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The Year’s Best 2015 Highlight
And Worst Ads Reel
BUSINESS & TECH. | B1 SPORTS | B8
* * * * MONDAY, DECEMBER 28, 2015 ~ VOL. CCLXVI NO. 151 WSJ.com HHHH $3.00
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What’s Islamic State Flees Key Iraqi City

News A victory in Ramadi
would be the third in
reach of their third major vic-
tory in as many months
against the extremist group.
passing soldiers, even though
the army hadn’t yet declared
Ramadi completely under its
cleared hundreds of land
mines and other explosives.
“Our forces reached the
the capital of Anbar province,
would be the third success for
Iraqi security forces and allied
as many months Though the Iraqi forces control. government compound and paramilitary groups in three
Business & Finance have built up momentum Security forces have encir- surrounded it,” said Capt. months. They retook the oil
against the extremists against the militants, Islamic cled a former government Rami Emad, a military spokes- refining town of Beiji in Octo-
State still controls major cities compound that was the last man. “We don’t think the ber and in November, Iraqi
he S&P 500 is on track BY MATT BRADLEY and vast territory in both Iraq area of the city held by Islamic forces will enter the com- Kurdish forces drove the Sunni
T for a late-year decline,
and market forces that
AND GHASSAN ADNAN and Syria and has carried out
or inspired recent terror at-
State and prepared a final
push to clear out any remain-
pound tonight since it has be-
come dark and they are clear-
Muslim extremist group out of
the strategic city of Sinjar.
weighed on stocks in 2015 BAGHDAD—Islamic State tacks from Paris to California. ing fighters and explosives, ing the surrounding roads and “These are big blows to
could persist into 2016. C1 fighters fled their last bastion State television beamed im- Iraqi officials said. A number buildings of improvised explo- Please see RAMADI page A8
Nasdaq is up 6.6% so far in the center of the city of Ra- ages of young men cheering, of Iraqi leaders said they were sive devices.”
this year on gains by some madi on Sunday, putting Iraqi dancing and singing in streets confident the city would fall The recapture of Ramadi, Kurds secure hold over dam
tech firms and less exposure forces and their allies within across Iraq while greeting imminently, once the army 60 miles west of Baghdad and in Syria.......................................... A8
to the energy sector. C2
Currency movements
are having a less-than-ex-
pected effect on global ex-
Tornadoes Ravage North Texas as Storm Tolls Rise Cruz a Hit
ports as the foreign content
of products increases. A1
Investors are uneasy
In Iowa,
about the fate of Puerto Ri-
can bonds deemed the saf-
est as the territory nears a
Slighted
debt-payment due date. C1
GM is facing calls to make
air bags standard equipment
In Senate
on its compact cars in Mex- BY JANET HOOK
ico, reflecting pressure for
global safety technology. B1
Sen. Ted Cruz is getting
Chipotle is waiting for rock-star treatment at his
the CDC to declare an end 2016 presidential-campaign
to an E. coli outbreak be- events. In Iowa, the state he
fore launching a campaign has visited more than any
to woo back customers. B1 other, a recent poll found
more Republicans viewed him
Disney’s “Star Wars”
favorably than any other GOP
led the weekend box office
candidate.
with $153.5 million as
Among his fellow senators,
movie theaters set a
by contrast, he is one of the
Christmas sales record. B4
most disliked men in Washing-
Nike is boosting its di- ton. He has been called “wacko
rect-to-consumer sales, ex- bird,” “jackass” and “false
panding that business but prophet.” And that came from
making smaller athletic re- Republicans.
tailers feel squeezed. B7 The gap between his repu-
ASSOCIATED PRESS
tation in Washington and his

U.S. venture-capital firms
reception among primary vot-
are increasingly investing
ers isn’t a paradox. It is cen-
in European biotech com-
tral to his campaign strategy.
panies, drawn in part by
With the GOP electorate
lower initial valuations. C3
WEATHER WATCH: Deadly tornadoes hit the Dallas area Saturday night, including Rowlett, Texas, shown above on Sunday. A riddled with disdain for the
succession of unusual winter-weather events over the Christmas holiday have led to at least 43 deaths in the U.S. A2 political establishment, Mr.
