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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Put Your Data
Plan on a Diet
PERSONAL JOURNAL | D1
DJIA 16153.54 g 295.64 1.8%
What’s
News
Business & Finance
ahoo signaled a possi-
Y ble sale of its Web prop-
erties, saying it would explore
strategic alternatives and cut
about 15% of its workforce. A1
 China National Chemical
is nearing a $43 billion deal
for Syngenta, marking one
of China’s most ambitious
overseas takeover efforts. A1
 The Dow slid 295.64
points and U.S. oil futures
fell sharply as a global re-
treat from risk intensified. C1
 Exxon posted its weakest
annual results in over a de-
cade and BP had a $5.2 bil-
lion loss, hit by oil’s slump. B1
 The U.S. and EU reached
a deal on a data-transfer
policy after the U.S. agreed
to privacy assurances. B1
 Chipotle said quarterly
net fell 44%, as the chain
moves to revive its fortunes
after E. coli outbreaks. B1
 Amazon plans to open
as many as 400 bookstores,
the CEO of mall operator
General Growth said. B1
 Valeant and Turing
boosted prices of newly ac-
quired drugs to meet preset
profit targets, congressio-
nal investigators wrote. B4
 Starboard Value has
taken a 6.7% stake in Mar-
vell, a beleaguered semi-
conductor company. B3
 UBS said its wealth-man-
agement unit saw $3.3 billion
in outflows last quarter and
issued a gloomy forecast. C2
World-Wide
 Clinton’s razor-thin win
over Sanders in Iowa is
magnifying an ideological
battle among Democrats.
Trump, meanwhile, faces
new challenges after his
second-place finish to Cruz
and Rubio’s rise. A1, A4-5
 The EU outlined a possi-
ble deal on U.K. Prime Min-
ister Cameron’s demands
for a changed British rela-
tionship with the bloc. A6
 An Islamist rebel leader
said he would accept a polit-
ical solution to end the Syria
war, as the U.N. struggled to
get negotiations going. A6
 Defense chief Carter said
the U.S. would direct more
funds to tackle challenges
from Russia and China, as well
as the battle against ISIS. A3
 A Zika case in Texas was
attributed to sexual contact.
Drug firms are starting early-
stage vaccine research. A3, B3
 Obama and Ryan both
favor expanding the earned
income tax credit to in-
clude childless workers. A2
 A GOP lawmaker plans to
unveil legislation to dramati-
cally reshape the nation’s air-
traffic-control network. A3
 The White House de-
nounced North Korea’s plan
to launch a satellite, saying it
would be a provocation. A12
 The FBI has joined a
probe into the water con-
tamination in Flint, Mich. A2
CONTENTS
Arts in Review...... D5
Business News.. B1-6
Crossword................. B6
Global Finance........ C3
Heard on Street. C10
Home & Digital D2-3
s Copyright 2016 Dow Jones &
Company. All Rights Reserved
Happy Aftershocks
From the Caucuses
OPINION | A10
* * * * * * WEDNESDAY, FEBRUARY 3, 2016 ~ VOL. CCLXVII NO. 27 WSJ.com HHHH $3.00
NASDAQ 4516.95 g 2.2% STOXX 600 334.59 g 2.1% 10-YR. TREAS. À 30/32 , yield 1.864% OIL $29.88 g $1.74 GOLD $1,127.30 g $0.60 EURO $1.0920 YEN 119.97
IOWA VOTE
The Battleground
The Battleground Shifts Shifts
Iowa's voting pool looks much different than those in states that
Democrats
Battle Over
come next in the presidential nominating process. Republican
caucus winner Sen. Ted Cruz and Sen. Bernie Sanders, who nearly
won among Democrats, have a challenging road ahead.
Party’s Vision
CLINTON 49.9% DEMOCRATS SHARE OF LIBERALS
Iowa is more liberal 68%
IOWA
than states that vote
soon, reducing
Mr. Sanders's
NEW HAMPSHIRE 56
advantage with SOUTH CAROLINA 44
that group. BY LAURA MECKLER Then she’s not a progressive.”
SUPER TUESDAY AVG. 45 For her part, Mrs. Clinton fre-
Hillary Clinton’s razor-thin quently describes herself as a
win over Sen. Bernie Sanders in “progressive who gets things
SANDERS 49.6% NONWHITE VOTERS Iowa is magnifying a battle done.”
Iowa has a relatively 9% among Democrats over whether On issue after issue, Mr.
low number of they should emphasize idealism Sanders sees a more robust role
non-white voters. But 5 or pragmatism. for government than Mrs. Clin-
more racially diverse As the Democratic presiden- ton does, and he calls for signifi-
electorates in future 57 tial race moved on to New cant new taxes and programs to
states could ultimately Hampshire on Tuesday, both address what he considers un-
benefit Hillary Clinton. 33 candidates signaled that they met needs. Enacting his agenda,
would press their cases in the he says, will require a “political
ideological clash over the direc- revolution’’ in which Americans
CRUZ 27.6% REPUBLICANS EVANGELICAL CHRISTIANS tion of the party. demand change so loudly that
Evangelical Christians IOWA 64% In Keene, N.H., on Tuesday, Congress cannot ignore them.
in Iowa backed Mr. Mr. Sanders was asked In Mrs. Clinton’s view, a more
Cruz, but he may need N. H. 22 whether Mrs. Clinton is a pro- targeted and in some cases more
to improve his showing gressive. “Some days,” he re- Please see DIVIDE page A5
among non-evangelicals SOUTH CAROLINA 65 plied. “Except when she an-
to win future states. SUPER TUESDAY AVG. nounces she’s a moderate.  Election 2016......................... A4-5
55
New Risks for Trump
TRUMP 24.3% CONSERVATIVES
Few states top Iowa’s
85%
After Defeat in Iowa
share of ‘very
conservative’ voters. 53
More-centrist states
could prove tougher 68
for Mr. Cruz.
64
MILFORD, N. H.—Beaten in ture from recent Iowa GOP
Note: Exit polls not available for all Super Tuesday states Iowa but unbowed, Republi- winners, who lacked the fi-
Sources: National Election Pool exit polls conducted by Edison Research
RUBIO 23.1% THE WALL STREET JOURNAL.
can Donald Trump re- nancial resources to build on
(Iowa 2016); 2008/12 exit polls via CNN and NBC (others)
turned Tuesday to the state their victories and win the
that has served as his cam- nomination.
The businessman also has
By Beth Reinhard, seen his own stature dimin-
Janet Hook ished after failing to meet ex-
and Heather Haddon pectations in Iowa, where he
led in most polls in the days
JEFF STORJOHANN/ASSOCIATED PRESS
paign home base facing a new before Monday’s balloting.
set of challenges in what is And a new threat is emerging
likely to be a must-win pri- with the rise of Marco Rubio
mary. in the candidate pack. The
Iowa winner Ted Cruz ar- Florida senator finished third
rived in New Hampshire in Iowa, just one percentage
Tuesday with momentum, point behind Mr. Trump.
money and a tested voter- Mr. Trump must now de-
turnout machine—one strong cide whether he is willing to
enough to force Mr. Trump invest more of his own money
Republican party volunteers counting votes during a caucus in Carroll, Iowa, on Monday. into a second-place caucus into his campaign. He is cur-
finish. That is a sharp depar- Please see GOP page A4
China Yahoo Mulls Breakup as Losses Grow
Bids for BY DOUGLAS MACMILLAN
AND DANA MATTIOLI
Tumblr blogging site.
Yahoo’s move to mull its
expressed interest in purchas-
ing parts or all of the business,
portion of its roughly $27 bil-
lion market value to its stakes
Industrial Yahoo Inc. has effectively
hung a for-sale sign on its Web
options, confirming a report
earlier Tuesday by The Wall
Street Journal, sets the stage
people familiar with the mat-
ter said.
Yahoo’s next step may be to
in Alibaba Group Holding Ltd.
and Yahoo Japan. Brian Wi-
eser, an analyst at Pivotal Re-
Might properties, signaling the possi-
ble end of a 20-year run by an
Internet icon.
for a possible bidding war be-
tween a wide range of poten-
tial buyers. About 1 billion
initiate a formal sale process,
which entails setting up a vir-
tual data room detailing the
search LLC, estimates Yahoo’s
core business, excluding the
Asian assets and its cash, is
The company on Tuesday people a month travel collec- company’s business metrics, worth around $3.4 billion.
China is pursuing one of its said it would explore “strate- tively to Yahoo’s home page, and proactively reaching out A sale process would also
most ambitious overseas take- gic alternatives” as part of a email and other sites, making to the most likely potential likely mark the end of Chief
over attempts yet, as China restructuring that will elimi- them an attractive asset to buyers. Or the board could Executive Marissa Mayer’s at-
National Chemical Corp. nears nate roughly 15% of its work- media conglomerates such as choose to wait until a suitor tempt to turn around Yahoo.
an agreement to buy Swiss force. The announcement came Wall Street Journal owner approaches them with an offer, Costs have risen, while reve-
alongside a dismal fourth- News Corp and IAC/Inter- at which point it would weigh nue has shrunk in the 3½
By Rick Carew, quarter report card in which ActiveCorp, telecom giants in- that against any counteroffers. years since she took the reins.
Shayndi Raice Yahoo took a $4.5 billion cluding Verizon Communica- Estimating the value of Ya- Fourth-quarter revenue ex-
and Eyk Henning charge to write down the value tions Inc. and private-equity hoo’s business is difficult, be- cluding commissions paid to
of businesses including its firm TPG—all of which have cause investors ascribe a large Please see YAHOO page A8
pesticide and seed giant Syn-
genta AG for roughly $43 bil-
lion, according to people famil-
iar with the matter.
In Myanmar, Elected Officials Global Retreat From Risk
These people said an agree-
ment between the two compa-
Head to the Dorms Performance this year Yield on the 10-year
Treasury note
nies could be announced as i i i
soon as Wednesday, but also 0% 2.4%
cautioned that talks could still New members of parliament live in
fall apart. If an agreement is Dow
reached, it would be just the modest rooms; ‘life as a college student’ 7.3%
start of what could be a
fraught process gaining gov-
ernment and regulatory ap- BY SHIBANI MAHTANI try’s fresh intake of lawmakers –10 2.2
proval around the world, in- after the first democratic elec-
cluding in the U.S., the home of NAYPYITAW, Myanmar— tions in decades are finding
a sizable portion of Syngenta’s Myanmar’s remote capital was that their accommodations
seed and crop-spray business. built in part as a aren’t quite as re-
In the Markets....... C4 A deal would also mark a tribute to the splendent.
Opinion................. A9-11
Property Report C6-8
fresh height for China’s deal- country’s ancient “Life as a mem- –20 2.0
Sports.......................... D6 making ambitions as its gov- royal rulers. The ber of parliament
U.S. News.............. A2,3 ernment seeks to steer a slow- name Naypyitaw is just like life as a Nymex
Weather..................... B6 ing economy and build up its means “The Abode college student,”
World News.. A6,7,12
agricultural capabilities to feed of Kings,” and it said Khin Maung
crude oil
a more affluent populace. comes with an Soe, a new mem- 20% 1.864%
> The global agricultural and 840-acre parlia- ber of parliament, –30 1.8
chemicals industries have been ment complex and NLD member sitting by a dormi- Jan. Feb. Jan. Feb.
reshaped in recent months by 20-lane highways tory bed lined
Sources: Ryan ALM (Treasurys); WSJ Market Data Group
deals, initiated by U.S. seed gi- snaking past a presidential pal- with a thin foam mattress cov-
ant Monsanto Co.’s unsuccess- ace. ered with printed fabric from ON EDGE: Investors around the world sold stocks, driving down
ful $46 billion takeover of Syn- But as the new parliament the 2006 Disney movie “Cars.” the Dow industrials and other indexes, and purchased government
Please see BID page A8 convened on Monday, the coun- Please see DORMS page A8 bonds, eroding yields, while U.S. crude futures dropped sharply. C1
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Wednesday, February 3, 2016 * ***** THE WALL STREET JOURNAL.

U.S. NEWS
Obama, Ryan Eye Tax-Policy Compromise
BY RICHARD RUBIN their agreement on this idea, workers between ages 21 and 24 2016, in its current form, the en-
AND ERIC MORATH which would double the credit newly eligible for the break. Mr. Extra Credit tire credit is projected to cost
to more than $1,000 and make Obama also supports adding President Barack Obama and House Speaker Paul Ryan are the government $73.3 billion,
President Barack Obama and workers as young as 21 eligible. workers aged 65 and 66. contemplating plans to expand the earned income tax credit to give a according to the congressional
House Speaker Paul Ryan have “There’s a misunderstanding The White House said its pro- greater benefit to workers without children. Joint Committee on Taxation.
the rare makings of a tax-policy that…childless adults don’t de- posal would benefit 13.2 million To pay for the expansion, Mr.
compromise: Both want to ex- serve the same opportunity,” low-income Americans, similar Earned income tax credit Average earned income tax Obama wants to rely on higher
pand a poverty-fighting tool said Sen. Cory Booker (D., N.J.). to the number that would bene- recipients credit per recipient taxes on private-equity manag-
some analysts say could draw “There is a bipartisan pathway fit from raising the federal mini- 30 million 27.5 million $3.0 thousand $2,425 ers and a change that would
millions of Americans into the forward on this.” mum wage to $10.10 an hour, ac- make it harder for some profes-
workforce. The proposal occupies a pol- cording to the Congressional 25 2.5 In 2014 dollars sionals to avoid payroll taxes.
Having formally met Tuesday icy sweet spot. Democrats see Budget Office. Mr. Ryan’s plan would eliminate
for the first time since Mr. Ryan billions of dollars of aid going to The American Action Forum, 20 2.0 other programs, including ones
became speaker, the two hold low-income households. Repub- a right-leaning think tank, esti- that provide fresh fruits and
widely divergent views on taxes, licans see a policy that encour- mates that doubling the maxi- 15 1.5 vegetables to low-income fami-
spending and government’s role ages work rather than depen- mum EITC available to childless lies and promote U.S. agricul-
in American life. But both sup- dence. workers would increase employ- 10 1.0 tural products overseas.
port a plan to increase the Still, it won’t be easy. Orrin ment by 8.3 million. That is an A spokeswoman for Mr. Ryan
earned income tax credit, Hatch (R., Utah), chairman of aggressive estimate based on an 5 0.5 deferred comment to the Ways
or EITC, to include childless the Senate Finance Committee, earlier expansion in the 1990s; and Means Committee. The
workers. said he opposes the expansion the gain would be larger than all 0 0 committee’s chairman, Rep.
To succeed, the president and as unnecessary. “EITC ought to the jobs added to the economy Kevin Brady (R., Texas) wel-
1999 2000 2010 1999 2000 2010
the Wisconsin Republican will be limited to families and chil- over the past three years. comes discussion, said his
have to overcome election-year dren, he said, adding that many Such an increase in the num- Source: IRS via Tax Policy Center THE WALL STREET JOURNAL. spokeswoman. Mr. Brady, she
inertia and disputes about how other programs exist to assist ber of U.S. workers would bring said, would want to pair any ex-
to cover the estimated $65 bil- adults who don’t have children. the labor-force participation The EITC is structured to en- that can be more attractive than pansion with efforts to prevent
lion cost over the next decade. Messrs. Obama and Ryan rate to near 66%, where the courage work and help parents, government benefits. Then, as fraud within the program.
Both men see the potential both support doubling the maxi- measure of slack stood just be- acting as a wage subsidy for the income rises further, the credit Messrs. Obama and Ryan will
for a deal. The only time Mr. mum credit for childless work- fore the recession began in lowest-income workers because phases out. The EITC is refund- have to move quickly. Congress
Obama mentioned Mr. Ryan by ers, now $506 and far below the 2007. The December rate, 62.6%, it increases with income—to a able, which means taxpayers re- has a light schedule and little
name in last month’s State of peak benefit available to par- is near the lowest level since the point. The credit creates a com- ceive it even if the benefit ex- appetite for controversy this
the Union address was to note ents. Both men would make 1970s. bination of wages and tax breaks ceeds their income tax bills. In year.

FBI Probes Flint’s Water System Chicago Schools Race

BY KRIS MAHER
AND MELISSA KORN
To Avert Cash Crunch
BY MARK PETERS District officials have
The Federal Bureau of Inves- AND AARON KURILOFF played down the delay in the
tigation is part of a broad crim- $875 million deal.
inal investigation into the lead Chicago’s public-school offi- Still, the challenges have
contamination in Flint, Mich., cials unveiled a new round of mounted in recent days. The
that has left the city of nearly spending cuts Tuesday as they Chicago Teachers Union on
100,000 without safe drinking struggle to borrow from inves- Monday rejected a contract of-
water, the agency said Tuesday. tors increasingly wary of the fer and continues to threaten
The FBI, the U.S. Postal In- finances of one of the nation’s to strike again after walking
spection Service and two divi- largest districts. out in 2012. School officials
TIM GALLOWAY FOR THE WALL STREET JOURNAL

sions of the Environmental Pro- The district will lay off staff also face continued calls by
tection Agency are among the and require larger pension con- Gov. Bruce Rauner and Repub-
agencies working on the joint tribution from teachers in a bid lican lawmakers for a state
investigation with the U.S. at- to shed $250 million in annual takeover of the schools and
torney for the Eastern District costs in the coming weeks. The giving the district the option
of Michigan, according to Gina move comes as the school sys- to file for bankruptcy.
Balaya, a spokeswoman with tem seeks to close a bond deal “When you look at the
the U.S. attorney’s office. for a crucial infusion of cash numbers for the Chicago pub-
“Our role in all of this is to that has been stalled in recent lic schools, bankruptcy has to
determine if there were federal days. Officials expect to return be an option that’s on the ta-
violations of law,” said Jill to the bond market on Wednes- ble. They are so broken,” Mr.
Washburn, a spokeswoman for day after delaying the debt of- Rauner said Tuesday
the FBI in Detroit. Flint, Mich., residents have relied on bottled water since lead contaminated the water system. fering last week. Developments including
In recent weeks, the number “I think we’re sending a talk of allowing a bankruptcy
of state and federal probes has emergency manager, Darnell roughly 18 months later, in Oc- Gov. Snyder also appointed a very strong signal here that filing have left bond investors
multiplied as the severity of the Earley, said he would resign his tober 2015, not to drink the wa- task force to investigate. The we are going to right the fiscal with a lot of uncertainty, said
water crisis has become clearer, position as emergency manager ter from their taps. group’s preliminary findings in ship,” said Forrest Claypool, Daniel Solender, director of
as state officials, with the aid of of Detroit Public Schools. Mr. Mr. Earley has previously December said primary blame chief executive of the district. municipal-bond management
the National Guard and envi- Earley was appointed by Gov. said that while the switch to us- for the contamination rested Analysts and investors said at Lord Abbett & Co., which
ronmental experts, focus on Rick Snyder to the post in Janu- ing the Flint River occurred with the state Department of Chicago officials in the past oversees about $17 billion in
getting bottled water to resi- ary 2015. while he was emergency man- Environmental Quality for fail- week have been trying to ease state- and local-government
dents and repairing the city’s Mr. Earley had recently come ager, the decision to do so had ing to require the anti-corro- concerns of investors by debt. “It was tough going in,
damaged water infrastructure. under fire for both his role in been made earlier with input sion chemicals be added to the shrinking the size of the bond and with that stuff going on,
On Wednesday, the U.S. overseeing the troubled school from local elected officials. water. sale, adding new protections it’s hard to see a clear path to
House Oversight Committee is system and serving as emer- U.S. Attorney Barbara Mc- Mr. Earley’s departure from for buyers and offering an in- how it works,” he said.
scheduled to hold its first hear- gency manager of Flint when Quade announced in early Janu- the Detroit schools leaves the terest rate rarely seen in re- District officials dismissed
ing on the situation, including the city began using water from ary that she was assisting the district in the hands of another cent years in the municipal- the proposals of Mr. Rauner,
the EPA’s role in ensuring safe the Flint River in April 2014. EPA in investigating the con- state appointee. It marks a par- bond market. Interest rates which would need to win pas-
drinking water in the city. State environmental regula- tamination. Later that month, tial victory for the teachers, being discussed are around sage in a legislature that is
The water crisis has already tors failed to require that the Michigan Attorney General Bill whose union filed a lawsuit last 7.75%—about a 5-percentage- controlled by Democrats. And
led to the resignations of city, city treat the river water with Schuette appointed a former Thursday demanding that the point premium over what while disappointed the teach-
state and federal officials who chemicals to prevent the corro- Wayne County assistant prose- city fix school buildings, calling states and cities with top- ers union rejected the pro-
had oversight roles of the city’s sion of pipes, which caused lead cutor and a former Detroit FBI for Mr. Earley’s removal and rated credit pay and similar to posed contract, Mr. Claypool
water system. to leach into the drinking water. director to head an investiga- asking for a return to local con- what fiscally troubled Puerto said they will be returning to
On Tuesday, Flint’s former Flint residents were told tion by his office. trol of the system. Rico has paid in recent years. the bargaining table.

CORRECTIONS 
AMPLIFICATIONS U.S.
Watch
Black Hawk County is in
northeastern Iowa and Mar-
PIROSCHKA VAN DE WOUW/EUROPEAN PRESSPHOTO AGENCY

shall County is in central Iowa.

Text in a graphic with a Page
One article Monday on Iowa MISSOURI
voter turnout incorrectly im-
plied that Black Hawk County
Museum Discovers
is in northwestern Iowa and Painting Is a Bosch
Marshall County is in southern A Midwestern art museum
Iowa. The map itself posi- found out that one of its paint-
tioned the counties correctly. ings that had been recently kept
Additionally, residents of ur- in storage is an authentic origi-
ban Iowa are more likely than nal by early Dutch painter Hier-
the average Iowan to be col- onymus Bosch.
lege graduates. The text in the Researchers from the Neth-
graphic incorrectly described erlands told the Nelson-Atkins
them as less likely to be col- Museum of Art in Kansas City,
lege graduates. Mo., that the painting is one of
only about two dozen original ‘The Temptation of St. Anthony’ by Hieronymus Bosch
Readers can alert The Wall Street Bosch works in the world.
Journal to any errors in news articles “We are delighted with this gazagoitia, the museum’s direc- on the state’s urban areas into
by emailing wsjcontact@wsj.com or
by calling 888-410-2667. major discovery,“ said Julián Zu- tor, adding that the art commu- the fall, after determining that
nity will ”see this elevated abundant snow and rain this
THE WALL STREET JOURNAL (USPS 664-880) masterpiece through new eyes.” winter is still insufficient to off-
(Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) Dutch scholars from Den Bo- set a historic western drought.
(Western Edition ISSN 0193-2241) sch, the artist’s hometown, ex- The move by the State Wa-
Editorial and publication headquarters: 1211 Avenue of the Americas, amined the 15-by-10-inch panel, ter Resources Control Board
New York, N.Y. 10036 “The Temptation of St. An- came after electronic readings
Published daily except Sundays and general legal holidays. thony,” with infrared cameras to by the California Department of
Periodicals postage paid at New York, N.Y., and other mailing offices. determine the painting has ele- Water Resources showed a
POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., ments consistent with Bosch’s mountain snowpack in the Si-
Chicopee, MA 01020. style. They announced the au- erra Nevada mountains of 20.4
All Advertising published in The Wall Street Journal is subject to the applicable rate card,
thentication Monday. Bosch, inches, or 114% of average.
copies of which are available from the Advertising Services Department, Dow Jones &
Co. Inc., 1155 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the who lived from around 1450 to A manual survey con-
right not to accept an advertiser’s order. Only publication of an advertisement shall 1516, likely painted the panel af- ducted Tuesday by the agency
constitute final acceptance of the advertiser’s order. ter the turn of the century. in the northern Sierra, the well-
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com —Ben Kesling spring for much of the state’s
water supplies, showed a
NEED ASSISTANCE WITH YOUR SUBSCRIPTION? CALIFORNIA higher reading of 25.4 inches,
CONTACT CUSTOMER SUPPORT. or 130% of average, but offi-
By web: customercenter.wsj.com
State Extends Curbs cials had hoped for an even
By email: wsjsupport@wsj.com On Water Use higher figure before lifting wa-
By phone: 1-800-JOURNAL (1-800-568-7625) California officials late Tues- ter cutbacks on cities.
Or by live chat at wsj.com/livechat
day extended water restrictions —Jim Carlton
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Pentagon
Lays Out
Budget
Priorities
BY GORDON LUBOLD
AND DOUG CAMERON
WASHINGTON—Defense
Secretary Ash Carter on Tues-
day said the U.S. would direct
more funds to tackle the chal-
lenges posed by Russia and
China as well as the continuing
battle against Islamic State.
The $583 billion budget re-
quest for fiscal 2017, to be for-
mally unveiled next week, also
increases funding for cyberse-
curity and high-tech initiatives
such as microdrones launched
from jet fighters and self-driv-
ing boats that could be used in
the South China Sea.
The proposed spending,
which is level with what Con-
gress approved for fiscal 2016,
sets up months of horse-trading
with lawmakers, likely influ-
enced by how strongly defense
emerges as an issue in the na-
tional elections.
“This budget marks a major
inflection point for the Depart-
ment of Defense,” Mr. Carter
said at an event hosted by the
Economic Club of Washington,
noting in what will likely be his
final budget that the Pentagon
was taking “the long view.”
Defense officials and indus-
try executives have become in-
creasingly concerned over the
past two years that U.S. mili-
tary superiority is eroding as
Russia and China develop more
advanced weapons. Mr. Carter
has led efforts to reverse the
decline in military research
spending and has sought to tap
tech leaders to aid the effort to
keep the U.S. ahead.
While additional details will
emerge when the budget is for-
mally presented on Feb. 9, some
analysts viewed it as less of a
tipping point.
“Some of the data points
that were discussed…didn’t
scream growth,” said Byron
Callan, a defense analyst at
Capital Alpha Partners LLC.
The proposed budget in-
cludes $524 billion in base
spending and a further $59 bil-
lion for the so-called war-fight-
ing fund, which lawmakers have
used to boost other projects.
Mr. Carter said the Pentagon
wants to double the budget to
fight Islamic State to $7.5 bil-
lion. That money would help
$7.5 billion
Proposed annual spending
to fight Islamic State,
double from previous year
pay for more munitions, and
with stockpiles running low, it
wants to spend $1.8 billion to
buy 45,000 bombs and rockets.
The longer-term goal of
countering Russian aggression
involves quadrupling to $3.4
billion the budget of the Euro-
pean Reassurance Initiative,
which covers training and gear
for the U.S. and its European al-
lies. “That’ll fund a lot of
things—more rotational U.S.
forces in Europe, more training
and exercises with our allies,
more pre-positioned war-fight-
ing gear and infrastructure im-
provements to support it,” Mr.
Carter said.
Congress has in the past
been more reluctant to expand
such programs. “I could see
that being raided for other pri-
orities,” said Doug Berenson,
managing director of consultant
Avascent.
The proposed budget in-
cludes a bump in spending on
new submarines and other un-
dersea technology, an area
where officials believe the U.S.
has a comparative advantage.
However, the Pentagon is
concerned Russia and China are
becoming more adept in cyber-
space, as well as deploying
more radar-evading jets and so-
phisticated long-range missiles.
The Pentagon plans to tackle
rising threats at home and
overseas by boosting the cyber
budget to $7 billion from $5.5
billion and maintain that level
over the next five years.
Mr. Carter offered few de-
tails on potential cuts to pay for
some of his proposals. Some
service chiefs have warned that
some big programs may have to
be curtailed to fund the chang-
ing priorities. Two-thirds of the
Pentagon budget goes to pay,
benefits and operations, with
around a third directed at buy-
ing weapons and services.
* * * * * *
FAA Overhaul Bill Stirs Uproar
Some industry groups,
Democrats oppose
plan to reshape air-
traffic-control system
BY ANDY PASZTOR
AND SUSAN CAREY
The House Transportation
and Infrastructure Commit-
tee’s Republican chairman on
Wednesday plans to unveil leg-
islation to dramatically re-
shape the nation’s air-traffic-
control network. But growing
Democratic and industry oppo-
sition threatens to make the
bill another victim of partisan
gridlock.
Part of a Federal Aviation
Administration reauthoriza-
A Republican bill would create a nonprofit corporation to take over the FAA’s air-traffic-control network, funded by user fees.
Zika Case Is Attributed to Sexual Contact
BY KAT LONG
AND BETSY MCKAY
A person in Texas has con-
tracted the Zika virus through
sexual contact, according to
the Centers for Disease Control
and Prevention.
The individual was a sexual
partner of another individual
who had recently traveled to
an area where Zika is circulat-
ing and tested positive for the
virus after returning home, the
agency said.
The CDC said there was no
risk to a developing fetus in
this case.
Texas health officials said
Science Weighs In on Bedbugs
BY ROBERT LEE HOTZ
Researchers for the first
time have explored the entire
genome of the bloodsucking
bedbug, locating dozens of
genes that may stiffen its re-
sistance to pesticides, thicken
its protective skin and help it
thrive despite so many frantic
efforts to eradicate it.
In findings announced
jointly Tuesday, two indepen-
dent research teams identi-
fied 36,985 genes responsible
for the complicated lifestyle
of a pinhead-sized pest that
is the bane of households and
hotel guests. Among them,
they found clusters of genes
associated with resistance to
the pyrethroid compounds
commonly used to combat in-
festations.
“That’s a big deal,” said
George Amato, director of the
American Museum of Natural
History’s Sackler Institute for
Comparative Genomics, one
of 108 scientists involved in
the effort. “Those will now
become targets for control-
ling and eradicating bed-
bugs.”
The two research groups—
one led by scientists at the
museum and Weill Cornell
Medical College, both in New
York, and the other by re-
searchers at the University of
Cincinnati and the Baylor
College of Medicine in Hous-
ton—published their work
Tuesday in Nature Communi-
cations.
U.S. NEWS
tion measure, the proposal sure, according to the official,
calls for creating a standalone,
nonprofit corporation funded
by user fees that would take
effectively exempts two cate-
gories of aircraft from user
fees: much of business aviation
over the agency’s responsibili-
ties for managing air-traffic
operations and oversee mod-
and all of general aviation, or
small planes primarily flown
by private pilots. Those groups
ernization of the system. have been most outspoken in
According to one industry objecting to the private corpo-
official who has seen the lan- ration proposal.
guage, it envisions an 11-mem- Since late 2014, Pennsylva-
ber governing board—with nia Rep. Bill Shuster has used
seats assigned to labor, airline his position as head of the
and private-aviation inter- House panel to solicit backing
ests—and a three-year phase- from lawmakers and business
in period. groups for such fundamental
While most provisions are changes to the traffic-control
similar to previous versions of system’s funding and struc-
the bill circulated as early as ture. Yet despite efforts to gar-
last summer, this official said ner broad support, and brief-
one new funding wrinkle is ings for interest groups,
likely to raise questions in opposition seems to be build-
some airline circles. The mea- ing on and off Capitol Hill.
the patient is a resident of Dal- has confirmed 31 travel-associ-
las County but declined to re- ated cases in 11 states and the
lease further details. District of Columbia since
“The timing of the travel, 2015.
the mosquito activity at that Zika is usually spread
time of year, and the timing of through bites from infected
the infection all point to sexual Aedes aegypti mosquitoes. In
transmission, and not a mos- otherwise healthy adults,
quito bite,” said Chris Van De- symptoms include fever, rash,
usen, spokesman for the Texas muscle and joint pain and red-
Department of State Health dened eyes. Health officials in
Services. Brazil have linked Zika to a
“We’re continuing to evalu- spike in the number of babies
ate the information with Dallas born with unusually small
County and the CDC,” Mr. Van heads and brains, known as
Deusen said. microcephaly, as well as sev-
There is no evidence of eral cases of Guillain-Barre
Zika-carrying mosquitoes in syndrome, a disorder that
Texas, officials said. The CDC causes temporary paralysis.
team of researchers from
New Mexico State University
and Virginia Polytechnic In-
stitute reported last week
ALEX BRANDON/ASSOCIATED PRESS
that newer pesticides based
on neonicotinoids are already
losing their effectiveness
against bedbugs because the
insects have built up a toler-
ance to them.
In the new genome studies,
the researchers found more
than just bedbug DNA. The
Bedbugs have genes that protect researchers also found ge-
them from certain pesticides. netic traces of 400 different
kinds of bacteria that form a
Taken together, the find- key part of the creature’s life-
ings are testament to the support system by providing
powerful evolutionary biology nutrients missing from hu-
of bed bugs. man blood. One of them, a
The common bedbug, for- parasite called Wolbachia,
mally called Cimex lectular- provides its bedbug host with
ius, has infested humankind a “cocktail” of B vitamins es-
for so many centuries that to- sential for reproduction and
day it survives solely on hu- development, the researchers
man blood. Almost eradicated said.
by DDT and other chemicals The scientists also used
just after World War II, bed- their genomic data to analyze
bugs today can withstand lev- how the insects vary across
els of pesticides a thousand New York City, drawing on
times greater than the lethal DNA samples collected in ev-
dose of a few decades ago, ery borough and at each of
according to laboratory tests the city’s more than 460 sub-
in the U.S., Africa and Eu- way stations. Bedbugs in
rope. They have rebounded Brooklyn, it seems, are
world-wide. slightly different genetically
“They all seem to find a than bedbugs in Queens. In
way to become resistant,” fact, every district appears to
said insect toxicologist John have a signature breed.
Clark at the University of “They represent distinct
Massachusetts in Amherst, populations that, to some de-
who wasn’t involved in the gree, reflect the way they live
genome project. and whom they are biting,”
Underscoring the speed of said Weill Cornell geneticist
adaptation, an independent Christopher Mason.
Wednesday, February 3, 2016 | A3
Mirroring proposals cham- the bill and offer amendments
pioned by the largest airline
trade association—and re-
cently backed by a handful of
for even-broader changes in-
tended to also shift many
other parts of the FAA to a
former senior government of-
ficials who had responsibility
for air-traffic operations—the
federally chartered corporate
entity.
Last week, veteran mem-
bill, proponents contend, rep- bers of the Senate Appropria-
resents the only way to end tions Committee sought to
bureaucratic delays and roller- head off momentum for Rep.
coaster budgets impeding the Shuster’s bill. In a strongly
system’s modernization. worded letter, two Democrats
Instead of relying on annual and two Republicans said “it
congressional appropriations, does not make sense to break
user fees established by the apart the FAA, an essential
proposed board would pay for part of our success in avia-
operations and back bonds tion.” Three days later, four
that could be sold to fund fa- senior members of the House
cility upgrades. Appropriations Committee
Rep. Peter DeFazio of Ore- weighed in with concerns
gon, the panel’s senior Demo- about alleged lack of public ac-
crat, has indicated he intends countability.
to oppose major portions of Also recently, a new group,
Americans Against Air Traffic
Privatization, launched a fight
against the idea of hiving off
air-traffic control from the
government. The organization
is a coalition of advocacy
groups including Public Citi-
zen and Progressive Congress.
Meanwhile, FAA Adminis-
trator Michael Huerta, who
has refused to back the GOP
House measure, indicated he
and White House officials re-
main skeptical about how the
proposed funding would work.
If lawmakers fail to agree
on a package by the March 30
deadline when existing FAA
legislation expires, congressio-
nal leaders and the White
House are likely to revert to
another short-term extension.
The last extension was passed
in the fall.
Airlines for America, the
trade group representing most
major U.S. airlines, strongly
favors Rep. Shuster’s plan, ar-
guing the proposed structure
could help address the FAA’s
JULIO CORTEZ/ASSOCIATED PRESS
funding woes without ceding
control of the new entity to
“special interests,” undermin-
ing private aircraft owners or
drastically raising costs for
airspace users. The group also
points out that many foreign
nations already have taken
this step, with good outcomes.
Sexual transmission of Zika a need for more study and
has been documented before in guidance for travelers about
at least two cases but is con- the risks of Zika transmission.
sidered to be extremely rare. The World Health Organiza-
Scientists found Zika virus in tion declared Zika an interna-
the semen of a patient in Ta- tional public health emergency
hiti who had been exposed on Monday because of con-
during an outbreak in French cerns about its potential link
Polynesia in 2013. to microcephaly in infants.
In 2008, an American scien- The CDC said it would “is-
tist contracted Zika while sue guidance in the coming
working in Senegal. His wife in days on prevention of sexual
Colorado, who didn’t travel transmission of Zika virus,
with him, was infected after he with a focus on the male sex-
returned home in what ap- ual partners of women who
peared to be a case of sexual are or who may be pregnant.”
transmission.
Experts said the Texas case,  Drugmakers set their sights
like the two before it, point to on Zika vaccine..........................B3.
©T&CO. 2016
TIFFANY ENGAGEMENT
800 843 3269 | TIFFANY.COM
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A4 | Wednesday, February 3, 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.

Rubio Campaign Sees Opening After Iowa

Florida senator’s Jeb Bush are waging last-
chance bids to remain viable—
broad appeal could be and that means knocking Mr.
mixed blessing as Rubio down a notch or two.
Since his days in Florida leg-
voters seek outsiders islature, Mr. Rubio has awk-
wardly straddled the line be-
BY PATRICK O’CONNOR tween conservatives and more-
AND REID J. EPSTEIN centrist Republicans.
“That’s been Marco Rubio’s
EXETER, N.H.—Sen. Marco problem the entire cam-
Rubio’s stronger-than-expected paign—he hasn’t figured out
showing in Iowa may push him who he wants to be in this
to accept a label he has so far race,” said Mike Dennehy, an
shunned—the establishment fa- unaffiliated Republican strate-
vorite. gist in New Hampshire who
Since announcing his bid last advised Arizona Sen. John

PETE MAROVICH/GETTY IMAGES

spring, the first-term Florida McCain in 2008 when he won
senator has strained to present the GOP nomination and for-
himself to Republican primary mer Texas Gov. Rick Perry last
voters as a political outsider year before he dropped out.
and rock-ribbed conservative, “He wants to be the conserva-
every bit as committed to the tive, and he wants to be the
cause as Ted Cruz, one of his establishment. Like it or not,
top rivals. you can’t be both in this elec-
But in what is shaping up as GOP presidential candidate Sen. Marco Rubio after addressing supporters Monday at a caucus-night party in Des Moines, Iowa. tion.”
a three-way race with the Texas The Rubio camp stepped up
senator and businessman Don- New Hampshire, Mr. Cruz on finish, Mr. Rubio sold himself his highest levels of support candidate outside the party es- its efforts to nudge Messrs.
ald Trump, Mr. Rubio’s primary Tuesday took a shot at Mr. Ru- Tuesday as a candidate who can from Republican caucusgoers tablishment. Christie, Kasich and Bush from
appeal lies in his acceptability bio for his prior support for leg- straddle the establishment and who described themselves as New Hampshire presents a the race. On a conference call
to all segments of the Republi- islation creating a path to citi- activist wings of the party. “We “somewhat conservative,” as tricky challenge for Mr. Rubio. Tuesday morning with top Ru-
can Party, as well as his allure zenship for illegal immigrants. cannot win if we are not to- well as those voters who Nearly half of the Republican bio donors, deputy campaign
as a general-election candidate. New Jersey Gov. Chris Chris- gether,” Mr. Rubio told a packed wanted to nominate a candidate primary voters in the state in manager Rich Beeson made the
That has made him a favorite of tie on Tuesday likened Mr. Ru- town hall in Exeter. “That with the best shot at winning in 2012 described themselves as case to the campaign’s financial
some established elements in bio to “the boy in the bub- doesn’t mean we’re going to November, according to en- “moderate-to-liberal,” while backers that the candidates who
the party, a mixed blessing in ble…who never answers your agree on everything. If I’m our trance polls sponsored by major roughly a third of the electorate finished outside the top three
this year of the outsider. questions, who’s constantly nominee I will bring our party media organizations. was “somewhat conservative,” “have no chance of winning.”
The status ensures he will be scripted and controlled.” and the conservative movement Mr. Cruz, meanwhile, domi- representing a double-digit On the call, Mr. Beeson
attacked both from foes on the For his part, Mr. Rubio is em- together. I will unify us.” nated among those who con- drop from Iowa. warned that the race would get
right, who call him insuffi- phasizing his broader appeal, Conservative Solutions PAC, sider themselves “very conser- Further complicating his much nastier in New Hamp-
ciently conservative and a cap- talking up his ability to unite a super PAC supporting Mr. Ru- vative,” followed by Mr. Trump, path ahead, he faces much shire, with Mr. Christie and oth-
tive of business interests, as the party and connect with vot- bio, sought to amplify that according to the survey. Mr. Ru- stiffer competition for those ers desperate to derail Mr. Ru-
well as from more mainstream ers beyond its conservative message Tuesday, unveiling a bio underperformed among that less-conservative voters in New bio in a state where voters tend
candidates who see him as a base. new ad echoing the candidate’s most conservative segment of Hampshire than he did in Iowa. to back more centrist, business-
threat to their own viability. At his first New Hampshire electability argument. the electorate. He also strug- Mr. Christie, Ohio Gov. John Ka- friendly Republicans. “It’s not
In his post-victory debut in rally after his third-place Iowa In Iowa, Mr. Rubio generated gled with voters looking for a sich and former Florida Gov. going to be pretty,” he said.

Heard on the Stump

GOP POLITICS COUNTS | Max Rust and Randy Yeip

Palin Talks Up Trump

To Sixth-Graders
main stage because of these
pollsters. I want my money
back,” he said on MSNBC. “This
Continued from Page One
rently airing less than $1 mil-
Where They Won
Spotted in Des Moines Inter- is ridiculous. These are the guys lion in television ads this Iowa GOP caucusgoers dealt Donald Trump a setback, lifting Ted Cruz
national Airport on Tuesday: that were telling who should be week aimed at New Hamp- to a win and giving Marco Rubio a strong third-place finish. Here’s
Sarah Palin answering questions in the debate? Please.” shire ahead of next Tuesday’s
from a group of sixth-graders Mr. Graham spent $5.6 million primary, according to media what each candidates’ coalition may mean for coming contests.
from Santa Monica, Calif. in the GOP race before dropping trackers. He also must decide
The former Alaska governor out in December. whether his campaign has
and Republican vice-presidential —Daniel Nasaw enough time and connections KEY: Iowa voter types Counties won by: Cruz Trump Rubio Tie
pick weighed in on the results in the state to create a turn-
from Monday night’s Iowa cau- out operation that can com-
cuses, saying: “It’s exciting when pete with Mr. Cruz and other
it’s that close.” challengers who have been
She also stood behind her en- building get-out-the-vote ma- Sioux City Waterloo Dubuque
dorsement of Donald Trump, chines for months.
saying, “Trump is my favorite “He needs to be more fo-
Ames Cedar Rapids
candidate” because like him, cused in his attacks against Rural conservative More religious,
she’s a different sort of politi- Rubio and Cruz,” said Repub- lower incomes, fewer college graduates Iowa City
cian. She called the meeting the lican consultant Roger Stone, Des Moines
Population centers Less religious, Davenport
“nicest interview I’ve ever had.” a former campaign adviser to Council Bluffs
higher incomes, more college graduates
—Natalie Andrews Mr. Trump who is also advo-
cating for more TV ads. “He
Graham Demands needs to define Rubio and
Populist profile Less religious, lower
incomes, fewer college graduates
Refund Over Polling Cruz as career politicians
Onetime Republican presiden- who just talk a great game, Key to Mr. Cruz's win Monday: he Polling pointed to a Trump coalition Mr. Rubio won just five counties,
tial candidate Sen. Lindsey Gra- and talk more in a positive won most of the rural conservative that was more secular and populist, but they held some of the largest
ham said Tuesday that the qual- way about his economic counties that formed the core of a profile that matches Iowa's vote totals in the state. He scored
ity of opinion polling this
‘The guy who plan.” support for previous evangelical southern tier. But Mr. Cruz edged comfortable victories in more
election cycle was so lousy he does nothing but Mr. Trump has built his favorites while expanding his
reach into much of the more
Mr. Trump among voters without a
college degree, which may have
moderate Johnson and Story
counties, home to Iowa City and
wants a refund. biggest lead in New Hamp-
Mr. Graham, of South Caro-
win lost.’ shire, where he is currently
populist-oriented southern tier. helped him keep pace here. Ames, respectively.
lina, noted his low standing in polling 22 points ahead of Mr. Counties won by each candidate Monday ( )
the polls kept him off the main CHRIS CHRISTIE on Cruz, according to the Real Next three states Remaining contests through March
stage at the debates in the fall. Donald Trump’s second- Clear Politics average. The
“I got knocked out of the place finish in Iowa primary looms as a pivotal Median household income Pct. with college degree* Pct. religious adherents
Iowa Iowa Iowa
opportunity for Mr. Trump to
$40K $50K $60K $70K 20% 30% 40% 50% 20% 40% 60% 80% 100%
notch a win before the nomi-
nation fight heads to south- Cruz
Photography by Craig LaCourt
ern states viewed as friend-
©2016 Dow Jones & Co. Inc. All rights reserved. 2DJ2774

lier turf for his Texas rival.

After hours of unusual si- Trump
lence on Twitter after his
brief Iowa concession speech, Rubio
the New York billionaire
Tuesday demanded more Next
credit for his second-place contests
finish. “The media has not
covered my long-shot great S.C. Nevada N.H. Nevada S.C. N.H. Nevada N.H. S.C.
finish in Iowa fairly,” Mr. *Bachelor’s degree or higher among ages 25 and older
Sources: U.S. Census Bureau American Community Survey 2014 5-year estimate (demographics); Association of Religion Data Archives
Trump wrote. “Brought in re- (adherence); Associated Press (election results)
cord voters and got second THE WALL STREET JOURNAL.
highest vote total in history!”
Mr. Trump said Tuesday ant rallies. If he thinks he faded in polls and former Ar- she said.
evening in Milford that he needs to spend more money, kansas Gov. Mike Huckabee After a midday rally in
has “unlimited” funds to he will.” dropped out Monday. New Hampshire, Mr. Cruz
spend on his campaign if he Mr. Trump has invested “Most candidates like Cruz headed for Tuesday evening
chooses to do so. “I’m proba- more than $12 million of his who are seen as very conser- in Greenville, S.C. “We’re go-
bly $40 million under budget own money into his cam- vative have to suffer through ing to compete in New Hamp-
because frankly I haven’t had paign, according to recently New Hampshire rather than shire but we want to plant a
to spend very much,” he said. filed reports with the Federal compete there, biding our flag in South Carolina as
He also said he doesn’t Election Commission, and time until we get to South well,” said Rick Tyler, a
think he gets enough credit collected $6 million in dona- Carolina,” said Kellyanne spokesman for Mr. Cruz, who
for mostly self-funding his tions. He had $7 million in his Conway, head of a super PAC sought to lower expectations.
campaign. “I don’t know if campaign account at the end supporting Mr. Cruz. “We’ve “We’ve always been the un-
it’s appreciated really by the of the year, while Mr. Cruz always had this post-Iowa derdog in this race.”
voters,” he said. “It’s a shame reported almost $19 million Mr. Cruz’s victory in
because it’s a very big thing.” in cash on hand. Iowa Monday was grounded
Mr. Trump’s allies said While New Hampshire has
Mr. Trump’s allies in a strong turnout from
Karlie Kloss. Model, entrepreneur, philanthropist and Wall Street Journal reader.
they were confident he would typically embraced more expect him to keep evangelical Christians, but he
maintain his lead in New moderate candidates than Mr. didn’t modify his ideologi-
Hampshire, noting the state Cruz, the preacher’s son
his strong lead in cally-driven message Tuesday.
typically picks different win- has organized a network of New Hampshire. He said that if he won the
PEOPLE WHO DON’T HAVE TIME ners than Iowa and boasts a
better record of choosing the
pastors around the state and
set up a “Camp Cruz” for out-
White House, he would imme-
diately call for an investiga-
MAKE TIME TO READ eventual nominee. of-state volunteers at college strategy to get him through tion of Planned Parenthood
“Mr. Trump doesn’t like to dormitories. He had a similar all the early states.” and instruct the Justice De-
THE WALL STREET JOURNAL. lose and very rarely does he dormitory setup in Iowa. She said the PAC has spent partment that the “persecu-
lose, so it’s a little different, Mr. Cruz’s supporters see $1 million in New Hampshire, tion of religious liberty ends
but I think he’ll be fine,” said an opening for him as more South Carolina and Nevada, today.”
Find out why you should make time for the Journal. Visit WSJ.com/MakeTime Massachusetts billionaire car centrist candidates such as the next three states to hold Still, Fergus Cullen, former
dealer Ernie Boch Jr., who Florida Gov. Jeb Bush and nominating contests. Radio New Hampshire GOP chair-
has helped Mr. Trump raise New Jersey Gov. Chris Chris- ads and direct mail are man, said Mr. Cruz will have
money and is serving as a tie attack each other—and planned for New Hamp- a hard time cutting into Mr.
surrogate on local media. Mr. Rubio. Meanwhile, fellow shire, and the super PAC Trump’s base or picking up
“The plan remains the same, conservative Ben Carson, a plans television ads attacking voters leaning toward more
with of course media and gi- retired neurosurgeon, has Messrs. Trump and Rubio, establishment candidates.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
H H H H H
CAMPAIGN
WIRE
H H H H H
DEMOCRATIC PRIMARY
Study: Sanders Tax
Plan Doesn’t Add Up
Bernie Sanders’s plan to pay
for government-provided health
care falls more than $3 trillion
short of his campaign’s esti-
mates, according to a budget
watchdog group.
The plan—which Mr. Sanders
calls Medicare for All—would
raise about $10.7 trillion over the
next decade, not the $13.9 tril-
lion the campaign projected, ac-
cording to the Committee for a
Responsible Federal Budget, a
bipartisan group.
His proposals include marginal
income-tax rates as high as 52%,
which would effectively be even
higher because of expanded pay-
roll taxes. He also would increase
estate taxes, limit deductions for
high-income households and tax
capital gains at the same rates as
wage income.
Mr. Sanders estimates higher
capital-gains rates would raise
$920 billion over a decade. But
the report says those taxes
would just discourage people
from selling assets. The report
also cites Congressional Budget
Office scores of payroll and in-
come-tax increases to mark
down his other estimates.
Mr. Sanders has urged voters
to look at more than just the
taxes and to recognize that they
and their employers would no
longer be paying health-insur-
ance premiums. The campaign
didn’t respond to a request for
comment Tuesday.
—Richard Rubin
REPUBLICAN PRIMARY
Trump Comment
Riles Some Veterans
Donald Trump is being criticized
by some veterans for seeming to
play down the sacrifices of U.S.
troops in combat and the battle in-
juries they sustain. At a rally this
week in Cedar Rapids, Iowa, the
presidential candidate criticized the
Obama administration’s judgment
in giving armored military vehicles
to the Iraqi army, which lost many
of them when Islamic State over-
took the city of Mosul in 2014.
“Instead of losing their arms,
their legs, or worse, they’re OK,”
he said later, referring to U.S.
troops when their armored vehi-
cles are hit by improvised explo-
sive devices in combat.
On Twitter, some veterans
called those remarks callous and
unthinking. Alex Horton tweeted,
“An IED killed six men in my
unit, plus a journalist. We found
pieces of armor blown a quarter-
mile away.” —Ben Kesling
DIVIDE
Continued from Page One
modest approach can best solve
problems. Better to find consen-
sus on something achievable
than to wage an extended battle
that will only lead to gridlock.
“It is rare that we have the
opportunity we do now: to have
a real contest of ideas, to really
think hard about what the Dem-
ocratic Party stands for,” Mrs.
Clinton said Monday night in
Des Moines, after the slimmest
of victories in the Iowa cau-
cuses, the opening contest in the
presidential nominating season.
The debate is important for
Democrats’ identity and for set-
ting the party’s course on policy,
as well as for its political impli-
cations.
Many Democrats fear Mr.
Sanders is too liberal to win a
general election, and some are
concerned Mrs. Clinton will be
pressured to take left-leaning
positions that could hurt her, if
she wins the nomination.
Others say there is strong
support for liberal policy and
that these positions would help
either candidate in the fall.
Final results from Iowa on
Tuesday showed the former sec-
retary of state winning 49.9% to
Mr. Sanders’s 49.6%, or four
more state delegates out of
more than 1,400 at stake. The
race now moves to New Hamp-
shire, which holds its primary
this coming Tuesday.
Before then, Democrats will
have two opportunities to assess
their choices—on Wednesday
evening at a CNN forum, and on
Thursday in the candidates’ first
one-on-one debate. Late Mon-
day, former Maryland Gov. Mar-
tin O’Malley dropped out.
When Mrs. Clinton’s husband
was running for president in
1992, the centrist wing of the
* * * *
Clinton Raises Most Beltway Cash
BY BRODY MULLINS
AND REBECCA BALLHAUS
WASHINGTON—In a year in
which campaigning against
Washington is good politics,
Hillary Clinton is vacuuming
up campaign donations from
all corners of the city—and
much of the suburbs.
Financial reports made pub-
lic Sunday show Mrs. Clinton
and her backers are trouncing
their opponents when it comes
to raising money from lobby-
ists, Washington insiders and
large national labor unions. Of
the 16 industries tracked by
the Center for Responsive Poli-
tics, a nonpartisan group that
tracks campaign giving, she
outraised all other candidates
in all but two business sec-
tors—the tobacco industry and
the oil and gas sector.
The former senator and sec-
retary of state raised twice as
much money last year from the
city’s biggest lobbyists as all of
her Republican and Democratic
opponents combined. Mean-
time, a super PAC run by Mrs.
Cruz Win Chips Away at Ethanol’s Clout
BY AMY HARDER
Sen. Ted Cruz’s Monday
victory in the Iowa caucuses
struck a blow against a seem-
ingly unshakable rule of presi-
dential politics: A candidate
can’t win Iowa without enthu-
siastically supporting the fed-
eral ethanol mandate.
A desire to court Iowa’s in-
fluential corn growers has tra-
ditionally prompted candi-
dates of all stripes, whatever
their usual views of govern-
ment, to embrace ethanol. Mr.
Cruz gambled, successfully,
that questioning the mandate
would cement his position as a
small-government purist and
win the loyalty of the state’s
conservatives.
The Texas senator traveled
the state, and the country,
calling for phasing out the
mandate, which calls for
blending ethanol into gasoline,
and eliminating it altogether
by 2022. He became the first
candidate to win the caucuses
without supporting the man-
date since Congress first cre-
ated it in 2005, weathering a
rare rebuke from Iowa Gov.
Terry Branstad.
Mr. Cruz’s win raises the
question of whether the turbu-
lent conservatism roiling the
GOP electorate means that un-
conditionally embracing etha-
nol is no longer a requirement
in the Iowa caucuses.
Supporters listen to Democratic presidential front-runner Hillary Clinton at a campaign stop in Nashua, N.H., on Tuesday. She narrowly won Monday’s Iowa caucuses.
Democratic Party was ascen-
dant, with Democrats seeking to
shed their image as tax-and-
spend liberals and address mid-
dle-class concerns. As president,
Bill Clinton declared that the
“era of big government” was
over. He signed a welfare over-
haul, negotiated a balanced bud-
get and focused on reducing
crime.
Since the 1990s, the party has
moved to the left on a swath of
issues as voter anger over the fi-
nancial crisis and slow recovery
has swelled.
Nothing demonstrates the
shift more clearly than the rise
of Mr. Sanders, a political inde-
pendent from Vermont who
identifies himself as a demo-
cratic socialist. Some Democrats
worry the term “socialist” would
Clinton’s political backers
raised more than $4 million
from large national labor
unions.
To be sure, campaign dona-
tions from lobbyists and the
Washington establishment
make up a fraction of the total
amount of money contributed
to the presidential candidates
and super PACs each election.
In 2012, lobbyists were re-
sponsible for about $1.7 mil-
lion of the $850 million given
to super PACs.
The lobbying industry ranks
far below more lucrative sec-
tors such as Wall Street, health
care, Hollywood and home
builders when it comes to
campaign donations. But
money from lobbyists and the
Washington establishment
could prove more symbolic
this year, with so many candi-
dates on both sides of the po-
litical spectrum talking up
their distance from the en-
trenched political class.
In his speech after the Iowa
caucuses Monday, Mrs. Clin-
ton’s chief rival, Vermont Sen.
GOP presidential candidate Ted Cruz, greeting backers Monday,
placed first in Iowa despite opposing the ethanol mandate.
“The GOP nationally and in
Iowa has become more conser-
vative, and part of the new
conservatism is a dislike of
government subsidies—letting
Congress pick winners and
losers,” said Larry Sabato, a
political scientist at the Uni-
versity of Virginia.
The outcome chips away at
the political clout of Iowa’s
corn-ethanol industry, tradi-
tionally considered a powerful
force in one of the country’s
most important presidential
battlegrounds.
Opponents of the mandate
are likely to cite Monday’s re-
sult as evidence Congress can
scare off independents in a gen-
eral election. But for many pri-
mary voters, it represents a
commitment to fight for their
causes.
“We love Bernie Sanders,”
said Amy Noon, 28 years old, a
massage therapist in Iowa City,
Iowa. “He stands for everything
we wish the country was and is
not.”
In Iowa, the party’s “very lib-
eral’’ and “moderate’’ wings
were equal in size at the Demo-
cratic caucuses but had different
memberships, surveys taken
Monday at caucus sites showed.
Caucusgoers who called
themselves “very liberal’’ tended
to be younger, and more of them
had at least a four-year college
degree. Their top issue was in-
equality.
Wednesday, February 3, 2016 | A5
Bernie Sanders, sought politi- more about “protecting an in-
cal gain from his lack of money dividual’s right to vote than a
from Washington and Wall corporation’s right to buy an
Street. He said, “We don’t election.”
want their money, and I am Campaign money from lob-
very proud to tell you that we byists can be tallied in two dif-
are the only candidate on the ferent ways. Under the law,
Democratic side without a su- candidates must file reports
per PAC.” with the Federal Election Com-
The three Republicans top- mission showing how much
ping national polls—Donald money lobbyists have raised,
Trump, Texas Sen. Ted Cruz or “bundled,” for their cam-
and Florida Sen. Marco Ru- paigns from clients, family
bio—call themselves outsiders members and other parts of
on the campaign trail, promis- their fundraising networks.
ing to “take on Washington” Candidates are also required to
and complaining about being disclose the occupations and
attacked by the establishment. employers of their donors.
Mrs. Clinton, a former first A Wall Street Journal analy-
lady, hasn’t attempted to dis- sis shows Mrs. Clinton leads
tance herself from the Wash- all others in donations from
ington establishment. But on lobbyists by either measure—
the campaign trail, she has fre- though Mr. Rubio hovered
quently called for overhauling close to her on one of them.
the campaign-finance system— The bundling reports show
either through appointing jus- that Washington lobbyists
tices to the Supreme Court helped raise more than $2 mil-
who would uphold campaign- lion for Mrs. Clinton last year,
contribution limits or through the largest of any candidate.
a constitutional amendment. Mr. Rubio nearly matched her
At a recent stop in Urban- total from lobbyists in the final
dale, Iowa, she said she cares three months of 2015. Lobby-
Since 2011, though, that
universal backing has been
eroding. That year, Congress
decided not to renew a tax
credit that companies received
to blend biofuels, which cost
the government $6 billion a
year. Critics of the govern-
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
ment’s ethanol policy then set
their targets on the ethanol
mandate, which requires refin-
eries to blend increasing
amounts of biofuels into the
U.S. gasoline supply each year.
The presidential Republican
nominee in 2008, John Mc-
Cain, opposed the mandate
and subsidies and opted not to
campaign much in Iowa
largely for that reason. He
came in fourth in the GOP cau-
cuses. The GOP nominee in
2012, Mitt Romney, supported
muster the political will to re- the mandate and came in sec-
peal it. Republican leaders ond to Rick Santorum, who
have so far resisted calls by oil also backed the policy.
companies and others to elim- Whether Mr. Cruz’s opposi-
inate the rule, largely because tion to the mandate proves a
their own party is divided. bellwether of a larger political
Mr. Cruz garnered 27.7% of or policy shift remains to be
GOP caucusgoers, compared seen. While Mr. Cruz garnered
with 24.3% for second-place a plurality of caucusgoers, al-
finisher businessman Donald most three-quarters supported
Trump, who endorsed the other GOP candidates, most of
mandate. whom backed the mandate.
Corn has long been king in Ethanol isn’t an issue in
Iowa, the nation’s top corn- most other states with key
producing state. Iowa’s prized primary roles, including New
position as the first nominat- Hampshire, which holds its
ing state has made it hard for vote next week.
politicians to question the Timothy Cheung, an analyst
mandate. at ClearView Energy Partners
By contrast, more than half of oric has risen, too.
the moderates were age 60 or Her backers tend to minimize
older, and 60% of them didn’t the differences with Mr. Sand-
have a college degree. The econ- ers, saying that many of Mrs.
omy and jobs were their top is- Clinton’s plans—such as her
sues. $350 billion, 10-year college
The two groups also had dif- plan—are bold. But Mr. Sanders
ferent views of the direction the and his aides see differences in
nation should take once Presi- stark terms.
dent Barack Obama leaves office, “This is a fight for the soul of
with “very liberal’’ caucusgoers the Democratic Party,” Sanders
saying they wanted the next strategist Tad Devine said Tues-
president to pursue more-liberal day.
policies, and moderates saying One clear divide is tactical.
they wanted to “generally con- Mrs. Clinton regularly warns
tinue’’ Mr. Obama’s course. that trying to enact a single-
As her party has changed, payer health-care plan, as Mr.
Mrs. Clinton has shifted to the Sanders favors, would lead to
left on some issues. In 2008, for gridlock and endanger progress
instance, she opposed new So- made under Mr. Obama’s Afford-
cial Security taxes on the able Care Act. Better to act in-
wealthy; now, she supports crementally to deal with linger-
them. Her anti-Wall Street rhet- ing issues, such as high out-of-
ists raised about $715,000 for
Mrs. Clinton in the period and
about $675,000 for Mr. Rubio.
Overall, lobbyists raised a
total of $1 million for Mr. Ru-
bio’s campaign last year, far
less than for Mrs. Clinton, but
more than for any other Re-
publican. Former Florida Gov.
Jeb Bush raised $400,000 from
lobbyists last year, according
to the reports.
A Wall Street Journal analy-
sis of fundraising reports also
shows Mrs. Clinton outpaced
the field when it came to cam-
paign donations directly from
lobbyists to her campaign.
Mrs. Clinton raised
$575,000 in donations from in-
dividuals who work at the 20
largest lobbying firms in
Washington last year. Mr.
Sanders raised $6,650 from in-
dividuals at the same firms
last year.
Mr. Bush led Republicans
with about $150,000 in dona-
tions from the top 20 lobbying
shops in 2015, followed by Mr.
Rubio with just more than
$100,000.
who tracks ethanol policy,
warned against reading too
much into Mr. Cruz’s victory.
Noting that “72.3% of Iowa
opposed Ted Cruz and his
ideas and 98% of the states
hold their primaries after the
Iowa Caucus,” Mr. Cheung
added, “Good luck to the pres-
idential candidate who ignores
the political math.”
In the past couple of weeks
before the caucuses, Mr. Cruz
faced mounting criticism for
his opposition to the policy
from his biggest rival, Mr.
Trump, and from Mr. Bran-
stad, who took the rare step of
urging Iowa Republicans not
to vote for Mr. Cruz because
of his lack of support for the
ethanol mandate.
In a statement Tuesday, a
spokesman for Mr. Branstad
congratulated Mr. Cruz with-
out mentioning ethanol. “Sen.
Cruz proved last night that go-
ing to all 99 counties and fo-
cusing on retail politics is the
recipe for success,” said Ben
Hammes, Mr. Branstad’s com-
munications director.
A request for comment to
Mr. Cruz’s campaign wasn’t
immediately returned.
Sen. Marco Rubio (R., Fla.),
who came in third in Iowa,
joined Mr. Cruz in supporting
an end to the mandate in
2022. But Mr. Rubio didn’t fa-
vor phasing it out in the pre-
ceding years.
CJ GUNTHER/EUROPEAN PRESSPHOTO AGENCY
pocket costs.
Mr. Sanders has said nothing
in his agenda will come about
without a revolution, but he is
vague about how the revolution
will come to pass.
The two candidates’ perspec-
tives differ in fundamental ways
on their view of how much gov-
ernment is needed to address
society’s problems.
Mr. Sanders wants to expand
the suite of benefits offered to
all Americans, while Mrs. Clin-
ton favors more targeted ideas.
For example, Mr. Sanders would
increase Social Security benefits
across the board, while Mrs.
Clinton wants an increase tar-
geted to the poorest senior citi-
zens.
—Jennifer Levitz
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A6 | Wednesday, February 3, 2016
Brussels Outlines Possible Deal With U.K.
Proposals aim to meet
Cameron’s demands
for changes to Britain’s
relationship with bloc
The European Union pre-
sented the outlines of a possi-
ble deal on U.K. Prime Minis-
ter David Cameron’s demands
for a changed relationship
with the bloc, sparking a polit-
ical battle in Britain over
whether the concessions build
the case for staying in the EU.
By Laurence Norman
in Brussels and
Jenny Gross in London
The proposals—the result
of intense negotiations be-
tween EU and U.K. officials in
recent weeks—kick-start what
will likely be tough discus-
sions among all of the EU’s 28
governments over the next
weeks. The bloc has set a Feb.
18-19 leaders’ summit as the
target date for a final deal.
By offering Mr. Cameron
several key concessions while
steering clear of any perma-
nent overhaul of EU treaties
or key rules, Tuesday’s pro-
posals could smooth the way
to a February agreement and a
possible June U.K. referendum
on EU membership.
Mr. Cameron, who had
pledged to secure a “better
deal” for the U.K. within the
EU before holding the referen-
dum, said the document—
while still short of detail—
promised substantial change.
His critics, including those
within his Conservative Party,
denounced them as failing to
deliver on fundamental re-
form.
The proposals, laid out by
After Bold Talk, Cameron Scores a More Modest Win
When British Prime Minis-
ter David Cameron spoke
about resetting his country’s
relationship with the European
Union before his re-election
By Stephen Fidler,
Valentina Pop
and Laurence Norman
last year, he pledged “proper,
full-on” change to the funda-
mental treaties governing rela-
tions between EU states.
What Mr. Cameron has in
fact achieved—assuming that
the final agree-
ANALYSIS ment between
the U.K. and its
27 EU partners
retains roughly the form of the
EU proposals released Tues-
day—is far more modest.
Future treaty change does
remain a possibility, but Mr.
Cameron’s strongest claim is
that the negotiation seems set
to achieve some important ob-
jectives once deemed impossi-
Rebel Chief at Syria Talks Open to Political Solution EU Moves
BY SAM DAGHER
GENEVA—An Islamist rebel
who the Syrian government and
its allies Russia and Iran call a
terrorist said Tuesday that he
would accept a political solution
to end the war, even as the
United Nations struggled to get
the negotiations going.
Rebel commander Moham-
mad Alloush’s appearance in Ge-
neva as one of 30 or so members
of the opposition delegation has
added more friction to the al-
ready fraught negotiations.
His Army of Islam is one of
the largest Islamist rebel
groups in Syria, with about
10,000 fighters who are
strongly backed by Saudi Ara-
bia. The Assad regime and its
backers wanted him excluded.
But Western officials say the
involvement of people like him
as well as other, more moderate
rebels is crucial to implement-
ing any deal reached in Geneva.
Progress even in declaring
the talks open has been slow.
The opposition has set condi-
tions before it will start negoti-
ations on a political transition
in Syria, among them relief for
besieged, rebel-held areas.
The regime on Tuesday al-
lowed the International Com-
mittee for the Red Cross and its
local affiliate to deliver 14
trucks of aid to the rebel-held
town of Al-Tal near the capital
Damascus, a U.N. official and
Prime Minister David Cameron met Tuesday with staff at a plant run by German industrial giant Siemens AG in Chippenham, England.
European Council President
Donald Tusk in a 17-page doc-
ument to European leaders, in-
clude a measure that would at
least partly address Mr. Cam-
eron’s most controversial de-
mand: a way to restrict bene-
fits for EU nationals coming to
the U.K. so as to try to reduce
migration.
Mr. Tusk’s proposals calls
for a so-called emergency
brake mechanism that would
allow the U.K. or other EU
countries to limit access to
benefits to newly arrived
ble—including mechanisms
limiting welfare payments to
newly arrived migrants from
elsewhere in the EU.
In fact, EU officials involved
in the negotiations that pro-
duced Tuesday’s proposals
said the main focus of their
work was to find legal ways to
accommodate Mr. Cameron’s
biggest demands within the
current EU treaties. In Eu-
rope’s current uncertain politi-
cal climate, putting treaty
change to a vote, as is required
in some countries, including
France and its disillusioned
electorate, would have been to
invite almost certain rejection.
“The legal form was a big
challenge,” said one EU diplo-
mat involved in the talks. “Mr.
Cameron wanted a legally
binding, irreversible deal,
which had to be squared with
the fact that there was no
treaty-change appetite among
member states.”
The outcome was a pro-
Rebel commander Mohammad Alloush arriving Monday in Geneva.
local activists said. It was un-
clear, however, if this gesture
would be enough to get the
talks started.
The Syrian government dele-
gation chief, who met Tuesday
with U.N. special envoy Staffan
de Mistura, said afterward that
the talks couldn’t start until he
knew exactly the makeup of the
opposition delegation.
Mr. de Mistura didn’t make
any public statements after the
meeting, and a U.N. spokesman
later declined to comment.
In an interview, Mr. Alloush
said he endorsed the U.N. Secu-
rity Council resolution passed
last month that outlined a polit-
ical solution to the nearly five-
year conflict. “We have an-
nounced that we support
Resolution 2254,” he said.
WORLD NEWS
workers from elsewhere in the brake following a referendum.
bloc for up to four years in the Mr. Tusk also proposed a
case of an exceptionally large mechanism aimed at address-
inflow of people. Under the ing British concerns that the
proposal, such workers would 19 countries of the eurozone,
gradually win the right to which form a majority of the
claim some benefits. EU’s 28 member countries,
But the measure would only could drive through proposals
be temporary, and it remains over the heads of the nine
uncertain how long the mea- member states outside the
sure could remain in place and currency bloc, including the
exactly what conditions would U.K.
be required to trigger it. Se- Mr. Cameron had originally
nior EU diplomats said Tues- argued that a deal must be le-
day it could take months to gally binding and irreversible
implement the emergency and pushed for treaty change.
Something Ventured, Something Gained
U.K. Prime Minister David through proposals over the
Cameron’s main demands and heads of the nine EU members
how far the EU’s proposed deal outside the currency bloc.
goes in meeting them: Proposed: A measure that lets
Britain and other noneurozone
Goal: Gaining the power to countries flag concerns with EU
restrict benefits for EU nationals leaders. But there would be no
coming to the U.K. veto over eurozone issues or
EU Proposed: An emergency delays to urgent decisions.
brake that would let Britain limit
such benefits for four years. The Goal: More say for national
mechanism would be a parliaments within the EU’s
temporary one, and it is unclear lawmaking process.
how long the power would last. Proposed: A measure to enable
national legislatures to block
Goal: Safeguards to keep the 19 legislation if just over half of
eurozone countries from driving them support the move.
posed intergovernmental was the possibility of some fu-
agreement to be lodged with ture treaty change held out:
the United Nations. That is The first to embed safeguards
provided that Britons vote to for countries outside the euro-
stay in the EU in their referen- zone, and the other to en-
dum on the matter, on course trench the principle that the
to be held in June. U.K. “is not committed to fur-
Only in two limited areas ther political integration into
“We need to know with
whom we are going to have
these indirect talks,” Mr. Ja’afari
MUMEN KHATIB/AGENCE FRANCE-PRESSE/GETTY IMAGES
said. “According to his own in-
terpretation, Mr. de Mistura had
the impression that circum-
stances were right to launch the
talks, but they are not.”
The confidence-building
measures demanded by the op-
position include the lifting of
regime sieges on rebel-held ar-
eas, an end to aerial bombard-
ment, especially by Russia, and
the release of detainees.
But regime forces and their
allies, including Iran-backed mi-
litias supported by Russian war-
planes, on Tuesday escalated
The resolution calls for talks their attacks against rebel-held
leading to a transitional govern- areas, especially around the
ment within six months and a northern city of Aleppo.
new constitution and elections In one of their largest mili-
within a year after that. In tan- tary operations since the start
dem, all parties to the conflict— of Russia’s involvement at the
including President Bashar al- end of September, pro-regime
Assad’s regime and groups such forces captured one village and
as the Army of Islam—would were close to threatening the
agree to a nationwide cease-fire. rebels’ main supply line to Tur-
“I challenge Bashar and Rus- key, according to Syrian state
sia’s [Vladimir] Putin to accept media and local activists.
this resolution in full and imple- One local citizen journalist
ment it on the ground in full,” said at least 33 people have been
said Mr. Alloush. “I don't think killed over the past 24 hours and
they will ever comply.” that families in nearby villages
Bashar Ja’afari, Syria’s am- were now fleeing.
bassador to the U.N. and chief A senior Turkish official said
envoy at the talks, said he spe- they have joined about 10,000
cifically brought up Mr. Al- people now amassed at the bor-
loush’s presence with Mr. de der since the fall.
Mistura, who has been meeting Secretary of State John
separately with each side. Kerry said Tuesday that both
* * THE WALL STREET JOURNAL.
European project is founded,”
he added. Some EU leaders
have said they wouldn’t accept
any measures that breached
what they considered to be
fundamental principles, such
as freedom of movement.
Some lawmakers in Mr.
Cameron’s own Conservative
Party pounced on the proposal
as inadequate. One of the main
groups campaigning for Brit-
ain to withdraw from the EU,
called Leave.EU, described the
draft plan as “a fudge and a
farce.” Liam Fox, a euroskeptic
Conservative lawmaker and
former defense minister, said
none of the proposals “even
come close to the fundamental
changes promised to the pub-
lic.”
In a blow to the campaign
for Britain’s exit, Home Secre-
tary Theresa May, who has ex-
pressed frustrations with the
U.K.’s membership in the bloc,
said Tuesday that the EU pro-
BEN PRUCHNIE/GETTY IMAGES
posals showed the U.K. had
made progress in its negotia-
tions.
“As the prime minister has
said, more work needs to be
done, but this is a basis for a
deal,” she said.
Mr. Cameron now also faces
the challenging task of con-
Instead, most of Mr. Tusk’s vincing the other 27 European
proposals are based on legisla- leaders to sign on. One EU
tive changes or clarifications diplomat warned of more diffi-
by EU leaders of how the cult negotiations ahead. “Don’t
bloc’s rules should work. Mr. put the Champagne in the
Tusk aims, though, for a final fridge yet—don’t even buy it,”
deal to be lodged as an inter- the person said. “This is not
national agreement to give it yet victory.”
additional legal force. Mr. Cameron, who heads to
“To my mind it goes really Poland on Friday, also must
far in addressing all the con- persuade a cluster of Central
cerns raised by Prime Minister and Eastern European govern-
Cameron,” Mr. Tusk said in his ments that have expressed
letter to EU leaders. “The line deep concerns about any deal
I did not cross, however, were that they believe would dis-
the principles on which the criminate against workers.
the European Union.” them. The new rules will apply
But the main solution for
addressing the U.K.’s demand
only for new entrants—and
then for a limited time.
to restrict benefits to migrants Jonathan Portes, a migra-
would be a temporary mecha- tion specialist at the National
nism—not a permanent change Institute of Economic and So-
that would alter the principle cial Research in London, said
of free movement of workers that if the text survives un-
within the bloc’s single market. changed, “it is likely to have
What is clear is that if they some, but not much, impact on
vote in June, the British people benefit receipts by EU mi-
won’t be able to see the final grants, but rather little on im-
form of the legislation on ben- migration.”
efits for EU migrants, politi- Mr. Cameron must still em-
cally the most sensitive of Mr. bark on negotiations with the
Cameron’s demands. Because 27 other members of the EU. It
the EU’s lawmaking procedures took a flurry of early-morning
take time to wind their way to phone calls and text messages
completion, that certainty with President François Hol-
would come at best several lande and his staff to green-
months after the referendum, light the proposals that
assuming the vote is to stay in. emerged Tuesday. France’s
It would also mean that concerns about handing the
those low-paid workers who U.K. effective veto powers over
qualify for tax credits among eurozone affairs is just a fore-
the estimated 1.9 million EU taste of likely tensions ahead if
migrants currently working in Mr. Cameron is to get a final
the country won’t have those deal, as he wants, at an EU
payments stripped away from summit on Feb. 18-19.
the Russians and Iranians have
To Improve
told him they are prepared to
begin a cease-fire, and that it Antiterror
Teamwork
“should be doable.” He also
said the U.S. didn’t expect the
Syrian opposition to remain at
the negotiating table during a BY VIKTORIA DENDRINOU
prolonged bombing campaign.
“We are all extraordinarily BRUSSELS—The European
sympathetic to the limits of pro- Union on Tuesday presented
priety and common sense in the plans to better track and
opposition sitting at a table freeze terrorist financing
while somebody continues to across the bloc, a push that
bomb you,” he said in Rome. took on new momentum af-
Moscow says it is targeting ter the November attacks in
only “terrorists” including Is- Paris.
lamic State. The U.S. and its al- The proposal from the Eu-
lies say only about 30% of Rus- ropean Commission, the EU’s
sian airstrikes have targeted executive arm, includes asset
Islamic State, with the rest hit- freezes, limiting illicit move-
ting other rebel groups, includ- ments of cash, and improved
ing those backed by the West. sharing of financial intelli-
Overcoming all the enmity gence, as requested by France,
and mistrust that has built up which has led efforts in the
over nearly five years of war bloc to crack down on terror-
may be a more formidable ist groups.
challenge than world powers The plans attempt to choke
have anticipated. off terrorist organizations’
“Russians have killed our sources of revenue and use
leader and there’s blood now be- movements of funds and as-
tween us,” Mr. Alloush said. sets to trace terrorists.
He said Russian missiles Many of the proposals will
killed his cousin and brother-in- be incorporated into existing
law Zahran Alloush, the founder anti-money-laundering legisla-
of the Army of Islam, on Dec. 25 tion, which will be updated to
in an attack claimed by the re- include more intelligence-
gime. But Russia never denied sharing and tracking mea-
accusations it was responsible. sures. The amended rules will
—Asa Fitch in Geneva, Dana include a list of compulsory
Ballout in Beirut and Felicia checks that banks should carry
Schwartz in Washington out on money coming from
contributed to this article. countries deemed high risk.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Wednesday, February 3, 2016 | A6A
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A6B | Wednesday, February 3, 2016 NY THE WALL STREET JOURNAL.

