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PERSONAL JOURNAL | D1
DJIA 17417.27 À 165.65 1.0%
Amazon
What’s Seeks to
News Ease Ties
Business & Finance
With UPS
U PS’s ties to Amazon
have come under strain,
with the retailer looking to
alternative delivery routes
as volume and costs rise. A1
 Altice’s plan to buy Cable-
vision is running into turbu-
lence in New York, where
city officials have voiced
concerns about the deal. B1
 Some traders are betting
on oil by investing in energy
firms and the currencies of
oil-producing nations instead
of the commodity itself. C1
 A gauge of price swings
in the Treasury market has
fallen, the latest sign investors
are skeptical the Fed will re-
peatedly raise rates in 2016. C1
 Sprint paid a small team
of consultants at least $25
million for advice that
largely was never used. B1
 The U.S. economy grew at
a 2% annual rate in the third
quarter, driven by a 3% rise
in consumer spending. A2
 Existing-home sales fell
10.5% last month amid delays
caused by new mortgage
rules and tight inventory. A2
 The Dow advanced
165.65 points to 17417.27 in
light preholiday volume as
commodity prices rose. C4
 Boeing agreed to a
sweeping settlement with
the FAA over supplier over-
sight and quality controls. B3
 Ford is pursuing a deal
with Google to build self-
driving cars that use the soft-
ware firm’s technologies. B2
World-Wide
 Iraqi troops backed by
U.S.-led airstrikes pushed to
retake the center of Ramadi,
which has been under Islamic
State control since May. A1
 Two inspection firms
flagged safety risks at a
landfill in China in the year
before it collapsed and
triggered a landslide. A7
 Sepp Blatter said in an
interview that he has fin-
ished his work in soccer, a
day after receiving an
eight-year ban from FIFA. A1
 Afghanistan is again
becoming a haven for ex-
tremist groups, due in part
to inadequate surveillance,
according to officials. A8
 The populations of big
Sunbelt states grew this
year amid a migration
shift that will help shape
the presidential election. A2
 Trump’s tax plan would
reduce federal revenue by
$9.5 trillion over a decade,
according to an analysis. A4
 Brazil is battling a virus
some officials are linking
to thousands of cases of in-
fant brain damage and 40
related deaths this year. A9
 Thousands of migrants
may be stranded in Greece
this winter as its neighbors
tighten their borders. A14
 The U.S. slapped fresh
sanctions on Ukrainian and
Russian businessmen and
politicians close to Putin. A8
CONTENTS
Business News.. B1-8
Crossword................. B8
Global Finance........ C3
Heard on Street. C10
Home & Digital. D2-3
In the Markets....... C4
s Copyright 2015 Dow Jones &
Company. All Rights Reserved
NASDAQ 5001.11 À 0.65%
Opinion............... A11-13
Property Report C8-9
Sports.......................... D6
Technology................ B5
U.S. News............. A2-6
Weather..................... B8
World News. A7-9,14
> months a year to
Cold Mug
Becomes Hot
Holiday Gift
BUSINESS & TECH. | B1
* * * * * * WEDNESDAY, DECEMBER 23, 2015 ~ VOL. CCLXVI NO. 148 WSJ.com HHHH $3.00
STOXX 600 356.87 g 0.1% 10-YR. TREAS. g 12/32 , yield 2.239% OIL (new) $36.14 À $0.33 GOLD $1,074.80 g $7.10 EURO $1.0958 YEN 121.07
Accused Army Deserter Faces Military Judge
Iraqis
Push to
Retake
BY LAURA STEVENS
AND GREG BENSINGER Militant
As the clock counts down to
Christmas, workers at United
Parcel Service Inc. are busy hus-
tling packages along loading
Hotbed
docks and conveyor belts at its A new offensive aims
Louisville, Ky., hub—part of a
costly, intricate system built in to drive Islamic State
part to cater to Amazon.com from the center of key
Inc., its biggest customer.
But the symbiotic relation- provincial city Ramadi
ship between the two giants has
come under increasing strain, Iraqi troops made a new
according to interviews with push to retake the center of Ra-
more than a dozen current and madi, a strategic city close to
former UPS and Amazon execu- the capital, Baghdad, that has
tives. been under Islamic State con-
Rising package volumes and trol since May.
costs have Amazon seeking al-
ternative delivery routes—shift- By Ghassan Adnan in
ANDREW CRAFT/THE FAYETTEVILLE OBSERVER/ASSOCIATED PRESS
ing the online retailer’s role Baghdad and Matt
from key ally to a potentially Bradley in Beirut
disruptive competitor.
Amazon has held talks with Iraqi army units and Ameri-
air-cargo companies to lease air- can-trained counterterrorism
planes and build its own freight forces, backed by U.S.-led air-
operation. The company is al- strikes, attempted to advance
ready using its own trucks, driv- from three directions Tuesday
ers and a fleet of couriers for on a former government com-
the final and most-expensive leg pound in the city center, said
of an order’s trip. Sabah Karhout, a top provincial
It has been making its own official.
deliveries in certain high-density The military launched a
regions and relying more heavily counteroffensive to retake Ra-
on the U.S. Postal Service. Even- madi a month ago, and has
tually, it hopes to get drones to since recaptured a western dis-
drop packages into backyards. trict and the provincial military
Such steps are part of a much SERIOUS CHARGES: U.S. Army Sgt. Bowe Bergdahl, who disappeared in Afghanistan in 2009 and command headquarters near
Please see UPS page A6 was held by the Taliban for five years, was arraigned in a military court Tuesday following the the city center. The presence of
Army’s decision to try him on charges of desertion and misbehavior before the enemy. A6 hundreds of civilians in the city,
 Postal Service makes gains in however, has caused weeks of
holiday deliveries..................... B4 delay in the start of the assault
to retake control of the entire
city, according to Iraqi military
Population Shift officers.
Highest rates of net migration
per 1,000 residents,
THE TROUBLE WITH The loss of Ramadi, the capi-
tal of Anbar province some 60
miles west of Baghdad, was a
July 2014–15*
Florida
North Dakota
+16.5
15.7
SOVEREIGN FUNDS stinging blow for the central
government. But in recent
months, Islamic State has suf-
fered a string of defeats else-
Nevada 13.0 Financial vehicles swell in size—and debt—raising global concerns where at the hands of Iraqi se-
Colorado 12.5 curity forces and allied
paramilitary groups and those
D.C. 12.4 Kazakhstan’s $55 billion sov- Funds like Samruk are at a forces hope to keep up that mo-
By Simon Clark
South Carolina 10.8 ereign-wealth fund helped pull critical juncture. For years, mentum by recapturing Ramadi.
in London, Mia Lamar
Oregon 10.7 the country through the global sovereign-wealth funds—finan- “Victory in Ramadi means a
in Hong Kong
financial crisis and offered cial vehicles owned by govern- victory for Iraqi security
Texas 10.0 and Bradley Hope
funding for the country’s bid to ments—swelled in size and forces,” said Brig. Gen. Yehya
Washington 9.7 host the 2022 Winter Olympics. in New York number, fueled by rising oil Rasool, an Iraqi military spokes-
Arizona 9.3 But the collapse in oil prices prices and leaders’ aspirations man. “It means that our forces
has hit Kazakhstan and its fund, Samruk-Ka- to increase economic growth, invest abroad have the initiative now, and our
*includes international
and domestic migration zyna JSC, hard. In October, the fund bor- and boost political influence. A new wave of forces will now lead the fight
Source: U.S. Census Bureau rowed $1.5 billion in its first syndicated loan sovereign funds came from African coun- everywhere.”
THE WALL STREET JOURNAL. to help a cash-strapped subsidiary saddled tries like Ghana and Angola. Asian nations Tuesday’s ground offensive
MOVING: Sunbelt states have with a troubled oil-field investment. joined in with funds like 1Malaysia Develop- began at 6:30 a.m. local time,
gained people, a change with “Our oil company lost lots of its reve- ment Bhd., or 1MDB. Please see RAMADI page A8
implications for the election. A2 nues,” says the fund’s chief executive, Um- The world’s sovereign-wealth funds together
irzak Shukeyev. “Currently, we are trying to have assets of $7.2 trillion, according to the  Diminished surveillance aids
adjust to the situation.” Please see FUNDS page A10 extremists in Afghanistan... A8
You Can Lead Horse Fans to Beer, Tarnished
But Can You Make Them Drink?
Soccer Boss
SO YOU SAY
i i i
system configurations. Customer results may vary.
©2015 SAP SE.All rights reserved. Results based on specific
Struggling sales can’t stop brewer’s Defends Self,
YOU CAN SEE
famous Clydesdales; never tried a Bud Blames Allies
THE FUTURE.
BY TRIPP MICKLE neighborhood. He and 175 of BY JOSHUA ROBINSON
his friends also star in com-
WITH THAT
ATLANTA—On a warm De- mercials, most recently clomp- ZURICH—Unshaven, shirt
cember afternoon, Chuck’s 6- ing down a dusty street to a open, a khaki-colored Band-
foot frame had him towering military-style march of “Deck Aid fitted below his right eye,
over the crowd outside a re- the Halls” in this year’s holi- Sepp Blatter leaned forward in
DATABASE?
cently opened Total day spot. They’re on a his pink upholstered armchair.
Wine store. His eyes mission: Get more Just one day after receiving an
scanned the parking people drinking Bud- eight-year ban from FIFA, he
lot as he waited for weiser. made a statement many in the
his friends. And therein lies the world have been waiting to
But Chuck isn’t problem. What does a hear.
your everyday booze big horse with broad “I’ve finished my work in
DON’T BE DATA BASIC.
®
hound. shoulders and white- football,” he said.
SAP HANA is a modern, open platform
that speeds up transactions and analytics.
Chuck is a Clydes- fringed hoofs have to Though the 79-year-old Mr.
dale. do with beer? Blatter plans to appeal the ban With one version of the truth and near zero
A Budweiser To many fans, the imposed by FIFA’s ethics com- aggregates for real-time decision making.
Find out why customers are transforming
Clydesdale, in fact. His beer isn’t the point. “I mittee and says he had no
job is traveling 10 don’t even drink,” said knowledge of wrongdoing in- their business with SAP HANA.
Lisa Kidd, who started side FIFA and its member con- sap.com/beyonddatabase
places like South Da- A Bud a Clydesdale Facebook federations, his 18-year reign
kota’s Sturgis Motor- Clydesdale page. But “the horses over global soccer is over. In
cycle Rally, Fort speak to me.” an interview with The Wall
Worth’s black-tie Sky Ball That is what makes Jorn Street Journal at the Dolder
fundraiser or the Total Wine Socquet’s job as Anheuser- Waldhaus hotel in the hills
near this city’s tony Buckhead Please see HORSES page A10 Please see FIFA page A9
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, December 23, 2015 * *** THE WALL STREET JOURNAL.

U.S. NEWS
Sunbelt Growth May Shape Election
BY JANET ADAMY have had three million more
AND PAUL OVERBERG Southern Comfort U.S. population change* babies since 2007.
Many sun-soaked states saw over previous year Seven states shrank over
The populations of big Sun- their populations increase this 1.0% the past year—Illinois, West
belt states bulged this past year while the overall growth 2015: 0.8% Virginia, Connecticut, Missis-
0.9
year while pockets of the Mid- of the U.S. was sluggish, sippi, Maine, Vermont and
west and Northeast declined, 0.8 New Mexico—continuing a
Census Bureau figures show.
accelerating a migration shift There were 321.4 million 0.7 yearslong demographic shift
that will help shape who cap- people in America as of July 1. from the Midwest and North-
2005 ’10
tures the White House in 2016. east to the South and West.
Census Bureau figures re- Population change by state This past year, the North-
leased Tuesday, which tally 2014–15 -0.5% 0 0.5 1 1.5 2 2.5 east and Midwest together lost
state-by-state population 563,000 people to the South
changes in the 12 months Biggest increase: N.D., 2.3% Biggest and West. This flow has risen
ended July 1, show how key Wash. decrease: more than 60% from 2011.
W.Va.
swing states in the 2016 elec- Mont. N.D. Minn. -0.3% Vt. Maine As a result, Arizona grew to
tion are growing. Florida, Ore. N.H. top Massachusetts as the 14th-
Idaho S.D. Wis. N.Y.
North Carolina, Arizona and Wyo. Mich. largest state. Demographers
Nevada all notched notable Pa. predict the growing number of
Nev. Neb. Iowa
gains in population. Utah Ill. Ind. Ohio Mass. minorities in Arizona could
Which political party that Colo. W.Va. Va. eventually turn the state from
Calif. Kan. Mo. Ky. R.I.
helps most varies by state and N.C. Conn. red to blue, although that is
Tenn.
remains in flux. In general, Ariz. Okla. Ark. N.J. unlikely to happen by 2016.
N.M. S.C.
Democrats see a 2016 advan- Ala. Ga. Del. The rare Midwest bright
tage in the fact that many of Miss. Md. spot continues to be North Da-
Texas La.
GIRARD-PERREGAUX GP03300-0044, SELF-WINDING MECHANICAL MOVEMENT these states are gaining minor- D.C. kota, which grew at the fastest
Fla.
HOUR, MINUTE, SMALL SECOND AND DATE ities who traditionally lean Alaska rate in the nation for the
35.40 X 30.40 MM PINK GOLD CASE SET WITH 62 DIAMONDS disproportionately toward fourth consecutive year thanks
SAPPHIRE CRYSTAL CASE-BACK Democratic candidates. *Numbers as of July 1 of each year; data to the draw of oil industry
ALLIGATOR STRAP WITH PINK GOLD FOLDING BUCKLE But after 2020, Republicans Hawaii prior to 2010 taken from estimates in 2009 jobs. Its population rose 2.3%.
may benefit because red Source: U.S. Census Bureau THE WALL STREET JOURNAL. The number of immigrants
states, led by Texas, are pro- coming to the U.S. edged up
jected to gain a chunk of elec- publican nominee Mitt Rom- margin, but an influx of Afri- slightly to about 1.1 million in
toral votes during the once-a- ney, but the bulging Hispanic can-Americans there in recent the last year, a jump from just
www.girard-perregaux.com decade reapportioning of population helped President years make Democrats hopeful four years ago when it had
House seats and Electoral Col- Barack Obama take the state, they can capture it next year. dipped to about 900,000. Half
lege votes. said William Frey, a demogra- Total U.S. population landed in four states: Califor-
For the first time in nearly pher at the Brookings Institu- growth, at 0.79%, remained nia, New York, Texas and Flor-
a decade, Florida gained more tion in Washington. sluggish, inching up to 321.4 ida.
people than California this How those residents and million, about the same rate of In California, which re-
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
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year. Adding 365,703 people— new voters behave in 2016 is growth as the prior year. In mained the most populous
I fly Sentient Jet. more than 1,000 a day—
bumped Florida’s total popula-
likely to shift if one of two
2016 GOP presidential candi-
2007, just before the recession,
it grew by almost 1%.
state with 39.1 million people,
waves of Mexican immigrants
tion to 20.27 million. dates from Florida, former A major factor is that many are being replaced by Asians.
877.845.0055 Almost a third of Florida’s Gov. Jeb Bush or Sen. Marco women who put off having ba- The Golden State added
new residents were immi- Rubio, gets the nomination. bies during the recession ha- 180,000 immigrants last year,
sentient.com grants, with Census Bureau es- North Carolina also saw big ven’t gone ahead with those 23% more than in 2011.
timates released this fall population gains, adding plans as the economy im- Separate Census Bureau es-
showing Cuba as the top 102,415 people to surpass the proved. There were 7.6% fewer timates released this fall peg
source recently. 10 million mark for the first births than in 2007, even California’s biggest sources of
Democrats won the 2012 time. High-tech jobs in the so- though there are now more immigrants for 2011-14 com-
presidential race in Florida by called research triangle region women of childbearing age, ac- bined as China and Taiwan, at
about a 1% margin, and how near Raleigh and Durham have cording to Kenneth Johnson, a 73,000 people; India, at 61,000
the latest population figures made the state a draw for job demographer at the University people; and the Philippines, at
affect that state’s vote is diffi- seekers, while its mild climate of New Hampshire. 42,000 people. About 24,000
cult to pin down. The retirees attracts retirees. Mr. Johnson estimated that people came from Mexico, just
who flocked there in recent Republicans won North Car- if prerecession fertility levels slightly more than the number
years voted strongly for Re- olina in 2012 by about a 2% had held up, women would from Vietnam.

Consumer, Business Caution HomeSales

Keeps GDP Gains in Check Slide 10.5%
BY ANNA LOUIE SUSSMAN
AmidDelay
As the U.S. economy wraps
up another year of modest, if
In Closings
NewYork today, L.A. tomorrow, then home to Connecticut...
unspectacular growth, Ameri- BY HARRIET TORRY
can consumers and businesses
My life is always on the go, but I wouldn’t have it any other
are playing a game of chicken WASHINGTON—Sales of
CHARLIE RIEDEL/ASSOCIATED PRESS

way. In my line of work, you can’t afford delays or missed with each waiting for the other previously owned homes
opportunities. Whether getting to my next meeting or to spend first. plummeted in November as
making it home to the kids for bedtime, I am confident in my As of the third quarter, con- delays caused by new mort-
commitments. And for each and every opportunity... I’m there. sumers are picking up the gage rules and a dwindling
slack left behind by sluggish supply of residences on the
I fly to seize the moment. business investment. Gross do- market pushed down sales to a
I fly to make the most of my time. mestic product, the broadest level not seen since April 2014.
I fly Sentient Jet. measure of goods and services Existing-home sales fell
produced across the economy, 10.5% last month to a season-
Sensible, intelligent private aviation® advanced at a 2% seasonally Well-stocked shelves at Old Navy in Kansas City, Kan., last month. ally adjusted annualized rate of
adjusted annual rate in the 4.76 million, the National Asso-
third quarter, driven by a 3% that investment,” said Joel Prak- interest rates, could make such ciation of Realtors said Tues-
rise in consumer spending, the ken, senior managing director at purchases more expensive. day, well below the 5.32 million
Commerce Department said Macroeconomic Advisers LLC. “The Fed is optimistic the economists expected. The dou-
Tuesday. The agency last The July-through-September economy will continue to gain ble-digit decline was the sharp-
month had estimated third- reading marks a sharp slow- momentum, however, the cata- est since July 2010, when sales
quarter GDP growth of 2.1%. down from the second quarter’s lysts at this point remain un- took a hit from the expiration
Meanwhile, a strong dollar, 3.9% rate of expansion, reflect- clear,” said Lindsey Piegza, of a home-buyer tax credit.
low global commodities prices ing the drag from inventory chief economist at Stifel Eco- The NAR blamed the bulk of
and slowdowns in overseas drawdown and a deceleration in nomics. “Consumers remain the November decline on clos-
economies have weighed on ex- consumer and business spend- restrained by a lack of income ing delays caused by new fed-
ports and curbed business ing from the prior quarter. growth and businesses remain eral rules implemented by the
spending on factories and en- It’s unclear what will spark hesitant to invest amid grow- Consumer Financial Protection
ergy infrastructure. Tuesday’s breakout consumer demand or ing uncertainty and rising Bureau in October, although it
revisions showed a larger drag inspire companies to invest. health-care costs, themes not said rising home prices and
from private inventories than Despite steady job growth and easily shaken in the new year.” tight inventory continued to
previously estimated, as compa- low gasoline prices, many Rising interest rates will challenge potential buyers.
nies let their stockpiles dwindle. Americans feel constrained by also likely further boost the The new rules, prompted by
“Businesses have been reluc- modest wage growth and rap- dollar’s strength against other the 2010 Dodd-Frank financial
tant to commit to long-lived cap- idly rising costs for essentials currencies, a key headwind law, are meant to help con-
ital projects, and I’m thinking such as shelter and medical facing multinational firms. sumers better understand the
they’re not convinced that the care. Household spending on Nick Gangestad, chief finan- terms of their mortgages be-
future economy will validate services rose at a 2.1% pace in cial officer of 3M Co., said soft fore they sign. As the industry
the third quarter, with health demand in overseas markets adjusts, the changes have
THE WALL STREET JOURNAL care outlays alone accounting had a “notable impact” on its added about five days to the
(USPS 664-880) for 0.4 percentage point of the U.S. industrial business. The length of time to close home
(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) quarter’s GDP growth. weakness of foreign currencies sales, NAR chief economist
(Western Edition ISSN 0193-2241) And much of the discretionary against the dollar will also drag Lawrence Yun told reporters.
Editorial and publication headquarters:
1211 Avenue of the Americas, spending this year has been on down sales by 1% to 3% in 2016, Several realtors said pressure
New York, N.Y. 10036 big-ticket items like cars and he told analysts last week. on housing inventories is also
Published daily except Sundays and general
legal holidays. Periodicals postage paid at New
homes. Higher credit costs, driving the sales slump. The
York, N.Y., and other mailing offices. driven by the Federal Reserve’s  Ahead of the Tape: The number of existing homes for
POSTMASTER: Send address changes to The move to begin raising short-term economy’s big weakness..... C1 sale fell more than 3% on the
Wall Street Journal, 200 Burnett Rd., Chicopee,
MA 01020. month in November and was
All Advertising published in The Wall Street down nearly 2% on the year.
Journal is subject to the applicable rate card,
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Advertising Services Department, Dow Jones
CORRECTIONS  AMPLIFICATIONS “I think we’re still seeing a
fair amount of tightness in ac-
& Co. Inc., 1155 Avenue of the Americas, New
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right not to accept an advertiser’s order. Only Credit Suisse Group AG cusing UBS Group AG of raid- low Chief Economist Svenja
publication of an advertisement shall and Wells Fargo & Co. have ing its U.S. broker ranks Gudell, adding that first-time
constitute final acceptance of the advertiser’s
order. declined to comment on incorrectly referred to the buyers trying to enter the
Letters to the Editor: whether an arrangement they possibility of payment from market at a lower price point
Fax: 212-416-2891; email: wsj.ltrs@wsj.com
have making it easy for Credit Credit Suisse to Wells Fargo. are facing particular scarcity.
NEED ASSISTANCE WITH Suisse brokers to move to Housing prices have also
YOUR SUBSCRIPTION? Wells Fargo includes any pay- The Spanish political party climbed faster than wages in
CONTACT CUSTOMER SUPPORT. ment from Wells Fargo to Ciudadanos was misspelled as many markets, making it more
By web: customercenter.wsj.com Credit Suisse. In some editions Cuidadanos in a graphic with a difficult for first-time buyers
By email: wsjsupport@wsj.com Tuesday, an In the Markets ar- World News article Friday pre- to save for a down payment.
By phone: 1-800-JOURNAL ticle about Credit Suisse ac- viewing Spain’s elections. In November, the national
Bassano Jewelry New York, NY | Madison Jewelers New York, NY (1-800-568-7625)
Central Watch New York, NY | Desires by Mikolay Chappaqua, NY median home price rose to
Or by live chat at wsj.com/
Northeastern Fine Jewelry Albany & Schenectady, NY livechat Readers can alert The Wall Street Journal to any errors in news articles by $220,300, 6.3% higher than
emailing wsjcontact@wsj.com or by calling 888-410-2667. the same month last year.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Wednesday, December 23, 2015 | A3

U.S. NEWS

Coal Downturn Hammers State Budgets

With revenue plunging,
West Virginia and
Wyoming freeze hiring
and slash spending
BY KRIS MAHER
AND DAN FROSCH
VAN, W.Va.—Chris West has
given up on coal. In the past
year, the 42-year-old former
miner was laid off by a com-
pany that later filed for bank-
ruptcy and another that has
gone out of business.
Mr. West lives in a hilly re-
gion here where the conveyor
belts at mining complexes
have gone still, prompting lo-
cal governments to plan cuts
to schools, trash collection and
other services.
“Everything here is de-
pressed,” said Mr. West, who
lost his car after he couldn’t
make monthly payments and is
tion’s top two coal-producing
states, are also trying to make
ends meet. Amid a steep coal
downturn caused by competi-
tion with cheap natural gas,
lower overseas demand and
tougher environmental rules,
depressed coal-related tax
revenues are helping to
throw the finances of the two
states into turmoil.
Other big coal-producing
states, from Utah to Illinois to
Alabama, have lost jobs and
revenue, but a heavier depen-
dence on the commodity in
West Virginia and Wyoming is
linking the fates of two places
whose culture and geography
are vastly different.
In West Virginia, officials
project a $250 million state
budget deficit for the current
fiscal year, including $190 mil-
lion from plummeting coal-tax
revenue. Coal severance taxes
collected by the state are down
40% since July 1, compared

DAVID GOLDMAN/ASSOCIATED PRESS

struggling to put a daughter
through college. After training
for three months to be an
emergency medical technician,
he now makes $15 an hour,
40% less than his mining pay.
“I don’t see coal ever coming
back as strong as it was.”
The governors of West Vir-
ginia and Wyoming, the na-
with last year, as production
and prices fall.
“The state budget is under
tremendous pressure right
now,” said Gov. Earl Ray Tom-
blin. He has responded by cut-
ting spending at all state agen-
cies by 4%, except at the
Education Department, which
took a 1% cut. Gov. Tomblin, a Scott Tiller, a coal miner for 31 years, takes a break while working in a mine that is roughly 40 inches high in Welch, W.Va., this fall.
Democrat, froze hiring and
pay, and canceled this year’s production, while 94.5 million closing down some mines,”
©T&CO. 2015

In a Deep Hole holiday parties.
The biggest coal states have In Wyoming, Gov. Matt
seen output plunge in the wake Mead, a Republican, said this
of the financial crisis and the month that the state is facing
increasing availability of cheap a $159 million revenue short-
natural gas fall for the fiscal year 2016. He
announced a hiring freeze for
Coal production
state employees and has pro-
pct. change from a year earlier
posed $215 million of budget
West Virginia Wyoming cuts for the state’s coming
10%
two-year funding cycle. About
70% of the state’s general
5 funds are directly linked to en-
ergy production.
0 “It is certainly concerning
when so much of your revenue
–5 comes from these resources,”
Mr. Mead said. “There’s no
–10 question we’re going to
tighten our belt.”
–15 Wyoming, where immense
2002 ’10 surface coal mines with rela-
tively few miners dot the prai-
Note: 2015 data from Nov. 7. Change
from a year earlier is reflected as change rie, has yet to see widespread
from Nov. 7, 2014. layoffs. Through Dec. 12, the
Source: Energy Department state produced 349.1 million
THE WALL STREET JOURNAL. tons of coal, or 40.1% of U.S.
JudgeBarsProtestLeadersatBiggestMall
BY MARK PETERS ing order prohibiting a Black
Lives Matter movement pro-
A Minnesota judge barred test planned for Wednes-
three activists from the na- day and requiring organizers
tion’s largest shopping mall on to use social media to cancel
Tuesday as its lawyers looked the event.
to head off plans for a demon- Judge Karen Janisch in a
stration there against alleged ruling Tuesday issued the or-
police brutality to be held dur- der against activists Michael
ing the height of the holiday McDowell, Miski Noor and
shopping season. Kandance Montgomery. But
The Mall of America in re- the judge denied the mall’s re-
cent days filed a lawsuit re- quest for a broader order
tons, or 11%, were mined in
West Virginia.
In Wyoming, surface coal
production has dropped four
out of the past six years, fall-
ing from record production of
more than 462 million tons in
2008 to just over 383 million
tons in 2013.
“Given that coal is your best
horse, that is a major con-
cern,” said Robert Godby, di-
rector of the University of Wy-
oming’s Center for Energy
Economics and Public Policy.
In Gillette, a city of about
32,000 that sits in the heart of
Wyoming’s coal country,
nerves have been frayed about
the future of coal. But there is
also an unbending belief that
the region’s mines—which are
cheaper to extract coal from
than the capital-intensive un-
derground mines in West Vir-
ginia—will survive.
“I know back East, they are
Minneapolis that would re-
quire Facebook posts about
the protest to be deleted and
tweets sent out canceling the
event.
Susan Gaertner, a lawyer
for Mall of America, said the
ruling sends a message that
the mall is private property
and demonstrations aren’t
permitted. “That is a powerful
message that hopefully this
year will get through,“ she
said Mayor Louise Carter-King,
whose husband is a coal miner.
“But I do feel our coal will be
the last standing.”
Back in West Virginia, many
officials are bracing for a con-
tinuing decline. The state has
lost 7,000 coal-mining jobs
since 2011, and its jobless rate,
6.5%, is the second-highest in
the nation after New Mexico.
Boone County, where Mr.
West lives, has lost 2,700 coal-
mining jobs since 2011, the
most of any county in the U.S.
It took in $5.5 million in coal-
severance tax money in 2010.
That fell to $2 million last
year. The county’s budget this
fiscal year totals $13 million.
The county plans to end
free trash removal in January.
Other services have been cut,
and three of the county’s 10 el-
ementary schools will close
next year due to budget cuts LET OUR
and declining enrollment.
HOLIDAY EXPERTS FIND
A GIFT YOU SIMPLY
CANNOT WAIT TO GIVE
FOR COMPLIMENTARY PERSONAL SHOPPING SERVICES,
A lawyer for the activists PLEASE CALL US AT 888 546 5188 OR
didn’t immediately return a EMAIL PERSONALSHOPPING@TIFFANY.COM
call seeking comment. They
had argued in court that a re-
straining order would violate
free-speech protections.
The Black Lives Matter
movement grew out of last
year’s fatal shooting of Mi-
chael Brown, an unarmed, 18-
year-old black man, by a white
police officer in Ferguson, Mo.
It has expanded to cities FIFTH AVENUE & 57TH STREET | TIFFANY.COM

questing a temporary restrain- against Black Lives Matter said. across the country.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A4 | Wednesday, December 23, 2015 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.

U.S. NEWS

New Dynamic in New Hampshire Bush Tries

A Tougher
In a state that values
retail politics, Trump
is maintaining his lead
Tone With
despite few visits His Rivals
BY BETH REINHARD BY BETH REINHARD

BERLIN, N.H.—New Hamp- ALTON, N.H.—Republican

shire voters take their first-in- Jeb Bush started off his presi-
the-nation primary very seri- dential campaign describing
ously, ribbing their early- himself as a “joyful tortoise.”
voting compatriots in the As voters leaned toward politi-
Midwest with the expression, cal outsiders, he dubbed him-
“In Iowa, they pick corn. Here, self a “disrupter.” Then he em-
we pick presidents.” phasized competence and went
But now, the success of on the “Jeb Can Fix It” tour.
Donald Trump, who has Mr. Bush’s latest incarna-
topped polls of Republicans tion: Trump slayer.
here for nearly five straight Inspired by his confronta-
months, is unnerving those tional approach in last week’s
who cherish the small state’s debate toward front-runner
tradition of shoe-leather cam- Donald Trump, Mr. Bush is
paigns, with candidates trek- seeking to revive his campaign
king from bingo hall to barn- by repositioning himself as the
yard to answer policy New York businessman’s lead-
GRETCHEN ERTL/REUTERS

questions from voters. ing nemesis.

The New York businessman He also is accusing his rivals
has held only 23 events in the of being “intimidated” by Mr.
state this year, according to Trump. A new campaign video
the New England Cable News mocks Florida Sen. Marco Ru-
candidate tracker—even fewer bio, New Jersey Gov. Chris
than former rivals Scott Republican candidate Jeb Bush, a frequent visitor to New Hampshire, speaking at a town-hall meeting in Exeter, N.H., on Saturday. Christie and Texas Sen. Ted
Walker and Rick Perry, who Cruz—who are better posi-
dropped out of the race during the Feb. 9 primary. owned a vacation home in the Ted Cruz for second place in he said, “We’ll get to you in a tioned to win over Mr. Trump’s
September. Corey Lewandowski, Mr. state, and 2008 nominee John New Hampshire, recently drew second. We’ve got plenty of supporters—for not being as
“The entire justification for Trump’s campaign manager, McCain, who staged a come- the ire of the Union Leader, time.” Mr. Rubio answered aggressive as Mr. Bush.
New Hampshire being the first said he has “seen tens of thou- back from here after his cam- which demanded “Where’s Ru- about a dozen questions over At a town-hall meeting in
in the nation is that you can sands of New Hampshire resi- paign verged on collapse. bio?” The editorial ripped Mr. more than an hour. “If Marco Alton on Monday, Mr. Bush
meet people one on one,” said dents on his numerous trips” In the latest GOP primary, Rubio for delivering his stump Rubio becomes the leader of jabbed Mr. Trump for praising
Drew Cline, former editorial and will return next week. His even as several rivals surged speech and taking questions the free world, I just want to Russian President Vladimir Pu-
page editor of the New Hamp- campaign Tuesday announced ahead of Mr. Romney in the for only 10 minutes at an be a guy who shook his hand,” tin and for disparaging Mexi-
shire Union Leader newspaper. the appointment of 200 volun- national polls, the former gov- event. said Carl Gagnon, a union la- can immigrants. “This is not a
“If New Hampshire goes for teer “town chairs” in commu- ernor of nearby Massachusetts Mr. Christie has logged borer who did just that. serious man that has serious
Trump, who is connecting with nities throughout the state. never lost his lead in New more events in New Hampshire Mr. Bush’s event Monday plans, and I believe it is impor-
voters via debates and celeb- Mr. Trump’s critics dismiss Hampshire. than any other candidate ex- night in Alton was the third tant for people to look at the
rity status, it is potentially fa- his enduring lead in the polls, This year, three candidates cept South Carolina Sen. Lind- candidate forum of the day for facts of this,” he said.
tal,” he said. pointing to a history of late who have invested consider- sey Graham—who dropped out Fergus Cullen, the former There are risks to his ever-
Mr. Trump’s popularity in decision-making in a state that able time in New Hampshire— Monday in part because his chairman of the New Hamp- changing approach. Polls show
New Hampshire reflects the lets voters register to vote on New Jersey Gov. Chris Christie, low national poll numbers kept shire Republican Party, who unfavorable views of Mr. Bush
decades-long trend away from Election Day. Forty-six percent former Florida Gov. Jeb Bush him off the main debate stage. said he has been to nearly two outweigh favorable views,
state-by-state ground games of the voters in the 2012 New and Ohio Gov. John Kasich— “We go at this for a while,” dozen this year. He said he is making him a less reliable
and toward a national, media- Hampshire GOP primary—held are running in fourth, fifth and Mr. Christie said at a town-hall “resigned” to Mr. Trump win- messenger or, worse, appear-
driven presidential campaign. early on Jan. 10—said they sixth place, respectively, ac- meeting on Sunday. “This is ning the primary. ing to be searching for any
This year, the daily grind of made their decision that day cording to the Real Clear Poli- not like a Marco Rubio thing, “There aren’t 250 people in way to become relevant. Mr.
the campaign trail has been or in the past few days, ac- tics polling average. The candi- where you get three questions New Hampshire who have Bush’s national standing in the
overshadowed by record-set- cording to exit polling. dates are focusing on the state and then he leaves.” shaken Trump’s hand, and polls is at 4.6%, according to
ting debate audiences, the ex- New Hampshire has tradi- as a matter of necessity, be- At Tuesday’s town hall here there aren’t 12 people who the Real Clear Politics average
panding reach of social media tionally rewarded Republican cause they are unlikely to fare in Berlin, Mr. Rubio made it have asked him a question,” of Republican national primary
(Mr. Trump has 5.4 million candidates who hunker down well in the more conservative clear that he wasn’t in a rush. Mr. Cullen lamented. “In the polls, compared with 34.4% for
Twitter followers) and the in the frigid weeks leading up early-voting states of Iowa and “I’ll be brief. I want to get to past, candidates who have Mr. Trump. In July, Mr. Bush
sheer size of the field, making to its primary. Most recently, South Carolina. your questions,” he told about tried to shortcut the grass- led the pack with 18% support.
it harder for voters to check that was 2012 nominee Mitt Florida Sen. Marco Rubio, 125 people gathered in a VFW roots part of a campaign have By attacking Mr. Trump, he
out all the candidates before Romney, who conveniently currently tied with Texas Sen. hall. To a voter raising a hand, been punished.” also could confuse voters
about his brand of leadership,
as Mr. Bush has long pitched

Clinton Outlines himself as more of a problem-

solver than a flamethrower.
Less than half of the voters in

Alzheimer’s Effort
a recent Wall Street Journal/
NBC News poll said Mr. Bush
was honest and straightfor-
ward, compared with 61% who
described Mr. Trump that way.
BY PETER NICHOLAS cans are particularly vulnera- What’s more, Mr. Trump
ble to the disease. All are con- doesn’t sit quietly while being
Democratic presidential stituencies Mrs. Clinton has attacked. In recent days, he
front-runner Hillary Clinton been wooing in her pursuit of has called Mr. Bush a “loser,” a
rolled out a plan Tuesday the Democratic nomination. “basket case” and “dumb as a
aimed at finding a cure for Rudolph Tanzi, a neurology rock.”
Alzheimer’s disease through a professor at Harvard Medical Mr. Bush’s strategy repre-
big increase in government re- School, told reporters: “Of all sents a shift from less than
search spending, a project that these age-related diseases, two weeks ago when he told
SCOTT OLSON/GETTY IMAGES

she would underwrite partly Alzheimer’s is one that cannot
through higher taxes on claim a survivor.”
wealthier Americans. Alzheimer’s impairs brain
The plan would set aside function, causing memory loss
$2 billion a year for Alzhei- and eroding the ability to
mer’s, tracking recommenda- think and carry out tasks. In
tions made by experts in the 2011, Mr. Obama signed into
field, in an effort to find a law a measure creating a na-
cure in the next 10 years. The tional plan to overcome the
sum is about four times what
the National Institutes of
Health says it has spent annu-
ally on Alzheimer’s research in
disease, which affects more
than five million Americans.
Mrs. Clinton’s proposal
seems more ambitious. Her
recent years. A new budget
package signed into law by
President Barack Obama last
campaign said she hopes to
make a cure possible for Alz-
heimer’s disease by 2025.
Support came from an un-
likely source. Newt Gingrich, a
The Democrat calls former Republican House
for setting aside $2 speaker and presidential can-
didate, called the Alzheimer’s
billion a year to find plan “a big building block in
a cure in 10 years. the right direction.” He added
in an interview that he hoped
Republican candidates would
week boosted Alzheimer’s re- “look seriously at either
search spending to $936 mil- matching or improving her ap-
lion, an increase of $350 mil- proach.”
lion, according to the National Experts in the field praised
Institute on Aging. Mrs. Clinton’s proposal,
Part of Mrs. Clinton’s cam- though they said there are no
paign message seeks to ad- guarantees researchers can
dress grand issues centering find a cure for Alzheimer’s by
on national security and the 2025. Timothy Armour, presi-
economy, but also the more dent and chief executive of the
personal concerns of Ameri- Cure Alzheimer’s Fund, said a
cans. Alzheimer’s is one such cure within 10 years is “a
issue, an irreversible disease stretch goal.”
that, apart from its devastat- “This is a very complex dis-
ing effect on patients, can ease and it will take complex
drain family bank accounts answers,” he said. “We proba-
and leave caregivers ex- bly will not have one white pill
hausted. to kill the disease.”
“We owe it to the millions The Republican National
of families who stay up at Committee declined to com-
night worrying about their ment on Mrs. Clinton’s plan.
loved ones afflicted by this The campaign didn’t pro-
terrible disease and facing the vide specifics of how she
hard reality of the long good- would cover the cost of the ex-
bye,” Mrs. Clinton said. panded research, other than to
In laying out the proposal, say she has called for tax-law
the Clinton campaign men- changes that would close cor-
tioned that women and older porate loopholes and raise
Hispanics and African-Ameri- taxes on wealthier Americans.
Donald Trump’s proposal would eliminate 22% of revenue over 10 years, an analysis said Tuesday.
Trump Plan Cuts $9.5 Trillion
In Tax Revenue, Study Finds
BY RICHARD RUBIN
Donald Trump’s tax plan
would cut federal revenue by
$9.5 trillion over a decade and
boost the after-tax incomes of
the wealthiest households by
an average of more than $1.3
million a year, according to an
analysis released Tuesday.
The Republican presidential
candidate’s proposal would
lower income tax rates and ex-
empt millions of low-income
households, requiring signifi-
cant new borrowing or unprec-
edented spending cuts beyond
anything Mr. Trump has de-
tailed in his campaign.
Mr. Trump’s plan, first re-
leased in September, would
eliminate 22% of federal reve-
nue over 10 years, radically
shrinking the government, ac-
cording to the Tax Policy Cen-
ter, a nonpartisan project of
the Brookings Institution and
the Urban Institute.
The billionaire real-estate
developer is proposing the
largest tax overhaul of all GOP
contenders. The center this
month estimated former Flor-
ida Gov. Jeb Bush’s plan would
cut federal revenue by $6.8
trillion over a decade.
Mr. Trump’s website says
reporters in New Hampshire he
didn’t want to talk about Mr.
Trump anymore.
Mr. Bush brought up Mr.
Trump three times in Monday
night’s gathering of about 200
people. Months after Mr.
Trump dismissed him as “low
energy,” Mr. Bush is clearly rel-
ishing his pugilistic posture.
“The way you develop the
perception of strength is by
taking on a fight that you care
about,” said Republican strate-
gist Stuart Stevens, a top ad-
viser to 2012 nominee Mitt
Romney. “Donald Trump rep-
his plan would be revenue- report before its release. resents everything that Bush is
neutral. According to the cen- Mr. Trump’s plan would against in politics, and he
ter, the limits on tax breaks compress today’s seven indi- should embrace that fight.”
proposed by his campaign are vidual income-tax brackets At the Bush town-hall meet-
nowhere near enough to over- into three and set a top rate of ing, voters were divided on
come the tax-rate cuts. 25%, down from 39.6%. It whether they liked him throw-
A spokeswoman for Mr. would exempt each person’s ing punches.
Trump said, “Many experts, in- first $25,000, or each married “Ignore Trump,” said Paul
cluding [economist and jour- couple’s first $50,000, from in- White, a U.S. Army retiree. His
nalist] Larry Kudlow, have come taxation. The plan would wife, Catherine, disagreed.
praised the plan since its re- cut rates on business income “Somebody has got to stand up
lease.” to 15%, eliminate the estate tax to him. He’s such a bully.”
The GOP candidates are all and curb some deductions. “I don’t like when they go
proposing to cut income-tax On average, each household after each other,” said Vivian
rates while limiting some de- would get a $5,144 tax cut in Sims, a retired educator. “I
ductions. In a shift from 2012, 2017, increasing after-tax in- want more substance.”
when Mitt Romney promised come by 7.1%. The gains are The most-discussed mo-
to prevent increasing the defi- highly concentrated among the ment on Facebook during last
cit or shifting the tax burden highest-income households, week’s debate was a rare
from the highest-earning which would get a bigger per- zinger from Mr. Bush: “Donald,
households, most of this year’s centage of the tax cuts than you’re not going to be able to
candidates aren’t making ei- the share of taxes they pay insult your way to the presi-
ther of those pledges. now. The top 1% of households, dency.” (Four days later, Mr.
By comparison, President those making over $732,323, Bush called Mr. Trump a
George W. Bush’s 2001 tax would get 35% of the tax cuts. “jerk.”)
cuts, first proposed when the On the lower end of the in- Former presidential candi-
government projected trillions come scale, Mr. Trump’s plan date Newt Gingrich said on
of dollars of budget surpluses, would exempt 33 million addi- Twitter that “Jeb Bush had his
were estimated to reduce rev- tional households from income best night as assertive, even
enue by about 6%. President taxation. The study found 63% aggressive and unintimidated
Barack Obama’s 2016 budget of households would pay no by Trump.”
called for a 3% increase. federal income tax in 2017, up Political consultant Mike
“The revenue losses from from 44% under current law. Murphy, who runs the super
this plan are really enormous,” The center plans to analyze PAC backing Mr. Bush, said on
said Leonard Burman, the Tax other plans, including those of Twitter that Right to Rise USA
Policy Center’s director. A bi- Marco Rubio, Ted Cruz, Hillary raised more than $1 million in
partisan panel reviewed the Clinton and Bernie Sanders. the two days after the debate.
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, December 23, 2015 | A5

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A6 | Wednesday, December 23, 2015
Kentucky
Marriage
Form to
Be Revised
BY ARIAN CAMPO-FLORES
Kentucky’s newly elected
governor issued an executive
order Tuesday to issue mar-
riage-license forms that don’t
require the names of county
clerks, a move he said would
honor the religious beliefs of
officials who oppose same-sex
unions and still allow mar-
riages to be recorded.
The decision is likely to re-
ignite debate over the refusal
of Kim Davis, the Rowan
County clerk, to issue marriage
licenses to gay couples, a case
that drew national attention
earlier this year. Her resis-
tance on the grounds that she
didn’t want to sanction a mar-
riage that violated her reli-
gious beliefs prompted a fed-
eral judge to order her jailed
for five days and made her a
cause célèbre among cultural
conservatives.
In the order, Republican Gov.
Matt Bevin directed the Ken-
tucky Department for Libraries
and Archives to provide the re-
vised marriage-license form to
all county clerk offices.
Mr. Bevin supported Ms. Da-
vis’s position and vowed during
his campaign to take the action
he announced Tuesday, on his
15th day in office. Some ana-
lysts say the case helped moti-
vate religious conservatives to
turn out to vote for him.
The American Civil Liber-
ties Union, which represented
couples who sued Ms. Davis
over the issue, criticized the
governor’s move. His “execu-
tive action has added to the
cloud of uncertainty that
hangs over marriage licensing
in Kentucky,” said William
Sharp, legal director of the
ACLU of Kentucky. “The re-
quirement that the county
clerk’s name appear on mar-
riage licenses is prescribed by
Kentucky law and is not sub-
ject to unilateral change by the
governor.”
Jessica Ditto, communica-
tions director for Mr. Bevin,
said the governor is confident
he is on firm legal footing and
that “there is no legislative ac-
tion required to implement
this change in the form.”
Ms. Davis “is very happy,”
said Roger Gannam, senior liti-
gation counsel at Liberty
Counsel, the nonprofit law
firm representing her. “It’s an
example of the kind of com-
mon-sense and simple accom-
modation that has been avail-
able all along in this case.”
The dispute continues to
unfold in federal court in Ken-
tucky, where U.S. District
Judge David Bunning is hear-
ing the ACLU’s lawsuit against
Ms. Davis.
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ControversialTrademarkIsAllowed
BY BRENT KENDALL
WASHINGTON—The U.S.
government can’t reject trade-
marks that some people might
find disparaging or offensive, a
federal appeals court
ruled Tuesday, citing constitu-
tional free-speech protections.
The U.S. Court of Appeals
for the Federal Circuit struck
down a nearly 70-year-
old provision in federal law
and sided with Simon Tam, the
frontman for the Asian-Ameri-
can rock band the Slants. Mr.
Tam had sought to register the
band’s name, but a U.S. Patent
and Trademark Office examiner
denied the registration, saying
the phrase was likely disparag-
ing to people of Asian descent.
The ruling could help the
Washington Redskins football
team, which is fighting a 2014
Patent and Trademark Office
decision to cancel its trade-
marks because Native Ameri-
cans found the name disparag-
ing. The team’s case is in a
different court, but the Red-
skins are making the same le-
gal argument as Mr. Tam.
Tuesday’s decision endorsed
a robust view of the First
Amendment as it struck
down a part of the 1946 Lan-
ham Act that barred the regis-
tration of disparaging trade-
marks. The appeals court also
acknowledged its ruling
opened the door for the regis-
tration of trademarks that con-
tain ethnic slurs and “offend
vulnerable communities.”
“Whatever our personal
feelings about the mark at is-
sue here, or other disparaging
marks, the First Amendment
forbids government regulators
to deny registration because
they find the speech likely to
UPS
Continued from Page One
broader plan at Amazon, which
counts shipping costs as one of
its fastest-growing expenses, to-
taling 11.7% of revenue in the
third quarter, up from 10.4% a
year ago. The goal is to reduce
its reliance on carriers like UPS,
according to people familiar
with the matter.
“Amazon’s interest is not in
doing what may be good for
UPS,” said Satish Jindel, a par-
cel-industry analyst with SJ
Consulting Inc. “Their interest is
in getting control over logistics.”
Amazon declined to com-
ment. A spokesman for UPS said
“we will continue to work
closely with Amazon and all our
customers to help them solve
their growth and customer ser-
vice challenges.”
There is more than loyalty at
stake for Atlanta-based UPS.
This year, its Amazon account
exceeds $1 billion, say former
Amazon and UPS executives.
That is roughly a fivefold in-
SHANE PARSONS,
WOUNDED VETERAN
U.S. NEWS
Simon Tam, foreground, with members of his band the Slants, shown in Portland, Ore., in August.
offend others,” Judge Kimberly
Moore wrote for the court’s
majority. She said the Constitu-
tion protects free speech “even
when speech inflicts great
pain.”
One dissenting judge, Alan
Lourie, said the court wrongly
interfered with long-standing
congressional policy of giving
the Patent and Trademark Of-
fice authority to “filter out cer-
tain undesirable marks” from
crease since 2005, according to
an estimate by a former execu-
tive with direct knowledge of
the company’s spending.
While UPS investors gener-
ally view growing volumes as a
sign of health, the company’s
cost-per-package has actually
risen since more than a decade
ago, putting margins under
pressure.
The average cost to handle a
parcel was about $8 last year, up
from roughly $6.50 in 2000, ac-
cording to the company. Much of
the increase was attributed to a
growth in e-commerce, as UPS
has invested more than $11 bil-
lion over the past five years to
upgrade and expand its network.
It hasn’t helped relations that
Amazon was a factor in UPS’s
last two back-to-back Christmas
snafus—each of which cost UPS
an unexpected $200 million.
Two years ago, Amazon over-
whelmed UPS with hundreds of
trailers of last-minute Christmas
orders. It later got UPS to help
underwrite millions in customer
refunds.
Last year, UPS increased capi-
tal spending by 10% to be ready
for a prolonged holiday surge
that never came.
This year, the company is ex-
pecting record volumes and has
already seen parts of its network
strained from a surge of online
holiday spending over the days
before and after Thanksgiving.
On UPS’s earnings call in Oc-
tober, an analyst pushed man-
agement to address possible
tension in the companies’ rela-
tionship.
“How do you make sure that
you’re guarding against the po-
tential outcome where your cus-
tomers might increasingly be-
come competitors?” asked
Alexander Vecchio with Morgan
Stanley.
Alan Gershenhorn, UPS’s
chief commercial officer, said it
would be “very difficult to
match.”
U.S.
Watch
NORTH CAROLINA
Bergdahl Appears
In Military Court
Sgt. Bowe Bergdahl faced a
military judge Tuesday for the
first time since the U.S. Army
decided to proceed with a mili-
tary trial that could result in a
life sentence for his disappear-
ance in Afghanistan in 2009.
Sgt. Bergdahl, who was held
by the Taliban for five years af-
ter he walked off a base, was ar-
raigned during a short hearing on
charges of desertion and misbe-
the federal trademark registra-
tion system. The court’s deci-
sion to overturn past legal
precedent and invalidate the
provision would “further the
degradation of civil discourse,”
the judge said.
Civil liberties groups—and
the Redskins—had filed legal
briefs supporting Mr. Tam. The
musician said his band was
fighting racial stereotypes, not
disparaging people.
UPS is expecting record volumes of deliveries this year.
Shipping News
As sales have grown at Amazon, so too have package delivery costs.
Net sales
$100 billion
$89B
80
60
40
20
0 clear whether Amazon can out-
2004 ’06 ’08 ’10 ’12 ’14
Source: the company
The customer-as-competitor
dynamic is upending various
business models. Pay-TV provid-
ers like Comcast Corp. and Dish
Network Corp., for example,
could feel the pain as HBO by-
passes them to reach consumers.
Ditto for retailers like Macy’s
Inc. as Estée Lauder sells direct
to online shoppers.
At Amazon, plans to handle
more of its own parcels have ac-
celerated over the past two
years, according to current and
former executives. Amazon also
fears that UPS’s hub-and-spoke
system—moving a package from
shipper to sorting hub to brown
havior before the enemy, a rela-
tively rare charge that carries
the severe punishment. If con-
victed of desertion, he could be
sentenced to up to five years in
prison.
Wearing an Army dress uni-
form, Sgt. Bergdahl deferred en-
tering a plea and didn’t decide
whether he wants to face a
court-martial with a jury or one
with just a judge. He said little
beyond answering “yes” and “no”
to questions about whether he
understood his rights and the
court proceedings.
Sgt. Bergdahl, 29 years old,
walked off his post in eastern
Afghanistan’s Paktika province
on June 30, 2009. He was re-
leased in late May 2014 as part
of a prisoner swap, in exchange
for five detainees in Guantan-
amo Bay.
—Associated Press
* *** THE WALL STREET JOURNAL.
Some Asian legal groups op-
posed Mr. Tam’s case, arguing
that expressions of racism take
on a different character when
enshrined with a government-
blessed trademark.
Registered U.S. trademarks
provide several legal rights and
benefits, including the ability
to use the trademark exclu-
sively nationwide when it
hasn’t been used previously by
others. Trademark holders also
Shipping cost
$10 billion
$8.7B
8 analysis of LinkedIn data. In
6 year veteran working on engi-
4 networks, left to become Ama-
2 gineering.
0
2004 ’06 ’08 ’10 ’12
THE WALL STREET JOURNAL
van to your home—is growing
obsolete, according to the execu-
tives. So the retailer is building
regional distribution and pack-
age sorting centers, while add-
ing thousands of truck trailers. It
is even trying delivery by news-
paper carriers.
For a long time, UPS and Am-
azon were a harmonious pair.
The two had worked together
for years, even as FedEx Corp.
also shipped for Amazon. In
2013, FedEx refused to lower
prices enough to meet Amazon’s
demands on a big chunk of its
business with the retailer, ac-
cording to people familiar with
SAN BERNARDINO SHOOTING
Couple Got Engaged
In Saudi Arabia
The suspected gunman in the
San Bernardino, Calif., attack told
U.S. officials he had met his fu-
ture wife on a “matrimonial web-
site” and that they were en-
gaged in Saudi Arabia in 2013,
according to a visa application to
bring her to the U.S.
In a 21-page visa application,
released Tuesday by the House
Judiciary Committee, Syed Riz-
wan Farook said he and Tash-
feen Malik were engaged in
Mecca after several weeks of
email exchanges.
Law enforcement killed Mr.
Farook and his wife on Dec. 2 af-
ter they allegedly gunned down
14 people at a holiday event.
The document’s release
comes as the visa-vetting pro-
can receive assistance from
U.S. Customs and Border Pro-
tection in stopping the impor-
tation of infringing or counter-
feit goods.
A trademark can be claimed
even if it isn’t federally regis-
tered. In the case of the Red-
skins, the team could assert
limited common-law rights to
the name even if it loses its
court battle. A spokesman for
the Redskins, whose case is on
appeal at the Fourth U.S. Cir-
cuit Court of Appeals in Rich-
mond, Va., declined to com-
ment on the ruling.
Few trademarks were re-
jected as disparaging in the
early days of the Lanham Act,
but the issue has gained promi-
nence. In addition to the Red-
skins’ name, the Federal Circuit
decision listed many other
trademark requests the patent
ANTHONY PIDGEON/REDFERNS/GETTY IMAGES
office has rejected in recent
years, including “Stop The Isla-
misation of America,” “Mor-
mon Whiskey,” and terms that
could be viewed as derogatory
about gays and minorities.
The ruling could have broad
impact because the Federal Cir-
cuit is the court that hears
most appeals involving the pat-
ent office.
The government can appeal
to the Supreme Court. A
spokesman for the patent of-
fice declined to comment.
Ronald Coleman, a lawyer
for Mr. Tam, said the court ap-
propriately recognized the con-
stitutional problems with al-
lowing trademark examiners to
deny registration based on a
trademark’s message.
“You’re asking people who
are trained as lawyers to make
decisions that are in the realm
of sociology and history,” Mr.
Coleman said.
the negotiations. Amazon asked
UPS to take on much of it in-
stead. The company agreed, al-
though some UPS executives
questioned whether to assume
the low-margin business.
When Amazon launched
Prime unlimited two-day ship-
ping in 2005, UPS went all in,
giving the retailer discounts of
as much as 70% for the new
business.
MIKE SEGAR/REUTERS
Lately, though, the compa-
nies’ relationship has been
strained. A few years ago, UPS
shared some of its routing data
with Amazon, according to an
executive. When Amazon re-
quested additional data, UPS—
by then wary of the retailer’s in-
tentions—refused, that
executive added.
Amazon has poached more
than 40 UPS supervisors, man-
agers and executives in the last
three years, according to an
September, Kniffen Kelly, a 16-
neering UPS’s transportation
zon’s director of sort center en-
For all its efforts, it is still un-
run its delivery partner—or if it
’14
might ever be able to break
away from UPS. Building a logis-
tics network is costly, and the
retailer may never have the nec-
essary infrastructure, industry
analysts say.
Some customers have already
complained about missed or late
deliveries from Amazon’s in-
house service, known as Amazon
Logistics.
David Konigsberg said a cam-
era he ordered this month
seemed to vanish. “Amazon said
the package I ordered had left
the carrier facility, but it never
came to me,” said Mr. Konigs-
berg, a 27-year-old software de-
veloper in Alexandria, Va. “It’s a
good thing I didn’t need it right
away.”
cess that allowed Ms. Malik en-
try to the U.S. is under scrutiny.
As a U.S. citizen, Mr. Farook peti-
tioned to bring Ms. Malik, a na-
tive of Pakistan, to the U.S. with
the intent of marrying her.
In a statement dated Jan. 20,
2014, and included in the applica-
tion, Mr. Farook said that “my fi-
ance and I intend to marry
within the first month of her ar-
riving in the U.S.”
U.S. officials have said that,
based on their application, Ms.
Malik qualified for the K-1 visa.
“Tashfeen Malik’s immigration
file contained sufficient evidence
to establish that she intended to
marry Syed Farook and that the
two were together in Saudi Ara-
bia before the fiancée petition
was filed,” said a spokesman for
U.S. Citizenship and Immigration
Services..
—Miriam Jordan
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * * NY / NE Wednesday, December 23, 2015 | A7

WORLD NEWS
Safety Risk Raised Before China Landslide
Inspection firms noted
concerns at Shenzhen
landfill in the year
before it collapsed
BY CHUN HAN WONG

BEIJING—Two separate in-

spection firms flagged safety
risks at a landfill in southern
China in the year before it col-
lapsed, triggering a massive
landslide that left dozens
missing, buried factories and
dormitories and raised ques-
tions about safety enforce-
ment in the country.
One of those companies had
asked local officials to tempo-
rarily shut down the landfill
just three days before Sun-
day’s landslide, according to
an executive from the inspec-
tion company, though work at

LIANG XU/XINHUA/ASSOCIATED PRESS

the site continued.
Government officials have
pinpointed construction debris
at the Hong’ao landfill as a fo-
cus of their investigation into
the landslide, which swept
away swaths of an industrial
zone in the city of Shenzhen.
As of Tuesday evening, rescu-
ers had found one body and
were searching for more than
70 other people believed to be
missing, according to the
state-run Xinhua News
Agency. Official broadcaster
China Central Television re-
ported Wednesday that work-
ers had rescued a 21-year-old
migrant worker from the city
of Chongqing.
The reports of potential
risks at the landfill will likely
spark more concerns about
regulation in China, where vio-
lations of safety, labor, envi-
ronmental and other rules
have often been the conse-
quence of the country’s de-
cades of untrammeled growth.
Authorities have blamed lax
safety enforcement in fast-
growing areas for high-profile,
deadly accidents, including a
deadly chemical warehouse ex-
plosion in Tianjin in August.
Workers early Wednesday rescued a man who had been buried for more than 60 hours in a landslide at an industrial park in Shenzhen, Guangdong province.
Shenzhen J-star Project
Management Consultant Co.,
a local environmental monitor-
ing firm, proposed on Dec. 17
to suspend the landfill’s opera-
tions pending efforts to ad-
dress safety risks it had iden-
tified, said Bian Yuxiang, a
vice president at J-star. He
said his department oversaw
the inspection work.
Mr. Bian said his firm made
the proposal to local govern-
ment officials and to the land-
fill’s operator, Shenzhen Lu-
wei Property Management
Co. He said work at the site
continued, however.
Luwei didn’t respond to re-
quests to comment. Phone
calls to its office went unan-
swered. Government notices
say the landfill became opera-
tional in 2014.
A media official with the
Guangming New District, the
part of Shenzhen where the
landslide occurred, said he
wasn’t aware of the details be-
hind the accident or any in-
spection findings, and referred
questions to the local govern-
ment’s official news outlets.
Government officials said in a
July notice that they hired J-
star to monitor the landfill.
Mr. Bian said his firm found
that the soil and debris were
sinking in part of the landfill,
suggesting that adding further
material could destabilize it.
“We found that there were
some long-term problems,
such as the fact that the soil
wasn’t sufficiently compact,”
he said. The landfill also didn’t
have a proper safety-monitor-
ing system in place, he added.
Last month, municipal offi-
cials urged the landfill opera-
tor to address unspecified
problems identified in a recent
report, according to a govern-
ment notice. Mr. Bian said that
notice was driven in part by
his firm’s findings. He added
that the Dec. 17 recommenda-
tion to suspend work at the
landfill was the culmination of
repeated attempts to get the
operator to make improve-
ments.
A second monitoring firm
in January also said the
Hong’ao landfill could pose a
safety risk to nearby industrial
facilities. “The main environ-
mental risk in this project is
that of a [landfill] levee col-
lapse,” said a Jan. 12 report,
prepared by Zongxing Tech-
nology, a environmental-tech-
nology firm based in Shen-
zhen. Zongxing didn’t respond
to requests to comment. The
report said the firm was hired
by Luwei, the landfill operator,
to conduct an environmental-
impact assessment. Zongxing’s
report was cited Monday by
Chinese media.
The January report said a
landfill levee collapse would
pose safety risks to the nearby
Liuxi Industrial Park, just over
200 meters away, and an un-
specified concrete company,
both on the north side of the
landfill. Liuxi is one of three
industrial parks hit by the
landslide. Photos of the land-
slide’s aftermath show that le-
vees failed to hold back mas-
sive amounts of soil and
construction debris.
The January report recom-
mended measures to minimize
safety risks, including the in-
stallation of drainage systems,
planting grass on the hillside,
and hiring third-party inspec-
tors to conduct regular checks.
It wasn’t clear whether those
steps were taken.
The Hong’ao landfill was
meant to help authorities in
Guangming New District cope
with construction-debris out-
put estimated at one million
cubic meters a year, according
to the January report. It has a
design capacity of eight mil-
lion cubic meters, of which six
million cubic meters would be
used for construction debris
over an 11-year period, the re-
port said.
—Kersten Zhang
and Olivia Geng
contributed to this article.

Disaster Hurts City’s Attempt

To Shed ‘Factory Town’ Image
BEIJING—The deadly land- The city is a hub for mi-
slide in Shenzhen is a setback grant workers, the hundreds of
for one of China’s most modern millions of Chinese who leave
cities, which has been seeking
to shed its image as a factory
town and remake itself as an
innovative technology hub.
their homes to find jobs in far-
flung places. Only about a third
of the population have what
are called local household reg-
Thanks
The city of more than 10
million people was one of the
first to open to foreign invest-
istrations, or hukou, meaning
they qualify for local services.
Shenzhen is also seeing in-
to our
ment 35 years ago. Today it is tensifying competition with
the home to leading high-tech

Shenzhen, one of
China’s richest
cities, wants to be a
hub for high tech.
companies including Internet
giant Tencent Holdings Ltd.,
telecommunications heavy-
weight Huawei Technologies
Co. and up-and-coming drone
maker SZ DJI Technology Co.
Shenzhen is also one of
China’s most prosperous cities,
generally lumped in with Bei-
jing, Shanghai and neighboring
Guangzhou as “tier-one cities.”
Its economy is the fourth-larg-
est among Chinese cities, ac-
cording to the National Bureau
of Statistics, and one of the
richest per person, according to
gross-domestic-product per
capita data.
other parts of the country in
terms of labor costs. Its
monthly minimum wage last
Business
Customers.
year rose to 2,030 yuan
(around $310), which official
media said was the first to
break the 2,000 barrier.
As China’s economic boom
has slowed, Shenzhen has felt
the drag. The city has been the
scene of labor tensions, accord- “Highest in
ing to workers and labor
groups.
China’s technology boom
Customer
has been a bright spot. Tai-
wan’s Foxconn Technology Satisfaction with
Group, the world’s largest con-
tract electronics manufacturer,
runs one of its largest produc-
Small Business
tion centers in Shenzhen.
The high-tech industry con- Banking in
tributed 516.4 billion yuan
($79.7 billion) in added value the Northeast
to Shenzhen’s economy in
2014, or about one-third of its
GDP, according to the city gov-
Region”
ernment.
—Eva Dou – J.D. Power

India Toughens Law

After Gang-Rape Case
BY NIHARIKA MANDHANA
AND RAJESH ROY
NEW DELHI—India’s Parlia-
ment amended the country’s
juvenile-offender law to allow
those aged 16 to 18 years to be
tried as adults if they are ac-
cused of committing serious
crimes such as rape and mur-
der—a response to a high-pro-
file 2012 case.
The change follows Sun-
day’s release of a man who
was 17 years old at the time of
his arrest in connection with
the gang rape and murder of a
student in Delhi, a crime that
drew public attention to vio-
lence against women in India.
The man, who hasn’t been
identified publicly because of
his age, served three years in a
reformatory, the maximum
sentence allowed under the
previous law. Critics of the law
said it was too lenient on vio-
lent adolescents.
“It is a good development
because at least other women
will be safe,” said the mother
of the victim, who attended
the parliamentary debate
along with other relatives. “I
am satisfied, but I am also sad
that our daughter didn’t get
justice,” she said, crying dur- TD Bank, N.A. | TD Bank, N.A. received the highest numerical score in
ing a televised interview. the northeast in the proprietary J.D. Power 2015 Small Business Banking Satisfaction
A court sentenced four StudySM. Study based w, VT) and measures opinions of small business customers with
other men, who were adults at annual revenues from $100,000 to $10 million. Proprietary study results are based
on experiences and perceptions of customers surveyed in July-August 2015. Your
the time of the crime, to death.
experiences may vary. Visit jdpower.com
Their cases are under appeal.
A fifth accused man was found
dead in prison in 2013.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.

WORLD NEWS

Afghan Spy Pullback Aids Militants U.S. Adds

Sanctions
As surveillance assets
dwindle in remote
areas, extremists find
On Putin
more room to operate Associates
BY JESSICA DONATI BY JAY SOLOMON
AND MARGHERITA STANCATI AND PHILIP SHISHKIN

KABUL—Fourteen years af- WASHINGTON—The Obama

ter the U.S. and its allies administration slapped fresh
routed most al Qaeda militants sanctions on Ukrainian and
from Afghanistan, the country Russian businessmen and poli-
is again becoming a haven for ticians close to President
extremist groups, the result, in Vladimir Putin, a move that
part, of inadequate surveil- was designed to show support
lance of its far-flung territory, for Kiev but could undercut
according to Afghan and West- U.S. efforts to cooperate with
ern officials. Moscow on ending the Syrian
At the height of their pres- war.
ence five years ago, the U.S. The Treasury Department
military and its allies operated said the penalties were aimed
852 bases and outposts across at forcing Russia to comply
Afghanistan, many with their with diplomatic agreements
own informants, drones and designed to stabilize Ukraine
surveillance balloons to moni- and force Russian troops out
tor even remote areas of the of Crimea, which the Kremlin
XINHUA/ZUMA PRESS

vast and rugged country. formally annexed last year.

