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Market Mayhem
Shows Up
moil in China. Stocks slumped 2.4% at midday after authori- Average down 2.3%.
world-wide, with the Dow
falling 392.41 points, or 2.3%,
to 16514.10. Oil prices slid to
Deepening turmoil in China
shook markets world-wide,
sending oil prices plummeting
ties removed a circuit-breaker
mechanism that was blamed
for triggering the stampede
The reaction underscores
growing anxiety about the
health of the global economy
Beijing’s strategy shift
backfires...................... C1
Circuit breakers show
In Cuba
their lowest levels since 2004. to new lows and driving U.S. that has wiped out more than at a time when demand for their limits.................. C1 BY DEVLIN BARRETT
Shanghai stocks were up 2.4% stocks to their worst-ever start $1.1 trillion in market value on goods and services has been Risk from yuan’s fall AND GORDON LUBOLD
at midday Friday. A1, C1-4 to a year. the mainland this week. Stocks slack and many economies are
spans world................ C3
Thursday’s declines came af- were also higher in Shenzhen, struggling with heavy debt An inert U.S. Hellfire mis-
Saudi Arabia is consider-
sile sent to Europe for training
ing selling shares in state-
purposes was wrongly shipped
owned oil company Aramco,
a move that comes amid a
broad privatization effort. A1 Anxiety Deep in A surprisingly sharp drop in China’s yuan set
off global declines in stocks and oil, and sent
from there to Cuba in 2014,
said people familiar with the
matter, a loss of sensitive mili-
Consumers didn’t pull
the Red tary technology that ranks
back as much as feared dur-
ing the holidays, as retail
sales rose 3.3% despite fewer
On World investors looking for safer harbor in assets
like Treasurys and gold.
among the worst-known inci-
dents of its kind.
The unintended delivery of
visits to physical stores. B1
Apple shares closed below
$100 for the first time in 15
Factory SHANGHAI COMPOSITE,
YEAR-TO-DATE PERFORMANCE
WEDNESDAY
–5.0%
the missile to Cuba has con-
founded investigators and ex-
perts who work in a regula-
months amid the market rout
and signs of waning growth in
China and in iPhone sales. B1
Floor MONDAY
–6.9% TUESDAY
–7.1%
tory system designed to
prevent precisely such equip-
ment from falling into the
BY MARK MAGNIER wrong hands, said those famil-
Resource companies are iar with the matter.
facing renewed pressure to BEIJING—China’s battered For more than a year, amid
cut spending and investor stock and currency markets a historic thawing of relations
payouts as billions in share- are emblematic of the pessi- between the U.S. and Cuba,
holder value evaporates. B1 mism settling over the world’s American authorities have
second-largest economy. tried to get the Cuban govern-
News that United’s CEO
“Everyone thinks this will ment to return the missile,
had a heart transplant raised
be a very troubled year,” said said people familiar with the
new questions about disclo- THURSDAY
Willy Lin, managing director of matter. At the same time, fed-
sure of his health status. B1
Many Wall Street traders,
Milo’s Knitwear Ltd., a Hong
Kong company that exports
–11.7% eral investigators have been
tracing the paper trail of the
especially those on fixed-in- skirts, suits and other apparel Trading was halted about 30 wayward Hellfire to determine
minutes after opening.
come desks, are likely to to Europe and the U.S. from its if its arrival in Cuba was the
see cuts in their bonuses. C1 factory in Dongguan in south- work of criminals or spies, or
ern Guangdong province.
YEAR-TO-DATE DJIA Yuan vs. Dollar Brent crude oil Gold +4.5% the result of a series of blun-
Boeing delivered a re-
cord 762 jetliners last year as
Executives at businesses in
CHANGE
–5.2% –1.5% –9.5% ders, these people said.
the manufacturing heartland Hellfires are air-to-ground
airlines expanded fleets. B4
of southeastern and eastern missiles, often fired from heli-
Finish Line will close up China, which churn out every- copters. They were designed
SHANGHAI
to a quarter of its stores and thing from electronic gadgets COMPOSITE as antitank weapons decades
replace its CEO after the re- to textiles to furniture, talk of ago, but have been modern-
tailer posted a steep loss. B3 slack orders and late pay- ized to become an important
ments. China’s traditional part of the U.S. government’s
World-Wide heavy industrial engines of
Sources: Factset (markets and gold); SIX Financial (Brent Crude); The Steel
antiterrorism arsenal, often
steel, cement and glass remain Index (iron Ore); Tullett Prebon (currencies) THE WALL STREET JOURNAL. fired from Predator drones to
saddled with excess capacity carry out lethal attacks on tar-
An inert U.S. missile sent built up in the boom years. gets in countries including Ye-
to Europe to be used in a “No numbers point to a rosy dark mood that has spilled into In December, a closely So far, the $10 trillion Chi- men and Pakistan, said people
NATO exercise was wrongly picture,” said Mr. Lin. the country’s stock and cur- watched gauge of China’s man- nese economy has been a cush- familiar with the technology.
shipped from there to Cuba, The numbers got even rency markets is justified be- ufacturing activity contracted ion against the downturn, and This particular missile
a serious loss of sensitive worse Thursday as Chinese cause of the looming economic for the 10th consecutive there still are some economic didn’t contain explosives, but
military technology. A1 stocks skidded so much that challenges and skepticism that month, while its service-sector bright spots. Consumer spend- U.S. officials worry that Cuba
trading on the Shanghai ex- the government has the right continued to expand. ing is holding up, while hiring could share the sensors and
The Obama administration
change was halted for the day policies to meet them. China’s imports fell 15% in in the service industry has targeting technology inside it
said it is considering new
just a half-hour into the ses- In the third quarter, China’s the first 11 months of 2015 as helped offset lost manufactur- with nations like China, North
sanctions against North Korea
sion because the main stock economic growth slowed to purchases from all of the coun- ing jobs. Industrial production Korea or Russia, these people
and that China’s approach to
index fell 7%. Chinese stocks 6.9%, or less than half its try’s trading partners declined, is stabilizing, boosted by infra- said. Officials don’t suspect
its isolated ally had failed. A7
rose Friday morning amid vol- growth rate in 2010. The gov- except for Vietnam and Can- structure spending. Cuba is likely to try to take
Iran accused Saudi Arabia atile trading in Asia. ernment has set this year’s ada, according to official Chi- In a New Year’s address apart the missile and try to
of bombing its embassy in Economists and executives target at 6.5%, which would be nese data. Exports fell by a broadcast over state media, develop similar weapons tech-
Yemen during an airstrike, at Chinese companies said the the slowest pace in 25 years. modest 3%. Please see CHINA page A8 Please see CUBA page A7
heightening tensions. A12
The Obama administration
is making little progress in In Liberia, Radio Listeners
getting more young adults
to sign up for policies on the Eagerly Share Their Lunch
federal insurance exchange. A3
i i i
GOP Health
Administration officials Alternatives Are
will hold talks with tech CEOs Fans phone in to describe potato greens,
on doing more to block ter- Works in Progress
rorists’ use of the Internet. A2 goat’s head soup; ‘I’m proud of what I eat’
Iraq’s military said Is- Presidential hopefuls have yet to
lamic State’s spokesman was spell out in detail what would
BY DREW HINSHAW it on the radio. At least, that replace Obama’s law. A4
critically injured in an air-
is how committed radio fans
strike in Anbar province. A12
CHIP SOMODEVILLA/GETTY IMAGES
eating
through
some
their midday
meal. Some-
times, DJs pose
Saudis Eye IPO for Oil Crown Jewel
potato greens!” a follow-up BY SUMMER SAID scale, and could exclude its stra- also shown some signs of finan-
CONTENTS In the Markets....... C4 Mr. Togba an- question: How AND KEVIN BAXTER tegic production assets alto- cial strain, ratcheting down gov-
Arts & Ent...... D2,4-7 Opinion................. A9-11
Business News.. B1-6 Sports.......................... D8
nounced, de- Potato greens spicy is the gether. But an initial public of- ernment spending and reducing
Crossword................. B6 Technology............... B5 scribing a local meal? What LONDON—Saudi Arabia is fering of only a small slice of generous energy subsidies to
Film............................... D3 U.S. News............. A2-5 vegetable stew similar to col- restaurant did you buy it considering selling shares in its what is widely considered one of save cash.
Global Finance........ C3 Weather..................... B6 lards. “And rice. With palm from? Did somebody cook it state-owned oil company, a the world’s most valuable com- Talk of a partial listing of
Heard on Street.... C8 World News. A6-7,12
oil.” for you? move that comes amid a broad panies could raise billions of Aramco has surfaced from time
“Can you bring me a Many lunch enthusiasts privatization effort afoot in the dollars. That would bolster gov- to time for years. In an inter-
> plate?” the DJ replied. spend their weekdays dialing kingdom, but also at a vulnera- ernment coffers at a time when view with the Economist maga-
“Yeah!” one station after another, hop- ble time for Riyadh because of global oil prices continue to zine published Thursday, Mo-
Here on the sweltering ing for a chance to make tumbling energy prices. slide, recently hitting lows not hammad bin Salman Al Saud,
coastline of West Africa, it what’s on their plate a national Any move to list shares in seen in over a decade. Please see ARAMCO page A12
isn’t enough to just eat your conversation piece. Some tune Saudi Arabian Oil Co., better Riyadh has a sizable cushion
s Copyright 2016 Dow Jones &
Company. All Rights Reserved lunch. For maximum enjoy- in online. Several have called known as Saudi Aramco, would of foreign reserves to protect it Rout forces oil, mining firms
ment, you have to talk about Please see LUNCH page A2 almost assuredly be limited in from lost oil revenue. But it has to cut deeper.............................. B1
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A2 | Friday, January 8, 2016 * **** THE WALL STREET JOURNAL.
U.S. NEWS
City Bankruptcy Leaves Little for Lawsuits
BY KATY STECH San Bernardino’s police de- dled an excessive-force lawsuit
partment has been hit hard by in Vallejo, which emerged
Terry Wayne Jackson died the city’s financial problems, from bankruptcy in 2011,
on March 1, 2009, after several losing 30% of its officers in re- called it “alarming” that bank-
San Bernardino, Calif., police cent years despite the city’s ruptcy law can let a city “erase
officers, responding to com- high violent-crime rate. Under its own liability” when its po-
plaints the 21-year-old men- the bankruptcy plan, the city lice officers violated a person’s
tally ill man wasn’t wearing would spend $56.5 million in civil rights.
pants in a park, wrestled him the next five years to hire offi- “Civil-rights advocates may
to the ground and tasered him. cers and buy new vehicles. need to go to Congress and get
His mother, Sheryl Nash, The plan, however, would clarification so there are bet-
sued and won. City leaders inflict some of the deepest ter protections for victims of
promised to pay $686,000 by cuts on people who have sued police brutality,” said Melissa
July 15, 2012. Two weeks after over incidents of alleged po- Jacoby, a law professor at the
that deadline, San Bernardino lice brutality or excessive University of North Carolina-
filed for bankruptcy. force. San Bernardino faced Chapel Hill.
U.S. NEWS
Guidelines:
Consume
Young Adult Enrollees Disappoint
No rise seen so far at cause premiums to rise, forc-
10%
Maximum share of daily
calories from added sugars
2,300 mg
Recommended limit for daily
sodium intake
3-5
BRENDAN SMIALOWSKI/AGENCE FRANCE-PRESSE/GETTY IMAGES
CAMPAIGN
will announce Monday which candidates qualify. Rather than set a cutoff for strength of support in polls, the network is relying on rankings: love, love to run against Donald
the top six in national polls, plus anyone in the top five in either Iowa or New Hampshire, based on an average of the five most recent Trump.”
recognized polls. As of now, barring a slew of new and significantly different numbers by Monday evening, Sen. Rand Paul and Carly Fiorina
look likely to be demoted to the early debate after previously appearing on the main stage. And Ohio Gov. John Kasich could get bumped too.
WIRE —Heather Haddon and
Peter Nicholas
HHHHH
Nationally Iowa New Hampshire REPUBLICAN PRIMARY
Individual
polls
Average Top six in an average of the five
most recent national polls
Top five in an average of the five
most recent state polls
Top five in an average of the five
most recent state polls REPUBLICAN PRIMARY
Christie Takes Issue
DONALD Trump Rally in With Rubio Attack
TRUMP 1st 2nd 1st Chris Christie and Marco Ru-
Vermont Attracts bio used to be friends, or so
TED the New Jersey governor
CRUZ 2nd 1st 4th Protesters seemed to think. Then Rubio’s
MARCO The attempt by Republican camp this week began attack-
RUBIO 3rd 3rd 2nd Donald Trump to limit his sold- ing his GOP presidential rival
BEN out rally in Vermont on Thurs- for his record in New Jersey on
CARSON 4th 4th day night to those who had education and gun control.
CHRIS pledged to support him for “I’ve been very nice to
CHRISTIE 5th 3rd president didn’t work out ex- Marco, so I’m confused,” Mr.
JEB actly as planned. Christie said Thursday. The at-
BUSH 6th 5th “I’m taking care of my peo- tacks, he said, seemed to echo
The second-tier pileup
RAND In Iowa, Sen. Paul here provides the only real ple, not people who don’t want similar barbs tossed at him by
PAUL and Mrs. Fiorina trail ‘on the bubble’ contender. to vote for me or are unde- former Florida Gov. Jeb Bush. “I
JOHN
In national polls, these Mr. Bush by two cided,” Mr. Trump said in a guess the same person who
candidates miss the and three points, statement issued by his cam- talked to Jeb is now talking to
KASICH 5th
cut as of now. It’s respectively,
unlikely there will be
paign. Marco,” he said.
CARLY in an average Gov. Kasich would be
FIORINA enough new polls— of recent polls, demoted if Mr. Bush’s
But the rally at the Flynn —Heather Haddon
and that they can poll making it difficult average surpasses his Center for the Performing Arts
MIKE high enough—to qualify for either to climb by Monday. in Burlington, the home of BENEFITS
HUCKABEE under this metric. into the fifth spot. Democratic candidate Sen. Ber-
RICK nie Sanders, attracted protest-
Clinton Spells Out
SANTORUM
ers, curiosity-seekers and Dem- Family Leave Plan
0 10 20 30% 0 10 20 30% 0 10 20 30% ocratic supporters in addition Hillary Clinton’s campaign
to Mr. Trump’s fans. And his says her plan for paid family
Note: Polls included are those from organizations that use standard methodological techniques (i.e., live interviewers, random digit-dial sampling techniques and include both landlines
and cell phones) and released as of 5 p.m. Thursday. Iowa averages based on six polls since the fifth and sixth most recent were released on the same day. speech was repeatedly inter- leave is just as good as the
Source: HuffPost Pollster Randy Yeip/THE WALL STREET JOURNAL. rupted by protesters, some of proposal backed by Sen. Bernie
whom were removed by secu- Sanders, and it wouldn’t require
rity guards. a new payroll tax.
“Confiscate their coats,” Mr. Mrs. Clinton has been on the
Obama Invites NRA to Meet on Gun Policy Trump said to the crowd, in re-
sponse to the protesters. “It’s
about 10 degree below zero.
You can keep his coat. Tell him
defensive because she doesn’t
support the leading plan in
Congress. But her campaign
said she, too, would offer 12
BY COLLEEN MCCAIN NELSON town-hall event on CNN. The wake of the school shooting in The NRA didn’t respond to we’ll send it back to him in a weeks of paid family and medi-
president said the NRA was in- Newtown, Conn. requests for comment. It de- couple of weeks.” cal leave and a minimum two-
President Barack Obama stead focused on “over-the- During the town-hall event clined to participate in the town Mr. Trump directed fire to thirds wage replacement rate.
said Thursday he would meet top” rhetoric instead of a pro- Thursday, Mr. Obama fielded hall, telling CNN it was a “public Democratic front-runner Hillary The announcement came a
with National Rifle Association ductive discussion. more than an hour’s worth of relations spectacle orchestrated Clinton, but also pushed at Mr. day before Mr. Sanders was to
officials to discuss gun policy, Vice President Joe Biden questions about his executive by the White House.” Sanders. “Oh would I love to discuss his plan in Iowa. He has
but the group has declined met with the NRA and other actions aimed at expanding Mr. Obama revealed during run against Bernie. That would criticized Mrs. Clinton for her
multiple invitations to come to gun-rights groups in January background checks for gun the town hall-style conversation be a dream come true,” he said. rejection of the pending bill,
the White House. 2013 when the White House buyers and tightening rules for that he has never owned a gun, In a telephone town hall which he supports.
“We have invited them re- was considering new efforts to people who purchase some of saying that he has done some meeting with supporters Thurs- —Anna Louie Sussman
peatedly,” Mr. Obama said at a reduce gun violence in the the most dangerous weapons. skeet shooting at Camp David. day night, Mr. Sanders was and Laura Meckler
Rising rates.
Look closer for
opportunities.
BlackRock is trusted to manage more money than any other investment firm in the world.1
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A6 | Friday, January 8, 2016 THE WALL STREET JOURNAL.
WORLD NEWS
Assailants Overwhelmed German Police
Internal report depicts ing to Germany.
“We are stretched to our
mass aggression and limit and we have terror alerts,
chaos in Cologne on migration and mass crimes.
That’s a huge problem,” Mr.
New Year’s Eve Walter said.
Chancellor Angela Merkel
BY RUTH BENDER sought to deflect criticism by
calling for a full investigation
A detailed account of the of the night’s events.
mass assaults in Germany’s “Women’s feeling of com-
fourth-largest city on New plete defenselessness is intol-
Year’s Eve emerged Thursday, erable, also to me personally.
drawing a picture of chaos and Therefore, it’s important that
aggression that left police everything that happened gets
overstretched and attackers put on the table,” Ms. Merkel
enjoying virtual free rein. said Thursday. She said the
An internal federal police government would examine
report dated Jan. 4 and seen whether enough has been done
by The Wall Street Journal de- to facilitate the deportation of
scribed scenes in Cologne of asylum seekers who are con-
crying women fleeing sexual victed of crimes; German law
molestation from crowds of currently sets high hurdles for
men, passersby trying to res- such deportations.
cue young girls from being According to the federal po-
raped, and groups of intoxi- lice report about the Cologne
satirical newspaper Charlie has moved to secure the borhood in the vicinity of the
Hebdo one year ago. country, imposing state-of- suspected attack in the 18th
The Paris prosecutor’s of- emergency measures that give arrondissement on Thursday,
fice said it was investigating police extraordinary powers questioning shop owners and
the attempted attack as an act to conduct, among other looking for possible wit-
of terrorism. The man things, warrantless searches nesses. The street where the
shouted “Allahu akbar” before and order house arrests. man was shot was cordoned
being killed by police at the Thursday’s suspected at- off.
station’s entrance, the office tack at the northern Paris po- Marwan Imad, 35, who
said. He was discovered to be lice station coincided with a owns a mobile-phone shop
carrying papers showing Is- speech by French President close by, said he alerted the
lamic State’s flag and “a François Hollande to security police about one man, who
handwritten note in Arabic Officers stood guard near the Paris police station that officials say a man tried to attack Thursday. forces about the country’s appeared to be around 25
that was unequivocal about fight against terrorism. years old, and had walked
his intentions,” it said. theft. The man had no docu- calization.” people dead and kicked off a Mr. Hollande pledged that into his store shortly before
Also found on the man’s ments but had said that his The specter of fresh terror- deadly year of terrorism in the government would pro- the attempted attack.
body was a device with pro- name was Salam Ali and that ism on the streets of Paris re- France. In the days after the pose a law to ensure France “He acted strangely, and
truding wires, officials said, he was born in Morocco in vives concerns in a country Charlie Hebdo attack, an addi- isn’t left vulnerable when the seemed drunk or on drugs,”
though a bomb squad deter- 1995. Police at the time or- already on high alert after a tional five people were killed state of emergency expires in Mr. Imad said. “He asked for a
mined that it held no explo- dered him to leave the coun- bruising year. by a man who claimed links March. The new law could al- phone and a SIM card, but
sives. try, a spokeswoman for the The suspected terror attack with Islamic State. low authorities to confine in- then left abruptly,” he added.
Authorities on Thursday prosecutor’s office said. came exactly one year after The ensuing year included dividuals returning from Syria It is unclear whether he was,
evening said they matched his French Justice Minister Chris- the massacre by two brothers what authorities say was the to their homes and more eas- in fact, the man who was later
fingerprints to those of a man tiane Taubira said the man claiming allegiance to al Islamic State-inspired decapi- ily track and detain suspects shot by police.
detained on the French Rivi- appeared to have had no Qaeda in and around Charlie tation of a businessman at a marked as a potential threat —William Horobin
era two years ago for alleged known “link with violent radi- Hebdo’s offices that left 12 chemical factory near Lyon by intelligence services, Mr. contributed to this article.
WORLD NEWS
Pyongyang
Uses Blast
U.S. Seeks China’s Help on Korea
WASHINGTON—The Obama need to engage in much more
partment, which oversees the tions would like to reverse-engi- Rota, Spain, for a error, the criminal probe would
sharing of sensitive military neer parts of a Hellfire to de- NATO exercise. end and the State Department
In June 2014, Lockheed Martin
technology with allies. velop countermeasures or to officials realize the missile is would have to determine
A Lockheed Martin spokes- improve their own missile sys- Source: people familiar whether to pursue a settlement
missing and likely in Cuba. with the investigation
woman declined to comment, tems. with Lockheed Martin over the
Kim Jong Un signed an order referring queries to U.S. govern- “Now it’s a proliferation con- THE WALL STREET JOURNAL. incident.
of the nuclear test on Jan. 3. ment officials. cern—someone else now under- Companies that violate ex-
The people familiar with the stands how it works and what at DIA declined to comment. ping-company workers who port-control laws can be fined
as effective,” said Kim Heung- case said the missile was sent to may have been cutting edge for But a defense official confirmed should have noticed the labeling millions of dollars and be re-
kwang a North Korean defec- Spain and used in the military us is deconstructed and pack- that DIA has reviewed the im- on the shipping crate appar- quired to address whatever is-
tor and executive director of exercise. But after it was packed aged into what other players plications of the lost missile. ently allowed it to proceed until sues contributed to the prob-
North Korea Intellectuals Soli- up, it began a trip through Eu- sell on the open market—and The Cuban Embassy in it ended up in Cuba. lem, the State Department
darity, a Seoul-based group of rope, was loaded onto a truck possibly provided to countries Washington didn’t respond to If someone intentionally sent official said. Lockheed Martin
dissidents. and eventually sent to Germany. that we wouldn’t sell to,” said multiple messages seeking com- it astray, that could constitute a has been cited in the past by
North Korea’s state media The missile was packaged in Mr. Singer. ment. Representatives at the violation of the Arms Export State.Lockheed Martin is coop-
agency published accounts of Rota, Spain, a U.S. official said, The Defense Department’s embassies of Spain and France Control Act, as well as a possi- erating with investigators, U.S.
citizens lauding the test. where it was put into the truck Joint Attack Munitions Systems didn’t immediately comment, ble violation of Cuban sanctions officials said.
North Korean defectors say belonging to another freight- project office asked officials at while attempts to contact the laws. There are more than 25 “This is a complicated busi-
that the country arranges shipping firm. That trucking the Defense Intelligence Agency German Embassy were unsuc- countries to which U.S. military ness, mistakes are inherent in
community meetings after ma- company released the missile to to provide an assessment of the cessful. exports are generally prohib- complicated businesses,” the of-
jor events such as missile yet another shipping firm that security impacts of the lost mu- Several officials and industry ited. Cuba was added to the list ficial said. “Mistakes are a part
launches and nuclear tests to was supposed to put the missile nition to determine the risks as- experts said what was most baf- in 1984. of any human endeavor. Mis-
spread the message that the on a flight originating in Ma- sociated with its loss. An official fling was how so many ship- The State Department’s of- takes are made.”
success is directly due to their
leader. Images from North Ko-
rea’s state media published
Thursday showed gatherings
of people described as sup-
porting the test.
Iceman’s Gut Sheds Light on Human Migration
Ho Chun Gum, an official at BY ROBERT LEE HOTZ They have noted his healed Africa in successive waves
a cooperative farm in Pyong- bone fractures, diagnosed starting about 60,000 years
yang, was quoted by the news Microbes that once trou- hints of Lyme disease, exam- ago. It serves as a biomarker
agency as saying: “We, agri- bled the stomach of a prehis- ined the food stuck between for the global travels of hu-
cultural workers, will do our toric hunter known as “Otzi his teeth, and mulled the mankind.
best to bring about a bumper the Iceman,” who died on an meaning of his 61 tattoos. “The Iceman’s strain must
crop this year with the na- Alpine glacier 5,300 years ago, They analyzed his own genetic have been the original popula-
tional dignity and pride of be- are offering researchers a rare inheritance, including the DNA tion that inhabited the stom-
ing nationals of a nuclear- insight into the early settle- of the energy-producing mito- achs of Europeans 5,000 years
GAMMA-RAPHO/GETTY IMAGES
weapons state.” ment of Europe. chondria that powered his ago,” Dr. Moodley said.
Pyongyang carefully filters In findings re- cells. That ancestral strain appar-
what its people can read or ported Thursday in Science, an “We know he had a rough ently mixed with variants
hear about through official international research group lifestyle,” said Frank Maixner thought to have originated
sources. analyzed remnants of ulcer- at the European Academy In- more recently in North Africa,
Since Mr. Kim took power causing microbes called Heli- stitute for Mummies and the to create the variant common
at the end of 2011 after the cobacter pylori exhumed from Iceman in Bolzano, Italy, who in Europe today. All told,
death of his father, Kim Jong the well-preserved mummy of led the team of 23 scientists. strains of Helicobacter pylori
Il, North Korean propaganda the Neolithic nomad. With Mountaineers with Otzi where he was found in the Alps in 1991. “We found a lot of pathologi- infect about half of the world’s
officials have built up an im- modern DNA sequencing tech- cal conditions.” population.
age of the young leader as the nology, they reconstructed the Asia, and not those more prev- biologist Yoshan Moodley of In the new study, they de- The researchers also deter-
brilliant heir of the ruling dy- genetic structure of the mi- alent in modern Europe. The the University of Venda in frosted the mummy and rum- mined that the bacteria had
nasty. Assigning a specific new crobe—the oldest known finding suggests that multiple South Africa, who helped ana- maged through the contents of inflamed his stomach lining,
achievement to him such as pathogen ever sequenced. waves of migrants settled the lyze the bacteria’s genome. “It his stomach. There, they re- indicating that the prehistoric
the development of a hydro- By comparing the specimen region, introducing new is mind-boggling, really.” covered evidence of a microbe hunter, fleeing into the icy
gen bomb, whether true or to modern variants, they dis- strains of the bacteria as they Since two German hikers that has infected humankind highlands where he was shot
not, helps underpin that ef- covered that this early Euro- intermingled, they said. stumbled over Otzi in 1991, re- for so many thousands of in the back with an arrow and
fort. pean wanderer was infected “This one genome has put searchers have probed, prod- years that distinctive strains beaten, may have been feeling
—Min Sun Lee in Seoul with a strain that survives to- things into wonderful perspec- ded, biopsied, X-rayed, and evolved as anatomically mod- ill on the day he was mur-
contributed to this article. day only in India and South tive for us,” said evolutionary CAT-scanned the mummy. ern humans migrated out of dered.
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A8 | Friday, January 8, 2016 * ***** THE WALL STREET JOURNAL.
WORLD NEWS
Minister Mark Rutte. UNITED KINGDOM posal, immigrants to the U.K. LIBYA governments. Islamic State this
World The EU and Turkey agreed in
November that Ankara would
Orban Sets Conditions from other EU countries would
be eligible for welfare benefits
Truck Bomb Kills week renewed attacks on oil
fields in Libya’s east, stoking
Watch take steps to cut the flow of mi-
grants in return for €3 billion
To Back British Plan
Hungary’s prime minister said
only after four years.
Some European officials have
At Least 50 People
A truck bomb killed at least
fears that the group is trying to
undermine the two govern-
($3.22 billion). The money was he would back the U.K.’s pro- said curbing welfare benefits of 50 people at a police academy in ments’ power-sharing pact by
for projects aimed at integrating posal to limit welfare benefits to EU citizens would breach a fun- the western Libyan town of hitting a main source of revenue.
Syrian refugees, helping Turkey other European Union nationals damental EU principle of free Zliten on Thursday, security and Thursday’s bombing caused
with its EU membership bid and only if certain conditions were movement of people. Hundreds medical officials said, one of the massive structural damage to
TURKEY speeding up negotiations on met, holding back support for of thousands of Central Europe- highest death tolls from a the training center in Zliten,
granting visa-free travel to Turk- Prime Minister David Cameron’s ans live and work in the U.K. bombing since an Islamic State about 100 miles east of Tripoli.
EU Pressures Ankara ish citizens. bid to renegotiate Britain’s rela- Mr. Orban said he would sup- insurgency began in early 2015. An official at Zliten Hospital said
To Cut Migrant Flow But at the end of December, tionship with the bloc. port the welfare proposal only if There was no claim of re- the number of casualties was
The European Union is in- some 90,000 people had arrived Mr. Cameron, who met with it doesn’t discriminate against sponsibility. Libya is dominated expected to rise.
creasing pressure on Turkey to via Turkey, compared with a lit- Hungarian Prime Minister Viktor Hungarian citizens and comes as by warring militias and an Is- A bomb-laden truck charged
reduce the number of migrants tle over 100,000 in November, Orban in Budapest, has prom- a result of a common accord lamic State affiliate that controls through a security gate at the
crossing into Greece, as the according to preliminary figures ised to secure changes to the with the Czech Republic, Slova- the coastal city of Sirte and is facility and detonated in a large
Netherlands takes over the provided by the bloc’s border U.K.’s relationship with Brussels kia and Poland. Both Mr. Cam- attempting to expand its foot- crowd of officers and police re-
bloc’s rotating presidency. agency. and then allowing Britons to eron and Mr. Orban said an print. cruits, said Abdul Ghani Ben Za-
It is of “crucial importance” Turkish government officials vote by the end of 2017 on agreement could be reached on The violence is complicating hiya, chief of the Zliten Military
that the influx of migrants via didn’t respond to requests to staying in the EU. the welfare issue by the Febru- the U.N.-brokered agreement be- council.
