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When Laundry
Is Men’s Work
GETTY IMAGES
PERSONAL JOURNAL | D1
DJIA 16014.38 g 12.67 0.1%
What’s
News
Business & Finance
he selloff in European
T lenders is spreading to
a risky type of bank debt,
with investors fast sour-
ing on the bonds. A1
 The yen’s surge amid a
global flight to safety
could unravel Japan’s ef-
forts to reignite growth. C1
 Yellen likely will seek to
keep the Fed’s options open
when she appears before a
House panel Wednesday. A2
 Viacom’s CEO defended
his leadership after the me-
dia firm posted declines in
profit and revenue, sending
shares tumbling 21%. B1
 Disney posted record quar-
terly profit amid the success
of “Star Wars” and sought to
allay concerns about ESPN. B1
 Gasoline prices could dip
to $1 a gallon in parts of the
U.S. as oil’s slump persists.
U.S. crude fell to $27.94. A3, C1
 U.S. stocks rebounded
from session lows but ended
down slightly. The Dow eased
12.67 points to 16014.38. C4
 A panel recommended
FDA approval of a knockoff of
J&J’s Remicade, but the path
to market for such “biosimi-
lars” could be complicated. B1
 Coca-Cola’s revenue fell
8%. Profit rose 61% from a
2014 period that was hurt by
charges and a write-down. B1
World-Wide
 Trump won the New
Hampshire Republican presi-
dential primary by a deci-
sive margin, while the rest
of the GOP field was left as
murky as ever. Sanders
soundly defeated Clinton in
the Democratic race. A1, A4-7
 The Supreme Court tem-
porarily blocked the Obama
administration’s initiative
to limit carbon emissions
from power plants. A2
 Obama unveiled a final
budget proposal that lays
out a policy agenda for a
potential future Demo-
cratic successor. A2
 Saudi Arabia pressed its
offer to send troops to fight
Islamic State in Syria, while
Turkey asked for NATO
ships to help stem the flow
of refugees into Europe. A10
 A top Pentagon official
said a U.S.-led offensive to
wrest the Iraqi city of Mosul
from Islamic State won’t
be mounted this year. A10
 The pope plans to go to
the Texas border during his
Mexico trip to show soli-
darity with migrants. A8
 The mayor of Flint,
Mich., laid out a plan to re-
place the lead pipes that
contaminated city water. A3
 The IRS said it identi-
fied an automated attack
on its computer systems. A3
Journal Report
CIOs at the helm of
companies’ digital
transformation.
CIO Network R1-6
CONTENTS
Business News.. B2-3,5,7
Crossword................. B7
Global Finance........ C3
Heard on Street.. C12
Home & Digital. D2-3
In the Markets....... C4
s Copyright 2016 Dow Jones &
Company. All Rights Reserved
NASDAQ 4268.76 g 0.35%
Journal Report.. R1-5
Opinion............... A11-13
Property Report... C8
Sports.......................... D6
U.S. News............. A2-3
Weather..................... B7
World News A8-10,14
> this isolated jungle city as
* * * * * * WEDNESDAY, FEBRUARY 10, 2016 ~ VOL. CCLXVII NO. 33
STOXX 600 309.39 g 1.6%
Trump, Sanders Roll in N.H.
Cluster of
GOP Rivals
LeavesField
Muddled
BY JANET HOOK
AND PATRICK O’CONNOR
MANCHESTER, N.H.—Don-
ald Trump won the New Hamp-
shire Republican presidential
primary by a decisive margin
Tuesday, claiming his first vic-
tory of the 2016 campaign and
leaving the rest of the GOP
field as murky as ever.
The billionaire businessman
received 35% of the vote—more
than double his nearest com-
petitor—allowing him to regain
momentum in a race that he
has led since the summer on
the strength of his blustery,
tradition-defying style.
Lagging far behind was a
cluster of rivals, none of
whom broke from the pack
enough to establish himself as
a singular alternative to Mr.
Trump.
The biggest beneficiary was
Ohio Gov. John Kasich, buoyed
by a surge of late-deciding
voters from far back in the
pack. His second-place finish
rescues him from near-certain
elimination if he had failed to
catch fire in a state he had
made almost the sole focus of
his campaign.
New Hampshire had been
expected to be a springboard
for Sen. Marco Rubio, but his
widely panned debate perfor-
mance Saturday, where he was
attacked repeatedly by New
Jersey Gov. Chris Christie,
proved damaging. Exit polls
found two-thirds of voters
said recent debates had been
important to their decision on
how to vote.
For Mr. Christie, his wither-
ing takedown wasn’t enough
to elevate his own flagging
campaign, casting doubt on
his ability to continue in the
race. He canceled his appear-
ances in South Carolina, the
site of the next GOP primary,
opting to head home to New
Please see TRUMP page A4
Both Parties Settle In for Long Slog to Nomination
BY GERALD F. SEIB
For years, plenty of players
in the American political sys-
tem have quietly wished that
the outsize role
ANALYSIS of two small
and quirky
states—Iowa
and New Hampshire—in pick-
ing presidential nominees
could be reduced.
Maybe this is the year that
For Golfers in the Amazon, It’s a Jungle Out There
Vipers, piranhas are par for the course in Peru; machete in the rough
BY RYAN DUBE
IQUITOS, Peru—If you build
it, they will come, Mike Col-
lis figured. But in the Amazon
there can be complications, es-
pecially when what you’re
building is a golf course amid
vipers, piranhas and torrential
rains.
Mr. Collis, a retired insur-
ance manager from Birming-
ham, England, who is known in
“Mad Mick,” didn’t hear a
voice telling him to make any-
thing. Rather, he was drinking
beer one day when a TV show
about unusual places to play
golf came on. “I suddenly
Scott Gottlieb
Ebola’s Lessons
For the Zika Virus
OPINION | A13
WSJ.com HHHH $3.00
10-YR. TREAS. À 3/32 , yield 1.728% OIL $27.94 g $1.75 GOLD $1,198.70 À $0.80 EURO $1.1294 YEN 115.12
Clinton
Defeat
Prompts
Retooling
BY PETER NICHOLAS
AND LAURA MECKLER
MANCHESTER, N.H.—Ber-
nie Sanders soundly defeated
Democratic rival Hillary Clin-
ton in the New Hampshire pri-
mary on Tuesday, propelled by
independents and young vot-
ers wary about the economy
and skeptical that the next
generation of Americans will
live a better life.
Once considered a fringe
candidate who stood little
chance against Mrs. Clinton,
ANDREW HARRER/BLOOMBERG NEWS ,MIKE SEGAR/REUTERS
the Vermont senator pulled off
a sweeping victory. With more
than half of New Hampshire’s
precincts reporting, Mr. Sand-
ers had 60% of the vote com-
pared with 39% for Mrs. Clin-
ton. The Associated Press
called the race for Mr. Sanders
at 8 p.m. ET.
Mr. Sanders defeated Mrs.
Clinton among women and
swept all age categories except
voters over 65, surveys of vot-
ers as they exited polling pre-
cincts showed. The result un-
derscored the appeal of Mr.
Republican presidential candidate Donald Trump, top, took the New Hampshire primary by a wide Sanders’s argument that bil-
margin on Tuesday, while Sen. Bernie Sanders, bottom, beat Hillary Clinton for the Democrats. lionaire families and powerful
companies are rigging the
economy against the American
Election Results middle class.
REPUBLICAN PRIMARY At the same time, Mrs.
Exit polls: Among the 40% who
Clinton’s defeat suggested
As of 12:09 a.m. EST Wednesday, 82% of precincts reporting are angry with the government:
that her central message isn’t
Donald Trump 35% Trump 42% resonating and that she can’t
count on voters to choose her
John Kasich 16 Kasich 10 because of her years of expe-
rience as a first lady, senator
Ted Cruz 12 Cruz 15 and secretary of state. Only
27% of Democratic voters said
Jeb Bush 11 Rubio 11 Please see RACE page A6
Marco Rubio 11 Bush 9
DEMOCRATIC PRIMARY
Behind the Numbers
 Kasich’s New Hampshire
As of 12:09 a.m. EST Wednesday, 82% of precincts reporting
Among 18- to 29-year-olds:
bet pays off.......................... A4
Bernie Sanders 60% Sanders 83%  Economy and security
sway voters.......................... A7
Hillary Clinton 39 Clinton 16  For the latest results, go
to WSJ.com
Sources: Associated Press (results); National Election Pool exit poll conducted by Edison Research (exit polls) THE WALL STREET JOURNAL.
has come true. clear leader and with momen- On the Democratic side, ers—fade in importance and
With the results now in tum. Still, there’s no single al- Vermont Sen. Bernie Sanders give way to a large contingent
from New Hampshire’s pri- ternative to him, but rather a won an impressive victory, one of the Hispanic and African-
mary, what’s striking is how muddle of four candidates just that will rattle plenty of party American voters that figure to
little those two states, the below who will battle on; the leaders who wanted former be her strength and his Achil-
ones that often launch new field is far from winnowed. Secretary of State Hillary Clin- les' heel.
front-runners and bring lead- And now the campaign moves ton to cruise to the nomina- So voters in states across
ers crashing down to earth, on to states where the move- tion unruffled and well fi- America now have every rea-
have actually settled. ment conservatives and evan- nanced. But the race moves on son to think they, too, will get
Donald Trump won New gelicals who denied Mr. Trump to two states, Nevada and a voice in deciding these nom-
Hampshire’s Republican pri- victory in Iowa again hold South Carolina, where his core inations. Five, perhaps six Re-
mary in convincing fashion, much greater power. The pic- supporters—white, well-edu- publican candidates will battle
and he leaves the state as the ture is unsettled. cated liberals and young vot- Please see PARTIES page A6
European Bank Rout
Spills into Debt Market
i i i
Suisse Group AG and UniCredit
BY CHRISTOPHER WHITTALL
ity. A nine-hole course in SpA each fell nearly 7%. The
Peru’s remote northeast, it The selloff in European debt, called contingent con-
bills itself as the best course in lenders is spreading to a risky vertible bonds, or CoCos, has
the Peruvian Amazon. Actually, type of bank debt. dropped on average about 12
it is the only one anywhere in The debt pays high interest cents on the dollar this year,
the vast rain forest, manage- rates, and European banks according to Barclays PLC
ment says, not counting a looking to boost their capital strategists.
small pitch-and-putt at Ma- levels once sold it in huge Investors and executives
naus, Brazil. Members call the quantities to eager investors. are struggling amid the car-
Iquitos course Augusta of the But now with banks’ prospects nage to identify a clear reason
Amazon. dimming, investors are fast for the sudden loss of confi-
In Scotland, golfers struggle souring on the bonds. dence in European banks.
with massive greens and deep On Tuesday, European bank Many are far healthier than
jumped up and said to the bunkers with high walls at St. stocks declined 4%, according they were in 2008, having
other gringos, ‘Hey boys, let’s Andrews. In California, players to FactSet, to continue a shed billions in toxic assets
build ourselves a golf course,’ ” risk losing balls that fly over string of nearly unstinting and many risky businesses,
he recalls. “They all looked at cliffs at Pebble Beach. In Iqui- losses this year. They are now Please see DEBT page A14
me like ‘Mad Mick is at it tos, the challenge is to avoid down an average 27% in 2016.
again.’ ” the ferocious fish in the water Deutsche Bank AG has fallen  Heard on the Street: Deutsche
Today, the dream is a real- Please see GOLF page A8 about 40%. On Tuesday, Credit Bank’s capital concern......... C12
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 10, 2016 * **** THE WALL STREET JOURNAL.

U.S. NEWS
Court Blocks Obama’s Power-Plant Rule
BY BRENT KENDALL The court’s action, which Supreme Court has actually mandate. during the litigation. will not have to submit plans
AND AMY HARDER divided the justices along ide- stayed a regulation,” said Jeff Industry groups said that, None of the justices ex- or extension requests this Sep-
ological lines, came as a sur- Holmstead, an EPA official un- without a stay, scores of power plained their reasoning in the tember,” said Brian Potts, a
WASHINGTON—A divided prise to many observers, be- der President George W. Bush plants would be forced to shut one-page order, which blocked partner at Foley & Lardner LLP
Supreme Court on Tuesday cause the court has strict and a lawyer at Bracewell & down in the short term, harm- the regulation until the case is based in Wisconsin. “Some
temporarily blocked the criteria for granting stays. And Giuliani who represents clients ing power producers and their litigated by an appeals court states will probably keep
Obama administration’s initia- the Environmental Protection suing the agency over the rule. customers. The regulation and reaches the high court. working on plans. But many
tive to limit carbon emissions Agency rules, issued last sum- White House spokesman would require a 32% cut in Oral arguments at the ap- others will immediately put
from power plants, dealing a mer, have yet to be evaluated Josh Earnest said the adminis- power-plant carbon emissions peals level are scheduled for their pens down and wait for
potentially significant blow to by lower-court judges. tration disagreed with the June, with the possibility of a further guidance from the
a rule that is the cornerstone The EPA rule is aimed at court. “We remain confident ruling later in the year, on court.”
of President Barack Obama’s compelling utilities to shift we will prevail on the merits,”
Emissions limits are time to be heard in the Su- The ultimate outcome of the
efforts to slow climate change. away from coal-fired power he said. “At the same time, the the centerpiece of preme Court’s 2016-2017 term. case likely won’t be decided
The court, in a brief order, plants, which have been the administration will continue to The extent of the stay’s im- until the next president is in
granted emergency requests bedrock of U.S. electricity gen- take aggressive steps to make
president’s effort to mediate impact is unclear. office. Should the rule survive
by officials of mostly Republi- eration for decades, toward forward progress to reduce slow climate change. While the compliance deadline in the courts and a Republican
can-led states and business such renewable sources as carbon emissions.” isn’t until 2022, the EPA set an be elected president, a GOP
groups to delay the rule while wind and solar, and to a lesser More than 30 lawsuits have initial deadline of this Septem- administration would face hur-
they challenge its legality. extent toward natural gas and been filed against the EPA by 2030, based on emissions ber for states to submit a plan dles in abandoning the rules.
Although the court’s order nuclear power. rule, raising issues under the levels of 2005. The EPA said to eventually comply with the Very few final rules have
is temporary and isn’t a ruling “We are thrilled that the Clean Air Act that have been that a stay of its rule was un- rule, or otherwise explain why ever been repealed by an ad-
on the merits, it indicates the Supreme Court realized the little explored by the courts. necessary, because it was legal they want an extension of one ministration. To repeal a rule,
conservative majority harbors rule’s immediate impact and More than two dozen states and being implemented slowly. to two years. The EPA has re- you have to write, and legally
misgivings about the Obama froze its implementation, pro- challenging the rule argued The states don’t have to com- quired that all final plans be justify, a new regulation ex-
administration plan. It signals tecting workers and saving the regulation should be ply until 2022. submitted no later than 2018. plaining why you are getting
that the rules could run into countless dollars as our fight halted in the interim or else The court’s five conserva- One utility lawyer said the rid of the earlier one, a pro-
trouble in the courts, which against its legality continues,” they would need to immedi- tive justices controlled the stay order likely means states cess that could take years and
could hamper the administra- said Patrick Morrisey, the Re- ately begin enacting laws, re- outcome. The court’s four lib- won’t have to submit plans if would be unlikely to withstand
tion’s ability to follow through publican attorney general of vising regulations and devot- eral members indicated they they don’t want to by the ini- legal scrutiny, experts say.
on U.S. commitments in the coal-dependent West Virginia. ing large sums of money and would have denied the stay tial September deadline. —Jess Bravin
Paris climate deal. “It is the first time that the manpower to comply with the and left the regulation in place “States almost definitely contributed to this article.

Budget Proposal to Mold Debate Republicans Struggle

BY NICK TIMIRAOS

WASHINGTON—President
With Spending Plan
Barack Obama packed his final
budget proposal with more BY KRISTINA PETERSON those numbers is something I
than $4.1 trillion in spending think I would have a really hard
and tax breaks, a plan designed WASHINGTON—Congressio- time doing unless there were a
to leverage a few spots of bi- nal Republicans scornful of Presi- compelling reason to do so—and
partisan agreement while lay- dent Barack Obama’s budget re- so far I haven’t heard that com-
ing out an agenda for a poten- leased Tuesday aren’t having an pelling reason,” said Rep. Matt
tial Democratic successor. easy time with their own. Salmon (R., Ariz.).
The fiscal 2017 proposal also Republicans who last year tri- House Speaker Paul Ryan (R.,
calls for $2.8 trillion in new umphantly passed the first bi- Wis.) met with the Freedom Cau-
revenue over a decade, primar- cameral budget since 2009 are cus last week to begin discus-
ily from top earners and busi- struggling this year to repeat the sions over how they might be
PETE MAROVICH/BLOOMBERG NEWS

nesses. feat. They face challenges in both able to support a House GOP
It isn’t unusual for a budget writing and passing the spending budget. House Budget Committee
proposal in a president’s final blueprint, which, although it Chairman Tom Price (R., Ga.) has
year to be declared dead on ar- never becomes law, is viewed as said he hopes to build Republican
rival on Capitol Hill, but Tues- an important map of a party’s support for a budget by poten-
day’s blueprint appeared dead priorities and a sign of its unity. tially including a welfare over-
before arrival. The Republican The most public tussle is in haul and measures to shrink the
leaders of the House and Sen- the House, where conservative federal deficit in a part of the
ate budget committees last Republicans are revolting over blueprint that can pass Congress
week said they wouldn’t invite A government bookstore in Washington displays President Obama’s fiscal 2017 budget Tuesday. the next fiscal year’s spending under special, expedited proce-
Mr. Obama’s budget chief to level. House GOP leaders had said dures but is still subject to a
testify on the administration’s “advance security and prosper- drove most of that increase. dollars to deficits, while Demo- they would set the overall spend- presidential veto.
outline, breaking with long- ity in America for many years While the administration cratic candidates are touting ing for fiscal year 2017 at the Meanwhile, other Republicans,
standing protocol. to come.” said its proposals would hold new spending on college educa- amount agreed to in a two-year including centrists and defense
The new budget proposal Republicans said it did too deficits at or below 2.6% of GDP tion and entitlement programs. budget deal approved by Con- hawks, are equally adamant that
also carries less weight because little to rein in spending. “This in the coming years, the federal “The era of fiscal restraint is gress last October. the House budget hew to the Oc-
the White House prevailed on isn’t even a budget so much as debt held by the public is pro- over, but plunging bond yields But 167 Republicans voted tober deal, which boosted spend-
Republicans last fall to ease it is a progressive manual for jected to remain at its highest give politicians plenty of against that deal, struck between ing by $80 billion over two years.
across-the-board spending caps growing the federal govern- level in 70 years as a share of cover,” said Greg Valliere, chief then-House Speaker John Boe- “If they change that number,
known as the sequester, strik- ment at the expense of hard- the economy. global strategist at Horizon In- hner, Senate Majority Leader we won’t vote for the budget,”
ing a two-year deal that raises working Americans,” House While the White House cut vestments. Mitch McConnell (R., Ky.) and Mr. said Rep. Charlie Dent (R., Pa.),
spending limits through Sep- Speaker Paul Ryan of Wisconsin its projections of GDP growth The proposal includes that Obama. The opposition included who said the centrist Tuesday
tember 2017. said in a statement. for the next three years, lower could ultimately yield biparti- most of the Freedom Caucus, a Group discussed the issue. “I’m
Instead, Mr. Obama is trying The proposal projected the interest rates could hold down san agreement, including more group of the House’s most con- going to honor the agreement.”
to shape the debate his succes- federal deficit will rise to $616 deficits relative to earlier fore- funding for cancer research, the servative lawmakers, many of Mr. Ryan, a former chairman
sor will inherit: What should billion this fiscal year, or 3.3% casts by reducing the govern- painkiller-abuse epidemic and whom said they would be reluc- of the Budget Committee, has ex-
the nation prioritize in a slowly of gross domestic product, af- ment’s borrowing costs. the Zika virus as well as tax tant to approve a budget blue- pressed optimism that House Re-
growing economy as programs ter falling last year to $438 bil- Ideas being pushed during breaks designed to pull more print endorsing the deal’s second publicans would be able to iron
to care for an aging population lion, or 2.5% of GDP, the lowest the presidential campaign will low-income Americans into the year of spending. The first year of out any internal differences and
will account for a greater share level since 2007. The package further test fiscal restraint. Re- workforce. spending was approved in De- pass a budget, as they did last
of spending? lawmakers passed in December publicans are pushing tax cuts —Kristina Peterson cember legislation that expires at year after a fight between deficit
Mr. Obama said his budget that made some tax credits per- that even under generous as- and Amy Harder the end of September. and defense hawks nearly de-
reflected priorities that would manent and extended others sumptions would add trillions of contributed to this article. “Going back and voting for railed it.

Economic Tumult to Color

Yellen’s Testimony to House
BY BEN LEUBSDORF tional data on the economy’s press conference after the
health and watch how events central bank announced its
When Federal Reserve play out in financial markets. first interest-rate increase in
Chairwoman Janet Yellen One deepening source of nearly a decade.
speaks publicly Wednesday angst: New indications that The central bank, amid vol-
for the first time in eight expectations for future infla- atility in financial markets,
weeks, she will assess a mixed tion among households and last month acknowledged new
economic landscape that has investors are sinking, a sign uncertainty about how “global
made officials more cautious the Fed could have enduring economic and financial devel- Fed’s Janet Yellen is scheduled
about raising interest rates trouble getting inflation up to opments” might affect the U.S. to speak on Wednesday.
again next month. its 2% target. economic outlook. Still, the
Ms. Yellen, in remarks to She is set to present the Fed isn’t ready to rule out a rates at a gradual pace.
the House Financial Services Fed’s semiannual Monetary March rate increase. Last Fed officials in December
Committee, likely will seek to Policy Report and answer law- month it repeated its guidance penciled in four additional
keep the Fed’s options open makers’ questions. She last that officials plan to continue quarter-percentage-point rate
while officials await addi- spoke publicly at her Dec. 16 raising short-term interest increases this year following
their initial move to raise the
benchmark federal-funds rate
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THE WALL STREET JOURNAL.
Return to $1-a-Gallon Gas Seen Possible
Cheaper pump prices
could be in offing for
parts of country amid
crude’s slide, fuel glut
BY ALISON SIDER
Will Americans see $1-a-gal-
lon gasoline again? In some
parts of the U.S., the answer
could soon be yes.
The price of crude oil—the
main expense in generating fu-
els like gasoline —has plunged
from more than $107 a barrel
in June 2014 to around $30,
helping pull down prices at the
pump. In several places around
the U.S., a gallon of gasoline
now retails for just over $1.
Crude prices continued to
languish Monday, falling $1.75,
or 5.9%, to $27.94 in New York.
If oil prices continue to march
lower, gas stations across a
wide swath of the country
could soon peddle fill-ups at
prices not seen since the 1990s.
“There is a huge excess of
gasoline supply in the Mid-
west,” said Patrick DeHaan, se-
nior petroleum analyst at Gas-
Buddy. Refiners there can
access Canadian crude that’s
even cheaper than the U.S.
benchmark and have turned an
oil glut into a fuel glut.
“That could trigger fire
sales—very quick and low
price sales,” he said, adding
that in the Great Lakes region,
where gas stations are fiercely
competitive, ultralow gas
prices could appear as refiners
are forced to clear out supplies
of winter grade fuel. GasBuddy
said Tuesday that there’s a
“strong possibility” gasoline
prices in the region could dip
to 99 cents a gallon.
Where $1 gasoline does
make an appearance, experts
say it might prove fleet-
ing. Refiners often shut down
their plants in the spring, the
season between making gaso-
line to burn in the winter and
summer-grade fuel, a more ex-
pensive gasoline to produce
because it requires extra ingre-
dients to comply with hot-
weather emissions standards.
The cheapest gas in the U.S.
Flint Mayor Unveils Pipe Project
BY KRIS MAHER
The mayor of Flint, Mich.,
laid out a plan Tuesday to re-
place the lead pipes in the city
that became a major source of
drinking-water contamination
after the city began pumping
water from the Flint River to
homes in 2014.
Mayor Karen Weaver said
the $55 million project could
begin within a month. The
goal is to replace an estimated
15,000 lead service
lines within a year at no cost
to homeowners. The plan
would target only homes.
“We are going to restore
safe drinking water one house
at a time, one child at a time
until the lead pipes are gone,”
Ms. Weaver said. She said the
project would be a partnership
between the National Guard
and city workers.
She said the project would
require coordination with
state government and funding
from the Michigan Legislature.
A spokesman for Gov. Rick
Hackers Breach IRS Computer Systems
BY LAURA SAUNDERS
AND RICHARD RUBIN
WASHINGTON—The Inter-
nal Revenue Service said Tues-
day it identified an automated
attack on its computer sys-
tems aimed at gaining infor-
mation that could be used to
steal tax refunds.
The news came the same
day the administration an-
nounced a proposal to boost
cybersecurity in the federal
government, though the plan’s
request for extra funds has an
uncertain future in Congress.
The IRS said identity
thieves last month used per-
sonal data of taxpayers that
was stolen elsewhere in an at-
tempt to generate e-file PIN
numbers that could be used to
file fraudulent returns and
claim refunds.
E-file PIN numbers are used
by some individuals to file
their tax returns. The numbers
are different from Identity
Protection PIN numbers, which
* *
Price Check
The national average for a gallon of gas is below $2 for the first
time since 2009.
Daily average regular gas prices
$4 a gallon
3 Feb. 9
2
1 Oklahoma
Five most expensive states
Hawaii Calif. Alaska Nev. Wash.
0
2015
Source: AAA
is selling in Oklahoma City at a
7-Eleven station for just $1.11,
according to data from Gas-
Buddy.
The national average price
for the fuel is considerably
higher at $1.73 a gallon, accord-
ing to motor club AAA. That is
because more expensive gaso-
line sales on the West Coast are
inflating the U.S. average. Pro-
tracted refinery shutdowns in
the region have created some
supply shortfalls and extra pol-
lution-control fees mandated at
the state level push up gasoline
costs in the area.
But in parts of the U.S. that
are close to refining hubs, have
low state taxes on fuel or eas-
ier environmental standards,
gasoline retails for quite a bit
less. Some stations in Missouri
now sell regular for as little as
$1.22. Nationwide, 25% of U.S.
stations are already pricing
gasoline under $1.50, accord-
ing to AAA.
This year marks the first
time since March 2009, after
the global economic meltdown,
that the U.S. gasoline average
has dropped under $2. The last
time gas prices averaged $1 for
the whole country was March
1999 when U.S. crude fetched
less than $15 a barrel.
A lot of factors would have
The goal of the $55 million project is to replace an estimated
15,000 lead service lines within a year at no cost to homeowners.
Snyder, who is scheduled to
announce on Wednesday a
budget that is expected to in-
clude Flint initiatives, said in a
statement that state officials
were looking at the plan. “Ex-
perts say that the best plan is
to first coat the pipes with
phosphates to inhibit corro-
sion, then conduct a study to
the IRS gives victims of tax-
identification theft to protect
them from future issues.
The agency said it identi-
fied unauthorized attempts to
obtain e-file PINs for 464,000
Social Security numbers, of
which 101,000 successfully ac-
cessed an e-file PIN.
No personal taxpayer data
was disclosed by IRS systems,
the agency said. It is notifying
affected taxpayers by mail that
their personal information was
used by criminals. The IRS
said it is protecting their ac-
counts against tax ID theft.
An agency spokesman said
identity thieves would typi-
cally need much more data
than an e-file PIN to file a
fraudulent return. The agency
also said the incident isn’t re-
lated to last week’s outage of
IRS tax processing systems.
Over the past year, the IRS,
state tax officials and tax-
preparation firms have con-
ducted a campaign to combat
the growing problem of tax-re-
Wednesday, February 10, 2016 | A3
U.S. NEWS
Highest
Hawaii
$2.63
U.S. Avg.
$1.73
Lowest
$1.41
Five cheapest states
Ohio Kan. Ind. Mo. Okla.
2016
THE WALL STREET JOURNAL.
to conspire to drop oil and
gasoline prices that low, mak-
SPENCER PLATT/GETTY IMAGES
ing $1 gasoline unlikely for the
entire country. But the stars
could align in some cities.
“If oil drops closer to $20
per barrel and refinery pro-
duction remains strong, we
could have hundreds of sta-
tions around the country sell-
ing gas for less than a $1,” said A customer fills up in New York City this month. Pump prices are mirroring a drop in oil markets.
Michael Green, a spokesman
for AAA. That puts all three on a colli-
©T&CO. 2016
Places like Texas, where sion course with Iran, which
there are lots of fuel-making has said it hopes to pump an
plants and low taxes, are also extra 500,000 barrels a day as
likely candidates for ultracheap it tries to reassert its energy
gasoline. Some corner stations dominance now the U.S. and
may also want to post an eye- European Union have lifted nu-
catchingly low price in the clear sanctions on the country.
hopes of drawing more custom- Refineries, which have been
ers into the store to buy chips, running close to full tilt, are
soda and cigarettes, all of churning out excess fuel that is
which have typically higher building up in storage tanks,
profit margins than gasoline. which is starting to cut into
While it may be a stretch their margins. U.S. gasoline
for crude prices to collapse all stockpiles surged to a record
the way to $15 a barrel this high of 254 million gallons at
year, many energy forecasters the end of January, according
are predicting that the price of to the latest federal data. The
oil could slip into the $20 surprise increase surpassed
range amid worries that a analysts’ expectations and
slowing Chinese economy will helped pressure U.S. gasoline
cast a chill on fuel demand. futures to trade under $1 for
U.S. crude production has re- the first time since late 2008.
mained stubbornly high, while
Saudi Arabia and Russia have  Oil-flow shift poses price
refused to curb their oil output. threat............................................... C1
$200 million to Flint, as well
as other financing, bogged
down the energy bill. It is un-
clear whether Flint aid will re-
main part of that bill or move
separately. “We’re still trying
to find a way forward,” Senate
Majority Leader Mitch McCon- TIFFANY ENGAGEMENT
nell (R., Ky.) told reporters
Tuesday.
Drinking water in Flint be-
came contaminated with lead
REBECCA COOK/REUTERS
after the city began using the
Flint River as its water source
in April 2014. State officials
800 843 3269 | TIFFANY.COM
failed to require proper treat-
ment of the water with chemi-
cals to make it less corrosive.
As a result, lead began to leach
The Sentient Jet Card is a program of Sentient Jet, LLC (“Sentient”). Sentient arranges flights on behalf of jet card clients with FAR Part 135 direct air carriers that exercise full operational control of charter flights at all times. Flights will be operated by
from service lines that connect
FAR Part 135 direct air carriers that have been certified to provide service for Sentient jet card clients and that meet all FAA safety standards and additional safety standards established by Sentient. (Refer to www.sentient.com/standards for details.)
determine which pipes need to
water mains to homes, as well
as from home plumbing. I fly Sentient Jet.
be replaced,” the statement In December, the city began
said. adding phosphate to help re-
Meanwhile, Democratic and coat the lead pipes throughout 877.845.0055
Republican senators are dis- the city. The National Guard is sentient.com
cussing what federal assis- continuing to hand out bottled
tance they will offer Flint and water and filters to Flint’s
potentially other cities with nearly 100,000 residents.
drinking-water problems. Last —Kristina Peterson
week, a proposal to provide contributed to this article.
fund fraud, a crime in which believe are too easy for hack-
thieves use stolen personal in- ers to penetrate.
formation to file a return The plan would include an
claiming a fraudulent refund. expansion of training and re-
In 2015, hackers stole the cruiting for federal jobs that
personal information of more focus on cybersecurity, as well
than 330,000 taxpayers from as an education-loan forgive-
the IRS’s “Get Transcript” da- ness program for people who
tabase, which provided data remain in certain posts.
from prior returns. “The federal government—
Meantime, White House of- which is obligated to protect
ficials said they plan to enact the information provided to it
a range of initiatives this year by the American people—has a
they believe will strengthen unique responsibility to lead,”
federal computer networks President Barack Obama wrote
against cyberattacks. in an op-ed article in Tues- NewYork today, L.A. tomorrow, then home to Connecticut...
Obama administration offi- day’s Wall Street Journal. “But My life is always on the go, but I wouldn’t have it any other
cials are instituting what they the fact is we still don’t have way. In my line of work, you can’t afford delays or missed
call a cybersecurity national in place all the tools we need, opportunities. Whether getting to my next meeting or
action plan, which would cre- including ones many busi-
making it home to the kids for bedtime, I am confident in my
ate a federal chief information nesses rely on every day.”
security officer, establish a Some parts of the plan can commitments. And for each and every opportunity... I’m there.
new commission that looks for be implemented unilaterally,
I fly to seize the moment.
ways to protect computer net- but the White House is seeking
works, and increase coordina- a 35% increase in the cyberse- I fly to make the most of my time.
tion among federal officials curity budget to secure $19 I fly Sentient Jet.
who focus on privacy issues. billion in funding for many of
The officials also will look the programs next fiscal year. Sensible, intelligent private aviation®
to overhaul outdated govern- —Damian Paletta
ment computer systems they 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
A4 | Wednesday, February 10, 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.

The candidates who did what they wanted to do, and those who fell short, in New Hampshire's primary
mary Tuesday:

“We are going to do “Are you guys “Maybe, just “Do you want “We cannot win by “It's not whether “I did not do well “We've decided to “I will carry on
something so good, ready for a radical maybe, we're someone like nominating you get knocked on Saturday night. go home to New this fight for as
and so fast and so idea? Together, we turning the page Hillary Clinton or someone whose down that So listen to this: Jersey tomorrow long as the people
strong, and the are going to create on a dark part of Donald Trump that position on matters. It's That will never and we're going stand with me.”
world is going to an economy that American will pursue their Obamacare is the whether you get happen again.” to take a deep —from Ben
respect us works for all of us, politics.” ambitions at the same as Bernie back up.” —Marco Rubio breath and see Carson’s official
again—believe me.” not just the 1%.” —John Kasich expense of service Sanders's.” —Hillary Clinton what the results Facebook page
—Donald Trump —Bernie Sanders to the people?” —Ted Cruz are tonight.”
—Jeb Bush —Chris Christie
Got a convincing He started ahead in In the one state He had one foot in New Hampshire was She not only lost big, A strong Iowa finish Relentless attacks His long fade from
win. As abonus, he New Hampshire and where his appeal to the political grave never going to be as but showed that her gave him a shot to on Marco Rubio prominence
emerged with a stayed ahead, and moderates and after the Iowa good for him as Iowa weaknesses—among emerge as the one helped bring his continued. He has
crowded field of illustrated the clear independents gave caucuses and a long with its large young Democrats, alternative to Messrs. opponent down but become almost an
Republican foes, advantages of him his best chance stretch in the lower contingent of her party's active Trump and Cruz, and didn't launch Mr. afterthought, raising
ensuring that the having a clear, to break through, he half of the polls, but friendly evangelical liberal base and to clear others from Christie, who ended questions about how
anti-Trump GOP simple populist did it. He showed showed he can still voters, so he merely those who worry the establishment the night saying he long he can continue.
vote will be divided message in this year that camping out the play a big role in the needed to stay about her lane. But a shaky would reconsider the
at least through the of anxiety and anger. old-fashioned way establishment lane. competitive while honesty—remain debate performance fate of his campaign.
South Carolina still works. waiting to move deeply embedded. helped undermine his
primary. South. And he did. chance to do that.

Kasich’s New Hampshire Bet Pays Off

Ohio governor places paigns, said the Ohio governor
got what his underfunded
second in the state he campaign required with Tues-
made the focal point day’s results, with his second-
place finish behind Donald
of his early campaign Trump.
“What we needed tonight
BY REID J. EPSTEIN was what we got, affirmation
that John Kasich is a viable
CONCORD, N.H.—Ohio Gov. candidate for president of the
John Kasich accomplished his United States,” Mr. Rath said.
JIM COLE/ASSOCIATED PRESS
Mr. Kasich could do well, along
with the March 8 primary in
Michigan, where moderate Re-
publicans have a history of
winning elections. Mr. Kasich
will travel to Michigan next
week.
“We have to extend this
fight to the 15th of March,”
when Ohio holds a winner-
take-all contest, Mr. Rath said.

mission in New Hampshire—
he didn’t “get smoked.”
Now, the test is whether he
can convince an angry Repub-
lican electorate elsewhere to
embrace his message of com-
promise and inclusiveness.
Mr. Kasich’s second-place
finish in the Republican pri-
mary was powered by inde-
pendent voters and centrist
Republicans who don’t exist in
large numbers elsewhere—es-
pecially in states that only al-
low registered party members
to participate in their prima-
ries and caucuses.
“We will end up in the Mid-
Ohio Gov. John Kasich at his primary night campaign rally in Concord, N.H., on Tuesday.
west, and you just wait,”
Mr. Kasich said. “There’s so
much going to happen; if you
don’t have a seat belt, go get
one.”
But Mr. Kasich lacks the
strong organization in other
states that he built while con-
ducting 106 town-hall meet-
The GOP electorates in “We don’t have to win every
South Carolina, which is the delegate in the South, we just
next primary, and the South- have to do well enough.”
ern states that vote March 1 Borrowing a line from
are far more conservative than Scripture, Mr. Kasich said he
New Hampshire’s. But Mr. hopes his success is evidence
Rath expressed confidence that an optimistic campaign
that Mr. Kasich, who in New can succeed.
Hampshire had trumpeted en- “Maybe, just maybe, we are
ings in New Hampshire. He ing the Iran nuclear deal and dorsements from the liberal turning the page on a dark
also will face more voters who pressing for reforms of cam- editorial pages of the New part of American politics be-
will be skeptical of the ele- paign finance and redistricting York Times and Boston Globe, cause tonight the light over-
ments of his record and plat- rules. would get a fair shake from came the darkness.
form that don’t sit well with Speaking to reporters on more conservative Republican “There’s something that’s
many conservatives—accept- the floor of the Kasich primary voters. going on that I’m not sure that
ing Medicaid expansion in night party in Concord, top He also cited Massachusetts anyone can understand.
Ohio under the Affordable Kasich aide Tom Rath, a vet- and Vermont, which also vote There’s magic in the air with
Care Act, calling for maintain- eran of New Hampshire cam- March 1, as states where this campaign.”

TRUMP bio was trailing Mr. Kasich,

Sen. Ted Cruz of Texas—win-
ner of the Iowa caucuses—and
former Florida Gov. Jeb Bush,
ing to be the mainstream GOP
alternative to Mr. Trump and
Mr. Cruz. That portends a
lengthy and difficult race be-
full-court press even though
he has only slim political or-
ganization beyond New Hamp-
shire.
Iowa and are projected to be
65% in South Carolina. New
Hampshire’s voters also are
less conservative: 29% of pri-
ger Games,” a fight for politi-
cal life among several candi-
dates.
That battle for second and
Continued from Page One a former mentor whose own cause the longer there are at “We take our snow boots mary voters said they were third place intensified in large
Jersey to consider his next faltering campaign may get least three viable candidates off and put our flip-flops on,” “very conservative”—com- part because Mr. Rubio
steps in the presidential race. some breathing room from the amassing delegates, the Mr. Kasich told reporters out- pared with 40% in Iowa and seemed to lose momentum af-
“We’re going to take a deep New Hampshire results. harder it becomes for anyone side a polling site in Concord. 36% in South Carolina. ter a fumbling debate perfor-
breath and see what the re- Mr. Rubio had been count- to clinch the nomination. “We’re going to go to South Exit polls showed Mr. mance Saturday that fueled
sults are tonight,” he said. ing on his surprisingly strong Mr. Trump’s victory decla- Carolina. We’ll go tonight.” Trump winning among almost his rivals’ claims that he is too
Lou DeRosa, an energy con- third-place finish in Iowa to ration by the Associated Press To be sure, New Hampshire every major demographic inexperienced and ill-equipped
sultant from Hampstead, said give him a head of steam— and television networks came could drive one or more can- for the presidency.
the debate left Mr. Rubio “Marcomentum,” as his cam- so soon after the polls closed didates from the race but no The exit polls indicated a
bruised by charges that he paign has dubbed it in recent that many of his supporters one was ready to concede any-
Two-thirds of voters substantial number of late de-
was too inexperienced and ill days. Polls had shown him had yet to arrive at his victory thing over the past week of said recent debates ciding voters went to Mr. Ka-
equipped for the presidency. steadily in second place in party. intensive campaigning in the sich. He benefited from voters
“I think that Rubio got de- New Hampshire before the He hailed his win with snow-blanketed Granite State.
had been important like Sonya Bouchard, a Con-
stroyed by a little love tap in weekend debate. characteristic bombast: “We All nine candidates were to their decision. cord resident, who said she
the debate,” said Mr. De Rosa, The results bring little clar- are going to do something so scrambling to woo the many found his more upbeat cam-
who voted for Mr. Kasich. ity to the competition among good, so fast and so strong, voters—Republicans and inde- paign style appealing at a
As returns came in, Mr. Ru- GOP candidates who are seek- and the world is going to re- pendents—who were unde- group. Only among evangelical time when most candidates
spect us again—believe me.” cided until the last minute. voters did he not dominate, were attacking each other. “I
Mr. Kasich promised his According to exit polls, 46% of essentially tying Mr. Cruz for like that he’s positive,” she
supporters a tough fight GOP voters made up their their votes. Among GOP pri- said, adding that she didn’t
ahead. “If you don’t have a mind on Tuesday or in last mary voters who described decide on him until Tuesday
seat belt, go get one.” “few days.” themselves as “moderate,” Mr. morning. “I don’t like all the
Flowing Mr. Trump’s big lead belies “In New Hampshire you can Trump only narrowly beat Mr. fighting.”
skepticism about whether he throw those polls away,” said Kasich, exit polls showed. New Hampshire exit polls
with could translate his huge rally John Lyons, an 83-year-old Those voter surveys suggest that Republicans may
crowds and high poll numbers Portsmouth independent who showed New Hampshire vot- remain divided long after they
elegance. into victory in a state where even put off the decision ers were more concerned pick a nominee. More than
voters have high expectations about which party’s primary about the economy and ter- half of GOP primary voters
of contact with presidential to vote in. “People will go into rorism than they were about said they would be disap-
candidates. that booth, and they won’t immigration, but among those pointed if either Messrs. Cruz
The near-deadlock among mean a thing. People are dif- who were worried about im- or Rubio claim the nomina-
the next tier of candidates ferent here in New Hamp- migration, Mr. Trump gar- tion. They split almost evenly
means that a robust competi- shire.” nered the biggest share of the on whether they would be sat-
tion among Messrs. Rubio, Ka- The GOP electorate is in- vote. isfied or dissatisfied by Mr.
sich and other candidates will deed distinctive. In New New Hampshire polls were Trump becoming the nominee.
continue into the next primary Hampshire, exit polls showed unanimous in predicting a —Paul Overberg, Heather
contests on terrain less hospi- that 25% of voters said they Trump victory, but the battle Haddon, Colleen McCain
table to those more-establish- are evangelicals or born-again among the rest of the field Nelson and Reid J. Epstein
ment oriented candidates. Christians; they were 64% in came to resemble “The Hun- contributed to this article.
The nominating contest
now moves to deeply conser-
vative Southern states more
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Next up are South Carolina
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JOE RAEDLE/GETTY IMAGES

WASHINGTON, D.C.: Tysons Corner Center bama, Georgia and Arkansas.

Mr. Kasich, the candidate
who diverges most often from
conservative orthodoxy, is un-
daunted by the prospect. He
has three events scheduled in
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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. * * * * * * Wednesday, February 10, 2016 | A5
CHIP SOMODEVILLA/GETTY IMAGES

CARLO ALLEGRI/REUTERS
Jeb Bush steps off his campaign bus outside a polling place in Manchester, N.H., on Tuesday. Florida Sen. Marco Rubio smiles as he greets supporters Tuesday on voting day in Windham, N.H.

Bush Wins Some Time Back to Drawing Board

After New Hampshire
BY BETH REINHARD
HILTON HEAD, S.C.—For-
mer Florida Gov. Jeb Bush’s
virtual tie for third place in
the New Hampshire primary
Tuesday is the moment he has
been waiting for to revive a
struggling campaign.
Campaign advisers said he
needed to exceed expectations
and beat his home-state rival,
Sen. Marco Rubio, and after
months of slumping poll num-
bers, he did. Mr. Rubio was in
fifth place, roughly a point be-
hind Mr. Bush and Texas Sen.
Ted Cruz.
Mr. Bush now heads to
South Carolina with some
wind at his back, a political or-
ganization on the ground and
some potentially powerful sur-
rogates on hand.
“This campaign is not
dead—we’re going on to South
Carolina,” Mr. Bush told sup-
porters in New Hampshire.
With a headquarters in Co-
lumbia and three field offices
across the state, his campaign
says it has already contacted
more than 500,000 voters and
knocked on more than 50,000
doors.
The super PAC backing his
campaign, Right to Rise USA,
has spent $10 million in the
state and is currently airing
two ads.
One spot features Mr.
Bush’s brother, former Presi-
dent George W. Bush, who is
expected to join him on the
campaign trail in the run-up to
the Feb. 20 primary and who
remains popular in the state.
“The first job of the presi-
dent is to protect America,”
the former president says in
the ad. “Experience and judg-
ment count in the Oval Office.”
The other leading surrogate
for Mr. Bush in South Carolina
will be Sen. Lindsey Graham,
one of the most outspoken na-
tional-security hawks in Con-
gress. Mr. Graham, once a ri-
val, quit the presidential
campaign in December and en-
dorsed Mr. Bush.
The TV ad featuring the for-
mer president and Mr. Gra-
ham’s endorsement lay the
groundwork for what is ex-
pected to be the central theme
of Mr. Bush’s campaign in this
military-heavy state: national
security.
More than 1 out of 5 Repub-
lican primary voters in 2012
described themselves as a mil-
itary veteran, according to exit
polls.
Knocking down Ohio Gov.
John Kasich, who finished
ahead of Mr. Bush in New
Hampshire, now looms as a
priority, and Mr. Bush has al-
ready started attacking his re-
cord on military spending. And
Right to Rise USA, his friendly
super PAC, still had $60 mil-
lion in the bank at the end of
December, more than enough
to finance an assault.
But on two other issues, Mr.
Bush is at odds with many
South Carolina Republicans.
He has supported the Common
Core academic standards and a
path to legal status for illegal
immigrants.
Mr. Bush hits the ground
Wednesday with three events
in the state.
For Florida Sen. Rubio
BY PATRICK O’CONNOR
MANCHESTER, N.H.—Flor-
ida Sen. Marco Rubio barreled
into the Granite State with
more momentum than his ri-
vals. He leaves dogged by
questions about the viability of
his campaign.
At one point last week, the
New Hampshire Republican
primary looked like a chance
for Mr. Rubio to assert himself
as the clear alternative to busi-
nessman Donald Trump and
Texas Sen. Ted Cruz. But that
ended with a shaky debate per-
formance on Saturday night.
Mr. Rubio now faces mount-
ing questions about his sincer-
ity and his readiness to be
president, as well as the same
financial strains confronting
his rivals. The 44-year-old
Florida senator needs to ad-
dress those concerns quickly if
he hopes to rejoin the top tier
of GOP contenders in time for
a series of potentially decisive
contests in early March.
The rebuilding effort will
start Wednesday when Mr. Ru-
bio heads to South Carolina for
a series of campaign stops in
the next state on the nominat-
ing calendar. He will get a
chance to rehabilitate his im-
age at a weekend debate, and
he can expect many of the
same attacks as those leveled
by New Jersey Gov. Chris
Christie in New Hampshire,
who pointedly charged that he
is overly reliant on talking
points and hasn’t accom-
plished anything meaningful in
his five years in the Senate.
Money will be a major con-
cern. Like many of his rivals,
Mr. Rubio’s campaign was rely-
ing on a strong finish in New
Hampshire to juice his fund-
raising. Some of his top donors
expected well-heeled support-
ers of many of his closest ri-
vals, including Mr. Christie and
former Florida Gov. Jeb Bush,
to jump ship and support the
senator. But those hopes were
dashed by Tuesday’s results.
The bigger concern for Mr.
Rubio is that Mr. Christie cast
a harsh light on the senator’s
reluctance to stray from his
standard stump speech and the
strict message discipline that
drove him to repeat a scripted
attack about President Barack
Obama four times at Satur-
day’s debate. In the days fol-
lowing that performance, he
refused to move off that mes-
sage.
In Iowa and New Hamp-
shire, Mr. Rubio performed
best among voters who put a
premium on nominating the
candidate with the best chance
of winning in November. But
with the race moving to states
dominated by tea-party activ-
ists, evangelical Christians and
other conservatives, Mr. Rubio
may find himself in an ideolog-
ical tug of war with Mr. Cruz.
On Tuesday, Mr. Rubio
claimed responsibility for the
lackluster finish, an early sign
he is eager to move beyond the
New Hampshire result. “I know
many people are disap-
pointed,” he told supporters in
downtown Manchester. “I did
not do well on Saturday night,
so listen to this: That will
never happen again.”

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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
A6 | Wednesday, February 10, 2016 * ***** THE WALL STREET JOURNAL.

PARTIES whose ideology is mistrusted

by many on the Republican
right, he did surprisingly well
among very conservative vot-
ago. So in New Hampshire, as
in Iowa, there were signs that
the core of Trump voters are
very loyal, but also hints that
Continued from Page One ers. He did well among all age he may not have succeeded in
on. The names Kasich, Cruz, groups except, perhaps, the expanding that core as the
Rubio, Bush and Trump—and most elderly. campaign wore on.
perhaps Christie as well—are He continues to do best A similar dynamic emerges
linked for at least several among GOP voters with less among the Democrats as the
more weeks. than a college education, and New Hampshire dust settles.

ANDREW LAMBERSON FOR THE WALL STREET JOURNAL

Among Democrats, Mr.
Sanders has humbled the once
inevitable candidate and
emerged with two attributes
so many other upstart chal-
lengers haven’t had: a natural
base of support and a big
bank account.
So these races aren’t end-
ing soon.
Of course, history can’t be
entirely ignored, especially
when it comes to Iowa and
New Hampshire. No candidate
has lost both states and gone
on to win a party’s nomina-
tion since Bill Clinton in 1992.
That means Sen. Ted Cruz,
who won Iowa, and Mr.
Trump, after winning New
Hampshire, have an advan-
tage, and Mr. Sanders and
Mrs. Clinton are both in the
People leave the voting booth after casting ballots in Newport, N.H., during the primary on Tuesday.
game, if history is any guide.
But this is an election cycle
that already has shown little
to no respect for traditions
and precedents, and there’s no
reason to think traditional or-
der will be restored now. It’s
better at this point to look at
what New Hampshire told us
about relative strengths and
vulnerabilities in each field.
Those who continue to
doubt Mr. Trump’s strength
will need to look long and
soars among those who say Exit polls showed little move-
immigration is their top issue, ment among Democratic vot-
but what is most striking is ers despite the furious cam-
the way his support spreads paigning and a dramatic
out across the GOP electorate. debate between Mr. Sanders
And he will benefit as long as and Mrs. Clinton. There was
the non-Trump is divided little difference between those
among multiple challengers. who decided early and those
Yet here is the problem for who decided late. Mr. Sand-
Mr. Trump, and the opening ers’s support, like Mr.
for those four candidates clus- Trump’s, was solid all along.
tered just behind him: Once But the troubling finding
again in New Hampshire, he for Mr. Sanders—and the en-
didn’t do as well among late- couraging one for Mrs. Clin-
deciders than among those ton—is how much of his sup-
who made their minds up long port came from New
hard at how even his support ago. Hampshire voters who called
was across all kinds of demo- Many late-deciders indi- themselves independent. She
graphic lines in New Hamp- cated they broke for Mr. Ka- broke even among main-
shire. sich; the largest bloc of stream Democrats, and her
Exit polls showed he did Trump supporters were those candidacy hinges on the
well with moderates and con- who said they made their party’s mainstream now step-
servatives, and, for someone minds up more than a month ping up for her.

How primary voters cast their ballots Where candidates won

Exit poll results as of 11:22 p.m. EST Tuesday Size of lead by town compared with select demographics
Pct. 18-34 years old Pct. bachelor’s degree or higher
DEMOCRATIC REPUBLICAN
Share of voters PRIMARY Share of voters PRIMARY 15% 20% 25% 5% 10% 15%
2016 2016
2008 Clinton Sanders 2008 Bush Christie Cruz Kasich Rubio Trump
Gender Gender Bernie Sanders Donald Trump
Men 32 % 66 % Men 8% 8% 12% 16% 10 % 37%
Margin Margin
Women 44 55 Women 13 7 11 16 13 32
Age Age 2,000 2,000
18-29 16 83 18-29 10 5 16 11 12 37 4,000 4,000
30-44 32 66 30-44 7 5 12 12 19 35
45-64 45 53 45-64 11 9 11 18 8 35 No polling No polling
65 and older 55 44 65 and older 15 8 10 19 11 29 places places
Berlin Berlin
Education Education
College grad 43 56 College grad 12 8 11 19 12 29
No degree 31 67 No degree 9 7 12 12 10 41
Decision made Decision made
Last few days 43 51 Last few days 12 10 12 21 12 22
Before that 36 63 Before that 9 4 11 12 10 45
Gun owner Evangelical Lebanon Lebanon
Yes 28 69 Yes 10 5 23 11 13 27 Laconia Laconia
No 43 57 No 10 8 8 18 11 37
Ideology Ideology Concord Concord
Liberal 39 60 Conservative 9 7 15 11 12 36 Portsmouth Portsmouth
Mod./conserv. 37 60 Mod./liberal 13 8 4 29 8 31 Manchester Manchester
Keene Keene
Income Income
<$50K/yr. 32 65 <$50K/yr. 12 5 13 11 9 39 Nashua Nashua
$50K/yr.+ 41 58 $50K/yr.+ 11 8 11 18 12 33
25 50 75% 25 50 75% Note: Results as of 12:00 a.m. EST Wednesday.
Note: Exit polls conducted at 40 locations among 2,215 Democratic and 2,012 Republican primary voters. Results reflect preliminary weightings. Sources: U.S. Census Bureau (demographics); Associated Press (vote)
Source: National Election Pool exit polls conducted by Edison Research THE WALL STREET JOURNAL

RACE better with female voters,

people familiar with his
thinking said. In an interview
with MSNBC on the eve of the
Continued from Page One primary, Mrs. Clinton said:
it was important that candi- “Of course it would be mal-
dates have the “right experi- practice not to say, ‘OK, what
ence,” exit surveys showed. worked? What can we do bet-
Mr. Sanders, in his victory ter? What do we have to do
speech, told supporters they new and different that we
had sent a message that have to pull out?’ ”
would echo from Wall Street But Mrs. Clinton’s experi-
to Washington. “The govern- ence makes it challenging for
ment of our great country be- her to present a sweeping vi-
longs to all of the people, and sion for change, something
not just wealthy campaign for which voters have shown
contributors and their super an appetite.
PACs,” he said. Mrs. Clinton had what her
Mr. Sanders, whose win aides saw as a revealing and
Tuesday was powered by high helpful moment at a CNN fo-
turnout, predicted that result rum last week, where she was
would be repeated across the asked by a rabbi how she bal-
nation. ances the need to make a dif-
JOHN MINCHILLO/ASSOCIATED PRESS

Mrs. Clinton, who won the
New Hampshire primary in
2008, declared that, “I still
love New Hampshire and I al-
ways will.” And seeking to use
the defeat to show she is a
fighter, she promised to take
the battle to other states and
said, “It is not whether you
get knocked down that mat-
ters, it is whether you get
back up.”
Even before the primary,
Mrs. Clinton began retooling
her message and said she
would reexamine her cam-
paign strategy in hopes of
blunting Mr. Sanders’s mo-
mentum.
Mr. Sanders made deep in-
roads with voters outside the
mainstream of Democratic
politics. About 40% of those
Above, Bernie Sanders with his wife, Jane, in Concord, N.H., Tuesday night. Hillary Clinton, below, addressed supporters in Manchester.
income inequality.
Lisa Colavito, a nurse from
Concord, said she voted for
Mr. Sanders “because we
need to get the money out of
politics.” She added, “He’s a
grassroots candidate, he
stands by his word, and he’s
been consistent.”
Ms. Colavito said she
wasn’t persuaded by the pros-
pect that Mrs. Clinton could
ference in the world and the
need for humility.
She replied with a nu-
anced, spiritual and personal
explanation of the need to
practice what she called “the
discipline of gratitude.”
“So regardless of how hard
the days are, how difficult the
decisions are, be grateful,”
she said. “Be grateful for be-
sion, away from the policy- ing a human being, being part
heavy speeches she is most of the universe. Be grateful
comfortable with, where she for your limitations. Know
projects herself as an effec- that you have to reach out to
tive pragmatist, and toward a have more people be with
more lofty, visionary message. you, to support you, to advise
Mrs. Clinton’s aides, at her you. Listen to your critics, an-
election-night gathering, said swer the questions.”
that in coming weeks she Her aides are keen to find
would emphasize social-jus- ways to incorporate those
tice issues, going beyond types of thoughts into her
what they see as Mr. Sand- speeches, and over the course
BRIAN SNYDER/REUTERS

taking part in the Democratic
primary were independents,
and Mr. Sanders prevailed
among those by a command-
ing 72% to 27%, the exit polls
showed. The two candidates
split self-identified Democrats
evenly, according to the polls.
Voters were clearly recep-
tive to Mr. Sanders’s populist
message. Only 27% described
themselves as politically mod-
erate, while 69% called them-
selves liberal—a dynamic that
could change as the race
moves to states with more
centrist Democratic voters.
Asked if the economic sys-
tem in America favors the
wealthy, 90% of Democratic
voters said yes, the exit polls
showed. And by a margin of
nearly 4 to 1, voters said they
trusted Mr. Sanders more
than Mrs. Clinton to deal with
be the first female president.
“I just want a person that’s
good for the job,” she said.
Mrs. Clinton and her hus-
band, former President Bill
Clinton, had expected her to
be in a stronger position at
this point in the race, people
familiar with their thinking
said.
One person familiar with
internal discussions said that
inside the Clinton campaign,
there is debate over two
points. The first is how hard
Mrs. Clinton herself should
attack Mr. Sanders. Among
those advocating a sharper
tone is her husband, who
himself went after Mr. Sand-
ers in sharp terms last week-
end.
The second question is
whether she should reshape
the way she describes her vi-
ers’s narrower focus on eco-
nomic justice.
Next up for the Democrats
are caucuses in Nevada, a
state with more minority vot-
ers than Iowa or New Hamp-
shire. That would give Mrs.
Clinton, who has wide sup-
port in minority communities,
a chance to rebound and dem-
onstrate that she has more
broad-based national support
than the senator from Ver-
mont.
First, though, she needs to
come up with a more compel-
ling rationale for her candi-
dacy, many Clinton allies say.
While Mrs. Clinton has put
forward a mix of policy pro-
posals, her supporters say he
has yet to lay out a succinct
explanation of why she wants
to be president.
By contrast, Mr. Sanders
of the past several days, in
fits and starts, a new message
emerged.
Still, with Mrs. Clinton
having been on the national
stage for a quarter century, it
isn’t clear that voters who
has steadily gained ground needs an overarching message have been cool to her will
with a message that is appar- other than ‘I’m almost as far give her a second look.
ently resonating with young left as Bernie but not quite,’ ” Mike Perry, a resident of
voters in particular: Billion- said Douglas Schoen, a former Laconia, N.H., said Tuesday he
aires and powerful corpora- adviser to Mr. Clinton. “She planned to cast his vote for
tions are corrupting the polit- has to answer the basic ques- Mr. Sanders. “I like what he’s
ical system and making it tion of why she wants to be offering,” he said. “He wants
harder for middle-class Amer- president. So far she hasn’t to make changes, and that’s
icans to get ahead. done that.” what I want to hear.”
Now, campaign aides say, In the run-up to Tuesday’s Mr. Perry said he didn’t
Mrs. Clinton is beginning to New Hampshire balloting, want to elaborate about his
give voice to a message that both Mrs. Clinton and her feelings about Mrs. Clinton,
is more positive, personal and husband have suggested they but that he strongly believed
even spiritual, talking about are open to a course correc- she wasn’t the right candidate
concepts like gratitude and tion. for the job. “I don’t like her,”
the need to move forward in The ex-president is frus- he said. “I just don’t.”
life. trated by his wife’s slow start —Colleen McCain Nelson
“The problem is that she and unhappy she isn’t polling 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.
Economy, Security Sway Voters
NewHampshirevoters
wereeagertopush
nationinnewdirections,
exitsurveysshow
BY AARON ZITNER
Democrat Bernie Sanders
united young voters and liber-
als worried about income in-
equality. Republican Donald
Trump built a broad blue-col-
lar coalition worried about il-
legal immigration, uneasy
about terrorism and eager for
a candidate who “tells it like it
is.’’
Both men won major victo-
ries in New Hampshire, where
the electorate showed itself ea-
ger to push the nation on new
and diametrically opposed
courses, surveys of voters at
their polling places showed.
Mr. Sanders’s victory revealed
a Democratic Party eager for
more federal government in-
tervention to solve the nation’s
problems, while Mr. Trump’s
party showed itself skeptical of
Washington.
More than 40% of Demo-
cratic primary voters in New
Hampshire said the next presi-
dent should pursue an agenda
more liberal than President Ba-
rack Obama’s, and Mr. Sanders
carried 80% of that group. Mr.
Trump, by contrast, posted
large margins among those
who were “dissatisfied’’ with
the federal government and
even larger margins among
those “angry’’ at Washington.
In the Democratic race, Mr.
Sanders united his party’s
youngest voters and left wing
by calling for a “political revo-
lution’’ aimed at taxing the
wealthy and reining in Wall
Street, a contrast to the more
practical liberal goals laid out
by Mrs. Clinton.
Mr. Sanders carried 83% of
voters under age 30, as well as
two-thirds of voters who rated
themselves “very liberal,’’ pre-
liminary exit poll results
showed. Among the one-third
GOP Attention Turns to South Carolina
BY BYRON TAU
AND VALERIE BAUERLEIN
COLUMBIA, S.C.—With Iowa
and New Hampshire in the
rearview mirror, the Republi-
can presidential race now
shifts to South Carolina.
Larger and more diverse
than the first two presidential
contests, the state has a num-
ber of important constituen-
cies in a Republican primary,
including a large population of
evangelicals, military veterans,
retirees, professionals and
working-class voters. The state
also is known for an active and
influential business commu-
nity, which generally backs
business-friendly Republicans.
Most of the GOP field ar-
rives on Wednesday. Real-es-
tate developer Donald Trump
has scheduled an evening rally
at Clemson University, while
Texas Sen. Ted Cruz is ex-
pected to stop in Myrtle Beach
and Spartanburg. Florida Sen.
Marco Rubio will cross the
state, stopping in Spartanburg,
Columbia and Charleston on
Wednesday. And former Flor-
ida Gov. Jeb Bush will make
several stops along the coast.
Their arrival kicks off a sprint
to the Feb. 20th primary.
For Democrats, Nevada Contest Opens New Phase
BY PETER NICHOLAS
Next up for the Democratic
presidential candidates is Ne-
vada, the state that offers the
first real test of whether mi-
nority voters will help Hillary
Clinton stall Sen. Bernie Sand-
ers’s momentum or rally be-
hind her rival’s insurgent cam-
paign.
Hispanics and African-
Americans may account for
one-third of those who show
up for the Western state’s cau-
cuses on Feb. 20. A Sanders
victory here would expose the
first cracks in the “firewall”
the Clinton campaign says it
has built in states that are
more racially and ethnically
diverse than Iowa and New
Hampshire. Should the former
senator and secretary of state
rebound from her loss in New
Hampshire, it would buttress
her claim to being the sole
Democrat with broad national
* * * * *
New Hampshire voted Tuesday in the presidential primary. Shown, a polling site in Canterbury, N.H.
of primary voters who said
“honesty’’ was the top quality
they wanted in a nominee, Mr.
Sanders won more than 90%.
Mr. Sanders’s liberal cri de
coeur overpowered the Clinton
campaign’s argument that Mrs.
Clinton, a former first lady,
secretary of state and senator,
was the more experienced can-
didate. More Democratic pri-
mary voters said they wanted
a nominee who was “honest’’
and “cares about people like
me’’ than who said experience
and electability were the most
important qualities, and Mr.
Sanders won those groups by
big margins.
His broad coalition left only
small silver linings for Mrs.
Clinton. One was that she
nearly tied Mr. Sanders among
Democratic Party members,
even though she lost badly
among independents who cast
ballots in the primary, prelimi-
nary results showed. That sug-
gests Mrs. Clinton will be well-
Sen. Ted Cruz, right, greeted supporters at a campaign event this
month in Piedmont, S.C. The state holds the next GOP primary.
The Democratic and Repub-
lican calendars diverge after
New Hampshire. Hillary Clin-
ton and Sen. Bernie Sanders
will head to Nevada, where
they will compete in the state’s
Democratic caucus on Feb. 20.
The South Carolina Democratic
primary will be held Feb. 27,
while the Republican caucuses
in Nevada will be on Feb. 23.
Consultants generally break
the Palmetto State politically
into three distinct regions: the
support.
Clinton allies seem relieved
to be fighting on new terrain.
Rep. Luis Gutierrez (D., Ill.)
stopped at a Clinton campaign
office in east Las Vegas on
Monday, looked out at the
many Hispanic and black vol-
unteers and said: “This is what
America looks like! I like Iowa.
I like New Hampshire. But this
is what America looks like!”
Neither campaign is certain
how many people will show up
for the caucuses. In 2008,
about 120,000 Nevadans took
part, which was about 22% of
registered Democrats. The
state will send 43 delegates
and three alternates to the
Democratic nominating con-
vention in Philadelphia in July.
The Democratic contest in
Nevada will be held the same
day as the Republicans’ South
Carolina primary.
The Clinton team arrived in
Nevada in April. Aides plunged
Wednesday, February 10, 2016 | A7
Results
Pointto
40%. While his largest margins
were among lower-income vot-
ers, he carried every income
bracket.
Clinton’s
Preliminary exit poll results
also gave shape to a four-can-
didate race for second place.
Weaknesses
Independent voters, who BY AARON ZITNER
made up about 40% of the Re-
publican voter pool, favored Democrats in the first two
Mr. Trump, but Ohio Gov. John presidential nominating con-
Kasich was drawing the sec- tests have delivered a clear
ond-largest share of that message to Hillary Clinton
group. Mr. Kasich has sought about her weaknesses as a
to distinguish himself in the candidate. She isn’t considered
GOP field with a message of trustworthy, and her message
JEWEL SAMAD/AGENCE FRANCE-PRESSE/GETTY IMAGES
cooperation with Democrats of competence and experience
and allies abroad that con- isn’t sufficiently compelling.
trasted with the combative About a quarter of Iowa’s
tone of Sen. Ted Cruz of Texas Democratic caucus-goers last
and others. week said the quality they
Similarly, voters who said most wanted in a nominee was
they were ideologically “mod- honesty and trustworthiness.
erate”—about one-quarter of Among that group, voter sur-
the GOP electorate—were giv- veys showed, Mrs. Clinton won
ing a boost to Mr. Kasich, who a mere 10%.
was splitting the group with The verdict was more se-
Mr. Trump. vere in New Hampshire on
About one-quarter of GOP Tuesday. One-third of voters
primary voters said they were said they most wanted honesty
evangelical Christian or born- in a nominee, and Mrs. Clinton
again, a smaller share than in carried 5% of those voters.
positioned for the contests to Clinton improved her share most other states. Those vot- The results in part reflect
come, such as those in South- among men and among se- ers gave a boost to Mr. Cruz, a the months of controversy
ern states where Democrats niors. While the 2008 margins favorite of social conserva- Mrs. Clinton generated by us-
are not only a far larger share were strong enough to carry tives, who was splitting the ing a private email system dur-
of the electorate but more ra- her in a three-person race, group with Mr. Trump. ing her time as secretary of
cially diverse. Mrs. Clinton has they were insufficient for a Exit polls also showed in- state, questions about her fam-
posted large margins among one-on-one contest with Mr. creasing polarization in recent ily’s charitable foundation, as
African-American and Hispanic Sanders. years, with more voters identi- well as speaking fees she
Democrats in opinion polls. One prominent area of ero- fying with the ideological earned from Wall Street firms
Another positive sign for sion: Mrs. Clinton split liberal edges of their parties. Some that are a favorite target of
Mrs. Clinton was that women voters with Mr. Obama, includ- 71% of Republican primary vot- liberal Democrats.
over age 45 stuck by her, as ing those who call themselves ers described themselves as Mrs. Clinton left the Obama
did seniors of both genders. “very liberal.’’ This year, those conservative, preliminary exit administration in early 2013
Those are important groups voters favored Mr. Sanders. poll stories showed, compared with a positive image, Wall
that have a large presence in Mr. Trump’s victory in the with 53% who said so in the Street Journal/NBC News poll-
Democratic primaries. Republican race was remark- state’s 2012 primary. Among ing shows. But by last month,
Mrs. Clinton won New ably broad. In a field of more Democrats, 69% described some 40% of registered voters
Hampshire in her 2008 race than 10 major candidates, he themselves as liberals, up from viewed her unfavorably while a
for the Democratic nomina- won about one-third of women 56% during the party’s last larger share—49%—saw her in
tion, a victory that revived her and an even larger share of competitive primary in New a negative light.
prospects after a surprising, men. He carried more than Hampshire, in 2008. The results from Iowa and
third-place showing in Iowa’s one-third of all age groups ex- The share of those voters New Hampshire also signaled
caucuses to Mr. Obama and cept for seniors, where he led calling themselves “very lib- that Mrs. Clinton has yet to
former Sen. John Edwards. the field nonetheless with al- eral’’ and “very conservative’’ fashion an argument for her
This year, Mrs. Clinton held most 30% support. also rose, suggesting a sharp- candidacy as powerful as the
and built on voter groups she Mr. Trump carried college ening of each party’s ideologi- liberal vision laid out by Sen.
won in 2008. Her 44% share of graduates, and he won a par- cal edges. Bernie Sanders of Vermont. A
women was almost equal to ticularly large shares of voters —Paul Overberg self-described democratic so-
her 2008 showing, and Mrs. without college degrees, some contributed to this article. cialist, Mr. Sanders promises
to end a “corrupt’’ campaign-
finance system that he says al-
lows the wealthy and Wall
Street buy influence and rig
the economy in their favor.
Mrs. Clinton also has laid
out liberal goals, but her can-
and you ask people in the low peal among evangelicals, has a didacy also rests on her long
country what they’re having to lot riding on the state as well. experience in public life and
drink.” In a sign of the state’s impor- the argument that she would
The upstate region is known tance to his strategy, he held a make the stronger general
for its evangelical leanings, major rally in Greenville after election candidate. In New
while the state gets more po- Iowa, as most of his rivals Hampshire, however, Demo-
litically moderate moving to- headed to New Hampshire. cratic primary voters said they
ward the coast. “As you move He has a super PAC and a most wanted a nominee who
down the state, you move campaign organizing heavily was “honest’’ and “cares about
down a continuum of very con- on the ground in the state— people like me.’’
servative to moderate,” said specifically hoping to maxi- Some 60% of voters chose
Dan Tripp, a consultant in the mize turnout among the state’s one of those two qualities, exit
state now working for a super large bloc of religious voters. polls showed, and Mr. Sanders
ERIC THAYER/REUTERS
PAC supporting Mr. Cruz. Mr. Rubio also has invested
Mr. Trump leads by double heavily in South Carolina. His
digits in the handful of polls campaign and independent al-
Clinton’s candidacy
that have been done in the lies have spent $9.4 million on rests strongly on her
state. But no new polling has TV advertising in the state, ac-
taken place since mid-January cording to NBC News. That is
long experience in
—before voters in Iowa and surpassed only by the super public life.
New Hampshire had their say. PAC supporting Mr. Bush,
John Vassallo, a retired which has spent $10.3 million
upstate area around Greenville computer programmer who in the state’s four major media carried both groups by lop-
and Spartanburg, the midlands lives in Myrtle Beach, has gone markets. The Bush campaign sided margins.
region around the state’s capi- to two Trump rallies and pre- had long seen South Carolina By contrast, 38% said expe-
tal of Columbia, and the dicts that the celebrity busi- as a firewall against the insur- rience or the ability to win in
coastal regions. nessman will win South Caro- gent Mr. Trump and Mr. Cruz. November was the most im-
“There’s an old joke in lina, where he has tapped into South Carolina Republican portant quality in a nominee.
South Carolina,” said Walter the prevailing mood of eco- Chairman Matt Moore said the Mrs. Clinton won those groups
Whetsell, a longtime political nomic uncertainty. “Middle state echoes the rest of the by large margins, exit polls
consultant in the state who is America is suffering,” he said. country in that there’s “a deep showed.
currently unaffiliated with any “Every single person I know is vein of discontent here over Mr. Sanders’s message is ex-
campaign. “You ask people supporting Trump.” economic opportunity”—and citing his core supporters
from the upstate where they Mr. Cruz, who won the Iowa there is big interest in candi- more than Mrs. Clinton is en-
go to church, you ask people in caucuses on the strength of his dates running as outsiders like ergizing her base. She carried
the midlands where they work, turnout operation and his ap- Mr. Trump and Mr. Cruz. her strongest voting group,
women age 45 and older, by
seven percentage points in
New Hampshire, 53% to 46%,
exit polls showed.
Mr. Sanders, by contrast,
posted prohibitively large mar-
into the painstaking work of “We had to be prudent with support of prominent Nevada gins among the groups that
culling voter lists. They set up funding state operations, and party officials and Hispanic most responded to his mes-
Spanish-language training ses- once it became clear that the activists. Her state campaign sage. Some three-quarters of
sions and mock caucuses so campaign would be well- team includes people with Democratic primary voters un-
Hispanic supporters would funded, then we were able to deep roots in Nevada politics. der age 45 backed him in New
know what to expect at caucus expand into other states,” said Rory Reid, a Clinton sup- Hampshire, including 83% of
sites. In her 2008 presidential Jeff Weaver, Mr. Sanders’s porter and son of Senate Dem- voters under 30.
bid, Mrs. Clinton won 64% of campaign manager. ocratic leader Harry Reid, Young women, who many
Hispanic voters in Nevada, Eight years ago, Mrs. Clin- said: “She’s even better orga- presumed would be part of the
compared with 26% for then- ton won the popular vote but nized than she was in 2008 Clinton coalition, are instead
Sen. Barack Obama, exit polls Mr. Obama walked away with and therefore should be just as turning to Mr. Sanders. He car-
showed. more delegates. This time, her successful.” ried women under age 45 by
Mr. Sanders’s team didn’t campaign hopes to win not Mr. Sanders, meanwhile, is 40 percentage points in New
arrive until October. Since just the large cities but also the darling of young voters, Hampshire, 69% to 29%.
then, a campaign flush with remote precincts that offer a and he could benefit by rules While Iowa and New Hamp-
cash opened a dozen offices disproportionate share of del- that allow residents to register shire proved to be unexpect-
and hired more than 90 cam- egates under the state’s cau- on the day of the caucuses. edly difficult tests for Mrs.
paign workers. His campaign cus rules. Yvanna Cancela, political Clinton, the race now moves to
has been airing television ads “It’s really difficult to run director of the powerful culi- states that could prove to be
steadily in Nevada since De- up the score in one place,” nary workers union, said she friendlier terrain. The first
cember, making use of Span- said the Clinton campaign’s was at a bar in Las Vegas re- contests took place in two of
ish-language TV and radio. Nevada director, Emmy Ruiz. cently and noticed that a the most liberal and least ra-
The Clinton campaign, for “We need to have a strong young man sitting next to her cially diverse states in the na-
its part, won’t say how many showing in these [Las Vegas was doodling on his cocktail tion. Next come states with
paid staff it has in the state. It caucus sites], but also need to napkin. “Bernie Sanders is the larger shares of minority and
has fewer offices but also have a strong showing in Sum- future,” he had written. centrist voters, who in opinion
makes use of volunteers’ erlin and Pahrump and Elko.” —Paul Overberg surveys have favored Mrs.
homes, aides said. Mrs. Clinton has won the contributed to this article. Clinton.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A8 | Wednesday, February 10, 2016
Pope to Stand With Migrants on Border
Francis’ trip to Mexico
will include Mass on
Texas border, a zone of
campaign contention
BY DUDLEY ALTHAUS
AND JOSÉ DE CÓRDOBA
MEXICO CITY—Pope Francis
arrives in Mexico on Friday for
a six-day visit that will end
with a highly symbolic and po-
tentially controversial act: the
pontiff taking a stand on the
fortified U.S. border to show
solidarity with the migrants
trying to cross it.
The pope’s gesture comes at
the height of a rancorous U.S.
political season in which immi-
gration has become a hot-but-
ton issue.
Two leading candidates for
the Republican nomination,
Donald Trump and Ted Cruz,
have vowed to build a wall
along the nearly 2,000 miles of
the U.S.-Mexican border. Mr.
Trump has said he would forci-
bly deport up to 11 million ille-
gal migrants from the U.S.
The pope will hold a cross-
border Mass in Ciudad
Juárez on Feb. 17 just 90 yards
from the U.S. frontier. Some
200,000 people are expected to
attend on the Mexican side and
an additional 50,000 across the
Rio Grande in Texas.
“This is one community de-
spite the fence,” Vatican
spokesman Federico Lombardi
told reporters on Tuesday. “I
think it will be moving to see
this single community even
though it is located on two
sides of the border.”
Before the Mass, the pope is
expected to ride to the border
line and offer a prayer for mi-
grants, including those fleeing
war in the Middle East and es-
caping deadly street gangs in
Central America.
The son of Italian immi-
grants to Argentina, the pope
has been an outspoken advo-
cate for migrant rights during
his three years as leader of the
Volunteers in Ciudad Juárez, Mexico, across the border from El Paso, Texas, on Sunday rehearsed the welcome they are preparing for Pope Francis’ visit next week.
world’s one billion Catholics.
While Mr. Trump has caused
controversy with his comments
that Mexicans—including “rap-
ists”—are crossing the border
in droves, the U.S. has actually
seen a significant decline in
people trying to sneak across
the border over the past de-
cade, down to about 330,000
last year from nearly 1.2 million
in 2005.
Yet the papal visit to Mexico
comes at a time when growing
numbers of migrants from Cen-
tral America, especially minors,
are fleeing violence in their
countries to seek refuge in the
U.S.
More than half a million
Central American migrants—
the vast majority from El Salva-
dor, Guatemala and Honduras—
were detained trying to cross
NY
WORLD NEWS
the U.S. border during the past
three years. That compares
with nearly 200,000 the previ-
ous three years. An unknown
number of migrants made it
through.
Gang violence has placed the
three countries—known collec-
tively as the Northern Trian-
gle—among the world’s deadli-
est corners. With a 72% spike in
killings last year, El Salvador
has overtaken neighboring
Honduras as the world’s most
murderous country not at war,
with a per capita homicide rate
20 times that of the U.S.
“There is an urge to flee, be-
cause of the very asphyxiation
that people feel,” said Verónica
Reyna, a psychologist with a
Catholic Church-linked group
working on violence reduction
in a gang-plagued suburb of
San Salvador.
Pope Francis’ defense
of migrants echoes that of his
predecessors, but he has given
unprecedented priority to the
topic and used more forceful
rhetoric.
In July 2013, on his first trip
outside Rome as pope, Pope
Francis traveled to the south-
ern Mediterranean island of
Lampedusa, a major entry
point for undocumented mi-
grants into Europe. There, he
condemned a “globalization of
indifference” he saw epito-
mized by the deaths of those
who have drowned on the sea
crossing from North Africa.
The church is on the front
lines of the migrant crisis from
the neighborhoods of San Sal-
vador to the U.S. border. Across
Mexico, it has long provided
GOLF
Continued from Page One
hazards.
In building the Amazon Golf
Course, outside a city reachable
only by boat or plane, Mr. Collis
and other expat Americans and
British followed the lead of ear-
lier foreigners tackling big proj-
ects in the wild. During the re-
gion’s late-19th-century rubber
boom, the monumental Amazon
Theater was erected in Manaus,
a symbol of belle-époque ex-
travagance. Iquitos got its his-
toric Iron House in 1890, assem-
bled here from sheets cast in
Europe and shipped in. Rubber
barons built lavish European-
style mansions with tiles im-
ported from Portugal. All strug-
gled to tame the vast and wild
Amazon.
The first task for Mr. Collis,
now 67 years old, was finding a
site. The owner of 24 acres of
forest about a half-hour outside
Iquitos agreed to let him build
there.
A friend, Leon Jones, was
skeptical. “I said, ‘How in the
world are you going to build a
golf course in this place? There
is nothing but jungle,’ ” recalls
Mr. Jones, an 81-year-old from
Atlanta who runs a charity for
abandoned children in Iquitos.
“He said, ‘I have a dream, Leo.’
And I said, ‘You’re crazier than
I thought.’ ”
Mr. Collis began raising
funds, collecting $350 member-
ships from about 60 people
from 16 countries as far off as
Japan. A fellow Englishman de-
signed a small but difficult
course, while Mr. Collis hired
local men to clear the jungle
with machetes. They dug water
hazards, built a clubhouse, land-
scaped with native coconut and
fruit trees and smoothed the
greens. After two years of ef-
fort, the course opened in 2006.
The euphoria of opening
wore off as the expats came
face to face with the power of
the jungle. Most golf courses re-
quire extensive irrigation. At
this one, mighty rains flooded
the greens. Many had to be ele-
vated.
Then there was the swift-
growing vegetation. “It is easy
to have the whole golf course
become a rough if you are not
careful,” said Bill Grimes, a for-
mer Indiana soybean farmer
who lives in Iquitos and was a
major investor in the course. “It
* *** THE WALL STREET JOURNAL.
shelters along the migrants’
trail.
In the central Mexican state
of Tlaxcala, the Sacred Family
migrant refuge, run by the local
parish, sits near the path of
“The Beast,” the collective
name for the freight trains that
rumble north several times a
day from Mexico’s southern
border, often with migrants
clinging to the cars.
Last year, the refuge shel-
tered about 3,000 people, the
overwhelming majority young,
single men from Honduras.
Most tell harrowing stories.
Rigoberto Montoya, 41, who ran
a vegetable stall in a market in
Tegucigalpa, believes gang
members killed his wife be-
cause she couldn’t pay rising
extortion fees and fears a simi-
lar fate. “If I go back to my
is a lot of trouble to try to keep
it carved out of the jungle.”
The denizens of that jungle
have been another chal-
lenge. Boas sometimes slither
across the fairways early in the
morning and in the cool of the
evening.
Mr. Collis recalls trimming
the rough when a dangerous
snake called a fer-de-lance
latched onto his hand. Luckily, it
didn’t release its potent venom.
Golfers are urged to watch
for tarantulas and not go too
near a marsh where alligators
live.
If players voice concern
about coming across a deadly
reptile while digging a ball out
In Iquitos, the
challenge is to avoid
the piranhas in the
water hazards.
of the rough, management is-
sues them a machete for the
round.
To Dag Walker, a writer who
grew up in Idaho but now lives
in Iquitos, the wildlife is part of
the appeal. “It is kind of exotic
to go play golf and realize you
are within a foot of a poisonous
snake and within inches if you
reach for your ball of getting
your finger bitten off by a pira-
nha” in a water hazard, he says.
Playing the course one day
recently, Margeaux DuMars, an
English teacher from South Car-
olina, decided to take a stroke
and drop a ball after slicing into
waist-high rough.
“Are you going to hold it
against me if I don’t go in
there?” she asked. “It is kind of
a creepy experience not know-
ing what you are digging
Margeaux DuMars, of South Carolina, at the Amazon Golf Course.
JOSE LUIS GONZALEZ/REUTERS
country, I will get killed, and I
don’t want to die like that,” he
said.
The Sacred Family refuge
was started by a Catholic priest
in 2010 who began sheltering
migrants in his house, and then
got help from the local bishop.
It runs on donations of food
and services from local mer-
chants and volunteers.
“The Catholic Church is try-
ing to respond to the evangeli-
cal requirement to protect the
people who are most vulnera-
ble,” said Father Elias Davila,
who runs the shelter, adding he
admired Pope Francis’ outspo-
ken stance on the issue.
“The pope comes with the
authority to speak about mi-
gration,” he said.
—Francis X. Rocca in Rome
contributed to this article.
through in that brush.”
Though small, the course has
one par-5 hole, the seventh, at
505 yards.
The greens are on the slow
side. Maintenance people cut
them twice a week with a regu-
lar lawn mower, as low as they
can, says course manager Mar-
garita Vilcarromero. That
means grass maybe half an inch
high. The course record for the
par-35 course is 32, shot by a
man from Sweden.
Early on, Mr. Collis let him-
self imagine that someone rich
like Donald Trump would want
to buy a golf course in this ex-
otic location for loads of money.
That didn’t happen. Instead, in-
vestors have dimmed their
hopes of recovering the
$200,000 they sank into the
course.
While it is popular with ex-
patriates, attracting local Peru-
vians to play has proved hard.
They find golf an odd sport, so
quiet compared with the bed-
lam of soccer games, says Ms.
Vilcarromero.
Juan Maldonado, a tour
guide in Iquitos, played once
and enjoyed it but finds its $25
course fee too expensive. “Per-
sonally, I like it,” he said. But “it
is strange to see a man from the
jungle playing golf.”
Some locals even come to
the course not to play golf but
to fish for piranhas in the water
hazards, Ms. Vilcarromero says.
“They know what golf is, but
they think that only foreigners
play.”
VIDEO
Watch a video
WSJ
.COM
about the
Amazon Golf
Course at
wsj.com/ahedvideo.
RYAN DUBE/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 10, 2016 | A9