Today, these spy assets are The timing of the sanctions
largely gone. As of September, highlights the complicated ties
all but about 20 of the instal- between the two powers.
lations that anchored the ex- While opposing Russia’s ag-
tensive intelligence-gathering An Afghan military operation in Ghazni province this month. Extremists have managed to set up bases in remote parts of the country. gression in Ukraine, the ad-
network have been closed, ministration has worked to se-
bulldozed or handed off to the special-operations forces than it should,” a former Af- areas of Afghanistan stems feel the consequences.” cure Moscow’s cooperation in
Afghan government. razed the encampment, which ghan intelligence official said. from the drawdown of U.S. U.S. intelligence support for the fight against Islamic State
With large stretches of Af- officials described as probably The growing influence of forces and the closing of U.S. the Afghan military today is and in efforts to end the Syr-
ghanistan now regularly un- the largest al Qaeda installa- militant groups like al Qaeda and NATO bases that began in mostly limited to information ian conflict.
monitored, Afghan and West- tion in Afghanistan since the was a factor in President Ba- 2012. for specific military operations The Kremlin, responding to
ern officials fear that more U.S.-led invasion in 2001. rack Obama’s decision in Octo- Informants run by the Cen- by Afghanistan’s elite special- the new penalties against doz-
extremists from Islamic State, The mere existence of such ber to maintain the number of tral Intelligence Agency and operations forces. ens of individuals, said that
al Qaeda and other militant a large facility showed Isla- U.S. troops in the country at other coalition forces from Coalition officials are work- the sanctions could undermine
groups could find sanctuary mist militants are still willing 9,800 instead of continuing a bases around Afghanistan ing to help build Afghanistan’s U.S.-Russia relations and that
inside the country’s borders. and able to establish bases in planned withdrawal of all but weren’t transferred to the su- intelligence assets. Afghan Moscow could retaliate. “This
“We lost a lot of eyes and areas where the government a handful of U.S. forces. pervision of Afghan authori- forces are currently being is a continuation of the un-
ears,” said an official with the has no reach, the commander Mr. Obama’s plan sees ties, since under long-standing taught how to operate and friendly line against Russia
U.S.-led coalition in Afghani- of U.S. and coalition forces in maintaining that level policies observed by most spy maintain tethered surveillance that runs counter to logic,”
stan. “Reporting from the Afghanistan said. “I think they through most of 2016 and agencies, their identities balloons. Next year, they are Kremlin spokesman Dmitry
provinces dried up.” want to continue to grow,” keeping at least 5,500 when he couldn’t be disclosed, even to expected to receive the first Peskov told state media.
In a sign that militants are U.S. Army Gen. John Campbell leaves the White House. Those the host government. shipment of seven unarmed U.S. officials said they ex-
able to grow and operate un- said in a recent interview. levels will allow the U.S. to “There was a dramatic drones, according to U.S. Army pected Russia might try to re-
detected outside Afghanistan’s The intelligence gap has maintain drone missions and weakening of intel capabili- Maj. Gen. Gordon Davis, whose taliate for the sanctions, possi-
main urban centers, the U.S. also helped the Taliban mount counterterrorism operations, ties,” said Franz-Michael Mell- command oversees the devel- bly by further undercutting
military in October discovered large-scale surprise attacks, military officials have said, de- bin, the European Union’s en- opment of Afghan forces. American efforts on Ukraine
a 30-square-mile al Qaeda overrunning districts and kill- spite the loss of outposts. voy to Afghanistan. “It was —Gordon Lubold and Syria. But they added that
training camp in the southern ing large numbers of Afghan The lack of intelligence on like a watershed—it should in Washington Russia’s oil-dominated econ-
province of Kandahar. U.S. troops. “It’s costing more lives militant activities in remote not have been. And we still contributed to this article. omy is continuing to deterio-
rate as crude prices plunge.
“They have to decide

RAMADI 250-350 Islamic State fighters

are left in Ramadi, said Col.
Steve Warren, a spokesman for
the U.S.-led coalition battling
“We’re encouraged by this
tactical development, which is
a continuation of the progress
we’ve seen over the last several
TURKEY

Sinjar
Mosul
100 miles

100 km
of thousands of refugees while
oil revenues plummet.
A success against Islamic
State in Ramadi, coupled with
whether an escalatory cycle is
what they want,” said a senior
U.S. official.
Among those blacklisted
T ig r i s

SYRIA
Continued from Page One Islamic State. Combined Iraqi weeks,” Col. Warren said about the visit to China, offers a were top Russian businessmen
R.

when military engineers in- government forces, including the Iraqis’ push into the center Ramadi IRAN much-needed boost to Mr. the U.S. accused of helping the
stalled a temporary bridge over federal police and Sunni tribal of Ramadi. “There’s still tough Baghdad Abadi’s declining political stat- Kremlin evade Western sanc-
the Euphrates River, according fighters who weren’t actively fighting ahead in Ramadi’s ANBAR
ANBAR ure at home. The Shiite prime tions imposed last year after
PROV INCE
PROVIN CE
to Sabah al-Numani, head of involved in Tuesday’s initial dense urban terrain,” he added. minister has spent the past the Crimea land grab. The in-
the government’s counterter- push, number as many as Coalition airstrikes have several months staving off crit- dividuals named in the U.S.
rorism forces. Iraqi troops 10,000 men, Col. Warren said. played a crucial role in Iraq’s IRAQ icism from Iran-backed militia sanctions couldn’t be reached
crossed the bridge and entered Though the Iraqi forces recent victories over Islamic leaders and Shiite Muslim poli- to comment.
the al-Huz neighborhood, south greatly outnumber the enemy, State, Iraqi officials have said, SAUDI ticians who accuse him of rely- “It is critical that Russia
ARABIA
of the city center, where they the battle is complicated by Is- and in the lead-up to Tuesday’s ing too heavily on American takes the steps necessary to
surprised Islamic State fighters. lamic State’s use of improvised offensive. support in the fight the Sunni comply with its obligations
“The enemy was in complete explosive devices, booby- The U.S. has been unusually THE WALL STREET JOURNAL. extremist group. under the Minsk agreements
shock and confusion, which en- trapped buildings and suicide engaged in the Ramadi opera- The mostly Shiite militias, and to ensure a peaceful set-
abled our forces to defeat the car and truck bombings to re- tion, which is the first test for said. In another recent assault known as Popular Mobilization
enemy there,” Mr. Numani said. pel its opponents. regular troops recently re- on Islamic State oil refining and Forces, are allied with the army
By early afternoon, Iraqi As many as 800 to 1,000 Is- trained by the U.S. and working shipping operations in Syria, and have played a key role in The U.S. has
troops had pushed into the lamic State fighters remained in conjunction with coalition coalition aircraft released 140 most of its gains against Is- targeted
neighborhood of al-Baker, close in Ramadi just two weeks ago, airstrikes. munitions, Col. Warren said. lamic State over the past year. Gennady
to the government compound Col. Warren said. Most of them, A success for the Iraqi mili- Col. Warren tweeted pic- But Mr. Abadi, partly at the Timchenko for
they are trying to retake, said he said, had been killed in the tary in Ramadi would augur tures of what he said were Iraqi urging of U.S. officials, blocked his close ties
Mr. Numani. interim by a combination of well for the coming battle to soldiers practicing the same the militias from fighting in Ra- to President
U.S. intelligence estimates Iraqi soldiers and coalition air- retake Mosul, Iraq’s second- bridge-building maneuver at a madi for fear of inflaming sec- Vladimir Putin.
indicate that only about strikes. largest city and Islamic State’s U.S. training session earlier this tarian tensions. Ramadi and
main stronghold in Iraq. As in month. Anbar are dominated by Iraq’s
Ramadi, U.S. and Iraqi military Iraqi planes dropped pam- Sunni minority, which often tlement of the conflict in
officials hope to avoid deploy- phlets in Ramadi last weekend, complains of discrimination at Ukraine,” said John Smith,
ing too many mostly Shiite ir- urging civilians to leave the city the hands of the Shiite-led gov- acting director of Treasury’s
regular forces to Sunni-major- within 72 hours. ernment. Office of Foreign Assets Con-
ity Mosul. Residents said Islamic State In place of the more power- trol.
The coalition has pummeled fighters were preventing them ful Shiite militias, the U.S. and Administration officials
the group’s positions in and from fleeing, hoping to use its allies have recruited and said Tuesday that Mr. Putin
around Ramadi in recent them as human shields when trained Sunni tribal fighters wouldn’t be allowed to trade
weeks, culminating in a series the push to take full control of from Anbar to hold ground that cooperation on Syria for the
of six strikes on Monday night. the city began. they retake from Islamic State. U.S.’s and Europe’s acceptance
The strikes targeted Islamic As the offensive began, The U.S. and its coalition al- of Russia’s moves into
State tactical units, weapons Prime Minister Haider al-Abadi lies don’t coordinate directly Ukraine.
caches and other known Islamic and his Defense Minister, Kha- with most units of Popular Mo- President Barack Obama
State positions, Col. Warren lid al-Obeidi, were in Beijing for bilization Forces, the majority has emphasized the distinc-
said. meetings with Chinese officials of which are financially backed tion to Mr. Putin during their
He said U.S. and allied air- to discuss military, economic by Iran. recent interactions, a senior
craft dropped 33 bombs in sup- and energy cooperation. A battle to retake the small administration official said.
port of the Iraqi offensive. By The visit is part of the prime northern Iraqi city of Sinjar in The U.S. and Russia pressed
comparison, a wave of air- minister’s attempts to seek in- November was won almost en- through a new United Nations

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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.
World
Watch
AUSTRALIA
Police Arrest Two
Over Terror Plot
Australian police officials have
arrested two more men over an
alleged plot last year to mount a
terrorist attack on a naval base
or other targets in Sydney.
Only weeks after charging
five people over plans to carry
out a terror attack, the police
said they had arrested two oth-
ers in raids allegedly linked to
the same plot.
The group had been consider-
ing an attack on government
buildings, including a naval base
to the east of the Sydney Opera
House, New South Wales state
police deputy commissioner
Catherine Burn said Wednesday.
Ms. Burn said one of those
arrested would face charges of
making a document likely to fa-
cilitate a terrorist attack, while
the other would be charged with
conspiracy to prepare to commit
a terrorist act, which carries the
risk of a lifetime jail sentence.
—Rob Taylor
VENEZUELA
Assembly Moves to
Approve Justices
Venezuela’s lame duck con-
gress gave initial approval to the
appointment of 13 Supreme
MATT CARDY/GETTY IMAGES
ANCIENT RITES: Thousands gathered at the neolithic stone circle
Stonehenge on the winter solstice, the shortest day of the year.
FIFA
Continued from Page One
above Zurich, Mr. Blatter made
light of some matters, at one
point likening his body to a
Ferrari that has been treated
like a homely Citroën 2CV,
while at other times becoming
defiant, calling his ban “non-
sense.”
Mr. Blatter also addressed
his decision to suspend the for-
mer FIFA general secretary
Jérôme Valcke and the surpris-
ing U-turn that led his former
heir apparent, Michel Platini,
to throw his support behind
Qatar’s bid to host the 2022
World Cup. Shortly before
changing his vote, Mr. Blatter
said, Mr. Platini told him:
“ ‘Careful. If we vote for Qatar,
the next day everyone will say
that FIFA sold itself out.’ He
told me that,” Mr. Blatter
added. “And then a week later,
he says something changed.”
Mr. Blatter said Mr. Platini
decided to change his vote dur-
ing a 2010 lunch at the Elysée
Palace between Mr. Platini,
then-French President Nicolas
Sarkozy, and a member of the
Qatari royal family in which
Mr. Sarkozy instructed Mr. Pla-
tini to support Qatar. France
and Qatar share significant
business interests in the aero-
space industry. “Since I’ve been
at FIFA, the World Cup has al-
ways been allocated on the rec-
ommendation—if not more—of
governments,” Mr. Blatter said.
Mr. Sarkozy has denied
these allegations in the past. A
spokesman for Mr. Platini
didn’t respond to a request to
comment. He has said in the
past that he always voted in
the best interests of soccer.
Mr. Blatter also took aim at
recent statements from FIFA’s
top sponsors who have called
for reform. “Companies, com-
mercial partners are queuing
up to get in,” he said. “If the
Americans want to leave, oth-
ers will come. But they don’t
want to get out. They won’t
leave.”
On Monday, Mr. Blatter ap-
peared at a spirited press con-
ference here to reject the FIFA
ethics committee’s verdict, act-
ing every bit the gregarious
polyglot who has spent four
decades building FIFA into an
empire with a $1.52 billion
cash reserve. On Tuesday,
shortly before traveling home
* * * * * Wednesday, December 23, 2015 | A9
WORLD NEWS
VirusDeepensBrazil’sWoes
Court justices in a move the op-
position says seeks to under-
mine its landslide victory in this
month’s legislative elections.
At the end of Tuesday’s ses-
sion, the government-controlled SÃO PAULO—Brazil is in the
National Assembly President Di- grips of yet another crisis: a Alarming 3.0
osdado Cabello announced that fast-spreading virus some
lawmakers had approved the ap- health officials are linking to
Increase
Brazilian cases 2.5
pointments, but without the thousands of cases of infant
of microcephaly,
two-thirds of the votes needed, brain damage and 40 related
meaning two more debates deaths this year.
a birth defect
that may be 2.0
would be held Wednesday.
linked to Zika-
The appointments would fill By Reed Johnson, virus infection,
vacancies left by justices who Rogerio Jelmayer 1.5
in thousands
retired early rather than risk a and Betsy McKay
balancing of the staunchly pro-
government high court. Opposi- Health authorities have de- 1.0
tion candidates won 112 of the clared a national emergency as
assembly’s 167 seats in elec- they battle the Zika virus, a
tions, giving them a “superma- mosquito-borne pathogen that 0.5
jority” to challenge the adminis- has been detected across much
tration of President Nicolás of South America’s largest
Maduro. —Associated Press country. 0
Symptoms include fever, 2010 ’11 ’12 ’13 ’14 ’15*
ITALY rashes, headaches, joint aches *Suspected cases as of Dec. 19
and vomiting, lasting from a
SILVIA IZQUIERDO/ASSOCIATED PRESS
Parliament Passes few days to about a week. The
Source: Brazilian Health Ministry
THE WALL STREET JOURNAL.
Tax Cuts in Budget virus is rarely lethal, and it is
Italy’s parliament approved a usually treated with bed rest fast and how it became such a
2016 budget that introduced and liquids. threat to developing fetuses
measures intended to bolster Health officials believe the isn’t yet understood.
growth by easing the tax burden virus this year alone is respon- Brazil’s mosquito popula-
on Italians, as the government sible in Brazil for an explosion tion has surged over the past
moves away from austerity. of cases of microcephaly, an few years, paradoxically, as a
The measures, valued at extremely rare condition in result of a record drought. As
around €30 billion ($32.7 billion), which babies are born with Brazil’s polluted canals have helped expand mosquito populations. water supplies dried up, anx-
include a €3.6 billion cut in taxes shrunken skulls because their ious residents began storing
on primary residences as well as brains aren’t growing prop- tial causes of microcephaly in outbreak may be the reason emergency water supplies in
cuts in levies on municipal ser- erly. But they say microceph- gestating babies, including health authorities are finding swimming pools, plastic jugs
vices and farm buildings. aly hasn’t been linked to Zika genetic abnormalities, expo- unusual neurological symp- and other containers, creating
Most of the measures will be virus outbreaks before. sure to toxins and maternal toms and disorders for the a huge stock of mosquito-
funded by additional borrowing. On Tuesday, Brazil’s Health alcohol abuse. Dr. Powers said first time, she said. breeding areas.
Prime Minister Matteo Renzi has Ministry released figures there is a “suggestive” link Another reason may be a Microcephaly cases with
argued that more-aggressive showing that as of Saturday, between microcephaly and mutation in the virus, she said, suspected links to the Zika vi-
deficit-cutting would choke the the number of suspected Zika- Zika, but said the connection adding that scientists are rus have been reported in 19
much-awaited recovery. related microcephaly cases couldn’t be confirmed until studying genetic sequences to of Brazil’s 26 states as well as
—Giada Zampano had climbed to 2,782, a surge additional studies have been look at whether changes have the federal district of Brasília,
of nearly 16% from the previ- performed. occurred that could lead to the nation’s capital. But its ef-
ous week. The number of con- No vaccine exists to combat these disorders. fects are being felt most
firmed deaths shot up to 40 the Zika virus. Alarmed health Still, any Zika outbreaks in keenly in poor, northeastern
from 29 over the period. and government officials are the U.S. would be limited, Dr. states including Pernambuco,
By comparison, Brazil had mobilizing communities na- Powers said, because the mos- Paraíba, Ceará and Bahia.
147 cases of microcephaly for tionwide to battle mosquitoes quitoes that carry it aren’t Jussara Araujo, health sec-
all of 2014. and have enlisted the help of present year-round. retary of Itapetim, in Pernam-
“This is probably the larg- international health agencies, With the Southern Hemi- buco, said the town had re-
est outbreak of Zika ever re- including the World Health Or- sphere’s summer vacation sea- corded 11 suspected cases of
corded,” said Ann Powers, act- ganization and the CDC. son now under way and the Zika-related microcephaly
ing chief of the arboviral The virus is carried by the nation gearing up for an influx since October. But because the
diseases branch at the Atlanta- Aedes aegypti and Aedes al- of tourists for the 2016 Olym- municipality of 13,800 lacks
based Centers for Disease bopictus species, the same pic Games in Rio de Janeiro, adequate medical infrastruc-
Control and Prevention. mosquitoes that transmit den- some Brazilian officials say ture, pregnant mothers sus-
“There’s a lot of concern about gue and a similar disease, chi- they fear the infection rate pected of being infected had to
what it means, what the impli- kungunya. Those mosquitoes could surge in coming months. be taken to the state capital of
cations are, and what we can populate the southern U.S., The Zika virus first sur- Recife, about 220 miles away.
potentially do for containment Caribbean, Central and South faced in Africa in the late “We are very saddened,”
and control.” America, Dr. Powers said. 1940s. Exactly how it reached Ms. Araujo said. “We have no
There are multiple poten- The size of the Brazilian Brazil, why it is spreading so experts to handle it.”
to the Swiss Alps for Christ-
mas, he dialed down the blus-
ter, appearing rueful at times.
“I lost faith in our organization
murder or a bank robbery.”
The subject at the top of Mr.
Blatter’s mind Tuesday was the
bitter end of his long associa-
on May 27 with this interven- tion with Mr. Platini, once a
tion by American law enforce- close friend, who helped Mr.
ment,” he said, referring to the Blatter build FIFA and the
dawn arrest of seven FIFA offi- World Cup into a financial jug-
cials and soccer executives on gernaut. Mr. Platini has said he
corruption charges at a Zurich believes the friendship soured
hotel. “And the same day it after Mr. Blatter’s decision to
presented FIFA as a mafia-type seek the FIFA presidency yet
organization.” again in 2015, after saying that
Mr. Blatter wasn’t named in he would step down. In the in-
either of the two U.S. indict- terview, Mr. Blatter said his re-
ments related to corruption in lationship with Mr. Platini was
global soccer, but he is under always respectful, “until he be-
criminal investigation by Swit- gan telling everyone, ‘Don’t
zerland’s Federal Office of Jus- vote for Blatter.’ ”
tice. The Swiss and FIFA inves- Mr. Blatter offered new de-
tigations center on what Swiss tails about the December 2010
authorities call a “disloyal pay- meeting in which FIFA’s ruling
ment” of 2 million Swiss francs Executive Committee voted to
(about $2 million) made in send the 2018 and 2022 World
Cups to Russia and Qatar, re-
spectively. He pointed to two
Mr. Blatter plans to factors that led to the selection Nick Jonas,
appeal the ban of Qatar instead of the U.S., Think It Up Ambassador
which he said he preferred: Mr.
imposed by FIFA’s Platini’s decision to throw his
ethics committee. support behind the Qatari bid,
and a deal between representa-
tives from Spain and Qatar
2011 by FIFA to Mr. Platini, the that Spain would vote for Qa-
head of European soccer’s gov- tar’s 2022 bid in exchange for
erning body. Mr. Platini said Qatar’s support for its joint bid
the payment, which surfaced in with Portugal to host the 2018
September, was for advisory World Cup.
work carried out between 1998 Less than two weeks after
and 2002 as part of a hand- the alleged meeting with Mr.
shake deal. Mr. Blatter has said Sarkozy, Mr. Platini voted for
that if any error was made it Qatar, along with several other
Think It Up is a new movement created to
was administrative, not ethical. European members of the Ex- inspire students to pursue their passions
Both men received eight- ecutive Committee, according through student-powered, teacher-led
year bans Monday, plus fines. to FIFA insiders. Among them
But Mr. Blatter’s was only was the representative from learning projects in classrooms across the
50,000 Swiss francs to Mr. Pla- Spain. country with support from Staples for Students.
tini’s 80,000 Swiss francs. The Spanish and Qatari bid
“He’s a little more expensive teams couldn’t be immediately Students and teachers: How can you
than I am,” Mr. Blatter said, reached to comment. They
laughing. “But this is nonsense. have previously denied making spark great learning experiences in your
According to Swiss law, to sus- a deal to trade votes. But Mr. classrooms today?
pend someone for eight years, Blatter said Tuesday that the
you must have committed a agreement was widely known Think It Up - because the work that students
inside FIFA. “They said it in
the Executive Committee,” Mr. and teachers accomplish today will change our
Blatter said. “It was no secret world tomorrow.
that Spain was with Qatar and
vice-versa.” Join us at
Mr. Blatter said Mr. Valcke
never forgave him for his sus-
pension. “For me, the tickets
had nothing to do with it. It
PHILIPP SCHMIDLI/GETTY IMAGES
was his personal attitude.” He
said that Mr. Valcke harbored
dreams of becoming FIFA pres-
ident, which set him at odds
with Mr. Platini. Powered by
In an email, Mr. Valcke said
he did not dream of becoming Think It Up™ is a program of the Entertainment Industry Foundation, a 501(c)(3) charitable organization. Photo by Patrick Ecclesine
FIFA president.
Sepp Blatter says he is —Matthew Futterman
‘finished’ with soccer. 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
A10 | Wednesday, December 23, 2015
HORSES
Continued from Page One
Busch InBev’s U.S. marketing
vice president so challenging.
Not only is the Belgian-native
responsible for boosting mar-
ket share when beer-drinking
is flagging, but also for how
to best use a herd of fancy
horses and all their accouter-
ments.
When he started his job
last year, he discovered his
advertising and marketing re-
sponsibilities would include
some 175 horses, their 41 han-
dlers, 16 wagon drivers, sev-
eral stables, a travel coordina-
tor and a breeding operation
geared to produce 25 foals a
year. Mr. Socquet visited the
St. Louis stables in an attempt
to meet everyone on his
Clydesdale crew, including
some of the horses like Roger,
Donnie and Sparky.
He was impressed. “They
exude an enormous amount of
power, resilience, confidence,”
he said.
The Clydesdales and Bud-
weiser go way back—to
1933—when the Busch family
sent a six-horse hitch (a horse
and wagon team) across the
East Coast delivering Buds in
FUNDS
Continued from Page One
Sovereign Wealth Fund Insti-
tute, which studies them. That
is twice their size in 2007, and
more than is managed by all the
world’s hedge funds and pri-
vate-equity funds combined, ac-
cording to J.P. Morgan Asset
Management. The number of
funds tracked by the Institute of
International Finance is up 44%
to 79 since the end of 2007.
Nearly 60% of sovereign-wealth-
fund assets are in funds depen-
dent on energy exports.
Now, some funds are shrink-
ing or are being tapped by gov-
ernments as oil revenues fall.
That is forcing them to borrow
or sell investments, potentially
pressuring global markets just
as other investors are pulling
back from risk. Saudi Arabia’s
central bank, which functions in
some ways like a sovereign-
wealth fund as it holds signifi-
cant reserves that are invested
widely, has sold billions in as-
sets this year. Norway says it
plans to tap its fund, the world’s
largest, for the first time in
2016.
The stress from low energy
prices comes at a sensitive time.
At least two funds are em-
broiled in controversy. 1MDB,
which amassed $11 billion in
debt, is the subject of at least
nine investigations at home and
abroad. One of its main financial
backers was an Abu Dhabi fund.
The head of South Korea’s fund
stepped down in the wake of a
public outcry over his plan to in-
vest in the Los Angeles Dodgers
baseball team.
Officials at 1MDB declined to
comment. Previously, they said
they would cooperate with all
investigations.
Uncertainty
Adnan Mazarei, deputy direc-
tor of the International Mone-
tary Fund’s Middle East and
Central Asia Department, says
the worry is sovereign-wealth
funds will be forced to sell dur-
ing a period of already turbulent
markets. “A withdrawal of as-
sets by sovereign-wealth funds
against the background of li-
quidity concerns could lead to
large price movements,” he
says. “Nobody knows how much
or when but the concern is
there.”
Uncertainty is stoked by the
fact that many of the funds
don’t disclose their size, hold-
ings or investment strategies,
making it hard to gauge what
risk, if any, they pose to the
global financial system. While
others provide clear disclosure
and have good governance, sov-
ereign-wealth funds constitute a
large blind spot in the markets,
analysts say.
Global financial regulators
are investigating “potential vul-
nerabilities” of sovereign-wealth
funds that could affect world
markets, the Basel-based Finan-
cial Stability Board said in Sep-
tember. An FSB spokesman says
it is too soon to comment on the
analysis.
Sovereign-wealth funds are
largely funded by commodity
revenue and foreign-exchange
reserves. Their ranks can in-
clude government pension plans
and economic development
funds like Malaysia’s 1MDB and
Samruk, which was established
in 2008 to hold Kazakhstan’s
Members of the St. Louis Clydesdale team get their feathery-white
feet washed by handler Kat Metzger and hitch driver John Clark.
celebration of the end of pro-
hibition.
Since then, the draft horses
have become beloved corpo-
rate icons like the Wells Fargo
stagecoach and the Coca-Cola
polar bears—except that they
live and breathe. When they
show up, people turn out. In
Ambler, Pa., earlier this
month, an estimated 20,000
people turned out to see them
in a holiday parade. In Texar-
kana, Texas, people recently
lined up for four hours to get
photos with a Clydesdale. And
about 500,000 visit Grant’s
state companies with an eye to
selling them off and investing
the proceeds.
As emerging markets grew
wealthier, many countries
started sovereign-wealth funds.
More than three-quarters of as-
sets are in funds from emerging
markets, with many of the big-
gest based in the Middle East
and Asia. The latest wave comes
from Africa.
“In the old days you built
armies,” says Jayne Bok, head of
sovereign advisory in Asia for
consulting firm Towers Watson.
“Now you build a sovereign-
wealth fund.”
Many have kept funds in low-
risk, highly liquid investments.
But as assets grew and global
yields tumbled, some invested
more in less-liquid assets. They
bought real estate, took big
stakes in companies and made
other hard-to-trade invest-
ments.
Government investment
funds have borrowed roughly
$100 billion since 2007, accord-
ing to figures reported to Dea-
logic and analyzed by The Wall
Street Journal. About two-thirds
of that borrowing has come
from net oil exporters such as
Bahrain and Kazakhstan.
Selling is picking up. Sover-
eign-wealth funds yanked
roughly $100 billion from asset
managers in the six months to
Sept. 30, according to Morgan
Stanley. “The countries that
have accumulated these vast re-
serves over the last 20 years
will be dipping into those re-
serves,” Martin Gilbert, chief ex-
ecutive of $430 billion Aberdeen
Asset Management, told report-
ers in November. “It could be a
difficult 2016.”
The Saudi Arabian Monetary
Agency sold close to $2 billion
of European shares this year
through November, according to
Nasdaq. Its reserves have fallen
13% to $647 billion in the 12
months through the end of Oc-
tober. The agency didn’t re-
spond to inquiries.
In South Korea, where the
government tracks foreign own-
ership of stocks, Saudi state-
owned investment funds have
sold local stocks for six months
straight totaling roughly 3.6 tril-
lion won ($3.1 billion), according
to people familiar with the mat-
ter and official regulatory data.
The International Monetary
Fund, examining the fallout of
low oil prices, said in October
that a large-scale liquidation of
government funds’ extensive
bondholdings could drive up in-
terest rates. “A substantial
change in the path of asset ac-
cumulation by sovereign wealth
Sovereign-wealth
funds, analysts say,
constitute a large
black box in markets.
funds,” it said, “will likely have a
direct effect on financial mar-
kets.”
U.S. Federal Reserve econo-
mists have estimated that five-
year Treasury rates would rise
by about 0.40 to 0.60 percent-
age point if foreign official in-
flows into U.S. Treasurys were
to decrease by $100 billion in
any given month. That would
push rates to their highest level
since 2011.
Predicting a sovereign-fund
selloff’s impact is difficult be-
cause many funds disclose al-
FROM PAGE ONE
Farm in St. Louis each year to
see the 50-plus draft horses
stabled there.
Some of the most avid fans
have been jittery since 2008,
when the Busch family sold
Anheuser-Busch to the no-
nonsense Brazilian manage-
ment team at InBev. What
would the new owners, fa-
mous for their cost-cutting,
do with a herd of Clydesdales?
Feeding a Clydesdale costs
about $500 a month, accord-
ing to Jim Poole, the retired
manager of the Budweiser
Clydesdales, who owns 25
Vladimir Putin spoke with the emir of Kuwait upon a November agreement between Russian and Kuwaiti sovereign-wealth funds.
Government Riches
Estimated assets in sovereign-
wealth funds
$8 trillion
Total Oil- and
assets gas-related
6 GeoEconomica, a Swiss political-
4
2 competitive edge,” says a GIC
0
’05 ’07 ’09 ’11 ’13
Source: Sovereign Wealth Fund Institute
THE WALL STREET JOURNAL.
most nothing. “The problem
with sovereign wealth funds is
that too often they prove to be
‘black boxes’ into which funds
are deposited in a non-transpar-
ent fashion,” says Sarah Chayes,
a former special adviser to the
chairman of the U.S. Joint Chiefs
of Staff and a senior associate at
the Carnegie Endowment for In-
ternational Peace, where she re-
searches corruption.
There is a push to get funds
to adhere to a voluntary code of
conduct known as the Santiago
Principles, which calls for an-
nual reporting, clear governance
rules and effective risk manage-
ment, among other things. The
chairman of the International
Forum of Sovereign Wealth
Funds, Adrian Orr, has said he
wants members to adopt the
highest standards of transpar-
ency and governance.
“Not doing so bankrupts the
principles, leaving them worth-
less for all,” Mr. Orr said in Sep-
tember. He also runs New Zea-
land’s Super Fund, which invests
government money to fund fu-
ture pension payments.
But Mr. Orr has little power
to get funds to comply, as mem-
bership in the forum doesn’t re-
quire funds to implement the
high standards he is urging. At
least five of the 29 forum mem-
bers don’t publish public annual
reports. At least four don’t dis-
close their asset size.
Clydesdales. It takes nine
semi-trucks and three vans to
transport them. The brewery
runs a wagon-driving program
to teach hitch drivers, and it
maintains dozens of handlers
like Kat Metzger, who on a re-
cent afternoon tended to
TRIPP MICKLE/THE WALL STREET JOURNAL
horses Levy and Rock as they
played tag in a nearby pad-
dock and frolicked in the mud.
She and the other handlers
ensure the horses get daily
massages, weekly haircuts and
new shoes every six weeks.
Training a Clydesdale takes
years. Colts go off to “prep
school” at Grant’s Farm every
year to learn how to interact
with adoring fans. Top horses
then go to Merrimack, N.H., to
try out for the traveling team.
Others become “hero horses”
who star in commercials after
learning special tricks like
rearing on command or jump-
ing fences.
And then there are the Dal-
matians. The Clydesdales are
so big that the mascots for
Budweiser have their own
mascots—three Dalmatians
named Clyde, Barley and
April, who travel with the
team.
Mr. Socquet won’t say how
much the whole thing costs.
“Funding is not an issue,” said
Jeff Knapper, general manager
Singapore’s GIC and the Qa-
tar Investment Authority were
named to the forum’s board in
September. While both have
signed up to the Santiago Prin-
ciples, GIC is only partially com-
pliant and Qatar is noncompli-
ant, according to analysis by
risk advisory firm. Neither dis-
closes how much money it man-
ages. Qatar doesn’t publish an
annual report.
“We do not report on invest-
ment specifics, to safeguard our
spokeswoman. The GIC takes
the Santiago Principles seri-
ously, she says. The Qatar fund
said last year it would publish
’15 an annual report, which its web-
site says is “coming soon.” A
fund spokesman declined to
comment. “It is not part of IF-
SWF’s mandate to comment on
member practices,” Mr. Orr says
in an interview.
The case of 1MDB
The situations at Malaysia’s
1MDB and Abu Dhabi’s Interna-
tional Petroleum Investment
Co., or IPIC, are examples of ex-
ploitation of weak oversight at
government investment funds,
says Ms. Chayes, the former U.S.
special adviser.
Executives at 1MDB are sell-
ing assets to repay debt. The
new management at IPIC is now
trying to determine how the
fund guaranteed bonds and in-
vestments by 1MDB valued at
more than $7 billion, say people
familiar with the matter.
IPIC and U.A.E. spokesmen
declined to comment for this ar-
ticle.
The deals between IPIC and
1MDB began in 2009 with a pub-
lic promise by Abu Dhabi to in-
vest $1 billion in projects along-
side the newly formed 1MDB. It
is unclear how the commitment
transformed into guarantees for
1MDB. Those include $3.5 billion
of bonds, about $1.5 billion of
interest on those loans over
their lifetime and $2.3 billion of
investments with a Cayman Is-
lands-registered fund, according
to company documents and peo-
ple familiar with the deals.
The transactions occurred
THE WALL STREET JOURNAL.
of the Clydesdale operation.
Even if the most hard-
hearted company bean coun-
ters wanted to cut back, they
would be hard pressed to do
so given the fan reaction to
last year’s decision to discon-
tinue Bud’s traditional holiday
ad showing the 2,000-pound
steeds trotting through rural,
snowy landscapes decked out
in jingle bells and pulling a
red wagon.
When that news broke,
Clydesdale lovers stampeded
the company’s phone lines
with hundreds of calls. Ms.
Kidd of Jerome, Idaho, started
her “Keep the Budweiser
Clydesdales” Facebook page
and was amazed when more
than 13,000 liked it.
“The American people be-
lieve the Clydesdales belong
as much to them as to us,” Mr.
Socquet says.
The company is committed
to the horses, Mr. Socquet
says, but is working on chang-
ing their image to make them
less, well, picturesque, and
more macho.
Budweiser has been losing
volume in the U.S. in part be-
cause around 40% of young,
legal-age drinkers have never
even tried the King of Beers.
Sales of the beer have im-
proved this year behind a
under IPIC’s managing director,
Khadem Al Qubaisi, who took
over in 2007. Under Mr. Al
Qubaisi, the fund’s net debt
grew almost tenfold to $24.6
billion.
Executives now digging into
IPIC’s operations also found a
subsidiary of the fund bought
shares of a publicly listed con-
struction company from an as-
sociate of Mr. Al Qubaisi’s and
bought large amounts of land
from the private investment ve-
hicle of the fund’s chairman,
Sheikh Mansour Bin Zayed Al
Nahyan, say people familiar
with the matter. Sheikh Man-
sour didn’t respond to inqui-
ries.
In a rare presidential decree
in April, Mr. Al Qubaisi was re-
placed at IPIC. A London-based
representative of Mr. Al Qubaisi
says he declined to comment.
The new managing director, Su-
hail Al Mazrouei—he is also the
country’s energy minister—or-
dered a review of the company
with a view to returning to its
original mandate of investing in
oil and gas projects. Mr. Al Maz-
rouei didn’t respond to inqui-
ries.
Long-running concerns about
sovereign-wealth funds have
centered on the idea that they
don’t behave like traditional in-
stitutional investors, which typi-
cally invest only to produce re-
turns. Sovereign funds often
answer to top government offi-
cials and may invest not only to
produce returns but also to fur-
ther government initiatives,
usually focused on economic de-
velopment or diplomacy.
Those concerns peaked be-
fore the financial crisis when
the funds were seen as “agents
of the state executing ‘check-
book’ foreign policy strategies,”
said the sovereign-wealth fo-
rum’s Mr. Orr in September.
But after the financial crisis
hit, political concerns faded,
says Jukka Pihlman, head of
central banks and sovereign-
wealth funds at Standard Char-
tered PLC. “Many countries just
wanted the capital,” Mr. Pihlman
says. “The tables turned quite
significantly.”
Other countries’ sovereign-
wealth funds quickly came to
new, hard-hitting campaign—
“Brewed the Hard Way”—
which portrays Bud as a
“Macro Beer,” not one of
those pretentious, hipster, mi-
crobrewed craft beers.
So AB InBev has put the
Clydesdales to work. It is
scrapping portrayals of the
horses as regal show stoppers
and Norman Rockwellesque
creatures in Christmas
scenes—the reason it took
them off the stage last Decem-
ber. The company instead is
emphasizing their power,
strength and masculinity. (To
ensure a similar size and
build, every Budweiser
Clydesdale is a male.)
The company’s new holiday
spot shows a short flash of
Clydesdales hitched up to
their red wagon, tromping to-
ward a Budweiser tree-light-
ing party at the St. Louis
brewery.
“We’re proud to be big and
the Clydesdales are the big-
gest horses out there,” Mr.
Socquet said. “We’re using
them to represent how macro
we are.”
But die-hard fans like Ms.
Kidd are unimpressed. “I like
it because the horses are in it,
but I like the ones that feature
only the horses better,” she
said.
RUSSIAN DIRECT INVESTMENT FUND VIA FLICKR
the aid of the Russian Direct In-
vestment Fund, or RDIF, when
U.S. and European sanctions re-
stricted business between the
fund and Western companies.
The fund is on the U.S. sanctions
list drawn up to punish Moscow
for annexing Crimea last year.
In June, Russian President
Vladimir Putin hosted his an-
nual dinner for foreign investors
in a seaside palace built for Pe-
ter the Great. Around the table
were officials of sovereign-
wealth funds who together man-
age trillions in assets, according
to RDIF, which organized the
gathering. Representatives of
funds from China, Abu Dhabi,
Qatar, Bahrain, South Korea,
Iran, France and Italy attended
the conference during which the
meeting was held, according to
a Russian-language statement
on the Kremlin’s website.
Korea Investment Corp., the
Abu Dhabi Investment Authority
and Bahrain’s Mumtalakat fund
confirmed their officials at-
tended the conference. The Qa-
tari and Kuwaiti funds declined
to comment. The Chinese, Ital-
ian and French funds didn’t re-
spond to inquiries.
One important new guest:
Prince Mohammed bin Salman,
the 30-year-old Saudi Arabian
defense minister and second in
line to the throne. He agreed the
next month to invest $10 billion
in Russia. A few months later, a
Kuwaiti sovereign fund pledged
$500 million, raising its total
commitment to $1 billion.
“The headline may seem po-
litical, but, in fact, it is not a
blank check,” a Saudi official
says, adding that Russian in-
vestments offer among the
highest yields in the world. Ku-
wait Investment Authority exec-
utive director Ahmad Bastaki
declined to comment.
“For us, it’s about finding
additional money to invest in
Russia,” says Kirill Dmitriev, the
Russian fund’s chief executive.
The fund is “nonpolitical” and
focused on returns, he says.
“Those sanctions really do not
affect our work much.”
—Ahmed Al Omran in Riyadh,
Juliet Samuel in London and
Kwanwoo Jun in Seoul
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.
The Good, the Bad and the Shkreli
“He stayed
there two
weeks, dis-
mayed at its
ferocious in-
difference to
the drums of
BUSINESS
WORLD his destiny,
to destiny it-
By Holman W.
self, and de-
Jenkins, Jr.
spising the
janitor’s
work with which he was to pay
his way through.” —F. Scott
Fitzgerald, on the brief college
career of his title character in
“The Great Gatsby.”
“My parents were immi-
grants and janitors. [Trump]
inherited wealth! [Expletive]
him. And I thought we could be
friends.” —Martin Shkreli, dis-
graced pharmaceutical CEO,
quoted in Vanity Fair.
Martin Shkreli, the wun-
derkind and bad boy of phar-
maceuticals who was arrested
last week, takes exception to
the term Ponzi scheme, and
no wonder. If the government
charges are correct, his story
goes like this: In his 20s, he
raised a few million dollars
from acquaintances and tried
to become a hedge-fund im-
presario but almost instantly
lost their money and then lied
to his investors about it.
Thereupon he created what
appears to have been a suc-
cessful pharmaceutical com-
pany from which he allegedly
illegally transferred cash and
shares to placate his previous
investors. When the company
understandably fired him and
Beyond the Trump-Putin Bromance
D o n a l d
Trump’s bud-
ding bromance
with Vladimir
Putin is shock-
ing but, on re-
POLITICS flection, not
surprising.
& IDEAS
Each is an
By William
ardent, un-
A. Galston
abashed na-
tionalist. Each
believes that his country has
declined from its former
greatness, to which it must be
restored. Both worship
strength and despise weak-
ness. Both believe that the end
justifies the means. And each
is a case study in the patholo-
gies of narcissism.
It is easy to understand how
a man like Mr. Putin could rise
to power in the rubble of the
former Soviet Union. The 1990s
left Russia freer but poorer and
weaker. Mr. Putin felt a deep
sense of national humiliation
and was shrewd enough to
understand that many Russians
shared his feeling. He saw the
vulnerability of the new rich
created by a program of pell-
mell privatization: Reining
them in would be a crowd-
pleaser, even if it replaced the
“oligarchs” with his own cro-
nies. Above all, he understood
that the urban elites who led
the push for democracy lacked
a mass base and that the tradi-
tional resentments of small-
town and rural Russians could
be used to marginalize them.
It is harder to understand—
at first glance, anyway—Mr.
Trump’s staying power at the
Ghosts of Presidential Christmases Past
By Tevi Troy
L
ike much of America, the
White House celebrates
Christmas with glittering
decorations, festive parties and
hopeful messages. Yet despite
the merriments, Christmas can
be a stressful time for presi-
dents. Political intrigue and a
dangerous world never take a
holiday. That’s why presidents
have tended to greet the season
with great joy, but also with
contemplation and even sad-
ness.
Some presidents faced chal-
lenges from within. Richard
Nixon owned a colorful smok-
ing jacket he donned for Christ-
mas festivities, but the season
did little to mute his raging
insecurities. According to Bob
Woodward’s new book, “The
Last of the President’s Men,”
during Nixon’s first Christmas
Eve as president he walked
through the White House and
was depressed by the abun-
dance of John F. Kennedy pic-
tures displayed. Nixon de-
manded that they all come
sued over these actions, he
created a second apparently
successful drug company.
The first company, Retro-
phin, even after the contro-
versy and bad headlines of the
past week, is still worth $730
million in the market, a large
multiple of his alleged hedge-
fund losses.
The second company, Turing
Pharmaceuticals, is not pub-
licly traded but owns lucrative
drug rights and apparently
continues to realize profitable
sales.
Even as he committed
his alleged frauds,
some called his drug
expertise ‘humbling.’
Awkward questions natu-
rally come up. Going by Retro-
phin’s private lawsuit against
Mr. Shkreli, its former CEO,
which gives names and dates,
he wasn’t exactly operating
behind a veil. Some of his
investors are fairly prominent
names whose make-good for
their hedge-fund losses alleg-
edly came in the form of
“sham consulting agreements”
that Mr. Shkreli provided
through his company Retro-
phin. Will these investors
soon be hearing a federal
knock on the door?
Even as Retrophin was fir-
ing him for alleged fraud, it
struck a deal to let him take
some of its drugs under devel-
opment. Hmm. And despite
top of the Republican Party. To
be sure, as I and others have
argued, he has mobilized and
championed the white working
class, a key but long-neglected
cornerstone of the Republican
base. And he has exploited the
mistrust much of the grass
roots harbors toward candi-
dates and political operatives
who have promised much more
than they delivered.
But Mr. Trump’s strength re-
flects mainly the weakness of
the moderate-conservative es-
tablishment wing of the Repub-
lican Party during this nomi-
nating campaign. In previous
cycles, evangelical conserva-
tives often prevailed in the
Iowa caucuses, only to hit a
wall in New Hampshire.
In 2008 former Arkansas
Gov. Mike Huckabee, an or-
dained Baptist minister, fin-
ished first in Iowa with 34% of
the vote, while Sen. John Mc-
Cain, the eventual Republican
nominee, came in fourth with
only 13%. Less than two weeks
later, Mr. McCain received 37%
of the vote in the New Hamp-
shire primary, compared with
11% for Mr. Huckabee. In 2012
the religious conservative
champion Rick Santorum
edged out Mitt Romney in
Iowa with 25% of the vote but
collapsed to only 9% in New
Hampshire while Mr. Romney
surged to 39%.
There is not much evidence
that anything similar is unfold-
ing this time. The Real Clear
Politics average of recent sur-
veys shows the evangelical
favorite, Texas Sen. Ted Cruz,
down: “Down from the walls
and off the desks. Jesus
Christ!” Nixon is quoted as say-
ing. “If we’ve got this kind of
infestation imagine what [Sec-
retary of State] Bill Rogers has
in the State Department.”
Nixon was a unique charac-
ter. But even the normally up-
beat Gerald Ford became some-
what touchy at Christmas. Ford
was mocked in the media as a
klutz, even though he was an
excellent athlete. (A “Saturday
Night Live” sketch in December
1975 had Chevy Chase as Ford
knocking over the White House
Christmas tree.)
According to Ford’s press
secretary Ron Nessen, however,
the only time he saw the presi-
dent upset about his media
treatment was on a Christmas
break in Vail, Colo. As re-
counted in Kenneth T. Walsh’s
2005 book, “From Mount Ver-
non to Crawford: A History of
Presidents and their Retreats,”
Mr. Nessen heard the president
“ruefully” say: “You know,
those reporters get most of
their exercise on the bar stool.”
OPINION
the swirling complaints that
followed him from his hedge
funds and Retrophin, Mr.
Shkreli claimed he raised $90
million for his new company,
Turing. At least $55 million of
this money apparently was
real: He bought the U.S. rights
to Daraprim, the aging, off-
patent drug that made him a
near-household name (not in
a good way) months before
any federal indictment sur-
faced.
Unknowable at this point is
whether any of Mr. Shkreli’s
apparently creditable designs
on new-drug development will
ever pay off. Multiple industry
executives, investors and drug
scientists have spoken of what
one called the untrained 32-
year-old’s “humbling” insights
into biopharmacology.
We’ll have to see. Mean-
while, undoubtedly due to his
urgent need for money to
silence his irate hedge-fund
investors, his immediate strat-
egy at both Retrophin and
Turing was to acquire the
rights to old drugs and jack
up the prices. Voilà, in an
election year, a passport to in-
famy. Off-patent drugs that
treat rare conditions are
evidently extortionate price
hikes waiting to happen. Any
generic copycat would have to
pass through the FDA’s com-
plicated, expensive approval
rigmarole, which isn’t worth-
while for a drug that treats a
small population.
Let’s not deceive anyone.
Established companies like
Valeant, Questcor, Rodelis,
Merck, Pfizer and others also
leading with 30% in Iowa com-
pared with 26% for Mr. Trump
and 13% for Florida Sen. Marco
Rubio, the leading establish-
ment candidate.
In New Hampshire, Mr.
Trump holds a solid lead with
28% while Mr. Cruz is tied for
second with 12%. Support for
the four establishment candi-
dates—Mr. Rubio, New Jersey
Gov. Chris Christie, Ohio Gov.
John Kasich and former Flor-
ida Gov. Jeb Bush—totals 39%,
The Donald’s strength
reflects mainly the
weakness of the
establishment GOP.
exactly what Mr. Romney re-
ceived four years ago and more
than enough to prevail. But
that share of the vote is
divided almost evenly among
the four, preventing any one of
them from emerging as the
establishment champion.
That could change. A survey
released two weeks ago by
CNN/WMUR found that fully
56% of voters likely to partici-
pate in the New Hampshire
Republican primary were still
trying to decide which candi-
date to support. But there are
no signs as yet that these
voters are in the process of
coalescing around a single
representative of the estab-
lishment. Complicating their
choice, most of the candidates
have been campaigning flat-out
Sometimes, the holiday spirit
is displaced by unexpected
events. One disastrous Christ-
mas took place early in Bill
Clinton’s presidency. On Dec.
20, 1993, the American Specta-
tor released its famous article
“His Cheatin’ Heart,” which
told of Mr. Clinton’s shenani-
gans with women in Arkansas
and started the chain of events
that led to the Clinton impeach-
ment and Senate trial.
In his 1996 book “Boy Clin-
ton: The Political Biography,”
American Spectator editor Bob
Tyrrell claimed the article
made Mrs. Clinton scream so
violently that she “alarmed the
White House staff and sent the
president scrambling down the
elevator from the family quar-
ters in a state of dreadful
agitation.”
Our current president has
had his own Christmas chal-
lenges. Shortly before the 2011
holiday, Mr. Obama waited in
the White House to see if the
administration and Congress
could agree on another must-
pass spending bill. New York
hike prices. Indeed, every
seller of a medical good or
service charges what the mar-
ket will bear in a system
where market discipline is
attenuated and distorted by
third-party payership.
Mr. Shkreli’s story, further-
more, wouldn’t be possible
without a drug-approval sys-
tem that vastly inflates the
cost and undermines the
incentive to create new drugs.
At the same time, it also
wouldn’t be possible without
the not-unattractive fact that,
in what remains a fairly free
society, anybody can hang out
a shingle as an investment
manager for “accredited in-
vestors,” i.e., people with
enough money that they’re
assumed to know what they’re
doing.
Finally, his story wouldn’t
be possible without the enor-
mous excitement and promise
of genetic medicine, about
which Mr. Shkreli seems to
have acquired genuine exper-
tise even while allegedly com-
mitting the remarkable litany
of frauds detailed in the gov-
ernment’s complaint.
For instance, Mr. Shkreli
may well have been onto
something with respect to
new treatments for certain
genetically based neurodegen-
erative diseases.
It all brings to mind the
Chinese Communist Party’s
labored verdict in the 1980s
that Mao was 70% good and
30% bad. Maybe the CCP can
lend us expertise to differenti-
ate the good Mr. Shkreli from
the bad.
in the Granite State. As of last
week, Mr. Christie had spent 54
days there, Mr. Kasich 40 and
Mr. Bush 34. By contrast, Mr.
Rubio has devoted only 12 days
to the state. Unless he finishes
better than a distant third in
Iowa, Mr. Rubio seems unlikely
to arrive in New Hampshire on
Feb. 2 with enough momentum
to break the logjam.
This matters because New
Hampshire occupies a pivotal
position in the race. Since the
creation of the modern nomi-
nating process in 1972, no
candidate of either party who
finished worse than second in
New Hampshire has gone on
to win his party’s nomination.
This year could be different,
but I wouldn’t bet on it.
Unless an establishment
candidate breaks away from
the pack in New Hampshire,
party leaders may well face a
prospect they dread—a head-
to-head contest between
Donald Trump and Ted Cruz.
No matter who wins, they
lose. And even if one of the
four establishment candidates
does better than expected, the
likely result would be a pro-
tracted triangular battle.
One thing is clear: Unless
the establishment field nar-
rows quickly, the champions
of the party’s populist and
hard-right factions will enjoy
an enormous advantage as the
contest shifts south. Will the
establishment’s elected lead-
ers and major donors be able
to rally around a single candi-
date in time to avert a defeat
of historic proportions?
Times reporter Mark Landler
wrote that Air Force One was
“sitting on the tarmac while the
White House press corps and
the staff wondered whether Mr.
Obama would end up padding
around the residence alone on
Christmas morning.” He even-
tually got to Hawaii in time for
the holiday.
Presumably, every president
wants to have a restful holiday.
Dwight Eisenhower, who listed
his three favorite Christmas
songs as “Silent Night,” “Adeste
Fideles” and “The First Noel,”
saw Christmas as a time to
watch movies with family and
friends. Such moments satisfy
the universal human needs for
rest, reflection, family and,
when the time is right,
prayer—even if, in the case of
presidents, duty calls every day
of the year.
Mr. Troy is the author of
“What Jefferson Read, Ike
Watched and Obama Tweeted:
200 Years of Popular Culture
in the White House” (Regnery
History, 2013).
Wednesday, December 23, 2015 | A11
BOOKSHELF | By Patrick J. Geary
Take Him Up,
Gather Him
Augustine
By Robin Lane Fox
(Basic Books, 657 pages, $35)
I
n a graduate seminar at Yale many years ago, two of my
classmates balked at reading Augustine’s “Confessions.”
One declared that he could not read the text as a de-
tached scholar because every sentence spoke to the very ex-
istential questions with which he himself was grappling.
The other declared that anyone who, as an adult, obsessed
about his childhood theft of fruit from a neighbor’s orchard
was a neurotic whose ravings were not worth reading. Both
men dropped out, the first to enroll in Harvard Law, the
second to divorce his wife and join a gay commune.
The 1970s were a strange decade. But the question re-
mains whether, in our secular age, Augustine’s “Confes-
sions,” an extended prayer addressed not to the readers but
to God, can continue to
reflect the human condi-
tion or whether it must
be understood simply as a
document of a late fourth-
century Roman provincial.
In taking on the challenge
of a biography of Augustine
from his birth in 354
through his composition of
the “Confessions” in 397,
Robin Lane Fox, the distin-
guished Oxford classicist,
faces a daunting task: To
write something fresh about
this foundational figure in
Christian thought, something
that could add to Peter Brown’s classic
“Augustine of Hippo” and James O’Donnell’s compelling
“Augustine: A New Biography.” He does so by framing Au-
gustine between two contemporaries.
The first figure, Libanius (314-93), was older than Augus-
tine, a traditional pagan and admirer of the Emperor Julian
(the “Apostate”). Like Augustine, he was a professional
rhetorician. The second, Synesius (373-414), was a bit youn-
ger than Augustine and hailed from a wealthy Greek family
from what is today Libya. Although a Christian, he was a
pupil, in his youth, of the great Neoplatonist female philos-
opher Hypatia in Alexandria, and he remained throughout
his life devoted to philosophy as well as to the life of a
married aristocrat (even after his election to the episco-
pacy). He wrote poetry, hunted in the Libyan desert and led
troops against barbarian raiders in North Africa.
By contrasting Augustine’s options, choices and career
with those of these two men, Mr. Fox makes all of them
more comprehensible. Augustine’s family background, for
instance, was mediocre, as was his patronage network,
when compared with those of Libanius and especially Syne-
sius. His rhetorical education had been in Latin, not in the
more intellectually respectable Greek, which Libanus mas-
tered. The young Augustine was fascinated by Cicero, whom
he venerated as the great Roman orator but even more for
his exhortation to the pursuit of wisdom, a pursuit that
Augustine was a man obsessed with sex. It was
the cause of his conversion crisis, which ended
when he heard a child’s voice saying ‘tolle, lege.’
never interested Libanius. Augustine’s own search for wis-
dom led him initially to embrace Manichaeism, a dualist re-
ligion that combined and sought to complete elements of
Buddhism, Zoroastrianism and Christianity. Later in Italy he
discovered Neoplatonism, which provided him with a pow-
erful philosophical tradition through which to interpret
Christian teachings, to which he was increasingly drawn.
Augustine’s struggles against his own sexual desires culmi-
nated in his dramatic conversion, followed by the creation
of a commune of like-minded Christians.
Mr. Fox goes on to treat his subject’s return to Africa, his
ordination, polemics and eventual elevation to the episco-
pacy. Though he touches on many familiar aspects of Au-
gustine’s life, he is especially insightful on Manichaeaism, a
world religion that continued to influence the structure of
Augustine’s thought. Thus the final chapters of his “Confes-
sions,” rather than continuing the story of his spiritual
journey, become a commentary on the book of Genesis, and
implicitly a refutation of the Manichaean cosmology.
Mr. Fox traces with clarity the development of Augus-
tine’s thought, but also of his character, his deep relation-
ship with his mother, Monica, and his engagement with his
network of friends, patrons and intellectual adversaries
such as the Manichaean priest Fortunatus with whom he
held a public debate in August of 392. The discussions of
Augustine’s early dialogues and letters do not always make
for light reading, but they are always worth the effort.
Mr. Fox’s Augustine emerges as a brilliant young seeker
formed but not controlled by his past. He was limited intel-
lectually by his ignorance of Greek—an ignorance that both
prevented direct access to much of Neoplatonic philosophy
and to a correct understanding of the language of Paul’s
Epistles. Mr. Fox’s Augustine is also a man obsessed with
sex, which to the author seems to be the root cause of his
conversion crisis that ended dramatically in the famous
scene in the garden when he hears a child’s voice saying
“tolle, lege” (“take it up, gather it” or perhaps “take it up,
read it”). What he read was the letter to the Romans: “Let
us live honorably as in the day, not in reveling and drunk-
enness, not in debauchery and licentiousness, not in quar-
reling and jealousy. Instead, put on the Lord Jesus Christ,
and make no provision for the flesh, to gratify its desires.”
Here, perhaps, Mr. Fox is not entirely fair to Augustine,
just as my long-ago friend could not understand Augustine’s
ruminations on the theft of fruit: The struggle with sex, like
his childhood delinquency, was for Augustine primarily evi-
dence of the flawed nature of human will. As he looked
back on his life from his 40s, Augustine identified the cen-
tral flaw in postlapsarian human nature as willful rejection
of the divine in favor of human desires, of which lust was
not the most serious but certainly the most obvious mani-
festation. At the same time, Mr. Fox succeeds in offering us
a figure whose inner and outer struggles, whose strengths
and weaknesses, do somehow reach across the centuries
and touch something profoundly human. For believers and
non-believers alike who find themselves restless, alienated
and searching, I can only repeat the voice of the child heard
in the garden: “Tolle, lege.”
Mr. Geary is a professor at the Institute for Advanced
Study.
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A12 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Brushing Back a Lawless EPA Anonymous Sources Used to Accuse Theranos

P
resident Obama continued to use execu- Mr. Obama sought an additional $72.1 mil- Since October, The Wall Street complaints, many of which are not
tive agencies to exceed his constitu- lion to turbocharge his extralegal climate rule Journal has published a series of substantiated. Theranos trusts its
anonymously sourced accusations regulators to properly investigate any
tional power in 2015, none more so than on power plants. That request included $8.3 that inaccurately portray Theranos. complaints.
the Environmental Protection million for the EPA’s science Now, in its latest story (“U.S. Probes The Journal has relied almost en-
Agency. The courts have Congress crimps its and technology groups, which Theranos Complaints,” Dec. 21), the tirely on anonymous sources—with-
pushed back on occasion, and budget and forces do the phony modeling to jus- Journal once again is relying on out disclosing those sources’ qualifi-
now Congress is beginning to tify regulations. It also in- anonymous sources, this time report- cations, biases, affiliations, motives,
use its powers to do the same. two Obama vetoes. cluded $68.3 million for the ing two undisclosed and unconfirmed or even how recently they were em-
Though it didn’t get much agency’s environmental pro- complaints that allegedly were filed ployed. Theranos has not only made
media attention, Congress grams and management de- with the Centers for Medicare and its top scientists and engineers avail-
used the Congressional Review Act to put two partment, which is where the minions draft and Medicaid Services and U.S. Food and able to the Journal, but has provided
bills blocking EPA rules on Mr. Obama’s desk implement the President’s climate initiatives. Drug Administration. exhaustive information and on-the-re-
Theranos remains actively engaged cord statements to address every al-
the past two months. One would have nullified Congress denied every penny.
with its regulators, including CMS legation raised by the Journal.
the EPA’s draconian new Clean Power Plan that It also denied the nearly $30 million extra and the FDA, and no one, including Theranos initiated filings with the
will force lower emissions from existing power that Mr. Obama wanted for the legal department The Wall Street Journal, has provided FDA two years ago by choice because
plants. A second measure is designed to block that defends the agency in court. The Presi- Theranos a copy of the alleged com- the company believes that to be the
new coal-fired plants. dent’s budget request complained that “over the plaints to those agencies. Because right path to realize its mission.
The Congressional Review Act allows a bill last five years, the number of lawsuits EPA Theranos has not seen these alleged Theranos will continue to advocate
to pass without 60 votes in the Senate, and the counseling attorneys have handled during a year complaints, it has no basis on which for the right thing, even if it is the
GOP put together a bi- has more than doubled, to evaluate the purported complaints. hard thing, as it provides accessible
partisan majority in increasing from ap- It is not unusual for disgruntled testing at low, transparent prices, to
both houses. Mr. proximately 240 in and terminated employees in the pave the way for earlier detection
Obama rejected both
The Declining EPA Workforce 2009 to well over 500 heavily regulated health-care industry and prevention of disease.
to file complaints in an effort to re- BROOKE BUCHANAN
measures with rare Full-time equivalent employees by federal fiscal year, in 2013.” Well, yes, that
taliate against employers for termina- Vice President of Communications
pocket vetoes that let 1999-2016 happens when you tion of employment. Regulatory agen- Theranos Inc.
a President refuse to 18.5 thousand keep breaking the law. cies have a process for evaluating Palo Alto, Calif.
sign a bill when Con- 18.0 The GOP budget
gress is out of session, doesn’t provide EPA
as it has been since 17.5 the funds to hire addi-
Friday. 17.0
The bills were still 16.5
tional attorneys.
The budget also ze-
The Darker Side of Licensing for Employment
useful in showing Mr. roed out the nearly In “How to Keep the Unemployed beauty-salon structure.
Obama’s hand to vot- 16.0 $44 million increase Out of Work” (op-ed, Dec. 9), Mark Academies graduate tens of thou-
ers in energy states 15.5 Mr. Obama sought for Holden is spot on regarding the sands of students into that system,
beauty industry, which lobbies hard which generates insufficient numbers
and showing the his “water quality pro- to keep licensing requirements in of jobs for them, resulting in (anec-
15.0
courts that the legis- tection” initiatives. At place in every state. It preserves an dotally, because the industry doesn’t
lative branch rejects ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 least some of that
inefficient educational system, as track these numbers) over 70% of
Mr. Obama’s regula- Sources: EPA, House Appropriations Committee money would have academies teach different curricula graduates leaving the industry after
tory interpretation of gone to ramping up the based on state mandates that focus two years of trying and failing. A rec-
Congressional statutes. This could help in par- EPA’s new Waters of the United States Rule that on hygiene, not skill-building. ognized, uniform certification pro-
ticular the 27-state legal challenge to the Clean empowers the feds to regulate just about every Many academies are churn and gram for haircutting, for example, of-
Power Plan. creek and pond in the country. burn operations designed to sign up fered by a reduced number of
Meanwhile, Congress is also using its power of Republicans were able to insert a few modest students who use federal loans for academies and which prepares seri-
the purse to complicate the EPA’s legal evasions. policy riders in the budget. Congress barred the training that may meet minimum ous students to survive in the indus-
state requirements, but inadequately try until they gain experience, will
Conservatives are understandably frustrated that EPA from attempting to regulate greenhouse
prepare graduates who look for and shift the industry paradigm. However,
last week’s budget bill didn’t include policy riders gas emissions from livestock, and it added a re- rarely find jobs that pay enough to every constituent in the food chain
to halt new climate and water regulations— quirement that the Administration inform Con- justify the up to $25,000 in tuition makes too much money or wants to
though GOP disunity didn’t help. But Republicans gress how much it is spending on climate initia- costs. The ineffective training elimi- preserve government jobs to care
did at least pinch the EPA’s budget. tives across the federal bureaucracy. nates entrepreneurship at the grass- about what happens to students in
The EPA received $8.1 billion or $451 million More might have been possible if Democrats roots level, as students lack knowl- the current structure.
less than Mr. Obama had demanded, and no in- hadn’t blocked individual spending bills in the edge and confidence to open their ANTHONY J. PADILLA
crease from the year before. Congress has cut Senate to force a giant omnibus that gave Mr. own business and are forced into the Los Angeles
the EPA’s allowance by $2.1 billion, or 21%, since Obama more leverage by threatening to shut
fiscal 2010. This has forced the EPA to cut more down the government. But the budget pressure
than 2,000 full-time employees over the same on the EPA and the use of the Congressional Re- The Sage of Kirkaldy Addresses Modern Times
period, and its manpower is now at the lowest view Act show that GOP control of Congress has
Thank you for the timely Dec. 8 ety, every single piece has a princi-
level since 1989 (see nearby chart). made a difference. Notable & Quotable from Adam ple of motion of its own, altogether
Smith. Contrast “the prudent man” different from that which the legis-

Beijing Frees a Lawyer with “the man of system,” also

taken from Smith’s “The Theory of
lature might choose to impress upon
it. If those two principles coincide

A
Moral Sentiments”: “The man of and act in the same direction, the
fter 19 months of detention and a prison that authorities threatened to impose. system, on the contrary, is apt to be game of human society will go on
three-hour trial last week, a Chinese Yet Mr. Pu’s prominence at home and overseas very wise in his own conceit; and is easily and harmoniously, and is very
court on Tuesday released renowned may have helped him. Outside his trial last often so enamoured with the sup- likely to be happy and successful. If
human-rights lawyer Pu Zhiq- week, plainclothes security posed beauty of his own ideal plan they are opposite or different, the
iang from prison with a sus- A sign that foreign agents roughed up protesters, of government, that he cannot suf-
fer the smallest deviation from any
game will go on miserably, and the
society must be at all times in the
pended three-year sentence. pressure can help foreign media and even a U.S. part of it. He goes on to establish it highest degree of disorder.” This is
It seems that public pressure Embassy official trying to completely and in all its parts, with- a fair description of the present oc-
and moral suasion can have political prisoners. read statements of support. out any regard either to the great cupant of the White House.
some effect on Beijing. Last month Beijing granted interests, or to the strong prejudices BILL BURBAGE
The court still convicted medical parole to imprisoned which may oppose it. He seems to Cayce, S.C.
Mr. Pu of “picking quarrels” and “inciting eth- journalist Gao Yu, a 71-year-old grandmother imagine that he can arrange the dif-
nic hatred” based on seven social-media posts in deteriorating health whose plight likewise ferent members of a great society
that criticized government officials and state received global attention. with as much ease as the hand ar- You’d Think You’d Meet a
policy toward China’s Uighur Muslim minority. All of which suggests that even President ranges the different pieces upon a
chessboard. He does not consider
Better Class of Folks at Yale
He will be on parole for three years and under Xi Jinping, who last week hosted a World In-
that the pieces upon the chess- The New Criterion article cited (No-
“residential surveillance,” meaning he can’t go ternet Conference while his government
board have no other principle of table & Quotable, Dec. 3) the Boston
abroad or move freely within China and may tried Mr. Pu for sending a few tweets, dis- motion besides that which the hand Globe’s 1980 editorial “More Mush
not be able to practice law again. likes international condemnation. Which is impresses upon them; but that, in From the Wimp” on Jimmy Carter
It isn’t clear why Mr. Pu received a sus- all the more reason not to forsake China’s the great chessboard of human soci- when writing about Yale’s current
pended sentence instead of the eight years in brave dissidents. president Peter Salovey. I remember
hearing Bart Giamatti, a classics pro-
Truth or Dare Cheat: Games fessor and former Yale president who
A Chipotle Education With Your Young Children became baseball commissioner. When
asked about the biggest difference he

T
he executives at Chipotle Mexican Grill derides “factory farming”—last year the com- When I was a little girl, my grand- found between the two jobs, he said
have been, well, dining out for years on pany put out a comedy series about the “utterly parents played anagrams with me. I that in baseball you meet a better
felt sorry for their losing, so I de- class of people. Tongue in cheek?
their self-styled reputation for “food unsustainable world of industrial agriculture”—
cided to “let” them win. No matter IRENE DUNN
with integrity.” So their com- such economies of scale exist how badly I played, they played North Hills, Calif.
petitors who by implication The all-natural to deliver safer food at a lower worse. Years later I realized that we’d
lack integrity can be forgiven evangelists get an price. been playing the same game—let the
if they indulge in a little As it happens, Chipotle’s other win (“The Hardest Game for Back in the Bad Old Days,
Schadenfreude about the com- E. coli reality check. locavore movement is a result Parents,” Personal Journal, Dec. 17). I
$7 a Day Was a Fair Wage
pany’s recent trouble with of the wealth and prosperity never play down to my grandchildren.
food-borne disease. unleashed by efficient agricul- The payoff? A few years ago when my Regarding Lee Edwards’s review of
On Monday the Centers for Disease Control ture. In 1950 food gobbled up more than a quarter younger grandson was 9 years old, he Kathryn S. Olmsted’s “Right Out of
and Prevention said it is investigating another E. of household spending. That figure has plum- beat me at a game of chess. It’s hard California” (Bookshelf, Dec. 16): Au-
coli outbreak linked to the restaurant chain. Since meted to single digits—leaving the economy with to say who was prouder. thors who write about the bad old
ALICE MARCUS SOLOVY days like to use an ancient statistic
July the burrito seller has been connected to five enough excess capital to finance people like Mr. Highland Park, Ill.
and suppose that the modern reader
outbreaks spanning several states. At least 50 Ells who want to create a company with a market- will find it appalling. Ms. Olmsted
customers have munched on something laced ing model deriding efficient agriculture. The ro- points to a daily wage of 60 cents in
with E. coli, and more than 120 in Boston came mantic longing for colonial-era farming has grown Tidying Up the Loose Ends 1933 when gold was $35 an ounce. Ad-
down with the gastrointestinal norovirus. precisely as the share of people who actually plow justing for today’s price of gold at
The company has closed and scrubbed scores fields has dwindled to 2% of society. After Stalin’s Bloody Reign $1,051 per ounce, that 60-cent wage
of restaurants but says it still has no idea what’s Also ironic is Chipotle’s campaign against Joshua Rubenstein’s review of becomes $18. Hardly munificent, but it
poisoning people, and here’s a possible reason: genetically modified organisms, known as Sheila Fitzpatrick’s “On Stalin’s Team” provided food for starving families.
About 10% of Chipotle’s produce—the most com- GMOs. Earlier this year the company celebrated (Bookshelf, Dec. 21) does an excellent My father was a farmhand in Ar-
mon disease culprit—is grown locally. Chipotle “a farewell to GMOs,” not that anyone has ever job recapping the tense lives of Sta- kansas in 1927 making $10 a month
lin’s senior management team and its plus room and board. Compared with
calls this local-sourcing part of its commitment fallen violently ill from eating a GMO. The com-
surprising cohesion after Stalin died the price of gold then, he made the
to “the very best ingredients,” but working with pany thus plays into public fears that crops with (perhaps nudged into the next world equivalent of about $500 a month. Af-
so many suppliers makes it difficult to catch the tweaked DNA are Frankenfood, but E. coli is all with some help from secret police ter three months he made enough to
offending tomato. natural. Genetic modification makes agriculture chief Lavrenti Beria). His successors buy a pair of boots, some clothes and
Founder Steve Ells vowed on a global grovel- more sustainable: Shoring up a crop’s defenses showed a keen sense of breaking with a bus ticket to Flint, Mich., where he
ing tour that Chipotle will ramp up safety mea- against insects or drought helps farmers cut the past, and no move showed a bet- went to work in the Chevrolet plant
sures at the company’s nearly 2,000 locations. back on pesticides and tillage. ter grasp of Soviet-style corporate for $7 a day.
The company will likely rely less on local suppli- Chipotle’s anti-GMO and locavore advertising governance reform than how they JERRY OLIVER
ers, many of whom can’t comply with sophisti- has been part of a commercial strategy to differ- treated the bloody-handed sexual Vancouver, Wash.
cated testing. The company will also chop, entiate from competitors and make a buck. predator Beria. He was arrested at a
prepare and hermetically seal ingredients such Perhaps no longer: On Tuesday the stock tum- Presidium meeting in June 1953, given Letters intended for publication should
the kind of secret trial he richly de- be addressed to: The Editor, 1211 Avenue
as cilantro and lettuce in a central kitchen before bled below $500 for the first time since May
served and executed in December of the Americas, New York, NY 10036,
shipping it to local restaurants. 2014, with the price down about 25% for the 1953. Without this tidying up of loose or emailed to wsj.ltrs@wsj.com. Please
In other words, Mr. Ells promises to bring his year. Sales are expected to drop precipitously ends, who knows where the U.S.S.R. include your city and state. All letters
restaurants into the 20th century. One reason this quarter. The market is a brutal teacher when might have gone after Stalin’s death? are subject to editing, and unpublished
large chains dice foodstuffs in a central kitchen customers and investors realize a company isn’t VAN WALLACH letters can be neither acknowledged nor
returned.
is to avoid contamination. And while Chipotle practicing what it preaches. Katonah, N.Y.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Wednesday, December 23, 2015 | A13