Turkey slows, said Dutch Prime comment. —Valentina Pop Under Mr. Cameron’s pro- ary meeting. —Margit Feher tween members of Libya’s rival —Tamer El-Ghobashy
CHINA
Continued from Page One
Chinese President Xi Jinping
said the country’s economic
growth remains among the
fastest in the world. He said
measures to restructure the
economy are in full swing.
But Thursday’s selloff in the
stock market was the latest
sign that investors are losing
confidence in Beijing’s ability
to manage increasingly com-
plex problems as demand
shrivels and growth slows.
Government intervention,
which seemed to supercharge
growth for years, is now fuel-
ing more worry as new, often
poorly communicated policies
generate turbulence in the
stock and currency markets.
For example, China’s securi-
ties regulator announced late
Thursday that it would sus-
pend so-called circuit breakers
that were meant to calm mar-
kets. The regulator said that
the new circuit breakers in-
stead worsened this week’s
stock-market selling sprees.
China’s wider economy is
OPINION
It’s the American Dream, Stupid BOOKSHELF | By Philip Delves Broughton
The Republi-
can presiden-
tial candi-
the forum will be Jeb Bush,
who—in a primary that has
been all about personality—is
That piece is about making
sure federal dollars are effec-
tive. The flip side, says Mr.
that exists in America over a
dysfunctional federal govern-
ment and Mr. Obama’s poli-
Something
dates meet to
debate again
next week in
having a rough go of it. Yet the
former Florida governor shines
on policy. He and his “Right to
Bush, is reform to ensure that
“our poverty programs don’t
reward nonwork, at the ex-
cies. As the polls testify, this
has been a shrewd strategy,
one that is working for them
In the Water
POTOMAC South Caro- Rise” super PAC understood pense of people who struggle among the conservative pri-
WATCH lina. But a far
more conse-
early on the particular political
challenge of class warfare. In
and don’t get government as-
sistance.” So he’d filter out
mary electorate.
The Ryan forum deals more
The Geography of Genius
By Kimberley
quential event advance of his talk he’s rolling federal provisions that dis- with the general election. The By Eric Weiner
A. Strassel
is taking place out his own empowerment and courage work, and institute question for the GOP and con- (Simon & Schuster, 353 pages, $26.95)
T
in that state welfare-reform agenda, which new safeguards against those servative voters is whether
over the weekend. It’s called who’d scam the system. “We they think a nominee can win o set out in search of the geographical roots of genius
the Kemp Forum on Expanding can make this case if we do it by appealing primarily to out- sounds, as Eric Weiner freely admits, like a “colossal
Opportunity, and it may show A few candidates, at in an optimistic way, with pas- rage and anxiety, while writ- fools’ experiment.” An intellectual search for El Do-
whether the GOP still knows sion and conviction,” he says. ing off significant portions of rado. And as he sets out for Athens, the first stop on a global
how to win elections. least, get it: The GOP “Or we can assume that people the electorate. Mitt Romney tour he describes in “The Geography of Genius,” I felt in-
The forum is the brainchild needs Jack Kemp’s want to be stuck in poverty, or certainly left the impression clined to agree. My fears grew as he settled into an Athenian
of Speaker Paul Ryan, his at- ignore the problem. And de- that he believed 47% of Amer- coffee shop and began riffing on vice, geography, liberty and
tempt to ensure that the even- aspirational agenda. fault to the left.” icans was lost to him. all the other possible ingredients that led to an explosion of
tual nominee rolls into the The inspiring news is that Whether they were before he culture in the fifth century B.C. Three hundred pages of idle
general election able to finally Mr. Bush isn’t alone in seeing said it, they certainly were journalistic thumb-sucking seemed to loom ahead, culminat-
compete on one of the biggest represents some of the lead- the challenge. Marco Rubio will after. A big-tent party appeals ing in a chapter on Silicon Valley, whose status as a hotbed
policy and political challenges ing thinking on how to fix the be at this weekend’s forum, no to aspirations. of genius doesn’t strike me as at all obvious.
of the day: poverty and in- $1-trillion-a-year federal pov- doubt to talk about his own Hillary Clinton has no inten- But there are some writers whose company is worth
come inequality. Mr. Ryan erty-industrial complex—and proposals for revamping fed- tion of ceding ground here, and keeping, whatever the subject. Bill Bryson can noodle on
understands that this issue how to get some political eral welfare programs. Chris she’s already pummeling Re- everything from Shakespeare to English bathroom plumb-
isn’t some sideshow, but a credit for it. Christie will be there, and will publicans as heartless richies ing and his audience re-
potentially decisive political Underlying the Bush reforms probably reprise his compelling who will leave the poor to mains enthralled. There
question of 2016. To update is a continued commitment to thoughts on drug dependency starve, and the middle- and were those old New Yorker
the old phrase: It’s the Ameri- jacking up economic growth— and crime. John Kasich will be lower-classes to live paycheck writers who could some-
can Dream, stupid. which is still the fastest way there, and surely will walk to paycheck. That strategy how make 10,000 words on
For eight years, Barack known to man to alleviate through some of the innovative alone is a reason for Republi- sphagnum moss fascinating.
Obama has imposed failing poverty. Next up is demolishing anti-poverty reforms in his cans to embrace the old Jack And Mr. Weiner is blessed
economic policies on the a federal bureaucracy that is state, including his effort to Kemp antipoverty approach, with this gift. He is a prober
country, even as he has bril- designed to keep the depen- help former prisoners return to to pivot from defense to and questioner, a big-
liantly exploited the results dent dependent. Mr. Bush work. Also in attendance will offense. An additional reason hearted humanist who will
for political gain. Democrats would sweep away an array of be Ben Carson, Carly Fiorina is Mrs. Clinton herself. Demo- always take a colorful, con-
produced stagnating wages, federal food-stamp and hous- and Mike Huckabee. The party crats have coronated a partic- tradictory reality over some
rising prices, economic in- ing programs and give direct has already moved a long way ularly flawed class warrior— unfounded certainty.
security and failed antipov- grants and flexibility to the on this question. one with doting ties to Wall Why is it that genius isn’t
erty programs—and then states instead. States would be More interesting are the Street and a penchant for equally distributed over time
somehow blamed the resulting able to get dollars to the local names of those who are skip- cashing checks for very large and place but rather flares up
inequality and fear and destitu- and neighborhood organiza- ping the forum. That includes speaking fees. briefly in certain places and
tion on conservatives. They’ve tions that actually revitalize Donald Trump, Ted Cruz and If there were ever a moment then disappears again? Mr. Weiner set
cast Republicans as the party struggling communities. These Rand Paul. The absence of for Republicans to reorient a out to find answers by visiting seven places where, at one
that doesn’t care about that grants would have the added Messrs. Trump and Cruz isn’t debate, this is it. Their shot time or another, he felt that human creativity had thrived.
47%, that slashes federal benefit of allowing for compe- necessarily a surprise. Both at the White House might In addition to Athens and Silicon Valley, he visits Hang-
money and hurts the needy. tition, entrepreneurship and have aimed their campaigns at depend on it. zhou, China, which experienced a cultural flowering be-
Among those speaking at accountability. stoking the plentiful outrage Write to kim@wsj.com. tween the 10th and 13th centuries under the Song dynasty;
Edinburgh, to study the roots of its late 18th-century intel-
lectual boom, which produced the likes of Adam Smith and
Are Allah and Jesus the Same God? David Hume; Florence, to examine the Renaissance; Cal-
cutta, where between 1840 and 1920 British culture and In-
dian culture collided to produce a vibrant intellectual life;
HOUSES OF Do Christians tion to humanity, the nature of ogy and orthodoxy.” Still, they are not two paths up and Vienna, which had two moments of genius: the era of
WORSHIP and Muslims God, the path to salvation, and Should Ms. Hawkins keep the same mountain. Christians Mozart and Beethoven and the late-19th and early-20th
By Stephen worship the the life of prayer.” The school her spot on the faculty? It isn’t do not believe in the divine century heyday of characters like Freud and Klimt.
Prothero same God? placed her on leave not for clear that she committed a inspiration of the Quran. Mus- Academics have tried to understand the reasons for
For a month, wearing the hijab, the college plain violation of Wheaton’s lims do not believe that Jesus these flowerings, but their research sits hunched within the
controversy later explained, but for her statement of faith. And the is an incarnation of God. narrow silos of anthropology, psychology, history, even me-
has swirled over that question “theological statements,” theological issues are confus- Ms. Hawkins may have teorology. Good weather seems to attract the best and
at Wheaton College in Illinois. which included the claim that ing. Does the question concern hoped to respond creatively to brightest to Silicon Valley—but Vienna and Edinburgh did
In December, Larycia Hawkins, Christians and Muslims “wor- who is listening when a man hateful rhetoric against Mus- fine under gray skies. Constraints made the Scottish
an associate professor of ship the same God.” lims, which is admirable. She “scrappy,” in Mr. Weiner’s description, hell-bent on improv-
political science, was placed on Southern Baptist Theologi- enjoys the liberty to believe ing what they had—from farm and factory equipment to
administrative leave after she cal Seminary President Albert Wheaton College gets what she pleases about God their basic understanding of how society functions. But
posted on Facebook that she Mohler defended Wheaton’s under the First Amendment. where Scottish genius thrived on adversity, Renaissance
was donning a head scarf administration on his website, caught in a wrangle But Wheaton shares the same Florence gorged on patronage: The abundant wealth of fam-
through the pre-Christmas sea- noting that Christians worship over teaching about liberty to defend its Christian ilies like the Medicis funded a thriving market of artists.
son of Advent. She wrote: “I “the triune God”—Father, Son identity in a nation in which The “deep dung of cash,” as D.H. Lawrence put it, fre-
stand in religious solidarity and Holy Spirit. “The Quran Islam and Christianity. the “Star Wars” saga is more quently fertilizes genius.
with Muslims because they, claims that to confess Jesus widely known than is the pas-
like me, a Christian, are people Christ as the divine Son and sion of Jesus.
of the book.” Earlier this week, the second person of the Trin- bows his head in prayer? If so, No doubt Christians should Art and thought thrived in ancient Athens,
Wheaton began termination ity is to commit blasphemy then all monotheists must strive to understand the Is- medieval Florence and fin-de-siècle Vienna.
proceedings against Ms. Haw- against Allah,” he wrote, con- agree that there is only one lamic faith fully, and vice
kins after a series of talks. cluding that “one cannot deny God to do the hearing. Or is versa. But pretend pluralism, What do such disparate places have in common?
Wheaton is a Christian lib- the Son and truly worship the the question whom we envi- feigning that all or most reli-
eral arts institution; every Father.” sion when we pray? In that gious traditions hinge on the
year faculty and staff sign a Not everyone was con- case, consider that Christians same truth, is no solution for The Greeks, Mr. Weiner notes, considered genius insepa-
statement of faith that affirms vinced. Yale Prof. Miroslav today do not picture the same the squabble at Wheaton or rable from virtue. For them, Steve Jobs’s notorious rages
their shared evangelical Prot- Volf, who in a 2011 speech at God that Constantine wor- anywhere else. would have diminished any claims that he might have had
estant identity. The day after Wheaton contended that shiped at his deathbed bap- to genius. The Athenians abhorred professionalism. Soldiers
Ms. Hawkins’s post, Wheaton Christians and Muslims wor- tism in 337. Mr. Prothero is a professor were poets, and poets were politicians. This led to an ex-
issued a statement underscor- ship the same God in different Islam and Christianity both of religion at Boston University traordinary cross-fertilization of ideas and talents quite
ing the “fundamental differ- ways, wrote in the Washing- affirm that there is one God, and the author of “Why Liber- alien to our era of hyperspecialization. In Hangzhou, the au-
ences” between Christianity ton Post that Ms. Hawkins’s creator and judge, who speaks als Win the Culture Wars thor discovers that Chinese genius, unlike the Greek or Aus-
and Islam, “including what suspension was about “enmity through prophets, whose words (Even as They Lose Elections)” trian kind, was free of metaphysical anguish. The Chinese
they teach about God’s revela- toward Muslims,” not “theol- are written down in scripture. (HarperOne, 2016). reveled in painting, writing, invention and adventure as the
Europeans staggered out of the Middle Ages, and they
seemed to thoroughly enjoy themselves. Mr. Weiner has tea
Crayons Down, Kids. It’s Hillary Story Time in Hangzhou with a local boy made good—Jack Ma, the mul-
tibillionaire founder of the Chinese Internet company Ali-
baba, who seems as blithe and jolly as his forebears.
By Meghan Cox Gurdon as the 1950s, when, horrible to never mind.) In the following was Joan of Arc. She carried a The author is not at all prescriptive. This is not a book for
N
relate, “it was a man’s world. pages of this paean to Hillary, sword and led men in battle,” city planners hoping to create the next Renaissance Florence
uclear threats aside, Only boys could grow up to we see the future Mrs. Clinton and, “Once there was Rosie the or Palo Alto. But he does give the reader plenty of ideas. In
North Korean political have powerful jobs. Only boys striding at the head of a pack Riveter. She was a fictional individuals, there appears to be some link between sorrow in
propaganda seems pretty had no ceilings on their of multiracial students at “a character used by the U.S. gov- childhood and individual genius. As Gore Vidal put it: “Ha-
silly to wised-up, postmodern dreams. Girls weren’t sup- prestigious East Coast women’s ernment. She was patriotic. tred of one parent or the other can make an Ivan the Terri-
American sophisticates. Who do posed to act smart, tough, or college,” her arm raised in dear She was strong.” ble or a Hemingway; the protective love, however, of two de-
these guys think they’re fooling, ambitious.” leadership. Then we turn the page and voted parents can absolutely destroy an artist.”
with their cheesy posters of When children read these Now, it is possible that one find, in full color, a noble pic- But this isn’t the kind of thing you can cultivate. Open-
happy children flocking around words—or hear them read or two children may perceive ture of the eponym: “And now mindedness—the ability to hold contradictory ideas about
the knees of a benevolent Great, aloud, more likely—they will some disjointedness in the there is Hillary.” Mr. Colón the same subject—is a common thread. It’s not the density
or Dear, or Current Leader? And be looking at LeUyen Pham’s idea that women were not poses her in front of a hazy of cities that makes them creative incubators, Mr. Weiner
surely only the brainwashed or lively illustrations of high- “supposed to be” smart or portrait of George Washington, suggests, but the way they encourage interaction and inti-
the very young could ever achieving midcentury males ambitious in those benighted as if the first president is be- macy. Millions of people clustered in a sterile, closed-
swallow the regime’s steady rendered in glum shades of times, yet there existed a pres- stowing his ghostly blessing. minded place won’t be nearly as creative as many fewer in a
supply of tales extolling the gray. Here is Albert Einstein, tigious women’s college. But it From this fabulously pomp- place like 18th-century Edinburgh, with its coffee shops,
miraculous achievements of no ceiling on his dreams. is not a child’s job to perceive ous opening, the book leads, clubs and intellectual talking shops.
the Kim dynasts. There is Albert Schweitzer the historical framework ultimately, to a silhouette of In the end, “The Geography of Genius” is useful less for
Yet perhaps we Americans with his pith helmet: smart, beneath layers of deceiving Mrs. Clinton against a golden any lessons about how to cultivate genius than for its sug-
are not entirely immune to tough, ambitious and cradling gauze. That is the job of sunrise—and the promise that gestion that genius flowers in those areas a society consid-
this sort of thing, especially in an African baby. grown-ups, and the grown-ups she “may soon change the ers most important. “Athens honored wisdom and got Soc-
an election year. Two new pic- Yet, wait: What’s that gem- who created this work are not world.” rates. Rome honored power and got an empire.” The 19th-
ture books put such a gloss on like glow in the far corner of about to let context knock the These vainglorious picture- century Viennese honored high culture and the life of the
the life and career of the pre- this maudlin masculine mon- halo off the “cool” and “fear- book renditions of the life mind and got Beethoven and Freud. Today wealthy patrons
sumptive Democratic Party tage? Could it be a girl? It is a less” HRC. story of an American machine in fleece vests pay tens of thousands of dollars to watch al-
nominee for president that girl. It is Hillary Rodham, age 8! Nor, for that matter, are the politician give an illuminating leged geniuses give 17-minute accounts of their work at TED
book editors in Pyongyang Yes, we read, “in the town of grown-ups behind “Hillary” glimpse into the mind-set of conferences. They support medical research and plans to
could take a few tips from Park Ridge, Illinois, along (Random House), a jamboree those who offer themselves improve education. They are seeking ways to prolong and
them. In the doctrine of these came Hillary, wearing thick of Rodham-puffery that puts as cogs in that machine. Like enrich human life for more people. This might not yield us
tales for children 4 to 8, not glasses and a sailor dress, the former Arkansas first lady the Kim family’s posters in the Sistine Chapel, but it may be as worthwhile.
only has the mark of great- acing tests, upstaging boys in on an absurdly grandiose North Korea, they are so richly
ness been upon Hillary class, and lining up sports female continuum. “Once there and inadvertently comic that Mr. Delves Broughton is the author, most recently, of
Clinton since her birth, but events to raise money for the was Queen Elizabeth, perhaps only true believers or the very “The Art of the Sale: Learning From the Masters About the
she has also been the libera- poor.” the wisest ruler England has young and trusting could find Business of Life.”
tor of her people—that is, of “Take that, 1950’s!” (These ever had,” author Jonah Win- them persuasive. Unfortu-
women. would be the same 1950s in ter begins. nately, it is the very young
Michelle Markel’s “Hillary which future Justice Sandra In a pallid illustration that for whom these works are Coming in BOOKS this weekend
Rodham Clinton: Some Girls Day O’Connor graduated from departs from his vibrant cus- intended. Elizabeth Strout’s truest sentence • Making Martin Luther
Are Born to Lead” (HarperCol- law school, Indira Gandhi ran tom, illustrator Raul Colón • The imperialist Gandhi • Mount Pelée’s wrath • China’s
lins) begins with an alarming India’s Congress Party, and shows the Virgin Queen look- Mrs. Gurdon writes about one-child policy • Savoring Sondheim • Tough sledding
account of the darkness that Margaret Thatcher took her ing baleful on the throne. The children’s books for the Week- • William Leuchtenburg on presidential power • & more
enfolded this land as recently first seat in Parliament. But text continues: “Once there end Journal.
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A10 | Friday, January 8, 2016 THE WALL STREET JOURNAL.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
The China Panic U.S. Is on the Sidelines With Saudis and Iran
H
ave China’s leaders lost the plot? on extensive development and strong stimulus Saudi Arabia won’t be lost by countries to bolster one terrorist
With stock-market gyrations, a weak- to achieve these targets, otherwise the coun- American fecklessness, as suggested group or another. The Saudi regime is
by your Jan. 4 editorial “Who Lost the even more repressive and undemo-
ening currency and mixed signals on try will repeat the old path, and then create Saudis?” The idea that America can cratic than Iran’s. The Saudis have
reform, Beijing’s reputation new contradictions and prob- control and rationalize the several un- been leaders in stoking Sunni-Shiite
for technocratic competence Policy disarray is lems.” raveling orders in the Middle East is conflict and Iranophobia because it
is depreciating faster than leading to fears of a The PBOC has also sent fanciful. U.S. backing of Hosni Muba- suits their internal politics. The Saudi
the yuan. This has global mixed signals on monetary rak in Egypt wouldn’t have saved him; kingdom has become its own worst
markets on edge, to say the deeper economic slide. policy. While officials say firmer moves in Syria might have enemy.
least, as the likelihood of a they have plenty of tools to slowed the tide but sectarian collapse IRWIN SHISHKO
“hard landing” for the Chi- support the economy, in of the Fertile Crescent was inevitable. Delray Beach, Fla.
nese economy grows. practice the central bank has only replaced li- The regime in Riyadh is often as
This week’s Chinese stock crash was wors- quidity lost as capital leaves the country. Real much liability as asset. The Saudis With President Obama swearing off
pursue a proxy war in Yemen marked any more erasable red lines and bat-
ened by new circuit breakers. Halting trading interest rates are relatively high.
not only by civilian-destructive bomb- tling hard to keep American arro-
is seldom a good idea, and in this case the But monetary easing is complicated by cap- ing but also inability to fight on the gance at bay, only Islamophobes and
thresholds were set so low that on Thursday ital flight. The U.S. Federal Reserve’s interest- ground. You cite Saudi Arabia for Western cultural elitists would pre-
the market opened for less than half an hour rate rise last month has caused the dollar to forming a Sunni-state coalition to sume that Muslim factions in the Mid-
before the brakes kicked in. A frozen market strengthen, and aggressive PBOC easing could fight Islamic State, but no indicators dle East won’t soon live in peace and
can’t find a natural bottom so more investors exacerbate capital outflows and put more posit Sunni troops to take and hold harmony. There no longer is an Amer-
panic, which has radiated through global mar- pressure on the yuan. China’s reserves stand territory in Syria. Saudi Arabia is one ican cowboy in Washington wreaking
kets in stocks and commodities. Late Thursday at $3.3 trillion, but it used $108 billion de- of our strongest allies? Really? havoc with an unholy blood-for-oil ji-
China’s securities regulator said it would sus- fending the yuan in December, the biggest The Middle East is churning and had in the Middle East. Islamic ex-
pend the circuit breakers starting Friday, monthly drop since 2003. In theory capital realigning. America’s mistakes, nota- tremists bent on asserting Islamic
which is good news. controls should limit money leaving, but bly the 2003 Iraq invasion and temer- global hegemony based on a perverse
ity in Syria, contributed to the chaos. interpretation of scripture are a tiny,
The stock market is also hostage to the China’s wealthy can bypass them.
Saudi Arabia isn’t ours to lose. The tiny fraction of worshipers, so esca-
opaque politics of Beijing. The Communist Meanwhile the slowing economy has ex- question is whether the House of lating sectarian conflict is nothing but
Party’s boosterism when stock prices more posed the excesses of the post-2008 credit Saud is capable of saving itself. a Western imperialist fantasy.
than doubled from late 2014 to early 2015 left boom. In response to the global panic, Beijing DAVID HALL If President Obama’s minimal
it vulnerable to public anger after June’s ini- deployed $586 billion in stimulus, largely on Columbia, Tenn. American footprint in the Middle East
tial crash. Fearful of being blamed for inves- infrastructure. It also encouraged lending for lasts through 2016, Iranians and Sau-
tors’ losses, officials forced government- housing construction and purchases, creating You largely acquit the main culprit, dis will have space and time to heal
linked institutions to buy and hold stocks to a bubble in smaller cities. The borrowing the Saudi regime itself. True, you ac- old wounds and prove that the West’s
support the market. Now those holdings hang pushed China’s debt-to-GDP ratio above 240% knowledge with gentle restraint that bigots created an imaginary Islamist
over the market, and fears they might be sold from 160% in 2007. Star banking analyst Char- “the Saudis are often difficult allies,” threat.
contributed to this week’s crash. lene Chu predicted last year that nonperform- and you duly note “the support by DAVID PALMER
rich Wahhabi sheikhs for radical Isla- Columbia, S.C.
In August the People’s Bank of China ing loans will top 20% of total assets during mist mosques and schools around the
(PBOC) suddenly announced a new method of this deleveraging cycle. world.” But since you view the Saudis The simple, but hard, truth is that
setting the yuan’s daily fixing rate and allowed This looming bill explains why Beijing’s as our “best friend” in the Arabian President Obama will sacrifice the
the currency to fall by 1.9% in a day. That economic policy is in disarray. Some offi- Peninsula, you seem inclined to over- Saudis and other allies in the Middle
poorly orchestrated move sparked fears of cials want more stimulus and industrial pol- look the full dimension of the damage East to preserve the dangerous legacy
competitive devaluation. icy, while others realize that structural re- they have done. of his nuclear deal with Iran. The mul-
Central bank officials reassured investors form and less government intervention are Ideologically, Wahhabi extremism lahs know this as do the Saudis. This
that the PBOC would keep the exchange rate key to sustainable growth. In recent months has been the fountainhead of global explains the recent actions of both
stable and that there would be no large deval- Mr. Xi has endorsed the latter point of view, terror, the ultimate source of 9/11. Al nations.
uation. But the yuan’s sudden fall over the but as the short-term pain intensifies he will Qaeda, ISIS and Saudi arms, money GERALD KATZ
and men have flowed into Mideast Edwards, Colo.
past few days has reignited those fears. The be tempted to return to Keynesian pump-
Chinese currency has fallen 5.8% against the priming that would only postpone the day
dollar since August. of reckoning.
Assumptions that Beijing would deploy fis- The good news is that a real debate is un-
cal and monetary stimulus to keep GDP derway that could lead to more market-ori-
Watching Whales at World’s Central Banks
growth at the target 7% rate have also proved ented policies. But until China’s leaders reach In “The Fed as ‘Washington bank distortion of bond prices and
wrong. A Communist Party magazine quoted consensus on reform and the slowing econ- Whale’” (Notable & Quotable, Dec. exchange rates spills over into all
General Secretary Xi Jinping last Friday omy, the confusion over the country’s direc- 31), J. Christopher Giancarlo de- other markets.
speaking against stimulus: “China cannot rely tion will sap investor confidence. scribes the Federal Reserve’s ex- Mr. Giancarlo’s quote provides
traordinary intervention in the U.S. context for a same-day Money & In-
I
that asset prices will rise and fall Japan has been “the world’s most
t’s not every day we can celebrate a less day the IRS said it is withdrawing its pro- based on Fed watching rather than hyperactive central bank” in the
intrusive Internal Revenue Service. But posal after receiving “a substantial number valuation fundamentals. past few years, with bond purchases
charities and the people who support of public comments.” Many of the comments Mr. Giancarlo’s tale is a perfect running at twice the size of the cen-
them will be happy to learn “questioned the need for do- companion to Burton Malkiel’s tral government’s net bond issu-
that the IRS has withdrawn The agency pulls its nee reporting, and many same-day op-ed “Investing for 2016 ance—labeled “double monetization”
its proposal to collect more comments expressed signifi- in an Expensive Market.” All finan- by a Morgan Stanley economist. The
donor information, including
proposal to sweep up cant concerns about donee cial asset classes appear to be Washington Whale is attempting to
Social Security numbers. small-donor records. organizations collecting and pricey, so future returns are likely change course before economic con-
In September the IRS and maintaining taxpayer identi- to be lower than normal. The best ditions require the type of doubling-
that investors can do is to diversify down intervention now under way in
Treasury Department pro- fication numbers for pur- broadly and tilt portfolios toward Europe (negative rates on bank re-
posed to give charities the “option” of filing poses of the specific-use information re- the least pricey of overvalued asset serves) and Japan (broadened bond
detailed reports on everyone who contributes turn,” said the IRS. The legitimate anger of categories. Global financial asset purchases and expanded purchases
more than $250 to a charity. The IRS was call- average citizens was amplified by stalwart prices are relatively high because of equities). Small-fry investors
ing it “voluntary,” which in government means IRS watchdogs like Rep. Jim Jordan (R., the Washington Whale and the many don’t want to be in the wrong place
the agency hasn’t gotten around to requiring Ohio) on Capitol Hill. other central banks in its pod have when whales breach.
it yet. We reported on the legitimate fear that One year after Republicans took control of prioritized market stability over in- RYAN GRAHAM
new reporting would be required of every non- the Congress, and one year before President dependent price setting. Central Melbourne, Fla.
profit—including the conservative organiza- Obama leaves the White House, the pendulum
tions that the IRS helped muzzle in the 2012 is beginning to swing against IRS abuse of tax-
presidential election. payers. Coming on the heels of other reforms Tax Internet Sales for Fairness, Federalism
Amazingly enough, in this case the IRS ap- in the year-end tax and spending bills—includ- Your Christmas Eve story “Malls Tax Hostage” unfairly takes Sen. La-
pears to have listened to concerns from the ing a ban on new IRS rules limiting political Reel as Web Roars” reports broad mar Alexander to task for fighting to
taxpayers who pay their salaries. On Thurs- activity—Thursday’s news is reason to cheer. declines in traffic at physical stores fix the discrimination in federal pol-
amid double-digit gains by online icy between local retailers and their
Ben Carson’s Pure Flat Tax merchants. There are many reasons,
but a leading cause is the fact that
online competitors.
If collecting sales taxes is too
A
many online merchants don’t have to onerous for online merchants, Con-
mericans aching for a return to faster investments. The Tax Foundation says the Car- collect sales tax. On Dec. 28, how- gress should take the obvious step
economic growth can get close to sui- son plan would provide the most economic ever, your editorial “The Internet and ban them for brick-and-mortar
cidal watching this year’s presidential growth, which would offset lost deductions and retailers as well. Sales taxes not only
increase costs for consumers but
campaign. Hillary Clinton raise after-tax incomes for all
promises more government The retired doctor Americans.
