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PERSONAL JOURNAL |D1
DJIA 16453.83 À 257.42 1.6%
What’s
News
Business & Finance
pple said it would fight an
A order to unlock a phone
used by one of the San Ber-
nardino terrorists, setting up
what could be a precedent-
setting legal battle. A1, A6
 Iran dented the efforts
of other major oil export-
ing countries to limit pro-
duction by refusing to
curb its own output. A1
 The Dow gained 257.42
points to 16453.83 as U.S.
stocks completed their first
three-day rally this year. C1
 Fed officials struggled
with uncertainty about the
economic outlook at their
January policy meeting. A2
 The ECB is weighing more
rate cuts despite concerns
over the impact on already
battered bank stocks. C1
 Japan’s corporate profits
fell nearly 10% last quarter
and firms expect more pain
due to a stronger yen. B1
 Tech distributor Ingram
agreed to be acquired for
about $6 billion by a unit of
China’s HNA Group. B1
 ABC Entertainment’s
president, Paul Lee, resigned.
He is being succeeded by
Channing Dungey. B3
 Comcast’s Fandango
agreed to acquire Flixster
and Rotten Tomatoes from
Time Warner’s Warner Bros. B3
 Boeing’s CEO defended
the firm’s accounting and
strategy after weeks of vola-
tile stock movements. B2
World-Wide
 Trump’s support among
Republicans has declined in
the past month, leaving
him slightly behind Cruz,
according to a new poll. A1
 South Carolina’s gover-
nor endorsed Rubio ahead
of that state’s primary. A5
 Americans are split over
whether the Senate should
consider an Obama Su-
preme Court nominee. A4
 The Obama administration
criticized Xi after charging
that China had deployed mis-
sile batteries on a disputed
South China Sea island. A7
 Obama plans to travel to
Cuba next month, the first
such visit by a sitting U.S.
president in 88 years. A9
 The pope issued a plea
for justice for migrants as he
wrapped up a Mexico trip with
a visit to the U.S. border. A9
 U.N. aid reached some
besieged areas of Syria, even
as the regime continued an
offensive and the opposition
vowed to reverse losses. A8
 A car bomb exploded in
Turkey’s capital, killing at
least 28 people, in an at-
tack that officials said tar-
geted a military convoy. A8
 Venezuela raised gas
prices for the first time in
nearly two decades and de-
valued the local currency. A9
 A testosterone replace-
ment trial found improved sex-
ual function in older men. B1
CONTENTS
Arts in Review...... D5
Business News. B2-3,8-9
Crossword................. B9
Global Finance........ C3
Heard on Street.... C8
In the Markets....... C4
s Copyright 2016 Dow Jones &
Company. All Rights Reserved
The Political
War on Cash
OPINION | A12
* * * * * THURSDAY, FEBRUARY 18, 2016 ~ VOL. CCLXVII NO. 39 WSJ.com HHHH $3.00
NASDAQ 4534.06 À 2.2% STOXX 600 328.77 À 2.6% 10-YR. TREAS. g 12/32 , yield 1.819% OIL $30.66 À $1.62 GOLD $1,211.10 À $3.20 EURO $1.1130 YEN 114.10
Apple, FBI Dig In for Privacy Fight
Washington and Silicon Val-
ley geared up Wednesday for a
high-stakes legal battle over a
phone used by one of the San
By Devlin Barrett in
Washington, D.C., and
Daisuke Wakabayashi
Apple has said it will fight the
order, setting the stage for what
both sides expect will be a prec-
edent-setting case in an era of
“We now have the condi-
tions for the first punch to be
landed,’’ said Ron Hosko, a for-
mer senior FBI official. “But
lamic State] terrorist’s privacy
over the security of the Ameri-
can people.’’
Detectives and prosecutors
Bernardino, Calif., terrorists, a in San Francisco ubiquitous smartphones. this is just Round One.” said encrypted smartphones
contest each side views as a Both sides are bracing for In the San Bernardino case, are a growing problem for
must-win in their long fight over and the company’s defenders the legal fight ultimately to federal law enforcement offi- them. The Manhattan district
security versus privacy. said the fight is really about reach the Supreme Court, and cials say they have a compel- attorney’s office said that
A White House spokesman
framed the brewing court fight
the privacy and security of mil-
lions of customers.
the possibility that the case
could prompt Congress to act.
ling argument, after a deadly
high-profile terror attack, to
since September 2014, the
technology has kept it from ex-
as relating to a single phone— The furor stemmed from a The order from Judge Sheri force open a phone and ensure Please see APPLE page A6
that of Syed Rizwan Farook, judge’s order this week requir- Pym gives Apple five days to they haven’t missed additional
who opened fire with his wife ing Apple to help the Federal Bu- challenge her order, which the suspects or evidence.  Newer phone models aren’t
at an office party late last year, reau of Investigation circumvent company has already pledged Sen. Tom Cotton (R., Ark.) easy to crack.............................. A6
killing 14 and injuring 22. Apple a passcode protection system on to do. Whichever side loses is said on Wednesday that “Apple  Christopher Mims: Apple’s
Inc. Chief Executive Tim Cook the phone used by Mr. Farook. likely to appeal. chose to protect a dead [Is- risky encryption strategy.... B1
Pope Francis Wraps Up Mexico Visit With Stop at U.S. Border
Trump
Loses
Ground in
New Poll
BY JANET HOOK
Support for Donald Trump
among Republicans has de-
clined in the past month, leav-
ing him slightly behind Sen.
Ted Cruz in the GOP presiden-
tial race, according to a new
ALESSANDRO DI MEO/EUROPEAN PRESSPHOTO AGENCY
Wall Street Journal/NBC News
poll conducted after a combat-
ive debate performance that
may have soured some voters
on the New York businessman.
Mr. Trump had enjoyed a
double-digit lead over his ri-
vals, but the new poll found
support for him falling by
seven percentage points since
mid-January. Among regis-
tered voters who said they
would participate in a GOP pri-
mary, he drew 26% support in
FRONTIER: The pope blessed crowds on the U.S. side of the border Wednesday and called for justice for undocumented migrants. A9 the new poll, trailing Mr. Cruz,
whose support rose by eight
points to 28%. The survey, of
400 registered voters who said
they would participate in a
CHINA GLUT SWAMPS HINTERLAND GOP primary, had a margin of
error of plus or minus 4.9 per-
centage points.
A number of other GOP can-
Surplus squeezes second-tier towns Beijing was counting on for growth, deepening global woes didates have dropped out of
the race, a winnowing of the
BY JAMES T. AREDDY last month, she was settling for close- bei Aoma Special Automobile Co. fac- field that has benefited Mr.
out prices to unload six bags of dried tory, where he was hired to do quality Trump’s rivals. The poll shows
SUIZHOU, China—Even in China’s re- mushrooms that took a half year to cul- control. “I don’t know what had really that if the primary came down
motest places, relentless overproduc- tivate. happened to us.” to a head-to-head choice, both
tion—here it is mushrooms and cement For Xu Song, a clanging sound was Beyond the glut of steel and apart- Mr. Cruz and Sen. Marco Rubio
trucks—is clouding the country’s path once a welcome reminder that his 200 ments that weighed down growth in re- Please see POLL page A4
to prosperity and jolting the global colleagues were busy pounding steel cent years, China’s economy is also sat-
economy. into the giant barrels used on cement urated with surplus goods from farms
When 48-year-old farmer Yang Qun trucks. On a recent day, he sat alone and factories. Numerous small and mid-
began trading at Suizhou’s bustling watching videos in an unheated office, size cities such as Suizhou, which  Greg Ip: Economics and
morning mushroom market a half de- the only worker left on an abandoned boomed on easy credit and government populists don’t mix.......... A2
cade ago, the fungus industry was ex- factory floor where dozens of rusting support for agribusiness and construc-  Americans divided on
panding, even attracting a rural lending barrels were stacked like multi-ton tion, were supposed to provide the sec- court nominee vote.......... A4
arm of British financial giant HSBC footballs. ond wave in China’s growth story. In-  Democrats vie for
Holdings PLC. Ms. Yang saved enough “The decline was steep,” says Mr. Xu, stead they are now sputtering, wearing Nevada’s minorities.......... A5
to buy a minivan. When wet snow fell standing inside the all-but-defunct Hu- Please see CHINA page A10
In London, PR Professionals Iran Balks at
Oracle #1
Pitch a New ‘Guilded’ Age OPEC’s Call
i i i
To Curb Oil
No comment on campaign to join city’s
venerable trade associations; ‘loving cup’ Production Cloud ERP
BY MAX COLCHESTER Their pitch has fallen flat. Iran dented the efforts of
For over a decade, the Guild other big oil exporters to limit
LONDON—Since medieval of Public Relations Practitio- production Wednesday by re-
times, the top trades of the ners has tried to rustle up fusing to curb its own output,
City of London, such as iron- funds and members from
mongers, wax chandlers, haber- among London’s numerous By Benoit Faucon
dashers, scriveners and weav- flacks, in order to win an up- in London and
ers, have been recognized with grade to a more exalted status. Summer Said and
the rank of “liv- It has lobbied Asa Fitch in Dubai
ery company.” the City of Lon-
They’ve been don’s Aldermen demonstrating the limits of
joined more re- for recognition. OPEC’s power to boost prices 1,675 150
cently by insur- It has tussled amid rising tensions among its
Opinion............... A11-13 ers and tax ad- with the Wor- members. Oracle Cloud Workday Cloud
Sports.......................... D6
Style & Travel.... D2-4
visers. shipful Company Iran’s oil minister Bijan ERP Customers ERP Customers
Technology............... B5 Liverymen, of Marketors, Zanganeh’s decision threw
U.S. News......... A2-3,6 some decked in over whether PR into question the future of a “Oracle has their act together better than SAP”
Weather..................... B9 flowing robes, and marketing plan brokered by Saudi Arabia
World News........ A7-9
Aneel Bhusri, Workday CEO
gather in an- PR Practitioners are, in fact, the and Russia this week for major
cient halls to coat of arms same thing. Af- oil producing countries to
> drink toasts, ter a blowout limit their output to last
promote best practices and launch in a hall decorated with month’s levels.
raise money for charity. gold, the PR guild nearly ran The efforts come as the Or-
Midsize and large scale Enterprise Fusion ERP Cloud customers.
Sixteen years ago a group out of money. ganization of the Petroleum
of public-relations consul- Undeterred, the Public Rela- Exporting Countries scrambles oracle.com/modern-finance or call 1.800.ORACLE.1
tants decided they also tions Practitioners are now fo- to find ways to prop up an oil Copyright © 2015, Oracle and/or its affiliates. All rights reserved.
needed a livery company. Please see LIVERY page A10 Please see OPEC page A8
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Thursday, February 18, 2016 * *** THE WALL STREET JOURNAL.

U.S. NEWS
Economics and Populists Don’t Mix Fed Seeing
MoreCause
M
arkets don’t usually regulatory and law-enforce-
The Wrong Targets?
pay a lot of attention
to presidential elec-
tions. For all the campaign
Bernie Sanders and Donald Trump have benefited from widespread voter dissatisfaction, but have
focused on problems that are receding: lack of health insurance and illegal immigration.
ment apparatus, the bully
pulpit and diplomacy.
Andy Laperriere, an ana-
For Pause
theatrics, presidents from
both parties, once in office,
tend to hew to economic or-
Direction of country
Right direction Wrong track
Percentage of Americans
that lack health insurance
Estimated Mexican illegal
immigrants in the U.S.
lyst at Cornerstone
Macro, says a President
Sanders could “beat the tar
On Rates
thodoxy, whether on free 100% 20% 8 million out of” banks, while a Presi- BY JON HILSENRATH
trade or the independence of 2015* dent Trump could start a
the Federal Reserve. 9.1% trade war with China. Federal Reserve officials
This would be a good 75 15 6 Moreover, Messrs. Sanders appear increasingly reluctant
year to jettison those as- and Trump didn’t achieve to raise short-term interest
sumptions. their popularity in a vacuum. rates at their March policy
50 10 4 2014: 5.6 million
Much as the Many in Congress and the meeting, and possibly beyond,
global financial broader public share their amid market turbulence,
crisis tripped populist distrust of globaliza- China’s dimmed outlook and
up economists 25 5 2 tion and finance. That imper- indications that inflation
in 2008, so too ils the recently signed but still could stay at low levels longer
has the presi- not ratified 12-nation Trans- than expected.
0 0 0
CAPITAL dential cam- Pacific Partnership, and the Officials struggled with un-
ACCOUNT paign made a 2000 2010 2000 2010 2000 2010 institution about which mar- certainty about these develop-
GREG IP mockery of po- Sources: WSJ/NBC News polls (right/wrong); Centers for Disease Control *Through September kets care most: the Federal ments at their January policy
litical sooth- and Prevention (insurance); Pew Research Center (immigration) THE WALL STREET JOURNAL. Reserve. Many in Congress meeting, according to minutes
saying. see it not as economists do— of the gathering released by
Only now are investors pan their proposals. Neither, been falling since 2007. have redefined the boundar- as the savior of the econ- the central bank Wednesday.
grappling with the possibil- apparently, do their growing Mr. Sanders puts more ies of the politically palat- omy—but as handmaiden to Since the meeting, some offi-
ity that Democratic candi- ranks of supporters. A public thought into his policies and able. In 2008, Republican the banks or an unaccountable cials have started speaking
date Bernie Sanders, a self- whose inflation-adjusted in- has found some economists to presidential candidate John enabler of fiscal profligacy. out about their desire to wait
declared democratic socialist comes have been ratcheting back them. Nonetheless, his McCain was criticized for a to raise interest rates again

T
and leader of a “political downward since 1999 and ideas are driven less by eco- tax plan that would have he Fed usually depends until they’re sure the U.S. eco-
revolution,” or Republican overwhelmingly believes the nomic evidence than a deeply shrunk revenues by more on the White House to nomic outlook isn’t deteriorat-
Donald Trump, a reality-TV country is on the wrong entrenched, ideological view than $1 trillion over 10 years, protect it from con- ing and inflation isn’t stuck
personality who devises pol- track may feel it has little to of a world stacked in favor of according to a nonpartisan gressional meddling, but in below their 2% target.
icy on the fly, could actually lose from unorthodox ideas. business and the rich. analysis at the time. The recent years it has lost legis- At the January 26-27 gath-
be president. Is that so bad? Many con- The Affordable Care Act added spending or foregone lative battles over the ering, officials “agreed that
The risk lies not just in temporary experts thought has reduced the share of the revenue of Messrs. Trump makeup of its board of gover- uncertainty had increased, and
their policies, which are rad- Franklin D. Roosevelt and population without health in- and Sanders’s plans each nors and the use of its earn- many saw these developments
ical enough. Mr. Sanders Ronald Reagan harbored dan- surance to the lowest in at come to more than 10 times ings. President Barack Obama as increasing the downside
would break up the big gerous ideas. In office, least a generation. Yet Mr. as much, according to a dif- did promise to veto a Repub- risks to the outlook,” said the
banks, introduce universal though, both men surrounded Sanders would sweep it away ferent nonpartisan group, lican-backed House bill that minutes.
government-funded health themselves with astute advis- with a costly and disruptive the Committee for a Respon- would have subjected the Fed The Fed in January held its
care and raise the federal ers and ultimately got the big universal health plan that four sible Federal Budget. to invasive audits. Presum- benchmark short-term interest
minimum wage to $15. Mr. questions right. former Democratic chairmen Markets may take com- ably a president Sanders, who rate steady at between 0.25%
Trump would slap steep tar- Thus far, there is no coher- of the White House Council of fort that even if one of these backed a similar bill in the and 0.5%. The central bank in-
iffs on imports from China ent economics evident in the Economic Advisers say “un- men became president, their Senate, would have signed it. creased that rate by a quarter
and Mexico and build a wall policies of Mr. Trump. Asked dermines our reputation as more extravagant ideas From China to oil, markets percentage point in December
along the Mexican border to to name an economic adviser, the party of responsible arith- wouldn’t get past Congress. already have plenty to worry and penciled in four more rate
keep out immigrants. his campaign cites billionaire metic.” He would break up big That’s true especially of Mr. about. To that list they can increases for 2016, driven by a
The greater risk is that hedge-fund manager Carl banks, even though onerous Sanders, since at least one add a possible president that view that inflation would start
both men represent a rejec- Icahn. Illegal immigrants from new regulations passed in the chamber is likely to remain presides over a circumscribed rising as hiring and the econ-
tion of economic orthodoxy. Mexico are central villains in wake of the crisis are still tak- Republican-controlled. But central bank, escalating trade omy continued to expand.
They don’t especially care his narrative of American de- ing effect. presidents exercise extraor- conflict or a stepped-up as- The Fed’s next policy meet-
that mainstream economists cline, though their ranks have On fiscal policy, both men dinary influence, through the sault on Wall Street. ing is March 15-16. Traders in
futures markets see a 94%
chance it won’t raise rates

Industrial Output Jumps on Strong Car Sales

then, an 83% chance it won’t
move before midyear and
about a 50% chance the Fed
won’t move rates at all in
BY JOSH MITCHELL harbinger of the economy’s In other economic news: 2016, according to the Chicago
health—grew 0.5% last month  The producer-price index, Mercantile Exchange.
U.S. industries ramped up after falling 0.2% in each of the which measures the prices “Inflation is not likely to
production in January as prior two months. The latest in- companies receive for goods pick up substantially until the
strong car sales helped buffer crease was due largely to the and services, advanced 0.1% in second half of the year,” Pat-
factories against a global eco- surge in auto production, January from the prior month, rick Harker, president of the
nomic slowdown, but the out- though food output also rose. the Labor Department said Federal Reserve Bank of Phila-
PATRICK T. FALLON/BLOOMBERG NEWS

look remains muddled. Utility production grew by Wednesday. Excluding volatile delphia, said at the University
Industrial production—a 5.4% last month from December, food and energy categories, of Delaware on Tuesday. “It
broad measure of everything as last month’s cold and snow core prices climbed 0.4%. might prove prudent to wait
made by manufacturers, mines prompted increased electricity The index has been firming until the inflation data are
and utilities—jumped 0.9% in production. Mining production since November as the cost of
January from a month earlier, was flat from December and services rise, but it still re-
the Federal Reserve said down nearly 10% from a year mains historically weak. Over-
Several Fed officials
Wednesday. Production hadn’t earlier as energy firms scale all producer prices were down have suggested rate
expanded by more than that in back in response to depressed 0.2% in January from a year
a single month since May 2010. oil prices. earlier, the 12th straight year-
hikes should wait for
The boost reflected a surge Increased auto production and electricity generation helped Economists closely follow in- over-year decline. Core prices- stronger inflation data.
in electricity generation due to power a 0.9% increase in U.S. industrial production in January. dustrial production, along with rose 0.6% from a year earlier.
last month’s cold weather, as measures of employment, retail  U.S. housing starts fell
well as higher manufacturing performance has any staying 77.1%; in healthier expansions, sales and income, to gauge the 3.8% from a month earlier to a stronger before we undertake
output to meet demand for power or will not be offset by it has run 80% and higher. economy’s strength and seasonally adjusted annual a second rate hike.”
new cars. But overall output a weak February,” IHS Global Still, last month’s rebound whether a recession is near. rate of 1.099 million in Janu- Fed Chairwoman Janet Yel-
has been declining over the Insight economist Michael could boost hopes that the The U.S. economy grew at a ary, the Commerce Depart- len expressed uncertainty
past year, and it isn’t clear Montgomery said. manufacturing sector will yearly rate of 0.7% in the final ment said Wednesday, the about the outlook in testi-
whether the surge was a blip Despite the bounce, indus- weather the sharp drop in oil three months of 2015, slower lowest rate since October. mony to Congress last week
or the start of a broader re- tries continued to operate far prices, the strong dollar, weak than the 2% pace in the third And new applications for without taking a March move
bound. below their potential, keeping global demand and turbulence quarter and 3.9% in the second building permits fell 0.2% to off the table. She did empha-
“January was just a good the economy in a sluggish in the financial markets. quarter. Economists expect 1.202 million. size that Fed policy isn’t on a
month in a long string of weak state. Capacity use—a measure Output by manufacturers— growth to rebound in the cur- —Jeffrey Sparshott and set course and would be re-
or mediocre months, with no of economic slack—climbed which accounts for two-thirds of rent quarter, to a rate between Anna Louie Sussman sponsive to new develop-
assurances that the January seven-tenths of a point to all industrial output and is a 2% and 3%. contributed to this article. ments.
“If inflation is slower to re-

CORRECTIONS  AMPLIFICATIONS
turn to target, monetary pol-
readings in December, the term and long-term policy icy normalization should be
U.S. agency said.
State environmental officials
changes to improve security pro-
tections. The panel will look at
unhurried,” Eric Rosengren,
president of the Federal Re-
Quicksilver Resources Inc.
recently sold its U.S. oil and
day’s currency values of
$1.1256 and 113.25 yen, respec- Watch have said the operator of
Sebring’s water plant waited
changing federal computer net-
works that have outdated secu-
serve Bank of Boston, said
Tuesday. “A more gradual ap-
gas assets for $245 million in tively. months to notify people about rity systems, the implications of proach is an appropriate re-
a bankruptcy-court-supervised high lead readings. cybersecurity on the commercial sponse to headwinds from
auction, and the company Shuddle Inc., a ride-hailing Residents in Sebring, near sector, and the recruitment and abroad that slow exports, and
owed $157 million on its re- service for families, told cus- Youngstown, and two other com- development of experts in this financial volatility that raises
volving loan as of Sept. 30. A tomers over the weekend it OHIO munities, said they weren’t told field, among other things. the cost of funds to many
Money & Investing article Fri- would raise average prices by until mid-January about the lead, —Damian Paletta firms.”
day about energy companies’ up to 20%. In some editions
EPA Fires Two in which is especially dangerous to Of course nothing is yet
revolving credit lines failed to Wednesday, a Technology arti- Contamination Probe young children and can cause TRANSPORTATION set. Markets could quickly re-
take into account payments in cle about food-delivery startup Ohio’s Environmental Protec- learning disabilities and behav- verse and the Fed will have a
the interim and incorrectly DoorDash Inc. incorrectly said tion Agency fired two employees ioral problems.
Traffic Deaths chance to look at more data
said the company’s assets Shuddle would raise average and demoted a third Wednesday —Associated Press Jumped 8% in 2015 on inflation and jobs before
weren’t worth enough to cover prices by 20%. following an internal investiga- The number of traffic deaths making a call next month.
the highest-ranking debt. tion of how it handled lead con- WASHINGTON, D.C. in the U.S. rose 8% from 2014 to Stock markets already have
The first name of Corrie tamination in a village’s drinking 2015, the largest year-to-year shown some signs of stabiliz-
The euro on Monday Painter of the Metastatic water.
Cybersecurity Panel percentage increase in a half- ing. Moreover, economic data
traded at $1.1155, and the U.S. Breast Cancer Project was The firings came after the Leaders Appointed century, according to preliminary haven’t been all bad. The Fed-
dollar traded at 114.60 yen. misspelled as Cory in an arti- agency looked into why it took The White House on Wednes- estimates by the National Safety eral Reserve Bank of Atlanta
Market data Tuesday on Page cle about breast cancer in months for the agency’s top ad- day appointed two leaders for a Council. estimates economic output is
One incorrectly contained Fri- Tuesday’s Health Care report. ministrators to find out about new panel directed with drafting About 38,300 people were expanding at 2.6% annual rate
high lead levels in the northeast policy recommendations to bet- killed on U.S. roads, and 4.4 mil- in the first quarter, up notably
Readers can alert The Wall Street Journal to any errors in news articles by Ohio village of Sebring. ter protect the government, busi- lion people were seriously in- from a 0.7% pace in the fourth
emailing wsjcontact@wsj.com or by calling 888-410-2667. The state EPA said it fired an nesses and consumers from cy- jured, the council said. That quarter. Moreover wage
employee at its central office berattacks. would make 2015 the deadliest growth shows signs of acceler-
THE WALL STREET JOURNAL who failed to make sure lab re- Thomas Donilon, President driving year since 2008. ating as the jobless rate falls.
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) sults were sent to a regional of- Barack Obama’s former national The council said a stronger Peter Hooper, chief econo-
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 fice reviewing the lead testing. security adviser, and Sam Palmi- economy and lower unemploy- mist at Deutsche Bank Securi-
Published daily except Sundays and general legal holidays.
Periodicals postage paid at New York, N.Y., and other mailing offices. The agency said the missed sano, the former chief executive ment rates were probably among ties, said he expected the Fed
POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. step was critical to figuring out of International Business Ma- the key factors, along with lower to lower its growth and infla-
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are
available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of the Americas, New whether lead levels are above chines Corp., will serve as chair gas prices. With driving more af- tion forecasts when officials
York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an federal guidelines and if resi- and co-chair of the 12-person fordable, more people are on the next meet in March. That
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Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com dents should be warned. group, which is supposed to pro- road. Average gas prices were would be a precursor to mov-
The employee’s supervisor vide recommendations by Dec. 1. 28% lower last year than in ing interest-rate plans into
NEED ASSISTANCE WITH YOUR SUBSCRIPTION? also was let go. The other 10 members haven’t 2014. neutral.
CONTACT CUSTOMER SUPPORT. A manager in the state EPA’s been appointed. The Transportation Depart- Mr. Hooper started the year
By web: customercenter.wsj.com northeast Ohio office was de- The White House created the ment estimates a 3.5% increase projecting three Fed rate in-
By email: wsjsupport@wsj.com moted for not alerting his super- Commission on Enhancing Na- in the number of miles driven by creases this year. He has now
By phone: 1-800-JOURNAL (1-800-568-7625)
Or by live chat at wsj.com/livechat
visors to the problem after tell- tional Security last week. It is motorists in the U.S. in 2015. downshifted to one later in
ing the village about the high supposed to look for medium- —Associated Press the year.
 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.
LEXEY SWALL FOR THE WALL STREET JOURNAL
Jerome Bullock, a trainee at Plumbers and Steamfitters Local 5 in Lanham, Md. His program leads to a salary of about $80,000 a year.
Plumbers’PayCrimpsUnion
Higher earnings can
make labor too costly
for many private-
sector projects
BY JEFFREY SPARSHOTT
LANHAM, Md.—At Plumb-
ers and Steamfitters Local 5
training facility here, there is
no shortage of interest in the
trades.
The union shop gets about
10 applicants for every open-
ing in its apprenticeship pro-
gram. The big draw? A five-
year training program that
leads to a salary of around
$80,000 a year, plus health
and retirement benefits. Par-
ticipants don’t rack up any col-
lege debt.
But the generous pay pack-
ages have a drawback: They
can make union labor too ex-
pensive for many private-sec-
tor construction projects, lim-
iting the amount of work
available for the shop and
forcing it to turn away would-
be trainees—even as many
contractors say they can’t find
enough qualified workers.
Last year, U.S. construction
spending approached prereces-
sion levels for the first time
during the economic expan-
sion. But the number of work-
ers hasn’t, leaving contractors
across the country looking for
plumbers, carpenters, masons
and other tradesmen. As of
January, industrywide employ-
ment was more than 14% be-
low its April 2006 peak.
Some 71% of construction
firms plan to add to their pay-
90 Prince Street — NEW YORK
U.S. NEWS
rolls in 2016, according to a
survey by the Associated Gen-
eral Contractors of America,
an industry group, but 70% are
having a hard time finding
qualified workers.
“The challenge we face and
everyone is facing is a skilled
labor shortage,” said Doug
Macpherson, general manager
at the Baltimore office of Con-
struction Labor Contractors, a
staffing agency. “It’s probably
getting worse every year.”
At Plumbers Local 5, how-
ever, which covers Washing-
ton, D.C., and parts of Mary-
land and Virginia, there seems
to be no shortage of people
looking for a job in the indus-
try. “There’s a huge interest in
the trades,” said Timothy Ha-
ley, training director for the
local. “Unfortunately, we can’t
bring them all in.”
That is because the union
doesn’t have enough work to
justify expanding ranks from
its roughly 1,200 active mem-
bers, including 250 appren-
tices who have signed up for a
five-year training program. For
plumbing and steamfitting,
Plumbers Local 5 has less than
15% of the regional market; for
heating and cooling just over
one third, said Jim Killeen, the
group’s business manager.
One obstacle to landing
more contracts is the relatively
high pay. Nationwide, average
hourly earnings among plumb-
ing and heating contractors
averaged $27.62 last year. A
journeyman—a plumber who
has completed the five-year
training program—at Local 5
makes about $10 an hour more
than that. Add in health insur-
ance, retirement and other
costs, and pay and benefits to-
tal more than $55 an hour.
While union locals in differ-
ent parts of the country have
varying market shares, the ex-
perience can be similar. Sean
McGarvey, president of North
America’s Building Trades
Unions, said there are waiting
lists for apprenticeship pro-
grams in high-wage states in
the Northeast, Midwest and
West. “But like any business,
we don’t recruit people for
jobs that don’t exist,” he said.
If demand for labor contin-
ues to rise, compensation
packages like the union’s could
become more competitive in
more places. Right now, it
doesn’t appear to be at that
level.
Many contractors
complain they are
struggling to find
qualified workers.
Plumbers Local 5 is trying
to offer flexibility to its con-
tractors. Trainees don’t start
at the highest level of pay—a
first-year apprentice earns
40% of the salary of a journey-
man; a fifth-year apprentice
earns 80%. By mixing experi-
ence levels on a job, contrac-
tors can control wage costs.
And to drum up more busi-
ness, the plumbers in their lat-
est contract opened up more
work to a lower-wage category.
It allows union contractors—
the firms that bid on and com-
plete the work—to tap experi-
Thursday, February 18, 2016 | A3
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enced plumbers but pay a rate
much closer to $35 for wages
and benefits than the $55 at
the normal scale. Active mem-
bers can sign up if no other
work is available, but the jobs
often end up going to plumb-
ers who haven’t gone through
the union’s apprenticeship
program, Mr. Killeen said.
The separate bracket is fo-
cused on private multifamily
housing projects, strip malls
and other light commercial
jobs where there is often no
prevailing wage—a federal or
state floor—as is typical on
projects awarded by a branch
of the government. “It’s going
to help my contractors com-
peting with open-shop con-
tractors,” Mr. Killeen said.
Meanwhile, the plumbers’
pay has been growing fairly
slowly. In its latest settlement,
wages rose only 1.9%. By com-
parison, average hourly earn-
ings for all private-sector em-
ployees was up 2.5% in
January from a year earlier.
Still, the relatively high sal-
ary and generous benefits re-
main a big draw for workers.
“This place gives you the
opportunity to have a family,”
said Michael Canales, a fourth-
year apprentice.
Mr. Canales, 33 years old,
worked a series of construc-
tion jobs with nonunion con-
tractors and was going to col-
lege when he was accepted in
the apprenticeship program.
“You have what you need,
you have a decent, living wage,
great benefits. You put in your
30 years, you can retire. Isn’t 1.855.4 4.ZEG N A | Z EG N A .C O M
that a goal anymore?” Mr.
Canales said.
moncler.com
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A4 | Thursday, February 18, 2016 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL.

Americans Divided on Court Nominee Vote Split Ruling

The public is divided on whether
the Senate should vote on
BY BRENT KENDALL should remain vacant until The president is expected to Because Justice Scalia’s nominate a successor and that Mr. Obama’s Supreme Court
2017, when a new president announce his selection in the death came in the middle of a the Senate had a responsibility nominee or wait for the next
WASHINGTON—Americans could nominate a replacement. coming weeks, but the nomi- heated election campaign, how to give that person a hearing administration.
are just as divided as politi- The remaining 15% had no nee could face long odds in a voters react to each side’s ma- and a vote.
Vote this Leave
cians over whether the Senate opinion. Republican-controlled Senate, neuvers over the court va- Senate Republicans haven’t year on vacant
should consider President Ba- The survey found voters which approves judicial candi- cancy could have a significant reached a firm conclusion on replacement and wait
rack Obama’s forthcoming were split deeply along party dates. impact on who wins the White whether to hold hearings to
Total 43% 42%
nominee for the Supreme lines, with 71% of the Demo- The stakes are high for each House, not to mention control evaluate the president’s even-
Court vacancy created by the crats favoring Senate consider- party, in terms of both politics of the Senate. tual nominee. Dem. 71 13
death of Justice Antonin Sca- ation of an Obama nominee and law. Within hours of the It is rare in modern times
Ind. 43 42
lia. and 73% of Republicans sup- The Supreme Court has held news that Justice Scalia had for a justice to die in office,
A new Wall Street Journal/ porting no action until the a slim conservative majority died, Republican presidential moreover for it to happen dur- GOP 14 73
NBC News poll of registered next president assumes office. for decades. Mr. Obama could candidate Ted Cruz and Senate ing an election year. Most have
voters found that 43% pre- Voters who identified as in- affect the direction of the law Majority Leader Mitch McCon- left the court through retire- Note: Respondents saying they had no
opinion not included.
ferred the Senate to vote this dependent were almost evenly for years to come if he suc- nell said the vacancy shouldn’t ments, often timed to increase Source: WSJ/NBC News telephone poll of
year on Mr. Obama’s choice to divided, 43% to 42%, on cessfully places a lifetime ap- be filled by Mr. Obama in his the likelihood that a like- 800 registered voters conducted Feb. 14–16;
fill the unexpected opening, whether senators should take pointee to succeed Justice Sca- final year in office. Mr. Obama minded president could ap- margin of error +/- 3.5 pct. pts.
while 42% said the position up a court pick this year. lia, a leading conservative. the same day said he would point a successor. THE WALL STREET JOURNAL.

POLL GOP Race Tightens

Continued from Page One
could beat Mr. Trump by dou-
ble-digit margins.
For now, however, there are
six candidates in the race. The
poll found that Mr. Rubio had
solidified his third-place posi-
tion, rising four points in the
past month to 17% support.
Ohio Gov. John Kasich
jumped from the bottom tier of
the field to fourth place, with
11%. He edged out retired neuro-
surgeon Ben Carson, who had
10% support in the new poll, and
former Florida Gov. Jeb Bush,
who slid to a low mark of 4%.
The new survey marks the
first time since the fall that
the Journal/NBC News poll has
found anyone other than Mr.
Trump in the lead among Re-
publicans nationally, and it dif-
fers from other recent national
surveys that show him holding
a steady lead. For example, a
new Reuters/Ipsos poll, also
released Wednesday, shows
Mr. Trump with a lead of more
than 20 points nationally. That
means the Journal/NBC survey
could reflect a shift in mood, a
temporary blip or a finding
outside the mainstream.
“When you see a number
this different, it means you
might be right on top of a shift
in the campaign,” said Bill
McInturff, a GOP pollster who
conducted the survey with
Donald Trump's lead over his top rival, Ted Cruz, has disappeared over the past month in Wall Street
Journal/NBC News polling. Marco Rubio is the most widely acceptable candidate within the GOP.
First choice for president
Dec. Jan. Feb.
35%
30
25
20
15
10
5
0
Source: WSJ/NBC News telephone polls, most recent of 400 registered voters who say they
would vote in a Republican primary conducted Feb. 14–16; margin of error +/- 4.9 pct. pts.
Democratic pollster Fred Yang.
“What you don’t know yet is if
the change is going to take
place or if it is a momentary
pause before the numbers snap
back into place.”
Mr. Yang said the poll sug-
gests Mr. Trump, with fewer
opponents, may be nearing the
limit of his support. “As the
field shrinks, as the spotlight
becomes more glaring on him,
he does have a ceiling,” Mr.
Yang said on MSNBC.
Mr. McInturff noted that
the Republicans surveyed in-
cluded more who identified
themselves as very conserva-
tive, which plays to Mr. Cruz’s
strength. But even taking that
into account, he said, it is clear
Trump turned in an especially
aggressive, insult-laced per-
formance, faulting Mr. Bush’s
brother, former President
he likes many things about Mr.
Bush but is supporting Mr.
Trump, because he believes
Mr. Bush is unlikely to win in
‘Could you see yourself supporting this candidate?’ George W. Bush, for failing to the fall. “He’s got a tough row
stop the 9/11 terror attacks. to hoe,” said Mr. Faulkner.
‘could support’ minus ‘could not support’
Daniel Cleveland, 25, who “Trump would have a better
60 pct. pts. lives outside Spartanburg, chance of beating [Democrat
February poll S.C., said he had been consid- Hillary] Clinton.”
28% Cruz 40 +42 Rubio ering Mr. Trump. But he was A big shift came among so-
26% Trump +32 Cruz turned off by Mr. Trump’s de- called traditional-values con-
20
+27 Carson bate performance. servatives, a pivotal group of
+14 Trump “He just lost his cool,” said abortion-rights and gay-mar-
0
+8 Kasich Mr. Cleveland. riage opponents who make up
17% Rubio -7 Bush
–20 Bonnie Kartes, 41, of Buck- half of the GOP primary voters
11% Kasich
eye, Ariz., who participated in surveyed. Among that group,
–40 the poll, said she finds Mr. Ka- Mr. Trump drew support from
10% Carson
sich appealing and is dis- 20%, down from 31% in a Jour-
4% Bush –60
mayed by what she has seen nal/NBC poll a month ago.
2015 2016 from Mr. Trump in debates. In another warning sign for
“I thought at first maybe he Mr. Trump, the poll found a
THE WALL STREET JOURNAL. was serious, but the more I significant drop in a broader
watched him, to me he is not measure of his acceptability as
serious,” Mrs. Kartes said. a candidate: The share of Re-
The Wall Street Journal/NBC News poll was based on nationwide
telephone interviews of 800 registered voters, including 280 respon- Some Republican candi- publican primary voters who
dents who use only a cellphone. It was conducted from Feb. 14-16, dates have argued that the could see themselves support-
2016, by the polling organizations of Bill McInturff at Public Opinion
Strategies and Fred Yang at Hart Research Associates. death of conservative Supreme ing him as the nominee fell to
Individuals were selected proportionate to the nation’s population Court Justice Antonin Scalia, 56% from 65% a month ago.
in accordance with a probability sample design that gives all landline
telephone numbers, listed and unlisted, an equal chance to be in- and the coming fight to name When Republican candi-
cluded. Registered voters age 18 or older were selected by a system- his successor, should re-em- dates were pitted against each
atic procedure to provide a balance of respondents by sex. The cell-
phone sample was drawn from a list of cellphone users nationally. Of the 800 phasize to voters that the other in test match-ups, the
interviews, 280 respondents were reached on a cellphone and screened to ensure their eventual nominee should be poll found that Messrs. Cruz
cellphone was the only phone they had. In addition, 21 respondents were reached on a
cellphone but reported also having a landline. the one best equipped to de- and Rubio were about equally
Overall, the data’s margin of error is plus or minus 3.46 percentage points. The mar- feat the Democratic candidate. equipped to best Mr. Trump.
gin of error for subgroups is larger. Additional interviews were conducted on a select se-
ries of questions from a random national sample of past primary voters. These inter- But the poll found that elect- Mr. Trump would lose to
views, when added to the interviews collected from the national adult data, achieved ability isn’t the top concern of Mr. Cruz by 56% to 40%, the
totals of 400 Republican and 400 Democratic primary voters. The margin of error is plus
or minus 4.90 percentage points for these samples. GOP primary voters. Asked poll found. Mr. Rubio would
which quality matters most in beat Mr. Trump by 57% to 41%.
deciding to support a candi- The poll found Mr. Trump
Mr. Trump’s lead has turned The Journal/NBC national date, 35% said “shares your would beat Mr. Bush by 54% to
into a virtual tie in this poll. poll was conducted Feb. 14-16, values,” while only 16% picked 43%, and he would beat Mr.
Mr. Trump leads in polls in the three days after GOP can- “can win in November.” Kasich by 52% to 44%.
South Carolina, site of the next didates met in a televised de- Scott Faulkner, a Republi- —Josh Dawsey
primary, to be held Saturday. bate in South Carolina. Mr. can from Concord, N.C., said contributed to this article.

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THE WALL STREET JOURNAL. * * * * Thursday, February 18, 2016 | A5

Democrats Vie for Nevada’s Minorities

Clinton and Sanders Diversity Accelerates in Nevada
seek to mobilize Nevada saw a decline in the share of white non-Hispanic residents
nonwhite voters between 2008 and 2014 that was greater than any other state, with
Hispanics driving diversity. In South Carolina, the other state to vote
as caucuses near this month, African-Americans account for the bulk of racial diversity.

BY BYRON TAU SHARE OF INCREASE DECREASE Difference

POPULATION: 2008 2014 2014 2008 (pct. pts)
AND ALEXANDRA BERZON
White, non-Hispanic 40% 50 60 70
LAS VEGAS—Vermont Sen.
Nevada -5.7
Bernie Sanders will face his
biggest test so far in his run South Carolina -1.3
for the White House this week, U.S. -3.5
when voters in one of the most
ethnically and racially diverse Black 0% 10 20 30
states will make their choice in Nevada 1.2
the Democratic presidential South Carolina -0.8
contest on Saturday.
Nevada—a sprawling West- U.S. 0.3
ern state with important blocs Hispanic
of Latino, black and Asian- 2.1
American voters—is the next Nevada
JOHN LOCHER/ASSOCIATED PRESS

stop for Mr. Sanders and Hil- South Carolina 1.2

lary Clinton. For Mr. Sanders, a U.S. 1.9
win in the Silver State would
be an opportunity to show he Asian
has appeal among the non- Nevada 1.8
white voters who make up a South Carolina 0.3
significant part of the Demo-
U.S. 0.8
cratic electorate. He has long
trailed Mrs. Clinton in the Cynthia Ameli, a Chinese-American, picks up materials to canvass for Hillary Clinton in Las Vegas Source: U.S. Census Bureau THE WALL STREET JOURNAL.
polls among black and His-
panic voters. For Mrs. Clinton, the population of Las Vegas. travel as long as there’s a cam- on doors across the state. The munities,” she said. ment. Mrs. Clinton later re-
a win here would be an impor- The state’s diversity and the paign,” said Mr. Lewis, calling campaign is on television with Mrs. Clinton’s campaign jected the comment in a
tant show of force and bolster increasingly close battle be- Mrs. Clinton the best-prepared an endorsement from Lucy strategy relies on maintaining television interview.
her argument that she can put tween the two Democratic can- candidate to be president. Flores, a former state legislator her well of support with non- Steven Horsford, a Demo-
together a winning coalition didates have set off a fierce The campaign also has running for U.S. Congress. white voters after her narrow crat who was the first black
against a Republican nominee. fight to persuade and mobilize brought in Dolores Huerta, a Both candidates attended win in Iowa and big loss in Congressman from Nevada and
“We’re going to get a good nonwhite voters. Two Nevada civil-rights leader and labor ac- church services Sunday at a New Hampshire. Both of those former majority leader of the
sense of what Latinos, African- polls this month show the con- tivist who co-founded the Na- large historically black church states are whiter and more ru- state senate, said the explicit
Americans, and Asians are test in a dead heat, though the tional Farm Workers Associa- in Las Vegas and addressed the ral than the country at large. racial appeals may not work
thinking. Hillary Clinton and state is traditionally difficult to tion with Cesar Chavez in the congregation. Still, her campaign began among younger nonwhite vot-
Bernie Sanders are working survey effectively. 1960s. The campaign is on tele- “I am not a single-issue can- lowering expectations ahead of ers who are looking for a more
tirelessly to reach out to these Mrs. Clinton’s campaign vision in Spanish and has didate and this is not a single- the caucuses here. “There’s an comprehensive agenda. Mr.
communities,” said Ruben Ki- brought in Rep. John Lewis, a hosted events in Spanish aimed issue country,” Mrs. Clinton important Hispanic element to Horsford, now a Washington,
huen, a Nevada state senator civil-rights icon and a longtime at familiarizing Latino voters said, referring to Mr. Sanders’s the Democratic caucus in Ne- D.C., marketing consultant,
running for U.S. Congress and Democratic member of Con- with the caucus process. sharp focus on Wall Street and vada. But it’s still a state that is was voted out of office amid a
a supporter of Mrs. Clinton. gress from Georgia to help Mr. Sanders’s campaign has campaign-finance issues. “Be- 80% white voters,” campaign Republican wave in Nevada in
The state is more than a boost turnout among the black been equally aggressive, partic- cause if we were going to spokesman Brian Fallon said on 2014.
quarter Latino and has a siz- community. He made his case ularly in the Latino community. achieve everything about MSNBC after New Hampshire. “Both campaigns have more
able black population. It also for Mrs. Clinton at several The campaign brought Mr. Cha- banks and money and politics, The comment drew a rebuke work to do to speak to a broad
has a large Asian-American campaign stops this week, in- vez’s nephew, Federico Chavez would that end racism?” from Senate Democratic constituency and not put every-
community, the fastest-grow- cluding at a historically black as a surrogate. The campaign is Sanders campaign state di- Leader Harry Reid. Mr. Reid body in categories—all African-
ing minority group in the church and a community cen- dispatching a group of illegal rector Joan Kato said they are told reporters on Tuesday that American voters are not the
country. Non-Hispanic whites ter in a low-income neighbor- immigrants who were brought ceding no ground. “We’re do- he had complained to the Clin- same,” said Mr. Horsford, who
now represent less than half of hood. “I’m going to continue to to the U.S. as children to knock ing outreach in all those com- ton campaign about the com- hasn’t endorsed a candidate.

Rubio Wins Governor’s Endorsement

ports economic impacts of these
H H H H H magnitudes,” said an open letter
from Austan Goolsbee, Alan Krue-
CAMPAIGN ger, Christina Romer and Laura
WIRE D’Andrea Tyson. Mr. Friedman re-
sponded that there was “nothing
H H H H H unusual” in his projections.
—Nick Timiraos
and Laura Meckler
DEMOCRATIC PRIMARY
Economists Criticize REPUBLICAN PRIMARY
Sanders Growth Plan Cruz Takes Aim
Four Democratic economists At Trump’s Record
sharply criticized Sen. Bernie Republican candidate Ted
Sanders for citing “extreme Cruz questioned rival Donald
BY VALERIE BAUERLEIN Mr. Trump’s aggressive attacks
on former Florida Gov. Jeb
CHAPIN, S.C.—South Caro- Bush and other candidates
lina Gov. Nikki Haley endorsed during last weekend’s Republi-
Marco Rubio for the Republi- can debate were seen as po-
can presidential nomination, tentially opening the door to
providing a boost for the Flor- the race’s tightening in its fi-
ida senator just days ahead of nal days.
the state’s primary. Republican voters go to the
At an event with Mr. Rubio polls for the South Carolina
here Wednesday evening, Mrs. primary this coming Saturday.
Haley said she wanted South Democrats follow a week later.
CHRIS KEANE/REUTERS

claims” about the economic ef- Trump’s donations to Democrats, Carolina to resume its long Mr. Rubio has been effusive
fects of his campaign proposals, support of Planned Parenthood history of picking the eventual in his praise of Mrs. Haley on
the latest in a stream of cri- and past support for abortion GOP nominee, a record that the stump, saying repeatedly
tiques from Democrats over de- rights, in an effort to dent was snapped when Newt Ging- that she would make a good
tails of his platform. the billionaire businessman’s rich won the primary in 2012. vice president. The senator’s
The dispute reflects a broader support among South Carolina’s “We make presidents,” she supporters were jubilant
debate in the Democratic Party, evangelical conservatives. said. “Let’s make Marco Rubio South Carolina Gov. Nikki Haley with Sen. Marco Rubio at an Wednesday.
as many liberals line up behind At a news conference three the next president of the event Wednesday at which she announced her endorsement. “This will have a huge posi-
Mr. Sanders’s proposals for new days before the South Carolina United States.” tive impact in the next 48 to
government spending to fill un- GOP primary, Mr. Cruz said Mr. The second-term governor Charleston. call of the angriest voices,” a 72 hours,” said state Rep. Neal
met needs, while others back Hil- Trump bore responsibility for the said she was backing Mr. Ru- “It was a living out of our comment she later said was Collins.
lary Clinton, who describes her Affordable Care Act and charged bio for what she called his faith,” he said. “South Carolina aimed at Republican candidate “I don’t know if [Mr. Rubio]
plans as far more realistic. that he would eliminate the gun- message about financial disci- taught that to the country.” Donald Trump, whose rise to will win the whole thing here,
The economists—who have all rights guaranteed by the Second pline in Washington and his Mr. Rubio also noted that the top of the Republican pack but it certainly will help,” Mr.
served as directors of the White Amendment. “A vote for Donald pledge to strengthen national he and Mrs. Haley were both was accompanied by harsh Collins added.
House Council of Economic Advis- Trump is a vote to erase the security and cut federal regu- children of immigrants—he is words about immigrants. That Republican rival Mr. Bush,
ers—took aim at Gerald Friedman, Second Amendment from the lations. of Cuban descent, she of In- sparked a fight with Mr. when told of the impending
an economics professor at the Bill of Rights,” Mr. Cruz said. Mr. Rubio thanked Mrs. Ha- dian—whose experiences re- Trump, who accused Mrs. Ha- endorsement, said he was dis-
University of Massachusetts-Am- In a news release, Mr. Trump ley, lauding her for how she flected the American dream. ley of being “weak on illegal appointed but that she would
herst, who has said the Sanders defended his opposition to abor- led a grieving state and helped Mrs. Haley gave the Repub- immigration.” have a role in his campaign
program could boost U.S. growth tion and the Affordable Care Act bring down the Confederate lican response to the State of Recent opinion surveys should he go on to win the
to 5.3% annually, up from 2.4% in and his support for gun rights, and battle flag after the slaying of Union speech in January. In show Mr. Rubio trailing nomination.
each of the past two years. “No threatened to sue Mr. Cruz. nine black worshipers at a those remarks, she urged peo- Mr. Trump by double digits in —Felicia Schwartz
credible economic research sup- —Josh Dawsey church last summer in ple to not follow “the siren South Carolina, but contributed to this article

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A6 | Thursday, February 18, 2016
Newer Phones Aren’t Easy to Crack
BY JACK NICAS
AND ROBERT MCMILLAN
The legal fight around the
locked iPhone of one of the
San Bernardino shooters high-
lights the growing role of en-
cryption in digital life—and
the intensifying battle be-
tween tech companies and the
government over the proper
bounds of the technology.
Encryption scrambles data
so that it is unreadable until
unlocked with a unique key.
Apple Inc. and Alphabet Inc.’s
Google thrust the issue into
the spotlight in 2014, when
they issued new versions of
their software that automati-
cally encrypted data stored on
phones, such as contacts, pho-
tos and some text messages.
Moreover, Apple and Google,
which together power more
than 90% of the world’s smart-
phones, said they wouldn’t be
able to break the encryption
codes themselves.
Law-enforcement officials,
led by Federal Bureau of In-
vestigation Director James
Comey, expressed alarm that
encrypted phones could ham-
per criminal investigations.
Such cases have been rare un-
til now, because much of the
data investigators seek can of-
ten be found elsewhere, such
as call records maintained by
telecom companies.
In the case of alleged shooter
Syed Rizwan Farook, however,
federal investigators say they
have no other options. They
persuaded a federal judge Tues-
day to order Apple to circum-
vent the security measures on
Mr. Farook’s iPhone 5C, hoping
to learn more about his con-
tacts and communications in
the final weeks of his life.
In essence, the government
wants Apple to help it unlock
the phone by trying every con-
ceivable password. At the gov-
ernment’s request, the judge
APPLE
Continued from Page One
ecuting about 155 search war-
rants for devices running Ap-
ple’s iOS 8 operating system, in
cases that include homicide, at-
tempted murder, sexual abuse of
a child, sex trafficking, assault
and robbery.
Apple and privacy advocates
responded on Wednesday that if
the Justice Department wins,
the data of every phone user in
the U.S. and world-wide will be
more vulnerable to hackers and
government spying.
“It’s not really a question of
security versus privacy. It’s se-
curity versus security,’’ said
Bruce Schneier, a fellow at Har-
vard University’s Berkman Cen-
ter for Internet and Society.
“Saying that all of these devices
must be insecure so the FBI can
have access would be a security
disaster for us as a society.”
Sundar Pichai, chief executive
of Alphabet Inc.’s Google, voiced
support for Apple. In a string of
tweets, he said “requiring com-
panies to enable hacking of cus-
tomer devices” and data could
present “a troubling precedent.”
As the fight between federal
officials and tech companies
over encryption has intensified
in recent years, talks between
the two sides have produced few
results, while Congress has
struggled to craft legislation on
the issue.
FBI leaders had been scan-
ning for a case that would make
a compelling argument about
the dangers of encryption. In the
San Bernardino phone, they
Court Vacancy Could Leave Patchwork of Legal Standards
BY JESS BRAVIN
AND BRENT KENDALL
WASHINGTON—A long pe-
riod with an eight-member Su-
preme Court could stymie de-
cisions on a host of issues that
long have divided the remain-
ing justices, 4-4, into conser-
vative and liberal blocs.
The opening left by Justice
Antonin Scalia’s death affects
cases pending before the court
as well as matters still working
their way through lower courts
that could arrive at the Su-
preme Court later this year or
in early 2017. A tie vote pre-
serves the status quo in the
law, so issues that split along
ideological lines likely will re-
main unresolved nationally un-
til a new justice is seated.
Immediately after Justice
Desired Data, Within and Without
The FBI wants access to data on the iPhone 5C of shooting suspect Syed Rizwan Farook. Much of this data also exists outside the phone.
Facebook Gmail Messages
Notes Videos iCloud
Phone Mail Safari
Source: the company, Justice Department
ordered Apple to override the
software that normally limits
these attempts, such as a fea-
ture that erases all the data on
the phone after 10 failed at-
tempts.
Depending on the password
that Mr. Farook used, there
could be more than two billion
combinations, which could take
a computer 5½ years to try, Ap-
ple estimates. In a court filing,
the Justice Department said it
can’t tell whether the auto-erase
feature is enabled, “therefore
trying repeated passcodes
risks permanently denying all
access to the contents.”
Such a solution would be
much harder on more modern
versions of the iPhone, which
ship with a cryptographic pro-
cessor that makes the machine
even harder to crack, said Dan
Guido, head of Trail of Bits Inc.,
a security consulting firm that
CEO Tim Cook, shown in New York in 2015, said Apple will resist an order to retrieve a phone’s data.
found what some law-enforce-
ment officials describe as a per-
fect test case.
Mr. Farook and his wife
opened fire at a Dec. 2 holiday
party for workers of San Bernar-
dino County, which employed
Mr. Farook, before they both
died in a police shootout.
The phone in question was
used by Mr. Farook but owned
by the county, which gave inves-
tigators permission to look at it.
County officials don’t know the
passcode Mr. Farook used, ac-
cording to a Justice Department
court filing.
Mr. Farook backed up his
data to cloud storage until about
a month and a half before the
Scalia’s death, Republicans
said the Senate should wait
until 2017, after the next presi-
dent is elected, to consider a
nominee. President Barack
Obama has said he intends to
nominate a candidate in the
coming weeks and expects
lawmakers to act on his pick.
In the short term, the ab-
sence of Justice Scalia dims
conservative hopes for cases
pending in the current 2015-16
term, including efforts to end
mandatory union dues for pub-
lic employees, rein in con-
sumer class-actions, expand
religious exemptions from Af-
fordable Care Act regula-
tions and protect Republican-
drawn legislative districts
from lawsuits alleging they
harm minority voters.
Resolution of other issues
U.S. NEWS
Data stored outside the phone
Email and social networks data, such as comments and shared
images, are stored on servers, accessible from anywhere.
Phone calls - Incoming and outgoing phone numbers and lengths of
conversations are saved by wireless carriers. The actual conversations are not.
Photos
Snapchat
The phone was issued by San Bernadino County with iCloud turned on.
The last iCloud backup was performed on Oct. 19.
Data stored only on the phone
44 days of information are on the phone.
Contacts
Data not saved
Phone conversations
has studied the iPhone’s design.
Had Mr. Farook used a
phone running Google’s An-
droid operating system, as-
sessing the encryption would
be more complicated. That is
because, unlike Apple, Google
doesn’t make most of the
phones that use Android. In-
stead, there are more than
4,000 different Android de-
vices made by more than 400
manufacturers, who use differ-
ent flavors of Android.
Google has allowed Android
users to encrypt a phone’s con-
tents since 2011, but many ha-
ven’t because it hurts the per-
formance of older phones. In
late 2014, Google began en-
crypting some phones by de-
fault with the release of Android
version 5.0, dubbed Lollipop, in-
cluding Google’s flagship Nexus
devices. But only about 35% of
Android devices now run ver-
attack. Apple has turned over
that data. But investigators sus-
pect there may be crucial evi-
dence that can only be found on
the phone itself.
The FBI wants Apple to help
it disable a feature that would
erase the phone after 10 unsuc-
cessful password attempts. That
would give investigators the
ability to make numerous tries
to find the password.
Apple said that to comply
with law enforcement’s wishes,
it would have to create a sepa-
rate operating system for the
phone, without the security
measures, to run in parallel with
the existing software. But once
that operating system is created,
could be put on hold the lon-
ger the position remains open,
affecting disputes on environ-
mental rules, gun rights, capi-
tal punishment, campaign fi-
nance and other matters.
Conservative hopes
could dim for cases
on gun rights, union
dues, class actions.
“Presumably, [the justices]
are going to pull in their heads
a bit on the high profile, politi-
cized cases,” said Daniel Ortiz,
director of the University of
Virginia’s Supreme Court Liti-
gation Clinic.
Because the Supreme Court
typically steps in when lower
THE WALL STREET JOURNAL.
SMS texts -
Stored by the
wireless carrier.
Data was backed up to iCloud until Oct. 19. During this time
data from Notes, Contacts, Photos, Messages and Video
apps could have been automatically sent to Apple servers.
Once iCloud backups stopped, subsequent Photos, Notes, Contacts,
Messages and Video would reside only on the device.
Dec. 2, date of shooting
Snapchat, Wickr, Cyber Dust and
other transitory communications
THE WALL STREET JOURNAL.
sion 5.0 or higher, according to turned over data from the
company data. phone that had been backed up
The Manhattan District At- to Apple’s iCloud service. That is
torney’s Office said in a Novem- another way in which investiga-
ber report that on some older tors can often obtain informa-
Android phones, investigators tion from encrypted phones.
know how to bypass passcodes. But the agent said Mr. Fa-
For some other Android devices, rook had last backed up the
Google can reset the passcodes phone on Oct. 19, about six
remotely, the report said. weeks before the Dec. 2 shoot-
Apple’s and Google’s smart- ings that killed 14 people.
phone encryption software ap- Wireless carriers can access
ply to data stored directly on a some standard text messages,
device, and some communica- and third-party apps, like
tions, such as Apple’s iMessage. WhatsApp, typically store us-
Many messages sent and re- ers’ correspondence.
ceived on smartphones are Google says it provides us-
stored elsewhere, such as Gmail ers’ Gmail messages when re-
correspondence retained on quired under a court order.
Google’s servers. Google said that it received
The government hasn’t speci- nearly 35,000 government re-
fied the information it thinks quests for user data in 2014—
may be on Mr. Farook’s phone. up from 15,000 requests in
In a court filing, an FBI agent 2010—and that it complies
said Apple, in response to a with the requests in about 65%
search warrant, had previously of cases.
The government’s action
presents Apple with a public re-
lations dilemma. In defying the
FBI, the company risks alienat-
ing consumers concerned about
terrorism and being blamed for
a future attack. On the other
hand, because many customers
and Internet activists care
deeply about privacy, Apple
risks a backlash if it complies.
In China, Apple’s largest
overseas market, the company
faces particular pressure from
human-rights activists not to
provide technological “back
doors” that could enable the
government to spy on citizens.
RICHARD DREW/ASSOCIATED PRESS
Many within Apple say they
view the issue as a moral one,
and Mr. Cook’s outspoken stand
marks a watershed moment in
his tenure as CEO. Unlike his
predecessor, the late Steve Jobs,
who avoided weighing in on po-
litical issues, Mr. Cook has dem-
onstrated a willingness to speak
out.
Within the Justice Depart-
Apple said, criminals and for- ment, some view the case as a
eign governments could circum- must-win, because it deals with
vent the security of any phone one of the less-complicated
simply by typing in the device’s problems raised by encrypted
ID number. technology—how to unlock a
A person familiar with Ap- suspect’s phone. Experts call
ple’s thinking said the govern- that retrieving “data at rest,’’ be-
ment’s suggested techniques for cause it is simply a question of
unlocking the iPhone would extracting data from a device in
work on even newer iPhones, investigators’ possession. If the
which have upgraded security government can’t win on that is-
systems walled off from the sue, officials fear, it will likely be
phone’s main systems. impossible to get courts to allow
A Justice Department spokes- them access to “data in mo-
woman said, “The judge’s order tion”—messaging apps, texts
and our request in this case do and other means of communi-
not require Apple to redesign its cating that are hard to monitor
products, to disable encryption in real time to detect plots.
or to open content on the —Pervaiz Shallwani
phone.’’ contributed to this article.
courts, each with jurisdiction them out of business.
over a state or group of states, If Justice Anthony Kennedy
reach different conclusions on sides with fellow conserva-
legal issues, a deadlocked Su- tives, the 4-4 split will leave
preme Court could extend a the restrictions in force and
patchwork of legal standards, maintain the precedent in the
with the same federal laws other Fifth Circuit states, Loui-
meaning different things in siana and Mississippi.
different parts of the nation. But the high-court decision
An abortion case set to be would have no effect else-
argued in March illustrates the where—such as in the Chicago-
situation: Last year, the Fifth based Seventh Circuit, which
U.S. Circuit Court of Appeals, last year struck down Wiscon-
in New Orleans, upheld a 2013 sin’s similar 2013 admitting-
Texas law requiring abortion privileges requirement.
clinics to meet the standards Similar stalemates are likely
of outpatient surgical facilities on gun rights, which Jus-
and doctors who perform the tice Scalia expanded with a
procedure to hold admitting 2008 opinion that for the first
privileges at a nearby hospital. time found that individuals
Texas says the law protects have a constitutional right to
the health of women seeking possess handguns.
abortions. Clinics argue the That 5-4 decision opened a
regulations actually aim to put wave of litigation over gun
Schumer
Starts to
Feel Heat
Of Leading
BY SIOBHAN HUGHES
WASHINGTON—Sen. Chuck
Schumer is getting a taste of
the trials that await him next
year as the likely Senate Dem-
ocratic leader.
Earlier this week, the New
York lawmaker drew fire from
Republicans after he said the
chamber should hold hearings
and vote in the battle over a
Supreme Court vacancy.
Then on Wednesday, he was
sharply criticized by the White
House for his national-security
record. Mr. Schumer, who in-
furiated the White House by
voting against the Iran nuclear
deal, complained that the
president’s budget short-
changed New York in home-
land-security funding.
“Sen. Schumer is somebody
that came out and opposed
the international agreement to
prevent Iran from obtaining a
nuclear weapon,” White House
spokesman Josh Earnest said.
“And when people look at the
facts here when it comes to
funding for homeland security,
they’ll recognize that he’s
wrong this time, too.”
A spokesman for Mr.
Schumer declined to comment
on Mr. Earnest’s remarks.
After more than 35 years in
Congress, Mr. Schumer is at
the center of a number of bat-
tles as never before. It is giv-
ing him an early dose of the
scrutiny—especially from Re-
publicans—he can expect as
the Senate’s top Democrat.
Mr. Schumer, whose Wash-
ington career began in an era
in which centrism was a pre-
vailing Democratic philosophy,
faces a particular challenge of
figuring out how to manage a
caucus in which liberals are a
rising influence. And he will
have to decide whether to be a
fighter in the mold of Senate
Minority Leader Harry Reid of
Nevada, who is retiring after
his current term, or reach
across the aisle.
Following the death of Jus-
tice Antonin Scalia, Mr.
Schumer, a senior member of
the Judiciary Committee, has
asserted himself in the coming
Supreme Court fight. He ac-
cuses Senate Majority Leader
Mitch McConnell (R., Ky.) of
going too far by saying the va-
cancy shouldn’t be filled until
there is a new president.
“We’re asking for a hearing
and a vote—we’re not asking
for Congress to be a rubber
stamp,” Mr. Schumer said
Wednesday on a call organized
by the Progressive Change
Campaign Committee, a net-
work of almost a million activ-
ists that frequently pushes
Democrats to take more left-
of-center positions.
Republicans accuse him of
selective outrage, pointing to a
2007 speech in which he said
that Bush administration ap-
pointees Justices John Roberts
and Samuel Alito left the court
“dangerously out of balance”
and Democrats “should reverse
the presumption of confirma-
tion” and block nominees who
were “out of the mainstream.”
“Perhaps Democrats should
find a better messenger,” said
Don Stewart, a spokesman for
Mr. McConnell, with whom Mr.
Schumer would have to deal
with regardless of who con-
trols the Senate in 2017.
—Carol E. Lee contributed
to this article.
regulations, yielding different
outcomes among lower courts
that the Supreme Court even-
tually would have to resolve.
In December, Justice Sca-
lia joined a dissent by Justice
Clarence Thomas complaining
the court was dragging its feet
in striking down other gun
regulations. Now, additional
clarification of Second Amend-
ment rights could be pushed
even further off.
Justice Scalia’s absence also
portends a likely halt in the
conservative push to roll back
campaign-finance regulations,
symbolized by the 2010 Citi-
zens United case, in which a
5-4 vote invalidated limits on
political spending by corpora-
tions and unions.
—Jacob Gershman
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * * NY Thursday, February 18, 2016 | A7

WORLD NEWS
U.S. Rebukes Beijing Over Missiles Slumping
Exports
Kerry says China’s
Jolt Asian
C HI NA TA IWA N
president broke a
pledge not to militarize CHINA’S

disputed islands
The Obama administration
sharply criticized Chinese
President Xi Jinping on
Wednesday after charging that
China’s military had deployed
batteries of advanced missiles
on a disputed South China Sea
island.
By Chun Han Wong in
Beijing and Gordon
Lubold in Washington
Secretary of State John
Kerry said the deployment was
at odds with a pledge made by
Mr. Xi while visiting the White
House last year to refrain from
militarizing clusters of dis-
puted islands throughout the
South China Sea.
Chinese officials, while not
directly confirming or denying
U.S. and Taiwanese claims
about the missiles, said they
plan to keep strengthening de-
fensive capabilities in the
South China Sea.
While both sides have no
appetite for open conflict,
their entrenched positions are
narrowing their options for a
diplomatic solution, while fuel-
ing the potential for dangerous
flare-ups.
U.S. officials said Wednes-
day that they had confirmed
commercial satellite imagery
appearing to show the deploy-
ment of surface-to-air missiles
on Woody Island in the dis-
puted Paracel chain. The com-
mercial images, from the firm
ImageSat International NV, in-
dicate the missiles were de-
ployed sometime after Feb. 3.
The U.S., which challenged
Beijing by sailing warships and
flying bombers near Chinese-
held islands, had warned
against China’s buildup in a re-
gion where both sides increas-
ingly find themselves locked
into opposing positions.
Satellite images that purport to show surface-to-air missiles on
Woody Island on Feb. 14, while there was no presence on Feb. 3.
“When President Xi was
here in Washington, he stood
in the Rose Garden with Presi-
dent Obama and said China
will not militarize in the South
China Sea,” Mr. Kerry said on
Wednesday. “But there is every
evidence, every day that there
has been an increase of milita-
rization of one kind or an-
other. It’s of serious concern.”
The spat appeared to douse
any lingering warmth from Mr.
Xi’s state visit to the U.S. For
its part, just a month after the
Obama-Xi summit, the U.S.
started testing China’s posture
with what it labeled as free-
dom-of-navigation patrols near
islands controlled by Beijing.
Neither side is likely to back
down. China’s Communist
leaders have based their politi-
cal legitimacy in large part on
their ability to defend national
sovereignty. And President Ba-
rack Obama promised South-
east Asian leaders gathered in
Economies
So u t h
China ‘9-DASH LINE’
Se a
MARITIME
CLAIM
Woody Island
BY JAKE MAXWELL WATTS
PARACEL ISLANDS
SINGAPORE—Exports from
Singapore’s bellwether econ-
P H ILIP P IN E S
SPRATLY ISLANDS omy slumped to near their
China, Taiwan, Malaysia, Brunei, weakest level since the global
Philippines and Vietnam claim financial crisis eight years ago,
VI ETNAM sovereignty over all or parts of illustrating new pressures on
these scattered islands and reefs. Asia’s export-dependent econ-
Subi Reef Hughes Reef omies.
The trend has worrying im-
Gaven Reefs plications for the global econ-
Mischief Reef omy, which has been roiled
Fiery Cross Reef
this year by market volatility
Johnson South Reef spilling out from China and
IMAGESAT INTERNATIONAL NV
Cuarteron Reef steep falls in the prices of oil
Reefs China is building and other commodities. Singa-
into artificial islands pore’s small, export-dependent
economy is seen as a proxy for
the broader state of Asian
BRUNEI
300 miles trade.
Singapore’s nonoil domestic
300 km
I ND O NE S I A exports fell 9.9% in January
M AL AYS I A from a year earlier, official
THE WALL STREET JOURNAL. statistics showed Wednesday,
as shipments to China, its
California this week that the islands it was building in the controversy, stressing China’s largest trading partner, con-
U.S. would help counter Bei- Spratlys. The Spratlys chain, benign intentions and its right tracted at a faster pace. The
jing’s assertiveness. which is claimed in whole or in to place “limited and neces- data reflect the slowest pace
“The risk of a worsening tit- part by six governments, lie sary defensive facilities” on its of economic expansion in
for-tat game of strategic sig- farther south than Woody. sovereign territory. China in 25 years, as Beijing
naling has to be watched Concern that China’s mili- The State Department said pursues a bumpy shift from
closely, especially the possibil- tary activity has been at odds that U.S. officials are pursuing investment to consumption-
ity of miscalculation,” said with its public statements has further confirmation of the ac- led growth.
Rory Medcalf, a professor of been rising in Washington. The tivity on Woody Island, but South Korea, which sends a
Asia-Pacific security issues at chairman of the Senate Armed that the missile deployment quarter of its exports to China,
Australian National University. Services Committee, Sen. John would prompt an urgent meet- said this month that exports
Beijing has been steadily McCain (R., Ariz.), lamented ing with Chinese officials. fell 18.8% in January. Indone-
bolstering its military capabili- during a recent hearing that Woody Island, known as sia said exports contracted
ties in the South China Sea, Beijing’s actions speak louder Yongxing in Chinese, is home 20.7% last month. Even India,
which it claims almost in its than its words. to Beijing’s only large opera- which has strong domestic de-
entirety. In May, China out- “China has constructed tional airfield in the South mand, said exports fell in Jan-
lined plans to change the focus these features with the inten- China Sea. It is also claimed by uary for the 14th straight
of its armed forces toward tion of using them to sustain a Vietnam and Taiwan. month, down 13.6%. All were
maritime warfare to tackle permanent military presence U.S. and Taiwanese officials compared with the same
new security challenges, in- in this maritime region and, if didn’t elaborate on the missile month a year earlier.
cluding the U.S. shift of mili- need be, project military type and scale. Military ex- What began more than a
tary and other resources to power throughout the South perts say the weapons appear year ago as a slowdown in
Asia and “provocative actions” China Sea,” he wrote in a Jan. to be China’s HQ-9, a medium- commodities exports has
from neighboring countries. 29 letter, seen by The Wall to-long-range, radar-guided spread to other goods as fall-
At his White House summit Street Journal. missile system. ing global growth hurts con-
in September, Mr. Xi pledged Chinese officials voiced ex- —Peter Landers in Tokyo sumer and corporate spend-
that China “does not intend to asperation with what they de- and Josh Chin in Beijing ing—even in countries that are
pursue militarization” of the scribed as a media-concocted contributed to this article. less reliant on commodities.