OPINION

Hillary Has Her Running Mate: Obama

By Juan Williams ple and minorities: “President Obama can ticket of Sen. John McCain and go after ISIS, not to contain them but term of President Obama,” Mrs. Clin-

T
he 2016 presidential race
will be defined by the rela-
tionship between two titans
of American politics: Barack
Obama and Hillary Clinton.
For the first time in more than two
decades—since President Reagan cam-
paigned with then-Vice President
George H.W. Bush—an incumbent two-
term president will be an active player
in the campaign and possibly even an
active presence at events.
Right now, President Obama is
free to be the designated partisan at-
tack dog for Mrs. Clinton, allowing
her to remain above the nastiness
likely to arise in a race with a sharply
divided electorate. Bill Clinton has
played that role for her in past races.
This time Mr. Obama’s presence
allows Mr. Clinton, with his high poll
numbers, to lead a chorus of nostal-
gia-stirring reminders of good feel-
ings about the last time a Clinton was
in the White House.
The Obama team is already backing
her. John Podesta, Mr. Obama’s former
adviser, runs her campaign. President
Obama’s 2008 campaign manager,
David Plouffe, once a Hillary Clinton
critic, is now supporting her, writing
Oct. 24 on Medium.com that, “She’s
the right person to protect President
Obama’s legacy.”
The Clinton team needs Mr. Obama
to turn out the vote among young peo-
Here’s What Genuine Tax Reform Looks Like
By John H. Cochrane
has both the unique ability and unique
credibility to frame the stakes in the
race that will be motivating to Demo-
crats,” Geoffrey Garin, a pollster advis-
ing Mrs. Clinton’s super PAC, told
Bloomberg in October.
Watching their current embrace it is
easy to forget that in the 2008 race for
the Democratic nomination, the two
were rivals. Mr. Obama took swipes at
Mrs. Clinton, for instance by calling
her “likable enough” in a debate, and
chiding her for being on the Wal-Mart
board of directors. Mrs. Clinton
famously mocked him as naïve for
promising transformative change, char-
acterizing the idea as “the skies will
open, the light will come down . . . and
the world will be perfect!”
Meanwhile, Republicans are
already stirring their base voters by
attacking Mrs. Clinton’s candidacy as
essentially seeking an Obama third
term. “As the chief architect of Presi-
dent Obama’s foreign policy,” the
Republican National Committee’s
Allison Moore said in a Dec. 15 state-
ment, “Hillary Clinton has seen her
tenure as Secretary of State go from
being a chief qualification for the
presidency to a huge political
liability, particularly when it comes
to the issue of counterterrorism.”
Candidate Clinton’s strategic rela-
tionship with the incumbent president
of her own party stands in contrast to
recent elections. In 2008 the Republi-
Second, the government should tax
Gov. Sarah Palin chose to distance
itself from two-term incumbent Re-
publican President George W. Bush.
In 2000 the Democratic presiden-
tial nominee, Vice President Al Gore,
and Democrats running down-ballot
nationwide sought to distance them-
selves from incumbent two-term Presi-
dent Bill Clinton. Despite his impeach-
ment over the Monica Lewinsky sex
The president is free to
be Clinton’s designated
partisan attack dog.
scandal, Mr. Clinton remained person-
ally popular, with a 65% approval
rating, according to the last Gallup poll
of his administration. Yet Mr. Gore
regarded him as radioactive for
moderate and conservative voters,
particularly in the South and Midwest.
Fifteen years later, Mrs. Clinton is
trying to strike a delicate balance.
She needs President Obama’s sup-
porters at the polls on election day.
But she is taking great care to assert
her independence from him, particu-
larly on foreign affairs, where Presi-
dent Obama has weak poll numbers.
Thus her implied distance from
the president when she said at Satur-
day night’s Democratic debate: “I
have a plan that I’ve put forward to
for specific activities, groups or busi-
to defeat them.” While echoing the
president’s refusal to send thousands
of troops into the Middle East, she is
also taking more-hawkish positions
by advocating a no-fly zone over
Syria and the deployment of more
U.S. special-operations forces.
The strategy appears to be work-
ing. A November ABC/Washington
Post poll found that Mrs. Clinton is
more trusted than any Republican to
handle terrorism. That poll indicates
that voters are willing to judge Presi-
dent Obama’s first secretary of state
as capable of developing her own
policies on dealing with terror.
In reality, the differences between
the current president and the aspir-
ing one are not large. Generally, Mrs.
Clinton stands with Mr. Obama on
the concept of “smart power” and the
idea that the U.S. should act chiefly
in coalition with other nations. She,
like him, also backs accepting refu-
gees from Syria, overall immigration
reform and gun control.
Yet Mrs. Clinton keeps asserting
her independence. “I’m not running
for my husband’s third term. I’m not
running for President Obama’s third
term,” she told late-night talk-show
host Stephen Colbert on Oct. 27. “I’m
running for my first term.”
Even so, when a Democratic de-
bate moderator asked her in October
to “name the one way that your
administration would not be a third
ment and less progressivity are wiser.
ton avoided policy detail: “Well, I
think that’s pretty obvious,” she
responded. “I think being the first
woman president would be quite a
change from the presidents we’ve
had up until this point, including
President Obama.”
That evasive answer demonstrates
the conflicting desire of the Clinton
campaign to keep some distance from
the president even as she signals to
his supporters that she remains close
to him.
For both politicians, the relation-
ship is transactional. Mr. Obama gets
a successor who will defend his
already much-debated legacy and
fight to protect his signature accom-
plishments on health care, Wall
Street and student-loan reform.
In exchange, Mrs. Clinton gets the
best advocate to fire up the Demo-
cratic base and pull it to the polls in
November in the numbers she needs
to become the first female president
of the United States.
The downside to this strategy is
that today’s polarizing president
could turn out more Republicans than
Democrats next year.
Mr. Williams, a political analyst for
Fox News and a columnist for the Hill,
is the author of “Muzzled: The Assault
on Honest Debate” (Crown, 2011).
Notable & Quotable
Quillette.com editor Claire Leh-
mann, writing Dec. 4 about social
psychologist Lee Jussim’s lecture at
the 2015 Sydney Symposium on lib-

L
eft and right agree that the U.S.
tax code is a mess. The men and
women running for president in
2016 are offering reform plans, and
proposals to fix the code regularly
surface in Congress. But these plans
are, and should be, political docu-
ments, designed to attract votes. To
prevent today’s ugly bargains from
becoming tomorrow’s conventional
wisdom, we should more frequently
discuss the ideal tax structure.
The first goal of taxation is to raise
needed government revenue with
minimum economic damage. That
means lower marginal rates—the ad-
ditional tax people pay for each extra
dollar earned—and a broader base of
income subject to tax. It also means a
massively simpler tax code.
The goal is to be simple and
fair, with minimal damage.
Step one would eliminate
the corporate tax.
In my view, simplification is more
important than rates. A simple code
would allow people and businesses
to spend more time and resources on
productive activities and less on at-
torneys and accountants, or on lob-
byists seeking special deals and sub-
sidies. And a simple code is much
more clearly fair. Americans now
suspect that people with clever law-
yers are avoiding much taxation,
which is corrosive to compliance and
driving populist outrage across the
political spectrum.
What would a minimally damaging,
simple, fair tax code look like? First,
the corporate tax should be elimi-
nated. Every dollar of taxes that a
corporation seems to pay comes from
higher prices to its customers, lower
wages to its workers, or lower divi-
dends to its shareholders. Of these
groups, wealthy individual sharehold-
ers are the least likely to suffer. If
taxes eat into profits, investors pay
lower prices for less valuable shares,
and so earn the same return as be-
fore. To the extent that taxes do re-
duce returns, they also financially
hurt nonprofits and your and my pen-
sion funds.
With no corporate tax, arguments
disappear over investment expensing
versus depreciation, repatriation of
profits, too much tax-deductible debt,
R&D deductions, and the vast array of
energy deductions and credits.
consumption, not wages, income or nesses. They hold reform hostage. But we can agree on an efficient, sim- eral bias in his field:
wealth. When the government taxes Wise politicians often bundle dis- ple and fair tax, and debate revenues
savings, investment income, wealth or similar goals to attract a majority. and progressivity separately. Jussim explained that within the
inheritance, it reduces the incentive But when bundling leads to paraly- We should also agree to separate field, those on the left outnumbered
to save, invest and build companies sis, progress comes by separating the tax code from the subsidy code. those on the right by a ratio of about
rather than enjoy consumption imme- the issues. Thus, we should agree to We agree to debate subsidies for 10:1. So it meant that even if left-
diately. Taxes on capital gains dis- first reform the structure of the tax mortgage-interest payments, electric leaning and right-leaning scientists
courage people from moving or real- code, leaving the rates blank. We cars and the like—transparent and were equal in their bias, there would
locating capital toward their most will then separately debate rates, on-budget—but separately from tax be at least ten times more research
productive uses. and the consequent overall revenue reform. biased towards validating left-wing
Recognizing the distortion, the and progressivity. Negotiating such an agreement narratives than conservative narra-
federal government provides a com- Consumption-based taxes can be will be hard. But the ability to tives. Adding in the apparent double
plex web of shelters, including IRAs, progressive. A simplified income tax, achieve grand bargains is the most standards in the peer review process
Roth IRAs, 527(b), 401(k), health-sav- excluding investment income and important characteristic of great po- (where studies validating left-wing
ings accounts, life-insurance exemp- allowing a full deduction for savings, litical leaders. narratives seemed to be easier to
tions, and the panoply of trusts that could tax high-income earners’ con- publish) then the bias within the field
wealthy individuals use to shelter sumption at a higher rate. Low-in- Mr. Cochrane is a senior fellow could vastly exceed the ratio of 10:1.
their wealth and escape the estate come people can receive transfers at Stanford University’s Hoover In- In other words, research was becom-
tax. If investment isn’t taxed, these and credits. I think smaller govern- stitution. ing an exercise in groupthink.
costly complexities can disappear.
All the various deductions, credits
and exclusions should be eliminated—
even the holy trinity of tax breaks for
mortgage interest, charitable dona-
tions and employer-provided health
insurance. The extra revenue, over a
trillion dollars annually, could finance
a large reduction in marginal rates.
This step would also simplify the code
and make it fairer.
Imagine that Congress proposed to
send an annual check to each home-
owner. People with high incomes, who
buy expensive houses, borrow lots of
money or refinance often, would get
bigger checks than people with low
incomes, who buy smaller houses,
save up more for down payments or
pay down their mortgages. There
would be rioting in the streets. Yet
that is exactly what the mortgage-in-
terest deduction accomplishes.
Similarly, suppose Congress pro-
posed to match private charitable
donations. But rich people would get
a 40% match, middle class people
only 10%, and poor people nothing.
This is exactly what the charitable
deduction accomplishes.
Zeroing out deductions, credits,
and corporate and investment taxes
matters—for permanence, for pre-
dictability and for simplicity. If the
corporate rate is drastically reduced,
or if deductions are capped, it seems
that the economic distortions go
away. But the thousands of pages of
tax code are still in place, the army
of lawyers and accountants and lob-
byists is still in place, and the next
administration will itch to raise the
caps, and the rate.
Why is tax reform paralyzed? Be-
cause political debate mixes the goal
of efficiently raising revenue with so
many other objectives. Some want
more progressivity or more revenue.
Others defend subsidies and transfers

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A14 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.

WORLD NEWS

Tighter Borders Maroon Migrants Poland

Moves to
Thousands continue
to flow to Greece, are
halted by new controls
Remake
as winter arrives Top Court
BY NEKTARIA STAMOULI
AND STELIOS BOURAS BY MARTIN M. SOBCZYK

ATHENS—Greece is steadily WARSAW—Poland’s govern-

shifting from being the main ing party rushed to reorganize
gateway for migrants into Eu- the country’s top legislative
rope to becoming the conti- court on Tuesday, despite op-
nent’s bottleneck, as new ar- position pleas and criticism
rivals run up against tightened from abroad.
borders to the north. The Law and Justice party,
Already struggling with its which controls both houses of
long debt crisis and economic Parliament and relies on the
depression, Greece risks find- president who won office as
ALKIS KONSTANTINIDIS/REUTERS

ing itself unable to cope with the party’s candidate, pushed

the tens of thousands of mi- through legislation that re-
grants at risk of being ma- quires 13 of the court’s 15
rooned here this winter. Some judges to rule on each case,
are staying in temporary gov- rather than the current five.
ernment shelters, others are The legislation also intro-
sleeping rough. duces a new majority of two-
“There is indeed a danger thirds needed for rulings and
that the country will turn into Migrants in Greece, unable to enter Macedonia, lined up for food outside a stadium in the Athens suburb of Faliro on Dec. 14. forces the court, whose rulings
a warehouse if these flows are final, to rule on cases in
continue,” Prime Minister European Union authorities “It’s hard to build a fence on tries must accept their share the order of arrival. The Sen-
Alexis Tsipras told Parliament are trying to cajole countries Tide Turns the sea,” says a senior German of responsibility,” Public Order ate is expected to pass the leg-
on Dec. 11. He pledged to pre- along the migration route, Number of migrants arriving official. Islands such as Lesbos Minister Nikos Toskas said islation on Wednesday.
vent that from happening, al- from Turkey to the Balkans, to into Greece, monthly data are so close to Turkey that while visiting a shelter. Poland’s opposition says
though Greece has few ways to significantly slow the largest small boats can evade the On some of the tourism-de- those changes seek to block
2014 2015
stop people from landing on movement of people Europe coast guard. pendent islands, opposition is the court’s ability to rule
its shores. has witnessed since the after- 200,000 Greece is under growing EU mounting against the con- against the government’s
More than one million mi- math of World War II. pressure to act as Europe’s fil- struction of large, potentially agenda of sweeping change by
grants have crossed the Medi- People from war-torn Syria, ter for migrants: Processing long-lived camps for migrants. slowing down the court’s work
terranean into Europe this Iraq and Afghanistan are still 150,000 centers on Greek islands, known German officials have become and in some cases delaying
year, about half of them from allowed through, but people as “hot spots,” are supposed to impatient with what they see rulings on matters until they
Syria, the International Organ- from countries such as Paki- sort out refugees who have a as foot-dragging by Athens. become irrelevant.
ization for Migration said stan, Morocco or Iran, who are 100,000 reasonable claim to asylum in This month EU officials, en- Law and Justice’s actions
Tuesday. Just over 800,000 considered less likely to win Europe from economic migrants couraged by Germany, threat- since it won power in October
entered the European Union asylum claims, are being who don’t. The latter are to be ened to suspend Greece from have led to public protests and
via Greece, risking a dangerous turned back. prevented from continuing their Europe’s easy-travel Schengen counterprotests.
sea crossing that has led to al- Thousands of migrants have 50,000 trek into Europe. But no de- zone unless it steps up efforts to The planned changes also
most-daily drownings. been denied entry to Macedo- tailed plan exists for what to do build hot spots and accepts EU provoked criticism from out-
Greece has so far largely nia in recent weeks. Many have with them. Often, their coun- help in patrolling its borders. side Poland.
been a conveyor belt in the mi- retreated back to Athens. So 0 tries of origin won’t cooperate Greek officials have accused “I call on my parliamentary
gration crisis: Syrian refugees far, neither Greece nor the EU J F M A M J J A S O N D* in taking people back. the EU of being slow to deliver colleagues in Poland not to en-
and other migrants set off has laid out a plan for dealing *2015 figure through Dec. 21
So far, relatively small num- on promised financial aid, act—precipitously—legisla-
from Turkey and landed on with them. Meanwhile thou- Source: UNHCR bers of migrants have found equipment and manpower. tion relating to the Constitu-
Greece’s Aegean islands. They sands more migrants are land- THE WALL STREET JOURNAL. themselves stuck in Greece. Athens also says EU countries tional Tribunal which may
quickly made their way to the ing every week on Greek is- But even providing housing for have been slow to accept even seriously undermine the rule
mainland, then headed north lands such as Lesbos. and we have a shared respon- a few thousand is stretching Syrian and Iraqi refugees from of law,” said Anne Brasseur,
into the Balkans en route to The mantra in Brussels, the sibility to protect it,” European the resources and capability of Greece under the EU’s new re- president of the Parliamentary
Germany and other wealthier EU’s headquarters, is that Commission President Jean- Greece’s cash-strapped govern- location program. Assembly of the Council of Eu-
countries in Northern Europe. Greece must police its sea bor- Claude Juncker told the Euro- ment, and officials fear the Out of a total of 66,000 ref- rope, the continent’s human-
That is changing as a result der better, with help from pean Parliament in Strasbourg, problem will only grow. ugees in Greece whom the EU rights watchdog.
of a growing political backlash other EU nations if needed. France, on Dec. 16. “We are doing whatever we wants to offer new homes Law and Justice has ex-
against uncontrolled migration “We Europeans no longer have In practice, Greece’s sea can, but the European Union around Europe, fewer than 100 pressed outrage over previous
around Europe. Germany and many borders. We have one border is difficult to police. and the other European coun- have been moved. denunciations from abroad.

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Nets Owner
Takes It All
SPORTS | A20
WSJ.com/NY
NOAH K. MURRAY/ASSOCIATED PRESS
Sen. Cory Booker, right, with Rep. Donald Payne Jr., left, and
Newark Mayor Ras Baraka at Newark Liberty Airport in November.
New Book Brings
Booker Back
Into Public Eye
BY HEATHER HADDON
WASHINGTON—New Jersey
Sen. Cory Booker still knows
more about Newark’s sewer
system and street parking
meters than arcane U.S. Sen-
ate rules, but he is learning.
“I think I’ve read more
books in two years as a sena-
tor than seven years as a
mayor,” Mr. Booker said dur-
ing an interview in his Senate
chambers.
The former Democratic
mayor of Newark, he won a
special election in 2013 to suc-
ceed the late Sen. Frank Laut-
enberg in New Jersey. Political
observers waited to see
whether the social-media
junkie could trade his Oprah
appearances and celebrity
hobnobbing for the deference
and statesmanship of the Sen-
ate.
The U.S. senator’s
first book, ‘United,‘
is set to be released
in February.
To their surprise, Mr.
Booker largely avoided the
Beltway media scene over the
past two years, focusing on
congressional work and spend-
ing his down time at the Sen-
ate gym, a weekly congressio-
nal Bible study meeting and
dinners with lawmakers, in-
cluding Republican Texas Sen.
Ted Cruz.
Now, Mr. Booker, 46 years
old, is easing back into the
spotlight. The Rhodes Scholar
is finishing “United,” a book
on his life and lessons learned,
set to be released in February.
He will go on a book tour after
its release and make national
media appearances.
The book has renewed
speculation about Mr. Booker’s
ambitions. He was a promi-
nent supporter of President
Barack Obama and is now
campaigning for Hillary Clin-
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CITY NEWS A16, A17 | FOOD & DRINK A18 | ARTS & ENTERTAINMENT A19
Wine Wishes
What to get your vintner LETTIE TEAGUE | A18
* * * *
ton’s presidential run. Mr.
Booker stumped in New
Hampshire and Memphis,
Tenn., this month.
Mr. Booker sponsored 21
bills and co-sponsored 160
others last year, fewer than
many other freshman sena-
tors, according to an analysis
by the GovTrack.us congres-
sional tracking service. But he
has covered more ground this
year, sponsoring 62 bills and
co-sponsoring 216 others. He
helped corral federal and state
support for a $20 billion
trans-Hudson train tunnel and
led a month of negotiations on
a bill to reduce mandatory jail
sentences.
“His likability transcends a
lot of platform differences,”
said Republican Utah Sen.
Mike Lee, who publicly helped
lead the push for the bill,
which is expected to come to a
vote in the coming months.
Some Democrats have sug-
gested Mr. Booker as a vice-
presidential pick, and he could
help stir the voter passion
that accompanied Mr. Obama’s
successful campaigns, said
Ross Baker, a professor of pol-
itics at Rutgers University. “He
would be an ideal ticket bal-
ancer,” said Mr. Baker, who
consults for U.S. senators.
Clinton campaign spokes-
man Jesse Ferguson declined
to comment on the vice-presi-
dential speculation, but
praised Mr. Booker as “an in-
fluential voice in the Senate
and a powerful voice for Dem-
ocrats across the country.”
Mr. Booker laughed off the
vice-presidential speculation
and said he hopes to be
elected for a second, six-year
Senate term in 2020.
“The longer I stay here, the
more influence I will have,”
said Mr. Booker, whose office
walls are lined with portraits
of Mahatma Gandhi and Fred-
erick Douglass, along with a
map of his old Newark district.
An Ivy League-educated,
Bergen County native, Mr.
Please see BOOKER page A16
NYPD Detective Was
‘Superman’ to Friends
BY SOPHIA HOLLANDER
AND KATE KING
Squad members at the 50th
Precinct dubbed the towering
detective “Superman” for his
sturdy 6-foot-5-inch frame and
all-American looks.
But Bronx Detective Joseph
Lemm, who grew up in Iowa
and Nebraska, might have also
earned the name due to his
penchant for rushing into dan-
ger in the name of duty or
making surprise appearances
halfway around the world.
The Westchester County fa-
ther of two was a 15-year New
York Police Department vet-
eran who also joined the Air
National Guard, serving three
terms in Iraq and Afghanistan.
When he encountered crimi-
THE WALL STREET JOURNAL.
Governors Seek Gun Curbs
Cuomo, Malloy push
to bar sales to those
on terror watch lists;
New Jersey has a ban
BY JOSEPH DE AVILA
Two years ago, New Jersey
Gov. Chris Christie, a Republi-
can, signed a bill prohibiting
people on federal terrorist
watch lists from buying guns.
Now his Democratic coun-
terparts in Connecticut and
New York are moving toward
the same goal, but they may
take different—and potentially
more controversial—ap-
proaches to get there.
Connecticut Gov. Dannel
A rendering of the $350 million redevelopment and restoration of Pier 57 on the Hudson. Google signed a 15-year lease there on Friday.
Lease Deals Take Shape on Pier 57
BY KEIKO MORRIS
The empty hulking struc-
ture at the river’s edge in the
Meatpacking District and
Chelsea has had an unglamor-
ous past, first as a freight ter-
minal and later as a bus depot.
Now, Pier 57 is going to get a
turn on the red carpet.
Plans for a $350 million re-
development and restoration
of the historic site have made
major strides in the past year,
highlighting the high demand
for office space in Midtown
South and underscoring the
growing preference among
companies for workplaces in
neighborhoods with a 24-7
vibe, real-estate experts said.
On Friday, Google Inc.
signed a 15-year lease with de-
nals in his off hours, he caught
them, according to news re-
ports. Despite being stationed
in Afghanistan, he surprised
his stepdaughter at a
Westchester restaurant to
watch her sing in a contest, as
captured on video by a local
news station.
On Monday, Detective
Lemm, 45 years old, and five
other American soldiers were
killed when a suicide bomber
drove his motorbike into their
convoy as it patrolled a village
near Bagram Air Field.
It was the deadliest attack
on international forces in Af-
ghanistan this year, and also
took the life of a Long Island
man, family members con-
firmed Tuesday. Staff Sgt.
Please see LEMM page A19
Malloy said this month that he
intended to issue an executive
order directing the state po-
lice to deny guns to anyone on
the watch lists. Some legal
scholars say they don’t think
he has the authority to bypass
the Legislature and make that
change himself.
New York Gov. Andrew
Cuomo said if Congress didn’t
pass a law barring the sale of
guns to those on the watch
lists, the federal government
should allow states to use
those lists to screen firearms
purchasers.
Mr. Cuomo hasn’t said if he
preferred to go through the
Legislature or to issue an ex-
ecutive order. A spokesman
for the governor said “we will
velopment team Youngwoo &
Associates LLC and RXR Re-
alty to take 250,000 square
feet at the pier, which is in the
4-mile-long Hudson River
Park. And a deal for a 155,000-
square-foot international food
market from chef and televi-
sion personality Anthony
Bourdain is expected to close
soon, according to an execu-
tive with the market.
“If you think about Mid-
town South, where are you
going to get 250,000 square
feet of space, unique, big
floor plates, incredible
views...a marketplace, parks
where you can sit outside?”
said Scott Rechler, chief exec-
utive of RXR Realty. “It
doesn’t exist, so we are creat-
ing something where the de-
NYPD Detective Joseph Lemm in his military garb. He and five other American soldiers—including Louis
Bonacasa of Long Island—were killed Monday in Afghanistan when a suicide bomber hit their convoy.
Wednesday, December 23, 2015 | A15
implement through the most
appropriate legal mechanism.”
“I think [the Cuomo admin-
istration is] probably still try-
ing to figure out what the po-
litical and legal implications of
this move are and how to best
make it,” said Timothy Lytton,
a law professor at the Georgia
State University College of
Law who was written about
firearms litigation. “And the
Malloy administration may be
slightly less concerned about
that.”
The U.S. Senate on Dec. 3
defeated a bill supported only
by Democrats that sought to
give the attorney general the
authority to block the sale of
firearms to people on federal
watch lists. Republicans said it
mand has not been satiated.”
Opened in 1954, the 900-
foot-long building served as a
shipping terminal for the
Grace Line. In 1969, the New
York City Transit Authority
began using it as a depot to
store buses. The depot closed
in 2003.
Both Google and the part-
ners behind the Bourdain Mar-
ket said they were motivated
by the building’s history, size
and location.
“It’s one of the last grand
spaces in Manhattan,” said
Stephen Werther, partner and
chief executive of Bourdain
Market. “Where do you find
something of this scale and in
an area that historically
housed large markets?”
The 97-year lease deal with
was unconstitutional and
could deprive some innocent
Americans of their right to
own guns.
It appears that New Jer-
sey’s law hasn’t been subject
to a legal challenge. A spokes-
man for Mr. Christie said the
administration is unaware of
any lawsuit. The National
Shooting Sports Foundation, a
trade association that repre-
sents gun makers, said it con-
siders the law to be unconsti-
tutional. A spokesman for the
New Jersey State Police de-
clined to say how many people
have been denied a gun be-
cause of the law.
Neither Mr. Cuomo nor Mr.
Malloy has been shy about
Please see GUN page A16
HANDEL ARCHITECTS LLP
developers is pending a vote
by the board of the Hudson
River Park Trust, charged with
managing and building the riv-
erfront park, including Pier 57.
The deal could bring about
$220 million over the first 25
years of the lease, if the proj-
ect achieves certain income
projections, said Madelyn
Wils, chief executive of the
trust. At the start of construc-
tion, the developers, who are
investing about $350 million
to redevelop the pier, would
make a $6.5 million down pay-
ment to the trust.
As part of the revamp, the
joint development team is
adding two mezzanine floors
and public esplanades around
the pier. The pier’s rooftop
Please see PIER page A16
NYPD MIDTOWN SOUTH/REUTERS
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, December 23, 2015
Pier 57 on the Hudson River in Manhattan. The building, opened in 1954, served as a shipping terminal and later as a depot to store buses.
Plans to Transform Pier 57 Gain Steam
Continued from page A15
will be transformed into a
public park, featuring a venue
for the Tribeca Film Festival
and a new restaurant pavilion.
In 2008, the original con-
cept was to have many inde-
pendent retailers and entre-
BOUTIQUE preneurs in the shop space
New York 5th Ave with a rooftop park. But later
the city-state Hudson River
NEW Park Trust and government of-
ficials successfully pushed for
a change in legislation to al-
low for office development to
make the project more finan-
cially viable. Earlier this
month, Gov. Andrew Cuomo
announced the state’s approval
of the deal with developers.
“It built a built-in customer
base for the retail below,” said
Margarette Lee, a Youngwoo
principal.
Midtown South had the
Full-frame sensor, fixed lowest office vacancy rate in
focal length, unlimited creativity the country at 5.8% in the
third quarter, according to
Leica Q (Typ 116) real estate services firm Cush-
Digital Camera with Summilux
28mm f/1.7 ASPH Lens
24.2 MP Full-Frame CMOS Sensor
Leica Maestro II Image Processor
GUN
3.68 MP LCOS Electronic Viewfinder Continued from page A15
3.0" 1,040k-Dot Touchscreen LCD Monitor wielding his authority through
Built-In Wi-Fi Connectivity executive orders. Mr. Cuomo
has used it to set a $15 hourly
Full HD 1080p Video $ 4,250 minimum wage for state work-
ers, among other things. Mr.
LEICA BINOCULARS ON SALE Malloy has largely used the or-
ders for administrative house-
keeping, such as moving the
Willoughby’s Is The Place To Buy Your Leica state to adopt stricter ac-
counting practices for the
state budget.
Under Mr. Malloy’s execu-
tive order, the Connecticut
www.willoughbys.com State Police would cross-refer-
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212.564.1600 or she wouldn’t be able to buy
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handguns, shotguns, rifles or
ammunition.
The police would also be
able to revoke existing per-
mits from gun owners on
watch lists. People whose per-
mits were denied or revoked
would be able to appeal the
decision with the Connecticut
Board of Firearms Permit Ex-
aminers.
Mr. Malloy hasn’t asked the
Legislature to pass a law bar-
ring those on federal watch
lists from purchasing fire-
arms, but hasn’t ruled it out.
“We believe we have the
power under executive order,
because what we are denying
is a permit, and it’s a permit
process, and there is an ap-
BOOKER
Continued from page A15
Booker rose to national promi-
nence when he took on long-
time Newark Mayor Sharpe
James in 2002.
He lost that election but
won in 2006.
Mr. Booker is credited with
helping to draw attention to
New Jersey’s largest city and
raising about $400 million in
philanthropy for Newark. But
falling state aid forced Mr.
Booker to lay off police, and
crime spiked.
Although praised for help-
ing spur development in New-
ark, Mr. Booker was criticized
for not being hands-on enough
with its problems. When he
ran for Senate in 2013, his Re-
publican challenger, Steve
Lonegan, attacked him for a
string of 10 murders across 10
CITY NEWS
man & Wakefield. RXR knows
firsthand the strength of the
demand. Occupancy at RXR’s
Starrett-Lehigh Building, a
former freight terminal turned
office building at 601 W. 26th
St., has been more than 96%.
Rents there have risen from
$30 a square foot in 2011 to
‘It’s dynamic and the
nexus of so many
different unique
aspects of New York.’
$65 today, Mr. Rechler said.
Midtown South has been a
popular destination for the
technology, advertising and
media sectors. But now finan-
cial companies are finding
they want to set up shop there
as well, aiming to recruit mil-
lennials, said Ken McCarthy,
Cushman’s principal econo-
mist and research lead.
New York Gov. Andrew Cuomo and Connecticut Gov. Dannel Malloy are seeking gun restrictions.
peal in the permit process if
you are denied,” Mr. Malloy
said.
Some legal experts say Mr.
Malloy would overstep his au-
thority if he issues the execu-
tive order.
“It seems to me that this is
exactly the kind of thing
which would be appropriate
for legislation,” said Richard
Kay, associate dean for re-
search and faculty develop-
ment at the University of Con-
necticut School of Law. “That
being the case, I don’t think
the governor, unless I’m miss-
ing something, should be able
to essentially legislate this on
his own.”
George Mocsary, an associ-
ate law professor at the
Southern Illinois University
School of Law who has written
days in Newark.
Republican Kentucky Sen.
Rand Paul, a national surro-
gate for Mr. Lonegan, accused
Mr. Booker of ignoring the
problems of “real people.”
Mr. Booker won the race
55%-44%. Upon being sworn
in, one of Mr. Booker’s first
senatorial handshakes was
with Mr. Paul.
Since then, the freshman
senator said he has kept his
head down, learning more
about infrastructure and crim-
inal justice, and serving on the
homeland security and com-
merce committees.
“The hardest thing is to
gain people’s trust and confi-
dence,” said former New Jer-
sey Sen. Bill Bradley, one of
Mr. Booker’s closest Demo-
cratic mentors. “He has mas-
tered the subjects he’s inter-
ested in, and he’s built great
relationships.”
Mr. Booker, a vegan and
* ***
“Midtown South is about
the amenities,” said Mr.
McCarthy. “The restaurants,
the nightlife—that’s why com-
panies are going there to at-
tract that demographic.”
With more than 5,000 em-
ployees locally, Google has
more than 900,000 square feet
of office space in the Chelsea
area, said William Floyd,
Google New York’s head of ex-
ternal affairs. In the past few
years the company has added
an average of 600 employees
annually to its New York cam-
pus. The deal also allows
Google to help boost a project
benefiting the park and
broader community, he said.
“We really do love the
neighborhood,” Mr. Floyd said.
“It’s dynamic and the nexus of
so many different unique as-
pects of New York.”
The overhaul of Pier 57 also
plays a larger role in rejuve-
nating Manhattan’s water-
front, government officials
MIKE GROLL/ASSOCIATED PRESS
about gun regulations, agreed
and said courts would likely
strike down such an executive
order. “It would be tough to
survive a challenge,” he said.
William Dunlap, professor
of law at the Quinnipiac Uni-
versity School of Law, how-
ever, said the governor may
have implied authority in the
matter under Connecticut’s
gun ownership statute. That
statute says that firearms per-
mits can only be given to a
“suitable person,” and it ap-
pears that the executive
branch can define what that
phrase means, he said.
“There is this somewhat
vague authority to determine
who is a suitable person,” Mr.
Dunlap said. “That may be
enough” for the governor to
issue that executive order.
self-described “Star Trek” and
“Star Wars” nerd with a Yoda
Christmas stocking in his of-
fice, acknowledged that some
of his fellow senators were un-
easy with his celebrity when
he arrived in Washington. He
has 1.6 million Twitter follow-
ers, many of whom com-
mented when he rescued dogs
or donated Hot Pockets to
Newark residents in response
to tweets.
Now splitting his time be-
tween Washington and New-
ark, Mr. Booker still engages
with constituents on Twitter,
often late into the night.
Mr. Booker called Twitter
an efficient way to respond to
constituents. Mr. Lee com-
mends Mr. Booker’s digital
presence: When he drew Mr.
Booker for a Senate secret
Santa, Mr. Lee penned a poem
that made light of his social-
media prowess.
Still, the Senate has allowed
THE WALL STREET JOURNAL.
STEVE REMICH FOR THE WALL STREET JOURNAL
said. “This is another example
of how we are just completing
what should be the rebirth of
New York City as an extraordi-
nary coastal city,” said Deputy
Mayor Alicia Glen, who is also
vice chairwoman of the trust’s
board.
While much has been made
of how the High Line Park has
boosted residential and com-
mercial development, the Hud-
son River Park has done much
the same. From 2000 to 2014,
there has been about $8 bil-
lion worth of construction in
neighborhoods adjacent to the
park, which runs from West
59th Street to Chambers
Street, according to Madelyn
Wils, chief executive of the
park’s trust.
“These people are market-
ing all of that construction
based on Hudson River Park,”
Ms. Wils said. “If you want
families to move in, you have
to give them schools and
parks.”
STEVEN SENNE/ASSOCIATED PRESS
In New York, some state
lawmakers are pushing to take
legislative action. Democratic
state Sen. Jeff Klein intro-
duced a bill Dec. 11 that would
ban the sale of guns to indi-
viduals on federal watch lists.
It is unclear what support
such an effort has in the Leg-
islature. A spokesman for As-
sembly Speaker Carl Heastie,
a Democrat, said, “It’s com-
mon sense that those on the
terror watch list should be
prevented from buying guns,”
but declined to say whether
Mr. Heastie supported Mr.
Klein’s bill.
A spokesman for Senate
Majority Leader John Flana-
gan, a Republican, didn’t re-
spond to requests for com-
ment on Mr. Cuomo’s proposal
or Mr. Klein’s legislation.
him a more humane pace than
his time as mayor, Mr. Booker
said. He already saw the new
“Star Wars: The Force Awak-
ens” while home in Newark,
for example.
“It’s more of a chess game
down here,” said Mr. Booker, a
varsity tight-end while at
Stanford University. “Being a
mayor was smash-mouth foot-
ball every day.”
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THE WALL STREET JOURNAL. * * Wednesday, December 23, 2015 | A17

CITY NEWS
No Snow for Santa’s Sleigh
New York City
Expands Leave
For New Parents
BY MARA GAY face an impossible choice: tak-
ing care of their child or get-
About 20,000 New York ting their paycheck,” Mr. de
City workers will be eligible Blasio said in a news release.
for six weeks of fully paid pa- City officials said they
rental leave in the new year, planned to pay for the ex-
Mayor Bill de Blasio said panded leave with a small part
Tuesday. of a pay increase scheduled
The new policy, which Mr. for July 2017 that is already
de Blasio said he would enact included in the city’s $78.5 bil-
by signing an executive order, lion budget, and by capping
would bring the city in line vacation leave for longtime
employees at 25 days instead
of 27. They said it comes at no
City officials said additional cost to taxpayers.
the new leave policy The expanded leave applies
to all nonunion employees
brings no additional

SPENCER PLATT/GETTY IMAGES

who work for the city, includ-
cost to taxpayers. ing workers at more than a
dozen agencies such as the De-
partment of Education and the
with Pittsburgh and Austin, Department of Health and
Texas, which offer similar pa- Mental Hygiene.
rental-leave policies. It is ex- The new policy would also
pected to take effect in New cover Mr. de Blasio’s youthful
York City on Jan. 1. staff at City Hall, where some- ‘TIS THE SEASON?: A man dressed as Santa Claus needed an umbrella rather than a warm suit as he skated around the Rockefeller
Under New York City’s new thing of a baby boom has been Center rink Tuesday. It won’t be a white Christmas in New York City, where the temperature is expected to hit 64 degrees Friday.
policy, nonunion city workers afoot. More than a dozen chil-
would be able to receive up to dren have been born to City
12 weeks paid maternity, pa- Hall employees over the past

Minors in Prison to Be Separated

ternity, adoptive or foster-care two years since the mayor
leave, when the new policy is took office.
combined with existing leave. Mr. de Blasio and his advis-
“Too many new parents ers took note, and have dis-
cussed expanding the paid-
leave policy for months,
according to aides.
Unions wanting to take part
in the expanded leave will
have to negotiate the policy as
part of their contracts, and
several of the city’s largest
unions have asked to do so, a
spokeswoman for Mr. de Bla-
sio said.
United Federation of Teach-
KEVIN HAGEN FOR THE WALL STREET JOURNAL
BY REBECCA DAVIS O’BRIEN
Minors serving time in New
York state prisons will be
housed separately from adult
prisoners under an executive
order signed Tuesday by Gov.
Andrew Cuomo.
The unilateral move to sepa-
rate 16- and 17-year-old inmates
from the general prison popula-
tion comes months after the
productive members of society,”
Mr. Cuomo said in a statement.
Under the terms of the order,
a Hudson, N.Y., prison would be
converted into a housing and
reception center for nearly all
of the state’s 16- and 17-year-old
inmates, who would start mov-
ing into the facility by August
2016. A separate “juvenile sepa-
ration unit” would be built for
short-term disciplinary confine-
ors and nonviolent felonies as
16- and 17-year-olds and hadn’t
been convicted again after 10
years, a move that would affect
about 10,000 people, the gover-
nor’s office said.
Also on Tuesday, Mr. Cuomo
signed legislation banning the
shackling of pregnant inmates
while they are being trans-
ported to medical appointments
or between prisons. Current
despite advocacy from criminal-
justice groups and some state
law enforcement, including
Manhattan District Attorney
Cyrus Vance Jr.
Opponents have said that
such a change could tax the ju-
venile system or hamper prose-
cutors’ efforts to pursue serious
charges against violent young
offenders.
JoAnne Page, president of

ers President Michael Mul-
grew said Tuesday that he was
relieved to “finally have a will-
ing partner on an issue that is
very important to us.” He said
he would sit down with the
administration to negotiate
the expanded leave as part of
the union’s contract.
Building-workers union
32BJ SEIU said it would also
seek the expanded parental
Mayor Bill de Blasio leave as part of its contract.
governor and Legislature
couldn’t agree on his proposed
efforts to remove teenagers
from the adult court system. In
2013, 837 of the 33,064 arrests
of 16- and 17-year-olds resulted
in state prison sentences, ac-
cording to state records.
“By housing 16- and 17-year-
olds in an age-appropriate cor-
rectional facility, we can offer
them a better chance at turning
their lives around and becoming
ment.
Male youth considered “max-
imum security” would remain
housed in a juvenile unit at the
Coxsackie Correctional Facility
near Albany.
It is the governor’s second
major announcement about
New York’s juvenile offenders in
as many days. On Monday, Mr.
Cuomo said he would offer ex-
ecutive pardons to people who
were convicted of misdemean-
state law prohibits the use of
restraints on inmates about to
give birth, but the new law
would extend the rule to in-
clude all pregnant inmates at
state and local correctional fa-
cilities, except in extraordinary
circumstances.
Earlier this year, Mr.
Cuomo’s proposal to treat New
York’s 16- and 17-year-old de-
fendants as juveniles failed to
advance in the state Legislature,
the Fortune Society, a nonprofit
criminal-justice organization,
called the defeat of the raise-
the-age legislation “enormously
unfortunate.” She said the
struggle to fix the laws would
continue and praised Mr.
Cuomo’s efforts.
“What the governor is doing
right now is taking a series of
really important steps…that
don’t require the Legislature,”
Ms. Page said.

One Hurt in Shooting at Long Island Mall Filled With Holiday Shoppers
BY THOMAS MACMILLAN employee, who was in serious division, said he was walking the two security guards trying burger in the mall food court mas shopping with his mother,
AND ZOLAN KANNO-YOUNGS condition, Mr. Mangano said. in a second-floor corridor to subdue the man in the coat. when she heard gunshots. Gina, in Macy’s when the
A Roosevelt Field represen- when he heard a gunshot. “The Mr. Lehr said he spotted a “The second I heard the shooting occurred.
One person was shot during tative said the mall was open mall was packed and crowds pair of handcuffs on the floor. noise, people started running,” Mr. Hollon said he grabbed
an apparent robbery Tuesday and “safe for all shoppers.” just started running toward “I just basically picked up the said Ms. Larkin, who said the his 48-year-old mother, who
in a Long Island mall packed A New York Police Depart- me like a stampede. People cuffs and helped get him se- mall was packed with holiday has a bad knee, and headed for
with holiday shoppers, Nassau ment officer shopping for were yelling, ‘He’s got a gun!’” cured,” he said. “I simply shoppers. a stockroom in the Macy’s,
County police said. Christmas gifts helped capture Mr. Lehr, 49 years old, said helped them close the deal.” Ms. Larkin said she ran where they waited until a se-
The alleged shooter was the suspect, along with a re- he saw a man in a suit strug- The man in the suit identi- across the food court to where curity guard arrived and told
taken into custody after the tired NYPD detective who was gling with a man in a winter fied himself as a retired NYPD her friends were sitting. “I them it was safe.
incident inside a Rolex watch working as security in the store coat. The pair lurched into a detective who had been work- said, ‘Run, there’s a shooter!’ “I was thinking God forbid
store at the busy Roosevelt and two mall security guards, nearby store, still grappling, ing as security in the Rolex That’s not the phrase you anything is going to happen,”
Field mall in Garden City, said New York City police said. and two unarmed security store, Mr. Lehr said. want to say to anybody.” Mr. Hollon said. “I knew I
Nassau County Executive Ed- Inspector Kenneth Lehr, guards followed. Kathleen Larkin, 18 years Jailain Hollon, a 22-year-old would just have to protect my
ward Mangano. commanding officer of the Mr. Lehr entered the store old, from Bellerose, Queens, Baruch College student from mother to get her out of the
A single bullet struck a mall NYPD’s fugitive-enforcement and saw the man in a suit and said she was getting a bacon Uniondale, said he was Christ- store before anything else.”

Greater
New York New England’s Finest
Watch Since 1796.

MANHATTAN
MoMA Building
Named for Donor
The Museum of Modern Art
is naming a building in its Mid-
town campus after hedge-fund
titan Kenneth Griffin, in recogni-
tion of a $40 million gift that
MARK LENNIHAN/ASSOCIATED PRESS

ranks among the largest in the

museum’s history.
The donation, from the Ken-
neth C. Griffin Charitable Fund,
“will support MoMA’s mission to
provide education and exhibi-
tions of modern and contempo-
rary art to a global audience,”
museum officials said Tuesday. 18.21ctw Pear Shape Diamond Drop Earrings
GIA Certified, F color SI1-2
MoMA plans to name the mu- Bicyclist James Dussap, laden with a big backpack, braved the rain Tuesday to deliver packages.
seum’s 1964 addition on West
53rd Street the Kenneth C. Griffin Tuesday to charges that he ille- pected of buying marijuana. dition when it was captured in
Building. The six-story structure, gally arrested a man who was The prosecutor said Mr. Mu- the ship’s hold and couldn’t be
with a black steel and glass fa- filming him, then filed false re- noz claimed the man interfered nursed back to health. It died
cade, was designed by Philip ports to cover up his wrongdoing. with the investigation and Monday.
Johnson. Jonathan Munoz, 32 years lunged at him, but surveillance The cobra was on a ship
Mr. Griffin, the billionaire old, entered his plea in Manhat- video showed that wasn’t true. headed from Singapore to Port
founder and chief executive of tan Supreme Court, where he —Thomas MacMillan Elizabeth, N.J., when the crew
Chicago-based Citadel LLC, is a faces charges of filing a false in- discovered it on Dec. 10.
major art collector and serves on strument, official misconduct, BRONX The ship docked Dec. 14 and
the boards of several nonprofits. and making a false statement. two Bronx Zoo herpetologists
—Jennifer Smith Mr. Munoz’s attorney said he
Venomous Cobra bagged the 18-inch cobra and
plans to file a motion to dismiss Found on Ship Dies brought it back to the zoo.
NEW YORK CITY the case, citing allegedly im- A venomous cobra that Zoo Director Jim Breheny
proper questioning of his client. stowed away on a New Jersey- said the snake hadn’t eaten for 125 Greenwich Avenue, Greenwich, CT
False Arrest Charges A prosecutor said that in bound cargo ship has died. several weeks. He said veterinar- www.shrevecrumpandlow.com
For NYPD Officer March 2014, Mr. Munoz arrested Officials at the Wildlife Con- ians were disappointed they (203) 622-6205
A New York Police Depart- a 21-year-old man who was film- servation Society’s Bronx Zoo couldn’t save it.
ment officer pleaded not guilty ing him searching a woman sus- said the snake was in poor con- —Associated Press
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A18 | Wednesday, December 23, 2015 * * THE WALL STREET JOURNAL.

FOOD & DRINK WEDNESDAY

What to Give a Wine Retailer? The Good Stuff
It’s the busiest time of
The Feed
the year for New York area
wine merchants. They’re giv-
ing advice and gift-wrapping
Holiday Menus Offer
bottles and restocking—and A Twist on Tradition
restocking—their shelves. Dining on Chinese food has
What wines would these become a de facto Christmas
hardworking retailers like to tradition for New York’s Jewish
receive themselves? Which community. A number of restau-
bottles will rateurs are building on the tradi-
please them tion this year with special meals.
and which Mile End Deli, which special-
ones are the izes in Jewish fare with a Cana-
vinous dian accent, offers a Chinese
equivalent of Feast ($65 a person). Items range
a stocking from Asian-style wings to duck
UNCORKING full of coal? three ways to dumplings stuffed
THE CITY For Cos- with smoked meat. The meal will
LETTIE tas Mouzou- be offered on Thursday and Fri-
TEAGUE ras, wine di- day at both Mile End’s locations
rector of in Brooklyn (97A Hoyt St.) and
Gotham Manhattan (53 Bond St.).
Wines & Liquors on Manhat- In Astoria, the Queens Kick-
tan’s Upper West Side, a shaw (40-17 Broadway) hosts
Zinfandel from Sonoma’s an Asian Jewish brunch on
Rockpile vineyard would Thursday with such hybrid fare
make him smile. But, Mr. as egg-cream bubble tea and
Mouzouras added, “If you babka French toast with a Chi-
are really my friend, you nese five-spice syrup. Items are
know that a Nebbiolo would a la carte.
steal my heart.” There isn’t necessarily a Jew-
And for well-wishers ish connection, but the contem-
thinking of giving Mr. Mou- porary Asian restaurant KOA (12
zouras a bottle of Beaujolais, W. 21st St., koanyc.com) is fea-
please don’t. “No Gamay for turing a five-course Happy Holi-
me,” he said. day Dinner ($75 a person)
TIM ROBINSON

One of the best places to through Friday. The meal high-

buy Champagne in New York lights Chinese and Japanese in-
is Astor Wines & Spirits, gredients and preparations, but
where the selection is concludes with a classic dessert,
large—but the prices are Strawberry Romanoff.
not. Naturally, Champagne is the great 2013 vintage or a Mr. Fisch would be happy to but he’s hoping for Beaujo- any Rioja, of course, but the
what the store’s head wine Brunello from 2010—another receive “anything else,” but lais, specifically the 2014 2001 La Rioja Gran Reserva
buyer Lorena Ascencios great vintage where “deals would be particularly happy Fleurie or 2014 Morgon Seleccion Especial 125th An-
City Inspires Latest
would like friends to bring can still be had,” he said. to get a bottle of Cham- from Yvon Metras. But woe niversary bottling. He would Chocolate Collection
to her house, especially the Mr. Posner would rather pagne. Apparently there betide the bearer of a Cham- also be happy with either or Chocolatier Jacques Torres is
wines from small growers not receive a wine aged in a isn’t nearly enough Cham- pagne with an “orangey-yel- both the 1995 and 1996 Cha- paying homage to his adopted
imported by Terry Theise. bourbon barrel. He has been pagne in this wine mer- low label.” That’s exactly the teau Calon Segur, a spar- city. The French native, who has
And the one bottle that she offered a few and turned chant’s house. kind of “mass market” wine kling wine from Spain, nota- been based in the Big Apple
didn’t want to see under her them down. “It just sounds Damien Graef, owner of that Mr. Franco would prefer bly the 2013 Raventos Blanc since 1988, is rolling out a New
tree? “Sweet sherry. There’s strange,” he explained. Bibber & Bell in Brooklyn, not to receive. de Nit, and on and on. York Collection, with each item
never enough acid in them A wine aged in a bourbon would also like Champagne, When I asked Jeff Zacha- Fortunately, Mr. Zacha- inspired by a local landmark or
for me and I just don’t like barrel doesn’t sound half as preferably magnum-size, ria, president of Zachy’s ria’s list of undesirables was icon.
drinking them,” Ms. Ascenc- strange as wine combined maybe from Pierre Gimmo- Wine and Liquor in Scars- blessedly short. No The Brooklyn Bridge is a box
ios said. with chocolate. And yes, net. But well-wishers would dale, N.Y., what he would Coravin—a tool to preserve of chocolate-covered dried blue-
Daniel Posner, proprietor they exist—ChocoVine is a be advised not to downsize. like to receive, he sent me a an open bottle—and no half berries, and the Statue of Lib-
of Grapes The Wine Com- combination of Chocolate li- “No half bottles,” noted Mr. very long and very detailed bottles. After all, holidays erty is a box of chocolate-cov-
pany in White Plains, N.Y., queur and Cabernet. But Graef. “Save those for a wish list. There were para- are for sharing, he pointed ered candied ginger. Strangely
would like “a very large gift Gary Fisch, owner of four Tuesday in January,” he graphs describing his rea- out, though he seemed to re- enough, the Big Apple box fea-
certificate” in order to pur- wine shops in New Jersey said. sons, or what made each lent just a bit. Perhaps a tures chocolate-covered candied
chase 2015 Bordeaux and bearing his name, wouldn’t Matt Franco of MCF Rare wine special. Mr. Zacharia small bottle could be a orange peels. ($12-14 for a 5
Burgundy, but he would set- like anyone to present him Wine in the West Village covered the globe. He would handy stocking stuffer, he ounce box). mrchocolate.com.
tle for a Napa Cabernet from with one. The easy-to-please would also like a magnum, like some Rioja—not just said. —Charles Passy

Tokyo or Telluride. Penthouse or Lake House.

Spirits of the Season
BY ELVA RAMIREZ

Roof Deck or Private Dock. It’s beginning to taste a

lot like Christmas.
While December’s mild
Not the ordinary questions when selecting a property. temperatures so far may not
have New Yorkers cozying up
Then again, this is not an ordinary property website. by the fireplace, bars and
restaurants around the city
RACHEL CORRERA

have added some wintry hol-

iday spirit to their cocktail
menus, often in the form of
INTRODUCING eggnog.
Vaucluse, a French res- Clockwise from above left: Sippin’ Santa’s Surf Shack’s Royal
taurant on the Upper East Tannenbaum; the Normandy Nog at Vaucluse; and Nico de Soto,
Side, is now serving its Nor- the co-owner of Mace, aka Miracle on Ninth Street.
O N LY T H E E X C E P T I O N A L mandy Nog, featuring Calva-
dos and Velvet Falernum, a
liqueur flavored with spices
and lime. Eggnog is also on
the menu at RedFarm, which
serves one with Domaine de
Cantone ginger liqueur and
whiskey, as well as at Sweet-
water Social, which sells a
frozen version.
Two sister bars in the
East Village, Mace and Boil-
ermaker, remake themselves
GABI PORTER (2)