Use Social Media to Send cost the retail industry billions of
dollars annually to administer. Or is
across the board while Donald contrasts his proposal “true” Mr. Carson calls his plan a ISIS Terrorists to Osiris the Journal saying government pol-
Trump aims to disrupt the flow flat tax and our long- Regarding Andrew Hosken’s “Is- icy should create winners and losers
of products and people across with the VAT. time contributor Judy Shelton lamic State’s Deep, Poisonous Roots” by treating competitors differently?
our borders. One rare reason to calls it “the real McCoy.” Al- (op-ed, Jan 2): Perhaps the time has That’s exactly what the current stale-
step back from the ledge is that though Mr. Carson doesn’t call come to revamp our use of social mate means. By allowing online sell-
every Republican contender is promoting some out his rivals Sens. Ted Cruz and Rand Paul by media and shed more light on the ers to play by different rules, Con-
kind of bold tax reform, and this week Ben Car- name, he notes that his plan does not derive the foot soldiers of Islamic State. gress is hurting local retailers trying
son unveiled the boldest. bulk of its revenues from what amounts to “a Eu- The notion that all these crimi- to compete against the unfair, built-
The retired neurosurgeon is offering a flat tax ropean-style value-added tax (VAT). Adding a nals are hooded and thus difficult to in price advantage of not collecting
identify is false. Numerous TV news sales tax. Congress is also eroding
of 14.9% on personal and corporate income, “with VAT on top of the income tax would not only im- stories as well as online content the sales-tax base and causing states
no deductions, no tax shelters and no loopholes.” pose an immense tax increase on the American provide everyone with a very good to lose tens of billions of dollars in
Yes, that includes saying goodbye to the popular people, but also become a burdensome drag on look at many of the men in ques- revenue. States must balance their
deductions for mortgage interest and charitable the U.S. economy.” tion. Imagine the reaction if sud- budgets, perhaps through higher in-
donations. He’d exempt taxpayers earning up to This is the danger of proposing a VAT, as denly their true identities and come or property taxes or cuts in lo-
150% of the federal poverty line from forking Messrs. Cruz and Paul do to replace the corporate places of residence were revealed, cal government services.
over the 14.9%, but he’d still ask them to make income and payroll taxes. A VAT, a form of sales along with their parents’ and sib- Sen. Alexander is defending a core
a “de minimis” payment each year so all Ameri- tax at each stage of production, has proven to be lings’ names and home countries. principle of federalism: Congress, ei-
cans will be treated as “citizen-owners.” a money machine for foreign governments as the This could inject considerable dis- ther through action or inaction (as
Simplicity is one virtue of a flat tax, but the rate is raised over time. comfort, anxiety and uncertainty is true in this case), should not be
into the ISIS ranks. allowed to interfere in the business
economic benefits go beyond that. People would Mr. Carson’s flat tax would generate as much
Bringing their families and com- of a state. Furthermore, he is de-
be encouraged to work more, knowing that the if not more economic growth as any plan intro- munities into the limelight is about fending one of the hallmarks of con-
next dollar they earn won’t be taxed at a higher duced by this year’s candidates. He also de- introducing an important social cost servative tax principles—that the
rate than the last one. This is the insight that serves credit for candor in saying explicitly that for barbaric behavior. Try it and see best tax is one that is applied fairly
informed the Reagan tax revolution and ignited middle-class voters will lose some of their most what happens. The objective is to across the broadest possible base.
the economic boom of the 1980s. prized deductions. We like several other pro- start fighting back against ISIS MATTHEW R . SHAY
Under Mr. Carson’s flat tax, Americans would posals that lower rates in return for fewer de- more effectively, using the very so- President and CEO
be encouraged to invest because there would ductions, but Mr. Carson and Jeb Bush are the cial media it has used with such National Retail Federation
be no more double taxation. Each dollar earned most honest about the trade-offs. success in its global social media- Washington
is taxed only at its source. So once a dollar of Mr. Carson is a presidential long-shot in a driven recruitment campaign.
business profits is taxed, it is not taxed again year when policy proposals don’t seem to count Let’s start exposing as much per- Letters intended for publication should
sonal information about as many be addressed to: The Editor, 1211 Avenue
when distributed to shareholders. Once a for much. But his guiding principle is good
ISIS recruits as we can. The U.S. of the Americas, New York, NY 10036,
worker earns and pays taxes on a dollar in counsel for all candidates. As Mr. Carson ex- should wise up and unleash a tidal or emailed to wsj.ltrs@wsj.com. Please
wages, she is not taxed again for the privilege plains: “My overarching goal for tax policy is wave of such information via the so- include your city and state. All letters
of saving it. Individuals pay no taxes on capital that it should raise revenue—not redistribute cial media we invented. are subject to editing, and unpublished
gains, dividends, interest or death. Businesses wealth, micromanage free citizens or intrude PETER J. BROWN letters can be neither acknowledged nor
returned.
could immediately expense 100% of their capital on privacy.” Amen to that. Truro, Mass.
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. Friday, January 8, 2016 | A11
OPINION
T
Collectively, these institutions are be a beneficiary of low prices, but
he global economy is slip- down $2.9 trillion. instead it is a victim, and potentially
ping into recession. The For a century and a half, the largest a globally systemic one. That’s
evidence is showing up in global corporations and cartels of oil- because the foreign-exchange value
all the usual ways: slowing producing nations have controlled the of the U.S. dollar has surged, as it
output growth, slumping oil market. The years of “secular stag- always does when oil prices fall. After
purchasing-manager indexes, widen- nation” after the Great Recession were substantially revaluing the yuan over
ing credit spreads, declining corpo- mostly good times for them, with a decade in response to protectionist
rate earnings, falling inflation expec- fears of “peak oil” making inflation- threats, China now finds the strong
tations, receding capital investment adjusted prices the highest in history. dollar has left its currency grossly
and rising inventories. But this is a Now thanks to the U.S.-led revolu- uncompetitive with the euro, the yen
most unusual recession—the first tion in fracking, oil is abundant. It will and all the rest. The alarming recent
one ever caused by falling oil prices. be for decades, if not centuries, devaluation of the yuan, while a
We’ve had plenty of recessions because there is shale everywhere in sensible response for China, is creat-
caused by rising oil prices: 1973-75, the world. And unlike the mega- ing strains throughout emerging
1980-81, and 1990-91. In these reces- projects that have dominated the oil economies and deep uncertainty
sions, the oil price ultimately fell as industry over the past several de- through all global supply chains.
demand collapsed. cades, shale can be tapped by smaller Maybe no single one of these oil-
O
as likely to stay poor as you were 50 the country what a true opportunity Washington, D.C., so they could use We need to take the focus in
n Saturday a majority of the years ago. agenda looks like. that money to send their children to Washington off intentions and put it
Republican presidential field The left says these programs pre- Here’s what we believe: By limit- the school of their choice—public, on results. Along those lines,
will meet to discuss fighting vent extreme deprivation, and that’s ing itself, government can actually private or charter. Speaker Ryan has introduced legisla-
poverty at a forum in Columbia, S.C., true. But the federal government is expand opportunity when it gets out Perhaps the greatest education of tion with Sen. Patty Murray (D.,
hosted by the Jack Kemp Founda- not only putting a floor under peo- of the way and paves the road to all occurs on the job. That’s why Wash.) to create a commission on
tion. The two of us will serve as ple’s feet; it is gluing their feet to it. many Republicans have called for evidence-based policy. The federal
moderators. Many programs are means-tested, so strengthening the work requirement government already collects a lot of
The high level of candidate inter- as you make more money you lose Trillions of federal dollars in antipoverty programs and sup- data on its poverty-fighting efforts,
est indicates that our party is not aid. People often use several porting low-income workers by but it doesn’t use it to evaluate
willing to concede this issue to the programs at the same time, so the have been spent, to little increasing the Earned Income Tax progress. The commission would be
Democrats. We expect the candi- benefits drop-off is as subtle as a effect. Let’s focus on jobs, Credit. That first job is the first rung charged with finding a way to make
dates will have their differences, but ski-jump. on the ladder of opportunity. use of this data and report back to
that’s only because they have ideas, Say you’re a single mother with education and opportunity. Both of us have seen firsthand the Congress.
which is more than the other party one child. You’re making the mini- good work being done in our com- Education, work, community,
is offering. What these Republicans mum wage, and you’re on food munities—from the Goodwill in accountability: These conservative
share is a much-needed insight: The stamps, Medicaid, housing assistance collaboration—whether it’s between Greenville, S.C., to Catholic Charities principles will help people learn the
ticket out of poverty is a quality and the Earned Income Tax Credit. If students and teachers, job seekers in Janesville, Wis., to the House of skills they need to earn higher pay.
education and a good paycheck. you take a job that pays $3 more, and employers, or people in need Help City of Hope in Washington, And as more people jump back into
President Lyndon Johnson you’ll keep only 10 cents of every and people who can help. It is D.C. The federal government treats the workforce, the economy will
declared war on poverty in 1964. extra dollar you make, after tax hikes through that free, personal exchange these groups as little more than grow for everyone. We look forward
Since then politicians have won and benefit cuts. In other words, tak- that people learn the skills they need social workers with street cred. to hearing the GOP presidential can-
votes by creating new federal pro- ing a better-paying job is a high-risk, to succeed. But they’re much more than that; didates’ ideas for fighting poverty
grams, without bothering to check low-reward proposition. And there’s no exchange more im- they’re social entrepreneurs. Pre- on Saturday, but one message is
whether they work—because in the This is a problem that demands a portant than education. Everyone cisely because they have credibility, already clear: Democrats want to
political market the currency is solution, but it is only one dynamic knows the difference a good teacher they can get through to people oth- take care of the poor; Republicans
promises, not results. The federal policy makers must confront. And can make. That’s why one of the ers can’t. The federal government want to empower them.
government now runs more than 80 we see Saturday’s forum as our authors here, Sen. Scott, has intro- should assist the people and commu-
different antipoverty programs at a party’s chance to stop carping from duced legislation that would give nities leading these efforts, not Mr. Ryan, a Republican, is a repre-
cost of about $750 billion a year. Yet the cheap seats and to get into the parents more control over their chil- elbow them out of the way. Along sentative from Wisconsin and House
46 million Americans are poor today, driver’s seat. By offering real solu- dren’s education. It would redirect these lines, the other author here, speaker. Mr. Scott, a Republican, is a
and the poverty rate has barely tions, Republicans can define the federal funding to the parents of House Speaker Ryan, has proposed senator from South Carolina.
O
lion in lost productivity. technology officer. These executives individuals who request it with a health coach to manage their high
ne of the greatest challenges Health, happiness and productiv- have become indispensable to expert counseling to deal with an cholesterol and chronic back pain.
corporations face today is ity at work are related outcomes, and employees at most organizations be existing health problem such as dia- Companies also can offer an incen-
ensuring the health and well- companies are in a unique position they technology-based or not. So betes, or to avoid developing one? tive to participate in health screen-
being of their employees. I have an to support all three. But corporate why not create a similar position in Designing the workplace for opti- ings with bonuses like an extra vaca-
uncomplicated solution for achieving wellness programs are either ignored the health sphere? mal health and productiveness. tion day or a company contribution
this: appoint a chief health officer. or resented for being too intrusive. Much in the way a chief technol- Examples might be more-accessible to a flexible spending account.
Health and health-related spend- Nobody wants to be harangued ogy officer focuses on the scientific staircases so more people don’t ride Collecting and analyzing health
ing are a big expense for all compa- by a supervisor about how to drop and technological issues within a elevators, wireless headsets for the data. A study of Duke University’s
nies, and the numbers continue to 20 pounds. Programs designed to company, a chief health officer wellness program in the 1990s
climb. Fully 86% of employees today improve employees’ blood pressure, would be charged with staying showed that it led to better decisions
are above their normal weight or blood sugar, stress management or abreast of the rapid changes in med- Productivity losses from about eating more fruits and vegeta-
have a chronic condition, according cholesterol often annoy employees icine that make it easier to maintain bles, and lowering consumption of
to a Gallup survey a few years ago. more than they motivate, and they a healthy workforce. This would health-related matters sugar-sweetened beverages and fatty
They miss an estimated 450 million don’t have a significant effect on include: cost American businesses foods. The results in some cases
extra days of work a year compared health-care costs. Choosing and managing health could be quantified. Every dollar
with healthy workers, which a recent There’s another way. plans. Many companies are self-in- tens of billions annually. spent on the blood-pressure-lower-
study by the Centers for Disease Consider that with the ascent of sured and can structure their own ing program, for example, saved
Control and Prevention says annually information technology in the 1990s, plans. The key is to design plans $1.21 in health-care costs; every
costs American businesses from $150 many companies adapted and cre- with great benefits that are in sync employees to move around with dollar spent on the cholesterol
with the company’s demographics. while on telephone calls, treadmill programs saved $3.39 A study last
A tech start up where the average desks for those who want them, year in the New England Journal of
age is under 40 should have plans meeting rooms where people can Medicine showed that people who
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY that push prevention, for example, simultaneously exercise or stretch— were essentially paid to quit smok-
because this is when staving off ill- or perhaps lighting and architectural ing, or faced losing money if they
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp ness further down the road is essen- elements to help relieve stress. didn’t, were five times more success-
Gerard Baker William Lewis tial. Companies with older employees Overseeing educational programs. ful than those who given free access
Editor in Chief Chief Executive Officer and Publisher and workers who go to the doctor a These might include free cooking or to standard smoking-cessation tools
Rebecca Blumenstein; Matthew J. Murray, Deputy DOW JONES MANAGEMENT:
lot due to chronic conditions will yoga classes at lunchtime; or counsel- such as behavior-modification and
Editors in Chief; Almar Latour, Executive Editor Anna Sedgley, Chief Financial Officer; need more coverage for those visits ors, coaches and trainers to teach nicotine-replacement therapy.
DEPUTY MANAGING EDITORS: Ashley Huston, Chief Communications Officer; and pharmaceuticals. people how to make healthier food Corporations need to move away
Paul Meller, Chief Technology Officer;
Michael W. Miller, Senior Deputy;
Mark Musgrave, Chief Human Resources Officer;
Premiums for different policies choices, manage stress better or from thinking that health and well-
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, News Operations and Talent; Katie Vanneck-Smith, Chief Customer Officer can also reflect behavioral factors establish an exercise routine. These ness means setting up quiet rooms
Neal Lipschutz, Ethics and Standards; OPERATING EXECUTIVES: that increase or, conversely, de- programs can be done in group set- and discounts at local gyms. Instead,
Alex Martin, Enterprise; Ann Podd, Global Edwin A. Finn, Jr., Barron’s; Edward Roussel, crease certain health risks. Should tings or one-on-one. it means active, on-site leadership
Production; Andrew Regal, Global Head of Video; Innovation; Ingrid Verschuren, Data Strategy;
Jessica Yu, Global Head of Visuals
the nonsmokers, for example, con- Offering rewards and incentives charged by top management with the
Suzi Watford, Marketing;
Paul A. Gigot, Editor of the Editorial Page; Professional Information Business, Sales: tinue to subsidize the health plans when goals are met and commit- mission of maintaining a healthy,
Daniel Henninger, Deputy Editor, Editorial Page Nancy McNeill, Global; William Ashworth, of the smokers? Or should they be ments kept. A new trend in corporate productive workforce.
Americas; Florence Lefevre, Europe; Tomasz credited with lower premiums? America links an employer’s contri-
WALL STREET JOURNAL MANAGEMENT:
Rustowski, Asia
Trevor Fellows, Head of Global Sales; Carrying out health-and-wellness butions to a health plan with an Dr. Agus is a professor of medi-
Chris Collins, Advertising; Christina Komporlis,
Circulation; Jason P. Conti, Legal;
programs that don’t alienate employ- employee’s behavior. Employers are cine and engineering at the Univer-
Joseph B. Vincent, Operations; Larry L. Hoffman, ees. Rather than having weight-loss dangling significant financial contri- sity of Southern California. His latest
Production competitions, for instance, how about butions in front of employees that book, “The Lucky Years: How to
EDITORIAL AND CORPORATE HEADQUARTERS: making it easier to exercise by in- are dependent on certain conditions, Thrive in the Brave New World of
1211 Avenue of the Americas, New York, N.Y., 10036 stalling showers so employees can such whether employees keep their Health,” is out this week from Simon
Telephone 1-800-DOWJONES
freshen up if they bike to work or go blood pressure in check, for example, & Schuster.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Friday, January 8, 2016 * * THE WALL STREET JOURNAL.
WORLD NEWS
bia and Iran, the Shiite com- fond of Iran, a country from the western province of Anbar
munities of the Arab world which he had been expelled. several days ago, Iraq’s joint
are often depicted—particu- His marja’as were Ayatollah operations command said
larly in the Arab media—as Mohammed al-Shirazi, who Thursday.
little more than pawns of the spent more than a decade un- Abu Mohammed al-Adnani
Iranian theocracy. der house arrest in Iran after was wounded when the Iraqi
In reality, the interests of contesting Mr. Khamenei’s air force launched two guided
many of these Arab Shiites, authority, and then Mr. Shi- missiles on an Islamic State
their political outlook and razi’s nephew Ayatollah Mo- hideout near Barwana, outside
even religious beliefs have hammed Taqi al-Modaressi, the city of Haditha, the mili-
long diverged from Iran’s in who left Iran for his native tary said in a statement.
many crucial Demonstrators in Tehran protested this week against Saudi Arabia’s execution of a Shiite cleric. Iraq and opposes Iran’s offi- Mr. Adnani had lost a “large
aspects. cial theology. amount” of blood and been
Some of Shiite-majority country’s many of these communities giances clear by painting por- In his speeches calling for transported to another hide-
these Shiites, Sunni rulers. look to the Iranian regime for traits of Mr. Khamenei on the destruction of the Saudi away near Mosul, Iraq’s sec-
in fact, see protection. So did the rise of their banners and tanks. monarchy, Mr. al-Nemer also ond-largest city and the Sunni
I
little differ- ran’s appeal is particu- Islamic State in Syria and “Only a minority of Shiites advocated the ouster of Muslim extremist group’s
ence between larly limited by the fact Iraq, a Sunni militant group believe in wilayat al-faqih as Syria’s President Bashar al- stronghold in the country, the
Saudi Arabia and Iran, the that the Islamic Republic’s that considers Shiites apos- practiced by Mr. Khamenei. Assad, a member of the Ala- statement said.
two powers in whose battle official ideology of absolute tates. But Iran, as a Shiite state, has wite offshoot of Shiite Islam, Some 15 other senior lead-
for supremacy they are “wilayat al-faqih”—a theo- In Iraq, it is a call by Aya- adopted this practice and is whose survival Iran is desper- ers were killed in an attack in
caught. cratic system in which a Shi- tollah Ali al-Sistani, the most being successful,” said Abdul- ately trying to ensure.
“These two regimes are ite cleric, currently Ayatollah influential of the country’s hadi al Hakim, an Iraqi law- Such a nuanced stand, of
fighting, and I will not accept Ali Khamenei, exercises su- marja’as and an opponent of maker and Islamic scholar course, didn’t prevent Iran Abu
to be pulled into this fight in preme authority—is rejected Iranian-style wilayat al-faqih, close to Mr. Sistani. “The Shi- from appropriating Mr. al- Mohammed al-
which they are using my by most Arab Shiites, who that led to the creation of the ites, who have been op- Nemer as its own symbol af- Adnani has
identity and my sect to serve usually follow other ayatol- so-called Popular Mobiliza- pressed for 1,400 years, see ter the execution. made lengthy
their own goals,” said Ali Ab- lahs as their marja’as, or spir- tion Forces that stopped Is- this success and are im- “Nemer is not from the speeches
dulemam, a Bahraini political itual leaders. lamic State’s advances toward pressed by it. But this is not a pro-Iranian camp. He had his promoting
activist now exiled in London. “The Shiites have always Baghdad and Shiite holy cities religious standpoint, it is a own agenda,” said Toby Islamic State.
“I have my own goal: I want been diverse in their tradi- of Kerbala and Najaf in political standpoint.” Matthiesen, senior research
to be treated as a human in tions, and this continues to be mid-2014. fellow at the Middle East
S
my country and in my re- the case,” said Seyed Ali Fad- Today, however, most of ectarian tensions that Center of St. Antony’s Col- the same region on Thursday,
gion,” added Mr. Abdulemam, lullah, a leading Shiite cleric these militias are under de are reaching new lege at the University of Ox- it added.
a Shiite who was sentenced to in Lebanon. facto Iranian control, thanks heights in the Arab ford and the author of a News of Mr. Adnani’s injury
a long prison term in absentia Yet, intensified political to funding and weapons sup- world may push its Shiite book on Saudi Shiites. “But couldn’t be independently con-
and had his Bahraini citizen- persecution of Shiites, partic- plied by Iran’s Revolutionary communities even further the Iranians now use him, firmed. The military didn’t
ship revoked for his role in ularly in Bahrain and Saudi Guard Corps. They are mak- into Iran’s embrace—long a and have scored a good pro- give details of how he might
the 2011 uprising against the Arabia after 2011, has made ing their ideological alle- strategic objective of the Ira- paganda coup.” have been wounded.
Mr. Adnani, who was born
as Taha Sobhi Falaha in Syria
CITY NEWS A14, A15 | FEEDBACK FRIDAY A16 | HEARD & SCENE A17 | SPORTS A18
What Readers
Are Thinking Boss Is Back
ASSOCIATED PRESS
FEEDBACK FRIDAY | A16 Mets GM returns for Piazza event | A18
WSJ.com/NY * * * * THE WALL STREET JOURNAL. Friday, January 8, 2016 | A13
more than 30 years ago to groups that say civil liberties three civil-rights lawsuits filed
The New York Police Depart- make sure First Amendment shouldn’t be violated in the by activist groups and Mus-
ment must strengthen over- rights aren’t violated during name of security. lims after a series of articles
sight of its surveillance prac- criminal probes. Both the police department in 2011 by the Associated
tices as part of a settlement of The new guidelines include and plaintiffs lauded the set- Press reported that intelli-
two civil-rights lawsuits accus- setting time limits for active tlement for protecting the reli- gence-unit officers infiltrated
ing the force of unfairly moni- investigations and putting in gious and political rights of mosques and student groups
An Uber driver in Brooklyn, above. The New York City Council is toring Muslims after the Sept. writing an existing NYPD pol- people in the city without in New York and New Jersey
drafting legislation to regulate Uber and other for-hire vehicles. 11, 2001, terror attacks. icy that it is illegal to profile hampering the ability of au- in what critics saw as racial
Under the settlement, filed anyone solely on the basis of thorities to conduct terrorism and religious profiling.
Council Bypasses
in federal court Thursday, the race or religion. The agree- investigations. Please see POLICE page A14
police department agreed to ment also requires the NYPD “We hope the NYPD’s re-
changes that include reinstat- to remove a controversial re- forms help make clear that ef- New watchdog for NYPD is
ing an independent attorney to port on radicalization that has fective policing can and must
Mayor’s Office
the latest in a string........... A14
five times more meeting views of the Hudson River. official said that other public
space. A four-level, 480,000- and private financing options
“It’s now our obligation to square-foot garage capable of are also under consideration.
build a New York for the next housing hundreds of tractor- Union leaders welcomed the
generation,” said Mr. Cuomo, trailers also has been pro- news. Gary LaBarbera, presi- 7:30 p.m. Friday
who has been traveling across posed, potentially removing dent of the Building and Con- Magic @ Nets
the state this week, announc- trucks from the area’s streets struction Trades Council of
A proposed expansion, shown in the rendering above, would add ing ambitious projects on his and improving pedestrian Greater New York, said the plan
about 1.2 million square feet to the convention center’s north side. 2016 agenda. safety. Please see JAVITS page A14 For N.Y. sports coverage, see A18
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Friday, January 8, 2016 * *** THE WALL STREET JOURNAL.
CITY NEWS
Pioneering Judge
Judith Kaye Dies
BY ASHBY JONES running campaign to increase
pay for the state’s judges. Ms.
Judith Kaye, the first Kaye’s tenure as chief judge
woman to serve as the chief began in 1993, after she served
judge of New York’s highest for a decade as an associate
court, has died at age 77. judge on the Court of Appeals.
Ms. Kaye died overnight, One of Ms. Kaye’s most
according to a statement by memorable judicial rulings
Eugene F. Pigott, the acting came in a 2006 dissent in a
chief judge of the New York lawsuit brought by same-sex
Court of Appeals. couples seeking the right to
marry. Ms. Kaye’s lengthy and
impassioned dissent antici-
‘She wrote the script pated many of the arguments
for a modern day that advocates of same-sex
BOUTIQUE
New York 5th Ave
New NYPD Watchdog Is the Third Since 2014
BY PERVAIZ SHALLWANI eliminated after the NYPD have factual information point- olations of the agreement.”
sought more flexibility to ing to unlawful activity. This is the third monitor
NEW Full frame camera The civilian attorney who probe threats in the wake of The attorney must inform tapped to scrutinize the de-
will act as a watchdog over the the terror attacks on Sept. 11, the police commissioner, mayor partment in recent years.
New York Police Department’s 2001. or judge in case of violations. The New York City Council
intelligence investigations un- Mayor Bill de Blasio will ap- NYPD officials said they wel- enacted legislation to create
der Thursday’s settlement is point the attorney in consulta- comed the oversight. “I believe the position of inspector gen-
the latest outside oversight of tion with Police Commissioner the adding of this independent eral in 2014, a post that has
the agency. William Bratton, according to civilian representation…actu- subpoena power to investigate
The agreement, which would the guidelines, and this person ally takes us to a place where officers’ conduct and depart-
put to rest two lawsuits re- will observe monthly meetings you don’t have to take our ment policies.
garding the department’s sur- of counterterrorism officials. word for it,” said John Miller, In 2013, a judge appointed a
veillance of Muslims, reintro- The appointee is charged deputy commissioner of intelli- federal monitor following a
A vision duces a civilian representative with ensuring investigations gence and counterterrorism. trial in which the NYPD was
of the future who will oversee investigations follow safeguards, including There is a person who sits in found to have used stop-and-
involving political or religious not basing inquiries solely on this process who can be relied frisk to discriminate against
Leica SL (Typ 601) activities. The post had been race or religion and instead upon to report any systemic vi- minorities.
JAVITS
Continued from page A13
“will create thousands of good
SALE
construction jobs and stimulate
the economy decades into the
MARK ABRAMSON FOR THE WALL STREET JOURNAL
future.”
The once-industrial Far West
Side is rapidly changing with
projects such as Hudson Yards,
slated to bring more than 17
million square feet of office, re-
on showroom beds
AVAILABLE 01 JANUARY – 16 FEBRUARY 2016
place around the convention
center has increased the value
of its land, noted Christopher
Jones, vice president for re-
Hästens manufactures perfect sleep – by hand search at the Regional Plan As-
in Sweden, using pure natural materials that breathe, sociation, an urban research The Jacob J. Javits Convention Center is expected to begin a $1 billion expansion later this year.
to keep you warm through the winter nights. Discover and advocacy organization. He
the magic of genuine Hästens sleep. suggested that officials explore cation for a large convention near John F. Kennedy Interna- space, said Henry Silverman,
selling the Far West Side prop- center in New York City be- tional Airport; negotiations board chairman of the New
erty and using the proceeds to cause the area is much more with the casino operator col- York Convention Center Devel-
hastens.com build on other sites, such as the residential than it used to be,” lapsed in 2012. opment Corp., which owns the
railyards in Queens’ Sunnyside Mr. Jones said. The planned expansion Javits Center.
area. Sunnyside would present its would help address long-run- Remember, the building
“We still have the question own challenges, since the ning complaints that the con- went up years ago, Mr. Silver-
of whether this is the right lo- neighborhood is home to work vention center, which opened in man said. “The times are
related to extensive transporta- 1986, isn’t the world-class changing.”
CITY NEWS
Debate Raising
Smoking Age
BY KATE KING Karen Blumenfeld, execu-
tive director of the anti-to-
New Jersey could become bacco nonprofit Global Advi-
the second state in the coun- sors on Smokefree Policy,
try to raise the legal age to said increasing the legal
purchase cigarettes and other smoking age would prevent
tobacco products to 21, with a young people from picking up
bill expected to head to the the habit.
governor’s desk as early as “It’s been proven time and
next week. time again that when tobacco
A state Assembly commit- access is reduced, then smok-
tee voted Thursday to approve ing initiation rates also decline
the bill, which is expected to as well as smoking,” Ms. Blu-
pass the full Assembly on menfeld said.
Monday. The Senate approved Sal Risalvato, executive di-
the measure in June 2014. rector of the New Jersey Gaso-
The legal age for smoking line, C-Store and Automotive
in New Jersey is currently 19. Association, an industry advo-
On New Year’s Day, Hawaii be- cate, said the bill was “feel-
came the first state in the na- good legislation” that would
tion to raise the minimum just send young people to the
SHANNON STAPLETON/REUTERS
smoking age to 21. Dozens of Internet, older friends or
cities nationwide have set 21 across state borders to pur-
as the legal smoking age, in- chase tobacco products.
cluding New York City. “The legal age is 19 right
It was unclear Thursday now, yet there are plenty of
whether New Jersey Gov. people under the age of 19
Chris Christie, who is running who smoke,” he said. “So
for the Republican presidential where are they getting their
nomination, supports the bill. cigarettes?” HOPING TO BEAT THE ODDS: A Times Square vendor was doing brisk business Thursday in Powerball tickets as the jackpot for the
A spokeswoman for Mr. Mr. Risalvato and Mary El- multistate lottery’s Saturday night drawing swelled to $700 million. Ticket holders have a one-in-292.2 million chance of winning.