World-Wide Cruz relishes his reputation as
the bad boy of the Senate,
where he has dragged his
Islamic State fighters fled party into a government-shut-
their last bastion in Ramadi,
putting Iraqi forces in reach
of their third recent victory
THERANOS’S GROWING PAINS tering budget fight and defied
party leaders ever since arriv-
ing on Capitol Hill in 2013.
against the extremists. A1 “When we launched our
Kurdish militias and their
Elizabeth Holmes’s blood-testing ambition has collided with technological problems campaign, the New York Times
promptly opined, ‘Cruz cannot
allies battled to consolidate
win because the Washington
their hold over a strategic
BY JOHN CARREYROU an error message. drops of finger-pricked blood. elites despise him,’ ” he said in
dam seized from Islamic
After two hours, the colleague called Now 31, Ms. Holmes has emphasized a video ad created by a super
State in northern Syria. A8
The night before a big meeting with it quits, leaving Ms. Holmes still a variety of strategies—a hand-held de- PAC supporting him. “I kinda
Tornadoes killed 11 people a Swiss drug company in 2008, Thera- squeezing blood from her fingers to vice, tests for drugmakers, drugstore thought that was the whole
in north Texas, as freakish nos Inc. founder Elizabeth Holmes and test it again. clinics—while trying to turn her dream point of the campaign.”
weather events led to at least a colleague sat in a Zurich hotel, stick- Ever since she launched Theranos in into a business. She often has collided Now that he is rising in na-
43 deaths in the U.S. A2 ing their fingers with a lancet. 2003 when she was 19 years old and with technological problems, according tional and state polls—includ-
They drew drops of their own blood dropped out of Stanford University, Ms. to interviews with more than 20 former ing a first-place ranking in
Texas will allow licensed
to try the company’s testing machine, Holmes has been driven by ambition Theranos employees, company emails Iowa just five weeks ahead of
firearms owners to openly
but the devices wouldn’t work, says that is big even by Silicon Valley stan- and complaints filed with federal regu- that state’s caucuses—the
carry guns in most places
someone familiar with the incident. dards. Instead of a smartphone app to lators. Please see CRUZ page A4
starting at the new year. A3
Sometimes the results were obviously hail a car or order food, she wants to In Switzerland, she went ahead and
Chicago police faced too high. Sometimes they were too low. revolutionize health care with a vast pricked her finger in front of a group of Sanders sees Trump backers
more calls for change after Sometimes the machines spit out only range of diagnostic tests run with a few Please see HOLMES page A10 as his allies................................. A4
a black woman was mistak-
enly shot and killed. A3
The pope voiced concern Returns To Relax, Grown-Ups Try
for Cuban migrants stranded
in Central America in their Spur Own To Stay Inside the Lines
efforts to reach the U.S. A7
China passed a new an-
Boom i i i
titerror law, but dropped a E-commerce has Adults seeking stress-relief grab coloring
provision requiring tech- created a booming
nology firms to turn over business in returns books; pencil supply-and-demand
encryption codes. A7 for companies that
collect, process and
Beijing detained China
often resell piles of BY JAMES R. HAGERTY for a while, but they are part of
Telecom’s head in a probe of
unwanted gifts and AND JEFFREY A. TRACHTENBERG the electronic-device world,
state-owned firms as part of
other rejected with its upsetting emails and
a graft crackdown. A7
merchandise. This While returning a book to Facebook rants. So, seeking sol-
Poland is taking a more holiday season, the public library in Dormont, ace in a scary
GETTY IMAGES
confrontational stance with nearly a quarter of Pa., recently, Anastasia Mustian world, some adults are heading
the EU as the migration e-commerce sales spotted a flier promoting a new back to kindergarten.
crisis stokes tensions. A8 are expected to be activity there: BYOB coloring- Bill Sannwald, manager of
returned. B1 book parties. She snapped a the North Park Branch of the
Died: Ellsworth Kelly, 92,
picture of the flier and texted it San Diego library, began notic-
abstract painter and sculptor.