entirely, changing their

names this month to Miracle
on Ninth Street and Sippin’
Santa’s Surf Shack. Until
Thursday, customers can ex-
pect strings of Christmas
lights, holiday playlists and
Santa-themed shot glasses,
as well as Christmas-themed
drinks.
At Miracle, the cocktail
offerings include the Christ-
mopolitan, made with fig-in-
fused vodka, St-Germain and
spiced cranberry syrup; and
the Candy Cane Fizz, with
peppermint-infused gin, but-
termilk syrup, clementine
juice and Prosecco.
Mill Valley, California | Property ID: T2JGZ3 | sir.com
One drink, a mix of
pumpkin-infused rum,
cachaça and other flavors, is
served in a sugar-dusted
A unique selection of prestige properties from around the world, mug shaped like a red knit
mitten. Its name is a wink-
along with premium news, data and insights.
ing, unprintable reference to
mansionglobal.com Bruce Willis’s catchphrase in
the 1988 movie “Die Hard,”
LAUNCH PARTNERS:
which takes place on Christ-
mas Eve in Los Angeles.
“Everyone loves it,” Nico
de Soto, Mace’s co-owner
and head bartender, said of
the drink’s name. “I’ve had
no one ask me why the refer-
Mansion Global is independent of The Wall Street Journal. ence.”
© 2015 Dow Jones & Co., Inc. All rights reserved. 3DJ2091 Sam Gauthier developed
the recipes for Sippin’
Santa’s Surf Shack, including
a Scotch Old Fashioned
served in ice that has been
ground, packed into a sphere
and refrozen—a kind of arti-
sanal snowball.
“I want every one of these
drinks to remind you of a
Christmas memory,” Mr. Gau-
thier said. Rudolph’s Apple
Sling, for example, features
apple brandy, maple and gin,
poured into a glass spritzed
with pine-infused gin.
“It smells real piney, but
then it tastes like apples and
spice and maple,” Mr. Gauth-
ier said. “It’s almost like
you’re sitting in front of a
Christmas tree.”
By the Shack’s third day
of business, Mr. Gauthier
was spending an hour a day
brewing four-gallon batches
of eggnog, which requires
about 18 separated eggs, 12
ounces of sweetener, four
pints of cream, three bottles
of Jamaican rum, 128 ounces
of whole milk, a few whole
nutmegs and an ounce of
Angostura bitters.
The Shack isn’t the only
bar doing a brisk business in
eggnog. At the NoMad, a
five-gallon batch lasts about
one night.
Once the ingredients are
combined, eggnog has a lon-
ger shelf life than its individ-
ual components, said Leo Ro-
bitschek, bar director at
Eleven Madison Park and the
NoMad. “The longer eggnog
sits, the better it gets, be-
cause you’re really infusing
those flavors, so it gets spic-
ier and richer.”
At Miracle, the Jingle
Balls Nog and the Bad Santa,
a warm milk punch, are the
two best-selling drinks. Both
are prepared in the kitchen,
not the bar, so the bar staff
came up with hand signals to
get them out efficiently and
avoid screaming over the
music: Closed fist means
eggnog, open hand means
milk punch.
On Saturday, Kiki Lenoue
was the first in the door at
Miracle, wearing Christmas-
themed leggings and ear-
rings, and she was there, she
said, for the Jingle Balls
Nog. “It’s a little bit like a
dessert in a glass, don’t you
think?”
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.
Isabella Rossellini on Real Success Stories
BY MIKE AYERS
When Isabella Rossellini
got a call from filmmaker Da-
vid O. Russell in 2014 about a
role in his new film “Joy,”
she was quite surprised.
“I never even knew he
thought of me,” the 63-year-
old actress said. Turns out,
he was a big fan of her work
in David Lynch’s 1986 cult-fa-
vorite film “Blue Velvet,” in
which she played a mysteri-
ous nightclub singer. “He
said he wanted to work with
me [for years],” she said.
In “Joy,” Ms. Rossellini
joins Jennifer Lawrence,
Bradley Cooper and Robert
De Niro, a group Mr. Russell
worked together with in both
“Silver Linings Playbook”
(2012) and “American Hus-
tle” (2013). “Joy” is loosely
based on the life of Long Is-
land-based Joy Mangano, in-
ventor of the Miracle Mop
and a QVC and Home Shop-
ping Network star.
In it, Ms. Rossellini plays
Trudy, Joy’s father’s new
girlfriend, whom he meets
through a personal ad. Trudy
plays a small, but important
part in the “Joy” story, as
she provides the seed money
for the budding mop busi-
ness.
Along with “Joy,” Ms. Ros-
sellini starred in a documen-
tary earlier this year that fol-
lowed her one-woman show
“Green Porno Live!,” about
the mating rituals of animals.
And in September, she paid
tribute to her mother, actress
Ingrid Bergman, with a stage
show she co-wrote and per-
formed with actor Jeremy
Irons.
Ms. Rossellini spoke to
the Journal from her home in
Long Island.
“Joy” is such a simple title.
What does it mean to you?
It’s inspired by Joy Man-
gano. David O. Russell
wanted to make sure all of us
actors [knew] that [the film]
was not a biopic, but was in-
spired by women who, in
spite of odds, have made
businesses and succeeded.
It’s almost comical and
Slew of Cinemas Slated for New York City in 2016
BY STEVE DOLLAR
New York cinephiles who
resolve to see more movies in
the new year will have new
and improved options await-
ing them. Two ambitious ven-
ues are nearing completion for
2016, and a popular micro-cin-
ema is about to reboot.
Scheduled to open Feb. 19,
the Metrograph, at Ludlow and
Canal streets, will offer two
screens and art-house pro-
gramming—with digital and
35mm projection in both the-
aters—but also aims to become
a new cinema institution.
It has been a six-year proj-
ect of Alexander Olch, a fash-
ion designer and filmmaker,
who said he was inspired by
the New York theaters of his
youth.
“One of the reasons I fell in
love with movies as a young
boy was going to the particular
theaters I went to, places like
the Beekman Theatre and the
Plaza Theatre,” he said.
The Metrograph, which is
being constructed in a 9,000-
square-foot former food-stor-
LEMM
Continued from page A15
Louis Bonacasa, a 31-year-old
father from Coram, was two
months into his second tour in
Afghanistan.
Mr. Bonacasa’s mother, Di-
ana Bonacasa, said her son
joined the Air Force after high
school in 2002, as the war in
Afghanistan was beginning.
“What gives me a little peace
is that he died as a soldier, do-
ing something that he wanted
to do,” Ms. Bonacasa said.
Mr. Bonacasa leaves a wife
and 5-year-old daughter, Ms.
Bonacasa said, along with
three siblings.
The NYPD, which lost four of
its own on city streets in the
past year, has 130 members de-
ployed with the military.
At the 50th Precinct station
* * * *
yet when you see [Joy’s]
mop, it’s so well thought out.
It couldn’t have come from
anybody else than a woman
who cleaned the floor and
understood what was
needed.
So [the film] talks about
women and their ability for
business or their ability to
invent. [My character] was
more based on David O. Rus-
sell’s fantasy as a writer and
a director, inventing the dy-
namics of this group.
How did you want to portray
Trudy?
I followed the instructions
of the director, who also
wrote the script. I did not do
the research on the people or
the friends. It would have
been incorrect of me to do it.
When did you first meet Rob-
ert De Niro?
Many years ago. In fact,
he was the witness at my
wedding with Martin Scors-
ese. (I married Martin in
’79.) If we ran into him at a
party, we’d say hi. But I
didn’t remain close to him. It
was really this film that cre-
ated the opportunity to
spend time together.
What was working with him
like after knowing him for de-
cades?
I knew him for decades,
but only really saw him when
I was married to Marty [the
marriage ended in the ’80s]
and occasionally ran into him
at parties. He’s very re-
served, very discreet. He
comes across probably as
shy. He doesn’t really like to
chitchat a lot.
But he exudes a great
warmth and a great under-
standing of acting and other
actors. You feel a great soli-
darity when you’re next to
him.
You have some tense scenes
with Jennifer Lawrence. Were
those emotional days filming?
No! It was a lot of fun. Da-
vid often works with the
same actors and he also has
the same crew. They’re all
like a family.
A rendering of Metrograph, which is scheduled to open Feb. 19.
age warehouse, sits adjacent
to the site of the old Loew’s
Canal Theatre, one of the
chain’s opulent New York
movie houses, which opened
in 1927. Mr. Olch said he
wanted to create a richer ex-
perience for his patrons, with
an in-house bar, two-story res-
house Tuesday, in the Knights-
bridge section of the Bronx, an
American flag was lowered to
half-staff, along with flags
across the city.
Flags were also lowered in
Silver Lake, the quaint neigh-
borhood of West Harrison
where Detective Lemm lived.
Barber Fred Riguzzi said he
had cut Detective Lemm’s hair
for years and described him as
a quiet, kind family man who
usually kept his hair short.
“Being he was in the mili-
tary, he liked it short around
the edges, little longer on top
and parted in the middle,” Mr.
Riguzzi said.
Detective Lemm seemed re-
luctant to go back on tour
overseas after his most recent
stop home, Mr. Riguzzi said.
“I think it was tough for
him leaving his family,” Mr.
Riguzzi said.
The shades were drawn at
ARTS & ENTERTAINMENT
Elisabeth Röhm, Robert De
Niro and Isabella Rossellini in
‘Joy,’ above. Ms. Rossellini and
star Jennifer Lawrence, right.
So there’s an atmosphere
of happiness, of solidarity,
and not being nervous if you
make a mistake. They’re very
open. I didn’t belong to the
family, but I felt very wel-
come.
Did you mess up at all?
Oh, it always happens. Da-
vid wants [you] on one hand
to be completely word per-
fect and know the text that
he’s written. But also be
completely ready to impro-
vise.
Sometimes this works
very well, and sometimes
you just say “What am I sup-
posed to do, I got lost!”
Joy faces, and often over-
comes, adversity. Did you
ever feel that way in either
your acting or modeling ca-
reer?
I think that every woman
feels that. But [the film] is a
portrait of a success and suc-
cess is seen from the outside
METROGRAPH
taurant and a bookstore that
will carry film-related titles.
The theaters will seat 170
and 50 people, with respective
screens of 30 and 20 feet in
width.
The venue will feature new
theatrical releases, retrospec-
tives and screenings of classic
CITY NEWS
Mr. Lemm’s small brick house,
where an American flag hung
near the front door. Visitors
toting bags of groceries and
men dressed in military uni-
form entered somberly. The
family declined to comment.
Detective Lemm was also
mourned in Beemer, the small
Nebraska town where he
moved in fourth grade, along
with his younger brother,
mother and stepfather, said his
fourth-grade English teacher,
Cheryl Johnson.
His easygoing personality
allowed him to slip easily be-
tween rural Nebraska and the
big city, where he started off
selling shoes, said Ms. John-
son, 68, who is now retired.
“He put people around him
at ease. He could talk to any-
body,” she said. Despite his
hulking size, “he always had a
hug for people.”
Detective Lemm returned to
as an incredible rise and ev-
erything is beautiful.
Success is often obtained
with very hard work, with
many ups and downs. Not a
constant ascending.
Were there any moments in
your career where you felt
down?
There are ups and downs
in everybody’s career. Of
35mm prints, and the film se-
lection will be “fairly rigor-
ous,” said Jake Perlin, the
Metrograph’s programming
and artistic director.
Another new venue, with an
as-yet unspecified 2016 open-
ing date, is the Alamo Draft-
house City Point. The seven-
screen theater will be part of
City Point, a 1.8-million-
square-foot, mixed-use devel-
opment on Albee Square in
downtown Brooklyn, a short
walk from BAM and the Fort
Greene arts district.
The project is part of the
Texas-based Alamo Drafthouse
chain, which launched a Yon-
kers franchise in 2013, and re-
mains committed to 35mm
projection, alongside digital,
supplementing mainstream re-
leases with revivals of cult and
classic films.
The chain is known for its
creative short-order menu and
craft-beer selections, along
with reviving the lost art of
the preshow short subject—
with montages of vintage ani-
mation and movie clips—that
relate to the main attraction.
Nebraska frequently, she said,
sometimes bringing members
of the NYPD with him. They
would go hunting for pheas-
ants, she said.
As a child, he worked dili-
gently at team sports, even
when he didn’t get much play-
ing time, Ms. Johnson said. By
his junior and senior year, the
hours of practice paid off: He
became a starter in football
and basketball.
When Ms. Johnson and
some friends visited New York
City shortly after 9/11, Mr.
Lemm met his former teacher
and showed them Ground
Zero, sharing his experience of
working on that day, she said.
“He was never scared to do
something he had to do,” she
said.
Jan Liermann, 58, lived two
houses down from Detective
Lemm when he was in high
school. She remembered him
Wednesday, December 23, 2015 | A19
course, I was asked to leave
Lancôme when I turned 40.
I feel a little bit embar-
rassed to talk about myself.
It feels like you want to make
a biopic. [Laughs.] There’s a
certain amount of hardship
for everybody.
Did you ever go through a
QVC phase?
No, I didn’t. I was in
The Brooklyn venue will in-
clude a stand-alone bar named
after the 1953 Vincent Price
horror movie “House of Wax.”
At the other end of the
scale is Spectacle, a 30-seat
cinema that has occupied a
former bodega in Williamsburg
for the past five years. The
venue’s adventurous programs
have included “The Shining
Backwards and Forwards,” in
which the Stanley Kubrick film
is projected in both directions
to disturbing effect.
When a new lease man-
dated a rent increase, the
group acquired nonprofit sta-
tus for the theater and
launched a Kickstarter cam-
paign that raised $40,000. It
was enough to keep the ticket
price at $5, and pay for im-
provements on the South
Third Street site.
When the theater reopens
Jan. 4, patrons will notice
some firsts: soundproofed
walls and an air-conditioning
and heating system. The digi-
tal projection and sound sys-
tems also will be updated.
That isn’t so true for IFC
Staff Sgt. Louis Bonacasa was on his second tour in Afghanistan.
as a sweet teenager with a
mischievous streak, not above
scaring “the heck out of her”
with clown masks on Hallow-
een—but always available to
help with the lawn.
COURTESY TWENTIETH CENTURY FOX (2)
America when it became
popular, but I never bought
anything. I looked at it, be-
cause it was a big novelty.
What do you like to do in
New York these days?
I make a point to come
to the city to see the the-
ater and films that are hard
to see if you’re not in the
city.
Center, with its cluster of five
screens packed inside the for-
mer Waverly Theater at Sixth
Avenue and West Third Street.
The venue seeks to build a
three-story expansion on an
adjacent vacant lot on Corne-
lia Street, a project that would
double its size to roughly
20,000 square feet.
The new structure would
add six screens to the existing
five, and raise capacity from
480 to 940 seats. A spokesper-
son offered no firm timetable
for the project, which must
still receive a zoning variance
and be subject to public hear-
ings.
Whether or not a project as
personal as the Metrograph
can compete, down the line,
with more branded, corporate
entities didn’t seem to worry
Mr. Olch.
“We hope we are reasonably
smart and strategic,” said the
designer. “The determination
and really the energy force to
get something like this to hap-
pen really comes from a little
bit of an irrational place.
That’s what makes it exciting.”
BONACASA FAMILY
“If you needed help he was
there,” she said.
—Derek Kravitz,
Thomas MacMillan
and Rebecca Davis O’Brien
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
A20 | Wednesday, December 23, 2015
The Growing Pains of Kristaps Porzingis
The Knicks’ star rookie is
slumping but playing him
in tough spots may be part
of the NBA’s learning curve
BY CHRIS HERRING
One question seemingly hovered
over the Knicks franchise before the
season: How would this team toe the
difficult line between development
and dedication to winning now,
while star Carmelo Anthony, at the
age of 31, enjoys the last year or two
of his prime?
For a while, with the unexpectedly
strong play of 20-year-old rookie Kri-
staps Porzingis, the issue became
moot. But lately, with Porzingis
shooting 29% in the last seven
games, and the team fighting to stay
afloat in a strengthened Eastern Con-
ference with a 14-15 record, the line
has become blurred again in terms of
which path the Knicks are taking.
That dilemma—between letting
Porzingis ride out what could be a
tough learning curve, or taking a
more conservative approach with
him and leaning more heavily on vet-
erans—was on display Monday, when
the Knicks lost to Orlando, 107-99.
Coach Derek Fisher subbed out
Porzingis, who had been impactful on
defense, with four blocks, to bring
veteran Robin Lopez off the bench as
Magic center Nik Vucevic prepared to
re-enter the game with Orlando
ahead, 85-83, and seven minutes left.
The second-year coach made the
switch despite Vucevic having domi-
nated Lopez (he shot 70%, or 12-of-17
with Lopez serving as his primary de-
fender) in the post during the game.
Fisher made the change because he
had more faith in Lopez (7 feet, and
256 pounds) to stop Vucevic (7 feet,
260 pounds), even though he hadn’t
been able to earlier in the game.
“Physically, Robin can match size
with Vucevic and Lance [Thomas,
who shot 9-for-9] was playing well
at [power forward]. So who do you
Heard On
The Field
Prokhorov’s Onexim
Buys Full Nets Stake
Mikhail Prokhorov, the majority
owner of the Brooklyn Nets, has
reached a deal to take full owner-
ship of the team and a 100% stake
in the Barclays Center, through his
Onexim Sports and Entertainment,
the team said on Tuesday.
The Prokhorov deal marks a loss
for real estate developer Forest City
Enterprises Inc., which banded to-
gether with a group of investors to
buy the Nets in 2003 in a bid to
build the Brooklyn arena and a giant
surrounding housing development.
While it sold most of the team to
Mr. Prokhorov in 2009, it kept a
55% stake in the arena, which it
hoped to turn into a cash cow.
Instead, it has been a financial
disappointment, trading to Mr. Prok-
horov at a value of $825 million—
well below the roughly $1 billion it
cost to construct. Profits from the
various concerts and other events at
the arena have proved thin, and last
year, it brought in about $40 million
a year in operating income, compared
with the more than $75 million the
company previously projected, ac-
cording to Forest City securities fil-
ings —Eliot Brown
The 9-5 Jets Have Been Feasting on the NFL’s Weaklings
With a 9-5 record and a four-
game win streak, it’s happy times in
Jets land. Until the realization strikes
that the team could win their last
two regular-season games and still
miss the playoffs in the AFC.
Take a Number
But if the Jets do miss out on the
postseason, they can only rue the
missed opportunity they had for fail-
ing to take advantage of the AFC’s
softest schedule. Put simply, the Jets
have beaten one team—the 6-8 Gi-
ants—who have scored more points
this season than they have allowed.
Sure, the Jets rank in the top 10 in
total offense and defense. But after
factoring in the point differential of
their opponents—and further the
point differential of the opponents
their opponents have faced—the Jets’
schedule is the equivalent of playing a
team 3.7 points worse than average.
After a hot start, Kristaps
Porzingis has shot 29% in
his last seven games.
take out?” Fisher asked, adding that
there was no guarantee Porzingis
would’ve better contained Vucevic,
who finished with 26 points.
On some level, it might have
served the Knicks well to see if Por-
zingis—who stands 7-foot-3 with a 7-
foot-6 wingspan, but a thin 240
pounds—could have held his own in
that spot, given that there was noth-
ing to lose by at least testing an al-
ternative strategy.
But even Porzingis himself, who’s
spent 26% of his minutes so far at
center, according to Basketball-Refer-
ence, sounded unsure of whether he
Mets Make Another Move Without a Splash
BY JARED DIAMOND
In another off-season filled with
teams lavishing marquee players
with record-breaking contracts, the
National League champion Mets to
this point have once again opted for
austerity. Instead of attempting to
retain free agent Yoenis Cespedes or
pursue another big name available
on the market, the Mets have com-
pleted nearly their entire winter
checklist without acquiring a star or
spending much money.
On Tuesday, the Mets agreed to
sign outfielder Alejandro De Aza to
a one-year deal worth $5.75 million,
pending the results of physical. He
could earn up to an additional $1.25
million in performance-based incen-
tives. The lefty-swinging De Aza,
who turns 32 in April, will likely pair
with the right-handed Juan Lagares
in a center field platoon. The Mets
considered other options for the
role, including Denard Span, but
didn’t want to offer him a multi-year
contract.
By adding De Aza, the Mets con-
tinued their trend of stockpiling ver-
satility and depth around the field
without breaking the bank.
Earlier this month, they traded
starting pitcher Jon Niese to the
Pittsburgh Pirates for second base-
man Neil Walker, then signed short-
stop Asdrubal Cabrera to a two-year,
$18.5 million deal. Next, they
The Easy Road
How AFC teams rank in strength of schedule based on the adjusted point differential
of their opponents, which also factors every team that opponent played.
OPP. ADJUSTED
TEAM/RECORD PT. DIFF/GAME
1. Pittsburgh (9-5) 2.7
2. Cleveland (3-11) 2.4
3. Kansas City (9-5) 2 11. Houston (7-7)
4. Denver (10-4) 1.9
5. Oakland (6-8) 1.9
6. San Diego (4-10) 1.8
7. Cincinnati (11-3) 1.4
8. Baltimore (4-10) 1.4
Source: Pro-Football-Reference
That is the easiest in the AFC and
only the 6-8 Tampa Bay Buccaneers
(minus-3.9) are worse in football.
To be fair, the schedule the Caro-
lina Panthers have played hasn’t been
much harder, according to Pro-Foot-
ball-Reference’s calculations, at 3.4
SPORTS
would’ve been able to stop Vucevic.
“Strength-wise, I still need to get
stronger to be able to [do that],” said
Porzingis, who generally sounds a
more confident tone. “I use my activ-
ity and aggressiveness on defense to
make plays in the post when [an op-
posing big man] is trying to receive
the ball. Robin’s more of a guy who
can hold him, and I’m more of a guy
who can dance around him and get a
steal. That’s more my game now, be-
cause I’m not able to hold those guys
yet. But I’m putting in a lot of work
now, and I’ll put in a lot of work in
the off-season so that next year I can
brought back starting pitcher Bar-
tolo Colon and reliever Jerry Blevins
for a total of $11.25 million. They
also saved at least some of the $12.5
million they owed to Michael Cud-
dyer, who announced his retirement.
All told, the Mets currently have
roughly $65 million committed in
salary heading into 2016, while the
website MLB Trade Rumors predicts
their nine arbitration-eligible players
OPP. ADJUSTED
TEAM/RECORD PT. DIFF/GAME
9. Buffalo (6-8) -0.2
10. Indianapolis (6-8) -0.7
-1
12. Miami (5-9) -1.6
13. New England (12-2) -2.3
14. Tennessee (3-11) -2.5
15. Jacksonville (5-9) -3
16. N.Y. Jets (9-5) -3.7
The Wall Street Journal.
points below average. But the Pan-
thers have steamrolled their soft slate
to a 14-0 record. Meanwhile, the Jets
have lost to the Philadelphia Eagles
(6-8), Oakland Raiders (6-8) and
Houston Texans (7-7), who have com-
bined to allow 107 more points than
SETH WENIG/ASSOCIATED PRESS (PORZINGIS); TONY AVELAR/ASSOCIATED PRESS (DE AZA); TAN: IAN MCVEA/ZUMA PRESS
* ***
be more prepared to play [center].”
While he’s shown he can do the job
as a primary defender on stretch
power forwards (limiting Anthony
Davis to 6-of-14, Kevin Love to 4-of-13
and Chris Bosh to 3-of-12, according
to NBA Savant), he’s struggled to stop
a handful of centers who are most
comfortable playing with their backs
to the basket, like DeMarcus Cousins
(4-of-8), Karl-Anthony Towns (6-
of-8), John Henson (4-of-5) and Tiago
Splitter (4-of-4). So there’s a decent
chance Vucevic would’ve continued
that trend, given that Porzingis “is
not a finished product” at center yet,
The Mets agreed to sign
outfielder Alejandro De
Aza to a one-year deal
worth $5.75 million.
will earn around $38 million com-
bined. The Mets still expect to find
another bullpen arm and perhaps a
right-handed first baseman behind
Lucas Duda before reporting to
spring training in February. But at
this point, unless they spring for an
upper-tier free agent, the Mets could
enter next season with a payroll in
the bottom third of the sport.
That, however, doesn’t necessarily
they’ve scored.
The only top-echelon team the
Jets have faced this season, the 12-2
New England Patriots, beat them
30-23 in Week 7. The Jets face the
Patriots again on Sunday and the
scheduling gods may be shining on
THE WALL STREET JOURNAL.
as Fisher said recently.
Still, the coach should know that
challenging his rookie, and seeing
what Porzingis is capable of, carries
more benefit than repeatedly using a
veteran who isn’t getting the job
done on a given night—especially
since, with a solid start to the season,
Fisher will likely get the benefit of
the doubt this year from team presi-
dent Phil Jackson, who hired him into
the job and with whom he shares
personal and professional ties.
Above all else, the scenario, both
on Monday and going forward, is a
litmus test for a franchise that is in
the process of becoming more pa-
tient with its young players after de-
cades of having skipped that step.
(The Knicks have seen an NBA-high
99 different players suit up and play
since 2009—nine more than any
other team, according to Stats LLC—
and haven’t re-signed a first-round
pick to a multiyear deal since Charlie
Ward in 1999.)
Striking a balance is what the
Knicks have to learn to do, both with
Porzingis and fellow first-rounder
Jerian Grant, who recently had a
pair of eyebrow-raising DNPs where
31-year-old Sasha Vujacic, who owns
the NBA’s second-lowest field-goal
percentage, played over him.
Fisher should feel a bit more com-
fortable letting Porzingis play with-
out Carmelo Anthony having to be
on the court simultaneously, to stag-
ger the team’s scoring options better
and to gradually let the Latvian
rookie experience what it’s like to
have a handful of possessions run
through him, as the offense’s main
option. (Just 10% of his minutes, less
than three minutes a night, have
come with Anthony on the bench.)
Either way, Fisher and the Knicks
would be wise not to get too caught
up in the standings and the fact that
they remain in contention for a playoff
spot. More than anything, they need
to do all they can to help Porzingis
mature as a player, and some of that
stems from giving him opportunities
in scenarios like Monday’s game.
mean the Mets won’t field a roster
capable of vying for a return trip to
the World Series.
They still have arguably the best
starting rotation in the major
leagues with Matt Harvey, Jacob de-
Grom, Noah Syndergaard, Steven
Matz and Zack Wheeler, who should
return from elbow surgery sometime
next summer. Those five players will
probably make less than $8 million
combined next year.
The Mets also hope to receive
more production from third baseman
David Wright and catcher Travis
d’Arnaud, who both missed signifi-
cant time last year because of inju-
ries, and look forward to a full year
of outfielder Michael Conforto, who
came up from the minors last July.
It also doesn’t mean that the
seemingly modest moves they’ve
made—and will continue to make—
won’t significantly help them.
De Aza posted an on-base-plus-
slugging percentage of .800 against
righties last season playing for the
Baltimore Orioles, Boston Red Sox
and San Francisco Giants, while
Lagares owns a career .753 OPS
against lefties. In eight major-league
seasons, De Aza has a .267 batting
average with 45 home runs and a
.736 OPS. Questions, however, re-
main about De Aza’s ability to han-
dle center field on a regular basis:
He has played just 17 games there
over the past two seasons.
them once more as Patriots coach Bill
Belichick said in a conference call ear-
lier this week that he’ll “give some
thought” to resting key players since
his team has already clinched a first-
round bye.
—Michael Salfino
 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
Boeing in Sweeping Pact
With FAA Over Quality
AVIATION | B3
© 2015 Dow Jones & Company. All Rights Reserved.
SCOTT EELLS/BLOOMBERG NEWS
Sprint hired wireless executive Sol Trujillo for advice it didn’t use.
Sprint Paid Up
For Advice It
Quickly Shelved RV Sales Revive, but Without Frills
BY RYAN KNUTSON
Sprint Corp. recently paid a
small team of consultants at
least $25 million for advice
that largely was never used,
according to people familiar
with the matter.
Shortly after Marcelo
Claure became chief executive
of Sprint last year, he hired a
group of about a dozen advis-
ers, led by wireless telecom
veteran Dennis “Sol” Trujillo,
to help him in the new job and
design a plan to improve net-
work quality at the nation’s
No. 4 wireless company by
subscribers.
For roughly five months of
work, the consultants received
between $25 million and $30
million, said the people famil-
iar with the matter. The deal
was originally set to pay
around $50 million for a year’s
work, but the arrangement
ended after Sprint Chairman
Masayoshi Son disagreed with
many of Mr. Trujillo’s recom-
mendations, the people said.
The sum raised eyebrows
among Sprint managers be-
cause it was significantly more
than what outside consultants
in the past were paid, accord-
ing to these people, and be-
cause the carrier has been un-
dergoing a major cost-cutting
effort. The contract was nego-
tiated by Mr. Claure personally
Falling Behind
Sprint has slipped behind
T-Mobile in number of wireless
subscribers
65 million
T-Mobile
60
61.2m
55 Sprint
50
58.6m
45
40
35
2014 ’15
Source: UBS
THE WALL STREET JOURNAL.
Surprise Hot Gift Squeezes Retailers
BY SARAH NASSAUER
In search of an elusive holi-
day gift Melissa Inman looked
in almost a dozen stores,
spent hours online and even
enlisted friends and family in
other states.
It wasn’t a hot toy causing
the 33-year-old hairstylist
from Dacula, Ga., to go to such
lengths. It was a $40 stainless-
steel insulated mug, called the
Yeti Rambler.
“I have a friend who is in Il-
linois for business and has
gone to 15 different stores,“
says Ms. Inman, who was try-
ing to buy the mug as a class
Christmas gift for her daugh-
ter’s teacher. Last week, she fi-
nally bought one from another
Dacula resident.
WSJ.D B5 | CAREERS B7 | CROSSWORD B8
BUSINESS & TECH.
* *
and without the input of some
executives typically involved
in such deals, the people said.
A Sprint spokesman said
Mr. Trujillo and his team’s re-
view of the company spanned
all of its operations and that
some of the advice was put to
use. The spokesman also said
the size of the contract wasn’t
out of the ordinary.
Mr. Claure said in a recent
interview that he brought in
the advisers because he
wanted to ensure the company
was on the right path as it up-
graded its wireless network.
“I only get one shot at
building this network,” he
said. “I want to make sure we
really got it right.”
Others close to the situa-
tion say that even though Mr.
Trujillo’s network advice
wasn’t used, his presence
helped force tough decisions
on network planning that oth-
erwise may have lingered. “It
accelerated a discussion on
topics that Marcelo may not
have gotten to for a while,”
said one of those familiar with
the matter.
The situation provides a
window into the early days of
Mr. Claure’s tenure at Sprint,
which has been marked by a
stream of executive departures
and strategic shifts. Since Mr.
Claure took over, seven senior
executives have left. Sprint’s
stock has lost about a third of
its value during that time, al-
though the carrier has re-
cently stemmed subscriber
losses and its network speeds
and reliability are starting to
improve, network analysts say.
Sprint has been borrowing
to sustain its cash use, and
debt-rating firm Moody’s In-
vestors Service lowered its
junk credit rating in Septem-
ber. The company lost $585
million in its latest quarter
and hasn’t been profitable on
an annual basis since 2006.
Mr. Claure’s mandate at
Sprint has been to stop losing
money and start adding sub-
scribers. He took over in Au-
gust 2014, just as Mr. Son’s
SoftBank Group Corp. and
Please see SPRINT page B2
The travel mug is made by
Yeti Coolers LLC, a small, nine-
year-old Austin company
known mostly for its $400 cool-
ers that promise to keep things
cold for days. It also is a way
for consumers to grab some of
the Yeti prestige without spend-
ing big bucks, retailers say.
The problem is Yeti didn’t
make enough mugs. That has
left retailers such as Cabela’s
Inc. and West Marine, scram-
bling. It also is testing retail-
ers’ ability to juggle inventory
and turn a profit at a time
when more shopping is mov-
ing online, a trend that has ac-
celerated this holiday season.
The Yeti shortage pits re-
tailers against a growing chal-
lenge: rising delivery costs. As
retailers fill more orders from
THE WALL STREET JOURNAL.
Cable Deal Hits New Bumps
New York City
regulators scrutinize
plan by Europe’s Altice
to acquire Cablevision
BY SHALINI RAMACHANDRAN
AND NICK KOSTOV
Altice NV’s $10 billion deal
to buy cable operator Cablevi-
sion Systems Corp. is running
into unexpected turbulence in
New York City.
Since the European telecom
operator announced the U.S.
cable acquisition in Septem-
ber, Cablevision’s shares have
sunk further below Altice’s all-
cash offer of $34.90 a share.
The stock is trading 9% below
the agreed takeover price, re-
flecting investors’ concerns
Many buyers opt for cheaper models as vehicles are snapped up at fastest pace in years
Road Trip 2010
Wholesale 2012
shipments of
recreational 2014
vehicles in North
America 2016
0 100,000
Note: 2015 is an estimate Source: Recreation Vehicle Industry Association
BY JAMES R. HAGERTY
Americans are buying recreational
vehicles at the fastest rate in more than
a decade. Unfortunately for RV makers,
many are hitting the road in smaller,
less expensive models.
North American retail sales of RVs in
the first 10 months of 2015 grew 11%
from a year earlier to 334,528 units, ac-
cording to Statistical Surveys Inc., a re-
search firm. That was slightly above the
prerecession peak in 2007 and up about
78% from the low point in 2009.
At a trade show in Louisville, Ky., in
early December, industry leaders
flashed confidence, citing the legions of
baby boomers retiring and hitting the
road, as well as younger adults drag-
ging their children into the wilds for a
both distribution centers and
stores to speed delivery times
and compete with the likes of
Amazon.com Inc., costs are
rising. That makes shipping a
$40 cup less profitable than
selling it in stores.
Still, even small retailers
say they need to meet the
shopper where they want to
buy, online or off.
The 260-store West Marine
chain allocated the majority of
its Yeti cups to fill online or-
ders, says Matt Hyde, West
Marine chief executive. “We
are getting a disproportionate
number of new customers
shopping with West Marine
for the first time ever because
we have Yeti,” he notes.
Still, when an online shopper
“buys one Yeti tumbler and we
Christmas Turns Touchy
For Many Companies
CAREERS | B7
Wednesday, December 23, 2015 | B1
about the deal closing. Maya Wiley said the city is going to impact the economy of
“The spread has widened in concerned about whether Al- New York and quality of ser-
large part because people have tice has the financial where- vices?” Ms. Wiley asked. “We
become increasingly con- withal to digest Cablevision certainly are not afraid to disap-
cerned that neither the city without skimping on customer prove a transaction.”
nor the state will find that the service and infrastructure up- The scope of the city’s au-
transaction is in the public in- thority is a point of conten-
$10B
terest, or alternatively, they’ll tion. The companies are seek-
demand so much in terms of ing approval from the Federal
givebacks that ultimately the Communications Commission
deal won’t be palatable to Al- Value of the European telecom and New York’s Public Service
tice,” said Craig Moffett, ana- operator’s announced purchase Commission, but told the city
lyst at MoffettNathanson LLC. of Cablevision Systems. in a letter that their deal
New York City has said it doesn’t need its approval be-
has “a number of important cause Cablevision’s “franchise”
concerns” about the merger grades for faster Internet contract with the city exempts
and believes it has the power speeds. Ms. Wiley said the city its cable services from review.
to deny the deal if it finds it is also concerned about the They have filed for approval
isn’t in the public interest. Ca- impact on jobs. Altice has a with the city, but only regard-
blevision’s 3.1 million custom- reputation for instituting dras- ing Cablevision’s business-
ers are concentrated in the tic cost cuts. telecom arm.
greater New York market. “Altice is talking about $900 New York City believes it
In an interview, Mayor Bill million in synergies. Well, has solid legal standing to re-
de Blasio’s top legal counsel what’s getting cut? How’s that Please see CABLE page B2
STEPHEN KRONINGER
2016 forecast
375,100 vehicles
200,000 300,000
THE WALL STREET JOURNAL.
brief break from gadgets (while gener- naden was prepared to spend up to
ally insisting on Wi-Fi coverage at $150,000 but concluded he could pay
campgrounds). far less for a more compact model.
“We’re in the right place at the right “I didn’t want a bus,” Mr. Bernaden
time,” said Doug Gaeddert, a general said. He and his wife decided they could
manager at Forest River Inc., an RV survive without the fireplace, walk-in
maker owned by Warren Buffett’s Berk- closets, and washer-dryer combos that
shire Hathaway Inc. fit in 40-foot-plus models. After consid-
Better-informed customers, though, ering flying to Texas for a bargain he
are keeping a lid on profit margins. saw on the Internet, Mr. Bernaden
Consumers are doing more homework chose a 26-foot Forest River Sprinter
online, sometimes buying from faraway that had been used as a demo model by
dealers. Younger adults and many retir- his local dealer in Milwaukee. Its
ees are going without frills. $80,000 price tag included three TVs.
Kathleen and John Bernaden spent Cooper’s RV Center, near Pittsburgh,
months researching and shopping for lists discounts of more than $10,000 on
an RV as he prepared to retire in June its website. Paul Willis, general man-
as corporate affairs director at Rock- ager, said he frequently finds buyers as
well Automation Inc. in Milwaukee. far away as Florida. As Internet shop-
They even toured RV factories. Mr. Ber- Please see RV page B2
ship it for free that’s not a super
profitable order,” Mr. Hyde says.
The average profit for the cup
is about 40%, he estimates. For
the holidays, West Marine is of-
fering free shipping on its web-
site, adding to the cost of deliv-
ery. The retailer has sold out of
Yeti Rambler cups online, but
still has some in stores, he says.
F. MARTIN RAMIN/THE WALL STREET JOURNAL
Steve Barr, U.S. retail and
consumer analyst at PwC, a
professional services firm,
says: “Everybody loves to sell
products that are in demand.
The important thing is that
the products are profitable,”
which for now is easier for
most retailers to do so from
brick-and-mortar stores.
Another challenge is the
lack of real-time inventory in-
Please see YETI page B8 The stainless-steel insulated Yeti cup is a hot holiday item.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Wednesday, December 23, 2015 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS NEWS

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

A
Abercrombie & Fitch...B4
Alibaba Group
Holding......................C3
Alphabet.........B2,B4,C10
Altice...........................B1
Amazon.com..........A1,B8
Anbang Insurance
Group.......................C10
Anheuser-Busch
InBev.........................A1
Apple......................B2,B8
Avant...........................C2
B TerraForm Global ........ C1
Bank of America.......C10
Baoneng Group ......... C10
Bass Pro Shops...........B8
Berkshire Hathaway...B1
BG Group.....................B4
Boeing ......................... B3
Bundt Cakes
Enterprises...............D3
C said, and Google continues to
Cabela's.......................B4
Cablevision..................B1
China International
Capital.......................C3
China Resources
Group.......................C10
China Vanke .............. C10
Chipotle Mexican Grill...C4
Cimarex Energy...........C4
CITIC Securities .........C3
Citigroup...............C2,C10
Coca-Cola................B7,C2
ConAgra Foods............B3
ConocoPhillips.............C4
Credit Suisse .............. A2
E Royal Dutch Shell.......B4
Everbright Securities..C3
INDEX TO PEOPLE
A Fields, Mark................B2
Adetunji, Adeola.........C2
Ahluwalia, Ram...........C2
Arth, Aaron.................C3
B Goei, Dexter................B2
Brosnan, Damien ........ C3
Buffett, Warren........C10
C R
Carlier, Emmanuel......B2
Clark, Don....................B2
Claure, Marcelo...........B1
D News of the talks lifted Ford
Dahya, Hanif ............... C2
E-F
Edwards, Trevor..........B4
Einhorn, David.............C2
F
FedEx...........................B4
Filmed Entertainment...B8
Ford Motor...........B2,C10
Forest River................B1
G Mr. Casesa is leading a strat-
General Electric...........C2
Goldman Sachs
Group.......................C10
Google ......................... B5
Grand Design Recreational
Vehicles......................B2
H
Hilton Worldwide
Holdings....................C1
Hyatt Hotels ............... C1
J 1.0
J.P. Morgan ............... C10
M 0.5
Microsoft.....................B7
Morgan Stanley...C3,C10
N United Parcel
Netflix.........................B8
Nike.............................B4
Noble Group ................ C4
O Victory Park Capital....C2
Oasis Petroleum ......... C4
P VPC Specialty Lending
Pandora Media............B4
Petrobras.....................C1
Prosper........................C2
Q West Marine...............B1
Qatar National Bank...C3
R-S
Recruit Holdings.........B7
Santander Consumer
Ford, Bill......................B2
G Minegishi, Masumi.....B7
Gaeddert, Doug...........B1
Goldstein, Al...............C2
Grant, R.J....................C4
Grassley, Charles ........ C9
H-I
Hague, Michael...........C1
Huffman, Beth............B7
Ireland, Jay..................C2
J-M
Janisch, Karen............A3
Latif, Wasif.................C4
Lerdal, Mark................C2
Lippman, John ............ B8
USA Holdings............C2
Shenzhen J-star Project
Management
Consultant................A7
Shenzhen Luwei Property
Management.............A7
Simon Property
Group.........................B7
SoftBank Group..........B1
Sprint .......................... B1
Starbucks....................B7
SunEdison....................C1
T talks.
TerraForm Power ........ C1
Tesla Motors........B2,C10
T-Mobile US................B4
Transcorp Hotels.........C2
Transocean .................. C4
TreeHouse Foods........B3
U Any agreement wouldn’t be
Uber Technologies...B2,C10
Service.................A1,B4
USG People.................B7
V
Volkswagen..........B7,C10
Investments..............C2
W acceleration
Wells Fargo..........A2,C10
Whiting Petroleum.....C4
Y son said.
Yeti Coolers.................B1
Z need to be integrated into fu-
Zongxing Technology..A7
Marsh, Galen...............C3
McDowell, Michael.....A3
Moffett, Craig.............B1
Moskowitz, Tobias......C4
Mulder, Alex................B7
O declined to comment.
Ozigbo, Valentine........C2
Robbins, Larry.............C2
T nology was reported earlier by
Tepper, David .............. C2
Tripp, Dena..................D3
Trujillo, Dennis............B1
W trading on Tuesday. Its shares
Weir, Ian......................C4
Wuebbels, Brian ......... C2
Ford, Google Pursue Auto Venture
BY CHRISTINA ROGERS
AND ALISTAIR BARR
Ford Motor Co. is pursuing
a deal with Alphabet Inc.’s
Google to build self-driving
cars that would use the soft-
ware giant’s technologies, said
a person familiar with the
The talks are intended to
help Ford, which under Chief
Executive Mark Fields has
sharpened its focus on advanc-
ing car technologies, accelerate
its efforts to bring autonomous
cars to market.
exclusive to Ford, this person
talk with other auto makers. A
partnership could be an-
nounced early next year, the
person said.
As part of the deal being
considered, Ford would develop
software for components in-
cluding steering, braking and
while Google
would provide the overarching
self-driving software that gov-
erns those functions, this per-
Autonomous-driving tech-
nologies and sensors would
ture Ford vehicles so they don’t
protrude. Google’s latest proto-
type cars have integrated sen-
sors in their design.
In a statement, Ford said it
is talking to a variety of compa-
nies about advancing its mobil-
ity plan but the talks are pri-
vate and it declined further
comment. A Google spokesman
Discussions between the two
companies on an autonomous-
driving car using Google tech-
website Yahoo Autos.
stock 3.4% to $14.20 in 4 p.m.
are off nearly 18% between Mr.
Jump Start
Despite record profits in North America, Ford’s share price is struggling.
Pre-tax profit in North America
$3.0 billion 3Q 2015
$2.7B
2.5
2.0
1.5
0 10
2014 ’15
Sources: the company; WSJ Market Data Group
Fields taking the wheel in July
2014 and Tuesday’s close, de-
spite the company earning re-
cord profit in North America
this year.
Earlier actions such as rais-
ing the dividend and showcas-
ing future innovation have
fallen flat with investors. This
month, Mr. Fields disclosed
plans to spend $4.5 billion to
Ford is in talks with
Google to build self-
driving cars with the
software giant’s tech
develop electrified vehicles
through 2020, and Ford’s stock
price barely reacted.
Meantime, recent and poten-
tial automotive rivals such as
Apple Inc., Tesla Motors Inc.
and Uber Technologies Inc.
have captured much of the
stock momentum Ford was at-
tracting a few years ago when
it avoided bankruptcy during
the financial crisis. Tesla is val-
ued by investors at about $30.1
billion, or more than half of
Ford share price
$20 July 1, 2014
Mark Fields is named
president and CEO
18
16
14
12
Tuesday
$14.20
2014 ’15
THE WALL STREET JOURNAL.
Ford’s current market capital-
ization.
“What we’re seeing is fa-
tigue from the stock,” said
Brian Johnson, a Barclays auto
analyst, referring to Ford
shares’ lackluster performance
this year. “With Ford at record
levels of profitability, it is just
too easy for investors to say
‘this can’t last,’ ” Mr. Johnson
added.
Mr. Fields disagrees. “We
can find ways to generate reve-
nue on a more consistent ba-
sis,” he said in a recent inter-
view, noting such businesses
can act as “buffer” against in-
dustry ups and downs. He has
said Ford can’t end up like
Nokia Corp., a once-dominant
phone maker that fell behind in
the smartphone industry.
Central to Mr. Fields’s new
strategy is a focus on services.
Ford recently expanded its Sili-
con Valley research and devel-
opment lab and has recruited
several outsiders, including for-
mer investment banker John
Casesa and former aerospace
executive Ken Washington, to
focus on tech development and
mobility services such as ride
sharing and short-term car
rentals.
egy team looking for tech-sec-
tor partnerships and steering
investments to new areas. In
November, Ford hired another
former banker, Joseph Heyer,
to lead business development
and figure out ways to mone-
tize the service businesses it is
testing.
Ford Chairman Bill Ford also
is looking toward a future where
technology will change the way
people get around. His venture
fund, Fontinalis Partners LLC,
has provided venture funding
for Lyft Inc., an Uber competi-
tor, and says if Ford is to com-
pete in Silicon Valley’s world,
“we’re going to need partner-
ships with big companies and
startups…we have to make great
cars and trucks today but we
also have to imagine a future of
transportation as service.”
“This is a family-run busi-
ness that understands the
boom times are quickly fol-
lowed by survival times,” Mor-
gan Stanley auto analyst Adam
Jonas said, noting that Apple
could disrupt the traditional
model of owning a car.
Ford also needs to keep pace
with traditional rivals.
General Motors Co. will in-
troduce a new 200-mile range
electric car, the Chevrolet Bolt,
by 2017 and is developing a so-
called “Super Cruise” feature
for Cadillac that will allow driv-
ers to ride in a car with hands
off the steering wheel on the
freeway.
Toyota Motor Corp. recently
announced it would establish a
$1 billion research lab in Silicon
Valley to accelerate the devel-
opment of smartcars and in De-
cember acquired a small stake
in machine-learning venture
Preferred Networks Inc.
—Mike Ramsey
contributed to this article.

CABLE capacity fiber lines closer to

homes to increase Internet
speeds and improve network
reliability.
Continued from the prior page Ms. Wiley said the city
view the deal, based on its in- needs more than just a prom-
terpretation of the franchise ise, but “the demonstration of
contract. The city is taking on the ability to make good on a
JEFF SWENSEN FOR THE WALL STREET FOR THE WALL STREET JOURNAL

a more expansive role than it promise.”

did during Comcast’s ill-fated Ms. Wiley said there hasn’t
attempt to buy Time Warner been a situation during the de
Cable. City officials say Cable- Blasio administration where
vision’s and Time Warner Ca- federal regulators have ap-
ble’s franchise agreements proved a deal and the city has
give the city approval power blocked it. Local authorities
over deals with a cash compo- have a history of playing hard-
nent, whereas Comcast’s offer ball with cable companies dur-
had been all-stock. ing deal reviews as a way to
The Public Service Commis- extract concessions for their
sion is scheduled to complete constituents.
its review by April 29. Under The Communications Work-
the state regulatory body’s ers of America, the union that
newly expanded powers over represents about 300 Cablevi-
cable—thanks to a law passed sion employees, has a histori-
last year—Altice has to prove cally contentious relationship
Cablevision customers will re- with Cablevision and filed an
ceive better services after the official objection to the Altice Steve and Sandy Miller checked out a new trailer at Cooper’s RV Center in Apollo, Pa., earlier this month. Sales have soared this year.
deal. deal with the FCC. The union
Altice and Cablevision said
in separate statements that
the transaction will deliver
significant customer benefits
also has ties to Mr. de Blasio’s
office, having endorsed him in
the election.
There are other, broader
RV ers—Forest River, Thor Indus-
tries Inc., Jayco Inc. and Win-
nebago Industries Inc.—
account for about 87% of sales
culture of customer satisfac-
tion” at his company.
In the quarter through Oc-
tober, Thor’s sales of towable
tomers are forcing the indus-
try to go that way.”
Finding repair services can
be tricky. On the way to Alaska
and they look forward to a concerns about the deal. Al- Continued from the prior page in North America, according to RVs rose 9.4% from a year ear- last summer, the Bernadens
“fair and open” regulatory tice’s stock has declined 50% ping grows, “you have to be data from Thor. Even so, new lier in units, but just 6.4% in had engine trouble and found
process. “Altice has a strong since September, precipitated aggressive on your pricing,” rivals regularly pop up. Grand dollars, reflecting a lower av- they were 700 miles from the
track record of investment, in- by widespread investor skepti- Mr. Willis said. Design Recreational Vehicles erage price. nearest authorized dealer in
novation and customer service cism about whether it can de- Dealers also are expanding LLC, owned by three former Mr. Martin said the popu- Edmonton, Alberta. They had
in all the communities we liver the $900 million in syn- so they can buy in bulk to get Thor executives, set up shop in larity of inexpensive RVs to turn back and didn’t make it
serve,” said Altice, which ex- ergies promised in the lower prices from manufactur- Middlebury, Ind., three years shows the industry has at- to Alaska.
pects the deal to close in the Cablevision deal. Plus, the to- ers. Many small mom-and-pop ago and already has a signifi- tracted younger buyers, who Some people live in RVs
first half of 2016. tal company will have $45 bil- dealerships are closing or sell- cant presence. often start with cheaper prod- year-round while still working.
In filings, Altice has argued lion in debt by the end of 2016 ing out to dealers with two or Bargain hunters have ucts. Even as the U.S. popula- Lynn MacNaught works as an
that the deal will benefit the if the Cablevision acquisition more locations. Cooper’s is helped knock Thor from its tion ages, the average age of investor-relations consultant
public by bolstering invest- closes, according to ING ana- adding a second location, long-standing perch atop the RV owners has edged down to to Johnson Controls Inc. Her
ment in innovative products, lyst Emmanuel Carlier. nearly tripling its display sales charts. Forest River in- 48 from 49 a decade ago, ac- husband, JC MacNaught, does
improved network speeds and “There’s a lot of skepticism space. Camping World has 115 creased its share of North cording to the Recreation Ve- freelance information-technol-
reliability, and better customer from a lot of longtime media stores in 36 states. American unit sales to about hicle Industry Association, a ogy work. Nearly five years
service. Altice has tended to investors” about Altice’s debt- North American sales of 36% in the first nine months of trade group. ago, they sold their 4,000-
slash costs dramatically fol- fueld cable roll-up strategy, RVs total about $16 billion a 2015 from 31% in the full year Don Clark, CEO of Grand square-foot home near Mil-
lowing acquisitions such as one longtime Cablevision in- year. Prices range from around 2012, while Thor slipped to Design, said buyers increas- waukee and squeezed into a
France’s SFR, resulting in sav- vestor said. $5,000 for low-end, folding 35% from 39%. ingly expect RVs to be as reli- 200-square-foot Keystone
ings that it can reinvest in in- The spread on the Altice- camping trailers to more than Bob Martin, CEO of Thor, able as cars, even though RVs trailer. Now the MacNaughts
frastructure. Cablevision deal had been as $200,000 for higher-end mo- said in an interview that For- have a wider array of equip- winter in Texas and roam the
In October, Altice Chief Ex- wide as 16% earlier this tor homes with engines and est River had gained share be- ment on board that could country in other seasons.
ecutive Dexter Goei met with month. On Tuesday, Cablevi- driving compartments—and cause it is focused on some of break down, from plumbing to Someday they may settle in
City Hall officials including sion shares rose more than upward of $1 million for the the fastest-growing products, flat-screen TVs. “I don’t think Utah, Ms. MacNaught said, but
Ms. Wiley and Deputy Mayor 3%. Altice closed its acquisi- largest and most luxurious lower-priced travel trailers any of us are there yet” in for now “there’s still a boat-
Alicia Glen. At that meeting, tion of U.S. cable company customized models. and motor homes. Forest matching the reliability of load of places we want to go
Altice suggested running high- Suddenlink on Monday. The top four manufactur- River’s Mr. Gaeddert cited “a cars, Mr. Clark said, but “cus- and see.”

SPRINT stra Corp., both large wireless

network operators.
He also has ties to Mr.
Claure, 45, who has described
ended the contract in 2010.
In the fall of 2014, not long
after taking the reins at
Sprint, Mr. Claure hired Mr.
ating Officer, Junichi Mi-
yakawa, refused to meet with
Mr. Trujillo, the people said.
Mr. Miyakawa disagreed with
with Mr. Trujillo earlier this
year to hear his plans, Mr. Son
began working to come up
with an alternative that em-
People close to the situa-
tion say even though much of
Mr. Trujillo’s advice wasn’t put
to use, it helped Mr. Claure get
Continued from the prior page Mr. Trujillo as a mentor. The Trujillo and his team of advis- Mr. Trujillo’s ideas, one of ploys unused airways to boost hands-on advice on running a
Sprint were abandoning plans two met more than a decade ers, which included senior ex- which was to begin shutting network speed and quality. wireless operator. It also cata-
to acquire rival T-Mobile US ago when Mr. Claure was still ecutives who had worked for down a technology that the Within weeks, Mr. Trujillo lyzed Mr. Son’s decision to re-
Inc. Previously, Mr. Claure ran building up his mobile-phone Mr. Trujillo. The consulting company had just spent more and his team left Sprint’s cam- engage with Sprint, they
Brightstar Corp., a company distribution business. agreement was divisive among than three years and billions pus and the consulting deal added. More recently, Mr. Son
he founded in 1997 and built In 2005, just after Mr. Tru- Sprint’s executives. Mr. Truji- of dollars upgrading, these ended in the spring. The helped create an off-balance
into one of the world’s largest jillo became CEO of Telstra, he llo’s team was given keycards people said. Sprint spokesman said the sheet entity to buy Sprint’s
phone-distribution businesses. signed a deal with Brightstar for their own area on the Messers. Miyakawa and Son consulting deal wasn’t ended handset leases, which miti-
Mr. Trujillo, 64 years old, to manage Telstra’s phone-dis- Sprint campus in Overland didn’t respond to requests for early because of disagree- gates one of the carrier’s big-
the lead consultant, has had a tribution. Rival vendors ac- Park, Kan., that other employ- comment. Mr. Trujillo declined ments. Mr. Trujillo and his gest annual expenses.
long career in telecom. He cused Telstra of failing to go ees weren’t allowed to access, to comment this week. team left because they had “Paying all that money to
served as CEO of former re- through an open bidding pro- one of the people said. Mr. Son didn’t agree with finished their work, he said, get [Mr. Son] off the sidelines
gional telephone operator U.S. cess. Both companies said A top network engineer at Mr. Trujillo’s ideas either, ac- and there were other reasons and back into the game,” one
West, French telecom firm Or- their dealings were proper. Mr. SoftBank who now works as cording to people familiar Mr. Son was getting more in- of the people said, “it was
ange SA and Australia’s Tel- Trujillo’s successor at Telstra Sprint’s Technical Chief Oper- with the matter. After meeting volved with Sprint. probably a cheap proposition.”
 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.
Boeing Accepts Quality-Control Penalties
Plane maker agrees to
pay $12 million in first-
of-its-kind settlement
with federal regulators
BY ANDY PASZTOR
AND ROBERT WALL
Boeing Co. has agreed to
pay $12 million in penalties as
part of a sweeping, first-of-its-
kind settlement with federal
regulators mandating tighter
company oversight of suppli-
ers and enhanced quality con-
trols inside its own factories.
The settlement announced
on Tuesday by the Federal Avi-
ation Administration resolves
a total of 13 pending or poten-
tial civil-enforcement cases. It
also subjects the Chicago-
based plane maker to as much
as $24 million in additional
penalties if it fails to complete
the promised manufacturing,
auditing and government re-
porting improvements over
the next five years.
The agreement is unusual
because it raises questions
about how Boeing’s commer-
cial-airplane unit has imple-
mented some of its core quality,
Disney Is in Talks
To Exit Venture
With Univision
BY KEACH HAGEY
AND JOE FLINT
Walt Disney Co. and Univi-
sion are in talks for Disney to
exit Fusion, their joint venture
cable and digital news net-
work aimed at millennials that
has struggled to gain traction
since it launched two years
ago, according to people famil-
iar with the matter.
Both sides are trying to
find a way for Disney to exit
by the end of the year, some of
the people said. While Univi-
sion buying out Disney’s stake
is one of the options being
discussed, it isn’t the only one,
according to some of the peo-
ple. Fusion was launched in
October 2013 as a partnership
between Disney’s ABC News
and Univision, the Spanish
language broadcaster. It was
originally conceived as a chan-
nel targeting English-speaking
Hispanics.
The idea was to give ABC
News more access to the rap-
idly growing Hispanic popula-
tion in the U.S., while giving
Univision—which has seen its
NATI HARNIK/ASSOCIATED PRESS
The food maker is concentrating more on its grocery-store brands.
ConAgra Slim-Down
Perks Up Earnings
BY JULIE JARGON
ConAgra Foods Inc. on
Tuesday reported a decline in
sales, though cost cuts and the
planned sale of its private-label
business helped it exceed Wall
Street’s earnings expectations.
The food maker, known for
brands like Pam cooking spray
and Chef Boyardee canned pas-
tas, has been reshaping its
business as it battles weak de-
mand for many traditional U.S.
packaged foods.
In November, ConAgra
agreed to sell its struggling pri-
vate-label business for $2.7 bil-
lion to TreeHouse Foods Inc.
Weeks later, it said it would
spin off a line of frozen-potato
products, which will rid Con-
Agra of most of its food-service
Wednesday, December 23, 2015 | B3
BUSINESS NEWS
going forward,” Transporta- The agency typically makes
tion Secretary Anthony Foxx public copies of settlement
said in a statement detailing agreements with airlines. An
nearly two dozen specific ar- FAA spokeswoman said the
eas slated for action under the Boeing document wasn’t re-
agreement. Some improve- leased because it contains ex-
ments already are under way. tensive proprietary informa-
In a separate statement, tion that needs to be redacted.
Boeing said the move “fairly Among other things, Boeing
resolves” enforcement issues was tardy in developing infor-
and “will further enhance Boe- mation on fuel-tank safety up-
ing’s self-correcting quality grades for its 747 jumbo and
and compliance systems.” The 757 jetliner families, the FAA
company said “we are actively said. In another case that be-
working on the areas identi- came public previously, the
fied in the agreement.” FAA said the company failed
The broad nature of the to take adequate corrective ac-
DAVID RYDER/BLOOMBERG NEWS
agreement—combined with tion when a supplier provided
the extensive and continuing improper fasteners.
reporting requirements im- Details of the 11 other en-
posed on Boeing—sets it apart forcement matters covered by
from past settlements involv- the agreement weren’t dis-
ing manufacturers. closed by the FAA.
In another unusual twist According to the FAA’s
that deals with Boeing’s inter- summary of the agreement,
A Boeing facility in Everett, Wash. The FAA didn’t claim Boeing’s actions created unsafe conditions. nal-investigation process, the however, Boeing is now obli-
agreement binds the company gated to improve its internal
safety and compliance pro- The FAA didn’t claim Boe- controls to ensure that every- to assign all future noncompli- audits by appointing person-
grams. Some of the alleged ing’s actions created unsafe thing from design to manufac- ance cases to manager-level nel “with appropriate techni-
lapses stretch back several conditions, and the agency has turing to maintenance func- employees. And according to cal expertise to assess the ex-
years—and span various offices proposed significantly larger tions are “operating according the release, Boeing also will tent of regulatory
and product lines. The broad fines against airlines that al- to the highest standards.” have to “meet progressively compliance.” In addition, the
nature of Tuesday’s move indi- legedly violated safety rules. The agreement “is an im- more stringent” requirements FAA said the company must
cates FAA enforcement officials In its announcement, the portant step toward ensuring regarding “the quality and share audit results with the
had alleged or suspected sys- FAA highlighted the impor- that Boeing fully meets all ap- timeliness of its written sub- agency and provide it a sum-
temic shortcomings. tance of internal corporate plicable compliance standards missions to the FAA.” mary of corrective actions.
audience age in recent years—
entree to a younger demo-
graphic. Univision handled the Global perspective. Innovative thinking. Entrepreneurial spirit.
content side of the channel
while Disney was in charge of
We proudly introduce our new Managing Directors who embody
distribution and advertising the culture of Credit Suisse. Their integrity, skills and experience
sales. But Fusion’s program-
ming strategy never gelled and have made them leaders of our global team serving clients in
the network ended up jettison-
ing the original concept in fa- more than 50 countries.
vor of a channel aimed at all
millennials with a focus on
pop culture and tech.
The venture, headed by
Chief Executive Isaac Lee, who
is also Univision’s chief news
and digital officer, started out
ambitiously. The company,
based in Miami, hired a staff
of 200 employees and a slate
of well-known journalists to
work both on camera and on-
line. The strategy was to use
affiliate fees from the cable
network to fund the growth of
an online media network that
could rival the likes of Buzz-
Feed and Vice to gain the at-
tention of millennials.
Fusion is available in 40
million homes and doesn’t
subscribe to Nielsen for televi-
sion ratings.
Meet our new
Managing Directors
Julian Abraham Eileen Crowley Sudhy Kelshiker Jaime Riera
Richard Acoca Vanessa Dager Lucas Kiely James Ritchie
Ranjit Anand Trevor Daley Julia Kingsbury Manuel Rodriguez
Paul Annegarn Darrin Dexter David Klein Ulrich Roth
Ian Arnold Gabriella Diethelm Fer Koch Andrew Rouff
Martin Arregger Thibault Dufour Tibor Kossa Nigel Ruth
Stefan Bangerter Lajos Farkas Baltasar Krause Roland Schaller
Michael Belkin Will Farrant Meenakshi KS Florence Schnydrig Moser
Alain Bernasconi Michael Farthing Chang Kymm Kelsey Scott
Sebastian Best Austin Fernandes Joe Lai Adam Searles
Manoj Bhojwani Frank Fiorito Amelie Laing Ruchir Sharma
Harj Bisal Charles Firth Isabelle Laurin Adam Shukovsky
Martin Blanquart Jonathan Fletcher Jon Levin Craig Siegenthaler
Gonzalo Borja Paulo Frade Matthew Lewisman Andrew Simon
Jean-Marc Botteri Markus Frei Alison Longster Nomita Singh
Marco Bozzolan Bernard Fung Robert Lucenti Edward Soltys
Ulrich Brandt-Pollmann Raffael Gasser Andrew Luscombe Arvind Sriram
Matias Brechner Rolf Gätzi Scott Mahoney Georg Stillhart
Christophe Bridoux Mark Gerber Gideon Margo Parks Strobridge
Philip Bruno Eugene Gilerson Carlos Marque Amar Sujanani
Lewis Burnett David Goldenberg Arif Merali Uma Surkund
Marc Bussmann Anthony Gordon Ted Michaels Vincent Tang
Adriano Cammarata
Luca Capriotti
Philip Carr
Manoo Halati
Claude Harbonn
Christopher Harris
Simon Morris
Daniel Muff
Christophe Müller
Harsi Thethi
Leong Chye Tho
Simon Thwaites
business and enable it to focus
Christine Casale Heinz Hasler Richard Myers Darryl Tidman
on its grocery-store brands.
In the quarter ended Nov. Enzo Castiglione Warren Hastings Yoshitaka Nagakura Jorge Torea
29, ConAgra posted a profit of Sylvio Castro Ajit Hebbar Barbara Nottebohm Alex Wade
$154.9 million, or 35 cents a Kristian Ceko Damian Hodel Aaron Oh Julie Wan
share, up from $10 million, or Wing Chan Brian Hurdal Pedro-Luis Oliver Payarols Philipp Wehle
two cents a share, a year ear- Jon Child Marco Jäggi Madthav Patki Dick Wei
lier. Profit in the prior-year pe- Allan Chu Peter Janney David Patten Patrick Wilson
riod was weighed down by a John Chung Coley Jellinghaus Lyndon Pereira Jörg Witmer
$203 million loss from discon- Daniel Claster Pankaj Kapoor Elmira Phee Eileen Wu
tinued operations.
Garry Collins Steven Karpel Felipe Portillo Victoria Wu
On an adjusted basis, which
includes a benefit related to the Constantine Contopoulos Farhan Kazmi Ashish Rao Lionel Yoong
sale of ConAgra’s private-label Arun Cronin Stuart Keelan Donald Rice Paul Zajac
business, per-share earnings
rose to 71 cents from 61 cents a
year earlier. Analysts polled by Promotions effective January 1, 2016
Thomson Reuters had forecast Copyright © 2015 Credit Suisse Group AG and/or its affiliated companies. All rights reserved.
60 cents a share. Revenue fell
1.4% to $3.09 billion, below an-
alyst forecasts for $3.34 billion.
ConAgra shares rose 1.1% to
$41.43 in New York trading.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4 | Wednesday, December 23, 2015
JOE RAEDLE/GETTY IMAGES
A handler sorted mail at a Miami distribution center last week. USPS hired seasonal workers to deliver more than once on some routes.
Post Office’s Share Surges
U.S. Postal Service’s
holiday plans are part
of efforts to compete
with dominant rivals
BY LAURA STEVENS
This holiday season, the
letter carriers for the U.S.
Postal Service have been bus-
ier than an army of elves, op-
erating practically 24/7 to try
to take a significant share of a
record-breaking online shop-
ping season.
So far, USPS is on track to
scale a new high in holiday de-
liveries, as its volume is up
more than 15% compared with
a year ago and is forecast to
reach more than 600 million
packages between Black Friday
and New Year’s Eve.
Based on that number, the
agency’s market share of holi-
day deliveries this year will in-
crease to 40% from last year’s
35%, as it continues to elbow
its way into an e-commerce
market long dominated by
United Parcel Service Inc.
and FedEx Corp.
“We’re putting more pres-
sure on the organization to
grow the business and to look
at opportunities to continue to
grow,” said Postmaster Gen-
eral Megan Brennan. “And I
think given the pace of inno-
vation and what we’ve demon-
strated in terms of our capa-
bility, we’re well positioned.”
The Postal Service also has
Business
Watch
ABERCROMBIE & FITCH
Retailer Names
Merchandising Chief
Abercrombie & Fitch Co. on
Tuesday elevated Fran Horowitz,
the head of its Hollister brand,
to the new role of merchandis-
ing chief and announced the de-
parture of another top executive.
Christos Angelides, the re-
tailer’s brand president since Oc-
tober 2014, has left the com-
pany, Abercrombie said. With Mr.
Angelides’s departure, Ms. Horo-
witz will now assume responsi-
bility for all of Abercrombie’s
brands, effective immediately.
She has held executive and mer-
chandising roles at Ann Inc., Ex-
press Inc. and Bloomingdales.
Mr. Angelides and Ms. Horo-
witz have been in contention for
the chief executive role at Aber-
crombie, which has been vacant
since late 2014.
Ms. Horowitz has won high
marks due to her performance
results and her leadership style,
one retail-industry recruiter said.
—Chelsey Dulaney
and Joann S. Lublin
PANDORA MEDIA
Agreement Reached
With ASCAP, BMI
Internet radio company Pan-
dora Media Inc. has struck deals
with the country’s two biggest
performing-rights groups to play
their combined 20 million songs
for several years, after years of
fighting with both over royalty
rates in federal court.
Until now, Pandora had li-
censed the catalogs of both
groups—the American Society of
Composers, Authors and Pub-
lishers, and Broadcast Music
Inc.— with the permission of the
Holiday Shipping
Number of packages delivered
during the holiday season.
PCT. CHG +10%
2015* 630 million
2014 572m
+15%
618m†
537m
+12%
317m
282m
*Forecasts †WSJ estimate based on a 15%
projected increase over 2014
Source: the companies
THE WALL STREET JOURNAL.
taken several steps to prepare
for this peak holiday season,
including deploying additional
package-sorting equipment.
Carriers and post offices are
equipped with more than
200,000 blue, package-scan-
ning devices to improve track-
ing data.
It has hired seasonal work-
ers—about 30,000 this year—
along with its own employees
to increase the number of de-
livery shifts in some areas to
three a day from one.
And it is running the equiv-
alent of about 25,000 routes
on Sunday, up from 4,000 on a
nonpeak Sunday. UPS and
FedEx typically don’t deliver
on Sundays.
federal government, paying rates
determined in “rate court,” a part
of the U.S. District Court in
Manhattan that sets music roy-
alty fees when the parties in-
volved can’t agree.
Pandora sued ASCAP in 2012,
asking the court to lower the
rates it must pay ASCAP’s pub-
lishers and songwriters, while BMI
sued Pandora in 2013, asking the
court to raise the rates Pandora
pays BMI’s members. A federal
judge granted BMI’s rate-rise re-
quest earlier this year, and Pan-
dora appealed. But now Pandora
is withdrawing that appeal as part
of its new licensing agreements.
Pandora, ASCAP and BMI de-
clined to share the specific deal
terms, but said in a joint state-
ment that the deals “allow both
ASCAP and BMI to further their
goal of delivering improved per-
formance royalties for their song-
writers and publishers, while Pan-
dora will benefit from greater rate
certainty and the ability to add
new flexibility to the company’s
product offering over time.”
—Hannah Karp
CABELA’S
Trinity Church Urges
Limit on Firearms
A small shareholder in Ca-
bela’s Inc. wants the outdoor-
gear retailer to stop selling cer-
tain high-capacity firearms, a
move that continues to shine a
spotlight the highly politicized is-
sue of gun control.
New York’s historic Trinity
Wall Street church, which earlier
raised a similar complaint at
Wal-Mart Stores Inc., said it filed
a shareholder resolution to be
voted on at Cabela’s annual
meeting next year. The church
wants Cabela’s directors to
adopt a policy barring the pri-
vate sale of firearms that can
fire more than eight rounds
without reloading.
Cabela’s, which sells hunting,
fishing and camping equipment,
didn’t return calls for com-
ment Tuesday.
—Joann S. Lublin
BUSINESS NEWS
“That ability to deliver on
Sundays takes tremendous
pressure off the week,” Ms.
Brennan said. “That has cer-
tainly been a game changer in
our ability to keep the net-
work fluid.”
The Postal Service’s ambi-
tious holiday plans are just the
latest in a series of efforts to
compete with UPS and FedEx
in the battle for online ship-
ping. But the efforts have been
costly since its aging network
was built for letters, not pack-
ages. Compensation expenses
increased 2.3% in fiscal 2015
to $35.9 billion, in part due to
growth in packages, the
agency said.
In September, the USPS re-
quested permission to raise
prices on its lightweight cate-
gory, last-mile packages by
23.5%, because it was only
making about a penny per
package on those deliveries.
Ms. Brennan acknowledged
that it is a challenge to bal-
ance the workload associated
with packages with the costs.
She said the agency is working
to manage overall expenses
and expects to present good
numbers for the quarter.
“As a general rule, anytime
the Post Office takes on more
business, especially during
peak with all those extra costs,
the profitability goes way
down,” says Keith Byrd, a
partner at shipping consul-
tancy Transportation Impact.
A typical mail truck can
hold an average of about 70
YouTube Says T-Mobile Throttling Its Traffic
BY JOHN D. MCKINNON
AND THOMAS GRYTA
YouTube said T-Mobile US
Inc. is interfering with its
video traffic, raising a new is-
sue as federal regulators ex-
amine the wireless carrier’s
streaming-video strategy.
T-Mobile recently began of-
fering a program that delivers
video at lower quality in ex-
change for waiving related
data fees. YouTube and its al-
lies say T-Mobile also is low-
ering the quality of video that
isn’t part of the program, in-
cluding YouTube clips.
YouTube, owned by Alpha-
Shell Lowers Budget for Capital Spending
Royal Dutch Shell PLC on
Tuesday cut its planned capital
spending for 2016 by $2 billion,
to $33 billion, continuing to
cope with low oil prices as it
moves to complete its acquisi-
tion of BG Group PLC.
packages, compared with
about 200 for a FedEx or UPS
truck, according to Satish Jin-
del, president of ShipMatrix
Inc. Despite some scattered re-
ports of hiccups, so far its
last-mile delivery service is
coming in at about 99% on-
time, higher than the national
networks of rivals UPS and
FedEx.
The Postal Service pays for
its own way: it doesn’t receive
taxpayer dollars to cover oper-
ating costs, although it is com-
pensated for certain services
and receives a $15 billion
credit line with the U.S. De-
partment of the Treasury. In
November, the agency re-
ported a $5.1 billion loss for
fiscal 2015. Stripping out cer-
tain items including mandated
retiree benefits, it would have
earned $1.2 billion.
The Postal Service in recent
years has started competing
more aggressively for parcel
business as its lucrative busi-
ness—First Class mail—has
declined in the digital age.
It lowered prices last year
on some of its Priority Mail
packages, and most recently
has been testing out same-day
deliveries of groceries, water
and fish.
It also has become a more
attractive option for both
lightweight and bulky pack-
ages, after both UPS and
FedEx started charging by the
size and weight of packages
this year to encourage ship-
pers to use smaller boxes.
bet Inc., said T-Mobile is ef-
fectively throttling, or degrad-
ing, its traffic. “Reducing data
charges can be good for users,
but it doesn’t justify throttling
all video services, especially
without explicit user consent,”
a YouTube spokesman said.
The Federal Communica-
tions Commission’s net-neutral-
ity rules, adopted in February,
are designed to ensure Internet
providers don’t discriminate
against traffic from particular
sources, including throttling a
class of applications.
Binge On, T-Mobile’s free
streaming program, already
has worried some consumer
The Anglo-Dutch oil com-
pany already has taken action
to cut costs and reduce spend-
ing this year by $12 billion.
Tuesday’s announcement
came as Shell published key doc-
uments on its website in prepa-
THE WALL STREET JOURNAL.
Nike’s Profit Up 20%,
Topping Estimates;
Revenue Climbs 4%
BY SARA GERMANO
Nike Inc.’s quarterly profit
jumped 20% as the world’s larg-
est sneaker and sportswear
maker continues to book strong
orders from retailers and ex-
pands its own e-commerce sales.
While the Beaverton, Ore.-
based company beat profit esti-
mates for the 14th straight
quarter, executives cautioned
that gross margins may weaken
slightly in the next period as
Nike works to clear excess in-
ventory in North America. The
company is making way for new
products geared toward next
year’s summer Olympics and
other events, executives said.
Nike posted net income of
$785 million, up from $655
million a year earlier, while
revenue rose 4% to $7.69 bil-
lion for the quarter ended Nov.
30. Excluding currency fluctu-
ations, Nike said revenue rose
12%. Inventories for the period
rose 11% to $4.6 billion, in part
due to higher average prices
and growth in the company’s
direct-to-consumer sales.
World-wide future orders, a
benchmark widely used as ref-
erence for demand for Nike
products, rose 20% excluding
currency effects. Those orders
reflect items scheduled for de-
livery between December 2015
through April 2016.
A Nike store display in Santa Monica, Calif. The company’s
quarterly profit jumped 20% while revenue rose to $7.69 billion.
advocates, who warn the ser-
vice could be the beginning of
attempts to circumvent the
net-neutrality rules. T-Mobile
argues the program is in line
with the regulations, can be
turned off by consumers and
is open to all video providers
that meet its basic technical
requirements.
T-Mobile declined to ad-
dress YouTube’s complaints. In
a statement, the No. 3 U.S.
carrier by subscribers said its
customers “love having free
streaming video that never
hits their data bucket” and
like “both the quality of their
video experience and the com-
ration for a remaining hurdle to
the BG deal: a shareholder vote,
set to take place in January.
Since the deal’s unveiling in
April, some investors have ex-
pressed concerns about its cost
amid tumbling oil prices—an is-
Executives said the com-
pany is faced with clearing ex-
cess inventory in part because
of “proactive” delays on prod-
uct shipments from the West
Coast port slowdown earlier
this year, and will likely chan-
nel those products through its
existing fleet of outlet stores.
Earlier this fall, the com-
pany announced plans to more
than double its direct-to-con-
sumer sales from $6.6 billion
to $16 billion by 2020. On
Nike’s earnings call Tuesday,
brand President Trevor Ed-
wards said sales on Nike.com
rose more than 50% in the
most recent quarter. The com-
pany started online sales in
Canada, Switzerland and Nor-
way, during the three months
ended in November with plans
to do the same in Mexico, Tur-
key and Chile in the current
period.
Aside from the word of cau-
tion on third-quarter gross
margins, Nike reaffirmed guid-
ance for the year. Shares of
Nike closed at $131.85 on Tues-
day and rose about 2% in af-
ter-market trading. Nike is the
best performing stock in the
Dow Jones Industrial Average,
up about 38% in total return so
far this year, according to the
Dow Jones Market Data Group.
—Tess Stynes
contributed to this article.
REUTERS
plete control they have.”
T-Mobile said last month
that 24 providers, including
Netflix Inc. and Time Warner
Inc.’s HBO, are part of Binge
On. But the service doesn’t yet
include YouTube, which ac-
counts for almost a fifth of all
cellular traffic in North Amer-
ica, according to data provider
Sandvine.
Last week, FCC Chairman
Tom Wheeler said the agency
sent letters to T-Mobile, Com-
cast Corp. and AT&T Inc. to
get more information about
new services they are offering.
An FCC spokesperson de-
clined to comment on Tuesday.
GEORGE OSODI/BLOOMBERG NEWS
sue Shell’s management has
been at pains to address. Shell
valued the cash-and-share deal
at $53 billion as of Dec. 18, down
from the $70 billion price tag
when it was first announced.
—Sarah Kent
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, December 23, 2015 | B5

TECHNOLOGY @wsjd | wsjd.com

Google Plans Smarter Message App Kim Dotcom Is Ruled

Company is chasing
rivals, who already
offer integrated,
mobile services
BY ALISTAIR BARR
Google is building a new
mobile-messaging service that
taps its artificial intelligence
know-how and so-called chat-
bot technology to try to catch
up with rivals including Face-
book Inc. in the fast-growing
arena, according to people fa-
miliar with the matter.
Messaging services are
among the world’s most popular
mobile apps, with more than
two billion users, according to
Portio Research Ltd. But
Google’s two messaging ser-
vices—Hangouts and Messen-
ger—trail far behind Facebook’s
WhatsApp and Messenger and
Tencent Holdings Ltd.’s WeChat,
the most popular messaging app
in China. Some services are add-
ing other capabilities—WeChat,
for instance, lets users shop, pay
bills and book appointments.
For its new service, Google,
a unit of Alphabet Inc., plans
to integrate chatbots, software
programs that answer ques-
tions inside a messaging app,
the people familiar with the
clined to comment.
Google veteran Nick Fox has
been leading a team working
on the new service for at least
a year, according to people fa-
miliar with the matter. Tech
news website The Information
reported his new role as vice
president of communications
products earlier this year.
In October, Mr. Fox offered
to buy 200 Labs Inc., a small
startup that builds chatbots,
but the firm declined the offer,
according to two people famil-
iar with the situation.
200 Labs developed a mar-
ketplace and rating service for
chatbots on Telegram, a mes-
saging app that offers hundreds
of chatbots, devoted to subjects
ASSOCIATED PRESS
such as the weather, image
search, news and dating. 200
Labs is working on technology
that will choose the best chat-
bot to respond to a request.
Google Vice President Nick Fox, shown in April, is said to be Google is pursuing a similar
leading work on the new mobile-messaging service. goal with its messaging ser-
vice, the people familiar with
matter said. Users will be able approach will be more suc- the plan said.
to text friends or a chatbot, cessful than the company’s Instead of typing a query
which will scour the Web and prior efforts. Users typically into Google’s search engine, us-
other sources for information join messaging services be- ers will send questions as text
to answer a question, those cause they know other users; messages, to which chatbots
people said. It is unclear when Google has struggled to create will respond. Google likely will
Google will launch the service, such network effects with both allow outside developers to
or what it will be called. Also Hangouts and Messenger. build chatbots to run on the ser-
in doubt is whether the new A Google spokeswoman de- vice, one of the people said.
Eligible for Extradition
BY KATE GEENTY
WELLINGTON, New Zea-
land—Internet entrepreneur
Kim Dotcom and three co-de-
fendants are eligible to be ex-
tradited to the U.S. to face
charges including criminal
copyright infringement, money
laundering and conspiracy to
commit racketeering, a New
Zealand court ruled on
Wednesday.
Speaking to media outside
court Mr. Dotcom said
Wednesday’s decision wasn't
the last word on the matter.
“We will go through the whole
process until the very end.”
Mr. Dotcom and fellow de-
fendants Finn Batato, Mathias
Ortmann and Bram van der
Kolk have already lodged ap-
peals, which will be heard in
the High Court.
His New Zealand-based law-
yer Ron Mansfield told The
Wall Street Journal that Mr.
Dotcom is positive he can suc-
ceed in the higher courts in
New Zealand. “We’ve just got
through the starter’s gates, we
haven’t lost the race. We re-
main pretty confident.”
However, Mr. Mansfield
said the appeals process could
drag on for several years.
“I think that if we were suc-
cessful for example in the
of our country.”
Under New Zealand’s Extra-
dition Act, once all court action
has been exhausted the final
decision on whether the men
will be extradited lies with Jus-
tice Minister Amy Adams.
The four men face the
charges in the U.S. due to their
involvement in file-sharing
site Megaupload. The four men
have consistently maintained
their innocence, and have car-
ried out a protracted legal
fight to prevent extradition.
The U.S. Justice Depart-
ment’s case alleges that the
four men knew Megaupload
was reproducing and distribut-
ing copyrighted works and
failed to delete the infringing
files or terminate access to
them. The company behind the
“cyberlocker” site had long
been considered by the enter-
tainment industry and prosecu-
tors to be a leading conduit for
pirated content.
During the hearing, which
wrapped up almost a month
ago, the defense argued that
the prosecution had to show
there was reason to believe a
criminal offense may have
been committed under both
U.S. and New Zealand law to
grant an extradition.
Mr. Mansfield said he
thinks the District Court got

Europe, U.S. Split on Aircraft Cybersecurity

BY ANDY PASZTOR
U.S. and European aviation
authorities are at odds over one
of the industry’s hot-button is-
sues: devising ways to protect
an array of aircraft from poten-
tial cyberattacks.
Regulators and committees
of experts on both sides of the
Atlantic are considering beefing
up standards for onboard elec-
tronics to shield airliners, busi-
ness jets and small private
planes from such threats.
There is general agreement
on updating software and imple-
High Court, then the United the legal analysis wrong as to
States would appeal to the whether there is a proper legal
Court of Appeal, and vice foundation to say an offense
versa. I think today if the has been committed in the U.S.
menting future safeguards for tems for general aviation and tails said friction stems from United States had lost then “We say there is not, let alone
large commercial planes, includ- some business aircraft in Europe. different approaches by the they would be appealing.” one here in New Zealand.”
ing enhanced separation of cabin Details of the trans-Atlantic FAA and the European Aviation Mr. Mansfield said the next “We’re still confident that
entertainment and passenger In- tiff, which haven’t been re- Safety Agency to deal with air- step would be an appeal to the following a rigorous review of
ternet access from any safety-re- ported before, emerged during craft having fewer than 19 Court of Appeal, followed by this decision we can get the
lated systems. But people in- a meeting of U.S. industry and seats. EASA and European advi- New Zealand’s highest court, High Court to determine that
volved say the two sides remain government experts in Wash- sory groups want to subject all the Supreme Court—which is the District Court is wrong on
divided over the best approach ington last week. At one point, aircraft essentially to the same where he believes the case will a simple legal analysis,” said
and extent of testing necessary Richard Jennings, the U.S. Fed- cybersecurity standards. end up. Mr. Mansfield.
to ensure integrity of software eral Aviation Administration’s By contrast, the FAA and the “This is a case that is des- Mr. Dotcom, a German-born
and hardware of electronics on main representative to RTCA larger U.S. private aircraft indus- tined for the Supreme Court businessman who changed his
smaller models. Unless the issue Inc., the U.S. standard-setting try believe tougher assurance and we knew that. Both sides name from Kim Schmitz, rose
is resolved relatively quickly, in- organization working on the is- requirements should be imposed knew that the decision today to prominence in New Zea-
dustry officials worry U.S. sup- sue, said: “We may just have to on airlines that carry large num- wasn’t going to have much im- land after his arrest in January
pliers could face major chal- agree to disagree.” Mr. Jennings bers of passengers, versus a sin- pact on the overall outcome of 2012 at the behest of U.S. au-
lenges selling avionics and didn’t elaborate. gle-engine, propeller-powered the case. It will be rigorously thorities. He was released on
various flight-management sys- Others familiar with the de- plane used for private flying. reviewed in the higher courts bail in February of that year.