Christie said the governor len Peppard of the New Jersey
doesn’t comment on pending Food Council, a retail advo-
legislation and would review cacy group, said raising the le-
tients will wait for service marijuana only in capsules, ries. Each company also has a excites us most is the privilege
amid scattered plants and liquids or oils—not in smok- manufacturing facility, which of serving the people of this
iPads at the city’s first medical able or edible form. are spread throughout the community,” Michael Abbott,
marijuana dispensary. New York state’s program state. Columbia Care’s facility executive chairman of Colum-
The dispensary, run by Co- allows for the treatment only is in Rochester, N.Y., in a for- bia Care, said in an email.
lumbia Care LLC, opened of specific conditions, which mer location of Eastman A handful of elected offi-
Thursday as part of the launch include cancer, HIV/AIDS, Par- Kodak Co. cials and others gathered
of the state’s medical mari- kinson’s disease, multiple About 150 doctors in New Thursday to mark the opening
juana program. The program sclerosis and inflammatory York have registered for the of the city’s first medical mar-
was ushered in by legislation bowel disease. The state is program, the health depart- ijuana dispensary.
signed in July 2014 by New evaluating adding other con- ment said, and 51 patients “I’m really excited about
York Gov. Andrew Cuomo. ditions, including Alzheimer’s have been certified by their this because people’s health
Of the 20 dispensaries the disease, post-traumatic stress doctors to get the marijuana. care will be improved,” said
Columbia Care executive Joshua Bell and pharmacist Emily state is now allowing, eight of disorder and rheumatoid ar- In New York City, three Gale Brewer, the Manhattan
Hoffnagle in Manhattan’s first medical-marijuana dispensary. them, including the one in thritis, according to the more dispensaries are borough president.
FEEDBACK FRIDAY
Now, Let’s Play Ball
Different Takes: Serving the Public Chris Christie’s governing
New Jersey from New
Hampshire is like Joe Gi-
Circumcision Policy Puts thousands of children in rardi managing the New
Jewish Infants at Risk the dark. York Yankees while looking
As an Orthodox Jew, I Len Fasano for a new job in another city
am furious and ashamed Connecticut and watching them on tele-
of the unholy alliance be- Senate Minority Leader vision. (“Christie Absences
tween New York City North Haven, Conn. Go Noticed,” Jan. 4).
Mayor Bill de Blasio and Christopher M. Holleran
Orthodox lobbyists, espe- Rancor Hurts Syracuse Fresno, Calif.
cially with regard to the In response to the Dec.
mayor’s circumcision pol- 26 article “Two Upstate Gambling for the Arts?
icy (“Orthodox and de Officials Clash” about the I wasn’t surprised to read
Blasio Are In Step,” Jan. dispute between Syracuse that the food and drinks
2). The circumcision rit- Mayor Stephanie Miner concessions at Broadway
ual the lobbyists success- and Onondaga County Ex- theaters are profit centers
fully promoted is called ecutive Joanie Mahoney, it for management who are
metzitzah b’peh, direct must be noted that this usually partners with the
oral suctioning following rift is just one of many hospitality companies that
circumcision or MBP. disputes initiated by the provide the service (“The-
Based on erroneous mayor to the detriment of ater Bars Are Smash Hit on
ancient medicine, the Tal- our community. Broadway.” Dec. 29). Let’s
mud required suction, As one of the longest- just hope that the consump-
though not explicitly by serving women on the Syr- tion of food and drinks re-
mouth. In the 19th cen- acuse Common Council, I mains optional and doesn’t
tury, after outbreaks of have seen this pattern of evolve into a “cover charge.”
disease were linked to behavior by the mayor, The Metropolitan Opera
MBP, prominent Orthodox taking a combative rather should go further and con-
rabbis allowed more sani- than a collaborative ap- sider the practice used in
tary means of suctioning proach to policy-making. I Teatro di San Carlo in 19th-
and others discontinued have seen too many eco- century Naples: introducing
the practice altogether. nomic development oppor- casino-like gambling in the
Some ultra-Orthodox tunities quashed by Mayor house, which is described in
Jews continue to practice Miner based on her per- Philip Eisenbeiss’s delightful
MBP, even after babies sonal animosities. It is dis- book “Bel Canto Bully: The
have died from herpes heartening to see Mayor Life and Times of the Leg-
transmitted by infected Miner blocking projects endary Opera Impresario
mohels. that could transform the Domenico Barbaja” (Haus
Mayor Bloomberg re- city of Syracuse. It is trou- Publishing, 2013). It appears
quired informed consent bling to see her rebuff the that in light of changes in-
of parents by the minor- strong city-county part- troduced into the New York
ity of mohels who insist nership that has developed state Constitution engi-
on MBP. By revoking that with the Mahoney admin- neered by Gov. Andrew
policy in return for the istration. Even opportuni- Cuomo, seven Las Vegas-
ultra-Orthodox vote, ties to stand together with style casinos are now per-
Mayor de Blasio has fellow Democrats on the mitted to open in the state.
placed infants at greater Common Council for the This could be a long-term
risk for possibly fatal dis- greater good of the city solution to the Met’s chronic
ease. have been rejected. financial problems that
David S. Zinberg To create opportuni- would keep this equally im-
Teaneck, N.J. (“Malloy Wants 21 as Mini- sive use of unlawful re- In addition, the agency’s ties, to address the issues portant art form alive.
mum Age for Adult Trials,” straints and frequent cases misguided policies of keep- of poverty and unemploy- Ira Sohn
A Juvenile Justice Test Dec. 29). of self-injury and suicide at- ing kids in unsafe homes in ment, city leadership must Upper Montclair, N.J.
Gov. Dannel Malloy Before the governor em- tempts on their watch. order to show fewer out-of- set aside personal differ-
wants Connecticut to be barks on a new crusade, The governor’s promise home placements has re- ences and focus on the big Letters intended for publica-
the first state in the na- Connecticut should be bet- to close this facility in the sulted in tragic, preventable picture. Mayor Miner must tion in the Greater New York
tion to raise the mini- ter protecting the children distant future without ex- child deaths. recognize that constantly section of The Wall Street
mum age to try a defen- already in its care. tensive corrective measures Being the first state in fighting is no way to move Journal should be sent to:
dant in adult criminal The juvenile justice facil- in place now to stop the the nation to “raise the age” our city forward. gnyltrs@wsj.com. Please in-
court to age 21, thereby ity run by the state’s De- outrageous conduct is sim- to 21 would certainly Kathleen Joy clude contact information, in-
shielding more young partment of Children and ply an effort to divert criti- heighten Gov. Malloy’s na- Syracuse Common cluding your address and
phone number. Letters should
people from the adult Families has been investi- cism, not pursue real tional image, but his pursuit Councilor-at-Large be a maximum of 300 words,
criminal-justice system gated for child abuse, exces- change. of the limelight still leaves Syracuse, N.Y. and are subject to editing.
A public service message from the U.S. Department of Housing and Urban Development in partnership with the National Fair Housing Alliance. The federal Fair Housing Act SCAN HERE FOR
prohibits discrimination because of race, color, religion, national origin, sex, familial status or disability. For more information, visit www.hud.gov/fairhousing. MORE INFO
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THE WALL STREET JOURNAL. * * * * Friday, January 8, 2016 | A17
Caleb Hammons, Niegel Smith, Michael Silverstone and another guest at the opening night the Public Theater’s Under the Radar Festival,
above. John Leguizamo, below left, and Gabriel Kahane, below center. The interface of TRN, an app and a website, below right.
L
aurie Anderson, Denis
O’Hare, David Byrne,
singer-songwriter Ga- Lemon Andersen, Elise Thoron and Andrew Kircher, top. Patrick
briel Kahane and John Le- Willingham, Mark Russell, Meiyin Wang and Oskar Eustis, above.
guizamo were just some of
the guests at a performance “Busy people often can’t and can happen at home, of-
of “Germinal” on Wednesday, think more than three hours fice or outside. Membership
PAUL ZIMMERMAN/WIREIMAGE/GETTY IMAGES (2)
which served as the opening ahead in their schedule,” ex- is free, and right now about
night of the Public Theater’s plained Mr. Peters. In the 230 members are using the
Under the Ra- world of personal training, service, Mr. Peters said.
dar Festival. “a lot of the business we One of the hardest parts
“There’s no lose is because logistics be- of building TRN has been the
better way to come a problem. But when a technology, added Mr. Pe-
start 2016,” trainer is coming to you, the ters, who started as one of
said Oskar Eu- outcome is much better.” Mr. Manocchia’s clients in
MARSHALL stis, the artis- Mr. Peters had the idea in 2003.
HEYMAN tic director of the spring of 2013 when a “As quickly as it gets
the Public, as friend, who had taken an built, it also changes,” he ex-
he jumped up Uber car to meet him for plained. “We have to keep
TRN
on the bar in the lobby of dinner, complained about not innovating to make it even
the theater. Under the Radar being able to find a trainer easier to use.”
Co-Directors Mark Russell “Germinal” reminded him of nal” runs around an hour back in shape. It can’t be at the hotel where she was Eventually, Messrs. Peters
and Meiyin Wang soon fol- the kind of subversive the- and 20.) done with just the click of staying. and Manocchia hope to ex-
lowed him up there. ater he saw “back in the Somehow, today, “we’ve the button, but with a new As of this week, TRN has pand TRN to Miami, Chicago,
Mr. Leguizamo was espe- day” when he was on the lost weird,” he added. But app two trainers are hoping a stable of over 100 trainers San Francisco and other
cially excited about the off-Broadway alternative “Germinal” gave him confi- it can begin with one. in yoga, Pilates, personal “walking cities,” as well as
piece—even leading a stand- scene. He rattled off names dence, he said, in the poten- Pat Manocchia, the training and swimming, and into health areas like medita-
ing ovation—by French and like Karen Finley and Mabou tial for nonlinear work, espe- founder of La Palestra Cen- offers access to them from 5 tion and nutrition.
Belgian artists Halory Go- Mines. cially when it comes to his ter for Preventative Medicine a.m. to 11 p.m. Users create a “Fitness has become so
erger and Antoine Defoort in “You would walk into all new project “Latin History who has trained Madonna, profile—including, among much more about entertain-
which four performers con- these small East Village liv- for Dummies.” Howard Stern and Jerry other things, goals, exercise ment,” Mr. Peters said, of
struct the world from just a ing rooms and see something “Concepts can be theatri- Seinfeld, and his protégé, preferences and sleep pat- how the workout world has
few props on stage, includ- for five minutes and it would cal,” Mr. Leguizamo said. Greg Peters, have just terns—and the app also ar- changed in Manhattan over
ing a microphone, sound- be a lot of crazy,” Mr. Le- launched TRN, an app and a chives all of their workouts the last decade. “You’re
T
boards, a guitar, a pick ax guizamo explained. “It was here’s no time like the website that provides access so they can be repeated solo sweating, but you don’t
and packing peanuts. always great because it was first week of January to fitness trainers within an or taken on the road. know what you’re doing it
Mr. Leguizamo explained only five minutes.” (“Germi- to start trying to get hour in New York. Sessions are $125 an hour for.”
ART
mated to sell for at least higher wild-card factor be- $35,300 in 2015 from $16,100 their lower price points ap- also part of a longer plan to
$9,200. cause their prices are bal- in 2012. peal to established Picasso spare her children the burden
Much of the pottery dates looning now even as prices A blockbuster exhibit of Pi- collectors and novice buyers of trying to settle her vast es-
between the late 1940s, when for nearly everything else in casso sculpture currently on alike. The former seek deco- tate without her.
Continued from page A13 the artist started experiment- the market are starting to view at the Museum of Mod- rative companions to their The daughter of the artist’s
sale highlights. The combined ing with the medium, to the ern Art could further goose paintings and sculptures, she eldest son Paulo, she grew up
estimate for the group is mid-1960s when he began said, while the latter seek an distant from her grandfather
$10.5 million to $14.8 million. working more in bronze. Yet affordable, authentic Picasso. and was only 25 years old
Last February, a collector the works on paper Ms. Pi- At a March 2015 sale of Pi- when she inherited roughly
paid Sotheby’s $1.9 million casso is selling run the en- casso ceramics, Ms. Newman 10,000 pieces from his estate
for a foot-tall terra-cotta owl tire sweep of her grandfa- said bidders hailed from 17 in 1975.
figure the artist created in ther’s career—from his early countries including Slovenia, Initially, she was at a loss
1953 while staying in the days in Spain before he found India and New Zealand, and about what to do with the
town of Vallauris along fame in Paris to his later 62% of the winners were trove. For decades, she kept
France’s southeastern coast. preparatory drawings for his first-timers within the Pi- stacks of his ceramics in stor-
The work, which set the re- marquee paintings. casso ceramic market. age. “I hung up a few of his
cord for a Picasso ceramic, Some of these carry start- Sotheby’s efforts to paintings, but I couldn’t dis-
was only expected to sell for ing estimates as high as champion Picasso’s ce- play everything in my house,”
a third as much. $269,000, as is the case for a ramics are also paying she said. “It’s too much.”
In June, Sotheby’s sold a 1962 paper cutout figure of a off in its competition Over the years, she orga-
group of 126 ceramics from woman’s face that presages with rival Christie’s, nized a few traveling exhibits
the collection of Ms. Picasso his sheet-metal sculptures of which sold his priciest of her ceramics with dealers
for $2.1 million—nearly dou- “Sylvette,” a young woman he painting, the $179 million like Jan Krugier and sold
bling its presale estimate met in the mid-1950s in Val- “Women of Algiers (Version pieces here and there. Last
with every piece finding a lauris, who became the sub- O),” last May. year, she said she was plan-
buyer, a rarity among auc- ject of several dozen of his The Picasso dogfight ning to sell her holdings pri-
SOTHEBY’S (4)
C RA F T I NG E T E R N I T Y S I N C E 1 755
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A18 | Friday, January 8, 2016 * * THE WALL STREET JOURNAL.
SPORTS
Alderson Returns to Champion Mets’ Future
Cancer-stricken GM cial situation, disputing the no-
tion that they have been driven
attends Hall of Fame by austerity. He noted that at
event for Piazza, talks the end of the 2014 season, the
Mets had a payroll of around
baseball and money $85 million. He expects to have
a payroll between $115 million
BY JARED DIAMOND and $120 million in 2016—still
small for New York, but, he ar-
Sandy Alderson was linger- gued, a substantial increase
ing with a couple of reporters nonetheless.
on the ninth floor of the New “The idea that we’re not in-
York Athletic Club on Thurs- vesting in the team I think is
day, waiting for the rest of the really misplaced and sort of
media horde to arrive. In the tied up in the populism involv-
next room, former Mets ing Cespedes,” Alderson said.
catcher Mike Piazza had just He left the door open for
wrapped up a news conference Cespedes or another signifi-
to mark his election to base- cant addition before the Mets
ball’s Hall of Fame, and Alder- report to spring training in
son had come with the rest of February.
the team’s brass to show his To this point, they have re-
support. lied on shorter-term fixes: They
After a few minutes of awk- replaced Murphy at second
ward feet-shuffling and idle base by trading pitcher Jon
chatter, a reporter wondered Niese to the Pittsburgh Pirates
aloud if it was acceptable to for Neil Walker. They inked
commence with the question- shortstop Asdrubal Cabrera to
ing, so as not to keep Alderson a two-year $18.5 million con-
standing around for too long.
‘The idea that we’re tract, shifting Wilmer Flores
Alderson gave the go-ahead not investing in the into a valuable utility role.
as a sly smile crept across his Then they brought in outfielder
face. Otherwise, he said, “You
team I think is Alejandro De Aza on a one-
never know what might hap- really misplaced.’ year, $5.75 million deal.
pen.” These moves weren’t espe-
This was Sandy Alderson, cially flashy—and they cer-
the Mets’ 68-year old general tainly won’t offset the loss of
manager who a month ago be- Cespedes—but they should
gan treatment for cancer, re-
turning to normalcy. The last
Piazza Will Go to Hall as a Met help. Additionally, the Mets
still intend to find at least one
time he was in this kind of Mike Piazza is enter- more arm for their bullpen, as
setting, surrounded by report- ing the Hall of Fame as well as another outfielder.
ers on Nov. 4 to discuss the a New York Met. The question now is
Mets’ off-season plans, he had At a news confer- whether that outfielder is a
collapsed to the ground under ence Thursday, Piazza backup piece—or somebody
the hot television lights, a said that he will be the more substantial.
frightening ordeal that pre- second player ever to “It’s not as if we’re not
ceded his diagnosis. don a Mets cap in Coo- looking to improve the team,
On Thursday, as is his way, perstown, joining and if possible in significant
he laughed about it. pitcher Tom Seaver. ways,” Alderson said. “But it
In his first public appear- Piazza broke into the has to make some sense in
ance since his fainting episode, major leagues with the terms of how these pieces all
Alderson looked and sounded Los Angeles Dodgers fit.”
like his old self. He cracked and put up his best sta- Meanwhile, he said the
jokes at his own expense, fero- tistics there, batting Mets will almost definitely
ciously defended the Mets’ .331 in parts of seven stay in-house to find a re-
spending habits this winter and seasons. But he is most placement for Paul DePodesta,
generally expressed optimism known for his eight their player development chief
about the chances of defending years with the Mets, particularly the game-winning home run who this week took a top
their National League pennant. he hit on Sept. 21, 2001—the first major sporting event in New front-office position with the
More important, he made it York City after the 9/11 terrorist attacks. NFL’s Cleveland Browns.
abundantly clear that he “I feel like the fans here truly brought me into their family,” Because DePodesta did so
wanted to talk about his team’s Piazza said. “Every time I’ve come back, I’ve been so incredibly much within the organization,
health, not his own. honored from the response. Unfortunately, we do have to from scouting to analytics, Al-
Alderson said he has been choose one. And, for me, I always enjoyed reconnecting here in derson said the Mets will likely
working mostly regular hours New York.” —JD appoint multiple people al-
in the office since just after ready with the team to handle
last month’s winter meetings. different aspects of his job.
He wanted to attend those Mets general manager Sandy Alderson, top, was an unexpected guest at the New York Athletic Club on Thursday, where ex-Met Mike “Losing Paul was tough,
meetings in Nashville, but his Piazza and Ken Griffey Jr., pictured above in the 1998 All-Star Game, were honored for their election into baseball’s Hall of Fame. both professionally and per-
doctor advised him not to sonally,” said Alderson, who
travel so close to his first would be for anybody—getting not just of returning to the have to do it without free- signed, but a reunion at this had worked with DePodesta
round of treatment. back to work and being active World Series, but winning it. agent outfielder Yoenis Ces- point seems unlikely; the Mets dating back to his days with
“I’m very much encour- and getting back to a more He will have to do it without pedes, a 2015 trade-deadline are uncomfortable giving a the San Diego Padres nearly a
aged,” Alderson said. “Every- normal existence.” postseason hero Daniel Mur- acquisition whose remarkable player his age the long-term decade ago. “He was instru-
thing’s been fine to this point. With that, Alderson turned phy, who signed a three-year performance in August and deal he will probably com- mental in what we’ve been
Getting better. It’s nice to be his attention to baseball and contract with the division-rival September propelled the Mets mand. able to do here over the last
back to a routine and working the difficult task at hand: put- Washington Nationals earlier into the playoffs. Alderson went on the offen- five years in many ways, some
toward the 2016 season, as it ting together a roster capable this week. He will likely also Cespedes, 30, is still un- sive regarding the Mets’ finan- more public than others.”
FEATURE (CLOCKWISE FROM TOP): KATHY WILLENS/ASSOCIATED PRESS; KATHY WILLENS/ASSOCIATED PRESS; JEFF HAYNES/AFP/GETTY IMAGES; TAN: HANS DERYK/ASSOCIATED PRESS; HOF: EVAN PINKUS/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
WSJ.D B5 | CROSSWORD B6
the two pillars of the com- prices soared have already A prolonged rout could be
pany’s recent success: the slashed tens of thousands of part of a shift in world-wide
iPhone and China. jobs and mothballed billions of market dynamics. Chinese com-
The Cupertino, Calif., com- dollars of projects. Now they modity demand that long
pany’s 4.2% drop on the day must search for new savings buoyed prices is now flagging,
was greater than the overall as their long-held hopes of re- and over the past year the Or-
market’s slide and the 3% bounding commodity prices ganization of the Petroleum Ex-
slump in the Nasdaq Compos- fizzle on weak Chinese de- porting Countries has aban-
ite, which closed down 10% mand. doned its traditional role of
from its May peak. Since early Mining companies “are still Miners are under pressure as Chinese iron-ore consumption and steel production are weakening. stabilizing oil prices, instead
December, Apple has shed reacting to the reality that feeding a supply glut in compe-
$100 billion in market value. China did not turn out to be Glencore PLC and Anglo world’s biggest miner, BHP Bil- Oil companies went through tition with U.S. shale producers.
Signs of weakness in the the picture of ever increasing American PLC have slashed liton Ltd., is facing similar a big boom cycle over the last Other oil producers have
iPhone, its best-selling and demand people thought,” Lou- their dividends—a step big pressures as iron-ore prices decade, but they are now “in also continued heavy pumping,
most profitable product, come renco Goncalves, chief execu- companies are loath to take drop and as it contends with another one that’s going to be in some cases to pay down
after new, larger-screen mod- tive of Cleveland-based iron- for fear of alienating big the fallout from a deadly down for a while,” BP PLC debt or support government
els propelled Apple to record ore miner Cliffs Natural shareholders—after stock mine-dam breach in Brazil last Chief Executive Bob Dudley spending, even though it
results in its fiscal year ended Resources Inc., said in an in- prices plummeted over cash- year. A BHP spokeswoman de- told the BBC in an interview means further driving down
Sept. 26. Buoyed by China’s terview Thursday. flow and debt concerns. The clined to comment. aired over the weekend. A BP Please see CUTS page B2
rising middle class, Apple’s
Greater China sales in that pe-
A
Airbus Group...............B4
Air France ................... A7
Freeport McMoran......B2
G
Neuberger Berman......C4
Noble Group ................ C2
Nordstrom...................B2
CUTS
Gap .............................. B1
Amazon.com.....B1,B2,B6 P
Continued from the prior page
General Motors......B3,C8 oil prices.
Anglo American..........B1 Gilt Groupe..................B2 Panasonic....................B3 After putting off more than
Anheuser-Busch InBev Glencore ...................... B1 Pandora ....................... B3 $200 billion in oil projects last
.....................................B3 year, big energy companies
Goldman Sachs Group C1 R
Apple......................B1,B5 may not ramp up spending
Google ......................... B6 Rio Tinto ..................... B2
B Green Bay Packers ..... D8 when prices rebound, Bern-
Royal Dutch Shell.......B2 stein Research said this week.
Best Buy................B2,B4 Greenbrier...................B3
S “Oil company spending will
Boeing ......................... B4 H
Sears Holdings............B4 remain capped even if oil
BP................................B1 prices rise,” Bernstein analysts
MICHAEL NAGLE/BLOOMBERG
Henderson Global SoftBank Group..........B5
C Investors...................C4 wrote. The normal link that
Starwood Hotels &
Campbell Soup............A3 Hudson's Bay..............B2 sees spending rise with oil
Resorts Worldwide .. B4
prices may be “broken,” they
Chevron ....................... B2 I Suitable Technologies B5
said, after big companies that
Citigroup.................C1,C2 Supervalu....................B3
Intel.............................B5 outspent their cash flow even
Cowen and...................B6
International Business T when oil prices were triple to-
CVS Health..................B2 Machines...................B5 day’s value enter a new period
Target..........................B2
D J Walgreens Boots Alliance’s CEO says he is looking to sell high-end cosmetics to boost profit. of frugality.
Tesla Motors..........B3,C8
Deutsche Post.............B6 The industry’s troubles will
J.C. Penney..................B2 Time Warner...............B6
commerce sales in November cer Richard Galanti warned $41 lamps and a DVD of the Mumford, a fund manager
and December likely rose that the still-unpredictable Mark Wahlberg movie “Invin- with Cavendish Asset Manage-
about 13% to $69 billion, ac- millennial lifestyle habits pose cible” for her father. In total ment whose funds hold shares
cording to preliminary esti- challenges. “When people talk she spent $250 on Christmas of oil and mining companies.
mates from the Internet ana- about millennials, I think the purchases at only two places: He is also bearish on small
lytics company. That’s shy of good news is we’re getting Victoria’s Secret and Ama- mining companies, many of
its forecast of a 14% increase. more of them,” he said last zon.com. which may end up with cash-
The shortfall came as more month. “Millennials are going
‘We’re sort of like that show, ‘2 Broke Ms. Robards reused an old flow problems if prospects
shoppers switched to mobile to be an issue for the total pie Girls’,’ says Brittany Robards, at right, trick: briefly signing up for a don’t improve soon. Already,
commerce, where the value of in general—if people move trial Amazon Prime account to larger mining companies have
purchases tend to be lower. home after college for a period
referring to herself and Alex Haigh. use the free two-day shipping responded to falling prices
“The two biggest growth of time, if they move into a option. “I don’t know why they with layoffs and temporary
areas in retailing today are on- smaller place, if they get mar- let me do it again, since I did it closures of projects like a
line and off-price,” said Jerry ried later, if they have fewer rescue cats. she can’t keep up with the ris- two years ago,” she said, Glencore mine in Zambia.
Storch, chief executive of Saks kids, it’s going to rain on all of “We’re sort of like that ing cost of living in her home- laughing. Amazon didn’t re- One key to survival for
Fifth Avenue and Lord & Tay- us.” show, ‘2 Broke Girls,’” Ms. Ro- town. Portland’s median cost spond to requests for com- smaller mining companies,
lor parent Hudson’s Bay Co. Americans under age 35 bards said, referring to a sit- of rent rose 20% from 2009 to ment. says Ignacio Salazar, the
His company reached a deal form the largest age demo- com on CBS. “We don’t have a 2014, above the national aver- Ms. Haigh’s Christmas aus- Chile-based chief executive of
Thursday to buy Gilt Groupe graphic of the U.S. workforce, horse, but my cat is deaf, and age, and it is growing at the terity pledge was foiled. Nor- small, Toronto-listed Orosur
Inc. for $250 million. It plans according to the Pew Research Alex’s has three legs.” sixth-fastest rate among major mally paid on Fridays, she got Mining Inc., is to avoid taking
to combine the flash-sale site Center, though their individual Ms. Robards, 29, works as U.S. metro areas, according to her $920 weekly paycheck on on high-risk debt now that
with its Saks Off 5th discount earning power is still growing. an assistant at a local mort- the National Association of Re- Christmas Eve—a Thursday— “the market is not very favor-
chain, as previously reported More than 60% of millennials gage lender and brings home altors. “All of a sudden Oregon and found herself unexpect- able.”
by The Wall Street Journal. who are employed full-time, about $2,400 a month, de- has gotten really popular,” she edly flush the night she drove Phoenix-based Freeport-Mc-
Most sales are still made at year-round make less than the pending on commission. She said. to central Oregon to visit rela- MoRan, one of the world’s big-
physical stores. Some 91% of U.S. median income of estimates that her monthly ex- To cut down on expenses, tives. Taking a quick detour to gest copper miners, is in sur-
shoppers made a purchase at a $46,480, according to data penses—including rent, car Ms. Robards, a die-hard Green Nordstrom Rack, she picked up vival mode, shutting down
brick-and-mortar store this from the U.S. Census Bureau. loan payments, phone bill, gro- Bay Packers fan, only pays for some dress socks for her fa- mines, laying off workers, and
holiday season, according to a Ms. Haigh moved in with ceries and other utilities—total cable during the football and ther and a few other assorted putting its oil and gas division
survey by the International her high school friend Brittany about $1,500. At the same basketball seasons. Her room- gifts, spending $75. on the block, but says it has
Council of Shopping Centers. Robards three years ago, seek- time, she is trying to save mate, Ms. Haigh, doesn’t up- But when her dad presented enough confidence in the long-
The primary reason for going ing to save on rent so that $500 a month to eventually grade her gadgets. “I have a her with a diamond bracelet, term copper market to keep
to a store was the ability to they could more easily afford buy her own place, while also TV that I’ve had for five years, she was sheepish. “I was sort running its biggest, lowest-
see, touch and try on the mer- occasional splurges, like a re- paying down more than $2,000 and I’ll have it until it breaks,” of like, ‘aw, here’s your socks,’” cost mines. Activist investor
chandise, the survey said. cent trip to Hawaii. They also in credit-card debt. she said. Both women said she said. “I’m glad I ended up Carl Icahn, who disclosed an
Macy’s blamed unseason- share other expenses, like car- Even though her wages travel is their priority. This having the money to get them 8.5% stake in August, forced
ably warm weather, which ing for their two special-needs have grown, Ms. Robards says fall, they jumped on a $400 something.” out longtime chairman James
sapped demand for coats and R. Moffett in December, and
winter gear, for much of its could push for even more ag-
sales declines. On Thursday, Largest share of online sales gressive changes.
the Japanese owner of the
In the Cart Big oil companies have sig-
Uniqlo chain of fast-fashion Amazon dominated naled cutbacks. They have
stores, Fast Retailing Co., also online sales for 42.7% backed out of big projects like
blamed warm weather for an November and a Shell development in Canada
11.9% drop in December same- December, based on Next 10 retailers to mine petroleum from oil
store sales. But J.C. Penney e-mail receipts sent sands. The oil industry laid off
Co. reported a 3.9% increase in
sales at existing stores, de-
to three and a half
million shoppers.
4.3%
3.1%
2.9%
2.7%
2.4%
2.2%
2.0%
1.9%
1.8%
1.6% 24.9% more than 250,000 workers
across the world, analysts say.
combined
spite the warm weather, in Some companies have al-
Best Buy Nordstrom Wal-Mart Target Groupon
part due to “record” online ready folded. More than three
sales for the season. Apple iTunes Macy's Kohl's Etsy dozen energy companies have
—Chelsey Dulaney Source: Slice Intelligence THE WALL STREET JOURNAL. recently declared bankruptcy,
contributed to this article. including Swift Energy Co.