WORLD NEWS

Zika Spreads Mental Woes Follow Ebola

To New Hot Spots BY DREW HINSHAW

UNIFICATION TOWN, Libe-

BY ANATOLY KURMANAEV room of a clinic in San Jo- ria—As Ebola fades, a mental-
AND SARA SCHAEFER MUÑOZ secito on the Venezuelan side health crisis is coming in its
of the border. She said doctors wake.
MARACAIBO, Venezuela— didn’t know what she had, At the height of the out-
Health authorities say Zika is but she bore signs of Zika. break, West African countries
spreading quickly across Co- “Now my skin feels terrible, that had no more than a room-
lombia and Venezuela, warn- prickly, and I’m getting bumps ful of doctors and too few
ing that the two countries’ po- on my arms and my face— nurses threw thousands of or-
rous border region could be see?” she said, pointing to a dinary people—taxi drivers,
the next hot spot after Brazil pink patch on her face. “I’m so accountants and college stu-
for the mosquito-borne virus. scared. I’ve seen pictures on dents among them—onto the
Infectious-disease special- TV of those babies born with front lines.
ists say there are at least tens small brains.” Now, many of the Ebola
of thousands of cases across Colombian health authori- fighters are battling their own,

AHMED JALLANZO/EPA FOR THE WALL STREET JOURNAL

the two countries, which have ties have confirmed more than quieter afflictions. Alcoholism,
a population of 80 million 20,000 cases of Zika. But they depression and drug addiction
people and together are three estimate there are 100,000 are raging, health officials say,
times the size of Texas. cases, saying they believe in countries that have even
The 1,450-mile-long border many infected with the virus fewer psychiatrists than doc-
has become of particular in- haven't been diagnosed. Ex- tors.
terest to health authorities, trapolating from current rates, Their ranks include Anthony
who say the virus is acute in they estimate the number of Dingay, a 30-year-old former
the Colombian border city of infected persons will grow to child soldier who signed up in
Cúcuta and flourishing in a as many as 700,000 toward 2014 to bury the bodies of Eb-
string of towns and cities the end of the year. ola victims in coastal Liberia’s
stretching north across Adding to the anxiety is the chest-high grass and mud.
steamy, swampy cattle fields breakdown in Venezuela’s Three months into the job, he
and hamlets to Venezuela’s health system, which is helped inter a body bag con-
second-largest city, Maracaibo, starved for medicine and sup- taining his 2-year-old daughter Anthony Dingay, left, and Matthew Kruah interred their relatives while working as ‘burial boys.’
near the Caribbean coast. plies amid the country’s eco- Kumba.
The arrival here of the vi- nomic meltdown. Venezuela These days, like hundreds of tion of four million, according Many fought in the war as following March, Messrs. Din-
rus, which produces generally stopped publishing weekly sta- other so-called burial boys, he to the health ministry. The child soldiers, including gay and Kruah spent days lum-
mild symptoms but may be tistics on infectious diseases no longer spends his days mental-health wing of the Li- Messrs. Dingay and Kruah. bering into the homes of
linked to a rare neurological in 2014, leaving Colombian dressed in hazmat clothing, re- berian health ministry has just When work burying Ebola neighbors they knew, to lift
disorder and to babies born health authorities only able to moving the dead. two staffers on payroll. victims became available, the their remains. Soon they were
with undersized heads, is scar- speculate about how serious Instead, Mr. Dingay sleeps It is an unsettling postscript two saw it as possibly their drinking before work. Often,
ing people as it has in Brazil, Zika is across the border. in a church, screams in his to an epidemic that was meant only chance to secure a sala- they were drunk, they said,
where as many as 1.5 million “Mosquitoes do not respect sleep and worries he might be to leave behind an army of ried job. A year later, Mr. while they put on their biohaz-
people may be infected. international boundaries,” Fer- somehow responsible for his newly trained health workers. Kruah finds it difficult to fo- ard suits. Mr. Dingay wonders
Dairy Varela, 19, four nando Ruíz, Colombia vice min- daughter’s death. By day, he Instead, large numbers of that cus. Mr. Dingay said he can’t if he somehow carried the vi-
months pregnant, described ister of health, said last week. sells sand and sometimes crew are too shaken to work. shake the image of his daugh- rus home.
feeling chills and aches as she —Sheyla Urdaneta pawns his clothes to buy cheap “They all lost somebody ter before she died. In October, his daughter
sat on Friday in the waiting contributed to this article. rum and Italian White, as her- close to them,” said Janice Liberia can hardly attend to died. “Some people started
oin is called here. He left Cooper, project lead for the saying I’m playing with this vi-
home, he says, to give his fam-
ily some relief.
nonprofit Carter Center’s men-
tal-health program in Liberia,
Survivors were left rus so I’m the one that gave it
to her,” he said. “I dream
“They didn’t tell us at the which is looking to put hospi- to grieve in an area about her. When I’m sitting,
end of this job, you people will
get crazy,” said Matthew
tal staff through basic mental-
health crash courses.
with few mental- eating, I can picture her face.”
A few months later, the two
Kruah, a companion in his Even before Ebola, Liberia health professionals. men traded their homes for
MARTIN MEJIA/ASSOCIATED PRESS

drinking and drug abuse who numbered among the world’s the churchyard. That is about
buried his father during his most traumatized nations. the only place for them to go,
own time on the graveyard Fourteen years of conflict in these wounds. Virtually no their burial-team supervisor,
crews. Liberia left 250,000 dead and clinic in the country stocks an- John D. Johnson, figured.
Ebola killed some 11,000 many survivors homeless. A tidepressants. Liberia’s only “I really want to see them
West Africans, but it also left 2011 study in Liberia’s Nimba mental-health pharmacist, Jo- doing better,” said Mr. John-
survivors to grieve in an area County found 40% of its seph Quoi, often runs out. son, who admits to his own
with very few mental-health 500,000 people exhibited “Mental health has fallen by problems: “If I don’t drink, I
professionals. Liberia has just symptoms of post-traumatic the wayside,” he said. will have some kind of sleep-
A health worker fumigated a cemetery in Lima, Peru, on Tuesday. one psychiatrist for a popula- stress disorder. From August 2014 to the less night.”

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A10 | Wednesday, February 10, 2016 * * THE WALL STREET JOURNAL.

WORLD NEWS

Saudi Troop Offer in Syria Roils Mideast

Riyadh sees much at Saudi Arabia has long accused
of meddling in Arab affairs
stake domestically on through its proxy forces.
who comes out on top Iran has strongly backed
Mr. Assad, whose Alawite sect
in the conflict is linked to the Shiite branch
of Islam predominant in Iran,
Saudi Arabia pressed its of- while Saudi Arabia is a leader
fer to send troops to fight Is- in the Sunni Muslim world.
lamic State in Syria while Tur- “We cannot accept Iranian
key asked for NATO ships to hegemony in Syria,” says Jamal
help stem the flow of refugees Khashoggi, a Saudi journalist
into Europe, as the numbers and political commentator. “If
fleeing the latest violence Bashar wins in Syria that means
around Syria’s biggest city Syria is going to be an Iranian
mounted. Syria with Russian bases it in.
That is not a good recipe for us,
By Margherita strategically speaking.”
Stancati in Dubai and The possible deployment of
AMER ALMOHIBANY/AGENCE FRANCE-PRESSE/GETTY IMAGES

Ahmed Al Omran in Saudi forces to Syria would, in

Riyadh, Saudi Arabia theory, focus strictly on fight-
ing Islamic State—just as Rus-
After the suspension of sia says its intervention in
U.N.-mediated peace talks in Syria is solely to help the Assad
Geneva last week, Saudi Arabia regime fight “terrorists.”
publicly offered to send spe- But such intervention could
cial-operations ground forces alter the conflict in ways that
to support the U.S.-led, anti-Is- some Saudis hope could pave
lamic State coalition, which the way for rebels to push Mr.
now relies mainly on airstrikes. Assad from power.
The recent advances made Russian President Vladimir
by forces supporting Syrian Putin often lumps Islamic
President Bashar al-Assad— State with various Syrian rebel
whom the Saudis oppose— groups, including those backed
around the city of Aleppo have A Syrian opposition fighter fired a machine gun at government forces from a rebel bastion east of the capital, Damascus, on Tuesday. by the West and its allies.
added urgency to the Saudi of- In the same way, Islamic
fer. It comes despite the risk of vessels to enter Greek waters. targets,” an allegation Moscow military exercise to be held in the five-year Syrian war. State “and Assad are often de-
directly confronting Iran and French officials said putting has repeatedly denied. the north of the country in the Saudi Arabia sees Syria’s fu- scribed as two faces of the same
Russia, Mr. Assad’s allies, and NATO vessels there could actu- Aid workers said the num- coming days. ture as key to its own national coin by both Saudi officials and
on top of messy entanglements ally encourage more migrants ber of people who have moved The International Institute security. Islamic State, also the Saudi public at large,” said
elsewhere, in a clear sign of to attempt the crossing, know- into camps on the Syrian side for Strategic Studies estimates known as Daesh, has claimed re- Fahad Nazer, a former political
how much the kingdom be- ing that NATO would be of the border with Turkey in that Saudi Arabia has about sponsibility for a series of analyst at the Saudi Embassy in
lieves it has at stake. obliged to try to rescue them if recent days has doubled to 227,000 active troops, includ- deadly bombings in the kingdom Washington, now at JTG Inc., a
The request from Turkey, they ran into trouble. 60,000, the majority of the ing navy and air defense, com- over the past year. The extrem- Virginia-based analysis and in-
another U.S. ally, for its North Pressures are building, how- newcomers being women and pared with more than 500,000 ist group has repeatedly encour- telligence company.
Atlantic Treaty Organization ever. Turkish Foreign Minister children. The U.N. said on for Iran, including the elite aged Saudis to revolt. Riyadh has made it clear
partners to send patrol boats Mevlut Cavusoglu said that the Tuesday that more than Revolutionary Guard Corps. “The idea is to defeat that any ground intervention
to catch or deter smugglers latest fighting in northern 150,000 people could soon be Such an initiative would Daesh. The question is: ‘Who would need Washington’s
transporting migrants from Syria could force up to one uprooted from Aleppo. help Saudi Arabia reaffirm its will replace Daesh?’ ” said backing. U.S. officials have ten-
Turkey to Greece was likely to million more Syrians to flee. Saudi special forces are al- leadership role in the region, Saud al-Tamamy, a professor tatively welcomed the Saudi
be discussed by defense minis- Almost 2.5 million have al- ready engaged in neighboring as rival Iran emerges from its of political theory at Riyadh’s offer, but also said they need
ters Wednesday in Brussels. ready sought shelter in Turkey. Yemen, but Saudi officials say long isolation following last King Saud University. to know more about the plan
But it was already running Turkish Prime Minister Ah- they have sufficient resources year’s nuclear deal. The offer Riyadh would like to see —Dion Nissenbaum
into opposition. A senior Greek met Davutoglu urged world to engage in Syria as well—a also could be a way for Riyadh rebel groups take charge, he in Istanbul and
official said his government powers to denounce Russia for point underscored by plans for to pressure the U.S. to deepen said, rather than Assad loyalists Julian E. Barnes in Brussels
would oppose allowing Turkish “mercilessly bombing civilian a large-scale, multinational its involvement in resolving close to Syria’s ally Iran, which contributed to this article.

Russia Uses Force to Fight Terror at Home General

BY THOMAS GROVE Yunus-Bek Yevkurov, tried a
different approach, creating a
Alters Plan
MAGAS, Russia—President
Vladimir Putin says his mili-
tary action in Syria is intended
commission in 2011 for reinte-
grating Islamic State recruits
who return home. It is one of
For Mosul
in part to head off the terrorist
threat at home, especially here
in the mostly Muslim north
the few paths back to a normal
life in the north Caucasus.
But growing worries over
Offensive
Caucasus. But some residents Islamic State militants return- BY DAMIAN PALETTA
say the government’s often ing to their villages and towns AND CAROL E. LEE
heavy-handed measures are in- have caused some to wonder if
stead driving potential recruits authorities may do away with A top Pentagon official said
toward Islamic State. it and crack down on the re- a U.S.-led offensive to wrest
Roza Bogatyryova, a former gion’s faithful. control of the Iraqi city of Mo-
THOMAS GROVE/THE WALL STREET JOURNAL

police officer in Magas, capital “The commission has had sul from Islamic State won’t
of the Russian republic of In- its share of success in cutting be mounted this year, casting
gushetia, says her husband, the violence in Ingushetia,” uncertainty on a key operation
Musa Bogatyryov, was one. said Timur Akiyev, the head of in the Obama administration’s
After marrying, he adopted Russian rights group Memorial fight against the extremist
the shorter pants and longer in Ingushetia and a member of group.
beard of those who adhere to the commission. If it is elimi- The assessment, from Lt.
the strict Salafi interpretation nated or curtailed, “I don’t Gen. Vincent Stewart, director
of Islam. That caught the po- know what will be next.” of the Defense Intelligence
lice’s attention, and Ms. Mr. Yevkurov’s rhetoric Agency on Tuesday, is a depar-
Bogatyryova said her husband against those who travel to ture from White House expec-
was frequently stopped on the A man kneels following Friday prayers in a mosque in the Russian republic of Ingushetia. Syria and Iraq to fight for Is- tations that the Mosul effort
street. The police raided their lamic State has grown more would begin in the coming
house in early 2014, turning According to Russia’s Fed- there is a desire for revenge thority. In Chechnya, the combative. Recent media re- months. It also would leave a
furniture upside down in a eral Security Service, 2,400 against them,” said Grigory Kremlin picked former rebel ports say he has suggested major operation in the hands
hunt for extremist literature. Russian citizens are fighting in Shvedov, editor in chief of Akhmad Kadyrov. After his as- that those who travel abroad of President Barack Obama’s
Ms. Bogatyryova said she was the ranks of Islamic State. Caucasian Knot, a publication sassination in 2004, his son, to fight should have their citi- successor.
eventually forced from her job In Russia’s north Caucasus that tracks militancy in the re- Ramzan, a burly militia leader, zenship revoked to make sure Gen. Stewart told the Sen-
on the force. region—the epicenter of sepa- gion. “They can be brutal, was groomed for the top post. they don’t have a way back. ate Armed Services Committee
Frustrated by the harass- ratist and Islamist violence which in part pushes people As regional leader since Timur Abadiyev, part of a that the situation in parts of
ment, Mr. Bogatyryov, who since the fall of the Soviet toward militancy in Russia or 2007, the younger Mr. Kadyrov grass-roots opposition group Iraq was too unstable for the
drove for a living, sold his Union—authorities fear those in Syria and Iraq.” has doled out jobs and spread outside the Ingush city of Naz- U.S. and Iraqi forces to con-
truck to pay for a trip to Syria, recruits will eventually return Mr. Putin came to power on federal funds on major public ran, said anger at authorities duct a mission to liberate Mo-
attracted by Islamic State’s home with combat experience. a promise to bring the region works. But he has been accused is near the boiling point be- sul. His comments appeared to
message of a global caliphate In recent years, local resi- firmly under Moscow’s control. of rights violations, including cause people can’t express surprise the White House,
that would deliver justice and dents say, hundreds of men In the early 2000s he launched claims he torched the homes of their dissatisfaction with alle- where some believe retaking
punish unbelievers. have “left for the forest”— a brutal campaign to win back those believed to be relatives gations of rampant corruption Mosul soon could liberate
His journey ended there: He shorthand for joining the local the region of Chechnya, where of militants, and his men have and human-rights abuses. thousands of Iraqis and help
was killed last year in an at- insurgency made up of young separatists had delivered a hu- been implicated in cases of tor- “I myself would head off ease tensions between Iraq
tack on an airport. His body people who wish to carve an miliating defeat to federal ture, disappearances and extra- into the forest with a weapon and Turkey over the presence
was buried in Syria. Islamic state out of the region. forces in a 1994-96 war. judicial killings. Mr. Kadyrov in my hands if it weren’t for of Turkish forces in northern
“My husband went and died “There is a hatred toward The Kremlin had a strategy: denies allegations of rights my wife and children,” he said. Iraq.
there, and many more will fol- the various law-enforcement Installing a strong-armed local abuses. “I know they’d go after them “This is a longer timeline,”
low,” Ms. Bogatyryova said. agencies in the region and leader to impose central au- The leader of Ingushetia, first.” a senior administration official
said of Gen. Stewart’s remarks.
In January 2015, Gen. Lloyd
screening. But security experts insufficient privacy safeguards. Austin, head of the military’s
World worry that employees of foreign
and U.S. airports, who undergo
The Intelligence and Security
Committee, which oversees se-
Central Command, said that
the U.S. and Iraq had begun
Watch fewer checks, could in fact pose
the biggest threats to a bomb
curity services, said areas of
concern included an “inconsistent
preparations to retake Mosul,
one of Iraq’s largest cities and
being brought onto a plane. and largely incomprehensible” one that is pivotal to control-
BILLY H.C. KWOK/BLOOMBERG NEWS

—Robert Wall
HONG KONG
SOMALIA
Police and Protesters
Insider Played Role Clash in Marketplace
In Plane Bombing Protesters and police clashed
Somalia’s transport minister at a Lunar New Year celebration,
said an employee at the coun- leaving dozens injured and ar-
try’s civil aviation office aided the rested in the worst violence
bombing of a plane last week, since pro-democracy protests
reinforcing security experts’ con- rocked the city in 2014.
cern that insider attacks are Activists angered over au-
among the biggest threats to thorities’ attempts to crack
commercial flights. down on unlicensed food hawk-
For years aviation security up- ers in Mong Kok, a crowded
grades have focused on reducing working-class district in Kow-
the risk of passengers smuggling loon, battled police into early
an explosive on board, adding Tuesday.
layers of bag and passenger Acting District Commander
approach to rules governing the
use of communications data.
The report also questioned some
of the law’s more contentious
powers, such as mass collection
of data, and said adequate pri-
vacy protections were lacking.
Prime Minister David Cam-
eron late last year proposed
Rioters confronted police in the Mong Kok area of Hong Kong on draft legislation that constitutes
Tuesday, setting fires after a crackdown on food sellers. the most sweeping changes to
the investigatory powers in a
Yau Siu-kei said 23 men and one UNITED KINGDOM Western nation since Edward
woman were arrested on suspi- Snowden, the former U.S. Na-
cion of assaulting and obstruct-
Lawmakers Criticize tional Security Agency contrac-
ing officers, resisting arrest and Draft of Spy Law tor, leaked documents that cast
public disorder. Police said 48 of- A panel of lawmakers criti- an uncomfortable spotlight on
ficers were hurt by glass and cized the government’s propos- surveillance powers of the U.S.
flying objects. als for a far-reaching overhaul of and the U.K..
—Associated Press U.K. spying laws, saying it had —Alexis Flynn
ling the country’s north, by
that summer. But by the fol-
lowing month, The Wall Street
Journal reported that the Pen-
tagon had begun to temper ex-
pectations because of con-
cerns that the Iraqi army
needed more training.
The situation in Iraq wors-
ened as Islamic State ram-
paged through Anbar province
in the middle of 2015 and
briefly took the city of Ra-
madi. Iraqi forces are believed
to have retaken Ramadi, but
the situation there remains
fluid, as Gen. Stewart reiter-
ated on Tuesday. “I don’t be-
lieve that Ramadi is com-
pletely secure,” he said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Wednesday, February 10, 2016 | A11

OPINION
Explaining Bernie’s ‘Socialism’ BOOKSHELF | By Kevin F. Rennie

In the 1940s,
many West-
ern societies
as an attack on “unmet
needs.” Collect the political
rents from serving as de-
Stumping
began adopt-
ing single-
payer health
systems as a
fender of every spending in-
terest in our overcommitted
republic.
When pressed, even Bernie
In His Shadow
BUSINESS
WORLD way to ex-
pand access
admits that some additional,
unspecified “political revolu-
The Nixon Effect
By Holman W.
By Douglas E. Schoen

CONGRESSIONAL QUARTERLY/ZUMA PRESS

to the rela- tion” would be necessary be-
Jenkins, Jr.
tively few fore his socialist plans became (Encounter, 385 pages, $25.99)

things medi-
cal care at the time could do
for patients.
This was an agenda that,
for obvious reason, could ap-
peal to both consumers and
providers of health care.
We live in a different time.
If the U.S. were to embark on
a single-payer system today,
as Bernie Sanders proposes, it
would not be doing so to ex-
pand access—though that slo-
gan would still be used—but
for a very different reason: to
deny and limit care in order to
control spending.
He perfects the
strategy of denying
the funding dilemma
of the welfare state.
This agenda would be pop-
ular with neither patients nor
providers, and therefore
would be dead in the water—
as liberal authorities, from the
New York Times’s Paul Krug-
man to Henry J. Aaron of the
Brookings Institution, have
suddenly discovered an ur-
gency to point out to Demo-
cratic voters infatuated with
Bernie Sanders.
Mr. Sanders knows it too.
His socialism is farcical in a
country that can’t afford the
entitlements it already has.
The one zinger that has
found its mark during the cur-
rent campaign has been Chel-
sea Clinton’s claim that his
plan endangers Medicare,
which Mr. Sanders now brings
up constantly in order to re-
Bernie Sanders campaigning in Manchester, N.H., Feb. 8.
fute it. Mr. Sanders knows
that seniors aren’t stupid.
They vote, and if they took his
plan seriously, they would
turn out in droves to protect
Medicare from being raided
by other age groups.
Take another farcical ele-
ment of Mr. Sanders’s farcical
socialism. He tweaks Hillary
over $675,000 in speaking
fees from Goldman Sachs. Un-
mentioned by the scourge of
big money is Bill Clinton’s far
more egregious buckracking.
By the estimate of IBT Me-
dia, Mr. Clinton collected be-
tween $54 million and $141
million from governments and
arms manufacturers who had
arms-deal approvals pending
before his wife’s State Depart-
ment. His own disclosures in-
dicate at least $20 million in
speaking fees from banks and
businesses since his wife be-
gan publicly eyeing the presi-
dency.
A Washington Post investi-
gation finds a “substantial
overlap between the Clinton
political machinery and the
[charitable] foundation” and
that “many of the foundation’s
biggest donors are foreigners
who are legally barred from
giving to U.S. political candi-
dates.”
Yet all this goes unremarked
actionable in America. Mean-
while, what would a President
Bernie do in office? You al-
ready have the answer.
With the latest report of
the Social Security and Medi-
care Trustees, the programs’
unfunded liabilities, in present
value terms, are $60 trillion.
The worker-to-retiree ratio,
which was 5.0 when Medicare
by Mr. Sanders, that ferocious was created in the mid-1960s,
denouncer of monied corrup- today is 2.5, and headed for
tion. Why? For the same rea- less than 2.0 after 2030. Left
son that Bill Clinton’s reckless out of this calculation, of
influence-peddling goes uni- course, is the growing rank of
formly uncriticized inside the non-retired entitlement recipi-
Democratic Party. Because ents whom taxpayers must
that’s the price of Mr. Clinton also support.
forgetting what a Clinton presi- You don’t hear about any of
dency was all about. this from Democrats. One rea-
He enacted welfare reform. son is that Bill Clinton, the
He spoke enthusiastically of most active, ubiquitous of our
fully funded personal Social ex-presidents, has utterly
Security accounts. He specu- dropped the subject in return
lated about the possibility of for his party’s indulgence of
converting Medicare into a his fundraising that knows no
means-tested program of pri- limits, and no concern about
vate insurance vouchers. propriety or conflicts of inter-
This Bill Clinton you don’t est.
hear from anymore. One could You don’t hear much about
easily forget he’s not only the it from Republicans either.
last, but the most prominent, The Bill Clinton years may
of the once-numerous Blue leave much to be criticized,
Dog Democrats, who did not but when both parties ac-
make a profession, as their knowledged a reality, there
party does now, of ignoring was at least a chance of doing
the long-term funding di- something about it. That
lemma of the U.S. retirement ended in 2000, when fully
programs. one-fifth of Al Gore’s conven-
Mr. Sanders, far from being tion delegates were public-
a radical departure, is merely sector union representatives,
a perfection of what Demo- placed there to quash any
crats have offered since the mention of entitlement reform
Clinton era, namely denial. in the Democratic platform.
Ignore the problem. If And that suits a lot of Dem-
forced to acknowledge it, insist ocrats just fine, including
there’s no problem because the Bernie, who, for all his exotic
rich will pay. In the meantime, pretenses, is just another ma-
savage every reform proposal chine Democrat.
W
hen Richard Nixon ascended to the presidency on Jan.
20, 1969, there were more than 500,000 American
troops in Vietnam, and more than 30,000 young men
were being drafted each month. By the spring of 1972, there
were 69,000 troops left in Vietnam; the draft ended a year
later. At the start of the Nixon administration, close to 70% of
Southern black children attended all-black schools. Five years
later, the number had been reduced to 8%. In February 1972,
Nixon made his trip to China. Three months later he was in
Moscow to reduce Cold War tensions. The next year, he or-
dered that essential arms be flown to Israel as the Jewish state
fought its implacable neighbors in the Yom Kippur War.
For most presidents, even one of these accomplishments
would be a historic achievement. Nothing, however, was ever
as expected in Nixon’s long public career, as veteran Demo-
cratic consultant Douglas E. Schoen makes clear in “The
Nixon Effect.” Mr. Schoen’s
key contention is that “more
than any other politician,
Richard Nixon planted the
seeds of the polarization and
partisan warfare that character-
ize our politics today.”
An outspoken, partisan vice
president to Dwight Eisenhower
(and not yet 40 when he was
elected), Nixon showed the world a
steady hand when he guided the
government during Ike’s 1955 heart
attack and 1957 stroke. Mr. Schoen
highlights an accomplishment that has
faded from history: As Eisenhower’s vice presi-
dent, “Nixon helped lead support for the 1957 Civil Rights
Act—for which Martin Luther King Jr. wrote to thank him.”
Nixon’s pale, sweating face in his first and most important
debate with John F. Kennedy in 1960 may have cost him his
first bid for president. The day after his humiliating 1962 de-
feat for governor of California, he announced to the press and
a stunned nation: “You don’t have Nixon to kick around any-
more.” Then came the long, improbable resurrection. Nixon
stood close enough but not too close to Barry Goldwater dur-
ing his catastrophic 1964 campaign and made himself the face
of the 1966 Republican midterm comeback, which set him on
the path to his 1968 triumph.
Mr. Schoen points to Nixon’s 1968 advertising campaign
as “elevating the art of the political attack to a new level.”
The ads, he writes, “often featured ominous voice-overs and
music set against images of the unrest around the country.”
But no ad Nixon ran in 1968 was as brutal as the Daisy Girl
counting down to a nuclear explosion that Lyndon Johnson
had lobbed at Goldwater four years before. Mr. Schoen also

Three Shocks to the Political System
This column been advocating in recent
went to press years. This leaves the Republi-
before the re- can Party with some funda-
sults of the mental choices to make about
New Hamp- its economic policy. And
shire primary whatever it chooses, some
POLITICS were known, part of the GOP base will be
but regard- bitterly disappointed.
& IDEAS
less of the Second: No matter who
By William
outcome in ends up with the Democratic
A. Galston
the Granite nomination, this is no longer
State, or in Bill Clinton’s Democratic
the rest of the nominating Party, because its center of
process, three important les- gravity has shifted to the left.
sons about the condition of At the end of his presidency
our politics already stand out in 2001, self-identified moder-
in high relief. ates made up 44% of the
First: Social conservatism party, compared with 29% for
is no longer enough to sustain liberals and 25% for conserva-
the loyalty of the white work- tives. By 2015 the liberals’
ing-class voters at the heart share had risen by 16 percent-
of the Republican base. These age points, to 45%, while
voters have deeply felt griev- moderates fell by nine points
ances against the economic to 35% and conservatives by
policies they see as responsi- eight points to 17%. If Bill
ble for their declining wages Clinton were to run today on
and job security, and the al- his 1992 platform, he wouldn’t
ternatives they favor contra- win his party’s nomination,
dict the preferences of busi- and it remains to be seen
ness-oriented mainstream whether his wife can do better
conservatives. on her second try.
Working-class Americans To be sure, Hillary Clinton
are hostile to free trade and isn’t running on Bill Clinton’s
comprehensive immigration platform. Some elements of
reform. They reject plans for the change are unproblematic.
limiting government that in- She has shifted ground on so-
clude cuts in Social Security cial issues, but so has much of
and Medicare. And they are the country. She can be at-
not averse to raising taxes on tacked for coming late to the
the rich, especially the hedge- party on same-sex marriage,
fund managers that Donald but so did President Obama.
Trump often castigates. The argument that “I reached
In short, this segment of this position before you did”
the electorate is demanding rarely moves many votes.
some version of the conserva- By contrast, the former
tive, working-class populism secretary of state has mostly
that Republican intellectuals held her ground on foreign
such as Reihan Salam, Ross policy, where she is notably
Douthat and Henry Olsen have more hawkish than most Dem-
ocrats, including the presi- dreamer making promises he
dent. Fortunately for her, cannot fulfill.
Democrats usually care less Mrs. Clinton maintains that
about foreign policy than Re- she is a progressive who gets
publicans do. The exception is results—a slogan remarkably
her support for the congres- like the “reformer with re-
sional resolution that George sults” that George W. Bush
W. Bush used to launch the claimed to be after his New
Iraq war, a vote she now re- Hampshire loss to arch-re-
gards as a mistake. Her record former John McCain in 2000.
on this issue was pivotal in If Mrs. Clinton wins the nomi-
2008 but—despite Sen. Bernie nation in 2016, it will be—un-
Sanders’s strenuous effort to like her husband in 1992—de-
invoke it again—seems likely spite her economic agenda,
to prove less central this time. not because of it.
The younger millennials
who form the enthusiastic
Both parties face big core of the Sanders coalition
are a distinctive new genera-
changes from within. tion whose outlook has been
No telling where shaped partly by the Iraq war
and America’s growing diver-
this is going to end. sity but mainly by the Great
Recession and its lingering af-
termath. Many have large col-
Third—and this is the heart lege-loan debts. The jobs they
of the matter—comes the are getting after they gradu-
economy, a subject roiling ate, if they do find one, often
Democrats no less than Re- pay poorly and make little use
publicans. Mr. Sanders has of their skills. Record num-
launched a full-throated attack bers are living with their par-
on Mrs. Clinton’s center-left ents well into their 20s, and
incrementalism. Nothing less few believe that they will be
than radical economic change able to buy a home in the
sustained by a political revolu- foreseeable future.
tion will do, he insists. These millennials have no
Mr. Sanders has set the experience of a successful
terms of the debate, much as capitalist system and no
Mr. Trump has done. Mrs. memory of communism’s fail-
Clinton has responded in ure. Small wonder, then, that
three ways: by changing her as many of them look favor-
position on matters such as ably on socialism (whatever
the Trans-Pacific Partnership they think it is) as on a mar-
and the Keystone XL pipeline; ket economy. Mr. Sanders’s
by trying without notable suc- socialist creed doesn’t scare
cess to outflank the Vermont them; it inspires them in
senator to the left on financial ways that Mrs. Clinton’s bat-
regulation; and by character- tle-hardened liberal pragma-
izing him as an impractical tism cannot.
accuses Nixon of dog-whistling on race by exploiting white
voters’ fears with ads vowing to make safety from violence
“the first civil right” as photos of urban riots appeared on
the screen. Yet nothing Nixon said on race in 1968 matched
Robert Kennedy’s incendiary accusation against rival Eugene
McCarthy during their ferocious California Democratic pri-
mary campaign that McCarthy wanted “to take 10,000 black
people [from Los Angeles] and move them to Orange
County”—his attempt to diminish McCarthy’s support
among affluent whites with the specter of urban hordes
moving into their tony suburbs.
Nixon was the master triangulator. Clinton
adopted the template while enacting welfare
reform. W. applied it to expanding Medicare.
The events of 1968, our annus horribilis, happened around
Nixon, not because of him, contrary to what Mr. Schoen ar-
gues. The war in Vietnam raged with no prospect of a satis-
factory end. The year saw a record 16,899 American casual-
ties. Martin Luther King was assassinated in April, RFK in
June. Riots felt commonplace. And college campuses were in
sustained revolt. Johnson restricted his travel to his Texas
ranch and military bases. The violent Democratic convention
in Chicago made Nixon seem like an island of tranquil compe-
tence. A union push to get blue-collar, white Democrats to
support party nominee Hubert Humphrey over segregationist
third-party Democrat George Wallace, combined with a late
gambit by LBJ to halt bombing North Vietnam in exchange for
peace negotiations, nearly scuppered Nixon’s narrow win.
Enemies, real and perceived, had always been Nixon’s con-
stant companions. The resources of the presidency and an
army of like-minded aides allowed his enemies, whose number
and power he often overestimated, to become his crippling
obsession. The Nixon White House and re-election committee
became centers of a criminal enterprise. The president, his
tapes revealed, engaged in obstruction of justice when he con-
nived to have the CIA stop the FBI’s investigation of the Wa-
tergate break-in several months before his 49-state landslide
over George McGovern in 1972. “I brought myself down,”
Nixon reluctantly admitted to David Frost in 1977. “I gave
them a sword and they stuck it in and they twisted it with rel-
ish. And I guess if I had been in their position, I’d have done
the same thing.”
In making his case, Mr. Schoen aligns himself with the
Cirque du Soleil school of history—he has to pull off sustained
contortions in each chapter of Nixon’s long career. He main-
tains, for example, that “if there is an unsung hero in the fall
of the Soviet Union, it’s Nixon.” Nonsense. Ronald Reagan’s as-
cendancy was a direct repudiation of Nixon’s policy of detente
and a reaction to the Soviet aggression that followed it.

Notable & Quotable: ‘Low-Hanging Fruit’

From the website Priceo-
nomics.com, “Should You Lit-
erally Pick the Low-Hanging
Fruit?,” Feb. 5:
When “low-hanging fruit”
became a metaphor in the
late 1960s, the majority of ap-
ple trees in the U.S. were 25-
to 30-foot tall goliaths—and
the only fruits within reach
were those that lingered on
lower branches. Today, how-
ever, the majority of apple
trees are what arborists refer
to as “dwarfs.”
For centuries, apple grow-
ers have grafted together
the roots of stronger trees
with the delicious fruits of
more productive trees to
create hybrids—trees that
combine the best of both
qualities. About a century
ago, in the early 20th cen-
tury, a team of scientists
and entomologists began
grafting apple branches onto
“dwarfing rootstocks,” creat-
ing highly productive trees
that maxed out at around 5
to 7 feet in height.
“The trend took a very
long time—about 90 years—
The political terrain Mr. Schoen knows best and praises
most is Nixon’s talent for infuriating his conservative allies
and disorienting his Democratic detractors by championing
to catch on with farmers,” get as many as 2,000 in the liberal policies—now known as the art of triangulation. Nixon
says Fazio. “Then, around the same space.” delighted in becoming an environmental activist in his first
late 1980s and early 1990s, The result of these smaller term, imposing wage and price controls in 1971, and offering a
the dwarf trees became pop- trees is that the lowest-hang- heavy-handed national health insurance program that Sen.
ular.” ing fruits are actually no Ted Kennedy later regretted rejecting. Nixon was the master
Once hesitant that the longer the easiest to pick. In triangulator. Bill Clinton adopted the template while enacting
smaller trees wouldn’t pro- fact, picking them requires welfare reform, and George W. Bush applied it to education
duce as much fruit, apple repeatedly bending over to and expanding Medicare.
growers realized dwarf trees knee-level, a maneuver that Mr. Schoen’s final chapter imagines Nixon commenting on
were actually far more prof- can prove incredibly strain- contemporary politics from that crowded polling place in the
itable. “Farmers get a higher ing on the lower back. sky. “The Republicans we’ve got today, he’d sigh, can’t talk
yield per acre,” says Heather “The ergonomics of pick- and tie their shoes at the same time.” It is as tricky today to
Faubert, of the Rhode Island ing apples have completely know what Richard Nixon might think as it was for the four
Fruit Growers Association. changed,” says Fazio. “It re- decades he starred on the stage of American politics.
“With the taller trees, you ally no longer makes sense to
could only plant about 20 go for the low-hanging fruit. Mr. Rennie is a lawyer and columnist for The Hartford Cou-
trees per acre; now, you can The phrase is irrelevant.” rant and InsideSources.com.
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
A12 | Wednesday, February 10, 2016 * **** THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Left-Right Revolt The 1934 Act Regulates Telecommunications

A
mericans keep telling pollsters they’re Which brings us to Mr. Trump and the revolt In “‘Economics-Free’ Obamanet” Communications Commission might
unhappy—or worse—with their political on the right. This is less about ideology and poli- (Information Age, Feb. 1), Gordon Cro- someday, in the future, regulate the
vitz trots out the same old and tired rates of the ISPs. Simply put, he was
leaders, and on Tuesday they proved it cies than the businessman’s political style and arguments of net-neutrality oppo- saying we just don’t like regulation.
in New Hampshire by handing Republican disgust with Wash- nents: that the net-neutrality rules And his objection was hardly the
victories to a 74-year-old so- Sanders and Trump ington. The New Yorker domi- apply 19th-century regulations to doomsday scenario so many oppo-
cialist and a blustery business- ride very different nated the field with some 34% 21st-century technologies. The Com- nents have painted.
man with no political experi- of the vote as we went to press, munications Act of 1934’s prescrip- Telecommunications are “commu-
ence. Bernie Sanders and populist uprisings. while no other candidate broke tions on “unreasonable” discrimina- nications” under the 1934 act regard-
Donald Trump are still a long into the high teens. The victory tion of services by communications less of whether they use wired or
way from the White House, but showed that, contrary to Iowa, providers are appropriately applicable wireless facilities, or engage digital or
their victories reveal parallel but very different Mr. Trump could translate polling leads into ac- to Internet service providers because analog technologies. To conclude oth-
popular revolts on the right and left. tual votes. And it showed that the ceiling in his they are the gatekeepers of the infor- erwise would be equal to saying only
mation highway. Those who truly concrete roads but not macadam
i i i support is higher than many Republicans have
know the industry understand this. roads are subject to various construc-
The uprising on the left is perhaps most sur- believed. Several years ago I spoke with an tion requirements, or that only jet air-
prising given that Democrats hold the White The businessman did especially well among officer of one of the major ISPs who craft must meet air-worthiness stan-
House, and Hillary Clinton campaigned to build voters without a college degree, but his support was responsible for regulatory and dards. Objective and reasonable
on President Obama’s record. But in New Hamp- was strong across most demographic and ideo- legislative matters. Rhetoric aside, I people will immediately realize the
shire the revolt was ideological and personal logical groups. He’s the choice of voters who like asked him what was the factual basis weakness, and more important, the
against Mrs. Clinton and the status quo. that he “tells it like it is” and think he can change for his company’s objection to net- danger of such arguments.
Mr. Obama tilted before the Iowa caucuses to- Washington. But the exit polls also showed some neutrality rules. The only answer he JAMES P. TUTHILL
ward Mrs. Clinton as his preferred successor, but signs of potential weakness. A little less than a could summon was that the Federal Lafayette, Calif.
New Hampshire shows that his Presidency has third of his voters said they liked Mr. Trump but
been a hot-house garden for nurturing progres- had reservations. And his share of voters who
sives. According to the exit polls, nearly seven said he could best handle an international crisis What More Hospitals Mean Is More Treatment
in 10 Democrats described themselves as liberal, was below his overall vote share. Regarding Eric Boehm’s “For Hospi- high-cost regions could be explained
up from 56% in 2008. Roughly a quarter de- As for the others, Mr. Trump will be happy tal Chains, Competition Is a Bitter by more frequent tests, procedures,
scribed themselves as “very liberal,” and Mr. that no clear alternative emerged. John Kasich’s Pill” (Cross Country, Jan. 30): The specialist visits and rehospitalizations
Sanders won them two to one. investment in the Granite State—100 town logic behind hospital certificate-of- due to greater availability of medical
Mr. Obama calls inequality the defining issue halls—paid off with a second-place finish. The need rules—laws that restrict hospi- capacity. Greater medical service use
of our times, and Democrats believe him. A third Ohio Governor did well among independents tals’ capital expenditures on items like didn’t register any improvements in
of Democrats said it is the most important issue and especially moderates. His challenge going beds, cardiac catheterization labs, CT patients’ five-year mortality, func-
facing the country, and about 70% of those voted forward will be that there are fewer of both of and MRI scanners—stemmed from the tional status or satisfaction.
for Mr. Sanders. those voting blocs as the primaries head to work of Dr. Milton Roemer, a health- Unfortunately, the certificate-of-
Mrs. Clinton won the New Hampshire pri- South Carolina next week and elsewhere in the services researcher at UCLA. “Roe- need regulatory regime has been co-
mer’s law” was aptly coined to de- opted by incumbent hospitals to
mary in 2008, but this year Democrats seem to South on March 1. He will have to raise money scribe the preponderance of empirical thwart the entry of upstart rivals. A
have rejected her on personal and character fast to be competitive, as well as show he can data showing that a built hospital bed more prudent solution would be to
grounds. Mr. Sanders won nine of 10 voters in win over more conservative voters. tended to be a filled hospital bed. transition hospitals and physicians
the exit polls who said that only Mr. Sanders or Jeb Bush spent heavily in the state and has In health care, increased supply of- away from fee-for-service reimburse-
neither of the two candidates were “honest and to be disappointed to finish in the mix for third ten induces its own demand. Even ment and toward global budgets. This
trustworthy.” The Clinton campaign has tried, or fourth place as we went to press. He has been though there is very little geographic would create incentives to constrain
as it always does, to plow through her email performing better in debates and has the variation in the first-time hospitaliza- capacity growth and reduce the vol-
scandals by portraying them merely as Republi- money to fight on in South Carolina, but he will tion rates for colorectal cancer, heart ume of unnecessary care while avoid-
can attacks. But even many Democrats don’t be- have to show he can beat Mr. Kasich and Marco attacks and hip fracture, Medicare pa- ing the explicit, anticompetitive ef-
lieve her anymore. Rubio to go much beyond that. tients with these conditions in higher- fects of certificate-of-need laws.
spending regions receive 60% more NATHAN PUNWANI, M.D., MPH
Mrs. Clinton now finds herself in a populist Mr. Rubio may be the most disappointed by
care than those in lower-cost locali- George Washington University
showdown she never anticipated and doesn’t Tuesday’s result because the Florida Senator ties. The increased utilization in the Washington
play to her strengths. She’s best as a machine couldn’t build on his Iowa surge and suffered
candidate of the unions, feminist volunteers and from his debate brain-freeze on Saturday.
wealthy environmentalists. Mr. Sanders is moti- More late deciders turned to other candidates,
vating the younger liberals who were also drawn and some two-thirds said that debates influ-
to Mr. Obama and who are voting for the Ver- enced their votes.
Liberal Candidates No Help to Middle Class
monter by three or more to one. Ted Cruz also failed to capitalize on his Iowa William McGurn (“It’s the Middle ble” Clinton political machine with a
The Clinton campaign will console itself victory, notably in failing to make inroads among Class, Hillary,” Main Street, Feb. 2) moderate center-left agenda, the party
that the campaign now moves to states where voters who aren’t evangelicals or very conserva- shouldn’t overestimate the intelligence is left with a choice between a candi-
the electorate will have more minorities and tive. The Texas Senator will find more fertile ter- of a middle class that can’t seem to date who brazenly insults voters’ in-
get past slogans (“Hope and Change”) telligence and one who despises the
fewer gentry liberals. And to win the nomina- ritory in the South, but his showing in New Eng-
to listen to what a candidate is actu- free-market capitalism which has pro-
tion Mr. Sanders will have to show that he can land bodes ill for winning swing states if he is ally saying. Then-Sen. Barack Obama duced the greatest engine to reduce
expand his support among minorities, espe- the GOP nominee in November. never promised to “fix” our system’s poverty the world has ever witnessed.
cially the black voters who are so important i i i problems. He promised to fundamen- JIM BARBER
in southern primaries. All of which means that New Hampshire tally change the system, something Mesa, Ariz.
The Vermont Senator’s other great obstacle hasn’t performed its traditional role of winnow- with which most Americans did not
is that many Democrats still fear that a self- ing the field as much as usual. Chris Christie will agree, yet he was re-elected. Many will Ronald Reagan’s question would
avowed socialist can’t win in November. But that find it hard to continue after his sixth-place fin- vote for Hillary Clinton because “it’s work well against Hillary Clinton who
argument becomes less damaging as it becomes ish, as will also-rans Ben Carson and Carly time” is qualification enough to elect a plans to continue President Obama’s
clearer that Mrs. Clinton has weaknesses that Fiorina. The rest have a case to fight on. But one woman. The efforts by the left to policies which have damaged the mid-
also could be fatal in the fall. As Republicans get big lesson of New Hampshire is that if the non- dumb down the electorate have suc- dle class: “Are you better off now than
ceeded beyond its wildest dreams. By you were eight years ago?”
closer to nominating the mercurial Mr. Trump, winners want to become the GOP nominee, they being unable to field a third candidate WALTER S. CICIORA
more Democrats may also conclude that even will sooner rather than later have to stop attack- with the courage to face the “inevita- Southport, Conn.
Mr. Sanders could win so why not take a chance ing each other and start educating voters about
on their true heart? Donald J. Trump.
There’s No Uncertainty About Bad Tax Policy
The Carbon Tax Budget Regarding companies like Johnson
Controls, Pfizer, etc., exiting the U.S.
ity in Yokohama, focusing on materi-
als, vehicles and health research. One