IT’S IMPOSSIBLE
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A L O N E.

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SU2C Ambassador

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THE WALL STREET JOURNAL. * * * * * Wednesday, February 3, 2016 | A7

WORLD NEWS

Food Firm Sees ZikaSapsBrazilTouristPush

Venezuela Crisis BY PAUL KIERNAN
AND ROGERIO JELMAYER

BY ANATOLY KURMANAEV ruler Hugo Chávez called the RIO DE JANEIRO—Brazil’s

CARACAS, Venezuela—This
country’s largest privately
owned company, a food-and-
drink producer, has urged the
cash-strapped government to
seek international financial aid
to avoid the collapse of the
food supply amid the country’s
deep economic crisis.
“Venezuela is a member of
many multilateral organiza-
IMF and World Bank imperial-
ist puppets and eliminated of-
ficial meetings with the lend-
ers a decade ago.
President Nicolás Maduro
has repeatedly called Mr. Men-
doza the chief saboteur behind
the deepening food shortages
gripping the country, which
saw oil revenue drop by 60%
over the past 12 months.
At the same time, authorities
status as ground zero in the
latest global health scare is
raising fears that travelers are
canceling plans and dashing
hopes that this summer’s
Olympics would buff the coun-
try’s image as a tourist desti-
nation.
International concern has
been mounting in recent weeks
after Brazilian authorities
linked the little-understood

SILVIA IZQUIERDO/ASSOCIATED PRESS

tions which it will have to ap-
proach…to attend to the li-
quidity issue it’s facing,”
Lorenzo Mendoza, the presi-
dent of Empresas Polar SA,
said Tuesday. “Not doing that
will cause grave harm to ordi-
nary Venezuelans.”
Polar’s food-processing di-
vision is in a “critical situa-
tion” after two years of nega-
tive cash flow caused by price
controls and shortages, Mr.
Mendoza said. Polar products
from mayonnaise to beer are
part of the daily diet of practi-
cally every Venezuelan.
Mr. Mendoza drew the gov-
ernment’s ire in October, after
a ruling-party chief aired an
alleged taped phone conversa-
tion between the businessman
and Ricardo Hausmann, a Har-
vard economics professor, dis-
cussing Venezuela’s need for
up to $60 billion of loans from
the International Monetary
Fund and the World Bank to
avoid economic meltdown.
Venezuela’s late Socialist
FEDERICO PARRA/AGENCE FRANCE-PRESSE/GETTY
have denied Polar dollars—allo-
cated through a complex cur-
rency-control system—to im-
port raw materials. They also
raided company facilities more
than twice a day last year.
The world’s highest infla-
tion has wiped out the value
of regulated products Polar
has to provide to supermar-
kets. A kilogram of Polar’s
corn flour, a Venezuelan sta-
ple, is priced by the govern-
ment at two U.S. cents at the
black-market exchange rate.
Instead of allocating dollars
to domestic producers, the
government has imported food
worth billions of dollars from
regional allies such as Brazil
and Nicaragua for as much as
18 times the cost of locally
made foodstuffs, according to
Venezuela’s association of pri-
vate food processors.
“This model has failed, we
need a new one,” Mr. Mendoza
said. “The country can’t bear
this anymore; the citizens
can’t bear this anymore.”
Zika virus to microcephaly, a
rare birth defect in which ba-
bies are born with undersized
heads and brains. The World
Health Organization on Mon-
day declared the virus a global
public-health emergency, two
weeks after the U.S. Centers
for Disease Control and Pre-
vention recommended that
pregnant women avoid travel
to countries affected by the
outbreak, including Brazil.
Health officials there say as
many as 1.5 million Brazilians
may be infected by the mos-
quito-borne virus. On Tuesday
the health ministry released
new figures showing that the
number of suspected and con-
firmed cases of babies born
with undersized skulls and
brains continues to rise.
The news couldn’t come at a
worse time for Brazil. The gov-
ernment has spent billions of
dollars in the past half-decade
preparing to host global sport-
ing events, a high-stakes gam-
ble aimed at lifting the world’s
fifth-biggest country out of its
lowly 42nd-place ranking for
international tourist arrivals.
“If there’s one thing that
Viviane Oliveira danced by a sign reading ‘Get out, Zika!’ on Rio’s Ipanema beach on Sunday.
December have largely been of
weeping mothers, infants with
tiny heads, and soldiers clean-
ing out ditches and other mos-
quito breeding grounds.
For Juliann Phan, a senior
at Virginia’s George Mason
University who was planning a
three-week trip to Brazil as a
graduation present in June, the
news reports were enough to
make her cancel her plans.
“I consciously decided to
cancel my trip because the vi-
rus still seems relatively un-
known,” Ms. Phan said. “Any-
time there are medical dangers
regarding a trip, I don’t take
the risk.”
São Paulo-based hospitality
consultant Cristiano Vasques
said Brazil’s brand can ill af-
ford another blow after a year
Rapid Rise
Cumulative Brazilian
cases of microcephaly,
a birth defect that
may be linked to
Zika virus
infection*
2015 2016
*Suspected cases since Oct. 22,
when reporting became mandatory;
some cases have been ruled out.
Source: Brazilian Health Ministry
bombarded with questions on
5,000 the virus.
“It worries us just as it wor-
ries the World Health Organi-
4,000 zation and everyone else,” the
spokesman, Mario Andrada,
said.
3,000 Health scares can have a im-
pact on tourism in countries
seen as centers of an epidemic.
2,000 Travel to Mexico declined
sharply during the 2009
“swine flu” panic, for instance.
1,000 Brazil, located in the oppo-
site hemisphere from most in-
ternational travelers, has
0 struggled to draw visitors even
in the best of times.
In 2014, when it hosted soc-
cer’s World Cup, Brazil notched
6.4 million international tourist
arrivals, up about 10% from the
previous year. But that

THE WALL STREET JOURNAL.

transforms a country into an
attractive tourist destination,
it’s the Olympics,” President
Dilma Rousseff said in an Octo-
ber speech. “The eyes of the
world are turned to Brazil….We
will make the Olympic year a
mark of consolidation as a
tourist destination.”
But instead of lush rain for-
ests, tropical beaches and ex-
otic wildlife, the photos com-
Lorenzo Mendoza, head of food giant Empresas Polar, on Tuesday. ing out of Brazil since
of headlines about water pollu-
tion in Rio de Janeiro, eco-
nomic crisis and corruption, all
on top of longer-standing con-
cerns about violent crime.
With global fears of Zika be-
coming “more dramatic by the
day,” he said the virus could
become a deciding factor for
prospective visitors.
“It’s one more hit to the im-
age of the country,” said Mr.
Vasques.
Brazilian tourism officials
say there hasn’t been a major
impact from Zika. Vinicius
Lummertz Silva, president of
government tourism agency
Embratur, said he still expects
some 400,000 foreigners to ar-
rive for the Olympics in Au-
gust.
At a news briefing Tuesday,
the spokesman for Rio’s Olym-
pic organizing committee was
amounted to a fraction of the
29.1 million guests to Mexico,
Latin America’s most popular
destination country, that year.
Brazil’s distance from the
rest of the world only partly
explains its underperformance.
Experts say other factors—
some self-inflicted—are also at
play. For instance, Brazil re-
quires U.S. citizens to apply for
tourist visas before traveling,
an often cumbersome process.

W S J + TA L K

The State of the Presidential Race

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presidential race, moderated by Washington Bureau Chief Gerald F. Seib

DEMOCRATIC POLLSTER JOEL BENENSON U.S. REP. JAMES E. CLYBURN

FEBRUARY 5TH FEBRUARY 19TH
8:00 - 10:00 AM EST 8:00 - 10:00 AM EST
MANCHESTER, NEW HAMPSHIRE COLUMBIA, SOUTH CAROLINA

REGISTER NOW AT WSJPLUS.COM/ELECTIONSERIES @wsjplus #wsjplus

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Wednesday, February 3, 2016
DORMS
Continued from Page One
“We get up at a stipulated
time, we live in a small hostel,
we go everywhere in groups.”
Newly elected lawmakers of-
ten have a hard time finding
somewhere suitable to live in
their nation’s capitals. In Wash-
ington, some lawmakers have
been known to make a virtue
out of camping in their offices
to show they aren’t part of the
mainstream political machine.
Myanmar’s new MPs,
though, the bulk of them from
Nobel Peace Prize winner Aung
San Suu Kyi’s National League
for Democracy, have to put up
with more than most. For the
next five years, many will bunk
down in rooms like Mr. Khin
Maung Soe’s—spartan, 15 by 15
feet rooms in long rows of pas-
tel-green dormitories. The
dorms were originally built to
provide opposition lawmakers
a place to stay.
The rooms are a far cry from
the sprawling compounds and
mansions where lawmakers
from the outgoing military-
linked government lived. The
former ruling party headquar-
ters was deserted on a recent
visit.
“It isn’t a good feeling, being
here,” said Kyaw Thein, one of
the few Union Solidarity and
Development Party lawmakers
who won a seat in November’s
election, who now lives in the
party headquarters. “We had so
many seats before, but now we
have so few, and this building is
now so empty.”
But many of the mansions
remain home to former generals
who are choosing to retire here.
Furnishings in NLD’s dorms
are little more than wooden
beds lined with an inch-thick
foam mattress and a flat pillow.
The small bathrooms attached
to the rooms lack water heaters.
Reddish-brown water comes
sputtering out of the taps.
There are no stoves or facilities
for cooking.
“It isn’t so great for the old
MPs who live here, because the
weather gets so cold sometimes
and there is no hot water,” said
Yan Lynn, a new NLD lawmaker
who just moved in to the guest-
YAHOO
Continued from Page One
retail partners was about $1
billion, down 15% from a year
ago and the lowest point dur-
ing Ms. Mayer’s tenure.
Her efforts were compli-
cated in recent months by an
exodus of top managers and
growing impatience from in-
vestors, including hedge-fund
activist Starboard Value LP,
who has called for new leader-
ship and a sale of the com-
pany.
In an interview, Ms. Mayer
said she was confident a turn-
around could still be accom-
plished. “I’m very much look-
ing forward to the turnaround
plan that I have presented to-
day, and I think it will make us
the best version of ourselves,”
she said.
Three years ago, Ms. Mayer
said she planned to return Ya-
hoo to a growth rate on par
with competing Internet com-
panies such as Google Inc. and
Facebook Inc. The new plan
represents a more realistic vi-
sion for turning around the
BID
Continued from Page One
genta itself, as slumping
commodity prices have pres-
sured farmers’ spending.
Terms of the deal with
China National Chemical,
known as ChemChina, call for a
price of about 470 Swiss
francs, or $461, a share in cash,
according to people familiar
with the matter. Bankers and
investors have said it would be
difficult for Monsanto, or any
other company, to match such
an all-cash offer. However, an-
other suitor could emerge.
If completed, the transac-
tion would represent the larg-
est foreign acquisition by a
Chinese company by far. That
honor is now held by Cnooc
Ltd.’s 2013 purchase of Can-
ada’s Nexen, an oil producer,
for $18.2 billion.
Shares in Syngenta rose
sharply after The Wall Street
Journal reported the talks ear-
lier Tuesday. The stock closed
up 3.7% at 392.30 francs in Zu-
rich.
Syngenta is due to report
2015 full-year financial results
National League for Democracy lawmakers arrive for the new parliament this week in Naypyitaw, Myanmar, where many stay in spartan dorm-style accommodations.
house. He reckoned his room “a
bit small.”
The MPs aren’t compelled to
stay in the dormitories. But
with a salary of $3,880 a year, it
is their only realistic option.
Many, like Ms. Suu Kyi, were
political prisoners or activists,
and some don’t have much in
the way of private financial
means. Building their own
homes as some members of the
outgoing military government
did isn’t an option.
Kan Chon, a member of the
Naypyitaw city council, a gov-
ernment body that has jurisdic-
tion over the dormitories, said
it has been providing additional
furniture in the rooms, like
shelves, and has started provid-
ing meals to MPs living there.
“Any big improvements would
have to wait until the next gov-
ernment is in power, because of
budget concerns,” he said. The
NLD government will fully take
over in April.
business, she said.
“I probably now understand
more of what the necessary
steps and ingredients are and
have a bit more realism in
terms of how quickly they can
be at companies as large as
Yahoo,” Ms. Mayer said.
Yahoo’s plan did little to ap-
pease some shareholders in-
cluding SpringOwl Asset Man-
agement LLC, which in
December recommended the
company cut up to 75% of staff
and bring in a more opera-
tions-focused CEO.
“This is a company that has
clearly suffered from a lack of
focus,” said Eric Jackson, man-
aging director at SpringOwl.
“We believe there is much
more that needs to be done to
improve the profitability of
the business.”
Investors have until March
26 to submit proxy proposals.
Prior to Tuesday’s announce-
ment, Starboard has indicated
it would nominate a slate of
new directors. The investor
didn’t respond to a request for
comment.
At the moment, Yahoo is fo-
cusing on trimming costs to
make it more attractive to in-
on Wednesday.
A deal would need to pass a
gantlet of regulatory examina-
tions in Europe and the U.S.,
which bankers and lawyers
said could prove difficult. They
said U.S. authorities would
scrutinize the transaction. Ap-
proximately one-quarter of
Syngenta’s sales come from
North America.
Syngenta is the top pesti-
cide seller in North America in
terms of revenue, and it sells
10% of soybean seeds in the
Growing Concentration
Pending approval of recent deals, just a handful of companies will
dominate the global seed and pesticide businesses.
2014 sales in billions
Dow Chemical/DuPont*
Syngenta/ChemChina*†
Monsanto
Bayer AG
BASF SE
*Pending deal †Estimate includes $3.2 billion in pesticide sales by Adama Agricultural
Solutions co-owned by ChemChina and Koor Industries.
Sources: Sanford C. Bernstein; Adama Agricultural Solutions
THE WALL STREET JOURNAL.
FROM PAGE ONE
Worst of all might be Naypy-
itaw itself.
The country’s old military re-
gime relocated the capital here
from the main populations cen-
ter around Yangon, about 200
miles south, in 2005, back when
many NLD lawmakers and Ms.
Suu Kyi herself were still locked
away. The idea was to build a
monument to what the old
junta believed would be its un-
wavering power.
Though much has changed
since then, the capital still
hasn’t attracted the kind of
crowds the army expected. Its
oversize buildings dwarf the
few people on the streets, most
of them gardeners tending to
manicured plants and trees that
line the sidewalks. Its highways
have just a handful of cars on
them at any one time.
There are some attractions
to divert the new MPs, many of
whom haven’t visited Naypyi-
taw before.
Too Many Yahoos
The Web company’s work force is still large compared with
the size of its business
Number of employees at Yahoo
Goal by end
12,000 of 2016:
9,000
9,000
6,000
3,000
0 Apple
2012 ’13 ’14 ’15
Note: Excludes part-time employees and contractors
Source: the companies
vestors or buyers. Yahoo said
that by the end of 2016, it an-
ticipates having about 9,000
employees and fewer than
1,000 contractors, which rep-
resents a workforce that is
roughly 42% smaller than it
was in 2012. The company
sees the cuts resulting in sav-
ings of $400 million a year.
U.S. and 6% of U.S. corn seeds,
according to estimates from
Morgan Stanley. The company
was created in 2000 through
the merger of the agribusiness
operations of European phar-
maceutical giants Novartis AG
and AstraZeneca PLC.
The talks come amid global
concerns about China’s slowing
economy and Beijing’s at-
tempts at managing that slow-
down, partly by orchestrating a
gradual easing of the country’s
currency. That has whipsawed
Pesticides Seeds
$9.4 $9.2
$15.0 $3.1
$4.9 $10.7
$11.1 $1.5
$7.3
There is a gem museum
showcasing chunks of jade and
blood-red rubies mined from
the country’s north, and an
herb garden displaying medici-
nal plants from all over the
country.
Then there is the water park
where a fountain lights up at
night and a zoo where the air-
conditioning in the penguin en-
closure wasn’t cold enough,
killing all 10 birds over the
course of two years. A zoo-
keeper said they never took to
Naypyitaw’s hot and dry
weather.
Many new MPs say it feels
eerie.
“The roads and buildings
here are so different from any-
thing I have seen in the past,”
said U Myo, a new lawmaker
who visited the capital for the
first time last week. “There are
no people here, but I came
from a place that is highly
populated, where many people
Revenue per employee in 2015
Yahoo
$469,000
per employee
Google
$1.2 million
Facebook
$1.4 million
$2.1 million
THE WALL STREET JOURNAL.
In a call with analysts on
Tuesday, Ms. Mayer said the
restructuring would help Ya-
hoo improve its focus on three
key areas: search, communica-
tions and digital content.
“We will simplify the busi-
ness to improve execution,”
Ms. Mayer said on the call.
“Yahoo cannot win the hearts
not only the country’s domes-
tic stock markets, but also
global shares, bonds and cur-
rencies—while contributing to
a sharp fall in commodities
prices world-wide.
Bankers said recent take-
overs by Chinese acquirers
might suggest that executives
there are expecting more de-
preciation is on the way. Doing
deals now would make more
sense for Chinese buyers than
later, when any overseas acqui-
sitions could be more expen-
sive.
China’s government, mean-
while, has been pushing devel-
opment of its agricultural sec-
tor by consolidating domestic
seed companies and research-
ing biotech crops, which are
genetically modified to resist
bugs and pesticides.
Though some biotech crops,
such as cotton, are allowed to
be grown in China, govern-
ment officials have cited
safety concerns in holding off
approving new ones while
prodding its agricultural sec-
tor to modernize. Acquiring
Syngenta, which develops ge-
netically engineered seeds,
could help further open the
Chinese market to biotech
* *** THE WALL STREET JOURNAL.
lived together. Now it feels
very isolated.”
Some lawmakers from Ms.
Suu Kyi’s party who won their
seats in by-elections a few
years ago say Naypyitaw just
takes some getting used to.
“For me, since I have spent
such a long time in prison in
much more difficult conditions,
it isn’t too bad,” said Thein
Swe, a lawmaker who has lived
in these guesthouses since
2012. He was a political pris-
oner who spent about 10 years
in prisons for his allegiance to
Ms. Suu Kyi.
Many lawmakers said they
were so happy being able to
serve in government that the
strangeness of their new
homes was secondary. They
said they would enjoy having
Wi-Fi or a library in their
guesthouses.
Still, there is some good
news for the NLD. Improve-
ments are being made to the
and minds of users and adver-
tisers with a complex portfolio
of assets.”
Ms. Mayer is also betting
Yahoo can make headway in
mobile search, even though
the company has failed to gain
any ground in Web search
from Google and Facebook. Ya-
hoo has been working on a
search engine tailored to mo-
bile phones that can help peo-
ple quickly find their personal
information or the right apps,
people familiar with the mat-
ter have said. “We really think
mobile search needs a much
deeper reimagination,” Ms.
Mayer said Tuesday.
In the meantime, Yahoo also
said it has begun to explore di-
vesting itself of nonstrategic as-
sets, such as patents, the sale of
real estate, and other noncore
assets. Through the end of the
year, the company estimated
that these efforts could generate
between $1 billion and $3 billion
in cash.
“The board also believes that
exploring additional strategic al-
ternatives, in parallel to the exe-
cution of the management plan,
is in the best interest of our
shareholders,” Yahoo Chairman
crops, analysts said.
Despite economic head-
winds at home, Chinese com-
panies last year spent more
than $112 billion on acquisi-
tions across the globe, accord-
ing to Dealogic. ChemChina
has been especially prolific.
Last month, it agreed to buy
Munich-based equipment
maker KraussMaffei Group for
$1 billion. The same month, it
took a 12% stake in Mercuria
Energy Group, a large, pri-
vately held energy trader, for
an undisclosed sum.
The deal would mark fur-
ther consolidation of the seed
and pesticide sectors after Du-
Pont Co. and Dow Chemical
Co. announced their merger in
December. Monsanto last
spring set off the current deal-
making wave in the chemicals
sector when it proposed buy-
ing Syngenta.
After unsuccessfully court-
ing Syngenta investors and
sweetening its offer to $46 bil-
lion in cash and stock, Mon-
santo dropped its pursuit in
August, sending Syngenta’s
shares lower and leaving many
Syngenta shareholders frus-
trated as challenges mounted
for agricultural companies.
SOE ZEYA TUN/REUTERS
parliament building, which
boasts a new cafe selling dim
sum and a souvenir shop. Their
guesthouses too are slowly be-
ing improved.
“They have started to up-
grade the bedding now that we
are in government,” said Thin
Pa Pa Mying, who splits her
time between Yangon and the
Naypyitaw guesthouse where
she accompanies her father, an
NLD lawmaker elected in the
earlier round of by-elections.
“For example we now have
new silicone pillows. Before
they were like one-time-use
objects,” she said.
—Myo Myo in Naypyitaw
contributed to this article.
VIDEO
See video about
WSJ
.COM
Myanmar’s
parliament living
quarters at
wsj.com/ahedvideo.
Maynard Webb said in a news
release. That represents a
broadening in stance from De-
cember, when Mr. Webb said the
company wasn’t interested in a
sale but would entertain offers
as part of the board’s fiduciary
duty.
Yahoo also said Tuesday that
finance-industry entrepreneur
Charles Schwab is resigning
from its board. Mr. Schwab was
among the seasoned executives
Ms. Mayer added to the board
as she put her own stamp on its
governance.
Mr. Schwab, whose depar-
ture will leave the Yahoo board
with seven directors, pointed
to his other professional com-
mitments and demands on his
time and said his departure
wasn’t related to any disagree-
ment with the company.
Shares of Yahoo, down 35%
over the past year, fell 1.2% to
$28.72 in after-hours trading.
Yahoo reiterated Tuesday
that it will continue exploring
a separation of its operating
business from its stake in Ali-
baba. “I do feel comfortable
we can do it this year,” Chief
Financial Officer Ken Goldman
said on the earnings call.
Syngenta’s chief executive
at the time retired and John
Ramsay, its interim CEO, has
said the company was discuss-
ing possible deals with multi-
ple parties, a shift in its initial
resistance to a takeover.
Some analysts think Mon-
santo could make another at-
tempt. “If I’m an investment
banker and I’m unable to un-
earth a counteroffer, that says
a lot about the state of this in-
dustry,” said Mark Gulley,
principal of New York-based
chemicals consultancy Gulley
& Associates LLC. A Monsanto
spokeswoman declined to
comment.
A deal with ChemChina
would likely need to get ap-
proval from the Committee on
Foreign Investment in the U.S.,
or CFIUS, the federal body
that screens corporate take-
overs for security concerns,
observers say. Chinese acquisi-
tions have undergone more in-
tense scrutiny in the U.S. in
recent years. Representatives
of CFIUS didn’t immediately
respond to requests for com-
ment.
—Jacob Bunge
and Brian Spegele
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | A9

OPINION
Behind Hillary’s Iowa Scare BOOKSHELF | By Ronald Bailey

Hillary Clin-
ton’s third-
place finish in
as their top concern.
As for the candidates’ per-
sonal qualities, Mr. Sanders led
Leaving Room
the 2008
Iowa caucuses
upended her
Mrs. Clinton by 3 to 1 among
voters who wanted someone
who “cares about people like
For Chance
POLITICS candidacy. By me” and by 8 to 1 among
contrast, she those most interested in a
& IDEAS
scored a nar- candidate who is honest and
A Crude Look at the Whole
By William
row victory trustworthy. But Mrs. Clinton By John H. Miller
A. Galston
M o n d a y led by an even larger margin (Basic, 245 pages, $29.99)

I
night. Beyond among the 28% of caucus-

SCOTT EISEN/BLOOMBERG NEWS

her having a much-improved
campaign organization, what
changed over those eight
years, and what does it teach
us about the current state of
the Democratic Party?
Let’s begin with what
didn’t change. Mrs. Clinton
did better among women than
men in both contests. She did
24 points better among Dem-
ocrats than independents in
2008 against Barack Obama,
and 30 points better among
Democrats this year. She lost
The state’s Democrats
are significantly more
liberal than they were
when she ran in 2008.
to Mr. Obama by 16 points
among caucusgoers who re-
garded themselves as “very
liberal”—and to Bernie Sand-
ers by 19 points. She trailed
Mr. Obama by 12 points among
first-time caucus attendees, a
group she lost to Sen. Sanders
by 18 points.
And in both races she did
much better among middle-
aged and elderly voters. In
2008 she lost voters 17-29
years of age by 46 points, and
those in the 30-44 bracket by
19 points. She ran even with
Mr. Obama among voters 45
to 64 years old and trounced
him by 27 points among vot-
ers 65 years and older. This
time around she trailed Mr.
Sanders among young adults
by 70 points and by 21 points
In Nashua, N.H., the day after Monday’s Iowa caucuses.
among voters 30-44. She did
better among voters 45-64
than she did eight years ago,
racking up a 23-point edge.
And she garnered 69% of the
elderly vote compared with
just 26% for Mr. Sanders.
Here’s what did change.
Mirroring national trends,
Iowa Democrats and Demo-
cratic-leaning independents
are significantly more liberal
than they were eight years
ago. In 2008, 18% of caucus-
attendees reported that they
were very liberal, 36% some-
what liberal, and 40% moder-
ate. This time around, 28%
were very liberal, a 10-point
jump; 40% were somewhat
liberal, up 4 points; the mod-
erates’ share fell by 12 points
to only 28%. So Mrs. Clinton
edged out Mr. Sanders in a
more left-leaning environ-
ment than she faced with
then-Sen. Obama.
Compared with 2008, on
the other hand, the balance of
caucus veterans to first-time
attendees worked in her favor.
On Monday night, 56% of those
who attended had gone at
least once before, while 44%
had not. Eight years ago, only
43% had attended previously; a
stunning 57% were first-tim-
ers. Mr. Sanders mobilized lots
goers who were looking for a
candidate with the right expe-
rience to be president. And
among the one-fifth of at-
tendees who identified win-
ning in November as their top
concern, Mrs. Clinton beat
Mr. Sanders 77% to 17%. As
the nominating contest con-
tinues, the focus on general-
of new participants, but not election victory is likely to
nearly as many as Mr. Obama intensify.
did. If he had matched Mr. In addition to her strong
Obama’s appeal, he would have ties with minority voters,
scored a handsome victory which will matter once the
over Mrs. Clinton. nominating contest moves past
The largest shift came along the second straight mostly
what has emerged as a major white state, New Hampshire,
fault line for both parties: edu- Mrs. Clinton enjoys another
cation and class. Eight years advantage that is likely to be
ago, Hillary Clinton lost to significant in the long run. She
Barack Obama by 13 points beat Mr. Sanders by 42 points
among voters earning more among caucusgoers (55% of
than $50,000 annually. (Mr. the total) who want the next
Obama did even better among president to continue Presi-
voters earning in excess of dent Obama’s policies.
$100,000, trouncing Mrs. Clin- Not surprisingly, Mr. Sand-
ton by 22 points.) This time, ers led by 55 points among
researchers asked about edu- those who prefer a shift to
cation rather than income, but more-liberal policies. Unfortu-
the two are closely related. nately for him, however, that
Mrs. Clinton fought Mr. Sand- support amounted to only one-
ers to a tie among college third of those who caucused.
graduates and topped him by And nationwide, according to
53% to 39% among caucus- the Pew Research Center, the
goers with postgraduate edu- share of Democrats preferring
cation. a candidate who continues Mr.
Looking ahead, the strengths Obama’s plans and policies
and weaknesses of the two rises to 61%.
Democratic candidates are Unless Mr. Sanders can
sharply etched. Mrs. Clinton change their minds, Mrs. Clin-
prevailed among caucusgoers ton appears well-positioned to
who cared most about the prevail in the end. She will
economy, health care and then face the task of persuad-
terrorism, while Mr. Sanders ing general-election voters
won 60% support among that continuing President
those (27% of the total) who Obama’s policies will produce
identified income inequality the change they say they want.
n 2010, a fruit vendor, humiliated by a policewoman when
he couldn’t pay her a bribe, set himself on fire in protest in
the remote Tunisian town of Sidi Bouzid. Discontent result-
ing from strongman rule, pervasive corruption and a lack of
opportunity for Arab youth had been building throughout the
region for decades. Yet no experts would have predicted that
Mohamed Bouazizi’s fiery death would trigger the Arab Spring
uprisings, the consequences of which are still unfolding.
“Knowing the parts is not equivalent to knowing the
whole,” could be the slogan for economist John H. Miller’s
book on the science of complex systems. In “A Crude Look at
the Whole,” Mr. Miller, citing the events that led up to the
Arab Spring revolutions, argues that societies are complex
systems in which endogenous tensions accumulate so that,
finally, one relatively small event like Bouazizi’s self-immola-
tion provokes dramatic social upheaval.
The book’s title is taken from the observation by Nobel
physics laureate Murray Gell-Mann that it is necessary to
step back from the particularities of individual academic dis-
ciplines in order to get a sense of how technology, econom-
ics, demography and politics interact to create the chal-
lenges that confront humanity in the 21st century.
Mr. Miller, a professor at Carnegie Mellon University, ar-
gues that complexity science—the study of phenomena that
emerge unpredictably from components that function as a
whole—is providing insights to help business, scientific and
political leaders recognize how
interconnected their spheres are
and how to manage them when
they go unexpectedly awry. He
provides thought-provoking in-
sights, but ultimately he claims
too much for this young science.
“We inhabit a world where even
the simplest parts can interact in
complex ways, and in so doing cre-
ate an emerging whole that exhibits
behavior seemingly disconnected
from its humble origins,” observes
Mr. Miller. Examples of this process
include biological evolution, markets, the In-
ternet and even human consciousness itself. Take the Inter-
net. From the relatively simple TCP/IP communications pro-
tocol devised in the 1970s by Vint Cerf and Robert Kahn
arose the vast, elaborate and unanticipated digital network
we now call the Internet. At the time, there were fewer than
200 host computers connected to the U.S. Defense Depart-
ment’s Advanced Research Projects Agency Network, which
was largely used to send emails. In the early 1990s, Tim Bern-
ers-Lee developed the World Wide Web and Marc Andreessen

A Farewell to Entitlement Reform
Ted Cruz en- is now the front-runner. To
gineered his those who think we’re not
Iowa victory done with weirdness, particu-
by coaxing larly the Donald Trump weird-
hard-core ness, at least Mr. Rubio is in
evangelicals the running to become Mr.
to partici- Trump’s main rival.
BUSINESS
pate in Mr. Trump will now have to
WORLD
Iowa’s quirky show he can do some coalition
By Holman W.
caucus pro- expanding too, or he’s likely to
Jenkins, Jr.
cess. His vic- fade. That means putting to
tory hardly rest the fears of Republicans
makes him a shoo-in for the who have something to lose
nomination any more than from chaos in national policy-
Mike Huckabee’s or Rick San- making—who aren’t treading
torum’s did. water and bereft of hope on
But now we know why ev- one hand, or living on Social
ery third word out of Donald Security and Medicare on the
Trump’s mouth in the past other.
week was “evangelical,” pro- Which brings us to the
nounced as if he had been meaning of Trumpism. One of
practicing an unfamiliar locu- his consistent bits of wisdom,
tion in front of a mirror. Mr. voiced last April even before
Trump is a game theorist. He he launched his presidential
clearly understood that shift- campaign, goes like this: “I am
ing evangelical votes to his actually disappointed with a
column from the Cruz column lot of the Republican politi-
was his highest-leverage cians. I am a conservative Re-
strategy for fending off the publican. . . . Every Republi-
Texas senator who had be- can wants to do a big number
come his main threat. on Social Security, they want
Though finishing one and to do it on Medicare, they
two, neither Mr. Cruz nor Mr. want to do it on Medicaid.
Trump comes away with the And we can’t do that. And it’s
aura of a coalition expander not fair to the people that
who can prevail in the more have been paying in for years
diverse electorates down the and now all of the sudden
road, beginning with New they want [it] to be cut.”
Hampshire next week. Marco Mr. Trump is a political
Rubio, who finished third, harbinger here of a new
does come across as a coali- strand of populist Republican-
tion expander, while handily ism, largely empowered by
relegating the rest of the so- ObamaCare, in which the
called establishment candi- “conservative” position is to
dates into the also-ran cate- defend the existing entitle-
gory. ment programs from a per-
Mr. Rubio, to those willing ceived threat posed by a new-
to bet on something resem- style Obama coalition of
bling a reversion to normalcy, handout seekers that includes
the chronically unemployed, minorities) who typically vote
students, immigrants, minori- Democrat are viewed as a
ties and women. threat to the traditional, uni-
This political rationale was versal, “earned,” middle-class
emerging in the 2012 Obama- retirement programs of Social
Mitt Romney race, though not Security and Medicare.
yet fully formed. It surfaced Mr. Obama didn’t help him-
again in the 2013 tea party self, in his phony-baloney bud-
fight over the debt limit, a geting for ObamaCare, when
Kabuki play that allegedly he specified in 2010 that his
threatened national default. new benefit program would be
The Kabuki was driven, recall, financed by cuts to Medicare.
Not only did Mr. Cruz live
to fight another day. The un-
After Iowa, the spoken tea party stance of de-
fending the good old-fash-
populist dog whistle ioned entitlements of “real”
in Republican politics Americans is increasingly, in
dog-whistle terms, what dif-
gets louder. ferentiates one Republican
from another.
Chris Christie, who went
by the demand of Mr. Cruz nowhere in Iowa, did himself
and other tea party types that no favor by dragging Social
ObamaCare be “defunded.” Security and Medicare into
“Ted Cruz left with few every debate, however much
friends after ObamaCare fight those programs need to be ad-
fails,” went a typical headline dressed. Marco Rubio was just
at the time. All the polls as quick to modify any impli-
showed tea party Republicans cation that Republicans there-
the big losers in the show- fore are entitlement reform-
down. Mr. Cruz earned the ers: “We are talking about
enmity that still resonates reforms for future genera-
among many professional tions. Nothing has to change
Republicans today. Most for current beneficiaries. My
Republicans share his opposi- mother is on Medicare and
tion to ObamaCare and his Social Security. I’m against
rhetorical commitment to re- anything that’s bad for my
peal—but because they think mother.”
ObamaCare is bad policy and Welcome to an important
are convinced Republicans new fault line in our slow-
have better approaches to growth, resource-constrained
health-care reform. America. Though many of us
The tea party animus to- believe the entitlement pro-
ward ObamaCare is something grams need to be reformed,
different: Implicitly, such success will come increasingly
means-tested new entitle- to Republicans who pose as
ments that benefit working- “conservative” defenders of
age folks and people (read Social Security and Medicare.
created the Web browser Mosaic. By 1996, there were 45 mil-
lion Internet users. In the years since, the Internet has ex-
panded to 3.3 billion users, radically transforming industry
and the economy.
As an example of how unintended deleterious behaviors
can emerge from interconnected complex systems, Mr. Miller
dissects the May 6, 2010, “flash crash” in U.S. securities mar-
kets. A retrospective analysis concluded that it occurred as a
result of a design flaw in a trading algorithm used by a small
firm located in Shawnee Mission, Kan. The trades orches-
trated by the algorithm inadvertently created a positive
feedback loop that was amplified by high-frequency com-
puter trading in the tightly connected derivatives markets.
All market participants understood how each piece of the
trading system was designed to work but did not foresee
how their interactions could produce the flash crash.
Knowing the facts is not the same as knowing
the future. Who could have foreseen that the
Arab Spring would begin with a fruit vendor?
So what lessons do we learn from this case? Mr. Miller
suggests that “we might not ever be able to fully control such
systems, but we may be able to mitigate their downsides
through the clever introduction of metaphorical firebreaks
such as the circuit breakers that are used in financial mar-
kets.” Unfortunately, readers looking for insights more con-
crete than “metaphorical firebreaks” will be disappointed.
In a more immediately promising area involving complex-
ity science, Mr. Miller describes his work with researchers at
the MD Anderson Cancer Center in Houston to find novel and
effective chemotherapy cocktails. Even fixed-dose mixtures of
the 19 different drugs they wanted to investigate would yield
more than a half-million unique cocktails. So they devised
and applied search algorithms to sort through an initial 20
randomly formulated chemotherapy combinations. They se-
lected the combination that either killed more cancer cells or
used fewer drugs as the template for new test variants cre-
ated by adding different drugs or dosages to it. Iterating this
search procedure over just a couple of hundred mixtures, the
researchers converged quickly on a three-drug cocktail that
was 100 times more effective than a randomly generated one.
That’s wonderful for cancer researchers, but it’s hard to
see how complexity science is much help to current policy
makers or citizens. The author asserts that “effective decen-
tralized decision making may be one of the best new old
ideas to emerge from complex systems.” This observation
acknowledges the plain fact that we human beings are terri-
ble at foresight. Humanity advances economically, technolog-
ically, politically and, yes, morally only through a process of
trial and error. There are no trials without errors.

Notable & Quotable: Oh, the Humanities

From former chairman of
the National Endowment for
the Humanities (2001-09)
Bruce Cole’s “What’s Wrong
With the Humanities?” in the
online publication Public Dis-
course, Feb. 1:
Let’s face it: Too many hu-
manities scholars are alienat-
ing students and the public
with their opacity, triviality,
and irrelevance. A good case
in point is this passage from
Manifesto for the Humanities,
a recent book by the director
of an institute for the humani-
ties at a major US university:
“Writing this book, I came
to see the new scholar subject
as a performative of passion-
ate singularity, hybrid materi-
ality and networked relation-
ality. This is one sense in
which the humanities scholar
that is becoming is possibly
posthuman, and a posthuman-
ist scholar. The locus of think-
ing, for the prosthetically ex-
tendable scholar joined along
the currents of networked
relationality, is an ensemble
affair.” . . .
In some parts of the acad-
emy, such obscurantist writ-
ing is seen as a sign of bril-
In making this argument, Mr. Miller is more or less put-
ting a modern quantitative gloss on the observation of Scot-
tish Enlightenment thinker Adam Ferguson that complex in-
liance, but that’s something I dives into seemingly arcane stitutions are “the result of human action, but not the
never understood. I suppose subjects. There was no more execution of any human design.” They emerge unintended as
I’m very old-fashioned in fervent defender and sup- societies adopt combinations of simple rules aimed at solv-
believing that clear writing is porter of funds for The Com- ing their immediate problems.
the result of clear thought prehensive Aramaic Lexicon In the 18th century, some minor countries on the periph-
and that the use of jargon is or The Sumerian Dictionary ery of Europe happened upon a set of institutions, including
sometimes the lazy way to than I, because these seem- strong property rights, free trade, freedom of religion, press
avoid hard thinking. Whatever ingly obscure reference works freedom and limits on government. The spontaneous results
the cause, too many books advance and enrich our of this combination of rules were a speed-up in technological
and articles written by hu- knowledge of their important innovation, rising incomes and recognition of civil liberties.
manities professors are need- subjects. The problem was, It turns out that decentralized free markets are the most ro-
lessly opaque. Moreover, great however, that many of the bust mechanism so far devised for delivering rapid feedback
numbers of the applications I fellowship proposals asked for on how decisions turn out. There’s no way that complexity
read dealt with amazingly tiny support for projects that did science, for all its ability, would have ever foreseen that.
fragments of the applicants’ neither. They were simply
fields, a sort of atomization of frivolous and added no dis- Mr. Bailey is the science correspondent for Reason and the
inquiry. cernible value to their fields author of “The End of Doom: Environmental Renewal in the
Now, I am not against deep of study. Twenty-First Century.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Wednesday, February 3, 2016 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Happy Iowa Aftershocks Only the Big Boys Pay Less Tax and Can Flee

T
he candidates are off and running in of voters chose immigration as most important, Regarding your editorial “Wash- mately, markets and rational deci-
New Hampshire, but before the shout- well behind the other three. Government spend- ington’s Corporate Purge” (Jan. 27): sion-making by the masses will beat
Johnson Controls’ move has very lit- liberal, top-down desires every
ing gets loud again it’s worth sorting ing was number one at 32%, the economy was tle to do with U.S. corporate tax time—but President Obama, Hillary
through the voter and turnout second (27%) and terrorism rates and everything to do with the Clinton and Bernie Sanders seem un-
data from Monday’s Iowa cau- Encouraging political third (25%). $8.1 billion in profits it currently has able to learn this lesson. Even Chi-
cuses for some early election- news on ethanol Among the immigration- stashed offshore. Reincorporating nese leaders have recognized that
year lessons. There’s some first voters, Donald Trump abroad will allow the company to they can no longer fight a declining
good news for pro-growth Re- and immigration. (44%) and Ted Cruz (34%) did avoid ever paying a dime in U.S. in- stock market. It’s time for leadership
publicans. best while Marco Rubio won come tax on these profits and will that understands markets and basic
Start with King Ethanol, only 10%, well below his totals enable it to artificially shift even economic incentives.
whose throne looks wobbly after Ted Cruz be- among voters who cared more about the other more of its U.S. profits into low-rate DANA R . HERMANSON
came the first Republican in recent memory three issues. This isn’t surprising given the prior- tax havens. Acworth, Ga.
Between 2010 and 2014, Johnson
to win the caucuses while refusing to bow ity that Messrs. Trump and Cruz put on closing
Controls reported just over $6 bil- One is struck by how differently
down before the Iowa ethanol lobby. Corn is the U.S. borders and deporting illegals in the U.S. lion in U.S. pretax income, and it President Obama and Hillary Clinton
Iowa’s leading crop, and some 47% goes to In politics you are what you emphasize. paid a federal income-tax rate aver- view the merger of automotive com-
make ethanol. But immigration clearly wasn’t the killer app aging 12.2% over this period. This is ponents maker Johnson Controls
But this is an industry that exists largely be- in Iowa that Mr. Cruz hoped it would be against lower than the 12.5% tax rate that with Tyco and its “inversion” move
cause Washington decrees that the nation’s gas- Mr. Rubio. The Texan repeatedly threw the “am- Ireland applies to most corporate to an Irish domicile, compared with
oline include an increasing amount of the bio- nesty” charge at his Senate colleague for having profits. how their administration “saved” the
fuel. Republican philosophy rejects mandates voted for the Gang of Eight reform in 2013. Yet The reality is and has been that U.S. automotive industry in 2009.
and subsidies, but every presidential year this Mr. Rubio survived the attack and staged a rally big American corporations pay no- In 2009 the administration gave
principle runs up against ethanol and the Iowa in the final week to come close to beating Mr. where near the 35% tax rate, due 20% of Chrysler to Fiat of Italy with
caucuses. Most Republicans surrender. Trump for second place. to incentives, loopholes and dodges options and goals for Fiat to become
inherent in the tax code. Corporate a majority owner. By January 2014
That’s the path Donald Trump chose, but Mr. Rubio has disavowed the Gang of Eight
profits have soared under Presi- Fiat bought out the remaining
Mr. Cruz said he opposes all energy subsidies effort and now says such a large reform bill isn’t dent Obama, smashing all previous shares held by a United Auto Work-
and mandates, including ethanol. He also ar- possible because Americans don’t trust govern- records. ers trust and acquired the rest of
gued that a free market would be better for ment to police the border well enough. He fa- For U.S. politicians, tax reform Chrysler. Chrysler is now part of
Iowa farmers. For this brazen disrespect he vors incremental reform starting with border would take the form of closing tax Fiat Chrysler Automobiles NV, a
was attacked by Iowa Gov. Terry Branstad, who security. This is politically realistic even if Mr. loopholes to lower overall rates. But Dutch holding company with a tax
called on Iowa Republicans to defeat Mr. Cruz Rubio does sometimes seem to duck and cover big U.S. companies are enjoying domicile in the U.K., and with Italy’s
because he is the “biggest opponent of renew- a little too much. some of the lowest effective tax Agnelli family as the dominant
able fuels” and whose son is state director of Then again, Mr. Rubio has refused to call for rates around, thanks to those breaks, shareholder.
a pro-ethanol group. deporting the 11 million illegals estimated to be and corporations are in no hurry to Similarly, Delphi Corp., the for-
That’s a powerful lobby, but Mr. Cruz pre- in the U.S., and he says they could qualify for change that situation. mer component parts operations of
JOHN S. MITCHELL
GM and at one time the largest
vailed. Perhaps his supporters cared more legal working status (not citizenship) after a Houston
parts maker in the world, was reor-
about other issues, but in any case their votes lengthy process. He also exposed Mr. Cruz’s hy- ganized in bankruptcy. Under Trea-
showed that opposing ethanol subsidies is no pocrisy as a Trumpian-come-lately given the The three Jan. 27 editorials high- sury supervision, one of Delphi’s
longer the third rail of the Iowa caucuses. Texan’s support for an amendment to the Gang light how incredibly frustrating it largest divisions, Saginaw Steering,
We have our differences with Mr. Cruz. But of Eight bill that would have allowed legaliza- must be to be a liberal who can’t was sold back to GM. It was then
by taking the political risk of opposing ethanol tion for millions of illegals. prevent a rational CEO from moving sold to Chinese interests, renamed
mandates, he has liberated future Republican Conservative Iowa is supposed to be the red- the company headquarters overseas, Nexteer, and is now listed on the
candidates from feeling they must first genu- hot center of anti-immigration politics led by a liberal who can’t force rational Hong Kong stock exchange. Most of
flect before corporate welfare that even Al Gore Rep. Steve King, who backed Mr. Cruz. But even young people to sign up for costly Delphi’s other U.S. operations and
now admits was a mistake. in the Hawkeye State immigration doesn’t ap- ObamaCare coverage (“ObamaCare in their UAW workers were also trans-
Arrears”) or Chinese officials who ferred back to GM.
i i i pear to be the presidential litmus test for Re-
can’t prop up Chinese stocks forever LOGAN ROBINSON
Then there’s immigration, which we have publican voters that some on the right have (“Hope for Chinese Stocks”). Ulti- Bloomfield Hills, Mich.
been told by countless voices on the right is the tried to make it. GOP voters are smart enough
driving force behind populist anger against “the to know that reviving economic growth and
establishment,” whatever that is. But according preventing terrorism are higher priorities.
to the Iowa entrance polls, the anti-immigration
rage is overrated.
The immigration debate isn’t over this year,
and on Tuesday in New Hampshire Mr. Cruz
Deficit Has Many Fathers, Uncertain Future
Pollsters asked voters entering the caucus launched another assault on Mr. Rubio. But the Your editorial “The Deficit Rises Accountability Office said: “GAO’s cur-
sites to select the issue that was most impor- Iowa results suggest that the Floridian can neu- Again” (Jan. 26) criticizing President rent long-term simulations continue to
tant to them, offering four choices in the GOP tralize the attack if he isn’t defensive and fights Obama’s deficits in light of the most show ever-larger deficits resulting in a
contest: immigration, the economy and jobs, back. He’d be that much better positioned for recent Congressional Budget Office re- federal debt burden that ultimately
port fails to note some important past spirals out of control.” Since then, total
terrorism, and government spending. Only 13% the general election if he does.
GOP and CBO failures. federal debt has more than doubled.
From 2001-06 Republicans con- Finally, the 2016 CBO report states

Obama’s Democratic Divide trolled the federal government.

Spending increased, on average, 7%
that $1.5 trillion more in deficits are
now anticipated in the next decade

H
per year. Medicare Part D was added. compared to its last report, approxi-
illary Clinton is campaigning as a better The question is why this issue is resonating so We had a discretionary war with Iraq mately half of which is due to (biparti-
heir than Bernie Sanders to sustain much with Democrats this year, and we think Mr. that made our terrorism and financial san) legislation enacted since August.
President Obama’s legacy, but if she Obama gets the credit in two ways. The President problems much worse. With the possi- ALLEN BUCKLEY
wants to know why she’s hav- himself has made income in- ble exception of Ted Cruz, the tax pro- Atlanta
ing such a hard time closing How the President equality an abiding concern posals from the major Republican can-
the deal, she might want to across his time in office, and his didates do not come close to adding In the CBO’s recently posted projec-
blame . . . President Obama.
created Bernie’s followers have come to believe
up (i.e., covering anticipated spend- tions for 2016-26, nominal GDP is pro-
ing). Except for Chris Christie, not a jected to grow 4.11% a year. Net man-
That’s one of the intriguing best political issue. him. “I believe this is the defin- single candidate has proposed any en- datory spending (mostly Medicare,
messages from the entrance ing challenge of our time,” Mr. titlements solutions. Medicaid and Social Security) is pro-
polls of Democratic Iowa cau- Obama said on Dec. 4, 2013. The CBO has a history of being jected to grow 5.32% a year. Unfunded
cus voters. The pollsters asked caucus-goers to Mr. Obama’s other contribution is that his overly optimistic. In its 2008-18 out- liabilities are the greatest social issue
choose one of four issues that mattered most to economic policies have, if anything, widened the look, (identical to the 2016-2026 out- of our time, especially for our children
them in voting for a candidate. Mrs. Clinton eas- income gap. Middle-class income gains have look) it foresaw nothing but real and and grandchildren.
ily won on health care, terrorism, and even the been meager thanks to the historically slow eco- nominal GDP growth every year. The JOHN SCHUYLER
economy and jobs (51% to 42%). nomic expansion, while Americans who own 2008 report said: “Two relatively reli- Aurora, Colo.
But Mr. Sanders won big on the fourth issue: stocks or other assets have seen their wealth and able indicators of a recession . . . imply
a recession in 2008 is likely.” Yet the Shouldn’t there be another column
income inequality, which 27% of voters said was incomes increase thanks to Federal Reserve poli-
CBO’s outlook forecast real and nomi- in your chart showing all the fines,
most important. The Vermont socialist won 61% cies targeting asset prices. nal growth for that memorable year. penalties, etc., that the Obama admin-
of those voters while Mrs. Clinton settled for When a President calls an issue “defining” The U.S. averages a recession every istration (DOJ, EPA, FTC, FCC, SEC, et
34%. This no doubt reflects that Bernie has made and then makes the problem worse, it’s no sur- seven years. The next one is just al.) levied against U.S. corporations
inequality a major theme in his campaign, but prise that some other politician will take up the around the corner, and the Keynesians over the past seven years?
then again socialists have been railing about the cudgel. Mr. Sanders’s political obsession is Mr. will win the day (i.e., large deficits). LESTER BERRY
gap between rich and poor for decades. Obama’s creation. In January 2007, the Government Voorhees, N.J.

Parks and Political Recreation Rauner Is Doing What He Was Elected to Do

O
Regarding the Jan. 27 letter (“Gov. nanced the campaigns of Democratic
ne reason government is so dysfunc- Congress to reauthorize the fund for three years
Rauner Is Not Negotiating in Good politicians in return for decades of
tional is that so much of it is on auto-pi- in the December spending bill. Faith”) from Roberta Lynch, head of favorable treatment. It is easy to
lot, blocked from regular Congressional But now some Senators want to go further, American Federation of State County see why they fear the end of the
review. Now some in the Sen- and the draft of a new Senate and Municipal Employees Council 31: gravy train. Illinois’ state employees
ate want to make that problem Senators want to make energy bill would authorize Illinois’ fiscal problems did not start currently contribute only 6% of
worse by permanently autho- permanent a federal the fund permanently. That’s a with Gov. Bruce Rauner. They have what will be their eventual total
rizing a fund for grabbing pri- status typically reserved for been building for decades under pension payout. In addition, 96% of
vate property in the West. land purchase fund. programs like Medicare and Democratic rule in the state legisla- enrollees in the State Employees’
The Land and Water Con- Social Security and removes ture. The fiscal mess is worse yet in Retirement System are eligible for
servation Fund has existed the program from periodic re- Chicago, which has had a Democratic Social Security payments on top of
since 1965 to “provide recreation opportunities view. The energy bill is sponsored by Lisa mayor since 1931.s their pensions. The Afscme is having
Mayor Rahm Emanuel campaigned trouble drumming up sympathy for
to all Americans,” offering state grants for parks Murkowski (R., Alaska) and Maria Cantwell (D., as a reformer but caved in to the the prospect of a four-year wage
and the like, as well as purchasing property for Wash.), and the permanent fund seems intended teachers union, increasing our prop- freeze or an increase in health-care
conservation, at up to $900 million annually. But to win the support of Democrats who might oth- erty taxes significantly again this costs. Those are conditions that we
$10.4 billion of the $16.8 billion Congress has ap- erwise balk at some of Ms. Murkowski’s fossil- year—to bail out Chicago’s miserably in the private sector face on an an-
propriated for the fund since its creation has fuel provisions. underperforming, union-led public nual basis—and unions don’t finance
gone toward buying private land, which has be- The bill creates a separate $150 million an- schools. our benefits. That door only swings
come a bureaucratic core competency: Nearly nual fund for high-priority maintenance proj- The share per Illinois household of one way.
five in 10 acres in the Western U.S. are federally ects. It’d be better to redirect the original $900 pension debt is estimated to be The governor is not seeking con-
owned, including 80% of Nevada and more than million pot toward upkeep, instead of handing $42,000. For Chicagoans, our com- flict; he is doing what we elected
60% of Idaho. The states had to beg to get even a pay raise to the agencies that let the parks fall bined share of state and city debt is him to do.
said to be a staggering $61,000 per MARYANNE SPINNER
15% of the fund in 2015. into disrepair. The agencies also shouldn’t be
household. Florida and Texas look in- Chicago
Too bad the federal government is far less allowed to annex more acreage until the land on creasingly like better places to live,
competent at managing the more than 635 mil- the books is in good condition.
lion acres it already owns. The National Park The legislation purports to address this by di-
and with better weather to boot.
Our public-sector unions have fi-
CORRECTION
Service’s maintenance backlog tops $11 billion. recting Interior to think really hard before buy-
The Grand Canyon needed $329 million in tune ing more property, taking into account “signifi- Most Croats are Roman Catholics.
ups in 2014, including $200 million for busted cance” and “urgency,” among other subjective Will Obama Do a Jerry Ford? “Getting Away With Murder” (Book-
water pipes that threaten to turn the family criteria that the bureaucracy can easily ignore. shelf, Jan. 29) incorrectly suggested
camping trip into an episode of “Survivor.” The bill also does nothing to block the feds from In “Clinton’s Emails: A Criminal that they are Orthodox.
Upkeep can’t be financed by the conservation using the fund for eminent-domain seizures. Charge Is Justified” (op-ed, Jan. 22),
fund, one reason that House Natural Resources House Republicans aren’t likely to go along former Attorney General Michael Mu- Letters intended for publication should
kasey raises an interesting “what if” be addressed to: The Editor, 1211 Avenue
Chairman Rob Bishop briefly let the fund expire with this land grab, but Senate Republicans
concerning the present attorney gen- of the Americas, New York, NY 10036,
last fall. He’s suggested strict limits on acquisi- ought to block it first. No federal program eral deciding not to prosecute Hillary or emailed to wsj.ltrs@wsj.com. Please
tion, freeing up money for maintenance and dedi- should escape regular review from Congress, Clinton. Another “what if” could be a include your city and state. All letters
cating more cash to state priorities. Environmen- and that’s especially true for a property-seizure full pardon by the sitting president. are subject to editing, and unpublished
talists accuse Mr. Bishop of wanting to sell scheme hiding among the foliage as a parks RICHARD WARRINER letters can be neither acknowledged nor
returned.
Yosemite to Disney, and their lobbying persuaded initiative. Tupelo, Miss.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | A11

OPINION

Rubio’s Rise Amid Trump’s Slump More Must

By Jason L. Riley whom Real Clear
Be Done

S
Politics shows
o, it turns out that you
can’t call Iowa voters
leading by 18
points. We some-
To Expose
“stupid,” skip a debate in how doubt that
Des Moines because you
don’t like the moderators
Mr. Bloomberg, a
billionaire who
Bad Doctors
and still expect to prevail in the could finance his
state’s caucuses. Who knew? own campaign, By Lawrence B. Schlachter

A
Donald Trump’s loss Monday has been reas-
night, which is far more consequen- sured that the study published last week in the
tial than Ted Cruz’s victory, could Democratic front- New England Journal of Medi-
mean a return to Republican nor- runner has every- cine reported that 1% of physi-
malcy in an election year that has thing under con- cians accounted for 32% of paid mal-
been almost freakish. Mr. Trump’s trol. practice claims over the past 10 years.
poll numbers have soared above his But even a Some may spin this as good news,
AARON P. BERNSTEIN/REUTERS

rivals’ for months—the Real Clear weakened Mrs. since almost all doctors can be trusted
Politics average puts him at nearly Clinton could win to meet at least the lowest acceptable
36%, while none of the other GOP against the standard of care. But the ugly truth is
candidates is above 20%—yet he wrong Republican that little is being done to hold the
lost handily in the state where the nominee. Mr. dangerous doctors accountable.
first votes were cast. Trump and Mr. The new study analyzed more than
Thanks to the voters of Iowa, Cruz are more 66,000 claims paid against more than
conservatives awoke Tuesday morn- popular among 54,000 physicians between 2005 and
ing to a political world that made GOP presidential contender Marco Rubio at his caucus-watch party in Des Moines, Iowa, Feb. 1. conservatives but 2014. Researchers noted that the small
sense again for the first time since fare worse than number of bad doctors showed “dis-
Mr. Trump’s rise began last summer. Mr. Cruz, which is the main reason a factor in the coming contests, he Mr. Rubio in head-to-head match- tinctive characteristics,” including
They learned that bluster and inci- he won. Perhaps more impressive, probably damages Mr. Cruz more ups with the former first lady having paid previous malpractice
vility have not become political however, was Mr. Rubio’s strong than Mr. Rubio. among the swing voters in battle- claims. This implied that “the ability to
virtues. Well-attended rallies are no showing in a state that doesn’t play The Republican field is poised to ground states who often decide reliably identify them at an early stage
to his strengths. He wasn’t sup- shrink significantly after New elections. Mr. Rubio polls better could guide efforts to improve care.”
posed to win, only to exceed expec- Hampshire, but there is still a than both GOP rivals among white Put another way, health-care providers
The Donald’s loss was tations, and he did. Mr. Rubio chance that the number of Demo- women, seniors and independents. could eliminate one-third of medical
finished third, one point behind Mr. crats running, perhaps in the guise Among moderates and suburban malpractice—along with patients’ pain
more significant than Ted Trump and five points behind the of an independent, could expand. women, he trails Mrs. Clinton, but and suffering, as well as the added
Cruz’s win as the GOP’s winner. Mr. Trump performed best Hillary Clinton’s narrow victory in unlike Messrs. Trump and Cruz, Mr. costs of corrective surgeries, long-
among caucusgoers who prefer Iowa did nothing to assuage liber- Rubio is at least within striking term care and indemnity payments—
political world finally someone who “tells it like it is,” als who are concerned about her distance. by removing the worst 1% of doctors.
starts to make sense. while Mr. Rubio won voters who weaknesses as the would-be nomi- Among Hispanics, all three Re- The obvious question: Why haven’t
said electability is their top candi- nee. Mrs. Clinton is not worried publicans trail Mrs. Clinton badly, they?
date quality. Put another way, about losing the nomination to Ber- but some of this may be guilt-by-as-
Trump supporters want to make a nie Sanders. She’s worried that sociation for Mr. Rubio. Of the
substitute for traditional campaign- point. Rubio supporters want to he’ll expose her vulnerabilities and three, he is the only one who hasn’t Over the past decade, 1%
ing. Sarah Palin is no GOP king- elect a president. invite others to hijack her corona- gone out of his way to antagonize
maker. And religious conserva- Mr. Trump’s defeat is a serious tion. Hispanics while discussing illegal of physicians accounted
tives—real ones in the mold of blow because a large part of his ap- Last month Mrs. Clinton assured immigration, which means he is for 32% of paid
Mike Huckabee and Rick Santo- peal is that he doesn’t lose. Iowa former New York Mayor Michael better positioned to make inroads
rum—still win the Iowa caucuses. Republicans performed a public Bloomberg, who is weighing an with this fast-growing voter bloc malpractice claims.
Hawkeye voters find Mr. Trump service in puncturing the media- independent White House bid, that should he become the nominee. Mr.
entertaining but not very presiden- generated Trump hype, and future she’ll win the nomination and so he Trump and Mr. Cruz are betting
tial. Many Republicans haven’t coverage of the candidate ought to needn’t run. Since then, we’ve that the GOP can win in November The answer lies at least partially
made up their minds, and among be more balanced. Heading into the learned that nearly two dozen by deepening its appeal. Mr. Rubio in the National Practitioner Data
those tasked with casting the first Feb. 9 New Hampshire primary, Mr. emails on the private server she wants to widen it. Bank, a clearinghouse for information
votes, Donald Trump ranked closer Cruz and Mr. Rubio both have the used as secretary of state were not on medical malpractice that Congress
to the third-place candidate, Marco momentum. But Mr. Rubio is in a only classified but so sensitive that Mr. Riley, a Manhattan Institute established in 1986 to help state
Rubio, than the winner. better position to win over eclectic no portion of them can be released senior fellow and Journal contri- licensing boards police the health-
According to CNN entrance sur- Granite State voters, who are less publicly, even in redacted form. butor, is the author of “Please Stop care industry. The New England Jour-
veys of Republican voters, evangeli- enamored of Mr. Cruz’s social con- And after barely surviving Iowa, Helping Us: How Liberals Make It nal of Medicine study drew on this
cals made up 64% of the Iowa elec- servatism than are Iowans. And to Mrs. Clinton may well lose big in Harder for Blacks to Succeed” database. So did a 2007 report by the
torate, and 34% of them went for the extent that Mr. Trump remains New Hampshire to Mr. Sanders, (Encounter Books, 2014). advocacy group Public Citizen, which
showed that, from 1990 through
2005, “just 2.3 percent of doctors,