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A8 | Thursday, February 18, 2016
Relief Convoys Reach Besieged Syrians
Trucks deliver supplies
to four towns, two
surrounded by rebels,
two by regime forces
BY SAM DAGHER
BEIRUT—The United Na-
tions and other agencies deliv-
ered aid Wednesday to some
besieged areas of Syria, but
hopes that this would nudge
along a limping peace process
were tempered by a continuing
regime offensive in the north
and an opposition vow to re-
verse battlefield losses.
The bulk of 100 trucks car-
rying food and medical sup-
plies delivered the aid to the
opposition-held Damascus sub-
urbs of Madaya and Moad-
hamiya. The pro-regime Shiite
villages of Fouah and Kafraya
in the northern province of
Idlib, which are encircled
mainly by Islamist rebel groups
including the al Qaeda-linked
Nusra Front, also received hu-
manitarian relief.
The deliveries were delayed
by hours so they would reach
both sides simultaneously, Syr-
ian state media reported.
“The channeling of aid is very
positive,” said Farah al-Atassi, a
senior member of the opposition
delegation formed to conduct
peace talks with the regime.
But she was quick to add
that the recent setbacks for
rebels, most notably around
the northern city of Aleppo and
the southern city of Daraa, are
forcing the opposition and
their main regional backers—
Qatar, Saudi Arabia and Tur-
Dozens Killed by Blast in Turkey’s Capital
BY DION NISSENBAUM
AND EMRE PEKER
ISTANBUL—A powerful car
bomb exploded in the center of
Ankara on Wednesday, killing
at least 28 people and wound-
ing 61 in an attack that tar-
geted a military convoy, ac-
cording to Turkish officials.
The blast hit Turkey’s capi-
tal during a busy evening rush
hour, creating a massive fire-
ball that consumed nearby cars
and buses. Panicked residents
rushed for safety as a dark
plume of smoke rose over the
city.
The explosion rattled a
country that is becoming a
more frequent target of such
attacks. While there was no im-
mediate claim of responsibility,
Turkish officials said their ini-
tial suspicions were focused on
the outlawed Kurdistan Work-
ers’ Party, or PKK, which has
been embroiled in a deadly
conflict with the government
since a two-year cease-fire
broke down last summer.
Recent attacks have also
been linked to Islamic State ex-
OPEC
Continued from Page One
market rocked by surging pro-
duction that outpaces demand
by more than one million bar-
rels on any given day. Prices
have fallen by two-thirds since
June 2014, throwing global
markets into turmoil and rav-
aging OPEC countries like
Venezuela and Nigeria and
nonmember Russia.
“Iran is saying, ‘We are not
playing with you,’ ” said John
Hall, chairman of the London
consultancy Alfa Energy.
“OPEC cannot do anything
without Iran.”
The broken-down oil talks
also added a new layer to the
heightening tensions between
Saudi Arabia and Iran, long-
time rivals who are the Middle
East’s dominant powers for
the Sunni and Shiite strains of
Islam, respectively.
Iran and Saudi Arabia are
backing opposing sides on
several battlefields, including
Syria, where Iran supports
President Bashar al-Assad and
Saudi Arabia supports opposi-
tion groups who want to un-
seat him in the country’s five-
year war. Saudi Arabia is also
leading a military coalition in
Yemen fighting Shiite Houthi
rebels whom Iran says it sup-
ports politically.
The tensions reached new
heights in January when Irani-
ans angered by Saudi Arabia’s
execution of a prominent Shi-
ite cleric stormed and set fire
to Saudi diplomatic buildings
Rebel fighters escorting a Syrian Arab Red Crescent aid convoy toward two villages in Idlib province, Fouah and Kafraya, Wednesday.
key—to review their options.
They are considering signifi-
cantly ramping up military sup-
port for fighters inside Syria,
with talks to begin in the Saudi
capital on Thursday, she said.
“We are hoping more support
will go to our freedom fighters”
to help change the “balance of
power on the ground.”
There were signs of opposi-
tion attempts at a comeback in
the south. Rebels launched a
counteroffensive northwest of
tremists, who were accused of
carrying out a suicide bombing
in Istanbul last month that
killed 10 German tourists.
No matter who is responsi-
ble, Wednesday’s blast is likely
to empower Turkey’s military
hawks pushing for a more ag-
gressive response to the in-
creasing threats destabilizing
Turkey, said Sinan Ulgen, a for-
mer Turkish diplomat who is
now a visiting scholar at the
Europe branch of the Carnegie
Endowment for International
Peace. “There is no good sce-
nario after this,” he said.
Wednesday’s blast came as
President Recep Tayyip Erdo-
gan was preparing to meet
with his National Security
Council to discuss a deepening
conflict with Kurdish insur-
gents in the region.
Along with the fight against
Kurdish separatists in south-
east Turkey, Ankara has
launched a new attack on U.S.-
backed Kurdish militants
known as the YPG in neighbor-
ing Syria.
Over the past five days, the
Turkish military has repeatedly
Competitive Landscape
While OPEC’s production has bounced back since the oil glut of the
1980s, other producers have stepped in to gain market share.
Share of global oil production
100%
75
50
25
0 Zanganeh said the Saudi
’65 ’70 ’80
Sources: BP Statistical Review
in Iran. Saudi Arabia then cut
all diplomatic and commercial
ties with the Islamic Republic.
The countries are also in-
creasingly at odds in the oil
business since Western sanc-
tions against Iran were lifted
in January. Tehran and Riyadh
are waging a price war as they
approach refineries in Europe,
a market that Saudi Arabia
swooped into when Iran was
forced out by sanctions.
An Iranian official cited
Saudi Arabia’s production in-
crease while Iran was crippled
by sanctions as a reason to
snub any output deal now.
The conflicts between
OPEC’s two most influential
members have made it in-
creasingly difficult to coordi-
WORLD NEWS
Daraa on Wednesday, accord-
ing to residents and opposi-
tion activists.
Rebels have lost two key
towns around Daraa since late
January. U.N. agencies have
warned about thousands of
people fleeing their homes in
the south, in an exodus similar
to what happened around
Aleppo this month.
A major escalation around
Aleppo by the regime and its
allies Iran and Russia since the
Authorities say a convoy of military-service buses was targeted.
shelled the YPG forces that
have seized new ground in
northern Syria from rival fac-
tions backed by Turkey and
Saudi Arabia.
Turkey has rebuffed calls for
a cease-fire from Washington
and other Western capitals,
and Wednesday’s attack ap-
peared likely to harden An-
kara’s resolve.
Hours after the attack, Mr.
Erdogan accused the attackers
of being “pawns” who were
U.S.
Other
non-OPEC
Saudi Arabia
Rest of OPEC
’90 ’00 ’10
THE WALL STREET JOURNAL.
nate action within the 13-na-
tion cartel that controls more
than a third of the world’s oil.
Saudi Arabia and other
supporters of production lim-
its didn’t offer official reac-
tions to Iran’s inaction, but
some were privately dis-
mayed.
OPEC’s president, Qatar’s
oil minister Mohammed Bin
Saleh al-Sada, led a delegation
to Tehran on Wednesday to
try to persuade Iran’s oil min-
istry to join in limits. After a
two-hour meeting over pas-
tries, the group left without
issuing a statement or joining
Mr. Zanganeh at a news con-
ference. “Not very encourag-
ing,” said an OPEC official
from a Gulf Arab country.
start of February has helped
President Bashar al-Assad’s
government regain significant
ground.
Syrian Kurdish militias
backed by the U.S., but also
friendly toward Russia and
Iran, capitalized on the regime
offensive to make gains in the
same area—at the expense of
rebel factions backed by Tur-
key and Saudi Arabia. Turkey
shelled Kurdish positions
across the border to try to stop
ASSOCIATED PRESS
playing a dangerous game.
“Those who think they can
steer our country and our peo-
ple away from our goals by us-
ing terrorist organizations will
see that they have failed,” he
said.
In Ankara, some government
officials suggested that the at-
tacker may have been backed
by one of Turkey’s rivals, such
as Iran or Russia.
In recent days, Turkish
Prime Minister Ahmet Davuto-
The attempt to get Russia
and OPEC on the same page
represented a departure for
Saudi Arabia, which had been
convinced that limiting output
only helped rival producers.
With prices so low, Saudi
Arabia saw the talks with Rus-
sia, Iran and others as an ex-
ercise in building trust, said
another OPEC official from a
Persian Gulf Arab country.
Production curbs are difficult
to monitor, and Saudi Arabia
has accused Russia, Iran and
others of violating agreements
in the past.
U.S. oil prices settled up
5.62% Wednesday at $30.66 a
barrel, as expectations that
Iran would reject the Saudi
plan altogether faded. Mr.
agreement with Russia and
others was a “first step and
more steps must follow.”
“Short-term, if OPEC is able
to agree on anything, that’s a
step in the right direction,”
said David Meaney, portfolio
manager at BP Capital LP, an
investment firm with about $1
billion run by Oklahoma oil-
man T. Boone Pickens. “People
believed that Iran would blow
up the agreement.”
But Wednesday’s talks of-
fered little hope that the
world’s oil-supply surplus
would be addressed soon.
Surging output from Saudi
Arabia, Iraq, Russia and the
U.S. were part of the reason
for the supply glut. Output has
fallen in the U.S., with data re-
leased Wednesday showing
North Dakota’s fell to its low-
est levels since August 2014.
* *** THE WALL STREET JOURNAL.
crushed. The U.S. and its West-
ern allies are more focused on
defeating the extremist group
Islamic State and stemming the
flow of refugees into Europe.
Russia, the U.S. and other
countries with stakes in the
Syrian war will meet on Friday
in Geneva to discuss imple-
menting a cease-fire agreed to
in Munich last week, and out-
lined in a U.N. Security Council
resolution in December, Rus-
sian deputy foreign minister
Gennady Gatilov told the news
agency Interfax.
Aid agencies say all four
towns that received assistance
on Wednesday are in dire need
of help. All parties in the con-
flict are accused by rights
groups of using access to food
as a weapon. Regime forces—
both the army and local and
foreign militias allied with it—
have done so more systemati-
AMMAR ABDULLAH/REUTERS
cally, these groups say, in an at-
tempt to pressure rebels.
Moadhamiya reached a truce
with the regime at the end of
2013 after a crippling siege that
reduced people to foraging for
foliage to survive. The siege
was imposed again last year af-
ter rebels in the town refused
them again on Wednesday, de- to surrender completely.
spite calls from Washington Residents of Moadhamiya
and other Western capitals to said while there was tremen-
halt the days of attacks. dous international pressure at
The regime and its allies the moment to bring them and
pressed their offensive around other besieged communities aid,
Aleppo on Wednesday even as they doubted this would last.
aid was being delivered else- “We just don’t know if this
where, clashing with rebels on will continue,” said Ammar
the south side of the city. Ahmed, a resident and activist
Still focused on toppling Mr. reached by Skype. “Based on
Assad, Saudi Arabia and Turkey our past experiences, we do
have signaled they won’t sit not trust the regime or even
back and watch the rebels be the U.N.”
Iraqi Kurds
glu has publicly accused Mos-
cow of using Kurdish militants
Agree to
in Syria and Turkey to destabi-
lize the country.
Moscow and Ankara have
Deal on Oil
been feuding since November,
when Turkish jets shot down a
Russian bomber carrying out
Revenues
airstrikes near the Turkey- BY TAMER EL-GHOBASHY
Syria border.
With Russia helping Tur- BAGHDAD—Iraq’s Kurdistan
key’s Kurdish rivals in Syria by Regional Government provi-
carrying out airstrikes close to sionally agreed to funnel all of
the Turkish border, the fight is its oil production through the
becoming more volatile. central government in ex-
“The Kurdish issue in Tur- change for Baghdad’s paying
key stands at the precipice of the salaries of the Kurds’ mu-
becoming an international nicipal employees.
problem, involving all sorts of Under the agreement, the
nefarious actors from the Syr- semiautonomous region in
ian civil war,” said Soner Ca- northern Iraq would sell its oil
gaptay, director of the Turkish through the state-owned Oil
Research Program at the Wash- Marketing Company, Kurdish
ington Institute for Near East officials said on Wednesday.
Policy. Although officials from both
“This could be a dangerous sides said the agreement is yet
turn for Turkey,” he said. to be formalized, the move
“When the Kurdish issue be- marks a sharp change in Kurd-
comes internationalized, An- ish policy in its acrimonious
kara can effectively forget solv- battle with Baghdad over con-
ing this problem on its own trol of the area’s oil revenues.
because there will be so many The Kurds also cast doubt
spoilers.” on the ability of cash-strapped
Baghdad to honor the pro-
posal, which was floated by
But even if OPEC producers
and Russia decided to limit
output to January levels, de-
mand wouldn’t catch up with
Iraqi Prime Minister Haider al-
Abadi earlier in the week.
A costly fight against Is-
lamic State, coupled with low
supply until late this year. oil prices, has left both Bagh-
Venezuela, Russia and Iran dad and the Kurdish govern-
are all facing exceptional chal- ment facing financial crises.
lenges. Caracas’s economy is Kurdistan itself has strug-
contracting after years of so- gled to pay public employees
cial overspending, Moscow is their full salaries over the past
subject to international sanc- year, leading to protests and
tions while Tehran is only worker strikes in the northern
starting to recover from de- region, which was previously
cades of isolation. known for relative prosperity
Limiting production would and stability.
clash with Iran’s national pri- Kurdistan on Wednesday
orities now that sanctions said it employs 1.4 million peo-
over its nuclear program have ple whose salaries amount to
been lifted. Iranian officials about $88.6 million monthly. It
have said they are well on said about $30.4 million of
their way to increasing output that total is allocated to Pesh-
by one million barrels a day merga forces, the Kurdish
this year and won’t consider fighters who have led impor-
limits until then. tant campaigns against Islamic
There are doubts that Iran State.
can ramp up production as For the Kurds, the pay-
quickly as its oil ministry ments to the Peshmerga are
says. Tehran recently canceled critical because of rising con-
a forum in London to unveil cerns about attrition and poor
terms for international oil morale just before a planned
companies to work in Iran be- offensive to retake the city of
cause the contracts haven’t Mosul, which Islamic State
been completed. Iran says it has declared as its Iraqi capi-
needs $30 billion in oil-and- tal.
gas-field investments to A spokesman for Mr. Abadi
achieve its long-term produc- tried to allay concerns over
tion goals. Baghdad’s fiscal fitness. “The
Another missing piece for Iraqi government has managed
OPEC is Iraq. The country has to cover the salaries of em-
contributed to the global glut ployees in the rest of the coun-
with record production reach- try despite the decline in oil
ing 4.35 million barrels a prices,” said the spokesman,
day—the second-most in Saad Al Hadithi. “The govern-
OPEC—as it furiously pumps ment will do the same with
oil to generate revenue to Kurdistan employees.”
fight Islamic State. —Ghassan Adnan
—Tim Puko and Safa Majeed
contributed to this article. contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * * Thursday, February 18, 2016 | A9

WORLD NEWS

Obama Pope Pleads for Migrants at Border

Plans to BY DUDLEY ALTHAUS about reconciliation and that

Visit Cuba AND FRANCIS X. ROCCA

CIUDAD JUÁREZ, Mexico—

has consequences.”
Some 600 invited guests
walked a half-mile along the le-

In March Pope Francis stood on the U.S.-

Mexico border and issued a
powerful plea for justice for the
vee bounded by fences and
close enough to see and hear
the crowds across the way in
BY CAROL E. LEE many thousands of poor, un- Ciudad Juárez.
AND FELICIA SCHWARTZ documented migrants striving “This is very special to me,”
to cross the borders of the U.S. said Hope Banuelas, a 22-year-
WASHINGTON—President and other developed countries. old volunteer heading to the le-
Barack Obama will travel to “The human tragedy that is vee. She said her 11-year-old
Cuba next month, according to forced migration is a global brother was murdered in Mex-
a senior U.S. official, the first phenomenon today,” the pontiff ico, where she and her family
such visit by a sitting Ameri- said at a Mass just a few hun- lived part of the time. “I don’t
can president in 88 years. dred yards from the Rio think you should think of some-
Mr. Obama’s trip would Grande, which separates the one as legal or illegal. The pope

GREGORY BULL/ASSOCIATED PRESS

come just 15 months after the country with the world’s big- doesn’t think that way. God
U.S. and Cuba announced plans gest economy and its impover- doesn’t think that way,” she said.
to restore ties after a diplo- ished neighbor. “No more Earlier in the day, Pope
matic freeze lasting more than death! No more exploitation! Francis also denounced the of-
50 years. The White House is There is still time to change, ten poor working conditions in
expected to officially announce there is still a way out and a the border region’s economy.
the visit on Thursday. chance, time to implore the “God will hold accountable
The visit would mark a his- mercy of God.” the slave-drivers of our day,
toric forward stride in U.S.- Before the Mass, Pope Fran- and we must do everything we
Cuba relations. The last, and cis ascended a specially built People rushed to see Pope Francis celebrate Mass in Ciudad Juárez, Mexico, on Wednesday. can to make sure that these sit-
only, sitting U.S. president to ramp a few feet from the Mexi- uations do not happen again.
visit Cuba was Calvin Coolidge can levee to pray before a large poverty and gang violence that and extorted.” Sen. Ted Cruz have each called The flow of capital cannot de-
in 1928. Relations between the cross commemorating the sets thousands on the migrant This city, the final stop for for building a wall along the cide the flow and life of peo-
two countries were severed in thousands of migrants who trail. thousands of migrants before entire border, and few Republi- ple,” he said.
1961, shortly after the Cuban have died through the years at- “Here in Ciudad Juárez, as in crossing the border with El can candidates support an am- Daniel Melgar, a 24-year-old
revolution led by Fidel Castro. tempting to cross the border. other border areas, there are Paso, Texas, has earned infamy nesty program for the millions field hand and carpenter, said
The U.S. has since maintained He then turned toward hun- thousands of immigrants from for gang violence and the of Hispanic migrants already he left his gang-ruled slum in
an economic embargo on Cuba dreds of faithful gathered on Central America and other scores of poor young women living illegally in the U.S. Honduras shortly after Christ-
and a ban on travel to the is- the U.S. river bank and blessed countries, not forgetting the killed here in recent decades. The Vatican rejected com- mas with only $10 in cash. He
land nation just 90 miles off them with the sign of the cross. many Mexicans who also seek Gazing a few hundred yards ments by Mr. Trump last week has heard of the border fences,
the coast of Florida. Pope Francis spent the last to pass over ‘to the other north—across the concrete-en- that the pope was acting politi- the patrolling immigration
News of the trip quickly day of his visit to Mexico in side,’ ” the pope said in his tombed stream, three chain- cally by defending migrants. agents and the danger of cross-
drew criticism Wednesday this border city, an economi- homily before more than link fences, a rail line and U.S. “The pope is not a politician,” ing the desert by foot. “No
night from opponents of Mr. cally dynamic but turbulent 200,000 people gathered at a Border Patrol vehicles—the Vatican spokesman Father Fed- fence is going to stop me,” Mr.
Obama’s effort to restore rela- city that embodies all the tra- fairgrounds. “Each step, a jour- pope greeted hundreds of faith- erico Lombardi said. “But his Melgar said.
tions with Cuba. Critics accuse vails the pontiff has deplored ney laden with grave injustices: ful gathered on the U.S. levee. moral authority has a political —Tamara Audi in El Paso
the president of making con- during his tour: the inequality, the enslaved, the imprisoned Donald Trump and Texas impact. He speaks to politicians contributed to this article.
cessions to the Castro regime
before securing progress on
human rights and other issues.
The president’s decision to
travel to Cuba early in 2016,
rather than toward the end of
Venezuela Tries to Prop Up Crumbling Economy
his term, suggests a White BY KEJAL VYAS vised address, were part of a programs, also known as mis- model but rather an adjust- cheapest.
House desire to use a presi- package of measures designed sions. ment in prices,” said Alejandro Starting Friday, Venezue-
dential visit to try to influence CARACAS—Venezuela Presi- to help the government raise However, economists said Grisanti, a prominent Venezu- lans will fill their tanks with
key policy decisions and not to dent Nicolás Maduro raised money to offset a plunge in oil the measures fell short of the elan economist. 95-octane gasoline at a price
simply check a box on a his- domestic gasoline prices prices that has created a structural changes needed to The International Monetary of 22 bolivars a gallon, up
toric sojourn. Wednesday for the first time shortfall in its budget that revive the country’s state-led Fund says Venezuela’s econ- from 0.4 bolivars a gallon, Mr.
Since Mr. Obama announced in nearly two decades and de- reaches an estimated 20% of economy. For instance, Mr. omy will shrink 8% this year Maduro said.
the Cuba policy shift in De- valued the local currency as annual economic output. Maduro didn’t dismantle Vene- while inflation hits 720%. Mr. Maduro maintained the
cember 2014, the two coun- part of a series of steps aimed “The new system is win- zuela’s complicated system of For Venezuela, raising gaso- country’s multitiered exchange
tries have restored diplomatic at stemming the country’s win,” Mr. Maduro said, noting price controls, including cur- line prices is a deeply sym- system, devaluing the stron-
relations and reached agree- deepening economic crisis. that proceeds from gasoline rency controls, that have led bolic step. It has long subsi- gest bolivar-to-U. S. dollar rate
ments on direct commercial The moves by Mr. Maduro, sales will go to pay for his to widespread shortages. dized its gasoline, which for by 37% to 10 bolivars per
airline flights and mail service. announced in a four-hour tele- leftist government’s social “There’s no change in the years has been the world’s greenback.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A10 | Thursday, February 18, 2016
CHINA
Continued from Page One
down prices, profits and job
opportunities.
The struggles in Suizhou
show how China’s slowdown is
broad and deep and hard to fix.
It has fueled volatile market
trading around the world and
has contributed to anxiety
about potentially stalled U.S.
growth. Domestic overproduc-
tion means China is now
spending less overseas, while
businesses that sell to China
are bracing for possible protec-
tionist moves aimed at prop-
ping up local companies. And
with Chinese demand at risk,
its industrial giants with idle
capacity are looking to capture
market share abroad, including
construction and railway
equipment makers.
The government has made a
priority of eliminating “zombie
companies,” kept alive with
loans to produce unneeded
goods, to clear the path for
more vibrant parts of the econ-
omy. The squeeze won’t be
easy because in small, remote
places such as Suizhou, over-
built industries are often the
economic backbone.
Chinese manufacturing re-
mained slack in January, in-
cluding the weakest reading
for the government’s official
purchasing managers index
since August 2012. Chinese
steel production fell last year
for the first time in over three
decades. Bank and utility credit
grades are getting cut, as rat-
ing firms do math that sug-
gests looming debt problems.
The next phase
China’s future is dependent
on spreading opportunity more
widely. While Shanghai and
other gleaming metropolises
on the coast powered the first
decades of market liberaliza-
tion, Beijing is now counting
on smaller cities for the next
phase. The government aims to
urbanize 100 million lower-in-
come people within five years
to expand a middle class that
can afford movies and medi-
cine, and sustain China’s up-
ward trajectory.
With a population of 2.5
million, Suizhou is one of
about 130 smaller cities in
China at the threshold of this
effort, acting as magnets for
Little Engine
Smaller cities such as Suizhou
have grown faster than China as
a whole, but they've also slowed.
16% Annual GDP growth
14
Suizhou: 8.8%
12
10
8
6 China: 6.9%
’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15
Sources: Suizhou government; National
Bureau of Statistics
THE WALL STREET JOURNAL.
LIVERY
Continued from Page One
cusing on revamping their im-
age to overcome a basic
problem, which is the reluc-
tance of public-relations people
to join the group.
Francis Ingham, the current
master of the Public Relations
Practitioners, plays down the
notion of an image problem
slowing their progress. “In the
grand scheme of the history of
London,” he says, “15 years
isn’t such a long time.”
There are 110 livery compa-
nies in London, some of which
trace their history to the 12th
century. Liverymen vote for
London’s Lord Mayor and the
city’s sheriffs, whose roles are
now largely symbolic. They at-
tend elaborate banquets where
they wear black tie, drink from
a goblet called the “loving cup”
and raise substantial sums for
good causes.
To gain full status, a group
needs to show it can raise lots
of money, attract at least 100
members and last for hundreds
of years. The Worshipful Com-
pany of Armourers and Brasiers
is still in existence, and it was
founded in 1322. (It isn’t clear
why “worshipful” became part
of the groups’ names. It may be
because they met in churches,
says Nigel Pullman, chairman of
the Livery Committee, the gov-
erning body of the groups.)
Cement-mixer bodies are stored at Suizhou’s Hubei Aoma Special Automobile Co., a once-humming factory that is now all-but-defunct as orders have dropped off.
turning farmers into better-
paid urban workers and build-
ing new markets for local busi-
nesses. Disposable incomes of
city dwellers in Suizhou ran
about $3,470 per person in
2015, according to the govern-
ment. That is more than 40%
above what its rural residents
earned but less than half the
nearly $8,100 enjoyed in
Shanghai.
“Cities stuck in the middle,
they just don’t know what to
do,” says Michele Geraci, head
of an economic policy program
at Nottingham University’s
campus in the eastern Chinese
city Ningbo. After speaking
with officials in various gov-
ernments around the country,
Beijing is counting
on China’s smaller
cities to help expand
the middle class.
he says, many are in “industri-
alization limbo” between rural
and urban.
Today’s slowdown is partly
indigestion from an earlier
stimulus. New tech companies
and a wave of industrial up-
grading are concentrated on
the coast, while a recent break-
down in China’s financial mar-
kets is only narrowing the op-
tions for companies wanting to
expand.
To clear the way for new
growth, Chinese leaders have
identified the supply side of
the economy as the focus for
policy this year. They want to
weed out the overhang of ex-
cess capacity blighting many
corners of the economy.
The funk is apparent in sea-
board eastern cities such as
Rugao and Nantong, which are
suffering from excess ship-
building capacity and swelling
ranks of jobless. Too many pro-
ducers of plate glass in the
northern city of Shahe have led
to factory closings in what lo-
cals like to call China’s Toledo.
On the island province of Hai-
nan, where small time fisheries
have helped make China the
world’s biggest producer of
Organizations of London’s top trades, called livery companies, elect the city’s sheriffs and Lord
Mayor, as shown here in 1930. Now, public-relations professionals want to join the club.
Several new industries have
breezed through the acceptance
process. The Worshipful Com-
pany of Environmental Cleaners
(motto: “Tergere Est Servare,”
To Clean Is To Preserve) joined
the livery ranks in 1986. The
Worshipful Company of Man-
agement Consultants (“Change
Through Wisdom”) was recog-
nized in 2004.
The Guild of Public Relations
Practitioners launched in 2000,
with the motto “Influence In-
FROM PAGE ONE
tilapia, many are now strug-
gling to survive.
The metals, coal, cement,
aluminum and glass industries
alone could lay off three mil-
lion workers by shuttering a
third of the capacity, estimates
China International Capital
Corp., though the Beijing-based
investment bank says govern-
ment programs would cushion
the blow for many and it sees
signs authorities would pare
industry slowly to protect
growth rates.
North of the Yangtze River
in Hubei province, Suizhou is
the county seat for the sur-
rounding hill country of fertile
terraced fields. Pronounced
“sway-joe,” it is the purported
home to the mythological fa-
ther of Chinese agriculture
from 4,500 years ago known as
the Yan Emperor Shennong.
To industrialize, it took ad-
vantage of proximity to the
provincial capital, Wuhan. Low-
skill workshops modified truck
chassis from regional giant
Dongfeng Motor Corp. to make
cement mixers, garbage haul-
ers, school buses and the like.
When the world economy
cratered in 2008, localities
such as Suizhou got added at-
tention as Beijing greenlighted
stimulus.
Suizhou financed a new ur-
ban district, anchoring it with
office buildings and widened a
village road into a boulevard it
named “Welcome Guests.” The
city issued $150 million in
bonds and fancied up its river-
front by adding an arena with
twinkling white lights. It built
apartment towers near a sta-
tion on the national high-speed
rail network.
Suizhou’s gross domestic
product during the past eight
years expanded an average
four percentage points faster
than the nation as a whole, in-
cluding back-to-back years top-
ping 15% in 2010 and 2011.
That pace eased to 8.8% in
2015, when all of China ex-
panded 6.9%.
As the tide ebbs, excesses
are being exposed. The city
now has 110 large-scale spe-
cialized vehicle makers.
Zhou Fang entered the busi-
tegrity Trust.” A consultant
created a coat of arms for the
group featuring a herald’s horn
with blue background to repre-
sent “blue-sky thinking.”
The PR men and women
hoped to ape the success of The
Worshipful Company of Infor-
mation Technologists, say sev-
eral former masters, or guild
leaders. The Information Tech-
nologists now count Bill Gates
as a member. Masters there
wear robes embroidered with
Urbanization Push
China's growth depends on expanding the middle class in places like
Suizhou, and helping farmers become better-paid urban workers, who
have more disposable income and higher education levels.
Per capita disposable income
Rural Suizhou Urban Suizhou
Urban Shanghai
$8,000
6,000
4,000
2,000
0 1.4%
2014
Sources: Suizhou and Shanghai governments (income); World Bank, Development Research
Center of the State Council, the People’s Republic of China (education)
ness after college five years
ago to sell $60,000 water-
tanker trucks for local pro-
ducer Hubei Dali Special Auto-
mobile Manufacturing Co.
While demand remains stable
from government customers
around the country, Ms. Zhou
says she has 200 local compet-
itors and too little repeat busi-
ness. “It’s not like fashion,”
says the 27-year-old, where
customers come back every
year to buy new clothes.
At the cement truck maker
Aoma, Mr. Xu said it used to be
so busy that “from outside the
factory, you could hear the
roar.”
The problems became ap-
parent suddenly in mid-2015
when orders for the $60,000
mixers stopped arriving from
its biggest customer, Xuzhou
Construction Machinery Group
Co. Among the handful of vehi-
cles on Aoma’s vast lot outside
was a mixer decorated with the
yellow logo of Xuzhou. The
company didn’t respond to
questions.
Questions about the local
economy put to the Suizhou
government by The Wall Street
Journal are being considered, a
spokesman said.
gold to represent “conductiv-
ity.”
The first hiccup came when
the Worshipful Company of
Marketors complained about
the PR push on the grounds
that its livery company already
encompassed public relations.
After some lobbying, the Lon-
don authorities gave their
blessing for the PR guild to
start raising funds and holding
events.
Following a lavish party
* * THE WALL STREET JOURNAL.
Educational attainment, 2012
Farmers Young migrant workers
None
8.3%
0.3%
Primary
33.8%
5.5%
Middle school
47.0%
57.8%
High school
8.0%
14.7%
Technical secondary school
1.5%
9.1%
College and above
’15 12.6%
THE WALL STREET JOURNAL.
Sitting on a red chair wear-
ing pink slippers and an anti-
dust outfit, 28-year-old Xia Yue
is perched on the cutting edge
of Suizhou’s hope to generate
new opportunities. A quality
control inspector at Hubei TKD
Crystal Electronic Science and
Technology Co., Ms. Xia oper-
ates a machine that tests crys-
tal oscillators smaller than rice
grains that act as tiny time-
pieces in mobile phones, Wi-Fi
devices and cars.
Location incentives
TKD was founded in Shen-
zhen near Hong Kong, but its
owner moved the company to
his hometown a decade ago to
take advantage of incentives
offered by the government,
which hopes advanced manu-
facturing will contribute lon-
ger-term growth in the econ-
omy and better jobs.
But TKD’s expansion hinges
on a planned $36 million initial
public offering in Shanghai,
which has been awaiting ap-
proval since mid-2014 from se-
curities regulators. Following
recent stock market turmoil,
the China Securities Regulatory
Commission said it would ap-
where all the livery companies
were invited to drink glasses of
bubbly and listen to a presenta-
tion on public relations, mo-
mentum slowed.
While many in the industry
were eager to give to charity,
“the last thing they want to do
is go out for another glass of
wine,” says Philip Dewhurst, a
former master. (True to the
trade, some PR professionals
who have dropped membership
declined to go on the record.)
Recession hit and donations
dried up. Unlike the Worshipful
PLANET NEWS ARCHIVE/SSPL/GETTY IMAGES
Company of International Bank-
ers, the PR guild didn’t have
deep pockets to tap. Nor did it
own large tracts of land like
some other livery companies.
Proposals to modernize the
guild and tone down traditions
such as singing “God Save the
Queen” at dinner were shot
down. A founding member
died. Some members stopped
attending.
The 2008 edition of the
guild’s newsletter, “imPRes-
sions,” pointed to straitened
times. In a column titled “His
Master’s Voice,” the guild’s
leader urged members to pay
their annual membership fees,
known as “Quarterage.” Activi-
ties that year included a trip to
the Tower of London followed
by fish and chips at the Yeo-
man’s Club, the club of the
Tower’s Beefeater guards.
Still the flacks pressed on.
They forged partnerships with
the British armed forces, in-
JAMES T. AREDDY/THE WALL STREET JOURNAL
prove offerings at a “rational”
pace so as to not further dam-
age the market.
And the business itself is
cutthroat, depending on high
production with tiny margins.
TKD charges electronics com-
panies just pennies apiece for
the oscillators, and its custom-
ers are paying more slowly, ac-
cording to public filings.
At the mushroom market
outside town, Ms. Yang says
she doesn’t know much about
economic issues but senses ac-
tivity is slowing.
She and her husband started
growing shiitake about five
years ago. Countless neighbors
did the same. Hothouses grow-
ing mushrooms on shelves of
cut logs cover the hills around
Suizhou.
Shiitake is the Japanese
name for the edible fungus that
is called xiang-gu in Mandarin,
and China now provides 80% of
the global supply. Suizhou’s
commercial bureau says the
city is the country’s biggest ex-
porter of shiitake, accounting
for $610 million in business ac-
tivity. HSBC located its first
Chinese bank outlet outside a
major city in Suizhou, in part
to support local mushroom
farmers.
Among the shiitake buyers
circling the daily market at
daybreak was Sanyou (Sui-
zhou) Food Co.’s Qian Kejun.
He said he can always find cus-
tomers for good mushrooms in
China, Malaysia or the U.S. But
“excess supply” has pushed
prices lower, said Mr. Qian,
sniffing at Ms. Yang’s offerings
as not worth her asking price.
After watching farmers with
superior mushrooms get over
$10 per kilogram, Ms. Yang
was asking $6.40. Fretting that
humidity would cause damage
if she didn’t sell before this
month’s Lunar New Year holi-
day, she settled for around
$5.65 per kilogram, nearly
$2,000, to unload her giant
bags in separate deals with a
woman in polka dots and a
man in fatigues.
“I lost money today,” said
Ms. Yang.
—Rose Yu
contributed to this article.
cluding the Royal Air Force’s
Public Relations squadron
(motto: “Always the Truth”).
Gradually they built up charita-
ble funds and support. In 2013
the guild climbed a notch to a
midlevel status, “Company
without Livery.”
“Our continued growth is
good news for the profession
and good news for society,” the
Public Relations Practitioners
said in a news release.
Now Mr. Ingham, a 40-year-
old PR man, wants to build on
this energy. A new public-rela-
tions drive is under way. Mr.
Ingham’s pitch: “Doing business
as well as doing good.”
This year the Public Rela-
tions Practitioners will co-host
a financial public-relations
awards ceremony, and intimate
black-tie “Master’s Suppers” for
top-quality networking. The
group organized a quiz night.
Relations with the Marke-
tors are now very cordial, says
Mr. Ingham. “There is abso-
lutely no friction,” between the
groups, he says.
“PR is part of marketing,”
insists Andrew Marsden, the
current master of the Worship-
ful Company of Marketors. “But
I wouldn’t dream of saying any-
thing controversial.”
Mr. Ingham estimates livery
status is another three or four
years away. To accelerate that
process a survey was sent out
to members. The main ques-
tion: “What is it that we can do
to improve?”
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.
Electability on Steroids
Donald Trump
got past dis-
missing John
McCain’s
years being
tortured in the
Hanoi Hilton,
WONDER
and he may
LAND
get by saying
By Daniel
a two-term
Henninger
president who
remains popu-
lar with Republicans was a liar
whose malfeasance let 9/11
happen.
What Donald Trump may
not survive is the death of An-
tonin Scalia.
After Mr. Trump’s an-
nouncement for the presi-
dency last June, the Republi-
cans’ nomination process
turned into a gravitational
black hole, sucking into it me-
dia particles and any loose po-
litical sentiment.
The death of Supreme
Court Justice Scalia has dis-
rupted the GOP’s fantastic
journey. Republicans now face
the 18th-century warning of
Samuel Johnson: “Depend
upon it, sir, when a man
knows he is to be hanged in a
fortnight, it concentrates his
mind wonderfully.”
The prospect that Hillary
Clinton—or Bernie Sanders—
could name one, two or three
Supreme Court Justices is an
invitation to a hanging for
Republicans.
In last Saturday’s debate,
hours after Justice Scalia’s
death, Ted Cruz described the
stakes: “The two branches of
government hang in the bal-
ance—not just the president
but the Supreme Court.” Sen.
Cruz is right, almost.
For Republicans, the great
sobering up has begun, and it
Trump Didn’t Oppose the Iraq War
By Karl Rove
D
onald Trump went
loony-left during last
Saturday’s GOP debate
in South Carolina. In a heated
moment the reality TV celeb-
rity told the crowd that Presi-
dent George W. Bush had
“lied” about weapons of mass
destruction in Iraq.
This wasn’t the first time
that Mr. Trump went off the
deep end as a candidate. In
October he blamed President
Bush for the Sept. 11 attacks,
telling CNN: “They knew an at-
tack was coming. George Te-
net, the CIA director, knew in
advance there was going to be
an attack, and he said so to the
president.” He expanded this
accusation Saturday, saying
that Mr. Bush “had the chance”
to kill Osama bin Laden before
9/11 but “didn’t listen to the
advice of his CIA.”
Mr. Trump obviously has
not read George Tenet’s mem-
oir, “At the Center of the
Storm.” Though the CIA picked
up an increasing stream of
warnings about possible terror
attacks at home and abroad in
the months leading up to Sep-
tember 2001, this intelligence
did not point to when, where,
how and even whether the ter-
rorists would strike. It was
“frightening but without speci-
ficity,” Mr. Tenet wrote.
Intimating that Mr. Bush
Needed: A Three-Year Medical Degree
By Robert I. Grossman
And Steven B. Abramson
T
he structure of medical
school has not funda-
mentally changed since
1910, when the seminal Flexner
Report prescribed nationwide
standards for educating doc-
tors. But in the past 30 years,
the required training after
medical school has increased
substantially. Doctors going
into a subspecialty such as car-
diology or orthopedic surgery
now need as many as eight
years of postgraduate work, up
from five years in 1970.
These delays impede medi-
cine’s primary mission: to
provide doctors to serve the
population. Moreover, the
amount of debt that medical
students take on is pushing
them toward high-paying
specialties and away from
primary care, pediatrics and
geriatrics, where they are
most needed.
Eighty-six percent of medi-
cal-school graduates carry
debt, which averages $161,000,
according to a 2012 study by
starts with the post-Scalia
Supreme Court.
Until now, the Court and its
future membership has floated
in the background of the cam-
paign, what with all the time
needed to learn what the
meaning of “amnesty” is.
One cause of the anger
among conservatives, many
now Trump supporters, has
been the not-incorrect belief
that political elites have been
telling them what to do and
how to think.
Often left unremarked, be-
cause it has become back-
ground noise, is that those
commands have the force of
law.
Justice Scalia spent his ca-
reer on the bench fighting
that force of law, a force de-
rived from a postmodern legal
jurisprudence that identifies a
political result, outputs a tor-
rent of moralistic verbiage on
the subject, and then waves
the enforcement onto the pub-
lic. You want anger at govern-
ment imposition? Read Justice
Scalia’s dissents.
The Court stands divided at
4-4. Progressives can go to
bed knowing that over four
years, a Clinton or Sanders
Court would become 5-4 or
even 6-3 for them. In eight
years, bye-bye Supreme Court.
The upside for Republicans
is the Supreme Court doesn’t
animate turnout among the
new Democratic coalition. Pro-
gressive millennials know
more about safe spaces than
stare decisis.
Still, it takes a lot to be-
lieve that Donald Trump could
win more electoral-college
votes than Hillary Clinton or
Bernie Sanders and that his
Supreme Court appointments
knew about the coming attacks
but did nothing to stop them
makes Mr. Trump sound like a
9/11 truther. And the idea that
the Bush administration blew a
chance to kill al Qaeda’s leader
in its first nine months is a
fairy tale. There was no such
opportunity.
There’s no record of
his clear opposition
before March 2003,
despite his claims
Mr. Trump was body
slammed for these charges Sat-
urday, first by former Gov. Jeb
Bush (“While Donald Trump
was building a reality-TV show,
my brother was building a
security apparatus to keep us
safe”) and then by Florida Sen.
Marco Rubio (“I thank God all
the time it was George W. Bush
in the White House on 9/11 and
not Al Gore”).
The Donald, though, is cun-
ning. The day after the debate,
he claimed, “I’m not blaming
anybody,” but only after first
repeating his smear by saying,
“the CIA said there was a lot of
information that something
like that was going to happen.”
Mr. Trump also claimed Sat-
urday that he alone opposed
the Iraq war. “I’m the only one
the Association of American
Medical Colleges. If you dis-
miss the trouble of paying off
such a sum on a doctor’s sal-
ary, think again. A newly
minted M.D. needs three to
eight years of further profes-
sional training, during which
his salary will rarely exceed
$75,000.
A shortage of physicians is
a real threat. By 2030 the
population of Americans 65 or
older will surpass 70 million,
according to a 2008 report
from the Institute of Medi-
cine. Many of them will have
chronic conditions like hyper-
tension, diabetes or osteopo-
rosis. “Unless action is taken
immediately,” the report con-
tinues, “the health care work-
force will lack the capacity (in
both size and ability) to meet
the needs of older patients in
the future.”
Here’s one idea to help: let
medical students graduate in
three years instead of four.
About a dozen schools in the
U.S. and Canada now offer
three-year pathways to an
M.D., and a survey of more
OPINION
would have Justice Scalia’s
respect for the lives of his vot-
ers. Mr. Trump’s nominations
for anything sit as a mystery.
Before Justice Scalia’s
death, some might have said
the Trump option was a risk
worth running. The risk now
has become too high.
With the Court’s relevance
After Scalia’s death,
the 2016 election just
got more serious
for all GOP voters.
re-established for picking a
presidential nominee, the
moment has arrived to com-
plete the trifecta of primary
voting issues: What about
control of Congress?
Sen. Cruz’s remark that the
presidency and Supreme Court
are at risk was an understate-
ment. He didn’t mention hold-
ing control of the Senate.
Justice Scalia’s death forces
to the surface not only the
Court but five at-risk GOP
Senate seats: New Hamp-
shire’s Kelly Ayotte, Pennsyl-
vania’s Pat Toomey, Ohio’s
Rob Portman, Illinois’s Mark
Kirk and Wisconsin’s Ron
Johnson. Throw in Marco
Rubio’s open seat. Democrats
need to win four to end the
GOP majority.
Lose them in 2016, and Re-
publicans lose reform of
ObamaCare, Dodd-Frank, taxes,
the bureaucracy and, yes, the
border. And absent half those
reforms, probably get a de
facto global recession.
Presidential electability has
been mostly a buzzword. No
on this stage that said, ‘Do not
go into Iraq,’ ” he asserted. “I
said it loud and clear, ‘You’ll
destabilize the Middle East.’ ”
This, too, is a fabrication.
PolitiFact reviewed newspaper
archives and TV transcripts
and found that he did not pub-
licly oppose the war before it
began in March 2003. In Janu-
ary of that year he did discuss
Iraq on Fox News, saying that
President Bush “has either got
to do something or not do
something, perhaps, because
perhaps shouldn’t be doing it
yet and perhaps we should be
waiting for the United Nations,
you know.”
This is incoherent. Of course
the president was either going
to do something or not do
something. And the U.N. did
authorize military action by
finding Iraq in material breach
of the surrender agreement
that Saddam signed to end the
first Gulf War.
In the same interview, Mr.
Trump said that President
Bush was “doing a very good
job.” He said that “if you look
at the polls, a lot of people are
getting a little tired. I think the
Iraqi situation is a problem.”
But that is as far as Mr. Trump
went—and then he added, “I
think the economy is a much
bigger problem as far as the
president is concerned.”
Then on March 25, 2003, in
an interview after the Oscars,
than 100 deans, conducted
last year by one of our col-
leagues, suggests that 35% of
schools have considered de-
veloping accelerated pro-
grams.
Eliminating a year of
school saves students thou-
sands and allows them to earn
income earlier. Since medical
schools are largely funded by
research grants, revenue from
clinical care and philanthropy,
these accelerated programs
won’t significantly affect the
bottom line. Nor should they
raise worries about new doc-
tors’ competence. An M.D.
only permits a physician to
commence residency training,
the next level of supervised
learning.
The NYU School of Medi-
cine, where we work, intro-
duced a three-year degree for
select students in 2013. The
core curriculum is the same,
but students on the acceler-
ated path must know at the
outset which area of medi-
cine they wish to pursue,
since their academic year
begins six weeks early with
longer. The GOP primary is
now about electability on
steroids. The party needs a
candidate with the widest,
deepest appeal.
All those vulnerable sena-
tors are in purple states Ba-
rack Obama carried in 2012.
Could they run ahead of or
independently of their nomi-
nee? That will be hard this
year. Media saturation has
totally nationalized U.S. poli-
tics. State nuance has eroded.
These candidates will be
joined at the hip to the Repub-
lican nominee.
Ted Cruz’s path to the nom-
ination is: Win the support of
hard, even embittered conser-
vatives and religious voters,
especially in the South.. That
he has now overtaken Donald
Trump in the Wall Street
Journal/NBC poll suggests this
may be plausible. The mo-
ment has arrived to ask Mr.
Cruz exactly how he proposes
to pull across independents in
Ohio, Pennsylvania, Florida,
New Hampshire, Wisconsin or
Colorado—along with the GOP
Senate candidates there.
In Gallup’s polling of the
national electorate, Donald
Trump’s unfavorable rating is
a historically unprecedented
60%. To save those at-risk
seats, much less any presiden-
tial candidacy, Mr. T has to
bring down that number.
He has made no effort to do
so. He’s running in South Car-
olina on the Iraq war a decade
ago rather than the existential
Republican threat of 2016.
After Scalia, Republican voters
have to save the presidency,
the Supreme Court and the
Congress. Are we getting seri-
ous yet?
Write to henninger@wsj.com
he called the war “a mess” and
said: “If they keep fighting it
the way they did today, they’re
going to have a real problem.”
The key to understanding his
statement is the phrase “the
way they did today.” Mr. Trump
had clearly heard about that
day’s bloody, confused fighting
in the battle for Nasiriyah,
which ended a few days later
with a complete U.S. victory.
None of this was a “loud
and clear” warning “not to go
into Iraq.” None of this was a
“loud and strong” declaration
that “you’ll destabilize the
Middle East.” They were in-
stead the ramblings of a half-
informed real-estate developer
who now wants to sound like
Henry Kissinger.
The whole Trumpian
shtick—slandering a president,
embracing ridiculous conspir-
acy theories, pretending to be
a foreign-policy prophet—is
what we’ve come to expect. If
Republican voters hand such
an unstable individual their
party’s nomination, they will
do immeasurable harm to it.
Fortunately, there is still time
to stop him.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley: Why the
1896 Election Still Matters”
(Simon & Schuster, 2015).
an introduction in that depart-
ment. All three-year degree
candidates also are provision-
ally accepted into a residency
at the NYU Langone Medical
Center, so long as they main-
tain strong academic perfor-
mance.
This spring, we will gradu-
ate the first group of 15 stu-
dents, representing roughly
10% of the class of 2016. And
interest in the program has
grown. In 2014 we began al-
lowing students to opt in dur-
ing their first year, and about
20% of the class applied.
Medical education needs to
adapt to the 21st century.
Breaking from the old Flexner
model can keep aspiring
physicians free of debilitating
debt while getting more
doctors quickly into communi-
ties that need them.
Dr. Grossman is the dean
and CEO and Dr. Abramson is
the vice dean for education,
faculty and academic affairs
at New York University’s Lan-
gone Medical Center and the
NYU School of Medicine.
Thursday, February 18, 2016 | A11
BOOKSHELF | BY Howard Schneider
The Bridge
To Somewhere
The Road Taken
By Henry Petroski
(Bloomsbury, 322 pages, $28)
T
he subject of “The Road Taken: The History and Future
of America’s Infrastructure,” Henry Petroski’s 19th
book, is essentially the fight against entropy: infra-
structure and its inexorable decay. Mr. Petroski, an engineer
and a professor at Duke University, cherishes roads and
bridges, and his book is a loving look at everything—materi-
als, expertise, politics, money, culture—that goes into their
creation and maintenance. It is also a passionate appeal to
Americans to accept responsibility for keeping their infra-
structure safe and viable.
He begins at ground level, surveying the history of road
paving. Techniques for smoothing the passage of humans,
livestock and vehicles date at least to the Romans, whose fa-
mous roads were lined with laboriously hand-laid stones.
Later, bricks, wood blocks, and the system of tar-coated rock
and gravel named for the Scottish inventor John Loudon
McAdam were used. By the early 20th century, “cobble and
other stone pavements
were too rough for the
speed at which autos trav-
eled, and so asphalt”—a
mix of sand and stone
bound together with a natu-
rally occurring tarry sub-
stance—was widely adopted.
Today roughly 94% of Amer-
ica’s two million miles of
paved road are asphalt.
In 1919, 81 American Army
vehicles—motorcycles, trucks,
cars—drove cross-country
from Washington, D.C., to San
Francisco in an exercise in-
tended to “promote the Army’s Motor
Transport Corps.” One of the passengers was Lt. Col. Dwight
D. Eisenhower, and the trip made a vivid impression on him.
The journey was appalling because infrastructure was either
nonexistent or dreadful: “Roads, where they existed,” Mr.
Petroski recounts, “were often so rough that no significant
speed could be achieved. . . . If there was a bridge, it was of-
ten too light for military vehicles to use without breaking
it.” Eisenhower’s rueful observations on this journey and his
experiences during World War II, in which he saw “firsthand
the great advantages of the German Autobahn . . . would in-
form [his] infrastructure policy making when he became
president,” culminating in the creation of the nation’s inter-
state highway system.
The idea for a cross-country road had been broached as
far back as 1913 (by Carl G. Fisher, “a bicycle racer and
builder of a motor speedway” near Indianapolis), and in
1916 Congress passed the Federal Aid Road Act, which sup-
plied matching funds to states to improve their roads. In
1939 a federal report endorsed the construction of a high-
way system that would encompass the whole nation. (FDR,
Mr. Petroski notes, had a personal stake in the matter, be-
ing “an ardent automobile driver.”) But it wasn’t until the
Techniques for smoothing the passage of
humans and vehicles date to the Romans, whose
famous roads were lined with hand-laid stones.
Eisenhower administration that, after contentious debate,
the financial model for dividing costs between the states
and the federal government was worked out and the Fed-
eral-Aid Highway Act of 1956 was passed. The bill autho-
rized $25 billion to construct a “National System of Inter-
state and Defense Highways,” to be funded by an increased
federal gas tax, and established standards for such physical
features as “lane and median width.” It also set a comple-
tion date of 1972.
No matter how well-designed and well-crafted a piece of
infrastructure is, it will inevitably atrophy. “The Road
Taken” is profligate with examples of what can go wrong
and how trouble can be rectified. Are you fascinated, for in-
stance, by potholes or, more likely, bugged by them? “Under-
standing the genesis of potholes . . . requires a deep view of
the nature of pavement and its foundation”: When the tem-
perature slips below freezing, “the water beneath the road
surface solidifies into ice. Since ice takes up more space
than the water from which it forms, the volume that was oc-
cupied by the water is no longer sufficient to contain the ice,
which then presses against the bottom of the roadbed and
the asphalt above it.” The author goes on in this vein for an-
other page and a half.
It would be great fun to drive or stroll with Mr. Petroski
and pick his brain about the infrastructure one sees. He
seems to know everything possible on the subject and
adores it all. But this book, a labor of love, can sometimes
be laborious for the reader. “The Road Taken” is replete
with so much minutiae about everything connected to in-
frastructure that the general reader might become a bit
bemused at times. Do we need a comparison of the belt-
ways surrounding Washington, D.C., Boston and Baltimore
or the table titled “A Comparison of Road Maintenance
Procedures”?
Mr. Petroski assays state-of-the art subjects like smart
cars, smart roads, smart bridges and their interrelationship,
but I’m sorry that he didn’t afford more space to how pio-
neering technology might affect the future of infrastructure.
I also wish that he had appraised the entrepreneur Elon
Musk’s innovative concept of the “Hyperloop,” a magneti-
cally powered, really rapid—700 miles per hour—mass-tran-
sit system that he envisages connecting Los Angeles and San
Francisco. If it comes to pass, it will profoundly change Cali-
fornia’s car culture. I also wish that Mr. Petroski had dis-
cussed in greater depth how Cold War concerns and strate-
gizing served as catalysts for the nation’s new interstate
highways—the “defense” in the name “National System of
Interstate and Defense Highways.”
My complaints shouldn’t deter readers from “The Road
Taken.” My advice would be to read the book, in effect, by
its index: Find a topic that’s interesting or newsworthy and
peruse the author’s examination of it. Mr. Petroski is a lucid
writer and indeed, when talking about the public’s obligation
to maintain our infrastructure, a rather eloquent one. I will
let him have the last word by quoting him on the citizenry’s
duty: “Shortchanging our investment in the infrastructure is
shortchanging the well-being and optimism of future gener-
ations and the prospect for economic growth.”
Mr. Schneider reviews books for newspapers and
magazines.
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A12 | Thursday, February 18, 2016 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Political War on Cash Germany’s Problem Absorbing These Refugees

T
hese are strange monetary times, with banks, with the goal of prodding depositors to For this German living in the U.S., marginalized. Would these communi-
negative interest rates and central bank- remove their cash and spend it to increase eco- Ambassador Peter Wittig’s op-ed, ties still not be “a source of great fric-
“How Germany Will Cope With the tion” if their numbers were, say, 15%,
ers deemed to be masters of the uni- nomic demand. But that goal will be undermined Refugees Crisis” (Feb. 10), comes not the same percentage that Latinos are
verse. So maybe we shouldn’t if citizens hoard cash. And one moment too soon. Since World in America?
be surprised that politicians So long, Ben Franklin. hoarding cash is easier if you War II, Germany has mastered more I admire Mr. Wittig and Germany’s
and central bankers are now Politicians want to can take your deposits out in severe crises. Her bombed-out cities bravado, but coming up with tangible,
waging a war on cash. That’s large-denomination bills you had to absorb 13 million refugees realistic solutions and then imple-
right, policy makers in Europe coerce you to spend. can stick in a safe. It’s harder from her former eastern territories menting them will be Germany’s true
and the U.S. want to make it to keep cash if you can only and the Soviet zone of occupation; I sign of leadership.
harder for the hoi polloi to hold small bills. was one of these migrants. Then our JOSH KRISINGER
hold actual currency. So, presto, ban cash. This theme has been nation was reunified in 1990 at a cost Atlanta
Mario Draghi fired the latest salvo on Mon- pushed by the likes of Bank of England chief of €2-€3 trillion to rescue East Ger-
many from the dilapidation caused by Peter Wittig states “those who want
day when he said the European Central Bank economist Andrew Haldane and Harvard’s Ken-
a political system that the Democratic to stay in Germany must adhere to our
would like to ban €500 notes. A day later Har- neth Rogoff, who wrote in the Financial Times victor of the 2016 New Hampshire laws and respect our values.” Good
vard economist and Democratic Party favorite that eliminating paper currency would be “by primary favors. There are reasons luck with that! Germany has accepted a
Larry Summers declared that it’s time to kill the far the simplest” way to “get around” the zero why Angela Merkel even puts her huge population whose values are
$100 bill, which would mean goodbye to Ben interest-rate bound “that has handcuffed cen- chancellorship at risk by insisting, completely opposite of yours. Does
Franklin. Alexander Hamilton may soon—and tral banks since the financial crisis.” If the be- with respect to the current predica- Germany have some magical powers
shamefully—be replaced on the $10 bill, but at nighted peasants won’t spend on their own, ment, “Wir schaffen das” (We’ll make unknown to the rest of humanity that
least the 10-spots would exist for a while longer. well, make it that much harder for them to save it). It would be good if instead of dis- will totally revamp people’s deepest
Ol’ Ben would be banished from the currency money even in their own mattresses. paraging her, the free world prayed and most dearly held beliefs?
the way dead white males like him are banned All of which ignores the virtues of cash for that she is right. In 10 years Germans will look back
from the history books. law-abiding citizens. Cash allows legitimate UWE SIEMON-NETTO and see this as a turning point for
Laguna Woods, Calif. their country—not because they took
Limits on cash transactions have been transactions to be executed quickly, without ei-
in so many refugees, but that the refu-
spreading in Europe since the 2008 financial ther party paying fees to a bank or credit-card Ambassador Wittig asserts Ger- gees they accepted don’t share any-
panic, ostensibly to crack down on crime and processor. Cash also lets millions of low-income many has experience assimilating thing in common with them, and their
tax avoidance. Italy has made it illegal to pay people participate in the economy without large numbers of immigrants and future children won’t either (take a
cash for anything worth more than €1,000 maintaining a bank account, the costs of which points to the fact that 5% of Ger- look at France). How many examples
($1,116), while France cut its limit to €1,000 are mounting as post-2008 regulations drop the many’s population is Muslim (mostly of Muslim non-integration do Western
from €3,000 last year. British merchants ac- ax on fee-free retail banking. While there’s al- from Turkey) and “not a source of countries need before they face the re-
cepting more than €15,000 in cash per transac- ways a risk of being mugged on the way to the great friction.” That is only a half- ality that it doesn’t work?
tion must first register with the tax authorities. store, digital transactions are subject to hack- truth as Germany’s Turkish and Bal- CARLA JELDER
Fines for violators can run into the thousands ing and computer theft. kans immigrants arguably remain Edmonds, Wash.
of euros. Deutsche Bank CEO John Cryan pre- Cash is also the currency of gray markets—
dicted last month that cash won’t survive an- amounting to 20% or more of gross domestic
other decade. product in some European countries—that gov- Muslims Not the Main Target of Hate Crimes
The enemies of cash claim that only crooks ernments would love to tax. But the reason gray You give a rave review in “Obama at America was exaggerated by Mr.
and cranks need large-denomination bills. They markets exist is because high taxes and regula- the Mosque” (Review & Outlook, Feb. Obama at a time when he has done lit-
want large transactions to be made electroni- tory costs drive otherwise honest businesses off 5) for the president’s speech that in- tle about the slaughter of Christians in
cally so government can follow them. Yet these the books. Politicians may want to think twice voked the best traditions of American the Middle East.
are some of the same European politicians who about cracking down on the cash economy in religious freedom and tolerance. The GREG BROWN
blew a gasket when they learned that U.S. coun- a way that might destroy businesses and add president exceeded expectations by not McLean, Va.
terterrorist officials were monitoring money millions to the jobless rolls. The Italian econ- using his speech at the Islamic Society
through the Swift global system. Criminals will omy might shut down without cash. of Baltimore to repeat past apologies I suggest that Marco Rubio, like
for Western behavior or analogize Is- many of us, can hardly stomach re-
find a way, large bills or not. By all means people should be able to go
lamic State to the Christian Crusades. peated, eloquent pleas for religious tol-
The real reason the war on cash is gearing cashless if they like. But it’s hard to avoid the Instead, he sought to allay religious erance by a president who exaggerates
up now is political: Politicians and central bank- conclusion that the politicians want to bar cash fear and mistrust. the scale and effect of American hostil-
ers fear that holders of currency could under- as one more infringement on economic liberty. The FBI’s most recent report on hate ity to Muslims, dismisses our fears of
mine their brave new monetary world of nega- They may go after the big bills now, but does crimes reported that anti-Muslim hate terrorism and, more important, has
tive interest rates. Japan and Europe are anyone think they’d stop there? Why wouldn’t crimes have indeed been rising, with throughout his tenure taken the reli-
already deep into negative territory, and U.S. they eventually ban all cash transactions much 154 reported in 2014 (in a nation of gious freedom of American Christians
Federal Reserve Chair Janet Yellen said last as they banned gold and silver as mediums of 320 million people, including close to so lightly. Knowing full well he’d be
week the U.S. should be prepared for the possi- exchange? three million Muslims). There also pounced on for supposed insensitivity,
bility. Translation: That’s where the Fed is going Beware politicians trying to limit the ways were 1,621 anti-black hate crimes in Mr. Rubio voiced displeasure. I applaud
in the next recession. you can conduct private economic business. It 2014 and 609 anti-Jewish crimes. Even his courage to criticize.
if all hate-crime incidences are under- ELIZABETH STARR
Negative rates are a tax on deposits with never turns out well.
reported, there clearly is no epidemic Arlington, Va.
of violence committed by non-Muslims

Africa’s Terror Crescent against Muslim-Americans. Whether

rational or not, tens of millions of
Remember when President Obama
appeared at Georgetown University in

F
Americans have to suppress fears ev- 2012 and had Christian religious sym-
or all the attention attracted by the bat- U.N. peacekeepers and wounded 30. The previ- eryday that they could be the victims bols covered up? Addressing his
tle against Islamic State in the Middle ous day, three Malian soldiers were killed in an of terrorists committing heinous acts mosque audience, he stood before a
East, Islamism is also wreaking havoc in ambush near Timbuktu. Ansar al-Dine, an al in the name of Islam. The terrorists huge window etched with 99 repeti-
Africa. Jihadist groups control Qaeda-linked outfit that oper- may be perverting a religion of peace, tions of the word Allah. Interesting dis-
territory stretching from the A spate of attacks ates in Mali’s northern desert, but that is little solace to actual or po- play of sensibilities, no?
Horn of Africa to the Mediter- took responsibility for the at- tential victims. An outbreak of anti- EUGENIA HEIM
ranean coast and south to Ni-
shows jihad’s long tack on the U.N. compound. Al
Muslim sentiment and violence in Wall Township, N.J.
geria, and that crescent has reach on the Continent. Qaeda in the Islamic Maghreb
been ablaze. took credit for the Timbuktu
Al Shabaab on Saturday ambush.
took responsibility for a bomb that ripped a Further south on Friday and Saturday, the
Negotiations With Duplicitous Proliferators
yard-long hole in a Daallo Airlines plane while Nigerian terror group Boko Haram slaughtered Prof. Martin Hellman writes (Let-
it was flying from Mogadishu to Djibouti on Feb. 30 people in attacks on a pair of villages in the ters, Feb. 11) that “the Agreed Frame-
EUROPEAN PRESSPHOTO AGENCY