to several friends. ing earlier this year
On the ap- that when parents
CONTENTS Media & Mktg........ B4
Bookshelf................. A11
Business News.. B1-7
Crossword................. B6
Opinion............... A11-13
Sports.......................... B8
Technology............... B6
Currency Moves Pack Less Punch pointed evening,
Ms. Mustian
grabbed her coat,
brought their chil-
dren to craft ses-
sions, they weren’t
Global Finance........ C3 U.S. News............. A2-4 BY PAUL HANNON that way, and now a growing heading in very divergent di- snatched up a bot- just watching the
Heard on Street.... C6 Weather..................... B6 body of evidence suggests why: rections, possibly taking the tle of Cabernet children smear glue
Moving the Mkt.... C2 World News....... A6-9
As various central banks A shift in trade dynamics is value of their currencies along Sauvignon and told and glitter into
loosened monetary policy this blunting the impact of a weak with them. her teenage daughter she was sticky messes. “They were say-
> year, some economists pre- local currency. When a country loosens its heading out to color. “My ing, ‘Well, let me make a little
dicted another cycle of beggar- This could be all the more monetary policy, interest rates daughter was like, ‘Really? Col- something too,’ ” Mr. Sannwald
thy-neighbor currency wars, in relevant now, when the mone- fall and investors tend to pull oring?’ ” Ms. Mustian said. said. One mom twisted pipe
which countries race each tary policies of the world’s their money out in search of Yoga, Zumba and CrossFit cleaners into bug shapes. “I
other to become the cheapest most powerful central banks— higher yields elsewhere, push- weren’t enough to calm us could tell she was really proud
s Copyright 2015 Dow Jones &
Company. All Rights Reserved exporter. the Federal Reserve and the ing down the currency’s value. down. Angry Birds and Candy of it,” he said.
But it hasn’t panned out European Central Bank—are Please see TRADE page A2 Crush Saga may have helped Please see COLOR page A6
A2 | Monday, December 28, 2015 * **** THE WALL STREET JOURNAL.
U.S. NEWS
Freakish Weather’s Toll
Still Rising Across the U.S.
BY DAN FROSCH The storms triggered wide- tional Weather Service showed
spread airline cancellations, the Texas storm system pro-
A cluster of deadly torna- with Dallas-area airports and duced six tornadoes, which
does in North Texas was the others in Texas the worst hit. were notable for their intensity
latest in a succession of freak- The tracking site FlightAware during this time of year.
ish winter-weather events over registered more than 5,900 The system was still creating
the Christmas holiday that led flight delays and 1,536 cancella- blizzard conditions across the
to at least 43 deaths in parts of tions nationwide by late Sun- Texas panhandle and battering
the nation. day night—expected to be one parts of Texas and Oklahoma
The tornadoes on Saturday of the busiest travel days of the with rain, said Greg Carbin,
night killed 11 people, injured year with as many as 2.3 mil- warning coordinator for the
dozens and caused severe dam- lion passengers traveling at the National Weather Service’s
age spread out over a wide area Storm Prediction Center.
outside of Dallas, officials said. The storm system—still
Texas Gov. Greg Abbott on Sun-
Tornadoes in Texas powerful—was moving east and
day made disaster declarations claim 11 lives; flight northeast and was expected to
JERONIMO NISA/THE DECATUR DAILY/ASSOCIATED PRESS, MARK LAMBIE/THE EL PASO TIMES/ASSOCIATED PRESS
for four counties. diminish in severity by Monday
In the Midwest, 13 people
delays mount for after causing icing in many
died in flooding, the Associated holiday travelers states.
Press reported, while the death In Garland, Texas, a city of
toll linked to severe weather in about 235,000 some 20 miles
the Southeast rose to 19 on end of the holiday break. from Dallas, a tornado on Sat-
Sunday. American Airlines Group urday killed eight people and
Meanwhile, a snowstorm ac- Inc., whose main hubs are in left a large swath of damage,
companied by plunging temper- Dallas-Ft. Worth and Chicago, authorities there said.
atures was expected to leave up said it had canceled around 100 “We literally have structures
to 16 inches of snow in west flights out of the Texas airport. that don’t exist any more,” said
Texas and much of New Mexico Southwest Airlines Co., which Officer Joe Harn, a spokesman
through Sunday evening, ac- also has a large Texas opera- for the Garland Police Depart-
cording to National Weather tion, faced delays on almost ment. “We’ve had bad storms
Service meteorologist Brendon 1,000 flights, the tracking site in North Texas before, but this
Rubin-Oster in College Park, added. is one of the worst ones. I’ve
Md. Initial analysis from the Na- never seen this sort of devasta-
tion.”