P
resident Obama rolled out his $4.1 tril- to spend more than 25% of their after-tax income through tax-related inversions (“The can assume that Apple’s investment in
lion fiscal 2017 budget proposal on Tues- on energy, while families that earn more than Obama Uncertainty Principle” by Bill Japan is being done with that over-
Archer, op-ed, Jan. 28), we need to be seas money. These are high-skill jobs
day, and the good news is that most of it $50,000 a year spend less than 10%. Mr. Obama’s
specific on the cause and solution. that produce other jobs and tax reve-
has no chance of passing. The proposal would increase in- There is no uncertainty. To compete nues. Furthermore, other developed
blueprint is nonetheless im- Robbing consumers equality. globally and grow the middle class, countries (U.K., Italy, etc.) are offering
portant as a statement of pro- of the benefit of The White House says the Congress needs to lower the corporate companies “innovation boxes”—an
gressive priorities and the di- tax would be phased in over tax rate to 15% or so. The other advan- even lower tax rate for income derived
rection a Democratic successor lower oil prices. five years and offset by trans- tage to this 15% rate would be that from intellectual property. What does
might lean. That goes in par- fer payments for low-income U.S. companies, like Apple, Microsoft, Washington offer companies besides
ticular for his proposal for a Americans. So after reducing GE, etc., would bring back much of the arrogance, bashing and indifference?
$10 a barrel tax on oil. their spendable income, Mr. Obama will gladly $2.3 trillion that has been earned and We are about 10 years behind the
The tax is notable politically because a year take credit for replacing some it. But the feds retained overseas since 2005. times in terms of a competitive corpo-
ago even Mr. Obama would not have dared to can’t possibly afford to offset the lost spending Apple has about $190 billion over- rate tax policy. Discussion of minimum
seas (about 90% of its cash). What wage and inequality are political fod-
propose it. Gasoline taxes aren’t popular, and Mr. power for the millions of middle-income families happens when a company like Apple der. Other countries want these
Obama’s levy would increase the price per gallon that would pay the levy. wants to buy an innovative new tech- higher-skilled jobs and are getting
by about 25 cents. But on his way out of town, They are already getting soaked by an 18.4 nology or innovative company? It will them through business promoting pol-
and with gas prices under $2 a gallon in much cent a gallon federal gas tax, state gas taxes that look overseas first. Likewise, it will be icies and attitudes.
of the country, the President thinks he has an average 26.5 cents, and fuel-efficiency mandates motivated to shift R&D overseas. For RAYMOND ERNST
opening. So he’s trying to grab for the govern- that raise the price of automobiles. The oil tax example, Apple is building a R&D facil- Coronado, Calif.
ment a share of the U.S. consumer windfall from would also add to the operating costs of indus-
falling oil prices. tries that would also pass those costs on to con-
And what a windfall the tax would be—about sumers, raising food and consumer prices. Iran’s Medals Show Its Communication Skills
$650 billion over 10 years, according to Robert The tax would hit U.S. energy production
I concur with your editorial Sorry, but it seems to me that
P. Murphy of the Institute for Energy Research. when it’s already reeling from lower prices. The
“Medals for U.S. Humiliation” (Feb. Iran’s awarding decorations for cap-
Mr. Obama says the tax as a way to fund about Saudis would be especially happy because the 1). The symbolism of the capture of turing two U.S. Navy craft which
$32 billion a year in new “green infrastructure.” tax would add to the woes of a U.S. industry the U.S. sailors and the broadcasting strayed into Iranian waters in the
This means more high-speed rail, bike paths, whose innovation in recent years had threatened of the pictures world-wide conveys Persian Gulf recently is a lot less
mass urban transit, and electric-car charging to displace imports. The tax is also a bad fiscal two messages to two audiences—an pointed a gesture than awarding the
stations. But even $320 billion in new green sub- tradeoff for much of the U.S., since energy has Iranian audience and a regional au- Legion of Merit to the captain of
sidies over 10 years would leave $330 billion to until recently been the revenue mainstay of such dience. The message to the Iranian the USS Vincennes, which shot down
spend on other progressive dreams. states as Texas and North Dakota. audience is that the regime is tough a noncombatant Iranian passenger
The other goal is to punish fossil-fuel produc- By the way, we hope our conservative friends and isn’t afraid of the U.S., and that airliner in the same Persian Gulf in
tion. A White House memo admits the point by note that Mr. Obama is not proposing to offset his Iran should continue on the revolu- 1988, with the loss of nearly 300
saying that one benefit is that the tax would pro- new $10 a barrel tax with other tax cuts. A “reve- tionary path set by the Grand Aya- souls.
tollah Ali Khamenei and the Revolu- MARTIN WILSON
vide “a clear incentive for private-sector innova- nue-neutral” carbon tax has become a mantra
tionary Guards. The second, more Fernandina Beach, Fla.
tion to reduce our reliance on oil.” Mr. Obama among some on the right, but progressives aren’t important message is for America’s
has been frustrated in his climate-change ambi- interested in that trade. They want a carbon tax Arab Gulf friends and allies. The As a reminder and possible future
tions because green fuels can’t compete eco- as an additional revenue source, and once a new pictures of the humiliated sailors antidote, we should remember the
nomically with oil and gas. So the oil tax is de- levy is created they will fight to repeal any in- were meant to undermine the Arab dying command of James Lawrence
signed to raise the cost of oil production while come-tax cut that conservatives offer. Gulf states’ confidence in the U.S., in 1813 aboard the USS Chesapeake
subsidizing competitors. Mr. Obama’s oil tax is one more sign of the the superpower that has been a “Don’t give up the ship.”
Only in government is this called an “incen- left’s shifting climate-change priorities. The guarantor of their national security REED M. BENET
tive” for “private-sector innovation.” It’s more greens used to favor mandates for energy effi- for decades. Birmingham, Mich.
accurate to call it a stick to punish energy ciency and reduced carbon consumption. But as America’s strange accommodation
of Iranian bellicose behavior is un-
sources Mr. Obama dislikes in order to assist that agenda has foundered on economic reality, Letters intended for publication should
dermining the faith and confidence be addressed to: The Editor, 1211 Avenue
those he favors. their new campaign is to stop as much oil and of America’s friends and allies in of the Americas, New York, NY 10036,
The White House is also dishonest about who gas production as possible. The new command the Obama administration and in or emailed to wsj.ltrs@wsj.com. Please
will pay the tax, calling it a “fee on oil paid for is to “leave it in the ground.” the U.S. itself. include your city and state. All letters
by oil companies.” Translation: It is a tax on driv- Mr. Obama’s tax is a down payment on that IHSAN ALKHATIB, J.D., PH.D. are subject to editing, and unpublished
ers collected by oil companies. Studies show that ambition, so don’t expect the oil tax proposal to Murray State University letters can be neither acknowledged nor
returned.
families that make less than $30,000 a year tend go away when his Presidency does. Murray, Ky.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
An Alternative Black History Month
By Jason L. Riley
B
lack History Month, which
began as Negro History
Week some 90 Februarys
ago, was meant to be tem-
porary. Its founder, histo-
rian Carter G. Woodson, envisioned
a time when black history would be
incorporated with American history
and no longer require separate rec-
ognition. Woodson’s optimism was
warranted.
Americans today are led by a
black president in the fourth year of
his second term. Martin Luther
King’s birthday is a national holi-
day. The likeness of Harriet Tubman
or Rosa Parks might soon grace U.S.
currency, if the majority of people
surveyed prevails. And it has been
decades since school curricula
excluded black perspectives and
accomplishments. Black History
Month’s sunset might seem long
overdue, but the celebration is too
useful politically for that to happen
anytime soon.
You won’t be hearing about
the rising black middle
class or intact two-parent
families of the 1950s.
Woodson died in 1950, a few
years before the civil-rights move-
ment found its stride. In the
post-1960s era, black leaders turned
that movement into a lucrative in-
dustry, and Black History Month
helps keep them relevant. February
is not simply about highlighting the
achievements of people like voting-
rights activist Fannie Lou Hamer or
the Buffalo Soldiers who served in
the Spanish-American War.
It is also about using racial iden-
tity to advance groupthink and to
discourage black individuality. It is
about presenting the history of
Applying to Zika the Forgotten Lessons of Ebola
By Scott Gottlieb
W
ith the Rio Olympics six
months away, Brazil is bat-
tling an outbreak of Zika
virus that has infected an estimated
1.5 million people. The infection is
linked to microcephaly, a congenital
condition in which babies are typi-
cally born with underdeveloped
brains. The World Health Organiza-
tion has declared the Zika outbreak
“a public health emergency of inter-
national concern,” and Brazil’s presi-
dent has called for a nationwide
“mega-operation” on Feb. 13 to
destroy the breeding grounds of the
Aedes aegypti mosquitoes that carry
the virus.
The fear of a world-wide explo-
sion in Zika infections carried by
Olympic attendees who return from
Brazil with the virus has all the
makings of a Hollywood disaster
movie. The 2014 Ebola pandemic
stemming from an outbreak in West
Africa showed how unprepared the
world was for biological threats.
The swift spread of the Zika virus—
which seems to have arrived in Bra-
zil from French Polynesia and has
now been identified in Europe, Asia
and all of the Americas—under-
scores how exposed we remain.
While Ebola ultimately burned
out after claiming the most vulner-
able victims, Zika’s easier transmis-
sion, and less-deadly outcome,
means it will propagate much more
widely. Ebola revealed that after
enormous investment in global
public health, we remain unpre-
pared to mobilize the basic re-
sources to isolate and contain in-
fectious diseases.
With Zika, the world has been
slow to mount a response as basic
as controlling the spread of mos-
quitoes in Brazil’s impoverished
northeast. President Dilma Rouss-
eff’s recent call for a mass mobili-
zation to eradicate the mosquitoes’
breeding grounds may be too little
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blacks as the his-
tory of their victim-
ization by whites
up to the present
day—which explains
racial disparities in
areas ranging from
school achievement
and household in-
come to rates of un-
employment, incar-
ceration and single-
parent homes.
The irony is that
black history in the
first half of the
20th century is a
history of tremen-
dous progress de-
spite overwhelming
odds. During a pe-
riod of legal dis-
crimination and vi-
olent hostility to
their advancement,
blacks managed to
make unprece-
dented gains that
have never been re-
peated. Black pov- Historian Carter
erty fell to 47%
from 87% between 1940 and 1960—
before the implementation of Great
Society programs that receive so
much credit for poverty reduction.
The percentage of black white-collar
workers quadrupled between 1940
and 1970—before the implementa-
tion of affirmative-action policies
that supposedly produced today’s
black middle class.
In New York City, the earnings of
black workers tripled between 1940
and 1950, and over the next decade
the city saw a 55% increase in the
number of black lawyers, a 56%
increase in the number of black
doctors and a 125% increase in the
number of black teachers, according
to political scientist Michael Javen
Fortner’s new book, “Black Silent
Majority.” The number of black
nurses, accountants and engineers
grew at an even faster clip over the
too late. Millions of humans already
host the virus, and it has spread far
beyond Brazil. The insecticide DDT,
as in much of the world, is banned
in Brazil and other insecticides
have proven less effective.
A newer weapon against the Zika
virus is a genetically engineered
male mosquito that passes a lethal
gene to its offspring. These mosqui-
toes have been released in high
numbers in Brazil, but the virus has
already spread to other human
Panic turns to complacency
when the threat subsides.
That’s no way to handle
potential pandemics.
hosts outside the country.
An unhappy echo of the Ebola out-
break may be at work in the response
to Zika. In 2014 promising vaccines
and therapeutics that might fight
Ebola were underwritten by interna-
tional bodies and fast-tracked by
world regulators, including the U.S.
Food and Drug Administration. But as
the threat subsided, so did the
momentum of these efforts. The most
advanced vaccine to prevent Ebola is
still at least three years from regula-
tory approval. None of the Ebola-
treatment drugs has meaningfully
advanced since the outbreak, and
even the most promising leads are
We Cut Smoking, Why Not Drug Use?
By George P. Shultz
M
edia coverage of the pri-
mary in New Hampshire
has underlined an unwel-
come and alarming fact: There is
an epidemic in the use of heroin in
New Hampshire. How come?
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
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Wednesday, February 10, 2016 | A13
OPINION
NAACP. The main priority of civil-
rights leaders today is self-preser-
vation.
Many factors could plausibly
explain black progress in the first
part of the 20th century. The post-
World War II economy was boom-
ing, and blacks were steadily in-
creasing their years of education,
which increased their levels of com-
pensation. Mass migration from the
South meant that more blacks had
access to the higher-paying jobs in
the North.
The black family was also more
stable during this period. Every
census from 1890 to 1940 shows
the black marriage rate slightly
higher than the white rate. In 1925
five out of six black children in
New York City lived with both par-
HULTON ARCHIVE/GETTY IMAGES
ents. Nationally, two out of three
black children were being raised in
two-parent homes as recently as
the early 1960s. Today, more than
70% are not.
Black nuclear families used to be
the norm. Now they are the excep-
tion. Jim Crow did less damage to
G. Woodson (1875-1950). the black family than well-inten-
tioned Great Society programs that
same period. “There are signs that discouraged work and marriage and
the Negro has begun to develop a promised more government checks
large, strong middle class,” wrote for having more children. But that
Time magazine in 1953. black history is also kept largely
You don’t hear much about this under wraps by those who have a
black history during Black History vested interest in blaming the
Month (or any other month, for that decimation of the black family on
matter) because it undercuts the slavery and discrimination.
dominant narrative pushed by the Much of what ought to be stud-
political left and accepted uncriti- ied, duplicated and celebrated in
cally by the media. The Rev. Al black history is often played down
Sharpton and the NAACP have no or willfully ignored. And so long as
use for empirical evidence of signif- the media allow civil-rights activists
icant black socioeconomic gains and liberal politicians with their
during the Jim Crow era, because own agendas to speak for all blacks,
they have spent decades insisting that won’t change.
that blacks can’t advance until
racism has been eliminated. If rac- Mr. Riley, a Manhattan Institute
ism is no longer a significant bar- senior fellow and Journal contribu-
rier to black upward mobility and tor, is the author of “Please Stop
doesn’t explain today’s racial dis- Helping Us: How Liberals Make It
parities, then blacks may have no Harder for Blacks to Succeed” (En-
use for Mr. Sharpton and the counter Books, 2014).
many years from regulatory filings. tries would use it. That is what is
In the U.S., Zika will likely confine happening with the dengue vaccine,
itself to small and isolated outbreaks, approved for use in only four coun-
largely in Florida and the Gulf Coast tries, including Brazil, and not
region, where the mosquito that widely administered.
transports the virus is most preva- One solution would be to use
lent. But that doesn’t diminish the debt instruments to amortize up-
need for a stronger global response. It front costs. Nongovernmental bod-
starts with mosquito control. But ies like the World Health Organiza-
most of all, vaccines to abate these tion could back “vaccine bonds” to
threats are essential. improve the ability to attract the fi-
Government grants can’t sustain nancing. This could provide a far
these efforts because the money is more reliable framework for financ-
usually too modest to offset the ing the purchase of enough vaccine
costs and risks of drug develop- necessary to mount an effective
ment. A market for these efforts is eradication program.
needed, one that will depend on The Gates Foundation’s effort to
sustainable funding for buying and stamp out malaria, and even the
administering the drugs and vac- WHO’s successful role in eradicat-
cines that can prevent Zika and ing smallpox, show that a galva-
other evolving biological threats. nized world can make dramatic
A vaccine to stop Zika should be gains in fighting diseases. But such
within scientific reach, given the fortitude is the exception. Instead,
recent development of a vaccine for the lesson of SARS, avian flu, swine
dengue fever, a disease with simi- flu and Ebola is that political re-
larities to Zika. In both cases, the solve and funding flourish after a
main reservoir for the virus is hu- threat has exploded—and shrivel
mans. Mosquitoes, through their once the immediate danger abates.
bite, merely carry the virus from An economic framework is needed
one infected person to a new hu- to support these efforts before
man victim. If the virus could be threats spiral out of control, and to
eliminated in people, it could be sustain them long after the immedi-
largely eliminated from circulation. ate risks subside.
The widespread use of vaccines
could eradicate many of these Dr. Gottlieb, a physician and resi-
emerging threats. But the costs of dent fellow at the American Enter-
such mass vaccination are prohibi- prise Institute, was previously a
tive. So it is generally agreed that Food and Drug Administration dep-
even if a successful vaccine existed, uty commissioner. He consults with
few of the most susceptible coun- and invests in drug companies.
Haven’t we had a war on drugs arrested. A young black child
for the past 40 years? caught with marijuana will be sent
Why hasn’t it been as effective to jail, where he will learn how to
as the war on smoking? become a real criminal.
The Surgeon General estimates Let’s decriminalize the use of
that reducing the rate of smoking drugs so that treatment centers
in the U.S.—to 18% of the popula- can work. Keep the peddling of
tion today, down from 43% immedi- drugs criminal so you can go after
ately after that office’s landmark the dealers, but let’s persuade
1964 report warning about the dan- young people not to damage them-
ger of smoking—has saved millions selves the way they’re doing with
of lives and avoided hundreds of drugs.
billions of dollars in health-care If this takes place, we can also
spending by preventing smoking- take the profit out of the drug
associated chronic diseases. As a trade and thereby pull the rug out
public-health campaign, it was rela- from under drug gangs that are
tively cheap, and the efficacy was using money and weapons from
enormous. It is preventive medi- the U.S. criminalized drug market
cine’s greatest success story. to disrupt societies to our south,
Let’s do the same thing on the especially Mexico and Central
program of drugs. They are bad for America.
people and society, so let’s cam- So let’s have an urgent effort to
paign against their use and drama- encourage people—especially young
tize to people—especially young people—to stop taking drugs. As
people—the damage they’re doing Nancy Reagan once campaigned,
to their brains and their bodies “Just say No.” That’s the way to
through the use of drugs. win the war.
We should also invest more
money and effort in treatment cen- Mr. Shultz, a former secretary of
ters so that people have a place to labor, Treasury and state, and di-
go where professional help will be rector of the Office of Management
available. At the present time, no and Budget, is a distinguished fel-
one would go because taking drugs low at Stanford University’s Hoover
is illegal and he or she would be Institution.
How Germany
Will Cope
With the
Refugee Crisis
By Peter Wittig
G
ermany took in 1.1 million refu-
gees in 2015, the equivalent of
the U.S. receiving 4.4 million.
The huge number of people has pre-
sented our country with daunting
challenges.
One is the refugees’ cultural back-
ground, the fact that many of them
are young men, and the behavior of
some of these young men during the
assaults on women in Cologne on
New Year’s Eve. Another challenge is
that the crisis is open-ended. The
influx from Syria and other war-rav-
aged countries has slowed, but there
is no telling how many more refugees
will arrive this year.
Coping with these refugees will
require time, energy and money, and
stemming the flow is essential. But
the government knows that it must
not abandon Germany’s constitu-
tional commitment to offer haven for
people fleeing persecution and civil
war. We will deal with the crisis
because we must, and we will handle
it because we can.
My government has been
very clear: Those who want
to stay must adhere to our
laws and respect our values.
This won’t be easy. There is no
single lever to pull. Instead, it will
take a set of measures. These include
aiding countries along the route that
people are taking to safety, reducing
the numbers of those seeking politi-
cal asylum without sufficient legal or
humanitarian grounds and repatriat-
ing those already in Germany with-
out such grounds, integrating those
who stay, and countering human
trafficking.
Germany can do this only with its
European partners. European unity
has so far been far from perfect,
given the various pressures European
governments are experiencing. But
we remain committed to a European
approach to the refugee crisis.
The most important sources of the
crisis are the protracted civil war in
Syria and the horrific crimes of
Islamic State. Putting an end to both
will require concerted international
efforts. Chancellor Angela Merkel
co-hosted the recent donor confer-
ence in London, which raised $11 bil-
lion in humanitarian aid for Syrian
refugees—including a $2.5 billion
pledge by Germany.
Meanwhile, the assaults in Cologne
have intensified the debate over inte-
gration. My government has been
very clear: Those who want to stay in
Germany must adhere to our laws
and respect our values. They are the
laws and values of a secular Western
democracy, with equal rights for
women and men, with equal protec-
tion for all religious beliefs and
sexual orientations, and with a firm
commitment to Germany’s special
responsibility toward Israel. We will
not tolerate any violation of these
fundamentals—not by Germans, and
not by refugees.
Germany has experience assimilat-
ing large numbers of immigrants:
Beginning in the 1950s, millions of
foreign nationals who became known
as “guest workers” arrived from
southern Europe, including Turkey.
Integrating them into German society
was not without its problems and
backlashes, but by and large we
succeeded. Today, around 5% of
Germany’s population is Muslim, and
this population is not a source of
great friction.
The vast majority of today’s refu-
gees have come to Germany precisely
because of the absence of values-based
rule of law in their home countries.
They desire freedom from religious
persecution, sectarian violence, or war
waged against them by their own gov-
ernment. We must do all we can to
help them successfully integrate.
Ordinary Germans are doing so, by
volunteering for language training,
providing community support, orga-
nizing food and clothing drives, and
assisting with the small challenges of
daily life. The government has eased
restrictions and streamlined proce-
dures to make it easier for refugees
to work, and reduced the wait time
for asylum applications to be pro-
cessed by two months. We have also
made background checks and regis-
tration of every refugee the norm
again.
The refugee crisis is a test for Ger-
many unlike any other in the past 70
years. But we will resolve the crisis—
because it is in our own best interest,
and because our values compel us to
do so.
Mr. Wittig is Germany’s ambassa-
dor to the United States.
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 10, 2016
Philippines Gripped by Election Drama
Surprise front-runner,
abandoned as a baby
and adopted, has her
eligibility questioned
BY TREFOR MOSS
CEBU CITY, Philippines—In
a country where elections can
sometimes feel more like tal-
ent shows than political con-
tests, Grace Poe’s candidacy
for president—in a race that
officially kicked off Tuesday—
has been a soap opera in itself.
The daughter of Philippine
movie actors, Ms. Poe’s mete-
oric rise in politics began only
in 2013 when she was elected
to the Senate. Last year, the
48-year-old mother of three
emerged as a surprise top can-
didate in this year’s presiden-
tial election.
Then, in December, the
electoral commission disquali-
fied her, saying she wasn’t a
“natural-born Filipino” since
she’ had been abandoned in a
church as a baby and then ad-
opted. It also said she hadn’t
been back in the Philippines
for a required 10 years after
living in the U.S.
That was the cue for an-
other plot twist: The Supreme
Court last month suspended
the commission’s verdict,
Beijing’s Game Plan to Rule World Soccer
CHINA’S WORLD
ANDREW BROWNE
LONDON—Watch out,
warns Arsenal Football Club
manager Arsène Wenger: A
mass exodus of soccer talent
from Europe to China may
be under way, encouraged by
record-breaking transfer fees
and fat salaries.
Yes, China. This is a coun-
try where the national men’s
team is a hu-
miliating
failure, re-
flecting a
long history
of corruption
and match-
fixing at a league level. In
FIFA’s latest world rankings
it sits just one place above
the Faeroe Islands, rocky
outcrops halfway between
Iceland and Norway with a
population of 50,000. China
has no tradition of school
sports. Soccer moms are un-
heard of. Green spaces in
Shanghai, the largest city,
are roped off.
And the elite are ob-
sessed with golf, not soc-
cer—even if the working
masses are crazy for the
“beautiful game.”
Perhaps only a deter-
mined strongman could turn
this disaster around suffi-
DEBT
Continued from Page One
and tough rules world-wide
have forced banks to add capi-
tal to help withstand times of
turmoil.
Investors around the world
are concerned about a number
of factors, including slowing
growth, depressed energy
prices and the prospect of
negative interest rates in sev-
eral major economies. When
rates are negative, central
banks charge lenders for hold-
ing reserves, a factor that
could hurt bank profits.
Meanwhile, Bank of Amer-
ica Corp. analysts estimated
Tuesday that European banks
could lose $27 billion, or
about 6% of their pretax
profit over three years, from
energy exposure. The analysts
said that although European
banks have characterized
their energy exposure as low-
risk, the market is skeptical of
those assurances.
The malaise has landed on
Wall Street as well, where U.S.
bank stocks are down 18% this
year, according to the KBW
Nasdaq Bank Index.
Executives and government
officials have sought to calm
nerves. Deutsche Bank AG this
week issued a rare statement
Grace Poe is mobbed by supporters at the Philippine Supreme Court, which was hearing a petition questioning her citizenship.
keeping Ms. Poe in contention
while it pored over the consti-
tution’s fuzzy criteria for pres-
idential hopefuls.
Seizing that lifeline, Ms.
Poe launched into an energetic
campaign designed to make
her full participation seem in-
tegral to the election’s credi-
bility. “If you disqualify every-
body, especially the front-
runners, I think there will be a
weakening of the mandate of
ciently to attract the cream
of world soccer—and alarm
Mr. Wenger, one of the
game’s storied managers.
Such a figure has ap-
peared: President Xi Jinping.
The country’s No. 1 soccer
fan aspires to host the World
Cup—and win it. To that
end, he has entrusted the re-
juvenation of his favorite
boyhood game to a member
of the ruling Politburo, who
has tinkered with the school
curriculum to make room for
dribbling and passing drills,
and is assigning spaces
around the country for
grassy fields.
Money is gushing in to a
revamped Chinese Super
League. Television rights for
the 2016 to 2020 seasons
just sold for $1.3 billion,
more than 30 times the cur-
rent level.
A
ll this goes much fur-
ther than soccer. De-
veloping the game can
be seen as a proxy for the
way Mr. Xi would like to re-
invent the economy. Soccer’s
rise, with the help of the pri-
vate sector, as a form of
mass televised entertain-
ment fits well with his vision
of a consumer class driving
growth rather than factories
churning out exports.
There’s endless chatter
about the need for “innova-
tion” and “creativity” on the
field—the leadership’s two
favorite buzzwords as it re-
tools the economic growth
model. Foreign talent has an
important, though strictly
Signs of Distress
European bank stocks have been falling, and investors selling European
contingent convertible debt, or CoCos, have pushed credit spreads on
these securities to record distressed levels.
Stoxx Europe 600 Banks Index
225
200
175
150
125
132.7
–27.3% Since 2015
100
2015 ’16
*As measured by the gap in yield between CoCo bonds and interest-rate swaps
Sources: WSJ Market Data Group (index); Barclays (spreads)
confirming it had sufficient
funds to pay interest on its
contingent-convertible debt,
and co-Chief Executive John
Cryan said the firm is rock
solid. Even the German gov-
ernment stepped in, with Fi-
nance Minister Wolfgang
Schäuble telling Bloomberg
Television that he has no con-
cerns about the bank.
Goldman Sachs Group Inc.
Chief Executive and Chairman
Lloyd Blankfein used a confer-
WORLD NEWS
whoever is installed,” Ms. Poe
told The Wall Street Journal.
Ms. Poe and her running
mate, Sen. Francis Escudero,
launched their campaign Tues-
day with a rally in Manila,
where Ms. Poe’s godfather,
former president Joseph Es-
trada, is now mayor.
Ms. Poe held a substantial
lead over the other major can-
didates in a poll last month by
Pulse Asia, with 30% of re-
Manchester City’s Sergio Agüero takes a selfie with Xi Jinping
and British Prime Minister David Cameron in October.
subordinate, role to play.
The entire setup reflects
the personal preferences of
arguably the most powerful
Chinese leader since Mao.
Corruption? Mr. Xi has
launched a nationwide war
on graft that’s the equivalent
of a mass ejection, plus stiff
fines, suspensions and a few
lifetime bans.
Too bad for golfers. As
the government opens soccer
fields it closes golf courses.
Mr. Xi has banned Commu-
nist Party members from
teeing off as part of an aus-
terity campaign.
Credit spreads on
European CoCos*
9 percentage points
8
7 selling new shares.
6
5 cuts to dividends or employee
4 tal ratio sinks, these bonds can
2015 ’16
THE WALL STREET JOURNAL.
ence appearance in Miami to
try to allay concerns, saying
he had no qualms about doing
business with European
banks.
Yet the sharp selloff that
has marked 2016 continued
apace in Europe. Deutsche
Bank’s shares fell 4.3%, to
€13.23 ($14.81).
The exodus also extended
to banks’ bonds, a sign of fur-
ther worry. While stocks can
often swing wildly and fall
* *** THE WALL STREET JOURNAL.
the U.S. before returning to
assist her father’s own presi-
dential election campaign in
2004, which failed.
She came back to live in the
Philippines after Mr. Poe died
of a stroke later that year, but
the crucial date when she be-
came an official resident is in
dispute, leading to the debate
over presidential eligibility.
On the stump in Cebu City
recently, the diminutive Ms.
Poe wore her trademark white
shirt and jeans, her hair in a
tidy ponytail. The youngest of
BULLIT MARQUEZ/ASSOCIATED PRESS
the four leading presidential
candidates by a decade, she is
targeting young voters, in a
country where 40% of voters
are under 30.
“People from Cebu are so
good-looking!” Ms. Poe an-
nounced to a rapturous roar
from thousands of students
who crammed a gym at a local
university.
spondents supporting her. An- Philippines is the future we “I’ll vote for her,” said Niño
other poll had her in second will have for our children,” Anthony, a 23-year-old medi-
place, her status dented, she Ms. Poe said. “Will we go back cal student. “She has an hon-
said, by her legal uncertainty. to being the sick man of Asia, est, motherly approach.”
If elected, Ms. Poe said she or will we continue to be the Another student nearby said
would continue President Beni- miracle of Asia?” she would vote for a rival, Ro-
gno Aquino III’s policies while Born in Iloilo in the central drigo Duterte, a city mayor run-
setting an even more ambitious Philippines, Ms. Poe was aban- ning on an anticrime platform,
agenda. She vowed to fight doned by her biological saying the Philippines needs a
corruption, cut bureaucracy mother and adopted by action- strong leader “to solve the
and to relax foreign business movie star Fernando Poe Jr. problems of drugs and crime.”
ownership restrictions. and Susan Roces, who is also —Cris Larano
“What is at stake for the an actor. Ms. Poe later lived in contributed to this article.
Three Held in
Taiwan After
China—and win the World
Cup. In theory, world-class
players will raise overall
Tower Falls
standards, fill stadiums and BY JENNY W. HSU
draw sponsorship.
Meanwhile, Chinese trans- TAIPEI—The developer and
fer fees are soaring. Jiangsu architects of an apartment
Suning, an unheralded midta- complex in Taiwan that col-
ble club owned by an electri- lapsed in Saturday’s earth-
SERGIO AGUERO/ MANCHESTER CITY FOOBALL CLUB/ASSOCIATED PRESS
cal-appliances retailer, has quake were arrested and de-
snapped up the Brazilian star tained for questioning over
Alex Teixeira from Shakhtar the disaster that left dozens
Donetsk of Ukraine for $56 dead.
million. It has also snagged The district court in the
Chelsea midfielder Ramires, city of Tainan on Tuesday an-
another Brazilian, for a re- nounced the detention of Lin
ported $36 million. Ming-hui, the developer, and
League champions Guang- two architects of Wei-guan
zhou Evergrande have signed Construction Co.
striker Jackson Martínez for Prosecutors had arrested
$46 million from Atlético Ma- them on suspicion of profes-
drid (part-owned by China’s sional negligence leading to
richest man, shopping-mall deaths and injuries.
king Wang Jianlin). The 17-story Wei-guan
These players are all in Golden Dragon Tower toppled
their prime. They’re moving over in Saturday’s quake, lead-
on salaries as generous as ing to 39 of at least 41 deaths
those on offer in London or reported from the disaster, ac-
Barcelona, even if provincial cording to official figures.
capitals like Nanjing don’t More than 100 people re-
I
n a system where private have quite the same cachet. main missing and are believed
fortunes are often won Mr. Wenger points out that trapped in the rubble, the Tai-
through government fa- there is enough financial fire- nan government said.
vor—and lost when the polit- power in China to lure away None of the three men de-
ical winds turn—billionaires “a whole league of Europe.” tained could be reached to
are anxious to help bring the “I don’t know how deep comment. It wasn’t known if
World Cup home for Mr. Xi. the desire in China is,” he told they had retained legal coun-
In the past few weeks, ahead reporters, “but if there’s a sel.
of the Super League’s spring very strong political desire, Taiwan’s government-run
kickoff, Chinese club owners we should worry.” Central News Agency reported
have been outspending the The desire is there, all that investigators had found
Russian oligarchs who own right. Count on it lasting for the number of beam-column
some of the most lucrative at least as long as Mr. Xi is joint stirrups used in con-
soccer franchises in Britain. around. His two five-year struction was half of what had
It’s debatable whether terms as party chief expire been listed in the structural
splashing out fortunes on in 2022, and his political in- calculation, undermining the
foreign stars is the best way fluence will almost certainly building’s ability to withstand
to develop the game in linger long after that. earthquakes.
prey to short-term fears,
bondholders tend to take a
longer-term view.
Under postfinancial-crisis
lender, Germany’s largest by
assets, said late Monday that
it estimates it has sufficient
funds to pay interest on the
tions on the topic in recent
days.
U.S. bank shares, including
Goldman, opened lower on
regulations meant to shield debt due in April. Tuesday before rallying to
European taxpayers from be- Other big banks with CoCos close 0.2% higher.
ing on the hook for bank bail- under pressure include Italian The fears about the health
outs, European lenders have lender UniCredit and Switzer- of the European banking sys-
had to boost capital levels. land’s Credit Suisse, according tem are more intense.
Many have done so using con- to MarketAxess, a trading Deutsche executives in re-
tingent convertible bonds, as platform. cent weeks have been discuss-
a more attractive alternative The selloff in contingent ing buying back a chunk of
to diluting stockholders by convertible bank debt—a €90 the lender’s own debt, as one
billion market—represents the option for conveying their
If a bank’s capital cushion first test for a sector pro- views that the market is un-
gets too thin, the CoCo is jected to more than double to dervaluing the bank’s securi-
meant to mitigate the decline over €200 billion in coming ties, according to a person fa-
by forcing the bank to make years, according to research miliar with the matter.
firm CreditSights. BNP The Financial Times re-
bonuses, or the CoCo coupon Paribas SA analysts in a note ported Tuesday that Deutsche
isn’t paid. If a bank’s key capi- Tuesday called Deutsche Bank is considering a buyback
Bank’s update on its ability to of several billion euros of its
either convert into common pay coupons on the bonds re- debt.
equity, which doesn’t pay in- assuring. Poor performance by
terest and is the first to be Despite their inherent risk- lower-ranking bank securities,
wiped out if a bank fails, or be iness, CoCos have been largely including preferred shares
written off. These factors resilient in recent times. In and subordinate bonds, sug-
make the debt riskier to hold 2015, investors owning Euro- gests investors are beginning
than conventional bonds. pean bank CoCos earned a re- to rethink whether big U.S.
In the U.S., banks tend to turn of nearly 7%, according banks are a safe investment.
issue preferred shares to build to Barclays. By contrast, high- The PowerShares Financial
capital buffers. Preferred grade eurozone corporate Preferred Portfolio, an ex-
shares generally have priority debt produced a slightly nega- change-traded fund that
over common stockholders tive return. tracks the market for pre-
when it comes to paying divi- “People who have not pre- ferred bank stock, is down
dends. viously had to worry about 4.6% this year, with most of
Concerns that Deutsche CoCos now want to under- the losses coming over the
Bank might not be able to stand them,” said John Ray- past few days.
meet interest payments on its mond, an analyst at Credit- —Mike Cherney, Justin Baer
so-called CoCo bonds sent Sights, who said he has had a and Jenny Strasburg
those securities tumbling. The sharp increase in client ques- 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
WSJ.com/NY
Salt Is Latest Food Fight
State court to hear
restaurant group’s suit
over sodium warnings;
city cites health ‘crisis’
BY CORINNE RAMEY
At restaurants around
Times Square, saltshaker icons
adorn menu descriptions of
Hard Rock Cafe’s grilled-vege-
table flatbread, Olive Garden’s
chicken and shrimp carbonara
and T.G.I. Friday’s French on-
ion soup.
On Thursday, these salt-
shakers are expected to get
their day in court.
The National Restaurant
Association sued the city in
December, arguing the Board
of Health overstepped its au-
thority and acted arbitrarily in
requiring chain restaurants
with at least 15 locations na-
tionally to post high-sodium
warnings on their menus. Oral
arguments are scheduled to
begin Thursday in state Su-
preme Court in Manhattan.
The Board of Health has
said it acted within its author-
ity and called the warning a
KEVIN HAGEN FOR THE WALL STREET JOURNAL
Gotham Bar & Grill’s pastry chef, Ron Paprocki, is one of many local chocolate makers developing handmade bars and bonbons.
Chocolatiers Think Outside the Box
BY CHARLES PASSY
It may surprise some of
Gotham Bar & Grill’s patrons
that the Michelin-starred res-
taurant’s pastry chef, Ron Pap-
rocki, spends much of his time
locked in a space
FOOD the size of a stor-
& DRINK age closet.
There is a rea-
son for his seclu-
sion. He is living his version of
a Willy Wonka fantasy, leading
the restaurant’s efforts to de-
velop a line of handmade, art-
fully packaged chocolate bars
with names like “Wild” and
40°
TODAY’S
Weather
Real Feel
9 a.m. 31°
HIGH
5 p.m. 29°
Record High
61° (2001)
MORNING Sunrise/Sunset
FLURRIES 6:57 a.m./5:25 p.m.
Thursday’s High
29°
N.Y. Sports Lineup
7:30 p.m.
Wednesday
Grizzlies @ Nets
8 p.m.
Wednesday
Rangers
@ Penguins
For N.Y. sports coverage, see A20
URBAN GARDNER A16 | CITY NEWS A17 | FOOD & DRINK A18 | HEARD & SCENE A19
Sheepish Love
A duo covets unpopular dish
* * THE WALL STREET JOURNAL.
Win Some, Lose Some
The city’s Board of Health has a mixed record on some rules.
Calorie-labeling rule requiring calorie posting
on menus and menu boards for restaurants
2006
that already make calorie information available
voluntarily; struck down by court
Ban on use of artificial trans fats in restaurant
2006
food; no legal challenge
Calorie-labeling rule requiring calorie
posting on menus and menu boards for chains
2008
with at least 15 locations nationally;
upheld by court
Rule requiring graphic tobacco signs near
2009 cash register or tobacco display;
struck down by court
Restaurants must post letter grades reflecting
2010
food-safety inspections; upheld by court
Sugary-drink portion rule banning sale of drinks
2012
over 16 ounces; struck down by court
Sodium-warning labels for items with at least
2,300 milligrams of sodium on menus and
2015
menu boards at restaurants with 15 or more
locations nationally; now in court
significant step toward ad- Because public-health mea-
dressing a “public health cri- sures that survive legal chal-
sis”—specifically cardiovascu- lenges in New York have been
lar disease, which it cites as implemented elsewhere in the
the city’s leading cause of U.S., legal experts agree the
death. case could have implications
“Elegant,” as well as bonbons its peak with Valentine’s Day,
flavored with such ingredients chocolate makers are banking
as Taittinger Champagne and on year-round demand.
Italian olive oil. “We have big ambitions,”
The idea is for Gotham to Gotham’s managing partner
build a confection business and Bret Csencsitz said of its choc-
broaden its appeal beyond the olate operation, which started
regulars at its East 12th Street about a year ago.
location. The restaurant is The restaurant currently
hardly alone in its efforts: makes about 350 bars (priced
High-end restaurants and low- at $8-10 apiece) and a few
budget upstarts alike are jump- dozen boxes of bonbons (start-
ing on the chocolate band- ing at $20) each week, out of a
wagon. And existing chocolate 28-square-foot space in its
makers are expanding their op- basement kitchen. It sells most
erations. of the chocolate in-house to
While the fervor for all regular customers.
things cocoa typically reaches But Gotham’s management
Musical Fable of 1940
Is Brought Back to Life
BY JENNIFER SMITH ter’s Encores!
The annual musical-theater
On a recent winter day, the series resurrects neglected
jazzy wail of a muted trumpet works by major American
over lush strings transformed composers and lyricists,
a fluorescent-lit Manhattan mounted in concert form with
rehearsal hall into a time ma- top stars and a full orchestra
chine. after whizzing through only a
Destination: 1940, the year handful of rehearsals.
the musical fable “Cabin in Reviving “Cabin in the Sky”
the Sky” made its Broadway added a new hurdle to the
debut with an African-Ameri- usual time crunch. The or-
can cast featuring actress and chestrations for the show van-
vocalist Ethel Waters and ished years ago, and a 1943
dance pioneer Katherine Dun- film version ended up discard-
ham. ing much of the original
Well-reviewed then but score.
rarely performed since, the So Encores! enlisted the re-
show by composer Vernon nowned orchestrator Jona-
Duke and lyricist John La- than Tunick, known for his
touche returns to the stage work with Stephen Sondheim,
this week to open the 2016 to create a new one based on
season of New York City Cen- Please turn to page A19
| A18
far beyond Times Square.
A decision to strike down
the rule, however, could deter
other cities from instituting
similar regulations, said Doug
Blanke, founder and director
of the Public Health Law Cen-
ter in Minnesota, one of about
a dozen organizations that
submitted a brief in support of
the Board of Health. “That
would have a reverberation or
chilling effect in itself,” he
said.
The case is a study in text-
book public-health arguments.
“The reason this case is fas-
cinating is it has all of the big
three public-health law issues
you tend to see,” said Micah
Berman, a professor of public
health and law at Ohio State
University, who isn’t involved
in the case.
The three issues are admin-
istrative authority, First
Amendment rights and pre-
emption. Administrative au-
thority deals with whether the
city’s health department can
make such rules without the
New York City Council. In
2014, a state appeals court
found the board, which is ap-
Please see SALT page A16
team, which traveled to Swit-
zerland to source the chocolate
it uses as the base for its
treats, hopes to expand the
business to gourmet stores and
other retailers. It also hasn’t
ruled out opening a stand-
alone chocolate shop of its
own.
Whatever path Gotham
takes, it has plenty of company
among local entrepreneurs.
They range from Harlem-based
Sol Cacao, which specializes in
“bean-to-bar” chocolate-mak-
ing, starting with raw cacao
beans, to Stick With Me
Please see COCOA page A18
Glenn Drewes plays a solo in a rehearsal of ‘Cabin in the Sky,’ which returns to the stage this week.
Knicks‘ Story
Has Three Sides
SPORTS | A20
Wednesday, February 10, 2016 | A15
NYPD Officer Peter Liang, right, arrives for closing arguments in
his Brooklyn Supreme Court trial in the death of Akai Gurley.
NYPD Officer’s
Shooting Case
Goes to the Jury
BY REBECCA DAVIS O’BRIEN
In the manslaughter trial of
New York Police Department
Officer Peter Liang, one fact
hasn’t been in dispute—a shot
fired from the officer’s gun, in
the darkness of a public-hous-
ing stairwell, struck and killed
an unarmed man.
A Brooklyn jury began de-
liberating on Tuesday
whether that fatal shot—and
Officer Liang’s actions in the
critical minutes that fol-
lowed—amounted to criminal
recklessness, as prosecutors
allege, or a tragic chain of
events stemming from an ac-
cident, as the defense con-
tends.
Officer Liang, 28 years old,
was charged with six counts
including second-degree man-
slaughter, criminally negligent
homicide and official miscon-
duct in Akai Gurley’s Nov. 20,
2014, death.
On Tuesday, before the jury
began its deliberations in
state Supreme Court in Brook-
lyn, Justice Danny Chun dis-
missed one of the two official-
misconduct counts.
Justice Chun left in place a
related misconduct charge
that was based solely on the
defendant’s failure to provide
first aid as an NYPD officer. If
convicted on the manslaugh-
ter charge, Officer Liang faces
up to 15 years in prison,
though the court isn’t re-
quired to impose incarcera-
tion.
In closing arguments ear-
lier Tuesday, Assistant Dis-
trict Attorney Joseph Alexis
said Officer Liang, who had
“sworn to protect” the people
of New York, violated his
training, fired his gun “and
killed an innocent man,” then
tried to cover his tracks.
Mr. Alexis told the jury
ASSOCIATED PRESS
BRYAN R. SMITH/ASSOCIATED PRESS
that Officer Liang didn’t in-
tend to kill Mr. Gurley, 28,
who was in the stairwell with
his girlfriend. Still, he said,
“This is not an accident. This
is recklessness. This is an of-
ficer who couldn’t properly
handle his gun.”
Mr. Alexis added: “All the
police training in the world is
worthless if an officer just ig-
nores that critical training
and shoots just because he
heard a sound.”
Officer Liang’s lawyer, Rob-
ert E. Brown, described the
prosecution’s case as “a lot of
pounding the table…because
neither the facts nor the law
are on their side.”
Officer Liang faces
up to 15 years in
prison if convicted
of manslaughter.
Mr. Brown marshaled evi-
dence and witness testimony
to dispute the prosecution’s
timeline of the incident. At
the time of the shooting, Offi-
cer Liang and his partner, Of-
ficer Shaun Landau, were con-
ducting a so-called vertical
patrol of the Louis H. Pink
Houses in Brooklyn.
Nobody “burst into the
stairwell” with a finger on the
trigger, Mr. Brown said. Offi-
cer Liang had his gun drawn,
in keeping with NYPD train-
ing, because he sensed a pos-
sible threat, and his finger
was alongside the barrel of
the weapon, he said.
Mr. Brown said Officer Li-
ang and his partner didn’t
spend four minutes arguing
about whether to report that
a man had been shot, as the
prosecution has contended.
Please see LIANG page A16
CASSANDRA GIRALDO FOR 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
A16 | Wednesday, February 10, 2016
LIANG
Continued from page A15
They argued for about a min-
ute about how to report the
shot, Mr. Brown said.
“The reality of it is, as
soon as he realized he shot
Akai Gurley, he put it over the
radio,” Mr. Brown said.
In emotional testimony
Monday, Officer Liang told
the jury that he stepped into
the pitch-black stairwell and
was startled by a sound. “My
gun just went off when I
tensed up,” he said.
’...as soon as he
realized he shot
Akai Gurley, he put
it over the radio.’
Officer Liang told the jury
that he didn’t realize his shot
had hit anybody until he saw
Mr. Gurley lying in the stair-
well below a few minutes af-
ter the gun went off.
But Mr. Alexis told the jury
that Officer Liang must have
known that the sound he
heard in the stairwell was a
person and fired the gun in
that direction. He was aware
that firing his gun could kill
somebody, Mr. Alexis said, and
after the shot tried to hide
and “hush up” the incident.
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“He was thinking only
about himself from the begin-
ning,” Mr. Alexis said.
As with the evidence phase
of the trial, police practices
and conditions in New York
City’s public-housing build-
ings loomed large in closing
arguments.
Mr. Brown pointed to
NYPD training guidelines,
presented as evidence in the
trial, that advised officers to
be vigilant about dangers in
public-housing stairways.
“Is it that outrageous to
say that an officer doing a
vertical patrol has to be con-
cerned about an ambush? No
it is not,” Mr. Brown said.
Mr. Alexis said police are
supposed to protect the peo-
ple who live in public hous-
ing.
“Living in public housing
isn’t a crime,” he said.
Officer Landau, who re-
ceived immunity from prose-
cution, didn’t call for help ei-
ther, Mr. Brown said. “Yet
somehow he’s not charged
with official misconduct for
failing to render aid,” he said.
Mr. Alexis acknowledged
that Officer Landau didn’t
make a call. “Landau is no
hero,” he said. “He has
earned no reward.”
Before deliberations began,
Justice Chun told jurors:
“Don’t try to be detectives.”
Decide the case on the evi-
dence, he said. Deliberations
are to resume Wednesday.
OPEN 7 DAYS
A WEEK
CITY NEWS
Centre Street, with its fair share of courthouses and government offices, is often a backdrop for TV crime dramas and celebrity trials.
Hear Ye, Hear Ye! Jury Duty Was Fun
When I told people I was
serving on a grand jury—not
for a couple of days but for a
month—the typical reaction,
besides commiseration, was
surprise that I hadn’t man-
aged to avoid it.
Jury duty once signified
you didn’t possess the mini-
mal wiles or
clout to get
yourself ex-
empted for
life. These
days, it’s
URBAN much harder
GARDNER to escape
RALPH from serv-
GARDNER JR. ing, whether
you’re just a
regular per-
son, a former mayor or a
movie star.
But I actually welcomed
the experience.
The trip downtown to 80
Centre St. every day offered
an excuse to visit a couple of
my favorite restaurants in
Little Italy and Chinatown.
Angelo’s of Mulberry Street
makes an excellent plate of
fried mozzarella in a special
sauce that includes just an
insinuation of anchovies.
Then there’s Joe’s Shang-
hai on Pell Street, where
beef with scallions is made
the old-fashioned way—un-
encumbered by extraneous
vegetables and sauces.
I was also looking for-
SALT
Continued from page A15
pointed by the mayor, ex-
ceeded its regulatory author-
ity in an effort to restrict the
sale of large, sugary drinks.
The First Amendment pro-
tects free speech, giving a
person—or, in this case, res-
taurant—the right to speak, or
not to speak.
The final issue, pre-emp-
tion, addresses conflicts be-
tween state or local and fed-
eral law. The association says
federal menu-labeling require-
ments, which go into effect in
December 2016 and don’t in-
clude a sodium warning,
trump the local law.
“You don’t know which one
a court will necessarily rely
on for its decision, but there
are potential implications for
all three,” Mr. Berman said.
Hard Rock Cafe and T.G.I.
Friday’s declined to comment
on the sodium-warning labels.
The Olive Garden didn’t re-
spond to requests for com-
ment.
The sodium warnings are
the latest in a string of con-
sumer-targeted, public-health
initiatives by the Board of
Health, most of which are
identified with former Mayor
Michael Bloomberg.
A 2012 ban on large por-
CORRECTIONS 
AMPLIFICATIONS
The last name of David
Cromer was misspelled as
Crome in a photo caption ac-
companying an article on
Tuesday about off-Broadway
theater companies.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
ward to spending time along
Centre Street, a part of town
most of us know mostly as a
backdrop for TV crime dra-
mas, or when celebrity de-
fendants are whisked into
waiting Suburbans or town
cars with reporters in hot
pursuit.
Soon after college, I
worked at 100 Centre St. in
the public information office
of the city’s Department of
Correction. Later, as a re-
porter, I covered a few celeb-
rity trials there or in nearby
courthouses—Sean “Puffy”
Combs, Martha Stewart and
Anthony Marshall, Brooke
Astor’s son. So returning to
the scene felt like a home-
coming of sorts.
Finally, and while it may
sound hokey, jury duty is a
fundamental responsibility
of citizenship. For those who
complain that democracy has
been pirated by the rich and
powerful, here’s an opportu-
nity to stay in the game.
The grand jury I served
on met weekdays from 2 to
5 p.m. and heard only nar-
cotics cases.
Some days we had sev-
eral cases. Other days, only
one or no cases were pre-
sented.
An assistant district at-
torney would explain the
charges that he or she
wanted us to indict on. Then
A restaurant menu on 46th Street in Manhattan with saltshaker symbols warning of high-sodium items.
tions of sugary drinks, which
eventually was struck down in
court, struck a nerve because
of the sense that “it was in-
terfering with personal liberty
and autonomy,” said Thomas
Merrill, the health depart-
ment’s general counsel.
“Here we’re simply saying
the public has a right to know
that an item might have more
sodium than a person should
eat in a day,” he said.
The warning symbol ap-
pears next to menu items with
at least 2,300 milligrams of
sodium, the daily limit recom-
mended by the Food and Drug
Administration.
The restaurant association
will argue the saltshaker la-
bels would hurt its members’
businesses because restau-
rants with fewer than 15 loca-
tions have no warnings, said
Preston Ricardo, external
counsel for the association.
Chain restaurants “have
these thermonuclear-appear-
ing saltshakers, and they go
next door to their local store
* * THE WALL STREET JOURNAL.
the prosecutor would call
undercover police officers to
testify, usually describing
the primarily buy-and- bust
operations that netted the
alleged crooks and reading
the results of lab tests re-
garding the pills and pow-
ders they discovered.
On several occasions, the
alleged perpetrators testified
in their own behalf, which
sometimes swayed the grand
jurors. Without that testi-
mony, we had only the offi-
cers’ testimony to go on.
I’m not sure
we bonded. But
everybody seemed
to get along.
And while a majority of
us typically voted to indict,
there were occasions when
we declined to do so, or re-
duced the charge.
I’m not sure we bonded.
Unlike a trial jury, we didn’t
spend long hours or even
days deliberating one case.
But everybody—a true cross-
section of the population,
from what I could tell—
seemed to get along and
take his or her responsibility
seriously.
We had no reluctance
about peppering the prose-
and there’s nothing,” he said.
On First Amendment
grounds, the association will
argue the warnings are “com-
pelling restaurants to voice
the government’s viewpoint,”
and links to cardiovascular
disease “are all potentials and
mays,” Mr. Ricardo added.
The Board of Health says
numerous scientific studies
have tied sodium consumption
to high blood pressure, a ma-
jor risk factor for cardiovascu-
lar disease. The warning label
“provides factual and uncon-
troversial information,” and
therefore doesn’t violate the
First Amendment, it said in
legal filings.
Because the city’s black
residents consume more so-
dium than whites, said Sonia
Angell, the health depart-
ment’s deputy commissioner
for prevention and primary
care, the measure also fur-
thers the department’s mis-
sion to reduce the disparity in
health outcomes for different
demographic groups. “The
KEVIN HAGEN FOR THE WALL STREET JOURNAL
cutors with questions about
the evidence or the law, hav-
ing transcripts reread to us
or even calling back wit-
nesses if we weren’t unsatis-
fied that we had enough in-
formation to make a
reasoned decision.
So what did I learn from
my jury service?
That the area around the
Port Authority Bus Terminal
is a hotbed for drug sales.
That some of the people
who get caught up in the
drug trade are more hard-
luck stories than hardened
criminals.
That the police spend a
lot of resources catching
drug sellers. And that hope-
fully, with addiction reach-
ing epidemic levels nation-
wide, all their busts might
have something of a deter-
rent effect.
And finally, after seeing a
parade of undercover offi-
cers, I’m convinced there’s
no way a crook, no matter
how seasoned, can confi-
dently distinguish an under-
cover cop from a potential
customer.
Some are as elaborately
tattooed and look as unsa-
vory as anybody you’ll find
on the streets.
And I mean that as a
compliment.
ralph.gardner@wsj.com
ALLISON PASEK/THE WALL STREET JOURNAL
health justification is clear,”
she said.
The saltshaker symbol’s im-
pact is another matter. The
calorie labels, for example,
don’t have a large effect on
ordering at fast-food restau-
rants, said Brian Elbel, associ-
ate professor of population
health at the NYU School of
Medicine.
But sodium warnings could
be different. Research shows
consumers tend to respond
better to symbols than num-
bers, he said.
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
could be published in our
weekly Feedback column on
Friday. Letters will be edited
for brevity and clarity. Please
include your city and state.
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 10, 2016 | A17

CITY NEWS

Defendant Says Love Is in the Air

He Was Framed
In Three Killings
BY THOMAS MACMILLAN
A clothing merchant, who
fought unsuccessfully for
years to act as his own attor-
ney, took the stand Tuesday in
his triple murder trial and at
last gave his version of events:
that he was framed by a busi-
ness associate.
But during cross-examina-
tion, defendant Salvatore Per-
rone acknowledged that sur-
veillance video showed him
near one of the crime scenes
and that he owned a rifle tied
when police stopped him for
questioning. He had been iden-
tified on video carrying a black
duffel bag following the third
slaying, and a bag found at his
girlfriend’s home contained a
.22-caliber rifle and a knife.
Defense attorney Howard
Kirsch asked his client if he
had shot any of the victims.
“Absolutely not,” Mr. Per-
rone said forcefully. “I was set
up.”
Under cross-examination by
Assistant District Attorney
Melissa Carvajal, however, Mr.

ANDREW RENNEISEN/GETTY IMAGES

to the slayings.
“I have nothing to hide,” he
told the prosecutor, after tak-
ing the stand in state Supreme
Court in Brooklyn with a fist-
ful of documents and a black
marker. “I’ve waited for this
moment for three years.”
‘I think I’ve seen
this scene in a
movie,’ said Justice
Alan Marrus.
The once-successful busi-
nessman is accused of staking
out and killing three Brooklyn
shopkeepers in 2012. In the
Perrone said that the rifle in
the bag, which was linked to
the killings, belonged to him.
Mr. Perrone readily said
that surveillance video placed
him near the crime scenes.
“Absolutely,” he said. “I’m not
denying it.”
He acknowledged that in-
vestigators had found a HEART OF GOLD: A ring of 12 metallic mirrored hearts was unveiled Tuesday in Times Square. ‘Heart of Hearts,’ created by
sawed-off rifle stock in his Collective-LOK, is designed to reflect the city lights and create special kissing booths. The installation is on view through March 6.
home, shell casings in his
basement, and the gun permit
that connected him to the
weapon used in the killings. to 10 years, interest free, once “The King and I,” was due to re- the wage to $15 immediately.
“If it’s my gun, of course
there’d be my fingerprints and
Greater the child has entered school.
Other ideas from the Senate’s
turn to the Rodgers and Ham-
merstein musical from March 1-
Gov. Chris Christie’s office, re-
sponding to that proposal, said
DNA on the gun,” he said.
Mr. Perrone was reluctant New York Democratic minority include a
law allowing workers to take
April 17.
Mr. Watanabe’s publicist said
raising the minimum wage
would hurt the economy.
to leave the stand at the end
of questioning. Watch paid time off to care for a new
child or sick loved one, increased
Tuesday the actor has undergone
endoscopic surgery and is recu-
—Associated Press

years since, Mr. Perrone—
prone to outbursts in the
courtroom—sought to repre-
sent himself and questioned
his legal counsel. But after an
exam found he might suffer
from a psychiatric disorder, a
judge denied the request.
Under questioning by his
defense attorney Tuesday, Mr.
Perrone said a business associ-
ate delivered a black bag to
him at his girlfriend’s Brook-
lyn apartment. Mr. Perrone
said he thought that the bag
contained clothing samples.
He said he didn’t open the
bag right away and still hadn’t
looked in it two days later,
“I didn’t go through what I
wanted to say,” he protested.
“Can I just speak just two min-
utes?”
“I think I’ve seen this scene
in a movie,” said Justice Alan
Marrus. “Mr. Perrone, please
step down.”
Justice Marrus said closing
arguments will begin Wednes-
day at 10 a.m.
The state alleges Mr. Per-
rone killed 65-year-old Mo-
hamed Gebeli in his Bay Ridge
clothing store, 59-year-old
Isaac Kadare in his Bensonhurst
99-cent store, and 78-year-old
Rahmatollah Vahidipour in a
Flatbush Avenue boutique.
NEW YORK
Tax Deferrals Could
Help With Child Care
Democrats in the state Sen-
ate say the state should allow
families with young children to
defer some of their state income
taxes to help them cover the
cost of child care.
The proposal announced
Tuesday would allow families to
keep up to $2,000 of their state
taxes to pay for child care. The
amount would be repaid over up
child-care subsidies and help for
new mothers dealing with post-
partum depression.
—Associated Press
BROADWAY
‘King and I’ Star’s
Return Is Delayed
A publicist for Ken Watanabe
says the Tony Award- and Os-
car-nominated actor has been
forced to delay his return to
Broadway’s “The King and I”
while he battles stomach cancer.
The 56-year-old Japanese ac-
tor, who made his American
stage debut last year opposite
Kelli O’Hara in the revival of
perating at a hospital in Japan. CONNECTICUT
—Associated Press
Exonerated Man
NEW JERSEY Awarded $6 Million
A man who served more than
A New Plan to Raise 20 years in prison for a murder
Minimum Wage he didn’t commit has been
The state’s minimum wage awarded $6 million by the state.
would rise to $15 over eight Miguel Roman was released
years and employers who pay from prison in 2008 after DNA
above the rate could qualify for tests pointed to another man in
a tax credit under a proposal un- the 1988 slaying of a 17-year-old
veiled Tuesday by Senate Presi- girl in Hartford.
dent Steve Sweeney. Mr. Roman said in a filing
The current state minimum with the claims commissioner
wage is $8.38 an hour. last September that in prison he
Democratic Assembly lived in constant fear that he
Speaker Vincent Prieto unveiled might be assaulted.
a proposal last week to increase —Associated Press

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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
A18 | Wednesday, February 10, 2016
A Meal Fondly Remembered, by Some
When the writer and her then-boyfriend were dating, they discovered an extraordinary dish together. A dish almost everyone else hated.
BY SOPHIA HOLLANDER
The night I worked up
the nerve to tell Andrew for
the first time that I loved
him, we were standing
alone, watching the East
River from the South Street
Seaport.
“I have something impor-
tant to tell you,” I said.
“I know,” he replied.
“You’re hungry.”
It was a good guess. Food
has always been an impor-
tant part of our relationship,
of all my relationships. Mile-
stones and memories are
marked by meals, from
cooking classes in Italy with
Andrew on our honeymoon,
to Passover at my grandpar-
ent’s house, to my father’s
Chinese banquet for his
50th birthday.
But for falling in love,
one dish in particular stands
out, from a now-closed res-
taurant on Commerce
Street.
Growing up in New York
City, Commerce Street had
long been my favorite part
of town, a secret twist of a
street out of time. This tiny,
curved block in the West
Village had no stoplights,
just quaint townhouses and
a small theater where I’d
seen my first play. I loved
the street’s miniature lamp-
post that seemed lifted from
“The Lion, the Witch and
the Wardrobe.”
Now, right next to the
lamppost, my then-boy-
friend took me to a restau-
rant called Commerce. We
stepped past a thick stone
exterior to a hidden room of
golden warmth, art deco
murals adorning the walls
and happy, hungry adults
packing the tables. It was
the perfect secret place to
complete my magical street.
But the dish that sealed
the experience was a brick
of seared, braised lamb, like
nothing I’d ever eaten be-
fore.
I’d enjoyed seared meats
with their crispy, salty, cara-
melized skin. I also loved
braised meats, with their
soft, sweet transformation.
Here was a dish that com-
bined such seemingly in-
compatible opposites, some-
how incorporating the most
distinctive elements of each.
The Feed
Carnegie Deli Is Back
The brisket is back in town.
After a 10-month closure, the
Carnegie Deli reopened on Tues-
day, ending speculation that the
midtown bastion for corned beef,
pastrami and other deli fare was
gone for good.
“I’m ecstatic,” said owner Mar-
ian Harper as she surveyed the
lunchtime crowd.
The restaurant, which first
opened in 1937, was forced to
close in April 2015 after Consoli-
dated Edison inspectors found it
had hooked up a gas line improp-
erly. Ms. Harper said the gas is-
sue had been resolved and that
the restaurant also used the clo-
COCOA
Continued from page A15
Sweets, a Nolita chocolate shop
headed by former Per Se pas-
try chef Susanna Yoon, whose
line of bonbons are flavored
with everything from peanut
butter and jelly to yuzu.
Gotham isn’t even the only
high-end restaurant getting in
the game. Il Buco Alimentari e
Vineria, an Italian dining spot
and market in NoHo, last year
hired Genevieve Meli to head
its new chocolate program. Ms.
Meli, a veteran pastry chef, is
turning out offbeat treats like
edible heart-shaped boxes
made from chocolate, and
chocolate-covered quinoa.
“You can do so much with
chocolate,” she said.
Add it all up and chocolate
is equating to big business:
Sales of chocolate candy are
expected to top $26 billion by
2018, up from about $22 billion
in 2015, according to market
researcher Packaged Facts.
Chocolatiers point to many
FOOD & DRINK WEDNESDAY
The magic of discovering
that dish seemed to signal
that my boyfriend and I
could do the unexpected,
that we could find wonder
in the world. That my places
could become his, and to-
gether we could find new
depths and dimensions.
This lamb was so unex-
pected, so delicious, its dis-
covery so joyous, it felt like
love. On the strength of that
dish, Commerce became our
go-to place for celebratory
dinners, birthdays and the
night we got engaged.
And they never served it
while we were there again.
It turns out that’s be-
cause pretty much every-
body else hated it.
sure to address other matters,
including giving the deli a thor-
ough scrub-down.
She added that most of the
restaurant’s roughly 50 employ-
ees have returned to their old
jobs. The menu, which includes a
“Woody Allen” sandwich (“lotsa
corned beef plus lotsa pastrami”)
and a “My Fair Latkes” platter,
remains the same, she said.
All of which was welcome
news to Carnegie regulars who
stopped by for a meal. Among
them: Fred and Gloria Colvin, a
longtime married couple from
Portsmouth, Va. Occasional visi-
tors to the city, they first met at
the deli 45 years ago.
As a result, it holds a special
place in their lives. But Ms. Colvin
said she comes mainly for the
food. “No matter where I’ve been,
I can’t find the same corned
beef,” she said.
854 Seventh Ave.; carnegie-
deli.com
Melted chocolate is poured into a mold at Gotham Bar & Grill, left. The finished product, right.
factors driving the boom, in-
cluding the relatively low cost
of entry—Gotham acquired its
startup equipment for less
than $5,000—and the choco-
late-as-health-food buzz that
antioxidant-rich dark chocolate
has benefited from.
Above all, industry insiders
say that consumers are now
embracing chocolate the way
It was only on the menu
for a single month during
the restaurant’s eight-year
run, said the chef, Harold
Moore.
He did everything he
could to make it succeed, he
said. That included conceal-
ing the name of the cut
(lamb’s neck, ahem), toying
with menu descriptions and
setting a relatively low price
of $24. In retrospect, this
may have been a mistake, he
said.
If he had priced it a few
dollars higher, it might have
attracted more serious eat-
ers, willing to invest in a
more unusual dish, Mr.
Moore said. It would have
“competed with other dishes
The scene outside the Carnegie Deli on Tuesday, when the 79-year-
old restaurant reopened after being forced to close 10 months ago.
Restaurant Therapy
Sigmund Freud may have
been known as the father of psy-
choanalysis. But the late doctor
is now also the inspiration behind
a newly opened Austrian restau-
they have taken to wine, beer
and coffee—as a gourmet cate-
gory worthy of exploration be-
yond the mass-market prod-
ucts that have traditionally
been offered.
“Did anyone know what
bean-to-bar was 10 years ago?”
said Mr. Paprocki.
The rise of artisanal choco-
late in New York has been sim-
* * THE WALL STREET JOURNAL.
that were in its class,” he for me,” he said.
said. The most frustrating
It had practical origins. part, Mr. Moore added, was
Mr. Moore wanted to in- that there was no way to fix
clude American lamb on the it. “Usually if something
menu, and neck was the comes back there’s some-
cheapest cut. thing wrong with it,” he
One of his chefs sug- said. “I didn’t think there
gested braising and searing was anything wrong with
it for an original presenta- the dish.”
tion. It might have been too It was certainly time-in-
original. tensive. It took 48 hours to
When the meat arrived prepare, including searing
at tables as a solid block, the lamb with olive oil, salt,
not stew, “people didn’t pepper and chili powder,
know how to handle it,” Mr. then braising it overnight in
Moore said. chicken stock with herbs
Where popular dishes like rosemary and thyme,
might get 50 orders a night, and classic stock vegetables,
the lamb got seven or eight. including celery, onion and
Two or three were always garlic.
sent back, “a big problem As the meat cooled, the
Man. With Freud, the chef is em-
phasizing what’s billed as a “mar-
ket-driven, seasonal menu,” but
one that incorporates such Aus-
trian mainstays as Wiener schnit-
zel and such American dishes as
CHARLES PASSY/THE WALL STREET JOURNAL
a cheeseburger (a “Freud Burger,”
with farmhouse cheddar, onion
jam and crispy fennel).
As for drinks, the wine list
emphasizes central-European of-
ferings. There’s a cocktail menu,
too, highlighted by a drink called
the Slip (as in a Freudian one)
with vodka, lime juice, egg
whites, simple syrup and orange
bitters.
What’s the connection be-
tween food and drink and the
good doctor? Mr. Frauneder said
rant in Greenwich Village. his new spot is intended to leave
Freud, as the dining spot is diners sated on many levels, ap-
simply called, comes courtesy of pealing to mind and body alike.
Michelin-starred chef Eduard “To me, a restaurant is thera-
Frauneder, who has been behind peutic,” he said.
the East Village tavern Edi & the 506 LaGuardia Place;
Wolf and its sister bar the Third freudnyc.com
Sunset Park.
Bean-to-bar chocolatiers
started popping up in the bor-
ough’s hipper neighborhoods
over the past few years. Most
notable among them: Mast
Brothers, which was founded
KEVIN HAGEN FOR THE WALL STREET JOURNAL (2)
in 2007 and has its main shop
in Williamsburg. It opened a
London satellite in the past
year and is in the process of
expanding to Los Angeles.
Its success also points to
challenges the burgeoning in-
dustry is facing. In December,
Mast came under fire when a
food blogger challenged
whether it was bean-to-bar
from its inception. The com-
pany said that the criticism
misrepresented its roots, and
that it “tested” another choco-
mering for years. Jacques Tor- late-making method before it
res, one of the city’s best- began full-scale production.
known chocolate makers, Industry insiders say the is-
started his operations in 2000 sue has led consumers to ask
and now heads a $10 million-a- more questions about the qual-
year business that incorporates ity and standards of chocolate
eight retail locations through- makers in general.
out the city, including four that There is also a question
have opened since 2014, plus a about how many artisanal-
40,000-square-foot manufac- chocolate vendors the market
turing facility in Brooklyn’s can support. “The shakeout is
JON KRAUSE
chefs reduced the braising
liquid into a potent aromatic
jus. They removed the fat,
chopped the meat, stirred in
the jus and pressed the mix-
ture between sheet pans.
Then they chilled it over-
night before slicing the meat
into bricks, searing it with
butter and olive oil, and fin-
ishing it in the oven.
“As a chef, you put your
mind into something and
your heart and soul into it,
and you’re very proud of it. I
repackaged that thing so
many ways to try and get
people to understand it,” Mr.
Moore said. “It was a heart-
breaker.”
But on other hearts, it
had the opposite effect.
Burger ‘Salvation’
April Bloomfield, the chef
behind the Spotted Pig and the
Breslin Bar & Dining Room, has
gone into the hamburger busi-
ness.
Her newest restaurant, Sal-
vation Burger, launched in part-
nership with Ken Friedman, fea-
tures the favorite in all its
refined glory.
Beef is sourced from a farm
in upstate New York, and the
grinding of the meat is done by
the restaurant’s own butcher.
Potato buns are made in-house
as well.
Non-beef eaters have op-
tions, too: Salvation Burger of-
fers a veggie burger and fish
sandwich. Plenty of pies, includ-
ing fried hand pies, are avail-
able for dessert.
230 E. 51st St.; salvation-
burger.com
—Charles Passy
definitely coming,” said Ken
Blanchette, vice president for
purchasing at FreshDirect, the
New York-based grocery-deliv-
ery service.
Even Mr. Torres has some
concerns about the future.
While his overall sales have
grown because of new loca-
tions, his same-store sales have
been flat.
“I question if I am cannibal-
izing some of the business,” he
said, referring to his recent ex-
pansion.
For Tanya Ponder, who is
producing her line of Wander-
lust Chocolate bonbons out of
a Bronx food-business incuba-
tor program, the hope is that
New Yorkers have an endless
appetite.
She uses thematic ingredi-
ents to convey stories: For ex-
ample, her Italian collection in-
corporates prized Italian
ingredients like figs and chest-
nuts. After being in business
for about a year, however, she
has only sold a few dozen
boxes.
“It’s a crowded field,” she
said.
 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 10, 2016 | A19

ARTS & ENTERTAINMENT

Musical Fable
From the ’40s
Gets New Life

JOAN MARCUS
Chuck Cooper, holding a prop, and other cast members rehearse ‘Cabin in the Sky.’ The orchestra, left, and the original score, below.

Continued from page A15
a copy of the conductor’s pi-
ano score. The work began
over the summer and intensi-
fied in the fall.
“It’s really like a whole new
production—from the bottom
up,” said Mr. Tunick. “What’s
great about an exercise such
as this,” he added, is that
“you can actually step into the
‘Taking a Chance
on Love’ is perhaps
the best-known song
from the show.
past and work with one of the
great songwriters of history
that you’ve only read about.”
“Taking a Chance on Love”
is perhaps the best-known
song from the show. Mr. Duke
also wrote “April in Paris,”
with E.Y. Harburg, “Autumn in
New York,” and “I Can’t Get
Started,” with Ira Gershwin.
Described at the time as a
“Negro fantasy,” “Cabin in the
Sky” is about a charming ras-
cal named Little Joe who dies
in a saloon brawl and through
the intervention of his long-
suffering wife, Petunia, is
granted six months to prove
he should go to heaven, not
hell.
“I’m fascinated by the
show,” said Encores! Music Di-
rector Rob Berman. “It’s a
jazz score,” he said, that also
contains elements of classical
chorales—a nod to Mr. Duke’s
training at the Kiev Conserva-
tory in prerevolutionary Rus-
sia—as well as a cappella spir-
ituals.
The director this time
around is Ruben Santiago-
Hudson, a playwright, per-
former and director known for
his work in August Wilson’s
plays, who will also be adapt-
ing the script, Mr. Berman
said.
Over the last several
months, Mr. Berman went
through the piano score to
clean it up and re-create lost
vocal arrangements. He then
sent the material to Mr. Tu-
nick, whose job was to trans-
form what Mr. Berman called
“a very basic piano accompa-
niment” into a full score for
the 30-odd musicians in the
Encores! Orchestra.
At the first full orchestra
rehearsal in January, that pro-
the Light Out” from the sec-
ond act. The piece is sung by
the character Petunia, who
will be played in this staging
by LaChanze, winner of a
CASSANDRA GIRALDO FOR THE WALL STREET JOURNAL (2)
2006 Tony for her star turn in
“The Color Purple.”
It was essentially a cold
read. That meant stops and
starts to weed out wrong
notes that crept into the score
due to errors on the part of
the copyist, the orchestrator
or the musicians.
Mr. Tunick sat at a long ta-
ble at the front of the room
covered with copies of the
score. Jack Viertel, artistic di-
rector of Encores! was also
there, as was Mr. Santiago-
Hudson.
cess was still only about two- At the end of the song, Mr.
thirds completed. The singers Berman asked the players to
wouldn’t join them for a few check the chords in one sec-
more weeks, and it was the tion that didn’t sound quite
first time the orchestra had right.
played the score. “It’s that same thing that
Mr. Berman perched on a happens,” Mr. Tunick said,
stool, tapping his red-soled with good humor. “The second
sneakers as he led the musi- violin should have F flat and E
cians through “Love Turned flat, yes? It’s happened about
12 times already.”
A violin player scribbled in
the margins of her score, and
the orchestra launched once
more into the section.
A few discordant honks
aside, the afternoon went
smoothly. Mr. Tunick and Mr.
Berman shared an easy rap-
port with each other and with
the musicians, some of whom
also play in a swing band led
by Mr. Tunick.
“I’m just blown away,” Mr.
Santiago-Hudson said after
the rehearsal. It was a partic-
ular honor, he said, to be
working with Mr. Tunick, one
of about a dozen people who
have won Emmy, Grammy, Os-
car and Tony awards.
Asked if he was having as
much fun as he appeared to
be, Mr. Tunick paused and
considered.
“The writing part certainly
isn’t,” he said with a laugh.
“But the experience of hearing
what you’ve done come to life
is so satisfying. It’s more than
worth it. It’s necessary.”

HEARD & SCENE

A Business
Degree
LEFT TO RIGHT: PATRICK MCMULLAN; JIMI CELESTE/PATRICK MCMULLAN

That Works
for You.

Harry Belafonte and Joel Grey, left, at Mr. Grey’s book party. Leslie Uggams at a ‘Deadpool’ screening.

Marvels of Musical Theater

When you happen to have
written a book and you also
have a lot of fancy friends, it
must be hard to decide
who’s going to be the one to
throw you a book party.
A couple of years ago,
when the actor Joel Grey
told his friend, the art col-
lector Agnes Gund, whom he
knows from growing up in
Cleveland, that
he was finally
at work on his
memoirs, she
said, “I’m giv-
ing you the
MARSHALL first party,”
HEYMAN Mr. Grey re-
called.
Which is
how he ended up, Monday
night, signing a table full of
copies of his just-published
“Master of Ceremonies” in
Ms. Gund’s art-filled, Park
Avenue pad amid guests like
Ross Bleckner, Bianca Jag-
ger, Harry and Pamela Bela-
fonte, Disney Theatrical’s
Tom Schumacher, the Whit-
ney’s Adam Weinberg and
Ric Ocasek and Paulina
Porizkova.
There will be another
book party for Mr. Grey at
his agent’s apartment on
lower Fifth Avenue on
Thursday.
As he munched on a black
olive cigar—“These are the
greatest hors d’oeuvres”—
the “Cabaret” star explained
that though he’d only started
writing it recently, he really
began his book two decades
ago.
“I’ve always been thinking
about it,” he said, “but I just
decided this is the time.
Still, remembering and re-
membering and then really
remembering broke me up a
few times.”
Friends and colleagues
must have suggested other
titles to him, no?
“Touch of Grey,” perhaps,
a nod to the Grateful Dead?
“83 Shades of Grey,” per-
haps, with a reference to his
age and apologies to E.L.
James. (Plus, there is plenty
of, shall we say, canoodling
in these chapters.)
But no, said Mr. Grey, as
he mulled over a wild mush-
room and Fontina truffle
tartlet. He always wanted to
call it “Master of Ceremo-
nies.”
“It doesn’t only mean the
character in ‘Cabaret,’” he
explained, as a waiter then
offered him caviar in a min-
iature fingerling potato. “It’s
about overcoming a lot of
things happening along the
way to 83.”
We jetted off from Ms.
Gund’s apartment down to
Times Square to catch a fan
screening of “Deadpool,” a
new Marvel movie about a
raunchy kind of super (anti)
hero, played by the Canadian
actor Ryan Reynolds, seeking
revenge on the villain who
tortured him.
On the surface, there The Frank G. Zarb School of Business at Hofstra University is ranked among
wasn’t much in common the nation’s top business schools by numerous organizations and publications,
with Mr. Grey’s book party. including Princeton Review (Best 296 Business Schools and Top 25 online
There were lots of guests MBA programs, 2015); U.S. News & World Report (Best Online MBA programs,
dressed in red costumes like
Deadpool. And Salt-N-Pepa 2015 and Best Part-time MBA programs, 2016); and Bloomberg BusinessWeek
whose song, “Shoop” fea- (Nationwide Full-time MBA programs, 2014).
tures prominently in the
movie, were sitting directly
in front of us. Graduate business degree options include:
But “Deadpool” offers its • Traditional, on-site programs with various concentrations:
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trivia, namely in that the 72- • Full-Time Cohort MBA
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the elderly (and blind) room-
mate of our protagonist. • Strategic Healthcare Management and Strategic Business Management
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me since I was a teenager,”
• Completely Online MBA
said Ms. Uggams. “We’ve
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Ms. Uggams, who was a offering classes online and on-site
fan of Wonder Woman as a
kid, said she was excited to • Saturday Executive MBA
appear in a movie like
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“It’s something different Invest in your future with a graduate business degree from the
and new and wonderful.” Frank G. Zarb School of Business. Learn more during a
In the comic books, her
character is white and a for- School of Business Graduate Programs Information Session,
mer spy. Thursday, February 11 beginning at 6:30 p.m.
“But they kept the es-
sence of her for the movie Visit hofstra.edu/wall to register.
adaptation. How cool is
that? She’s blind and doesn’t
see all the scarring on his
face. They have this incredi-
ble relationship. This love/
hate. I go to all the comic
book movies, but when I was
able to tell my 40-year-old
son, he said, ‘Mom, this is
huge.’”
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
A20 | Wednesday, February 10, 2016
Phil Jackson and the Disappearing Triangle
BY CHRIS HERRING
Last February, long before
his job with the Knicks was in
jeopardy, Derek Fisher fielded
a philosophical question from a
reporter: Would the first-year
coach be comfortable depart-
ing from Phil Jackson’s beloved
triangle offense, even a little, if
the club’s offense continued to
struggle in Year Two?
“I’m not trying to duplicate
or carbon copy exactly what he
did, the same way he didn’t do
that with Tex Winter,” Fisher
said, referring to Jackson and
the mentor widely credited
with introducing the triangle
offense to basketball. “I’m not
worried about it somehow go-
ing against [Jackson’s prefer-
ences]. He hired me to coach
the team, so I have to do what
I think is best for these guys,
and we’re going to evolve in
that fashion.”
A year later, Fisher is done
evolving—at least with the
Knicks.
While nine losses in 10
games and an apparent break-
down in communication were
the final straw for Fisher, the
philosophical concern about
the team’s style of offense fac-
tored in Jackson’s decision,
too. When Jackson became the
Knicks’ president in 2014 and
hired an ex-player with no
coaching experience to lead
them on the floor, it was clear
he was intent on implanting his
own style of play. But recently,
a growing chorus around the
team whispered that Jackson
wasn’t thrilled with Fisher’s
habit of allowing the Knicks to
essentially scrap the triangle in
the second halves of games,
suggesting Fisher didn’t have
total freedom to depart from
his boss’s system.
That issue, perhaps more
than any other, is what leaves
the Knicks at a coaching cross-
roads. Several respected, ac-
complished NBA coaches are
without teams, but almost
none come with a firm grasp
of the mysterious triangle.
Above, Martin Brodeur with Jaromir Jagr, whom he called the best skater he faced. Below, Ken Dryden.
In Newark, Speaking of the Devil
BY ALEX RASKIN
The Devils retired Martin
Brodeur’s No. 30 jersey before
Tuesday’s game against the Ed-
monton Oilers, lifting it into the
Prudential Center rafters along-
side those of Ken Daneyko,
Scott Stevens and Scott Nieder-
mayer, as well as the three
Stanley Cup banners they all
helped win.
Brodeur’s time on the ice
will be remembered for an
NHL-record 125 shutouts (124
with the Devils and one last
season with the St. Louis
Blues), his four Vezina trophies
honoring the NHL’s best goal-
tender, and of course those
three Cups. But a mere scan of
Brodeur’s résumé doesn’t begin
to explain the impact he had in
21 seasons with New Jersey, an
era when the NHL’s style, and
that of its goaltenders, under-
went a revolution.
The league Brodeur faced as
a 22-year old in 1994, when he
lifted the Devils to the Eastern
Conference Finals, was consid-
erably different from the NHL
in 2011-12, when New Jersey
fell to the Los Angeles Kings in
the Stanley Cup Finals. The
game had become more “side
to side” as opposed to “end to
end,” according to Hall of Fame
netminder Ken Dryden, leading
goaltenders to play “deeper and
deeper” in the crease.
Brodeur adapted, but he
never became the kind of
physical fortress in front of
the net that so many goalten-
ders are today.
“He would have to move a
* * THE WALL STREET JOURNAL.
SPORTS
Asked Monday whether he par wing defenders.
needed to have a pre-existing That’s where former Chi-
relationship with the person cago Bulls coach Tom Thibo-
who would eventually get the deau—who, according to a
Knicks’ top job—like Fisher, person familiar with the mat-
whom he coached for nine ter, considers the Knicks’ posi-
years in the NBA—Jackson said tion a dream job—comes in. Of
it wasn’t paramount, but it the last 12 teams Thibodeau
was important. As for whether has been with, either as head
the coach needed a triangle coach or assistant, 11 finished
background, Jackson gave the among the NBA’s top 10 in de-
same answer: not paramount, fensive efficiency, according to
but important. Basketball-Reference.
Jackson said that Knicks as- On Monday, Jackson de-
sistant Kurt Rambis, a longtime clined to say whether he’d be
friend and former assistant in interested in going with Thi-
Los Angeles, would finish out bodeau. “I respect Tom as a
the season as interim coach, coach. He’s a really good
coach,” Jackson said. “But I’m
’There should be a not soliciting.”
Defense aside, the failed ex-
system of play that periment with Fisher should
includes the group,’ open Jackson’s eyes to at least
one important point: “Pick and
Jackson said. roll” should no longer be a
dirty phrase in New York. The
league’s point guards are too
buying time and space to make fluent in it, and too much of
a permanent choice. Then on the NBA benefits from the
Tuesday, he tweeted a long, spacing it creates to discour-
convoluted message about his age that sort of set as much as
process, insisting that he’ll be Jackson does at times. (The
open to ideas outside the trian- Knicks have set the second-
gle, so long as they are team- fewest ball screens in the NBA,
oriented. according to SportVU player-
“There should be a system tracking technology.)
of play that includes the Porzingis, for one, is lethal
ASSOCIATED PRESS (JACKSON); GETTY IMAGES (2)
group,” he wrote. “How that is when left alone in pick-and-
done can include using the [tri- pop scenarios behind the arc.
angle] system of basketball, but He even said the other day
doesn’t exclude other systems that the Knicks “need to do
that include group play.” that a little more,” referring to
There is one candidate, at pick-and-rolls late in games.
least, who appears to fit that And among players with at
mold: Luke Walton, the War- least 25 shot attempts coming
riors assistant who played for off screens this season, Car-
Jackson’s Lakers a decade ago melo Anthony is the NBA’s
and, earlier this season, most efficient player, scoring
stepped in for Steve Kerr to nearly 1.4 points per play
lead Golden State to the best while shooting 62.9%, accord-
start in NBA history. Walton, Clockwise from top: Knicks president Phil Jackson has a big decision to make about the team’s ing to NBA.com.
the son of Jackson contempo- future; former Chicago Bulls coach Tom Thibodeau; and Golden State Warriors assistant Luke Walton. None of this means that
rary Bill Walton, understands Jackson, a 13-time NBA cham-
the triangle, even though the the right idea about him. the Knicks’ biggest problem, sons, according to Stats LLC. pion, has to hire someone out-
Warriors aren’t running a pure Even if Walton is Jackson’s and hasn’t been for quite some The team finally has a de- side his circle, or abandon his
form of it. Kerr was Jackson’s preference, he’d be wise to time. It’s the defense. Since cent rim-protecting system in offense in the process. But if he
first choice for the Knicks job honestly consider several the start of the 2002-03 sea- place with newcomers Kri- refuses to give real consider-
back in 2014, but he wanted other free-agent candidates, son, the Knicks have played staps Porzingis and Robin Lo- ation to a coach who thinks
more autonomy to blend mod- whether or not they have ex- the NBA’s worst defense, sur- pez, so a new coach would ide- differently, he risks limiting the
ern concepts into the triangle— perience using the triangle. rendering 105.8 points per 100 ally bring a superior plan to Knicks to a long era of insular,
alexa
illustrating why Jackson had For starters, offense isn’t plays over those 13-plus sea- help cover for the team’s sub- one-dimensional basketball.
OUT TODAY
ALL
LUXURY
NEW
LOOK!
FASHION
more than his share of NHL
greats. Who was the greatest
(T-B) ASSOCIATED PRESS; SPORTS ILLUSTRATED/GETTY IMAGES
SECTION
skater he ever saw on the ice?
Brodeur played against count-
less Hall of Famers, including
Mario Lemieux and Wayne
Gretzky, but he acknowledged
that he didn’t see those two in
their 1980s primes. Instead, he
named a current NHL player:
43-year-old Florida Panthers
right wing Jaromir Jagr.
“When I was in my prime, STARRING
he was in his,” he said of Jagr,
who scored an NHL-high 25 THE WALKING
career goals against Brodeur,
according to Stats LLC. “That
DEAD’S
was the guy for me, I’d say.”
After insisting that he and
MICHONNE
little more and a little farther his Devils teammates always
to make a save than a lot of felt they were the best squads
goalies, and that’s not an easy of the era, Brodeur nominated
thing to do,” said Dryden, who two others for the best teams
won five Veniza trophies with he ever faced: the 2000-01 Col-
the Montreal Canadiens in the orado Avalanche and the
1970s. “It meant that he had to 2011-12 Kings, both of which
be a lot more athletic than defeated the Devils in the Stan-
alexa
other goalies.” ley Cup Final. “That was a heck the runway
PaGe 8
It was actually Dryden of a team,” Brodeur said of the
whom Brodeur was most ner- Kings, who defeated New Jer-
vous to meet after becoming a sey in six games. The Best of Everything
professional. The strange part After that 2012 series, he february 10, 2016
was, Brodeur’s father Denis had the chance to leave the
was a bronze-medal winning Devils as a free agent, but
goaltender for Team Canada in opted instead to sign a two-
1956 and went on to become year extension to stay in New
the Canadiens’ team photogra- Jersey, a market that seemed
pher. Denis, who died in 2013, to fit the low-key Brodeur per-
was a regular around Mon- fectly.
treal’s team practices and a fa- “It’s more personalized to
miliar face to Dryden. me,” he said of New Jersey, as
“I met a lot of the players,” he greeted several familiar
Brodeur said Saturday at Pru- faces from the Prudential Cen- FREE INSIDE THE
dential Center. “I never got to ter staff. “I’m going to walk
meet Ken Dryden.” around, and I’m going to recog-
In 21 seasons between the nize people. I don’t think bigger 3NYP101
pipes, of course, Brodeur met markets are able to do that.”
 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
BUSINESS & TECH.
Sears to Accelerate
Store Closings
RETAIL | B5
© 2016 Dow Jones & Company. All Rights Reserved.
Viacom Chief Defends Leadership FDA Panel
Approves
Investor concerns
grow as media firm
reports weak results;
shares tumble 21%
BY KEACH HAGEY
AND LISA BEILFUSS
Viacom Inc. Chief Executive
Philippe Dauman fiercely de-
fended his leadership as the
media company on Tuesday
reported quarterly results that
stoked investor concerns and
sent its shares tumbling.
Revenue and profit declined
in the December quarter,
dragged down by weak perfor-
mance in Viacom’s film and
cable TV networks segments.
Disney Stresses ESPN to Allay Cable Fears
Contributions to the Kingdom
SHARE PRICE Disney stock is down 24% since August 3 despite strong
performances at most of its businesses as investors fret about a
$92.32 shrinking subscriber base and rising sports rights costs for ESPN.
Consumer products/
interactive
‘Star Wars’ and ‘Frozen’ toys have led
to a boom in licensing and sales at
Disney stores.
Fiscal quarterly revenue, in billions
$6 billion
4 4
$1.9B s8%
from previous year
2 2
0 0
2013 ’14 ’15
Source: the company Photos: Getty Images (products); AP Images (media); Los Angeles Times/Getty Images (parks); Disney (studios)
BY BEN FRITZ
It was the quarter during
which Walt Disney Co. re-
leased a movie that grossed $2
billion at the box office and
drove $3 billion in merchan-
dise sales. But the biggest
story for the company that
successfully revived “Star
Wars” continues to be sub-
scriber trends at its ESPN ca-
ble network.
Delving into a level of detail
rarely seen at a company
worth more than $150 billion,
Disney Chief Executive Robert
Iger said on a conference call
with analysts Tuesday that
ESPN has experienced an up-
CARLA GOTTGENS/BLOOMBERG
Coke Zero has given Coca-Cola a leg up amid plunging diet-soda sales.
The company also missed ana-
lysts’ expectations for revenue
and lowered its estimate for
growth in subscription fees in
fiscal 2016 to “the low mid-
single digit” percentage range,
down from previous guidance
of “high single-digit” percent-
age growth.
Viacom shares fell 21% to
$32.86 Tuesday, hitting their
lowest point in more than five
years.
During a tense conference
call with Wall Street analysts,
Mr. Dauman, who last week
was named media mogul Sum-
ner Redstone’s successor as
executive chairman, addressed
the criticism of the company
as its stock dropped more
than 50% in the past year.
Media networks
Disney's biggest business has seen
growth slow recently as even
powerhouse ESPN is affected by the
turmoil of the cable TV business.
$6
’16 2013
tick in subscriber numbers in
the past couple of months. The
remarks were part of an effort
to counter the arguments that
ESPN’s business is in decline, a
narrative that has driven the
media giant’s stock down 24%
since August.
“The notion that the [cable]
bundle is experiencing its de-
mise or that ESPN is cratering
in any way from a sub[scriber]
perspective is just ridiculous,”
Mr. Iger said. “We feel great
about the product and we be-
lieve the predictions many
have made are more dire than
they should be.”
Despite the recent growth
Mr. Iger mentioned, ESPN lost
EARNINGS B4 | CAREERS B6 | CROSSWORD B7
* * * * THE WALL STREET JOURNAL.
“Our outlook and the facts
have been distorted by the
naysayers, self-interested crit-
ics and publicity seekers,” Mr.
Dauman said. “We will not be
distracted or deterred as we
build the bright future ahead
of us.”
Mr. Dauman added that
“Sumner and I have a more
than 30-year history side-by-
side building his media em-
pire.”
Mr. Redstone, who Viacom
executives said was listening
in on the call from Los Ange-
les, is still the controlling
shareholder of Viacom, with
80% of voting shares. He also
is the controlling shareholder
of CBS Corp.
The 92-year-old mogul is
Theme parks
Strong growth at the two domestic
theme parks has been offset by
challenges in Paris and Hong Kong
and Shanghai’s costly construction.
$6.3B s8% $6
4 $4.3B s9%
2 2
0 0
’14 ’15 ’16 2013
subscribers in the quarter
ended Jan. 2 at the same time
that programming costs rose,
due to costly deals for the
rights to sports such as pro-
fessional and college football.
ESPN’s costs also rose thanks
to the timing of the college
football playoffs, which oc-
curred in the company’s fiscal
first quarter, ended Jan. 2 this
year, but were in the fiscal
second quarter a year earlier.
Operating income for Dis-
ney’s television business, of
which ESPN is the largest seg-
ment, fell 6% in the quarter to
$1.41 billion, while revenue
rose 8% to $6.33 billion. Ex-
cluding the timing of the col-
Coca-Cola Fights Hard
For the Rights to ‘Zero’
BY MIKE ESTERL
Who knew “zero” could be
so valuable?
Last month, Canada rejected
Coca-Cola Co.’s attempt to
trademark the rights to the
common English word for its
diet drink brands—including
Coca-Cola Zero, Sprite Zero and
Powerade Zero—after rival
PepsiCo Inc. opposed the move.
The U.K. blocked a similar
attempt by Coke in 2008, also
following a challenge by Pep-
siCo.
Now the U.S. Patent and
Trademark Office is gearing
up to rule nearly 13 years after
Coke first tried to register
“zero” in the U.S., triggering a
2007 challenge from Dr Pepper
Snapple Group Inc., which also
has a diet drink named Zero.
Arguments wrapped up in
December, after Coke and Dr
Pepper logged hundreds of
pages of arguments and exhib-
SolarCity’s Stock Drops
33% on Dark Outlook
EARNINGS | B4
being sued by his former com-
panion Manuela Herzer, who
claims Mr. Redstone lacked
mental capacity when he re-
moved her as his health-care
agent, the person who would
make decisions on his health
care if he is deemed incapaci-
tated.
In a court filing Tuesday,
Mr. Redstone charged that Ms.
Herzer’s true motivations are
monetary—because he also
wrote her out of his will, de-
priving her of a $70 million in-
heritance.
Some of Viacom’s critics on
Wall Street have argued the
company’s board isn’t suffi-
ciently independent and that
replacing Mr. Dauman, who is
Please see VIACOM page B6
Film studios
Blockbuster franchises like ‘Frozen,’
‘Star Wars’ and Marvel have more
than outweighed infrequent duds
like ‘The Finest Hours.’
$6
4 ents.
’14 ’15 ’16 2013
lege football playoffs and the
rising value of the U.S. dollar,
television operating income
growth would have been close
to revenue growth, said Dis-
ney’s Chief Financial Officer
Christine McCarthy.
ESPN ad revenue grew a ro-
bust 25% in the quarter from a
year ago. Ms. McCarthy said
the growth rate would have
been 14%, excluding the timing
of the college football playoffs
and the absence this year of
Nascar.
Separately, ESPN and Draft-
Kings Inc. have unwound their
exclusive advertising relation-
ship. The deal, worth $250
million, would have allowed
its in 170 filings with the U.S.
trademark office.
A ruling could come before
the summer, based on past
trademark registration dis-
putes, say people familiar with
the case.
6%
The increase in sales volumes
for Coke Zero and the decrease
in Diet Coke sales last year.
If Coke prevails, it could
more easily sue imitators. If it
loses, it could face an on-
slaught of competitors such as
Dr Pepper’s Diet Rite Pure Zero,
who take the name and dilute a
brand that has turned out to be
a star for Coke in a game that
has been rough going.
Coke Zero has given Coke a
leg up amid plunging diet-
soda sales industrywide as
Wednesday, February 10, 2016 | B1
Earnings Drop
Viacom's net profit or loss
$800 million
1Q 2016: $449M
600
400
200
0 panies developing lower-cost
–200
FY 2014 ’15
Note: Fiscal year 2015 ended Sept. 30
Source: the company
THE WALL STREET JOURNAL.
$2.7B s46%
’14 ’15 ’16
THE WALL STREET JOURNAL.
DraftKings to be the exclusive
daily fantasy site that adver-
tises on ESPN in 2016. The end
of the exclusivity means that
ESPN will now be able to sell
ad time to DraftKings’ compet-
itors, a person familiar with
the matter said.
Much of the recent modest
uptick in ESPN subscribers
came from so-called skinny
packages that have fewer
channels and are aimed at
cost-conscious young consum-
ers, said Mr. Iger. He specifi-
cally pointed to gains from
Dish Network Corp.’s Sling
TV. He said the company is
pushing aggressively to in-
Please see DISNEY page B2
consumers try to avoid artifi-
cial sweeteners. Some studies
have linked the sweeteners to
cancer, but health authorities,
including the U.S. Food and
Drug Administration, have
ruled them to be safe.
While many drinkers avoid
brands with the word “diet,”
the fallout hasn’t hit “zero” as
hard, even though such drinks
also are often artificially
sweetened.
In fact, Coke said Tuesday
that global sales volumes of
Coca-Cola Zero rose 6% while
Diet Coke fell 6% in 2015.
The beverage giant also re-
ported that revenue fell 8% to
$10 billion in the fourth quar-
ter from $10.87 billion a year
earlier, dragged down by
weaker foreign currencies and
six fewer selling days.
Profit rose 61% to $1.24 bil-
lion from $770 million after
2014 results were hurt by re-
Please see COKE page B2
Knockoff
Of Pricey
J&J Drug
BY PETER LOFTUS
A U.S. regulatory panel vote
on Tuesday is a win for com-
copies of pricey biotechnology
drugs, but it could be a while
’16 before patients see them.
An advisory panel to the
Food and Drug Administration
voted to recommend the
agency approve the sale of a
knockoff version of Johnson &
Johnson’s arthritis drug Remi-
cade, which had U.S. sales of
$4.45 billion last year. The
copy was developed by Cell-
trion Inc. and licensed to
Pfizer Inc.
But the path to market for
copies of Remicade and other
top-selling biotech brands
could be complicated. Drug-
makers including J&J, AbbVie
Inc. and Amgen Inc. are at-
tempting to block such copies,
known as “biosimilars,” by tak-
ing out new U.S. patents to ex-
tend their monopolies poten-
tially into the 2020s and ’30s.
That could delay the entry of
competing knockoffs well be-
yond when the FDA clears them
for sale, and beyond the expira-
tions of the branded drugs’
original patents, which are due
in coming months and years.
Many of the newer patents
cover drug-manufacturing pro-
cesses and methods of using
the drug to treat certain dis-
eases, rather than the compo-
sition of the drug itself, which
is covered by the original pat-
AbbVie, which is facing a
looming threat of competition
for the arthritis treatment Hu-
mira, said it has taken out
about 70 patents for the drug,
one of the largest patent port-
folios ever assembled for a sin-
gle drug. The drug’s primary
U.S. patent is due to expire in
December, but AbbVie says the
additional patents should keep
copycat versions of Humira off
the U.S. market until at least
2022, and possibly longer.
Most of the later-expiring
Humira patents were issued by
the U.S. Patent and Trademark
Office in the past two to three
years, more than a decade after
the drug was originally ap-
proved for sale in the U.S. in late
2002. AbbVie Chief Executive
Please see FDA page B2
Sanofi’s
Diabetes
Approach
Stumbles
BY DENISE ROLAND
AND NOEMIE BISSERBE
The history of inhalable in-
sulins for diabetes care is full
of disappointments, but
Sanofi SA thought a new ap-
proach would turn all of that
around. It was wrong.
The French drugmaker last
month ended a licensing pact
with MannKind Corp. for the
rights to sell the insulin in-
haler Afrezza, saying that de-
spite substantial marketing ef-
forts, the product was unlikely
to reach even the lowest pa-
tient levels anticipated. The
product, launched in the U.S.
in February last year, notched
just €7 million ($7.8 million) in
sales in 2015, as safety con-
cerns and reimbursement is-
sues damped uptake.
Sanofi’s bet on inhaled insu-
lin shows the strain pharmaceu-
tical chiefs are under to acquire
innovative products when their
own pipelines aren’t delivering.
Please see SANOFI page B2
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B2 | Wednesday, February 10, 2016 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS NEWS

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A-B
AbbVie.........................B1
Altria Group................B5
Amazon.com ............... B3
American International
Group.........................C3
Amgen.........................B1
Anadarko Petroleum...C4
Anglo American..........B7
Anglo American
Platinum ................... B7
Barclays.......................A1
BB&T............................C2
BNP Paribas..............A14
Boston Properties.......C6
Bovis Foods.................B2
Burberry Group...........B5
C-D
Canadian Pacific
Railway ..................... B7
Celltrion.......................B1
CenturyLink.................A2
Chevron........................C4
CKE Restaurants.........B4
Coca-Cola.....................B1
Costco Wholesale.......B6
Credit Suisse Group...A1
Deutsche Bank .. A14,C12
Digital Arts Experience
.....................................D3
Discovery
Communications.......B6
Dish Network..............B1
G
Gannett.......................B3
General Electric...........C3
General Mills...............B2
Glencore ...................... B7
Goldman Sachs Group
............................. A14,C2
Goodyear Tire & Rubber
.....................................B4
H-I
Hyundai Merchant
Marine.....................C12
Ilex...............................C6
Irell & Manella............B2
ITC Holdings................B3
J Spunk.........................C12
J.C. Penney..................B5
Jinhui Shipping &
Transportation........C12
Johnson & Johnson....B1
Journal Media Group..B3
J.P. Morgan ................. C6
J.P. Morgan Chase......C3
K-L
Kayne Anderson Real
Estate Advisors........C6
Kroger..........................B6
Levy Group..................B5
Lone Star Overnight...B3
Los Angeles Times.....B3
M-O
MannKind....................B1
Procter & Gamble..B2,D1
Prudential Financial....C3
Related........................C6
Restaurant Brands
SANOFI
International.............B4 Continued from the prior page
Reynolds American.....B5 It came at a tough time for the
Rio Tinto ..................... B7 company’s all-important diabe-
RKI Exploration &
Production.................B5 tes franchise, which has been
S forced to offer deeper discounts
Salesforce..................C12 on its products amid pricing
Sanofi..........................B1 pressure from U.S. payers.
Scripps Networks On Tuesday, Sanofi said sales
Interactive.................B6 of its diabetes drugs in the U.S.
Sears Holdings............B5
SolarCity......................B4
slumped 25% at constant ex-
change rates to €1.1 billion in
T the fourth quarter, dragging
world-wide revenue from the di-
Terra Energy Partners B5
Textio .......................... D3 abetes franchise down 13% to
Time Warner...............B6 €1.9 billion. That weighed on to-
Tompkins International
.....................................B3
tal sales, which came in at €9.3
Tribune Publishing......B3 billion, a drop of 1.6% on a con-
T. Rowe Price Group...C6 stant currency basis; including
Twitter.........................C1 currency effects, revenue rose
21st Century Fox ........ C4
2.3%. Profit slid 75% to €334
U-V million, while business net in-
UniCredit.....................A1 come, which excludes certain
United Parcel Service
one-time items, fell 7% to €1.7
............................... B3,B4
USA Today...................B3 billion.
Sanofi Chief Executive Oliv-

DP World...................C12
Dr Pepper Snapple
Group.........................B1
DryShips....................C12
E-F
Electronic Arts............B2
Ernst & Young.............B7
Fairholme Capital
Management.............B5
FedEx...........................B3
Fidelity Investments .. C6
Fortis...........................B3
McDonald's..................B4
MetLife........................C3
Microsoft.....................C1
Miller Brewing............B2
Modsquad....................C6
Morgan Stanley .......... C2
Norfolk Southern........B7
OneSource Virtual ...... C6
OTG EXP......................C3
P-R
PepsiCo........................B1
Pfizer......................B1,B2
Vedanta Resources.....B7
Viacom ............ B1,C4,C12
W-Y
Walt Disney................B1
Wei-guan Construction
...................................A14
Wells Fargo.................C2
Wendy's ................. B4,C4
WeWork.......................C6
Whole Foods Market..B6
Workday .................... C12
WPX Energy................B5
Yahoo...........................C1
DISNEY-PIXAR/ASSOCIATED PRESS
ier Brandicourt had been down
the inhaled-insulin path be-
fore. Nearly 10 years ago, he
presided over the multibil-
lion-dollar flop of insulin in-
haler Exubera as head of met-
abolic and cardiovascular
medicine at Pfizer Inc. Shortly
Revenue at Disney’s movie business jumped 46% in the quarter. Above, a scene from ‘Inside Out.’ after, Novo Nordisk A/S and
Eli Lilly & Co. shelved ad-