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THE WALL STREET JOURNAL. * * * * Friday, January 8, 2016 | B3
BUSINESS NEWS
JOHN M. ANGELO
Ford Motor Co. is changing was considering spinning off sumer Electronics Show this week.
how it accounts for pension Save-A-Lot in a bid to help inves- —Mike Ramsey
plans, a move that should boost tors better understand and value
company earnings while making the low-price, no-frills chain. In GREENBRIER
profitability in Europe more likely Thursday’s filing with the Securi-
and giving a clearer picture of ties and Exchange Commission,
Low Energy Prices
the automotive group’s underly- Supervalu said its shareholders Boost Railcar Orders 1941–2016
ing performance. would own at least 80% of the Railcar maker Greenbrier Cos.
The change would put Ford’s newly public Save-A-Lot company. reported record revenue as low
results on a more equal footing Supervalu didn’t set a dead- energy prices boosted orders.
with General Motors Co. and Fiat line for taking Save-A-Lot public, But Greenbrier Chief Executive
Chrysler Automobiles NV’s U.S. and a spokesman said there is no William Furman warned Thurs-
division, which had past pension assurance the spinoff will occur. day that order and backlog levels
losses wiped away in bankruptcy. —Ilan Brat will likely come down from their
Ford said Thursday it is shift- “elevated energy-driven peak.”
ing to “mark to market” account-
ing for pension and retiree-bene-
PANASONIC For the November quarter,
Greenbrier delivered 6,900 units
Family Man, Entrepreneur, Philanthropist,
Up to $1.6 Billion
fit plans. The change requires
revisions to earnings dating to Set for Tesla Venture
compared with 4,000 units a year
ago. At quarter-end, the company
Arts Patron, Friend
2011. It also sweeps away bil- Panasonic Corp. President has a backlog of 36,000 units,
lions of dollars in pension-plan Kazuhiro Tsuga said the com- compared with 41,200 units a
losses from previous years that pany would spend up to $1.6 bil- year before. For the quarter ended
Ford had yet to factor in to fu- lion on an advanced battery fac- Nov. 30, Greenbrier reported a
ture results and allows the auto tory with electric-car maker profit of $69.4 million, or $2.15 a
maker to approach coming years
with a cleaner slate.
Tesla Motors Inc., an investment
it hopes will secure it a future in
share, up from $32.8 million, or
$1.01, a year prior. Revenue
Ethical, Smart, Witty, Inspirational,
—Michael Rapoport automotive electronics. jumped 62% to $802.4 million.
and Christina Rogers The Japanese consumer-elec- —Austen Hufford
Visionary, Fun
New York | Chicago | Houston | Los Angeles | San Francisco | Washington D.C.
London | Amsterdam | Frankfurt | Hong Kong | Tokyo | Seoul
Danish jeweler Pandora A/S plans to add 200 to 300 stores each year between 2016 and 2018 and
will increase its focus on earrings following a similar move to promote rings. The jeweler said
around 60% of new stores would open in Europe, 20% in the Americas and 20% in Asia Pacific.
Above, the site of a Pandora store under construction in Bradford, U.K., last November.
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B4 | Friday, January 8, 2016 * *** THE WALL STREET JOURNAL.
BUSINESS NEWS
762
Simon Henry has been press- they’ve gone too far,” said a BG are scheduled to hold arbitrage spread—is an indica- price are blowing the spread
ing the flesh with investors person familiar with the mat- meetings Jan. 27 and 28, re- tor of what buyers could make out. Crude prices fell again
and analysts this week in Lon- ter who was at one of the spectively, for shareholders to when investing in an acquisi- Thursday, with the U.S. bench-
don. Chief Executive Ben van meetings. Shell confirmed the vote on the tie-up. tion target ahead of a deal’s mark slipping below $33 a Boeing’s jetliner deliveries in
Beurden has had a series of meetings and said the fall in The offensive comes as completion. Spreads typically barrel before finishing at 2015, up from 723 planes a
telephone calls with U.S. in- oil prices hadn’t undermined some investors wonder narrow as shareholder vote $33.27. year earlier.
vestors, and is expected to the rationale for the deal. whether the deal will be com- approaches. Shell estimated that the
meet with U.K. shareholders in Institutional Shareholder pleted at all. The spread be- A widening spread could long-term oil price needed for
London on Friday and next Services, which advises inves- tween the value of BG’s share mean investors aren’t confi- the deal to break even is in the new deals after three straight
week to press home the ratio- tors on such deals, is expected price and Shell’s offer for each dent the deal will be approved low $60-a-barrel range. years of its securing 1,200-plus
orders. Cancellations remain
below historical averages de-
such leaders. Temporary lead- board experience gave him “a ecutives “tend to just sit there,” In many ways, the job of ders and 118 cancellations a
ers must show strength and sense of things, but you don’t and put off launching new the interim boss is defined as year earlier.
rally the troops during uncer- have a really deep understand- Mattel CEO Christopher Sinclair products or making decisions much by what a leader cannot As of the end of November,
tain times, but they also can’t ing” before becoming the com- because there is not a perma- do than by what he can. Airbus had accumulated 1,007
make bold changes or act like pany’s temporary top boss. cruiters DHR International. nent, powerful chief there to “It’s king for the day,” says net orders. The European
they will run the place long- Among other things, he re- Brash action can anger the endorse ideas or award credit. Davia Temin, CEO of Temin & plane maker is set to report its
term. In effect, the interim ti- called, he spent his first 45 company’s board of directors, The financial impact can Co., a Manhattan-based repu- full-year figures on Jan. 12.
tle says: “ ‘I am only keeping days trying to diagnose Mattel’s but tepid leadership can hurt vary depending on whether tation, crisis management and Lower oil prices are easing
the chair warm for somebody pressing problems and which an executive’s chances for ad- the prior leader left suddenly leadership coaching firm. She’s fuel bills for airlines, and inves-
else,’ ’’ says Robert S. “Steve” executives he could count on vancement after the perma- because of illness or was fired. currently coaching two interim tor concern that cheaper crude
Miller, a turnaround expert for its turnaround. “I don’t nent leader returns or arrives. Mr. Miller, a turnaround ex- CEOs, and says the job of tem- and rising interest rates might
who twice served as temporary think there were too many Some interim chiefs plucked pert, often resisted the “in- porary leader can weigh heav- damp demand for new jets in
CEO of Federal-Mogul Corp. hours of sleep in those first 45 from senior management resume terim” title during his years ily on executives in that role. the cyclical industry has hung
United and Valeant are just days,’’ Mr. Sinclair added. their prior role or take a differ- running eight different compa- They can’t commit to an or- over Boeing and Airbus, even
the latest big businesses turn- Interim leaders risk criti- ent internal position, such as nies. Now the head of Interna- ganization too deeply because as both piled up fresh orders.
ing to temporary leaders. Mat- cism for being too assertive or chief operating officer, Mr. Cohn tional Automotive Compo- they’ll likely be out soon. “It’s Boeing shares fell 4.2%
tel Inc., Starwood Hotels & too docile, says Jeffrey Cohn, says. Regardless, he added, “It’s nents Group, Mr. Miller says a short runway,” she says. “An Thursday to $133.01, among
Resorts Worldwide Inc., Ya- managing director for global hard to go back to hamburgers he just tried to act like a CEO interim CEO will rarely be able the biggest decliners of the
hoo Inc. and Best Buy Co. also CEO succession planning at re- when you have had filet.” during his stints as Federal- to change the culture.” Dow Jones Industrial Average.
10th-largest investor, hedge U.S., 90% or more of the pa- annually and make Mr. Munoz
fund Altimeter Capital LP, re- tients are alive and well a year eligible for cash bonuses and
ceived Federal Trade Commis- later, he said. long-term incentive awards.
sion approval to allow it to Waiting times for a new The accord awards him a sign-
take a more active role in its heart also vary widely. The ing bonus comprised of $5.2
investment—9.3 million UAL median wait for a donor million in cash and $6.8 mil-
shares as of Sept. 30. “We are heart in the U.S. in 2013-2014 lion in equity awards vesting
obviously concerned about the was 324 days, according to over three years. United has faced questions about how and when it disclosed information about its CEO’s health.
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THE WALL STREET JOURNAL. * * Friday, January 8, 2016 | B5
L
AS VEGAS—Can tech- The unforgettable, and at through a screen. But then, ing around and lifting my Edward Snowden, at risk of —Jonathan Cheng
nology teach you what times distressing, experience the Age Suit’s augmented-re- arms became extremely diffi- arrest if he enters the U.S., ap-
it feels like to be old? shed light not just on aging, ality software distorts that cult. My heart rate rose, and peared at the Consumer Elec-
Amid the hype about vir- but also how virtual reality view, to simulate the effects I was sweating enough that tronics Show anyway—courtesy
IBM’s Watson Helps
tual reality and robotics at equipment can teach empa- of vision problems: cataracts, my Age Suit needed a good of a robot-like device called Humanoid Robot
CES 2016, I strapped on a thy and shape our percep- macular degeneration, float- wash after I was done with Beam that uses a technology International Business Ma-
headset and exoskeleton de- tions of the world around us. ers and more. The glaucoma it. Mr. Ferren reminded me called telepresence. chines Corp., pivoting back to-
signed to make The suit made me feel like I simulation made my periph- that I still didn’t have it as The former National Security ward consumer applications,
you feel 40 was nearly 80 years old. eral vision gradually de- bad as someone who really Agency contractor and whistle- hopes to play a role providing
years older. “I would like a new dia- crease until I was left with suffers from arthritis: The blower appeared virtually at the data services in connection with
That’s right, logue on aging,” said Bran tunnel vision of just what’s Age Suit didn’t actually add booth of Suitable Technologies gadgets. But a star of its CES
older. The R70i Ferren, a former Disney in front of me. pain to my joints. Inc., maker of Beam, where he show was a robot.
Age Suit, made Imagineer and president of For hearing, the head- Genworth, which sells was interviewed by Peter Dia- Virginia Rometty, IBM’s CEO,
PERSONAL by a tech firm, R&D who co-founded Applied phones in the Age Suit added long-term-care insurance, mandis, founder of Xprize Foun- hosted a demonstration of a ro-
TECH Applied Minds Minds. “You can intellectual- the ringing of tinnitus and plans to tour the U.S. with dation and executive of chair- bot called Pepper whose perfor-
GEOFFREY LLC for Gen- ize these things all day long, raised background noise, the suit as part of its “Ag- man of Silicon Valley’s mance is enhanced with the com-
A. FOWLER worth Finan- but when it becomes an emo- making regular conversation ing Experience,” which also Singularity University. pany’s Watson data-analytics
cial, an insur- tional first-person experi- far more challenging. includes displays that let —Don Clark software. The robot was built by
ance company, ence, it is very different.” The most shocking part of onlookers glimpse the expe- Japan’s SoftBank Group Corp.
simulates vision and hearing Once I suited up in the the experience came from the rience of the person wear- Pepper, billed as the world’s
loss, as well as reduced mo- 40-pound kit—a three-person exoskeleton, which uses sen- ing it. The company says it
Intel Looks to New first robot capable of under-
bility from muscle deteriora- job—Mr. Ferren guided me sors to monitor eight joints in hopes to help caregivers Tech for Franchises standing human emotions, has
tion and arthritis. through the tech he’d devel- my arms, legs and hips, and gain a better understanding Chip giant Intel Corp. is in- been a hot item since becoming
Many of the same tech- oped to impair my senses then apply mechanical resis- of their patients—and per- vesting heavily in developing available to Japanese consumers
nologies could be used in and strength. As is often the tance to slow me down. The haps get the rest of us to technology for devices like in June 2015. It has a bit of an
exoskeletons that give us su- case, my vision went first. suit doesn’t move your mus- better appreciate our own drones, hoping to build new attitude, answering “bummer” to
perhuman capabilities, but An Oculus virtual-reality cles with you—it puts on the aging. “It gives you the franchises beyond PC processors. one question put to it.
think of this one as a reverse visor was fitted with cameras brakes. ability to look after your fu- It gave a glimpse at how far the —Don Clark and
Iron Man. so you can see what is ahead Ordinary tasks like walk- ture,” says Mr. Ferren. technology has come. Alexander Martin
REVIEW
Two Cheers for Political Spin
Americans gripe about today’s shallow, scripted politics, but presidents have used tools like photo ops,
speechwriting and polling for much of the past century—and often for their biggest achievements, writes
historian David Greenberg.
Credit: Ed Clark/The LIFE Picture Collection/Getty Images
©2015 Dow Jones & Company, Inc. All rights reserved. 6DJ3060
BUSINESS NEWS
Tesla’s Shock
Crude Day for Oil
BECK DIEFENBACH/REUTERS
To the System
HEARD ON THE
U.S. price hits lowest since 2004 IN THE MARKETS | C4 STREET | C8
© 2016 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Friday, January 8, 2016 | C1
DJIA 16514.10 g 392.41 2.32% S&P 1943.09 g 2.37% NASDAQ 4689.43 g 3.03% 10–YR. TREAS. À 7/32, yield 2.153% OIL $33.27 g $0.70 EURO $1.0933 YEN 117.66 See more at WSJMarkets.com
especially if the Fed makes transpired just this past sum- growth topped 300,000 in signs of growth. Layoffs are according to Dealogic.
good on its promise to con- mer: The U.S. economy aver- April 2011, the labor market at extraordinarily low levels. Revenue from advising
tinue raising rates. aged 243,000 monthly job posted job gains of less than A job-market stumble companies surged at many
“If they keep talking about gains from May through July. 200,000 in six of the next doesn’t have to lead to a prat- banks including Goldman
raising interest rates, I have a Then China and oil rattled seven months. fall. Sachs Group Inc. and Morgan
hard time believing we’ll see U.S. equity markets, prompt- Of course, this proved to Stanley, the top two deal ad-
traction” in financial markets, ing the S&P 500 to suffer its be a blip. The economy Email: tape@wsj.com visers by value, according to
Please see INVEST page C2 Dealogic. At Goldman, for ex-
INDEX Credit Markets.................................................C8 Exchange-Traded Funds......................... C3 Global Finance..................................................C3 Money Rates............................................. C7 ample, financial-advisory rev-
Heard on the Street: China’s Bond Tables............................................... C8 Currency Trading............................................C5 Finance Watch.................................................C2 Heard on the Street................................... C8 New Highs and Lows................. C4, C7 James Gorman, chief executive enue rose 36% year over year
Cash Prices................................................. C6 Dividend News............................................... C8 Futures................................................................. C6 Markets Digest.............................................. C5 Stock Listings........................................... C6
short day prolongs pain ..... C8 of Morgan Stanley Please see BONUS page C2
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C2 | Friday, January 8, 2016 NY * **** THE WALL STREET JOURNAL.
$172,860
investment officer at Eaton
Vance Management, said he
is “inclined to add risk” to the
firm’s stock portfolios in light Average bonus paid last year
of recent global market vola- in New York’s securities
tility, but hasn’t made signifi- industry
cant changes yet.
Mr. Perkin, who oversees
$36 billion across a number of midst of a slump, had carried
portfolios, said it is the firm’s the firm’s results in times
policy to not hold large cash when other divisions strug-
balances in stock funds, so gled, people familiar with the
NG HAN GUAN/ASSOCIATED PRESS
GLOBAL FINANCE
Ties to China Punish Germany’s Shares
Exposure to Chinese clines earlier this week, after to China has become some- terms. (Unlike other bench- better time than the DAX. The Alexander Fitzalan-How-
a round of poor Chinese eco- thing of a liability as that marks, the DAX is generally Nikkei Stock Average is ard, who manages German
turbulence hurts DAX nomic data and as Beijing’s country’s economy slows. The quoted on a total-return basis down 6.65% this week. and European stock portfolios
more than the index’s response fueled fears over the U.S. stock market’s links to that includes dividends.) That Germany’s current vulnera- at J.P. Morgan Asset Manage-
health of the world’s second- China are comparatively mod- is a striking turnaround for a bility comes from exposure of ment, estimates that around
peers in Europe, Japan largest economy. Global stock est, and its declines this week market that climbed as much the country’s major car mak- 10% of revenues of DAX com-
and commodity markets have been less severe. as 25% in early 2015, powered ers and other exporters to panies come from China. That
BY TOMMY STUBBINGTON moved sharply lower as a re- “Germany’s main strength by the European Central waning demand in China. That compares with a European av-
AND RIVA GOLD sult, but those with the big- is turning into a weakness,” Bank’s stimulus program. threatens to overshadow a ro- erage of around 6%, he said.
gest exposure to China, in- said François Savary, chief in- The DAX has fared worse bust economy at home, inves- Mr. Fitzalan-Howard is
As turmoil in Chinese mar- cluding Germany’s stock vestment officer at Prime than the rest of Europe, with tors say. steering clear of major Ger-
kets batters stock prices market, fell furthest. Partners, a Swiss investment the pan-European Stoxx Eu- German companies, partic- man car makers such as BMW
around the world, Germany In recent years, stock mar- firm managing $2.6 billion of rope 600 down 5.4% so far in ularly large firms represented AG and Volkswagen AG, which
has been taking a bigger beat- kets with big ties to China assets. “It relies too heavily 2016. The U.K.’s FTSE 100 has in the DAX, export more is mired in an emissions scan-
ing than most. prospered, as investors re- on world economic activity.” fallen 4.6% this year, and goods to China than their Eu- dal. He prefers media shares,
The flagship DAX stock in- warded companies that had The DAX index is down 7.1% France’s CAC-40 is off 5%. ropean or U.S. rivals, a fact such as ProSiebenSat.1 Media
dex fell 2.3% to 9979.85 on tapped into the world’s big so far in 2016 and has wiped Even stocks in China’s the country’s lawmakers have SE, whose revenues come
Thursday, adding to steep de- growth engine. Now, exposure out all of 2015’s gains in price neighbor Japan are having a long trumpeted. from domestic markets.
The Chinese currency, the isn’t on top of how to deal But its embattled tone sig-
yuan, has lost 1.5% against the with it, a recurring worry naled that trying to control
dollar over the past four trad- since the government bungled markets has become a no-win
ing sessions. That compares a stock-market rescue in the game for Beijing—and an ex-
with the yuan’s 4.4% depreci- summer. pensive one.
ation during all of last year. Less than 30 minutes after
“The volatility is indicative China’s stock market opened,
of China’s economy probably The steep drop in the yuan has worrying implications for countries that rely on exports to China. a quick share drop set off a
The central bank’s
being less stable than people circuit breaker for the short- actions left traders
had hoped,” said Jordi Vis- rency weakness and slowing beans, said Rahul Chadha, co- foreign reserves fell by $107.9 est trading day in the market’s
ser, chief investment officer at growth could disrupt the Fed- chief investment officer at billion—the largest monthly 25 years.
shell-shocked as
Weiss Multi-Strategy Advisers eral Reserve’s plans. The Fed Mirae Asset Global Invest- drop on record. It was the second time in trades were in peril.
LLC, a hedge fund with $7.2 in December lifted short-term ments. “China may want to avoid the circuit breaker’s first week
billion in assets. interest rates for the first time “China has been the main repeating such a high cost by that it cut the trading day
China’s slowing growth al- since 2006, and it is expected driver for global growth in re- intervening less at present,” short. Late Thursday, China’s Since mid-August, when the
ready has hammered commod- to follow with additional tight- cent years,” said according to a Barclays PLC securities regulator suspended central bank delivered a sur-
ity prices, from oil to copper. ening this year to stay ahead Mr. Chadha, whose firm has analyst note. the mechanism. prise devaluation, it has been
Now, economists worry that a of inflation. Deflationary pres- $73 billion of assets under Not everyone thinks that Meanwhile, stock markets blowing through the country’s
weaker yuan could further re- sure from China could cause management. the yuan has to continue to around the world swooned foreign-exchange reserves to
duce the country’s purchasing the Fed to pause that tighten- Countries that have close decline at such a breathtaking and oil prices dropped precip- fend off those betting against
power in international mar- ing, some analysts say. trade ties to China, or com- pace. With China posting itously. the yuan.
kets, hurting countries that The world has felt the pinch pete with China in other mar- monthly current-account sur- In the U.S., the Dow Jones China’s reserves slumped a
export to China. from slowing Chinese eco- kets, are bearing the brunt. In pluses as a net exporter and Industrial Average dropped record $108 billion to $3.33
The yuan’s sudden depreci- nomic growth since 2011. Over Asia, economists regard Indo- with a still-large war chest of 392.41 points, or 2.3%, to trillion as of the end of De-
ation also is sparking wider the first 11 months of 2015, nesia, South Korea and Malay- dollars, “the fears are proba- 16514.10. The S&P 500 cember from the previous
currency volatility that is China’s imports fell 15.1% year sia as the most vulnerable to a bly a little overblown,” said dropped 2.4%, and the Nasdaq month, data showed Thursday.
leading investors to park over year, as its purchases weaker yuan, and their curren- Claire Dissaux, head of global Composite declined 3%. The drop is nearly five times
money in euros or Japanese from almost all of its trading cies are pushing toward multi- economics and strategy at Mil- Light sweet crude for Feb- what analysts estimated.
yen for their perceived safety. partners declined. year lows against the dollar. lennium Global Investments ruary delivery settled down “China is now paying the
Appreciation in these cur- China’s imports of mainly Elsewhere, countries that Ltd., which manages $16 bil- 70 cents, or 2.1%, at $33.27 a price for its half-hearted ap-
rencies, driven in part by this commodities from South Af- export raw materials to China lion in assets. barrel on the New York Mer- proach to market liberaliza-
flight to safety, makes Japa- rica and Russia fell 33.7% and are hit the hardest, including Despite the recent depreca- cantile Exchange, the lowest tion and its inability to cut the
nese and European exports 20.6%, respectively, over those South Africa, Colombia and tion, China’s currency is settlement since February cord from heavy-handed state
less competitive, sapping 11 months. During the same Brazil. among those that have 2004. Brent, the global bench- control of markets and the
growth at a time when the time, China’s purchases from Greater capital outflows strengthened the most in re- mark, settled down 48 cents, economy,” said Eswar Prasad,
Japanese and European cen- Japan and Europe also de- from China also are raising cent years. Since 2010, the or 1.4%, at $33.75 on ICE Fu- a Cornell University professor
tral banks have been trying to clined 12.5% and 14.1%. questions about the effective- yuan appreciated more than tures Europe, the lowest level and former China head of the
stimulate demand. Given China’s enormous ap- ness of the government’s 30% against its trading part- since June 2004. IMF.
On Thursday, the euro petite for goods, no other costly interventions. Beijing ners’ currencies through No- Trading in the yuan early He said a clear commitment
gained 1.4% to 1.0933 to the economy in the world is has been spending dollar re- vember 2015 on an inflation- Thursday was light because of to market overhauls is China’s
dollar, while the yen rose 0.6% equipped to pick up the slack serves to buy yuan in an effort adjusted basis, according to the market’s befuddlement only option for stabilizing
to 117.663 to the dollar. in demand for everything from to slow the currency’s depreci- the Bank for International Set- about the PBOC’s next move— markets and restoring confi-
For the U.S., China’s cur- German cars to Brazilian soy- ation. In December, China’s tlements. which turned out to be an ex- dence.
IN THE MARKETS
U.S. Oil Prices Fall to Lowest Since 2004
A feared drop-off in Just a month ago, oil mar- China and the way the world comprised of 13 types of crude positive territory, before re- put cuts since prices started
kets were preoccupied with economy is shaping up,” said sold by members of the Organi- suming its decline. falling in mid-2014, and the
demand from China the idea of oil staying below Doug King, chief investment of- zation of the Petroleum Export- Traders mentioned market group’s production rose
would add to current $40 a barrel. Now a number of ficer at RCMA Asset Manage- ing Countries, had declined to chatter that OPEC was plan- sharply last year. OPEC’s next
analysts say $30 a barrel is ment and manager of that $29.71 a barrel Wednesday. ning an emergency meeting. meeting is scheduled for June.
global supply glut the next stop for the battered firm’s $225 million Merchant Some analysts and traders But OPEC delegates told the Gasoline futures fell 1.58
commodity. Commodity hedge fund. China don’t believe the current low Journal that they haven’t been cents, or 1.4%, to $1.1460 a
BY GEORGI KANTCHEV “It looks more likely than consumes about 12% of the prices can last much longer. contacted about such an event. gallon, the lowest settlement
AND NICOLE FRIEDMAN not that we will drop below world’s oil, making it the Companies eventually will OPEC hasn’t agreed to any out- since February 2009.
$30,” said Chris Main, oil world’s No. 2 user after the U.S. stop pumping money-losing
U.S. oil prices joined the strategist at Citigroup. “And Brent, the global bench- barrels, curbing global sup-
global benchmark at levels last with fundamentals looking mark, fell 48 cents, or 1.4%, to plies and setting the stage for Treasury Sets Sales of $112 Billion in Debt
seen in 2004, hammered by pretty terrible, we could stay $33.75 a barrel Thursday on a rebound. “Fundamentally,
the market turmoil in China, there for a couple of months.” ICE Futures Europe. It has prices below $35 a barrel are The Treasury Department will 2016, maturing Jan. 15, 2019. Cu-
the world’s second-biggest Some analysts are even dropped every day this week hardly sustainable, unless auction $112 billion in securities sip number: 912828N63. Non-
consumer of the fuel. calling for oil to drop into the and on Wednesday sank to its global growth slows mark- next week, comprising $50 bil- competitive tenders must be re-
Worries about slowing eco- $20-a-barrel range, a view lowest levels since June 2004. edly,” said Norbert Ruecker, lion in new debt and $62 billion ceived by noon Tuesday;
nomic growth, especially in that grabbed headlines back in The historic drop in crude- head of commodities research in previously auctioned debt. De- competitive tenders, by 1 p.m.
China, are September when it was es- oil prices has inflicted pain at Julius Baer. tails (all with minimum denomi- Wednesday: $21 billion in
COMMODITIES helping to poused by Goldman Sachs ana- world-wide, hitting the bottom In the near term, though, nations of $100): nine-year, 10-month 2.25% notes,
drive the lysts. At that time, the invest- lines of crude producers, the the prospect of more barrels Monday: $28 billion in 13- a reopening of an issue first sold
sharp drop ment bank was a rare outlier. finances of oil-producing from Iran is looming over the week bills, a reopening of an is- on Nov. 16, 2015, maturing Nov.
in crude prices. With produc- Then, the average forecast of countries and financial bets on market. Sanctions on the Per- sue first sold on Oct. 15, 2015, 15, 2025. Cusip number:
ers in the U.S. and Mideast still 12 investment banks polled by the energy sector. sian Gulf producer could be maturing April 14, 2016. Cusip 912828M56. Noncompetitive
pumping oil at a fast clip, a The Wall Street Journal was Producers of so-called heavy lifted this quarter, giving Ira- number: 912796HL6. tenders must be received by
drop-off in demand would add for $47 a barrel in the first oil, which tends to be of a lower nian producers the green light Also Monday, $26 billion in noon Wednesday; competitive
to the global supply glut that quarter of this year. quality than the main bench- to ship more crude into an al- 26-week bills, dated Jan. 14, tenders, by 1 p.m.
has shaved about 70% off Wall Street and industry marks, have been particularly ready oversupplied market. 2016, maturing July 14, 2016. Thursday: $13 billion in 29-
prices over the past 18 months. analysts have repeatedly been hard hit. Western Canadian Se- “When you just sit back and Cusip number: 912796JB6. year, 10-month 3% bonds, a re-
The U.S. benchmark crude- proved wrong during the oil lect, the benchmark for heavy look at oil, there’s nothing Noncompetitive tenders for opening of an issue first sold on
oil contract tumbled 70 cents, rout, whose speed and scope crude from the Canadian oil positive,” said Dominick Chir- both issues must be received by Nov. 16, 2015, maturing Nov. 15,
or 2.1%, to $33.27 a barrel on have defied even the most sands, traded about $14 a bar- ichella, analyst at the Energy 11 a.m. EST Monday and com- 2045. Cusip: 912810RP5. Non-
the New York Mercantile Ex- pessimistic forecasts. rel below the U.S. benchmark Management Institute. petitive tenders, by 11:30 a.m. competitive tenders must be re-
change. That is the lowest “Demand won’t be coming Thursday, putting its price in Oil perked up during intra- Tuesday: $24 billion in ceived by noon Thursday; com-
close since February 2004. to the rescue this time, with the teens. And the OPEC basket, day trading, rising briefly into three-year notes, dated Jan. 15, petitive tenders, by 1 p.m.
