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A New Diagnosis High Price for

Iran’s Hostage
Of Annual Checkups Triumph
PERSONAL JOURNAL | D1 OPINION | A14
* * * * * * TUESDAY, JANUARY 19, 2016 ~ VOL. CCLXVII NO. 14 WSJ.com HHHH $3.00
Last week: DJIA 15988.08 g 358.37 2.2% NASDAQ 4488.42 g 3.3% STOXX 600 329.84 g 3.4% 10-YR. TREASURY À 28/32 , yield 2.035% OIL $29.42 g $3.74 EURO $1.0917 YEN 117.02
China,
What’s
CLOCKWISE FROM TOP LEFT: HEKMATI FAMILY/REUTERS; REUTERS; ARAM BOGHOSIAN/EUROPEAN PRESSPHOTO AGENCY
Fed Policy
News
Business & Finance
Weigh on
all Street will try to
Investors
W divine the impact of
China’s troubles on the U.S.
Markets watch Beijing
economy and Fed policy af- data, pace of rate hikes
ter the worst yearly start
for U.S. stocks on record. A1 BY GREGORY ZUCKERMAN
China posted its slowest AND BEN EISEN
economic growth in a quar-
ter century, with GDP ex- As investors contend with
panding 6.9% in 2015. A9 the worst yearly start on record
for stocks, Wall Street this week
Europe’s corporate bonds
will try to divine how rapidly
are trading at recession
China’s growth is weakening
levels, another sign market
and what the ripples from that
turmoil could spread into
country’s troubles mean for the
the wider economy. C1
U.S. economy and central-bank
Barclays is drawing up policy.
plans to sell off a big stake in China on Tuesday released
its African business as lend- data showing economic growth
ers world-wide pull back last year slowed to 6.9%, its
from emerging markets. C1 weakest pace in a quarter-cen-
tury, confirming a loss of mo-
Samarco was warned of
Five American prisoners were released in Iran this weekend after long, secret negotiations. Among those reunited with family were mentum in the world’s second-
structural problems in one of
former U.S. Marine Amir Hekmati (top left, at center), journalist Jason Rezaian (right) and student Matthew Trevithick (bottom left). largest economy. The growth
the Brazilian mining firm’s
rate moderated to a lower-than-
dams a year before its col-
After U.S., Iran Strike Deals,

expected 6.8% for the fourth
lapse, an engineer said. B1
quarter, its lowest reading since
Adidas tapped Henkel the financial crisis.
CEO Rorsted to lead the The data came after yet an-
firm, succeeding Hainer other down day in global mar-
Higher Hurdle Awaits: Syria

who will step down early. B1 kets, with European and Asian
stocks on Monday mostly lower
Suncor agreed to ac-
and oil prices again declining.
quire Canadian Oil Sands,
U.S. markets had a reprieve for
raising its takeover bid for
the Martin Luther King Jr. holi-
its rival to $2.92 billion. B2
BY CAROL E. LEE The president sought to ad- sues, a U.S. lawmaker said. A gue that Iran is getting the day.
SpaceX failed to land the dress domestic concerns about fourth arrived back in the U.S. better deal in this expanding, In midday trading in Asia
main part of a spent rocket The prisoner exchange be- his Iran diplomacy by hitting on Sunday. The fifth chose not yet still adversarial, relation- Tuesday, stocks were higher,
on an ocean platform for the tween the U.S. and Iran, coin- Tehran with new sanctions to leave Iran, according to U.S. ship. And he has to manage with the Shanghai Composite
third time in about a year. B3 ciding with the completion of aimed at its ballistic-missile officials. fears cutting across both par- Index up 2.3%.
the nuclear deal, marked mile- program, just hours after the They were traded for seven ties that Tehran will stoke sec- Since the start of the year,
Puerto Rico is running
stones in President Barack nuclear deal went into effect imprisoned Iranian nationals tarian tensions in the Middle when a selloff in China on
out of money faster than
Obama’s policy of engagement, on Saturday and five American and a commitment by the U.S. East after receiving roughly 2016’s first day of trading
expected, widening the gap
but ones that will be difficult prisoners were released in Iran to drop efforts to arrest more $100 billion from sanctions re- kicked off a domino effect
to cover debt payments. C2
to repeat as he turns to the after long, secret negotiations. than a dozen others. lief in return for scaling back around the globe, investors have
“Ride Along 2” knocked next challenge: resolving the Three of the five, including But any further advance- its nuclear program. debated how important that
“Star Wars” off its month- conflict in Syria. a Washington Post reporter, ment in Mr. Obama’s engage- “There’s zero political space country’s slowing economy is to
long No. 1 box-office spot. B5 With the clock winding Jason Rezaian, who spent 545 ment policy, including on Please see SYRIA page A10 the sustainability of the U.S.
down on the Obama adminis- days in jail, were undergoing Syria, faces significant hurdles. economic expansion and long
World-Wide tration, election-year politics medical checks at a U.S. mili- Mr. Obama must contend Saudi efforts to isolate Iran Please see MARKET page A2
in Washington and Tehran tary hospital in Germany on with critics—including Repub- face resistance....................... A10
make prospects for additional Monday. None of them had any lican presidential candidates Western companies aren’t Latest data show China’s
Obama faces major hur- cooperation deeply uncertain. immediate, serious medical is- vying to succeed him—who ar- racing to Iran.............................. B4 slowdown deepens................. A9
dles in advancing his en-
gagement policy with Iran
following the prisoner ex-
Adidas Names Outsider as CEO
change and nuclear deal. A1
Iraqi police searched a
BUGS IN WI-FI HOOKUPS Share performance since the end of 2013
Baghdad suburb for three
Americans thought to have
been kidnapped by Iran-
backed Shiite militias. A10
CRIPPLE WEB SECURITY 150%
100
Taiwan’s president-elect Rarely patched software holes make home routers vulnerable to hackers
wants to strip the Kuom-
intang of many of its assets Under
after the party’s defeat in BY JENNIFER VALENTINO-DEVRIES ware with its chipset and hadn’t updated it. 50 Armour
the weekend’s election. A9 Router makers used those chips in more
In late 2014, a small Massachusetts soft- than 10 million devices. The router makers Nike
Many Saudi allies are re-
ware company got an ominous email: A said they didn’t know a later version of Alle- 0
sisting the kingdom’s at-
computer-security researcher said a flaw in gro’s software fixed the bug. Adidas
tempts to assemble a broad
one of its programs put millions world-wide The router flaw highlights an enduring
anti-Iranian coalition. A10
at risk of being hacked. problem in computer security: Fixing bugs
Flint’s mayor said the Engineers at the company, Allegro Soft- once they have been released into the world –50
Michigan city needs much ware Development Corp., analyzed the flaw is sometimes difficult and often overlooked. 2014 ’15 ’16
more federal aid to recover in the program, which can help users access The flaw’s creator must develop a fix, or Source: FactSet THE WALL STREET JOURNAL.
from lead in its water. A3 the controls of home Internet routers. They “patch.” Then it often must alert millions of
quickly realized something strange: They technically unsophisticated users, who have FALLEN BEHIND: German sportswear maker Adidas, which has lost
The GOP primary fight
had fixed this bug nearly 10 years earlier. to install the patch. ground to rivals Under Armour and Nike, named Kasper Rorsted,
is souring critical constitu-
But it lived on, even in new devices. The chain can break at many points: currently head of Henkel, to lead the company. B1
encies from the party, ac-
The reason: A component maker had in- Patches aren’t distributed. Users aren’t
cording to a new poll. A4
cluded the 2002 version of Allegro’s soft- Please see BUGS page A12
Clinton and Sanders
courted black voters in
South Carolina ahead of
next month’s primary. A5 Trump, Cruz Conservative Choices India’s Superrich Have Supercars, but Nowhere to Drive
Candidate preference among i i i
Global business leaders
sought common ground with
the Vatican on ethical issues
Fight on GOP the 61% of Republican primary
voters who identify as Crowded, bumpy streets send motorists searching for a place to strut
at a two-day meeting. A8
Islamic State captured
Right Flank conservative.
Trump 31%
BY JOANNA SUGDEN in the morning in an effort to
ground from regime forces BY REID J. EPSTEIN Cruz 27% avoid the worst traffic and
in an eastern Syrian city. A10 KOLKATA—When Indian find stretches of open road.
Carson 12%
MILFORD, N.H.—Jennifer property developer Parveen On Thursday nights after 10
Died: Glenn Frey, 67, gui-
Ouellette is like many conserva- Rubio 10% Agarwal bought a papaya-or- p.m., they head out on a
tarist and founding member
tives two weeks before the first ange Lamborghini Gallardo, it A Lamborghini Gallardo weekly foray through India’s
of rock band the Eagles. B5 Bush 5%
votes are cast: thrilled that Sen. came with the works—550- onetime colonial capital, set-
Ted Cruz is a leading Republi- Christie 4% horsepower engine, high-per- the West for Mother Teresa ting off from the Eden Gar-
CONTENTS Heard on Street.... C6 can presidential candidate but formance brakes and an elec- and extreme poverty, share dens cricket ground.
Arts in Review...... D5 In the Markets....... C4 Fiorina 2%
Business News... B2-4 Opinion.............. A13-15
flummoxed that his top chal- tronically controlled rear the crowded streets with One recent evening, about a
CFO Journal............. B6 Sports.......................... D6 lenger is Donald Trump. Kasich 2% spoiler. hand-pulled rickshaws, horse- dozen men and their ma-
Crossword................. B6 U.S. News............. A2-3 “How do I convince these The only thing missing: a drawn carriages, livestock, jay- chines, including a midnight-
Global Finance........ C3 Weather..................... B6 Source: WSJ/NBC News telephone poll, of
people to stop looking at the 400 Republican primary voters conducted place to drive it. walkers and other gawking blue Aston Martin Virage, a
Health & Wellness.. D2-4 World News..... A8-10
shiny object and to understand Jan. 9-13 “These kinds of cars are motorists. white Ferrari 458 Spider and a
who is the constitutional con- THE WALL STREET JOURNAL. supposed to be driven on open “They come from all sides, Bentley Continental GT con-
> servative?” the mother of two roads,” said 33-year-old Mr. and you’re sitting so low in vertible, went for a spin, criss-
from Atkinson, N.H., asked Mr. ing, the GOP establishment Agarwal, who bought the car these cars, you can’t see crossing bridges over the
Cruz at a gathering here Sun- wing’s split in support of mul- in 2014. “Kolkata roads are pa- them,” he said. Hooghly River.
day night. “I am having a big tiple candidates would in pre- thetic.” Mr. Agarwal and some Rishi Raj Lohia, a 26-year-
fight with my sister about this.” Please see SPLIT page A4 Mr. Agarwal and his friends friends started a supercar old tea-estate owner who sells
s Copyright 2016 Dow Jones &
Company. All Rights Reserved As the 2016 primary season in Kolkata, the eastern Indian club, organizing weekly group his products to British luxury
barrels toward its first ballot- Election 2016......................... A4-5 city probably best known in drives late at night and early Please see CARS page A12
A2 | Tuesday, January 19, 2016 * ***** THE WALL STREET JOURNAL.
U.S. NEWS
Illinois Budget Deadlock Hits College Enrollments
BY DOUGLAS BELKIN costs. makers says university tuition
Republican Governor Bruce rates have tripled in 14 years,
The budget impasse in Illi- Rauner and leaders in the producing $1.5 billion in new
nois is beginning to depress Democratic-controlled legisla- revenue over which the gen-
enrollments at the state’s col- ture have failed to bridge ide- eral assembly has no control.
leges and universities, as state ological differences and craft a It also highlights adminis-
money earmarked for low-in- state budget for the fiscal year trative bloat, golden para-
come students remains tied up that began July 1. Mr. Rauner chutes and lobbying costs.
in a political stalemate that has called for broad changes, The memo follows two
shows no signs of easing. including curbs on unions he golden parachutes that came
More than 1,000 students argues would save the state to light at state schools in
failed to return for the second and businesses money. 2015. In January, trustees at a
semester as their schools Democrats, who are led by community college outside
stopped picking up the tab for House Speaker Michael Madi- Chicago agreed, in a closed-
the $373 million Monetary gan, say those issues are unre- door session, to pay their
DAVID MERCER/ASSOCIATED PRESS

Award Program, said Randy lated to the budget. Illinois president $763,000 to retire
Dunn, president of the South- has the lowest credit rating of three years earlier than stipu-
ern Illinois University system. any state in the nation and the lated in his contract. In Au-
The program normally pro- comptroller estimates the gust, the chancellor at the
vides grants of up to nearly state is on track for a deficit University of Illinois at Ur-
$5,000 to some 128,000 stu- of $5 billion, or nearly 15% of bana-Champaign was poised to
dents with mean family in- annual spending, this year. receive $400,000 to resign,
comes of about $30,000, said Democrats last week asked but she was reassigned.
Lynne Baker, spokeswoman for for $168 million to pay the Mr. Rauner this fall signed
the Illinois Student Assistance University of Illinois’s Urbana campus, along with others, has prompted public scrutiny over funds. schools back the money they a measure curbing community
Commission, which adminis- fronted to cover the grants. college severance packages.
ters the program. But with no student body president at the where many of the school’s Meanwhile schools around Mr. Rauner shot back that the “We all get the theater of
state budget in place since University of Illinois. “We are 4,800 students receive money the state say they are dipping state’s public higher education Illinois politics,” said Mr.
summer, the program’s fund- at a really critical point.” under the program, can’t keep into reserves, laying off teach- system was filled with crony- Dunn. “I just hope we don’t
ing has stopped. The problem is poised to covering the cost of the ers and cutting programs and ism, waste and inefficiencies lose piece by piece, in this in-
“There are a lot of students grow quickly as schools wait grants, said Tom Wogan, the scholarships. Some college that need to be rooted out. cremental fashion, what just
at risk right now of losing for their share of about $1 bil- school spokesman. “By March, leaders are advocating for per- A memo signed by his dep- 20 years ago was one of the
money and dropping out of lion in state funding. we will be close to not having mission from the legislature to uty chief of staff and circu- country’s best systems of
school,” said Mitch Dickey, Chicago State University, enough money to operate.” borrow to pay for operating lated among Republican law- higher education.”
him for not having a front li-

Honoring Martin Luther King Jr.’s Legacy
U.S. cense plate will receive $5.3 mil-
lion under a settlement with the
Watch school announced Monday.
The deal gives the family of
Samuel DuBose $4.85 million
and promises free undergraduate
tuition for his 12 children. The
agreement also provides for a
HAWAII memorial commemorating Mr.
DuBose and an apology from the
Search Continues for university.
Marines After Crash The 43-year-old was shot and
Authorities searching the area killed behind the wheel of his car
where two Marine helicopters on July 19 during a traffic stop
crashed off Hawaii found some near campus. Officer Ray Tens-
life rafts that were carried ing, who has been charged with
aboard the aircraft, but still no murder, has pleaded not guilty.
sign of the 12 crew members His attorney says he feared be-
who were on board. ing dragged under the car as Mr.
There is no indication that DuBose tried to drive away.
anyone was aboard the rafts, —Associated Press
based on their condition and the
lack of any personal effects, COLORADO
Coast Guard Chief Petty Officer
Sara Mooers said.
Man Dies on Way
OLIVER CONTRERAS/ZUMA PRESS
The search for the Marines To Hospital Delivery
entered its fourth day on Mon- A Colorado man driving his
day, with plans to search into pregnant wife to the hospital to
the night. Rescuers from agen- deliver their third child crashed
cies have been searching since and died after suffering some
the Coast Guard was notified kind of medical problem.
late Thursday of the crash. The Colorado State Patrol
The Marines were alerted says 37-year-old Tony
when the CH-53E helicopters Schmucker died after his Nissan FRATERNITY SALUTE: Members and guests of the Alpha Phi Alpha fraternity, to which Martin Luther King Jr. was a member, gather
carrying six crew members each Pathfinder went down an em- Monday by his memorial in Washington on the federal holiday that honors the civil rights leader who was assassinated in 1968.
failed to return to base at Ka- bankment west of Fort Collins
neohe Bay following a nighttime early Wednesday. The wife and
training mission. Chief Petty Offi- the couple’s two sons all sur-
cer Mooers said that it was still
a search for survivors.
—Associated Press
vived. A family fundraising web-
site said Jill Schmucker suffered
a broken back but delivered a
baby boy by caesarean section
MARKET Deflated
Yield on the 2-year Treasury note
1.1%
Dallas Fed, said at an event on
Friday.
The Fed hasn’t exactly pulled
the rug out from under inves-
OHIO at the hospital. Continued from Page One tors. Its December interest-rate
Bao Dandan/Xinhua via ZUMA Wire
Coroner’s investigator James upswing in stocks. move was widely forecast. And
University to Pay MacNaughton said initial findings Federal Reserve offi- its new target for short-term
1.0
Millions for Shooting suggest a medical event, and not cials continue to point to signs rates, at 0.25% to 0.50%, re-
The family of a man shot and injuries from the crash, caused of economic strength, after they mains well below the long-term
killed by a University of Cincin- Mr. Schmucker’s death. last month raised short-term in- average, meaning the bank’s
0.9
nati police officer who stopped —Associated Press terest rates for the first time in stance is still supportive of eco-
nine years and signaled an incli- nomic growth and financial
nation to continue with such markets.
0.8
boosts. Friday Other stimulative efforts by
But financial markets are 0.847% Investors are lowering the Fed, such as holding trillions
having difficulty adjusting expectations for rate increases of dollars in bonds, remain in
to the central bank’s new pos- 0.7 from the Fed and Chairwoman place. And Fed officials have in-
ture after years of easy-money Nov. Dec. Jan. Janet Yellen. dicated the bank won’t automat-
policy helped boost stocks and Source: Ryan ALM THE WALL STREET JOURNAL. ically raise rates further but will
bonds. It is a disconnect that is consider any changing circum-
leading some investors to voice Jeffrey Gundlach, who runs nomic outlook, the situation stances.
criticism of the Fed as Wall asset manager DoubleLine Capi- does not appear to have Still, some investors appear
Street learns what life is like tal LP, has said the Fed changed much since the last less sure the Fed will raise rates
with less central-bank support. shouldn’t be considering boost- [Fed] meeting.” this year. The December federal-
In recent communications ing rates any time soon and was While saying there are weak funds futures contract is priced
with clients, Ray Dalio of hedge premature raising rates last spots in the economy, Fed offi- at a level that implies a 94%
fund Bridgewater Associates LP, month. cials have continued to point to chance the Fed will increase
which manages $154 billion, ar- “The market is saying the strength in the jobs market as a short-term rates one time this
gued that the Fed should stand economy is slowing quite con- sign of comfort. The U.S. added year, down from 100% just last
pat for now and be “agnostic” siderably. If the market is right, 292,000 new jobs in December, week, said Peter Boockvar, chief
about raising rates later this [Fed officials] almost certainly topping analyst expectations, market analyst at Lindsey
year, according to a person fa- won’t raise rates as much as while the unemployment rate Group, an economic and market
miliar with the matter. they said during the December stayed at 5%. Mr. Dudley also research firm.
meeting,” said Ben Inker, co- said on Friday that core infla- He argues the Fed should
THE WALL STREET JOURNAL head of asset allocation at tion, which strips out the food raise rates this year even if this
(USPS 664-880) money-management firm GMO. and energy categories, has re- risks pushing the economy into
(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) The divide between investors mained steady despite the re- a recession, because it would
(Western Edition ISSN 0193-2241) and the Fed was shown in stark cent drop in oil prices. put the U.S. on a healthier long-
Editorial and publication headquarters:
1211 Avenue of the Americas, relief Friday. As the Dow Jones “Having a selloff in the S&P term trajectory.
New York, N.Y. 10036 Industrial Average plunged 391 [500] might not suggest a dra- “There will never be a good
Published daily except Sundays and general
legal holidays. Periodicals postage paid at New
points, New York Fed President matic decline in underlying eco- time to raise rates after being so
York, N.Y., and other mailing offices. William Dudley said in a nomic conditions,” Robert Ste- easy for so long,” Mr. Boockvar
POSTMASTER: Send address changes to The speech: “In terms of the eco- ven Kaplan, president of the said. “But we can either turn
It happens. Especially when you’re flying in the Wall Street Journal, 200 Burnett Rd., Chicopee,
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Regardless of the Fed’s ulti-
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uncompromising performance, the Global 6000 truly publication of an advertisement shall
constitute final acceptance of the advertiser’s
Pittsburgh Steelers coach SABMiller PLC brewery. The experience of recent weeks will
rises above the rest. To learn more, visit aworldabove.com order. Chuck Noll was incorrectly photo caption incorrectly said leave investors less likely to
Letters to the Editor: given as Knoll in a Sports arti- it showed fermentation tanks. seek consolation from the cen-
Fax: 212-416-2891; email: wsj.ltrs@wsj.com
cle on Saturday about NFL tral bank. “We’ve got this situa-
NEED ASSISTANCE WITH coaches. Dr. Suzanne Trott is a tion where the stock market has
YOUR SUBSCRIPTION? plastic surgeon. An Off Duty become fascinated with what
CONTACT CUSTOMER SUPPORT. A photograph that ap- article on Jan. 9 about the the Federal Reserve does and
By web: customercenter.wsj.com peared with a Money & Invest- cost of beauty products and really thinks the Federal Re-
By email: wsjsupport@wsj.com ing article on Thursday about services incorrectly said she serve is there to help the stock
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THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | A3
U.S. NEWS
Oil Slump Hits Houston Home Market

Sales fall, builder where housing markets rode
the energy boom look shaky.
incentives rise as Home prices in North Dakota
buyers turn cautious are 22% overvalued, while the
figure in Texas is 15% and Col-
in energy slowdown orado’s prices are 10% too
high, according to the histori-
BY LAURA KUSISTO cal average ratio of prices to
AND KRIS HUDSON incomes, says Arch Mortgage
Insurance Co.’s Housing and
HOUSTON—Home sellers Mortgage Market Review.
are slashing prices and offer- Oil prices tripled between
ing incentives to keep buyers 2009 and 2014, helping Hous-
from walking away from con- ton outpace every other U.S.
tracts as an 18-month oil metropolitan area in home
slump buffets this city’s once- construction in the period.
booming housing market. Prices for existing Houston
Home-construction permits homes rose 37% since 2011.
in the area plunged 26% from a Houston’s home sales man-
year earlier in the third quarter, aged to sustain their momen-
while December sales of existing tum until this past summer,
single-family houses fell nearly when news of the Iran nuclear
10% from the same month of accord spurred concerns of in-
2014, according to data from the creased Iranian oil production
Commerce Department and adding to a supply glut. At the
SCOTT DALTON FOR THE WALL STREET JOURNAL

Houston-area brokers. same time, big Houston oil-
Builders are hustling to re- and-gas employer ConocoPhil-
verse declining sales and ris- lips warned workers of layoffs.
ing cancellation rates by beef- Olu Fagbemiro and her hus-
ing up incentives. KB Home in band were concerned enough
October advertised homes in about instability in the indus-
several of its Houston develop- try to demand a price cut on
ments with price cuts of up to the home they were under
$31,000 and commissions contract to buy. Ms. Fagbe-
available to buyers’ agents of miro, a consultant and engi-
$2,000 to $10,000. neer for the oil industry, and
Overall, the area’s average her husband, an accountant in
single-family home price was the industry, in October got Olu Fagbemiro and her husband persuaded a builder to cut $14,000 from the price of their Houston home as low oil prices hurt sales.
down about 7.5% to just over Keystone Classic Homes to cut
$280,200 in December from its $14,000 from the price of their the campus as it opened in Likewise, the number of
June record high, according to three-bedroom home under phases in 2014 and 2015. De- homes listed at $1 million or
the Houston Association of Re- construction near down- velopers readied thousands of more rose 54% in the third
altors. The average sale price town Houston, to $621,000. lots for upscale houses in an- quarter from a year earlier, ac- B E L M O N D M A R O M A R E S O R T & S PA ,
for luxury homes, defined as Ms. Fagbemiro said her hus- ticipation of a flood of oil ex- cording to Redfin. The surge R I V I E R A M AYA
the top 5% of the market, fell band’s job isn’t in peril, but ecutives moving to the area. allows buyers to be more se-
5% to $1.3 million in the fourth they believed the industry’s Now, unsold homes sit near lective.
quarter from the same period struggles were reason enough the Exxon Mobil campus, with Gary Sova and his wife, IN A PART OF
a year earlier, according to to renegotiate. the supply of so-called specu- Beth, were able to negotiate a
real-estate brokerage Redfin. Michele Marano, a Houston lative houses there exceeding roughly $140,000 discount on THE WORLD
Behind the slump is the real-estate agent who special- the metropolitan area’s aver- a home in the $1 million range
plunge in oil prices from close izes in oil-and-gas clients, said age since the second quarter of in the Woodlands, near the WHERE SO MANY GO,
to $100 a barrel in August “my buyers have completely 2014, according to housing Exxon campus. Mr. Sova, a 62-
2014 to about $29 Monday.
“While Houston has figured
backed off.” She added, “I
have an enormous number
market researcher Metrostudy,
part of Hanley Wood LLC.
year-old executive in the waste
and recycling business, said
A ROMANTIC HIDEAWAY
out how to diversify [its indus- of buyers but they’re sitting.” The higher end of Houston’s the market shifted signifi-
try makeup] a lot, we still are Few neighborhoods illus- market has been hit especially cantly in favor of buyers from KNOWN ONLY TO A FEW.
an oil-and-gas city,” said Scott trate Houston’s slowdown as hard. The number of unsold when they started looking in
Merovitch, Houston division dramatically as the communi- lots for homes priced at February. He said many buyers
president for closely held ties that sprouted since 2011 $400,000 and up has bal- were selling because they had
builder Chesmar Homes LP, around the site of Exxon Mobil looned, said Lawrence Dean, a lost jobs or were relocating.
which saw a higher cancella- Corp.’s 385-acre campus just Metrostudy senior adviser Agents started to say “just
tion rate in Houston in 2015 north of Houston. Roughly in Houston, who estimated it make me an offer.” That never
and notched 20% fewer sales. 10,000 workers, most already will take three to four years to happened at the beginning of
Across the country, regions living in Houston, moved to exhaust the supply. their house hunt, he said.
Michigan
Mayor
Calls for
More Aid
RICK BOWMER/ASSOCIATED PRESS
BY DOUGLAS BELKIN
The mayor of Flint, Mich.,

said Monday that federal aid
the city is set to receive is just
the tip of the iceberg of what HOTELS | TRAINS | RIVER CRUISES | JOURNEYS
will be needed to recover from 8 0 0 - 2 3 7-1 2 3 6 O R C O N TAC T YO U R T R AV E L C O N S U LTA N T
lead contamination in its BELMOND.COM
drinking water. Hildale, Utah, and Colorado City, Ariz., adjacent towns at the base of the Red Rock Cliff
President Barack Obama on mountains, are being sued by the U.S. government over discrimination on religious grounds. © 201 6 B elmond M a nagement Ltd . B elmond is a registered tradema rk .
Saturday declared a federal
Arizona Trial to Scrutinize

emergency in Michigan, free-
ing as much as $5 million in
federal aid toward the cost of
bottled water and filters, car-
Polygamous Communities
tridges and other supplies to
help Flint cope with high lev-
els of lead in its water. But he
declined to declare it a major
disaster, which under law ap- BY SARA RANDAZZO The alleged discrimination, The Church of Jesus Christ
plies to natural disasters and according to the Justice De- of Latter-day Saints, more
certain other situations. The A trial starting this week in partment, includes refusing to commonly known as the Mor-
state is looking into an appeal Phoenix will pit a polygamous arrest church members who mon Church, said through a
of the decision. religious community against committed crimes against spokesman that it has no con-
Flint Mayor Karen Weaver the U.S. government, which nonmembers, destroying crops nection to various fundamen-
called the contamination a claims the community’s public on nonmembers’ farms and talist groups in the Southwest
“man-made disaster” and said officers discriminate against failing to fairly provide hous- and would excommunicate
the city of 100,000 will need people who don’t share the ing and utility services such as those who practiced polygamy.
much more than $5 million. sect’s beliefs. water to nonmembers, in vio- A judge denied a request
“We’ve got an infrastructure The Justice Department in lation of federal laws. from government lawyers to
crisis and we have a public- 2012 sued Colorado City, Ariz., The fundamentalist sect fol- force Lyle Jeffs, an FLDS
health crisis,” she said. and Hildale, Utah, adjacent lows the teachings of Warren bishop and brother of Warren
The trouble has been un- towns along the state line Jeffs, who is serving a life sen- Jeffs, to testify in court. Testi-
folding for months in the Rust populated by members of the tence in Texas for sexually as- mony from a video deposition
Belt city, which is still synony- Fundamentalist Church of Je- saulting underage girls. He could still be played for a jury.
mous with the decline of the sus Christ of Latter-day Saints, was convicted in 2011 after Amos Guiora, a law profes-
U.S. auto industry. State offi- or FLDS, which broke away years of scrutiny. At one point sor at the University of Utah
cials believe lead began leach- from the mainstream Mormon he appeared on the FBI’s Most who has studied the funda-
ing from service lines and Church after it rejected polyg- Wanted list. mentalist sect for several
plumbing into drinking water amy in 1890. Jeffrey Matura, an attorney years, said that if the govern-
when the city temporarily The government alleges for Colorado City, said religion ment is able to prove the com-
switched its water source to that city leaders and law en- played no role in the actions munity’s law enforcement isn’t
the Flint River in April 2014. forcement in the towns serve cited in the complaint and that independent but instead an
The switch was part of a at the bidding of church lead- “this case is an effort of the arm of the church, “it raises
cost-cutting move away from ers and routinely fail to pro- government to try and eradi- incredibly powerful questions
using Detroit’s water system tect the constitutional rights cate a religion that it finds on the separation of church
before Flint could begin re- of all residents. Opening state- distasteful.” and state.”
ceiving water from another ments are slated to begin Blake Hamilton, an attorney Separately, the 10th U.S.
authority in 2016. The city Wednesday in what is ex- for Hildale, said the town Circuit Court of Appeals in
stopped using river water this pected to be a five-week trial. plans to show there was no Denver is scheduled to hear
fall, after the extent of con- Testimony from current and pattern or practice of discrim- arguments this month over
tamination became apparent. former residents, police de- ination. There have been a few the legality of polygamy in
The percentage of children partment members, public of- isolated incidents in the past, Utah. A lower-court ruling in
in Flint with elevated levels of ficials and outside experts is he said, that led to some offi- 2013 struck down a criminal
lead nearly doubled from 2.1% likely to offer a rare view into cers being removed from duty. ban on polygamous cohabita-
before using water from the the inner workings of the “This is an overreach by the tion, saying the state failed to
Flint River to 4% in 2015, ac- roughly 10,000-person com- federal government,” he said. demonstrate the harms associ-
cording to a report released in munity, located about an A Justice Department ated with it. Issuing multiple
September by a medical center hour’s drive from mountainous spokeswoman declined to marriage licenses to a single
in the city. Zion National Park in Utah. comment. person is still prohibited.
A4 | Tuesday, January 19, 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.
A Year of Simple Answers to Complex Questions ing the simple solution to the our strongest allies. They’re servative, including 35% who
Identity Politics complicated problem. “Mr. Muslim. You’re not going to saw themselves as very con-
How Democratic and Republican primary voters rate the ideology of Gorbachev, tear down this even allow them to come to servative.
themselves and prominent political figures wall,” he proclaimed in a our country?” They saw Mr. Cruz as
speech at the Berlin Wall—a Mr. Bush has in recent somewhat more conservative
Democratic primary voters desire that, implausibly months given two detailed than themselves. But these
enough, was fulfilled. speeches—one at the Reagan Republican voters also con-
CAPITAL JOURNAL Liberal Moderate Conservative Unknown Of course, Mr. Reagan also Library in California and the sidered themselves more con-
GERALD F. SEIB Themselves proposed that the U.S. and second at the Citadel in South servative than Mr. Trump or
53% 38 7
Soviet Union get rid of all Carolina—laying out his former President George W.
their nuclear weapons, a vis- broad and sophisticated ap- Bush, and considerably more
T
Bernie Sanders 63% 14 8
wo debates held in re- cerally appealing idea but one proach to defeating the Is- conservative than Jeb Bush,
cent days, one among Barack Obama 44% 44 9 that his own secretary of lamic State threat. Yet Texas who, when serving as Flor-
Republicans and the state knew wasn’t only un- Sen. Ted Cruz got more atten- ida’s governor in the early
Bill Clinton 37% 48 10
other among Democrats, re- workable but would make the tion with his simple declara- 2000s, actually was consid-
vealed a stark reality of the Hillary Clinton 37% 48 11 world a much more danger- tion that he would “carpet ered quite conservative.
2016 presidential campaign: ous place when irrational bomb” ISIS fighters until we Similarly, among Demo-
We are in a time of compli- players filled the nuclear all learn whether “sand can cratic primary voters, 53%
cated questions in search of Republican primary voters void. glow in the dark.” called themselves liberal and
simple answers. So simplicity has its limits, only 38% called themselves
T
That is a Themselves 5 33 61 and the reality is that the o some extent, cam- moderate. They tended to
dynamic that world has more areas of gray paigns always involve view Mr. Sanders as more lib-
Ted Cruz 2 20 67
works to the than black and white. Mrs. distilling simple solu- eral than themselves, but also
advantage of George W. Bush 3 41 54 Clinton has a point when she tions to complex problems. saw themselves as more lib-
candidates says that simply breaking up But the urge to do so is al- eral than President Barack
with clear Donald Trump 15 35 44 the big banks might seem an ways higher in a primary elec- Obama, former President Bill
and simple appealing idea, but misses the tion, when speaking to a Clinton, or Mrs. Clinton. Al-
philosophies (think Donald Jeb Bush 11 44 41 problem of the shadow bank- party’s true believers rather most half viewed her as a
Trump and Bernie Sanders) ing system, where the poten- than undecided or indepen- moderate.
and to the disadvantage of Source: January WSJ/NBC News poll THE WALL STREET JOURNAL. tial for dangerous practices is dent-minded voters in the ide- Most voters likely know,
candidates more in the center, higher than in the big-bank ological middle. And that dy- down deep, that the world ac-
offering nuanced solutions painless solution. His closing as somebody who knows the mainstream. namic may be more true this tually isn’t simple. But they
rather than quick fixes (think argument in the Republican difference. Thus, in Sunday And Mr. Bush correctly time, amid signs that both also know that attempts in
Hillary Clinton and Jeb Bush). debate in South Carolina last night’s Democratic debate, pointed out in the latest GOP parties have moved further Washington to find compro-
This trend is fueled by the week was, literally, this: “We also held in South Carolina, debate that Mr. Trump’s idea out to the ideological wings. mises in the center have
fact that each party’s base will make America great he could easily summarize his of simply imposing a tempo- In the latest Wall Street mostly come up empty in re-
has moved toward the ideo- again. We will win on every- views on how to regulate big rary ban on all Muslims en- Journal/NBC News poll, vot- cent years. The challenge for
logical wings of the left and thing we do.” banks: “Break them up. I be- tering the U.S. carries signifi- ers were asked to define their candidates in 2016 is to show
right, where the world looks It’s also an environment lieve that’s what the Ameri- cant diplomatic risks. “This own ideology, as well as the they have sophisticated an-
black and white, not gray. friendly to the prescriptions can people want to see.” policy is a policy that makes ideology they saw among top swers to complex problems—
It is an environment of Mr. Sanders, who tends to There is a touch of Ronald it impossible to build the co- political figures. Among Re- but also know how to imple-
ready-made for Mr. Trump, describe a world of black hats Reagan in such approaches. alition necessary to take out publican primary voters, 61% ment them in a polarized
master of the simple and and white hats, and himself He too was a master of offer- ISIS,” he said. “The Kurds are identified themselves as con- world.
GOP Rancor Sours Voters SPLIT

“I don’t think anyone has a
plan to deal with this right
now,” said Mr. Moore, who
hasn’t endorsed in the race but
Continued from Page One opposes Mr. Trump.
WSJ/NBC poll finds vious years have buoyed con- The Club for Growth, a
nominating fight Primary Focus servative activists, who have group that advocates for con-
Voters are paying more attention to the Republican primary race than to the Democratic contest, but typically been the ones to split servative fiscal policies and
draws attention, but more of them also say the process has hurt the GOP’s image than say so of the Democratic Party. among several contenders. But that in recent years backed
Mr. Trump’s unexpectedly en- candidates who defeated more
turns off many people Registered voters who are following the primary races ‘very closely’ during candidacy has compli- centrist GOP Senate candi-
Total Midwesterners Latinos Moderates Independents Democrats Republicans cated that. dates, last fall became the first
BY PATRICK O’CONNOR In the most recent Wall outside group to spend money
50%
Democrats Republicans Street Journal/NBC News poll, attacking the party’s front-
WA S H I N G T O N — B r y a n 61% of Republican primary runner when it invested $1
Yarde, a 25-year-old indepen- voters describe themselves as million in an anti-Trump TV ad
dent voter from Florida who 40 conservative. Messrs. Trump campaign in Iowa.
says he leans conservative, is and Cruz split that potentially “I think all of them have to
closely following the Republi- dominant voting bloc almost in address Trump,” Club Presi-
can presidential primary—and 30 half, with 31% saying they sup- dent David McIntosh said of
doesn’t like what he sees from port the New York business- his favored candidates, who in-
the two leading candidates, man while 27% are backing the clude Mr. Cruz, Sen. Marco Ru-
businessman Donald Trump senator. Mr. Cruz outpaces Mr. bio and Sen. Rand Paul.
20
and Texas Sen. Ted Cruz. Trump among the most con- No group has followed the
“The nativist tendencies of Percentage point difference servative Republican primary Club for Growth’s lead in put-
Cruz and Trump are pretty voters by 36% to 28%, by vir- ting money behind an attack
atrocious,” said Mr. Yarde, 9 9 6 7 4 7 27 tue of his support among against Mr. Trump. Past at-
adding that he would consider evangelical voters. tempts to deter Mr. Trump’s
supporting Democrat Hillary To many activists, Mr. supporters failed in part be-
Clinton if either man wins the Net percentage-point difference in party image, more favorable minus less favorable Trump’s appeal among conser- cause his backers aren’t recep-
GOP nomination. 22 vatives lies more in his anties- tive to arguments about his
18
The Republican primary is 12 tablishment rhetoric, particu- past departures from conserva-
generating more interest than larly on issues such as tive orthodoxy, said Steve
the Democratic contest, but immigration, than on most Scheffler, president of the Iowa
that attention isn’t entirely -4 policy stances. As voting gets Faith & Freedom Coalition.
-11 -10 -9
good news for the party, a new closer, private gnashing of “For the all-or-nothing
Wall Street Journal/NBC News -23 -23 -20 teeth by conservative Republi- crowd, they might follow
poll found. The Republican -32 -35 cans about Mr. Trump, and his somebody just because they
nominating fight is souring support among many on the like them on one issue,” Mr.
critical constituencies, includ- -52 right, is beginning to burst Scheffler said.
ing independents, Latinos, sub- -59 into the open. Mr. Trump’s support has
Source: WSJ/NBC News telephone polls, most recent of 800
urban women and registered primary voters conducted Jan. 9-13; margin of error: +/-3.5 pct. pts. THE WALL STREET JOURNAL. A case in point came Mon- been so durable because a
voters open to supporting ei- day, when Mr. Trump was in- wide swath of the Republican
ther party in the fall. mary. That’s a shift from 2008, genuinely undecided about Trump. I think they’re just vited to speak at Liberty Uni- electorate has shown it cares
Overall, 42% of voters say when 43% said they were fol- which party to support in No- drawn to his celebrity.” versity, an evangelical more about a visceral connec-
the Republicans’ rambunctious lowing very closely the hotly vember are all much more in- The GOP front-runner, Mr. Christian school in Virginia. tion with a candidate fighting
nominating contest has given contested Democratic primary clined to view the Republican Trump, is viewed unfavorably Mr. Trump’s religious creden- the political establishment
them a less favorable impres- between Mrs. Clinton and Ba- Party more negatively as a re- by 58% of voters, compared tials have come under question
sion of the party, compared rack Obama, while 33% said sult of the primary. with the 29% who view him fa- during his campaign, and after
with the 19% who say they now the same about the GOP race. “I don’t know what’s hap- vorably. Those numbers haven’t he was given a glowing intro-
Some conservatives
view the GOP more favorably. The Republican contest is pening on the Republican side— budged much since he entered duction by Jerry Falwell Jr., have questioned Mr.
For Democrats, 28% view the driving negative impressions each one seems more crazy the race, despite his surge in the school’s president, Russell
party less favorably as a result among key voting blocs in a than the next,” said Joan King, the GOP field. That helps ex- Moore, who heads the Ethics
Trump’s religious
of their primary, while 17% general election. For example, 53, a swing voter from Green plain why the poll showed him and Religious Liberty Commis- credentials.
have a more favorable view. 45% of Latinos view the GOP Bay, Wis., who says she tends to losing by double-digit margins sion with the Southern Baptist
“Neither race is helping ei- more negatively as a result of back more centrist Republicans. to both Mrs. Clinton and Mr. Convention, tweeted: “Politics
ther party,” said Republican a primary in which the leading “I have a hard time buying that Sanders in hypothetical head- driving the gospel rather than than any particular issue, said
pollster Bill McInturff of Public contender, Mr. Trump, has ad- people really support Donald to-head matchups. the other way around is the Matt Schlapp, chairman of the
Opinion Strategies, who con- vocated the mass deportation third temptation of Christ. He American Conservative Union.
ducts the Journal survey with of millions of immigrants who The Wall Street Journal/NBC News poll was based on nation- overcame it. Will we?” “They are giving him the
Democrat Fred Yang of Hart are in the country illegally. wide telephone interviews of 800 registered voters, including 280 Erick Erickson, a Georgia benefit of the doubt, but they
Research. “People see both Just 13% of Hispanics view the respondents who use only a cellphone. It was conducted Jan. 9-13 talk-radio host who founded don’t know where he’s going to
by the polling organizations of Bill McInturff at Public Opinion
parties net negative because of party more favorably. Strategies and Fred Yang at Hart Research Associates. Individuals the website Redstate.com, said be on everything,” Mr. Schlapp
what they are watching, More college-educated were selected proportionate to the nation’s population in accor- he has “this conversation with said.
dance with a probability sample design that gives all landline tele-
though that is sharper on the whites are also turning their phone numbers, listed and unlisted, an equal chance to be in-
conservative groups every day, The clash between Messrs.
Republican side.” nose up at Republicans. Half of cluded. Registered voters age 18 or older were selected by a ‘What can we do to stop Cruz and Trump has intensi-
Some 36% of registered vot- those voters said the nominat- systematic procedure to provide a balance of respondents by sex. The cellphone Trump?’ ” Yet, he added, “a lot fied, with Mr. Trump telling
sample was drawn from a list of cellphone users nationally. Of the 800 interviews,
ers said they were following ing fight has given them a less 280 respondents were reached on a cellphone and screened to ensure their cellphone of them don’t want to burn ABC News that the senator is
the GOP contest closely, com- favorable impression of the was the only phone they had. In addition, 22 respondents were reached on a cell- bridges by going after him.” “a nasty guy” who is disliked
pared with the 27% who said GOP. Independents, suburban phone but reported also having a landline. Overall, the data’s margin of error is plus Penny Nance, chief execu- in Congress. Brent Bozell,
or minus 3.46 percentage points. The margin of error for subgroups is larger.
so about the Democratic pri- women and voters who are tive of antiabortion group chairman of the conservative
Concerned Women for Amer- group ForAmerica, predicted
ica, said socially conservative Mr. Cruz would get the better
groups like hers are concerned of Mr. Trump in a war of
Heard on the Stump at the prospect of Mr. Trump’s
winning the nomination: They
words between the two.
“It’s been Trump versus fill-
are practiced in combating in-the-blank to this point,”
Mollie Brown, one of the centrist Republicans—not said Mr. Bozell, who has en-
Kasich Searches teenagers who had just com- someone running as more of dorsed Mr. Cruz.
‘If I’m president For N.H. Celebrities pleted their presentation, said an outsider than they are. In Milford, Mr. Cruz encour-
Listening to a presentation at she had never heard of Mr. Mey- “I’ve been very clear about aged Ms. Ouellette to remind
you’re going to see a drug-abuse prevention center ers, the late-night TV show host my concerns and so have oth- her sister, who supports the
in Plymouth, N.H., GOP presiden- who lived in New Hampshire ers, but at the end of the day, businessman, that he, unlike
‘Merry Christmas’ tial candidate John Kasich inter- during his middle-school and we’re not good at attacking Mr. Trump, has been on the
in the department rupted. “I think you ought to add high-school years. this way,” Ms. Nance said. front line of conservative fights
a couple of people to the board “You don’t know who he is? Mr. Cruz, the son of a on immigration, gun control
stores.’ who are famous people in New He’s a big TV star,” the Ohio preacher, ends each event with and health care since entering
Hampshire, particularly athletes.” governor said. “Well, I was just a plea to supporters for prayer. the Senate in 2013.
DONALD TRUMP at Liberty Minutes later, he had a sug- with Leo this last week and I But the Cruz appeal among re- For Ms. Ouellette, it proved
University in Lynchburg, Va. gestion: “Seth Meyers! He’s on would get him, but I’m not that ligious voters hasn’t led to an to be a compelling answer. But
television. Maybe you can ask close to him. You know who I organized effort among lead- she didn’t know whether it
him to be an honorary board mean? Leo DiCaprio.” ing political evangelicals to try would be good enough for her
member.” —Reid J. Epstein to stop Mr. Trump. sister.
THE WALL STREET JOURNAL. * * Tuesday, January 19, 2016 | A5
Women Join Up to Boost Clinton

BY REBECCA BALLHAUS
Campaign
Wire
DES MOINES, Iowa—When
a volunteer for the Hillary
Clinton campaign approached INTERNATIONAL AFFAIRS
Deborah Cox and her husband,
Al, with “commit-to-caucus”
U.K. Debates Barring
cards last summer, Mr. Cox Trump From Country
thought he was signing up for British lawmakers debated on
an absentee ballot. Monday whether Donald Trump
Mrs. Cox knew exactly what should be barred from the U.K.,
she was doing—and would do the latest international fallout to
more than sign the card. his call for a temporary ban on
The 64-year-old artist, who Muslims entering the U.S.
had never previously been in- The debate doesn’t compel
volved in a political campaign, the U.K. government to take any
went on to become a precinct action, and the government has
captain in West Davenport, already signaled that Mr. Trump,
Iowa. She plans to spend up to a businessman with interests in
eight hours a day, four to five the U.K., won’t be barred.
days a week, phoning voters The Trump Organization has
on Mrs. Clinton’s behalf in the said any travel restriction on Mr.
weeks before the Feb. 1 caucus. Trump would force it to end
Ms. Cox is part of an army plans to invest more than £700
JOHN MINCHILLO/ASSOCIATED PRESS
of women in Iowa and other million (about $997 million) in

early-nominating states that his two Scottish golf resorts.
Mrs. Clinton and her allies are Sarah Malone, executive vice
mobilizing in the final weeks president of Trump International
before the caucus, a move that Golf Links, Scotland, said it was
could give the former secre- absurd that parliamentary time
tary of state’s campaign a was being wasted debating a
boost as polls show Vermont matter raised as part of the U.S.
Sen. Bernie Sanders closing in presidential election.
on her lead in the state. Volunteer Mishara Davis of Atlanta, Ga., right, in Manchester, N.H., last week. The campaign is tapping women to promote Mrs. Clinton. —Nicholas Winning
“Women gravitate toward
her,” Mrs. Cox said, citing Mrs. will invite supporters to an Moines, praising her handling Julie Stauch, a nonprofit such an advocate for children REPUBLICAN PRIMARY
Clinton’s strength under fire as event in Washington, D.C., that of “gendered attacks” over the consultant in West Des and always has been,” Mrs.
one of the qualities that at- will also feature Sen. Kirsten years. Moines, Iowa, is a member of Cox said.
Rubio Makes Indirect
tracted her to the Democrat. Gillibrand (D., N.Y.) and Olym- Three women’s rights Naral, Planned Parenthood and For the women, the appeal Pitch to Hispanics
“No matter what the situation, pic figure skater Michelle groups backing Mrs. Clinton Emily’s List, a group promot- is about more than the poten- Marco Rubio, who is Cuban-
she is so levelheaded, she is so Kwan. The event will mark the are also rallying their opera- ing pro-choice candidates that tial of electing the first female American and bilingual, is viewed
calm, she meets it with such launch of a group called “Mil- tions in early-nominating has endorsed Mrs. Clinton. She president—although that is in some quarters as the stron-
absolute fierceness,” she said. lennial Women for Hillary,” states, turning out volunteers hosts house parties to rally certainly a draw. “I’ve been gest GOP nominee against Dem-
The strength of Mrs. Clin- whose members are volunteer- to knock on doors and make volunteers and teach them waiting for this my whole life,” ocratic front-runner Hillary Clin-
ton’s Iowa volunteer operation ing for her campaign in early- phone calls on her behalf. how a caucus works. Some- said Kerry Bowen, a precinct ton because of his potential to
is key because of what she has voting states and elsewhere. Mrs. Clinton was en- times she holds a round of caucus chairwoman in Wind- siphon votes from the fast-grow-
at stake in the first-in-the-na- Last weekend, four female dorsed in recent weeks by “Jeopardy,” focused on Mrs. sor Heights, Iowa. ing Hispanic community.
tion balloting. Mr. Sanders has U.S. senators converged on Planned Parenthood and Naral Clinton’s biography. Other Rather, it is about what But the candidate rarely, if
consistently led Mrs. Clinton in eastern Iowa to campaign on Pro-Choice America, which times she starts a game of they say is at stake. ever, mentions his own ethnicity,
polls in New Hampshire, whose Mrs. Clinton’s behalf. The sen- backed then-Sen. Barack “caucus poker,” with hand- “I’ll do anything they need except in the context of describ-
primary is Feb. 9. If Mrs. Clin- ators—Tammy Baldwin of Wis- Obama in the 2008 primary. made cards addressing differ- me to do,” said Emily’s List ing his American Dream-like up-
ton loses back-to-back con- consin, Mazie Hirono of Ha- Those endorsements could de- ent scenarios for caucus night. President Stephanie Schriock, bringing by Cuban immigrants.
tests, it would deliver a blow waii, Amy Klobuchar of liver support from the groups’ Ms. Stauch said her parties who traveled to New Hamp- “We need to have a conserva-
to her campaign’s aura of inev- Minnesota, and Claire McCa- thousands of members in are often populated by retired shire and South Caro- tive movement that can attract
itability and boost Mr. Sand- skill of Missouri—talked early-voting states. women who haven’t ever en- lina last week and will head to people who haven’t voted for us
ers’s credibility going forward. up her record on women’s Jessica Flannery, the Iowa gaged in political campaigns Iowa later this month to rally before,” Mr. Rubio told a crowd
Mrs. Clinton does, however, rights, in particular her pro- organizing director for Naral, but are drawn to Mrs. Clinton. volunteers on Mrs. Clinton’s Monday in Waverly, Iowa, ticking
lead in national polls of Demo- choice stance on abor- spent a recent weekend can- Several women volunteers behalf. “Women are going to off a list that included young peo-
cratic voters, meaning that tion. Earlier this month, ac- vassing neighborhoods in tem- cited Mrs. Clinton’s efforts for lose a lot of ground in this ple, single mothers, small busi-
even losing the first two nomi- tress Lena Dunham of the HBO peratures so low that her ball- the Children’s Defense Fund in country and a lot of opportuni- ness owners, veterans and blue-
nating contests may not prove show “Girls” made a feminist point pen froze. “Luckily I had Cambridge, Mass., where she ties if the Republicans win collar workers—but not Hispanics
debilitating to her campaign. pitch on Mrs. Clinton’s behalf a felt-tip pen in my purse,” she worked after her graduation, this,” she said. “The stakes are or any other minority group.
On Tuesday, Mrs. Clinton to crowds in Iowa City and Des said. as part of her appeal. “She is very high.” —Beth Reinhard
Democrats Court Black