INDEX TO PEOPLE DISNEY sparked a 46% rise in revenue

A H
Abe, Shinzo.................C1
Aggarwal, Monica.......B5
Albanese, Tom............B7
B Herbert, Bill ................ C3
Bacon, Louis................C8
Bailenson, Jeremy......R5
Bake, Christopher.......C3
Baskerville, Michael ... C8
Berger, Cathy..............C2
Berkowitz, Bruce........B5
Bernasconi, Paolo ....... C3
Blankfein, Lloyd...A14,C2
Brainard, Lael..............C2
Bryant, Andy...............R5
C Kroenke, Stan ............. C8
Collis, Mike.................A1
Collyer, Rosemary M. . C3
Cordray, Richard..........C2
Cryan, John........A14,C12
Cutifani, Mark.............B7
D Levie, Aaron................R4
Daniels, Chris..............B5
Dauman, Philippe........B1
DiFucci, John.............C12
E-G
Elon Musk...................B4
Hawley, Weldon..........C8
Hayakawa, Hideo........C1
Hayden, Michael.........R4
I-J
Icahn, Carl ................... C3
Iger, Robert.................B1
Jackson, Robert .......... C3
K ESPN has 92 million subscrib-
Kameoka, Yuji.............C4
Kessler, Gladys ........... B5
King, Kelly...................C2
Kleinrock, Leonard......B5
Kodama, Yuichi ........... C1
Kuroda, Haruhiko........C1
L continued concerns about the
Lampert, Edward........B5
Leadbetter, Joel..........C8
Lepore, Dawn..............R1
M-N
Mackey, John..............B6
Macris, Achilles .......... C3
Mason, Hilary ............. R1
McCarthy, Christine....B1
Nagai, Koji...................C4
Noguchi, Yoshi ............ C1
O nels in similar offerings.
O’Keefe, Eric ............... C8
Ozment, Andy.............R4
P the recent positive trend in
Pick, Edward................C2
Pommerehn, David......C2
R last fiscal year in October,
Raymond, John.........A14
Rive, Lyndon ............... B4
Robb, Walter...............B6
S
Santi, Renato..............C3
Shrewsberry, John......C2
Soncini, Luca...............C3
Soultanian, Richard .... C1
Stubbs, David..............C4
Sundaresh, Harish ...... C3
U
Uechtritz, Bernie.........C8
W movie and consumer products
Waggoner, W.T............C8
Weigend, Andreas......R1
Williams, Robert.........C4
Wilson-Rich, Noah......D2
Z health intelligence at Diabetes
at the studio to $4.28 billion
and an 86% increase in operat-
ing income to $1.01 billion—
Continued from the prior page the first time Disney’s movie
clude ESPN and its other chan- business has earned more than
$1 billion in a quarter.
However the CEO said he Consumer products and in-
wasn’t ready to predict that teractive media revenue grew
8% to $1.91 billion and operat-
subscriber numbers would con- ing income increased 23% to
tinue. As of the end of Disney’s $860 million thanks in large
part to Star Wars merchan-
dise, including a hit video-
ers in the U.S., the company game from Electronic Arts
said in a regulatory filing, Inc. At more than $3 billion,
down from 95 million the prior world-wide sales of Star Wars
year and 99 million in 2013. merchandise last quarter were
Disney shares were down more than three times as high
3.5% to $89.10 in after-hours as one year ago.
trading Tuesday, reflecting Digital downloads and DVD
sales of the original six “Star
future of cable. Wars” films also increased last
Nonetheless, “Star Wars: quarter, leading to an increase
The Force Awakens” drove a in home-entertainment reve-
strong quarter for Disney’s nue for Disney’s studio, a rar-
ity at time when that overall
businesses. Though it came out business has been declining for
just two weeks before the end years throughout Hollywood.
of the fiscal year, the movie Mr. Iger said consumer
products sales were surpris-
ingly strong in some markets
where the movie “didn’t per-
form as we had hoped.” Among
vanced plans to develop their
own inhaled products.
The failure of Exubera was,
in large part, one of design:
the countries where “The Force Diabetes patients were reluc-
Awakens” wasn’t a blockbuster tant to use the unwieldy de-
hit as in the U.S. were China, vice in public as it resembled a
Russia and South Korea. bong for smoking marijuana.
With new “Star Wars” mov- But others saw more funda-
ies scheduled to come out ev- mental reasons to scrap the
ery year, Mr. Iger said he idea. Novo Nordisk said at the
didn’t believe the first sequel time that it couldn’t overcome
to the science-fiction franchise the fact that inhaled insulin
in a decade fueled a one-time wouldn’t eliminate the need
surge in revenue. “We think for injections. That is because
we’re not seeing something ab- only short-acting insulin,
errational now, but the estab- which is taken as a boost at
lishment of an old franchise at mealtimes, could be adminis-
a much higher level,” he said. tered via an inhaler. Most dia-
At Disney’s theme parks betes patients on insulin—
business, 10% growth in atten- those with Type 1 or advanced
dance and 7% growth in spend- Type 2—also take a long-act-
ing at domestic theme parks ing version to provide a con-
led to a 9% increase in revenue stant minimum level, which
to $4.28 billion and 22% in- would need to be injected.
crease in operating income to Furthermore, doctors are
$981 million. cautious about prescribing in-
—Alexandra Berzon and haled insulin because of wor-
Shalini Ramachandran ries it could lead to lung can-
contributed to this article. cer in the long term, said
Simon O’Neill, director of

Frederick, Randy ......... C4
Griffith, Chris..............B7
Minami, Takeshi..........C4
Ming-hui, Lin ............ A14
COKE
Zittrain, Jonathan ...... B5 UK, a nonprofit patient-advo-
cacy group. While there is no
evidence that inhaled insulin

FDA though the safety and efficacy

of Celltrion’s product was
tested only in patients with
two of the diseases.
Continued from the prior page
structuring charges and a
large Venezuelan write-down.
causes lung cancer, other so-
called growth hormones have
been linked to the disease.
Despite the industrywide
Continued from the prior page The FDA isn’t required to Diet Coke is still the world’s retreat from inhaled insulin,
Richard Gonzalez told analysts follow the votes of its advisory top-selling diet cola with a former Sanofi CEO Christo-
on a conference call in January panels, but it often does. 4.8% share of the $168 billion pher Viehbacher believed the
the patents are based on Abb- A final decision on Cell- soda market, but Coke Zero’s advantages of inhaled insu-
Vie’s innovation in developing trion’s product is expected share has grown from 0.5% to lin—speedier delivery to the
Humira, and that the company later this year. 3% during the past decade, ac- bloodstream and a reduced de-
plans to defend them. But even if the FDA ap- cording to Euromonitor. pendence on needles—meant
An AbbVie spokesman said proves the Celltrion biosimilar, While silver-can Diet Coke it was still worth a bet. In
the patents represent work by it is unclear how soon it could traditionally has been marketed
AbbVie scientists dating to the reach the market. Although to women, black-can Coke Zero
late 1990s, which “continues to J&J hasn’t secured as many is marketed more heavily to
Sanofi said sales of
evolve.” patents for Remicade as Abb- men. Both are sweetened with its diabetes drugs in
The aggressive patent effort Vie has for Humira, it has se- aspartame but Coke Zero also
reflects the hefty sales and cured a number of additional has acesulfame potassium, an-
the U.S. fell 25% in
SEONGJOON CHO/BLOOMBERG NEWS

profits at stake for the manu- Remicade patents that could other artificial sweetener, giv- the fourth quarter.
facturers of biotech brands, tie up competitors. ing it a slightly different taste.
and could pose a “big barrier” A J&J spokesman said the In the filings, Coke said that
to biosimilars, said Chris Ray- company has a number of pat- “zero,” when used as part of a 2014, he agreed to pay Mann-
mond, a biotech analyst with ents related to Remicade and beverage brand, is “exclusively Kind up to $925 million,
Raymond James. Humira, the “we will continue to defend in- associated” with its products mostly in milestone payments,
top-selling prescription drug tellectual property” for the because of “extensive advertis- for the rights to market the
in the world by sales, gener- drug. At Tuesday’s FDA panel ing, promotion and sales.” When recently approved Afrezza. By
ated $14 billion in global sales meeting, a J&J official urged consumers see “zero” on a bot- ending the agreement when it
last year, more than 60% of the agency not to approve tle or can, they think of its com- Coke has challenged other companies’ use of ‘zero’ in brands. did, Sanofi capped its 2015
AbbVie’s total revenue. Celltrion’s product to treat in- pany-owned brands, it argued. losses at roughly €200 million,
The volume of patents also flammatory-bowel diseases un- It may, however, be a tough age brands not owned by sitioning as a fitness drink, according to the company.
reflects the complex nature of til results of studies comparing argument to win. Coke, including Monster En- not for legal reasons. Analysts have predicted
biotech drugs, which are typi- it with Remicade in patients If Coke is permitted to regis- ergy Zero Ultra, Virgil’s Zero Legal concerns, however, that without the support of
cally manufactured in living are available. ter “zero” with exclusive rights, and Arnold Palmer Zero. factored into PepsiCo’s deci- Sanofi, MannKind would end
organisms rather than through J&J sued Celltrion in fed- authorities “will have effectively When it comes to beverages, sion to stick with the name up in bankruptcy. Nonetheless,
the chemical synthesis used eral court in Massachusetts granted [the company] a mo- “zero” is just shorthand for zero Pepsi Max instead of Pepsi the Valencia, Calif., company’s
for regular pills. “It’s just a lot last year, alleging the Celltrion nopoly to use a common Eng- calories, Dr Pepper said. Reed’s Zero when it relaunched the new CEO, Matthew Pfeffer, has
more complicated to make a drug would infringe upon six lish word in its common English Inc. offers a line of Virgil’s Zero diet cola in the U.S. in 2009, vowed it is “here to stay.” Af-
biologic. That leads to more patents for Remicade, includ- meaning,” Dr Pepper said in a sodas with various flavors such according to people familiar ter the break with Sanofi, he
patents,” said Zachary Silber- ing one that was issued in 2014 filing with the U.S. Patent as Virgil’s Zero Root Beer. with the matter. told investors he planned to
sher, a patent attorney with 2009 and expires in 2027. The and Trademark Office. “I think Coke will have a PepsiCo opposed Coke’s cut the price of Afrezza and
Markman Advisors, which pro- patent covering the drug’s Several consumer-goods difficult time” securing exclu- trademark application for find a new partner for the
vides intellectual-property composition is due to expire in companies have succeeded in sive rights because of third- “zero” in the U.K. in 2007, say- product, adding that Mann-
analysis to investors. 2018. Remicade first hit the registering U.S. brand trade- party use, said Jane Shay ing the word was “devoid of Kind had enough cash to get
The FDA last year approved U.S. market in 1998. Celltrion marks for combinations of Wald, who chairs the law firm distinctive character,” even as “comfortably into the second
the first biosimilar—a version denied the infringement alle- common words. Irell & Manella LLP’s trade- Coke argued “zer” was in a half of the year.”
of Amgen’s Neupogen drug for gations. General Mills Inc. won ap- mark practice. She isn’t in- distinctive white font and “o” Existing worries among
cancer chemotherapy pa- Pfizer, which holds the U.S. proval for “Kitchen Favorites” volved in the case. was a stylized “vortex device.” doctors over links with lung
tients—using new criteria aris- marketing rights to the Cell- in 2012 for packaged-meal kits Dr Pepper and PepsiCo de- A regulator ruled in Pep- cancer were compounded by
ing from a provision of the trion biosimilar, said last week and “Shake-N-Pour” in 2013 clined to comment beyond siCo’s favor in 2008, noting the U.S. Food and Drug Admin-
2010 Affordable Care Act it was moving ahead with for baking mixes. Procter & their publicly available filings “zero” is “a well-known dic- istration’s warning that in-
aimed at supporting a biosimi- plans to begin selling the Gamble Co. got the green light opposing Coke’s applications. tionary word with a clear haled insulin could cause
lar market. Now it is consider- product this year. for “Need Sleep?” sleep-aid Coke said it would sell “zero” meaning.” breathing difficulties in people
ing additional biosimilar appli- The patent blitz has forced products in 2013 and “Fresh brands regardless of the ruling In 2012, the U.S. Patent and with respiratory problems.
cations, including those for developers of biosimilars to Outlast” bath soaps in 2015. and declined further comment Trademark Office issued an The agency also required
some of the biggest-selling beef up their own intellectual- Registering a single word, beyond its application filings. opinion that Coke’s use of the MannKind to run a follow-on
biotech brands. property capabilities. “I have however, is much tougher. Coke has challenged other term was “substantially exclu- trial to determine whether
The FDA panel’s vote Tues- someone in my office who’s Miller Brewing Co. tried companies’ use of “zero” with sive” after a Coke-sponsored Afrezza did increase patients’
day in favor of a biosimilar Re- tracking 250 different patents but failed to secure trade- trademark authorities, includ- survey in 2008 showed 52% of cancer risk.
micade bodes well for future or patent applications for Hu- mark protection for “lite” or ing Bovis Foods LLC’s “Mar- consumers associated “zero” Further, most payers in the
biosimilars because it could mira,” Denny Lanfear, chief ex- “light” beer in the 1970s after garita Zero” brand. Bovis filed with the company. U.S. have Afrezza in a “tier
signal the FDA will use looser ecutive of biosimilar developer launching Miller Lite, the its trademark application in Last month, though, the Ca- three” reimbursement cate-
criteria for marketing approval Coherus BioSciences Inc., said first national reduced-calorie 2011; the case is ongoing. nadian Intellectual Property gory. That generally comes
than some people expected, at an investor conference in beer. The U.S. beer market PepsiCo launched “Propel Office rejected Coke’s trade- with higher copays and re-
analysts say. The panel recom- January. soon was flooded with com- Zero” in 2011. It shortened the mark application, ruling quires physicians to explain
mended by a vote of 21-3 that The patent litigation sur- petitors and Bud Light even- brand name to “Propel” in “zero” simply relayed caloric why they prescribed Afrezza
the Celltrion product be ap- rounding biosimilars is likely tually displaced it as the 2014, with “zero calories” in information. Coke had argued over standard injected insulin.
proved to treat all of the dis- to be costly and complicated. leading brand. small print. It says it changed “zero” could refer to many Sanofi also priced Afrezza at a
eases that brand-name Remi- —Jeanne Whalen In an opposition filing, Dr the name because “zero” things, including no alcohol, premium to its injectable
cade is approved to treat, even contributed to this article. Pepper listed 32 “zero” bever- didn’t fit with the brand’s po- sodium or animal products. counterparts.
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BUSINESS NEWS

Gannett Mulls Parcel Service Power Company

Newspaper company
is looking to use its
Fortis Buys ITC
carriers and trucks to
deliver variety of parcels For $6.9 Billion
BY LAURA STEVENS BY CASSANDRA SWEET and sell power to retail cus-
AND LUKAS I. ALPERT AND AUSTEN HUFFORD tomers. Building big, new
transmission projects can be
Newspaper giant Gannett U.S. electricity-transmis- difficult, because of opposi-
Co. is exploring the parcel-de- sion company ITC Holdings tion from landowners.
livery business as it examines Corp. said on Tuesday it plans ITC has seen its cash
how to make the most of its to sell itself to Canadian util- stockpiles decline. Through
fleet of paper carriers and de- ity operator Fortis Inc. for the first nine months of 2015,
livery trucks, according to peo- about $6.9 billion in cash and the company had cash of
ple familiar with the matter. stock. $24.2 million, down from
Prompted by the e-com- ITC shareholders will re- $27.7 million as of Dec. 31,
merce boom, Gannett reached ceive $22.57 in cash and 0.752 2014.
out to parcel-industry consul- Fortis share for each ITC Fortis said it intended to
tants as recently as December. share. Based on Fortis’s clos- retain all ITC employees and
It also held meetings and pre- ing price Monday in Toronto, that ITC would continue as a
BLOOMBERG NEWS

liminary discussions with Am- the deal values ITC at around stand-alone operation at its
azon.com Inc. as it explores $44.90 a share. When the Novi headquarters.
delivery possibilities, accord- deal closes, Fortis said ITC Fortis expects ITC to add
ing to one of those people. shareholders will own about about 5% to its bottom line in
“We are always looking for 27% of Fortis common shares.
opportunities to do back hauls Gannett has one of the biggest distribution networks of any newspaper company in the U.S. St. John’s, Newfoundland-
or deliver packages as we are based Fortis, which owns reg-
ITC needs a bigger
out on the roads,” that person making the change, according to pursue the business. An Gannett Chief Executive ulated utilities in Canada and partner to scale up
said. to former and current parcel- Amazon spokeswoman de- Robert Dickey has said the the U.S. that serve 3 million
But while parcel delivery is industry executives. clined to comment. company aggressively would customers, values Novi,
its business, CEO
an option Gannett is consider- They would need to develop If newspaper publishers pursue acquisitions of larger- Mich.-based ITC for its large Joseph Welch said.
ing, it faces a major obstacle: the ability to sort, track and such as Gannett could over- market papers following Gan- footprint in the U.S. Midwest,
The company would lose cer- deliver packages on time, all come the hurdles, they would nett’s spinoff last year from and for its potential to ex-
tain tax breaks if its carriers of which are capital- and la- have the advantage of both the broadcasting company pand, Fortis Chief Executive the first year following the
were to deliver a significant bor-intensive processes. lower delivery costs and a now known as Tegna Inc. Barry Perry said during a acquisition. ITC, which owns
number of packages. Tribune “It’s not a trivial thing to huge network—something that The newspaper company’s conference call with analysts. about 16,000 miles, or 25,000
Publishing Co. scrapped a add that to newspaper deliv- could pose competition to size would be a major advan- ITC, for its part, needs a kilometers, of transmission
similar idea after briefly test- ery from a standpoint of infra- United Parcel Service Inc. tage in convincing retailers bigger partner to scale up its lines that crisscross the U.S.,
ing package delivery with Am- structure development, sorta- and FedEx Corp. and e-commerce companies to business, ITC’s Chairman and will beef up Fortis’s U.S. foot-
azon in the fall when it discov- tion and making that all While print subscriptions hire it for deliveries, as long CEO Joseph Welch said dur- print, said Mr. Perry.
ered the tax breaks amounted work,” said Denny McKnight, have fallen in recent years, ev- as its service was up to par, ing the call. Fortis, which also will as-
to millions of dollars a year. president of supply chain ad- ery major city neighborhood said Rick Jones, chief execu- Shares of ITC fell 1.9% on sume about $4.4 billion in ITC
Depending on who owns viser Tompkins International, still has newspaper trucks out tive of Texas-based regional Tuesday to $38.65 in 4 p.m. debt, said it would apply to
the delivery fleet, either out- who has consulted on these is- making early-morning deliver- parcel carrier Lone Star Over- New York Stock Exchange; list its shares on the New
side contractors or newspa- sues. ies, putting them close to e- night, known as LSO, and a Fortis shares fell more than York Stock Exchange and will
pers receive significant federal Still, some newspapers are commerce customers and former UPS executive. 10% to 37.14 Canadian dollars keep its shares listed on the
tax breaks related to paper de- delivering parcels in a limited making them a potentially at- Like all print publishers, ($26.72) on the Toronto Stock Toronto Stock Exchange.
liveries. manner. tractive option for shippers. Gannett has struggled with de- Exchange. The boards of both compa-
Those, however, are contin- The Los Angeles Times Gannett has one of the big- clining revenue as readers and The acquisition comes nies have approved the deal,
gent on a minimum of 90% of currently hands off a small gest distribution networks of advertisers increasingly mi- about 10 weeks after ITC told but regulatory and share-
a carrier’s income coming number of packages to the any newspaper group in the grate online, and it is eager to investors it was looking into holder approvals are still re-
from delivering papers. De- Gannett-owned Desert Sun in country, owning 92 daily, find new sources of revenue. strategic alternatives, includ- quired. Fortis expects the deal
liver too many packages, and Palm Springs, Calif., along mostly small- and medium- In the third quarter, Gan- ing a possible sale. to close in late 2016.
those tax breaks go away— with newspapers for delivery, size market newspapers, as nett reported an 8.6% decline The U.S. power industry Originally a unit of DTE
something Tribune determined according to one of the people well as its nationally distrib- in operating revenue to $701.2 has been under strain, amid Energy Co., ITC was sold in
would be too big a loss to off- familiar with the matter. uted flagship USA Today. million. That was driven low electricity prices and 2003 for about $610 million
set with the added package A Gannett spokeswoman Late last year, it made a mostly by a drop of more than lackluster power demand. to a group that included New
revenue. confirmed the company has deal to acquire Journal Media 13% in advertising dollars as ITC, which primarily builds York private-equity firms KKR
Newspaper companies such made some preliminary inqui- Group, which would add an- increased digital advertising and runs transmission lines, & Co. and Trimaran Capital
as Gannett or Tribune would ries into parcel delivery but other 15 dailies to its roster, as revenue has failed to offset competes against utilities Partners LLC. It went public
face other logistical hurdles in said it has no imminent plans well as several weeklies. declines in print advertising. that own transmission lines in 2005.

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B4 | Wednesday, February 10, 2016 * * THE WALL STREET JOURNAL.

EARNINGS

VenezuelaSaps
GoodyearResults
BY JEFF BENNETT
Goodyear Tire & Rubber
Co. sold more tires and gener-
ated more profit from its oper-
ations than analysts expected,
but the company booked a net
loss for the fourth quarter af-
ter taking a one-time write-
down.
Investors sent the com-
pany’s shares soaring 4.2% to
$27.45 in Nasdaq trading Tues-
day, as they focused on Good-
year’s operating income, which
jumped in all regions as con-
sumers bought higher-end
tires. The company also bene-
fited from the lower costs of
its oil-based raw materials.
Goodyear, based in Akron,
Ohio, also boosted its stock-re-
purchase program by another
$650 million bringing the total
to $1.1 billion.
The problem spot was Latin
America, where Goodyear re-
ported a 30% drop in operat-
ing profits and took a $646
million charge against its op-
erations in Venezuela.
Venezuela has been a major
theme for this earnings season
as auto makers and their sup-
pliers continue to wrestle with
automotive production that
has been cut almost in half.
Although some companies
have abandoned the country,
Wendy’s
Boosted
By $4 Meals
lier quarter. The results ex-
ceeded analyst estimates of 75 BY JULIE JARGON
cents a share. AND JOSHUA JAMERSON
Revenue fell to $4.06 billion
from $4.36 billion, partly be- Wendy’s Co. reported
cause of a currency hit that fourth-quarter profit that beat
reduced results by $339 mil- expectations as the fast-food
lion. The company shipped chain operated fewer of its own
42.1 million tires during the restaurants and attracted con-
quarter, beating the 40.4 mil- sumers with $4 meals.
lion analyst estimate. Wendy’s said it expects
Goodyear posted a loss of same-store sales growth in
$380 million, compared with a 2016 of about 3% in North
profit of $2.13 billion a year America, above the projection
earlier. The fourth-quarter of 2.5% by analysts surveyed by
2014 results also included the Consensus Metrix. The com-
release of a $2.2 billion U.S. pany also projected adjusted
tax valuation, a one-time, non- earnings between 35 cents and
cash benefit to earnings. 37 cents a share, in-line with
The company’s operating the consensus view of 36 cents
profit jumped 16% to $266 by analysts polled by Thomson
million in North America, even Reuters.
as it sold fewer tires in the re- Like many other restaurant
gion overall because of the chains, including McDonald’s
sale of a divisions. Corp. and Burger King, a unit of
The increase was driven by Restaurant Brands Interna-
lower raw material costs and tional Inc., Wendy’s has sought
sales of its more expensive a more stable cash flow and
tires. The company sold 15.4 higher profit by selling its com-
million tires in the latest quar- pany-owned restaurants to
ter, compared with 16 million franchisees. Wendy’s cited its
a year earlier. reduced ownership of restau-
“Even with North America rants as a reason for its higher
continuing to turn in record results in the quarter and said
results each quarter, we still it plans to sell about 315 more
see many opportunities in the restaurants during 2016.
year ahead, including delivery Wendy’s has moved from
of more premium tires for our having 78% of its restaurants
customers and consumers,” owned by franchisees to 85%,
LUKE SHARRETT/BLOOMBERG

most are trying to gut it out
as they wait for a rebound.
Stripping out the one-time
costs, Goodyear reported an
operating profit of $257 mil-
lion, or 93 cents a share, com-
pared with $166 million, or 59
cents a share, in the year-ear-
Goodyear Chief Executive Rich
Kramer said on an analyst call.
“To respond to the increasing
demand, we delivered 1.1 mil-
lion more consumer tires to
our customers in 2015, and
we’re increasing our capability
for 2016 and beyond.”
and plans to have 95% of its
restaurants franchised this year.
The chain said same-restau-
rant sales at North American
restaurants rose 4.8% in the
quarter and 4.9% at its fran-
chise-operated locations, the
Goodyear sold more tires than expected, as consumers focused on the higher end of its line. best quarterly performance in
four years. The Consensus Me-
trix projection was for 3.1%

Soft Forecast Pressures SolarCity’s Stock

growth at franchised restau-
rants.
The Dublin, Ohio, company’s
new “4 for $4” meal, intro-
BY CHELSEY DULANEY of $4.63 million, compared duced nationwide in mid-Octo-
with a loss of $3.6 million after ber, helped boost sales in the
SolarCity Corp. reported including large impacts from quarter.
better-than-expected results non-controlling interests. Wendy’s and other chains
for its fourth quarter, but Excluding special items and previously struggled to come
shares tumbled in after-hours before the impact of non-con- up with a value offering that
trading as the solar-power trolling interests, the per- would resonate with customers.
company acknowledged it con- share loss was $2.37 a share. McDonald’s last month
tinues to fall short of its in- Analysts polled by Thomson launched a new value meal that
stallation goals. Reuters had forecast a loss of allows customers to pick two
Shares fell 33% to $17.60 $2.59 a share. menu items for a total of $2.
apiece in after-hours trading as Revenue surged 61% to Other rivals now offer $4
the company also forecast a $115.5 million, while analysts meals, including Burger King
steeper-than-expected loss for had expected revenue of $105.6 with its “5 for $4” meal and
its current quarter. As of Tues- million. CKE Restaurants Inc.’s
SERGIO FLORES/BLOOMBERG NEWS

day’s close, the stock had
dropped 46% in the past month.
“We are not happy with
these results, and recognize
our need to revamp our guid-
ance methodology to avoid any
potential shortfalls going for-
ward,” Chief Executive Lyndon
Rive wrote in a letter to share-
holders.
SolarCity, whose chairman
is billionaire entrepreneur
Elon Musk, said it has seen
strong residential installations,
but it continues to underper-
form in commercial installa-
For the current quarter, So- Hardee’s and Carl’s Jr. chains
larCity said it expects a loss of with their “$4 Real Deal.”
between $2.55 and $2.65 a Wendy’s posted earnings for
share. Analysts had forecast an the quarter ended Jan. 3 of
adjusted loss of $2.36 a share. $85.9 million, or 31 cents a
SolarCity expects its first- share, compared with $23.3
quarter installations to grow million, or six cents a share, a
18% from the prior year, but year earlier. Excluding items,
decline 34% from the fourth the company said its earnings
SolarCity has said residential installations were strong, but it is underperforming on the commercial front. quarter. The company cited its from continuing operations
decision to shut down its Ne- were 12 cents a share, up from
tions as big projects often miss end of a quarter. grow at a rate of about 40% in vada business after the state’s eight cents a year earlier.
construction deadlines. The SolarCity has said it would 2016, below the growth its public utilities commission re- Analysts, on average, had ex-
company plans to adjust its focus on improving its cash posted in recent years. cently said that solar-panel us- pected earnings of 11 cents a
guidance to exclude big proj- flow over growth this year. For the period ended Dec. ers would get paid for their share, according to Thomson
ects with deadlines near the The company said it expects to 31, SolarCity reported a profit energy at lower rates. Reuters.

Postal Service CVS Gets Boost From Prescription-Drug Sales

Custom Interior Protection For Whatever You Drive

Is Profitable
BY LAURA STEVENS
630-769-1500 • 800-441-6287
The U.S. Postal Service on
www.WeatherTech.com Tuesday posted its first quar-
terly profit since 2011, earning
$307 million after a holiday
delivery season that beat ex-
pectations due in part to more
flexibility on hiring seasonal
workers from its unions.
Excluding special items,
such as prepaying retiree
health benefits and changes in
MARY ALTAFFER/ASSOCIATED PRESS

workers’ compensation ex-

penses, controllable income
increased 12% to $1.26 billion
for the quarter ended Dec. 31.
The USPS this holiday sea-
son was looking to elbow its
way further into an e-com-
merce market long dominated
by United Parcel Service Inc.
and FedEx Corp. And for the
first time in recent years, the
Laser Measured USPS delivered more packages
than both of those rivals, as
FloorLiner™ the agency exceeded its holi-
day predictions.
Letter carriers delivered
“Factory Direct” Thousands of American made, about 660 million packages dur-
custom applications in stock! ing the holidays, up from the
99.9% shipped within 48 hours agency’s initial forecast of about
600 million. UPS delivered 612
See our full line of Automotive Accessories million packages, under its fore-
For US Customers : cast of 630 million deliveries.
WeatherTech.com “The Postal Service, I believe,
For Canadian Customers : is uniquely positioned to flex up
WeatherTech.ca during a period when you have
such a surge in volume. We kept
For European Customers : our network fluid, and we deliv-
WeatherTechEurope.com Made in America ered value for our customers,”
©2014 by MacNeil IP LLC said Postmaster General Megan
Brennan on a conference call
with journalists.
CVS Health Corp. reported places like nursing homes; and Express Scripts Holding Co.,
higher profit and sales in its Target Corp.’s pharmacy busi- unless it could deliver more
fourth quarter, as rising sales ness, which gives CVS nearly than $3 billion in savings on
of prescription drugs offset a 1,700 more locations. As both drug prices. The rare public dis-
slight drop in sales in the front those acquisitions become inte- pute puts the valuable contract
end of its stores, where traffic grated, CVS plans to market up for grabs. CVS executives
continues to erode. them aggressively to help sign declined Tuesday to comment
The quarter was broadly in up more clients to its network. on their plans to pursue it, but
line with Wall Street expecta- Building scale is one part of did say that Anthem’s move
tions, as CVS drugstores and CVS’s answer to falling reim- hasn’t affected negotiations
its big pharmacy-benefits man- bursement rates as more pa- with other clients.
agement business continued to tients are covered through fed- For the period ended Dec.
cover more patients and dis- eral Medicare and Medicaid 31, CVS reported a profit of
pense more drugs. programs, which carry lower $1.5 billion, or $1.34 a share, up
On Tuesday, CVS shares margins than private insurers. from $1.32 billion, or $1.14 a
rose nearly 1% to $90.51. Still, private insurers are share, a year earlier.
The results also were trying to squeeze more costs Quarterly revenue rose 11%
boosted by two recent acquisi- out of their drug plans as well. to $41.15 billion, after eliminat-
tions that allow CVS to cover The health insurer Anthem Inc. ing inter-segment sales.
more patients: Omnicare Inc., last month said it would drop —Chelsey Dulaney
which dispenses drugs to its longtime benefits manager, and Paul Ziobro
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 10, 2016 | B5

BUSINESS NEWS

Sears Set to Accelerate Store Closures

Retailer seeks cuts as Sears said, with warm weather
and “intense competition”
revenue and cash flow pressuring margins and driv-
disappoint; shares at ing sales declines, particularly
in its apparel segment.
lowest point since 2003 The company said Tuesday
it would take a $150 million to
BY SUZANNE KAPNER $200 million charge to write
AND LISA BEILFUSS down the value of its Sears
brand.
Sears Holdings Corp. said The tough business envi-
Tuesday that it would sell ronment hasn’t shaken Mr.
more assets, accelerate store Lampert’s faith in Sears. Mr.
closures and find other ways Lampert and his hedge fund
to cut costs after revenue fell have bought 2.6 million shares
short of expectations and cash since August, and they cur-
flow turned negative in the rently own 64.2 million shares,
important holiday quarter. or nearly 58% of the company,
Shares in the department- according to recent securities
store operator fell Tuesday to filings and Insiderscore.
their lowest levels since 2003. The company’s other big
The stock, down 54% over the shareholder, Fairholme Capi-
past 12 months, declined 8.8% tal Management run by Bruce
witz and Mr. Lampert didn’t
respond to requests for com-
ment.
Sears said that based on
the disappointing performance
of its recent quarter it will
speed up the closing of un-
profitable stores and look to
further reduce costs.
The company has recently
flagged 50 stores for closure
in the coming months and
suggested Tuesday that it may
raise that number.
It also said it is targeting at
least $300 million of other as-
set sales during the first half
of its 2016 business year—in-
cluding a possible sale or par-
tial divestiture of its Sears
Auto Center business, which it
had previously said it was
evaluating.

JEAN-MARC GIBOUX/ASSOCIATED PRESS

to $15.25 in 4 p.m. trading
Tuesday.
The Hoffman Estates, Ill.-
based retailer run by billionaire
hedge-fund manager Edward
Lampert has been jettisoning
assets to fund operating losses
and other obligations.
Since 2012, the company
has raised $9.5 billion by sell-
ing real estate and business
units, including the Lands’ End
clothing chain and Sears
Hometown and Outlet Stores,
according to Monica Aggarwal,
an analyst with Fitch Ratings.
Last year alone, the com-
pany raised $3.1 billion by sell-
ing stores into joint ventures
with mall owners and spinning
off 266 properties into a real-
estate investment trust.
As of Jan. 31, 2015, the
Berkowitz, has also added to The company added that it
its stake. Fairholme has is evaluating overall staffing
bought nearly two million levels but stopped short of an-
shares since August and owns nouncing layoffs.
about 28.5 million shares, or Steps announced Tuesday
26% of the company. would shave an additional
“Sears is worth multiples of $550 million to $650 million
its current market price, off of expenses, Sears said.
largely based on its vast real Sears said it expected to
estate empire and disparate have liquidity of $550 million
Sears, which owns the Craftsman brand, has been jettisoning assets to fund operating losses. businesses,” Mr. Berkowitz at the end of its fiscal year,
wrote in a recent letter to his comprised of $238 million in
company operated 1,725 Sears expects Sears will have to dropped 7.1% in the quarter. investors. cash and $316 million in avail-
and Kmart stores. raise close to $2.5 billion in li- Earnings before interest, He said analysts have able borrowing capacity under
Sears used a large chunk of quidity in 2016. taxes, depreciation and amor- wrongly concluded that the its revolving credit line—far
the money it earned from last Sears said it expects to re- tization turned negative in the best real estate has already less than some analysts had
year’s real-estate deals to re- port $7.3 billion in revenue for recently completed period by been sold, and noted that expected.
duce debt by about $1 billion. the quarter ending Jan. 30, roughly $50 million to $100 Sears has other assets it could The company also has $750
But sales and cash flow down from $8.1 billion a year million, compared with posi- divest, including the Kenmore, million it can draw down from
continued to decline and the earlier and below the $7.43 tive Ebitda of $125 million a Craftsman and DieHard brand another facility. Ms. Aggarwal
company ended 2015 with less billion analysts polled by year earlier, Sears said. names and its Home Services of Fitch had expected the com-
cash than analysts had ex- Thomson Reuters had pro- “The holiday selling season unit. pany to end the year with as
pected. Ms. Aggarwal said she jected. Sales at existing stores proved to be challenging,” Spokesmen for Mr. Berko- much as $2 billion in liquidity.

Facebook’sGlobalWebGoalsRunIntoPoliticalHurdles
BY DEEPA SEETHARAMAN
For the better part of a
year, Facebook Inc.’s global
ambitions have bumped up
against this question: Is some
Internet better than none?
This week, India delivered a
bruising answer.
India’s telecommunications
regulator on Monday banned
programs that offer access to
a limited set of websites and
apps, including Facebook’s
Free Basics service.
Free Basics still operates in
37 other countries. But the de-
cision, in the world’s second-
most-populous country, raises
questions about Facebook’s ef-
fort to expand Internet use in
developing countries.
To Facebook, an abridged
Internet is the most practical
and far-reaching way to reach
billions who now have no ac-
DANISH SIDDIQUI/REUTERS
fundamental principle of open- be a worthy experiment” in a with the situation. The person
ness in the Internet,” said world where Internet access said Google worried that users
Leonard Kleinrock, a professor can be too expensive for some would be unhappy about data
at the University of California, people, said Jonathan Zittrain, charges they incurred after
Los Angeles, who helped de- professor of Internet law at following the links in search
velop the Internet’s underlying Harvard Law School. results. When the service
network technology. But in its ruling Monday, launched in India last year,
Free Basics relies on a com- India’s Telecom Regulatory Microsoft Corp.’s Bing search
pact between Facebook and lo- Authority said Free Basics vio- engine was included.
cal telecom operators. The op- lated the principles of “net Critics in India said Free
erators offer free access to a neutrality,” the idea that Inter- Basics lacked many popular
limited set of Internet sites, in net providers cannot favor services, including Google
the hopes of ultimately con- some content over others. Search, YouTube and Face-
verting users to paying cus- The U.S. Federal Communi- book’s own messaging service
tomers. Facebook gets more cations Commission adopted WhatsApp. They decried Free
users, who in many cases rules favoring net neutrality Basics as “poor Internet for
come to view Facebook as the last year. Since then, Alphabet poor people.” Last month,
gateway to the Internet. Limit- Inc.’s YouTube has said T-Mo- hundreds showed up in New
ing the available sites prevents bile US Inc. is interfering with Delhi to register their con-
Free Basics users from con- its videos for a T-Mobile pro- cerns about the program.
suming too much data, which gram that waives data fees. Before Monday’s decision,
would hurt the carriers. Facebook launched Free Ba- Facebook executives said they
“The program needs to be sics, then called the Inter- would consider changes to
one where, ultimately, opera- net.org app, in July 2014 in Free Basics, including allowing
tors are going to be able to Zambia with telecom operator outsiders to audit how Face-
make money,” said Chris Dan- Airtel Networks Zambia PLC. book selects services.

cess. Chief Executive Mark
Zuckerberg called the service
“a bridge to the full Internet
and digital quality.”
Critics say otherwise.
“Facebook wishes to choose
what is ‘best’ for the end
An ad for Facebook’s Free Basics service displayed in India. The user—an erroneous supposi-
country banned such programs that offer selected sites for free. tion and one that violates the
iels, the executive leading In- The app offered access to 13 Indian regulators said they
ternet.org, Facebook’s broader services, including a bare- would allow companies to
effort to extend Internet ac- bones version of Facebook sponsor or pay for mobile data
cess, of which Free Basics is a that didn’t show videos, that consumers can use at
part. “If it is a money-losing Google Search and a version of will. Facebook has previously
endeavor, they’re going to Wikipedia where users can’t called that approach unsus-
turn it off.” edit pages. Soon after, Google tainable. Dr. Kleinrock and
That approach has defend- dropped out of Free Basics, ac- others say it is the best op-
ers. Facebook’s service “may cording to a person familiar tion.

tinued to battle with govern-

Burberry Sues J.C. Penney Over Trademark Pattern
Business ment lawyers and antismoking
advocates over the content of
Watch the statements.
Altria and Reynolds declined
to comment.
—Brent Kendall

TOBACCO
Cigarette Makers
Draw Judge’s Ire
The federal judge presiding
over government litigation
against tobacco companies in a
Monday opinion blasted ciga-
rette makers for continuing to
fight her court order requiring
them to warn the public about
the dangers of smoking.
U.S. District Judge
Gladys Kessler, based in Wash-
ington, adopted revised language
Monday for the product warn-
ings and rejected as “ridiculous”
the latest legal arguments being
made by the tobacco companies.
She said the defendants were
WPX ENERGY
Terra Energy to Buy
Rocky Mountain Unit
WPX Energy Inc. said it
would sell its WPX Energy
Rocky Mountain business, which
focuses on the Piceance Basin of
Colorado, one of North America’s
biggest natural-gas plays, to
Terra Energy Partners LLC for
$910 million in cash.
WPX said the divestiture will
help with liquidity, cut its over-
head expenses and improve cap-
ital efficiency going forward.
The deal, which is expected
to close in the second quarter,
comes after WPX in July bulked
up in the Permian Basin, buying
RKI Exploration & Production
NEIL HALL/REUTERS

trying to further delay the reso-
lution of a case that began in
1999.
The judge a decade ago ruled
tobacco companies violated civil
racketeering law by participating
in a lengthy scheme to deceive
consumers about the dangers of
smoking. She ordered them to
issue “corrective statements” re-
vealing the truth about their
products to prevent future de-
ception. Those statements are
to appear in newspaper and
television ads, as well as on the
companies’ websites and prod-
uct packaging.
Altria Group Inc., its Philip
Morris USA subsidiary, and R.J.
Reynolds Tobacco Co. have con-
LLC, and on New Year’s Eve an-
nounced a $309 million agree-
ment to sell gathering-system
assets, pushing the company
above its divestiture target.
On Tuesday, the company
said its sale to Terra “solidifies Burberry Group PLC accused gation. Burberry declined to house alerted the retailer to its leges infringe on its trademark.
WPX as a Permian-focused com- J.C. Penney Co. in a lawsuit comment. objections. Burberry also is seeking
pany and provides a more bal- Tuesday of infringing on its fa- The check design, shown The lawsuit says the items monetary damages.
anced commodity mix.” mous “check” pattern by selling above at a Burberry show in were made by Levy Group Inc., According to the complaint,
Houston-based Terra is as- exact copies of its designs. London and which Burberry a New York-based distributor the scarf attached to a coat
suming about $100 million in The British luxury brand said has splashed on everything of private-label and branded sold by Penney featured an
transportation obligations in ex- Penney sold a “scarf coat” and a from $225 umbrellas to $1,600 apparel, which was also named “exact copy” of the Burberry
change for more than $90 mil- quilted jacket that featured rep- fur-trimmed scarves, has been as a defendant. A representa- check trademark, as did the
lion of WPX’s natural-gas hedge licas of Burberry’s plaid pattern, protected since company tive of Levy Group wasn’t im- plaid lining of a quilted coat
value. WPX will retain more than according to the lawsuit filed in founder Thomas Burberry mediately available. that Penney sold.
$110 million in additional hedge U.S. District Court for the trademarked it in the 1920s. Tuesday’s suit against Pen- The lawsuit didn’t say when
gains, which will be realized Southern District of New York. Burberry said Penney con- ney asks the court to stop the the items were offered or how
throughout the year. A Penney spokeswoman de- tinued selling the products for retailer from selling the items many were sold.
—Anne Steele clined to comment on the liti- two months after the fashion and to turn over products it al- —Suzanne Kapner
B6 | Wednesday, February 10, 2016 NY * *** THE WALL STREET JOURNAL.

CAREERS

Whole Foods’ Boss Fine-Tunes Its Formula side the company. This cul-
Co-CEO calls himself
ture’s just too strong for
‘a pusher,’ challenging somebody to drop in from
natural food chain outside.

to do more, be faster WSJ: What do you work on

as a leader? You’re known
BY ILAN BRAT for having a big personality.
Mr. Robb: I’ve struggled with
AUSTIN, Texas—Amer- self-doubt, self-worth. Strug-
ica’s changing eating habits gled with being decisive, be-
are sending more shoppers cause I’m a very caring per-
to the produce aisle in son, and I think about other
search of fruits and vegeta- people’s emotions.
bles, making conditions ripe That being said, I am a
for a grocer like Whole driver leader. I’m a pusher
Foods Market Inc. leader. I think I’ve learned
Yet Walter Robb over the years to balance
BOSS and John Mackey, that with much more heart
TALK the retailer’s co- and care and consideration
chief executives, for others, because I push. I
have spent much say, ‘why not more, why not
of the past year fighting faster?’
slower growth and negative You know what? The mar-

ROBERT LIBETTI/THE WALL STREET JOURNAL

headlines, as the company’s ketplace asks those very
stock tumbled 33%. same questions, so I feel like
Part of the reason: Kroger people tease me about that
Co. and Costco Wholesale sometimes, but people also
Corp. are hooking customers like the fact that you think
on their natural and organic they can do more and you
foods, often at a lower cost, think the company can do
while the Austin-based gro- more.
cer has struggled to commu-
nicate why its offerings WSJ: You’ve said that you
might be different, or better. left your first Whole Foods
In June, New York offi- ‘There was a lot of very negative narrative about the company,’ Whole Foods Market Co-CEO Walter Robb says about the past year. leadership meeting in 1991 in
cials accused Whole Foods of tears.
mislabeling the weights of time for Whole Foods. Why not just for food that they All things big, strategic Mr. Robb: There was a knock-
some containers of prepared isn’t it? WSJ: Looking back over can cook but for food they and important for Whole down, drag-out [argument]
foods, overcharging some Mr. Robb: You’re looking at 2015, what did you learn? can eat right now. Foods, we do together. across the table.
consumers and undercharg- a tectonic shift in the mar- Mr. Robb: We’ve now learned I have the background of I’d never seen people talk
ing others. It recently settled ketplace where all the that anytime a story breaks, WSJ: How did Whole Foods being president and chief op- to each other that way in
the allegations. The grocer growth in food has moved in we’re responding right away, come to have two CEOs? erating officer, John is really my life. It made me feel bad
also became the butt of jokes the direction [of natural and because misinformation gets Mr. Robb: [John Mackey] brilliant at thinking 10 years inside. It just rattled me.
for a product it sold in Cali- organic products], so you out there, and people think, didn’t want to leave, and I down the road. I’ve got a lot I’m not so much on con-
fornia. An online photo of its have massive competitive well, that is the gospel. It’s wanted to be a CEO. We of passion around the expe- frontation, but on direct
$5.99 bottles of asparagus changes. You have a big gen- on us to be out there. went for a walk and figured rience for our customers. honesty, and saying exactly
water—16 ounces of water erational change. You have it out. John’s got a lot of passion what you want to talk
with a few asparagus spears huge change in technology. WSJ: What’s the future of su- around healthy eating, work- about.
bobbing inside—went viral Everybody’s into this space permarkets? WSJ: How do you and Mr. ing on his second I’ve toughened up a little
last summer. because they realize this is Mr. Robb: You could see in Mackey settle disagree- book around how we bring bit since then, and people
“There was a lot of very what customers want. the future stores being ments? that sort of messaging to the appreciate the directness
negative narrative about the We’re still creating 8,000 smaller. It’s going to be more Mr. Robb: Through email, at company and to the world. and the honesty.
company,” said the 62-year- new jobs this next year. fresh than non-fresh. all hours. John’s particularly good
old Mr. Robb, who has been We’re still opening 30 new You’re going to see an ex- WSJ: How are you planning at it.
co-CEO since 2010. stores. We’re launching a plosion in food service and WSJ: Does Whole Foods still for the next CEO?
In an interview, Mr. Robb second format called 3-6-5 prepared foods and bever- need two CEOs? Mr. Robb: Everyone we think MORE ON MOBILE
talked about Whole Foods’s by Whole Foods. ages, an explosion of choices Mr. Robb: Why wouldn’t you is possible for that role—no-
culture and what’s ahead for It’s a short-term re- for those who don’t want to have two CEOs? You have body’s ready yet—are in the Watch a video
the grocery business.
Edited excerpts:
set…but we intend to con-
tinue to be leaders in the
new world order. We’re not
cook. And they’ll be able to
get it on-demand.
Ultimately [customers]
two perspectives, two folks
who are deeply committed to
the company. If it works, you
roles that would help them
prepare for that.
I would think the next
WSJ
.COM
interview of
Walter Robb of
Whole Foods at
WSJ: This should be a great back on our heels. are looking to the food store get the best of two worlds. leader would come from in- wsj.com/business

ADVERTISEMENT

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To advertise: 800-366-3975 or WSJ.com/classifieds

CAREERS CAREERS CAREERS





     
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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. Wednesday, February 10, 2016 | B7

BUSINESS NEWS

Slump Casts Pall at Miners’ Bash Railroad

BacksOff
Grim outlook served mining outfits. The Indaba or-

up at subdued Indaba
conference at winery
ganizers say attendance is
down 10% from a year ago as
companies have sent fewer
delegates.
in South Africa. “The place used to be
packed, you couldn’t walk
CAPE TOWN, South Af- from one side of a room to an-
rica—For the world’s mining other without running into 10
elite, the party is over. people you knew,” said Tom
Industry executives gath- Albanese, CEO of Indian min-
ered Monday at a 316-year-old ing company Vedanta Re-
winery owned by U.K. giant sources PLC and former chief
Anglo American PLC for a of Rio Tinto, who has been at-
tending the conference since
By Scott Patterson, the early 2000s.
John W. Miller Deal activity among miners
and Alexandra Wexler has skidded five years in a
row, and few expect it to pick
night of dancing, drinking fine up in 2016, according to an
wine and deal making. But the Ernst & Young report re-
dancing was subdued, and leased last week.
there were few deals to dis- Mining companies have an-
cuss as a colossal slump in nounced plans to cut tens of
commodity prices cast a pall thousands of workers in the
over the shindig. past year as the prices for
“It’s a tough time for the what they dig up and sell have
industry,” Mark Cutifani, chief plummeted. Copper prices
executive of Anglo American, have fallen 28% since last
told partygoers at Vergelegen, year’s peak, while the bench-
the vast winery the company mark price for iron ore deliv-
bought during better days in ered to China has plunged 27%
ProxyFight
BY JACQUIE MCNISH
AND LAURA STEVENS
Canadian Pacific Railway
Ltd. backed away from a
threatened proxy battle to un-
seat Norfolk Southern Corp.
directors, opting to enlist the
Virginia rail operator’s share-
holders to press the board for
friendly merger talks.
Canadian Pacific said it
would submit a nonbinding
resolution to the company’s
coming shareholders’ meeting
calling for the board to start
negotiations. The Calgary, Al-
berta-based railway has been
surprised by the force of op-
position to the deal, according
to a person familiar with its
plans.
“We believe this share-
holder resolution is the clear-
est, fairest approach to a pro-
cess that will result in an
outcome beneficial to all
stakeholders,” Canadian Pa-

WALDO SWIEGERS/BLOOMBERG NEWS

1987. If miners don’t develop over the past year. cific said in a statement on
“new pathways to suc- Glencore aims to raise at Tuesday.
cess…there will be no future.” least $10 billion to reduce its Norfolk Southern said it
Then, a steak dinner was debt by eliminating its divi- wouldn’t support further dis-
served with the estate’s signa- dend, mothballing mines, issu- cussions barring an offer with
ture wines, and the dance mu- ing $2.5 billion in new stock “compelling value” that ad-
sic started. and selling assets. Anglo has dresses regulatory issues.
Investing in African Mining plans to sharply scale back its The Norfolk, Va., company’s
Indaba, the industry’s most business, resulting in the loss stock rose 1%, or 93 cents, to
important conference, kicked of a 85,000 employees. $71.42, and Canadian Pacific
off this week in Cape Town, Anglo American CEO Mark Cutifani said Monday the industry needs to develop ‘new pathways to success.’ With mining jobs on the gained 1.9% to $124.10, both in
South Africa, with the sector chopping block around the 4 p.m. New York trading on
in a state of collapse. Once- Nichole McCulloch, managing organizers said, but a black- Vergelegen’s wines and the world, and businesses that ca- Tuesday.
mighty companies such as An- partner of the Ashton Partner- tie dinner on Thursday night restoration of local flora than ter to miners scrambling to Canadian Pacific’s retreat
glo American, Glencore PLC ship, a London-based head- is expected to draw 13% fewer on iron-ore or copper markets. find business, attendees strug- from pursuing a hostile take-
and BHP Billiton are scram- hunting firm. attendees. “People either are “There were more empty gled to put on a brave face over reflects its dwindling op-
bling to adapt as their profits This year, Mr. Cutifani was cutting back or they don’t chairs than last year, and about the future. tions after a three-month cam-
plunge and their shares hem- the leading corporate speaker. want to be seen entertaining,” Cutifani couldn’t find any- “It’s less of a party atmo- paign that has failed to draw
orrhage value. Most of Glencore’s top execu- during the downturn, a thing positive to say about sphere,” said Chris Griffith, wider support. Its bid is
Indaba, as the annual con- tives didn’t show up. spokeswoman said. mining, so he talked about CEO of Anglo American Plati- backed by activist investor
ference is known, was once an The tone also is glum at In- At Anglo’s winery party— sports and wine,” said Rhulani num Ltd., the world’s top pro- William Ackman, who sits on
unmissable week of top speak- ternational Petroleum Week, a sponsored by Indaba’s orga- Maluleke, managing director ducer of the precious metal. the Canadian railroad’s board
ers such as former U.K. Prime London conference that draws nizers—the company decided of Hape, a South African min- “It’s very somber, and it’s and whose hedge fund owns
Minister Tony Blair by day executives from the world’s not to show their usual high- ing-services firm with 18 em- somber for a good reason.” about 9% of its shares.
and beachfront parties thrown top energy and trading com- light movie showing scenes ployees. Indaba is still seen by Afri- Norfolk Southern’s board
by Glencore traders in the panies. Oil prices are down from its sprawling interna- The grim mood is broadly can nations hungry for invest- has dismissed the hostile bid
balmy South African summer more than 70% since June tional empire. reflected on the conference ment as a useful way to lure as inadequate and unlikely to
air by night. 2014. Mr. Cutifani’s speech fo- floor, where service and tech- executives. The Democratic win approval of regulators in a
“You’d get invitations to Overall attendance at the cused more on South African nology companies pitch their Republic of Congo’s mining process that is expected to
parties on gold coins,” said event is the same this year, rugby, the quality of the wares to the world’s biggest ministry sent 30 people. last years.

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 <0 1 2 3 4 5 6 7 8 9 10 11 12 65 Fire proof added 26 “I Will Always
-0s 10s to the four Love You,” e.g.
V
Vancouver C ary
Calgary 20s 0s 0s 13 14 15
longest Across 27 Ornamental
50s 30s 0s 20s 10s
answers
ttl
Seattle
ip
Winnipeg
20s
16 17 18 plants
Por
P d
Portland
Down 29 Best Picture set
Montreal 30s 19 20 21
Helena
l A
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60s 10s 30s 40s 22 23
Eugene i
Boise t
Boston 50s
2 War, to 30 City once called
Billings Mpls./St
/ . Paul
Mpls./St. TToronto Albany
A b
60s P
Pierre 24 25 26 27 28 29 30 31 Sherman “Oil Capital of
tford
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30s
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32 33 34
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es Moines studio 31 Hit the hay
Ch
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Phil
Philadel
d lp hi 80s
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alt Lake
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p g d p
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hi
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DC 90s
an Francisco
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Charles
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L Springs 60s City Richmond
h d
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Angeles
Los A
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h 6 Letter before collected
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Memphis h
Atl t
Atlanta 47 48 49 Foxtrot
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Ph
Phoenix Albuquerque
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kl h City
Cit
Ci
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80s LLittlee Rockk Birmingham
gh
T c
Tucson 50 51 52 53 54 55 56 7 Oscar-nominated Disney rabbit
Ft. Worth D ll
Dallas Jackson
J k
El P
Paso
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70s bil
Mobile Jacksonville 57 58 59
-0s Austin
A ti
Smith
Houstont 50s Stationary Snow 46 Hoedown
0s l d
Orlando 60 61 62 8 Captur SUVs,
New
ew Orleans
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an Antonio e.g.
10s Honolulu
l l 60s Showers Flurries 63 64 65 48 “Mr. Robot”
20s 30s AAnchorage
h g 80s 80s Miami 9 Stage name of network
70s Margaretha
40s Ice
FIRE PROOF | By Becky Melius Zelle 50 Doesn’t just
pass
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 23 Rhapsodize 42 Fork feature 10 Grand Canyon
51 Starbucks order
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Player across the 24 Mirrored item 43 Vampire with Natl. Pk. site
Omaha 29 16 sf 28 24 c Frankfurt 42 35 sh 44 33 sh
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 57 36 s 62 44 s Geneva 41 28 pc 43 34 r diamond from in a disco? spirited style? 11 Opportune 52 “Happy
Today Tomorrow Philadelphia 42 25 pc 29 17 sf Havana 71 61 pc 69 59 s I Don’t Know Motoring”
City Hi Lo W Hi Lo W 28 Anagram of 47 Paul of 12 Cheeky talk
Phoenix 84 52 s 85 52 s Hong Kong 67 63 pc 69 65 c company
Anchorage 32 27 sf 36 26 i Pittsburgh 28 13 sf 21 10 sf Istanbul 56 48 pc 51 45 r 4 Mascara mess 22-Across “Ant-Man” 14 “If only!” 53 Dunham of
Atlanta 39 27 s 53 32 s Portland, Maine 34 22 sf 30 5 c Jakarta 85 74 sh 84 75 sh 9 “Total Recall” 32 Torpedo’s target, 49 Set of dishes
Austin 76 49 s 79 47 s Portland, Ore. 58 48 c 58 49 sh Jerusalem 50 39 sh 52 37 pc setting 18 MLB VIPs “Girls”
perhaps
Baltimore 39 22 pc 30 13 pc Sacramento 73 45 pc 72 46 pc Johannesburg 79 58 pc 81 59 pc 50 Comfortable 20 Used to be 54 Bill no.
Boise 48 31 pc 51 33 pc St. Louis 29 18 sn 32 20 pc London 47 31 pc 46 34 pc 13 Participant in a 33 Dismounted
Boston 37 23 sn 32 11 sf Salt Lake City 42 26 pc 46 28 s Madrid 57 50 sh 59 47 sh pecking order 53 Home to many 23 Minor 55 Capone foe
Burlington 32 19 sf 20 2 sf San Francisco 65 51 pc 64 51 pc Manila 87 77 s 88 76 s 34 Fidel’s brother celebs
14 Cold spike malfunction 56 “Heaven’s face
Charlotte 41 18 pc 44 25 s Santa Fe 58 28 s 61 29 s Melbourne 77 59 c 77 60 s 35 Only state with
Chicago 17 8 pc 23 12 s Seattle 56 48 c 57 50 sh Mexico City 61 38 pc 68 36 s 57 Trade-in? 24 “Birches” poet ___ glow”:
15 Cavatina’s kin a nonrectangular
Cleveland 25 13 sn 22 12 sf Sioux Falls 19 8 sf 22 15 c Milan 54 29 s 50 29 pc 59 Alias of film’s Hamlet
Dallas 73 48 s 69 39 s Wash., D.C. 41 23 pc 32 20 pc Moscow 35 25 c 31 26 pc 16 Green around the flag 25 Emmy winner
Denver 58 29 s 54 35 s Mumbai 86 68 pc 83 68 pc
Thomas Christine 58 Cheeky talk
gills 37 Some Anderson
Detroit
Honolulu
27 11 sf 25 15 pc
81 66 s 81 70 s
International Paris
Rio de Janeiro
47 35 pc
98 76 pc
45 36 sh
89 76 t 17 “Separate whites psychological
Previous Puzzle’s Solution
Today Tomorrow tests 60 Queen who
Houston 70 50 s 77 55 s Riyadh 69 52 s 70 42 s from bright
Indianapolis 21 8 pc 25 11 s City Hi Lo W Hi Lo W Rome 58 42 s 56 47 sh sings “Let It Go” D E F L U C A S S A D E
colors” and the 38 Key on a map O D E A T O L L S A L E X
Kansas City 44 20 s 36 24 pc Amsterdam 45 37 sh 45 34 sh San Juan 85 72 pc 85 72 pc like? 61 Shades F I R M O R E A N D M O R E
Las Vegas 71 46 s 72 46 s Athens 62 55 c 62 51 s Seoul 47 29 s 53 40 c 39 Boarding site F T R O O P SWO O S H E S
62 Houston hrs. A C T I I C R O A K
Little Rock 51 32 s 54 29 s Bangkok 90 67 s 93 73 s Shanghai 64 55 s 64 55 sh 19 Collide with, with 40 Eldest of the M I G H T A N DMA I N
Los Angeles 87 55 s 85 56 s Beijing 53 34 s 49 36 sh Singapore 85 80 t 88 79 c force O H A R A V E E P S C A W
Miami 65 46 pc 67 54 s Berlin 44 36 c 42 32 sh Sydney 81 68 s 82 70 pc Baldwin 63 Circuit board M A M E M I L L S T A X I
Milwaukee 16 7 pc 20 10 s Brussels 43 34 sh 43 34 sh Taipei 75 64 s 77 63 pc 21 Bowls over bothers setting A D O P A T I O S O R E R
Minneapolis 12 1 s 17 6 pc Buenos Aires 88 67 pc 91 71 pc Tokyo 49 39 s 50 43 s M I K E A N D M O L L Y
22 Group that 41 Ancient symbol 64 Unexpected S T O V E S E A T S
Nashville 33 25 pc 42 21 s Calgary 47 34 c 50 34 c Toronto 30 10 sf 17 12 c G L A R E S A T S S H A P E
New Orleans 57 46 s 75 55 s Dubai 76 60 s 76 62 s Vancouver 52 44 r 52 46 r 28-Across of royalty rush M I X A N DMA T C H G U M
New York City 40 24 sn 30 16 sf Dublin 44 33 pc 43 34 pc Warsaw 49 36 r 42 31 sh A C E S O E U V R E A R I
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 72 36 s 57 31 s Edinburgh 42 30 pc 41 30 pc Zurich 40 30 sn 43 30 sn N E S S S T A Y S N E T

© 2016 Dow Jones & Co., Inc. All rights reserved. 6DJ2872

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B8 | Wednesday, February 10, 2016 THE WALL STREET JOURNAL.

STEFAN M., LAKISHKA R., TE’NESHA M., WILLIE H., TITUS H.

TANEISHA B.

THERE’S A FUNNY THING THAT

HAPPENS WHEN YOU BUILD
FACTORIES IN THIS COUNTRY.
IT’S CALLED JOBS.
CLINT J.

MARCUS A.

NEW YORK 177 FR ANKLIN ST

DETROIT • NEW YORK • CHICAGO

WASHINGTON DC • LOS ANGELES • LONDON
ADAM P.

SHINOL A .COM

CAROLYN S.
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LENDING C2 | IN THE MARKETS C4 | PROPERTY REPORT C6, C8

Deutsche Bank’s
Italy’s Tax Pursuit

RALPH ORLOWSKI/REUTERS
Capital Concern
HEARD ON
Rome crackdown hits Swiss banks GLOBAL FINANCE | C3 THE STREET | C12
© 2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Wednesday, February 10, 2016 | C1
DJIA 16014.38 g 12.67 0.08% S&P 1852.21 g 0.07% NASDAQ 4268.76 g 0.35% 10–YR. TREAS. À 3/32, yield 1.728% OIL $27.94 g $1.75 EURO $1.1294 YEN 115.12 See more at WSJMarkets.com

Yield Drop Rattles Markets Japan’s Dilemma

Japanese government bond yields have fallen steadily, in part
because inflation has fallen short of the target. On Tuesday, the
10-year yield turned negative for the first time.
The cost of low rates investors, consumers and busi- The slide has alarmed in- rates will be with us for years,
Yield on the 10-year Japanese Median BOJ projection for inflation
nesses alike. vestors because borrowing hurting the profitability of
for investors and the A little more than a month costs tend to rise in a healthy banks and squeezing insurers, government bond in the year ending March 2016*

economy piles up after the Federal Reserve economy, reflecting growing asset managers, pension funds 2.0 % 2.5%
lifted its benchmark rate from demand for money among and others. TARGET: 2%
BY DAN STRUMPF near zero, rates across the consumers and businesses and For now, Fed officials are 1.5 2.0
AND JOE LIGHT market are falling. The yield bolstering the profits of banks keeping their options open,
on the 10-year U.S. Treasury and other financial firms. but the odds of another rate 1.0 1.5
At the start of 2016, Ameri- note, a benchmark for every- Instead, shares across the increase this year appear to be
cans were bracing for interest thing from mortgage rates to financial sector are tumbling getting slimmer. Fed Chair- 0.5 1.0
rates to rise significantly for corporate lending, this week along with rates. The KBW woman Janet Yellen begins
the first time since the finan- fell below 1.7%, its lowest level Nasdaq Index of large U.S. two days of congressional tes- 0.0 0.5
cial crisis. in a year. On two-year notes, a banks is off 18% this year, timony on Wednesday and
Instead, rates have slumped widely watched gauge of bank compared with a 9.4% decline could clarify the near-term –0.5 0.0
anew, rattling financial mar- funding costs, yields also have in the S&P 500. The slump re- outlook for Fed policy. 2005 ’10 ’15 2013 ’14 ’15
kets and undoing the plans of dropped significantly. flects expectations that low Please see RATES page C2
*Projection for consumer price index excluding fresh food.
Projections take place in January, April, July and October
Sources: Thomson Reuters; Bank of Japan

Oil Plunges Anew as Demand Shifts Yen Surge Imperils

THE WALL STREET JOURNAL.

BY NICOLE FRIEDMAN

Japan Growth Plan

Cooling Down
For most of its history, oil Oil-demand growth in
has flowed in one direction: emerging nations is slowing,
from developing nations, potentially creating new
where it is produced, to indus- headwinds for prices.
trialized nations, where it is BY ELEANOR WARNOCK borrow some money, but I just
consumed. That pattern no put that money in the bank.”
longer holds true, and the OIL DEMAND TOKYO—Japan’s yen The Japanese economy
shift could produce another OECD countries strengthened to its best level probably shrank slightly in the
economic force weighing on Non-OECD countries against the dollar since 2014, as fourth quarter, according to
global oil prices. a global flight to safety threat- economists’ estimates, which
Annual average
Oil prices have plunged 50 million barrels a day ened to unravel the delicate would be the second contrac-
since mid-2014 amid global market balance that Prime Min- tion in three quarters. The data
oversupply, with U.S. prices 40 ister Shinzo Abe and the Bank will be released Feb. 15. The
falling $1.75, or 5.9%, to $27.94 of Japan have tried to build. weak stock market may deter
a barrel Tuesday on the New 30 Volatile financial markets companies from raising wages
York Mercantile Exchange. are leading global investors to during spring labor negotia-
Emerging markets have ac- 20 seek safety in the yen, which tions, despite Mr. Abe’s fre-
counted for the majority of improved to about 115 against quent calls on executives to do
10
global oil consumption since the dollar on Tuesday, despite so.
A Petrobras
2014, according to the Interna- 0 vessel at a
the Bank of Japan’s decision Hideo Hayakawa, a former
tional Energy Agency. Demand maintenance last month to introduce nega- Bank of Japan official now at
’08 ’10 ’12 ’14 ’16*
from developing countries shipyard in tive interest rates. the Fujitsu Research Institute,
amounted to slightly more Change from a year earlier Brazil The yen’s appreciation could said the monetary easing had
than half of the 95 million bar- 9% spoil Japan’s plans to reignite yet to trigger a positive cycle of
rels a day consumed in the growth with its new monetary

115
fourth quarter of 2015. 6 policy, which central bankers
The shift marks a reversal hope will encourage consumer
after decades when the U.S. 3 spending over saving. But a
and other developed nations stronger currency weighs on The yen rose to this level
0
in the Organization for Eco- Japanese corporate profits by against the dollar in Tuesday
nomic Cooperation and Devel- making exports more expen- trading.
–3
opment dominated demand. sive, and weaker corporate
With producing nations in –6 Quarterly
earnings could keep a lid on
the Middle East, Latin America wages and spending. spending and investment. Real
’08 ’10 ’12 ’14
and elsewhere responsible for Economists also said that wages fell in 2015 for the fourth
a bigger part of the consump- negative yields are contending year in a row, the government
tion pie, lower oil prices could with a number of headwinds. said Monday.
spark a vicious circle in which WORLD AVERAGE Those forces—weak growth, Economists said the move to
demand falls along with prices 100 million barrels a day low commodity prices, uncer- negative rates—Bank of Japan
as the value of those coun- Supply tainty about the Chinese econ- Gov. Haruhiko Kuroda’s latest
tries’ exports declines, weigh- 95 omy and rising U.S. rates—are “bazooka” and the third since
ing on economic growth. likely to continue, offsetting the he took office in April 2013
“The emerging markets are 90 Demand benefit of negative rates. vowing to defeat deflation—
largely commodity-based mar- “If minus interest or lower was aimed at weakening the
kets,” said Richard Soultanian, 85 interest rates made my custom- yen and propping up stock
co-president of energy-con- ers increase in some way, then prices. The opposite happened.
sulting firm NUS Consulting maybe I’d invest in my busi- “Gov. Kuroda is starting to
80
Group. “With the enormous ness, but that hasn’t hap- lose his divine powers,” said
stress they’re undergoing as a ’08 ’10 ’12 ’14 pened,” said Yoshi Noguchi, Yuichi Kodama, chief economist
result of the broader commod- who runs a music rehearsal stu- at Meiji Yasuda Life Insurance
ity slump…it’s hard to find any Note: Organization for Economic Cooperation and Development (OECD) members include many developed nations. *Projection dio in Tokyo. “In order to have Co. “In other words, one of the
Please see OIL page C3 Source: International Energy Agency Photo: Dado Galdieri/Bloomberg News THE WALL STREET JOURNAL. a relationship with the bank, I Please see YEN page C4

Twitter Should Eye Yahoo’s Past

BY STEVEN RUSSOLILLO
Character Building
people. But, as the original
tech bubble taught investors,
“IN OUR VIEW,
ACTIVE MANAGEMENT
We have seen this movie Twitter’s quarterly revenue, eyeballs aren’t everything.
before. Twitter Inc. benefits change from a year earlier The risk as Twitter gets set
from its 320 million monthly to report fourth-quarter re-
125%

CAN RESULT IN
active users and a growing sults Wednesday is that its
online ad network. But how trajectory might mimic Ya-
100
the microblog- hoo’s. Analysts estimate Twit-
AHEAD OF ging service can ter had earnings for the pe-

OUTPERFORMANCE
75 Consensus
THE TAPE effectively mon- estimate riod ended in December of 12
etize those eye- 50 cents a share. Revenue growth
balls remains is expected to decelerate for a

THROUGH MARKET
unclear. The further the stock 25 sixth consecutive quarter.
drops, the more the takeover Yes, Twitter is attempting
0
speculation rises. to juice user growth through

CYCLES.”
Twitter could learn a 2014 ’15 tweaks to its format. Those
thing or two from one of its Source: FactSet ideas haven’t been well-re-
tech elders: Yahoo Inc. THE WALL STREET JOURNAL. ceived; #RIPTwitter was
Eight years ago this month, trending on, you guessed it,
THAT’S THE POWER OF ACTIVE MANAGEMENT.
SM

Yahoo received a $44.6 billion and Facebook Inc. today). In Twitter last week. The shares
takeover bid from Microsoft the two years prior to Micro- plumbed new lows Tuesday,
Corp. The software giant, soft’s offer, Yahoo shares lost down some 80% from their Our skilled active managers can exploit market inefficiencies by actively
drawn to Yahoo for its more than half of their value. December 2013 peak.
sprawling user empire, hoped While not a perfect paral- Management hasn’t indi- selecting securities and managing risk to create longer-term value for
a combined entity would gain lel, Yahoo and Twitter both cated it would be open to a investors. MFS examines the value of skilled active management in our
ground on search behemoth benefit from a large user sale. Still, anyone buying white paper, “There’s No Substitute for Skill,” at MFS.com/getactive.
Google Inc. Yahoo infamously base. Yahoo still has about Twitter shares now is per-
rejected that offer. Now, the one billion people a month haps banking on a white
struggling company is consid- visiting its various web prop- knight more than an actual
ering a breakup. erties. Many shareholders turnaround strategy. If Twit-
Even before that bid, the bought Yahoo during its long ter is smart, it will study Ya-
market was punishing Yahoo decline in the belief it would hoo’s missed opportunities.
for stalling as Google was come up with a way to get
thriving (much like Twitter more value out of all those Email: tape@wsj.com

INDEX Credit Markets............................................. C10 Exchange-Traded Funds....................... C11 Heard on the Street................................. C12 New Highs & Lows......................... C9,11 ©2016 MFS Investment Management 33409.1
CD Rates.................................................... C12 Currency Trading.......................................... C5 Finance Watch................................................ C3 Money Rates................................................. C12 Property Report................................. C6,8
Commodities.......................................... C10 Dividend News............................................. C10 Global Finance................................................. C3 Mutual Funds................................................ C12 Stock Listings...................................... C4,8
C2 | Wednesday, February 10, 2016
Economics 101 Regulator Backs Payday Alternatives
BY YUKA HAYASHI
WASHINGTON—The Con-
sumer Financial Protection Bu-
reau, preparing to roll out
Why does IBKR rules aimed at reining in high-
interest payday loans, is jaw-
do more trades than boning banks and credit
unions to provide better alter-
natives for borrowers in need
any other broker? of small, short-term loans.
Richard Cordray, director of
the watchdog, said it is dis-
Because it is the cussing ways to make it easier
for banks and credit unions to
least expensive.* offer “small-dollar” loans. The
step could put the agency on a
collision course with banking
regulators, who have discour-
aged traditional banks from
offering such loans. It also
Why is IBKR the could fuel opposition from the
$38.5 billion payday-lending
least expensive broker? industry, which fears the new
rule would wipe out much of
its business.
Because it does “I personally believe banks
and credit unions can be low-
more trades.† cost providers of small-dollar
loans,” Mr. Cordray said. “I
think that working with banks
and regulators involved, there
would and should be an ability
for them to offer decent prod-
ucts.”
How did we get here? Mr. Cordray didn’t offer spe-
cifics about the rule but said
banks could offer small-dollar
In a free economy loans as “rescue products” for
their customers. Under a draft
the best technology wins!* of the rule released last March,
lenders would be required to
verify the borrowers’ ability to
pay back the loans, limit the
number of loans borrowers
could take out and require the
lenders to offer affordable re-
payment options.
The Treasury Department
Interactive Brokers
interactivebrokers.com/e101 Morgan Stanley Trader Offers Grim View
BY JUSTIN BAER
Morgan Stanley’s top trad-
Member - NYSE, FINRA, SIPC – Supporting documentation for any ing executive warned that the
claims and statistical information will be provided upon request. first quarter was shaping up to
*According to Barron’s best online broker review on March 9, be another tough one for Wall
2015, How Secure Is Your Securities Portfolio. Lowest cost of any
broker and Best Trading Experience & Technology in Barron’s Street, as volatile markets take
survey. For more info see ibkr.com/awards. Barron’s is a registered a toll on investors’ desire to
trademark of Dow Jones & Company, Inc. † Based on DARTs of buy and sell with banks.
US ebrokers in Q3 2015. 01-IB16-957CH940 That view is particularly sig-
nificant because the first quar-
ter is often the strongest pe-
riod for banks’ trading
businesses.
ADVERTISEMENT
“The year started out OK,
but it’s been a lot choppier
since then,” said Edward Pick,
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Morgan Stanley’s head of trad-
ing, during a discussion at the
Credit Suisse Financial Ser-
vices conference Tuesday.
NOTICE OF SALE Trading revenue, he added, so

   

MONEY & INVESTING
also is pushing an alternative to
payday lending. Its budget for
fiscal 2017, unveiled Tuesday, in-
cludes funds to help commu-
nity-development financial in-
stitutions extend small-dollar
loans. The budget sets aside at
least $10 million to provide
technical assistance and to
cover potential loan losses in-
curred by these lenders, which
fund development projects in fi-
nancially struggling communi-
ties.
In recent years, banks, in-
cluding Wells Fargo & Co. and
U.S. Bancorp, stopped offering
products similar to payday
loans but with somewhat
lower interest rates. Their exit
Richard Cordray said the loans could serve as ‘rescue products.’
healthy first quarter we saw
last year.”
Against that backdrop, ex-
ecutives sought to make the
case that investors’ fears in
the sector have been over-
blown. Bank stocks have got-
ten clobbered this year as
fears grow about the global
economy, stock-market volatil-
ity and plunging crude-oil
prices.
“We know what the three
culprits are,” Mr. Pick said.
“One is China in its adoles-
cence, two is the relentless de-
cline of crude [oil] and its ef-
fect on the credit complex and
sovereigns. And then, three,
is…the Fed, fear of Fed self-
doubt.”
Morgan Stanley shares,
THE WALL STREET JOURNAL.
followed 2013 guidelines is- nual interest rates exceed-
sued by the Federal Deposit ing 400%. While millions of
Insurance Corp. and Office of Americans lack access to bank
the Comptroller of the Cur- accounts, payday customers—
rency that warned of risks but who pledge repayments
didn’t ban the loans outright.
Because the rule has yet to
through automatic withdraw-
als on their paychecks—do
be formally proposed, spokes-
men for the FDIC and OCC de-
have regular bank accounts.
Mr. Cordray’s comments are
clined to comment as did a part of a CFPB effort to ex-
spokesman for Wells Fargo. pand financial services to
U.S. Bancorp didn’t respond to lower-income consumers. On
a request for comment. Feb. 3, the agency asked banks
The payday-lending rule, to voluntarily offer low-cost,
expected to be formally pro- no-overdraft checking ac-
posed within the next few counts available to consumers
months, represents the federal to help bring them into the
government’s first comprehen- banking system.
sive attempt to curb payday House Republicans, long
lending, which can carry an- critical of the CFPB, are sched-
uled to grill a top agency of-
ficial Thursday at a Financial
Services subcommittee hear-
ing titled, “Short-term, Small
Dollar Lending: The CFPB’s As-
sault on Access to Credit and
Trampling of State and Tribal
Sovereignty.”
Banks and credit unions
would be interested in offering
such loans to their customers,
said David Pommerehn, vice
president and senior counsel
at the Consumer Bankers As-
sociation, a trade group of re-
tail banks. For the rule to
work, he cautioned, it must be
easy to use so banks can issue
loans quickly to meet consum-
DREW ANGERER/BLOOMBERG NEWS
ers’ needs for emergency cash.
Mr. Pommerehn also urged
bank regulators to forge a
common position. “First and
foremost, the CFPB needs to
understand that whatever they
do, it needs to be communi-
cated and coordinated
with the prudential regula-
tors,” he said.
downward trend for most big- banks,” he said.
bank stocks. Other executives agree the
Goldman Sachs Group Inc. gloom and doom have gotten
Chairman and Chief Executive out of hand. “We came back
Lloyd Blankfein, speaking at after Christmas and…the sky is
the same conference, noted falling,” said Kelly King, chair-
that he isn’t worried about man and CEO at regional bank
trading with other banks, de- BB&T Corp. “I see no basis for
that.…Certainly there are
Some executives say macro issues to be concerned
about, but fundamentally, the
investors’ fears on U.S. economy is pretty solid.”
bank stocks are John Shrewsberry, finance
chief at Wells Fargo & Co.,
overblown. said Tuesday that investors
soon will look to see how
banks do on their annual capi-
spite rising concerns on the
outlook for the sector.
tal “stress test” with the Fed-
eral Reserve. As for the mac-
New rules imposed on big roeconomic outlook, Mr.
banks since the 2008 financial Shrewsberry said that even if
crisis have forced them to banks have a bad earnings


   

 

  


  
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INTERNATIONAL NOTICES DEA much as 8%. Cars were displayed for sale at Keyes Hyundai in Los Angeles’s Van Nuys neighborhood in January.
She moved a portion of her


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 %) continue to grow, produce ments made to customers on U.S. economist at Bank of —Jon Hilsenrath
jobs, push up wages and grad- deposits. America Merrill Lynch. 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 10, 2016 | C3

Italy’s Tax Crackdown Hits Swiss Banks
Financial industry in
Ticino, an Italian-
speaking canton, is
particularly hard hit
BY GIOVANNI LEGORANO
AND JOHN LETZING
LUGANO, Switzerland—
Rome’s latest crackdown
on tax evasion is serving up
GLOBAL FINANCE
those who didn’t step for- has lost as much as a quarter
ward—had unearthed €40 bil- of its Italian assets over the
lion ($44.6 billion) in unde- years. The bank itself has cut
clared money belonging to its staff in Ticino by 10% since
Italians in Swiss banks, about 2010, as part of a global re-
two-thirds of it in Ticino. That duction. “We’re pushing [our
follows Italy’s prior recovery clients] to regularize,” or de-
of €60 billion from Switzer- clare any hidden funds, Mr.
land during back-to-back am- Santi said.
nesties in 2009-2010, mostly The mostly smaller banks
from Ticino. that make up the bulk of Ti-
“Italian clients found them- cino’s financial industry have
selves with basically nowhere fared worse than their bigger

AKOS STILLER/BLOOMBERG NEWS

fresh headaches for Swiss
banks and dealing a sharp
blow to the financial industry
in Ticino, an Italian-speaking
sliver of Switzerland pinched
between the Alps and Italy’s
northern border.
Switzerland, the world’s big-
gest repository for foreign
wealth, has bled assets in re-
cent years as tax evaders suc-
cumb to pressure from their
home countries and come
clean. Now Italy, in the thick of
an aggressive new tax amnesty
program, is squeezing money
out of Ticino’s banks, long de-
pendent on Italians who
flocked to the Swiss canton, or
state, to avoid the tax man at
home. That is leaving the can-
ton grasping for a new future.
In December, Rome said its
amnesty—which threatened
possible criminal penalties for
to go,” said Paolo Bernasconi, peers. The number of Ticino-
a Swiss tax lawyer and former headquartered private banks
prosecutor based in Ticino. fell 30% from 2007 to 2014,
“Their safest option was to compared with a 20% decline
come clean. There are no more for the rest of Switzerland, ac-
countries that offer the level cording to figures from the
of safety that Switzerland of- Swiss National Bank provided
fered.” by Ernst & Young. The survi-
Last week, Switzerland’s Banks in the city of Lugano, above, have long depended on Italians who wanted to avoid taxes. vors have seen costs mount.
three biggest publicly traded Luca Soncini, chief financial
wealth managers—UBS Group foreign pressure in recent lions of dollars in assets in re- new money had flowed into and risk officer at Lugano-
AG, Credit Suisse Group AG years and are weeding out cent years as Europeans Swiss private banks since 2009. based PKB PrivatBank SA, esti-
and Julius Baer Group AG— money hidden from tax au- withdrew money to pay taxes, Big Swiss banks have been mates that profit margins at
each reported continued out- thorities in a client’s home or closed accounts. able to mobilize their bankers local private banks could fall
flows related to Europe’s tax country. Switzerland’s biggest In response, Swiss banks in northern Italy to convince as much as 30% this year due
crackdown, which is culminat- lenders have systematically have shifted away from their clients to stay with them once to increased costs and compe-
ing with Italy’s efforts. Credit confronted clients from Ger- traditional markets in Europe, they repatriate their money. tition pushing down fees.
Suisse said Thursday it saw many, France and Italy, press- where legacy problems with Julius Baer has retained about Ticino’s financial sector
2.3 billion Swiss francs ($2.3 ing them to declare hidden hidden accounts have been 80% of its Italian assets over “needs to reinvent itself,” said
billion) in related asset out- funds—a process that has abundant, to new regions such the past few years, the bank’s Boris Collardi, chief executive
flows in the fourth quarter of trickled down, to varying de- as Asia. But banks are strug- CEO said in an interview. of Julius Baer and a dual
last year, mainly from Italy. grees, among the country’s gling to make up for the loss of Renato Santi, an executive Swiss and Italian citizen. The
The Italian episode comes smaller private banks. undeclared money. A report board member at BSI SA, Ti- canton is “a very good illustra-
amid a seismic shift for Swiss UBS, Credit Suisse and Ju- published by KPMG in August cino’s biggest bank, reckons tion of the transformation of
banks, which have relented to lius Baer have lost tens of bil- noted that “no meaningful” net the canton’s financial industry Swiss banking,” he said.