A Mosque as Extremist Megaphone having three or more malpractice

payments, were responsible for 32.8
percent of all payments.”
By Steven Stalinsky Jews, Christians and other non-Mus- Maghrabi explained why Jews were ers,” the cleric said. “They are cou- The national database was sup-

P
lims, and praise for al Qaeda, Islamic killed in the Holocaust. “On Pass- rageous.” He added his wish that posed to help states identify danger-
resident Obama on Wednesday State, or ISIS, and other jihadist over,” he said, the Jews “would “Allah soon reward the Islamic ous doctors and prevent them from
will visit a U.S. mosque for the groups. knead the dough for these matzos nation with a second rightly guided harming more patients. But it is
first time in his presidency. Calls for the destruction of the with children’s blood. When this was caliphate.” Destroying “the Jewish virtually useless in holding doctors
According to the White House, dur- U.S. and the West, including prom- discovered, the Israelites were entity”—Israel—could then be accountable because, by federal law,
ing this visit he will “celebrate the ises that Islam will take over the expelled across Europe . . . It got to achieved, he said. none are listed by name. They are
contributions Muslim Americans world, are other common themes. the point where they were burned in Al Qaeda also comes in for praise assigned a random number to protect
make to our nation and reaffirm the On July 24 last year, Sheikh Ahmad Germany.” at Al Aqsa. The day Osama bin their identities.
importance of religious freedom to Al-Dweik—a frequent lecturer at the Such anti-Semitism is familiar at Laden was killed, May 2, 2011, an The Public Citizen study reported
our way of life.” Over the past two mosque and Palestinian cleric, like Al Aqsa. In another sermon there, on unnamed preacher eulogized him. In that Physician No. 33041 had at least
years, in the president’s efforts to the other religious leaders quoted Nov. 28, 2014, cleric Omar Abu Sara an Al Aqsa video uploaded to You- 31 malpractice payments between
counter violent extremism, he has here—said: “The caliphate will come called the Jews—to whom he said Tube, the speaker vowed that de- 1993 and 2005, totaling more than
emphasized the responsibility of “every single vile trait has been at- spite bin Laden’s death, the “nation $10 million in damages. Nine of those
Muslim “scholars and clerics” to tributed”—the “most evil creatures of one billion Muslims will give birth payments were related to “failure to
help ensure that mosques are not Even in leading Islamic to have walked this Earth.” He added to hundreds of millions” of bin Lad- use proper aseptic technique,” which
used as a platform to preach Isla- that “it was the Jews whom Allah ens. Then came a threat to President means the physician did not observe
mist extremism. institutions like Al Aqsa in turned into apes and pigs.” Obama: “You personally gave the the most basic precautionary mea-
Such extremism isn’t limited to Jerusalem, praising Islamist If incendiary sermons such as order to kill Muslims. . . . The day sures to prevent infection.
out-of-the-way mosques where radi- those at Al Aqsa were being deliv- will soon come when you find your- Physician No. 43923 had at least
cal clerics operate in the shadows. It radicalism is common. ered in any Western city, authorities self hanging from the gallows.” 21 malpractice payments between
is occurring in mainstream and lead- would not tolerate them. Over the Our research at Memri indicates 1992 and 2003, including eight
ing mosques world-wide, including past year in Europe, several sheikhs that the hateful rhetoric on display improperly performed surgeries,
at one of the most important reli- to be, and the nuclear bomb will be have been prosecuted or expelled for at Al Aqsa is hardly unique to that three unnecessary surgeries and two
gious institutions in Islam, the Al produced,” adding that this future similarly extremist rhetoric. In Ger- institution—similar incitements can surgeries on the wrong body part.
Aqsa mosque in Jerusalem. Islamic caliphate—will “fight the many, an imam from Denmark who be found at prominent mosques Operating on the wrong body part is
Consider a Jan. 16 sermon at Al U.S. and will bring it down” and spoke in 2014 at the Al Nur mosque and Islamic institutes throughout so egregious that the profession con-
Aqsa by Sheikh Abu Taqi Al-Din Al- “eliminate the West in its entirety.” in Berlin faced criminal charges the world. Our video archive at siders it a “never event,” meaning it
Dari, a Palestinian cleric who called On July 6, 2015, Sheikh Muham- after calling for the killing of Jews, memritv.org contains thousands of should never happen.
for jihad against the West and mad Abed, known as “Abu Abdal- saying: “Count them and kill them to examples. Neither doctor faced disciplinary
Europe, and for the burgeoning lah,” declared that from “the land of the very last one.” Two months ago, A year ago in Washington, D.C., at action from a state medical board,
Islamic State to “conquer Rome, the Prophet’s nocturnal journey”—a he was fined €1,300 ($1,420). Italian, the opening of the Summit on Coun- according to the database.
Washington and Paris.” reference to Jerusalem—“armies will Spanish and Danish authorities have tering Violent Extremism, President Even if doctors were identified in
Despite Al Aqsa’s importance to set out to conquer Rome, to conquer handled similar matters involving Obama urged Muslims to “push the data, as they should be, the public
Islam—it is considered the religion’s Constantinople,” and then he added hateful sermons. back” against extremism in mosques. would still be barred by law from
holiest site outside Saudi Arabia— to the list “Washington and At Al Aqsa, support is also strong He will have an opportunity to re- accessing the records. So vulnerable,
few Westerners are aware of the London.” for jihadist groups. On June 26 last state that message on Wednesday in sick patients sit in the waiting rooms
content of the sermons, lectures and In an Oct. 27 address at Al Aqsa, summer, Palestinian cleric Issam Baltimore. Acknowledging the Isla- of bad physicians without a clue about
lessons offered there. Many of these Sheikh Khaled Al-Maghrabi called Amira praised an ISIS-inspired mist threat, and those who support their poor record of performance.
sermons are posted on the mosque’s for the annihilation of the Jews all attack in the small French town of it, must be part of any realistic at- In most cases, a negligent doctor’s
two official YouTube channels and over the world, providing justifica- Saint-Quentin-Fallavier, southeast of tempt at countering violent extrem- insurance company pays the victim of
have been translated from the Ara- tion by quoting the well-known ha- Lyon, after an Islamist radical ism. malpractice, and the doctor goes back
bic by my organization, the Middle dith (sayings of the Prophet Muham- decapitated his employer and then to work. If he develops a bad enough
East Media Research Institute. mad) of the stone and the tree: “Oh crashed his vehicle, causing an Mr. Stalinsky is the executive di- reputation in one town, he can move
What we have found at Al Aqsa is Muslim there is a Jew behind me, explosion. “The Muslims have given rector of the Middle East Media Re- to a new state and continue practic-
a steady stream of calls for jihad and come and kill him.” Earlier at the rise to ISIS, and to vehicular attack- search Institute (Memri). ing. Unless patients are lucky enough
martyrdom, venomous attacks on mosque, on May 29, Sheikh Al- to live in a state such as Colorado,
where medical malpractice is a
matter of public record, all people

PUBLISHED SINCE 1889 BY DOW JONES & COMPANY

Notable & Quotable have to go on are testimonies on
doctor-review websites.
From a Jan. 28 online editorial Carolina, and Ball State and Notre It’s time for patients and doctors
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp for the Herald-Times of Bloomington, Dame. To surmise any connection to alike to work for real transparency. A
Gerard Baker William Lewis Ind., regarding criticism of a grant the Koch foundation would ruin start would be to identify the doctors
Editor in Chief Chief Executive Officer and Publisher from the Charles Koch Foundation to SPEA’s reputation, as one opponent in the National Practitioner Data Bank
Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT:
an Indiana University professor in said, suggests few reputations should and open the database up to the pub-
Deputy Editors in Chief Ashley Huston, Chief Communications Officer; the School of Public and Environ- be held in high regard. lic. State licensing boards should also
DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; mental Affairs: As an aside, it would be really dif- embrace their responsibility by revok-
Mark Musgrave, Chief People Officer;
Michael W. Miller, Senior Deputy;
Edward Roussel, Chief Innovation Officer;
ficult to excise the influence of Koch ing licenses for repeat offenders.
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, News Operations and Talent; Anna Sedgley, Chief Financial Officer; If all Koch money should be off companies from any university com- Shielding the very worst doctors
Neal Lipschutz, Ethics and Standards; Katie Vanneck-Smith, Chief Customer Officer limits when it comes to research, munity. Their brands include Lycra not only harms patients. It also casts
Alex Martin, Enterprise; Ann Podd, Global
OPERATING EXECUTIVES: most research universities in the fiber worn by thousands of college a shadow on the overwhelming
Production; Andrew Regal, Global Head of Video;
Jessica Yu, Global Head of Visuals
Nancy McNeill, Corporate Sales; nation don’t realize it yet. According women in their yoga pants, Dixie majority of competent, vigilant doc-
Steve Grycuk, Customer Service; to a report from the Charles Koch brand cups and plates that can be tors, and on the reputation of the
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International;
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Foundation from October 2015, the found as a staple in lots of student profession as a whole.
WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, foundation supports programs at 250 housing units and Quilted Northern
Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; colleges and universities in the tissue that’s an inexpensive option Dr. Schlachter, a physician and
Chris Collins, Advertising; Jason P. Conti, Legal; Professional Information Business:
Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; United States. The list includes the for the bathroom. attorney, is the author of “Malprac-
Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head main campuses of 10 universities in While the Koch name sets off tice: A Board-Certified Neurosurgeon
Larry L. Hoffman, Production the Big Ten and regional campuses of alarms about money and influence, Reveals How the American Health
EDITORIAL AND CORPORATE HEADQUARTERS: three others, with only the University they should not drown out this: The Care System Fails to Protect Patient
1211 Avenue of the Americas, New York, N.Y., 10036 of Iowa excluded. Harvard and Yale competence of the research is what Safety and Investigate Negligence,”
Telephone 1-800-DOWJONES
are on the list, as are Duke and North matters most. forthcoming from Skyhorse.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A12 | Wednesday, February 3, 2016 * *** THE WALL STREET JOURNAL.

WORLD NEWS

Movie Sparks Bid to End Honor Killings

Pakistan documentary But the culprits still often go
unpunished because they are
has drawn attention forgiven by the victim or her
from prime minister; family members.
Ms. Obaid-Chinoy hopes the
tradition deeply rooted film will change the legal pro-
vision that allows such for-
BY SAEED SHAH giveness for honor-killing
cases.
KARACHI, Pakistan—A well- “Those who kill their
known female Pakistani film- daughters or sisters don’t go
maker’s new documentary to jail, so people believe that
about honor killings is giving this is not a crime,” said Ms.
impetus to a political effort to Obaid-Chinoy. “That just em-
strengthen laws to protect boldens people to do it.”
women—even before it has In the film, Ms. Qaiser is
been screened here. forced by pressure from her
The practice of honor kill- family, in-laws and the village
ings allows male elders to put to legally pardon her father,
to death women who disobey who is released from jail. Once
them in matters of love and released, her father boasts

SHARMEEN OBAID CHINOY FILMS

marriage. that he has won more respect
The 40-minute movie re- from the community.
counts the story of Saba In the film, he says he shot
Qaiser, whose father and uncle his daughter to restore his
shot her in the face, stuffed honor, adding that his other
her in a bag and tossed her in daughters now won’t dare to
a river in rural Punjab prov- disobey him.
ince, after she ran away to “The law practically
marry the man she loved. Ms. Saba Qaiser, featured in ‘Girl in the River,’ survived an attack by her father and uncle after she ran away to marry the man she loved. amounts to impunity for the
Qaiser, 18 years old at the killer,” said Zohra Yusuf, chair-
time, survived. ings and was committed “to the country. honor killings. But an early re- to try such cases in antiterror- person of the Human Rights
“I will never forgive them,” rid Pakistan of this evil by The politicians will be sponse to Mr. Sharif’s pro- ism courts, where convictions Commission of Pakistan, an in-
Ms. Qaiser says in the film, bringing in appropriate legis- shown the film, “A Girl in the posal shows the practice will are easier and quicker. dependent campaigning organ-
her face marked by the bullet lation.” River: the Price of Honor,” at be difficult to change. She said she was interested ization. “Most of the killers
wound. About three women die the prime minister’s official “There are basic principles, in making a film about honor are members of family and
When the film—directed each day in honor killings residence, in what is to be its of Qisas and Diyat,” or retribu- killings when she saw a brief they end up being forgiven.”
and produced by Sharmeen across Pakistan, according to first screening in Pakistan. tion and forgiveness, said Ha- story about Ms. Qaiser’s har- Ms. Obaid-Chinoy declined
Obaid-Chinoy and set to pre- human-rights groups. Most are The aide said the premier fiz Hussain Ahmed, a former rowing experience in a local to provide a phone number for
mier on U.S. cable network murdered by fathers, brothers hoped the documentary would senator from Jamiat Ulema-i- paper. Ms. Obaid-Chinoy went Ms. Qaiser, saying that while
HBO in March—was nomi- and other family members serve as the “driving force” for Islam-Fazl, one of the two to visit Ms. Qaiser in the hos- she wanted her story to be
nated for an Oscar in January, who feel their reputation has legal changes. “We need all main Islamic political parties. pital. told in the documentary, she
it caught the attention of Paki- been damaged, often because the stakeholders to be on “On those, there’s no question “Saba was very eager to tell didn’t want her contacts
stani Prime Minister Nawaz a woman has refused an ar- board,” the aide said. The is- of any amendment, as they’re her story,” Ms. Obaid-Chinoy passed onto the media.
Sharif. ranged marriage. sue is particularly sensitive from Allah.” said. In the film, Ms. Qaiser is
Mr. Sharif, a veteran con- An aide to Mr. Sharif said because it involves Islamic Ms. Obaid-Chinoy won an Since 2004, attacks on shown living with her in-laws
servative politician who has he planned to convene a meet- laws allowing for retribution, Academy Award in 2012 for women over honor have been in the same community as her
focused more on economic and ing of political leaders from forgiveness and the payment “Saving Face,” a film about treated like regular murder father. She said she no longer
security issues than social across the country this month of “blood money.” women disfigured in acid at- and attempted murder. Before, speaks with him or her uncle.
concerns, said his government to build consensus to tackle Most mainstream clerics tacks by spurned suitors. That such attacks could be de- “They should be shot in a pub-
would work to stop honor kill- the deeply rooted tradition in and politicians don’t condone film helped galvanize Punjab fended as crimes of passion. lic marketplace,” she said.

Xi Jinping Revives a Mao-Era Practice: Forced Confession be meeting with journalists. obtained illegally, and apolo- scandal, foreign companies
“If you handle this well you’ll gized to the Chinese govern- feel obliged to say sorry—
get lenient treatment,” one ment. “It was totally staged,” even if they later regret it.
AGENCE FRANCE-PRESSE/GETTY IMAGES

officer suggested. The mean- says Mr. Humphrey, speaking When a Chinese TV report
ing was clear: He should ad- from his home near London in 2014 suggested that U.S.-
mit his guilt and apologize. after his release last year on based OSI sold expired meat
Groggy as a result of his medical grounds. to fast-food chains, its CEO
medication, he sat handcuffed quickly assumed blame. Now

CHINA’S WORLD in a metal cage while journal-
ANDREW BROWNE ists poked camera lenses at
him to record his words of
contrition.
LONDON—On the day his This kind of humiliation is
police guards collected him well known to Chinese as ji-
for a televised “confession,” antao—self-confession.
Peter Humphrey says, he had Its origins trace back to
swallowed a tranquilizer pill the Soviet Union. Joseph Sta-
after a panic attack during lin used the technique against
the night. imagined enemies during his
The British corporate in- Great Terror. Mao borrowed it
vestigator had been held to torment his own adversar-
along with Yu ies.
Yingzeng, his
Peter Humphrey says his televised ‘confession’ was staged.
with a blend of old-fashioned
socialist values and Confucian
ethics. Foreigners have no im-
munity from this ambitious
effort.
Millions of television view-
ers now regularly watch dis-
traught victims of Mr. Xi’s
T
here isn’t much differ- facing ruin, OSI has changed
ence, he argues, be- its tune. This week, after a
tween his experience Shanghai court fined the com-
and victims of the Cultural pany and sent 10 people to
Revolution forced to walk the prison for selling “inferior
streets wearing dunce caps products,” OSI said the TV re-
and boards around their port was staged.
The jiantao shows are es- necks advertising their Televised confessions have
sentially a joint production crimes. little to do with the rule of
between the state broad- At the time, he and his law that Mr. Xi publicly pro-
caster, China Central Televi- wife hadn’t faced trial. They claims. But they feed into a
sion, and the security police. were later convicted, although narrative that the party is
In recent weeks, a Swedish they maintain their inno- cleansing itself and society of
rights worker and another cence. wrongdoers, burnishing its
Swedish citizen, a Hong A jiantao culture has made own legitimacy as the ulti-

P
American resident Xi Jinping has
wife and revived the practice as
business he goes after corruption
partner, in and dissent in a broad purge
2013 in a of the Communist Party, the
case involving one of their cli- corporate world and nongov-
ents, the drugmaker Glaxo- ernmental organizations. It
SmithKline PLC. Police at the goes hand-in-hand with his
Shanghai No. 1 Detention Cen- efforts to purify modern Chi-
ter had warned him he would nese society by infusing it
campaigns unburden their
souls under duress on the
evening news. Mr. Humphrey
was caught in a crackdown on
malfeasance among multina-
tionals; GlaxoSmithKline was
later fined for bribery. Chi-
nese rights lawyers, social ac-
tivists and journalists have
been similarly paraded.
Kong-based bookseller who a comeback along with other mate arbiter of model social
specializes in often-salacious relics of China’s socialist past, behavior.
works about Chinese leaders, like propaganda icon Lei Whether that strategy is
were hauled in front of the Feng, a selfless soldier who succeeding is far from clear.
cameras. darned socks and carried ma- Chinese audiences widely un-
In the clip that ran on nure until he was killed by a derstand jiantao as political
CCTV, Mr. Humphrey sounded falling telegraph pole. theater, not to be taken too
contrite over charges that he Self-recrimination is on literally. Though for those
profited from personal infor- the agenda at internal party dragged into the public spot-
mation about Chinese citizens meetings. At the first whiff of light, the drama is all too real.

World White House Criticizes

Watch Pyongyang Rocket Plan
BY ALASTAIR GALE Any launch of a space
AND CAROL E. LEE rocket by North Korea could
be seen by other nations as a
SAUDI ARABIA The White House on Tues- covert test of ballistic-missile
day denounced North Korea’s technology because of its simi-
Poet Wins Reprieve
NEDERLANDS POLITIE HANDOUT/ASSOCIATED PRESS

plan to launch a satellite this larity to rocket technology

On Death Sentence month, describing the move as used to deliver warheads.
A court overturned a death a “destabilizing provocation.” U.S. officials say North Ko-
sentence against a Saudi-born News of Pyongyang’s plan rea likely already has the tech-
Palestinian poet convicted of emerged after it sent notices nology to deliver a small nu-
apostasy and instead imposed to two United Nations agen- clear device on an inter–
an eight-year prison term and cies informing them about the continental ballistic missile.
800 lashes. proposed launch. Such notifi- North Korea is banned from
A court in the southwestern cations are typical ahead of testing ballistic-missile tech-
city of Abha ordered the poet, space launches and are in- nology by the U.N., which con-
Ashraf Fayadh, to repent and re- tended to warn ships and air- demned the 2012 launch.
nounce his poetry, his lawyer craft to avoid the area around Pyongyang attempted four
Abdulrahman al-Lahim said. the rocket’s expected path. such launches previously.
Mr. Lahim said his client, 35 DRONE PREDATOR: An eagle attacks a drone in a Dutch police experiment to train the birds to “The international commu- The country is also banned
years old, was innocent and capture drones in areas they are banned. A decision to use the birds will be made later this year. nity would regard a step like by the U.N. from testing nu-
would appeal the latest sen- that by the North Koreans as clear bombs, but this year det-
tence. Mr. Fayadh was first de- came after meetings with So- AUSTRALIA brought by a Bangladeshi just another irresponsible onated a device that it de-
tained by Saudi police in August cialist leader Pedro Sánchez and woman sent into an Australian- provocation and a clear viola- scribed as a hydrogen bomb.
2013 following a complaint that the incumbent prime minister,
Court Backs Canberra backed detention center on Na- tion of their international obli- The U.S. and its allies are
he had cursed Allah and the Mariano Rajoy. Mr. Rajoy, whose On Refugee Detention uru. Lawyers had asked the gations,” White House press seeking strong action by the
Prophet Muhammad, insulted Popular Party won the most Australia’s highest court court to rule the woman’s deten- secretary Josh Earnest said. U.N. in response to that test.
Saudi Arabia and distributed po- seats in parliament but lost its backed the government’s off- tion in a center dogged by accu- A launch could also further In Beijing last week, Secre-
etry that promoted atheism. majority, had said he lacked suf- shore detention of asylum seek- sations of rape and mental tor- inflame tensions with Pyong- tary of State John Kerry and
—Ahmed Al Omran ficient support from other par- ers in Pacific Island nations, ture of inmates was illegal “by yang after it tested a nuclear his Chinese counterpart, For-
ties to form a government. handing a setback to advocates reason that such conduct was bomb Jan. 6. eign Minister Wang Yi, agreed
SPAIN The Socialists could cobble hoping to dismantle the policy. not authorized by any valid law.” “This latest announcement to accelerate conversations at
together a majority with their In a ruling that is likely to be Australian governments since further underscores the need the United Nations on conse-
Socialists Attempt 90 seats, 69 from the far-left watched in Europe, where gov- 2001 have overseen policies of for the international commu- quences for Pyongyang. Wash-
To Form Government Podemos party and the rest ernments are grappling to stem sending asylum seekers to off- nity to send the North Koreans ington wants Beijing’s support
Spain’s king asked the Social- from regional parties. But they a tide of migrants, the High shore detention in Nauru and a swift, firm message that for tougher sanctions, but Chi-
ist leader to try to form a gov- would have to overcome policy Court of Australia rejected an ar- neighboring Papua New Guinea their disregard for the for U.N. nese officials indicated unwill-
ernment, but the push to break differences. Podemos supports gument that offshore detention while their claims for refugee Security Council obligations ingness to follow the U.S. pre-
the impasse from December’s in- allowing Catalonia to hold a ref- of asylum seekers in a third status are assessed, often for will not be tolerated,” U.S. scriptions.
conclusive election faces obsta- erendum on independence. country should be illegal. periods lasting more than a year. State Department spokesman —Felicia Schwartz
cles. King Felipe VI’s request —Matt Moffett The legal challenge was —Rob Taylor John Kirby said. contributed to this article.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
STEVE REMICH FOR WSJ
WSJ.com/NY
Former Partner Testifies
At shooting death trial,
officer gives conflicting
accounts of rescue call;
‘the shot just went off’
BY REBECCA DAVIS O’BRIEN
New York Police Depart-
ment Office Peter Liang used
his right shoulder to push
open the door, stepping into
the pitch-black stairwell of the
Brooklyn housing project, his
gun in his left hand, his flash-
light aloft in his right, the offi-
cer’s former partner testified
Tuesday.
“The shot just went off,”
Officer Shaun Landau told a
jury Tuesday in state Supreme
CLOCKWISE FROM LEFT: LEVI MILLER; LA CHINE AT THE WALDORF ASTORIA (2)
The double garlic Chinese eggplant, above, at Kings County Imperial. The yellow tail with
Szechuan pepper oil, above right, and barbecue duck at La Chine at the Waldorf Astoria.
Chinese Cuisine Goes Upscale
BY SOPHIA HOLLANDER
On-tap offerings at the bar
at Williamsburg’s Kings
County Imperial include beer,
cocktails—and soy sauce.
It’s one of a new wave of
Chinese restaurants trying to
dispel the cui-
FOOD & sine’s reputation
DRINK in New York City
as greasy takeout
by relying on fresh
ingredients, an ambitious
drink selection and upscale
ambience—with prices to
match.
Proponents say it is the nat-
ural evolution of a complex cui-
sine that they say has been
dumbed down for decades in
the U.S. They point to other
ethnic foods that have under-
gone a similar journey in New
York, yielding some of the city’s
most celebrated restaurants.
60°
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Real Feel
9 a.m. 35°
HIGH
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HEAVY Sunrise/Sunset
RAINS 7:04 a.m./5:16 p.m.
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N.Y. Sports Lineup
6:30 p.m.
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8:30 p.m.
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Marquette
@ Seton Hall
For N.Y. sports coverage, see A18
URBAN GARDNER A14 | FOOD & DRINK A16 | HEARD & SCENE A17
Serious Fun
Wry works at the Guggenheim
* * * **
Court in Brooklyn, where Offi-
cer Liang faces manslaughter
and other charges in the No-
vember 2014 shooting death of
Akai Gurley.
Lawyers for Officer Liang,
now 28 years old, have said his
weapon fired accidentally and
that the officer didn’t realize
until later that he had shot Mr.
Gurley, who was unarmed.
Prosecutors allege Officer Liang
acted recklessly, failed to follow
NYPD training and didn’t im-
mediately call for help.
Officer Landau, who testi-
fied for the prosecution under
an immunity agreement, took
the stand at the end of a day
that included tearful testi-
mony from Mr. Gurley’s girl-
friend, who was with Mr. Gur-
“You think about Italian
food 20 years ago in New York.
It was pasta and red-sauce
places, and now you get places
like Babbo,” said David Garce-
lon, culinary director at the
Waldorf Astoria New York,
which in the fall opened La
Chine, a luxury Chinese restau-
rant.
At La Chine, a special menu
for the Lunar New Year to be
offered later this month in-
cludes Lo Hei Yusheng raw fish
salad ($68) served tableside.
But in New York City, en-
trenched habits can die hard,
especially when it comes to
price.
“People have this idea that
Chinese food has to be $5.99
and come with free rice and a
side of wonton soup,” said
Danielle Chang, who founded
the annual Asian food festival
LuckyRice in 2010. “That’s re-
‘Trump Store’ Kiosks
Must Go, City Orders
BY JOSH BARBANEL
Donald Trump’s flagship
property in Midtown was
fined $4,000 by New York City
and directed to remove two
unauthorized “Trump Store”
sales counters from the mar-
ble lobby of Trump Tower.
The mixed-use skyscraper
at Fifth Avenue and East 56th
Street serves as Mr. Trump’s
corporate and presidential-
campaign headquarters, as
well as the home of a Trump
Grill, Trump Bar and Trump’s
Ice Cream Parlor.
Both sales counters sell
Trump-branded merchandise,
from golf shirts to perfume to
Mr. Trump’s books.
At one counter, political
supporters can also make cam-
THE WALL STREET JOURNAL.
ley at the time of the shooting,
and testimony from an NYPD
firearms instructor.
Before the lunch break, ju-
rors were allowed to pull the
trigger of Officer Liang’s un-
loaded .22-caliber Glock. Last
week, a firearms expert testi-
fied that the triggers of depart-
ment-issued firearms are more
difficult to pull than other
guns. On Tuesday, the NYPD in-
structor described safety fea-
tures and police training meant
to prevent accidental firing.
Officer Landau told the jury
that Officer Liang retreated
from the stairwell to the hall-
way after his gun fired. Officer
Landau said he was stunned
by the gunfire and his ears
were ringing.
ally backwards thinking.”
Some question whether ef-
forts to bring higher-quality
dishes can be successful with-
out changing the cuisine be-
yond recognition.
“The stigma is still that Chi-
nese food cannot be, at this
point, at this time, perceived
as a very fine type of cuisine,”
said Jason Wang, president of
Xi’an Famous Foods, which op-
erates 12 restaurants in the
city based on the cuisine from
Xi’an, his hometown in north-
western China.
“The only way to charge
things up is to try things that
are not traditional,” he said.
“But when you do that, does
that still fall under Chinese
food?”
In January, the team behind
X’ian Famous Foods relocated
its sit-down restaurant Biang!
from Flushing to the East Vil-
paign contributions, and buy
“Make America Great Again”
baseball caps and other cam-
paign materials.
Preservationists have long
complained that the installa-
tion of the sales counters and
the removal of a stone bench
in the lobby violated terms of
an agreement between Mr.
Trump and the city. He re-
ceived a zoning bonus in ex-
change for creating a privately
owned public space.
On Monday, a hearing offi-
cer with the city’s Office of
Administrative Trials and
Hearings found that the 40-
foot-long sales counters vio-
lated architectural plans that
were part of a special permit
issued in 1979. The permit al-
Please see TRUMP page A14
Michigan Raids
New Jersey
ARTS | A17 SPORTS | A18
“What the f— happened?”
Officer Landau, 28, asked his
partner, he testified.
“ ‘It went off by accident,’ ”
Officer Landau recalled Officer
Liang telling him. “ ‘I’m
fired,’ ” Officer Liang added,
according to the witness.
For four minutes the two
rookie officers debated how to
report the shot to their supe-
riors, Officer Landau testified.
Neither made a call, he said.
“I was just standing there,
decompressing,” he said.
Officer Landau said he en-
tered the stairwell with his
flashlight out to see if the bul-
let had hit the wall, when he
heard a noise. It sounded “like
a person,” he said, “grunting,
Please see LIANG page A14
lage, with plans for a new
cocktail program and dishes
featuring fiddlehead ferns and
quail eggs.
“We do want to move along
the path of becoming fancier,
becoming a higher price
point,” Mr. Wang said. “But at
the same time for our busi-
ness, at least, we’re unable to
step away too far from where
we started off as a hole in the
wall.”
The opportunity is there,
restaurateurs say. China’s re-
laxed travel policies and grow-
ing wealth has created a new
class of Chinese tourists will-
ing to pay more for quality
Chinese food, some say.
With looser borders, Chi-
nese chefs are also discovering
a range of world cuisines, rein-
vigorating traditional cooking,
said Eddie Schoenfeld, a Chi-
Please see CUISINE page A16
Woodchuck Commotion
WEATHER FORECASTER: Staten Island Chuck couldn’t find his shadow on Tuesday, which means
an early spring, but still faced the glare of bright lights during his annual Groundhog Day outing. A15
Wednesday, February 3, 2016 | A13
Officer Shaun Landau, left, with his attorney, after testifying.
Cuomo, de Blasio
Clash Anew Over
Housing Policies
BY JOSH DAWSEY
A battle over housing policy
is quietly rekindling the feud
between New York City Mayor
Bill de Blasio and New York
Gov. Andrew Cuomo.
The Cuomo administration
wants to add oversight to the
city’s affordable-housing
bonds, a measure the city fears
will slow development and
cause uncertainty among de-
velopers—and imperil the top
item on the mayor’s agenda.
“Everybody in the industry
is extremely concerned about
our ability to operate and how
this is going to change it,” said
Gary Rodney, who leads the
New York City Housing Devel-
opment Corporation, the
agency that finances the cre-
ation and preservation of af-
fordable apartments in the
city. “Who knows what is go-
ing to happen when it goes
through those additional lay-
ers of review?”
The proposed changes to
the bond process follows the
Jan. 15 expiration of 421-a, a
property-tax exemption crucial
to the development of afford-
able housing, after Mr. Cuomo
and the Legislature inserted a
provision requiring labor-union
support for a city deal with the
real-estate community.
After several months of
publicly jousting on issues,
and amid polls suggesting the
public didn’t think much of the
spat, Messrs. Cuomo and de
Blasio cut down on their sharp
exchanges. Now the divide
over housing policy is shaping
up as a new, lower-key conflict
in their fraught relationship.
Mr. de Blasio’s administra-
tion has begun cultivating al-
lies for a push against the gov-
ernor’s proposed rule, talking
to developers about how it
could hurt them and criticiz-
KEVIN HAGEN FOR THE WALL STREET JOURNAL
ing the state bureaucracy. The
mayor also testified in Janu-
ary in Albany against the pro-
posed bonding oversight.
The state says its approval
process for projects isn’t
meant to unfairly punish the
city and it wants to endorse
them quickly. Mr. Cuomo has
previously said he was sur-
prised at the end of 421-a and
wants to help fix the situation.
To be sure, the feud also has
driven both men to press for
liberal policies that have heart-
ened their Democratic base
and angered more conservative
voters in New York, including a
$15 minimum wage statewide
The divide is shaping
up as a new, lower-
key conflict in their
fraught relationship.
months after Mr. Cuomo said
$13 wouldn’t work. Both men
also have announced separate,
billion-dollar packages to ad-
dress homelessness.
But affordable-housing pol-
icy carries a special political
resonance for Mr. de Blasio’s
administration, and aides see
Mr. Cuomo hampering the
mayor’s ability to accomplish
his goals. During his State of
the State speech on Jan. 13,
Mr. Cuomo announced a sepa-
rate statewide plan and said he
only wanted to build more af-
fordable housing in New York.
“I don’t think most people
should or want to worry about
the gossipy machinations be-
tween the governor and the
mayor or talking heads,” said
Jerilyn Perine, who runs the
Citizens Housing Planning
Council, when asked about
disagreements about housing
Please see FEUD page A14
KEVIN P. COUGHLIN/OFFICE OF THE GOVERNOR
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Wednesday, February 3, 2016 * * THE WALL STREET JOURNAL.

CITY NEWS

LIANG Officer Liang’s lawyer, Rob-

ert E. Brown, read aloud from
transcripts in which Officer
Landau reported that his part-
Playing the Hits, With a New Spin
U
Continued from page A13 ner called over the radio that nder the assumption
crying,” coming from the a man had been shot, that a that it’s never too late
stairway below. police officer was involved and to pick up a new skill
“We ran down the stairs,” an ambulance was needed. to impress friends and fam-
Officer Landau testified, where Officer Landau said he ily, and perhaps graduate to
the lighting improved, and wasn’t sure when he had an entirely different, lucra-
then saw a man lying on his heard Officer Liang call in, but tive career, I attended DJ
back on the fifth-floor landing. recalled that at some point school recently.
A woman was on the floor, “he mentioned something It was held at Foxgrove,
crying over him, he said. about accidental discharge.” an electronic music and DJ
While the prosecution has “Your testimony was inaccu- academy on
said that neither officer as- rate,” Mr. Brown said. “You West 29th
sisted Mr. Gurley as he lay dy- don’t realize your partner’s on Street.
ing, or called for help, Officer trial for official misconduct, for My
Landau testified that Officer failing to call an ambulance?” daughters
Liang shouted, “ ‘Oh my God— Office Landau replied yes. had offered
someone’s shot,’ ” after they “But he did, in fact, call an URBAN anecdotal re-
spotted Mr. Gurley. ambulance,” Mr. Brown said. GARDNER porters of

JOHN TAGGART FOR THE WALL STREET JOURNAL (3)

Officer Landau said Officer “Yes,” Officer Landau replied. RALPH high school
Liang called in over his radio, Officer Landau faces admin- GARDNER JR. friends,
“Pink House Post One,” a ref- istrative charges in connection whose ge-
erence to their location in with the incident. He and Offi- nius had
Stairwell A in the Louis H. cer Liang are both on modified heretofore been disguised,
Pink Houses. duty at the NYPD. becoming rich and famous
Officer Landau told the jury When questioned on the spinning records.
that Officer Liang knelt on the stand, Officer Landau ap- So why not me?
ground next to Mr. Gurley. In peared unclear about the exact And I like to think I im-
his opening statement last terms of his immunity agree- pressed Foxgrove’s co-found-
week, Assistant District Attor- ment with prosecutors. ers, David Maurice and Nata-
ney Marc Fliedner said Officer Under cross-examination, lie Lam, with my passion by
Liang “never even knelt” down Officer Landau said he hadn’t being the only one among us
to see what he had done. agreed to cooperate against old enough to identify the
Officer Landau said neither his former partner and didn’t symbol on the Serato Nu-
of them called for an ambu- know why he wasn’t being mark controller they use to Foxgrove co-founder
lance. But later, under cross- prosecuted for failing to call in teach their classes. David Maurice, left,
examination, Officer Landau the shooting over the radio. “A logo?” somebody and above. with a
said he told investigators the “You’re not being charged,” guessed. DJ controller. Right,
day after the shooting that Of- Mr. Brown said. “You have no Not quite. Ralph Gardner Jr.
ficer Liang had tried to call for idea why that is?” The design was that of a uses a music
an ambulance. Officer Landau said no. 45-rmp record adapter, a production device.
small piece of plastic that
one inserts in the middle of a
45-rpm record, allowing it to
be played on LP turntables.
It appeared on the plat-

ANNUAL ter, the part of the controller

that simulates a turntable
and allows a DJ to show off
WATCH & JEWELRY his or her scratching tech-
nique, among other skills.

SALE When I think of DJing,

and how the world in gen-
eral has left me behind,
scratching, where DJs move
January 29th through a vinyl record back and forth
on a turntable and call it
February 13th music, seems as good a place
to start as any.
Except that there’s no vi-
nyl involved these days. The
platter probably isn’t even
necessary. The magic is ac-
complished using software
displayed on large monitors
at Foxgrove’s 12 learning
stations. To my ignorant
eye, all the blinking colors
and wave patterns signifying
instruments and sounds ap-
peared approximately as
comprehensible as the cock-
pit of a 747 if the pilot told
me to land the plane on my
own.
Mr. Maurice used a piece
of electronic dance music to
show me how to program
voices and instruments and
remix songs on the control-
ler.
The problem, at least one
of them, is that I don’t like
electronic dance music.
“It’s an exact tempo,” he
That’s precisely the prob-
lem: I don’t want to do new
fore recording technology
existed, music was 98% in
explained with saintly pa- things with my old records, the amateur space,” Mr.
tience, “128 beats per min- which I suppose limits how Maurice said.
ute.” far I can take this DJ fantasy. People sang and learned
He was referring to why I love them just the way they how to play musical instru-
we would be remixing that are. ments and entertained them-
genre rather than something I’m not quite conceited selves and each other at
more familiar, or even some- enough to believe I can im- home. “As soon as you could
thing that I recognized as a prove the Beatles’ “A Day In record music, people became
song with a beginning, mid- the Life” or Neil Young’s spectators rather than cre-
dle and an end. “The Needle and the Damage ators,” he went on.
Why not the Rolling Done.” If anything, the problem
Stones’ “She’s a Rainbow,” has gotten worse with music
for example? having essentially become
I trace my declining inter-
The problem, at least free. People aren’t “interact-
est in music and dancing to one of them, is that I ing with music other than
the day in the late 1970s that just listening to Spotify,” Mr.
disco displaced rock 'n' roll
don’t like electronic Maurice added.
as the dominant party dance music. Foxgrove’s goal is to do
soundtrack. Electronic dance for music what Instagram
music seems but one more has done for photography.
milestone on that slippery Mr. Maurice’s and Ms. Releasing everybody’s inner
downward slope. Lam’s larger hope is that Ansel Adams. “Music is the
“You’re able to revisit a their students will become, if last frontier to go into the
lot of records from the past,” not the next Grandmaster amateur space,” Ms. Lam
Mr. Maurice explained cheer- Flash, players in the creative said.
fully, trying to pique my in- process, if only after leaving I applaud them. But I’ll be
terest. “You can dive back their corporate jobs for the seeking my bliss elsewhere.
into your old library and do night.
new things with it.” “A hundred years ago, be- ralph.gardner@wsj.com

FEUD opers now say they are less

likely to build affordable hous-
JUSTIN LANE/EUROPEAN PRESSPHOTO AGENCY

ing—and will focus on condos.

More important, they are
Continued from page A13 worried about the new bond
policy. “There’s a real-life rules. Deals in the city would
LOUISE WATERIDGE/ZUMA PRESS

three-dimensional world out need the approval of Mr.

there, and people are relying
on the government.”
Real-estate developers and
people close to Mr. de Blasio
JETSUITE CORE VALUE #5 blame Mr. Cuomo for the expi-
ration of 421-a. Real estate offi-
cials thought when they reached
Cuomo’s economic develop-
ment board and a three-mem-
ber board representing the As-
sembly speaker, Senate
president and governor. City
officials worry both that the
new processes will add extra

DELIVER
ON COMMITMENTS
a deal last year with the city on
the tax abatement—which is
only available in the city—that
it would pass in Albany.
But Mr. Cuomo and the Leg-
islature gave construction
unions a spot at the table, say-
ing they deserved higher wages
time, and any of the three men
could veto a project.
The state says the board
meets frequently and approved
$18 billion in projects last year,
and that most projects get back-
ing. The state says most city
projects are already approved at
Gov. Andrew Cuomo, left, and Mayor Bill de Blasio are often at odds.

money and it decided how to

for some city projects and in
effect questioning the mayor’s
liberal bona fides. Some devel-
We Want to Hear
From You
Have something to say about
an article in Greater New
York? Email us, along with
your contact information, at
gnyltrs@wsj.com. Your letter
spend it. Mr. Rodney, of the
New York City Housing Devel-
opment Corporation, said he
had never discussed such
changes with state officials and
the state level—and that politics was surprised when the budget
haven’t gotten involved. proposal included it this year.
“The reform proposal in- He said many developers are
cluded in the budget will en- now unsure what it will mean.
sure projects being financed by Brad Lander, a city council-
the state’s tax-exempt authority man and former affordable-
have maximum benefit,” said a housing developer, said the
spokeswoman for the governor. new layers of state regulation
Previously, the city was were “poison pills” that trou-
given two allocations of bond bled the affordable-housing de-
velopment community.
Two developers said the
rules simply didn’t make sense.
It is important, these people
said, to have certainty before
beginning projects and secur-
ing financing—and a state ap-
proval at the end for bonds
could chill development.
Mr. Rodney said many of the
affordable-housing developers
aren’t deep-pocketed, and that
approvals sometimes already
take 18 to 24 months.
—Mike Vilensky
contributed to this article.

OUR REPUTATION DEPENDS UPON HOW WELL AND HOW
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TRUMP
Mr. Cohen said he believed the
bench had been removed as
part of approved renovations
when a Gucci store leased
Continued from page A13 space in Trump Tower. The
lowed Mr. Trump to add Gucci store opened in 2008.
105,436 square feet to the 58- But Mr. Cohen said he was
story building in exchange for unable to find any permits or
public spaces in the building. plans justifying the change.
“An examination of the ref- When a previous violation
erenced plans shows the words,
‘marble bench seating,’ printed
for a sales counter in the
lobby was issued in 2006, Mr.
in the area currently occupied Trump paid the fine but didn’t
by the right counter,” wrote the remove the counter.
hearing officer, Susan Brand. “The space deserves a
“The area currently occupied bench for the public,” said Jer-
by the left counter is shown to old Kayden, a professor of ur-
be an unoccupied space.” ban planning and design at the
Michael Cohen, special Harvard University Graduate
counsel to Mr. Trump, didn’t School of Design and an advo-
respond to requests for com- cate for privately owned pub-
ment. At a hearing Thursday, lic spaces.
At the hearing, Mr. Cohen
said that the Trump Organi-
zation is in the process of
creating other public spaces
in the building, including one
on the third floor of a five-
story atrium, which will have
seating near a “plaque in
honor of veterans.”
But the judge noted that
creating other spaces
wouldn’t diminish the obliga-
tion to comply with the per-
mit.
“We had a strong case, and
we’re pleased that the viola-
tion we issued has been up-
held,” said a spokesman for
the Department of Buildings.
“If the kiosks are not re-
moved, further enforcement
actions will be taken.”
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
With No Mayor
In Sight, Chuck
Braves Shadow
BY MARA GAY
New York City Mayor Bill de
Blasio was at a safe distance
Tuesday morning, en route
from Iowa, but Staten Island
Chuck still seemed anxious.
Then the groundhog heard
some words of encouragement.
“He’s not here!” said the
city’s public advocate, Letitia
James, referring to Mr. de Bla-
sio, who dropped a groundhog
two years ago at the same cer-
emony at the Staten Island
Zoo. “You’re safe with us!”
Chuck then emerged from
his thatched-roof home at the
zoo and began to roam around
a Plexiglas-walled enclosure.
Cheers erupted from some 200
people gathered to watch.
And so went Groundhog
Day on Staten Island this year,
skipped by Mr. de Blasio as he
returned from Iowa, where he
campaigned for Hillary Clin-
ton. Events took a dark turn
here two years ago when Mr.
de Blasio accidentally dropped
the squirming groundhog as
schoolchildren gasped. That
groundhog later died.
“Poor Chuck. That was sad,
what happened to him,” Patri-
cia Lopez, 45 years old, said as
she waited to see the new
groundhog, also named Chuck.
Ms Lopez said she didn’t mind
that the mayor wasn’t there.
KEVIN P. COUGHLIN/OFFICE OF THE GOVERNOR
Staten Island Chuck, safe in
the arms of a zoo handler.
Comprehensive
heart and
vascular care
for you
THE LAUDER FAMILY
CARDIOVASCULAR
AMBULATORY
CENTER OF MOUNT
SINAI HEART
For you. For life.
* * * *
“It’s probably for the best,”
she whispered with a smile.
A necropsy showed the ani-
mal died from injuries related
to a fall. The U.S. Department
of Agriculture cited the zoo for
allowing an “untrained han-
dler” to hold the groundhog.
Zoo officials changed the cere-
mony last year, barring may-
ors from holding the animal.
Ed Burke, the deputy bor-
ough president, who served as
the master of ceremonies, said
there was “no need to pray
while the mayor was away.”
Turning to the young chil-
dren in the audience, Mr. Burke
asked what they knew about
the history of the ceremony:
“How many times has the
groundhog bit the mayor?”
“Once!” the children an-
swered. Mr. de Blasio’s prede-
cessor, Michael Bloomberg, sus-
tained such an injury in 2009.
Mr. de Blasio’s absence
seemed to suit most people at
the zoo just fine.
“It’s safer for the groundhog.
Maybe it’s safer for New York,
too,” said Peter Schultheis, a
59-year-old legal assistant, who
wore a groundhog-themed hat.
And yet, others said the
mayor missed an opportunity
to show up to an event that is
a tradition on Staten Island.
“It’s not doing anything to
help his image,” said Laura Wil-
liams, 35, who along with her
husband took their 5-year-old
daughter, Ella, to the ceremony.
Headlining the event this
year was Lt. Gov. Kathy
Hochul, along with Ms. James,
city Comptroller Scott Stringer
and Staten Island District At-
torney Michael McMahon.
None of them was bitten,
and Chuck, who predicted an
early spring, wasn’t dropped.
But jokes abounded.
“I’m here because there had
been rumors of foul play in
the past,” Mr. McMahon said.
CITY NEWS
Parents of Slain Teen Call for Action
SAD ANNIVERSARY: Four years after her son was killed by a police officer, Constance Malcolm and
other family members rallied at New York City Hall Tuesday to demand that the officer be fired.
Ramarley Graham, 18 years old, was shot in his Bronx home during a drug investigation.
Greater
New York
Watch
NEW YORK CITY
Ex-Officer Promoted
Prostitution: Officials
A former New York Police De-
partment officer was charged
Tuesday with ferrying women to
hotels throughout the area to
engage in prostitution, authori-
ties said.
Eduardo Cornejo, 33 years old,
was observed transporting at
least 10 different women to mo-
tels in Long Island, New Jersey
and elsewhere, according to the
criminal complaint unsealed in
Brooklyn federal court.
Wednesday, February 3, 2016 | A15
Top Earners
Are Targeted
In Proposed
Tax Increase
BY ERICA ORDEN
Many New Yorkers who
earn more than a million dol-
lars a year would see a tax in-
crease under the terms of a
proposal introduced Tuesday
by Democratic Assembly
Speaker Carl Heastie.
The proposal, which will
face significant resistance in
the Republican-led Senate,
KEVIN HAGEN FOR THE WALL STREET JOURNAL
would broaden the state’s
current top tax bracket to ap-
ply to all filers, including tax-
payers who file jointly as a
married couple, who earn $1
million or more annually.
That bracket, which carries
an 8.82% marginal tax rate,
now applies to singles who
earn more than $1 million,
head of household filers who
earn more than $1.5 million
and joint filers who earn
more than $2 million.
Mr. Heastie’s proposal
would also establish two new
tax brackets for top earners:
a 9.32% rate for those making
Mr. Cornejo was fired from the broadcast Sunday, June 12 on $5 to $10 million, and a 9.82%
NYPD in January, authorities said.
He was arraigned Tuesday
CBS from the Beacon Theatre.
—Pia Catton
rate for anyone earning more
than $10 million. And it
night and a bail hearing was set
for Wednesday. His attorney de- NEW JERSEY
would reduce taxes for the
lower and middle class by in-
clined to comment.
—Pervaiz Shallwani
Defendants Want creasing tax credits for the
poor and by cutting the tax
Bridge Case Dropped rate for married joint filers
BROADWAY The two defendants in the earning between $40,000 and
George Washington Bridge lane- $150,000 to 6.25% from
Late-Night’s Corden closing case are asking a judge 6.45%.
To Host Tony Awards to toss out the charges. On Tuesday, Senate Major-
James Corden, of “The Late In court papers filed late Mon- ity Leader John Flanagan, a
Late Show,” will host the 2016 day, attorneys for Bill Baroni and Republican, said his confer-
Tony Awards, organizers an- Bridget Kelly argued impeding the ence would block the pro-
nounced Tuesday. flow of traffic isn’t a civil rights posal in that chamber. “We
Mr. Corden won a 2012 Tony violation. They also claim the don’t support raising taxes or
for his comic role in “One Man, prosecution is hampering their asking hardworking New
Two Guvnors,” and he has defense by not sharing evidence. Yorkers to dig deeper into
hosted CBS’s “The Late Late An indictment unsealed last their pockets to pay more.”
Show” since March 2015. The year charges them with wire At a news conference in
breakout hit from his late-night fraud and civil rights violations Albany on Tuesday, Mr.
show has been the viral-video for allegedly orchestrating the Heastie defended his plan.
series “Carpool Karaoke,” in 2013 bridge lane closures to cre- “It’s not just about raising
which he picks up celebrities in ate traffic jams to punish a revenue. It’s about tax cuts to
his car and sings along to their mayor for not endorsing Gov. middle-class families and
songs with them. Chris Christie’s re-election. lower-income families,” he
The Tony Awards is set to be —Associated Press said.
The Lauder Family Cardiovascular Ambulatory
Center, in honor of Valentin Fuster, MD, PhD, and
generously supported by Ronald S. Lauder,
Leonard A. Lauder, and their families, is located
at The Mount Sinai Hospital—one of the top ten
hospitals in the nation for cardiology and heart
surgery. Together, our unique team of more than
40 leading cardiologists and vascular specialists
offer each patient one-stop, personalized, and
holistic cardiovascular care in one state-of-the-art,
20,700-square-foot home. Our comprehensive
outpatient services include:
 Prevention & Wellness  Heart Failure &
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 Cardiac Imaging  Vascular Medicine
 Cardiac Rehabilitation & Surgery
The Mount Sinai Hospital
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New York, NY 10029
Call: 1-855-MSHEART
Visit: mountsinai.org/LauderCenter
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Wednesday, February 3, 2016 * * THE WALL STREET JOURNAL.

FOOD & DRINK WEDNESDAY

LA CHINE AT THE WALDORF ASTORIA

Star anise and soy-flavored foie cherries, above, at La Chine at
the Waldorf Astoria, left. The Copper Well Street noodles, below,
at Kings County Imperial, bottom.

DANIEL KRIEGER
New York’s Chinese Food Revolution

Continued from page A13
nese food expert who opened
RedFarm in 2011, a restaurant
that helped usher in New
York’s farm-to-table Chinese
movement.
But that cuts both ways, he
said. Chinese chefs “can make
more money in China now
than they can here,” Mr.
Schoenfeld said. And “they’re
appreciated more” in Hong
Kong or Taiwan.
When La Chine was search-
ing for chefs, management in-
terviewed about 100 candi-
dates for 14 chef jobs.
“That skill is just not here,”
Mr. Garcelon said.
Upscale Chinese food is
hardly new in the city. A crop
of elite Chinese restaurants
quickly proliferated, becoming
most Americans’ connection to
the cuisine.
When it opened in the West
Village, RedFarm positioned it-
self within a broader food
movement that “starts off with
the premise that really good in-
RedFarm’s idea is
that ‘really good
ingredients make for
really good food.’
gredients make for really good
food,” Mr. Schoenfeld said.
An instant smash, the res-
taurant has since expanded to
the Upper West Side, added a
“There’s kind of this little
revolution in higher-end Chi-
nese food that’s slowly start-
ing to take place,” Mr. Schoen-
feld said.
In 2013, Jonathan Wu, a for-
mer line cook at Per Se, and
his partners opened Fung Tu
with a menu inspired by Mr.
Wu’s mother’s Chinese-Ameri-
can cooking during his child-
hood in Connecticut, family
stories and old Chinese cook-
books.
A relative’s memory about
eating smoked black dates on
the streets of China evolved
into Fung Tu’s smoked-and-
fried date, stuffed with duck
confit.
Efforts to adopt a more up-
scale approach can lead to
LEVI MILLER
Chicken: $24 at Kings County
Imperial. Whole barbecue
duck: $70 at La Chine.
But the dishes barely re-
semble their takeout counter-
parts. At Kings County Impe-
rial, the soy sauce comes from
a third-generation family
brewery in China that sun-fer-
ments the product; tapping the
soy sauce prevents oxidation,
they said. They harvest Chi-
nese herbs and vegetables in
their backyard garden.
For years, Chinese food was
a guilty pleasure for New York-
ers. “It’s greasy, it’s starch-
laden, it’s gloppy,” said Joshua
Grinker, Kings County Impe-
rial’s chef and co-owner. “You’d
be like, ‘OK, now I don’t need
to do that for another month

KATIE BURTON
opened in the late 1960s and separate restaurant dedicated sticker shock. Vegetable fried because that was disgusting.’
early 1970s, including Shun to Peking duck and is planning rice: $16.95 at RedFarm. An That’s the renaissance—it’s not
Lee Palace. But takeout places a London expansion. egg roll: $13 at Fung Tu. Garlic disgusting. It’s amazing.”

ing were all updated in the reno-
The Feed vation, which cost “north” of
$500,000, co-owners David Za-
blocki and Evan Giniger said. The
terrazzo floor was restored and
the ovens refurbished. A glass
day. 90 Washington St.; clinton-
hallny.com
Reserve a table at Gotham
West Market, on the far west
of Midtown, for $100 per hour
(email events@gothamwestmar-

The New A Kossar’s Comeback

For months, Lower East Sid-
wall now separates the bakery
from the sleek public space, en-
abling customers to peer
through.
ket.com). The price might seem
steep, but it guarantees a table
at the food hall, where some
vendors are offering special Su-

Anti-Corruption ers have anxiously eyed the

brown paper covering the win-
dows at Kossar’s, the famous bi-
“While 99% of our work was
building this store, nobody
cares,” Mr. Giniger said. “It’s the
per Bowl packages. A case in
point: Genuine Roadside will
feature a Super Bowl box

Landscape aly store founded in 1936.

On Friday, the bakery will fi-
nally reopen with an expanded
menu, a modernized interior and
a new line of packaged products,
including custom cream cheese.
Bialys will rise 10 cents, to $1
T U E S D A Y, F E B R U A R Y 2 3, 2 0 1 6 each, and there are new fla-
vors—olive tapenade, whole
8. 3 0 A M – 1 0. 3 0 A M E S T wheat and apple cinnamon—and
spreads, including almond butter
and specialty cream cheeses like
C O R E : club jalapeño caper, horse radish and
pickle and everything bagel
6 6 E. 5 5 T H S T R E E T ($4.75 for 8 oz).
A new grill counter will serve
N E W Y O R K, N Y 1 0 0 2 2 up breakfast sandwiches, challah
or babka French toast and
made-to-order pletzel pizzas.
There are also sandwiches like
the Yenta ($9.75), with whitefish
The U.S. Department of Justice introduced major salad, pastrami salmon, lettuce,
changes to its anti-bribery enforcement, with shaved celery, tomato and red
onion. While there is no pork in
new guidelines and a focus on high-impact cases. the store, they developed a dou-
Join our panel of government decision makers ble-smoked molasses-cured
and industry executives as they discuss the new salmon reminiscent of bacon.
The wiring, roofing and vent-
anti-corruption landscape.
last 1%—what does my bialy or
bagel taste like—is all anybody is
going to care about.” 367 Grand
St.; 212-473-4810
—Sophia Hollander
Super Bowl Specials
While no New York teams
made it to this year’s Super
Bowl, there are still plenty of
ways for New Yorkers to cele-
brate game day. A number of
restaurants, bars and food mar-
kets are offering special items
and packages. Among those that
caught our eye:
Clinton Hall, a beer hall in
lower Manhattan, has unveiled a
20/20 menu—choose from one
of 20 burgers and a beer from a
list of 20 craft brews. Burger
choices include fun options, such
as the Truffle Shuffle (with
black truffle aioli) and the
Cheeto Burger (with—what
else?—Cheetos). The 20/20
menu will continue after game
($59.93) with 16 mini classic
burgers or mini fried chicken
sandwiches, plus fries. Patrons
are welcome without reserva-
tions on a first-come, first-
served basis; items from market
vendors can also be ordered to
go. 600 11th Ave.; gothamwest-
market.com
New Jersey bakery Ava’s
Cupcakes has put together a
menu of 12 game-day inspired
cupcakes, including some fla-
vored with beer (as in Caramel
Stout and Corona & Lime variet-
ies). The menu also features a
Sweet & Salty cupcake—a choc-
olate cupcake with a potato chip
baked inside. 20 Wall St., Rock-
away, N.J.; avascupcakes.com
—Charles Passy
Notice to Readers
Lettie Teague is away. The
Uncorking the City column
will resume next Wednesday.

Reserve your space at

dowjones.com/corruption-landscape
Space is limited to this exclusive event. RSVP today.
STEVE REMICH FOR THE WALL STREET JOURNAL

© 2016 Dow Jones & Co., Inc. All rights reserved. 3AO1490

On Friday, Kossar’s will reopen with an expanded menu, a modernized interior and a new products.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
‘Beagle Boys,’ above, and ‘Popular Opposites: Small and Big,’ above right, from Fischli and Weiss’s ‘Suddenly This Overview,’ at the Guggenheim starting Friday. Below right, ‘Rat and Bear (Sleeping),’ from 2008.
Fischli and Weiss: Art That Stays Playful
BY SUSAN DELSON
To understand what drives
the work of Swiss artists Peter
Fischli and David Weiss, it
helps to leave the usual art-
world concepts behind.
Instead, it might be more
useful to conjure up a combi-
nation of theoretical physicist
Stephen Hawking and cartoon-
ist-inventor Rube Goldberg.
Then throw in a Marxist econ-
omist and a touch of the boy
down the block who likes to
strap lizards to bottle rockets
and never stops asking “what
would happen if…?”
Take, for example, “The
Way Things Go,” one of the
duo’s most admired works. A
30-minute fantasia of cause
and effect, the 1987 cult-clas-
sic film documented a series
of chain reactions involving,
among other things, a flotilla
of tires, controlled chemical
reactions, languidly twisting
garbage bags and furiously
steaming teakettles.
The film embodies the pen-
etrating, yet playful spirit of
discovery in the duo’s art,
which gets its first major New
York museum retrospective,
“Peter Fischli David Weiss:
How to Work Better,” at the
Solomon R. Guggenheim Mu-
seum, starting Friday.
In addition to “The Way
Things Go,” which will run
continuously on two large
screens on the rotunda ramp,
some 300 works are in-
cluded—a dizzying array of
Arty Crowd Comes Out for Library
Though the librarians who
work there might not appre-
ciate it, it would be kinda
fun to move into the New
York Public Library for the
Performing Arts up at Lin-
coln Center.
First of all, we’d have a lot
more square footage than in
our current apartment.
And second—and probably
more impor-
tant—we’d
have all the
time in the
world to watch
any and all of
MARSHALL the archived
HEYMAN performances
we’d like.
It is safe to
say that many of the guests
at Monday’s 50th anniver-
sary gala for the institution
feel the same way. Although
most of them probably have
nicer apartments than we
do, and some of the high-
rolling donors may have
homes that are nicer than
even the library.
A lot of members of the
performing arts community
came out to this event,
which was held in the Ce-
leste Bartos Forum at the
New York Public Library’s
Stephen A. Schwarzman
Building on Fifth Avenue.
Among them were Patricia
Clarkson; “Chicago” director
Rob Marshall; Christine Ba-
ranski; Christine Ebersole;
Julie Taymor; Michael Cerv-
eris; Joel Grey; choreogra-
pher Bill T. Jones; ballet
dancer Leanne Cope; Anna
* * * *
sculptures, drawings, photo-
graphs, slide projections and
videos that explore wide-rang-
ing themes of art, life and the
meaning of work.
If there is a common thread
among the works, it is the art-
ists’ endless fascination with
the banalities of life, from
dog-food bowls to sewer
maintenance, their enduring
love of everyday objects as the
stuff of art, and an entrancing
sense of just fooling around.
One work shows the
artists’ alter egos
napping in the midst
of the museum.
“Where the brilliance really
lies with Fischli and Weiss is
that they make it all seem so
casual—that it’s this lackadai-
sical, fun activity,” said the
show’s co-curator, Nancy
Spector, the museum’s chief
curator and deputy director.
In fact, she said, “it is so in-
credibly precise, choreo-
graphed, calibrated, analyzed.”
The opening work, “Rat and
Bear (Sleeping)” from 2008,
sets the show’s subversive
tone, riffing on the artists’
penchant for what they called
the deliberate “misuse” of
time.
The scruffy, vaguely entre-
preneurial animal duo, meant
as stand-ins for the artists, are
nestled on a packing blanket
Deavere Smith and Jane Al-
exander.
They came in support of a
panoply of honorees: the
philanthropists Lewis B.
Cullman and Barbara G.
Fleischman; dancer Mikhail
Baryshnikov; actress Angela
Lansbury; and opera singer
Jessye Norman, who was un-
able to attend. Ms. Taymor
accepted the honor on her
behalf.
ARTS & ENTERTAINMENT
and, thanks to a pair of small
motors, breathe softly as they
slumber.
“It’s a show called ‘How to
Work Better,’ and the first
thing you see is the alter egos
of the artists sleeping in the
middle of the museum,” said
co-curator Nat Trotman, the
Guggenheim’s curator of per-
formance and media. “It’s
lovely.”
“Mostly we define work as
something when you are pro-
ductive,” noted Mr. Fischli in a
conversation at the museum
last week. “But there is also a
kind of work outside of being
productive.”
That second definition
might be said to apply to his
33-year-long collaboration
with Mr. Weiss, and the hours
they spent in ostensibly un-
productive conversation of
one kind or another.
After they first met in
Zürich’s punk-music scene in
the late 1970s, the two began
going to art shows together,
hanging out in bars and talk-
ing, said Mr. Fischli. Long con-
versations about art and ev-
erything else ultimately
formed the basis of their cre-
ative collaboration: “Half of
the day in the studio we were
sitting and talking about
things.”
The dialogue continued, he
said, until Mr. Weiss died in
2012.
Their first collaborative art
project came with the 1979
“Sausage Series,” 10 photo-
HEARD & SCENE
The evening was raising
funds so that the archives—
the original production of
“Sweeney Todd,” for in-
stance—“will be preserved
and widely available in the
future,” said Anthony W.
Marx, the president of the
New York Public Library.
Much is being digitized; oth-
erwise, he explained, every-
thing is “turning to vinegar.”
The actress Tovah Feld-
Wednesday, February 3, 2016 | A17
PETER FISCHLI AND DAVID WEISS/FISCHLI WEISS ARCHIVE, ZÜRICH
STEVE REMICH FOR THE WALL STREET JOURNAL (2)
start of the series “Suddenly
This Overview” that the cre-
ative back-and-forth solidified
into an enduring partnership.
A wry, highly subjective pan-
orama of human knowledge
and experience, the series in-
cludes some 600 individual
works, rendered in the delib-
erately amateur medium of
unfired modeling clay.
Close to 170 are on view at
the museum.
Wandering among the
small forest of pedestals, one
might find such playful tab-
leaux as “Snow White and
Rose Red Confronted with the
Dwarf’s Problem” (his beard is
stuck under a fallen log) not
far from “A Copy of Jack Ker-
ouac’s Typewriter” or “Seven
Aliens Marvel at Stonehenge.”
As an active collaborator
on the show’s installation, Mr.
Fischli has worked with cura-
JASON WYCHE/PUBLIC ART FUND, NY
tors to fine-tune selection and
placement of the works.
As the installation took
shape, he came to appreciate
how the views across the ro-
tunda enrich one’s experience
of the show, which is orga-
nized more by themes than
chronology. These cross-views
Outside the museum, a mural at the corner of Houston and Mott allow works in the same con-
streets recreates the artists’ 1991 ‘How to Work Better,’ adapted ceptual “family” to be seen
from a motivational list found in a Thailand factory. In addition, from multiple perspectives.
the duo’s 2001 video ‘Büsi’ (Kitty) screens at 11:57 p.m. nightly in Normally, he said, an ex-
Times Square through February. hibit moves in a line, with the
start and end points far apart.
graphs of scenes assembled and Styrofoam, a trip to the “But on a spiral, you come
from bits of food and house- carpet shop showing deli cold back,” he said. “Or maybe
hold items—the sinking of the cuts stacked like Persian rugs. you’re just above it. This
Titanic using a plastic bottle It wasn’t until 1981, and the makes it super interesting.”
ARIA ISADORA/BFA (3)
Sen. Charles Schumer with actress Angela Lansbury, who was honored at the New York Public
Library Performing Arts gala. Sting performed at the end of the evening.
shuh, who most recently ap- come us, after they make us up short. I say, ‘What am I
peared in a very funny epi- check our bags.” doing here?’ I guess I man-
sode of “My Crazy Ex- She explained her connec- aged to squeak out a few
Girlfriend” as the title tion to Mr. Baryshnikov in- numbers from time to time.”
character’s overbearing volved renting an apartment “I’m intimidated,” Mr.
mother, was pretty punchy he shared with Jessica Baryshnikov said of being in
as the party’s master of cer- Lange: “Various portions of the same company as Ms.
emonies. his wardrobe were around. Lansbury and Ms. Norman.
“My name is Tovah Feld- Of course, they had moved “I can imagine them as the
shuh and my Hebrew name to other quarters.” mighty lionesses standing
is Tovah Feldshuh,” said Ms. As for Ms. Lansbury, “I’ve guard outside the building
Feldshuh, who added that had the honor of existing in and I am a little fly buzzing
she was wearing a dress of this era with her and the around their ears.”
her mother’s that had been honor of losing two Tony He described putting to-
modeled after a dress Jackie awards to her.” gether his own archives for
Kennedy Onassis had worn. Though the evening felt the library as “truly strange,
Ms. Feldshuh said she has long, ending with a special but who can complain?”
spent much time at the Per- performance by Sting, both He imagined in 25 years
forming Arts Library, includ- Ms. Lansbury and Mr. Bary- someone taking a look at his
ing a trip looking for infor- shnikov were a delight. work in the library and
mation on Sarah Bernhardt. “I’ve spent 73 years in wanting to do something
“I found footage of Sarah New York. New York is my similar.
Bernhardt without her leg,” town. New York is the place I “Or more likely they will
said Ms. Feldshuh. At the flowered,” said Ms. Lans- say, ‘S—, I can’t do better. I
center, the librarians “treat bury, who is 90. “To be a want to do something com-
us like family and they wel- tiny part of this brings me pletely different.’”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A18 | Wednesday, February 3, 2016 * * THE WALL STREET JOURNAL.

SPORTS
Plucking Crops From the Garden State
Michigan becomes the
latest program to plunder
New Jersey’s most prized
high-school football talent
BY ANDREW BEATON

When Kareem Walker decided in

December that he would attend the
University of Michigan, he called up
his new football coach on FaceTime
during his announcement.
“You’re a nugget of gold in our
eyes,” Jim Harbaugh told the prized
running back during the video call,
audible to everyone because of
Walker’s microphone.
If Walker, who starred for DePaul
Catholic High School in Wayne, N.J.,
is a “nugget of gold,” then the state
of New Jersey has become Har-
baugh’s personal gold mine. The Wol-
verines’ 2016 recruiting class already
includes five commitments from the
Garden State, including some of its
most coveted recruits. It’s a fairly
new destination for what has been a
decades-long parade of New Jersey’s
best talent to more prominent pro-
grams around the country.
But Harbaugh isn’t quite done. On
Wednesday, which is National Sign-
ing Day for high-school football play-
ers, Michigan is widely expected to
land the consensus No. 1 player in the
country: defensive lineman Rashan Jim Harbaugh, above, has lured four of New Jersey’s top recruits to Michigan, including Camden’s Brad Hawkins, below left. Below right, Paramus Catholic’s Rashan Gary.
Gary, from Paramus Catholic.
Gary, like many top prospects,
could opt to play just about any-
where in the country. In recruiting

(TOP): ZUMAPRESS.COM; (BOTTOM L) :APRIL SAUL FOR THE WALL STREET JOURNAL; (BOTTOM RIGHT): ASSOCIATED PRESS
hotbeds—such as California, Florida,
Georgia and Texas—in-state power-
houses have a natural advantage in
keeping their stars at home. But
when it comes to New Jersey, where
Rutgers has struggled to establish a
national reputation, it’s always open
season.