Voters in South Carolina
BY COLLEEN MCCAIN NELSON
COLUMBIA, S.C.—Hillary
Clinton and Bernie Sanders
spent Martin Luther King Jr.
Day courting African-American
voters in South Carolina, lay-
ing the groundwork for next
PATRICK T. FALLON/BLOOMBERG NEWS
month’s consequential primary

in the tightening Democratic
presidential campaign.
With the party’s two lead- BECAUSE SOMEDAY
ing candidates running nearly
even in the first two contests
in Iowa and New Hampshire,
both Mr. Sanders and Mrs.
I’ll have all the
Clinton are looking ahead to
South Carolina, the first vote
to feature a large bloc of Afri- Sen. Bernie Sanders speaking in Columbia, S.C. The event also
details ironed out.
can-Americans, who hold sig- drew rival candidates Hillary Clinton and Martin O’Malley.
nificant sway in the Demo-
cratic nominating battle. the Statehouse grounds, where been working to quickly build
They spent the past three the Confederate flag flew until out a network of staff and vol-
days in the state, looking to July. Last year’s mass shooting unteers in South Carolina, and
shore up support and boost at an African-American church he has said that the more mi-
their ground game for the in Charleston renewed the de- nority voters get to know him,
fourth Democratic contest bate not just about gun vio- the more they will like him.
on Feb. 27, following Nevada a lence, but about the Confeder- Both Mr. Sanders and Mrs. We can help you make that old 401(k) a part
week earlier. Iowa and New ate symbol’s presence on Clinton tailored their mes- of your complete retirement plan.
Hampshire both vote early in Statehouse grounds, and after sages to appeal to the largely
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the civil-rights leader’s vision Confederate flag overhead,” Sanders noted that Dr. King
for America. Just hours after she told the crowd assembled battled racism and also Every someday needs a plan.SM
their most combative debate outside the Capitol. “That flag wanted to combat income in-
yet, the two politicians— always belonged in a museum, equality, an issue that the Ver- Our rollover specialists can help you move your
joined by the party’s third not in a statehouse.” mont senator has made the old 401(k) to a Fidelity IRA.
candidate, former Maryland The Columbia event capped centerpiece of his presidential
Gov. Martin O’Malley—shared a long weekend that included campaign.
the stage again, temporarily the nationally televised de- “I wonder if Dr. King was
setting aside their critiques of bate, a Democratic Party din- with us today, what would he
one another to focus on Dr. ner, a fish fry, and an array of say about a nation in which
King’s message. other events that the candi- the top one-tenth of 1% own
Mrs. Clinton focused on the dates’ surrogates fanned out more wealth than the bottom
threat of gun violence, casting to attend. 90%,” Mr. Sanders said. “And
it as a civil-rights issue. The South Carolina could be an what would he say about a na- Fidelity.com/rollover
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A6 | Tuesday, January 19, 2016 THE WALL STREET JOURNAL.
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WORLD NEWS
Business Leaders Court Vatican Terrorism
Deaths
Corporate executives
seek to bridge divides
with church over
Rattle
ethics of capitalism Canada
BY FRANCIS X. ROCCA BY CAROLYN KING
AND PAUL VIEIRA
ROME—Global business
leaders sought common A school board in Quebec
ground with the Vatican on a City was reeling on Mon-
range of ethical issues at a day after six Canadians with
conference that ended here close ties to the provincial
Monday, the latest effort to capital’s board were among
improve relations strained by those killed in terror attacks
Pope Francis’ criticisms of in Burkina Faso.
global finance and capitalism. The tragedy and the death
At the two-day meeting or- of a Canadian in an attack in
VATICAN PRESS OFFICE/EUROPEAN PRESSPHOTO AGENCY
ganized by the Global Founda- Jakarta last week have intensi-

tion, an Australian nonprofit fied a focus in Canada on how
that promotes dialogue among the government is dealing
the business community, gov- with terrorism.
ernment and other civil soci- Since the fatal attacks in
ety institutions, participants Paris in November, Canadian
discussed issues such as how Prime Minister Justin Trudeau
to foster broader job opportu- and his Liberal government
nities for young people and have faced intense pressure
women and how to eradicate from opposition politicians to
modern slavery. rethink their campaign pledge
The conference was head- to remove six jet fighters from
lined by Cardinal George Pell, the U.S.-led mission in the
the Vatican’s finance chief. Middle East against Islamic
Cardinal Pell is one of the few Pope Francis greets IMF Managing Director Christine Lagarde on Monday in a handout from Vatican newspaper L’Osservatore Romano. State.
Vatican officials espousing The government is pre-
pro-business sympathies that roundtable, where he recalled munism than capitalism. In social teaching, but it comes cluding Unilever CEO Paul Pol- pared to do “everything we
stand in contrast to those of the pope’s comments lauding 1991, the anticommunist Pope sometimes at the expense of man, have praised the pope’s can” to fight terrorism, Mr.
Pope Francis, who has derided the “spirit of enterprise.” John Paul II gave qualified the entrepreneurial side,” said environmental message. Trudeau said Monday, adding
money as the “dung of the The Catholic Church has recognition of the virtues of Kishore Jayabalan, a former In 2013 and 2015, mining that his cabinet is drafting a
devil” and frequently excori- long had a conflicted relation- entrepreneurship, in what free Vatican staff member who executives came to the Vatican new strategy to reassure Ca-
ated the free-market system. ship with commerce, rooted in market enthusiasts hailed as now works for the Acton Insti- for two meetings focused on nadians and the country’s al-
“Market economics have the Gospel’s warnings against the most positive papal state- tute, a free-market-oriented criticisms of the sector’s social lies of its commitment.
brought unprecedented pros- the spiritual perils of wealth. ment on the subject to date. think tank. “He provides the and environmental impacts. “The fight against terrorism
perity and represent, despite Monks and nuns emulated Je- The end of the Cold War rhetoric and moral high The meetings were occasions across the world is essential,”
their many faults and deficien- sus by taking a vow of pov- freed the Vatican to pursue a ground for enemies of capital- for “learning to speak each said Mr. Trudeau. “We are
cies, an extraordinary human erty. But medieval Catholic critical line on capitalism. ism, for those who would take other’s language,” said the looking at different ways of
achievement,” Cardinal Pell theologians reinterpreted bib- Pope Benedict XVI, who, while us back to a feudal and back- Rev. Séamus Finn, who helped being engaged, in an effective
told the 50-odd attendees, lical injunctions against usury, still a cardinal, praised demo- ward-looking society.” organize the gatherings. way, to fight terrorism.”
among them Christine thus facilitating the emer- cratic socialism for its similar- Business has made several The Vatican’s office for jus- The Canadians killed in
Lagarde, managing director of gence of modern banking and ities to Catholic social teach- attempts to build relationships tice and peace, which orga- Burkina Faso’s capital Ouaga-
the International Monetary capitalism. ing, warned as pope against with Pope Francis’ Vatican, nized the mining meetings, dougou on Friday were among
Fund; Dominic Barton, manag- In modern times, a 19th- the “logic of profit.” with limited success. In the has limited credibility in the at least 30 people who
ing director of McKinsey & century encyclical by Pope Leo The 2013 election of Pope run-up to the pope’s environ- corporate world. died when al Qaeda-linked ex-
Co.; Mark Cutifani, CEO of An- XIII criticized the excesses of Francis, the first pope from mental encyclical last year, In 2011, in the wake of the tremists attacked two hotels, a
glo American PLC; and Robert the free market and affirmed the developing world, raised which called for reduced use financial crisis, it proposed coffee shop and a police sta-
Thomson, CEO of News Corp, the rights of workers to orga- tensions between the Vatican of fossil fuels in order to limit the establishment of a “world tion.
which owns The Wall Street nize, while also defending the and defenders of capitalism to global warming, Exxon sent a central bank” to regulate the The Canadian group was on
Journal. right to private property. unprecedented levels. top lobbyist to brief the Vati- “flow and system of monetary a humanitarian mission to
On Monday, Cardinal Pietro During the Cold War, the The pope’s “concern for the can on its views on the energy exchanges similar to the na- help build a school, said Erick
Parolin, the Vatican secretary Vatican was often more con- rights of workers is com- industry. tional central banks”—an idea Parent, the Quebec City school
of state, also addressed the cerned with denouncing completely in line with Catholic Other corporate figures, in- that drew little response. board’s secretary-general.
Don’t miss our

SPECIAL SECTION
in print on Wednesday 1/20
OUTLOOK 2016: WORLD ECONOMIC FORUM

OPPORTUNITIES AND UPHEAVALS IN THE COMING YEAR
What are the prospects for growth in 2016? As the World Economic
Forum gathers in Davos, our journalists explore the potential and
the pitfalls ahead, from poverty and geopolitical instability to the
promise of the tech revolution. It's the insight you need to keep in
control when the economic landscape changes.
Read our special section in tomorrow's paper
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THE WALL STREET JOURNAL. * * * * * Tuesday, January 19, 2016 | A9
WORLD NEWS
Election Upends China’s Slowdown Deepens

Power in Taiwan BY MARK MAGNIER
BEIJING—China recorded a
Weakening Foundation
China’s economy expanded at its slowest pace since 1990, hit by falling investment and industrial output,
BY JEREMY PAGE The KMT says all its assets pronounced deceleration in even as its retail sector has been steady.
AND JENNY W. HSU are legal and has promised to growth last year, affirming
be more transparent about that a multiyear slowdown is Growth in real GDP Annual change in:
TAIPEI—Taiwan’s Kuomint- them. Its leadership will meet biting the world’s second-larg- 14% 25%
ang once ruled China and re- Wednesday to discuss that and est economy harder and shows
mains one of the world’s rich- other planned overhauls. little sign of stopping. 12
est political parties, with All parties declare their as- The growth rate, released 20
declared assets of more than sets to the interior ministry, by the government Tuesday, 10 target
$760 million. whose latest report in 2015 moderated to 6.8% for the 15
But the party now faces a put the KMT’s wealth at fourth quarter and 6.9% for 8
Retail sales
battle for its political and fi- NT$25.6 billion ($760 mil- 2015. The annual pace was the
nancial future after Saturday’s lion)—more than all other par- weakest in a quarter century, 6 10 Fixed-asset
election cost it the presidency ties combined. and the quarterly level under- investment
4
and, for the first time since Ms. Tsai’s Democratic Pro- shot expectations, posting its
5 Industrial
fleeing the mainland in 1949, gressive Party, or DPP, accused lowest reading since the finan- 2 value
control of parliament. the KMT of blocking a bill cial crisis and signaling weak-
added
The country’s next leader, aimed at retrieving the assets. ening momentum. 0 0
Tsai Ing-wen, after winning Passing that bill will be a pri- Tuesday’s figures put a ’11 ’12 ’13 ’14 ’15
1995 2000 ’05 ’10 ’15
the presidential election in a ority now the DPP has a par- grade on a tumultuous year in
landslide, wants to strip the liamentary majority, Ms. Tsai’s which the slowdown’s impact Source: National Bureau of Statistics THE WALL STREET JOURNAL.
Kuomintang of many of its as- aides and advisers say. spilled over to global markets
sets, according to her aides KMT spokeswoman Lin Yi- and battered the government’s
and advisers. hua said the last DPP adminis- reputation for competent eco- 2014. Doubts have been raised that powered it for so long crease deficit spending this
The party’s precarious state tration, which held the presi- nomic management. about the reliability of China’s getting hit harder while ser- year to generate growth, even
is a challenge, too, for Beijing, dency from 2000 to 2008, Chinese leaders held an economic data, and the re- vices and household consump- if that tactic has limits. Higher
which sees Taiwan as its terri- found KMT assets to be legal. economic policy meeting Mon- ported rate for 2015 sparked tion power ahead. Service in- spending on infrastructure last
tory and has relied on the “I am in no position to say day with senior officials. renewed concern that growth dustries last year absorbed job year showed signs of kicking
Kuomintang, known as the whether this is a witch-hunt,” While state media projected a is slowing faster than the gov- losses in manufacturing. in, as investment levels grew
KMT or Nationalist Party, to she said. tone of determined optimism, ernment is saying. The trend toward greater faster after lending in Novem-
bring the island closer to the The brewing battle adds to President Xi Jinping also “China’s reported growth reliance on consumption ber and December increased.
mainland, even as popular a crisis facing the KMT after urged the officials “to stabilize rate for 2015 raises many rather than investment and in- China’s stock market gyra-
support for reunification has voters emphatically rejected short-term growth.” Premier questions rather than provid- dustry is one the government tions last year provided a
waned among Taiwanese. efforts by President Ma Ying- Li Keqiang talked of “increasing full reassurance about the has long said it wants to en- growth dividend in financial
Ms. Tsai’s aides and advis- jeou to forge closer ties with ing downward pressure” on economy’s true growth mo- courage. Mr. Wang, the statis- services, adding an estimated
ers said many KMT assets China since taking power in the economy, complicated by mentum,” said Eswar Prasad, tics chief, said that transition 1.5 percentage points in the
should belong to the country 2008. The KMT’s presidential slack global demand. Cornell University professor is expected to make progress first three quarters of the
as they were taken from Tai- candidate, Eric Chu, won 31% “The real economy basically and former head of the Inter- this year. year, according to economists.
wan’s colonial ruler, Japan, af- of the vote and resigned as hasn’t picked up very well,” national Monetary Fund’s But as growth sputters fur- Brokerage activity, however,
ter World War II, or accumu- party chairman on Monday. said Nomura economist Yang China division. ther and the government’s has been significantly lower.
lated when the KMT ruled —Eva Dou Zhao. “We’re going to have a Fears over slowing momen- ability to prop it up flags, Exports, which accounted
Taiwan as a dictatorship. contributed to this article. choppier sea ahead of us.” tum in China and Beijing’s economists and Chinese offi- for 34.9% of the economy in
With growing debt and too handling of the economy have cials expect more companies 2007 but only 22.6% as of
much housing and factory ca- combined with concerns over to get hit and layoffs to rise. 2014, according to the World
pacity, economists—and even plunging oil and commodity Guo Xiaogang, a delivery- Bank, aren’t likely to produce
Chinese officials—project a prices to pull down nervy man for an online store, said a kick, given slack demand
tougher year ahead. The stock global stock markets since the competition in Internet com- from developed economies.
markets have stumbled into start of 2016. merce has become so intense Debt, which economists
the new year, erasing gains Wang Baoan, the head of that he has fewer packages to said has continued to rise even
from an unsteady recovery the National Statistics Bureau, deliver—and a harder time as the economy slows, is limit-
that followed a summertime told reporters that China’s making a decent wage. ing Beijing’s room to maneu-
crash. And, economists said, economic data was “valid and “Of course I’m concerned,” ver.
the tools the government has reliable” and its methodology said the 32-year-old, wearing a “If the authorities engage in
OLIVIA HARRIS/REUTERS
used to revive growth—infra- “in line with global stan- red uniform and standing in the ‘extend and pretend’ game,
structure spending, easy credit dards.” Mr. Wang said that western Beijing. “If I change which we expect, this implies
and ramped-up exports—ap- economic growth last year met jobs, maybe I can afford to buy a lack of productive invest-
pear increasingly ineffective. the government’s target for more, but right now it’s not ment in China over the coming
The 2015 growth rate re- medium-to-high growth. really possible.” years,” said Commerzbank
ported by the government’s In the downturn, China’s With the gloomier outlook, economist Zhou Hao.
At center, Eric Chu, the presidential candidate of Taiwan’s ruling statistics bureau was down economy has diverged along Chinese officials have said the —Grace Zhu and Liyan Qi
Nationalist Party, bowed in conceding defeat Saturday in Taipei. from the 7.3% gain reported in two tracks, with the industries government is looking to in- contributed to this article.
A10 | Tuesday, January 19, 2016 * * THE WALL STREET JOURNAL.
WORLD NEWS
Iraqi Police Seek 3 Abducted Americans

Kidnapping highlights The company didn’t return
requests for comment.
weak security in capital; An employee for Sallyport
search focuses on Global Holdings, a Virginia-
based firm, said three people
Iran-backed militias working for a company to
which it is contracted to pro-
BY MATT BRADLEY vide security had been ab-
AND GHASSAN ADNAN ducted but didn’t specify the
company’s name.
BAGHDAD—Iraqi police Sallyport Global Holdings is
fanned out across a southern under contract with General
suburb of Baghdad on Monday Dynamics to provide security
in search of three Americans for its employees in Iraq.
that Iraqi authorities said The circumstances that led
were kidnapped by Iran- to the three Americans disap-
SABAH ARAR/AGENCE FRANCE-PRESSE/GETTY IMAGES

backed Shiite militias. pearing remained unclear late
The three are the first Monday. Iraqi media reports
Americans to be kidnapped in said the three were kidnapped
Iraq in several years, exposing while visiting the home of
the further weakening of their Iraqi interpreter.
Iraq’s formal security system A group of gunmen in Iraqi
since Islamic State seized military uniforms raided the
large parts of the country in home and seized the men at
2014. gunpoint, said the reports,
Iraqi military and police which couldn’t be indepen-
mostly buckled under the mili- dently verified.
tants’ rapid expansion, allow- Doura is a sprawling neigh-
ing irregular military forces borhood populated by Shiites,
and tribal fighters to fill a Sunnis and Christians. It expe-
gaping security vacuum. Iraqi forces on Monday inspected cars on the road leaving Doura, a southern Baghdad suburb where three Americans disappeared. rienced rampant violence and
Security in and around religiously motivated killings
Baghdad has fallen largely un- U.S. defense contractor that groups by the U.S. govern- identified two of the three and defense firm, according to during the heyday of Iraq’s
der the control of Shiite mili- provides training to Iraqi spe- ment. Militia leaders on Mon- people on Monday as Amro the official, adding that both sectarian conflict between
tia groups whose funding and cial forces. day denied any connection to Mohammed, an Egyptian- men are naturalized American 2005 and 2007.
direction come from Iran. Blame focused mainly on the abductions. American, and Wael al-Mah- citizens. In the end, al Qaeda fight-
Police set up checkpoints in Shiite militias active in The U.S. State Department dawy, an Iraqi-American. They The third person kidnapped ers dominated the neighbor-
the suburb of Doura and flew Doura’s al-Saha neighborhood, said Sunday that three Ameri- were kidnapped over the was Russel Furat, an Iraqi- hood for several years and
helicopters over the neighbor- where Iraqi officials said the cans were missing in Baghdad weekend from a private home American woman, an Iraqi po- displaced thousands of Shiite
hood in search of the three Americans were seized. The and said the U.S. was working in Doura, he said. lice official said. families. Tensions in the area
Americans, two of whom, a se- area is dominated by Iranian- with Iraqi authorities to locate The pair worked as military It wasn’t known whether only soothed in 2008 and
nior Iraqi military official backed militias, some of which them. trainers for General Dynamics, Ms. Furat works for General 2009 during the so-called
said, were employees for a are designated as terrorist An Iraqi military official a Virginia-based aerospace Dynamics. surge of American troops.
Saudi Arabia’s Efforts to Isolate Iran Face Resistance

BY ASA FITCH room to meddle in Arab af- mindful of the border it shares
AND MARGHERITA STANCATI fairs. They are also concerned with Iran and the risk of in-
that a thaw in Iran-U.S. rela- flaming tensions with a sizable
DUBAI—Saudi Arabia’s clos- tions as a result of last year’s minority Shiite population.
est allies have sided with Ri- nuclear deal means Washing- Saudi Arabia has little to
yadh in its diplomatic standoff ton is abandoning long-stand- lose in shutting down trade
with Iran, but the kingdom’s ing ties with the Gulf states, with Iran—the country ac-
attempts to assemble a forcing them to be self-reliant counts for a fraction of im-
broader anti-Tehran bloc are against an empowered Iran. ports and exports. But Iran is
exposing the limits of its influ- But Saudi Arabia’s effort to a more important trade part-
ence in the Muslim world. display diplomatic strength ner for others in the region,
Bahrain, a tiny island coun- against Iran risks exposing the and some are jockeying to be-
try connected to Saudi Arabia opposite. come a commercial hub of
by a causeway, and Sudan, “Saudi Arabia at a pretty sanctions-free trade with Iran.
which has sought Saudi finan- broad level is struggling to The U.A.E. exported $12 bil-
XINHUA/ZUMA PRESS
cial patronage, quickly cut all marshal support for its anti- lion of goods to Iran in 2013,
ties with Shiite Iran after the Iran coalition,” said Hani Sa- according to International
kingdom made the move in re- bra, the head of Middle East Monetary Fund figures, ac-
sponse to attacks on its diplo- practice at Eurasia Group. counting for 12% of all nonoil
matic facilities in the Islamic “What we’ve seen is an even exports.
Republic. more isolated Saudi Arabia.” Demonstrators in Tehran protested on Jan. 4 against Saudi Arabia after it executed a Shiite cleric. U.A.E. officials publicly
But, despite a recent flurry Since King Salman acceded have dismissed trade consider-
of Saudi diplomatic contacts, to the throne last year, Saudi Bab el-Mandab Strait. Pakistan cleric and activist sentenced suit first, later joined in cut- ations in their decision not to
many other allies resisted. Arabia has led a coalition of didn’t commit any troops. to death for disobedience to ting ties by a few small coun- sever ties with Iran. And in-
The difficulties underscore Sunni states fighting Iran-sup- Meanwhile, some countries in the monarchy. Iranian protest- tries, including Somalia and deed, the rhetoric between the
a wider challenge the new ported Houthi rebels in Ye- the antiterrorism coalition ers stormed the Saudi Em- Djibouti. Other Persian Gulf al- two governments has grown
Saudi King Salman, and his men, and announced a 34- gave a tepid response. Malay- bassy in Tehran and its con- lies didn’t fully sever relations. heated.
Deputy Crown Prince and son, member Muslim bloc to fight sia’s defense minister said his sulate in Mashhad setting The United Arab Emirates, While the U.A.E. hasn’t fol-
Mohammed Bin Salman, face terrorism last month that country hadn’t committed to parts of them on fire. Kuwait and Qatar withdrew lowed its bigger neighbor in
as the monarchy tries to as- didn’t include Iran. Yet, Saudi military involvement, while In- Iranian leaders condemned ambassadors from Tehran, lockstep, Foreign Minister
sert itself as a leader among Arabia has often struggled to donesia said it hadn’t decided the violence and promised to while Oman, which has long Sheikh Abdullah bin Zayed al-
Sunni-majority countries. swing support behind their whether to join. bring the perpetrators to jus- been close to Iran, didn’t Nahyan has left room for
The push comes as Riyadh initiatives. The latest flare-up with tice; Saudi Arabia nevertheless change its diplomatic rela- tougher diplomatic action.
and its Gulf allies fear that the Egypt has limited its in- Iran began on Jan. 2, when moved to cut diplomatic and tions. —Tamer El-Ghobashy
lifting of economic sanctions volvement in the Yemen cam- Saudi Arabia executed Nemer commercial ties on Jan. 3. Pakistan has tried to stay in Cairo
on Iran will allow it more paign mainly to guarding the al-Nemer, a prominent Shiite Sudan and Bahrain followed out of the diplomatic dispute, contributed to this article.
SYRIA sue a new path.”

The most significant test
ahead is Syria. Mr. Obama is
that Mr. Obama’s legacy on
Iran—and the longevity of his
diplomacy-first approach to
World
The man’s Sunday night ap-
pearance was the latest wrinkle
in a case that has raised fears
Continued from Page One

seeking a resolution to the
nearly five-year conflict
global challenges—depend
heavily on which party wins in Watch over Beijing’s influence in the for-
mer British colony, whose consti-
in this town for Iran,” said through negotiations that in- November. tution grants citizens freedom of
Aaron David Miller, a former se- volve Iran and Russia—allies of With that in mind, Mr. speech and other rights not
EBRAHIM NOROOZI/ASSOCIATED PRESS
nior State Department official Syrian President Bashar al- Obama, who has set keeping guaranteed to mainland Chinese.
in Republican and Democratic Assad—and Arab states that op- Democratic control of the White The employee, Gui Minhai, is
administrations who is now at pose his regime. House as another top goal, may SYRIA one of five people reported miss-
Washington’s Woodrow Wilson Those talks continue this think twice before “risking any- ing from Hong Kong’s Causeway
International Center for Schol- month, but divisions remain thing with Iran that is likely to
Islamic State Pushes Bay Books and its Mighty Cur-
ars. “The challenge that the U.S. over Mr. Assad’s future, and it pay very uncertain returns but To Oust Regime in City rent publishing affiliate, which
faces is how to deal with a ris- isn’t clear if Iran or Russia is will be incredibly controver- Islamic State fighters cap- sells books critical of China. Mr.
ing Iran in a failing Middle East prepared to pressure the re- sial,” said Mr. Miller, the former tured new ground from Assad Gui, who was last seen at his va-
amidst perceptions that the gime to agree to a cease-fire. State Department official. regime forces in the eastern Syr- cation house in Thailand in Octo-
United States is retreating.” Iran could be less likely to Along with Mr. Rezaian, the ian city of Deir Ezzour in the ber, appeared on China Central
In addition, Iran holds legis- shift its position after such Iranian President Hassan other two Americans trans- third day of an offensive in Television, where he said he re-
lative elections next month that high-profile dealings with the Rouhani in Tehran on Sunday. ported to Landstuhl Regional which hundreds have been killed turned to China in October to
could determine the future of U.S. because “a retreat in Syria Medical Center in Germany or abducted, according to an op- give himself up for a drunken-
new diplomatic strides before would look like a defeat” to week of 10 U.S. sailors after two were Saeed Abedini, a Christian position monitoring group. driving accident in 2003 in
Mr. Obama leaves office. them, said Dennis Ross, who small boats entered Iranian wa- pastor, and former U.S. Marine Islamic State already controls Ningbo that killed a young girl.
“The choice is even more on served as Mr. Obama’s top ad- ters. The sailors were released Amir Hekmati. most of the Syrian city and the A court handed Mr. Gui a
the Iranian side than on our viser on the Mideast during the unharmed after being held Student Matthew Trevithick province that is also called Deir two-year suspended sentence in
side as to whether or not they president’s first term. overnight. On Monday, the Pen- arrived in Boston on Sunday, Ezzour. Since Saturday, it has 2004 for the driving incident and
are going to continue to pursue “We should have low expec- tagon said their boats had gone his father, Paul Trevithick, said. pushed to drive the regime from barred him from leaving China,
more constructive relations tations about how much things off course due to a combination U.S. officials say Nosratollah its last foothold in the city. Xinhua reported.
with not just the United States could change in the near term,” of poor navigation, failed com- Khosravi-Roodsari, an Iranian- The U.K.-based Syrian Obser- —Isabella Steger
but the rest of the world,” a se- he said. munications equipment and a American, chose to stay in Iran, vatory for Human Rights said
nior administration official said. In the U.S. presidential pri- stalled engine. and declined to comment fur- the death toll had climbed to at MOROCCO
The new sanctions drew maries, some Republican candi- In the Democratic presiden- ther. least 135 people in Assad re-
swift condemnation from Iran’s dates have vowed to back out of tial debate on Sunday, Hillary Douglas Jehl, foreign editor gime-held areas by Sunday, in-
Belgian Tied to Paris
Foreign Ministry, which called the nuclear deal. The candi- Clinton, Mr. Obama’s former at the Post, said Mr. Rezaian cluding 50 government soldiers Attackers Arrested
them illegal and promised to dates welcomed the release of secretary of state, took credit traveled with his wife and and allied militiamen, and 42 Is- Moroccan authorities have ar-
ramp up development of its bal- the American prisoners from for helping achieve the nuclear mother, and declined to com- lamic State fighters. Syria’s state rested a Belgian member of Is-
listic missile program. Iran, but criticized the swap as deal but cautioned against too ment on whether Iranian au- news agency SANA, reported lamic State who was a close as-
The clash underscores how part of a pattern in Mr. Obama’s quickly advancing relations. thorities tried to hinder his that 300 civilians were killed in sociate of two of the men
difficult it may be for Mr. diplomacy. The critics, includ- “We’ve had one good day in wife’s departure. the fighting and called it a mas- responsible for November’s Paris
Obama to balance his openness ing Sen. Ted Cruz of Texas, over 36 years, and I think we Secretary of State John sacre. —Dana Ballout terror attacks, the Moroccan
to further engagement with the cited the U.S. release of five need more good days before we Kerry said the release had hit a government said on Monday.
need to check Iran’s aggression Taliban detainees in exchange move more rapidly toward any snag when, at the last minute, HONG KONG The Brussels prosecutor’s of-
in the region. for Sgt. Bowe Bergdahl from kind of normalization,” Mrs. Mr. Rezaian’s wife and mother fice identified the man, who was
On Sunday, Mr. Obama called Taliban captivity, and the re- Clinton said. weren’t on the plane, as the
Missing Bookseller arrested Friday, as Gelel Attar,
for continued cooperation. “En- turn of three jailed Cuban Her leading challenger, Ver- agreement specified. The air- Appears on State TV 26 years old. He was sentenced
gaging directly with the Iranian agents in exchange for the re- mont Sen. Bernie Sanders, was craft was held for a “period of A missing Hong Kong book- to five years in prison by a Bel-
government on a sustained ba- lease of Alan Gross and a U.S. less cautious. “What we’ve got time,” during which U.S. offi- store employee resurfaced on gian court last year for being
sis, for the first time in decades, intelligence official held in to do is move as aggressively as cials said they told the Iranians Chinese state television, where part of a terrorist recruiting
has created a unique opportu- Cuba. we can to normalize relations that “it needed to be done.” he tearfully confessed to a group along with Abdelhamid
nity—a window—to try to re- Republicans also were criti- with Iran,” he said. —William Wilkes in drunken-driving accident and Abaaoud, the alleged ringleader
solve important issues,” he said. cal of the administration’s re- White House officials are in- Landstuhl, Germany said he had voluntarily turned of the Paris attacks, and Chakib
“We have a rare chance to pur- sponse to Iran’s seizure last creasingly vocal in their view contributed to this article. himself in to Chinese authorities. Akrouh. —Matthew Dalton
THE WALL STREET JOURNAL. NY Tuesday, January 19, 2016 | A11
Look North SM
FROM PAGE ONE
BUGS initially said the 2013 software

wasn’t vulnerable to the bug,
but after discussions with the
Journal it acknowledged that
rity researchers in the past:
None had remote administra-
tion settings enabled by de-
fault, and none was easily ac-
Continued from Page One users should update to newer cessible over the Internet by
alerted or neglect to apply the software to protect from the openings that hackers regu-
patch. Hackers exploit any hack. The company said all larly probe.
weak link. new routers are now shipping The Journal’s tests didn’t
In the case of the routers, to stores with the later soft- look for new vulnerabilities.
Allegro said it couldn’t apply ware. Instead, they focused on
the patch, because it doesn’t known problems, to highlight
have access to the devices. The weaknesses in the security
company urges manufacturers No notification chain. The Misfortune Cookie
to use the latest version of its Users can update device flaw was more prevalent in
ILANA PANICH-LINSMAN FOR THE WALL STREET JOURNAL (PHOTOS)

software but can’t require software to address such vul- routers sold abroad than in
them to do so. “Nobody does nerabilities, but most of the the U.S., researchers said.
that,” said Loren Shade, vice devices tested by the Journal Mr. Tal, the researcher
president of marketing. didn’t notify owners that new who found the bug, said he
“We’ve thought about it, but software was available. Two became interested in studying
it’s kind of hard to enforce.” routers—one made by Belkin Allegro’s software when he
To shed light on the prob- and one by Netgear Inc.—in- realized how widely it was
lem, The Wall Street Journal correctly told users there was used—and that the most-
commissioned a security reno update. common version was from
searcher to test 20 popular In- In a statement, Netgear said 2002. He and fellow research-
ternet routers purchased new new routers might arrive with ers saw it on more than 200
in the second half of 2015. old versions of firmware be- models from dozens of router
Ten arrived with known, cause it can take months for a manufacturers but didn’t un-
documented security weak- router to get from a factory to derstand why it was so preva-
nesses. Tod Beardsley, a re- a consumer. The router that lent.
searcher at security company incorrectly said an update They eventually linked the
Rapid7 Inc. who conducted the wasn’t available didn’t work software to MediaTek Inc.,
tests, said the vulnerable rout- Tod Beardsley, a researcher at security company Rapid7, found many new routers had outdated software. “as expected,” Netgear said. which had supplied chips for
ers had outdated “firmware,” Follow-up tests after the Jour- the vulnerable routers. Medi-
the programs that run a de- nal contacted Netgear showed aTek said the faulty software
vice. Four others had old firm- Weak Link the router correctly indicated had been incorporated into the
ware that had subsequent up- Security flaws in consumer routers, which people rarely update, highlight the difficulty an update was available. chip by a company it acquired
dates that Mr. Beardsley said in fixing software that runs devices already in use. Belkin said its router and that maintenance fell
could contain undocumented couldn’t find the update be- through the cracks until 2014,
security problems. cause the updated software when MediaTek learned about
10
101001011011
010010110111
Half of the group of 20 01010101011
0 10101010111
1 hadn’t been properly loaded the Misfortune Cookie flaw.
didn’t let users easily check 1101101
01101 10100 on its computers. The com- “Once we were alerted, we
for new software during the 1100111000
001110000 pany made the software avail- acted quickly to minimize im-
standard setup process. In- 0010110001
101100011 able after being contacted by pact and remedy the issue for
stead, users had to search on 01100101 the Journal. customers,” by working with
the Web or run optional pro- Another router, made by D- router makers to update the
grams. In addition, two rout- Link Systems Inc., directed firmware, a MediaTek spokes-
ers incorrectly told users that U.S. users to download a ver- man said.
updated software wasn’t avail- sion of the software that still Huawei Technologies Co.,
able, when in fact it was, and contained a bug with the high- for example, published a fix
Component makers Router makers Home users Hackers
one directed users to down- est severity level in the Na- for its two routers affected by
Can pick up flaws from Can also insert flaws. Might not be alerted to Can take control of router
load software that had a se- software makers or Bugs could be revealed fix by router maker or to steal data sent over the
tional Institute of Standards Misfortune Cookie in Decem-
vere, documented security generate their own. May between manufacture Internet-service provider, Internet, sometimes even if and Technology’s National Vul- ber 2014, soon after being
flaw. not tell router makers and sale. Don't devote or might not know how encrypted, or use router in nerability Database. The bug contacted by the researchers.
The Journal’s findings and can't force fixes. resources to old routers. to update the device. denial-of-service attacks. had been fixed by D-Link in In a statement, Huawei said it
dovetail with those of Shahar May, but the patch was made “expresses appreciation” to
Tal, a researcher formerly at Sources: interviews with security experts; reviews of security research THE WALL STREET JOURNAL. available only on international the researchers for disclosing
Check Point Software Technol- D-Link sites and an obscure In- the bug and urged people to
ogies Ltd. who helped find the dent in smartphones and the A Google spokeswoman said jacked routers to siphon off ternet forum. download the latest firmware
Allegro bug, dubbed “Misfor- growing market for Internet- the company is working with bank-account details from Pol- After being contacted by from the company’s website.
tune Cookie” because it allows connected computers in every- manufacturers and carriers to ish consumers. Researchers in the Journal, D-Link said in De- TP-Link Technologies Co.
hackers to attack the router thing from printers to televi- distribute updates more Spain last year tested 22 rout- cember that the company initially had 23 affected mod-
using malicious Web cookies. sion sets. quickly. Google also said it has ers and found that each had at hadn’t put the fixed firmware els, according to the research-
In scans over the Internet Security researchers re- made efforts to keep harmful least one security vulnerabil- on its U.S. site because it had ers. More than a year after the
this spring, Mr. Tal found that cently showed how they could apps, which hackers typically ity. been conducting a “validation bug was publicized, the com-
79% of the routers that ini- hijack an email account use to exploit a weakness in a Researchers at Internet- test” to confirm “that the pany’s support site showed
tially contained Misfortune through a refrigerator by at- device, off its Play Store. It technology company Akamai firmware is succeeding.” The that three of the models had
Cookie were still vulnerable, tacking the link it used to dis- said fewer than 1% of Android Technologies Inc. said crimi- update was put on the U.S. site updates to address the vulner-
five months after the problem play the owner’s Google calen- devices have installed a poten- nals also increasingly offer to in early January. ability. TP-Link said seven ad-
had been disclosed in public dar on the door’s touch screen. tially harmful app. infiltrate routers and use “I was surprised at the level ditional models were sched-
announcements and to the de- Other researchers have dem- Software on Apple Inc. de- them to overwhelm targeted of problems users would have uled to be updated before
vice makers. onstrated they can change the vices is more commonly up-to- websites for a fee. Attack in- just updating” the software, early February, but that other
Router makers are cutting settings on Internet-connected date, because Apple manufac- stigators may want to gain an said Mr. Beardsley, the Rapid7 models were considered “end
corners by not checking the medical devices, managed re- tures iPhones and iPads and advantage in online games, researcher who conducted the of life” and wouldn’t be up-
security of their products and motely by nurses and doctors, controls more of the update punish companies for bad ser- Journal’s tests. dated. The company is “priori-
failing to make efforts to keep that infuse medicines into pa- process. vice, camouflage another at- The tests found other secu- tizing support for newer prod-
customers informed of up- tients. tack or extort money, said Eric rity weaknesses. All but two of ucts, of which a larger portion
dates, he said. They “aren’t The Federal Trade Commis- Kobrin, Akamai’s director of the 20 routers tested used in- are likely to still be in ser-
paying the price for bad secu- sion last year warned that Automatic updates information security. Such secure, widely known pass- vice,” a company spokesman
rity,” Mr. Tal said. “They’re companies entering these mar- Microsoft Corp. in late router-type attacks were rare words by default and didn’t said.
trying to cut prices by a dollar kets “may not have experi- 2004 activated automatic up- a year ago but in 2015 ac- require users to change them. But security pros say peo-
and win that contract from ence” with security. For users, dates by default on Windows counted for 10% to 20% of de- All 20 used network settings ple often use these types of
service provider X. Security the commission said, “It may machines. Some software, such nial-of-service attacks, he that security researchers say devices for a long time. Rout-
isn’t on their mind.” be difficult or impossible to as Google’s Chrome Web said. can be easily guessed by hackers “are things you just set up
Router makers contacted by update the software or apply a browser, updates itself every Mr. Kobrin said a group ers. and don’t think about,” said
the Journal said security was patch.” few weeks. called Lizard Squad used The routers tested by Mr. Mr. Tal, the researcher. “They
important to them, and most Alphabet Inc.’s Google regu- Such efforts help more-se- routers and other home de- Beardsley had fixed two prob- stay out there for years and
said they had plans to improve larly updates its Android mo- cure software spread faster. vices to direct malicious traf- lems regularly cited by secu- years until they break.”
how users are notified of new bile-operating system, which Mozilla Corp. said more than fic that knocked gaming net-
software—which often de- runs roughly three-fourths of 70% of users of its Firefox Web works for Microsoft’s Xbox
pends on a user noticing an the world’s smartphones, to browser are on the latest ver- and Sony Corp.’s PlayStation
update on the router’s website. patch security holes. But it sion within 20 days of its re- offline for hours on Christ-
But several also said routers generally relies on device mak- lease; since 2013, Firefox has mas Day 2014.
more than a couple of years ers and telecom carriers to updated on its own when the None of the routers tested
old are less likely to get fixed. distribute the new software. user restarts. Before that, by the Journal was vulnerable
Home routers are an easy Device makers don’t always when the browser prompted to these types of attacks out of
target because manufacturers distribute it, particularly for users to upgrade every few the box, with default settings
compete largely on price, for cheaper phones or those more months, it took more than a in place. The Journal’s tests
devices that typically sell for than a year old. year to get that many users on found at least one flaw that
less than $100. Customers ac- University of Cambridge re- the newest software. has been used by hackers.
quire the routers either from searchers in October said As security improves on “The Moon” worm was docu-
retailers or from Internet-ser- more than 85% of 20,000 An- personal computers, hackers mented spreading among Link-
vice providers. Once routers droid devices they studied had seek other ways into networks. sys routers in 2014. A new
are sold, manufacturers have at least one of 11 known criti- Routers make an inviting tar- Linksys E1200 N300 router
little incentive to update them cal vulnerabilities, largely be- get. purchased in July 2015 and
to improve security. Routers cause of “inaction by some Once in control of a router, tested by the Journal shipped
can remain in use for years af- manufacturers and network hackers can access almost any- with software from 2013 that
ter what manufacturers term operators.” That could allow a thing a user sends over the In- still had the vulnerability the Is Your Home Router Vulnerable to Hackers?
their “end of life,” meaning hacker to take control of a ternet, sometimes even if it is worm exploited. The Journal commissioned security tests of 20 new popular
they no longer issue updates. phone, usually through a mali- encrypted. In one incident re- Belkin International Inc., wireless routers. See complete results at WSJ.com/PageOne.
The same problem is evi- cious app. ported in 2014, hackers hi- which owns the Linksys brand,
CARS to the World Bank, and busi-

nesses struggle to cope with
inadequate infrastructure.
India has 97 billionaires,
Other deterrents include
taxes of up to 140% on im-
ported vehicles, concerns
about after-sales service, the
can now “be driven in a traf-
fic jam or with a hole on the
street,” and at extreme tem-
peratures like those encoun-
such a powerful vehicle on
India’s roads, Mr. Talwar
said.
In Kolkata, Arijit Saha says
the Kolkata group is Devansh
Modi, 13. He brought three
cars—his father’s—to the re-
cent Thursday night outing.
Continued from Page One more than Russia and the difficulty of finding spare tered in India, something that that narrow lanes and pot- Chauffeurs drove the Bent-
department store Harrods and third-highest after the U.S. parts and a general lack of he says would have been dif- holes around his house mean ley Continental GT convert-
others, accelerated to about and China, according to the road safety, Mr. Majeed said. ficult for the cars’ engines 25 he can’t keep his red Jaguar ible and two Ferraris, an F
60 miles an hour on an over- China-based publishing Ferrari SpA, which opened years ago. Temperatures in XFR at home. Instead, he Type V8 and a 458 Spider
pass in his burnt-orange, group Hurun Report, which a new showroom in Novem- Delhi often exceed 110 de- parks it in an empty lot off with Devansh in the passen-
open-top Jaguar F-Type V6s, compiles a global rich list. ber on the side of a potholed grees Fahrenheit in the hot an unpaved road, where the ger seat.
weaving around slower-mov- And there are supercar clubs road in Delhi, says it is fully season. $75,000 car shares space with “My main passion is for
ing trucks. in Mumbai, Bangalore, Hyder- Paritosh Gupta, founder of a bicycle rickshaw and a speed,” said Devansh, who
“It’s an obstacle course,” abad, Chandigarh and New New Delhi’s CannonBall Club, group of homeless people. hopes to become a Formula
Mr. Lohia said as he slowed to Delhi.
India has 97 which limits membership to “I keep it covered so no One racer one day. For now
a crawl and maneuvered Auto-industry analysts es- billionaires, the owners of cars with at least one knows what kind of car it he is content to ride along.
around a mound of sand left in timate that between 100 to 400-horsepower engines, is,” said Mr. Saha, a 28-year- “In the passenger’s seat you
the middle of the street by a 125 super luxury cars—those
third-highest after says some only own them to old iron trader. don’t have to look out on the
construction crew. costing over $60,000, with the U.S. and China. park in the driveway to im- Along with some others in roads and keep an eye on
Revving his engine at a engines capable of delivering press guests at parties. the Kolkata club, he plans to traffic. You can relax and en-
stoplight, Mr. Lohia said, more than 400 horsepower— For those without available take his Jaguar to a drag- joy the drive.”
“You can say about Kolkata, are sold in India annually, in equipped to solve drivers’ driveways, finding a place to racing contest set for Febru- By the time Devansh is old
it’s a developing city, but part because the roads are in problems. A team of flying store these expensive cars ary. The location: an air enough to get behind the
what Britishers or the Ameri- such poor condition, although car doctors, on standby in can be another challenge. strip in the southwest of the wheel, Kolkata roads might
cans think, that it’s still in the market for them has the United Arab Emirates, Kabir Talwar, 36, says he city. be better, said Mr. Agarwal,
that backward zone where grown between 20%-25% in can be in India keeps his yellow Lamborghini “One thing that everyone the club founder.
the Britishers left it, it’s not.” the past two or three years. within four hours in case of Gallardo 560 parked at the wants to do is put their hard- “Five years back, there
Mr. Lohia and the other “The infrastructure is still an emergency, said Enrico dealership in New Delhi. “I ware on a runway and see were hardly any super-
club members live in a coun- not there,” says Abdul Ma- Galliera, a Ferrari senior vice haven’t told my parents” how fast it can go,” said Ra- cars here, they were just a
try where hundreds of mil- jeed, a partner and auto ana- president. about the car, he said. His fa- hul Mishra, organizer of the thought,” Mr. Agarwal said.
lions of citizens get by on lyst at Pricewaterhouse in In- Mr. Galliera said the Italian ther, with whom he lives, three-day event. “Now people are getting used
less than $2 a day, according dia. sports-car maker’s vehicles wouldn’t want him to have The youngest member of to them.”
OPINION
Normalizing Iran BOOKSHELF | By George Melloan
In Syria,
Bashar Assad
is trying to
as a threat to vital American
interests is increasingly dis-
connected from reality,” Mr.
the liberal aspirations of peo-
ple everywhere, especially if
they live in anti-American dic-
“The equating of Iran with
terror today is simplistic,” he
wrote. After the election, he
Vast Right-Wing
bring his ene-
mies to heel
by blocking
humanitarian
Kinzer writes. “Events of the
past week may slowly begin to
erode the impulse that leads
Americans to believe patrio-
tatorships.
Today’s liberal foreign pol-
icy, to adapt Churchill, is ap-
peasement wrapped in realism
ran for his life from the terror
of the same street militia that
had murdered Agha-Soltan.
Now we’re supposed to be-
Conspiracy 2.0
GLOBAL
VIEW convoys to
desperate ci-
tism requires us to hate Iran.”
What a weird thought. My
inside moral equivalency.
When it comes to Iran policy,
lieve that the change Mr. Co-
hen and others had hoped for
Dark Money
By Bret
vilians living own patriotism has never been that means believing that we has finally arrived. The proof, By Jane Mayer
Stephens
in besieged touched one way or another by have sinned at least as much supposedly, is that the regime (Doubleday, 449 pages, $29.95)
J
towns. The my views of Iran. Nor do I hate against the Iranians as they has so far kept to its nuclear
policy is called “starve or Iran—if by “Iran” one means have sinned against us; that promises (in exchange for a ane Mayer, a New Yorker magazine staff writer and
kneel,” and it is openly sup- the millions of people who our national-security interests $100 billion windfall), that it former Washington reporter for this newspaper,
ported by Hezbollah and tac- require us to come to terms swiftly released U.S. sailors introduces “Dark Money: The Hidden History of the
itly by Iran, which has de- with the Iranians; and that the (after scoring a small propa- Billionaires Behind the Rise of the Radical Right” by
ployed its elite Quds Force to Why are liberals best way to allay the suspi- ganda coup), and that it let comparing current-day America to the Gilded Age of the
aid Mr. Assad’s war effort. cions—and, over time, dimin- the other hostages go (though 1890s and bemoaning the ways in which rich people
So what better time for campaigning to make ish the influence—of Iranian only after very nearly taking today are trying to “remake America” to advance their
right-thinking liberals to ask: this most illiberal hard-liners is by engaging the the wife and mother of one of interests. Inevitably, she quotes New York Times
“Is Iran really so evil?” moderates ever more closely those hostages in his turn, columnist Paul Krugman: “We are on the road not to just
That’s the title of a reveal- regime acceptable? and demonstrating ever- and then after an additional a highly unequal society but a society of an oligarchy. A
ing essay in Politico by Ste- greater diplomatic flexibility. $1.7 billion reward from the society of inherited wealth.”
phen Kinzer, a former New That’s a neat theory, U.S.). That claim may have a familiar ring. Populists have
York Times reporter now at marched alongside Neda Agha- proved wrong by experience Are these signs of a new- been deploring the power of the rich since the birth of
Brown University. “The de- Soltan when she was gunned at every turn. The Carter ad- and-improved regime? Or the republic. In 1907, Teddy
monization of Iran is arguably down by regime thugs in the ministration hailed the Aya- merely one that is again being Roosevelt railed at
the most bizarre and self-de- 2009 Green Revolution, or the tollah Khomeini as “a saint.” given good reasons to believe “malefactors of great
feating of all U.S. foreign poli- fellow travelers of Hashem Our embassy was seized. Ron- that it can always extract a wealth.” His fifth cousin,
cies,” Mr. Kinzer begins. Shaabani, the Arab-Iranian ald Reagan sent Khomeini a bribe for its bad behavior? The Franklin, laced his 1933
“Americans view Iran not sim- poet executed two years ago birthday cake, along with se- notion of moral hazard, funda- inaugural speech with a
ply as a country with interests for “waging war on God,” or cret arms, to facilitate the re- mental to economics, has a for- promise to drive the “money
that sometimes conflict with the thousands of candidates lease of hostages in Lebanon. eign-policy dimension, too. Any changers” out of whatever
ours but as a relentless font of who are routinely barred from A few hostages were released, country that believes it will temples they occupied. The
evil.” running for Parliament for be- while others were taken in never be made to pay the price formula works well.
Mr. Kinzer’s essay was pub- ing insufficiently loyal to the their place. The world wel- for the risks it takes will take Ms. Mayer is highly selective
lished Sunday, as sanctions Supreme Leader. comed the election of “mod- ever-greater risks. It’s bad about which super-wealthy
were lifted on Tehran and This is the Iran that liberals erate” President Mohammad enough when the country in dabblers in politics she wants
four of America’s hostages like Mr. Kinzer ought to sup- Khatami in 1997. Iran’s illicit question is Greece. This is Iran. to expel. Warren Buffett, whose
came home after lengthy im- port, not the theocratic usurp- nuclear facilities were ex- Iran will become a “nor- $62 billion fortune ranks sec-
prisonments. The Obama ad- ers who claim to speak in posed during his second term. mal” country only when it ond only to that of Bill Gates
ministration publicly insists Iran’s name while stepping on In 2009, on the eve of ceases to be an Islamic Re- ($76 billion), is not one of her targets.
that the nuclear deal does not Iranian necks. But we are long presidential elections, the public. In the meantime, the Rather she quotes him in support of her thesis, to the
mean the U.S. should take a past the day when a liberal U.S. New York Times’s Roger Co- only question is how far we effect that the rich are winning the class war. Tom
benign view of Iran, but the foreign policy meant shaping hen celebrated “the vibrancy are prepared to abase our- Steyer, the West Coast hedge-fund billionaire environ-
more enthusiastic backers of our interests around our val- of a changing, highly edu- selves in our quest to normal- mentalist, gets a bye as well. So does former Google CEO
the agreement think other- ues—not the other way cated society” that he had ize it. Eric Schmidt ($11 billion), a big campaign contributor to
wise. “Our perception of Iran around—much less supporting found on his visits to Tehran. Write bstephens@wsj.com. Barack Obama, and Steven Spielberg, who has generously
shared from his $3 billion nest egg to aid the goals of Bill
and Hillary Clinton. A host of think tanks and political
Hillary’s Sisterhood With Planned Parenthood websites depend on liberal deep pockets, but their donors
do not figure in “Dark Money.” Politically active, left-of-
center oligarchs are apparently wonderful people, not
Once upon a ton’s formula is safe, legal, un- The pro-choice community notified before she has an dangerous ones.
time, in the limited—and federally subsi- also includes those who sup- abortion. It has even opposed Ms. Mayer mainly dislikes foes of big government. Her
good old days dized. We saw this new Hillary port abortion rights but do not efforts to prevent an abortion list of the rich and dangerous begins with figures whose
of the first Clinton at a Planned Parent- believe either Planned Parent- in a case where the fetus is a heyday has passed, such as Richard Mellon Scaife and
Clinton presi- hood rally in New Hampshire hood or abortion should be girl and the mom or dad pre- John M. Olin. For decades, their philanthropies supported
dency, Bill this month, where she said she subsidized with tax dollars. fers a boy. conservative journals, scholars and think tanks, much as
Clinton turned favored “safe and legal abor- It’s also a big shift from last In fairness, Mrs. Clinton is the Bradley Foundation does today, another organization
MAIN
his back on tion” and denounced the Hyde July, when Mrs. Clinton re- following a trail blazed by Ba- that earns her contempt. But most of “Dark Money” is
STREET
his wife. He Amendment, which prohibits peated her safe, legal and rare rack Obama, an absolutist aimed at just two people, Charles and David Koch. The
By William
did so after federal funding for abortion. from the get-go. As an Illinois brothers, tied for fifth on the Forbes list with $41 billion
McGurn
her crash-and- “I will always defend state senator, he famously
burn on Hil- Planned Parenthood and I will The endorsement voted against the Born Alive
laryCare helped usher in the say consistently and proudly, Infant Protection Act. As presi- The Kochs host public-policy seminars, fund
first Republican House in 40 Planned Parenthood should be of the nation’s largest dent, he made clear he would political groups and back candidates. Are
years. Mr. Clinton got the mes- funded, supported and pro- abortion provider rather have the federal govern-
sage and went on to embrace tected, not undermined, mis- ment shut down than agree to they really such a danger to the republic?
welfare reform, sign a cut in represented and demonized,” didn’t come free. a GOP proposal to redirect
the capital-gains tax, and even Mrs. Clinton said. In return, Planned Parenthood’s funding
declare that “the era of big Planned Parenthood rewarded to community health organiza- apiece, are most notably backers of the Cato Institute, a
Government is over.” her with the first presidential formula to the New Hampshire tions that do not perform Washington free-market think tank. They also host
Now his wife is returning primary endorsement in its Union Leader and said she abortions. public-policy seminars, fund political groups and back
the favor. Today Hillary Clin- 100-year history. found the Planned Parenthood In any case here we are. candidates either directly or by way of the Koch
ton is running hard against the Amy Chozick of the New videos “disturbing.” But When Carly Fiorina brought up Industries political action committee. Ms. Mayer argues
agenda that defined her hus- York Times recently described plainly not so disturbing that the Planned Parenthood tapes that they and their “ultra-wealthy allies on the right”
band’s presidency. And not the relationship this way: “the she would let it get in the way at the second Republican de- have become the “single most effective special interest
only his economics. Clinton campaign has func- of the $20 million Planned Par- bate in mid-September, it was group in the country.” The Kochs might answer, “We
This campaign she has cast tioned almost as a marketing enthood will spend this elec- news for weeks. In the first Re- should be so lucky.”
aside her husband’s formula on arm for Planned Parenthood.” tion cycle. publican debate, Megyn Kelly Ms. Mayer’s writes well, as befits any member of the
abortion—“safe, legal and Remember, this is an organiza- It’s hard to overstate how of Fox News asked Gov. Scott team that produces the New Yorker’s highly readable
rare”—that she herself ran on tion that reports performing extreme Mrs. Clinton’s new po- Walker about his support for a prose. Her explorations of the family histories of the
in the past. Gone is the moder- 323,999 abortions and taking in sition is. Polls consistently Wisconsin anti-abortion law Kochs and their philosophical allies in the Scaife-Mellon
ating nuance of yesteryear: re- $553.7 million in subsidies from show that while most Ameri- that has no exceptions for clan are detailed and satisfying to the human thirst for
ducing the number of abor- Uncle Sam in fiscal year cans do not want to outlaw cases of rape, incest or to save juicy tidbits. We learn in intimate detail, complete with
tions, finding “common 2014-15. Though these tax dol- abortion, they do want limits. the life of the mother. “Would psychological analysis, of the family feud that split the
ground” with pro-lifers, even, lars are not earmarked for abor- This is why Democrats like to you really let a mother die Koch brothers into two warring camps, with Charles and
in her first campaign for the tion, money is fungible. deny they are for abortion on rather than have an abortion?” David on one side and Bill and Freddie on the other.
Senate in 2000, how she would It’s a curious reversal. For demand—Nancy Pelosi just she asked. But some readers might grow weary of Ms. Mayer’s
be OK with a limit on partial- one thing, Mrs. Clinton’s shift made this incredible claim to a Fair enough. But abortion breathless style, which suggests that every paragraph
birth or late-term abortions so comes at a moment when even Roll Call reporter—even as has gone largely unmentioned unmasks some secret of the giant right-wing conspiracy.
long as it didn’t threaten the some pro-choice advocates ad- they fight any proposed rein the Democratic debates. Is She even claims that Charles Koch as a child once said
life of the mother. mit to queasiness over Planned striction. there no debate moderator that his fair share of a treat was “all of it,” which of
The new Mrs. Clinton has Parenthood after undercover Planned Parenthood fights who might ask Mrs. Clinton to course was a tip-off of his later acquisitiveness. She
moved to the absolutist posi- videos were released last year them all. It fights restrictions explain why she’s dropped associates the brothers’ father, Fred Koch, with Hitler and
tion of the nation’s largest showing its officials sipping on partial-birth abortions. It “rare” in favor of taxpayer-fi- Stalin. He built oil refineries in the Soviet Union and
abortion provider, Planned wine as they chat about prices fights consent laws requiring nanced abortion on demand? Germany in the early 1930s. She describes economics sem-
Parenthood. Today Mrs. Clin- for, say, an intact fetal heart. that a minor’s mom or dad be Write to McGurn@wsj.com. inars for federal judges in Key Largo, Fla., sponsored by
the Olin Foundation years ago, as a combination of “Mao-
ist cultural reeducation camps and Club Med.” She can’t
THE #1 NEW YORK TIMES BESTSELLER seem to account for the fact that Ruth Bader Ginsburg and
other impeccably non-conservative jurists attended them.
Ms. Mayer might herself benefit from an economics
course. She writes that Richard Nixon imposed economic
controls on oil and gas in 1971 to “address the energy
crisis.” The Nixon price controls helped to cause the
energy crisis. She chides the Kochs for opposing President
Obama, noting that their fortunes have tripled since he
came to power. Ms. Mayer doesn’t seem to understand
that the fortunes of wealthy people on both left and right
were ballooned mainly by the asset inflation engineered by
the Federal Reserve. Small savers have been the victims.
A JOHN COREY NOVEL Authors who argue that rich people can buy elections
don’t get much support from history. The “oligarchs”
behind Mitt Romney are still smarting from his defeat. In
the 1930s, business titans could not buy victory for the
anti-New Deal candidates who ran against Roosevelt.
More than a century ago, during the Gilded Age, Congress
managed to pass the Sherman Antitrust Act, to the
sorrow of John D. Rockefeller and other one-percenters.
It can be argued that the cynicism behind the politics-
for-sale claim, even when displayed by a talented writer
like Ms. Mayer, reflects a distrust of the American
democratic system—as if “the people” are commodities
to be purchased and not autonomous beings who can
think for themselves. The cynicism also denigrates the
work of activists and scholars who join up with Cato, the
Manhattan Institute, Heritage, Brookings, Hoover, the
Sierra Club, the World Wildlife Foundation, Common
NOW IN PAPERBACK Cause—or whatever organization one might choose—
because they believe in what those bodies stand for, not
because they are the mindless slaves of some rich donor.
Also available in audio and ebook NelsonDeMille.net
Mr. Melloan, a former columnist and deputy editor of
the Journal editorial page, is writing a book on the Great
Depression to be published by Simon & Schuster.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Iran’s Hostage Triumph Islamist Terror, PC and Protecting Innocents
N
ow we know that Washington Post haps he’ll be held for some future ransom. Dorothy Rabinowitz is correct in I think Mayor Kenney should be
correspondent Jason Rezaian and The Obama Administration also agreed to “Denying the Obvious About Islamist commended.
Terror” (op-ed, Jan. 12). Given the HESHAM A. HASSABALLA
three other Americans were hostages drop the names of 14 Iranian nationals from slaughter of 9/11 and other terror at- Chicago
held by Iran in return for U.S. an Interpol watch list. Most tacks by Muslim savages, the Ameri-
concessions, in case there The U.S. pays a steep notable is the CEO of Mahan can people have, by and large, shown Philadelphia Police Commissioner
was any doubt. And on Satur- ransom for the release Air, an Iranian carrier sanc- the beauty I know they have by reject- Richard Ross Jr. was doubtless under
day we learned the ransom tioned for transporting mem- ing the calls by some to demonize all considerable political pressure to
price: $100 billion as part of of four innocents. bers of Iran’s Revolutionary Muslims. speak “correctly” about the recent
the completed nuclear deal Guards that is suspected of The reason that Philadelphia shooting of a policeman. Instead, he
and a prisoner swap of Irani- transferring arms to Bashar Mayor Jim Kenney—and I applaud spoke the plain truth. We need more
ans who violated U.S. laws. Iran’s Revolution- Assad’s regime. him for it—had to insist that the al- leaders like him.
ary Guards Corps should call this Operation The prisoner swap helps to solve the mystery leged actions of shooter Edward Ar- DAN MCGUIRE
cher had nothing to do with Islam or Syracuse, N.Y.
Clean Sweep. of the Obama Administration’s December flip-
its teachings is because, sadly, there
The timing of Iran’s Saturday release of the flop on new sanctions against Tehran’s ballistic- are too many people who cannot dif- The people Ms. Rabinowitz is talk-
Americans is no accident. This was also imple- missile program. The mullahs have twice tested ferentiate between criminals in the ing about, who continue to lecture us
mentation day for the nuclear deal, when United long-range missiles in violation of a U.N. Security Muslim community and the Muslim about judging a class of people based
Nations sanctions on Tehran were lifted, which Council resolution since the nuclear accord was community at large. on the actions of a few, show no
means that more than $100 billion in frozen assigned in July. The White House in December It is only the Muslim community qualms about demonizing all gun
sets will soon flow to Iran and the regime will told Congress that it was preparing sanctions that has the sins of its tiny number of owners based on the actions of a few.
get a lift from new investment and oil sales. The against 12 entities allegedly involved in the bal- criminals projected onto the whole JIM MCDANIEL
mullahs were taking no chances and held the listic-missile program, then abruptly dropped community. There were no armed “pa- Paris, Ky.
hostages until President Obama’s diplomatic the idea the same day. The Administration never triots” standing outside Catholic
checks cleared. explained the about-face and denied that the de- churches in the wake of the clergy Democrats once had a “plain speak-
sex-abuse scandals. Everyone knows ing” president, Harry Truman, who
We’re as relieved as anyone to see the four lay was political.
that all white men aren’t to be blamed was elected to a second term in 1948
Americans coming home, though there was no le- But Reuters reported Saturday that the U.S. for the crimes of the few who commit because of his forthrightness. Donald
gal basis for their arrests. Mr. Rezaian had been stood down after “Iranian Foreign Minister Ja- mass shootings. Trump has appeal because he uses a
held since July 2014 and was convicted last year vad Zarif warned U.S. Secretary of State John When it comes to Muslims, how- similar style.
of espionage without evidence. The other freed Kerry the move could derail a prisoner deal the ever, this same logic doesn’t apply. I think we know what a plain
Iranian-Americans include former Marine Amir two sides had been negotiating in secret for Mayor Kenney wasn’t “sermonizing” speaker like Truman would say about
Hekmati, Christian pastor Saeed Abedini and Nos- months.” On Sunday, with the Americans on or patronizing the public, but seeking Philadelphia’s mayor.
ratollah Khosravi-Roodsari, a dual citizen whose their way home, the U.S. went ahead with very to remind it that all Muslims should LARRY G. DEVRIES
detention wasn’t previously reported. limited sanctions against 11 entities and individ- not be blamed for the alleged actions Vancouver, Wash.
But the Iranians negotiated a steep price for uals for procuring components for the missile of Edward Archer. He was trying to as-
their freedom. The White House agreed to par- program, but Iran has promised to accelerate its sure that the Muslim woman in a head Regarding the mayors of Philadel-
scarf buying groceries won’t be cursed phia and Cologne, and our president,
don or drop charges against seven Iranian na- missile deployments in any case. with racial slurs, or the mosque won’t Chico Marx said it best: “Who you
tionals charged with or convicted of crimes in By the way, the U.S. also agreed to send Iran be firebombed or the Sikh man wear- gonna believe? Me or your own eyes?”
the U.S., mostly for violating sanctions designed $1.7 billion in a settlement related to the sale of ing a turban—who isn’t even Mus- JACK RIGBY
to retard Iran’s military or nuclear programs. military equipment prior to the 1979 revolution. lim—won't be attacked and killed. HUDSON, OHIO
Iran gets back men who were assisting its mili- Mr. Obama defended the deal as protecting the
tary ambitions while we get innocents. This is U.S. against greater liability at The Hague claims
similar to the lopsided prisoner swaps that Mr. tribunal, as if Iran has obeyed international law
Obama previously made with Cuba for Alan in response to claims by the American victims
Librarians’ Role Changes as Information Does
Gross and the Taliban for alleged deserter Sgt. of its terrorism. Regarding Steve Barker’s “In Age of thing for libraries and our communi-
Bowe Bergdahl. All of this shows that the nuclear accord is Google, Librarians Get Shelved” (op- ties. It fosters a diversity of skills that
ed, Jan. 11): Not all librarians are on go beyond traditional library and in-
The U.S. didn’t resolve the case of Robert already playing out as critics predicted. The
the shelf. In my contact with librari- formation science education and al-
Levinson, a former FBI agent who disappeared West will tread gingerly in challenging Iran’s ans with master’s degrees in library lows libraries to add a degree of flexi-
in Iran in 2007. Iran claims it doesn’t know where nonnuclear military and regional ambitions lest science, I have seen the rise of the li- bility in meeting our users where their
he is. Iran also refused to release its newest hos- it renege on its nuclear promises. Iran has again brarian/reference expert. Even my needs are. The millennials are here in
tage, oil-industry executive Siamak Namazi, who shown the world that taking American hostages 12th-grade Advanced Placement stu- force and they are helping us change
was detained in October and accused of espio- while Barack Obama is President can yield a dip- dents were cautioned that term pa- our service model. Hurrah for that!
nage though no charges have been brought. Per- lomatic and military windfall. pers had to be researched by consult- RIVKAH K. SASS
ing peer-reviewed journal articles that Executive Director
resided in specific databases, accessi- Sacramento Public Library
The Vindication of Phoenix ble through library subscriptions. The
higher-level information that students
Sacramento, Calif.
T
sought isn’t accessible by googling. I Mr. Barker doesn’t mention the
he Obama Administration has con- securing the right bureaucrat’s rubber stamp
am in awe at how savvy professional profession’s metamorphic shift to in-
ducted a running assault on for-profit to host events on bases. Yet the Pentagon ac- librarians are at guiding students to formation science. Many thriving li-
colleges, so it’s notable when a target knowledged that Phoenix had taken “appropri- the right database for the topic and brary schools offer MLIS (masters in
survives. On Friday the Penta- ate corrective action at this assisting them with search technique. library and information science), often
gon removed the University of The Pentagon backs off time.” For my own students, the professional with technology concentrations. So it
Phoenix, which enrolls about its punishment of In defense of due process, librarian alleviated much of the frus- isn’t that the professional librarian is
9,300 service members, from Senators John McCain, Lamar tration associated with finding cur- a dying breed but that the LIS profes-
probation after a three-month the for-profit college. Alexander and Jeff Flake wrote rent and relevant information on a sion is in flux.
detention. In October the De- to Defense Secretary Ashton specific topic. Shifting from papyrus scrolls as a
fense Department blocked Carter noting that the Penta- CHRISTINE BRONSON medium to the codex format jarred
Phoenix from enrolling new students using mili- gon seemed to be “unfairly singling out certain Barker, N.Y. the profession in the fourth century,
as did the later advent of Gutenberg’s
tary tuition assistance and from sponsoring job institutions of higher education” under pressure While a Google search will provide printing press. The LIS professional’s
training or “any recruitment-type activities” on from Senator Dick Durbin. The Illinois progres- you with thousands of results, it can’t role is becoming one of organizing
military bases. Probation was a disproportion- sive is Congress’s leading scourge of for-profits help you readily decipher between the and creating tools for maintaining in-
ate use of force. since Iowa’s Tom Harkin left for more gainful relevant and irrelevant information— formation in a digital ecosystem.
Phoenix’s putative infractions included employment. They also noted that Phoenix, like other than assuming the top results JESSE MOSKOWITZ
vague “inquiries” by the Federal Trade Commis- many for-profits, has a “long history of serving must be applicable to your search Simmons School of Library and
sion and California Attorney General Kamala working adults and others for whom traditional query. You need professionals who can Information Science
Harris as well as “allegations published by the university schooling is unavailable.” assist users with evaluating resources. Boston
Center for Investigative Reporting” that the for- Defense backed off, citing its “internal re- AUSTIN MARTIN WILLIAMS, M.L.S., J.D.
profit was handing out unauthorized “challenge view, the university’s response to the depart- North Carolina Central University At a time of information overload
School of Law and growing gaps between digital
coins,” which sundry businesses and colleges ment’s concerns” and the “active engagement
Durham, N.C. “haves” and “have-nots,” the roles for
issue in recognition of service members. and cooperation by representatives of the Uni- dynamic and engaged librarians are
If allegations and investigative requests are versity of Phoenix, and other relevant materi- It is true that technology is a part growing.
cause for probation, then Harvard, the Univer- als.” Phoenix is lucky it could call on Mr. Mc- of the everyday world of libraries and SARI FELDMAN
sity of Chicago and every other college investi- Cain, who chairs the Senate Armed Services librarians, and it is also true that President
gated for Title IX violations should also be sanc- Committee. Most Administration targets aren’t there are new positions that don’t re- American Library Association
tioned. Defense also rapped Phoenix for not so fortunate. quire master’s degrees. That is a good Parma, Ohio
Beijing’s Overseas Kidnapping The Fed Needs Humility About Margin Rules
W
ith a confession aired Sunday on a lawyer for him. She has asked Swedish offi-
I was astonished to read that the set prices and quantities in the capi-
state television, Chinese authorities cials, who say they take a “serious view” of Mr. Federal Reserve is considering margin tal markets?
have begun to explain the recent dis- Gui’s plight, to accompany her to China. requirements (“Fed Eyes Old Rule to WILLIAM POOLE
appearances of five Hong Kong Soon after the confession Bolster Oversight,” page one, Jan. 11). Cato Institute
booksellers. The cases have A bookseller taken in aired Sunday, a pro-Beijing Going down that route is foolish. Washington
raised global alarms because Thailand ‘confesses’ on website reported that another Every economist who has studied Mr. Poole retired as president of
the men, whose books criticize missing bookseller—Lee Bo, economic policy at even an elementary the Federal Reserve Bank of St. Louis
Chinese leaders, appear to Chinese state television. who vanished Dec. 30—had level understands the basics of control in March 2008.
have been abducted by state written a letter to his wife theory. A policy instrument that has
agents operating beyond their saying he is helping mainland uncertain and unpredictable effects is
legal remit in Hong Kong and Thailand. Now Bei- authorities investigate Mr. Gui, whom he a bad instrument. Consider the credit Hellfire Missile Caper Shows
controls the Fed introduced in March
jing is saying the first arrest relates to a deadly learned was a “morally unacceptable person.” 1980 at the behest of President Carter.
Administration’s Priorities
drunk-driving incident way back in 2004. This also reeks of state propaganda. The Fed thought it had designed a sys- The article “Missing Missile From
That’s the crime confessed to on video by Gui Before his own disappearance, Mr. Lee had tem of credit controls that would have U.S. Shows Up in Cuba” (page one,
Minhai, who was completing a book on the pri- spoken out for Mr. Gui and their other vanished benign effects. Fed leadership was as- Jan. 8) speaks volumes about the ad-
vate life of Chinese leader Xi Jinping when he colleagues. He said all authors tied to their pub- tonished at what happened. Consumer ministration’s real priorities with
vanished from his home in Thailand in October. lishing house were scared, but that he felt safe spending tumbled—an unanticipated weapons. It apparently thinks it is
Sobbing as he appeared on TV, Mr. Gui claimed as long as he stayed in Hong Kong. That confi- outcome—and the economy fell into more important to mess with old guys
he turned himself in and is “willing to be pun- dence proved unfounded when days later he recession. Unemployment rose at gun shows selling Colts and Lugers
ished” for leaving China in violation of the vanished from a downtown warehouse. sharply. The Fed removed the controls than safeguarding crucial military
terms of his suspended sentence for drunk driv- Mr. Lee is a British citizen whose abduction a few months later. I urge every mem- technology. Loss of that Hellfire mis-
ber of the Federal Open Market Com- sile likely will cost more U.S. lives
ing. He added that, though he is a Chinese-born from Hong Kong would represent an “egregious
mittee to read the transcripts and than the old guys at gun shows will.
JOHN MOORE/GETTY IMAGES
Swedish citizen, “I truly feel that I am still Chi- breach” of China’s treaty promises concerning staff documents of FOMC meetings of MARK STEG
nese” and “hope that the Swedish side” will “let civil liberties in the former British colony, Brit- that period. Erie, Pa.
me solve my own problems.” ain’s Foreign Secretary Philip Hammond said this If the Fed introduces credit con-
As kangaroo confessions go, this one is par- month. China’s Foreign Minister Wang Yi replied, trols, what will be the implicit Fed
ticularly unconvincing. Mr. Gui disappeared in a preview of Mr. Gui’s confession, that Mr. Lee message? If the controls don’t work,
without warning from the Thai resort town of is “first and foremost a Chinese citizen.” will the Fed double down or will the
Pattaya and then, per Reporters Without Bor- When reports of the missing booksellers sur- FOMC raise the federal-funds rate
ders, turned up on a Beijing-chartered flight faced, some speculated that rogue Chinese target, or both? Introduction of con- A Hellfire missile mounted on an aircraft.
alongside other Chinese dissidents repatriated agents could have mounted a snatch-and-grab trols will unsettle market expecta-
with Thai approval. Video from his Thai apart- campaign without approval from higher-ups in tions and make a return to a normal Letters intended for publication should
monetary policy more difficult. More be addressed to: The Editor, 1211 Avenue
ment building shows unidentified Chinese men Beijing. Mr. Gui’s televised confession suggests
important, suppose the Fed could de- of the Americas, New York, NY 10036,
searching his computer after he vanished, which official knowledge and complicity. The cases sign a perfect set of controls that or emailed to wsj.ltrs@wsj.com. Please
is odd for a decade-old drunk-driving case. represent an escalation of China’s assaults on would permit it to set the volume of include your city and state. All letters
Mr. Gui’s daughter, who lives in Britain, says journalism, the autonomy of Hong Kong and the credit with great precision. Do we are subject to editing, and unpublished
she knows nothing of the 2004 incident and has rights of overseas Chinese who are citizens of want the Fed or any other govern- letters can be neither acknowledged nor
returned.
been barred from visiting her father or hiring other sovereign nations. ment entity in a market economy to
OPINION
After the Carnage, Shale Will Rise Again