Judge to Hear MetLife Challenge

IPO MARKET
Finance Airport-Concessions
Watch Firm Halts Deal
Airport-concessions operator BY RYAN TRACY could be a defining moment,
OTG EXP Inc. postponed its signaling that regulatory re-
planned initial public offering, cit- A central part of the 2010 strictions for those firms will
ing unfavorable stock-market Dodd-Frank financial law is diminish.
conditions. about to get its own stress An FSOC victory, on the
MARK LENNIHAN/ASSOCIATED PRESS

J.P. MORGAN CHASE
Executive Is Fined
Over ‘Whale’ Trades
A U.K. financial regulator
fined a former J.P. Morgan
Chase & Co. executive more
than $1 million for his role in the
“London whale” trading debacle
of 2012 and for his behavior dur-
ing the subsequent inquiry.
The Financial Conduct Au-
thority imposed a £792,900 pen-
alty ($1.1 million) against Achil-
les Macris, who oversaw the unit
responsible for trades that cost
J.P. Morgan more than $6 billion.
The regulator, in a formal notice,
accused Mr. Macris of “failure to
be open” with authorities and
“to disclose properly” financial
risks and other details of the
trades.
In response, Mr. Macris said
in written remarks that he
agreed to the FCA settlement on
the grounds that it didn’t accuse
him of deliberately misleading
authorities.
He also said the settlement
didn’t prohibit him from working
in the “regulated sector” or the
financial industry and said he
was still working to clear his
name.
—Jenny Strasburg
The move strikes another test.
blow to an IPO market that has MetLife Inc. will try to
floundered in 2016. There were persuade a federal
no U.S. IPOs in January, the first judge Wednesday that it
time since September 2011 that shouldn’t be designated
a month passed with no new a “systemically important fi-
listings. nancial institution,” in the
OTG EXP, which owns and first court hearing of a case
operates restaurants inside of with potential either to cur-
airports, had planned a 32.5 mil- tail or to solidify the law’s
lion share offering, which would reach. A ruling is likely
have raised slightly more than months away.
$550 million at the midpoint of The company wants the
its expected price range, accord- court to nullify its SIFI label—
ing to a regulatory filing. The a tag the law created for fi-
company said it postponed its nancial firms that pose a risk
IPO due to market conditions, to the economy and must re-
adding it would “continue to ceive stricter federal over-
evaluate the proposed offering sight. But its broad legal at-
as market conditions develop.” tack also could hamstring the
Many analysts had viewed Financial Stability Oversight
OTG EXP’s planned offering as a Council, the regulatory group
test for the IPO market. created by Dodd-Frank to
The IPO market began weak- identify risky activities and fi-
ening in 2015 following a block- nancial firms, by overturning
buster year powered in part by one of its most significant ac-
the $25 billion debut by Alibaba complishments.
Group Holding Ltd. As stock- MetLife, the largest U.S. life
market volatility picked up in the insurer by assets and known
second half of 2015, investors in- for its smiling Snoopy mascot,
creasingly steered clear of IPOs. has hired a lawyer with a bull-
Companies such as luxury re- dog track record of overturn-
tailer Neiman Marcus Group Inc. ing Dodd-Frank rules in court:
and grocery chain Albertsons Eugene Scalia, a partner at
Cos. Inc. delayed going public. Gibson Dunn & Crutcher LLP
—Corrie Driebusch and a son of Supreme Court
Insurer MetLife is the first SIFI to sue the oversight council.
Justice Antonin Scalia.
The lawsuit, filed in Janu-
ary 2015, stems from a 9-1
vote by the oversight coun-
cil in December 2014 to desig-
nate MetLife as a SIFI, sending
the company to the Federal
Reserve for potentially stiff
capital and other require-
ments that have yet to be de-
termined.
MetLife is the first SIFI to
sue the oversight council. If it
succeeds in upending its SIFI
designation, it may not be the
last. Three other SIFIs—insur-
ers American International
Group Inc. and Prudential Fi-
nancial Inc. and General Elec-
tric Co.’s financing arm, GE
Capital—are watching the case
closely and would likely
mount their own challenges if
MetLife prevails.
Already, the tougher regula-
other hand, would protect
what Dodd-Frank proponents
consider a major accomplish-
ment of the law: extend-
ing broad federal supervision
to major financial firms
that operated before the finan-
cial crisis without a regulator
watching over their consoli-
dated operations.
“If the court adds new obli-
tion expected to come gations or makes it harder for
with SIFI status is causing ma- FSOC to” designate SIFIs, “it
jor changes at GE and MetLife, would be undoing, rewriting
and possibly AIG. In April or undermining arguably the
2015, GE made one of the big- most significant part of Dodd-
gest strategic moves in its his- Frank,” said Robert Jackson, a
tory by laying plans to get out Columbia University law pro-
of the banking business—at fessor who worked at the
the heart of its SIFI designa- Treasury Department during
tion—and refocus on its indus- the development of the law.
trial operations. Mr. Jackson filed a legal brief
Last month, MetLife an- last year supporting FSOC.
nounced a plan driven by both A decision by Judge Rose-
strategy and regulatory rea- mary M. Collyer of the U.S.
sons to divest itself of a chunk District Court for the District
of its operations so that it of Columbia likely would be
could be small enough to appealed by the losing side, so
avoid the SIFI tag. her opinion isn’t the last chap-
AIG is resisting a proposal ter in the case. Judge Collyer,
by activist investor Carl Icahn appointed to the court by
to break into three parts as a President George W.
way to shed its SIFI designa- Bush, doesn’t have an ideolog-
tion, saying such a split isn’t ical reputation.
in shareholders’ best interests. —Leslie Scism
A legal victory for MetLife contributed to this article.

OIL “The race is between decel-

erating supply and decelerat-
“I don’t think we can rely
on low prices driving much in-

Continued from page C1
pockets of significant demand.”
The main concern has been
weaker economic growth in
China, which is responsible for
much of the oil demand in
emerging markets. But other
oil consumers in the emerging
world also are pulling back
amid sluggish global growth.
In the Mideast, some countries
have cut gasoline subsidies as
revenue from oil exports dwin-
dles, which could curtail con-
sumer demand there.
Economies in Brazil and
Russia, both oil exporters,
shrank in 2015, and their oil
consumption fell as well. Unex-
pectedly sluggish growth in
emerging-market economies
would be a major obstacle to oil
prices rebounding, analysts say.
“Demand concerns are ev-
erywhere,” said Harish Sun-
daresh, portfolio manager at
Loomis, Sayles & Co., which
Love
ing demand,” said Bill Herbert, cremental demand from this
analyst at Simmons & Co. In- point,” Mr. Bake said. “A lot Adjustable
ternational. “Everybody is 95% of…demand destruction has Headrest
focused on supply.…But we’ve occurred in the commodity-
got demand slowing as well.” based economies.”
Simmons recently cut its U.S. oil prices already are
global oil-demand growth
forecast for 2016 to 800,000
barrels a day, which would
represent a 0.8% growth rate.
down 25% this year, which
some analysts say could spur
more demand. But demand
growth has slowed in recent
at first sit
That is below widely watched months, sparking concerns Proprietary
Breathable Mesh Visionary design and engineering
forecasters IEA and the U.S. that low prices are no longer
Energy Information Adminis- encouraging more buying com-
tration, which expect demand pared with a year ago, when have come together
to grow 1.2 million and 1.4 mil- prices already had fallen sig- to produce a chair
lion barrels a day, respectively. nificantly. Global consumption
Trading house Vitol expects grew by 800,000 barrels a day so ergonomically perfect,
demand growth between in the fourth quarter from the
800,000 and one million bar- prior year, according to the so completely re-imagined
rels a day this year, said Chris- IEA, a 64% drop in the growth
that it exists in a
topher Bake, a member of the rate from the third quarter. Intuitive
company’s executive commit- Part of the fourth-quarter Fingertip
category all its own.
tee, at International Petroleum slowdown was due to warm Controls
Week in London on Tuesday. weather. But the IEA also
blamed “weakening macroeco- This is no mere office chair.
Fully
nomic conditions in China, Bra- Adjustable
zil, Russia and other commod- Lumbar This is Vaya.
Support
ity-dependent economies,”
according to its January report.
HAIDAR MOHAMMED ALI/AGENCE FRANCE-PRESSE/GETTY IMAGES

manages $229 billion. Unlike in developed nations,

As for supply, many ana-
lysts forecast the oil glut that
sent prices sliding in mid-2014
could ease by the end of 2016.
Output in the U.S. and other
regions is expected to slow
this year, allowing bloated in-
ventories to start shrinking.
But many analysts say de-
mand growth this year is diffi-
cult to predict. If consumption
comes in lower than expected
due to weak economic growth,
particularly in emerging mar-
kets, any oil-price recovery
could be pushed to 2017 or
later, they say.
where cheap gas prices en-
A Ken Okuyana Design
courage drivers to take road
trips or buy larger vehicles,
lower oil prices don’t neces-
sarily translate into cheaper
fuel costs in emerging econo-
mies. The IEA in January said
because some subsidies that
had lowered what consumers
paid in some Middle Eastern
countries have been cut, the
agency expects oil demand in
the region to grow more Die-Cast Aluminum
slowly this year. In other Back and Base Exclusively from Positive Posture
countries, a weakening cur- Made in Japan 888-725-1799 vayachair.com
rency has undercut savings
A worker at an Iraqi oil refinery from lower oil prices.
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
C4 | Wednesday, February 10, 2016 * *** THE WALL STREET JOURNAL.

IN THE MARKETS
Stocks Rebound but Still End Day Lower
Dow falls 12.67 points, 3.07, or 3.6%, to 82.92. tinue to grapple with lower re-
Media shares lagged, with turns and higher volatility.
as investors show the index of S&P 500 media Investors will be closely
reluctance to invest companies falling 2%. watching U.S. Federal Reserve
Viacom was the biggest de- Chairwoman Janet Yellen’s tes-
money aggressively cliner in the S&P 500. Shares timony before Congress
dropped 8.99, or 21%, to Wednesday and Thursday for
BY LESLIE JOSEPHS 32.86—its lowest close since clues on whether the Fed will
September 2010—after the continue to raise interest rates.
U.S. stocks rebounded from company reported lower profit But some investors are
session lows but ended down and revenue. questioning whether concerns
slightly, as investors remained Shares of 21st Century Fox about growth are too great for
cautious amid this year’s fell 45 cents, or 1.9%, to 24.14, asset prices to rise, even if the
broad tumble. after it reported a drop in rev- Fed keeps interest rates low
The Dow Jones Industrial enue and profit Monday. Until and other central banks in-
Average slipped 12.67 points, 2013, 21st Century Fox was crease stimulus measures.
or less than 0.1%, to 16014.38, part of the same company as Investors are asking if “the
MICHAEL DWYER/ASSOCIATED PRESS

after falling close to 146 Wall Street Journal-owner policy well is a little bit dry,”
points earlier in the day. The News Corp. said Sage Advisory’s Mr. Wil-
S&P 500 declined 1.23 points, Elsewhere, Wendy’s shares liams.
less than fell 44 cents, or 4.3%, to 9.71 —Riva Gold
TUESDAY’S 0.1%, to even as the fast-food com- contributed to this article.
MARKETS 1852.21. The pany’s profit rose more than
Nasdaq Com- expected. AUCTION RESULTS
Here are the results of Tuesday's Treasury auctions.
posite fell In Asia, Japan’s Nikkei All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
14.99 points, or 0.3%, to Stock Average slid more than between that price and the face value.
4268.76. Wendy’s shares fell 4.3%, although the company reported stronger-than-expected profit. 5% and the yield on the bench- FOUR-WEEK BILLS
Investors were hesitant to mark 10-year Japanese gov- Applications $195,462,014,500
Accepted bids $55,000,037,000
buy aggressively, reflecting paring down their exposure to tracks U.S. government debt U.S. currency fell 0.6% against ernment bond dropped into " noncompetitively $266,293,700
concerns about the potential stocks in favor of investments that matures within that time Japan’s yen to ¥115.12. negative territory for the first " foreign noncompetitively $0
Auction price (rate) 99.979389
for gains going forward given considered safer, such as U.S. period. At the same time, some fa- time. (0.265%)
the steep downward trend so government debt. The yield on the 10-year miliar trouble spots flared up The Stoxx Europe 600 fell Coupon equivalent 0.269%
Bids at clearing yield accepted 28.29%
far in 2016. The Dow fre- “Clients just want a Treasury note edged lower to Tuesday. 1.6% to its lowest level since Cusip number 912796HF9
quently flip-flopped between smoother ride here,” said Rob- 1.728%, its lowest level in The S&P 500’s index of en- October 2013, extending its The bills, dated Feb. 11, 2016, mature on March 10,
positive to negative territory ert Williams, a managing di- more than a year, compared ergy companies fell 2.5% as losing streak to seven sessions 2016.
Tuesday after two sessions of rector at Sage Advisory Ser- with 1.736% Monday. Yields U.S. oil futures fell 5.9% to in a row. THREE-YEAR NOTES
losses and is down more than vices. Mr. Williams said the fall as prices rise. $27.94 a barrel. “There’s no shortage of Applications $67,697,227,900
Accepted bids $25,884,497,900
8% this year. firm has been reducing expo- Gold futures rose for a fifth Anadarko Petroleum things for investors to worry " noncompetitively $61,217,800
“There’s a lot of anxiety out sure to the U.S. stock market session, gaining less than 0.1% shares declined, $2.81, or 7%, about,” said David Stubbs, " foreign noncompetitively $0
Auction price (rate) 99.722361
there now,” said Randy Fred- broadly and high-yield debt to $1,198.70 a troy ounce, the to $37.24 after the oil com- global market strategist at J.P. (0.844%)
erick, managing director of and instead is planning on highest settlement level since pany announced it would slash Morgan Asset Management, Interest rate 0.750%
Bids at clearing yield accepted 25.96%
trading and derivatives at buying this month the iShares last June. its dividend. adding that while he doesn’t Cusip number 912828P53
Charles Schwab. 3-7 Year Treasury Bond ex- The euro rose 0.9% against Chevron was the biggest expect a U.S. recession this The notes, dated Feb. 16, 2016, mature on Feb. 15,
Some investors have been change-traded fund, which the dollar to $1.1294, while the laggard in the Dow, shedding year, investors likely will con- 2019.

YEN yen. That helps make Japanese

goods more competitive over-
seas and inflates the value in
yen terms of the dollars that
Continued from page C1 companies earn overseas. Cur-
most important pillars of ‘Abe- rency shifts have helped propel
nomics’ is fading.” Japanese corporate profits to
On Tuesday, Japan’s bench- records in recent quarters.
mark 10-year government-bond In theory, the Bank of
yield fell into negative territory Japan’s move to negative rates
stitute Chief Economist Takeshi
Minami said that the U.S.
wouldn’t necessarily welcome a
move by Japan to weaken the
Already low rates haven’t
spurred much lending inside
Japan because companies and
individuals are sitting on
yen now. mounds of cash. Deposits at
Some economists say nega- commercial banks reached a re-
tive interest rates will eventu- cord of nearly ¥700 trillion
ally push investors to sell gov- ($6.04 trillion) last year, ac-
ernment bonds and buy other cording to the Bank of Japan.
assets such as stocks and real Some economists predict

FRANCK ROBICHON/EUROPEAN PRESSPHOTO AGENCY

for the first time, and the Nik- should have pushed market estate, spurring investment. Mr. Kuroda will lower rates fur-
kei Stock Average fell 5.4%, its participants into higher-yield- Low interest rates also could ther into negative territory,
biggest percentage drop since ing currencies such as the dol- help Japan’s economy by mak- perhaps as soon as March.
June 2013. Japan joins Switzer- lar or those in emerging mar- ing it easier for businesses and But Yuji Kameoka, an analyst
land as the only countries kets. When the European the government to borrow. at Daiwa Securities Co., said
where the 10-year government- Central Bank introduced a simi- “If interest rates go negative the Bank of Japan likely doesn’t
bond yield is negative. Early lar policy in 2014, it helped and we’re penalized, money in have much room to cut interest
Wednesday, the Nikkei was weaken the euro against the deposits should move into rates further because of the po-
down more than a further 2%, dollar. some kind of investment,” said tential squeeze on bank earn-
while 10-year JGBs were still Instead, concerns about Koji Nagai, chief executive of ings.
trading at a negative yield. overseas economies have Nomura Holdings Inc. “Funda- —Ken Brown,
From its start more than caused investors to buy the mentally it should be how it Takashi Nakamichi
three years ago, Abenomics got yen, usually seen as a haven as- works, but we don’t know if it’s and Hiroyuki Kachi
much of its fuel from a weak set. Norinchukin Research In- going to work that way.” contributed to this article. Prime Minister Shinzo Abe’s stimulus plan relies on a weak yen.

Biggest 1,000 Stocks | WSJ.com/stocks

Net Net Net Net Net Net
Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
s ConEd ED 73.61 0.53 FirstDataClA FDC 11.10 0.02 JPMorganChase JPM 56.20 -0.34 t Moodys MCO 80.03 0.65 Qihoo360Technology QIHU 68.83 0.20 SunocoLogistics SXL 17.19 -0.62
How to Read the Stock Tables ConstBrands A STZ 136.09 1.14 FirstRepublicBank FRC 57.90 -2.01 JacobsEngineering JEC 35.50 -0.21 t MorganStanley MS 22.93 0.26 t QuestDiag DGX 60.55 0.01 t SunTrustBanks STI 33.16 0.56
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed ConstBrands B STZ/B 138.00 3.24 FirstEnergy FE 33.32 0.12 JamesHardieADR JHX 11.11 -0.22 Mosaic MOS 23.86 0.28 Questar STR 24.90 -0.10 t SynchronyFinancial SYF 25.08 0.60
securities. Prices are composite quotations that include primary market trades as well as trades ContinentalRscs CLR 18.18 -0.41 FleetCorTechs FLT 113.87 -3.50 Jarden JAH 48.93 -0.06 MotorolaSolutions MSI 62.24 0.15 t QuintilesTransnat Q 56.70 0.79 SyngentaADR SYT 80.15 -0.25
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Cooper COO 128.00 2.58 FlwrsFoods FLO 20.37 0.31 JohnsJohns JNJ 101.97 -0.03 NTTDoCoMoADR DCM 23.74 -0.06 RELXADR RENX 15.74 0.23 Sysco SYY 42.61 -0.51
Exchange, ISE and BATS. NVR 1550.13 t TEConnectivity TEL 52.27 -0.13
The list comprises the 1,000 largest companies based on market capitalization. CoreLabs CLB 96.17 -7.76 Flowserve FLS 39.59 -0.80 JohnsonControls JCI 35.33 -0.07 NVR -3.93 RELXADR RELX 16.81 0.30
Underlined quotations are those stocks with large changes in volume compared with the issue’s Corning GLW 18.47 0.51 Fluor FLR 43.16 0.38 t JonesLangLaSalle JLL 104.92 0.76 NationalGridADR NGG 69.10 -0.41 t RPM RPM 38.12 0.29 t TEGNA TGNA 21.37 -0.54
average trading volume. CotyClA COTY 27.41 0.72 FomentoEconMexADR FMX 87.25 -0.90 JoyGlobal JOY 10.75 -0.31 NtlOilwellVarco NOV 27.56 -0.84 t RalphLaurenA RL 83.70 -1.53 TELUS TU 28.60 -0.21
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous Credicorp BAP 98.49 0.92 FootLocker FL 63.64 -0.87 JuniperNetworks JNPR 21.99 0.02 s NtlRetailProp NNN 44.49 0.78 RangeResources RRC 28.04 -2.62 TERNIUMADR TX 11.91 -0.29
closing price was $2 or higher. t CreditSuisseADR CS 13.47 -0.97 FordMotor F 11.35 -0.24 KARAuctionServices KAR 32.15 -0.01 t NetSuite N 53.66 -0.50 RayJamFnl RJF 42.40 0.46 TJX TJX 69.65 1.84
Footnotes: listing standards vj-In bankruptcy or CrescentPntEnrg CPG 10.02 -0.56 t ForestCityRealtyA FCE/A 16.78 -0.52 KBFinancialGrpADR KB 23.62 -0.27 NewOrientalEducADR EDU 28.86 -0.33 Raytheon RTN 126.39 0.54 TaiwanSemiconADR TSM 22.56 -0.24
s-New 52-week high. lf-Late filing receivership or being t CrestwoodEquity CEQP 9.15 -1.47 t ForestCityRealtyB FCE/B 16.79 -0.44 KKR KKR 12.62 -0.31 NY CmntyBcp NYCB 15.46 0.03 t RealogyHoldings RLGY 28.83 -0.53 Target TGT 69.86 -0.14
t-New 52-week low. q-Temporary exemption from reorganized under the CrownCastl CCI 82.20 0.50 FortBrandsHomeSec FBHS 45.61 0.32 KTADR KT 11.72 -0.08 t Newell NWL 34.27 0.01 RealtyIncome O 56.36 0.19 TaroPharm TARO 135.72 -2.51
dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities CrownHoldings CCK 44.79 0.58 Franco-Nevada FNV 51.53 -1.64 KSCitySo KSU 78.59 1.33 NewfldExpl NFX 23.80 -1.67 RedHat RHT 61.60 0.67 TataMotorsADR TTM 22.96 -0.83
recent four quarters. t-NYSE bankruptcy assumed by such companies. CubeSmart CUBE 27.81 0.11 FranklinResources BEN 32.09 -0.37 Kellogg K 71.40 0.09 NewmontMining NEM 24.30 -0.89 RegencyCtrs REG 71.05 0.56 TaubmanCtr TCO 67.04 -1.77
FD-First day of trading. v-Trading halted on primary KEY 10.64 0.09 s NextEraEnergy NEE 115.35 1.18 TecoEnergy TE 27.36 0.18
h-Does not meet continued market. Cummins CMI 99.70 1.27 Freeport-McMoRan FCX 5.00 -0.27 KeyCp RegionsFinancial RF 7.65 0.12
DDR Corp DDR 16.24 0.03 FreseniusMedADR FMS 41.46 0.53 t KilroyRealty KRC 48.17 -1.97 t Nidec ADR NJ 15.78 -0.35 ReinsuranceGrp RGA 84.69 0.41 TelecomItaliaADR TI/A 7.86 0.26
DTEEnergy DTE 86.85 0.63 Gallagr AJG 37.82 -0.36 s KimberlyClark KMB 130.79 1.36 NielsenHoldings NLSN 45.13 0.41 RelianceStl RS 57.46 -0.41 TelecomItaliaADR TI 9.77 0.41
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. Danaher DHR 85.19 1.05 Gap GPS 23.27 -0.72 KimcoRealty KIM 27.02 0.16 NikeClB NKE 55.68 0.64 RenaissanceRe RNR 113.15 0.55 Teleflex TFX 134.03 0.75
Darden DRI 58.48 -1.06 Gartner IT 80.94 0.88 KinderMorgan KMI 14.61 -0.31 NipponTelegraphADR NTT 44.07 -0.21 RepublicServices RSG 43.84 0.42 TelefonicaBrasADR VIV 8.84 -0.10
Tuesday, February 9, 2016 Net Net t DaVitaHlthcrPtrs DVA 62.25 0.01 Gazit-Globe GZT 7.70 ... KingDigitalEnt KING 17.96 0.03 NiSource NI 21.24 0.33 ResMed RMD 57.18 0.44 TelefonicaADR TEF 9.74 -0.53
Net Stock Sym Close Chg Stock Sym Close Chg Deere DE 78.08 1.01 GenDynam GD 132.13 -0.13 Kohl's KSS 41.40 -1.21 NobleEnergy NBL 27.86 -0.50 t RestaurantBrands QSR 30.25 -0.48 TelekmIndonesiaADR TLK 49.36 -0.77
Stock Sym Close Chg GE 28.28 0.11 KoninklijkePhilADR PHG 24.45 -0.16 NokiaADR NOK 5.88 0.04 ReynoldsAmer RAI 47.69 0.61 TenarisADR TS 19.92 -0.98
AquaAmerica WTR 32.02 0.17 CBRE Group CBG 23.32 -0.04 DelhaizeGroupADR DEG 24.41 0.07 GenElec
Aramark ARMK 30.21 0.39 CBSClA CBS/A 47.63 -0.62 t DelphiAutomotive DLPH 57.64 0.63 GeneralGrowthProp GGP 25.00 -0.80 KoreaElcPwrADR KEP 21.60 -0.09 t NomuraHoldingsADR NMR 4.42 -0.12 RioTinto ADR RIO 25.36 -1.07 Tesoro TSO 73.62 0.67
NYSE t ArcelorMittalADR MT 3.23 -0.29 CBSClB CBS 42.65 -1.71 DeltaAir DAL 41.98 1.21 GeneralMills GIS 55.94 0.22 Kroger KR 36.73 -0.09 Nordstrom JWN 50.34 -0.51 RiteAid RAD 7.76 0.01 t TesoroLogistics TLLP 38.36 -1.65
ArcherDan ADM 33.58 0.28 CFIndustries CF 28.47 0.46 t DeutscheBank DB 15.38 -0.16 GeneralMotors GM 27.87 -0.81 t KyoceraADR KYO 38.53 -0.50 NorfolkSouthern NSC 71.42 0.93 t RobHalfIntl RHI 38.22 -0.76 TevaPharmADR TEVA 57.67 0.74
ABBADR ABB 16.98 -0.17
ArrowElec ARW 52.91 -1.51 CGI Gp A GIB 41.21 0.82 DevonEnergy DVN 22.66 -1.02 Genpact G 25.04 0.03 LBrands LB 82.31 1.20 NorthropGrumman NOC 187.32 1.70 Rockwell ROK 97.27 -0.13 Textron TXT 32.03 -0.45
ADTCorp. ADT 27.40 0.40
ASH 91.49 -0.37 CIT 26.74 0.08 DiageoADR DEO 103.55 0.25 GenuineParts GPC 86.39 1.12 LGDisplayADR LPL 8.64 -0.13 t Novartis ADR NVS 72.62 -0.56 RockwellCollins COL 80.75 -0.42 ThermoFisherSci TMO 124.45 2.51
AES AES 9.51 0.07 Ashland CIT Grp
Assurant AIZ 76.49 0.26 CMSEnergy CMS 39.87 0.03 DicksSprtgGds DKS 37.88 -0.09 Gildan GIL 22.71 -0.16 L-3Communications LLL 118.15 0.95 NovoNordiskADR NVO 46.58 -0.44 RogerComm B RCI 34.11 0.41 ThomsonReuters TRI 35.62 -0.22
Aflac AFL 57.93 -0.07
s AGLResources GAS 64.66 AstraZenecaADR AZN 28.59 -0.10 t CNAFinancial CNA 30.10 -0.42 DigitalRealtyTrust DLR 77.15 -1.34 GlaxoSmithKlineADR GSK 39.34 -0.13 LabCpAm LH 102.53 1.59 Nucor NUE 38.91 -0.48 RollinsInc ROL 24.88 -0.62 3M MMM 154.74 0.84
0.12
s AtmosEnergy ATO 70.80 0.95 CNOOCADR CEO 94.65 -1.65 DiscoverFinSvcs DFS 45.87 0.76 GlblPymts GPN 52.47 -0.07 LasVegasSands LVS 39.58 -0.95 NuSTAREnergy NS 28.74 -0.72 RoperTechnologies ROP 161.83 -0.04 Tiffany TIF 62.17 -0.75
AT&T T 36.65 -0.46
t Autoliv ALV 97.97 1.26 CPFLEnergiaADR CPL 8.25 -0.07 t Disney DIS 92.32 0.20 Goldcp GG 14.16 -0.54 t Lazard LAZ 30.48 -1.21 OGEEnergy OGE 26.28 -0.27 RoyalBkCanada RY 48.73 -1.02 TimeWarnerCable TWC 180.59 2.86
AbbottLabs ABT 37.00 -0.46 t TimeWarner TWX 63.21 -4.09
AbbVie ABBV 53.48 0.59 AutoNation AN 46.44 1.73 t CRHADR CRH 23.89 0.17 DollarGeneral DG 69.52 -0.19 t GoldmanSachs GS 148.25 -1.00 LearCorp LEA 97.00 2.02 ONEOK OKE 20.63 -2.53 t RoyalBkScotlandADR RBS 6.55 -0.11
CVSHealth CVS 90.51 0.86 DominionResources D 70.43 0.94 GraceWR GRA 68.31 3.36 Leggett&Platt LEG 40.96 0.48 ONEOKPartners OKS 25.88 -1.63 RoyalCaribbean RCL 68.02 1.73 t Toll Bros TOL 25.05 -0.08
AccentureClA ACN 93.32 -1.75 AutoZone AZO 697.58 2.12
AcuityBrands AYI 180.01 2.79 Avalonbay AVB 161.11 -2.44 Cablevision CVC 31.62 -0.14 Dominos DPZ 105.62 -2.54 Grainger GWW 209.79 -0.53 t LennarClA LEN 38.42 -0.02 OccidentalPetrol OXY 65.22 -0.97 RoyalDutchADRA RDS/A 42.64 -1.86 Torchmark TMK 51.11 -0.13
AdvanceAuto AAP 141.50 0.05 Avangrid AGR 41.24 -0.23 CabotO&G COG 19.59 -1.33 t DouglasEmmett DEI 26.46 -0.73 GreatPlainsEnergy GXP 28.95 0.15 t LennarClB LEN/B 31.21 -0.17 Och-ZiffCapMgmt OZM 4.55 -0.08 RoyalDutchADRB RDS/B 42.62 -1.90 TorontoDominionBk TD 36.23 -0.74
AdvSemiEnggADR ASX 5.04 -0.11 AveryDennison AVY 62.89 1.56 Calpine CPN 14.58 0.44 Dover DOV 58.13 -1.54 GpoAeroportuarADR PAC 79.04 -0.35 LennoxIntl LII 113.97 -0.50 OldRepublic ORI 17.55 0.10 SAPADR SAP 74.88 0.57 TotalADR TOT 41.40 -1.43
t AegonADR AEG 4.83 -0.40 t Aviva ADR AV 11.87 -0.18 CamdenPropertyTr CPT 72.65 0.02 DowChemical DOW 46.60 0.37 GpoAvalAccionesADR AVAL 6.23 -0.02 t LeucadiaNational LUK 14.96 -0.49 t OmegaHealthcare OHI 27.52 -2.52 SINOPECShanghaiADR SHI 39.22 -0.09 TotalSystemSvcs TSS 38.51 0.16
t AerCapHoldings AER 26.79 AVT 38.87 -0.50 CCJ 10.86 -0.62 DrPepperSnap DPS 90.32 1.33 GpFinSantandMexADR BSMX 7.00 -0.26 Level3Comm LVLT 44.32 1.58 OmnicomGroup OMC 71.62 1.90 SKTelecomADR SKM 18.96 -0.06 ToyotaMotorADR TM 106.84 -2.29
1.25 Avnet Cameco
t Aetna AET 97.20 2.89 t AxaltaCoatingSys AXTA 21.76 0.71 CameronIntl CAM 62.12 -1.52 DrReddysLabADR RDY 41.92 -2.66 t GrupoTelevisaADR TV 23.51 -0.59 LibertyPropertyTr LPT 27.57 -0.54 OpkoHealth OPK 7.76 0.06 t SLGreenRealty SLG 81.19 -2.69 TransCanada TRP 34.44 -0.48
t AffiliatedManagers AMG 119.94 s CampbellSoup CPB 57.21 0.98 DuPont DD 59.08 0.93 HCAHoldings HCA 66.50 -0.27 EliLilly LLY 73.74 -0.45 Oracle ORCL 35.08 -0.53 Salesforce.com CRM 57.33 3.28 t TransdigmGrp TDG 187.29-27.34
-0.42 AxisCapital AXS 52.20 0.03
AgilentTechs A 35.37 0.57 BB&T BBT 31.60 0.27 CIBC CM 62.11 -1.40 DukeEnergy DUK 78.93 -0.24 t HCP HCP 28.33 -5.66 t LincolnNational LNC 33.80 0.40 OrangeADR ORAN 16.59 -0.06 SallyBeauty SBH 30.18 -0.34 TravelersCos TRV 105.92 0.32
AgnicoEagleMines AEM 33.11 -0.80 BCE BCE 41.88 0.03 CanNtlRlwy CNI 55.12 1.18 DukeRealty DRE 18.96 -0.37 HDFCBankADR HDB 57.02 0.20 t LinkedInA LNKD 100.98 -8.99 OrbitalATK OA 84.26 -0.49 t SanofiADR SNY 38.87 -0.34 TreeHouseFoods THS 77.58 1.21
t Agrium AGU 83.69 -0.32 BHPBillitonADR BHP 21.79 -0.92 CndNatRes CNQ 20.26 -0.72 EMC EMC 24.17 -0.03 t HP HPQ 9.19 -0.18 t LloydsBankingADR LYG 3.42 -0.05 OrixADR IX 65.99 -1.28 SasolADR SSL 25.46 ... TurkcellIletismADR TKC 8.98 -0.15
AirProducts&Chems APD 132.46 1.71 BHPBillitonADR BBL 19.43 -1.06 CanPacRlwy CP 124.10 2.25 t ENIADR E 26.22 -0.96 t HSBCHoldingsADR HSBC 31.63 -0.24 LockheedMartin LMT 215.98 1.45 OwensCorning OC 41.93 0.79 SCANA SCG 65.28 0.80 TurquoiseHillRscs TRQ 1.98 -0.04
36.38 0.06 Schlumberger SLB 67.80 -1.98 t Twitter TWTR 14.40 -0.50
Airgas ARG 140.14 -0.36 BPADR BP 28.95 -0.97 CanonADR CAJ 27.75 -0.39 EOG Res EOG 65.59 -2.84 Halliburton HAL 29.59 -1.24 Loews L PG&E PCG 55.92 -0.38
AlaskaAirGroup ALK 65.63 2.57 BRFADR BRFS 12.62 -0.32 CapOneFnl COF 62.42 1.53 EQT EQT 56.97 -2.80 Hanesbrands HBI 24.03 0.21 Lowe's LOW 64.15 0.60 t PNC FnlSvcs PNC 82.20 0.43 t SchwabC SCHW 23.34 -0.27 TycoInternational TYC 34.65 -0.08
Albemarle ALB 49.89 1.10 BTGroupADR BT 33.52 0.33 CardinalHealth CAH 76.65 0.49 EQTMidstreamPtrs EQM 67.02 -1.75 HarleyDavidson HOG 38.71 -0.59 LuxotticaGroupADR LUX 55.59 0.59 POSCOADR PKX 36.00 -0.87 ScrippsNetA SNI 55.00 -4.52 TylerTechnologies TYL 131.67 -0.81
LyondellBasell LYB 75.72 ... s TysonFoodsClA TSN 60.85 0.69
AlcatelLucentADR ALU 3.31 -0.11 BakerHughes BHI 41.75 -1.07 Carlisle CSL 85.83 -0.70 EastmanChemical EMN 58.43 -0.34 HarmanIntlInds HAR 67.64 0.18 PPG Ind PPG 90.99 1.34 SealedAir SEE 40.43 0.98
M&T Bnk MTB 107.52 1.62 t UBSGroup UBS 14.18 -0.58
Alcoa AA 7.81 -0.09 Ball BLL 65.15 1.26 CarMax KMX 42.86 0.21 EatonCorp.PLC ETN 54.48 -0.63 Harris HRS 72.73 -0.29 PPL PPL 36.13 0.14 SempraEnergy SRE 95.90 0.80
Alere ALR 53.14 -0.06 BancoBilbaoVizADR BBVA 6.09 -0.20 t Carnival CCL 42.97 1.05 Ecolab ECL 107.20 3.58 HrtfrdFnl HIG 40.00 0.41 t MGMResortsIntl MGM 16.56 -0.31 PVH Corp. PVH 71.09 -0.79 ServiceCp SCI 22.13 -0.16 UDR UDR 33.42 -0.48
t AlexREEq ARE 72.10 -2.51 BancodeChileADR BCH 60.81 -0.79 t Carnival ADR CUK 44.76 0.88 EcopetrolADR EC 6.01 -0.27 HealthNet HNT 61.94 1.07 t MPLX MPLX 18.05 -0.40 PackCpAm PKG 49.84 0.11 ServiceMasterGlb SERV 35.73 0.60 UGI UGI 36.03 0.19
AlibabaGroupADR BABA 61.39 0.29 BcoSantChileADR BSAC 16.64 -0.27 Carters CRI 85.81 -2.80 EdgewellPersonal EPC 73.90 -0.02 Helmerich&Payne HP 48.02 -1.62 MSCI MSCI 65.08 1.92 PaloAltoNetworks PANW118.06 2.37 ServiceNow NOW 48.52 1.38 UltraparPartADR UGP 14.37 -0.15
Alleghany Y 457.55 1.08 BancoSantanderADR SAN 3.82 -0.08 Caterpillar CAT 63.93 -0.65 EdisonInt EIX 63.40 0.50 Hershey HSY 89.82 -0.19 Macerich MAC 74.92 -0.23 ParkerHannifin PH 99.73 -1.36 ShawCom B SJR 16.81 -0.14 UnderArmour A UA 72.35 -0.21
Allegion ALLE 54.28 0.51 BanColombiaADR CIB 28.69 -0.50 Celanese A CE 57.54 1.13 EdwardsLife EW 76.34 -0.63 Hess HES 38.70 -0.29 t MacquarieInfr MIC 54.10 -3.00 PartnerRe PRE 140.35 ... SherwinWilliams SHW 252.43 5.80 UnileverADR UN 42.34 -0.13
Allergan AGN 272.34 6.04 t BankAm BAC 12.20 -0.07 CemexADR CX 4.43 -0.15 Embraer ADR ERJ 28.55 -0.01 HewlettPackardEnt HPE 12.72 0.21 Macys M 39.51 -0.14 PearsonADR PSO 10.82 -0.24 ShinhanFinADR SHG 31.72 -0.47 UnileverADR UL 42.73 -0.30
t AllianceData ADS177.12 -6.62 BkMntrl BMO 51.51 -1.30 CencosudADR CNCO 6.09 -0.39 EmersonElectric EMR 46.91 -0.15 HiltonWorldwide HLT 17.64 0.16 MagelnPtnrs MMP 59.43 -2.32 PembinaPipeline PBA 21.44 -0.61 t SignetJewelers SIG 96.28 -4.16 UnionPacific UNP 77.12 1.09
t AllncBrnstnHldg AB 17.27 0.47 t BankNY Mellon BK 33.60 0.30 t CenovusEnergy CVE 10.62 -0.59 EmpresaNacADR EOC 38.53 0.13 HollyFrontier HFC 31.04 0.22 t MagnaInt MGA 31.37 -0.08 Pentair PNR 45.20 -0.43 SilverWheaton SLW 14.16 -0.53 UnitedContlHldgs UAL 46.48 0.80
Mallinckrodt MNK 63.01 -2.13 UnitedMicroADR UMC 1.93 -0.03
s AlliantEnergy LNT 68.35 0.40 BkNovaScotia BNS 38.99 -0.99 t Centene CNC 55.51 1.79 EnbridgePtnr EEP 16.00 -0.27 HomeDepot HD 113.86 2.01 PepcoHoldings POM 26.20 -0.23 SimonPropertyGroup SPG 178.93 -3.55
ManpowerGroup MAN 73.31 1.10 UtdParcel B UPS 97.53 0.23
Allstate ALL 63.01 -0.32 t BarclaysADR BCS 9.14 -0.38 CenterPointEnergy CNP 18.55 0.12 Enbridge ENB 32.24 -1.09 t HondaMotorADR HMC 25.32 -0.53 PepsiCo PEP 98.28 0.76 SixFlagsEnt SIX 47.75 0.16
t UnitedRentals URI 44.78 -1.83
AllyFinancial ALLY 16.20 -0.25 Bard CR BCR 181.44 1.79 CenturyLink CTL 24.81 -0.82 Encana ECA 3.83 -0.38 Honeywell HON 102.72 1.19 ManulifeFinancial MFC 12.64 -0.44 PerkinElmer PKI 42.47 1.02 SkechersUSAClA SKX 26.88 0.03
s HormelFoods HRL 82.86 t MarathonOil MRO 7.29 -0.53 US Bcp USB 39.40 -0.13
AltriaGroup MO 60.45 0.33 BarrickGold ABX 11.22 -0.69 Chevron CVX 82.92 -3.07 EngyTrnsfrEqty ETE 4.57 0.52 1.46 Perrigo PRGO 138.77 0.95 SmithAO AOS 63.74 0.77
AlumofChinaADR ACH 7.81 -0.08 Baxalta BXLT 36.78 0.32 ChinaEasternAirADR CEA 21.48 0.18 t EnergyTransfer ETP 20.34 0.53 t DR Horton DHI 24.04 0.56 t MarathonPetroleum MPC 31.40 0.67 PetroChinaADR PTR 56.45 -0.75 t Smith&NephewADR SNN 31.18 0.30 US Steel X 7.34 -0.38
AmbevADR ABEV 4.45 -0.11 BaxterIntl BAX 36.19 0.19 t ChinaLifeInsADR LFC 10.62 -0.07 Enerplus ERF 2.85 -0.19 HostHotels&Resorts HST 13.85 0.09 MarineHarvestADR MHG 13.22 0.12 PetroleoBrasilADR PBR 2.99 -0.13 Smucker SJM 127.35 1.66 UnitedTech UTX 87.24 0.46
t HuanengPowerADR HNP 29.96 -0.45 MKL 830.45 9.93 SNA 135.78 0.37 UnitedHealthGroup UNH 111.16 1.14
Ameren AEE 46.08 -0.09 BectonDickinson BDX 134.34 1.46 ChinaMobileADR CHL 52.36 -0.75 EnersisAmericasADR ENI 12.00 -0.05 Markel PetroleoBrasilADRA PBR/A 2.06 -0.12 SnapOn
AmericaMovilADR AMX 13.29 -0.47 BMS 48.53 1.46 ETR 70.74 0.14 Hubbell HUBB 89.96 0.09 Marsh&McLennan MMC 55.28 0.28 PFE 29.10 0.54 SOQUIMICH ADR SQM 15.29 -0.39 UniversalHealthB UHS 105.52 1.05
Bemis ChinaPetroleumADR SNP 52.91 -0.63 Entergy Pfizer
t UnumGroup UNM 26.17 -0.07
AmCampus ACC 43.29 0.32 Berkley WRB 51.39 0.21 ChinaSoAirlinesADR ZNH 25.44 -0.17 EntPdtsPtnr EPD 20.80 -0.53 Humana HUM 159.53 2.57 t MrtnMarMat MLM 128.88 11.03 s PhilipMorrisIntl PM 90.02 0.30 SonyADR SNE 20.75 -0.45
AEP AEP 62.37 -0.12 BerkHathwy A BRK/A 1926351379.96 Equifax EFX 93.22 -0.68 HuntingtonIngalls HII 125.46 0.29 Masco MAS 25.39 1.93 PhilippineLgDisADR PHI 45.16 -0.61 Southern SO 49.20 0.38 VEREIT VER 7.18 -0.19
ChinaTelecomADR CHA 45.01 -0.23
t AmericanExpress AXP 52.63 39.45 0.12 MasterCard MA 81.97 1.32 Phillips66 PSX 75.44 -0.84 SoCopper SCCO 25.38 -0.70 VF VFC 56.66 -0.34
0.23 BerkHathwy B BRK/B 127.72 0.94 ChinaUnicomADR CHU 10.44 -0.14 EquityLife ELS 64.44 0.08 HyattHotels H
AmericanFinancial AFG 66.49 0.39 BestBuy BBY 27.92 -0.70 ChipotleMex CMG 440.93 -4.07 EqResdntl EQR 71.34 -0.89 ICICIBankADR IBN 5.88 -0.02 s McCormick MKC 88.24 0.37 s PiedmontNaturalGas PNY 59.14 -0.04 SowestAir LUV 35.25 0.53 VISAClA V 68.33 0.56
VailResorts MTN 116.39 -0.61
AmericanIntl AIG 52.25 -0.05 BlackKnightFinSvcs BKFS 27.00 -0.69 Chubb CB 110.58 1.69 t EssexProp ESS 193.49 -4.68 IHSClA IHS 95.74 -0.23 McCormickVtg MKC/V 88.00 1.50 PinnacleFoods PF 39.89 -0.19 SpectraEnergy SE 29.15 -0.59
t AmericanTowerREIT AMT 85.57 McDonalds MCD 117.01 0.96 PinnacleWestCap PNW 68.48 -0.01 ValeADR VALE 2.47 -0.05
0.16 BlackRock BLK 294.53 1.07 ChunghwaTelecomADR CHT 31.37 -0.07 EsteeLaudr A EL 90.44 0.81 IMSHealthHoldings IMS 23.30 0.06 SpectraEnergyPtrs SEP 43.71 -2.23
t INGGroepADR ING 10.68 McGrawHillFin MHFI 83.59 0.22 PioneerNaturalRscs PXD 111.29 -3.90 ValeantPharmIntl VRX 86.95 -2.68
AmericanWaterWorks AWK 65.72 1.43 BlackstoneGroup BX 24.46 0.02 Church&Dwight CHD 88.49 1.24 EvrstReGrp RE 187.91 0.56 -0.43 SpectrumBrndsHldgs SPB 95.81 -0.69
t Invesco t McKesson MCK 150.38 -1.08 t PlainsAllAmPipe PAA 15.88 ValeroEnergy VLO 54.82 ...
Amerigas APU 37.13 -0.88 BlockHR HRB 34.18 -0.32 Cigna CI 128.18 3.22 EversourceEnergy ES 54.69 0.60 IVZ 25.65 -0.13 -1.89 SpiritAeroSystemsA SPR 45.25 1.40
t AmerprsFncl AMP 79.17 -1.60 BdwlkPipePtnr BWP 11.21 0.24 CimarexEngy XEC 81.95 -3.46 Exelon EXC 31.94 -0.42 ITCHoldings ITC 38.65 -0.73 MeadJohnNutr MJN 67.92 -0.30 t PlumCrk PCL 36.88 -0.67 SpiritRealtyCap SRC 10.08 -0.21 Valspar VAL 81.13 1.11
AmeriSrcBrg ABC 84.75 1.13 Vantiv VNTV 44.96 -0.71
Boeing BA 118.88 -0.59 t Citigroup C 37.51 -0.30 ExtraSpaceStorage EXR 79.28 0.86 IDEX IEX 71.47 -0.57 Mednax MD 65.98 1.33 PolarisIndustries PII 78.17 -1.04 Sprint S 2.65 0.10
Ametek AME 45.75 1.00 BorgWarner BWA 29.61 0.58 t CitizensFinancial CFG 19.55 0.35 ExxonMobil XOM 80.08 -0.35 IllinoisToolWorks ITW 90.36 0.10 Medtronic MDT 73.08 0.45 PostHoldings POST 62.68 -1.64 StJudeMedical STJ 50.45 0.15 VarianMed VAR 74.87 0.85
AmphenolClA APH 49.04 0.06 BostonProperties BXP 108.97 -2.17 Clorox CLX 128.68 1.64 FMC FMC 34.53 -0.42 InfosysADR INFY 16.34 -0.21 Merck MRK 49.16 0.33 PotashCp POT 15.84 -0.10 StanCorpFinancial SFG 114.83 0.08 Ventas VTR 50.08 -3.63
AnadarkoPetroleum APC 37.24 -2.81 BosSci BSX 16.87 0.80 Coach COH 34.05 -0.38 t FMCTechnologies FTI 22.98 -0.64 Ingersoll-Rand IR 50.15 0.69 t MetLife MET 37.16 0.01 Praxair PX 103.82 1.89 StanleyBlDck SWK 90.63 0.21 Verizon VZ 50.15 -0.59
AngloGoldAshADR AU 10.41 -0.49 BristolMyers BMY 61.02 0.30 t
CocaCola KO 43.30 0.65 FactSetResearchSys FDS 137.59 -2.40 s Ingredion INGR 102.99 0.88 MettlerToledo MTD 307.00 8.86 PrincipalFinancial PFG 35.98 0.20 StarwoodHotels HOT 61.20 1.12 VipshopHldgsADR VIPS 11.40 0.38
AnheuserBuschADR BUD 116.11 MichaelKorsHldgs KORS 50.23 0.03 t VMware VMW 43.84 -0.82
0.92 BrixmorPropertyGrp BRX 22.15 1.05 Coca-ColaFemsaADR KOF 67.70 -0.22 FedRlty FRT 146.77 -0.47 ICE ICE 242.80 3.82 Procter&Gamble PG 82.64 0.02 StarwoodPrTr STWD 17.52 -0.27
AnnalyCap NLY 9.77 -0.06 BdridgeFnlSol BR 52.22 0.27 CocaColaEnt CCE 47.62 0.96 FedEx FDX 129.77 -0.56 InterContinentlADR IHG 32.52 0.24 MidAmApt MAA 85.18 0.54 ProgressiveCorp PGR 30.88 0.15 StateSt STT 53.40 -0.17 VornadoRealtyTrust VNO 80.43 -0.29
t MindrayMedADR MR 27.25 t VoyaFinancial VOYA 26.73 -0.52
AnteroResources AR 26.23 -1.47 BrookfieldMgt BAM 27.56 -0.07 ColgatePalmolive CL 65.88 -0.19 Ferrari RACE 33.96 -1.99 IBM IBM 124.07 -2.91 ... ProgressWasteSol BIN 27.20 0.01 StatoilADR STO 13.45 -0.51
Anthem ANTM 119.82 2.60 BrookfieldInfr BIP 35.49 -0.07 ColumbiaPipeline CPGX 15.93 -0.68 t FiatChryslerAutos FCAU 5.88 -0.20 IntFlavor IFF 116.83 0.22 t MitsubishiUFJADR MTU 4.18 -0.24 Prologis PLD 37.40 -0.25 Steris STE 66.47 1.01 VulcanMaterials VMC 91.01 1.79
Aon AON 92.88 -0.10 Brown&Brown BRO 31.56 -0.18 t Comerica CMA 32.45 0.16 t FibriaCelulose ADR FBR 9.78 0.09 InternationalPaper IP 35.13 0.77 t MizuhoFinancialADR MFG 2.92 -0.07 t PrudentialFin PRU 63.59 0.26 t STMicroelectronics STM 5.35 -0.07 WABCO Hldg WBC 88.82 -0.06
Apache APA 35.58 -2.00 BrownFormanClA BF/A 105.61 2.18 CSC CSC 30.80 0.10 t FidNtlFnl FNF 29.61 0.03 Interpublic IPG 20.50 0.20 MobileTeleSysADR MBT 6.79 -0.16 t PrudentialADR PUK 32.68 -0.80 Stryker SYK 96.64 0.58 WECEnergyGroup WEC 57.39 -0.07
ApartmtInv AIV 35.45 -0.15 BrownFormanClB BF/B 95.86 1.54 ConAgraFoods CAG 39.70 0.57 t FNFVGroup FNFV 8.65 -0.26 IronMountain IRM 26.56 -0.11 t MohawkIndustries MHK 153.70 1.92 PublicServiceEnt PEG 42.38 0.39 t SumitomoMitsADR SMFG 5.26 -0.30 W.P.Carey WPC 55.90 -0.76
ApolloGlobalMgmtA APO 13.17 0.23 BuckeyePartners BPL 51.55 -3.01 ConchoResources CXO 85.58 -1.57 FidelityNtlInfo FIS 57.93 1.89 IsraelChemicals ICL 4.23 0.03 MolsonCoors B TAP 83.87 -0.03 PublicStorage PSA 232.92 3.94 SunLifeFinancial SLF 27.33 -0.29 Wabtec WAB 60.58 -1.37
Aptargroup ATR 74.41 1.38 t Bunge BG 56.75 -1.64 ConocoPhillips COP 33.58 -0.85 58.comADR WUBA 46.84 -1.69 ItauUnibancoADR ITUB 6.07 -0.06 Monsanto MON 91.70 0.45 PulteGroup PHM 16.00 0.21 SuncorEnergy SU 21.57 -0.96 Continued on Page C8
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THE WALL STREET JOURNAL. Wednesday, February 10, 2016 | C5

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
16014.38 t 12.67, or 0.08% Trailing P/E ratio * 16.90 16.84 1852.21 t 1.23, or 0.07% Trailing P/E ratio * 21.40 20.03 4268.76 t 14.99, or 0.35% Trailing P/E ratio * 20.85 22.75
High, low, open and close for each P/E estimate * 15.31 16.64 High, low, open and close for each P/E estimate * 15.87 17.15 High, low, open and close for each P/E estimate * 17.12 18.00
trading day of the past three months. Dividend yield 2.77 2.45 trading day of the past three months. Dividend yield 2.32 1.98 trading day of the past three months. Dividend yield 1.29 1.29
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 5080
65-day moving average
17500 2050 4930

17000 2000 4780

Session high 65-day moving average

DOWN UP 16500 1950 65-day moving average 4630
t

Session open Close

Close Open
t

16000 1900 4480

Session low
15500 1850 4330

Bars measure the point change from session's open

15000 1800 4180
Nov. Dec. Jan. Feb. Nov. Dec. Jan. Feb. Nov. Dec. Jan. Feb.

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* 1,165,981,546 10,162,303
Industrial Average 16136.62 15881.11 16014.38 -12.67 -0.08 18312.39 15666.44 -10.4 -8.1 4.6 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 409,469,911 2,832,846
Transportation Avg 7038.94 6842.86 6996.30 71.99 1.04 9178.48 6625.53 -21.5 -6.8 5.8 Most-active issues in late trading Decl. volume* 750,110,053 7,282,709
Utility Average 628.73 620.17 626.77 3.82 0.61 626.77 541.97 1.0 8.5 9.7 Volume After Hours Issues traded 3,207 365
Company Symbol (000) Last Net chg % chg High Low Advances 965 123
Total Stock Market 19054.27 18721.38 18892.19 -29.83 -0.16 22287.78 18892.19 -12.4 -10.5 6.0
SPDR S&P N Amer Nat Rscs NANR 26,996.4 24.61 -0.03 -0.12 24.61 24.61 Declines 2,191 229
Barron's 400 456.58 447.80 451.88 -1.46 -0.32 586.75 451.88 -17.5 -12.5 4.5
Mkt Vectors Gold Miners GDX 24,979.0 16.78 0.03 0.18 17.70 16.74 Unchanged 51 13
Nasdaq Stock Market Finl Select Sector SPDR XLF 13,934.2 20.37 -0.02 -0.10 20.99 20.29 New highs 69 9
Nasdaq Composite 4329.61 4222.48 4268.76 -14.99 -0.35 5218.86 4268.76 -10.8 -14.8 10.2 Bank Of America BAC 10,480.0 12.19 -0.01 -0.08 13.08 12.12 New lows 483 24
Nasdaq 100 4008.06 3902.74 -12.87 4719.05 3947.80 -14.1 Closing tick 13 14
3947.80 -0.32 -7.8 12.5 Energy Transfer Eqty ETE 9,834.0 4.60 0.03 0.64 4.64 4.05
Closing Arms† 0.85 0.96
SPDR S&P 500 SPY 9,750.1 185.56 0.13 0.07 207.75 183.36
Standard & Poor's Block trades* 6,055 75
Sirius XM Holdings SIRI 5,049.0 3.34 -0.01 -0.30 3.36 3.33
500 Index 1868.25 1834.94 1852.21 -1.23 -0.07 2130.82 1852.21 -10.5 -9.4 6.9 Nasdaq NYSE Arca
iShares MSCI Japan ETF EWJ 4,452.2 10.72 … unch. 10.74 10.69
MidCap 400 1262.55 1241.78 1252.75 -3.59 -0.29 1549.44 1252.75 -15.4 -10.4 4.1 Total volume* 2,410,569,586 507,298,379
SmallCap 600 602.35 592.92 597.03 -2.71 -0.45 742.13 597.03 -13.9 -11.1 5.2 Percentage gainers… Adv. volume* 783,694,968 99,369,971
Decl. volume* 1,589,818,517 318,805,868
Other Indexes 906.3
Fiat Chrysler Automobiles FCAU 6.95 1.07 18.26 6.95 5.89
Issues traded 2,930 1,423
Russell 2000 975.14 957.09 963.90 -5.44 -0.56 1295.80 963.90 -19.9 -15.1 1.8 Akamai Technologies AKAM 1,264.2 45.62 6.05 15.29 46.12 38.02
Advances 986 441
NYSE Composite 9250.65 9109.05 9187.80 -43.53 -0.47 11239.66 9156.84 -15.8 -9.4 0.9 Empire District Electric EDE 9.1 32.37 4.17 14.79 32.37 27.90 Declines 1,852 957
Value Line 393.72 386.36 389.43 -2.81 -0.72 522.42 389.43 -22.7 -12.6 -0.6 Paycom Software PAYC 32.7 25.60 3.10 13.78 25.60 22.50 Unchanged 92 25
NYSE Arca Biotech 2719.52 2575.58 2654.45 7.83 0.30 4431.87 2646.62 -27.0 -30.4 16.2
Marketo Inc. MKTO 25.7 17.25 1.55 9.87 17.95 15.50 New highs 8 44
New lows 450 177
NYSE Arca Pharma 485.19 475.95 481.52 0.65 0.14 605.94 480.87 -12.5 -11.1 6.9 ...And losers
Closing tick 57 43
KBW Bank 60.07 58.42 59.59 0.14 0.24 80.41 59.45 -16.5 -18.5 2.7 SolarCity Corp. SCTY 2,776.3 17.75 -8.60 -32.64 29.94 17.25 Closing Arms† 1.08 1.31
PHLX§ Gold/Silver 57.63 54.08 54.34 -2.43 -4.28 77.12 38.84 -29.3 20.0 -29.1 TransEnterix TRXC 321.5 3.25 -1.15 -26.14 4.75 3.03 Block trades* 8,403 2,622
PHLX§ Oil Service 140.66 130.30 133.30 -8.37 -5.91 224.32 128.61 -33.8 -15.5 -18.8 USANA Health Sciences USNA 10.3 105.00 -14.54 -12.16 121.37 95.00 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 578.66 563.18 567.99 -3.46 -0.60 746.08 559.59 -17.3 -14.4 10.2 Targa Resources Partners NGLS 597.8 10.10 -0.79 -7.25 14.53 10.10 †(TRIN) A comparison of the number of advancing and declining
CBOE Volatility 28.31 25.99 0.54 40.74 11.95 45.7 issues with the volume of shares rising and falling. An
26.54 2.08 54.0 26.8 Sangamo BioSciences SGMO 5.1 5.07 -0.39 -7.14 5.46 4.90 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 2084.63 –18.79 –0.89 –10.8 Belden BDC 45.74 8.59 23.12 95.56 36.51 -46.2 ION Geophysical IO 3.92 -1.93 -32.99 39.60 3.87 -89.7
The Global Dow Euro 1735.61 –41.09 –2.31 –14.3 TransEnterix TRXC 4.40 0.79 21.88 4.87 1.54 45.2 RetailMeNot SALE 5.81 -2.21 -27.56 21.68 5.52 -62.3
DJ Global Index 275.98 –1.97 –0.71 –10.4 Neos Therapeutics NEOS 9.73 1.62 19.98 28.99 7.57 ... American Science Engg ASEI 24.83 -9.33 -27.31 57.70 24.05 -55.3
World DJ Global ex U.S. 187.91 –2.49 –1.31 –10.6 Argos Therapeutics ARGS 4.53 0.71 18.59 9.64 1.61 -44.0 Biostar Pharmaceuticals BSPM 1.62 -0.58 -26.36 12.88 1.53 -79.5
Axsome Therapeutics AXSM 6.30 0.93 17.32 15.74 5.37 ... Qualys Inc. QLYS 17.36 -5.15 -22.88 55.47 16.96 -63.0
Americas DJ Americas 439.17 –0.82 –0.19 –9.9
Closed –6.4 SL Industries SLI 33.37 4.42 15.27 44.00 26.14 -16.5 Unit Corp UNT 7.47 -2.14 -22.27 36.23 5.79 -76.5
Brazil Sao Paulo Bovespa 40592.09 …
–5.6
Glatfelter GLT 17.53 2.30 15.10 27.58 14.09 -28.0 Viacom B VIAB 32.86 -8.99 -21.48 73.52 32.51 -51.8
Canada S&P/TSX Comp 12282.65 –252.75 –2.02
VelocityShares 3x Inv DWTI 355.00 46.56 15.10 484.23 56.32 225.7 Seanergy Maritime Hldgs SHIP 2.41 -0.63 -20.61 7.20 1.10 -36.5
Mexico IPC All-Share 42399.19 –375.66 –0.88 –1.3
Cambrex Corp CBM 37.55 4.85 14.83 55.60 29.50 20.8 Bristow Group BRS 14.75 -3.73 -20.18 64.64 13.24 -74.7
Chile Santiago IPSA 2910.90 –1.78 –0.06 –1.1
Delta Apparel DLA 13.87 1.77 14.63 19.44 8.63 58.0 GigOptix GIG 2.42 -0.59 -19.60 3.42 1.12 103.4
Europe Stoxx Europe 600 309.39 –4.97 –1.58 –15.4
Direxion Natl Gas Bear 3x GASX 58.27 7.37 14.47 158.95 35.40 ... Editas Medicine EDIT 12.81 -3.04 -19.18 19.42 12.75 ...
Euro zone Euro Stoxx 290.52 –4.67 –1.58 –15.8
Silver Spring Networks SSNI 11.12 1.38 14.17 16.18 7.45 31.1 Clayton Williams Energy CWEI 13.74 -3.14 -18.60 73.15 11.23 -78.7
Belgium Bel-20 3168.29 –23.26 –0.73 –14.4
Differential Brands Group DFBG 5.95 0.73 13.98 17.10 2.42 -59.5 Semgroup A SEMG 15.74 -3.55 -18.40 86.99 15.14 -77.5
France CAC 40 3997.54 –68.77 –1.69 –13.8 Direxion Jr Gold Bear 3X JDST 17.77 2.04 12.97 73.00 14.57 -50.0 Viacom A VIA 36.77 -7.94 -17.76 72.72 36.77 -46.1
Germany DAX 8879.40 –99.96 –1.11 –17.3 Energy Transfer Eqty ETE 4.57 0.52 12.84 35.44 4.00 -84.2 NorthStar Realty Finance NRF 8.57 -1.79 -17.28 32.94 8.38 -72.0
Israel Tel Aviv 1417.90 –2.93 –0.21 –7.3
Italy FTSE MIB 15913.12 –528.08 –3.21 –25.7
Netherlands AEX 392.58 –8.03 –2.00 –11.1 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 7927.60 –194.50 –2.39 –16.9 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 438.90 –1.55 –0.35 –13.1
Switzerland Swiss Market 7583.27 –175.94 –2.27 –14.0 VelocityShares 3x Lg UWTI 273,442 333.1 1.42 -16.47 42.80 1.36 JPM Div Return Europe Eq JPEU 359 6600 46.55 -0.58 51.37 46.47
–9.8 Bank Of America BAC 236,717 127.2 12.20 -0.57 18.48 11.96 Restaurant ETF BITE 663 5166 22.77 1.31 26.75 22.43
U.K. FTSE 100 5632.19 –57.17 –1.00
SPDR S&P 500 SPY 174,473 20.4 185.43 0.01 213.78 181.02 SPDR S&P 500 Growth SPYG 691 1889 89.69 0.18 103.97 68.39
Asia-Pacific DJ Asia-Pacific TSM 1246.14 –31.74 –2.48 –10.3 Finl Select Sector SPDR XLF 123,270 129.8 20.39 -0.15 25.62 18.52 iShares 0-5Y Inv Grd Cp SLQD 586 1818 50.17 0.04 51.53 49.97
Australia S&P/ASX 200 4832.10 –143.30 –2.88 –8.8 iPath SP 500 VIX Sht Tm VXX 97,460 28.5 27.88 0.94 34.32 15.48 iSh MSCI Europe Finls EUFN 3,093 1732 16.16 -2.47 24.82 15.93
China Shanghai Composite 2763.49 … Closed –21.9
Mkt Vectors Gold Miners GDX 97,328 68.8 16.75 -4.12 21.56 12.40 WisdomTree Coal Fund TONS 201 1577 29.96 0.37 41.58 29.47
Hong Kong Hang Seng 19288.17 … Closed –12.0
iShares MSCI Japan ETF EWJ 83,837 86.3 10.72 -1.92 13.35 10.63 SPDR Lg Term Corporate LWC 987 1264 37.55 -0.16 42.97 36.77
India S&P BSE Sensex 24020.98 –266.44 –1.10 –8.0
PwrShrs QQQ Tr Series 1 QQQ 72,119 74.5 96.32 -0.31 115.75 84.74 Sunshine Bancorp SBCP 75 1157 14.30 0.63 15.50 11.88
Japan Nikkei Stock Avg 16085.44 –918.86 –5.40 –15.5
Vapor VPCO 65,841 1689.3 0.002 -60.53 7.70 0.00 Hamilton Bancorp HBK 79 1062 14.10 -0.28 16.00 12.65
Singapore Straits Times 2623.21 … Closed –9.0 iShares MSCI Emg Markets EEM 63,153 -6.8 29.19 -1.39 44.19 27.61 Qualys Inc. QLYS 4,217 1049 17.36 -22.88 55.47 16.96
South Korea Kospi 1917.79 … Closed –2.2
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Taiwan Weighted 8063.00 … Closed –3.3 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†: 3.26%
WSJ Dollar
s index Americas Thailand baht .02826 35.390 –1.8
Standard Bank, PaSB 2.25% 4.00 5 Vietnam dong .00004494 22253 0.5
4.00% Murrysville, PA Argentina peso .0696 14.3590 11.0
724-327-0010 3.00 Europe
0 Brazil real .2574 3.8856 –1.9
Hanscom Federal Credit Union 2.38% Canada dollar .7211 1.3869 0.2 Czech Rep. koruna .04179 23.930 –3.8
3.00 One year ago 2.00
t

t
5-year adjustable- Hanscom AFB, MA 800-656-4328 –5 Chile peso .001401 713.80 0.7 Denmark krone .1513 6.6085 –3.8
rate mortgage t s s Colombia peso .0002947 3393.27 6.9 Euro area euro 1.1294 .8855 –3.8
2.00 Pacific Finance Group, LLC 2.38% 1.00 –10 Yen Euro
(ARM) Tuesday Ecuador US dollar 1 1 unch Hungary forint .003619 276.29 –4.9
Bothell, WA 425-354-5602
t 0.00 Mexico peso .0532 18.8009 9.3 Iceland krona .007918 126.30 –3.0
5-year Treasury 1.00 Star One Credit Union 2.50% –15
Peru new sol .2856 3.501 2.5 Norway krone .1165 8.5816 –2.9
note yield 1 3 6 1 2 3 5 710 30 2015 2016
Sunnyvale, CA 408-742-2801 Uruguay peso .03198 31.2700 4.5 Poland zloty .2542 3.9334 0.2
0.00 month(s) years Venezuela b. fuerte .158603 6.3051 unch Russia ruble .01263 79.204 10.2
M AM J J A S ON D J F The MortgageMint 2.63%
maturity Asia-Pacific Sweden krona .1188 8.4166 –0.3
2015 2016 Castle Rock, CO 303-596-7347 Switzerland franc 1.0280 .9728 –2.9
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7070 1.4144 3.1
Turkey lira .3401 2.9407 0.8
China yuan .1521 6.5747 1.3
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0389 25.6975 7.1
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1282 7.7985 0.6
UK pound 1.4471 .6910 1.8
India rupee .01473 67.901 2.6
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 .0000734 13622 –1.5 Middle East/Africa
Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008687 115.12 –4.3 Bahrain dinar 2.6523 .3770 unch
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002813 355.50 4.9 Egypt pound .1277 7.8297 unch
Libor, 3-month 0.62 0.62 0.26 l 0.62 0.33
Macau pataca .1247 8.0195 0.2 Israel shekel .2584 3.8698 –0.6
Money market, annual yield 0.27 0.27 0.24 l 0.42 -0.23 Treasury, Ryan ALM 1466.533 1.409 1.520 1.957 1.401 3.484 3.119
Malaysia ringgit .2397 4.1711 –3.1 Kuwait dinar 3.3363 .2997 –1.2
Five-year CD, annual yield 1.32 1.29 1.29 l 1.53 0.01 10-yr Treasury, Ryan ALM 1774.049 1.728 1.864 2.480 1.728 2.337 3.528 New Zealand dollar .6635 1.5072 3.0 Oman sul rial 2.5943 .3855 0.1
30-year mortgage, fixed† 3.65 3.70 3.65 l 4.22 -0.14 DJ Corporate 343.828 3.352 3.356 3.462 2.641 –0.951 2.417 Pakistan rupee .00955 104.700 –0.2 Qatar rial .2746 3.641 unch
15-year mortgage, fixed† 2.92 2.96 2.92 l 3.42 -0.16 Aggregate, Barclays Capital 1863.720 2.270 2.320 2.630 2.000 1.473 2.320 Philippines peso .0210 47.683 1.8 Saudi Arabia riyal .2666 3.7505 –0.1
Jumbo mortgages, $417,000-plus† 4.29 4.35 4.00 l 4.97 0.09 Singapore dollar .7158 1.3970 –1.5 South Africa rand .0622 16.0696 3.8
High Yield 100, Merrill Lynch 2282.754 8.406 7.867 8.696 5.016 –9.900 –0.236 South Korea won .0008342 1198.80 1.9
Five-year adj mortgage (ARM)† 3.26 3.35 3.14 l 3.99 0.18 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1937.020 2.400 2.450 2.900 2.320 2.482 2.728 Sri Lanka rupee .0069478 143.93 –0.2
New-car loan, 48-month 3.28 3.25 2.71 l 3.33 0.77 Taiwan dollar .03010 33.228 0.9 WSJ Dollar Index 89.28 –0.35–0.39 –0.99
Muni Master, Merrill 507.333 1.489 1.567 2.099 1.489 3.915 3.069
HELOC, $30,000 4.75 5.01 4.24 l 5.01 -0.20
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 n.a. n.a. 6.903 7.128 5.679 n.a. n.a. 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 432.69 -8.17 -1.85 584.70 420.23 -21.35 -4.65

ONLINE
WSJ
Reuters-Jefferies CRB 156.58 -4.00 -2.49 231.77 156.32 -29.99 -11.17
Crude oil, $ per barrel 27.94 -1.75 -5.89 61.43 26.55 -44.14 -24.57
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and
.COM Natural gas, $/MMBtu 2.098 -0.042 -1.96 3.02 1.76 -21.63 -10.23
ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at
Gold, $ per troy oz. 1198.70 0.80 0.07 1231.60 1050.80 -2.67 13.05
WSJMarkets.com
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C6 | Wednesday, February 10, 2016 * *** THE WALL STREET JOURNAL.

THE PROPERTY REPORT

A Lofty Valuation Challenges WeWork
Firm sets its sights been open for at least six
months, occupancy is about
beyond office spaces 98%, said Artie Minson, We-
with nearly $1 billion Work’s president, well above
that of the overall office mar-
in investment funds ket.
“People see the product and
BY ELIOT BROWN it has resonated for them,” Mr.
Minson said. “This business is
Miguel McKelvey, co- a ‘when’ business, not an ‘if’
founder of shared-office-space business.”
giant WeWork Cos., was Fueling this feeling of cer-
speaking before a group of tainty is a belief that genera-
real-estate executives at a tional and cultural shifts are
Napa Valley, Calif., vineyard fueling a desire for more inter-
last fall when he nonchalantly action and communal spaces,
predicted the company would which in turn will lead more
grow to 1,000 locations “in the people to WeWork.
near future.” Adam Neumann, the com-
Apparently surprised by the pany’s 36-year-old chief execu-
1,800% growth this implied, tive, calls it the “We Genera-
the event’s moderator pressed tion,” and he speaks in an
him on the statement, noting infectious manner about how
there were just 52 locations at the company will capture the
the time. market for young, creative
“Yeah—in a few years,” Mr. types living in cities.
McKelvey said before sipping Executives at the company

EMILY ANNE EPSTEIN/CORBIS

from his glass of white wine. speak with an aura of inevita-
WeWork has mushroomed bility about having one million
from a single Manhattan office members, up from about
in 2010 into one of the world’s 45,000 today.
most valuable startups. Mr. Minson declined to
The New York-based com- comment about when he ex-
pany, valued at $10 billion last pected to reach one million
year, has crafted a model for WeWork has grown into one of the world’s most valuable startups. Above, the company’s office space in New York. members, but said, “That is in
what it views as the future of the plan.”
office space: one of glassy is readying a major push into said John Bejjani, a real-estate The markup by Fidelity, been around for a recession. To get there, the company
clusters of offices, hip com- China, India and other Asian analyst at Green Street Advi- which implies a $15 billion val- “The obvious risk and the would likely have to move be-
mon space, beer on tap and a markets. sors. “But their business uation, puts WeWork nearly obvious concern is, in a down- yond the startups and free-
communal atmosphere. And in the U.S., it is diving model isn’t going to pause for on par with the largest pub- turn, you would see some lancers that dominated its
Now, juiced with nearly $1 into cities from Irvine, Calif., a few years waiting for the licly traded U.S. office land- shakeout of your tenants,” early spaces, as the pool of
billion in investment from and Dallas to Detroit, accord- real-estate cycle to turn over.” lord, Boston Properties Inc., said Ian Weissman, an analyst startups is only so deep. It is
companies including Fidelity ing to people familiar with its Aggressive growth is key to which has a market capitaliza- for Credit Suisse Group AG trying to rent out entire floors
Investments and T. Rowe plans—places without the the plan for the co-working gi- tion of less than $17 billion who focuses on real-estate to larger businesses, some of
Price Group Inc., the company same vibrant tech scenes that ant and its investors, who and owns about 10 times more companies. “It is an untested which put tech-oriented work-
is embarking on a growth helped make its early loca- have assigned it a lofty valua- space than WeWork leases. business model to a large de- ers in the space.
spurt as it rapidly expands tions so successful. tion that suggests it soon will The swelling valuation gree.” Much of its success also
around the world—and beyond But the rapid growth comes become the country’s domi- comes despite the fact that WeWork has said its profit will depend on its ability to
mere office space. at the very time when a chill nant host of office space de- earlier iterations of WeWork’s margins of at least 40%, not capture new markets without
Last month, the company has descended over startups spite occupying just five mil- basic business model—signing counting initial construction the same density or public
soft-launched its residential and the broader technology lion square feet across the a long-term lease with a land- costs, are healthy enough to transportation of New York,
arm, WeLive, an upscale dorm- sector, potentially stunting a world today—less than two lord and then filling it with weather a downturn. London and San Francisco.
like service aimed at urban main source of demand and Empire State Buildings. companies paying higher rates WeWork executives say The company already has
20-somethings, and it is in ad- revenue. Meanwhile, office Last week, Fidelity reported on monthly leases—have they are confident in the abil- signed or is negotiating deals
vanced planning for numerous rents—WeWork’s main cost— the value of its WeWork hold- proved highly vulnerable dur- ity to grow rapidly because its in numerous staid-looking of-
other locations around the are at their highest levels ings increased by 53% in the ing economic downturns. new locations fill up quickly, fice buildings in cities includ-
U.S., including Seattle and Jer- since 2008. fourth quarter, and WeWork is The two leading companies and the more locations a city ing Dallas, Nashville, Tenn.,
sey City, N.J. “Expanding aggressively in talks for another round of in the sector tumbled into has, the faster they seem to Pasadena, Calif., Atlanta and
Examining the world’s big- right now—it’s probably a sub- fundraising, according to peo- bankruptcy after the dot-com fill up, not slower. suburban Virginia, say people
gest populations, WeWork also optimal time to be doing so,” ple familiar with the matter. bust, and WeWork hasn’t yet For locations that have familiar with the locations.