’Every school tries to

find some of those areas
that they can call home
outside of home.’

“Every school tries to find some of

those areas that they can call home
outside of home,” said Barton Sim-
mons, director of scouting for the re-
cruiting website 247sports.com.
“Michigan in particular wants to have
a strong national brand. New Jersey
is where they’ve planted their flag
most successfully out of all.”
That’s no accident. New Jersey
consistently produces high-level tal-
ent, making it a must-stop for any
big-time coach. “New Jersey is abso-
lutely one of those second-tier states
that needs to be a priority if you’re a
school with the ability to have that
kind of recruiting footprint,” Sim-
mons said.
In all, four of the state’s top eight
recruits this year are committed to
Michigan. Gary, a 6-foot-5, 290-pound
defensive anchor, would make that
five and cap what may be the best re-
cruiting class in America. Michigan
will officially reveal its class during a
high-profile event on Wednesday that
will reportedly feature Derek Jeter
and Tom Brady, who played quarter-
back for the Wolverines.
Gary’s interest in Michigan is no
accident. When Harbaugh became the
Wolverines’ head coach last year, he
hired Chris Partridge, Gary’s coach at
Paramus Catholic, to become Michi-
gan’s director of player personnel in
recruiting. (Last month, Partridge
was promoted to linebackers and
special-teams coach.) It’s easy to con-
nect Partridge’s post and Michigan’s
sudden dominance of the New Jersey
recruiting game. “He let Michigan
know that we got athletes,” said
Dwayne Savage, who coaches Cam-
den High School.
Simmons says Partridge deserves
credit, because lots of schools try to
hire staffers with connections to top
high-school players or areas, but few
have been able to follow through as
successfully as Partridge. Two years
ago, Rutgers hired E.J. Barthel, an
independent strength and condition-
ing coach in New Jersey who had
ties to top players such as Gary, as a
key recruiter. But Rutgers hasn’t
made much progress in keeping tal-
ent at home.
Savage coaches two of the highly
regarded Wolverine commits: wide
receiver Brad Hawkins and defensive
end Ron Johnson. Both chose Michi-
gan before their senior years even
began, and Savage says they quickly
went to work getting other New Jer-
sey players to join them.
The last time New Jersey pro-
duced a recruit as highly regarded as
Gary was 2014, when Jabrill Peppers,
also from Paramus Catholic, chose
Michigan. At the time, Partridge, still
Paramus’s coach, told The Wall Street
Journal that his players had gone to
schools in 10 different states in re-
cent years, but “not one in New Jer-
sey, which is fascinating.”
Historically, many of the best col-
lege football players from New Jersey
have shunned Rutgers for schools
that are currently in the Big Ten—
which makes sense, given the
schools’ relative proximity and their
high-level football. Ron Dayne, a Ber-
lin, N.J., set the NCAA rushing record
at Wisconsin. Franco Harris went
from Fort Dix, N.J., to Penn State
(which was independent at the time)
to the Pittsburgh Steelers to the NFL
Hall of Fame. The list goes on.
Rutgers’s leap to the Big Ten in
2014 was meant to boost its profile,
putting the Scarlet Knights in one of
college football’s premier confer-
ences. Top recruits, especially home-
grown, should want to play there.
But for several reasons, that hasn’t
worked out as planned.
The stiffer competition has been
difficult for Rutgers, which has gone
4-12 in two seasons of conference
play. There’s also the lingering spec-
ter of potential NCAA violations, af-
ter coach Kyle Flood was suspended
this season for pressuring a profes-
sor to change a player’s grade. Flood
was later fired.
Meanwhile, the Big Ten has re-
cently welcomed some of the best re-
cruiting coaches in college football—
namely Harbaugh, Ohio State’s Urban
Meyer and Penn State’s James Frank-
lin—and they in turn have invaded
New Jersey. These three schools have
combined to lure 14 New Jersey re-
cruits in the past two years alone.
Now Rutgers—the only major-con-
ference program within 150 miles of
central Jersey—is, once again, hoping
to change all that. In December, the
school hired Ohio State defensive co-
ordinator Chris Ash as its head
coach, though the hiring likely came
too late in the recruiting cycle to se-
cure any big-time commitments this
year. If Ash wants to turn the tide
and reclaim new Jersey from schools
like Michigan, it will take at least two
things: winning more games, and
landing the big-time recruit that al-
ways seems to slip away.
“Rutgers just needs to find some
stability,” Simmons said. “They ha-
ven’t been able to have the kind suc-
cess on the field to be able to com-
pete with an Urban Meyer or James
Franklin or Jim Harbaugh.”

What Can the Yankees Expect From Their Aged Stars in 2016?
With 23-year-old slugger Greg Bird tems—Bill James, Baseball-Reference,
set to miss the entire 2016 season Fangraphs/Steamer, Rotowire and
with a shoulder injury, the Yankees
Look Into the Crystal Baseball Baseball Prospectus—puts Teixeira
are suddenly more reliant on a couple Here’s how five of the leading baseball projection systems rate both (.794 aggregate on-base plus slugging
of older stars—after an off-season Alex Rodriguez and Mark Teixeira in 2016. percentage) above the league-average
during which the team made an ef- HITTER PROJECTION AB HR OPS first baseman last season (.773), and
fort to get younger. As the Journal’s Alex Rodriguez Bill James Handbook 503 24 .768 Rodriguez (.762) very close to the
Jared Diamond reported Tuesday, Bird Baseball-Reference 438 23 .783 designated-hitter average (.770). But
served as a valuable insurance policy Fangraphs/Steamer 483 19 .743 their 47 projected homers is 17 fewer
that the Yankees almost certainly Rotowire 506 21 .767
than in 2015, when Teixeira hit 31 and
would have utilized at some point Rodriguez 33.
Baseball Prospectus 502 22 .749
Rodriguez is projected for 486 at-
Take a Number Mark Teixeira 
AVERAGE
Bill James Handbook
486
431
22
26
.762
.811
bats, and Teixeira just 431. That
means someone else will have to fill
Baseball-Reference 417 24 .778 in at both first base and DH fairly of-
this season, since incumbent first Fangraphs/Steamer 420 24 .779 ten. Now that player won’t be Bird,
baseman Mark Teixeira and desig- Rotowire 418 27 .823 who posted a sterling OPS of .871
nated hitter Alex Rodriguez sport a last year in 157 at-bats, trailing only
Baseball Prospectus 470 26 .780
combined age of 75. Teixeira (.906) among Yankees with
Now Teixeira and Rodriguez must AVERAGE 431 25 .794 significant playing time. General man-
stay healthy and maintain the unex- Source: WSJ ager Brian Cashman said he’s content
pected offensive gains they posted with Dustin Ackley in that role. While
in 2015. Both have undeniably en- Ackley was outstanding for the Yan-
joyed great careers—with Rodriguez’s The Wall Street Journal sampled of the campaign season, we aggre- Teixeira will be less effective than kees in limited 2015 action (.987 OPS
ranking as one of the most produc- five of the leading baseball projection gated them like polls to better predict they were in their resurgent 2015 sea- in 52 at-bats), his career OPS in
tive in baseball history—but what ex- systems that account for age, overall 2016 results. sons, during which each slugged more 2,064 at-bats is a subpar .680, with
actly can fans expect from the duo career success and recent perfor- The consensus, perhaps not sur- than 30 home runs. But the good only 46 homers.
in 2016? mance, and injury history. In the spirit prisingly, is that both Rodriguez and news is that combining the five sys- —Michael Salfino

ASSOCIATED PRESS
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

CAREERS B5 | CROSSWORD B6

BUSINESS & TECH.

Boeing Is on Course Drugmakers Join Race
To Deliver a Jet Early To Create Zika Vaccine
AVIATION | B6 HEALTH | B3
© 2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | B1

Crude Slump Pressures Exxon, BP

BY SARAH KENT Exxon’s annual earnings were have been smacked by oil 50% in 2015. PLC is completed. The ratings
AND BRADLEY OLSON cut in half to $16.2 billion, prices that fell below $30 a Those four oil giants are on agency also placed Exxon and
forcing the Irving, Texas, com- barrel on Tuesday. Chevron track to report their lowest an- others on credit watch. Exxon
Exxon Mobil Corp. posted pany to put its share buyback Corp. said it would cut spend- nual profits since 1998, accord- is one of only a handful of cor-

DAVID RYDER/BLOOMBERG NEWS

its weakest annual results in plan on hold to preserve cash. ing by $9 billion and lay off ing to S&P Capital IQ, when porations in the world that
more than a decade and BP As oil prices have fallen 70% there was a similar oil-price holds a triple-A rating.

1998
PLC suffered a loss as big as since June 2014, the effect on downturn. It was a year or two A downgrade is unlikely to
that booked in the aftermath the most resilient energy firms before many of the firms affect the companies’ ability to
of the worst offshore oil spill has touched a nerve with in- nearly doubled in size through operate, but it does shine a
in its history, showing the ex- vestors, contributing to anxi- Last time oil-industry big four’s acquisitions of rivals, including spotlight on their spending.
tent of the damage that the ety over the ties between the combined results were weaker, the tie ups of Exxon and Mobil Exxon Chief Executive Rex
20-month crude-price slump global economy and the oil estimates S&P Capital IQ and BP and Amoco. Tillerson said in a news re-
can inflict on even the big- market. The Dow Jones Indus- The oil slump has brought lease that the company would Amazon’s bookstore in Seattle.
gest and most secure oil trial Average fell 1.8% Tuesday, pressure to bear on oil compa- slash spending by 25% this
companies.
BP posted a loss of $5.2 bil-
lion for 2015—on par with
dragged down by energy firms
like Exxon.
“2016 is going to be tough,”
4,000 workers this year after
reporting a surprise fourth-
quarter loss of more than half
nies’ relatively high credit rat-
ings. Standard & Poor’s down-
graded Chevron and Shell and
year. That is more than some
analysts expected, said Guy
Baber, an analyst at Simmons
Amazon
2010, when one of its Gulf of
Mexico oil rigs exploded, kill-
ing 11 workers and spilling 3.2
said BP Chief Executive Bob
Dudley at a news conference in
London.
a billion dollars. Anglo-Dutch
energy giant Royal Dutch
Shell PLC indicated last month
said it would review the latter
company’s status again once
its roughly $50 billion acquisi-
& Company International.
Exxon’s decision to pause
its buyback program is a major
Said to Plan
million barrels of oil. And BP, Exxon and their rivals that its adjusted earnings fell tion of smaller rival BG Group Please see OIL page B4
Bookstore
Fresh Ingredients Came Back to Haunt Chipotle Openings
BY GREG BENSINGER
Inside the probe and
After dipping its toes into
the chain’s safety brick-and-mortar retailing last
overhaul; source of year with its first physical
bookstore, online giant Ama-
outbreak is a mystery zon.com Inc. is poised to dive
into the deep end.
BY JULIE JARGON The Seattle company plans
AND JESSE NEWMAN to open as many as 400 book-
stores, Sandeep Mathrani,
Steve Ells built Chipotle chief executive of mall opera-
Mexican Grill Inc. into a res- tor General Growth Proper-
taurant-industry leader by ties Inc., said on an earnings
playing offense, brashly tout- call on Tuesday.
ing fresher and more virtuous “You’ve got Amazon open-
food than competitors. His ing brick-and-mortar book-
company boasted of “food with stores and their goal is to
integrity” and ridiculed rivals open, as I understand, 300 to
for using artificial ingredients. 400,” said Mr. Mathrani in re-
For much of the past few sponse to a question about
months, though, he has been mall traffic.
playing defense after E. coli That plan compares to the
outbreaks sickened dozens, set 640 stores Barnes & Noble
regulators on the elusive trail Inc. operates and the 255 loca-
STEPHEN BRASHEAR/ASSOCIATED PRESS

of the cause and sent investors tions Books-A-Million Inc.

fleeing from the once-hot said it had as of last summer.
leader in healthy fast food. Both companies spent years
Mr. Ells, Chipotle’s co-chief building their retail presence.
executive, must show he can In addition to its one book-
revamp its kitchens to avoid a store, Amazon also has a
repeat and revive its fortunes. presence in Westfield Corp.
Chipotle on Tuesday reported malls, where it has set up per-
fourth-quarter net income of manent kiosks selling devices,
$67.9 million, or $2.17 a share, cases and branded apparel.
down 44% from a year earlier, ‘The events of the last few months have shown us we need to do better,’ Chipotle founder and co-CEO Steve Ells told investors Tuesday. It wasn’t clear where Mr.
on a 6.8% drop in sales to Mathrani got Amazon’s store
$997.5 million. It was the first told employees during the cri- across America, as well as a handling, said people familiar The crisis has been deeply figure, but he could have spo-
decline in quarterly revenue sis, said a person familiar with smaller E. coli outbreak that with Chipotle. personal for 50-year-old Mr. ken with Amazon’s real-estate
since Chipotle went public in his pronouncements. Mr. Ells sickened five more. Chipotle Matthew Wise, who heads Ells, a trained chef who bor- executives about their plans.
2006. declined interview requests. executives publicly complained the CDC’s outbreak-response rowed from his father to start Spokesmen for Amazon and
Mr. Ells told investors Tues- What caused the E. coli may the CDC was issuing too many team, on Monday said it isn’t the first Chipotle in 1993. He GGP declined to comment.
day that Chipotle has prided remain a mystery after the updates. The CDC, in turn, bris- uncommon for an outbreak in- expanded the chain to more If Amazon were to open
itself on being a safe place to Centers for Disease Control tled at Chipotle’s going public vestigation to be inconclusive. than 2,000 restaurants, with hundreds of stores, it would
eat but that “the events of the and Prevention said Monday with statements. “Because many dishes have the $4.5 billion in 2015 revenue, take years to pick locations,
last few months have shown us the outbreaks appeared to be Behind the scenes, Chi- same ingredients and everyone making it a forerunner in in- reach leasing deals, and hire
we need to do better.” over and it had closed its in- potle also disagreed with health ate multiple ingredients in gredients like free-range meat. staff. Physical stores would
People who know Mr. vestigation without pinpoint- officials about the E. coli’s likely their meals” in the Chipotle But after years of rapid give Amazon customers a
Ells said he has thrown himself ing an ingredient source. source, said people familiar case, he said, “it was hard to store growth, and double-digit place to leaf through books
into overhauling Chipotle’s “Because we will probably with the discussions. Govern- pull out a common ingredient.” sales increases at existing res- before buying them.
food-safety practices. Some of never know for sure what ment officials leaned toward “It’s largely been a collabor- taurants in 2014, Chipotle’s Barnes & Noble shares slid
those efforts involve undo- caused this,” Chipotle spokes- produce. Chipotle concluded the ative relationship” with Chi- growth began to slow. It faced 2.4% to $7.90 and Amazon fell
ing practices he had trumpeted man Chris Arnold said Monday, E. coli was most likely from potle, Mr. Wise said last new competitors emulating its a fraction to $551.57 in after-
as contributing to the fresh- “we have taken significant contaminated Australian beef. month, “but these can be model of serving fresh fare hours trading.
ness or quality of ingredients, measures to improve safety.” Chipotle in 2014 began im- highly emotional situations.” fast, while traditional chains Amazon opened a physical
such as a move last year to Mr. Ells’s team sometimes porting grass-fed beef to meet Mr. Arnold said last month: like McDonald’s Corp. and Yum bookstore in Seattle in Novem-
start cutting produce in res- was at odds with the CDC, its demand for “responsibly “We have been diligent in our Brands Inc.’s Taco Bell invaded ber, its first foray into brick-
taurant kitchens. which helped investigate the raised” meat. It believed the E. efforts to provide CDC with its turf with moves to elimi- and-mortar retail. The store,
“Food safety is the most im- outbreak of E. coli tied to Chi- coli spread to other ingredi- the information it needs to nate artificial ingredients and in an outdoor mall, sells books
portant thing,” Mr. Ells has potle that sickened 55 people ents through improper food conduct its investigation.” Please see ELLS page B2 Please see AMAZON page B5

U.S., Europe Reach Noncompete Pacts Hobble Rookies

Deal on Data Transfer BY ARUNA VISWANATHA the practice to see if it vio-
lates New York labor laws, ac-
The U.S. and European promise by Secretary of State Stephanie Russell-Kraft cording to people familiar
Union reached broad agree- John Kerry to establish a gov- started work in September as with the matter. One of the
ment Tuesday on a new ar- ernment ombudsman to follow a reporter covering the busi- people said the office’s labor
rangement for protecting data up on any complaints from Eu- ness of law for New York- bureau in December sent a
privacy, providing breathing ropean citizens about poten- based Thomson Reuters subpoena to Law360, a LexisN-
room to thousands of compa- tial privacy breaches, the EU Corp., a job she says she con- exis Group unit that publishes
KHOLOOD EID FOR THE WALL STREET JOURNAL

said. sidered a step up after spend- online newsletters covering

By Natalia Drozdiak, Businesses will be subject
Sam Schechner to multiple new requirements,
in Brussels including binding arbitration
and John D. McKinnon in some circumstances, ac-
in Washington, D.C. cording to U.S. officials. And
companies will have to pro-
nies that move personal infor- vide additional information to
mation from Europe to the European consumers to inform
U.S. them more fully about their
Under the last-minute deal, rights, a senior Commerce De-
reached one day after the offi- partment official said.
cial deadline expired, the EU Negotiators from the EU
said the U.S. had agreed to and the U.S. had been scram-
provide binding written assur- bling to pull together a new
ances that personal informa- data-privacy agreement since
tion about Europeans wouldn't the EU’s highest court last fall
be subject to bulk surveillance invalidated an earlier arrange-
when it is copied on to U.S. ment that had been in effect
servers. for 15 years, saying it provided
Tuesday’s deal, called the insufficient privacy guaran-
Privacy Shield, also includes a Please see DATA page B2
ing two years at legal news-
wire Law360.
Within weeks, however,
Thomson Reuters asked Ms.
Russell-Kraft to leave. Her pre-
vious employer, Law360, also
in New York, had sent a letter
to the company citing a non-
compete agreement she signed
when she started at the news-
wire as a 25-year-old, her first
full-time job in journalism.
The letter, a copy of which
was reviewed by The Wall
Street Journal, laid out her
obligations under the agree-
ment, though it didn’t call for
her dismissal.
Noncompete agreements—
common in computing and en-
gineering jobs, where proprie-
Reporter Stephanie Russell-Kraft has struggled to find a new job.
tary technology can be at
stake—are spreading to other
industries and stretching fur-
ther down the corporate lad-
der. Labor-law experts say
some employers appear to
be using them to prevent turn-
over among rookie employees
court cases and other legal
news.
Law360 said in a statement
that the newswire “is aware of
an investigation into certain
media-company employment
practices and has received in-
quiries in connection with that
investigation. As is our stan-
dard practice, we do not com-
ment on ongoing investiga-
tions and intend to give our
full cooperation to investiga-
they have spent time and tors to the greatest extent
money training. Since the possible.”
agreements are private con- Mr. Schneiderman’s office
tracts, they generally are en- also has been investigating the
forced through lawsuits. sandwich chain Jimmy John’s
New York Attorney General use of agreements that bar its
Eric Schneiderman has workers from taking jobs at
launched an investigation into Please see JOBS page B5
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Wednesday, February 3, 2016
INDEX TO BUSINESSES
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
Abrar International
Holding......................C8
Affiliated Managers
Group.........................C2
Alibaba Group Holding
.....................................A1
AllianceBernstein
Holdings....................C2
Ally Financial .............. C2
Amazon.com ............... B1
Amoco ......................... B1
Archer Daniels Midland
.....................................B4
Autodata.....................B3
B Jimmy John's..............B1
Barnes & Noble...........B1
BG Group.....................B1
BlackRock....................C2
Boeing ......................... B6
Books-A-Million..........B1
BP.........................B1,C12
C
CBRE Group.................C6
Chevron................B1,C12
Chipotle Mexican GrillB1
CIT Group .................... C2
Cnooc...........................A8
Credit Suisse Securities
..................................... C4
D Mobil ........................... B1
Dow Chemical........A8,B3
Dropbox ....................... C2
E Nasdaq.........................C2
Editas Medicine .......... C4
DuPont........................A8
Emerson Electric.........B6
Etsy..............................C2
Express Scripts Holding
................................... C12
Exxon Mobil.........B1,C12
F or 49 cents a share, a year
Facebook....................C12
Fiat Chrysler
Automobiles ............. B3
Ford Motor..................B3
INDEX TO PEOPLE
A Gartside, Nick ............. C4
al-Dabbagh, Amr.........C6
Al Maiman, Talal.........C8
Arnault, Bernard.........B4
Avery, Michael L.........C1
B 20%
Bernstone, Rob...........C1
Bezos, Jeff..................B5
bin Talal, Prince al-
Waleed ...................... C8
Butch, Thomas............C2
C K
Codel, Franklin ............ C6
D Kuroda, Haruhiko........C4
Devarajan, Sharad ...... B5
Diamond, Michael.......B3
E Link, Charles...............B3
Ells, Steve...................B1
Ermotti, Sergio...........C2
F V
Fauci, Anthony............B3
Fitterling, James........B3
G Markopolos, Harry......C2
Gardner, Kirt ............... C2
DATA
Continued from the prior page
tees. That set off alarms for
numerous companies—from
retail corporations to technol-
ogy firms—that transfer infor-
mation on users, customers
and employees across the At-
lantic, who feared such trans-
fers could be blocked if a new
deal wasn't reached.
Privacy is often a more sen-
sitive issue in Europe than the
U.S., and Tuesday’s agreement
still must be approved by the
privacy regulators of the EU’s
28 member states, who were
meeting Tuesday and Wednes-
day. Beyond that, numerous
details of the framework must
be filled in, and the agreement
could face legal challenges
from privacy advocates.
“Whatever agreement is
eventually reached, it’s going
to be challenged,” said Ed-
uardo Ustaran, a privacy law-
yer at Hogan Lovells who
works with U.S. technology
firms. “Companies face some
difficult decisions.”
But officials on both sides
said the accord represented a
major step forward. “We have
agreed with our U.S. partners
a new framework that will en-
sure the right checks and bal-
ances for our citizens,” said
Andrus Ansip, the EU’s vice
president who oversees digital
affairs.
U.S. officials were similarly
upbeat. “It’s been a long road,
but we’ve turned the corner,”
Commerce Secretary Penny
Pritzker said of the negotia-
tions, which she conceded had
been “difficult.” She called the
deal “essential to trans-Atlan-
tic commerce.”
The previous agreement,
called Safe Harbor, allowed
companies to transfer infor-
mation about Europeans to the
U.S. if they promised to apply
a series of EU-style privacy
rules.
The European Court of Jus-
tice ruled that Safe Harbor
didn’t sufficiently protect Eu-
ropeans’ privacy, citing con-
cerns that U.S. intelligence
services could access the in-
formation. European privacy
advocates also have worried
about how U.S. technology
firms handle personal data.
Technology trade groups
cheered Tuesday’s deal and
* **** THE WALL STREET JOURNAL.
BUSINESS NEWS
G
GeneOneLifeScience...B3
General Growth
Properties.................B1
Qila'a Jeddah for Real
Estate Investment ... C8
R
Royal Dutch ShellB1,C12
Holiday Online Sales Boost UPS
General Motors...........B3 BY LAURA STEVENS to enable us to handle bigger
GlaxoSmithKline..A12,B3
S and bigger peaks,” he added.
Goldman Sachs Group C3 Saudi Binladin Group..C8 United Parcel Service Inc. UPS said it hired between
GoPro...........................C1 Snapchat......................C2
Southwest Airlines .... B6 reported profit nearly tripled 90,000 and 95,000 seasonal
H-I
S&P 500.......................C4 in the fourth quarter, exceed- workers, as expected, but
Honda Motor...............B3 SpringOwl Asset ing Wall Street expectations, brought them on later, reduc-
Inovio Pharmaceuticals Management ............ A8
.....................................B3 as more customers shipped via ing hours by 8%. Its summer
Square ......................... C2
J Starboard Value....A8,B3 air and higher prices and cost- acquisition of Coyote Logistics
Jeddah Economic ........ C1 Syngenta.....................A1 saving efforts paid off during also lowered outside transpor-
T its all-important holiday sea- tation costs.
JLL ............................... C6 Takata..........................B3 son. Holiday volume came in
K Target..........................B5 The delivery giant also gave lower than UPS expected, as it
Kingdom Holding ........ C8 Third Avenue an upbeat earnings forecast delivered 612 million packages
KraussMaffei Group...A8 Management.............C2
Third Point..................B3 for 2016 on strong e-com- between Black Friday and New
L Thomson Reuters.......B1 merce demand even as indus- Year’s Eve, down from the ex-
JOHN SOMMERS II/REUTERS
Legg Mason.................C2 Toyota Motor..............B3 trial production falls in key pected 630 million. Chief Fi-
LVMH Moet Hennessy T. Rowe Price.........C2,C4
countries amid a weaker nancial Officer Richard Peretz
Louis Vuitton............B4 TrueCar........................B3
global economic outlook. in an interview attributed
M Turing Pharmaceuticals
.....................................B4 UPS set out this past holi- that, in part, to more holiday
Marathon
Pharmaceuticals ..... C12 Twitter....................C2,C4 day to prove to investors it returns being shipped later
Marvell Technology U can balance costs with late- than expected, in January.
Group.........................B3 UBS..............................C2 year surges in e-commerce Ground package volume
United Parcel Service.B2 volume—deliveries to consum- UPS said more customers shipped by air during the holidays. also grew below expectations,
Monsanto....................A1 V
ers accounted for about 60% due partly to slowing indus-
N Valeant Pharmaceuticals of all U.S. deliveries in Decem- because it over prepared for off, including driver-routing trial production, as well as
International......B4,C12
NewLink Genetics.......B3 Verizon Communications ber, up from about 45% in the volume that came in unevenly. software Orion, now 70% in- UPS’s decision to drop some
News Corp...................A1 ............................. A1,C12 third quarter. Both those years it overspent stalled, and the introduction low-yield customers.
Nintendo .............. B4,C12 Volkswagen.................B3 Despite peak holiday vol- by $200 million. of Access Point locations An increase in air volumes
Nissan Motor..............B3 W umes coming in slightly under The company said it low- where customers can pick up helped make up for that, as its
Nomura Securities......C4
Waddell & Reed forecast, UPS posted earnings ered costs by shifting more their packages. Just a 10% in- U.S. deferred air product grew
O Financial....................C1 of $1.33 billion, or $1.48 a than 35% of its SurePost pack- crease in packages per stop nearly 15%, while next-day
Oversea-Chinese Wal-Mart Stores.........B5
Banking ..................... C3 Westfield.....................B1
share, up from $453 million, age deliveries—typically deliv- creates about $200 million in overnight products were up
ered to the door by the U.S. operating profit improvement, 10%. Retailers were using air
P-Q Y
Palantir Technologies.C2 Yahoo ................... A1,C12
earlier. UPS missed earnings Postal Service—back into its Chief Commercial Officer Alan to ship packages farther and
Pinterest......................C2 Yahoo Japan..............C12 expectations the previous two own network to increase the Gershenhorn told analysts faster, Mr. Peretz said, as they
Pirelli...........................A8 Yirendai ....................... C4 holidays, first because it number of packages a driver Tuesday on an earnings call. aim for two-day delivery.
wasn’t able to deliver all its delivers at each stop. Other “The things that we’re doing —Anne Steele
packages on time, and then initiatives also started to pay to our network now are going contributed to this article.
ELLS
Mayer, Marissa....A1,C12 Water Resources said: “Austra- similar scanners to better
Goldman, Ken ............. A8 P Heading South lia has a long history of safe track incoming items.
Gulley, Mark ............... A8 and successful beef exports As the investigation contin-
Pearson, Michael ...... C12 Chipotle quarterly same-store
H Petrus, Jim ................. D2 sales, change from a year earlier over many years and is very ued, the CDC issued public up-
Hammoud, Mounib ..... C8 Plumb, Craig................C8 Continued from the prior page proud of its food safety re- dates about illnesses that oc-
Herrmann, Hank..........C2 R switch to antibiotic-free meat. cord.” He said the problems in curred in October and
Humphrey, Peter ...... A12 Ramsay, John ............. A8 The illnesses sidetracked the 2014 report have been rec- November but had taken a
J Russell-Kraft, Stephanie growth further. In addition to tified and cited a yet-unpub- while to get through the pub-
Jackson, Nicholas.......B3 .....................................B1 the E. coli cases that started sur- 10 lished 2015 USDA audit report lic-health reporting system.
Jones, Paul Tudor.......B5 S facing in the Pacific Northwest that found no port-of-entry de- Chipotle executives felt that
Jourova, Vera..............B2 in late October, they include Au- tections of E. coli contamina- gave the mistaken impression
Salman, King...............C7
Schiller, Howard........C12 gust salmonella cases in Minne- tion in 2014 and 2015. Beef-in- people were still getting sick. On
0
Kotok, David................C4 Schneiderman, Eric.....B1 sota that sickened 64 and out- dustry experts said Australian Dec. 8, Chipotle co-CEO Monty
Schwab, Charles.........A8 breaks of norovirus traced to beef is as safe as U.S. beef. Moran told investors that news
Shiono, Takashi...........C4 Chipotles in California in August The contamination risk of the outbreak was “fueled by
L
Siegel, Bill...................C2 and Boston in December that to- –10 from meat may have been
LaNeve, Mark..............B3 the sort of unusual and even un-
Starr, Evan..................B5
gether sickened hundreds. higher for Chipotle than other orthodox way the CDC has cho-
T In December, Chipotle was chains, food-safety experts sen to announce cases.”
Liveris, Andrew...........B3
Takada, Shigehisa.......B3 4Q 2015: –14.6%*
Luciano, Juan..............B4 served with a grand-jury sub- –20 said, because it brings fresh Mr. Wise said “the only thing
Thain, John..................C2
M poena as part of a federal crim- meat into its kitchens, unlike that’s different in this outbreak
inal probe seeking information 2013 ’14 ’15 many big chains. than others” is that the CDC did
Maatman, Gerald........B5
Venditti, Andreas........C2 on the California norovirus *Estimate Source: the company Chipotle continues to use the daily updates in the early days
Malone, Michael.........B5
Y outbreak. On Tuesday, Chipotle THE WALL STREET JOURNAL. Australian beef supplier but is because it wanted consumers to
Marchionne, Sergio .... B4
Yamamoto, Yuhki........C4 said it was served on Jan. 28 now testing meat for pathogens be informed.
Mathrani, Sandeep.....B1 Yellen, Janet ............... C4 with a subpoena broadening Lindquist. Chipotle examined before it arrives at restau-
the investigation’s scope, re- all 64 ingredients it serves, rants, among other changes, said Outbreak is over
quiring Chipotle to produce ruling out many. people familiar with Chipotle’s On Jan. 5, Chipotle execu-
urged European privacy regu-
lators to hold off on enforcing
the court ruling until the new
deal comes into force, which
documents related to company-
wide food-safety matters dat-
ing back to Jan. 1, 2013.
When the CDC on Nov.
20 reported the outbreak had
spread to Minnesota, California,
New York and Ohio, Chipotle’s
actions. In the past, restaurants
transferred arriving raw meat to
bowls, and workers hand-rubbed
it with adobo spices before mari-
tives met with the CDC, the
Food and Drug Administration
and the Agriculture Depart-
ment’s Food Safety and Inspec-
could take three months. Slide in sales distribution records convinced nating it in refrigerators tion Service, all involved in the
Republican congressional Sales at existing Chipotles the company the culprit was and cooking it. probe, for the first time in per-
leaders also praised on the fell 14.6% in the fourth quarter, red onions, cilantro or beef, said Now, employees will add son to discuss the outbreak, in-
agreement, reflecting its im- dropping 30% in December, the people familiar with its investi- the rub in sealed bags so they cluding their beef-cross-con-
portance for U.S. technology company said Tuesday. Chi- gation. Onions seemed unlikely don’t directly handle raw tamination hypothesis.
companies. “This agreement is potle’s stock has fallen more to Chipotle, because its supplier meat. Workers now marinate The CDC thought that sce-
a needed victory for job cre- than 25% since Oct. 30. The shipped much of its harvest to meat after restaurants close to nario unlikely, because it
ation efforts in an already tur- shares were down nearly 6% at other restaurants, but no ill- avoid possible contamination would mean similar errors were
bulent global economic situa- $448 in after-hours trading nesses tied to them had been with food prepared during the repeated in all affected states
following its earnings release. reported. day. Each restaurant shift has simultaneously, said Mr.
Associates described Mr. Two weeks later, the CDC designated food-safety lead- Wise. “The consensus is there’s
Ells as a germaphobe and per- reported cases in Illinois, ers to ensure outlets are ad- still more work to be done be-
fectionist who would close res- Maryland and Pennsylvania. hering to protocols. Half of fore we get to an ingredient we
taurants if he noticed they were Chipotle crossed cilantro off restaurant managers’ bonuses feel caused the outbreak,” he
dirty and help clean them. the list, because it used a dif- are now tied to food safety. said after the meeting.
After customers in Seattle ferent cilantro supplier in Illi- As Chipotle and health au- Still, Mr. Ells told investors on
and Portland, Ore., began re- nois. That left beef. As not all thorities sought answers, they Jan. 13 he was hopeful the CDC
porting E. coli illnesses, Chi- sickened customers ate were often out of sync. The would soon declare the out-
potle shut all 43 restaurants in beef, it could have caused the CDC’s Mr. Wise said Chipotle’s break over. Mr. Wise said “that’s
the region, submitted thou- outbreak only if E. coli bacte- distribution records posed a usually a statement I would ex-
sands of ingredient samples to ria passed from the meat to challenge. He declined to offer pect the CDC to make.”
the FDA for testing, and sani- other ingredients through im- specifics but said “having On Monday, investigators
Andrus Ansip, the tized and restocked restaurants proper food handling. traceability from field to said they couldn’t identify any
European Union before reopening them. It hired A 2014 USDA audit report of slaughterhouse to restaurant ingredient as the source for the
food-safety firm IEH Laborato- Australian meat facilities, the can help facilitate traceback. outbreaks.The FSIS said: “Dis-
executive overseeing ries & Consulting Group to help latest available publicly, noted Chipotle has articulated plans tribution data shared by Chi-
its digital project. identify and fix the problems. that port-of-entry records for on their end to make that sys- potle does not establish a link
None of the ingredients the latter part of 2013 and the tem more robust.” between Australian beef, or any
tested positive for E. coli, Chi- first part of 2014 indicated that Mr. Arnold said Chipotle single source of beef, and the
tion,” said Sen. John Thune potle has said publicly, beef products shipped to the has provided investigators de- Chipotle restaurants where case
(R., S.D.), chairman of the Sen- likely because the contaminated U.S. from Australia “continue to tailed records, adding “we are patients reported consuming
ate Commerce Committee. food had been consumed or dis- be in violations of United States not aware of any issues.” It re- steak.”
But some European privacy carded. food safety standards,” citing cently began requiring suppli- “The investigation is over
advocates lashed out at the Local health authorities ini- the presence of feces and diges- ers to label shipments with and was inconclusive in terms
deal, saying it doesn't go far tially suspected locally sourced tive-tract material on meat. item numbers that get scanned of identifying a cause, so that is
enough. “The emperor is try- produce, said Washington A spokesman for Australia’s at distribution centers. Soon, consistent with how things
ing on a new set of clothes,” state epidemiologist Scott Department of Agriculture and he said, restaurants will have ended,” Mr. Arnold said.
said Joe McNamee, executive
director of European Digital
Rights, a Brussels-based advo- Tracing an Outbreak
cacy group. He called the deal Authorities linked a series of foodborne-illness outbreaks last year to Chipotle, roiling its business and its stock.
a “stopgap measure” that is
bound to fail. $800 a share Dec. 9: Health officials confirm presence of norovirus among Boston
Jan Philipp Albrecht, a Ger- College students who ate at a Chipotle over the prior weekend.
man member of European Par- Dec. 21: The CDC reports another Chipotle-linked E. coli
liament representing the outbreak with a different DNA fingerprint involving
Green Party, said privacy regu- people from Kansas, North Dakota and Oklahoma.
700
lators should challenge the
deal, predicting it would end Jan. 6, 2016: Chipotle
up again before the EU’s top discloses that it
court. “This is a sellout of the received a grand-jury
fundamental EU right to data 600 subpoena in
protection,” he said. July 2015: August: Oct. 30: First reports of new E. coli December seeking
European Union Justice Small E. coli Norovirus at a infections among Chipotle customers in information about
Commissioner Vera Jourova, outbreak linked California Washington and Oregon. Chipotle shuts the Simi Valley, Calif.
whose portfolio made her the
500 to Chipotle in Chipotle sickens all 43 restaurants in the two areas. norovirus outbreak.
lead EU negotiator, said she Seattle though 234 people.
would present the new frame- isn't publicized Separately,
work to the national data pro- Nov. 20: The CDC reports E. coli outbreak spread
at the time. Salmonella
tection authorities Wednesday to Minnesota, California, New York and Ohio.
traced to
morning. 400 tomatoes at 22
The regulators are also con- Chipotles in Dec. 4: The CDC reports Chipotle-linked E. coli cases in Feb. 1: CDC says
sidering whether to allow Minnesota Illinois, Maryland and Pennsylvania, bringing total to nine both E. coli outbreaks
companies to continue using sickens 64. states. Company says it expects hit to sales and earnings appear over.
other legal mechanisms to in fourth quarter.
300
transfer information about Eu-
ropeans to the U.S., such as J A S O N D J F
standardized contracts. Sources: WSJ Market Data Group (stock price); news reports; public filings THE WALL STREET JOURNAL.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * * Wednesday, February 3, 2016 | B3

BUSINESS NEWS

Drugmakers Set Sights on Zika Starboard

Acquires
Any vaccine for virus
linked to birth defects
is likely years away
6.7% Stake
from reaching market In Marvell
BY NOEMIE BISSERBE BY DAVID BENOIT
AND BETSY MCKAY
Activist investor Starboard
PARIS—Drug companies are Value LP has taken a 6.7%
beginning early-stage research stake in Marvell Technology
to develop a new vaccine Group Ltd. and is betting
against the rapidly spreading the beleaguered semiconduc-
Zika virus, joining the race to tor company can boost mar-
control an outbreak that the gins among other improve-
World Health Organization ments, according to people
said constitutes a global pub- familiar with the matter.
lic-health emergency. The position, expected to be
It might be years, however, reported Wednesday, adds to
before any vaccine reaches the pressure on Marvell, which is
market, meaning the new facing investigations into its
wave of research is unlikely to accounting amid a sharp fall in
help curb the current out- its stock.
break. Though Zika generally Shares of the company,
MARIO ARTURO MARTÍNEZ/EUROPEAN PRESSPHOTO AGENCY

makes people only mildly ill which is incorporated in Ber-

for a few days, it has been muda but run from Santa
linked to a serious birth defect Clara, Calif., are down 44%
in which babies are born with over the past 12 months, with
undersized skulls and brains. most of the decline following
Zika’s explosive spread the September announcement
could give pharmaceutical of an internal review into its
companies a new opportunity accounting that was coupled
in an increasingly important with weaker-than-expected re-
category of drugs, but the im- sults. In December, the com-
pact of a vaccine would de- pany said it had received inqui-
pend on the prevalence of the ries from U.S. officials relating
virus when it hits the market to its accounting and disclosed
and the ability and willingness worsening results. The com-
of governments to launch mas- pany said it was cooperating
sive vaccination campaigns. A health worker fumigates a house in Oaxaca, Mexico, to fight the rapid spread of the Zika virus, which is carried by mosquitoes. with the investigations.
To attack Zika, French A Marvell spokesperson
drugmaker Sanofi SA said it give it a head start in develop- improve research and develop- tial to develop a Zika vaccine. this year and probably not wasn’t immediately available
would take advantage of the ing a Zika vaccine. U.S. biotech ment for epidemic diseases, in The U.S. National Institutes even in the next few years.” to comment late Tuesday.
research it did for its newly company NewLink Genetics the wake of the Ebola crisis in of Health also is accelerating The virus has become a ma- The company is run by hus-
approved vaccine for dengue Corp. said it too was working West Africa and as new epi- research into rapid diagnostic jor concern, mainly because of band-and-wife co-founders Se-
fever—the world’s first against on developing treatment op- demics such as Zika emerge. tests, vaccines, and drugs for its possible links to micro- hat Sutardja, who is chairman
the mosquito-borne illness. tions for the disease. “This is Last month, GeneOne Life Zika, said Anthony Fauci, di- cephaly in babies and Guillain- and chief executive, and Weili
The Zika and dengue viruses going to take some time and Science Inc., a South Korean rector of the National Institute Barré, a rare disorder in which Dai, who is president. Its chips
are in the same family. “Theo- effort,” said Charles Link, the company, said it had launched of Allergy and Infectious Dis- the body’s immune system at- are used primarily in storage
retically, there could be some company’s chief executive. a joint research program with eases, an arm of the NIH. tacks nerve cells. Health au- devices and for networking.
cross immunity,” said Nicholas Epidemic diseases typically U.S. biotech firm Inovio Phar- The institute is pursuing thorities in Brazil, where up to Starboard sees opportunity
Jackson, global head of re- draw little investment from maceuticals to develop a two different pathways to a 1.5 million people may be in- for Marvell to boost its mar-
search at Sanofi Pasteur vac- drug companies because de- DNA-based vaccine to prevent Zika vaccine, and may get one fected with the Zika, have con- gins by slashing costs, for in-
cines unit. Michael Diamond, mand for those products is and treat Zika virus infection. into an early Phase I clinical firmed 404 microcephaly stance by exiting the mobile-
an infectious-disease specialist sporadic and unpredictable. U.K. drugmaker Glaxo- trial this year, he said. cases since October. device business that has failed
at Washington University in The WHO, the U.S. govern- SmithKline also said last week But, he cautioned: “We will —Peter Loftus to live up to expectations, the
St. Louis, said Sanofi’s exper- ment, the drug industry and that it was assessing its re- not have a widely available and Denise Roland people said.
tise on dengue would likely others are working on ways to search platform for the poten- safe and effective Zika vaccine contributed to this article. Marvell already said in Sep-
tember that it would scale
back that business and cut 17%

Takata U.S. Car Sales Ran Flat in January

of its workforce of more than
7,000.
The company has a market

Controls BY CHRISTINA ROGERS

AND ANNE STEELE Mixed Results
value of about $4.5 billion and
about $2.3 billion in cash,
which activists often say

Lacking, U.S. auto sales were mixed

in January as fewer selling
U.S. light vehicle sales in January should be handed to investors.
Starboard has a history of
investing in semiconductor

Panel Says days than a year earlier and a

blizzard along the East Coast
kept shoppers away from
BY MIKE SPECTOR dealer showrooms.
Sales discounts and nation-
Takata Corp., the company wide average gasoline prices
that supplied defective air below $2 a gallon spurred buy-
bags used in millions of vehi- ing despite the bad weather,
cles world-wide, lacks clear helping several auto makers
processes for tackling poten- post gains, while others re-
tial safety defects and needs ported modest sales declines.
to improve its manufacturing, Low interest rates and em-
said an outside panel the com- ployment gains also are pad-
pany commissioned. ding consumers’ pockets and
Takata employees responsi- steering them toward pricey
ble for raising safety concerns trucks and sport-utility vehi-
don’t have well-defined roles, cles. Average transaction
and rely on auto makers’ re- prices in January rose 2% to
ports of quality problems, in- $34,112 in what is typically a
stead of ferreting out prob- sluggish month for car sales,
lems themselves, according to said automotive data provider
the report from the panel led Kelley Blue Book.
by Samuel Skinner, a former Overall, auto sales were flat
U.S. transportation secretary. for the month, declining less
The report found Takata than 1% to 1.15 million vehi-
lacked its own program for cles, according to researcher
spotting defects in air bags Autodata Corp. January’s sell-
once they were installed in ve- ing pace was an annualized
hicles, which typically stay on 17.58 million compared with
U.S. roads for more than a de- 17.34 million in December.
cade. In addition, Takata often Fiat Chrysler Automobiles
has employees load air-bag-in- NV, General Motors Co. and
flater propellants by hand, and Nissan Motor Co. posted sin-
lacks enough automated man- gle-digit percentage gains over
ufacturing processes that can a year earlier, while Ford Mo-
better ensure consistent prod-
ucts, the report found.
203,745 172,478
CHANGE FROM A YEAR EARLIER
0.5% 2.8%
Source: the companies
tor Co., Toyota Motor Corp.,
and Honda Motor Co. re-
ported sales fell in the month.
There were red flags for car
makers in the results after re-
cord industry sales in 2015. In-
centive spending jumped 13%
last month to $2,932 a vehicle,
according to an online car-
shopping firm TrueCar Inc.,
signaling auto makers are
working harder to coax cus-
tomers into dealerships.
Ford and Fiat Chrysler deal-
ers each had more than three
months’ worth of vehicles on
their lots at the current sales
rate, far higher than the 60
days auto makers consider
healthy. Passenger-car sales
are declining at double-digit
percentage rates for some car
companies, with 10 campaigns
in which it had a more than
5% stake requiring disclosure
161,283 155,037 105,734 100,497 20,079 and several smaller ones.
Many of the companies wound
up selling themselves after
Starboard pushed for board
and management changes.
4.7% 6.9% 1.6% 1.7% 14.6% For Marvell, Starboard has
hired as advisers three semi-
conductor executives with
THE WALL STREET JOURNAL. whom it has worked on other
investments, the people said.
makers as consumers flock to four days of sales due to Win- They are Richard S. Hill, chair-
trucks and SUVs. ter Storm Jonas but expects to man at Tessera Technologies
Wall Street analysts and recover them in February. Inc., which previously fought
some dealers caution that U.S. Heavy snow, while denting Starboard in a proxy fight be-
auto sales have peaked. But showroom traffic, encourages fore settling; Oleg Khaykin,
car executives say steady em- consumers to purchase SUVs former CEO of International
ployment gains and housing with all-wheel-drive, Mr. Rectifier Corp.; and Jeffrey S.
market strength suggest gains Sheehy said. “You get stuck a McCreary, most recently of In-
ahead. “We are certainly look- couple of times and watch tegrated Device Technology
ing forward to February and your neighbor drive by in a Inc.
March being strong,” said SUV. That changes your think- Marvell has occasionally
Mark LaNeve, Ford’s U.S. sales ing,” he said. been flagged by analysts as a
chief. John Humphrey, senior vice potential takeover target, es-
Some analysts forecast this president of the global auto- pecially as mergers in the
year’s U.S. light-vehicle sales motive practice at researcher semiconductor sector have
could near 18 million units, J.D. Power & Associates, said boomed in recent years.
beating last year’s record of Winter Storm Jonas dented re- In December, Cowen analyst
17.5 million. tail sales by 30%—or 15,000 Timothy Arcuri said the stock
Vince Sheehy, president of new vehicles—on the East could be worth $17.35 a share
Sheehy Auto Stores, which has Coast. “Despite the storm, if the company were broken
dealerships in Maryland and we’re still seeing a strong up and sold off. It closed at
Virginia, said he lost about month,” he said. $8.67 Tuesday.

Dow Chemical CEO to Exit Following Merger

Takata Chief Executive
Shigehisa Takada said the
company planned to imple-
ment all of the panel’s recom-
mendations. “Takata’s prod- BY ALISON SIDER step down, Dow said Mr. Liv- In Dow’s plastics segment,
ucts play a critical role in AND LISA BEILFUSS eris “does not contemplate its largest, cheap raw materi-
protecting the driving public, serving” as CEO of the new als helped push that business’s
and we understand that the Longtime Dow Chemical material-sciences business that operating profit to a fourth-
quality of our operations Co. Chief Executive Andrew will emerge from the breakup. quarter record of $1.3 billion.
needs to be beyond question,” Liveris said he would leave by Third Point won’t be launch- In that quarter, the company
he said in statement. mid-2017, after the company ing a proxy fight for board separately completed its roughly
Takata appointed Mr. Skin- completes its planned merger changes at Dow this year, which $5 billion divestiture of Dow
ner to the panel in December with rival DuPont Co. Mr. Loeb privately had threat- Chlorine Products.
2014 to scrutinize the com- Midland, Mich.-based Dow, a ened in the past year, said peo- For the quarter, Dow re-
pany’s practices amid air-bag giant in the chemical and agri- ple familiar with the matter. ported a profit of $3.61 billion,
ruptures linked to nearly a culture industries, in December “We thank Mr. Liveris for his or $2.94 a share, up from $819
dozen deaths globally. Car struck a deal to combine with role in effectuating the Dow/ million, or 63 cents, a year ear-
companies are recalling more DuPont into a $120 billion com- DuPont merger and wish him lier. Per-share results reflect the
JONATHAN ERNST/REUTERS

than 24 million vehicles in the pany that would have about success in his next chapter,” Mr. payout of preferred dividends.
U.S. equipped with the air $90 billion in sales. Loeb said in a statement. Excluding a gain of $1.96 a
bags, which can explode and The merged company, if the Dow on Tuesday announced share resulting from the afore-
spray shrapnel. deal is approved, expects to cut the elevation of Vice Chairman mentioned divestiture, among
The panel didn’t examine some $3 billion in costs before and Chief Operating Officer other items, per-share earn-
events leading to the wide- splitting into three separate James Fitterling, who as presi- ings rose to 93 from 85 cents.
spread Takata recalls, instead businesses 18 to 24 months af- dent and operating chief will Revenue fell 20% to $11.46
focusing on the company’s cur- ter the merger closes. Andrew Liveris has been Dow’s CEO for more than a decade. help shepherd the merger and billion. Analysts projected 70
rent processes. U.S. regulators Mr. Liveris, who has served assist with the transition. cents in adjusted earnings per
fined Takata $70 million in No- as Dow’s chief executive for Late last year, Mr. Liveris In response to activist-in- Profit rose in its latest quar- share on $11.2 billion in revenue,
vember for failing to alert the more than a decade, said Tues- hinted that the deal was a cul- vestor Dan Loeb and his hedge ter as a result of a gain stem- according to Thomson Reuters.
government to defective air day he won’t stay on to lead mination of his tenure and that fund Third Point LLC, which ming from the sale of a chunk of —David Benoit
bags in a timely manner. one of the new businesses. he was nearing retirement. had called for Mr. Liveris to its chlorine business, Dow said. contributed to this article.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4 | Wednesday, February 3, 2016
Drug Firms Are Faulted on Price Increases
Valeant and Turing
took steps to meet
profit targets, say
House investigators
BY STEPHANIE ARMOUR
AND JONATHAN D. ROCKOFF
WASHINGTON—Drugmak-
ers Valeant Pharmaceuticals
International Inc. and Turing
Pharmaceuticals AG boosted
the prices of newly acquired
drugs to meet preset profit
targets, congressional investi-
gators wrote in memos that
summarized internal company
documents they obtained.
The price increases by
Valeant and Turing spurred
public outrage and prompted
congressional investigations.
OIL
Continued from page B1
departure from its long-stand-
ing practice given that the
company has long seen reduc-
ing share count as a way to re-
turn cash to shareholders.
Excluding years when
Exxon did major deals such as
for Mobil in 1998 and XTO in
2010, the company has bought
back more than 3 billion
shares in the last 25 years, ac-
cording to data compiled by
S&P Capital IQ.
Exxon said it plans to con-
tinue investing even as prices
fall, and the company has
avoided mass layoffs in favor
of constantly evaluating the
productivity of its workers,
said Jeff Woodbury, Exxon’s
vice president and corporate
secretary, in a call today with
investors.
The long-term damage
lower spending could have on
the big oil companies’ busi-
nesses was evident in BP’s fail-
ure to replace all the oil it
pumped this year with new re-
serves. The company’s reserve
replacement ratio—an impor-
tant measure that illustrates
the extent an oil company is
replenishing the barrels of
crude produces every year—
was just 61%.
Exxon has yet to disclose
any details about its reserve
replacement, typically reserv-
ing that for later in the year.
Chevron, however, was able to
replace the oil and gas it
pumped at a ratio of 107%.
The prolonged downturn
follows a period of frenzied
spending from 2004 to 2014,
when oil prices were gener-
ally on the rise and often
broke over $100 a barrel.
French energy titan Total SA,
for example, has said the oil
price at which the company
broke even was $110 a barrel
in 2014.
CORBIS
Executives from both com-
panies are expected to testify
Thursday at a hearing of the
House Oversight and Govern-
ment Reform Committee.
Democrats on the panel re-
leased the memos Tuesday.
A number of pharmaceuti-
cal companies have raised the
prices of drugs after acquiring
the rights to sell them in the
U.S., a tactic that some Wall
Street analysts say is contrib-
uting to higher spending on
prescription medicines and
has prompted criticism of
price gouging.
From 2014 to 2015, Valeant
raised the price of more than
20 prescription products by
more than 200%, the Demo-
crats’ memos say. The com-
pany increased the prices of
several of these products in
Last month, Brent crude
prices fell to $27 a barrel.
“This is a cyclical industry,
and some of these companies
lost sight of that when they
built multibillion-dollar projects
all over the world,” said Amy
Myers Jaffe, executive director
for energy and sustainability at
the University of California, Da-
vis. “No one was prepared for
how low this trough could be
and how much it would hurt
them if prices went down.”
Energy conglomerates such
as BP and Exxon have long
sold themselves to investors as
a safe haven during price
crashes. They are buffered by
hefty balance sheets and refin-
ing operations that turn oil
into products like gasoline and
see higher demand when
prices fall. But BP’s refining,
chemical and retail arm,
known as downstream, was
significantly weaker in the
fourth quarter.
BP said Tuesday it would
reduce the head count in its
refining and marketing arm by
3,000 by the end of 2017,
bringing the total number of
job reductions announced this
year to 7,000.
BP also is struggling to
emerge from the shadow of
the Gulf of Mexico spill, which
it said Tuesday has cost the
company $55.5 billion before
tax over five years. The com-
pany is finalizing a settlement
with U.S. governments for
$20.8 billion.
The pressure is expected to
remain on the oil sector as the
glut in supply that has caused
the downturn in prices shows
no sign of letting up. Analysts
and banks have cut their price
outlooks for 2016 to an aver-
age of $50 a barrel, down from
$57 a barrel.
BP’s Mr. Dudley, who was
among the most vocal last year
saying oil prices would remain
“lower for longer,” said Tues-
day that prices won’t remain
“lower forever.”
Under Pressure
A 20-month oil-price slump
has dented oil-company
annual earnings
International oil companies’
annual earnings, in billions
$30
20
10
0 promising that its second smart-
–10 2015 –$5.2B of the company’s best-known
2005 ’10
$30 Chevron Super Mario Brothers, The Leg-
20
10
0 its fiscal third quarter fell 36% to
2005 ’10
Exxon Mobil compared with last year under-
$40
30
20
10
0 Looks to Cut Costs
2005 ’10
Source: the companies
THE WALL STREET JOURNAL.
BUSINESS NEWS
some cases by as much as
800%, according to the
memos.
In February 2015, Canada-
based Valeant purchased two
long-standing drugs that treat
heart problems—Isuprel and
Nitropress—from privately
held Marathon Pharmaceuti-
cals LLC. Valeant then raised
their prices by 525% and 212%
respectively overnight. After
the increases, Valeant saw
gross revenues of more than
$547 million and profits of
about $351 million in 2015, ac-
cording to the memos.
Howard Schiller, Valeant’s
former chief financial officer
who is now the company’s in-
terim CEO, wrote in a May
2015 email that 80% of
Valeant’s revenue growth was
from price increases on its
A Modest Outlook Pushes Down Ferrari’s Shares
Ferrari NV on Tuesday re-
ported a steep drop in fourth-
quarter net profit and gave a
muted outlook for 2016, hitting
the company’s shares and un-
derlining the difficult road
ahead for the sports car maker
as it looks to go it alone.
Ferrari, which was spun off
from Fiat Chrysler Automo-
biles NV last month, said it
earned a net profit of €55 mil-
lion ($59.7 million) in the final
three months of 2015, a drop of
about a third compared with the
same period the previous year.
Sales fell 1% to €744 million.
Business
Watch
BP
NINTENDO
Smartphone Game
Stokes Fans’ Hopes
Nintendo Co. on Tuesday
posted a sharp drop in quarterly
profit, but the videogame giant
stoked the hopes of fans by
phone game would feature one
characters.
’15
Nintendo declined to say which
of its franchises—which include
$4.6B
end of Zelda and Donkey Kong—
would star in the coming mobile
offering, but the news gave gam-
ers something to chew on as
they await the release of Nin-
tendo’s first mobile app, Miitomo.
Nintendo said net profit for
¥29.1 billion ($241 million) from
’15
¥45.2 billion a year earlier, as a
lack of blockbuster game titles
cut sales of its hand-held 3DS
$16.2B device. The company said it also
benefited less than last year
from the weakness of the yen.
Revenue at the Kyoto-based
company declined 18% to ¥221.5
billion from ¥271.5 billion.
—Takashi Mochizuki
ARCHER DANIELS MIDLAND
Agricultural Giant
’15 Archer Daniels Midland Co.
is pushing to cut costs and
streamline assets as the strong
drugs in the first quarter.
Excluding the drug rights
obtained through Marathon,
price represented about 60%
of the company’s growth, ac-
cording to Mr. Schiller’s email.
Valeant, Turing
price hikes spurred
public outrage and a
congressional probe.
Valeant said in a statement
Tuesday that outside consul-
tants the company had hired
determined that the prices of
Nitropress and Isuprel didn’t
reflect their true value to hos-
pitals and patients.
“In this case, we’ve heard
from hospitals, as well as
The numbers are slight adjust-
ments to preliminary figures
Ferrari released last week.
The stock fell 12.4% to
$34.98 at 4 p.m. in New York
trading on Tuesday.
With its independence, Fer-
rari is navigating through un-
charted territory as it has been
part of Fiat Chrysler and Fiat
SpA, before that, for 30 years.
Industry watchers have won-
dered whether Ferrari will be
able to generate the funds
needed to roll out new models.
Now, the company’s muted
growth forecasts may lead to
U.S. dollar and a growing glut of
grain supplies erode profits at
the agricultural giant.
Chief Executive Juan Luciano
said Tuesday that ADM is re-
viewing a potential sale and
other options for some U.S. corn
mills that produce ethanol and
animal feed, and may seek part-
ners to share ownership in facili-
ties such as ports to make its
business more efficient.
ADM shares tumbled 8.7% to
$32.36 in 4 p.m. New York Stock
Exchange composite trading af-
ter it said fourth-quarter earn-
ings slid 39% from a year earlier,
excluding gains on asset sales
and other one-time items.
Over all, the company posted
earnings of $718 million, or $1.19
a share, up from $701 million, or
A display of LVMH’s TAG Heuer watches in New York last year.. LVMH’s fourth-quarter revenue rose 12%.
* *** THE WALL STREET JOURNAL.
from Congress, that we set
the price for these two drugs
too high, and we’ve responded
by offering volume-based dis-
counts of up to 30% for each
of them,” according to the
statement.
Going forward, the com-
pany said it expects growth to
be driven more by volume
than by price.
The materials collected by
the 43-member committee
“confirm what Americans
across the country have expe-
rienced firsthand for years—
that many drug companies are
lining their pockets at the ex-
pense of some of the most
vulnerable families in our na-
tion,” said Rep. Elijah Cum-
mings of Maryland, the top
Democrat on the committee,
who released the memo.
questions about the company’s
claim that its cars, which sell
on average for about €250,000,
are so high-end so as to be re-
cession proof.
Brokers attributed the large
drop in the share price to disap-
pointment regarding the mod-
est growth forecasts for this
year that include a 2.9% in-
crease in adjusted gross operat-
ing profit to €770 million com-
pared with an analyst
consensus of about €800 mil-
lion. Revenue is seen rising 1.6%.
Ferrari shares have lost
about a third of their value
$1.08 a share, a year prior. Ex-
cluding gains on sales, losses on
asset impairments and other
special items, per-share earnings
fell to 61 cents a share from $1
a year earlier. Revenue slid 21%
to $16.45 billion.
—Jacob Bunge
LVMH
Luxury Conglomerate
Shows Its Resilience
LVMH Moët Hennessy Louis
Vuitton SE’s fourth-quarter reve-
nue rose 12% as the French lux-
ury conglomerate showed signs
of resilience through weak global
economic growth and the Nov.
13 terrorist attack in Paris that
curbed tourist flows to the
shopping hub.
The firm, which rang in €10.38
Like Valeant, Turing raised
the price of a drug it had ac-
quired. In 2015, the company
purchased Daraprim, which is
used to treat a parasite infec-
tion. Turing increased the
price to $750 for a tablet from
$13.50. Former pharmaceuti-
cal executive Martin Shkreli,
who has been subpoenaed to
testify at the hearing, became
the target of public ire after
the price increase.
In a statement Tuesday, Tu-
ring said revenue from the
Daraprim cost increase funds
research, development, and
patient-access programs. “We
are committed to ensuring
that no patient will ever be
denied access to Daraprim be-
cause of cost, and to investing
net profits in groundbreaking
research,” the statement said.
ANDREW GOMBERT/EUROPEAN PRESSPHOTO AGENCY
since the company’s October
initial share sale price of $52.
Ferrari Chairman Sergio Mar-
chionne had been counting on
strong growth in China to help
fuel growth, though he dialed
back such expectations, saying
that North America and Europe
will be the growth engines go-
ing forward.
Mr. Marchionne once again
quashed any speculation that
Ferrari might someday sell a
sport-utility vehicle or cross-
over, saying “you’d have to
shoot me first.”
—Eric Sylvers
billion ($11.3 billion) in sales dur-
ing the last three months of
2015, was also optimistic that it
would continue to grow despite
the unsteady economic outlook
and a major downturn in global
stock markets. The company’s
overall organic revenue growth,
which strips out the effects of
currency, grew 5% in the fourth
quarter. Chief Executive Bernard
Arnault said fears of a slowdown
in spending among Chinese con-
sumers, a demographic that in-
dustry experts estimate makes
up over one-third of overall
global luxury purchases, were
overblown.
“Analysts underestimate the
Chinese economy,” he said. “The
fundamentals are good.”
—Jason Chow
MICHAEL NAGLE/BLOOMBERG NEWS
THE WALL STREET JOURNAL.
Deepak Chopra Offers Guidance to M.B.A.s
His course helps
Columbia students
view capitalism as
vehicle for doing good
BY LINDSAY GELLMAN
In a classroom at Columbia
Business School on a recent
afternoon, about 65 students
sat in silent meditation, eyes
closed, their smartphones and
laptops stashed out of sight.
At the front of the class,
Deepak Chopra encouraged
them to direct their analytical
skills inward.
“Bring your awareness into
your heart,” he instructed.
“Ask, ‘who am I?’ ”
Intro to Accounting, it was
not. Mr. Chopra’s course, Just
Capital & Cause-Driven Market-
ing, invokes Hindu goddesses,
features a band of urban yogis
and asks students to diagram
their “soul profile.” With guest
lectures from chief executives
and story-telling exercises, the
three-day seminar aims to teach
M.B.A.s how to design and mar-
ket ventures that both make
money and do good somehow.
Making money is something
that Mr. Chopra, an author of
84 books who is worth an esti-
mated $80 million, knows
something about. The affable
spiritual guide to Oprah Win-
frey, Lady Gaga and Arianna
Huffington, among others, be-
lieves that capitalism can be a
vehicle for good.
Companies such as Goldman
Sachs Group Inc. and Morgan
Stanley have invited him to
teach employees about mindful-
JOBS
Continued from page B1
any other sandwich shops
near one of its location for
two years, according to docu-
ments related to the probe
NY
CAREERS
Deepak Chopra, left, an author of 84 books, spoke to students at Columbia Business School last month.
ness or counsel executives and Co-taught with entrepre-
clients on using meditation to neur Sharad Devarajan, the re-
become better leaders. cent class focused on a suc-
Mr. Chopra charges a speak- cess story: JUST Capital, a
ing fee of at least $75,000— nonprofit index of corporate
though he sometimes lectures behavior backed by billionaire
for free—and was paid about philanthropist Paul Tudor
$9,000 at Columbia for the re- Jones that launched last year.
cent course. He claims to have The idea for the index was
never looked at a bank state- suggested by a student during
ment. (His wife and his accoun- a class in 2013 and for Mr.
tant attend to those details, he Chopra demonstrates that
said.) profit and purpose can coexist.
In the classroom, Mr. “My hope is that these kids
Chopra—dressed in acid-wash can create businesses that can
jeans, sparkly eyeglasses and a satisfy both needs—satisfy the
looping, crimson scarf that un- activist investor, give you a
raveled as he spoke—favors ac- good bang for your buck, a
ronyms, PowerPoint decks with good return—and yet be
rainbow font and phrases like cause-driven,” Mr. Chopra said
“slip into your inner being.” in an interview. He is on the
and benefit forms on her first
day of work, but didn’t get a
copy or understand the impact
it could have. She said she for-
year. Its preliminary findings
were that more than 12% of
American workers have signed
such contracts, including at
got about it. least 28% of those in the engi-
“I didn’t hear a single word neering and computer fields,
about it over the course of the as well as more than 10% of
next two years, during which workers in lower-skill
time many colleagues left to jobs, including personal care
Wednesday, February 3, 2016 | B5
famous friends such as Mr. Tu-
dor Jones and Lauren Bush
Lauren, the presidential niece
and chief of nonprofit FEED
Projects. The course has a sub-
stantial waitlist each year, ac-
cording to Columbia.
“Deepak has this sage aura
to him, and I thought I could
absorb some of that,” said An-
drew Asnes, an executive
M.B.A. student who took the
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
course this year.
Mr. Chopra often ventured
out of the realm of business and
into the personal during a re-
cent class. He drew a triangle on
the blackboard with a circle in-
scribed in the center to illus-
trate the elements of a mean-
ingful life, labeling the points of
the triangle “health,” “wealth”
and “love,” and the central cir-
cle, “purpose.” Students duti-
fully copied down the diagram.
During a session on story-
telling, he invited students to
come to the front of the class
board of JUST Capital. to recount a defining moment
Now in its fifth year, the in their lives—for Mr. Asnes, a
annual three-day course in former dancer with the Paul
January is among a number of Taylor Dance Company, it was
socially minded courses and his big break, when he took
seminars appearing in the cat- the stage as an understudy for
alogs of business schools an injured dancer.
world-wide. The offerings are Accounting or statistics can
in response to growing de- be gleaned from a textbook,
mand from applicants inter- but “being able to challenge
ested in social causes, said yourself from a personal-
Laura Freedman, lead M.B.A. growth perspective is much
admissions consultant at Ac- harder to do on your own,”
cess Education. Mr. Chopra said Gabby Slome, an M.B.A.
also teaches a course on lead- and entrepreneur.
ership at Kellogg School of Mr. Chopra (who is 69 years
Management at Northwestern old, “but biologically 35”)
University, for executives. shared that he meditates two
Yet Mr. Chopra’s celebrity is hours daily and rarely knows
the lure for many students— his schedule more than a day or
plus the chance to encounter two in advance—a way, he says,
ADVERTISEMENT
Career Opportunities
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS CAREERS

 
to reduce anxiety and stay pres-
ent. For students at the start of
their careers and without Mr.
Chopra’s staff to handle logis-
tics, the message was somewhat
vexing. “How can we accom-
plish that at this stage?” asked
the 29-year-old Ms. Slome.
He also advised students to
ditch the “old-school” model
of philanthropy—amassing
wealth first, then giving back,
in the style of Bill Gates or Mr.
Tudor Jones—and bake social
cause into their enterprises
from the outset. He cites snack
maker KIND LLC and eye-
glasses retailer Warby Parker
as examples of social enter-
prises that haven’t sacrificed
purpose for profit.
A good number of Columbia
M.B.A.s likely will follow the
“old school” model, at least out
of school. About 37% of last
year’s class landed jobs in fi-
nancial services, though more
students arrive at the school
with an interest in bringing
“social well being into the DNA
of their business organiza-
tions,” said Michael Malone,
associate dean for M.B.A. and
executive M.B.A. programs.
The class culminated with
teams of students pitching
their startup ideas, which
ranged from an all-natural pet
food to a low-cost computer
for use in schools. Afterward,
students lined up to pose for
photos with Mr. Chopra.
“I would love to follow him
around,” said Ms. Slome, who
works full time on her own
venture and recently started
meditating. “I’d love to be a
fly on the wall of his life for a
couple days.”
CAREERS


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ployees, including Chief Execu- said its physical stores are  ! ,   0!      "  #     
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devices. Amazon says it stocks evaluated retail outlets. the retailer is using it to ex- Applications and resumes can be submitted
the location using data it col- Mr. Mathrani noted that periment with stocking through the State of Florida People First
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The Seattle bookstore car- service Birchbox “is cutting vation for Amazon to open a Find Your
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zon’s online store, generally at and-mortar stores,” he said. turns. The CEO of the Chicago- Future Chief    

   
Hospitalist
a discount to other retailers. It Such stores also can serve based company said 38% of Merit Health River Region in Vicksburg,
To place your ad, contact us at:  

       MS seeking Hospitalists.
showcases customers’ online as mini warehouses for home online purchases for what are (800) 366-3975 or 


     

book reviews for some titles delivery in urban centers, a known as softgoods, such as sales.careers@wsj.com Contact Physician Recruiter at

   
  
and, like many independent
 
stores, has curated sections
featuring selections from em-
concept Wal-Mart Stores Inc., clothing and paper products, 601-883-5392.
© 2016 Dow Jones & Company, Inc.
Target Corp. and others have are returned to brick-and-mor- All Rights Reserved.
explored. Warby Parker has tar locations.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B6 | Wednesday, February 3, 2016 THE WALL STREET JOURNAL.