By Mark P. Mills vestments in dot-com firms.
H
Just as a new Internet ecosystem
ow low can oil prices go? rose from the ashes of the dot-com
When pundits start com- crash, Shale 2.0 will emerge—and for
peting to predict where the same structural reasons. Under-
the barrel will hit bot- lying physical and intellectual assets
tom, you know that a re- don’t evaporate in bankruptcies, and
bound is inevitable. It’s the inverse America’s investors and entrepre-
of what happens before a high-price neurs are resilient. There is plenty of
bubble bursts. Only a few years ago capital standing by; more than a
forecasters were suggesting that oil half-trillion dollars sits in the coffers
might hit $300 a barrel. of oil companies and petroleum pri-
The unpleasant reality is that pe- vate-equity firms. The bellwether for
BLOOMBERG
troleum prices are cyclical. Starting Shale 2.0 will be a boom in mergers
with the 1973-74 Arab oil embargo, and distressed asset acquisitions.
they have been through six ex- In 2016, however, low oil prices
tremes. Because the peaks and the will likely persist, and there’s an ar-
valleys both wreak financial havoc, gument for letting creative destruc-
producers and politicians imagine a tion take its course. Competition is
Goldilocks ideal, with prices “just A Flint Hill Resources oil refinery in Corpus Christi, Texas. about to get fiercer as Iran, now sanc-
right”—not so high that legislators tion-free, adds to markets as much as
feel pressure to claw back “windfall ratings on three-fourths of the oil growing demand for oil. production of four million barrels a a million barrels a day. Why not cre-
profits,” and not so low that suppli- and gas producers it monitors. When prices rise again, even mod- day. Remember, global prices are af- ate incentives to propel America’s
ers fall like dominoes, destroying Here’s the big question, the one estly, as they eventually will, shale fected by changes of only one to two Shale 2.0 technology, the key to com-
jobs and tax revenue. that makes this cycle different: What producers will be ready—and this is million barrels a day. The upshot is peting at low costs? Congress could
The latter is what we’re seeing happens to shale oil? The jobs and what worries OPEC, Russia and Iran. that absent something like a major fund shale science and technology
now, with oil falling below $30 a revenues from America’s newest in- Many foreign producers need oil war, oil prices won’t be able to spike programs, without tapping taxpayers,
barrel. Survey the damage so far: dustry literally kept the country out above $80 a barrel to balance their again. That’s especially true now that by selling, over time, some of the $10
More than 100,000 jobs are gone, of recession during the years of national budgets. Yet industry experts America can finally sell oil in world billion-plus in excess oil stored in the
tepid growth that have characterized at RBN Energy foresee vast swaths of markets, courtesy of Congress’s re- Strategic Petroleum Reserve. Less oil
the current administration. American shale profitable at just cent lifting of the export ban. is needed in the reserve anyway,
Vast swaths of shale will be The bad news is that there will be north of $40 a barrel. And it can Shale 2.0, when it comes, will be thanks to the shale industry.
more pain to come. Low prices will come online extremely quickly. even better. The technology is ad- Lawmakers should create a pub-
profitable with oil at about continue to drive out companies that The billion-dollar projects of con- vancing at a speed usually associ- lic-private program on Strategic Pe-
$40 a barrel, and the are overleveraged or poor perform- ventional oil require long planning ated with Silicon Valley. Over the troleum Research Technology to get
ers. Stronger firms might suffer col- by enormous corporations or nation- past half-decade, average output per next-generation shale tech out of the
nimble industry is ready. lateral damage. In the end, though, state monopolists. Each shale well is rig has risen at least 400%. Produc- lab and into the field. Today hydro-
most companies will survive. Many comparatively tiny—which is why tivity rose 40% last year, despite carbons account for only 8% of fed-
will emerge well positioned for the tens of thousands are drilled. Per- cost constraints. The rigs are getting eral energy research, though they
most of them last year. The number next cycle, having acquired new as- mits are obtained in weeks on pri- cheaper, and the efficiencies brought supply 80% of America’s energy. It’s
of shale rigs in service has collapsed sets (at distressed costs) that can be vate and state lands (where so much by the latest tools—from data ana- time to send a signal to markets, our
by 60%. Banks are worried about deployed as demand rises. shale resides), and the wells are lytics to robotics to advanced mate- allies and not-always-friendly com-
their oil loans. Shale states are read- Even with China’s economy slow- drilled in months instead of years. rials—have yet to be deployed. petitors. America’s tech-centric shale
justing budgets for shortfalls. About ing, global oil use will still rise by 1.3 Structurally speaking, shale resem- The shale industry expanded dur- “factories” are here to stay—and
$200 billion of oil and gas assets are million barrels a day this year— bles a multitude of small tech-facto- ing a period of cheap money from getting better all the time.
up for sale world-wide. equal to the peak daily output of the ries “manufacturing” oil from rocks. the Federal Reserve. Over the past
American shale oil companies— entire Bakken Shale field. Middle- When prices tick up, thousands of decade, a collective $1 trillion was Mr. Mills is a senior fellow at the
whose booming production is a prin- class automobile ownership in Asia profit-seeking investors make indi- exuberantly invested in a vast infra- Manhattan Institute and author of
cipal cause of the global glut—have is rising steadily, from today’s aver- vidual decisions to turn each fac- structure of pipes, tanks, refineries its forthcoming paper, “Geopolitics
been hit hard. Last year two dozen age of 60 to 80 cars per 1,000 resi- tory’s switch to “on.” That’s how the and factories, as well as intellectual in the New Oil Era: Why and How
defaulted and 15 filed for bank- dents toward the West’s 600 to 800 U.S. so rapidly achieved, from 2009 property and skills. In a sense, the America Should Expand its Petro-
ruptcy. Standard & Poor’s puts junk cars. All the fundamentals point to to 2015, the record-breaking rise in boom looks a lot like the 1990s in- leum Power.”
The Other Dangers From That North Korean Nuke Test

By Victor Gilinsky sion weapon, it was invented in the concerning is that North Korea may will be so. Several of these countries nel have been especially ingenious in
And Henry Sokolski late 1940s at the Los Alamos National have received the boosting technol- have nuclear-power reactors. Others their ability to perform with very
T
Laboratory in the U.S., so the technology from a more experienced state. plan to get them. Some have stock- limited resources. A former chief in-
he first thing to say about ogy is nearly 70 years old. We may be witnessing a new, more piled reactor-grade plutonium. spector for the International Atomic
North Korea’s Jan. 6 nuclear Boosted fission technology results virulent form of nuclear proliferation. There is no question now, if there Energy Agency, who is familiar with
test is that, despite the pro- in lighter warheads, which means If additional countries opt for nuclear ever was, that the plutonium pro- North Korean capabilities, made the
nouncements of instant experts, we they can fit on missiles. It also—and weapons—the worry list includes duced in nuclear-power reactors— point by telling us that if he were on
know almost nothing about its tech- most concerning for those of us in several Middle Eastern nations, from whether in Russia, Iran, Japan, a desert island and could choose one
nical characteristics. Even the rela- the nonproliferation business—per- Iran to Turkey, and Far Eastern France, Pakistan or the U.S.—is weap- person to help him survive, he would
tion of the seismic signal to the ac- mits a fission bomb to use any type states, including South Korea and ons material. Unfortunately, many in choose a North Korean engineer.
tual size of the explosion is uncertain. of plutonium, including so-called re- Japan—they should not be expected the national security and arms-con-
But there are some hints about the actor-grade, without degradation in to content themselves with 1945-era trol communities have not caught up Mr. Gilinsky served as a U.S. nu-
test’s significance for proliferation performance. designs, even as a starting point. The with these developments. clear regulatory commissioner,
that the press, in its eagerness to dis- Here’s how it works: When about tremendously greater availability of To return to whether North Korea 1975-84, and is an adviser to the Non-
miss North Korea’s claim that it deto- 1% of the fission reaction has taken more-advanced designs, the rapidly has progressed toward hydrogen proliferation Policy Education Center.
nated a hydrogen weapon, seems to place, the thermonuclear fuel—deu- growing increases in technical capa- weapons: Although we agree with the Mr. Sokolski, NPEC’s executive direc-
have missed. terium and tritium (doubly and tri- bilities like computing and materials general view that this is unlikely, it tor, is the author of “Underestimated:
ply heavy hydrogen)—reacts and science, and improved methods for may be unwise to dismiss the possi- Our Not So Peaceful Nuclear Future”
floods the remaining nuclear explo- shaping materials assures that this bility. North Korea’s technical person- (Strategic Studies Institute, 2016).
Scoffing at Pyongyang’s sive with neutrons. Thus, the
weapon needs less conventional ex-
hydrogen-weapon claims
ignored new, dangerous
plosive to trigger the nuclear reac-
tion, and less heavy material sur-
rounding it to keep it together long
New Evidence on Immigrants and Jobs
potential developments. enough for the fission to take place. By Giovanni Peri enabling anyone to freely leave the four cities Mr. Borjas chose as a con-
With a boosted weapon there is no And Vasil Yasenov island. More than 125,000 Cubans trol group reflected the similarity in
W
concern about stray neutrons start- fled to the U.S. until the Mariel their employment growth rate for the
The estimated small size of the ex- ing the fission chain reaction too ith millions fleeing Syria and boatlift, as it was called, ended in years 1977-79. That’s too short a pe-
plosion—roughly six to nine kilotons early and having the bomb blow other war zones, the U.S has September. More than half of these riod to be confident that the market
according to South Korean officials— apart before attaining full yield. committed to increasing the refugees settled in Miami. Most for low-skill workers in these cities
has been taken as a sign that it did Today’s missiles are highly accu- refugees it will admit from 70,000 to were low-skill—which meant that was similar to Miami’s.
not involve a two-stage thermonu- rate, so there is no need for the huge 85,000 in 2016 and 100,000 in 2017. A the supply of workers without a We have reanalyzed the Mariel
clear device (thermonuclear being thermonuclear yields—up to mega- majority of Americans oppose admit- high-school diploma in the city in- episode using the largest and most
synonymous with “hydrogen weapon” tons—sought years ago to compen- ting any refugees from Syria, their creased between 12% and 15%. representative annual sample of
in the bomb business). That is likely sate for missing a target by miles. opposition driven by concern over high-school dropouts from the May/
correct, but not necessarily for the And boosted fission technology puts terrorism. But there is another ques- ORG Current Population Survey. It
reason stated. The purpose of a low- plutonium stockpiled from the operation that may shed light on the immi- A large influx of Cubans to includes 44 cities among which a re-
yield experimental explosion might tion of nuclear power plants essen- gration controversy. What would be cently developed statistical method-
have been to check thermonuclear tially on a par with so-called “weap- the economic impact on American Miami did not depress the ology allows the researcher to iden-
design parameters. But a two-stage ons-grade plutonium.” We say workers if the U.S. were to admit wages or employment of tify those whose labor markets
design is indeed a big step from a fis- “essentially” because some adjust- tens of thousands of Syrian refugees? behaved as closely as possible to
sion bomb, so we can reasonably set ment in design is needed to compen- Immigrants come to this country low-skill American workers. Miami’s between 1972 and 1979. We
this possibility aside. sate for the greater heat generation in mostly to get jobs when the economy then compared the average wages
Unless the North Koreans were ly- power-plant material, though engi- is growing, and immigration, includ- and employment rates of low-skill
ing through their teeth when they neers know how to do that. ing illegal immigration, is mostly a Economist David Card analyzed workers in Miami with such a con-
claimed it was a hydrogen explosion, Boosting is still pretty sophisti- gradual and economy-driven process. how the wages and employment rate trol group after 1979.
there is another possibility—one with cated technology, but not beyond Refugees, however, often arrive sud- of native workers in Miami changed Our results—released as National
lower technological demands, but still countries with nuclear facilities and denly, may settle in areas where the from 1979 (before the inflow) to Bureau of Economic Research Work-
potent implications. A small amount highly qualified scientists and engi- economy is not booming, and can 1981-82 (after the inflow). His influ- ing Paper No. 21801 on Dec. 15—
of thermonuclear fuel, say a tenth of neers. The significance of North Ko- compete legally for jobs. These fea- ential study, published in 1990, com- confirm Mr. Card’s original study.
an ounce, inserted into a so-to-speak rea’s boosting test—if that is what tures let economists study the im- pared Miami with Atlanta, Houston, There is no evidence that Miami’s
standard fission warhead can mark- occurred—goes far beyond the re- pact of a purely supply-driven inflow Los Angeles and Tampa-St. Peters- low-skill workers experienced wage
edly improve its performance while gion. Pyongyang is known for selling of arrivals on the wages and employ- burg, a control group of cities with or employment decline relative to
allowing a very substantial reduction weapons technology and may sell this ment of native workers. similar demographic and labor-mar- those in our control group of cities
in weight. Known as a “boosted” fis- one, a worrying prospect. Equally A well-known episode took place ket characteristics during the 1970s. in 1980, 1981 or 1982. We also ana-
after April 20, 1980, when Fidel The results were striking: The lyzed different subgroups—males,
Castro opened the port of Mariel, 1979-1981 wage and employment females, Hispanics and non-Hispan-
changes in Miami were not much ics—and did not find any significant
different than in the other cities. wage effect in Miami after 1979.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch Robert Thomson
Notable & Quotable The evidence, he concluded, was
that a sudden increase in the supply
This result suggests that the
common belief that more immigrant
Executive Chairman, News Corp Chief Executive Officer, News Corp
Gerard Baker William Lewis From Science magazine’s “The of low-skill workers had no signifi- workers depress native workers’
Editor in Chief Chief Executive Officer and Publisher Next Oil Crisis Looms Large—and cant negative effect on native labor- wages or employment is not a good
Rebecca Blumenstein; Matthew J. Murray, Deputy DOW JONES MANAGEMENT:
Perhaps Close,” Aug. 21, 1998: ers with similar schooling levels. representation of what happens.
Editors in Chief; Almar Latour, Executive Editor Anna Sedgley, Chief Financial Officer; While there have been some criti- Earlier research by one of us has
DEPUTY MANAGING EDITORS: Ashley Huston, Chief Communications Officer; This spring . . . the Paris-based cisms of Mr. Card’s study over the shown that native workers do not
Paul Meller, Chief Technology Officer;
Michael W. Miller, Senior Deputy;
Mark Musgrave, Chief Human Resources Officer;
International Energy Agency (IEA) years, a recent paper by Harvard suffer the negative impact of arriv-
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, News Operations and Talent; Katie Vanneck-Smith, Chief Customer Officer of the Organization for Economic economist George Borjas rejected ing immigrants because they take
Neal Lipschutz, Ethics and Standards; OPERATING EXECUTIVES: Cooperation and Development the study’s conclusion. According to different jobs. Moreover, their ar-
Alex Martin, Enterprise; Ann Podd, Global Edwin A. Finn, Jr., Barron’s; Edward Roussel, (OECD) reported for the first time Mr. Borjas, the wages of one sub- rival stimulates productivity and
Production; Andrew Regal, Global Head of Video; Innovation; Ingrid Verschuren, Data Strategy;
Jessica Yu, Global Head of Visuals
that the peak of world oil produc- group in Miami—non-Hispanic growth in the economy.
Suzi Watford, Marketing;
Paul A. Gigot, Editor of the Editorial Page; Professional Information Business, Sales: tion is in sight. Even taking into males older than 25 with no high- Miami’s experience after the
Daniel Henninger, Deputy Editor, Editorial Page Nancy McNeill, Global; William Ashworth, account the best efforts of the school diploma—did decline after Mariel boatlift suggests that an in-
Americas; Florence Lefevre, Europe; Tomasz explorationists and the discovery of the Marielitos arrived. flux of refugees from Syria to the
WALL STREET JOURNAL MANAGEMENT:
Rustowski, Asia
Trevor Fellows, Head of Global Sales; new fields in frontier areas like the But his study has serious limita- U.S. would have no significant eco-
Chris Collins, Advertising; Christina Komporlis,
Circulation; Jason P. Conti, Legal;
Caspian Sea . . . sometime between tions. Mr. Borjas’s subgroup consisted nomic impact on American workers.
Joseph B. Vincent, Operations; Larry L. Hoffman, 2010 and 2020 the gush of oil from only of males ages 25-59, and it ig-
Production wells around the world will peak at nored non-Cuban Hispanics. His sam- Mr. Peri is chairman of the eco-
EDITORIAL AND CORPORATE HEADQUARTERS: 80 million barrels per day, then ple consisted of only 17 to 24 workers nomics department at the University
1211 Avenue of the Americas, New York, N.Y., 10036 begin a steady, inevitable decline, in Miami in each year, a number too of California, Davis, where Mr. Ya-
Telephone 1-800-DOWJONES
the report says. small for statistical significance. The senov is a Ph.D. candidate.
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CITY NEWS A18, A19 | ARTS & ENTERTAINMENT A21 | HEARD & SCENE A21 | SPORTS A22
Dueling Identities Unexpected

Performances
ASSOCIATED PRESS
Knicks show the best and worst sides | A22 ARTS | A21
WSJ.com/NY * * THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | A17
Carriage Deal Is Under Fire

Concerns include strain late Sunday, is being criticized. did Douglas Blonsky, president The changes would go into
Pedicab drivers are angry be- of the Central Park Conser- effect in the spring if the City
placed on fewer horses cause the agreement would im- vancy. Council approved the agree-
and high cost of stable; pose restrictions that could put “Our biggest concern is ment. A council hearing is
them out of business. Parks ad- who’s paying and what is the likely this week, a spokesman
council must give OK vocates are questioning taxpayer going to get from said.
whether it makes sense to this,” said Tupper Thomas, the Talks about a deal intensi-
ADRIENNE GRUNWALD FOR THE WALL STREET JOURNAL
BY JOSH DAWSEY spend more than $20 million executive director of New York- fied last week and included the
AND MARA GAY on a stable and are raising con- ers for Parks, an advocacy mayor, council members and
cerns about damaging the park group. “This is tragically not a Teamsters Local 553, which
In his election campaign, or a historic building that great solution.” represents the carriage drivers.
Mayor Bill de Blasio promised would be converted into the The deal between the city The discussions stalled several
to ban horse-drawn carriages in working stable. and the carriage-drivers union times over minutiae.
Central Park. The horse-carriage drivers would ultimately reduce the De Blasio aides hoped to an-
More than two years later, are upset that some of them number of licensed horses to 95 nounce the deal over the holi-
Mr. de Blasio has struck a deal would lose their jobs. A spokes- from about 180 and relocate day weekend to avoid more bad
on the tourist attraction that man for New Yorkers for Clean, the animals to stables inside publicity around the issue,
calls for sharply reducing the Livable and Safe Streets, or NY- Central Park. The horses would which has dogged the mayor
number of horses, refurbishing CLASS, the anti-horse-carriage no longer be on the streets, since 2013, when he promised
a stable in the park and limit- group that generously contrib- alongside traffic, a situation to remove the horses on “day
ing pedicabs. uted to Mr. de Blasio’s mayoral that some animal-rights groups one” of his administration.
A carriage horse Monday on Manhattan’s Central Park South. Yet the solution, announced bid, declined to comment, as say is cruel. Please see HORSES page A18
Shelter Troubles Paying Homage to Martin Luther King Jr. and His Legacy
Plague de Blasio,
Arm His Critics
BY JOSH DAWSEY including Mr. Stringer and Mr.
AND HENRICK KAROLISZYN Cuomo, both Democrats.
“Some would rather stay
After New York City Control- outside in the frigid cold than
ler Scott Stringer issued an au- risk entry,” Mr. Cuomo said.
dit in December highlighting The state has found 2,500
thousands of violations in the health violations in homeless
city’s homeless shelters, he re- shelters across New York, he
ceived a call from Gov. Andrew said.
Cuomo. Audits over the past several
“He said he thought it was a months by Mr. Stringer’s office PETER FOLEY FOR THE WALL STREET JOURNAL
very thorough audit and he was and the city Department of In-
reviewing it,” Mr. Stringer said. vestigation documented con-
“Before these audits came out, cerns at shelters including
the city wasn’t moving in any holes in walls, blocked fire es-
real way to deal with this.” capes and nonworking fire
alarms, mold and mildew on
The governor has surfaces, vermin including
mice, rats and roaches, and in-
given Mr. Stringer adequate security. Mr.
greater oversight of Stringer’s December audit
showed that dozens of shelters
the city’s shelters. each had more than 20 viola-
tions. Some had more than 100. TRIBUTES TO A TITAN: Manhattan Country School’s Martin Luther King Jr. Commemorative March proceeds Monday on Central Park West,
“The shelters are terrible, vi- an annual event planned by the school’s eighth-graders. Political and community leaders took part in policy forum related to Dr. King. A19
Mayor Bill de Blasio’s aides olent,” said George Daniels, 73
say they have worked aggres- years old, who was set to sleep
sively to combat homelessness the other day in Penn Station.
Workers Get Tips to Survive Attack

from the beginning of the ad- “They steal from you. Too
ministration. But the city’s net- much for a man my age.”
work of 637 shelters has be- Elizabeth Missy, also on the
come a problem for the mayor streets in Manhattan, said city
as he continues to grapple with outreach workers had offered BY ZOLAN KANNO-YOUNGS officials from NYPD Shield, a rorism. “We certainly have tions after the Paris attacks.
the rising number of people in to take her to a shelter. She de- program that provides secu- learned an awful lot—fortu- Shield officials said the pro-
the shelters along with the clined. Like Mr. Daniels, she Some employees at an in- rity and counterterrorism nately and unfortunately—be- gram is booked with busi-
homeless who live in the said theft was rampant at the surance firm in Midtown Man- training to private-sector busi- tween San Bernardino, more nesses through April.
streets. shelters. hattan thought hiding under a nesses. currently, and in Paris.” Mr. Adams said it is imper-
Last week, Mr. Cuomo gave City Hall is trying to fix the large desk would be a wise “Most people, particularly The program has seven dif- ative for private-sector busi-
Mr. Stringer greater oversight shelters, said Steve Banks, who move if someone wielding a in New York City, don’t have ferent classes, with topics that nesses to beef up security.
of the city’s shelters, appoint- is heading homeless efforts for gun walked into their office any knowledge of guns,” said range from detecting a poten- “We can’t continue to just go
ing him to inspect and possibly the city. He is pushing for in- and blocked their escape. Detective Kathleen Thompson, tial attack in a mailroom to on with business as usual be-
close them. spections of every shelter over But after a New York Police who taught the class. “They teaching hotel employees what cause the business of terror
Although about 58,000 peo- the next 45 days. He recently Department security class, the are surprised that their desk— a man-made bomb looks like. isn’t usual,” he said.
ple live in the shelters, many met with nonprofit providers employees learned that taking their nice big desk—is not go- NYPD Commissioner Wil- For the active-shooter sce-
people hesitate to use them be- and others to determine how cover under a desk isn’t the ing to be as good as that file liam Bratton described the nario class, the program’s
cause many are dirty and dan- much money the city needs to best option. Hiding instead be- cabinet.” program in December as “a most popular, instructors
gerous, according to interviews improve conditions. hind a file cabinet would in- NYPD Shield, which began a bedrock of what we’re talking present case studies and video
with dozens of homeless people Mr. Banks said the city had crease their survival odds, decade ago, draws from the about as far as America being footage of previous attacks
across the city. Meanwhile, the fixed 83% of violations found in law-enforcement officials told lessons learned from mass aware.” and recommend ways to pre-
shelters, which are operated by a Department of Investigation them. shootings. “It’s based on prior The counterterrorism pro- vent and survive an attack.
nonprofit providers, outside report released in May. Last week, about 70 em- events, prior incidents, prior gram has been in high de- Last week, officials dis-
contractors and the city gov- “We’re trying to have a seri- ployees at AXA gathered in a attacks or thwarted attacks mand. Brooklyn Borough Pres- cussed the obvious protocols,
ernment, have served as a cud- ous undertaking of problems conference room in the firm’s that we got real smart about,” ident Eric Adams requested such as calling 911. But Detec-
gel for critics of the mayor’s that have built up over de- Sixth Avenue office for a class said James Waters, the de- training for more than 20 local tive Thompson told the class
management on homelessness, Please see AUDIT page A18 about active shooters given by partment’s chief of counterter- businesses and small institu- Please see CLASS page A18
Creative Types Let It All 28° TODAY’S

Weather
Real Feel
9 a.m. 4°
Hang Out on Video App HIGH
5 p.m. 6°
Record High
BY PIA CATTON rethinking her crowdsourced
64° (1951)
theme: strawberry.
It’s like having a peephole Later, everyone would re- SUNNY, Sunrise/Sunset
into an improv workshop convene on couches for a WINDY 7:16 a.m./4:58 p.m.
brimming with Broadway in- reading of a five-minute play
siders. titled “Saratoga, It’s Been a Wednesday’s High
In one room, a cluster of
them, sprawling on lounge
Pleasure Being Here in Your
Wonderful City,” written
37°
CASSANDRA GIRALDO FOR THE WALL STREET JOURNAL
chairs, erupted within the last hour.

THEATER into cheers for a No audience was present at
TUESDAY new show idea the event, held in the apart- N.Y. Sports Lineup
they had just ment building of Broadway
concocted: A theater owner Jordan Roth. 7 p.m. Tuesday
one-man “Dream Girls,” star- Instead, viewers were watch- Flames @
ring the ebullient Michael ing via Periscope, the free, Devils
James Scott of “Something live-streaming app that allows
Rotten!” anyone to share real-time
Just outside the room, Beth video with their followers in 7 p.m. Tuesday
Malone of “Fun Home” and the moment and for the next Canucks
Stephen Hanna of “An Ameri- 24 hours, after which content @ Rangers
can in Paris” ran down the disappears.
hall, rehearsing moves by a Acquired by Twitter a year
Theater owner Jordan Roth, in blue shirt, with the actors Michael James Scott and Montego Glover. choreographer who was busy Please see APP page A20 For N.Y. sports coverage, see A22
A18 | Tuesday, January 19, 2016 * *** THE WALL STREET JOURNAL.
CITY NEWS
AUDIT Shelter in Manhattan, Rashida

Grant-Seales said there are rats,
cockroaches and people getting
“drunk and high until three in
Playing Pinball, Creating Whiz Kids
Continued from page A17 the morning.” Ms. Grant-Seales, If you’ve ever been a
cades,” Mr. Banks said. who lives there with her 2-year- third-grader, you’d probably
The city is spending more old daughter, said she feared agree there’s no better place
than $1 billion annually on its for her daughter’s safety. The to further your education
homeless programs. Many shel- shelter has more than 100 vio- than a pinball parlor.
ters have long been in poor lations, according to Mr. That undoubtedly ac-
condition in New York even as Stringer’s report. counted for the unrepressed
their numbers have expanded. Ms. Grant-Seales said if peo- anticipation
Mayor Michael Bloomberg was ple saw what was happening in displayed by
criticized for conditions in city the shelter, “it would be shut the students
shelters. down immediately.” at P.S. 145 in
When Mary Wharton, 50, Mr. Banks said his agency Brooklyn as
who now lives in supportive was working with Mr. they
housing in the Bronx, lived in a Stringer’s report, including URBAN marched off
shelter in the 1990s, she said closing many of the so-called GARDNER their school
NATALIE KEYSSAR FOR THE WALL STREET JOURNAL

she constantly feared crime and cluster sites, which are individ- RALPH bus and into
rats. “It was dark, cold and the ual units for the homeless in GARDNER JR. Modern Pin-
most disgusting place I ever apartment buildings. To ad- ball NYC in
lived,” she said. dress the rising numbers of Manhattan’s
Making improvements to the homeless, the administration Kips Bay neighborhood one
shelter network has been diffi- has added so-called safe haven brisk morning.
cult. The de Blasio administra- beds in religious institutions. “This is listening time,”
tion couldn’t keep a promise to Under political pressure, Mr. one teacher informed the
issue report cards on the shel- de Blasio has sought to bring awed third-graders, who de-
ters. City Hall managed to make more public attention to the is- sired nothing more at that
hundreds of fixes starting in sue, with five events staged in moment than to be let loose
the spring, but even more prob- an eight-day stretch earlier this on the emporium’s two-
lems developed, according to month. He replaced Gilbert dozen machines. “Full body
audits and reports issued by Taylor, his homeless-services listening.” P.S. 145 third-grader Joseph Cajamarca showed his pinball prowess on a field trip to Modern Pinball NYC.
Mr. Stringer’s office. commissioner, with Mr. Banks. Steve Zahler, who owns
City Hall is now creating a For his part, Mr. Stringer the arcade with Steve Ep- I include myself because, had no interest in instruc- while it was all fascinating
hotline for residents to call to said the administration was stein, addressed the children. while I’m all for preparing tion. That’s the thing about stuff, what seemed to secure
report problems. Mr. de Blasio now working more closely “There are over 2 miles of our children for the chal- pinball. It instantly monopo- the children’s cooperation
said the administration would with him. wire, 2,000 parts in each pin- lenges of the future, my main lizes all your senses. It ought was a poorly disguised bribe.
do better, and Mr. Banks has “I’m glad they are scram- ball machine,” he said. “If purpose in covering the field to be a controlled substance. “If you pay really good at-
ramped up the number of in- bling the planes now,” he said. something goes wrong, it trip was to have an excuse to Though the children, to tention to Dr. Marsh,” one
spections, leading about 80 of “The planes are in the air.” would take a long time to play pinball. their infinite credit, obeyed teacher had promised at the
them since Jan. 1 —Corinne Ramey fix.” I’d also like to add that no when the time came to re- start of the talk, “when you
Outside the Regents Family contributed to this article. The ostensible purpose of child was denied the oppor- port to the multipurpose guys go back in there you’re
the field trip was to teach tunity to participate just be- room behind the arcade, going to know what you’re
science, technology, engi- cause I was hogging the clas- where Dr. Marsh described looking at and going to have
neering and mathematics, or sic 1978 machine dedicated and displayed a pinball ma- more fun.”
STEM, through the mysteries to the hard rock band “Kiss.” chine’s component parts. But how much more fun
of pinball. Modern Pinball NYC had “These are what we call can a kid possibly have?
“I’m going to tell you a lot much newer games to choose drop targets,” he said as he “Go ahead and play the
of stuff about electricity and from, among them “Black held aloft a metal-and-plastic games now,” Mr. Zahler
magnetism,” explained Ste- Knight,” which had a disobe- contraption. “Each target has shouted, acknowledging the
ven P. Marsh, a pinball aficio- dient habit of muttering, in a a spring behind it. When you inevitable.
nado, patent attorney and Darth Vader-like growl, hit it, it goes down.” With that, the students
former Navy research scien- “Black Knight will play you,” Paying impressively close dispersed like the projectiles
tist who leads the classes. seemingly whenever the chil- attention was a young man, on 1995’s “Apollo 13,” a pin-
It’s a tribute to Modern dren’s chaperones called for and possible future Silicon ball machine Dr. Marsh had
Pinball NYC and the fine silence. Valley mogul, named Joseph mentioned in his lecture,
teachers at P.S. 145 that they I was hoping for a lesson Cajamarca. “Does the WWE though it isn’t included in
didn’t rush into the educa- from Mr. Zahler, who told me have that?” he demanded. Modern Pinball NYC’s arse-
tional component of the he’s ranked 21st in the world Joseph was referring to his nal.
morning too quickly. “After among pinball players. He favorite pinball machine, “That has 13 balls at
you play for a while, we’re taught me about catching “WrestleMania.” The winner once,” he explained.
going to see some of the and cradling the ball with gets crowned world heavy- “Wow!” Joseph had re-
stuff in these pinball ma- one of the flippers, so you weight champ. acted, even though on Wres-
chines,” added Dr. Marsh, could aim better before you Dr. Marsh went on a bit tleMania a mere four balls
LIFE DOESN’T who holds a doctorate.