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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
B6 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
Season’s Greetings Mean Corporate Stress
From red cups at
Starbucks to mall
Santas, companies
often can draw fire
BY RACHEL FEINTZEIG
Can companies win Christ-
mas?
It sure doesn’t feel that
way. With businesses like
Starbucks Corp. and Coca-
Cola Co. facing customer com-
plaints and social-media fu-
ror over coffee cups and
commercials, the holiday sea-
son has become increasingly
treacherous territory, corpo-
rate reputation experts say.
Even the corporate holiday
card has become a high-stakes
ordeal, requiring months of
preparation and vetting.
Controversies like the one
over Starbucks’ decision to use
plain red coffee cups free of
holiday symbols illustrate how
consumers view brands as
friends, and expect companies
to share their values, says
Deborah Small, a professor of
marketing and psychology at
the University of Pennsylva-
nia’s Wharton School.
“When it comes to the holi-
days, that’s very touchy,” she
says.
The dynamic leaves compa-
nies struggling to appear in-
clusive without riling those
who feel political correctness
has quashed their traditions.
They risk being too Christ-
massy for some, and not
Christmassy enough for oth-
ers.
When Simon Property
Group Inc., which owns, man-
ages and develops shopping
centers, unveiled a new setting
for Santas at several shopping
centers earlier this year, blow-
back was swift. Shoppers com-
plained on social media that
Santa’s glacier, an all-white,
At Work
The perks of being a soft-
ware engineer in San Francisco
are legendary: wheatgrass shots
and organic meals at the com-
pany cafeteria, beer-driven hack-
athons, private commuter buses,
* * * *
Shoppers complained when Simon Property unveiled new settings for some Santas earlier this year.
modern backdrop violated the
spirit of the season. Simon
quickly removed the glaciers,
which cost tens of thousands
of dollars to design and build,
and hauled out the traditional
settings with Christmas trees.
“It was a mistake, and we
had to correct,” David Contis,
president of Simon’s regional
mall division, told the Char-
lotte Observer newspaper in
North Carolina in November.
“If we lose money, so be it.” A
spokesman for the company
declined to comment further.
Last week, Barclays Bank
PLC sparked Yuletide fury in
the U.K. after posting signs at
bank branches stating that
branches would be closed
Delta Resumes Talks
With Pilots on Contract Career Opportunities
BY DOUG CAMERON
Delta Air Lines Inc. said
NY
CAREERS
from Dec. 25-28 for “bank hol-
idays,” rather than Christmas,
which social-media users lam-
basted as “cowardly” and “po-
litically correct.”
In a statement, a Barclays
spokeswoman said the bank
calls all closures bank holidays
and will continue to refer to
Christmas online and in post-
ers at some branches.
Advertisements can stir an-
ger, too. Microsoft Corp.
sparked the ire of some con-
sumers who noticed that one
version of an ad depicting em-
ployees caroling outside an
Apple Inc. store in New York
omitted a reference to God in
the song lyrics. A spokesman
for Microsoft declined to com-
volving fewer planes.
“It is independent of the
company’s fleet decision,” said
Wednesday, December 23, 2015 | B7
fending individual groups that Managers gave Ms. Huff-
they end up offending every- man an earful about the firm’s
one,” he adds. holiday cards during a visit to
Following the red-cup out- Dechert’s European offices a
cry, a Starbucks executive said few years ago. Lawyers took
the plain-cup design was issue with the “Season’s Greet-
about purity, and not politics. ings” message, noting that
The company stuck with the “Happy Holidays” is preferred
cups, which will remain in cir- in Europe. They also asked for
culation through the season. an electronic version, more
“A brand can’t be every- languages and personalized
thing to everybody,” Ms. Small return addresses on envelopes.
says, adding that people gen- In London, the firm’s manag-
erally have short attention ing partner had samples on
spans for such kerfuffles. hand to show her what he was
“Things go viral really fast and after.
then they die out really fast.” The unexpected feedback
Don’t tell that to the people left Ms. Huffman
tasked with creating corporate “shellshocked”—especially be-
holiday greetings. cause her trip took place in
In this realm, land mines the spring.
are more plentiful than snow- Years ago, Claudia Schiep-
men. Seasonal scenes could be ers, the chief marketing officer
read as insensitive to the at Greystone & Co., a real-es-
Southern Hemisphere, where tate lender, developer and ad-
December is a summer month. visory firm, approved a card
The colors red or green have design with a winter wonder-
questionable connotations in land and a Christmas tree.
some regions. Colleagues upbraided Ms.
“It’s the project no one Schiepers, who worked for a
EDMUND J COPPA
wants to do,” says one senior tech company at the time.
leader at a global marketing- “I think I learned my les-
services firm, who didn’t want son,” she says. She now avoids
to speak publicly about holi- red and green motifs, sticks to
day-card efforts. abstract images and makes
Beth Huffman, the commu- sure to say “happy holidays.”
ment. And Coke, well known nications director at law firm At least one business is
for its Christmas marketing Dechert LLP, says the cards having fun with holiday hot
campaigns, pulled a holiday ad the firm sends to more than buttons. Law firm Akin Gump
in Mexico earlier this month, 40,000 recipients annually are Strauss Hauer & Feld LLP’s
although the Christmas mes- “one of the things that makes video card this year depicts a
sage wasn’t the problem— me the most nervous all year.” holiday-card committee in
viewers took issue with the Preparations began in Feb- which a compliance lawyer
ad’s depiction of light-skinned ruary, she says, and involved lays out limits: the word
youth bringing Cokes and three brainstorming sessions “lights” can be used, but not
Christmas décor to indigenous and vetting of the designs by in connection with the word
people. The company ulti- the firm’s CEO. This year “holiday.” Menorahs, stockings
mately removed the ad from Dechert has two printed and and dreidels are banned. Wise
YouTube and apologized. two e-card designs, including men are allowed only if ac-
Companies may feel they a New Year’s option. For a few companied by an equivalent
have no choice but to be bor- years, Ms. Huffman had greet- number of wise women.
ing, says Paul Argenti, a pro- ings translated into 14 lan- The committee eventually
fessor of corporate communi- guages, including Flemish and comes up with “a cutting-
cation at Dartmouth College’s Arabic, but now allows em- edge, fully compliant, multi-
Tuck School of Business. ployees to personalize the audience card with an original
“The pressure is so great greetings in whatever lan- and relevant message”: A sin-
among companies to avoid of- guage they choose. gle smiley-face emoji.
ADVERTISEMENT
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS CAREERS CAREERS
and six-figure salaries. Tuesday that it had resumed a spokeswoman for Delta’s pi-   '    
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may be lower in places like At- stakeholders. lots who cast ballots, 65% voted   : B          8   ) 
    
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paychecks. That’s the conclusion after members rejected a three- begin negotiations again,” the       8           $
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of a new analysis from Hired, a year contract that contained big airline said in a statement Tues-  8  '  '< ( )2 '*         $   ) 
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San Francisco-based firm that pay raises, just as other carriers day. “We will further review the    ' '<     ) *   ' '&  8    
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salaries offered through its sys- new deals with flight crew. agreement that is good for both  O 8  9     ./  01   !  '      )   8 
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tem, the company looked at av- Delta, the first of the big Delta and its pilots.”   '  ) :+ B    ') 345,50    '   )     
erage pay for a software engi- three U.S. carriers to emerge The rejected deal would   9         )       
from bankruptcy, is a totem for     (     '   
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neer in 11 cities, and found these have raised the average pilot          -7 -7 +  !'  '     8    
sought-after workers earn, on the industry’s efforts to break monthly pay by $3,500 by Jan-           (          '  =   F      )  
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earning $96,000 there is equiva- especially as low oil prices pro- have an industry-leading plan   8    ' G  8   ;(  '   8     = '
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than the Bay Area counterpart. boosted earnings, but U.S. net- $2.5 billion, and 20% of any
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city in the analysis except New mered by investors concerned year, that equated to a 16.6% )2    8   )2  '  " 9  8 '  9 ? ' (       1 ' (  )
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UAW Files Against VW

  - ) 7          *     ) 8   1A0,/.@
and other high-tech workers by       
  #       8      JD - K 8  J  9K - 
touting small-city virtues such '  :    - ) 7 -7         9   8    ;B;
      (       : "  ! 

Over New Bargaining Unit

as quality of life, lower housing    '    F ;  # : ;"     , ' 

costs and short commutes.     ! > : "      ( 4 )  <   -7 -7 4     
    #        )   < "  M   4  G      '  8
Still, the report showed one ;(   *    <
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clear benefit of working in San BY MIKE RAMSEY the entire plant failed to pass. $   "    0 '           = (  !" 8    N  !     
Francisco: Engineers who start The union, which was  '   (   & '*  +" (      ==   @ '    ( ;( ) )2
         : 8  ;(    *
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out there command higher of- The United Auto Workers formed through a vote com-       ;(   8 '*     8   = ' ) )2 H=:F  D D6 '
fers when they relocate to other union filed an unfair labor prac- pleted on Dec. 4, was certi-       (  >22 9  8 ' 6F 8 4  < D 8 D,;;   <
           9 ? 5@A5,.1%1 ;B; ; :2#2
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cities. People who leave San tices charge on Monday against fied by the NLRB on Dec. 15.  '  < )  :        D+:  8  # )<   = 
Francisco for a job in Chicago, Volkswagen AG, saying the The union had said it would   8  =  : 
   $=

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for example, get an average of- auto maker declined to negoti- immediately begin negotiat-        <  ,AA1 D+ :  8            = 8 4 
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fer of $125,000, a bump of
$17,000 compared to the aver-
ate on a labor contract with a
newly formed bargaining unit.
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ing efforts.    (    
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age engineer salary in that Mid- Volkswagen previously said election, we were hopeful that '  )))2     '
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west city. In fact, in every city it would contest the legality of the company would accept the   -7 -7   ) ' 8     5@A5,/A// ;B; ; :2#2
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   ') 3:5,5@       8          D+: 
except San Francisco, those who the union, which represents results and recommit to the  )2      8  =  :
   
relocate earn a premium, with about 160 of the 1,450 blue- principles of social responsi-  !" : " 
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the biggest boost going to peo-
ple who are willing to move to
collar workers at the Chatta-
nooga, Tenn., plant, by appeal-
bility that made Volkswagen a
respected global brand. In- THEMART
ADVERTISE TODAY
 ) $,& ' (  '    
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San Diego. Professionals making
the reverse relocation—from an-
( ,05I%  #  /%5,0
other city to San Francisco—ac-
ing to the National Labor
Relations Board. That appeal
hasn’t yet been filed. Volks-
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stead, Volkswagen has refused !"    )  B  '  
to come to the bargaining ta- (800) 366-3975    " 8    <             > 
sales.mart@wsj.com   ( )2 H+    '  +B
ble in violation of federal law,” ; ' : B   ;(  4 > 
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tually earn less than local engi- wagen contends the small bar- UAW Secretary-Treasurer Gary Place an ad using 6 ' $- ) 7 -7&  
+)  + = B-; 8
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the self-service option at: '  >22))) '2
neers, suggesting that Bay Area gaining unit, formed from Casteel said in a statement. wsj.com/classifieds
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employers believe the very best skilled tradesmen, shouldn’t A Volkswagen spokesman © 2015 Dow Jones & Company, Inc.   1A0,II.  JD - K 8  J  <   *     < 8  
engineers are all already there. have bargaining powers. A declined to comment, saying it All Rights Reserved. 9K -     ;B; *
—Lauren Weber February 2014 union vote by hadn’t seen the complaint.
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
B8 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.

BUSINESS NEWS

YETI Columbia House Seeks Revival With Vinyl

Continued from page B1 Storied mail-order Vinyl Countdown
formation that physical stores
often face. Bass Pro Shops re- brand aims to turn
cently started allowing online the tables on music
shoppers to search store inven-
tory through its website to pin- industry’s digital drive
point which outlets have what
shoppers need, but the Spring- BY TOM CORRIGAN
field, Mo.,-based company isn’t
making the Yeti cup searchable. Columbia House, the mail-
“We are afraid the informa- order brand steeped in music
tion will be wrong,” because the history, is staging a comeback
mug has been selling so quickly that it hopes will turn the ta-
customers could travel long dis- bles on the music industry’s
tances only to find it has sold 15-year digital drive. Adele’s ‘25,’ tops the list.
out when they get to the store, John Lippman, who bought Amazon’s best selling
says Stan Lippelman, vice presi- the onetime music giant out of albums on vinyl*
dent of marketing for Bass Pro. bankruptcy this month, says he
Demand for the mug
started to build during the
wants to restore the brand to
its vinyl roots, betting that the 1 25
Adele
WIREIMAGE FOR LIONSGATE

summer, so the company last decade’s wave of digitiza-

boosted production. That,
however, was insufficient. “We
tion won’t eradicate vestiges of
music’s more tangible past.
2 Kind of Blue
Miles Davis
certainly are not close to what
the market potential” is, says
“You can see a yearning and
an interest to try a new for- 3 Back to Black
Amy Winehouse
Corey Maynard, Yeti’s vice mat,” he said, referring to mil-
president of marketing. lennials’ interest in listening 4 21
Adele
The privately-held company to the records their parents For decades Columbia House, which traces its origins to the 1950s, was synonymous with music sales.
declined to discuss sales and
didn’t respond to requests for
may once have spun.
Columbia House, which Inc., into chapter 11 protection DJs,” says Sharon Bechor, who lar-culture professor at Syra-
5 Legend
Bob Marley

6
comment on production ca- traces its origins to the 1950s in August with assets of just $2 owns Rock and Soul DJ Equip- cuse University, says while Blurryface
pacity levels. and the Columbia Records la- million and debts of $63 million. ment & Records in Manhattan. there is a tendency to want to Twenty One Pilots
Yeti mostly stopped selling bel, became hugely popular by Attempts to sell Columbia “Now everyone does.” physically touch the things that
the cups through its own web-
site about six months ago, a
enticing music fans to sub-
scribe to its mail-order club,
House at a bankruptcy auction
were delayed several times
For some, albums—particu-
larly those that have artistic
we like, vinyl sales are likely to
remain a specialized market,
7 A Charlie Brown
Christmas Vince Guaraldi
more profitable sale than via a offering stacks of CDs, vinyl and, when no rival bidders covers and occasional poster much like film cameras.
retailer to prioritize those re- records, 8-track and cassette emerged, Mr. Lippman offered inserts—are a visible form of It isn’t clear that the Co- 8 Hozier
Hozier
lationships, says Mr. Maynard. tapes for as little as a penny. about $1.5 million, including self-expression, one that can lumbia House brand will catch
Ace Hardware Corp. has been
selling the cups only in stores
For decades the brand was
synonymous with music sales,
$425,000 in cash, to buy the
remnants of the business out
be curated, shared or plas-
tered on dorm room walls.
on with millennials. According
to statistics compiled for Mr.
9 Sgt. Pepper's Lonely
Hearts Club Band
for weeks because supply is so but the advent of digital me- of bankruptcy and keep the And then there’s the sound. Lippman by an outside re- The Beatles
limited, says Craig Hansen, se- dia, Apple’s iTunes store and storied brand alive. Many audiophiles maintain re- search firm, more than 70% of
nior merchant at the Oak Brook,
Ill.-based company. As a chain
web-streaming services has
since threatened CDs and
Mr. Lippman says several
factors have converged to pro-
cords have a warmer sound.
“With digital downloads and
those 35 and older have heard
of the Columbia House brand,
10 Vessel
Twenty One Pilots
of independent owners, he says, other physical formats. pel vinyl’s resurgence, even as CDs, you just don’t get the bass but only a third of millennials, *Calculated hourly, as of 3 p.m. Dec. 22
“we want it in the store’s hands Columbia House’s revenue music consumption has moved that you get with a record,” says ages 18 to 34, have. Sources: the company (sales);
Associated Press (photo)
where they can…take care of peaked in 1996 at about $1.4 away from physical formats to Shayne Sealy, a Bronx-based DJ, Mr. Lippman says he plans
their local markets.” billion. The company changed more convenient digital plat- who says he began working to use social media to attract THE WALL STREET JOURNAL.
While Yeti coolers have long hands several times during the forms. “Convenience is not the with vinyl records in 1979. millennials. And he will em-
been popular with fishing and past decade, its revenue de- end-all be-all in experiencing Mr. Lippman, who spent brace the membership model House won’t be an “a la carte
hunting enthusiasts, the mug clining year by year until it media,” said the 41-year-old. several years at Lehman on which Columbia House be- supermarket,” Mr. Lippman
has made the Yeti brand accessi- abandoned the music business Sales of vinyl records rose Brothers working in mergers came a household name, tai- says. The service will offer
ble to more consumers who can altogether in 2010. A DVD club 52% in the first half of 2015, and acquisitions and private loring it for e-commerce. subscribers some ability to
spend a nominal amount on one remained, with about 110,000 according to the Recording In- equity, says the increase in vi- Vinyl is available in some choose the records, genres of
of its products, retailers say. The members. But DVD sales have dustry Association of America. nyl sales is evidence of a brick-and-mortar stores, as music and possibly other types
cup hits a giftable sweet spot, fallen as Amazon.com Inc., The value of those sales now larger trend in media con- well as from some online re- of media they receive, he says.
says Steve Messana, co-owner of Netflix Inc. and other movie- accounts for about a third of sumption. “It’s not that digiti- tailers, but Mr. Lippman says “Our goal is to give consumers
Austin Canoe & Kayak in Texas. and television-streaming ser- shipments of physical music zation is going away,” he says. the market is largely under- the ability to select music that
It is “$40 dollars for something vices have grown in popularity. formats. Vinyl, however, still “I think there is a sense among served online. “For a category they will love,” he adds.
you are going to drink water out Mr. Lippman first took con- makes up a fraction, about 7%, a lot of people of looking to that is meaningful and grow- Ms. Bechor says she would
of—90% of the time at your trol of the brand three years of the overall music market. get back to the broader experi- ing rapidly, you don’t see a welcome a Columbia House re-
desk. But as a Christmas gift it’s ago. He put Columbia House’s “It used to be that people ence of engaging with media.” whole lot of choice,” he notes. naissance. “We support the vi-
not too expensive.” parent, Filmed Entertainment who were buying records were Robert Thompson, a popu- The revamped Columbia nyl culture...I’m rooting for it.”

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 13 69 Santa’s aid 27 Region of ancient
20s appended in this Mesopotamia
Calgary
0s 14 15 16
Vancouve
Vancouver puzzle’s longest 28 Herder of
10s 10s
Seattle p
Winnipeg 17 18 19 answers 47-Across
20s 30s 20s
40s Down 29 Flight feature
P d
Portland t
Montreal 30s 20 21 22
Eugene
Helena
20s Ottawa 1 One of those 31 Poppycock
Billings A g t
Augusta 40s 23 24 “with their eyes
Bismarckk
Boise pls./St.
s / Paul
Mpls./St. Pau T
Toronto
t
Boston 50s
Albany
A b
bany all aglow” in a 32 Ad character
25 26 27 28 29 30 31 32 33 with a necklace
P Milwaukeek
Buffalo tf d
Hartford 60s seasonal song
Pierre t
Detroit New YYorkk of daisies
Sioux FFalls C l d
Cleveland 34 35 36 37
Reno Lake City
Salt Lake Cit
C 30s Des es Moines
Ch
Chicago
Pitt b h Ph
Pittsburgh
70s 2 Openly confess
Cheyenne hil d lphi
Philadelphia
80s 33 Critic, at times
Sacramento
Omaha h
di p
Indianapolis 38 39 40 41 3 Holiday
Denver h g on D.C.
Washington DC 90s travelers? 36 “So that’s how
an Francisco
San Topek
Topeka Spring
p
Springfield d Charleston
C l d
Colorado
Charles
h 42 43 44 it is”
Las 10s Springs 40s Kansas St.. Louis
Lou L
Lo
Louisville
h
Richmond d 100+ 4 Holly and ivy
Ve
Vegas C y
City l i h
Raleigh 45 46 47 48 49 39 Some
hit
Wichita
h
Nashville 5 1970s teammate sunglasses
A
Ange
Los Angeles 50s Ch l tt
Charlotte
Santaa FFe Memphi
Memphis 50 51 52 of Orr
Ph
h
Phoenix Ab q q
Albuquerque Oklahoma
homa C Cityy C b
Columbia 40 Diana wore one
San Diego 70s Warm Rain
Littlee Rock Atl t
Atlanta 6 Winter break at her wedding
T c
Tucson 60s D ll
Dallas h
Birmingham 53 54 55 56 57 58 59
Jackk
Jackson
Ft. Worth Cold T-storms 7 “Strike the ___ 41 Long-odds bet
El Paso
P 70s b
Mobile Jacksonville 60 61 62 63 and join the
A ti
Austin
Houston Stationary Snow chorus” 46 Flowingly, in
-0s ew
Neww Orleans l d
Orlando 64 65 66 music
80s an Antonio
San A t i Tampa 8 Available
80s Showers Flurries 67 68 69 48 Goose egg
0s Honolulu
l l 80s Miami 9 Fishing nets
A h g
Anchorage 80s 49 Poppycock
70s
Ice 10 Lacking in
ADDITIONS FOR SANTA | By Dan Fisher detail 51 Man of morals
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 24 “O Rei do 47 Scandinavian 11 Hail target 53 Cacao containers
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Pack tight Futebol” grazers 12 Samuel Adams 54 Euclid setting
Omaha 44 28 r 40 28 sn Frankfurt 52 40 c 53 43 pc
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice 25 Yule revelries 50 Home buyer’s White Christmas 55 White Christmas
Orlando 85 69 pc 85 68 pc Geneva 52 35 pc 49 37 pc 5 Spirit of the age
Today Tomorrow Philadelphia 67 65 r 77 59 t Havana 87 68 s 87 69 s concern and the like necessity
City Hi Lo W Hi Lo W Phoenix 65 50 pc 66 48 sh Hong Kong 74 67 c 74 61 c 10 “...following 30 “Sons of
Anchorage 15 7 pc 10 6 pc Pittsburgh 63 60 r 68 48 sh Istanbul 54 44 pc 55 45 pc yonder ____” Anarchy” creator 52 Many a 13 “God ___ ye 56 Valley
Atlanta 71 67 r 76 66 c Portland, Maine 49 43 pc 60 48 sh Jakarta 91 74 c 88 75 t Kurt Christmas tree merry, 57 11-Down
14 Football
Austin 79 48 s 79 58 pc Portland, Ore. 46 36 r 43 35 sn Jerusalem 54 36 s 53 36 s
34 Soccer player 53 Participant in an gentlemen” competitor
Baltimore 66 61 r 76 59 t Sacramento 56 39 c 53 34 r Johannesburg 88 63 s 91 61 pc silhouette
Boise 36 27 sn 35 21 sn St. Louis 69 47 r 58 40 s London 52 48 pc 53 41 sh Freddy affair of honor 21 ___ de los Reyes 58 Apple oracle
15 Guest at the between stamp
Boston 54 51 r 68 56 c Salt Lake City 33 20 sf 34 20 c Madrid 59 35 s 55 33 pc 35 “Playtime” (Epiphany)
Burlington 53 50 r 66 46 sh San Francisco 56 45 c 52 43 r Manila 88 76 s 86 75 s Starretts’ collectors? 59 Present
Charlotte 71 65 r 76 65 t Santa Fe 42 19 c 39 26 sn Melbourne 83 56 s 91 69 s homestead in director 22 Stay ahead of attachments
Chicago 61 37 r 45 31 pc Seattle 44 36 r 42 34 c Mexico City 71 41 pc 74 41 pc a 1953 film 60 Speed skater 25 Juice measures
37 Friend of Spanky 63 “It’s beginning
Cleveland 63 57 c 60 41 pc Sioux Falls 36 18 c 30 20 pc Milan 50 41 c 48 37 c Apolo
Dallas 76 53 s 70 50 s Wash., D.C. 68 64 r 77 61 t Moscow 42 38 r 42 35 c 16 Trendy veggie and Alfalfa 26 “O come, let us to look a ___ like
61 Easy ___ ___ Him” Christmas”
Denver 39 16 sf 32 14 pc Mumbai 88 64 pc 88 66 pc 17 Senate 38 One drawing
Detroit
Honolulu
61 50 c
83 73 pc 83 73 sh
54 37 pc
International Paris
Rio de Janeiro
55 46 c
93 76 pc
55 43 pc
93 76 pc
coverage a produce still 62 Perfume bottle
Today Tomorrow life? 64 Christian into Previous Puzzle’s Solution
Houston 79 56 c 78 68 c Riyadh 68 55 s 72 55 pc 18 Trilogy start L U N D I S L E D MO S T
Indianapolis 64 47 r 56 41 pc City Hi Lo W Hi Lo W Rome 60 41 pc 59 41 pc 42 Neighborhood women’s clothes O H A R A T E A R A R I A
Kansas City 57 34 sh 46 32 pc Amsterdam 53 45 pc 53 43 sh San Juan 85 75 s 84 75 sh 19 Old flames T O T E M A N T E T E L L
of central Rome 65 Flat sign H O G WA R T S S C H O O L
Las Vegas 58 38 pc 56 41 pc Athens 63 47 s 64 46 s Seoul 48 27 pc 41 23 pc 20 Member of a S O L S UM
Little Rock 74 52 t 71 54 s Bangkok 90 79 c 92 78 pc Shanghai 55 47 r 51 39 sh
discussion group 43 Spot for a slip 66 On that account B I B M I D D L E E A R T H
Los Angeles 66 44 pc 62 46 c Beijing 43 19 pc 41 16 s Singapore 90 77 pc 88 77 t A R U B A I R I S J O I E
Miami 84 75 pc 84 76 pc Berlin 54 40 pc 50 42 pc Sydney 75 66 sh 75 66 pc for glaziers? 44 Christmas dinner 67 Porky parents T E T O N N I T G O N N A
Milwaukee 57 34 r 42 29 pc Brussels 53 45 pc 54 41 pc Taipei 80 68 pc 76 63 pc 23 “...___the finale 68 “Amahl and the I N T O S A F E O R D E R
Minneapolis 39 25 sn 29 23 c Buenos Aires 87 61 t 81 62 s Tokyo 51 47 r 61 48 pc K E E B L E R T R E E O S T
season to be 45 Many a Dickens Night Visitors,” Y E A L A P
Nashville 72 61 t 75 58 pc Calgary 18 1 pc 12 1 sn Toronto 54 51 r 58 36 pc S A N T A SWO R K S H O P
New Orleans 80 68 r 79 68 t Dubai 80 66 s 81 69 s Vancouver 43 35 r 41 30 c jolly” story, originally e.g. U B E R O H N O Y OW I E
New York City 64 63 r 73 59 c Dublin 50 43 pc 45 38 sh Warsaw 54 38 c 46 38 pc P UMA N O E L O N E N D
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 63 36 s 57 36 s Edinburgh 46 43 pc 45 38 r Zurich 52 34 s 46 36 pc S T O P S A L E N O S E S

THE 10-POINT:
MAKE TIME FOR THE DAY’S TOP
STORIES DELIVERED TO YOUR INBOX.
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GLOBAL FINANCE C3 | IN THE MARKETS C4 | MARKETS DIGEST C6

A Bank Trade
Squeeze Play That Didn’t Pay
HEARD ON
Online lenders’ funding costs rise FINANCING | C2 THE STREET | C10
© 2015 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Wednesday, December 23, 2015 | C1
DJIA 17417.27 À 165.65 0.96% S&P 2038.97 À 0.88% NASDAQ 5001.11 À 0.65% 10–YR. TREAS. g 12/32, yield 2.239% OIL(new) $36.14 À $0.33 EURO $1.0958 YEN 121.07 See more at WSJMarkets.com

How to Bet on Oil: Don’t Crude Connections

Traders are avoiding costly oil-futures bets by wagering
instead on the currencies of oil-producing nations.

Proxies such as the phenomenon, which prevailed Simply betting on the price a barrel on ICE Futures Eu-
0
Currency/Dollar
this year, makes it more ex- of a commodity “is not a thing rope, setting a new low dating
Norwegian krone and pensive to bet on oil futures, anymore,” said Michael Hague, back to July 2004.
Norwegian
krone
Petrobras bonds are as it forces investors pay up global head of commodities re- Contango isn’t the only fac- –5% Mexican
when they trade out of old search at Société Générale in tor driving these proxy trades. peso
becoming a hot wager contracts and into newer ones. New York. “These days it’s Many investors believe that oil Canadian
To avoid pricey futures, more about going long and producers’ currencies and en- –10 dollar
BY IRA IOSEBASHVILI traders have turned to other short, using more exotic in- ergy-firm securities are due to Russian
wagers as a proxy for oil. vestments.” bounce back. Others want to ruble
–15
Some traders anticipating a Some of the trades are looking U.S. oil prices surpassed avoid the hefty losses that
rebound in oil are making an smart compared with a pure prices on the global market for have scarred raw-materials
indirect bet: wagering on en- oil bet: The krone, the cur- the first time in four years on markets this year. –20
ergy companies and the cur- rency of major oil producer Tuesday, adding one more Some are seeking to boost
rencies of oil-producing na- Norway, has fallen twist in an already topsy-turvy returns, for instance by pur- Nymex
tions instead of the commodity just 2.8% since the start of No- energy market. Light, sweet chasing interest-bearing assets –25 crude
itself. vember, a period in which crude for February delivery such as the Petrobras bonds
Brent
Their approach is spurred Brent futures dropped 27% to gained 33 cents, or 0.9%, to or by pairing a bet on oil-re- crude
–30
in part by contango, an occa- an 11-year low. The dollar $36.14 a barrel on the New Please see PROXY page C4
sional event in which the cur- bonds of Brazilian oil giant York Mercantile Exchange. N D
rent price of oil is lower than Petróleo Brasileiro SA have Brent, the global benchmark,  U.S. oil prices top global level Sources: WSJ Market Data Group (Brent/Nymex crude), Tullett Prebon (FX)
prices for future delivery. The fallen 10% over the same span. fell 24 cents, or 0.7%, to $36.11 for first time in years........... C4 THE WALL STREET JOURNAL.

Package Deals: Invest The Price of Citizenship

Bonds’ ‘Fear Gauge’
St. Kitts & Nevis
Suddenly Sells Off
To Get Citizenship $400,000

Antigua & Barbuda

$400,000 BY MIN ZENG
Grenada A gauge of price swings in
$350,000 the U.S. government bond
market has fallen to the low-
Dominica est level in nearly a year, the
$200,000 latest sign that investors re-
main skeptical that the Fed-
eral Reserve will repeatedly
raise interest rates in 2016.
The MOVE Index, which
tracks trading in derivatives
on Treasury bonds, measures
the size of expected govern-
ment-bond price swings over a
certain period. Similar to the
CBOE Volatility Index, or VIX,
the Fed to shock” investors
with swift rate increases, said
Kevin Giddis, head of fixed in-
come at Raymond James. “It is
unlikely that rates are going to
move too much or too fast in
2016.”
The yield on the benchmark
10-year Treasury note closed
at 2.239% Tuesday, down from
2.3% before the Fed’s rate-in-
crease decision.
The Fed’s rate increase has
had a bigger impact on short-
term Treasury debt, whose
yields are highly sensitive to

66.37
which serves as the stock mar-
ket’s fear gauge, the MOVE in-
dex offers a broad view of
Treasury-market sentiment. Monday’s price for the MOVE
The index settled at 66.37 Index, a measure of expected
KITTITIAN HILL

Monday, the lowest level since volatility in Treasury bonds.

December 2014, according to
Note: All amounts are minimum investments
Source: Apex Capital Partners data from Crédit Agricole.
The index, which is released changes in the central bank’s
A developer in St. Kitts said he has made about 200 sales at his Kittitian Hill development to citizenship-by-investment owners. with a one-day lag, hit a two- policy outlook. The yield on
month high of 79.57 last week, the two-year note rose above
BY CRAIG KARMIN Chinese, Russians and Middle many investors come from na- Even the U.S. has the EB-5 visa a day before the Fed an- 1% for the first time since
Easterners, and even some tions that face travel restric- program, which grants resi- nounced its first interest-rate 2010 following the Fed’s an-
Tiny island nations like St. from the U.S., to invest tions, their new passports dency to foreigners who invest increase in nine years. A lower nouncement, though it pulled
Kitts and Nevis, Dominica and $200,000 or more in real-es- make it easier for them at least $500,000 in certain reading on the index means back to 0.977% Tuesday.
Grenada have struggled since tate developments in the Ca- to visit more than 100 coun- business ventures that create investors expect smaller fluc- Traders in futures markets
the financial crisis to attract ribbean. The investors have tries, including much of Eu- jobs. tuations on bond prices. A see lower interest rates in
money for new construction helped pay for new resort rope, without visa require- But the Caribbean is emerg- higher reading means the op- coming years than the Fed
projects to projects anchored by hotels ments. Americans, meanwhile, ing as the new hot spot for so- posite. projects, in part because they
PROPERTY boost tour- from big companies including are attracted in part to the called citizenship-by-invest- The decline underscores the attach some probability to a
REPORT ism. Hilton Worldwide Holdings possibility of cutting their U.S. ment programs, in part apprehension about the pace return to zero. In December
One way Inc., Hyatt Hotels Corp. and tax bills. because the citizenship pro- of U.S. economic growth and 2016, for example, the Fed
they have the Four Seasons. The programs aren’t a new cess is more streamlined than the Fed’s capacity to carry out projects a 1.375% fed-funds
found to sweeten the deal: In exchange for buying a concept. They have existed for others parts of the world. four interest-rate increases rate, based on officials’ pro-
selling citizenship as part of residential unit or taking an years in the region, though Some governments fear they next year, as the central bank’s jections from their policy
the package. equity stake in a project, the they have attracted only spo- can’t measure up businesswise economic projections indicate meeting, up about a point
A collection of Caribbean property owners gain citizen- radic attention, as well as in without them. officials expect. from Tuesday. Futures mar-
nations have enticed wealthy ship in these countries. Since places like Cyprus and Malta. Please see EXPAT page C8 “The market doesn’t expect kets put it at 0.76%.

The Economy’s Big Weakness

BY STEVEN RUSSOLILLO ufactured goods fell 0.6% in weak oil prices, the strong
November from a month ear- dollar and tepid overseas
One economic trend that lier. growth. Spending on oil- and
hasn’t done its bit for this Through the first 10 gas-field machinery also has
6½-year recovery: capital months of the year, durable- declined significantly due to
spending. goods orders dropped 4.2% the energy rout. And the
Hiring has improved, compared with the same pe- outlook for 2016 doesn’t look
stock markets have rallied riod a year earlier. much better.
and consumer confidence Orders for nondefense Even stripping out energy,
ROBERT NICKELSBERG/GETTY IMAGES

has re- capital goods excluding air- companies remain tight-

AHEAD OF bounded. craft—a less-volatile gauge fisted—except when it comes
THE TAPE But U.S. of capital expenditures—fell to rewarding shareholders.
corporations 3.8% over the same period, Dividends and buybacks for
remain hesi- according to the Commerce the 12-month period through
tant to deploy funds to new Department. September totaled a record
projects and equipment, or Those drops are due to $934.8 billion, according to
to upgrade facilities and S&P Dow Jones Indices. To-
technology. Instead, compa- tal returns have set records
nies continue to shower Out of Order for eight consecutive quar- A contractor installs solar panels atop a Kohl’s department store in Hamilton, N.J., in 2010.
shareholders with record New orders for nondefense ters.
levels of dividends and buy-
backs.
This skittishness to spend
capital goods excluding aircraft,
change from a year eariler
20%
The lack of capital spend-
ing has taken an economic
toll. U.S. economic growth is
Financial Woes Scorch SunEdison
has hurt productivity, weigh- on pace to expand at less BY LIZ HOFFMAN has forced the company to for energy financing, known as
ing on the economy’s long- 10 than 3% for a 10th consecu- AND MATT JARZEMSKY cancel or renegotiate acquisi- yieldcos. These vehicles raise
term growth prospects. 0 tive year, the longest stretch tions, stop paying some ven- money from public investors
Wednesday’s report on in the postwar era. Six months ago, SunEdison dors and cut jobs, according to to buy power projects from
new orders for durable –10 Until capital spending Inc. was flying high. Shares public filings and people famil- developers, then sell power to
goods, a key indicator of –20 picks up and demand for du- had risen 15-fold in three years iar with the matter. The com- utilities under long-term con-
business investment, should rable goods rises, don’t be as some of Wall Street’s big- pany now is working with tracts. SunEdison has two
–30
underscore this point. surprised if economic gest investors bought into the bankers to raise new debt and yieldcos, publicly traded Ter-
Economists polled by The –40 growth remains subdued. solar energy company’s prom- is marketing its portfolio of raForm Power Inc. and Terra-
Wall Street Journal estimate 2006 ’10 ’15 ise of fast growth, fueled by a solar and wind projects to po- Form Global Inc.
orders for long-lasting man- Source: Commerce Department Email: tape@wsj.com new brand of financial engi- tential buyers, some of the Renewable-energy compa-
neering. people said. nies first launched yieldcos in
INDEX Commodities.................................................... C5 Dividend News........................................... C5,9 Global Finance................................................. C3 Mutual Funds........................................ C10 But SunEdison’s shares have SunEdison’s woes cast 2013. The logic: Sponsors get
Bond Tables............................................... C5 Credit Markets................................................ C5 Exchange-Traded Funds......................... C7 Heard on the Street................................. C10 New Highs & Lows............................... C9 fallen 80% since July, exacer- doubt on a corporate structure captive buyers for their fin-
CD Rates.................................................... C10 Currency Trading.......................................... C6 Finance Watch................................................ C3 Money Rates................................................. C10 Stock Listings........................................... C7
bating a financial crunch that once seen as a breakthrough Please see SOLAR page C2
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C2 | Wednesday, December 23, 2015
Online Lenders Pinched by Market Woes
Consumer platforms
see funding costs rise,
securities prices slip
amid investor caution
BY TELIS DEMOS
Recent market jitters are
starting to hit online con-
sumer lenders.
As in other credit markets,
funding for consumer loans
has felt the effects of investor
uncertainty as the U.S. begins
to shift to higher interest rates
and many corporate junk
bonds struggle.
While the consumer-lending
moves have been modest com-
pared with the pain in other
parts of the bond market,
there are early signs of dam-
age, including delayed deals,
higher funding costs and de-
clining prices for securities
backed by the loans.
In a sign that more borrow-
ers also will have to pay
higher borrowing costs, Lend-
ingClub Corp. said Tuesday it
would raise interest rates
charged to new borrowers by
0.25 percentage point, match-
A trader exchanges dollars for Nigerian naira in Lagos, Nigeria.
SOLAR
Continued from the prior page
ished projects, which frees up
cash to invest in new ones.
And investors get high divi-
dends, or yield, which is par-
ticularly attractive in an era of
low interest rates.
Yieldcos raised $11.3 billion
this year through September,
versus the $5.2 billion raised
during the same period in
2014, according to trade publi-
cation Clean Energy Pipeline.
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MONEY & INVESTING
ing the earlier move by the according to PeerIQ. It priced
Federal Reserve to increase its the second package in October
target short-term rate. at 2.5 percentage points
Fast-growing online plat- higher than Libor and the
forms such as Lending Club third—completed in mid-De-
and Prosper Marketplace Inc. cember—nearly three percent-
find borrowers and sell their age points higher than Libor.
loans to investors, collecting a The higher yields could lead
fee in the process. The plat- to rising borrowing costs or
forms rely on being able to of- slimmer margins for the banks
fer borrowers better terms and lending platforms.
than traditional banks, in part “You’re seeing spreads
because they have lower costs [above benchmarks] widen
and because some of the in- across credit markets, and
vestors, such as listed funds that’s also true for market-
and those buying securitized place lending securitizations,”
loans, have relatively low yield said Ram Ahluwalia, chief ex-
expectations. ecutive of PeerIQ.
That may be changing. Citi- The next deal to watch:
group Inc., which since August Deutsche Bank is running a
has sold more than $1 billion sale of roughly $1 billion in
of securitized loans from on- personal loans bought earlier
line platform Prosper, has had by Santander Consumer USA
to offer progressively higher Holdings Inc. through Lending
yields on each deal to entice Club, according to people fa-
investors, according to PeerIQ, miliar with the matter. It isn’t
a data firm tracking market- yet clear whether the sale,
place, or “peer to peer,” lend- which started in November,
ing. will take place at a discount to
The bank priced the first face value. If it does, that
package of loans in August could signal that buyers are
with an average-weighted requiring higher yields on the
yield of about two percentage loans, or they are growing
points above the benchmark more worried about the ability
London interbank offered rate, to resell the loans.
Scarcity of Dollars Hits Africa Firms
BY NEANDA SALVATERRA
Valentine Ozigbo is strug-
gling to obtain a key construc-
tion ingredient as he refur-
bishes and builds hotels
in Nigeria: the U.S. dollar.
Some of Africa’s largest
economies, including Nigeria,
Angola, Ethiopia and Mozam-
bique, are restricting access to
the greenback to protect dwin-
dling reserves. That is causing
problems for businesses from
Mr. Ozigbo’s Transcorp Ho-
tels to international giants like
General Electric Co. and Coca-
Cola Co., all of which are strug-
gling to get the dollars they
need for imports or to send
profits back home.
The shortage comes as the
inflow of dollars from resource
exports, from oil to cotton, has
plummeted with the prices of
these commodities. The com-
modity rout also is putting
pressure on local currencies,
which some central banks are
trying to support with their
dwindling supply of dollars.
This dollar squeeze is frus-
trating investors, increasing
JOE PENNEY/REUTERS
costs and delaying projects. It
may hamper future investment
in countries reeling from the
fall in commodity prices.
“It’s been a rough ride for a
lot of companies in Nigeria, if
But almost as quickly as the
model caught fire, it has
cooled. The average yieldco’s
shares are down by about one-
recently traded at between 40
and 65 cents on the dollar, ac-
cording to MarketAxess Hold-
ings Inc.
third since June amid a Tensions over the Maryland
broader selloff in energy Heights, Mo., company’s finan-
stocks. And because sponsors cial woes erupted in a board-
like SunEdison keep big stakes room coup last month. SunEdi-
in the units, their stocks fall son pushed out independent
together. directors and managers at its
SunEdison’s market capital- TerraForm yieldcos after they
ization has declined to $1.68 resisted pressure to help
billion from nearly $10 billion SunEdison shore up its balance
in July. Meanwhile, it has $11.7 sheet, some of the people said.
billion in debt, including the David Tepper’s Appaloosa
debt of TerraForm Power and Management LP, a major Ter-
TerraForm Global. Its bonds raForm Power investor, last
month accused SunEdison of
pressuring its yieldcos to over-
pay for assets and said the
setup has “obvious conflicts.”
The fund has requested SunE-
dison produce documents re-
lated to the boardroom shake-
up, according to a Tuesday
regulatory filing.
95
ea.
“SunEdison and its affiliates
continue to proactively re-
spond to the current market
conditions to ensure the com-
pany is well positioned for
success,” a spokesman said in
an email. The company has “a
very strong project pipeline
and backlog, and a sensible,
well developed growth plan
for 2016,” he said.
SunEdison’s decline has
been particularly hard on
hedge funds. At its peak, the
company was two-thirds
owned by such investors, in-
cluding David Einhorn’s Green-
light Capital Inc. and Larry
Robbins’s Glenview Capital
Management LLC.
Others, including Appaloosa
and BlueMountain Capital
Management LLC, took big po-
sitions in TerraForm Power,
whose shares are down 70%
from an all-time high in April.
SunEdison’s recent troubles
began in July, when it an-
nounced a $1.9 billion pur-
chase of Vivint Solar Inc., a
* **** THE WALL STREET JOURNAL.
don, last month withdrew a Journal analysis of securities
planned additional share offer- filings. That includes more
ing of its fund. Its shares are than $1.5 billion worth of in-
down 2.6% since the beginning vestment trusts launched on
of October. the London Stock Exchange to
Bill Kassul, a partner at the take advantage of U.K. rules to
fund, said the attempted offer- buy loans and sell the shares
ing was affected by the col- to retail investors.
JAMES C. SVEHLA/TNS/ZUMA PRESS
lapse of a European lending Now, industry experts are
platform, the poor stock per- fretting about whether the
formance of U.S.-listed plat- growth will continue, espe-
forms such as Lending Club cially in light of the pullback
and investors dialing back new of credit that forced a high-
bets in general. yield mutual fund at Third Av-
“Investors said they’ve allo- enue Management LLC and
cated enough for 2015, and others to close or halt re-
that it would be a [challenge] demptions.
Avant CEO Al Goldstein for them to have to sell other “Markets have been tougher
funds,” he said. If markets im- in the past three months,” said
Share prices for London- prove, he said, the offering Al Goldstein, chief executive
listed funds that buy market- could return next year. and founder of Avant Inc., an
place loans also have been de- The volume of loans made online lender which this year
clining. VPC Specialty by Lending Club, Prosper and began securitizing some of its
Lending Investments PLC has other similar platforms has loans. Avant is aiming to do
fallen 9.2% since the beginning been surging over the past few more securitization deals next
of October. VPC is managed by years. Investment vehicles year, Mr. Goldstein said.
Victory Park Capital, a Chi- that buy those loans have Still, with unemployment
cago-based asset-management grown alongside the market, and household-debt levels low,
firm that has invested more including listed retail funds. he expects strong growth as
than $1.7 billion in online mar- Funds focused on market- consumers continue to seek,
ketplace lending deals from place loans raised more than and repay, online loans. “I’m
2010 to earlier this year. $8 billion in 2015, more than optimistic it’s a bit of a blip,”
Ranger Direct Lending six times the amount raised Mr. Goldstein said.
Fund PLC, which raised $200 last year, according to figures —Peter Rudegeair
million in a May listing in Lon- from PeerIQ and a Wall Street contributed to this article.
not all the companies,” said Mr. currency, as it looks to shore tunji, Coca-Cola’s managing di-
Ozigbo, chief executive of up its reserves. rector in Nigeria. “Business is
Transcorp Hotels. “It’s obviously not like it not as usual.”
Nigeria gets more than 90% used to be, where you would go Mr. Ozigbo’s Transcorp
of its foreign-currency re- to the bank and get your dol- needs dollars to pay contrac-
serves from oil exports. Since lars,” said Jay Ireland, the Af- tors and to import building
June 20, 2014, when the U.S. oil rica chief executive officer for materials to upgrade one hotel
price was at $107.26, the U.S. GE. “Now it’s a process that and build another, among other
oil price has declined 66% they require and it takes lon- construction projects.
through Tuesday’s close of ger,” he said, talking about Ni- Last year, getting a “siz-
$36.14, amid oversupply and geria and Angola. able amount” of dollars would
weak growth in demand. Mr. Ireland said GE remains have taken 48 hours to a week,
Oil’s decline sent the value committed to long-term proj- Mr. Ozigbo said. Now,
of the naira, Nigeria’s currency, ects in Africa, but the dollar Transcorp is lucky if it can ob-
sharply lower at the start of tain the money within
the year. In March, the Central three weeks, he said.
Bank of Nigeria fixed its ex-
The dollar squeeze Amid delays, the cost of up-
change rate at around 199 naira is frustrating grading the Hilton in Abuja has
to the dollar. By this month, its ballooned from an estimated 16
currency reserves were down
investors and billion naira ($79 million) to
18% to $29.5 billion from the delaying projects. about 26 billion naira since last
same month last year. year.
In the summer, the central Mr. Ozigbo now has serious
bank introduced a list of 41 shortage means that it now doubts about whether his proj-
items, from meat to concrete, takes local clients longer to buy ect will remain economically
that it won’t release dollars for. GE products priced in dollars. feasible.
But no matter what a buyer Coca-Cola has been in Africa Companies are looking for
wants their dollars for, their re- for almost a century and can ways to get around the short-
quest has to be vetted against obtain dollars from across its age, particularly by buying
this list, slowing down any at- businesses. Still, the beverage more local products, which typ-
tempt to buy the currency. giant is concerned ically don’t need dollar pay-
Angola now lists indus- that its suppliers will start to ments. “It’s a natural hedge,”
tries—including the oil and feel the pinch as they struggle said Mr. Ireland.
food sectors—that have prior- to fund imports that they need. An official at the central
ity for the country’s dollar re- “If there are no changes in bank of Nigeria said complaints
serves, In Mozambique, monetary policy it might be- about dollar scarcity aren’t sur-
the government requires com- come a bigger challenge and prising, but the blame should
panies to convert half of any that is a space we are watching be placed on the falling oil
dollar revenues into the local very closely,” said Adeola Ade- price rather than the bank.
Powering Down
Yieldcos, which raise money to buy power projects, have tumbled in recent months after two years of gains.
2013 2014 2015
100%
Share-price
performance of 75
yieldcos since
inception
50 NRG Yield
TransAlta
25 Renewables
NextEra Energy
0
Pattern Energy
–25 8point3 Energy
Funds raised by yieldcos
$5 billion
4
–50
Abengoa Yield
TerraForm Global
3
2
Equity
Debt
–75 TerraForm Power
1
Sources: FactSet (prices);
0
3Q ’13 1Q ’14 1Q ’15
Clean Energy Pipeline (funds)
THE WALL STREET JOURNAL.
rooftop solar-panel installer. mounted at SunEdison. In Oc- refused both requests, the per-
Investors worried that Vivint’s tober, the company announced son said.
focus on individual home- job cuts and terminated a The men were replaced on
owners made it riskier than $700 million purchase of a the conflicts committee, ac-
commercial projects. Latin American power pro- cording to filings. SunEdison
SunEdison’s shares fell ducer. By November, SunEdi- appointed new directors, while
more than 70% by October. son had stopped paying some senior SunEdison officials took
The company began negotiat- vendors, some of the people over management roles. Mr.
ing with Vivint and its major- said. In an email, a SunEdison Wuebbels became CEO of both
ity owner, Blackstone Group spokesman said the company TerraForm entities.
LP, to lower the deal price, ac- “proactively manages its work- The past two weeks have
cording to people familiar with ing capital and vendor pay- brought better news. Congress
the matter. ments” in the normal course extended tax credits used by
That required approval of business. solar-power producers. And
from independent directors at At a Nov. 20 board meeting, the company announced new
TerraForm Power, which had SunEdison Chief Financial Offi- terms on the Vivint deal, un-
agreed to buy the rooftop in- cer Brian Wuebbels asked Ter- der which Blackstone will be-
stallations as SunEdison fin- raForm Power’s two-man con- come a major SunEdison
ished them. The directors, flicts committee to approve stockholder and extend a new
Mark Lerdal and Hanif Dahya, the new Vivint terms, some of line of credit to the company.
refused to sign off without the people said. He also SunEdison’s shares rose nearly
more information and sought sought their help raising cash, 60% last week. On Tuesday,
to relax the terms under which one person added, suggesting the shares fell $1.43, or 21%, to
TerraForm could later be TerraForm prepay for future $5.31.
forced to buy the projects, the project purchases or repur- “We expect the yieldco
people said. chase shares held by SunEdi- model to bound back,” SunEdi-
Meanwhile, problems son. Messrs. Lerdal and Dahya son’s spokesman said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. NY Wednesday, December 23, 2015 | C3

GLOBAL FINANCE
Equity Capital Buoys Asian Bankers in 2015 Finance
Watch
BY JULIE STEINBERG Hong Kong will likely be inter-
AND KANE WU ested in “more consumer-ori-
ented sectors like fintech, in-
HONG KONG—For bankers surance and health care,” said
in China, there was nowhere Aaron Arth, head of equity
to go but down after the torrid capital markets for Goldman MORGAN STANLEY
first six months of the year. Sachs Group Inc. in Asia ex-
And down they went, some cluding Japan.
Ex-Adviser Sentenced
falling so far they ended up Banks also are expected to A former Morgan Stanley fi-
the subject of government in- reap revenue from Chinese nancial adviser was sentenced to
vestigations into the causes of companies listed in the U.S.— three years of probation for tap-
the summer stock-market particularly in the technology, ping illegally into the Wall Street
crash. media and telecommunications firm’s computer system and tak-
Still, thanks to a modest sector—that are looking to be ing client information home with
fourth-quarter rebound and taken private and later relist him, his lawyer said Tuesday.
stunning numbers posted in back home. Such companies Galen Marsh was fired in Jan-
the first half, 2015 turned out are hoping to benefit from uary for viewing and copying ac-
pretty well for Asia’s equity- higher valuations on the main- count information on other ad-
capital-markets bankers, who land. visers’ clients and in September

QILAI SHEN/BLOOMBERG NEWS

focus on initial public offer-
ings and stock sales.
For 2015 to date, equity
capital markets in the region
generated $6.23 billion in rev-
enue, up 2.8% from 2014, even
including the blockbuster fees
banks took home from Alibaba
Group Holding Ltd.’s $25 bil-
lion IPO in September 2014.
The first six months of the
year allowed some banks to
“squirrel away nuts for win-
ter,” a senior investment
banker in Hong Kong said.
The second half has been
dismal, though. Asia-Pacific
revenue from new listings in
the third quarter totaled just
$159 million, down 83% from
the second quarter and 78%
from a year earlier, according
to Dealogic. Excluding fees
from the Alibaba IPO, which
listed in last year’s third quar-
ter, revenue was down 63%
from the same period a year
earlier. Second-half revenue
across IPOs and other prod-
ucts was down 25% from the
first half.
In China, the numbers were
even more stark. Companies
listing on China’s main Shang-
hai bourse raised $16.8 billion
collectively in the first half of
2015 before regulators halted
IPOs in July as part of an ef-
fort to calm markets. After
regulators let IPOs resume at
the end of the year, another
$700 million has been raised
by nine companies, according
The Shanghai Stock Exchange. Companies listing on the bourse raised $16.8 billion in the first half.
to Dealogic, with a few more
set to list by year-end. The to-
tal amount, $17.5 billion so far,
already is the highest since
2008.
The Asia-Pacific market is
poised to remain the biggest
equity capital market in the
world this year, with total deal
value reaching $345.17 billion
so far. That total exceeds the
Americas market, which has
recorded a year-to-date value
of $278.01 billion. It also sur-
passes the market encompass-
ing Europe, the Middle East
and Africa, which has logged
$277.76 billion so far this year.
Even as China’s market was
recovering, the government
launched a harsh crackdown
on bankers and traders
deemed responsible for its
crash. Citic Securities Co.,
China’s most important invest-
ment bank, was targeted by
investigators.
At least a dozen top execu-
tives were detained and its
longtime chairman has
stepped down.
After all the drama in the
first half, the fourth quarter
turned out to be the most im-
portant for the outlook into
next year. Investors didn’t em-
brace the offerings, which
tended to price at the low end
of expectations, and some
deals needed the help of big
cornerstone investors to get
off the ground. Offerings by
China International Capital
Corp. and Everbright Securi-
ties Co. were delayed from
earlier quarters, and CICC had
to cut the size of its float.
Investors and companies
will likely stay cautious early
next year, when Chinese offer-
ings likely will start off slowly
but could pick up if Beijing
loosens the reins. IPO over-
hauls could begin in May, peo-
ple familiar with the matter
told The Wall Street Journal
earlier this month, allowing
companies to list based on
their merits, rather than re-
quiring government approval.
Banks started to see some
pickup in activity after Beijing
lifted restrictions on trading.
“Once regulator restrictions
eased, we saw the kinds of
deals we were getting done in
Some 27 Chinese companies
listed in the U.S. have an-
nounced plans to go private so
far this year, with a total
transaction value of $33 bil-
lion, a record level that is
higher than the previous six
years combined, according to
Dealogic.
Deals are moving ahead,
the second quarter,” though bankers say, even though com-
fewer of them, said Damien panies are unlikely to benefit
Brosnan, Asia head of equity from the sky-high valuations
syndicate and equity-linked seen in China earlier this year,
origination at UBS Group AG. when such transactions be-
The Chinese securities reg- came popular.
ulator is likely to allow a mod- Despite the tumult, Hong
est increase in IPO activity, ac- Kong will regain its crown as
cording to Deloitte China. That the world’s leading stock ex-
will translate into about 380 change for initial public offer-
to 420 new listings, raising ings this year for the first
230 billion yuan to 260 billion time since 2011. As of Dec. 22,
yuan ($35.5 billion to $40.1 82 companies had listed on
billion) in China’s domestic the main board of the Hong
market next year. Deloitte ex- Kong stock exchange, raising
pects Hong Kong to complete $33 billion, according to Dea-
115 to 125 new listings, raising logic data.
260 billion to 280 billion Hong That beats New York, which
Kong dollars ($33.5 billion to was the world’s No.1 last year.
$36.1 billion) in 2016. Only 53 companies have gone
The total value of potential public on the New York Stock
IPOs has already exceeded $30 Exchange this year, down from
billion, according to bankers 118 in all of 2014, with the to-
involved in the deals, includ- tal equity raised down 74%
ing a planned $10 billion float from last year’s total of
for Postal Savings Bank of US$74.2 billion.
China, a listing of peer-to-peer Other Asian exchanges have
lender Lufax worth as much as offered bright spots. Tokyo
$5 billion, and Taikang Life In- saw some of the world’s big-
surance Co., which hopes to gest IPOs by value this year as
raise $2 billion. the listings of Japan Post and
Global investors who focus its two financial units raised
on Chinese stocks listed in $12 billion in total.
pleaded guilty to one felony
count of exceeding authorized
access to a computer.
Prosecutors had sought
prison time for Mr. Marsh.
Mr. Marsh will pay $600,000
in restitution and forfeit comput-
ers and other hardware used to
take and store the client infor-
mation, said a spokesman with
the U.S. attorney’s office in Man-
hattan.
—Justin Baer
QATAR NATIONAL BANK
Expansion in Turkey
Qatar National Bank said it
will buy National Bank of
Greece’s Turkish subsidiary for
$2.94 billion, in one of the largest
takeovers by a Persian Gulf lender
outside its domestic market.
Doha-based QNB, half-owned
by Qatar’s sovereign-wealth
fund, said it entered into a final
agreement with the Greek bank
to acquire its 99.81% stake of Fi-
nansbank, which it intends to fi-
nance with its own funds. The
Qatari bank said it would remain
“strongly capitalized” after the
purchase. NBG, Greece’s largest
lender, will use money from the
deal to help pay back aid after
seeking help from the Greek
state to cover a €4.6 billion
($5.02 billion) capital shortfall
identified by the European Cen-
tral Bank during a health check
performed on the country’s big-
gest banks.
—Nicolas Parasie

Results come
faster with
a partner who
really knows
Latin America.
Itaú is one of the largest
financial conglomerates
in Latin America. If you
are thinking about investing
in the region, speak
to Itaú BBA. You will find
a partner with the knowledge,
experience and relationships
to help develop your business.

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go to itaubba.com

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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C4 | Wednesday, December 23, 2015 * *** THE WALL STREET JOURNAL.

IN THE MARKETS
Stocks Get Lift From Commodities Noble Sells
Remaining
Dow gains 165.65
points in low
preholiday volume;
Stake in
junk bonds advance Farm Unit
BY CORRIE DRIEBUSCH BY SARAH KENT

U.S. stocks gained along LONDON—Commodities

with commodity prices amid trader Noble Group Ltd. said
light stock-trading volume Tuesday that it has reached an
ahead of the Christmas holiday. agreement to sell its remain-
About 6.3 billion shares ing stake in its agricultural
changed hands Tuesday, the unit to Chinese state-backed
lowest volume day since grain trader Cofco for $750
Thanksgiving week and well million.
below the month-to-date aver- The sale of its remaining
age. 49% stake, which is subject to
The rise in stocks added to shareholder approval, will al-
Monday’s gains, putting the low the Singapore-listed
S&P 500 index on track to fin- trader to fulfill the commit-
ish the year down 1%. ment it made in November to
The gains follow several raise more than $500 million
weeks of volatility for stocks, after reporting a sharp drop in
as weakness in third-quarter earnings.
TUESDAY’S commodities Credit-rating firms Moody’s
SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES

MARKETS and a tumble I n v e s to r s

in high-yield DEALS & Service and
bonds dragged DEAL MAKERS Standard &
down the broader market. Poor’s have
“Oil and high yield have said that
been all anybody wants to talk they would likely downgrade
about,” said R.J. Grant, associ- the company’s investment
ate director of equity trading grade rating to junk status if
at KBW Inc., who added that its financial situation didn’t
modest gains in oil prices improve. Though Noble has
Tuesday helped boost stocks. played down the potential im-
In day-to-day trading, a ba- pact of a downgrade, it is
rometer of whether stocks can likely that operating costs
sustain gains has been the Chipotle shares fell 5.2% after the Centers for Disease Control and Prevention said it was investigating another E. coli outbreak. would rise as a result.
price of oil, traders said. U.S. “After completion of this
oil prices climbed 0.9% to ing to turn around. At the same added that as long as U.S. GDP another outbreak of E. coli last country would face a pro- transaction, Noble Group’s fi-
$36.14 a barrel Tuesday follow- time, where else are you going doesn’t turn negative, he month linked to the fast-casual longed period of uncertainty. nancial metrics will be well in
ing steep declines in recent to go?” doesn’t see a catastrophic pull- chain. In Asia early Wednesday, excess of those required of an
weeks. It remains down more U.S. stocks remain attractive back. “We are no longer comfort- Hong Kong’s Hang Seng Index investment grade credit,” the
than 32% for the year. relative to other asset classes The U.S. economy expanded able recommending the stock was up 1%, Australia’s S&P ASX company said in a statement,
“If we see continued stabili- and many stock markets at a slightly slower pace than until food issues are 100% con- 200 was up 0.9%, South Korea’s adding that the entire pro-
zation there, maybe we will get around the globe, he said, mak- initially estimated in the third tained and estimates have Kospi was up 0.7% and the ceeds of the sale will be used
a lift into the new year for ing it tough to cash out even if quarter, data showed Tuesday. stopped going down,” said J.P. Shanghai Composite was up to pay down debt.
stocks,” Mr. Grant added. investors are pessimistic about Gross domestic product grew Morgan analyst John Ivankoe 0.2%. Japan’s markets were The disposal likely will
The Dow Jones Industrial 2016. at a 2.0% annual rate in the in a note to clients Tuesday. closed for a holiday. stave off any looming liquidity
Average rose 165.65 points, or Oil’s gains also helped third quarter, the Commerce He cut his rating on the stock —Kristen Scholer, Riva Gold squeeze, but Noble must still
1%, to 17417.27. The S&P 500 steady the high-yield market Department said, less than its to “neutral” from “over- and Mike Cherney convince shareholders that it
climbed 17.82 points, or 0.9%, Tuesday, with junk bonds gen- previous estimate of 2.1%. weight” and slashed his year- contributed to this article. can deliver on its promise to
to 2038.97, and the Nasdaq erally trading higher. The larg- Economists surveyed by The end 2016 price target to $555 transform the struggling com-
Composite gained 32.19 points, est high-yield bond exchange- Wall Street Journal had ex- from $630, 12% above where AUCTION RESULTS pany.
or 0.6%, to 5001.11. traded fund by assets, the pected growth of 1.9%. the stock closed Tuesday. Here are the results of Tuesday's Treasury auctions. The Hong Kong-based
All bids are awarded at a single price at the market-
“We’re seeing a lot of inde- iShares iBoxx $ High Yield Cor- In corporate news, shares of Mr. Ivankoe also chopped clearing yield. Rates are determined by the difference trader has struggled this year
cision in this market,” said porate Bond ETF, rose 1.2%. Chipotle Mexican Grill fell his fiscal year 2016 and 2017 between that price and the face value. amid falling commodities
Daniel Morgan, senior portfolio Bonds from some energy $27.40, or 5.2%, to $494.61 a earnings-per-share estimates. FOUR-WEEK BILLS prices, reporting an 84% drop
Applications $157,336,738,900
manager at Synovus Trust Co. firms were among the biggest year-and-a-half low, after ana- The Stoxx Europe 600 fell Accepted bids $45,000,278,900
in its third-quarter net profit
“There seems to be all this gainers, including debt from lysts cut their earnings fore- 0.1%. Spain’s IBEX 35 stock " noncompetitively $279,125,900 last month and simultaneously
$100,000,000
negativity in the outlook going Transocean, Whiting Petro- casts for the next two years. market index rose 0.5%, fol- " foreign noncompetitively
Auction price (rate) 99.984833
announcing the departure of
forward, with the consensus leum and Oasis Petroleum. The lowered expectations come lowing a 3.6% decline Monday (0.195%) its chief financial officer. It
Coupon equivalent 0.198%
that rates will go up, corporate “Credit spreads are pointing amid news Monday that the after inconclusive elections Bids at clearing yield accepted 40.94%
also has been dogged by alle-
earnings are at risk and we’re toward a weak stock market,” Centers for Disease Control over the weekend raised fears Cusip number 912796GY9 gations of accounting irregu-
not quite sure if energy is go- Mr. Morgan said, though he and Prevention is investigating among investors that the The bills, dated Dec. 24, 2015, mature on Jan. 21, 2016. larities first raised by research
firm Iceberg Research in Feb-
ruary.