Northern Ireland Site Transforms Two Firms Dig Deeper

BY GERRARD COWAN Into the Debt Markets
Ebrington Barracks was a BY PETER GRANT them more willing sellers of
military base for more than their real-estate debt, Kayne
160 years, housing 1,000 Brit- Two well-known managers Anderson executives believe.
ish troops at the height of the of private-equity funds are The new fundraising by Re-
conflict over whether North- pushing further into debt in- lated and Kayne Anderson rep-
ern Ireland should remain part vestments partly in a bid to resents a shift in the role that
of the U.K. or join the Republic take advantage of the opportu- nontraditional lenders are
of Ireland. nities caused by the upheaval playing in the commercial-
If all goes according to in global capital markets. real-estate industry.
plan, the property soon will Related Fund Management, In the early years of the re-
morph into a hub of hotel an arm of Stephen Ross’s Re- covery, this new crop of lend-
space, offices and shops, 18 lated Cos., soon will start ers became an important pro-
years after a historic 1998 raising a closed-end debt fund vider of debt capital to
peace accord eased a period of that could be as large as $2 landlords, replacing traditional
bitter strife known as “the billion, according to people fa- lenders like banks and insur-
Troubles.” miliar with the matter. New ance companies that were
The 26-acre site in Derry, or York-based Related started wary about re-entering a busi-
Londonderry, in the northwest making debt investments fo- ness that had caused them
corner of Northern Ireland is cusing on junior debt two high losses. These nontradi-
one of six former military sites years ago mostly in partner- tional lenders have included
the U.K. government handed ship with Highbridge Principal mortgage REITs such as Star-
over to authorities in North- Strategies, a unit of J.P. Mor- wood Property Trust Inc. and
ern Ireland in 2003 in hopes gan Asset Management. private-equity firms like Col-
of stimulating development. Meanwhile, Kayne Ander- ony Capital LLC and Mesa
The properties are being put son Real Estate Advisors, of West Capital LLC.
REX FEATURES/ASSOCIATED PRESS

to various uses, from offices to Boca Raton, Fla., is looking to

tourism. raise more than $500 million
Global companies have for a new debt fund, people fa-
A Related Cos. unit
shown interest in the city of miliar with the firm say. Like and Kayne Anderson
about 100,000 people. In the Related, Kayne Anderson has
past year, U.S. firms One- been focusing its debt invest-
plan to raise capital
Source Virtual, an outsourc- ments on junior, or mezzanine, for debt funds.
ing provider, and Modsquad, a debt that is more risky but
social-engagement company, pays a higher interest rate
opened European outposts in Ebrington Barracks is one of six former military sites that is being redeveloped in Derry. than senior debt. Lately, banks and insurance
the city. Both funds are hoping to companies have regained their
Northern Ireland’s property chine,” said Mo Durkan, head the First and Deputy First for civilian use. The responsi- capitalize on turmoil in global appetite for real-estate debt.
sector has enjoyed an upswing of marketing and communica- Minister, Northern Ireland’s bility for this work lies with stock and bond markets. For At the end of the third quarter
in recent years. tions at Ilex, an urban regen- most senior politicians, com- the public sector, Mr. Gillespie example, Related executives of last year, banks and thrifts
While the average property eration company that was set missioned an independent re- said, and will depend on the believe that some real-estate had a record of $1.79 trillion
price is still well below the up by the government in 2003 view of the project that was level of interest shown by pri- investment trusts that invest worth of commercial-real-es-
prefinancial-crisis peak, prices to manage the development of published last July. vate companies. in mortgages may be more tate debt on their books and
rose by 4.6% in the year to No- Ebrington and another mili- The report criticized prog- “Ultimately we need the willing to sell this debt be- insurance companies had a re-
vember 2015, according to the tary site. “It had very much ress in a number of areas, in- private sector to come in, but cause their shares on the stock cord $380 billion worth of
most recent report by the the feel of a very closed, cluding a failure to bring in the private sector won’t put in market have fallen so far, ac- commercial-real-estate loans
U.K.’s Office of National Statis- stand-alone community.” significant private-sector in- the infrastructure. If you put cording to people familiar outstanding, according to data
tics. The site currently houses a vestment. the infrastructure in that the with the matter. firm Trepp LLC.
Commercial real estate gen- number of commercial and so- The office announced in Oc- private sector won’t build, the Related’s thinking is that Indeed, fundraising by real-
erated a total return of 10.9 % cial enterprises, including a tober that it would assume di- private sector will come and many REITs would be willing estate debt funds declined to
in 2014, up from 7% in 2013, craft brewery, offices and a rect control of the site at the build their hotels and their sellers because their shares $15 billion by 30 funds in 2015,
according to a separate report cafe, as well as government of- end of March 2016, when Ilex shops and so on,” he said. have fallen far more in value compared with $25 billion by
by Ulster University and MSCI. fices. The army’s old parade will close. The local authority, Still, Mr. Gillespie thinks than the assets they own. As a 37 funds in 2014, according to
But transforming Ebrington ground has been used as an Derry City and Strabane Dis- the slow development of result, these Related execu- data firm Preqin.
could be tricky. Built in 1841, outdoor events space, with trict Council, will take over in Ebrington could be positive in tives believe, the REITs would But traditional lenders have
the property has 14 so-called MTV organizing concerts April 2017. some ways by allowing time be open to selling assets and continued to stay clear of ju-
listed buildings, meaning they there. A foot and cycle More work is needed to for plans to develop and the buying their stock back, pro- nior loans and most construc-
have special architectural or bridge—the Peace Bridge— convert the facilities from mil- private sector to rebound from viding a buying opportunity tion lending. “People are still
historical interest and can’t be opened in 2011, and is now a itary to civilian use, said Ste- the financial crisis. for Related, the people said. pretty leery about going that
touched without permission. landmark in the area. phen Gillespie, director of “Has it taken longer than Kayne Anderson executives far out on the risk curve,” said
The base was designed to Northern Ireland’s environ- business and culture at the expected? Possibly,” he said. see buying opportunities from Matthew Anderson, managing
stand apart from the city for ment minister in early January council. The buildings were “Is it a bad thing? No, because hedge funds and others that director of Trepp.
security purposes, so it was approved a planning applica- handed over as empty shells in you could have rushed in here have been active investors in Also, concern about the ris-
almost a town in itself. tion for work on the site that need of extensive renovation. and done something that stim- mezzanine loans and other ing volume of commercial-
“It had its own cinema, its includes a hotel, restaurants, Ilex had to demolish more ulated a return, but would it forms of high-yield debt, the real-estate lending has been
own nightclub, a hairdresser, a additional office space and than 100 structures on the have been right for the city? I people said. The sharp decline growing at the Federal Re-
supermarket, several bars, a homes. site, Ms. Durkan said. think in these coming years in the junk-bond market is serve, Federal Deposit Insur-
little multidenominational It has taken a lot of work to The roads around the facil- the city is ripe for invest- causing liquidity problems for ance Corp. and Office of the
chapel and its own ATM ma- get to this point. The Office of ity also need to be upgraded ment.” some of these firms, making Comptroller of the Currency.
THE WALL STREET JOURNAL. Wednesday, February 10, 2016 | C7

       

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C8 | Wednesday, February 10, 2016 THE WALL STREET JOURNAL.

THE PROPERTY REPORT BIGGEST 1,000 STOCKS

Continued From Page C4 Net Net
Net Stock Sym Close Chg Stock Sym Close Chg
Stock Sym Close Chg CiscoSystems CSCO 22.65 -0.28 MonsterBeverage MNST 118.91 1.19

Vast Texas Ranch Is Sold WalMart WMT 65.81 -1.09 CitrixSystems CTXS 62.33 -0.84 Mylan MYL 50.74 0.29
WasteConnections WCN 57.48 0.39 t CognizantTechSolns CTSH 52.33 -1.72 t NXP Semi NXPI 65.54 1.54
WasteMgt WM 53.28 0.58 Comcast A CMCSA 58.21 -1.19 Nasdaq NDAQ 61.49 1.28
t Waters WAT 115.83 2.21 t CoStarGroup CSGP 154.01 5.11 NetApp NTAP 22.04 -0.31
WeatherfordIntl WFT 6.34 -0.40 CostcoWholesale COST 147.94 0.92 NeteaseADR NTES 136.40 3.27
WeingartenRealty WRI 34.84 0.39 Ctrip.comIntlADR CTRP 36.57 -0.50 Netflix NFLX 86.13 2.81
t WellsFargo WFC 46.45 -0.05 t DISHNetworkClA DISH 40.68 -1.59 NewsCorpClA NWSA 10.49 -0.07
Los Angeles Rams t Welltower HCN 55.74 -4.84 Dentsply XRAY 56.99
Dexcom DXCM 53.38
-0.21
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NewsCorpClB NWS 11.09 -0.17
t NorthernTrust NTRS 57.99 0.27
WestarEnergy WR 44.99 0.21
owner to buy property WesternGasEquity WGP 21.31 -1.58 DiamondbackEnergy FANG 67.06 -2.89 t NorwegianCruise NCLH 39.18 0.98
WesternUnion WU 17.00 -0.41 DiscoveryCommsB DISCB 24.84 -2.92 NuanceComms NUAN 16.15 -0.23
t DiscoveryCommsA DISCA 24.72 -1.30 NVDA 25.49 0.27
that was listed at a WestlakeChemical WLK 43.50 -0.05
t WestpacBankingADR WBK 20.25 -0.88 DiscoveryCommsC DISCK 24.33 -1.06
NVIDIA
OReillyAuto ORLY 236.29 2.76
DollarTree DLTR 75.24 -0.09 OldDominionFreight ODFL 61.00 1.12
record $725 million WestRock WRK 32.69 0.50
t Weyerhaeuser WY 23.08 -0.32 DunkinBrands DNKN 40.84 -0.70 OpenText OTEX 42.85 -1.02
Whirlpool WHR 137.04 1.80 t E Trade ETFC 20.83 -0.34 Paccar PCAR 49.84 -0.05
WhtMtnIns WTM 710.52-37.85 t EastWestBancorp EWBC 29.15 -0.58 PaneraBreadClA PNRA 184.72 -1.95
BY JOE LIGHT t WhiteWaveFoods WWAV 33.65 0.06 eBay EBAY 22.01 -0.47 Paychex PAYX 46.66 -0.15
Williams WMB 11.98 0.82 ElectroArts EA 58.25 1.93 PayPalHoldings PYPL 32.70 -0.91
t WilliamsPartners WPZ 13.26 -1.13 EndoInternational ENDP 52.22 1.57 People'sUnitedFin PBCT 14.54 0.18
A sprawling, 535,000-acre Equinix EQIX265.05 -3.79 PilgrimPride PPC 22.10 -0.59
WilliamsSonoma WSM 52.11 -0.50
Texas ranch will be sold to bil- WiproADR WIT 11.19 -0.13 t EricssonADR ERIC 8.56 -0.05 Premier PINC 32.43 2.52
WooriBankADR WF 22.29 -0.13 ErieIndemnityClA ERIE 96.57 -0.27 t PricelineGroup PCLN 991.29 17.49
lionaire Los Angeles Rams Expedia EXPE 92.64 1.11 t Qiagen QGEN 20.53 0.04
t Workday WDAY 48.90 -0.07
owner Stan Kroenke in a deal WyndhamWorldwide WYN 63.21 1.58 ExpeditorsIntl EXPD 45.90 -0.15 Qorvo QRVO 35.14 -1.28
t ExpressScriptsHldg ESRX 67.16 0.44 Qualcomm QCOM 43.61 -0.28
approved by a court on Tues- XL Group XL 34.76 0.04
t F5Networks FFIV 87.61 -0.57
XcelEnergy XEL 39.62 0.37 QunarCaymanIslADR QUNR 34.28 -0.47
day. Xerox XRX 8.76 -0.29 FacebookClA FB 99.54 -0.21 s RandgoldRscsADR GOLD 84.05 -1.07
The terms weren’t dis- Xylem Inc. XYL 36.71 0.49 Fastenal FAST 43.36 -0.30 t RegenPharm REGN 365.97-24.56
t FifthThirdBancorp FITB 14.83 0.03 RossStores ROST 54.53 1.20
closed, but the property had YPFADR YPF 15.87 -0.36
YanzhouCoalADR YZC 3.83 -0.06 FirstSolar FSLR 66.48 2.30 RyanairHoldingsADR RYAAY 76.27 2.08
been listed for $725 million. YoukuTudouADR YOKU 27.25 -0.01 Fiserv FISV 92.09 0.28 t SBACommunications SBAC 85.74 -1.11
YumBrands YUM 66.47 -0.96 FlextronInt FLEX 9.94 0.11 SEIInvestments SEIC 34.60 -0.07
A sale price anywhere close Fortinet FTNT 23.84 -0.39 t SS&CTechs SSNC 54.79 0.09
t ZayoGroupHoldings ZAYO 21.89 -0.36
to that figure would far out- ZimmerBiomet ZBH 91.90 -0.13 FrontierComms FTR 4.32 ... t SVBFinancialGroup SIVB 83.99 -0.56
strip any other in dollar value Zoetis ZTS 39.86 -0.33 Garmin GRMN 33.95 -0.40 Sabre SABR 24.91 1.73
GileadSciences GILD 87.25 1.99 SanDisk SNDK 66.54 -1.31
for a U.S. ranch, surpassing NASDAQ Goodyear GT 27.45 1.11 SeagateTechnology STX 29.41 -0.95
Grifols ADR GRFS 14.57 0.13
KRIS HUDSON/WALL STREET JOURNAL

hedge-fund giant Louis Ba- t AMCNetworks A AMCX 63.86 -1.30

t SeattleGenetics SGEN 29.04 -0.31
t HDSupplyHoldings HDS 22.58 0.18 t ShireADR SHPG 151.22 0.82
con’s 2007 purchase of Colo- t Ansys ANSS 83.10 1.18 Hasbro HAS 71.94 -3.17 SignatureBank SBNY 127.82 -1.84
rado’s Trinchera Blanca Ranch ARMHoldingsADR ARMH 41.39 0.99 HenrySchein HSIC 147.62 1.30 SiliconwareADR SPIL 7.45 -0.05
ARRISInternational ARRS 23.10 0.11 Hologic HOLX 32.89 0.14 SiriusXMHoldings SIRI 3.35 -0.01
for $175 million, according to ASMLHolding ASML 84.97 -1.39 JBHunt JBHT 75.12 -0.08 SironaDental SIRO 103.01 -0.45
Eric O’Keefe, editor of indus- t AcadiaHealthcare ACHC 54.93 0.23 HuntingtonBcshs HBAN 8.45 0.04 t SkyworksSolutions SWKS 57.70 -1.34
ActivisionBliz ATVI 28.81 0.09 IdexxLab IDXX 68.49 -1.09 t Splunk SPLK 31.92 ...
try news outlet the Land Re- AdobeSystems ADBE 73.85 -1.09 IPG Photonics IPGP 82.06 0.70 Staples SPLS 8.40 -0.15
port. t AkamaiTechnologies AKAM 39.57 -1.41 t IcahnEnterprises IEP 47.15 -0.92 Starbucks SBUX 54.42 0.28
The deal includes every- AlexionPharm ALXN 136.46 -2.69 Illumina ILMN 139.49 4.12 SteelDynamics STLD 17.34 -0.44
AlignTechnology ALGN 58.66 0.01 Incyte INCY 72.26 1.35 t Stericycle SRCL 106.03 0.04
thing that comes with the t Alkermes ALKS 29.06 -0.39 Intel INTC 28.81 -0.01 Symantec SYMC 18.72 -0.52
property, including 7,500 head t AlnylamPharm ALNY 59.22 -1.39 t InteractiveBrokers IBKR 30.67 0.59 Synopsys SNPS 40.96 -0.36
AlphabetClA GOOGL 701.02 -3.14 Intuit INTU 90.13 -0.79 TDAmeritrade AMTD 26.36 -0.03
of cattle, 500 horses, 30,000 Cowboys separated cows from calves on the Waggoner ranch last October. AlphabetClC GOOG 678.11 -4.63 IntuitiveSurgical ISRG 508.82 1.54 TFSFinancial TFSL 15.60 -0.24
acres of farmland and 1,200 oil Amazon.com AMZN 482.07 -6.03 JD.comADR JD 22.88 -0.33 T-MobileUS TMUS 33.89 -0.07
Amdocs DOX 52.28 -1.59 JackHenry JKHY 76.60 0.03 TRowePrice TROW 66.49 0.52
wells yielding 675,000 barrels activity. Waggoner ranch isn’t nearly as ranches are hard to come by,” t Amerco UHAL 314.97 2.18 t JazzPharma JAZZ 116.70 2.54 t TeslaMotors TSLA148.25 0.26
a year. The Waggoner property, lucrative as the famed King Mr. Leadbetter said. AmericaMovilClAADR AMOV 13.26 -0.44 JetBlue JBLU 20.08 0.74 TexasInstruments TXN 50.68 -0.22
The deal, expected to close roughly 150 miles northwest Ranch, the larger but noncon- Most Waggoner cowboys AmerAirlinesGrp AAL 36.19 0.64 KLA Tencor KLAC 63.96 -0.18 TractorSupply TSCO 81.45 1.63
AmeriCapAg AGNC 17.59 -0.18 KeurigGreenMtn GMCR 89.49 0.37 TrimbleNavigation TRMB 18.82 -0.21
within days, marks the end of of Fort Worth, spans 800 tiguous ranch in South Texas wear spurs, chaps and horse- Amgen AMGN 143.16 0.16 KraftHeinz KHC 71.51 0.29 t TripAdvisor TRIP 54.09 -1.79
a family rivalry that stretches square miles across six Texas known for agribusiness, ranch- shoe mustaches. Smartphones AmTrustFinSvcs AFSI 26.45 -0.22 LKQ LKQ 24.19 -0.73 t 21stCenturyFoxClA FOXA 24.14 -0.45
AnalogDevices ADI 49.31 0.15 LamResearch LRCX 65.58 -0.50 t 21stCenturyFoxClB FOX 24.21 -0.33
back to 1923, when cattle counties. It stretches across ing and hunting. poke out of the breast pockets Apple AAPL 94.99 -0.02 LamarAdvertisingA LAMR 50.13 -1.21 UltaSalon ULTA 151.98 -3.36
baron W.T. Waggoner put the seemingly endless prairie cov- Bernie Uechtritz, one of the of their button-down shirts. AppliedMaterials AMAT 16.10 -0.09 LibertyBroadbandA LBRDA 45.86 0.36 t UltimateSoftware ULTI153.04 -3.08
ArchCapitalGroup ACGL 67.87 0.23 t LibertyBroadbandC LBRDK 45.15 -0.03
ranch into a trust to protect ered in water-guzzling mes- brokers for the sellers, said “The cowboy way is dying AthenaHealth ATHN 118.31 -0.32 LibertyGlobalClA LBTYA 31.19 -0.88
t UnitedTherapeutics UTHR 119.32 3.57
VeriSign VRSN 72.62 0.85
the family’s assets from his quite, four man-made lakes that they fielded more than out, and I’d like to see it stay t Autodesk ADSK 42.64 -0.81 t LibertyGlobalClB LBTYB 31.34 -3.75 VeriskAnalytics VRSK 67.77 1.82
three children’s allegedly and pastures dotted with cows 900 inquiries from potential for a while,” said Weldon Haw- ADP ADP 80.67 -0.58 LibertyGlobalClC LBTYK 30.47 -0.77 t VertxPharm VRTX 80.14 -1.86
B/EAerospace BEAV 41.11 -0.96 LibertyGlbLiLACAWi LILA 32.50 -1.25 t Viacom A VIA 36.77 -7.94
spendthrift ways. and oil pumps. buyers, narrowing the list to a ley, the 64-year-old ranch BaiduADR BIDU 140.68 -4.37 LibertyGlbLiLACClC LILAK 34.29 -1.67 t Viacom B VIAB 32.86 -8.99
By the 2000s it escalated The property can hold up to half-dozen finalists. manager who first worked on BedBath BBBY 43.67 -0.07 t LibertyInteractQVC QVCA 22.68 -0.43
t Biogen VimpelComADR VIP 3.28 -0.16
BIIB 249.99 -0.78 t LibertyVenturesA LVNTA 33.16 0.07
into a court dispute between 16,000 head of cattle. Deer, Mr. Kroenke last month the Waggoner property in t BioMarinPharm BMRN 65.11 VodafoneGroupADR VOD 29.24 0.05
0.37 LibertyMediaA LMCA 32.15 0.05 WPPADR WPPGY 100.37 2.85
various heirs about how to liq- turkey and feral pigs scamper won approval to move the 1970 and still rides herd on BlackBerry BBRY 6.72 -0.08 LibertyMediaC LMCK 31.71 0.02 WalgreensBootsAll WBA 74.93 2.02
Broadcom AVGO 119.71 -2.15 LinearTechnology LLTC 40.91 0.04
uidate the estate. In August freely across its pastures, with Rams to Los Angeles from St. cattle there. CA CA 27.57 0.12 LinnEnergy LINE 0.39 0.06
t WesternDigital WDC 40.18 -1.73
WholeFoods WFM 29.06 -0.32
2014, a state judge in Vernon, no commercial hunting al- Louis. He already owns ranch “It’s been an awful good life CBOE Holdings CBOE 61.79 1.92 lululemonathletica LULU 56.88 -1.08 WillisTowersWatson WLTW 110.65 -0.51
Texas, granted court-ap- lowed on the property. property in British Columbia, for some of us.,” Mr. Hawley CDKGlobal CDK 41.92 -1.70 Markit MRKT 27.13 -0.35
t CDW WynnResorts WYNN 58.45 -0.35
CDW 35.41 0.10 MarriottInt A MAR 60.77 1.33
pointed receiver Michael Bask- The ranch’s owners and Arizona, Montana and Wyo- said. “It’s an extremely good Xilinx XLNX 47.22 -0.16
CH Robinson CHRW 69.69 0.17 MarvellTch MRVL 8.70 -0.15 Yahoo YHOO 26.82 -0.23
erville permission to put the promoters herald it as the ming, said Joel Leadbetter, a place to raise your children. A CMEGroupClA CME 93.31 3.12 Mattel MAT 31.17 -0.79 Yandex YNDX 12.50 -0.27
CSX CSX 23.88 0.87 MaximIntProducts MXIM 31.12 0.38 t ZionsBancorp ZION 20.77 0.05
ranch up for sale. largest contiguous U.S. ranch broker who represented Mr. lot of us have worked here for CadenceDesign CDNS 19.82 0.22 t Medivation MDVN 28.17 0.85 t Zynga ZNGA 2.03 -0.06
Mr. Baskerville said a judge that is surrounded by a single Kroenke. many years, many generations. CaseysGenStores CASY 112.32 0.08 t MelcoCrownEntADR MPEL 12.32 -0.40
Celgene CELG 100.50 1.32 MichaelsCos. MIK 20.93 -0.11
signed off on the agreement fence. “Stan will be the second “It’s not really a job,” he Cerner CERN 53.71 -0.58 MicrochipTech MCHP 41.26 0.04
NYSE MKT
Tuesday and that Mr. Kroenke Yet with roughly $40 mil- owner in history. This ranch is added. “It’s a way of life.” CharterComms CHTR165.04 2.45 MicronTechnology MU 9.98 -0.19 BritishAmTobADR BTI 108.93 0.43
plans to continue operating lion to $50 million in annual very historic in Texas and in —Kris Hudson CheckPointSoftware CHKP 76.69 -0.22 Microsoft MSFT 49.28 -0.13 CheniereEnergy LNG 24.46 0.81
CincinnatiFin CINF 61.24 0.31 t Middleby MIDD 83.34 1.83 CheniereEngyPtnr CQP 21.18 -0.22
the ranch and possibly step up revenue and a staff of 120, the the whole United States. Those contributed to this article. Cintas CTAS 83.49 0.85 MondelezIntlClA MDLZ 37.05 0.71 ImpOil IMO 30.58 -0.66

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THE WALL STREET JOURNAL. Wednesday, February 10, 2016 | C9

NEW HIGHS AND LOWS

WSJ.com/newhighs

The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk %
Market stocks that hit a new 52-week intraday high or low in the latest session. Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
% CHG-Daily percentage change from the previous trading session.
CalAtlanticGroup CAA 27.92 ... EnLinkMidstream ENLK 8.26 -4.1 Imax IMAX 25.77 -1.6 Metlife pfA METpA 22.76 -0.1 PhoenixNewMediaADR FENG 3.38 -4.4 SunTrustBanks STI 31.82 1.7
Tuesday, February 9, 2016 CaliforniaRscs CRC 0.80 -7.4 EnvisionHealthcare EVHC 18.31 0.1 Imperva IMPV 32.83 -5.5 MitsubishiUFJADR MTU 4.14 -5.4 PlainsAllAmPipe PAA 14.82 -10.6 SynchronyFinancial SYF 24.08 2.5
52-Wk % 52-Wk % 52-Wk % CapSrLvng CSU 15.17 -7.1 EssexProp ESS 191.66 -2.4 IntlGameTech IGT 12.77 -1.2 MiXTelematicsADR MIXT 3.56 -2.7 PlainsGPHldgsClA PAGP 4.72 -16.5 SynovusFinancial SNV 26.24 ...
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg CapsteadMrtgPfdE CMOpE 22.20 -2.7 EveriHoldings EVRI 2.32 -11.4 IntraLinksHldgs IL 6.57 -5.2 MizuhoFinancialADR MFG 2.88 -2.3 PlumCrk PCL 36.17 -1.8 TCFFinancial TCB 10.65 0.8
NuvMuniAdv NMA 14.26 0.6 ArdmoreShipping ASC 7.15 -3.8 CareCapProperties CCP 25.02 -8.6 Evertec EVTC 11.71 -4.5 InvescoMortgagePfd IVRpA 19.00 -3.3 Mobileye MBLY 23.57 1.6 PowerSecureInt POWR 9.53 -0.9 TCFFinancialWt TCB/WS 1.35 -10.0
NYSE highs - 69 NuvMuniMkt NMO 14.18 0.3 AresCommrclRealEst ACRE 8.93 -1.7 Carnival CCL 40.52 2.5 EvolentHealthClA EVH 8.78 -6.1 InvescoMrtg IVR 10.20 -3.7 ModelN MODN 9.19 -5.3 PrivateBancpDeb42 PVTD 25.56 -2.8 TEConnectivity TEL 51.70 -0.2
AGLResources GAS 64.99 0.2 NuveenMuniOppFd NIO 14.80 -0.5 AristaNetworks ANET 52.51 -1.8 Carnival ADR CUK 42.45 2.0 ExtendedStayAmer STAY 11.31 -5.7 InvRlEst IRET 6.10 -1.9 MohawkIndustries MHK 148.56 1.3 PrudentialFin PRU 61.38 0.4 TEGNA TGNA 21.13 -2.5
AlliantEnergy LNT 68.66 0.6 NuvNY TxF NXN 14.39 0.4 ArtisanPtrsAsset APAM 26.86 0.1 CastlightHealthB CSLT 2.82 -7.7 FMCTechnologies FTI 22.52 -2.7 iStarPfdD STARpD 18.50 -3.8 MolinaHealthcare MOH 48.00 0.7 PrudentialADR PUK 32.20 -2.4 THLCreditNts123022 TCRZ 24.01 -2.5
AtmosEnergy ATO 70.98 1.4 NuvPP NPP 15.50 0.1 AspenAerogels ASPN 3.81 -0.7 Catalent CTLT 20.50 -1.1 FactSetResearchSys FDS 137.08 -1.7 iStarPfdF STARpF 17.98 -4.3 MonogramResident MORE 7.72 -2.4 Prdntial Skis PUKp 25.25 ... TRIPointeGroup TPH 8.83 1.0
BB&TPfd.F BBTpF 25.45 0.8 NuvQltyInco NQU 14.63 0.5 AspenInsHldg pfA AHLpA 23.01 -0.2 CenovusEnergy CVE 10.62 -5.3 Ferrari RACE 33.60 -5.5 iStarPfdG STARpG 17.05 -3.4 Moodys MCO 78.01 0.8 PumaBiotechnology PBYI 34.71 -3.6 TableauSoftware DATA 36.60 5.4
BlackHillsUn BKHU 59.78 0.7 NuveenQualMuniFd NQI 14.06 ... AspenInsPerpPfd AHLpB 25.60 -1.2 Centene CNC 47.36 3.3 FiatChryslerAutos FCAU 5.78 -3.3 JMPGrpNt2023 JMPB 20.79 -1.3 MorganStanleyPfd1 MSpI 24.34 -1.2 PutnmMstIntm PIM 4.11 -0.7 TallgrassEnGPClA TEGP 10.13 -8.0
BlackRockIncmTr BKT 6.57 1.2 NuvTX Qual NTX 14.67 0.1 AssdBanc-Corp8.00% ASBpB 25.70 -1.2 ChespkeEngy pfD CHKpD 5.02 -24.2 FiatChrysler7.875 FCAM 56.47 -2.3 JapanSmlCap JOF 8.88 -0.8 MorganStanley MS 21.76 1.1 Q2Holdings QTWO 16.43 3.7 TallgrassEnPtrs TEP 28.96 -7.0
BlackrockTerm BTT 22.49 0.4 NuvVA Prm NPV 14.59 0.6 AssuredGuaranty AGO 22.22 -1.0 ChinaFund CHN 12.71 -0.9 FibriaCelulose ADR FBR 9.66 0.9 JonesEnergyClA JONE 1.42 -13.3 MS CapTr V MWO 24.56 -0.8 QuanexBldg NX 16.14 1.6 TeamHealthHolding TMH 33.15 -2.2
BlkRkMuniHldgFd II MUH 16.05 0.6 ONEGas OGS 58.77 0.6 AssurGrMunHldg nt AGOpE 22.80 -0.5 ChinaLifeInsADR LFC 10.55 -0.7 FNFVGroup FNFV 8.57 -2.9 JonesLangLaSalle JLL 102.34 0.7 MS CapTr IV MWG 24.98 -0.8 QuestDiag DGX 59.66 ... TeekayTankers TNK 3.75 -2.8
BlkRkMuniHldg MFL 15.04 0.1 PNMResources PNM 32.51 0.2 AutohomeADR ATHM 21.53 ... CIBER CBR 2.72 -1.1 FidNtlFnl FNF 29.20 0.1 JPMChinaRegion JFC 12.25 -0.9 MS CapTr III MWR 24.95 -0.9 QuintilesTransnat Q 55.01 1.4 TeklaHealthcare HQH 21.08 -1.1
BlRkMuHldgNYQlty MHN 15.04 0.7 PhilipMorrisIntl PM 90.56 0.3 Autoliv ALV 95.34 1.3 CinemarkHoldings CNK 26.56 0.4 FirstHorizonNatl FHN 11.67 1.2 JumeiIntlADR JMEI 5.03 -1.0 MS ChinaShrFd CAF 14.44 -2.1 Qwest7%Notes2052 CTX 24.88 -0.9 TeklaLifeSciences HQL 15.83 -1.4
BlRkMunHldQltyII MUE 13.97 0.1 PiedmontNaturalGas PNY 59.37 -0.1 AvenueIncmCrStrat ACP 9.62 -0.8 Citigroup C 36.68 -0.8 FirstPotcRltyTrPfA FPOpA 24.65 ... KBR KBR 12.00 0.2 MSCapTrPfdSec MSK 24.95 -0.9 QwestNts2054 CTV 24.64 -0.8 TeklaWorldHlthcrFd THW 12.53 -0.7
BlRkMuniHldgQlty MUS 14.70 1.5 PutnmMunOpp PMO 12.60 -0.2 Aviva ADR AV 11.63 -1.5 CitigroupPfdK CpK 23.11 -0.3 FTDynamicEurope FDEU 14.26 -2.9 KennedyWilson KW 16.10 -2.4 MorganStanDepPfdF MSpF 25.55 -0.6 Qwest7%Nts2056 CTAA 24.55 -0.6 Teladoc TDOC 11.84 -6.5
BlkRkMuniyldNJ Fd MYJ 16.32 -0.1 TysonFoodsUn TSNU 67.96 1.1 AxaltaCoatingSys AXTA 20.67 3.4 CitigrpPfdJFixFltg CpJ 25.84 -1.4 FTInterDurationPfd FPF 20.51 -2.3 KenonHoldings KEN 8.25 -2.6 MorganStanleyPfdG MSpG 25.63 -1.9 RE/MAXHoldingsClA RMAX 30.25 -0.5 TelephonedataPfd TDJ 24.10 -1.6
BlkRkMuniyldQltyII MQT 13.90 0.7 TysonFoodsClA TSN 61.00 1.1 AxovantSciences AXON 8.86 5.9 CitigroupPfdL CpL 25.51 -2.0 Fitbit FIT 13.99 -0.6 KeysightTechs KEYS 21.17 -0.9 NCIBuildingSystems NCS 9.07 0.3 RPM RPM 37.24 0.8 TempltnDrgn TDF 14.88 -3.1
BlRkMuyldLQlty MFT 14.50 -1.0 WestAssetMuniTr MTT 25.23 -3.3 BAC CapTr VIII BACpZ 25.00 -1.0 CitigroupDep.Pfd.S CpS 24.10 -0.5 FiveStarQuality FVE 2.06 -8.7 KilroyRealty KRC 47.65 -3.9 NGLEnergyPartners NGL 7.42 -9.8 RackspaceHosting RAX 16.65 -9.1 TesoroLogistics TLLP 37.23 -4.1
BlueCapReins BCRH 18.84 2.6 WstAstMuniHiInco MHF 8.02 -0.2 BBXCapitalClA BBX 12.65 -2.9 CitigrpCapXIIIPf CpN 24.80 -0.4 ForestCityRealtyB FCE/B 16.59 -2.6 KyoceraADR KYO 38.01 -1.3 NtlWstmin pfC NWpC 24.44 -0.5 RalphLaurenA RL 82.79 -1.8 Textura TXTR 13.13 -2.1
CampbellSoup CPB 57.33 1.7 WstAstMuniPtnr MNP 16.46 0.2 BGCPtrsNts BGCA 25.20 0.4 CitigpFndPfdAA CpP 26.42 -0.4 ForestCityRealtyA FCE/A 16.43 -3.0 Lazard LAZ 30.31 -3.8 NationstarMortgage NSM 8.52 -4.2 RBSCapFd6.25% RBSpI 22.01 0.4 ThirdPointReins TPRE 10.57 -3.1
ChespkeUtil CPK 67.36 0.8 BancofCASr.Nts BOCA 25.06 -0.2 CitizensFinancial CFG 18.89 1.8 Furmanite FRM 4.70 -3.7 LeggMason LM 25.00 -2.0 NaturalGasSvcs NGS 16.42 -6.4 RBSCapFdTr5.9% RBSpE 21.58 0.6 TierReit TIER 12.52 -4.1
ConEd ED 73.90 0.7 NYSE lows - 483 BancofCAPfdE BANCpE 23.99 -1.4 ClearChannelOutdr CCO 3.56 -6.1 GMACCapTrSer2 ALLYpA 24.56 -2.3 LendingClub LC 6.34 -0.6 NaviosMaritime NNA 1.89 -4.5 RealogyHoldings RLGY 28.59 -1.8 TimeWarner TWX 62.82 -6.1
DreyfStMnBd DSM 8.51 0.4 AECOM ACM 22.98 -2.4 BankofAmericaBWt BAC/WS/B 0.15 -0.1 CobaltIntlEnergy CIE 2.63 -6.3 GPStrategies GPX 21.88 -1.1 LennarClB LEN/B 30.73 -0.5 NaviosMaritime NMM 1.00 -10.3 RegalBeloit RBC 49.27 -7.9 Toll Bros TOL 24.44 -0.3
DreyfStrMuni LEO 8.90 -0.1 AVGTechnologies AVG 16.22 -3.1 BA DepShs I BMLpG 17.03 -1.5 Comerica CMA 31.45 0.5 GencoShipping GNK 0.58 -19.2 LennarClA LEN 37.76 -0.1 NetSuite N 52.94 -0.9 RestaurantBrands QSR 29.37 -1.6 TortPwEnInfrFd TPZ 12.86 -5.1
EatonVanceMunInc28 ETX 19.57 1.0 AXISCapHldgsPfdC AXSpC 24.68 -0.5 BA DepShs II BMLpH 17.10 -1.9 ComericaWt CMA/WS 7.82 4.9 Gener8Maritime GNRT 5.23 -9.0 LeucadiaNational LUK 14.83 -3.2 NewGermanyFund GF 12.02 -2.5 RestorationHardwr RH 49.68 -0.8 TransdigmGrp TDG 180.76 -12.7
EatonVanceMuniTr EOT 22.02 -0.5 AegonADR AEG 4.79 -7.6 BankAm BAC 11.96 -0.6 CompassMnlInt CMP 69.34 0.6 GenlCbl BGC 9.51 -1.6 LexmarkInt LXK 25.25 -3.9 NewHome NWHM 7.65 -2.0 RivernorthOppsFund RIV 15.55 0.3 Transocean RIG 8.38 -6.7
GabelliMultimedia GGTpB 27.47 4.2 AegonCapSec AEH AEH 24.26 -2.9 BankNY Mellon BK 32.42 0.9 Cntrywd Trups CFCpA 24.96 ... GenesisEgy GEL 21.09 -6.9 LibertyAllStar USA 4.32 -1.4 NewIrelandFd IRL 11.77 -3.4 RobHalfIntl RHI 38.15 -1.9 TravelportWorldwd TVPT 8.50 -2.3
GenAmInv pfB GAMpB 27.38 -0.9 AegonCapSec AED AED 24.40 -1.9 BarclaysBankADRPfd BCSp 23.11 -2.5 CntrwdCapV CFCpB 24.86 0.1 GenesisHealthcare GEN 1.44 -7.5 LibertyASGFd ASG 3.45 -1.9 NewRelic NEWR 20.39 -4.1 RoseRockMidstream RRMS 7.26 -14.1 TrecoraResources TREC 9.09 -5.7
HormelFoods HRL 83.08 1.8 AegonCapSec AEB AEB 21.22 -2.6 BarclaysBkPfd4 BCSpC 24.00 -0.4 CousinsProperties CUZ 7.97 1.0 GenworthFinClA GNW 1.63 -10.2 LightInTheBoxADR LITB 2.00 2.5 Newell NWL 33.43 ... RylBkScot pfS RBSpS 21.87 0.4 TremorVideo TRMR 1.69 -0.6
IDACORP IDA 70.54 1.1 AEGONNotes AEK 25.60 -1.6 BarclaysBkPfdA BCSpA 23.42 -2.6 Crawfrd B CRD/B 3.99 -0.2 GoldmanSachsPfdJ GSpJ 23.35 -1.5 LincolnNationalWt LNC/WS 26.35 -1.1 NewMarket NEU 323.94 -3.0 RoyalBkScotlandADR RBS 6.42 -1.7 TriangleNts031522 TCCB 24.51 -1.8
Ingredion INGR 103.44 0.9 AerCapHoldings AER 24.61 4.9 BarclaysBkADRPfd5 BCSpD 24.52 -0.5 CreditSuisseADR CS 13.25 -6.7 GoldmanSachsGpPfdK GSpK 25.11 -1.3 LincolnNational LNC 32.47 1.2 Nidec ADR NJ 15.54 -2.2 RylBkScot pfF RBSpF 23.45 -0.1 TribuneMediaClA TRCO 27.15 -6.2
Invesco MIO OIA 7.62 ... Aetna AET 92.42 3.1 BarclaysADR BCS 8.98 -4.0 CrestwoodEquity CEQP 9.03 -13.8 GoldmanSachs GS 145.10 -0.7 LinkedInA LNKD 100.12 -8.2 NimbleStorage NMBL 5.75 -5.0 RylBkScot pfL RBSpL 21.42 -0.7 TribunePublishing TPUB 6.18 -15.0
InvescoQtyInc IQI 13.09 0.5 AffiliatedManagers AMG 117.10 -0.3 BioAmber BIOA 2.87 -7.8 Cubic CUB 30.11 -1.1 Greatbatch GB 33.56 -3.0 LiveNationEnt LYV 18.77 -0.2 NomadFoods NOMD 6.40 -10.5 RylBkScot pfR RBSpR 21.20 -0.1 TriNetGroup TNET 12.41 ...
InvescoInvNYMuni VTN 15.62 0.6 Agrium AGU 79.94 -0.4 BitautoHldgsADR BITA 16.44 -4.9 Cvent CVT 19.25 -4.8 Griffon GFF 13.45 0.4 LloydsBankingADR LYG 3.33 -1.4 NomuraHoldingsADR NMR 4.32 -2.6 RubiconProject RUBI 11.97 -2.5 Twitter TWTR 14.31 -3.4
InvescoValueMuniIT IIM 17.25 1.1 AirLease AL 22.69 -0.6 BlackStoneMinerals BSM 11.18 -2.6 DarlingIngredients DAR 8.07 -2.5 GrupoTelevisaADR TV 23.29 -2.4 LouisianaPacific LPX 13.85 -3.3 NorthStarAssetMgmt NSAM 9.20 -8.0 RuckusWireless RKUS 7.42 -2.9 UBSGroup UBS 14.01 -3.9
KimberlyClark KMB 131.59 1.1 Aircastle AYR 15.06 0.9 BlkRkGlOpEqTr BOE 10.58 -2.6 DaVitaHlthcrPtrs DVA 61.75 ... HCP HCP 27.36 -16.7 LuxferHoldingsADR LXFR 9.17 -2.0 NorthstarRealtyPfC NRFpC 15.75 -12.5 SCETrIIIPfd SCEpH 25.07 -2.3 USBncpDepPfdG USBpN 25.82 -0.6
LacledeGroup LG 66.10 0.9 AlexREEq ARE 72.07 -3.4 BlkRkHlthSci BME 31.10 -2.5 DelphiAutomotive DLPH 55.59 1.1 HFF A HF 22.54 -3.2 MDC Hldgs MDC 19.53 -2.3 NorthstarRealtyPfC NRFpD 15.11 -10.7 SLGreenRealty SLG 80.30 -3.2 USBncpPfdA USBpA 758.00 -2.1
MFS HiIncoMuni CXE 5.12 -0.4 AllianceData ADS 176.63 -3.6 BrandywineRealty BDN 11.52 -1.9 Demandware DWRE 30.18 -3.5 HP HPQ 9.15 -1.9 MGMResortsIntl MGM 16.18 -1.8 NorthstarRltyPfdE NRFpE 15.50 -12.8 STAGIndustrial STAG 15.17 -3.2 USBncpDepPfdPerpF USBpM 27.48 -0.7
MFS HiYldMuni CMU 4.80 -0.2 AllncBrnstnHldg AB 16.50 2.8 Bristow BRS 13.24 -20.2 DtscheBkTrII DXB 18.64 -2.0 HRGGroup HRG 10.56 -2.1 MI Homes MHO 15.76 -0.4 NorthStarRealty NRF 8.38 -17.3 SanofiADR SNY 38.33 -0.9
UBS TrIV Trups UBSpD 15.09 -1.9
MainStayMuniFd MMD 19.43 0.8 AllisonTransmissn ALSN 20.56 -2.4 BrookdaleSrLiving BKD 11.28 -16.6 DeutscheBank DB 14.78 -1.0 HSBC Fin pfB HSFCpB 24.31 -2.2 MPLX MPLX 16.93 -2.2 NostrRltyFin pfA NRFpA 15.75 -13.8 SantdrFinPfdS6 SANpB 17.17 -3.6
UnitedRentals URI 43.61 -3.9
McCormick MKC 88.84 0.4 AllyFinFxdRtePfA ALLYpB 24.35 -2.2 Bunge BG 56.33 -2.8 DeutscBkTruPS DTK 20.70 -2.3 HSBCHldgPfd HSEA 25.27 -1.1 MSGNetworksClA MSGN 15.92 -3.0 NostrRltyFin pfB NRFpB 15.00 -13.8 SantanderCnsmrUSA SC 9.04 1.3
UnumGroup UNM 25.32 -0.3
McEwenMining MUX 1.61 -1.9 Ameresco AMRC 4.54 -2.1 CAIInternational CAI 5.26 3.4 DiscoverFinPfd.B DFSpB 24.71 -0.4 HSBCHoldingsADR HSBC 31.05 -0.8 MacquarieInfr MIC 53.99 -5.3 Novartis ADR NVS 71.90 -0.8 SchwabC SCHW 22.85 -1.1
Valhi VHI 0.85 -3.0
NtlRetailProp NNN 44.79 1.8 AmericanAssets AAT 34.51 -3.0 CBL&AssociatesPfE CBLpE 20.36 -1.9 Disney DIS 89.04 0.2 HSB HldgsPfdSer2 HSEB 25.16 -1.0 MadisonSquGarden MSG 139.10 3.5 NuvShrtDurCrOppFd JSD 13.74 -0.9 ScorpioBulkers SALT 1.99 -15.7
Vectrus VEC 17.39 -1.7
NextEraEnergy NEE 115.95 1.0 AmEqtyLf AEL 13.73 -4.7 CBL Assoc CBL 9.71 -3.4 DorianLPG LPG 9.05 -1.5 HSBC ADR PfA HSBCpA 23.80 -2.5 MagnaInt MGA 30.41 -0.3 OceaneeringIntl OII 27.95 -2.5 ScorpioTankers STNG 5.05 -3.7
VeriFoneSystems PAY 20.53 -4.7
NiaMoPwr pfC NMKpC 99.75 0.5 AmericanExpress AXP 51.91 0.4 CBL Assoc pfD CBLpD 21.87 -2.8 DouglasEmmett DEI 26.40 -2.7 HSBC pfH HUSIpH 24.48 -1.6 MaidenHldgsNts2043 MHNC 25.54 -2.3 OilStatesInt OIS 22.42 -6.1 SelectMedical SEM 7.65 -2.3
VMware VMW 43.55 -1.8
NowestNG NWN 53.39 0.6 AmerHomes4RentClA AMH 13.49 -3.6 CDI CDI 4.50 -3.0 DoverMotorsports DVD 1.97 -2.0 HatterasFinPfd.A HTSpA 19.22 -3.9 MaidenHldgsPfdC MHpC 23.36 -1.3 Olin OLN 12.29 -0.2 SelectiveInsNts SGZA 24.02 -2.1
VornadoRltyTrPfJ VNOpJ 25.16 -0.5
Northwestern NWE 58.65 0.2 AmerTowerDepPfdCvB AMTpB 90.39 -0.7 CEB CEB 50.91 -0.8 DrilQuip DRQ 50.17 -2.9 HealthSouthWt HLS/WS 1.30 -18.8 MaidenHldgsNts MHNB 24.91 -0.3 OmegaHealthcare OHI 26.96 -8.4 SensataTech ST 30.94 -2.6
VoyaFinancial VOYA 26.12 -1.9
NuveenCalAMT NKX 15.90 1.1 AmericanTowerREIT AMT 83.91 0.2 CGG ADR CGG 0.59 -15.3 DunBradst DNB 85.99 0.9 HerculesTechNts24 HTGX 24.55 -1.0 ManchesterUnited MANU 13.60 -2.2 OneMainHoldings OMF 20.03 -2.6 SeventySevenEnergy SSE 0.26 -0.1
E 26.02 -3.5 HertzGlobal HTZ 7.17 -1.5 Manning&Napier MN 6.34 -7.0 OPWR 7.62 1.9 Shutterstock SSTK 25.71 -6.7
VoyaPrimeRateTrust PPR 4.61 ...
NuvCA NAC 16.05 0.1 AmerprsFncl AMP 78.80 -2.0 CNAFinancial CNA 30.03 -1.4 ENIADR Opower
WCICommunities WCIC 17.27 2.5
NuvCA Val NCA 11.10 0.5 AnthemInc.CorpUn ANTX 40.72 1.6 CNO FincGp CNO 15.33 -3.6 EaglePointCredit ECC 13.61 -3.0 HondaMotorADR HMC 25.10 -2.1 MarathonOil MRO 7.03 -6.8 OutfrontMedia OUT 18.69 -4.8 SignetJewelers SIG 94.01 -4.1
49.88 -1.6 WPGLIMCHER WPG 7.67 -2.4
NuvDivAdv NAD 14.80 0.5 ArcelorMittalADR MT 3.16 -8.2 CONEMidstreamPtrs CNNX 7.77 -4.7 EastGroup EGP HoraceMn HMN 28.35 -1.4 MarathonPetroleum MPC 29.24 2.2 PHH PHH 10.65 -5.7 SilverBayRealtyTr SBY 12.40 -4.2
12.98 0.1 DR Horton DHI 22.97 2.4 Marcus&Millichap MMI 19.79 -4.4 PNC FnlSvcs PNC 80.28 0.5 Waddell&ReedFin WDR 20.21 1.3
NuvMI Qual NUM 14.10 0.3 ArchCapitalPfdC ARHpC 25.14 -1.0 CRHADR CRH 23.33 0.7 EatonVanceFRIncPls EFF Smith&NephewADR SNN 30.23 1.0
WalterInvMgmt WAC 7.99 -10.4
NuveenMNMuniIncm NMS 15.70 2.6 ArcosDoradosHldgsA ARCO 2.38 ... CVREnergy CVI 27.36 -3.0 EtnVncSrInco EVF 5.22 1.0 HowardHughes HHC 83.22 -2.3 MarinSoftware MRIN 2.80 -4.7 PNC FnlSvcs Wt PNC/WS 17.61 0.7 SouthcrossEnPtrs SXE 0.41 -4.9
EclipseResources ECR 0.70 -3.0 HuanengPowerADR HNP 29.78 -1.5 MrtnMarMat MLM 108.31 9.4 PROSHoldings PRO 9.01 2.5 StanleyB&DUn SWH 102.72 -0.3 Waters WAT 112.00 1.9
EmpireStateRealty ESRT 15.02 -2.3 HubSpot HUBS 27.46 -5.1 MasoniteIntl DOOR 47.26 -2.3 PandoraMedia P 7.72 1.1 StateStreetDepPfdD STTpD 25.22 -2.2 WellsFargo WFC 45.35 -0.1
Online>> EnableMidstream ENBL 5.96 -5.7 INGGroepDeb IND 24.11 -0.6 MasTec MTZ 12.77 -2.0 ParamountGroup PGRE 14.58 -1.5 StifelFinancial SF 29.34 1.1 Welltower HCN 54.41 -8.0
Welltower6.5%PfdI HCNpI 52.17 -5.2
During the trading day, 52-week highs and lows are updated hourly EndoChoiceHoldings GI 4.63 -11.6 INGGroepADR ING 10.54 -3.9 McKesson MCK 148.29 -0.7 ParkwayProperties PKY 11.99 -4.9 STMicroelectronics STM 5.19 -1.3
Energen EGN 26.11 -7.2 ING Grp 6.125Secs ISG 23.29 -1.8 MedleyCapital MCC 5.90 -6.4 PartyCityHoldco PRTY 7.53 -4.8 SumitomoMitsADR SMFG 5.21 -5.4 Welltower6.5%PfdJ HCNpJ 25.05 -0.7
at WSJMarkets.com. Lists for each market are available free, along EnergyTransfer ETP 18.62 2.7 Invesco IVZ 24.92 -0.5 MetaldynePerform MPG 10.93 -1.8 PaycomSoftware PAYC 22.42 -7.2 SummitMaterialsClA SUM 13.12 0.3 WstAllncBcp WAL 26.60 0.3
with easy access to charts and headlines. EnLinkMidstream ENLC 8.95 -4.1 IONGeophysical IO 3.87 -33.0 MetLife MET 35.80 ... PA Reit PEI 16.83 -2.2 Sunoco SUN 22.86 -3.9 Continued on Page C11

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C10 | Wednesday, February 10, 2016 THE WALL STREET JOURNAL.

COMMODITIES & CREDIT MARKETS

Futures Contracts | WSJ.com/commodities Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest

Metal & Petroleum Futures Contract Open Eurodollar (CME)-$1,000,000; pts of 100% June 1.1231 1.1381 s 1.1206 1.1329 .0075 8,295
Contract Open Open High hilo Low Settle Chg interest Feb 99.3650 99.3775 99.3600 99.3750 .0125 131,996
Open High hi lo Low Settle Chg interest June 99.3100 99.3300 99.2900 99.3150 .0050 1,305,694 Index Futures
Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Sept 99.2850 99.3200 99.2750 99.2900 … 1,215,124 Mini DJ Industrial Average (CBT)-$5 x index
Copper-High (CMX)-25,000 lbs.; $ per lb. March 13.51 13.53 13.28 13.39 –.06 233,486
Feb 2.0840 2.0900 2.0155 2.0385 –0.0500 1,113 Dec 99.2500 99.2900 99.2350 99.2500 –.0050 1,272,320 March 15965 16072 15773 15959 –29 64,616
May 13.40 13.43 13.25 13.35 … 242,392
March 2.0910 2.1040 2.0130 2.0395 –0.0510 90,211 June 15848 15968 15688 15872 –30 925
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Currency Futures S&P 500 Index (CME)-$250 x index
Gold (CMX)-100 troy oz.; $ per troy oz. May 25.27 25.27 25.27 25.27 –.18 2,982
Feb 1188.70 1199.20 1186.70 1198.70 0.80 2,416 Japanese Yen (CME)-¥12,500,000; $ per 100¥ March 1850.10 1862.50 t 1826.00 1848.20 –3.80 126,484
July 25.20 25.20 t 25.20 25.42 –.05 1,870
April 1189.50 1199.30 1185.90 1198.60 0.70 296,035 March .8664.8765 s .8648 .8703 .0025 234,707 June ... 1853.20 t 1818.20 1839.40 –3.80 2,674
June 1190.00 1199.80 1186.70 1199.10 0.70 59,331
Cotton (ICE-US)-50,000 lbs.; cents per lb. June .8689.8792 s .8676 .8730 .0027 1,604 Mini S&P 500 (CME)-$50 x index
March 59.57 59.75 t 58.25 58.64 –.96 81,838
Aug 1193.00 1200.30 1187.50 1199.70 0.70 13,992 Canadian Dollar (CME)-CAD 100,000; $ per CAD March 1849.75 1863.75 t 1825.75 1848.25 –3.75 3,013,528
May 60.16 60.40 t 58.91 59.24 –1.12 63,049
Dec 1194.90 1200.80 1189.00 1200.90 0.60 16,073 March .7177 .7253 .7163 .7198 .0022 149,757 June 1839.50 1854.75 t 1817.50 1839.50 –3.75 52,932
Dec'17 1200.30 1205.00 1198.10 1205.80 0.30 5,592 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. June .7178 .7255 .7167 .7200 .0022 3,950 Mini S&P Midcap 400 (CME)-$100 x index
March 133.20 135.05 131.25 132.20 –1.15 6,411
Palladium (NYM) - 50 troy oz.; $ per troy oz. British Pound (CME)-£62,500; $ per £ March 1254.80 1260.70 1237.90 1249.40 –6.90 99,927
May 133.35 134.95 131.20 132.40 –1.15 5,043
Feb 492.00 492.00 492.00 517.80 –1.25 1 March 1.4432 1.4517 1.4379 1.4455 .0015 256,920 Mini Nasdaq 100 (CME)-$20 x index
March 517.00 519.20 511.00 516.85 –1.25 22,221 June 1.4426 1.4521 1.4386 1.4460 .0015 1,751 March 3958.5 4004.0 t 3897.5 3944.3 –20.0 292,719
June 516.85 519.75 511.75 517.60 –1.20 4,974 Interest Rate Futures Swiss Franc (CME)-CHF 125,000; $ per CHF June 3929.3 3995.3 t 3893.3 3937.8 –20.0 613
Platinum (NYM)-50 troy oz.; $ per troy oz. Treasury Bonds (CBT)-$100,000; pts 32nds of 100% March 1.0141 1.0329 s 1.0139 1.0298 .0133 53,368 Mini Russell 2000 (ICE-US)-$100 x index
Feb 865.00 865.60 864.70 937.70 10.70 3 March 165-220 167-090 165-080 166-040 3.0 560,783 June 1.0223 1.0375 s 1.0187 1.0345 .0135 433 March 966.90 974.80 953.20 960.60 –9.40 436,889
April 929.10 939.90 s 922.50 939.40 10.70 60,195 June 164-150 165-270 163-310 164-250 3.0 9,795 Australian Dollar (CME)-AUD 100,000; $ per AUD June 962.40 962.40 955.90 955.90 –8.60 68
Silver (CMX)-5,000 troy oz.; $ per troy oz. Treasury Notes (CBT)-$100,000; pts 32nds of 100% March .7072 .7085 .6962 .7043 –.0029 113,598 Mini Russell 1000 (ICE-US)-$100 x index
Feb 15.390 15.395 15.340 15.444 0.028 140 March 131-060 131-240 131-005 131-100 .5 2,940,227 June .7033 .7056 .6935 .7014 –.0029 839 March 1006.50 1024.00 1006.50 1016.20 –4.10 7,665
March 15.360 15.470 15.205 15.449 0.023 98,584 June 130-260 131-080 130-200 130-280 1.5 91,545 Mexican Peso (CME)-MXN 500,000; $ per MXN U.S. Dollar Index (ICE-US)-$1,000 x index
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% March .05354 .05354 t .05269 .05304 –.00014 103,030 March 96.69 96.85 t 95.68 96.09 –.49 74,162
March 30.17 30.61 27.74 27.94 –1.75 428,564 March 121-155 121-252 121-142 121-170 –.7 2,636,644 June .05250 .05318 t .05236 .05269 –.00016 53,636 June 96.67 96.91 t 95.82 96.19 –.49 2,271
April 32.04 32.48 29.57 29.74 –1.90 290,505 June 121-162 121-192 121-095 121-127 .5 93,470 Euro (CME)-€125,000; $ per €
May 33.67 34.20 31.28 31.41 –2.02 171,831 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% March 1.1209 1.1349 s 1.1172 1.1296 .0074 425,697 Source: SIX Financial Information
June 35.09 35.59 32.65 32.74 –2.18 172,700 March 109-170 109-195 109-162 109-167 –.7 1,124,287
Dec 39.34 39.94 36.90 36.98 –2.55 185,248 June 109-165 109-187 109-162 109-162 … 46,285
Dec'17 43.20 43.70 40.78
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
40.89 –2.68 91,385 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Feb 99.628 99.628 t 99.625 99.628 –.007 115,046 Bonds | WSJ.com/bonds
March 1.0510 1.0581 .9720 .9749 –.0715 74,669 April 99.625 99.640 s 99.620 99.625 … 141,301
1.0605 1.0690 .9840 .9864 –.0693 63,332 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
April
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. March 107.719 108.063 s 107.531 107.875 .438 29,171 Tracking Bond Benchmarks
March .9563 .9666 t .8975 .8989 –.0572 88,881 1 Month Libor (CME)-$3,000,000; pts of 100% Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
April 1.1853 1.1950 t 1.1253 1.1264 –.0577 72,803 Feb ... 99.5675 ... 99.5675 .0150 ...
highs and lows for different types of bonds
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
March 2.129 2.134 2.065 2.098 –.042 212,276 Total return Yield (%), 52-Week Range l Latest
April 2.170 2.179 2.124 2.149 –.040 165,089 close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High
May 2.231 2.240 2.190 2.209 –.041 130,281 Dividend Changes 1863.72 2.0 Broad market Barclays Aggregate 2.270 2.000 l 2.630
June 2.269 2.289 2.245 2.263 –.038 50,060
2.341 2.347 2.310 2.326 –.033 60,434 Dividend announcements from February 9.
July 2486.78 0.7 U.S. Corporate Barclays Capital 3.630 2.830 l 3.710
Oct 2.399 2.408 2.372 2.391 –.028 70,111 Amount Payable /
Company Symbol Yld % New/Old Frq Record 2433.03 0.6 Intermediate 3.040 2.230 l 3.120
Agriculture Futures 3173.80 0.7 Long term 5.010 4.170 l 5.120
Corn (CBT)-5,000 bu.; cents per bu. Increased
March 362.25 362.75 359.25 361.00 –1.25 485,639 4.65% Fltg. Rate STRATS GJO 1.4 .0234 /.02108 M Feb16 /Feb12 527.93 1.5 Double-A-rated 2.490 2.070 l 2.700
May 366.75 367.50 364.00 366.00 –1.00 343,728 Compass Minerals CMP 3.9 .695 /.66 Q Mar15 /Feb29
Hasbro HAS 2.8 .51 /.46 Q May16 /May02 610.95 -0.2 Triple-B-rated 4.380 3.300 l 4.400
Oats (CBT)-5,000 bu.; cents per bu.
March 199.00 200.00 195.00 195.75 –3.25 5,201 Owens & Minor OMI 2.8 .255 /.2525 Q Mar31 /Mar15 316.31 -4.4 High Yield Constrained Merrill Lynch 9.905 5.853 l 9.905
May 201.00 203.50 198.75 200.75 –.25 3,496 Primerica PRI 1.7 .17 /.16 Q Mar16 /Feb19
Soybeans (CBT)-5,000 bu.; cents per bu. STRATS Sers 2006-1 P&G GJR 1.3 .0209 /.02041 M Feb16 /Feb15 257.07 -8.0 Triple-C-rated 21.255 10.017 21.255
l
March 862.75 866.50 859.50 863.25 .75 256,337 STRATS Tr Allstate 2006-3 GJT 1.6 .0241 /.02219 M Mar01 /Feb29 2282.75 -3.8 High Yield 100 8.406 5.016 l 8.696
May 866.75 870.00 863.50 867.25 .75 194,889 Terra Nitrogen TNH 11.0 2.88 /2.81 Q Feb29 /Feb18
WGL Holdings WGL 2.9 .4875 /.4625 Q May01 /Apr10 293.21 -3.5 Global High Yield Constrained 9.260 5.894 l 9.295
Soybean Meal (CBT)-100 tons; $ per ton.
March 264.40 265.20 t 261.60 263.10 –1.40 136,139 255.79 -2.8 Europe High Yield Constrained 5.928 3.550 l 6.412
May 266.20 267.00 t 263.50 265.10 –1.10 106,949
Reduced
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Bristow Group BRS 1.9 .07 /.34 Q Mar15 /Mar01 1612.09 1.9 U.S Agency Barclays 1.300 1.170 l 1.680
30.75 30.92 30.48 30.70 –.05 124,919 FR STRATSs 2006-2 GS Grp GJS 1.5 .0233 /.02469 M Feb16 /Feb15
March 1448.92 1.4 10-20 years 1.110 0.980 l 1.480
May 30.96 31.16 30.73 30.94 –.05 116,770 STRATS Dom Res Ser 05-06 GJP 3.7 .0635 /.0637 M Feb16 /Feb12
Rough Rice (CBT)-2,000 cwt.; $ per cwt. 3203.96 6.5 20-plus years 2.810 2.700 l 3.370
Initial
March 1078.00 1094.00 1068.00 1076.00 –16.00 8,870 1.6
First Cash Financial Svcs FCFS .125 Mar15 /Mar01 1937.02 Mortgage-Backed Barclays 2.400 2.320 l 2.900
May 1115.00 1119.50 t 1099.50 1104.00 –15.00 3,190
Wheat (CBT)-5,000 bu.; cents per bu. Funds and investment companies 1910.95 1.2 Ginnie Mae (GNMA) 2.340 2.180 l 2.860
March 458.75 460.25 t 455.00 457.50 –1.00 181,481 Amer Cap Senior Floating ACSF 13.9 .097 M Mar02 /Feb19 1134.21 1.7 Fannie mae (FNMA) 2.410 2.370 l 2.910
May 463.00 464.25 t 459.25 461.75 –1.25 112,049 Amer Cap Senior Floating ACSF 13.9 .097 M Apr04 /Mar23
Wheat (KC)-5,000 bu.; cents per bu. 1745.34 1.7 Freddie Mac (FHLMC) 2.440 2.370 l 2.930
Amer Cap Senior Floating ACSF 13.9 .097 M May03 /Apr21
March 445.50 446.50 t 442.25 445.00 –.50 85,478
July 465.00 466.00 t 461.75 464.75 –.50 56,591
Brookfield TR Fund HTR 9.8 .19 M Feb25 /Feb18 507.33 1.5 Muni Master Merrill Lynch 1.489 1.489 l 2.099
Clough Glbl Alloc Fd GLV 13.2 .12 M Feb29 /Feb19
Wheat (MPLS)-5,000 bu.; cents per bu. Clough Glbl Alloc Fd GLV 13.2 .12 M Mar31 /Mar18 355.97 2.1 7-12 year 1.464 1.464 l 2.144
March 486.00 488.00 485.00 487.50 1.25 29,220
Clough Glbl Alloc Fd GLV 13.2 .12 M Apr29 /Apr15 391.91 1.4 12-22 year 1.952 1.948 l 2.636
May 493.00 493.00 t 490.00 492.50 .50 18,205
Clough Glbl Eqty Fd GLQ 13.4 .115 M Feb29 /Feb19 372.53 1.5
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. 22-plus year 2.638 2.638 l 3.351
Clough Glbl Eqty Fd GLQ 13.4 .115 M Mar31 /Mar18
March 148.525 151.100 148.000 149.000 –.325 15,247
Aug 148.950 151.350 t 148.725 149.700 .550 7,496
Clough Glbl Eqty Fd GLQ 13.4 .115 M Apr29 /Apr15 2248.17 0.5 Yankee Barclays 2.980 2.430 l 3.110
Clough Global Opp Fd GLO 13.5 .10 M Feb29 /Feb19
Cattle-Live (CME)-40,000 lbs.; cents per lb. Clough Global Opp Fd GLO 13.5 .10 M Mar31 /Mar18 536.49 2.9 Global Government J.P. Morgan 1.250 1.250 l 1.780
Feb 130.800 132.700 130.750 131.400 –1.650 13,714
April 130.400 132.300 130.400 131.150 –.250 122,533 Clough Global Opp Fd GLO 13.5 .10 M Apr29 /Apr15 772.82 2.3 Canada 1.390 1.390 l 1.970
Global High Income Fd GHI 9.4 .0657 M Feb29 /Feb18
Hogs-Lean (CME)-40,000 lbs.; cents per lb. 363.21 1.5 EMU 1.041 0.724 l 1.609
Feb 65.000 65.475 64.600 64.850 –.175 18,176 Liberty All-Star Growth ASG 9.0 .08 Q Mar28 /Feb18
April 69.400 70.250 69.200 69.625 –.100 79,977 Managed High Yield Plus HYF 8.2 .0115 M Feb29 /Feb18 699.42 2.5 France 0.800 0.490 l 1.360
Source Capital SOR 2.5 .41 Q Mar15 /Feb19
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Strategic Global SGL 9.4 .0674 M Feb29 /Feb18 511.12 3.4 Germany 0.330 0.160 l 1.040
March 251.60 254.00 244.80 250.70 –.70 3,357
May 247.80 250.90 242.00 247.40 –.40 1,749 284.96 2.4 Japan 0.420 0.420 l 0.890
Foreign
Milk (CME)-200,000 lbs., cents per lb. Pembina Pipeline PBA 6.2 .11066 M Mar15 /Feb25 559.39 3.1 Netherlands 0.520 0.240 l 1.130
Feb 13.81 13.83 13.78 13.81 .03 4,816
March 13.86 13.97 13.84 13.96 .09 4,843
Santander Fin 6.41%s 1 SANpI 6.6 .40063 Q Mar11 /Feb25 867.57 5.1 U.K. 1.860 1.850 l 2.480
Smith & Nephew ADR SNN 1.5 .38 May11 /Apr22
Cocoa (ICE-US)-10 metric tons; $ per ton. n.a. n.a. Emerging Markets ** n.a. n.a. n.a.
March 2,840 2,850 2,780 2,837 –21 35,915 Special
May 2,859 2,872 2,797 2,859 –11 77,966 CNA Financial CNA 3.3 2.00 Mar09 /Feb22 *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
Coffee (ICE-US)-37,500 lbs.; cents per lb. ** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan
March 115.95 116.75 114.60 114.75 –1.00 59,007 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
May 117.95 118.85 116.75 116.85 –1.10 58,142 semiannual; S2:1: stock split and ratio; SO: spin-off.
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
ADVERTISEMENT
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago

The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
0.750
2.250
U.S. 2 0.686 s
10 1.729 t
l
l
0.670
1.749
0.932
2.117
0.656
1.981
5.500 Australia 2 1.762 t l 1.882 2.018 1.986 107.6 121.2 133.0
4.250 10 2.419 t l 2.597 2.728 2.558 69.0 84.8 57.6
FRANCHISE BUSINESS OPPORTUNITIES 4.250 France 2 -0.433 t l -0.423 -0.345 -0.097 -109.3 -75.3
-112.0
1.000 10 0.617 s l 0.600 0.880 0.611 -111.2 -114.9 -137.0

  0.500 Germany 2 -0.515 t l -0.505 -0.390 -0.196 -120.1 -117.5 -85.1
 
 0.500 10 0.238 s l 0.220 0.517 0.326 -149.1 -152.9 -165.6
 


4.500 Italy 2 0.086 s l 0.073 -0.001 0.343 -60.0 -59.8 -31.3

 
   2.000 10 1.685 t l 1.701 1.520 1.633 -4.5 -4.8 -34.8

      0.100 Japan 2 -0.240 t l -0.193 -0.019 0.047 -92.7 -86.3 -60.9
    0.300 10 -0.023 t l 0.037 0.230 0.355 -175.2 -171.2 -162.6
 !   0.500 Spain 2 0.046 s l 0.029 0.009 0.331 -64.0 -64.1 -32.5
!    "
  # 2.150 10 1.785 s l 1.759 1.717 1.571 5.6 1.0 -41.0
$ % &
1.000 U.K. 2 0.326 s l 0.313 0.507 0.416 -36.0 -35.8 -24.0
2.000 10 1.415 s l 1.415 1.774 1.616 -33.4 -36.6


  -31.4

 
    Source: Tullett Prebon

 
  
   

 
 
    

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…
Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Winery Resort
Beautiful seasoned winery and inn seeks salesforce.com CRM 0.250 April 1, ’18 344 –55 551 57.33 6.07
business partner to position company for Credit Suisse Funding CS 3.750 March 26, ’25 228 –53 231 … …
next stage, a wellness resort focused on Shell International Finance RDSALN 2.125 May 11, ’20 142 –32 133 ... ...
an exploding growth market. Freeport–McMoRan Oil & Gas FCX 6.500 Nov. 15, ’20 2040 –22 2328 … …
$250,000 delivers 20%.
Tyler Chernack Anglo American Capital AALLN 4.125 Sept. 27, ’22 1203 –15 1254 ... ...
tychernack@gmail.com Burlington Northern Santa Fe BNSF 3.850 Sept. 1, ’23 129 –15 n.a. ... ...
General Electric GE 4.500 March 11, ’44 155 –15 152 28.28 0.39
Morgan Stanley MS 6.625 April 1, ’18 142 –15 145 22.93 1.15
CAPITAL WANTED …And spreads that widened the most
JPMorgan Chase JPM 7.900 April 30, ’49 742 99 525 56.20 –0.60
BUSINESS FOR SALE BUSINESS OPPORTUNITIES
Brixmor Operating Partnership BRX 3.850 Feb. 1, ’25 412 84 223 … …
Real estate expert with proven track record
is seeking strategic partner or equity capital Credit Agricole S.A. ACAFP 8.125 Dec. 23, ’49 762 67 574 ... ...

  
 to purchase and develop luxury, ocean view
properties in California’s most
Kinder Morgan KMI 5.000 Feb. 15, ’21 590 66 475 14.61 –2.08

RADIO STATION SALE   

 desirable coastal neighborhoods. Ideal for
Barclays
Williams Partners
BACR
WPZ
3.650 March 16, ’25
6.125 July 15, ’22
340
934
54
54
231
859
...
13.26
...
–7.85
individuals seeking stable, attractive returns.
THE only AM/FM station!
  
 For more information: Plains All American Pipeline PAA 6.500 May 1, ’18 706 53 569 15.88 –10.64
§ Vibrant/Booming/Growing City
§ Exciting 59th USA Market        JRM2397@GMAIL.COM Canadian Natural Resources CNQCN 3.450 Nov. 15, ’21 744 51 n.a. ... ...
§ Valuable real estate
§ 20 Medical Facilities § 2 Major

      
 High-yield issues with the biggest price increases…
Universities § #1 College Football Team
Bid on the BEST radio deal in the USA! 
    TRAVEL
Bond Price as % of face value Stock Perfomance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Get “offering” ~ Bob@thelifefm.com   



WPX Energy WPX 5.250 Jan. 15, ’17 97.000 3.50 96.000 4.64 2.65
 
   

 Sprint S 7.250 Sept. 15, ’21 66.000 2.50 69.500 2.65 3.92
     

  
  

Yum! Brands YUM 6.875 Nov. 15, ’37 88.000 1.88 87.250 66.47 –1.42
MACHINE SHOP  Energy XXI Gulf Coast EXXI 7.500 Dec. 15, ’21 3.400 1.40 3.250 … …

  



OKLAHOMA AREA 26 YEARS IN BUSINESS PHI PHII 5.250 March 15, ’19 81.000 1.25 83.000 16.00 –9.09
5-6M ANNUAL SALES TransDigm TDG 6.000 July 15, ’22 95.250 1.25 97.500 187.29 –12.74
AUTOMOTIVE & OIL FIELD EQUIP EXCLUSIVE  
 
 Freeport–McMoRan FCX 4.550 Nov. 14, ’24 48.719 1.22 43.000 5.00 –5.12
OVER 150 CUSTOMERS 30 EMP.
ALSO PIPE & TUBING CO.
GOLF DISTRIBUTORSHIP   
BioMarin Pharmaceutical BMRN 0.750 Oct. 15, ’18 103.923 1.01 106.663 65.11 0.57
Larry Aspegren, Aspen Com’l Realty FROM HOME.
405 720 1616 AspegrenLL@aol.com Pur. $3k Inv. / Earn $9k/Mo. …And with the biggest price decreases

No Selling! 100% Secured. 

 !" Royal Bank of Scotland RBS 7.500 Aug. 10, ’49 87.875 –7.63 100.125 6.55 –1.65
contact@putterofthefuture.com Chesapeake Energy CHK 7.250 Dec. 15, ’18 16.500 –7.00 35.500 1.95 –4.41
Denbury Resources DNR 5.500 May 1, ’22 19.000 –6.38 35.500 1.17 –7.14
40 Yr. Established WINDOW COVERING BUSINESS
  
 California Resources CRC 8.000 Dec. 15, ’22 23.000 –6.00 36.000 0.85 –7.35
Swimming Pool, Spa Sales, Construction IN THE S.F. AREA

   Halcon Resources HKUS 8.625 Feb. 1, ’20 50.250 –4.75 60.000 ... ...
Retail for Residential & Commercial. VOLUME $3 MILLION AND GROWING, Commerzbank AG CMZB 8.125 Sept. 19, ’23 103.438 –4.54 111.875 ... ...
WHOLESALE AND TO THE TRADE ONLY.  