In a rural portion of Collin
County, also in North Texas,
three people were confirmed
dead due to the same storm
system, said Lt. Chris Havey, of
the Collin County Sheriff’s Of-
fice.
Lt. Havey said that all three
were believed to have been in-
side structures when they were
killed, and added that one of
the deceased was an infant. Au- Snowstorms, tornadoes and flooding hit parts of the U.S. over the Christmas holiday. Top, a flooded
thorities were still searching street in Courtland, Ala., on Saturday. Above, heavy snowfall covered El Paso, Texas, on Sunday.
damaged structures for victims.
The full extent of damage in ditions improve,” the governor completely submerged. flooding.
Texas isn’t yet known, though added. In southern Missouri, six The death toll in the South-
it stretched from south of Dal- In Illinois, three adults and people died in flooding, accord- east tied to severe weather
las to northeast of the city. two children died in flooding ing to Pulaski County Sheriff reached 19 on Sunday when Al-
In New Mexico, Gov. Susana Saturday night after trying to Ronald Long, and one person abama authorities found the
Martinez declared a state of cross a flooded road in a car, was missing. Sheriff Long said body of a man whose vehicle
emergency due to the snow- according to Marion County that they died while trying to was swept away while trying to
storm and called out the Na- Coroner Troy Cannon. Heavy drive their vehicles across cross a bridge.
tional Guard. rains had left a nearby creek standing water. “The rivers are Heavy downpours have
“We have a lot of resources swollen with water and moving still rising, there’s a lot of dam- thrashed the southeastern U.S.
on the ground to clear our swiftly. According to the coro- age. We are seeing record since Wednesday, bringing re-
roads, as well as conduct ner’s office, the car drove into flooding down here,” he said. cord rain in some areas.
search-and-rescue operations. I several feet of water and was In Greene County, Mo., au- —Doug Cameron
ask New Mexicans to please swept downstream, where it thorities said two fatalities and the Associated Press
stay off the roads until the con- became stuck and eventually there were associated with the contributed to this article.
TRADE No Yen for Exports

A cheaper yen would normally boost Japanese exports, but the impact of
a weak currency on trade has diminished recently in many countries.
share.
A similar pattern has
emerged in the wake of the
ECB’s January decision to
Continued from Page One launch its own program of
That is still happening. But How many yen one U.S. Change from year earlier in quantitative easing. Like the
the dynamic isn’t affecting dollar buys Japanese export volumes yen, the euro weakened, con-
trade flows as much as ex- tinuing a decline against the
¥80 20%
pected. What has changed is dollar that started in early
where businesses source the 2014 and now amounts to
things they need to make the 10
roughly 20%.
100 Friday Nov.
products they export. Manufac- In early 2015, the launch of
turers once found most compo- ¥120.25 t3.1% QE was expected to boost euro-
nents needed to make their 0 zone growth by aiding exports.
120
goods at home. Now they in- But once again, the impact of a
creasingly look abroad for such weakened currency has been
inputs. As a result, exports now 140 –10 modest. Indeed, in the three
incorporate a lot more imports. Scale is inverted to show months to September, euro-
It is still the case that when weakening yen zone growth was held back by
a currency such as the euro 160 –20 a more rapid growth of im-
weakens, it reduces the price ports over exports, while in-
2013 ’14 ’15 2013 ’14 ’15
of goods sold by German man- dustrial output flatlined.
ufacturers in the U.S. But it Sources: Japanese Ministry of Finance (export volumes); WSJ Market Data Group (yen) Experts believe it takes
also increases the price of the THE WALL STREET JOURNAL. about 12 to 18 months for for-
things that German manufac- eign-exchange moves to have
VALUE PROPOSITION turers import to make those
exported goods.