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
16514.10 t 392.41, or 2.32% Trailing P/E ratio * 15.66 16.79 1943.09 t 47.17, or 2.37% Trailing P/E ratio * 22.95 19.37 4689.43 t 146.34, or 3.03% Trailing P/E ratio * 23.25 24.25
High, low, open and close for each P/E estimate * 16.10 15.71 High, low, open and close for each P/E estimate * 17.44 16.50 High, low, open and close for each P/E estimate * 20.04 18.95
trading day of the past three months. Dividend yield 2.72 2.48 trading day of the past three months. Dividend yield 2.14 1.94 trading day of the past three months. Dividend yield 1.17 1.26
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15
World The Global Dow 2205.52 –49.84 –2.21 –5.6 Dynavax Technologies DVAX 29.70 8.52 40.23 32.49 15.80 65.3 SunEdison SUNE 3.34 -2.17 -39.38 33.45 2.55 -82.5
The Global Dow Euro 1917.03 –58.46 –2.96 –5.3 MakeMyTrip MMYT 20.29 3.87 23.57 28.19 11.97 -24.6 Ardelyx ARDX 10.09 -4.87 -32.55 27.99 7.95 -57.2
DJ Global Index 291.56 –6.45 –2.16 –5.3 VS 2x VIX Short Term TVIX 8.53 1.53 21.86 37.40 5.31 -67.7 Heat Biologics HTBX 3.11 -1.21 -28.01 10.90 1.67 -30.4
World DJ Global ex U.S. 198.36 –3.84 –1.90 –5.6 ProSharesUltVIXST UVXY 38.84 6.91 21.64 170.05 23.83 -67.5 Fuel Systems Solutions FSYS 3.36 -1.07 -24.15 11.64 3.36 -69.3
CounterPath CPAH 2.41 0.39 19.19 9.70 2.02 -69.9 Altisource Asset Mgmt AAMC 15.48 -4.49 -22.48 342.85 10.37 -95.5
Americas DJ Americas 462.34 –11.40 –2.41 –5.1
Brazil Sao Paulo Bovespa 40694.72 –1078.42 –2.58 –6.1 Mistras Group MG 21.95 3.30 17.69 22.76 12.65 5.5 Nobilis Health HLTH 2.47 -0.63 -20.32 9.34 2.15 -23.4
Canada S&P/TSX Comp 12448.21 –278.59 –2.19 –4.3
American Independence AMIC 14.60 2.15 17.27 14.64 8.50 40.9 Lucas Energy LEI 4.25 -1.05 -19.81 11.25 1.23 51.8
uniQure QURE 17.28 2.37 15.90 36.38 14.52 -2.7 JinkoSolar Holding ADR JKS 20.85 -4.91 -19.06 32.28 14.32 12.2
Mexico IPC All-Share 40661.57 –1029.62 –2.47 –5.4
VelocityShares 3x Lg Nat UGAZ 2.60 0.32 14.04 27.15 1.29 -86.9 Northwest Biotherapeutics NWBO 2.31 -0.54 -18.95 12.55 2.11 -60.0
Chile Santiago IPSA 2843.91 –46.87 –1.62 –3.4
DXN DLY GLDMNR 3x BL NUGT 30.74 3.57 13.14 214.00 21.70 -77.5 OncoCyte OCX 7.25 -1.68 -18.81 10.24 3.10 ...
Europe Stoxx Europe 600 346.51 –7.84 –2.21 –5.3
DXN DLY RSSA BEAR 3X RUSS 46.40 5.18 12.57 110.88 24.08 -45.8 ICAD ICAD 4.09 -0.89 -17.87 11.14 2.95 -57.9
Euro zone Euro Stoxx 326.29 –5.88 –1.77 –5.5
UltraPro Shrt Biotech ZBIO 26.67 2.92 12.29 38.85 17.00 ... Medgenics MDGN 4.97 -1.08 -17.85 10.25 4.88 -21.6
Belgium Bel-20 3550.71 –62.98 –1.74 –4.0
Arotech ARTX 2.39 0.26 12.21 3.74 1.11 7.2 C&J Energy Services CJES 3.36 -0.73 -17.85 18.45 2.97 -72.1
France CAC 40 4403.58 –76.89 –1.72 –5.0 Direxion Natl Gas Bear 3x GASX 76.80 8.29 12.10 87.21 37.50 ... North Atlantic Drilling NADL 1.86 -0.40 -17.70 23.70 1.80 -86.9
Germany DAX 9979.85 –234.17 –2.29 –7.1 Direxion S&P Biotech Bear LABD 44.48 4.76 11.98 66.40 24.00 ... Basic Energy Services BAS 1.93 -0.41 -17.52 10.50 1.91 -66.1
Israel Tel Aviv 1493.97 –29.44 –1.93 –2.3
Italy FTSE MIB 20189.48 –232.91 –1.14 –5.7
Netherlands AEX 420.76 –8.00 –1.87 –4.8 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 9059.30 –138.10 –1.50 –5.1 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 475.51 –11.04 –2.27 –5.9
Switzerland Swiss Market 8449.86 –163.56 –1.90 –4.2 SPDR S&P 500 SPY 201,215 73.7 194.05 -2.40 213.78 182.40 iShares NA Tech-Mult IGN 2,042 3562 34.32 -3.24 40.59 30.13
5954.08 –1.96 –4.6 SunEdison SUNE 161,688 211.4 3.34 -39.38 33.45 2.55 iShares MSCI World ETF URTH 770 2000 65.15 -3.24 77.35 60.01
U.K. FTSE 100 –119.30
iPath SP 500 VIX Sht Tm VXX 115,688 90.0 23.60 10.85 37.35 15.48 Dynavax Technologies DVAX 10,171 1735 29.70 40.23 32.49 15.80
Asia-Pacific DJ Asia-Pacific TSM 1311.90 –29.76 –2.22 –5.6 Bank Of America BAC 114,621 46.3 15.50 -3.61 18.48 14.60 Epizyme Inc. EPZM 7,836 1643 11.07 -4.07 28.48 9.32
Australia S&P/ASX 200 5010.30 –112.80 –2.20 –5.4 General Electric GE 91,598 -0.4 28.97 -4.23 31.49 19.37 iShares Curr Hdgd MSCI EM HEEM 1,865 1489 18.72 -3.51 26.37 18.72
China Shanghai Composite 3125.00 –236.84 –7.04 –11.7
iShares MSCI Emg Markets EEM 85,155 35.7 29.83 -3.08 44.19 29.81 OShs FTSE US Quality Div OUSA 297 1333 24.23 -1.62 25.66 21.68
Hong Kong Hang Seng 20333.34 –647.47 –3.09 –7.2
Apple AAPL 79,306 80.4 96.45 -4.22 134.54 92.00 Korea Equity Fund KEF 96 1328 6.72 -0.74 8.61 6.69
India S&P BSE Sensex 24851.83 –554.50 –2.18 –4.8
VelocityShares 3x Lg UWTI 74,084 125.1 2.84 -6.58 43.20 2.80 EZchip EZCH 4,022 1186 25.20 2.65 25.25 14.30
Japan Nikkei Stock Avg 17767.34 –423.98 –2.33 –6.7
Finl Select Sector SPDR XLF 73,181 78.4 22.45 -2.81 25.62 18.52 ProSh Sh Xinhua China 25 YXI 98 1108 32.11 4.04 33.41 21.59
Singapore Straits Times 2729.91 –74.36 –2.65 –5.3 Mkt Vectors Gold Miners GDX 66,639 15.8 14.88 4.42 23.22 12.62 Akebia Therapeutics AKBA 5,041 1092 8.66 -9.79 14.20 5.91
South Korea Kospi 1904.33 –21.10 –1.10 –2.9 * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
* Volumes of 100,000 shares or more are rounded to the nearest thousand
Taiwan Weighted 7852.06 –138.33 –1.73 –5.8 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group
t 3.00 Euro
One year ago –15 Ecuador US dollar 1 1 unch Hungary forint .003472 288.02 –0.8
t
$ 799
MSRP*
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C8 | Friday, January 8, 2016 THE WALL STREET JOURNAL.
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Tesla Could Be Shocked by Competitors China Is the Stuff of Nightmares for Banks
Tesla Motors should years.” But Tesla produced For banks, and perhaps past five years. kets crisis, any gain could
check its rearview mirror. Zero to 60 just 507 of its Model X the Federal Reserve, too, the Should things stay like prove short lived.
General Motors unveiled Tesla stock price, weekly sport-utility vehicles in the nightmare scenario may play this, or the spread tightens What’s more, banks this
the 2017 Chevrolet Bolt, a Thursday
fourth quarter some three out more rapidly than any- further, it is bad news for time around might have to
purely electric vehicle, on $300 years after unveiling it. With one could have expected. banks. They make more compete more for deposits,
$215.65
Wednesday, saying it will be the Bolt entering production The worry was that the money when the difference especially because of new li-
available late this year. And 200 later this year, Tesla needs Fed would lift short-term in- between short- and long- quidity rules. This means
Ford Motor said last month to pick up the pace. Mean- terest rates and that long- term yields is wider. The ex- they may have to raise rates
it will invest heavily in elec- 100 while, Tesla will have to term rates, rather than ris- pectation was that when the at a slightly brisker clip than
tric cars. GM says the Bolt, compete on price—a tall or- ing, fall instead. And there is Fed began to raise rates as it they would have in the past,
which will sell for under der. While only selling luxury a greater possibility of this did in December, yields which also could pressure
0
$30,000 after incentives, has cars, which tend to carry happening thanks to finan- would move at both ends of their margins.
a driving range above 200 2011 2012 2013 2014 2015 higher profit margins, Tesla cial-market turmoil emanat- the curve and banks would Bank investors have been
miles. While less than the Source: Dow Jones Market Data Group had free cash flow of nega- ing from China. benefit. Yet the two-year waiting for years now for
luxury Tesla Model S sedan, tive-$1.7 billion in the first One way to see this is note’s yield rose more the era of ultralow yields,
its sticker price is less than veloping desirable cars, but nine months of 2015. through the spread, or dif- quickly, and fell less, than which have squeezed banks’
half as much. cheaper electric competitors Tesla’s valuation of over ference, between yields on that of the 10-year. net-interest margins, to fi-
The Bolt’s impending ar- will spotlight areas where it 20 times projected 2019 two-year and 10-year U.S. Granted, banks were quick nally come to an end. If the
rival raises the stakes for has struggled. earnings doesn’t leave much Treasury debt. Already at to raise some lending rates benefit doesn’t flow as ex-
Tesla’s unveiling of a mass- Take production capabil- wiggle room. Avoiding pot- low levels, this spread has after the Fed acted and will pected, they will have to
market Model 3 sedan proto- ity. Tesla chief Elon Musk holes while continuing to been contracting again. At drag their feet on raising de- again put on hold hopes a
type in March that it says said in November that he make desirable cars will be one point Thursday, it fell to posit rates. That gives them rising rate environment will
will cost around $35,000. hoped for the Model 3 to be Tesla’s toughest test yet. about 1.19 percentage points, some benefit. But if China lift bank-stock valuations.
Tesla hasn’t had trouble de- available in “about two —Charley Grant near its lowest level of the struggles to contain its mar- —David Reilly
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds
Total return Yield (%), 52-Week Range l Latest Total return Yield (%), 52-Week Range l Latest
close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High
1835.67 0.5 Broad market Barclays Aggregate 2.520 1.920 l 2.630 352.27 1.1 7-12 year 1.609 1.498 l 2.144
2482.15 0.5 U.S. Corporate Barclays Capital 3.640 2.780 l 3.710 389.57 0.8 12-22 year 2.018 1.924 l 2.636
2427.12 0.4 Intermediate 3.040 2.210 l 3.120 370.22 0.9 22-plus year 2.717 2.542 l 3.351
3172.18 0.7 Long term 5.010 4.030 l 5.110 2243.16 0.3 Yankee Barclays 3.040 2.390 l 3.110
521.75 0.5 Double-A-rated 2.610 1.980 l 2.700 524.43 0.5 Global Government J.P. Morgan 1.520 1.240 l 1.780
615.02 0.4 Triple-B-rated 4.290 3.280 l 4.330 760.16 0.6 Canada 1.590 1.380 l 1.970
329.48 -0.4 High Yield Constrained Merrill Lynch 8.936 5.853 l 9.073 358.65 0.2 EMU 1.205 0.724 l 1.609
277.44 -0.7 Triple-C-rated 18.630 10.017 l18.630 684.23 0.3 France 1.050 0.490 l 1.360
2368.27 -0.2 High Yield 100 7.724 5.016 l 8.056 496.78 0.5 Germany 0.680 0.160 l 1.040
302.78 -0.4 Global High Yield Constrained 8.534 5.894 l 8.534 278.97 0.3 Japan 0.640 0.570 l 0.890
261.59 -0.6 Europe High Yield Constrained 5.772 3.550 l 5.772 544.56 0.3 Netherlands 0.840 0.240 l 1.130
1587.95 0.5 U.S Agency Barclays 1.570 1.110 l 1.680 836.37 1.3 U.K. 2.170 1.730 l 2.480
1433.94 0.4 10-20 years 1.360 0.940 l 1.480 669.54 -0.2 Emerging Markets ** 6.757 5.679 l 6.817
3042.89 1.3 20-plus years 3.210 2.490 l 3.370 *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
1914.07 0.4 Mortgage-Backed Barclays 2.710 2.280 l 2.900
1893.74 0.4 Ginnie Mae (GNMA) 2.620 2.170 l 2.860
1119.07 0.4 Fannie mae (FNMA) 2.740 2.300 l 2.910 Corporate Debt
1722.46 0.4 Freddie Mac (FHLMC) 2.770 2.310 l 2.930 Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in
that same company’s share price. Here’s a look at both for two companies in the news.
503.57 0.8 Muni Master Merrill Lynch 1.619 1.475 l 2.099
Investment-grade spreads that tightened the most…
Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Global Government Bonds: Mapping Yields
HP HPQ 4.375 Sept. 15, ’21 257 –22 n.a. 10.77 –4.61
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in Shell International Finance RDSALN 2.125 May 11, ’20 58 –21 n.a. ... ...
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Bank of America BAC 1.750 June 5, ’18 76 –16 69 15.50 –3.61
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points Freeport–McMoRan FCX 3.100 March 15, ’20 1425 –15 1292 5.61 –9.08
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago JPMorgan Chase JPM 7.900 April 30, ’49 353 –15 389 60.27 –4.04
1.000 U.S. 2 0.956 t l 0.980 0.923 0.613 Fidelity National Information Services FIS 3.625 Oct. 15, ’20 150 –13 n.a. 59.19 0.02
2.250 10 2.151 t l 2.169 2.231 1.971 Goldman Sachs GS 2.750 Sept. 15, ’20 95 –13 n.a. 164.62 –3.07
5.500 Australia 2 1.967 t l 2.001 2.099 2.160 101.1 102.1 154.7 Credit AXP 2.125 March 18, ’19 64 –12 n.a. 63.84 –0.90
3.250 10 2.667 t l 2.717 2.959 2.695 51.7 54.7 72.4
…And spreads that widened the most
4.250 France 2 -0.332 t l -0.325 -0.241 -0.046 -128.8 -130.5 -65.9
Freeport–McMoRan FCX 2.375 March 15, ’18 1593 110 1179 5.61 –9.08
1.000 10 0.923 s l 0.883 0.900 0.778 -122.8 -128.7 -119.3
Southwestern Energy SWN 7.500 Feb. 1, ’18 1627 89 1496 6.85 2.39
0.500 Germany 2 -0.373 s l -0.378 -0.317 -0.099 -132.9 -135.8 -71.2 Anglo America CA AALLN 4.125 April 15, ’21 1258 85 n.a. ... ...
1.000 10 0.540 s l 0.507 0.588 0.489 -161.1 -166.2 -148.2 Marathon Oil MRO 2.700 June 1, ’20 459 55 n.a. 10.67 –5.41
4.500 Italy 2 0.028 s l -0.001 0.066 0.528 -92.8 -98.1 -8.6 Bhp Billiton Finance USA BHP 6.250 Oct. 19, ’75 421 51 n.a. … …
2.000 10 1.561 s l 1.492 1.450 1.908 -59.0 -67.7 -6.4 Energy Transfer Partners ETP 5.200 Feb. 1, ’22 494 37 n.a. 30.11 –7.86
Amgen AMGN 2.125 May 1, ’20 114 36 n.a. 152.98 –2.39
0.100 Japan 2 -0.017 t l -0.017 -0.020 -0.019 -97.3 -99.7 -63.2
Bank of America BAC 5.200 June 1, ’49 326 35 342 15.50 –3.61
0.300 10 0.244 t l 0.254 0.327 0.302 -190.7 -191.5 -167.0
0.500 Spain 2 0.024 s l -0.008 0.052 0.468 -93.2 -98.8 -14.5 High-yield issues with the biggest price increases…
Bond Price as % of face value Stock Perfomance
2.150 10 1.755 s l 1.669 1.645 1.710 -39.6 -50.0 -26.2 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
1.000 U.K. 2 0.523 s l 0.523 0.563 0.421 -43.3 -45.8 -19.2 Momentive Performance Materials MOMENT 4.690 April 24, ’22 51.875 1.88 n.a. ... ...
2.000 10 1.805 s l 1.795 1.808 1.621 -34.6 -37.4 -35.0 Iheartcommunications IHRT 10.000 Jan. 15, ’18 41.500 1.50 39.000 ... ...
Source: Tullett Prebon Toys R US Property II TOY 8.500 Dec. 1, ’17 88.250 1.09 n.a. ... ...
Sabine Pass Liquefaction CQP 5.625 April 15, ’23 89.063 1.06 88.000 … …
Ceridian CEN 11.000 March 15, ’21 79.500 1.00 79.000 9.08 –5.61
Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record Drill Rigs Holdings ORIG 6.500 Oct. 1, ’17 57.438 0.84 58.750 … …
ETRACS 2xM Lev S&P MLP 21.8 .5072 Jan22 /Jan13 Wind Acquisition Finance S.A. WINDIM 6.500 April 30, ’20 104.250 0.80 105.000 ... ...
Dividend announcements from January 7. MLPV Q
ETRACS Divers Hi Incm ETN DVHI 11.4 .1965 M Jan22 /Jan13 Chesapeake Energy CHK 4.875 April 15, ’22 33.750 0.75 28.000 4.41 –5.77
Amount Payable / ETRACS Mhly 2x DJ Rl Est RWXL 4.6 .1033 M Jan22 /Jan13
Company Symbol Yld % New/Old Frq Record ETRACS Monthly 2xLev ETN SMHD 39.3 .436 M Jan22 /Jan13 …And with the biggest price decreases
Reduced ETRACS Monthly 2xLev xEn LMLP 2.5 .0226 M Jan22 /Jan13
ETRACS Monthly Pay 2xLev DVHL 26.4 .3536 M Jan22 /Jan13 Ultra Petroleum UPL 5.750 Dec. 15, ’18 16.250 –4.00 24.500 2.00 –13.42
MV Oil Trust MVO 9.1 .10 /.21 Q Jan25 /Jan15
ETRACS Monthly Pay 2xLev CEFL 27.5 .3528 M Jan22 /Jan13 Oasis Petroleum OAS 6.875 March 15, ’22 62.750 –3.31 n.a. 6.38 –7.54
Initial ETRACS Monthly Pay 2xLev MRRL 64.0 .7196 M Jan22 /Jan13
Atwood Oceanics ATW 6.500 Feb. 1, ’20 49.000 –3.00 n.a. 8.78 –2.88
IBERIABANK Pfd. B IBKCP .805 Feb01 /Jan15 ETRACS Mortgage REIT MORL 64.8 .7196 M Jan22 /Jan13
ETRACS WF MLP xEnergy FMLP 0.2 .0024 M Jan22 /Jan13 Arcelormittal S.A. MTNA 6.125 June 1, ’25 68.250 –3.00 n.a. ... ...
Funds and investment companies S&P 2xDiv Aristo ETN SDYL 6.4 .2491 M Jan22 /Jan13 Microchip Technology MCHP 1.625 Feb. 15, ’25 95.059 –2.63 101.839 42.66 –5.05
CS X-Links Gold GLDI 8.6 .0769 M Jan25 /Jan20 UBS AG TRACS Alerian MLPG 9.1 .466 Q Jan22 /Jan13
UBS AG-2x Alerian MLPL 20.4 .9479 Q Jan22 /Jan13 First Quantum Minerals FM 7.000 Feb. 15, ’21 60.250 –2.50 63.063 … …
Foreign UBS E TRACS Aler MLP Infr MLPI 8.4 .4956 Q Jan22 /Jan13 Mariposa Borrower NMG 8.750 Oct. 15, ’21 64.250 –2.50 62.500 ... ...
CS X-Links Silver ETN SLVO 3.9 .0306 M Jan25 /Jan20 UBS MLP Wells Fargo MLPW 8.5 .4295 Q Jan22 /Jan13 WPX Energy WPX 5.250 Sept. 15, ’24 64.250 –2.50 n.a. 5.13 3.22
DJ 2xSelect Div ETN DVYL 11.6 .4086 M Jan22 /Jan13 UBS Wells Fargo ETN BDCS 9.1 .4566 Q Jan22 /Jan13
ETRACS 2x BDC BDCL 19.7 .7764 Q Jan22 /Jan13 *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.
ETRACS 2xLev MSCI US REIT LRET 14.2 .2968 M Jan22 /Jan13 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
Note: Data are for the most active issue of bonds with maturities of two years or more
ETRACS 2xLev US Hi Div HDLV 11.7 .2501 M Jan22 /Jan13 semiannual; S2:1: stock split and ratio; SO: spin-off. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
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MORGENSTERN ON ‘ANOMALISA’
MOVIES | TELEVISION
© 2016 Dow Jones & Company. All Rights Reserved.
| MUSIC | ART |
ARENA
BOOKS | COMEDY
THE WALL STREET JOURNAL.
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Friday, January 8, 2016 | D1
CAN THE
PARTY
CRASHERS
TURN Clemson
vs
Alabama
ILLUSTRATION BY RAY BARTKUS; GETTY IMAGES (4); PARAMOUNT PICTURES (‘ANOMALISA’); BELOW: ALLISON MICHAEL ORENSTEIN FOR THE WALL STREET JOURNAL
THE INTERVIEW
SPORTS
BIG GAME
Continued from the prior page whose success at recruiting top
eration of Michigan State in the high school players is rarely
semifinal at the Cotton Bowl on ranked among the top 10 in the
New Year’s Eve. country, shouldn’t come as a sur-
However, head coach Nick Sa- prise: Clemson has prospered by
ban’s Alabama teams have proven focusing on players from the Caro-
vulnerable in recent years against linas, Georgia and Florida, where
Crimson Tide’s 10 losses the past six seasons include one star corner Mackensie Alexander (bottom right) can
to Cam Newton’s Auburn in 2010, during which Alabama match up better with Alabama’s wideouts than Michi-
blew a 24-0 lead, a 2012 loss to Johnny Manziel’s Texas gan State’s did. Also, a Clemson line that hails from
A&M, another to an Auburn team in 2013 coached by Gus North and South Carolina, known as “D-line heaven” be-
Malzahn, one of the pioneers of coaching fast football, and cause they churn out so many NFL linemen, must keep
last year to Ohio State and freakishly Henry under wraps without too much help. Tigers defen-
athletic quarterback Cardale Jones. sive end Shaq Lawson (top right), who injured his knee in
Clemson quarterback Deshaun Wat- the Orange Bowl win, needs to be healthy and play big.
son is cut from the same mold as New-
ton and Jones and leads an offense that WHO CAN LIMIT THE BIG MISTAKES?
uses relentlessness as a weapon. Clemson The ragged beauty of college football is that it is
gained 55% of its yards in the air this played by 18-to 23-year-olds prone to game-changing
season but also averaged 5 yards on ev- mistakes. Alabama essentially lost last year’s semifinal to
ery rush. Alabama’s front seven is plenty Ohio State on a third-quarter interception and touchdown.
big. Does it have the stamina to keep up? Alabama cut down on its turnovers, with a takeaway-give-
away margin of plus nine. Clemson didn’t take care of the
CAN CLEMSON CONTAIN BOTH DERRICK ball nearly as well, losing it 26 times and taking it away 25, a
HENRY AND ALABAMA’S RECEIVERS? margin of minus one. Alabama’s Eddie Jackson nabbed five of
In the semifinal, Michigan State prioritized stopping his team’s SEC-leading 18 interceptions this year. Watson
Heisman Trophy winner Derrick Henry by stuffing the threw 12 picks for Clemson, while Alabama’s less flashy
area behind its defensive line, known as “the box,” to Jake Coker threw just eight.
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THE WALL STREET JOURNAL. Friday, January 8, 2016 | D3
MORGENSTERN ON FILM
REWIND
A Tale of Love, Anxiety DVD // STREAMING
// DOWNLOAD
‘Eternal
Sunshine of the
Spotless Mind’
(2004)
REVIEW This gorgeous phantasmagoria
JOE MORGENSTERN takes a question for the ages—
of what is love compounded?—
and examines it
“ANOMALISA” takes its title from combining through fanciful
“anomaly”—something that deviates from the scans of a
standard—with Lisa, the name of the woebe- scorned lover’s
gone antiheroine. She feels like a hopeless cortex. Jim Car-
anomaly until she becomes a hopeful one by rey’s shy guy,
lighting up the life of the antihero, a lonely Joel, receives a
self-help guru named Michael. The larger notice from a
anomaly is the movie itself, which was written mysterious
by Charlie Kaufman and directed by him and company that
Duke Johnson. (Carter Burwell wrote the lovely his flaky girlfriend, Clementine,
score.) “Anomalisa” deviates from more stan- has chosen to have all memories
dards than any conventional entertainment of him erased from her brain.
would dare to. It’s animated, with stop-action She’s played, memorably, by
puppets, but steadfastly bleak—the most de- David Thewlis voices Michael Stone and Tom Noonan voices Bella Amorosi Kate Winslet. Michel Gondry di-
pressing thing you could see in a month of rected from an original script by
gloomy Sundays. Yet it’s also deadpan-funny, chael’s case, the undifferentiated voices—an ef- achieved by the puppets in “Team America: Charlie Kaufman.
and affecting in its depiction of spiritual isola- fective dramatic device—are the most telling World Police”.)
tion. Watching it may make you anxious from sign of his alienation, but they also have a sa- The most remarkable thing about “Anomal-
start to finish, but that’s exactly what it means tirical edge; so many of those empty phrases, isa” may well be that it got made, and is being
to do. In an age of endemic anxiety, this peer- delivered in a drone, sound like the deadly dull distributed by a major studio; detachment, mel-
lessly weird little film finds a new look—and a thrum we all encounter in everyday life. ancholy and the pain of living aren’t usually the
new sound—for feeling bad. Up to a certain point Michael’s case is stuff of mainstream filmmaking. That’s a trib-
The opening looks quite beautiful—an air- mainly that, a clinical study couched in stylized ute to Mr. Kaufman’s prowess as a writer: He ‘Othello’ (1965)
liner, floating off in the distance, that Michael animation. The poor man is coming undone, received Oscar nominations for “Being John Orson Welles finished “Chimes
sees from his window of the jet that’s taking and more than figuratively; the face confront- Malkovich” and “Adaptation,” then won an Os- at Midnight” the same year a
him to a lecture date in Cincinnati. But the ing him in a bathroom mirror fleetingly sug- car for “Eternal Sunshine of the Spotless revolutionary and magnificent
mood soon turns mournful, and there’s some- gests a mask worn by someone else. But there’s Mind.” “Othello” star-
thing unsettling in the conversations that sur- nothing clinical about his chance meeting with It’s also remarkable that many critics and ring Laurence
round him as he deplanes, takes a taxi and ar- Lisa, a young woman who has come to Cincin- critics groups have heaped lavish praise on Olivier was pre-
rives at his hotel; everyone seems to sound the nati and the Fregoli to hear his lecture. such an essentially grim enterprise, and that served on film.
same. In fact, everyone except Michael, who is Sentimental, yes; she’s as damaged in her audiences seem interested too, though to what (It was origi-
voiced eloquently by David Thewlis, does sound turn as he is. Still, the encounter is charged extent remains to be seen, since the film is only nally a stage
the same, because every character he encoun- with passion on both sides, and for Michael it’s now going into wide distribution. I won’t pre- production of
ters thus far, whether man, woman or child, is love at first sound as well as first sight. Lisa, tend that I enjoyed the experience as a whole— Britain’s Na-
voiced with eerie blandness by Tom Noonan. voiced delicately by Jennifer Jason Leigh, isn’t for a while my response was something along tional Theatre.)
What’s going on? Mr. Kaufman offers a clue part of the drone. She speaks from her heart to the lines of “Let me out of here!” But the eeri- Olivier’s ath-
with the name of the hotel: The Fregoli. It’s a his with ardent humanity, and sings, ever so ness of Michael’s world resonates with the dep- letic, ebony-skinned Othello—yes,
reference to the Fregoli delusion, a rare disor- poignantly, Cyndi Lauper’s “Girls Just Want to ersonalization of modern life, and in a truly the actor defied what’s now
der in which, as I learned after seeing the film, Have Fun.” They’re as awkward together as weird way “Anomalisa” provides an immersive called political correctness by
a person believes that different people are re- middle-schoolers on a first date, and their love- experience that is no less compelling, though performing in blackface—is a
ally a single person who changes appearance or making is so clumsy that you forget they’re lots more authentic, than the one you get in a dangerous fool, even a monster,
uses disguises. (He offered a similarly cheerful only puppets. Yet therein lies the movie’s bi- megahorror show like “The Revenant.” Once rather than the conventionally
clue in “Synecdoche, New York” by naming zarre triumph—it keeps you hoping that noth- you’re in that puppet’s head it’s hard to get out. gentle warrior who did in Desde-
Caden Cotard, the hero played by Philip Sey- ing will stop these stop-motion lovers from mona (played here by Maggie
mour Hoffman, after the Cotard delusion, finding the happiness they seek. (The film is Email Joe at joe.morgenstern@wsj.com and follow Smith) only because of Iago’s
whose sufferers believe they are dead.) In Mi- rated R for nude sex, a distinction previously him on Twitter: @JoeMorgenstern. beastliness.