With that encouragement,
most of us headed to our fa-
released it. But I already
knew that.
Also, as soon as I was be-
longer, discussing things
such as how springs gain
their elasticity from the ar-
can be played simultane-
ously.
LIFE DOESN’T
Your time is valuable,
...so choose MMU.
vorite machines. hind the pinball launcher, I rangement of molecules. And ralph.gardner@wsj.com
Your than
We’re closer timeyou
...so
is valuable,
choose
think
MMU.
...minutes to Manhattan.
HORSES What will the public get out of
it?”
Councilman Mark Levine,
chairman of the Parks Commit-
Continued from page A17 tee, said he is concerned about
We’re closer than you think The anti-horse-carriage the costs of renovating the 150-
...minutes to Manhattan. group, also known as NYCLASS, year-old stables, located in an
backed his run while heckling upper part of the park, and
ADRIENNE GRUNWALD FOR THE WALL STREET JOURNAL
his mayoral opponent Christine moving the horses from there

Quinn, who didn’t want to re- to the lower stretches daily.
move the horses. “It’s going to be an expensive
Steven Nislick and Wendy renovation, no doubt about it,”
mmuair.com Neu, prominent de Blasio do- he said.
nors who backed NYCLASS, Yet, he said, the deal was
mmuair.com
–––––––––– Runway 5/23 6000’ Cat I, ILS –––––– 24hr Index B Aircraft Rescue ––––––––––
met with the mayor at City Hall probably the best compromise
at least twice and gave gener- that could have been reached.
––––– User Fee U.S. Customs & Border Protection –––– FAA Air Traffic Control Tower –––––
ously to the Campaign for One “This matter has occupied a
New York, his political arm. disproportionate amount of the
Like Mr. de Blasio’s battle time and energy of the council
Proud provider of Phillips 66® Jet A and 100LL. with Uber, many City Hall ob- for the past two years,” Mr.
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servers and political scientists Levine said. “Everyone is going
saw the horse-carriage fight as to be relieved that we can focus
difficult to win or manage, with An agreement would limit horse-drawn carriages in Central Park. our attention on other issues
little political upside for the that are facing the council.”
mayor. It involved outside po- shouldn’t be plodding down the “The horses are our top prior- Part of the deal includes
litical donors who wanted him streets of Manhattan, he said, ity.” banning pedicabs below 85th
to do their bidding, an industry and the deal would keep that For Ms. Thomas, of New Street, where most of their
that provided hundreds of jobs, from happening. Yorkers for Parks, the concern business exists.
loud animal-rights activists Christina Hansen, a carriage is the city’s renovation plans Richard Costella, a pedicab
who were difficult to satisfy driver, said the deal was “a ma- for the stables, which could driver, called the portion of the
Be
and park officials sensitive to jor acknowledgment by the city cost more than $20 million, a agreement involving his indus-
actions affecting one of the that horse carriages should city official said. try little more than a deal
city’s gems, Central Park. The stay in New York City.” Ms. Thomas called spending sweetener for the competing
horses also are popular with But she said many drivers public money for the stable a carriage industry. The restric-
visitors. worried that reducing the num- dangerous precedent and said tion “came out of left field,” he
“It’s not everything I ber of horses could impose sig- she had learned of the talks said Sunday.
wanted. That’s why we have a nificant strain on those who re- only last week. “It surprised us “This just completely de-
Yourself.
democratic process,” Mr. de main. all,” she said. “We are con- stroys what pedicabs do in
Blasio said at a news confer- “It’s something we’re very cerned when the park becomes Central Park,” he said. “I don’t
ence Monday. However, horses concerned about,” she said. the solution to a political issue. know what else to say.”
CLASS encouraged employees to call

911 from a landline whenever
possible. Police can’t locate
someone who dials from a
Thompson said. “But he did
not panic. Panic leads to
chaos and chaos leads to peo-
ple getting hurt.”
If escape or hiding prove
impossible, Detective Thomp-
son encouraged the group to
attack the attacker.
Continued from page A17 cellphone, she said. A video showing which of- “Take action against the
that victims of past attacks If a safe room is available, fice furniture absorbs bullets shooter,” she said. “Look at
have erred when calling 911, Detective Thompson in- triggered the most emotion what you have in this room.
pointing out that some people structed the employees to from the crowd. The footage Take the chairs. Throw it,
mistakenly stopped to call po- turn off the lights and put showed an NYPD officer in the swing it, whatever you have to
lice when they had a clear es- their phones on silent. A vi- do.”
cape path. brating phone could draw a Carol Mullings, 53 years old
“Don’t even call 911—keep shooter’s attention, she said.
A vibrating phone from Brooklyn, said she came
going,” Detective Thompson The presentation included a could draw a away feeling more prepared.
told the group. chilling video interview of a “I’ll just defend myself and
shooter’s attention,
Everyone else is already taken. Detective Thompson also student who survived the
2007 shooting at Virginia a detective advised.
not wait for the other person
to do it,” Ms. Mullings said af-
Polytechnic Institute and ter the class.
We Want to Hear State University in Blacks- Detective Thompson said
From You burg, Va. Bronx firing a pistol and a she could sense some people
Have something to say about The student, who was shot, shotgun through both a large were dubious when she said
-Oscar Wilde an article in Greater New survived by lying flat on his desk and a file cabinet. confronting the shooter could
York? Email us, along with back in a room and pressing Many in the crowd gasped be necessary. She reminded
your contact information, at the door shut with both of his when they saw bullets from the class of the passengers on
Custom clothing for the knowing man. gnyltrs@wsj.com. Your letter feet. When the shooter both guns rupture through the a Long Island Rail Road train
could be published in our couldn’t open the door, he desk. who tackled and apprehended
weekly Feedback column on shot through it but the stu- “They’re surprised when a shooter in 1993.
Friday. Letters will be edited dent survived because he was they see the test results,” De- “I tell people all the time,
for brevity and clarity. Please so low to the ground. tective Thompson said. “The you’d be surprised what you
White Plains • Madison @ 45th St • Wall Street • Philadelphia, PA • mysuitny.com include your city and state. “Do you think he was file cabinet gave the best de- can do when your life is at
scared? Of course,” Detective fense, multiple layers.” stake,” she said.
CITY NEWS
Leaders in Step
With Dr. King
On His Holiday
BY CORINNE RAMEY Mark-Viverito and Rep. Carolyn
Maloney spoke about gun laws,
New York elected officials and Sen. Kirsten Gillibrand ar-
and community leaders on gued for paid family leave.
Monday gathered to honor the State Comptroller Thomas Di-
Rev. Martin Luther King Jr. and Napoli advocated for more con-
PETER FOLEY FOR THE WALL STREET JOURNAL

describe their own policies and tracts with businesses owned
ideas as in-line with his legacy. by women and minorities, and
The officials spoke at the an- city Comptroller Scott Stringer
nual public-policy forum of the called for more diverse corpo-
National Action Network, the rate boards.
civil-rights organization of the Referencing an alleged rape
Rev. Al Sharpton. in Brooklyn, Public Advocate
Letitia James said we need to
make sure that “girls who walk
‘On his birthday, on into parks with their fathers
his holiday, we do will not be violated, their inno-
cence will not be taken away.”
what King does,’ Mr. Sharpton held court, Gov. Andrew Cuomo, the Rev. Al Sharpton and Mayor Bill de Blasio joined a Harlem march for a $15-an-hour minimum wage Monday.
said Mr. Sharpton. telling jokes and apparently rel-
ishing his power to tell elected packed with several hundred utive Director Donna Lieber- King would view the world to- around jobs and schools.
officials where to sit on stage. people, many jostling for space man. day. After the event, elected offi-
“On his birthday, on his holi- “This is Al Sharpton, not Al in the aisles. There was little The event also marked a “He would say, ‘What hap- cials and audience members
day, we do what King does,” Roker,” he joked, referring to disagreement, and mentions of rare appearance of both Mayor pened, after all these years?’” went outside to rally for the
Mr. Sharpton said at the organ- the NBC weatherman, when the coming election were never Bill de Blasio and Gov. Andrew said Mr. de Blasio. $15 minimum wage.
ization’s Harlem headquarters. asked whether the group would followed with names of candi- Cuomo, who have feuded over Both crime and stop-and- Audience member Nola Pen-
For several hours, elected of- hold an outdoor march in the dates. issues from homelessness to frisk are down, said Mr. de Bla- dergrass, 72 years old, said the
ficials and others evoked Dr. cold. Later, Mr. Sharpton told a “In New York these days, it Uber. The two men didn’t ap- sio, before mentioning efforts words she had heard were up-
King. Nearly all advocated for a story about being mistaken for seems like our politicians are pear on stage at the same time, to create affordable housing, lifting, although she was wait-
$15 hourly minimum wage, and Rep. Charles Rangel by a tripping over themselves, and although Mr. Cuomo did say free prekindergarten and paid ing for action.
most heaped praise on Mr. woman who wanted to donate sometimes each other, to seem that “Mayor de Blasio just sick leave. “It’s positive,” said the re-
Sharpton. $10,000. more progressive,” said New spoke, my best wishes to him.” Mr. Cuomo spoke of his retired nurse, “but we want to
City Council Speaker Melissa By the end, the room was York Civil Liberties Union Exec- Both reflected on how Dr. cent criminal-justice initiatives see the doing done.”
The sergeant was standing Moments after the shooting, same knife, police said Monday. JERSEY CITY
Greater near the intersection of Creston
Avenue and East 179th Street in
the two other men ran off, po-
lice said. Both were in their 20s,
Colin Kingston, of Geneseo, en-
tered Kelsey Annese’s apartment
Box Truck Collides
New York the Bronx’s Mount Hope area
when the three men approached
with one wearing bluejeans, a
red sweater and a white shirt,
around 6 a.m. Sunday near the
State University of New York at
With Light-Rail Train
A box truck and a light-rail
Watch just before 4 a.m., police said.
They allegedly demanded his
and the other, who wielded the
knife, wearing a black jacket, po-
Geneseo in upstate New York, po-
lice told reporters Monday. Mr.
train collided Monday morning
in downtown Jersey City, leav-
NYPD
wallet and phone, threatening lice said. Kingston, a former student at the ing six train passengers with
him with a knife. He handed A knife recovered from the —Mark Morales school, found Ms. Annese with minor injuries.
over his phone and was reaching suspect in the hospital. another student, Matthew NJ Transit said the train hit
for his wallet when the assail- NEW YORK STATE Hutchinson, of Vancouver, British the back of the truck after the
BRONX ants caught a glimpse of his police said. The injured man was Columbia, and killed them both, truck moved onto the south-
badge, police said. taken to St. Barnabas Hospital
Two Student Athletes police said. bound tracks when the train
Off-Duty Sergeant One of them said “shoot him, where he is listed in stable con- Killed in Knife Attack Ms. Annese, 21, was captain of had the right of way.
Shoots Assailant shoot him” in Spanish, and an- dition, police said. A 24-year-old man distraught the women’s basketball team at There were 38 people aboard
An off-duty New York Police other pulled out a gun, police The sergeant was taken to over a recent breakup stabbed to the college, located about 35 the train at the time.
Department sergeant shot and said. That is when the sergeant Jacobi Medical Center where he death his ex-girlfriend and a fel- miles south of Rochester. Mr. The accident caused minor
wounded a man who, along with reached for his off-duty firearm was treated for tinnitus caused low college athlete she was with Hutchinson, 24, played on the travel delays while it was under
two others, tried to rob him at and shot one of the assailants, by the sound of the gunshot, in her off-campus bedroom before hockey team. investigation.
knife point Monday, police said. an 18-year-old man, in the torso, police said. apparently killing himself with the —Associated Press —Associated Press
WMPO
WASTE MANAGEMENT PHOENIX OPEN
February 1 - 7, 2016 / The Greatest Show On Grass
BROADCAST THU. FEB. 4 | 3PM-7PM (ET) GOLF CHANNEL

SCHEDULE FRI. FEB. 5 | 3PM-7PM (ET) GOLF CHANNEL
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3PM-6PM (ET) NBC
SUN. FEB. 7 | 1PM-3PM (ET) GOLF CHANNEL
3PM-6PM (ET) NBC
www.wmphoenixopen.com
THEATER TUESDAY
in the fullness of time to a plicants vied for the program’s
Backstage venue yet to be decided. There
has been huge interest since the
five slots. This year the program
added more prerequisites, which
Buzz production opened, and it is just
a case of finding the right home
reduced the number of applica-
tions to 130. But the goal of the
at this stage.” selection process remains the
—Pia Catton same, said Ms. Goldberg: “to be
diverse in all ways, including
geographically.”
For Now, the Last New Website to Help —Pia Catton
Chance on ‘Lazarus’ Disabled Theater Fans
There’s still a way to see Da-
vid Bowie’s musical “Lazarus”: Theatergoers with disabilities
Tuneful Goodbye
Shell out $2,500 a seat for the will soon have a comprehensive Sunday brought the closing of
final performance on Wednes- source for information about the Broadway’s “A Gentleman’s Guide
day benefiting New York The- accessibility of Broadway shows. to Love and Murder,” winner of
atre Workshop’s artistic develop- A website called theatreac- the 2014 Tony Award for best
JAN VERSWEYVELD
ment and education efforts. cess.nyc, scheduled to launch by musical. As a send-off, the touring
As of Monday afternoon, mid-February, will note such ac- cast of the show filmed a parody
about 25 tickets still remained, commodations as assistive-listen- video set to the “Titanic” theme
according to the theater’s web- ing devices, open captioning and song, “My Heart Will Go On.”
site. About half were at the rela- autism-friendly shows, where “We were sending them
tive bargain price of $1,000 a special effects may be reduced Tickets are still available for Wednesday’s final performance of ‘Lazarus,’ starring Michael C. Hall. nothing but love, in a very ‘Gen-
seat, but the top-price tickets and the theater may offer a quiet tleman’s’ way,” said tour mem-
come with access to the after- area in the lobby. The website, a Playwrights Conference at the “With a playwright, they have bers Megan Loomis and Kristen
party. joint creation of the Broadway
Expanding Networks Eugene O’Neill Theater Center. a document they can shop that Mengelkoch.
If that’s too pricey, the wait- League and the Theatre Develop- For Theater Directors To expand the pool, the around,” said Ms. Goldberg, who With footage collected back-
ing game might be the way to ment Fund, was announced dur- From one Broadway season O’Neill Center joined with the leads the fellowship. “With direc- stage at the Kennedy Center
go. Producer Robert Fox didn’t ing a symposium Friday on mak- to the next, a small pool of di- Kennedy Center and other the- tors, it’s a lot about relation- and State Theatre in Minneapo-
comment on a Broadway run, of ing Broadway more accessible rectors seems to helm most ater partners in 2015 to launch ships. We hope we can build a lis, it’s worth a click to see what
which there has been talk, but and inclusive, hosted by the pro- productions. “There is a go-to the National Directors Fellow- much larger network for col- happens when things get
said through a spokeswoman: ducers of “Spring Awakening.” group,” said Wendy C. Goldberg, ship, which builds opportunity leagues and peers.” punchy on the road.
“The show will come to London —Caitlin Huston artistic director of the National for emerging stage directors. Last year, more than 360 ap- —Pia Catton
APP in a room, be inspired by who like YouTube. But streaming in the bunch: conceive, write
CASSANDRA GIRALDO FOR THE WALL STREET JOURNAL
is around you and make some- live video challenges partici- and cast a show in one hour.
thing? That is liberating.” pants to be entertaining in the For material, he scrutinizes
The mix of invitees started moment. the participants as soon as
Continued from page A17 as friends of Mr. Roth and his “The concept of a tradi- they arrive. Last week, he
ago and launched last March, friend, musician Robbie Roth tional variety show, rein- found inspiration in the intro-
Periscope attracts users who (no relation). The list has vented, is one of the most in- duction circle.
want to watch stars, chefs, co- grown to typically include star teresting and original ones “Hello, I’m Tovah Feldshuh.
medians, models or anyone performers, plus a choreogra- we’ve seen on Periscope,” said And I am your mother,” said
else broadcasting something pher and a visual artist. Occa- the app’s community manager the acclaimed stage actress,
that might not been seen oth- sionally, there is a curveball: a Lili Salzberg. whose television credits in-
erwise. Want to see Roger pastry chef baking goodies or Periscope said it has more clude “Crazy Ex-Girlfriend”
Federer practice before the a makeup artist painting David than 10 million users, com- and “The Walking Dead,” to a
Australian Open? It’s on Peri- Bowie-style lightning bolts on pared with Twitter’s 320 mil- round of laughs.
scope. faces. lion monthly active users. From that, Mr. Bernstein
The theater gathering, Periscope, the live-streaming app for sharing real-time video Mr. Roth said he hopes to Other shows have emerged, wrote a four-person comedy in
known as “Making Mondays,” spark free-flowing creative ex- such as Scope’s Got Talent and which a mother, played by Ms.
was broadcast from the iPhone preciation. Some take snap- five theaters, including “Kinky changes with organized the- Pass the Cast, but they have far Feldshuh, ambushes her daugh-
of host and emcee, Mr. Roth, shots and tweet to Mr. Roth, Boots” and “The Book of Mor- ater games like adding an un- fewer followers than Mr. Roth. ter, a feminist playwright, dur-
who is also president of Ju- who has 23,700-plus Twitter mon,” he doesn’t. Nor does he expected accent to a well- Now that Facebook has ing a public interview led by a
jamcyn Theaters. followers. just invite actors from those known character. added live-streaming video for nervous moderator.
Launched in October as a An early adopter, Mr. Roth shows. “I haven’t been able to do selected users, Mr. Roth said he Mr. Bernstein said he
weekly happening, “Making also launched Culturalist.com, The goal, he said, is to en- stuff like that since acting plans to broadcast to both plat- doesn’t expect to write a larger
Mondays” has nothing to sell, where participants to make courage idea-generating peo- school,” said singer-actress forms. That will add little, if play from the ideas generated,
though it does cultivate the- and share lists, as well as ple to be spontaneously cre- Orfeh, best known for “Legally anything, to the costs, which nor is he motivated by the net-
ater fans: Mr. Roth has more Givenik.com, a ticketing site ative together. Blonde.” “It hones a different are minimal, covering pizza, working power in the room.
than 4,500 Periscope follow- that gives 5% of each sale to “So many of us spend our part of your craft. We are not wine and paper for printing out “I am not going to create
ers, many of whom interact by charity. days in methodical, planned improv actors.” song lyrics and play scripts. ‘Death of a Salesman’ in 45
sending in ideas or tapping While Mr. Roth could use creativity or in sales of cre- If “Making Mondays” were The project’s resident play- minutes,” he said. “The lim-
the screen, which produces a “Making Mondays” to adver- ative endeavors,” said Mr. about polished presentations, wright, Jonathan Bernstein, berness is going to feed some-
heart that signifies users’ ap- tise the shows in Jujamcyn’s Roth. “But the ability to come it might thrive on a platform probably has the hardest job thing else.”
THE STORY IS
JUST THE START
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ARTS & ENTERTAINMENT
Off-Beat Options for a Changing Audience

BY CHARLES PASSY hit series “Gilligan’s Island,”
for example, offers an eve-
Joel Pierson has a mes- ning of memories billed as
sage for concert hall and “What Would Mary Ann
theater bookers: Who needs Do?”
another string quartet, John Castonia, Ms. Wells’s
dance troupe or touring booking agent, says the ac-
Broadway show when you tress is a solid draw on the
can hire a jazz combo play- arts-center circuit: “She’s 76
ing music from Bugs Bunny and she’s still smoking hot.”
cartoons? Like others in the indus-
Mr. Pierson is the founder try, Mr. Castonia said it isn’t
and keyboardist of the surprising that the perform-
Queen’s Cartoonists, a six- ing-arts world has increas-
man New York band that ingly emphasized popular
dedicates itself to playing entertainment and variety
tunes from swing-era anima- acts. With the older crowd of
tions, along with similarly patrons who heavily favored
silly and fast-paced fare classical music, ballet and
from “The Simpsons,” the traditional theatrical fare
Muppets shows, “Star Wars” now dying off, presenters are
and more. trying to court the baby
“I think we’d be a great boomers and younger gener-
novelty act,” said Mr. Pier- ations.
son, speaking shortly before “The audience has
the band launched into a 30- Jessica Sherr, left, creator of the one-woman show, ‘Bette Davis Ain’t For Sissies’; changed,” Mr. Castonia
minute Saturday afternoon members of the Ukrainian ‘ethno chaos’ band, DakhaBrakha, above; Tsering added.
set designed to showcase Phuntsok creates a sand mandala in the Mystical Arts of Tibet booth, below left; Today’s patrons have a
and hopefully sell their con- and attendees of the Association of Performing Arts Presenters conference. “much broader appetite,”
cept. said APAP President Mario
The occasion was the an- Garcia Durham, and they
nual conference of the Asso- place fewer boundaries on
ciation of Performing Arts what is considered art.
Presenters (APAP), a winter While traditional classical
New York gathering where and dance artists are still
some 3,600 attendees from well represented on the ex-
the U.S. and more than 30 hibit floors and in the per-
countries—mostly program- formance showcases, it isn’t
STEVE REMICH FOR THE WALL STREET JOURNAL (4)

mers for theaters and con- unusual to see even dyed-in-
cert halls—come to scope the-wool traditionalists ven-
out acts that might help ture into novelty-act terri-
them fill their performance tory.
calendars in the seasons Over the past few years,
ahead. Melanie Gall, a trained opera
The conference, the per- singer who has performed
forming-arts industry’s big- widely in Europe has devel-
gest trade show, concludes oped “Stitch in Time,” a one-
Tuesday, with most events woman cabaret-style show
taking place at the New York featuring songs all about
Hilton in Midtown. knitting.
To spend any time at Ms. Gall came to APAP
APAP, be it walking the ex- last year at a personal cost
hibit floors where some 370 Gone are the days when call themselves “the masters named Janice Martin who agent for Benise: “His name of $6,000, which covered all
booking agents set up shop arts centers fed their pa- of bagrock,” to Steve Trash, performs as an aerial violin- is Ron and he’s from Wiscon- her convention expenses.
or attending any of the 1,000 trons a steady diet of fairly the self-proclaimed “rockin’ ist and Benise, a one-name sin.” She says she wrangled so
trade-oriented performance highbrow fare. Now, just eco hero” who builds his mu- guitarist who bills his Span- The talent roster also in- many bookings for her off-
showcases at the hotel or about anything goes. sic and magic-filled show ish-themed show as “the cludes past TV and film stars beat show, she didn’t have
other venues throughout the That “anything” ranges around the theme of gar- Latin Riverdance.” who fashion shows recount- time to attend this year.
city, is to see a kind of from the Red Hot Chilli Pip- bage. Such hype comes with the ing their days of glory. Dawn “I even got one gig from
“America’s Got Talent” in ers, a nine-piece bagpipe en- Also featured: a Juilliard territory for APAP hopefuls, Wells, the one-time starlet somebody I met in the bath-
person. semble from Scotland who graduate and Army veteran said Nate Linegar, a booking who played Mary Ann on the room,” she said.
HEARD & SCENE
Sophisticated Street Sense at Bowery Mega-Lounge

Whether or not New York
City needs another mega-
lounge slash restaurant, it’s
getting one in Vandal, in the
former space of Finale and
General at 199 Bowery.
The concept, said Rich
Wolf, a partner in the Tao
Group, came to
him when he
was walking
down the
street one day.
What if you
MARSHALL combined
HEYMAN street art and
street food?
Mr. Wolf
mentioned the idea to his
friend Hush, a street artist
who worked on the art at
the downtown Tao, another
mega-lounge slash restau-
rant on Ninth Avenue in
which Mr. Wolf is involved. The new restaurant with a street-art-meets-street-food theme, Vandal, above, opened Friday, bringing out the likes
“Hush said, ‘That is such a of Peter Sarsgaard and Maggie Gyllenhaal, below; Allison Williams, below right; and Chanel Iman, above right.
great idea and I want to be
part of it, but I want you to
let me curate it,’” Mr. Wolf
recalled in an interview. “I
said, ‘Done. You have 100%
artistic control.’”
Vandal, which opened on
Friday with a splashy party
and a slew of celebrity
guests, including Maggie
Gyllenhaal and Peter Sars-
gaard, Chris Noth, Chanel
Iman, Matt Dillon and Alli-
son Williams, features seven
murals and 11 hanging pieces
of art by artists like Shepard
GETTY IMAGES FOR VANDAL (4)
Fairey, Apexer, Tristan

Eaton, Eelus, Vhils, Will Bar-
ras and Hush himself.
When conceiving and de-
signing a restaurant, said
Mr. Wolf, “It’s usually about
what’s the tile you’re using
on the floor, what kind of
wood are the tabletops,
what color is the fabric on now. If anything I’m going to conceit. “I’m taking things “And there were all these gurt; lobster and sweet po- flour and a lot of olive oil.
the banquettes, but this is add on. There are still nu- that are iconic street foods windows you could walk by tato dumplings with coconut He added that one of the
completely different. It’s a merous walls and opportuni- from all over the world and and buy arancini,” or rice milk and mushrooms, and benefits of having a large
monster art gallery where ties for ‘canvases’ left.” putting them through the balls, he recalled. “I thought, chicken katsu and spherical place like Vandal is “it
installations are entire walls. The street-food element prism of my experiences.” Let’s do a cacio e pepe aran- shaped Hong Kong egg waf- makes it special and a desti-
The story behind the artists comes courtesy of Chris San- As research, Mr. Santos cini.” fles, served with collard nation.”
and the work is so much tos, a chef who appears on traveled to 14 countries in Other menu items, split greens. “This is inventive, innova-
more interesting than wall- the Food Network series nine weeks, he said. “And we between “small” “medium” As if all of the above tive and fresh,” said Mr.
paper.” “Chopped” and opened the cooked 175 new dishes to get and “large” plates, include a aren’t enough, Mr. Santos, Wolf. “How many more Ital-
Originally Mr. Wolf imag- nearby Stanton Social 10 down to the 40 on this knish Reuben with corned who is 45 years old, is also ian restaurants can you go to
ined that the artwork would years ago and Beauty & Es- menu.” beef, sauerkraut, Swiss serving pizza for the first in New York City?”
rotate, “but I love everything sex five years ago. For instance, Mr. Santos cheese and Thousand Island time in his career. “This has got to be one of
so much it’s hard to imag- “Speaking specifically to was in Rome thinking about dressing; a shawarma salad “I’ve developed a unique the biggest spaces in New
ine,” he said. “We have a 17- the food, I’m not serving his favorite pasta, cacio e with falafel croutons; grilled crust you can’t get anywhere York,” added Mr. Santos.
year lease. I’m not thinking meat on a stick,” said Mr. pepe, which is made with Chilean sea bass tacos; else,” he said, which is “It’s 22,000 square feet, but
of changing anything right Santos of the “street food” cheese and pepper. za’atar bread with spiced yo- crispy, made with semolina it feels very intimate.”
SPORTS
Heard On
The Field
AL BELLO/GETTY IMAGES
(T-B) ANTHONY GRUPPUSO/REUTERS, SETH WENIG/ASSOCIATED PRESS

Pierre-Paul Undergoes
Another Hand Surgery
Even when Giants defensive end
Jason Pierre-Paul recovered enough
from his July 4 fireworks accident
to return to the football field, he
said he knew he would still need to
have more surgery to return to full
effectiveness.
Pierre-Paul on Monday morning
posted a photo of himself on Insta-
gram showing himself in a bed
wearing a hospital gown, with a Knicks forward Carmelo Anthony scored 19 points in Monday’s win over the Sixers. Below, Kristaps Porzingis reacted after tweaking his right foot.
caption that said “#SurgeryDay.”
Knicks Straddle Mediocrity Line

While Pierre-Paul had his right
index finger amputated after the ac-
cident, he said another operation
would help him regain more motion
in his mangled middle finger.
“I have one more surgery,” Pierre- Carmelo Anthony returns Still, with the Knicks just a few
Paul said on Jan. 4, the day after games beyond the midway point of
the regular season ended. “I don’t to help the Knicks beat the the season, the past few days have
know when I’m going to do it, but Sixers, but Porzingis exits highlighted some of the concerns
I’m going to do it as soon as possi- about this club, as it prepares for a
ble. I’m pretty sure you’ll hear about early with a foot injury possible playoff push in the second
it. That’s basically it for me as far half of the season.
as rehab.” BY CHRIS HERRING We don’t know yet whether
Pierre-Paul, the Giants’ best pass Fisher’s rotations, which were a bit
rusher, missed half of the 2015 sea- Fans watching Monday after- odd again Monday after seemingly
son as he recovered from his inju- noon’s holiday matinee at Madison having found a set group before, will
ries, which helps explain why the Square Garden saw the best and become more consistent. And after
team finished last in the league in worst of the Knicks in the team’s touting the NBA’s best 3-point de-
defense. 119-113 win in double overtime over fense for much of the season, the
“When Jason was not able to get the Philadelphia 76ers. Knicks are seeing teams beginning to
in there, had the accident, obviously New York (21-22) got another solid connect from deep, and their very
it’s hard to find guys of his caliber game from 7-foot-3 rookie Kristaps average perimeter defense, more
to come in and help with your pass- Porzingis, who had 16 points on 7- consistently.
rush. That’s an important part of of-11 shooting with 12 rebounds. But It’s also fair to wonder whether
the National Football League, you his outing was cut short when he left the Knicks, who’ve enjoyed rela-
have to have some pass-rushers,” the game in the fourth quarter after tively good health to this point, can
Giants general manager Jerry Reese tweaking his right foot while going continue to avoid the sorts of inju-
said during a news conference on for an offensive rebound. ries that have plagued them in years
Jan. 5. Beyond that, forward Carmelo An- past.
Pierre-Paul’s return in November thony, in his return from a two-game Anthony, for instance, has gener-
helped the Giants generate more absence to due to a sprained right ally been healthy following his re-
pressure on opposing quarterbacks, ankle, struggled to get any lift on his turn from knee surgery in February,
but he tallied only one sack in eight shot. While he hit the Knicks’ big- and he’s played some of the most
games, after totaling 12.5 in 2014. gest shot of the game, a late 3- well-rounded basketball of his career
Pierre-Paul still had his blistering pointer to tie the score and send the lately. But his absences so far have
speed, but had his right hand heav- game to overtime, he finished 7- proven costly to the Knicks, who are
ily taped, as if it were a club. With of-28 from the floor for 19 points, 0-4 in games without their star this
no grip in that hand, he was a less the first time in his 13-year career season.
effective tackler. he’s finished with less than 20 Porzingis has played in every
The fireworks injury has cost points while taking that many shots New York’s inability to keep speedy trying all game to make adjust- game this season after having a
Pierre-Paul millions of dollars, and in an outing. He also had his shot guard Ish Smith out of the paint. ments,” said Knicks coach Derek flurry of nicks and bruises during
might cost him even more this off- get blocked six times, a good indica- Smith was just 8-of-28 for 16 Fisher. The team has had problems summer league and training camp.
season. The 27-year-old defender tion that he wasn’t getting enough points, but he consistently dribbled containing opposing point guards Yet he’s had two separate ailments
played 2015 on a prorated, one-sea- elevation when trying to shoot. past point guard Jose Calderon, al- for years. in recent days, between his right
son contract and is set to become a “I wasn’t able to shoot with bal- though he couldn’t finish over the The Sixers own the league’s worst shoulder and now his right foot.
free agent in March. Team president ance or push off. Things I’m nor- Knicks’ 7-footers at the basket. The record, but New York showed grit to Foot injuries are always worth
and co-owner John Mara said on mally capable of doing I wasn’t able Sixers (5-38) however, feasted off come back and take the lead from monitoring with 7-footers; particu-
ESPN radio earlier this month that to do,” said Anthony, who otherwise several of Smith’s misses, dunking them late. And the Garden erupted larly ones with Porzingis’s athleti-
Pierre-Paul “showed us enough to played a balanced game, logging them after Porzingis and Robin Lo- after Anthony’s game-tying triple. cism. But the 20-year-old says he
want him back” but that the price seven assists while logging a game- pez were forced to help out near the Rather than relying solely on An- expects to play in the next game, on
had to be right. high 49 minutes in his return. free-throw line. thony, who had tired legs, the Knicks Wednesday.
When asked on Jan. 4 if he Also of concern: The Knicks squan- Smith finished with 16 assists, the managed to spread the ball around No one knows yet whether these
thought he would be back, Pierre- dered an 18-point advantage, and almost any player has posted against during the overtimes—with scores Knicks are good enough to make the
Paul said, “I don’t know where I’m most lost the game along with it. the Knicks so far. coming from Lopez, Lance Thomas playoffs yet.
going to be. Hopefully I am [here] Philadelphia pulled off a 22-point “We obviously had a difficult and Arron Afflalo—that epitomized But each of these questions fig-
but wherever I am at I’ll be ready to swing to take a four-point edge in the time containing Ish Smith and keep- the diversified offense New York has ures to play a key role in determin-
go.” —Stu Woo final four minutes, largely because of ing him out of the paint. We were displayed in recent weeks. ing whether they will.
For the Nets, a Healthy Brook Lopez Is Key to Team’s Future

Nothing seems to be going right
for the Nets. They are the second-
worst team in the Eastern Conference The Man in the Middle
and won’t have a first-round pick in How centers this season who average 30-plus minutes per
2016. That’s because the team traded game rank in win shares per 48 minutes. Win shares
their likely lottery choice to the Bos- estimate a player’s offensive and defensive contribution to
ton Celtics back in 2013. The Nets are team success. (.100 is average.)
still seeking a permanent coach and a MINUTES/ WIN SHARES/48
new general manager who must fig- PLAYER GAME MINUTES
ure out a way to rebuild a weak ros- DeAndre Jordan LAC 33.1 .211
ter without draft picks (the Nets Andre Drummond DET 34.4 .160
don’t own rights to their first-round Greg Monroe MIL 30.3 .155
pick until 2019).
Nikola Vucevic ORL 30.8 .153
Take a Number
Dwight Howard HOU 33.1 .152
Rudy Gobert UTA 31.9 .150
DeMarcus Cousins SAC 33.3 .133
Free agency is the only path, given Brook Lopez BRK 33.7 .118
the Nets are projected to have about Marcin Gortat WAS 31.5 .114
$32 million in cap room this off-sea- Marc Gasol MEM 35.0 .098
son. The one piece of good news for
Source: Basketball-Reference
the team this season is that the
team has a big lure in 7-foot center
Brook Lopez, who recently played his
100th straight game, including last in nature. NBA who log at least 30 minutes. the advanced NBA statistic of win this year would win about 48 games
year’s playoffs. That could hardly have Even better, Lopez is averaging But being the Nets, the news with shares per 48 minutes is just .118 (av- (the Nets are on pace for just 22
been expected. The last time Lopez 33.7 minutes a game entering play on Lopez isn’t all good. He’s not playing erage is .100), according to Basket- wins).
had a similar injury-free streak was Monday, third-most after the Griz- that well relative to his career num- ball-Reference. This measurement of Lopez’s career WS/48 remains
back in 2010-11. He has missed signif- zlies’ Marc Gasol (35.0) and the Pis- bers, shooting a career-worst .487 total offensive and defensive perfor- much better at .136, which works out
icant time since, due mostly to foot tons’ Andre Drummond (34.4). There from the field. Mostly due to this re- mance means that a team of players to a 56-win team.
injuries that were feared to be chronic are only 10 other centers in the entire duced efficiency, his performance in all contributing exactly as Lopez has —Michael Salfino
BRAD PENNER/REUTERS
MEDIA & MARKETING B5 | CFO JOURNAL B6 | CROSSWORD B6
SpaceX Rocket Fails

BUSINESS & TECH. Private Equity Becomes
To Stick the Landing Hot Acquisition Source
SPACE | B3 CFO JOURNAL | B6
© 2016 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | B1
Outsider Is Tapped to Lead Adidas Engineer

BY ELLEN EMMERENTZE JERVELL
Warned in October. Henkel had an- Henkel, its share price almost try experience.
BERLIN—Battered German
sportswear icon Adidas AG is
nounced Mr. Rorsted’s resigna-
tion earlier in the day.
Adidas’s current CEO, Her-
tripled.
Under Mr. Hainer’s leader-
ship, the company had lost
A big uncertainty is
whether Mr. Rorsted’s pack-
aged-goods acumen can help
Samarco
betting that an executive bert Hainer, will leave at the ground in North America to its Adidas once again set trends
Over Dam
CHRIS RATCLIFFE/BLOOMBERG NEWS

steeped in laundry detergent end of September, six months biggest rival, Nike Inc., and and be “cool” among young
and computers can help it be- before his contract was due to newcomer Under Armour Inc. adults. Nike briefly hired a
come cool again in the giant
U.S. market.
Adidas said Kasper Rorsted,
end.
Adidas’s stock closed 6.3%
higher on the news, after ris-
Adidas currently holds the No.
3 spot in the U.S. sporting-
goods market.
data-focused former con-
sumer-products executive to
its top post, but his two-year
That Burst
currently chief executive at ing more than 11% during Adidas’s appointment of a tenure is widely considered a BY PAUL KIERNAN
Henkel AG, a German maker of Monday’s trading session, with financially shrewd consumer- failure.
cleaning products, adhesives investors hoping Mr. Rorsted products executive stands in Adidas’s effort to become RIO DE JANEIRO—Brazilian
and beauty-care items, would could restore growth at the contrast with Nike and Un- cool again and regain market mining firm Samarco Minera-
become a board member at company. der Armour, whose CEOs share has included moving its Henkel’s shares almost tripled ção SA was alerted to “severe”
Adidas as of August, and CEO In his eight years leading have extensive sports-indus- Please see ADIDAS page B4 during Kasper Rorsted’s tenure. structural problems in one of its
dams a year before it collapsed
but didn’t take appropriate mea-
‘Mom Mobile’ Makes an Unlikely Comeback

sures to fix them, said an engi-
neer who worked on the dam.
Dam engineer Joaquim Pi-
menta de Ávila said he was con-
Sleeker designs, sulting for Samarco when, in
September 2014, he inspected a
snazzy accessories crack in its Fundão waste-stor-
help give the minivan age facility. He believed it indi-
cated the beginning of a break
renewed appeal and said he recommended that
Samarco step up monitoring
BY ERIC SYLVERS and reinforce the Fundão dam
with a buttress.
The minivan—the often-de- About 14 months later, the
rided vehicle of choice for mil- dam collapsed, releasing an
lions of American parents— avalanche of sludge that bur-
seemed destined to be a ied a rural village, killed at
footnote in automotive history least 17 people and traveled
only a few years ago, as buy- more than 400 miles. Consid-
ers flocked to sport-utility ve- ered one of Brazil’s worst en-
hicles and crossovers. vironmental disasters, the Nov.
But snazzier accessories, 5 incident has triggered a
sleeker designs and the endur- criminal investigation and a
ing draw of roomy interiors roughly $5 billion civil lawsuit
for families with children has by authorities against Samarco
(TOP) JEWEL SAMAD/AGENCE FRANCE-PRESSE/GETTY IMAGE; (BOTTOM) FIAT CHRYSLER
given the “mom mobile” a last- and its parent companies, min-
ing, though reduced, appeal. ing giants Vale SA and BHP
Last week, Fiat Chrysler Billiton Ltd.
Automobiles NV, which cre- 2017 Pacifica Samarco disputed Mr. Pi-
ated the modern minivan three • Foot-operated, power menta de Ávila’s account and
decades ago, unveiled an all- sliding doors and tailgate said it followed his recommen-
new model it calls the Pacifica. • Two 10-inch touch-screen dations. In an interview Sun-
To gear up, Fiat Chrysler displays for passengers day, company lawyer Maurício
spent $2 billion to prepare its • Second-row seats tilt Campos Júnior said Samarco
Windsor, Canada, factory to forward for access to third- officials weren’t warned about
build the new model, a sign of row seats in this hybrid. an “imminent” rupture from
its confidence in the minivan’s any of their consultants.
future. Fiat Chrysler also un- 1984 Dodge Caravan “Cracks or surges can occur
veiled a plug-in hybrid version • Passenger-side in any dam,” Samarco said.
that will go into production sliding door only “The operator’s duty is to re-
later this year. • Manually operated port them, evaluate them and
The Italian-American auto treat them adequately, with
passenger and
maker’s fresh investment is a reports, technical recommen-
hatchback door
contrast with larger rivals dations and contracted proj-
• Third-row seat back
General Motors Co. and Ford ects, as Samarco always did.”
Motor Co.’s abandonment of
folded down to make a shelf. The company didn’t say
the category in the U.S. years whether it constructed the
ago. But the Pacifica still faces buttress Mr. Pimenta de Ávila
challenges from Toyota Motor Calif., automotive research dren there will be sliding says he recommended, but Mr.
Corp.’s Sienna minivan and firm AutoPacific Inc. SUVs and The Long Haul doors,” said Rebecca Lindland, Campos said Samarco was in
Honda Motor Co.’s Odyssey. crossovers rose to account for Fiat Chrysler, which sells the lion's share of minivans in the U.S., is a senior analyst at automotive the process of strengthening
Sienna’s U.S. sales last year nearly 36% of all light vehicles betting big on the product category with the new Chrysler Pacifica. data provider Kelley Blue Book. the dam at the time it failed.
were up 10% from 2014, and sold in the U.S. last year. Minivans may never shake Like most tailings dams,
Odyssey sales were up 4%. “The minivan market is not 1.5 million their reputation as being bor- Fundão essentially was an
The minivan burst onto the what it used to be, but with 1.2 ing and purely functional, earthen embankment, built to
scene in the 1983 in the form of GM and Ford dropping out in stodgy haulers that work contain waste from Samarco’s
the boxy Dodge Caravan and the last decade, the pieces of 0.9 mostly for middle-income fam- iron-ore mine. Failures of such
Plymouth Voyager. The segment the pie have gotten a little ilies. But analysts say there structures often occur via a
0.6
boomed in the 1990s, peaking larger for the players that are Others are signs that the current an- sliding phenomenon called liq-
in 2000 when car makers sold still in the segment,” said 0.3 315,400 nual demand, at about 500,000 uefaction, typically when the
nearly 1.4 million in the U.S. Dave Sullivan, head of product Fiat Chrysler units a year, could hold steady soil becomes saturated with
Volume has since plunged analysis for AutoPacific, who 0 191,000 well into the next decade. water, engineers say.
by two-thirds, to half a million ferries his children around in a 1987 ’90 ’95 ’00 ’05 ’10 ’15 As millennials start to have Mr. Pimenta de Ávila said he
last year, according to Tustin, Nissan Quest minivan. Source: AutoPacific THE WALL STREET JOURNAL. children, a generation that recommended that Samarco
As the U.S. minivan market went to soccer practice and construct a buttress at the base
EXPLORE ONLINE has shriveled, the relative still held the lion’s share of The family-friendly vehicle’s family outings as passengers of the dam and design it to be
dominance of Fiat Chrysler’s the U.S. business. classic three rows of seats, in the vehicles will return as strong enough to hold it even
View a video of U.S. unit, the former Chrysler Toyota had 27% of the mar- ample storage space and slid- prime buyers, says AutoPa- in this worst-case scenario.
WSJ
.COM
the Pacifica at
the auto show in
Detroit, at
Group LLC, has increased. Al-
though Chrysler minivan sales
fell 30% last year as a factory
ket and Honda 25%, while Nis-
san Motor Co.’s and Kia Mo-
tors Corp.’s percentage shares
ing doors have contributed to
its utility—and may guarantee
its longevity.
cific’s Mr. Sullivan.
Minivans also continue to
have a measure of success
Mr. Pimenta de Ávila, who
is well regarded in Brazil as
perhaps the country’s fore-
WSJ.com/Business. overhaul limited production, it were in single digits. “As long as there are chil- Please see MINIVAN page B4 Please see MINER page B2
In Securing Our Data, Netflix’s Competitors Band Together

The Weak Link Is Us BY SHALINI RAMACHANDRAN
AND NICK KOSTOV
When Netflix Inc. won

“ ‘Penny Dreadful’ was a big
battle; we absolutely wanted it,”
a person familiar with Canal
Plus’s thinking said. “On our
T
he computer systems an investigation of the minds rights to premiere gothic TV own, we couldn’t do it anymore.”
that run our world— and methods of con artists. drama “Penny Dreadful” in Similar discussions are tak-
the ones that secure Almost as soon as there were several European countries, ing place among Netflix’s ri-
our financial information, wires, there was wire fraud. local media companies that vals elsewhere. Streaming ser-
protect our privacy and even Fred and Charley Gondorf, lost out were miffed. vice Viaplay in the Nordics has
keep our power grid run- two broth- They were growing increas- been talking with Australian
ning—all have a critical, un- ers who op- ingly frustrated that the stream- streaming service Stan, Light-
patchable weakness. It is the erated in ing juggernaut has been scoop- box in New Zealand and Hulu
humans who use them. New York ing up exclusive rights to top in the U.S. with hopes of form-
As the toll of data around the shows as it pursues an aggres- ing a bidding alliance in time
breaches and hacks mounts, turn of the sive global expansion, locking for May’s annual screenings of
and the specter of a “cyber KEYWORDS 20th cen- them out in their home markets. new shows for international
Pearl Harbor” looms, it is CHRISTOPHER tury, or- It was time to mount a response. buyers in Los Angeles, people
JONATHAN HESSION/SHOWTIME
worth asking: how do we de- MIMS chestrated Shortly after the “Penny close to the talks say.
fend against a breach not of a scheme in Dreadful” deal in late 2014, se- Europe’s Sky, which effec-
our computers, but our which they nior executives at French pay- tively is controlled by 21st
minds? convinced people that a dis- television group Canal Plus Century Fox, has held similar
This problem has plagued gruntled telegraph operator and rival operator Sky PLC conversations with Canada’s
every network since the dawn would tip them to results of met to discuss jointly bidding Bell Media and Australia’s Fox-
of connectivity, says Maria horse races before the infor- for TV shows, a way to coun- tel in recent months, other
Konnikova, author of the new mation reached betting ter Netflix, people familiar people involved say. Various
book “The Confidence Game,” Please see MIMS page B4 with the discussions say. Please see NETFLIX page B5 Eva Green and Josh Hartnett in the series ‘Penny Dreadful.’
B2 | Tuesday, January 19, 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
Abercrombie & Fitch...C6
ABSA Bank..................C2
Fannie Mae..................C6
Fiat Chrysler
Automobiles ............. B1
N
Netflix....................B1,C1
Nissan Motor..............B1
Airlines Soar as Labor Costs Take Off
Fitch Ratings...............C2 BY SUSAN CAREY leaders haven’t recom-
Adidas ......................... B1 P
Ford Motor..................B1 mended the deal.
Airbus Group...............B4 Pilgrim's Pride ............ C6
Freddie Mac.................C6
U.S. airlines are expected U.S. carriers, which are
American Airlines Group Procter & Gamble.......B4 to report strong fourth-quar- contending with heightened
.....................................B2 G
R ter financial results and re- domestic-fare competition
Amundi........................C3 General Mills...............B6 cord annual profits. But in- and the effects of the
Renault........................B4
Anheuser-Busch InBev General Motors...........B1 vestors may fret about a strong dollar on interna-
Revlon ......................... B3
..................................... C1 Gramercy Funds byproduct of that success: tional routes, are trying to
Russell Investments...C1
Apple...........................B4 Management.............C3 rising labor costs. temper worker expectations.
S
Atlas Mara .................. C2 H As fuel prices have They also are attempting to
B SABMiller....................A2 plunged, employee pay and revamp contractual work
Henkel ......................... B1 Samarco Mineração....B1 benefits have returned as rules to boost productivity,
Bank of America.........C1 Honda Motor...............B1 Sanderson Farms........C6 airlines’ big- find savings in employee
Barclays.......................C1 I Sky...............................B1 THE WEEK gest expense benefits and, in some cases,
Barclays Africa Group.C1
Iran Air........................B4 Southwest Airlines .... B2 AHEAD item. Be- reduce profit-sharing pay-
B&G Foods...................B6 cause the in- outs or ban such variable
J Standard Chartered .... C1
BHP Billiton................B1 dustry—which pay altogether.
Suncor Energy.............B2
BNP Paribas................B4 J.C. Penney..................C6 not too long ago was mired American hasn’t allowed
Syncrude Canada........B2
C J.M. Smucker..............B6
T in red ink—appears to be profit-sharing in new con-
Canadian Oil Sands .... B2
J.P. Morgan Chase minting money now, its pi- tracts since its late 2013
...........................B4,C1,C6 TJX...............................C6 lots, flight attendants, me- merger with US Airways. In-
Caterpillar ................... B3 Toyota Motor..............B1
K chanics and other workers stead, it has agreed to signif-
Centerview Capital.....B6 TPG Capital.................B6 are demanding to be re- icant raises, arguing that
China UnionPay...........C6 KB Home.....................A3 Tyson Foods ................ C6 warded for aiding in its turn- employees want defined pay
Citic Group .................. C5 Kia Motors..................B1 V around. They also want to increases and certainty in
Citigroup.................C1,C2 KKR..............................B6 recoup concessions they their paychecks.
Verizon Communications
Coca-Cola ............... B4,B5 L made when companies went Its 15,000 pilots early last
.....................................B4
CrowdStrike ................ B4 through bankruptcy-court year received immediate
L Brands......................C6 Vestar Capital Partners
D LKQ..............................B6 protection. raises of 23%, and American
.....................................B6
Delta Air Lines ........... B2 M
Delta Air Lines Inc. kicks at the time said the new
W
off the airline reporting sea- pact would boost its costs by
E-F MacAndrews & Forbes Wayne Farms..............C6 son Tuesday, with others an- $650 million in 2015. Flight
eBay.............................B4 .....................................B3 Wells Fargo.................C6 nouncing results during the attendants got immediate
Endo International......B6 Macy's ......................... C6 WEX.............................B6 next few weeks. Deutsche 14% increases.
Facebook................B3,B4 Morgan Stanley .......... C1 Worldpay Group..........C6 Bank estimates that aggre- American’s expenses for
gate pretax profit for the wages and benefits in the
INDEX TO PEOPLE U.S. carriers in the fourth

quarter soared 44% from a
year earlier to $5.2 bil-
first nine months of 2015
rose 11% from the prior-year
period to $7.1 billion. Fuel,
A G Lowry, Don..................B2 lion, due largely to oil’s fall formerly its biggest cost, fell
Acosta, Melba.............C2 Ghosn, Carlos..............B4 M to a 12-year low, which has about 40% to $5.8 billion.
ANASTASIA VASILAKIS
slashed fuel tabs. Delta, the second biggest
Aedo, Ed......................C3 Gorman, James...........C2 Morris, Nicola.............B6
Deutsche Bank also esti- carrier, has only one major
Allier, Marie-Anne......C3 Griffin, Kenneth..........C5 Moynihan, Brian..........C2 mates, though, that industry union, its pilots. They re-
Andresen, Gavin..........C6 H P wage costs rose 11%, or $909 jected a three-year deal last
B Hainer, Herbert...........B1 Perelman, Ronald O....B3 million, in the latest period, summer that would have
Berthelot, Philippe......C3 Hastings, Reed............C1 Peterson, Rick.............C2 after a year-over-year in- raised pay by more than 20%.
crease of $964 million in the Among the aspects of the
C Hearn, Mike.................C6 R
third quarter. richer contracts to mollify bad and made it possible proposal they didn’t like,
Henry, Shawn ............. B4
Campos, Maur cio......B1 Rorsted, Kasper..........B1 “We are expecting this unions and, at merged air- for American to not only many pilots said later, was
Hsu, John .................... C6
Canter, Michael...........C6 S cost line to experience lines, to engender team survive but now thrive. It’s Delta’s proposal to limit a
Humala, Ollanta..........C3
Cantwell, Robert.........B6 Sauermilch, Thomas...B6
above-average growth during spirit. high time they receive their profit-sharing plan that had
Hunt, Scott..................C6 the next several years as Credit Suisse estimates just rewards…Nothing less become highly lucrative due
Cecala, Guy..................C6 Singer, Paul.................C3
Cerf, Moran.................B4 J union contracts are renegoti- that 18 contracts are open will suffice.” to their employer’s strong
Smith, Win..................C2
Chow, Koon ................. C3 Johnson, Denise ......... B3 ated,” Deutsche Bank said. for renewal at U.S. carriers, American has said it wants results. The plan contributed
Squarcia, Paul.............C2
Credit Suisse ex- covering an array of work its employees to have indus- to a 16.6% boost in pilots’
Coffee, John................C3 K Staley, Jes...................C1 pects 2016 to be the sev- groups. Unions know this is try-leading contracts. This compensation in 2014 and
D Konnikova, Maria........B1 Sym, James.................C3 enth consecutive year of in- the best opportunity in years would be the last big group to likely surpassed that in 2015.
Davidson, Andrew.......C6 Koskas, Thierry...........B3 T dustry profitability, marking to win back lost wages and get a post-merger joint con- Most of Delta’s nonunion
Davies, Zoso................C1 Koum, Jan...................B3 Tarhuni, Nizar.............B6 the longest positive cycle in benefits and move their tract, giving the carrier cost ground workers and flight
Dongming, Wang ........ C1 Kuhn, Wolfgang..........C3 W-Z U.S. airline history. But, in a members up the pay scale. certainty for the next several attendants received 18% in
Dupuy, Chris................C2 Kuniskis, Tim..............B4 research note, it also ob- They have been pushing for years, a spokesman said. pay increases last year. But
Wang Qishan...............C5 served that in the last ex- contracts that improve on Some unionized groups— Delta unilaterally trimmed
F L Williams, Steve..........B2 tended up-cycle in the late those of similar groups at ri- including pilots and flight at- the formula for profit-shar-
Farley, Frank ............... D2 Laughlin, Terry............C2 Wilson, Fred................C6 1990s, “generous labor con- val carriers. tendants at Southwest Air- ing payments to those
Frey, Glenn..................B5 Lee, Linda-Eling..........B6 Zarcone, Nick..............B6 tracts led to rising wage ex- The union coalition that lines Co.—overwhelmingly groups, effective in 2017.
penses that weighed heavily represents 30,000 mechan- rejected significant proposed The carrier said at the
on industry profitability af- ics and ramp workers at raises last year in the hopes time that it was responding
Canadian Oil Sands ter the cycle turned in 2001.”

In the ensuing decade,
nearly every big U.S. carrier
American Airlines Group
Inc., the largest carrier by
traffic, made its stance
of doing better.
Southwest ground work-
ers begin voting this month
to employee feedback by
putting more money in base
pay, increasing compensation
Accepts Suncor’s Offer filed for bankruptcy, which

facilitated big cuts in labor
costs. Now those savings are
clear last month at the start
of talks on a joint contract:
“It was these workers who
on a pact that would raise
pay by 20% over five years.
While that sounds like a
security and predictability.
The Week Ahead looks at

BY JUDY MCKINNON The boards of both compa- waning as carriers agree to sacrificed when times were healthy increase, union coming corporate events.
nies support the revised bid,
Suncor Energy Inc. and Ca- they said in a joint written
nadian Oil Sands Ltd. said
Monday that they had reached
a friendly deal after Suncor
agreed to raise the takeover
statement.
“We believe this transaction
delivers excellent value to COS
shareholders while maintain-
MINER
offer for its rival to roughly ing Suncor’s commitment to Continued from the prior page
4.24 billion Canadian dollars capital discipline,” Suncor most tailings-dam engineer,
(US$2.92 billion). Chief Executive Steve Williams has emerged as a key witness
The two Canadian energy said. He added that Canadian in a criminal investigation of
companies had been working Oil Sands shareholders, includ- Samarco and several of its of-
on a revised bid since last ing Canadian billionaire Sey- ficials by Brazil’s Federal Po-
week, said a person familiar mour Schulich, who previously lice. He spoke to The Wall
with the matter. opposed the deal, support the Street Journal on Saturday af-
The new all-stock offer, revised offer. ter a statement he gave to the
which boosts the overall bid “I will be tendering my police in December was pub-
value from about C$3.78 bil- shares,” Mr. Schulich said in lished by local newspaper
lion, consists of 0.28 of a Sun- the written statement. Folha de S. Paulo.
cor share for each Canadian Mr. Schulich owns a The cause of Samarco’s ac-
Oil Sands share, up from 0.25 roughly 5.2% stake in Cana- cident remains unknown. But a
of a share previously. The dian Oil Sands. series of minor tremors—with
companies valued the new bid, Canadian Oil Sands had a magnitude between 2.0 and
based on closing prices on Fri- called the former offer inade- 2.6—were registered in the
day, at roughly C$6.6 billion, quate and had been asking its hours leading up to it. Though
including debt of roughly shareholders to allow it to re- they weren’t strong enough to
C$2.4 billion. main independent. Since Sun- have affected a sturdy tailings
RICARDO MORAES/REUTERS
cor’s original bid in October, dam, some engineers have said

slumping oil prices amid a the tremors could have trig-
A new, all-stock supply glut have continued to gered the Fundão dam’s lique-
offer boosts the pressure producers. Brent faction if it was saturated with
crude, the global oil bench- water or in a precarious state.
overall bid value to mark, is now below $30 a bar- Samarco also referred to
$2.92 billion. rel, its lowest level in 13 years. the tremors in Saturday’s
“Our shareholders clearly statement as it reiterated that The banks of Brazil’s Rio Doce were flooded with mud last year after Samarco’s Fundão dam burst.
signaled they expected more the dam’s collapse was com-
Shares of Canadian Oil for their COS shares, and the pletely unforeseen. substantially after 2012, Sa- said he wasn’t responsible for pany doesn’t dispute this.
Sands jumped Monday on board has worked to secure Mr. Campos said monitoring marco said it followed his gen- the dam after 2012 because Sa- “We never heard that any-
news of the new deal and that under very challenging instruments on Nov. 5 indi- eral guidelines and that all the marco departed from his design. one thought it could break,”
closed up 11% at C$8.27 on circumstances,” said Don cated that the dam’s stability recommendations he made as a Lindsay Newland Bowker, a said José do Nascimento Je-
Monday. Lowry, chairman of Canadian exceeded minimum require- consultant were followed. Maine-based environmental sus, a displaced town elder
Suncor shares declined Oil Sands. ments. The tremors, he said, “What I think was lacking risk manager who has been from Bento Rodrigues.
4.6% to C$29.77. This month, Suncor’s Mr. were strong enough to break was a belief in the worst-case closely following the Samarco He said the last time Sa-
Based on current prices, Williams said in an interview windows in Samarco’s adminis- scenario, that the worst-case case, described Mr. Pimenta de marco officials mingled with
Suncor’s revised bid values that his company hadn’t ruled tration building near the dams. scenario was viable,” Mr. Pi- Ávila’s allegations as “major.” townspeople before the acci-
Canadian Oil Sands shares at out an increased bid for Cana- Samarco contracted Mr. Pi- menta de Ávila said. “He certainly would be more dent was in September.
C$8.34 a share, or around dian Oil Sands to win over menta de Ávila to design and Mr. Pimenta de Ávila said than qualified to make that judg- “The duty to warn was when
C$4.04 billion. shareholders. Just over a week oversee the construction of the he subsequently sought clarifi- ment and his opinion would they had the crack,” said Ms.
Canadian Oil Sands, the ago, Suncor extended its pre- Fundão tailings dam between cations on the buttress design more than hold water, so to ig- Bowker, who said cracks and
largest owner of the giant vious offer by nearly three 2008 and 2012. When his con- in 2014 but never heard back. nore that would be very seri- bulges are “universally ac-
Syncrude Canada oil-sands weeks, a move that indicated tract expired that year, Sa- Samarco said Mr. Pimenta de ous,” she said. cepted” as warning signs. “There
mining consortium in Alberta, it hadn’t received enough sup- marco turned down his bid to Ávila was aware of what was be- Residents of the village of was time then. There was a
had called Suncor’s previous port ahead of its original renew it, he said. Mr. Pimenta ing done in regard to his recom- Bento Rodrigues, a few miles whole year to prepare the town,
all-stock offer too low. deadline. de Ávila said that decision mendations and never pro- down the valley from the dam, assess the [potential] damage,
Suncor, which also owns a The revised offer, which likely was made because of tested. said they were alerted to the and they didn’t do that.”
stake in Syncrude, had said its will remain open until Feb. 5, cost. Samarco declined to say The company said dam-break oncoming sludge by word-of- Samarco declined to directly
offer was fair, particularly as is subject to at least 51% of why it didn’t renew his con- analyses by Mr. Pimenta de mouth rather than by Sa- answer a question about why it
crude-oil prices have been Canadian Oil Sands’ shares be- tract or who succeeded Mr. Pi- Ávila’s own firm didn’t project marco, and local authorities didn’t alert Bento Rodrigues
tumbling amid concerns about ing tendered and includes a menta de Ávila after 2012. the scenario of a complete and said the company had no when Mr. Pimenta de Ávila
excess supply and slowing breakup fee payable by Cana- The company hired Mr. Pi- sudden collapse. warning system in place for a raised concerns about the dam.
global demand. Nonetheless, dian Oil Sands, if the deal isn’t menta de Ávila back for part- “I think this is the conduct dam break. “The dam was stable…until
Suncor had been under pres- completed. The previous offer time consulting work from Oc- of someone who wants to Residents also said com- the date of the seismic occur-
sure to sweeten its bid after it required support from at least tober 2013 to 2015. avoid blame,” Mr. Campos said pany officials repeatedly as- rences, whose contribution to
this month extended the dead- two-thirds of the target’s Though Mr. Pimenta de Ávila of Mr. Pimenta de Ávila. sured them of the dam’s safety the event should be duly con-
line for acceptance. shareholders. said the dam’s design changed The engineer, for his part, in town meetings. The com- sidered,” the company said.
THE WALL STREET JOURNAL. * * * * Tuesday, January 19, 2016 | B3
BUSINESS NEWS
SpaceX Stumbles in Ocean Landing Renault