2. The would-be bomber blew himself out of the country’s northeast. Most of the victims were work worked reasonably well until
cabin, while in a miracle the other passengers beheaded. Boko Haram, which has pledged alle- President George W. Bush cut off
and the crew survived. giance to Islamic State, has lost territory since heavy fuel oil shipments.” This sub-
stantially misstates the situation cre-
Al Shabaab, which is al Qaeda’s Somalian fran- Nigeria elected President Muhammadu Buhari
ated by North Korea, the decisions the
chise, called the attack “retribution for the crimes on an antiterror platform. Yet the group con- North Korean violations forced and
committed by the coalition of Western crusaders.” tinues to mount gruesome attacks and menace the consequent actions taken by the
Al Shabaab said it intended to bomb a Turkish Air- Nigeria’s neighbors. Bush administration, in concert with
lines flight but switched targets after bad weather The U.S., U.N., African Union, European pow- the other involved nations, in the North Korea’s nuclear-armed Kim Jong Un
forced the Turkish carrier to cancel. The Daallo ers and local governments have pledged to dis- 2002-08 period. Mr. Hellman papers
plane was carrying many of the passengers from lodge al Qaeda and Islamic State from Africa. So over the inherent shortcomings of the do, or totally miss the fact that the nu-
the cancelled Turkish flight. Ankara, a NATO far they’ve failed. The Kidal attack is troubling original deal. clear weapons development program
member, is building a military base in Somalia and given the efforts France has made to stabilize As the senior Department of De- remained on track as that nation’s un-
contributes to antiterror efforts in Africa. Mali since 2013. African Islamism threatens some fense policy maker involved in the Six wavering core national security prior-
Also on Saturday, jihadists assaulted a United of the Continent’s most entrepreneurial and fast- Party talks with North Korea from ity. The lesson for the Iran deal is that
2003-07, I can objectively assert that the North Korean deal was unverifiable
Nations base in Kidal, in northern Mali, using est-growing regions. And as Syria has taught the
the original Framework deal was inher- and was struck with a duplicitous and
mortars and a suicide car bomb. They killed six world, jihad spreads unless it is defeated. ently flawed. That said, it could have determined proliferator.
worked and evolved into a more per- We live with the results today as

Hillary and Black Opportunity manent solution, but such a positive

outcome would have required the
North Korea expands its nuclear weap-
ons capabilities. Those charged with

H
North Koreans to honor the letter and “managing” Iran’s compliance with the
illary Clinton hopes the African-Ameri- need to face the painful reality that African spirit of the 1994 deal. They did not, July 14, 2015, agreement need to learn
can vote is her political firewall against Americans are nearly three times as likely as had no intention to do so and set about the hard lessons of the unsuccessful
Bernie Sanders, especially in next Sat- whites to be denied a mortgage.” So even though violating key provisions from day one. North Korean experience and apply
urday’s South Carolina pri- she knows that higher taxes North Korea expected all of the other those lessons with vigor, determination
mary. So she’s going all out to Her race talk is empty won’t do much to improve eco- parties involved to either turn a blind
eye to Pyongyang’s serial violations, as
and objectivity.
RICHARD P. LAWLESS
show she’s a champion of black as long as she opposes nomic opportunity for blacks, several governments were inclined to Great Falls, Va.
economic opportunity—except she’ll raise them anyway.
for endorsing the one policy education choice. Mrs. Clinton had a better
that would make the most dif- case when she railed against
ference. what she called the “school-to-
Pope’s Position on Immigration Is Nuanced
Mrs. Clinton’s pitch this week included court- prison pipeline.” Because black children don’t Pope Francis’ planned act of soli- use his influence to help eradicate the
ing Al Sharpton, America’s foremost racial po- get an education that would give them real op- darity with migrants on the Mexico- cesspool of corruption by Mexican
larizer, and giving a speech in Harlem on Amer- tions in life, she said, many end up in prison. Texas border, on Feb. 17, will enunci- government officials. If it wasn’t for
ica’s “systemic racism.” She went all-in playing There’s a lot to this, but then Mrs. Clinton re- ate Catholic teaching that “people their sleazy, greedy sin, we wouldn’t
to racial grievance, suggesting her Democratic fuses to address the main reason that so many have a right to immigrate and that be having this conversation, and we
laws should be crafted to facilitate certainly wouldn’t be having a tsu-
rival is a Johnny-come-lately to racial justice and black children lack a quality education: failing
this in justice and mercy” (“Pope to nami of illegal immigrants crossing
characterizing the Republican Party as folks public schools, with no chance to escape to a Stand With Migrants on Border,” into the U.S. It is time for all Ameri-
aiming to resurrect Jim Crow. better one. World News, Feb. 10). However, this can Catholics, like myself, to force
Citing a litany of racial disparities in every- Not too many years ago Mrs. Clinton under- isn’t unqualified. It is nuanced by two other countries and their leaders to
thing from arrests to deaths from asthma, Mrs. stood this enough to support charter schools, if other principles found in the Com- care for their own citizenry. We sim-
Clinton said white America finds it “tempting” not private vouchers. But in this election year pendium of the Social Doctrine of the ply cannot accommodate every per-
to believe America has left bigotry behind, be- she has become a charter critic, attacking them Church: First, states have a right to son who wants to come here.
cause we can then ignore the problem. She must for not taking all comers even if they rescue tens regulate their borders to protect their MIKE GONZALES
have missed the bipartisan negotiations in Con- of thousands each year. In return she has re- citizens and infrastructure; second, Houston
gress on criminal-justice reform, including ceived the unusually early endorsements of both all just laws must be obeyed. Keeping
changes to sentencing for nonviolent offenses. the American Federation of Teachers and the this in mind, the pope’s words should Letters intended for publication should
offer counsel to those on both sides be addressed to: The Editor, 1211 Avenue
But she was clear about how she would address National Education Association.
of the Rio Grande. of the Americas, New York, NY 10036,
the disparities she outlined: more federal spend- Those endorsements may help her beat Mr. THE REV. MICHAEL P. ORSI or emailed to wsj.ltrs@wsj.com. Please
ing paid for by higher taxes: Sanders, but they also create an opening for Re- Naples, Fla. include your city and state. All letters
“Now even if we succeed on raising taxes on publicans in the fall: Her talk about opportunity are subject to editing, and unpublished
every millionaire and billionaire in America, and is empty as long as she dooms poor minority I am distressed immeasurably with letters can be neither acknowledged nor
returned.
believe me, I do intend to succeed at that, we still children to failing schools. the pope’s action. He instead should
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THE WALL STREET JOURNAL.
Republicans Are Campaigning to Lose
By Fred Barnes
T
he CNN exit poll for the
New Hampshire primary
asked Republican voters
if they “feel betrayed by
Republican politicians?”
Forty-seven percent said yes. And
that was the view of grass-roots
Republicans in a state where moder-
ates usually rule. Imagine what the
percentage of Republicans who feel
betrayed might be in more conser-
vative states. We’ll find out Satur-
day in South Carolina.
The split between an aggrieved
GOP base—the betrayed—and the
party’s leaders dominates the Re-
publican presidential race. It has
turned televised debates into
brawls. And it threatens to prevent
Republicans from winning the presi-
dency that otherwise might be
theirs.
The candidate brawls and
party disunity are setting
up Clinton or Sanders
for a win in November.
If the turbulence continues—and
there’s no end in sight—the Republi-
can nominee will lead a badly
divided and weakened party in the
general election in November. The
Democratic candidate won’t be a
powerhouse. That’s a certainty. But
either Hillary Clinton or Bernie
Sanders will have the benefit of a
united Democratic Party, a signifi-
cant advantage in a close election.
The New Hampshire exit poll, by
the way, asked Democrats if they
feel betrayed by their politicians.
Only 15% said yes, a mere fringe of
discontent.
Anyone who watched the two
debates last week could see the dif-
ference. The Republican candidates—
four of the six anyway—got caught
Putin Hasn’t Given Up His Designs on Ukraine
By David Petraeus
And John Herbst
I
n a clear response to continuing
Russian aggression in Ukraine,
NATO ministers last week ap-
proved the deployment of troops on
the alliance’s eastern flank for the
first time since the end of the Cold
War. Under NATO’s new “enhanced”
forward presence, maritime forces
will be increased in the Baltic Sea
and land forces sent to reinforce de-
fenses in Poland, Bulgaria, Romania,
Estonia, Latvia and Lithuania.
While these changes are prudent,
none directly addresses the situation
on the ground today in Ukraine,
which remains a non-NATO member.
In recent weeks, Russian-backed sep-
aratists have sharply increased their
attacks in Donetsk and Luhansk—a
stark reminder that President Vladi-
mir Putin hasn’t given up his designs
on eastern Ukraine.
Mr. Putin invaded Russia’s western
neighbor two years ago because he
saw its emergence as a stable, demo-
cratic country integrated with Europe
as a fundamental threat. While he has
scaled back overt Russian aggression,
this appears to be a temporary tactic
designed to win sanctions relief, even
By Mark G. Yudof
And Ken Waltzer
A
nti-Israel sentiment mixed
with age-old anti-Semitism
has reached a fever pitch at
Vassar College. It is time that faculty
and administrators take a stand
against this toxic brew on behalf of
academic values.
The campus of this private lib-
eral-arts college in Poughkeepsie,
N.Y., has experienced more than its
share of anti-Israel activity. In the
spring of 2014, the boycott of a
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up in personal attacks. They were
testy and offended. Mrs. Clinton and
Mr. Sanders, while hardly chummy,
spent considerable time echoing each
other. “There is no question Secre-
tary Clinton and I are friends,” Mr.
Sanders said before noting a partial
disagreement over Libya. No Republi-
can uttered such words.
Some viewers may have been
stirred by the angry clashes between
Ted Cruz and Marco Rubio, and by
Donald Trump’s wild charges against
President George W. Bush. I winced.
The candidates appeared to be any-
thing but presidential. Mrs. Clinton
and Mr. Sanders, for all their harp-
ing on left-wing themes, came closer
to the presidential standard, at least
for a night.
The split between party leaders
and a substantial number of party
voters emerged after Republicans
won the House in the 2010 midterm
ISTOCK/GETTY IMAGES
election, and swelled when they
added the Senate in 2014. Their
legislative gains were minimal. The
Republican base, egged on by conser-
vative talk radio, accused congres-
sional leaders of knuckling under to
President Obama. Thus the notion of
betrayal.
The discord and anger were prac-
tically an invitation to Mr. Trump to
enter the race. A unified Republican
Party would have provided him
neither the political space in which
to run nor issues to exploit. And Mr.
Trump would most likely have de-
cided not to run, as he had in earlier
presidential years.
The moment he announced, Mr.
Trump made opposition to immigra-
tion his calling card. It was a shrewd
choice. More than any other issue,
immigration alienates the conserva-
tive base from the Republican estab-
lishment in Washington. The real-es-
tate tycoon turned reality TV star
went on to create a constituency
that includes working-class Republi-
cans, renegade Democrats, and mod-
erates.
Mr. Trump’s crude style has had a
as he ratchets up Russia’s military
intervention in Syria.
In addition to NATO’s recent an-
nouncement, the U.S. and its NATO
allies would be wise to bolster Ukrai-
nian deterrence against further
Kremlin adventurism, and to make
clear that the price of such adventur-
ism for Russia will be high if deter-
rence fails. The first step is to
provide more effective defensive
weapons to Ukrainian forces.
The U.S. and its European partners
have done an impressive job imposing
economic costs on Moscow for its
actions in Ukraine. But they haven’t
done enough militarily to support
Ukraine, which in 1994 gave up the nu-
clear weapons it inherited from the
Soviet Union in exchange for trans-At-
lantic assurances about the safeguard-
ing of its territorial integrity. These
assurances have proven meaningless.
The equipment Ukraine could put
to best use in deterring attacks on its
territory includes more effective anti-
tank and radar systems. Yet some
Western policy makers have been
reluctant to provide substantial mili-
tary support to Ukraine because Rus-
sia has “escalation dominance”—i.e.,
whatever we give Ukraine, the Krem-
lin can always do more.
Majoring in Anti-Semitism at Vassar
course in the International Studies
Program—because it involved a trip
to Israel—included heckling students
and picketing the class. During the
fall of 2015, attempts were made to
boycott Sabra hummus because the
maker of this popular food is partly
owned by an Israeli food company.
The most recent incident was a
talk on Feb. 3 by Jasbir Puar, a
Rutgers associate professor of
women’s and gender studies. The
address, “Inhumanist Biopolitics:
How Palestine Matters,” was spon-
sored by eight Vassar departments
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OPINION
huge impact. He insults rivals,
tosses out slurs, trashes Republican
icons, and interrupts constantly
during debates whenever he is men-
tioned, alluded to, or just feels like
it. When he’s talking, he waves off
anyone who dares to break in.
Absent Mr. Trump, would other
candidates have acted like students
at his school of bad behavior? I
don’t think so. I’ve watched debates
in presidential races going back to
1980 and never seen anything like
Mr. Trump’s antics. Chris Christie’s
near-destruction of Marco Rubio in
the Feb. 2 debate was made possible
by Mr. Trump’s example. So was the
row in last week’s debate when Mr.
Rubio said Mr. Cruz had lied repeat-
edly and Mr. Cruz said the accusa-
tion was “knowingly false.” This
occurred as they both talked at the
same time, barroom style.
Technically, this analysis has
merit. No amount of Western mili-
tary equipment would help Ukraine
defeat a determined Russia in battle.
But such logic ignores the fact that
the right equipment could signifi-
cantly raise the costs of such a battle
for Russia—and that Russia’s toler-
ance for military and economic losses
is not infinite.
NATO is wise to bolster
its eastern flank, but
Kiev needs more defensive
armaments right now.
Mr. Putin has gone to great lengths
to cover up the extent of Russian
involvement in Ukraine. He has made
it illegal to publish figures on casual-
ties, knowing that such losses are a
potential liability. He also knows that
the more overt Russia’s intervention
in Ukraine becomes, the harder it will
be to secure sanctions relief from
Europe, which the Russian economy
badly needs, especially as falling oil
and natural-gas prices reduce state
revenues from exports.
and programs, including Jewish
Studies and American Studies.
Ms. Puar began by exhorting the
students to support a boycott of
Israel as part of “armed” resistance.
As reported by several in attendance
at the speech—the professor intro-
ducing her requested that it not be
recorded—Ms. Puar passed on vicious
lies that Israel had “mined for organs
for scientific research” from dead
Palestinians—updating the medieval
blood libel against Jews—and ac-
cused Israelis of attempting to give
Palestinians the “bare minimum for
survival” as part of a medical
“experiment.”
When asked, she agreed with a
questioner that Israeli treatment of
Palestinians amounted to genocide
but objected to the term itself,
which she said was too “tethered to
the Holocaust.”
Ms. Puar’s speech was co-spon-
sored by the Jewish Studies Pro-
gram, yet faculty members of the
program remained silent in the audi-
ence during the event. This is a tes-
tament to the spell that anti-Israel
dogma, no matter its veracity, has
spread over the campus.
Wild charges against Israel have
often been aired on U.S. campuses
over the past several years, and
their moral perversity pointed out.
But Ms. Puar’s calumnies reached a
new low. She spoke of Jews deliber-
ately starving Palestinians, “stunt-
ing” and “maiming” a population.
The false accusation that a people,
some of whose members were exper-
Thursday, February 18, 2016 | A13
The more
bruising the
fights, the more
difficult it will
be to produce
Republican unity.
The New Hamp-
shire exit poll
was not encour-
aging. Republican
voters were
asked if they
would be “satis-
fied if Cruz wins
the nomination?”
The result: 38%
said yes, 59% no.
Mr. Rubio did
slightly better:
41% yes, 57% no.
Mr. Trump beat
both of them:
51% yes, 46% no.
Democrats
were asked a
similar question.
Satisfied if Mrs.
Clinton is the
nominee? Sixty
percent said yes,
37% no. If Mr.
Sanders wins? Seventy-nine percent
said they’d be satisfied, 20% said
they wouldn’t.
Given the relative harmony of
the Democratic debates, these num-
bers weren’t surprising. Last
week’s debate was filled with com-
ments like “I completely agree with
Senator Sanders” and “nothing that
Secretary Clinton said do I disagree
with.” Mrs. Clinton said she was
“in vigorous agreement” with Mr.
Sanders’s zeal for taxing the rich.
“Let me concur,” Mr. Sanders said,
with Mrs. Clinton’s stand on
women’s rights.
Mr. Sanders didn’t bring up Mrs.
Clinton’s email scandal, the Clinton
Foundation, or her fees for speeches
to Wall Street firms. He must have
figured Democrats didn’t want to
hear about her personal troubles,
and raising them might backfire.
Ukraine’s military has acquitted it-
self well against Russian-supported
separatists—largely fighting them to
a standstill. It has also built strong
defensive lines from the port city of
Mariupol running north. Thousands of
heavily armored troops would be
required to punch through these
Ukrainian positions. And with the
right infusion of defensive weaponry,
the West can make such an operation
prohibitively costly for the Kremlin.
In particular, Ukraine desperately
needs shoulder-launched antitank sys-
tems to offset Moscow’s large advan-
tage in armor, along with more coun-
ter-battery radars for identifying the
locations of separatist artillery and
rocket systems, thus helping to pro-
tect Ukrainian troops from long-range
fire. The Obama administration has
sent two such radar systems, but
more are needed and their range
should extend into the Russian border
area, because Moscow has fired mis-
siles from its own territory at Ukrai-
nian forces. Finally, Ukraine would
benefit from advanced drones and
secure communications and control
systems. None of these could be seen
as offensive in nature.
The U.S. Congress understands the
stakes in Ukraine. The 2016 National
imented on at Auschwitz, are today
experimenting on others is a dis-
grace.
Yet characterizing Israel and
Zionism in ways that anti-Semites
formerly characterized Jews has
become a stock in trade among anti-
Israeli activists on college campuses.
And it exposes the real motivation of
those who profess to criticize only
the Israeli government’s policies
with regard to the West Bank, not
Jews themselves.
A number of events over
the past two years have
transformed a prestigious
institution into a parody
ripe for ridicule.
Now there is a resolution before
the Vassar student union, in part
seeking a boycott of Ben & Jerry’s,
on the grounds that the company—
founded by two Jews—sells ice-
cream “transported on Jewish-only
roads to be sold in Jewish-only set-
tlements.” This is part of a broader
divest-from-Israel resolution to be
voted on this spring, which also
includes other U.S. companies.
These events are transforming a
prestigious institution into a parody
ripe for ridicule—a place embar-
rassing to prominent alumni and
worrisome for prospective Jewish
students.
There was a sharp exchange or
two but nothing that might jeopar-
dize party unity or an upbeat na-
tional convention. This happens
when candidates are operating off
the same playbook—in their case,
the progressive agenda.
Having capitalized on the GOP
split, Mr. Trump shows no interest
in bringing the party together. Unity
is not his strong suit. His put-downs
of every Republican except Ronald
Reagan continue nonstop. Like Mr.
Cruz, he’s antiestablishment. But he
treats Mr. Cruz no better than the
other candidates. Two days ago, he
said Mr. Cruz is “the biggest liar”
he’s ever met and “unstable.”
The Donald is not a team player,
yet he has the best shot at the
moment of winning the nomination.
What happens then? The Republi-
can rift will not be healed and dis-
unity will reign. It’s highly likely
that a sizable chunk of the Republi-
can establishment will decline to
back Mr. Trump in a repeat of 1964
when liberal and moderate Republi-
cans refused to support Barry Gold-
water.
The gap separating Republicans
back then was greater than today’s
split. But by the time the party
recovered, the Great Society agenda
of President Lyndon Johnson had
been enacted. We still feel its
effects a half-century later with
more Americans dependent on gov-
ernment than ever.
In 2016 the prospect of a Republi-
can triumph is fading. Republicans
would rather quarrel angrily than
win. Should this allow Mrs. Clinton
to slip into the White House, we
have a pretty good idea what will
happen. President Obama’s legacy of
ever-bigger government will be
preserved, Mrs. Clinton will add to
it, and America will suffer the con-
sequences.
Mr. Barnes, executive editor of
the Weekly Standard, is a Fox News
commentator.
Defense Authorization Act, signed
into law by President Obama, autho-
rizes $300 million in military assis-
tance for Kiev, including $50 million
for lethal defensive armaments. It is
now time for the U.S. to deliver the
equipment needed to help Ukraine
ensure its security and, in so doing,
safeguard U.S. and trans-Atlantic in-
terests that are under assault there.
Ultimately, Russia’s bellicose ac-
tions in Ukraine are about more than
Ukraine. By bolstering Kiev, we have
the opportunity to reaffirm our com-
mitment to the most elemental rules
and principles of post-Cold War
Europe, particularly that the sover-
eignty and territorial integrity of
states shall not be breached and con-
flicts shall be resolved through nego-
tiation not force of arms. By contrast,
failing to respond adequately would
very likely be an invitation to further
aggression by Russia—in eastern
Ukraine, and beyond.
Mr. Petraeus, a retired U.S. Army
general and former director of the
CIA, is chairman of the KKR Global
Institute. Mr. Herbst, a former U.S.
ambassador to Ukraine and Uzbeki-
stan, is director of the Atlantic Coun-
cil’s Dinu Patriciu Eurasia Center.
In January 2014, Vassar President
Catharine Bond Hill forthrightly
rejected the boycotts of Israel that
were being proposed by a variety of
academic associations. This time her
response—posting a letter in the
alumni magazine defending the
college’s reputation and stating that
some may have found Ms. Puar’s talk
“objectionable”—is too tepid.
She did add that Vassar will
organize a series of lectures with
different viewpoints on Israel. But
we think her letter should be ad-
dressed to students and faculty—
and that hatred of Israel and Jews
should not implicitly be character-
ized as merely another perspective
to be debated.
We respectfully call upon her to
again to speak out—and be joined as
well by other professors hitherto
silent in the face of such venom.
Faculty and administrators, includ-
ing the Jewish Studies department,
together need to confront this wave
of anti-Semitism with the primary
tools at their disposal: free speech
and rigorous academic inquiry. This
is what a university is for, after all.
Mr. Yudof, former president of the
University of California, is chairman
of the Academic Engagement Net-
work, where Mr. Waltzer, professor
of history emeritus at Michigan
State University, is the executive
director. AEN opposes the Boycott,
Divestment and Sanctions movement
against Israel and promotes freedom
of speech on college campuses.
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A14 | Thursday, February 18, 2016 THE WALL STREET JOURNAL.
©T&CO. 2016

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URBAN GARDNER A16 | CITY NEWS A16, A17 | ARTS & ENTERTAINMENT A20 | SPORTS A21, A22
Push to Save
Atlantic City
CITY NEWS | A17
WSJ.com/NY
Hospitals Take Aim at Infections
New prevention efforts
come as figures show
dangers patients face
after being admitted
BY CORINNE RAMEY
To reduce infections pa-
tients acquire inside its hospi-
tals, NewYork-Presbyterian
Hospital conducted surveys of
housekeeping staff and embed-
ded researchers with them as
they cleaned.
Researchers discovered bar-
riers to better cleaning often
stemmed not from disregard
for the patient, but from re-
spect.
“Some of our housekeepers
are reluctant to get right up in
AGATON STROM FOR THE WALL STREET JOURNAL
Sgt. Janette Cruz is part of an NYPD unit focused on violent hot spots. ‘I treat them the way I want to be treated,’ she said of suspects.
NYPD ‘Diva’ Gets Guns Off Streets
BY REBECCA DAVIS O’BRIEN
Sgt. Janette Cruz’s supervi-
sor at the New York Police De-
partment calls her the “Diva of
Firearms,” an admiring moniker
reflecting what police officials
say is her impressive record
grabbing guns off city streets.
Sgt. Cruz, 47 years old, is
the only woman on a new 22-
person NYPD unit focused on
violent hot spots around the
city. She carries her compact,
muscular torso with confi-
dence, blond hair pulled back,
arms wreathed in tattoos,
makeup carefully in place.
“She’s all about business,”
said Deputy Inspector Roberto
Rios, who oversees the NYPD’s
field intelligence officer pro-
gram, a citywide network of
106 investigators.
36°
TODAY’S
Weather
Real Feel
9 a.m. 29°
HIGH
5 p.m. 25°
Record High
68° (1981)
SUNNY Sunrise/Sunset
6:46 a.m./5:34 p.m.
Friday’s High
40°
N.Y. Sports Lineup
7:30 p.m.
Thursday
Rangers @
Maple Leafs
7 p.m.
Thursday
Capitals @
Islanders
For N.Y. sports coverage, see A21, A22
* * * *
a patient’s space,” said David
Calfee, the hospital’s deputy
medical director for infection
prevention and control. “They
worry they’ll get in the way, or
the smell would be offensive to
the patient.”
The project is one way New
York hospitals have sought to
fight hospital-acquired infec-
tions. While infections associ-
ated with hospital stays in the
state have declined, according
to a report by the state’s De-
partment of Health, they have
remained higher than rates na-
tionwide, data from the U.S.
Centers for Disease Control
and Prevention show.
The state estimates 2,000
people died in 2014 of the
tracked infections. Of these,
877 were from infections that
“You would never think—a
woman recovering firearms.
You think of a big, burly guy
coming in,” Inspector Rios
said. Instead, “you’ve got a 5-
foot-5 woman at the door, one
of the best crime fighters.”
In 2015, 998 guns were
taken off city streets through
field-intelligence operations,
up from 817 in 2014 and a 10-
year high. Intelligence gath-
ered directly by Sgt. Cruz led
to the seizure of at least 28 of
those guns, and police officials
said she has consistently been
one of the top “gun getters”
for the past several years.
What makes Sgt. Cruz so ef-
fective, officials said, is a mix
of street smarts and a soft
touch. She is known for her
“debriefs”—interviews with re-
cently arrested suspects, who
Yankees Know Their
Formula Is Getting Old
BY JARED DIAMOND
While the Yankees sat at
home in October, their little
brothers roared into the World
Series on the shoulders of four
dynamic starting pitchers
all under the age of 28.
But the Mets couldn’t
overcome the Kansas
City Royals, the em-
bodiment of a small-
market franchise, who re-
lied on speed and defense
to win their first champion-
ship in three decades.
The Mets and Royals, argu-
ably the best teams in base-
ball, entered 2015 with a com-
bined payroll of about $215
million. The Yankees spent
nearly $220 million on players
by themselves, then failed to
Closer to Home
Displaced residents will soon own
THE WALL STREET JOURNAL.
occurred more than three days
into a hospital stay. Infections
discovered after this period are
assumed to have originated
within the hospital.
“This greatly exceeds the
number of deaths due to other
well-known infections such as
AIDS and influenza,” says the
state report, which was re-
leased in January. The report
shows decreases in infection
rates from 2007 to 2014.
The CDC tracks infections
using a statistic it calls the
standardized-infection ratio,
which takes into account the
different types of care patients
receive and the different proce-
dures they undergo. Those sta-
tistics were higher in New York
state than the national average.
The state said its intensive
sometimes give up information
about crimes, the locations of
guns, and details about gang
activity in their neighborhoods.
“I treat them the way I
want to be treated,” said Sgt.
Cruz, citing a “motherly in-
stinct” to talk things out with
suspects. She has a 20-year-
old daughter, an art student.
“As a woman, I think I do
have a different approach than
the guys do,” said Sgt. Cruz,
who was an amateur body-
builder before joining the
force. “Men feel less threat-
ened. They feel a little more
OK to talk.”
Even amid an overall de-
crease in crime, New York City
has experienced an uptick in
shootings and gun-related
crime in certain areas, making
Sgt. Cruz’s work critical, offi-
advance beyond the American
League wild-card game.
With this dichotomy as the
backdrop, the Yankees open
their spring-training camp
Thursday in a precarious posi-
tion: trying to win with a core
built from an increasingly
outdated model—loaded
with aging, injury-prone
superstars.
It’s not as though the
Yankees can’t see the writ-
ing on the wall: They didn’t
sign a single available major-
league free agent this winter,
standing alone as the only or-
ganization in baseball to punt
on this year’s class. Not even
the Yankees can operate with
limitless funds, and finally
they appear tapped out, at
Please turn to the back page
auditing could explain the
higher numbers.
The CDC agrees that possi-
bility exists. “However, we do
not know whether this addi-
tional auditing can fully explain
the number of infections being
reported,” said CDC spokes-
woman Melissa Brower.
Even if the state does have
more thorough reporting,
Linda Greene, president-elect
of the Association for Profes-
sionals in Infection Control and
Epidemiology, a trade group,
said, “We have to identify op-
portunities for improvement,
and there is still a great deal of
work to be done.”
In the hospitals tracked by
the state, the most common in-
fection is one caused by the
Please see CARE page A16
cials said.
Before joining the citywide
unit, Sgt. Cruz worked in the
Bronx’s 40th Precinct, a partic-
ularly violent part of the city.
“She’s probably better than
most at figuring out what’s go-
ing on in the neighborhoods,”
said NYPD Deputy Chief Ste-
phen Hughes, calling Sgt. Cruz
the “best person for debrief-
ing people” in the NYPD, and
one of the department’s best
intelligence gatherers.
She speaks with “some of
the most hardened criminals
in New York City,” Chief
Hughes said, “and they open
up to her like they wouldn’t to
a normal detective.”
NYPD’s new Citywide Anti-
Crime Team, composed of
plainclothes officers, was
Please see GUNS page A16
Metropolitan Opera Mixes Traditional and Adventurous Titles
FAN FAVORITE: As part of the Metropolitan Opera’s 2016-2017 season, Vittorio Grigolo, seen above,
will star in Bartlett Sher’s staging of ‘Roméo et Juliette’ with Diana Damrau. A20
SPACES | A18
Thursday, February 18, 2016 | A15
David Calfee, NewYork-Presbyterian Hospital’s deputy medical
director for infection prevention and control, in a patient room.
One More Time,
Spitzer Applies
Damage Control
BY MIKE VILENSKY
AND PERVAIZ SHALLWANI
For the dwindling list of
friends and supporters of for-
mer New York Gov. Eliot
Spitzer, last weekend brought
a flurry of familiar phone calls
and email messages.
Mr. Spitzer, once a star of
the Democratic Party, was un-
der investigation for an en-
counter with a 25-year-old
woman in a hotel room, the
headlines splashed across New
York tabloids.
The news that a former gov-
ernor felled by a sex scandal is
once more drawing the interest
of law-enforcement officials all
but puts a nail in the coffin of
any political future, friends
and former advisers said.
The woman, who police be-
lieve is a former escort, initially
said Mr. Spitzer, 56, assaulted
her at the Plaza Hotel, but later
recanted and flew to Russia,
law-enforcement officials said.
The New York Police Depart-
ment’s investigation is in limbo
because the woman hasn’t been
cooperative, the officials said.
Manhattan District Attorney
Cyrus Vance Jr. has asked to
recuse himself from the inves-
tigation because of his ties to
Mr. Spitzer, a spokeswoman
for Mr. Vance said Wednesday.
An attorney for Mr. Spitzer
said the former governor and
the woman knew each other
“for a period of time.” The at-
torney said the two “had a
brief and amicable conversa-
tion” last weekend, then the
woman had a breakdown.
“Mr. Spitzer acted appropri-
ately at all times during this
incident,” the attorney said.
A spokeswoman for Mr.
Spitzer said Wednesday that
he was once one of the coun-
try’s most popular politicians,
but that “he has no intention
KEVIN HAGEN FOR THE WALL STREET JOURNAL
of ever re-entering public life,
and looks forward to continu-
ing to build his family’s real-
estate business.”
As he once more enters
damage-control mode—reach-
ing out on Monday to a crisis
public-relations professional
for help and seeking the advice
of friends—Mr. Spitzer is run-
ning out of sympathy from
past supporters.
“The Scripture tells us if
someone offends you seven
times a day, you shall forgive
them seven times,” said the
Rev. Daryl G. Bloodsaw, the
leader of a Brooklyn church
who campaigned for Mr.
Spitzer when he ran for New
York City comptroller in 2013.
“But there comes a point when
personal responsibility comes
into it, and it’s up to the indi-
vidual to change.”
‘There comes a
point when personal
responsibility comes
into it.’
Asked if he would endorse
Mr. Spitzer again, Mr. Blood-
saw said perhaps if Mr. Spitzer
“was up against someone who
had committed murder.”
Some compared Mr. Spitzer
to Anthony Weiner, the former
Democratic congressman who
resigned amid a sexting scan-
dal, then ran for New York City
mayor, but lost amid a second
sexting scandal.
“We both tried to come
back and failed,” Mr. Weiner
said Wednesday. “I don’t have
any insight or advice for him.”
Mr. Spitzer served two terms
as New York state attorney gen-
eral and was governor for 14
months until 2008, when he re-
Please see SPITZER page A16
BRESCIA/AMISANO
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Thursday, February 18, 2016
Hospital Acquisitions
Hospitals in the state of New York continue to grapple
with infections contracted by patients in their care.
New York State hospital mortality estimates, 2014
Attributable
Infection deaths
C. difficile 6%
MRSA bloodstream
infection 20%
CRE bloodstream
infection 38%
VRE bloodstream
infection 28%
MDR-Acinetobacter
22%
bloodstream infection
New York state infection rates compared with national rates, 2013
The comparison is made using the standardized infection ratio
(SIR), which takes into account the different types of care
patients receive and the different procedures they undergo.
Surgical site infections,
colon surgery
Surgical site infections,
abdominal hysterectomy
Catheter-associated
urinary tract infections
MRSA bloodstream
infection 11%
C. difficile 9%
Central line-associated
bloodstream infections 5%
CARE
Continued from page A15
bacterium Clostridium difficile,
or C. diff. The infection, most
common among people taking
antibiotics, results in diarrhea
and intestinal problems. There
were 8,890 C. diff infections
that began in the hospitals in
2014. The infection rate de-
clined 32% from 2010 to 2014,
the health department said.
In 178 hospitals statewide,
the health department tracked
16 types of infection. It issued
hospitals 79 so-called red flags,
or warnings for infection rates
that significantly exceeded the
state average. Hospitals that
receive flags must submit plans
to the state on how they will
reduce their infection rates.
New York City hospitals receiv-
ing red flags for two consecu-
tive years include Mount Sinai
Hospital, for colon surgical-site
infections and C. diff, and Me-
morial Sloan Kettering Cancer
Center for C. diff.
A Mount Sinai Hospital
spokeswoman called the C. diff
and colon-surgery results dis-
appointing and said the hospi-
tal had already established a
multidisciplinary task force to
reduce all infections.
Mini Kamboj, director of
Memorial Sloan Kettering’s in-
fection-control program, said
its numbers are high because
some cancer patients, such as
those who receive transplants,
are at a much increased risk of
infection. The state’s statistical
adjustment doesn’t sufficiently
take this into account, she said.
Area hospitals noted to have
rates significantly lower than
the state average for two con-
secutive years include the Hos-
ANNUAL
WATCH & JEWELRY
SALE
Extended through February 20th
Deaths from
hospital onset cases
534
172
90
70
11
47% higher in the state
45%
21%
Sources: Centers for Disease Control
and Prevention (SIRs); New York
state Department of Health
(mortality estimates)
THE WALL STREET JOURNAL.
pital for Special Surgery, for
hip surgical-site infections;
Maimonides Medical Center,
for C. diff and central line-as-
sociated bloodstream infec-
tions in the ICU; and Mount Si-
nai St. Luke’s for C. diff.
The state views the report
itself as an infection-preven-
tion measure.
Hospitals initially had
“healthy skepticism” that the
reporting program would un-
fairly compare hospitals or tar-
nish reputations, said Paul Gra-
man, professor of infectious
diseases at University of Roch-
ester Medical Center and a
member of a technical-advisory
board that works with the
health department. “But on
most of these measures, we
have measurable improve-
ment,” he said, attributing it to
the state-surveillance program
and the work of the hospitals
themselves.
Area hospitals say reducing
infections is a priority, and
they continually search for bet-
ter approaches.
NYU Langone Medical Cen-
ter looked at hip-surgery infec-
tion rates and found 2% of
first-time hip-surgery patients
contributed 30% of infections,
said Michael Phillips, hospital
epidemiologist and director of
infection prevention and con-
trol. These patients were older
and more medically complex.
The hospital now repeatedly
applies a certain antiseptic for
this population, Dr. Phillips
said.
At NewYork-Presbyterian,
the researchers are now work-
ing with cleaning staff to come
up with specific scripts to use
when getting close to patients.
“We haven’t run across peo-
ple who don’t care,” Dr. Calfee
said.
CITY NEWS
A Gallery Visit Is All Over the Maps
The Audubon engravings
are what tempted me to visit
the Arader Galleries as I was
walking up Madison Avenue a
few weeks ago. But it was
their maps that got me to
stay.
Nobody could outdo John
James Audubon when it came
to painting a wild turkey, a
pandemonium of Carolina
parrots or a trio of ivory-
billed woodpeckers.
But let’s
be honest:
Audubon’s
images are
so well
known that
the eye be-
URBAN
comes blasé,
GARDNER
as with the
RALPH
Mona Lisa,
GARDNER JR.
or the art-
work on your
apartment
walls that is so familiar as to
be invisible.
Yet there’s something
about a map. And the immod-
est sign over the first one I
spotted—“The Most Impor-
tant Map in American His-
tory”—drew my attention im-
mediately. Even before I was
told of the $375,000 price
tag.
The artifact, over 6 feet
wide and more than 4 feet
high, was John Mitchell’s 1755
map of the British and French
dominions in North America,
and one of the few copies in
private hands.
“It was used to make the
boundary lines between
America and Great Britain af-
ter the War of Independence,”
explained Taylor Rash,
Arader’s auction director.
Morgan Beckwith, the gal-
lery’s director, added: “When
you say ‘The Mitchell Map,’
everyone knows what you’re
talking about.”
I didn’t. Then again, until
I’d entered the gallery, I
hadn’t really taken the time
to consider maps, other than
road maps that led me to my
destination in the antedilu-
vian days before Google
Maps. And certainly not as
art.
But what did I do when I
approached the map? And
what might you have done,
too? I tried to orient myself,
to find my location. To com-
pare the map before me to
the map in my head, the one
where I stand at the center of
the universe.
I didn’t care so much that
a scholarly paper about the
map, supplied by Mr. Rash,
quotes Benjamin Franklin on
April 8, 1790, a mere nine
GUNS
Continued from page A15
formed in late September 2015
to provide an immediate re-
sponse to local spikes of gun
violence and gang activity.
Since then, the unit has
worked in all five boroughs,
focusing on specific precincts
for weeks at a time and mak-
ing 58 total arrests and recov-
ering 23 guns as of Feb. 10.
Post-arrest debriefs are con-
sidered vital to law-enforce-
ment, but they are also contro-
versial. They are typically
conducted after an arrest but
before arraignment and with-
out a lawyer present.
“Was the arrestee notified
of his Miranda rights? Is it a
coercive and tricky interroga-
tion? Are they threatening
him, physically or emotion-
ally?” said Donna Lieberman,
executive director of the New
York Civil Liberties Union.
Ms. Lieberman said New
York should mandate the vid-
eotaping of such interrogations
to prevent abuses and protect
both police and suspects.
Sgt. Cruz said she never
asks about the crime for which
SPITZER
Continued from page A15
signed after revelations that he
had patronized prostitutes.
“I actually liked him and
thought he had the potential
to be a great governor,” said
Mel Miller, the former Demo-
cratic speaker of the New York
state Assembly, who donated
to Mr. Spitzer’s campaigns.
“Sometimes you’re wrong.”
After a stint as a television
host, Mr. Spitzer attempted a
political comeback in the race
for New York City comptroller.
The campaign was followed by
A 1719 map of the Western Hemisphere, above, by Henri Abraham
Châtelain, one of the rare maps at the Arader Galleries, seen at top.
days before his death. He’s
writing to Secretary of State
Thomas Jefferson: “I now can
assure you that I am perfectly
clear in the Remembrance
that the Map we used in trac-
ing the Boundary was
brought to the Treaty by the
Commissioners from England,
and that it was the same that
was published by Mitchell
above 20 Years before.”
I found what I was looking
for. The island of Manhattan,
identified on the map as “N.
York.”
“What makes a map
great?” asked Mr. Rash,
whose criteria hopefully
aren’t as myopic as mine. “Is
it the first map to show
something? The first map to
name Texas?”
He was referring to a 1718
map that includes the first
printed notation of Texas
(The Mission De Los Tejas)
and the first cartographic ap-
‘I think I have a different approach than the guys do,’ said Sgt.
Janette Cruz, citing a ‘motherly instinct’ in talking to suspects.
the suspect has been arrested,
only for broader information
about criminal activity. She
said she makes no promises of
special treatment and ends the
conversation as soon as a sus-
pect asks for a lawyer.
While most suspects don’t
want to talk, others are eager
to share. “You would be sur-
prised,” Sgt. Cruz said.
Some people have informa-
tion “and never knew what to
do with it.” She added: “Most
people are tired of crime. They
really do want to help.”
more tabloid headlines as Mr.
Spitzer’s marriage ended in di-
vorce and he dated a woman
who had served as his cam-
paign spokeswoman.
Since losing that race, Mr.
Spitzer has taken a bigger role
in his family’s real-estate busi-
ness, Spitzer Enterprises. He
has been hands-on, friends said,
overseeing a $700 million de-
velopment in the Williamsburg
section of Brooklyn. He seemed
happy, they said, but still har-
bored political ambitions.
After his 2013 loss, associ-
ates said he showed flashes of
anger and disappointment.
When he recently ran into
strategist George Arzt, who
* *** THE WALL STREET JOURNAL.
TOP TO BOTTOM: JOHN TAGGART FOR THE WALL STREET; ARADER GALLERIES
ing an unbroken body of wa-
ter.
Mr. Rash explained that it
takes a certain amount of in-
tellectual curiosity to appreci-
ate a great map, whereas
pretty much anybody can re-
late to a flock of colorful
birds. “Ninety-nine percent of
the people are going to say
‘Yes, that’s beautiful,’ ” he ex-
plained as we admired a
sheet of Audubon’s parrots.
College views are also
popular, as is Southeast Asia
at the moment. “You have
business people who travel
there,” he said.
I also wondered about the
market for maps among
weekend sailors. Though I’m
pearance of New Orleans. not one myself, I recall the
One of my favorites was pleasure I got from a nautical
an elaborately engraved 1719 place mat of the British West
map of the Western Hemi- Indies, where I’ve spent vaca-
sphere by Frenchman Henri tions, identifying its channels
Abraham Châtelain. It de- and familiar beaches.
picted California as an is- Mr. Rash said that maps of
land. coastal Long Island are popu-
Mr. Rash hypothesizes lar, directing me toward one
that explorers traveled up the of Long Island Sound from
Sea of Cortez, better known 1855. East Hampton, pre the
today as the Gulf of Califor- first Gilded Age, is depicted as
nia, a short distance, turned a small settlement with two
churches and a few houses.
Familiar art can One can only imagine the
excitement maps have caused
make the eye blasé. in the 17th or 18th century—a
But there’s something moonshot and a Springsteen
concert rolled into one—when
about a map. they offered the first ac-
counts of parts previously un-
known. A feast not only for
back and then sailed up the the eye but also the imagina-
West Coast of the future tion.
United States until they Even in the Internet age,
reached Puget Sound. They maps still are.
assumed the Puget Sound and
the Sea of Cortez met, form- ralph.gardner@wsj.com
the Bronx, she takes part in
the banter and mischief, inside
jokes about photos taped to
the wall beside a row of blink-
ing radios.
Throughout her career, she
AGATON STROM FOR THE WALL STREET JOURNAL
said, “I’ve always been the only
woman.”
Sgt. Cruz’s bubbly de-
meanor has a way of coming
out even in her descriptions of
the firearms she has helped re-
cover. Mostly, she finds 9mm
handguns and revolvers, al-
though she recently helped
find a rocket launcher in
Brooklyn.
“The prettiest gun I ever
found was a Desert Eagle,” a
Often, people “just want to
.50-caliber handgun, she said,
adding, with a smile, “It shoots
like a cannon.”
vent,” she said, “even if they
don’t give me information.”
She has longtime sources, We Want to Hear
but there are also people Sgt. From You
Cruz speaks with regularly be- Have something to say about
cause they get arrested repeat- an article in Greater New
edly. “Again?” she said she York? Email us, along with
asks them, with a stern but af- your contact information, at
fectionate look. “They say, ‘Oh, gnyltrs@wsj.com. Your letter
miss, I don’t know. I keep get- could be published in our
ting arrested.’ ” weekly Feedback column on
Sgt. Cruz reserves that Friday. Letters will be edited
same look for the men in her for brevity and clarity. Please
unit, who she said are like include your city and state.
brothers. In the unit’s office in
once worked for Mr. Spitzer
but later supported an oppo-
nent, he told Mr. Arzt: “I ought
to kick your ass.” The spokes-
sometimes spotted lunching at
Michael’s, the New York City
power-broker hangout. In busi-
ness, he is likely to survive the
woman for Mr. Spitzer said the latest incident, analysts said.
comment was in jest. “Prime real estate is prime
Hank Sheinkopf, a consul- real estate,” said Nicole Gelinas,
tant who worked on Mr. a fellow at the Manhattan Insti-
Spitzer’s campaign for attor- tute, a think tank. “People have
ney general, said that in poli- to live and work somewhere.”
tics, headlines are enough to Mr. Spitzer isn't as closely
inflict damage: “The sense that associated with his real-estate
something might have oc- projects as a brand-driven de-
curred is sufficient to exclude veloper like Donald Trump is,
anyone from public service.” analysts said. But he has pro-
Mr. Spitzer has maintained moted his Williamsburg project
some influence in Manhattan’s in the news media, giving inter-
business community. Through views and being photographed.
a family trust, he donates to A marketer for the develop-
charitable organizations. He is ment declined to comment.
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.
New Measure
To Take Over
Atlantic City
BY KATE KING
New Jersey lawmakers in-
troduced legislation Wednes-
day that would pull Atlantic
City from the brink of bank-
ruptcy but strip local officials
of their authority, setting the
stage for a fierce debate over
the city’s future.
The legislation introduced
in the state Senate would give
the state control for five years
over all government functions,
including the ability to sell At-
lantic City’s assets, alter or
terminate union contracts and
sell bonds.
‘It’s not a
partnership, it’s a
dictatorship,’ said
the City Council
president about the
Senate legislation.
The legislation also prevents
city officials from seeking
bankruptcy protection, a move
they have publicly threatened
in recent months, entrusting
instead that power to a six-
member legislative committee.
State officials had previ-
ously described the measure as
a takeover, while Atlantic City
Mayor Don Guardian called it a
partnership. On Wednesday,
Senate President Steve
Sweeney, a Democrat from
southern New Jersey, de-
scribed it as an “intervention.”
“The intervention plan will
enable the state and the city to
work together to accomplish
what Atlantic City can’t do on
its own,” said Mr. Sweeney, a
lead sponsor of the bill, in a
statement. “The city’s fiscal
Insanity Defense an Option in Fund Manager’s Killing
Thomas Gilbert Jr.
Greater
New York
Watch
NEW YORK CITY
Officials: Don’t Cut
Anti-Terror Funding
Several of New York City’s
top officials are joining U.S. Sen.
Charles Schumer in criticizing a
plan that would cut federal
counterterrorism funding.
Mayor Bill de Blasio, Police
Commissioner William Bratton,
Fire Commissioner Daniel Nigro
and others denounced the White
House plan on Wednesday.
The proposal would cut fund-
ing to the Urban Area Security
Initiative from $600 million to
$330 million. It would trim the
funding for New York City from
$180 million to $90 million. The
money helps offset local munici-
palities’ security expenditures.
The White House had said
the plan still contributes “robust
funding” to combat terror.
—Associated Press
NEW JERSEY
Serial Killing Suspect NEW YORK CITY
Linked to 1965 Case Correction Officers
A suspected serial killer has
been linked to the death of a
high-school student whose bat-
tered body was found alongside
a highway 50 years ago.
State police and Monmouth
County prosecutors announced
* * * *
crisis is severe and immediate.”
Atlantic City officials re-
acted with anger to the legisla-
tion. “It’s not a partnership, it’s
a dictatorship,” City Council
President Marty Small, a Dem-
ocrat, said at a council meeting
Wednesday night.
A spokesman for Atlantic
City’s mayor didn’t respond to
a request for comment
Wednesday. The mayor has ac-
knowledged the city’s need for
state assistance but said he
would oppose a complete state
takeover because it would dis-
enfranchise residents who
elected him and the City Coun-
cil.
Preventing bankruptcy is
critical to protecting the credit
ratings for New Jersey and its
other cities, said Sen. Paul
Sarlo, a Democrat from north-
ern New Jersey who co-spon-
sored the bill. Atlantic City of-
ficials have floated bankruptcy
as a potential solution to the
city’s crushing debt, which is
projected to total nearly $400
million over the next five
years.
Mr. Sarlo said lawmakers
are tired of subsidizing Atlan-
tic City and wanted to ensure
the city couldn’t file for bank-
ruptcy.
“There’s so much Atlantic
City fatigue in the Legislature
that we felt we had to give the
Legislature a say here in such a
critical decision that may be
made by Atlantic City,” he said,
referring to bankruptcy.
Last month, Gov. Chris
Christie announced he would
support a five-year takeover of
Atlantic City’s finances, but a
spokesman for the governor
declined to comment Wednes-
day on the new legislation.
Assembly Speaker Vincent
Prieto, a Democrat, whose co-
BY THOMAS MACMILLAN
Thomas Gilbert Jr., who is
SUFFOLK COUNTY DISTRICT ATTORNEY’S OFFICE/REUTERS
accused of killing his hedge-
fund manager father, may still
have the option of presenting
an insanity defense, but only
if his lawyer turns over more
information to the prosecutor.
Manhattan Supreme Court
Justice Melissa Jackson an-
nounced that ruling from the
bench Wednesday during a
pretrial hearing in the case.
Mr. Gilbert, 31 years old, is ac-
cused of shooting his father,
Thomas Gilbert Sr., in the fa-
ther’s Manhattan apartment in
ANDREW BURTON/GETTY IMAGES
Members of the NYPD’s Strategic Response Group outside police headquarters Wednesday after a
news conference by officials denouncing plans to cut funding for New York counterterror efforts.
their findings Wednesday.
They said a new analysis of
evidence links Robert Zarinsky to
the 1965 death of 18-year-old
Mary Agnes Klinsky. An autopsy
found the Raritan High School se-
nior had been sexually assaulted
and died from skull fractures.
Mr. Zarinsky was serving life
for another teenage girl’s killing
when he died in prison in 2008.
—Associated Press
Face Trial in Beating
A trial has been scheduled for
10 New York correction officers
who prosecutors say assaulted
an inmate for staring down a
correction department chief.
CITY NEWS
New Jersey Senate President Steve Sweeney and Majority Leader Loretta Weinberg on Tuesday. Above, Atlantic City as seen last week.
operation is necessary to send
a bill to the governor’s desk,
said through a spokeswoman
that he remains concerned
about “any efforts that would
unilaterally alter collective bar-
gaining.”
Assemblyman Chris Brown,
a Republican, said he wants to
hear how the state plans to
January 2015. He has pleaded
not guilty.
Just before his death, the
elder Mr. Gilbert had reduced
his son’s weekly allowance
from $600 to $400, according
to law-enforcement officials.
In December, Justice Jack-
son ruled Mr. Gilbert fit to
stand trial for the killing. She
weighed three psychiatric
evaluations, two of which
found that Mr. Gilbert wasn’t
able to understand trial pro-
ceedings or assist in his own
defense.
If the defense now wishes
to argue that Mr. Gilbert is in-
The group appeared Wednes-
day in Bronx Supreme Court af-
ter being charged in a 53-count
indictment that includes at-
tempted gang assault. A trial is
expected to start next week.
Prosecutors say a group of
guards beat inmate Jahmal
Lightfoot, on June 11, 2012, after
Mr. Lightfoot stared down the
jail’s assistant chief of security.
Authorities say the chief di-
rected his officers to attack Mr.
Lightfoot, who suffered two bro-
ken eye sockets and other inju-
ries. They are also accused of
falsifying reports saying Mr.
Lightfoot had a weapon.
A judge issued a gag order
Wednesday barring the lawyers
in the case from commenting.
—Associated Press
“right-size” the city’s budget,
which has been subject to ap-
proval by a state monitor since
2010. Atlantic City’s tax base
has contracted 64% since 2010,
but its budget stands at nearly
$250 million for a city of about
40,000 people.
“They have this legislation
that says they’re going to take
nocent by reasons of insanity,
the judge said, Mr. Gilbert’s
lawyer must present such a
theory in advance, along with
information about what wit-
nesses and evidence he would
have to support it.
Mr. Gilbert’s lawyer, Alex
Spiro, who hasn’t said
whether he would pursue such
a defense, told Justice Jackson
that he already has turned
over all the information re-
quired under law.
“I don’t have anything fur-
ther to turn over,” Mr. Spiro
said. His client remains men-
tally unfit to stand trial and
LONG ISLAND
‘God Squad’ Priest
Dies at Age 69
A Roman Catholic priest who
gained fame as half of an inter-
faith “God Squad” duo on televi-
sion and in a syndicated column
has died. He was 69 years old.
Msgr. Thomas J. Hartman
died late Tuesday at a nursing
home in Uniondale. He had suf-
fered from Parkinson’s disease.
Msgr. Hartman and Rabbi
Marc Gellman teamed up as
“The God Squad” on TV and ra-
dio and in print for 25 years.
They started the program in
1987 on Cablevision and a de-
cade later moved it to Telecare,
the diocesan television channel.
—Associated Press
Thursday, February 18, 2016 | A17
WAYNE PARRY/ASSOCIATED PRESS
streamline government down
there,” he said.
Mr. Sarlo said the proposed
legislation is “less rigid” than
what state lawmakers had orig-
inally envisioned. The proposed
bill, for example, gives the city
one year to increase revenue
from its water utility before
the state can sell it.
A companion piece of legis-
lation, also introduced
Wednesday, outlined a nine-
year payment plan in lieu of
property taxes for the city’s ca-
MEL EVANS/ASSOCIATED PRESS
sinos. The arrangement would
stabilize revenue for a city that
has been slammed by property-
tax appeals and is on track to
run out of cash by April 1 or
earlier.
The bill doesn’t address the
city’s ongoing dispute with
Borgata Hotel Casino & Spa,
over the city. OK, what are you which successfully appealed its
going to do differently?” Mr. property-tax assessments dat-
Brown said. “I’m still waiting ing back to 2009 and is now
to see the plan.” owed $150 million, plus inter-
Mr. Sarlo said the state est. With Atlantic City unable
would use its new powers to to pay, a judge ruled earlier
shrink the city’s government. this month that Borgata could
“The goal here is to sell off withhold its $7.2 million Febru-
some of their assets, pay down ary tax payment as a way of re-
some of their debt and to couping some of the debt.
won’t meet with any psycholo- he won’t have a psychiatric
gists, he said. “That’s the cart defense,” said prosecutor
that’s driving this horse.” Craig Ortner. He said he didn’t
The judge disagreed, say- have enough information to
ing, “This disclosure is woe- guide any expert witness
fully insufficient.” whose evaluation of Mr. Gil-
Mr. Gilbert, who is being bert he might seek.
held at Manhattan Detention “You have my ruling,” said
Complex, didn’t appear in Justice Jackson. She reiter-
court Wednesday. Mr. Spiro ated that Mr. Spiro would
said that he had refused to have to produce more infor-
come into the courtroom and mation or risk losing the
had asked to speak with some- chance to pursue a psychiatric
one from the Cablevision cable defense.
company, a request that Mr. The judge set another hear-
Spiro said is representative of ing date for April 12, at which
his client’s mental state. point, she said, she hopes to
“If he won’t cooperate, then select a trial date.
TOMORROW,
WE OPEN OUR
DOORS ON
THE ISLAND.
And we’re bringing our A game.
N E I M A N M A RC U S .CO M / RO OS E V E LT F I E L D
A18 | Thursday, February 18, 2016
A Long Journey
To Ownership
Nears Its Goal
Residents displaced by Columbia get homes
After waiting decades for
a shot at home ownership,
Hilda Muentes, 80 years old,
a retired sample maker in
the garment industry,
bounded Tuesday through a
new apartment in Hamilton
Heights that she soon will
buy for $250.
She pulled out her cell-
phone and took a picture of
the shiny, sin-
SPACES gle-handle fau-
JOSH cet on the tub
BARBANEL in her new
bathroom.
Then she
turned to the kitchen and
photographed a window fac-
ing Broadway. “Look, a win-
dow in the kitchen,” she
said.
The 12-story building, at
Broadway and West 148th
Street, was built by Colum-
bia University. It fulfills a
promise to build replacement
affordable housing for ten-
ants whose old building is to
be razed to make way for the

university’s new Manhattan-
ville campus rising along
Broadway above West 125th
Street.
Ms. Muentes and her
friend Luisa Henriquez were
part of a community of 20
neighbors who lived together
in a century-old, six-story
walk-up on West 132nd, just
west of Broadway.
The city foreclosed on the
building in 1978 because of
unpaid taxes. Since then, it
has promised the tenants
several times that they
would be able to purchase
their apartments for $250
each as part of a low-income
co-op, if they showed they
could manage it themselves,
said Ms. Henriquez, a retired
assistant preschool teacher.
Then, in 2003, Columbia
began discussing plans for a
new campus. In the end, Co-
lumbia agreed to put up the
new building with “equal or
better housing” for displaced
tenants on a site it pur-
LIM
SPACES THURSDAY
Clockwise from above left: Hilda Muentes in her West 132nd Street building, being razed to make way for Columbia University’s new
campus; Ms. Muentes in her new apartment; Ms. Muentes and Luisa Henriquez on their new building’s roof deck; the building’s exterior.
chased in 2008. Residents
are to move in this spring.
The building will provide
42 affordable apartments,
with rooftop patios for ten-
ants with views from the
George Washington Bridge to
Midtown skyscrapers. Some
laundry rooms and meeting
rooms have Hudson River
views.
Columbia will sell 20
apartments to the tenants of
West 132nd, who in turn will
set up their own co-op.
Seven more units will go to
former tenants of a second
building on Broadway also
being displaced by Columbia.
E D TIME OF
IT
FE
70%
R
The rest will be filled by the
city with a housing lottery, a
city spokeswoman said.
The tenants at West
132nd Street named their
new co-op the Exodus Hous-
ing Development Fund Corp.,
reflecting their long journey
toward home ownership. The
building also will have retail
space to be retained by Co-
lumbia, and a new home for
the Meeting with God Pente-
costal Church displaced from
West 130th Street by the Co-
lumbia project.
Isabel Rodriguez, a part-
ner at Solomon & Bernstein,
represented the tenants
Everyday Engineering:
Understanding the Marvels of Daily Life
Taught by Professor Stephen Ressler

* *
along with partner Joel
Bernstein. They credited the
tenants with holding their
building together during de-
cades when many other up-
town buildings deteriorated
or were abandoned.
Ms. Muentes moved into
the West 132nd Street build-
ing in 1968. A few years
later, an uncle, Arturo, pur-
chased it for about $1,300 a
unit. After he died in 1975,
Ms. Muentes said her hus-
band took over the building
and stayed on as superin-
tendent after the city fore-
closed.
The building was de-
THE WALL STREET JOURNAL.
KEVIN HAGEN FOR THE WALL STREET JOURNAL (4)
signed by Magnusson Archi-
tecture & Planning, a firm
with extensive experience
with cost-conscious afford-
able housing. Since the scaf-
folding came down, the
building has faced some crit-
icism.
It includes yellow, beige,
black, red and blue brick,
and an irregular pattern of
windows, that several archi-
tects and preservationists
said is largely disconnected
from the century-old brick
buildings with terra-cotta
trim that line nearby sec-
tions of Broadway.
“It is a good-faith effort
by Columbia,” said Andrew
Dolkart, director of the His-
toric Preservation Program
at Columbia. “They are stick-
ing to the deal they made.”
But he said the building
looks like “affordable hous-
ing” without context. “You
see that a lot in the Bronx, in
neighborhoods where there
isn’t that much context.”
Ms. Rodriguez disagreed.
“They didn’t build Versailles
but they built a beautiful
building that fits with the ar-
chitecture of New York,” she
said. “The roof deck is gor-
geous.”
  

 
25

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Three Structural Systems for Load Bearing
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THE WALL STREET JOURNAL. * * Thursday, February 18, 2016 | A19

The Brooklyn Nets, in proud partnership with

Hospital for Special Surgery, announce the grand
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A20 | Thursday, February 18, 2016 * * THE WALL STREET JOURNAL.
ARTS & ENTERTAINMENT
In Transition, Met Opera Announces New Season
BY JENNIFER SMITH
A
fter a trying few years,
the Metropolitan Opera
is heading into the
coming season with six new
productions intended to sat-
isfy both opera traditionalists
and those with more adven-
turous tastes, as well as a
slimmed-down budget on track
to be its lowest since 2009, ac-
cording to General Manager
L-R: LOUISE LEBLANC; HIROYUKI ITO/GETTY IMAGES
Peter Gelb.
Yet as the Met prepares to
celebrate its half-century at
Lincoln Center for the Per-
forming Arts, the company is
also wrestling with the transi-
tion of a relationship that has
endured for nearly as long: its
musical stewardship by James
Levine.
Mr. Levine became the
Met’s music director in 1976.
Now 72 years old, he has pro-
A scene from Kaija Saariaho’s ‘L’Amour de Loin,’ which is only the second opera composed by a woman to be mounted by the Met. vided unusual continuity
through a succession of lead-
ership arrangements. He is
credited with expanding the
company’s repertoire and has
SEE WHY EVERY
won praise both for his con-
ducting and for raising the
standards of its orchestra.
Over the past five years, the
maestro’s health problems and
attendant cancellations have
SEAT IS TAKEN
at times drawn nearly as much
attention as his musical
achievements, raising ques-
tions about the Met’s plans for
succession.
For now, Mr. Levine is
scheduled to conduct four of
the 26 operas in the Met’s
All January Shows Sold Out 2016-2017 season, which was
Shen Yun Returns in March! unveiled Wednesday.
In recent years, the com-
pany has also grappled with
contentious labor negotiations
that threatened to derail the
2014-2015 season, as well as
financial troubles including a
$22 million budget shortfall in
fiscal 2014.
The Met’s fortunes have
since improved. Agreements
with its unions included a con-
tractual commitment to re-
duce costs. This year, Mr. Gelb
said, the company’s operating
budget is $296 million, the
first time it has dipped below
$300 million since the
2009-2010 season.
But speculation over the
timing of Mr. Levine’s eventual
transition, and who might fill
his shoes, has continued to
dog the Met. Sidelined for two
years by a spinal injury, Mr.
Levine also suffers from Par-
kinson’s disease. Recently that
condition appears to have
worsened, making it difficult
for musicians and singers to
follow his gestures from the
podium, said Mr. Gelb.
The Met had intended to
announce his retirement late
last month, but held off after
Mr. Levine’s doctor said ad-
justing his medication could
address some of those gestural
problems, a development re-
ported earlier by the New York
Times.
M
“We are all waiting to see
how he reacts to his change in
AYBE IT’S the action-packed stories “Incredible... his medication,” Mr. Gelb said.
“That will really determine
filled with ancient wisdom. Or it could be Groundbreaking!” what he is able to conduct go-
ing forward, either as music
the rich expressiveness and high-flying director or in an emeritus po-
— MSNBC sition, which he will eventu-
leaps of classical Chinese dance. Or perhaps the ally transition to.”
Mr. Gelb declined to discuss
unique East-West orchestra and cutting-edge potential successors to Mr.
Levine.
digital backdrops. In the end, the true magic of “Beautiful... Mr. Levine, through his
manager, declined to comment
Shen Yun is something you have to experience a nimble mastery.” beyond confirming his medical
situation.
for yourself. Don’t miss this chance! — Chicago Tribune His conducting obligations
for the season include the
Met’s first new production of
Richard Strauss’s “Der Rosen-
“5,000 years of Chinese music and kavalier” since 1969, set to
star the renowned soprano
dance, in one night!” Renée Fleming, as well as a re-
vival of Mozart’s “Idomeneo.”
— The New York Times Mr. Levine is also scheduled
to lead the Met’s orchestra in
“Very elegant, very athletic, very skilled!”
— John McColgan, Riverdance Producer
Experience a Divine Culture
MARCH 2-13 Tickets start at $80
800-818-2393
LINCOLN CENTER DAVID H. KOCH THEATER ShenYun.com/NY
Kristine Opolais in ‘Rusalka,’ an Antonín Dvořák opera about a
water nymph whose love for a human prince ends in tragedy.
three postseason perfor-
mances at Carnegie Hall, as he
is this season.
A number of notable guest
conductors are slated for the
Met’s 2016-2017 season, con-
tinuing a pattern that Mr. Gelb
said in recent years had
helped “fill the void when the
Maestro wasn’t here,” though
he added, “there is no replace-
ment for one steady hand.”
Simon Rattle, principal con-
ductor of the Berlin Philhar-
monic and the London Sym-
phony Orchestra’s next music
director, will kick off the sea-
son in September, conducting a
new production of Richard
Wagner’s “Tristan Und Isolde.”
The staging is a co-production
with Festival Hall Baden-Baden,
the Polish National Opera, and
China’s National Centre for the
Performing Arts in Beijing.
On New Year’s Eve, Gianan-
drea Noseda, the incoming
music director of the National
Symphony Orchestra in Wash-
ington, D.C., returns to the
Met to conduct Bartlett Sher’s
staging of “Roméo et Juliette”
by Charles Gounod, starring
Diana Damrau and Vittorio
Grigolo.
James Levine is
scheduled to conduct
four operas in the
2016-2017 season.
Other new productions in-
clude Rossini’s “Guillaume
Tell,” a co-production with the
Dutch National Opera, and
“Rusalka,” an Antonín Dvořák
opera about a water nymph
whose love for a human prince
ends in tragedy.
Fabio Luisi, the Met’s out-
going principal conductor will
conduct “Guillaume Tell,”
while “Rusalka” will be in the
hands of Mark Elder, music di-
rector of the Hallé Orchestra
in Manchester, England.
The Met’s Dec. 1 premiere
of “L’Amour de Loin,” a yearn-
ing 2000 opera by Finnish
composer Kaija Saariaho, will
be led by the buzzy conductor
Susanna Mälkki, also a Finn, in
her Met debut.
Inspired by the tale of a me-
dieval French troubadour, the
opera has just three main
characters and turns on mes-
sages sent across the sea to a
distant love. “I liked the clarity
of it, and the place it left for
the music,” said Ms. Saariaho,
who will also participate in a
number of New York events
this fall celebrating her work.
“L’Amour de Loin” was her
first opera, and is only the
second one composed by a
woman to be mounted by the
Met. In this staging by Robert
Lepage, a co-production with
L’Opéra de Québec, the sea is
represented by a series of
bands with LED lights that ex-
tend the width of the prosce-
nium and over the orchestra.
In April 2017, Yannick
Nézet-Séguin, music director
of the Philadelphia Orchestra
and the Rotterdam Philhar-
monic Orchestra, is scheduled
to conduct a revival of “The
Flying Dutchman,” his first
Wagner opera at the Met.
A rising star, Mr. Nézet-Sé-
guin is rumored to be under
consideration to succeed Mr.
Levine.
KRISTIAN SCHULLER/METROPOLITAN OPERA
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.
Nets’ Brooklyn Pad Has No Superintendent
As NBA trade deadline
arrives, Brooklyn boasts
a new facility, but no GM
BY ALEX RASKIN
The Nets continued their strong
performance in Brooklyn’s thriving
real-estate market on Wednesday,
opening their new $50 million prac-
tice facility, the HSS Training Center,
in the borough’s Industry City.
Team owner Mikhail Prokhorov
was on hand to unveil the renovated
warehouse near Brooklyn’s Sunset
Park neighborhood, which encom-
passes 70,000 square feet and houses
two basketball courts, a rooftop
lounge with a view of Manhattan, an
on-site barber chair, and all the high-
tech accouterment needed to aid and
preserve the 14-40 Nets.
The Nets moved into downtown
Brooklyn’s Barclays Center in 2012,
but now that they have abandoned
their longtime practice facility in
East Rutherford, N.J., they officially
have both feet in Brooklyn. The
borough will benefit from an addi-
tional 40 full-time jobs, Mayor Bill
de Blasio said.
“You see the caps, you see the T-
shirts,” de Blasio said before
abruptly leaving the midday news
conference. “It has been something
that has added to a sense of Brook-
lyn as an extraordinary place, a spe-
cial place, a place that’s getting bet-
ter all the time.”
For all the property value the Nets
have added to Brooklyn, though,
erecting a title contender has proven
to be far more difficult. As the NBA’s
annual trade deadline arrives Thurs-
day, the team, though very much in
need of roster improvements, is with-
out a general manager. And Prokho-
rov doesn’t seem to be in any rush to
hire one.
“I think I need maybe one week
more,” said Prokhorov, who insisted
that he is “listening more than
speaking” during the hiring process.
Prokhorov had more to say in an
open letter to fans published
Wednesday in which he outlined
some of the lessons he has learned
in the six years since he purchased a
controlling interest in the team. The
missive, published by Yahoo! Sports,
EXCLUSIVE TO SUBSCRIBERS
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* *
Above, Nets owner Mikhail Prokhorov spoke with reporters Wednesday at the Nets’ new Brooklyn practice facility. The
70,000-square-foot complex features a barber’s chair and a chef. But the 14-40 Nets still lack a general manager.
conveyed a few regrets, such as
overspending on boldface names
without first having a proper strat-
egy in place.
“… [A]s the person who signed
the checks, lemme tell you, it cost a
boatload,” Prokhorov wrote. “We
had been told that you can’t buy a
Experience New York’s Acclaimed
Contemporary Art Fair as a VIP
Explore an international collection of contemporary art at Art on Paper with
complimentary VIP tickets. Attend the event’s preview party and take a private
tour of works that push the boundaries of paper as a medium.
NEW YORK, NY | MARCH 3–6, 2016
SPORTS
championship. Truer words were
never spoken.”
Included in the letter was a section
titled “Culture Trumps Talent,” which
hints at a preference for a candidate
such as San Antonio Spurs assistant
general manager Sean Marks, who
has been identified as a contender for
EXPERIENCE
Thursday, February 18, 2016 | A21
KEVIN HAGEN FOR THE WALL STREET JOURNAL (3)
the Brooklyn job in multiple reports.
Marks, the New Zealand native and
12-year NBA veteran, has been study-
ing winning basketball culture for
years: He played for revered Spurs
coach Gregg Popovich for three sea-
sons, helping win a title in 2005, then
captured another championship as a
@wsjplus #wsjplus
Spurs assistant coach in 2014.
That he currently works under
Spurs GM R.C. Buford can only help
Marks’s candidacy, given Buford’s
reputation for finding good players
overseas—a talent that will be sorely
needed by the Nets, who don't have
full control of a first-round draft
pick until 2019.
In fact, 10 hours before it posted
Prokhorov’s letter to fans, Yahoo!
Sports reported that the Nets had
indeed offered the position to Marks.
But there is no clear indication that
he is willing to leave the Spurs, who
could decide to groom Marks to re-
place Buford when the time comes.
Despite writing for Yahoo! Sports
earlier in the day, Prokhorov refuted
the site’s report, claiming that no of-
fer was made to Marks or anyone
else. He even took opportunity to
squeeze in a joke when asked whether
Marks had turned him down: “I’ve
never heard this name before.”
The billionaire owner has more
than enough cash to make a compet-
itive offer, so it would be an embar-
rassment for the Nets if Marks
spurned them. But maybe not a sur-
prise. There is reason for any candi-
date to hesitate when it comes to
helping Brooklyn get back on track.
When the Nets acquired future Hall
of Famers Paul Pierce and Kevin Gar-
nett from the Boston Celtics prior to
the 2013-14 season, erstwhile GM
Billy King practically depleted the
Nets’ supply of draft picks, effec-
tively setting the franchise back sev-
eral years.
As Prokhorov put it in his letter
to fans: “The problem for the Nets
has been lack of concept.”
The team’s hopes now rest on for-
mer All-Star center Brook Lopez,
power forward Thaddeus Young, a
handful of prospects including rook-
ies Rondae Hollis-Jefferson and
Chris McCullough, and the salary-
cap space they are expected to enjoy
over the next few seasons.
The new state-of-the-art Brooklyn
practice facility should also help
them pursue top free agents.
“What player wouldn’t want to
call the HSS Training Center his
home?” Lopez said Wednesday.
The answer, unfortunately for
Nets fans, is one who hopes to join a
winning team.
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
A22 | Thursday, February 18, 2016 * * THE WALL STREET JOURNAL.