PROXY bad call, and could magnify

losses if markets turn treach-
erous and correlations—a mea-
sure of how much various as-
Continued from page C1 set prices move together—
lated investments with a bet break down.
against something else. “It’s hard enough to be
Money managers say using right on one thing, and now,
these roundabout approaches you have to be right on at least
can mitigate losses and cut two,” said Tobias Moskowitz, a
volatility. Mr. Hague is recom- professor at the University of
mending clients play a poten- Chicago Booth School of Fi-
tial bounce in beaten-down nance.
crude prices by investing in a An investor betting on a
basket made up of oil-sensitive currency as a way to play an
currencies such as the Russian oil price rebound, for example,
ruble, Norwegian krone, Mexi- must account for a whole slew
can peso and Canadian dollar. of additional factors
While all are down, none not strictly related to oil, such
matches the 32% loss in U.S. as central-bank policy and the
oil prices this year. strength of the U.S. dollar. An
Many traders warn that energy company’s securi-
proxy bets carry their own ties may be hurt by dozens of
risks. The strategy can in- idiosyncratic, company-spe-
crease the chances of making a cific factors or a broader sell-
off in stocks, and could decline
even if oil prices rise. Bond in-
vestors must carefully gauge
interest-rate movements and a
company’s creditworthiness.
At the same time, correla-
tions that had been in place
for months can go awry at in-
opportune times, Mr. Moskow-
itz said.
Money managers say
using these indirect
approaches can
reduce volatility.
“We build models based on
long-term relationships, but
during times of extreme mar-
ket stress they can change dra-
matically, and usually not in
your favor,” he said.
Money managers say risks
of using oil proxies often are
justified by avoiding the high
cost of betting on futures.
Investors buying dollar-de-
nominated foreign bonds have
been rewarded in recent years,
as a rising U.S. currency
helped bolster returns over
debt issued in the local cur-
rency. Some investors believe
that Norway can use its $850
billion sovereign-wealth fund
to stave off any oil-related hits
to its economy, which they say
has helped the krone outper-
form crude prices in the past
two months. Petrobras’s bonds
may have been spared from
bigger losses because some in-
vestors believe that Brazil
won’t allow the company to go
under, even if oil prices fall
further.
Meanwhile, many crude
proxies already have notched
big declines, suggesting a limit
to future downside moves,
they say. The Mexican peso is
Noble has denied any
wrongdoing and has published
an independent review of the
most controversial aspects of
down more than 32% since its accounting, which found
May 2011. Petrobras bonds the company complied with
have fallen by about 23% since industry standards and ac-
December 2014. counting rules.
Wasif Latif, who helps man- Noble’s share price has
age about $27 billion at USAA tumbled around 60% this year,
Investments, is buying the despite management’s efforts
stocks of oil producers such as to restore faith in the com-
ConocoPhillips and Cimarex pany.
Energy Co., which have been The disposal of the agricul-
hurt during the decline in tural unit—blamed for the
crude prices. Cimarex’s shares “vast majority” of the $208
have fallen nearly 20% this million in losses Noble re-
year. ConocoPhillips’s stock ported from its associates and
price is off by 33%. joint ventures in the nine
“Oil can go down further, months to the end of Septem-
and trading in these stocks ber—will not only give the
may still be choppy,” Mr. Latif company a cash infusion, but
said. “But from a valuation also remove liabilities relating
perspective they are very at- to the entity from Noble’s
tractive.” books.

U.S. Oil Prices Top Global Levels for First Time in 4 Years
BY TIMOTHY PUKO access comes at a time when U.S. benchmark contract, is a
the rest of the world is awash bullish sign, it also demon-
U.S. oil surpassed prices on in crude, too. The Organiza- strates how slowly a rebound
the global market Tuesday for tion of the Petroleum-Export- is happening, said Todd Gross,
the first time in four years, ing Countries has continued to chief investment officer at
another sign that a supply glut pump barrels at a fast clip to QERI LLC. It took months for
that originated in the U.S. is compete with U.S. producers, falling prices to lead to lower
firmly entrenched world-wide. keeping supplies high and con- output in the U.S., and months
But some analysts said par- tributing to this year’s steep more for lower output to erase
ity between U.S. and global oil declines in both U.S. oil and the longstanding discount on
benchmarks could signal the Brent crude. U.S. oil. For U.S. oil prices to
start of a recovery, as compa- Tuesday’s price move could continue rising, energy compa-
nies pumping in the U.S. trim mark a turning point, some nies in America will have to
production analysts and investors said. continue to cut back output,
COMMODITIES in response Parity between U.S. and global Mr. Gross said.
to low prices is a sign that falling “It’s not like WTI moved up
BALAZS KORANYI//REUTERS

prices while U.S. production is making a to meet Brent,” he said. “Brent

oil demand continues to grow. dent in the supply glut, said came down to WTI.”
The U.S. government’s move Francisco Blanch, head of Gasoline futures ended the
last week to end a 40-year ban commodity research at Bank session down 2.9% at $1.1749 a
on crude-oil exports helped of America Merrill Lynch. gallon, the lowest settlement
speed the closing of the price “That’s the first sign of re- since February 2009. Diesel
gap, which had been narrow- balancing in my mind,” Mr. futures lost 1.2% to $1.0876 a
ing for months as the pace of Blanch said. “We’re getting Parity in U.S. and global prices indicates falling U.S. production is making a dent in the supply glut. gallon, its lowest settlement
the nation’s oil output de- out of it slowly.” since July 2004.
clined from a June peak. In Light, sweet crude for Feb- this month, compared with tions on the Persian Gulf coun- for energy derivatives at Elite Analysts expect U.S. inven-
October 2011, U.S. oil traded at ruary delivery gained 33 cents, losses of 19% for Brent. try are lifted. And a slowing Brokers LLC in New York. “We tory data due Wednesday to
a nearly $28-a-barrel discount or 0.9%, to $36.14 a barrel on Even though Nymex crude Chinese economy and warm don’t have anything major show domestic crude stock-
to Brent crude, the global the New York Mercantile Ex- no longer trades at a deep dis- weather in the U.S. and Europe coming out of the Middle East piles rose for the 13th time in
benchmark, due to a glut that change. Brent, the global count to Brent, oil prices still are likely to limit energy de- except the same [thing] and 14 weeks, according to a Wall
arose because surging output benchmark, fell 24 cents, or could fall further in the imme- mand this winter. OPEC is not going to stop.” Street Journal survey. Analysts
from shale oil outstripped do- 0.7%, to $36.11 a barrel on ICE diate months to come, Mr. “[Oil has] found its range While elimination of the also expect the U.S. to report
mestic demand. Futures Europe, setting a new Blanch and others said. Trad- down here and we’re going to spread between Brent and growing inventories of gaso-
Producers can now ship low dating to July 2004. ers are bracing for more oil sit here for a little while,” said West Texas Intermediate line and other petroleum prod-
crude outside the U.S., but the U.S. oil has lost 13% so far from Iran after economic sanc- Ian Weir, managing director crude, another name for the ucts.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Wednesday, December 23, 2015 | C5

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

Contract Open Soybeans (CBT)-5,000 bu.; cents per bu. 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Metal & Petroleum Futures Open High hilo Low Settle Chg interest Jan 891.00895.00 885.00 885.25 –6.00 97,514 Dec 108-292 108-292 108-292 108-282 –2.0 13,057
Contract Open
March 891.00895.50 885.25 885.50 –6.00 285,880 March'16 108-237 108-242 108-212 108-215 –2.0 972,138
Open High hi lo Low Settle Chg interest April 37.67
38.25 37.55 37.83 0.10 106,016
May 38.53
38.90 38.32 38.52 0.01 78,301 Soybean Meal (CBT)-100 tons; $ per ton. 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Copper-High (CMX)-25,000 lbs.; $ per lb. Jan 278.90 281.60 276.50 276.90 –2.10 40,541 Dec 99.760 99.760 99.758 99.750 –.007 94,139
Dec 2.1065 2.1115 2.0970 2.0970 –0.0320 1,027 June 39.15
39.55 38.97 39.14 –0.05 134,959
March 280.50 283.00 278.30 278.60 –2.10 167,351 Jan'16 99.660 99.660 99.655 99.655 … 156,767
March'16 2.1415 2.1435 2.1050 2.1090 –0.0310 128,174 Dec 42.50
42.70 t 42.04 42.13 –0.28 161,567
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Soybean Oil (CBT)-60,000 lbs.; cents per lb. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Gold (CMX)-100 troy oz.; $ per troy oz. Jan 30.77 31.00 30.36 30.44 –.33 45,098 March 102.469 102.500 102.109 102.156 –.359 29,484
Dec 1078.60 1078.60 1073.80 1074.80 –7.10 1,031 Jan 1.0967 1.1134 1.0840 1.0876 –.0128 40,709
Feb 1.1225 1.1426 1.1165 1.1201 –.0087 84,965 March 31.03 31.27 30.60 30.69 –.34 165,312 1 Month Libor (CME)-$3,000,000; pts of 100%
Feb'16 1078.00 1080.30 1071.20 1074.10 –6.50 281,829
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Feb 99.5500 99.5525 s 99.5500 99.5525 .0025 1,619
April 1078.30 1080.70 1072.10 1074.80 –6.50 42,467 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
June 1079.40 1081.50 1074.10 1075.70 –6.50 27,106 Jan 1.1985 1.2122 t 1.1690 1.1749 –.0345 42,637 Jan 1098.00 1098.00 1080.50 1083.50 –11.50 5,242 Eurodollar (CME)-$1,000,000; pts of 100%
Aug 1079.90 1081.10 1075.00 1076.70 –6.50 9,999 Feb 1.2114 1.2225 t 1.1813 1.1859 –.0314 98,730 March 1127.50 1127.50 1105.50 1108.50 –12.00 6,892 Jan 99.3750 99.3850 99.3750 99.3800 .0025 193,587
1082.60 1082.70 1077.10 1079.00 –6.50 17,734 Wheat (CBT)-5,000 bu.; cents per bu. March 99.2750 99.2900 99.2750 99.2800 … 1,279,837
Dec Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
March 480.00 482.75 471.25 471.75 –7.25 196,742 June 99.1350 99.1500 99.1300 99.1350 –.0050 1,162,199
Palladium (NYM) - 50 troy oz.; $ per troy oz. Jan 1.929 1.939 1.863 1.888 –.023 69,450
July 495.00 496.75 486.25 486.75 –6.50 55,872 Dec 98.8300 98.8400 98.8150 98.8200 –.0150 1,259,571
Dec 558.00 558.55 558.00 554.90 2.15 15 Feb 1.995 2.006 1.933 1.955 –.032 251,794
Jan'16 560.00 560.00 554.05 554.55 2.15 19 March 2.070 2.085 2.015 2.034 –.031 209,803 Wheat (KC)-5,000 bu.; cents per bu.
March 550.70 559.10 550.00 554.65 1.25 23,560 April 2.149 2.167 2.106 2.118 –.035 97,416 March 474.50 479.25 470.00 470.50 –3.25 101,976 Currency Futures
June 558.00 558.00 558.00 555.00 1.25 265 May 2.219 2.240 2.176 2.188 –.036 62,386 July 495.00 499.75 491.00 491.50 –3.50 43,105 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Platinum (NYM)-50 troy oz.; $ per troy oz. Oct 2.392 2.419 2.349 2.363 –.043 54,046 Wheat (MPLS)-5,000 bu.; cents per bu. March .8267 .8299 .8260 .8278 –.0001 200,293
Dec 842.70 847.00 842.70 872.80 –8.30 2 March 501.00 504.00 t 497.25 497.75 –4.25 33,171 June … .8322 .8283 .8301 –.0002 744
April'16 874.00 880.30 870.90 873.20 –8.30 39,346 Agriculture Futures May 511.25 513.25 t 505.75 506.25 –5.00 14,184 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Silver (CMX)-5,000 troy oz.; $ per troy oz. Corn (CBT)-5,000 bu.; cents per bu. Cattle-Feeder (CME)-50,000 lbs.; cents per lb. March .7161 .7187 .7161 .7175 .0010 159,574
Dec 14.225 14.380 14.225 14.302 0.001 334 March 372.00 374.50 366.00 366.25 –5.75 692,396 Jan 155.075 160.125 153.600 158.650 3.150 11,516 June .7179 .7188 .7165 .7178 .0010 1,773
March'16 14.240 14.400 14.215 14.314 –0.001 125,766 May 378.00 380.75 372.25 372.50 –5.50 199,704 March 154.000 157.450 152.275 155.900 1.525 11,801 British Pound (CME)-£62,500; $ per £
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Oats (CBT)-5,000 bu.; cents per bu. March 1.4889 1.4911 1.4810 1.4817 –.0072 187,413
Cattle-Live (CME)-40,000 lbs.; cents per lb.
35.80 36.54 35.66 36.14 0.33 463,251 March 226.00 227.50 225.00 225.00 … 7,216 June 1.4903 1.4915 t 1.4817 1.4823 –.0072 422
Feb Dec 123.000 126.800 122.225 125.600 2.200 2,568
March 36.83 37.46 36.69 37.06 0.19 261,587 May 228.00 228.00 226.00 225.75 … 1,366 Feb'16 129.775 132.450 129.125 131.800 1.775 110,703 Swiss Franc (CME)-CHF 125,000; $ per CHF
March 1.0119 1.0185 1.0104 1.0163 .0035 50,562
Hogs-Lean (CME)-40,000 lbs.; cents per lb. June 1.0186 1.0230 1.0152 1.0211 .0036 115
Feb 56.600 57.500 56.600 56.850 .400 77,845
Australian Dollar (CME)-AUD 100,000; $ per AUD
Bonds | WSJ.com/bonds April 62.250 63.100 61.950 62.800
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
.800 39,972
March .7156 .7219 .7153 .7195 .0034 108,502
June .7160 .7188 .7126 .7165 .0033 299
Jan 269.40 269.40 264.60 268.60 –.90 1,266 Sept .7119 .7145 t .7110 .7137 .0033 29
Tracking Bond Benchmarks March 269.00 269.50 266.50 268.80
Milk (CME)-200,000 lbs., cents per lb.
.70 2,292 Dec .7088 .7110 s .7088 .7114 .0033 7
Mexican Peso (CME)-MXN 500,000; $ per MXN
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week Dec 14.53 14.53 14.50 14.53 … 4,150 Jan .05828 .05828 .05828 .05815 .00006 2
highs and lows for different types of bonds Jan'16 13.45 13.56 t 13.38 13.41 –.07 4,099 March .05803 .05817 .05771 .05782 .00003 138,180
Total return Yield (%), 52-Week Range l Latest
Cocoa (ICE-US)-10 metric tons; $ per ton. Euro (CME)-€125,000; $ per €
close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High March 3,229 3,239 3,176 3,197 –42 104,733 March 1.0938 1.1011 1.0928 1.0979 .0027 403,320
May 3,226 3,235 3,173 3,194 –41 44,905 June 1.0964 1.1040 1.0959 1.1010 .0028 2,284
1826.14 0.6 Broad market Barclays Aggregate 2.570 1.920 l 2.600 Coffee (ICE-US)-37,500 lbs.; cents per lb.
March 117.75 119.45 117.60 119.15 1.65 90,294 Index Futures
2469.90 -0.7 U.S. Corporate Barclays Capital 3.670 2.780 l 3.670 May 120.15 121.60 119.95 121.35 1.60 32,184 Mini DJ Industrial Average (CBT)-$5 x index
2416.58 1.1 Intermediate 3.080 2.210 l 3.080 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March 17199 17386 17110 17357 179 78,911
March 14.90 15.10 14.88 15.04 .07 391,627 June 17130 17302 17063 17285 188 55
3152.30 -4.5 Long term 5.040 4.030 l 5.060 May 14.55 14.71 14.49 14.65 .06 183,983 S&P 500 Index (CME)-$250 x index
519.02 1.0 Double-A-rated 2.650 1.980 l 2.690 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March 2020.60 2036.30 2007.80 2035.90 21.00 79,568
March 25.87 25.87 25.87 25.87 … 3,479 Mini S&P 500 (CME)-$50 x index
611.98 -2.3 Triple-B-rated 4.300 3.280 l 4.300 May 26.05 26.13 s 26.05 25.92 .03 2,207 March ... 2036.50 2007.25 2036.00 21.00 2,561,504
327.93 -5.4 High Yield Constrained Merrill Lynch 8.925 5.853 l 9.073 Cotton (ICE-US)-50,000 lbs.; cents per lb. June 2010.75 2029.50 2001.00 2029.00 20.75 7,987
March 63.32 63.70 63.06 63.16 –.16 128,422 Mini S&P Midcap 400 (CME)-$100 x index
276.35 -16.3 Triple-C-rated 18.317 10.017 l18.341 May 64.05 64.43 63.86 63.94 –.17 30,069 March 1379.90 1395.70 1374.30 1395.10 16.30 87,079
2353.21 -5.8 High Yield 100 7.958 5.016 l 8.056 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. June 1387.50 1387.50 s 1387.50 1388.80 16.30 n.a.
Jan 143.85 148.15 143.15 147.40 3.70 2,155 Mini Nasdaq 100 (CME)-$20 x index
302.24 -2.6 Global High Yield Constrained 8.434 5.894 l 8.519 143.10 147.00 143.00 145.55 2.15 10,241
March March ... 4594.5 4541.3 4591.0 28.0 307,464
264.32 1.2 Europe High Yield Constrained 5.307 3.550 l 5.732 June 4557.5 4583.5 4543.0 4586.8 29.0 255
Interest Rate Futures Mini Russell 2000 (ICE-US)-$100 x index
1582.24 1.1 U.S Agency Barclays 1.610 1.110 l 1.630 March 1124.30 1136.80 1116.90 1136.10 11.70 372,181
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
1429.85 1.3 10-20 years 1.410 0.940 l 1.420 March 156-110 156-150 155-000 155-020 –1-00.0 517,388 Mini Russell 1000 (ICE-US)-$100 x index
Treasury Notes (CBT)-$100,000; pts 32nds of 100% March 1119.60 1126.90 1114.60 1128.20 12.70 7,178
3013.63 -0.2 20-plus years 3.280 2.490 l 3.370
March 126-165 126-210 126-050 126-055 –12.5 2,499,959 U.S. Dollar Index (ICE-US)-$1,000 x index
1903.09 1.4 Mortgage-Backed Barclays 2.750 2.280 l 2.900 June 125-250 125-250 125-250 125-205 –12.5 67 March 98.50 98.52 98.01 98.24 –.13 66,247
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% June 98.56 98.59 98.10 98.33 –.13 1,049
1884.12 1.3 Ginnie Mae (GNMA) 2.640 2.170 l 2.860 Dec 119-057 119-057 119-000 119-002 –7.0 47,565
1112.22 1.4 Fannie mae (FNMA) 2.770 2.300 l 2.910 March'16 118-222 118-247 118-160 118-162 –7.0 2,266,613 Source: SIX Financial Information
1711.90 1.4 Freddie Mac (FHLMC) 2.810 2.310 l 2.930
499.05 2.9 Muni Master Merrill Lynch 1.761 1.475 l 2.099
347.97 3.2 7-12 year 1.806 1.498 l 2.144 Dividend Changes
385.77 3.7 12-22 year 2.164 1.924 l 2.636 Dividend announcements from December 22.
366.56 4.7 22-plus year 2.848 2.542 l 3.351 Amount Payable / Amount Payable /
Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
2236.31 -1.2 Yankee Barclays 3.060 2.390 l 3.110
Increased Direxion SC Bull 1.25X LLSC .09738 Dec30 /Dec24
522.35 1.4 Global Government J.P. Morgan 1.560 1.240 l 1.780 Felcor Lodging Trust FCH 3.3 .06 /.04 Q Jan29 /Jan15
ProShares MSCI Eur Div EUDV .14611 Dec31 /Dec24
ProShares S&P 500 Ex-Fin SPXN .22504 Dec31 /Dec24
755.05 3.8 Canada 1.650 1.380 l 2.040 Hanmi Financial HAFC 2.3 .14 /.11 Q Jan15 /Dec31
ProShares S&P 500 Ex-Tech SPXT .2339 Dec31 /Dec24
Riverview Bancorp RVSB 1.6 .0175 /.015 Q Jan19 /Jan05
358.08 1.8 EMU 1.216 0.724 l 1.609 ProShares S&P 500 xEnergy SPXE .21837 Dec31 /Dec24
Initial ProShares S&P500 xHlth Cr SPXV .23769 Dec31 /Dec24
683.83 0.8 France 1.050 0.490 l 1.360 Reality Shares DIVS ETF DIVY .46079 Dec29 /Dec24
Direxion Dev Bull 1.25x LLDM .45184 Dec30 /Dec24
496.03 0.7 Germany 0.700 0.160 l 1.040 Direxion EM Bull 1.25X LLEM .46856 Dec30 /Dec24 Funds and investment companies
278.08 1.2 Japan 0.670 0.570 l 0.890 Direxion MSCI Eur Curr Hd HEGE .86162 Dec30 /Dec24
1st Tr Sr Fltg Rt Fd II FCT 7.3 .075 M Jan15 /Jan06
Direxion MSCI Japan Curr HEGJ .6383 Dec30 /Dec24
544.44 0.7 Netherlands 0.830 0.240 l 1.130 Alpine Glbl Dynamic Div AGD 8.9 .065 M Jan29 /Jan22
Alpine Tot Dyn Div AOD 9.1 .0575 M Jan29 /Jan22
830.12 1.7 U.K. 2.230 1.730 l 2.480 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
668.26 0.9 Emerging Markets ** 6.740 5.679 l 6.817 semiannual; S2:1: stock split and ratio; SO: spin-off. Continued on Page C9

*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In U.S. - dollar terms Euro-zone bonds
** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan

Global Government Bonds: Mapping Yields

Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/ 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
0.875 U.S. 2 0.977 s 0.961 0.921 0.663

GREAT
l
2.250 10 2.240 s l 2.191 2.264 2.160
4.250 Australia 2 2.021 s l 2.018 2.056 2.284 104.4 105.7 162.1
3.250 10 2.741 t l 2.761 2.912 2.863 50.1 57.0 70.3

EFFORTS
4.250 France 2 -0.289 s l -0.301 -0.297 -0.034 -126.6 -126.1 -69.6
1.000 10 0.953 s l 0.896 0.818 0.886 -128.8 -129.5 -127.5
0.500 Germany 2 -0.344 s l -0.357 -0.385 -0.085 -132.1 -131.7 -74.8
1.000 10 0.602 s l 0.552 0.483 0.603 -163.8 -163.9 -155.7
4.500
2.000
Italy 2
10
0.136 s
1.648 s
l
l
0.132
1.593
0.062
1.394
0.560 -84.1
1.911 -59.2
-82.8
-59.8
-10.2
-25.0
can lead to great success
0.100 Japan 2 -0.048 t l -0.037 -0.026 -0.034 -102.5 -99.7 -69.6
0.300 10 0.276 s l 0.274 0.315 0.339 -196.5 -191.7 -182.1
0.500 Spain 2 0.126 t l 0.127 0.038 0.455 -85.2 -83.4 -20.7
2.150 10 1.802 s l 1.786 1.632 1.665 -43.8 -40.5 -49.6
1.000 U.K. 2 0.630 s l 0.588 0.619 0.425 -34.7 -37.3 -23.7
FIDELITY INVESTMENTS IS HONORED TO CONGRATULATE
2.000 10 1.879 s l 1.818 1.878 1.825 -36.1 -37.3 -33.5
Source: Tullett Prebon
DYNASTY FINANCIAL PARTNERS ON THEIR FIVE-YEAR
Corporate Debt
Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in ANNIVERSARY AS DYNASTY CONTINUES TO HELP ADVISORS
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… REALIZE THEIR ENTREPRENEURIAL DREAMS.
Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg

Williams Partners WPZ 3.350 Aug. 15, ’22 560 –89 522 25.91 7.11
Glencore Funding GLENLN 2.500 Jan. 15, ’19 704 –57 n.a. ... ... WE WISH DYNASTY AND THEIR NETWORK PARTNER FIRMS
Freeport–McMoRan Oil & Gas FCX 6.500 Nov. 15, ’20 1679 –38 n.a. 6.42 2.88
Vector VGR 7.750 Feb. 15, ’21 479 –36 455 23.56 1.03
CONTINUED SUCCESS IN POWERING INDEPENDENCE AND
JPMorgan Chase JPM 7.900 April 30, ’49 402 –34 466 65.68 0.21
Marathon Oil MRO 2.700 June 1, ’20 402 –33 n.a. 12.69 1.36
American Express AXP 2.375 May 26, ’20 58 –25 84 68.85 0.66 TRANSFORMING THE ADVISOR-CLIENT RELATIONSHIP.
Continental Resources CLR 4.500 April 15, ’23 806 –22 613 21.42 7.10

…And spreads that widened the most

Southwestern Energy SWN 4.100 March 15, ’22 1103 27 885 5.88 0.17
Oneok Partners OKS 6.200 Sept. 15, ’43 535 19 n.a. 28.00 3.32
Bank of America BAC 3.950 April 21, ’25 202 17 210 17.08 0.65 To learn more about how we support financial advisors,
Nucor NUE 5.850 June 1, ’18 155 17 n.a. 41.12 3.50
Amazon.com AMZN 2.600 Dec. 5, ’19 35 16 55 663.15 –0.20 call us at 800.735.3756 or visit fiws.fidelity.com.
Vodafone VOD 2.500 Sept. 26, ’22 144 12 132 31.41 0.24
Berkshire Hathaway Finance BRK 2.000 Aug. 15, ’18 20 11 n.a. ... ...
Enbridge ENBCN 4.000 Oct. 1, ’23 365 11 n.a. ... ...

High-yield issues with the biggest price increases…

Issuer Symbol Coupon (%) Maturity
Bond Price as % of face value
Current One-day change Last week
Stock Perfomance
Close ($) % chg
BE GREATER ®

Taseko Mines TKOCN 7.750 April 15, ’19 55.209 3.96 n.a. ... ...
Transocean RIG 6.800 March 15, ’38 52.500 3.50 52.475 12.55 3.55
Whiting Petroleum WLL 5.000 March 15, ’19 74.500 2.75 84.500 9.00 8.30
AK Steel AKS 7.625 May 15, ’20 40.250 2.68 38.250 2.30 9.00
PQ PQCOR 8.750 Nov. 1, ’18 96.180 2.68 98.750 ... ...
EP Energy EPENEG 9.375 May 1, ’20 60.250 2.50 70.500 ... ...
Informatica INFA 7.125 July 15, ’23 88.500 2.50 90.000 ... ... The service marks appearing herein are the property of FMR LLC, and may
Teck Resources TCKBCN 4.500 Jan. 15, ’21 51.500 2.50 47.500 ... ...
be registered.
…And with the biggest price decreases Dynasty Financial Partners is an independent company and is not affiliated
Denbury Resources DNR 6.375 Aug. 15, ’21 34.750 –5.69 42.000 2.04 7.94 with Fidelity Investments.
Lennar LEN 4.500 Nov. 15, ’19 100.000 –2.00 102.130 49.00 1.98 Clearing, custody, or other brokerage services may be provided by
Chemours CC 7.000 May 15, ’25 66.750 –1.75 71.250 5.73 2.87 National Financial Services LLC or Fidelity Brokerage Services LLC,
California Resources CRC 5.500 Sept. 15, ’21 30.500 –1.75 39.250 2.00 4.71
members NYSE, SIPC.
Halcon Resources HKUS 13.000 Feb. 15, ’22 32.750 –1.75 n.a. ... ...
Cliffs Natural Resources CLF 7.750 March 31, ’20 24.760 –1.74 27.250 1.59 2.58 © 2015 FMR LLC. All rights reserved.
Teekay TK 8.500 Jan. 15, ’20 74.500 –1.63 94.875 9.25 –4.05 746491.1.0
Bombardier BBDBCN 7.750 March 15, ’20 81.000 –1.50 82.250 ... ...
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C6 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
17417.27 s 165.65, or 0.96% Trailing P/E ratio * 16.72 16.84 2038.97 s 17.82, or 0.88% Trailing P/E ratio * 22.65 19.48 5001.11 s 32.19, or 0.65% Trailing P/E ratio * 22.75 24.72
High, low, open and close for each P/E estimate * 16.53 15.71 High, low, open and close for each P/E estimate * 17.19 17.15 High, low, open and close for each P/E estimate * 19.54 19.79
trading day of the past three months. Dividend yield 2.51 2.16 trading day of the past three months. Dividend yield 2.15 1.92 trading day of the past three months. Dividend yield 1.19 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 0.14967727343149 Session high

20000 2150 5100
DOWN t UP 65-day moving average
Session open Close

Close Open 19000 2100 4975

t

Session low
18000 2050 4850

65-day moving average

17000 2000 4725

16000 1950 4600

65-day moving average

15000 1900 4475

Bars measure the point change from session's open

14000 1850 4350
Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec.

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* 849,437,488 9,041,613
Industrial Average 17451.11 17242.86 17417.27 165.65 0.96 18312.39 15666.44 -3.4 -2.3 9.7 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 708,827,367 4,796,708
Transportation Avg 7543.18 7419.16 7526.77 111.38 1.50 9217.44 7364.04 -17.7 -17.6 12.1 Most-active issues in late trading Decl. volume* 129,248,665 4,034,356
Utility Average 573.71 563.91 572.50 5.05 0.89 652.11 541.97 -7.3 -7.4 7.8 Volume After Hours Issues traded 3,234 379
Company Symbol (000) Last Net chg % chg High Low Advances 2,392 200
Total Stock Market 21084.31 20852.81 21045.56 180.92 0.87 22287.78 19528.72 -2.7 -1.8 12.3
SPDR S&P 500 SPY 11,291.0 203.85 0.350 0.172 213.54 199.40 Declines 755 162
Barron's 400 518.10 510.74 517.44 4.99 0.97 586.75 497.51 -4.8 -4.4 12.4
Energy Transfer Eqty ETE 8,246.7 11.97 0.110 0.927 11.97 11.86 Unchanged 87 17
Nasdaq Stock Market Bk of NY Mellon BK 5,589.7 40.99 unch. unch. 40.99 40.69 New highs 29 3
Nasdaq Composite 5007.77 4964.08 5001.11 32.19 0.65 5218.86 4506.49 4.9 5.6 18.3 Mkt Vectors Gold Miners GDX 5,067.9 13.69 0.010 0.07 13.83 13.65 New lows 65 18
4596.08 4560.54 28.70 4719.05 4016.32 8.3 Closing tick 343 14
Nasdaq 100 4589.26 0.63 7.2 19.9 Pfizer PFE 4,232.3 32.52 unch. unch. 32.63 32.45
Closing Arms† 0.72 0.90
iSh Curr Hd MSCI Eurozone HEZU 3,531.6 25.83 -0.040 -0.15 25.83 25.83
Standard & Poor's Block trades* 4,901 107
iShares Russell 2000 ETF IWM 3,166.7 113.44 0.09 0.079 113.70 111.19
500 Index 2042.74 2020.49 2038.97 17.82 0.88 2130.82 1867.61 -2.1 -1.0 12.5 Nasdaq NYSE Arca
Micron Technology MU 3,083.2 13.75 -0.860 -5.89 14.88 13.61
MidCap 400 1399.99 1381.35 1396.83 12.90 0.93 1549.44 1351.29 -4.4 -3.8 11.0 Total volume* 1,534,837,171 270,420,662
SmallCap 600 674.40 664.48 673.85 6.52 0.98 742.13 641.76 -2.8 -3.1 12.3 Percentage gainers… Adv. volume* 1,048,651,430 215,225,232
Decl. volume* 474,728,497 53,836,137
Other Indexes Celgene CELG 612.9 119.05 7.91 7.12 127.00 110.76
Issues traded 2,980 1,395
Russell 2000 1138.65 1123.67 1137.69 9.94 0.88 1295.80 1083.91 -5.4 -5.6 10.3 St. Jude Medical STJ 12.0 64.50 3.27 5.34 64.50 61.18
Advances 1,859 1,017
NYSE Composite 10132.58 10015.98 10112.40 89.37 0.89 11239.66 9601.42 -7.7 -6.7 6.2 RPX RPXC 10.6 11.00 0.49 4.66 11.00 10.51 Declines 1,038 357
Value Line 445.72 439.39 444.96 4.97 1.13 522.42 431.31 -11.7 -11.4 6.6 VelocityShares 3x Lg UWTI 866.5 3.86 0.11 2.93 6.95 3.63 Unchanged 83 21
NYSE Arca Biotech 3763.29 3707.00 3745.72 -5.22 -0.14 4431.87 3303.47 11.7 8.9 34.1
W&T Offshore WTI 5.3 2.14 0.06 2.88 2.14 2.06 New highs 32 …
New lows 98 15
NYSE Arca Pharma 539.57 534.87 538.83 3.21 0.60 605.94 509.74 1.1 1.1 13.3 ...And losers
Closing tick 75 127
KBW Bank 73.21 72.03 73.06 0.46 0.63 80.41 66.40 -2.5 -1.6 12.5 Micron Technology MU 3,083.2 13.75 -0.86 -5.89 14.88 13.61 Closing Arms† 0.81 0.76
PHLX§ Gold/Silver 46.01 45.10 45.36 0.02 0.05 82.07 43.21 -30.0 -34.1 -34.3 Ship Fin Intl SFL 10.7 15.50 -0.80 -4.91 16.30 15.50 Block trades* 6,219 1,169
PHLX§ Oil Service 158.78 153.84 157.98 4.41 2.87 224.32 153.12 -26.5 -25.1 -10.6 Supervalu SVU 18.1 6.60 -0.28 -4.07 6.88 6.60 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 669.52 661.74 667.11 0.98 0.15 746.08 559.59 -4.1 -2.9 20.0 CalAmp CAMP 31.5 18.72 -0.73 -3.75 20.57 18.72 †(TRIN) A comparison of the number of advancing and declining
18.22 16.60 -2.10 -11.23 40.74 11.95 -13.5 issues with the volume of shares rising and falling. An
CBOE Volatility 16.60 12.2 -2.4 Hanesbrands HBI 8.5 28.00 -1.09 -3.75 29.09 28.00 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

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

World The Global Dow 2319.05 17.06 0.74 –7.3 Amer Midstream Partners AMID 6.97 1.96 39.12 21.35 3.80 -65.2 NovaBay Pharmaceuticals NBY 2.66 -0.93 -25.91 26.25 1.63 -83.2
The Global Dow Euro 1991.17 5.78 0.29 2.3 Jaguar Animal Health JAGX 2.65 0.55 26.19 7.06 1.69 ... Steelcase SCS 14.55 -4.33 -22.93 20.45 14.35 -19.5
DJ Global Index 305.76 1.93 0.64 –4.7 Southcross Engy Partners SXE 3.00 0.61 25.52 16.50 2.28 -79.1 Amtech Sys ASYS 6.42 -1.89 -22.74 12.93 4.12 -22.6
World DJ Global ex U.S. 207.75 0.81 0.39 –7.7 Sorrento Therapeutics SRNE 9.79 1.98 25.35 26.80 7.18 15.0 Great Basin Scientific GBSN 1.62 -0.47 -22.49 366.00 1.50 -99.0
Dominion Diamond DDC 10.06 1.84 22.38 20.30 7.27 -42.3 SunEdison SUNE 5.31 -1.43 -21.22 33.45 2.55 -72.8
Americas DJ Americas 485.93 4.09 0.85 –4.2
Sao Paulo Bovespa 43469.52 0.62 –13.1 pSivida PSDV 4.49 0.79 21.35 5.81 3.23 11.4 Banco Bradesco Ord ADR BBDO 5.10 -1.32 -20.54 11.79 4.81 -51.9
Brazil 269.56
13082.86 0.37 –10.6
Crestwood Equity Partners CEQP 19.16 2.84 17.40 84.60 13.14 -73.4 Vestin Realty Mortgage I VRTA 1.97 -0.36 -15.45 5.94 1.78 -48.3
Canada S&P/TSX Comp 48.48
0.39 Intrepid Potash IPI 3.09 0.44 16.60 15.09 2.63 -77.6 Ever-Glory Intl Group EVK 2.15 -0.36 -14.34 6.94 1.87 -62.3
Mexico IPC All-Share 43328.72 168.11 0.42
0.20 Plains GP Holdings Cl A PAGP 8.82 1.24 16.36 29.87 7.18 -64.6 Dicerna Pharmaceuticals DRNA 12.28 -1.98 -13.88 27.33 7.61 -25.4
Chile Santiago IPSA 2886.11 5.73 –8.8
TimkenSteel TMST 8.61 1.20 16.19 37.47 7.15 -74.9 SunRun RUN 11.60 -1.80 -13.43 14.95 6.36 ...
Europe Stoxx Europe 600 356.87 –0.28 –0.08 4.2
Strongbridge Biopharma SBBP 7.26 0.94 14.78 14.30 5.00 ... Capricor Therapeutics CAPR 3.28 -0.47 -12.53 10.68 3.22 -90.8
Euro zone Euro Stoxx 338.77 0.22 0.06 6.0
Tronox Cl A TROX 4.07 0.52 14.65 24.44 2.98 -82.9 Empire Resorts NYNY 4.33 -0.52 -10.72 8.03 3.68 -42.8
Belgium Bel-20 3614.72 0.49 0.01 10.0
Peabody Energy BTU 8.49 1.08 14.57 123.45 7.06 -92.9 ProSharesUltVIXST UVXY 27.65 -3.11 -10.11 170.05 23.83 -73.4
France CAC 40 4567.60 2.43 0.05 6.9 GlobeImmune GBIM 4.78 0.60 14.35 10.95 1.43 -34.4 Acacia Research ACTG 3.96 -0.43 -9.79 18.71 3.82 -78.3
Germany DAX 10488.75 –9.02 –0.09 7.0 Trinity Place Holdings TPHS 6.00 0.75 14.29 8.40 5.11 -2.4 China Hsg Land Dev CHLN 2.91 -0.31 -9.63 5.70 1.01 21.3
Israel Tel Aviv 1488.48 –10.46 –0.70 1.6
Italy FTSE MIB 21060.13 –39.19 –0.19 10.8
Netherlands AEX 430.97 2.49 0.58 1.5 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 9415.60 49.80 0.53 –8.4 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 492.81 –1.53 –0.31 4.0
Switzerland Swiss Market 8515.82 –28.53 –0.33 –5.2 SunEdison SUNE 155,220 213.8 5.31 -21.22 33.45 2.55 Hennessy Cap Acqn II HCAC 603 5250 9.61 0.52 9.70 9.52
6083.10 0.80 –7.4 SPDR S&P 500 SPY 99,528 -18.6 203.50 0.91 213.78 182.40 ProShares DJ Brookfield TOLZ 307 4444 35.46 1.31 45.40 24.42
U.K. FTSE 100 48.26
Bank Of America BAC 55,397 -33.6 17.08 0.65 18.48 14.60 Vanguard Russ 1000 Value VONV 696 3054 85.12 0.91 93.09 74.50
Asia-Pacific DJ Asia-Pacific TSM 1373.65 5.17 0.38 –3.7 iPath SP 500 VIX Sht Tm VXX 54,884 -16.1 19.74 -4.91 37.35 15.48 UBS AG E-TRACS DJ UBS DJCI 238 2473 13.95 -0.78 19.87 13.75
Australia S&P/ASX 200 5116.70 7.70 0.15 –5.4 Ford Motor F 49,673 75.1 14.20 3.42 16.74 10.44 SPDR S&P Emerg Europe GUR 142 1998 22.51 0.35 33.07 20.31
China Shanghai Composite 3651.77 9.30 0.26 12.9
iShares MSCI Emg Markets EEM 48,128 -25.3 32.66 0.80 44.19 30.00 Northeast Community NECB 118 1974 7.10 -4.70 7.94 6.60
Hong Kong Hang Seng 21830.02 38.34 0.18 –7.5
Finl Select Sector SPDR XLF 45,169 7.9 23.75 0.93 25.62 18.52 iSh MSCI Gl Silver Miners SLVP 338 1919 5.75 1.05 10.25 5.52
India S&P BSE Sensex 25590.65 –145.25 –0.56 –6.9
General Electric GE 41,656 -54.7 30.49 0.30 31.23 19.37 Gl Partner Acquisition GPAC 116 1751 9.84 0.61 10.19 9.45
Japan Nikkei Stock Avg 18886.70 –29.32 –0.16 8.2
Freeport-McMoRan FCX 40,728 1.9 6.42 2.88 23.97 6.08 BLDRS Emerg Mkts 50 ADS ADRE 175 1701 29.57 1.19 38.97 19.55
Singapore Straits Times 2852.97 7.42 0.26 –15.2 iShares MSCI Japan ETF EWJ 38,650 0.5 12.14 0.75 13.35 10.89 Bancroft Fund BCV 155 1335 18.07 1.23 21.91 17.51
South Korea Kospi 1992.56 11.37 0.57 4.0
* 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 8292.74 10.57 0.13 –10.9 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group

Consumer Rates and Returns to Investor Benchmark

Treasury Yields
yield curve Forex Race Currencies
and
Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs.
U.S.-dollar foreign-exchange rates in late New York trading
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Money market accounts US$vs, US$vs,
A consumer rate against its 20% Tues YTDchg Tues YTDchg
benchmark over the past year 5.00% Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Bankrate.com avg†: 0.27% 15
4.00 10 s Americas Thailand baht .02772 36.070 9.6
American Express Bank, FSB 0.90% WSJ Dollar index
5 Vietnam dong .00004434 22552 5.5
1.00% New York, NY Argentina peso .0773 12.9420 52.9
866-297-0747 3.00 Europe
Money market 0 Brazil real .2506 3.9899 50.1
account yields Dime Savings Bank of Williamsburgh 1.10% One year ago
0.50 t –5 s Yen Canada dollar .7183 1.3922 19.8 Czech Rep. koruna .04055 24.662 7.9
t New York, NY 800-321-3463 2.00
–10 Chile peso .001435 697.10 14.9 Denmark krone .1468 6.8099 10.6
iGObanking.com 1.10% 1.00 –15 Colombia peso .0003021 3309.73 39.3 Euro area euro 1.0958 .9126 10.4
0.00 Tuesday
t
t –20 s Euro Ecuador US dollar 1 1 unch Hungary forint .003490 286.51 9.5
Lake Success, NY 888-432-5890
Federal-funds 0.00 Mexico peso .0582 17.1900 16.6 Iceland krona .007731 129.35 1.4
–0.50 Northeast Bank 1.10% –25
target rate Peru new sol .2948 3.392 13.6 Norway krone .1147 8.7187 17.0
1 3 6 1 2 3 5 710 30 2015
Portland, ME 800-284-5989 Uruguay peso .03352 29.8300 24.2 Poland zloty .2578 3.8785 9.5
–1.00 month(s) years Venezuela b. fuerte .158603 6.3051 0.2 Russia ruble .01404 71.240 17.7
J FMAM J J A S O N D Radius Bank 1.10%
maturity Asia-Pacific Sweden krona .1187 8.4254 7.9
2015 Boston, MA 800-242-0272 Switzerland franc 1.0131 .9871 –0.7
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7237 1.3818 12.9
Turkey lira .3412 2.9309 25.5
China yuan .1544 6.4757 4.4
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0429 23.2830 47.2
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1290 7.7523 unch
UK pound 1.4828 .6744 5.1
India rupee .01510 66.244 5.1
Federal-funds rate target 0.25-0.50 0-0.25 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000733 13651 9.8 Middle East/Africa
Prime rate* 3.50 3.25 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008260 121.07 1.1 Bahrain dinar 2.6521 .3771 unch
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002918 342.70 87.4 Egypt pound .1278 7.8268 9.5
Libor, 3-month 0.59 0.52 0.25 l 0.59 0.28
Macau pataca .1261 7.9280 –0.8 Israel shekel .2570 3.8916 –0.1
Money market, annual yield 0.27 0.26 0.25 l 0.44 -0.24 Treasury, Ryan ALM 1411.370 1.874 1.879 1.928 1.305 1.752 1.441
Malaysia ringgit .2322 4.3065 22.9 Kuwait dinar 3.2945 .3035 3.6
Five-year CD, annual yield 1.38 1.38 1.37 l 1.53 0.02 10-yr Treasury, Ryan ALM 1691.741 2.239 2.269 2.480 1.669 0.156 1.379 New Zealand dollar .6807 1.4691 14.5 Oman sul rial 2.5963 .3852 unch
30-year mortgage, fixed† 3.93 3.93 3.71 l 4.22 0.34 DJ Corporate 341.245 3.430 3.450 3.458 2.633 0.643 1.946 Pakistan rupee .00953 104.900 4.1 Qatar rial .2746 3.641 unch
15-year mortgage, fixed† 3.17 3.15 2.94 l 3.42 0.20 Aggregate, Barclays Capital 1826.140 2.570 2.580 2.600 1.920 0.682 1.486 Philippines peso .0212 47.202 5.5 Saudi Arabia riyal .2665 3.7523 unch
Jumbo mortgages, $417,000-plus† 4.46 4.48 4.00 l 4.97 0.34 Singapore dollar .7122 1.4041 5.9 South Africa rand .0660 15.1592 31.2
High Yield 100, Merrill Lynch 2353.207 7.958 7.817 8.056 5.016 –5.834 1.145 South Korea won .0008534 1171.72 7.1
Five-year adj mortgage (ARM)† 3.86 3.40 3.14 l 4.00 0.81 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1903.090 2.750 2.790 2.900 2.280 1.492 2.016 Sri Lanka rupee .0069896 143.07 9.0
New-car loan, 48-month 3.23 3.20 2.71 l 3.33 0.41 Taiwan dollar .03045 32.840 3.8 WSJ Dollar Index 89.95 –0.17–0.19 8.35
Muni Master, Merrill 499.049 1.761 1.806 2.099 1.475 3.188 2.831
HELOC, $30,000 4.59 4.55 4.24 l 4.71 -0.05
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 668.263 6.740 6.691 6.817 5.679 0.775 –0.102 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 445.54 -2.95 -0.66 584.70 441.41 -23.11 -20.52

ONLINE
WSJ
Reuters-Jefferies CRB 171.95 -0.47 -0.27 238.61 170.70 -27.94 -25.22
Crude oil, $ per barrel 36.14 0.33 0.92 61.43 34.73 -36.73 -32.16
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 1.888 -0.023 -1.20 3.23 1.76 -40.46 -34.65
ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at
Gold, $ per troy oz. 1074.80 -7.10 -0.66 1300.70 1050.80 -8.75 -9.22
WSJMarkets.com
THE WALL STREET JOURNAL. Wednesday, December 23, 2015 | C7

BIGGEST 1,000 STOCKS

How to Read the Stock Tables Net Net Net Net Net Net
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
securities. Prices are composite quotations that include primary market trades as well as trades InfosysADR INFY 16.79 0.23 NokiaADR NOK 7.22 0.13 SmithAO AOS 76.35 0.37 WestlakeChemical WLK 54.06 0.57 CostcoWholesale COST 161.23 1.84 t NetApp NTAP 26.23 -1.37
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock
Exchange, ISE and BATS. Ingersoll-Rand IR 54.23 1.09 NomuraHoldingsADR NMR 5.61 -0.02 Smith&NephewADR SNN 34.62 0.37 WestpacBankingADR WBK 23.17 0.01 Ctrip.comIntlADR CTRP 48.53 -0.17 NeteaseADR NTES 181.42 1.42
The list comprises the 1,000 largest companies based on market capitalization. Ingredion INGR 95.82 1.42 t Nordstrom JWN 50.81 0.76 Smucker SJM 122.97 -0.03 WestRock WRK 44.04 -0.44 DISHNetworkClA DISH 57.70 0.12 Netflix NFLX 116.24 -0.39
Underlined quotations are those stocks with large changes in volume compared with the issue’s ICE ICE 250.09 2.65 NorfolkSouthern NSC 86.07 1.99 SnapOn SNA 170.29 1.82 Weyerhaeuser WY 30.15 0.46 Dentsply XRAY 60.58 0.60 NewsCorpClA NWSA 13.31 -0.05
average trading volume. InterContinentlADR IHG 38.87 0.32 NortelInversoraADR NTL 15.81 -0.38 SOQUIMICH ADR SQM 17.95 0.48 Whirlpool WHR 146.94 0.36 Dexcom DXCM 82.57 0.94 NewsCorpClB NWS 13.85 0.02
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous IBM IBM 137.93 2.43 NorthrpGrum NOC 189.37 0.36 SonyADR SNE 24.30 -0.05 WhiteWaveFoods WWAV 39.43 0.51 DiscoveryCommsA DISCA 26.87 0.59 NrthnTrust NTRS 72.04 0.89
closing price was $2 or higher. IntFlavor IFF 119.51 2.28 Novartis ADR NVS 84.85 0.17 Southern SO 46.45 0.22 Williams WMB 22.57 0.57 DiscoveryCommsC DISCK 25.53 0.40 NorwegianCruise NCLH 58.84 -0.20
Footnotes: listing standards vj-In bankruptcy or InternationalPaper IP 37.65 0.35 NovoNordiskADR NVO 56.97 -0.15 SoCopper SCCO 24.87 0.42 WilliamsPartners WPZ 25.91 1.72 DollarTree DLTR 77.86 0.96 NuanceComms NUAN 20.16 -0.02
s-New 52-week high. lf-Late filing receivership or being Interpublic IPG 23.29 0.36 Nucor NUE 41.12 1.39 SowestAir LUV 43.54 0.17 WillmSnoma WSM 59.00 0.54 DunkinBrands DNKN 42.78 -0.26 NVIDIA NVDA 32.93 0.03
t-New 52-week low. q-Temporary exemption from reorganized under the
dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities
IronMountain IRM 27.10 0.14 NuSTAREnergy NS 37.39 1.86 SpectraEnergy SE 22.85 0.40 WillisGrp WSH 46.32 ... s Dyax DYAX 37.69 0.03 OReillyAuto ORLY 253.75 0.02
recent four quarters. t-NYSE bankruptcy assumed by such companies. t IsraelChemicals ICL 4.10 -0.01 OGEEnergy OGE 26.37 0.41 SpectraEnergyPtrs SEP 43.02 0.31 WiproADR WIT 11.80 0.10 E Trade ETFC 29.22 0.58 OldDomFrght ODFL 58.72 1.26
FD-First day of trading. v-Trading halted on primary ItauUnibancoADR ITUB 6.62 0.13 ONEOKPartners OKS 28.00 0.90 SpectrumBrndsHldgs SPB 100.79 0.66 WooriBankADR WF 23.20 0.21 EastWestBancorp EWBC 41.48 0.12 OpenText OTEX 48.67 0.87
h-Does not meet continued market. JPMorganChase JPM 65.68 0.14 OccidentalPetrol OXY 66.98 0.84 SpiritAeroSystemsA SPR 48.02 -0.36 Workday WDAY 79.24 0.69 eBay EBAY 27.89 0.30 Paccar PCAR 47.49 1.72
JacobsEngineering JEC 41.98 1.04 Och-ZiffCapMgmt OZM 6.62 0.01 Sprint S 3.74 0.11 WyndhamWorldwide WYN 72.04 0.91 ElectroArts EA 69.07 0.36 PacWestBncp PACW 43.30 0.35
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and JamesHardieADR JHX 11.95 0.23 OldRepublic ORI 18.60 0.33 StJudeMedical STJ 61.23 0.27 XL Group XL 39.10 1.20 EndoInternational ENDP 62.61 1.45 PaneraBreadClA PNRA 194.37 2.94
changes in the closing prices from 4 p.m. the previous day. Jarden JAH 56.71 -0.66 OmegaHlthcr OHI 34.23 0.20 StanCorpFinancial SFG 113.71 -0.09 XcelEnergy XEL 35.33 0.24 Equinix EQIX 296.93 1.19 Paychex PAYX 52.71 0.11
Tuesday, December 22, 2015 Net Net JohnsJohns JNJ 102.71 1.13 OmnicomGroup OMC 75.41 1.02 StanleyBlDck SWK 105.74 1.16 Xerox XRX 10.70 0.40 EricssonADR ERIC 9.58 0.07 PayPalHoldings PYPL 36.81 0.73
Stock Sym Close Chg Stock Sym Close Chg JohnsonControls JCI 39.66 0.42 OneMainHoldings OMF 40.65 0.22 StrwdHtlRsrt HOT 69.32 3.18 Xylem Inc. XYL 36.50 0.36 Expedia EXPE 127.52 1.94 People'sUnitedFin PBCT 16.18 0.16
Net
Stock Sym Close Chg JonesLangLaSalle JLL 158.08 2.56 OpkoHealth OPK 9.94 -0.26 StarwoodPrTr STWD 21.14 0.38 YPFADR YPF 15.99 0.07 ExpeditrInt EXPD 46.00 0.76 PilgrimPride PPC 22.31 0.39
BosSci BSX 18.49 0.22 EatonCorp.PLC ETN 51.81
1.10 JoyGlobal JOY 13.36 0.99 Oracle ORCL 36.59 0.17 StateSt STT 66.40 0.63 YanzhouCoalADR YZC 4.69 0.05 ExpressScriptsHldg ESRX 86.67 -0.48 Premier PINC 34.25 0.43
NYSE BristolMyers BMY 68.31 0.27 Ecolab ECL 114.42
1.20 JuniperNetworks JNPR 27.51 0.26 OrangeADR ORAN 16.65 0.12 StatoilADR STO 13.64 0.22 YoukuTudouADR YOKU 27.06 0.04 F5Networks FFIV 97.44 0.05 PricelineGroup PCLN 1277.49 1.78
BrixmorPropertyGrp BRX 25.51 0.09 EcopetrolADR EC 0.14 7.02 KARAuctionServices KAR 36.84 0.02 s OrbitalATK OA 90.05 -0.67 Steris STE 74.01 2.83 YumBrands YUM 73.00 -0.40 FacebookClA FB 105.51 0.74 Qiagen QGEN 27.03 0.24
ABBADR ABB 17.74 0.19 BdridgeFnlSol BR 54.18 0.32 EdisonInt EIX 59.53
0.60 KBFinancialGrpADR KB 28.82 0.01 OrixADR IX 70.21 0.57 STMicroelectronics STM 6.70 0.05 ZayoGroupHoldings ZAYO 26.62 0.39 Fastenal FAST 40.08 1.24 Qorvo QRVO 52.41 -0.94
ACE ACE 117.23 1.99 BrookfieldMgt BAM 31.50 0.25 EdwardsLife EW 79.30
0.34 KKR KKR 15.71 -0.14 OwensCorng OC 46.52 0.43 Stryker SYK 92.73 1.31 ZimmerBiomet ZBH 101.73 1.50 FfthThrd FITB 20.06 0.20 Qualcomm QCOM 49.06 0.30
ADTCorp. ADT 33.38 0.11 BrookfieldInfr BIP 37.68 0.33 Embraer ADR ERJ 29.18
0.55 KTADR KT 12.38 0.04 PG&E PCG 53.21 0.15 SumitomoMitsADR SMFG 7.51 0.05 Zoetis ZTS 47.72 0.38 FirstSolar FSLR 64.99 -0.75 QunarCaymanIslADR QUNR 53.43 1.05
AES AES 9.29 0.13 BrownFormanClA BF/A 112.23 2.83 EmersonElectric EMR 46.85
0.97 KSCitySo KSU 71.89 1.76 PNC FnlSvcs PNC 94.57 0.11 SunLifeFinancial SLF 31.06 0.08 Fiserv FISV 92.94 0.56 RandgoldRscsADR GOLD 60.87 0.79
Aflac AFL 59.28 0.80 BrownFormanClB BF/B 102.11 1.59 EmpresaNacADR EOC 36.71
0.41 s Kellogg K 72.19 1.14 POSCOADR PKX 37.25 1.48 SuncorEnergy SU 25.75 0.10 NASDAQ FlextronInt FLEX 11.06 0.16 RegenPharm REGN 528.34 -4.21
AGLResources GAS 62.80 -0.10 BuckeyePartners BPL 61.52 3.01 EnbridgePtnr EEP 21.85
0.49 KEY 13.00 0.16 PPG 98.76 1.53 SunocoLgst SXL 24.43 1.96 FTNT 31.54 -0.12
AMCNetworks A AMCX 76.52 0.32 FrontierComms FTR 4.65 0.01 RossStores ROST 54.31 0.50
KeyCp PPG Ind Fortinet
AT&T T 34.41 0.32 Bunge BG 66.86 1.22 Enbridge ENB 31.98
0.80 KeysightTechs KEYS 28.56 0.45 PPL PPL 33.81 0.43 SunTrustBanks STI 42.80 0.35 RyanairHoldingsADR RYAAY 86.25 0.15
CBRE Group CBG 34.30 0.38 t Encana t PVH Corp. PVH 73.12 SynchronyFinancial SYF 30.21 Ansys ANSS 91.85 0.76 Garmin GRMN 36.26 0.71
AbbottLabs ABT 44.48 0.44 ECA 4.67
-0.25 KilroyRealty KRC 62.94 -0.21 0.23 0.48
CBS/A 51.75 0.40 s KimberlyClark KMB 126.37 SyngentaADR SYT 78.46 ARMHoldingsADR ARMH 45.92 -0.04 GileadSciences GILD 102.86 0.23 SBACommunications SBAC 101.68 0.29
ABBV 57.59 1.39 EngyTrnsfrEqty ETE 11.86
0.09 1.45 PackCpAm PKG 62.70 1.78 2.18
ASMLHolding ASML 90.40 1.17 Goodyear GT 32.29 0.41 SEIInvestments SEIC 51.87 0.26
AbbVie CBSClA
AccentureClA ACN 103.76 0.77 CBS 46.61 0.82 EnergyTransfer ETP 30.67
2.26 KimcoRealty KIM 26.12 0.03 PaloAltoNetworks PANW 181.65 -0.46 SYY 41.27 0.41
ActivisionBliz ATVI 39.21 0.47 Grifols ADR GRFS 32.30 0.23 SS&CTechs SSNC 67.78 1.42
CBSClB Sysco
AcuityBrands AYI 238.01 4.89 CFIndustries CF 42.74 1.42 ERF 3.06
-0.08 KinderMorgan KMI 15.32 0.18 ParkerHannifin PH 96.49 2.31 TEConnectivity TEL 64.39 0.78
CGI Gp A GIB 39.79 -0.12
Enerplus
TGNA 25.88 AdobeSystems ADBE 93.82 2.20 HDSupplyHoldings HDS 29.50 0.66 SVBFinancialGroup SIVB 119.80 0.03
AdvanceAuto AAP 147.83 -1.76 EnersisADR ENI 12.31
-0.21 KingDigitalEnt KING 17.90 -0.01 PartnerRe PRE 139.25 0.03 TEGNA 0.03 Sabre SABR 27.91 -0.44
CIT 40.15 -0.15 TU 27.70 AkamaiTechnologies AKAM 52.98 0.30 Hasbro HAS 66.77 1.46 SanDisk
AdvSemiEnggADR ASX 5.68 0.14 CIT Grp EnLinkMidstream ENLK 15.45
0.74 Kohl's KSS 47.07 1.36 PearsonADR PSO 11.03 -0.06 TELUS 0.16 SNDK 74.67 0.13
AegonADR AEG 5.61 0.03 CMSEnergy CMS 35.69 0.10 Entergy ETR 67.68
1.50 KoninklijkePhilADR PHG 25.67 0.26 PembinaPipeline PBA 21.57 0.19 TERNIUMADR TX 12.65 0.60 AlexionPharm ALXN 187.07 2.00 HenrySchein HSIC 154.75 0.86 SeagateTechnology STX 35.45 0.75
AerCapHoldings AER 41.81 0.40 CNAFinancial CNA 35.08 0.35 EntPdtsPtnr EPD 24.72
0.50 KoreaElcPwrADR KEP 21.61 0.40 Pentair PNR 49.26 0.62 TJX TJX 70.40 0.79 AlignTechnology ALGN 65.42 1.21 Hologic HOLX 38.79 -0.14 SeattleGenetics SGEN 42.51 0.40
Aetna AET 108.91 -0.81 CNOOCADR CEO 102.23 0.67 Equifax EFX 111.64
0.65 Kroger KR 42.10 0.89 PepcoHoldings POM 26.14 0.28 TableauSoftware DATA 93.20 4.14 Alkermes ALKS 76.30 -1.18 JBHunt JBHT 72.17 1.10 ShireADR SHPG 196.48 1.26
AffiliatedManagers AMG 157.92 3.69 CRHADR CRH 28.56 0.13 s EquityLife ELS 65.35
-0.16 KyoceraADR KYO 46.03 -0.11 PepsiCo PEP 99.80 1.18 TaiwanSemiconADR TSM 23.06 0.11 AlnylamPharm ALNY 86.52 -1.49 HuntgBcsh HBAN 10.98 0.14 SignatureBank SBNY 151.40 -0.25
CVSHealth CVS 98.27 2.32 LB 96.53 1.58 PerkinElmer PKI 52.63 1.08 TGT 72.61 0.90 AlphabetClA GOOGL 767.13 6.33 IACInteractv IACI 61.25 0.74 SiliconwareADR SPIL 7.96 0.15
AgilentTechs A 41.22 0.39 EqResdntl EQR 80.03
-0.05 LBrands Target
AgnicoEagleMines AEM 26.48 -0.25 Cablevision CVC 31.77 0.93 EssexProp ESS 234.38
-0.72 LGDisplayADR LPL 10.97 0.16 Perrigo PRGO 145.27 0.99 TaroPharm TARO 156.86 2.01 AlphabetClC GOOG 750.00 2.23 IdexxLab IDXX 72.20 0.86 SiriusXMHoldings SIRI 4.02 0.02
CabotO&G COG 16.52 0.28 s Altera ALTR 53.93 0.01 IPG Photonics IPGP 89.55 0.38 SironaDental SIRO 109.02 1.46
Agrium AGU 90.85 1.56 EsteeLaudr A EL 88.65
0.44 L-3Communications LLL 118.48 1.22 PetroChinaADR PTR 66.36 -0.29 TataMotorsADR TTM 28.47 -0.16
AirProducts&Chems APD 131.55 1.60 Calpine CPN 13.48 -0.16 EvrstReGrp RE 184.68
2.25 LabCpAm LH 124.34 -0.14 PetroleoBrasilADR PBR 4.28 0.17 TecoEnergy TE 26.52 0.13 Amazon.com AMZN 663.15 -1.36 IcahnEnt IEP 63.95 0.53 SkywrkSol SWKS 78.41 -0.01
CamdenPropertyTr CPT 75.55 -0.32 LasVegasSands LVS 42.93 0.89 PetroleoBrasilADRA PBR/A 3.36 0.07 TelecomItaliaADR TI/A 9.88 -0.01 Amdocs DOX 56.00 1.06 Illumina ILMN 186.98 0.14 SolarCity SCTY 51.32 -3.77
Airgas ARG 138.02 0.42 EversourceEnergy ES 50.69
0.62
Cameco CCJ 12.25 0.23 LAZ 45.28 0.64 PFE 32.52 0.06 12.34 0.05 Amerco UHAL 394.80 9.42 Incyte INCY 108.99 -3.91 Splunk
AlaskaAirGroup ALK 81.72 -0.78 Exelon EXC 27.52
0.09 Lazard Pfizer TelecomItaliaADR TI SPLK 54.37 -0.09
CameronIntl CAM 62.82 1.01 LearCorp LEA 124.56 1.39 PhilipMrrsIntl PM 87.66 1.04 TFX 131.76 0.80 AmericaMovilClAADR AMOV 14.49 0.13 Intel INTC 34.73 0.49 Staples
Albemarle ALB 54.31 2.85 s ExtrSpcStor EXR 89.03
-0.06 Teleflex SPLS 9.43 0.04
AlcatelLucentADR ALU 3.93 0.06 CampbellSoup CPB 53.15 0.49 ExxonMobil XOM 77.65
0.39 Leggett&Platt LEG 42.25 -0.09 PhilippineLgDisADR PHI 42.91 0.19 TelefonicaBrasADR VIV 9.22 0.15 AmerAirlinesGrp AAL 42.90 0.50 IntrctvBrkGrp IBKR 42.33 0.43 Starbucks SBUX 59.99 0.45
Alcoa AA 9.56 0.24 CIBC CM 66.73 0.54 FMC FMC 39.25
1.01 LennarClA LEN 49.00 0.95 Phillips66 PSX 81.70 1.08 TelefonicaADR TEF 11.09 0.13 AmeriCapAg AGNC 17.88 0.20 Intuit INTU 97.21 1.53 Stericycle SRCL 119.66 1.37
CanNtlRlwy CNI 56.66 0.20 LennarClB LEN/B 40.07 0.72 PiedmontNaturalGas PNY 57.22 0.49 TelekmIndonesiaADR TLK 45.13 0.44 Amgen AMGN 162.30 3.02 IntutvSrgcl ISRG 541.45 2.13
AlexREEq ARE 90.95 -0.29 FMCTechnologies FTI 28.88
0.18 Symantec SYMC 20.52 0.11
AlibabaGroupADR BABA 84.84 1.97 CndNatRes CNQ 20.79 0.14 FactSetResearchSys FDS 158.32
1.75 LennoxIntl LII 125.33 1.58 PinnacleFoods PF 42.81 0.24 TenarisADR TS 23.80 0.39 AmTrustFinSvcs AFSI 61.59 0.22 JD.comADR JD 32.53 0.03 Synopsys SNPS 45.34 0.61
Alleghany Y 483.45 7.19 CanPacRlwy CP 126.28 2.76 FedRlty FRT 147.75
-0.11 LeucadiaNational LUK 16.85 0.24 PinaclWCap PNW 63.50 0.54 Tesoro TSO 102.94 -2.24 AnacorPharm ANAC 104.19 -1.10 JackHenry JKHY 77.76 0.25 TDAmeritrade AMTD 34.73 0.76
Allegion ALLE 65.17 0.41 CanonADR CAJ 31.05 0.51 FedEx FDX 148.41
2.66 Level3Comm LVLT 52.69 0.79 PioneerNaturalRscs PXD 116.55 0.84 TesoroLogistics TLLP 49.11 3.14 AnalogDevices ADI 56.02 0.19 JazzPharma JAZZ 142.42 2.97 TFSFinancial TFSL 18.69 0.05
CapOneFnl COF 72.77 0.19 LLY 85.91 -0.13 PlainsAllAmPipe PAA 21.82 0.15 TevaPharmADR TEVA 65.73 -0.18 Apple AAPL 107.23 -0.10 JetBlue JBLU 23.37 0.06 T-MobileUS TMUS 39.26 0.28
Allergan AGN 310.59 0.67 Ferrari RACE 46.62
-0.79 EliLilly
AllianceData ADS 273.70 3.17 CardinalHealth CAH 88.87 0.82 FiatChryslerAutos FCAU 13.70
-0.26 LincolnNational LNC 49.80 0.80 PlainsGPHldgsClA PAGP 8.82 1.24 Textron TXT 42.07 0.76 AppliedMaterials AMAT 18.75 0.23 KLA Tencor KLAC 69.08 0.71 TRowePrice TROW 70.91 0.52
AllncBrnstnHldg AB 24.34 0.41 Carlisle CSL 88.63 0.16 FibriaCelulose ADR FBR 12.68
0.18 LinkedInA LNKD 228.35 1.02 PlumCrk PCL 47.44 0.71 ThermoFisherSci TMO 139.53 1.98 ArchCapitalGroup ACGL 70.17 0.49 KeurigGreenMtn GMCR 89.48 0.73 TeslaMotors TSLA 229.95 -2.61
AlliantEnergy LNT 62.29 0.36 CarMax KMX 51.62 -0.91 FidNtlFnl FNF 33.57
0.69 LionsGateEnt LGF 32.79 0.40 t PolarisIndustries PII 84.37 1.07 ThomsonReuters TRI 37.67 0.30 AthenaHealth ATHN 159.80 2.89 KraftHeinz KHC 72.93 1.55 TX Instr TXN 55.61 -0.21
Allstate ALL 62.50 1.20 Carnival CCL 54.27 0.33 FNFVGroup FNFV 10.35
0.18 LiveNationEnt LYV 25.02 0.23 PotashCp POT 17.63 0.56 3M MMM 148.97 1.49 s AtlassianClA TEAM 30.10 0.75 LKQ LKQ 28.84 1.49 TowersWatson A TW 132.33 0.10
AllyFinancial ALLY 18.60 0.27 s Carnival ADR CUK 56.54 0.41
FidelityNtlInfo FIS 59.85
0.69 LloydsBankingADR LYG 4.30 0.01 Praxair PX 102.81 0.69 Tiffany TIF 75.98 1.50 Autodesk ADSK 60.98 0.83 LamResearch LRCX 80.19 1.44 TractorSupply TSCO 85.40 0.64
Carters CRI 90.21 0.48 LockheedMartin LMT 217.58 2.11 PrecisionCastparts PCP 231.61 0.58 TimeWarnerCable TWC 183.14 1.17 ADP ADP 84.86 0.72 LamarAdvertisingA LAMR 59.40 -0.02
AltriaGroup MO 57.77 0.90 58.comADR WUBA 65.45
-0.02 TrimbleNav TRMB 21.89 0.39
AlumofChinaADR ACH 8.13 0.08 Caterpillar CAT 68.41 3.17 FirstRepublicBank FRC 65.82
-0.03 Loews L 37.80 0.76 PrincipalFinancial PFG 44.81 0.64 TimeWarner TWX 64.12 0.71 AvagoTech AVGO 145.10 -0.70 LibertyBroadbandA LBRDA 50.63 0.60 TripAdvisor TRIP 84.40 0.28
Celanese A CE 66.07 0.92 LOW 75.16 0.27 Procter&Gamble PG 79.60 0.65 TOL 33.83 0.48 BaiduADR BIDU 197.03 -0.41 LibertyBroadbandC LBRDK 50.83 0.30
t AmbevADR ABEV 4.49 0.08 FirstEnergy FE 31.72
0.65 Lowe's Toll Bros
CemexADR CX 5.29 0.15 LuxotticaGroupADR LUX 64.39 1.17 ProgressiveCorp PGR 31.83 0.71 Torchmark TMK 56.63 0.87 BedBath BBBY 51.32 0.96 t LibertyGlobalClA LBTYA 38.90 0.01 21stCenturyFoxClA FOXA 27.36 0.29
Ameren AEE 43.20 0.34 Fitbit FIT 28.66
-0.44 BIIB 300.77 3.21 t LibertyGlobalClC LBTYK 37.55 0.05 21stCenturyFoxClB FOX 27.60 0.01
AmericaMovilADR AMX 14.52 -0.22 CencosudADR CNCO 6.07 0.05 FleetCorTechs FLT 142.14
0.76 LyondellBasell LYB 87.09 0.11 Prologis PLD 42.07 0.17 TorntoDomn TD 39.18 -0.05 Biogen UltaSalon ULTA 186.12 -0.37
AEP AEP 57.21 0.66 CenovusEnergy CVE 12.46 0.15 FlwrsFoods FLO 22.32
0.29 M&T Bnk MTB 121.77 1.13 PrudentialFin PRU 81.49 1.44 TotalADR TOT 44.47 -0.06 BioMarinPharm BMRN 104.35 0.21 LibertyGlbLiLACAWi LILA 40.67 1.32 UltimateSoftware ULTI 195.69 0.29
AmericanExpress AXP 68.85 0.45 Centene CNC 65.15 -0.05 Flowserve FLS 40.64
0.24 MGMResortsIntl MGM 21.74 0.12 PrudentialADR PUK 44.87 0.52 TotalSystemSvcs TSS 50.70 -0.63 BlackBerry BBRY 8.96 0.24 LibertyGlbLiLACClC LILAK 42.28 1.18 UnitedTherapeutics UTHR 157.93 -0.22
AmericanFinancial AFG 71.39 0.68 CenterPointEnergy CNP 17.59 0.06 Fluor FLR 47.13
0.85 MPLX MPLX 36.76 1.61 PublicServiceEnt PEG 37.94 0.21 ToyotaMotorADR TM 125.58 0.93 Broadcom BRCM 57.42 -0.05 LibertyInteractQVC QVCA 26.89 0.81 VeriSign VRSN 87.57 0.76
CenturyLink CTL 25.18 0.02 MSCI MSCI 71.54 -0.43 s PublicStorage PSA 248.49 -2.15 TransCan TRP 32.47 0.42 CA CA 28.66 0.57 LibertyVenturesA LVNTA 44.06 0.03
AmIntlGp AIG 60.73 0.76 FomentoEconMexADR FMX 95.10
0.99 VeriskAnalytics VRSK 76.28 0.31
AmericanTowerREIT AMT 96.42 0.86 Chevron CVX 90.27 1.03
FootLocker FL 66.65
2.64 Macerich MAC 79.29 -0.08 PulteGroup PHM 17.80 0.03 TransdigmGrp TDG 226.17 0.14 CBOE Holdings CBOE 65.63 0.42 LibertyMediaA LMCA 38.79 0.13 VertxPharm VRTX 122.74 2.18
AmericanWaterWorks AWK 59.03 0.76 ChinaEasternAirADR CEA 28.91 -0.35
FordMotor F 0.47 14.20 MacquarieInfr MIC 68.51 1.88 Qihoo360Technology QIHU 72.95 -0.07 TransUnion TRU 27.17 0.26 CDKGlobal CDK 46.42 0.50 LibertyMediaC LMCK 37.31 0.30 Viacom A VIA 43.30 1.82
ChinaLifeInsADR LFC 16.38 -0.10 t Macys M 35.43 0.41 QuestDiag DGX 71.37 0.30 TravelersCos TRV 112.48 1.54 CDW CDW 42.80 0.46 LinearTechnology LLTC 43.13 0.12
Amerigas APU 33.98 1.77 ForestCtyA FCE/A 21.62
0.28 Viacom B VIAB 40.78 1.56
AmerprsFncl AMP 107.17 1.74
ChinaMobileADR CHL 56.78 0.01
ForestCtyB FCE/B 21.57
0.26 MagelnPtnrs MMP 66.27 0.96 QuintilesTransnat Q 69.29 -0.45 TurkcellIletismADR TKC 8.56 -0.20 CH Robinson CHRW 63.40 0.90 LinnEnergy LINE 1.20 0.08 VimpelComADR VIP 3.47 0.02
ChinaPetroleumADR SNP 60.25 0.75 MagnaInt MGA 41.30 -0.08 RELXADR RENX 16.59 0.02 TurquoiseHillRscs TRQ 2.51 0.09 CMEGroupClA CME 94.69 2.25 lululemonathletica LULU 53.15 1.25
AmeriSrcBrg ABC 103.16 0.27 FortBrandsHomeSec FBHS 55.28
0.67 CSX 25.75 0.63 ManhattanAssoc MANH 69.11 -0.40 VodafoneGroupADR VOD 31.41 0.07
ChinaSoAirlinesADR ZNH 39.41 -0.21 Mallinckrodt MNK 74.76 3.12 RELXADR RELX 17.69 0.13 Twitter TWTR 22.56 0.42 CSX
Ametek AME 53.42 0.34 Franco-Nevada FNV 46.26
-0.42 WPPADR WPPGY 113.86 0.60
ChinaTelecomADR CHA 47.00 0.22 ManpowerGroup MAN 84.67 0.34 RPM RPM 43.08 0.30 TycoInternational TYC 31.75 0.57 CadenceDesign CDNS 21.18 0.26 Markit MRKT 29.14 -0.04
AmphenolClA APH 53.03 0.93
ChinaUnicomADR CHU 12.22 ...
FranklinResources BEN 35.82
0.58
ManulifeFinancial MFC 15.02 0.03 RalphLaurenA RL 111.81 1.70 TylerTechnologies TYL 178.14 1.09 Carlyle CG 15.68 -0.12 MarriottInt A MAR 68.49 3.32 WalgreensBootsAll WBA 86.01 1.12
AnadarkoPetroleum APC 48.55 2.00 Freeport-McMoRan FCX 6.42
0.18 t WstnDgtl WDC 59.69 0.63
AnheuserBuschADR BUD 124.50 0.69
t ChipotleMex CMG 494.61-27.40
FreseniusMedADR FMS 41.26
-0.04 MarathnOil MRO 12.69 0.17 RayJamFnl RJF 59.25 0.15 TysonFoodsClA TSN 53.59 0.42 CaseyGnStr CASY 119.82 1.79 Mattel MAT 27.02 0.64
s Chubb CB 132.43 1.38 MarathonPetroleum MPC 51.60 0.20 Raytheon RTN 126.87 0.84 UBSGroup UBS 19.39 0.23 Celgene CELG 111.14 0.30 MaximIntProducts MXIM 37.31 -0.35 WholeFoods WFM 34.78 1.80
AnnalyCap NLY 9.73 0.16 Gallagr AJG 40.51
0.20 CERN 60.43 0.75 Medivation MDVN 46.87 0.60 WynnResorts WYNN 67.65 1.89
ChunghwaTelecomADR CHT 30.18 0.30 MarineHarvestADR MHG 12.94 0.01 t RealogyHoldings RLGY 37.26 0.32 UDR UDR 36.51 0.03 Cerner
AnteroResources AR 20.57 -0.67 Gap GPS 25.58
0.81 Xilinx XLNX 47.43 0.13
Anthem ANTM 140.19 0.66
Church&Dwight CHD 85.33 1.20
Gartner 1.92
IT 89.89 Markel MKL 879.85 2.87 RealtyIncome O 51.18 0.10 UGI UGI 33.15 0.61 CharterComms CHTR 181.00 0.95 MelcoCrownEntADR MPEL 16.56 0.06 Yahoo YHOO 34.19 1.22
Aon AON 91.07 0.27
Cigna CI 145.65 1.18
t Gazit-Globe GZT 9.00
-0.20 MarshMcL MMC 54.95 0.37 RedHat RHT 80.89 0.45 UltraparPartADR UGP 15.53 0.01 ChkPntSftwr CHKP 82.66 0.95 MercadoLibre MELI 111.77 -0.96 Yandex YNDX 15.80 0.16
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GrupoTelevisaADR TV 28.02 MizuhoFinancialADR MFG 4.04 0.02 RylCaribn RCL 98.66 -0.40 ValeantPharmIntl VRX 113.12 4.36
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C8 | Wednesday, December 23, 2015
Philippines Opens Its Doors to Retirees
Government offers
financial incentives,
tailors developments
to lure Asian seniors
BY TREFOR MOSS
MANILA—In the bustling
Chinatown here, a Philippine
conglomerate is banking on
Chinese retirees, part of an ag-
gressive joint effort with the
government to lure graying
Asians to its shores.
Chinese retirees already
have bought 320 condos in
one building in the CityPlace
development for about
$150,000 each and the com-
pany is targeting that same
market for another tower it is
building nearby, said Wilson
Sy, the assistant vice presi-
dent of the developer, Mega-
world.
Many of the town’s market
stalls are owned by Chinese
retirees now, and shops at the
Lucky Chinatown Mall next
door have installed Chinese
signage to make them feel
more at home.
“They come in here to eat
noodles, often in their paja-
mas—like in China,” Mr. Sy
said.
These retirees are the be-
ginning of what the Philippine
government and developers
hope to turn into a top indus-
try: the retirement business.
This year, the country is on
pace to welcome a record
6,000 new foreign retirees—
more than triple the number
that arrived in 2009, says the
Philippine Retirement Author-
ity.
The agency tasked with en-
ticing older expats wants to
more than double their num-
ber to 100,000 in the next five
years from 43,500 today, and
eventually reach one million in
a country of 100 million.
The main retirees settling
in the Philippines come from
China, Japan, South Korea and
Taiwan, countries that already
have well-established trade
and tourism links here.
The Philippines has been
trying to lure foreign retirees
What Giving Up
U.S. Citizenship
Could Really Cost
BY LAURA SAUNDERS
The U.S. allows its citizens
to have more than one pass-
port, but often there isn’t any
tax advantage to doing so, tax
experts say.
“No matter how many citi-
zenships they hold, Americans
still owe U.S. taxes on their
world-wide income,” says
Philip Hodgen, an interna-
tional tax lawyer who prac-
tices in Pasadena, Calif.
There is a more extreme,
and permanent, maneuver: re-
nouncing U.S. citizenship out-
right. People considering that
should be aware that the pro-
cess can be long, complex and
costly, tax experts say.
23.8%
For renouncers, net capital
gains are taxable at rates up
to this percent on the exit tax.
Renouncers must certify
that they have been tax-com-
pliant for the last five years—
and sometimes produce the
returns to prove it. For this
reason, renouncing citizenship
isn’t a ready solution for cop-
ing with past tax errors, tax
experts say.
Some would-be expatriates
owe a hefty exit tax. The law
treats many renouncers as
having sold all their world-
wide assets on the day before
the renunciation, even if the
person will continue to own
the property and pay tax on it.
The exit tax applies to re-
nouncers whose net assets are
greater than $2 million or
whose average annual income
tax has been greater than
about $160,000 for the last
five years. Net capital gains
are taxable at rates up to
23.8%. Special rules apply for
pensions, trusts and accounts
THE PROPERTY REPORT
Around 300 of 720 condos at Mactan Newtown in Cebu were bought by Japanese retirees. At right,
Chinese retirees have purchased condos in Manila’s Chinatown at the CityPlace development.
for 30 years, but the results
had been lackluster. Though
sunny and cheap, the unstable
and impoverished country was
generally seen as a poor
choice for a trouble-free re-
tirement.
But now a combination of
factors is finally giving the
project traction, officials say.
The government has made it
extremely cheap to settle in
the Philippines, dropping the
amount retirees must keep in
a local bank to $20,000 from
$75,000, for example, and al-
lowing foreigners to qualify at
just 35 years old.
Meanwhile, developers, see-
ing the opportunity, are tailor-
ing new projects to appeal to
certain foreigners, like adding
a bonsai park for Japanese re-
tirees. And, because Asian re-
tirees often are looking for
good investments such as
shops or real estate to keep
their nest eggs growing, the
Philippine growth rate of 6%
and the low cost of living
sweeten the offer.
The Philippines now leads
the region in trying to woo
this niche market, but it can
such as individual retirement
accounts, but they are taxable.
There are some exceptions
to this tax, such as for people
who have been dual citizens
from birth.
Expatriation usually re-
quires one or more exit inter-
views with consular officials,
although often the conversa-
tions are brief unless there are
irregularities. The law also re-
quires the names of U.S. citi-
zens who give up their pass-
ports to appear on a list
published quarterly by the
Treasury Department, which
some people might consider
embarrassing.
Heirs could owe big tax
bills. The U.S. heirs of wealthy
taxpayers who renounce their
citizenship often owe a stiff
inheritance tax on bequests
from them. (This provision
doesn’t apply to spouses of ex-
patriates who are U.S. citi-
zens.)
For example, say a woman
worth $6 million renounces
her citizenship and becomes a
citizen of St. Kitts and Nevis.
If she leaves each of her three
American children $2 million,
each will owe about $800,000
of federal tax on the bequest,
Mr. Hodgen says.
Travel abroad might be-
come complicated, with more
visas required—even to the
U.S. If an expatriate wants to
return to the U.S., it might be
difficult for him or her to
spend more than 120 days a
year (on average) here without
becoming a taxpayer. And the
expatriate mustn’t appear to
be using a visitor’s status to
live in the U.S.
Under a provision known as
the “Reed Amendment,” U.S.
officials can deny entry to any
person who has renounced cit-
izenship for tax reasons. This
provision is rarely if ever ap-
plied, but it remains on the
books.
expect neighboring countries
with similar tropical living to
compete.
Malaysia has a similar tar-
geted program: Its retirement
visas offer 10-year residency,
and applicants must be over
50 and deposit $33,000. About
28,000 people have signed up
so far, according to the Malay-
sian government. Thailand
doesn’t have a dedicated pro-
gram to try to attract retirees.
However, under a long-stay
program, it allows retirees 50
or older to stay on a one-year,
renewable visa if they deposit
about $22,000 in a Thai bank
or show they receive at least
$1,800 monthly. (Officials
didn’t answer an inquiry about
how many foreign retirees are
in the country.)
In addition to more rivals
eventually vying for the niche
market, the Philippine pitch
also is threatened by the coun-
try’s threadbare infrastructure
and poor Internet connectiv-
ity, said Christian de Guzman,
a senior analyst at Moody’s.
“Most of my friends have
moved to Hainan, but property
there is extremely expensive,”
Valmiki Kempadoo, whose Kittitian Hill project has an 18-hole golf course, says the foreign investment program “was very useful.”
EXPAT
Continued from page C1
“We realized we were be-
coming less competitive with
developers without a citizen-
ship-by-investment program,”
said Ernest Hilaire, chairman
of the board for St. Lucia’s cit-
izenship by investment pro-
gram. His country begins ac-
cepting applications on Jan. 1,
joining St. Kitts and Nevis,
Dominica, Grenada and Anti-
gua and Barbuda among the
Caribbean nations offering the
programs.
The programs represent
one of the few ways for the
smaller island nations to at-
tract investment when banks
and many developers see them
as risky bets. But they have
their skeptics. The U.S. gov-
ernment, for one, has alleged
some people have used their
new citizenship in at least one
Caribbean country to provide
cover for financial crimes.
The countries usually don’t
share figures related to citi-
zenship-by-investment. But St.
Kitts and Nevis Prime Minister
Timothy Harris said in an in-
terview that 2015 revenue
from his country’s program
exceeded expectations by 42%,
THE WALL STREET JOURNAL.
TREFOR MOSS/THE WALL STREET JOURNAL (2)
said Ding Bin, a retired City-
Place resident, referring to
China’s southernmost prov-
ince.
Mr. Ding and his wife, who
moved from China’s chilly
northeast, can live comfort-
ably in the Philippines on
$20,000 a year, he said, while
enjoying year-round warmth,
brushing up their English and
exploring affordable invest-
ment opportunities.
He and other retirees have
so far deposited $480 million
in local bank accounts, a figure Rival developments in Cebu direct flight to Japan. Several
Philippine authorities expect are springing up fast. Japanese destinations are
to multiply in the next few Robinsons Land Corp., the available.
years. property arm of JG Summit “The Philippines has warm,
The government’s push has Holdings, another big Philip- tropical weather all year
prompted real-estate compa- pine conglomerate, and Syn- round, and I think the cost of
nies to build developments tech Properties Inc., a local living here is as little as a 10th
from Manila to the powdery subsidiary of Singaporean de- of what it would be in Japan,”
beaches of Cebu with foreign veloper Woh Hup Group, are said one of Mactan Newtown’s
retirees specifically in mind. among those with existing new Japanese residents, a 55-
Around 300 of 720 condos condo developments targeting year-old former businessman
at Mactan Newtown, a new retirees in Cebu, and at least who said he and his wife de-
Megaworld development in five more are being built here. cided to move abroad after
Cebu that opened in Novem- When completed, Mactan 2011’s Fukushima nuclear acci-
ber, were bought by Japanese Newtown will have Japanese dent.
retirees, who will eventually flavors like a Zen rock garden, But it was the Philippines’
occupy 600 of the finished de- plus easy access to the beach, economic potential that won
velopment’s 1,700 homes, the golf course and Mactan-Cebu them over. “Future growth is
firm anticipates. airport, which is a four-hour almost certain,” he said.
KITTITIAN HILL
though he declined to offer a
dollar amount.
Apex Capital Partners, a
Montreal wealth-management
or risk losing access to the
U.S. market.
That has motivated a num-
ber of U.S. expats to give up
Last year, the U.S. Treasury
issued an advisory letter to fi-
nancial institutions warning
that “certain foreign individu-
firm that specializes in these their citizenship, said Apex als” were using the St. Kitts
programs, estimates Caribbean President Nuri Katz. “You can program to obtain passports
countries granted new citizen- save 45% a year in taxes for “for the purpose of engaging
ship to as many as 2,000 in- the rest of your life,” he said. in illicit financial activity.”
vestors this year, at least dou- Still, even though most of The letter added that the
bling from five years ago. the Caribbean nations impose U.S. government believed that
Scores of U.S. citizens little to no tax on their citi- “several Iranian nationals” ob-
are helping boost those num- zens, Americans giving up tained St. Kitts passports to
bers. At least some might be their citizenship must pay a elude international sanctions
worried about recent govern- hefty one-time exit tax on that stood last year before the
ment efforts to enforce tax their assets. global nuclear agreement with
laws on American citizens liv- Developer Valmiki Kempa- Tehran.
ing abroad. doo said he has seen a sprin- Mr. Harris, the prime minis-
“America is beginning to be kling of U.S. citizens among ter, said that after the Trea-
a great source market for per- the many Asians and Middle sury report his country
sons wanting second citizen- Easterners investing for citi- worked with the U.S. and
ship, and I think you’ll see zenship in his $500 million other foreign governments to
more and more Americans project in St. Kitts and Nevis. “make sure our due diligence
participating,” Mr. Hilaire said. The two-island nation in the process meets the highest in-
This comes as a record West Indies with a population ternational standards.”
3,415 Americans gave up their of about 55,000 is known for Despite the Treasury’s
citizenship in 2014, up about its rain forests and black-sand warning, citizenship-by-invest-
14% from 2013 and more than beaches. ment programs should con-
triple the amount in 2012, ac- Mr. Kempadoo said he tinue to bloom in the West In-
cording to an analysis of Trea- has made about 200 sales at dies, said Rick Newton, a
sury Department data by tax his Kittitian Hill hillside devel- founding partner at Resort
lawyer Andrew Mitchel. opment to citizenship-by-in- Capital Partners, a real-estate
That reflects in part Wash- vestment owners. The project investment-advisory firm that
ington’s stricter enforcement includes an 84-room high-end focuses on the Caribbean.
of its tax collection for citi- hotel and 18-hole golf course. With foreign banks still re-
zens living abroad with the “It was very useful,” he said luctant to lend for projects
Foreign Account Tax Compli- of the foreign investment pro- there, new citizens of St. Kitts
ance Act, enacted in 2010. The gram. “Especially in the early and its neighbors “are becom-
act compels foreign banks to stages when we couldn’t sell ing the lenders of last resort,”
report U.S. individual accounts anything.” he said.
THE WALL STREET JOURNAL. Wednesday, December 23, 2015 | C9