Readies
Mishap at the final
stage mars return
of the main part
Plan to Cut
of the spent rocket Emissions
BY ANDY PASZTOR BY JASON CHOW
For the third time in PARIS—Renault SA will an-

roughly a year, billionaire en- nounce a technical plan to re-
trepreneur Elon Musk’s space- duce diesel emissions of its ve-
transportation company hicles in the coming weeks after
SpaceX failed to land the main a special environmental com-
part of a spent rocket on a mission found that some of the
floating ocean platform. French auto maker’s cars ex-
The Space Exploration ceeded emissions limits.
Technologies Corp. booster Thierry Koskas, the com-
maneuvered back to its desti- pany’s sales chief, said Monday
nation as intended on Sunday, that Renault will unveil a plan
but broke one of its standing that will explain how the auto
legs as it landed. maker intends to lower the
The company initially said it emissions of carbon dioxide and
touched down harder than nitrous oxide from its diesel
planned amid 10- to 15-foot cars that are currently under
swells. Later, in what eventually production and on the road.
could turn out to be a boost for Renault is seeking to win
the company’s critical guidance back consumer and investor
and flight-control systems, Mr. trust after the government
Musk suggested the mishap ap- named the company among
peared to be the result of a rela- auto makers that sold cars in
tively simple mechanical failure. France in violation of pollution
He sent out a personal standards.
tweet indicating “touchdown News of the emissions
speed was OK,” but the lock- breach, as well as revelations
ing mechanism on one leg that the French government
didn’t latch “so it tipped over launched an antifraud investi-
after landing.” gation into the company’s emis-
The company didn’t imme- sions claims, sent the stock
diately indicate the extent of tumbling last week. The stock
the damage to the Falcon 9 fell 1.3% to €74.17 ($80.97) in
rocket’s returning first stage. Paris on Monday .
Last month, SpaceX made a On Monday afternoon, Re-
successful first-of-its-kind renault executives appeared be-
BILL INGALLS/NASA/ASSOCIATED PRESS
turn of a used booster that fore a closed-door French gov-

hurtled back from space and ernment commission to explain
made a pinpoint touchdown on why some of the company’s
land seemingly without incur- cars have exceeded emissions
ring any significant damage. limits, according to a Renault
SpaceX fell short of notch- representative and a commis-
ing that same feat on water sion member.
Sunday, but carried out the France’s environment and
primary aim of the latest mis- transport minister, Ségolène
sion: blasting a scientific satel- Royal, set up the emissions
lite into orbit from SpaceX The SpaceX Falcon 9 rocket on Saturday evening in California. A landing mishap occurred on Sunday, the company said. panel last October, in the wake
Falcon 9 rocket. of the Volkswagen AG emis-
SpaceX was hoping to dem- free launch from a pad the rocket for another flight to be a flawless countdown that trig- to future space endeavors, ac- sions scandal, to test 100 cars
onstrate its rocket-reusability company hadn’t used before for one in five. gered all nine engines of the cording to Mark Albrecht, a under real driving conditions.
prowess by returning it to a an operational mission—com- In typical launches, parts of rocket to fire simultaneously former senior White House The tests are still under way,
specially outfitted platform bined with the pinpoint naviga- the booster either burn up dur- at 10:42 Pacific time, hopes space official and ex-Lockheed but Ms. Royal said last week
floating in the Pacific Ocean off tion of the rocket’s first stage ing re-entry or come back too were high among company en- Martin Corp. executive. that Renault and several foreign
the Southern California coast. to its intended landing spot— damaged to be reused. Devel- gineers. They cheered when Referring to previous suc- car brands were among those
About 2½ minutes after underscored SpaceX’s flexibil- oping a truly reliable and reus- the Falcon 9 propelled the Ja- cessful rocket landings by that had been found with exces-
blast off, the Falcon 9’s lower ity and technical prowess. able rocket could be a financial son-3 satellite skyward, and SpaceX and Blue Origin LLC, a sively high exhaust emissions.
portion separated from the Guiding the rocket back in game-changer for satellite op- the second stage engine suc- rival commercial-space venture The commission isn’t expected
rest of the rocket and started the correct trajectory and re- erators and launch providers. cessfully reignited to insert the backed by Amazon.com Inc. to comment on the hearings un-
an intricate series of engine ducing its speed from about satellite into its proper orbit. chairman Jeff Bezos, Mr. Al- til all of the auto makers have
burns to maneuver for the six times the speed of sound A collaborative venture be- brecht told a space conference met with the panel.
landing. About six minutes are the most complex factors
Mr. Musk sent a tween NASA and European earlier this month, “they’re not Mr. Koskas said Monday that
later, the returning first stage in a successful return. tweet stressing it is space authorities, the satellite there yet” in terms of having a Renault hasn’t been found to
executed its final engine burn After the botched landing, is designed to measure sea clear plan for refurbishing and have cheated on emissions
to reduce speed to try to touch Mr. Musk, SpaceX’s founder,
‘definitely harder to levels, plot currents and help reusing parts of boosters. tests. All of its models have
down gently on the platform, chief executive and top de- land on a ship.’ improve weather forecasts and Also, the company will have been approved by the appropri-
measuring about 300 feet by signer, sent a tweet stressing climate-change models. It was to rely on the Vandenberg site ate regulators to be produced in
170 feet, off San Diego. that it is “definitely harder to originally supposed to launch in coming years to use a vari- Europe, he said. About 63% of
Weather and communica- land on a ship,” which he com- SpaceX tried but failed on a Falcon 9 last summer. ant of the Falcon 9 capable of Renault cars sold in Europe use
tion difficulties delayed offi- pared with the difference be- twice to land on a floating Industry and government lifting heavier cargo, such as diesel for fuel, he said.
cial word of the booster’s fate tween aiming for “an aircraft platform last year, foiled by space officials, however, gen- military satellites and other Mr. Koskas acknowledged
for about 20 minutes. Finally, carrier vs. land.” mechanical or fuel issues. A erally have seemed more fo- payloads, into desired orbits. that Renault cars emit more ni-
the company broke the news. The company has notched third scheduled attempt was cused on the fate of the In addition, SpaceX’s con- trous oxide and carbon dioxide
“First stage on target at considerable progress in de- scrubbed due to bad weather. booster’s return trip, and what tracts to deliver cargo and as- under real-world driving condi-
droneship,” it tweeted, “but veloping what ultimately are Subsequently, plans for an- that may portend broadly for tronauts to the international tions than under laboratory
looks like hard landing.” It expected to be reusable rock- other try at a water landing space transportation. space station through 2024— conditions. He said Renault still
later released video showing ets. Barely three years ago, Mr. were aborted by a catastrophic “We’re right on the cusp of as well as its longer-term busi- “respects all the rules” of lab
the rocket section tipping over Musk and his team estimated launch failure last June. trying to figure out how much ness plans—anticipate signifi- emissions tests that are re-
and bursting into flames. the chances of pulling off the But on Sunday, amid good we can turn over to commer- cant cost savings stemming quired for prototypes waiting to
Nonetheless, the trouble- technical coup of retrieving a weather at the launch site and cial industry” when it comes from reusable boosters. be approved for production.
years old, as group president of

WhatsApp Will Stop Charging Subscribers a Fee
Business resource industries, the division
that makes mining equipment,
Watch effective April 1. Ms. Johnson,
previously vice president respon-
sible for the material-handling
division, is the first woman to
reach the group-president level
at Caterpillar.
REVLON Ms. Johnson succeeds
Ed Rapp as head of the mining
Perelman Explores business. Mr. Rapp, 58, an-
His Alternatives nounced last month that he
Financier Ronald O. Perelman, would retire early because he
chairman and controlling share- had been diagnosed with amy-
holder of Revlon Inc., wants otrophic lateral sclerosis, known
changes at the cosmetics giant. as Lou Gehrig’s disease.
Mr. Perelman, who holds a —James R. Hagerty
77.6% stake in Revlon through
his investment firm MacAn- ROYAL DUTCH SHELL
drews & Forbes Inc., on Friday
disclosed in a regulatory filing
Oil Giant Quits Plans
that he was exploring strategic For Emirates Project
alternatives, without providing Royal Dutch Shell PLC said
specifics beyond saying that Monday it will quit plans for a
third parties would be involved. major gas development in the
The price of Revlon shares, United Arab Emirates amid a
which had set a near two-year- broad shake-up of the company’s
low on Thursday, surged 10% strategy and one of the most
Friday to $27.79. severe routs in oil markets.
The New York City-based The project is the latest casu-
TOBIAS HASE/ZUMA PRESS
company reported an 18% drop alty of Shell’s push to streamline

in profit for the first nine its portfolio and cut costs as it
months of the year, the most re- prepares to close its blockbuster
cent results available. acquisition of BG Group PLC.
—Maria Armental According to Shell, the joint
venture it entered into with the
CATERPILLAR Abu Dhabi National Oil Co., or
Adnoc, in 2013 to develop Abu
Denise Johnson Dhabi’s Bab sour gas reservoirs WhatsApp will scrap its However the service’s co- book Inc. and WhatsApp—whose line, but not until it reaches
Named to Run Unit no longer fits the company’s subscription fee and explore founder, Jan Koum, pictured booming subscriber growth, in about a billion users. Mr. Koum
Caterpillar Inc., long run by strategy, “particularly in the eco- ways that businesses can in- above, told an audience at the part based on its ad-free model, said Monday that WhatsApp
male lifers, named a woman nomic climate prevailing in the teract with the mobile messag- Digital Life Design conference went some way to justifying the has nearly reached that mark,
whose experience is mostly out- energy industry.” ing service’s users to make up in Munich that his company $22 billion Facebook paid for it but there is no deadline to start
side the equipment maker to A spokesman for Shell said for the lost revenue, its co- will start removing the fees in 2014. generating revenue.
head its weakest business, min- there would be no write-downs founder said Monday. from different versions of the Facebook Chief Executive A Facebook representative
ing machinery. associated with the decision. The app had charged an an- app in coming weeks because Mark Zuckerberg previously said wasn’t immediately available to
The Peoria, Ill.-based company —Sarah Kent nual renewal fee of $1 for all they aren’t practical. he expected WhatsApp to con- comment.
appointed Denise Johnson, 49 and Summer Said users after their first year. The move is a shift for Face- tribute to the company’s bottom —Natalia Drozdiak
B4 | Tuesday, January 19, 2016 THE WALL STREET JOURNAL.
BUSINESS NEWS
ADIDAS Mr. Rorsted’s selection ends

a monthslong search at Adidas
that also considered two inter-
nal candidates.
Continued from page B1 Henkel early Monday said
global design director from its supervisory board and
Germany to its U.S. headquar- shareholder committee had
ters in Portland, Ore., restruc- unanimously agreed to Mr.
turing its marketing and de- Rorsted’s request to prema-
sign departments, and placing turely terminate his contract
more emphasis on U.S. sports as CEO. The company said
marketing. Hans Van Bylen, a board mem-
Adidas in recent years has ber overseeing the company’s
hired designers from Nike and beauty-care business, would
it’s team-sports chief from Un- replace him as Henkel CEO
der Armour. on May 1.
Investors and analysts have “We welcome the appoint-
praised Mr. Rorsted, a 53-year- ment of Mr. Rorsted as succes-
old Dane, who is an avid run- sor to Mr. Hainer and hope
ner. But his career wasn’t al- that the long dry spell for Adi-
ways so promising. In 2004, das’s profitability will come to
BALINT PORNECZI/BLOOMBERG NEWS

Hewlett-Packard CEO Carly an end,” said Union Invest-
Fiorina fired him as head of ment fund manager Ingo Spe-
Europe, Middle East and Af- ich. Union Investment has a
rica for failing to meet his tar- stake of roughly 1.2% in Adi-
gets. das, making it one of the com-
At Henkel, Mr. Rorsted says pany’s top 20 shareholders.
he has applied lessons from Mr. Hainer, 61 years old, is
his time at H-P. He has shaken the longest-serving CEO of a
up the once stodgy company German blue-chip company. In
by cutting bureaucracy, shed- the course of his 14-year ten- Iran’s transport minister told state media Saturday that the country would buy 114 airplanes from Airbus to help renovate Iran Air.
Firms Aren’t Racing to Iran

ding 800 noncore brands, ure, he went from being a
overhauling its product assort- lauded executive, posting new
ment and replacing German profit records annually until
managers in the U.S. with 2012, to being pilloried by in-
Americans. vestors. In 2014 he scrapped
Henkel is now more tightly Adidas’s financial targets,
controlled and compact, said prompting a fall in its share Western companies embargo and a ban on most nian oil and stop the clearing tions noose tightened in 2012.
Oru Mohiuddin, senior analyst price of roughly 40%. energy-sector investments. of U.S.-dollar transactions European Union-goods trade
for beauty care at Euromoni- Adidas’s share price has still face barriers, even The isolation of Iran’s banking through the financial system. with Iran fell to €11.7 billion
tor. Its reaction time to mar- since largely recovered. after implementation sector and restrictions on its Those constraints will slow ($12.8 billion) in 2014 from
ket changes, such as a shift to The weak financial perfor- shipping and transport compa- U.S. and European investment close to €28 billion in 2011, ac-
buying laundry detergents on- mance was caused by sliding of nuclear agreement nies also are over. in Iran and force companies to cording to EU data.
line instead of at stores—has sales at Adidas’s golf business, Indeed, Iranian Transport find creative ways to operate Underscoring their appetite
gotten much shorter, she said. dwindling market share in Western companies will Minister Abbas Akhoundi told there, said business executives for Iranian business, European
“You can see that their po- North America and currency face formidable barriers to do- state media Saturday that the and current and former U.S. countries including Germany,
sition has become much stron- losses in Russia, one of its ing business in Iran, even after country would buy 114 civilian and European government of- France and Britain started
ger,” she added. Henkel has most important markets. In Saturday’s implementation of aircraft from Airbus Group ficials. U.S. companies are con- sending large business delega-
been able to outpace competi- late 2014 several investors SE, as a first step in the reno- sidering setting up investment tions to Iran last year, in some
tors including Procter & Gam- voiced discontent with the By Laurence Norman, vation of national carrier Iran vehicles abroad to work in cases within days of last July’s
ble Co. in many markets, Ms. company’s performance. Some Benoît Faucon Air. Iran’s airlines have been Tehran, though talks with the signing of the nuclear deal.
Mohiuddin said. pushed for Mr. Hainer’s early and Alison Sider targeted by sanctions for de- U.S. government and lawyers But business officials and
departure. cades, contributing to poor are continuing. European com- people familiar with the talks
Mr. Hainer held on, insist- a nuclear agreement between maintenance of the country’s panies, eager to return to a fa- said big long-term investments
Mr. Hainer, 61, is ing he would stay until his Iran and six world powers. aging 140-plane fleet. In re- miliar market, are confronting and contracts may take some
the longest-serving contract ran out and that he Banks, in particular, are wor- cent months, the U.S. had per- jittery banks that have faced time.
would turn the company ried about running afoul of mitted the sale of some air- huge U.S. fines for violating They pointed to a range of
CEO of a German around. some U.S. sanctions that will craft parts and training sanctions. factors, including concerns
blue-chip company. Last March he presented a remain in force. documents. Carlos Ghosn, chief execu- that a new U.S. president in
new five-year strategy that in- Iran represents an appeal- Even with the lifting of tive of French car maker Re- 2017 could seek to undercut
cluded management changes ing market, with 80 million sanctions related to Iran’s nu- nault SA, said at a news con- the nuclear deal. There also
At Henkel, Mr. Rorsted has and more focus on the U.S., people who enjoy Western clear program, a ban on arms ference last week that Iran is a are worries about a recent
become known for his con- where Adidas had been strug- brands such as Coca-Cola, and ballistic-missile technol- place where he wants to do spate of arrests by Iranian se-
stant travels, including gling for decades. drive European cars and stood ogy will stay in place, and the business, with a car market curity forces of Iranian busi-
monthly trips to the U.S., a Last month, Mr. Hainer said in line to buy Apple iPhones U.S. will keep trade curbs re- that could increase to 1.5 mil- nessmen with ties to foreign
market he deemed the most the turnaround was on course. when they were available lated to human rights and ter- lion vehicles a year from one companies. Iran over the week-
important region for Henkel’s Adidas investors were all sat- through third parties. The rorism on broad sectors of the million. But he said his com- end released several Iranian-
growth. isfied, he said, adding that he country also represents a po- country’s economy. These in- pany wouldn’t dive in until the Americans as part of a pris-
In early 2015, he started a expected 2016 to be a record tential bonanza for energy clude companies linked to timing was “politically coroner swap with the U.S.
major push into the U.S. mar- year for the company. companies, with the world’s Iran’s powerful Revolutionary rect,” and legally safe. The biggest concern is the
ket, introducing one of Hen- Bernstein analyst Andrew largest natural-gas reserves Guard Corps, a hard-line para- “We want to go [to Iran], impact of continued U.S. sanc-
kel’s most famous products, Wood called Mr. Rorsted’s and fourth-largest oil reserves. military force with members but we don’t want to go too tions. Banks, including BNP
the premium-priced Persil switch to Adidas a surprise. Most nuclear-related eco- who have wide and often precipitously and create prob- Paribas SA of France, have re-
laundry detergent, to Wal- “Given Rorsted’s success at nomic and financial sanctions opaque economic interests. lems,” Mr. Ghosn said. ceived multibillion-dollar U.S.
Mart Stores Inc. This year, Henkel, we are sure there on Iran have been lifted, in- U.S. sanctions also will con- Europe was Iran’s biggest fines in recent years for vio-
Henkel plans to expand its dis- was—or would have been—no cluding a European oil and gas tinue to ban purchases of Ira- trade partner before the sanc- lating the sanctions.
tribution of Persil to several shortage of offers open to him,
other major chains, including so the news that he is to be-
Kroger and Rite Aid.
In recent years, Henkel ac-
quired numerous U.S. compa-
nies, including thermal man-
come Adidas CEO is somewhat
of a surprise, given Adidas is
half the size of Henkel,” Mr.
Wood said. He noted that Hen-
MIMS
agement firm Bergquist Co. kel’s share price had risen to Continued from page B1
and several professional hair- €93 ($101) from €22 in 2008, houses. Of course, there was
care brands. Henkel currently when Mr. Rorsted presented no disgruntled operator—just
holds the No. 8 spot in the U.S. his first four-year plan. the Gondorfs, who made off
home-care market and the No. Neither Kasper Rorsted nor with whatever wager the
15 spot in beauty care, accord- Herbert Hainer was available mark had put down.
ing to data provided by Eu- to comment. “To this day, the weak link
romonitor. Henkel shares fell 4.1% in all of the interactions be-
Mr. Rorsted said in a recent on Monday. tween [humans and IT] sys-
interview that the U.S. was Adidas declined to com- tems is the human who is
SEONGJOON CHO/BLOOMBERG NEWS
“extremely attractive comment on Mr. Rorsted’s com- making a mistake,” says Mo-
pared to most other markets pensation. Henkel said Mr. ran Cerf, a former hacker
in the world,” and that he Rorsted would receive his turned neuroscientist. Mr.
hoped Henkel would increase fixed salary and “variable re- Cerf’s twin passions give him
the U.S. share of its global rev- muneration proportionately a unique insight into the
enue to 25% from 20% today. calculated for his services in problem, which he says has
Ms. Mohiuddin, the analyst, the current fiscal year” from only grown worse as technol-
said she believed Henkel was the company, but no special ogy has progressed.
headed in the right direction compensation. That is why those who fall
in the U.S., despite still being —Sara Germano for email or phishing scams,
a small player. contributed to this article. which can unleash wide-
spread cyberattacks, continue
When someone has information about us, we are more likely to
to do so despite massive pub- trust them. That’s helped hackers sharpen phishing attacks.
MINIVAN continued appeal of the mini-

van more than any other car
maker.
For Toyota and Honda, mini-
licity and corporate training.
The information hackers
and con artists need to per-
suade someone to trust them Whenever someone has in- 2015 data breach report so Henry, is to assume that hu-
Continued from page B1 van sales accounted for about is more readily available than formation about us, we are colorfully put it, “a campaign mans will fail, and automate
abroad. Several of the top-sell- 6% and 9% of total U.S. vol- ever. If you have ever ac- more likely to trust them. of just 10 emails yields a around them. Better email fil-
ing vehicles in China are lo- umes, respectively, last year. At cepted a friend request on That insight has helped hack- greater than 90% chance that tering can make a huge differ-
cally built minivans, including Chrysler, the minivan accounted Facebook from someone you ers sharpen phishing attacks, at least one person will be- ence, as well as systems
the Buick GL8 and Baojun 730 for 13% of its sales in 2014. Last don’t know, even someone in which they spam corporate come the criminal’s prey, and within a company’s IT infra-
that GM produces with Chi- year, that fell to 8.5%, due to 14 with whom Facebook says inboxes with emails that can it’s bag it, tag it, sell it to the structure that work almost
nese joint-venture partners. weeks of lost production during you have mutual friends, you be targeted to individuals in butcher.” like an immune system, moni-
Though Fiat Chrysler the Windsor plant upgrade. are part of the problem. ways that make these emails The obvious solution to toring internal traffic to catch
doesn’t disclose profitability What keeps its appeal Facebook is a huge trove of look more credible. this problem is to teach peo- malware after it is already in-
by individual brands or mod- alive? everything from our contacts These more-personalized ple to be more wary of every- fected the system.
els, analysts say the company’s The minivan is still a to our whereabouts, and tons “spear phishing” attacks are thing in their inbox. But his- Despite more than a de-
heavy investment in the seg- launchpad for family-car inno- of information about us that more likely to succeed be- tory has shown that doesn’t cade of attempting to educate
ment has paid off: Its minivans vations, including a built-in we don’t even know we are cause they come from some- work. Banks, in particular, are people about phishing at-
deliver profit margins that ex- hand-held vacuum and multi- revealing can be gleaned from one we know—or think we spending huge sums trying to tacks, Verizon’s report says,
ceed those its small cars bring, ple entertainment systems. it by clever algorithms, from know. The moment someone teach their employees not to they remain the second-most-
though they don’t reach the The Honda Odyssey recently our tastes to our politics, says downloads an attachment to open suspicious emails. common point of entry into
profitability of its SUVs. offered a second-row sliding Mr. Cerf. Friending strang- an email or clicks on a link, But how can you do that an IT system, and have been
“The minivan is not the middle seat that provides easy ers on Facebook through fake their system is infected, and effectively when, for example, on the rise since 2011.
cash cow it used to be, but Fiat front-seat access to a baby accounts—and then leverag- attackers can move laterally you are J.P. Morgan Chase & They are also the most
Chrysler makes reasonable re- carrier. ing mutual connections to through a network, quickly Co.—which recently suffered popular way for governments
turns on it, though nothing With the new Pacifica, gain access to the network of progressing from a lowly a breach of data about 76 mil- to conduct cyber-espionage,
like on a Jeep or a full-size Chrysler is attempting to a mark—is a common tactic press officer’s computer into lion households—and you which means they are the
Ram truck,” said Stephen Reit- shake the reputation for of “social engineering” hack- an IT system’s most sensitive have more than 250,000 em- leading edge of what are po-
man, an equity analyst with stodginess that has long ing. Of course, social media is innards. In one study of ployees? tentially the most dangerous
Société Générale in London. dogged the boxy minivan. just the beginning. 150,000 test emails sent to “Securing the computers of intrusions. History has shown
Minivan margins are solid “This may be the first mini- “Amazon wish lists are a two of its security partners, 250,000 people, or getting us we aren’t going to win this
enough that Japanese car mak- van you buy where your chil- treasure trove, so is your researchers at Verizon Enter- 250,000 people to comply, is war by changing human be-
ers continue to invest in the dren let you pick them up in eBay bidding history,” says prise Solutions found that a virtual impossibility,” says havior. But maybe we can
business and are building mar- front of the movie theater,” Ms. Konnikova. “All this stuff 23% of recipients opened the Shawn Henry, president of build systems that are so
ket share. said Tim Kuniskis, Fiat Chrys- is there for the taking, and email, and 11% clicked on the cybersecurity firm Crowd- locked down that humans
Last year, Toyota’s Sienna ler’s head of passenger car you do not have to be a so- attachment, which under nor- Strike and a former executive lose the ability to make dumb
was the top seller, followed by brands in North America. phisticated hacker to compile mal circumstances would assistant director at the Fed- mistakes. Until we gain the
the Honda Odyssey. —Yoko Kubota pretty intricate profiles of a have carried a payload of eral Bureau of Investigation. ability to upgrade the human
Chrysler depends on the contributed to this article. person.” malware. Or, as Verizon’s The solution, says Mr. brain, it is the only way.
THE WALL STREET JOURNAL. * * Tuesday, January 19, 2016 | B5
MEDIA & MARKETING

‘Star Wars’ Slips Back
Over holiday weekend,
‘Ride Along 2’ opens
at No. 1; second place
BENOIT TESSIER/REUTERS
goes to ‘The Revenant’

BY ERICH SCHWARTZEL
The Kevin Hart comedy

“Ride Along 2” knocked “Star
Glenn Frey helped define the California sound of the 1970s. Wars: The Force Awakens” off
QUANTRELL D. COLBERT/UNIVERSAL PICTURES/EVERETT COLLECTION

its monthlong position atop the
Eagles Co-Founder box office, debuting in first

place with a strong $41.5 mil-
lion in collections over the long
Topped 1970s Charts holiday weekend.

Oscar buzz helped keep “The
Revenant” in second place. The
BY JOHN JURGENSEN and Linda Rondstadt, not to Leonardo DiCaprio frontier
mention young music execu- drama, which picked up 12
Glenn Frey, a founder of the tives including David Geffen. He Academy Award nominations,
Eagles who met Mr. Henley and formed the collected an estimated $39 mil-
OBITUARY helped create Eagles (with Bernie Leadon and lion in the U.S. and Canada. Its
GLENN some of rock’s Randy Meisner) in 1971, kicking total revenue now stands at
FREY biggest hits with off one of rock’s most success- $97.2 million.
fellow song- ful—and fractious—songwrit- “The Force Awakens” fol-
writer Don Hen- ing partnerships. lowed in third place, with $32.6
ley, including “Hotel California” In a statement released Mon- million for the week, bringing
and “Lyin’ Eyes,” died Monday day, Mr. Henley said, “He was its domestic gross to $858.5 ‘Ride Along 2,’ with Ice Cube, left, and Kevin Hart, attracted a more diverse audience than the original.
in New York at age 67. like a brother to me; we were million.
Though the singer and gui- family, and like most families, The weekend’s other high- movie at a theater in Iowa, ac-
tarist’s band last summer com- there was some dysfunction. profile release, “13 Hours: The cording to local reports.
pleted a final leg of its History But, the bond we forged 45 Secret Soldiers of Benghazi,” The movie’s studio, Viacom
Estimated Box-Office Figures, Through Monday
SALES, IN MILLIONS
of the Eagles tour, the group re- years ago was never broken, collected $19.7 million—lagging Inc.’s Paramount Pictures,
cently canceled an appearance even during the 14 years that behind debuts of other recent didn’t reach out to the candi- FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE
at the Kennedy Center Honors the Eagles were dissolved.” military dramas like “Lone Sur- dates, said Rob Moore, the stu-
1. Ride Along 2 Universal $41.5 $34.04
because of Mr. Frey’s health The band released six albums vivor” and “American Sniper”. dio’s vice chairman. “We hoped
problems. In recent weeks, he before breaking up in 1980. Mr. “13 Hours,” about soldiers we would get past the politics 2. The Revenant 20th Century Fox $39 $97.2 -31%
battled rheumatoid arthritis, Frey launched a successful solo caught in the 2012 attack on and really have people focus on 3. Star Wars: The Disney $32.6 $858.5 -41%
acute intestinal disease and career that fed off a slick rock the U.S. diplomatic compound what happened, and these he- Force Awakens
pneumonia, according to a sound and Hollywood tie-ins. in Libya, has become politi- roes and telling their stories,”
4. 13 Hours: The Paramount $19.65 $19.65
statement by the band. The Eagles got back together cized, and scored endorse- he said.
Secret Soldiers
Mr. Frey, who would help de- in 1994—an unlikely reunion ments from Republican presi- “13 Hours” outperformed in
Of Benghazi
fine the California sound of the dubbed the Hell Freezes Over dential candidates ahead of its the southern states. About 41%
1970s with the Eagles’ tight vo- Tour. Though the Rock & Roll opening. of its weekend business came 5. Daddy’s Home Paramount $12 $132 -36%
cal harmonies and country-in- Hall of Fame inductees released Last week, Texas Sen. Ted from those states, while other *Friday, Saturday, Sunday and Monday Source: Rentrak
flected rock, had his roots in the new material on the 2008 al- Cruz began his closing re- films generated roughly 33% of
Midwest. Born in Detroit, he bum “Long Road Out of Eden,” marks at the GOP debate by business.
played with a slew of Beatles-in- the group’s final outing was a touting the movie. “Tomorrow “Ride Along 2,” released by opened with audiences that The animated family film
spired local bands before sing- retrospective. A two-part docu- morning, a new movie will de- Comcast Corp.’s Universal Pic- were 50% African-American, “Norm of the North,” released
ing backup and playing guitar mentary film, “History of the but about the incredible brav- tures with a budget of about 30% Hispanic and 12% Cauca- by Lions Gate Entertainment
on his friend Bob Seger’s first Eagles,” supplemented a ery of the men fighting for $40 million, attracted a more sian. The sequel’s breakdown Corp., grossed $9.3 million over
hit, “Ramblin’ Gamblin’ Man.” roughly two-year concert tour their lives in Benghazi and the diverse audience than the origi- was 34% African-American, 34% the four-day weekend.
After relocating to Los Ange- by the same name, which found politicians that abandoned nal movie, which opened in Hispanic and 22% Caucasian—a Of all the new releases, audi-
les, he immersed himself in the Mr. Frey and his bandmates them,” he said. January 2014 to $41.5 million result of viewers finding the ences liked “13 Hours” the best.
singer-songwriter scene of the performing in an intimate stage Republican front-runner and went on to gross $134.9 franchise since its release, said It received an “A” grade from
late 1960s, collaborating with setup and telling stories about Donald Trump gave out free million. Nick Carpou, Universal’s presi- audiences, according to the Cin-
rising stars Jackson Browne their musical past. tickets to screenings of the The original “Ride Along” dent of domestic distribution. emaScore market research firm.
Global March
Netflix’s content costs are rising as it spreads its service overseas.
Netflix streaming subscribers at home and abroad Costs for streaming content
Coke Seeks to Get Pop From Ads
80 million Rest of Western Latin America $10 billion BY MIKE ESTERL sumers world-wide cut back life—a bottle of Coke at the
Europe and Caribbean AND SUZANNE VRANICA on sugary drinks due to health center of it all, bringing people
U.S. 6.8m 8.3m concerns. The company’s soda together. That represents a
International 8 Coca-Cola Co. is hoping to volume rose 1% in the first shift from “Open Happiness,”
60
get a badly needed pop from a nine months of 2015, and soda which played up the 130-year-
6 new global advertising cam- consumption in the U.S. has old brand’s role in having fun
International paign for its flagship cola. been declining for more than a and as a force for good, but
40 subscribers The soda giant known for decade. spent less time showing people
26m 4 iconic ads featuring Santa Claus A lot is at stake for Marcos drinking the beverage.
and polar bears is expected to de Quinto, the company veteran Coke’s biggest challenge is
20
2 unveil the campaign this week who took over as chief market- reversing the rising tide of crit-
Asia with the tag line: “Taste the ing officer a year ago, part of a ics who blame sugary sodas for
U.K. and Pacific Feeling,” according to people broader company shake-up that helping to fuel obesity, diabetes
0 Ireland 5m Canada 4.6m 1.3m 0
familiar with the matter. It will included a $3 billion cost-cut- and tooth decay.
2013 ’14 ’15 2011 ’12 ’13 ’14 ’15* replace “Open Happiness,” ting plan and the departure of Coke says soda makes up a
*As of the third quarter Sources: the company; Futuresource (international subscribers by region) THE WALL STREET JOURNAL. which was launched in 2009. A several senior executives. small part of most people’s di-
Coke spokesman declined to The new campaign will focus ets and that it is unfairly be-
NETFLIX familiar with the talks say.

Hulu is newly studying inter-
national expansion—whether
to go it alone or partner.
lion to $6 million an episode.
For original series, Netflix
offers to pay premiums equiv-
alent to 120% to 150% of a
comment on the new campaign.
Atlanta-based Coke is try-
ing to jump-start sales, as con-
on the refreshing taste of the
famous cola, while telling sto-
ries about special moments in
ing singled out for contribut-
ing to obesity and other health
problems.
Continued from page B1 Investors, who have sent Net- show’s cost for global rights.
providers, including Southeast flix shares up 121% during the Studios typically recoup about
Asian streaming services iflix past 12 months despite slowing 70% of their production costs ADVERTISEMENT
and HOOQ, as well as Canada’s U.S. subscriber growth, will get by selling first-airing rights to
Shomi, also are in the mix.
Executives say discussions
an update when the company
reports earnings today.
a TV network and rely on un-
certain revenue from reruns to
The Mart
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are nascent and acknowledge Netflix benefits from simul- generate a profit. Today, seri-
hurdles toward getting multi- taneously buying rights in many alized dramas can cost about
ple companies in different territories—traditionally studios $4 million an episode to make, ANNOUNCEMENTS BUSINESS OPPORTUNITIES
countries to agree on content. have sold shows country by studio executives say.
But taken together, the talks country. In the case of “Penny Taking the rich global-
are a burgeoning rebellion Dreadful,” Netflix bought rights rights fees Netflix offers can
against Netflix’s growing across seven territories, paying instantly make a show profit-

global might. The companies more than what regional play- able. But there are trade-offs

hope banding together will al- ers offered in total. The prices for studios. It is possible they

low them to make more ap- the bidders offered weren’t dis- could earn even more by sell- !" #
$ %
$ &
'
(
pealing offers to TV studios closed, as is generally the case ing a show to regional players.

that create and sell shows. in content-licensing deals. Ideally, studios would prefer to
“The competition is bloody Netflix so far only can offer nurture competitors to Netflix.
fierce,” said Jakob Mejlhede, a slim library in many new They “have become very
executive vice president at markets compared with its BUSINESS FOR SALE
wary of what the future might
Sweden’s Modern Times U.S. service, so the company look like if they enable much
Group, which operates Viaplay. has prioritized acquiring more of a global monopoly,”
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said Mike Sneesby, chief exec- Large Feed, Fertilizer and Retail Business for
bidding war with Netflix, you “We’ve gotten enormous utive of Australia’s Stan. Sale in North Texas. Strong management
are most likely going to lose.” support from content owners Global consortia haven’t team available to continue business. Growth
With 69 million total custom- for one reason—we’re outbid- materialized yet, but local in Sales and Profits over last 3 years.
Serving 5 counties with 5 locations.
ers, including 26 million outside ding local players,” Netflix Chief players are trying new ways of Contact buzreply@outlook.com or
the U.S., and a $5 billion content Executive Reed Hastings said in countering Netflix at home. 210-274-3299
budget for this year, Netflix is a recent interview. Prices are Media conglomerates such as
willing to outbid most any local “significantly higher” than just Sky, Sweden’s Modern Times
TV network or streaming ser- four years ago due to Netflix. Group and Australia’s Foxtel in- BUSINESS OPPORTUNITY BUSINESS OPPORTUNITY TRAVEL
vice. The company this month In the partnership discus- creasingly are buying television
announced it is now available in sions, some Netflix rivals such and streaming on-demand
more than 190 countries. as Sky are more focused on rights to shows in a single bun-
Still, Netflix has yet to turn its co-financing expensive origi- dled deal, effectively cutting out
SELF STORAGE EUROPE

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Investment secured by real estate.
8% cash-flow up to 26% IRR. 8 yr history.
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B6 | Tuesday, January 19, 2016 THE WALL STREET JOURNAL.
CFO JOURNAL.
Hot Spots to Shop for an Acquisition 58.3%
BY ALIX STUART
The Big Number
LKQ Corp. fuels its growth Average loss on junk

by buying other companies— bonds of energy and
lots of them.
The Chicago-based distribu- mining issuers
tor of used auto parts has
bought over three dozen re-
ranked lowest on
lated businesses in the past governance
two years and some 225 since
1998. Many were mom-and-
pop shops, but in recent years
LKQ has struck five of its larg- In the struggling high-yield
est deals with a different kind bond market, how a company
of owner: private-equity firms. handles governance matters
“You’re dealing with a may be a predictor of returns.
pretty sophisticated seller, That’s especially true in beaten-
which in some ways makes the down commodity sectors, includ-
process easier,” said Nick ing energy and mining.
Zarcone, LKQ’s finance chief. The junk bonds of commodity
According to Dealogic, U.S. companies that ranked in the
companies spent a record $142 bottom 5% on governance rela-
billion last year to buy 252 tive to their peers lost an aver-
businesses from private-equity age 58.3% in 2015, according to
investors, whose portfolios a recent MSCI Inc. study. That
have become an increasingly compares with an average total
important source of corporate return of 8.5% for the junk
acquisitions in recent years. bonds of commodity issuers
Among the biggest such that ranked in the top 5%.
deals were Endo Interna- The study suggests bond in-
tional PLC’s $8 billion pur- vestors may want to consider
JAMES O’BRIEN
chase of Par Pharmaceutical governance matters as they sift

Holdings Inc. from TPG and through their portfolios, said
J.M. Smucker Co.’s roughly $6 Linda-Eling Lee, global head of
billion acquisition of Big Heart environmental, social and gover-
Pet Brands from private-equity nance research at MSCI.
firms including KKR & Co., Ve- Private-equity firms buy because their owners typically but they don’t have much in- beyond a standard 5% set The 96 governance factors
star Capital Partners and companies, often using lots of take a hands-on approach to centive to invest in a business aside, since a private-equity MSCI weighed included dual-
Centerview Capital. debt, seeking to fix them up managing their assets. unit after deciding it doesn’t firm typically distributes sale class voting shares, board inde-
B&G Foods Inc., the Parsip- and selling them at a profit. “We have great respect for fit into their portfolio,” said proceeds to its partners. pendence and diversity. It
pany, N.J.-based owner of Selling to a corporate buyer the work they do with their Thomas Sauermilch, an attor- But deal makers say their tracked 387 commodity-com-
brands such as Cream of “is one of the most mutually portfolio companies to groom ney at McDermott Will & Em- due-diligence processes and pany bonds and 1,333 bonds
Wheat and Mrs. Dash, is ac- beneficial exit ramps” a pri- ery who has helped broker negotiating skills mitigate outside the commodity sector.
quiring the Green Giant and Le vate-equity investor can take, deals between private-equity these challenges, in some MSCI excluded companies for
Sueur brands from General said Nizar Tarhuni, an analyst
A corporate buyer firms and corporate buyers. cases along with so-called reps which it had no governance
Mills Inc. But its previous five for data provider PitchBook. can offer a ‘mutually Still, there are drawbacks to and warranties insurance to scores.
deals involved a private-equity While initial public offer- private-equity sellers. The cover any post-sale problems. Bottom performers included
firm looking to divest. ings typically yield the biggest
beneficial’ exit ramp deals often involve buying an “Deals are part of who we Peabody Energy Corp. Best per-
“You typically get brands payouts, getting a company for private equity. entire company, forgoing the are,” said Mr. Cantwell. “But formers included McDermott In-
that have had more attention ready for one can be very tax savings associated with we’re also willing to not do a ternational Inc.
paid to them,” said Robert costly and fraught with uncer- buying a single business unit, deal if it doesn’t make sense; A Peabody spokeswoman
Cantwell, B&G’s chief execu- tainty. The sum raised by IPOs them and get them to the next and can create an administra- we’re not going to overpay.” said the company has imple-
tive, of the companies in pri- on North American exchanges phase of growth; usually tive surplus. “We have to lay mented steps to reflect best
vate-equity portfolios. fell 65% in 2015, to $27.3 bil- they’re already profitable,” people off,” said Mr. Cantwell. EXPLORE ONLINE governance practices and re-
The value and volume of lion, according to research said Nicola Morris, head of There are also concerns ceives good ratings from other
such deals have ticked up, firm Renaissance Capital. corporate development at Wex that private-equity firms This coverage third parties. McDermott Chief
with corporate buyers acquir-
ing over 200 private-equity-
backed firms in each of the
Companies seeking ready
sources of growth through ac-
quisitions find private-equity-
Inc., a maker of payment tech-
nology for businesses.
By contrast, “corporate sell-
might cut the companies they
own too much or push growth
too fast. And buyers have no
WSJ
.COM
was produced by
CFO Journal. For
more, please
Executive David Dickson said
“strong corporate governance re-
mains a priority to the board.”
past five years, Dealogic says. backed businesses attractive ers kind of dress up the bride, recourse if things go wrong, visit wsj.com/cfoj —Richard Teitelbaum
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.
d
Edmonton <0 1 2 3 4 5 6 7 8 9 10 11 12 13 3 Mammy Yokum’s 32 Bloke from
0s
boy Bristol
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Vancouver C lgary
Calgary 14 15 16
10s
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20s
Seattle Winnipeg
10s 17 18 19 pages 35 Excursion
20s
Por
P d
Portland 20 21
5 Ties the knot 36 Supermodel
l t
Montreal 30s
Helena Ottawa 6 Poem of who’s a raw food
Bismarckk 0s
Billings 40s 22 23 24 25
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A g
Augusta exaltation advocate
Boise p s / . Paul
Mpls./St. 50s
P
Pierre 10s T
Toronto Ab
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Boston
26 27 28 29 7 Chick holder 37 Swellhead’s
30s rtford
Hartford 60s
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Milwaukee Cleve d
Cleveland New Yorkk
ew Y 70s 30 31 32
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Phhil d lphi
Philadelphia 80s
Pittsburgh
g h
Omaha 33 34 35 36 37 9 Egyptian for
Sacramento
Denver p i gfi ld Indianapolis
Springfield
T p k
Topeka Charles
Chh l t
Charleston h
hi
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Washington DC
D.C. 90s goddess of 42 “Fingers
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San Kansas Louisville 38 39 40 41
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L
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Springs St.. Lou
L
Louis h
Richmond d
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Wichita 10 Scrubbed launch
60s ta F
Santa Fe
Nashville
h ill l igh
Raleighh 42 43 44 45 43 Bread maker
Los A
Angel
Angeles C h l tt
Charlotte
kl homa City
Oklahoma Cit
C y 46 47 48 11 Liqueur used in 44 Parliament Hill
Albuquerque Memphis C b
Columbia
San Diego 70s Ph
Phoenix
LLittlee Rockk Atl t
Atlanta Warm Rain a Black Russian locale
T c
Tucson i h
Birmingham 49 50 51 52 12 ER hookup
El P
Paso Ft. Worth J k
Jackson 45 Starbucks
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b
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Mobile Jacksonville 53 54 55 13 Cliff hangers? energizer, and a
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A ti
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ew Orleans
New l d
Orlando 56 57 58 of this puzzle’s
80s an Antonio
San A t Tampa 19 “Blindspot”
0s 10s theme answers
Honolulu
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Showers Flurries 59 60 61 network
A h g
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80s 23 Southernmost of
lowering crane
Ice
SIZE MATTERS | By Elizabeth C. Gorski the Great Lakes
47 Note above fa
24 Muffin or
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 26 Pie pans 46 Classic 1950 Honeybun 48 Opposite of “oui”
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Partner’s share, 27 ___ Rabbit film noir 50 Residents: Suffix
Omaha 21 7 sn 29 21 c Frankfurt 28 20 s 32 23 pc 27 Future blooms
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 55 36 pc 65 47 pc Geneva 37 30 c 41 30 sf perhaps (Uncle Remus 47 Escalator part 51 “Bye!” in Bologna
Today Tomorrow character) 28 Pitt of “The Big
Philadelphia 29 22 s 38 26 pc Havana 68 63 s 73 63 pc 5 Misfortunes 48 “Prometheus” Short” 52 Play a round
City Hi Lo W Hi Lo W Phoenix 70 48 pc 70 48 s Hong Kong 67 61 pc 66 63 r
9 Finalize, as a 28 Scottish star Rapace
Anchorage 25 21 c 27 20 sn Pittsburgh 18 8 pc 24 12 sn Istanbul 36 29 sf 40 35 pc
hillside 29 Friend of Harry 54 Prof. helpers
Atlanta 39 25 s 45 38 r Portland, Maine 21 16 s 27 12 s Jakarta 89 78 t 89 78 t comic strip 49 Brandy flavor
and Hermione 55 Numeral
Austin 70 45 c 66 51 pc Portland, Ore. 47 41 r 51 45 sh Jerusalem 48 41 sh 49 38 c 14 Mishmash 30 Dir. opposite 52 Lose its
Baltimore 28 17 s 36 22 pc Sacramento 57 47 r 61 46 c Johannesburg 77 59 t 76 60 c WSW 31 Barbershop opposite IX on a
15 Upper hand carbonation
Boise 45 33 sh 43 28 sn St. Louis 26 21 sn 32 24 sf London 38 28 s 39 30 s sound clock
Boston 26 19 s 32 21 s Salt Lake City 42 35 sn 38 22 sn Madrid 48 36 pc 48 37 sh 16 Dry white wine 31 Diamonds, for 53 Exhausting
Burlington 18 14 sf 23 10 c San Francisco 59 49 r 60 51 c Manila 89 78 s 88 76 c from Italy example things? Previous Puzzle’s Solution
Charlotte 36 18 s 42 28 pc Santa Fe 46 24 pc 48 22 sn Melbourne 93 63 pc 80 62 pc 32 “My man” 56 “___ bad moon P A R I N G S C L E A N S E
Chicago 16 11 pc 23 15 sn Seattle 48 43 sh 52 44 sh Mexico City 70 46 pc 68 42 s 17 Nascar-inspired A G E N O R M H A N D O U T
Cleveland 19 11 sf 22 14 sn Sioux Falls 17 8 sn 24 14 c Milan 38 23 s 39 24 s comedy starring 33 A diva knows rising...” R OMA N I A A N D O R R A
Dallas 65 35 c 56 45 pc Wash., D.C. 28 18 s 35 25 pc Moscow 16 10 sn 14 8 sn Will Ferrell how to make 57 Loudly lament P O T S M O K E R
Denver 37 23 sn 44 22 c Mumbai 84 63 pc 84 64 pc A I D E S H O T D E N T S
20 Shower outlets one 58 Director Kazan T R O T L E N I N D A R T
Detroit
Honolulu
23 12 s
82 65 s
23 13 sn
80 66 r
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Rio de Janeiro
36 25 c
80 70 pc
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C C O
O R E
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Houston 68 53 pc 70 59 sh Today Tomorrow Riyadh 78 52 s 74 47 s of thee...” section N E I L L G B S G R O O M
City Hi Lo W Hi Lo W brand E D N A F R U I T I N N S
Indianapolis 17 11 pc 25 16 sn Rome 47 30 r 49 38 c 39 Like the
Kansas City 24 16 sn 31 25 c Amsterdam 38 30 pc 41 29 sh San Juan 83 74 pc 83 73 pc 22 Perth ___, New 60 “Don’t you P A L E S T I N E
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E X A C T T I O I G L O O
Little Rock 44 37 c 51 34 r Bangkok 89 77 c 90 77 pc Shanghai 39 31 s 43 36 c
23 Sweeping saga 40 Justice Dept. 61 Coup d’___ D E C O R E D U S O L A R
Los Angeles 64 55 sh 67 49 pc Beijing 28 4 s 25 10 c Singapore 89 78 t 87 79 pc S L OMO N E T E V A D E
heads Down
Miami 65 52 pc 71 59 pc Berlin 26 21 pc 29 18 sf Sydney 85 70 s 92 73 pc 25 Swiss financial The contest answer is ROAD MAPS, formed out
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domains (.com, .edu., .gov, .mil, .net and .org) in
Solve this puzzle online and discuss it at WSJ.com/Puzzles. the grid.
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Oklahoma City 53 25 c 47 30 c Edinburgh 38 27 c 35 27 pc Zurich 35 30 sn 37 23 sf

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MOVING THE MARKET C2 | MARKETS DIGEST C4 | CLOSED-END FUNDS C5
RICK BOWMER/ASSOCIATED PRESS

A Challenge for Peru Rift Roils the
Bitcoin Crowd
Hedge fund seeks bond repayment GLOBAL FINANCE | C3 TECHNOLOGY | C6
© 2016 Dow Jones & Company. All Rights Reserved. * * * * ** THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | C1
DJIA 15988.08 Closed S&P 1880.33 Closed NASDAQ 4488.42 Closed 10–YR. TREAS. Closed, yield 2.035% OIL $29.42 Closed EURO $1.0894 YEN 117.35 See more at WSJMarkets.com
Barclays Beating a Retreat Warning Signs

The spread between yields on investment-grade corporate bonds
and government bonds have reached the 1.5-percentage-point level
typically associated with an economic or market downturn.
New CEO makes his The decision is part of a cording to people familiar nearly a century, making it
plan by new Chief Executive with the matter. one of the leading Western Spreads on investment-grade bonds U.S.
mark with plans to sell Jes Staley to refocus the bank The bank plans to sell some banks, along with Standard 6 percentage points Eurozone
off big stake in bank’s on a narrower range of profit- of its 62% stake in Barclays Chartered PLC and Citigroup
Africa Group Ltd., the publicly Inc., operating on the conti-
African business By Max Colchester in traded entity that houses most nent. Successive CEOs touted 5 Lehman Brothers
Eurozone
governments and the
London and of its African business, these the business as a growth files for bankruptcy IMF agree on a revised
Barclays PLC, a leader Matina Stevis in people said. The company is driver. But amid investor and protection. bailout plan for Greece.
among Western banks in sub- Nairobi one of Africa’s largest banks, regulatory pressure, Barclays, 4
Saharan Africa, is drawing up employing about 44,000 peo- like many of its European
The aftermath Stock markets fall
plans to retreat, as its new able activities. Executives have ple and running 1,267 peers, is having to pull back
of the bursting of the on anxiety over
chief tries to slim down the concluded that being the ma- branches. from its global ambitions. U.S. Internet bubble. China and slowing
3
bank and lenders world-wide jority owner of a sprawling Af- It marks a symbolic rever- Since Mr. Staley’s arrival global growth.
dial back their ambitions in rican business no longer fits sal for Barclays. The bank built late last year, the former J.P.
risky emerging markets. with the bank’s strategy, ac- up its African network over Please see AFRICA page C2
2
1.5 points
1
0
2000 ’05 ’10 ’15
Note: Spreads are based on Barclays fixed-income aggregate indexes; data for 2000 are monthly
Source: Barclays THE WALL STREET JOURNAL.
Europe’s Corporate
Bonds Trading at
Recession Levels
BY CHRISTOPHER WHITTALL watching corporate bonds.
Spreads hitting the levels they
A wave of selling has taken are currently trading at in Eu-
Europe’s corporate-bond mar- rope and the U.S. typically oc-
ket to levels typically seen dur- cur during periods of height-
ing recessions, another indica- ened market stress.
tion that the turmoil in global “Spreads in European corpo-
markets could spread into the rate-bond markets are at levels
wider economy. consistent with a recession,”
The gap in yields, or spread, said Zoso Davies, a credit strat-
Merr
Me
Merrill
rriilill Lynch
Ly
ync
nch
h in
in 11958
958
9
958 between eurozone high-grade egist at Barclays PLC, who sees
corporate debt and safer gov- the current levels as reflective
Morgan Stanley is NET REVENUE ADVISERS CLIENT ASSETS ernment bonds has ballooned of a slowdown in global manu-
increasingly $15.0 billion 20,000 $2 trillion to its widest level in nearly facturing and falls in commod-
three years, according to Bar- ity prices.
challenging Merrill's clays bond indexes. Three years “The question is whether
top position in 7.5 10,000 1 ago, the European economy that broadens out into a global
wealth management. was in recession following the slowdown affecting other areas
Merrill Lynch sovereign-debt crisis that had of the economy,” he added.
Morgan Stanley* 0 0 0 engulfed the continent. Bond markets can’t always
’07 ’09 ’11 ’13 ’15 ’07 ’09 ’11 ’13 ’15 ’07 ’09 ’11 ’13 ’15 The latest move comes as fi- be relied upon to predict a
nancial markets, from equities slowdown in economic activity.
Note: Morgan Stanley began joint venture with Citigroup in 2009 and took full control in 2013; 2015 data are nine months ended Sept. 30 *Wealth-management division to oil, extended sharp falls in Still, credit spreads above 1.5
Source: the companies Photo: Walter Sanders/The LIFE Picture Collection/Getty Images THE WALL STREET JOURNAL. Asia and Europe on Monday. percentage points are histori-
Concerns over the Chinese cally associated with troubled
Merrill ‘Herd’ Faces Turning Point

economy and a glut of com- times, according to Mr. Davies,
modities continued to weigh on such as the 2008 financial cri-
prices. The U.S. markets were sis and the eurozone sovereign-
closed for Martin Luther King debt turmoil of 2010 to 2012.
BY CHRISTINA REXRODE brokerage unit the crown jewel last year. Bank of America and them from joining other firms, Jr. Day. At midday Tuesday, Stress in U.S. corporate-
AND MICHAEL WURSTHORN of the deal. Morgan Stanley report earnings brokerage recruiters say. the Shanghai Composite was up bond markets has been mostly
The No. 1 brokerage in the on Tuesday. The developments together 2.3% after China reported its confined to junk-rated borrow-
Can Bank of America Corp. country for most of the past de- Equally significant, many of could mark the next phase of a economy grew by 6.9% in 2015, ers, a large portion of which is
finally corral Merrill Lynch’s cade, Merrill is now at risk of Merrill’s thundering herd of bro- tempestuous transition, in the weakest in a quarter cen- exposed to commodities prices.
“thundering herd”? slipping to No. 2 behind Morgan kers are eyeing greener pastures which some Merrill advisers say tury. Fourth-quarter growth Only last week, investors
This year marks an inflection Stanley in terms of annual reve- for the first time since the they feel they have been slowly came in below expectations. placed more than $100 billion
point for the bank, which seven nue. Morgan Stanley was merger, with the expiration this downgraded from a jewel to a While shares and commodi- of orders for $46 billion of debt
years ago bought Merrill Lynch slightly ahead of Merrill by that month of lucrative retention cog in the machine of the sec- ties plunge, investors across all sold by Anheuser-Busch InBev
& Co.—and dubbed the firm’s measure through three quarters packages that kept many of Please see MERRILL page C2 markets have been closely Please see BONDS page C3
Netflix’s Rally Looks Vulnerable