BUSINESS NEWS

Boeing Plans Early Delivery of Jet Emerson

Plans More
The 737 Max may be delays. Boeing’s test pilots

ready ahead of its

target date in the
said they plan nine months of
aerial tests for the Max, but
have given themselves 20
months—the same as the 787,
third quarter 2017 despite that plane’s bigger
technological leap.
BY JON OSTROWER “I don’t want to cut [the al-
lotted testing time] to the
Boeing Co. is on pace to bone and have to add days on
achieve a rare feat in its in- to the end, and unfortunately
dustry: delivering a new jet- we have done that in the
liner ahead of schedule. past,” said Keith Leverkuhn,
The 737 Max, an updated Boeing’s program manager for
version of its best-selling sin- the 737 Max.
gle-aisle jet, completed its While big upgrades like the
first flight Friday, a key step Max are tied to advances in
toward Boeing’s goal of deliv- engine technology, Boeing has
ering the first plane to South- incrementally improved the
west Airlines Co. in the third 737’s design over many years.
quarter of 2017. The result is a deep pool of
Behind the scenes, say in- Boeing engineers who know
dustry officials, Boeing is tell- the plane well, making more-
ing customers it might deliver extensive upgrades easier, say
the jet as much as six months current and former Boeing ex-
early. ecutives. The 737 Max adopts
Aerospace companies in re- some of the Dreamliner’s ad-
cent years have struggled with vances, such as consolidating
on-time deliveries of products, traditionally analog cockpit in-
including commercial jetliners, dicators onto laptop-sized
business jets, military trans- widescreen displays.
ports and fighter aircraft, be- But it retains some of the
cause of technical and produc- 737’s 1960s attributes, such as
tion problems. Boeing hasn’t its switch-laden overhead
Cutbacks
BY BOB TITA
Emerson Electric Co. said
it would further restructure
its operations as slumping oil
prices weigh on the industrial
conglomerate’s largest busi-
ness unit.
Fiscal first-quarter sales for
Emerson’s process-manage-
ment unit sank 14% from a
year earlier to $1.8 billion, as
profit declined 31% to $271
million. The business, which
accounted for nearly two-
fifths of Emerson’s total sales
in the quarter, supplies instru-
ments and software to control
oil refineries, chemical plants
and other industrial processes.
“We’re going to have to
take some additional restruc-
turing in 2016 and 2017 in that
space,” Chief Executive David
Farr told analysts on Tuesday.
“We’ll need to take [produc-
tion] capacity off line.”
Emerson expects to spend
about $70 million on business
restructuring during its fiscal

BOEING; TOP: MUSEUM OF FLIGHT SEATTLE

been immune. Its flagship 787 panel and analog indicators, year ending Sept. 30. The St.
Dreamliner and the updated which helps airlines keep their Louis-based company spent
747-8 version of its iconic pilots trained and certified for $221 million to reduce costs
jumbo jet were years behind the new jet—critical for their and reorganize its businesses
schedule, and suffered billions cost calculations. in 2015. Of that amount, about
of dollars in cost overruns. While the list price of a 737 40% was spent on the process-
The 737 Max is the fourth has steadily increased—cur- management unit and one-
big change in the 50-year his- rently $110 million for the third was spent on Emerson’s
tory of the 737, the best-sell- most popular model of the network-power business,
ing jetliner of all time. Boe- Max, the cost to airlines after which Mr. Farr plans to sell or
ing received its first orders for discounts has come down. spin off later this year.
the model in late 2011 at a Above, a prototype of the original Boeing 737-100 cockpit. Below, a rendering of the 737 Max’s flight deck. A new 737 Max sells for “If the market continues to
time of high fuel prices. about $51 million, including get challenging, we will con-
The plane boasts new en- “The 737 has been the meat dominance of the single-aisle jet. Progress on the 737 Max average discounts, compared tinue to do additional restruc-
gines and improved aerody- and potatoes for the com- market, and it had a jump on could still hit obstacles. Flight with an inflation-adjusted $58 turing,” he said. Mr. Farr
namics that the company said pany,” said Herb Kelleher, a upgrading its own offering. testing, for example, could re- million for a new 737-400 in added he doesn’t expect capi-
could cut fuel consumption by founder and former chief exec- Airbus began signing up veal unexpected problems. 1990, estimates Avitas, an air- tal spending on equipment in
at least 14% compared with utive of Southwest. “I think it customers for a new version of Still, the 737 Max is an up- craft valuation and consulting the oil and gas industry to re-
prior models. Boeing needs a has been a sustaining element its competing A320 with more date, rather than an all-new firm. The same has been true cover until the middle of 2017.
smooth transition to the Max for Boeing for a considerable fuel-efficient engines a year model like the 787, requiring for Airbus jets. For the quarter ended Dec.
from the existing plane to en- period of time, something they before Boeing started selling fewer tests. The downward pressure on 31, Emerson reported a profit of
sure its cash-cow status con- could always count upon in the 737 Max. Boeing also is planning con- prices is reflected in airplane $349 million, or 53 cents a
tinues uninterrupted. bad times as well as good.” Airbus on Jan. 20 delivered servatively, allowing six years factories that have been trans- share, down from $525 million,
Analysts estimate Southwest only flies 737s to Deutsche Lufthansa AG the from program launch to deliv- formed over the past two de- or 75 cents, a year earlier. Ex-
the 737 accounts for between and has ordered 974 of them, first of those A320neo jets, ery, compared with just four cades. Boeing’s Renton, Wash., cluding costs for selling or spin-
40% and 45% of the operating including 200 Max versions. which through 2015 had gar- years it originally allotted for plant builds 42 737s a month, ning off businesses and other
profit of the company’s com- Rival Airbus Group SE has nered 4,471 orders, compared the 787—which ended up be- twice the rate of 10 years ago business portfolio reshaping,
mercial-airplane business. eroded Boeing’s traditional with 3,072 for the new Boeing ing nearly eight years after and all under the same roof. earnings were 56 cents a share.

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 t
Edmonton -0s <0 1 2 3 4 5 6 7 8 9 10 11 12 66 Sight-related 28 JFK’s veep
10s 10s 0s
prefix 29 “The Death of
V
Vancouver C l ary
Calgary 13 14 15
0s 20s 10s
67 Legendary Ivan Ilyich”
40s Seattle 20s 16 17 18 Bruin author
ip
Winnipeg
30s 20s
20s 68 Crying shame 34 Waiter-to-patron
Montreal 30s 19 20 21
Portland
P d l
Helena 30s 40s address
Bismarckk 69 Bother with
Billings ttawa
Ottawa A g t
Augusta 40s 22 23 24 25 26
g
Eugene barks 36 Secret location?
Boise 20s T
Toronto 50s
Mpls./St.. Paul
Pau Albany
A b
bany t
Boston
27 28 29 30 31 70 Network: Abbr. 38 Surpasses
ff l
Buffalo rtford
Hartford 60s
Milwaukeek Detroit 50s oux FFalls
Pierre Sioux ll
Down 39 “Ya think?”
50s 10s New Yorkk
ew Y 70s 32 33 34 35 36
Reno Ch
Chic g
Chicago
Cheyenne Omaha
es Moines
Des Cleveland Ph hil d lphi
Philadelphia 1 John Grisham’s 40 A/C abbr.
10s Saltlt Lake h Pittsburgh
P b h 80s 37 38 39
Sacramento L ke City
C
City Sprin
p
Springfield di p
fi ld Indianapolis first bestseller 41 Hermione’s
Denver hington
Washingtongton D.C.
DC 90s
San
an Francisco 20s Colorad
C l d
Colorado Top k
Topeka Kansas C harles
Charleston 40 41 42 43 44 45 46 47 2 Royal eventual
City h
Richmond d 100+
LLas Springs
p St.. Louis
L
Lou Louisville
L
Lou entourage husband
Ve g
Vegas 30s Wichita hit
l igh
Raleigh h 48 49 50 51 52
Los A
Ange
Angeles
Nashville
h ill
50s Ch 3 MRI component 42 Goddess of
anta Fe
Santa Charlotte
l tt
LLittlee Rockk
Memphis
p 53 54 55 56 4 Emilia of “Game abundance
Phoenix
Ph Albuquerque C b
Columbia
San Diego 60s Oklahoma City
h
Birmingham Atlanta
A Warm Rain
of Thrones” 45 Fitting
Tucson 40s 57 58 59
Ft. Worth Dallas
D ll Jack
Jackson 70s 5 Hippy dance 46 Rocky phase of
Cold T-storms
El P
Paso
50s JJacksonville
k ill 60 61 62 63 64
6 Handling the spaceflight
-0s 60s b
Mobile
A ti
Austin Houston
t Stationary Snow situation 47 State you don’t
Orlando
l d 65 66 67
0s ew Orleans
New
want to be in
10s 80s an Antonio
San Tampa
80s 7 Quite zealous
Honolulu
l l Showers Flurries 68 69 70 50 “___ Little
20s Anchorage
A h 70s
Miami 8 Epitome of
30s 70s purity Teapot”
40s Ice
TAILOR SWIFTIES | By Samuel A. Donaldson 9 Lustful god 52 80 shares, say
54 Abrasive stuff
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 23 “Fine, I’ll remove 49 AFL partner 10 Flow out
1 Pod opening? the lining from 11 Copying 55 New Mexico’s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
Omaha 26 13 pc 30 13 s Frankfurt 45 36 sh 46 43 r 51 Fast food
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice your coat,” the state flower
Orlando 83 65 pc 76 50 t Geneva 46 35 sh 43 36 r 4 Guitar lesson introduction of 12 Small drink
Today Tomorrow Philadelphia 66 51 r 52 30 pc Havana 84 66 s 84 67 pc topic tailor ___ 1957 58 Take a second
City Hi Lo W Hi Lo W 15 Hoppy drink tour
Phoenix 58 38 s 65 41 s Hong Kong 60 54 pc 64 52 pc
9 House position 27 Hum right along 53 “I’ve torn the
Anchorage 26 22 i 30 25 sn Pittsburgh 62 32 r 37 22 sf Istanbul 58 51 s 58 43 pc 20 Still in the closet, 59 “Enchanted”
30 Frequent pants” was the
Atlanta 64 39 r 53 30 pc Portland, Maine 46 44 r 51 28 pc Jakarta 87 75 sh 88 76 c 13 Hesitate (like a perhaps role for Anne
Austin 59 28 s 60 28 s Portland, Ore. 46 43 r 51 41 sh Jerusalem 58 40 s 62 46 pc tailor?) WikiLeaks target tailor’s ____
Baltimore 63 45 r 51 27 c Sacramento 54 42 c 59 37 pc Johannesburg 86 58 pc 82 56 pc confession 21 Fluffy trio? Hathaway
31 World Cup cry
Boise 40 29 pc 40 24 sf St. Louis 43 25 pc 44 29 s London 47 39 pc 56 46 c 14 Like the Islamic 24 Complete 60 iPad download
Boston 52 50 r 53 33 c Salt Lake City 30 18 sf 33 22 sf Madrid 58 34 pc 54 36 s calendar 32 See 62-Down 56 More ominous
nonsense 61 Rightmost
Burlington 50 41 r 43 25 pc San Francisco 55 45 c 57 46 pc Manila 90 78 pc 90 77 pc 33 Mamie’s 57 “That’s exactly
Charlotte 68 48 t 61 31 pc Santa Fe 33 8 pc 39 16 pc Melbourne 69 59 c 71 58 pc
15 Cellist Casals 25 Archie Manning’s marking on
16 When the predecessor one yard of
Chicago 39 20 sf 31 22 pc Seattle 48 43 r 50 43 sh Mexico City 77 45 pc 72 41 pc youngest son some faces
Cleveland 59 30 c 35 24 sf Sioux Falls 21 10 pc 28 9 pc Milan 54 35 sh 54 36 s flight’s due, for 35 Forum language colored fabric,”
Dallas 53 29 s 56 34 s Wash., D.C. 64 49 r 51 32 c Moscow 37 33 i 35 25 pc said the tailor 26 Winter home, 62 With 32-Across,
short 37 “I can sew for some prisoner’s plea
Denver 29 7 pc 37 16 c Mumbai 90 71 pc 89 72 pc in a ___
them back
Detroit
Honolulu
54 28 c
82 69 pc 82 67 s
36 24 pc
International Paris
Rio de Janeiro
46 39 pc
91 75 s
52 44 c
93 77 pc
17 It might be
unshakable together” was 60 Needed a Previous Puzzle’s Solution
Houston 62 36 s 59 33 s Today Tomorrow Riyadh 69 44 sh 66 38 s the tailor’s ___ doctor
18 Up S T A R G A R S B T A O S
Indianapolis 46 25 pc 35 24 pc City Hi Lo W Hi Lo W Rome 59 43 pc 56 37 s A O N E E L I T O E X I T
Kansas City 32 20 pc 43 22 s Amsterdam 44 40 sh 49 45 r San Juan 82 72 pc 82 71 pc 19 “That customer 40 Yankee Stadium 63 Immune G O D S M A G O O A L L Y
Las Vegas 49 33 s 55 37 s Athens 67 51 s 63 50 pc Seoul 37 22 s 39 17 c could be a setting response T R A D I N G L P A C E S
H E M A N L I U
Little Rock 52 29 s 51 30 s Bangkok 92 69 pc 92 69 s Shanghai 44 34 s 45 33 c
model,” the tailor 43 What a prankster participant P H I L A D E L P H I A
Los Angeles 63 43 pc 69 47 s Beijing 45 19 s 39 20 pc Singapore 86 77 pc 87 79 c might drop A T O L L OM E N S A S H
Miami 80 70 pc 80 64 pc Berlin 44 35 sh 40 34 r Sydney 80 67 s 76 68 sh noted ___ 64 Org. concerned G E N E W A I F S S I L O
Milwaukee 37 20 sn 28 22 pc Brussels 43 36 sh 50 46 r Taipei 58 56 r 64 55 r 22 Wrong way to 44 Rooney of “Carol” with the class O A T G E T G O D A L E Y
G R O U N D H O G D A Y
Minneapolis 23 8 pc 26 10 sf Buenos Aires 84 66 s 88 67 pc Tokyo 45 36 pc 49 38 pc answer SAT 48 Blouse, for struggle? S U D A V O I D
Nashville 57 32 pc 44 26 s Calgary 30 15 pc 38 26 pc Toronto 53 31 r 36 25 pc T H E S I X T H S E N S E
New Orleans 68 45 r 59 40 s Dubai 71 62 pc 74 60 s Vancouver 47 40 r 48 43 r questions example 65 Sites with slips P I E D N O R A H A L UM
New York City 60 49 r 54 35 pc Dublin 46 42 r 52 46 c Warsaw 45 34 pc 40 33 sn E M I T G U I S E R A C E
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 45 24 pc 53 30 s Edinburgh 42 38 pc 48 46 sh Zurich 42 34 sn 41 40 r Z E R O S T O P S A M E X

© 2016 Dow Jones & Co., Inc. All rights reserved. 6DJ2113

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GLOBAL FINANCE C3 | IN THE MARKETS C4 | MARKETS DIGEST C5| INTERNATIONAL PROPERTY C6-8
VICTOR J. BLUE/BLOOMBERG NEWS

Coping, Even at
Sign of Tech Pain $30 a Barrel
HEARD ON
Startups buy staffers’ stock as IPOs stall MARKETS | C2 THE STREET | C12
© 2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | C1
DJIA 16153.54 g 295.64 1.80% S&P 1903.03 g 1.87% NASDAQ 4516.95 g 2.24% 10–YR. TREAS. À 30/32, yield 1.864% OIL $29.88 g $1.74 EURO $1.0920 YEN 119.97 See more at WSJMarkets.com

Sea of Green
Trade-weighted U.S. Dollar Index

25%
Investors Retreat as Dow Plunges
Stock markets around Investors around the world Nikkei 225 and Hong Kong’s ing the promise of regular peri- highs reached in August’s mar-
Major sold stocks, registering losses of Hang Seng Index were both odic payouts that investors covet ket rout.
20 currencies the world swoon; 2% or more in many indexes down more than 3%. at a time when interest rates are “It tells me that perhaps the
Other bond yields fall, oil across Europe, and purchased The action came on a day that low and markets are in flux. panic isn’t there,” said Rob Bern-
important government bonds. The yield on had no major economic news be- Yet even as stocks tumbled stone, managing director in eq-
15 trading settles below $30 yond a few downbeat earnings and bonds gained Tuesday, uity trading at Credit Suisse.
partners By Dan Strumpf, reports. Selling was intense in closely watched sentiment “People don’t think the world is
The global retreat from risk Ira Iosebashvili economically sensitive sectors, gauges didn’t signal unusual lev- about to end, but they do think
10 intensified Tuesday, sending the and Min Zeng such as energy, banks, asset- els of fear, a sign that investors that, on a risk-adjusted basis, eq-
Dow industri- management firms and cruise said likely suggests that a whole- uities don’t deserve the valua-
TUESDAY’S als to a 295.64 the 10-year U.S. Treasury note lines, and in industries whose sale flight to the exits isn’t likely. tion that they had this morning.”
5 MARKETS point decline tumbled to 1.864%, a level last shares often led the market dur- Gold fell 60 cents, or less than Yields on two-year govern-
and pushing seen in the spring of 2015. Yields ing the long U.S. bull run start- 0.1%, and Wall Street’s fear ment bonds in Japan and Fin-
U.S. crude fu- fall when prices rise. ing in 2009, such as biotechnol- gauge, the CBOE Volatility Index land set all-time lows below
0 tures to their deepest two-day The stock selloff continued ogy. of options-derived trading ex- zero. Yields from Germany,
2014 ’15 drop since the financial crisis. early Wednesday in Asia. Japan’s Utility stocks rallied, reflect- pectations, remained far below Please see MARKET page C4
Source: Federal Reserve Bank of St. Louis
THE WALL STREET JOURNAL.

Manager’s
Fed Can’t Exit Hits
Duck the Stock Price
Dollar’s Of Waddell
Strength Shares of Waddell & Reed
Financial Inc. fell 14% in heavy
trading Tuesday after the in-
vestment firm announced weak
The U.S. dollar sits at the Richard Dreyfuss results and the retirement of a
center of a tangle of nega- and Blythe marquee fund manager, under-
tive feedback loops that are Danner in ABC’s scoring investor concerns
roiling financial markets and ‘Madoff.’ Bernard about the health of the U.S. as-
economies around the world. Madoff, inset, set-management sector.
It is coming to the point swindled billions
where the Federal Reserve from investors. By Matt Wirz,
may have to try to cut Sarah Krouse
through the snarl. and Mike Cherney
The dollar’s strength over
the past year and a half is Michael L. Avery, president
unprece- of the Overland Park., Kan.,
dented. It firm and portfolio manager of
has gained its largest mutual fund, the Ivy
23% against Asset Strategy Fund, will re-
the euro and tire June 30.
17% against ERIC LIEBOWITZ/ABC; JIN LEE/BLOOMBERG Ivy Asset Strategy was a
NEWS (INSET)
HEARD ON the yen— strong performer in the years
THE STREET moves that immediately following the fi-
JUSTIN are eclipsed nancial crisis, seeing large in-
LAHART by what it flows. But in recent years it
has done has taken losses on large bets
versus a host on gold and Chinese stocks,

‘Madoff’: Charmer, Egotist, Fiend

of emerging-market curren- among others, raising investor
cies. The dollar has gained concerns about the risks of
76% on the Brazilian real, concentrated bets at a time of
51% on the South African softening global growth, vola-
rand and 121% on the Rus- BY JAMIE HELLER pink jacket, is about to be- Mr. Madoff has been the sub- Madoff less physically than tile markets and rising risk
sian ruble. AND MICHAEL ROTHFELD come his next victim. Mr. Ma- ject of countless news ac- does Robert De Niro’s version aversion.
These moves are making doff shows not a hint of des- counts and several books since in HBO’s coming Madoff Assets under management
it difficult for U.S. companies Early in ABC’s two-part se- peration. “He’s waiting for me he admitted in December 2008 biopic. But he embodies Mr. at the fund hit $36 billion at
to compete globally on price, ries about Bernard Madoff, the to pitch him,” Mr. Madoff ex- to the multibillion-dollar Ponzi Madoff’s criminal aura, at its peak two years ago but
and also are cooling already legendary swindler is at a plains to the audience. “I don’t scheme that sent him to once charming, egotistical, de- have since dropped to $15 bil-
low inflation at a time when Connecticut coun- pitch—right now, only one prison for 150 years. vious, forceful, funny and lion, according to Morningstar
the Fed wants it to go REVIEW try club trying to thing counts. Whoever talks Now, the master fraudster verging on sociopathic. Mr. Inc.
higher. Further dollar reel in a wealthy first loses.” whose crimes shocked the Madoff walks the audience Waddell on Tuesday posted
strength risks making the investor. The camera zooms between world comes alive as a three- through the fraud as the a 22% decline in fourth-quar-
situation even worse, while Mr. Madoff is badly in need Mr. Madoff and Mr. North, dimensional character through movie’s narrator, introducing ter earnings and set plans to
intensifying global pressures of expanding to replenish his who capitulates. “So, I am glad actor Richard Dreyfuss in “Ma- key players, setting scenes and cut expenses.
that could put the U.S. econ- Ponzi scheme. Blake North, our lawyers put us together.” doff.” recalling the childhood trauma “Heightened market volatil-
Please see DOLLAR page C4 the fictional rich man in the The manipulative mind of Mr. Dreyfuss resembles Mr. Please see MOVIE page C2 Please see FUNDS page C2

GoPro: Can You Take This Ride?

The World’s Tallest Buildings
A skyscraper being built in Jeddah aims for a record-breaking height that’s expected to exceed 3,281 feet.

BY STEVEN RUSSOLILLO cast a skeptical eye toward wearable high-definition 3,000 feet
any future rallies. video recorders. But its ac-
From a big momentum For instance, since peak- tion cameras struggled to
play to a short seller’s ing in October 2014, there achieve widespread adop-
dream, GoPro Inc.’s stock have been six instances in tion. Meanwhile, increasing
has seen it all in less than which GoPro shares rallied at competition from overseas 2,000
two years on the public mar- least 10%. That includes the manufacturers and better
kets. whopping 64% rally between smartphone-camera technol-
AHEAD OF After surging March and October. Yet in ogy have weighed on GoPro’s
THE TAPE nearly 300% to that instance, it took less results.
its October than a month for those gains Plans for a consumer
1,000
2014 high, the to be wiped away. drone could be promising,
camera maker’s shares have For years, GoPro bene- but GoPro faces a crowded
since lost more than 90% of fited from strong brand hardware market. And while
their value and sit near re- identity among surfers and some bullish observers are
cord lows. cyclists who sported the pegging hopes on GoPro’s
With the stock trading media plans, the company 0
around $10, it is only natural has yet to show it can make Jeddah Tower Burj Khalifa Shanghai Makkah Royal One World Taipei Chrysler Building
for bargain hunters to sniff Anti-Hero real money from content. (under construction)
Saudi Arabia
(world’s tallest
building), Dubai
Tower,
Shanghai
Clock Tower, Trade Center,
Mecca New York
101,
Taipei
(61st tallest),
New York
around when GoPro reports GoPro's stock price since its GoPro does appear beaten
fourth-quarter results on initial public offering down. It fetches a price-to- > 1 km (3,281 ft.) 2,717 2,073 1,972 1,776 1,667 1,046
Wednesday. And since GoPro sales ratio of 0.81 times,
$100 COMPLETED Est. 2018 2010 2015 2012 2014 2004 1930
already unveiled disappoint- some 75% below its average
ing preliminary figures last as a public company. And it Note: Includes antennas Source: The Council on Tall Buildings and Urban Habitat THE WALL STREET JOURNAL.
80
month, much of the bad trades at 14 times forward
news for the period ending
in December might be priced
in already.
60

40
earnings, well below the
Nasdaq Composite’s average.
But it is cheap for a rea-
Jeddah Aiming for Towering Height
But as with most volatile son, looking more like a BY MARGHERITA STANCATI powerhouse. billion needed to complete the
stocks, GoPro shares in re- 20 value trap than a fun ride. The skyscraper, which will sprawling development around
cent months have repeatedly Investors should have JEDDAH, Saudi Arabia—The comprise condominiums, of- the tower will materialize, and
0
looked set to hit rock bot- learned by now to avoid builder of the world’s future fice space and hotel rooms, is whether demand for space
tom, only to then fall further. 2014 ’15 ’16 daredevil antics. tallest tower expected to open by 2019. But might dry up.
Without a specific catalyst to Source: FactSet PROPERTY hopes it will re- Saudi Arabia’s economy heav- Jeddah Economic Co., the
juice sales, investors should THE WALL STREET JOURNAL. Email: tape@wsj.com REPORT define the city- ily depends on petroleum rev- private joint venture develop-
scape in this enue and has been hurt by the ing the project, has financing
INDEX CD Rates............................................................. C9 Futures............................................................... C12 Markets Digest.............................................. C5 New Highs & Lows............................... C8 desert region steep drop in oil prices. That to complete the $1.5 billion
Bond Tables............................................. C11 Dividend News.............................................. C11 Heard on the Street................................. C12 Money Rates.................................................. C11 Property Report...................................... C6 and project the Saudi king- has raised questions about tower at the center of the site.
Cash Prices................................................. C9 Exchange-Traded Funds......................... C9 In the Markets................................................ C4 Mutual Funds.................................................. C9 Stock Listings........................................ C10
dom’s ambition to be a global whether the estimated $20 Please see TOWER page C8
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C2 | Wednesday, February 3, 2016
FUNDS
Continued from the prior page
ity has been a consistent
theme throughout 2015, chal-
lenging performance and caus-
ing anxiety with investors,”
said Chief Executive Hank
Herrmann. “In addition to
market challenges, we have
had to manage increased re-
demption pressure and weaker
sales in some of our key strat-
egies due in part to underper-
formance in these funds.”
The decline is the latest
sign of the problems facing
smaller asset managers that
specialize in active investing,
as investors migrate to larger
firms that offer low-cost funds
tracking market indexes.
Firms like Waddell & Reed
that specialized in high-yield-
ing funds invested in risky se-
curities have suffered more
than most as market turmoil
and the Federal Reserve’s
first interest rate increase in
nine years spurred investors
to move into safer asset
classes.
Waddell shares tumbled
$3.81 to $22.69, putting them
within a dollar and change of
their 52-week low. Trading
volume Tuesday was triple the
daily average.
The shares have lost more
than a third of their value
since the asset-management
industry was hit by a post-
Thanksgiving selloff that was
punctuated by news that
Third Avenue Management
LLC, a unit of Affiliated Man-
agers Group Inc., had halted
redemptions at a fund that
had made large investments in
low-rated, hard-to-sell securi-
ties.
Other asset managers were
hit hard Tuesday as the Dow
industrials slumped nearly
300 points and the KBW Nas-
daq Banks index of large com-
mercial lenders declined more
than 3%.
BlackRock Inc., the largest
U.S. asset manager, fell 3.5%,
while AllianceBernstein Hold-
ings LP dropped 4.5% and
Legg Mason Inc. slid 5.5% and
T. Rowe Price Group Inc.
slipped 3%.
Affiliated Managers shares
fell 7.3% after the firm re-
ported net outflows in the fi-
nal quarter of the year but
beat some analyst expecta-
tions for fourth-quarter earn-
ings.
In January, U.S. junk bonds
lost 1.6% in total return, which
includes price changes and in-
terest payments, the worst
start to a year since 1990, ac-
cording to Barclays data.
Mr. Avery joined Waddell in
the early 1980s and has been a
co-portfolio manager on the
asset-strategy fund since 1997.
The firm appointed two addi-
tional co-portfolio managers a
year and a half ago.
Thomas Butch, chief mar-
keting officer at Waddell &
Reed, said on a call with ana-
lysts Tuesday that executives
hoped clients would be com-
fortable enough with the man-
agers that joined the Ivy Asset
Strategy fund in 2014 and that
Mr. Avery’s retirement
wouldn’t be “a materially dis-
ruptive event” for flows.
Mr. Butch said he believes
the heaviest outflows have
passed. He said broker-dealer
reaction to poor performance
had already fueled outflows
over the past year and the risk
of further changes “is not any-
where near what it used to
be.”
Mr. Avery, who spoke on
the call, was cautious on the
current market environment.
Managers of the fund had
about 37% of its assets in
“very liquid securities” includ-
ing short-term bonds, longer-
dated sovereign bonds and
gold, he said. They have used
derivatives to hedge the fund’s
exposure to equities.
BUSINESS.
CULTURE.
TECHNOLOGY.
1WSJC1114
Problems in Wealth Unit Trip Up UBS
BY JOHN LETZING
ZURICH—After the financial
crisis, UBS Group AG slimmed
down its volatile investment
bank and turned its focus on
the supposedly more consis-
tent business of wealth man-
agement.
But the sweeping financial-
market turmoil and the stark
flight of capital in emerging
markets have made plain the
weaknesses in that strategy.
In fourth-quarter results
posted Tuesday, UBS said
wealth-management clients in
places such as the Middle East
and Russia pulled money from
their accounts; others stuck
with UBS but pulled back from
trades and sat on cash.
All told, UBS’s wealth-man-
agement business recorded 3.4
billion Swiss francs ($3.3 bil-
lion) in net outflows in the
fourth quarter. Clients in
emerging markets pulled 3.5
billion francs out during the
period, more than came in
during the same period from
Blythe Danner’s Ruth Madoff is charismatic and expert at small talk; the sons, too trusting.
MOVIE
Continued from the prior page
of watching his father’s busi-
ness fail, and having neighbors
pity them. In that moment, he
says, he was determined that
no one would ever feel sorry
for him.
Mr. Dreyfuss portrays a
compartmentalizer who gig-
gles with his grandchildren in
his lush Montauk beach house
while plotting to protect his
Ponzi scheme, and a con man
burdened with the weight of a
secret but no guilt about his
deceits.
The series is a reminder of
the groupthink mentality that
can grip investors, depicted as
more than willing to rely on
reputation than do their own
research, and of the adage
that if it is too good to be
true, it probably isn’t.
The movie, which airs
Wednesday and Thursday at 8
p.m. EST, serves as a tutorial
from the consummate con man
on how to attract—or as Mr.
Madoff puts it, seduce—new
investors, even when they are
marks. Cultivate an air of ex-
clusivity. When asked, claim
your methods are proprie-
tary. Provide consistent re-
turns. Exude a studied noncha-
lance.
When a widow considers
putting her Madoff money into
a savings account, Mr. Madoff
writes her a check. “Yeah, the
check’s no good,” he informs
viewers. “But look at her eyes.
She trusts me.”
Finance
Watch
CIT GROUP
Profit Disappoints
CIT Group Inc.’s outgoing
chief executive, John Thain,
hasn’t convinced investors that
his plan to overhaul the lender
goes far enough.
CIT shares dropped 7% on
Tuesday after the company re-
leased a disappointing earnings
report and Mr. Thain dismissed
calls from some investors to sell
off more parts of the company.
CIT said in October it would
MONEY & INVESTING
clients in Asia and Switzerland
combined.
Pretax operating profit at the
business fell 47% from a year
earlier, to 344 million francs.
UBS issued a gloomy fore-
cast, warning that the eco-
nomic challenges, low interest
rates and poor market perfor-
mance that have affected the
bank’s recent results “are un-
likely to be resolved in the
foreseeable future.”
Investors pushed UBS’s
shares down 6.8% in Zurich.
Wealth management is sup-
posed to be a relatively stable
and profitable business. Rich
clients bring large accounts
and keep them in place; the
bank earns fees for manage-
ment and for ancillary services
and advice.
But UBS’s clients were less
stable than perhaps investors
thought. Some of them, UBS
said, needed to pull money out
as markets melted down. Cli-
ents in the Middle East and
Russia, for example, had “li-
quidity requirements”
While Mr. Madoff has his
tricks, the movie also makes
clear that he survived so long
due to the failings of others. It
depicts Securities and Ex-
change Commission regulators
who don’t make a call to check
a phony account number that
could have exposed him. And
there is the willingness by cli-
ents to gloss over red flags
that might end a good thing.
The production acknowl-
edges it takes liberties, which
let us in on the private conver-
sations and dynamics of the
Madoff clan. Those include
moments of intimacy—and
Mr. Madoff giggles
with grandchildren
while plotting his
Ponzi scheme.
later, betrayal—between Mr.
Madoff and his wife, Ruth,
who is charismatic and expert
at small talk as played by
Blythe Danner.
Overall, however, the events
are in line with the known arc
of Mr. Madoff’s fraud and his
downfall, and the many char-
acters and institutions in the
real-life drama.
Harry Markopolos, who
long insisted Mr. Madoff was a
fake, was tortured by his in-
ability to get regulators’ atten-
tion. In one of many barbs the
movie throws at the SEC, Mr.
Markopolos, who speaks in
statistical formulas, is urged
by an ally at the agency to
“make it so simple that a sec-
pursue a potential sale or
spinoff of its $11 billion commer-
cial-air unit. When asked on
Tuesday if the rail business
would be spun off as well, Mr.
Thain said the unit has attrac-
tive returns and doesn’t have
some of the same issues as the
air business.
CIT said fourth-quarter profit
declined as expenses from acqui-
sitions and divestitures offset
higher revenue. Earnings were
$144.5 million, or 72 cents a
share, down 42% from $251 mil-
lion, or $1.37 a share, a year ear-
lier. Mr. Thain said that perfor-
mance of CIT shares and the
broader market indicate that
people think “a recession is im-
minent,” a perspective he thinks
is unfounded.
— Rachel Louise Ensign,
Lisa Beilfuss
prompted by low energy
prices, UBS Chief Financial Of-
ficer Kirt Gardner told ana-
lysts during a conference call.
Overall, UBS said, it re-
duced the amount of client
loans secured by assets held in
custody. That may have been
prudent, given market condi-
tions, but it also contributed
to the decline for the wealth-
management business.
Clients who switched to
cash also ate into UBS’s profit.
Short-term interest rates in
Switzerland are negative, so
funds that have to be invested
in highly liquid assets can ac-
tually shrink. UBS has sought
to preserve its profit, in some
cases by encouraging clients
with big cash deposits to leave
during the quarter.
Investors weren’t pleased by
the results, despite an uptick in
the wealth business in the U.S.
and although net income for the
last three months of 2015 was
949 million francs, up from 858
million francs a year earlier,
boosted by a tax benefit.
GIOVANNI RUFINO/ABC
ond-grader can understand it.”
Mr. Madoff’s brother, Peter
Madoff, the firm’s chief com-
pliance officer, is portrayed by
Peter Scolari as a weak, sensi-
tive soul who doesn’t under-
stand the extent of the fraud
but knows something is amiss
as he signs fabricated corpo-
rate documents.
The movie takes a strong
view on one of the biggest
questions to surround the
scandal: What did Mr. Mad-
off’s sons, Mark and Andrew,
know? They maintained noth-
ing, and the movie endorses
that belief. It shows the men
not in cahoots with their fa-
ther, but too trusting of him.
Mark committed suicide in
2010, exactly two years after
his father’s arrest. Andrew
died of cancer in 2014.
After Mr. Madoff discloses
that he has been running a
Ponzi scheme, a bewildered
Ruth Madoff gasps, “I don’t
understand this, you’re not a
criminal!”
“Yes, Ruthie, I am a crimi-
nal,” he retorts.
Mr. Madoff’s demise came
after the bust of the housing
market, the subject of another
recent movie, “The Big Short.”
That implosion ruptured pub-
lic trust in the financial sys-
tem broadly. The violations by
Mr. Madoff were far more per-
sonal. He looked people in the
eyes, asked for their trust, and
lied to their faces.
Both films are good enter-
tainment. But years after the
debacles they chronicled, they
also underscore the value of
skepticism, and of acting on it.
ARGENTINA BONDS
Deal With Italian
Creditors Is Set
Argentina has reached a pre-
liminary deal to pay thousands
of Italian holdout creditors that
refused previous government ef-
forts to restructure defaulted
debt, the government and repre-
sentatives of the bondholders
said.
The agreement, which still re-
quires approval by Argentina’s
congress, is an important first
step for President Mauricio
Macri’s government as it tries to
resolve a long-running dispute
with holdout creditors that have
prevented Argentina from ac-
cessing global financial markets
during the last decade.
Task Force Argentina, a group
that represents the 50,000 Ital-
THE WALL STREET JOURNAL.
that can bring sharp ups and
downs.
UBS has significantly re-
duced the size of its invest-
ment bank, which now re-
ENNIO LEANZA/EUROPEAN PRESSPHOTO AGENCY
ceives about one-third of the
lender’s allocated capital.
“Wealth management is, or
can be, volatile as well,” Mr.
Venditti said. “At the end of
the day, if clients sit on their
hands and don’t do anything,
[wealth managers] will feel it.
That’s how this business
works.”
Mr. Venditti said he buys
into Mr. Ermotti’s message
UBS CEO Sergio Ermotti says, that UBS should focus on the
‘I’m not preoccupied’ by the quality of the assets it man-
market reaction. ages, rather than the quantity.
The analyst also suggested
“I’m not preoccupied” by other banks should follow suit.
the reaction, UBS Chief Execu- A wealth-management mar-
tive Sergio Ermotti said in an ket that Credit Suisse Group
interview. Still, he said, he was AG abandoned recently, the
“puzzled by this short-term U.S., actually helped to bolster
view.” UBS’s quarterly report. UBS
Vontobel analyst Andreas said its wealth-management
Venditti said UBS’s results business in the Americas
demonstrate that investment pulled in $16.8 billion in net
banking isn’t the only business new money in the quarter.
Startups Buy More
Stock From Workers
As IPO Market Slows
BY TELIS DEMOS ees. “When that ratio is
changing, it suggests investors
Public companies weren’t have leverage to buy more
the only ones buying back preferred than common,” Mr.
stock last year. Siegel said.
Nasdaq Private Market, a That sentiment likely stems
unit of exchange operator from the chill that fell over
Nasdaq Inc. that provides the private-fundraising market
software to private companies in 2015, when big investors
to manage employee share pulled out of funding rounds
sales, says private startups and marked down the value of
bought back $940 million of their stakes in private start-
employee stock last year via ups, in part because of some
its platform, an increase of disappointing public debuts.
more than 40% from 2014. A number of highflying
The rise in these sales startups are under pressure
shows how investors and em- now. Some tech companies
ployees are adjusting to a that have gone public have
much less hospitable fundrais- watched their shares fall be-
ing environment for technol- low their peak private valua-
ogy startups after several tions, while mutual funds have
years of booming valuations. marked down the value of
More private startups are
letting some employees cash
out because the market for
initial public offerings has
their private holdings.
Shares of mobile payments
company Square Inc., for ex-
ample, this week fell below
slowed considerably, delaying their $9 initial public offering
the opportunity to sell pub- price, ending Tuesday’s trad-
licly traded shares, said Bill ing at $8.47. The company’s
Siegel, head of Nasdaq Private
Market.
These organized employee
share sales, known as second- $940 million
aries, are a way for employees The amount of stock private
to lock in profits at the com- companies bought from
pany’s current valuation. employees through Nasdaq
“We’re seeing earlier-stage Private Market last year
companies on a steep trajec-
tory doing these transactions
earlier in the life cycle,” Mr. November IPO price was sev-
Siegel said. “They see it as a eral dollars below the highest
strategic retention tool for price at which it had raised
employees who are working money privately.
hard and want to see some re- Companies such as Twitter
turn on their equity.” Inc. and Etsy Inc. also are
Institutional investors also trading both below their IPO
appear to be seeking more prices and their peak private
protection for their bets on valuations. Twitter’s shares
tech startups, according to fell 10% to $16.08 after an ana-
Nasdaq’s report. Companies lyst downgrade Tuesday, be-
typically fund employee-stock low the $17 price at which
buybacks with proceeds from some employees sold shares in
a fundraising round. 2013 before it went public, ac-
In such deals, common cording to its IPO prospectus.
shares, which offer investors Declining IPO prices, mean-
no protections from falling while, are weighing on pri-
valuations, are bought out and vate-company valuations.
the new investors get for pre- Dropbox Inc. and Snapchat
ferred shares, which often Inc. were marked down by
contain provisions that guar- more than 20% last year by
antee them certain returns in mutual funds holding their
the case of a sale or IPO. shares.
Last year, buybacks repre- The employee share-sale
sented 58% of secondary sale trend, which recently included
sales via Nasdaq Private Mar- companies such as Pinterest
ket, versus 44% in 2014. The Inc. and Palantir Technolo-
other deals were tender offers gies Inc., has extended into
in which the buyers acquire 2016, with the IPO market off
common shares, without pro- to its slowest start in seven
tection, directly from employ- years.
ian bondholders that agreed to ALLY FINANCIAL
the deal, said that the govern-
ment would pay cash to settle
New Auto Loans
about $900 million in defaulted
debt, plus interest. It said the to-
Fuel Profit Gain
Ally Financial Inc. said its
tal amount is equivalent to fourth-quarter profit soared
about 150% of the original princi- thanks partly to rising auto-loan
pal, or $1.35 billion. originations and retail deposits.
Argentine Finance Minister Ally lost a chunk of that busi-
Alfonso Prat-Gay told a news ness last year when General Mo-
conference that the deal repre- tors Co. largely squeezed it out
sents about 15% of Argentina’s of its lucrative subsidized-leasing
debt that wasn’t restructured af- business. Ally has since worked
ter the country’s substantial to recoup much of that lost busi-
2001 default. He said the gov- ness. In the fourth quarter, con-
ernment also would get a dis- sumer auto originations edged up
count on the interest payments. to $9.3 billion from $9 billion a
The Italian bondholders had year earlier. Excluding GM, origi-
sought about $2.5 billion from nations jumped 35%. Ally re-
Argentina during arbitration at ported a profit of $263 million, up
the World Bank’s International 49% from $177 million a year ear-
Centre for Settlement of Invest- lier.
ment Disputes. —Lisa Beilfuss,
—Ryan Dube Rachel Louise Ensign
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | C3

GLOBAL FINANCE
Puerto Rico Debt Talks Gain in Congress
Capitol Hill staffers powerful enough to assure Re- highlight a growing acknowl- bankruptcy code to give sions.
publicans that Puerto Rico will edgment among GOP lawmak- Puerto Rico access to chap- Puerto Rico’s financial ad-
discuss plan to pair follow through on overdue fi- ers that Congress may need to ter 9. But meddling with visers project the territory
debt restructuring nancial overhauls but also take a more active role. chapter 9 has met heavy op- will run deficits of $28 billion
structured to respect the is- Senate Majority Leader position from other Republi- over the next five years. They
with greater oversight land’s self-governance, a con- Mitch McConnell (R., Ky.) said cans, including several con- say economic overhauls will
cern of Democrats. he spoke with President Ba- servatives on the House close less than half of that
BY NICK TIMIRAOS The talks also must find a rack Obama and House Judiciary Committee, which gap, requiring debt forbear-
AND KRISTINA PETERSON way to empower Puerto Speaker Paul Ryan (R., Wis.) has jurisdiction over the ance and restructuring for the

PABLO MARTINEZ MONSIVAIS/ASSOCIATED PRESS

Rico—or the oversight at their White House meeting bankruptcy code. balance.
Bipartisan discussions over board—to restructure some of on Tuesday about Puerto Rico The latest discussions The island’s creditors are
how to resolve Puerto Rico’s the island’s $72 billion debt and “grappling with a way would potentially avert that furious that Puerto Rico’s gov-
debt crisis suggest at least a load. Municipalities in U.S. that allows them to restruc- contentious debate by looking ernment is demanding hair-
slim legislative pathway has states can seek relief through ture.” Mr. McConnell also said at how to set up a separate re- cuts without providing a de-
opened for the Obama admin- chapter 9 of the bankruptcy Senate Republicans wouldn’t structuring mechanism exclu- tailed accounting of its
istration, which is seeking code, but the code doesn’t ap- approve any plan that requires sive to U.S. territories, using finances, which include a se-
congressional action before ply to territories. Congress to spend money. constitutional authority ries of complex intergovern-
potential defaults accelerate The goals of any legisla- Mr. Obama told congressio- granted to Congress to man- ment transfers.
this summer. tion are to give Puerto Rico a nal Democrats that a legisla- age federal territories. The Puerto Rico’s government
Republican staffers have one-stop shop for negotiating tive solution for the island’s talks are playing out in the faces chronic budgeting woes.
discussed in recent weeks with creditors that will be debt crisis is a top priority House Committee on Natural It hasn’t balanced its budget
with Treasury Department of- more orderly than piecemeal this year. “The most urgent Puerto Rico Gov. Alejandro Resources, which has jurisdic- since 2000. Generous federal
ficials how to pair a debt-re- litigation that creditors al- tool that we need right now— García Padilla tion over territories and is tax benefits encouraged bond
structuring authority, the top ready have filed while ending a comprehensive restructuring taking the lead shepherding investors to finance those def-
priority of Democrats, with a the island’s chronic deficits. authority—costs taxpayers Further tax increases and the bill in the House. icits.
strong oversight board, the Puerto Rico defaulted in Jan- nothing,” Mr. Obama said at public-sector cutbacks could The crisis is reaching a tip- While bankruptcy often is
main goal of the GOP. uary on $37 million in inter- the lawmakers’ annual retreat drive more residents, who ping point because Puerto viewed as an alternative to
Numerous political land est on bonds it said it in Baltimore last week. are U.S. citizens, to the main- Rico is unable to borrow in bailouts, critics have charac-
mines still loom, and the dis- couldn’t pay. Puerto Rico has been in re- land. the capital markets. To pay terized retroactive legal
cussions haven’t produced a While some conservatives cession for a decade and in Many Democrats—and at bondholders, the government changes that allow for write-
bill yet. One question is will balk at proposals granting that time its debt load has least two Republicans so has been delaying tax refunds downs as a “bailout,” even
whether both sides can agree the territory any debt-relief grown nearly 64% while its far—have endorsed separate and payments to vendors though they wouldn’t cost the
on an oversight structure authority, the discussions population has fallen 9%. bills that would amend the while borrowing from pen- U.S. government any money.

Hong Kong Rebukes Goldman Unit Over Advice to Lender

BY JULIE STEINBERG
HONG KONG—Hong Kong’s
securities regulator on Tues-
day publicly censured an
Asian unit of Goldman Sachs
Group Inc. for misconduct
while serving as a financial
adviser to Hong Kong lender
Wing Hang Bank Ltd. during
its $5 billion buyout by Sing-
apore’s Oversea-Chinese
Banking Corp.
BRENT LEWIN/BLOOMBERG NEWS
January 2014. of the trades, the SFC said. banking team about proper
The censure is tantamount Goldman also issued re- policies and also has en-
to a public rebuke of the com- search materials covering hanced compliance proce-
pany. No fines or penalties Wing Hang Bank while acting dures, the SFC said.
were levied on Goldman. as a financial adviser and “We take compliance with
Wing Hang Bank in Novem- without receiving permission our legal and regulatory obli-
ber 2013 verbally engaged from the SFC. The materials gations extremely seriously,” a
Goldman as a financial adviser didn’t comply with certain Goldman spokesman said.
to help with its potential sale, regulations under the take- “Upon becoming aware of the
the SFC said. In that position, over code, the SFC said. issue we immediately re-
Goldman was supposed to dis- The SFC noted that Gold- ported the matter to the SFC
close its dealings in “relevant man itself reported the and undertook necessary re-
securities” of Wing Hang Bank breaches. medial measures. We have

The Securities and Futures
Commission said Goldman’s
“conduct fell far short of the
standards expected” of a fi-
nancial adviser under the
body’s codes governing take-
overs and mergers. The activi-
ties under scrutiny occurred
Wing Hang Bank in 2013 engaged Goldman as a financial adviser. between November 2013 and
during the offer period, but it The misconduct stemmed conducted our own thorough
failed to do so for a certain from the failure of Goldman’s internal review of this issue
period, the SFC said. investment-banking team to and have implemented en-
Goldman executed 111 inform its compliance division hancements to our internal
trades in such securities be- of the start of an offer period controls.”
tween Nov. 8, 2013, and Jan. for Wing Hang Bank in Sep- A spokesman for the SFC
6, 2014, and was supposed to tember 2013, the SFC said. declined to comment beyond
have received permission Goldman has since issued re- the news release announcing
from the SFC to carry out 26 minders to the investment- the censure.

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C4 | Wednesday, February 3, 2016
Twitter Takeover Defenses May Fail
BY RONALD BARUSCH
Twitter Inc. probably
needs to find a deal within
the next couple of years, at
least if it can’t get its share
price up another way. So it
isn’t surprising that on Mon-
day the rumors started flying
again that either a takeover
or a substantial investment in
the company could be in the
offing. In the absence of a
deal of its choosing, Twitter
could be-
DEALPOLITIK come vul-
nerable to a
hostile take-
over or an unwanted ap-
proach from an activist.
That conclusion may be
counterintuitive based on a
classic analysis of Twitter’s
takeover defenses. It has
some state-of-the-art protec-
tions. But those defenses
aren’t likely to give it full pro-
tection as time goes on. With
the popular social network’s
stock trading at a fraction of
its post-IPO high, as well as
the fact that it has a single
class of common stock, the
MARKET
Continued from page C1
France, the U.K., Belgium, Den-
mark and Sweden all fell.
Yields have fallen in many de-
veloped nations since the start
of the year as a big drop in
global stocks and oil pushed in-
vestors to focus on preserving
capital. The slide in yields picked
up more momentum after the
Bank of Japan surprised the
global markets Friday by lower-
ing some short-term interest
rates below zero, joining the
ranks of central banks in the eu-
rozone, Switzerland and Den-
mark in adopting negative rates.
“We have absence of growth,
absence of inflation and contin-
ued monetary stimulus,” said
Nick Gartside, international chief
investment officer of global fixed
income at J.P. Morgan Asset
Management, which had $1.7
trillion in assets under manage-
ment at the end of December.
“The bond market signals that
the era of low growth and low
inflation is here to stay.”
Tuesday’s action was the lat-
est sign that financial markets
are struggling to make sense of a
constellation of unusual and of-
ten contrary signals on the most
basic questions, such as whether
the U.S. economy is headed for
recession and whether the Fed-
eral Reserve made a mistake in
December when it raised short-
term interest rates for the first
time since 2006.
The turmoil this year has
prompted many investors to dive
deeper into market entrails,
searching for answers in arcane
indicators and the correlations
in seemingly loosely related
markets such as oil, which has
fallen 11% in two days to settle
at $29.88 a barrel, and large-cap
U.S. stocks. Yet few have come
away feeling they have a ham-
merlock on what is happening.
On Tuesday, some well-known
fear indicators clashed. Japan’s
yen rallied, a classic haven sig-
nal, but the Swiss franc, another
mainstay of investors seeking
DOLLAR
Continued from page C1
omy at risk. Recognizing this,
the Fed and its chairwoman,
Janet Yellen, may end up not
just pushing back rate in-
creases planned for this year,
but tabling them for 2016 alto-
gether. Already, futures mar-
kets, which at the beginning of
the year put even odds on a
rate increase at the Fed’s
March meeting, show inves-
tors now expect the central
bank to take a pass.
Among the several related
forces behind the dollar’s rise:
The U.S. economy has per-
formed better than many
other economies, making it a
seemingly safer bet for global
investors. The Fed has moved
to push rates higher, while its
major counterparts are adding
to economic stimulus. Oil and
other raw-materials prices
also have dropped sharply,
putting commodity producers
at risk and further straining
global growth.
But the dollar’s rise is now
intensifying many of the
strains that have helped pro-
pel it higher.
company needs to think about
how it would fend off a hos-
tile bid or at least activists
seeking influence and board
seats. Although its best pro-
tection probably would be to
make business improvements
to get its share price up, if it
relies exclusively on that, it
could find itself in a mess
similar to that of Yahoo Inc.
(Twitter’s stock fell 10% Tues-
day—more than giving back
Monday’s gain—after an ana-
lyst downgrade and harsh
commentary on the com-
pany’s future.)
With its staggered board—
Twitter directors serve three-
year terms so only about a
third are up for election each
year—and an ability to adopt
a so-called poison-pill defense
plan, the company is well-po-
sitioned to “just say no” to
any hostile acquisition pro-
posal. For now.
A poison pill is a mecha-
nism that prevents the acqui-
sition of a substantial portion
of a company’s stock without
board approval. The only way
around it is to replace direc-
refuge, rose just 0.1% against the
dollar.
“People don’t know what to
do,” said David Kotok, chief in-
vestment officer at Cumberland
Advisors in Sarasota, Fla. “Those
that are scared sell stuff and you
have a self-fulfilling downward
spiral that has an emotional
component, and it lasts until the
sellers are exhausted.”
Riskier investments whose
gains typically exceeded the
market average during the past
seven-year bull market were hit
hard. The Russell 2000 index of
small-cap stocks sank 2.3%. The
Nasdaq Biotechnology Index lost
3% and has lost nearly one-
fourth of its value so far this
year.
The KBW Nasdaq Bank Index
dropped more than 3%, taking
the gauge of large commercial
lenders down 16% for the year.
Declines have foiled investors
who gambled that the Fed’s deci-
sion to begin raising interest
rates would bolster the fortunes
of financial stocks by allowing
them to make more money from
their lending businesses.
The decline in financial
shares raises fears that the U.S.
could be headed for recession,
but many investors said they be-
lieve employment growth her-
alds a continued U.S. expansion.
—Saumya Vaishampayan
and Aaron Kuriloff
contributed to this article.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auctions.
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
Applications $197,328,792,900
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Coupon equivalent
Bids at clearing yield accepted
Cusip number
The bills, dated Feb. 4, 2016, mature on March 3, 2016.
52-WEEK BILLS
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Coupon equivalent
Bids at clearing yield accepted
Cusip number
The bills, dated Feb. 4, 2016, mature on Feb. 2, 2017.
One channel for this is the
substantial amount of dollar
debt that has been extended to
nonbank borrowers outside of
the U.S. Many Turkish compa-
nies, for example, borrowed
heavily in dollars in recent
years, even though they had
little in the way of dollar reve-
nues. The 38% rise in the dol-
lar versus the lira over the
past 18 months has made
those loans hard to service
and repay.
Such debt strains darken
economic outlooks and inten-
sify the need for dollars. But
that serves to only send the
dollar higher.
Dollar-indebted commodity
producers are getting hit by a
double punch. The oil, iron ore
and soybeans that Brazil ex-
ports are quoted globally in
dollars. So when a rising dol-
lar causes prices for those to
fall, these exporters earn less.
Coupled with the deterioration
of the Brazilian real, this cre-
ates an intense need for dol-
lars that forces commodity
producers to sell at even
deeper discounts.
Meanwhile, the weakness in
other emerging-market cur-
rencies is making an already
slowing China less competitive
* *** THE WALL STREET JOURNAL.
IN THE MARKETS
shareholders can’t force the having shares with more vot-
Biotech
Firms Snap
amendment of corporate
charters to make elections an-
nual, they can submit propos-
ing rights. A different, but
innovative, system was ad-
opted by Alibaba Group
Drought
als recommending that the
board take such action. Once
Holding Ltd. before it went
public: A majority of its di- In IPOs
DAVID PAUL MORRIS/BLOOMBERG NEWS
shareholders approve them, rectors are selected by the
the pressure to eliminate binding nomination of a BY CORRIE DRIEBUSCH
staggered boards can be huge management partnership,
because, among other rea- with shareholders having a Two biotech companies
sons, the powerful proxy-ad- right to vote that portion of ended the U.S. IPO drought
visory firms will recommend the slate only up or down. If Tuesday.
withholding votes for ob- voted down, the partnership Editas Medicine Inc., which
structionist directors. Only chooses replacements. is in the early stage of develop-
about 50 of the S&P 500 com- Twitter doesn’t have these ing a treatment to correct dis-
panies still have staggered kinds of protections. So, al- ease-causing genes in patients,
The risk of a proposal to boards, one-sixth of the num- though in the short term it raised $94.4 million in its ini-
eliminate Twitter’s staggered ber just 15 years ago. may have good defenses from tial public offering late Tues-
board is substantial. The risk of a resolution a hostile offer, it ultimately day, according to a person fa-
recommending the elimina- has vulnerabilities. It miliar with the offering.
tors. Since Twitter’s staggered tion of Twitter’s staggered wouldn’t be surprising for Separately, immuno-
board forces a hostile bidder board in the next couple of Twitter to be seeking some IPOS oncology drug devel-
to win at least two annual years is substantial. There is a more protection—such as a oper BeiGene Ltd.
meetings, the company should project at Harvard Law School significant purchase of voting raised about $158
be able to resist any such bid; devoted to submitting these shares by a friendly investor million in its IPO, said a person
a delay that long probably kinds of shareholder propos- or even a takeover by a larger familiar with the offering.
makes such a takeover im- als at major companies. company it is comfortable be- The deals are the first U.S.-
practical. Some technology and coming part of. listed IPOs since Dec. 17, when
But a staggered board is other companies addressed —Mr. Barusch is a retired Chinese peer-to-peer lender
unpopular with many institu- these kinds of issues before M&A lawyer who writes Yirendai Ltd. raised $75 mil-
tional and activist investors going public by instituting about deal making for the lion in its stock-market debut,
and has become an endan- dual classes of stock, with Journal’s MoneyBeat blog at according to Dealogic. January
gered species. Although management and founders wsj.com/moneybeat. was the first month without
any IPOs since September 2011.
Tumultuous trading across
global stocks has kept many
companies seeking to raise
money in public offerings at
bay in recent weeks, analysts
and investors said. So far this
year, the S&P 500 has fallen
nearly 7%, and biotech stocks
are down about 23%.
“Even for the highest-quality
companies, there is less de-
mand than there was a few
months ago for IPOs,” said Ziad
Bakri, a health-care analyst at
mutual-fund firm T. Rowe
Price. “It’s very tough.”
TOMOHIRO OHSUMI/BLOOMBERG NEWS
Despite the tough market
environment, some people fa-
miliar with the offerings said
they expected the BeiGene and
Editas deals to be helped by
current investors buying more
shares in the IPOs. Two exist-
ing BeiGene shareholders, Hill-
house BGN Holdings Ltd and
Baker Bros. Advisors, had indi-
Bank of Japan Gov. Haruhiko Kuroda last week surprised investors with a minus-0.1% interest rate. cated an interest in purchasing
50% of the shares in the offer-
BOJ Confounds the Robots ing, according to regulatory fil-
ings.
BeiGene sold 6.6 million
American depositary shares at
BY MEGUMI FUJIKAWA mists’ expectations of gram that incorporates more $24 apiece, according to a per-
additional easing were rela- up-to-date data, including oil son familiar with the matter.
TOKYO—Bank of Japan Gov. tively high. In fact, the central and stock prices, as well as The company planned to raise
Haruhiko Kuroda stunned bank stood pat. more recent statements from about $127 million by selling
economists and investors last The results of the BOJ’s pol- Mr. Kuroda. 5.5 million American depositary
week when he set negative in- icy meeting last week, though, Nomura is revamping its AI shares at $22 to $24 apiece, ac-
terest rates for the first time. count as a miss. Both indexes program by including outlook cording to regulatory filings
He also stumped gave little indication that BOJ reports, which the central bank Editas sold 5.9 million
WORLD a pair of artifi- board members might hold the will release every quarter, as shares at $16 apiece, the per-
RATES cial-intelligence view that additional monetary well as summaries of board son familiar with the matter
programs. easing was necessary, but the members’ opinions released said. The company had planned
Nomura Secu- central bank rocked financial about a week after each policy- to raise more than $100 million
rities Co. and Credit Suisse markets with a surprise intro- board meeting, said Yuhki Ya- by selling 5.9 million shares be-
Securities last year created AI duction of a rate of minus-0.1% mamoto, the brokerage’s se- tween $16 and $18 a share, ac-
programs to analyze BOJ state- on some deposits in its vaults. nior quantitative analyst. cording to regulatory filings.
ments for clues to possible Mr. Kuroda’s fake-out of the Complicating matters, for Editas plans to use the money
$55,000,243,900 shifts in monetary policy. They two programs suggests that humans and algorithms, is Mr. raised in its IPOs for preclinical
$319,483,900 use a process called text min- computers aren’t going to re-
$0
Kuroda’s misdirection, appar- studies and clinical trials,
99.979000 ing on central-bank statements place human analysts soon. ently for maximum market im- among other things, according
(0.270%) and economic assessments Both securities firms use the pact. Ahead of meetings in Oc- to the company’s regulatory fil-
0.275%
25.74% over time to create an index indexes to augment, not re- tober 2014 and last week, Mr. ings.
912796FZ7 measuring BOJ “sentiment.” place, human analysis. Credit Kuroda insisted there was no Editas and BeiGene are set
The AI programs have very Suisse said its AI has only a “de- need for additional easing— to begin trading on the Nasdaq
short track records by which to cent level of indicative value” right up until the central bank under the symbols “EDIT” and
$64,612,737,300
$18,000,097,300
judge them. But Nomura and and only in the nearer term. announced additional easing. “BGNE,” respectively, on
$212,737,300 Credit Suisse recently pointed Credit Suisse economist He had denied repeatedly in re- Wednesday. The Editas deal
$0
99.464111
to readings in October as evi- Takashi Shiono said the firm cent weeks that the BOJ was was led by Morgan Stanley
(0.530%) dence of their objectivity and has decided to tweak its pro- even considering negative rates. and J.P. Morgan, while the
0.541%
50.70%
usefulness. Both indexes indi- gram after the BOJ’s decision But, “If he tells a lie repeat- BeiGene offering was led by
912796JA8 cated a limited risk of BOJ ac- last week. He said it is testing edly, the AI will learn it,” Goldman Sachs, Morgan Stan-
tion then, even though econo- a new version of the AI pro- Credit Suisse’s Mr. Shiono said. ley and Cowen & Co.
globally. That is putting fur-
ther pressure on Chinese pol-
icy makers to further devalue
the yuan.
Dollar Discord
The rising dollar is creating negative-feedback loops among assets
and economies around the world.
cit, the pace of U.S. gross do-
mestic product would have
been 0.5 percentage points
higher in the fourth quarter.
Worry that this might hap- While the Fed’s mandate re-
pen is adding to the pressure mains squarely focused on the
on commodity prices, since a U.S., those are hard things for
depreciated yuan would make the central bank to ignore, and
it harder for Chinese compa- show how globalization has
nies to buy raw materials. And steadily increased the U.S.
it also feeds back into weak- Chinese capital economy’s exposure to the
takes flight
ness in other currencies as the rest of the world.
foreign-exchange market dis- Moreover, with the Bank of
counts the possibility of a de- DOLLAR IS UP Japan last week setting nega-
valued yuan. tive rates on some reserves
Yuan worries are contribut- China is pressured and the European Central
ing to the massive capital out- Dollar debt to devalue Bank signaling it is ready to
is squeezed its currency
flows China is experiencing, as provide further stimulus next
Chinese citizens move their month, the divergence be-
money out of the country to tween the Fed’s and other cen-
protect against future devalua- tral banks’ policy stances has
tions. Chinese policy makers widened. This threatens to
have been liquidating U.S. give fresh impetus to the dol-
Treasurys to hold the yuan lar’s rise, and bolsters the case
steady amid the outflows, but for the Fed to send a strong
as the decline in Treasury Other emerging signal that it is putting its
Oil/commodities
yields this year shows, there go down markets are hurt rate-raising plans on hold.
have been plenty of ready buy- The risk is that won’t be
ers for this debt. enough to stem the dollar’s
In effect, the availability of THE WALL STREET JOURNAL. rise, and short circuit the
these Treasurys may have feedback loops. It certainly
drained liquidity from other are taking place away from the pushing the Fed’s goal of wouldn’t be a panacea for the
dollar-denominated debt, mak- U.S. But there is no escaping reaching its 2% inflation target world’s problems. But given
ing an already bad situation their adverse impact. The ever further into the future. It the alternative of watching a
even worse. combination of overseas weak- is hitting the economy in dangerous situation get even
For the most part, the prob- ness and dollar strength has other ways, too: If it wasn’t more perilous, the Fed may
lems driving the dollar higher driven import prices lower, for the expanding trade defi- have no choice.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | C5

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
16153.54 t 295.64, or 1.80% Trailing P/E ratio * 16.68 16.95 1903.03 t 36.35, or 1.87% Trailing P/E ratio * 20.93 19.79 4516.95 t 103.42, or 2.24% Trailing P/E ratio * 21.15 23.75
High, low, open and close for each P/E estimate * 15.07 15.83 High, low, open and close for each P/E estimate * 15.89 16.98 High, low, open and close for each P/E estimate * 17.10 17.85
trading day of the past three months. Dividend yield 2.76 2.47 trading day of the past three months. Dividend yield 2.32 2.00 trading day of the past three months. Dividend yield 1.27 1.27
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15

Current divisor 0.14602128057775

18000 2100 5170

17500 2050 5020

17000 2000 4870

Session high
65-day moving average
DOWN UP 16500 1950 4720
t

Session open Close

65-day moving average
65-day moving average Close Open
t

16000 1900 4570

Session low

15500 1850 4420

Bars measure the point change from session's open

15000 1800 4270
Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan.

Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week Range % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 1,068,087,654 6,416,002
Industrial Average 16420.21 16108.44 16153.54 -295.64 -1.80 18312.39 15666.44 -8.6 -7.3 4.9 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 101,651,311 1,422,171
Transportation Avg 6947.57 6740.72 6764.16 -204.67 -2.94 9178.48 6625.53 -24.0 -9.9 4.9 Most-active issues in late trading Decl. volume* 961,420,275 4,916,529
Utility Average 619.08 610.81 618.63 2.20 0.36 641.40 541.97 -3.6 7.1 9.2 Volume After Hours Issues traded 3,211 373
Company Symbol (000) Last Net chg % chg High Low Advances 642 125
Total Stock Market 19812.20 19427.75 19486.12 -389.69 -1.96 22287.78 19071.84 -8.8 -7.7 7.3
SPDR S&P N Amer Nat Rscs NANR 26,996.4 22.87 … unch. 22.87 22.87 Declines 2,508 238
Barron's 400 474.69 466.16 467.83 -11.37 -2.37 586.75 460.46 -13.5 -9.4 6.0
SPDR S&P 500 SPY 15,304.5 190.02 -0.14 -0.07 207.75 183.79 Unchanged 61 10
Nasdaq Stock Market Mkt Vectors Gold Miners GDX 15,193.7 14.37 0.07 0.49 14.65 14.29 New highs 69 10
Nasdaq Composite 4589.90 4503.12 4516.95 -103.42 -2.24 5218.86 4468.17 -4.5 -9.8 12.4 iShares MSCI Emg Markets EEM 4,136.2 29.29 -0.01 -0.03 30.35 29.28 New lows 125 10
4265.04 4180.57 Closing tick 417 22
Nasdaq 100 4193.10 -93.46 -2.18 4719.05 4016.32 -0.9 -8.7 14.9 Finl Select Sector SPDR XLF 2,521.0 21.00 -0.03 -0.14 21.08 21.00
Closing Arms† 2.29 1.67
Yahoo! YHOO 2,475.3 28.30 -0.76 -2.62 30.10 28.15
Standard & Poor's Block trades* 5,570 57
Microsoft MSFT 2,355.6 52.84 -0.16 -0.30 54.83 52.80
500 Index 1935.26 1897.29 1903.03 -36.35 -1.87 2130.82 1859.33 -7.2 -6.9 7.9 Nasdaq NYSE Arca
Fiat Chrysler Automobiles FCAU 1,999.2 6.72 … unch. 6.97 6.72
MidCap 400 1307.96 1285.68 1289.11 -27.84 -2.11 1549.44 1254.93 -12.5 -7.8 5.4 Total volume* 2,150,935,692 402,660,575
SmallCap 600 624.69 613.22 615.17 -12.67 -2.02 742.13 601.59 -10.9 -8.4 6.5 Percentage gainers… Adv. volume* 270,648,680 51,534,357
Decl. volume* 1,863,733,714 349,622,331
Other Indexes Boot Barn Holdings BOOT 41.7 6.28 0.75 13.56 6.55 5.51
Issues traded 2,944 1,410
Russell 2000 1030.56 1005.40 1008.84 -23.55 -2.28 1295.80 994.87 -15.7 -11.2 3.5 Wabash National WNC 7.9 11.74 1.04 9.72 11.75 10.70
Advances 597 331
NYSE Composite 9532.99 9386.12 9413.78 -202.91 -2.11 11239.66 9156.84 -13.2 -7.2 1.6 Myriad Genetics MYGN 24.9 41.50 3.07 7.99 41.50 36.90 Declines 2,264 1,067
Value Line 412.84 400.86 402.04 -10.80 -2.62 522.42 392.58 -19.8 -9.8 0.6 Govt Properties Income Tr GOV 151.7 14.39 1.01 7.55 14.39 13.36 Unchanged 83 12
NYSE Arca Biotech 2882.96 2760.44 2775.63 -124.98 -4.31 4431.87 2775.63 -23.7 -27.2 18.2
Edwards Lifesciences EW 86.6 81.60 4.69 6.10 81.60 76.85 New highs 22 9
New lows 154 20
NYSE Arca Pharma 506.75 500.27 502.30 -7.09 -1.39 605.94 500.72 -8.1 -7.2 8.1 ...And losers
Closing tick 191 90
KBW Bank 62.89 60.91 61.20 -2.05 -3.24 80.41 60.10 -12.0 -16.3 3.8 Chipotle Mexican Grill CMG 596.4 435.00 -40.67 -8.55 504.00 433.15 Closing Arms† 1.82 1.81
PHLX§ Gold/Silver 47.13 45.56 46.25 -1.12 -2.36 81.03 38.84 -41.4 2.1 -32.7 Illumina ILMN 37.5 147.01 -7.65 -4.95 158.94 147.00 Block trades* 7,755 1,873
PHLX§ Oil Service 143.62 136.16 136.90 -7.14 -4.95 224.32 128.61 -32.5 -13.2 -18.3 Carrizo Oil Gas CRZO 31.0 24.68 -0.87 -3.41 25.57 24.68 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 609.24 594.13 595.70 -20.91 -3.39 746.08 559.59 -10.7 -10.2 12.3 Boston Scientific BSX 111.9 17.26 -0.58 -3.25 17.92 17.26 †(TRIN) A comparison of the number of advancing and declining
22.42 21.06 2.00 40.74 11.95 20.7 issues with the volume of shares rising and falling. An
CBOE Volatility 21.98 10.01 26.8 19.4 Match Group MTCH 32.0 11.80 -0.39 -3.20 12.19 11.00 Arms of less than 1 indicates buying demand; above 1

Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD Latest Session 52-Week Latest Session 52-Week
Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg

World The Global Dow 2141.74 –42.49 –1.95 –8.3 Westmoreland Resource WMLP 4.13 1.30 45.94 12.74 2.38 -57.3 Carbylan Therapeutics CBYL 0.66 -1.81 -73.28 9.22 0.65 ...
The Global Dow Euro 1850.07 –37.91 –2.01 –8.6 Carver Bancorp CARV 3.58 0.98 37.69 7.60 1.92 -40.3 Pixelworks PXLW 1.41 -0.71 -33.49 7.13 1.35 -73.4
DJ Global Index 284.50 –5.00 –1.73 –7.6 China Customer Relations CCRC 9.68 2.53 35.38 11.99 4.39 ... Plantronics PLT 32.55 -12.21 -27.28 58.73 32.13 -31.0
World DJ Global ex U.S. 193.78 –2.93 –1.49 –7.8 Pacific Biosciences CA PACB 12.67 2.48 24.34 14.00 3.58 52.1 Integrated Device Tech IDTI 18.67 -6.83 -26.78 29.04 14.50 -3.0
Michael Kors Holdings KORS 50.11 9.67 23.91 73.47 34.83 -30.6 Rent-A-Center RCII 9.89 -3.39 -25.53 33.59 9.76 -67.3
Americas DJ Americas 451.27 –9.26 –2.01 –7.4
Brazil Sao Paulo Bovespa 38596.17 –1973.87 –4.87 –11.0 OptimumBank Holdings OPHC 4.37 0.74 20.53 23.10 2.51 -56.8 Yirendai ADR YRD 4.88 -1.27 -20.65 10.39 4.70 ...
Canada S&P/TSX Comp 12442.26 –232.11 –1.83 –4.4
Lo-Jack LOJN 6.42 1.06 19.78 6.42 2.11 200.0 Direxion Brazil Bull 3X BRZU 7.88 -1.82 -18.76 84.76 6.60 -90.0
Vascular Biogenics VBLT 3.35 0.55 19.64 15.58 2.76 -75.8 Axovant Sciences AXON 13.66 -2.99 -17.96 31.17 9.99 ...
Mexico IPC All-Share 43092.49 –538.28 –1.23 0.3
Direxion Natl Gas Bear 3x GASX 52.36 7.74 17.34 158.95 37.50 ... DXN Dly NatGas 3X Bl GASL 2.74 -0.56 -16.97 247.00 1.53 -98.6
Chile Santiago IPSA 2897.93 –59.29 –2.00 –1.6
Westmoreland Coal WLB 6.46 0.90 16.19 30.92 3.44 -76.9 Banco Bradesco Ord ADR BBDO 4.42 -0.88 -16.54 11.54 4.15 -55.8
Europe Stoxx Europe 600 334.59 –7.02 –2.05 –8.5
Yulong Eco-Materials YECO 3.13 0.43 15.93 6.80 2.00 ... ADT Corp. ADT 24.94 -4.63 -15.66 42.88 24.22 -30.7
Euro zone Euro Stoxx 314.59 –6.83 –2.12 –8.9
DXN DLY RSSA BEAR 3X RUSS 42.65 5.49 14.77 84.48 24.08 -43.3 Anixter Intl AXE 41.15 -7.63 -15.64 79.88 40.15 -45.9
Belgium Bel-20 3434.80 –53.73 –1.54 –7.2
VelocityShares 3x DGAZ 16.55 2.08 14.37 29.44 4.45 119.8 Royal Caribbean Cruises RCL 71.70 -12.82 -15.17 103.40 65.91 -4.4
France CAC 40 4283.99 –108.34 –2.47 –7.6 VelocityShares 3x Inv DWTI 335.50 41.40 14.08 484.23 56.32 216.5 Cobalt Intl Energy CIE 3.08 -0.55 -15.15 11.20 2.68 -66.6
Germany DAX 9581.04 –176.84 –1.81 –10.8 Mattel Inc MAT 30.46 3.70 13.83 30.70 19.45 8.5 CombiMatrix CBMX 5.79 -1.01 -14.85 32.40 5.67 -79.6
Israel Tel Aviv 1457.40 –13.16 –0.89 –4.7
Italy FTSE MIB 17922.45 –563.50 –3.05 –16.3
Netherlands AEX 420.65 –9.03 –2.10 –4.8 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 8528.70 –259.80 –2.96 –10.6 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Sweden SX All Share 459.21 –7.30 –1.57 –9.1
Switzerland Swiss Market 8196.99 –114.00 –1.37 –7.0 SPDR S&P 500 SPY 167,131 20.0 190.16 -1.80 213.78 181.02 Lo-Jack LOJN 4,796 6525 6.42 19.78 6.42 2.11
5922.01 –2.28 –5.1 Bank Of America BAC 145,874 50.6 13.23 -5.23 18.48 12.94 PwrShs SP 500 Hi Quality SPHQ 6,279 1872 22.42 -1.19 23.94 18.67
U.K. FTSE 100 –138.09
VelocityShares 3x Lg UWTI 104,911 91.8 1.71 -13.69 43.20 1.41 Amer Campus Communities ACC 14,370 1806 43.17 1.77 44.99 32.12
Asia-Pacific DJ Asia-Pacific TSM 1283.95 –8.64 –0.67 –7.6 VelocityShares 3x Lg Nat UGAZ 76,719 177.1 1.50 -15.73 18.20 1.29 PwrShs S&P SmCp Util PSCU 336 1640 42.73 0.14 50.59 34.80
Australia S&P/ASX 200 4993.30 –50.30 –1.00 –5.7 iPath SP 500 VIX Sht Tm VXX 71,677 -1.3 25.40 6.54 35.22 15.48 PowerShares DB Engy Fund DBE 1,227 1527 9.45 -3.57 18.71 8.67
China Shanghai Composite 2749.57 60.72 2.26 –22.3
iShares MSCI Emg Markets EEM 71,360 6.7 29.30 -3.24 44.19 27.61 First Tr MCapGrAlphaDEX FAD 230 1440 45.76 -1.87 52.73 23.64
Hong Kong Hang Seng 19446.84 –148.66 –0.76 –11.3
Finl Select Sector SPDR XLF 67,467 32.2 21.03 -2.77 25.62 18.52 Guggenheim S&P MC 400 EWEWMC 155 1339 42.92 -2.45 53.61 30.60
India S&P BSE Sensex 24539.00 –285.83 –1.15 –6.0
Sirius XM Holdings SIRI 62,773 122.9 3.57 -4.03 4.20 3.31 First Tr Managed Mun ETF FMB 92 1283 52.82 0.54 54.22 50.76
Japan Nikkei Stock Avg 17750.68 –114.55 –0.64 –6.7
iShares MSCI Japan ETF EWJ 60,255 40.0 11.31 -1.05 13.35 10.64 Plantronics PLT 2,520 1274 32.55 -27.28 58.73 32.13
Singapore Straits Times 2579.23 –23.18 –0.89 –10.5 Facebook Cl A FB 59,258 102.3 114.61 -0.42 117.59 72.00 PwrShs Ex-Tr Tr Dyn Util PUI 821 1221 23.81 0.85 24.44 20.54
South Korea Kospi 1906.60 –18.22 –0.95 –2.8 * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
* Volumes of 100,000 shares or more are rounded to the nearest thousand
Taiwan Weighted 8131.24 –25.72 –0.32 –2.5 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group

Consumer Rates and Returns to Investor Benchmark

Treasury Yields
yield curve Forex Race Currencies
and
Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs.
U.S.-dollar foreign-exchange rates in late New York trading
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Five-year ARM, Rate US$vs, US$vs,
A consumer rate against its Tues YTDchg Tues YTDchg
benchmark over the past year 5.00% 10% Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Bankrate.com avg†: 3.35% WSJ Dollar index Thailand baht .02789 35.850 –0.5
4.00 5
s Americas
Hanscom Federal Credit Union 2.50% Vietnam dong .00004486 22291 0.6
4.00% Hanscom AFB, MA Argentina peso .0708 14.1160 9.1
800-656-4328 3.00 Europe
0 Brazil real .2507 3.9895 0.7
2.63%
t
Arundel Federal Savings Bank Canada dollar .7116 1.4054 1.6 Czech Rep. koruna .04040 24.750 –0.5
3.00 Tuesday 2.00
t

5-year adjustable- Glen Burnie, MD 410-768-7800 –5 Chile peso .001400 714.50 0.8 Denmark krone .1463 6.8341 –0.6
rate mortgage s s Colombia peso .0002946 3394.66 6.9 Euro area euro 1.0920 .9158 –0.5
2.00 Millennium Mortgage Services Corp 2.63% 1.00 –10 Yen Euro
(ARM) Ecuador US dollar 1 1 unch Hungary forint .003500 285.75 –1.6
One year ago
t

Carrollton, TX 972-974-1115
0.00 Mexico peso .0541 18.4799 7.4 Iceland krona .007710 129.70 –0.4
t
5-year Treasury 1.00 Star One Credit Union 2.63% –15
Peru new sol .2863 3.493 2.3 Norway krone .1146 8.7222 –1.4
note yield 1 3 6 1 2 3 5 710 30 2015 ‘16
Sunnyvale, CA 408-742-2801 Uruguay peso .03221 31.0500 3.8 Poland zloty .2477 4.0364 2.9
0.00 month(s) years Venezuela b. fuerte .158595 6.3054 unch Russia ruble .01257 79.560 10.7
F M A M J J A S O N D JF Aurora Financial 2.75%
maturity Asia-Pacific Sweden krona .1169 8.5562 1.3
2015 2016 Vienna, VA 703-652-7210 Switzerland franc .9817 1.0186 1.7
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7037 1.4211 3.6
Turkey lira .3388 2.9519 1.2
China yuan .1519 6.5852 1.4
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0392 25.5080 6.3
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1282 7.7990 0.6
UK pound 1.4409 .6940 2.3
India rupee .01471 67.975 2.7
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000729 13726 –0.8 Middle East/Africa
Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008336 119.97 –0.3 Bahrain dinar 2.6537 .3768 –0.1
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002784 359.16 6.0 Egypt pound .1277 7.8297 unch
Libor, 3-month 0.62 0.62 0.26 l 0.62 0.32
Macau pataca .1247 8.0165 0.2 Israel shekel .2523 3.9639 1.8
Money market, annual yield 0.27 0.24 0.24 l 0.42 -0.23 Treasury, Ryan ALM 1452.343 1.520 1.645 1.957 1.394 0.943 2.930
Malaysia ringgit .2363 4.2326 –1.6 Kuwait dinar 3.2999 .3030 –0.1
Five-year CD, annual yield 1.29 1.34 1.29 l 1.53 -0.05 10-yr Treasury, Ryan ALM 1752.504 1.864 1.996 2.480 1.781 –0.727 3.317 New Zealand dollar .6514 1.5352 4.9 Oman sul rial 2.5953 .3853 0.1
30-year mortgage, fixed† 3.70 3.77 3.68 l 4.22 -0.08 DJ Corporate 343.740 3.356 3.402 3.462 2.641 –1.787 2.531 Pakistan rupee .00953 104.905 unch Qatar rial .2747 3.640 –0.1
15-year mortgage, fixed† 2.96 3.01 2.94 l 3.42 -0.13 Aggregate, Barclays Capital 1855.940 2.350 2.410 2.630 2.000 0.020 2.244 Philippines peso .0209 47.909 2.2 Saudi Arabia riyal .2667 3.7502 –0.1
Jumbo mortgages, $417,000-plus† 4.35 4.40 4.00 l 4.97 0.08 Singapore dollar .7002 1.4282 0.7 South Africa rand .0617 16.2139 4.8
High Yield 100, Merrill Lynch 2331.891 7.867 8.199 8.696 5.016 –7.267 0.384 South Korea won .0008248 1212.48 3.1
Five-year adj mortgage (ARM)† 3.35 3.27 3.14 l 4.00 0.30 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1933.350 2.530 2.560 2.900 2.320 2.004 2.661 Sri Lanka rupee .0069464 143.96 –0.2
New-car loan, 48-month 3.25 3.20 2.71 l 3.33 0.73 Taiwan dollar .02982 33.535 1.9 WSJ Dollar Index 91.38 0.08 0.09 1.34
Muni Master, Merrill 505.520 1.567 1.609 2.099 1.532 2.762 2.985
HELOC, $30,000 5.01 4.98 4.24 l 5.01 0.38
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 666.116 6.903 6.971 7.128 5.679 –0.437 0.184 Sources: Tullett Prebon, WSJ Market Data Group
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Commodities Tuesday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg

DJ Commodity 434.59 -6.87 -1.56 584.70 420.23 -21.98 -4.24

ONLINE
WSJ
Reuters-Jefferies CRB 160.18 -3.31 -2.02 231.77 156.32 -29.57 -9.13
Crude oil, $ per barrel 29.88 -1.74 -5.50 61.43 26.55 -43.68 -19.33
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and
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C6 | Wednesday, February 3, 2016
INTERNATIONAL PROPERTY: SAUDI ARABIA
Real-Estate Companies Push to Expand
CBRE Group, JLL and
others see opening as
kingdom shifts energy
from oil to diversify
BY NICOLAS PARASIE
DUBAI—The world’s biggest
commercial-property firms are
seeking to expand in Saudi
Arabia at a time when the
kingdom’s economy is going
through a rough spell as it
tries to reduce the country’s
historical oil dependence.
Firms like CBRE Group Inc.,
JLL, Cluttons and Colliers In-
ternational are looking to
open offices or build up exist-
ing operations. These moves
come as big firms throughout
the world are expanding to
fight for market share in a
consolidating commercial-real-
estate-services industry.
But the expansions in Saudi
Arabia also show that the
firms see opportunity as the
country turns to real estate as
part of its diversification
strategy. “The oil prices shock
is almost forcing a rebirth and
creating a whole new econ-
omy, which is attracting the
interest of global businesses,”
said Faisal Durrani, head of re-
search of Cluttons, a London-
based property consultant and
estate agent looking to open
an office in Saudi Arabia. “It’s
a silver lining in an otherwise
lackluster economic environ-
ment.”
CBRE Group, the world’s
largest commercial-real-es-
tate-services company by rev-
enue, has received preliminary
approval to obtain a license to
do research and consulting in
the kingdom, according to
Nicholas Maclean, managing
director of the group’s Middle
East business. CBRE also is in
discussions with a prospective
local partner required to start
U.S. Sets
Rules on
Mortgage
Disputes
BY JOE LIGHT
Fannie Mae and Freddie
Mac said Tuesday they have
come to terms with lenders on
how to resolve mortgage dis-
putes, capping an effort that
regulators hope will make
loans cheaper and easier to
get for some risky borrowers.
The announcement marks
the end of a four-year push by
Fannie, Freddie and their reg-
ulator, the Federal Housing Fi-
nance Agency, to ease mort-
gage companies’ fears of being
slapped with penalties for
faulty loans.
Under the new rules an-
nounced Tuesday, lenders will
have the ability to appeal a
mortgage-related penalty to
an independent arbiter, a step
meant to speed up the resolu-
tion of disagreements between
regulators and lenders.
Fannie and Freddie don’t
make mortgages. They buy
them from lenders, wrap the
loans into securities and pro-
vide guarantees to make inves-
tors whole if the loans default.
When Fannie and Freddie
determine that a lender has
made mistakes on a mortgage
or that it doesn’t meet their
requirements, the companies
have sometimes forced lenders
to buy back the loans.
As billions in loans de-
faulted during the financial
crisis, Fannie and Freddie said
many of the mortgages didn’t
meet their requirements. That,
combined with major lawsuits
and federal settlements,
prompted some lenders to pull
back from making some mort-
gages to categories of borrow-
ers eligible for federal backing
but more prone to default.
Some lenders have said that
Fannie’s and Freddie’s changes
have led them to feel more
comfortable lending to riskier
borrowers.
Bill Emerson, CEO of
Quicken Loans Inc., said the
nonbank lender now will make
any loan that Fannie and Fred-
die will accept.
Franklin Codel, head of
home lending for Wells Fargo
& Co., said the change “brings
greater certainty.”
A view of the King Abdullah financial district in Riyadh. Big commercial firms are fighting for market share in a consolidating sector.
brokerage, property-manage-
ment and valuation services,
Mr. Maclean said. CBRE hopes
to be operational in Saudi Ara-
bia by the end of the second
quarter, he said.
JLL, the world’s second-
largest property-services firm,
has an “aggressive expansion
plan” in place that already saw
its workforce in the kingdom
nearly double in the past two
years, said Jamil Ghaznawi,
head of the group’s Saudi of-
fice.
Colliers International,
which has had a presence in
Problems Dog the Progress of Planned City
BY AHMED AL OMRAN
AND NICOLAS PARASIE
KING ABDULLAH ECO-
NOMIC CITY, Saudi Arabia—In
2005, Saudi Arabia’s King Ab-
dullah backed a grandiose plan
to build six new cities from
scratch in the desert kingdom
to provide housing and jobs
for millions of Saudis, attract
foreign investors and help de-
velop an economy that was
less dependent on oil.
Today, a visit to the only
one of those proposed cities to
become functional under-
scores the challenges to eco-
nomic development in Saudi
Arabia that go beyond the
country’s current economic
downturn brought on by the
plummet in the price of oil.
Located 140 kilometers (87
miles) north of Jeddah near a
small fishing village on the
Red Sea coast, King Abdullah
Economic City, better known
as KAEC, welcomes visitors
with a gate carrying a large
portrait of the late king, who
died in 2015. The asphalt on
its new streets is still shiny
with colorful banners over
them carrying slogans about
“vibrant life.”
But around the streets
many empty plots remain cov-
ered in sand. There are only
about 4,000 people living here
now, far short of the planners’
goal of 50,000. Another 4,000
people work in KAEC but com-
mute from Jeddah and other
neighboring cities.
Yellow cranes move con-
tainers from ships in KAEC’s
new King Abdullah Port but it
remains a work in progress.
Officials say they aim to make
it one of the 10 largest ports
in the world with a capacity to
handle 20 million 20-foot
equivalent container units
when completed, but that is
now slated to be in 2025.
KAEC (pronounced “cake”)
has been subject to the same
political and economic forces
that caused plans for two of
the other six cities to be com-
pletely scrapped and three to
be scaled down and delayed,
officials say. Problems have in-
cluded the hurdles facing for-
eign companies trying to set
up in the kingdom and the
lack of support for the cities
in some parts of the govern-
ment.
The global financial crisis
of 2008 also had an impact on
the planned city, discouraging
the kingdom, hopes to open
more offices, possibly in the
western part of Saudi Arabia,
said Imad Damrah, the manag-
ing director of the company’s
Saudi office.
These international firms’
growth plans in Saudi Arabia
coincide with a tumultuous
period for the largest economy
in the Arab world.
Around 80% to 90% of
Saudi Arabia’s revenue stems
from oil. With crude prices
dropping below $30 a barrel,
the Saudi leadership has had
to accelerate economic over-
King Abdullah Economic City, better known as KAEC. So far only one city is functional out of six that were part of a grand project.
would-be investors. “Even if
you had any chance of success,
the financial crisis killed it,”
said Fahad al-Rasheed, chief
executive of Emaar, the Eco-
nomic City, the lead developer
of KAEC.
Today Saudi Arabia faces
even more economic chal-
lenges because collapsing oil
prices have crimped the state’s
main source of income, forcing
the government to tap the do-
mestic bond market and to
burn through billions of its
foreign reserves to plug a wid-
ening budget deficit.
There are only about
4,000 people living
in King Abdullah
Economic City.
Meanwhile, unemployment
is high among the kingdom’s
youth, adding additional social
and budgetary strains on a
government that also is wag-
ing a costly war in Yemen and
is increasingly fearful of a re-
surgent Iran.
In many ways, the slow de-
velopment of KAEC and the
other cities reflects Saudi Ara-
bia’s main economic challenge:
to grow the nonoil economy at
a time when revenues are
shrinking and the country’s
hauls that could gradually
open up the country to more
international and nonoil busi-
nesses. The country is trying
to unburden its bloated public
sector by pushing the private
sector to create more jobs.
Saudi Arabia’s economy is
likely to expand at its slowest
pace in more than a decade as
a result of lower oil receipts.
The International Monetary
Fund recently said the growth
in the world’s largest oil ex-
porter will slow to 1.2% this
year, revising it downward
from 2.2% previously.
leadership is grappling with
crises both at home and
abroad.
For Nicholas Maclean, man-
aging director of property
firm CBRE Middle East, the
concept of developing eco-
nomic zones is an important
pillar of the Saudi govern-
ment’s efforts to create jobs
for its nationals and to diver-
sify the economy. But a major
hurdle remains the lack of
ease by which foreign compa-
nies can set up in the king-
dom.
“The key weakness is that it
can’t be done on a national ba-
sis alone, they have to em-
brace international companies
as well,” Mr. Maclean said.
“The Saudis have to radically
overhaul the way foreign insti-
tutions and businesses can set
up shop there,” he said.
The contrast with Dubai is
telling. Several free zones, in-
cluding a state-of-the-art fi-
nancial center, have lured
many of the world’s largest
companies to establish their
headquarters in the glitzy
emirate. The Jebel Ali Free
Zone is home to one of the
busiest ports in the world.
Saudi Arabia has lacked a
legal framework to regulate
such developments. Even more
serious, not everyone in the
government bought into the
idea despite the king’s sup-
THE WALL STREET JOURNAL.
its lavish energy subsidies to
offset the fall in oil revenue.
There also are plans to intro-
duce taxes and ease restric-
tions on foreign ownership.
“Some of the reforms that
are being proposed will bring
a level of modernization to
Saudi Arabia, especially the
real-estate sector,” said Mr.
Maclean of CBRE. “We feel the
opportunity is bigger than
ever now,” he said.
Saudi authorities recently
approved a tax on undevel-
oped urban land. Many land-
owners in Saudi Arabia made
profits by simply keeping the
land and letting it increase in
value rather than developing
it, a trend that could come to
an end with the new tax.
The purpose of the tax law
was “to increase the land in
the market,” said JLL’s Mr.
Ghaznawi. He expects more
land will be sold, which will
boost business for real-estate
firms.
WASEEM OBAIDI/BLOOMBERG NEWS
Despite the bullish outlook,
international companies still
have to cope with the difficul-
ties in doing business in Saudi
Arabia. Travel visas, for exam-
ple, remain hard to obtain and
prevent international firms
from bringing in specialists
from across the globe on short
notice. The domestic talent
pool also remains relatively
In Riyadh, revenue per shallow, executives said.
available hotel room was fall- In addition, financing for
ing in the fourth quarter of real-estate projects may in-
2015 while office rents were creasingly become harder to
“bottoming out,” according to secure. Analysts have warned
a JLL report released in Janu- the economic slowdown will
ary. Rental growth was slow- force banks to take more pro-
ing in the retail and residen- visions while a slump in gov-
tial sectors, the report said. ernment deposits could weigh
Despite the worsening out- on lending.
look, property firms are taking “We still don’t know what
heart from the Saudi leader- is the banks’ appetite to fi-
ship’s apparent commitment nance projects,” said Mr. Dam-
to diversify the Gulf country’s rah of Colliers. “Do the banks
economy. Saudi Arabia at the have provisions, do they have
end of 2015 said it would cut a strategy in place to fund real
spending and reduce some of estate?” he said.
AHMED AL OMRAN/THE WALL STREET JOURNAL(2)
Many empty plots remain covered in sand in KAEC.
port. the government as he pushed
The Saudi Ministry of Fi- for the ambitious economic
nance, which was expected to cities vision, was succeeded in
provide funding for infrastruc- May 2012 by Abdul-Latif al-
ture in the new cities, wasn’t Othman, a soft-spoken former
as enthusiastic about the proj- Saudi Aramco executive who
ect. attempted to repair the au-
As the budgets for each thority’s relations with other
government department were government departments.
expanding thanks to increas- Mr. Othman conceded that
ing oil revenue, the budget al- the economic cities, launched
located by the finance minis- 10 years earlier, “did not take
try for the Saudi Arabian off as anticipated.”
General Investment Authority, “Today we are seeing vary-
which envisioned the eco- ing degrees of success. The
nomic cities project, during government sees the impor-
the tenure of former head Amr tance of creating these eco-
al-Dabbagh was “flat as a pan- nomic zones that offer com-
cake,” said a former official. petitive regulations,” Mr.
Mr. Dabbagh, who clashed Othman told The Wall Street
with many other ministers in Journal in a November.
THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | C7

INTERNATIONAL PROPERTY

Saudi Law
Will Target
Unused Land
BY AHMED AL OMRAN
AND MARGHERITA STANCATI
RIYADH—When King Sal-
man ascended to the throne of
Saudi Arabia last year, he said
solving the country’s housing
shortage was a priority.
“We are determined, God
willing, to develop practical
and urgent solutions to ensure
the provision of adequate
housing for citizens,” he said
in his first address to the na-
tion.
Now, King Salman is mak-
ing good on his promise by
In an era of cheap oil, the
Saudi government also hopes
that housing development will
stimulate the economy. Saudi
Housing Minister Majed al-
Hugial said the kingdom is ex-
pecting hundreds of billions in
investments over the next five
years to satisfy the demand
for some 1.5 million residential
units.
“There is opportunity, in-
ternally, that could offset in-
come from oil,” said Mr.
Hugial at an event organized
by the country’s investment
promotion agency in Riyadh

WASEEM OBAIDI/BLOOMBERG NEWS

taking aim at owners of unde-
veloped land in urban areas
who have opted to keep it va-
cant.
For years they have been
able to do this without paying
taxes, waiting for land values
to rise or using their vacant
parcels for speculative trading.
The phenomenon has contrib-
uted to one of the biggest do-
mestic problems in the king-
dom: the lack of affordable
housing in its major cities.
The Saudi government
hopes that a new law that
taxes owners of undeveloped
land in urban areas will spur
more residential development.
The proposed 2.5% tax was
first presented in March last
year and approved by the cab-
inet in November. It is ex-
pected to take effect in late
2016.
“Previously land was a
means of storing wealth,” said
Jamil Ghaznawi, head of JLL’s
Saudi Arabian office. “Now
landowners are being penal-
ized for not developing their
land.”
last week.
The ministry he is leading
was established in 2010. It was
allocated 250 billion riyals
($66.7 billion) to build
500,000 accommodation units
around the country, but only a
fraction of them have been
built because there wasn’t suf-
ficient urban land available for
construction.
The housing shortage is es-
pecially acute in cities such as
Riyadh and Jeddah, where
large plots of land sit idle, just
dirt and the occasional sign-
board that marks them as pri-
vate property. As much as 30%
to 40% of land in these cities
is unused, according to esti-
mates by some real-estate bro-
kers.
Only about 35% of the coun-
try’s adult population own
their home, according to a re-
port by consulting firm Strat-
egy&, and it affects young,
first-time buyers in particular.
Ahmad Baaboud hunted for
nearly three years before he
finally found a home in an up-
scale neighborhood in north-
The housing shortage in Saudi Arabia is especially acute in cities like Riyadh, where large plots of land sit idle.
ern Riyadh last summer. The
3,767-square-foot house that
Mr. Baaboud bought cost him
2.35 million Saudi riyals
($626,980).
“I saw more than a hundred
houses,” said Mr. Baaboud,
who has a young family.
“Prices are high and the qual-
ity is low.”
There is some evidence the
proposed new tax on vacant
plots—commonly known
as white lands—is working.
Many landowners already
are looking for alternatives,
real-estate industry executives
say.
Nicholas Maclean, who
heads the Middle East division
of real-estate-services com-
pany CBRE, says that right af- ager of Riyadh-based Bussma yadh, where his children live.
ter the white-lands tax was Real Estate Management Co., a “It is affecting my father’s
announced in March the vol- company that works with social life,” Mr. Abdullah said.
ume of requests for feasibility owners who want to sell or “He is too old to drive all the
studies went up significantly. develop their land. way to see people who live up-
The introduction of the tax “We are worried that a town.”
“seems to have had the right flawed application of the land Mr. Abdullah’s father was
effect,” Mr. Maclean said. “We tax could lead to problems and offered one million Saudi ri-
are very busy talking to fami- a negative impact on the econ- yals for his eight-bedroom
lies who own lots of land omy,” Mr. Mobid said. house in the city’s south last
banks about what to do with The white-lands tax alone year. But with that amount of
those land parcels.” won’t solve the housing crisis. money, there is little he can
But some are concerned Population growth and the afford in the city’s more up-
that the tax could worsen the limited access to housing fi- scale north.
housing crisis by creating un- nance—Saudi mortgage law “We are afraid prices would
certainty in the market. A requires a 30% down pay- go lower still if they impose
landowner, for instance, could ment—also contributed to the the white-lands tax,” he said,
choose to develop the land for shortage. making the old house even
purposes other than housing Abdulmohsen Abdullah said less valuable. “We don’t know
just to avoid the tax, said his elderly father is struggling how to manage. Sell or not
Khaled al-Mobid, general man- to find a place in northern Ri- sell?”

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C8 | Wednesday, February 3, 2016 THE WALL STREET JOURNAL.

INTERNATIONAL PROPERTY NEW HIGHS AND LOWS

The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock

TOWER
Market stocks that hit a new 52-week intraday high or low in the latest session.
% CHG-Daily percentage change from the previous trading session.
Tuesday, February 2, 2016
52-Wk % 52-Wk % 52-Wk %
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
XcelEnergy XEL 38.99 1.1 MitsubishiUFJADR MTU 4.64 -3.7
Continued from page C1 NYSE highs - 69 MizuhoFinancialADR MFG 3.13 -0.9
Most of the remaining 57 mil- AgreeRealty ADC 37.46 0.6 NYSE lows - 125 ModineMfg MOD 6.00 -4.8
lion-square-foot project in Airgas ARG 140.29 ... ADTCorp. ADT 24.22 -15.7 Moog B MOG/B 40.58 -5.8
northern Jeddah—which will AllianceCal AKP 14.62 0.3 AerCapHoldings AER 28.52 -7.7 Moog A MOG/A 40.44 -5.9
Ameren AEE 46.50 1.6 Aircastle AYR 15.86 -7.2 MorganStanley MS 24.39 -4.7
include a supersize mall, hous- AmStWtr AWR 46.81 0.9 Alexanders ALX 354.10 -0.6 Mosaic MOS 22.02 -7.6
ing units and an artificial AquaAmerica WTR 31.98 -0.4 AllianceData ADS 192.78 -5.9 NeffClA NEFF 4.30 -8.6
lake—could face delays. AtmosEnergy ATO 69.97 1.9 AmericanAxle AXL 12.07 -6.4 NewMarket NEU 341.37 -7.9
Avista AVA 37.94 0.5 AmEqtyLf AEL 16.18 -5.0 NorfolkSouthern NSC 66.46 -5.1
“It’s a statement of power, BB&TPfd.F BBTpF 25.35 -0.1 AnixterIntl AXE 40.15 -15.6 Novartis ADR NVS 75.59 -1.9
of economic growth, of suc- BlkRkMuniInco Tr BFK 15.17 0.3 Anthem ANTM 125.78 -2.1 OMAssetManagement OMAM 10.33 -6.1
cess,” said Mounib Hammoud, BlkRkMunienFd MEN 12.63 0.2 AristaNetworks ANET 53.52 -2.7 OceaneeringIntl OII 30.18 -3.9
BlRkMuHldgNYQlty MHN 14.84 1.2 AsburyAutomotive ABG 44.13 -3.6 PartyCityHoldco PRTY 8.85 -6.3
chief executive officer of JEC. BlkRkMunivestFdII MVT 16.77 0.8 AtwoodOceanics ATW 5.19 -6.5 PitneyBowes PBI 16.56 -13.9
“We know that phase one will BlRkMuyldNYQlty MYN 13.88 0.5 BancoBilbaoVizADR BBVA 6.05 -4.6 Plantronics PLT 32.13 -27.3
be complete by 2020. The rest BlRkMunyldQltyIII MYI 15.11 -0.1 BancoSantanderADR SAN 3.84 -6.6 PrincipalFinancial PFG 33.09 -7.6
depends on economic growth BlkRkNY MI Tr BNY 16.09 0.6 BankNY Mellon BK 34.06 -3.4 PrudentialADR PUK 34.71 -9.5
CMSEnergy CMS 39.61 0.7 BarclaysADR BCS 9.93 -6.5 PureStorageClA PSTG 12.12 -4.4
and on the market.” ChespkeUtil CPK 64.98 4.5 BitautoHldgsADR BITA 17.00 -4.0 QuintilesTransnat Q 58.20 -3.7
Phase one consists of the ConEd ED 71.22 1.0 BootBarnHoldings BOOT 5.20 -13.7 Qwest7%Nts2056 CTAA 24.87 -0.1
ADRIAN SMITH + GORDON GILL ARCHITECTURE

main skyscraper and part of DreyfStMnBd DSM 8.37 0.2 CBL&AssociatesPfE CBLpE 21.80 -1.5 RayJamFnl RJF 41.52 -5.3
DreyfStrMuni LEO 8.81 0.5 CBL Assoc pfD CBLpD 23.92 -0.7 ResoluteForestProd RFP 5.08 -4.5
the surrounding development. EatonVanceMunInc28 ETX 19.15 0.3 CBRE Group CBG 26.24 -4.5 RestorationHardwr RH 55.62 -5.3
So far, 31 of its 167 usable EatonVanceMuniTr EOT 21.82 ... CGG ADR CGG 0.87 -11.6 RivernorthOppsFund RIV 18.45 -1.8
floors in the main tower have ElPasoElectric EE 42.96 0.5 CIT Grp CIT 27.14 -7.2 RoseRockMidstream RRMS 9.48 -1.7
been completed. EntergyNOLA5%2052 ENJ 25.85 0.9 CVREnergy CVI 32.24 -4.6 RoyalBkScotlandADR RBS 6.83 -5.1
Fabrinet FN 29.24 11.7 CareCapProperties CCP 28.53 -2.7 RuckusWireless RKUS 7.71 -6.5
The collapse in oil prices FedPrmrIntMuni FPT 13.73 0.7 CenturyCommunities CCS 13.82 -3.9 SLGreenRealty SLG 88.24 -3.3
has clouded the economic out- FedPrmrMuni FMN 15.21 0.2 Cenveo CVO 0.46 -2.2 SantanderCnsmrUSA SC 9.41 -4.0
look for Saudi Arabia, forcing GabelliMultimedia GGTpB 26.96 0.9 ChinaLifeInsADR LFC 11.34 -1.8 SchwabC SCHW 23.88 -4.6
GenAmInv pfB GAMpB 27.18 -0.4 CinemarkHoldings CNK 28.33 -3.2 ServiceNow NOW 56.83 -7.6
the government to run a re- GeneralElcCapNt52 GEB 26.05 ... ComericaWt CMA/WS 8.02 0.7 SpiritAeroSystemsA SPR 40.48 -6.3
cord budget deficit last year GeneralElcCapNts GEK 26.08 0.2 CreditSuisseADR CS 16.40 -4.8 StJudeMedical STJ 52.12 -1.0
and to announce a significant ING Grp 7.2Secs INZ 26.68 ... Cubic CUB 39.00 -1.6 StifelFinancial SF 31.02 -5.5
InvescoMuniOpp VMO 13.60 0.7 DarlingIngredients DAR 8.40 -6.2 Strats PG GJR GJR 19.17 -1.1
reduction in public spending InvescoInvNYMuni VTN 15.19 -0.6 DeutscheBank DB 16.90 -5.0 SumitomoMitsADR SMFG 5.91 -2.1
in 2016. These economic head- A rendering of the Jeddah Tower, which is expected to soar more than one kilometer above ground. InvescoValueMuniIT IIM 17.05 0.6 DeVryEducation DV 17.98 -5.5 TCFFinancial TCB 11.11 -4.4
winds could affect the timing LacledeGroup LG 64.76 1.2 Domtar UFS 30.24 -4.0 TCFFinancialWt TCB/WS 1.39 -14.6
of the broader development, has the working name Jeddah Because of its proximity to tion in Saudi Arabia for that to MainStayMuniFd MMD 19.33 0.4 ENSCO ESV 8.71 -6.2 Team TISI 22.30 -5.1
McEwenMining MUX 1.38 3.0 EnableMidstream ENBL 6.50 -5.2 TelecomItaliaADR TI 10.41 -2.3
which is important because Tower, comes with plenty of Islam’s holy cities of Mecca happen.” NewJerseyResources NJR 35.81 1.0 ENS 46.29 -3.4 Tesoro
Enersys TSO 79.35 -8.2
the world’s tallest buildings bragging rights. Once com- and Medina and its large port, Some JEC executives, how- NextEraEnCapI NEEpI 25.24 -0.2 EngilityHoldings EGL 12.31 -7.5 Textron TXT 31.52 -4.3
generally have had a record of plete, it will be the first build- Jeddah has long been a gate- ever, are bullish. NextEraEnergyUn NEEpQ 56.47 1.5 Evertec EVTC 13.32 -3.0 Tidewtr TDW 4.28 -12.3
NextEraEnergy NEE 114.07 0.8 FederatedInvestors FII 23.80 -5.1 Toll Bros TOL 26.53 -1.7
poor financial performance, ing to soar more than a full ki- way for millions of pilgrims “With these difficulties in NiSource NI 21.53 -0.2 Ferrari RACE 34.03 -12.4 TravelportWorldwd TVPT 10.38 -4.4
say real-estate brokers. They lometer (3,281 feet) above and developed into an impor- the economy, many people go NuveenCalAMT NKX 15.69 0.3 FstPotomac FPO 9.42 -1.5 TriNetGroup TNET 13.79 -5.3
can be costly to maintain and ground. To put that in per- tant commercial hub. Since the to real estate. It’s seen as a NuvCA NAC 15.84 0.4 FortressInvtA FIG 3.99 -4.8 TriumphGroup TGI 23.44 -6.6
difficult to lease. spective, that is more than Red Sea city already is devel- safe haven,” said Talal Al NuvInterDurQlty NIQ 13.42 0.5 GCPAppliedTechs GCPw 17.60 -7.8 UBSGroup UBS 14.97 -7.8
NuvValue NUV 10.32 0.5 Gazit-Globe GZT 7.25 -6.0 Univar UNVR 11.66 -7.1
What makes such projects three times the height of New oping north along the coast, Maiman, who sits on the board NuvNY NAN 14.32 ... Gildan GIL 24.32 -3.0 Valhi VHI 1.06 -7.0
worthwhile investments is the York’s Chrysler Building, and the idea behind the project is of both Kingdom Holding and NuveenQualMuniFd NQI 13.90 0.2 GoldmanSachs GS 150.16 -5.0 VMware VMW 43.83 -2.8
value they add to the land sur- would surpass the Burj Khalifa that it will be positioned at JEC. “I believe that by the ONEGas OGS 58.02 1.8 Greatbatch GB 36.42 -3.9 VoyaFinancial VOYA 28.96 -3.1
PPL PPL 36.57 1.3 Greif A GEF 24.41 -3.4 WPGLIMCHERPfdI WPGpI 24.40 ...
rounding them. For example, by some 170 meters. the heart of the new Jeddah. time that the tower is finished PSBusParksDepPfdV PSBpV 25.45 -0.1 Griffon GFF 13.89 -2.3 WPGLIMCHER WPG 8.56 -4.1
completion of the Burj Khal- JEC has a deal to get 8.4 Still, Jeddah has a long way by 2018-2019, we should be re- PartnerRe PRE 141.25 ... HertzGlobal HTZ 8.07 -11.0 Waddell&ReedFin WDR 21.40 -14.4
ifa—currently the world’s tall- billion Saudi riyals ($2.24 bil- to go before it one-ups Dubai. covering.” PIMCO MuniII PML 13.06 -0.5 HHGregg HGG 1.59 3.5 WilliamLyonHomes WLH 9.97 -5.3
PIMCO NY PNF 12.52 0.4 ICICIBankADR IBN 6.01 -6.2 YirendaiADR YRD 4.70 -20.7
est building—in 2010 spurred lion) in financing from Saudi It is the second-largest city of JEC plans to start selling QTSRealtyTrustClA QTS 47.53 0.4 INGGroepADR ING 10.83 -5.5
development in downtown Arabia’s Alinma Investment a kingdom that remains deeply apartments off floor plans in RealtyIncome O 57.42 1.0 IntraLinksHldgs IL 7.52 -3.4 NYSE Arca highs - 9
Dubai, a neighborhood that is Co., a subsidiary of govern- conservative and wary of out- the Jeddah Tower by the mid- SCANA SCG 64.72 0.8 JanusCapitalGroup JNS 11.29 -5.6 DBGermanBundFut BUNL 28.73 0.8
now prime real estate. ment-backed Alinma Bank. side influence. With the excep- dle of this year. Prices haven’t SCETrI5.625%Pfd. SCEpF 26.27 0.4 JumeiIntlADR JMEI 5.76 -4.2 DeutscheXMuniRev RVNU 26.87 0.7
TAL EduADR XRS 49.73 -1.9 KeyCp KEY 10.70 -2.9 DirexionS&PBioBr1X LABS 56.42 4.1
The land used for the Jed- About $1.5 billion of that will tion of citizens of Gulf coun- been set yet, the company TecoEnergy TE 27.45 -0.3 LeeEnterprises LEE 1.30 -3.6 iSh3-7YTreasuryBd IEI 125.42 0.4
dah development belongs to go to the tower and the rest to tries, foreigners aren’t allowed says, but a senior executive VoceraComms VCRA 15.02 1.2 LeggMason LM 27.93 -5.5 iShiBdDec22AMTFree IBMK 26.17 0.2
JEC, which is one-third owned parts of the surrounding de- to buy residential properties. linked to the project said Vornado pfI VNOpI 25.84 -0.3 LionsGateEnt LGF 25.13 -3.1 MrktVecIntrmdt ITM 24.34 0.5
W.R.GraceWi GRAw 65.06 4.9 LithiaMotorsClA LAD 72.39 -2.9 ProShrUl7-10Trs UST 60.42 1.4
by Prince al-Waleed bin Talal’s velopment. International firms, however, prices could range from WestarEnergy WR 45.36 1.6 LloydsBankingADR LYG 3.57 -5.0 SPDRNuveenShTrmMun SHM 24.51 0.3
Kingdom Holding Co. Other The idea for the tower can buy commercial space. roughly $10,000 to $15,000 a WstAstMuniHiInco MHF 7.95 0.6 MRCGlobal MRC 8.96 -7.6 SchwabIntmUSTrsr SCHR 54.98 0.5
owners include Abrar Inter- came from Mr. al-Waleed, who “Can Jeddah ever compete square meter for unfurnished WstAstMuniPtnr MNP 16.17 -0.7 MilacronHoldings MCRN 11.76 -2.8
national Holding Co., Qila’a has previously invested in with Dubai as a global city? residential units. NYSE Arca lows - 20
Jeddah for Real Estate In- banks, hotels and media. The Not in our lifetime,” said Craig That is much more than the Online>> ALPSMedBreak SBIO 21.89 -4.2
ARKIndlInnovation ARKQ 15.81 -1.4
vestment Ltd. and Saudi Bin- tower has a triangular core Plumb, Dubai-based head of average sale prices for apart- During the trading day, 52-week highs and DB3xInvJapanGovBd JGBD 13.81 ...
ladin Group, which is also the that expands into three wings research for Jones Lang La- ments in the city, which is lows are updated hourly at WSJMarkets.com. DB3xShrt25+YTreaBd SBND 3.85 -7.8
project’s main contractor. that will taper as they rise and Salle in the Middle East. “It around $1,210 a square meter, Lists for each market are available free, along DeutschextrkrsCSI300ChinaA-SharesHdgEquity ASHX 19.73 -1.2
The skyscraper alone, which then separate at the top. would need a lot of liberaliza- according to JLL data. with easy access to charts and headlines. Continued on Page C9

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THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | C9

MUTUAL FUNDS
Net YTD Net YTD Net YTD Net YTD Net YTD Net YTD
Explanatory Notes
Net YTD
Data provided by Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret
Top 250 mutual-funds listings for Nasdaq-published share classes with FF2020 13.80 -0.16 -5.0 RisDv A p 45.71 -0.83 -4.3 MFS Funds Class A OverS SF r 8.30 -0.17 -7.7
TotIntBdIdxAdm NA ... NA STIGrade 10.60 +0.01 0.5 ExtndInst 56.63 -1.37-10.9
net assets of at least $500 million each. NAV is net asset value. FF2025 11.73 -0.16 -5.7
Percentage performance figures are total returns, assuming reinvestment FrankTemp/Franklin C ValueA p 30.82 -0.58 -6.0 R2015 13.14 -0.14 -3.9
TotIntlAdmIdx r 22.37 -0.46 -7.7 TgtRe2015 13.82 -0.11 -2.9 GrwthInst 50.68 -0.96 -7.5
of all distributions and after subtracting annual expenses. Figures don’t FF2030 14.15 -0.24 -7.0 Income C t 2.00 -0.03 -4.8 MFS Funds Class I R2020 18.72 -0.24 -4.9
TotStAdml 46.97 -0.93 -7.5 TgtRe2020 26.12 -0.28 -3.8 InPrSeIn 10.44 +0.04 1.7
reflect sales charges (“loads”) or redemption fees. NET CHG is change in FreedomK2020 12.84 -0.15 -5.0 FrankTemp/Temp A ValueI 30.99 -0.58 -6.0 R2025 14.10 -0.21 -5.7
TxMIn r 10.91 -0.22 -7.7 TgtRe2025 14.92 -0.18 -4.5 InstIdx 173.97 -3.31 -6.8
NAV from previous trading day. YTD%RET is year-to-date return. 3-YR FreedomK2025 13.30 -0.18 -5.7 GlBond A p 11.29 -0.18 -2.2 MFS Funds Instl R2030 20.41 -0.34 -6.4
ValAdml 29.65 -0.59 -6.8 TgtRe2030 26.28 -0.37 -5.2 InstPlus 173.98 -3.32 -6.8
%RET is trailing three-year return annualized. FreedomK2030 13.34 -0.22 -6.9 Growth A p 19.72 -0.44-10.0 IntlEq 18.93 -0.38 -7.9 R2035 14.67 -0.27 -7.1
WdsrllAdml 55.02 -1.22 -7.4 TgtRe2035 15.84 -0.25 -5.9 InstTStPlus 42.50 -0.85 -7.5
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. FreedomK2035 13.62 -0.26 -7.7 FrankTemp/Temp Adv Mutual Series R2040 20.87 -0.40 -7.6
WellsIAdml 58.98 -0.17 -0.7 TgtRe2040 26.58 -0.47 -6.6 MidCpInst 29.76 -0.72 -9.4
j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. FreedomK2040 13.65 -0.26 -7.7 GlBondAdv p 11.25 -0.17 -2.1 GlbDiscA 26.68 -0.54 -7.6 SmCapStk 34.84 -0.74 -9.8
WelltnAdml 60.93 -0.69 -4.1 TgtRe2045 16.59 -0.30 -6.7 MidCpIstPl 146.78 -3.53 -9.4
p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock Fidelity Invest GlbDiscz 27.15 -0.55 -7.5 Value 28.72 -0.56 -8.1
WndsrAdml 57.63 -1.63-10.7 TgtRe2050 26.58 -0.48 -6.7 SmCapInst 47.86 -1.11 -9.8
split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. AMgr50% 15.44 -0.14 -3.7 G VANGUARD FDS TgtRetInc 12.29 -0.05 -1.3 STIGradeInst 10.60 +0.01 0.6
x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to
incomplete price, performance or cost data. NE-Not released by Lipper; data
Balanc 20.05 -0.24 -5.5 GMO Trust Class IV O S DivdGro 21.46 -0.34 -4.3 TotIntBdIxInv NA ... NA TotBdInst 10.80 +0.05 1.7
under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. BalancedK 20.05 -0.24 -5.5 IntlEq 18.56 -0.42 -7.6 Oakmark Funds Cl I Schwab Funds GNMA 10.78 +0.02 1.3 WellsI 24.35 -0.07 -0.7 TotBdInstPl 10.80 +0.05 1.7
BluCh 62.27 -1.29 -9.7 EqtyInc 26.88 -0.40 -5.9 S&P Sel 29.42 -0.56 -6.8 HlthCare r 198.51 -2.53 -9.9 Welltn 35.28 -0.40 -4.1 TotIntBdIdxInst NA ... NA
Tuesday, February 2, 2016 Contra 92.01 -1.67 -7.0 H Oakmark 56.86 -1.35 -9.5 IntlVal 28.65 -0.67 -7.8 WndsrII 31.01 -0.69 -7.4 TotIntlInstIdx r 89.44 -1.87 -7.7
Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
ContraK
CpInc r
91.95
8.74
-1.67 -7.0
-0.07 -4.1 Harbor Funds OakmrkInt 18.98 -0.41-11.1 T INSTTRF2025 18.22 -0.22 -4.5 VANGUARD INDEX FDS TotItlInstPlId r 89.46 -1.87 -7.7
CapApInst 54.71 -1.17-10.0 Old Westbury Fds TIAA/CREF Funds LifeCon 17.48 -0.10 -2.0 500 175.68 -3.35 -6.8 TotStInst 46.98 -0.93 -7.5
A EqtyDivd
GlblAlloc
19.65 -0.34 -6.4
17.12 -0.19 -4.5
DivIntl
DivIntlK r
32.38
32.32
-0.59 -7.6
-0.59 -7.6 IntlInst r 54.90 -1.26 -7.6 LrgCpStr 11.68 -0.17 -6.3 EqIdxInst 13.94 -0.28 -7.5 LifeGro
LifeMod
25.69 -0.40 -5.8 ExtndIstPl
22.15 -0.24 -3.9 TotIntl
139.76 -3.38-10.9 VirtusFunds Cl I
13.37 -0.28 -7.7 EmMktI 8.60 -0.14 -4.0
Oppenheimer Y Tweedy Browne Fds
American Century Inv
Ultra
HiYldBd 6.97 -0.03 -1.8
32.24 -0.63 -7.9 StratIncOpptyIns 9.68 ... -0.7
GroCo
GrowCoK
119.79
119.67
-2.69-12.3
-2.68-12.3 I DevMktY 27.38 -0.71 -8.7 GblValue 23.04 -0.31 -5.8 Primcp r
PrmcpCor
90.94 -2.27 -8.8 TotSt
19.10 -0.43 -8.3 VANGUARD INSTL FDS
46.95 -0.93 -7.5
W
IntGrowY 33.57 -0.66 -6.5
American Funds Cl A
D
InvGrBd 11.11 +0.04 1.0 Invesco Funds A
V SelValu r 23.03 -0.74-10.9 BalInst 28.09 -0.29 -3.9 Western Asset
AmcpA p 23.93 -0.48 -7.8 LowP r 44.60
LowPriStkK r 44.57
-0.73 -6.6
-0.72 -6.6
EqIncA 8.95 -0.16 -7.0 P VANGUARD ADMIRAL
STAR 22.10 -0.30 -5.1 DevMktsIndInst 10.92 -0.22 -7.7 CorePlusBdI 11.47 +0.02 0.6
AMutlA p 32.28 -0.54 -4.6 Davis Funds A
BalA p 22.95 -0.24 -3.7 NYVen A 27.47 -0.71-11.1 MagIn 81.93 -1.70 -8.4 J Parnassus Fds 500Adml 175.70 -3.35 -6.8
BondA p 12.73 +0.04 1.3 Dimensional Fds OTC 71.13 -1.87-14.7 ParnEqFd 35.00 -0.61 -5.3 BalAdml 28.09 -0.29 -3.9
John Hancock Class 1
CapIBA p 54.36 -0.72 -2.7 5GlbFxdInc 11.04 +0.02 1.3 Puritn 19.29 -0.21 -5.1 LSBalncd 13.46 -0.17 -5.4
PIMCO Fds Instl
AllAsset NA
CAITAdml 11.98 +0.01 1.3
... NA CapOpAdml r 105.38 -3.02-11.2
BANKRATE.COM® MMA, Savings and CDs
CapWGrA 40.24 -0.88 -7.2 EmgMktVa 18.61 -0.54 -8.8 SrsInvGrdF 11.11 +0.04 0.9 LSGwth 13.75 -0.24 -7.3
StratInc 10.00 -0.02 -1.2 ShortT NA ... NA EMAdmr 24.91 -0.63 -8.9
EupacA p 41.72 -0.92 -8.0 EmMktCorEq 14.63 -0.36 -7.2 John Hancock Instl Average Yields of Major Banks
TotalBond 10.29 +0.02 0.6 TotRt 10.13 +0.01 0.8 EqIncAdml 58.83 -1.00 -5.0 Tuesday, February 2, 2016
FdInvA p 47.06 -1.00 -7.2 IntlCoreEq 10.46 -0.23 -8.2 DispValMCI 17.11 -0.41-10.7
Fidelity Selects PIMCO Funds A ExplrAdml 66.25 -1.65-11.4 Type
GwthA p 37.42 -0.82 -9.4 IntSmCo 15.89 -0.25 -7.7 JPMorgan Inst Class MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
Biotech r 166.35 -5.98-29.5 TotRetA 10.13 +0.01 0.8 ExtndAdml 56.63 -1.38-10.9
HI TrA p 9.07 -0.05 -2.4 IntSmVa 16.98 -0.33 -9.1 MdCpVal 31.84 -0.57 -6.3 National average
Health r 183.07 -3.10-12.1 PIMCO Funds D GNMAAdml 10.78 +0.02 1.3
ICAA p 31.53 -0.61 -5.5 Dimensional Fds JPMorgan R Class
Fidelity Spartan CoreBond 11.72 +0.05 1.6
IncomeFd NA ... NA GrwthAdml 50.68 -0.96 -7.5 Savings 0.09 0.07 0.07 0.09 0.14 0.24 0.37 0.38 0.80
IncoA p 19.52 -0.22 -3.5 US CoreEq1 15.81 -0.34 -7.9 PIMCO Funds Instl
N PerA p 33.00 -0.72 -8.4 US CoreEq2 500IdxInv 66.93 -1.27 -6.8 JPMorgan Select Cls HlthCareAdml r 83.73 -1.07 -9.9 Jumbos 0.19 0.07 0.08 0.10 0.15 0.27 0.42 0.41 0.84
14.98 -0.35 -8.4 IncomeFd NA ... NA HYCorAdml r 5.43 -0.03 -1.5
NEcoA p 32.21 -0.75-10.4 US Small 500IndInst 66.94 -1.27 -6.8 CoreBond 11.71 +0.05 1.7 Weekly change
25.90 -0.58 -8.7 PIMCO Funds P InfProAd 25.63 +0.09 1.7
Fidelity Spartan Adv USLgCpCorPls 24.34 -0.54 -9.2
NwWrldA 46.13 -0.85 -7.7 US SmCpVal 27.47 -0.68 -9.9 IncomeP NA ... NA IntlGrAdml Savings 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00
500IdxAd 66.94 -1.27 -6.8 60.24 -1.61-10.2
SmCpA p 39.02 -0.75-10.6 USLgVa 27.91 -0.74 -9.4 0.01 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00
TxExA p 13.19 +0.01 1.0 Dodge & Cox
ExtMktAd r
IntAd r
44.74
33.12
-1.08-10.9
-0.69 -7.8
L Price Funds
BlChip
ITBondAdml
64.69 -1.52-10.6 ITIGradeAdml
11.48 +0.06 2.2 Jumbos
9.74 +0.04 1.3
WshA p 36.16 -0.63 -5.9 Balanced 88.47 -1.50 -6.3 Lazard Instl CapApp 24.00 -0.27 -4.2 LTGradeAdml 10.06 +0.10 2.0
TotMktAd r 54.24 -1.09 -7.6
AMG Managers Funds
YacktmanFd
Income
20.19 -0.36 -3.3 Intl Stk
13.28 +0.02 -0.1 First Eagle Funds EmgMktEq 12.61 -0.40 -6.2 EmMktS 26.01 -0.72 -8.7 MidCpAdml 134.72 -3.24 -9.4 Consumer Savings Rates
31.81 -1.01-12.8 GlbA 48.92 -0.74 -4.7 Loomis Sayles Fds EqInc 26.33 -0.56 -7.5 MorgAdml 70.87 -1.42 -8.2 Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed-
AQR Funds Stock 147.44 -3.82 -9.4 LSBondI 12.44 -0.09 -3.3 EqIndex 51.21 -0.98 -6.8 MuHYAdml 11.42 +0.02 1.2 erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
FMI Funds
MgdFutStrI NA ... NA DoubleLine Funds LgCap 17.61 -0.34 -5.4 Lord Abbett A Growth 47.74 -1.16-11.0 MuIntAdml 14.42 +0.02 1.4
Artisan Funds TotRetBdI NA ... NA ShtDurIncmA p NA ... NA HelSci 58.73 -1.16-14.7 MuLTAdml of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
FPA Funds 11.88 +0.02 1.4
Intl Inv 26.52 -0.47 -7.5 TotRetBdN NA ... NA FPACres 28.94 -0.46 -6.8 Lord Abbett F HiYield 6.03 -0.03 -1.9 MuLtdAdml 11.08 ... 0.7 not an indication of financial strength or weakness. Information is believed to be reliable, but not
ShtDurIncm NA ... NA InstlCapG ... 0.3 guaranteed.
B F FrankTemp/Frank Adv
Intl G&I
25.49 -0.64-11.8 MuShtAdml 15.83
12.08 -0.27 -7.6 PrmcpAdml r 94.21 -2.34 -8.8
BlackRock Funds A Fidelity Advisor A
IncomeAdv 1.96
FrankTemp/Franklin A
-0.03 -4.8
M IntlStk 14.05 -0.33 -8.0 REITAdml r 108.26 -1.07 -4.2
High yield savings
GlblAlloc p 17.03 -0.18 -4.5 NwInsghtA p 24.22 -0.49 -7.3 CA TF A p 7.56 +0.01 1.2 Metropolitan West MCapGro 65.90 -1.54-10.1 SmCapAdml 47.86 -1.11 -9.8 Bank/rank Yield Bank/rank Yield
BlackRock Funds C Fidelity Advisor I Fed TF A p 12.44 +0.02 1.1 TotRetBd 10.74 +0.03 1.3 MCapVal 23.41 -0.50 -6.1 STBondAdml 10.52 +0.02 1.0 Phone number Minimum (%) Phone number Minimum (%)
GlblAlloc t 15.51 -0.17 -4.6 NwInsghtI 24.67 -0.50 -7.4 Growth A p 67.54 -1.32 -7.9 TotRetBdI 10.74 +0.03 1.3 N Horiz 37.62 -0.91-11.4 STIGradeAdml 10.60 +0.01 0.6 Money market and savings account Six-month CD
BlackRock Funds Inst Fidelity Freedom IncomeA p 1.98 -0.03 -4.8 TRBdPlan 10.12 +0.04 1.4 N Inc 9.45 +0.03 1.2 TotBdAdml 10.80 +0.05 1.7
GE Capital Bank /4 $0 1.05 AloStar Bank of Commerce /5 $1,000 1.01
(866) 576-7053 (877) 751-0294
Ally Bank /4 $0 1.00 EverBank /3 $1,500 1.01
New Highs and Lows | WSJ.com/stocks Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk % (866) 340-4921
Sym Hi/Lo Chg My Savings Direct /4
(877) 280-5143
$1 1.00 California First National Bank /5 $5,000 0.90
Continued From Page C8 52-Wk % 52-Wk % InsysTherapeutics INSY 15.56 -5.8 NephroGenex NRX 0.77 -9.1 Sajan SAJA 2.84 ... (877) 207-3992 (877) 880-1647
52-Wk % Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg InterceptPharm ICPT 94.61 -9.8 NewStarFinancial NEWS 6.34 -6.8 ScientificGames SGMS 5.13 -10.7 One-month CD
Stock Sym Hi/Lo Chg CarrolsRestr TAST 14.40 -0.5 One-year CD
BioCryst BCRX 6.44 -5.7 IonisPharma IONS 35.41 -9.3 NexstarBrdcstgA NXST 41.05 -5.7 SearsHometown SHOS 6.44 -5.7
Lone Star Bank /3 $1,000 0.15 AloStar Bank of Commerce /5 $1,000 1.26
DeutschexFTSEDev DEEF 23.33 -6.6 E-compassAcqn ECAC 10.02 0.7 Bojangles' BOJA 13.39 ... iPath5-YearBear DFVS 26.75 -2.1 Novavax NVAX 4.57 -6.7 ShilohIndustries SHLO 3.57 -7.2
(877) 381-3269 (877) 751-0294
DirexnPharmBull2X PILL 26.90 -0.4 EZchipSemi EZCH 25.42 ... BostonPrvtFnl Wt BPFHW 3.29 -6.0 iPath10-yearBear DTYS 15.12 -6.4 Novocure NVCR 10.15 -8.8 StaarSurgical STAA 6.31 -2.0
VirtualBank /4 $10,000 0.15 My e-BAnC by BAC Florida Bank /4 $1,500 1.26
DirexnS&PBiotechBl LABU 6.41 -10.4 FacebookClA FB 117.59 -0.4 CSICompressco CCLP 4.95 -5.2 IronwoodPharmClA IRWD 8.78 -3.5 OldNtlBcp ONB 11.22 -2.9 Strattec STRT 45.71 0.5
(877) 344-5618 (877) 878-8048
7-10YrTreasBear TYO 14.94 -2.0 FrancescasHldgs FRAN 18.92 -0.4 CarbylanTherapeutc CBYL 0.65 -73.3 iShNasdaqBiotech IBB 258.73 -2.8 Oncothyreon ONTY 1.25 -1.5 TDAmeritrade AMTD 25.92 -5.4
AloStar Bank of Commerce /5 $1,000 0.10 Lone Star Bank /3 $1,000 1.25
20+YrTreaBear TMV 22.43 -5.5 InsteelIndustries IIIN 25.92 3.5 CelldexTher CLDX 7.21 -8.8 Ixia XXIA 9.05 -2.9 PDL Biopharm PDLI 2.71 -12.7 TearLab TEAR 0.95 -5.7
(877) 751-0294 (877) 381-3269
iPathAIGCarbon GRN 6.01 10.4 IntgtElecSvcs IESC 13.10 -0.2 CellectisADR CLLS 20.66 -5.3 Joint JYNT 4.00 -3.8 ParagonShippingClA PRGN 0.07 -9.3 TeslaMotors TSLA 180.23 -7.2
iShFloatingRateBd FLOT 50.27 -0.1 LoJack LOJN 6.42 19.8 Cepheid CPHD 26.22 -3.1 JunoTherapeutics JUNO 24.49 -10.0 ParkCityGroup PCYG 8.27 -1.5 TetraLogicPharm TLOG 0.15 -20.9 Two-month CD Two-year CD
iShIntRtHdgCorpBd LQDH 87.58 -0.7 MGEEnergy MGEE 49.72 1.0 ChanticleerHldgsWt HOTRW 0.06 -6.4 K2MGroupHoldings KTWO 12.96 -5.6 ParnellPharmaceutl PARN 2.33 -3.5 BancpBk TBBK 4.26 -6.0 Lone Star Bank /3 $1,000 0.15 Nationwide Bank /4 $500 1.46
ProSharSh20+Tr TBF 23.04 -1.7 Mattel MAT 30.70 13.8 ChinaAutoSystems CAAS 3.81 0.3 KaryopharmTherap KPTI 5.58 -3.8 pdvWireless PDVW 21.58 -2.8 TheStreet TST 1.15 -3.2 (877) 381-3269 (877) 351-8438
ProUltProShrt20YTr TTT 30.28 -5.7 Nasdaq NDAQ 62.53 0.9 ClovisOncology CLVS 19.50 -5.3 KuraOncology KURA 4.51 -0.4 Pixelworks PXLW 1.35 -33.5 TobiraTherapeutics TBRA 6.39 -4.3 VirtualBank /4 $10,000 0.15 AloStar Bank of Commerce /5 $1,000 1.46
ProShrUltra20 TBT 38.16 -3.7 Oclaro OCLR 3.79 4.0 CondorHospitality CDOR 0.72 -20.9 LPLFinHoldings LPLA 27.41 -6.2 Polycom PLCM 9.50 -5.8 TripAdvisor TRIP 62.10 -6.2 (877) 344-5618 (877) 751-0294
SPDRS&PCapitalMkts KCE 34.68 -4.3 UltraProShrtBiotec ZBIO 41.33 8.7 Crossroads CRDS 0.24 -13.1 LibertyTripAdvA LTRPA 20.97 -6.8 PowerSolutions PSIX 10.96 -6.5 TurtleBeach HEAR 0.91 -22.8 Applied Bank /5 $0 0.05 Synchrony Bank /5 $2,000 1.45
SPDR S&P IntlFnl IPF 16.58 -3.4 ProShUltShNdBtech BIS 46.75 5.8 CryoPort CYRX 1.47 -12.6 LivePerson LPSN 5.50 -2.5 ProNAiTherapeutics DNAI 7.44 -2.3 VBIVaccines VBIV 1.86 -2.0 (877) 622-7973 (877) 412-8426
SPDR S&P Biotch XBI 48.65 -3.6 TeleCommSysA TSYS 5.01 ... DimensionTherap DMTX 6.27 -9.4 MktVectorsBiotech BBH 98.93 -3.0 Proofpoint PFPT 46.59 -3.9 VOXXInternational VOXX 3.91 -8.2
USGasolineFd UGA 22.50 -7.4 USATechnologies USAT 3.60 4.4 Diodes DIOD 18.15 -4.3 MktVectorsPharm PPH 59.35 -1.6 ProQRTherapeutics PRQR 4.92 -9.8 Verastem VSTM 1.13 -4.1 Three-month CD Five-year CD
VangIntrmGvtBd VGIT 65.99 0.4 DipexiumPharma DPRX 7.44 -2.0 Marketo MKTO 17.85 -4.3 ProShrUltNdBTh BIB 41.00 -5.9 VikingTherapeutics VKTX 1.70 -8.4 EverBank /3 $1,500 0.55 Synchrony Bank /5 $25,000 2.25
NYSE MKT highs - 10 WD-40 WDFC 104.99 -1.2 E Trade ETFC 22.51 -4.4 MattressFirmHldg MFRM 35.01 -4.5 UltraPrNASDQBiotec UBIO 24.47 -8.7 VirtusInvtPartners VRTS 84.92 -0.7 (877) 280-5143 (877) 412-8426
BlkRkMunivestFd MVF 10.62 1.0 YorkWater YORW 27.25 1.0 EVINELiveClA EVLV 0.99 -1.9 MedTranscription MTBC 0.86 5.7 QIWIADR QIWI 12.17 -0.2 WaveSystemsClA WAVX 0.07 -32.3 California First National Bank /5 $5,000 0.55 First Internet Bank of Indiana /4 $1,000 2.22
EtnVncCA EVM 12.76 -0.1 Nasdaq lows - 154 EagleBlkShip EGLE 1.08 -14.1 Methanex MEOH 22.84 -6.2 Qualcomm QCOM 42.88 -6.4 WheelerREITPfdClB WHLRP 18.38 -1.5 (877) 880-1647 (877) 412-9564
EtnVncCA MIT CEV 13.91 0.7 ElevenBiotherap EBIO 0.29 -5.3 MirnaTherapeutics MIRN 3.74 -4.7 QuinStreet QNST 3.50 -4.2 WholeFoods WFM 28.21 -3.4 EH National Bank /2 $10,000 0.50 Capital One 360 Bank /5 $0 2.20
ACADIA Phar ACAD 18.90 -8.7
EtnVncMI MIW 14.59 0.2 EmpireResortsRt NYNYR 0.03 -40.8 MokoSocialMediaADR MOKO 0.32 -16.7 RedHillBioADR RDHL 8.31 -9.5 WTBarclaysUSZero AGZD 47.15 ... (877) 343-7302 (866) 416-2164
ADMABiologics ADMA 5.75 -3.7
EtnVncNY ENX 13.27 0.5 EnduranceIntl EIGI 8.63 -9.1 MorgansHotelGroup MHGC 1.46 -13.0 Rent-A-Center RCII 9.76 -25.5 ZillowGroupClC Z 17.67 -6.9
ARRISInternational ARRS 24.27 -4.3
GigOptix GIG 3.42 -2.1 AbeonaTherapeutics ABEO 2.30 -7.2 EricssonADR ERIC 8.51 -2.7 NantKwest NK 8.90 -7.4 Rentech RTK 1.81 -4.2 ZillowGroupClA ZG 19.10 -5.3 High yield jumbos - Minimum is $100,000
InvescoAdvMuniII VKI 12.22 0.2 EssaPharma EPIX 2.78 -6.7 Natera NTRA 7.61 -3.9 SPIEnergyADR SPI 10.47 -4.6 Zogenix ZGNX 8.76 -3.6
Ability ABIL 7.07 -7.1
NeubrgrBrmNY NBO 15.05 1.7 AcastiPharma ACST 1.34 -8.4 EzcorpClA EZPW 2.91 -4.5 NatureSunshine NATR 7.93 -1.5 SabraHlthcrREIT SBRA 17.51 -2.1 ZynerbaPharma ZYNE 6.17 -1.6 Money market and savings account Six-month CD
NuvDivAdv 3 NZF 14.64 0.1 AccelerateDiagnos AXDX 13.25 -6.9 FidelitySouthern LION 14.99 -3.7 ableBanking,adivisionofNortheastBank/4 1.00 AloStar Bank of Commerce /5 1.01
NuvDivAdvMuniIncm NVG 14.85 0.4 AchillionPharm ACHN 6.21 -5.6 FifthStreetAssetA FSAM 1.81 -5.0 (877) 478-0834 (877) 751-0294