‘Chimes at Midnight’
Orson
Orson Welles was Falstaffian long ten rejected by the industry he tow- Welles
before he played Falstaff, with a lust ered above, must have felt a special
for life matched only by his love of kinship with Jack.)
the movie medium. If Shakespeare Orson Welles is far from the only
had neglected to give Sir John a play attraction, though. The great Margaret
of his own, Welles was ready to rec- Rutherford is Mistress Quickly, whose
tify the lapse by giving the peerless description of Falstaff’s death is so
roisterer a movie of his own, and giv- vivid and heartfelt that you hardly no-
ing himself a great role in the pro- tice the absence of a death scene.
cess. He did so in “Chimes at Mid- The great—the adjective is repetitive,
night,” the 1965 film he directed from but required—John Gielgud is Henry
his screenplay based on sections of IV, his voice sonorous in a higher reg-
some of Shakespeare’s plays, mainly ister and his manner invincibly regal.
“Henry IV,” Part I and Part II. Since Jeanne Moreau doesn’t seem com-
then the film has been recognized as fortable as Doll Tearsheet, if truth be
a masterpiece, albeit a flawed one, told, but…she’s Jeanne Moreau!
and has become almost impossible If you know the distinctive black-
to find, except on videotapes and and-white look of Welles’s first mas-
DVDs of dismal quality. At long last, terpiece, “Citizen Kane,” you’re liable
though, “Chimes at Midnight” has un- to assume that “Chimes at Midnight,”
dergone a brilliant restoration, by like “Kane,” was shot by Gregg To-
Janus Films and the Criterion Collec- land. In fact its deep-focus style was
tion, and will be playing around the the work of Edmond Richard, but the
country in the next few months, with production looks stunning in its own
a new DVD release in prospect. See right, even though it was grievously
it on the big screen if you can; for all underfinanced and filmed, in Spain,
of its flaws it’s a glory. with a succession of stops and re-
The main attraction is Welles, of starts that accounted for many of its
course, decked out with scruffy hair, technical glitches and extensive dub-
a cantilevered beard, crusty eyes and bing of dialogue in post-production.
a crafty smile, and deploying a tuba- And Welles, cinema magician that
register voice that shakes the tim- he was, somehow managed to over-
bers of the Boar’s Head Inn. He come all financial and logistical prob-
gives a performance that’s monu- lems in his staging and editing of
FROM TOP: PARAMOUNT PICTURES (2); JANUS FILMS
Hollywood Goes
to Benghazi
“13 Hours” came in just under
BY DON STEINBERG
$50 million. “I didn’t want all the
expensive toys,” Mr. Bay says. “It
IN A CLIMATE where just saying was about shooting it very raw,
“Benghazi” can hint at a political over the shoulder of guys to make
agenda, Michael Bay’s new film “13 it feel like you are really there. Ev-
‘Colony’ actors Josh Holloway, in T-shirt above, and Sarah Wayne Callies, far right. At center, Ms. Callies and Mr. Holloway flanked by the series’s co-creator Carlton Cuse, left, and producer Ryan Condal.
LIFE IN OCCUPIED
pian setting of “Colony” and a post-apocalyptic
BY JOHN JURGENSEN
world in which survivors battled zombies with
any weapon available.
LOS ANGELES
CARLTON CUSE HAS BUILT a career on densely “Colony,” she says, “felt like the photo negative
plotted TV serials such as “Lost,” which weave com- of ‘Walking Dead.’ In that show there was chaos,
plex tales of life under extraordinary circumstances. an absence of law and order. Whereas in ‘Colony’
His latest offering, “Colony,” premiering on the there’s a hyper-organized state where decisions
USA Network Jan. 14, takes place in a near-future are taken out of your hands to a troubling extent.
L.A. that was walled off after a force of colonists and helped usher in an era of ambitious television. “Colony,” the channel scored with the stylish No Bill of Rights, no habeas corpus.”
arrived, apparently from outer space. A proxy hu- Almost six years after “Lost” ended, the hunger hacker thriller “Mr. Robot.” It gave the network a Mr. Cuse first worked with Mr. Condal on a TV
man government, masked soldiers and a fleet of for densely plotted serial dramas hasn’t dimin- berth on critics’ best-of-2015 lists and USA’s first pilot based on a comic book, a supernatural West-
menacing drones keep occupied society in check. ished—there just are fewer viewers watching each nomination for best television drama series at the ern called “The Sixth Gun,” but NBC passed on it.
Citizens are divided among privileged collabora- one, given the explosion of TV options. Golden Globes (to be handed out Sunday). Their brainstorming continued around the social
tors, shadowy resistance fighters and people just Mr. Cuse’s own post-“Lost” career bears that Still, for potential “Colony” viewers, the chan- and psychological effects of military occupation,
trying to get by. The family at the center of the out. The producer is busier than ever, steering nel it’s on will probably be incidental, says for- with inspiration from photographs of France dur-
show has to navigate these factions as they, multiple shows with niche followings. “Bates Mo- mer “Lost” star Josh Holloway, whose lead role ing World War II. Mr. Cuse says they were struck
along with the audience, discover more about the tel,” which marked A&E’s push into scripted on the show reunites him with Mr. Cuse. “Now by the juxtaposition of “Parisians going about
off-screen (so far) occupiers, the state of the drama, is a “Psycho” prequel. “The Returned,” also people don’t watch networks or channels—they their lives in normal fashion, sitting at sidewalk
world beyond L.A.’s walls and the fate of people on A&E, is about dead characters who rejoin the watch a show. They’ll follow it no matter where cafes, drinking espresso, while Nazi storm troop-
who disappeared in the aftermath of “the arrival.” living. FX’s “The Strain” envisions a vampire inva- it is. And if your show’s not good, you’re gone,” ers are going by on the street. Science fiction is
While the occupiers’ agenda and origins aren’t sion of New York. In addition to “Colony,” Mr. Cuse the actor says. the best way to create a modern analog for that.”
immediately clear, “the focus is not on withhold- has a new series coming to Amazon based on After “Lost,” Mr. Holloway played an investiga- They borrowed real-world references (Home-
ing answers to those mysteries. They’ll come out Tom Clancy’s Jack Ryan franchise. tor with a computer-linked brain in the CBS series land Security patrols the walled city on behalf of
over time,” says Mr. Cuse, one of the writers and “Colony” arrives on a cable channel that re- “Intelligence,” which was canceled after one sea- the “Colony” occupiers, and the well-compensated
producers behind “Lost.” “The show is really about cently changed its menu to keep up with shifting son. In “Colony,” he’s a former soldier forced into a class of collaborators live in a guarded Green
the characters and how they’ll survive.” He co-cre- tastes. USA Network, which was built on sports, job with the occupying government. His character Zone in the hills), and created an altered version
ated “Colony” with fellow executive producer Ryan broadcast reruns and licensed movies, has been (helped by a partner played by Carl Weathers) of L.A. (ration lines and streets filled with bicy-
Condal. The writers have a good grip on where the most-watched entertainment network on ba- has to hunt down an insurgent group in exchange cles, not cars). Except for a mysterious happening
the story is headed and why, Mr. Cuse adds, sic cable for 10 years. As with many networks, for, or so he is promised, his 13-year-old son, who in the night sky, there isn’t much otherworldly
though they didn’t build this world in a linear however, its audience is eroding, shrinking by 16% was taken away for reasons that aren’t clear. technology on display, at least not in the first
fashion: “It’s a little like doing a crossword puzzle. in 2015, according to Nielsen. In a strategy shift, Sarah Wayne Callies plays his wife, who makes handful of episodes.
You fill in stuff as the answers come to you.” USA went from airing fun, flashy original dramas dangerous compromises of her own in an effort “We couldn’t do ‘Independence Day’ or some
Though dead ends and dangling leads caused (and a failed experiment with scripted comedies) to keep her family safe. Ms. Callies, who had a other $100 million movie-scale idea,” Mr. Condal
plenty of frustration among “Lost” fans, the ABC into developing grittier serialized shows. Last prominent role on “The Walking Dead” for three says. “So what would this look like in a week-to-
series was a hit that spawned many imitators summer, a few months after the network bought seasons, draws a comparison between the dysto- week TV environment?”
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. Friday, January 8, 2016 | D5
Crime Fiction’s ‘Best Character’ Are there parts that really stick with you?
BY LUCY FELDMAN
This book has the line, “There’s no trap so
deadly as the trap you set for yourself.”…I
MICHAEL CONNELLY DISCOVERED “The Long think that is really a great thing to say
Goodbye” through the ultimate readers’ ta- about characters, especially in fiction. You
boo: He saw the movie first. want your main people to sometimes be
Long before launching his career as a their worst enemy and to trip themselves
crime novelist, Mr. Connelly was a Univer- up. I wrote a book and I turned it in with
sity of Florida construction-engineering ma- the title, “No Trap So Deadly.” It was a
jor who spent Monday nights watching mov- while back. I can’t remember why—I think
ies at the student union. After seeing Robert they said it sounded too noir, too ’40s or
Altman’s 1973 adapta- something—I changed the title. But someday
tion of Raymond I might come back to that.
Chandler’s novel, he
bought the paperback How do you create a classic character like Bo-
tie-in and his life as a sch or Marlowe?
writer began. “I You don’t give everything away. People who
bought all his novels, have read hundreds of these books like most
stopped going to class of us, they’re rarely fooled. So it’s not the
and just read them destination, it’s the ride. It’s the finessing of
back to back to back,” what to reveal and when, the internal work-
WSJ BOOK he says. “I went and ings of your protagonist…At the same time
CLUB changed my major to
journalism and cre-
as you feel intimately aware of this charac-
in 1953 and is considered by many to be his vate eye. He’s a classic outsider who looks
best work. in with a jaundiced eye on our institutions,
Mr. Connelly has built a vast Chandler especially the police department. I chose,
collection around that first paperback from because I spent so many years on cop beats,
the 1970s. “It’s probably the most important to use what I had and what I knew, so I
book I’ve read,” he said. made my guy a detective. Carrying a badge
We’ll be reading “The Long Goodbye” and a gun is hugely different from Marlowe.
over the next several weeks, with discussion Harry Bosch is a representative of the
questions online. Follow along online on the power and might of the state. But always
club’s Facebook page, on Twitter with my mantra was he’s an outsider with an in-
#WSJbookclub or sign up for our newslet- sider’s job.
ter. Next month, Mr. Connelly will join us to
discuss the book. An edited interview. Michael Connelly, at his home in Tampa, Fla., says of Raymond Chandler’s hardboiled detective Chandler writes in the first person. Why do you
Philip Marlowe: ‘He’s a classic outsider who looks in with a jaundiced eye on our institutions.’ favor the third?
This novel had a profound impact on you. What Initially I was afraid of first. It’s harder to
makes it so powerful? you still instinctively understand. Marlowe plane of work. His commentary is really hold stuff back. Chandler is pretty good at
I’d read tons of crime fiction and I loved says, “I was as hollow and empty as the subtle but it’s there, and some of that can doing that, but for the most part if you’re in
it, but nothing ever said maybe I’d like to spaces between the stars.”…In, like, 10 words, be pointed at today’s society. first person you’re kind of whispering to the
try to do this. There was an artistry in the he’s able to describe that feeling so well. reader, ‘This is what’s going on,’ so any time
book, this weird mix of cynicism and hope- What would you say to readers who struggle you hold something back you risk the reader
fulness that seems to be contradictory. He What do you hope readers will take away from with Chandler’s treatment of his female charac- feeling cheated…Maybe 10 books in, I
had a way of getting them sometimes into the novel? ters? thought OK, I’m ready to try to—accent on
the same sentence. I’d never been to Los An- Forty years later, it still holds up. When it There are aspects of Chandler’s writing that try—to emulate Chandler now. So I wrote
geles, I lived 3,000 miles away, but it evokes comes to writing at least, that’s the defini- don’t hold up, wouldn’t wash in today’s [two] books with Harry Bosch in the first
the place, this place of mystery and sun- tion of art: something that’s significant and world, and those areas are women and race. person, and they were quite a struggle…It’s
shine that was just intoxicating to me. can pierce you many years after it was writ- It becomes a little bit difficult to say I’m a hard to do Harry in the first person without
ten. On the one hand this is a classic pri- writer because of this guy without some coming off as a cheap Marlowe imitation.
What makes Chandler’s descriptions so striking? vate-eye novel, it’s an entertainment. But qualifiers…Certainly his view of women is
He empathically connects to the reader be- what makes Chandler and what makes most pretty clear…You can make excuses and say Would Bosch and Marlowe get along?
cause a description will be something you’ll crime writers today disciples of Chandler is it was of the time, but every writer is trying I think they’d get along—but there probably
never have read before or heard before but that he has another dimension, a higher to write something that will transcend time. wouldn’t be a lot of conversation.
FOR PUBLISHERS, winter is a relatively quiet sea- “Your Heart Is a Muscle the Size of a Fist”
son—a time when they can introduce gems that Sunil Yapa, Jan. 12
might otherwise be lost in fall’s crush of literary Editorial director Lee Boudreaux picked this debut
heavyweights and commercial fare. The buzziest ti- novel to launch her first imprint at Little, Brown
tles this season range from family dramas to ghost and Co. “I just got so blown away by the voice,” she
stories. Among the most notable are the latest said. The book is told from the perspective of seven
novel from Pulitzer Prize-winner Elizabeth Strout, a characters on a single day during the explosive
debut novel about the 1999 World Trade Organiza- 1999 World Trade Organization protests in Seattle.
tion protests and a new book from a rising literary The characters include 19-year-old Victor, who
star that straddles fantasy and reality. Here are six hopes to sell enough marijuana at the protest to
books to keep the winter doldrums away: buy a plane ticket; his estranged stepfather, the po-
lice chief; the finance minister of Sri Lanka; as well
“Mr. Splitfoot” as protesters and police officers who clash on a Se-
Samantha Hunt, Jan. 5 attle street corner.
Zombies are out, ghosts are in. Ms. Hunt, author of
“The Invention of Everything Else,” taps into the “Sudden Death”
cultural zeitgeist with a new novel blurring the nat- Álvaro Enrigue, Feb. 9
ural and supernatural. Teenage orphans Nat and This mind-bending novel made a splash in Latin
Ruth are on the verge of aging out of a group America and Europe, winning the prestigious Her-
home run by a corrupt, religious fanatic when they ralde prize in Spain. Now Riverhead brings it to the
meet a traveling con man and begin talking to the U.S. in an English translation. “It’s like if Hilary Man-
dead for money. tel and Roberto Bolaño and David Mitchell all got
together and wrote a novel,” said Mr. Enrigue’s edi-
“My Name Is Lucy Barton” tor at Riverhead, Laura Perciasepe. The book begins
Elizabeth Strout, Jan. 12 with a 16th-century tennis match between the radi-
Ms. Strout’s novel “Olive Kitteridge” launched her to cal Italian artist Caravaggio and Spanish poet
stardom with a Pulitzer Prize and a 2014 HBO ad- Quevedo, playing to the death with a ball made
aptation that won eight Emmy Awards. The book from the hair of beheaded Anne Boleyn.
has sold 1.5 million copies, according to Random
PHOTO ILLUSTRATION BY THE WALL STREET JOURNAL
House. Fans have been eagerly awaiting her latest: “What Is Not Yours Is Not Yours”
In this new novel, the protagonist is recovering Helen Oyeyemi, March 8
from complications after an operation when her In 2013, Granta named Ms. Oyeyemi on its star-
mother arrives, rekindling a troubled relationship. making, once-a-decade list of promising, young
British novelists. Her most recent novel, “Boy,
“The Expatriates” Snow, Bird,” earned ecstatic reviews. Critics called
Janice Y.K. Lee, Jan. 12 it “bizarre and brilliant,” and “the voice-over of a fe-
Ms. Lee’s 2009 debut, “The Piano Teacher,” a tale of ver dream.” Now Ms. Oyeyemi, whose writing is
two love affairs in midcentury Hong Kong, was a tinged with the strange and magical, offers up a
runaway hit, selling more than 400,000 copies in collection of short stories built around the idea of
the U.S., according to her publisher. Viking is hoping keys, literal and metaphorical. It opens with a baby
for a repeat performance with “The Expatriates.” left at a Catalonian monastery with a key on a
The new work, set in present day Hong Kong, looks chain around her neck.
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 | Friday, January 8, 2016 THE WALL STREET JOURNAL.
Slamming Doors
THE INTERVIEW
He’s removed all the laughs. Need- the End of the Morning,” is a comedy
less to say he got booed at the in a Fleet Street newsroom, drawing
first night, attacked by all the on your own early experience as a
critics and attacked in leading ar- reporter. Have you been in a news-
ticles in newspapers all over Ger- room lately?
many. So it’s not beyond the wit They’re much busier. Everyone has
of directors to do something new to work so hard these days! When
with it. I was on newspapers, after I left
university, you mostly didn’t work
Peter Bogdanovich turned “Noises that hard. You’d work hard some-
Off” into a 1992 movie, starring Mi- times in bursts, but there was a
chael Caine and Carol Burnett and lot of leisure to go out and have
transplanted from the British prov- drinks with your friends and sit
inces to Des Moines, Iowa. It got around the office talking. I don’t
lukewarm reviews and somehow think that happens now. There’s
didn’t capture the magic of the the- much less drinking, and no smok-
ater version. What do you think hap- ing. I felt when I was first a re-
pened? porter that I was practically
It didn’t work. It wasn’t Peter’s obliged to have a cigarette dan-
fault, I think he did a very good gling out of the corner of my
production with a very good cast mouth, but it’s actually very diffi-
indeed. It’s just an inherently the- cult because the smoke gets in
atrical thing. You’ve got to feel your eyes and you can’t see what
DOOR SLAMMERS: Gina Gershon, inset, in 2008’s ‘Boeing-Boeing;’ James Corden in ‘One Man, Two Guvnors.’ that not only the characters might you’re doing.
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. Friday, January 8, 2016 | D7
REVIEW
Anatomy of a WASP
From left,
TERRY TEACHOUT Peter Thomasson,
Carrie Lund and
Brendan Powers
The Cocktail Hour
Florida Repertory Theatre, Arcade
Theatre, 2267 First St., Fort Myers, Fla.
($45-$49), 239-332-4488, closes Jan. 27
NICKADAMS
comedy about John (Brendan Powers), a
youngish playwright who comes home to
Buffalo, N.Y., the city where he (and Mr.
Gurney) grew up, with a surprise up his
sleeve for his priggish parents: His new play throw the audience off the trail of Mr. Gur- ple role in the company’s 2011 revival of Mr. that she puts on the word “cheese” re-
is all about them. The title? “The Cocktail ney’s intentions. For this is a serious com- Gurney’s “Sylvia”). He also has a home-court minded me of Dame Edith Evans’s unforget-
Hour,” naturally—and it’s not a wholly affec- edy about a family whose members are at advantage: Three of his fellow ensemble tably preposterous reading of the line “A
tionate portrait, either. Part of the Pirandel- odds with one another but are too nice to members, Ms. Lund and Messrs. Powers and handbag?” in the 1952 film of “The Impor-
lian joke is that Bradley (Peter Thomasson), admit it save for John, who longs with all Thomasson, are in the cast, and they act as tance of Being Earnest.” You can’t get any
the martini-mixing patriarch in whose hand- his heart to break through the blank wall of though they’d known one another for de- funnier than that. Yet you never doubt that
some living room the action unfolds, didn’t gentility that separates him from his par- cades, which gives the show a striking air of she’s playing a real person, one who may
much care for his son’s previous plays. “Are ents. That’s why he’s written a play about artistic unanimity. The only outsider is Kate seem self-satisfied at first glance but has
people going to scream and shout in this them—and why Bradley is willing to pay Hampton, who plays John’s older sister, but clearly known her full share of sorrow.
one?” he asks. Well, he ain’t seen nothing him a good-sized chunk of cash if he’ll agree she fits in so well that you’d never guess All this is done with the lightest of
yet, as the well-mannered Bradley would not to let it be produced. she was a ringer. touches. At no time does Mr. Clavelli’s cast
never dream of putting it. I last saw “The Cocktail Hour” performed It isn’t easy to play genteel WASPs in a let you forget that “The Cocktail Hour” is a
Ann (Carrie Lund), John’s mother, has by Boston’s Huntington Theatre Company in lively way without stooping to over-broad comedy. The result is a show that keeps you
the best line, a two-way zinger aimed at an 890-seat theater whose Broadway-sized caricature. All praise, then, to Ms. Lund and chuckling—then puts a lump in your throat
drama critics who don’t get what her son is stage was a couple of sizes too big for the Mr. Thomasson for steering clear of that fa- at evening’s end. Who could ask for any-
up to when he puts WASPs on stage: “They show. Fort Myers’s 393-seat Arcade Theatre, tal trap: They portray the upper-middle- thing more?
don’t like us, John. They resent us. They by contrast, is just right, both for the play class complacency of Ann and Bradley in a
think we’re all Republicans, all superficial itself and for the staging. Mr. Clavelli, a way that is at once comic and sympathetic. Mr. Teachout is the Journal’s drama critic.
and all alcoholics. Only the latter is true.” longtime member of Florida Rep’s semi-per- A case in point is the way in which Ms. “Satchmo at the Waldorf,” his play, opens
But “The Cocktail Hour” contains plenty of manent ensemble, is as adept a director as Lund delivers her innocuous-sounding first Jan. 16 at Chicago’s Court Theatre. Write to
other laughs, more than enough to briefly he is an actor (he played the challenging tri- line, “I’m bringing cheese!” The fluty spin him at tteachout@wsj.com.
Anna Maxwell
The Mine Wars
Tuesday, Jan. 26, 9 p.m. on PBS
Martin and David
Threlfall
“The Mine Wars,” an “American 1920, when the detectives em-
Experience” documentary, not sur- ployed by the mine owners set out
prisingly begins with one of the to evict striking miners near the
great names in American labor his- town of Matewan. The resulting
tory—“Mother” Jones, as Irish immi- battle left the town’s mayor, two
grant Mary Harris came to be called Matewan residents and seven of
in the course of her intrepid service the detectives dead.
in the West Virginia miners’ battle This was only the beginning. A
for the right to a union. year later, miners—infuriated when
“I have no home except where company guards assassinated a
there is struggle,” she said. She prominent union sympathizer—
proved it, too, in the course of her formed a protest army of thou-
tireless efforts to stiffen the spines sands. As they prepared to march,
of miners daunted by the prospect they were met by 3,000 mine
of punishment by blacklisting and guards and deputies. The resulting
loss of all livelihood, miserable as it conflict, to be known as the Battle
was, if they violated the iron law of Blair Mountain, lasted three
set by mine owners in southern days, and ended only when federal
West Virginia, the toughest of all troops arrived and intervened.
places to form a union. Instead of One of the most compelling as-
acting like “cringing serfs,” she told pects of this documentary is its ex-
them, they should defy the bosses traordinarily detailed chronicle of
and join the United Mine Workers the miners’ growing militancy. The
of America. men had moved on from the kind of
But this documentary by Randall passive acceptance that had caused
MacLowry, producer/director, and “Mother” Jones to implore them not
Mark Zwonitzer, writer, moves on to behave like cringing serfs. They
Agents of Evil
from that beginning to a remark- became an organized, battle-hard-
ably detailed view of this struggle, ened force, willing to risk all to get
which lasted from the early 1900s themselves a union. But it was not
to the 1930s. It is a history, above only the men who enlisted in this
all, of the wars involved, some of war. The women, the filmmakers
REVIEW rene precincts of Herefordshire, England. She’s
portrayed by the splendid Siobhan Finneran, a famil-
them extensive armed conflicts be-
tween the increasingly militant min-
make clear, were unyielding combat-
ants. Mine owners’ scabs sent in to
DOROTHY RABINOWITZ iar face from “Downton Abbey” as the brooding maid, ers and the armies of private break a strike found no more deadly
O’Brien, best remembered for deploying a slippery guards, hired by mine owners, who enemy greeting them than the min-
soap bar designed to cause Lady Cora’s catastrophic policed the company towns in ing-town women, who assaulted
Midwinter of the Spirit fall while pregnant. “Downton Abbey” being “Down- which the miners worked. them not with guns, but with weap-
Monday, Jan. 11, begins streaming on Acorn.tv ton Abbey,” it was an act of which O’Brien soon re- As the drive for a union grew, ons from their kitchens and perhaps
pented. In “Midwinter of the Spirit” Ms. Finneran is the violence increased, with shoot- the most fearful weapon of all, the
again in the role of malevolent plotter, only this time outs like the one that took place in depths of their fury.
Heroines don’t come much more tormented than as a devotee of a cause of far darker significance:
the one in this impressively chilling tale of an exor- namely, the destruction of Christianity, and here there
cism, nor is she remotely suited for battle against the are no second thoughts. Ms. Finneran’s Angela is pos-
complex of diabolical forces with which she contends. itively incandescent with the glow of fanaticism and
Therein lies the magic of tales like this. A country confidence in the triumph to come some day.
vicar in training to become an exorcist—or in the There is no missing the reference to current
more delicate official description, a “deliverance min- events in her character and in those of her fellow
ister” for the Church of England—Merrily Watkins plotters, who believe, as one of them trumpets, that
(Anna Maxwell Martin) suddenly finds herself called Christianity’s days are over—a new order will tri-
upon to help the police find answers to a frightful umph and govern. There is no missing, either, the in-
murder. tended horrific familiarity of the swordlike knives,
Why the police think she could be of help in this held to a captive’s neck, of a kneeling victim—an ex-
daunting work is something of a puzzle to her, as it tended scene of this—facing death by beheading. All
must be to us, given that the vicar appears, from the that’s missing is the executioner’s black mask and the
outset, to be in need of deliverance of some kind her- British-accented pronouncements of Jihad John. If
self. She’s a recent widow with a strangely tenuous that isn’t reminder enough of the world today, there’s
FROM LEFT: ACORN TV; LIBRARY OF CONGRESS
relationship with her nubile teenage daughter. Wan the wise expert on demonic forces who tells Merrily
and wide-eyed, her voice a whisper, Merrily is an im- that evil comes in many forms—from people crashing
probable warrior against evil. Not that it matters, airplanes into buildings, for instance.
since she is, most of the time, a victim—and since, None of the contemporary references dilute the
more to the point, the agents of that evil are far and show’s determined effort to hew to a story about de-
away the chief life force of this drama whose unsubtle monic enemies of Christianity planning to take over a
horrors make themselves felt early, and steadily, and church housing sacred Christian relics—enemies ex-
with greater effect as the story grows more complex, pert at recognizing the weak and the vulnerable, who
the aims of the malevolent forces, clearer. can be turned into allies. It’s a saga packed, like most
No one is clearer than Angela, a conspicuously se- in its genre, with ominous portents from obscure bib-
ductive agent of evil and one of the most command- lical sources and it is, from the beginning to the Coal miners in front of a mine entrance in Red Star, W. Va.
ing characters in this three-part series set in the se- shocking end, an unfailingly potent one.
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D8 | Friday, January 8, 2016 THE WALL STREET JOURNAL.
SPORTS
The NFL’s Cheesy Movie Buffs
BY KEVIN CLARK
Should
Students What Ever Happened
Pay For To Baby Saban?
No babies born last year in the Nicholas became less popular.
A PEEK AT THE BALANCE SHEET of are named for the Crimson Tide
Clemson’s athletic department is all legend Paul William “Bear” Bryant.
it takes to see the school is sitting At last count, the number was 620,
on an untapped source of revenue: said Olivia Arnold, the museum’s
its students. first name Saban, according to the namesake coordinator. “We don’t
Clemson, like most schools, Alabama Center for Health Statis- have a Saban database—yet,” she
brings in more money than ever tics. Two years later, when Saban said. “Which is maybe something
from athletics. But even its record won his first title with the Crimson we need to look into.”
$74 million of reported athletic reve- Tide, there were four Sabans born. Some parents have come up
nue last year was below average Every year since then has seen with more creative ways to honor
compared with other universities in more baby Sabans—until 2015. the Alabama coach. Hospitals in
the increasingly rich world of big- The year started with Alabama Tuscaloosa County have records of
time college sports. Clemson students rejected a plan to pay a fee to the athletic department. losing in the College Football Play- babies named Sabine and Sabiana
That’s why Clemson went search- off semifinal and ended with Ala- since 2007.
ing for more. And the school didn’t October to the school’s athletic riated with one aspect of it.” bama winning in the same round to But even in the county that’s
have to flip sofa cushions for spare council. But it was never proposed The students objected by asking advance to Monday’s national home to the Crimson Tide, only one
change. It turned out there was a al- to Clemson’s board of trustees for why their money was necessary championship. In between, though, newborn since then was given the
ready a gold mine on campus. approval because it was clear that when there is so much other revenue no one named Saban was born into name Saban. The baby’s middle
Clemson was the only public uni- the overwhelming majority of stu- being pumped into college sports. Alabama fandom. Even the name name? Bryant. —Ben Cohen
versity in the Atlantic Coast Confer- dents were against it. One survey Clemson has benefited as much as
ence last year—and one of a dwin-
dling number across the country—
conducted by the student govern-
ment put the opposition at 85%.
any ACC school by that revenue ex-
plosion. In the 2014 fiscal year, the
It’s a Boy!
not charging a student fee that goes “Based on their input, the deci- league’s new television deal pushed A breakdown of babies (possibly) named after Alabama coach Nick Saban since 2007:
to the athletic department. Each un- sion was made not to go forward,” a Clemson’s conference payout to YEAR NICHOLAS NICK SABAN
dergraduate paying up to $350 university spokeswoman said. $21.3 million, more than any other 2015 68 2 0
would have brought in $6 million Clemson’s administrators say member’s share, according to federal 2014 86 2 3
per year. they weren’t surprised that cash- tax filings. Since then, the school has 2013 78 1 3
Then something unusual hap- strapped college students rejected a broken ground on a privately funded 2012 80 1 4
pened. Months of talks about a po- new fee. But they were taken aback $55 million football building.