BY STEVEN RUSSOLILLO out a specific catalyst. moved up or down at least
If history is a guide, Net- 10% on more than half of
Netflix Inc. boss Reed Has- flix’s fourth-quarter results on those occasions.
tings is ahead of the curve in Tuesday will likely prompt an- Two key metrics to watch
many respects. That may in- other big move. Analysts ex- are subscriber growth and
clude the vulnerability of his pect earnings of 2 cents a content costs. In the third
company’s share price. share, down from 10 cents a quarter, Netflix added fewer
In 2013, when year earlier. Revenue is esti- domestic subscribers than ex-
AHEAD OF Netflix surged mated to increase 23% to pected, although it fared bet-
THE TAPE nearly 300% as $1.83 billion. ter internationally.
the top S&P 500 Over the past 20 quarters, For the fourth quarter, Net-
YANG GUANYU/XINHUA/ZUMA PRESS
performer, he Netflix has exceeded earnings flix projects 5.15 million new
said “momentum-investor- expectations all but once. But subscribers, with about two-
fueled euphoria” was driving the stock’s reaction has been thirds from overseas.
the rally. The shares have anything but consistent. In But new subscribers don’t
doubled in value since. that same time, shares have come cheap. Streaming con-
And last year, when the tent obligations—more than
popular video-streaming ser- half of which are held off bal-
vice again was the S&P 500’s Be Kind, Rewind ance sheet—exceeded $10 bil-
biggest gainer, Mr. Reed called Netflix’s daily share price lion in the third quarter for a
it a mystery. “I should keep second time in a row. They Citic Securities’ Wang Dongming is retiring from a firm he built into China’s biggest brokerage.
my day job and not try to be a $150 were lower by about one-third
stock picker,” he said in July.
The difference this time is
that Netflix shares—up more
than 600% over the past three
125
100
CEO Hastings's
two years ago.
Trading at more than 400
times estimated 2016 earn-
ings, Netflix is the mother of
How Citic Landed in Hot Water
75 comments
years—are roughly unchanged momentum stocks. With mo- BY JAMES T. AREDDY could play in the big leagues of appeared to zero in on Citic
from the summer, fanning 50 mentum falling out of favor AND SHEN HONG global finance. Securities by detaining many
concerns the rally has indeed for the broad market recently, But by the time Mr. Xi ar- of its top officers, including
gone too far. And in this rar- 25 it is vulnerable to even a mild SHANGHAI—As Chinese rived in mid-September, the the executive spearheading the
efied air, the stock is particu- disappointment. President Xi Jinping prepared deal by Citic Securities for the acquisition.
0
larly susceptible to market Look out below. last fall to kick off a U.S. trip Seattle-based mutual-fund On Tuesday, Citic Securities
turbulence. Case in point: 2011 ’12 ’13 ’14 ’15 ’16 with a visit to Seattle, Beijing’s firm had fallen apart amid a Chairman Wang Dongming,
Wednesday’s 8% tumble with- Source: WSJ Market Data Group Email: tape@wsj.com most prominent securities firm crackdown on the Chinese bro- who hasn’t been accused of
was negotiating a $1 billion- kerage. Numerous agencies any wrongdoing, is set to re-
plus acquisition there of Rus- were probing the market for tire from the firm he built into
INDEX Closed-End Funds........................................ C5 Financial Flashback..................................... C4 Heard on the Street.................................... C6 New to the Market.............................. C4
Borrowing Benchmarks.................... C5 Currencies........................................................... C2 Global Finance................................................. C3 Markets Digest.............................................. C4 Ticker.............................................................. C2 sell Investments, a signal the problems after a summertime China’s largest brokerage; he
country’s state-run enterprises market crash and they soon Please see CITIC page C5
C2 | Tuesday, January 19, 2016 THE WALL STREET JOURNAL.
MOVING THE MARKET

THE TICKER | Market events coming this week
Tuesday Housing Starts Jan., expected -5

Nov., previous 1.17 mil.
Earnings expected*
Dec., expected 1.20 mil. Earnings expected*
Estimate/Year Ago($)
BofA 0.27/0.25 Estimate/Year Ago($)
Comerica 0.69/0.80 Building Permits AmEx 1.13/1.39
Linear Tech. 0.46/0.51 Nov., previous 1.28 mil. Schlumberger 0.63/1.50
UnitedHealth 1.25/1.55 Dec., expected 1.20 mil. Starbucks 0.45/0.40
Travelers 2.67/3.07
Earnings expected* Union Pacific 1.42/1.61
Wednesday Estimate/Year Ago($) Verizon 0.88/0.71
Mort. bankers indexes F5 Networks 1.60/1.55
Purchase, prev. up 18% Goldman Sachs 3.57/4.38
TD Ameritrade 0.36/0.39 Friday
Refinan., prev. up 24%
Existing Home Sales
Nov., previous 4.76 mil.
EIA status report Thursday
Previous change in stocks in Dec., expected 5.30 mil.
millions of barrels Initial jobless claims
Crude oil up 0.2 Previous 288,000 Leading Indicators
Gasoline up 8.4 Expected 277,000 Nov., previous up 0.4%
Distillates up 6.1 Dec., expected down 0.2%
CHRIS RATCLIFFE/BLOOMBERG NEWS
EIA report: natural-gas

Consumer price index Previous change in stocks in Earnings expected*
All items, Nov. 0.0% billions of cubic feet
Estimate/Year Ago($)
Dec., expected 0.0% down 168
Citizens Fin. 0.42/0.39
Core, Nov. up 0.2% GE 0.49/0.56
Dec., exp. up 0.2% Philadelphia Fed SunTrust 0.87/0.72
Dec., previous -5.9
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY
ITEMS (LOSSES IN PARENTHESES) ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM DOW JONES
WEEKLY SURVEY OF ECONOMISTS
Coffee purveyor Starbucks is scheduled to report quarterly results Thursday. Analysts expect profit of 45 cents a share.
Puerto Rico Debt-Payment Gap Widens MERRILL Continued from the prior page
portant than ever on Wall
Street, as banks strive to be-
come less dependent on volatile
investment-banking and trading
BY AARON KURILOFF cal adjustments, the island and instead will merely pro- islation allowing the common- ond-largest U.S. lender. The old operations.
said. long this crisis,” she said in a wealth to restructure its Merrill culture is “gone…it’s just Mr. Laughlin, 61 years old, a
Puerto Rico is running out Melba Acosta, president of statement. debts, with U.S. Treasury Sec- Bank of America now,” said Rick longtime adviser to Mr. Moyni-
of money faster than ex- the Government Development Puerto Rico owes investors retary Jacob Lew scheduling a Peterson, president of a broker- han, has often been tasked with
pected, leaving an increasing Bank for Puerto Rico, said about $70 billion and is strug- trip to the island this week. age recruitment firm that bears fixing problem areas within the
hole in the amount needed to those changes would be re- gling with a weak economy Matt Fabian, partner at the his name. bank, but he said Merrill is al-
operate and pay investors flected in a comprehensive re- and declining population that research firm Municipal Mar- Merrill still leads Morgan ready running extremely well. It
over the next decade, accord- structuring proposal for credi- last year led Gov. Alejandro ket Analytics, said the new Stanley in most important met- recently finished upgrading a
ing to an updated fiscal plan tors being prepared by the García Padilla to declare its numbers “look a bit better- rics, including client assets. new operating platform for ad-
released by the U.S. common- commonwealth, which will in- debts unpayable. The com- tied to reality by admitting Bank of America also says it re- visers, which has helped attract
wealth Monday. clude both government cuts monwealth began defaulting that Puerto Rico’s economy is mains committed to expanding some advisers from rival firms.
Puerto Rico’s new estimates and losses for investors hold- on bonds with its weakest le- probably not headed for a ro- wealth management, a prized In the third quarter, its advisers
show the commonwealth ing a variety of bonds from gal pledge in August and bust growth phase anytime business across Wall Street due brought in an average of $1 mil-
about $16 billion short of the the island. missed about $37 million in soon. to its predictable returns, lion in annualized revenue, com-
money it needs to cover debt “Solutions that seek to kick payments earlier this month “Extending projections an- though it also has to stay true to pared with $922,000 at Morgan
payments over the next five the can down the road, burden after diverting money to pay other five years is highly ap- Chief Executive and Chairman Stanley, and Merrill leads in
years, a figure 15% bigger than the economy with unsustain- some investors at the expense propriate, but it is still very Brian Moynihan’s mandate to bank products like loans and de-
in the plan released by the is- able debt levels or allocate all of others. unclear how exactly Puerto cut costs and tamp down risk. posits by a wide margin.
land in September. The gap of the debt-restructuring bur- The Obama administration Rico will be in better financial “The industry has to adapt, That is exactly what Morgan
over 10 years is almost $24 den to one class of credits on Friday ramped up calls for shape 10 years hence,” he but Merrill Lynch has always Stanley is trying to boost, and it
billion, even with planned fis- over another will not work the U.S. Congress to pass leg- said. adapted,” said Terry Laughlin, a has closed the brokerage gap in
Bank of America executive who recent years by borrowing some
this month took over wealth of Merrill’s tricks. The firm, run
AFRICA Continental Drift

Barclays is planning to sell some of its majority stake in its African
business, which in 2014 had 12 million customers.
Annual profit before taxes
management, where Merrill is
the biggest component.
In interviews, Mr. Laughlin
and other bank executives em-
by former Merrill executive
James Gorman, has been round-
ing out its banking and lending
capabilities, something Merrill
Continued from the prior page Barclays Barclays Africa phasized that the Merrill Lynch did years ago. It also is convert-
Morgan Chase & Co. executive Barclays Africa customers by country in 2014 £8 billion culture as they see it is about ing more customers to fee-based
has sought to cut weak units. South Africa 9,200,000 putting clients first—“and that accounts instead of commission-
Barclays is chopping back its Kenya 769,000 is as strong as ever,” Mr. Laugh- based accounts. Morgan Stanley
investment-banking operations 6 lin said. took a much bigger stake in
Tanzania 561,000
in Asia and selling unwanted The bank has noted it will wealth management when it
assets in Europe. Ghana 526,000 save $400 million because of bought Smith Barney from Citi-
4
Previous CEOs, including Mozambique 246,000 the expiration of the retention group Inc., a purchase it com-
Bob Diamond and Antony Jen- Zambia 242,000 agreements, which were given pleted in 2009.
kins, were enamored with Bar- out in 2008 to prevent a mass Through the first three quar-
Botswana 203,000 2
clays’s unique African foot- exodus following the merger. ters of last year, the Morgan
print. In 2005, Barclays Uganda 136,000 Some recruiters forecast a wave Stanley brokerage unit held a
bought a majority stake in Mauritius 96,000 0 of highly paid veteran brokers slim lead over Merrill in reve-
South African bank Absa, Seychelles ’09 ’10 ’11 ’12 ’13 ’14
could leave the firm this year, nue, $11.35 billion to $11.23 bil-
17,000
building on a steady stream of which would further lower costs
acquisitions. Mr. Diamond,
who resigned in 2012, outlined
Source: the company Note: £1 billion = $1.42 billion THE WALL STREET JOURNAL. but also potentially hurt reve-
nue.
The bank will save
a “One Bank in Africa” strat- have accelerated the planning, remained high, and risks asso- major companies and the A half-dozen brokerage re- $400 million from
egy, pointing to population
growth in the region and its
questioning the fit of a big Af-
rican business and wondering
ciated with the venture have
skyrocketed.
banks that are based there.
Last week, Fitch Ratings
cruiters described being in talks
with dozens of Merrill brokers
the expiration of the
expanding middle class. Absa whether the capital locked up In South Africa, where the warned in a report that the each, the most in years. That is retention pacts.
was consolidated with other in the unit would be better bulk of Barclays’s African ac- banking sector for the whole expected to increase as the year
African businesses across the used in its key corporate- and tivities are based, the currency of sub-Saharan Africa is goes on, they said.
continent. investment-banking units. has plummeted as the country headed for a bad year. Banks The expiration of the con- lion.
As Barclays prepares a re- The timing and mechanics grapples with a mineral-price are “likely to face slower tracts is “making a lot of folks Morgan Stanley declined to
treat, Mr. Diamond is moving of selling the stake are un- collapse and political instabil- growth, weaker earnings, look at their options,” said Chris comment.
in the opposite direction. He clear, but more details could ity. worsening asset quality and Dupuy, a former Merrill manag- Bank of America has re-
co-founded his own bank, At- emerge when Barclays an- The rand has lost more tighter liquidity and capital- ing director who oversaw more sponded by trying to take Mer-
las Mara, which is snapping nounces its 2015 results on than one-quarter of its value ization,” Fitch said. than 1,000 advisers and left in rill’s cross-selling to another
up assets across sub-Saharan March 1, when Mr. Staley out- against the dollar in the past The International Monetary 2014. level. This year, each adviser is
Africa. lines his vision for the bank. six months. Fund in October dramatically Adding to the unrest: Some expected to make at least one
For the past year, Barclays The African banking unit Woes have been com- cut the sub-Saharan region’s Merrill advisers’ pay could slip referral to another part of the
executives have considered generated £791 million ($1.1 pounded by what analysts see 2015 growth forecast to 3.75%. this year because of higher hur- bank. The bank says advisers us-
ways to pare back the bank’s billion) of pretax profit in the as a weak government re- Finding an outright buyer dles on how much revenue they ing all the bank’s resources can
exposure to Africa. Mr. Staley first nine months of last year, sponse—the country’s presi- for Barclays’s African business must generate for the bank to offer more products and bigger
and Chairman John McFarlane 15% of the bank’s total. Costs dent changed three finance is unlikely, bankers said. The receive base levels of compensa- loans to meet client needs.
ministers in a week late last commodity-price crash and tion, part of the company’s big- Some brokers, though, con-
year, rattling markets. China’s economic slowdown gest changes to its compensa- sider the bank ties a distraction
The South African malaise have dulled the appetite for tion plan since 2009. Merrill and would rather focus on their
ADVERTISEMENT bodes ill for the continent’s emerging-markets assets. also slashed how much it pays traditional role pitching stocks
brokers to work with clients and bonds. “There’s a lot that
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To advertise: 800-366-3975 or WSJ.com/classifieds Currencies
who have less than $250,000 in
assets, to encourage them to
we were required to do that
didn’t add value,” said Paul
work with wealthier investors. Squarcia, a 15-year Merrill bro-
U.S.-dollar foreign-exchange rates in late New York trading Merrill and Bank of America ker who resigned in November
US$vs, US$vs,
INTERNATIONAL NOTICES DEA Mon YTDchg Mon YTDchg was an uneasy marriage from to launch his own wealth-man-
Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) the start. Merrill brokers prized agement firm.
Americas Vietnam dong .00004463 22405 1.2 their independence and feared Mr. Laughlin, who never

Argentina peso .0715 13.9820 8.1 Europe their pay and autonomy would worked as a financial adviser

Brazil real .2466 4.0557 2.4 Czech Rep. koruna .04029 24.819 –0.3 be scaled back under the owner- but spent three years at Merrill

Canada dollar .6868 1.4561 5.2 Denmark krone .1459 6.8519 –0.3 ship of a firm that boasted of earlier in his career, said the

!" # $% &
Chile peso .001369 730.40 3.1 Euro area euro 1.0894 .9180 –0.3 being “the Wal-Mart of bank- emphasis on cross-selling is part

' ( )(# ) Colombia peso .0003028 3302.40 4.0 Hungary forint .003454 289.51 –0.3

) ' Ecuador US dollar 1 1 unch Iceland krona .007691 130.03 –0.1
ing.” Gone are the holiday par- of a natural evolution to better
( ties of the precrisis Merrill, and serve clients. Bank of America,

Mexico peso .0549 18.2078 5.9 Norway krone .1123 8.9011 0.7
' (( ) ( *+ '
!
"
( )( ,- Peru new sol .2915 3.430 0.5 Poland zloty .2441 4.0962 4.4 the international unit was sold he said, doesn’t interfere with
*+ ' ( Uruguay peso .03252 30.7500 2.8 Russia ruble .01260 79.349 10.4 to a Swiss firm, which means advisers that want to focus on

"

# " $%&$ $%' ()*$
' #(( & ' Venezuela b. fuerte .158603 6.3051 unch Sweden krona .1166 8.5785 1.6 overseas travel to see clients stocks and bonds over checking
( '
)+,)-&$./ 0
11,*)2&$)*/ $- Asia-Pacific Switzerland franc .9947 1.0053 0.3 has been curtailed.
)*$'*- $ 1&3' & 0,.$% &*- 4*&5 -)6)-'*- $
( # # *+ '
( accounts and loans. “I’m not go-
' ) ( ((# . // Turkey lira .3294 3.0361 4.1
,*/'2,.'- 2.'-)$./ )* $%)/ 1&$$'.
& # $% $ 0++00
Australian dollar .6871 1.4554 6.1
Ukraine hryvnia .0406 24.6035 2.5
Many Merrill veterans still ing to change that,” he said.
%' 4./$ /'2*- &*- $%).- )*$'.)1 -)6)-'*-/ China yuan .1520 6.5779 1.3
)* $%)/ 1&$$'. 7'.' 8&)- )* 8.)5 &9 (. +12021+03 ) ( UK pound 1.4243 .7021 3.5 use their old brand on their Win Smith, a former Merrill
! &*- (&*,&.9 .'/8'2$)6'59 (
Hong Kong dollar .1282 7.7989 0.6
4'. !0" Middle East/Africa business cards and work at of- executive and the son of one of
*9 2.'-)$./ -'/).)*: $ 8&.$)2)8&$' )* $%)/ India rupee .01478 67.662 2.2
-)6)-'*- &*- 7%/' 8.0 0 -';$ %&/ *$ / - (5
Indonesia rupiah .0000717 13938 0.7 Bahrain dinar 2.6520 .3771 unch fices without any prominent Merrill’s co-founders, said the
9'$ ;''* 45'- &*-<. &:.''- ;9 $%' ()*$ /6++//1 7. +820821+++ -
)+,)-&$./ &.' .'+,).'- $ /,;1)$ $%'). 0,55 . 61 3++ 906: $ $ Japan yen .008522 117.35 –2.4 Egypt pound .1276 7.8354 0.1 Bank of America signs. combined firm is working well
*&1' 1&)5)*: &--.'// &*- 0,55 8&.$)2,5&./ 0++*1
4'. Kazakhstan tenge .002743 364.50 7.6 Israel shekel .2529 3.9549 1.6 Bank of America estimates for Merrill veterans who “ha-
0 $%'). -';$ . 25&)1 $ $%' ()*$ )+,)-&$./ !0" *6: ; ;&(& -
2< .)2'7&$'.%,/'8'./ -6)/.9 Macau pataca .1245 8.0322 0.4 Kuwait dinar 3.2861 .3043 0.3 that about two-thirds of the ven’t impulsively rejected the
)1)$'- .2%'/$'. ,/' = %,.2% $.''$ (506<-/0+6< !0" 9 0*++-
01 (5 11<800 Malaysia ringgit .2275 4.3960 2.2 Oman sul rial 2.5974 .3850 unch brokers who came in with the bank.”
&1)5$* '.1,-& . ;9 '1&)5
$ 3.)/$9*0'557'/>;187221 ;9 ?$% 7 +/20620/// . *8-1< # New Zealand dollar .6451 1.5501 5.9 Qatar rial .2747 3.641 –0.1
';.,&.9 ? . )* -'0&,5$ $%'9 7)55 ;' & =, $ 0+83*
Pakistan rupee .00953 104.940 unch Saudi Arabia riyal .2666 3.7505 –0.1
Merrill acquisition are still “If you put everybody in a
'@25,-'- 0.1 $%' ;'*'4$ 0 $%)/ -)6)-'*- 4'. !0" *< () >% Philippines peso .0209 47.788 2.0 South Africa rand .0593 16.8743 9.0 there. The bank says that attri- room and said, ‘Would you pre-
.0 0 -';$ 0.1/ 1&9 ;' ;$&)*'- &(& (5 00*138
;9 7.)$)*: $ $%' ()*$ )+,)-&$./ &$ $%' 7. +/2+321+++ . /8-+6 83 Singapore dollar .6947 1.4395 1.5 tion has been steadily dropping, fer Merrill had remained inde-
&--.'// . '1&)5 &--.'// *$'- &;6' Close Net Chg % Chg YTD%Chg
&$'- $%)/ $% -&9 0 (&*,&.9 ?
& ? $ 00*:* South Korea won .0008254 1211.57 3.0 and that most of the brokers pendent?’, I think everyone
Sri Lanka rupee .0069483 143.92 –0.2 WSJ Dollar Index 91.51 0.19 0.21 1.48 who left were trainees. would say yes,” Mr. Smith said

()*$ )+,)-&$./ Taiwan dollar .02982 33.540 1.9 Sources: Tullett Prebon, WSJ Market Data Group Meanwhile, the wealth-man- of his former colleagues. “But
Thailand baht .02754 36.310 0.8
agement business is more im- that’s not a reality.”
THE WALL STREET JOURNAL. * * * * * * Tuesday, January 19, 2016 | C3
GLOBAL FINANCE
Hedge Fund Challenges Peru on Bonds
Gramercy Funds they are owed about $5 billion spent about $15,000 in ex- Law School professor John Cof-
and the government calculating penses on the fight. fee to provide a legal opinion
Management says it is a far lower sum. Peru stopped International attention is un- on Peru’s disclosures to inves-
owed more than $1 paying on the bonds by 1992 in likely to push Peru to pay under tors. According to Mr. Coffee,
the aftermath of the Latin the rule of President Ollanta Peru violated the Securities Act
billion on land debt American debt crisis. Humala but could work after he of 1933 in October when it is-
When Peru passed a decree is replaced in general elections sued a €1.1 billion ($1.2 billion)
LUIZ RAMPELOTTO/LIGHTROCKET/GETTY IMAGES

BY MATT WIRZ in January 2014 to pay less this year, Mr. Aedo said. bond, telling investors in offer-
than 10% of what bondholders So far, buyers of Peru’s inter- ing documents that the country
A Connecticut hedge fund is say they are owed, Gramercy national bonds see Gramercy’s was “not involved in any dis-
waging a campaign to make sent an executive to Lima to campaign as little more than a putes with its internal or exter-
Peru pay off land bonds it de- push for a settlement. He re- sideshow. A 10-year bond the nal creditors.”
faulted on two decades ago, ceived a three-word answer country issued in October Land bondholders have filed
echoing financial firms’ tactics from a government official, ac- traded last week at a yield of at least 450 lawsuits seeking
in recent years in Argentina, cording to a person briefed on 2.4%, about the same as bonds payment from the government,
Greece and Iceland. the matter: “Make us care.” of blue-chip corporations like according to a document pro-
About a decade ago, Gra- Gramercy, with $6 billion un- Johnson & Johnson. vided by Peru’s Ministry of
mercy Funds Management der management, responded by “We quite like Peru,” said Economy and Finance to Gra-
LLC began buying agrarian hiring lobbying firm Podesta Koon Chow, a senior macro and mercy’s lawyers.
bonds held mostly by Peruvians Group to sway U.S legislators to Peru’s stance on paying the debt may change after President foreign-exchange strategist at Peru “is diligent in its man-
who received them when their support bondholders, joining lo- Ollanta Humala leaves office after elections later this year. Union Bancaire Privée, citing agement of debt issuances and
family farms were expropriated cal bondholder groups and wag- Peru’s economic growth, tight disclosures,” a government offi-
by the government in the 1960s. ing a media campaign at the In- option it likely prefers to keep shape—its single-A credit rating fiscal policy and substantial re- cial said.
Gramercy bought about 20% of ternational Monetary Fund’s open at a time when a global ranks it above Ireland and It- serves. He said the country has Debate has dragged on about
the bonds at a fraction of their October meetings in Lima. plunge in commodities prices aly—and because most of the the money to pay any judgment how much is owed on the bonds
face value and now says it is Now, the firm has obtained a has caused budget deficits. bondholders demanding repay- if a new government decides to because they are denominated
owed more than $1 billion, ac- legal opinion accusing Peru of It isn’t unusual for hedge ment are locals. do so. in a now-defunct currency Peru
cording to people familiar with violating U.S. securities regula- funds to squeeze cash-strapped “We haven’t lost hope of get- When hedge funds buy de- used before several bouts of hy-
the matter. tions in an effort to spur the governments to pay defaulted ting paid,” said 72-year-old Ed faulted sovereign debt, they perinflation. Peru contends it is
The government disputes U.S. Securities and Exchange bonds. Paul Singer’s Elliott As- Aedo, who said his family is typically buy international willing to repay bondholders in
that figure, and successive ad- Commission to sanction Peru. A sociates used that strategy to owed as much as $8 million on bonds so they can fight the compliance with a July 2013
ministrations have ignored Pe- spokeswoman for the SEC de- force Peru to repay bonds in bonds his late father received in countries in U.S. or European ruling by the country’s highest
ruvian court orders to pay up. clined to comment. 2000 and has been fighting a exchange for his alpaca ranch courts, hampering the debtors’ court valuing claims at no more
At issue is how to adjust bond- Peru is subject to SEC regu- similar action against Argentina almost five decades ago. “Even access to global markets. But than $24 million, according to
holder claims for decades of in- lation because it borrows in since 2004. if we don’t enjoy it ourselves, the land bonds are governed by Mr. Coffee.
flation and missed interest pay- global markets by issuing bonds This fight is different be- we will see our children enjoy Peruvian law. —Carolyn Cui and Ryan Dube
ments, with bondholders saying governed by New York law, an cause Peru is in strong financial it,” said Mr. Aedo, who has Gramercy hired Columbia contributed to this article.
French Asset Manager Amundi Is Buying Riskier Debt

BY CHRISTOPHER WHITTALL a minor jump in bond yields, have absolutely no cushion a positive return of 8.4% in greater risk of default. Ms. Al- corporate defaults tend to pick
which rise as prices fall, can against volatility.” 2014, according to Barclays. lier said she believes European up.
Europe’s largest asset man- leave bondholders nursing The risks were highlighted European high-yield bonds re- corporate defaults will remain The average yield on five-
ager is adopting an unusual hefty losses. by a sharp slump in German turned nearly 3%. low as the European Central year U.S. investment-grade
strategy to shield its corpo- Moving into lower-rated government-bond prices last Among the securities Bank keeps its foot on the eas- debt was 3% as of Friday, ac-
rate-bond funds from the vola- debt has its own downside, in- spring. The yield on the 10- Amundi is buying are junior ing pedal. cording to Barclays, down
tility roiling financial markets: cluding a greater risk of de- year bond jumped from close bonds issued by banks, which The approach contrasts slightly from the start of the
buying riskier debt. fault. The strategy highlights to zero in April to 1% about can be made to suffer losses if with Amundi’s actions in the year.
Paris-based Amundi, with the dilemma facing bond in- two months later. By June 10, a bank’s capital levels fall be- U.S., where the firm has been By contrast, the average
€952 billion ($1.04 trillion) in vestors in Europe, where the investors who before the sell- low certain levels, and corpo- selling riskier debt and moving yield on similar eurozone in-
assets under management, is central bank’s money printing off began had been sitting on a rate hybrid securities. Interest into investment-grade bonds, vestment-grade bonds was
concerned that the slender has pushed yields down to return of 4.5% for the year to payments on hybrids typically Ms. Allier said. The U.S. junk- 1.5%, according to Barclays, up
yields on highly rated Euro- rock-bottom levels. date were then facing a loss of can be deferred, and they are bond market has suffered from from 1.4% at the start of the
pean corporate bonds, as well “We are concerned,” said 2.2%, according to Barclays subordinate to traditional debt its large exposure to the en- year. Riskier European debt
as the narrow spread to haven Marie-Anne Allier, head of bond indexes. in the event of a default. ergy sector as oil prices have has also suffered this year, but
government bonds, don’t offer euro aggregate fixed income at Investors in high-grade eu- Those sorts of securities collapsed. The U.S. is also fur- Ms. Allier said the higher yield
investors enough protection Amundi. “When you have very rozone corporate bonds lost tend to have a higher yield for ther along in the credit cycle offers more protection than on
against a market selloff. Even low yield and low spread, you 0.6% last year, compared with a reason: They present a than Europe, a period when investment-grade debt.
BONDS The current selloff in euro-

zone debt comes amid condi-
tions that usually buoy corpo-
rate bonds: a rebound in
prices.
Some investors think the
corporate-bond markets are too
pessimistic on prospects for
Photography by Craig LaCourt
Continued from the prior page economic activity, low corpo- the European economy.
NV, which is rated investment rate default rates and a central Natixis’s Mr. Berthelot said that
grade. bank injecting vast sums of the region’s economy is still set
Even so, U.S. investment- cash into the system. to expand and default rates
grade credit spreads have been The default rate in the Euro- should remain low.
above 1.5 percentage points pean junk-rated bond markets “We have to get used to
since July, according to Bar- was 0.7% in 2015, according to more and more market” de-
clays. Fitch Ratings. That compares clines said Mr. Berthelot, add-
Similar eurozone credit with a recent peak of 10.5% ing that after recent market
spreads breached the 1.5 per- during 2009, following the fi- moves, valuations now look
centage-point level on Friday— nancial crisis. Fitch expects a “appealing.”
up from around 1.3 percentage default rate of less than 1% this The European Commission
points at the start of the year year. projects the euro area’s gross
and around double the level Among U.S. junk-rated com- domestic product will grow
reached early last year. panies, that rate was 3.4% in 1.8% this year. The European
As Europe continues its ten- 2015, a level which is forecast Central Bank has indicated it
tative economic recovery, a to pick up to 4.5% this year. stands ready to pump stimulus
widening of spreads will make That compared with a recent into the system to support the
it more expensive for compa- peak of nearly 14% during bloc’s economy if needed.
nies to raise money, both to in- 2009. James Sym, an equities fund
vest and to pay down old debt. Wolfgang Kuhn, a portfolio manager at Schroders PLC,
Global debt sales are down manager at Aberdeen Asset which oversees £295 billion
19% so far in 2016 compared Management, said he has be- ($419 billion) in assets, said he
with the same period last year, come more cautious recently, doesn’t believe the widening of
the slowest start to a new year even as he remains positive on corporate-bond spreads is a
since 2002, according to data- the prospects for European cor- turning point for markets in
provider Dealogic. porate bonds over the longer the way it was in the 2008 fi-
“People are wondering term. nancial crisis.
whether the outlooks [they “Uncertainty is just very, “I would caution against
have] for the economy on both very high, because you have de- people selling because the mar-
sides of the Atlantic are the velopments that are completely ket is going down. I’d say more
right ones,” said Philippe out of the ordinary,” he said, it’s a buying opportunity,” said
Berthelot, head of credit at referring to the slowdown in Mr. Sym, who has been buying
Natixis Asset Management. China and falls in commodity up European insurance stocks.
Punit Renjen. Deloitte Global CEO and Wall Street Journal reader.
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The ECB stands ready to pump up stimulus if needed for the economy. Above, its headquarters.
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
Last Year ago Last Year ago
15988.08 t 358.37, or 2.19% last week Trailing P/E ratio * 15.15 16.19 1880.33 t 41.70, or 2.17% last week Trailing P/E ratio * 21.04 18.81 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 15.12 15.33 High, low, open and close for each of P/E estimate * 15.65 16.65
the past 52 weeks Dividend yield 2.78 2.51 the past 52 weeks Dividend yield 2.27 1.99 IPOs in the U.S. Market
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15
Initial public offerings of stock expected this week; might include some
offerings, U.S. and foreign, open to institutional investors only via the
Current divisor 0.14602128057775 65-day moving average Rule 144a market; deal amounts are for the U.S. market only
18500 2150
Symbol/ Pricing
200-day moving average Expected primary Shares Range($)
pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)
18000 2100
1/18 11/4 Shimmick Construction Co SCCI 6.3 11.00/ FBR Cptl Mrkts & Co
2015 Construction company Nq 13.00
17500 2050 offering general
construction, construction
management, and design-
build services.
17000 2000
Week's high 1/21 11/9 Elevate Credit ELVT 3.6 20.00/ UBS, Jefferies,
200-day moving average 2015 An online credit solutions N 22.00 Stifel, W. Blair LLC
DOWN UP 16500 1950 provider.
t
Monday's open Friday's close

Lockup Expirations
Friday's close Monday's open
t
16000 1900
Below, companies whose officers and other insiders will become eligible
Week's low 65-day moving average to sell shares in their newly public companies for the first time. Such
15500 1850 sales can move the stock’s price.
Bars measure the point change from Monday's open Lockup Offer Offer amt Through Lockup
expiration Issue date Issuer Symbol price($) ($ mil.) Friday (%) provision
15000 1800
J F M A M J J A S O N D J J F M A M J J A S O N D J Jan. 18 Oct. 20, ’15 Ferrari NV RACE 52.00 982.4 –28.9 90 days
July 22, ’15 Live Oak Bancshares Inc LOB 17.00 93.5 –15.2 180 days
Primary
NYSE weekly volume, in billions of shares market Composite July 22, ’15 Neos Therapeutics Inc NEOS 15.00 82.8 –35.5 180 days
t
t
Financial Flashback Jan. 23 July 27, ’15 NantKwest Inc NK 25.00 238.3 –50.2 180 days
30
20 The Wall Street Journal, January 19, 1987 Sources: Dealogic; WSJ Market Data Group
10 Bally Manufacturing Corp. agreed to buy Golden Nugget
0 Inc.’s Atlantic City, N.J., casino for about $140 million and
IPO Scorecard
J F M A M J J A S O N D J the assumption of a $299 million mortgage. Performance of IPOs, most-recent listed first
% Chg From % Chg From
* P/E data based on as-reported earnings from Birinyi Associates Inc.
Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day
IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Major U.S. Stock-Market Indexes for the Week ending 1/15/16 Nasdaq Composite Yirendai 7.48 –25.2 –17.8 Mimecast 7.72 –22.8 –23.6
YRD Dec. 18/$10.00 MIME Nov. 19/$10.00
Latest Week 52-Week Range % chg t 155.21, or -3.34%
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann. Atlassian 25.19 20.0 –9.3 Square 10.27 14.1 –21.4
Dow Jones
last week TEAM Dec. 10/$21.00 SQ Nov. 19/$9.00
-2.19 l Axsome Thera 13.00 44.4 48.7 Instructure 18.44 15.3 2.4
Industrial Average 16593.51 15842.11 15988.08 -358.37 15666.44 18312.39 -8.7 -8.2 5.7 AXSM Nov. 19/$9.00 INST Nov. 13/$16.00
Transportation Avg 7013.79 6560.11 6689.06 -257.30 -3.70 6689.06 l 9178.48 -23.7 -10.9 5.9
4700 Duluth Hldgs 14.16 18.0 3.7 Mesoblast 5.56 –30.5 –31.4
Utility Average 590.55 574.31 582.79 3.97 0.69 541.97 l 652.11 -9.0 0.9 8.3 DLTH Nov. 19/$12.00 MESO Nov. 13/$8.00
Total Stock Market 20039.34 19039.67 19296.29 -498.32 -2.52 19296.29 l 22287.78 -8.2 -8.6 7.9 Match Grp 12.96 8.0 –12.1 Xtera Comm 3.86 –22.8 –22.8
Barron's 400 484.36 454.91 464.01 -14.66 -3.06 464.01 l 586.75 -12.0 -10.2 6.8 4600 MTCH Nov. 19/$12.00 XCOM Nov. 13/$5.00
Nasdaq Stock Market Sources: WSJ Market Data Group; FactSet Research Systems
4500
Nasdaq Composite 4714.80 4419.41 4488.42 -155.21 -3.34 4488.42 l 5218.86 -3.1 -10.4 13.0 Other Stock Offerings
Nasdaq 100 4359.50 4085.79 4141.08 -129.70 -3.04 4016.32 l 4719.05 -0.0 -9.8 15.0
4400
Secondaries and follow-ons expected this week in the U.S. market
Standard & Poor's 8 11 12 13 14 15 None expected this week
500 Index 1950.33 1857.83 1880.33 -41.70 -2.17 1867.61 l 2130.82 -6.9 -8.0 8.5 January
MidCap 400 1318.12 1246.65 1269.83 -38.65 -2.95 1269.83 l 1549.44 -11.3 -9.2 6.1 DJ US TSM Off the Shelf
SmallCap 600 630.75 594.36 608.63 -14.79 -2.37 607.34 l 742.13 -10.3 -9.4 7.2 t 498.32, or -2.52% “Shelf registrations” allow a company to prepare a stock or bond for
Other Indexes last week sale, without selling the whole issue at once. Corporations sell as
conditions become favorable. Here are the shelf sales, or takedowns,
Russell 2000 1056.92 983.98 1007.72 -38.48 -3.68 1007.72 l 1295.8 -14.4 -11.3 4.4
over the last week:
NYSE Composite 9644.45 9192.07 9299.62 -229.14 -2.40 9299.62 l 11239.66 -12.8 -8.3 2.1
Takedown date/ Deal value Registration
Value Line 416.62 390.66 398.23 -15.27 -3.69 398.23 l 522.42 -18.5 -10.7 1.3 19950 Issuer/Industry Registration date ($ mil.) (mil.) Bookrunner(s)
NYSE Arca Biotech 3449.17 3079.22 3204.52 -232.58 -6.77 3173.57 l 4431.87 -11.5 -16.0 24.4 EPR Properties Jan. 15 $126.6 ... JPM, KeyBanc
NYSE Arca Pharma 517.75 499.35 506.10 -7.28 -1.42 502.66 l 605.94 -8.5 -6.5 9.5 19600 Real Estate/Property June 3,313
KBW Bank 67.58 62.57 63.64 -2.75 -4.14 63.64 l 80.41 -5.5 -12.9 6.1 BioAmber Jan. 15 $13.0 $100.0 HC Wainwright & Co
PHLX§ Gold/Silver 47.54 40.83 41.42 -5.68 -12.07 41.42 l 82.07 -47.9 -8.6 -36.7 Chemicals June 2,314
19250
PHLX§ Oil Service 142.51 132.59 136.33 -5.88 -4.13 135.31 l 224.32 -28.9 -13.6 -16.3 Equity One Jan. 13 $293.3 ... UBS
PHLX§ Semiconductor 613.99 566.30 574.29 -26.19 -4.36 559.59 l 746.08 -13.5 -13.4 12.8 Real Estate/Property April 10,313
CBOE Volatility 30.95 21.44 27.02 0.01 0.04 11.95 l 40.74 29.0 48.4 25.9 18900
8 11 12 13 14 15 Diamondback Energy Jan. 13 $226.0 $874.2 Credit Suisse
Philadelphia Stock Exchange Oil & Gas Nov. 5,313
Sources: SIX Financial Information; WSJ Market Data Group January
Education Realty Trust Jan. 11 $224.5 ... BofA ML, KeyBanc,
Real Estate/Property Nov. 7,314 RBC Cptl Mkts
International Stock Indexes on Monday Commodities and
Monday 52-Week Range YTD
Currencies Public and Private Borrowing
Region/Country Index Close % chg Low Close High % chg
Monday YTD
Treasurys
World The Global Dow 2114.68 –0.71 2114.68 • 2639.52 –9.5 Close Net chg %Chg % chg
DJ Global Index 279.37 –0.52 279.37 • 341.62 –9.3 WSJ Dollar Index 91.51 0.19 0.21 1.48
Tuesday, January 19 Thursday, January 21
DJ Global ex U.S. 188.71 –1.06 188.71 • 246.68 –10.2
Euro, per dollar 0.9180 0.0019 0.21 -0.30 Auction of 13-week & 26-week bills; Auction of 10-year tips;
Global Dow Euro 1830.89 –0.01 1830.89 • 2305.98 –9.6
Yen, per dollar 117.35 0.33 0.28 -2.45
announced on Jan.14; settles on Jan.21 announced on Jan.14, settles on Jan.29
DJ TSM Global 2870.48 –0.53 2870.48 • 3510.20 –9.4
U.K. pound, in dollars 1.42 -0.002 -0.11 -3.35 Wednesday, January 20
Global ex U.S. 1905.55 –1.09 1905.55 • 2482.77 –10.2
YTD Auction of four-week bills;
Developed ex U.S. 1899.01 –1.12 1899.01 • 2403.18 –9.9
Last Week
Close Net chg %Chg % chg announced on Jan.19; settles on Jan.21
Global Small-Cap 3765.08 –0.80 3765.08 • 4716.91 –10.7
DJ Commodity 425.49 -17.83 -4.02 -6.24
Global Large-Cap 2738.60 –0.49 2738.60 • 3337.56 –9.2 Public and Municipal Finance
Reuters-Jefferies CRB 159.93 -8.64 -5.13 -9.27
Americas DJ Americas 445.07 –0.08 445.07 • 524.44 –8.7
Crude oil, $ per barrel 29.42 -3.74 -11.28 -20.57
Deals of $ 150 million or more expected this week
Brazil Sao Paulo Bovespa 37937.27 –1.64 37937.27 • 58051.61 –12.5 Final Total Rating Bookrunner/
Canada S&P/TSX Comp 11942.17 –1.09 11942.17 • 15450.87 –8.2 Natural gas, $/MMBtu 2.100 -0.372 -15.05 -10.14 Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
Mexico IPC All-Share 40604.79 –0.59 40265.37 • 45773.31 –5.5 Gold, $ per troy oz. 1091.50 -6.30 -0.57 2.94
Jan. 18 prelim. Florida 1,750.0 N.R. N.R. N.R. BoA Merrill/—
Chile Santiago IPSA 2774.38 –0.36 2774.38 • 3359.04 –5.8 U.S. Dollar Index 98.95 0.57 0.58 0.26 Development
Europe Stoxx Europe 600 328.64 –0.36 328.64 • 414.06 –10.2 WSJ Dollar Index 91.32 0.67 0.74 1.27 Fin
Stoxx Europe 50 2796.46 –0.18 2796.46 • 3591.47 –9.8 Euro, per dollar 0.9160 0.0008 0.08 -0.51
Eurozone Euro Stoxx 309.95 –0.72 309.95 • 392.35 –10.2
Yen, per dollar 117.02 -0.24 -0.21 -2.72
Jan. 20 Feb. 15, 2044 Harris 265.5 N.R. Aaa AAA Wells Fargo & Co
Euro Stoxx 50 2935.39 –0.58 2935.39 • 3828.78 –10.2
U.K. pound, in dollars 1.43 -0.026 -1.79 -3.24
(Aldine) ISD Bracewell &
Belgium Bel-20 3339.75 –1.31 3265.59 • 3905.71 –9.7 Giuliani LLP
France CAC 40 4189.57 –0.49 4189.57 • 5268.91 –9.7 52-Week Range
Low Close(l) High % Chg Jan. 20 prelim. Washington 529.4 AA+ N.R. N.R. Preliminary/
Germany DAX 9521.85 –0.25 9427.64 • 12374.73 –11.4
Foster Pepper
Israel Tel Aviv 1456.30 0.52 1446.41 • 1723.56 –4.7 DJ Commodity 425.49 l 584.70 -22.60
Italy FTSE MIB 18686.86 –2.65 18687 • 24031 –12.8 Reuters-Jefferies CRB 159.93 l 231.77 -28.68 Jan. 21 prelim. Univ of 183.9 AA Aa2 N.R. Preliminary/
Netherlands AEX 401.99 –0.39 401.99 • 509.24 –9.0 Crude oil, $ per barrel 29.42 l 61.43 -39.58 Houston Sys Norton Rose
Spain IBEX 35 8469.30 –0.87 8469.3 • 11866.4 –11.3
Natural gas, $/MMBtu 1.76 l 3.13 -32.84 Bd of Regents Fulbright
Sweden SX All Share 452.65 –0.16 452.65 • 564.90 –10.4
Gold, $ per troy oz. 1050.80 l 1300.70 -14.52
Switzerland Swiss Market 8099.08 –0.10 7999.48 • 9526.79 –8.2 Jan. 22 prelim. District of 372.3 N.R. N.R. N.R. Loop Capital
U.K. FTSE 100 5779.92 –0.42 5779.92 • 7103.98 –7.4 U.S. Dollar Index 92.52 l 100.20 6.94
Columbia Wtr Markets/—
& Swr Au
Asia-Pacific DJ Asia-Pacific TSM 1255.60 –1.01 1255.60 • 1619.39 –9.7 WSJ Dollar Index 83.86 l 91.32 8.89
Australia S&P/ASX 200 4858.70 –0.70 4858.7 • 5982.7 –8.3
Euro, per dollar 0.86 l 0.95 5.95 Jan. 22 prelim. Indiana 163.4 N.R. N.R. N.R. J P Morgan
China Shanghai Composite 2913.84 0.44 2900.97 • 5166.35 –17.7
Yen, per dollar 117.02 l 125.62 -0.51 Finance Securities
Hong Kong Hang Seng 19237.45 –1.45 19237.45 • 28442.75 –12.2 Authority LLC/—
India S&P BSE Sensex 24188.37 –1.09 24188.37 • 29681.77 –7.4 U.K. pound, in dollars 1.43 l 1.59 -5.89
Japan Nikkei Stock Avg 16955.57 –1.12 16930.84 • 20868.03 –10.9 Real-time U.S. stock Jan. 22 prelim. Massachusetts 235.3 N.R. Aa3 N.R. J P Morgan
•
WSJ
Singapore Straits Times 2593.00 –1.44 2593.00 3539.95 –10.1 quotes are available on Dev Finance Securities
South Korea Kospi 1878.45 –0.02 1829.81 • 2173.41 –4.2 WSJ.com. Agcy LLC/—
Taiwan Weighted 7811.18 0.63 7410.34 • 9973.12 –6.3 .COM Jan. 22 prelim. Triborough 300.0 AA- Aa3 AA- Citi/—
Source: SIX Financial Information;WSJ Market Data Group Bridge &
Tunnel Auth
Consumer Rates and Returns to Investor Benchmark Yields and Rates Jan. 22 prelim. Vermont Ed 170.0 N.R. N.R. N.R. Citi/—
U.S. consumer rates Selected rates Treasury yield curve Forex Race & Hlth Bldgs
Fin Agy
A consumer rate against its New car loan Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs.
Source:Thomson Reuters/Ipreo
benchmark over the past year notes and bonds major U.S. trading partners
Bankrate.com avg†: 3.23%
Corporate Debt
Hickory Point Bank and Trust, FSB 1.99% 5.00% 15%
Prime rate 3.50%
Expected this week
Decatur, IL 800-872-0081 10 WSJ Dollar index
t 4.00
s Expected Years to Deal value Rating
Lake Elmo Bank 1.99% 5 wk ending Issuer/Business maturity ($ mil.) Fitch Moody’s S&P Bookrunner(s)
3.00
t Lake Elmo, MN 651-777-8365 3.00 0 Yen Jan. 22 GCP Applied Technologies $525.0 - - - GS, DB, BofA ML,
s
New car loan Friday Supplier of specialty construction HY Citi
2.50 PNC Bank 1.99% –5
t 2.00 chemicals and building materials.
Lexington, KY 888-762-2265 s Euro
–10 HY- High-yield index Source: Dealogic
2.00 South State Bank 1.99% 1.00
t
One year ago –15

Savannah, GA 912-629-6500
1.50 0.00 –20
FM AM J J A S ON D J Think Mutual Bank
Rochester, MN
1.99%
800-288-3425
1 3 6 1 2 3 5 710 30 2015 Cash Prices | WSJ.com/commodities Monday, Jan. 18, 2016
2015 month(s) years These prices reflect buying and selling of a variety of actual or “physical”
Yield/Rate (%) 52-Week Range (%) 3-yr chg maturity commodities in the marketplace—separate from the futures price on an
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
exchange, which reflects what the commodity might be worth in future
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 months.
Prime rate* 3.50 3.50 3.25 l 3.50 0.25
Corporate Borrowing Rates and Yields Monday Monday
Libor, 3-month 0.62 0.62 0.25 l 0.62 0.32 Spread +/- Treasurys, Tin,NA solder-d 823.287
Yield (%) in basis pts, 52-wk Range Total Return Metals
Money market, annual yield 0.27 0.28 0.25 l 0.42 -0.26 Zinc,NA-d 74.792
Bond total return index Last Wk ago Last Low High 52-wk 3-yr
Gold, per troy oz
Five-year CD, annual yield 1.36 1.40 1.36 l 1.53 0.02 LBMA Gold Price AM *1081.10 Fibers and Textiles
10-yr Treasury, Ryan ALM 2.035 2.131 -0.01 2.23
30-year mortgage, fixed† 3.82 3.89 3.71 l 4.22 0.19 LBMA Gold Price PM *1093.75 Cotlook 'A' Index-t *68.75
DJ Corporate 3.354 3.321 -1.26 2.04 Silver, troy oz.
15-year mortgage, fixed† 3.07 3.14 2.94 l 3.42 0.08
Aggregate, Barclays Capital 2.420 2.490 62 42 62 -0.09 1.82 LBMA spot price £9.7063
Jumbo mortgages, $417,000-plus† 4.44 4.41 4.00 l 4.97 0.33 KEY TO CODES: A=ask; B=bid; BP=country elevator
High Yield 100, Merrill Lynch 8.307 7.713 678 374 678 -7.112 0.127 (U.S.$ equivalent) 13.8800 bids to producers; C=corrected; D=Ryan's Notes;
Five-year adj mortgage (ARM)† 3.34 3.42 3.14 l 4.00 0.26 Other metals E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas
Fixed-Rate MBS, Barclays 2.600 2.670 29 13 44 1.60 2.34 Intelligence; L=livericeindex.com; M=midday;
New-car loan, 48-month 3.23 3.16 2.71 l 3.33 0.47 LBMA Platinum Price PM *839.0
Muni Master, Merrill 1.617 1.625 n.a. -10 7 2.502 2.851 Aluminum, LME, $ per metric ton *1467.5 N=nominal; n.a.=not quoted or not available; R=SNL
HELOC, $30,000 4.98 4.62 4.24 l 4.98 0.37 Energy; S=The Steel Index; T=Cotlook Limited;
EMBI Global, J.P. Morgan 7.062 6.780 508 359 508 -0.295 -0.652 Antimony-d 2.5500 U=USDA; W=weekly, Z=not quoted.
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest Lead,NA solder-d 100.345
banks.† Excludes closing costs. *Data as of 1/15
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 Stainless steel scrap,US-d 1560 Source: WSJ Market Data Group
THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | C5
MONEY & INVESTING
CITIC Securities.
On Dec. 14, Standard &
Poor’s cut Citic Securities’
credit rating on the view its
Citic Securities’ financial re-
sults show it profited handily
during the yearlong stock-mar-
ket rally. With more than $12
Continued from page C1 “business position has been billion in cash on its books in
will be replaced at a meeting significantly undermined” by mid-2015, it was also posi-
of shareholders along with at official investigations. The bro- tioned for an expanded inter-
least an additional four of the ker’s stock lost 43% in 2015, national role. Troubles began
firm’s eight board directors. and an additional 20% in the on Mr. Xi’s 62nd birthday, June
In a sign that central au- first two weeks of the new 15, when stocks started a rapid
thorities in Beijing are tighten- year. descent.
ing their oversight of the firm, Among brokerages, Citic Se- In the first government at-
ROLEX DELA PENA/EUROPEAN PRESSPHOTO AGENCY

Chang Zhenming, chairman of curities has faced the harshest tempts to stem the slide,
its parent company, Citic treatment by Chinese authori- which were widely regarded as
Group, by late last year had ties, including police investiga- clumsily handled, Citic Securi-
replaced Mr. Wang as Commu- tors and securities regulators, ties and other brokers were
nist Party secretary at the bro- but they haven’t explained told to slash lending to stock
kerage. A protégé of Mr. why. Police and Citic Securities investors, then to rev it back
Chang’s is set to become Citic regulatory statements have up. When that failed, the cen-
Securities’ new chairman. cited suspicion that top firm tral government gathered reg-
The turnaround shows the officers engaged in insider ulators, bankers and brokers
speed with which Citic Securi- trading and contract fraud. over the first weekend in July
ties went from being an arm of Citic Securities has since to hatch an all-out market-res-
state policy to a target. That conceded it broke unspecified cue plan.
shift highlights a reformula- rules on margin trading and A core part was the buying
tion of priorities in Beijing— short-selling contracts and Among brokerages, Citic Securities has faced the harshest treatment by Chinese authorities. of shares by an arm of the
how a determination to pro- vowed to review firm ethics. It China Securities Regulatory
mote its financial sector as didn’t respond to questions for Long before Citic Securities billion a year later. more Wall Street giants began Commission. Citic Securities
globally competitive was re- this article and declined to set its sights on Russell and its Under Mr. Wang, Citic Secu- sounding Citic Securities out, was tapped as the primary
placed with a resolve to blunt make executives available for $260 billion in assets under rities charged into new corners including high-frequency trad- broker to execute the trades.
a rout in stocks that had em- interviews. The people named management, it enjoyed un- of finance more aggressively ing specialist KCG Holdings But the strategy was loosely
barrassed authorities. in the probes haven’t made usual autonomy for a state-run than any of its Chinese coun- Ltd. and Steven A. Cohen’s defined, leaving brokers ill at
Chen Zhiwu, a China-born public comments and aren’t business, illustrating the Chi- terparts. Complex instruments Point72 Asset Management LP ease, said a person close to
financial expert at Yale Univer- reachable. nese leadership’s trust in the it spearheaded helped super- hedge-fund firm, according to Citic Securities.
sity, said it appears Citic Secu- Until half a year ago, the firm. Its 64-year-old chairman, charge a stock rally in the first people familiar with the mat- “The people tasked with do-
rities is facing “selective tar- firm appeared crucial to Bei- Mr. Wang, is the son of a Mao- part of 2015 that Chinese state ter. The firms declined to coming that really didn’t have
geting.” Echoing a widespread jing’s economic agenda. It pro- era statesman and a childhood media hailed as a “reform bull ment. good instructions and were at
sentiment in China’s invest- vided a welcome mat as the friend of both Mr. Xi and anti- run”—a resounding cheer for But the innovations—partic- their wits’ end about how to
ment community, he said leadership opened the door to corruption czar Wang Qishan, Mr. Xi’s economic policies. ularly cross-border equity do the business,” the person
China’s leaders appear willing more foreign participation in who himself once headed a It teamed up with interna- swaps that let foreigners make said.
to “sacrifice the largest securi- the country’s markets and brokerage firm. tional hedge funds, including money indirectly in China via As authorities ultimately
ties firm in China to get the marched overseas as China be- The firm set a series of U.S. investor Kenneth Griffin’s Hong Kong—also created ways poured more than $200 billion
greatest value for their scape- came more assertive in global “firsts” for Chinese brokerage Citadel LLC, by giving them ac- to profit from volatility and into stocks, the market hesi-
goating efforts.” finance. firms, including its 2011 inter- cess to Shanghai-traded stock- place bets that the market tantly started to regain its
China’s securities regulator When Shanghai sought to national initial public offering, index futures, according to would fall. That left Citic Secu- footing over the following
and the country’s policing attract global fund managers which raised $1.7 billion in several people familiar with rities vulnerable to criticism weeks.
agency, the Ministry of Public to what it called Hedge Fund Hong Kong, and its takeover of the trading strategies. As vol- when Chinese stocks started —Lingling Wei in Beijing,
Security, didn’t respond to re- Park, Citic Securities and its an international rival, Asia-fo- umes for Chinese stocks and tumbling and Beijing assigned Yifan Xie in Shanghai and
quests for comment on their futures division anchored the cused brokerage CLSA Ltd., futures started to rival U.S. it a key role in the desperate Ken Brown in Hong Kong
investigations related to Citic district’s tallest tower. based in Hong Kong, for $1.25 levels of activity in early 2015, steps to rescue them. contributed to this article.
Closed-End Funds | WSJ.com/funds Prem