THE PROPERTY REPORT

How Push to Overhaul Visa Program Failed

BY ELIOT BROWN urged by Mr. Grassley and tunity for Congress to address people familiar with the mat-
strenuously resisted by real- these issues and at the end of ter.
For more than a year, U.S. estate developers—that would the day, they chose to do noth- As concerns grew over how
Sen. Charles Grassley had been have made it harder for luxury ing,” said Michael Gibson, to grapple with the large,
pushing to overhaul a contro- projects to benefit from a pro- managing director of USAdvi- growing backlog, it was clear

JOHN TAGGART FOR THE WALL STREET JOURNAL

versial program that gives vision meant for economically sors.org, which advises immi- all sides couldn’t be satisfied,
green cards to foreigners who ailing neighborhoods. In addi- grant investors about EB-5 and Mr. Schumer and Sen.
invest at least $500,000 in cer- tion, developers worried about projects. John Cornyn (R., Texas),
tain businesses. So when con- a provision that would have Until last week, Mr. Grassley pushed for a 10-month re-
gressional leaders last week disrupted some EB-5 financed and allies including Sen. Pat- newal, people familiar with the
moved forward with a 10- projects already under way, rick Leahy (D., Vermont) discussions said.
month extension of the so- people briefed on discussions thought they had enough sup- “Hopefully, the recent EB-5
called EB-5 program without said. port to push through an over- extender will allow the entire
any changes, the Iowa Republi- But the prospects of an haul meant to address fraud program to be publicly vetted,”
can was less than pleased. agreement on an overhaul and to restrict a widespread said Angelo Roefaro, a spokes-
“Maybe it is only here on could grow harder in coming practice in which developers in man for Mr. Schumer. “The ex-
Capitol Hill—an island sur- months. Investors and real-es- prosperous neighborhoods tender allowed us to avoid any
rounded by reality—that we tate developers have piled into The Hudson Yards complex in New York has used EB-5 funding. benefit from a provision of the unintended consequences that
can choose to plug our ears the program at a record pace, program meant for high-unem- might be unfair to urban areas
and then refuse to listen to adding to the list of those who bers—that means the pending and Exchange Commission has ployment areas. while reforms are openly dis-
commonly accepted facts,” he may balk at changes. applications account for four filed numerous lawsuits in re- But developers, most nota- cussed.”
said in a 33-minute speech on As of Sept. 30, there were to five years of backlog. cent months accusing various bly Related Cos., which is us- Mr. Grassley had a different
the Senate floor Thursday. The 17,367 pending applications of Numerous new high-profile lawyers and others involved in ing the EB-5 program to help take, saying on the Senate
program, he said, is “riddled investors who had committed developments have come into EB-5 of failing to disclose con- fund its Hudson Yards develop- floor, “this is how work of sev-
with flaws and corruption.” to EB-5 projects, up from the program recently, includ- flicts to investors and of using ment, pushed back. With aid eral years ended—a reform
Despite broad agreement 12,453 a year earlier, according ing the planned tower at 2 money meant for a busi- from the Real Estate Roundta- blocked by selfish interests.”
that EB-5 is in need of changes to the U.S. Citizenship and Im- World Trade Center in Man- ness for their personal gain. ble and the U.S. Chamber of Mr. Grassley suggested he
amid mounting allegations of migration Services, the pro- hattan, for which developer EB-5 professionals expect Commerce, they engaged in a may change his approach on
fraud and abuse, lawmakers gram administrator. Since just Silverstein Properties Inc. is fraud and other abuses to con- flurry of lobbying, winning al- the program.
last week failed to reach an ac- 10,000 visas a year are allo- ultimately seeking $500 mil- tinue until changes are made lies including Sen. Charles “Now I’m not so sure re-
cord over just how to go about cated to EB-5—and that the lion in EB-5 funding. because of the flaws inherent Schumer (D., N.Y.), whose of- forms are possible,” he said.
altering it. Among the con- typical investor secures visas Meanwhile, concerns about in the program’s structure. fice gave large developers up- “It may be time to do away
tested issues was a change— for two additional family mem- fraud are rising. The Securities “You have a golden oppor- dates on progress, according to with EB-5 completely.”

New Highs and Lows | WSJ.com/stocks Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock LatAmDiscv LDF 7.07 2.2 DirexionHlthcrBr3X SICK 38.99 -2.0 RetractableTechs RVP 2.77 1.8 Radcom RDCM 14.63 -0.3 DeltaTech DELT 1.17 -8.0 MemorialProduction MEMP 1.57 12.4
Market stocks that hit a new 52-week intraday high or low in the latest session. E-TRACS CMCI UCI 11.51 -0.1 SLI 30.14 -0.2 Stamps.com STMP 109.91 3.8
% CHG-Daily percentage change from the previous trading session. Macys M 34.05 1.2 SL Ind Determine DTRM 1.98 -6.1 MicronetEnertecWt MICTW 0.24 -0.3
Marcus&Millichap MMI 28.55 1.7 FidelityCorpBd FCOR 47.28 -0.3 USAntimony UAMY 0.25 -9.6 WAVELifeSciences WVE 21.00 13.1 DoubleEagleAcqnClA EAGL 9.55 -0.5 NetApp NTAP 25.21 -5.0
Tuesday, December 22, 2015 GldmnSchsGSCnnct GSC 19.51
MidSoBcp MSL 8.66 1.5 -0.5 XtantMedical XTNT 2.38 -3.8 EVEnergyPartners EVEP 1.91 1.5 NicholasFinancial NICK 11.45 -2.5
52-Wk % 52-Wk % 52-Wk % MineralsTechs MTX 44.91 -0.7 iSharesCMBSETF CMBS 50.60 -0.2 Nasdaq lows - 98 EasterlyAcqnUn EACQU 9.65 0.8 NoTchInt NTIC 13.10 -0.1
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
Nordstrom JWN 49.34 1.5 iShGlobalInflLkdBd GTIP 45.97 -0.6 Nasdaq highs - 32 ARCapAcqnUn AUMAU 9.70 1.4 EasterlyAcqn EACQ 9.55 -1.7 NorthwestPipe NWPX 9.87 -0.6
PrefAptCmnts APTS 13.72 3.0 ComcastHldg CCZ 43.00 -1.2 NuverraEnvlSolns NES 0.48 ... iShMSCICanadaETF EWC 21.21 0.6 AcceleronPharma XLRN 48.86 -1.8 AcaciaResearch ACTG 3.82 -9.8 ElectrumSpecialAcq ELECU 9.58 0.7 ONEGrpHospitality STKS 2.30 1.9
NYSE highs - 29 PublicStorage PSA 252.86 -0.9 EngGr-Cmg ADR CIG 1.44 -1.4 OasisPetroleum OAS 6.34 4.7 PIMCOEnhShMaturity MINT 100.66 -0.1 Altera ALTR 53.94 ... AkersBiosciences AKER 1.15 -6.3 OceanPwrTech OPTT 1.91 -3.6
ElectrumSpecialWt ELECW 0.17 13.6
ApolloComRlEst ARI 17.89 0.3 SouthernNts2015A SOJA 26.88 ... CompassMnlInt CMP 71.00 3.9 PVH Corp. PVH 71.99 0.3 PwrShsDBComTr DBC 13.13 -0.5 ArtesianRscsClA ARTNA 28.09 2.1 AlexzaPharm ALXA 0.80 -7.6 Enteromedics ETRM 0.12 -5.1 Outerwall OUTR 36.75 -1.6
BlackHillsUn BKHU 53.85 1.5 SovranSelfStorage SSS 108.39 0.6 CnsmrEngy pfB CMSpB 95.07 -2.6 PatriotNational PN 6.21 -0.5 PowerSharesDBEnFd DBE 10.75 -0.5 AtlassianClA TEAM 30.74 2.6 AmCapSeniorFloat ACSF 9.55 2.3 PC-Tel PCTI 4.37 -3.5
Euroseas ESEA 2.69 -4.3
CampusCrestComm CCGpA 26.62 0.6 StateStreetDepPfdE STTpE 26.47 -0.2 ContinentalRscs CLR 19.60 7.1 ProSharesUltraHiYd UJB 47.30 0.4 Bruker BRKR 24.09 1.4 AmElecTch AETI 1.85 2.4 PeakResorts SKIS 5.45 -6.2
PennVirginia PVA 0.26 3.9 FmsDaves DAVE 6.70 -3.4
Carnival ADR CUK 56.58 0.7 Trupanion TRUP 9.28 1.1 Corts JCPen JBS JBN 14.51 3.3 USBrentOilFd BNO 11.82 -0.1 CambridgeCapAcqnWt CAMBW 0.79 6.4 PerseonWt PRSNW 0.02 -29.1
PetroQuestEnergy PQ 0.31 -7.1 ArchrockPartners APLP 10.58 7.4 FstTrSeniorLoanFd FTSL 46.83 -0.2
CharlesSchwabPfdC SCHWpC 26.32 0.5 WellsFargoDepPfdV WFCpV 26.25 1.1 DiamndrckHspty DRH 9.76 0.1 USDieselHeatingOil UHN 12.42 -0.7 ChBioProdcts CBPO 137.68 -0.5 PointerTel PNTR 4.97 -3.9
PolarisIndustries PII 81.42 1.3 ArtWayMfg ARTW 2.50 -5.4 FirsthandTechValFd SVVC 6.96 -0.7
ChespkeUtil CPK 56.54 1.9 XuedaEducADR XUE 5.45 0.9 Dillards DDS 65.14 2.1 USGasolineFd UGA 27.28 -1.7 ChinaCustomerRelat CCRC 11.99 12.8 PSDBOptYdDivCmdty PDBC 15.26 -1.0
RealogyHoldings RLGY 35.96 0.9 AssemblyBioscience ASMB 7.23 -4.3 GPInvtsAcqnUn GPIAU 9.65 -1.7
Chubb CB 132.58 1.1 EagleMaterials EXP 58.13 ... CorVel CRVL 42.90 1.1 QuantumFuel QTWW 0.74 -4.4
CubeSmart CUBE 31.02 -0.2 NYSE lows - 65 Encana ECA 4.65 -5.1
RyersonHolding RYI 3.93 -5.0 NYSE MKT highs - 3 CynosureClA CYNO 43.24 3.0
AstaFunding ASFI 7.52 0.1 GWPharmADR GWPH 64.79 -2.4
RPX RPXC 10.28 -2.2
SabineRyl SBR 25.50 2.4 BenitecBiopharmADR BNTC 4.14 ... GalectinTheraptcs GALT 1.53 6.8
EquityLife ELS 66.05 -0.2 ARCDocumentSolns ARC 4.35 0.2 Energen EGN 40.56 1.2 BlkRkVA Muni BHV 20.50 3.6 CyrusOne CONE 38.00 3.4 RadaElectronicInds RADA 0.36 -3.6
ExtrSpcStor EXR 89.98 SafeBulkers SB 0.80 -7.8 BirnerDental BDMS 9.41 -8.8 GlbEagleEnt ENT 9.15 3.3
-0.1 AmbevADR ABEV 4.38 1.8 EverBankFin EVER 15.91 -0.9 EtnVncNY ENX 13.17 ... Dyax DYAX 37.79 0.1 Rediff.comIndiaADR REDF 0.82 -5.5
FourCornersProp FCPT 23.59 -1.0 AspenAerogels ASPN 5.24 4.8 ForestarGroup FOR 10.42 2.1 SafeguardSci SFE 13.75 2.5 BravoBrioRestr BBRG 8.64 -0.2 GluMobile GLUU 2.20 -6.3
TherapeuticsMD TXMD 10.26 3.5 FstCmntyCp FCCO 15.42 4.6 SearsCanada SRSC 5.13 -5.8
Harris HRS 86.88 2.7 Belden BDC 44.37 1.2 GOLLinhasADR GOL 0.58 -8.6 ScorpioBulkers SALT 0.57 3.2 CIFC CIFC 6.30 0.5 GreatBasinScien GBSN 1.50 -22.5
Five9 FIVN 8.00 0.5 SelectComfort SCSS 19.90 -0.5
HormelFoods HRL 80.53 1.1 BlkRkEngyResTr BGR 12.17 -0.7 Gazit-Globe GZT 8.85 -2.2 ShawCom B SJR 16.75 0.1 NYSE MKT lows - 18 GenomicHealth GHDX 35.45 1.4
CSICompressco CCLP 10.10 4.4 Gyrodyne GYRO 25.02 -0.2 SteelExcel SXCL 12.47 -1.2
HubbellA HUB/A 125.50 2.1 BrookfieldDTLAPfdA DTLAp 19.40 -2.6 Gener8Maritime GNRT 8.33 -7.2 Steelcase A SCS 14.35 -22.9
AvinoSilvr&GldMnes ASM 0.84 -8.2 GlbPartnerAcqn GPAC 10.19 0.6 CapitolAcqnIIIUn CLACU 9.22 1.7 HalladorEnergy HNRG 4.95 3.6 SysorexGlblHldgs SYRX 0.54 -5.1
Invesco MIO OIA 7.29 0.4 Cenveo CVO 0.89 -6.9 HNI HNI 35.53 0.2 SuburbnPrpn SPH 22.69 1.8 CKX Lands CKX 9.50 -0.5 IntegraLifeSci IART 67.74 0.4 CapricorTherap CAPR 3.22 -12.5 Handy&Harman HNH 18.54 -2.6 TICCCapital TICC 5.78 0.8
Kellogg K 72.50 1.6 ChesapeakeGranite CHKR 2.98 7.9 Harsco HSC 7.73 2.3 TsakosEnergyPfdC TNPpC 22.53 -1.3CelSci CVM 0.37 -6.2 IntgtElecSvcs IESC 10.26 2.3 CardiomePharma CRME 6.92 0.4 HennessyCapAcqnII HCAC 9.52 0.5 TechTarget TTGT 7.78 0.9
KimberlyClark KMB 126.59 1.2 ChesapkLdgTr CHSP 25.13 ... HugotonRoyaltyTrUn HGT 1.47 2.0 Unisys UIS 10.34 -3.0ContangoO&G MCF 5.73 2.6 InvestorsTitle ITIC 92.22 1.1 CescaTherapeutics KOOL 0.20 -0.7 HeritageCrystal HCCI 8.90 0.2 TeleNav TNAV 5.86 -1.1
NewIrelandFd IRL 15.14 0.6 ChinaYuchaiIntl CYD 10.63 -0.7 Interoil IOC 28.50 3.1 W&TOffshore WTI 2.05 -1.9DXIEnergy DXI 0.14 25.8 MalvernBancorp MLVF 17.70 -1.1 ChAdvCnstrMt CADC 1.54 -1.2 InfoSvcsGrp III 3.32 -1.5 BancpBk TBBK 6.05 0.5
NuvGA Fd2 NKG 13.50 0.1 ChipotleMex CMG 494.11 -5.2 IsraelChemicals ICL 4.01 -0.2 WPXEnergyPfdA WPXP 28.55 -2.9FieldPointPetrolm FPP 0.66 0.6 MiddlesexWater MSEX 27.47 2.0 ChinaAutoSystems CAAS 4.75 0.6 iShMSCIEmgMktLA EEML 24.35 0.7 TokaiPharma TKAI 9.13 -3.2
OrbitalATK OA 92.99 -0.7 ClayEngy CWEI 28.59 -2.8 Knoll KNL 18.29 -9.2 WPXEnergy WPX 5.15 -4.3GeneralMoly GMO 0.20 -14.0 MyoKardia MYOK 15.74 -4.8 CinedigmClA CIDM 0.24 -5.6 IturanLocation ITRN 17.76 0.4 Unilife UNIS 0.47 ...
PepBoys PBY 17.02 0.2 CliffsNaturalPf CLV 1.20 4.8 KnotOffshorePtrs KNOP 10.38 -0.5 WhitingPete WLL 8.12 8.3 IsoRay ISR 0.90 -10.0 NaturalAlternative NAII 9.41 5.3 Cnova CNV 2.15 -5.9 LeadingBr LBIX 2.75 -2.4 UraniumResources URRE 0.35 -3.8
Wiley A JW/A 43.16 0.7 Libbey LBY 21.35 -0.6 NektrThera NKTR 17.03 3.1 CounterPath CPAH 2.11 -7.5 LegacyReservesPfdA LGCYP 4.97 3.8 VestinRealtyMtgI VRTA 1.78 -15.5
Online>> NYSE Arca highs - 0 NTNBuzztime NTN
NrthrnOilGas NOG
0.13 -10.1
3.36 3.9
NeoGenomics NEO
NxstageMed NXTM 21.69 4.3
8.48 -1.7 CovenantTransportA CVTI
Cowen8.25%Nts2021 COWNL
16.84 2.4
24.86 1.4
LibertyGlobalClA LBTYA
LibertyGlobalClC LBTYK
38.43 ...
37.24 0.1
VestinRealtyMtg II VRTB
WstnDgtl WDC
2.63 -1.8
57.94 1.1
During the trading day, 52-week highs and lows are updated hourly PalatinTechs PTN 0.62 -7.5 PacBiosciCA PACB 12.55 1.4 DTAsiaInvtsWt CADTW 0.02 ... Limoneira LMNR 14.52 -1.3 WTBofAMerLynHiYd HYND 18.86 1.1
at WSJMarkets.com. Lists for each market are available free, along NYSE Arca lows - 15 PlatinumGrpMtls PLG 0.13 5.0 PrvdntFnlHldg PROV 19.00 1.6 DXPEnterprises DXPE 22.32 2.7 Lionbridge LIOX 4.47 -0.9 WisdomTreeEmgMkCrp EMCB 65.10 0.7
with easy access to charts and headlines. DeutscheXMSCIBrazl DBBR 8.18 2.5 RareElementRes REE 0.15 -1.2 pSivida PSDV 5.81 21.4 Dataram DRAM 0.67 1.1 LumosNetworks LMOS 10.71 2.1 XteraComms XCOM 4.10 1.0

Dividend Changes Company Symbol

Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Continued from Page C5 ProSh Large Cap Core Plus CSM 2.2 .27387 Q Dec31 /Dec24 ProShrs Ultra Industrials UXI 0.7 .17329 Q Dec31 /Dec24 Vanguard Materials VAW 2.5 .60 Q Dec30 /Dec28
Amount Payable / ProSh Short USD Emg Bd EMSH 10.2 .64993 M Dec31 /Dec24 ProShrs Ultra Real Estate URE 2.3 .59386 Q Dec31 /Dec24 Vanguard MBS VMBS 2.4 .24 Dec30 /Dec28
Company Symbol Yld % New/Old Frq Record ProShares 30Y TIPS TSY RINF 3.3 .22994 Q Dec31 /Dec24 ProShrs Ultra Russell2000 UWM 0.5 .09855 Q Dec31 /Dec24 Vanguard MBS VMBS 2.4 .104 M Dec30 /Dec28
AlpnGlblPrProp AWP 10.4 .05 M Jan29 /Jan22 ProShares Div Growers EFAD 1.8 .16094 Q Dec31 /Dec24 ProShrs Ultra Telecomm LTL 1.4 .28594 Q Dec31 /Dec24 Vanguard Mid-Cap VO 2.0 .609 Q Dec30 /Dec28
Avenue Incm Cr Strat Fd ACP 12.6 .12 M Jan14 /Dec31 ProShares DJ Brookfield TOLZ 7.0 .62198 Q Dec31 /Dec24 ProShrs UltraPro S&P 500 UPRO 0.8 .13056 Q Dec31 /Dec24 Vanguard REIT VNQ 5.5 1.098 Q Dec30 /Dec28
Ctrl Europe Russia Fd CEE 2.9 .4864 A Jan28 /Dec31 ProShares German Sov GGOV 1.8 .05232 M Dec31 /Dec24 ProShs Ult S&P Region Bkg KRU 0.8 .18499 Q Dec31 /Dec24 Vanguard Short Tm Govt Bd VGSH 1.1 .012 Dec30 /Dec28
Direxion All Cap In Sent KNOW 0.3 .05891 Q Dec30 /Dec24 ProShares Gl Listed Prv PEX 34.7 3.14185 Q Dec31 /Dec24 ProShs Ultra Basic Matls UYM 1.1 .10154 Q Dec31 /Dec24 Vanguard Short Tm Govt Bd VGSH 1.1 .056 M Dec30 /Dec28
Direxion iBillionaire ETF IBLN 1.5 .0914 Q Dec30 /Dec24 ProShares Hdg FTSE Europe HGEU 4.2 .38153 Q Dec31 /Dec24 ProShs Ultra Cnsmr Svcs UCC 0.2 .05495 Q Dec31 /Dec24 Vanguard Short Tm Govt Bd VGSH 1.1 .012 Dec30 /Dec28
Direxion NASDAQ100 EW Idx QQQE 0.1 .02405 Q Dec30 /Dec24 ProShares Hdg FTSE Japan HGJP 9.9 .90159 Q Dec31 /Dec24 ProShs Ultra Consumer Gds UGE 0.8 .21341 Q Dec31 /Dec24 Vanguard Shrt-Trm Crp Bnd VCSH 2.5 .167 M Dec30 /Dec28
Direxion S&P 500 Vol Resp VSPY 1.9 .25898 Q Dec30 /Dec24 ProShares HY-Interest Rt HYHG 5.1 .26322 M Dec31 /Dec24 ProShs Ultra Semicon USD 1.0 .20901 Q Dec31 /Dec24 Vanguard Shrt-Trm Crp Bnd VCSH 2.5 .059 Dec30 /Dec28
Direxion Val Line M & LC VLML 2.9 .0556 M Dec30 /Dec24 ProShares Inv Grade Int IGHG 2.9 .17918 M Dec31 /Dec24 ProShs UltraPro Finl Sel FINU 0.9 .16534 Q Dec31 /Dec24 Vanguard Shrt-Trm Crp Bnd VCSH 2.5 .004 Dec30 /Dec28
Direxion Val Line S & MC VLSM 4.0 .07303 M Dec30 /Dec24 ProShares Merger ETF MRGR 0.8 .07632 Q Dec31 /Dec24 ProShsUlProMidCap400 UMDD 0.1 .0184 Q Dec31 /Dec24 Vanguard Small-Cap VB 2.3 .626 Q Dec30 /Dec28
Direxion Value Line Cons VLLV 2.5 .05269 M Dec30 /Dec24 ProShares RAFI Long/Short RALS 2.1 .20827 Q Dec31 /Dec24 Reaves Utility Fund UTG 7.2 .15125 M Jan15 /Dec31 Vanguard Small-Cap Growth VBK 1.5 .462 Q Dec30 /Dec28
Direxion Zacks MLP Hi Inc ZMLP 9.6 .40 Q Dec30 /Dec24 ProShares S&P MC 400 REGL 2.3 .22597 Q Dec31 /Dec24 Reaves Utility Fund UTG 7.2 .15125 M Feb01 /Feb19 Vanguard Small-Cap Value VBR 3.0 .744 Q Dec30 /Dec28
Eaton Vance FR Incm Plus EFF 7.9 .094 M Jan13 /Dec31 ProShares S&P500 Div Aris NOBL 2.4 .29148 Q Dec31 /Dec24 Reaves Utility Fund UTG 7.2 .15125 M Mar31 /Mar18 Vanguard Tax-Exempt Bd VTEB 2.4 .103 M Dec30 /Dec28
ProShares Ultra Dow30 DDM 1.1 .17394 Q Dec31 /Dec24 Vangrd Intermed-Trm Cp Bd VCIT 3.8 .27 M Dec30 /Dec28 Vanguard Telecomm Svcs VOX 3.0 .639 Q Dec30 /Dec28
Eaton Vance FR Incm Tr EFT 7.3 .076 M Jan13 /Dec31
ProShares Ultra Finls UYG 1.4 .24066 Q Dec31 /Dec24 Vangrd Intrmd -Trm Gvt Bd VGIT 2.0 .109 M Dec30 /Dec28 Vanguard Total Intl Bd BNDX 3.1 .135 M Dec30 /Dec28
Eaton Vance Sr EVF 7.3 .035 M Jan13 /Dec31
ProShares Ultra Hi Yield UJB 4.9 .57956 Q Dec31 /Dec24 Vangrd Intrmd -Trm Gvt Bd VGIT 2.0 .015 Dec30 /Dec28 Voya Prime Rate Trust PPR 6.3 .0265 M Jan13 /Dec31
EatonVance TxAdv Opport ETO 10.1 .18 M Jan13 /Dec31
ProShares Ultra Hlth Care RXL 3.3 .53719 Q Dec31 /Dec24 Vangrd Intrmd -Trm Gvt Bd VGIT 2.0 .012 Dec30 /Dec28 WisdomTree Germany Hdg Eq DXGE 3.3 .25594 Dec28 /Dec23
EatonVnc SrFltRate EFR 7.7 .079 M Jan13 /Dec31
ProShares Ultra Inv Grade IGU 2.3 .33612 Q Dec31 /Dec24 Vanguard Cnsmr Dscrtionry VCR 1.5 .469 Q Dec30 /Dec28 WisdomTree Germany Hdg Eq DXGE 3.3 .40695 Dec28 /Dec23
European Equity Fd EEA 1.8 .07 SA Jan28 /Dec31
ProShares Ultra MidCap400 MVV 0.7 .1124 Q Dec31 /Dec24 Vanguard Consumer Staples VDC 2.8 .898 Q Dec30 /Dec28 WisdomTree Jap Hdg SmCap DXJS 2.5 .28359 Dec28 /Dec23
First Tr Engy Infr Fd FIF 9.3 .11 M Jan15 /Jan06
WisdomTree Jap Hdg SmCap DXJS 2.5 .59712 Dec28 /Dec23
First Tr MLP & Engy Incm FEI 11.4 .1183 M Jan15 /Jan06 ProShares Ultra Oil & Gas DIG 1.5 .11122 Q Dec31 /Dec24 Vanguard Div Appreciation VIG 2.4 .475 Q Dec30 /Dec28
WisdomTree UK Hdg DXPS 2.2 .07178 Dec28 /Dec23
First Tr Mortgage Incm Fd FMY 7.1 .085 M Jan15 /Jan06 ProShares Ultra QQQ QLD 0.2 .04596 Q Dec31 /Dec24 Vanguard Emg Mkts Govt Bd VWOB 5.9 .365 M Dec30 /Dec28
WisdomTree UK Hdg DXPS 2.2 .23929 Dec28 /Dec23
First Tr New Opps MLP FPL 11.7 .105 M Jan15 /Jan06 ProShares Ultra S&P500 SSO 1.2 .19357 Q Dec31 /Dec24 Vanguard Energy VDE 3.3 .683 Q Dec30 /Dec28
WT Japan Interest Rate JGBB .66999 Dec28 /Dec23
First Tr Strat High Fd II FHY 11.8 .11 M Jan15 /Jan06 ProShares Ultra Tech ROM 0.3 .0566 Q Dec31 /Dec24 Vanguard Fds MCap Grwth VOT 1.4 .355 Q Dec30 /Dec28
WT Japan Interest Rate JGBB .29375 Dec28 /Dec23
First Tr/Abrdn Glbl Opp FAM 9.0 .075 M Jan15 /Jan06 ProShares Ultra Utilities UPW 2.5 .54864 Q Dec31 /Dec24 Vanguard Fds Mid Cap Val VOE 2.5 .538 Q Dec30 /Dec28
Fst Tr Hi Inc Lg/Shrt Fd FSD 8.5 .10 M Jan15 /Jan06 ProShares UltraPro Dow 30 UDOW 0.8 .13365 Q Dec31 /Dec24 Vanguard Finls VFH 3.0 .367 Q Dec30 /Dec28 Foreign
FT Interm Duration Pfd FPF 9.2 .1625 M Jan15 /Jan06 ProShares USD Covered Bd COBO 2.2 .1822 M Dec31 /Dec24 Vanguard Health Care VHT 1.4 .476 Q Dec30 /Dec28 Altisource Residential RESI 3.0 .10 Q Jan15 /Dec31
New Germany Fund GF .8669 Jan28 /Dec31 ProSharesHedgeReplication HDG 0.0 .00032 Q Dec31 /Dec24 Vanguard Industrials VIS 2.2 .545 Q Dec30 /Dec28 Granite REIT GRP/U 6.0 .13933 M Jan15 /Dec31
Pioneer Divers Hi Incm Tr HNW 9.5 .115 M Jan06 /Dec31 ProShr Ultra 20 + Yr Trea UBT 1.7 .32114 Q Dec31 /Dec24 Vanguard Information Tech VGT 1.5 .403 Q Dec30 /Dec28
Pioneer Floating Rate Tr PHD 6.7 .06 M Jan06 /Dec31 ProShrs CDS NA HY Credit TYTE 4.3 .40675 Q Dec31 /Dec24 Vanguard Lg-Term Govt Bd VGLT 3.2 .201 M Dec30 /Dec28 Special
Pioneer High Income Trust PHT 14.6 .115 M Jan06 /Dec31 ProShrs Ultra 7-10 Yr Tr UST 0.9 .1267 Q Dec31 /Dec24 Vanguard Long-Trm Crp Bd VCLT 5.2 .369 M Dec30 /Dec28 MVC Capital MVC 7.3 .17 Jan08 /Dec31

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C10 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.

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

China Vanke
Can Afford
The Bank Fear Trade Didn’t Pay OVERHEARD
Warren Buffett has ad- trade 19% below their Oct. In the case of Ford Motor,
Lower for Longer
To Wait vised investors to “be fearful
when others are greedy and
to be greedy only when oth-
Share-price performance
10, 2008, closing price. Citi-
group shares are off 63%.
Even those with the stron-
maybe old dogs really can
learn new tricks.
Ford shares jumped Tues-
China Vanke is battling to ers are fearful.” 50% gest postcrisis performance day morning after a report
fend off an unwanted suitor. While that might often be Morgan Stanley haven’t kept up. Goldman from Yahoo Autos that the
The world’s largest property a good strategy, it proved Bank of America Sachs is up 100%. Wells auto maker will announce a
Citigroup
developer by sales has time painfully wrong for investors 0 Fargo is up 91%. J.P. Morgan partnership next month with
on its side. who tried to pick up bank has risen 57%. The only one Alphabet, the parent of
Vanke says it is going to stocks cheaply at the height of the top six banks whose Google, to develop self-driving

JUSTIN SULLIVAN/GETTY IMAGES

issue more shares as part of of the financial crisis. shares have beaten the mar- vehicles. Neither company has
an asset restructuring plan. The worst week in the –50 ket is the only one that sank confirmed the reports. But
It isn’t clear how many. It is 119-year history of Dow on that volatile Friday in whether or not a partnership
obvious, though, that it is Jones Industrial Average 2008: Morgan Stanley’s eventually comes to fruition,
meant to unseat its biggest ended on Oct. 10, 2008. shares have risen 229% since it is clear that Ford is aggres-
–100
shareholder, Baoneng Group. Stocks dropped 18% Oct. 10, 2008’s closing bell. sively investing in cutting-
Baoneng is a privately from Monday to Friday, leav- 2010 But this is largely an arti- edge technology.
owned Chinese property-to- ing investors stunned but Source: FactSet fact of just how far Morgan Last week, Ford an-
finance conglomerate that some looking for bargains. THE WALL STREET JOURNAL. Stanley’s shares had fallen nounced that it had secured a
now owns 22% of the devel- Fear and greed could be seen by Oct. 10, 2008. Investors permit to commence testing
oper, surpassing state-owned in the intraday moves of the America and Goldman While the broader market who bought the prior Fri- of autonomous cars on public
China Resources Group as stock market, with the Dow Sachs saw single-digit per- has made a tremendous day or the following Fri- roads in California. Any part-
Vanke’s largest shareholder. plunging 697 points after the centage rises, while J.P. comeback, it hasn’t been day also would have under- nership with Google would
Vanke probably prefers deep- opening bell only to surge Morgan Chase and Citi- kind to those who got greedy performed. The relative certainly give this project
pocketed state-owned enter- 322 points in the last half- group shares were up about about banks during those performance of the other big some added heft. Separately,
prises as its potential allies, hour of trading. 17%. The outlier that Fri- fearful days. The S&P 500 banks, however, isn’t simi- Ford also announced earlier
but Baoneng holds 15% of Amid this epic volatility, day was Morgan Stanley. has gained 126%, while the larly affected. this month that it will be in-
Vanke and can’t go above some snapped up bank Despite reports that a capital KBW Nasdaq Bank Index is Trying to climb 2008’s vesting up to $4.5 billion in
30% without making an offer stocks. A Dow Jones index of injection from Mitsubishi up just 37%. The picture is wall of worry turned out to electric cars over the next
for the whole company. that sector rose 9% that Fri- UFJ Financial Group was still starker for individual banks. be an expensive mistake. five years.
There is also the question day. Shares of Bank of “on track,” shares fell 9%. Bank of America shares now —John Carney Of course, these are long-
of price. Vanke’s Shenzhen- dated, costly projects with an
listed stock is no longer uncertain chance of payoff.
cheap. A new investor would
likely demand a discount.
Others, such as Anbang In-
Europe’s Bond Bandwagon Hits Bumpy Road But embracing higher risk
projects may be what Ford
needs to get its stock price
surance Group, a private in- For European corporate- are negative for the first are a poor mix when trouble moving in the right direction.
surer that recently bought a bond investors, 2015 looks Road to Nowhere time since 2008 following hits. Investors may regret After Tuesday’s rally, Ford
5% stake in Vanke, won’t like like a year to forget. Euro- Cumulative total return on euro 2014’s strong returns of their appetite for such debt. shares are down nearly 9%
that. Baoneng and Anbang denominated investment- investment-grade corporate bonds 8.4%. Some argue that the Third, frequent concerns this year, despite a run of tor-
together own 27% of the grade bonds have lost 0.34% wider starting point for around bond-market liquidity rid sales in the U.S.
2%
company, a big enough block according to Barclays. But spreads augurs well for 2016. persist in the U.S., where high- Ford’s third-quarter tally of
to potentially derail Vanke’s this year has some valuable 1 But even on this basis, re- yield funds have hit trouble earnings before interest,
plan. Anbang hasn’t com- lessons for 2016. 0 turn forecasts are slim. and in Europe, where price taxes, depreciation, and amor-
mented on the situation. The start of 2015 offered The story of 2015 points moves have been larger than tization—$4.3 billion—was its
–1
There is one thing work- reason for hope. Spreads be- to risks the market faces. might be expected when com- strongest quarterly result
ing in favor of Vanke: Ba- tween corporate- and gov- –2 First, loose monetary policy panies have faced problems. since 2007. Fears that the
oneng’s use of leverage. Ac- ernment-bond yields nar- J F MA MJ J A S O N D only goes so far. It can only Pricing liquidity risk in invest- auto bull market won’t last
cording to filings, Baoneng rowed sharply as fever built Source: Barclays create the backdrop for ment-grade corporate bonds forever, wobbly overseas mar-
has put down only a third of around the European Central THE WALL STREET JOURNAL. growth; it can’t address fun- continues to be a conundrum. kets, and the perceived threat
the capital it used to buy Bank’s quantitative-easing damental corporate prob- It is hard to value something from upstarts all have re-
Vanke shares. The rest came program. By mid-April, in- commodities sector took a lems. More may emerge as that has worth only in rela- strained the stock price.
from investors in Chinese vestment-grade bond buyers toll. By December, invest- the monetary tide goes out, tively extreme scenarios. Auto upstarts such as
wealth management prod- were up 1.8%. But that was ment-grade bonds had with the U.S. Federal Reserve Wider spreads don’t Uber Technologies and Tesla
ucts, a popular way to raise as good as it got. In April crawled back into positive having moved off zero. sound reassuring for inves- Motors have commanded the
capital without being labeled and May, a sharp selloff in territory, only to be hit by Second, this year has been tors faced with more risk brunt of the investing public’s
as borrowing. A drawn-out underlying government the ECB’s botched monetary- good to corporate borrowers and a less supportive policy attention in recent years. But
battle could heap extra fi- bonds first hammered re- policy decisions. The end re- who loaded up on histori- backdrop. This year was as Ford’s recent maneuvering
nancing costs on Baoneng. turns. Then company prob- sult: Spreads are 0.5 percent- cally cheap debt while push- tough; next year might just demonstrates, the incum-
Good things come to those lems such as those at Volks- age point wider than they ing maturities out. But low offer more of the same. bents are pushing back.
who wait. —Jacky Wong wagen and in the started 2015. Total returns coupons and long maturities —Richard Barley

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 TotBdAdml
Explanatory Notes Data provided by Fund
10.66 -0.03 0.5 STAR
NAV Chg % Ret TotIntBdIdxAdm 21.12 -0.10 1.2
24.38 +0.10 -0.3 BalInst 29.37 +0.13 0.4 Average Yields of Major Banks Tuesday, December 22, 2015
STIGrade 10.57 -0.01 1.0 DevMktsIndInst 11.75 +0.06 -0.8
Top 250 mutual-funds listings for Nasdaq-published share classes with MFS Funds Class A Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
net assets of at least $500 million each. NAV is net asset value. TotIntlAdmIdx r 24.11 +0.13 -4.8 TgtRe2015 15.20 +0.04 -0.6 ExtndInst 63.31 +0.50 -3.7
Percentage performance figures are total returns, assuming reinvestment ValueA p 32.69 +0.32 -1.1 TotStAdml 50.64 +0.44 0.1 TgtRe2020 28.22 +0.10 -0.8 GrwthInst 54.58 +0.38 3.0 National average
of all distributions and after subtracting annual expenses. Figures don’t MFS Funds Class I TxMIn r 11.74 +0.07 -0.9 TgtRe2025 16.36 +0.07 -1.0 InPrSeIn 10.33 -0.02 -2.0 Savings 0.09 0.07 0.07 0.09 0.14 0.23 0.38 0.38 0.82
reflect sales charges (“loads”) or redemption fees. NET CHG is change in ValueI 32.85 +0.31 -0.9 ValAdml 31.73 +0.33 -1.1 TgtRe2030 28.67 +0.14 -1.3 InstIdx 186.09 +1.64 1.1
NAV from previous trading day. YTD%RET is year-to-date return. 3-YR Jumbos 0.18 0.07 0.08 0.10 0.15 0.26 0.42 0.41 0.85
MFS Funds Instl WdsrllAdml 59.34 +0.57 -3.3 TgtRe2035 17.56 +0.10 -1.6 InstPlus 186.10 +1.64 1.1
%RET is trailing three-year return annualized.
IntlEq 20.48 +0.13 -0.4 WellsIAdml 59.37 +0.12 1.3 InstTStPlus 45.81 +0.40 0.2 Weekly change
TgtRe2040 29.20 +0.19 -1.9
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. Mutual Series WelltnAdml 66.38 +0.38 0.1 MidCpInst 32.65 +0.12 -1.9 Savings 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00
j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. TgtRe2045 18.30 +0.12 -1.9
GlbDiscA 28.64 +0.23 -4.4 WndsrAdml 64.19 +0.65 -3.8
TgtRe2050 29.06 +0.19 -1.9
MidCpIstPl 161.02 +0.58 -1.9 Jumbos 0.00 0.00 0.00 0.01 0.00 0.00 0.01 0.01 0.00
p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock VANGUARD FDS
split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. GlbDiscz 29.13 +0.24 -4.1 SmCapInst 52.88 +0.16 -3.9
TgtRetInc 12.73 +0.01 -0.2
x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to Oakmark Funds Cl I DivdGro 22.42 +0.20 2.6 STIGradeInst 10.57 -0.01 1.2
incomplete price, performance or cost data. NE-Not released by Lipper; data EqtyInc 28.48 +0.21 -4.9 GNMA 10.66 -0.02 1.3 TotIntBdIxInv 10.56 -0.05
WellsI 24.51 +0.05
1.1
1.2
TotBdInst 10.66 -0.03 0.5 Consumer Savings Rates
under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Oakmark 62.65 +0.54 -4.3 HlthCare r 230.02 +0.85 11.7 TotBdInstPl 10.66 -0.03 0.5
Welltn 38.43 +0.22 ... Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed-
OakmrkInt 21.11 +0.10 -5.0 IntlVal 30.97 +0.19 -6.8 TotIntBdIdxInst 31.70 -0.14 1.2
Tuesday, December 22, 2015 WndsrII 33.44 +0.32 -3.4 erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the second quarter
Old Westbury Fds INSTTRF2025 19.20 +0.09 NS TotIntlInstIdx r 96.41 +0.50 -4.8
Net YTD Net YTD
LifeCon 18.13 +0.03 -0.2 VANGUARD INDEX FDS TotItlInstPlId r 96.42 +0.50 -4.7 of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
Fund NAV Chg % Ret Fund NAV Chg % Ret LrgCpStr 12.42 +0.07 -1.5 not an indication of financial strength or weakness. Information is believed to be reliable, but not
Oppenheimer Y LifeGro 28.12 +0.16 -1.4 500 187.96 +1.66 1.0 TotStInst 50.65 +0.44 0.1
American Century Inv ContraK 98.86 +0.54 6.6 LifeMod 23.67 +0.09 -0.7 ExtndIstPl 156.24 +1.25 -3.6 VirtusFunds Cl I guaranteed.
DevMktY 29.99 +0.07-13.8
Ultra 34.92 -1.71 5.9 CpInc r 9.10 ... -1.7
American Funds Cl A DivIntl 34.81 +0.14 2.4
IntGrowY 35.69 +0.16 2.9 Primcp r
PrmcpCor
99.64
21.81
+0.88 2.5
+0.17 0.8
TotIntl
TotSt
14.42 +0.08
50.63 +0.44
-4.8
...
EmMktI
Western Asset
8.93 -0.05 -8.9 High yield savings
AmcpA p 25.87 +0.22 0.5 Parnassus Fds Bank/rank Yield Bank/rank Yield
DivIntlK r 34.74 +0.15 2.5 SelValu r 27.15 +0.22 -4.3 VANGUARD INSTL FDS CorePlusBdI 11.44 -0.02 1.3
AMutlA p 33.75 +0.31 -3.1 ParnEqFd 37.51 +0.34 -0.4 Phone number Minimum (%) Phone number Minimum
GroCo 136.59 +0.66 7.6 (%)
PIMCO Fds Instl
BalA p 23.80 +0.12 1.6 GrowCoK 136.48 +0.66 7.7
AllAsset NA ... NA Money market and savings account Six-month CD
BondA p
CapIBA p
12.61
55.59
-0.02
-0.16
0.3
-4.2
InvGrBd
LowP r
11.05
47.60
-0.05 -0.4
+0.32 -0.9
ShortT
TotRt
NA
10.10
... NA
-0.02 0.9
Borrowing Benchmarks | WSJ.com/bonds iGObanking.com /3 $25,000 1.10 AloStar Bank of Commerce /5 $1,000 0.90
CapWGrA 43.28 -0.67 -2.6 LowPriStkK r 47.55 +0.32 -0.8 (888) 432-5890 (877) 738-6391
PIMCO Funds A GE Capital Bank /0 $0 1.05 EverBank /4 $1,500 0.90
EupacA p 46.61 +0.16 -1.1 MagIn 89.39 +0.68 4.0
FdInvA p 50.57 -1.59 2.8 OTC 83.05 +0.17 10.4
TotRetA
PIMCO Funds D
10.10 -0.02 0.5 Money Rates December 22, 2015 (855) 730-7283 (855) 228-6755
GwthA p 41.12 -3.35 4.9 Puritn 20.29 +0.09 1.6 Ally Bank /4 $0 1.00 California First National Bank /5 $5,000 0.90
HI TrA p 9.31 +0.02 -8.1 IncomeFd NA ... NA Key annual interest rates paid to borrow or lend money in U.S. and (877) 315-2559 (800) 735-2465
SrsInvGrdF 11.06 -0.04 -0.2
PIMCO Funds Instl
ICAA p 33.25 +0.34 -1.8 StratInc 10.13 +0.01 -1.9 international markets. Rates below are a guide to general levels but
IncoA p 20.14 +0.11 -1.9 TotalBond 10.28 -0.01 -0.5
IncomeFd NA ... NA One-month CD One-year CD
N PerA p 38.02 +0.16 4.8 Fidelity Selects
PIMCO Funds P don’t always represent actual transactions. Lone Star Bank /3 $1,000 0.15 AloStar Bank of Commerce /5 $1,000 1.26
IncomeP NA ... NA (713) 358-9400 (877) 738-6391
NEcoA p 35.95 -2.01 3.8 Biotech r 231.98 -0.82 11.8 Inflation Other short-term rates
Price Funds VirtualBank /4 $10,000 0.15 California First National Bank /5 $5,000 1.26
NwWrldA 50.16 +0.22 -6.2 Health r 206.72 +1.54 5.8
BlChip 72.21 +0.42 10.9 Nov. index Chg From (%) Week 52-Week (877) 998-2265 (800) 735-2465
SmCpA p 43.32 -2.67 1.9 Fidelity Spartan
CapApp 24.91 +0.12 4.8 level Oct. '15 Nov. '14 Latest ago high low AloStar Bank of Commerce /5 $1,000 0.10 iGObanking.com /3 $1,000 1.25
TxExA p 13.08 ... 2.9 500IdxInv 71.60 +0.63 1.0
EmMktS 28.69 +0.17-10.9 (877) 738-6391 (888) 432-5890
WshA p 38.27 +0.35 -0.6 500IndInst 71.61 +0.64 1.1 Call money
AMG Managers Funds Fidelity Spartan Adv EqInc 28.32 +0.29 -7.1 U.S. consumer price index
YacktmanFd 23.70 +0.18 -5.7 500IdxAd 71.60 +0.63 1.1 EqIndex 54.80 +0.48 0.8 All items 237.336 –0.21 0.5 2.25 2.00 2.25 2.00 Two-month CD Two-year CD
AQR Funds ExtMktAd r 49.99 +0.40 -3.7 Growth 53.48 +0.27 10.5 Core 244.075 0.04 2.0 Lone Star Bank /3 $1,000 0.15 Silvergate Bank /4 $25,000 1.47
HelSci 68.58 +0.27 12.5
Commercial paper
MgdFutStrI NA ... NA IntAd r 35.61 +0.17 -1.7 (713) 358-9400 (800) 353-6436
HiYield 6.14 +0.01 -4.0 30 to 270 days n.q. ... ... ...
Artisan Funds TotMktAd r 58.49 +0.51 0.1 International rates VirtualBank /4 $10,000 0.15 AloStar Bank of Commerce /5 $1,000 1.46
Intl Inv 28.56 +0.19 -4.3 First Eagle Funds InstlCapG 28.75 +0.14 9.5 Commercial paper (AA financial) (877) 998-2265 (877) 738-6391
BlackRock Funds A GlbA 51.17 +0.34 -1.3 Intl G&I 13.04 +0.08 -3.4 Week 52-Week Applied Bank /5 $0 0.05 Synchrony Bank /5 $2,000 1.45
IntlStk 15.19 +0.08 -1.4 90 days 0.58 0.64 0.64 0.06
GlblAlloc p 17.75 +0.05 -1.5 FMI Funds Latest ago High Low (800) 616-4605 (800) 903-8154
BlackRock Funds C LgCap 18.56 +0.20 -2.7 MCapGro 72.71 +0.46 5.7 Euro commercial paper
GlblAlloc t 16.18 +0.05 -2.2 FPA Funds MCapVal 24.90 +0.28 -3.6 Prime rates 30 day n.q. -0.08 -0.02 -0.12 Three-month CD Five-year CD
BlackRock Funds Inst N Horiz 42.37 +0.23 4.3 n.q. n.q. -0.01 -0.09 EverBank /4 $1,500 0.55 Barclays /4 $0 2.25
FPACres 30.91 +0.15 -2.5 U.S. 3.50 3.25 3.50 3.25 Two month
EqtyDivd 20.95 +0.16 -0.3 FrankTemp/Frank Adv N Inc 9.37 -0.02 0.2 (855) 228-6755 (888) 720-8756
Canada 2.70 2.70 3.00 2.70 Three month n.q. n.q. 0.01 -0.08
GlblAlloc 17.84 +0.05 -1.3 IncomeAdv 2.06 +0.01 -8.6 OverS SF r 8.94 +0.03 -3.1 California First National Bank /5 $5,000 0.55 EverBank /4 $1,500 2.25
Japan 1.475 1.475 1.475 1.475 Four month n.q. n.q. 0.02 0.00
HiYldBd 7.14 +0.01 -4.7 FrankTemp/Franklin A R2015 13.65 +0.05 -0.8 (800) 735-2465 (855) 228-6755
R2020 19.64 +0.08 -0.6
Five month n.q. n.q. 0.04 0.01
StratIncOpptyIns 9.87 ... -0.3 CA TF A p 7.51 ... 3.5 Policy Rates Six month n.q. n.q. 0.06 0.02 First Internet Bank of Indiana /4 $1,000 0.45 Synchrony Bank /5 $25,000 2.25
Davis Funds A Fed TF A p 12.37 ... 2.4 R2025 14.92 +0.07 -0.4 (888) 873-3424 (800) 903-8154
R2030 21.75 +0.11 -0.3 Euro zone 0.05 0.05 0.05 0.05
NYVen A 30.64 +0.19 2.1 Growth A p 73.23 +0.52 1.7 0.50 0.50 0.50
Libor
R2035 15.74 +0.08 -0.2 Switzerland 0.50
Dimensional Fds IncomeA p 2.08 +0.01 -8.7
R2040 22.51 +0.13 -0.1 Britain 0.50 0.50 0.50 0.50 One month 0.41750 0.34450 0.41950 0.16625 High yield jumbos - Minimum is $100,000
5GlbFxdInc 10.91 -0.01 1.5 RisDv A p 47.72 +0.61 -3.6 Three month 0.59435 0.51775 0.59435 0.25110 Money market and savings account Six-month CD
SmCapStk 38.59 +0.31 -3.2 Australia 2.00 2.00 2.50 2.00
EmgMktVa 20.47 +0.10-18.5 FrankTemp/Franklin C Six month 0.81950 0.74850 0.81950 0.35390
EmMktCorEq 15.81 +0.07-14.6 Income C t 2.10 +0.01 -9.5 Value 31.15 +0.30 -2.1 Silvergate Bank /4 1.11 AloStar Bank of Commerce /5 0.90
Schwab Funds
Overnight repurchase One year 1.13100 1.06425 1.13100 0.60990
IntlCoreEq 11.28 +0.05 -1.2 FrankTemp/Temp A (800) 353-6436 (877) 738-6391
IntSmCo 17.00 +0.06 4.6 S&P Sel 31.47 +0.28 1.0 U.S. 0.34 0.23 0.41 0.07 Euro Libor ableBanking,adivisionofNortheastBank/4 1.00 EverBank /4 0.90
GlBond A p 11.58 +0.01 -4.3
IntSmVa 18.46 +0.08 2.8 Growth A p 21.76 +0.13 -7.1 TIAA/CREF Funds One month -0.202 -0.196 0.012 -0.202 (877) 505-1933 (855) 228-6755
Dimensional Fds FrankTemp/Temp Adv EqIdxInst 15.03 +0.13 0.2 U.S. government rates Three month -0.126 -0.124 0.059 -0.129 EH National Bank /2 0.86 My e-BAnC by BAC Florida Bank /4 0.85
US CoreEq1 17.14 +0.16 -1.5 GlBondAdv p 11.54 +0.01 -4.0 Tweedy Browne Fds Discount (888) 392-5265 (855) 512-0989
Six month -0.038 -0.029 0.146 -0.058
US CoreEq2 16.32 +0.16 -3.2 GMO Trust Class IV GblValue 25.35 +0.10 -2.6
1.00 0.75 1.00 0.75 One year 0.059 0.060 0.296 0.031 One-month CD One-year CD
US Small 28.40 +0.28 -3.1 IntlEq 19.95 +0.09 -6.2 VANGUARD ADMIRAL
US SmCpVal 30.54 +0.37 -7.7 Harbor Funds 500Adml 187.95 +1.66 1.1 Euro interbank offered rate (Euribor) USAA /5 0.22 My e-BAnC by BAC Florida Bank /4 1.30
Federal funds
USLgVa 30.72 +0.32 -3.8 CapApInst 60.57 +0.38 10.6 BalAdml 29.37 +0.13 0.4 (800) 583-8295 (855) 512-0989
Effective rate 0.3600 0.1700 0.3800 0.0600 One month -0.201 -0.194 0.025 -0.201
Dodge & Cox IntlInst r 58.95 +0.31 -4.6 CAITAdml 11.84 -0.01 3.1 VirtualBank /4 0.15 AloStar Bank of Commerce /5 1.26
High 0.5625 0.3125 0.5900 0.2500 Three month -0.131 -0.132 0.080 -0.133
Balanced 93.97 +0.48 -3.3 Invesco Funds A CapOpAdml r 118.30 +0.81 2.4 (877) 998-2265 (877) 738-6391
EMAdmr 27.36 +0.10-15.3 Low 0.2800 0.0900 0.2900 0.0100 Six month -0.041 -0.041 0.174 -0.051
Income 13.28 -0.02 -0.7 EqIncA 9.60 +0.06 -2.6 One year 0.060 0.060 0.328 0.039 AloStar Bank of Commerce /5 0.10 Synchrony Bank /5 1.25
Intl Stk 36.40 +0.30-11.5 John Hancock Class 1 EqIncAdml 61.70 +0.55 0.5 Bid 0.3500 0.1400 0.3500 0.0000
(877) 738-6391 (800) 903-8154
Stock 161.71 +1.38 -5.1 LSBalncd 15.10 +0.06 -1.4 ExplrAdml 82.52 +0.78 -4.5 Offer 0.5200 0.2500 0.5200 0.0500 Value 52-Week
DoubleLine Funds LSGwth 16.06 +0.08 -1.4 ExtndAdml 63.31 +0.50 -3.7 Latest Traded High Low Two-month CD Two-year CD
TotRetBdI NA ... NA John Hancock Instl GNMAAdml 10.66 -0.02 1.4 Treasury bill auction VirtualBank /4 0.15 CIT Bank /4 1.47
GrwthAdml 54.58 +0.38 3.0 4 weeks 0.195 0.205 0.235 0.000 DTCC GCF Repo Index
TotRetBdN NA ... NA DispValMCI 19.01 +0.18 1.3 (877) 998-2265 (855) 462-2652
Fidelity Advisor A JPMorgan Inst Class HlthCareAdml r 97.07 +0.36 11.8 13 weeks 0.250 0.280 0.280 0.000 Treasury 0.352 125.850 0.450 0.059 Applied Bank /5 0.05 AloStar Bank of Commerce /5 1.46
NwInsghtA p 26.11 +0.17 2.3 MdCpVal 33.77 +0.33 -2.9 HYCorAdml r 5.52 +0.01 -2.2 26 weeks 0.515 0.585 0.585 0.065 MBS 0.371 74.680 0.670 0.075 (800) 616-4605 (877) 738-6391
Fidelity Advisor I JPMorgan R Class InfProAd 25.36 -0.05 -1.9 Open Implied Citizens Trust Bank /3 0.05 Synchrony Bank /5 1.45
NwInsghtI 26.59 +0.17 2.5 CoreBond 11.59 -0.02 1.1 IntlGrAdml 66.99 +0.28 -0.6 Secondary market Settle Change Interest Rate (404) 659-5959 (800) 903-8154
Fidelity Freedom JPMorgan Select Cls ITBondAdml 11.28 -0.06 1.4
ITIGradeAdml 9.68 -0.02 1.6
Fannie Mae DTCC GCF Repo Index Futures Three-month CD Five-year CD
FF2020 14.96 +0.05 -0.6 CoreBond 11.58 -0.02 0.8
FF2025 12.79 +0.04 -0.6 USLgCpCorPls 26.70 +0.19 -0.7 LTGradeAdml 10.07 -0.05 -1.6 30-year mortgage yields Treasury Dec 99.675 0.010 6313 0.325 EverBank /4 0.55 Synchrony Bank /5 2.25
FF2030 15.66 +0.08 -0.5 Lazard Instl MidCpAdml 147.80 +0.54 -1.9 30 days 3.532 3.579 3.750 3.024 Treasury Jan 99.570 0.025 9192 0.430 (855) 228-6755 (800) 903-8154
FreedomK2020 13.91 +0.04 -0.5 EmgMktEq 13.58 +0.04-19.3 MorgAdml 83.71 +0.56 6.6 60 days 3.568 3.613 3.788 3.080 Treasury Feb 99.575 0.025 5756 0.425 First Internet Bank of Indiana /4 0.45 CIT Bank /4 2.25
FreedomK2025 14.50 +0.06 -0.5 Loomis Sayles Fds MuHYAdml 11.31 ... 4.0 (888) 873-3424 (855) 462-2652
FreedomK2030 14.76 +0.08 -0.5 LSBondI 12.84 +0.04 -7.1 MuIntAdml 14.26 ... 2.9 Notes on data: AloStar Bank of Commerce /5 0.40 EverBank /4 2.25
FreedomK2035 15.18 +0.09 -0.5 Lord Abbett A MuLTAdml 11.76 -0.01 3.9 (877) 738-6391 (855) 228-6755
U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S.
FreedomK2040 15.22 +0.09 -0.5 ShtDurIncmA p 4.31 -0.01 0.3 MuLtdAdml 11.01 ... 1.3 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 MuShtAdml 15.80 ... 0.5 Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
AMgr50% 16.00 +0.05 -0.7 ShtDurIncm 4.31 ... 0.7 PrmcpAdml r 103.21 +0.92 2.6 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 21.18 +0.09 0.2 Metropolitan West REITAdml r 111.34 -1.19 0.9 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 21.18 +0.09 0.3 TotRetBd 10.62 -0.02 -0.1 SmCapAdml 52.88 +0.16 -4.0 NYSE Liffe US. month, three (3) of which may be checks. Rates are subject to change.
BluCh 68.79 +0.33 6.0 TotRetBdI 10.62 -0.02 0.2 STBondAdml 10.44 -0.02 1.0 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 98.94 +0.54 6.5 TRBdPlan 10.01 -0.01 0.3 STIGradeAdml 10.57 -0.01 1.1 General Electric Capital Corp.; Tullett Prebon Information, Ltd. Internet: www.bankrate.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

HOME & DIGITAL

Along Came a Spider Football Family

Intrigue
A Stanford professor’s Alfa Romeos MY RIDE | D4 SPORTS | D6

© 2015 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Wednesday, December 23, 2015 | D1

Gadgets to
Get Your Yes, Mom, There Is a Santa
Child Off the BELIEVE!
Internet Below, the percentage of
children, by age, who say
BY WILSON ROTHMAN
Santa Claus is real, according
My children can’t do anything to a 2011 study of 101 children.
online without my knowing.
Whether they visit a website or

i
fire up an Internet-connected app
on their tablets or iPods, I see it in
action. And when it’s bedtime—or
just time for everybody to get
their heads out of their devices—
the Internet access magically cuts

83%
off.
I can do it because of a new
kind of gadget.
It’s easily in-
stalled on a home 5-year-olds
network to moni-

i
tor the activity of
connected de-
TECH vices, and even
REVIEW control what they
can and can’t do
online.