SPORTS
Aging Yankees Try Prudence for a Change
Continued from page A15
least until some of their giant con-
tracts expire.
Instead, the Yankees turned to
the trade market to begin the pro-
cess of adding youth and athleticism
without spending too much money.
They shipped pitcher Adam Warren
to the Cubs for 25-year-old All-Star
infielder Starlin Castro. And they
bolstered a strong bullpen by add-
ing 27-year-old closer Aroldis Chap-
man from the Reds in exchange for
four prospects. Both moves were
made without committing to more
expensive, long-term contracts.
But for all their efforts to avoid
extravagance this winter, the Yan-
kees will never opt for true finan-
cial austerity. They will still pay
five players—CC Sabathia, Mark
Teixeira, Masahiro Tanaka, Jacoby
Ellsbury and Alex Rodriguez—more
than $112 million in 2016.
“Our payroll is pretty big,” reliever
Andrew Miller said. “It’s hard for us
to cry poor in a situation like this.”
Therein lies the challenge: Can
they compete for a championship
right now, while keeping their eyes,
and wallet, focused firmly on the fu-
ture? This week they will start to
find out. Here are three questions
the Yankees will want to address be-
fore heading back to the Bronx.

How will they manage their
bullpen? Chapman’s arrival gives
the Yankees, at least on paper, one
of the most dominant late-inning
relief combos in recent memory.
Among pitchers with at least 35 in-
nings, Chapman, Miller and Dellin
Betances ranked first, second and
third in strikeouts per nine innings
last season.
The decision to supplement
Miller, who converted 36 saves in
2015, and Betances reflects a grow-
ing trend in baseball. The Royals
ascended in large part thanks to a
similar approach, leaning on unas-
sailable relievers to compensate for
an inconsistent rotation.
“That’s where teams are going,”
catcher Brian McCann said.
“They’re realizing that back-end
bullpens are winning champion-
ships, and your starter can go out
and give 100 pitches in five innings
and hand the ball over.”
The onus falls on manager Joe
Girardi to determine how best to
utilize all three pitchers on the
field and, perhaps more important,
massage their egos.
Girardi said last month that he in-
tends to open spring training with
Chapman as his closer, likely pre-
ceded by Miller in the eighth and Be-
tances in the seventh. (Chapman still
faces the possibility of an early-sea-
son suspension stemming from an
alleged domestic-violence incident.)
Miller insists he is handing the
ninth inning to Chapman without
protest, saying he will “show up
and be ready to pitch in whatever
role they ask.”
But these situations don’t always
go smoothly: Last year, Drew Sto-
ren posted a 1.73 ERA and saved 29
games for the Washington Nation-
als through July 28. Then the Nats
traded for Jonathan Papelbon and
demoted Storen to the eighth. Frus-
trated, Storen pitched to a 6.75 ERA
in his next 20 games before break-
ing his thumb when he angrily
slammed his locker shut.
If Girardi can convince all three
to accept their posts, the Yankees
boast a weapon unlike any other.
How will they get to the bull-
pen? The formula sounds easy
enough: Have a lead after six in-
nings, make the call to the bullpen,
game over. But those first six innings
could prove difficult. Barring injury,
the Yankees know how their rotation
will line up: Tanaka, Luis Severino,
Michael Pineda, Nathan Eovaldi and
Sabathia, with Ivan Nova as insur-
ance. This group could thrive—if ev-
erything falls into place.
The structural integrity of
Tanaka’s elbow remains an issue,
and Eovaldi didn’t pitch after Sept.
5 because of an elbow problem of
his own. Sabathia’s performance
improved dramatically late last sea-
son after he started wearing a knee
brace, but his health—not to men-
tion his stint in an alcohol rehab fa-
cility in the fall—raises questions.
In spring training, the Yankees
will probably treat several backup
options as potential starters, includ-
ing Nova, Bryan Mitchell and An-
thony Swarzak.
Who will replace Greg Bird?
When the Yankees announced that
first-base prospect Greg Bird would
undergo season-ending shoulder
surgery, they tried to downplay it.
As the Yankees open spring camp in
Tampa, their durability is a primary
concern. Far left, first baseman
Mark Teixeira. Left, starters Nathan
Eovaldi, CC Sabathia and Masahiro
Tanaka all spent time on the
disabled list last season.
General manager Brian Cashman
pointed out the Yankees never
planned to carry Bird on the major-
league team anyway, so they could
withstand the loss.
But considering Teixeira’s exten-
sive injury history, Bird’s absence
could hurt the Yankees more than
they want to admit. After Teixeira
went down with a leg injury last
August, Bird filled in admirably, hit-
ting 11 home runs in 46 games.
Cashman said that infielder
Dustin Ackley will man first base
when Teixeira doesn't, and that the
Yankees don’t intend to use Rodri-
guez there. The team could eventu-
ally pursue other options on a mi-
nor-league contract.
At this point, the Yankees must
hope that Teixeira stays healthy. In
fact, they must hope a lot of players
stay healthy. More than anything
else, the Yankees will consider
spring training a victory if they
leave Florida in one piece.

Luis Severino Is So Good, Taking Up Arms

He Could Even Pitch for the Mets
Here is how young Yankees ace Luis Severino compares with the Mets’ five aces
through their first 11 career starts, including the postseason, ranked by ERA.
OPS PITCHES/ FASTBALL
George Steinbrenner would love And now the Yankees have again PITCHER AGE IP K/BB ALLOWED INN. MPH ERA
Luis Severino. responded to dominant young Mets Matt Harvey 24 66.1 2.86 .593 16.2 94.6 2.44
The late Yankees owner always pitching by unearthing a hurler who Steven Matz* 24 50.1 3.36 .658 16.3 94.3 2.68
tried to respond in kind when the appears to be just as good, at an even Luis Severino 21 62.1 2.54 .705 16.4 95.4 2.89
crosstown Mets threatened his local younger age, than Matt Harvey, Zack
Noah Syndergaard 22 66.2 5.14 .635 16.3 97.0 3.11
Wheeler, Jacob deGrom, Noah Synder-
Take a Number gaard and Steven Matz were when Jacob deGrom 26 66.2 2.46 .712 16.5 93.4 3.38
they emerged on the MLB stage. Zack Wheeler 23 63.0 1.97 .742 17.6 94.5 3.43
When you compare all of these source: Stats, LLC *nine career starts The Wall Street Journal.
superiority. In 1984, when 19-year-old pitchers through their first 11 starts
Dwight Gooden was the talk of base- (Matz has only nine, including the
ball, Steinbrenner promoted an even postseason), Severino stacks up very Severino through 11 starts is by far slugging percentage allowed (.705 to ino—one Mets fans are very familiar
younger phenom in Jose Rijo. A decade well in ERA despite pitching in a the youngest of the group, too. .712) and efficiency (16.4 pitches per with—is that his innings may be lim-
later, Steinbrenner got the jump on the tougher park and league. His average The closest comparison among inning, to 16.5). What’s especially ex- ited in 2016 no matter how well he
Mets’ “Generation K” by promoting his fastball velocity (a blistering 95.4 the Mets’ young starters, age aside, is citing for Yankees fans is that de- pitches, given his youth and relatively
own rookie pitcher, Andy Pettitte, who mph) tops everyone except Synder- deGrom. Their figures nearly match in Grom continued to improve, develop- heavy 2015 workload (a career high
ended up outshining Paul Wilson, Jason gaard, who finished his rookie season strikeout-to-walk ratio (2.54 for Sev- ing into one of baseball’s best 161.2 innings including the minors).
Isringhausen and Bill Pulsipher. as baseball’s hardest-throwing starter. erino, 2.46 for deGrom), on-base plus starters. The only drawback for Sever- —Michael Salfino
FEATURE (CLOCKWISE FROM TOP): REUTERS; ASSOCIATED PRESS; GETTY IMAGES; TAN: ASSOCIATED PRESS

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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Boeing Defends Course
In Wake of Stock Slide
AEROSPACE | B2
© 2016 Dow Jones & Company. All Rights Reserved.
Corporate Profits in Japan Bend to Yen
BY MEGUMI FUJIKAWA
TOKYO—Japanese corporate
profits fell nearly 10% last quar-
ter, and many companies are
bracing for more pain ahead as
a stronger currency under-
mines Prime Minister Shinzo
Abe’s economic program.
A sharp decline in the yen
drove profits to record levels in
recent years, helping push the
stock market to multiyear
highs. Under the “Abenomics”
program, those profits have
been touted as a key link in a
“virtuous cycle” that should
DUSTIN R. WILLIAMS/BLOOMBERG NEWS
The Energy Atlantic tanker was supposed to collect Cheniere’s first-ever LNG cargo last month, but the shipment was delayed.
Cheniere’s Gas Hits Tough Market
The first ship carrying natu-
ral gas from the Gulf Coast is
expected to depart soon, mark-
ing the emergence of the U.S.
By Chester Dawson,
Bradley Olson
and Christian
Berthelsen
as a major exporter and the
globalization of the once
highly regionalized gas trade.
But the debut of a shale-
fueled gas-export industry is
raising questions about
whether too many sellers are
chasing too few buyers, deep-
ening another boom-and-bust
cycle. The price of liquefied
natural gas has dropped 50%
over the past year in Asia, the
world’s largest and tradition-
ally most lucrative market for
LNG.
The destination of the Gulf
Hormone
Therapy
May Help
Older Men
BY MELINDA BECK
The first results from a
long-awaited trial of testos-
terone replacement for older
men found that bringing their
levels up to that of younger
men improved their sexual
function, but had only minimal
effect on their energy levels
and walking ability.
The $50 million Testoster-
one Trial, funded largely by
the federal government, aims
to answer persistent questions
about whether replacing tes-
tosterone lost due to normal
aging in older men can allevi-
ate such age-related ills as de-
creased energy, sexual interest,
cognition and bone density.
Results of the first three of
seven studies were published
in the New England Journal of
Medicine on Wednesday.
Please see TRIAL page B2
BUSINESS & TECH.
lead to higher wages and infla-
tion, and ultimately sustainable
growth.
But growth in wages and in-
flation has been weak, at best,
and renewed strength in the
yen, particularly since January,
has many voicing concerns
about falling profits and stock
prices as trade with China falls
on sliding demand.
A slowdown in China and
falling oil prices have already
hit Japanese companies such as
makers of electronics and ma-
chinery for the global energy
industry, and the effects are
Looming Glut
The world’s appetite for North American liquefied natural gas is expected to be much lower than what
LNG projects across the U.S. are getting ready to produce.
Expected production of U.S. LNG projects being built or planned, in billions of cubic feet a day
Completed* Under construction
2.76B 7.86B
1 project
Projected demand for North American LNG by 2022
6.5B
Sources: U.S. Federal Energy Regulatory Commission; CIBC (projected demand)
Coast gas is likely to be South
America, with Petróleo Brasil-
eiro SA in negotiations to buy
the cargo—which could depart
the Louisiana bayou as early as
next week, according to people
familiar with the transaction.
Petrobras didn’t respond to
requests for comment.
Apple CEO Cook’s Risky Encryption Strategy
IM COOK is playing a dan-
T
gerous game of brink-
manship with the U.S.
government. In the process, he
may set in motion political and
judicial processes that will en-
danger the security of all our
mobile de-
vices.
First, let
me say that
I agree with
the spirit of
KEYWORDS Mr. Cook’s
CHRISTOPHER open letter
MIMS rebuffing a
court order
that Apple
Inc. create a new version of
the iPhone’s operating system
to allow the Federal Bureau of
Investigation to access the
locked, encrypted phone used
by one of the assailants in the
mass shooting in San Bernar-
dino, Calif., last year.
Mr. Cook asserts, correctly,
that the FBI’s request—for Ap-
ple to create new software
that overcomes the phone’s in-
built security—is unprece-
dented. “We can find no prece-
dent for an American company
being forced to expose its cus-
EARNINGS B4 | WSJ.D B5 | CROSSWORD B9
* * * * THE WALL STREET JOURNAL.
also being felt across the re-
gion. Weak global demand has
continued to weigh on exports
in China and other Asian na-
tions. South Korea saw an
18.8% year-to-year decline in its
January exports, its biggest
monthly drop in several years.
Japanese exporters such as
auto makers and technology
firms are among those feeling
the effects.
Toshiba Corp., hit by an ac-
counting scandal and falling de-
mand for its products, said ear-
lier this month it would record
the biggest annual loss in its
Construction pending
12.5B
5 projects
*As of Jan. 26, Cheniere Sabine Pass plant trains 1 & 2 were 96%
It also comes as the com-
pany behind the effort, Che-
niere Energy Inc., tries to
right itself after a messy
boardroom drama that led to
the firing of Chief Executive
Charif Souki in December.
Since then, Cheniere—under
the leadership of its board of
tomers to a greater risk of at-
tack,” he wrote.
Here’s the rub: The FBI
says it wants Apple to create
this software only for this
one device. But if the code
gets into the wild—and these
things have a way of doing
so—it will render the encryp-
tion on all iPhones every-
where essentially moot.
Still, the specifics of this
case are messier than Mr.
Cook allows, and not all in
Apple’s favor.
First, there are the optics
of the situation: As tech ana-
lyst Ben Thompson notes, “It’s
a case of domestic terrorism
with a clear-cut bad guy and a
warrant that no one could ob-
ject to, and Apple is capable of
fulfilling the request.”
Second, the iPhone in ques-
tion is an older model iPhone
5C. It differs enough from
newer iPhone models that, as
developer and iOS security ex-
pert Dan Guido notes, Apple
should technically be able to
create for the FBI a solution
that wouldn’t endanger the se-
curity of newer iPhones.
Finally, there is a danger
T-Mobile Dials Up
The Right Numbers
EARNINGS | B4
140-year history—¥710 billion
($6.22 billion)—as the company
wrote down the book value of
several units, including energy
and infrastructure, while re-
structuring costs ballooned.
Net profit at digital camera
and office-equipment maker
Canon Inc. fell 14% for its fiscal
year ended Dec. 31 amid the
economic slowdown in China
and other Asian countries.
Earnings at major-listed Japa-
nese companies fell a combined
9.8% from a year earlier in the
October-December period, ac-
cording to data compiled by
Total
23.2B
10 projects
complete, trains 3 & 4 were 55% complete.
THE WALL STREET JOURNAL.
directors—has scaled back the
company’s ambitions set by
Mr. Souki, laying off an oil-
trading team that he had re-
cruited to expand the business
and filing a lawsuit earlier this
month to claw back $46 mil-
lion of company funds he in-
Please see LNG page B8
There is a risk that however this case turns out, Apple could lose
a larger legal war. The Apple store on Fifth Avenue in New York.
that, however this case turns
out, Apple risks losing a
larger legal war. The fallout
could force Apple—and oth-
ers, including Google Inc. and
Microsoft Corp.—to back
down on their project of
bringing strong encryption to
everyday devices.
I am not a lawyer and this
isn't an analysis of constitu-
tional law, but some suggest
that Apple is on the wrong
Thursday, February 18, 2016 | B1
SMBC Nikko Securities. That 5.5% against the U.S. dollar, as
covered firms listed on the first investors fearing a global slow-
section of the Tokyo Stock Ex- down and turmoil in financial
change with a financial year markets sought a haven. The
ending March 31. yen often strengthens during
“It seems inevitable that a turbulent times, and many are
stronger yen will affect corpo- predicting further gains for it
rate earnings in the next fiscal this year. The dollar could hit
year given uncertainty about ¥100 by the end of March and
how far and how long the yen’s ¥95 by the end of the year, Bar-
uptrend will continue,” said clays recently said.
Norihiro Fujito, a senior invest- That would hurt many Japa-
ment strategist at Mitsubishi nese companies. For every one-
UFJ Morgan Stanley Securities. yen decline in the dollar or
Stronger headwinds are euro, operating profit at Japa-
blowing in the current quarter. nese companies such as auto
Since Jan. 1, the yen has gained Please see JAPAN page B4
Tech Distributor
Latest U.S. Target
By a China Firm
HNA Group to buy Ingram Micro for $6 billion
as country’s companies aggressively seek deals
BY DON CLARK cro’s chief executive, said the
AND JOSH BECKERMAN deal would allow his com-
pany to accelerate invest-
Technology distributor In- ments in technology while
gram Micro Inc. agreed to be becoming part of a larger or-
acquired for about $6 billion ganization with “complemen-
by a unit of Chinese con- tary logistics capabilities and
glomerate HNA Group. a strong presence in China.”
The deal is the latest in a Chinese companies have
string of investments by Chi- become more aggressive
nese companies in U.S. tech lately in pursuing deals amid
companies, including deals concerns about China’s weak-
involving U.S. makers of com- ening economic growth, in-
puter chips that have at- vestment bankers say.
tracted scrutiny on national- In January, Zoomlion
security grounds. Heavy Industry Science &
Ingram, founded in 1979, is Technology Co. offered to
one of the largest distribu- buy U.S. crane-maker Terex
tors of personal computers Corp. for about $3.3 billion,
and other technology prod-
39%
ucts including printers, scan-
ners, TVs, videogame con-
soles, video monitors and
software. The Irvine, Calif., The size of the premium
company recently branched Tianjin Tianhai would pay to
into a range of higher-margin buy Ingram Micro, the Irvine,
professional services. Calif., technology distributor.
HNA’s Tianjin Tianhai In-
vestment Co. will pay $38.90 an attempt to override an ex-
a share for Ingram, repre- isting deal between Terex
senting a premium of about and Finland’s Konecranes
39% over the average closing Oyj.
share price of Ingram Micro In December, a group in-
for the 30 trading days ended cluding China Resources Mi-
Tuesday. Ingram shares rose croelectronics Ltd. and Hua
23.6% to $36.65 in after- Capital Management Co.
hours trading. made an unsolicited bid for
HNA Group, which claims Fairchild Semiconductor In-
more than 180,000 employ- ternational Inc., which al-
ees, evolved from marine ready had a deal with U.S.
shipping into operations that chip maker ON Semiconduc-
include transportation, logis- tor Corp.
tics, tourism, banking and in- Fairchild on Tuesday re-
surance. Its logistics group jected the Chinese proposal,
includes companies such as stating a preference for the
Jinhai Heavy Industry Co. ON transaction. Fairchild
Alain Monié, Ingram Mi- Please see INGRAM page B5
case is that it would set a
precedent for future requests
by law enforcement that
could eventually lead to Ap-
ple’s (and, frankly, consum-
ers’) worst nightmare.
That nightmare, which I
wrote about previously, is a
situation in which Apple is
forced to build a security
ANDREW BURTON/GETTY IMAGES
“back door” into all iPhones,
the results of which are
equivalent to removing en-
cryption from the phones.
Unless we want to make
the financial, health and per-
sonal data of everyone with
an iPhone available to cyber-
criminals, hackers and state
actors, encryption back doors
aren't something we as a civi-
side of legal precedent in its lization want to create. Here,
fight to protect devices from however, the FBI isn't asking
search with a warrant. for an encryption back door,
Apple is publicly battling at least not explicitly. Rather,
the FBI over protection of it is asking for something
data in a grisly, high-profile more specific. And I worry
case that would require the that Apple is creating a situa-
company to, at most, endan- tion in which eventually the
ger the security of older courts or Congress will force
model iPhones. The only logi- it to do even more damage to
cal explanation I can think of the security of our most-per-
for why Apple might be sonal devices than capitula-
standing on principle in this tion would require.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Thursday, February 18, 2016 * **** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS NEWS

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

A-B
AbbVie.........................B2
ABC Entertainment....B3
Facebook......................B4
Faraday Future............B9
FIH...............................C3
Pacific Investment
P

Management.............C2
Jet Maker
Adidas ......................... B3
Airbus Group...............B2
Air Canada .................. B2
Fortress Investment
Group.........................C3
Foundation Capital
Parallax Energy...........B8
Perfect World Pictures
.....................................B5
Cuts Jobs,
Alibaba Group Holding
..................................... C8
Alphabet......................A6
Amazon.com .......... B3,C1
Partners .................... C3
G-I
Garmin.........................C4
Petrobras.....................B1
Prada ........................... B4
Priceline ................. B4,C4
Prime Meridian Capital
Pursuing
ANA Holdings.............B4
Ant Financial...............C8
Apple......................A6,B1
GE................................B3
General Electric .......... B3
General Mills...............B3
Glencore.......................C3
Management.............C3
Prosper Marketplace...C1
Q-S
Rebound
Arrowgrass Capital Quicksilver Resources A2
BY BEN DUMMETT
Goldman Sachs Group

TOMOHIRO OHSUMI/BLOOMBERG NEWS

Partners .................... C3
Aston Martin Lagonda
.....................................B9
AT&T............................C8
Avant...........................C3
Bain Capital.................C3
Bank of America....C1,C4
Big Lots.......................C3
Blue Elephant Capital
Management.............C3
Boeing ......................... B2
Bombardier..................B2
C-D
Campbell Soup............B3
.................................. C2,3
Google ......................... B1
Groupon.......................C8
Hyundai Motor............B9
Ingram Micro...............B1
Isetan Mitsukoshi
Holdings....................B4
J-L
Japan Airlines.............B4
Jinhai Heavy Industry B1
J.P. Morgan Chase......C2
LeEco...........................B9
LendingClub.................C1
Roche Holding.............B4
Segment Y..................B9
Sentient Jet................D4
Shuddle.......................A2
Sprint .......................... B4
T-V
Tianjin Tianhai
Investment ............... B1
Time Warner...............B3
T-Mobile US...........B4,C8
Toshiba........................B1
Toyota Motor..............B4
21st Century Fox........B3
Under Armour.............B3
Bombardier Inc. on
Wednesday said it would cut
nearly 10% of its global work-
force after reporting disap-
pointing financial results, but
it also cheered investors with
a long-awaited new order for
its flagship CSeries aircraft.
The Montreal-based com-
Boeing’s accounting method allows it to consider its flagship 787 Dreamliner program profitable. pany said it signed a letter of
intent to sell as many as 75

Boeing’s Chief Defends

Canon...........................B1
Cantab Capital Partners
..................................... C3
Cheniere Energy..........B1
Citigroup............C1,C3,C4
Lions Gate of its larger CSeries passen-
Universal Filmed
Entertainment..........B3 ger jets to Air Canada, that
Entertainment Group
Lululemon Athletica...B3 country’s biggest air carrier.
.....................................B3
Luvo.............................B3
Verizon Communications The firm order, for 45
M-N

Its Accounting, Strategy

Coca-Cola.....................B3
Comcast............B3,B5,C8
Credit Agricole............C4
CSX..............................B4
Deutsche Bank..C3,C4,C8
Deutsche Telekom......B4
Dick's Sporting GoodsB3
Dish Network..............C8
E-F
Energy Transfer Equity
.....................................B8
INDEX TO PEOPLE
A Grom, Charles ............. C3
Ayukawa, Kenichi ....... B9
B H
Bachher, Jagdeep Singh
..................................... C3
Barr, Dean ................... C3
Bellemare, Alain.........B2
Bogdanov, Kelly .......... C1
Bosomworth, Andrew.C2
C Javadi, Rokneddin.......C4
Carter, Braxton...........B4
Chen, Rong..................B5
Christopher, Paul ........ C4
Collins, Andrew .......... D4
Cook, Tim....................B1
D Komileva, Lena............C2
Davis, Don...................C3
Day, Christine ............. B3
deGraaf, Jeff...............C4
Dungey, Channing.......B3
E M
Elmlinger, Joseph........C3
F-G
Fujito, Norihiro ........... B1
Gewecke, Thomas.......B3
MANFRED SEGERER/ULLSTEIN BILD/GETTY IMAGES
Mahindra & Mahindra B9
Maruti Suzuki India....B9
Marvell Technology
Group.........................B5
Microsoft.....................B1
Millennium
Management.............C3
Newmont Mining........B2
Nike.............................B3
Nissan Motor..............B9
Nordstrom...................B3
Guido, Dan .................. B1
Horowitz, Jimmy........B5
Houston, Martin.........B8
I Otake, Tetsuya............B4
Immelt, Jeff................B3
J
Jia, Yueting.................B9
K
Kashkari, Neel.............C1
Kavcic, Aleksandar ..... B5
Kettenmann, Chris......C4
L V
Laplanche, Renaud......C1
Lee, Paul......................B3
Liedtke, Eric................B3
Mahindra, Anand........B9
Makihara, Susumu......C3
Meehan, Joseph..........C3
Milstein, Nesanel........C3
..................................... C8 planes, would be valued at
W-Z about $3.8 billion at list
Wal-Mart Stores.........C1 prices, and the deal could
Walt Disney................B3
reach $6.4 billion if the car-
Wells Fargo.................C1 BY JON OSTROWER “I personally signed off on “It factors into our innova- rier exercised its options for
Whirlpool.....................B4
[our filings] last week.” tion model,” said Mr. Muilen- an additional 30 jets, Bom-
Williams......................B8
Boeing Co. Chief Executive Boeing uses program ac- burg. Boeing has pivoted its bardier said. The actual
Williams Partners ...... B8
Yahoo...........................B2 Dennis Muilenburg on counting to spread its high strategy toward productivity value is likely to be smaller
Zoomlion Heavy Wednesday defended the aero- early production costs over a improvements in its factories, since aircraft customers typi-
Industry Science & space company’s accounting large block of deliveries. The and at its suppliers, to cut cally secure discounts.
Technology................B1
practices and corporate strat- method, which complies with costs, while refocusing its Bombardier has struggled
egy in the wake of weeks of generally accepted accounting product development on more in its ambitious plan to take
volatile stock movements.
The company’s shares have
principles, lets the company
book future profits and cost-
modest incremental advances.
Mr. Muilenburg said Boeing
on giants Airbus Group SE and
Boeing Co. in the commercial-
Mizuno, Hiromichi.......C3 slumped roughly 20% this year cutting expectations in current expects to make a decision jet segment, forcing it to take
Morrison, Denise........B3 on concerns about Boeing’s earnings. That allows Boeing over the next 12 to 18 months steps to shore up its balance
Moura, José ................ B5 cash generation and competi- to consider the 787 Dream- about a new plane that would sheet amid a series of delays
Muilenburg, Dennis....B2 tive position, and took another liner program profitable, even fit between its biggest single- in the CSeries program.
O hit last week following a me- though its cost to build each aisle 737 and its Dreamliner The Air Canada order high-
dia report that the Securities jet remains higher than the for medium-range missions. lighted the jet’s competitive
P and Exchange Commission was sale price. Boeing expects to The CEO also defended Boe- strengths, including its fuel ef-
Pedersen, Helge..........C2 probing the company’s finan- break even on those unit costs ing’s competitive position, ficiency and comparatively
Praet, Peter.................C2 cial projections. later in 2016. saying that cost cutting amid low operating costs, and
S On Wednesday, Boeing’s “It’s a very disciplined, rig- continued pricing pressure ended a long drought in new
Schulz, Christian.........C2 stock rose 3.3% in New York orous accounting process— from rival Airbus Group SE orders. Bombardier hadn’t an-
Snyder, Peter..............B2 trading to finish at $116.34. one we understand well. And hadn’t changed its anticipated nounced any CSeries orders
Souki, Charif...............B1
Mr. Muilenburg stood be- the way we apply it on 787 is margins. He called plans for since September 2014.
T hind Boeing ’s longtime use of the same way we apply it on further cuts by eliminating “This is a strong endorse-
Theodore, Sam............C4 a system called program ac- all of our commercial airplane management jobs as an offen- ment,” Bombardier Chief Exec-
counting, and reaffirmed the lines,” he said. He said he ex- sive, not defensive, move. utive Alain Bellemare said on
Vollebregt, Nicole.......B3 company’s expectation that pects the advanced jet to be as Despite low oil prices and a conference call with ana-
W its flagship 787 Dreamliner profitable as its long-range slowing economic activity in lysts. “We are turning Bom-
Ward, Thomas.............C3 would deliver the profit and 777 aircraft over the life of the key regions that Boeing is bardier around.”
Weinstein, Brian.........C3 cash flow that the company program. counting on for its growth, Mr. On Wednesday, Bombar-
Whitmarsh, Theresa...C3 has promised investors. Mr. Muilenburg said there Muilenburg said that emerging dier’s stock was up 21% at 1.09
Y He neither confirmed nor were no plans to change the markets like China, India and Canadian dollars (79 U.S.
Yanover, Paul..............B3 denied the existence of any in- company’s program account- Indonesia are “vastly under- cents) in Toronto.
Koo Young-key............B9 vestigation—the SEC also has ing system, which has so far served,” with air-traffic expan- The Canadian government
declined to comment—but tallied more than $28.5 billion sion outpacing local gross do- is facing rising pressure to
sought to calm investor con- in deferred costs building the mestic product growth. help shore up the company
cerns. Dreamliner. But he acknowl- Mr. Muilenburg said the amid significant job losses, in-
“We are very confident in edged that recovering those company will be delivering cluding the 2,400 job cuts in
our financials,” Mr. Muilen- costs was a driver in Boeing’s “well north of 900” aircraft Quebec that Bombardier an-

burg said at an investor event. overall corporate strategy. annually within five years. nounced on Wednesday.

Airbus to Retain Border-Protection Business

BY ROBERT WALL
LONDON—Airbus Group
SE has scaled back plans to
shrink its defense and security
operations, deciding to retain
a border-protection business it
Yahoo declined to say how many employees were affected by the cuts. previously sought to unload.
Airbus told employees in a
with Saudi Arabia drove the
decision, the Toulouse-based
company said.
An Airbus spokesman con-
firmed the decision.
The decision to retain its
border-protection business
doesn’t reflect newfound opti-
mism in the sector, he added,
facilitate a future sale. “too optimistic,” Airbus execu-
Airbus, the world’s second- tives said.
largest plane maker, has been Airbus indicated it would be
reducing its exposure to the cautious in managing the bor-
defense market where growth der-security business, which
prospects are more limited. previously has suffered under
The move is part of a wider unprofitable contracts. The
company restructuring aimed company would consider tak-
at boosting profitability and a ing on new business, but only

Yahoo Trims Back

Monday letter that the com- indicating that the business focus on aerospace activities. with “an extremely thorough
pany was removing border se- could be sold at a later date. Airbus had hoped to pick consideration of the risks in-
curity from a planned com- The border-security operation the preferred buyer for the de- volved,” wrote Bernhard Gerw-
bined sale with its defense will remain a separate unit fense and security assets held ert, the head of Airbus Defence

Media Businesses
electronics activities. Delays in within the company’s Defence for sale by the start of this & Security, and Dirk Hoke, in a
securing a border contract & Space division, which would year. That turned out to be joint letter to employees.

BY DOUGLAS MACMILLAN

The retrenching of Yahoo

Inc. is under way.
As of 2013, Yahoo said about
400 people worked in the Bur-
bank office in various depart-
ments, according to its web-
TRIAL fund large-scale safety stud-
ies. The Testosterone Trial
isn’t long enough or large
enough to assess safety issues.
and distance did improve
among trial participants tak-
ing testosterone who hadn’t
reported mobility issues ini-
reason other than age.”
Thomas Perls, a professor
of medicine and geriatrics at
Boston University School of
The Internet company on site. All workers not affected Continued from the prior page The multi-center Testoster- tially. Medicine and a critic of tes-
Wednesday said it plans to by the magazine cuts this week U.S. sales of testosterone one Trial enrolled a total of Testosterone therapy didn’t tosterone therapy, said he was
close seven of its digital maga- were asked to report to Playa products more than tripled 790 men aged 65 and older improve fatigue or low vitality “dismayed” that the Testoster-
zines, including sites dedicated Vista, more than an hour’s over the past decade, to $2.4 with testosterone levels well in men suffering from those is- one Trial was reporting con-
to articles about food, travel, drive from Burbank. billion in 2012, fueled by ad below the average for men sues, but the men did report clusions without assessing
parenting and health, and lay Last month, Yahoo let go at campaigns aimed at middle- aged 19 to 40. having better mood and less safety issues. “How is anybody
off a portion of its workforce least five managers who were aged men concerned about In men with low sexual depression. going to make a judgment
of journalists who worked on working on Brightroll, the “low-T.” But the drugs were function, testosterone treat- “In men with low testoster- about the benefit to risk?” He
them. video ad service it acquired in mainly approved to treat tes- ment significantly increased one, testosterone makes them noted that more than 60% of
Yahoo also told employees 2014, according to a person fa- tosterone deficiencies due to sexual activity, desire and feel better compared to pla- the trial participants were
in Burbank, Calif., that it plans miliar with the matter. medical issues, and the risks erectile function, as measured cebo,” said Peter Snyder, a obese, and that losing weight
to close the office there and re- Ms. Mayer launched several and benefits for normal aging by questionnaires, compared University of Pennsylvania en- alone could raise their testos-
locate them to its nearby facil- of the digital magazines in haven’t been well documented. with those on the placebo, ac- docrinologist and the principal terone levels.
ity in Playa Vista, a person fa- early 2014, part of a broader Sales have declined slightly cording to results published on investigator. He added, how- A spokeswoman for AbbVie
miliar with the matter said. effort to get advertisers to pay since 2014 amid safety con- Wednesday. In men with diffi- ever, that until the other four Inc., which makes AndroGel
The cuts are part of Chief higher prices for ads targeting cerns. The U.S. Food and Drug culty walking, testosterone studies are published later this and contributed it to the Tes-
Executive Marissa Mayer’s plan Web users with specific inter- Administration last year re- didn’t improve the distance year, and more is known about tosterone Trial, said the com-
to lower costs by eliminating ests, such as cars and tech gad- quired testosterone product they could walk in six min- safety risks, “it is premature pany is working with the FDA
15% of Yahoo’s staff, closing of- gets. She hired star journalists labels to warn about possible utes—a common test of mobil- to recommend testosterone and other manufacturers to
fices and shuttering business such as David Pogue, a former cardiovascular issues, and ity—more than the pla- treatment of older men who develop a post-marketing clin-
units. Making Yahoo smaller New York Times technology called on manufacturers to cebo. However, walking speed have low T for no discernible ical trial to study safety issues.
and more profitable could help columnist, and Katie Cou-
Ms. Mayer buy time with in- ric, who left her role as special
vestors, some of whom have
called for new management
and a sale of the company.
correspondent for ABC News to
become Yahoo’s global anchor.
Mr. Pogue and Ms. Couric
Newmont Swings to a Loss Panama 8 Day Tour $1195 Guided Tours Since 1952 +tax,fees
Yahoo earlier this month were unaffected by the cuts, BY EZEQUIEL MINAYA tion reached 39,000 metric Guatemala, Tikal 10 days $1295
said for the first time under Yahoo said. tons, compared with 29,000 Costa Rica 9 days $1095
Ms. Mayer that it would enter- Among the journalists cut Newmont Mining Corp. metric tons a year earlier due ● Panama & Canal 8 days $1195
tain a possible sale of its Web this week was Dan Tynan, the swung to a loss in its fourth to a higher grade ore at the Nova Scotia, P�E�I� 10 days $1395
properties. editor in chief of Yahoo Tech, quarter, hurt by lower metal Batu Hijau location. Canadian Rockies 9 days $1595
Yahoo declined to say how who addressed his colleagues prices and delayed exports Over all, Newmont reported Grand Canyon 8 days $1395
Canal Cruise, Rainforests & California Coast
many employees were affected in a memo on Wednesday. Ya- from Indonesia, among other a loss of $254 million, or 50 8 days $1395
Beaches. All Meals Included! Mount Rushmore
by the latest cuts from its on- hoo is keeping the technology costs. cents a share, compared with a 8 days $1295
Caravan makes it so easy and New England
line media business. Further vertical. Newmont said the average profit of $15 million, or 3 cents 8 days $1295
layoffs are expected in the “I am sure that bigger and realized gold and copper price a share, a year earlier. Exclud- affordable to explore Panama.
coming weeks from other areas better things await all of us,” fell to $1,084 a troy ounce and ing certain items, profit fell to 8-Day fully guided vacation “ Brilliant, Affordable Pricing ”
—Arthur Frommer, Travel Editor
of the company, people familiar Mr. Tynan wrote in the memo, $1.86 a pound, respectively, in 4 cents a share from 17 cents a with two daytime cruises on
with the matter said. which was first published on the quarter, compared with share a year earlier. Revenue the Panama Canal. Free 28-Page Brochure:
The CEO announced on an Politico and confirmed by The $1,194 an ounce and $2.55 a dropped 10% to $1.82 billion.
earnings call last month her Wall Street Journal. “As for Ya- pound a year earlier. Analysts surveyed by
plans to close offices in Dubai, hoo, I am sure it will continue Gold production, mean- Thomson Reuters had pro-
Mexico City, Buenos Aires, Ma- to be Yahoo, for better or while, was flat at 1.3 million jected a profit of 12 cents a
drid and Milan this year. worse.” ounces, while copper produc- share on $1.82 billion in sales.
 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.
AARON HARRIS/BLOOMBERG NEWS
Christine Day plans to build on existing initiatives at Adidas.
Adidas Picks
New Adviser
BY SARA GERMANO
Adidas AG has hired Chris-
tine Day, the former chief ex-
ecutive of Lululemon Athlet-
ica Inc., as part of the German
sportswear maker’s effort to
improve its performance in the
intensely competitive women’s
athletic business.
Ms. Day, 53 years old, who
ran the boutique yoga-wear
maker during a period of tre-
mendous growth, has been
acting as an adviser to Adidas
on retail strategy and collabo-
rations with smaller brands
since the middle of last year.
Adidas confirmed the hire.
Ms. Day, who is the full-
time chief executive of frozen-
food company Luvo Inc., said
she initially “rebuffed” a few
attempts by Adidas to reach
out to her, saying she wasn’t
looking for a consulting gig.
But after connecting with an
Adidas executive about a
shared interest in healthy eat-
ing, Ms. Day said she came
around to the idea of advising
an athletic company, and for-
mally signed on as a consul-
tant in May of last year.
“I have a choice at this
stage in my career to play for
the love of the game,” she said.
From her days at Lulu-
lemon, Ms. Day said she ad-
mired some offerings from
Adidas, particularly its Stella
McCartney line, but noticed
there was work to be done.
“The assets they had, they
weren’t always being fully ex-
pressed in the marketplace,”
she said.
That marketplace is chang-
ing. The so-called athleisure
movement has brought about
smaller, independent women’s
athletic-wear brands that
weave fashion with perfor-
mance. And elsewhere in re-
Immelt Gets Partial Stock Award
BY TED MANN
General Electric Co. Chief
Executive Jeff Immelt missed
a performance target set five
years ago and lost out on a
stock award worth more than
$3 million, the company said
in a filing on Wednesday.
The 2011 incentive package
granted Mr. Immelt 250,000
performance share units,
which are shares of GE stock
that would be granted to the
CEO if the company could hit
two performance targets over
the ensuing five years.
Mr. Immelt hit one target,
entitling him to half of those
shares, that goal being GE’s
total shareholder return beat-
ing the return of the Standard
& Poor’s 500-stock index over
five years through 2015. But
the target for the other half of
Mr. Immelt’s incentive pack-
age, generating $71 billion in
operating cash flow from GE’s
industrial businesses, proved
to be too high, despite his ef-
forts to bolster the company’s
jet-engine, power-turbine and
health-care businesses.
As a result, the 59-year-old
CEO received 125,000 GE
shares last week, valued at
more than $3.4 million. Mr.
Immelt, however, will net just
under $2 million of GE shares
because the incentive program
automatically sells a portion
of the shares granted to the
CEO to cover taxes.
This isn’t the first time that
Mr. Immelt has missed incen-
* * * * *
tail, workout gear has become
omnipresent at high-end de-
partment stores like Nord-
strom Inc. to smaller bou-
tiques, and online. The result
has been a scramble for tradi-
tional sporting-goods compa-
nies to draw in new shoppers.
Adidas is in the midst of an
internal makeover.
The company had faced fall-
ing sales in the U.S. market, the
world’s largest sportswear mar-
ket. It has spent much of the
past year working to regain its
footing, and early indications
point toward a rebound. The
company last week raised its
outlook for 2016 and reported
its fourth-quarter net profit
grew 12% from a year earlier.
Competitors such as Nike
Inc. and Under Armour Inc.
have pledged to expand their
women’s businesses in the
coming years, and have in-
vested heavily in marketing
aimed at female consumers.
Dick’s Sporting Goods Inc.
has opened two boutique
stores called Chelsea Collec-
tive to present merchandise to
women in a new format.
Adidas has moved market-
ing executive Nicole Vollebregt
to run its women’s division.
Ms. Vollebregt has been meet-
ing with Ms. Day and other
company executives, including
global brand President Eric
Liedtke, to turn around the
women’s department. Among
their new offerings: a sub-
scription for a quarterly mail-
ing of select Adidas women’s
products, priced at $150 per
shipment, unveiled last week.
Ms. Day says she isn’t push-
ing for acquisitions at Adidas,
but rather is looking to build
on initiatives that predate her
involvement with the company,
like its sneaker and fashion
line with rapper Kanye West.
CEO Jeff Immelt lost out on half of a 250,000 share incentive.
tive targets while CEO over
more than 14 years, a period
in which GE has grappled with
the near-collapse of its mas-
sive financial-services busi-
ness and Mr. Immelt’s ongoing
effort to transform the con-
glomerate to more closely fo-
BUSINESS NEWS
Fandango to Buy Film Sites
Comcast unit agrees
to acquire Flixster
and Rotten Tomatoes
from Warner Bros.
BY BEN FRITZ
Comcast Corp.’s Fandango
has agreed to acquire the
movie websites Flixster and
Rotten Tomatoes from Time
Warner Inc.’s Warner Bros.,
bringing two Hollywood stu-
dios together online.
GINA FERAZZI/LOS ANGELES TIMES/GETTY IMAGES
The deal will make Warner
Bros. a minority owner of Fan-
dango, the dominant online
ticket seller, which has re-
cently moved into film-related
online videos and movie
downloads. Fandango remains
part of Comcast’s Universal
Filmed Entertainment Group.
The Wall Street Journal
previously reported that the
two companies were in talks
about the deal.
“With Rotten Tomatoes, it’s Flixster and Fandango together have more than 100 million mobile-app downloads, the companies say.
almost self-evident how com-
plementary it is to our busi- the three sites would be a close
ness,” said Fandango President No. 2 online to Amazon.com
Paul Yanover, in an interview, Inc.’s IMDb, which had 73.8 mil-
adding that people who visit lion unique visitors last month.
the site, which aggregates film Flixster and Fandango together
reviews, would be natural have more than 100 million mo-
ticket buyers. bile-app downloads, according
Flixster, he said, provides to the companies.
“an incredibly similar proposi- Warner acquired Flixster
tion” to movie and showtimes and its corporate sibling Rot-
information already offered by ten Tomatoes in 2011, largely
Fandango, though their audi- to drive then-nascent digital
ences have little overlap. “Con- movie sales.
nect that and we quickly light Under the new deal, however,
up more ticketing,” he said. Flixster will soon stop selling
Fandango reached 40.3 mil- films, and focus on movie news
lion people in the U.S. in Janu- and information. Fandango re-
ary, according to comScore cently acquired M-Go, which
data, while Flixster and Rotten sells digital movies, to expand
Tomatoes together attracted into that business. Mr. Yanover
19.4 million visitors. Combined, said it is part of a broader ini-
ABC Entertainment Has New Chief
BY JOE FLINT drama “The Catch.”
This season ABC is in third
ABC Entertainment Group place in viewers among broad-
President Paul Lee has re- casters, behind CBS and NBC. It
signed amid a corporate re- is averaging about 6.6 million
structuring at the broadcast viewers in prime time, a drop
network. of 15% compared with last sea-
Mr. Lee, who led a turn- son when it averaged roughly
around at Walt Disney Co.’s 7.8 million, according to Niel-
ABC last season only to see sen. Its ratings among adults
ratings fall back this season, is ages 18 to 49, the demographic
being succeeded by Channing advertisers prefer to target, has
Dungey, who most recently also declined from last year.
oversaw drama programming However, the departure of
for the network. Mr. Lee after nearly six years
Ms. Dungey becomes the in the post has more to do
first African-American to over- with internal tensions than the
see prime-time programming network’s performance this
for a broadcast network. As season. There was friction be-
head of drama development, tween Mr. Lee and Ben Sher-
she played a key role in several wood, the president of the
successful ABC shows, includ- Disney/ABC TV Group and co-
ing “Scandal” and “Quantico.” chairman of Disney Media Net-
She has a close relationship works, people familiar with
with Shonda Rhimes, a pro- the matter said.
ducer at ABC whose shows in- Since assuming that posi-
clude “Scandal,” “How to Get tion in 2015, Mr. Sherwood has
Away with Murder,” “Grey’s been much more assertive on
Anatomy” and the coming the creative side of ABC’s op-
meet a previous target for
growing operating cash flow.
The latest target miss is a
hangover of rougher times for
GE, which outperformed its in-
dustrial peers last year when
Mr. Immelt completed the
company’s largest acquisition
ever and sold off the bulk of
its GE Capital lending arm,
which had long depressed the
company’s stock price.
Shares of the company are
up 17% from a year ago, but
have lost 6% of their value so
far this year amid concerns
about slowing economic
growth. They closed up 43
cents at $29.29 on Wednesday.
In proxy filings, GE has said
it has worked to more closely
tie the compensation of all of
its executives to the perfor-
mance of the company. As of
last year, the company began
CHRISTOPHE MORIN/BLOOMBERG NEWS
issuing performance share
units to other senior execu-
tives.
The company has said in fil-
ings that Mr. Immelt is under-
paid relative to other chief ex-
ecutives. His base pay rose 9%
to $3.8 million in March 2014,
the company said in a filing
last year, “recognizing his con-
tinued strong leadership of a
company with the global scale
cus on its industrial roots. and diversity of GE and re-
In February 2011, all of Mr. flecting that this increase was
Immelt’s performance stock only his second salary increase
grants from an earlier incen- since 2005.” That filing also
tive package were canceled af- said Mr. Immelt received a
ter the company’s shares $5.4 million bonus, 200,000 in
lagged behind the S&P 500 new performance share units,
performance and failed to and 500,000 stock options.
Thursday, February 18, 2016 | B3
tiative to participate in the
“movie life cycle,” from early in-
formation gathering to theater
attendance to home viewing.
Mr. Yanover said a “good
majority” of Flixster and Rot-
ten Tomatoes’ 50 to 60 em-
ployees will keep their jobs
under Fandango.
The Universal-Warner part-
nership comes soon after
three studios—Lions Gate En-
tertainment Corp, Walt Dis-
ney Co. and 21st Century Fox
Inc.’s Twentieth Century Fox—
led a $50 million investment
into Atom Tickets, a new com-
petitor to Fandango focused
on mobile movie ticketing.
The deals set up an unusual
situation in which three stu-
ABC
Channing Dungey will move up.
erations than his predecessor
Anne Sweeney was and that
has chafed at Mr. Lee, who
was used to a certain amount
of autonomy. The bad blood
between the two reached the
boiling point in recent weeks
Campbell Soup Brews
Venture Capital Unit
BY ANNIE GASPARRO
Campbell Soup Co. is in-
vesting $125 million in its own
venture-capital project to fund
food startups, a move to keep
up with the small, entrepre-
neurial companies that are
driving food trends in the U.S.
Venture-capital investments
are disrupting the food indus-
try, said Campbell Chief Exec-
utive Denise Morrison. Since
2010, about 400 food startups
have received more than $6
billion in funding, she said at
an industry conference on
Wednesday.
Campbell is joining a hand-
ful of big food-and-beverage
companies that are trying to
jump into the startup world.
Coca-Cola Co. and General
Mills Inc. have venture-capital
programs.
Campbell’s project, called
Acre Venture Partners LP, will
be run by an outside partner.
A Campbell subsidiary will be
the sole limited partner, and
Jeff Dunn, head of Campbell’s
fresh-food division, which in-
cludes Bolthouse Farms juices
and Garden Fresh salsa, will
be Campbell’s representative
on the investment committee.
In an interview, Ms. Morri-
son said Acre is a new model
for innovation to help the 145-
year-old soup-and-snacks com-
pany keep pace with what she
calls a seismic shift taking
place in the food industry. U.S.
dios are backing one movie-
ticketing company and two are
backing another—but both
companies have to work with
every studio in Hollywood.
“We don’t view this as hav-
ing anything to do with stu-
dios coming together,” said
Warner Chief Digital Officer
Thomas Gewecke. “It’s about
the products.”
Atom, which is operating in
three test markets and plans to
expand nationwide by the sum-
mer, has focused on making it
easier for friends and family to
plan movie outings together.
Mr. Yanover said Fandango is
working on its own approach to
social movie planning that will
launch later this year.
with ABC in the midst of de-
veloping shows for next sea-
son, these people said.
Mr. Sherwood second-
guessed Mr. Lee on program-
ming strategy, and the lack of
a working relationship be-
tween the two extended out-
side of ABC and into the Holly-
wood community. Talent
agents and production execu-
tives complained about having
to take separate meetings with
Mr. Sherwood and Mr. Lee to
discuss projects, a person with
knowledge of the matter said.
In another sign of Mr. Sher-
wood’s desire to have a strong
say in ABC’s creative opera-
tions, Patrick Moran, head of
ABC Studios, will now report
directly to him instead of Ms.
Dungey. Previously, Mr. Moran
had reported to Mr. Lee.
ABC declined to comment
beyond its statements about
the changes. Mr. Lee did not
respond to a request seeking
comment.
food makers are under pres-
sure to come out with new
products faster in light of the
quickly changing eating habits
of consumers.
Ms. Morrison said e-com-
merce and the increased avail-
ability of food manufacturing
lines have lowered the barrier
of entry for startups. Such
companies have largely re-
sponded faster to consumers’
demand for transparency as to
what is in the food, and other
trends like simpler and fresher
ingredients.
“There’s an easier infra-
structure that enables smaller
brands to get started,” she
said.
Acre could give Campbell
insight into startups that
would lead to an acquisition,
but Ms. Morrison said that
“we’re not going to buy every
company we invest in.” In re-
cent years, Campbell has ac-
quired Bolthouse Farms and
Garden Fresh Gourmet to give
it a foothold in the fresh-food
and deli section of the grocery
store.
General Mills announced in
October that its internal busi-
ness unit, 301 INC would be-
come an investor in emerging
food brands, teaming up with
them to create innovation.
That program introduced Gen-
eral Mills to a small meat
snacks company called Epic
Provisions that it bought last
month.
B4 | Thursday, February 18, 2016 * *** THE WALL STREET JOURNAL.

EARNINGS

T-Mobile Profit Jumps in Quarter Priceline

Hails Drop
Earnings nearly triple
as market share gains;
carrier sees slowdown
In Fuel
in subscriber growth Prices
BY THOMAS GRYTA BY LISA BEILFUSS
AND LISA BEILFUSS AND DREW FITZGERALD

T-Mobile US Inc. reported Priceline Group Inc. re-

strong fourth-quarter earn- ported a 12% rise in fourth-
ings gains as it continued to quarter profit and forecast a
grab market share in the strong spring travel season as
competitive wireless market. lower fuel prices work in favor
The Bellevue, Wash.-based of the booking site and its cus-
carrier forecast its main- tomers.
stream customer additions Chief Executive Darren Hus-
this year would be well below ton said airfare prices have
2015’s 4.5 million, though it fallen 15% on Priceline’s Kayak
traditionally has provided search site. “Oil prices are fi-
conservative guidance early nally translating” into lower
in the year. T-Mobile in Janu- travel costs, he said in an in-
ary disclosed much of its sub- terview, also noting that
scriber gains for the final cheaper gasoline means some
quarter of 2015. travelers have more money to
T-Mobile has been outper- spend. “It’s helpful, certainly
forming rivals through a com- in the short term.”
bination of aggressive mar- Priceline’s profit for the
keting and new products, year-end quarter was $504.3
including its recent free video million, up from $451.8 million
streaming platform. a year earlier. Revenue in-
Meanwhile, Sprint Corp. creased 8.7% to $2 billion,
has kept up the pressure by above the average analyst
recently extending a half- forecast of $1.96 billion on
price promotion. This week, Thomson Reuters.
AT&T Inc. began offering to The company, which is
pay switching fees, while Ver- based in Norwalk, Conn., has
MICHAEL NAGLE/BLOOMBERG NEWS

izon Communications Inc., historically relied on commis-

which already pays switching sions for most of its growth,
fees, started offering free especially from its Book-
data for some customers. ing.com brand. Nearly 90% of
T-Mobile shares were up gross bookings come from
40 cents at $36.85 at 4 p.m. abroad, a fact that has hurt its
in Nasdaq trading on Wednes- results as the U.S. dollar has
day and have risen about 18% strengthened; profits earned
in the past 52 weeks. in euros, for example, now
The company said it con- T-Mobile picked up 4.5 million mainstream customers in 2015, but the wireless carrier said it doesn’t expect to land as many this year. translate into fewer dollars
tinues to talk with Alphabet than they did a year earlier.
Inc.’s YouTube about getting a small amount of collabora- “certainly wouldn’t count on” from $101 million a year ear- to $6.56 billion, while equip- Priceline said international
the video service included in tion.” He declined to provide its majority owner Deutsche lier. Revenue rose 1.1% to ment revenue fell 30% to gross bookings jumped 16%
T-Mobile’s free video-stream- a timeline. Telekom AG to provide addi- $8.25 billion. $1.54 billion because of an in- from a year earlier despite the
ing service. YouTube had The next major develop- tional funding. T-Mobile reported 1.3 mil- crease in leasing devices, impact of the dollar, which
complained about the car- ment for T-Mobile will be its He also noted that govern- lion mainstream net customer which results in revenue be- also makes it more expensive
rier’s program because it re- participation in the govern- ment rules around the auc- additions in its latest period ing recognized over the lease for foreign travelers to come
duces the quality of all video. ment’s coming airwave auc- tion prevent merger talks for a total of 4.5 million for period rather than when the to the U.S. That increase
T-Mobile has argued that the tion. The company cited col- with participants, which in- the year. It added 917,000 customer takes possession. helped offset a 7.6% decline in
feature is optional for cus- lusion restrictions for not cludes Comcast Corp., along mainstream phone connec- For 2016, T-Mobile expects domestic bookings and re-
tomers who can turn it off. commenting on the process, with all the national wireless tions. In the same period, Ve- between $9.1 billion and $9.7 sulted in overall bookings ris-
On Wednesday, Chief Oper- but pointed to previous state- carriers like Verizon and rizon added 449,000 of such billion in adjusted Ebitda, or ing 13% in the fourth quarter.
ating Officer Mike Sievert ments that it could spend up AT&T even if they aren’t join- phones, while Sprint added earnings before interest, Looking ahead, Mr. Huston
said he was “optimistic” to $10 billion. ing the auction. 366,000 and AT&T lost taxes, depreciation and amor- said European travelers were
about getting YouTube in- Chief Financial Officer Overall, T-Mobile reported 256,000. tization, this year, up from becoming more comfortable
cluded, a move that “requires Braxton Carter said T-Mobile a profit of $297 million, up Service revenue rose 12% $7.39 billion in 2015. with traveling to the U.S. de-
spite the higher cost. Priceline
also laid out plans to take ex-

JAPAN Stalling
Currency-driven profit growth
has faded for Japanese
pared with a year earlier, it had
strengthened against the euro
and emerging-markets curren-
cies.
and lower tax payments.
While Japanese manufactur-
ers saw earnings decline 27%
last quarter, nonmanufacturers
costs, though weakness in the
currency supports inbound
tourism and inflates the value
in yen of overseas profits.
tend its OpenTable restaurant
reservation service interna-
tionally.
Smaller rival Expedia Inc.
Continued from page B1 companies.* “For a global business like reported profit growth of 31%, The expected hit to Japanese cited “huge headwinds from
makers and manufacturers of ours, weaker emerging-market according to SMBC Nikko Secu- firms’ overall profits is seen foreign currencies” when it re-
precision equipment falls by Profit growth, change from currencies pose a major nega- rities. The retail sector re- weighing on stock prices. No- ported its fourth-quarter re-
more than 1%, according to cal- previous year tive impact on our business,” ported a gain of 50% for the mura Securities this week low- sults, though it has also
culations by Mitsubishi UFJ 120% Tetsuya Otake, a Toyota man- quarter, while the construction ered its end-2016 target range pointed to improving travel
Morgan Stanley. aging officer, said during an sector saw earnings jump 43%, for the Nikkei Stock Average to trends.
For exporters such as Toy- 100 earnings news conference ear- it said. 19,000-22,000, down from Priceline expects revenue
ota Motor Corp., a strong yen 80
lier this month. Net profit at department- 22,500-23,500, citing worsen- for the current quarter to rise
erodes earnings repatriated to Every time the dollar store operator Isetan Mitsuko- ing earnings in the near-term. by 9% to 16%, bracketing ana-
Japan and makes its goods less 60 strengthens by one yen, Toy- shi Holdings Ltd. jumped 33% It also predicted that falling lysts’ expectations. It also
competitive overseas. ota’s annual operating profit in- to ¥24 billion during the nine stock prices will lead Mr. Abe’s projects a 12%-to-19% increase
40
Yen-driven gains are fading creases by roughly ¥40 billion, months through December, government to again delay an- in total bookings for the quar-
at the auto maker, which has 20 0.2% said Mr. Otake, who also cited thanks to a record-setting other rise in the sales tax, ter, or 18% to 25% when for-
enjoyed nearly three years of slowdowns in developing na- boom in foreign tourists. scheduled for next year. eign-exchange effects are
record profit primarily because 0 tions as possibly limiting Of course, a stronger cur- Still, Nomura projected rela- stripped out.
of a weaker currency. –20 growth. rency is good for some compa- tively solid profits for Japanese The booking site’s shares
The Japanese currency 2013 ’14 ’15 Toyota’s third-quarter net nies. For Japan’s two major air companies overall, and for the rose $124.88, or 11.3%, to
barely raised profit at Toyota profit still grew 4.7% from a carriers, ANA Holdings Inc. and yen to fall back in the latter $1,235.56 on Wednesday,
*Covers Japanese companies on the first
during the October-December section of the Tokyo Stock Exchange year earlier to ¥628 billion Japan Airlines Co. Ltd., half of the year. marking the first $100 single-
quarter. Although the yen was Source: SMBC Nikko Securities ($5.5 billion), beating esti- strength in the yen means —Yoko Kubota session gain ever for a mem-
weaker against the dollar com- THE WALL STREET JOURNAL. mates. Mr. Otake cited cost cuts lower fuel prices and operating contributed to this article. ber of the S&P 500.

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Strong Dollar Weighs on Prada
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. * * Thursday, February 18, 2016 | B5

TECHNOLOGY @wsjd | wsjd.com

Marvell in Settlement
With Carnegie Mellon
BY DON CLARK
Marvell Technology Group
Ltd. has agreed to pay Carne-
gie Mellon University $750
lated computer disk drives.
In August of 2015, Marvell
persuaded a federal appeals
court to reverse most of that
award, but the court affirmed

QUANTRELL D. COLBERT/UNIVERSAL PICTURES/ASSOCIATED PRESS

million to settle a closely
watched patent dispute.
The agreement removes a
long-standing cloud over the
Silicon Valley semiconductor
maker, which has also been
grappling with a board probe
of its accounting as well as in-
quiries by the Securities and
Exchange Commission and U.S.
attorney’s office.
Marvell’s stock jumped 6%
in after-hours trading follow-
ing the announcement.
Carnegie Mellon first sued
the company for infringing its
patents in 2009. Marvell was
found guilty in December 2012
by a federal jury, which set
that Marvell had infringed the
two patents at issue.
The settlement announced
Wednesday resolves all pend-
ing appeals.
Marvell added that its cash
and short-term investments
exceeded $2.3 billion. Marvell
previously had recorded about
$388 million for litigation re-
serves in fiscal 2016 related to
Carnegie Mellon.
Subra Suresh, the univer-
sity’s president, said a sub-
stantial share of the settle-
ment’s proceeds will go to
José Moura and Aleksandar
Kavcic, inventors of technol- The Perfect World-Universal deal begins with this year’s Universal releases, the first of which was buddy comedy ‘Ride Along 2.’
ogy at issue in the case. After

Chinese Firm Teams Up With Universal

$1.17 billion in damages.
A federal judge increased
the award to $1.54 billion, re-
flecting an extension of the
period covered by the award
and a finding that Marvell
willfully infringed patents re-
those payments, the university
will receive about $250 mil-
lion, he said.
A committee has been es-
tablished to help the univer- Perfect World will vesting $250 million for equity and it is aiming to expand its American movie companies.
sity decide how to use the in the deal and expects to raise movie business by focusing on Universal President Jimmy
funds to aid students. cover 25% of most about $200 million in debt, the global market. Horowitz said the studio
production budgets said Rong Chen, its president. “Working with a company hopes the partnership will
So-called slate deals, in like Universal will help us ele- help it to expand its business

INGRAM
Continued from page B1
cited, among other factors,
risks that the deal would be
rejected by U.S. authorities
on national-security grounds.
Royal Philips NV in Janu-
ary terminated the planned
$2.8 billion sale of most of
its lighting components and
automotive-lighting unit to a
Chinese investor, after the
U.S. Committee on Foreign
Investment blocked the deal
on national-security grounds.
Many technology compa-
nies use Ingram to run their
supply chains. Ingram, a
longtime wholesaler of com-
puter components and pe-
ripherals, launched a third-
party logistics unit in 2000.
The U.S. company has
completed many acquisitions
over the years, like such as
deal for e-commerce fulfill-
ment company Shipwire. It
launched a cloud-computing-
services portfolio in 2007.
For the nine months ended
Oct. 3, Ingram posted sales of
$31.7 billion. In late October,
it projected fourth-quarter
sales of $12 billion to $12.6
billion.
Along with the deal, In-
gram Micro is suspending its
quarterly dividend payment
and its share-repurchase pro-
gram. Ingram’s management
team will stay in place, in-
cluding Mr. Monié, and the
company will remain in Ir-
vine, Calif.
The boards of both compa-
nies have approved the trans-
action, which is expected to
close in the second half of
the year.
over next five years
BY BEN FRITZ
One of China’s largest vid-
eogame companies is investing
$250 million with one of Hol-
lywood’s biggest studios to
help launch its global film
business.
Perfect World Pictures has
signed a deal with Comcast
Corp.’s Universal Pictures to
cover 25% of the production
budgets of most movies made
by the studio over the next
five years.
The agreement begins with
this year’s Universal releases.
Perfect World Pictures is in
the process of merging with
its former corporate sibling,
mobile and online gaming
company Perfect World, so
that both can be listed on the
Shenzhen stock exchange.
The Chinese company is in-
which an outside company
covers a portion of the bud-
gets of most or all films at a
studio, are commonly used in
Hollywood as a way to reduce
risk and help even out results
in the unpredictable movie
business.
It is a new trend, however,
for Chinese companies to be a
source of capital. Lions Gate
Entertainment Corp. last year
signed a similar deal with Hu-
nan TV & Broadcast Intermedi-
ary Co. to co-finance many of
its movies. Dalian Wanda
Group Co. recently agreed to
spend $3.5 billion to fully ac-
quire Legendary Entertain-
ment, an independent movie
company that also has a part-
nership with Universal.
Perfect World Pictures sees
the Universal deal largely as a
means to an end. Mr. Chen
said 80% of the company’s rev-
enue currently comes from TV,
vate our skill set in moviemak-
ing, marketing, distribution
and on the financial side,” Mr.
Chen said in an interview.
The Chinese company is
putting together a team of em-
ployees in Los Angeles who
will consult with Universal
and, by later this year, start
developing their own slate of
movies. Perfect World plans to
invest in English-language
films aimed at global release,
though its knowledge of the
Chinese market could give it
an advantage in producing pic-
tures that will be successful
there.
Mr. Chen said Perfect World
will eventually look to make
movies based on the com-
pany’s mobile games, and vice
versa, as well as work with
Universal’s theme-parks divi-
sion to expand into that busi-
ness. He also said he is open to
pursuing deals with other
in China.
China’s box-office receipts
grew 49% last year to $6.78
billion and will likely surpass
those of the U.S. to become
No. 1 in the world within a few
years. Local companies are
looking to take a bigger share
of that business—a priority for
the government—but due to a
lack of experience, many are
seeking partnerships in Holly-
wood to upgrade their skills.
Universal is coming off the
strongest year in industry his-
tory, having grossed a total of
$6.9 billion globally thanks to
such blockbuster hits as “Ju-
rassic World,” “Furious 7” and
“Minions.”
The Perfect World partner-
ship excludes animated movies
from Universal’s Illumination
Entertainment unit—responsi-
ble for the “Despicable Me”
films among others—and very
low-budget movies.