Turn Key, Owner retiring 25,000 SQ.FT. FACILITY. LOOKING FOR A
 
     Springleaf Finance AMGFIN 7.750 Oct. 1, ’21 87.250 –4.25 94.000 ... ...
Located between Albany and Saratoga, NY PARTNER OR INVESTOR, MINIMUM       EP Energy EPENEG 9.375 May 1, ’20 22.250 –3.75 38.750 ... ...
Send inquiries to : INVESTMENT $500.000 .   *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
P.O. Box 230, Mayfield, NY 12117 SHADECOMPANY39@YAHOO.COM  !"##$ 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
THE WALL STREET JOURNAL. Wednesday, February 10, 2016 | C11

NEW HIGHS AND LOWS

Continued From Page C9 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk %
52-Wk % Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
Stock Sym Hi/Lo Chg DB3xInvJapanGovBd JGBD 13.25 -0.1 iShMSCIBelgiumCap EWK 15.69 -0.4 WBITacticalSMV WBIB 20.74 -0.2 AethlonMedical AEMD 4.02 -6.7 CognizantTechSolns CTSH 51.22 -3.2 GuidanceSoftware GUID 3.27 -1.7 NXP Semi NXPI 61.61 2.4 SeresTherapeutics MCRB 21.12 -4.1
WstAstIncoFd PAI 12.64 -0.4 DB3xShrt25+YTreaBd SBND 3.62 0.3 iShMSCIGermanyETF EWG 22.67 -0.2 Wlshr US REIT WREI 40.78 -2.1 Affimed AFMD 2.81 2.7 CoherusBioSciences CHRS 12.04 1.4 H&E EquipSvc HEES 10.15 -4.8 NantKwest NK 6.32 ... ShilohIndustries SHLO 3.06 -5.3
WstAsset DefOptr IGI 19.50 -0.7 DeutschextrkrsCSI300ChinaA-SharesHdgEquity ASHX 19.27 -4.6 iShMSCIHongKong EWH 16.77 -0.9 WisdomTreeUSDBull USDU 27.05 -0.5 AgroFreshSolutions AGFS 4.25 -12.7 ColliersIntl CIGI 30.76 1.0 HDSupplyHoldings HDS 21.26 0.8 NatlHoldings NHLD 1.36 -3.9 ShireADR SHPG 147.85 0.5
WstAstVarRte GFY 14.95 -1.6 DBXEmergingMktsBd EMIH 22.54 -0.9 iShIntlDevQuality IQLT 22.47 -1.4 WisdomTreeEurope HEDJ 46.56 -1.8 AkamaiTechnologies AKAM 39.43 -3.4 CommsSales&Leasing CSAL 16.27 -2.5 HSN HSNI 40.93 -0.4 NatlWesternLifeClA NWLI 207.10 -2.5 SignalGenetics SGNL 0.44 -9.2
WesternGasPartners WES 25.61 -2.6 DeutschexFTSEDev DEEF 22.90 -1.8 iShMSCIIntlDevVal IVLU 18.87 -1.8 WisdomTreeEurHdgSC EUSC 20.57 -1.8 AlaskaCommsSystems ALSK 1.30 -9.0 ComputerTaskGroup CTG 5.60 -4.1 HTGMolecularDiagn HTGM 2.25 -7.0 NatureSunshine NATR 7.30 -2.0 Sizmek SZMK 2.71 -1.0
WesternRefining WNR 26.86 -3.3 DeutscheXNikkei400 JPN 20.74 -1.0 iShMSCIIrelandCap EIRL 35.08 -2.1 WisdmTrIndEarn EPI 17.37 -1.7 AlderBioPharm ALDR 19.05 2.1 comScore SCOR 33.74 -0.4 HabitRestaurantsA HABT 18.19 -4.2 Neothetics NEOT 0.76 -12.5 SkyworksSolutions SWKS 57.46 -2.3
WestpacBankingADR WBK 20.02 -4.2 DeutscheXACAPxJ DBAP 19.70 -3.3 iShMSCIItalyCapped EWI 10.67 -2.4 WisdomTrIntHdSCDiv HDLS 20.46 -1.6 AldeyraTherapeutic ALDX 3.39 -6.1 ConforMIS CFMS 8.18 -4.8 HalozymeThera HALO 7.00 -0.5 Net1UEPS UEPS 9.52 -1.9 Snyders-Lance LNCE 28.37 0.8
Weyerhaeuser WY 22.66 -1.4 DeutscheXAllChina CN 24.00 -0.2 iShMSCIJapanETF EWJ 10.63 -1.9 WisTreeJpnCapGds DXJC 19.42 -3.3 AlexzaPharm ALXA 0.22 -17.2 CoriumIntl CORI 4.62 -2.4 Hardinge HDNG 7.88 -0.4 NetScout NTCT 18.77 2.0 SonusNetworks SONS 5.17 -1.7
WeyerhaeuserPfdA WYpA 41.42 -2.1 DeutscheXMSCIAWxUS DBAW 20.18 -1.6 iShMSCISpainCapped EWP 24.34 -1.7 WisdomTreeJapanHdg DXJ 41.18 -2.6 Alkermes ALKS 27.78 -1.3 CoStarGroup CSGP 146.53 3.4 HeritageCrystal HCCI 7.92 -3.6 Neurocrine NBIX 31.25 -1.0 SorrentoTherap SRNE 4.50 -7.8
WhiteWaveFoods WWAV 32.94 0.2 DeutscheXMSCIEAFE DBEF 23.40 -1.8 iShMSCISwitzerland EWL 27.72 -0.9 WisTreeJpnFinls DXJF 18.46 -3.7 AlliedHealthcare AHPI 0.81 -2.9 CryoPort CYRX 1.03 -1.3 HighpowerIntl HPJ 1.65 -10.8 NewLinkGenetics NLNK 19.80 -1.4 SparkTherapeutics ONCE 21.20 -0.8
Wiley A JW/A 39.97 -0.9 DeutscheXEAFEHiDiv HDEF 20.50 -6.7 iShMicro-CapETF IWC 59.65 -0.8 AlliedMotionTechs AMOT 15.46 3.4 Cyanotech CYAN 4.71 -1.2 Hortonworks HDP 7.12 -4.6 NexstarBrdcstgA NXST 34.82 -3.2 SpectrumPharm SPPI 4.14 -2.5
WilliamLyonHomes WLH 8.66 -2.6 DeutschextrMSCIEur DBEZ 21.97 -1.9 iShGlobalConsDiscr RXI 77.16 -0.5 NYSE MKT highs - 9 AlliquaBioMedical ALQA 1.42 0.7 CyberArkSoftware CYBR 35.00 -5.4 HoughtonMifflin HMHC 16.20 -0.7 NorthernTrust NTRS 56.32 0.5 Splunk SPLK 31.01 ...
WilliamsPartners WPZ 12.69 -7.9 DeutscheXMSCIGerm DBGR 19.89 -1.3 iShChinaLarge-Cap FXI 28.56 -0.9 EtnVncCA MIT CEV 14.20 -0.1 AlnylamPharm ALNY 56.43 -2.3 CypressSemi CY 6.59 -2.7 IACInteractv IAC 38.82 -0.6 NorthwestPipe NWPX 8.00 -4.9 StanleyFurniture STLY 2.28 ...
Winnebago WGO 15.41 -2.7 DeutscheXMSCIJapan DBJP 31.75 -2.4 iSh0-5YHYCorpBd SHYG 42.73 -0.3 EtnVncNY ENX 13.30 0.2 AlphatecHoldings ATEC 0.15 -31.8 CytoriThera CYTX 0.13 -0.1 IcahnEnterprises IEP 46.55 -1.9 NorwegianCruise NCLH 37.01 2.6 StarzSeriesA STRZA 21.00 -5.4
Workday WDAY 47.32 -0.1 DeutschexRuss1000 DEUS 22.84 -2.1 JohnHancockMultFin JHMF 21.80 0.3 EtnVncNY II NYH 12.94 0.4 Amerco UHAL 305.66 0.7 DHXMediaVarVoting DHXM 4.84 -4.4 IgniteRestaurant IRG 3.20 -2.1 NovadaqTechs NVDQ 9.07 -3.8 StateBankFinancial STBZ 17.69 -0.4
WorkivaClA WK 11.39 -5.6 DirexnCyberBull2X HAKK 19.46 -6.3 JohnHancockMultTch JHMT 22.90 -5.5 InvescoAdvMuniII VKI 12.30 -0.5 AmericanPubEdu APEI 14.62 -1.4 DISHNetworkClA DISH 40.02 -3.8 Immersion IMMR 6.99 -7.0 OHAInvestment OHAI 3.15 -4.8 Stericycle SRCL 104.91 ...
Xactly XTLY 5.55 -5.1 DrxDevMktBull 3x DZK 33.04 -3.4 MVInvG FltRt FLTR 24.49 -0.2 MFS CA MunFd CCA 12.35 1.2 AmericanSci&Engg ASEI 24.05 -27.3 DXPEnterprises DXPE 13.92 -2.4 ImmuneDesign IMDZ 7.90 -1.5 OceanRigUDW ORIG 0.82 -10.9 Stericycle5.25PfdA SRCLP 81.95 2.2
XeriumTechnologies XRM 7.33 -3.8 DirexionChBull3X YINN 9.01 -2.8 MktVectorsIsrael ISRA 25.41 -1.4 NuvDivAdv2 NXZ 14.68 0.3 AmicusTherapeutics FOLD 5.00 2.3 DataIO DAIO 2.13 2.8 Immunogen IMGN 6.78 0.1 OdysseyMarineExpln OMEX 0.15 2.3 SunEdisonSemicon SEMI 4.42 -5.4
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LMNR 11.39 -2.4
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LNCO 0.19 9.9
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Marketo MKTO 15.17 -2.8 RockwellMedical RMTI 5.47 7.4 WTBofAMerLynHiYd HYND 17.48 -0.6
UBSAGFIEnhLCGrw FBGX 92.00 0.2 Chimerix CMRX 6.15 4.7 Gogo GOGO 11.93 5.1
MatchGroup MTCH 8.41 -0.8 RofinSinar RSTI 19.02 2.7 WTBofAMerLynZero HYZD 20.61 0.2
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Mattersight MATR 4.41 -3.2 SBACommunications SBAC 83.82 -1.3 WisdmTreeGermanHdg DXGE 22.38 -1.4
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Medivation MDVN 26.41 3.1 SFXEntertainment SFXE 0.01 -53.0 WisTreeJapHdgSmCap DXJS 29.18 -1.8
AdvShsPeritusHiYd HYLD 30.00 -1.7 iSh2016AMTFrMuniBd IBME 26.36 ... VanguardFTSEEurope VGK 43.66 -0.9 AegerionPharm AEGR 6.14 1.1 CidaraTherapeutics CDTX 9.56 -3.2 GoresHoldingsWt GRSHW 0.27 -32.5
MelcoCrownEntADR MPEL 12.09 -3.1 SPS Commerce SPSC 41.31 -8.5 Wix.com WIX 15.51 -6.7
STARGlobalBuyWrite VEGA 24.03 -1.1 iShIRHdg10+ CLYH 22.26 -1.9 VangdReit VNQ 71.44 -1.8 AehrTestSystems AEHR 1.01 -1.3 CitiTrends CTRN 15.46 -3.0 GreenBrickPartners GRBK 4.98 -1.7
MemorialResDev MRD 11.25 -11.1 SS&CTechs SSNC 53.41 0.2 WrightMedicalGroup WMGI 15.15 -5.6
CSOPFTSEChinaA50 AFTY 11.32 -0.3 iShMSCIAustriaCap EWO 13.30 -2.0 VelocityShares3x UWTI 1.36 -16.5 Aemetis AMTX 1.51 -6.9 ClovisOncology CLVS 17.76 -1.3 Groupon GRPN 2.15 -3.9
MercadoLibre MELI 84.19 -0.1 SVBFinancialGroup SIVB 80.37 -0.7 Xencor XNCR 9.89 5.1
MercerIntl MERC 5.95 -4.0 SabraHlthcrREIT SBRA 15.35 -8.9 XunleiADR XNET 5.40 -0.9
MerrimackPharm MACK 5.10 0.4 SalemMediaGroup SALM 3.61 -2.2 YRC Worldwide YRCW 6.25 1.2
Exchange-Traded Portfolios | WSJ.com/ETFresearch Middleby MIDD 80.29 2.2 SangamoBioSciences SGMO 5.23 -2.0 ZAISClA ZAIS 3.32 6.4
MillerHerman MLHR 23.32 -1.1 SareptaTherapeutic SRPT 10.20 4.1 ZELTIQAesthetics ZLTQ 19.34 1.3
Largest 100 exchange-traded funds, latest session Closing Chg YTD Closing Chg YTD Closing Chg YTD MiratiTherapeutics MRTX 17.94 0.6 SeaChange SEAC 5.35 -2.4 Ziopharm ZIOP 4.56 10.8
ETF Symbol Price (%) (%) ETF Symbol Price (%) (%) ETF Symbol Price (%) (%) MomentaPharm MNTA 10.53 -1.5 SearsCanada SRSC 3.43 -2.0 ZebraTechsClA ZBRA 52.14 0.4
Tuesday, February 9, 2016
iShMSCIEurozoneETF EZU 31.08 –0.80–11.3 SPDRBarclaysHiYdBd JNK 31.76 –0.47 –6.3 VangdTotlWrld VT 51.47 –0.71–10.7 MomoADR MOMO 7.97 -14.7 SearsHldgs SHLD 15.24 -8.8 ZillowGroupClA ZG 16.45 0.9
Closing Chg YTD MorgansHotelGroup MHGC 0.86 -10.5 SearsHometown SHOS 5.06 -1.1 ZionsBancorp ZION 20.16 0.2
ETF Symbol Price (%) (%) iShMSCIGermanyETF EWG 22.97 –0.17–12.3 SchwIntlEqty SCHF 24.55 –1.37–10.9 VanguardValueETF VTV 75.09 –0.12 –7.9
iShMSCIJapanETF EWJ 10.72 –1.92–11.6 SchwUS BrdMkt SCHB 44.04 –0.14–10.2 WisdomTreeEurope HEDJ 47.10 –1.75–12.5 MultiColor LABL 48.04 -13.9 SeaSpineHoldings SPNE 12.26 -6.1 ZynerbaPharma ZYNE 5.14 -8.4
AlerianMLPETF AMLP 8.68 –3.46–28.0 NMIHoldingsClA NMIH 4.19 7.7 SeattleGenetics SGEN 28.04 -1.1 ZNGA 1.93 -2.9
iShMSCIUSAMinVol USMV 40.10 0.02 –4.1 SchwUS LrgCap SCHX 43.85 –0.02 –9.7 WisdomTreeJapanHdg DXJ 41.75 –2.64–16.6 Zynga
CnsmrDiscSelSector XLY 68.69 –0.16–12.1
iShNasdaqBiotech IBB 248.40 0.11–26.6 SPDR DJIA Tr DIA 160.24 –0.07 –7.9
CnsStapleSelSector XLP 49.83 0.67 –1.3
iShNatlAMTFrMuniBd MUB 111.95 0.01 1.1 SPDR GldTr GLD 113.58 –0.22 11.9
DBGoldDoubleLgETN DGP 22.65 –0.40 24.9
iShRussell1000Gwth IWF 88.88 0.09–10.7 SPDR S&PMdCpTr MDY 228.22 –0.28–10.2
DBGoldDoubleShrt DZZ 6.93 0.80–21.9 iShRussell1000ETF IWB 102.16 –0.18 –9.8 SPDR S&P 500 SPY 185.43 0.01 –9.0
DeutscheXMSCIEAFE DBEF 23.66 –1.83–12.9 iShRussell1000Val IWD 89.11 –0.35 –8.9 SPDR S&P Div SDY 72.04 –0.11 –2.1
EnSelectSectorSPDR XLE 54.31 –2.41–10.0 iShRussell2000Gwth IWO 113.76 –0.46–18.3 TechSelectSector XLK 38.75 –0.46 –9.5
FinSelSectorSPDR XLF 20.39 –0.15–14.4 iShRussell2000ETF IWM 95.78 –0.67–15.0 UtilitiesSelSector XLU 46.57 0.34 7.6
GuggenheimSP500EqW RSP 69.03 –0.30 –9.9 iShRussell2000Val IWN 81.49 –0.78–11.4 VangdInfoTch VGT 94.19 –0.46–13.0
HealthCareSelSect XLV 63.99 0.74–11.2 IWV 108.01 VHT 115.31
iShRussell3000ETF –0.16–10.2 VangdHlthCr 0.67–13.2
IndSelSectorSPDR XLI 49.92 0.60 –5.8 IWR 141.45 VBR 88.37
iShRussellMid-Cap –0.33–11.7 VangdSmCapValue –0.47–10.5
iShIntermCredBd CIU 108.10 0.05 0.8 IWS 61.84
iShRussellMCValue –0.66 –9.9 VangdDivApp VIG 74.20 0.30 –4.6 Get instant access to markets data and business news when you’re on
iSh1-3YCreditBond CSJ 104.72 –0.09 0.1 IJK 142.39 VEA 32.73 EXCLUSIVELY
iShS&PMC400Growth 0.01–11.5 VanguardFTSEDevMk –1.09–10.9
iSharesTIPSBondETF TIP 111.22 –0.22 1.4 the go. With real-time tickers, graphs and news alerts, it’s your instant
iSh3-7YTreasuryBd IEI 125.99 –0.03 2.8
iShS&P500Growth IVW 103.69 0.29–10.5 VanguardFTSEEmgMk VWO 29.49 –1.26 –9.8 FOR
iShS&P500ValueETF IVE 81.61 –0.39 –7.8 VanguardFTSEEurope VGK 44.19 –0.87–11.4
iShCoreMSCIEAFEETF IEFA 48.24 –1.19–11.3 iSharesUSPreferred PFF 36.83 –0.89 –5.2 VangdAllWldxUS VEU 38.74 –1.15–10.8
markets briefing delivered straight to your iPhone. If it’s worth knowing, SUBSCRIBERS
iShCoreMSCIEmgMk IEMG 35.68 –1.38 –9.4 iShShortTreasuryBd SHV 110.31 0.02 0.1 VangdGrowth VUG 94.03 0.04–11.6 it’s in the What’s News App.
iShCoreS&P500ETF IVV 186.24 –0.04 –9.1 iSh1-3YTreasuryBd SHY 85.02 –0.04 0.8 VangdHiDivYld VYM 63.38 –0.11 –5.0
iShCoreS&PMdCp IJH 125.12 –0.25–10.2 iSh7-10YTreasuryBd IEF 110.59 0.02 4.7 VngdInter-Term BIV 85.10 –0.06 2.5
iShCoreS&PSmCpETF IJR 97.97 –0.50–11.0 iSh20+YTreasuryBd TLT 131.63 0.11 9.2 VangIntrCorpBd VCIT 84.45 –0.15 0.4
iShCoreUSAggBd AGG 109.73 –0.01 1.6 iShChinaLarge-Cap FXI 28.87 –0.93–18.2 VangdLgCap VV 84.53 –0.04 –9.6
iShSelectDividend DVY 74.59 –0.04 –0.7 iShRussellMCGrowth IWP 79.52 –0.03–13.5 VangdMdCap VO 105.02 –0.15–12.6
iSharesGold IAU 11.46 –0.35 12.0 MktVectorsBiotech BBH 96.11 0.58 –6.2 VangdReit VNQ 72.00 –1.84 –9.7
iShiBoxx$InvGrCpBd LQD 113.61 –0.34 –0.4 MktVectorsGoldMin GDX 16.75 –4.12 22.1 VanguardS&P500 VOO 169.99 0.03 –9.1
iShiBoxx$HYCpBd HYG 76.21 –0.38 –5.4 MktVectorsOilSvcs OIH 22.36 –4.32–15.5 VangdShrtTrm BSV 80.40 ... 1.0
iShMBSETF MBB 109.35 0.07 1.5 MktVectorsPharm PPH 57.07 –0.02 –5.7 VangShrtCorpBd VCSH 79.05 –0.06 0.1
iShMSCIACWIETF ACWI 50.20 –0.55–10.1 MktVectorsRetail RTH 68.13 0.18–12.3 VangdSmCap VB 95.99 –0.59–13.2
iSharesMSCIEAFESC SCZ 44.13 –1.03–11.7 MktVectorsSemi SMH 46.63 –0.43–12.5 VangdTtlBndMkt BND 82.05 –0.01 1.6
iSharesMSCIEAFEETF EFA 52.20 –1.16–11.1 PwrShrs QQQ QQQ 96.32 –0.31–13.9 VanguardTtlIntlStk VXUS 40.36 –1.37–10.5
iShMSCIEmgMarkets EEM 29.19 –1.39 –9.3 PS SP500LoVoltlPrt SPLV 37.07 0.43 –3.9 VangdTtlStock VTI 93.66 –0.13–10.2

Cash Prices | WSJ.com/commodities Tuesday, February 9, 2016

These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Tuesday Tuesday Tuesday
Cheddar cheese,blk,Chicago 147.00
Energy Grains and Feeds Milk,Nonfat dry,Chicago lb. 73
Propane,tet,Mont Belvieu-g 0.3593 Barley,top-quality Mnpls-u n.a. Cocoa,Ivory Coast-w 3081
Butane,normal,Mont Belvieu-g 0.5851 Bran,wheat middlings, KC-u 100 Coffee,Brazilian,Comp 1.2174
NaturalGas,HenryHub-i 2.170 Corn,No. 2 yellow,Cent IL-bp,u 3.5400 Coffee,Colombian, NY 1.3650
NaturalGas,TranscoZone3-i 2.160 Corn gluten feed,Midwest-u,w 104.3 Eggs,large white,Chicago-u 1.5750
NaturalGas,TranscoZone6NY-i 3.460 Corn gluten meal,Midwest-u,w 458.7 Flour,hard winter KC 12.85
NaturalGas,PanhandleEast-i 2.030 Cottonseed meal-u,w 240 Hams,17-20 lbs,Mid-US fob-u 0.67
NaturalGas,Opal-i 1.960 Hominy feed,Cent IL-u,w 95 Hogs,Iowa-So. Minnesota-u 64.89
NaturalGas,MarcellusNE PA-i 1.340 Meat-bonemeal,50% pro Mnpls-u,w 198 Pork bellies,12-14 lb MidUS-u n.a.
NaturalGas,HaynesvilleN.LA-i 2.070 Oats,No.2 milling,Mnpls-u 2.5075 Pork loins,13-19 lb MidUS-u 0.9986
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.050 Rice, 5% Broken White, Thailand-l,w 367.00 Steers,Tex.-Okla. Choice-u n.a.
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 9.550 Rice, Long Grain Milled, No. 2 AR-u,w 23.00 Steers,feeder,Okla. City-u,w 176.88
Sorghum,(Milo) No.2 Gulf-u 7.4725
Metals SoybeanMeal,Cent IL,rail,ton48%-u 272.10 Fats and Oils
Gold, per troy oz Soybeans,No.1 yllw IL-bp,u 8.5400 Corn oil,crude wet/dry mill-u 40.2500
Engelhard industrial 1198.68 Wheat,Spring14%-pro Mnpls-u 5.8250 Grease,choice white,Chicago-u 0.2550
Engelhard fabricated 1288.58 Wheat,No.2 soft red,St.Louis-bp,u 4.6500 Lard,Chicago-u n.a.
Handy & Harman base 1191.00 Wheat - Hard - KC (USDA) $ per bu-u 4.2700 Soybean oil,crude;Centl IL-u 0.2944
Handy & Harman fabricated 1322.01 Wheat,No.1soft white,Portld,OR-u 5.2225 Tallow,bleach;Chicago-u 0.2650
LBMA Gold Price AM *1173.40 Tallow,edible,Chicago-u 0.2850
LBMA Gold Price PM *1193.25 Food
Krugerrand,wholesale-e 1246.65 Beef,carcass equiv. index KEY TO CODES: A=ask; B=bid; BP=country elevator
choice 1-3,600-900 lbs.-u 202.86 bids to producers; C=corrected; D=Ryan's Notes;
Maple Leaf-e 1258.64 E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas
American Eagle-e 1258.64 select 1-3,600-900 lbs.-u 198.29
Intelligence; L=livericeindex.com; M=midday;
Mexican peso-e 1453.27 Broilers,dressed 'A'-u 1.1150 N=nominal; n.a.=not quoted or not available; R=SNL
Austria crown-e 1177.97 Broilers, National comp wghtd-u,w 0.8083 Energy; S=The Steel Index; T=Cotlook Limited;
Austria phil-e 1258.64 Butter,AA Chicago 2.1350 U=USDA; W=weekly, Z=not quoted. *Data as of 2/8
Silver, troy oz. Cheddar cheese,bbl,Chicago 146.50 Source: WSJ Market Data Group
Engelhard industrial 15.3500
Engelhard fabricated 18.4200
15.4400
Costa Rica 9 Day Tour $1095
Handy & Harman base
Handy & Harman fabricated 19.3000
LBMA spot price £10.6314
(U.S.$ equivalent) 15.3400 Guided Tours Since 1952 +tax,fees
Coins,wholesale $1,000 face-a 13578

REAL-TIME IN NO TIME.
Guatemala, Tikal 10 days $1295
Other metals
LBMA Platinum Price PM *913.0 ● Costa Rica 9 days $1095
Platinum,Engelhard industrial 935.0 Panama & Canal 8 days $1195
Platinum,Engelhard fabricated 1035.0 Nova Scotia, P�E�I� 10 days $1395
Palladium,Engelhard industrial 522.0
Palladium,Engelhard fabricated 622.0 Canadian Rockies 9 days $1595
Aluminum, LME, $ per metric ton *1496.0 Grand Canyon 8 days $1395
Antimony-d 2.6000 Volcanoes, Rainforests, and California Coast 8 days $1395
Copper,Comex spot 2.0385 Beaches. All Meals Included! Mount Rushmore 8 days $1295
Lead,NA solder-d 111.930
Iron Ore, 62% Fe CFR China-s n.a. Caravan makes it so easy and New England 8 days $1295
Shredded Scrap, US Midwest-s,w
Stainless steel scrap,US-d
185
1560
affordable to visit Costa Rica.
9-Day fully guided vacation “ Brilliant, Affordable Pricing ” Download the What’s News App today.
Steel, HRC USA, FOB Midwest Mill-s 399 —Arthur Frommer, Travel Editor
Tin,NA solder-d 969.946 package. Call for choice dates.
Zinc,NA-d 85.700 —¡Hasta la vista! Free 28-Page Brochure:
Fibers and Textiles
Burlap,10-oz,40-inch NY yd-n,w 0.5500
Cotton,1 1/16 std lw-mdMphs-u 0.5889 © 2016 Dow Jones & Co., Inc. All rights reserved. 3DJ2115
Cotlook 'A' Index-t *67.00
Hides,hvy native steers piece fob-u 71.000
Wool,64s,staple,Terr del-u,w n.a.
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 10, 2016 THE WALL STREET JOURNAL.

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

Snapchat
Isn’t Answer
Deutsche Bank’s Capital Concern OVERHEARD
Deutsche Bank epito- example, could add signifi- Cloud stocks have lost a
Spent Capital
For Viacom mizes most of what ails Eu-
ropean banks. Poor profit-
ability will take an age to fix,
Share-price performance
cantly to the bill. The bank
also hasn’t taken account of
the nationally imposed coun-
lot of their fluff of late.
Enough even to draw a bear
from its den.
0%
Viacom is trying to give and that makes it hard for tercyclical capital add-on This year’s market selloff
the MTV generation a face- the German lender to add to that may be implemented in has been hard on tech
lift. But regaining the value its capital base. It needs to –10 coming years. stocks—especially the richly
of youth is proving difficult. reach a higher ratio by 2019. Regulators have told valued providers of cloud-
Viacom’s earnings met ex- Equity and bond investors –20 Deutsche Bank it must meet software services. Until re-
pectations when it reported are worried that they will a common-equity Tier 1 capi- cently, this was one of the
fiscal first-quarter re- lose future payouts if any- –30 tal ratio of 10.75% this year, hottest areas of tech. Not
sults Tuesday. Yet net in- thing knocks its finely bal- which rises to 12.25% at the now, at least in stock-market
come and operating income anced plans off course. Standard Chartered start of 2019—and that is terms. Stocks in the BVP
–40 Barclays
both tumbled by 10% from a Deutsche Bank shares are without any countercyclical Cloud Index are down an av-
Deutsche Bank
year ago. Revenue, which fell down more than 40% this add-on. The bank’s plans erage of 33% since the start
–50 UniCredit
6%, missed Wall Street’s year and trade at less than take it to at least 12.5% at of the year, while the Nasdaq
forecast. Viacom also an- one-third of book value. The Jan. Feb. the start of 2019. Composite is off 15%.
nounced an agreement with stock looks trapped there. Sources: FactSet; Zuma Press (photo) John Cryan, co-CEO of Mr. Cryan may be right The leader of the cloud
Snapchat to bring new Com- The fear: Any recovery could THE WALL STREET JOURNAL. Deutsche Bank that when Deutsche Bank group—Salesforce.com—was
edy Central and MTV chan- see it pull the trigger on an- has spent years giving inves- down more than 30% before
nels to the vanishing-mes- other capital raising. Tier 1 capital—have been as asset sales. That is impor- tors lower returns than ri- Tuesday. That was below its
sages app and give Viacom Co-chief John Cryan says worried as equity investors. tant, as the bank needs to vals, the last thing it needs level last year when a rumor
exclusive rights to sell ad- the bank doesn’t need to And why the German lender sell more of these bonds. is more equity. Really, it circulated that the company
vertising on its behalf. raise equity. But his message issued a statement late To be fair, Deutsche Bank needs fewer rubbish assets. was attracting merger inter-
Viacom chief Philippe actually is that it needs no Monday on its ability to keep has front-loaded many re- But the path to better est. Smaller rivals such as
Dauman cited the deal as a more equity to back its strat- paying coupons. structuring costs, including capital ratios and returns Workday and Spunk also
sign the company is innovat- egy. The trouble is that any It said it would have more €1 billion of charges in 2015. looks treacherous. Any have been hit hard.
ing as it seeks to reach unplanned losses from law- than enough to pay the €350 It also has planned for al- breach of common-equity re- Trading at more than 60
young people and boost ad- suits, fines, restructuring or million ($392 million) on ex- most €8 billion in legal quirements along the way times forward earnings,
vertising from nontraditional defaults would likely mean a isting bonds this year and costs: €5.5 billion taken and would cut what it is allowed Salesforce still isn’t cheap.
sources. Advertising revenue, capital call, or at least a stop next. Deutsche Bank added another €2.2 billion deemed to distribute in dividends, But John DiFucci of Jefferies
which fell 4%, exceeded ex- on coupons to some bonds that in 2017 its available likely but not yet charged. bonuses and coupons on ju- & Co. upgraded the stock to
pectations and represented as well as on dividends. funds should be more than This is a lot, but still may nior bonds. This is a high- “hold” on Tuesday.
an improvement over the This is why investors in 7.5 times this coupon bill, fall short. More recent prob- wire act that will continue to He had rated the shares
previous quarter. Deutsche Bank’s most junior before accounting for this lems, related to money-laun- strain investors’ nerves. “underperform” since late
Investors instead zeroed bonds—known as additional year’s earnings and expected dering probes in Russia, for —Paul J. Davies 2014, citing the stock’s lofty
in on weakness in affiliate valuation and the high costs
fees. Domestic affiliate reve- of driving the company’s
nues were flat in the Decem-
ber quarter, while interna-
tional ones fell 6%, driven by
Global Recession: What This Indicator Says growth. Mr. DiFucci says con-
cerns remain about slowing
new-subscription growth. But
unfavorable foreign-exchange Ten years ago, few people Rates for leasing some ves- is a cyclical business in its he noted that his research in-
rates. Viacom said it ex- could have told you the dif- Far From Shipshape sels are less than half of own right, prone to blind op- dicates the company’s busi-
pected low- to mid-single- ference between Baltic Dry Baltic Dry Index their variable costs. timism and blind panic ness execution was strong in
digit percentage growth in and Canada Dry. Now, in cer- It is a bad time to be in within the stretch of just a the fiscal fourth quarter that
affiliate fees in the current tain circles at least, the for- 15000 the business of “shipping few years. Don’t get carried ended in January.
fiscal year, down from previ- mer is cited as a barometer dirt across the world,” as away by its gyrations. This year’s selloff has put
ous guidance of high-single- for the global economy, 10000 one industry executive puts On the other hand, don’t Salesforce’s enterprise value
digit growth. That implies which has gone from bubbly it. That is awful news for be too sanguine either: Trade at about 4.8 times Mr. Di-
some impact from AT&T’s re- and sweet to flat and bitter 5000 shareholders of and lenders really is slowing. Bellwethers Fucci’s forward subscription-
cent purchase of DirecTV in the past several months. to shipping companies such such as giant port operator revenue estimate—that is its
and possibly from the com- The Baltic Dry Index fell as DryShips Inc., Hyundai DP World to the Association lowest such level since the fi-
0
pany’s ongoing negotiations below 300 for the first time Merchant Marine and Jin- of American Railroads and nancial crisis.
with Dish Network. ever on Monday, down 75% 2006 ’08 ’10 ’12 ’14 ’16 hui Shipping, all trading at purchasing-manager indexes That wasn’t enough to
At only six times forward since last August. That is Source: FactSet distressed levels. world-wide point to deceler- turn a bear into an outright
earnings, Viacom already setting alarm bells ringing, But it isn’t an indication ating volume. That bodes bull. But Salesforce stock,
trades at a huge discount to but not necessarily in all the as iron ore, wheat and coal of global recession, despite poorly for growth, but it is which rose more than 6%
media peers. Mr. Dauman right places. Rather than a that have sunk in price. the fact that the Baltic Dry way too early to set alarms Tuesday, was happy to at
needs more than a deal with measure of global trade, per China’s shrunken appetite is did collapse during the last ringing outside the transport least hear some of the growl-
a hot startup to close the gap. se, it is merely a gauge of part of the reason, but so is two economic downturns. industry. ing grow quiet.
—Miriam Gottfried rates to ship dry bulk such a building boom in ships. In other words, shipping —Spencer Jakab

Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
BANKRATE.COM® MMA, Savings and CDs
Net YTD TotIntBdIdxAdm 21.48 ... 1.9 STAR 21.58 -0.06 -7.3 BalInst 27.64 -0.03 -5.4
Explanatory Notes Data provided by Fund NAV Chg % Ret TotIntlAdmIdx r 21.69 -0.26-10.5 STIGrade DevMktsIndInst 10.52 -0.14-11.1 Average Yields of Major Banks Tuesday, February 9, 2016
10.61 ... 0.7
Top 250 mutual-funds listings for Nasdaq-published share classes with MFS Funds Class A ExtndInst 53.96 -0.31-15.1
net assets of at least $500 million each. NAV is net asset value. TotStAdml 45.59 -0.06-10.2 TgtRe2015 13.64 -0.04 -4.1 Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
ValueA p 30.52 -0.03 -6.9 TxMIn r 10.51 -0.13-11.1 TgtRe2020 25.71 -0.08 -5.3 GrwthInst 48.40 ...-11.6
Percentage performance figures are total returns, assuming reinvestment
MFS Funds Class I ValAdml 29.28 -0.04 -8.0 TgtRe2025 14.64 -0.06 -6.3 InPrSeIn 10.41 -0.01 1.4 National average
of all distributions and after subtracting annual expenses. Figures don’t
reflect sales charges (“loads”) or redemption fees. NET CHG is change in ValueI 30.69 -0.02 -6.9 WdsrllAdml 53.64 -0.13 -9.8 TgtRe2030 25.73 -0.10 -7.2 InstIdx 169.47 -0.08 -9.2 Savings 0.09 0.07 0.07 0.09 0.14 0.24 0.37 0.38 0.79
NAV from previous trading day. YTD%RET is year-to-date return. 3-YR MFS Funds Instl WellsIAdml 58.92 -0.06 -0.8 TgtRe2035 15.47 -0.07 -8.1 InstPlus 169.49 -0.07 -9.2 Jumbos 0.19 0.07 0.08 0.10 0.15 0.27 0.42 0.42 0.83
%RET is trailing three-year return annualized. IntlEq 18.39 -0.12-10.6 InstTStPlus 41.26 -0.05-10.2 Weekly change
WelltnAdml 60.39 -0.09 -5.0 TgtRe2040 25.90 -0.12 -9.0
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. Mutual Series WndsrAdml 55.61 -0.24-13.9 TgtRe2045 16.16 -0.08 -9.1 MidCpInst 28.74 -0.05-12.5 Savings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01
j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. GlbDiscA 25.62 -0.20-11.2 VANGUARD FDS TgtRe2050 25.89 -0.12 -9.1 MidCpIstPl 141.74 -0.24-12.5 Jumbos 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 -0.01
p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock GlbDiscz 26.06 -0.21-11.2 SmCapInst 45.99 -0.25-13.3
split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. DivdGro 21.15 +0.11 -5.7 TgtRetInc 12.20 -0.02 -2.0
Oakmark Funds Cl I STIGradeInst 10.61 ... 0.7
x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to GNMA 10.78 +0.01 1.4 TotIntBdIxInv 10.74 ... 1.9
incomplete price, performance or cost data. NE-Not released by Lipper; data
under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
EqtyInc
Oakmark
26.50
55.42
-0.12 -7.2
-0.31-11.8
HlthCare r 190.65 +0.62-13.5 WellsI 24.32 -0.02 -0.8
TotBdInst
TotBdInstPl
10.83
10.83
-0.01 2.1
-0.01 2.1
Consumer Savings Rates
IntlVal 27.69 -0.39-10.9 Welltn 34.96 -0.06 -5.0 TotIntBdIdxInst 32.23 ... 1.9
OakmrkInt 18.04 -0.53-15.5 Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed-
Tuesday, February 9, 2016 INSTTRF2025 17.89 -0.06 -6.2 WndsrII 30.23 -0.07 -9.8 TotIntlInstIdx r 86.73 -1.05-10.5
Old Westbury Fds LifeCon 17.31 -0.04 -3.0 VANGUARD INDEX FDS erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
Net YTD Net YTD
LrgCpStr 11.30 -0.08 -9.4 TotItlInstPlId r 86.75 -1.05-10.5 of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
Fund NAV Chg % Ret Fund NAV Chg % Ret LifeGro 25.10 -0.11 -7.9 500 171.14 -0.08 -9.2 TotStInst 45.60 -0.06-10.2
Oppenheimer Y LifeMod 21.79 -0.07 -5.5 ExtndIstPl 133.16 -0.77-15.1 not an indication of financial strength or weakness. Information is believed to be reliable, but not
American Century Inv ContraK 86.47 +0.27-11.9 DevMktY 26.83 -0.27-10.5 VirtusFunds Cl I
Primcp r 87.40 +0.01-12.3 TotIntl 12.97 -0.15-10.5 guaranteed.
Ultra 30.60 -0.01-12.6 CpInc r 8.49 -0.04 -6.8 IntGrowY 32.44 -0.16 -9.6 EmMktI 8.48 -0.05 -5.4
American Funds Cl A DivIntl 30.73 -0.21-12.4 Parnassus Fds
PrmcpCor 18.53 +0.01-11.0 TotSt 45.57 -0.06-10.3 Western Asset High yield savings
AmcpA p 23.19 -0.08-10.6 DivIntlK r 30.67 -0.21-12.3 SelValu r 22.50 ...-13.0 VANGUARD INSTL FDS CorePlusBdI 11.39 -0.03 ...
ParnEqFd 34.19 +0.07 -7.5 Bank/rank Yield Bank/rank Yield
AMutlA p 32.07 -0.05 -5.3 GroCo 112.36 +0.13-17.7 PIMCO Fds Instl Phone number Minimum (%) Phone number Minimum (%)
BalA p 22.65 -0.03 -5.0 GrowCoK 112.24 +0.13-17.7 AllAsset NA ... NA
BondA p
CapIBA p
12.74
53.68
-0.02 1.4
-0.27 -3.9
InvGrBd
LowP r
11.10
43.36
-0.02 0.9
-0.14 -9.2
ShortT
TotRt
NA
10.08
... NA
-0.02 0.4
Borrowing Benchmarks | WSJ.com/bonds Money market and savings account
Silvergate Bank /4 $1,000 1.11
Six-month CD
AloStar Bank of Commerce /5 $1,000 1.01
CapWGrA 39.21 -0.27 -9.6 LowPriStkK r 43.32 -0.15 -9.2 PIMCO Funds A (877) 391-9381 (877) 751-0294
EupacA p
FdInvA p
39.94
45.67
-0.42-12.0
-0.15 -9.9
MagIn
OTC
78.05
64.49
+0.15-12.7
-0.37-22.7
TotRetA
PIMCO Funds D
10.08 -0.02 0.4 Money Rates February 9, 2016 iGObanking.com /3
(877) 412-1312
$25,000 1.10 EverBank /3
(877) 280-5143
$1,500 1.01

GwthA p 35.70 -0.16-13.5 Puritn 18.67 -0.01 -8.2 IncomeFd NA ... NA GE Capital Bank /4 $0 1.05 First Internet Bank of Indiana /4 $1,000 0.90
HI TrA p 8.87 -0.06 -4.4 SrsInvGrdF 11.10 -0.02 0.9
Key annual interest rates paid to borrow or lend money in U.S. and
PIMCO Funds Instl (866) 576-7053 (877) 412-9564
ICAA p 30.95 -0.17 -7.3 StratInc 9.93 -0.02 -1.8 IncomeFd NA ... NA international markets. Rates below are a guide to general levels but
IncoA p 19.27 -0.03 -4.7 TotalBond 10.26 -0.02 0.3 PIMCO Funds P don’t always represent actual transactions. One-month CD One-year CD
N PerA p 31.38 -0.19-12.9 Fidelity Selects IncomeP NA ... NA Lone Star Bank /3 $1,000 0.15 AloStar Bank of Commerce /5 $1,000 1.26
NEcoA p 30.80 -0.11-14.3 Biotech r 153.57 -0.58-34.9 Price Funds Inflation Other short-term rates (877) 381-3269 (877) 751-0294
NwWrldA 44.75 -0.39-10.5 Health r 173.70 +0.96-16.6 BlChip 60.66 +0.27-16.2 Dec. index Chg From (%) Week 52-Week VirtualBank /4 $10,000 0.15 My e-BAnC by BAC Florida Bank /4 $1,500 1.26
SmCpA p 37.21 -0.32-14.7 Fidelity Spartan CapApp 23.59 +0.02 -5.8 level Nov. '15 Dec. '14 Latest ago high low (877) 344-5618 (877) 878-8048
TxExA p 13.22 ... 1.3 500IdxInv 65.20 -0.03 -9.2 EmMktS 25.69 -0.23 -9.9 AloStar Bank of Commerce /5 $1,000 0.10 iGObanking.com /3 $1,000 1.25
WshA p 35.56 -0.02 -7.5 500IndInst 65.21 -0.03 -9.2 EqInc 26.03 -0.11 -8.5 U.S. consumer price index Call money (877) 751-0294 (877) 412-1312
AMG Managers Funds Fidelity Spartan Adv EqIndex 49.89 -0.02 -9.2 –0.34 0.7 2.25 2.25 2.25 2.00
All items 236.525 Two-month CD Two-year CD
YacktmanFd 19.94 -0.12 -4.5 500IdxAd 65.21 -0.03 -9.2 Growth 44.83 +0.17-16.5 Core 243.779 –0.12 2.1 Commercial paper Lone Star Bank /3 $1,000 0.15 First Internet Bank of Indiana /4 $1,000 1.51
AQR Funds ExtMktAd r 42.61 -0.25-15.1 HelSci 56.18 +0.27-18.4
MgdFutStrI NA ... NA IntAd r 31.87 -0.36-11.3 HiYield 5.92 -0.02 -3.5 30 to 270 days n.q. ... ... ... (877) 381-3269 (877) 412-9564
Artisan Funds TotMktAd r 52.63 -0.07-10.3 InstlCapG 23.87 +0.07-17.4 International rates VirtualBank /4 $10,000 0.15 Silvergate Bank /4 $25,000 1.47
Intl Inv 25.38 -0.08-11.5 First Eagle Funds
Commercial paper (AA financial) (877) 344-5618 (877) 391-9381
Intl G&I 11.74 -0.12-10.2 Week 52-Week
BlackRock Funds A GlbA 48.71 -0.25 -5.1 IntlStk 13.60 -0.09-11.0 90 days 0.56 0.53 0.64 0.06 Applied Bank /5 $0 0.05 Nationwide Bank /4 $500 1.46
Latest ago High Low
GlblAlloc p 16.67 -0.11 -6.6 FMI Funds MCapGro 63.17 +0.24-13.8 Euro commercial paper (877) 622-7973 (877) 351-8438
BlackRock Funds C LgCap 17.35 -0.03 -6.8 MCapVal 23.03 -0.29 -7.7 Prime rates 30 day n.q. n.q. -0.02 -0.12 Three-month CD Five-year CD
GlblAlloc t 15.18 -0.10 -6.6 FPA Funds N Horiz 35.38 -0.15-16.7
BlackRock Funds Inst FPACres 28.42 -0.13 -8.5 N Inc 9.45 -0.01 1.2 U.S. 3.50 3.50 3.50 3.25 Two month n.q. n.q. -0.01 -0.09 EverBank /3 $1,500 0.55 First Internet Bank of Indiana /4 $1,000 2.27
EqtyDivd 19.29 +0.02 -8.1 FrankTemp/Frank Adv OverS SF r 8.01 -0.09-10.9 Canada 2.70 2.70 2.85 2.70 Three month n.q. n.q. 0.01 -0.08 (877) 280-5143 (877) 412-9564
GlblAlloc 16.77 -0.10 -6.5 IncomeAdv 1.93 -0.01 -6.3 R2015 12.95 -0.03 -5.3 Japan 1.475 1.475 1.475 1.475 Four month n.q. n.q. 0.02 0.00 California First National Bank /5 $5,000 0.55 Barclays /5 $0 2.25
HiYldBd 6.82 -0.04 -3.8 FrankTemp/Franklin A R2020 18.38 -0.05 -6.7 Five month n.q. n.q. 0.03 0.01 (877) 880-1647 (877) 429-6548
StratIncOpptyIns 9.64 -0.01 -1.1 CA TF A p 7.58 ... 1.4 R2025 13.80 -0.04 -7.7 Policy Rates Six month n.q. n.q. 0.04 0.02 First Internet Bank of Indiana /4 $1,000 0.50 Synchrony Bank /5 $25,000 2.25
Davis Funds A Fed TF A p 12.47 ... 1.4 R2030 19.92 -0.06 -8.7 Euro zone 0.05 0.05 0.05 0.05 (877) 412-9564 (877) 412-8426
0.50 0.50 0.50
Libor
NYVen A 26.24 -0.14-15.1 Growth A p 65.97 +0.20-10.1 R2035 14.29 -0.04 -9.5 Switzerland 0.50
Dimensional Fds IncomeA p 1.94 -0.02 -6.7 R2040 20.28 -0.06-10.2 Britain 0.50 0.50 0.50 0.50 One month 0.42850 0.42700 0.43060 0.17100 High yield jumbos - Minimum is $100,000
5GlbFxdInc 11.06 -0.01 1.5 RisDv A p 45.17 ... -5.4 SmCapStk 33.61 -0.20-13.0 Australia 2.00 2.00 2.25 2.00 Three month 0.62050 0.61860 0.62430 0.25620
EmgMktVa 18.74 -0.12 -8.1 FrankTemp/Franklin C Value 28.25 +0.05 -9.6 Six month 0.86590 0.86500 0.87060 0.37680 Money market and savings account Six-month CD
EmMktCorEq 14.67 -0.09 -6.9 Income C t 1.97 -0.01 -6.3 Schwab Funds Overnight repurchase One year 1.13055 1.14025 1.17800 0.66360 Silvergate Bank /4 1.11 AloStar Bank of Commerce /5 1.01
IntlCoreEq 10.09 -0.13-11.4 FrankTemp/Temp A S&P Sel 28.66 -0.01 -9.2 U.S. 0.48 0.45 0.51 0.07 (877) 391-9381 (877) 751-0294
IntSmCo 15.29 -0.18-11.2 GlBond A p 10.95 -0.09 -5.2 TIAA/CREF Funds
Euro Libor
ableBanking,adivisionofNortheastBank/4 1.00 EverBank /3 1.01
IntSmVa 16.38 -0.25-12.3 Growth A p 19.01 -0.22-13.2 EqIdxInst 13.53 -0.02-10.2 One month -0.244 -0.233 -0.004 -0.244
Dimensional Fds FrankTemp/Temp Adv Tweedy Browne Fds
U.S. government rates Three month -0.193 -0.181 0.028 -0.193
(877) 478-0834 (877) 280-5143
EH National Bank /2 0.86 My e-BAnC by BAC Florida Bank /4 0.90
US CoreEq1 15.41 -0.02-10.3 GlBondAdv p 10.91 -0.09 -5.1 GblValue 22.24 -0.21 -9.1 Discount Six month -0.118 -0.109 0.093 -0.118
(877) 343-7302 (877) 878-8048
US CoreEq2 14.63 -0.03-10.5 GMO Trust Class IV VANGUARD ADMIRAL 1.00 1.00 1.00 0.75 One year -0.010 0.000 0.233 -0.010
US Small 25.07 -0.09-11.6 IntlEq 17.94 -0.20-10.7 500Adml 171.16 -0.08 -9.2 One-month CD One-year CD
US SmCpVal 26.71 -0.21-12.4 Harbor Funds BalAdml 27.64 -0.03 -5.4 Federal funds Euro interbank offered rate (Euribor) USAA /5 0.22 My e-BAnC by BAC Florida Bank /4 1.30
USLgVa 27.43 -0.06-11.0 CapApInst 50.38 +0.09-17.2 CAITAdml 12.02 ... 1.7 0.4000 0.4000 0.0600 One month -0.237 -0.231 0.002 -0.237 (877) 344-2397 (877) 878-8048
Effective rate 0.3900
Dodge & Cox IntlInst r 52.96 -0.50-10.9 CapOpAdml r 100.81 +0.13-15.0 Three month -0.171 -0.161 0.050 -0.171 VirtualBank /4 0.15 AloStar Bank of Commerce /5 1.26
High 0.5600 0.5600 0.5900 0.3100
Balanced 86.16 -0.41 -8.7 Invesco Funds A EMAdmr 24.77 -0.24 -9.4 Six month -0.109 -0.094 0.130 -0.109 (877) 344-5618 (877) 751-0294
Income 13.23 -0.03 -0.5 EqIncA 8.80 -0.03 -8.5
Low 0.3500 0.3500 0.3500 0.0100
EqIncAdml 58.33 -0.04 -5.8 One year -0.004 0.009 0.262 -0.005 AloStar Bank of Commerce /5 0.10 Synchrony Bank /5 1.25
Intl Stk 30.24 -0.74-17.1 John Hancock Class 1 ExplrAdml 62.96 -0.21-15.8 Bid 0.3600 0.3700 0.5500 0.0300
Offer 0.5000 0.5000 0.5600 0.0500 (877) 751-0294 (877) 412-8426
Stock 142.27 -0.76-12.6 LSBalncd 13.14 -0.04 -7.7 ExtndAdml 53.96 -0.31-15.1 Value 52-Week
DoubleLine Funds LSGwth 13.34 -0.05-10.0 GNMAAdml 10.78 +0.01 1.4
Treasury bill auction
Latest Traded High Low Two-month CD Two-year CD
TotRetBdI NA ... NA John Hancock Instl GrwthAdml 48.40 ...-11.6 VirtualBank /4 0.15 Nationwide Bank /4 1.51
4 weeks 0.265 0.270 0.295 0.000 DTCC GCF Repo Index
TotRetBdN NA ... NA DispValMCI 16.63 -0.01-13.2 HlthCareAdml r 80.42 +0.26-13.5 (877) 344-5618 (877) 351-8438
Fidelity Advisor A JPMorgan Inst Class HYCorAdml r 5.32 -0.02 -3.4 13 weeks 0.315 0.350 0.350 0.000 Treasury 0.491 93.750 0.639 0.059
Applied Bank /5 0.05 First Internet Bank of Indiana /4 1.51
NwInsghtA p 22.87 +0.01-12.5 MdCpVal 30.84 -0.13 -9.2 InfProAd 25.56 -0.03 1.4 26 weeks 0.420 0.465 0.585 0.065 MBS 0.501 123.850 0.705 0.075
(877) 622-7973 (877) 412-9564
Fidelity Advisor I JPMorgan R Class IntlGrAdml 57.62 -0.45-14.1 Open Implied Citizens Trust Bank /3 0.05 CIT Bank /5 1.47
NwInsghtI 23.30 +0.01-12.5 CoreBond 11.77 -0.01 2.0 ITBondAdml 11.54 ... 2.8 Secondary market Settle Change Interest Rate (877) 412-4382 (877) 344-7758
Fidelity Freedom JPMorgan Select Cls ITIGradeAdml 9.75 -0.01 1.5
FF2020 13.46 -0.05 -7.4 CoreBond 11.76 ... 2.1 LTGradeAdml 10.11 -0.02 2.6 Fannie Mae DTCC GCF Repo Index Futures Three-month CD Five-year CD
FF2025 11.41 -0.04 -8.3 USLgCpCorPls 23.10 -0.01-13.8 MidCpAdml 130.10 -0.22-12.5 30-year mortgage yields Treasury Feb 99.515 unch. 6394 0.485 EverBank /3 0.55 First Internet Bank of Indiana /4 2.27
FF2030 13.70 -0.05 -9.9 Lazard Instl MorgAdml 67.21 +0.11-12.9 30 days 3.162 3.270 3.750 3.162 Treasury Mar 99.480 -0.005 4951 0.520 (877) 280-5143 (877) 412-9564
FreedomK2020 12.53 -0.04 -7.3 EmgMktEq 12.66 -0.13 -5.8 MuHYAdml 11.45 ... 1.5 60 days 3.197 3.302 3.788 3.197 Treasury Apr 99.495 -0.005 1756 0.505 First Internet Bank of Indiana /4 0.50 CIT Bank /5 2.25
FreedomK2025 12.95 -0.04 -8.2 Loomis Sayles Fds MuIntAdml 14.47 +0.01 1.8 (877) 412-9564 (877) 344-7758
FreedomK2030 12.91 -0.05 -9.9 LSBondI 12.35 -0.04 -4.0 MuLTAdml 11.91 +0.01 1.8 AloStar Bank of Commerce /5 0.40 Synchrony Bank /5 2.25
Notes on data:
FreedomK2035 13.14 -0.05-11.0 Lord Abbett A MuLtdAdml 11.12 +0.01 1.1 (877) 751-0294 (877) 412-8426
FreedomK2040 13.17 -0.05-11.0 ShtDurIncmA p 4.28 ... -0.3 MuShtAdml 15.85 ... 0.4 U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S.
prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
Fidelity Invest Lord Abbett F PrmcpAdml r 90.54 +0.01-12.3 Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF
AMgr50% 15.11 -0.04 -5.8 ShtDurIncm 4.27 -0.01 -0.5 REITAdml r 101.98 -1.95 -9.7 Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable are based on method of compounding and rate stated for the lowest required opening deposit to
Balanc 19.54 ... -7.9 Metropolitan West SmCapAdml 45.99 -0.26-13.3 CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
BalancedK 19.54 ... -7.9 TotRetBd 10.76 -0.01 1.5 STBondAdml 10.54 ... 1.2 NYSE Liffe US. month, three (3) of which may be checks. Rates are subject to change.
BluCh 57.90 +0.07-16.1 TotRetBdI 10.76 -0.01 1.5 STIGradeAdml 10.61 ... 0.7 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Contra 86.52 +0.27-11.9 TRBdPlan 10.13 -0.01 1.5 TotBdAdml 10.83 -0.01 2.1 General Electric Capital Corp.; Tullett Prebon Information, Ltd. Internet: www.bankrate.com
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Office Drones The Blazers’

Mom Brigade
A beekeeper on skyscrapers WHAT’S IN YOUR BAG? | D2 SPORTS | D6

© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Wednesday, February 10, 2016 | D1

Do Laundry Like a Man We Want Our

Children to
Seeing ‘fundamental shift,’
marketers adapt washers
ADVENTURES OF THE LAUNDRY BROS Code, Even
and soap formulas for
those who won’t sort
If We Can’t
BY SUE SHELLENBARGER
BY ELLEN BYRON
Many parents want their chil-
An epic change is happening in- dren to learn to code. Tech leaders
side American homes: Men are do- and educators are pushing schools
ing more laundry. to add more computer-science
Detergent and washing machine classes, and families often see pro-
makers are taking aim at this gramming as an essential skill for
growing group. While women still the future.
report doing most of the clothes But unlike reading to your chil-
washing, men now share more of dren or teaching them to count,
the load. preparing children to
Tide is trying new scents it WORK & code can feel daunt-
considers more masculine. Whirl- FAMILY ing and unnatural.
pool added a cycle to keep colors Many parents think
from mixing because men don’t they can’t help be-
sort the laundry. Hero Clean deter- cause they don’t know math or
gent is geared for days-old stains programming themselves.
because men tend to let dirty Increasingly, though, parents
clothes sit around. Doing laundry, who have never written a line of
marketers say, involves more deci- code are finding ways to teach
sions than many other household ‘You gotta pre-treat that, bro.’ their children basic programming
chores and men and women do it skills. Some tap websites, gaming
differently. apps or online puzzles using visual
From consumer researcher Min- programming languages designed
tel’s annual laundry survey of ap- for children. Others focus on teach-
proximately 2,000 consumers, split ing the kind of thinking that cod-
roughly evenly between women ing requires. For instance, even
and men, researchers found that young children can learn how to
the jump is particularly stark with break tasks into steps and perform
men, age 18 to 34, with 67% saying them in order—a programming
they were “mainly responsible for concept called sequencing—or to
the laundry” last year, up from repeat a series of steps until a task
44% in 2013. Nearly 60% of men, is complete, a concept called loops.
age 35 to 54, are doing laundry. Laura Reidy says she’s scared of
Among men aged 55 and older, just computers. “I tell my kids all the
35% claimed laundry responsibility time: I don’t want them to be like
last year, up one percentage point me,” says Ms. Reidy, of White
since 2013. Plains, N.Y. She introduced each of
Procter & Gamble Co., the big- her three children to programming
gest detergent maker in the U.S., by age 6. She and her husband,
recently stopped calling the Tide Sean, sat at the kitchen table with
consumer “she” in its internal dis- their son Sean Thomas, who is now
cussions, upending a some 70-year 10, while he made mazes, anima-
practice. “Now, as habits change, tions and birthday cards using
we talk about him and her,” says Scratch, a visual programming lan-
Sundar Raman, P&G’s vice presi- guage developed at the Massachu-
dent of North American fabric setts Institute of Technology.
care, which includes the Tide, Sean’s younger brother, Jack, 8,
Bounce, Gain and Downy brands. makes animations and games on
“It’s a fundamental shift in how ‘Dude, those jeans should go on delicate.’ the Scratch website and Code.org,
we’re approaching the business.” a site offered by a nonprofit organ-
To target men, P&G has consid- ization that promotes coding edu-
ered a Tide for Men variety, but cation. Mrs. Reidy’s youngest child,
ultimately decided to make deter- Isabella, started using Scratch at
gents like Tide Plus Febreze Sport age 4. Ms. Reidy was surprised re-
in fragrances including “Victory cently to see that Isabella, now 6,
Fresh.” Bounce for Men was intro- is creating birthday cards and
duced in 2014. other projects on her own. “It hap-
In ads, P&G deliberately por- pened so naturally and quickly that
trays men as confident launderers. I didn’t even notice her learning,”
P&G is running an online video Ms. Reidy says.
campaign for Tide pods featuring Visual-programming languages
NFL stars and other athletes who such as Scratch, for children 8 and
are on the short side along with a up, and Scratch Jr. for children
KYLE T. WEBSTER FOR THE WALL STREET JOURNAL (3)

“small but powerful” advertising ages 5 through 7, use tiles or

slogan. blocks rather than text. Children
Many men have little choice. snap blocks together into a series
More men are single — 47% of the of steps to direct animations or
adult male population in the U.S., games—teaching sequencing. They
according to the U.S. Census Bu- learn to repeat steps by nesting
reau. Married men now do 42% of sets of blocks inside a command
all housework, more than double calling for a specified number of
the amount they did 30 years ago, repetitions. Children also learn an-
Mr. Raman says. other programming concept, using
The Sun Products Corp., maker conditionals, through the game.
of All detergent and Snuggle fabric For example, they might instruct
softener, about three years ago an animated figure, “If the next
started including male consumers space is open, move forward; if
Please see LAUNDRY page D2 ‘Sort your colors, man.’ not, turn right.”
Learning programming con-
Please see CODING page D3

The Lure of 30-Day Challenges: Better Abs and More

BY RACHEL BACHMAN ple to chase goals big and small,
from cutting out soda to writing a
Lauren Laitin kept up her novel. More than 200 smartphone
pledge to do some form of exercise apps for Apple’s iOS operating sys-
every day for a month—even when tem have “30 day challenge” in the
a Jan. 23 blizzard dumped snow title, 10 times the number avail-
on the Washington, D.C., area, able in 2014, according to App An-
where she lives. Her gym was nie, an analytics and market-data
closed, so she tugged on a pair of company. Internet searches for “30
boots and forced herself out the day challenge” have climbed 140%
door for a short run. since 2013, according to Google.
“I might not have made it 2 Gyms and yoga studios offer them
miles, because it was slippery and as a way to win customers, hoping
snowing,” recalls Ms. Laitin, prin- that a 30-day stint will turn into a
cipal of executive coaching firm habit.
Parachute Coaching. “But I was so Several people who have tried
proud of myself that I did it.” or designed 30-day exercise chal-
The 30-day exercise challenge lenges say they were inspired by a
is increasingly popular, especially 2011 TED Talk by Google software
as an alternative to New Year’s engineer Matt Cutts called “Try
resolutions, which often fail this something new for 30 days.” It has
a few of the physical challenges
helped transform him from mostly
sedentary to a regular exerciser.
In 2009, Mr. Cutts challenged
himself to 30 days of bicycling to
his job in Mountain View, Calif.,
even though he “hated biking to
work,” he says. “And by the end of
the month, I pretty much loved
biking to work and switched to
biking to work most of the time.”
Most days, he also takes 10,000
steps as counted by a fitness
tracker, another 30-day challenge
from 2009.
Chris Alldredge, a 33-year-old
former high-school football player
in Weaver, Ala., was overweight
and unhappy five years ago when
he found a 30-day yoga challenge
online featuring instructor
KEVIN GREGOR

time of year. The pitch is to stick been viewed more than 7 million Dashama Gordon.
with a commitment for a month, times. Mr. Alldredge, a chemical lab
whether to reach a specific bench- Some of Mr. Cutts’s 30-day technician, says following along at
mark, mix up a routine or try to challenges were one-off experi- home with the challenge’s short
establish an exercise habit. ments, including not watching TV videos helped him establish a daily Bikram Yoga NYC offers a 30-day challenge. If participants complete a class
Thirty-day challenges push peo- and cutting out sugar. But he says Please see THIRTY page D2 every day for a month, they get guest passes and discounts.
 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
D2 | Wednesday, February 10, 2016 NY THE WALL STREET JOURNAL.

HOME & DIGITAL

Hives With a View: Office Buildings Welcome Bees BY HILARY POTKEWITZ with hive issues, take research samples eycomb so he can examine it.
and meet with potential clients. The He usually brings a bottle of seltzer.
If you’ve ever wondered where bees company has a nationwide staff of 39. “Everything is held together with bees-
go for the winter, wonder no more. He always carries two duffel bags. wax and honey, and it gets all over,” he
“They stay inside and cuddle and eat One holds his beekeeping gear, which says. Sparkling water is a nontoxic way
honey,” says bee scientist Noah Wilson- includes protective coveralls made of to clean up the mess.
Rich. lightweight nylon and a zip-on veil that On beekeeping days, Mr. Wilson-Rich
Mr. Wilson-Rich, 33, runs Best Bees covers his head and neck. His gloves, avoids eating apples, bananas and al-
Co., an urban-beekeeping venture based made of leather, mesh and canvas, ex- monds because the lingering scent can
in Boston that installs and manages tend to the elbow, and his pants have stimulate bees.
honeybee hives on buildings around the stirrups that tuck into his boots. In his second duffel bag, Mr. Wilson-
country. He says he gets stung “about six or Rich carries marketing materials for his
Bees have their own version of cen- seven times a week, and for some rea- business and copies of his 2014 book,
tral heating for win- son, it’s always on my ankles.” Although “The Bee: A Natural History,” about the
WHAT’S IN ter: Thousands of he isn’t allergic, he always has hydro- deep-rooted connection between people
YOUR BAG? worker bees flex cortisone cream and an EpiPen in case and bees. He is currently on a speaking
their wing muscles, tour, combining client visits with sched-
vibrating as a group uled talks about beekeeping in urban
around the queen. All that fuzzy friction environments.
raises their collective temperature to a And he is on a mission to save hon-
balmy 90 degrees Fahrenheit. “The hive eybees. More than 130 U.S. crops, in-
will be like Miami on the inside, even if cluding apples, almonds and oranges,
it’s Boston on the outside,” he says. A rely on bees for pollination, worth about
Urban beekeeper Noah Wilson-Rich, above, tends a hive on the roof of Boston’s healthy hive can house as many as $15 billion to the economy, according to
Taj Hotel. Among the tools he uses, clockwise from left: a hive tool to pry out 80,000 bees. the U.S. Department of Agriculture.
frames; test tubes for research samples; a smoker and lighter; seltzer for Mr. Wilson-Rich, who holds a Ph.D. in For the past decade, honeybees
cleaning up; bee brush; nylon straps for securing hives and sting treatments. biology, has been preaching the gospel have been dying at an alarming rate—
of urban beekeeping to commercial- about 30% of hives collapse each year,
property owners, hotels, universities and the USDA reports. Scientists are still
audiences at TED conferences. “A 2-foot trying to figure out the cause, with the-
by 3-foot space is enough for a beehive, ories ranging from pesticides to dis-
and the bees will fly for miles to find ease, stress and lack of nutrition.
flowers,” pollinating fruit trees and veg- Mr. Wilson-Rich is researching ways
etable gardens along the way, he says. other people get stung. to improve bee health, so he also car-
So far Best Bees has installed about Before opening a hive, he calms the ries test tubes to collect samples. He
SIMON SIMARD FOR THE WALL STREET JOURNAL (3)

800 hives on rooftops in nine cities, usu- bees using a smoker. He fills its small believes urban beekeeping is part of
ally through contracts with the buildings’ metal drum with leaves, grass or wood the solution. “Anybody who eats fruits
owners. Hives are humming atop the chips, lights a fire then blows out the and veggies needs bees. We have to
Wells Fargo Center in Denver and the flame. With a billow he pumps smoke protect our pollinators!” he says.
Columbia Center in Seattle, both owned into the hive’s entrance. The smoke in- The beekeeper has two hives on the
by client Beacon Capital Partners; on the terferes with the bees’ antennae recep- porch of his Dorchester, Mass., home.
Prudential Center in Boston, owned by tors, blocking communication, he says. “We use them as cocktail tables,” he
Boston Properties; and above Airbnb’s He carries a set of hive tools—long says. Hives have only one entrance, so
headquarters in San Francisco. Best Bees metal spatulas with a hook at one it’s easy to direct honeybees to a de-
also offers its clients custom bottling end—used to pry open the hive’s lid, lift sired flight path, he says. “The trick
and labeling for honey. honeycomb frames or cut out diseased with urban beekeeping is to face the
Mr. Wilson-Rich, who founded Best sections. He uses a bee brush to gently entrance to the wall, so the bees fly up
Bees in 2010, travels regularly to help wipe live bees off the surface of a hon- and away from neighbors.”

THIRTY
lenges might be driven partly by
people’s attraction to markers
such as a new week or a holiday
for a fresh start. People are 14%
Continued from the prior page more likely to visit a gym at the
practice in a place with few yoga start of a new month, according to
studios at the time. “No guys a 2014 paper published in the jour-
around here would ever dare ad- nal Management Science.
mit to doing yoga,” he says. Such markers “make people feel
Ms. Gordon posted her first 30- disconnected from their past im-
day challenge on YouTube in 2008, perfections,” and spur them to
spawning a flood of other online take a big-picture view and pursue
versions. She trademarked “30 day aspirations, the paper says. Its
to seven rest days built into the
month.
One of his most popular apps, Many 30-day YOGA
the 30-day ab challenge, draws fitness
many repeat users from month to challenges
month, Mr. Jozic says. But it has a focus on a
relatively low completion rate: specific activity,
Less than 17% of people who start like running or
the challenge make it to Day 30, he plank pose.
says.
Scott Dunaway, owner of the
ChiroStrength chiropractic and fit-
ness clinic in Clarksville, Tenn.,
RUNNING
ULLA PUGGAARD FOR THE WALL STREET JOURNAL

yoga challenge” in January. lead author was Hengchen Dai, wrote a critical blog post about a
Interest in exercise surges then a doctoral student at the Uni- 30-day ab challenge he saw a
around New Year’s Day, but 30-day versity of Pennsylvania’s Wharton friend join on Facebook last sum-
challenges are typically more man- School. mer. A similar challenge went viral
ageable than annual resolutions In Australia, Sydney-based app on Facebook in 2014. Dr. Dunaway
and can start any time. developer Davor Jozic has noticed especially criticized the challenge’s
People who participate in a that pattern among users of the sit-ups and curl-ups, which some SQUATS
challenge to complete a class ev- eight 30-day challenge smartphone experts believe can hurt the spine.
ery day for 30 days at Bikram apps he designed for his company, Challenges that start aggres-
Yoga NYC, with four locations in Jozic Productions. He says people sively and ramp up quickly also
Manhattan, can start whenever often download one of the apps, can cause problems, says Jacque
they want, co-owners Donna Rubin such as his 30-day push-up chal- Crockford, an exercise physiologist PLANK
and Jennifer Lobo say. Those who lenge, then wait for the first day and education specialist with the
finish a challenge receive two of a month to start it. San Diego-based American Council
guest passes, discounts on future About 6.5 million people have on Exercise. It takes people an average of comfortable environment and
classes and, sometimes, a round of downloaded the apps in the past One 30-day squat challenge four visits a week for six weeks to keeping the plan simple.
applause from classmates. The two years, Mr. Jozic says, with floating around the Internet starts become regulars at a gym, accord- Mr. Kaushal, a doctoral candi-
challenge costs $39 for Bikram downloads surging in January and with 50 squats and ends with 250. ing to a study of 111 new gym date in behavioral medicine at the
Yoga NYC newcomers and $145 for just before summer in the north- That escalation would be a “shock members published in August in University of Victoria in British
members. ern hemisphere. The apps have six to the system” of someone who the Journal of Behavioral Medi- Columbia, says a monthlong pro-
The owners estimate that a few levels for different fitness starting didn’t regularly exercise, Ms. cine. The keys to establishing an gram might not be enough to
thousand people have completed points. They ping a reminder at a Crockford says. “If you’re starting exercise habit, lead author Navin change habits, but that something
the challenge since they launched user’s selected time each day, and from nothing, chances are in those Kaushal says, were exercising at like a 30-day plank challenge could
it in 2002. each exercise session takes a few first seven days you’re going to be the same time every day, choosing make for a good start. “You can’t
The popularity of 30-day chal- minutes, he says. The apps have up very sore.” something enjoyable, doing it in a get any more simple than that.”

LAUNDRY
Brothers Erin and Leif
Frey, recent college gradu-
ates, grew up doing their
own laundry and were puz-
Continued from the prior page zled by the predominantly
in most research projects. “It feminine fragrances that line
used to be all women,” says the laundry aisle. They
Lora Van Velsor, Sun Prod- launched a crowd-funding ef-
ucts vice president of mar- fort and tapped their own
keting. “Now we go for a savings to develop Frey de-
70-30 split of women and tergent, which launched on-
men.” line last fall.
Sun Products researchers “The world is pushing for
©2015 California Closet Company, Inc. All rights reserved. Franchises independently owned and operated.

found that men report fewer gender equality in the home

laundry frustrations than and yet these household
women, except for one major
PERSIL

products just aren’t there,”

complaint: sorting. “Men
tend to do fewer loads and
they tend to put everything
together,” says Deep Bhan-
dari, Sun Products’ vice pres-
ident of consumer insights
and strategy. “Sorting is a
big problem for them, a sig-
nificantly higher one than
for women.”
Whirlpool Corp. says it
developed a “ColorLast” cy-
cle on its washing machines
in 2014 to better accommo-
date men who don’t sort.
The cycle uses a combination
of water temperature, time
and movement to keep col-
ors from fading.
California Closets creates custom storage Men are much more likely
solutions for every room in your home. than women to always use
the “normal” cycle on their
Visit our showroom or call today to arrange your
washers, and more likely to
complimentary in-home design consultation. use the same cycle every
time on their dryer, Whirl-
U PPE R EAST SI DE212.517.7877 pool says. Women tend to
prefer intricate sorting, care-
TR I B ECA & B ROOKLYN 646.486.3905 ful selection of specialized
NASSAU & QU E E NS 516.334.0077 settings and precise folding
WESTCH ESTE R & H U DSON VALLEY 914.592.1001 routines, a process Whirlpool
calls “art.”
californiaclosets.com Dean Rock, a stay-at-
home father of three chil-
Leif Frey says.
Persil’s first Super Bowl ad aired last weekend. To craft a sufficiently
masculine fragrance, the
dren in Chappaqua, N.Y., de- executive, he founded Hero brothers erected a chemistry
scribes laundry in his Clean, a company that sells set in their mother’s base-
household as “a constant cleaning products including ment to tinker with the
slog.” He separates clothes detergent for men. The line, notes of top-selling colognes.
needing dry cleaning and his which launched in August, is After several months they
wife’s delicates from the rest sold online and in some Tar- found their favorite combi-
of the family’s laundry and get stores. nation of oak, musk, leather,
then “it all goes in,” he says. “I don’t use women’s de- bergamot, sandalwood and
“If it gets clean and done, it odorant, soap or shampoo,” frankincense. The company
works for me.” says Mr. Eaton. “But I have promises that it fights stains
Josh Purdy, a 38-year-old to throw my clothes in deter- but is gentle enough to be
public relations manager in gent that’s been formulated “designer-label safe.”
Minneapolis, regularly and marketed to women.” Persil, the detergent
checks the back of his deter- Hero Clean’s detergent is made by Henkel AG, says
gent bottle for measuring calibrated to fight stains that laundry habits are deter-
guidelines and looks up have been sitting for a while mined by children more than
stain-fighting tips online. and meant to accommodate gender dynamics. Last week-
To keep his high-end men’s routine of “clean, de- end, it aired its first Super
jeans in good condition, Mr. lay, delay, delay then clean Bowl ad, which starred a
Purdy reads each label for again,” Mr. Eaton says. James Bond-style spokesman
washing instructions and The detergent formula intended to appeal to both
usually dries them on a low targets stains and soils Mr. men and women.
setting. “If I don’t do it Eaton says are common to “It doesn’t matter if a
right, instead of 30 inch men, including sweat, male or female heads the
length jeans they’re 29, and ketchup, mustard, beer, gaso- household,” says Caroline
then I can’t wear them any- line, grass, wine and axle LaBarre, director of market-
more,” he says. grease. Future marketing ing for Henkel’s U.S. pre-
Mike Eaton believes will highlight Hero Clean’s mium laundry detergents.
men’s laundry needs are dis- ability to remove glitter and “We’re clear that children
tinct. A long-time marketing lipstick, he says. drive laundry volume.”
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.
Adopting a Dog Gets Easier, With Retailers’ Help
BY ALINA DIZIK
Beth Bacon said her family had
to jump through hoops before they
could adopt what she calls their
“classic mutt.”
The 43-year-old Washington,
D.C., communications consultant
recalls the two-hour application
from City Dogs Rescue. Where
would the puppy sleep? Would
family members be willing to start
on allergy medication if neces-
sary? What was their budget for
the first year of ownership?
The approval process “was in-
timidating,” says Ms. Bacon,
mother of 5-year-old Caleb and 10-
year-old Ella. She and her hus-
band, Jason Freihage, paid a $395
fee, agreed to a home visit from
the nonprofit rescue group and
were approved to adopt Sandy, a
10-month-old hound-and-beagle
mix, in December. City Dogs Res-
cue arranged the puppy’s trip from
North Carolina, and a foster volun-
teer housed her for two weeks to
vouch for her family-friendly tem-
perament. Ms. Bacon says she was
happy for “a second opinion” on
Sandy’s personality before intro-
ducing her to the children.
Dog adoption has taken off in
recent years alongside pet owner-
ship. But the adoption process re-
mains fraught with uncertainty for
prospective owners, especially if
there are children in the house-
hold. Big pet-supply retail chains
PetSmart Inc. and Petco Animal
Supplies Stores Inc. have become
big forces in dog adoptions, each
with a charity arm that hosts
weekend pop-up events in stores
and parking lots, where rescue
groups display adoptable cats and
dogs.
“We act as an extension of the
shelters,” says Eran Cohen, chief
customer- experience officer at
PetSmart, which now has 21 adop-
tion centers within its 1,400
stores.
In many cases, consumers visit-
ing the events and looking to
adopt are thrilled to find out they
can walk away with a dog tucked
under their arm. “We love when
they go home with the animal that
day,” said Susanne Kogut, a Petco
vice president who heads the
Petco Foundation. “That’s an op-
portunity for us to talk to that
new pet parent.”
More than 100 U.S. municipali-
ties, including cities such as Los
Angeles, Chicago and Pittsburgh,
have banned retail sales of dogs
from commercial breeders—which
CODING
Continued from page D1
cepts doesn’t always require
screen time, something many par-
ents work hard to limit. Kati Iceva
and her husband began playing Ro-
bot Turtles, a board game that
teaches basic programming skills,
with their two children as early as
age 3. Players instruct their turtles
to move toward capturing a gem
on the board by putting code cards
into a logical sequence. Children
use “bug” cards to reverse mis-
takes.
“We wanted to inspire them
and provide opportunities to start
exploring,” says Ms. Iceva, of Kirk-
land, Wash., a senior software en-
gineering manager at Microsoft.
Her daughter, Mia, now 6, gained
confidence as she learned to pro-
gram the turtle without any mis-
takes, Ms. Iceva says. Her son,
Filip, now 10, has taken several
programming classes.
Parents also can turn everyday
tasks into playful logic puzzles to
help children learn to break down
tasks into steps, says Alice Stein-
glass, a vice president at Code.org,
Seattle, a nonprofit that promotes
computer-science education. For
example, one parent might leave
the room while the other builds a
simple Lego toy and the child
writes down instructions for doing
it, she says. Then, the other parent
returns to the room and tries to
follow the child’s instructions. The
inevitable gaffes may be funny, but
they also help a child practice pre-
cise, step-by-step thinking.
Work & Family Mailbox Sue Shellenbarger answers readers’ questions.
Q: I’m a male college student
pursuing a career in advertis-
ing and marketing. I’m wondering how
wearing clothes by designers such as
Gucci or Versace might affect my im-
age. What about facial hair? How
much does being overly muscular, or
overweight, matter?
— J.W.
A: Many hiring managers expect
college recruits to be hungry
and highly motivated. Unless you’re in-
terviewing for a fashion-industry job,
“don’t wear anything that shows off
that it’s very expensive,” says Lesley
Mitler, co-founder of Early Stage Ca-
Above, Ella Freihage, 10, and Caleb Freihage, 5, with Sandy, the dog their
family adopted in December; below, an adoption event at a Florida Petco in
2014; at right, a dog finds a new family at a PAWS Chicago adopt-a-thon.
translates to high demand for
adoptable dogs, according to the
Best Friends Animal Society, an
animal-welfare nonprofit.
On Adopt-a-Pet, a search web-
site, nonprofit adoption groups
number about 16,000, almost dou-
ble the number in 2010. Yet with
high demand for adoptable dogs,
and especially for purebred dogs,
adoption groups can afford to be
choosy.
Amanda Schwartz, a 28-year-
old Washington, D.C., lobbyist and
experienced poodle owner, filled
out 12 applications over three
months to adopt a poodle. She
says she was refused by one res-
cue group because she rented
Mia Icev, 6, above left, with a certificate of achievement she got last year for a coding class she attended during Take Your Child to Work Day at her father’s
employer. Her brother, Filip, 10, writes code on his laptop at his home in Kirkland, Wash., using a visual-programming language called Scratch.
Kieran Snyder recently turned
taking down the family’s Christmas
tree into a programming puzzle for
her 6-year-old daughter, River.
They planned and wrote down
step-by-step commands and if-then
instructions for River and her two
stepsisters, ages 7 and 4½, to fol-
low.
For example: “If all the red or-
naments are off the tree, then be-
gin with the blue ornaments and
start the process over,” says Ms.
Snyder, co-founder of Textio, a Se-
attle provider of online text analy-
sis. River had to “debug” the pro-
gram when she realized she had
forgotten to include a “take down
the tree” command.
Ms. Snyder holds River’s screen
reers, a New York career-coaching firm.
Some bosses will assume you come
from a wealthy family and are too
comfortable to work hard.
If you want a job requiring creativ-
ity, wearing the latest Apple watch and
dressing with colorful accessories or
fabrics can project those attributes,
says William Arruda, a New York per-
sonal-branding consultant. The look
must come naturally, though, he says.
“People can sense when you’re trying
to convince them of something that
isn’t true.”
In advertising and marketing, dress
tends to be more casual than in many
other fields, Ms. Mitler says. Research
HOME & DIGITAL
rather than owned her home, and
was rejected by two other groups
because she didn’t have a fenced-
in yard. She was required to pro-
vide the name of the dog’s future
groomer, because poodles require
a stringent grooming schedule.
In January, Ms. Schwartz paid a
$350 fee and adopted eight-year-
old Jackson through the Delmarva
Poodle Rescue. “I didn’t meet him
until he came to my house,” she
says. The dog has mild anxiety is-
sues, and the rescue group covered
a visit to the veterinarian for a
dental cleaning and removal of a
benign cyst, she adds.
Adoptive dogs’ needs vary
widely, says David Liedman,
time to a few hours a week. During
that time, she often helps her learn
Hopscotch, using a visual-program-
ming language to create designs
and games.
It is usually best for children
younger than 8 to sit with a parent
while doing coding games, says
Bryson Payne, author of “Teach
Your Kids to Code,” who held his
two sons in his lap starting at age
2, showing them how to tinker
with programming designs and
graphics. “Part of the fun is doing
it with the parent. It’s just like
reading with a child,” Mr. Payne
says.
Some parents push their young
children right away to learn a text-
based language such as Python, but
typical office wear on the employer’s
website, TheMuse.com or social media.
Then dress a little more formally for
networking or interviews.
“If people there wear jeans and
sweaters, you need trousers and a but-
ton-down shirt and jacket,” she says. If
you want a job that involves meeting
with clients, dress to impress the cli-
ent.
Being overweight or overly muscu-
lar isn’t a problem “if you’re well put-
together,” says Anna Soo Wildemuth,
an Elmhurst, Ill., image consultant. For
facial hair, good grooming is the rule,
she says. Avoid the shaggy look;
beards should be trimmed close.
Wednesday, February 10, 2016 | D3
lot or pick fights with other dogs
in this kind of setting, he said,
even if “they shine in one-on-one
meetings.” And volunteer handlers
may not know enough about an in-
dividual animal’s temperament to
manage its behavior in public.
Still, many consumers find the
events help make the adoption
process more convenient and more
pleasant than a trip to a shelter.
Dog-transport volunteers help
shelters and nonprofits meet ris-
ing demand for adoptable dogs.
Younger animals and breeds
families most desire often come
from southern states where there
are few free programs to spay or
neuter dogs, says Paula Fasseas,
executive chair of PAWS Chicago,
which adopts 6,000 dogs a year
and places them with individual
owners.
PAWS Chicago began working
with Petco in 2014 to create an
adoption center within a Highland
Park, Ill., Petco store, where there
is enough room to handle large
breeds. The Petco Foundation do-
CLOCKWISE FROM THE TOP: BETH BACON; CLAIRE DEMOS; RICHARD GRAULICH/ZUMA
nates pet food and boarding space.
Dogs spend time in groups in
small rooms rather than cages.
Currently, some 20% of PAWS
Chicago’s dogs come from out of
state, compared with 5% in 2010.
Adoption groups generally
charge consumers a fee ranging
from $200 to $500 to adopt a dog.
Retailers hosting pop-up events
typically don’t take in fees. But be-
cause new owners have to stock up
on supplies, retailers do see the
events as driving up pet ownership
and local sales, says David Lum-
mis, an analyst at Packaged Facts,
a division of MarketResearch.com.
“The lifeline of their business is
new pets.”
Last year, Petco stores intro-
duced a free Welcome to the Fam-
ily coupon booklet. The chain is of-
founder of the nonprofit City Dogs fering themed adoption events,
Rescue, which hosts weekly adop- such as a “Love Changes Every-
tion events at local pet stores and thing” weekend in February, where
places some 600 dogs a year, and other neighborhood businesses are
City Dogs Daycare. welcome to market during adop-
For an adoption to go smoothly, tion events in Petco stores.
Mr. Liedman says, a family should Kriser’s, a 31-store pet-supply
start preparing long before the pet chain, hosts store events where
arrives at the home. Adopting a families come for an initial screen-
dog shouldn’t be an impulse move. ing followed by a home visit be-
Yet, he says, “people expect adop- fore adopting.
tion to be the same experience as The vetting process provides an
walking into a store or ordering “extra level of comfort” and helps
off Amazon.” set the store apart within the dog-
When pet shopping at a pop-up adoption business, said founder
adoption event, would-be owners Brad Kriser. Customers with post-
should be aware that the events adoption issues are referred to the
can be stressful for dogs. Some rescue group, not the store, he
may act scared of strangers, bark a adds.
ANNABEL CLARK FOR THE WALL STREET JOURNAL (2)
this often leads to confusion and is on the creativity. You want to
frustration, says Rob Kissner, pres- tell a story, create an e-card for
ident of Digital Arts Experience, a somebody’s birthday, create a song
White Plains, N.Y. provider of K-12 or a drawing. And you need to
computer-technology classes. know a couple of commands and
“There’s no rush,” he says. Most use a computer to do that,” he
children do better using visual-pro- says.
gramming languages such as Many of the websites for chil-
Scratch or Blockly to learn basic dren make coding easy enough for
concepts at least until age 9, then anyone. Although I’ve never writ-
moving on to learn Python or ten a line of code, I recently took a
other text-based languages. free “Hour of Code” tutorial on
And some children just aren’t Code.org and found the concepts
that into it. Bon Crowder, owner of easy to grasp.
MathFour, in Houston, a math- When I asked a video-game-lov-
teaching website for parents and ing family friend, 11-year-old Se-
teachers, says she tried to interest bastian Richardson, to try it, he
her 6-year-old daughter, Kate, in raced through the Hour of Code in
programming. But online games 35 minutes. Within a few minutes
and puzzles failed to hold the girl’s of finishing the lesson, he was hav-
interest, so Ms. Crowder has let it ing fun programming his own basic
go. “If you try to force them to sit games.
down with it, you’ll drive them
away,” she says.
Coding games and puzzles helps
children go beyond a passive role
A lack of interest early “doesn’t
mean your kid isn’t going to be
able to code,” Ms. Crowder says.
with technology, using it only to
receive information or entertain-
ment, to seeing it as a tool for cre-
She recommends parents acquaint ating things, expressing their ideas
students with basic programming and sharing them with others, says
principles a couple of years before Mitchel Resnick, director of the
they enroll in computer-science Lifelong Kindergarten Group at
classes in school, “so when they hit MIT’s Media Lab, where Scratch
the classroom, they don’t say, ‘I was created.
don’t know what this is all It also instills design and prob-
about,’ ” she says.
Most children are drawn to pro-
gramming by imagining what they
lem-solving skills, enabling chil-
dren to continually adapt and im-
prove strategies, Dr. Resnick says.
can accomplish, says Manuel Cer- Many learn basic math too, such as
queiro, founder of codingKIDZ.com, working with coordinates to place
an after-school computer-science figures or lines at a specific place
program in New York. “The focus on the screen.
D4 | Wednesday, February 10, 2016 THE WALL STREET JOURNAL.