tional Monetary Fund and the
World Bank have used those
Japan offers the clearest in-
dication that big currency de-
their full impact on trade
flows, so the effect would have
Measuring the impact of measures to assess whether preciations don’t deliver the been felt by now in both the
Best value in a large-cabin aircraft: global supply chains on trade currency movements have the export boost they once did. In eurozone and Japan. The euro
flows is the task of a project same impact they once did on early 2013, the Bank of Japan started weakening against the
three flexible living areas, unmatched payload, undertaken by the Organiza- exports and imports. They launched a massive stimulus dollar in early 2014, while
choice of a forward or aft galley. tion for Economic Cooperation found that the effect has in fact program that increased the Japan is about three years into
and Development and the reduced over time, by as much supply of yen and led to the its currency depreciation.
www.gulfstream.com World Trade Organization. as 30% in some countries. currency’s sharp depreciation Those disappointments
Using detailed figures from Policy makers are beginning against the dollar and the euro. don’t mean currency move-
economies around the world, to take note. “As countries be- That strategy was a key elements caused by the great di-
economists at the two bodies come more vertically inte- ment of Japan’s package of vergence between the Fed and
have measured how much for- grated via global value chains, measures designed to lift the the ECB won’t have any im-
eign content there is in each exchange-rate variations will economy out of a long period pact. That is a key concern for
nation’s exports, confirming a have a diminishing impact on of stagnant growth. But what U.S. businesses in the wake of
significant increase since the the terms of trade,” said Benoît followed was something of an the Fed’s decision this month
mid-1990s. The foreign content Coeuré, a member of the Euro- anticlimax. The yen’s weaken- to raise interest rates for the
of Switzerland’s exports, for in- pean Central Bank’s executive ing had little impact on ex- first time in almost a decade—
stance, increased to 21.7% in board, speaking in California ports, and failed to restart eco- just weeks after the ECB
2011 from 17.5% in 1995, while last month. He concluded the nomic growth. Puzzled policy moved its policy in the oppo-
the imported content of South process will reduce the role of makers pointed to the weak site direction. Many econo-
Korea’s exports almost dou- currency moves as “shock ab- state of demand in the global mists still expect the U.S. to
bled, to 41.6% in 2011 from sorbers” that direct global de- economy, but even if that were suffer some slowdown in ex-
22.3% in 1995. mand toward weaker econo- the case, Japanese exporters ports, while the eurozone en-
Economists at the Interna- mies from stronger ones. should have gained market joys some pickup. Already in
the first 10 months of 2015, the
U.S. trade deficit widened by
CORRECTIONS
THE WALL STREET JOURNAL (USPS 664-880)
(Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) 5.3% from a year earlier, re-
(Western Edition ISSN 0193-2241) flecting a decline in exports.
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
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All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of Lie Ping, an engineer, pre- currency movement boosts or
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
viously worked in Shenzhen’s reduces exports depends on
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Futian district. A World News how large their foreign content
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com article on Saturday about the is. For the economy as a whole,
SCOTT NEAL +1 912 965 6023 landslide in Shenzhen incor- the foreign share of U.S. ex-
scott.neal@gulfstream.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? rectly said he had worked in ports is at the lower end of the
CONTACT CUSTOMER SUPPORT. the Fengtian district. global range, at around 15%,
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THE WALL STREET JOURNAL. * * Monday, December 28, 2015 | A3
©T&CO. 2015
U.S. NEWS
DREW ANTHONY SMITH/GETTY IMAGES
INTRODUCING THE NEW

RETURN TO TIFFANY
®
A CLASSIC REINVENTED
CIRCLE DUO PENDANTS
Jason Moseley, right, and Phil Neumann joined others at a Dec. 12 pro-gun march close to the University of Texas campus in Austin.
Texas Tackles Open Carry 800 843 3269 | TIFFANY.COM

Businesses, churches wrestling with how to proceed. plaining the restrictions as re- officials worry that allowing
“We’re primarily a family quired by state law for places citizens to publicly carry fire-
debate approach to environment in terms of our of worship, according to a arms will put police officers at
new gun law; police restaurant. And so we decided spokeswoman. greater risk. In a February
it’s probably best not to allow Texas was one of only six survey taken before the law
chiefs fret over safety open carry,” said Al Flores, states to bar open carry until was passed, 75% of Texas po-
counsel for Gringo’s, which has the Republican-dominated leg- lice chiefs who responded said
BY DAN FROSCH 14 restaurants, mainly in the islature approved the new law they were opposed to open
Houston area and surrounding this year. As of October, there carry, according to the Texas
DALLAS—The owners of counties. “We just felt that were 922,197 active licenses to Police Chiefs Association.