THE SHORT ANSWER by Willa Plank and Erik Brynildsen

What company is winning the market cap race?
Looking at major U.S. exchanges, Apple still remains at the top by market
capitalization. Alphabet, owner of Google, briefly surpassed Apple on Feb. 2, the day
after Alphabet’s earnings announcement. The top five U.S. listed companies by
market cap at the end of 2015 were Apple, Alphabet, Microsoft, Berkshire Hathaway
and Exxon Mobil. Tracking those companies since the end of last year:
$600 billion
Market capitalization

Wednesday
550
Apple
$544B
500
Alphabet
$495B
450

Microsoft
400 $415B

350 Exxon Mobil

$341B
Berkshire
Hathaway
300 $321B
Jan. Feb.

2013 2014 2015

Top five companies 1 Apple Apple Apple
by market cap on
major U.S. 2 Exxon Mobil Exxon Mobil Alphabet
exchanges at the 3 Alphabet Microsoft Microsoft
end of each year
(Only includes currently 4 Microsoft Berkshire Hathaway Berkshire Hathaway
traded companies)
5 Berkshire Hathaway Alphabet Exxon Mobil

Alphabet recently reported strong growth in its core Google business,

while Apple reported slowing sales growth for the iPhone.
Alphabet quarterly operating income/loss, Apple’s major product unit sales,
by segment† change from a year earlier
$10 billion 50%
4Q 2015 1Q 2016*
40
8
Google
$8B 30
6
20 iPhone
74.8M
4 10
▲0.4%
0
2 Other Bets Mac
–$1.1B –10 5.3M
0 (Includes ▼3.8%
driverless cars, –20
smart homes, iPad
–2 health care) –30 16.1M
2014 ’15 Fiscal 2014 ’15 ’16 ▼24.7%
*Ended Dec. 26, 2015 †Excludes stock-based compensation, administrative costs and other miscellaneous items
Sources: FactSet (market cap); the companies (Apple unit sales; Alphabet financials) THE WALL STREET JOURNAL.
B6 | Thursday, February 18, 2016 THE WALL STREET JOURNAL.

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FOCUS ON FRANCHISE: FINANCE
Issue Date: March 24 | Close Date: March 17

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 Erdos & Morgan, Purchase Influence in American Business, 2014 & 2014 IPSOS AFFLUENT STUDY, HHI
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THE WALL STREET JOURNAL. Thursday, February 18, 2016 | B7

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Thursday, February 18, 2016 * * THE WALL STREET JOURNAL.

BUSINESS NEWS

LNG Williams
Continued from page B1
vested in what people familiar
Posts Big
with the suit say was his
friend’s firm.
Cheniere, the first company
Write-Down
to secure government permits BY TESS STYNES
to export U.S. gas, was initially
founded to import LNG to the Williams Cos. swung to an
U.S., but reinvented itself as an unexpected fourth-quarter loss
exporter after a boom in shale- as the pipeline giant posted a
gas output. It hasn’t turned an big write-down, mostly related
annual profit in its 20 years in to low commodities prices and
business and has become a weaker market values for affil-
proxy for a larger LNG debate. iate Williams Partners LP and
Two high-profile investors its peers.
have taken opposite positions The Tulsa, Okla., company
in the stock. Last August, Carl also said the write-downs re-
Icahn disclosed a stake in Che- flected Williams’ 2014 acquisi-
niere and won two board tion of Access Midstream
seats. He currently owns 13.8% Partners.
of the company. At about the Shares of the Tulsa, Okla.,
same time, James Chanos of company, which have skidded
Kynikos Associates LP began to 68% in the past 12 months, fell
bet against Cheniere’s stock by 2% in after-hours trading as
shorting it, convinced the LNG per-share earnings, excluding
F. CARTER SMITH/BLOOMBERG NEWS

glut is here to stay. certain one-time items, missed

“Much like iron ore and expectations.
some of the other [resource] Williams is being acquired
debacles of the last several by Energy Transfer Equity
years, everybody came to the LP in a $32.6 billion deal
same conclusion at the same reached in September. The
point and began building ca- September deal price was be-
pacity,” Mr. Chanos said in an low Energy Transfer’s $48
interview. “This is going to be billion offer that Williams had
a tough business for the next Cheniere’s sprawling export terminal at Sabine Pass, La., was built on ground so squishy construction crews mixed cement into the soil. rejected in June.
five, six or seven years,” he Many pipeline companies
said. those are going to get built,” BG Group PLC. Parallax in- for maintenance of facilities built under long-term con- had said they were mostly in-
Representatives for Mr. said Kenneth Medlock, author formed Cheniere that it “was located in a marshy wetland. tracts. Cheniere plans to build sulated from low energy
Icahn didn’t respond to re- of a recent U.S. government unable to satisfy current pay- Cheniere’s sprawling export a total of at least five trains at prices because most of their
quests for comment. study on the market impacts ment obligations,” according terminal at Sabine Pass, a two- that flagship plant. revenue is based on fixed
Demand from Asian mar- of LNG exports. to the complaint. Parallax hour drive from its Houston The company expects to fees. However, in recent quar-
kets, which make up 70% of LNG spot prices in Asia didn’t respond to requests for headquarters, was built on spend nearly $18 billion at Sa- ters, signs that the pipeline
the global market, has stag- have to dropped less than $7 comment. ground so squishy construc- bine Pass and another $16 bil- industry isn’t immune to the
nated and LNG exports to per million British thermal Cheniere insulated itself tion crews mixed cement into lion on a Corpus Christi plant, commodities rout has
China fell in 2015 for the first units. As recently as December, from a downturn in LNG prices the soil and drove steel-rein- where construction of the first slammed the sector’s stocks
time ever, according to Wood Cheniere assumed a healthy by signing long-term contracts two trains—out of a possible and added to concerns about

50%
Mackenzie. margin of at least $3.25 per with energy giants such as BG five—began last May. whether the Williams-Energy
The world’s appetite for million Btu from Asia-bound Group—which has been ac- Under Mr. Souki’s vision, Transfer deal would close.
North American LNG will be sales, but its latest outlook re- quired by Royal Dutch Shell these facilities would allow Williams said its board is
limited to about 6.5 billion cu- leased last month trims that PLC—and Total SA of France. Drop in LNG prices over the Cheniere to ship 10% of cur- unanimously committed to
bic feet a day in the next eight margin to $2 per million Btu. Both committed to 20-year ob- past year in Asia, the world’s rent U.S. gas production the completion of the merger.
years, according to analyses by In a sign of a possible cash ligations which pay out guar- largest market for LNG. abroad. The company envi- Over all, Williams reported
Canadian bank CIBC and the flow squeeze, Cheniere last anteed annual fees for process- sioned up to 11 trains from a loss of $701 million, or 94
U.S. Department of Energy. month refinanced up to $2.8 ing gas, regardless of the these plus two other yet-to-be- cents a share, compared with
Cheniere has regulatory ap- billion in debt to delay maturi- amount of LNG they actually forced concrete pilings 95 feet built Gulf Coast plants by a profit of $193 million, or 26
proval for nearly all of that ties until 2020, according to a take delivery of. Cheniere ex- underground. From this stabi- 2025. cents a share, a year earlier.
volume—6.3 billion cubic feet person familiar with the deal. pects to get its first payment lized surface arose an indus- Cheniere’s new manage- The latest period included pre-
a day—from a pair of export Earlier this month Cheniere from BG this year for $520 trial jungle with giant racks of ment appears to have shelved tax write-downs totaling $2.1
terminals. filed a lawsuit in Houston million. pipes to chill the gas and 140- those expansion proposals, billion. Excluding such one-
That suggests trouble for seeking to recover $46 million Critics note that Cheniere’s foot-tall tanks to store it. which it had planned to jointly time items, adjusted earnings
dozens of other LNG projects— lent to a liquefaction company other contracted buyers aren’t Nearly 90% of the process- develop with Parallax before from continuing operations
from Maryland to Oregon—un- called Parallax Energy LLC. blue-chip firms, and that its ing capacity of the first pair of the lawsuit, by scrubbing any were flat at a penny a share.
der construction or on the Parallax was created by Martin profit margins may be eroded refrigeration units, known as mention of them from its lat- Revenue decreased 6.3% to
drawing boards. “Not all of Houston, a former executive at by higher-than-expected costs trains, at Sabine Pass are being est presentation materials. $2.01 billion.

In
$1 oduchtoorcyking
tr S

7 95 ea
Pr
ice
!
ch

Actual size
is 40.6 mm

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THE WALL STREET JOURNAL. Thursday, February 18, 2016 | B9

BUSINESS NEWS

India Embraces Miniature SUVs Aston in

Ultrasmall sport-
Electric Car
utilities, some with
three-cylinder engines,
Joint Deal
BY WILLIAM WILKES
are becoming big sellers AND MIKE RAMSEY

BY ERIC BELLMAN FRANKFURT—Aston Mar-

AND SANTANU CHOUDHURY tin Lagonda Ltd. is creating a
joint venture with Chinese
NEW DELHI—Around the partner LeEco to help bring
world, small sport-utility vehi- its first electric car to market
cles are replacing sedans in in 2018, a move that creates
consumers’ hearts, but no an informal affiliation with
where is the trend as popular Los Angeles-based electric car
or extreme as India, where car startup Faraday Future Inc.
makers are introducing mini- LeEco, formerly called Letv,
SUVs. is a primary backer of Faraday,
PRASHANTH VISHWANATHAN/BLOOMBERG NEWS

Built on frames typically a company with about 500

used for subcompacts and employees planning to build a
powered by small engines, the factory in the U.S. and sell
mini-SUVs provide a taller, electric cars in 2017. While As-
bulkier and more macho pro- ton Martin, a storied British
file to appeal to the growing brand, shares the same backer,
number of middle-class driv- it emphasized that is not cur-
ers battling traffic on the rently working with Faraday.
country’s crowded roads. However, it said in a state-
Last week, Indian auto ment that all three companies
maker Mahindra & Mahindra may work together in the fu-
Ltd. showed off one of the lat- ture.
est examples of this new Attendees looked at the Mahindra & Mahindra KUV100 SUV at the Auto Expo 2016 in Noida, Uttar Pradesh, India, on Feb. 4. Aston Martin, the sports
breed, the Mahindra KUV100, car brand closely linked with
with a glowering front end mini-SUV, the HND-14 Carlino, wheel base, high roof, square the fictional British superspy
and a shape the company’s Compacts Climbing this month. The company said front grill and roof rails, said James Bond, unveiled an elec-
marketers say is “sculpted to Sales of small SUVs are surging in India. it wants to get it on Indian Kripa Ananthan, the com- tric prototype version of its
dominate.” (The K stands for roads as soon as possible. pany’s chief designer. Rapide S car in October 2015,
kool, the company says.) Small SUV sales 2015 sales by model “We see a very strong mar- Stuffing all that SUV styling the RapidE. The company
Drivers “are getting in a 150 thousand ket for compact SUVs,” said in a small car is no easy task. plans to build the car at its
small package the SUV feel,” Ford EcoSport 42,317 vehicles Koo Young-key, CEO of Hyun- “There is nothing quite like Gaydon factory in the U.K.
said Anand Mahindra, Mahin- 120 151,714 Hyundai Creta 40,888 dai’s India operations. this,” said Ms. Ananthan, LeEco is a China-based con-
dra’s chairman. He described Being shorter than 4 meters pointing to a KUV100 at the sumer electronics firm that of-
the new vehicles as “sachet- 90 Renault Duster 24,600 (a bit over 13 feet) is key in In- auto show. fers a variety of services, in-
sized,” a reference to con- dia because taxes on cars that The inside needs to feel cluding smartphones and a
60 Suzuki S-Cross 16,954
sumer-goods makers’ practice size are as much as 18 per- large as well, so Mahindra put video service similar to Net-
of selling shampoo and other Mahindra TUV300 15,132 centage points lower than for in high front seats and a shal- flix. Aston Martin already col-
products in small packets at 30 larger cars, potentially saving low dashboard. A small trunk laborates with LeEco on in-car
low prices. Nissan Terrano 10,669 buyers thousands of dollars. allowed more room for back entertainment systems for the
0
Hyundai Motor Co., Nissan Mahindra KUV100 1,154 With sticker prices that seats. There are compartments Rapide S, and the two compa-
Motor Co. and others also dis- 2012 ’13 ’14 ’15 start at around $6,500, the in the doors and under the nies are jointly developing
played miniature SUVs at In- Source: SIAM THE WALL STREET JOURNAL. small SUVs have found a sweet seats for storage. zero-emission technologies.
dia’s big biannual auto show spot for Indian consumers. Mahindra also put the gear- Yueting Jia, the founder of
this month. Maruti Suzuki In- About a dozen new ultrasmall idly as India, where they are “You want to look like the shift up on the dashboard to LeEco, a billionaire entrepre-
dia Ltd. pushed its new Vitara SUVs are expected to hit the now the fastest-growing part aggressor not the victim, allow a seat for a third person neur often likened to Elon
Brezza, which CEO Kenichi market over the next three of the market. given the kind of road behav- in the front. The end result is Musk, has made investments
Ayukawa called, “muscular, years, automotive analysts say. More than 150,000 were ior that you have in India,” the interior feels larger than in a number of electric-car
bold and sporty.” Some of the newer vehicles sold last year, up 60% from said Mr. Mahindra. “You are the car looks from the outside. ventures. In addition to Fara-
All are less than 13 feet long. look more like chubby hatch- the year before, according to not the little hatchback which Behind a KUV100 at Mahin- day, which intends to produce
Maruti’s KUV comes with a backs than SUVs. Demand for researcher Segment Y. IHS is going to be swallowed up in dra’s auto-show display, a sign and sell an electric car as soon
three-cylinder engine and is just small SUVs in China and the Automotive predicts the mar- one bite.” invited people to test their as 2017, LeEco has invested in
a hair over 12 feet. Its length is U.S. has been growing in re- ket will expand to 500,000 To make the Mahindra strength by jabbing a punch- Silicon Valley-based Atieva
about 3 feet shorter than a Toy- cent years, but few places are cars a year by 2018. KUV100 look more like an SUV, ing bag. “Are you tough to the Inc., which is designing an
ota RAV4 or Jeep Cherokee. embracing mini-SUVs as rap- Hyundai unveiled a concept Mahindra gave it a wider core?” a sign above asked. electric car.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
d t
Edmonton 10s 0s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 61 Some tip jar 29 “I couldn’t agree
20s fill more!”
0s 0s
V
Vancouver C garyy
Calgary 30s 14 15 16
40s 10s 62 Keyed in 30 Sporting
Seattle ip
Winnipeg 17 18 19 sneakers, say
30s 20s 63 Scale interval
Por
P
Portlandd 10s 30s 20 21 22 31 At the most
Helena 50s Montreal
Down
Bismarckk Ottawa 40s
g
Billings A g t
Augusta 23 24 25 26 27 32 Heist facilitator
g
Eugene 40s 1 Puts on the
Boise 30s T
Toronto 50s
P
Pierre
p / . Paul
pls
Mpls./St. A b y
Albany t
Boston 28 29 30 line 33 Knock out
50s 50s rtford
Hartford
20s 60s
Milwaukee k t
Detroit l
Buffalo 2 Open, in a way
ouxx FFalls
Sioux ll
Ch
Chic
Chicagog Clevel
Cleveland d New Yorkk
ew Y 70s 31 32 33 34 35 37 Respectably
Reno Salt
alt Lake
Lake
k C City
City es Moines
Des
Che
h y
Cheyenne 60s Phhil d lph
hi
Philadelphia 80s 3 Bloodcurdling wholesome
Sacramento 30s 50s 30s d p Pittsburgh
Pitts b g h 36 37 38
Denver Omaha h p g d Indianapolis
Spring
Springfield
Sann Francisco hington
gton D.C.
Washington DC 90s 4 Trickster of 38 Argentine
Colorad
Colorado Topek
Topeka k Kansas Ch l t
Charleston 39 40 41
30s p
Springs Cit
ty
City h
Richmond d 100+ African folk article
60s LLas hit
Wichita St.. Lou
LLouis Louisville
L
Lou ill
Ve
Vegas Nashville
h ill igh
Raleighh 42 43 44 tales 40 Triceps
Los A
Ange
Angeles Charlotte
C h l
70s Santaa FFe Memphis hi 50s CColumbia 45 46 47 48 49 5 Wall rattler connection
Ph i
Phoenix Alb q q
Albuquerque Oklaho
kl oma City
Oklahoma b
an Diego
San A
Atlantat Warm Rain
80s TTucson LLittlee Rockk
50 51 52 53 6 Syndicate 41 Monopoly
cson Birmingham
i h
Ft. Wor
Worth h D ll
Dallas Jack k
Jackson
60s Cold snitch collections
El P
Paso T-storms
80s 70s bil
Mobile 54 55 56 57
A
Austinti Jacksonville
J k ill 7 House work 43 Petco Park
-0s Houstont Stationary Snow players
l d
Orlando 58 59 60
0s an
Sann Antonio
A t i
Newew Orleans
Tampa
8 Seller of
10s 70s Showers Flurries 61 62 63 Ingatorp tables 44 Brought up
Honolulu
l
Miami
20s A Anchorage
h g
80s 70s 9 Guy Lafleur, 47 Happening
30s 40s Ice
THREEPEATS | By Dan Fisher in 1990
48 Not too bright
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W
Across 24 Wool source 45 Bride of July 10 Wear on
49 Moral authority
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Bungee jumper’s 1981 11 First aid pro
Omaha 65 47 pc 64 37 s Frankfurt 44 32 pc 43 33 sn 27 Answer from a 50 Comics
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice reward
Orlando 71 53 s 72 52 pc Geneva 47 34 pc 43 29 sn knocker 46 Octogenarian, 12 Charlotte, Chad character in a
Today Tomorrow Philadelphia 37 22 s 43 35 c Havana 78 62 s 77 61 s
City Hi Lo W Hi Lo W 5 Track runner in 1946 or Chelsea red and black
Phoenix 82 58 s 84 57 c Hong Kong 64 57 pc 68 56 pc 28 Sally Rand and
Anchorage 28 19 pc 29 21 s Pittsburgh 31 19 s 53 43 pc Istanbul 58 48 c 54 45 c Gypsy Rose Lee 47 Nabokov novel striped shirt
10 See 54-Across 13 Cleat setting
Atlanta 60 39 s 64 47 s Portland, Maine 35 12 pc 35 27 pc Jakarta 87 75 t 88 76 pc set on Antiterra
Austin 78 55 pc 78 56 c Portland, Ore. 53 45 sh 52 40 r Jerusalem 72 58 pc 73 51 s 31 Traffic problem 51 Award depicting
14 Victim of Pizarro 18 Advantage
Baltimore 38 20 s 42 34 pc Sacramento 61 45 c 61 42 r Johannesburg 82 60 t 85 62 t 50 Jewelry store a pair of masks
Boise 52 40 c 55 34 c St. Louis 58 52 pc 72 47 s London 44 30 r 48 45 sh 15 Put-your-cards- 34 Kvelling, say purchase 22 Drywall holder
Boston 34 21 pc 38 30 pc Salt Lake City 54 34 sh 53 35 pc Madrid 48 29 sh 51 29 s 53 Long to see
in-order game 35 Dit’s
Burlington 21 6 pc 36 31 c San Francisco 62 51 sh 61 48 r Manila 88 76 s 88 76 s 52 It’s paid on 25 Wool source
counterpart 56 High muck-a-
Charlotte 53 30 s 55 42 s Santa Fe 70 37 s 66 35 pc Melbourne 75 58 sh 74 57 c 16 “Symphonie receiving bills
Chicago 40 37 c 56 39 pc Seattle 52 44 c 50 40 r Mexico City 75 39 s 77 40 s 26 Least muck
Espagnole” 36 Just
Cleveland 34 27 pc 53 44 c Sioux Falls 46 40 pc 54 31 s Milan 52 34 pc 54 32 c
composer 54 With 10-Across, long-winded
Dallas 75 59 s 78 60 c Wash., D.C. 40 25 s 43 38 pc Moscow 26 14 s 28 21 c 57 Bastille Day
37 Social stratum star of ABC’s 28 Join the bulls season
Denver 72 38 s 62 35 s Mumbai 88 70 pc 86 70 pc 17 A that’s earned “Resurrection”
Detroit
Honolulu
32 29 pc 53 40 sh
81 71 pc 81 68 pc
International Paris
Rio de Janeiro
41
88
30 sh
75 t
46 38 pc
90 77 c by cheating 38 Premiere sight
Previous Puzzle’s Solution
Today Tomorrow 55 Devo’s
Houston 77 60 s 79 61 c Riyadh 74 46 s 77 51 s 19 Disappearing 39 It’s shaped like
Indianapolis 43 37 pc 63 43 pc City Hi Lo W Hi Lo W Rome 60 43 s 59 45 pc
“Satisfaction” A L A S S H AM J A P A N
T E C H H O L E E D U C E
Kansas City 70 54 s 71 42 s Amsterdam 39 31 c 45 38 pc San Juan 84 71 sh 82 72 sh sea a trident and Oasis’s “I Am O A H I U O WA E D G E D
Las Vegas 69 47 sh 74 47 pc Athens 69 56 pc 69 52 s Seoul 47 23 pc 42 21 pc
20 1980s teammate 40 Tagamet target the Walrus,” e.g. A N T R E E A D A P T
S T U
S K Y Y G L O B A L
Little Rock 71 51 s 70 57 pc Bangkok 94 73 s 96 76 pc Shanghai 59 39 s 57 39 sh T O N
I T E S I R I E C O
Los Angeles 67 47 pc 67 47 s Beijing 46 27 s 43 23 pc Singapore 90 80 pc 88 79 pc of Magic 58 Boarding site
41 Was dashing G
O A D B L A B L AW
Miami 75 64 s 74 65 pc Berlin 41 29 c 41 31 c Sydney 80 69 s 86 73 s VW U G B M E L E L L I S
21 It’s measured in 59 Bond I N A
E P I C C R A B
Milwaukee 37 36 c 51 39 c Brussels 40 32 c 44 38 pc Taipei 67 60 r 70 55 pc 42 Watching a
Minneapolis 42 38 c 51 35 c Buenos Aires 90 72 pc 82 58 r Tokyo 51 41 pc 61 46 s column inches E B B
D E A L A T H OM E
sunset, sleeping 60 Nothing to write D A Y
L I T O P R Y T A X
Nashville 58 45 s 66 54 pc Calgary 52 35 r 50 34 s Toronto 25 16 pc 43 38 c
New Orleans 70 54 s 76 57 s Dubai 75 61 pc 76 60 s Vancouver 50 41 sh 50 38 r
23 Plant, perhaps in, etc. home about O V E
C O R G I
R S E
H I R
E
E
S
T
T O P
O R E
New York City 36 24 s 40 37 pc Dublin 44 34 s 49 43 sh Warsaw 50 38 sh 44 35 r O R I O N O N O R E M I R
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 77 57 s 76 54 pc Edinburgh 42 33 s 46 38 sh Zurich 45 32 pc 41 28 sn P R O N G S G T S P S S T

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B10 | Thursday, February 18, 2016 THE WALL STREET JOURNAL.

Switch to AT&T
and get an iPhone for free.
*

Buy an iPhone and get another one free

when you add a second line
and buy both on AT&T NextSM w/qual. svc. (min. $70/mo.). iPhone 6s 16GB is free
after $650 in 30 monthly bill credits. (Credits start w/in 3 bill cycles.) Tax due at sale.

*Free req’s new line on AT&T NextSM 24 w/30-mo. 0% APR agmt (up to $21.67/mo.). Pay up to $65.01 on free device before credits start.
Req’s well-qual. credit. If svc. cancelled on one, that device balance (up to $950) is due. $15 activ./upgrade fee.

1.866.MOBILITY | att.com/iPhoneOffer | Visita Store

BOGO: Limited time (ends 3/31/16 in Puerto Rico). Void in CT, RI, Miami-Dade. Devices: Select devices only. BOGO devices must be from same manufacturer. After bill credits, get select smartphones for free or can apply toward other elig. smartphone. Must buy on
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Credit approval, taxes, fees, overage, monthly, other charges, usage, coverage & other restr’s per line apply. Pricing, terms & restr’s subject to change & may be modified or terminated at any time without notice. You get an off-net (roaming) usage allowance for
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FEDERAL RESERVE C2 | MARKETS DIGEST C5 | BIGGEST 1,000 STOCKS C7

Raid in Spain Iran’s Pledge

Boosts Oil

AFP/GETTY IMAGES
Probe falls squarely on China bank ICBC FINANCE | C3 IN THE MARKETS | C4

© 2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Thursday, February 18, 2016 | C1
DJIA 16453.83 À 257.42 1.59% S&P 1926.82 À 1.65% NASDAQ 4534.06 À 2.21% 10–YR. TREAS. g 12/32, yield 1.819% OIL $30.66 À $1.62 EURO $1.1130 YEN 114.10 See more at WSJMarkets.com

Bank Breakups: Not So Fast

Break up the big banks? That role should fall to greater than its net worth makes them perfectly safe.
The Big Get Bigger
J.P. Morgan
Bank of America
Wells Fargo
Big 4 total assets:
$5.18 trillion
44% of total
Big 4 total assets:
$8.01 trillion
51% of total
The market long ago ratified shareholders. The problem: was September 2008. In that, Mr. Kashkari’s Citigroup 2015
the new position of Minne- So far, investors show no By keeping them at a de- speech Tuesday calling for 2006
apolis Fed- sign of having the power to pressed level for so long, in- big-bank breakups missed
eral Reserve upend the likes of Citigroup vestors are saying that they the point. It isn’t a case of $2.35
$1.35
President Inc. or Bank of America think the banks are worth either breaking up all big
Neel Kash- Corp. That needs to change. more dead than alive. In that banks or turning them all Others
kari: yes! The numbers speak for case, breaking them up could into utilities. Rather, it is $1.47 $2.14
Others $7.79
But at this themselves: Shares of the create value. about giving them and their $6.68 trillion
$0.48
HEARD ON point in the six biggest U.S. banks are But that isn’t necessarily shareholders a clear choice trillion
49% of total
THE STREET postfinan- down 10% to 25% this an endorsement of the idea between the two. 56% of total
$1.79
DAVID cial-crisis year. More important, of the all big banks should be bro- Start with size, a simplis- $1.88
REILLY era, with six, only Wells Fargo & Co. ken up simply because of tic and arbitrary measure:
$1.73
banks far trades at a price that is more their size, or that the postfi- True, the biggest banks have
TOTAL
safer than than its book value, or its nancial-crisis regulatory sys- Please see BANKS page C2
BANK
they have been in years, the net worth. In fact, the last tem isn’t working. The real- ASSETS $11.9 trillion $15.8 trillion
government shouldn’t be the time Citigroup or Bank of ity is that there is no perfect  Fed’s Kashkari: ‘Start with
lever that pries them apart. America traded at a price size for banks, nothing that real transformation’ .............. C2 Sources: the companies; Federal Deposit Insurance Corp. THE WALL STREET JOURNAL.

Joltin’ Joe Stocks Surge for

Exchange-rate fluctuations have perked up coffee
exports from Brazil, where a weaker currency has
driven up local prices, while cooling them in Vietnam,
where the foreign-exchange effects have been less.
Third Day in a Row
Change in futures prices, in local-currency * BY SAUMYA VAISHAMPAYAN ability to withstand turmoil
40% overseas.
U.S. stocks completed their A handful of upbeat U.S.
30 first three-day rally this year, corporate earnings and rum-
rebounding from multiyear blings of a cap on oil produc-
In Brazilian reais lows as some of the anxiety tion also boosted sentiment.
20
that plagued markets for “The market was deeply
10 weeks eased. oversold and sentiment was
The change in sentiment really negative,” said Kelly
0 sparked re- Bogdanov, portfolio analyst at
WEDNESDAY’S bounds in RBC Wealth Management. “Of-
–10 MARKETS shares of ten, when that happens…you
In Vietnamese dong companies end up getting a bounce.”
–20 whose for- The Dow Jones Industrial
tunes are closely tied to shifts Average gained 257.42 points,
–30 in the U.S. economy, from or 1.6%, to 16453.83. It was the
banks to railroads. Those first time ever that it has
–40 stocks have been hammered surged more than 200 points
2014 2015 2016 this year amid fears about the for three sessions in a row.
financial system and the U.S.’s Please see STOCKS page C4
*Robusta beans, front-month, Intercontinental Exchange,
dollars per metric ton
Source: Thomson Reuters THE WALL STREET JOURNAL.

Can ECB Lower Its

Rates Even Further?
BY TOM FAIRLESS sending the message that they
aren’t swayed by such con-
FRANKFURT—The battering cerns when reconsidering
of European financial stocks is their €1.5 trillion ($1.67 tril-

Strong Dollar Skews Coffee Trade

putting heat on the European lion) in stimulus measures at
Central Bank not to cut sub- the next policy-setting meet-
zero interest rates even lower ing on March 10.
next month, but its policy Negative rates amount to
less profitable in the dollar- ing to rewrite international price of robusta, the lower- makers said they are consider- charging a fee on deposits,
By Katherine Dunn pegged local currency, the commodities trade, from wheat quality beans that go into in- ing a further reduction. rather than paying interest. By
in London, dong. Mr. Mlo’s wife wants him to coffee, adding to oversupply stant coffee, by encourag- Shares of European banks charging banks to deposit
Vu Trong Khanh in Hanoi to move into other crops. in markets like copper and put- ing extra supply from those on and insurers have tumbled re- funds, the ECB hopes to spur
and Jeffrey T. Lewis In Brazil, João Elvidio Galim- ting further pressure on other the right side of the dollar’s cently, falling more than them to lend more aggres-
in São Paulo berti is planting more coffee resources, like oil, by making it rise and an overhang from broadly slumping markets. Fi- sively and bolster the euro-
because the steep fall of the more expensive for many buy- those that aren’t. nancial firms have been hit in zone’s sluggish economy.
Vietnamese farmer Y Kua real against the dollar means ers. This could have a long-term part because negative interest ECB President Mario Draghi
Mlo is storing coffee in his bed- the Brazilian crop fetches more. In coffee, the dollar-created impact on coffee production, rates erode profits. Fears of told European lawmakers on
room, unwilling to sell as the The strong dollar is picking imbalance between the world’s encouraging Brazilian farmers more rate cuts have worsened Monday that the bank won't
strong dollar makes this green- winners and losers in commod- biggest producers, Vietnam to grow more beans even as it the rout, investors said. hesitate to use all its policy
back-denominated commodity ity markets. This trend is help- and Brazil, is pressuring the Please see COFFEE page C2 But ECB policy makers are Please see ECB page C2

Wal-Mart Is Feeling Boxed In Online Lender to Charge More

BY TELIS DEMOS its loans Monday that it was than competing bank services
BY STEVEN RUSSOLILLO billion to improve e- AND PETER RUDEGEAIR raising its rates by on average like credit cards. Unlike some
Off the Rack commerce operations. 1.4 percentage points due to lenders, they generally don’t
In volatile markets, Wal-Mart's forward Meanwhile, Wal-Mart Prosper Marketplace Inc. “the current turbulent market hold their customers’ loans on
defense matters. But for price/earnings ratio announced last month it was has started charging borrow- environment that we have wit- the balance sheet, instead
longer-term investing, there closing all of its Walmart ers more for loans on its plat- nessed since the beginning of passing them along for a fee
has to be some offense. 18 times Express stores. Those form, as the company deals 2016.” That means Prosper’s to investors ranging from
Right now, for Wal-Mart 16 smaller-format locations had with a greater risk of defaults borrowers pay more, while in- hedge funds to individual in-
Stores Inc., the once been viewed as a growth while striving to keep its loans vestors who buy the loans it vestors.
AHEAD OF former matters 14 engine beyond its massive attractive to investors with makes earn higher returns. Prosper’s rate increase fol-
THE TAPE more. 12 Supercenters. The closings higher-yielding alternatives. Online lenders like Prosper lows rival LendingClub Corp.,
Since underscore Wal-Mart’s The San Francisco company, aim to use powerful data and which raised rates in Decem-
bottoming in 10 continued struggles against which runs one of the biggest automated networks to reach ber. LendingClub Chief Execu-
November, shares of the smaller retailers and online online consumer-lending plat- borrowers reach borrowers tive Officer Renaud Laplanche
8
world’s largest retailer have juggernaut Amazon.com Inc. forms, told investors who buy with loans that are cheaper told investors at a Goldman
risen by about 18% as the 2011 ’12 ’13 ’14 ’15 And now, Wal-Mart also Sachs Group Inc. conference
broader market has fallen. Source: FactSet has falling prices to worry last week that the marketplace
Since peaking in January THE WALL STREET JOURNAL. about. Overall prices of goods, lender had increased its rates
2015, Wal-Mart has lost more excluding volatile food and in part “to provide investors
than one-quarter of its expect earnings of $1.46 a energy items, fell 0.4% in 2015 with more loss coverage in
market value, while the S&P share for the period ended in from a year earlier, according case losses start to increase if
500 has dropped only slightly. January, down 9% from a to the Labor Department. In the economy starts slowing
Wal-Mart’s fourth-quarter year earlier. While sales at the past, inflation has boosted down.”
results, out Thursday, should existing U.S. stores have retailers’ top-line growth. The LendingClub raised its rates
help decipher which trend risen for five quarters in a opposite is playing out now. across all loans by 0.25 per-
wins the day. With Wal-Mart row, Wal-Mart still must Trading at 16 times centage point in December to
TALIA HERMAN FOR THE WALL STREET JOURNAL

raising wages and boosting invest heavily to grow its projected earnings over the match the Federal Reserve’s
investment at a time of business. next 12 months, Wal-Mart’s 0.25 percentage-point increase
shrinking market share and The retailer alarmed multiple is about 15% higher in its target short-term rate. It
falling prices, investors investors in October by than its five-year average. adjusted prices further in Jan-
arguably should be focusing estimating profit would fall as Amid everyday low prices, uary, with some rates going up
more on the long-term much as 12% in 2016. That is Wal-Mart’s stock still could go as much as 0.67 percentage
trajectory than the stock’s largely due to Wal-Mart’s plan lower. point.
short-term uptick. to spend $2.7 billion on Overall, Prosper’s rates will
Analysts polled by FactSet higher wages and another $2 Email: tape@wsj.com rise to an average of 14.9%
from 13.5%, the company said
INDEX Credit Markets................................................ C6 Exchange-Traded Funds......................... C6 Heard on the Street................................... C8 Mutual Funds........................................... C7 in the email to investors.
Cash Prices................................................. C7 Currency Trading.......................................... C5 Finance Watch................................................ C3 IPO Scorecard.................................................. C4 New Highs & Lows............................... C4 Together, the moves sug-
Commodities............................................. C6 Dividend News............................................... C6 Global Finance................................................. C3 Money Rates................................................... C6 Stock Listings........................................... C7
Prosper Marketplace’s headquarters in San Francisco Please see RATES page C3
C2 | Thursday, February 18, 2016 * * THE WALL STREET JOURNAL.

MONEY & INVESTING

Kashkari: ‘Start With Real Transformation’ BANKS

The Federal Reserve Bank from there, we can. But let’s have an economy where you Continued from the prior page
of Minneapolis’s new presi- start with real transforma- need to have banks that are le- grown bigger. At the end of
dent, Neel Kashkari, on Tues- tion.” vered 15-to-1, 20-to-1 in order 2015, the big four U.S. banks
day called for policy makers to
On the right level of capi- to support all of the markets had combined assets equal
consider breaking up big tal for big banks…“I don’t have around the economy? I don’t to 51% of total bank assets at
banks, among other options, a number in my head. I’ve find that as a credible, viable insured institutions, accord-
to prevent future government seen some proposals for a 25% long-term economic level.” ing to data from the Federal
bailouts. capital requirement. So lever-
On why act now when Deposit Insurance Corp. That
The former Treasury De- age ratios, effectively, just to banks are safer…“I feel like compared with 44% at the
partment official and alumnus keep it simple, you know, 4:1. we’re in a little bit of a sweet end of 2006.

CHRIS GOODNEY/BLOOMBERG NEWS

of Goldman Sachs Group Inc. You know, I think that’s a spot, where the American peo- Consider, too, that while
and Pacific Investment Man- place we could discuss.” ple still remember the crisis— J.P. Morgan Chase & Co. has
agement Co. later met with
On the omission of a bal- it wasn’t that long ago—yet grown to become the biggest
The Wall Street Journal for a ance of risks assessment in things are stable enough bank by assets, its share-
conversation about the state the last Fed statement…“I where we could do something holders haven’t been clamor-
of the banking industry. don’t think we have enough more transformational. So if ing for a breakup. Over the
Here are select quotes: data yet to reach any conclu- we don’t move now, my fear is past 10 years—a period that

On whether breaking up sions about the outlook of we’re going to forget about it.” encompassed boom, bust and
big banks is the best ap- those risks. You know, there’s
On the risk in new bail-in recovery—its shares have av-
proach…“I do think that there more data to come between Neel Kashkari has called for policy makers to break up big banks. rules for bank bondhold- eraged a modest premium to
could be solutions shorter— now and March, and we’re go- ers…“If you’re a bondholder of its net worth.
short of what I have laid out ing to be looking at all of program differently to deal to thin out the forests and Bank B, and Bank A—Bank A’s Wells Fargo, meanwhile,
there. It could be capital re- that.” with the moral hazard issue.” they try to make the forests bondholders—just converted has traded at an even
quirements that are substan-
On whether the Troubled
On concerns about new less prone to forest fires. to equity, and you worry greater premium to its book
tially higher than are being Asset Relief Program could limits on the Fed’s power to That’s what I think we need to maybe you’re next. Boy, in a value. Yet it has been
put in place now, but maybe have been better designed to rescue financial institu- do here.” crisis the last thing you want steadily expanding and is
short of the full utility model avoid creating a perception of tions…“We all hate forest fires;
On whether regulation is if you’re a bondholder of Bank now bigger than Citi. This
that some experts are advocat- too big to fail…“At that point the solution to forest fires is drying up market liquidity…“I B is to be converted to equity, reflects the market’s greater
ing. That’s an example. But I we were just in a cleanup op- not taking the fire hoses away don’t find those arguments own shares.…I think we are comfort in Wells Fargo’s
don’t want to start there. I eration, right? The mistakes from the firefighters.…I lived that convincing, that, boy, we learning that some of these el- business model.
want to start by saying, what had already been made that in California, where there are just need Wall Street dealers egantly designed tools in Notably, the postfinancial-
does real transformation look had forced our hands. I don’t a lot of forests and a lot of making more markets and if stressed economic environ- crisis regulatory regime re-
like? And then perhaps we end see—I have not yet seen how forest fires. They don’t take we just did that, everything ments may not work out as el- flects this. It has been
up—if we need to walk back we could have designed the the fire hoses away. They try would be better.…Do we really egantly as we think.” crafted to take more than
size into account. So while
Wells Fargo is bigger, it has

COFFEE tween the two countries, ac-

cording to some analysts. A re-
cent drought in the robusta-
growing region in Brazil, paired
Continued from the prior page with a drawdown in stocks as
pushes their Vietnamese peers traders have exported older
to move into other crops, such beans, could push supply down,
as pepper. and world prices up, over the
“Coffee prices have been current season.
painfully low, and none of us Dollar strength has caused
want to sell the beans now,” distortions across the commod-
said Mr. Mlo, who is based in ities world.
Dak Lak, Vietnam’s largest cof- It has been a catalyst in a
XUAN LONG/XINHUA/ZUMA PRESS
a lower capital surcharge
than Citi because it is less
interconnected, less complex
and has a far smaller deriva-
tives book.
That makes sense. In that,
the new regulatory frame-
work, while far from perfect,
has gone a long way to im-
posing costs on big banks
based on the risks they pose
to the financial system.
The flaw is that this

fee-growing region. 20-month plunge in oil prices framework hasn’t made clear
Over the past year, robusta’s as crude becomes more expen- what the endgame is. The
price in dollars has fallen more sive for most buyers. implicit message of capital
than 29%. With the dong Currencies in emerging mar- surcharges and other con-
pegged to the dollar, the local kets have taken the biggest hits straints is that banks of a
price in Vietnam has almost against the dollar, and many of certain size and risk profile
matched that, falling by 27%, these countries, from Russia to will be treated as utilities.
and that has encouraged stock- South Africa, are big commod- But bank boards and in-
piling. ity exporters. vestors aren’t exactly sure
“Pepper prices are more at- A coffee-berry harvest in Vietnam, which is the world’s second-largest coffee producer after Brazil. That has cushioned the blow where the line lies. So banks
tractive than coffee now,” said of lower commodity prices and aren’t going to rush to dras-
Mr. Mlo, who is storing his cof- enabled nations to keep churn- tically shrink, or shed busi-
fee harvest in a warehouse as Coffee Break ing out resources, from copper
well as his bedroom. to iron ore, into oversupplied
Mr. Mlo can get 34,000 dong
A slumping real has been a boon for Brazil's coffee exporters, pushing up the local price and enabling
markets, adding to the price
Shareholders, not
them to run down stockpiles. Progress has been slower in Vietnam, where a stronger dong has
($1.52) a kilogram but is wait- suppressed local price increases. pressures. the government,
ing until robusta rises past Even as the price of plati-
40,000 dong before he sells. He num plummeted 26% last year,
should be the ones
said he will hold out until at South Africa, the world’s big- to split up big banks.
least September. 12 million 60-kilogram bags 12 million 60-kilogram bags $3.0 a metric ton gest producer, increased its
Stockpiling is contributing to Brazil Vietnam supply by more than 20%, ac-
a supply overhang in Vietnam 10 10 2.5 cording to Johnson Mat- nesses wholesale, if they
that makes it harder for ro- they PLC, which trades the pre- can’t be certain that they
busta to hit that price. 8 8 2.0 cious metal. The rand lost a will be rewarded with less
In one sign of the hoarding, quarter of its value against the onerous regulation.
Vietnamese robusta exports fell 6 6 1.5 dollar last year. There is evidence already
more than 20% in 2015 from The strong dollar also has that given a choice, and the
2014, according to Vietnamese 4 4 1.0 made U.S. exports less compet- right incentives, banks will
customs data. That was despite itive. The U.S. was supplanted make hard decisions. J.P.
2 2 0.5
a particularly strong crop, ana- by Canada as the world’s larg- Morgan is the prime exam-
lysts say. est national exporter of wheat, ple. It had been told it would
0 0 0
Some traders expect this a crown that Russia is set to be hit with a 4.5-percentage-
stockpile will eventually hit the 2008 ’10 2008 ’10 2008 2010 take this crop year. The Rus- point capital surcharge, the
market, and in the meantime Source: U.S. Department of Agriculture; FactSet (futures price) THE WALL STREET JOURNAL. sian ruble is down 19% against highest that can be levied on
this overhang pressures prices. the dollar since the start of a systemically important fi-
As it was falling for Vietnam- saw a record for robusta ex- cluding old supplies. largest producer of arabica cof- last year, while Canada’s dollar nancial institution. Requiring
ese farmers, the price of robusta ports last year. That fueled a 21% jump in Bra- fee, generally a higher-end is down 10% against the green- a bank to have even more
rose in Brazilian reais and is “This year I’m replanting, zil’s robusta exports last year, bean. Prices in that market also back. capital suppresses the return
now virtually flat from last year. like always, and I’m also adding according to Brazilian export have been hit by the dollar’s The effect of the dollar on on equity it can generate.
The real is down by more more plants,” he said. “At this association CeCafe. strength, as the extra income coffee means Mr. Mlo is now The lower the return, the
than 30% against the dollar in price it’s sustainable.” Between them, Vietnam and encourages further exporting contemplating his wife’s advice less a valuation premium in-
the past 12 months, hit hard by As Vietnamese stockpiles Brazil produce more than two- from Brazil and Colombia. to move into other crops. vestors will award a bank.
a domestic economic crisis and build, Brazilian farmers are thirds of the world’s robusta, Changing currency rates as “It’s not comfortable to see In the face of this, J.P.
the stronger greenback. taking advantage of the posi- according to the U.S. Depart- well as dry weather and de- the coffee bags around the Morgan moved quickly. It re-
Mr. Galimberti farms in Es- tive exchange rate to flush out ment of Agriculture. pleted stocks in Brazil could house, but we don’t know what duced overall assets by
pirito Santo, a coastal state that massive stores of beans, in- Brazil also is the world’s quickly change the dynamic be- else to do with it,” he said. nearly 10% in 2015—no mean
feat for a $2.5 trillion bal-
ance sheet—cut $200 billion

ECB economy. Some members of

the bank’s 25-member Govern-
ing Council have advocated
deep cuts.
rather than on systemic issues
that the central bank would
need to address. He has fre-
quently stressed that protect-
bank’s deposit rate, according
to the ECB’s account of the
meeting.
There was broad agreement
profit margins will fall too far
[as a result of subzero rates],
they won’t buy bank stocks,”
said Andrew Bosomworth, head
in nonoperating deposits and
shed about $15 billion in il-
liquid assets. The result: In
January, J.P. Morgan said it
Continued from the prior page Mr. Draghi acknowledged ing bank profitability isn’t the that a fresh rate cut would pro- of Pacific Investment Manage- now only expected to be hit
tools at its disposal in its goal the sharp decline in bank ECB’s job. vide a “significant enhance- ment Co.’s German portfolio- with a 3.5-percentage-point
of reigniting inflation, trum- stocks, but said problems were The policy debate centers ment” to the central bank’s management team. “That could capital surcharge.
peting the success of ultralow specific to individual institu- on how far the ECB can cut bond purchases by encouraging be what you’re seeing in Eu- Of course, not everyone
rates in bolstering the bloc’s tions or based on profitability, rates below zero without driv- banks that had sold bonds to rope.” will be as fleet-footed as J.P.
ing away investors and cus- the ECB to reinvest the money So far, though, economists Morgan. And that is why,
tomers from the region’s rather than park it at the cen- said the costs of subzero rates along with a more explicit
ADVERTISEMENT banks. tral bank, according to the ac- have been limited, amounting view of the regulatory end-
Indeed, the drop in bank count. to about €2 billion an- game, regulators also need
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
stocks might encourage the ECB
to cut rates further to offset
European lenders,
though, worry that
nually for all euro-
zone banks, according
to make it easier for share-
holders to bring pressure to
any increase in their funding negative interest rates to Christian Schulz, a bear on the biggest banks. In
costs, people familiar with the act as a tax on banks former ECB econo- other words, welcome in the
BANKRUPTCIES BANKRUPTCIES policy makers’ thinking said. because they typically mist who now works activists.
Investors now see an 86% can’t pass the costs at Citigroup Inc. That As things now stand, the

  