63%
The best thing about it is that
you don’t have to install any soft-
ware on the controlled devices,
just a single app on your own
smartphone.
However, the ability to snoop
7-year-olds

i
on your children (or anyone else in
your home) is not something to
take lightly. It can’t replace a frank
discussion about Internet safety
and how to treat others online.
I tested two network nannies,

33%
Circle and KoalaSafe, both $99,
with my 7-year-old daughter and
5-year-old son. The gadgets do es-
sentially the same job, with
slightly different execution. 9-year-olds
DANIEL SICOLO/CORBIS

Both work by watching the traf-

fic on your network as it ebbs
from and flows to your tablets,
phones and iPods. You, the parent,
identify your children’s devices in
the app, then apply filters for any-
thing you don’t want them to re-
ceive. While both monitor any app,
Circle’s app is only on iOS; Koala-
Safe is on Android and iOS.
In addition to blocking the ob-
vious sites that spell trouble—
porn, dating, gambling, etc.—you
can block or set limits on social
media sites and apps, online
games and others you want more
control over. You can even enter
specific sites by name.
The biggest difference is that
Circle scans all the traffic on your
home network, controlling traffic
that’s going to and from the de-
vices you’ve asked it to monitor.
KoalaSafe creates its own chil-
dren’s Wi-Fi network and only
keeps watch over devices con-
nected to that.
When your children go to their
devices, nothing looks different,
but certain things just won’t work.
Circle tries a bit harder than Ko-
alaSafe to remedy the situation,
offering up content that is ap-
proved for children—mainly videos
Please see WATCH page D2
Source: Jacqueline Woolley
Parents need him to be real, too;
a change in a child’s belief can be
a poignant Christmas moment
BY CLARE ANSBERRY
‘Twas the week before Christmas, and Car-
oline Jorgensen was at a loss, trying to figure
out whether her oldest son believed in Santa.
She asked the 12-year-old to write a wish
list letter to Santa. He shrugged his shoulders
and didn’t give her anything. When she
brings up Santa, he becomes quiet. Now, she
is struggling with whether to initiate the
“talk” or not. She knows, she says, that
“some of the magic will be lost”—both for
him and for her.
When belief in Santa goes, so does much
of the season’s enchantment, not just for the
children, but their parents, too. Year after
year, they mastermind the magic, wrapping
and hiding presents, writing letters from
Santa and filling stockings late at night.
Though it can be hectic and exhausting,
Christmas often represents their own fondest
childhood memories. They don’t want that
sweet stage to end for their children, either.
A child’s belief in Santa has deeper mean-
ing for parents, says Jacqueline Woolley, a
psychology professor at the University of
Texas. It signifies the all-too-short time in a
child’s life when everything is good and noth-
ing impossible. “Once the child stops believ-
ing, they see their child entering the same
world they live in, where not everything is
possible,” says Dr. Woolley, who researches
children’s understanding of reality.
Of course, she says, many parents are re-
lieved. There is more to Christmas than
Santa, and they don’t want their children too
focused on presents and the man delivering
them. Others have harbored uneasiness about
stretching the truth and worried their chil-
dren wouldn’t trust them again.
That is rarely the case, she says, adding
that a child’s disappointment is generally
short-lived and is traded for the thrill of be-
ing in on the secret, as well as new traditions
such as baking cookies for friends, caroling
or performing in church pageants.
There is no single age when kids stop be-
lieving in Santa. About 83% of 5-year-olds
claim Santa is real, says Dr. Woolley. The per-
centage drops to 63% for 7-year-olds, accord-
ing to a 2011 study she led of 101 children
who watched video clips of adults talking
about fantasy figures, including Santa, and
then were polled on their beliefs. By the age
of 9, only a third believe in Santa, and even
then doubts linger. One afternoon, a 9-year-
old may be convinced that Santa doesn’t exist
after talking with kids on the playground.
That same evening, after watching the movie
“The Polar Express,” about a skeptical boy
who meets Santa, he isn’t so sure.
Parents think their children believe a lot
longer than they do. “Kids are skeptical a lot
sooner than parents realize,” she says, some-
thing she discovered by polling her university
students who said they never told their par-
ents for fear they wouldn’t get any presents.
Eleven-year-old Amy Nowell found out
about Santa last spring, while reading her
mom’s blog posts, including one about Amy
still believing in Santa in spite of her class-
mates’ doubts. Amy kept the discovery to
herself until a few weeks ago, when her
mother, Julie, a freelance writer, mentioned
that Santa would soon arrive at their island
off the coast of British Columbia.
“I got kind of silent because I knew there
wasn’t actually a Santa,” says Amy, who then
Please see SANTA page D2

A Secret to Great Hair (and Sales): Stop Shampooing BY ANNE MARIE CHAKER
The most stylish woman in the
office may not have washed her
hair for a week.
Infrequent shampooing appeals
to women who are tired of the
morning routine: shampoo, condi-
tioner, hair dryer, hot iron and
round brush. A polished look
might take an hour or more. In-
stead, women might still take a
daily shower, but cover their hair
to keep it dry.
Busy women are discovering
that less fuss might also be fash-
ionable: Messy, tousled hairdos are
appearing in magazines and on
runways. Now, those looks are
showing up at work, whether it is
beachy curls or straight hair worn
half-up, half-down.
Women are buying less regular
shampoo as a result. But, per-
sonal-care companies are finding
ways to stock their bathroom
countertops with new products
that help them avoid the chore.
Women are spending just as much
ULTA
A 4-ounce can of dry sham-
poo—a powdery spray that ab-
sorbs the scalp’s oils—from Living
Proof asks “how long can you go?”
without washing. L’Oréal’s Redken
line of Pillow Proof products has a
two-day extender for a prolonged
hairstyle. Oribe Hair Care’s Impe-
rial Blowout styling cream prom-
ises a hairdo that “lasts for days.”
The quest for perfect hair days
has drawn thousands of women
into blow-dry bars, where they pay
$40 to $50 for a shampoo and
blowout, their specialty. Many do
this in their Sunday afternoon
sweats as a preparation for the
week ahead. It is a throwback to
earlier decades, when women went
to a salon once a week, socialized,
and got their hair set with rollers.
In some communities, that never
ceased being a common practice.
About 200 blowout bars are
now open in the U.S., estimates
Vanessa Yakobson, partner of Blo
Blow Dry Bar, a Toronto-based
franchise of 65 salons. Women typ-
ically want the hairstyle to last a
cording to a survey of 1,000
women by Unilever’s Dove brand.
Celebrities from Jennifer Law-
rence to Gwen Stefani are often
photographed in messy chignons,
fishtail braids and topknots
perched high on the head—all of
which stay in place better with
slightly dirty hair. “You need that
grit,” says Los Angeles hair stylist
Jenny Cho. “Second-day hair, a lit-
tle bit of powder, hair spray and
bobby pins does it.”
Kristin Huxta Bradley says the
third day after she washes her hair
is her favorite. That day, the 30-
year-old Philadelphia public rela-
tions regional director says her
hair looks a little less “puffy and
big” than when it’s freshly washed.
She might wear it down or up in a
clip. Ms. Bradley says she enjoys
when co-workers compliment her
hair and she can tell them “It’s
Day 3,” she says. “It’s a point of
pride.”
She once washed her hair every
day. Now Ms. Bradley does it once
or twice a week. She buys about

or more on them—style-extending few days. One in three women say one bottle of shampoo every six
At Ulta Beauty, a chain of beauty stores with salons, women can get a sprays, dry shampoos, and special they will skip a shower or a work- months, down from two bottles in
blowout and buy products like style-extenders or dry shampoo to make it last. shower caps. out to preserve their hairstyle, ac- Please see HAIR page D2
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, December 23, 2015 THE WALL STREET JOURNAL.

HOME & DIGITAL

WATCH
that they work on the home net-
work, while many teens carry
phones that run on 4G networks as
well. They can Snapchat the night
Continued from the prior page away if they just turn off Wi-Fi.
and other activities from its mar- Both startups are working on
keting partner, Disney. (You also fee-based “to-go” extensions,
can block Disney, of course.) scheduled to arrive in the coming
Additionally, Circle’s monitor- months. The parental app doesn’t
ing happens locally, so the only change—same monitoring, same
time your traffic data leaves your control—but the data would in-
home network is when it’s sent, clude what’s happening while your
encrypted, to your phone when children, and their smartphones,
you’re away from the house. Circle were away from home.
says it doesn't store any of your “You can limit children, and I
traffic data in its servers. Devices from Circle, left, and KoalaSafe, recommend limits, but we really
KoalaSafe relies on cloud serv- below left, let you regulate Internet activity have to teach them how to live in
EMILY PRAPUOLENIS/THE WALL STREET JOURNAL (3); KOALASAFE (LOWER LEFT)

ers for monitoring and control. on any device in your home network. Circle this world,” Ms. Klein says.
Steve Pack, KoalaSafe’s founder, alerts children when they encounter a Ninety-five percent of U.S. par-
says that the company uses anony- blocked website, above. It also lets parents ents with teens ages 13 to 17 say
mous versions of the data to show filter automatically by age group, below. they’ve talked to their teen about
how Internet use in your house- sharing appropriate content on-
hold compares with others in your line, and 93% have discussed how
state, country or even the rest of to treat others online, according to
the world. a forthcoming report from the Pew
The company will offer the abil- Research Center. Over a third of
ity to opt out of data collection. those parents say they talk to their
But if you do, you’ll lose the ability child about these issues “fre-
to filter specific content; you’ll quently.”
just be able to set basic Internet Parents of the younger teens in
time limits. this age group are more vigilant,
You can peer in on what your says Lee Rainie, Pew’s director of
children are up to from your own Internet, science and technology
app. Both Circle and KoalaSafe research, but generally speaking,
generate real-time reports based “it’s a pretty urgent conversation
on what’s happening. They can in lots of families.”
show you, by categories, all of the My children are nearing the age
studying and goofing off that’s go- where they can appreciate the con-
ing on, and even which website at- them,” says Tovah Klein, director mate” sites that her sons needed Circle’s founder, Jelani Memory, versation, but probably a little
tempts they blocked entirely. of Barnard College’s Center for for schoolwork. says there are grown-ups who use young to need the controls offered
Because there’s no software on Toddler Development, author of Circle and KoalaSafe are smarter Circle to monitor their own behav- by Circle and KoalaSafe. Soon, the
the children’s devices, you can’t “How Toddlers Thrive” and a than that. For one, they give par- ior. time will come when I know I’ll
control everything they do. For in- mother of three boys, ages 11 to ents more control over unblocking You could cut back on weekly need more insight and assistance.
stance, games and other apps that 18. “What we really want to do is wrongly restricted sites when away Facebook time by seeing just how Tools like this may come in
don’t constantly ping the Internet help them learn how to search the from home. But there are still lim- much you spent on the social net- very handy—and I expect to see
will continue to work, and won’t Internet, for school or for fun, and its to what these can achieve. work. And since potentially mali- them built into more home routers
show up in tracking reports. not somehow end up where they While I can easily lock down cious sites are blocked by default, soon.
A good argument for a tool like shouldn’t be, or don’t want to be.” my children’s iPad, iPod Touch and there’s a bit of added security that But so will the conversations
this is that it keeps children not Ms. Klein didn’t know about Amazon Fire tablet, my 5-year-old comes with the system. (Mr. Pack that, hopefully, will grow less diffi-
from juicy stuff they’re sneaking these new products, but had mixed uses my wife’s computer for says there’s no major reason to cult as they grow more frequent.
around looking for, but potentially results in the past using older pa- games, and my 7-year-old uses it connect any adult’s device to the
traumatizing content that they ac- rental-control software. Nasty sites to search for images to print. I KoalaSafe network.) Write to Wilson Rothman at
cidentally stumble into. could still sneak through, and of- don’t have any parental tracking The biggest hole in the design Wilson.Rothman@wsj.com or on
“Kids trip over sites that scare ten it would block “perfectly legiti- on her machine at all. of both Circle and KoalaSafe is Twitter @wjrothman.

HAIR
The effect is “cool-girl hair,” says Jennifer DiSomma, assistant
says Carrington Cole, vice presi- vice president of product develop-
dent of marketing at L’Oréal’s ment for haircare and style. “If
Pureology. “It’s not dirty hair, but they can cut their time in half,
Continued from the prior page it’s not squeaky-fluffy.” Pureology’s they will.”
FROM LEFT: TRESEMMÉ; PUREOLOGY; L’OREAL PROFESSIONNEL

the same period five years ago. new low-lather Cleansing Condi- Turbie Twist, a Butler, Pa.-
Unilever’s haircare brands in- tions seek to mimic the day-after- based maker of hair turbans and
clude Suave, Tresemmé and Dove, a-blowout look. shower caps, says sales have risen
all of which have launched dry Frequency of hair washing de- as more women are looking to pro-
shampoos. Rob Candelino, vice pends on everything from activity tect their hairstyles.
president of the hair business at level to texture of the hair, says “It’s not that women are bath-
Unilever, says the growth of dry Lauren Ploch, an Augusta, Ga., der- ing less,” says President Christina
shampoos has been “astronomi- matologist. Straight hair looks oily Cummings. “They want to protect
cal.” Consumers like that dry faster than curly hair, she says. A their hair so they don’t have to get
shampoos both “eliminate the look good rule of thumb is to wash the it wet.” Sales of shower caps and
that hair isn’t washed” and help scalp once or twice a week, she headbands have increased 51% this
hold styles that are “beachy, loose says, perhaps more if someone ex- year. Boxes of shower caps say
and wavy,” Mr. Candelino says. ercises a lot. She advises focusing they are “a blowout girl’s best
Consumer research shows a on the scalp when shampooing, friend.” Packaging for a microfiber
marked decline in both purchasing and letting the shampoo rinse head band says “wash your face
frequency and the number of through the hair. Unlike some without washing your hair!”
households that bought regular women believe, hair doesn’t build Hair products now promise to extend a style or blow-dry for days. From left: Such products have helped Lau-
shampoo and conditioner in the up resistance to oiliness by less Tresemmé 7 Day Smooth System shampoo and conditioner; Pureology ren Scheiber get her hair washing
last five years, says James Russo, frequent washing, says Dr. Ploch. Cleansing Conditions; a TecniArt styler offers up to 72 hours of frizz control. down to twice a week. She wears a
senior vice president of global “I think it’s more that we get used cloth hair turban in the shower in
consumer insights at Nielsen. to it” looking that way. Still, she brand’s global artistic director. purposely slick, loaded with the morning or after a workout.
Shampoo and conditioner sales says “we don’t need to wash our Day one is the classic blowout: Kérastase Elixir Ultime Oil. Worn The 34-year old account manager
reached $4.5 billion in the year hair every day.” freshly washed hair that might be tied back with classic red lipstick at a Pittsburgh advertising agency
ended Nov. 21. In that same pe- Kérastase, a L’Oréal brand that set with curlers. Day two is half- “it looks so intentional,” she says. says her big hair wash takes place
riod, about 73% of households makes shampoos that cost can up, half down, where a portion of L’Oréal Paris—the L’Oréal brand on Sunday and involves a 30-
bought shampoo and conditioner, cost over $40 for 8.5 ounces, is the hair might be clipped up. Third sold in supermarkets and drug- to-40-minute blow-dry with a
down from 77% four years earlier. working on a marketing campaign day is a messy chignon. Day four stores—introduced a Blow Dry It round brush, which gets repeated
Sales of dry shampoo are up 32% to help hairstylists explain how is a braid that now takes advan- primer spray earlier this year that again either on Wednesday or
in the last year. Mr. Russo says customers can go five days with- tage of hair’s grittier texture. The promises to make a blow-dry Thursday. Days in between she ro-
consumers may be spending more out shampooing by changing their fifth day is a treatment bun, which faster with emollient and silicone tates between braids and chignons
on products like style extenders. hairstyles, says Nina Dimachki, the means the hair is made to look that wicks water from hair fibers, and sprays on dry shampoo.

SANTA
big block writing and signed
by Santa, said he tried all
© 2015 Dow Jones & Co., Inc. All rights reserved. 2DJ2907

week to make the hover-

board, but couldn’t seem to
Continued from the prior page perfect it. Santa asked if
P DCASTS told her mom how she found there was something else the
out. Amy will miss her rou- boy would like and made two
tines. One of her favorite suggestions.
things used to be lying in Ms. Manning, who lives in
bed on Christmas Eve and a Pittsburgh suburb, doesn’t
imagining Santa mind the effort for her son
TURNING landing on her and her daughter, who is 6
POINTS roof, shrinking years old. Santa represents
in size, para- goodness and kindness, she
chuting down says, and being that person
the chimney, and seeing the for her children helps keep
cocoa, cookies and note that the focus on what Christmas
NOWELL FAMILY

she left him. “I was thinking, is all about. “When I don’t

‘How could I stop believing have any believers, it will be
but still have the magic?’” sad,” she says.
she says. Ms. Jorgensen, the
Her solution: She will Julie Nowell and daughter, Amy, 11, are trying new traditions this mother of the 12-year-old,
stay up late and help her Christmas because Amy isn’t waiting up to listen for Santa. says her own parents left

SOUND IDEAS parents stuff stockings for

her younger siblings, who
are 9 and 6. Then she will
drink the cocoa and eat the
who has been playing the
role for 45 years at schools
and holiday celebrations in
a new perch in the house. At
the beginning of the holiday
season, Ms. Manning’s 10-
cookies and milk out for
Santa until she was in col-
lege. “It was cute and sweet
and nostalgic,” says Ms. Jor-
cookies. his community, asks what year-old asked if she was the gensen, who lives in Tampa,
Introducing WSJ Podcasts Her mother, Julie, felt they think. “Ninety-eight one who moved the Elf on works for a social-media
bad about her daughter percent say they think I’m the Shelf each night. “The company and founded a par-
reading the blog post. “I real,” he says. His identity Elf is Magic. Magic moves enting blog.
Drive time, gym time, anytime. With award-winning WSJ screwed things up,” she says. has been a well-kept local the Elf,” she told him. She doesn’t think she will
journalists discussing everything from business and tech to
She’s proud that her daugh- secret that he wants to keep. be sad when her boys stop
politics and world news to sports, arts and culture, WSJ Podcasts
ter took the discovery in The other 2% say they aren’t believing. “I’m ok with it,”
keep you connected.
stride but knows she has sure. “Well if you don’t
One mom thought of she says. She suspects her
crossed a threshold. The know, that must mean I am her own aging when oldest son already knows.
Listen now at WSJ.com/podcasts Santa realization is “another real,” he says, which seems “He’s probably playing along
reminder that she is not a to satisfy them.
her daughter had a so I’m not hurt.”
kid anymore,” says Ms. Now- It is more work to keep Santa realization. But this year, and maybe
ell. Her daughter is growing belief alive. Every night dur- for years to come, she plans
up beautifully, Ms. Nowell ing the season, Nickie Man- to leave cookies for Santa
says, but it means she her- ning hides the Elf on the When her son asked and carrots for the reindeer,
Now on iTunes and Stitcher. Part of the Panoply Network.
self is getting older. “There’s Shelf, a best-selling doll that Santa for a $500 hover- and wrap Santa gifts in spe-
a little bit of mortality comes with a book explain- board—the only thing on his cial paper. “These are the
there,” she says. ing how he is supposed to list—she wrote a letter from years to create childhood
One Pittsburgh-area Santa fly to the North Pole every Santa on red cardstock and a memories,” she says. “Before
says many children have night, report nice and green marker that she keeps long, we will be on our own
asked whether he is real. naughty behavior to Santa tucked away in her base- for Christmas and we won’t
The grandfather of three, and return each morning to ment. The letter, written in have to scramble this way.”
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.
Raise a Glass, Give a Speech, Without a Stumble
BY SUE SHELLENBARGER
Along with gifts, feasts and fes-
tivities at the holidays comes a
more challenging tradition: invita-
tions to give speeches or toasts.
The biggest worry, for most
people, is committing an embar-
rassing faux pas, such
WORK & as forgetting what
FAMILY they want to say, tell-
ing jokes that fall flat
or succumbing to a
stress-induced panic attack.
Kimberly K. Parker spent days
practicing the inspirational speech
she planned to give one evening
last month before 120 attendees at
a women’s conference. But she was
tired when she stepped on stage
after a day on her job as a teacher,
and she “drew a complete blank”
when she tried to begin, says Ms.
Parker, a Clinton, Md., author of
parenting and inspirational books.
She admitted her faux pas; the
audience was empathetic. Shaking
off her embarrassment, she fo-
cused on the warm, smiling face of
one listener, picked up her notes
and went on, drawing applause.
Many people—more than 1 in 4,
according to a survey of 1,541
adults by Chapman University, Or-
ange, Calif.—regard public speak-
ing as a fearsome ordeal. Stress
and anxiety can hijack the brain,
sapping working-memory capacity
and reducing fluid intelligence—
the ability to reason quickly and
solve problems, according to re-
search led by Sian Beilock, an au-
thor and a professor in the psy-
chology department at the
University of Chicago.
Jenna Isabel Rose was so ner-
vous before a speech she was giv-
ing on workplace stress that she
forgot to set the parking brake on
her car. When an announcement
about a car rolling downhill in the
parking lot was broadcast in the
room, she interrupted her speech,
ran outside, jumped in her car, re-
parked it and set the brake, says
Ms. Rose, an author and maker of
custom artwork in Colorado
Springs, Colo. She apologized and
resumed her presentation, joking,
“There’s a great example of stress
in the workplace.”
Fear of speaking can become
all-consuming unless speakers
shift their mental focus away from
themselves and onto what listen-
ers need and want to hear, says
What’s Selling Where Bundt Cakes
Bundt cakes, named for the round, hole-in-the-center Bundt pans they are baked in, have been an
American staple dessert at potluck dinners for over 50 years. About 20 years ago, Dena Tripp brought
her favorite chocolate Bundt cake to her friend Debbie Shwetz’s home. Ms. Shwetz wanted to try it
with her favorite frosting, and the idea for Nothing Bundt Cakes Enterprises began. “I have this great
cream cheese and butter frosting recipe, and she had this great cake one,” says Ms. Shwetz, who co-
founded the Las Vegas-based company in 1997 with Ms. Tripp.
DALLAS
Red Velvet
Bakers sprinkle in semisweet chocolate
chips, which make for a surprise when
the cake is sliced, Ms. Shwetz says.
The chips help balance the milk
chocolate that is also in the batter, she
says. The flavor is especially popular at
events held in Dallas. “It makes an
elegant centerpiece and doubles as a
dessert,” says Ms. Shwetz. “Red velvet
can be so dramatic.”
Public-Speaking Faux Pas
And How To Fix Them
Problem Brain freeze: You completely forget what you
planned to say.
Solution Camouflage your confusion by pausing to take
a deep breath or a sip of water while you recall main
points.
Problem Your joke falls flat.
Solution Don't dwell on it, move on and apologize to the
host or hostess afterward. If people are so offended that
the room falls silent, apologize quickly and sincerely.
Problem You lose your notes.
Solution Try to recall your beginning, ending and main
points in between, then forge ahead.
Problem You begin trembling and perspiring heavily on
stage.
Solution Pause, take a few deep breaths, move around
the stage and re-focus on what your audience needs to
hear, rather than yourself.
Problem You notice a wardrobe malfunction on stage
(mismatched shoes, zipper down).
Solution Fix it quickly. If the audience has noticed, use
humor to weave the misstep into your talk.
Gary Genard, president of a Bel-
mont, Mass., speech-coaching and
training firm.
Lisa Taub froze when her boss
asked her to give an impromptu
toast to a departing colleague sev-
eral years ago. Her stomach knot-
ted, and, she says, “my mind was
racing, wondering, ‘What can I say
about her?’ ” She deflected the
spotlight by inviting the 15 other
attendees to turn toward the guest
of honor and raise their glasses,
says Ms. Taub, a Brooklyn, N.Y., ex-
ecutive assistant at a financial-ser-
vices firm. That bought her a mo-
ment to take a few deep breaths
and recall some memories of her
co-worker, so she could speak.
It’s wise to plan ahead when
you think you might be asked to
speak. Jim Decker was so fearful
when asked to speak at his grand-
father’s funeral years ago that he
refused, and he later felt sad about
missing the opportunity, says Mr.
Decker, owner of See Merchandis-
ing, a New York provider of mer-
chandise for shows and events.
He got coaching and practice by
joining Toastmasters International,
a nonprofit group that helps mem-
CHICAGO
Chocolate
Chocolate
Chip
This chocolate cake is also especially
moist, the company says. “Chicago is a
chocolate town,” says Ms. Shwetz.
“Finding a homemade-quality cake is
important to them so they can
continue that tradition of chocolate.”
HOME & DIGITAL
bers with speaking and leadership
skills. He also began talking with
relatives and gathering family sto-
ries. When his grandmother died
recently, Mr. Decker delivered a
four-minute remembrance.
Work & Family Mailbox
Q: I saw your recent column on
exiting conversations grace-
fully at holiday parties. I expect more
than 70 guests at my small business’s
holiday party for clients and other
contacts. My four staff members
aren’t comfortable in social situations
and aren’t likely to help much. How
can I make everyone feel welcome?
—K.C.
A: This is an opportunity for your
staff members to learn new
skills. Brief them on how to welcome
and chat with guests. Helpful books in-
clude “The Fine Art of Small Talk” by
Debra Fine and “The Networking Sur-
vival Guide” by Diane Darling.
Assign each employee a role to
help guide their behavior, says Jodi R.R.
Smith, author of two books entitled
“From Clueless to Class Act,” one for
The Nothing Bundt Cakes franchise chain sells its namesake treat in 147 locations in 28 states.
Batter is mixed in small batches and baked on-site. Bakers swirl in ingredients like raspberry filling or
chocolate chips. White frosting, based on Ms. Shwetz’s recipe, is piped or drizzled over each cake,
depending on the buyer’s preference. Sizes range from individual “Bundtinis” to tiered Bundts that feed
30. The cakes are available in nine permanent flavors and a rotating one, currently gingerbread. Below,
top-selling flavors by city: —Ellen Byron
NASHVILLE
Pecan Praline Lemon
This buttery yellow cake is one of the
company’s most complex to make.
After pecans are chopped, they are
mixed with butter, sugar and cinnamon
to create a nougat swirl in the cake. “It
certainly works as a cake for any
occasion, but when it’s drizzled with
frosting it’s a lovely breakfast,” says
Ms. Shwetz. “Pecans are a Southern
nut and I think that explains a lot.”
Wednesday, December 23, 2015 | D3
CORBIS
Many people think memorizing
their speeches will ensure success,
but “it’s a terrible idea,” says Dr.
Genard, author of “Fearless Speak-
ing.” Reciting a speech from mem-
ory gives it a canned quality and
men and one for women. One can
serve as a greeter, welcoming guests
warmly at the door, collecting coats, of-
fering a drink and directing them to
the bar or buffet, says Ms. Smith,
owner of Mannersmith Etiquette Con-
sulting in Marblehead, Mass.
Another employee could serve as a
“meeter,” approaching any guest stand-
ing alone with a smile and some small
talk, and introducing him or her to oth-
ers, Ms. Smith says. Another staff
member could serve as your handler,
helping extricate you from any conver-
sations that go on too long by joining
you and starting a new conversation,
allowing you to excuse yourself. As the
party winds down, stand by the door,
shaking hands or hugging each guest
as they leave, Ms. Smith says.
Email sue.shellenbarger@wsj.com.
ORLANDO
When developing this cake, Ms.
Shwetz says the company found a real
lemon flavoring that leaves no acidic
aftertaste. Floridians are accustomed
to fresh lemons. “Lemon connoisseurs
know real lemon when they taste it,”
she says.
distances a speaker from listeners.
Also, a speaker who forgets one
section might lose track of what
follows, “and suddenly you’re at
sea,” he says. A better approach is
to plan a beginning and ending,
then hold in mind the main points
to make in between, says Gary
Schmidt, Oregon City, Ore., past
president and spokesman for
Toastmasters International.
Opening with a joke is hazard-
ous. A canned joke that has noth-
ing to do with your speech or the
event makes it hard to transition
from the punchline to your topic,
Dr. Genard says. It’s worse if the
audience takes offense or doesn’t
get it. “If you’re not a particularly
funny person, 9 times out of 10 it
doesn’t go over well,” says Vicki
Donlan, a Hingham, Mass., busi-
ness coach and author.
One’s own gaffes are a better
route to humor. Ms. Donlan no-
ticed as she took the stage for a
speech to female entrepreneurs
that she was wearing one black
shoe and one blue shoe. She took
them off, put them on the podium
and said, “Every one of us is work-
ing hard to balance it all. Some-
times we get it right, but we still
don’t manage to put on a matching
pair of shoes,” Ms. Donlan says.
To ward off stage fright, arrive
early, allowing one or two hours to
detect and fix problems with audio
or video gear or lost notes. Take a
minute before speaking to check
your appearance in a mirror and
make sure your clothing is zipped
and clean. Dr. Genard once spoke
to a college class with a piece of
paper towel stuck to his forehead,
he says. He had been mopping his
brow earlier and didn’t realize
part of the towel had stuck.
Take a quiet moment to think
about your stress in a positive
way. People who say, “I am ex-
cited” before making a two-minute
speech are more likely to be rated
by listeners as persuasive, confi-
dent and competent, compared to
people who say, “I am calm,” says
a 2014 Harvard Business School
study of 140 people.
Keep focusing on the audience.
Lois Creamer of St. Louis, a con-
sultant to professional speakers,
asks in advance about listeners’
needs, interests and sensitivities.
Before speaking, she spends a mo-
ment thinking, “Let this be the in-
formation that these people need.”
NOTHING BUNDT CAKES (5)
LOS ANGELES
White
Chocolate
Raspberry
White chocolate is added to the batter,
and then a raspberry purée is swirled
by hand throughout the cake. “It’s
pretty when its cut,” Ms. Shwetz says.
“I think L.A.’s fancy people kind of like
that.”
D4 | Wednesday, December 23, 2015 THE WALL STREET JOURNAL.

CARS

Now That’s Italian: A Professor’s Love of Alfa Romeo

John D. Fox, 60, a senior scien-
tist at Stanford’s SLAC National
Accelerator Laboratory from Menlo
Park, Calif., on his Alfa Romeo Spi-
der, as told to A.J. Baime.
I teach applied physics at Stan-
ford, and some of my courses are
hands-on lab classes. I
MY RIDE like to bring in pieces
of cars. For example,
when we talk about
feedback theory, I’ll bring in an ox-
ygen sensor and a diagram of a
fuel injection system. Or we’ll talk
about cruise control, or anti-lock
brakes. These technologies are
used everyday. But unless you
show people, they’ll never know
how they work.
I first fell in love with cars in
high school, and I desperately
wanted an Alfa Romeo. I tried to
convince my dad to loan me the
money to buy one. He told me:
“John, you’re exactly the kind of
guy who’d love a twin-cam Italian
sports car, but I think you’ll appre-
ciate it more when you buy it with
your own money.” So when I got
older, I bought all the cars I
wanted when I was in high school.
Now I have two Alfa Romeos, a
Fiat coupe and two Saabs.
When I look at a car, I don’t just
see a vehicle, but a set of values of
the people who dreamed it up. The
car pictured here is a 1972 Alfa Ro-
meo Spider. I love the styling, but John D. Fox, 60, a consulting
it’s really a car all about driving. professor of applied physics at
Every aspect of the design is about Stanford and a senior scientist at the
performance. There was no focus SLAC National Accelerator Laboratory,
group to decide where to put a with his 1972 Alfa Romeo Spider, on

WINNI WINTERMEYER FOR THE WALL STREET JOURNAL (3)

ketchup holder, no gimmicks or the campus at Stanford. Dr. Fox, who
fake wood grain. grew up ‘drooling’ over Italian
Italian cars in the early 1970s vehicles, has five cars (two Alfas, a
got a reputation for poor quality, Fiat, and two Saabs). To get to work,
but it’s not warranted. These cars however, he rides a bicycle.
were very sophisticated for their
time, and they required knowledge tors, big machines that collide
and competence from the people matter and antimatter to create
servicing them. This competence new particles. Working on my cars
was not commonly found at a cor- is a great side hobby. Sometimes
ner gas station. It wasn’t that the I’ll look at a car and think: Wow,
cars were pieces of junk. People this is just phenomenal.
just didn’t know how to take care
of them. Contact A.J. Baime at Face-
I work with particle accelera- book.com/ajbaime.

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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.
THEATER
JOAN MARCUS
Danny Burstein as Tevye in Bartlett Sher’s ‘Fiddler on the Roof.’
Our Shtetl
Fiddler on the Roof
Broadway Theatre,
1681 Broadway ($35-$167),
212-239-6200/800-432-7250
BY TERRY TEACHOUT
H
New York
ow often should a clas-
sic musical be revived
on Broadway? In the
case of “Fiddler on the Roof,”
which has just opened there
for the sixth time since 1964,
it’s hard not to wonder
whether a point of diminishing
returns might possibly be
drawing nigh. “Fiddler” is a
marvelous show, but the last
revival, directed by David Le-
veaux and starring Alfred Mo-
lina, dates from 2004, and it
was a fine one, both fresh and
faithful. Granted, Bartlett
Sher’s new version sports an
even more impressive star turn
by Danny Burstein, plus new
dances by Hofesh Shechter, an
Israeli-born modern-dance
choreographer. All interesting,
all promising—but do we re-
ally need another “Fiddler”?
Now that I’ve seen this one,
my answer is…maybe.
Mr. Sher, as always, has
found his own way into “Fid-
dler,” taking a tack that owes
nothing to Jerome Robbins’s
original 1964 staging or any
other version of which I’m
aware, and I was sure for the
first 15 minutes or so that I’d
be writing a review as enthusi-
astic as the one I wrote of his
letter-perfect Lincoln Center
Theater revival of “The King
and I.” But no: This produc-
tion, intelligent and imagina-
tive though it is, falls short of
the mark, and the reasons why
it does so say something re-
vealing about the appeal of the
show itself.
We first see Mr. Burstein in
modern dress on an empty
stage, reading a book as he
waits for a train. Then a shad-
owy house with a fiddler
perched precariously on the
roof is slowly lifted into view.
Mr. Burstein shifts as if by
magic into Orthodox Jewish
garb and the stage fills with
villagers. As the fiddler and
the roof fly into the rafters and
the cast strikes up “Tradition,”
we see (or think we see) the
bare brick walls of the stage it-
self. And as everyone starts
speaking in accents indistin-
guishable from those you
might hear on a present-day
New York streetcorner, you get
it: This is an “Our Town”-like
“Fiddler on the Roof.” It’s also
the most American-sounding
“Fiddler” I’ve ever seen, and
that’s the point: It is as if we
are watching the Americanized
descendants of the Jews of An-
atevka retell the tales their
great-grandparents told about
shtetl life in 19th-century Rus-
sia.
This directorial twist goes a
long way toward neutralizing
the underlying flaw of “Fid-
dler,” which is that it takes a
sentimentally optimistic view
Pepper ...
And Salt
THE WALL STREET JOURNAL
“A ‘pregnant pause’ is effec-
tive only if you already said
something.”
ARTS IN REVIEW
of the tragic dilemma of assim-
ilation, one that is antithetical
to the biting honesty of the
short stories by Sholem Ale-
ichem on which “Fiddler” is
based. And Mr. Burstein is just
the man to embody it: His Te-
vye is at once unmistakably
contemporary, unequivocally
Jewish and acted with total
conviction. This is one of the
best things he’s done, as good
as his powerhouse perfor-
mance in the 2011 revival of
“Follies” and all the more in-
volving because it bears no re-
semblance at all to Zero Mos-
tel’s gloriously exaggerated
Tevye. Just as impressive are
Mr. Shechter’s dances, which
are “inspired by” Robbins (the
famous first-act “bottle dance”
has been left intact) but have a
folk-like brawn and thrust that
is entirely persuasive in its
own right.
But as the evening pro-
gressed, I realized, very much
to my surprise, that I wasn’t
feeling the intense emotions
that by all rights ought to be
stirred up by “Fiddler.” It is,
after all, a musical about
deadly serious matters, start-
ing with the bloody pogrom
that breaks up the wedding of
A classic musical gets
new dances while
dialing down emotion.
Tevye’s daughter and ending
with the forced emigration of
every Jew in Anatevka. Such
things ought to make us
weep—and in this production,
they don’t.
Why not? Partly because
Michael Yeargan’s one-dimen-
sional sets and Donald Holder’s
grayish lighting are deliber-
ately flat and unatmospheric.
Partly because the cast, Mr.
Burstein excepted, is compe-
tent but unmemorable: Nobody
stands out, and Jessica Hecht
is an impossible Golde, genteel
instead of vinegary. Partly be-
cause several of the songs have
been transposed into lower
keys, presumably to accommo-
date the voices of Mr. Burstein
and Ms. Hecht, which causes
the singing to lose dramatic al-
titude and become inappropri-
ately comfortable-sounding.
Partly because the pit orches-
tra is bass-shy and a trifle too
small (though Andrew Sterman
plays the klezmer-style clari-
net solos so pungently, as he
did in the 2004 revival, that he
deserves a solo bow).
But mostly, I think, because
Mr. Sher has throttled back the
feelings too far. One feels dis-
tant from his “Fiddler,” neatly
framed as it is by the vaulting
proscenium arch of the 1,761-
seat Broadway Theatre, which
is too big for the show. I think
I understand his purpose—he
doesn’t want to jerk tears—
and I esteem him for it, just as
I appreciate his desire not to
give us the mixture as before.
We certainly don’t need a mu-
seum-piece exhumation of
Robbins’s staging. But that in-
comparably great production,
with its Chagall-inspired sets
by Boris Aronson, had a solid-
ity and richness of detail that
spoke eloquently (if in an ide-
alized way) of the ghetto life
that it portrayed. Anyone who
saw it is likely to feel that Mr.
Sher’s version, for all its obvi-
ous and admirable virtues,
comes off feeling lightweight
by contrast.
Mr. Teachout is the Jour-
nal’s drama critic. “Satchmo at
the Waldorf,” his first play,
will be produced in January by
Chicago’s Court Theatre, Sea-
coast Repertory Theatre of
Portsmouth, N.H., and San
Francisco’s American Conser-
vatory Theater. Write to him at
tteachout@wsj.com.
A Collection Gets a Tune Up
BY MARK YOST
O
Los Angeles
ne of the consistent—
and accurate—knocks
against the Petersen
Automotive Museum had been
accessibility. Like many muse-
ums, it was able to show only
a sliver of its 300-car collec-
tion at any one time. And un-
less you knew someone there,
you didn’t stand a chance of
getting into the underground
garage to see the rest of the
impressive collection of Brit-
ish roadsters, French touring
cars and American classics.
Space is still an issue, but
DAVID ZAITZ
thanks to a 14-month, $90
million facelift, the cars that
are on display in 95,000
square feet of gallery space
are better organized. A rein-
vigorated board of directors
has also vowed to rotate the
in-house stock more often,
and created a $35 million en-
dowment to fund special ex-
hibits and maintain the collec-
tion.
“I was shocked to learn that
70% of visitors were first-time
visitors,” said director Peter
Mullin, the billionaire art-deco
connoisseur whose Mullin Au-
tomotive Museum, opened in
Oxnard, Calif., in 2010, had
displaced the Petersen as the
premier car museum in the
state. “That meant people
weren’t coming back. We
needed to fix that.”
With the help of lead de-
signers Kohn Pedersen Fox As-
sociates, the roughly 130 cars
on display are spread over
three floors with central
themes of Artistry, Industry
and History. Mr. Mullin, who
gets most of the credit for the
project and sees the Petersen
as a complement rather than a
competitor to his own mu-
seum, clearly had a hand in
the first-floor Artistry gallery.
Many of the cars on display at
the public opening earlier this
month were his beloved 1920s
and ’30s Voisins and Bugattis,
cars that, as one panel ex-
plains, symbolize the period
when “motorcar design shifted
from the mechanical and ar-
chitectural to the sculptural
and organic.”
Meeting With Musical Friends
BY JIM FUSILLI
T
New York
hree years ago this
month, Ellis Ludwig-Le-
one performed at Pia-
nos, a club on the Lower East
Side with a capacity of about
150. Mr. Ludwig-Leone, who
graduated from Yale with a
degree in composition, was
accompanied by 15 musicians,
all of whom were reading
their parts from sheet music.
Some recording industry ex-
ecutives were in attendance.
It didn’t go as well as ex-
pected. “It was super over the
top,” said Mr. Ludwig-Leone,
with a self-deprecating laugh,
during a phone call while he
was on route to a gig in Carr-
boro, N.C., with his chamber-
pop band San Fermin. But the
day after the performance, he
was offered a record deal.
On Saturday, the 26-year-
old Mr. Ludwig-Leone and San
DENNY RENSHAW
Fermin were back here for a
show at the Bowery Ballroom
in the band’s final perfor-
mance of 2015. The concert
was part of San Fermin’s cur-
rent tour promoting its latest
album, “Jackrabbit” (Down-
town), and it had promised to
be special. In addition to San
Fermin, now an octet, the
show would feature many
guests, including Casey Dienel
and Aaron Livingston, known
professionally as White Hin-
terland and Son Little, respec-
tively. Perhaps wary of an-
other “super over the top”
concert, Mr. Ludwig-Leone
said the band would arrive
early at the venue to rehearse
with its musical friends. From
the outset of the show, it was
apparent that those rehears-
als went very well.
San Fermin’s 2013 self-ti-
tled debut album is a dialogue
and muted disagreement be-
tween characters played by
singers Allen Tate and, sing-
ing in unison, Holly Laessig
and Jess Wolfe, the vocalists
from the band Lucius. Mr.
MUSEUMS
1936 Bugatti Type 57SC Atlantic on display at the recently reopened Petersen.
Other magnificent, non-
Mullin cars include the 1938
Graham Model 97 Cabriolet,
whose body was designed by
famed French coachbuilder
Jacques Saoutchik, and a 1938
Mercedes-Benz 540K Auto-
bahnkurier, which the plaque
says was named after “the
new highways in and around
The Petersen
Automotive Museum
can now display more
of its holdings than
ever before.
Berlin.” It doesn’t take much
to imagine German industrial-
ists, who were getting rich off
the burgeoning Nazi war ma-
chine, admiring its pontoon
fenders, fastback profile and
signature Mercedes grill.
The Industry displays on
the second floor are a nod to
both past and present. The
past features such legendary
auto makers at Ferdinand
“Ferry” Porsche, who fa-
mously said, “I couldn’t find
the sports car of my dreams,
so I built it myself,” and Henry
Ford, whose pull quote is
“Mass production is crafts-
manship with the drudgery
taken out of it.”
Representing the future are
MUSIC
Ellis Ludwig-Leone leads the chamber-pop band San Fermin.
Ludwig-Leone said the device
allowed him to express his of-
ten-conflicted emotions. That
recording thrust him into the
world of touring, upsetting
his plan for a life as a solitary
composer. Yet there was an
upside: “Unexpectedly,” he
said, “the most rewarding
thing was that the songs were
performed so well and with
such personality.”
“Jackrabbit,” released in
April, was written while Mr.
Ludwig-Leone and San Fermin
were on the road, and new,
raucous colors crept into his
elegant chamber pop: a coun-
try fiddle and a screaming
guitar, for example. In “Ec-
static Thoughts,” the strings
play with the jitteriness of
contemporary electronic
dance music. Sung by Char-
lene Kaye, who succeeded the
now-departed Lucius vocal-
Wednesday, December 23, 2015 | D5
actual studios for the Art Cen-
ter College of Design, where
visitors can watch many of to-
day’s leading car designers at
work. The Pixar “Cars” Me-
chanical Institute uses anima-
tion to show children how cars
really function, part of the
museum’s efforts to bring in
younger visitors.
There are also historic mo-
tors, transmissions, and a
small gallery devoted to alter-
native power that reminds vis-
itors that car makers were ex-
perimenting with steam and
gas-electric hybrids in the
early 20th century, but gas-
powered vehicles won out be-
cause of petroleum’s low cost
and efficiency. In terms of
cars, the new Ford GT that
will debut at Le Mans in 2017
sits alongside the 1967 Ford
GT40 Mark III, both illustrat-
ing how racing drives innova-
tion.
The temporary gallery now
features “Precious Metal,” a
collection of world-famous sil-
ver cars, including the 1954
Mercedes W196, considered
the most advanced race car of
its day. A plaque explains that
legendary drivers Juan-Ma-
nuel Fangio and Stirling Moss
won 9 of 12 races in 1954-55.
Other silver-clad beauties on
display include a 1937 Horche
853 Sport Cabriolet, alongside
a 1957 Ferrari 625/250 Testa
Rossa with Scaglietti coach-
ists, “Philosopher” and the ti-
tle track pound on the power
of Michael Hanf’s drums, and
“Parasites” features a bur-
bling bottom of brass, electric
bass and synthesizer that is
companion to Mr. Tate’s bari-
tone voice.
There’s a strain of melan-
choly, if not outright discon-
tent, in San Fermin’s music
that suggests it might not be
an ideal soundtrack for a
gleeful celebration. Yet at the
Bowery Ballroom on Saturday
night, a festive atmosphere
ruled, as the band deftly man-
aged a revolving-door concert
that could have easily wa-
vered without momentum.
Ms. Dienel sang Mr. Ludwig-
Leone’s “Philosopher” and her
own “Ring the Bell,” and Mr.
Livingston shared with Mr.
Tate the lead vocal on San
Fermin’s latest single, “No
work.
The third-floor History gal-
lery opens with a timeline that
explains that while Karl Benz’s
1886 Motorwagen was the
“first practical car,” the first
“self-propelled vehicle” was a
1769 French Cugnot with a top
speed of 2 miles per hour.
Similarly, the first automotive
use of the internal-combustion
engine was the 1875 Austrian
Marcus, top speed 6 mph.
The History galleries have
sections devoted to Style, In-
novation, Freedom, Utility and
Distinction. Innovation fea-
tures a 1948 Davis Divan, an
aluminum-bodied three-
wheeler that had passengers
sitting four across. It was built
in nearby Van Nuys and was
touted as “the car of the fu-
ture,” but only 16 were ever
made. Utility is represented by
a 1968 VW Type 2 single cab
pickup, while one of the Style
vehicles is a 1947 Salsbury
Model 85 streamlined scooter.
This being L.A., there’s also
a cars-of-the-stars section,
featuring Magnum, P.I.’s 1982
Ferrari 308 GTSi, and the 1956
Jaguar XKSS that was suppos-
edly Steve McQueen’s favorite
car.
All in all, much improved
from the old Petersen.
Mr. Yost is the former De-
troit bureau chief for the Dow
Jones Newswires.
Devil,” and the Son Little tune
“The River,” a gospel stomp.
Eliza Bagg and Oliver Hill,
members of Pavo Pavo, ex-
panded the string section for
a gorgeous reading of “Me-
thuselah” from “San Fermin,”
and the playwright Young
Jean Lee, who has a winning
voice, joined Ms. Kaye to sing
a spirited “The Count” from
the same album; the latter
performance was sent spiral-
ing, happily so, toward near-
cacophony by wild blasts
from San Fermin’s Stephen
Chen on baritone sax and
John Brandon on trumpet.
With San Fermin providing
support, three members of
Cuddle Magic sang their own
“What if I.” It, too, was a de-
light.
But San Fermin is more
than a backing band. It pros-
pers from two excellent lead
singers in Ms. Kaye and Mr.
Tate—on this night, Mr. Tate,
he of the rumbling baritone,
proved a revelation—and an
intensity it conveys with an
airiness than speaks to its vir-
tuosity. It shifted with ease
from the spooky chamber folk
of “Astronaut” to the muscu-
lar, surging “Bar.” Throughout
the show, Mr. Ludwig-Leone
stood at stage left behind his
keyboards, emerging only to
pound a drum now and then
or introduce a guest. He
seemed awfully pleased by
the events, increasingly so as
the night unfolded. As well he
should have been: Leading an
exceptional band, Mr. Ludwig-
Leone brought a burst of life
to San Fermin’s rich catalog,
sharing his distinctive songs
with musical friends and an
enchanted audience.
The tour resumes in Ann
Arbor, Mich., on Jan. 12.
Mr. Fusilli is the Journal’s
rock and pop music critic, and
the author of “Catching Up:
Connecting With Great 21st
Century Music” (Bliss Publish-
ing).
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, December 23, 2015
Heard On
The Field
Panthers Coach Rivera:
No More Bats on Field
The Carolina Panthers, a football
team, are no longer going to bring
baseball bats on the field. If you are
confused, so were the New York Gi-
ants. The Panthers’ opponents last
Sunday took the presence of a
baseball bat on the sideline to be a
possible threat, Panthers coach Ron
Rivera said it was simply a motiva-
tional tool, one which will stop now.
The NFL, Rivera said, is “the ‘No Fun
League’ for a reason.’’ The Panthers-
Giants matchup was one of the
most heated in recent memory, with
receiver Odell Beckham Jr. earning a
one-game suspension for his con-
frontations with cornerback Josh
Norman. Beckham is now appealing.
NFL executive vice president of
football operations Troy Vincent
wrote a memo telling teams to
keep foreign objects off the field of
play. “While we realize that teams
and individual players may have
items they use for motivation or to
symbolize a theme that the team
has used this season, we ask that
you instruct your club personnel
and players to leave those items in
the locker room,” he wrote.
—Kevin Clark
— ALLEN PARK, Mich.—For 20 years,
Smoltz to Join Buck
In Fox Broadcast Booth
Hall of Fame pitcher John
Smoltz will be the lead analyst on
Fox broadcasts of Major League
Baseball next season, replacing the
tandem of Harold Reynolds and
Tom Verducci, the network an-
nounced Tuesday.
Smoltz, 48, will join longtime play-
by-play voice Joe Buck in the booth.
He has worked previously as an ana-
lyst for Fox, TBS and MLB Network.
Verducci, who writes for Sports
Illustrated, and Reynolds, a former
major-league second baseman, had
served as lead analysts since 2014,
following the retirement of Tim
McCarver.
“It is rare in this business that
you’re presented the opportunity to
have a Hall of Fame-level player
who is also one of the sport’s top
broadcasters,” said John Entz, presi-
dent for production at Fox Sports.
—Brian Costa
The Curse of Doug Flutie Haunts Buffalo
Doug Flutie led the Buffalo Bills
to a 10-5 record as a starter in the
1999 season, but then-coach Wade
Phillips made a mysterious decision.
He decided to sit Flutie for the
playoffs despite a clean bill of
health. With Rob Johnson starting,
the Bills lost 22-16 to the Tennes-
see Titans in a wild-card game
known as the “Music City Miracle.”
It was one of the most devastating
losses in NFL history, and the Bills
haven’t made the playoffs since.
With a 6-8 record under first-year
head coach Rex Ryan, Buffalo will
not be back this season. The 16-year
postseason drought is the longest
active streak in the NFL, followed by
the 13-year streaks by the Cleveland
Browns and Oakland Raiders.
So who could blame a growing
number of superstitious Bills fans
A Mystery in the Lions’ Den
How Martha Ford quietly
took over in Detroit as her
son faded from spotlight
BY SHARON TERLEP
Ford Motor Co. Executive Chairman
Bill Ford Jr. was a mainstay around
Detroit’s lowly Lions, visible at games,
present at National Football League
owners’ meetings, the leader of an
ambitious if fruitless effort to woo
legendary running back Barry Sanders
out of retirement back in the 1990s.
Even when executing a Herculean
effort to keep his car company out of
bankruptcy amid the economic col-
lapse in 2008, Ford came out publicly
for the firing of then-president Matt
Millen, who at the time had a histori-
cally bad record.
These days, the great-great-
grandson of automotive pioneer
Henry Ford is nowhere to be found
where the Lions are concerned.
At first, only the team’s more as-
tute followers noticed. Ford wasn’t
his highly visible self at the Lions’
summer training camp. Then he
stopped showing up on the sidelines.
He wasn’t at the most recent NFL
owners’ meeting. This fall, with the
Lions 0-4, he told a local radio host
that his mother, Martha Firestone
Ford, not he, “is very much in
charge,” of the team.
She inherited the Lions last year
upon the death of her husband, Wil-
liam Clay Ford Sr., who took over
the team in 1964. The sports world
expected Bill Ford Jr. to be the Li-
ons’ functional leader even if his
mother technically owned the team.
Instead, the 90-year-old matriarch
and her three daughters, led by the
second eldest, Sheila Ford Hamp,
moved into the spotlight. “Bill was
Postseason Drought
Since 1970, the most consecutive seasons missing the
playoffs and the number of different quarterbacks and
head coaches the team has had.
TEAM SEASONS SPAN
Saints 17 1970-86
Bills 16 2000-present
Cardinals 15 1983-97
Bengals
Buccaneers
14
14
1991-04
1983-96
Chiefs 14 1972-85
Browns 13 2003-present
Raiders 13 2003-present
Source: Stats LLC The Wall Street Journal.
for believing Buffalo is being haunted by
the Curse of Doug Flutie? Following
Flutie, the team has had 14 different
starting quarterbacks ranging from no-
names like Alex Van Pelt and Jeff Tuel
to failed first-round picks EJ Manuel and
J.P. Losman. And eight head coaches
have tried in vain to end the streak. The
SPORTS
there for a number of years repre-
senting the team. And all of a sud-
den, he was not there,” said New
York Giants owner John Mara. Mar-
tha Ford, “is obviously is trying to
make a statement that she is in con-
trol and that she realizes changes
have to be made.”
Outside the Ford family and its in-
ner circle, Bill Ford’s absence from
the team is a mystery and a matter of
much speculation. “Folks have talked
about it, but I don’t think anyone
knows,” Mara said. “I’m from a big
family myself, I know how it can be.”
Bill Ford Jr. was named Lions vice
chairman in 1995 by his father and
took a high-profile role with the
team. He vowed to fight, “tooth and
nail,” to safeguard the decades-old
tradition of a Lions game on Thanks-
giving Day over the objections of
some owners. And he had a central
role of moving the Lions from the
suburbs to a modern new stadium in
downtown Detroit.
The elder Ford was the team’s
chairman at the time of his death
last year. The Lions usually fared
poorly under his ownership, winning
just a single playoff game in more
than half a century. They are the
only NFL team to miss out on all 50
Super Bowls (including this season’s)
and managed to go 0-16 in 2008.
As his father’s health failed, Bill
Ford, now 58, stepped up his in-
volvement in the team. He had a role
in hiring the current coach and sat
on the NFL’s influential broadcast
committee.
He was named chairman of Ford
Motor in 1998 and served as its CEO
from 2001 to 2006, but remained ac-
tive with the Lions.
Martha Ford gave her daughters
equal billing as vice chairs of the Li-
ons last year after William Clay Ford
died. She erased any lingering ques-
QB COACHES
11 10
15 8
18 6 said it feels he
13
12
5
6
6 5
21 7
18 9 since I turned pro in
latest, Ryan, was thought to be the per-
fect choice to mold one of the game’s
best defenses from 2014, when they
finished 9-7, into a record-setting unit.
Instead, the Bills have fallen to 22nd in
yards allowed per play and 17th in
points allowed—categories in which they
finished third and fourth, respectively, a
FEATURE: DUANE BURLESON/ASSOCIATED PRESS; THE COUNT: PATRICK SMITH/GETTY IMAGES; HOF (T-B): JULIE JACOBSON/ASSOCIATED PRESS; BRETT DAVIS/ASSOCIATED PRESS
* ***
Detroit Lions owner and chairman Martha Ford, left, talks
with team vice chairman Bill Ford before a game in 2014.
tions about who was calling the
shots in November when she fired
Lions President Tom Lewand and
General Manager Martin Mayhew. To
axe an executive midseason is a rare
move, but that the men were long-
time friends of the famously loyal
Ford family made the move most all
the more shocking. Lewand, in par-
ticular, was close to Bill Ford.
“It’s not my place to comment,”
said Lewand, who singled out Bill
Ford for thanks in a statement fol-
lowing his firing. “They are people I
care about a lot and Bill and I are
very close.”
‘Bill was there for a
number of years
representing the team.
And all of a sudden, he
was not there,’ Giants’
owner John Mara said.
Bill Ford declined to be interviewed
for the story via a spokeswoman for
the car company. “He feels he’s said
what he’s going to say on this,”
spokeswoman Susan Krusel said.
Martha Ford also isn’t talking to
the media. Beyond reading a prepared
statement at a press conference fol-
lowing the firing of Lewand and May-
hew, she has been silent publicly. The
Lions are 5-9 this year as they pre-
pare to take on the San Francisco
49ers. The record is an improvement
from the start of the season when the
team lost its first five games.
Meantime, the Lions organization
is advancing a carefully orchestrated
narrative on Martha Ford: she is
tough but caring, decisive but will-
ing to listen to outsiders who may
know better. Players spin anecdotes
year ago. The only record they’re on
pace to set is for most penalty yards.
If the Bills fail again to make the
playoffs next year, the team will set
another, more worrisome record: They
will tie the New Orleans Saints
(1970-86) for the longest playoff
drought in history. —Michael Salfino
THE WALL STREET JOURNAL.
about how Martha Ford knows their
names and gives out hugs.
The same stories have popped up
in articles about the Lions in local
and national media: The time Mar-
tha Ford spoke to the team after her
decision to fire Lewand and Mehew,
how she gave NFL Commissioner
Roger Goodell “a piece of her mind,”
following a botched call during a
game, and the time she sent a letter
to wide receiver Golden Tate after he
won a spot in the pro bowl. “She’s
not some ghost, she’s a real person
who we see here,” Tate told the
Journal during an interview ar-
ranged by the team.
Rod Wood, the longtime Ford
family financial advisor whom Ford
picked to replace Lewand, said in a
recent interview that he talks to
Martha Ford daily and that she asks
questions about “every aspect of the
business.” He declined discuss any
decisions she’s made beyond her
moves to fire Meyhew and Lewand
and hire a respected NFL consultant
to find a new general manager.
When asked about the absence of
Bill Ford, the Lions clam up. “I’m not
going to get into that,” Wood said.
Dan Orlovsky, the Lions’ backup
quarterback, spoke easily about Mar-
tha Ford, her hugs and the locker
room speech in which she read a
statement to the team. When the
conversation turned to Bill Ford, Or-
lovsky’s face flushed. “I have no
idea,” Orlovsky said. “That’s one of
the benefits of not being owner. I
don’t have to think about that.”
Bill Ford didn’t explain why he is
stepping back from the Lions in his
October radio interview with local
host Paul W. Smith.
“Since my dad died, I’ve been less
involved with the Lions and the
NFL,” he said. Martha Ford, “has got
the decision-making role.”
140
Number of years
that Tiger Woods
has been playing.
‘I live in dog years
1996, so that’s 140
years,’ Woods
wrote in a post on
his website.
Source: Tiger Woods