2011 94 4 2
tential sports fee broke down after for another reason: Those students To help pay for rising athletic
many Clemson students asked a wouldn’t have been the ones footing costs, many schools lean on students 2010 118 3 2
question that often goes overlooked the bill. who don’t play sports. Student sub- 2009 119 4 4
when it comes to the infusion of As it was discussed, the addi- sidies have brought in more than $10 2008 143 2 0
cash in college sports: Why? tional $350 would have been levied billion over the last five years, ac- 2007 164 5 2
“We told them point blank that only on incoming students who cording to the Chronicle of Higher Source: Alabama Center for Health Statistics
we didn’t see any need for students weren’t yet in college—yet Clemson’s Education, while revenue from stu-
to pay the fee,” said Maddy Thomp- student government still shot it dent fees at other ACC schools range
son, the president of Clemson’s stu- down.“I think they were looking out from $1.9 million to $13.2 million.
dent government at the time. for their cousins, brothers and sis- Radakovich initiated conversa-
Their opposition set off a series ters—people who they know and are tions about the student fee, he said,
of events last school year that ended looking to come to Clemson,” said because of what he called the in-
with Clemson’s athletic department athletic director Dan Radakovich. creasing costs of business in college
quietly backing away from the idea. Clemson seems like an odd school sports, such as higher prices for in-
School officials said this week that for a mutiny against mushrooming surance, travel and medical ex-
the concept has been tabled. sports costs. It spends less on athlet- penses.“We have more revenue com-
Clemson doesn’t seem to be suf- ics than several ACC schools and ing in, and we have more expenses
BRYNN ANDERSON/ASSOCIATED PRESS
fering. The Tigers play for the na- much less than almost every South- going out,” Radakovich said.
tional championship Monday. The eastern Conference university. Clemson’s officials are now con-
only thing between Clemson and its Even the people who were vocal sidering another option. While there
first title since 1981 is Alabama—a in their objections say they’re huge haven’t been discussions about stu-
school with annual sports revenues sports fans. Thompson, the former dent fees, the school says it may
that are twice the size of Clemson’s. student-body president, comes from charge for student tickets—some-
Clemson’s surprise season comes a Clemson family and plans to fly thing many schools already do.
after extensive conversations last across the country for Monday’s Radakovich said those conversations
year about the fee. It was debated game. “Everyone loves the university are still in the early stages
with the student government for and loves athletics,” she said. “But “I don’t know that the need has
months before it was presented last you can love something and be infu- changed,” he said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
MANSION
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HOMES | MARKETS | PEOPLE | UPKEEP | VALUES | NEIGHBORHOODS | REDOS | SALES | FIXTURES | BROKERS
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, January 8, 2016 | M1
Hillcrest
North Park
Bankers Hill
Balboa Park
Downtown
HEY STUDIO
DOWNTOWN More than BANKERS HILL The HILLCREST The diverse GOLDEN HILL A local SOUTH PARK After a NORTH PARK Craft
9,000 condo and apart-
ment units are in the pipe-
median sale price per
square foot rose 30%
neighborhood is home to
many restaurants, cafes, San Diego real-estate agent says
she now has clients who
gut renovation, a 1906
home is on the market
breweries and lively open-
walled restaurants have at-
line for development. here from 2013 to 2015. bars and clubs. bicycle to work. for $1.295 million. tracted new residents.
The building is downtown San Diego, an area condos and hotels will soon join the skyline.
BY CANDACE JACKSON
with a seedy past. The median sale price in the Restaurants with upscale comfort-food menus
neighborhood last year was $741,500, according and hidden speakeasy bars line revitalized street
A 41-STORY LUXURY CONDO BUILDING is on to real-estate website Trulia. fronts. Though downtown’s revitalization has
the rise. Boasting a screening room, a swimming San Diego has long been a car-centric city, had several waves over the years, the latest is
pool and a boat-share program, its 215 units will dominated by suburban-style subdivisions and higher-end and picking up quickly post-reces-
soon be going on the market at prices starting gated communities. Now, that’s changing. Cranes sion. The population of downtown is about
at $1.4 million. downtown mark where new office towers, luxury Please turn to page M6
INSIDE
LUXURY IN THE BACK ALLEYS OF BEIJING
Well-heeled expats in search of authenticity are increasingly seeking out the historic courtyard homes that line
Beijing’s narrow alleyways. But century-old structures have their drawbacks: chilly winters and finicky plumbing.
BY ALYSSA ABKOWITZ
Email: privateproperties@wsj.com
PRIVATE PROPERTIES WSJ.com/Mansion
CLOCKWISE FROM TOP LEFT: MICHAEL IZQUIERDO/BEVERLY HILLS AERIALS; RICH KAPLAN; DANA HOFF; FELIPE ARIANO
dashian, stayed in the pent- comment. $3.6 million for it, according to has two bedrooms and mea-
house for eight weeks in 2009 In 2010 the unit was pur- public records. Mr. Harmsworth sures about 1,880 square feet,
while filming “Kourtney & chased by literary agent Es- then renovated the unit. Mr. Miller said. The unit is be-
Khloé Take Miami,” according mond Harmsworth, who paid The 10th-floor penthouse ing sold fully furnished.
Mediterranean Miami Beach Home With Private Dock Lists for $27.5 Million
A waterfront home in Miami after his company went public
BATHING SUITS & Beach is asking $27.5 million. in 2000, and purchased the
The eight bedroom house, property in 2004 for $3.5 mil-
CHAMPAGNE FLUTES which measures roughly lion. He demolished the existing
Oceanfront Residences in Miami from $2.5 Million 14,600 square feet, was com- home on the site and said he
(305) 521 - 1642
pleted in 2009, according to spent nearly $11 million building
TheResidencesSunnyIslesBeach.com listing agent Nelson Gonzalez a new one.
ON SITE – SALES LOUNGE of EWM Realty International. Mr. Browning, 55, said he is
15701 Collins Ave. Sunny Isles Beach, FL 33160 The roughly ½-acre lot on downsizing now that two of his
North Bay Road has about 124 children are heading to college.
feet of frontage on Biscayne In addition, he noted that with
Bay and a private dock, he the hot market on North Bay
said. Road—“within walking distance
The Mediterranean-style of all the craziness” of South
The Ritz-Carlton Residences, Sunny Isles Beach are not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C., or its affiliates (“Ritz-Carlton”).
Sunny Isles Property Venture, LLC uses The Ritz-Carlton marks under a license from Ritz-Carlton, which has not confirmed the accuracy of any of the
statements or representations made herein. home has two courtyards, a Beach—now seems like the
ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT
REPRESENTATIONS, MAKE REFERENCE TO THE DOCUMENTS THAT ARE REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED gym and a wine cellar, Mr. right time to sell.
BY A DEVELOPER TO A BUYER OR LESSEE.
The Developer is Sunny Isles Property Venture, LLC which has a right to use the trademark names and logos of Fortune International Group and Chateau Group. This
is not an offer to sell, or solicitation of offers to buy, in states where such offer or solicitation cannot be made.
Gonzalez said. Outside, an in- The seller is Stuart Brown- gies, which helps companies
The rendering contained herein is an artist impression, conceptual interpretation, proposed only and merely intended as illustration. No guarantee is made
that the described features, services, amenities or facilities will be available or built. Developer reserves the right to make any modifications, revisions or
finity pool and Jacuzzi over- ing, founder of San Francisco- manage databases. Mr. Brown- See more photos of notable
withdrawals in its sole discretion and without prior notice. All improvements, design and construction are subject to first obtaining permits and approvals
for same by the relevant authorities. look the bay. based Embarcadero Technolo- ing said he moved to Florida homes at WSJ.com/Mansion.
many posibilitie
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THE WALL STREET JOURNAL. Friday, January 8, 2016 | M3
MANSION
INSIDE STORY
BY CANDACE TAYLOR 2
1
WHEN KIM MCCULLOUGH moved
to New Jersey from California to
take a job as the vice president of
marketing for Jaguar Land Rover
North America, she looked for a
home for herself, her husband,
their dog—and an expanding vin-
tage-car collection.
In 2011, she and her husband,
Mitch, both car enthusiasts, pur-
chased an 11-acre farm in Morris
County in northern New Jersey for same model the McCulloughs own.
about $1 million that had a 19th- When they first walked into the
century stone farmhouse and a 150- house, “it had a very comforting
year-old barn, among other small feel,” Ms. McCullough recalled. “You
buildings. could immediately picture yourself
“We thought, ‘Oh how romantic; in the winter, with the fireplace.”
we can store the cars in the barn,’” But over the years “a lot of
Ms. McCullough, 55, said. “Then things had been added to it,” she
you realize, it’s a barn—critters said, including a large, “overbear-
come in and out, and the winters— ing” addition done in the 1980s.
it just wouldn’t work.” 3 4 They removed that addition, in
So in addition to their meticulous the process discovering a brick
restoration of the house, they ended doorway that had been hidden.
up building a climate-controlled ga- They then repaired and resealed
rage for their collection, which now the home’s original stone, and
numbers about 10 cars, including a added a new wing with a master
1954 Jaguar XK120. bedroom, library and patio, using
The new building has an epoxy- stone similar to the original.
paint floor and walls covered with “People come and look at this
photos and auto memorabilia, with 5 and think it’s the old part,” Mr.
plenty of shelf space for equip- McCullough said of the new wing.
ment and spare parts. Each car has “It’s two years old.”
its own charging station to keep The home’s original exterior
batteries from dying between out- walls are visible in parts of the
ings. Wide doors at either end al- new rooms, including the master
low easy access. In addition to ral- bath. “It’s rustic but beautiful
lies and other events, the two stone, so you want to use it,” Ms.
drive their cars on local roads. REVVED UP McCullough said.
“We exercise them all regularly,” 6 8 1. The restored They used reclaimed barn
quipped Mr. McCullough, 57 years 19th-century wood—from other properties—to
old, an automotive journalist. farmhouse, with build stairs down to the library,
The couple spent two years and addition on where built-in shelves hold their
some $400,000 to upgrade the es- right. 2. Mitch automotive reference books.
tate, including renovating the and Kim Mc- They designed the master bed-
house and other buildings, and Cullough 3. The room around a piece Ms. Mc-
building the garage at a cost of couple in a Cullough already had: a stall door
about $70,000. They also bought Jaguar XK120. from a Kentucky horse farm. “I
an adjacent parcel, bringing their 7 4. The 150- thought, ‘I love that door, I’m go-
total property to 40 mostly year-old barn. ing to figure out what to do with
wooded acres—perfect for their 5. A new ga- it,’” she recalled. Now it serves as
two mastiffs, Chapman and Hazel. rage holds the the door to the master closet.
JESSE NEIDER FOR THE WALL STREET JOURNAL (10)
The couple said they took care car collection. They also restored the barn, re-
to build the garage so that it re- 6. The master placing the roof and redoing the
sembles the nearby barn and fits bedroom in new lighting. The space is largely un-
in with property—where wild tur- addition. 7. A adorned except for a 1957 neon
keys wander amid the chicken vintage ad. 8. Pegasus—a logo of Exxon Mobil—
coops and sheds. 9 10 A ‘50s movie they bought from an antique
They wanted “to do things that poster leads to dealer in California. Ms. Mc-
made sense and were also respectful the library. 9. Cullough said the barn is a great
of the original building,” said Ms. An original space for throwing parties, but vis-
McCullough. It’s the same approach brick doorway. itors always want to see the cars.
they take in restoring their cars. 10. A display of “When we have guests, this is
The couple met in the early car photos. another room,” Mr. McCullough
1990s, when both worked for said of the garage. “Everyone
Mazda, and married in 1994. They In addition to the Jaguar XK120, Their love of automobiles also is ers that Ms. McCullough had re- comes out here.”
started collecting vintage cars which they recently brought to It- evident inside the four-bedroom stored and framed. Also on display Ms. McCullough added: “It’s
about 10 years later. “I resisted it aly for the Mille Miglia rally, they house, a Dutch Colonial they be- are photos from the 1950s and been so great being able to have a
for a while, and then I came over to own a powder-blue Jaguar E-Type, lieve was built in the early 1800s. 1960s—like the black-and-white dedicated building like this. It’s be-
her side,” said Mr. McCullough. a slender 1960 Lotus 18 race car Throughout the house, the walls picture of Elizabeth Taylor and Mi- ing able to bring together every-
Now, “we’ve gone crazy.” and a 1956 Land Rover. are decorated with 1930s ad post- chael Todd in a Jaguar XK120, the thing that we love so much.”
SPECTACULAR THREE TO FIVE BEDROOM HOMES FROM 3,700 TO 14,000 SQUARE FEET
WITH A SUITE OF EXTRAORDINARY AMENITIES
STARTING AT $5,000,000
ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO
THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. THIS IS NOT INTENDED TO BE AN OFFER TO SELL, OR
SOLICITATION TO BUY, CONDOMINIUM UNITS TO RESIDENTS OF ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION CANNOT BE MADE OR ARE OTHERWISE PROHIBITED BY LAW, AND YOUR
ELIGIBILITY FOR PURCHASE WILL DEPEND UPON YOUR STATE OF RESIDENCY. THIS OFFERING IS MADE ONLY BY THE PROSPECTUS FOR THE CONDOMINIUM AND NO STATEMENT SHOULD BE RELIED
UPON IF NOT MADE IN THE PROSPECTUS. THE INFORMATION PROVIDED, INCLUDING PRICING, IS SOLELY FOR INFORMATIONAL PURPOSES, AND IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR
NEW YORK RESIDENTS THE COMPLETE OFFERING TERMS ARE IN AN OFFERING PLAN AVAILABLE FROM THE SPONSOR FILE NO. CD15-0055. (*NOTE THAT SPONSOR AND SELLER ARE THE SAME.)
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M4 | Friday, January 8, 2016 NY THE WALL STREET JOURNAL.
MANSION
JUMBO JUNGLE | ANYA MARTIN
CHRIS GASH
If both spouses’ scores are cash or assets to the bor-
lower than 740, the math can rower, Mr. Banfield says.
still work in favor of a single • For sale by both own-
borrower, Mr. Walsh says. ers. Both spouses also don’t
And even if the difference in spouses stay off the mort- [mortgage] loan,” Mr. Carson straightforward job with reg- lender’s income require- have to be on the mortgage
credit scores is slim—one gage is to keep their finances says. “This keeps my wife’s ular earnings on W2 state- ments, Mr. Carson says. Co- or on the title to receive the
spouse has 700, the other separate, says Mathew Car- credit clean if we want to ments and enough income to owning the home and having full $500,000 capital-gains
699—that one point can son, a mortgage broker with buy a car or anything like qualify, it could reduce both names on the note ben- exclusion on their tax return
make a difference in the San Francisco-based First that using her credit.” stress to not have to assem- efits a nonemployed, stay-at- following a home sale, Ms.
loan’s interest rate, Mr. Capital Group. In some cases, A third reason for borrow- ble all the documentation re- home spouse. The mortgage Canning says. However, the
Walsh says. However, some they may just have pur- ing alone occurs most often quired to also qualify the helps maintain a credit score couple must file a joint re-
couples will need both in- chased the property before with jumbo mortgages, self-employed co-borrower, that could be important turn, both must have used
comes to qualify, especially marriage and don’t want to where borrowers are more Mr. Banfield says. later, especially in the event the home as their primary
for jumbo mortgages, which refinance, but it could also likely to be self-employed Before one spouse goes of a divorce or death of a residence for at least two of
have bigger balances than be a strategic decision so and/or have other more com- solo on the loan, there are spouse, Mr. Banfield says. the past five years (living to-
government-backed loan lim- that the spouse without the plex income breakdowns, in- two things to keep in mind. “If you take yourself off gether before marriage also
its of $417,000 in most mortgage credit liability can cluding bonuses and commis- First, a co-borrower doesn’t the grid and aren’t on a counts), and neither spouse
places and $625,500 in some qualify for other big-ticket sions, says Bill Banfield, vice have to have income to be on mortgage or car loan, you can have used the exclusion
high-price areas, he adds. purchases, he adds. president of Quicken Loans. the note—as long as the may not retain your credit on a different home within
A second reason some “I’m the only one on my If one spouse has a other spouse meets the history.” he adds. the past two years, she adds.
For Sale or Lease: Private floor in a white glove building on Central Park South.
Encompassing 5,000+ square feet, this mint condition 5-bedroom, 5.5 bath apartment
features state-of-the-art finishes and a 70-foot expanse of windows overlooking the park.
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©2016 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. Engel & Völkers and its independent License Partners are
Equal Opportunity Employers and fully support the principles of the Fair Housing Act.
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THE WALL STREET JOURNAL. Friday, January 8, 2016 | M5
MANSION
BALANCE SHEET
COSTS
Land
$590,000
Professional fees
$162,000
Site clearance /
groundwork
$152,000
Steel framing,
DYLAN THOMAS FOR THE WALL STREET JOURNAL (6)
block, insulation
$93,000
Metal cladding,
translucent panels
$54,000
Windows, doors,
concrete floors
$72,000
FULLY FUNCTIONAL Steve and Tracy Fox, above, in their dining area. The living room has a
BY RUTH BLOOMFIELD
bridge, top right, that connects the home’s wings. Vintage fixtures in the bathroom, above right. Utility hookups,
Left, decorative metalwork covers air vents. Below left, the kitchen and dining room feature ex- plaster, decorative
IT TOOK FIVE YEARS, a budget posed block, birch plywood and a stainless-steel work top. Below, the exterior courtyard. finishes
that doubled, and months living
like “ragtag gypsies” before a Lon- $227,000
don couple could finally move into
their dream home built on the site Stainless-steel
of a former junkyard. kitchen island
Tracy and Steve Fox were hap-
pily settled in the fashionable $8,800
southeast London neighborhood of
East Dulwich. But they had long Vintage bathroom
fantasized about building a modern fixtures
home. In 2009, during a chance
conversation with a friend, Mrs. $2,200
Fox learned that there was a dis-
used junkyard full of scrap metal Labor
languishing behind the area’s main
shopping street, Lordship Lane. In $69,000
2010, they paid £400,000, or about
$600,000, for the 3,000-square-foot Misc.
junkyard even though they didn’t terintuitive style that Mr. Fox de-
have building permits in place. scribes as “comfortable Brutalism.” $43,000
“It was a ridiculous amount of Mr. Tuckey’s solution was a
money and a real gamble,” said long, low two-story house measur- TOTAL:
Mrs. Fox, 55. To save money, the ing about 2,800 square feet. The
couple bought three vintage camp- central part of the house contains $1.47million
ers and moved onto the site with a double-height living room and
their children Betty, now 25, and kitchen. Two wings contain three into a rented home, and the 18- pin legs purchased online. They admit their initial $450,000
twins Alfy and Ruby, 19. family bedrooms, three bathrooms, month build began. The “sleeping wing” contains construction budget was unrealis-
They hired the architect Jonathan a music room and the workshops. The house is partly constructed the couple’s master bedroom, tic—the home ended up costing
Tuckey to draw up plans for a fam- At the center of the site, over- using concrete blocks clad in a where a childhood painting by $900,000. As the cost of the project
ily house with two workshops. Mr. looked by all the main rooms, is an corrugated cement fiberboard. The Betty is pinned above the bed. Up- ballooned, they ran into financing
Fox, 50, is a prop painter for films, open courtyard. walls overlooking the courtyard stairs are the twin’s bedrooms, delays, which held up the project for
including the coming “The Hunts- Initially their local council was are steel framed and studded with plus a family bathroom, fitted with four stressful, frustrating months.
man: Winter’s War,” starring Chris unconvinced—Mr. Fox recalls one huge windows. an original art deco pink bathtub. The sleepless nights they en-
Hemsworth and Charlize Theron. planning officer complaining that Polished-concrete floors down- The “working wing” has space dured have been mitigated by their
Mrs. Fox enjoys art and upholstery. their designs “looked like a shed.” stairs continue the industrial for two large, light workshops. happiness with the completed
As fans of modern architecture But eventually, after they made theme, and a stainless-steel work The family finally moved into house, which they believe is now
who wanted to pay homage to their some subtle changes to the roof- top and charcoal-black cupboards their long-awaited home in October valued between $2.65 million and
site’s industrial past, the Foxes line, building permits were outfit the kitchen. A welder built 2014, along with their two whippets, $2.95 million. “It has been,” said
asked Mr. Tuckey to create a coun- granted. In 2013 the family moved the narrow dining table using hair- Queenie, now 4, and Jet, 5. Mrs. Fox, “a bit of a bumpy ride.”
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
M6 | Friday, January 8, 2016 NY THE WALL STREET JOURNAL.
MANSION
Continued from page M1 area in north San Diego A big impetus for the from the tall buildings of the tourist attractions. London Group Realty Advi-
30,800 residents—a 76% in- County full of gated develop- move was so that Ms. Antley, Civic Core to the lively cafes “When I moved here in sors, says that more re-
crease since 2000—and more ments and large, luxury es- a deputy attorney general and bars in the Gaslamp and 1983, the only reason to go cently, residential developers
than 9,000 apartment and tate homes. for the state of California, Little Italy. Some sections downtown was the Old Spa- began looking seriously at
condo units are in the pipe- A few months ago, Huey could give up her 40-minute are still gritty, with clusters ghetti Factory,” says Chris- downtown, partly because
line for development. and Suzanne Antley sold commute and walk to work. of homeless people and busi- tine Baker, an agent with suburban areas ran out of
Brad Termini, the co-CEO their home in the northeast “We maybe use the car once nesses like check-cashing Willis Allen, a Christie’s affil- developable property for
of Zephyr, a San Diego-based edge of San Diego and a week for an hour,” says Mr. stations and pawnshops. iate, referring to the chain master-planned communi-
developer of high-end hous- bought a 1,000-square-foot Antley, a vice president of a The city’s large Navy pres- restaurant. She moved to the ties, as well as changing life-
ing, said buyers want to be condominium in the Marina data analytics company, who ence boomed along the wa- Marina district after raising style preferences. In 2004,
able to walk to neighborhood district downtown, a neigh- works from home. “We’re terfront during World War her children in the suburbs. opening of Petco Park, the
amenities. “We’re seeing a borhood known for its high- kicking around the idea of II, but residential develop- In the mid-1980s, the baseball stadium, brought
real flight out of suburbs like end condos, parks and tour- buying a Vespa.” ment flourished in the sub- opening of the Horton Plaza with it another wave of con-
Rancho Santa Fe because of isty Seaport Village. The Downtown San Diego, an urbs. For decades after, shopping mall and, later, the dos and apartments. Then
the lack of walkability and couple paid about $600,000 area of about 2.6 square downtown had a seedy repu- city’s convention center, the recession hit, halting
the high cost of maintaining for their condo, which is miles along the San Diego tation, its large homeless marked the first major push nearly all development.
those estates,” he said, refer- near a park where they can Bay, consists of several dis- population mixed in with of- to revitalize downtown. Gary Over the past few years,
ring to a wealthy suburban walk their dog. tinct neighborhoods, ranging fice buildings and a few London, president of the strong job growth in the sci-
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Phoenix
The Sonoran Desert of the American Southwest, that is. With some of the greatest year-round weather on earth,
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The Residences at The Ritz-Carlton, Dove Mountain are not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C. Dove Mountain Investors, LLC uses The
Ritz-Carlton marks under license from The Ritz-Carlton Hotel Company, L.L.C. Access to and use of the recreational amenities of The Golf Club at Dove Mountain requires payment
of monthly Club membership dues. This is not an offer of solicitation where prohibited by law. Prices, plans, amenities, availability and improvements referenced herein are subject
to change without notice. Sales are conditional upon buyer’s receipt and acceptance of the Arizona Subdivision Public Report.
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THE WALL STREET JOURNAL. NY Friday, January 8, 2016 | M7
MANSION
ence and technology sectors, Homeowners are rehabbing spent the past few months Hill, upscale homes mingle
and a trend toward urban Craftsmans and Spanish Co- gut-renovating it and re- with rundown properties in
living, are bringing buyers lonial-style homes that are cently put it on the market need of attention.
and developers back. “All of within walking distance of for $1.295 million. Developer Real-estate agents say the
the sudden the market is cafes with kombucha on tap. Mr. Termini’s latest project biggest issue for buyers is
waking up,” says Nat Bosa, a Sally Schoeffel, a real-es- is a 60-unit building along that there aren’t enough
Vancouver-based developer tate agent with Sotheby’s In- Balboa Park with large ter- homes on the market, driving
who is one of the largest ternational Realty, first races and bathrooms with gi- up prices. According to
property owners downtown. moved to Golden Hill in 1998 ant marble-slab walls. Like Trulia, the real-estate web-
©2015 California Closet Company, Inc. All rights reserved. Franchises independently owned and operated.
He recently broke ground on in search of a historic home. Pacific Gate, the building’s site, the median sale price
Pacific Gate, the 41-story She and her husband have prices are pushing new terri- per square foot in Bankers
building with the boat-share since spent 18 years and tory for the condo market, Hill has risen by 30% be-
program. over $350,000 renovating a ranging from $1.5 million for tween 2013 and 2015. In sub-
San Diego mirrors a na- 1927-era Mediterranean-style 1,800-square-foot two-bed- urban Rancho Santa Fe, the
tional urban revitalization house. In the past few years rooms to nearly $6 million median price per square foot
that has played out in cities she says she has noticed for penthouses just under rose 10% in the same period.
like Louisville, Portland and more young families moving 5,000 square feet. There is no sign of a slow-
Los Angeles, with millennial in. “Now I have clients who Residents say downtown down. Ms. Michell, of the
and Gen X buyers, as well as bicycle to work or catch the and its surrounding neigh- Downtown Partnership, says
empty-nester baby boomers, bus,” says Ms. Schoeffel. borhoods still face chal- that over the next 30 years,
turning away from car com- Melissa McKinstry and lenges. Though public trans- the city’s population is fore-
mutes and higher-mainte- Doug Kipperman, who live in portation options have cast to grow by an additional
nance suburban homes to South Park in a Craftsman- improved, with an expanded 1 million residents.
more walkable, denser city style home they renovated, bus system and a trolley that Marsha Sewell, an interior
neighborhoods. Developers say the neighborhood feels goes all the way to the Ti- designer and general contrac-
and real-estate agents say like it evolved organically juana border crossing, some tor, moved downtown in 1991
the latest wave of urban- and maintains a friendly say it isn’t extensive enough to convert a 100-year-old
bound residents tend to be vibe. Ms. McKinstry teaches to allow for a carless life- mixed-use building into a sin-
wealthier and older. yoga at a studio within walk- style. Kris Michell, president gle-family home. Then she
Near downtown, along ing distance, and a bluegrass of the Downtown San Diego purchased another historic California Closets creates custom storage
Balboa Park—a 1,200-acre band that lives across the Partnership, says early this building for $600,000, re- solutions for every room in your home.
green space that is home to street performs a concert in year they are launching a habbed it and sold it for $2
Visit our showroom or call today to arrange your
15 museums and the San Di- their yard every year. “Peo- new urban-transport system. million. A few months ago
ego Zoo—once sleepy neigh- ple really care about what’s The on-demand electric vehi- she moved into a 3,200- complimentary in-home design consultation.
borhoods like Golden Hill, going on here and maintain- cles can be hailed via smart- square-foot condo she paid
South Park and North Park ing it,” says Mr. Kipperman. phone app, like an Uber. $1.075 million for and has 212.517.7877
U PPE R EAST SI DE
are undergoing a renais- Developers are picking up The city also has been just completed renovating. TR I B ECA & B ROOKLYN646.486.3905
sance. Open-walled restau- on the opportunities. Abra- working to address a persis- “The prices are only going NASSAU & QU E E NS 516.334.0077
rants and craft breweries ham Edid purchased a 2,700- tent problem of homeless- to go up, and at the high-end
WESTCH ESTE R & H U DSON VALLEY 914.592.1001
have cropped up along with square-foot, 1906 Colonial- ness. And in areas like North of the market people really
yoga studios and boutiques. style home in South Park, Park, South Park and Golden want space,” she says. californiaclosets.com
A limited collection of
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HOLLY HUNT
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MANSION
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NATURE’S SANCTUARY
DISTINCTIVE PROPERTIES 1,146 acres. Hardwoods. Fields.
SELECT RESIDENTIAL LISTINGS FRIDAYS IN MANSION
MANSION
RELATIVE VALUES
This glass, steel and stone home comprises three interconnected This 621-acre ranch estate includes an exercise studio cantilevered The contemporary Mediterranean home is the former home of ac-
structures joined by bridges. The “mountain modern” style home over oak trees, to create the illusion of floating. “You feel like tor Mark Walhberg. A two-story, roughly 3,000-square-foot hangar
will sell fully furnished, including the universal workout machine you’re stepping out into open space,” said Sara Kozel, who owns on the property includes a boxing ring that Mr. Walhberg used to
and basketball hoop in the light-filled fitness room. the home with her husband, Edward Kozel, a tech executive. train for his film “The Fighter,” according to his representative’s of-
Agent: Dan Henschel, Christie’s International Real Estate Agent: Chuck Lamp of Sotheby’s International Realty and Nicki fice. Agent: Valerie Fitzgerald, Coldwell Banker Residential Brokerage
Naylor of Intero Real Estate —Stefanos Chen
L-R: WHIT RICHARDSON (2); DAVID DUNCAN LIVINGSTON; ERIC RORER (INSET); NICK SPRINGETT (2)
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Advertise in The Wall Street Journal’s upcoming special
advertising feature focused on the second home market in
the Hamptons, East End and North Fork and reach an audience
of affluent readers in the market for exceptional homes. The
section will explore the benefits of living and investing in
these Long Island regions.
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