  
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Secretary
+91 7738857776
“some room for further down- Europe 600 index. —Todd Buell given the chance to pick
ward adjustments” to the “If markets fear that banks’ contributed to this article. their meal.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Japan Pension Stock Plan Shelved
Critics say move
would have caused
excessive state
influence on market
BY ELEANOR WARNOCK
TOKYO—Japan’s government
has put off a plan to let its $1.1
trillion public pension fund buy
and sell stocks directly, follow-
ing criticism that the move
could lead to excessive state in-
fluence on the market.
The decision dashes the
hopes of the Government Pen-
sion Investment Fund’s chief in-
vestment officer and some for-
eign money managers who
believed that a direct role in the
stock market could make the
fund a more effective investor
and improve corporate gover-
nance in Japan.
A committee in Prime Minis-
ter Shinzo Abe’s ruling Liberal
Democratic Party decided Tues-
day to postpone consideration of
Finance
Watch
GLENCORE
Big Loan to Get
Early Refinancing
Glencore PLC agreed to refi-
nance an $8.45 billion loan facil-
ity ahead of schedule to allay in-
vestor concerns about its ability
to refinance its hefty debt bur-
den in a sustained commodities
downturn.
The Switzerland-based com-
modities trader and mining firm
said it would replace its existing
$8.45 billion revolving credit facil-
ity, due to expire in May, with a
$7.7 billion facility that has no fi-
nancial covenants and will expire
two years later.
The early refinancing means
Glencore will have no refinancing
commitments until May 2018, a
person close to the refinancing
said.
Glencore’s shares surged 17%
on Wednesday in London,
though they remain down by
more than half over the past 12
months.
Last year, Glencore announced
plans to reduce its net debt by
more than $10 billion to between
$18 billion and $19 billion by the
end of this year. This was aimed
at easing investors’ concerns
that the company could lose its
investment-grade credit rating
given its heavy debt load if com-
modity prices remain low for lon-
ger or fall further.
—Alex MacDonald
DEUTSCHE BANK
SEC: Analyst Rating
Didn’t Match View
The Securities and Exchange
Commission said former
Deutsche Bank AG research an-
alyst Charles Grom issued a
stock rating that was inconsis-
tent with his personal view, a vi-
olation of SEC rules.
Mr. Grom will settle the case
by paying a $100,000 penalty
and will be suspended from the
securities industry for one year.
Mr. Grom neither admitted nor
denied the SEC’s findings.
The SEC said Mr. Grom reaf-
firmed a buy rating of Big Lots
Inc. on March 29, 2012, but had
privately told Deutsche Bank cli-
ents to sell shares of the dis-
count retailer. The day before,
Mr. Grom talked privately with
four unnamed hedge funds
which were Deutsche Bank cli-
ents, the SEC said. Subsequently,
the funds sold off their entire
Big Lots holdings, worth about
$40 million at the time.
According to the SEC, Mr.
Grom wrote in emails to col-
leagues that he kept the buy rat-
ing to maintain his relationship
with Big Lots executives.
“Analysts simply cannot ex-
press one view publicly and the
opposite view privately,” said An-
drew J. Ceresney, director of the
SEC’s enforcement division.
Mr. Grom and a representa-
tive from Big Lots didn’t respond
to a request for comment.
Deutsche Bank declined to com-
ment. Mr. Grom worked at
Deutsche Bank from June 2011
to February 2013 and was a
managing director and senior eq-
uity research analyst. He was
terminated due to “conduct not
consistent with firm standards,”
according to the SEC.
—Austen Hufford
* * * *
GLOBAL FINANCE
the issue for three years, said LDP
lawmaker Shigeyuki Goto, the
committee’s secretary-general.
“There won’t be any in-
house stock investing, but it re-
mains to be debated in the fu-
ture,” Mr. Goto said. “The stock
issue was the biggest sticking
point for those involved in the
discussions.”
The GPIF outsources deci-
sions on its nearly ¥60 trillion
($520 billion) stock portfolio to
more than a dozen outside as-
set managers. It handles do-
mestic bonds in-house.
Mr. Abe’s government has
pushed to make the GPIF a
more-sophisticated investor in
line with its overseas peers. The
fund has moved more money
into stocks and foreign bonds.
Yet opposition from business
and union leaders shows con-
cern about allowing too much
change at the GPIF, whose in-
vestment decisions affect how
much Japan’s pensioners can
receive.
Recent market turmoil has
Suspects are led out of ICBC’s offices in Madrid on Wednesday. Five bank directors were detained.
Spanish Police Raid ICBC
In Money-Launder Probe
BY JEANNETTE NEUMANN
MADRID—Authorities raided
the Spanish headquarters of In-
dustrial & Commercial Bank
of China Ltd. on Wednesday
and detained five directors, un-
der the orders of a judge inves-
tigating the bank over alleged
money laundering.
Spanish and European law-
enforcement officials are prob-
ing the Chinese bank’s Spanish
unit in the alleged laundering
of at least €40 million ($44.6
million) in deposits from sus-
pected criminal organizations,
Europol, Europe’s law-enforce-
ment coordinating body, said.
ICBC, one of the world’s
largest lenders, is “accused of
sending the funds to China
without checking their origin
as required by law,” said Eu-
ropol, which aided Spanish au-
thorities in the investigation,
known as “Operation Shadow.”
ICBC, in a statement issued
by its headquarters in Beijing,
said that abiding by anti-
money laundering rules is “a
RATES
Continued from page C1
gest that online lenders are
entering a new, trickier phase.
After five years of explosive
growth, with the platforms col-
lectively lending more than $12
billion in 2015, they face new
pressures from rising yields on
competing investments and
tougher credit conditions.
“This looks like a typical
credit-cycle turn,” said Brian
Weinstein, chief investment
officer at Blue Elephant Capi-
tal Management, which in-
vests in online consumer loans
and manages $100 million in
assets.
made the fund a politically sen-
sitive subject.
The GPIF was criticized by
opposition politicians after los-
ing nearly ¥8 trillion in the
third quarter of 2015 as global
stock prices fell, and it is ex-
pected to post more losses in
the coming months. Mr. Abe
was asked about the issue in
Parliament on Monday and re-
sponded, “If expected returns
aren’t met, that will of course
impact pension payments.”
Japan’s leading business
group Keidanren, as well as
Rengo, an umbrella group for
labor unions, both opposed let-
ting the fund directly invest in
stocks. They expressed concern
about the GPIF being used to
influence management at Japa-
nese companies by using its
voting rights as a shareholder.
“It’s a very serious issue if
the GPIF were to become a di-
rect shareholder,” said Keidan-
ren official Susumu Makihara at
a meeting to debate the change
in January. He said “a massive
basic business principle” of the
bank and that its “Madrid
branch is actively cooperating
with the investigation.”
Wednesday’s operation
builds on an earlier raid in
Spain in May 2015 known as
“Operation Snake,” which dis-
mantled an alleged Chinese
criminal network that authori-
ties suspected of importing
goods from China to Spain
without declaring them on cus-
toms forms to avoid paying
taxes.
Europol said at the time that
the gang had been operating
since at least 2009 and was
part of a larger criminal organ-
ization based in China that had
allegedly laundered more than
€300 million, mainly through
countries in Southern Europe.
Thirty-two people were de-
tained in Spain at the time.
Investigators later learned
that the money earned on
those illegal imports was de-
posited at ICBC in Spain, Eu-
ropol said.
The agency said that, as
Mr. Weinstein said he urged
Prosper to start charging bor-
rowers more since August
when he first noticed worsen-
ing loan performance. Prosper
said in its email to investors
that it had been increasing the
estimated losses on its loans
since last August.
The company didn’t discuss
specifics in the email. Last
week, ratings-firm Moody’s In-
vestors Service said that it
may downgrade a subset of a
pool of Prosper loans that are
securitized, citing higher-than-
forecast late payments and
charge-offs. The original rat-
ing on those loans was Baa3,
which is investment grade.
Overall returns on online
consumer loans have declined
state organization would be-
come a market player” under
the proposal and it wasn’t clear
how it would use its clout at
companies.
The GPIF’s chief investment
officer, Hiromichi Mizuno, lob-
bied in support of the idea. Di-
rect investment would allow
the fund more flexibility in exe-
cuting trades and bring more
information about markets to
the fund, he said at a welfare
ministry hearing.
Many public pension funds,
including South Korea’s Na-
tional Pension Service and the
Canada Pension Plan Invest-
ment Board, are allowed to hold
stocks directly.
Some money managers ex-
pressed concern about the di-
rection of the debate in Japan.
“Efforts to limit the invest-
ment capacity of the GPIF or its
voting rights could discourage in-
vestors who are looking for sig-
nals of improvement in Japan’s
approach to corporate gover-
nance,” Theresa Whitmarsh, ex-
JUAN MEDINA/REUTERS
Spanish authorities continued
their investigation after the
May 2015 raid, they discovered
that other Chinese and Spanish
criminal groups also had been
using ICBC’s unit in Spain to
transfer money earned from
smuggling, tax fraud and ex-
ploitative labor practices to
China.
“Operation Shadow shows
all the challenges that modern
transnational financial investi-
gations entail: criminal activi-
ties that generate cash which is
then injected into the financial
system through the misuse of
complex corporate structures,”
Igor Angelini, head of Europol’s
financial intelligence group,
said in a written statement.
“The complicity of several
professionals who move the
funds across different jurisdic-
tions completes the picture,”
he said.
Law-enforcement authorities
didn’t provide details on the
identities of the five ICBC
branch directors who were de-
tained.
steadily over the past year and
in December were at their
lowest since early 2012, ac-
cording to Orchard Platform,
which tracks marketplace
loans and connects investors
to lenders. Overall, 2015 saw
1.4
Percentage-point increase in
online lender Prosper
Marketplace’s rates
returns of 6.7%, the lowest
since 2011.
Now, however, investors are
seeing better yields elsewhere,
such as in high-yield corporate
credits, as a result of a recent
Thursday, February 18, 2016 | C3
ecutive director of the Washing-
ton State Investment Board, said
in a January statement.
The welfare ministry will
draw up a bill based on the rul-
ing party’s decision and plans
to submit it to Parliament for
approval this spring, officials
said. The bill is likely to make
some changes at the fund, set-
ting up a board of directors to
hold ultimate decision-making
power instead of the fund’s
president, they said.
Welfare ministry officials
also have said that Mr. Abe’s
cabinet would revise guidelines
to permit the GPIF to invest di-
rectly in assets such as infra-
structure, provided it does so
alongside other investors.
Jagdeep Singh Bachher, chief
investment officer at the Uni-
versity of California system,
said it would be good for the
Japanese fund to take such a
role.
“Being able to co-invest has
the benefit of creating a deeper
relationship with the managers
Deals Proved Elusive
For Now-Closed Firm
BY GILES TURNER
Former Wall Street execu-
tive Dean Barr thought he had
the next big thing: Instead of
investing in hedge funds, put
money into companies that
manage them.
It didn’t work out. Seven
years after launching, Founda-
tion Capital Partners LLC has
closed down, with the Green-
wich, Conn.-based company
having never closed a deal, ac-
cording to people familiar
with the matter.
FIH LLC, which had in-
vested $6.75 million in Foun-
dation’s operating business in
2014, is suing Mr. Barr and his
partners, alleging Foundation’s
business “was terminally
flawed,” according to the law-
suit. FIH is asking for its
money back plus unspecified
damages, according to the
suit.
Foundation’s former execu-
tives are contesting the law-
suit, which was filed in federal
court in Connecticut in May
2015, and have filed motions
to dismiss. After a hearing last
week, the judge is considering
the defendants’ motions.
In a statement to The Wall
Street Journal, Mr. Barr called
the action “a malicious and
misguided lawsuit that is com-
pletely without merit.” He said
FIH had filed the suit after un-
successfully attempting to
take over Foundation with two
former Foundation partners.
Lawyers for FIH declined to
comment.
Mr. Barr, who previously
ran Citigroup Inc.’s hedge-
fund unit and was chief invest-
ment officer of Deutsche Bank
AG’s asset-management arm,
launched the firm in 2009. At
the time, banks, which had
scooped up stakes in hedge-
fund firms before the financial
crisis to cash in on growth in
the industry, were starting to
pull back due to regulatory
constraints on ownership of
riskier assets.
As a result, big investors
clamored to fill the void. The
goal: to share not only in in-
vestment gains by managers
but also in the hefty fees those
firms can charge.
For Foundation, closing a
deal proved elusive. In 2011,
the fund unsuccessfully sought
to buy a stake of up to 20% in
Millennium Management
LLC, the Journal reported at
the time. It later made over-
tures to buy stakes in Lansd-
selloff in those bonds. So the
consumer lenders are forced
to respond by offering better
rates.
“It’s supply and demand,”
said Don Davis, a portfolio
manager at Prime Meridian
Capital Management, which
has invested in marketplace
loans and manages around
$130 million in assets. “The
high-yield bonds are starting
to look a little tempting.”
The rates also allow plat-
forms to adjust to potentially
growing numbers of consumers
who can’t pay back their debts
by charging more interest.
New securitizations of con-
sumer loans have halted since
the Prosper loans deal last
year. A package of loans made
Stocking Up
Japan's public penson fund has
rapidly increased its
stockholdings.
Share of Tokyo’s equity market
owned by GPIF
5.6% 2Q: 5.47%
5.4
5.2
5.0
4.8
4.6
FY’13 ’14 ’15
Note: Fiscal year ends March 31.
Sources: Government Pension Investment
Fund; Japan Exchange Group
THE WALL STREET JOURNAL.
that you’re working with to
hear their best opportunities,”
he said. “The more professional
you make the GPIF, and the
more you make it a good part-
ner, the more you will make
Japan a good place for institu-
tional investors such as us.”
owne Partners LLP, Cantab
Capital Partners LLP and Ar-
rowgrass Capital Partners
LLP, according to court docu-
ments filed by Mr. Barr.
Foundation also launched
an unsuccessful $600 million
bid for Goldman Sachs Group
Inc.’s Petershill unit, a private-
equity business that takes mi-
nority stakes in hedge funds,
according to separate motions
to dismiss filed by Mr. Barr
and Joseph Meehan, a Founda-
tion co-founder and former
chief operating officer who
also is a defendant in the suit.
An arm of Fortress Invest-
ment Group LLC, which had
agreed to lend up to $1 billion
to Foundation, pulled the
agreement in January 2015,
according to a person familiar
with the investor.
“No one is more disap-
pointed in the inability to get
the deals we worked on com-
pleted than I,” Mr. Barr said in
Foundation Capital
wasn’t able to strike
deals to buy stakes
in hedge-fund firms.
the statement to the Journal.
He also said that in hindsight
he wishes Foundation had
launched its effort within a
larger firm with established
fundraising operations.
FIH is backed by Nesanel
Milstein, according to people
familiar with the matter. The
Milstein family held a majority
stake in Burlington Coat Fac-
tory before selling the com-
pany to Bain Capital in 2006
for $2.06 billion.
FIH described Foundation
as riven by infighting and
lacking the capital to do deals,
and said such details were
withheld from FIH at the time
it was considering investing in
the firm, according to the suit.
FIH decided in August 2014
to redeem its investment and
said in the suit that it would
“never have made its invest-
ment had it known the true
facts at the time.”
“FIH made a risky invest-
ment, and it was a known risk,
and certainly not one induced
by fraud,” a lawyer for Mr.
Meehan said.
Foundation partners Joseph
Elmlinger and Thomas Ward
are co-defendants in the suit.
—Juliet Chung
contributed to this article.
by Chicago’s Avant Inc., in-
cluding some to people with
subprime credit scores, is be-
ing shopped to investors.
With the Prosper rate nar-
rowing its advantage with bor-
rowers, shares of LendingClub
have jumped 17% since Prosper
informed investors on Monday
night. Prosper isn’t publicly
traded.
In addition to shifting
prices, the lending platforms
are trying to move more of the
funding back to retail inves-
tors. Small investors originally
bought most of the loans, in
what is known as a “peer-to-
peer model.” But in recent
years, they have taken a back
seat to big institutions and
hedge funds.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C4 | Thursday, February 18, 2016
Oil Prices Buoyed by Iran
Minister pledges to
support moves to help
market but doesn’t
commit to limit output
BY TIMOTHY PUKO
AND GEORGI KANTCHEV
Oil prices surged after Iran’s
oil minister called the pact
struck by Saudi Arabia, Qatar,
Venezuela and Russia to limit
oil production a “first step” to-
ward stabilizing the market.
Iran, however, didn’t com-
mit to requests from fellow
members of the Organization
of the Petroleum Exporting
Countries to limit its output to
help raise
COMMODITIES oil prices,
adding to
skepticism
about whether the world’s big-
gest crude producers will en-
act the preliminary agreement
they announced Tuesday to
freeze their production. But
the Iranian oil minister, Bijan
Zanganeh, did say the country
would support any action to
help oil prices recover, accord-
ing to the country’s oil minis-
try website Shana.
Prices surged after the
STOCKS
Continued from page C1
The S&P 500 gained 31.24
points, or 1.6%, on Wednesday
to 1926.82, and the Nasdaq
Composite rallied 98.11 points,
or 2.2%, to 4534.06.
The Dow and S&P 500
hadn’t notched a three-session
winning streak since the three
days ended Dec. 23. It was the
S&P 500’s biggest three-day
advance since August.
The Dow Jones Transporta-
tion Average, which tracks air-
lines, railroads and trucking
companies in the U.S., has
gained 6.4% in the last three
trading sessions and has now
fallen just 2.4% this year.
Many investors watch the 20-
stock index for early signs on
the health of the economy.
However, several of the fac-
tors that have dragged stocks
lower in 2016, including con-
cerns about the pace of global
growth, remain in place. The
minutes of the Federal Re-
serve’s January meeting, re-
leased Wednesday, showed
that officials struggled with
uncertainty about the inflation
and growth outlooks, giving
few clues about when the cen-
tral bank will raise rates again.
Stock-market gains have
been driven by rebounds in
beaten-up sectors, suggesting
investors are beginning to look
for bargains after a rough
start to the year.
“We tell our clients that if
you see the market pull back
in an environment where the
economy is growing and you
expect it to grow further, then
you’re going to have a buying
opportunity,” said Paul Chris-
topher, head global market
strategist for Wells Fargo In-
vestment Institute. “It just
may not be one where you put
all the chips in at once,” he
said, adding that he likes the
consumer-discretionary sector.
Garmin and Priceline
Group, both components of
the sector, led the S&P 500
higher after upbeat earnings.
Priceline reported a 12% in-
crease in fourth-quarter profit
and forecast a strong spring
travel season because of lower
gasoline prices. Its shares
jumped $124.88, or 11%, to
$1,235.56.
Garmin’s results beat expec-
New Highs and Lows | WSJ.com/stocks
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock
Market stocks that hit a new 52-week intraday high or low in the latest session.
% CHG-Daily percentage change from the previous trading session.
52-Wk %
Stock Sym Hi/Lo Chg Stock
NYSE highs - 27
Adecoagro AGRO 13.08 4.5
AlerepfB ALRpB 408.68 -0.4
BadgerMeter BMI 66.45 0.6
BlackHillsUn BKHU 63.62 0.1
Briggs&Stratton BGG 21.38 -0.1
CampbellSoup CPB 61.60 2.5
VolarisADR VLRS 19.38 5.7
EduRltyTr EDR 39.65 -0.3
EdwardsLife EW 86.70 2.6
EmployersHoldings EIG 29.20 18.7
Fabrinet FN 29.90 2.2
HessDepPfdSeriesA HESpA 55.49 4.2
HigherOneHldgs ONE 4.19 9.1
Kellogg K 76.24 0.7
Online>>
During the trading day, 52-week highs and lows are updated hourly
at WSJMarkets.com. Lists for each market are available free, along
with easy access to charts and headlines.
MEHMET KAMAN/ANADOLU AGENCY/GETTY IMAGES
Wednesday, February 17, 2016
52-Wk %
Sym Hi/Lo Chg Stock
MarineHarvestADR MHG
McCormick MKC
NatlRetailPropPfE NNNpE
PSBusinessParks PSB
PhilipMorrisIntl PM
PiedmontNaturalGas PNY
RepublicServices RSG
STORECapital STOR
Sysco SYY
TAL EduADR XRS
TysonFoodsUn TSNU
TysonFoodsClA TSN
WasteConnections WCN
NYSE lows - 21
AlonUSAPartners ALDW 11.25 -4.2 RackspaceHosting RAX
news of his remarks, adding to
gains from earlier in the day.
Light, sweet crude for March
delivery settled up $1.62, or
5.6%, to $30.66 a barrel on the
New York Mercantile Ex-
change. Brent, the global
benchmark, settled up $2.32,
or 7.2%, at $34.50 a barrel on
ICE Futures Europe.
Traders around the world
have been looking for an
OPEC-Russia deal to jump-
start oil prices. They are down
more than 70% in less than
two years because a surge of
production left a glut building
up in storage around the
world. Despite skepticism
about whether a freeze will
help, many traders also have
said these meetings could
foreshadow broader coopera-
tion on curtailing production
and supporting prices.
“Short-term, if OPEC is able
to agree on anything, that’s a
step in the right direction,”
said David Meaney, portfolio
manager at BP Capital LP, an
investment firm with about $1
billion run by Oklahoma oil
man T. Boone Pickens. “People
believed that Iran would blow
up the agreement.”
Though Iran declined to
commit, it still is meeting and
Garmin shares rose 17% after upbeat earnings. Here, its stand at a Berlin trade fair last September.
Rebound
Recently battered sectors have led the three-day rally in U.S. stocks.
S&P 500 at one-minute
intervals
1940
1920
1900
1880
1860
1840
Thursday’s close
1820
1800
Friday Tues.
Sources: SIX Financial (index); WSJ Market Data Group
tations, and the company gave
mostly upbeat guidance for
the year. Its shares rallied
5.83, or 17%, to 41.06.
Earnings at S&P 500 com-
panies are set to fall in the
fourth quarter, which would
mark the third consecutive
quarter of declines, according
to FactSet.
But excluding the energy
sector, earnings are projected
to rise 2.5%. “It’s nothing to
get overly excited about, but
it’s not recessionary,” said
RBC’s Ms. Bogdanov.
52-Wk %
Sym Hi/Lo Chg
CaliforniaRscs CRC 14.41 7.0
ChinaZenAutIntlADR ZX 91.53 1.0
ClayEngy CWEI 25.55 0.9
ClearChannelOutdr CCO 93.19 3.1
DevonEnergy DVN 92.19 1.2
EnLinkMidstream ENLC 59.45 -0.1
EnLinkMidstream ENLK 45.61 -0.4
ErosInternational EROS 25.78 -0.1
Invacare IVC 44.53 1.4
LaredoPetroleum LPI 50.19 1.1
MagnaChipSmcndctr MX 70.22 0.6
MiXTelematicsADR MIXT 63.08 1.0
NuvFloatRteInc JFR 62.53 0.9
NuvnMrtOpFd JLS
PrimeroMining PPP
IN THE MARKETS
calling for further steps. Even
those smaller, more optimistic
signs are likely to encourage
bearish traders who have
flooded the market to bail out
just as a precaution, a move
that can lead to an increase in
prices, investors said.
“This is a momentum-driven
world,” said Tim Rudderow,
president of Mount Lucas
Management, which oversees
$1.7 billion and has positions
that benefit from oil staying
between the high $20s and low
$40s. “People get in and out of
positions like crazy based on
short-term volatility because
they’re afraid to lose money.”
Despite Iran’s diplomatic
tone, its lack of commitment
could still scuttle the deal for
a freeze, many others said.
The country’s deputy oil min-
ister, Rokneddin Javadi, told
state media on Wednesday
that the country was on track
to raise its exports by 500,000
barrels a day by March 20, ful-
filling a pledge to quickly
ramp up output since the end
of the economic sanctions that
blocked its exports.
“The deal hinges on Iran
complying, and they haven’t
given any signal they’re going
to curtail production,” said
S&P 500 sector performance
over past three trading days
1926.82 Financials
Consumer
discretionary
Materials
Energy
Information
technology
Industrials
Health care
Consumer
staples 3.2
Telecom.
services 2.0
Utilities Unchanged
Wed.
THE WALL STREET JOURNAL.
Financial stocks rose, solidi-
fying their recent rally. Shares
of Deutsche Bank rose 6.3% in
Frankfurt and Crédit Agricole
jumped 14% in Paris.
In the U.S., Bank of Amer-
ica shares rose 31 cents, or
2.5%, to 12.56 and shares of
Citigroup advanced 89 cents,
or 2.3%, to 39.78. Both stocks
have gained more than 5% this
week but have dropped more
than 20% so far this year.
U.S. crude oil surged 5.6%
to $30.66 a barrel on further
discussions about a production
Stock
52-Wk %
Sym Hi/Lo Chg Stock
Strats GSG GJS GJS 16.74
TejonRanch TRC 17.16
WstAsset DefOptr IGI 19.09
Xactly XTLY 4.68
NYSE Arca highs - 5
0.48 0.9 ETRACS2xMLvAlerian MLPQ 30.03 10.3
0.43 ... ETRACS2xMLevS&PMLP MLPZ 31.14 27.3
11.07 3.3 PIMCOShrtTrmMuniBd SMMU 50.81 0.3 AirTransportSvcs ATSG 11.85
2.97 3.7 PwrShsS&P500HiDivd SPHD 33.85 1.7 AlphOmgSemi AOSL 11.65
18.38 -4.4 SPDRS&PNAmNatlRscs NANR 26.28 3.7 AveXis
7.15 -19.4 NYSE Arca lows - 9
6.32 -6.2
DBXInvGradeBd IGIH 22.43 -0.1
5.59 -10.5
DirexnCyberBull2X HAKK 15.64 15.2
12.77 -23.9
DirexionSCBll1.25X LLSC 21.07 -14.2 Cray
4.04 5.8
GuggenheimBull2021 BSCL 20.38 ... EZchipSemi EZCH 25.47
3.27 -4.1
iShFloatingRateBd FLOT 50.14 ... Fastenal
3.33 6.2
iShiBoxx$InvGrCpBd LQD 112.67 ... HenrySchein HSIC 164.51
9.08 0.8
PIMCOEnhShMaturity MINT 100.52 ... InsteelIndustries IIIN 26.51
21.93 0.4 InvGradeCorpBdPort PFIG 24.80 0.1 InternetGoldGolden IGLD 13.16
1.49 -1.3
SPDRBarcIntlHiYdBd IJNK 20.30 -0.1 iPath10-yearBull DTYL 80.89
15.05 3.0
NYSE MKT highs - 2
AlexcoRes AXU 0.73 9.8 Nasdaq
NuveenNJMuni NJV 15.23 0.7 Orbcomm
NYSE MKT lows - 7
CorindusVascular CVRS 1.26 -2.1 WD-40
* *** THE WALL STREET JOURNAL.
Chris Kettenmann, chief en-
ergy strategist at Macro Risk
Advisors.
“There’s no way [Iran oil
KRISZTIAN BOCSI/BLOOMBERG NEWS
minister] Zanganeh could de-
fend a freeze in output at pre-
sanctions levels to either the
Iranian public or the govern-
ment,” said Emma Richards,
oil analyst at BMI Research.
“They’ve also lost a lot of
market share in the past few
years, in particular in Europe,
and they will be moving to Deutsche Bank last week moved to reassure investors about its bonds.
take that back.”
Even if oil producers all
agreed to a global production
freeze at January levels, the New Bank Investor
Worry: Bail-In Risk
world still would have about
300 million more barrels a
year than needed.
Late Wednesday, the Ameri-
can Petroleum Institute, an in-
dustry group, reported a 3.3- BY BEN EISEN Theodore, managing director
million-barrel drop in U.S. in the financial-institutions
crude supplies in the week Some of the recent anxiety group at Scope Ratings AG,
ended Feb. 12, according to around banks may be coming which looks at bail-in risk as
market participants. It also re- from postcrisis rules aimed at part of its credit analysis.
ported a 750,000-barrel in- preventing another bailout. The week made clear that
crease in gasoline stocks, mar- Holders of the bonds of the investors who bought up bank
ket participants said. biggest banks used to benefit bonds are still struggling to
The U.S. Energy Informa- from the assumption that such understand the implications of
tion Administration gives its firms were “too how bail-ins would affect their
official update on Thursday. CREDIT big to fail,” holdings in a worst-case sce-
Gasoline futures settled up MARKETS meaning taxpay- nario.
3.25 cents, or 3.3%, on ers would ride to In December, Portugal’s cen-
Wednesday at $1.0034 a gallon. the rescue if they tral bank injected capital into
ran into trouble. The financial Novo Banco SA using bonds is-
crisis proved them largely cor- sued by Banco Espírito Santo
rect.
Now, they are on the hook.
To avoid publicly financed res-
cues for big banks that flirt
SA, marking the first time se-
nior bondholders were forced
to help fund a bank bailout in
the country. The bonds were
with failure, regulators globally initially backed by Novo Banco,
have drawn up rules that the lender created from Es-
would dictate when and how pírito Santo’s failure, but were
bank investors would absorb then transferred back to the
losses. Some bondholders defunct bank, forcing bond-
would be “bailed in,” meaning holders to assume losses. In-
banks would be helped by, for vestors were told Monday that
example, writing off those the event didn’t trigger a pay-
bonds. out of the bank’s credit de-
In some cases, regulators faults swaps meant to protect
can require banks to convert against default.
the debt to equity, diluting
shareholders. Regulators hope
this will induce shareholders to
A regulatory ruling
better monitor bank risk. is ‘throwing things
This shift was the backdrop
to a scramble for the exits
off kilter,’ says Jeff
from risky bank debt last week, deGraff.
as investors worried that
Deutsche Bank AG might not be
able to pay interest on its con- In many respects, the cen-
tingent convertible bonds. If an tral bank’s decision on Novo
issuing bank’s capital cushion Banco was unique because it
drops too low, it generally can was made days before a new
stop paying interest on the set of regulations went into ef-
bonds, write them off or turn fect across the European
freeze. them into equity. Union, which took some power
In other markets, the Stoxx Deutsche Bank issued a rare away from local regulators, Mr.
Europe 600 rose 2.6%, al- statement last week that it Theodore said.
though it is still down 10% would continue to pay interest. Investors lent money to the
year to date. France’s CAC-40 Still, the annual cost to insure bank thinking they knew the
rose 3% Wednesday, London’s Deutsche Bank bonds against risks, said Jeff deGraaf, chair-
FTSE 100 added 2.9% and Ger- default for five years nearly man of Renaissance Macro Re-
7.2%
many’s DAX gained 2.7%. tripled from the end of last search. “All of a sudden there’s
In Asia-Pacific markets a unilateral decision that’s
6.5 year to 2.69 percentage
early Thursday, Japan’s Nikkei points on Thursday, according throwing things off kilter,” he
6.5 Stock Average, Hong Kong’s said.
to Markit.
6.4 Hang Seng Index and Austra- The cost dropped back to In the coming years, individ-
lia’s S&P ASX 200 were each 2.22 percentage points on ual countries will implement
5.7 up more than 2%. The Shang- Monday, after the bank said guidelines issued last Novem-
hai Composite was flat. On Friday it would buy back $5.4 ber by the Financial Stability
5.6
Wednesday, the Shanghai in- billion in senior unsecured Board, an international group
4.6 dex gained 1.1% after China’s bonds—debt from another part that monitors and makes rec-
central bank set the yuan of its capital structure—a move ommendations about the
weaker and injected additional aimed at shoring up investor global financial system. They
loans into the banking system. confidence. are meant to ensure that sys-
Trading in haven assets was It wasn’t just Deutsche Bank temically important global
muted. Gold added 0.3% to that struggled. Prices on bank banks will have enough loss-
$1,211.10 an ounce Wednesday. bonds dropped around the absorbing capacity to recapi-
U.S. Treasury prices world. The risk premium over talize if they get into trouble.
slipped, pushing the yield on U.S. Treasurys for U.S. bank By its very design, bail-in
the 10-year note up to 1.819%, debt rose to 1.85 percentage risk is particular to individual
from 1.779% on Tuesday. Yields points on Friday from 1.30 per- banks. Assessing that risk
rise when bond prices fall. centage points at the end of means taking a renewed focus
last year, according to Bank of on the fundamentals of a
AUCTION RESULTS America Merrill Lynch data. bank’s business, Mr. Theodore
Here are the results of Wednesday's Treasury
auction. All bids are awarded at a single price at the For some European lenders said.
market-clearing yield. Rates are determined by the
difference between that price and the face value. last week, the cost of buying In the U.S., the largest banks
FOUR-WEEK BILLS derivatives that protect against are better capitalized than in
Applications $177,773,906,700 default on senior bonds hit Europe, largely because they
Accepted bids $55,000,156,700
" noncompetitively $297,605,900
their highest levels since 2013. moved more quickly to deal
" foreign noncompetitively $0 "I would think the current with legacy problems with the
Auction price (rate) 99.979000
(0.270%)
turmoil that we saw in bank quality of their assets. U.S.
Coupon equivalent 0.275% prices and equity is related to banks also were more aggres-
Bids at clearing yield accepted 78.90%
Cusip number 912796HG7
a new awareness for investors sive about raising capital, giv-
The bills, dated Feb. 18, 2016, mature on March 17, that they are exposed to more ing them a thicker padding to
2016. risk than before,” said Sam absorb losses.
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
1.8 CrSuisHighYld DHY 1.94 2.1 Freeseas FREE 0.05 -12.6 OxfordLaneCapital OXLC 6.81 0.3 RokaBioscience ROKA 0.50 -0.2
-2.8 EnerJexRscsPfdA ENRJp 0.86 -18.5 Nasdaq lows - 50 FullCircleCapital FULL 2.04 -0.4 PeapackGladFinl PGC 16.17 -0.5 SearsHoldingsWt SHLDW 5.58 -1.9
0.4 OverseasShiphldgB OSGB 2.32 -2.5 AcadiaHealthcare ACHC 51.02 3.3 GladstInv6.75PfdB GAINO 22.10 -0.9 Polycom PLCM 8.79 1.2 SeaSpineHoldings SPNE 11.28 3.4
-1.2 SunlinkHealth SSY 0.40 -10.8 AdestoTechnologies IOTS 4.94 -6.0 GlobeImmune GBIM 1.40 -2.7 PopeResources POPE 58.10 -3.1 SunshineHeart SSH 0.86 ...
TofuttiBrands TOF 2.08 -20.1 AlbanyMolecular AMRI 14.57 3.5 HTGMolecularDiagn HTGM 2.03 0.1 PowerSolutions PSIX 9.78 11.5 SurgeryPartners SGRY 12.60 -6.4
VoltInfoSci VISI 6.44 -0.9 Alico ALCO 21.16 -4.1 MedTranscription MTBC 0.72 -5.6 Pulmatrix PULM 2.30 -6.7 VASCO VDSI 12.35 -3.7
Astronics ATRO 24.75 -16.6 MedigusADR MDGS 1.52 -7.4 Quidel QDEL 14.80 0.5 VangShrtCorpBd VCSH 78.75 0.1
Nasdaq highs - 20 BenitecBiopharmaWt BNTCW 1.19 -30.0 MoSys MOSY 0.65 ... RiceBranTechs RIBT 1.40 -17.2 Zix ZIXI 3.23 -19.6
-0.2 BloominBrands BLMN 15.08 -10.7
-0.4 BostonPvtFinlPfdD BPFHP 24.39 -4.4
AVXS 18.99 2.7 CSWIndustrials CSWI 28.80 -1.4 IPO Scorecard
BonaFilmGroupADR BONA 13.57 0.1 CalumetSpecialty CLMT 11.57 -12.6 Performance of IPOs, most-recent listed first
CTIIndustries CTIB 5.35 0.8 Carbonite CARB 6.50 6.0 % Chg From % Chg From
CincinnatiFin CINF 62.66 0.5 CatabasisPharma CATB 4.13 -0.2 Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day
CRAY 42.48 3.6 CatalystPharma CPRX 0.93 -37.3 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
0.2 Cerner CERN 49.89 -4.8 AveXis 18.75 –6.3 3.9 Atlassian 23.35 11.2 –15.9
FAST 44.94 1.7 ChanticleerHldgsWt HOTRW 0.01 -81.0
AVXS Feb. 11/$20.00 TEAM Dec. 10/$21.00
1.3 CodeRebel CDRB 1.74 -3.2 Proteostasis Thera 5.75 –28.1 –13.4 Axsome Thera 8.21 –8.8 –6.1
2.0 Determine DTRM 1.39 -1.7 PTI Feb. 11/$8.00 AXSM Nov. 19/$9.00
3.3 DianaContainershps DCIX 0.31 -1.6
BeiGene 26.06 8.6 –8.0 Duluth Hldgs 16.31 35.9 19.5
8.1 Diodes DIOD 16.58 -6.1 BGNE Feb. 3/$24.00 DLTH Nov. 19/$12.00
LoJack LOJN 6.44 0.2 DipexiumPharma DPRX 6.04 -10.0
MktVectorsBiotech BBH 103.75 2.3 EchoTherapeutic ECTE 0.88 2.2 Editas Medicine 16.70 4.4 –8.2 Match Grp 10.11 –15.8 –31.4
EDIT Feb. 3/$16.00 MTCH Nov. 19/$12.00
NDAQ 63.21
ORBC 8.00
2.1
0.8
EdgeTherapeutics EDGE
Essendant ESND
6.25 -4.3
26.00 -6.9
Yirendai 4.26 –57.4 –53.2 Mimecast 9.49 –5.1 –6.0
SandersonFarms SAFM 87.63 2.9 FairPointComms FRP 13.10 0.4 YRD Dec. 18/$10.00 MIME Nov. 19/$10.00
USATechnologies USAT 3.98 -1.6 FateTherapeutics FATE 1.46 ...
WDFC 106.99 -0.3 FlexCredScoreUSLg LKOR 48.16 -0.4 Sources: WSJ Market Data Group; FactSet Research Systems
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. Thursday, February 18, 2016 | C5

MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
16453.83 s 257.42, or 1.59% Trailing P/E ratio * 16.92 16.96 1926.82 s 31.24, or 1.65% Trailing P/E ratio * 20.58 20.44 4534.06 s 98.11, or 2.21% Trailing P/E ratio * 19.81 23.25
High, low, open and close for each P/E estimate * 14.59 16.73 High, low, open and close for each P/E estimate * 15.25 17.45 High, low, open and close for each P/E estimate * 16.38 18.35
trading day of the past three months. Dividend yield 2.72 2.46 trading day of the past three months. Dividend yield 2.39 1.96 trading day of the past three months. Dividend yield 1.30 1.29
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15

Current divisor 0.14602128057775

18000 2100 5080
65-day moving average 65-day moving average
17500 2050 4930

17000 2000 4780

Session high
DOWN UP 16500 1950 65-day moving average 4630
t

Session open Close

Close Open
t

16000 1900 4480

Session low
15500 1850 4330

Bars measure the point change from session's open

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

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

Latest 52-Week Range % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 1,217,139,756 9,401,805
Industrial Average 16486.12 16217.98 16453.83 257.42 1.59 18312.39 15660.18 -8.7 -5.6 5.6 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 1,079,440,136 8,093,129
Transportation Avg 7383.16 7225.22 7326.45 116.89 1.62 9178.48 6625.53 -19.3 -2.4 7.2 Most-active issues in late trading Decl. volume* 134,469,701 1,085,787
Utility Average 614.61 608.41 611.99 -2.50 -0.41 626.77 541.97 0.9 5.9 9.0 Volume After Hours Issues traded 3,212 375
Company Symbol (000) Last Net chg % chg High Low Advances 2,627 255
Total Stock Market 19738.67 19397.72 19697.66 329.13 1.70 22287.78 18663.11 -10.1 -6.7 7.4
Mkt Vectors Gold Miners GDX 12,335.8 17.75 -0.07 -0.39 18.86 16.61 Declines 537 110
Barron's 400 475.34 468.79 475.34 7.84 1.68 586.75 446.15 -14.8 -8.0 6.1
Bank Of America BAC 8,754.3 12.63 0.07 0.56 12.64 12.56 Unchanged 48 10
Nasdaq Stock Market SPDR S&P 500 SPY 8,013.7 193.16 0.28 0.15 207.75 182.61 New highs 27 2
Nasdaq Composite 4540.78 4463.51 4534.06 98.11 2.21 5218.86 4266.84 -7.6 -9.5 12.4 iShares China Large-Cap FXI 4,625.5 30.83 0.07 0.23 31.00 30.13 New lows 21 7
4204.62 4125.83 94.77 4719.05 3947.80 -8.6 Closing tick 643 70
Nasdaq 100 4199.10 2.31 -4.4 14.9 iShares MSCI Emg Markets EEM 3,587.6 30.61 0.05 0.16 30.62 30.47
Closing Arms† 0.58 0.40
ICICI Bank ADR IBN 3,132.3 5.50 -0.02 -0.30 5.52 5.50
Standard & Poor's Block trades* 7,034 81
Paramount Group PGRE 2,378.0 14.44 -0.46 -3.09 14.93 14.44
500 Index 1930.68 1898.80 1926.82 31.24 1.65 2130.82 1829.08 -8.2 -5.7 8.2 Nasdaq NYSE Arca
PwrShrs QQQ Tr Series 1 QQQ 2,254.4 102.71 0.21 0.20 102.82 96.66
MidCap 400 1313.53 1292.54 1309.21 19.98 1.55 1549.44 1238.82 -13.2 -6.4 5.5 Total volume* 2,262,231,882 378,780,705
SmallCap 600 623.40 613.28 618.92 7.15 1.17 742.13 588.26 -12.6 -7.9 6.2 Percentage gainers… Adv. volume* 1,895,479,270 334,006,199
Decl. volume* 358,441,668 43,942,875
Other Indexes Ingram Micro Cl A IM 351.9 36.50 6.85 23.10 38.00 27.50
Issues traded 2,954 1,402
Russell 2000 1016.28 997.83 1011.13 15.33 1.54 1295.80 953.72 -17.7 -11.0 3.1 Sanchez Energy SN 11.4 3.83 0.68 21.59 3.83 3.19
Advances 2,090 1,130
NYSE Composite 9551.63 9426.76 9532.28 156.89 1.67 11239.66 9029.88 -13.8 -6.0 2.2 Aerie Pharmaceuticals AERI 530.6 17.25 2.41 16.24 19.39 14.84 Declines 795 258
Value Line 410.87 401.32 409.73 8.41 2.10 522.42 383.82 -20.2 -8.1 0.9 Tenaris ADR TS 7.7 25.11 3.42 15.75 25.11 21.65 Unchanged 69 14
NYSE Arca Biotech 2915.74 2835.33 2915.74 80.05 2.82 4431.87 2642.53 -23.0 -23.6 20.1
LDR Holding LDRH 14.7 20.98 2.02 10.65 21.24 17.55 New highs 20 5
New lows 50 9
NYSE Arca Pharma 495.11 489.41 495.02 5.36 1.09 605.94 477.25 -11.3 -8.6 7.9 ...And losers
Closing tick 643 98
KBW Bank 62.40 61.39 61.61 0.40 0.66 80.41 56.51 -14.3 -15.7 3.8 Jack in the Box JACK 1,296.5 62.10 -14.81 -19.26 76.96 60.92 Closing Arms† 0.50 0.70
PHLX§ Gold/Silver 59.36 57.20 58.71 1.47 2.57 76.94 38.84 -23.2 29.6 -25.8 RPM Intl RPM 5.8 35.00 -4.51 -11.41 39.55 35.00 Block trades* 8,621 2,285
PHLX§ Oil Service 143.69 137.58 142.58 6.03 4.41 224.32 128.61 -31.1 -9.6 -17.3 Tyler Technologies TYL 12.6 131.22 -15.52 -10.58 147.12 131.22 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 606.97 594.97 606.05 14.12 2.39 746.08 559.18 -14.1 -8.7 12.2 Brookdale Senior Living BKD 9.9 12.28 -1.37 -10.04 13.67 12.28 †(TRIN) A comparison of the number of advancing and declining
24.16 21.83 -1.80 -7.47 40.74 11.95 22.5 issues with the volume of shares rising and falling. An
CBOE Volatility 22.31 44.4 21.4 ARRIS International ARRS 255.6 22.00 -2.24 -9.24 24.78 21.90 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

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

World The Global Dow 2158.75 34.15 1.61 –7.6 Ocular Therapeutix OCUL 8.67 2.41 38.50 44.19 5.07 -72.0 Invacare Corp IVC 12.81 -4.03 -23.93 23.59 12.77 -26.9
The Global Dow Euro 1825.73 30.66 1.71 –9.8 ION Geophysical IO 3.96 0.93 30.69 37.20 2.55 -89.2 Direxion Natl Gas Bear 3x GASX 47.83 -13.83 -22.43 158.95 35.40 ...
DJ Global Index 285.16 4.08 1.45 –7.4 Fossil Group FOSL 44.30 9.84 28.55 87.60 28.26 -47.1 Tofutti Brands TOF 2.30 -0.58 -20.10 6.40 2.08 -58.5
World DJ Global ex U.S. 192.41 2.28 1.20 –8.5 ETRACS 2xM Lev S&P MLP MLPZ 31.12 6.68 27.33 31.14 21.18 ... Zix ZIXI 3.44 -0.84 -19.63 5.78 3.23 -7.8
iPath Global Carbon GRN 5.71 1.18 26.04 13.75 4.09 -38.3 VelocityShares 3x Inv DWTI 254.00 -53.10 -17.29 484.23 56.32 153.4
Americas DJ Americas 458.04 8.34 1.86 –6.0
Sao Paulo Bovespa 41630.82 1.67 –4.0 Rose Rock Midstream RRMS 11.84 2.36 24.89 54.06 6.67 -72.1 Maxwell Technologies MXWL 5.15 -1.04 -16.80 8.49 4.06 -19.8
Brazil 683.12
12867.16 2.49 –1.1
Evoke Pharma EVOK 3.47 0.63 22.18 8.00 2.37 -37.6 Aclaris Therapeutics ACRS 15.65 -3.13 -16.67 33.88 10.99 ...
Canada S&P/TSX Comp 312.18
1.13 Titan International TWI 4.31 0.77 21.75 12.50 2.50 -56.2 Astronics ATRO 25.02 -4.99 -16.63 67.24 24.75 -49.9
Mexico IPC All-Share 43585.23 484.91 1.4
0.65 Constellium Cl A CSTM 4.89 0.86 21.34 20.81 3.38 -73.9 Direxion S&P Oil Gas Br DRIP 108.15 -17.13 -13.67 192.93 38.00 ...
Chile Santiago IPSA 2982.04 19.37 1.3
DXN Dly NatGas 3X Bl GASL 2.45 0.43 21.29 247.00 1.53 -98.9 Calumet Specialty Prdts CLMT 12.30 -1.78 -12.64 29.14 11.57 -52.6
Europe Stoxx Europe 600 328.77 8.40 2.62 –10.1
Teck Resources Cl B TCK 6.13 1.06 20.91 16.40 2.56 -61.8 Direxion Jr Gold Bear 3X JDST 12.13 -1.74 -12.55 73.00 11.10 -65.0
Euro zone Euro Stoxx 307.60 8.08 2.70 –10.9
CAI International CAI 5.82 0.96 19.75 25.54 4.83 -75.4 Direxion S&P Biotech Bear LABD 65.14 -9.24 -12.42 103.62 24.00 ...
Belgium Bel-20 3376.32 80.09 2.43 –8.8
Targa Resources TRGP 20.59 3.34 19.36 108.63 14.55 -79.1 Direxion Rg Banks Bear 3X WDRW 48.23 -6.77 -12.31 63.35 31.26 ...
France CAC 40 4233.47 122.81 2.99 –8.7 Regulus Therapeutics RGLS 7.49 1.21 19.27 21.22 5.14 -56.4 Exactech EXAC 17.36 -2.39 -12.10 26.20 16.11 -22.5
Germany DAX 9377.21 242.10 2.65 –12.7 Flexion Therapeutics FLXN 13.00 2.10 19.27 30.37 10.46 -43.3 ProSh Ult Bloom Crude Oil SCO 171.35 -21.47 -11.13 243.67 50.90 135.1
Israel Tel Aviv 1429.96 24.35 1.73 –6.5
Italy FTSE MIB 17377.89 420.05 2.48 –18.9
Netherlands AEX 414.75 11.48 2.85 –6.1 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 8364.90 227.30 2.79 –12.4 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Sweden SX All Share 474.77 14.97 3.26 –6.0
Switzerland Swiss Market 7946.19 132.40 1.69 –9.9 Bank Of America BAC 212,845 83.2 12.56 2.53 18.48 10.99 iSh iBonds Dec 2022 Corp IBDN 1,025 4090 24.24 -0.30 25.76 24.15
6030.32 2.87 –3.4 VelocityShares 3x Lg UWTI 182,566 118.0 1.69 16.55 42.80 1.17 IQ 50% Hdg FTSE Intl HFXI 177 2872 16.69 2.14 22.18 15.58
U.K. FTSE 100 168.15
SPDR S&P 500 SPY 127,485 -14.8 192.88 1.63 213.78 181.02 Flexion Therapeutics FLXN 4,611 2679 13.00 19.27 30.37 10.46
Asia-Pacific DJ Asia-Pacific TSM 1238.64 –9.66 –0.77 –10.9 Freeport-McMoRan FCX 103,464 92.0 7.16 12.40 23.97 3.52 Key Technology KTEC 215 2298 6.35 -2.76 13.33 6.29
Australia S&P/ASX 200 4882.10 –27.90 –0.57 –7.8 Mkt Vectors Gold Miners GDX 66,551 7.4 17.82 3.54 21.48 12.40 Regulus Therapeutics RGLS 10,445 2284 7.49 19.27 21.22 5.14
China Shanghai Composite 2867.34 30.77 1.08 –19.0
iShares MSCI Emg Markets EEM 65,710 -3.8 30.56 1.97 44.19 27.61 Direxion S&P500 Bull 1.25 LLSP 413 2094 24.20 2.33 27.19 22.64
Hong Kong Hang Seng 18924.57 –197.51 –1.03 –13.6
Finl Select Sector SPDR XLF 64,321 10.9 21.10 1.34 25.62 18.52 Ocular Therapeutix OCUL 5,614 2009 8.67 38.50 44.19 5.07
India S&P BSE Sensex 23381.87 189.90 0.82 –10.5
Marathon Oil MRO 62,933 237.6 7.41 0.14 31.53 6.52 Invacare Corp IVC 2,851 1970 12.81 -23.93 23.59 12.77
Japan Nikkei Stock Avg 15836.36 –218.07 –1.36 –16.8
Kinder Morgan KMI 55,581 26.3 17.18 9.99 44.71 11.20 RiverFront Strat Incm Fd RIGS 2,148 1842 23.93 1.01 25.45 23.41
Singapore Straits Times 2613.79 –30.79 –1.16 –9.3 Groupon GRPN 52,655 422.2 3.79 -7.11 8.37 2.15 DXN TOT MKT BEAR 1X TOTS 279 1689 20.17 -2.15 22.16 18.58
South Korea Kospi 1883.94 –4.36 –0.23 –3.9 * 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 8214.25 2.18 0.03 –1.5 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group

Consumer Rates and Returns to Investor Benchmark

Treasury Yields
yield curve Forex Race Currencies
and
Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs.
U.S.-dollar foreign-exchange rates in late New York trading
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Home Equity US$vs, US$vs,
A consumer rate against its Wed YTDchg Wed YTDchg
benchmark over the past year 5.00% 10% Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
Bankrate.com avg†: 4.76%
WSJ Dollar index Americas Thailand baht .02808 35.610 –1.2
Salem Five 3.00% 4.00 5
s
Vietnam dong .00004466 22390 1.1
Home equity loan 5.00% Salem, MA Argentina peso .0670 14.9220 15.3
978-745-5555 3.00 Europe
t 0 Brazil real .2509 3.9851 0.6
Savings Bank of Danbury 3.00% Canada dollar .7314 1.3673 –1.2 Czech Rep. koruna .04117 24.288 –2.4
4.00 One year ago 2.00
t

Danbury, CT 203-743-3849 –5 Chile peso .001427 700.70 –1.1 Denmark krone .1491 6.7082 –2.4
t s s Colombia peso .0002977 3359.32 5.8 Euro area euro 1.1130 .8985 –2.4
t 3.00 The Torrington Savings Bank 3.00% 1.00 –10 Yen Euro
Wednesday Ecuador US dollar 1 1 unch Hungary forint .003585 278.93 –4.0
Prime rate Torrington, CT 860-496-2152
0.00 Mexico peso .0545 18.3627 6.8 Iceland krona .007806 128.10 –1.6
2.00 Brookline Bank 3.24% –15
Peru new sol .2854 3.504 2.6 Norway krone .1170 8.5434 –3.4
1 3 6 1 2 3 5 710 30 2015 2016
Brookline, MA 877-668-2265 Uruguay peso .03135 31.9000 6.7 Poland zloty .2530 3.9528 0.7
1.00 month(s) years Venezuela b. fuerte .158603 6.3051 unch Russia ruble .01331 75.110 4.5
M AM J J A S ON D J F First National Bank of Pennsylvania 3.24%
maturity Asia-Pacific Sweden krona .1174 8.5155 0.8
2015 2016 Pittsburgh, PA 412-264-7151 Switzerland franc 1.0077 .9924 –1.0
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7186 1.3916 1.4
Turkey lira .3383 2.9561 1.3
China yuan .1533 6.5242 0.5
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0374 26.7625 11.5
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1284 7.7864 0.5
UK pound 1.4293 .6996 3.1
India rupee .01464 68.329 3.2
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000745 13431 –2.9 Middle East/Africa
Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008765 114.10 –5.2 Bahrain dinar 2.6526 .3770 unch
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002771 360.94 6.6 Egypt pound .1277 7.8302 unch
Libor, 3-month 0.62 0.62 0.26 l 0.62 0.33
Macau pataca .1247 8.0220 0.2 Israel shekel .2561 3.9041 0.3
Money market, annual yield 0.26 0.27 0.24 l 0.42 -0.24 Treasury, Ryan ALM 1455.066 1.504 1.400 1.957 1.351 3.200 2.912
Malaysia ringgit .2401 4.1647 –3.2 Kuwait dinar 3.3422 .2992 –1.4
Five-year CD, annual yield 1.32 1.32 1.29 l 1.53 0.04 10-yr Treasury, Ryan ALM 1760.574 1.819 1.706 2.480 1.642 –1.171 3.319 New Zealand dollar .6634 1.5074 3.0 Oman sul rial 2.5976 .3850 unch
30-year mortgage, fixed† 3.65 3.62 3.57 l 4.22 -0.19 DJ Corporate 342.641 3.404 3.337 3.462 2.641 –1.077 2.294 Pakistan rupee .00955 104.750 –0.1 Qatar rial .2746 3.642 unch
15-year mortgage, fixed† 2.93 2.88 2.85 l 3.42 -0.17 Aggregate, Barclays Capital 1855.650 2.320 2.230 2.630 2.000 1.787 2.194 Philippines peso .0210 47.577 1.5 Saudi Arabia riyal .2666 3.7506 –0.1
Jumbo mortgages, $417,000-plus† 4.30 4.25 4.00 l 4.97 0.12 Singapore dollar .7126 1.4033 –1.1 South Africa rand .0646 15.4709 unch
High Yield 100, Merrill Lynch 2302.534 8.105 8.313 8.696 5.016 –9.536 –0.054 South Korea won .0008165 1224.74 4.1
Five-year adj mortgage (ARM)† 3.51 3.31 3.14 l 3.92 0.45 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1935.350 2.400 2.320 2.900 2.260 2.793 2.662 Sri Lanka rupee .0069377 144.14 –0.1
New-car loan, 48-month 3.27 3.28 2.71 l 3.33 0.77 Taiwan dollar .03005 33.279 1.1 WSJ Dollar Index 89.24 –0.33–0.37 –1.03
Muni Master, Merrill 506.388 1.516 1.479 2.099 1.440 3.910 3.031
HELOC, $30,000 4.76 4.75 4.24 l 5.01 -0.19
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 672.143 6.816 6.936 7.128 5.679 0.440 0.527 Sources: Tullett Prebon, WSJ Market Data Group
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Commodities Wednesday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg

DJ Commodity 449.63 8.52 1.93 584.70 420.23 -19.74 -0.92

ONLINE
WSJ
Reuters-Jefferies CRB 162.54 3.67 2.31 231.77 155.01 -28.48 -7.79
Crude oil, $ per barrel 30.66 1.62 5.58 61.43 26.21 -41.20 -17.22
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and
.COM Natural gas, $/MMBtu 1.942 0.039 2.05 3.02 1.76 -31.40 -16.90
ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at
Gold, $ per troy oz. 1211.10 3.20 0.26 1247.90 1050.80 0.95 14.22
WSJMarkets.com
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
C6 | Thursday, February 18, 2016 THE WALL STREET JOURNAL.

COMMODITIES & CREDIT MARKETS

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

Contract Open Soybeans (CBT)-5,000 bu.; cents per bu. Cocoa (ICE-US)-10 metric tons; $ per ton.
Metal & Petroleum Futures Open High hilo Low Settle Chg interest March 879.00
885.25 876.75 882.50 2.75 193,641 March 2,797 2,912 2,775 2,878 85 960
Contract Open May 881.00
887.00 879.25 885.25 2.75 254,361 May 2,834 2,915 2,809 2,880 46 93,094
Open High hi lo Low Settle Chg interest May 32.83
35.26 32.49 34.69 2.05 230,722
June 34.06
36.48 33.81 35.97 2.04 175,937
Soybean Meal (CBT)-100 tons; $ per ton. Coffee (ICE-US)-37,500 lbs.; cents per lb.
Copper-High (CMX)-25,000 lbs.; $ per lb. March 264.70 266.40 263.30 263.60 –1.20 99,895 March 115.00 115.80 113.85 114.55 –.35 18,074
Dec 38.30
40.48 38.15 40.07 1.91 180,441
Feb 2.0435 2.0690 2.0400 2.0740 0.0250 706 May 266.60 268.30 265.20 265.50 –1.40 141,444 May 116.90 117.85 115.80 116.60 –.40 84,318
Dec'17 42.99
44.42 42.65 44.10 1.62 93,918
May 2.0565 2.0855 2.0475 2.0790 0.0225 83,763 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Soybean Oil (CBT)-60,000 lbs.; cents per lb. Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Gold (CMX)-100 troy oz.; $ per troy oz. March 31.62 32.03 31.46 31.99 .38 82,211 March 13.22 13.31 13.06 13.16 –.06 122,639
March 1.0320 1.0995 1.0155 1.0879 .0609 51,571
Feb 1196.50 1212.90 1196.50 1211.10 3.20 574 May 31.70 32.25 31.69 32.22 .38 153,928 May 13.24 13.29 13.04 13.15 –.05 295,661
April 1.0454 1.1135 1.0290 1.1010 .0611 73,082
April 1201.90 1214.40 1196.20 1211.40 3.20 302,120 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Rough Rice (CBT)-2,000 cwt.; $ per cwt. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
June 1202.10 1214.40 1197.20 1211.80 3.20 65,762 March 1083.00 1117.50 1078.00 1104.00 20.00 7,211 May 25.60 25.99 25.60 25.69 .14 2,992
March .9775 1.0380 .9606 1.0034 .0325 53,219
Aug 1204.50 1214.80 1198.10 1212.20 3.20 14,650 May 1108.00 1144.50 1105.50 1131.50 20.50 4,600 July 25.75 26.24 s 25.75 25.91 .16 1,903
April 1.2108 1.2715 1.1926 1.2458 .0437 91,373
Dec 1206.30 1216.00 1199.50 1213.30 3.40 16,387
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Wheat (CBT)-5,000 bu.; cents per bu. Cotton (ICE-US)-50,000 lbs.; cents per lb.
Dec'17 1209.10 1220.30 1208.10 1218.20 4.10 5,946 March 463.75 470.00 462.50 468.50 4.25 131,760 March 59.73 60.30 59.55 59.87 .02 19,544
March 1.925 1.960 1.893 1.942 .039 108,799
Palladium (NYM) - 50 troy oz.; $ per troy oz. May 468.00 474.75 467.50 474.50 5.50 170,494 May 59.60 59.99 59.35 59.55 –.19 104,160
April 1.981 2.028 1.959 2.011 .042 232,784
Feb 492.00 492.00 492.00 516.10 6.30 1 May 2.051 2.092 2.025 2.076 .041 176,870 Wheat (KC)-5,000 bu.; cents per bu. Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
March 510.55 516.50 508.30 515.90 6.30 18,303 July 2.179 2.225 2.164 2.213 .039 67,486 March 450.00 455.00 448.25 454.00 3.25 50,279 March 135.85 136.65 131.20 131.55 –4.55 4,019
June 510.25 516.70 510.00 516.50 6.20 9,603 Sept 2.228 2.274 2.222 2.266 .038 55,508 May 459.25 463.75 457.00 462.75 2.75 70,060 May 136.00 136.50 131.00 131.30 –4.75 6,714
Platinum (NYM)-50 troy oz.; $ per troy oz. Oct 2.265 2.306 2.255 2.297 .034 76,086 Wheat (MPLS)-5,000 bu.; cents per bu.
Feb 954.00 954.00 s 954.00 948.80 12.10 1 March 490.50 494.75 489.25 493.75 2.25 20,901 Interest Rate Futures
932.00 952.20 930.50 949.70 12.40 58,571 May 494.00 497.50 492.00 496.50 1.75 24,590 Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
April Agriculture Futures
Silver (CMX)-5,000 troy oz.; $ per troy oz. Corn (CBT)-5,000 bu.; cents per bu. Cattle-Feeder (CME)-50,000 lbs.; cents per lb. March 165-250 166-120 163-300 164-180 –1-05.0 555,138
15.385 15.385 15.385 15.372 0.043 4 March 154.750 158.000 154.675 156.000 1.500 12,476 June 164-150 165-000 162-190 163-070 –1-05.0 13,413
Feb March 362.75 367.50 362.00 367.25 4.25 370,828
15.275 15.415 15.190 15.377 0.043 74,409 April 154.275 157.100 154.150 155.175 1.225 9,623 Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March May 367.25 371.75 366.50 371.50 3.75 460,018
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Oats (CBT)-5,000 bu.; cents per bu. Cattle-Live (CME)-40,000 lbs.; cents per lb. March 130-305 131-065 130-060 130-140 –15.0 2,956,158
Feb 133.350 134.900 133.250 134.100 1.150 8,057 June 130-180 130-260 129-260 130-020 –15.5 188,719
March 29.14 31.49 28.73 30.66 1.62 162,070 March 198.75 201.25 198.75 200.50 1.25 4,214
April 132.625 134.250 132.325 133.425 1.300 123,270 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
April 31.19 33.66 30.81 32.98 2.01 476,726 May 203.50 204.75 202.00 203.50 … 4,531
Hogs-Lean (CME)-40,000 lbs.; cents per lb. March 121-082 121-130 120-277 121-000 –7.5 2,584,749
April 70.225 71.375 s 69.675 71.150 1.000 83,916 June 121-032 121-100 120-237 120-280 –8.0 165,303
June 79.725 80.650 79.300 80.500 .725 38,715 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Bonds | WSJ.com/bonds Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
March 248.90 256.00 248.40 253.30 4.00 2,659
March 109-145 109-160
June 109-160 109-160
109-110 109-125
109-107 109-125
–2.0 1,119,437
–2.2 87,471
May 245.50 253.30 245.50 250.50 5.10 2,215 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Tracking Bond Benchmarks Milk (CME)-200,000 lbs., cents per lb. Feb 99.623 99.625 t 99.623 99.625 –.005 108,740
Feb 13.87 13.87 13.82 13.83 –.01 4,457 May 99.610 99.610 99.595 99.600 –.010 133,297
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week March 13.84 13.92 13.84 13.87 –.03 5,006 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
highs and lows for different types of bonds March 107.938 107.969 107.250 107.500 –.500 29,714
Total return Yield (%), 52-Week Range l Latest 1 Month Libor (CME)-$3,000,000; pts of 100%
close YTD total return (%) Index Latest Low 0 5 10 15 20 25 High July 99.4700 99.4700 99.4700 99.4750 –.0275 186

1855.65 1.6 Broad market Barclays Aggregate 2.320 2.000 l 2.630

Dividend Changes Eurodollar (CME)-$1,000,000; pts of 100%
March 99.3625 99.3650 99.3500 99.3575 –.0050 1,055,527
Dividend announcements from February 17. June 99.3350 99.3400 99.3000 99.3150 –.0200 1,286,192
2467.35 -0.1 U.S. Corporate Barclays Capital 3.720 2.830 l 3.720 Sept 99.3000 99.3150 99.2550 99.2750 –.0250 1,184,280
2422.04 0.2 Intermediate 3.130 2.230 l 3.130 Amount Payable / Dec 99.2500 99.2700 99.1950 99.2200 –.0300 1,265,131
Company Symbol Yld % New/Old Frq Record
3124.96 -0.8 Long term 5.140 4.170 l 5.140
Increased Currency Futures
522.91 0.7 Double-A-rated 2.620 2.070 l 2.700 Activision Blizzard ATVI 0.9 .26 /.23 A May11 /Mar30 Japanese Yen (CME)-¥12,500,000; $ per 100¥
605.66 -1.0 March .8762
.8826 .8738 .8795 .0007 246,914
Triple-B-rated 4.460 3.300 l 4.460 Analog Devices ADI 3.2 .42 /.40 Q Mar08 /Feb26
Coca-Cola Enterprises CCE 2.4 .30 /.28 Q Mar17 /Mar04 June .8786
.8851 .8764 .8821 .0007 1,830
319.75 -3.3 High Yield Constrained Merrill Lynch 9.577 5.853 l 10.099 PS Business Parks PSB 3.3 .75 /.60 Q Mar31 /Mar16 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Public Service Enterprise PEG 3.9 .41 /.39 Q Mar31 /Mar10 March .7210 .7316 .7195 .7287 .0081 152,116
257.20 -7.9 Triple-C-rated 20.987 10.017 l 21.753 June .7214 .7317 .7197 .7288 .0080 4,423
Questar STR 3.5 .22 /.21 Q Mar14 /Feb26
2302.53 -3.0 High Yield 100 8.105 5.016 l 8.696 Reis REIS 3.0 .17 /.14 Q Mar16 /Mar09 British Pound (CME)-£62,500; $ per £
Vishay Intertech 2.1 .0625 /.06 Q Mar29 /Mar11 March 1.4307 1.4340 1.4233 1.4288 .0003 258,499
295.19 -2.9 Global High Yield Constrained 9.075 5.894 l 9.437 VSH
June 1.4304 1.4344 1.4241 1.4294 .0003 1,892
Weingarten Realty Inv WRI 4.2 .365 /.345 Q Mar15 /Mar08
255.66 -2.8 Europe High Yield Constrained 5.920 3.550 l 6.412 Swiss Franc (CME)-CHF 125,000; $ per CHF
Reduced March 1.0128 1.0159 1.0069 1.0101 –.0027 47,987
1608.07 1.7 U.S Agency Barclays 1.350 1.170 l 1.680 Devon Energy DVN 1.2 .06 /.24 Q Jun30 /Jun15 June 1.0166 1.0202 1.0116 1.0146 –.0027 536
1446.91 1.2 10-20 years 1.150 0.980 l 1.480 Rentech Nitrogen Partners RNF 5.3 .10 /.25 Q Feb29 /Feb25 Australian Dollar (CME)-AUD 100,000; $ per AUD
March .7103 .7179 .7076 .7159 .0068 110,279
3169.30 5.4 20-plus years 2.900 2.700 l 3.370 Funds and investment companies June .7079 .7148 .7042 .7129 .0068 1,114
iPath Asian & Gulf Curr PGD 2.1 .0875 M Feb22 /Feb19
1935.35 1.5 Mortgage-Backed Barclays 2.400 2.260 l 2.900 iPath GEMS Asia 8 ETN AYT 5.3 .1772 M Feb22 /Feb19
Mexican Peso (CME)-MXN 500,000; $ per MXN
March .05286 .05559 .05267 .05440 .00152 107,262
1910.81 1.2 Ginnie Mae (GNMA) 2.330 2.180 l 2.860 iPath GEMS Index ETN JEM 6.3 .1457 M Feb22 /Feb19 June .05253 .05520 .05233 .05399 .00147 54,130
Lazard Div & Income Fd LOR 8.6 .05737 M Mar23 /Mar11
1132.88 1.6 Fannie mae (FNMA) 2.410 2.270 l 2.910 Lazard Global TR Fund LGI 8.4 .07948 M Mar23 /Mar11
Euro (CME)-€125,000; $ per €
March 1.1148 1.1187 1.1113 1.1146 –.0006 418,916
1743.20 1.6 Freddie Mac (FHLMC) 2.440 2.300 l 2.930 RiverFront Strat Incm Fd RIGS 3.5 .0689 M Feb24 /Feb19
June 1.1183 1.1217 1.1145 1.1178 –.0005 9,403
Voya Gl Equity Div IGD 14.2 .076 M Mar15 /Mar03
506.39 1.4 Muni Master Merrill Lynch 1.516 1.440 l 2.099 Voya Intl High Div IID 14.4 .069 M Mar15 /Mar03
Index Futures
355.21 1.9 7-12 year 1.498 1.398 l 2.144 Stocks Mini DJ Industrial Average (CBT)-$5 x index
390.69 1.1 12-22 year 2.001 1.898 l 2.636 Cardica CRDC 1:10 /Feb17 March 16130 16454 16075 16413 282 61,881
June 16026 16355 15983 16314 281 966
371.18 1.1 22-plus year 2.699 2.593 l 3.351 Foreign S&P 500 Index (CME)-$250 x index
Autoliv ALV 2.2 .58 Q Jun02 /May18 March 1888.00 1927.00 1882.00 1922.70 33.90 136,859
2241.24 0.2 Yankee Barclays 3.060 2.430 l 3.110 Banco Bradesco Ord ADR BBDO .00425 Apr08 /Mar04 June 1914.50 1915.90 1911.90 1913.80 33.90 3,327
Banco Bradesco Pref ADR BBD .00468 Apr08 /Mar04 Mini S&P 500 (CME)-$50 x index
534.38 2.4 Global Government J.P. Morgan 1.300 1.220 l 1.780 Crescent Point Energy CPG 7.3 .07174 M Mar15 /Feb29 March 1888.25 1927.25 1881.50 1922.75 34.00 3,003,822
766.13 1.4 Canada 1.510 1.360 l 1.970 DHX Media Var Voting DHXM 0.9 .01148 Q Mar21 /Feb26 June 1878.50 1918.50 1873.00 1913.75 33.75 90,792
DRDGOLD ADR DRD 2.2 .07632 A Apr01 /Mar18 Mini S&P Midcap 400 (CME)-$100 x index
363.29 1.5 EMU 1.045 0.724 l 1.609 No Amer Engy Ptnrs NOA 3.6 .01435 Q Apr08 /Mar04 March 1283.30 1311.90 1279.60 1306.50 21.60 101,766
698.45 2.4 France 0.820 0.490 l 1.360 Perrigo Co. PLC PRGO 0.4 .145 Q Mar15 /Feb26
Mini Nasdaq 100 (CME)-$20 x index
Restaurant Brands Intl QSR 1.6 .14 Q Apr04 /Mar03
509.79 3.1 Germany 0.360 0.160 l 1.040 Student Transportation STB 10.8 .03667 M May16 /Apr29
March 4089.8 4208.5 4068.3 4196.8 104.0 268,672
June 4079.0 4202.0 4060.0 4187.3 102.5 824
283.72 2.0 Japan 0.470 0.420 l 0.890 Student Transportation STB 10.8 .03667 M Jun15 /May31
Student Transportation STB 10.8 .03667 M Jul15 /Jun30
Mini Russell 2000 (ICE-US)-$100 x index
557.92 2.8 Netherlands 0.550 0.240 l 1.130 March 993.80 1014.80 986.30 1009.30 18.30 436,044
UBS Pfd Fding Tr IV UBSpD 1.7 .02269 M Mar15 /Mar01
June 994.50 1008.20 994.50 1003.60 18.00 79
861.12 4.3 U.K. 1.930 1.760 l 2.480
Special Mini Russell 1000 (ICE-US)-$100 x index
672.14 0.2 Emerging Markets ** 6.816 5.679 l 7.128 Chicago Rivet & Machine CVR 3.0 .25 Mar18 /Mar04 March 1050.10 1061.50 1048.90 1059.20 20.20 7,665
National Presto Inds NPK 1.2 4.05 Mar15 /Mar01 U.S. Dollar Index (ICE-US)-$1,000 x index
*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 Yadkin Financial YDKN 1.8 .50 Mar07 /Feb29 March 96.99 97.12 96.65 96.80 –.08 66,955
** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan June 97.07 97.21 96.81 96.90 –.08 2,442
KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
semiannual; S2:1: stock split and ratio; SO: spin-off. Source: SIX Financial Information
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Borrowing Benchmarks | WSJ.com/bonds
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago
Spread Under/Over U.S. Treasurys, in basis points
Latest Prev Year ago Money Rates February 17, 2016
0.750 U.S. 2 0.750 s l 0.726 0.854 0.682
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
1.625 10 1.821 s l 1.776 2.038 2.141
guide to general levels but don’t always represent actual transactions.
5.500 Australia 2 1.872 t l 1.898 1.963 1.892 112.2 117.2 121.0
Inflation Week —52-WEEK— Week —52-WEEK—
4.250 10 2.498 t l 2.535 2.652 2.541 67.7 75.9 40.0 Dec. index Chg From (%) Latest ago High Low Latest ago High Low
4.250 France 2 -0.388 s l -0.402 -0.331 -0.095 -113.8 -112.8 -77.7 level Nov. '15 Dec. '14
Euro commercial paper Euro interbank offered rate (Euribor)
1.000 10 0.649 t l 0.656 0.873 0.636 -117.1 -112.0 -150.5 U.S. consumer price index 30 day n.q. n.q. -0.02 -0.12 One month -0.249 -0.238 0.001 -0.249
0.500 Germany 2 -0.500 s l -0.503 -0.381 -0.205 -125.0 -122.8 -88.7 All items 236.525 –0.34 0.7 Two month n.q. n.q. -0.01 -0.09 Three month -0.189 -0.175 0.048 -0.189
Core 243.779 –0.12 2.1 Three month n.q. n.q. 0.01 -0.08 Six month -0.121 -0.111 0.126 -0.121
0.500 10 0.269 l 0.269 0.477 0.341 -155.2 -150.7 -180.0
Four month n.q. n.q. 0.02 0.00 One year -0.011 -0.001 0.255 -0.012
4.500 Italy 2 0.081 t l 0.096 0.020 0.323 -66.9 -63.0 -35.9 International rates Five month n.q. n.q. 0.03 0.01
Six month n.q. n.q. 0.04 0.02 Value 52-Week
2.000 10 1.618 t l 1.638 1.562 1.639 -20.3 -13.8 -50.2 Week 52-Week Latest Traded High Low
0.100 Japan 2 -0.146 s l -0.158 -0.028 0.036 -88.4 -64.6 Latest ago High Low Libor
-89.6 DTCC GCF Repo Index
One month 0.43005 0.42850 0.43060 0.17100
0.300 10 0.049 s l 0.046 0.218 0.394 -177.2 -173.0 -174.8 Prime rates Three month 0.61940 0.62050 0.62430 0.26060
Treasury 0.485 86.700 0.639 0.059
0.86590 0.87060 0.37835
MBS 0.506 125.950 0.705 0.075
0.500 Spain 2 0.061 t l 0.073 0.025 0.320 -68.9 -65.3 -36.2 U.S. 3.50 3.50 3.50 3.25 Six month 0.86660
Canada 2.70 2.70 2.85 2.70 One year 1.13465 1.13055 1.17800 0.66860 Open Implied
2.150 10 1.750 t l 1.762 1.730 1.598 -7.1 -1.4 -54.4 Settle Change Interest Rate
Japan 1.475 1.475 1.475 1.475
1.000 U.K. 2 0.373 s l 0.371 0.442 0.391 -35.5 -29.1
Euro Libor
-37.7 DTCC GCF Repo Index Futures
Policy Rates One month -0.255 -0.244 -0.004 -0.255
2.000 10 1.482 s l 1.443 1.666 1.763 -33.9 -33.3 -37.9 Three month -0.208 -0.193 0.026 -0.208 Treasury Feb 99.515 0.005 6136 0.485
Euro zone 0.05 0.05 0.05 0.05
Source: Tullett Prebon Switzerland 0.50 0.50 0.50 0.50 Six month -0.126 -0.118 0.091 -0.126 Treasury Mar 99.460 -0.010 5010 0.540
0.50 0.50 0.50 0.50 One year -0.014 -0.010 0.224 -0.017 Treasury Apr 99.460 -0.010 1850 0.540
Corporate Debt Britain
Australia 2.00 2.00 2.25 2.00
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. Overnight repurchase
U.S. 0.48 0.49 0.51 0.07
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Investment-grade spreads that tightened the most… Largest 100 exchange-traded funds, latest session Closing Chg YTD
Spread*, in basis points Stock Performance U.S. government rates ETF Symbol Price (%) (%)
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg Wednesday, February 17, 2016
Discount iShShortTreasuryBd SHV 110.32 ... 0.1
Closing Chg YTD
Freeport–McMoRan FCX 2.375 March 15, ’18 1548 –249 2185 7.16 12.40 1.00 1.00 1.00 0.75 ETF Symbol Price (%) (%) iSh1-3YTreasuryBd SHY 84.97 0.02 0.7
salesforce.com CRM 0.250 April 1, ’18 595 –150 344 63.49 6.31 iSh7-10YTreasuryBd IEF 109.98 –0.24 4.2
AlerianMLPETF AMLP 9.60 5.73–20.3
Transocean RIG 6.500 Nov. 15, ’20 2048 –91 2064 9.13 5.43 Federal funds iSh20+YTreasuryBd TLT 129.31 –0.61 7.2
CnsmrDiscSelSector XLY 73.02 2.15 –6.6
Effective rate 0.3900 0.3900 0.4000 0.0600 iShChinaLarge-Cap FXI 30.76 1.55–12.8
Bnp Paribas S.A. BNP 7.375 Aug. 19, ’49 571 –89 653 ... ... CnsStapleSelSector XLP 50.99 1.03 1.0
High 0.5625 0.5625 0.5900 0.3100 iShRussellMCGrowth IWP 84.62 2.06 –7.9
DBGoldDoubleLgETN DGP 23.33 1.08 28.6
Barclays BACR 6.625 Sept. 15, ’49 846 –88 998 ... ... Low 0.3000 0.3400 0.3500 0.0100 MktVectorsBiotech BBH 103.68 2.31 1.2
DBGoldDoubleShrt DZZ 6.64 –1.78–25.1
Williams WMB 5.750 June 24, ’44 779 –72 883 15.69 4.53 Bid 0.3500 0.3600 0.5500 0.0300 DBEF 24.74
MktVectorsGoldMin GDX 17.82 3.54 29.9
DeutscheXMSCIEAFE 1.64 –8.9
Macquarie Infrastructure MIC 2.875 July 15, ’19 50 –69 132 60.39 4.92 Offer 0.4000 0.3800 0.5600 0.0500 MktVectorsOilSvcs OIH 23.92 4.23 –9.6
EnSelectSectorSPDR XLE 57.66 3.28 –4.4
Devon Energy DVN 5.850 Dec. 15, ’25 533 –67 511 20.33 –4.37 MktVectorsPharm PPH 59.03 1.85 –2.5
FinSelSectorSPDR XLF 21.10 1.34–11.5
Treasury bill auction GuggenheimSP500EqW RSP 72.27 1.85 –5.7 MktVectorsRetail RTH 72.00 1.48 –7.4
…And spreads that widened the most 4 weeks 0.270 0.265 0.295 0.000 HealthCareSelSect XLV 66.41 1.27 –7.8 MktVectorsSemi SMH 49.26 2.39 –7.5
13 weeks 0.300 0.315 0.350 0.000 XLI 51.45 PwrShrs QQQ QQQ 102.50 2.26 –8.4
International Business Machines IBM 4.700 Feb. 19, ’46 202 480 n.a. 126.10 2.74 IndSelSectorSPDR 1.54 –2.9
26 weeks 0.410 0.420 0.585 0.065 CIU 107.56 PS SP500LoVoltlPrt SPLV 37.86 0.72 –1.8
iShIntermCredBd –0.10 0.3
Suncor Energy SUCN 6.850 June 1, ’39 523 35 495 ... ... CSJ 104.64 SPDRBarclaysHiYdBd JNK 32.29 0.75 –4.8
iSh1-3YCreditBond –0.08 0.0
ConocoPhillips COP 5.750 Feb. 1, ’19 380 25 350 33.91 3.51 Secondary market iSharesTIPSBondETF TIP 110.95 –0.17 1.2 SchwIntlEqty SCHF 25.52 1.88 –7.4
Capital One NA COF 1.500 March 22, ’18 175 23 n.a. … … IEI 125.56 SchwUS BrdMkt SCHB 45.92 1.68 –6.4
Fannie Mae iSh3-7YTreasuryBd –0.14 2.4
IEFA 50.11 SchwUS LrgCap SCHX 45.68 1.69 –6.0
Nabors Industries NBR 5.000 Sept. 15, ’20 1098 15 n.a. 7.16 13.65 iShCoreMSCIEAFEETF 1.83 –7.9
30-year mortgage yields IEMG 37.25 SPDR DJIA Tr DIA 164.93 1.68 –5.2
Diamond Offshore Drilling DO 4.875 Nov. 1, ’43 631 14 n.a. 18.70 7.78 iShCoreMSCIEmgMk 1.97 –5.4
3.114 3.149 3.750 2.979 IVV 193.83 SPDR GldTr GLD 115.48 0.62 13.8
30 days iShCoreS&P500ETF 1.66 –5.4
Avalonbay Communities AVB 3.450 June 1, ’25 150 13 n.a. 167.76 1.45 3.153 3.191 3.788 2.998 IJH 130.66 SPDR S&PMdCpTr MDY 238.36 1.57 –6.2
60 days iShCoreS&PMdCp 1.52 –6.2
Hewlett Packard Enterprise HPE 4.400 Oct. 15, ’22 403 13 370 13.02 5.60 iShCoreS&PSmCpETF IJR 101.60 1.22 –7.7 SPDR S&P 500 SPY 192.88 1.63 –5.4
Other short-term rates iShCoreUSAggBd AGG 109.44 –0.05 1.3 SPDR S&P Div SDY 73.90 0.97 0.4
High-yield issues with the biggest price increases… iShSelectDividend DVY 75.96 1.17 1.1 TechSelectSector XLK 40.79 2.05 –4.8
Bond Price as % of face value Stock Perfomance Week 52-Week iSharesGold IAU 11.64 0.61 13.8 UtilitiesSelSector XLU 45.76 –0.20 5.7
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg Latest ago high low iShiBoxx$InvGrCpBd LQD 112.92 –0.03 –1.0 VangdInfoTch VGT 100.06 2.46 –7.6
iShiBoxx$HYCpBd HYG 77.42 0.82 –3.9 VangdSmCapValue VBR 91.69 1.43 –7.2
Energen EGN 4.625 Sept. 1, ’21 70.250 11.51 n.a. 24.03 4.93 Call money VangdHlthCr VHT 120.29 1.57 –9.5
iShMBSETF MBB 109.22 0.06 1.4
Tenet Healthcare THC 6.750 June 15, ’23 96.750 9.13 88.250 25.05 6.23 2.25 2.25 2.25 2.00 ACWI 52.33 VangdDivApp VIG 76.30 1.26 –1.9
iShMSCIACWIETF 1.81 –6.3
Whiting Petroleum WLL 6.500 Oct. 1, ’18 32.750 4.50 n.a. 5.37 12.82 iSharesMSCIEAFESC SCZ 45.88 2.05 –8.1 VanguardFTSEDevMk VEA 33.97 1.80 –7.5
Zf North America Capital ZFFNGR 4.500 April 29, ’22 99.420 4.42 93.375 ... ... Commercial paper iSharesMSCIEAFEETF EFA 54.26 1.72 –7.6 VanguardFTSEEmgMk VWO 30.96 2.08 –5.4
30 to 270 days n.q. ... ... ... iShMSCIEmgMarkets EEM 30.56 1.97 –5.1 VanguardFTSEEurope VGK 46.34 2.09 –7.1
Freeport–McMoRan FCX 4.000 Nov. 14, ’21 56.500 4.25 50.500 7.16 12.40
iShMSCIEurozoneETF EZU 32.46 1.00 –7.4 VangdAllWldxUS VEU 40.36 1.89 –7.0
Icahn Enterprises IEP 6.000 Aug. 1, ’20 89.500 4.00 86.500 54.25 6.35 Commercial paper (AA financial) VUG 98.97
iShMSCIGermanyETF EWG 23.94 2.13 –8.6 VangdGrowth 1.99 –7.0
Intesa Sanpaolo Spa ISPIM 7.700 Sept. 17, ’49 89.000 4.00 86.000 ... ... 90 days 0.55 0.54 0.64 0.06 EWJ 10.88 VangdHiDivYld VYM 65.29 1.26 –2.2
iShMSCIJapanETF 0.83–10.2
BioMarin Pharmaceutical BMRN 0.750 Oct. 15, ’18 111.980 3.99 103.923 77.81 4.78 iShMSCIUSAMinVol USMV 41.26 0.93 –1.3 VngdInter-Term BIV 84.68 –0.25 2.0
Notes on data: iShNasdaqBiotech IBB 266.32 2.94–21.3 VangIntrCorpBd VCIT 83.92 –0.14 –0.2
…And with the biggest price decreases U.S. prime rate is effective December 17, 2015. iShNatlAMTFrMuniBd MUB 111.78 –0.13 1.0 VangdLgCap VV 88.05 1.71 –5.8
iShRussell1000Gwth IWF 93.22 1.85 –6.3 VangdMdCap VO 110.66 1.87 –7.9
SM Energy SM 6.500 Jan. 1, ’23 45.062 –4.19 56.000 10.15 8.56 Discount rate is effective December 17, 2015.
U.S. prime rate is the base rate on corporate iShRussell1000ETF IWB 106.53 1.72 –6.0 VangdReit VNQ 74.25 0.86 –6.9
Laredo Petroleum LPI 6.250 March 15, ’23 58.000 –2.50 64.000 5.07 5.85 loans posted by at least 70% of the 10 largest iShRussell1000Val IWD 92.25 1.56 –5.7 VanguardS&P500 VOO 176.86 1.64 –5.4
ADT ADT 6.250 Oct. 15, ’21 97.750 –1.50 98.750 39.59 –0.13 U.S. banks; Other prime rates aren’t directly
IWO 120.85 VangdShrtTrm BSV 80.26 –0.05 0.9
comparable; lending practices vary widely by iShRussell2000Gwth 2.10–13.2
Hub International HBGCN 7.875 Oct. 1, ’21 87.212 –1.04 87.000 ... ... iShRussell2000ETF IWM 100.43 1.57–10.8 VangShrtCorpBd VCSH 78.84 0.09 –0.2
location; DTCC GCF Repo Index is Depository
Telecom Italia Capital S.A. TITIM 7.175 June 18, ’19 111.500 –0.95 110.066 ... ... Trust & Clearing Corp.'s weighted average for iShRussell2000Val IWN 84.40 1.09 –8.2 VangdSmCap VB 100.61 1.78 –9.1
Crown Castle International CCI 5.250 Jan. 15, ’23 104.460 –0.79 105.490 84.68 0.81 overnight trades in applicable CUSIPs. Value iShRussell3000ETF IWV 112.67 1.73 –6.4 VangdTtlBndMkt BND 81.86 –0.02 1.4
traded is in billions of U.S. dollars. Futures on the iShRussellMid-Cap IWR 148.54 1.78 –7.3 VanguardTtlIntlStk VXUS 42.03 1.94 –6.8
Alliance One International AOI 9.875 July 15, ’21 75.000 –0.75 77.500 10.96 8.95 DTCC GCF Repo Index are traded on NYSE Liffe
iShRussellMCValue IWS 64.20 1.71 –6.5 VangdTtlStock VTI 97.67 1.65 –6.4
Consol Energy CNX 5.875 April 15, ’22 62.000 –0.75 63.625 8.87 12.42 US.
VT 53.69
iShS&PMC400Growth IJK 149.56 1.44 –7.1 VangdTotlWrld 1.96 –6.8
Sources: Federal Reserve; Bureau of Labor
*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. Statistics; DTCC; SIX Financial Information; iShS&P500Growth IVW 108.64 1.83 –6.2 VanguardValueETF VTV 77.62 1.49 –4.8
Note: Data are for the most active issue of bonds with maturities of two years or more General Electric Capital Corp.; Tullett Prebon iShS&P500ValueETF IVE 84.43 1.61 –4.6 WisdomTreeEurope HEDJ 49.81 2.49 –7.4
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group Information, Ltd. iSharesUSPreferred PFF 37.63 1.13 –3.1 WisdomTreeJapanHdg DXJ 41.99 0.99–16.2
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Thursday, February 18, 2016 | C7