CARS

Repair Truck Offers a Home Anywhere on the Road

Claire Hummel, 33, a jewelry designer bilia from my childhood and tools that can fix
and repair expert from San Francisco, on anything. I keep my ring-sizers and some-
her wandering jewelry repair truck, as told times solder torches in the truck, so I can re-
to A.J. Baime. pair jewelry or other things such as chande-
I inherited my truck when my grandfa- liers. I keep tons of blankets and utensils and
ther died four years ago. He my coffee maker in the truck, too.
MY RIDE lived in Missouri, and when he Basically, it has everything I could possi-
died, I drove the truck from St. bly need except a bathroom. I can stay in it
Louis where I grew up to the for a month at a time while traveling and
West Coast. I remember thinking: Sorry, never miss home. Living in an urban environ-
grandpa, I’m going to turn this truck into ment for almost 11 years, the truck is like a
my traveling little home. getaway vehicle—an escape from the chaos.
It started out as a simple gray pickup. I I have a lot of vehicles, and I love them
added the camper in the back, which I all: a turquoise 1964 Volkswagen Karmann

JASON HENRY FOR THE WALL STREET JOURNAL (2)

bought from a couple that custom-built it in Ghia, a large old Dodge work van, a small
the 1970s. Then I turned the truck into my boat and a small motorcycle. But my truck is
room on wheels, a jewelry workshop, and a my most beloved and my daily driver.
place where I can keep things I’ve collected. I sometimes laugh thinking about what
As a jewelry maker, I create my grandfather would say
a lot of statement pieces, if he could see the truck.
and my truck is its own He’d be, like, what?! But I
statement piece. Every- know he loves me. And he’s
where I look in it, I see happy his old Ford Ranger
things that I love. is still on the road and
I have antiques from my well-taken care of.
grandfather, art pieces of all
kinds made by people I’ve
met and strangers too, tex- Contact A.J. Baime at Claire Hummel, a jewelry maker and repair expert, with her wandering repair-shop and camper, in
tiles I’ve collected, memora- Facebook.com/ajbaime Montara, Calif., near her home in San Francisco.

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THE WALL STREET JOURNAL.
MUSIC
JILL STEINBERG
Maya Beiser playing ‘Labyrinth: Room No. 35.’
Cutting-Edge Concertos
BY ALLAN KOZINN
E
Boston
ntrepreneurialism has
become a byword
among classical musi-
cians lately, but few have
mastered the art of founding
a business upon creativity as
deftly as the composer Paola
Prestini. Ms. Prestini, 40,
started VisionIntoArt, her
multimedia production com-
pany, when she was still a
student at the Juilliard
School, in 1999. She expanded
into recordings, with her VIA
Records imprint, in 2014, and
this past fall VIA opened Na-
tional Sawdust, a large
Brooklyn, N.Y., performance
space that promises to be a
laboratory and playground
for composers, performers
and listeners passionate
about contemporary music.
Not that having a head-
quarters keeps Ms. Prestini
from sending her works out
into the world. Her latest
project, “Labyrinth”—a pair
of what she calls “conjoined
concertos” for violin and
cello, each with a subtly am-
bitious electronic accompani-
ment and an ambitious video
element—has been slowly
taking on a life of its own
since its 2014 premiere at the
Krannert Center, in Urbana,
Ill, which commissioned it. A
recording (on VIA, naturally)
created a buzz among new-
music fans when it was re-
leased last spring, and on
Thursday evening, the piece
took over Calderwood Hall,
the peculiarly appointed four-
level chamber music theater
at the Isabella Stewart Gard-
ner Museum.
Ms. Prestini’s music is
stealthily conservative. Its
surfaces are etched in experi-
mental theatrical sensibilities
and painted in unusual tim-
bres—in this case, an elec-
tronic score built of the pro-
cessed sounds of swooshing
washing machines, voices,
beeping EKGs, and looping
cello and violin lines, all of
which serves as the orchestra
in these concertos. But the
engine that drives these
works runs on more tradi-
tional elements: long, arching
melodies, waves of unabashed
emotionalism, and overt vir-
tuosity all kept coherent by a
keen sense of structural clar-
ity.
In each concerto, the solo-
ist is the protagonist in an
inner exploration, a psycho-
logical probe described in
both Ms. Prestini’s musical
maelstrom and the video im-
Pepper ...
And Salt
THE WALL STREET JOURNAL
“The good news is, we’re un-
safe for sushi.”
ARTS IN REVIEW
agery. In “House of Solitude,”
the journey is one of with-
drawal and disconnection. In
Carmen Kordas’s video, im-
ages of building facades, win-
dows, close-up body parts
and eerie stone staircases
flow together, ending in the
picture of a denuded tree.
The more extroverted “Room
No. 35” moves in the oppo-
site direction, toward the
world of passion and fantasy,
captured in Erika Harrsch’s
alternately psychedelic and
erotic imagery of jellyfish,
geometric patterns, cloud
forms and a silhouetted cou-
ple making love.
“House of Solitude,” the
violin work, was written for
Cornelius Dufallo, who gives
a commanding performance
on the recording. This time it
Paola Prestini makes
music that is at once
both stealthily
conservative and
subtly ambitious.
was performed by Tim Fain, a
young player who has been
increasingly devoted to new
works. His electrifying read-
ing pointed up passing allu-
sions to Bach’s and Bartok’s
solo violin work, but also
kept a clear focus on Ms.
Prestini’s hard-driven narra-
tive, to say nothing of its
pervasive sense of desolation.
“Room No. 35,” the cello
work, is equally assertive but
more adventurous, perhaps
not surprisingly, since the so-
loist, Maya Beiser, is listed as
a “co-creator.” It draws on
the full lexicon of cello tech-
nique—sliding figures,
chordal passages, brusque-
ness, delicacy and dialogues
between pizzicato and bowed
lines—and in the final sec-
tion, Ms. Beiser switches to
an electric cello linked to a
computer program to create
additional sounds. But for all
its kaleidoscopic variety, the
piece never feels like a mere
tour of the instrument’s ef-
fects, and Ms. Beiser’s thor-
oughly assured performance
had an almost balletic grace-
fulness.
The four-year-old Calder-
wood Hall, a cube-like theater
designed by Renzo Piano, is
ideal for many things, but not
for this piece. Usually, the au-
dience on its lowest level is
seated against the four walls,
with the performers taking
over the center of the room—
the stage, in effect—while
those in the shallow upper
tiers look down on the pro-
ceedings. But in “Labyrinth,”
the musicians are meant to
be enveloped in the projected
video. Mr. Fain and Ms.
Beiser were stationed, there-
fore, near a wall, with the
video projected behind them
and crawling up the side
walls. Those walls are dark
oak, with rectangular acousti-
cal perforations. It was hard
not to feel that a smooth cy-
clorama would have been
more amenable to this
dreamlike production. But if
the work’s visual impact was
compromised, the music, at
least, lost none of its haunt-
ing power.
Mr. Kozinn writes about
music for the Journal.
Wednesday, February 10, 2016 | D5
ART
Going Gaga for Dada
Dadaglobe
Reconstructed
Kunsthaus Zürich
Through May 1
Dada Universal
Swiss National Museum
SUCCESSION MARCEL DUCHAMP/PROLITTERIS; ALEXANDRA ROTH
Through March 28
BY A.J. GOLDMANN
T
Zurich
his city has gone com-
pletely Dada. Bookshops
display little else in
their windows, the Swiss-Ger-
man tabloid Blick has pub-
lished a special Dada issue,
and a string of exhibitions are
timed to the centenary of the
movement that mischievously
and gleefully rewrote the rules
of art.
Conservative, orderly Swit- Above: Duchamp’s ‘Fountain’ (1917/1964); right: Sophie Taeuber-
zerland might seem like the Arp’s ‘Portrait of Jean Arp’ (1918).
last place where such a mad,
anarchic dismantling of artis- sense of exuberance, antic glee ings, photos, photomontages,
tic rules would take flight. But
in 1916—as Europe was en-
gulfed in World War I—artists,
and mayhem that is largely
lacking from the city’s other
main Dada exhibits.
poems and collages is enor-
mous, from the movement’s
key exponents in Berlin (Han-
writers, revolutionaries and Tzara’s never-completed nah Höch, George Grosz, John
philosophers who had sought Dada world atlas is the subject Heartfield) and Paris (André
safe haven in the neutral coun- of “Dadaglobe Reconstructed” Breton, Marcel Duchamp, Jean
try came together at a café at the Kunsthaus Zürich, the Cocteau) to De Stijl founder
that the German refugee Hugo city’s main art museum. Fol- Theo van Doesburg (who used obsession with Dionysian en-
Ball aspired to turn into an lowing World War I, Dada had the pseudonym I.K. Bonset) ergy and delirium. Sometimes
artists’ cabaret. Responding to mostly moved out of Switzer- and the French-American com- the displays are just plain
a newspaper ad for “sugges- land. Tzara relocated to Paris poser Edgard Varèse. Constan- dumbfounding, as when the
tions and contributions of all and appointed himself director tin Brancusi and Joseph Stella exhibit claims that the Dodo
kinds,” the brilliant group of of le mouvement Dada (no one are possibly the two least bird, beloved by Lewis Carroll,
artists that soon formed— seems to have objected). In likely artists Tzara solicited. laid the Ur-Egg of Dada.
Tristan Tzara, Marcel Janco, 1920, he solicited 50 artists to The show’s generously anno- When the show traces
Jean Arp, Emmy Hennings contribute to a 300-page vol- tated catalog (also edited by Dada’s unstoppable march
(Ball’s wife) and Richard ume to be published in an edi- Ms. Sudhalter) is the first-ever across time and geographic
Huelsenbeck—put on weekly tion of 10,000. Submissions edition of “Dadaglobe,” nearly space, it is aided by a sound-
performances combining art, a century after Tzara proposed track ranging from Schoenberg
music and spoken word that what he referred to as “The to the Sex Pistols and film pro-
were boisterous, unpredictable A revolutionary Greatest Standard Work in the jections from Dziga Vertov to
and seldom repeated. movement celebrates World.” D.A. Pennebaker. The exhibit
When the Cabaret Voltaire Marcel Duchamp’s “Foun- discusses the Dadaist root of
shut down in July 1916, the its centenary. tain,” a porcelain urinal turned Surrealism, as well as later
fledgling movement experi- on its side and signed “R. Mutt movements that share in
enced the first of many disper- 1917,” was arguably Dada’s Dada’s freewheeling ethos. In-
sals that would only streamed in from all over Eu- most influential provocation. tentionally or not, for example,
strengthen its cosmopolitan rope and New York. The fol- A 1964 replica is given pride of the leaders of the Zurich youth
and impossible-to-pin-down lowing year, Tzara had gotten place in “Dada Universal,” an revolts in 1980 were channel-
character. According to very far in laying out the vol- entertaining and bizarrely ar- ing Ball and Tzara when they
Huelsenback, Dada “was a ume when his collaborator, the ranged exhibition at the Swiss threatened to “turn the state
dancing epidemic,” with “si- painter Francis Picabia, re- National Museum that aims to into cucumber salad.” But
multaneous and spontaneous nounced Dada and withdrew reveal the “universal spirit of what is missing from this off-
beginnings in different parts his support for “Dadaglobe,” Dada.” beat, highly selective presen-
of the world.” effectively killing the project. Housed in a black pavilion, tation of Dada and its afterlife
The Cabaret Voltaire that “Dadaglobe Reconstructed” the exhibit is made up of illu- is equally significant. Without
reopened at its original loca- brings together the 160 small- minated cubes showcasing Dada there would be no Pop
tion in 2004 is a shrine to format works on paper that thematically grouped objects. Art, no Fluxus, no Mad maga-
Dada that, in addition to serv- were mailed to Tzara in Paris The most compelling ones deal zine—none of which the show
ing absinthe and selling post- and later auctioned off after directly with the movement’s touches on. Today, it’s virtu-
ers, is feting the 100-year-old the artist’s death, landing in origins and its protagonists, ally impossible to imagine our
movement with an exhibit of the hands of myriad collec- like Sophie Taeuber-Arp, world without Dada. As Tzara
documents culled from the ar- tions. As assembled by art his- whose totemic wooden “Por- wrote to a New York group
chives of Harald Szeemann. torian Adrian Sudhalter, the trait of Jean Arp” is displayed that wanted his authorization
More intriguing, though, is di- intimate exhibit, which will here. Another grouping pres- to call itself Dada, “Dada be-
rector Adrian Notz’s anniver- travel to New York’s Museum ents the movement’s intellec- longs to everybody . . . like
sary program of weekly per- of Modern Art in June, is an tual debt to radical thinkers God and the toothbrush.”
formances, readings and incredible feat of curatorship from the Pharaoh Akhenaten
manifestos. Perhaps these and research. The variety of (with whom Ball was fasci- Mr. Goldmann writes about
spectacles can restore the artists who submitted draw- nated) to Nietzsche and his European arts and culture.
FILM
Recapturing the West
BY JESSICA KASMER-JACOBS valho’s lost im- Daguerreotype portrait of
A
ages. Mr. Shlaer, Solomon Carvalho, dated 1850.
n Orthodox Sephardic who travels in a
Jew of Spanish-Portu- midsize white room or studio. Braving sleet,
guese descent, Solomon van with a dark- snow and biting winds, Car-
Carvalho (1815-1897) is today room built into valho adapted the process for
understood to be the first Jew- the trunk, can the road—ignoring the naysay-
ish-American photographer. In narrow down ers and managing to take
1853 he was the professional Carvalho’s pic- nearly 300 daguerreotypes of
daguerreotypist on John Fre- tures to their the West at its most wild. “Ev-
mont’s fifth, and final, west- exact site, give ery successive picture im-
ward expedition. Earlier expe- or take 10 feet. proves upon its predecessor,”
ditions by Fremont and others At different in- wrote Fremont of Carvalho’s
were known to take sketch art- tervals in Car- work, “and those of yesterday
ists, but this was the first to valho’s story, we were jewels.”
include a photographer. pause to accom- Eventually, weather condi-
LIBRARY OF CONGRESS
Carvalho’s was a 2,400- pany Mr. Shlaer tions worsened and Fremont
mile, five-month journey from to the spots and his men abandoned the ex-
New York City to Parowan, where Carvalho pedition. Carvalho’s memoir
Utah, including a treacherous stood. The live was published in 1857 to some
trek through the Rocky Moun- footage of the renown, though it would have
tains on foot in deep winter. sites is crosscut been a more popular book had
The photographic images Car- with the copies it included any of his pictures.
valho captured are among the painter who trained as a da- made from Carvalho’s da- The daguerreotypes belonged
first we have of the frontier, guerreotypist to better sup- guerreotypes, and the effect is to Fremont, who used the il-
but the bulk of his work was port his family, was peddling breathtaking. lustrations drawn from them
destroyed in a fire 25 years af- his wares in New York when That Carvalho’s work was in his 1856 campaign as the
ter the expedition. A new doc- introduced to Fremont. After a lost, Mr. Shlaer says in the first presidential candidate of
umentary follows both the brief interview, Fremont re- film, “doesn’t reduce the mag- the Republican Party. Though
journey and an attempt today cruited him. nitude of the achievement.” Fremont lost to Buchanan in
to re-create his daguerreo- Two weeks later, Carvalho, The men battled the elements the general election, the pic-
types. hauling 20 pieces of luggage, constantly. Their mule train tures furnished his campaign
“Carvalho’s Journey,” writ- rendezvoused with Fremont teetered off a cliff, and though with a sense of rousing opti-
ten, produced and directed by and his group of working men, Carvalho’s plates and equip- mism and visual resplendence.
Steve Rivo, relies on a range of mountaineers, and teamsters ment were saved, all the tent Fremont then placed them in a
archival material, including of every stripe. The purpose of poles broke and the men were storage facility in New York,
Carvalho’s memoir and the few the expedition was to find a forced to sleep huddled next to and on the evening of Oct. 10,
remaining copies of the da- transcontinental railroad route their horses for warmth. They 1881, in a fire that took down
guerreotypes that survive as along the 38th parallel. Fre- battled scurvy, fever, and star- an entire city block, the da-
etchings and illustrations. mont hoped to make it from vation so severe they took an guerreotypes were lost. While
Scholars and artists chime in, Kansas City, Mo., to the Pacific oath against cannibalism. Carvalho’s work is sadly gone,
and the story moves at bold coast in 60 days, and em- Creating a daguerreotype is Mr. Rivo’s film proves that the
clip against the backdrop of barked just as winter began in an arduous process involving photographer’s pioneering
Antonio Rossi’s staggering cin- earnest. heated chemicals and multiple spirit is alive and well.
ematography. (Showtimes and A staple of Mr. Rivo’s film is steps both before and after the
locations can be found at car- modern-day daguerreotypist image is captured. It’s a formi- Ms. Kasmer-Jacobs is an
valhosjourney.com.) Robert Shlaer, who makes it dable task for any professional assistant books editor at the
Carvalho, a former portrait his mission to re-create Car- with the resources of a dark 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 10, 2016
Heard On
The Field
Cam Newton to Critics:
‘I Am My Own Person’
Carolina Panthers quarterback
Cam Newton made no apologies on
Tuesday for his short postgame
comments after his team’s 24-10
Super Bowl loss to the Denver
Broncos and gave an explanation
for his demeanor in the hours fol-
lowing Sunday’s game.
“I’ve been on record to say I’m a
sore loser,” Newton said. “Who likes
to lose? You show me a good loser,
and I’m going to show you a loser.
It’s not a popularity contest.”
Newton, who walked out of a
postgame media session, said he’s
seen “so much blown out of propor-
tion” regarding his actions following
the loss.
He said “emotions took over” af-
ter the game and he has had time
to reflect on the loss since. In his
first extensive comments since the
loss, Newton gave an explanation
of one of the most talked-about
plays of the game. With the Pan-
thers down 16-10 with 4:04 left in
the fourth quarter and facing third
down, Newton was hit by Denver
pass rusher Von Miller, who forced
a fumble. Newton at first moved
toward the ball but didn’t dive for
it. Newton said he thought his legs
would have been oddly placed if he
hit the turf.
“I’ve seen numerous quarter-
backs throw interceptions, and their
effort afterwards, they don’t go. I
don’t dive on one fumble, because
the way my leg was it could have
been contorted,” Newton said. “You
say my effort? I didn’t dive down. I
fumbled, that’s fine. But we didn’t
lose that game because of that
fumble, I can tell you that.”
Newton said his team will return
to the elite of the NFL. “We had an
unbelievable season and we did
what a lot of people didn’t expect
us to do,” he said. “We will be back,
and I mean that. We will be back.”
Panthers coach Ron Rivera de-
fended his star quarterback.
“I’m proud of who he is as a
competitor and a football player,”
coach Ron Rivera said. “Do I wish
he handled it better or differently?
Yes. But that’s who he is, and I un-
derstand who the young man is
for us.” —Kevin Clark
Canada Skates Its Way to the Bottom of the NHL
Thirty years ago, the Stanley Cup
Finals featured two Canadian teams,
Montreal and Calgary. That same sea-
son, six of the seven clubs from the
Great White North finished above ev-
ery American franchise in their respec-
tive divisional standings. Fast forward
a generation and the NHL standings
appear upside down.
Heading into Tuesday’s play, To-
ronto and Winnipeg are in last place
in the Atlantic and Central divisions,
respectively, while Vancouver, Calgary
and Edmonton occupy the bottom
three spots in the Pacific Division.
Only Montreal and Ottawa are cur-
rently floating above an American di-
visional rival—the Buffalo Sabres, who
had the worst record in the league
each of the past two seasons.
While this year may be an aberra-
tion—this is the first season since
1998-99 during which Canadian teams
Damian Lillard, left, is the face of the Portland Trail Blazers, while C.J. McCollum is in the middle of a breakout season.
NBA Stars Who Still Live With Mom
When the Blazers’ Damian
Lillard and C.J. McCollum
moved to Portland—their
mothers went with them
BY BEN COHEN
Portland, Ore.
Portland Trail Blazers guards Da-
mian Lillard and C.J. McCollum have
become the NBA’s brightest young
backcourt in the unlikeliest way
imaginable.
Both were barely recruited out of
high school. Both played for four
years at small colleges. And both live
with their moms.
The Blazers’ leading scorers came
to their highly unusual living ar-
rangements at the beginnings of their
NBA careers. A lot has changed since
they were rookies—Lillard is the face
of Portland’s franchise and McCollum
is in the middle of his breakout sea-
son—but not their roommates.
“If I eat and leave my plate on the
counter, she’ll be like, put your plate
in the sink,” Lillard said. “If the
trash is right there, she’ll be like,
somebody needs to take the trash
out. She’s still my mom.”
Lillard isn’t the only Blazer with
household chores. McCollum, too,
has trash duty. But there is one task
that he has outgrown: washing the
dishes. “We have a dishwasher now,”
McCollum said.
NBA executives cannot tell their
players where to live or whom to live
with. If they could, though, the
chances are there would be more play-
ers with the setups of the 25-year-old
Lillard and the 24-year-old McCollum.
“No general manager or head coach is
going to be disappointed if their guys
are living with their parents,” Portland
general manager Neil Olshey said.
It’s also easy to understand why
Woe Canada
Since the 2000-01 season, how the
Canadian teams have fared collectively
in the NHL, based on points percentage.
.600
.550
.500
.484*
.450
.400
2000-01 ’05-06 ’10-11
*Through Monday's play
Note: Points percentage is calculated by dividing
points by maximum possible points.
The 2004-05 NHL season was canceled
Source: Stats LLC THE WALL STREET JOURNAL.
SPORTS
Lillard and McCollum’s mothers—or
any mother, really—would want to
live with their sons. “I’m real close
with my mom,” said Portland for-
ward Gerald Henderson. “If I asked
her to stay with me, she would.”
But what seems incomprehensible
is why millionaire professional bas-
ketball players in their 20s would
want to live with their mothers.
Lillard felt his family’s absence in
college, he said, and he decided he
would move them in with him as soon
as he could. His mom is there to make
his life easier. “She understands that
I go to work every day,” Lillard said.
She, like McCollum’s mother, runs the
house. She helps cook and would even
wake him if he overslept, Lillard said,
but she’s careful about not bothering
him about basketball when he comes
home from work. “She never talks too
much about the game,” he said. “I’ll
come back, she’ll say good game, and
we’ll go into something else. That’s
healthy for me.”
McCollum was initially against the
idea of living with his mother. But he
broke his foot before his rookie sea-
son, and that’s when he changed his
mind. “I was down and out,” McCol-
lum said, “and she sensed that I
needed somebody to be around.”
Now, more than two years later, she’s
still cooking lasagna for her son.
“She holds down the fort,” he said.
(The players declined to make their
mothers available for interviews.)
McCollum’s mom didn’t know
many people when she moved to
Portland. But it turned out there was
someone else in the area who had the
same schedule: Lillard’s mom. The
mothers of the Blazers’ best players
are now friends. They hang out with-
out Lillard and McCollum. The four of
them also hang out together.
“If there’s a boxing match, or a
Ronda Rousey fight, or a big game, I
always have something at my
’15-16
THE WALL STREET JOURNAL.
house,” Lillard said. “C.J. and his
mom will always come.”
Here, though, is the truly peculiar
thing about Lillard and McCollum
living with their mothers: It may be
why Portland has exceeded almost
everyone’s expectations this year.
The franchise was in a bind last
off-season. The Blazers lost four of
their five starters—everyone but Lil-
lard—and were suddenly staring into
an uncertain future. Many general
managers would have sacrificed this
season for a shot at a high draft
pick. Olshey went with the more un-
usual option: He surrounded his
young stars with more young talent.
The result is a team that’s so
Portland it should be pickled. Olshey
built the Blazers to embody the
same traits as every other business
here: He wanted them to be local
and sustainable. That meant chasing
free agents who were comfortable in
a smaller market and could grow
with Lillard and McCollum. He tar-
geted people who were in the same
stages of their careers as his young
stars, and he ended up signing nine
players, tied for the most in the
league, though none had more than
six years of NBA experience.
What happened next surprised
even some people in the organiza-
tion. The Blazers have won seven of
their last eight games to sneak into
contention for the West’s last playoff
spot. They attribute the unforeseen
season in part to every player being
in Portland more than a month be-
fore pre-season camp, a rarity in the
NBA, which allowed the Blazers all
the time they needed to get to know
each other.
That’s where Lillard, McCollum
and their moms come in. Portland’s
best players making their full-time
homes in the area meant they were
around in the off-season. So their
teammates were, too.
collectively are under .500—it has
been a rough stretch for the nation
that invented, and subsequently domi-
nated, the sport of ice hockey. Two
years ago, when Montreal was its
lone postseason representative, Can-
ada sent its fewest number of clubs
to the NHL playoffs since 1973.
From 1976-90, the New York Is-
landers were the only non-Canadian
team to hoist the Stanley Cup. Even
the World Hockey Association
crowned four straight teams from
north of the border during that time
before its merger with the NHL in
1979. Since then, however, teams from
Canada are merely 1-5 in the Stanley
Cup Finals; the lone victory occurring
when Montreal defeated Wayne
Gretzky’s Los Angeles Kings in 1993.
Adding insult to injury, all seven
teams from Texas, Florida, Tennessee
and California (warm weather states,
where fan interest was supposed to
be too low to support a hockey team)
are currently in playoff position this
season.
—Eric Eisenberg
FEATURE: NBAE/GETTY IMAGES; THE COUNT: GETTY IMAGES; HOF: ZUMA PRESS
“This is where I pay rent,” McCol-
lum said. “This is where the team is
and this is where the facilities are
available 24 hours. And the weather
here is beautiful over the summer.”
Most players spend the off-season
in their hometowns, their colleges or
somewhere in California. Blazers
guard Allen Crabbe, who is from Los
Angeles, said he summered in Port-
land specifically because it wasn’t
any of the above. “I wanted to stay
and focus on strictly basketball,” he
said. “LA and Portland—it’s not even
comparable.”
Lillard and McCollum have been
unusual NBA players from the day
they were drafted. Both came from
schools not exactly known for bas-
ketball. Lillard attended Weber
State, where he never played in the
NCAA tournament, and McCollum
chose Lehigh, which had never sent
a player to the NBA. Lillard believes
their backgrounds as widely over-
looked players kept them especially
close with their mothers.
“It’s easy to be discouraged when
you come up in an era when the
hype in high school and big-time col-
lege basketball is what people look
for,” he said. “You need that support
system to keep you motivated.”
Since moving to Portland, their
mothers have seen them mature into
NBA talents. McCollum, whose scoring
average skyrocketed from 6.8 points
per game last season to 20.8 points
per game this year, the largest jump
in the league, isn’t above singing
Adele in the car with his mom. Lillard,
the 2013 rookie of the year, has in-
creased his efficiency every season in
the NBA and has put himself in posi-
tion to be one of the league’s highest
paid players, but his mother still has
his ear when he goes home.
“She’s going to tell me what’s on
her mind,” Lillard said, “and I’m go-
ing to listen.”
9-4
Odds that Golden
State Warriors guard
Stephen Curry wins the
NBA’s 3-point contest
on Saturday night.
Curry’s teammate Klay
Thompson is the
second choice at 7-2,
followed by J. J. Redick
(Clippers) at 5-1. Chris
Bosh (Heat) is the
longshot at 12-1.
Source: Bovada.lv
 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
© 2016 Dow Jones & Company. All Rights Reserved.
GENESIS PHOTOS/DOW JONES (3)
Hilary Mason
The Mistakes Firms
Make With Big Data
Hilary Mason and Andreas Weigend on how
companies can better use all that information
Big data has launched a
boom industry in data analyt-
ics and science. To find out
where this revolution is
headed and how companies
can get a competitive advan-
tage, The Wall Street Journal’s
Rebecca Blumenstein spoke
with Hilary Mason, chief exec-
utive and founder of Fast For-
ward Labs and former chief
scientist at Bitly, and Andreas
Weigend, director of the Social
Data Lab and former chief sci-
entist at Amazon.com Inc.
Here are edited excerpts.
The big missteps
MS. BLUMENSTEIN: What are
some of the biggest misunder-
standings about data?
MS. MASON: Often people think
that individual data is the
most valuable thing they can
collect. But it’s not useful to
know what I am doing or
where I am, unless you’re par-
ticularly interested in me,
which is weird. But it is very
The Path From CIO to CEO
Dawn Lepore has done it.
Here’s what she learned along the way.
As technology’s role in busi-
ness continues to grow, the
chief information officer argu-
ably has become one of the
most important people in the
C-suite.
But what does it take for a
CIO to become chief executive?
Dawn Lepore knows. Before
becoming CEO of Drug-
store.com Inc., the online re-
tailer she led from 2004 until
its sale in 2011, Ms. Lepore
was CIO at Charles Schwab
Co., where she helped build the
brokerage firm’s successful e-
commerce business.
Ms. Lepore sat down with
Nikki Waller, who heads up
management coverage at The
Wall Street Journal, to discuss
what it takes to migrate from
a technology role to the corner
office. Here are edited ex-
cerpts.
The right balance
MS. WALLER: Dawn, you went
from CIO to CEO in about five
years. How did you do it?
MS. LEPORE: I think it was a
little longer than that! You
know, I was lucky enough to
work for Schwab, which is a
company where technology is
very strategic. And I think
that’s one of the most impor-
tant things as you’re thinking
about your career as a CIO:
Make sure you are with a com-
Gen. Michael Hayden warns companies
not to depend on the government for
cybersecurity, R4
Andy Ozment discusses the potential
impact of the Cybersecurity Information
Sharing Act, R4
useful to know what a popula-
tion of people are doing.
On the implementation
side, one of the common mis-
takes is to think of their data
as a liability, as something
that can only go wrong. It
leads to a defensive attitude.
MS. BLUMENSTEIN: There’s a
lot of talk of transparency,
that the CIO role has shifted
from protecting data to shar-
ing it. Andreas, you had a
good example, a top executive.
MR. WEIGEND: He opened up
all of his inbox and outbox for
anybody within the [company]
domain. Two things happened.
From one day to the next, all
the bickering stopped. And
those people he was thinking,
“How do I get rid of them?”
They left. And people were
more interested in his outbox
than his inbox.
MS. BLUMENSTEIN: What com-
panies are making data trans-
pany where technology is the
product, or technology is criti-
cal to the business.
I also was CIO at a time
when the Internet came along.
Schwab came out with Inter-
net trading very early, which
allowed us to get some visibil-
ity and allowed technology to
be viewed even more strategi-
cally.
And then I was able to take
on other responsibilities. So
by the time I left Schwab—and
I was at Schwab 21 years—I
had operations and human re-
sources and compliance and
communications. I also had
our active trader business,
which was our business for
very, very active traders.
So I really had both a reve-
nue unit and a broad array of
responsibilities before I left to
become the CEO of Drug-
store.com.
MS. WALLER: What is the most
underestimated part of the
shift from CIO to CEO?
MS. LEPORE: I think it depends
on whether it’s a public or pri-
vate company.
I happened to go to Drug-
store, which was public, so
[that meant] dealing with in-
vestors, the earnings calls, the
quarterly cadence, which is
both good and bad.
On the one hand, you’ve got
Aaron Levie sees changes coming in what
he calls a very young market for cloud
services, R4
Jeremy Bailenson says virtual reality has
the potential to change the way users
feel—and behave, R5
JOURNAL REPORT
THE WALL STREET JOURNAL.
Andreas Weigend
parent internally?
MS. MASON: The big tech com-
panies do this well. They have
the infrastructure in place to
collect and count whatever
they like in that data, and
that’s generally available
widely. But I’m more inter-
ested in the companies you
would not think about.
We work with an insurance
company that has put a ton of
time and energy into taking
information about customers.
It used to be that if you
wanted to do something with
the data and you were not on
the data team, you had to fill
out a paper form and send it
to somebody. A week later,
they might send you a report
that would also be on paper.
Now you have a tool that
anyone can use where they
can see these metrics and
these dashboards, and they
can configure them a little bit
themselves. If they need a
more complex analysis, then it
a report card every quarter.
“This is what I said I would
do.” And “Did you do it or
not?” So, in some ways it’s a
good structure and good disci-
pline.
But it’s also difficult. You’ve
got all sorts of things going on
in the company. Some of them
are going better. Some are go-
ing worse. How do you com-
municate that? You can’t be
overly optimistic. But if you’re
too pessimistic, then your
stock goes down. That piece of
it was difficult, especially the
first year.
Also, I don’t have a finance
background, but I was lucky
enough to have an outstanding
[chief financial officer]. So
that’s also important, knowing
what you’re good at and what
you aren’t good at, and mak-
ing sure that you’ve got the
right people around you.
MS. WALLER: Is it easier for
CIOs to go on to be CEOs of
their own company, or do they
need to leap to another kind of
business?
MS. LEPORE: I think it’s easier
to go to another company, es-
pecially if you’ve grown up in
a company. I also think it’s
easier to get a CEO job at a
company that is very technol-
ogy based. Drugstore, for ex-
ample, was a retail company,
INSIDE
goes to that team.
This democratization of
data access has allowed that
organization to become much
more data oriented in decision
making.
MS. BLUMENSTEIN: Andreas,
you were saying that compa-
nies need to radically change
their mind-set about the cus-
tomer relationship.
MR. WEIGEND: The other day I
called up [an airline]. It was
Ms. Mary I talked to. She told
me if I buy a full-price econ-
omy ticket, which was quite
expensive, I get upgraded to
business class. So I bought
that ticket, and I show up at
the check-in counter, and they
seat me in economy.
I said, “They said I would
get upgraded.” And they said,
“Who?” “Ms. Mary.” “Well, do
you want to be on this flight
or not?” Ms. Mary, with my
frequent-flier number, she has
visibility in who I am. Me, all I
know is I talked to Ms. Mary.
That is a lack of symmetry. I
want the history of my conver-
sations available as part of the
ticket and not selectively
when the airline feels it’s in
their advantage to use it.
The role of intuition
MS. BLUMENSTEIN: What are
some of the mistakes that you
see companies making?
MS. MASON: One of the com-
mon fallacies is that data is
opposed to intuition.
but it was completely technol-
ogy-enabled.
Emotional blackmail
MS. WALLER: What can CIOs
do to be seen as business lead-
ers and not just tech leaders
within their companies?
MS. LEPORE: I was never a par-
ticularly technical CIO. I had
some technical training, but I
didn’t have a computer science
degree. I was actually a music
major. So the business aspect
of it was always more interest-
ing to me. I was always drawn
to that. So if that’s the case,
it’s probably a little bit easier
to be viewed as a businessper-
son.
One of the things that one
of my bosses said along the
Andy Bryant on how CIOs need to hone
their communications skills to get their
points across to executives and boards, R5
PLUS: The CIO Network task forces’ top
management and policy recommendations in
five key areas, R2
Wednesday, February 10, 2016 | R1
At the Helm of the Digital
Transformation
The Wall Street Journal CIO Network convened its annual
meeting in an environment of increasing uncertainty. IT
spending for last year posted its sharpest decrease since the
financial crisis, as difficult conditions in the currency mar-
kets hit tech budgets. Cybersecurity and uncertainty over the
global regulation of data pressured companies, too.
In this environment, the CIO plays a key role, leading digi-
tal transformation at 40% of corporations surveyed, accord-
ing to Gartner Inc. “We’re in this fascinating cycle that we
seem all to have dubbed digital business,” Gartner research
chief Peter Sondergaard said. “The issue is how do we or-
chestrate, from a business perspective, that transition?”
Here’s how CIOs assess the challenges, ever mindful that
their companies must continue to innovate and keep up with
the digitization of their markets, which is only accelerating.
—Steven Rosenbush
What's It Worth?
Uncertainty among IT and business leaders about how to value big
data is reflected in their expectations for return on investment in
big-data technology.
Among those Among those
already invested planning to invest
Positive ROI
Negative ROI 38% 43%
Don't know 58%
54%
3% 2%
Source: Gartner Inc. global survey of 437 information-technology
and business leaders, conducted online in June 2015 THE WALL STREET JOURNAL.
Data is a tool for enhancing He was not wrong. He had
intuition. When I worked at many customers. We didn’t
the social-media company, one know if they were moms, but
day the CMO of a frozen- they were looking at mom-
breakfast-sausage brand came type things. They were in the
into our office. The guy said, Midwest. But he missed a clus-
“I want to know what my cus- ter of customers in Texas, and
tomers do on the social web.” they were into motorcycles
And I said, “Great. So first and man things. He missed a
we’ll figure out who your cus- cluster in the Northwest who
tomers are.” were anti food additives [who
He said, “I know who my liked his product because it]
customers are. They’re moms did not have these additives.
in the Midwest.” I said, “How We were able to show that
do you know?” He looked at his intuition was in no way
me like I was crazy. He said, wrong. But he was missing
“They’re my customers. I’ve things that were too small to
been doing this for years.” come up on his human radar.
’If all you talk about
is technology, that’s
going to limit you.’
way when I was CIO was, “You talking about before. The
never emotionally blackmail other is too much tech speak.
me, and I really appreciate I have seen, or been in situa-
that.” And I thought, “What tions, where the head of tech-
does that mean?” nology almost uses the com-
And he said, “You know, plexity of technology as, “Well,
I’ve seen so many tech people if nobody else can understand
who come and say, ‘Well, I can it, then they must need me,
cut my budget, but I can’t right? And so I try to make it
guarantee the system’s going sound as complex as I possibly
to stay up, you know.’ ” can, and I use lots of acro-
So some of it is how you nyms.” That doesn’t go over
deal with senior management well.
of the company. That’s going The third thing is making
to be part of how you’re sure that you understand the
judged as a business leader. business of your company, and
that you can engage in very
JOHN BUSSEY: What common strategic discussions about the
behaviors must a CIO stop do- direction of your business and
ing to become CEO? your competition. If all you
MS. LEPORE: One is that emo- talk about is technology, that’s
tional blackmail that I was going to limit you.
CIO NETWORK VIDEOS
To watch videos of interviews
WSJ
.COM
with top technology executives
and industry experts about the
challenges of today’s tech world,
go to wsj.com/LeadershipReport
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
R2 | Wednesday, February 10, 2016
The Task Forces’ Priorities
The technology executives at last week’s CIO Network
conference divided into five task forces to debate their
management and policy agendas in the following areas.
Here are their top recommendations.
DATA, DATA AND MORE DATA
1 Create a data culture
CIOs should create a cul-
ture of data within their
business. Firms should treat
data as a product, whether
consumed internally or exter-
nally. Its management needs
to be as disciplined and rig-
orous as engineering. This
applies to both data collec-
tion and analysis. They
should create a mechanism
to engage the entire organi-
zation, either through a data
council or individual busi-
nesses.
2 Confront data politics
Today’s CIO should rec-
ognize data as a corporate
asset. Algorithms are often
more objective than a single
opinion. CIOs should try to
make sure data isn’t being
used simply to advance polit-
ical means.
GETTING DIGITAL RIGHT
1 Understand the
business situation,
strategy
Measure the company’s
progress along different di-
mensions to choose the best
course of action. Understand
the demographics, revenue,
margin and risk. Strategies
vary according to a unit’s
place in its digital evolution-
ary life cycle.
2 Get the leadership right
Put the company’s digi-
tal future in the hands of
people who are digitally
minded and collaborative.
Develop appropriate perfor-
The Wall Street Journal would like to thank
the 2016 sponsors for their generous support of
the CIO Network annual meeting.
For more information, please visit
CIONetwork.wsj.com
© 2016 Dow Jones & Company, Inc. All rights reserved. 3C8313
JOURNAL REPORT | CIO NETWORK
3 Deliver analytics in
everyday decisions
CIOs need to find ways to
deliver analytics to the busi-
ness in a timely manner and
within the firm’s everyday
decisions. Businesses are
overwhelmed with dash-
boards and reports that don’t
yield actionable results. How
can we use data to deter-
mine if paying someone 10%
more will impact their reten-
tion?
4 Understand
data quality
Companies face a torrent of
data from devices and sen-
sors whose quality is un-
proven. They need to under-
stand the source of data,
including the technology or
devices that generate and
deliver it. CIOs should help
business partners understand
the importance of data qual-
mance metrics for the busi-
ness and its leaders.
3 Choose your
starting point
Decide whether you are go-
ing to create dedicated digital
units, drive digital innovation
to the core of the business,
create one or more separate
digital business units, or a
mix.
4 Treat organization
as a product
Approach the organization as
a product or service, and as-
sess the skill sets, tools and
processes of each unit. This
INTEGRATING IT AND THE BUSINESS
1 Lead, not just enable,
strategic change
IT needs to shift from an en-
abler of business strategy to
an input to business strat-
egy. In some cases, IT and
business are one and the
same.
2 Understand business
outcomes
ity and how it impacts deci-
sion making. Constantly
question the rigor of the
Too often, IT can deliver ca-
pabilities that don’t support
a larger business goal. Help
analysis. business digitize new pro-
cesses.
CO-CHAIRS
Kathy McElligott,
Executive Vice President and
CIO/CTO, McKesson Corp.
Kumar Mishra, Vice
President, Architecture and
Information Technology IN SEARCH OF CYBERSECURITY
Operations, Nielsen Co.
Stuart Sackman,
Corporate Vice President, 1 Share and share fast
All entities, from private
Global Product and
Technology, Automatic
sector to government, should
share threat indicators as
Data Processing Inc.
SUBJECT EXPERT
quickly and as widely as pos-
sible in an automated way.
And it should be free of cost
Gam Dias, Chief Executive and consequences.
Officer and Co-Founder,
Mo-Data Inc.
2 Beef up deterrence
Increase consequences
for people trying to attack
systems. Make them
pay…somehow.
3 A standard of care
Create a common
allows the organization to
evolve in an agile manner. LEADING INNOVATION
CO-CHAIRS
Gerhard Karba, CIO,
Related Cos.
1 Establish innovation
culture
Enable or establish a culture
Ross Meyercord, Executive of innovation, led by the C-
Vice President and CIO,
Salesforce.com Inc.
Brad Strock, CIO, PayPal
suite and a workforce of di-
verse perspectives and skills,
both inside and outside the
company, and by reducing
SUBJECT EXPERT barriers and friction.
Peter Sondergaard,
Senior Vice President,
Research, Gartner Inc. 2 Look beyond today
Look beyond today’s
business model and ask in-
stead where are we going to
be 10 years from now. Ask
what that means from a
CIO NETWORK MEMBERS
(Chief information officers/
chief technology officers, ex-
cept as noted)
Steven B. Ambrose, DTE
Carlos Amesquita, Hershey
Brad Arkin, VP, Chief Secu-
rity Officer, Adobe
Tom Baltis, VP, Chief Infor-
mation Security Officer,
Blue Cross Blue Shield of
Michigan
Simon Benney, Rio Tinto
Steve Betts, Health Care
Service Corp.
Michael S. Brown, VP, Global
IT, ExxonMobil Global
Services Co.
Tony Buttrick, Flagstar Bank
Robert J. Casale, Massachu-
setts Mutual Life
Karen A. Chamberlain, West-
ern & Southern Financial
Paul Cheesbrough,
News Corp
Anil T. Cheriyan, SunTrust
Stephen Crowley, WEX Inc.
Richard Daniels, Kaiser
Permanente
Julia K. Davis, Aflac Inc.
Guillermo Diaz Jr., Cisco
Mandy Edwards, CBRE
Tarek El-Sadany, Unisys
Philip Fasano, AIG
Victor Fetter, LPL Financial
James Fowler, GE
Eric Friedman, Fitbit
Marc Frons, Deputy Head of
Technology and Senior
Vice President, Global
Head of Mobile Platforms,
News Corp
Randall Gaboriault, Christi-
ana Care Health System
Sven Gerjets, Time Warner
Cable Inc.
Michael E. Gioja, Paychex
Bruce Greer, VP, Strategic
Planning and IT, Olin
Matt Griffiths, Biogen
Celso Guiotoko, Nissan
Suren Gupta, EVP, Technol-
ogy and Strategic Ven-
tures, Allstate Insurance
Gil Hoffman, Mercy Health
Donald G. Imholz, Centene
Chris Isaacson, BATS
Guilda Javaheri, Golden
State Foods
Carol Juel, Synchrony
Manish Kapoor, NuStar
Gerhard Karba, Related Cos.
Deborah Kerr, Sabre Corp.
Justin Kershaw, Cargill Inc.
Dan Kieny, Black & Veatch
Stuart Kippelman, Platform
Specialty Products
David Kleidermacher, Chief
Security Officer,
BlackBerry
Sue Kozik, Group Health
Cooperative
THE WALL STREET JOURNAL.
3 Create operational
excellence
IT dial tone—services that
work, projects on budget,
planning makes sense—must
be consistent before you can
play at a higher level. If you
can’t get the basics right,
you don’t have credibility.
4 Become a
trusted adviser
Senior alignment is critical,
but also important is align-
ment in the second and third
layers of the organization.
Build relationships at all lev-
els between IT and business.
Practice radical transparency.
language and independently
validated standards for all
constituencies to assess
security.
4 Develop an NTSB
for cybersecurity
Create an entity that investi-
gates and analyzes incidents
for the purpose of sharing
lessons learned and develop-
ing new best practices for
security.
technology perspective and
how to enable that transfor-
mation.
3 Look outside for
inspiration
Avoid getting stuck in a
specific paradigm by looking
outside the company or
industry for ideas.
4 Focus on the client
Design thinking about
the products, the process
and technology to produce
value for the client.
Suresh Kumar, Bank of New
York Mellon Corp.
Madelyn Lankton, Travelers
Brian LeClaire, Humana Inc.
Brian Lillie, Equinix Inc.
Chad Lindbloom, C.H.
Robinson Worldwide Inc.
Brian Maloney, Chairman,
Americas, Tech Mahindra
Krish Mani, Jeld-Wen Inc.
Meg McCarthy, Executive
Vice President, Operations
and Technology, Aetna
Kathy McElligott, McKesson
James M. McGlennon,
Liberty Mutual Insurance
Kelvin McGrath, Asciano Ltd.
Paul Meller, Dow Jones & Co.
Vincent Melvin, Arrow
Electronics Inc.
Rich Mendola, Emory
University
Ross Meyercord, Salesforce
Todd Miner, VP, Corporate
Infrastructure, Yelp
Kumar Mishra, VP, Architec-
ture and IT Operations,
Nielsen Co.
Berni Mobley, Senior Vice
President, IT, SAS
Sheldon Monteiro,
SapientNitro
Luke Moranda, Options
Clearing Corp.
Anne Mullins, Lockheed
Martin Corp.
Pushpendu Pal, SVP, Phar-
macy Benefit Management
IT, CVS Health
Mike Parisi, Illinois Tool
Works Inc.
Edwina Payne, Zimmer
Biomet Holdings Inc.
Ravi Pendse, Brown
University
Steve Phillips, Avnet Inc.
Scott Pittman, Dell Inc.
Larry Quinlan, Deloitte
Matthew V.T. Ray, President,
HM Health Solutions
Craig Richardville, Carolinas
HealthCare System
Stuart Sackman, Corporate
Vice President, Global
Product and Technology,
Automatic Data
Processing Inc.
Trevor Schulze, Micron
Technology Inc.
Diane K. Schwarz, Textron
Wayne Shurts, Sysco Corp.
Mark Sims, Scotts Miracle-
Gro Co.
Sukhvinder Singh, Senior
Vice President, IT, Host
Hotels & Resorts Inc.
Joseph C. Spagnoletti,
Campbell Soup Co.
Scott Spradley, Hewlett-
Packard Enterprise
Adam Stanley, Cushman &
Wakefield
CO-CHAIRS
Michael Brown, Vice
President, Global Information
Technology, ExxonMobil
Global Services Co.
Guillermo Diaz Jr., Senior
Vice President and CIO,
Cisco Systems Inc.
Celso Yoshiyuki
Guiotoko, CIO and
Corporate Vice President,
Nissan Motor Co.
SUBJECT EXPERT
Garth Saloner, Philip H.
Knight Professor and Dean,
Graduate School of Business,
Stanford University
CO-CHAIRS
Karen Chamberlain,
Senior Vice President and
CIO, Western & Southern
Financial Group
Eric Friedman, CTO and
Co-Founder, Fitbit Inc.
David Kleidermacher, Chief
Security Officer,
BlackBerry
SUBJECT EXPERT
Andy Ozment, Assistant
Secretary, Office of Cyberse-
curity and Communications,
Department of Homeland
Security
CO-CHAIRS
Diane K. Schwarz, CIO and
Vice President, Textron Inc.
Creighton Warren, CIO, USG
SUBJECT EXPERT
Vish Krishnan, Professor,
Rady School of Management,
University of California,
San Diego
Tony Stoupas, Moody’s
Brad Strock, PayPal
Luis Taveras, Barnabas
Health
Denise Taylor, Westfield
Atticus Tysen, Intuit Inc.
Sankara Viswanathan, Day &
Zimmermann Group Inc.
Edward Wagoner, Jones
Lang LaSalle Inc.
Charles Wardrip, Kindred
Healthcare
Creighton Warren, USG Corp.
Yvonne Wassenaar,
New Relic
Mary Beth Westmoreland,
Blackbaud Inc.
Andrew Wilson, Accenture
Kevin Winter, Booz Allen
Hamilton Inc.
Philip R. Wiser, Hearst Corp.
Robert Worrall, Juniper
Networks Inc.
PARTICIPATING GUESTS
Jeremy Bailenson, Co-
Founder, Strivr Labs;
Director, Virtual Human
Interaction Lab, Stanford
University
Andy D. Bryant, Chairman,
Intel Corp.
Stewart Butterfield, Co-
Founder and CEO, Slack
Gam Dias, CEO and Co-
Founder, Mo-Data Inc.
Ben Golub, CEO, Docker
Gen. Michael Hayden,
Principal, Chertoff Group;
former Director, Central
Intelligence Agency;
former Director, National
Security Agency
Vish Krishnan, Professor,
Rady School of
Management, University
of California, San Diego
Dawn Lepore, former CEO,
Drugstore.com Inc.;
former CIO, Charles
Schwab
Aaron Levie, CEO, Co-
Founder, Chairman, Box
Hilary Mason, CEO and
Founder, Fast Forward
Labs
Andy Ozment, Assistant
Secretary, Office of Cyber-
security and Communica-
tions, Department of
Homeland Security
Tom Reilly, CEO, Cloudera
Garth Saloner, Philip H.
Knight Professor and
Dean, Stanford Graduate
School of Business
Peter Sondergaard, Senior
Vice President, Research,
Gartner Inc.
Andreas Weigend, Director,
Social Data Lab; former
Chief Scientist, Amazon
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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Recent Deloitte research reveals four key areas in which CIOs
should operate to lead their organizations effectively and create
successful careers. Read the 2015 Global CIO Survey to learn how
CIOs are creating impact and value today – and where their value
proposition is headed in the future. The survey of over 1,200 CIOs
and senior IT executives around the globe was conducted by
Deloitte’s CIO Program, representing our commitment to helping
advance the careers, contributions, and impact of CIOs worldwide.
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R4 | Wednesday, February 10, 2016 THE WALL STREET JOURNAL.

JOURNAL REPORT | CIO NETWORK

So, the good news is there’s a
lot of private-sector activity
‘The government, designed to keep us safe.
our government will Let me explain this another
way. When I think about a na-
be permanently tional-security problem, gener-
late for your ally my instincts are the gov-
ernment is the prime mover. If
cybersecurity.’ you’re into Civil War history,
Gen. Grant or Gen. Lee says,
“You, sir, your corps is the
main body. And you, gentle-
men, you will conform your
movements to the movements
of the main body.” In govern-
ment, I assumed that in cy-
berdefense, the main body was
the government, and you shall
it’s getting worse. Beyond that,
[people are trying] not just to
steal data, but to create ef-
fects. So you’ve got Stuxnet,
which is the destruction of a
thousand centrifuges at Na-
tanz in Iran. I view it as an un-
alloyed good, but it was done
using a weapon comprised of
ones and zeros to create physi-
cal destruction.
Leon Panetta spent a lot of
time in his last year or two in
government talking about cy-
ber Pearl Harbor, digital 9/11,
catastrophic attack. I don’t
think that’s what we have to
worry about. I’m not fright-
ened about the Chinese turn-
ing out all the lights east of
the Mississippi. I’m not wor-
ried about that superpower,
catastrophic attack.
I’m worried about the iso-
lated, nothing to lose, “Ah,
what the hell? Let’s go see
what happens,” nation state
who goes after a North Ameri-
can enterprise to create physi-
cal destruction to show that
they can. The Sony attack is
the poster child for that.

GENESIS PHOTOS/DOW JONES (3)

conform your movements with
the movements of the main
body. In the cyber domain, you
are the main body. What our
government has to teach itself
is that the government needs,
in all but a few exceptional
cases, to conform its move-
ments to the movements of the
main body, you.
Concerns and Constraints
Where companies are focusing their information-security efforts and
what's holding them back, according to an Ernst & Young survey
Percentage of Criminal syndicates 59%
respondents who
considered the following Employee 56%
to be among the most likely Hactivists 54%
sources of an attack
Lone-wolf hacker 43%

A Cyberwar Update
Gen. Michael Hayden says recent government
moves to protect cyberspace are too little, too late
We’re in a global cyberwar
in which our corporate secrets
are our chief prize. Are we up
for the fight?
To get a clearer answer,
The Wall Street Journal’s John
Bussey spoke with Gen. Mi-
chael Hayden, principal of
Chertoff Group and former di-
rector of the Central Intelli-
gence Agency and National Se-
curity Agency. Here are edited
excerpts of the discussion.
reveals that within any realis-
tic planning horizon, you are
largely responsible for your
own defense in the cyber do-
main.
The government, our gov-
ernment will be permanently
late for your cybersecurity.
Look, your armed forces view
cyber as a domain. Land, sea,
air, space, cyber. It’s a new do-
main. You and I have decided
that this domain is so wonder-
External contractor working on our site 36%
MR. BUSSEY: One of the things
that the private sector is doing State-sponsored attacker 35%
is to look again at encryption.
GEN. HAYDEN: The issue here is Percentage who ranked each of Percentage who said each of
end-to-end unbreakable en-
cryption, should American
the following a high, medium or
low priority for their organization
the following was among the
main obstacles or challenges
firms be allowed to create
such a thing. You’ve got Jim
over the coming 12 months for their information-security
operations
High Medium Low
Comey, the director of the FBI,
sis of government, and the
technology is going to move
saying, “I am really going to
suffer if I can’t read Tony So- 62%
much faster than any govern- prano’s email or if I’ve got to 33% Budget constraints
33% 56% 55%
ment can move. Then we have ask Tony for the PIN number
not yet decided what it is we
want or what it is we will al-
before I get to read Tony’s
emails.” I get it. There is an
11% 12% 57%
Data leakage/ Business continuity/ Lack of skilled resources
low the government to keep us unarguable downside to un-
data loss disaster recovery
safe. You’re going to have to breakable encryption. On the
32%
prevention resilience
be responsible for your safety other side is the question: On
[in the cyber domain] in a way balance, is America more or Lack of executive
in which you have not been re- less secure with unbreakable awareness or support
41% 45%
quired to be responsible for end-to-end encryption, regard- 47% 44%
your safety [in the physical do- less of whether Jim can read

It’s up to you
MR. BUSSEY: We got some
news last month. There’s some
legislation meant to increase
cooperation between the gov-
ernment and business. Tell us
about the bill and whether or
not it helps CIOs protect cor-
porate secrets.
GEN. HAYDEN: We’re talking
about CISA, the Cybersecurity
Information Sharing Act. Good
news, a step in the right direc-
tion. But it’s too long in com-
ing, it’s too small a step. And it
ful, empowering, we’re going
to take things we used to keep
down here in a safe, in a
drawer, in a wallet, and put it
up here where it’s largely un-
defended. This is the largest
ungoverned space in recorded
human history. There is no
rule of law up here.
As taxpayers, you and I are
going to want our government
to defend us up here the way
we have become accustomed
to relying on the government
for defending us down here.
But there’s the general sclero-
main] since the closing of the
American frontier in 1890.
Tony’s emails?
I think Jim Comey’s wrong.
12% 11% 28%
Identity and Security Lack of quality tools for
Jim’s logic is based on the be- access awareness managing information security
Who follows whom? lief that he remains the main management and training
MR. BUSSEY: It does seem that body and you should accom-
before the war on cybersecu-
rity can be fought as a nation,
modate your movements to the
movements of him, which is
28%
44% 44% Management and
we have to resolve the civil the main body. And I’m telling 44% 41% governance issues
war internally over privacy. you, with regard to the cyber
GEN. HAYDEN: Yeah. And that’s domain, he’s not. You are. 12% 15%
a multigenerational thing. We Incident Security operations 23%
haven’t arrived at a national MR. BUSSEY: Tell us how the response (e.g., antivirus, patching, Fragmentation of
consensus. In the American landscape of threat is evolving capabilities encryption) compliance/regulation
system, when the government or changing.
Source: Ernst & Young's Global Information Security Survey 2015, a survey of 1,755 CIOs and
doesn’t show up, we generally GEN. HAYDEN: The stealing- other executives involved in information security in 67 countries, conducted in person and
pick up the burden ourselves. your-data stuff is there, and online between June and September 2015. THE WALL STREET JOURNAL.

The Direction of the Cloud

the system to share this infor-
mation. We’re also building
’This is a risk and the governance mechanisms,
you can manage it. the trust groups where if you
Can you eliminate it?
don’t want to talk directly to
us, you want to talk in a trust
Aaron Levie says the market is still very young
Of course not.’ group, your trust group can Cloud computing, where
then share the information to companies sell shared access
the government. So, you’re al- to software or computing ‘We live in a world
ready anonymized. And, obvi- power that can be used over that is going to
ously, if you do share with us, the Internet, is changing the
we’ll anonymize it before we way businesses work. be incredibly
push it back out. Aaron Levie, co-founder heterogeneous.’
and CEO of Box Inc., a pro-
MS. BLUMENSTEIN: We’ve vider of online storage and
heard a lot of defeatism today collaboration tools that allow
about all the different actors employees to access and
in cybersecurity who are get- share files from any device,
ting increasingly more sophis- sat down with The Wall Street
ticated. Is there a reason to be Journal’s global technology
hopeful that companies can editor, Jonathan Krim, to dis-
protect themselves? cuss what this shift means.
Information Sharing MR. OZMENT: Absolutely. This
is a risk and you can manage
it. Can you eliminate it? Of
Here are edited excerpts.

The layer between

And Cybersecurity course not. But you manage
them all day, every day. It’s
like we got a credit card from
MR. KRIM: You have said the
market for cloud services is
still young. But it seems al-
data centers and large-scale
computing environments,
ware as a service] world.

Andy Ozment on the potential the Internet revolution 20

impact of new legislation
Among other goals, the Cy-
bersecurity Information Shar-
ing Act aims to foster closer
cooperation between govern-
ment and the corporate sector.
Under the act, passed in De-
cember and due to take effect
soon, Washington will share
information with businesses
about cyberthreats and give
companies protection from li-
ability when sharing informa-
tion with the government.
To get a picture of the
changing landscape, The Wall
Street Journal’s Rebecca Blu-
menstein spoke with Andy Oz-
ment, assistant secretary, Of-
fice of Cybersecurity and
Communications, in the De-
partment of Homeland Secu-
rity. Here are edited excerpts
of the conversation.
The legislative front
MS. BLUMENSTEIN: Can you ex-
plain what the Cybersecurity
Act is and why it’s significant?
MR. OZMENT: It took a while
for policy makers to wrap
their heads around informa-
tion sharing. What do we even
mean by that? The first thing
to emphasize about this legis-
lation is it’s about indicators,
not incidents.
What’s an indicator? It’s a
“be on the lookout.” Be on the
lookout for this IP address,
this phishing email, you name
it. That’s what we’re talking
about.
MS. BLUMENSTEIN: There’s also
shared liability, right?
MR. OZMENT: The idea is liabil-
ity protection for you. Why
did you have liability in the
first place? Most of the laws
that would have given you lia-
bility here were intended as
privacy laws for consumers.
This bill says if you’re sharing
this information for cyberse-
curity purposes, you’re pro-
tected against liability.
MS. BLUMENSTEIN: The private
sector has been reluctant to
work closely with the federal
government. Do you think that
this is going to be a tough
sale?
MR. OZMENT: We’re making
progress. I have to somewhat
limit my selling of this be-
cause we have done this ex-
tremely rapidly.
We don’t want to start on
day one with a million compa-
nies. We want to start on day
one with a small number of
companies, get them happy,
scale from there. We have a
lot of companies who are ea-
gerly talking.
And so part of what we’re
doing here is not just building
years ago, and we’ve been
ready to be hyper-coalescing
around two or three players.
buying stuff. We haven’t paid
our monthly bill for security.
Is that where you see it going?
MR. LEVIE: Amazon got into
So we have debt racked up. the space first, and they have
But we already see sectors this amazing sort of competi-
that have been putting time tive advantage because they
and attention and resources see all of the new developer
into this for six, eight years problems before anybody else
are doing pretty darn well. Do does. But when you actually
they still get breached? Abso- look at the public cloud mar-
lutely. But they catch it ket relative to the entire com-
quickly and they contain it. puting space, it’s still a very,
We can all get to that space. very small portion of total
spending. So yes, we are see-
The malicious players ing who some of the names
MS. BLUMENSTEIN: Can we might be, but when you’re
take a step back and look at looking out five or 10 years
the whole cyberthreat land- from now, the space is going
scape? What is the biggest to look very different in terms
threat right now? of who’s taking the lead.
MR. OZMENT: I bucket the
threats into vandals, burglars, MR. KRIM: Let’s imagine that
thugs, spies and saboteurs. Microsoft, Google and maybe
Vandals are groups like Anon- Amazon are your cloud op-
ymous who are trying to have tions. Why can’t they provide
a reputation impact on you. the services that you provide?
Burglars, they’re after money. MR. LEVIE: There was a really
Thugs are a little more com- good article in TechCrunch a
plicated. They just want to few weeks ago called “The
punch you. The North Korean Stack Fallacy,” and it was
attack on Sony Pictures is about why it’s so hard for
that. Spies want either na- companies to move up the
tional secrets or your intellec- stack, [into a different layer
tual property. And they want of the market,] in terms of
to use it obviously to the ad- their technology products.
vantage of their nation. Sabo- When you move up the
teurs are an area we’re con- stack, you tend to be dealing
cerned about. This is where a with a very different set of
nation-state or other adver- customers, and people, and
sary gets into our critical in- individuals using your prod-
frastructure and waits for a ucts. And so, if you’re building
time of conflict. infrastructure, large-scale
that’s a very, very different
problem than building busi-
ness applications.
MR. KRIM: But isn’t that what
Google has done with Docs
and Sheets, and those things?
MR. LEVIE: In terms of end-
user productivity tools, abso-
lutely. But in terms of actual
systems that are going to
work across an entire enter-
prise to help you manage,
share, store, collaborate
around, add workflow to all of
your data—we think that’s
just a very different problem.
We live in a world that is
going to be incredibly hetero-
geneous. There are going to
be a lot of different kinds of
systems. And as the world
gets more heterogeneous, you
actually need different plat-
forms in different parts of the
stack to be agnostic to the
other kinds of applications
that you’re using.
That is largely what our
role is at Box. One day you
might be using Office, the
next day you might be using
Google Docs, the next day you
might be using Adobe, the
next day you might want to
access files from Salesforce.
You need something that’s go-
ing to be able to broker how
you do all of that sharing, and
all of that organization of
your information. We sort of
live in between the infrastruc-
ture world and the SaaS [soft-
Opening up
MR. KRIM: We asked the CIOs
here if, as they migrate appli-
cations to the cloud, they see
themselves using multiple
vendors for various applica-
tions or going with a more in-
tegrated solution. Overwhelm-
ingly they said multiple
vendors. What do you say?
MR. LEVIE: In the cloud model,
you no longer have the tech-
nological reason to require
products to come from the
same vendor. Assuming you
have at least a federated secu-
rity model, a federated ana-
lytics and identity-manage-
ment model, the cost of
working with multiple ven-
dors has gone down precipi-
tously. And being able to get
best-of-breed applications at
each layer of the stack is go-
ing to drive far more innova-
tion within the IT sector.
Even the biggest tech ven-
dors are recognizing that the
world is going to be heteroge-
neous, and they have to open
up to companies that other-
wise would be competitors.
Last week, Microsoft
opened up Office, so now you
can get access to all of your
Box files from Office on your
iPhone. You can do real-time,
collaborative editing with Of-
fice online. It’s shocking to
say this, but Microsoft has be-
come dramatically more open
than Google, just in the past
couple of years.
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.
Where Virtual
Reality Is Heading
Jeremy Bailenson says VR has the potential to
change the way users feel—and behave
Virtual reality is getting a
lot better at simulating the
real world. Just how good is it
going to get, and how fast?
And what’s the best way to de-
ploy the technology for con-
sumers and businesses alike?
The Wall Street Journal’s
Geoffrey A. Fowler spoke to
Jeremy Bailenson, co-founder
of Strivr Labs and director of
the Virtual Human Interaction
Lab at Stanford University.
Here are edited excerpts of
their discussion.
A new experience
MR. FOWLER: So what can VR
do that you can’t just do with
a computer screen?
MR. BAILENSON: My Ph.D. is in
cognitive psychology. And
what I study is how the brain
responds to virtual reality. It’s
all about your movement.
There’s a theory called embod-
ied cognition, which is people
learn by moving and doing
stuff. When VR is done well,
there are no gadgets. The in-
terface goes away. It’s as if
you’re in a space. You could
make somebody fly to the
The Language of the CIO
Andy Bryant on how chief information officers
need to hone their communications skills
Chief information officers
can sometimes feel as if they
are talking to a brick wall
when they make pleas for
more funding and new proj-
ects. Sometimes, it’s because
they need to improve their cor-
porate communications skills.
Wall Street Journal News
Editor Ted Greenwald talked
to Intel Corp. Chairman Andy
Bryant about how CIOs can
get their points across to
boards and fellow executives.
Edited excerpts follow.
MR. GREENWALD: As a former
chief financial officer, how
would you advise CIOs go
about building productive re-
lationships with their CFOs?
MR. BRYANT: Actually, you
could ask my CIO, and he may
say, “He’s not so good at that.”
In my time, I learned that CIOs
and CFOs almost don’t speak
the same language, until they
learn to work with each other.
One time, I had a CFO and a
CIO working for me, and I saw
them talking past each other.
Because the CIO would say, “If
we approve this project, I can
save, on our run rate spend-
ing, $10 million.” And the CFO
said, “I don’t believe it.”
They fought for a while.
And I looked at the CIO. I said:
“Simple question. Explain the
detail. How do you explain $10
million?”
[The CIO said:] “Well, in-
stead of having people take or-
ders, we can now have the ma-
chines take orders. And we
can save that cost.”
And I said, “So his [the
CFO’s] problem is, what hap-
pens to those people?”
[And the CIO says:] “Well,
what happens to those people
is they go to this other project
I want to work on.”
So the CFO looks at it and
says, “You didn’t save me any-
thing. All you did was fund a
project that I didn’t care
about. So now let’s talk about
how the savings comes, how
it’s going to be applied.”
You have to go beyond the
first-level analysis. But once
you realize you both are trying
MORE AT WSJ.COM/LEADERSHIPREPORT
n Stewart Butterfield, Slack CEO, says eventually all organizations
will use communications apps like Slack
n Peter Sondergaard, head of research at Gartner, on how
companies can make the most of their IT spending
n Ben Golub, Docker CEO, explains what digital containers are—
and who uses them
n Tom Reilly, CEO of Cloudera, talks about his company’s
challenges helping customers make the most of big data
JOURNAL REPORT | CIO NETWORK
moon. You could put them un-
derwater. We can do that in
VR, and the brain treats it as
real.
MR. FOWLER: How are some
businesses using this right
now?
MR. BAILENSON: This is going
to sound a little bit narcissis-
tic. But right now, probably
the only true B2B success of
VR where VR has migrated
from the living room to busi-
nesses at scale is in the
sports-training world. This
company, Strivr, that I co-
founded. There are over 75
systems being used across the
country in teams. They’re us-
ing it day to day where ath-
letes get to learn decision
making. They get to practice
plays. And fans get to experi-
ence these.
MR. FOWLER: In your lab,
you’ve been also working on a
number of other experiments
and programs for businesses.
What are some of them?
MR. BAILENSON: In 2003, a
woman approached me and
‘Help me understand
to do the right thing, you both
are very passionate about
what you do and you speak
just a little bit different lan-
guage, you get those two on
the same page, it’s amazing
what can be accomplished.
MR. GREENWALD: How can
CIOs demonstrate return on
investment?
MR. BRYANT: There are inter-
esting ways. For example, in
the example I just gave, they
could have said, “No, we’re go-
ing to actually save that money
by letting these folks leave to
different jobs, or we may do a
layoff, but we will have a real
savings.” You can actually find
real ways to save money and
document it. And then you can
come back to the CEO and say,
“These 100 people I saved, I’d
like to reinvest them.” Now,
that’s a new decision.
The CFO will say, “I got my
savings. And now the CEO’s
making a decision about a new
investment. I can live with
that one.”
The place it really gets hard
is what we used to call faith in-
vestments. I do believe you
have to have some faith invest-
ments. A CIO should, every now
and then, say, “You’re going to
have to trust me on this one.”
MR. GREENWALD: Let’s talk
about the CIO’s relationship
with the board. As a chairman,
and also as a member of sev-
Wednesday, February 10, 2016 | R5
said, “Can you build better di-
versity-training software?”
GENESIS PHOTOS/DOW JONES (2)
When I do diversity training, I
either sit in a room and I ‘In five years, being
watch actors do banter or I do fairly conservative,
an online driver’s-ed type
[thing]. It doesn’t make me it’s going to feel
think about women, issues of like you’re here’
race, in a way that’s compel-
ling. In VR in 2003, what we
did is you stood up, and you
put on this helmet, and you home and businesses to use VR longitudinal studies on the The home-run demo we
walked up to a virtual mirror, is becoming available. Help us planet in VR, and I’ve done have is called The Pit. It’s a
and you saw yourself in the imagine. What are some other two of them. Whenever we demo that we have developed
mirror. uses that folks might be trying look, VR lasts longer, say, than to treat fear of heights. [It’s
As a white male, I would be here? Are we talking about watching a video. We’ve done designed to seem like] a big
transformed into a woman of teleconferencing? studies where we force you in pit and we put a rickety plank
color. I would then experience MR. BAILENSON: My dream has virtual reality to cut down over it.
prejudice firsthand, meaning been to build a system that trees with the goal of teaching We had a gentleman. He
another avatar would walk in [lets you] feel present. I mean, you how to recycle paper. was a federal judge. He was
the room and would say horri- we’re here. We have eye con- What we’ve demonstrated, if probably in his late 60s. He
ble things to me about my tact. We shook hands. If I can you look at somebody a month probably weighed north of
race and about my gender. For perfect a virtual handshake, all out, they are still going be 280. And when he went up to
about 12 years now, we’ve these women and men who more conservation minded. The Pit, he virtually took a
been running study after study flew here, they wouldn’t need They’ll actually use less paper wrong step, fell off the plank.
showing that feeling discrimi- to fly here. later on. And the gentleman literally,
nation firsthand while walking In five years, being fairly because he was terrified, dove
a mile in someone else’s shoes conservative, it’s going to feel MR. FOWLER: So cutting down at a 45-degree angle to try to
is a better way to change atti- like you’re here. My one-liner a virtual tree makes you buy catch the lip of the plank. In
tudes and behavior. is, “You should travel when less toilet paper? front of a room of 300 judges
you want to, not when you MR. BAILENSON: It makes you and lawyers.
MR. FOWLER: The equipment have to.” We can build avatar use less paper in your daily But it gets worse. His face
that allows consumers at systems that replicate what I life when we track it unobtru- was going right toward a
call the virtual handshake. sively. sharp corner. He completely
There’s all sorts of wonderful forgot he was in the physical
things that’ll happen. MR. FOWLER: The technology room. So in one move, I had to
has gotten a lot better even in dive and knock him down to
Lasting effect? the last year. But it still redirect his trajectory. It was a
MR. FOWLER: The premise of a
lot of what you’ve been telling
us is that a VR experience is
doesn’t feel like I’m in this
room. It feels like I am looking
through a screen.
really big deal. No one got
hurt. No one got sued.
going to do something that
you couldn’t do in the real
MR. BAILENSON: I don’t think
you’ve done great VR. When
MR. FOWLER: Doesn’t VR have
equally large or even maybe
world and have a lasting im-
pact on your brain. The way
VR’s done well, you have this
experience called presence.
greater potential for evil? Be-
cause you are totally control-
you think, the way you make And let me just push a little ling someone’s experience.
decisions. How long can that bit about that. MR. BAILENSON: VR is no dif-
impact really last? In 2001, I presented to the ferent than the written word
again what the MR. BAILENSON: The longitudi- Federal Judicial Center, a or video. It can be used for
nal study, seeing how long bunch of federal lawyers and wonderful purposes. Or it can
problem is. these effects last, it’s hard to judges, about how to use VR in be used for evil. And it’s up to
But you started do. There have only been three the courtroom. us to do the right thing.
by trying to
blackmail me.’
eral other boards, what advice
would you give to CIOs looking
to strengthen that relationship?
MR. BRYANT: I’m going to start
with a negative. What I typi-
cally see from the boards I’m
on is the CIO comes in and
says, “If you don’t give me this,
we will die. It’s over.” And you
just kind of say, “Wow, that’s a
big statement. Let’s go through
this in some detail.”
And they say, “Look, I need
X dollars. And if you don’t
give me the X dollars, we’re
going to be breached. When
we’re breached, the penalties
will be enormous.” And you
say, “OK, if I give you X dol-
lars, then we won’t be
breached?” No sensible CIO is
ever going to say, “Well, yeah,
we still will be.”
Help me understand again
what the problem is. But you
started by trying to blackmail
me. Don’t do that. You’ve made
it a budget pitch. Don’t do that.
Come in to me and say, “Look.
First, I’m going to educate you.
Here is what we do. Here are
the problems we’re solving.
Here are some things we’re
worried about. Here’s the mag-
nitude of those. And by the
way, yeah, we’re going to even-
tually be breached. However,
there are some inexpensive
things we can do to help and
some expensive things. Let’s
talk about those.”
MR. GREENWALD: Should
boards include the CIO?
MR. BRYANT: Yes. If I’m design-
ing a board in today’s world,
to have CIO knowledge is im-
portant. And by the way, we
don’t have one. We have peo-
ple who are in enterprise-type
solutions. So we have people,
I’ll say, on the periphery. But
based on today’s world, I
would say yes. I would also
say I want that CIO on my
board to be a business strate-
gist as well as a CIO. You have
to be both. I want somebody
who can take that capability,
understand the business strat-
egy that goes with it, and help
me figure out how to get
through some of these waters.
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