NYSE MKT lows - 10 AethlonMedical AEMD 5.99 -2.9 FstFnBksh FFIN

FirstNBCBankHldg FNBC
24.44 -6.0
26.99 -10.5
Exchange-Traded Portfolios | WSJ.com/ETFresearch EH National Bank /2
(877) 343-7302
0.86 EverBank /3
(877) 280-5143
1.01
AgiosPharm AGIO 36.56 -12.2
ArrhythRsch HRT 4.32 -0.5 AkamaiTechnologies AKAM 42.68 -5.2 FlexPharma FLKS 7.38 -2.8 Largest 100 exchange-traded funds, latest session Closing Chg YTD Discover Bank /5 0.85 My e-BAnC by BAC Florida Bank /4 0.90
ChinaPharma CPHI 0.12 -9.0 AldeyraTherapeutic ALDX 4.35 -5.8 FlexCredScoreUSLg LKOR 48.62 -0.8 ETF Symbol Price (%) (%) (877) 412-8329 (877) 878-8048
Tuesday, February 2, 2016
FieldPointPetrolm FPP 0.33 -14.8 AlexionPharm ALXN 137.05 -4.3 Freshpet FRPT 5.70 -1.8 SPDR GldTr GLD 108.09 0.04 6.5
HMG Court HMG 9.78 -1.8 FusionTeleIntl FSNN 1.80 -2.5
Closing Chg YTD
SPDR S&PMdCpTr MDY 234.51 –2.13 –7.7
One-month CD One-year CD
AlexzaPharm ALXA 0.28 -11.5 ETF Symbol Price (%) (%)
Medgenics MDGN 3.38 -3.1 FuweiFilms FFHL 0.53 -1.5 SPDR S&P 500 SPY 190.16 –1.80 –6.7 USAA /5 0.22 My e-BAnC by BAC Florida Bank /4 1.30
Alico ALCO 29.36 -4.0
SL Ind SLI 27.71 -3.6 GalenaBiopharma GALE 0.62 -4.5 AlerianMLPETF AMLP 10.02 –1.86–16.8 SPDR S&P Div SDY 71.61 –1.20 –2.7 (877) 344-2397 (877) 878-8048
AlliquaBioMedical ALQA 1.43 7.5 CnsmrDiscSelSector XLY 73.11 –1.94 –6.5
SunlinkHealth SSY 0.65 -2.4 GileadSciences GILD 81.89 -1.6 TechSelectSector XLK 40.65 –1.79 –5.1 VirtualBank /4 0.15 AloStar Bank of Commerce /5 1.26
ArrayBioPharma ARRY 2.78 ... CnsStapleSelSector XLP 50.28 –1.28 –0.4
SyntheticBiologics SYN 1.17 -14.1 ArrowheadResearch ARWR 3.20 -5.8 GreenBancorp GNBC 6.80 0.4 UtilitiesSelSector XLU 46.05 0.44 6.4 (877) 344-5618 (877) 751-0294
DBGoldDoubleLgETN DGP 20.53 –0.05 13.2 VangdInfoTch VGT 100.11 –2.03 –7.6 AloStar Bank of Commerce /5 0.10 Synchrony Bank /5 1.25
TasmanMetals TAS 0.13 -19.1 AstaFunding ASFI 6.88 -1.9 GuidanceSoftware GUID 4.13 -5.1 DBGoldDoubleShrt DZZ 7.75 –0.13–12.6 VangdHlthCr VHT 119.00 –1.53–10.4 (877) 751-0294 (877) 412-8426
UniqueFabricating UFAB 9.76 -4.3 Astronics ATRO 27.94 -7.2 H&E EquipSvc HEES 10.66 -7.5 DeutscheXMSCIEAFE DBEF 25.26 –2.47 –7.0 VangdSmCapValue VBR 90.41 –2.08 –8.5
aTyrPharma LIFE 4.50 -13.3 HalozymeThera HALO 7.95 -6.9 EnSelectSectorSPDR XLE 55.33 –3.33 –8.3 VIG 74.81 –1.51 –3.8 Two-month CD Two-year CD
Nasdaq highs - 22 AvalancheBiotechno AAVL 4.75 -7.8 Harmonic HLIT 3.10 -5.5 FinSelSectorSPDR XLF 21.03 –2.77–11.7
VangdDivApp
VanguardFTSEDevMk VEA 33.84 –2.25 –7.8 VirtualBank /4 0.15 Nationwide Bank /4 1.51
AlphabetClC GOOG 789.87 1.7 AxionPowerWt AXPWW 0.08 -15.4 HrtgOaksBcp HEOP 7.15 ... GuggenheimSP500EqW RSP 70.85 –2.07 –7.6 VanguardFTSEEmgMk VWO 29.61 –2.98 –9.5 (877) 344-5618 (877) 351-8438
AlphabetClA GOOGL 810.35 1.3 AxsomeTherapeutics AXSM 6.68 -4.9 HorseheadHolding ZINC 0.10 -56.9 HealthCareSelSect XLV 65.61 –1.44 –8.9 VanguardFTSEEurope VGK 45.78 –2.74 –8.2 Applied Bank /5 0.05 CIT Bank /5 1.47
ArtesianRscsClA ARTNA 31.51 0.7 BarcInverseUSTrea TAPR 25.10 -4.9 IndlSvcsofAmerica IDSA 1.10 -8.3 IndSelSectorSPDR XLI 48.87 –2.01 –7.8 VangdAllWldxUS VEU 39.89 –2.42 –8.1 (877) 622-7973
iShIntermCredBd CIU 107.58 0.16 0.3 (877) 344-7758
VangdGrowth VUG 98.48 –1.76 –7.4
iSh1-3YCreditBond CSJ 104.70 0.07 0.1 Citizens Trust Bank /3 0.05 AloStar Bank of Commerce /5 1.46
VangdHiDivYld VYM 63.66 –1.62 –4.6
iSharesTIPSBondETF TIP 111.54 0.31 1.7 BIV 84.59 0.51 1.8
(877) 412-4382 (877) 751-0294
Cash Prices| WSJ.com/commodities Tuesday, February 2, 2016
VngdInter-Term
iSh3-7YTreasuryBd IEI 125.38 0.41 2.3 VangIntrCorpBd VCIT 84.32 0.36 0.3 Three-month CD Five-year CD
iShCoreMSCIEAFEETF IEFA 50.04 –2.36 –8.0 VangdLgCap VV 86.88 –1.82 –7.1
These prices reflect buying and selling of a variety of actual or “physical” iShCoreMSCIEmgMk IEMG 35.91 –3.00 –8.8 EverBank /3 0.55 CIT Bank /5 2.25
VangdMdCap VO 108.76 –2.33 –9.4
iShCoreS&P500ETF IVV 191.09 –1.80 –6.7 (877) 280-5143 (877) 344-7758
commodities in the marketplace—separate from the futures price on an VangdReit VNQ 76.42 –0.91 –4.2
iShCoreS&PMdCp IJH 128.62 –2.12 –7.7 VanguardS&P500 VOO 174.37 –1.81 –6.7 First Internet Bank of Indiana /4 0.45 Synchrony Bank /5 2.25
exchange, which reflects what the commodity might be worth in future iShCoreS&PSmCpETF IJR 100.95 –1.97 –8.3 VangdShrtTrm BSV 80.22 0.22 0.8 (877) 412-9564 (877) 412-8426
months. iShCoreUSAggBd AGG 109.32 0.30 1.2 VangShrtCorpBd VCSH 79.05 0.13 0.1 AloStar Bank of Commerce /5 0.40 First Internet Bank of Indiana /4 2.22
iShSelectDividend DVY 73.97 –0.90 –1.6 VangdSmCap VB 99.93 –2.22 –9.7 (877) 751-0294 (877) 412-9564
Tuesday Tuesday IAU 10.91 ... 6.6
iSharesGold VangdTtlBndMkt BND 81.67 0.34 1.1
Corn gluten meal,Midwest-u,w 458.3 113.66 0.19 –0.3 Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
iShiBoxx$InvGrCpBd LQD VanguardTtlIntlStk VXUS 41.50 –2.28 –8.0
Energy Cottonseed meal-u,w 240 iShiBoxx$HYCpBd HYG 77.87 –0.71 –3.4 VangdTtlStock VTI 96.45 –1.93 –7.5
are based on method of compounding and rate stated for the lowest required opening deposit to
Propane,tet,Mont Belvieu-g 0.3316 Hominy feed,Cent IL-u,w 95 iShMBSETF MBB 109.16 0.22 1.4 VangdTotlWrld VT 53.02 –2.38 –8.0 earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
Butane,normal,Mont Belvieu-g 0.5081 Meat-bonemeal,50% pro Mnpls-u,w 198 iShMSCIACWIETF ACWI 51.64 –2.12 –7.5 VangdValue VTV 75.98 –1.97 –6.8 month, three (3) of which may be checks. Rates are subject to change.
NaturalGas,HenryHub-i 2.030 Oats,No.2 milling,Mnpls-u 2.5525 iShMSCIEAFEMinVol EFAV 63.11 –0.99 –2.7 WisdomTreeEurope HEDJ 50.09 –2.91 –6.9 Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
NaturalGas,TranscoZone3-i 1.980 Rice, 5% Broken White, Thailand-l,w 367.00 iSharesMSCIEAFEETF EFA 54.13 –2.33 –7.8 WisdomTreeJapanHdg DXJ 46.22 –2.35 –7.7 Internet: www.bankrate.com
NaturalGas,TranscoZone6NY-i 1.600 Rice, Long Grain Milled, No. 2 AR-u,w 23.00 iShMSCIEmgMarkets EEM 29.30 –3.24 –9.0
NaturalGas,PanhandleEast-i 1.900 Sorghum,(Milo) No.2 Gulf-u 7.6788 iShMSCIGermanyETF EWG 23.70 –2.51 –9.5
NaturalGas,Opal-i 2.000 SoybeanMeal,Cent IL,rail,ton48%-u 283.60 iShMSCIJapanETF EWJ 11.31 –1.05 –6.7
NaturalGas,MarcellusNE PA-i 1.080 Soybeans,No.1 yllw IL-bp,u 8.8050 iShMSCIUSAMinVol USMV 40.96 –1.04 –2.1
NaturalGas,HaynesvilleN.LA-i 2.000 Wheat,Spring14%-pro Mnpls-u 5.9575 iShNasdaqBiotech IBB 261.01 –2.80–22.9 ADVERTISEMENT
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.250 Wheat,No.2 soft red,St.Louis-bp,u 4.8400 iShNatlAMTFrMuniBd MUB 111.37 0.26 0.6
iShRussell1000Gwth IWF 92.49 –1.80 –7.0
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w

Metals
9.700 Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
4.4525
5.3163 iShRussell1000ETF IWB 105.18 –1.87 –7.2
iShRussell1000Val IWD 90.60 –1.98 –7.4
iShRussell2000Gwth IWO 121.42 –2.42–12.8
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
Gold, per troy oz Food
Beef,carcass equiv. index iShRussell2000ETF IWM 100.28 –2.16–11.0
Engelhard industrial 1130.57 iShRussell2000Val IWN 83.68 –1.99 –9.0
Engelhard fabricated 1215.36 choice 1-3,600-900 lbs.-u 206.17
select 1-3,600-900 lbs.-u 200.89 iShRussell3000ETF IWV 111.28 –1.90 –7.5 BUSINESS FOR SALE BUSINESS OPPORTUNITIES BUSINESS OPPORTUNITIES
Handy & Harman base 1128.50 iShRussellMid-Cap IWR 146.88 –2.16 –8.3
Handy & Harman fabricated 1252.63 Broilers,dressed 'A'-u 1.1175
Broilers, National comp wghtd-u,w 0.8635 iShRussellMCValue IWS 63.56 –1.97 –7.4
LBMA Gold Price AM *1122.00 iSharesS&P100ETF OEF 85.29 –1.77 –6.4
LBMA Gold Price PM *1126.50 Butter,AA Chicago 2.1000
iShS&PMC400Growth IJK 148.77 –2.10 –7.6 70% of Americans Now Own a Pet
  .999 PURE GOLD $650 OZ
Cheddar cheese,bbl,Chicago 145.00
Krugerrand,wholesale-e 1172.08
Cheddar cheese,blk,Chicago 146.00
iShS&P500Growth IVW 108.19 –1.69 –6.6 Former Madison Avenue ad exec has  
 LARGE PRODUCING GOLD MINE
Maple Leaf-e 1183.35 iShS&P500ValueETF IVE 82.34 –2.01 –7.0 written 2 first ever paperback books on
American Eagle-e 1183.35 Milk,Nonfat dry,Chicago lb. 70 iSharesUSPreferred PFF 38.32 –0.26 –1.4
 


EXPANDING PLANT
"Pet Safety". Research indicates U.S. MINE PRICES - FROM THE SOURCE
Mexican peso-e 1366.82 Cocoa,Ivory Coast-w 3067 iShShortTreasuryBd SHV 110.30 0.03 0.1
Coffee,Brazilian,Comp 1.2298 profits from the sales of these books
 
   MIN - 40 OZ LOTS
Austria crown-e 1107.69 iSh1-3YTreasuryBd SHY 84.93 0.13 0.7 is over $15 million dollars - more if inter- ACCREDITED INVESTORS ONLY
Austria phil-e 1183.35 Coffee,Colombian, NY 1.3652 iSh7-10YTreasuryBd IEF 109.47 0.71 3.7 national is added. Please see recently 
      855-339-0749
Silver, troy oz. Eggs,large white,Chicago-u 1.6150 iShChinaLarge-Cap FXI 29.75 –2.55–15.7
Flour,hard winter KC 13.25 completed website for basic info;     buygold400@gmail.com
Engelhard industrial 14.3500 iShRussellMCGrowth IWP 83.41 –2.32 –9.3
Engelhard fabricated 17.2200 Hams,17-20 lbs,Mid-US fob-u n.a. MktVectorsBiotech BBH 99.36 –2.98 –3.0 ultimatepetsafety.info. I’m looking to  !  
Hogs,Iowa-So. Minnesota-u 64.62 sell the rights to these books for $200 K
Handy & Harman base 14.3150
Pork bellies,12-14 lb MidUS-u n.a.
MktVectorsGoldMin GDX 14.30 –2.39 4.2 !    "
  #
Handy & Harman fabricated 17.8940 MktVectorsOilSvcs OIH 22.68 –4.30–14.3 plus 50 cents for each book sold. CAPITAL WANTED
LBMA spot price £9.8870 Pork loins,13-19 lb MidUS-u 1.0720 MktVectorsPharm PPH 59.61 –1.55 –1.6 Call 561-704-1041 $ % &
(U.S.$ equivalent) 14.2600 Steers,Tex.-Okla. Choice-u n.a. MktVectorsRetail RTH 72.69 –1.54 –6.5
181.00
Coins,wholesale $1,000 face-a 12898 Steers,feeder,Okla. City-u,w MktVectorsSemi SMH 48.57 –2.74 –8.8
QQQ 102.15 –2.16 –8.7


  $5,000,000+ Loan sought.
Other metals Fats and Oils
PwrShrs QQQ
PS SP500LoVoltlPrt SPLV 37.47 –1.16 –2.9
Rare Turn-Key Business
 
    Security is first position on over a thousand
LBMA Platinum Price PM *867.0 Corn oil,crude wet/dry mill-u 40.0000 Unique, profitable, well-known acres in the Bozeman, Montana area. Miles
Platinum,Engelhard industrial 866.0 SPDRBarclaysHiYdBd JNK 32.55 –0.82 –4.0
 
  
   

  of trout river and superb elk habitat. Will
Grease,choice white,Chicago-u 0.2400 SPDRShTrmCorporate SCPB 30.33 –0.07 –0.2 tourist attraction in NE Florida for sale  
    

Platinum,Engelhard fabricated 966.0 n.a. due to owner’s declining health. consider short or long term and market rates.
Lard,Chicago-u SchwIntlEqty SCHF 25.42 –2.27 –7.8
Palladium,Engelhard industrial 499.0 0.2967 ' ' Please, only principals need respond.
Soybean oil,crude;Centl IL-u SchwUS BrdMkt SCHB 45.37 –1.90 –7.5 Huge potential, great location,
Palladium,Engelhard fabricated 599.0 0.2600 SCHX 45.09 –1.91 –7.2
Email: tom@latmt.com with your
Aluminum, LME, $ per metric ton *1520.0
Tallow,bleach;Chicago-u SchwUS LrgCap fantastic staff.  contact information or call Tom at
Tallow,edible,Chicago-u n.a. SPDR DJIA Tr DIA 161.41 –1.78 –7.2
Antimony-d 2.6000 Respond to: f.brucen@gmail.com 406 284-6546 for more information.
Copper,Comex spot 2.0520
Lead,NA solder-d 108.916

  

Iron Ore, 62% Fe CFR China-s
Shredded Scrap, US Midwest-s,w
Stainless steel scrap,US-d
43.1
187
1560
Costa Rica 9 Day Tour $1095 BUSINESS OPPORTUNITIES
  

TRAVEL

Steel, HRC USA, FOB Midwest Mill-s 399 Guided Tours Since 1952 +tax,fees





  

Tin,NA solder-d 923.771 Guatemala, Tikal 10 days $1295
Zinc,NA-d 83.999
● Costa Rica 9 days $1095 
        
  
  


Fibers and Textiles Panama & Canal 8 days $1195
  

      

      

  



Burlap,10-oz,40-inch NY yd-n,w 0.5400 Nova Scotia, P�E�I� 10 days $1395      
    
   
Cotton,1 1/16 std lw-mdMphs-u 0.6255   
  !  "  # $  
Cotlook 'A' Index-t *67.95 Canadian Rockies 9 days $1595  
     

!

   


  
 

Hides,hvy native steers piece fob-u 72.000 Grand Canyon 8 days $1395  
  
 #

   %&''   

Wool,64s,staple,Terr del-u,w n.a. Volcanoes, Rainforests, and California Coast 8 days $1395 (%)& *
 
+  
  
   


Grains and Feeds Beaches. All Meals Included! Mount Rushmore 8 days $1295 
! ),-   !
 
#       


 
    
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
n.a.
110
Caravan makes it so easy and New England
affordable to visit Costa Rica.
8 days $1295
 
    

 !"
Corn,No. 2 yellow,Cent IL-bp,u 3.6600
9-Day fully guided vacation “ Brilliant, Affordable Pricing ”

  

Corn gluten feed,Midwest-u,w 104.9 —Arthur Frommer, Travel Editor
package. Call for choice dates. SEPTIC AND WELL SERVICE EXCLUSIVE
—¡Hasta la vista! Free 28-Page Brochure: NORTH CENTRAL FLORIDA GOLF DISTRIBUTORSHIP
  
KEY TO CODES: A=ask; B=bid; BP=country elevator ESTABLISHED 45 YEARS FROM HOME.  


bids to producers; C=corrected; D=Ryan's Notes; RECESSION PROOF BUSINESS
E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Pur. $3k Inv. / Earn $9k/Mo.
 
    
Intelligence; L=livericeindex.com; M=midday; NETS 960K      
N=nominal; n.a.=not quoted or not available; R=SNL RLG Group 352 494-0784 No Selling! 100% Secured.  
Energy; S=The Steel Index; T=Cotlook Limited;
U=USDA; W=weekly, Z=not quoted. *Data as of 2/1 arlene@ronaldlawrencegroup.com contact@putterofthefuture.com  !"##$
Source: WSJ Market Data Group
C10 | Wednesday, February 3, 2016 THE WALL STREET JOURNAL.

BIGGEST 1,000 STOCKS

WSJ.com/stocks

How to Read the Stock Tables Net Net Net Net Net Net
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
securities. Prices are composite quotations that include primary market trades as well as trades ColgatePalmolive CL 65.36 -0.84 ExtraSpaceStorage EXR 91.10 1.61 HyattHotels H 37.44 -0.81 MarathonOil MRO 8.74 -1.00 SpiritRealtyCap SRC 10.46 -0.03 CheckPointSoftware CHKP 78.58 -2.05
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock
Exchange, ISE and BATS. ColumbiaPipeline CPGX 17.89 -0.22 ExxonMobil XOM 74.59 -1.70 t ICICIBankADR IBN 6.02 -0.40 MarathonPetroleum MPC 40.27 -1.50 Sprint S 2.77 -0.30 CincinnatiFin CINF 56.85 -0.95
The list comprises the 1,000 largest companies based on market capitalization. Comerica CMA 33.40 -0.21 FMC FMC 34.53 -1.14 IHSClA IHS 100.67 -2.08 MarineHarvestADR MHG 13.49 -0.10 t StJudeMedical STJ 52.77 -0.53 Cintas CTAS 85.24 -0.87
Underlined quotations are those stocks with large changes in volume compared with the issue’s CSC CSC 31.31 -0.43 FMCTechnologies FTI 23.63 -1.15 IMSHealthHoldings IMS 23.00 -0.06 Markel MKL 840.66-11.03 StanCorpFinancial SFG 114.35 -0.17 CiscoSystems CSCO 22.83 -0.65
average trading volume. ConAgraFoods CAG 40.91 -1.07 FactSetResearchSys FDS 145.22 -4.61 t INGGroepADR ING 10.87 -0.63 Marsh&McLennan MMC 52.35 -0.92 StanleyBlDck SWK 92.96 -1.27 CitrixSystems CTXS 66.27 -4.63
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous ConchoResources CXO 88.92 -3.09 FedRlty FRT 150.41 -1.57 Invesco IVZ 27.79 -1.33 MrtnMarMat MLM 121.19 -2.53 StarwoodHotels HOT 60.52 -2.30 CognizantTechSolns CTSH 60.12 -2.21
closing price was $2 or higher. FDX 130.15 -2.16 ITCHoldings ITC 39.29 -1.04 Comcast A CMCSA 54.59 -1.22
ConocoPhillips COP 36.59 -2.01 FedEx Masco MAS 25.07 -1.20 StarwoodPrTr STWD 18.46 -0.19
Footnotes: listing standards vj-In bankruptcy or s ConEd ED 71.12 0.70 t Ferrari RACE 34.98 -4.95 IDEX IEX 70.49 -0.96 MasterCard MA 85.93 -2.70 StateSt STT 52.97 -1.82 CommScopeHldg COMM 21.46 -1.58
s-New 52-week high. lf-Late filing receivership or being
t-New 52-week low. q-Temporary exemption from reorganized under the ConstBrands A STZ 152.51 -1.85 FiatChryslerAutos FCAU 6.72 -0.29 IllinoisToolWorks ITW 88.60 -1.32 McCormick MKC 87.69 -0.48 StatoilADR STO 12.49 -0.67 CoStarGroup CSGP 169.11 -8.15
dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities ConstBrands B STZ/B 153.95 -1.91 FibriaCelulose ADR FBR 10.07 -0.43 InfosysADR INFY 17.56 -0.21 McCormickVtg MKC/V 87.81 -0.44 Steris STE 69.11 -0.72 CostcoWholesale COST 148.50 -2.75
recent four quarters. t-NYSE bankruptcy assumed by such companies. ContinentalRscs CLR 18.92 -1.14 FidNtlFnl FNF 32.06 -0.44 Ingersoll-Rand IR 48.80 -2.11 McDonalds MCD 123.95 -0.66 STMicroelectronics STM 5.91 -0.45 Ctrip.comIntlADR CTRP 40.36 -1.61
FD-First day of trading. v-Trading halted on primary Cooper COO 131.99 -0.06 FNFVGroup FNFV 9.30 -0.25 Ingredion INGR 99.96 -0.86 McGrawHillFin MHFI 81.68 -2.46 Stryker SYK 99.03 -0.14 DISHNetworkClA DISH 46.76 -1.12
h-Does not meet continued market. Corning GLW 18.09 -0.48 FidelityNtlInfo FIS 59.52 -1.15 ICE ICE 264.49 -2.45 McKesson MCK 155.00 -4.27 t SumitomoMitsADR SMFG 5.95 -0.13 Dentsply XRAY 59.28 -0.75
CotyClA COTY 24.71 0.40 58.comADR WUBA 54.48 -1.70 InterContinentlADR IHG 33.38 -0.68 MeadJohnNutr MJN 68.97 -2.96 SunLifeFinancial SLF 27.41 -0.94 Dexcom DXCM 70.64 -1.39
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day. Credicorp BAP 97.05 -4.18 FirstRepublicBank FRC 65.84 -2.00 IBM IBM 122.94 -1.89 Mednax MD 68.07 -1.47 SuncorEnergy SU 22.22 -0.62 DiamondbackEnergy FANG 71.25 -1.35
t CreditSuisseADR CS 16.51 -0.83 FirstEnergy FE 32.97 -0.08 IntFlavor IFF 117.22 -1.24 Medtronic MDT 76.51 -0.34 SunocoLogistics SXL 22.24 -0.20 DiscoveryCommsA DISCA 26.40 -1.24
Tuesday, February 2, 2016 Net Net CrescentPntEnrg CPG 9.89 -0.64 FleetCorTechs FLT 117.75 -4.01 InternationalPaper IP 33.86 -0.23 Merck MRK 50.41 -0.34 SunTrustBanks STI 34.37 -1.74 DiscoveryCommsC DISCK 26.06 -1.33
Net Stock Sym Close Chg Stock Sym Close Chg CrestwoodEquity CEQP 12.66 -0.25 FlwrsFoods FLO 20.34 -0.23 Interpublic IPG 21.81 -0.66 MetLife MET 42.76 -1.52 SynchronyFinancial SYF 27.01 -1.46 DollarTree DLTR 81.69 -0.29
Stock Sym Close Chg
ApolloGlobalMgmtA APO 12.94 -0.64 BrownFormanClA BF/A 104.37 -0.39 CrownCastl CCI 86.21 -0.61 Flowserve FLS 37.05 -1.32 IronMountain IRM 26.62 -0.46 MettlerToledo MTD 311.72 -5.60 SyngentaADR SYT 78.57 4.59 DunkinBrands DNKN 40.83 0.37
CrownHoldings CCK 45.50 0.40 Fluor FLR 43.88 -0.73 IsraelChemicals ICL 3.89 -0.15 MichaelKorsHldgs KORS 50.11 9.67 Sysco SYY 42.79 -0.36 t E Trade ETFC 22.63 -1.04
NYSE Aptargroup ATR 71.32 -0.99 BrownFormanClB BF/B 95.81 -0.47
s AquaAmerica WTR 31.73 -0.14 BuckeyePartners BPL 57.31 -0.08 CubeSmart CUBE 31.47 -0.10 FomentoEconMexADR FMX 93.01 -2.78 ItauUnibancoADR ITUB 5.77 -0.66 MidAmApt MAA 92.41 -1.44 TEConnectivity TEL 54.81 -2.40 EastWestBancorp EWBC 31.60 -1.16
Cummins CMI 88.97 -2.20 FootLocker FL 69.14 0.04 JPMorganChase JPM 57.03 -1.83 MindrayMedADR MR 27.20 0.06 TEGNA TGNA 23.34 -0.90 eBay EBAY 23.29 -0.65
ABBADR ABB 16.76 -0.46 Aramark ARMK 32.48 -0.31 Bunge BG 58.43 -2.81 11.51 -0.56 JacobsEngineering JEC 38.66
DDR Corp DDR 16.87 -0.18 FordMotor F -0.47 t MitsubishiUFJADR MTU 4.66 -0.18 TELUS TU 27.95 -0.01 ElectroArts EA 60.66 -3.54
t ADTCorp. ADT 24.94 -4.63 ArcelorMittalADR MT 3.49 -0.24 t CBRE Group CBG 26.29 -1.24
AES AES 9.29 -0.17 ArcherDan ADM 32.36 -3.10 CBSClA CBS/A 51.36 -1.00 DTEEnergy DTE 86.22 0.91 ForestCityRealtyA FCE/A 18.88 -0.61 JamesHardieADR JHX 11.19 -0.49 t MizuhoFinancialADR MFG 3.16 -0.03 TERNIUMADR TX 11.26 -0.40 EndoInternational ENDP 55.80 -0.77
Danaher DHR 84.37 -1.59 ForestCityRealtyB FCE/B 19.00 -0.63 Jarden JAH 51.61 -1.61 MobileTeleSysADR MBT 6.79 -0.24 TJX TJX 72.85 0.64 Equinix EQIX 312.59 1.15
Aflac AFL 57.28 0.77 ArrowElec ARW 50.69 -1.81 CBSClB CBS 46.63 -1.28
AGLResources GAS 64.65 0.21 Ashland ASH 92.27 -1.26 CFIndustries CF 29.45 -0.79 Darden DRI 62.15 -1.18 FortBrandsHomeSec FBHS 46.55 -1.58 JohnsJohns JNJ 103.41 -0.96 MohawkIndustries MHK 163.16 -4.46 TableauSoftware DATA 78.83 -2.07 t EricssonADR ERIC 8.54 -0.24
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6.97 -0.24 BTGroupADR BT 35.62 -0.23 CanonADR CAJ 27.62 -0.24 DrReddysLabADR RDY 44.61 -0.67 t GoldmanSachs GS 151.70 -7.95 KyoceraADR KYO 40.70
Alcoa AA -0.01 NielsenHoldings NLSN 47.21 -0.82 TimeWarnerCable TWC 182.09 -2.22 Hologic HOLX 34.83 -0.55
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DukeEnergy DUK 76.75 NikeClB NKE 62.55 -0.61 TimeWarner TWX 70.52 -1.83 JBHunt JBHT 71.66 -1.64
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THE WALL STREET JOURNAL. NY / NE Wednesday, February 3, 2016 | C11

DIVIDENDS & CREDIT MARKETS

Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Dividend announcements from February 2. Avenue Incm Cr Strat Fd ACP 14.1 .12 M Feb29 /Feb11 BlackRock Science & Tech BST 7.6 .10 M Feb29 /Feb16 BlkRk MuniYld CA Fd MYC 5.5 .074 M Mar01 /Feb16
BlackRck Rscs Comm Str Tr BCX 12.7 .0655 M Feb29 /Feb16 Blackrock Strategic Muni BSD 6.0 .071 M Mar01 /Feb16 BlkRk MuniYld CA Quality MCA 5.6 .073 M Mar01 /Feb16
Amount Payable / BlackRock Muni Bnd BIE 6.0 .076 M Mar01 /Feb16 BlackRock Taxable Mun Bd BBN 6.9 .1318 M Feb29 /Feb16 BlkRk MuniYld Ins Qlty MFT 5.9 .071 M Mar01 /Feb16
Company Symbol Yld % New/Old Frq Record BlackRock CA Muni 2018 BJZ 2.2 .0277 M Mar01 /Feb16 BlackRock Utility & Infr BUI 8.4 .121 M Feb29 /Feb16 BlkRk MuniYld Inv MYF 6.1 .0815 M Mar01 /Feb16
Increased BlackRock CA Municipal Tr BFZ 5.4 .0722 M Mar01 /Feb16 BlackRock VA Muni BHV 4.2 .0695 M Mar01 /Feb16 BlkRk MuniYld MI Qlty MIY 5.8 .069 M Mar01 /Feb16
Blackrock Core Bond Tr BHK 6.6 .071 M Feb29 /Feb16 BlackRockDurInco Tr BLW 7.5 .087 M Feb29 /Feb16 BlkRk MuniYld NJ Fd MYJ 5.7 .075 M Mar01 /Feb16
Archer Daniels Midland ADM 3.5 .30 /.28 Q Mar08 /Feb16
BlackRock Corp Hi Yd Fd HYT 8.8 .07 M Feb29 /Feb16 BlackRockFL Muni 2020 BFO 2.5 .031 M Mar01 /Feb16 BlkRk MuniYld PA Quality MPA 5.7 .0715 M Mar01 /Feb16
Armada Hoffler Properties AHH 6.4 .18 /.17 Q Apr07 /Mar30
BlackRock Def Opp Cr Tr BHL 4.8 .051 M Feb29 /Feb16 BlackRockMuni BLE 6.1 .079 M Mar01 /Feb16 BlkRk MuniYld Qlty II MQT 5.9 .067 M Mar01 /Feb16
First Business Finl Svcs FBIZ 2.2 .12 /.11 Q Feb26 /Feb12
BlackRock Enh Eq Div Tr BDJ 7.9 .0467 M Feb29 /Feb16 BlackRockMuni Tr BYM 5.8 .0715 M Mar01 /Feb16 BlkRk MuniYld Quality MQY 6.0 .08 M Mar01 /Feb16
GNC Holdings A GNC 2.9 .20 /.18 Q Mar25 /Mar11
BlackRock FR Incm Strat FRA 5.9 .061 M Feb29 /Feb16 BlackRockNY TrII BFY 5.3 .07 M Mar01 /Feb16 BlkRk NY Muni BQH 4.9 .062 M Mar01 /Feb16
Meredith Corp MDP 4.5 .495 /.4575 Q Mar15 /Feb29
Blackrock Global Trust BOE 10.3 .097 M Feb29 /Feb16 Blkrck MunHl NJ Qlty MUJ 6.1 .074 M Mar01 /Feb16 BlRk MuHldg NY Qlty MHN 5.4 .067 M Mar01 /Feb16
Western Refining Logistic WNRL 6.6 .3925 /.3825 Q Feb26 /Feb11
BlackRock Income Trust BKT 5.7 .031 M Feb29 /Feb16 BlkrckNYMuni Qlty BSE 5.0 .0575 M Mar01 /Feb16 BlRk Muyld NY Qlty MYN 5.4 .062 M Mar01 /Feb16
Westlake Chem Partners WLKP 6.3 .308 /.2994 Q Feb26 /Feb11
Blackrock Invest BKN 5.6 .074 M Mar01 /Feb16 BlkRk Credit Alloc Incm BTZ 8.0 .0805 M Feb29 /Feb16 BlRkMunyldQltyIII MYI 5.9 .074 M Mar01 /Feb16
Reduced BlackRock Long-Term Muni BTA 6.0 .058 M Mar01 /Feb16 BlkRk Debt Strat Fd DSU 7.3 .02 M Feb29 /Feb16 Cohen & Steers Dur Pfd LDP 8.2 .156 M Feb29 /Feb19
PDL BioPharma PDLI 7.3 .05 /.15 Q Mar11 /Mar04 BlackRock MA Tax-Exempt MHE 5.1 .058 M Mar01 /Feb16 BlkRk Engy Res Tr BGR 11.4 .11 M Feb29 /Feb16 Credit Suisse High Yld DHY 13.8 .024 M Feb23 /Feb17
Rent-A-Center RCII 3.2 .08 /.24 Q Apr21 /Apr04 BlackRock MD Muni BZM 4.3 .0545 M Mar01 /Feb16 BlkRk Enh Cap Inco CII 9.4 .10 M Feb29 /Feb16 CS X-Links Multi-Asset Hi MLTI 1.3 .0261 M Feb22 /Feb11
BlackRock Multi-Sector IT BIT 9.1 .1167 M Feb29 /Feb16 BlkRk Enhncd Govt Fd EGF 4.3 .049 M Feb29 /Feb16 Cushing Energy Incm Fd SRF 15.1 .0826 M Feb29 /Feb18
Funds and investment companies BlackRock Mun BAF 5.5 .0685 M Mar01 /Feb16 Blkrk FltRt InTr BGT 5.7 .0583 M Feb29 /Feb16 Cushing Renaissance Fund SZC 13.0 .41 Q Feb18 /Feb12
Advnt Clymr Enh Grth LCM 10.8 .21 Q Feb29 /Feb12 Blackrock Mun 2018 Term BPK 3.6 .047 M Mar01 /Feb16 BlkRk Health Sci BME 6.9 .20 M Feb29 /Feb16
CushingMLPTotalReturnFd SRV 11.9 .09 M Feb29 /Feb18
AdvntClymr Convertible II AGC 11.3 .047 M Feb29 /Feb12 BlackRock Mun Inco BBF 6.0 .07238 M Mar01 /Feb16 BlkRk Intl Grwth&Inco BGY 10.3 .049 M Feb29 /Feb16
Divers Real Asset Incm Fd DRA 11.5 .139 M Mar01 /Feb12
AdvntClymrFd AVK 9.2 .0939 M Feb29 /Feb12 Blackrock Mun Target Term BTT 4.3 .08 M Mar01 /Feb16 BlkRk Muni Inter Dur MUI 5.4 .0655 M Mar01 /Feb16
DoubleLine Incm Solutions DSL 11.4 .15 M Feb29 /Feb12
AllianzGI Conv & Incm NCV 15.9 .065 M Mar01 /Feb12 BlackRock Muni BBK 5.5 .075 M Mar01 /Feb16 BlkRk Muni NY Inter Dur MNE 4.6 .0575 M Mar01 /Feb16
Doubleline Oppor Credit DBL 7.9 .167 M Feb29 /Feb12
AllianzGI Conv & Incm II NCZ 15.6 .0575 M Mar01 /Feb12 BlackRock Municipal Trust BFK 6.0 .0751 M Mar01 /Feb16 BlkRk MuniAssets Fd MUA 4.9 .06 M Mar01 /Feb16
Duff & Phelps Sel Energy DSE 27.2 .22 Q Feb19 /Feb11
AllianzGI Div Incm ACV 12.2 .167 M Mar01 /Feb12 BlackRock NJ Muni BLJ 5.5 .0695 M Mar01 /Feb16 BlkRk Munienhanced MEN 5.8 .0605 M Mar01 /Feb16
BlackRock NJ Municipal Tr BNJ 5.9 .0751 M Mar01 /Feb16 BlkRk MuniHldgs MHD 5.9 .086 M Mar01 /Feb16 Eatn Vnc MI Muni MIW 5.0 .0591 M Feb29 /Feb22
BlackRock NY Muni 2018 BLH 2.0 .0256 M Mar01 /Feb16 BlkRk MuniHldgs CA Qlty MUC 5.4 .0675 M Mar01 /Feb16 Eatn Vnc NJ Muni EMJ 5.4 .0625 M Feb29 /Feb22
KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
BlackRock NY Municipal Tr BNY 5.2 .069 M Mar01 /Feb16 BlkRk MuniHldgs II MUH 6.0 .0775 M Mar01 /Feb16 Eatn Vnc NY Muni NYH 5.4 .05725 M Feb29 /Feb22
semiannual; S2:1: stock split and ratio; SO: spin-off. Eatn Vnc OH Muni EIO 4.9 .0585 M Feb29 /Feb22
BlkRk MuniHldgs Inv MFL 5.7 .0715 M Mar01 /Feb16
BlkRk MuniHldgs Qlty II MUE 5.9 .068 M Mar01 /Feb16 Eatn Vnc PA Muni EIP 5.7 .06442 M Feb29 /Feb22
BlkRk MuniHldgs Quality MUS 5.9 .0675 M Mar01 /Feb16 Eaton CA Trust CEV 5.2 .05884 M Feb18 /Feb11
Bonds | WSJ.com/bonds BlkRk MuniVest MVF 6.1 .0535 M Mar01 /Feb16 Eaton MA Trust
Eaton MI Trust
MMV
EMI
4.8
5.3
.05717 M
.05908 M
Feb18 /Feb11
Feb18 /Feb11
BlkRk MuniVest II MVT 6.0 .083 M Mar01 /Feb16
BlkRk MuniYield MYD 6.1 .077 M Mar01 /Feb16 Eaton NJ EVJ 5.8 .06067 M Feb18 /Feb11
Tracking Bond Benchmarks BlkRk MuniYld Arizona MZA 5.1 .0695 M Mar01 /Feb16 Continued on Page C12
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total return Yield (%), 52-Week Range l Latest
Borrowing Benchmarks | WSJ.com/bonds
close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High

1855.94 1.6 Broad market Barclays Aggregate 2.350 2.000 l 2.630 Money Rates February 2, 2016
2482.91 0.5 U.S. Corporate Barclays Capital 3.630 2.830 l 3.710 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
2432.12 0.6 Intermediate 3.030 2.230 l 3.120 guide to general levels but don’t always represent actual transactions.
3160.23 0.3 Long term 5.040 4.130 l 5.120
Inflation Week —52-WEEK— Week —52-WEEK—
524.94 1.1 Double-A-rated 2.540 2.070 l 2.700 Dec. index Chg From (%) Latest ago High Low Latest ago High Low
611.22 -0.2 Triple-B-rated 4.360 3.300 l 4.400 level Nov. '15 Dec. '14 26 weeks 0.465 0.415 0.585 0.065 Libor
323.26 -2.3 High Yield Constrained Merrill Lynch 9.376 5.853 l 9.771 U.S. consumer price index Secondary market One month 0.42850 0.43060 0.43060 0.17100
All items 236.525 –0.34 0.7 Three month 0.61920 0.62130 0.62430 0.25510
266.48 -4.6 Triple-C-rated 20.028 10.017 20.028
l
Core 243.779 –0.12 2.1 Fannie Mae Six month 0.86485 0.86570 0.86575 0.35880
2331.89 -1.8 High Yield 100 7.867 5.016 l 8.696 30-year mortgage yields One year 1.13785 1.15290 1.17800 0.61815
297.98 -1.9 Global High Yield Constrained 8.881 5.894 l 9.295 International rates 30 days 3.270 3.335 3.750 3.091 Euro Libor
259.76 -1.3 Europe High Yield Constrained 5.548 3.550 l 6.412 60 days 3.302 3.365 3.788 3.136 One month -0.233 -0.226 -0.004 -0.233
Week 52-Week
Latest ago High Low Three month -0.181 -0.166 0.028 -0.181
1606.68 1.6 U.S Agency Barclays 1.350 1.170 l 1.680 Other short-term rates Six month -0.107 -0.089 0.093 -0.109
1446.10 1.2 10-20 years 1.150 0.980 l 1.480 Prime rates One year 0.000 0.020 0.234 0.000
Week 52-Week
3159.06 5.0 20-plus years 2.920 2.610 l 3.370 U.S. 3.50 3.50 3.50 3.25 Latest ago high low Euro interbank offered rate (Euribor)
Canada 2.70 2.70 2.85 2.70 One month -0.231 -0.231 0.002 -0.232
1933.35 1.4 Mortgage-Backed Barclays 2.530 2.320 l 2.900 Japan 1.475 1.475 1.475 1.475 Call money Three month -0.161 -0.158 0.055 -0.162
1910.51 1.2 Ginnie Mae (GNMA) 2.450 2.180 l 2.860 2.25 2.25 2.25 2.00 Six month -0.094 -0.082 0.132 -0.094
Policy Rates
1131.28 1.4 Fannie mae (FNMA) 2.550 2.370 l 2.910 One year 0.009 0.025 0.266 0.009
Euro zone 0.05 0.05 0.05 0.05 Commercial paper
1740.77 Freddie Mac (FHLMC) Value 52-Week
1.5 2.580 2.370 l 2.930 Switzerland 0.50 0.50 0.50 0.50 30 to 270 days n.q. ... ... ... Latest Traded High Low
Britain 0.50 0.50 0.50 0.50
505.52 1.2 Muni Master Merrill Lynch 1.567 1.532 l 2.099 Australia 2.00 2.00 2.25 2.00 Commercial paper (AA financial) DTCC GCF Repo Index
354.36 1.7 7-12 year 1.542 1.542 l 2.144 90 days 0.53 0.55 0.64 0.06 Treasury 0.501 83.242 0.639 0.059
Overnight repurchase MBS 0.524 147.462 0.705 0.075
390.88 1.2 12-22 year 2.001 2.001 l 2.636 Euro commercial paper
U.S. 0.45 0.45 0.51 0.07 Open Implied
371.51 1.2 22-plus year 2.700 2.619 l 3.351 30 day n.q. n.q. -0.02 -0.12 Settle Change Interest Rate
U.S. government rates Two month n.q. n.q. -0.01 -0.09
2247.10 0.4 Yankee Barclays 2.990 2.430 l 3.110 Three month n.q. n.q. 0.01 -0.08 DTCC GCF Repo Index Futures
Discount Four month n.q. n.q. 0.02 0.00 Treasury Feb 99.515 -0.005 7191 0.485
533.38 2.3 Global Government J.P. Morgan 1.320 1.270 l 1.780
1.00 1.00 1.00 0.75 Five month n.q. n.q. 0.03 0.01 Treasury Mar 99.475 0.005 4633 0.525
768.45 1.7 Canada 1.460 1.410 l 1.970 Six month n.q. n.q. 0.04 0.02 Treasury Apr 99.480 0.020 1704 0.520
363.97 1.7 EMU 1.018 0.724 l 1.609 Federal funds
Effective rate 0.4000 0.4000 0.4000 0.0600 Notes on data:
697.42 2.3 France 0.830 0.490 l 1.360
High 0.5600 0.5600 0.5900 0.3100 U.S. prime rate is effective December 17, 2015.
507.17 2.6 Germany 0.420 0.160 l 1.040 Low 0.3500 0.3500 0.3500 0.0100 Discount rate is effective December 17, 2015.
282.55 1.6 Japan 0.510 0.480 l 0.890 Bid 0.3700 0.3800 0.5500 0.0300 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
Offer 0.5000 0.5000 0.5600 0.0500 Other prime rates aren’t directly comparable; lending practices vary widely by location;
556.02 2.4 Netherlands 0.590 0.240 l 1.130 DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in
applicable CUSIPs. Value traded is in billions of U.S. dollars.
856.83 3.8 U.K. 1.970 1.820 l 2.480 Treasury bill auction Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US.
666.12 -0.7 Emerging Markets ** 6.903 5.679 l 7.128 4 weeks 0.270 0.295 0.295 0.000 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
13 weeks 0.350 0.305 0.350 0.000 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In U.S. - dollar terms Euro-zone bonds
** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan

Global Government Bonds: Mapping Yields

Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/ Spread Under/Over U.S. Treasurys, in basis points
Try the  

highest-rated
Yield (%)
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
0.750 U.S. 2 0.742 t l 0.805 1.060 0.457
2.250 10 1.866 t l 1.950 2.269 1.668

 

5.500 Australia 2 1.887 t l 1.893 2.030 2.001 114.5 108.8 154.4
3.250 10 2.574 t l 2.574 2.825 2.457 70.8 62.4 78.9
4.250 France 2 -0.395 t l -0.387 -0.302 -0.083 -113.7 -119.3 -54.0
1.000 10 0.652 t l 0.682 0.994 0.545 -121.4 -126.8 -112.2
0.500
0.500
4.500
Germany 2 -0.472 t
10 0.309 t
Italy 2 -0.003 t
l
l

l
-0.458
0.353
0.003
-0.339
0.632
0.075
-0.178
0.275
0.344 -74.5
-155.7
-121.4 -126.4
-159.7
-80.2
-63.4
-139.3
-11.3
on Amazon
2.000
0.100
0.300
10 1.497 s
Japan 2 -0.154 s
10 0.078 s
l

l
l
1.480
-0.158
0.064
1.596
-0.011
0.265
1.609
0.013
-36.9

0.287 -178.8
-89.7
-47.0
-96.4
-188.7
-5.9
-44.4
-138.1
FREE for
0.500
2.150
1.000
Spain 2 -0.009 t
10 1.592 s
U.K. 2 0.378 t
l
l

l
-0.004
1.574
0.405
0.006
1.767
0.639
0.351 -75.1
1.476
0.375
-27.4
-36.4
-80.9
-37.6
-40.0
-10.6
-19.2
-8.2
60 days
2.000 10 1.545 t l 1.625 1.958 1.379 -32.1 -32.6 -28.9 With over 315 reviews and
Source: Tullett Prebon 4.8 stars, the Sennheiser
 ® is the #1
Corporate Debt
     
Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in
that same company’s share price. Here’s a look at both for two companies in the news.     
Investment-grade spreads that tightened the most… '  ! (     & 
6
Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg

Freeport–McMoRan Oil & Gas FCX 6.875 Feb. 15, ’23 1903 –24 1978 ... ...
Xerox XRX 4.800 March 1, ’35 335 –24 295 8.95 –5.09
AbbVie ABBV 1.800 May 14, ’18 100 –12 111 53.95 –0.81
International Business Machines IBM 1.625 May 15, ’20 47 –12 51 122.94 –1.51
Bank of Nova Scotia BNS 1.450 April 25, ’18 74 –11 n.a. 39.59 –2.13
Berkshire Hathaway Finance BRK 2.000 Aug. 15, ’18 36 –10 n.a. ... ...
Kraft Heinz Foods KHC 2.000 July 2, ’18 128 –9 120 ... ...
Mosaic MOS 4.250 Nov. 15, ’23 270 –9 n.a. 22.10 –7.61

…And spreads that widened the most Sennheiser Plantronics

salesforce.com CRM 0.250 April 1, ’18 551 178 732 64.52 –5.73  CS500 Series
EnLink Midstream Partners ENLK 4.150 June 1, ’25 928 124 n.a. 10.70 –7.12
Continental Resources CLR 4.500 April 15, ’23 1001 103 1088 18.92 –5.68 34/    ./
 
 
ONEOK Partners OKS 3.200 Sept. 15, ’18 685 87 550 26.96 1.13 522/   12  
012/ 
Xerox XRX 2.750 Sept. 1, ’20 405 76 225 8.95 –5.09 0/
   3
3/
 

 
Transocean RIG 6.500 Nov. 15, ’20 1919 74 1786 9.05 –7.56
SESI SPN 6.375 May 1, ’19 1778 63 1529 9.04 –5.34
JPMorgan Chase JPM 7.900 April 30, ’49 525 50 450 57.03 –3.11           
High-yield issues with the biggest price increases…   
   
Bond Price as % of face value Stock Perfomance  ! " #  $ % &% 
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg

Toys R US Property II TOY 8.500 Dec. 1, ’17 95.500 3.25 92.750 ... ... '         (  
P.F. Chang's China Bistro PFCB 10.250 June 30, ’20 84.250 2.25 76.000 ... ... '  % )         
Memorial Production Partners MEMP 6.875 Aug. 1, ’22 29.000 1.50 25.750 2.70 –3.57
Freeport–McMoRan FCX 4.000 Nov. 14, ’21 45.750 1.38 n.a. 4.35 –8.23 ' $ &   "  $ &  % *+% ,
- % ,-
Newfield Exploration NFX 5.625 July 1, ’24 83.500 1.38 80.750 26.62 –5.50
BBDBCN 6.000 Oct. 15, ’22 1.25 69.750 ...
Bombardier
Community Choice Financial CCFI 10.750 May 1, ’19
67.250
33.500 1.25 33.500 ...
...
...
7      02        % 
Talen Energy Supply TLN 6.500 June 1, ’25 66.250 1.25 n.a. ... ... 
  
 
  "  8
…And with the biggest price decreases
Cenveo
Rose Rock Midstream
Rent–A–Center
CVO
RRMS
RCII
11.500
5.625
6.625
May 15, ’17
Nov. 15, ’23
Nov. 15, ’20
55.000 –9.00
49.000
78.938
–5.75
–4.56
78.250
55.250
83.625
0.57
10.04
9.89
–2.16
–1.67
–25.53
Try yours FREE for 60 days!
EP Energy EPENEG 9.375 May 1, ’20 38.000 –4.00 41.750 ... ... Call 1-800-HEADSETS (1-800-432-3738)
5.000 March 15, ’19 –4.00 59.416 6.01
Whiting Petroleum 60.500 –9.76
 
 

 

WLL
Bombardier BBDBCN 7.750 March 15, ’20 73.000 –3.75 80.125 ... ...
Level 3 Financing LVLT 5.375 May 1, ’25 96.469 –3.58 99.250 ... ...
Laredo Petroleum LPI 7.375 May 1, ’22 71.000 –3.50 72.000 7.03 –3.17   

   ! 
 "
  # 
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. 

 $%%   #
 &&   
&  

Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C12 | Wednesday, February 3, 2016 THE WALL STREET JOURNAL.

Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

Yahoo: Time For Exxon, Bad News Is Relative OVERHEARD

To Wave the It really wasn’t much of a sanct dividend. Nintendo investors are

White Flag surprise party for Exxon

Mobil shareholders—a re-
minder that not everything
Yahoo may finally be open is relative.
to doing what investors want Following downbeat re-
it to do: throw in the towel. sults from fellow superma-
The company said Tues- jors BP and Chevron, the
Crouching Tiger
Exxon Mobil operating cash flow,
But no oil company can
thrive, and some can’t sur-
vive, at $30-a-barrel crude.
waiting for a rescue from Su-
per Mario. But the mush-
room-loving plumber remains
in billions
What is striking about Exxon stuck in limbo.
$15 is how well it can cope. The Japanese videogame
That relative distinction giant reported earnings in line

Larry W. Smith/European Pressphoto Agency

day it would trim staff by
15% and close five offices
with the goal of cutting $400
million in operating costs
this year. Yahoo also said it
would focus on email, search
and blogging site Tumblr
and would “engage on quali-
fied strategic proposals”—
the clearest sign yet it is
open to a sale. That is all in
addition to continuing work
on its previously announced
plan to spin off its core busi-
ness and Yahoo Japan stake.
The possibility of a sale is
crucial for Yahoo investors
who have lost confidence in
Chief Executive Marissa
Mayer’s ability to turn the
company around. Many had
been hoping that Ms. Mayer
would pursue an aggressive
restructuring and refocusing
of the company when she ar-
rived back in October 2012.
Instead, she has attempted
to reinvigorate Yahoo’s brand
and make it more mobile
through acquisitions and
high-profile hires. That strat-
egy hasn’t paid off.
Indeed, Yahoo’s core busi-
ness continues to decline.
Revenue excluding commis-
sions paid to search partners
fell 15% in the fourth quarter.
Given that, the new plan may
not go far enough. The $400
million in cuts only amounts
to about 8% of total 2015 op-
erating expenses.
Beyond that, investors are
unlikely to want to wait any
longer to see if Yahoo’s new
focus results in improved
performance. And Verizon
Communications, for one,
already has shown interest
in buying Yahoo.
For Yahoo, the best strate-
gic option may be to give up.
—Miriam Gottfried
granddaddy of them all re-
ported profits Tuesday that
beat analyst expectations for
the fourth quarter and full
year. Its stock promptly fell
by 2% as the 10%-plus drop
in oil prices so far this week
trumped any sense of relief.
Shareholders suffered the
further ignominy of learning
that Exxon, once the world’s
most valuable company, was
overtaken by Facebook for
fourth place on Monday. The
fact that Exxon, even in an
awful 2015, earned more
than twice as much as the
social-media company has in
its entire history is small
solace. It is the direction of
those profits—down 58% in
the fourth quarter from a
year ago—that set the tone.
Valeant’s Sales Growth: Is It Price or Volume?
Price or volume? That is a
question for many compa-
nies when it comes to what
is driving sales growth. It is
especially important for em-
battled Valeant Pharmaceu-
ticals International, which
has publicly played down the
role of drug-price increases
in its business model.
But internal emails raise
questions about where some
of its revenue growth is in
fact coming from.
The U.S. House of Repre-
sentatives Oversight Com-
mittee released documents
on Tuesday obtained from
Valeant, ahead of a hearing
Thursday on prescription-
drug prices. The committee
details an email sent by in-
terim Chief Executive How-
ard Schiller to CEO and
Chairman Michael Pearson
10
5 companies. Chevron is reel-
0
2014 ’15
Source: FactSet
THE WALL STREET JOURNAL.
The first quarter should
be even bleaker. Exxon indi-
cated that it is further bat-
tening down the hatches,
eliminating already reduced
net share buybacks. It paid
out nearly $13 billion that
way in 2013.
Management minces no
words about what it can and
can’t control and commodity
Pillbox
Valeant's annual revenue, in
billions
$10
Estimate
8 ter earnings call what drove
6 growth. He said: “In terms of
4 price volume, actually, vol-
2 ume was greater than price
0
2010 ’11 ’12 ’13
Source: FactSet
on May 21, 2015. Mr. Schiller,
who was CFO at the time,
wrote to Mr. Pearson: “[L]ast
night, one of our investors
asked about price vs. volume
for [the first quarter.] Ex-
cluding [Marathon Pharma-
ceuticals], price represented
about 60% of our growth,”
the email said. “If you in-
may make an absolute differ-
ence for its shareholders
when the commodity envi-
ronment improves for oil
ing from its worst quarterly
loss in 13 years, BP from its
worst annual loss ever, and
Shell from a credit-rating
downgrade.
Exxon, one of three triple-
A-rated U.S. companies in
any industry (though it was
prices clearly fall into the placed on credit watch with
latter category. In the fourth negative implications Tues-
quarter alone, it earned a day by Standard & Poor’s)
whopping $4.6 billion less doesn’t just have staying
than a year earlier in its up- power. It also has buying
stream business and similar power in what may turn into
plunges lie ahead. At these the sale of the century for
prices, even eliminating buy- hydrocarbon reserves.
backs won’t allow it to meet The party hasn’t even
its cash needs without bor- started.
rowing or touching its sacro- —Spencer Jakab
clude Marathon, price repre- tent with disclosures in the
sents about 80%.” Valeant company’s quarterly securi-
acquired two drugs from ties filing.
Marathon in February 2015. The issue of what is driv-
Back in April, Mr. Pearson ing sales growth is impor-
was asked on the first-quar- tant for Valeant as high drug
prices face scrutiny from
public officials and private
payers alike. As scrutiny
grows, the sustainability of
in terms of our growth. Out- revenues and profits depen-
side the United States, it’s all dent on price increases could
’14 ’15 volume. In fact, we have neg- prove fleeting. Last week,
ative price outside the U.S. Express Scripts moved to
with [currency movements.] exclude a Valeant diabetes
And in the U.S., it’s shifting drug from its formulary of
more to volume than price.” preferred drugs.
In response to a question With Mr. Pearson on med-
about the two statements, a ical leave, Mr. Schiller is due
Valeant spokeswoman said to testify Thursday before
that when the company talks the Oversight Committee.
about price versus volume, it Any further light shed on the
is referring to organic price versus volume question
growth. She added Mr. Pear- will be telling for investors.
son’s comments were consis- —Charley Grant
with expectations, but on the
area about which investors
truly care—its mobile strat-
egy—it failed to deliver.
Nintendo’s shares rocketed
36% in two days last March
when the company decided,
after much pleading from in-
vestors, to make a foray into
mobile gaming. The stock
surged another 31% in the
next five months. The gains,
however, fizzled as investors
questioned the company’s
ability to make its name in
the mobile space. Nintendo’s
stock is now 31% below last
August’s peak. In October,
Nintendo pushed back the
launch date of its first mobile
game to this March, from the
end of 2015. That game,
named “Miitomo,” which looks
more like a chat app than a
hard-core game, won’t include
any of the characters that
made the company famous.
The company said its second
title on smartphone will fea-
ture familiar characters from
Nintendo’s games, but it has
given no timeline.
It is remarkable how much
time Nintendo has wasted.
To see how to get things
right, look at Japanese rival
Square Enix. The maker of
“Final Fantasy” actively con-
verted popular franchises into
smartphone games. Games
for smart devices and Web
browsers accounted for nearly
half of its game sales in the
six months ended September.
Its share price has more than
doubled from five years ago.
Nintendo’s has dropped 24%.
For Nintendo to overcome
sluggish sales in consoles, Su-
per Mario should grab his
power-up mushroom and
jump on smartphones before
time expires.