BIGGEST 1,000 STOCKS

WSJ.com/stocks

How to Read the Stock Tables
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed
securities. Prices are composite quotations that include primary market trades as well as trades
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock
Exchange, ISE and BATS.
The list comprises the 1,000 largest companies based on market capitalization.
Underlined quotations are those stocks with large changes in volume compared with the issue’s
average trading volume.
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous
closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most
recent four quarters.
FD-First day of trading.
h-Does not meet continued
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Wednesday, February 17, 2016
Net
Stock Sym Close Chg
NYSE
ABBADR ABB 17.86
ADTCorp. ADT 39.59
AES AES 9.62
Aflac AFL 59.07
AGLResources GAS 64.51
AT&T T 36.64
AbbottLabs ABT 38.45
AbbVie ABBV 55.01
AccentureClA ACN 99.01
AcuityBrands AYI 194.84
AdvanceAuto AAP 143.41
AdvSemiEnggADR ASX 5.64
AegonADR AEG 5.03
AerCapHoldings AER 30.97
Aetna AET 105.46
AffiliatedManagers AMG 130.60
AgilentTechs A 37.87
AgnicoEagleMines AEM 33.90
Agrium AGU 84.53
AirProducts&Chems APD 132.51
Airgas ARG 140.85
AlaskaAirGroup ALK 71.77
Albemarle ALB 52.77
AlcatelLucentADR ALU 3.31
Alcoa AA 8.52
Alere ALR 53.25
AlexREEq ARE 74.34
AlibabaGroupADR BABA 66.38
Alleghany Y 465.00
Allegion ALLE 58.81
Allergan AGN 283.20
AllianceData ADS 192.41
AllncBrnstnHldg AB 19.00
AlliantEnergy LNT 66.42
Allstate ALL 65.02
AllyFinancial ALLY 17.07
AltriaGroup MO 60.40
AlumofChinaADR ACH 8.11
AmbevADR ABEV 4.58
Ameren AEE 45.31
AmericaMovilADR AMX 13.47
AmCampus ACC 43.05
AEP AEP 61.10
AmericanExpress AXP 53.61
AmericanFinancial AFG 66.56
AmericanIntl AIG 52.67
AmericanTowerREIT AMT 86.19
AmericanWaterWorks AWK 64.71
Amerigas APU 40.02
AmerprsFncl AMP 84.97
AmeriSrcBrg ABC 87.49
Ametek AME 46.01
AmphenolClA APH 52.02
AnadarkoPetroleum APC 40.50
AngloGoldAshADR AU 10.70
AnheuserBuschADR BUD 117.45
AnnalyCap NLY 9.90
AnteroResources AR 26.25
Anthem ANTM 127.56
Aon AON 95.00
Apache APA 40.06
ApartmtInv AIV 36.25
ApolloGlobalMgmtA APO 14.66
Aptargroup ATR 73.37
AquaAmerica WTR 31.06
Aramark ARMK 30.89
ArcelorMittalADR MT 3.65
ArcherDan ADM 33.40
ArrowElec ARW 56.13
Ashland ASH 94.19
Assurant AIZ 69.25
AstraZenecaADR AZN 30.06
AtmosEnergy ATO 69.64
Autoliv ALV 107.90
AutoNation AN 49.66
AutoZone AZO 754.18
Avalonbay AVB 167.76
Avangrid AGR 41.31
AveryDennison AVY 64.20
Aviva ADR AV 12.75
Avnet AVT 40.77
AxaltaCoatingSys AXTA 25.03
AxisCapital AXS 53.28
BB&T BBT 32.92
BCE BCE 42.37
BHPBillitonADR BHP 24.12
BHPBillitonADR BBL 21.34
BPADR BP 29.95
BRFADR BRFS 13.21
BTGroupADR BT 33.26
BakerHughes BHI 42.49
Ball BLL 67.12
Cash Prices| WSJ.com/commodities Wednesday, Feb. 17, 2016
These prices reflect buying and selling of a variety of actual or “physical”
commodities in the marketplace—separate from the futures price on an
exchange, which reflects what the commodity might be worth in future
months.
Net Net Net Net Net Net
Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
FNFVGroup FNFV 9.28 0.30 L-3Communications LLL 117.14 0.94 Perrigo PRGO 145.17 3.96 s Sysco SYY 44.38 0.62 LamarAdvertisingA LAMR 54.32 1.15
FidelityNtlInfo FIS 59.54 0.89 LabCpAm LH 105.80 1.30 PetroChinaADR PTR 64.77 3.28 TEConnectivity TEL 56.74 1.24 NASDAQ LibertyBroadbandA LBRDA 47.05 1.12
58.comADR WUBA 52.09 2.29 LasVegasSands LVS 46.32 0.50 PetroleoBrasilADR PBR 3.40 0.34 TEGNA TGNA 24.24 1.03 AMCNetworks A AMCX 65.55 2.01 LibertyBroadbandC LBRDK 46.51 1.26
FirstDataClA FDC 10.67 0.45 LearCorp LEA 106.33 2.43 PetroleoBrasilADRA PBR/A 2.35 0.21 TELUS TU 28.06 0.13 Ansys ANSS 86.18 2.13 LibertyGlobalClA LBTYA 37.31 2.03
FirstRepublicBank FRC 60.87 1.06 Leggett&Platt LEG 43.47 0.49 Pfizer PFE 29.63 -0.18 TERNIUMADR TX 12.95 0.73 ARMHoldingsADR ARMH 39.87 1.36 LibertyGlobalClC LBTYK 36.02 2.06
FirstEnergy FE 32.27 -1.19 LennarClA LEN 40.52 0.22 s PhilipMorrisIntl PM 91.23 1.11 TJX TJX 71.79 0.42 ARRISInternational ARRS 24.24 0.50 LibertyGlbLiLACAWi LILA 33.99 0.83
FleetCorTechs FLT 127.50 2.89 LennarClB LEN/B 32.95 0.14 PhilippineLgDisADR PHI 50.00 1.34 TaiwanSemiconADR TSM 23.64 0.30 ASMLHolding ASML 86.28 2.30 LibertyGlbLiLACClC LILAK 36.31 0.77
listing standards vj-In bankruptcy or Flowserve FLS 43.19 1.26 LennoxIntl LII 123.00 3.25 Phillips66 PSX 80.59 2.34 Target TGT 72.10 0.60 t AcadiaHealthcare ACHC 56.84 1.84 LibertyInteractQVC QVCB 24.68 -0.82
lf-Late filing receivership or being Fluor FLR 46.43 1.44 LeucadiaNational LUK 15.23 0.44 s PiedmontNaturalGas PNY 59.30 -0.07 TaroPharm TARO 134.69 -0.23 ActivisionBliz ATVI 29.45 0.03 LibertyInteractQVC QVCA 24.90 0.66
q-Temporary exemption from reorganized under the
Nasdaq requirements. Bankruptcy Code, or securities FomentoEconMexADR FMX 92.48 1.68 Level3Comm LVLT 49.09 1.12 PinnacleFoods PF 41.01 0.17 TataMotorsADR TTM 22.96 0.83 AdobeSystems ADBE 81.85 2.97 LibertyVenturesA LVNTA 36.73 0.72
t-NYSE bankruptcy assumed by such companies. FootLocker FL 67.66 -0.02 LibertyPropertyTr LPT 28.47 -0.18 PinnacleWestCap PNW 66.83 -0.42 TecoEnergy TE 27.24 0.05 AkamaiTechnologies AKAM 53.42 0.87 LibertyMediaA LMCA 33.64 0.96
v-Trading halted on primary FordMotor F 12.27 0.40 EliLilly LLY 74.68 1.35 PioneerNaturalRscs PXD 124.55 9.10 TelecomItaliaADR TI/A 7.71 0.30 AlexionPharm ALXN 148.60 6.21 LibertyMediaC LMCK 33.00 0.73
market. ForestCityRealtyA FCE/A 17.91 0.24 LincolnNational LNC 35.88 1.96 PlainsAllAmPipe PAA 19.67 1.45 TelecomItaliaADR TI 9.43 0.34 AlignTechnology ALGN 63.10 1.23 LinearTechnology LLTC 43.65 0.92
ForestCityRealtyB FCE/B 17.87 0.36 LinkedInA LNKD 111.01 5.01 PlumCrk PCL 38.61 0.64 Teleflex TFX 135.24 1.98 Alkermes ALKS 34.89 1.58 LinnEnergy LINE 0.68 0.31
FortBrandsHomeSec FBHS 49.53 1.78 LloydsBankingADR LYG 3.63 0.11 PolarisIndustries PII 86.81 3.30 TelefonicaBrasADR VIV 9.32 0.31 AlnylamPharm ALNY 65.70 1.80 lululemonathletica LULU 60.51 0.71
Franco-Nevada FNV 52.99 0.62 LockheedMartin LMT 212.74 3.74 PostHoldings POST 67.69 -0.44 TelefonicaADR TEF 10.56 0.35 AlphabetClA GOOGL 731.97 14.33 Markit MRKT 27.92 0.54
Net Net FranklinResources BEN 34.26 0.41 Loews L 37.39 0.86 PotashCp POT 17.01 1.35 TelekmIndonesiaADR TLK 50.33 0.79 AlphabetClC GOOG 708.40 17.40 MarriottInt A MAR 66.68 1.62
Stock Sym Close Chg Stock Sym Close Chg Freeport-McMoRan FCX 7.16 0.79 Lowe's LOW 68.00 0.57 Praxair PX 104.50 0.50 TenarisADR TS 21.69 0.92 Amazon.com AMZN 534.10 13.00 MarvellTch MRVL 9.30 0.18
FreseniusMedADR FMS 43.09 0.80 LuxotticaGroupADR LUX 57.47 0.33 PrincipalFinancial PFG 37.56 1.10 Tesoro TSO 70.52 0.09 Amdocs DOX 58.09 0.67 Mattel MAT 31.91 1.56
BancoBilbaoVizADR BBVA 6.54 0.24 CocaCola KO 43.49 0.13 Gallagr AJG 39.39 0.39 LyondellBasell LYB 79.10 1.17 Procter&Gamble PG 82.45 0.98 TesoroLogistics TLLP 41.53 0.67 Amerco UHAL 344.01 1.92 MaximIntProducts MXIM 33.66 0.24
BancodeChileADR BCH 61.70 0.46 Coca-ColaFemsaADR KOF 72.80 0.75 Gap GPS 25.45 0.93 M&T Bnk MTB 108.53 -0.35 ProgressiveCorp PGR 32.06 0.41 TevaPharmADR TEVA 57.67 1.54 AmericaMovilClAADR AMOV 13.43 0.48 Medivation MDVN 32.28 0.70
BcoSantChileADR BSAC 17.78 0.57 CocaColaEnt CCE 49.06 0.29 Gartner IT 82.78 1.28 MGMResortsIntl MGM 20.07 0.92 ProgressWasteSol BIN 29.32 0.26 Textron
BancoSantanderADR SAN 4.17 0.18 ColgatePalmolive CL 67.06 1.25 TXT 33.30 0.46 AmerAirlinesGrp AAL 39.34 0.73 MelcoCrownEntADR MPEL 15.75 0.59
0.38 Gazit-Globe GZT 7.34 0.14 MPLX
-0.05 BanColombiaADR CIB 29.86 0.95 ColumbiaPipeline CPGX 17.46 0.64 MPLX 22.45 1.51 Prologis PLD 37.46 0.30 ThermoFisherSci TMO 130.70 3.28 AmeriCapAg AGNC 17.83 0.08 MercadoLibre MELI 98.24 2.48
GenDynam GD 135.03 3.52 MSCI MSCI 70.06 1.70 PrudentialFin PRU 66.60 3.16 ThomsonReuters TRI 36.55 0.73 Amgen AMGN 151.07 3.92 MichaelsCos. MIK 22.87 0.96
0.24 BankAm BAC 12.56 0.31 Comerica CMA 33.87 -0.38 GenElec GE 29.34 0.48 Macerich MAC 75.79 0.97 PrudentialADR PUK 35.57 1.66 3M
BkMntrl BMO 54.47 1.79 ConAgraFoods CAG 41.70 -0.07 MMM 156.62 1.09 AmTrustFinSvcs AFSI 25.60 0.15 MicrochipTech MCHP 42.66 1.03
0.94 GeneralGrowthProp GGP 25.72 0.04 MacquarieInfr MIC 60.39 2.83 PublicServiceEnt PEG 41.88 -0.19 Tiffany
BankNY Mellon BK 34.91 0.36 ConchoResources CXO 95.51 7.37 TIF 65.62 2.38 AnalogDevices ADI 52.73 0.66 MicronTechnology MU 11.43 0.62
0.43 GeneralMills GIS 58.14 0.48 Macys
-0.01 BkNovaScotia BNS 41.02 1.36 ConocoPhillips COP 33.91 1.15 M 41.10 0.63 PublicStorage PSA 246.11 7.93 TimeWarnerCable TWC 187.68 1.59 Apple AAPL 98.12 1.48 Microsoft MSFT 52.42 1.33
GeneralMotors GM 29.27 0.69 MagelnPtnrs MMP 65.19 3.66 PulteGroup PHM 16.61 -0.06 TimeWarner TWX 64.69 1.36 AppliedMaterials AMAT 17.14 0.42 Middleby MIDD 86.57 1.65
0.46 BarclaysADR BCS 9.54 0.27 ConEd ED 69.97 -1.00 Genpact G 25.74 0.47 MagnaInt MGA 34.99 1.32 Qihoo360Technology QIHU 71.71 1.49 Toll Bros
Bard CR BCR 188.06 0.62 ConstBrands A STZ 142.01 2.72 TOL 25.23 -0.48 ArchCapitalGroup ACGL 68.19 -0.42 MondelezIntlClA MDLZ 39.81 0.69
1.50 GenuineParts GPC 90.02 0.41 Mallinckrodt MNK 67.33 3.11 QuestDiag DGX 64.57 1.35 Torchmark TMK 52.28 1.19 AthenaHealth ATHN 128.83 1.57 MonsterBeverage MNST 125.44 1.13
2.10 BarrickGold ABX 11.89 0.30 ConstBrands B STZ/B 141.65 4.75 Gildan GIL 24.74 0.90 ManpowerGroup MAN 75.77 0.70 Questar
Baxalta BXLT 40.11 1.11 ContinentalRscs CLR 19.55 1.09 STR 24.94 -0.01 TorontoDominionBk TD 38.34 0.97 AtlassianClA TEAM 23.35 1.17 Mylan MYL 46.27 3.12
8.95 GlaxoSmithKlineADR GSK 39.40 0.19 ManulifeFinancial MFC 13.05 1.09 QuintilesTransnat Q
-2.59 BaxterIntl BAX 38.21 0.80 Cooper COO 139.33 1.44 63.17 1.38 TotalADR TOT 43.83 1.19 Autodesk ADSK 46.67 1.78 NXP Semi NXPI 70.35 0.91
GlblPymts GPN 59.19 1.09 MarathonOil MRO 7.41 0.01 RELXADR RENX 16.41 0.36 TotalSystemSvcs TSS 41.85 1.02 ADP ADP 85.33 1.55 s Nasdaq NDAQ 62.96 1.30
0.41 BectonDickinson BDX 144.11 1.99 CoreLabs CLB 105.83 4.16 Goldcp GG 14.93 0.14 MarathonPetroleum MPC 32.96 0.42 RELXADR RELX 17.45 0.34 ToyotaMotorADR TM 108.13 -0.08 B/EAerospace BEAV 41.36 0.69 NetApp
0.27 Bemis BMS 47.79 -0.13 Corning GLW 18.95 0.31 NTAP 23.55 0.46
GoldmanSachs GS 150.94 1.92 s MarineHarvestADR MHG 14.35 0.94 RPM RPM 39.51 0.30 TransCanada TRP 36.45 1.15 BaiduADR BIDU 163.53 6.01 NeteaseADR NTES 155.96 5.32
1.82 Berkley WRB 51.83 0.02 CotyClA COTY 28.97 1.97 GraceWR GRA 69.34 0.89 Markel
BerkHathwy A BRK/A 1959032438.00 Credicorp BAP 113.10 2.75 MKL 844.00 10.12 RalphLaurenA RL 89.24 0.91 TransdigmGrp TDG 207.43 2.19 BedBath BBBY 45.73 1.12 Netflix NFLX 94.76 5.71
3.28 Grainger GWW 216.36 2.39 Marsh&McLennan MMC 57.37 0.87 RangeResources RRC 26.84 0.80 TravelersCos TRV 109.18 1.81 Biogen
BerkHathwy B BRK/B 130.26 1.70 CreditSuisseADR CS 13.68 0.12 BIIB 265.63 9.11 NewsCorpClA NWSA 11.00 0.06
3.98 GreatPlainsEnergy GXP 28.58 -0.03 MrtnMarMat MLM 138.91 3.50 RayJamFnl RJF
0.79 BestBuy BBY 30.05 0.55 CrescentPntEnrg CPG 11.86 1.11 43.31 1.09 TreeHouseFoods THS 82.85 0.96 BioMarinPharm BMRN 77.81 3.55 NewsCorpClB NWS 11.60 0.06
GpoAeroportuarADR PAC 82.02 1.63 Masco MAS 27.23 0.80 Raytheon RTN 121.68 0.87 TurkcellIletismADR TKC 9.27 0.27 BlackBerry BBRY 7.19 0.24 NorthernTrust NTRS 59.61 1.36
-0.22 BlackKnightFinSvcs BKFS 29.38 -0.09 CrestwoodEquity CEQP 11.53 1.63 GpoAvalAccionesADR AVAL 6.51 0.22 MasterCard MA 87.21 1.03
1.51 BlackRock BLK 319.88 5.41 CrownCastl CCI 84.68 0.68 RealogyHoldings RLGY 31.19 1.59 TurquoiseHillRscs TRQ 2.14 0.15 Broadcom AVGO 130.68 4.44 NorwegianCruise NCLH 42.83 2.27
GpFinSantandMexADR BSMX 7.88 0.44 s McCormick MKC 91.26 0.88 RealtyIncome O TWTR 17.46 1.10 CA CA 28.81 0.45 NuanceComms NUAN 18.35 0.70
1.16 BlackstoneGroup BX 26.63 0.66 CrownHoldings CCK 45.82 0.22 59.81 -0.01 Twitter
GrupoTelevisaADR TV 25.15 0.99 McCormickVtg MKC/V 91.22 0.99
0.37 BlockHR HRB 34.68 0.09 CubeSmart CUBE 29.36 0.82 RedHat RHT 66.34 2.50 TycoInternational TYC 34.95 0.75 CBOE Holdings CBOE 61.80 -0.32 NVIDIA NVDA 27.66 0.67
HCAHoldings HCA 67.05 1.45 McDonalds MCD 118.64 -0.54
2.17 BdwlkPipePtnr BWP 12.46 1.03 Cummins CMI 97.53 -0.64 RegencyCtrs REG 70.76 0.09 TylerTechnologies TYL 146.74 4.92 CDKGlobal CDK 43.30 0.41 OReillyAuto ORLY 254.62 -1.14
HCP HCP 27.37 0.45 McGrawHillFin MHFI 88.87 1.55
0.45 Boeing BA 116.34 3.74 DDR Corp DDR 16.09 -0.16 RegionsFinancial RF 7.82 -0.02 s TysonFoodsClA TSN 62.41 0.60 CDW CDW 37.13 0.87 OldDominionFreight ODFL 62.50 0.03
HDFCBankADR HDB 55.80 1.17 McKesson MCK 155.57 2.98
0.08 BorgWarner BWA 33.59 1.19 DTEEnergy DTE 84.22 -0.32 ReinsuranceGrp RGA 88.29 1.39 UBSGroup UBS 15.24 0.33 CH Robinson CHRW 70.84 -0.37 OpenText OTEX 50.54 2.18
HP HPQ 10.08 0.27 MeadJohnNutr MJN 74.99 2.46 UDR UDR 33.65 -0.21 CMEGroupClA CME 92.15 1.44 Paccar PCAR 52.05 0.69
0.40 BostonProperties BXP 111.97 1.68 Danaher DHR 87.07 0.58 RelianceStl RS 60.47 1.50
HSBCHoldingsADR HSBC 32.72 0.47 Mednax MD 64.81 -0.16 RenaissanceRe RNR 113.51 0.28 UGI UGI 36.26 0.09 CSX CSX 24.83 0.07 PaneraBreadClA PNRA 207.03 3.61
0.27 BosSci BSX 17.57 0.41 Darden DRI 61.54 2.00 Halliburton HAL 31.40 1.46 Medtronic MDT
75.60 0.86 s RepublicServices RSG 45.23 -0.20 UltraparPartADR UGP 15.06 0.54 CadenceDesign CDNS 20.95 0.34 Patterson PDCO 44.24 0.67
0.34 BristolMyers BMY 63.92 1.74 DaVitaHlthcrPtrs DVA 64.09 1.45 Hanesbrands HBI 27.88 0.41 Merck MRK 50.60 0.82 ResMed RMD 59.25 0.22 UnderArmour A UA 82.97 3.03 Carlyle CG 14.54 1.12 Paychex PAYX 50.61 0.62
0.09 BrixmorPropertyGrp BRX 23.16 -0.06 Deere DE 81.43 1.62 HarleyDavidson HOG 41.37 1.67 MetLife
BdridgeFnlSol BR 55.43 0.35 DelhaizeGroupADR DEG 25.58 0.25 MET 39.27 1.25 RestaurantBrands QSR 34.51 0.69 UnileverADR UN 43.29 0.50 CaseysGenStores CASY 105.02-11.81 PayPalHoldings PYPL 36.36 0.90
2.10 HarmanIntlInds HAR 76.71 3.65 MettlerToledo MTD
0.31 BrookfieldMgt BAM 31.10 1.47 DelphiAutomotive DLPH 66.01 2.89 321.43 8.74 ReynoldsAmer RAI 48.97 0.69 UnileverADR UL 43.80 0.42 Celgene CELG 105.31 0.82 People'sUnitedFin PBCT 14.68 -0.15
Harris HRS 74.26 0.80 MichaelKorsHldgs KORS
-1.25 BrookfieldInfr BIP 35.21 0.62 DeltaAir DAL 46.10 1.52 52.49 1.73 RioTinto ADR RIO 27.63 0.79 UnionPacific UNP 79.96 0.59 t Cerner CERN 52.81 -2.65 PilgrimPride PPC 23.38 0.47
HrtfrdFnl HIG 41.91 0.74
4.92 Brown&Brown BRO 31.48 0.09 DeutscheBank DB 17.93 0.77 HealthNet HNT 61.95
MidAmApt MAA 88.85 0.53 RiteAid RAD 7.87 0.04 UnitedContlHldgs UAL 50.61 1.74 CharterComms CHTR 171.91 2.98 Premier PINC 32.47 0.30
0.79 CheckPointSoftware CHKP 81.39 0.99 PricelineGroup PCLN 1235.56124.88
0.50 BrownFormanClA BF/A 109.23 2.47 t DevonEnergy DVN 20.33 -0.93 MindrayMedADR MR 27.32 0.03 RobHalfIntl RHI 37.96 -0.11 UnitedMicroADR UMC 2.06 0.06
Helmerich&Payne HP 52.92 4.28 MitsubishiUFJADR MTU
-0.55 BrownFormanClB BF/B 99.84 1.62 DiageoADR DEO 104.98 1.18 4.31 0.04 Rockwell ROK 102.25 1.99 UtdParcel B UPS 98.30 -0.26 s CincinnatiFin CINF 62.45 0.34 Qiagen QGEN 21.31 0.55
Hershey HSY 91.61 1.22 MizuhoFinancialADR MFG
0.45 BuckeyePartners BPL 61.62 3.34 DicksSprtgGds DKS 39.82 0.78 2.97 0.03 RockwellCollins COL 84.30 1.50 UnitedRentals URI 48.18 0.62 Cintas CTAS 83.60 -0.38 Qorvo QRVO 41.59 0.81
Hess HES 43.47 2.63 MobileTeleSysADR MBT 7.40 0.22 CiscoSystems CSCO 26.46 0.62 Qualcomm QCOM 48.41 1.68
0.06 Bunge BG 50.40 -1.76 DigitalRealtyTrust DLR 79.77 -0.63 RogerComm B RCI 35.53 0.75 US Bcp USB 40.12 -0.07
HewlettPackardEnt HPE 13.02 0.69 MohawkIndustries MHK 163.07 3.55 RollinsInc ROL 8.56 1.07 CitrixSystems CTXS 69.22 3.55 QunarCaymanIslADR QUNR 37.37 1.37
0.10 CBRE Group CBG 25.84 1.52 DiscoverFinSvcs DFS 46.44 0.77 26.93 0.10 US Steel X
HiltonWorldwide HLT 19.70 0.71 MolsonCoors B TAP 86.24 1.58 RoperTechnologies ROP
0.14 CBSClA CBS/A 51.05 1.55 Disney DIS 95.50 2.59 169.71 2.42 UnitedTech UTX 88.12 2.28 CognizantTechSolns CTSH 56.61 1.60 RandgoldRscsADR GOLD 87.15 2.74
HollyFrontier HFC 31.07 0.20 Monsanto MON 89.64 1.70 RoyalBkCanada RY UnitedHealthGroup UNH 118.30 3.15 Comcast A CMCSA 57.70 0.22 RegenPharm REGN 397.26 5.50
0.16 CBSClB CBS 46.56 1.64 DollarGeneral DG 74.27 1.23 51.71 1.70
HomeDepot HD 121.21 1.78 Moodys MCO 85.72 2.37 RoyalBkScotlandADR RBS 7.33 0.19 UniversalHealthB UHS 107.74 1.64 CommScopeHldg COMM 23.09 0.91 RossStores ROST 55.07 0.07
-0.27 CFIndustries CF 31.70 0.56 DominionResources D 69.77 0.62 HondaMotorADR HMC 26.24 0.31 MorganStanley MS 24.23 0.51 Copart CPRT 35.93 0.40
0.43 CGI Gp A GIB 41.64 0.97 Dominos DPZ 112.95 1.87 RoyalCaribbean RCL 73.30 0.79 UnumGroup UNM 27.51 0.93 RyanairHoldingsADR RYAAY 82.69 3.69
Honeywell HON 106.13 1.18 VER 7.64 0.15 CoStarGroup CSGP 170.09 7.62 SBACommunications SBAC 91.66 1.13
-0.47 CIT Grp CIT 28.15 0.85 DouglasEmmett DEI 25.28 -0.09 Mosaic MOS 25.30 1.76 RoyalDutchADRA RDS/A 46.11 1.65 VEREIT
HormelFoods HRL 44.47 0.03 VF VFC 61.21 1.61 CostcoWholesale COST 150.91 1.80 SEIInvestments SEIC 37.29 0.62
0.01 CMSEnergy CMS 39.00 -0.18 Dover DOV 61.65 1.36 MotorolaSolutions MSI 65.05 1.63 RoyalDutchADRB RDS/B 46.21 1.78
DR Horton DHI 24.75 -0.03
0.43 CNAFinancial CNA 31.41 0.16 DowChemical DOW 47.99 1.16 NTTDoCoMoADR DCM 23.51 0.33 SAPADR SAP 76.77 1.03 VISAClA V 72.03 1.07 Ctrip.comIntlADR CTRP 41.39 1.06 SS&CTechs SSNC 57.83 2.11
HostHotels&Resorts HST 14.97 0.13 DISHNetworkClA DISH 46.07 1.92 SVBFinancialGroup SIVB 88.19 0.78
-0.59 CNOOCADR CEO 105.66 4.06 DrPepperSnap DPS 89.33 -2.68 NVR NVR 1581.65 35.15 SINOPECShanghaiADR SHI 40.48 0.40 VailResorts MTN 125.21 1.28
HuanengPowerADR HNP 31.42 0.43
0.61 CRHADR CRH 25.74 0.69 DrReddysLabADR RDY 44.68 1.89 NationalGridADR NGG 68.95 0.01 SKTelecomADR SKM 19.68 0.04 ValeADR VALE 3.06 0.29 Dentsply XRAY 55.91 0.21 Sabre SABR 27.32 1.15
Hubbell HUBB 93.05 0.66 Dexcom DXCM 61.82 2.56 SanDisk SNDK 68.46 0.29
-0.26 CVSHealth CVS 97.69 0.75 DuPont DD 60.60 1.74 NtlOilwellVarco NOV 29.11 1.05 SLGreenRealty SLG 83.69 0.96 ValeantPharmIntl VRX 94.65 3.39
Humana HUM 168.31 1.67 DiamondbackEnergy FANG 70.44 2.47 SeagateTechnology STX 31.97 0.64
-0.44 Cablevision CVC 32.55 -0.14 DukeEnergy DUK 75.50 -0.79 NtlRetailProp NNN 44.78 ... Salesforce.com CRM 63.49 3.77 ValeroEnergy VLO 57.77 0.42
HuntingtonIngalls HII 134.86 0.52
1.21 CabotO&G COG 20.49 1.23 DukeRealty DRE 20.04 0.26 NetSuite N 55.10 1.36 SallyBeauty SBH 31.41 0.91 Valspar VAL 80.35 -0.09 DiscoveryCommsA DISCA 26.71 1.15 SeattleGenetics SGEN 31.61 0.99
HyattHotels H 42.22 1.09
2.05 Calpine CPN 13.09 0.10 EMC EMC 24.98 0.38 NewOrientalEducADR EDU 30.84 -0.24 SanofiADR SNY 39.33 0.52 Vantiv VNTV 50.01 1.20 DiscoveryCommsC DISCK 26.01 0.98 ShireADR SHPG 169.35 8.03
ICICIBankADR IBN 5.52 -0.08 DollarTree DLTR 80.88 2.33 SignatureBank SBNY 131.57 0.45
1.88 CamdenPropertyTr CPT 73.41 -0.17 ENIADR E 27.39 0.99 NY CmntyBcp NYCB 15.52 -0.03 SasolADR SSL 28.37 1.22 VarianMed VAR 78.92 0.89
IHSClA IHS 103.07 4.91
0.03 Cameco CCJ 12.13 0.62 EOG Res EOG 70.82 2.93 Newell NWL 37.43 1.43 SCANA SCG 64.65 -0.13 Ventas VTR 50.48 0.76 DunkinBrands DNKN 44.00 1.07 SiliconwareADR SPIL 7.83 0.13
IMSHealthHoldings IMS 25.41 0.67
1.29 CameronIntl CAM 66.28 0.67 EQT EQT 62.40 2.08 NewmontMining NEM 24.84 0.28 Schlumberger SLB 72.93 1.18 Verizon VZ 50.32 0.08 E Trade ETFC 22.28 0.42 SiriusXMHoldings SIRI 3.56 0.07
INGGroepADR ING 11.70 0.28 EastWestBancorp EWBC 29.83 -0.23 SironaDental SIRO 101.09 0.33
1.41 s CampbellSoup CPB 60.90 1.46 EQTMidstreamPtrs EQM 71.65 2.81 NextEraEnergy NEE 111.43 -0.92 SchwabC SCHW 24.48 0.90 VipshopHldgsADR VIPS 12.53 0.17
Invesco IVZ 27.45 0.75 eBay EBAY 23.22 0.27 SkyworksSolutions SWKS 63.71 2.27
0.21 CIBC CM 66.29 2.19 EastmanChemical EMN 63.85 1.49 Nidec ADR NJ 16.39 0.77 ScrippsNetA SNI 55.91 2.10 VMware VMW 47.91 1.78
ITCHoldings ITC 40.51 1.24 ElectroArts EA 59.84 0.48 Staples SPLS 9.16 0.31
0.77 CanNtlRlwy CNI 57.09 1.52 EatonCorp.PLC ETN 56.01 1.19 IDEX IEX 73.89 NielsenHoldings NLSN 48.41 0.42 SealedAir SEE 43.10 -0.33 VornadoRealtyTrust VNO 82.62 0.20
0.69 EndoInternational ENDP 52.76 1.18 Starbucks SBUX 57.63 1.22
0.07 CndNatRes CNQ 21.75 1.70 Ecolab ECL 109.96 1.31 IllinoisToolWorks ITW 94.93 NikeClB NKE 58.17 0.38 SempraEnergy SRE 95.50 1.06 VoyaFinancial VOYA 29.24 1.07
1.39 Equinix EQIX 290.65 -0.65 SteelDynamics STLD 18.67 0.10
VulcanMaterials VMC 95.34 2.08
1.61 CanPacRlwy CP 129.78 5.03 EcopetrolADR EC 6.89 0.91 InfosysADR INFY 16.48 0.27 NipponTelegraphADR NTT 43.30 1.07 ServiceCp SCI 23.42 0.33 EricssonADR ERIC 9.16 0.10 Stericycle SRCL 111.41 1.94
2.73 CanonADR CAJ 28.60 0.43 EdgewellPersonal EPC 77.24 0.88 Ingersoll-Rand IR NiSource NI 21.35 0.24 ServiceMasterGlb SERV 38.96 -0.02 WABCO Hldg WBC 96.09 3.57 ErieIndemnityClA ERIE
52.45 0.71 97.56 -0.62 Symantec SYMC 19.97 0.42
0.85 CapOneFnl COF 65.18 0.97 EdisonInt EIX 62.53 0.15 NobleEnergy NBL 30.42 1.78 ServiceNow NOW 55.26 3.22 WECEnergyGroup WEC 55.53 -0.20
IngramMicroClA IM 29.65 0.23 Expedia EXPE 110.88 5.44 Synopsys SNPS 43.61 0.65
CardinalHealth CAH 80.98 1.21 s EdwardsLife EW 86.62 2.17 W.P.Carey WPC 54.32 0.40
2.59 Ingredion INGR 100.86 2.23 NokiaADR NOK 6.11 0.18 ShawCom B SJR 17.12 0.27 ExpeditorsIntl EXPD 46.80 0.22 TDAmeritrade AMTD 27.86 0.79
Wabtec WAB 69.49 2.00
-0.04 Carlisle CSL 87.73 3.30 Embraer ADR ERJ 29.56 0.36 ICE ICE 246.39 8.50 NomuraHoldingsADR NMR 4.45 0.09 SherwinWilliams SHW 259.15 0.21 ExpressScriptsHldg ESRX 69.39 0.74
ShinhanFinADR SHG 33.31 0.60 WalMart WMT 66.11 0.21 F5Networks FFIV 91.52 2.01 TFSFinancial TFSL 16.67 0.21
0.82 CarMax KMX 47.95 1.91 EmersonElectric EMR 47.76 1.14 InterContinentlADR IHG 35.52 2.08 Nordstrom JWN 52.25 1.35 s WasteConnections WCN 61.70 0.53 T-MobileUS TMUS 36.85 0.40
-0.58 Carnival CCL 45.92 1.20 EmpresaNacADR EOC 40.10 0.67 IBM IBM 126.10 3.36 NorfolkSouthern NSC 75.77 1.78 SignetJewelers SIG 105.37 1.22 FacebookClA FB 105.20 3.59 TRowePrice TROW 70.26 1.79
WasteMgt WM 54.90 0.11 s Fastenal
-0.34 Carnival ADR CUK 47.52 1.11 EnbridgePtnr EEP 15.97 0.20 IntFlavor IFF 106.08 -0.46 NorthropGrumman NOC 190.06 5.84 SilverWheaton SLW 15.05 0.33 FAST 44.42 0.74
TeslaMotors TSLA 168.68 13.51
Waters WAT 122.13 2.11 FifthThirdBancorp FITB
0.71 Carters CRI 90.89 0.23 Enbridge ENB 33.18 0.62 InternationalPaper IP 35.58 0.48 Novartis ADR NVS 73.65 0.36 SimonPropertyGroup SPG 187.11 0.76 15.41 -0.17
Watsco WSO 125.30 1.09 FirstSolar FSLR 63.47 0.42 TexasInstruments TXN 53.69 1.15
0.33 Caterpillar CAT 67.26 2.05 Encana ECA 3.87 0.27 Interpublic IPG 20.88 0.18 NovoNordiskADR NVO 50.69 1.06 SixFlagsEnt SIX 51.39 1.73 TractorSupply TSCO 86.01 0.47
-0.22 Celanese A CE 59.46 0.77 EngyTrnsfrEqty ETE 6.52 0.46 IronMountain IRM 29.06 0.43 Nucor NUE 40.76 0.58 SkechersUSAClA SKX 32.62 1.23 WeatherfordIntl WFT 6.72 0.10 Fiserv FISV 95.86 1.51
TrimbleNavigation TRMB 23.11 0.74
0.44 CemexADR CX 5.26 0.56 EnergyTransfer ETP 28.98 1.71 IsraelChemicals ICL 4.04 0.06 NuSTAREnergy NS 33.64 2.89 SmithAO AOS 69.00 2.01 WeingartenRealty WRI 35.02 0.20 FlextronInt FLEX 10.60 0.09 TripAdvisor TRIP
65.35 2.03
-0.96 CencosudADR CNCO 6.53 0.28 Enerplus ERF 3.21 0.32 ItauUnibancoADR ITUB 6.30 0.18 OGEEnergy OGE 26.23 0.02 Smith&NephewADR SNN 32.94 0.96 WellsFargo WFC 48.13 -0.11 Fortinet FTNT 26.18 0.76
2.00 CenovusEnergy CVE 10.97 0.50 EnersisAmericasADR ENI 12.79 0.30 JPMorganChase JPM 58.77 0.42 ONEOK OKE 21.73 0.70 Smucker SJM 127.43 -0.27 Welltower HCN 56.53 0.57 FrontierComms FTR 4.42 0.17 21stCenturyFoxClA FOXA 26.47 0.86
Centene CNC 57.62 2.47 Entergy ETR 71.01 0.24 ONEOKPartners OKS 26.39 1.18 SnapOn SNA 143.45 1.57 WestarEnergy WR 45.15 -0.12 21stCenturyFoxClB FOX 26.47 0.84
0.70 JacobsEngineering JEC 38.43 1.22 Garmin GRMN 41.06 5.83
UltaSalon ULTA 158.92 -0.10
-0.79 CenterPointEnergy CNP 18.34 0.24 EntPdtsPtnr EPD 23.10 1.24 JamesHardieADR JHX 11.90 0.20 OccidentalPetrol OXY 70.63 2.62 SOQUIMICH ADR SQM 17.28 1.17 WesternGasEquity WGP 20.89 -0.74 GileadSciences GILD 89.36 -1.79 UltimateSoftware ULTI
165.36 3.42
2.44 CenturyLink CTL 29.73 0.81 Equifax EFX 101.79 2.62 Jarden JAH 52.09 1.26 Och-ZiffCapMgmt OZM 4.20 0.04 SonyADR SNE 22.18 0.61 WesternGasPartners WES 32.19 1.56 Goodyear GT 30.78 0.43 UnitedTherapeutics UTHR
131.62 1.79
0.43 Chevron CVX 88.31 3.50 EquityLife ELS 67.77 0.35 JohnsJohns JNJ 102.50 0.18 OldRepublic ORI 17.99 -0.01 Southern SO 47.83 -0.26 WesternUnion WU 18.49 0.09 Grifols ADR GRFS 15.35 0.33
WestlakeChemical 44.16 0.58 HDSupplyHoldings HDS 25.91 1.62 VeriSign VRSN 81.45 1.77
-3.51 ChinaEasternAirADR CEA 24.04 ... EqResdntl EQR 72.44 0.26 JohnsonControls JCI 36.11 0.63 OmegaHealthcare OHI 29.66 0.75 SoCopper SCCO 25.49 -0.91 WLK
VeriskAnalytics VRSK 68.39 0.17
2.39 ChinaLifeInsADR LFC 11.30 0.14 EssexProp ESS 201.57 2.94 JonesLangLaSalle JLL 103.26 0.09 OmnicomGroup OMC 75.46 -0.29 SowestAir LUV 38.51 1.43 WestpacBankingADR WBK 21.23 0.63 Hasbro HAS 72.05 1.01
VertxPharm VRTX 88.25 2.88
0.66 ChinaMobileADR CHL 54.24 0.67 EsteeLaudr A EL 90.07 1.45 JoyGlobal JOY 12.65 0.54 OpkoHealth OPK 8.78 0.79 SpectraEnergy SE 29.31 0.91 WestRock WRK 32.71 1.20 s HenrySchein HSIC 164.01 2.15
ORCL 36.63 0.93 SpectraEnergyPtrs SEP 47.17 1.49 Weyerhaeuser WY 24.18 0.41 Hologic Viacom A VIA 39.84 1.59
-0.63 ChinaPetroleumADR SNP 57.31 1.66 EvrstReGrp RE 185.32 0.63 JuniperNetworks JNPR 23.57 0.36 Oracle HOLX 34.47 0.64
Viacom B VIAB 35.85 1.56
0.45 ChinaSoAirlinesADR ZNH 29.96 0.50 EversourceEnergy ES 53.54 -0.32 KARAuctionServices KAR 33.99 0.95 OrangeADR ORAN 17.41 0.26 SpectrumBrndsHldgs SPB 93.38 1.29 Whirlpool WHR 138.85 3.40 JBHunt JBHT 77.09 1.54
VimpelComADR VIP 3.79 0.42
0.75 ChinaTelecomADR CHA 48.57 0.15 Exelon EXC 31.09 0.07 KBFinancialGrpADR KB 25.68 1.21 OrbitalATK OA 84.17 1.30 SpiritAeroSystemsA SPR 45.42 0.13 WhiteWaveFoods WWAV 38.27 0.97 HuntingtonBcshs HBAN 8.77 0.03
0.48 ChinaUnicomADR CHU 11.05 0.20 ExtraSpaceStorage EXR 84.93 1.95 KKR KKR 12.60 0.12 OrixADR IX 62.40 1.26 SpiritRealtyCap SRC 10.77 0.09 Williams WMB 15.69 0.68 IdexxLab IDXX 71.52 2.11 VodafoneGroupADR VOD 31.09 0.83
0.47 ChipotleMex CMG 514.01 21.07 ExxonMobil XOM 82.00 0.78 KTADR KT 12.02 -0.02 OwensCorning OC 41.19 0.41 Sprint S 2.99 0.20 WilliamsPartners WPZ 17.33 1.98 IcahnEnterprises IEP 54.25 3.24 WPPADR WPPGY 105.67 2.23
PCG 55.81 0.06 StJudeMedical STJ 53.15 1.21 WilliamsSonoma WSM 57.66 3.49 Illumina WalgreensBootsAll WBA 78.16 1.61
0.34 Chubb CB 116.91 1.24 FMC FMC 37.86 1.07 KSCitySo KSU 82.67 2.04 PG&E ILMN 155.63 6.52
WesternDigital WDC 43.29 0.51
0.48 ChunghwaTelecomADR CHT 31.90 0.27 FMCTechnologies FTI 25.14 1.66 s Kellogg K 75.75 0.56 PNC FnlSvcs PNC 84.06 0.79 StanCorpFinancial SFG 114.80 -0.11 WiproADR WIT 11.37 0.18 Incyte INCY 74.45 2.78
WholeFoods WFM 31.76 0.86
0.96 Church&Dwight CHD 89.88 0.24 FactSetResearchSys FDS 147.84 3.23 KeyCp KEY 10.93 0.02 POSCOADR PKX 40.04 0.64 StanleyBlDck SWK 93.06 0.09 WooriBankADR WF 21.90 0.49 Intel INTC 29.47 0.69
1.03 Cigna CI 135.85 1.67 FedRlty FRT 148.19 -0.72 KilroyRealty KRC 50.51 0.70 PPG Ind PPG 95.00 1.74 StarwoodHotels HOT 66.95 1.91 Workday WDAY 54.78 4.25 InteractiveBrokers IBKR 33.02 1.19 WillisTowersWatson WLTW 111.24 0.47
PPL 35.99 -0.04 StateSt STT 56.58 -0.06 WyndhamWorldwide WYN 68.94 1.86 Intuit WynnResorts WYNN 76.21 1.56
0.89 CimarexEngy XEC 84.69 0.41 FedEx FDX 133.09 0.98 KimberlyClark KMB 130.50 1.79 PPL INTU 98.36 3.00
Xilinx XLNX 48.82 0.74
0.36 Citigroup C 39.78 0.89 Ferrari RACE 39.10 3.45 KimcoRealty KIM 26.77 0.25 PVH Corp. PVH 75.92 2.00 StatoilADR STO 14.14 0.77 XL Group XL 34.22 -0.43 IntuitiveSurgical ISRG 541.86 6.70
0.32 CitizensFinancial CFG 19.65 0.29 FiatChryslerAutos FCAU 6.55 0.25 KinderMorgan KMI 17.18 1.56 PackCpAm PKG 47.96 0.57 Steris STE 64.67 0.65 XcelEnergy XEL 38.94 0.11 IonisPharma IONS 38.74 2.70 Yahoo YHOO 29.37 0.09
1.29 Clorox CLX 129.42 1.30 FibriaCelulose ADR FBR 10.08 0.12 KingDigitalEnt KING 17.98 0.01 PaloAltoNetworks PANW 132.67 4.93 STMicroelectronics STM 5.60 0.21 Xerox XRX 9.19 0.17 JD.comADR JD 25.72 0.74 Yandex YNDX 13.64 0.07
0.86 Coach COH 35.97 0.39 FidNtlFnl FNF 32.47 -0.03 KinrossGold KGC 2.81 0.09 ParkerHannifin PH 101.03 1.38 Stryker SYK 96.29 -1.11 Xylem Inc. XYL 37.66 0.66 JackHenry JKHY 80.02 -0.95 ZionsBancorp ZION 21.59 -0.09
Zynga ZNGA 1.87 0.04
Kohl's KSS 43.90 1.28 PartnerRe PRE 140.10 0.30 SumitomoMitsADR SMFG 5.48 0.01 YPFADR YPF 17.38 0.83 JazzPharma JAZZ 122.79 3.79
KoninklijkePhilADR PHG 24.70 0.49 PearsonADR PSO 11.54 0.36 SunLifeFinancial SLF 29.93 1.42 YanzhouCoalADR YZC 4.24 0.13 JetBlue JBLU 21.48 0.04
NYSE MKT
KoreaElcPwrADR KEP 22.22 0.54 PembinaPipeline PBA 23.92 1.42 SuncorEnergy SU 23.98 1.65 YoukuTudouADR YOKU 27.36 -0.02 KLA Tencor KLAC 65.57 0.83
Kroger KR 39.42
KyoceraADR KYO 43.64
0.93 Pentair PNR 47.49 1.75 SunocoLogistics SXL 20.91 0.96 YumBrands YUM 71.20 1.68 KeurigGreenMtn GMCR 90.40 -0.06 BritishAmTobADR BTI 111.51 1.07
0.61 PepcoHoldings POM 26.39 -0.25 SunTrustBanks STI 34.43 0.14 ZayoGroupHoldings ZAYO 23.63 0.41 KraftHeinz KHC 74.24 1.93 CheniereEnergy LNG 28.37 1.79
LBrands LB 81.85 1.14 PepsiCo PEP 99.55 0.95 SynchronyFinancial SYF 26.27 0.13 ZimmerBiomet ZBH 95.37 1.75 LKQ LKQ 26.02 0.35 CheniereEngyPtnr CQP 23.09 1.09
LGDisplayADR LPL 9.09 0.16 PerkinElmer PKI 45.70 0.03 SyngentaADR SYT 81.45 0.59 Zoetis ZTS 41.80 1.37 LamResearch LRCX 69.25 1.67 ImpOil IMO 30.93 1.33
Wednesday Wednesday
Mutual Funds | WSJ.com/fundresearch Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret

Energy
Cotton,1 1/16 std lw-mdMphs-u 0.5955 Explanatory Notes Data provided by Fund
Net YTD JPMorgan Select Cls
NAV Chg % Ret CoreBond
HiYield
11.71 -0.02 1.7 InstlCapG
5.95
25.53
+0.04 -2.9
+0.69-11.6
WellsIAdml
WelltnAdml
59.35 +0.22 -0.1
61.73 +0.58 -2.8
Cotlook 'A' Index-t *65.80
Propane,tet,Mont Belvieu-g 0.3722 Hides,hvy native steers piece fob-u Top 250 mutual-funds listings for Nasdaq-published share classes with USLgCpCorPls 24.40 +0.51 -9.0 Intl G&I 12.18 +0.18 -6.8 WndsrAdml 58.29 +1.18 -9.7
70.000 net assets of at least $500 million each. NAV is net asset value. GrowCoK 119.75 +2.86-12.2
Butane,normal,Mont Belvieu-g 0.5349 Wool,64s,staple,Terr del-u,w n.a. InvGrBd 11.05 ... 0.5 IntlStk 14.21 +0.28 -7.0 VANGUARD FDS
NaturalGas,HenryHub-i 1.910
Percentage performance figures are total returns, assuming reinvestment
of all distributions and after subtracting annual expenses. Figures don’t LowP r 44.99 +0.80 -5.8 L MCapGro 67.10 +1.29 -8.5 DivdGro 21.86 +0.30 -2.5
NaturalGas,TranscoZone3-i 1.880 Grains and Feeds reflect sales charges (“loads”) or redemption fees. NET CHG is change in LowPriStkK r 44.95 +0.79 -5.8 Lazard Instl MCapVal 23.91 +0.37 -4.1 GNMA 10.77 ... 1.3
NaturalGas,TranscoZone6NY-i 2.120 Barley,top-quality Mnpls-u n.a. NAV from previous trading day. YTD%RET is year-to-date return. 3-YR
%RET is trailing three-year return annualized.
MagIn 82.03 +1.51 -8.3 EmgMktEq 13.09 +0.26 -2.6 N Horiz 37.22 +0.84-12.3 HlthCare r 197.76 +3.19-10.3
NaturalGas,PanhandleEast-i 1.650 Bran,wheat middlings, KC-u 95 OTC 69.70 +1.79-16.5 Loomis Sayles Fds N Inc 9.41 ... 0.9 IntlVal 28.88 +0.60 -7.1
NaturalGas,Opal-i 1.630 Corn,No. 2 yellow,Cent IL-bp,u 3.6000 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. Puritn 19.21 +0.23 -5.5 LSBondI 12.45 +0.11 -3.2 OverS SF r 8.35 +0.14 -7.1 INSTTRF2020 18.57 +0.18 -3.2
NaturalGas,MarcellusNE PA-i 1.340 Corn gluten feed,Midwest-u,w 101.8
j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. SrsInvGrdF 11.06 ... 0.6 Lord Abbett A R2015 13.23 +0.13 -3.3 INSTTRF2025 18.34 +0.21 -3.8
p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock
NaturalGas,HaynesvilleN.LA-i 1.800 Corn gluten meal,Midwest-u,w 460.7 split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply.
StratInc 9.98 +0.05 -1.2 ShtDurIncmA p 4.27 ... -0.4 R2020 18.87 +0.22 -4.2 INSTTRF2030 18.09 +0.23 -4.5
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.050 TotalBond 10.23 +0.01 0.1 Lord Abbett F R2025 14.22 +0.18 -4.9 LifeCon 17.55 +0.12 -1.6
Cottonseed meal-u,w 240 x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 9.550 Hominy feed,Cent IL-u,w 95 incomplete price, performance or cost data. NE-Not released by Lipper; data Fidelity Selects ShtDurIncm 4.27 ... -0.4 R2030 20.61 +0.30 -5.5 LifeGro 25.89 +0.36 -5.0
under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Biotech r 169.32 +6.12-28.2 R2035 14.83 +0.23 -6.1 LifeMod 22.28 +0.23 -3.4
Meat-bonemeal,50% pro Mnpls-u,w 193
Metals Oats,No.2 milling,Mnpls-u 2.5550 Wednesday, February 17, 2016 Health r 183.13 +4.23-12.0 M R2040
SmCapStk
21.09
35.09
+0.34 -6.6
+0.63 -9.1
Primcp r 91.78 +1.85 -7.9
Fidelity Spartan PrmcpCor 19.40 +0.36 -6.8
Gold, per troy oz Rice, 5% Broken White, Thailand-l,w 366.00 Net YTD Net YTD Metropolitan West Value 29.29 +0.47 -6.3 SelValu r 23.64 +0.42 -8.5
Engelhard industrial Fund NAV Chg % Ret Fund NAV Chg % Ret 500IdxInv 67.89 +1.10 -5.4
1210.70 Rice, Long Grain Milled, No. 2 AR-u,w 23.00 TotRetBd NA ... NA STAR 22.18 +0.27 -4.8
500IndInst 67.91 +1.11 -5.4
Engelhard fabricated 1301.50 Sorghum,(Milo) No.2 Gulf-u 7.5850
A EmgMktVa 19.34 +0.34 -5.2 Fidelity Spartan Adv
TotRetBdI NA ... NA S STIGrade 10.58 ... 0.4
Handy & Harman base 1210.00 SoybeanMeal,Cent IL,rail,ton48%-u 272.60 EmMktCorEq 14.96 +0.21 -5.1 TRBdPlan NA ... NA TgtRe2015 13.88 +0.12 -2.5
500IdxAd 67.90 +1.11 -5.4 Schwab Funds
Handy & Harman fabricated 1343.10 Soybeans,No.1 yllw IL-bp,u 8.7500 American Century Inv Fixd 10.31 ... 0.3 MFS Funds Class A TgtRe2020 26.27 +0.26 -3.2
ExtMktAd r 44.92 +0.86-10.5 S&P Sel 29.84 +0.49 -5.4
LBMA Gold Price AM *1212.00 Wheat,Spring14%-pro Mnpls-u 5.8625 Ultra 32.11 +0.61 -8.3 IntlCoreEq 10.48 +0.23 -8.0 ValueA p 31.50 +0.39 -3.9 TgtRe2025 15.01 +0.17 -3.9
IntAd r 33.05 +0.60 -8.0
LBMA Gold Price PM
Krugerrand,wholesale-e
*1209.50
1259.54
Wheat,No.2 soft red,St.Louis-bp,u 4.7900 American Funds Cl A IntSmCo 15.81 +0.34 -8.1 TotMktAd r 54.93 +0.93 -6.4
MFS Funds Class I
ValueI 31.68 +0.40 -3.9
T TgtRe2030 26.46 +0.33 -4.5
Wheat - Hard - KC (USDA) $ per bu-u 4.3600 AmcpA p 24.41 +0.52 -5.9 IntSmVa 17.02 +0.38 -8.9 First Eagle Funds TgtRe2035 15.97 +0.23 -5.2
Maple Leaf-e 1271.66 AMutlA p 32.99 +0.47 -2.5 MFS Funds Instl TIAA/CREF Funds
Wheat,No.1soft white,Portld,OR-u 5.2175 Dimensional Fds GlbA 50.04 +0.57 -2.6 TgtRe2040 26.80 +0.41 -5.8
American Eagle-e 1271.66 BalA p 23.15 +0.23 -2.9 US CoreEq1 16.09 +0.26 -6.3 IntlEq 19.06 +0.31 -7.3 EqIdxInst 14.12 +0.24 -6.3
TgtRe2045 16.73 +0.26 -5.9
FMI Funds Tweedy Browne Fds
Mexican peso-e 1468.22 Food BondA p 12.69 ... 1.1 US CoreEq2 15.28 +0.25 -6.5 Mutual Series TgtRe2050 26.81 +0.42 -5.9
LgCap 17.98 +0.22 -3.4
Austria crown-e 1190.12 Beef,carcass equiv. index CapIBA p 54.88 +0.62 -1.7 US Small 26.15 +0.33 -7.8 GlbDiscA 26.80 +0.50 -7.1 GblValue 23.05 +0.33 -5.8
TgtRetInc 12.32 +0.06 -1.0
FPA Funds
Austria phil-e 1271.66 choice 1-3,600-900 lbs.-u 199.43 CapWGrA
EupacA p
40.71
41.40
+0.72 -6.1
+0.71 -8.8
US SmCpVal
USLgVa
27.82
28.63
+0.40
+0.46
-8.8
-7.1
FPACres 29.28 +0.40 -5.7
GlbDiscz 27.27 +0.51 -7.1
V TotIntBdIxInv 10.72 ... 1.7
Silver, troy oz.
Engelhard industrial 15.3000
select 1-3,600-900 lbs.-u
Broilers,dressed 'A'-u
193.86
1.1200 FdInvA p 47.73 +0.89 -5.9 Dodge & Cox
FrankTemp/Franklin A
CA TF A p 7.57 -0.01 1.3
O VANGUARD ADMIRAL
WellsI
Welltn
24.50 +0.09 -0.1
35.74 +0.33 -2.9
GwthA p 37.69 +0.85 -8.7 Balanced 89.13 +1.23 -5.6 500Adml 178.24 +2.91 -5.4
Engelhard fabricated 18.3600 correcting previous 1.1159 Fed TF A p 12.46 -0.01 1.3 Oakmark Funds Cl I BalAdml 28.30 +0.27 -3.1
WndsrII 31.36 +0.51 -6.4
Handy & Harman base 15.4250 Broilers, National comp wghtd-u,w 0.8195 HI TrA p 8.97 +0.08 -3.2 Income 13.20 +0.01 -0.7 IncomeA p 1.99 +0.03 -4.3 EqtyInc 27.37 +0.31 -4.2 VANGUARD INDEX FDS
ICAA p 32.23 +0.62 -3.4 Intl Stk 32.01 +0.83-12.3 CAITAdml 11.99 -0.03 1.5
Handy & Harman fabricated 19.2810 Butter,AA Chicago 2.0425 RisDv A p 46.60 +0.58 -2.4 Oakmark 57.74 +1.01 -8.1
CapOpAdml r 106.91 +2.42 -9.9
500 178.22 +2.91 -5.4
LBMA spot price £10.6546 IncoA p 19.71 +0.22 -2.6 Stock 149.51 +2.89 -8.1 FrankTemp/Franklin C OakmrkInt 19.08 +0.46-10.7 ExtndIstPl 140.33 +2.67-10.6
Cheddar cheese,bbl,Chicago 147.00 EMAdmr 25.61 +0.40 -6.3
(U.S.$ equivalent) N PerA p 32.88 +0.65 -8.7 DoubleLine Funds Income C t 2.02 +0.03 -3.9 Old Westbury Fds TotBd2 10.74 -0.01 1.6
15.2500 Cheddar cheese,blk,Chicago 149.00 EqIncAdml 60.22 +0.76 -2.8
NEcoA p 32.59 +0.69 -9.4 TotRetBdI NA ... NA FrankTemp/Temp A LrgCpStr 11.72 +0.18 -6.0 TotIntl 13.43 +0.25 -7.3
Coins,wholesale $1,000 face-a 13566 Milk,Nonfat dry,Chicago lb. 75 ExtndAdml 56.86 +1.08-10.6
NwWrldA 46.11 +0.74 -7.8 TotRetBdN NA ... NA GlBond A p 10.98 +0.07 -4.7 Oppenheimer Y TotSt 47.54 +0.79 -6.4
Other metals Cocoa,Ivory Coast-w 3174 SmCpA p 38.76 +0.79-11.2 DevMktY 27.72 +0.51 -7.6 GNMAAdml 10.77 ... 1.3
Growth A p 19.97 +0.47 -8.9 VANGUARD INSTL FDS
LBMA Platinum Price PM
Platinum,Engelhard industrial
*933.0
942.0
Coffee,Brazilian,Comp
Coffee,Colombian, NY
1.2129
1.3643
TxExA p 13.19 -0.02 1.2 F FrankTemp/Temp Adv IntGrowY 33.82 +0.72 -5.8 GrwthAdml 50.94
HlthCareAdml r 83.42
+0.97 -7.0
+1.35-10.2
BalInst 28.31 +0.28 -3.1
WshA p 36.82 +0.59 -4.2 Fidelity Advisor A GlBondAdv p 10.94 +0.07 -4.6 DevMktsIndInst 10.90 +0.20 -7.9
Platinum,Engelhard fabricated 1042.0 Eggs,large white,Chicago-u 1.1850 AMG Managers Funds NwInsghtA p 23.90 +0.53 -7.7 P HYCorAdml r 5.37 +0.04 -2.4
ExtndInst 56.86 +1.08-10.6
Palladium,Engelhard industrial
Palladium,Engelhard fabricated
518.0
618.0
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
13.10
0.64
YacktmanFd
AQR Funds
20.58 +0.29 -1.4 Fidelity Advisor I G Parnassus Fds
InfProAd
IntlGrAdml
25.50
60.73
-0.02 1.2
+1.44 -9.4
GrwthInst 50.95 +0.97 -7.0
NwInsghtI 24.35 +0.53 -7.7 GMO Trust Class IV ParnEqFd 35.54 +0.53 -3.9 InPrSeIn 10.39 -0.01 1.2
Aluminum, LME, $ per metric ton *1528.5 Hogs,Iowa-So. Minnesota-u 64.29 MgdFutStrI 10.58 -0.11 3.9 Fidelity Freedom ITBondAdml 11.47 -0.02 2.2
IntlEq 18.59 +0.37 -7.4 PIMCO Fds Instl ITIGradeAdml 9.70 -0.01 1.0 InstIdx 176.48 +2.88 -5.4
Antimony-d 2.6000 Pork bellies,12-14 lb MidUS-u n.a. Artisan Funds InstPlus 176.50 +2.88 -5.4
FF2020 13.83 +0.17 -4.8 AllAsset NA ... NA LTGradeAdml 9.94 -0.03 0.9
Copper,Comex spot
Lead,NA solder-d
2.0740
108.255
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
0.9519
n.a.
Intl Inv 26.44 +0.43 -7.8 FF2025 11.77 +0.16 -5.4 H ShortT NA ... NA MidCpAdml 137.09 +2.46 -7.8 InstTStPlus
MidCpInst
43.04 +0.72 -6.3
30.28 +0.54 -7.8
Iron Ore, 62% Fe CFR China-s 45.8 Steers,feeder,Okla. City-u,w 177.00 B FF2030 14.21
FreedomK2020 12.87
+0.23
+0.15
-6.6
-4.8
Harbor Funds
TotRt
PIMCO Funds A
10.03 +0.01 ... MuHYAdml
MuIntAdml
11.41
14.43
-0.02 1.2
-0.03 1.5 MidCpIstPl 149.36 +2.69 -7.8
Shredded Scrap, US Midwest-s,w 182 Baird Funds CapApInst 53.59 +1.33-11.9 SmCapInst 48.22 +0.84 -9.1
FreedomK2025 13.34 +0.18 -5.4 TotRetA 10.03 +0.01 -0.1 MuLTAdml 11.86 -0.03 1.4
Stainless steel scrap,US-d 1560 Fats and Oils CorBdInst 10.92 -0.01 0.8 FreedomK2030 13.40 +0.22 -6.5
IntlInst r 56.09 +1.20 -5.6
PIMCO Funds D MuLtdAdml 11.11 -0.01 1.0 STIGradeInst 10.58 ... 0.4
Steel, HRC USA, FOB Midwest Mill-s 399 Corn oil,crude wet/dry mill-u 40.2500
Tin,NA solder-d 976.305 Grease,choice white,Chicago-u 0.2550
BlackRock Funds A
GlblAlloc p 16.99
FreedomK2035 13.69
+0.18 -4.8 FreedomK2040 13.72
+0.24
+0.24
-7.2
-7.2
I IncomeFd
PIMCO Funds Instl
NA ... NA MuShtAdml 15.85
PrmcpAdml r 95.07
... 0.4
+1.91 -7.9
TotBdInst
TotBdInst2
10.78 -0.01 1.6
10.74 -0.01 1.6
Zinc,NA-d 83.478 Lard,Chicago-u n.a. BlackRock Funds C Fidelity Invest Invesco Funds A IncomeFd NA ... NA REITAdml r 105.31 +0.93 -6.8 TotBdInstPl 10.78 -0.01 1.6
Soybean oil,crude;Centl IL-u 0.3043 GlblAlloc t 15.47 +0.16 -4.9 AMgr50% 15.42 +0.15 -3.9 EqIncA 9.03 +0.10 -6.1 PIMCO Funds P SmCapAdml 48.23 +0.84 -9.1 TotIntBdIdxInst 32.16 ... 1.7
Fibers and Textiles Tallow,bleach;Chicago-u 0.2650 BlackRock Funds Inst Balanc 20.11 +0.24 -5.2 IncomeP NA ... NA TotIntlInstIdx r 89.85 +1.67 -7.3
Burlap,10-oz,40-inch NY yd-n,w 0.5250 Tallow,edible,Chicago-u n.a. EqtyDivd 19.92 +0.30 -5.1 BalancedK 20.11 +0.24 -5.2 J Price Funds
STBondAdml 10.52
STIGradeAdml 10.58
... 1.0
... 0.4 TotItlInstPlId r 89.87 +1.68 -7.3
GlblAlloc 17.09 +0.18 -4.7 BluCh 61.47 +1.40-10.9 John Hancock Class 1 BlChip 64.61 +1.48-10.7 TotBdAdml 10.78 -0.01 1.6 TotStInst 47.57 +0.80 -6.4
HiYldBd 6.87 +0.04 -2.9 Contra 90.85 +1.75 -7.5 LSBalncd 13.49 +0.16 -5.2 CapApp 24.23 +0.25 -3.3 TotIntBdIdxAdm 21.43 ... 1.7 VirtusFunds Cl I
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; D=Ryan's Notes; StratIncOpptyIns 9.62 +0.01 -1.2 ContraK EmMktI 8.49 +0.07 -5.2
E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; 90.80 +1.76 -7.5 LSGwth 13.81 +0.21 -6.9 EmMktS 26.28 +0.39 -7.8 TotIntlAdmIdx r 22.47 +0.42 -7.3
CpInc r 8.66 +0.09 -4.8 JPMorgan Inst Class EqInc 27.11 +0.47 -4.7
n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly,
Z=not quoted. D DivIntl 32.06 +0.67 -8.6 MdCpVal 32.06 +0.48 -5.6 EqIndex 51.95 +0.85 -5.5
TotStAdml
TxMIn r
47.56
10.89
+0.79 -6.4
+0.20 -7.9 W
*Data as of 2/16 Dimensional Fds DivIntlK r 32.00 +0.66 -8.5 JPMorgan R Class Growth 47.78 +1.11-11.0 ValAdml 30.27 +0.43 -4.9 Western Asset
Source: WSJ Market Data Group 5GlbFxdInc 11.03 -0.01 1.2 GroCo 119.87 +2.86-12.2 CoreBond 11.73 -0.02 1.7 HelSci 59.63 +1.31-13.4 WdsrllAdml 55.65 +0.90 -6.4 CorePlusBdI 11.35 +0.01 -0.3
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
C8 | Thursday, February 18, 2016 THE WALL STREET JOURNAL.