52 wk
Ttl Prem
52 wk
Ttl Fund (SYM)
Prem 12 Mo
NAV Close /Disc Yld Fund (SYM)
Prem 12 Mo
NAV Close /Disc Yld
Fund (SYM) NAV Close /Disc Ret Fund (SYM) NAV Close /Disc Ret PIMCO Corporate & Incm PCN NA 12.84 NA 10.2 WesternAssetMunTrFund MTT 22.72 24.30 +7.0 4.1
Listed are the 300 largest closed-end funds as 52 wk
measured by assets. Prem Ttl Nuveen Dow 30 Dynamic DIAX 14.60 12.77 -12.5 -10.4 Gabelli Glbl Multimedia GGT 7.59 6.67 -12.1 -23.5 PIMCO HiInco PHK NA 7.38 NA 16.9 Single State Muni Bond
Closed-end funds sell a limited number of shares and Fund (SYM) NAV Close /Disc Ret NuvDivInco JDD 11.83 9.91 -16.2 -10.2 GDL Fund GDL 11.65 9.75 -16.3 1.9 PIMCO Inco Str Fd PFL NA 9.09 NA 11.0 BlackRock CA Municipal Tr BFZ 16.06 16.06 0.0 5.4
invest the proceeds in securities. Unlike open-end BlkRk MuniHldgs CA Qlty MUC 16.11 14.87 -7.7 5.4
Nuveen Engy MLP Fd JMF 8.64 7.98 -7.6 -52.8 India Fund IFN 23.90 20.76 -13.1 -21.2 PIMCO Incm Strategy Fd II PFN NA 8.21 NA 11.7
funds, closed-ends generally do not buy their shares BlkRk Health Sci BME 32.91 36.73 +11.6 7.8
back from investors who wish to cash in their holdings. NuvNASDAQ100DynOver QQQX 18.16 NA NA NA Japan Sml Cap JOF 11.03 9.38 -15.0 12.7 Putnam Mas Inco PIM 4.81 4.30 -10.6 6.8 Blkrck MunHl NJ Qlty MUJ 16.07 14.49 -9.8 6.2
BlkRk Intl Grwth&Inco BGY 6.30 5.57 -11.6 -9.95 BlRk MuHldg NY Qlty MHN 15.23 14.43 -5.3 5.6
Instead, fund shares trade on a stock exchange. Nuveen Real Estate Fd JRS 11.22 9.80 -12.7 -11.6 Mexico Fund MXF 15.02 NA -21.0 Putnam Premier Income Tr PPT 5.28 4.65 -11.9 6.3
a-The NAV and market price are ex dividend. b-The BlackRck Rscs Comm Str Tr BCX 7.34 6.01 -18.1 -30.5 BlkRk MuniYld CA Fd MYC 16.58 15.95 -3.8 5.5
NuveenS&P500Buy-Write BXMX 12.56 11.93 -5.0 1.2 MS China a Shr Fd CAF 19.87 16.03 -19.3 -15.2 Wells Fargo Multi-Sector ERC 12.72 10.85 -14.7 10.2
NAV is fully diluted. c-NAV is as of Thursday’s close. d- BlackRock Science & Tech BST 17.75 15.45 -13.0 -6.6 BlkRk MuniYld CA Quality MCA 16.39 15.70 -4.2 5.6
NAV is as of Wednesday’s close. e-NAV assumes rights Reaves Utility Fund UTG 24.70 NA -19.5 MS India Invest IIF 26.89 23.03 -14.4 -17.0 World Income Funds
BlackRock Utility & Infr BUI 18.40 15.95 -13.3 -15.0 BlkRk MuniYld MI Qlty MIY 15.87 14.04 -11.5 6.1
offering is fully subscribed. f-Rights offering in process. Tekla Hlthcr Investors HQH 26.59 24.40 -8.2 -18.6 New Germany Fund GF 14.53 12.83 -11.7 -1.5 Abeerden Asia-Pacific FAX 5.37 4.38 -18.4 6.4
g-Rights offering announced. h-Lipper data has been CBREClarionGlblRlEstIncm IGR 8.42 6.91 -17.9 -21.2 BlRk Muyld NY Qlty MYN 14.60 13.57 -7.1 5.6
Tekla Healthcare Opps Fd THQ 17.53 15.28 -12.8 -17.0 Swiss Helvetia Fund SWZ 11.29 9.67 -14.3 -9.1 Etn Vnc Short Dur Fd EVG 14.90 12.89 -13.5 8.0
adjusted for rights offering. j-Rights offering has Central Fund Of Canada CEF 11.46 10.21 -10.9 -20.9 Eaton Vance CA Mun Bd EVM 13.05 12.24 -6.2 5.6
expired, but Lipper data not yet adjusted. l-NAV as of Tekla Life Sciences HQL 20.35 19.07 -6.3 -20.4 Templeton Dragon TDF 18.06 15.55 -13.9 -13.4 Legg Mason BW Glbl Incm BWG 13.12 10.72 -18.3 16.4
Central GoldTrust GTU 39.76 39.42 -0.9 -11.7 Invesco CA Value Mun Incm VCV 13.95 13.27 -4.9 5.9
previous day. o-Tender offer in process. v-NAV is Tekla World Hlthcr Fd THW 16.47 13.74 -16.6 NS Voya Infr Indls & Matls IDE 13.23 11.00 -16.9 -19.9 MS EmMktDomDebt EDD 7.84 6.44 -17.9 12.6
converted at the commercial Rand rate. w-Convertible ClearBridge Amer Engy CBA 6.32 5.92 -6.3 -59.3 Invesco PA Value Mun Incm VPV 14.56 13.03 -10.5 6.0
Note-NAV (not market) conversion value. y-NAV and Tortoise Energy TYG 23.04 22.27 -3.3 -44.3 Wells Fargo Gl Div Opp EOD 6.40 5.36 -16.3 -20.4 PIMCO Dynamic Credit Incm PCI NA 17.00 NA 11.8
ClearBridge Engy MLP Fd CEM 12.71 11.50 -9.5 -51.1 Invesco Inv Grade NY Muni VTN 15.30 15.05 -1.6 5.6
market price are in Canadian dollars. NA signifies that Tortoise MLP Fund NTG 15.27 13.61 -10.9 -43.6 PIMCODynamicIncomeFund PDI NA 25.52 NA 14.5
the information is not available or not applicable. NS Clearbridge Engy MLP Opp EMO 10.07 9.20 -8.6 -53.7 Prem12 Mo Nuveen California AMT NKX 16.21 15.46 -4.6 5.6
Voya Gl Equity Div IGD 7.43 6.31 -15.1 -13.3 Fund (SYM) NAV Close /Disc Yld PIMCO Income Opportunity PKO NA 19.62 NA 10.5
signifies fund not in existence of entire period. Clearbridge Engy MLP TR CTR 9.43 8.78 -6.9 -53.0 Nuveen CA Div Fnd NAC 16.11 15.60 -3.2 6.0
12 month yield is computed by dividing income Income Preferred Stock Funds PIMCO Strat Income Fund RCS NA 8.59 NA 11.1
Cohen & Steers Infra UTF 20.62 16.94 -17.8 -19.0 U.S. Mortgage Bond Funds NuveenCA 3 NZH 14.95 14.12 -5.6 5.7
dividends paid (during the previous twelve months for Calamos Strat Fd CSQ 10.09 8.63 -14.5 -15.4 Templeton Emerging TEI 11.05 9.21 -16.7 8.0
periods ending at month-end or during the previous C&S MLP Incm & Engy Opp MIE 7.64 7.32 -4.2 -57.3 BlackRock Income Trust BKT 7.00 6.44 -8.0 5.8 Nuveen CA Muni Value NCA 10.60 10.89 +2.7 4.3
Cohen & Steers Dur Pfd LDP 24.91 22.21 -10.8 1.4 Templeton Global GIM 6.95 6.09 -12.4 4.7
fifty-two weeks for periods ending at any time other Cohen & Steers Qual Inc RQI 12.73 10.91 -14.3 -7.0 Brkfld Mortgage Opp Incm BOI 16.90 14.28 -15.5 10.3 NuveenMDPremiumIncome NMY 14.92 12.77 -14.4 5.2
than month-end) by the latest month-end market price Cohen & Strs Sel Prf Inco PSF 26.51 24.64 -7.1 1.9 Wstrn Asset Emerg Mkts ESD 15.89 12.96 -18.4 9.5
CohnStrsPfdInco RNP 20.86 17.14 -17.8 -5.8 Brookfield TR Fund HTR 24.74 20.92 -15.4 10.3 Nuveen MI Quality Income NUM 15.95 13.63 -14.5 5.7
adjusted for capital gains distributions. FT Interm Duration Pfd FPF 23.07 21.29 -7.7 5.3 Wstrn Asset Emerg Mkt II EMD 11.33 9.09 -19.8 8.8
Source: Lipper Cohen & Steers TR RFI 13.00 11.56 -11.1 -8.0 Nuveen Mtg Oppy Term Fd JLS 24.89 22.43 -9.9 6.6 Nuveen NJ Div NXJ 15.90 13.60 -14.5 5.5
Flaherty & Crumrine Dyn DFP 23.77 22.81 -4.0 6.4 Wstrn Asset Gl Def Opp Fd GDO 17.56 15.53 -11.6 8.6
Friday, January 15, 2016 CLSeligmn Prem Tech Gr Fd STK 15.23 15.29 +0.4 -5.9 Investment Grade Bond Funds NuvAMTFreeMuniIncm NRK 14.69 12.93 -12.0 5.4
Flaherty & Crumrine Pfd FFC 18.63 19.58 +5.1 3.0 National Muni Bond Funds
52 wk Divers Real Asset Incm Fd DRA 17.14 13.98 -18.4 -12.6 AllianceBrnstn IncoFd ACG 7.85 7.69 -2.0 6.0 Nuveen NY Div Fnd NAN 15.55 14.07 -9.5 5.5
John Hancock Pfd Income HPI 21.45 19.87 -7.4 4.7 AllianceBrnstn NtlMun AFB 15.37 13.90 -9.6 5.8
Prem Ttl Duff & Phelps DNP 7.85 8.95 +14.1 -7.1 Blackrock Core Bond Tr BHK 13.94 12.65 -9.3 7.0 Nuveen Ohio Qual Income NUO 17.19 15.28 -11.1 5.5
John Hancock Pfd II HPF 21.19 19.26 -9.1 0.8 Blackrock Invest BKN 16.49 15.53 -5.8 5.9
Fund (SYM) NAV Close /Disc Ret Duff&PhelpsGblUtilIncFd DPG 15.23 12.74 -16.3 -32.7 BlkRk Credit Alloc Incm BTZ 13.61 11.92 -12.4 7.8 Nuveen Pa Investment Qual NQP 15.89 14.00 -11.9 6.0
John Hancock Pfd Inc III HPS 18.77 17.44 -7.1 4.0 BlackRock Municipal Trust BFK 15.04 14.69 -2.3 6.1
Eaton Vance Eqty Inco Fd EOI 12.90 11.84 -8.2 -4.9 John Hancock Income Secs JHS 14.59 13.38 -8.3 6.5 NuveenVAPremiumIncome NPV 14.76 13.91 -5.8 5.2
General Equity Funds JHancock Pr Div PDT 14.79 13.02 -12.0 0.4 BlackRockMuni BLE 15.67 15.22 -2.9 6.1
Eaton Vance Eqty Inco II EOS 13.00 12.05 -7.3 -3.4 MFS Inc Tr MIN 4.97 4.49 -9.7 10.0 PIMCO California Muni PCQ 14.73 15.98 +8.5 5.8
Adams Divers Equity Fd ADX 13.79 11.69 -15.2 -6.9 LMP Cap & Inco Fd SCD 13.07 10.99 -15.9 -28.4 BlackRockMuni Tr BYM 15.72 14.74 -6.2 5.7
EtnVncRskMngd ETJ 10.60 9.32 -12.1 -4.4 WstAstClymr InfLnkd Fd WIW 12.09 10.19 -15.7 3.5 PIMCO California Mun II PCK 9.04 10.15 +12.3 6.4
Boulder Grwth & Inco BIF 9.05 6.96 -23.1 -18.7 Nuveen Preferred & Incm JPI 23.99 23.19 -3.3 11.2 Blackrock Mun Target Term BTT 24.14 21.92 -9.2 4.4
Central Securities CET 21.73 17.06 -21.5 -10.6 Etn Vnc Tax Mgd Buy-Write ETB 14.39 15.09 +4.9 2.1 Nuveen Preferred Inc Opp JPC 10.02 9.17 -8.5 4.9 WstAssetClymr InflLnk Sec WIA 12.42 10.44 -15.9 3.3 BlkRk MuniAssets Fd MUA 14.27 14.60 +2.3 5.2
CohSteer Opprtnty Fd FOF 11.38 10.05 -11.7 -16.8 Eaton Vance BuyWrite Opp ETV 13.44 13.89 +3.3 7.2 Nuveen Quality pf JTP 8.91 8.05 -9.7 3.4 Loan Participation Funds BlkRk Munienhanced MEN 12.42 12.13 -2.3 6.1
52 wk
Eaton Vance Tax-Mng Div ETY 10.96 9.88 -9.9 -2.9 Apollo Sr Fltg Rate Fd AFT 16.73 14.38 -14.0 7.7 Prem Ttl
Cornerstone Strategic CLM 13.44 13.98 +4.0 -10.1 Nuveen Fd2 JPS 9.49 8.87 -6.5 3.8 BlkRk MuniHldgs Inv MFL 15.57 14.59 -6.3 5.9 Fund (SYM) NAV Close /Disc Ret
EtnVnc TaxAdvDiv EVT 19.78 17.59 -11.1 -7.5 EatonVanceTax-MngdOpp ETW 10.67 9.84 -7.8 -3.8 TCW Strategic Income Fund TSI 5.27 NA 0.7 BlackRock FR Incm Strat FRA 14.20 12.35 -13.0 6.1 BlkRk MuniHldgs Qlty II MUE 14.78 13.63 -7.8 6.0
Gabelli Dividend & Incm GDV 18.76 16.00 -14.7 -17.6 EtnVncTxMngGlDvEqInc EXG 8.93 7.91 -11.4 -6.0 Zweig Total Return ZTR 12.67 11.30 -10.8 -10.1 Blkrk FltRt InTr BGT 13.71 11.87 -13.4 6.0 BlkRk MuniVest MVF 10.21 10.26 +0.5 6.2
General Equity Funds
Gabelli Equity GAB 5.14 4.68 -8.9 -17.9 Fiduciary/Clymr Opp Fd FMO 11.39 10.49 -7.9 -53.0 BlackstoneGSO Strat Cred BGB 14.72 12.74 -13.5 9.4 Alternative Strategies:C NA NA NA N
Convertible Sec's. Funds BlkRk MuniVest II MVT 16.09 16.44 +2.2 6.0
Genl American Investors GAM 34.01 28.13 -17.3 -14.4 FT Energy Inc & Growth Fd FEN 20.84 19.43 -6.8 -39.7 AdvntClymrFd AVK 14.76 11.99 -18.8 -20.7 Blackstone GSO Sr Float BSL NA 13.92 NA 7.2 Little Harbor MS Comp NA NA NA N
BlkRk MuniYield MYD 15.45 14.98 -3.0 6.2
HnckJohn TxAdv HTD 22.57 19.50 -13.6 -7.9 FstTrEnhEqtIncFd FFA 13.74 11.78 -14.3 -11.0 AllianzGI Conv & Incm NCV 5.71 4.91 Eaton Vance FR Incm Tr EFT 13.84 11.98 -13.4 7.1 Specialized Equity Funds
-14.0 -36.5 BlkRk MuniYld Quality MQY 16.34 15.88 -2.8 6.0
Liberty All-Star Equity USA 5.57 4.70 -15.6 -10.9 First Tr Engy Infr Fd FIF 14.53 12.06 -17.0 -41.4 EatonVnc SrFltRate EFR 13.44 11.80 -12.2 7.5 Corsair Opportunity:I 8.76 NA NA -11.9
AllianzGI Conv & Incm II NCZ 5.07 4.35 -14.2 -39.4 BlkRk MuniYld Qlty II MQT 14.32 13.51 -5.7 6.2
First Tr MLP & Engy Incm FEI 11.96 10.36 -13.4 -44.3 1st Tr Sr Fltg Rt Fd II FCT NA 11.80 NA 7.1 Griffin Inst Access RE:A 26.17 NA NA 6.5
Royce Micro-Cap RMT 7.56 6.38 -15.6 -21.5 AllianzGI Equity & Conv NIE 19.38 16.38 -15.5 -12.4 BlRkMunyldQltyIII MYI 15.10 14.78 -2.1 6.0
Gabelli Hlthcr & Well GRX 10.86 9.25 -14.8 -7.2 Griffin Inst Access RE:C 26.10 NA NA NS
Royce Value Trust RVT 12.11 10.04 -17.1 -20.7 Calamos Conv Hi Inco Fd CHY 10.69 9.29 -13.1 -26.2 Invesco Credit Opps Fund VTA 11.83 10.18 -13.9 8.5 Deutsche Mun Income Tr KTF 13.54 13.66 +0.9 6.2
Gabelli Utility Tr GUT 4.92 NA NA NA Griffin Inst Access RE:I 26.20 NA NA NS
Source Capital SOR 70.80 63.97 -9.6 1.0 Calamos CHI 10.09 8.82 -12.6 -24.5 Invesco Senior Income Tr VVR 4.40 3.81 -13.4 7.9 Dreyfus Mun Bd Infr Fd DMB 14.14 12.66 -10.5 6.0
GAMCOGlblGoldNatRscs&Inc GGN 4.83 4.10 -15.1 -36.4 Resource RE Div Inc:D NA NA NA NS
Tri-Continental TY 21.78 18.35 -15.7 -9.2 World Equity Funds Nuveen Credit Strt Inc Fd JQC 8.81 7.43 -15.7 7.5 Dreyfus Strat Muni Bond DSM 8.70 8.28 -4.8 6.1
GoldmanSachsMLPIncOpp GMZ 6.80 6.19 -9.0 -60.6 Resource RE Div Inc:T NA NA NA NS
Zweig Fund ZF 13.25 11.72 -11.5 -15.5 Alpine Tot Dyn Div AOD 8.39 6.87 -18.1 -13.1 NuvFloatRteInco Fd JFR 10.74 9.69 -9.8 7.0 Dreyfus Strategic Munis LEO 8.94 8.70 -2.7 6.0 Resource RE Div Inc:U NA NA NA NS
Specialized Equity Funds Goldman Sachs MLPEnergy GER 4.42 4.19 -5.2 -67.9 Calamos Glbl Dyn Inc CHW 7.56 6.37 -15.7 -18.2 Nuv Float Rte Opp Fd JRO 10.69 9.20 -13.9 7.7 Eaton Vance Mun Bd Fd EIM 14.30 13.09 -8.5 5.9 SharesPost 100 25.19 NA NA 0.0
Adams Natural Rscs Fd PEO 18.75 15.68 -16.4 -28.0 John Hancock Finl Opps Fd BTO 23.33 21.94 -6.0 6.4 Cdn Genl Inv CGI 21.91 16.70 -23.8 -8.5 Nuveen Senior Income Fund NSL 6.40 5.45 -14.8 7.2 Eaton Vance Mun Income EVN 13.41 13.80 +2.9 6.4 Versus Cap MMgr RE Inc:F 26.53 NA NA 6.1
AllnzGI NFJ Div Interest NFJ 13.34 11.05 -17.2 -22.9 KayneAndersonEngyTRFd KYE 6.30 NA -72.8 China Fund CHN 15.30 13.13 -14.2 -24.5 Pioneer Floating Rate Tr PHD 12.00 10.35 -13.8 6.5 EV National Municipal Opp EOT 22.96 21.54 -6.2 4.8 Versus Cap MMgr RE Inc:I 26.58 NA NA 6.5
AlpnGlblPrProp AWP 6.19 5.15 -16.8 -16.3 Kayne Anderson MLP Invt KYN 12.71 NA -59.8 Clough Glbl Eqty Fd GLQ 13.16 10.79 -18.0 -15.7 Voya Prime Rate Trust PPR 5.47 4.82 -11.9 6.6 Invesco Adv Mun Incm II VKI 12.72 11.90 -6.4 6.6 Income Preferred Stock Funds
BlkRk Enh Cap Inco CII 13.73 12.52 -8.8 -3.5 Kayne Andrsn Midstr Engy KMF 8.94 NA -66.8 Clough Global Opp Fd GLO 11.46 NA NA NA High Yield Bond Funds Invesco Mun Incm Opps Tr OIA 7.66 7.34 -4.2 5.4 CLA Strategic Alloc XSAFX NA NA NA NS
BlkRk Engy Res Tr BGR 12.45 10.99 -11.7 -41.5 Macquarie Glbl Infrstrctr MGU 20.38 16.85 -17.3 -27.9 EtnVncTxAdvGblDiv ETG 15.42 13.58 -11.9 -8.2 AllianceBernstein Glbl AWF 12.00 10.50 -12.5 10.2 Invesco Mun Opportunity VMO 14.21 13.23 -6.9 6.3 MultiStrat Gro & Inc:A 15.30 NA NA -4.3
BlackRock Enh Eq Div Tr BDJ 8.03 6.86 -14.6 -7.9 NeubergerBermanMLPIncm NML 5.95 5.89 -1.0 -63.8 EatonVance TxAdv Opport ETO 20.81 19.18 -7.8 -10.9 Babson Gl Sh Dur Hi Yd BGH 17.83 15.60 -12.5 12.0 Invesco Municipal Trust VKQ 14.14 13.02 -7.9 6.3 MultiStrat Gro & Inc:C 15.17 NA NA -5.0
Blackrock Global Trust BOE 12.87 11.22 -12.8 -6.8 Neubrgr Brm Rl Est Sec Fd NRO 5.25 4.50 -14.3 -11.9 First Trust Dynamic Eur FDEU 17.42 15.50 -11.0 NS BlackRock Corp Hi Yd Fd HYT 10.51 9.47 -9.9 10.1 Invesco Qlty Mun Inco IQI 14.07 12.73 -9.5 6.0 MultiStrat Gro & Inc:I 15.34 NA NA -4.0
BlkRk Debt Strat Fd DSU 3.78 3.20 -15.3 8.0 Invesco Inv Grade Muni VGM 14.65 13.46 -8.1 6.6 MultiStrat Gro & Inc:L 15.21 NA NA -4.8
BlackRockDurInco Tr BLW 15.94 13.85 -13.1 8.2 Invesco Value Mun Incm Tr IIM 16.75 16.52 -1.4 5.2 Convertible Sec's. Funds
Borrowing Benchmarks | WSJ.com/bonds Credit Suisse High Yld DHY 2.30 2.08 -9.6 12.6
DoubleLine Incm Solutions DSL NA 15.64 NA 11.6
MainStay DefinedTerm MMD 19.79 18.90 -4.5 6.2
MFS Munl Inco MFM 7.49 6.79 -9.3 5.7
Calmos Dyn Conv and Inc CCD 18.77 16.15 -14.0 NS
World Equity Funds
Dreyfus Hi Yld Fd DHF 3.07 2.88 -6.2 11.3 NuvAMTFreeMuniIncm NEA 15.25 13.87 -9.0 5.6 BMO LGM Front ME 7.53 NA NA -14.7
Fst Tr Hi Inc Lg/Shrt Fd FSD 15.94 13.28 -16.7 8.8 NuvDivAdvMuniIncm NVG 16.48 14.61 -11.3 5.1 Prem12 Mo
Money Rates January 18, 2016 Guggenheim Strat Opps Fd GOF 17.08 15.45 -9.5 12.9
Ivy High Income Opps Fund IVH 13.49 11.30 -16.2 12.9
Nuveen Div Fnd NAD 15.85 14.53 -8.3 5.9 Fund (SYM) NAV Close /Disc Yld
Nuveen Div Fnd 2 NXZ 16.18 14.25 -11.9 5.7 U.S. Mortgage Bond Funds
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a NexPoint Credit Strat Fd NHF 21.80 NA NA 32.2 Nuveen Div Adv NZF 16.20 14.38 -11.2 5.4 Vertical Capital Income NA NA NA 3.5
Nuveen Gl Hi Incm Fd JGH 15.32 12.65 -17.4 11.4 Nuveen Enhncd Mun Val Fd NEV 15.70 15.83 +0.8 6.1 Loan Participation Funds
guide to general levels but don’t always represent actual transactions. Nuveen High Incm Dec18 JHA 9.45 9.97 +5.5 NS Nuveen Intermed Dur Mun NID 13.88 12.93 -6.8 5.3 504 Fund 10.05 NA NA 3.0
Week —52-WEEK— Pioneer High Income Trust PHT 9.09 8.90 -2.1 14.5 Nuveen Invest Qual Muni NQM 16.34 15.66 -4.2 6.2 Invesco Sr Loan A 5.97 NA NA 6.1
International rates International rates Latest ago High Low Prud Gl Shrt Dur Hi Yd GHY 15.80 13.76 -12.9 10.0 NuveenMuniAdvantageFd NMA 15.69 13.92 -11.3 5.7 Invesco Sr Loan B 5.97 NA NA 6.1
Prudentl Sh Dur Hi Yd Fd ISD 16.11 14.48 -10.1 9.6 NuveenMuniIncoOpp Fd NMZ 13.71 13.85 +1.0 6.5 Invesco Sr Loan C 5.98 NA NA 5.3
Week 52-Week Week 52-Week Commercial paper
Latest High Low Latest High Low Wells Fargo Incm Opps Fd EAD 7.94 6.93 -12.7 10.9 Nuveen Muni Mkt Opp NMO 15.61 13.84 -11.3 5.6 Invesco Sr Loan IB 5.97 NA NA 6.4
ago ago
30 to 270 days n.q. ... ... ... Wstrn Asset Glbl Hi Inco EHI 9.79 8.15 -16.8 13.2 Nuveen Mun Opportunity Fd NIO 15.93 14.43 -9.4 6.1 Invesco Sr Loan IC 5.97 NA NA 6.2
Wstrn Asset High Inco II HIX 6.61 5.98 -9.5 13.1 Nuveen Muni Value Fund NUV 10.36 10.09 -2.6 3.9 Invesco Sr Loan Y 5.97 NA NA 6.4
Prime rates Prime rates Commercial paper (AA financial) Voya Senior Income:A 12.14 NA NA 5.6
Wstrn Asset Opp Fd HIO 5.01 4.38 -12.6 9.0 Nuveen Performance Plus NPP 16.53 15.08 -8.8 5.9
U.S. 3.50 3.50 3.50 3.25 U.S. 3.50 3.50 3.50 3.25 90 days 0.57 0.57 0.64 0.06 West Asst HY Def Opp Fd HYI 14.91 13.26 -11.1 9.3 Nuveen Premium Inco Muni NPI 15.75 14.14 -10.2 5.8 Voya Senior Income:B 12.09 NA NA 5.1
Canada 2.70 2.70 3.00 2.70 Canada 2.70 2.70 3.00 2.70 Other Domestic Taxable Bond Funds Nuveen Prem Inco Muni 2 NPM 15.79 14.41 -8.7 5.9 Voya Senior Income:C 12.11 NA NA 5.1
Japan 1.475 1.475 1.475 1.475 Japan 1.475 1.475 1.475 1.475 Euro commercial paper Ares Dynamic Credit Alloc ARDC NA 12.75 NA 10.5 Nuveen Prem Inco Muni 4 NPT 14.66 13.57 -7.4 6.1 Voya Senior Income:I 12.10 NA NA 5.9
Babson Cap Corp Inv MCI NA 17.16 NA 6.9 Voya Senior Income:W 12.14 NA NA 5.9
Policy Rates Policy Rates 30 day n.q. n.q. -0.02 -0.12 Nuveen Premier Muni Inc NPF 15.46 13.78 -10.9 6.0
BlackRock Multi-Sector IT BIT 17.93 15.32 -14.6 9.4 High Yield Bond Funds
Two month n.q. n.q. -0.01 -0.09 Nuveen Quality Income NQU 16.09 14.27 -11.3 5.8
Euro zone 0.05 0.05 0.05 0.05 Euro zone 0.05 0.05 0.05 0.05 WA Middle Mkt Inc WMF660.38 NA NA 13.1
Three month n.q. n.q. 0.01 -0.08 BlackRock Taxable Mun Bd BBN 22.84 22.15 -3.0 7.5 Nuveen Quality Muni Fund NQI 15.48 13.65 -11.8 4.9
Switzerland 0.50 0.50 0.50 0.50 Switzerland 0.50 0.50 0.50 0.50 Other Domestic Taxable Bond Funds
Four month n.q. n.q. 0.02 0.00 Doubleline Oppor Credit DBL NA 25.21 NA 10.0 Nuveen Select Quality NQS 15.96 14.06 -11.9 5.5 Capstone Church Capital 16.97 NA NA 1.7
Britain 0.50 0.50 0.50 0.50 Britain 0.50 0.50 0.50 0.50 Duff & Phelps Utl & Cp Bd DUC 10.08 9.16 -9.1 6.5 Nuveen Sel TF NXQ 14.79 13.76 -7.0 3.9
Five month n.q. n.q. 0.03 0.01 GL Beyond Income 4.91 NA NA NE
Australia 2.00 2.00 2.50 2.00 Australia 2.00 2.00 2.50 2.00 EtnVncLtdFd EVV NA 12.18 NA 9.5 PIMCO MuniFd PMF 13.38 15.50 +15.8 6.3
Six month n.q. n.q. 0.04 0.02 Palmer Square Opp Income NA NA NA 5.4
Franklin Ltd Duration IT FTF NA 10.53 NA 6.9 Pimco Muni Inc II PML 12.51 12.73 +1.8 6.2 Resource Credit Inc:A NA NA NA NS
Overnight repurchase Overnight repurchase GuggenhBondMnegDurTr GBAB 22.78 22.32 -2.0 8.2 PIMCO Muni Inc III PMX 11.27 11.70 +3.8 6.4
Libor Resource Credit Inc:C NA NA NA NS
U.S. 0.44 0.45 0.48 0.07 U.S. 0.44 0.47 0.48 0.07 One month 0.42550 0.42350 0.42950 0.16675 KKR Income Opps Fund KIO 15.27 13.00 -14.9 10.8 Pioneer Mun Hi Inc Adv Tr MAV 12.50 13.36 +6.9 7.6 Resource Credit Inc:D NA NA NA NS
Three month 0.61960 0.61685 0.62360 0.25210 MFS Charter MCR 8.78 7.56 -13.9 9.2 Pioneer Mun Hi Incm Tr MHI 13.41 13.02 -2.9 6.8 Resource Credit Inc:I NA NA NA NS
Euro commercial paper U.S. government rates MFS Multimkt MMT 6.33 5.42 -14.4 9.0 Putnam Tr PMM 8.10 7.40 -8.6 5.9 Resource Credit Inc:T NA NA NA NS
Six month 0.84905 0.84480 0.85970 0.35390
30 day n.q. n.q. -0.02 -0.12 Discount Nuveen Build Am Bd Fd NBB 21.51 20.61 -4.2 6.7 PutnamMuniOpportunities PMO 13.61 12.52 -8.0 5.8 Resource Credit Inc:U NA NA NA NS
One year 1.14510 1.14710 1.17800 0.60990
Two month n.q. n.q. -0.01 -0.09 PIMCO Corporate & Incm PTY NA 12.51 NA 11.9 Wstrn Asset Mngd Muni MMU 14.54 14.65 +0.8 5.5 Resource Credit Inc:W NA NA NA NS
1.00 1.00 1.00 0.75 Euro Libor
Three month n.q. n.q. 0.01 -0.08
Four month n.q. n.q. 0.02 0.00 Federal funds One month -0.224 -0.214 -0.003 -0.224
Five month
Six month
n.q.
n.q.
n.q. 0.03 0.01
n.q. 0.04 0.02
Effective rate 0.3800 0.3800 0.3800 0.0600 Three month
Six month
-0.147
-0.065
-0.139
-0.051
0.034
0.106
-0.147
-0.065
Bonds | WSJ.com/bonds
High 0.5625 0.5600 0.5900 0.2500
0.3400 0.2500 0.3400 0.0100 One year 0.046 0.047 0.250 0.031
Libor Low
Bid 0.3000 0.3500 0.5500 0.0000 Euro interbank offered rate (Euribor)
Global Government Bonds: Mapping Yields
One month 0.42600 0.42380 0.42950 0.16675
Three month 0.62380 0.62110 0.62380 0.25210
Offer 0.3500 0.5000 0.5600 0.0500 One month -0.221 -0.218 0.005 -0.221
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Six month 0.85325 0.85080 0.85970 0.35390 Three month -0.142 -0.143 0.060 -0.144 selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Treasury bill auction
One year 1.14630 1.15510 1.17800 0.61190 Six month -0.054 -0.051 0.152 -0.054 Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
4 weeks 0.220 0.200 0.235 0.000 Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
One year 0.049 0.051 0.299 0.039
Euro Libor 13 weeks 0.215 0.215 0.280 0.000 1.000 U.S. 2 0.854 l 0.854 0.948 0.492
26 weeks 0.470 0.500 0.585 0.065 Value 52-Week
One month -0.224 -0.214 -0.003 -0.224
Latest Traded High Low
2.250 10 2.038 l 2.038 2.210 1.840
Three month -0.149 -0.139 0.034 -0.149 5.500 Australia 2 1.936 t 1.963 2.006 2.135 110.9 164.3
Six month -0.064 -0.053 0.100 -0.065
Secondary market DTCC GCF Repo Index
l 108.2
0.046 0.048 0.247 0.031 Fannie Mae 3.250 10 2.646 t l 2.652 2.768 2.571 60.8 61.4 73.1
One year Treasury 0.444 131.408 0.639 0.059
30-year mortgage yields MBS 0.460 86.070 0.705 0.075 4.250 France 2 -0.328 s l -0.331 -0.302 -0.097 -118.2 -118.5 -58.9
Euro interbank offered rate (Euribor) 1.000 10 0.874 s l 0.873 0.891 0.636 -116.5 -120.4
30 days 3.337 3.467 3.750 3.024 Open Implied -116.4
One month -0.222 -0.219 0.005 -0.222 60 days 3.371 3.497 3.788 3.080 Settle Change Interest Rate
Three month -0.142 -0.143 0.056 -0.144 0.500 Germany 2 -0.387 t l -0.381 -0.349 -0.154 -124.1 -123.5 -64.6
Six month -0.054 -0.052 0.145 -0.054 DTCC GCF Repo Index Futures 1.000 10 0.473 t l 0.477 0.550 0.410 -156.5 -156.1 -143.0
Other short-term rates
One year 0.049 0.050 0.289 0.039 Treasury Jan 99.540 unch. 7810 0.460 4.500 Italy 2 0.035 s l 0.020 0.123 0.410 -81.9 -83.4 -8.2
Call money Treasury Feb 99.560 unch. 5719 0.440
2.25 2.25 2.25 2.00 Treasury Mar 99.495 0.010 4187 0.505 2.000 10 1.569 s l 1.562 1.566 1.663 -46.9 -47.6 -17.6
January 15, 2016 0.100 Japan 2 -0.025 s l -0.028 -0.046 -0.023 -87.9 -88.2 -51.5
Notes on data: 0.300 10 0.204 t l 0.218 0.270 0.241 -183.4 -182.0 -159.9
Inflation U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S.
Nov. index Chg From (%) prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; 0.500 Spain 2 0.028 s l 0.025 0.086 0.404 -82.7 -82.9 -8.8
Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF 2.150 10 1.743 s l 1.730 1.687 1.517 -30.8 -32.3
level Oct. '15 Nov. '14
Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable
-29.5
CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on 1.000 U.K. 2 0.466 s l 0.442 0.591 0.394 -38.8 -41.2 -9.7
U.S. consumer price index NYSE Liffe US.
All items 237.336 –0.21 0.5 2.000 10 1.697 s l 1.666 1.835 1.538 -34.1 -37.2 -30.2
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Core 244.075 0.04 2.0 General Electric Capital Corp.; Tullett Prebon Information, Ltd. Source: Tullett Prebon
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
OVERHEARD Poultry in Motion

Premium of Georgia Dock chicken price to Urner Barry Grade A
Worldpay’s Stock
Stock prices of many re-
tailers in the U.S. have de-
clined since they reported
40 cents per pound
35
30
Looks Expensive
third-quarter earnings, but
25
one thing remains elevated If you want to buy and sell, But still, having listed at a
for most of that group: inven- 20 you need currency. But in to- high valuation, the stock has
tory. And it bears remember- 15 day’s world, money alone isn’t run up almost 15% to trade at
ing that retailers have differ- enough—it must be transmit- 27.5 times 2016 underlying
ent ways of accounting for 10 ted by sophisticated and in- earnings, which strip out the
that. 5 creasingly varied means. costs of a big technology in-
There are two methods re- 0 Worldpay, the payments vestment program that will
tailers use to value it, namely company that listed in Lon- diminish after this year.
–5
Reuters
Quarterly
the cost method and the re- don last October, has been Look at earnings as re-
tail method, according to Citi- 2010 ’11 ’12 ’13 ’14 ’15 building the technology to exported, however, and the
group. Sources: Urner Barry; Georgia Department of Agriculture THE WALL STREET JOURNAL. ploit modern commerce. But stock is at 37.8 times consen-
The main difference be- the giddy valuation of its sus forecasts for 2016, accord-
Checking Chicken Prices

tween them is how mark- stock is asking payment for ing to FactSet.
downs affect the income something that could take These multiples are enough
statement. years to deliver. to induce vertigo. Well-rated
Under the cost method, Any retailer no matter the U.S. rivals include Heartland
markdowns are recorded Why did the chicken cross ification. struck some buyers as odd size could sell more if only it Payment Systems on 34
when merchandise is sold. the road? To fetch a better The index’s value for given abundant supply in the didn’t matter whether the times, or Vantiv on 31.5 times
With the retail method, mark- price. whole birds has recently poultry market. money was coming from Visa reported earnings.
downs are recorded immedi- Amid an oversupplied been around $1.13 a pound. Tyson Foods, Sanderson or China UnionPay, across Morgan Stanley reckons
ately. poultry market, some of the Two other benchmarks used Farms, Pilgrim’s Pride and their counter or from some- other payments-company val-
For retailers, which largest processors in the mainly by commercial buyers Wayne Farms, all with an in- one’s living room or mobile uations will rise to-
method they use can affect country such as Tyson such as restaurants have put into the index, declined phone, from down the road or ward Worldpay’s level as in-
the timing of a margin hit. Foods, Pilgrim’s Pride and been around 70 cents to 85 to comment. from the other side of the vestors come to understand
Say a retailer had a lot of Sanderson Farms have cents. The effect on their bottom world. their potential.
clearance items sitting in its found a saving grace. A key The difference, or spread, lines is likely substantial. For This is Worldpay’s big sell- No doubt, retail is chang-
stores at the end of the third benchmark for pricing much in the fourth quarter aver- example, Sanderson reported ing point: a promise to trans- ing and technology is at the
quarter. of the meat sold at super- aged a whopping 39 cents. in December that in its fiscal mit money from any con- heart of that. Worldpay is in a
If it is using the cost markets in the U.S. has held For companies with a large year ended in October, it sold sumer to any business, good position to take advan-
method, its margins won’t up remarkably well. retail customer base, that is 3.4 billion pounds of poultry something that behind the tage, but Apple, Google and
get hit until the fourth quar- Too well, some critics sur- the difference between a and earned $336 million in scenes remains surprisingly others are trying to cut out
ter when the goods are sold mise. Fueling their doubt: profit or a loss. It also trans- operating income, or 9.8 complicated and difficult to the old infrastructure alto-
at the discounted price. The source of that bench- lates into billions more paid cents a pound. If one-quarter do. gether.
Under the retail method, mark is the companies them- by grocery shoppers. of its poultry had been There is growth potential Worldpay still has to finish
the margin hit happened right selves. True, any issue could Representatives of the U.S. priced using a competing pri- here. Worldpay can open up building some of its systems
away. be the result of quirks in the Department of Agriculture vate benchmark produced by card payments for online re- as well as persuade retailers
Most specialty retailers market or the survey. Even note the ice-packed, typically Urner Barry, it wouldn’t have tailers and help make online to buy them. The battle to
such as Abercrombie & Fitch, so, investors have learned smaller birds used for Geor- earned a cent in 2015. commerce easier for bricks- manage modern payments
Michael Kors and L Brands the hard way to not take gia Dock are a slightly differ- The Georgia Department and-mortar retailers. has barely begun.
use the cost method. Depart- market benchmarks for ent product than the kind re- of Agriculture declined to di- Fewer than one in five But Worldpay is priced as if it
ment stores such as TJX Cos, granted. In recent years, ported by other benchmarks. vulge company-specific de- of Worldpay’s U.K. small-busi- has already won.
J.C. Penney and Macy’s tend some have been found to But in the period from 2002 tails, but public records show ness customers and one in 10 —Paul J. Davies
to use the retail method. have been manipulated, in- through 2014 the premium Pilgrim’s Pride and Tyson of its U.S. customers use the
Granted, even at Macy’s cluding the London interbank was just 8% on average, and control about half of the 18 company for online payments,
the effect of high third-quar- offered rate. even then there was grum- contributing plants. The sur- according to Canaccord Genu- Delayed Payback
ter inventories won’t be felt In the chicken market, the bling. vey’s practice of removing ity. Payments companies'
until the fourth quarter. That concern centers on what is “The pricing is not even outliers more than one cent The group is expected to price/earnings multiples for 2016
is because the company was known as the Georgia Dock close. I’m paying 75 cents to- above or below the average increase revenue by 9% to Worldpay Group
trying to hold out for cold index. This is compiled when day. If you’re paying $1.13, may add to large companies’ 10% annually over the next 37.8 times
weather and waited until the the Georgia Department of you’re paying too much,” influence in setting prices. few years and expanding mar- Heartland Payment Systems
fourth quarter to mark down Agriculture surveys nine pro- says Scott Hunt, who buys The unusually high prices gins are expected to help 34.0
a good portion of its mer- cessors in the state, some of meat for Lawrence Wholesale may be a market anomaly profits grow in midteen per- Wirecard
chandise. which own multiple plants. in Vernon, Calif. rather than, as one observer centages each year out to 32.1
Vantiv
Investors should hope the They are asked how many The share of U.S. chicken says, a “self-fulfilling proph- 2018, according to Morgan 31.5
inventory headaches end pounds they sold of certain priced off Georgia Dock is ecy” for poultry companies. Stanley. Worldline
there. chicken parts at what price. roughly 10% to 15%. And the Even so, it is certainly conve- This is enviable stuff, at 23.3
There is no independent ver- pricing discrepancy has nient. —Spencer Jakab least among financial stocks. Source: FactSet
MONEY & INVESTING
Bitcoin Developer Cites Community Rift in His Exit

BY PAUL VIGNA tions that protect consumers Some are reluctant to raise the over the weekend, and many
and thwart crime. limit because the current struc- are still defending the currency
A prominent bitcoin devel- The rift stems from a limit ture is profitable for them. in the wake of Mr. Hearn’s
oper labeled the currency a that exists within the process In August, Mr. Hearn and comments.
failed experiment, widening the for confirming transactions on Gavin Andresen, one of bit- “Bitcoin has long experi-
rift over an arcane but critical the network. These transac- coin’s core developers, formally enced extreme debates and
technical issue that has divided tions are grouped into separate proposed raising the limit via misunderstandings,” said Sean
supporters and users of the blocks that are recorded on bit- an alternative version of bit- Neville, president of wallet-
digital currency for nearly a coin’s open ledger, called the coin called Bitcoin XT. This was services startup Circle. “And
year. blockchain. Those blocks have a an attempt at what is called in it’s another misunderstanding
“The fundamentals are bro- one-megabyte size limit, but as software circles a “hard fork”— that blockchain technology can
ken, and whatever happens to bitcoin’s popularity has grown, creating a new version of a sys- fail simply because governance
the price in the short term, the more transactions have the tem and forcing users to move and technical debates grow
long-term trend should proba- network bumping up against to the new version. The fight more difficult as bitcoin ma-
bly be downwards,” developer that limit. over it has been as bitter and tures.”
Mike Hearn wrote Thursday on If the limits aren’t raised, partisan as anything on the Another proposal, called Bit-
the blogging platform Medium. the result could be debilitating election trail. It has led to a coin Classic, has emerged from
“I will no longer be taking part bottlenecks in processing stalemate, which led to Mr. the ashes of the fight. It fea-
in bitcoin development and transactions. But changing it Hearn’s decision to walk away. tures a two-megabyte limit,
have sold all my coins.” could make bitcoin unprofitable This isn’t the first time with rules put in place to raise
Bitcoin is a digital currency for some of the miners, the somebody has written bitcoin’s it over time. It appears to be
that allows users to trade di- people who actually run the de- obituary. What is different is quickly winning support.
DAVID GRAY/REUTERS
rectly, without a bank or other centralized network. Mr. Hearn this obit was written by a “Sometimes it takes a crisis
middleman. Since its launch in and others have been vocal prominent insider, and it hit a to get everyone in a room,”
2009, it has fascinated people proponents of expanding the raw nerve. The price of bitcoin, said Fred Wilson of Union
with its potential to modernize size limits. Because bitcoin has which had been stable for Square Ventures, a venture-
the financial system, but it has no central authority, however, months, dropped sharply, down capital firm with bitcoin invest-
A bitcoin ATM in Australia. Fierce debate has sprung up over also worried many with its po- any change has to be approved 20% last week to $358. The ments, in a philosophical blog
how to handle the technical limits of the cryptocurrency. tential to run around regula- by a majority of the miners. price regained some ground post.
Private-Mortgage-Bond Market Is Recovering, but Slowly

BY JOE LIGHT he said. More than seven years that were made up of mort- vidson of mortgage-analytics “Clearly that was not a place
after the financial crisis began, gage securities originally is- Creeping Back company Andrew Davidson & where the industry should
Sales of the bonds that bond issuers, ratings compa- sued by now-defunct bank Issuance of private-label Co. have gone.”
helped spark the global finan- nies and the government are Washington Mutual. mortgage-backed securities On the opposite end of the Some private investors say
cial crisis are selling at their struggling to revive the pri- During the crisis, some in- credit spectrum, lenders have they want to take on more
quickest pace in five years. But vate-mortgage-bond market. vestors felt burned by bonds $1.2 trillion had trouble finding a sweet mortgage-credit risk but are
investors and analysts say Private mortgage bonds that weren’t as safe as be- spot of borrowers who don’t having trouble finding ways to
what is surprising about the helped drive the growth of lieved and by mortgage ser- 1.0 fit the requirements of govern- do it. Some investors as a re-
market for private-label mort- risky mortgages in the run-up vicers they felt didn’t always ment-backed mortgage pro- sult have turned to new securi-
gage-backed securities isn’t to the financial crisis and often have their best interests at 0.8 grams and yet still are low-risk ties issued by Fannie Mae and
how strong it is, but how mori- carried high ratings even heart. enough to be attractive to in- Freddie Mac.
bund. though the underlying loans To help reconstruct the 0.6 vestors and meet new federal Money-management firm
Financial institutions issued were to borrowers with shaky market, officials from the U.S. mortgage rules. AllianceBernstein L.P. invests
$61.6 billion in private mort- credit, unverified incomes and Treasury Department over the 0.4 Angel Oak Mortgage Solu- in the Fannie and Freddie se-
gage bonds in 2015, up from tiny down payments. past year and a half have $61.6
tions in December issued $135 curities, but because of the
$54.1 billion in 2014 but a frac- Few in the mortgage indus- brought together lenders, in- 0.2 million in subprime-mortgage- lack of a private-label market
billion
tion of the $1.19 trillion issued try want to see the riskiest vestors, ratings firms and backed securities in which bor- has also turned to buying
at the peak of the housing loans return, but they do want other stakeholders to devise 0 rowers paid an average rate of whole mortgage loans directly
boom in 2005, according to to see private investors take new deal terms that the par- ’07 ’09 ’11 ’13 ’15 7.5% but had an average credit from lenders, a relatively cum-
new data from Inside Mort- on a greater role. Right now, ties are comfortable with. Source: Inside Mortgage Finance score of 683 and down pay- bersome process that requires
gage Finance, a trade publica- the vast majority of mortgage But some analysts say that THE WALL STREET JOURNAL. ment of 28%. the firm to take on some of the
tion. bonds are guaranteed by the the private mortgage bond In comparison, the Federal responsibilities of managing
What’s more, most of 2015’s government through mort- market’s biggest hurdle right filled with jumbo mortgages Housing Administration backs the loans, said head of securi-
new mortgage bonds weren’t gage-finance companies Fan- now is that lenders think they loans to high-quality borrow- loans to borrowers with credit tized assets Michael Canter.
formed out of new loans but nie Mae, Freddie Mac or can make more money by ers. Large banks such as Wells scores as low as 580 and down “We want to have more
rather out of repackaged old agencies. hanging onto loans themselves Fargo & Co. and J.P. Morgan payments of 3.5%. mortgage credit risk in our
loans, underscoring how few Many of the new securities rather than by securitizing Chase & Co. lately have been “I don’t know if we will ever portfolios,” Mr. Canter said.
new mortgages are being secu- are merely repackaged. For ex- them and selling to investors. happy keeping such loans on go to the limits of when the “It’s only because of [the PLS]
ritized, said Inside Mortgage ample, in November, Fitch Rat- Apart from the repackaged their balance sheets, restrict- music stopped” during the breakdown that we had to ven-
Finance publisher Guy Cecala. ings issued ratings on four bonds, most postcrisis private- ing the supply available for se- boom, said Angel Oak head of ture into the whole loan
“The market’s on life support,” bonds packaged by Nomura label securities have been curitization, said Andrew Da- capital markets John Hsu. space.”
HEALTH & WELLNESS
Keep Up Good Habits Four Teams,

Four Questions
Making your resolution stick BURNING QUESTION | D2 JASON GAY | D6
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | D1
WHAT HAPPENS AT THE DOCTOR’S OFFICE Training the

Discussing health Brain to
Cope With
issues may help
keep medical
problems from
getting worse.
Depression
BY ANDREA PETERSEN
Hypertension is a
risk factor for heart A new treatment for psychiatric
disease and stroke. disorders like depression and anxi-
CONVERSATION BLOOD PRESSURE CHECK ety uses real-time scans to show
patients how their brains go
awry—and how to fix the dysfunc-
tion.
The treatment is called neuro-
Listening to the feedback.
heart and lungs There is an urgent need for
could reveal new approaches for psychiatric
disorders, particularly depression.
underlying disease.
Almost 17% of Americans will suf-
fer from major depression during
their lifetime, according to a 2012
Abnormal cholester- study published in the Interna-
ol and blood-sugar tional Journal of Methods in Psy-
levels may signal chiatric Research.
Not everyone responds to cur-
heart disease and rent treatments like antidepres-
diabetes risk. sant medication and talk therapy.
HEART AND LUNG SOUNDS BLOOD TEST
In one study of almost 3,000 pa-
tients, only about 1/3 of them
achieved remission from their de-
pression after up to 14 weeks on
Irregular color or the drug citalopram (brand name
Celexa).
moles may prompt
Neurofeedback aims to be more
ISTOCK (UPPER LEFT); GETTY IMAGES (5)
a referral to a precise than current therapies. It

dermatologist. directly targets the brain dysfunc-
tions and emotional and cognitive
processes that are understood to
underlie psychiatric disorders.
Doctors hope that treatments
Swollen glands may could also be personalized to ad-
indicate an infection dress the issues in each individ-
or thyroid problem. ual’s brain.
SKIN REVIEW GLAND CHECK Besides depression, neurofeed-
back is being studied in phobias,
Skip Your Annual Checkup?

obsessive-compulsive disorder, ad-
diction, traumatic brain injury and
chronic pain, among other ill-
nesses.
With neurofeedback, “there’s no
need to take medication and no
need to talk about your mother to
Doctors are divided over clair, who owns a commercial real-estate
company. He says the tumor was removed
“I think there are probably subsets of peo-
ple who can go longer than a year between
a stranger,” says Kymberly Young,
a postdoctoral associate at the
whether everyone really needs and he now seems to be fine. visits but I think it’s quite important for peo- Laureate Institute for Brain Re-
a yearly physical exam Nearly two-thirds of U.S. adults say they
get a physical exam every year, according to
ple to know their doctor before they get
sick,” says David Himmelstein, a primary-care
search in Tulsa, Okla.
In neurofeedback, patients lie
BY SUMATHI REDDY a 2014 Kaiser Family Foundation survey of doctor in Bronx, N.Y., and co-author of an edi- in a functional magnetic resonance
1,500 people. The federal Affordable Care Act torial published earlier in January in the imaging scanner. In general, they
Every year on his wedding anniversary requires insurers to cover annual physicals journal Annals of Internal Medicine in sup- are told to conjure memories or
Louis Sinclair pays a visit to his family physi- free of charge. port of annual checkups. look at pictures while their brains
cian for what has become a ritual: the annual In the medical community, however, ex- Some health-care systems have begun to are scanned. The activity of cer-
physical. perts are divided on whether there is a bene- scale back the role of annual checkups. tain brain regions related to sub-
“That way I don’t forget my anniversary fit to getting an annual exam. Some research HealthPartners, a Minneapolis-based insur- jects’ illnesses is analyzed via
and I don’t forget my physical,” says the 66- has shown regular physicals don’t reduce ance plan and network of clinics, has moved computer. Patients see visual rep-
year-old in Raleigh, N.C., who has been get- rates of illness or mortality and are a waste to include certain functions of the annual resentations of their brain activity
ting regular checkups since he was about 40. of health-care resources. They also could be exam into sick and chronic-care visits in- almost in real time—often pre-
About a year and a half ago, the doctor di- harmful, for example, when false positives re- stead. sented in the form of a thermome-
agnosed Mr. Sinclair with atrial fibrillation sult in additional, unnecessary testing. “What we’ve been trying to do is to use ter or colored bar.
and sent him to a cardiologist. A CT-scan Other experts say a yearly checkup is an every engagement we have with patients as Based on what their brains are
picked up a tumor on his lung that turned important part of building a physician-pa- an opportunity to assess what they might doing, subjects are told to enhance
out to be cancerous. “I would have never tient relationship and can lead to unexpected need for their preventive care,” says Beth or suppress that activity. Patients
known that if I hadn’t gone to my physical diagnoses such as of melanoma and depres- Averbeck, a senior medical director at Health- “need to train their brain like they
and followed up on this stuff,” says Mr. Sin- sion. Please see CHECKUP page D2 Please see BRAIN page D2
New Approach to Treating Overuse Injuries in Teens

BY LAURA LANDRO Garrett Tarbet, with TJ White, the
school’s head athletic trainer. Mr.
Last August, Garrett Tarbet, a White uses an electrical device to
kicker and defensive back on the reduce Garrett’s tendinitis pain and
varsity football team at Lakeside improve blood flow.
High School in Hot Springs, Ark.,
began feeling pain in his shins and of sports medicine at the Univer-
the left foot he uses as his plant- sity of California Los Angeles and
ing foot for kicking. The 17-year lead author of the recommenda-
old junior didn’t want to miss tions.
practice or play, so he kept quiet Access to athletic trainers in
and figured he’d “play through it school sports programs has dou-
and see if it got better.” bled over the last 20 years, but
It didn’t. Like many young ath- only about a third of high schools
letes, Garrett have full-time professionals on
THE INFORMED had gradually staff, according to the National
PATIENT developed an Athletic Trainers Association.
overuse or re- Moreover, many community pro-
petitive trauma grams such as soccer and gymnas-
injury. In his case, it was a form of tic leagues don’t have athletic
tendinitis. For the last six months, trainers on board. Some states are
he has been working on an inten- considering legislation to require a
sive rehabilitation program with medical professional be present at
RAY BOREL
his high school’s athletic trainer, high school sporting events,