Futures Contracts | WSJ.com/commodities Dividend Changes Company Symbol

Amount
Yld % New/Old Frq
Payable /
Record
Contract Open Continued from Page C11 Nuveen CA Muni Value NCA 4.3 .039 M Mar01 /Feb12
Metal & Petroleum Futures Open High hilo Low Settle Chg interest Nuveen California AMT NKX 5.5 .072 M Mar01 /Feb12
Contract Open Amount Payable /
Open High hi lo Low Settle Chg interest
Nuveen Connecticut Prem NTC 5.3 .057 M Mar01 /Feb12
Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Company Symbol Yld % New/Old Frq Record
Nuveen Credit Strt Inc Fd JQC 8.3 .0515 M Mar01 /Feb12
Copper-High (CMX)-25,000 lbs.; $ per lb. March 12.83 13.12 t 12.66 12.99 .16 283,870 Eaton NY Trust EVY 5.3 .0617 M Feb18 /Feb11 Nuveen Div Adv NZF 5.7 .069 M Mar01 /Feb12
Feb 2.0545 2.0630 2.0415 2.0520 0.0005 1,334 May 12.95 13.07 t 12.75 12.97 .09 226,823 Eaton OH Trsut EVO 5.1 .06092 M Feb18 /Feb11 Nuveen Div Commodity Fd CFD 8.1 .058 M Mar01 /Feb29
March 2.0635 2.0875 2.0405 2.0550 –0.0005 120,818 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Eaton PA Trust EVP 5.9 .06058 M Feb18 /Feb11 Nuveen Div Fnd NAD 5.8 .071 M Mar01 /Feb12
Gold (CMX)-100 troy oz.; $ per troy oz. March 25.25 25.25 t 25.25 25.25 … 1,515 Eaton Vance BuyWrite Opp ETV 9.5 .1108 M Feb29 /Feb22 Nuveen Div Fnd 2 NXZ 5.1 .061 M Mar01 /Feb12
Feb 1128.30 1131.40 s 1123.00 1127.30 –0.60 3,687 May 25.30 25.30 t 25.25 25.35 … 2,679 Eaton Vance CA Mun Bd EVM 5.4 .057 M Feb29 /Feb22 Nuveen Enhncd Mun Val Fd NEV 6.0 .08 M Mar01 /Feb12
April 1128.50 1131.50 s 1122.60 1127.20 –0.80 267,790 Cotton (ICE-US)-50,000 lbs.; cents per lb. Eaton Vance Eqty Inco Fd EOI 8.5 .0864 M Feb29 /Feb22 Nuveen Fd2 JPS 7.6 .058 M Mar01 /Feb12
June 1129.30 1131.60 s 1123.00 1127.60 –0.80 55,448 March 61.61 62.50 61.49 62.30 .51 103,901 Eaton Vance Eqty Inco II EOS 8.5 .0875 M Feb29 /Feb22 Nuveen Flexible Inv Incm JPW 9.9 .118 M Mar01 /Feb12
Aug 1127.70 1130.10 s 1125.30 1128.00 –0.90 10,463 May 61.95 62.78 61.92 62.65 .45 47,240 Eaton Vance FR Incm Plus EFF 8.1 .09 M Feb29 /Feb22
Dec 1130.80 1132.80 s 1126.10 1129.30 –0.90 16,163
Nuveen Gl Hi Incm Fd JGH 12.3 .132 M Mar01 /Feb12
Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Eaton Vance FR Incm Tr EFT 7.5 .075 M Feb29 /Feb22 Nuveen Hi Incm 2020 JHY 6.7 .057 M Mar01 /Feb12
Dec'17 1134.00 1136.40 s 1134.00 1134.80 –1.40 5,653 March 133.75 137.75 133.30 136.55 2.35 7,743 Eaton Vance Mun Bd Fd EIM 5.8 .0605 M Feb29 /Feb22
Nuveen High Incm Dec18 JHA .0505 M Mar01 /Feb12
Palladium (NYM) - 50 troy oz.; $ per troy oz. May 134.50 137.70 134.00 136.65 1.95 3,489 Eaton Vance Mun Bd Fd II EIV 5.2 .0581 M Feb29 /Feb22
Feb 493.45 494.30 493.45 490.60 –11.00 3
Nuveen Ins CA NXC 4.1 .0525 M Mar01 /Feb12
Eaton Vance Mun Incm 2028 ETX 4.5 .07083 M Feb29 /Feb22
March 505.00 505.30 490.40 491.30 –11.05 23,708 Nuveen Insured NY Select NXN 4.0 .046 M Mar01 /Feb12
Interest Rate Futures Eaton Vance Mun Income EVN 6.0 .07083 M Feb18 /Feb11
June 504.20 504.20 491.40 491.75 –11.10 1,802 Nuveen Intermed Dur Mun NID 5.2 .057 M Mar01 /Feb12
Eaton Vance Sr EVF 7.7 .035 M Feb18 /Feb11
Platinum (NYM)-50 troy oz.; $ per troy oz. Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Eaton Vance Tax-Mng Div ETY 9.7 .0843 M Feb29 /Feb22
Nuveen Invest Qual Muni NQM 5.8 .0775 M Mar01 /Feb12
Feb 865.00 865.60 864.70 854.40 –14.40 4 March 160-290 163-170 160-280 163-010 2-16.0 535,580 Nuveen MA Premium Income NMT 5.1 .059 M Mar01 /Feb12
Eaton Vance Tax-Mngd Opp ETW 11.5 .0973 M Feb29 /Feb22
April 872.40 873.40 853.50 855.70 –14.40 60,352 June 159-200 162-010 159-200 161-230 2-17.0 4,280 Nuveen MD Premium Income NMY 5.2 .0555 M Mar01 /Feb12
Eaton Vnce NY ENX 5.4 .05983 M Feb29 /Feb22
Silver (CMX)-5,000 troy oz.; $ per troy oz. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Eaton Vnce CA2 EIA 4.8 .0517 M Feb29 /Feb22 Nuveen MI Quality Income NUM 5.3 .062 M Mar01 /Feb12
Feb 14.260 14.260 14.255 14.276 –0.053 108 March 129-090 130-070 129-085 130-030 29.5 2,869,462 Eaton Vnce Ins MA MAB 4.3 .0542 M Feb29 /Feb22 Nuveen Minnesota Mun Incm NMS 5.4 .0665 M Mar01 /Feb12
March 14.345 14.405 14.230 14.289 –0.054 104,561 June 128-315 129-220 128-300 129-195 29.5 55,190 EatonVance TxAdv Opport ETO 11.0 .18 M Feb29 /Feb22 Nuveen Missouri Premium NOM 4.6 .061 M Mar01 /Feb12
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% EatonVnc SrFltRate EFR 8.0 .078 M Feb29 /Feb22 Nuveen Mrtg Opp Term Fd 2 JMT 7.0 .1275 M Mar01 /Feb12
March 31.37 31.53 29.57 29.88 –1.74 595,921 March 120-155 121-005 120-152 120-292 16.2 2,632,403 Etn Vnc Short Dur Fd EVG 8.3 .09 M Feb29 /Feb22 Nuveen Mtg Oppy Term Fd JLS 6.7 .1265 M Mar01 /Feb12
April 33.11 33.24 31.30 31.61 –1.75 213,645 June 120-080 120-227 120-080 120-217 17.2 41,064 Etn Vnc Tax Mgd Buy-Write ETB 8.7 .108 M Feb29 /Feb22 Nuveen Multi-Market Incm JMM 6.9 .04 M Mar01 /Feb12
May 34.69 34.83 32.88 33.24 –1.69 131,568 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% EtnVnc TaxAdvDiv EVT 9.7 .145 M Feb29 /Feb22 Nuveen Mun Opportunity Fd NIO 6.0 .073 M Mar01 /Feb12
June 36.07 36.13 34.25 34.63 –1.60 174,523 March 109-082 109-130 109-080 109-115 4.0 1,097,491 EtnVncLtdFd EVV 9.9 .1017 M Feb18 /Feb11 Nuveen Muni Advantage Fd NMA 5.6 .066 M Mar01 /Feb12
Dec 40.09 40.20 38.49 39.02 –1.23 182,236 June 109-060 109-087 109-060 109-090 4.7 33,035 EtnVncRskMngd ETJ 11.6 .093 M Feb29 /Feb22 Nuveen Muni Income Fund NMI 4.2 .0415 M Mar01 /Feb12
Dec'17 43.71 43.71 42.18 42.87 –0.92 90,735 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. EtnVncTxAdvGblDiv ETG 8.8 .1025 M Feb29 /Feb22 Nuveen Muni Mkt Opp NMO 5.4 .0635 M Mar01 /Feb12
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Feb 99.625 99.628 t 99.625 99.628 … 113,395 EtnVncTxMngGlDvEqInc EXG 12.1 .0813 M Feb29 /Feb22 Nuveen Muni Value Fund NUV 3.8 .0325 M Mar01 /Feb12
March 1.0405 1.0462 .9859 1.0109 –.0256 101,409 April 99.585 99.605 99.580 99.595 .015 150,661 EV National Municipal Opp EOT 4.7 .08583 M Feb29 /Feb22 Nuveen NC Premium Income NNC 4.4 .049 M Mar01 /Feb12
April 1.0539 1.0544 1.0005 1.0228 –.0280 54,663 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Fiduciary/Clymr Opp Fd FMO 16.5 .4308 Q Feb29 /Feb12 Nuveen NJ Div NXJ 5.9 .068 M Mar01 /Feb12
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. March 106.063 106.859 s 106.063 106.688 .938 30,184 Flaherty & Crumrine PFD 8.0 .09 M Feb29 /Feb22 Nuveen NJ Munl Value Fund NJV 4.0 .049 M Mar01 /Feb12
March 1.0837 1.0935 t .9796 1.0008 –.0822 118,091 1 Month Libor (CME)-$3,000,000; pts of 100% Flaherty & Crumrine Dyn DFP 8.4 .16 M Feb29 /Feb22 Nuveen NY Div Fnd NAN 5.6 .0665 M Mar01 /Feb12
April 1.3105 1.3105 t 1.2101 1.2296 –.0730 56,743 Feb 99.5700 99.5700 s 99.5700 99.5700 … 1,719 Flaherty & Crumrine Pfd FFC 8.2 .136 M Feb29 /Feb22 Nuveen NY Mun Value 2 NYV 4.0 .0525 M Mar01 /Feb12
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. March 99.5425 99.5425 s 99.5425 99.5400 .0050 507 Flaherty & Crumrine Pfd PFO 8.0 .073 M Feb29 /Feb22 Nuveen NY Muni Value Fund NNY 3.9 .0325 M Mar01 /Feb12
March 2.136 2.140 t 1.976 2.025 –.127 276,527 Eurodollar (CME)-$1,000,000; pts of 100% Flaherty & Crumrine TR Fd FLC 8.1 .136 M Feb29 /Feb22 Nuveen Ohio Qual Income NUO 5.2 .067 M Mar01 /Feb12
April 2.211 2.212 t 2.065 2.120 –.106 128,733 Feb 99.3825 99.3900 99.3825 99.3875 .0050 133,968
Guggenh Bond Mneg Dur Tr GBAB 7.1 .13817 M Feb29 /Feb12 Nuveen Pa Investment Qual NQP 5.7 .0675 M Mar01 /Feb12
May 2.263 2.265 t 2.130 2.181 –.099 113,243 March 99.3650 99.3800 99.3600 99.3800 .0150 1,222,389
Guggenheim Credit All Fd GGM 11.6 .1813 M Feb29 /Feb12 Nuveen PA Mun Value Fund NPN 4.0 .052 M Mar01 /Feb12
July 2.359 2.359 t 2.244 2.298 –.079 53,279 June 99.3100 99.3450 s 99.3050 99.3350 .0300 1,309,381 Guggenheim Enh ESF GGE 13.7 .485 Q Feb29 /Feb12 Nuveen Performance Plus NPP 5.7 .073 M Mar01 /Feb12
Sept 2.377 2.377 t 2.275 2.329 –.078 46,428 Guggenheim Strat Opps Fd GOF 13.5 .1821 M Feb29 /Feb12 Nuveen Preferred & Incm JPI 8.3 .1625 M Mar01 /Feb12
Dec 99.1600 99.2300 99.1600 99.2150 .0650 1,269,708
Oct 2.421 2.421 t 2.307 2.363 –.074 65,501 HnckJohn TxAdv HTD 6.9 .121 M Feb29 /Feb11 Nuveen Preferred Inc Opp JPC 8.5 .067 M Mar01 /Feb12
Invesco Adv Mun Incm II VKI 6.4 .065 M Feb29 /Feb12 Nuveen Prem Inco Muni 2 NPM 5.9 .072 M Mar01 /Feb12
Agriculture Futures Currency Futures Invesco Bond Fund VBF 4.7 .069 M Feb29 /Feb12 Nuveen Prem Inco Muni 4 NPT 5.9 .068 M Mar01 /Feb12
Corn (CBT)-5,000 bu.; cents per bu. Japanese Yen (CME)-¥12,500,000; $ per 100¥ Invesco CA Value Mun Incm VCV 5.9 .066 M Feb29 /Feb12 Nuveen Premier Muni Inc NPF 5.6 .065 M Mar01 /Feb12
March 371.25 373.75 s 369.00 372.50 1.25 588,307 March .8269 .8351 .8268 .8334 .0073 244,341 Invesco Credit Opps Fund VTA 8.9 .075 M Feb29 /Feb12 Nuveen Premium Inco Muni NPI 5.7 .0685 M Mar01 /Feb12
May 375.50 378.00 s 373.50 377.50 1.75 257,911 June .8297 .8371 .8293 .8355 .0071 1,379 Invesco High Income Tr II VLT 9.5 .0975 M Feb29 /Feb12 Nuveen Quality Income NQU 5.7 .0685 M Mar01 /Feb12
Oats (CBT)-5,000 bu.; cents per bu. Canadian Dollar (CME)-CAD 100,000; $ per CAD Invesco Inv Grade Muni VGM 6.4 .073 M Feb29 /Feb12 Nuveen Quality Muni Fund NQI 5.1 .0595 M Mar01 /Feb12
March 197.00 201.25 197.00 200.25 3.00 5,834 March .7167 .7173 .7102 .7130 –.0047 152,584 Invesco Inv Grade NY Muni VTN 5.7 .0708 M Feb29 /Feb12 Nuveen Quality pf JTP 7.9 .055 M Mar01 /Feb12
May 206.25 207.50 205.25 208.00 2.00 3,199 June .7161 .7168 .7104 .7132 –.0047 3,893 Invesco Mun Incm Opps Tr OIA 5.3 .0328 M Feb29 /Feb12 Nuveen Quality Pfd JHP 7.8 .056 M Mar01 /Feb12
Soybeans (CBT)-5,000 bu.; cents per bu. British Pound (CME)-£62,500; $ per £ Invesco Mun Opportunity VMO 6.5 .0733 M Feb29 /Feb12 Nuveen Real Asset Incm JRI 10.6 .1245 M Mar01 /Feb12
March 880.25 889.50 s 878.25 886.25 5.50 296,117 March 1.4422 1.4447 1.4327 1.4414 –.0029 268,106 Invesco Municipal Trust VKQ 6.2 .068 M Feb29 /Feb12 Nuveen Sel 3 NXR 3.7 .0455 M Mar01 /Feb12
May 882.00 890.50 s 879.75 888.75 6.50 150,840 June 1.4428 1.4450 1.4333 1.4419 –.0029 808 Invesco PA Value Mun Incm VPV 6.1 .0662 M Feb29 /Feb12 Nuveen Sel Tax Free NXP 3.8 .0455 M Mar01 /Feb12
Soybean Meal (CBT)-100 tons; $ per ton. Swiss Franc (CME)-CHF 125,000; $ per CHF Invesco Qlty Mun Inco IQI 5.9 .0635 M Feb29 /Feb12 Nuveen Sel TF NXQ 3.8 .0445 M Mar01 /Feb12
March 270.60 274.90 269.30 274.60 3.60 163,076 March .9818 .9847 .9769 .9819 –.0006 57,950 Invesco Senior Income Tr VVR 8.2 .026 M Feb29 /Feb12 Nuveen Select Maturities NIM 3.0 .026 M Mar01 /Feb12
May 272.70 276.80 271.40 276.50 3.40 86,263 June .9861 .9888 .9840 .9861 –.0007 250 Invesco Value Mun Incm Tr IIM 4.9 .07 M Feb29 /Feb12
Nuveen Select Quality NQS 5.3 .0635 M Mar01 /Feb12
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Australian Dollar (CME)-AUD 100,000; $ per AUD iSh Conservative Allocat AOK 4.1 .03475 M Feb08 /Feb04
Nuveen Senior Income Fund NSL 7.6 .035 M Mar01 /Feb12
March 30.76 31.19 30.72 30.79 .03 156,086 March .7094 .7124 .7021 .7035 –.0050 123,424 iSh Int Rate Hdgd Corp Bd LQDH 1.4 .10109 M Feb08 /Feb04
Nuveen Shrt Dur Cr Opp Fd JSD 8.2 .097 M Mar01 /Feb12
May 31.01 31.39 30.92 31.00 .04 98,937 June .7052 .7085 .6993 .7006 –.0050 749 iSh Int Rate Hi Yield Bd HYGH 7.6 .19713 M Feb08 /Feb04
Nuveen TX Qual Income NTX 4.5 .0545 M Mar01 /Feb12
Mexican Peso (CME)-MXN 500,000; $ per MXN iSh Interest Rate Hdg 10+ CLYH 3.5 .0259 M Feb08 /Feb04
Rough Rice (CBT)-2,000 cwt.; $ per cwt. iSh Interest Rate Hdg EM EMBH 4.3 .05689 M Feb08 /Feb04
Nuveen VA Premium Income NPV 4.6 .0545 M Mar01 /Feb12
March 1105.00 1123.00 1099.00 1117.50 17.00 9,149 March .05474 .05479 .05377 .05387 –.00077 111,734 NuveenCA 3 NZH 5.6 .067 M Mar01 /Feb12
May 1132.00 1152.00 1128.00 1145.00 16.50 2,874 June .05383 .05392 .05345 .05353 –.00076 53,624 iSh Yield Optimized Bd BYLD 6.5 .05344 M Feb08 /Feb04
iShares Curr Hdgd Intl HY HHYX 3.0 .03813 M Feb08 /Feb04 NuveenMuniIncoOpp Fd NMZ 6.5 .076 M Mar01 /Feb12
Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per € iShrs Mrnngstr Multi Asst IYLD 9.1 .06094 M Feb08 /Feb04 NuvFloatRteInco Fd JFR 7.4 .06 M Mar01 /Feb12
March 475.75 483.00 473.25 475.25 … 208,609 March 1.0898 1.0951 1.0897 1.0927 .0024 398,260 NuvGA2 NKG 4.7 .0535 M Mar01 /Feb12
JHancock Pr Div PDT 7.7 .09 M Feb29 /Feb11
May 480.50 487.25 478.00 480.00 –.50 78,596 June 1.0929 1.0981 1.0929 1.0958 .0024 3,240 PCM Fund PCM 10.7 .08 M Mar01 /Feb11
John Hancock Pfd II HPF 8.4 .14 M Feb29 /Feb11
Wheat (KC)-5,000 bu.; cents per bu. John Hancock Pfd Inc III HPS 8.0 .1222 M Feb29 /Feb11 PIMCO California Mun II PCK 6.4 .05375 M Mar01 /Feb11
March 466.75 473.75 464.00 465.25 –1.50 105,571 Index Futures PIMCO California Mun III PZC 5.9 .06 M Mar01 /Feb11
John Hancock Pfd Income HPI 8.2 .14 M Feb29 /Feb11
July 487.00 493.25 484.00 485.25 –1.75 50,672 Mini DJ Industrial Average (CBT)-$5 x index PIMCO California Muni PCQ 5.8 .077 M Mar01 /Feb11
Mangd Durtn InvGr Mun Fd MZF 5.3 .0616 M Feb29 /Feb12
Wheat (MPLS)-5,000 bu.; cents per bu. March 16317 16326 16020 16091 –249 61,534 MFS California Muni Fund CCA 5.0 .05 M Feb29 /Feb18 PIMCO Corporate & Incm PTY 11.8 .13 M Mar01 /Feb11
March 495.00 500.00 494.00 495.75 .75 31,847 June 16185 16224 15950 16010 –249 826 MFS Charter MCR 9.4 .05894 M Feb29 /Feb18 PIMCO Corporate & Incm PCN 9.9 .1125 M Mar01 /Feb11
May 500.50 505.75 499.75 501.75 1.00 16,473 S&P 500 Index (CME)-$250 x index MFS Govt Mkts Income Tr MGF 7.5 .03411 M Feb29 /Feb18 PIMCO Dynamic Credit Incm PCI 11.2 .16406 M Mar01 /Feb11
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. March 1929.00 1929.10 1889.20 1897.40 –33.90 111,662 MFS Hi Inc Muni CXE 5.9 .025 M Feb29 /Feb18 PIMCO Dynamic Income Fund PDI 10.0 .2205 M Mar01 /Feb11
March 157.950 159.500 157.250 157.850 .075 17,013 June 1890.00 1890.00 1888.00 1888.90 –34.10 2,434 MFS Hi Yld Muni CMU 5.9 .023 M Feb29 /Feb18 PIMCO Global StocksPLUS PGP 12.9 .18335 M Mar01 /Feb11
Aug 156.950 158.175 156.200 157.125 .150 6,224 PIMCO HiInco PHK 15.5 .10346 M Mar01 /Feb11
Mini S&P 500 (CME)-$50 x index MFS Inc Tr MIN 9.2 .03509 M Feb29 /Feb18
Cattle-Live (CME)-40,000 lbs.; cents per lb. March 1928.50 1929.25 1889.00 1897.50 –33.75 2,888,962 MFS Intermed Hi Inc CIF 11.1 .02002 M Feb29 /Feb18 PIMCO Incm Strategy Fd II PFN 11.3 .08 M Mar01 /Feb11
Feb 135.500 136.225 135.175 135.725 .050 32,834 June 1918.75 1919.00 1880.75 1889.00 –34.00 38,881 MFS Invest Grade Muni CXH 5.0 .042 M Feb29 /Feb18 PIMCO Inco Str Fd PFL 11.5 .09 M Mar01 /Feb11
April 134.400 135.075 134.100 134.750 .325 115,835 MFS Multimkt MMT 9.5 .04245 M Feb29 /Feb18 PIMCO Income Opportunity PKO 11.2 .19 M Mar01 /Feb11
Mini S&P Midcap 400 (CME)-$100 x index
Hogs-Lean (CME)-40,000 lbs.; cents per lb. March 1310.30 1311.40 1281.50 1287.20 –23.20 101,588 MFS Munl Inco MFM 5.5 .032 M Feb29 /Feb18 Pimco Muni Inc II PML 6.0 .065 M Mar01 /Feb11
Feb 65.225 65.325 64.125 64.200 –1.150 24,403 MFS Special Value MFV 11.1 .04638 M Feb29 /Feb18 PIMCO Muni Inc III PMX 6.2 .0623 M Mar01 /Feb11
April 70.050 70.275 69.000 69.100 –1.600 74,993 Mini Nasdaq 100 (CME)-$20 x index
March ... ... 4170.8 4192.0 –99.5 270,521 Neubrgr Brm Rl Est Sec Fd NRO 7.8 .03 M Feb29 /Feb16 PIMCO MuniFd PMF 6.3 .08125 M Mar01 /Feb11
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. June 4262.3 4268.0 4166.8 4186.3 –99.5 500 Nuv Float Rte Opp Fd JRO 8.1 .063 M Mar01 /Feb12 PIMCO NY Fd PNF 5.5 .057 M Mar01 /Feb11
March 243.30 250.20 241.90 248.70 7.80 3,918 Nuv Inter Duration Qlty NIQ 4.3 .0475 M Mar01 /Feb12 PIMCO Strat Income Fund RCS 11.3 .08 M Mar01 /Feb11
May 240.00 246.80 240.00 244.90 6.20 1,463 Mini Russell 2000 (ICE-US)-$100 x index
NuvAMTFreeMuniIncm NEA 5.4 .0625 M Mar01 /Feb12 PimcoNY PNI 6.1 .06625 M Mar01 /Feb11
March 1023.00 1024.90 1001.50 1007.40 –18.90 414,797
Milk (CME)-200,000 lbs., cents per lb. NuvAMTFreeMuniIncm NRK 5.3 .0585 M Mar01 /Feb12 PimcoNY Fd PYN 5.9 .0525 M Mar01 /Feb11
June 1018.00 1018.00 1003.40 1002.40 –18.90 50
Jan 13.73 13.73 13.73 13.73 … 3,238 NuvDivAdvMuniIncm NVG 5.2 .0645 M Mar01 /Feb12 Templeton Global GIM 4.8 .025 M Feb29 /Feb12
Feb 13.83 13.96 13.82 13.91 .03 4,984 Mini Russell 1000 (ICE-US)-$100 x index Nuveen AMT-Free Mun Value NUW 4.4 .065 M Mar01 /Feb12
March 1052.40 1053.90 1042.30 1047.00 –19.80 7,663
WstAssetClymr InflLnk Sec WIA 3.6 .032 M Feb29 /Feb12
Cocoa (ICE-US)-10 metric tons; $ per ton. Nuveen AZ Premium Income NAZ 5.0 .0665 M Mar01 /Feb12 WstAstClymr InfLnkd Fd WIW 3.9 .0335 M Feb29 /Feb12
March 2,852 2,858 2,753 2,761 –107 70,320 U.S. Dollar Index (ICE-US)-$1,000 x index Nuveen Build Am Bd Fd NBB 6.4 .112 M Mar01 /Feb12 Zweig Total Return ZTR 2.2 .076 M Feb19 /Feb11
May 2,858 2,860 2,761 2,767 –104 64,799 March 99.04 99.11 98.79 98.89 –.14 74,220 Nuveen Build Am Bd Opp Fd NBD 6.3 .1085 M Mar01 /Feb12
Coffee (ICE-US)-37,500 lbs.; cents per lb. June 99.07 99.19 98.90 98.99 –.14 2,245 Nuveen CA Div 2 NVX 5.0 .0675 M Mar01 /Feb12 Foreign
March 117.45 120.50 116.75 119.85 2.10 81,295 Nuveen CA Div Fnd NAC 5.8 .076 M Mar01 /Feb12 Goldcorp GG 2.1 .02 M Feb19 /Feb11
May 119.55 122.45 118.95 121.90 2.05 49,283 Source: SIX Financial Information Nuveen CA Mun Value Fd 2 NCB 4.4 .065 M Mar01 /Feb12 Santander Fin FR Sers 6 SANpB 4.7 .25 Q Mar07 /Feb21
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

HOME & DIGITAL

Electric Car Mash-Up Manning’s ‘80s

Comedy Mania
A Jeep with a side of Volkswagens MY RIDE | D4 SPORTS | D6

© 2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | D1

Time to Plan for Spontaneity

We book ahead for everything so
just plan to be unplanned, too;
new apps secure last-minute
reservations and tickets
BY NINA SOVICH

Every once in a while Heather Schwager

decides to stop on her way home from work
for a glass of wine.
The inspiration strikes when the 42-year-
old executive recruiter is just five minutes
from pulling into her Washington, D.C.
driveway, and the dollop of impulsivity cre-
ates a break from her routine.
Spontaneity, always in short supply, is
scarce these days. It is nearly impossible to
get reservations for dinner at coveted res-
taurants. Movies sell out, and vacations are
planned to the 15-minute increment. A
month ahead, parents can be sure their
child gets into an art activity at the local
museum and reserve ice cream at the
nearby cafe for lunch afterward.
All this planning may not be good for us,
creatively or romantically. Last-minute deci-
sions and the surprises that may stem from
them, such as finding a new, even better,
cafe with open tables, or watching a film
you hadn’t planned to see, are joyful.
Companies and small startups are re-
sponding by offering the option to plan at
the last moment. The appeal: organized
spontaneity.

JOHN KUCZALA FOR THE WALL STREET JOURNAL; PHOTOS BY ISTOCK; THINKSTOCK
“There are the people who tie up the
best restaurants and hotels really early,”
says Priceline Group CEO Darren Huston,
“but they are offset by another group who
make their decisions at the last moment.
There are real extremes of distribution.”
Spontaneous planning is growing fast,
says Mr. Huston, due in part to people book-
ing on their mobile phones and what he
calls industry plumbing: Hotels, restaurants
and entertainment venues are developing
the back-end capability to handle last-min-
ute requests.
“Hotels have realized they don’t have to
panic if they are going into the last 24
hours and everything isn’t booked,” Mr.
Huston says. Restaurants are also beginning
to keep tables free, knowing some custom-
ers want to make reservations at the last
moment. Currently one fifth of reservations
made on Priceline’s OpenTable app are done
an hour before the meal, a number which is Even the 3:10 on Wednesday Is Sold Out?
expected to increase as mobile usage in- It is difficult to catch a movie just minutes before the start time, leading many to book tickets days in advance.
creases. But, winging it lets people build bonds by requiring small leaps of faith that an activity will be fun.
A host of startups also are introducing
new ways for under-planners to take back

1/5 2/3 30% 5%

the night. Citymaps, an app that provides
information on local events, stores and din-
ing, has teamed up with concert-info app
Songkick to give real-time information on
what bands are playing nearby and whether of restaurant reservations are booked the same day. of all Priceline bookings are of all Priceline bookings
tickets are still available. YPlan, an enter- made on mobile devices are made on mobile devices where made on mobile
tainment planning app, aggregates theater
tickets for same-day purchase. Reservation made one hour before start today ... devices fivesyears
yearsago.
ago.
Please see PLANNING page D2 time ... Source: Priceline Group

Stretch Your Wireless Data Instead of Paying More

BY JOANNA STERN
Last month I got the dreaded
text message: “You’ve used about
90% of your data. Extra data for
this cycle is $15 per 1GB.”
Here’s what that message
should’ve said: “You’re going over-
board on the
Snapchat and
Facebook video,
gigabyte guzzler!
Turn on data sav-
ings in those apps
or you’ll be mortgaging your house
to keep paying our bills. Capisce?”
Most of us skirt just under our
monthly data allowances, although
plenty of poor souls pay that over-
age charge.
In 2015’s last quarter, 28% of
AT&T customers and 20% of Veri-
zon customers paid overages, a re-
port by Cowen and Co. found.
You don’t have to be a telecom
expert to figure out what’s hap-
pened. Bigger, more powerful
smartphones and video-heavy
websites and social media feeds
have us chewing through more
data than ever.
And it’s getting worse. Today,
U.S. smartphones use 3 to 4 giga-
bytes a month. By 2019, according
to Ericsson, they will consume five
times that.
We can only pray the data caps
won’t be so draconian then. But
today gigabytes are more precious
than gold. Still, you can save data
within your current plan by mak-
ing small adjustments. Welcome to
my three-step Data Diet—no scales
required.
Step 1: Curb your apps
I’ll admit it: I had no idea some
apps were such data hogs. If I had
known Snapchat used 2GB last
month, I never would’ve uploaded
that series of me eating a PB&J.
What we really need are data
usage alerts from the apps them-
selves. But maybe that’s like Na-
bisco telling you to cut back on
the Oreos. Until then, you need to
keep an eye on your phone OS’s
overall data meter. In Settings—
under Cellular for iOS, Data Usage
for Android—you can see how
much cellular data each app has
used.
Android offers the superior
tool. Input the dates of your billing
cycle and it automatically clears
the meter when the next cycle be-
gins. On the iPhone you have to
manually reset it. doesn’t. It’s a shame, since the
I discovered that Snapchat, savings can be significant.
Facebook, Twitter and Safari are A website that used 5MB to
my biggest data hoovers. But just load in Safari took half as much
because they’re bankrupting me data to load in Opera Mini and
doesn’t mean I’m going to use Chrome with data saving enabled.
them less. Instead, I’ve disabled Instead of loading the entire site,
cellular use of more data-intensive they load portions of it while de-
features—especially video play- creasing photo quality. You can re-
back. duce the load of websites in Safari,
In Facebook and Twitter, I dis- too, by using a content blocker like
abled auto-playing videos on mo- Purify. But that requires an addi-
bile. In Snapchat, I enabled Travel tional app—and an ethical debate
Mode, so it won’t automatically about ad blocking.
download video and photos in new Data saving is even more no-
stories from people I follow. Many ticeable with video. A three-min-
popular apps offer similar settings. ute HD video in Safari used 64MB.
Stanching the flow in a browser On Opera Mini, Video Boost re-
is harder. Google’s Chrome and duced it to 23MB. Sure, the com-
Opera’s Mini mobile browsers have pressed video was VHS-quality, but
a data saver mode to compress im- I don’t need IMAX to catch up on
ages and video, but Apple’s Safari news.
Chrome’s Data Saver is for An-
droid phones only. (A recent
Chrome update disabled the fea-
ture for iPhones; Google hopes it
will work again soon.) Opera
Mini’s features do work on
iPhones, but you still can’t disable
DREW EVANS/THE WALL STREET JOURNAL (2)

Safari from being the phone’s de-

fault browser. Some apps let you
use other browsers, but most auto-
matically launch Safari when you
tap a link.

Step 2: Bargain with carriers

Those annoying carrier ads,
which might as well claim one
horse and buggy is faster than an-
other, reveal something great:
These companies are desperate to
Stopping those pesky cellular overage text messages, left, is easier than you think. You can start by pinpointing the biggest data hogs using tools built in to keep you. Take advantage of all
Apple’s iOS and Google’s Android, right. Please see DATA page D3
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D2 | Wednesday, February 3, 2016 NY THE WALL STREET JOURNAL.

HOME & DIGITAL

What’s Selling Where? The Bloody Mary, Around the World

The St. Regis luxury hotel chain says its best-selling Bloody Mary cocktail was born in 1934, when a incorporating local flavors and garnishes. The chain shares each recipe online and in a cookbook. “We
bartender at its New York location, Fernand Petiot, perfected a recipe for a vodka and tomato juice want to encourage people to replicate it,” says Jim Petrus, St. Regis’s global brand leader. Below, some
cocktail. Today, the 36 St. Regis hotels around the world serve versions of the typically spicy concoction, of the far-flung iterations of the St. Regis Bloody Mary. — Ellen Byron

ST. REGIS HOTELS & RESORTS (5)

NEW YORK DUBAI ROME SINGAPORE KAUAI, HAWAII

Red Snapper Golden Mary Mary Chilli Padi Aloha Mary

More than 60 Bloody Mary cocktails
are sold every day at the King Cole bar
The St. Regis in Dubai, which
opened last November, has its own
Terranean Mary The “Aloha Mary” cocktail has lime
juice, wasabi powder, sriracha and a
in the St. Regis in New York. Bloody Mary recipe called “Golden The “Mary Terranean” is the Bloody The “Chilli Padi Mary,” sometimes garnish of sea asparagus. Locally
“People come in at all hours for Mary,” Mr. Petrus says. Mary of the St. Regis in Rome. “No served in a short tumbler instead of a sourced organic Hawaiian vodka and
this drink because we’re known for it,” It calls for, among other things, surprise, this has virgin olive oil, a traditional highball, includes guava wood-smoked sea salt add a
Mr. Petrus says. yellow tomato juice, a dash of edible splash of oregano, a dash of red hot lemongrass, ginger and thinly sliced local twist.
The New York version, called the gold-leaf flakes and a lot of patience: pepper powder and basil leaves,” Mr. chilli padi, a popular hot pepper in Mr. Petrus says guests on a tropical
“Red Snapper,” is the original Petiot Rose petals are combined with a bottle Petrus says. Southeast Asia. island don’t drink a Bloody Mary any
recipe, including lemon juice, tomato of premium vodka and set aside for “We want to make sure that when differently than people in urban
juice, Worcestershire sauce, Tabasco, seven to 30 days people receive the drink, they are taken settings. “The Bloody Mary is enjoyed
cayenne pepper, celery salt and whole aback, by not only the flavors but also universally at all times of the day, no
black peppercorns the beauty,” Mr. Petrus says. matter where you are,” he says.

PLANNING
brain is immobilized, you become
spontaneous and people will find
you more trustworthy. This in-
stinct to trust spontaneous people
Continued from the prior page applies both to people we know,
apps such as Tablelist allows peo- like our spouse, and ones we don’t,
ple to book tables at nightclubs, like politicians.
and Resy lets you buy a last-min- Debbie Lee Stalzer, a dentist in
ute restaurant reservation. New York, may be an avid planner
Still, is using your phone to but says she better remembers the
plan an event a truly spontaneous moments when she has been spon-
act? Edward Slingerland, professor taneous. On Christmas Eve last
of Asian studies at the University year, she and her husband wan-
of British Columbia and author of dered around to find a place to
“Trying Not to Try: The Art and eat.
Science of Spontaneity,” thinks They stopped in three restau-
not. rants and finally found a table at
“No one unplugs anymore,” the “local cheesy pasta place.” The
says Dr. Slingerland. “The restau- food wasn’t great but it was funny
FROM LEFT: CITYMAPS; RESY
Washington, D.C. hot spot Komi,
says because the small restaurant
is often booked weeks in advance
she and her husband, chef Johnny
Monis, opened sister restaurant
Little Serow next door.
“We wanted a place people
could just walk in to and get a bite
to eat,” says Ms. Marler of Little
Serow, which doesn’t take reserva-
tions. Since opening, however, the
northern Thai restaurant has be-
come such a hit there are often
lines stretching outside the door.
On a Saturday night, diners hire
professional line-waiters.
“Were we surprised by the line
waiters?” asks Ms. Marler. “Yes,
how could we not be. When we

rant has to be amazing because we and relaxing, Dr. Lee Stalzer says. went for a reservation-free restau-
will take a picture of the pasta and “We can’t leave the evening to rant it wasn’t exactly what we had
post to Facebook.” chance because the food might be in mind.”
He points out that constant bad. The thinking goes, it’s the Ms. Schwager, the executive re-
planning also kills a romantic vibe. only time I get off all week I’m go- cruiter, is also on the PTA and her
An unplanned moment can be ing to be really irritated if it’s two children have four activities a
bonding. It means taking a small bad,” says Rebecca Spang, author week. She often works out at 6
leap of faith that your lark will be The Citymaps app, left, shows nearby bars, restaurants, stores, and events. of “The Invention of the Restau- a.m., and she eats dinner out two
fun. Following an agenda is more The Resy app sells last-minute reservations to restaurants. rant: Paris and Modern Gastro- or three times a week.
rote and less exciting. This goes nomic Culture.” “It’s not the busyness that
for everything from being caught but have the plan unfold,” Dr. down the parts of your brain Still the desire for a less- bothers me, it’s the planning,” she
in a thunderstorm to exploring a Slingerland says of an ideal eve- which plan, primarily the prefron- planned existence lingers, even in says. “Anything I do spontaneously
new neighborhood in Bangkok. ning. “It’s the way a great dinner tal cortex, and which humans also the competitive world of restau- is five hundred times more enjoy-
“The trick is not to have a plan party feels.” This involves dialing use to lie. Once that part of your rants. Anne Marler, co-owner of able.”

In France, Learning to Say ‘Bonjour’ a Lot

BY EMILY MONACO

Paris
There’s an expression in
French: Simple comme bon-
jour, simple as hello. But for
expats, even seasoned ones,
bonjour is anything but sim-
ple.
©2015 California Closet Company, Inc. All rights reserved. Franchises independently owned and operated.

As an American who has

lived in France for nine
years, I’m often
EXPAT sought out by
new arrivals
wanting to
commiserate over shared
visa horror stories or inter-
actions with “rude” locals.
But I would knowingly shake
my head at their stories,
convinced they were due to
simple cultural misunder-
standings, the most common
of which is the use—or mis-
ISTOCK

use—of the word bonjour.

When entering a shop, a
restaurant, a café, an Ameri-
can is happy enough to
smile broadly and say: “Do
you have this in a size 8?”
or “We’re going to be five
California Closets creates custom storage for lunch.” In France, this is
solutions for every room in your home. abhorrently rude. No matter
the declaration, whether it’s
Visit our showroom or call today to arrange your
“One coffee, please,” or
complimentary in-home design consultation. “Could I use your phone to
call an ambulance? My wife
U PPE R EAST SI DE212.517.7877 appears to be in labor,” it
must begin with bonjour.
TR I B ECA & B ROOKLYN 646.486.3905 Omitting it is tantamount to
NASSAU & QU E E NS 516.334.0077 a spit in the face.
WESTCH ESTE R & H U DSON VALLEY 914.592.1001 Though I spouted this ad-
vice for years, I didn’t truly
californiaclosets.com understand the power of
bonjour until I began work-
A cafe in the Montmartre neighborhood of Paris.
ing for a small media com- smiling but greeting. Upon in that all-important French
pany in Paris three years arriving at the office, he concept: égalité, equality.
ago. For two years, I be- said, I shouldn’t start the Modern France was envi-
lieved that we all got along day reading emails or check- sioned as a country of
quite well, until the day my ing backups, but rather by equality; bonjour is an ac-
work best friend confessed: saying bonjour to all 30 em- knowledgment of your inter-
“People don’t really find you ployees, one by one. When I locutor, a nod to your coex-
all that friendly.” frowned and said I’d rather istence. Omitting it isn’t just
I balked. I’ve done my get right to my desk, he told rude, it’s a refusal to see the
share of smiling too much in me that in that case, I other as an equal.
Paris (where grins are should say bonjour the first Simple comme bonjour…
hoarded for close friends) to time I saw each person—ev- n’est-ce pas?
the point that my local fish- ery single day.
monger proposed marriage. It seemed like a waste of Read more articles about
When I pressed my col- time to me. But as time life overseas and for global
league for details, he said went on, I began to see that nomads everywhere at
that my problem wasn’t my friend’s logic was rooted http://blogs.wsj.com/expat
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Wednesday, February 3, 2016 | D3

HOME & DIGITAL

All the Reasons an Artist Treasures an Old Necklace

BY KRISTIANO ANG

On a summer day in 1980, when

Françoise Gilot was in Athens with her
husband Jonas Salk, the polio vaccine
pioneer, they popped into an antique
shop in Plaka, the city’s old neighbor-
hood situated on the slopes of the
Acropolis.
Ms. Gilot was looking for another
Ottoman-period bronze necklace, hav-
ing fallen in love with a
OBJECT OF similar piece she’d re-
SASHA MASLOV FOR THE WALL STREET JOURNAL (2)

DESIRE ceived from a friend.

The boutique was the
only place she thought
she could find such an accessory.
Their search was successful. More

BETTMANN/CORBIS
than three decades later, the necklace
her late husband purchased for her
that day remains her treasured, go-to
accessory. She wore it recently to a
gala at the Alliance Française in New
York.
Ms. Gilot has maintained an affinity Marriage and Motherhood
for all things Greek since growing up in Françoise Gilot, an artist in postwar Paris and today a 94-year-old New Yorker,
Neuilly-sur-Seine, an affluent Parisian says an antique necklace brings back memories from many points in her life. At
suburb. “Most children love folklore left, Ms. Gilot in her New York apartment; above, with the late Dr. Jonas Salk in
stories, and I had my mind fixed on an- 1970, shortly before they married; and below, in 1951 with Pablo Picasso. Lower
tique Greece always,” she said. left, the necklace that Dr. Salk bought for her in an Athens antique store.
Years would pass before she visited
the site of her childhood fantasies. She
read dozens of books about Greece
and drew pictures of Hellenic gods and
heroes inspired by ancient tales. In the
1960s, she would sail around the Ae-
gean Sea every summer with her chil-
dren, seeking out remnants of ancient
Greek city-states. Back at her London
studio, she created a series of paint-
ings, heavily influenced by animals and
classical Greece. Some are hanging in
her New York apartment today.
One of the prominent artists of
postwar Paris, Ms. Gilot, now 94, has
lived primarily in the U.S. since 1970.
Cambridge-educated, she is also the
author of nearly a dozen books, includ-
ing her best-selling memoir “Life with
Picasso,” about her relationship with als, because more precious metals costumes and the Bronze Age civiliza-
Pablo Picasso, who is the father of two were liable to be confiscated by the tion that preceded the Greece of
of her children. Her most recent work Ottoman authorities who ruled Greece Homer and Hesiod.
is “About Women,” a discourse she co- at that time. Despite her long-held Greco-philia,
wrote with the feminist writer Lisa Al- Ms. Gilot said she was attracted to Ms. Gilot said her interest in producing
ther about womanhood. the piece by its simplicity. “It’s very art influenced by that period has

ROGER VIOLLET/GETTY IMAGES

Ms. Gilot’s necklace comes from beautiful!” she said. “I’m much more in- waned. “I have expressed myself in
humble origins. It was crafted in the terested in folklore and art than a that manner, so it’s done for me and
18th century as a wedding gift for a lo- necklace with diamonds or gold. Art I’m not going to start again,” she said,
cal peasant, according to Ms. Gilot, comes from the people, and if you’re a referring to her childhood drawings and
who has seen several similar accesso- great artist, whether you’re from a high Greek-themed paintings. Looking at the
ries in the Benaki Museum in Athens. or low background doesn’t matter.” clasp of the necklace, which was
It is made from bronze, glass beads She also liked that the piece’s base shaped in the form of a phoenix, she
and other relatively inexpensive materi- metal is a reference to ancient warrior said, “This is a symbol of rebirth.”

Hunting Down the Data Hogs

DATA
Carriers sell you plans in gigabytes (GB), each equal to 1,000
megabytes (MB). Here’s how many MB were used in 30 minutes
of the following activities during a recent test: Continued from page D1
they offer—or consider switching.
Verizon has been running a se-
ries of promotional data give-
aways. The latest? If you sign up
for its Go90 app, you’ll automati-
cally get an extra 2GB of data for
the next three months. Last week,
when my spouse called to ask for a
27 MB 68 MB 87 MB 358 MB bit more data, they gave us 1GB of
“Bonus Data” for the year. My col-
30 minutes 30 minutes 30 minutes 30 minutes league has had similar luck getting
of stream- of video of scrolling of streaming a gig or two at AT&T. Just call or
ing music at calling with auto- video stop by.
It’s an effort to keep us from
auto quality play video switching to T-Mobile, which has
surged in subscribers after an
Note: Tests conducted on an iPhone 6s in the same location with a strong Verizon LTE signal. overhaul of the traditional carrier
model: It cut prices, eliminated pe-
nalizing overages and offers unme-
tered music streams and interna-
tional calls. Struggling Sprint now
entices switchers with data plans
for half of T-Mobile’s going rates
and is also dumping overage
DREW EVANS/THE WALL STREET JOURNAL (2)
minute clip on the “Saturday Night
Live” website used 40MB of data
on T-Mobile. On Verizon, it took
60MB.
Here’s the crazier part: With a
qualifying plan, you can watch un-
limited Netflix, Hulu and other
supported video services without
eating into your data. Yes, even all
10 seasons of “Friends.”
Step 3: Embrace public Wi-Fi
scriber, I have access to over
500,000 of them.
Time Warner uses a new tech-
nology called Passpoint to auto-
matically—and securely—log me in
when I’m in range. No need to
punch in username and password.
It was easy to set up and now I’m
pleasantly surprised to find my
phone connected to Wi-Fi, even
when I’m out walking the dog.
Many cable providers, including
Comcast’s Xfinity and Cablevi-
sion’s Optimum, offer similar op-
tions. If you don’t have one of
those, it may be worth subscribing
to a stand-alone Wi-Fi service.
Boingo’s $10-a-month service buys
you access to thousands of hot
spots around the world, including
Time Warner’s. (That’s the cost of
an extra GB or two on your cell
plan.)
There’s also free public Wi-Fi,
which you can find with Wi-Fi Map
for iOS and Android—just remem-
ber to take proper security precau-
tions before connecting.
The thing is, even your cellular

charges. Of course, when deciding
to switch, service quality should
be your first priority.
But at T-Mobile, a data plan
still goes further than most. In ad-
dition to its Music Freedom ser-
vice—which lets you stream from
Spotify, Apple Music and other
popular services without eating
into your data—it recently added
Binge On.
Though controversial for not
Disabling autoplaying videos in Facebook, above, is an instant data saver. being opt-in, Binge On scales all
Unlike Apple’s Safari, Opera’s Mini mobile browser, above right, offers built in video down to 480p DVD resolu-
data saving tools. tion to save data. Streaming a five-
Maybe you’ve heard of so-called
unlimited plans offered by Sprint,
T-Mobile and (in some cases)
AT&T. They’re not always the best
value, and despite the name, your
speeds can be slowed when you hit
a certain amount. For real peace of
mind, you’re going to want Wi-Fi.
Wi-Fi might be obvious, but the
fact that you may already pay for
widely available public Wi-Fi is
not. For instance, I’ve always ig-
nored the “TWC-WiFi” network I
see in various places, but it turns
out, as a Time Warner Cable sub-
carrier wants you to use Wi-Fi, be-
cause it lessens network strain.
That’s why AT&T and Google alike
are expanding their Wi-Fi foot-
print, some of which will use Pass-
point.
Combining Wi-Fi and cellular is
the best of both worlds. You can
watch HD video for hours, and still
avoid those cranky data-cap text
messages.
Write to Joanna Stern at
Joanna.Stern@wsj.com or on
Twitter @joannastern.

Barnes & Noble Tests Personalized Children’s Books

BY JEFFREY A. TRACHTENBERG the quarter ended October 2015, the
company posted a 4.5% drop in sales.
Barnes & Noble Inc., which is fight- Comparable-store sales fell 1%.
ing to boost store traffic, is launching Jim Milliot, editorial director of
a program that lets parents personal- Publishers Weekly, said only a handful
ize books by inserting the names and of publishers offer personalized titles.
photos of their children into starring “This is really aimed at kids, who get
roles in some of the country’s leading excited when they see their name. It
children’s titles. becomes something they can have fun
The retailer said Tuesday it has with,” he said.
struck a partnership with independent Shoppers won’t be able to instantly
ISTOCK

publisher Sourcebooks Inc. covering personalize their books at most Barnes

211 stores that will promote Source- & Noble locations. Instead, they’ll see
books’ “Put Me in the Story” personal- Parents will be able to give their children an in-store display, buy a book, and re-
ized-books program. a starring role in many popular books. ceive a voucher they can redeem online
Sourcebooks, a closely held pub- at BN.com/putmeinthestory. Customers
lisher based in Naperville, Ill., is mak- merchandising officer at Barnes & No- whose local Barnes & Noble stores
ing more than 100 titles available. ble. “This test will make our customers don’t have a display can also purchase
These include such works as “You!” by more aware of personalized books, and the titles directly at that website.
Sandra Magsamen and “I Love You So” if it’s successful, we’ll definitely ex- “We’ve been publishing personal-
by Marianne Richmond. Each personal- pand it.” The retailer intends to heav- ized books for three years via ‘Put Me
ized book will cost, on average, $29.99. ily promote the new program, she said. In the Story,’” said Dominique Raccah,
“The gift of personalization is Barnes & Noble is battling Ama- chief executive of Sourcebooks.
something we’ve always been inter- zon.com Inc. for both digital book sales “You’re going to see titles aimed at
ested in,” said Mary Amicucci, chief and online sales of physical books. For adults as well.”
D4 | Wednesday, February 3, 2016 THE WALL STREET JOURNAL.

CARS

The Jeep With Volkswagen Parts and an Extension Cord

Doug Manowitz, 59, a contrac- plan my trips around where I can
tor from New York City, on his plug in. At coffee shops, people
homemade electric Jeep, as told to plug in their laptops. I plug in my
A.J. Baime. vehicle, and I run the wire out the
I started this vehicle as a sci- door with a couple traffic cones on
ence experiment. I the sidewalk so no one trips.
MY RIDE thought, what if I Technically the vehicle sits on a
could build an elec- 1970 VW chassis, so it’s registered
tric vehicle mostly as an old car, and only costs about
out of parts I could buy on eBay? $300 a year to insure.
Essentially out of junk, with some In the future, I’d love to start a
new components added in? It shop class for high school stu-
would put out zero emissions, and dents. I’d say: Hey, here’s this car I
would cost me nothing to drive. I built. It’s useful, and a lot of the
could plug it in with a regular ex- materials are recycled. You can
tension cord wherever I went. build one, too. That would be a
I started with two donor cars win-win.
that I used to build a chassis: a
1957 VW Beetle and a 1970 Beetle. Contact A.J. Baime at
Then I found a fiberglass replica of Facebook.com/ajbaime
BEN SARLE FOR THE WALL STREET JOURNAL (4)

a Jeep CJ5 body. All this I brought

to a garage in Manhattan, where
some helpful guys gave me work- Doug Manowitz, 59, stands in
space, and I continued collecting Manhattan, with his homemade
components. electric vehicle, which he crafted out
When I got to the point that of two Volkswagens, a replica Jeep
the vehicle would roll, I towed it CJ5 body, an electric motor and
to the basement garage of my innumerable parts bought on eBay.
building on the Upper East Side. The charging cord plugs into the gas-
There, the work continued. I found cap hole. Range is about 20 miles,
seats, windshield wipers, rearview though Mr. Manowitz rarely goes
mirrors. I tried to keep some sense long without a recharge.
of color scheme, so the vehicle
would be aesthetically pleasing.
The roll bar came from a Porsche
Boxster. The electric motor I
bought new from a company in
California. For power, I used eight
12-volt gel cell batteries, strung in
a series, with one extra 12-volt
battery for the light signals, radio,
and windshield wipers.
The vehicle took a year to build,
and in February 2015, it passed in-
spection. Collectively, I spent
about $15,000. The range is proba-
bly 20 miles, but I usually drive no
more than 5 or 10—which is all I
need in Manhattan, anyway. I carry
a 50-foot extension cord, and I

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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
FILM
UCLA FILM & TELEVISION ARCHIVE
Seijun Suzuki’s ‘Branded to Kill’ (1967).
Japan’s Genre Bender
Action, Anarchy and
Audacity: A Seijun
Suzuki Retrospective
Billy Wilder Theater
Feb. 5 through March 13
BY DAVID MERMELSTEIN
T
hough best known in the
West as part of the Jap-
anese New Wave that
also embraced auteurs like
Nagisa Oshima and Shohei
Imamura, the director Seijun
Suzuki, now age 92, ultimately
enjoyed a varied career. And
the breadth of his oeuvre is
the focus of “Action, Anarchy
and Audacity: A Seijun Suzuki
Retrospective,” consisting of
21 features spanning 1957 to
2005 and running Friday
through March 13 at the Billy
Wilder Theater in Los Angeles,
presented by UCLA’s Film &
Television Archive with sup-
port from the Japan Founda-
tion. (An abbreviated version
of the series is also being
screened at the TIFF Bell
LIghtbox in Toronto through
April 2.)
The retrospective accompa-
nies the recent publication of
Tom Vick’s “Time and Place
Are Nonsense: The Films of Se-
ijun Suzuki,” the first compre-
hensive study in English of
these movies. The series opens
with the increasingly provoca-
tive B pictures Mr. Suzuki
made for the Nikkatsu studio in
the mid-1960s. Twisting yakuza
and noir conventions to the
breaking point—and beyond,
some would say—the director
exploded viewers’ expectations
by playing down narrative co-
hesion and character develop-
ment while elevating cinematic
experimentation, including the
use of unusual points of view,
image manipulation and, most
striking of all, emphasis on
color saturation and visual
contrast.
“Youth of the Beast” (1963),
a breakthrough effort, stars
Joe Shishido (the George Raft
of Japan and the star of five of
Mr. Suzuki’s pictures) as a dis-
graced cop who sets two rival
gangs against each other in an
attempt to clear both his own
name and that of his now-de-
ceased mentor. But the plot’s
intricacies get overwhelmed by
the material symbols of the
era: booze, broads and brawn,
all rendered Rat Pack style. The
prominent inclusion of a gay,
razor-wielding hood (the
brother of a crime boss) has
Pepper ...
And Salt
THE WALL STREET JOURNAL
“You and your mindless
humming.”
ARTS IN REVIEW
the paradoxical effect of plac-
ing the film squarely in its era
and well ahead of its time. And
the film’s final twist, though
beyond improbable, is deeply
satisfying.
Unfortunately, the director’s
bosses at Nikkatsu were not
amused, and after continued
exercises in genre bending—
particularly in the films “Tokyo
Drifter” (1966) and “Branded to
Kill” (1967)—Mr. Suzuki was
fired, keeping him from an-
other feature credit for a de-
cade. But before the ax fell
came three potent, socially
conscious works, each deal-
ing—in Mr. Suzuki’s unique
way—with war.
“Gate of Flesh” (1964) con-
cerns itself with the afteref-
fects of conflict, concentrating
on a coterie of colorfully
garbed prostitutes united for
their own protection during
the American occupation. U.S.
troops are portrayed unsympa-
thetically, but then so is every-
one else in this curious study
of human selfishness and the
battle between the sexes.
“Story of a Prostitute”
(1965), an extraordinary film,
is set in Japanese-occupied
Manchuria and shot in unchar-
acteristic, but poetically neces-
sary, black and white. Follow-
ing a group of “comfort
women” and the soldiers they
serve, this lyrical and stark
film charts the doomed rela-
tionship between one such
woman (a fierce Yumiko
Nogawa) and the sensitive cor-
poral assisting a brutal officer
to whom both are beholden.
“Fighting Elegy” (1966), also in
black and white, evokes Jean
Vigo’s “Zero for Conduct”
(1933) and Frank Borzage’s “No
Greater Glory” (1934) as it
muses on the excesses pro-
voked by adolescent testoster-
one. But there is no mistaking
its bald critique of the milita-
rism ascendant in 1930s Japan
and the ruin it engendered.
Mr. Suzuki’s return to the
screen in the mid-1970s culmi-
nated in his so-called Taisho
trilogy, named after the period
of rapid change (1912-26) in
which these films are set.
Though all three—“Zigeuner-
weisen” (1980), “Kagero-Za”
(1981) and “Yumeji” (1991)—
are lengthy and often inscruta-
ble, they are exceptional pic-
tures, bearing little outward
resemblance to the director’s
earlier work. Impeccably de-
tailed, lush and vigorously in-
trospective, they plumb
dreams, ghosts, sex and the
tension between tradition and
modernity, all the while play-
ing with continuity and logic.
Then, after another decade
away from the screen, Mr. Su-
zuki reappeared for a brief last
act, giving audiences “Pistol
Opera” (2001), a 21st-century
riff on his Nikkatsu years, and
the fairy-tale-like “Princess
Raccoon” (2005). This retro-
spective, which has already
been seen in Washington and
New York, heads to Berkeley,
Calif., and Cambridge, Mass.,
in May. But no matter where
the series screens, it affords
audiences a rare chance to
view the scope of Mr. Suzuki’s
singular vision.
Mr. Mermelstein writes for
the Journal on film and classi-
cal music.
FromShahtoSupremeLeader
Global/Local 1960-2015:
Six Artists From Iran
Grey Art Gallery
Through April 2
BY MICHAEL FITZGERALD
W
New York
hen you visit New York
University’s Grey Art
Gallery to see “Global/
Local 1960-2015: Six Artists
From Iran,” don’t miss the
basement. Deep underground,
the last work in the show will
shake you. Shiva Ahmadi’s ani-
mation, “Lotus” (2014), is not
ASIA SOCIETY
one of those plodding videos
almost everyone avoids. At less
than nine minutes, it grabs
viewers and immerses them in
a terrifying parable of enlight-
ened government turned bad.
With remarkable subtlety and
stunning beauty, a peaceful
world presided over by a Bud-
dha-like leader is transformed
by merchants of death into a
wasteland of violence and wan-
ton destruction.
Curated by Lynn Gumpert,
the exhibition focuses in depth
on the six artists to sketch
more than half a century of Ira-
nian art. Art-world cognoscenti
will critique the issues cap-
tured by the title—the globe-
hopping debate about whether
the art of a particular place can
maintain its roots in a local
culture and also address global
expectations. Everyone else
will be fascinated by the ways
this art allows us to explore
how gifted individuals have re-
sponded to Iran’s political and
cultural landscape from the fi-
nal decades of the reign of
Shah Mohammad Reza Pahlavi,
through the Islamic Revolution
of 1979, and up to the present
moment of incipient change in
Iranian society. The Grey Gal-
lery is uniquely positioned to
showcase this story because
the founder of the museum,
Abby Weed Grey, assembled
one of the largest collections of
Iranian art and donated 200
works, including many cur-
rently on view.
The 1960s and ’70s were a
time of aggressive internation-
alism that reflected both the
ambitions of a new generation
of artists and the political pro-
gram of the shah, who sought
to establish his authority on a
foundation that stretched from
the ancient history of the land
to the wealth and secularism of
the oil boom. In art, the trans-
formative movement was
called Saqqakhaneh (named af-
ter common, traditional foun-
tains). Rooted in Persian,
rather than Arab, heritage, Ira-
nian culture layered Islam over
far older traditions. Among the
Saqqakhaneh group, Parviz Ta-
navoli and Faramarz Pilaram
(both born in 1937) embraced
Both Unpredictable and Fluid
BY ROBERT GRESKOVIC
A
New York
s composer-librettist
Robert Ashley
(1930-2014) worked on
“Quicksand,” which he dubbed
an “opera-novel,” he asked
dancer and choreographer
Steve Paxton to set it all to
movement and theatrical de-
signer David Moodey to create
its lighting. Delicately under-
pinned by sound design and a
PAULA COURT
live mix by Tom Hamilton, the
three-act production—for
which Ashley’s audio compo-
nent was completed in 2013
and which concludes its world-
premiere engagement at the
Kitchen this Saturday—clocks
in at three hours including one
intermission. Ashley’s sound-
recorded reading of “Quick-
sand,” which was published in
book form in 2011, tells a loopy
spy story with elements of un-
savory politics and a govern-
ment overthrow in an unspeci-
fied Southeast Asian locale. We
learn that our narrator, who is
a composer, is making a trip
with his wife’s yoga class; we
hear specifics about the local
cuisine. Imagine a dry-voiced
uncle regaling his relatives
with a wryly spun yarn featur-
ing sometimes overlapping
plots with numerous twists
and turns. It’s all verbatum
speech; no singing is involved.
Mr. Paxton was a founding
member of the Judson Dance
ART
both ancient Iranian craft tra-
ditions and Western precedents
of abstraction to create a dis-
tinctive modernism. This range
is not as surprising as it may
seem. Mr. Tanavoli’s revival of
sculpture (a medium long ne-
glected by Islamic culture) in-
spired by folk objects paralleled
the American sculptor David
Smith’s embrace of industrial
welding and the crude beauty
of ancient Mediterranean uten-
sils. Pilaram blended Islamic
symbols with the geometric
patterns and luminous colors of
Persian manuscript illumina-
tion and Paul Klee’s paintings.
Meanwhile, under the pa-
tronage of the shah’s wife,
Farah, the government assem-
bled a first-class collection of
Western art, from Picasso
through Warhol.
The revolution brought a
sudden end to this interna-
tional eclecticism, in part be-
cause the shah had used West-
ernization as one of the
primary tools to justify his re-
PERFORMANCE
Maura Gahan in ‘Quicksand.’
Theater, the 1960s venture that
led to the experimentation
with pedestrian movement in
dance’s postmodern era. He
has provided “Quicksand” with
nonnarrative choreography as
well as spare but memorable
set and costume design. Pro-
gram notes describe the cho-
reographic segments as “diver-
tissements,” action not directly
related to the sometimes dra-
matic incidents making up
Ashley’s story. The result—
plain movement performed
with impressive focus and pre-
cision by calm, statuesque
Maura Gahan and impassively
intense Jurij Konjar, who are
joined briefly by Mr. Paxton as
an almost ghostly presence—
makes for rewarding watching.
Regularly, the choreo-
graphed segments—here, pre-
Wednesday, February 3, 2016 | D5
Shiva Ahmadi’s 2014 ‘Lotus’
(above); Chohreh Feyzdjou’s
1992 ‘Série K’ (left).
installations of objects from
the Holocaust, was crucial for
Feyzdjou’s portrayal of her
own sense of dislocation.
Three artists, Ms. Ahmadi,
Barbad Golshiri and Shahpour
Pouyan, represent the current
generation, those who were
born around the time of the
Revolution and grew up during
the devastating, eight-year war
with Iraq (1980-88). Both Ms.
Ahmadi and Mr. Pouyan moved
to the U.S. in recent years, and
both address issues of abusive
authority. Ms. Ahmadi’s “Lo-
tus” is based on a series of her
watercolors that were inspired
by intricate masterpieces of
16th-century art: Hieronymus
Bosch’s “Garden Earthly De-
lights” and Persian miniatures.
FRE DE RIC DELPECH
Mr. Pouyan’s work is driven by
conceptual strategies and ex-
tends from drawing and pho-
tography to sculpture and ce-
ramics. His steel sculptures
present an uncomfortable
gime and its many abuses. Mr. beauty by evoking both the
Tanavoli emigrated to Canada decorative elegance of Islamic
in 1979, and Pilaram, who re- design and the spiky shapes of
mained in Iran, died in obscu- warriors’ helmets.
rity in 1983. A younger genera- Unlike Ms. Ahmadi and Mr.
tion of artists, represented by Pouyan, Mr. Golshiri remains in
Iran, and he has forcefully cri-
tiqued contemporary politics,
Responding to Iran’s despite the danger of censor-
shifting political and ship, imprisonment or death.
His series “Curriculum Mortis”
cultural landscape. comprises photographs, sculp-
tures, videos and performances
that address the history of in-
Chohreh Feyzdjou (1955-1996), dividuals who, under the Is-
had already relocated, in her lamic Republic, have been
case to Paris. killed and denied proper burial.
Drawing on her exceptional “The Untitled Tomb” (2012) is
childhood as a Jew in Iran, a stencil made from sheets of
Feyzdjou reflected on upheav- iron that have been perforated
als from afar. Her “Série K” with written phrases. When
(1992) cannibalizes her earlier pressed against the earth and
work as the fodder for a monu- sprinkled with soot, it leaves
mental grid of drawings, each an ephemeral, but infinitely re-
carefully rolled and tied with a peatable, memorial to the lost.
string, but also blackened, as if
singed by fire. Her training Mr. FitzGerald teaches the
with the French artist Chris- history of modern and contem-
tian Boltanski, whose art exam- porary art at Trinity College,
ines memory and loss through Hartford, Conn.
senting activities like key- as if turned into a palm tree,
boarding at a computer; there, an image subsequently, wittily
finding Ms. Gahan pushing a echoed by an actual, bonsai-
curled-up Mr. Konjar as if size tree.
dead—get framed or engulfed The stream-of-consciousness
by the staging’s dominant set pace of Ashley’s reading of his
element: a hanging, patch- story mates intriguingly with
worked fabric that is some- the matter-of-fact appearances
times tethered to two rough of Ms. Gahan and Mr. Konjar as
rocks and otherwise suggests they enact their own mute
the house curtain used in Ka- scenes. The distinct worlds of
buki theaters. Ashley’s nonlinear narrative, of
A wooden chair, a large cut- Mr. Paxton’s diverting activities
out of a handgun, and a bay and of Mr. Moodey’s change-
window are other set pieces. able lighting remain separate
Throughout, Mr. Moodey’s but complementary. They all
marvelous lighting effects cre- share a plainness of tone and
ate scenes all their own. There confidence of pace.
are follow-spotlight beams There was a noticeable
making pools of brightness; shrinking of the audience after
flashbulb-bright flickers that the intermission, which comes
have the suddenness of little two-thirds of the way into the
explosions; and expansive loosely shaped three-act struc-
washes of changing colors, ture of “Quicksand.” While I
sometimes in concert with wasn’t surprised by this attri-
blasts of smoke that can hang tion, as there was some same-
in the air decoratively and dra- ness to the work’s momentum,
matically. The lights act to I wasn’t tempted to leave early.
shrink and expand the black- The tiny palm tree that Mr.
backedstage space. Paxton places where Ms. Gahan
Mr. Paxton’s movement seg- had stood and that helps cap
ments occasionally take cues the staging is one of the flights
obliquely from the flow of nar- of fancy I’m happy not to have
ration, with its Asian environ- missed.
ment, its sense of danger and Quicksand isn’t mentioned,
intrigue, its everyday activity. per se, in the course of these
More than once, Mr. Konjar ar- three hours, but its unpredict-
ticulates his upper body as if it ability and fluidity are felt po-
were growing boneless and etically throughout this opera-
turning to jelly. A recurring novel.
motif for Ms. Gahan—standing
still, wrapped in her own Mr. Greskovic writes about
arms—eventually presents her dance for the Journal.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
D6 | Wednesday, February 3, 2016 * * THE WALL STREET JOURNAL.

SPORTS
Manning’s Film Study: ‘80s Movies
The quarterback’s habit of arrived in Denver and realized the
importance his teammate placed on
quoting lines from classic the films, he needed a bit of a re-
comedies has teammates fresher. “I’ve watched a couple of the
movies again—‘Christmas Vacation,’
scrambling to brush up ‘Caddyshack,’” he said. “He wants
the room to keep up with the one-
BY KEVIN CLARK liners, the inside jokes.”
Most of Manning’s favorites have
San Jose, Calif. the same basic profile: wacky ‘80s
Playing alongside Denver Broncos comedies with legendary lead actors.
quarterback Peyton Manning has al- “Caddyshack” and “Stripes,” of
ways demanded a certain degree of course, star Bill Murray, while John
preparation. The future Hall of Candy and Chevy Chase star in other
Famer, who faces the Carolina Pan- Manning favorites.
thers in Sunday’s Super Bowl, is leg- Manning sees these assignments
endary for his study habits, film partly as a teambuilding experience
work and command of the playbook. and partly as a public service—his
So it’s no surprise that the team’s teammates, he figures, should proba-
backup quarterbacks
know exactly what is ex-
pected of them. “There
are some prerequisites
for being in the quarter-
back [meeting] room,”
said third-string quarter-

(L): PHOTO BY ORION PICTURES/GETTY IMAGES; (R): DAVID ZALUBOWSKI/ASSOCIATED PRESS

back Trevor Siemian.
“‘Caddyshack’, ‘Top Gun’,
‘[National Lampoon’s]
Christmas Vacation’.”
As well as mastering
how to read a blitz and
carve up a cover-2, Bron-
cos quarterbacks must
ace something just as im-
portant: knowledge of
Manning’s favorite 1980s
movies.
“We’ve given them as-
signments,” said Broncos
quarterback coach Greg
Knapp. “A summer ago,
we had them watch
‘Stripes’ so they could get
the lines down for that.
That way, during the sea-
son, they know [what it means] bly see these movies for their own
when someone says, “If we were in good.
Germany…I would have to make your “The past few years, as I’ve
bunk.’” reached my elder years as a quarter-
Knapp said that at any moment, back in the NFL, I’ve kind of tried to The 1980 comedy ‘Caddyshack’ is one of Denver Broncos quarterback Peyton Manning’s favorite movies.
Manning is liable to drop lines from get to know these rookies and try to
“Ferris Bueller’s Day Off” or “Bull get on the same page with them,” common quotes is “220, 221, what- that winning is “better than losing.” ground of teammates so he can re-
Durham,” among others. Keeping up Manning said in 2013, adding that ever it takes,” which is from the Not all of Manning’s quotes are so late to them.
with them can cause problems for connecting with younger players had 1983 Michael Keaton vehicle “Mr. easy to identify, however. “There’s Knapp said Manning’s insistence
the other quarterbacks—Brock Os- gotten harder since they don’t know Mom.” been times when one of us will on sprinkling team meetings with
weiler, who is 25, and Siemian, a 24- the same movie quotes. “What I’m Manning is also known to drop throw a quote out and the two youn- 30-year-old movie quotes is a strat-
year-old selected in the seventh finding out is we don’t speak the any number of lines from the 1988 ger guys are going, ‘Nope, never saw egy to break up the monotony of the
round of the 2015 draft. “I had al- same language because we don’t classic Bull Durham, particularly that one,’” Knapp said. weekly schedule. “The grind of the
ready seen ‘Caddyshack’ so going know the same favorite movies,” he those referencing the nickname Broncos coaches, like offensive season, in this case, seven months,
back and seeing it a second time was said. “Meat,” which Kevin Costner’s char- coordinator Rick Dennison, say one you need some levity, and one of his
pretty enjoyable,” Osweiler said. So Manning decided to get his acter bestows on Tim Robbins’ char- of Manning’s best traits is his ability outlets is quoting those movies,”
Siemian said he was mostly on teammates up to speed. There are acter, Nuke LaLoosh. Manning has to understand younger players, even Knapp said. “It’s right up my alley—
top of the movies Manning liked be- some deep cuts in his movie library. also said that Robbins delivers one as he gets older. He is famous for and I didn’t have to re-watch any of
fore joining the team, but when he Knapp said one of Manning’s most of his favorite quotes in the movie: studying the biographies and back- them.”

Carolina’s No-Firing Policy The Vanishing Homeless

BY KEVIN CLARK BY STU WOO
One year after he was hired San Francisco
as general manager of the Car- Football fans visiting the
olina Panthers, Dave Gettle- Super Bowl festivities might
man delivered a speech at the have no idea that any home-
Wharton School of the Univer- less people live here.
sity of Pennsylvania. Ahead of Sunday’s game,
Gettleman was there to talk the city said it relocated about
about leadership and, as a 24 people who had been living
longtime team executive who on the posh waterfront, where
had worked decades in the the National Football League
business before finally getting set up a week-long “Super
a top job, his audience ex- Bowl City.” Those two-dozen
pected to hear the standard people were essentially
NFL spiel about implementing bumped to the top of a wait-
your vision at all costs. ing list at San Francisco’s
But when Gettleman began most sought-after shelter.
ASSOCIATED PRESS
concertgoer in Golden Gate
Park in October. Just on Tues-
day morning, a police officer
was stabbed in a confrontation
near a homeless encampment.
For the Super Bowl, the city
closed off about six blocks
around Justin Herman Plaza,
where about 30 people typi-
cally spent the day, said Sam
Dodge, who is Mayor Ed Lee’s
point person on homelessness.
Beginning a few months
ago, the city’s homeless-out-
reach workers offered the 30
people a spot at the Naviga-
tion Center, which has quickly
those on the Mission Neigh-
borhood Health Center’s wait-
ing list will have to wait lon-
ger. “From the perspective of a
homeless person, that’s un-
fair,” said Laura Guzman, di-
rector of the health center.
Aaron and Shawna said
they had been living a block
away from the city’s conven-
tion center when police
started telling them to move a
month ago. They said resettled
in different spots within the
neighborhood, but when they
returned to their spot a week
ago, they found that their tent
and belongings were gone.

talking, he surprised the
roomful of aspiring general
managers by advocating a
leadership strategy almost un-
heard of in the NFL. He talked
about not firing people.
“I had this crazy idea that
there were smart people al-
ready in the building,” Gettle-
man said that day.
Two years on, Gettleman
and the head coach he inher-
ited, Ron Rivera, have led the
Panthers to an NFC Champion-
ship and a berth in the Super
Bowl, where they face the
Denver Broncos on Sunday.
One reason they got there is a
decision Gettleman made upon
assuming the role in 2013 to
avoid “five or six months” of
upheaval by keeping the entire
organization intact.
“People think that firing
people is always the answer,”
Gettleman said this week.
“And I’m sorry, I think every-
one should have an opportu-
nity to do their job.”
In today’s NFL, this is not a
popular line of thinking. In-
coming general managers are
known for cleaning house
when they join a new organi-
zation, installing their own
Carolina Panthers coach Ron Rivera, left, and GM Dave Gettleman
tleman was able to watch ev-
eryone in the organization go
about their business and accu-
rately evaluate their work.
It was not long after meet-
ing with Rivera that Gettleman
realized that rather than hir-
ing new people, he could bring
about the changes he wanted
in the organization simply by
selling the existing employees
on his way of thinking.
Rivera said on Tuesday
that the relationship between
himself, quarterback Cam
Newton and offensive coordi-
nator Mike Shula—all in the
building when Gettleman ar-
rived—has thrived due to con-
tinuity. “All of us have really
grown together for a period of
time,” Rivera said.
Gettleman already knew
some scouts in the organiza-
tion but was meeting other ex-
ecutives for the first time. Yet
he was able to reconfigure the
scouting department, first and
bit. Well, did anyone ever
teach him? We don’t know.”
Gettleman recalled an epi-
sode from last year’s NFL
Scouting Combine, when he
was evaluating defensive
backs. Specifically, Gettleman
was analyzing how corner-
backs performed in a “back-
pedal-and-turn” drill. He asked
his coaches to estimate how
many of the 53 players at the
event could pull off the ma-
neuver. The coaches told him
12. “I said: ‘So are we going to
take the other 41 and throw
them away? How many of the
other guys have the athletic
ability to back pedal and
turn?’ You have to look at
those things a little differently.
The league is different.”
The Panthers scouts
quickly adapted to these new
demands. When Gettleman
joined, he told them to find
bigger players to cement the
interior of the field. Over the
In addition, some homeless
people who had been camping
near the convention center
where the NFL is holding
events say authorities confis-
cated their belongings and
kicked them out of the area.
“The police told us that af-
ter the Super Bowl, y’all can
come back,” said 40-year-old
Aaron, who declined to give
his last name, as he stood in
front of a tent that he and his
wife, Shawna, set up under a
freeway off-ramp.
Nearly 7,000 homeless peo-
ple live in San Francisco, and
it has long been the city’s
thorniest political issue. The
problem has been especially
visible since three transient
people allegedly murdered a
Those displaced by
the Super Bowl won
entry to the most-
desirable shelter.
become the city’s most popu-
lar homeless program because
it provides curfew-less shelter,
meals and help finding more-
permanent housing. One or-
ganization, the Mission Neigh-
borhood Health Center, said it
has a waiting list of 150 people
for the Navigation Center.
Dodge said the city gave
priority at the Navigation Cen-
ter to the people living by Jus-
tin Herman Plaza. About 24
took the offer, meaning that
They moved to under an off-
ramp of the San Francisco-
Oakland Bay Bridge and in
front of a Best Buy store.
Their new, blue tent had no
belongings but for blankets
and four sandbags. “That’s all
I have,” Aaron said.
About 80 other tents were
set up in a row up and down
the block.
Dodge said he hoped to
move some of the people liv-
ing by the Best Buy to a shel-
ter expanding its capacity by
150 beds. That shelter is at
Pier 80, in the former ware-
house of Oracle Team USA, the
sailing team that was housed
there during San Francisco’s
last major sporting event, the
2013 America’s Cup.
DAVID PAUL MORRIS/BLOOMBERG NEWS

scouts and assistants and hir-
ing their own coach.
Gettleman said when he
was hired shortly after the
2012 season, there was plenty
going on in the Panthers or-
ganization. The team was get-
ting ready for free agency,
preparing for the upcoming
draft, and making plans for
the next season. As such, Get-
foremost by getting them to
better project raw talent.
“The average college player
just isn’t fundamentally sound.
You have to look at it differ-
ently,” Gettleman said. “For
example, take a linebacker.
The scout watches him and he
says, ‘Well he doesn’t know
how to use his hands.’ So he
knocks his grade down a little
next two years, the Panthers
selected Star Lotulelei and
Kawann Short, now one of the
league’s best tandems at de-
fensive tackle. “Anyone who is
married knows, you have to
work at that relationship,
whether it’s a work relation-
ship or a personal relation-
ship,” Gettleman said. “We
just talk all the time.” Justin Herman Plaza has been a popular spot for the homeless in San Francisco.