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

T-Mobile’s
Proof Is in
Its Earnings
T-Mobile US is checking
all the boxes. The wireless
carrier reported better-than-
expected fourth-quarter
earnings and revenue on
Wednesday. Service revenue
climbed 11.7% and earnings
before interest, taxes, depre-
ciation and amortization, ex-
cluding one-time items, rose
by 31%. The result: margins
of 35%, up five percentage
points from a year ago.
In further defiance of
skeptics who thought its
strategy unsustainable, T-
Mobile generated free cash
flow of $897 million, exclud-
ing integration costs. Indeed,
the bull case for T-Mobile
hasn’t waned. For 2016, it
said it expected postpaid net
subscriber additions of 2.4
million to 3.4 million and
cash Ebitda of $8.4 billion to
$8.7 billion, up from previ-
ous guidance. T-Mobile fore-
casts cash capital expendi-
tures of $4.5 billion to $4.8
billion, boding well for free-
cash flow.
Yet the stock still trades
at only 5.2 times estimated
2016 Ebitda versus 6.4 times
for AT&T and 6.8 times for
Verizon Communications.
This may reflect continued
concerns over stepped up
competition. Investors also
may be worried about the
price it might end up paying
for wireless spectrum in the
government’s coming auc-
tion. But the results show T-
Mobile hasn’t slowed down.
And at least some auction
forecasts suggest prices will
be lower than the last.
In the meantime, T-Mo-
bile’s cheapness and status
as a strategic asset continue
to mean it could be an acqui-
sition target for the likes of
Comcast or Dish Network.
For investors, T-Mobile
keeps answering the call.
—Miriam Gottfried
Crisis Isn’t in Banks, but Bonds
The fall from grace has
been swift and hard. Buying
high-yielding subordinated
bank bonds that count to-
ward Tier 1 capital was a hot
trade in a world where inves-
tors were scrambling for
yield. This is a case where
markets have been their own
worst enemy.
European banks have been
at the center of the recent
market storm, with
Deutsche Bank’s bonds in
particular in focus. The move
in prices has been big, even
with a bounce in the past
couple of days. Bank of
America Merrill Lynch’s in-
dex of contingent capital
bonds—popularly known as
CoCos—has dropped 7.6%
this year.
Europe clearly has unre-
solved issues to address in
its fragmented banking sys-
tem. But this is hardly news.
The issue lies more with the
securities and the investors
that hold them than the bal-
ance sheets of the banks that
issued them.
The big risk that investors
have woken up to isn’t that
these bonds can be bailed in
if a bank hits trouble—it is
that interest payments on
The Fed’s Stock-Market Dependency Problem
Stocks have been re-
bounding, but forgive Fed-
eral Reserve policy makers if
they don’t entirely share in-
vestors’ sense of relief.
The past few trading days
have been good for the U.S.
stock market, with the S&P
500 logging its biggest
three-day gain since August.
And it is easy to come up
with reasons why. Saudi Ara-
bia’s and Russia’s plan to cap
crude production eased con-
cerns over oil producers’
debt strains. The Chinese
stock market didn’t fall apart
after its weeklong Lunar
New Year break, like many
Rude Awakening
Bank of America Merrill Lynch
Contingent Capital index
105
100
95
90
85
2015 ’16
Sources: FactSet; Bloomberg News (photo)
THE WALL STREET JOURNAL.
them can be skipped under
certain circumstances. In
turn, falling prices have
raised concerns that banks
won’t exercise their option
to redeem them at the first
opportunity, requiring a fur-
ther repricing downward.
That has upset the apple
cart of what had become a
so-called crowded trade—one
that caught many investors’
imagination as central banks
poured liquidity into mar-
kets. During the good times,
these instruments looked like
more lucrative versions of
investors worried. Recent
economic data, including
Wednesday’s report on in-
dustrial production, came in
stronger than forecast, indi-
cating the U.S. has so far rid-
den out the global storm.
Underpinning the recent
rally: a sense the Fed, which
had projected it would raise
rates by a full percentage
point in 2016, may not
tighten this year. The reason
for that? Turmoil in markets
since the Fed raised rates in
December, which tightened
U.S. financial conditions,
pushed commodities lower
and the dollar higher, and in-
Deutsche Bank branch in
Hamburg, Germany
safer, lower-yielding senior
debt. But now their equity-
like features have come to
the fore. That is a big shift
for holders to take on board
and one that is unlikely to be
reversed quickly.
In the meantime, it isn’t
clear that there is a natural
buyer for these securities.
For those holders who wish
to sell, that poses an imme-
diate problem: There is no
way out, and the turmoil
may not be over yet. In the
longer term, the economics
of these hybrid structures
troduced new emerging-mar-
ket strains.
Those things all matter to
the U.S. economy—growth
will likely be less robust
than it would have been if
markets had been quiet, and
inflation will take longer to
reach the Fed’s 2% target.
Minutes of the Fed’s January
meeting, out Wednesday,
show policy makers worry-
ing over the size of the hit
from market turmoil—which
had yet to run its course.
Still, it is hard to shake
the sense the Fed and mar-
kets have fallen into a recur-
sive loop: The Fed plans to
may depend on buyers see-
ing them as safe debt while
issuers consider them as
quasi-equity. If they are
priced more like equity, they
may not be so attractive to
issuers. Regulators may have
helped create an instrument
that is only truly viable in
fair-weather conditions.
Meanwhile, the fall in
prices looks to other market
participants like a big, red
flashing light that something
is going badly wrong. One
worry was always that these
securities, far from reassur-
ing investors by serving as a
prepackaged recapitalization,
would act as an alarm that
would pile more pressure on.
Markets can reprice a bank’s
liabilities faster than it can
rejigger or reprice its assets.
The natural response to a
move in price is to look for
some sign of fundamental
change.
But the woes of subordi-
nated bank bonds are a re-
minder that big shifts in
markets can be caused as
much by the behavior and
assumptions of investors as
by the problems faced by the
companies they have funded.
—Richard Barley
tighten policy to bring rates
back to “normal” levels;
markets freak out; the Fed
backs off; markets rally; the
Fed sets a new plan; markets
freak out again, and so on.
The latest market drop
doesn’t feel that different
from the one that led the
Fed to forgo raising rates
last September, or the 2013
“taper tantrum” that delayed
the winding down of the
Fed’s bond-buying program.
It has the makings of an
environment where the Fed
doesn’t get much of any-
where—but neither do mar-
kets. —Justin Lahart
OVERHEARD
Amid the spa discounts,
restaurant deals and cut-price
tickets on Groupon, Alibaba
should be looking for one
thing: lessons learned.
The Chinese e-commerce
giant last week disclosed a
5.6% stake in the once-popu-
lar, but lately shunned, group-
buying company. Groupon’s
shares rose 41% Tuesday,
atop a nearly 30% rise last
week, after a positive earn-
ings surprise. Groupon has be-
come the poster child for
fallen-from-favor tech compa-
nies. It had expanded too
quickly on a business model
that proved harder to execute
in reality than in concept.
Coupons, it turns out, don’t
breed loyal customers. They
attract cheapskates. That
may be what drew in Alibaba.
Last week, Groupon’s mar-
ket value was just $1.3 billion
down from $16 billion after its
2012 initial public offering. Ali-
baba says it wants to “ex-
change experiences” with
Groupon. It has its own ven-
ture in the so-called online-to-
offline space, Koubei, which
Alibaba and affiliate Ant Fi-
nancial last year committed
to pour $1 billion into.
To make its Groupon in-
vestment worthwhile, Alibaba
should study Groupon’s stum-
bles. The company has re-
trenched, laying off 10% of
staff and pulling back globally.
It is now in 28 countries,
down from 47 at the start of
last year. Groupon has had its
successes. Its stake in Korean
firm Ticket Monster could
help Alibaba refine strategy
from a successful player in
Asia. Alibaba founder Jack
Ma’s investments have a way
of generating value because
his name is attached. Since it
disclosed the stake, Alibaba
has netted a quick $33 million
paper profit.
That is the easy part.
Learning how to successfully
run a business in Groupon’s
space is a bigger lift.

CONGRATULATIONS,
WARREN STEPHENS,
ON 30 YEARS AS CEO.

— Your friends and colleagues at Stephens

In three decades as CEO, Warren Stephens steered our firm through bull and bear Watch “30 Years of Growth:
markets, a technology revolution and unprecedented industry changes. Warren Stephens” at
www.stephens.com/30years
By remaining true to the values on which the firm was founded, he built Stephens
from a single office in Little Rock into a global firm with 24 offices in the United States
and affiliate offices in London and Frankfurt, 890 employees, and leading businesses
in investment banking, private equity, research, insurance and wealth management.

After 30 remarkable years, Warren Stephens’ independent spirit and wisdom

continue to inspire all of us.

STEPHENS INC.• MEMBER NYSE, SIPC • 800-643-9691 @Stephens_Inc STEPHENS.COM

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STYLE & TRAVEL

Ninja Turtle Ransom Jason Gay on

Jesse Owens
Two brothers do chores HOW I SPENT MY ALLOWANCE | D3 SPORTS | D6

© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Thursday, February 18, 2016 | D1

Smartphones Go to School Look Up, It’s

Time to Stop
Many teachers now want
students to use phones for Our Walking
homework and in class;
from research to quizzes
While Texting
BY GEOFFREY A. FOWLER
BY CHARLIE WELLS
Manny Fiori’s job is to make
When it comes time to get seri- sure your phone doesn’t kill you.
ous about doing his schoolwork, He guards the entrance to a garage
16-year-old Daniel Self doesn’t near my San Francisco office and
need a desktop, laptop or tablet. stops cars from hitting pedestrians
He picks up his smartphone. so engrossed in screens they don’t
A junior at North Carolina’s notice they’re stepping into traffic.
Southeast Raleigh Magnet High “People are so oblivious nowa-
School and a self-described pro- days,” says Mr. Fiori, a building
crastinator, Daniel says his phone employee who
is his saving grace, academically barks orders and
speaking. He has used his phone to even holds out his
research and compose a slideshow arms to stop both
about Donald Trump, a presenta- cars and people.
tion on the architecture of sheds Watching the
and a creative writing assignment PERSONAL morning rush
tied to “Fahrenheit 451.” And be- TECHNOLOGY from his driveway
cause it is with him wherever he is a scary mea-
goes, he can do work on the bus, sure of our smart-
in the car, at lunch or at home. Daniel Self, a high-school N A screenshot from Daniel N Another screenshot shows phone addiction. In one hour last
Using a smartphone, he says he junior, used his smartphone to Self’s smartphone shows how some of his work using video, week, we tallied 70 pedestrians
completes assignments more easily research and create presentations he organizes his school and text and graphics on Google who never looked up—some
than on what he calls his “bulky” on Donald Trump and the personal content. Drive. watching TV shows, many grimac-
laptop. “I’m a faster texter than architecture of backyard sheds. ing while pounding out emails.
typer,” he wrote in an email sent Five of them can thank Mr. Fiori
from his LG smartphone. for preventing them from colliding
So much of the discussion into cars.
around teens and cellphones is I’m hardly innocent. My phone
about limiting screentime. But bears scars that look like I got in a
Daniel and other high schoolers fight with a bobcat—actually, I
show that phones have become es- walked into a wall while texting.
sential, to many, for daily home- It was sort of a joke when the
work. Even when they have a com- distracted pedestrian phenomenon
puter or tablet at their fingertips, first arrived. YouTube is filled
students prefer to use a mobile with highlight reels of texters fall-
phone for projects most adults ing into fountains. Germans have a
wouldn’t undertake without a key- word for such people: smombie—
board and mouse. smartphone plus zombie.
“The teaching profession has But as we reach a point where
yet to catch up with how students garages have to hire guards to
are using the devices,” says John save us from ourselves, texting
Kim, a senior lecturer who teaches while walking is no longer a joke.
a course on technology innova- It’s a public safety conundrum,
tions in education at Harvard Busi- and a symptom of an addiction. At
ness School. the very least, it’s a design failure
Mr. Kim is currently working on in smartphones that have mas-
a business-school case about tered how—but not when—to get
“blended learning” schools in our attention. It’s time to ask what
Chester County, Pa., that mix tra- responsibility the tech industry
ditional classroom instruction with has to address the problem.
online learning. Students in the I crunched data from the Con-
program are allowed to use their sumer Product Safety Commission
own devices at school, and Mr. and discovered that emergency
Kim found a third of them use mo- room visits involving distracted
FROM TOP: DANIEL SELF (3); DANI KENNIS

bile phones as opposed to tablets pedestrians using cellphones were

or computers. up 124% in 2014 from 2010—and
In a marine-biology class at up 10-fold from 2006. The increase
Clarkstown High School North in Students use smartphones in Danielle Kennis’s was consistent with an analysis by
New City, N.Y., 17-year-old Ashley high-school history class to view virtual-reality Jack Nasar, a professor at Ohio
Garcia used her phone’s built-in video and take quizzes on their phones using State University, who found a big
video camera and an app, Micro- Google Forms. In a nod to social media, the students uptick in cases between 2005 and
soft’s Hyperlapse Mobile, to create call their class in room 309 #kenfam. 2010.
an instructional video on making a Some researchers now blame
papier-mâché fish. She used an- portable electronic gadgets for 10%
Please see HOMEWORK page D3 of pedestrian injuries, and a half-
dozen deaths a year. “We aren’t
Please see TEXTING page D3

At Fashion Week, the Talk Wasn’t About the Clothes

When Social-Media Buzz Is the Objective, Which Labels Went Digital Most Skillfully
Designers Put Spectacle Before Style And Which Fell Short in Their Screen Test
BY ELIZABETH HOLMES half-dozen famous faces of the moment, in- BY CHRISTINA BINKLEY
cluding Gigi Hadid and Kendall Jenner.
This season, New York fashion week took Guests at the Polo Ralph Lauren presenta- Los Angeles
the emphasis off the fashion and put it on tion sipped Ralph’s Coffee and Moscow Shimmery fabrics and midi skirts have
the show. mules while an assembly of male models been crowd-pleasers on the runways. But
As the industry grapples with how to re- posed alongside a photogenic Irish Setter. how has New York fashion week played in
engage shoppers, some of the most recog- “We call it ‘merchan-tainment,’ which the digital world?
nizable American designers went in search has to be a very balanced blend of merchan- Tory Burch live-streamed her show
of brand-building buzz with over-the-top dising and entertaining,” says David Lauren, Tuesday morning, salting her spicy high-
events tailored especially for camera- and son of Ralph Lauren and executive vice pres- end collection with normcore track pants
BENNETT RAGLIN/GETTY IMAGES

smartphone-wielding crowds. ident of global advertising, marketing and that she immediately put up for sale on-
Tommy Hilfiger paraded models around corporate communications at the designer’s line. Tommy Hilfiger created an Instagram
an elaborate set constructed like the deck of company. photo pit at his show, with prime seats for
a vintage cruise ship invoking the Titanic Showmanship and selling fantasy have social-media stars, based on their follow-
but dubbed the “T.H. Atlantic.” Diane Von always been integral to the fashion business. ings.
Furstenberg threw a dance party with a Please see SPECTACLE page D2 At the presentation of LaQuan Smith,
who has dressed Rihanna and Beyoncé,
sales associates armed with iPads mingled
FROM LEFT: TOMMY HILFIGER; CHRISTOPHER SMITH/INVISION/AP

with guests to take orders online for shoes
and dresses. Deliveries were promised
within two weeks. “I knew I have a lot of
Instagram and social presence, and I
wanted to bring that same energy to e-
commerce,” he said.
Not everyone embraced the new direc-
tion, which some fear just makes it easier
to copy their designs. Rising star Simon
Porte Jacquemus made an unusual request
on his eponymous label’s Instagram ac-
count: He banned social-media postings of
images at his March 1 show in Paris. Mas-
simo Giorgetti, designer of Milan-based
MSGM, said he would also ban them.
Tommy Hilfiger showed his collection on a set built like a vintage cruise ship, including puffing Far from the front rows, I watched New
smoke stack; model Taylor Hill invokes an iconic film moment. York fashion week, which ends Thursday,
At the presentation of LaQuan Smith, right,
sales associates with iPads took orders.
play out on several screens at my desk in
Los Angeles. I was among the roughly
300,000 people who watched Opening Cer-
emony’s live stream, which was glitchy due
to a power outage and an hour late. With
20 million others, I sat through Kanye
West’s cringeworthy (but characteristically
unfiltered) two-hour-long Yeezy 3 fashion
show and “The Life of Pablo” record debut
at Madison Square Garden.
I glimpsed Jason Wu’s wearable-chic
collection through the latest in social-me-
dia live-stream apps: Neiman Marcus’s
Please see DIGITAL page D2
D2 | Thursday, February 18, 2016
DIGITAL
Continued from the prior page
wobbly Periscope camera. I saw
vignettes from Diane von Fursten-
berg’s pared-down presentation
on Instagram.
There were glitches at every
turn, many on my end. My old
iPhone became so
ON STYLE bogged down by
apps and images that
I caved and up-
graded. I tried to do too much:
My laptop crashed as it tried to
stream Carolina Herrera while
also live-streaming a 7 a.m. yoga
class.
None of these inconveniences
have slowed down the most fash-
ion-obsessed generation ever. “It’s
how most of us millennial plebes
consume the runway now,” says
Sian-Pierre Regis, the 31-year-old
founder of Swagger magazine,
who says his fashion-week regi-
men is to search for relevant live
streams, view Instagram, and
search Vogue Runway for collec-
tions he can’t find elsewhere.
For anyone with a Netflix sub-
scription, fashion’s digital prow-
Five Runway Style Trends
Plunging
Necklines
The red carpets are
now influencing the
runways. Necklines
that may require
double-sided fashion
tape to stay in place
appeared at Altuzarra,
Narciso Rodriguez,
Carolina Herrera,
Prabal Gurung,
Michael Kors and a
host of labels. Take
care.
How Did the Brands Do in the Digital Week?
Sewn Up
Carolina Herrera and Tory Burch: These excellent live
streams offered compelling, entertaining views of the
runway and audience.
Adam Lippes: He transformed the look book of his
designs into a moving image, and a bold new future.
Tommy Hilfiger: His ‘InstaPit” gave prime seats to
leading social media types while walling them off from
the rest. Everyone was happy.
Alexander Wang: The website asked visitors to sign
up for reminders to watch his live stream, simultaneously
gathering emails and making people punctual.
Kanye West: Never turned off the camera, no matter
how awkward things got.
ADVERTISEMENT
Leisure Travel
To advertise: 800-366-3975 or WSJ.com/classifieds
 
STYLE & TRAVEL
over.
Small brands are enlisting
savvy if unconventional bedfel-
lows. The hookup app Grindr live
streamed J.W.Anderson’s ex-
tremely niche menswear show
from London last month. It was
viewed live 40,000 times, and was
seen about 150,000 times globally
within a week, a spokesman for
the label says.
Martin Lindstrom, a branding
HOUSEOFHERRERA/INSTAGRAM
consultant and author of “Small
Data,” says fashion should look at
Hollywood’s formula, which fo-
cuses on building anticipation for
the final product. “I see it the
same as ‘Star Wars,’ ” he says.
“They came up with a trailer, and
they sold some items, but you
This Instagram photo from Carolina Herrera received many hits and comments. still have to have a big bang.”
The best digital views in New
ess feels leagues away from cut- it move, not only flat images,” Mr. York weren’t from the hottest
ting-edge. Designer Adam Lippes Lippes said. shows, but they did often come
issued a moving-image lookbook What is emerging is a digital from well-run businesses. Tory
with video clips in place of still divide between fashion labels. Burch produced a live stream
photos. By showing the backs of Rather than being a separation with such high resolution that it
runway looks, it could revolution- between big-budget labels and lit- was possible to watch Vogue edi-
ize Vogue Runway, which mainly tle guys, it has to do with the ef- tor Anna Wintour scan models
shows frontal views. fort a brand puts into the digital walking by. Carolina Herrera’s
“People are looking at the col- realm. Clearly the days when an three-view stream, with two 360-
lection on phones and websites all assistant with an iPhone could degree cameras that viewers
over the world. They want to see handle a brand’s social media are could operate with a mouse, was
A photogenic Irish setter was the center of attention at Polo Ralph Lauren’s
fashion week presentation.
SPECTACLE
Continued from the prior page
But the sense of urgency in the at-
tention-grabbing spectacle is new,
and largely of the industry’s own
making. Designers’ embrace of so-
cial media pried open their once-
exclusive world and gave shoppers
a seat in the digital front row.
Now, the beast has to be fed.
People attend shows, phones in
hand, to shoot video for Snapchat,
GETTY IMAGES (5)
take pictures for Insta-
#THIS gram and live-stream on
Periscope. The more de-
signers turn the runway
show into an experience, the
The Midi Skirt The Bomber Shimmery Murky Colors greater the opportunity to create
Searches for “midi” Jacket Metallics Whether the tribute is and share content.
skirts on Pinterest Along with its close The look of the intentional or not, The flip side of this tactic—and
nearly quintupled in cousin, the school evening involves there is a growing Mr. Lauren says he thinks about it
the past year, letter jacket, this look clothes that shimmer, obsession with the often—is that it might actually de-
according to the social made its way through especially with silver murky colors seen in tract from the fashion. “Some-
network. Little wonder, collections from sleek or gold metallic fabrics. Gucci’s recent times things are just so cool, and
given their across-the- Dion Lee to ultra- Pants or dresses—c’est collections—mustardy then you go, ‘But wait, does that
board appearance on femme Sophie egal. See Sophie golds, grimy greens make you want to buy it?’ ” Mr.
runways from Jason Theallet, artsy Zero + Theallet, Tommy and weird pinks. 3.1 Lauren said. “It’s like any good
Wu to Suno and Maria Cornejo, and Hilfiger, Opening Phillip Lim, Zac Posen, movie. The special effects can
Public School. rugged Coach. Take Ceremony. Even the Creatures of the Wind cloud the story.”
your pick. This trend queen of black, Vera and even Lacoste, so He added, “I want to make sure
isn’t new, so if you Wang, did it. typically primary- the story is clear and they are pay-
want to be cutting- colored, did it. ing attention to the clothing.”
edge, wait to see if it Some designers are doubling
continues on runways down on the fashion element, pro-
in Paris and Milan. ducing shows that are more inti-
mate. But for brands with mass
appeal and an attainable price
point, generating attention on so-
cial media is the new normal.
“It’s very different than 15
Loose Threads years ago when we were just into
Jason Wu: Neiman Marcus’s Periscope feed from a the clothes,” said Felipe Oliveira
back row revealed little more than the backs of heads. Baptista, creative director of La-
Opening Ceremony: Over-ambitious and under- coste.
prepared, the production ran late. Electric glitches left The rapper-designer Kanye
some viewers with no live stream. West staged an elaborate event in
Oscar de la Renta and Hood by Air: The classicist the hollows of Madison Square
and the street-style ingenue had dark live streams. Garden. The clothing, far from
Everyone who sat out the digital revolution: A little most attendees’ view, took a back
video won’t hurt. There’s no penalty for trying. seat to the debut of his new album
Council of Fashion Designers of America: Media and his famous extended family in
giant IMG cornered “NYFW.com” to the exclusion of the audience.
labels that don’t pay IMG. It’s misleading. But the format Mr. West chose
—Christina Binkley in lieu of a moving runway—a pre-
sentation of clothing with models
who stand still—could be found at
other labels too. “With a runway,
it’s there and gone. Let people step
up to see the clothes,” said the de-
signer Tracy Reese, of her decision
to adopt the format. She showed
her fall collection with a screening
of a film about her hometown, De-
FRANCE troit, and her fashions. Afterward,
models wearing the clothes stood
in a lounge outside the screening
room, while a pianist provided a
soundtrack.
Diane Von Furstenberg staged a
presentation on two floors of her
New York headquarters. Models
wearing the new collection gath-
ered in vignettes on the first floor.
ROBERT LIBETTI AND JARRARD COLE/THE WALL STREET JOURNAL
“Downstairs was about the
FASHION IN VIRTUAL REALITY clothes,” the designer said. Up-
THE WALL STREET JOURNAL.
textbook how-to-do-it.
CEO François Kress noted the
label learned from a less-than-ex-
ceptional Periscope experiment
last season. “We learned that you
need great Wi-Fi connectivity,” he
said, laughing.
By comparison, most live
streams in New York have been
dark, ill-lit or grainy. Hood by
Air’s dark edgy fabrics were little
more than silhouettes on the run-
way. Oscar de la Renta’s rich col-
ors were muted in shadows.
This is a matter of newness,
says Andrea Lim, digital director
in charge of fashion partnerships
for Lexus, who oversaw the live
streaming of Opening Ceremony.
Fashion brands accustomed to
setting up a photo pit at the end
of the runway must now plan to
capture video mid-runway, as well
as showing influencers in the au-
dience, for viewers accustomed to
being entertained by movies and
television.
“With fashion video content,
for the longest time, quality
didn’t matter so much,” Ms. Lim
says. “But now it needs to be the
same resolution as a commercial.
It’s a learning curve.”
JOE SCHILDHORN/BFA.
danced, flashed peace signs and
blew kisses at the crowd. Ms. Von
Furstenberg joined them as they
were surrounded by a sea of out-
stretched arms, all wielding cam-
era phones. “It felt right,” the de-
signer said afterward.
Was it branding, or was it sell-
ing? Both, the designer said. “If
you build the image of the brand,
you will end up selling clothes.”
Elaborate sets are the calling
card of Tommy Hilfiger—and a
surefire way to get people to snap
a picture. After last season’s island
getaway theme, complete with an
oversize pool of water, the brand
built a runway like the deck of a
vintage cruise ship, complete with
smoke-emitting stack.
“The old way of watching mod-
els walk down the runway on a
platform in a white box—it’s a bit
boring, isn’t it?” Mr. Hilfiger said.
“In this day and age, the entertain-
ment value is incredibly impor-
tant.”
He pointed to the need for cre-
ating immersive, shareable experi-
ences. “Image-building is incredi-
bly important to headline the
brand,” he said. And the need for
entertainment will extend to e-
commerce, he predicts. “The public
will want to be entertained while
seeing the clothes, even on the
website.”
Yet Mr. Hilfiger emphasized
that clothing remains paramount.
“We learned very early on that the
product has to come first,” he
said. Image-building is all well and
good, but “if you don’t have the
product to back it up, the con-
sumer is so smart today, they will
discover it right away and spread
the word.”
The brand has forged relation-
ships with social influencers,
whose big online followings help
spread the word. Tommy Hilfiger’s
spring show received 845 million
impressions on social media, the
brand said.
This season some of Tommy
Hilfiger’s top influencers, including
stylist Rachel Zoe and blogger
Bryanboy, were seated on benches
on the set itself, giving them unen-
cumbered views of the models and
making them a part of the show.
The brand also constructed an “In-
staPit,” a prime spot where 15
handpicked Instagrammers photo-
graphed the show. The most popu-
lar by far was Nash Grier, an 18-
year-old Internet celebrity with 8.8
million Instagram followers who
also is known for his videos on
Vine.
“It’s fresh. I like the view,” he
said from the front row of the In-
staPit, which was set slightly back
from the runway with tiered seats
like a stadium.
Afterward, the photo Mr. Grier
chose to post on Instagram wasn’t



 

 
stairs “was a little bit more of a of the show, but of himself. Clad in

 
 

     

 

From sewing clothes to casting social media moment.” Tommy Hilfiger clothing, he posed
    

 


  
  


   
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models to building the set, a lot goes
into New York fashion week. In
virtual reality follow Jason Wu as he
There, a few of the biggest
names in modeling, some with mil-
lions of Instagram followers, posed
in the InstaPit with the oversize
ship dimly visible in the back-
ground. The picture received






  
prepares his show at wsj.com/VR on and around a lip-shaped couch, 230,000 “likes.”
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. Thursday, February 18, 2016 | D3

STYLE & TRAVEL

Doing Chores for Ninja Turtles

BY ANNE MARIE CHAKER

When the incentive to help with

housework hit a lull at the home of
brothers Mika and Henry Nowott-
nick, their mother reported getting
an extraordinary email.
Using a parenting trick she
learned on Facebook, Eugenia Hall
said that
HOW I SPENT Shredder, the
MY ALLOWANCE armor-clad
Teenage Mu-
tant Ninja Tur-
tles antagonist, had alerted her of
kidnapping four of the boys’ turtle
figurines. “To earn them back,”
says Ms. Hall, a 35-year old office
manager in Anderson, S.C., “we
had to get some points.”
Retrieving the mail and unload-
ing the dishwasher were worth
two points each, and a squabble-
free day—“No fighting or hurting
your brother”—earned each of the Mika, left, and Henry Nowottnick in
boys five points. Working as a the kitchen. The boys unload the
team to earn 60 points got them dishwasher; their mom pays their
one turtle back. After four weeks, earnings in their jars from a pickle jar.
all four turtles reappeared—either
in a bedroom, the kitchen or on lar (a well-swept kitchen floor).
the coffee table. “That was how I The money is transferred to their
introduced all these chores that individual jars from a pickle jar
they are perfectly capable of do- filled with spare change.
ing,” Ms. Hall says. Each boy approaches earnings
Ms. Hall then came up with a differently. Ree “spends it as fast

EUGENIA HALL (3)

new system: She cleaned out two
pasta-sauce jars and labeled them
with each of the boys’ names. The
jars sit on the kitchen counter.
Mika (pronounced “MEE-kah”), 6,
and Henry, 5, who goes by Ree, can
volunteer anytime to sweep the
kitchen floor, set the table, unload
the dishwasher or fold laundry.
Depending on the task’s diffi-
culty and how well it was done,
they can earn anywhere from 25
cents (grabbing the mail) to a dol-
as he makes it,” Ms. Hall says. Get-
ting a $50 boost of birthday
money, he has bought about five
figurine sets—Star Wars and Super
Mario Brothers are among his fa-
vorites—from the toy store. Mika,
on the other hand, is “more con-
servative” and has about $150
saved up. He once purchased an $8
Super Mario Bros. plush cube from
Toys “R” Us. Mika says he is think-
ing about purchasing Minecraft-
themed figurines and a toy sword.
Given how close the two boys
are in age, their parents emphasize
sharing. The one exception: Toys
earned with their own money.
“Having something that is truly
theirs, bought with their own
money, means a lot to them,” Ms.
Hall says. “They can keep it in
their room and they don’t ever
have to share it.”
For everything else, Ms. Hall
has them follow a three-step rule.
“If you want a toy that your
brother is playing with, first ask
nicely. They can say ‘no.’ Then, of-
fer a trade,” which they can also
decline. After exhausting those two
steps, “The third step is ‘wait your
turn.’ ” She may set a timer for five
minutes to help move things along.
If all else fails, could Shredder
re-emerge? His comings and goings
remain a mystery to Mika and Ree.
“Never say never,” Ms. Hall says.

TEXTING
Continued from page D1
talking about bumps and bruises,
these are people who are straining
muscles, dislocating joints and
breaking bones,” says Deborah
Hersman, CEO of the nonprofit
National Safety Council.
Mobile phones make us think
we can multitask, but there’s now
proof that they impair us, even
walk—either by slowing us down,
or veering us way off course. I
asked a colleague to dress up like
Chewbacca from Star Wars and
hang out on a San Francisco street
during the morning commute this
week. Then I interrupted pedestri-
ans staring down at their phones,
and asked whether they’d noticed
a legendary Wookiee lurking
about. Many hadn’t.
Ira Hyman Jr., a psychology
professor at Western Washington
he conducted one of the first ver- locks the phone screen—and
sions of my cellphone-distraction flashes a warning to look up.
test, asking passersby if they’d no- I tried one version, which taps
ticed a clown on a unicycle. Half of the phone’s GPS to determine
the non-cellphone-using pedestri- what’s an intersection. Another
ans saw the clown, but only a version uses inexpensive sensors
quarter of people talking on a in shoes to determine, within two
phone did. steps, when the user has stepped
Even the strong-willed are sus- into the street.
ceptible to a buzzing gadget, per- “There is no cure for stupidity,”
fectly crafted to reward our brains’ says Ms. Jain. But the same tech-
desire to find new things and be nology that created the problem
social. Just see how long you can could also play a role in its solu-
JACOB SEMPLER

when we’re not behind the wheel. University, tells me this is called ignore an incoming text. “This is
Using a phone changes the way we “inattentional blindness.” In 2008, FOMO—the fear of missing out,”
says Paul Atchley, a psychology
professor at the University of Kan-
sas. Smartphones are “trying to hi-
Slow and Wonky jack your attention.”
Researchers at Australia's University of Though personal willpower
Queensland explored how texting can plays the biggest role, I’m not
change the way we walk. Texting can put us holding my breath that many peo-
off balance and makes us less likely to walk ple will keep their cellphones
in a straight line. stashed when they hit the side-
walk. However, we need to teach
children that putting down their
1 ft. 2 3 4 phones when crossing the street
belongs right up there with look-
ing both ways.
Walking speed (feet per second)
Better urban planning could
Normal walking 4.4 ft. help. Some towns and college cam-
Reading 3.8 puses have put “look up” signs in
dangerous stairwells and intersec-
Texting 3.3
tions. New York City cut speeds for
Average stride length (feet) cars, and San Francisco has been
making more busy corridors pe-
Normal walking 4.4
destrian-only, partly in response to
Reading 4.0 walkers looking at their phones.
Texting 3.8 Last fall, road signs appeared in
Stockholm, warning cars about
Note: In the small study, 26 adults were asked to walk normally under three conditions: with their phones texting pedestrians. It turns out
in their pockets; while reading from their mobile phones; and while typing ‘the quick brown fox jumps over
the lazy dog.’ The order of the conditions was randomized and in each condition participants were asked to
they were made by two artists, Ja-
walk in a straight line over a distance of 27.9 feet. cob Sempler and Emil Tiismann. It
Source: Schabrun et al, University of Queensland, PLOS ONE THE WALL STREET JOURNAL. was a social-media sensation.
“Which is pretty ironic,” says Mr.
Swedish designers erected signs in
Stockholm warning motorists about
pedestrians who may be texting.
Sempler. “Most people probably
just passed the actual signs, glued
to their phones.”
How much of an obligation do
the phone makers have to address
this growing danger? The auto in-
dustry is a useful comparison:
Many lives were saved when peo-
ple chose to wear seat belts; still
more were saved when air bags
became a regulatory requirement.
Smartwatches like the Apple
Watch and Samsung’s Galaxy Gear
keep data addicts from having to
look down at their phone all the
time—replacing it with a smaller
screen that’s faster to check.
The core problem is the phone
itself. Rutgers University engineer
Shubham Jain has been working
with colleagues on an app that de-
termines when someone using a
phone is walking into an intersec-
tion. When you do, it momentarily
tion, she says, by suppressing dis-
tractions and alerting us to dan-
gers. Nobody wants a digital nag,
but maybe if this were a slick Ap-
ple Watch feature, some of us
might turn it on.
A more fundamental step would
be helping us cut through the ca-
cophony of notifications from apps
that want—but don’t really need—
our attention.
“I think it is a problem of eth-
ics,” says Prof. Atchley. “If you’re
selling the ability to grab some-
body’s attention, you’re probably
going to do that despite what
might be best for that person.”
Back at the San Francisco ga-
rage, Mr. Fiori says these days he
knows many regular passersby not
by their name or occupation, but
by the flickering images on their
screens.
“Cellphones have made our
lives that much easier and that
much faster,” he says. “But they’ve
taken away something from us,
too.”
Write to Geoffrey A. Fowler at
geoffrey.fowler@wsj.com or on
Twitter @geoffreyfowler.

PHONES
Continued from page D1
other app, WeVideo, to edit
the two-minute video, which
includes voice-over and
background music.
Ashley’s science teacher,
Heidi Bernasconi, says she
actively encourages her stu-
dents to create projects on
their phones. “If you want to
become a disruptive teacher
in 2016, you have to figure
out how to log on with [stu-
dents] and explain to them
in their community,” she
says. “If you don’t embrace
the fact that they are always
logged on, you are not going
to reach them in the way
they’re comfortable.”
Another one of her stu-
dents, Ariel Ben-Zvy, 17, says
he made a presentation for a
public speaking class on his
phone using Google Slides,
similar to PowerPoint. He
did the work 20 minutes be-
fore it was due. The topic?
How to make last-minute
presentations.
At nearby Clarkstown
High School South, in West
Nyack, N.Y., educators are us-
dents use their phones to friendly quiz on the Neo-
take what she calls “#tbt lithic and Paleolithic ages
quizzes” using Google Forms asked students to explain
and the hashtag abbreviation how the introduction of agri-
for “Throwback Thursday” culture affected early peo-
popular on Instagram, the ples and when the domesti-
photo-sharing site. cation of animals occurred.
Ms. Kennis says because Many students say they
her students have to take the create and submit assign-
state Regents exam for ments on their phones using
global history at the end of cloud-based Google Docs for
the year, the #tbt quizzes word-processing and Slides
help them to keep reviewing. for presentations. Some
Students get immediate adopt the apps informally.
feedback on their perfor- Google offers them and oth-
mance via a Google Chrome ers as a formal suite for
extension called Flubaroo, teachers to use in lesson-
which can be programmed to planning and classroom
grade the quizzes students teaching. Thousands of
submit and notify them of teachers and administrators
results. A recent mobile- have attended training ses-
DANI KENNIS
sions in use of the apps, and perfecting the best way to devices must be on their
many, such as Ms. Kennis manage having students desks and visible when in
and Ms. Bernasconi, are cer- work on devices that also use. If they text, surf or send
tified (but not paid) by happen to be sources of dis- selfies, they temporarily lose
Google to give support to traction with the likes of In- their privileges.
other teachers. stagram, Snapchat, and Face- “When someone texts
Microsoft has Office 365 book. He talks to his you, tags you on Instagram,
Education, with Word, Pow- students about not abusing you see all that stuff and it’s
erPoint and other apps that phone privileges. They may really tempting,” Daniel Self,
can be used across devices, use phones at almost any the North Carolina student,
including mobile phones. time during class, except says. “It’s all about self-con-
Calvin Feehan, a Spanish during quizzes or tests. The trol.”
teacher at Redwood High
School in Visalia, Calif., says
his classroom operates on a
“bring your own device,”
policy: One of his students
recently submitted an as-
signment using images from
a Snapchat story and sprin-
kled with emoji, which fol-
lowed her for a day as she
took part in activities that
required her to use reflexive
verbs in Spanish.
There are challenges. Mr.
Feehan says if a student is
unable to afford a smart-
phone, he makes sure to find
a loaner laptop, or students
share devices. When he
started teaching in 2009,
most students had cell-
phones, but not everyone
had a smartphone. Now, he
estimates 90% of his stu-

ing social-media lingo and dents, including a fair num-

mobile formats, to engage
students in otherwise rou-
tine schoolwork. Every
Thursday in Danielle Ken-
nis’s social studies class, stu-
ber from lower-income
households, have a smart-
Danielle Kennis, who teaches history at Clarkstown High School phone. “Pretty much every-
South, in West Nyack, N.Y., gives #tbt, or Throwback Thursday, body has one,” he says.
quizzes to help students review. Mr. Feehan says he is still
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
D4 | Thursday, February 18, 2016 THE WALL STREET JOURNAL.

STYLE & TRAVEL

Private Jet Etiquette: Be the Best in Class Ask Teri Columnist

Teri Agins answers
BY CHERYL LU-LIEN TAN readers’ fashion
Getting an invite on a private
Five Tips questions
jet has its perks—as well as po-  Arrive 30 minutes before departure
tential pitfalls. In the world of up-
per-class flying, certain etiquette
rules certainly should be kept in
and make sure you have required ID.

 Pack as little as possible. Private

Q: When is the yoga-pants fash-
ion trend over? Young, slim
women look attractive in yoga pants,
mind. jets may have limited luggage space. but for the rest of us who aren’t
“You need to be considerate,” young and mostly not slim, that fash-
says Andrew Collins president and  Dress well as you’ll be representing ion is unattractive. And very few are
CEO of the Massa- your host. on their way to the yoga studio. What
TRICKS OF chusetts-based Sen- does your fashion crystal ball say?
THE TRADE tient Jet, a private  After boarding, let your host choose —KE, Saratoga, Calif.
aviation service. a seat first before sitting down.
“It’s like being a
guest in someone’s home.”  Tip $50 to $100 per crew member. A: Over the years, yoga has popu-
larized stretchy, skin-tight
BRIAN HARKIN FOR THE WALL STREET JOURNAL (2)

Mr. Collins, who flies on a pri- pants, tank tops and hoodies. They are
vate jet two to three times a necessary. “A lot of times, the favored by everybody, just the way leg-
month, says as a guest on some- host doesn’t need or want any- gings, leotards and ankle warmers
one’s private jet, the first thing thing in return,” he says. caught on in the 1980s aerobics craze.
you should do is get to the airport Food and drink are typically Some schools ban teens from
early. “Even though it’s private available so it’s best not to show wearing yoga pants as well as leggings
travel and you don’t have to deal up with your own in-flight meal, to class. Adult women of all sizes and
with security lines, you really Mr. Collins says. ages continue to wear yoga pants as
want to show up 30 minutes prior It’s best to take your cues from streetwear and casual office-wear, for
to departure,” he says. “You your host. “Just because you’re in better or for worse.
should not be the cause of any de- a private jet doesn’t mean it’s a As for when the trend is going
lay.” time to start drinking very heav- away, don’t hold your breath. There is
Having travel documents “in ily,” Mr. Collins says. little chance yoga pants will ever go
perfect order” is key, Mr. Collins While some planes have a completely out of style. They are sta-
says. “Always have your govern- Andrew Collins, the CEO of Sentient Jet, on a private jet at the Short Hills large-screen TV, it’s best to see if ples in the burgeoning multibillion-dol-
ment-issued ID ready. Just be- Aviation terminal at Morristown Airport in Morristown, N.J. the host suggests watching some- lar “athleisure” apparel business in to-
cause it’s private aviation, you thing before turning it on. “It’s day’s all-casual, all-the-time mode of
can’t go stealth,” he adds. not like a dinner party. It’s not dressing.
Also, make sure to pack as your host’s responsibility to enter- Designers such as Tory Burch and
lightly as possible, as many pri- tain you in-flight,” he says. entertainers such as Rihanna and Be-
vate jets have less cargo or bag- While being on a private jet— yoncé are all diving into the pool, mar-
gage space than commercial especially if it’s your first time— keting namesake athleisure collections,
planes. “Don’t overpack. This is may provide some excitement, it’s which practically guarantees variations
important as private jets can have best to check with your host be- on yoga pants will remain trendy and
luggage capacity challenges and fore posting anything about the workout wear will continue to be seen
you don’t know what your host is trip on social media. “Because of outside yoga class.
bringing,” he says. “Be respectful. the confidential nature of private For women who like to dress mod-
If you have questions on how flying, you have to be mindful,” estly, there are plenty of looks to pair
much you can bring, ask your says Mr. Collins, who notes that with yoga pants. Choose sharp-looking
host.” posting a photo showing the tail midthigh tops (no goofy sayings or lo-
Appropriate attire is essential, number of a plane, for example, is gos) layered with fingertip hoody jack-
as “you’re their guest and you’re a an especially big no-no. “Your ets, long vests or sporty capes.
part of representing them when host may not necessarily want the
you go on the plane,” says Mr. world to know they fly private.”
Collins, who often dresses in busi- Finally, when disembarking,
ness attire or something that’s Mr. Collins believes in tipping the
dressy casual for such flights. crew. “Typically, your host would
When boarding the plane, Mr. handle this but it’s also OK for
Collins likes being one of the last, you to tip a crew,” says Mr. Col-
as he believes it’s polite to let the In that vein, if you are the you don’t want to go past five lins, who notes that it’s often best
host choose a seat and let others host, Mr. Collins recommends fac- people. A midsize jet that can seat to give the tip for the entire crew
settle in first. Sometimes, he’ll ask toring in extra room and seats so nine or 10 people, you don’t want to the crew member helping you
the host “Hey, is it OK if I sit guests don’t feel as cramped as to go past eight,” he says. disembark. “That crew member

AMY DEVOOGD
here?” before sitting down, as the they might on a typical commer- While Mr. Collins likens getting should share that with the crew.”
host may not necessarily want to cial plane. “I would say you want invited on a private jet to receiv- For the tip, Mr. Collins recom-
be in such close quarters with his to fill 80% of the cabin. So on a ing a dinner-party invitation, he mends $50 to $100 per crew
or her guests. light jet that seats up to seven, doesn’t believe a gift is always member.

Photo Credit: Alexia Fodere for The Wall Street Journal

Home schools are getting a luxury makeover. Find out how some families
HOMEROOM are transforming their spare rooms into lavishly equipped learning spaces.

MANSION
© 2016 Dow Jones & Co. Inc. All rights reserved. 6DJ3276
Read more in the
Mansion section every
Friday or online at
WSJ.com/mansion
 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. Thursday, February 18, 2016 | D5

ARTS IN REVIEW
ART

Van Gogh Paints a Room of His Own

THE ART INSTITUTE OF CHICAGO

VAN GOGH MUSEUM

Clockwise from top left: The

Van Gogh’s Bedrooms
Art Institute of Chicago
Through May 10
BY MARY TOMPKINS LEWIS
room encapsulates Van Gogh’s Van Gogh Museum’s 1888
Parisian stay, where he lived for original version of the artist’s
almost two years with his bedroom; the Art Institute’s
brother Theo, an art dealer. The 1889 version, which was the
stippled, sketch-like “View second Van Gogh painted; the
From Theo’s Apartment” (1887) third version, also from 1889
offers a wintry glimpse of the and now in the collection of

T
Chicago Parisian skyline from their win- the Musée d’Orsay.
hough he posed for a self- dow in Montmartre, and per-
portrait with palette and haps a sense of the refuge Van sive and interactive experi-
brushes, and painted still Gogh sought inside the rue ence—the original state and
lifes and figure compositions in Lepic residence. His large, lu- chronology of the three can-
corners of his ateliers, Vincent minous “Parisian Novels,” a vases are now definitive. The
van Gogh (1853-1890) never still life of contemporary second version, where flaking
painted his studio. He did, how- French books, conjures up, pigment and the exposed
ever, paint his bedroom. In the though more indirectly, a simi- weave of the canvas reveal that
small but compelling “Van lar sensibility. Van Gogh was a it was painted quickly as Van
Gogh’s Bedrooms,” an exhibi- voracious reader fluent in Gogh described, includes a
tion of about 35 of his paint- Dutch, French and English, and self-portrait of the artist, who
ings, drawings and illustrated a large vitrine filled with novels stares out from the recesses of
letters curated by Gloria Groom such as Edmond de Goncourt’s his shattered dream. The third
of the Art Institute of Chicago, “La maison d’un artiste,” realist version, identifiable by its
we discover that this intimate narratives by Emile Zola (one smaller size, is equally autobi-
space, which the artist depicted of Van Gogh’s favorites), and an ographical. Both exhibit a ner-
on three separate and long-sep- engraving the artist treasured vous energy and sense of in-
MUSÉE D’ORSAY

arated canvases, provided Van after Samuel Luke Fildes’s poi- completion so unlike the
Gogh with both a sanctuary and gnant “The Room in Which restful respite of the first.
a potent pictorial subject. Charles Dickens Wrote” (1870) In the final gallery, paint-
Organized chronologically, builds a convincing literary ings of the Saint-Rémy hospital
the show in- context for and of peasant cottages from
troduces Van Gogh’s (September 1888), captures in strokes and brilliant light on a the painter Eugène Boch, sil- Van Gogh’s last days in Auvers-
viewers at the Bringing together kindred picto- dense touches of lime green, receding, red-tiled floor, while houetted in gold against a sur-Oise are proposed as yet
outset to the three takes on a rial imagery. citron yellow and scattered Gauguin’s elaborately carved starry night sky, and of an ex- further tokens of his insatiable
short-lived The painter pinks the region’s sweet- chair seems to float against a otic Zouave soldier in red and quest for refuge. This may or
artist’s stun- personal space. left Paris for scented but poisonous olean- flat screen of color. green (the originals are here as may not be the case, but one
ningly peripa- the southern ders and also its weeping wil- Van Gogh’s spare Arles bed- well), it was a work the painter need not follow every evoca-
tetic life and city of Arles in lows. Emblematic of love, death room is digitally re-created considered his best to date. tive path proposed in this little
the blistering pace and produc- February 1888, where he hoped and the Provence that was here, and sets the stage for the Van Gogh repeated the com- gem of a show to grasp how
tivity he somehow sustained. to establish in the so-called Yel- home to the Renaissance poet monumental galleries that position twice more while con- beautifully it underscores the
Van Gogh’s early years in the low House a utopian commu- Petrarch, Van Gogh felt it showcase the three seminal fined to an asylum at Saint- profoundly moving sensibilities
Dutch village of Nuenen, where nity of like-minded artists. The suited Gauguin’s increasingly canvases that represent it. The Rémy-de-Provence—once to and significance of Van Gogh’s
his father was a minister, are bedchamber intended for Paul Symbolist orientation. Hanging first version of the theme, preserve the original image, three paintings of his bedroom,
represented by somber paint- Gauguin (whose stay would end nearby in the exhibition as pen- painted in October 1888 with which he feared had suffered examined and explicated from
ings of rural outbuildings, when Van Gogh suffered a men- dants, Van Gogh’s celebrated relatively restrained brush- water damage, and again on a virtually every conceivable an-
thatch-roofed cottages, even tal breakdown), for example, paintings of the two painters’ work and a soothing, stylized reduced scale for his family. gle in this historic exhibition.
abandoned birds’ nests—evo- would be decorated with reso- empty chairs in Arles describe palette of blues and yellows, Building on recent research
cations for the painter of the nant views of the public garden their divergent approaches: His was intended, he told Theo, as and riveting, high-resolution Ms. Lewis teaches art his-
comforting embrace of home. visible from his room. One of own rustic, rush-bottomed an image of “utter repose.” imagery—which here offers the tory at Trinity College, Hart-
A long, crimson-colored these, “The Poet’s Garden” chair is captured in tangible Embellished with a portrait of viewer an enthralling, immer- ford, Conn.

MUSIC

BY JIM FUSILLI
Setting Folk Aflame
yet to post reviews. Thus, for in-studio projects. Thus Ms. echoes with hand drums, bells,

‘F
eed the Fire,” the new
album by Promise &
the Monster, arrived
almost unnoticed in late Janu-
ary amid the weekly monsoon
of new rock-and-pop releases.
Though PIAS America, which is
promoting it in the U.S. for
Bella Union, the band’s U.K.-
based label, made the record
available to reviewers two
months earlier, and a teaser
trailer was posted on YouTube
in December, media here have
been slow to acknowledge the
album: Pitchfork and NPR Mu-
sic, the two most essential out-
lets for emerging artists, have
the most part, it has been up
to music fans to discover the
new Promise & the Monster re-
cording on their own.
Such is the plight of many
musicians today who are work-
ing well outside the mainstream
and for whom the excitement of
releasing new music can sur-
render to the realization that
the global rock-and-pop mar-
ketplace is overcrowded with
worthy albums by major tal-
ents. But listeners who have
stumbled upon “Feed the Fire”
have found an excellent, per-
haps extraordinary, album. It is
magnificently indefinable—
based in contemporary folk yet
tilting toward experimental and
Lindahl has been refining her chiming keyboards and an
craft for a long while. erhu, a two-stringed bowed in-
“Feed the Fire” is her third strument from China. The
ever-shifting instrumentation
enhances Ms. Lindahl’s meta-
phoric, often oblique tales
sung in English and delivered
in a high-pitched voice that is
redolent of mystery.
Ms. Lindahl said she would
love to secure an audience in
the U.S., but she knows it will
be a challenge. She doesn’t
have a booking agent to set up
a U.S. tour; thus, no appear-
ances are scheduled for next
month’s South by Southwest
festival, where, if her live show
were anything like what she
full-length solo album and a ti- achieves on the album, she
MALIN JOHANSSON/ KALLE MATTSSON

Pepper ...
And Salt
THE WALL STREET JOURNAL
“What a week! We’re going
out to roll in some stuff.
Want to join us?”
avant-garde rock—an other-
worldly, cinematic expression
that delights in its own daring
and offhand sophistication.
Promise & the Monster isn’t
a band populated by gifted mu-
sicians. It is Billie Lindahl, a
28-year-old based in Stock-
holm who, along with producer
Love Martinsen, made most of
the myriad sounds that shape
the world under her voice. Ms.
Lindahl works in a bookstore
and plays guitar and sings in
the Swedish alternative-rock
band Ştiu Nu Ştiu.
During a phone conversa-
tion from Stockholm, she said
she started writing songs at
age 10 and for her 18th birth-
day, her father gave her the
gift of a recording session.
Later, she assumed the name
Promise & the Monster for her
tanic leap forward from its would stand out, even in an
predecessors. “Transparent congested field. “Feed the Fire”
Knives” and “Red Tide,” issued should stir up a groundswell for
in 2007 and 2011, respectively, an American tour by Promise &
are introspective folk albums the Monster—and perhaps it
that point to the influence of will, eventually—but there is no
Nick Drake and the Swedish Billie Lindahl, who records as Promise “should” in today’s rock and
singer-songwriter Stina Nor- & the Monster, just released her third pop, where it seems there is
denstam. A few tunes on “Red album, ‘Feed the Fire.’ more good music coming into
Tide” go beyond the acoustic the U.S. market from across the
guitar-and-voice template, but planet than even the most dedi-
hardly suggest what would fol- the tinkle of harpsichord-like ’60s girl-group sound, Lee Ha- cated fans can appreciate. With
low on “Feed the Fire.” With keyboard enters, followed by zlewood’s twangy guitar pro- “Feed the Fire,” Ms. Lindahl has
the new disc, it’s as if Ms. Lin- brushes sweeping the drum ductions and ’80s gothic rock. created an album that rewards
dahl decided to dress up her kit, an echoing wood block, xy- Driving drums and blaring special attention. Which is
compositions in all the sounds lophone, cello, violins, a trace trumpets usher in “Time of the about all that can be asked of
they could bear; she said ideas of electric guitar—all of which Season” while “Apartments an artist, whether widely cele-
for complex arrangements come and go in a wash of syn- Song” springs from guitars and brated or little known.
came as soon as she had the thesized sound. Despite the icy strings
structures for the songs. The population, the track never “Machines” features an en- Mr. Fusilli is the Journal’s
title track, which opens the al- feels overcrowded. vironment guaranteed to draw rock and pop music critic.
bum, begins on familiar terrain Throughout the album, Ms. comparisons to Angelo Badala- Email him at jfusilli@wsj.com
with orchestral strings and Lindahl creates a cohesive menti’s score for David Lynch’s and follow him on Twitter
plucked folk guitar, but soon statement that modernizes the “Twin Peaks” while “Hunter” @wsjrock.
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 | Thursday, February 18, 2016
Heard On
The Field
Nike Drops Pacquiao
After Anti-Gay Slurs
Nike terminated an endorsement
agreement with Manny Pacquiao
after the Filipino boxer made derog-
atory comments against homosexu-
als. The sportswear maker said in a
statement that it found Pacquiao’s
comments “abhorrent” and that it
no longer has a relationship with
the fighter.
Pacquiao, 37, made an offensive
remark against the gay community
on a television station in his native
Philippines earlier this week, and
posted an apology on his Facebook
and Twitter profiles on Tuesday, say-
ing “I’m sorry for hurting people by
comparing homosexuals to animals.
Please forgive me for those I’ve hurt.”
Nike has previously taken steps
to discontinue endorsement rela-
tionships with other sports stars,
and has included clauses in its con-
tracts which allow the company to
end sponsorship if an athlete of-
fends the public.
Pacquiao (57-6-2, 38 knockouts)
is scheduled to face Timothy Brad-
ley on April 9, in what he called his
“last fight.” In January, Pacquiao said
he is ending his boxing career after
the Bradley bout to engage fully in
politics in the Philippines. He is run-
ning for a senate seat in the May 9
general election. —Sara Germano
Dibaba Breaks Record
In the Indoor Mile
Genzebe Dibaba of Ethiopia
broke a 26-year-old world record in
the women’s indoor mile on
Wednesday, running 4:13.31 in
Stockholm to smash the old mark
by nearly 4 seconds.
It is the fifth world record for
Dibaba, 25, who also owns the
marks in the indoor 1,500, 3,000
and 5,000 meters, and the outdoor
1,500 meters, all set within the
past two years.
She is the 2015 world 1,500
meter champion and the younger
sister of three-time Olympic cham-
pion and outdoor 5,000m world re-
cord holder Tirunesh Dibaba, and is
considered a heavy favorite to
medal at the Rio Olympics this
summer. —S.G.
Cubs Are Buying Something That’s Not for Sale: a World Series
Pitchers and catchers started re-
porting to spring training Wednesday,
which means it’s time for the annual
tradition of declaring which team
“won the off-season.” Currently, the
trendy pick for this distinction—and
the ridiculous amount of hype that in-
evitably comes with it—is the Chicago
CUBS | 2016
Spent: $276.3 million
Key acquisition: Jason Heyward
Result: ?
Jesse Owens won four gold medals
at the 1936 Berlin Olympics.
Jesse Owens: On Screen, On Time
“It’s an important story,” Gloria
Owens Hemphill said. “And it’s
time for this.”
It’s been nearly 80 years since
Hemphill’s father, the track-and-
field superstar Jesse Owens, made
history at the 1936 Berlin Olympics,
winning four gold med-
als in a performance
viewed as a rebuke to
Hitler’s Nazi regime.
Owens is unequivocally
regarded as one of the
JASON most significant ath-
GAY letes in U.S. history—
ESPN put him at No. 6
on its top 100 athletes
of the 20th century, ahead of Willie
Mays, Jack Nicklaus and Babe Did-
rikson Zaharias, among others—
and yet there has also been a feel-
ing of opportunity lost, a legend
denied his full recognition.
It was Wednesday morning in
New York, at a midtown hotel, and
Hemphill and her younger sister,
Marlene Owens Rankin, were in
town to promote a film based on
those indelible moments of their
father’s athletic career. “Race”
opens Friday, starring Stephan
James as Owens, and Jason Sudei-
kis as his coach, Larry Snyder.
For Hemphill and Rankin, who
served as advisers to the project
along with the middle Owens sis-
ter, Beverly Owens Prather, it is a
celebratory week. The first time
they saw the movie, they cried,
Cubs, their 107-year championship
drought be damned.
The Cubs followed up last year’s
National League Championship Series
appearance by committing more than
$276 million in free agency this win-
ter, the most of any organization in
baseball. They added outfielder Jason
Heyward, infielder Ben Zobrist and
starting pitcher John Lackey to an al-
ready-loaded roster, emerging as
World Series favorites. (Apparently,
oddsmakers in Las Vegas don’t put
NATIONALS | 2015
Spent: $216 million Spent: $471 million
Max Scherzer
Missed playoffs (83-79) Missed playoffs (84-78)
SPORTS
Hemphill said.
“We still cry,” she said. “I can’t
help it.”
To the Owens daughters, of
course, the man up there on the
screen is not a character or histor-
ical figure, but a father they loved
and remained close with until his
death in 1980 at age 66. The Jesse
Owens they knew didn’t like to
dwell on his ground-breaking ath-
letic accomplishments—especially
in his own home.
“He was quiet about it,” said
Marlene Owens Rankin. “He would
answer questions, but it was just
not dinner conversation.”
At home, Jesse Owens was a
man who preferred order and neat-
ness (“Meticulously neat,” Rankin
said), and liked fine clothes, enter-
taining his friends and playing golf.
“He loved golf,” Hemphill said.
“He was avid.”
“And he loved beating Ralph
Metcalfe and all those guys,” said
Rankin, referring to Owens’s late
Olympic teammate, later elected to
the U.S. House of Representatives.
“They were competitive to the
end,” Hemphill said.
The Owens family had been ap-
proached several times about film
projects, and though there had
been “The Jesse Owens Story” in
1960, none of the more recent que-
ries had evolved into an actual
movie. When the makers of “Race”
called, “there was a little skepti-
much stock in the cosmic powers of
cursed billy goats.)
But before anybody starts plan-
ning the parade route through the
streets of the Windy City, keep this
in mind: Writing lavish checks in the
winter and commanding headlines in
the spring far from guarantees suc-
cess in the fall.
The team that spent the most
money in the off-season failed to
reach the playoffs in five of the past
six years. That group includes the
YANKEES | 2014 DODGERS | 2013
Spent: $185.9 million
Masahiro Tanaka Zack Greinke
Lost NLCS (92-70)
GAY: HULTON ARCHIVE/GETTY IMAGES; THE COUNT (L-R): ASSOCIATED PRESS (2); GETTY IMAGES (5); HOF (T-B): GETTY IMAGES; ZUMA PRESS
* ***
cism,” Rankin said. But Marlene
and her sisters were won over by
an early script, and the film-
maker’s pledge to listen to the
family’s input, a vow the children
said was honored.
Directed by Stephen Hopkins,
“Race” tells the story of the short
but brilliant stretch in Owens’s life
from his arrival at Ohio State Uni-
versity through Berlin ‘36. Owens
ran at Ohio State without a schol-
arship, taking a job to make ends
meet, but still managed to become
a track-and-field sensation. In one
astonishing meet in Ann Arbor,
Mich., Owens set three world re-
cords and tied for a fourth (the
film points out that Owens and
Coach Snyder thought he got that
fourth one, too.)
A year later, Owens was in Ber-
lin for an Olympics in which the U.
S.—and Owens’s own—participa-
tion was a matter of much internal
debate (Jeremy Irons plays Olym-
pic committee head Avery Brund-
age in “Race,” and a side drama in
the film involves the behind-the-
scenes machinations before and
during the games involving the
U.S. team and Hitler’s Germany, in-
cluding the decision to sit the Jew-
ish sprinters Marty Glickman and
Sam Stoller.) Despite Owens’s stag-
gering triumph at the Berlin
Games, he returns to a bittersweet
reaction: Asked to use the service
entrance at a hotel where he is be-
2015 Washington Nationals, who
signed ace Max Scherzer for $210
million and entered the season with
overwhelming expectations—before
finishing behind the New York Mets
in the NL East standings. It also in-
cludes the 2014 New York Yankees,
who won just 84 games despite
throwing a whopping $438 million at
Masahiro Tanaka, Jacoby Ellsbury,
Brian McCann and Carlos Beltran.
This isn’t to say that big spenders
aren’t competitive. The Yankees won
ANGELS | 2012
Spent: $330.5 million Spent: $162.3 million
Albert Pujols
Missed playoffs (89-73) Missed playoffs (90-72)
THE WALL STREET JOURNAL.
ing honored, uninvited to the
White House, later stripped of his
amateur status after taking com-
mercial opportunities.
For the Owens sisters, these are
not personal recollections—Gloria,
the oldest, was just a small child
when her father competed in Ber-
lin. It wasn’t until later, in school,
she realized her dad’s legacy, and
those early years after the Olym-
pics were challenging (Owens filed
for bankruptcy in 1939.) “I think
he did struggle with what he was
going to do after sports,” said
Rankin. “A lot of things were pro-
posed, and many things did not
pan out.” Later, she said, he would
find stable work in public speak-
ing.
“He had so much warmth in
him,” said Hemphill. “He could tell
a story that would make you feel
right there.”
Eight decades after a perfor-
mance that shook the planet, Ow-
ens is again right there, this time
on the screen, larger than life. To-
day’s modern sports world, while
vastly improved, is far from per-
fect; ugly prejudices still surface
and linger. Asked what they hoped
audiences, especially younger peo-
ple, might take away from the
film about their father, the eldest
daughter of Jesse Owens did not
hesitate:
“Don’t give up,” Hemphill said.
“Take pride in yourself. And do it.”
the World Series in 2009 after giving
$441 million to free agents that win-
ter. The last nine teams to lead free-
agent spending all finished with a
winning record.
But only two of those teams won
more than 90 games, which might
not be a good sign for the Cubs, but
could bode well for this year’s Yan-
kees: They are the only team in base-
ball who didn’t sign a single major-
league free agent this off-season.
—Jared Diamond
RED SOX | 2011 CARDINALS—2010
Spent: $129.5 million
Carl Crawford Matt Holliday
Missed playoffs (86-76)