TJ White. During his recovery Gar- Researchers are also learning
rett was able to continue to play more about overuse injuries. A
football. study, published in the January
Overuse injuries are caused by with a heavy practice and competi- cialize in sports-related injury and ing and conditioning regimens, 2015 Clinical Journal of Sports
repetitive stress on the muscle and tion schedule. Unrecognized and rehabilitation and are licensed or and scheduled rest periods. Re- Medicine, found that overuse ac-
skeletal system without enough untreated, they can sideline ath- otherwise regulated in 49 states quiring a pre-participation physi- counted for 52% of all injuries
rest to allow the body to adapt. letes from play and lead to more and the District of Columbia. cal exam to assess sport readiness among a random sample of sports
They are a special risk for devel- serious injuries and disability. The American Medical Society and identify prior injury patterns injury patients seen at Boston
oping bodies and immature skele- Now sports medicine experts for Sports Medicine published rec- “gives parents a better basis for Children’s Hospital from
tons and often happen during the are advocating a greater role for ommendations in 2014 warning of making a decision about their 2000-2009. Some 61% of the inju-
adolescent growth spurt. Studies athletic trainers like Mr. White, excessive focus on early intensive child’s participation,” including ries were to a lower extremity.
show these injuries account for who can help students recover training and competition, and rec- whether it is best to consider al- While overall injuries were
more than half of pediatric sports without incurring lasting damage ommended measures including ternative sports depending upon about evenly divided between
injuries and often happen due to or hampering their sports activi- limits on repetitive movements any particular vulnerabilities, says males and females, 63% of females
intensive focus on a single sport ties very much. The trainers spe- such as pitching, preventive train- John DiFiori, head of the division Please see INJURIES page D4
D2 | Tuesday, January 19, 2016 THE WALL STREET JOURNAL.
HEALTH & WELLNESS
BRAIN
Continued from the prior page
train their muscles when they
want to be fit,” says Anna Zilver-
PHOTO ILLUSTRATION: MAASTRICHT UNIVERSITY (4)

stand, a postdoctoral researcher at
the Icahn School of Medicine at
Mount Sinai in New York and lead
author of a 2015 study using neu-
rofeedback to treat women with a
phobia of spiders.
The science on neurofeedback
for psychiatric disorders is in its
early days. So far, studies are very
small and researchers are still fig-
uring out which brain areas to tar-
get and how many sessions to try.
Results are modest and it is un-
clear how long the effects of the A study on neurofeedback for women with a phobia of spiders used a series of pictures that became increasingly scary, left to right.
treatment last. Also, fMRI scans
are expensive, costing hundreds of subjects were told to recall posi- Zac Williams recently partici- way to make myself laugh,” he tion bias: They pay more attention
dollars. Some researchers believe tive autobiographical memories. At pated in two of the Tulsa neuro- says. to negative stimuli and have a
that neurofeedback will most likely the same time, they were shown feedback studies for depression. “I While fMRI neurofeedback is harder time disengaging from it.
be used in addition to current an image of a red bar, which coor- was going through a tough time. only a few years old, its principles The goal of the neurofeedback
medications and talk therapies. dinated with their own brain activ- My father had just died and my have been around for decades. training is to get depressed pa-
Dr. Young led a study of 23 de- ity. Subjects in the active group re- girlfriend broke up with me,” says Doctors and researchers have long tients to disengage from the nega-
pressed patients published in 2014 ceived feedback from their left the 26-year-old phone repair tech- used electroencephalograms (EEG), tive.
in the journal Plos One. In it, those amygdala, a part of the brain that nician from Tulsa. tests that record electrical activity, In a small pilot study without a
who received one session of active processes emotional memories. While he was in the scanner to perform a version of it. control group, depressed patients
neurofeedback for their illness saw The amygdala generally isn’t as and trying to get the red bar to But there are drawbacks with were shown a series of images
their scores on a measure of hap- active in depressed patients when rise, researchers told him to pick EEG. It is much less precise in tar- while in the scanner. In each one,
piness increase significantly more they think of positive autobio- several happy memories. He said geting brain areas than fMRI, says a sad face was superimposed on a
than those in a control group. graphical events. The level of he thought of getting his first car, David Linden, a psychiatrist and neutral scene, of a living room, for
In results from a more recent blunting correlates with the sever- a camping trip with friends and professor of translational neuro- example. Patients were told to fo-
study, Dr. Young says that after ity of symptoms. The control his first time riding a motorcycle. science at Cardiff University in cus on the scenes and ignore the
two sessions of neurofeedback, de- group also received feedback, but But those memories, he said, Wales who has studied the use of faces.
pression scores dropped 50%. In from a part of the brain involved “weren’t necessarily making the fMRI neurofeedback in depression. Because emotional stimuli like
the control group, they dropped in processing numbers and unre- bar go up.” So he tried thinking In a 2012 study of his, depressed faces activate certain parts of the
10%. These results are not yet pub- lated to depression. Subjects were about funny movies. When he re- patients saw their symptoms drop brain, the fMRI scan could distin-
lished, but were presented at the then told to make the red bar rise. called scenes of “Dumb and by 30% after four sessions of neu- guish what the subjects paid atten-
Society of Biological Psychiatry Beyond recalling happy memo- Dumber,” he says the bar spiked. rofeedback. tion to. The image was then
annual meeting in 2015. ries, subjects weren’t given spe- “It was kind of crazy to see some- Researchers at the University of changed based on the subjects’
Neurofeedback didn’t work for cific strategies on what to do to thing react based on your Texas at Austin are trying a novel brain activity: The more they paid
everyone: About 10% of depressed boost activity. But Dr. Young says thoughts.” approach. Instead of displaying attention to the scenes, the fainter
participants had normal amygdala that for women, thinking about Since the treatment, Mr. Wil- feedback as a chart or temperature the faces appeared. Seven de-
activity at the beginning of the childbirth or playing with pets liams says his mood has improved. gauge, they are using pictures that pressed adults had three sessions
studies. Another 10% of partici- boosted amygdala activity the He says he’s also using the skills change based on subjects’ brain of neurofeedback in a five-day pe-
pants couldn’t learn how to regu- most. For men, pondering thrilling he learned in the scanner when he activity. riod. Depression symptoms contin-
late the amygdala. pursuits like sky diving and sex led feels down. “If there is something Depressed patients tend to have ued to improve during the follow-
While in the scanner, study to the biggest rises. that bogs me down, I try to find a what is known as a negative atten- ing month.
Burning Question What’s the best way to keep up a New Year’s resolution?
Millions of people resolve at the beginning of each year to make themselves and their lives better, but many fail to reach
those goals. One expert, Frank Farley, a professor of psychological studies in education at Philadelphia’s Temple University,
explains why Charles Darwin would approve of New Year’s resolutions and offers some tips for making them more
successful.
—Heidi Mitchell
Change is Good people, adding a behavior is easier than monthly, and reward yourself for baby
Taking stock at the end of each cutting one out. steps along the way,” he says.
year is common in many areas, from “Getting to the gym isn’t all that The reward can be as simple as
inventory management to financial hard, even if that habit doesn’t last all positive affirmation. “There are two
reporting, and that naturally leads to year,” Dr. Farley says. But “getting rid forms of rewards: intrinsic, which is an
setting goals for the following year, of ingrained habits like smoking or internal sense of accomplishment and
says Dr. Farley, who specializes in eating chocolate every day since you is often lasting, or extrinsic, which
motivation and risk-taking. He says were a kid is quite difficult.” could be going out with a friend to a
Charles Darwin, considered by some to Some scientists have concluded that movie to celebrate.”
be the father of evolutionary thought, it takes, on average, 66 days of doing Specific, small metrics, such as
captured the basis for New Year’s something new to form a habit. But Dr. having saved an additional 5% of each
resolutions. Farley doesn’t buy that theory: “Not all paycheck for three months, shouldn’t
“He says that the species most habits are created equal,” he says. go unrewarded, and positive feedback
likely to survive is the one most for reaching part of a goal may
responsive to change,” Dr. Farley says. Strategies for Success encourage ongoing good practices, he
“We are always tweaking and fixing Dr. Farley, who is a former president says.
and tinkering, and a new calendar year of the American Psychological Dr. Farley says people shouldn’t
is the perfect time to readjust.” Association, suggests people make each start out having a plan B. “Stick to the
New Year’s resolution specific and time- clear, simple, original plan, though you
Taking It to the Goal Post stamped. “If you want to lose weight, might need to fine-tune the original
Losing weight, quitting smoking and you might say you’re not going to eat scheme as you go along the year,” he
being more financially responsible are french fries or ice cream for four says.
SUNG-IL KIM/CORBIS
three of the most common resolutions. months.” That shift in behavior will
Some of the biggest reasons people eventually lead the way to the final goal. Mix it Up resolution year after year,” which may catastrophize an occasional bad
fail to succeed is because they set He also recommends keeping the Setting goals annually is a great lead to boredom and a greater chance behavior. When you fall off your
goals that are too high or impossible number of goals small, and to write a idea, and shifting those goals each year of not succeeding, he says. Try schedule, it isn’t the end of the world.
to achieve in a given year, Dr. Farley list of beneficial behaviors to help get is even better, Dr. Farley says. “Don’t something new and run with it. Like Frank Sinatra said, dust yourself
says. He also points out that for most you there. “Check it often, maybe get stuck in a rut and repeat the same And, Dr. Farley says: “Don’t off and start all over again.”
CHECKUP
groups, including the Ameri- doctor may overlook, says medical professionals. This
can College of Physicians, Allan Goroll, a general inter- could “free up the primary-
which represents internists, nist at Massachusetts Gen- care physicians to do the
and the American Academy eral Hospital, who wrote the more complex and personal-
Continued from the prior page of Family Physicians, take no NEJM editorial in favor of ized work,” he says.
Partners. “Patients are trying stance on the issue. Individu- annual physicals. He notes On a recent day at NewY-
THE STORY IS to bring up more things at ally, some internists and pri- that, in an era of fee-for-ser- ork-Presbyterian Hospital in
one visit instead of having mary-care doctors say for vice medicine, physicals are New York City, internist Seth
JUST THE START multiple visits.” healthy, young adults, a often rushed and perfunc- Feltheimer had a number of
The evidence most fre- checkup may only be neces- tory. “So the question be- physicals scheduled. He said
WITH WSJ+ quently cited sary every three years or so. comes how can we revitalize between 20% and 30% of his
YOUR against the an- Annual physicals account this important aspect of patient load is annual exams.
We’ve taken what you love to read in the Journal HEALTH nual physical is for an average of 10% of pa- health care into what it was One patient he saw was a
a 2012 analysis tient visits for internists and woman with four different
and brought it to life. As a WSJ subscriber,
of 14 trials by primary-care physicians, ex- types of cancer. When her
you can activate your complimentary WSJ+ the Cochrane Collaboration perts say. blood cancer, which had
membership today for an exclusive that concluded physicals Competing editorials been in remission, became
don’t reduce mortality or ill- about annual physical exams newly active, Dr. Feltheimer
range of offers, events, and experiences such ness. Dr. Himmelstein noted ran in the New England caught the test result and
as the Chef’s Table dinner series. that the trials excluded el- Journal of Medicine in Octo- notified her hematologist.
derly patients. Also, most ber. The test had been ordered
DISCOVER MORE AT WSJPLUS.COM were performed in Europe, “We’re spending time on by a medical resident but no
where most patients were al- something that really isn’t one read the results until he
ready regularly seeing doc- clearly helping patients,” did.
GETTY IMAGES
tors, he says. Thus, the anal- said Ateev Mehrotra, an as- “I see a lot of people with
ysis failed to examine the sociate professor in the de- multiple medical issues,”
potential value for U.S. pa- partment of health care pol- says Dr. Feltheimer. “I want
tients of seeing a doctor reg- icy at Harvard Medical to make sure none of the
ularly. School, and author of one of specialists miss anything. It’s
The Society of General In- the editorials. “There will be up to me to coordinate their
ternal Medicine, a profes- people who went to their an- care.”
sional organization, recom- nual physical and something
Two-thirds of adults Another patient of Dr.
mended in 2013 against was identified,” Dr. Mehrotra get a yearly checkup Feltheimer’s, Ben Rubin, a
performing routine physicals said, in an interview. “But on 20-year-old New York Uni-
for asymptomatic adults. It a population basis do we
yet experts don’t versity student on the wres-
noted such exams “haven't want people who are other- agree on the value. tling team, came in for a
shown to be effective in re- wise feeling healthy to come physical to clear him for a
ducing morbidity, mortality in?” shoulder surgery the next
or hospitalization, while cre- Dr. Mehrotra believes always intended to be, an an- day. “Your [blood] pressure’s
ating a potential harm from healthy adults should see nual personal health review high, 150 over 80,” Dr.
unnecessary testing.” That their physician about every meaningful to both doctor Feltheimer tells Mr. Rubin. A
recommendation is currently three years and the visit and patient,” he said in an retina exam also shows signs
under review, says Zackary should focus more on rela- interview. of hypertension. “We’re go-
Berger, assistant professor tionship-building and less on Dr. Goroll supports dele- ing to do some tests for your
of general internal medicine random tests, such as blood gating some of the work high blood pressure,” which
at Johns Hopkins School of and urine. physicians typically do at a can affect the kidneys, Dr.
Medicine who is coordinat- A physician who knows a physical exam, such as re- Feltheimer says. “And you
ing the society’s review. patient well can detect viewing medications and giv- should see me again a month
Other professional health problems that another ing immunizations, to other after your surgery.”
THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | D3
HEALTH & WELLNESS
She Trains to Be Out of Her Comfort Zone, in a Bikini

BY JEN MURPHY Training for her first bikini
competition, Mina Agnos
As Mina Agnos approached 40, replaced distance running
she wondered if she would ever with high-intensity
achieve a slightly crazy fitness training and weights. Far
goal—six-pack abs. A healthy diet left, Ms. Agnos at Synergy
and running regimen of 18 to 30 Fitness Boca, home of the
miles a week had always kept her Synergy Show Stoppers
thin. But she lacked muscle tone. bikini team. As part of her
The president of Travelive, a strength training, she
luxury Mediterra- performs, near left, a
WHAT’S YOUR nean tour and va- kettlebell snatch, and
WORKOUT? cation company, below, a back row using a
Ms. Agnos splits TRX suspension trainer.
her time between Mark Van Bourgondien,
Athens and Boca Raton, Fla. Last owner of Synergy Fitness
summer in Boca Raton, her run- Boca, spots.
ning route took her past Synergy
Fitness Boca, where she saw peo-
ple doing outdoor workouts. She
went in and asked what it takes to
get to get a six-pack. She left with
a highly regulated diet and exer-
cise plan.
JOSH RITCHIE FOR THE WALL STREET JOURNAL (3)
A team of women at the gym,

the Synergy Show Stoppers, com-
petes in physique events with cat-
egories typically including “bikini,”
“figure,” “physique” and “body-
building.” Judges score bikini com-
petitors on balance, shape and
overall appearance, including com-
plexion, skin tone, poise and pre-
sentation. Ms. Agnos was invited
to join. “To put on a sparkly bikini
and strut around isn’t my person-
ality,” she says. “But I thought it
would take me way out of my com-
fort zone.” training to compete in the Interna- 50 push-ups. “That was how I got barbells, TRX suspension training, are 93 grams of lean protein, 125
Synergy’s owner, Mark Van tional Federation of Bodybuilding hooked,” she says. “I never rowing, body weight and high-in- grams of vegetables and 81 grams
Bourgondien, told her she’d need and Fitness and National Physique thought at 41 I’d be in the best tensity cardio. She focuses on two of complex carbohydrates.
to commit one hour a day to train- Committee Prestige Crystal Cup in shape of my life.” muscle groups each day. Ms. Agnos times a variety of
ing; the rest would come down to Boca Raton in July. On two days, she tacks on high- supplements around her workouts,
changing her diet. To the surprise Ms. Agnos went into the pro- The Workout intensity cardio such as sprinting including a multivitamin, Omega-3,
of her family, Ms. Agnos made the gram unable to do a single push- Ms. Agnos trains five days a while pulling a weighted sled. On proteins, amino acids and a recov-
commitment and, now at 41, is up. Within a month, she was doing week with a mix of free weights, Sunday, she practices competition ery drink. She says she misses
poses and sends videos back to wine and cheese.
Boca Raton for her trainer to cri-
tique. High heels are required. Ms. Cost and Gear
To Achieve Those Six-Pack Abs, Start in Your Kitchen Agnos has been testing spray-tan Ms. Agnos spends about $300 a
If your goal is to attain six-pack of easily digested proteins such as Bourgondien says. “It aids in balance, tones. “They help achieve a uni- month for gym and trainer fees,
abs, you may need to spend more chicken and fish. He tells clients to allows you to perform daily activities form complexion and bring out $60 a month for her nutritionist
time in the kitchen than the gym. limit foods that cause gas and bloat- with ease—and if you have a strong muscle tone,” she says. and $100 a month for massages.
“There’s a saying ‘You can’t outing, such as some cruciferous vegeta- core you are less likely to get in- She spent $125 to register as a Na-
exercise a bad diet’,” says Mark Van bles, onions and even lactose, a sugar jured.” The Diet tional Physique Committee athlete.
Bourgondien, a personal trainer and found in milk. Mr. Van Bourgondien says he can’t Ms. Agnos eats five times a day Competition fees range from $80
owner of Synergy Fitness Boca, in “A very clean diet and cardio are remember the last time he told a cli- and weighs all of her food. “I’ve to $150. Competition bikinis start
Boca Raton. “And abs, more so than what really strip away abdominal fat ent to do crunches. “There are more become really good at eyeing how at $200. Ms. Agnos spent $500 on
any other body part, are made in the to get down to the six-pack defini- effective exercises to target the abs many grams of a protein I should a custom bikini adorned with
kitchen.” tion,” says Mr. Van Bourgondien. which work the entire core and thus eat,” she says. rhinestones and Swarovski crystals
Mr. Van Bourgondien recommends A chiseled six-pack isn’t just for give you more bang for your buck,” Breakfast is four egg whites made by Buff Bikinis. She bought
a diet low in sodium, sugar and pro- vanity. “A strong core is essential in he says. and one egg, 30 grams of oatmeal her acrylic high heels for $50 on
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6. Beethoven—Diabelli Variations, Op. 120
7. Schubert—Piano Sonata No. 21 in B-flat Major
8. Chopin—Préludes, Op. 28
9. Chopin—Ballade in G Minor, Op. 23
10. Schumann—Kreisleriana
11. Liszt—Years of Pilgrimage
12. Liszt—Sonata in B Minor
13. Brahms—Handel Variations, Op. 24
14. Brahms—Six Pieces for Piano, Op. 118
15. Mussorgsky—Pictures at an Exhibition
16. Debussy—“The Sunken Cathedral”
17. Debussy—Préludes, Book One
18. Albéniz—Iberia
19. Ravel—Valses nobles et sentimentales
20. Scriabin—Piano Sonata No. 5
21. Rachmaninoff—Études-tableaux
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D4 | Tuesday, January 19, 2016 THE WALL STREET JOURNAL.
HEALTH & WELLNESS
Would-Be Parents Try Infertility Treatments at Home

BY MELINDA BECK
Juliana and Greg Tomlinson

started trying to have a baby on
their wedding night in 2011. After
a year without success, the Lan-
caster, Pa. couple says doctors di-
agnosed double trouble: Greg has
a low sperm count and Juliana has
polycystic ovarian syndrome
(PCOS), a hormonal disorder that
can make ovulation irregular. They
endured months of hormone treat-
ments, and a heartbreaking mis-
FROM LEFT: JT PHOTOGRAPHY; AMBER CARPENTER

carriage in 2014. Their Catholic
faith put in vitro fertilization out
of consideration.
Last February, their hopes
soared when Juliana
HEALTH noticed an at-home
JOURNAL insemination kit at
the pharmacy. The
over-the-counter de-
vice, called the Stork, helps deliver
sperm to the cervix and keeps
them there for hours, to increase
the chance of fertilization. Their
first attempt with it was unsuc- Juliana and Greg Tomlinson, of Lancaster, Pa., at left, are trying to conceive and have used an over-the-counter device called the Stork to help. At right, Amber
cessful. But the Tomlinsons are on Carpenter, left, and Nicole Posluszny, right, with their son, Jacob Elliot. Ms. Posluszny is expecting their second son in March.
a vitamin regime and plan to try it
again. “It’s important to keep your Levine, New York practice director “ferning” pattern in saliva that ap- below 20 million per milliliter. syringes can serve as a stand-in.
hopes high,” Juliana says. for the Colorado Center for Repro- pears up to 72 hours in advance. Home tests to assess how many Amber Carpenter, 31, and her wife,
Many would-be parents are try- ductive Medicine, a multistate fer- Doctors say ovulation predic- eggs remain in a woman’s ovaries Nicole Posluszny, 33, were success-
ing at-home products to help them tility practice. tors are especially useful for (the supply dwindles with age) ful on their first try using a male
conceive—often before, during and An estimated 10% to 12% of U.S. women who have irregular cycles also tell only part of the story, ex- friend’s sperm, a plastic Ziploc bag
after they seek professional treat- couples are struggling with infer- or may not ovulate every month. perts say. Most of the tests mea- and the syringe from a bottle of
ment for infertility. Products range tility, defined as not being able to But predictor kits aren’t infallible. sure follicle stimulating hormone liquid baby aspirin. “We thought,
from devices that mechanically as- conceive despite frequent unpro- They can be thrown off by illness (FSH), which the brain sends to Why not try it at home first and if
sist the uniting sperm and egg, to tected sex for at least one year, or or fertility drugs, and success-rate the ovaries to spur ovulation; a it doesn’t work out, we’ll go to a
tests that diagnose what’s going six months for women over age 35. claims are hard to verify. high FSH level may indicate dimin- doctor,” says Ms. Carpenter, who
wrong. Some are Food and Drug Many more are impatient, experts About 40% of fertility problems ished quality or quantity of eggs. had a baby boy 17 months ago. The
Administration approved; some say. And single women and gay originate with the male partner, Physicians say they now measure a couple used the same donor and
are MacGyver-esque uses for ordi- and lesbian couples eager to start experts say. For about $40, men different hormone made directly in method again, and now Ms.
nary household items. families are using do-it-yourself can check their own sperm con- the ovaries, or use ultrasound to Posluszny is expecting a baby boy
They offer couples more pri- conception kits with donor sperm centration with an at-home test. A see how many egg follicles are de- in March.
vacy than a fertility clinic and at or surrogates. normal level is considered 20 mil- veloping. Ovarian reserve test kits A type of assisted insemination
far less cost. A standard work-up Doctors say the most useful lion per milliliter of semen. say an elevated FSH suggests fur- called cervical cap insemination
for fertility issues can cost hun- products help couples understand Fertility experts say at-home ther testing may be warranted. holds semen in a cuplike device
dreds of dollars. A cycle of in vitro and monitor the woman’s monthly tests shouldn’t substitute for a for- The protective secretions that against the cervix, giving sperm
fertilization costs $12,500 on aver- cycles. “Some couples are just hav- mal semen analysis (costing about sperm must swim through can be more opportunity to swim
age, the American Society for Re- ing sex at the wrong time,” says $100), because an at-home test another source of problems. Some through. Engineer Stephen Bol-
productive Medicine says, and is Dr. Levine. can’t determine whether sperm nutritional supplements claim to linger invented the Stork by using
seldom covered by insurance. Home tests to predict or con- are properly shaped and able to help make cervical mucous more a racquetball split in half; he says
Fertility experts say some at- firm ovulation, by detecting hor- swim. “It could be false reassur- hospitable for conception. Some it helped his wife and him con-
home products are helpful but oth- mone changes in urine, have been ance,” says Owen Davis, a New couples also use over-the-counter ceive their two children. The $80
ers may be harmful. They caution on the market for decades; some York fertility specialist and presi- cough medications that thin out over-the-counter device got FDA
couples against believing every- have gone high-tech. Dozens of dent of the American Society for mucous. “I know some providers clearance in 2014. Fertility experts
thing they read online. “There’s a smartphone apps help women Reproductive Medicine. who swear by it. But it’s an off-la- say cervical cap insemination
lot of emotion surrounding preg- graph their monthly cycles. Some Packaging information for bel use and there is little hard evi- shouldn’t be confused with intra-
nancy and people look to do what- include wearable sensors to moni- SpermCheck Fertility says a nega- dence,” says Dr. Levine. uterine insemination (IUI), a medi-
ever they can to increase their tor body temperature and chemi- tive test isn’t definitive, either: When intercourse isn’t an op- cal procedure in which sperm is
odds and avoid seeing me,” says cal changes in the skin. Other ovu- Some 10% of men who have fa- tion—say, for a single woman, or placed directly into a woman’s
reproductive endocrinologist Brian lation predictor kits test for a thered children have sperm counts for couples using donor sperm— uterus.
FROM LEFT: LORI YORK; RAY BOREL
Garrett Tarbet, starting kicker for Lakeside High School in

Hot Springs, Ark. Right, Garrett stretches to reduce tension
on his patellar tendon.
INJURIES for athletic trainers to inter-

vene.
At Lakeside High School,
so Garrett could play during
the season. It included daily
stretching and applying hot
Continued from page D1 one of Garrett Tarbet’s and cold therapy with an
had overuse injuries, com- coaches was the first to no- electrical stimulation device
pared with 40% of males. tice his knee bothering him. to improve blood flow to
Anatomical differences are He sent him to see the ath- muscles and reduce pain.
partly to blame for the dis- letic trainer, Mr. White. At During football practice, Gar-
crepancy. Females are also first, Mr. White had Garrett rett kicked fewer balls and
more often playing in activi- resume wearing orthotic he rested for three days af-
ties with higher overuse shoe inserts he had ne- ter each game.
risks and less often playing glected to use. That helped Garrett, who was diag-
in sports with collision-risk, his shin pain, but it became nosed at age 8 with Type 1
such as football, according to apparent something more diabetes, wears an insulin
co-author Lyle Micheli, di- was going on, according to pump under his football uni-
rector of the division of Garret’s father Duane Tarbet, form. His father says the
sports medicine and an or- a lieutenant in the Hot condition hasn’t held him
thopedic surgeon at Boston Springs, Ark., Police Depart- back from sports and didn’t
Children’s. ment’s criminal investiga- affect his overuse injury.
Another study of a large tions unit. “Teenagers don’t Don Pierce, Lakeside’s
national sample of injuries tell you a lot, but he started athletic director, says his
reported by high school ath- coming home with ice packs coaches defer to the athletic
letic trainers, funded in part and complaining about pain trainers. “They know what
by the Centers for Disease and it was getting progres- kids can and can’t do, and if
Control and Prevention, and sively worse,” he says. TJ says they are out or need
published last March in the Lt. Tarbet set up an ap- to cut back on training we
Journal of Pediatrics, found pointment with orthopedic take them out or cut back,”
that overuse accounted for surgeon Lawrence Dodd, Mr. Pierce says.
7.7% of all injuries that kept Lakeside High’s team doctor, Though his football team
players from their sport for who diagnosed patellar ten- ended up losing in the play-
at least a day. Overuse inju- dinitis, an injury to the ten- offs, Garrett says he is happy
ries by sport ranged from a don that runs from the knee- he got to stay in the game
low of 1.4% of boy’s ice cap to the shinbone and can until the season ended last
hockey injuries to a high of be strained during jumping month.
55.7% of boy’s swimming and and landing. The patellar Though he plans to play
diving injuries. tendon attaches to the on the soccer team in the
“Overuse injuries should growth plate of the kneecap, coming spring season, he is
never happen in first place, and repetitive stress on the in a rest period now. He con-
or they should be caught tendon can irritate and in- tinues to work on rehabilita-
when they are so minor that jure the growth plate in tion with Mr. White three to
rest can prevent them from young athletes. four days a week.
turning into a medical is- As only one of two kick- Athletic trainers play an
sue,” says study co-author ers Garrett didn’t want to let integral role in preventing
Dawn Comstock, an associate his team down, so after con- overuse injuries in young
professor at the Colorado ferring with his parents, he athletes, but “the horse is of-
School of Public Health at says he decided to “manage ten out of the barn by the
University of Colorado An- it as it goes along, and as time the athletic trainer gets
schutz. Because coaches may soon as football season ends, involved,” Dr. Micheli says.
discount overuse injuries take a long rest” before “We have to look at the de-
and athletes may hide them starting soccer in the spring. sign of our training pro-
for fear of missing competi- Dr. Dodd and Mr. White con- grams before the kids get
tion, she says, it is important sulted on a therapy routine the injuries.”
THE WALL STREET JOURNAL. Tuesday, January 19, 2016 | D5
ARTS IN REVIEW
CULTURAL COMMENTARY PHOTOGRAPHY
The Lingering Scars of Life

Ishiuchi Miyako:
Postwar Shadows
and
The Younger
Generation:
MAX OPPENHEIM/GETTY IMAGES
Contemporary
Japanese Photography
Getty Center
Through Feb. 21
BY RICHARD B. WOODWARD
W
Los Angeles
Does any figure—even one as interesting as Orson Welles—really omen have been nota-
warrant 1,771 pages of investigation? bly absent in the re-
J. PAUL GETTY MUSEUM/MIYAKO ISHIUCHI

discovery of postwar
Doorstops Galore Japanese photography by U.S.

museums over the past two de-
cades. While curators at SF-
BY JOANNE KAUFMAN A. Caro’s 1,246-page X-ray of MoMA, the Getty Center, and
I
Robert Moses, “The Power MFA Houston have turned
n high school, all of us un- Broker”); perhaps valuable Daido Moriyama, Shomei
fortunates in Mr. Guilmet’s new information is brought to Tomatsu, Takuma Nakahira, Ei-
third-period sophomore bear (like the archival material koh Hosoe, Hiroshi Hamaya
history class were ordered to that enriched David Mc- and others into increasingly fa-
read a biography of our own Cullough’s biography of Harry miliar names, the lack of fe-
choosing as an add-on to the Truman). Perhaps it’s both male counterparts in these ex- ‘1·9·4·7 #15’ (1988-89), by Miyako Ishiuchi, Japan’s most prominent living woman photographer.
regular coursework. Eager to (Mr. Richardson’s “The Life of hibitions has been a puzzle.
please, I sensed the wisdom of Picasso”). Did so few seriously practice grew up, these foreign intru- appreciation of skin as a kind ent outfits, while Otsuka Chino
picking a book whose covers Rather more often, though, the art after World War II that sions are noted furtively, in of memory, and by extension adds her grown-up body to
were far apart. It was “Born to the length is excessive, absurd history could justly pass them snapshots of a sailor’s denim how any painful experience can scanned color snapshots of her
Succeed,” Elizabeth Longford’s even. Here I’m thinking of Syl- over? Were their opportunities jacket emblazoned with a skull leave a lasting impression, as girlish self. The fantastical, su-
1964 doorstop on the life of via Jukes Morris’s two vol- so reduced, compared with and cross-bones or of an alley- the violence of light does on a per-saturated color images by
Queen Victoria. And for years umes and 1,296 pages on play- those for men, that their pho- way with “Welcome U.S. Navy” photographic plate. Shiga Lieko, featured in MFA
afterward my fragile ego was wright-turned-pol Clare tographs were less vital? Or written on the wall. She later Her ethereal color images of Boston’s recent “In the Wake:
buoyed by the memory of my Boothe Luce). did the sensibility of the work discovered that many buildings clothing worn by Japanese Photographers Respond to 3-11”
teacher’s approving nod (and And consider Charles not travel well? she photographed in the ’70s, women after the atomic blast and in MoMA’s current “Ocean
by the opprobrium heaped on Moore’s biography of the simi- “Ishiuchi Miyako: Postwar for her series “Endless Night,” at Hiroshima are less surgical. of Images: New Photography
classmates who’d chosen skin- larly tough-minded Margaret Shadows” at the Getty Center had earlier been brothels that Shot against a light box, they 2015,” portray ritualistic out-
nier books). Thatcher. The second install- offers some tentative answers. serviced the U.S. military. float against their neutral door performances by villagers
If I were handed the same ment will be published in the The most prominent living Beginning in the late ’80s backgrounds, in a style similar in the rural north of Japan,
assignment today, I might well U.S. this month with another Japanese woman photogra- to Irving Penn’s 1970s close- where she lives. Onodera Yuki’s
regret my vanity. Lady Long- yet to come. The first two vol- pher—winner of the Hasselblad ups of street detritus. Her sub- black-and-white photos of sec-
ford required a mere 653 umes—1,684 pages—cover Award in 2014—the 68-year- Interest in the avant- ject is far weightier than his, ondhand clothes isolated
pages to chronicle the life of a events up to 1987, when old Ms. Ishiuchi is also a femi- garde of postwar Japan though. And, as in her series against the sky are meant to
British monarch whose 63½- Thatcher left office. Volume nist pioneer. For over a decade, here on personal articles be- convey the spirit of the person
year reign was marked by three, it seems, will be de- in contemporary surveys inside continues to grow. longing to her deceased who once wore them. Kawauchi
seismic societal change. Some voted to her twilight years and outside her home country, mother, the images seem too Rinko is the best-known artist
contemporary biographers of (she died in 2013). Even she was sometimes the only appealing for the grave mat- of these five, and the delicate
similarly commanding fig- Thatcher’s most ardent fans woman asked to exhibit. and into the ’90s, Ms. Ishiuchi ters they seek to address. color prints from her series
ures—and a handful of dis- may wonder if the material Her career was launched moved away from the subjects One can applaud both her “Cui Cui”—scenes of family
tinctly lesser lights—have that’s left to mine is worth a with a pair of books in the late and high-contrast printing of surmounting of barriers and gatherings and ordinary life,
barely cleared their throats at book of its own. ’70s, “Apartment” and “Yoko- her youth, as if trying to dis- her filial piety—she was born viewed as if distant memories—
the 653-page mark. They’ve But at least there’s conso- suka Story,” that she paid to tance herself from her male Fujikura Yoko and in 1975 are the most affecting here.
got hundreds more pages to have published with the money colleagues. (According to assis- changed her professional name The context in which Ms.
go before they sleep. her father had set aside for her tant curator Amanda Maddox’s to Ishiuchi Miyako, her Ishiuchi came to maturity was
You know the books I mean: Biographies keep wedding. Her photographs in fine catalog essay, Ms. Ishiuchi mother’s maiden name—while the subject of last year’s “For a
no stone left unturned, no getting longer, but are each presented the interiors was often asked if she had also observing that the later New World to Come: Experi-
thought unexpressed, no moti- and streets of Japan as menac- been Mr. Moriyama’s student.) work traffics in sentimentality. ments in Japanese Art and
vation unpondered, no account higher page counts ing places, where darkness Her big, luxurious, smooth- i i i Photography, 1968-1979” at the
of a campaign, setback, cre- useful for readers? crowded out the light. toned black-and-white close- The Getty’s companion MFA Houston. The reopening
ative struggle, performance or She developed and printed ups of women’s bodies from show, “The Younger Genera- this spring of an expanded SF-
romantic entanglement elided, her film to bring out the grain this middle period are the tion: Contemporary Japanese MoMA, with perhaps the best
no visit to the bathroom un- of black-and-white. Although highlight of this retrospective. Photography,” features 62 collection of Japanese art pho-
parsed. Leave the reader nance between page count and this high-contrast aesthetic be- One series, from 1988-89, ex- prints by five women who have tography outside Japan, should
wanting more? If only. Ency- the Iron Lady’s place in his- came a world-wide cliché in amines middle-aged hands and benefited from Ms. Ishiuchi’s further deepen appreciation.
clopedic has gotten confused tory. It would be tough to the ’70s—dusty grit that could feet—wrinkled, calloused, or trail-blazing. Born in the 1960s That the avant-garde of post-
with definitive; prolix with make the same claim for the be added to any scene for some polished by time—in loving de- or later, they represent a dis- war Japan continues to be a
profound; exhausting with ex- actress Barbara Stanwyck, ready-made Brutalism—the tail. A series from 1994-2002 parate range of approaches, priority for U.S. curators indi-
haustive. whose story is being told by technique was effective for documents scars on abdomens from Conceptual self-portrai- cates how many artists were
Readers have lots of oppor- Victoria Wilson in two vol- many Japanese photographers and arms, stitch marks left by ture to Expressionist shaman- overlooked for years and how
tunities to mull those distinc- umes. Part one weighed in at in suggesting the trauma of the unnamed misfortunes. The ism to Zen-like documentary. much more there is still to be
tions with the help of Simon 1,044 pages. American postwar occupation. captions are terse—“Scars #19 Sawada Tomoko mocks stu- learned about them.
Callow’s biography of Orson Fortunately, cooler heads In Ms. Ishiuchi’s uncap- (Illness 1964)” or “Scars #46 dio portraits of brides—and
Welles; the third volume will sometimes prevail. “I come at tioned images of Yokosuka, the (War 1945)”—as if she wants Japanese conformity—by pho- Mr. Woodward is an arts
be released in the U.S. in April it from the school of Time city in greater Tokyo where she nothing to interfere with an tographing herself in 30 differ- critic in New York.
(aggregate total: 1,771 pages). writers,” said Richard Zoglin,
Last month, the third and final that magazine’s theater critic
volume of A. David Moody’s and the author of “Hope: En- ART
biography of Ezra Pound was tertainer of the Century,” a
String Theory
published. The whole en- well-regarded biography of
deavor: 1,568 pages. The 1,640 Bob Hope published earlier
pages that comprise the first this year.
three volumes of John Rich- “I knew there was going to
ardson’s biography of Picasso be a huge amount of material parallel vertical lines are con-
take us to 1932. Presumably, on a guy like Hope, who lived Fred Sandback: Light, nected at their base by a diago-
the long aborning volume 4 to be 100,” Mr. Zoglin contin- Space, Facts nal, which torques the white
will get us to the finish line— ued, “and . . . I wanted to have Glenstone paper plane.
the master’s death in 1973. enough bulk that people would Through Dec. 2016 Further inside the museum
“You have authors who see it as definitive but not so (without distracting windows),
have devoted so much time to long that people would be BY LANCE ESPLUND the show sings. “Untitled”
a subject that they can’t help turned off by it.” His 565 (1968) is a vertical, slightly ele-
J
making their book a long pages did the job. Thanks for Potomac, Md. vated turquoise-blue-cord rect-
book,” said Simon & Schuster’s sparing us some of the memo- ust inside Glenstone Mu- angle that spans a gallery cor-
CATHY CARVER/GLENSTONE
publisher Jonathan Karp. ries. seum, in a seating area ad- ner. Off-center, it is as
“They’ve invested so much I’m a fool to hoist you. That jacent to the first gallery disconcerting as a door that
time that they see it as rea- was my first thought as I of the beguiling 15-work retro- can’t be closed. The nearly 20-
sonable for a reader to invest opened the large envelope spective “Fred Sandback: Light, foot-wide beige-yarn “Untitled
a lot of time too. containing “Sinatra: The Space, Facts,” visitors can look (Trapezoid)” (1968/1989)
“I do think a lot of biogra- Chairman,” the recently pub- at Sandback’s artworks and climbs a wall like a transparent
phers go down the rabbit lished second volume of James take in panoramic views of the pyramid face. And “Untitled
hole,” Mr. Karp added. “It’s an Kaplan’s biography of Ol’ Blue pond, weeping willows and Fred Sandback’s ’Untitled (Sculptural Study, Six-Part (Sculptural Study, Seventeen-
occupational hazard.” Eyes. I recall being ol’ bleary contemporary sculpture out- Construction)’ (c. 1977/2008). Part Right-Angled Construc-
Obviously, sometimes the eyes as I worked my way side on the manicured grounds. tion)” (1985-2006)—a floor-to-
literary long march is exactly through the first volume, “Si- They can also handle balls of Sandback’s colored threads Red, Yellow, Blue’ 1930” ceiling row of L-shaped pieces
what’s called for. Perhaps the natra: The Voice,” which at its fuzzy acrylic yarn—Sandback’s register as tints, latent dynam- (2003), a 20-inch-square piece of red-yarn—doubles as wall
subject is a fresh one (Robert best read almost like a novel. signature sculpting material, ics, aftereffects. As you move of plywood, in which Sandback and swiftly moving river.
But at 786 pages it did require which he used to define spaces around and through “Broadway routed out Mondrian’s black Remarkable, too, is “Unti-
commitment. rather than create forms. Boogie Woogie,” the pairs con- lines into shallow channels and tled (Sculptural Study, Six-Part
Pepper ... Volume two is even longer. It’s the same crafts-store jure contours of nearly invisi- then painted the entire sculp- Construction)” (c. 1977/2008),
Still, I plunged in eagerly only yarn used to make Sandback’s ble support columns, adding a ture a warm, velvety black. an evenly spaced row of six
And Salt to be mired in a stew of gos- large installation “Broadway sense of layering and transpar- Also on view in the first gallery identical floor-to-ceiling U-
THE WALL STREET JOURNAL sip, speculation and minutiae. Boogie Woogie (Sculptural ency, as if space were being is a vibrant wall construction shapes of black yarn, each per-
I couldn’t make myself care Study, Twenty-Eight Part Verti- carved, stretched and molded suggesting a black, yellow and pendicular to the next; the row
about the disparate opinions cal Construction)” (1991/2006). into volumes and glass-like gray drawing but made of moves diagonally across the
set forth on why Frank’s third One of two homages here to planes. The strands also echo three straight pieces of yarn. gallery, like a dancer spun
wife, Mia Farrow, cut her hair. the primary-colored paintings aspects of the architecture. And in “Untitled (Red Floor along the floor. It is arresting
Nor could I work up the en- of Mondrian, it comprises a Space begins to vibrate—as if Piece)” (1967), a sculpture of as much for its severity as for
ergy to wonder, as Mr. Kaplan forest-like grouping of 28 ver- plucked like strings. mostly air, Sandback used red its transformation of the space.
does, about the reason Ms. tical pairs of yarn (eight blue, Born in Bronxville, N.Y., cord and wire to outline the Emily Rales, the show’s cu-
Farrow, in her memoir “What nine red and 11 yellow) spaced Frederick Lane Sandback shape of a 22-foot-long piece rator, said she knew this piece
Falls Away,” muddled the time about a foot apart and (1943-2003) was a purist, Mini- of lumber. It walks the line be- was powerful when members of
line for a notorious incident stretched taut, floor to ceiling. malist, constructivist and per- tween art and illusion. Glenstone’s grounds crew en-
involving Sinatra, a golf cart We are accustomed in art to haps a bit of a troublemaker. An Sandback charms and per- tered the space and were
and the entrance to the Sands seeing line as the contour, de- early lover of strings, he made plexes. But his homages to stopped dead. One man told her
Hotel. marcation and boundary of a dulcimers and banjos before go- Mondrian cannot compete with he was afraid to step through
There’s only so much infor- form; but at his best, Sandback ing to Yale, where he received a abundant nature seen outside the sculpture’s invisible
mation I can absorb before I transforms yarn into pure ab- bachelor’s degree in philosophy Glenstone’s windows. Uncon- planes—concerned he might
become chairman of the stract color movements—si- and MFA in sculpture. tained, these artworks lack enter another dimension. He
bored. multaneously edge, energy, The show’s other reinterpre- Mondrian’s dynamic equilib- didn’t realize he already had.
“All data indicates your num- spine, vein. He transmutes void tation of a Mondrian classic is rium. Closer to the Dutch mas-
bers will improve once voters Ms. Kaufman writes about into volume. the wall-mounted “‘Black Piet’ ter’s aims is Sandback’s 1989 Mr. Esplund writes about
get over your yuck factor.” culture for the Journal. Initially barely noticeable, After P.M.: ‘Composition With pastel drawing in which two art for the Journal.
D6 | Tuesday, January 19, 2016 * * THE WALL STREET JOURNAL.
SPORTS
Heard On Four NFL Teams, Four Questions
The Field I don’t know about you, but I
watched a lot of substandard NFL
football this season. With a hand-
ful of exceptions, the quarterback
play was generally wretched. The
coaching was vague and peculiar.
CLOCKWISE FROM TOP LEFT: MADDIE MEYER/GETTY IMAGES, SEAN M. HAFFEY/GETTY IMAGES, JACOB KUPFERMAN/ZUMA PRESS, CHRISTIAN PETERSEN/GETTY IMAGES
The average regular-season game
felt like watching a small dog try
to drag a bag of laundry up the
stairs. Nothing about it was grace-
ful. Still, I watched.
The playoffs have been an im-
provement, albeit a mild one. In
the wild-card round, the Seahawks
won when the Vi-
kings blew an easy
field goal, and the
GETTY IMAGES
Steelers won when

the Bengals unrav-
eled mentally like
JASON they were stuck in
GAY the long line at the
Going on the Offensive airport. On Saturday,
the Chiefs idled
With Coaching Hires through the waning moments of a Clockwise from top left, New England Patriots quarterback Tom Brady takes on Denver Broncos quarterback Peyton
When the Philadelphia Eagles close game with the Patriots as if Manning, while Arizona Cardinals quarterback Carson Palmer faces Carolina Panthers quarterback Cam Newton.
hired Chip Kelly as their head coach, they were leisurely getting a pedi-
they were betting on an unknown cure. The next day, the Panthers
commodity making a successful rolled to a 31-0 first half lead
transition to the NFL. For Kelly’s re- against Seattle, only to watch the
placement, they’re going with the Seahawks yank nearly all of it
opposite: a familiar face and con- back. A blowout was whittled
ventional choice. down to an escape.
The Eagles announced the hiring There was a humdinger in
of Doug Pederson (pictured) as its there, for sure: Arizona’s victory
next coach, who comes to the team over Green Bay, in which the Pack-
after three seasons as the Chiefs’ ers tied it on a ridiculous final-
offensive coordinator under Andy seconds Hail Mary chuck from
Reid. Prior to that, Pederson had quarterback Aaron Rodgers, but
worked for Reid and the Eagles as then lost in overtime to the mag-
the team’s quarterbacks and offen- nificent Cardinals combo of Car-
sive quality control coach. Peder- son Palmer and Larry Fitzgerald.
son’s career as an NFL backup That game had a bit of everything,
quarterback included a stop with and served to remind how sublime
the Eagles in 1999. an NFL contest can be. Though
With the Eagles, Pederson will Cards-Pack wasn’t without its own
be tasked with turning around a gaffe: the pre-overtime coin flip
franchise that went 7-9 in 2015 af- was actually repeated because the
ter back-to-back 10-6 seasons, in- referee judged that the coin
cluding an NFC East title in 2013. didn’t, in fact, flip. Thankfully, the drinks. After the Panthers raced to coin is actually really hard to do, Gronkowski and Julian Edelman are
Pederson’s Chiefs lost in the AFC Cardinals won both the disputed 31-0, the Big Consensus Opinion even if you try to not flip it on recombined and healthy-ish, Brady
Divisional round to the Patriots, al- flip and the second flip, as well as was Carolina Looks Unstoppable purpose. You sort of have to palm has options and seems frighteningly
lowing Philadelphia to make the hir- the game, or congressional hear- and Is Going to Smush Everybody it skyward like a pizza, and even at ease. Patriots fans may regret
ing official. ings would have been called for En Route to Their First Super Bowl then, you usually get a flip or two. those late-season losses to the New
So far this off-season, every first thing on Tuesday. Title. After Seattle scored 24 unan- Again, not to dwell, because this York Jets and Miami Dolphins
head coaching hire has followed a In the end, the NFL wins, be- swered in the second half, the Big “controversy” pales in comparison which took away their chance to
similar strategy: find an offensive- cause the NFL pretty much always Consensus Opinion flip-flopped to the rot of match-fixing corrup- host Sunday’s AFC title game, but if
minded coach. wins. Our four final teams are the over to I Really Have No Idea tion in pro tennis newly alleged by the cost was recuperation, it was
Pederson, 47, is one of several best four: Carolina and Arizona, the What to Think, Man. The Panthers a BBC/BuzzFeed investigation, but probably worth the cost.
offensive-minded assistants being No. 1 and No. 2 seeds of the NFC, did this before: They let a 35-7 after the conspiratorial couple of 4. So Peyton Manning: it’s
given a first chance at running a and Denver and New England, the second-half lead evaporate against years that the NFL has been happening, huh?
team along with Ben McAdoo (New No. 1 and No. 2 of the AFC. It is ev- the Giants in late December before though, could you imagine if a It seems to be! Barely a month
York Giants), Dirk Koetter (Tampa erything we supposedly want: four prevailing on a field goal. So who playoff game of this intensity—or ago, the belief was that Peyton Was
Bay Buccaneers) and Adam Gase high quality teams, brand name is the real Carolina—the relentless heaven forbid, involving the Patri- Done and the Brock Osweiler Era
(Miami Dolphins). While Pederson quarterbacks (presumed MVP Cam scoring machine helmed by New- ots—had been impacted by a non- had commenced in Denver, and if
is returning to his former team, Newton, probable MVP runner-up ton and a playmaking defense, or flip coin flip? Today, you should you weren’t on board, you just
McAdoo and Koetter are even more Carson Palmer, and geezer icons the weirdly complacent outfit ca- say a small prayer of thanks that weren’t paying attention. And then
familiar to their new posts—they Tom Brady and Peyton Manning). pable of dozing off with a big there is no term as agonizing as Manning replaces Brocky in the reg-
were promoted internally from of- It’s the kind of Sunday that makes lead? You’d think the Panthers now “Coinflipgate.” ular-season finale and he leads Den-
fensive coordinator to head coach. league executives slap high-fives have a near-choke out of their sys- (All of this said, Arizona-Caro- ver to a ferocious comeback and a
Meanwhile, the 49ers hired Kelly and network executives write fool- tem but: I really have no idea what lina is very hard to choose. But if I playoff win over Pittsburgh and
to replace Jim Tomsula, hoping that ish checks. The TV ratings will be to think, man. had to choose, I choose tails.) looks like the Peyton Manning of
Kelly’s fast-paced offensive system comically high, and I expect both 2. Does Arizona bring the 3. The Patriots are kind of old and…OK, that’s not exactly how
can bring new life to their franchise games to be more graceful than a Non-Flip Magic Coin with them back? it has gone down. It has been a bit
and perhaps revive the career of small dog carrying a bag of laundry to Charlotte for the NFC Champi- Yes, they are. If you are a Patri- scattershot. There are moments
quarterback Colin Kaepernick. up the stairs. At last marginally onship, and later, hopefully, ots Loather, you weren’t happy on when Peyton flashes some classic
In Tennessee, the Titans gave in- more graceful. Santa Clara for Super Bowl L? Saturday as New England reassem- Peyton but there are more moments
terim coach Mike Mularkey the full- I don’t want to diminish the on- bled its injury-plagued roster and in which the benched Osweiler must
time job after he had served as an Here are the four big questions: field accomplishments of the Car- played like the Patriots of Septem- want to run back into the locker
offensive assistant for them since 1. Why doesn’t everyone give dinals, who have been one of the ber and October, vanquishing Kan- room and scream loudly into his
2014. And like Kelly and Mularkey, Carolina full respect? They went few pure pleasures of this NFL sea- sas City, which was riding an 11- helmet. Let’s just say this: quarter-
Cincinnati offensive coordinator Hue 15-1, defeated all comers, blew son, and in Palmer, Fitzgerald and game win streak. It has been back play remains an issue for Den-
Jackson is getting another chance out Seattle in the opening round the stylish head coach Bruce Ari- scientifically proven that the only ver. And yet momentum has taken
as a top dog with the Cleveland and…whoa, now wait a second! ans have some of the best stories ways to stop Tom Brady are to A) over: there is another Brady-Man-
Browns. Jackson was head coach of You have to love any sporting in football. And yet: the flipping hand him a bowl of Frosted Flakes ning Bowl upon us, and Peyton’s
the Oakland Raiders in 2011 and contest in which you can hear the coin didn’t flip! Not only was this with extra sugar or B) take away his Last Stand may be the most emo-
finished with an 8-8 record, but Big Consensus Opinion of the crazy given the stakes—“You can’t favorite weapons and make him tional story of these playoffs. Un-
was fired after only one season. Game aggressively change, like a make any of this up,” Al Michaels throw to orange cones from the less someone botches another coin
—Andrew Beaton bad cousin after Thanksgiving said on NBC—but not flipping a parking lot. But now that Rob flip, which would be amazing.
Tennis Season Opens to Accusations of Match Fixing

BY TOM PERROTTA Tennis Integrity Unit, said that all ac- in the non-glamorous corners of the
tivity referred to the unit is investi- sport, where players such as Winston
Melbourne, Australia gated. Lin try to stay afloat financially while
A media investigation alleging that “Everything that comes into the hoping one day to play in a tourna-
tennis isn’t doing enough to catch unit is actioned, it’s assessed,” Willer- ment like the Australian Open.
match fixers dominated the debut ton said. “But as I say, corruption is Since graduating from Columbia
hours of the Australian Open Monday, very difficult to detect and to obtain University last year, Lin has played
drawing heated denials from officials the evidence to prosecute these peo- around five dozen matches in singles
of the sport. ple who unfortunately go down that and doubles and earned a ranking of
“The Tennis Integrity Unit and the path.” No. 839 in the world. He has earned a
tennis authorities absolutely reject paltry $7,000 in prize money, accord-
any suggestion that evidence of match ing to the website of the ATP Tour.
fixing has been suppressed for any
“I would love to hear Yet betting on the sport is so per-
reason or isn’t being thoroughly inves- names,” Roger Federer vasive that even matches at Lin’s level
tigated,” Chris Kermode, chairman of are gambled upon. Lin said he has
the men’s tour, said in a news confer-
said of accusations about never been approached about fixing a
ence Monday at the Australian Open. match fixing. match, but he knows others who have.
That assertion came in response to “They get hate messages from bet-
a BBC/BuzzFeed News report alleging tors on Facebook, or they get offers to
that tennis officials have all but ig- Novak Djokovic, the world’s top- throw a match,” Lin said. “A lot of the
nored suspicious betting patterns in ranked player, said Monday that when times it’s someone from the [Interna-
SETH WENIG/ASSOCIATED PRESS
matches involving a number players he was breaking in as a professional tional Tennis Federation] trying to
ranked in the top 50, including past several years ago, a member of his catch people. They pose as someone
winners of Grand Slam singles and team was approached about fixing a trying to bet on a match and they of-
doubles titles. A core group of 16 match. “Of course, we threw it away fer for you to throw it, and if you say
players, the report alleges, “have re- right away,” Djokovic said. “There is yes, they catch you and ban you.”
peatedly been reported for losing no room for it in any sport, especially A native of Buffalo, N.Y., Lin has an
games when highly suspicious bets in tennis.” Ivy League education to fall back on.
have been placed against them.” The The BuzzFeed/BBC report said it In an interview this fall, he said, “My
report doesn’t name any of the 16. couldn’t name players involved in sus- ATP chairman Chris Kermode said the sport actively polices corruption. family has supported me for now, but
Tennis is a particularly easy sport picious matches for lack of proof of I don’t know how long that can last.”
to fix, since only two players are in- wrongdoing. That vagueness created in the integrity unit so far, according There was little doubt here about Lin said he would immediately re-
volved and it potentially takes just a palpable sense of frustration here. to Kermode. The amount is likely to the basic premise of the BuzzFeed port any attempt to interfere in one
one to determine the outcome. In “I would love to hear names,” increase now: Federer said he hoped News/BBC report that match fixing of his matches. But he understands
2008, after evidence emerged of Roger Federer said Monday. “Then at the sport would allocate more money does take place. why players in the past have been
match fixing, governing bodies of the least it’s concrete stuff and you can to the investigative unit. There are no mobsters in cheap tempted and made bad choices.
sport created the Tennis Integrity actually debate about it. Was it the But he added, “It doesn’t matter suits working the lobbies of player “You’re making a couple of hun-
Unit. Since then, the unit has notched player? Was it the support team? Was how much money you pump into the hotels in Melbourne, Paris, London dred bucks, if that, at a tournament,”
18 convictions, resulting in bans for it a doubles player, a singles player? system, there’s always going to be and New York, fixing the outcome of Lin said. “If someone offers you 10
life for five players and one umpire. Which Slam?” people approaching players, or peo- Grand Slam finals. grand to just sit there, it doesn’t
Nigel Willerton, director of the The sport has invested $14 million ple, any sport.” The wrongdoing allegedly occurs sound too bad.”

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