Gringo’s Mexican Kitchen are knowing our customers, allow- carry concealed guns in Texas, Houston Police Chief
old hands at confronting the ing someone to walk in openly according to the state’s public Charles McClelland said he
typical challenges of the res- carrying a weapon, it would safety department. A separate worries that heightened con-
taurant business—hiring, com- make them feel a little uncom- license won’t be required for cerns about terrorism and
petition, even developing a fortable.” open carry. Under the law, mass shootings, coupled with
“gluten guide.” But recently Mr. Flores said the restau- guns will still typically be openly armed citizens, could
the Tex-Mex chain has been rant chain will post signs in banned in some places, such make for a potentially danger-
facing an unusual dilemma: English and Spanish, warning ous combination. “When my
whether to allow customers to customers about the prohibi- officers are responding to sit-
openly display their guns tion. A concealed gun would
There are 922,197 uations or disturbances where
while munching fajitas. still be permitted at Gringo’s. active licenses to a gun is involved, how are
Starting at the beginning of
the new year on Friday, li-
Others have taken a differ-
ent tack. First Baptist Church
carry concealed they supposed to know who
the good guy or the bad guy is Y O U K N O W I T.
guns in Texas.
censed firearms owners in
Texas will be able to openly
of Arlington, near Dal-
las, which typically sees some
with the gun?” he said.
In Colorado Springs, Colo., W E K N O W I T.
carry a handgun in most 2,500 worshipers each Sunday, where open carry is legal, a
places. A law signed by Repub- will allow open carry. as courthouses, sporting woman called 911 in October
lican Gov. Greg Abbott earlier Senior Pastor Dennis Wiles events and businesses that get to report seeing a man armed
this year will make Texas the said the church came to its de- 51% or more of their profits with a rifle.
most populous state in the cision after discussing the from the on-site consumption According to 911 audio re-
U.S. to allow the practice, matter with its legal team—in of alcohol—like bars. cordings released by the Colo-
known as “open carry.” addition to congregants, in- Supporters of the new law, rado Springs Police Depart-
Existing Texas law requires cluding police officers who al- like the Texas gun-rights ment, the dispatcher informed
licensed gun owners to con- ready carry concealed guns. group Open Carry, said the the woman that Colorado is an
ceal their handguns so they “We decided it was best to law would help owners of open-carry state.
aren’t in plain view. The new allow responsible people to do large-caliber handguns, who According to police, the dis-
law will allow them to carry this if they choose,” Mr. Wiles previously had to worry about patcher subsequently desig-
handguns openly, in belt or said. how to conceal their weapons. nated the call as one that
B E I N G C L O S E M AT T E R S .
shoulder holsters. In contrast, the Roman “We shouldn’t have to dress didn’t involve an imminent life We provide service from more than 5,000
But private businesses and Catholic Diocese of Dallas de- around our ability to carry,” threat. Shortly afterward, the airports worldwide – so you’re never far from
other establishments have the cided to ban open carry in its said C.J. Grisham, the group’s man shot and killed three peo-
right to ban open carry under 75 churches in North Texas, president. ple before dying in a shootout
your next unforgettable moment.
the law, and many have been and it is erecting signs ex- But some law-enforcement with police. Visit netjets.com/knowit or call 877-JET-4454
Chicago Police Draw More Scrutiny NetJets is a Berkshire Hathaway company. Aircraft are managed and
BY DAN FROSCH then called the police. She de- operated by NetJets Aviation, Inc. NetJets is a registered service mark.
scribed her son as a successful ©2015 NetJets IP, LLC. All rights reserved.
The day after a double fatal college student who had strug-
shooting by Chicago police, the gled with issues at times but
family of a 55-year-old black wasn’t angry or violent.
woman who was mistakenly A spokesman for Northern
shot and killed in the incident Illinois University in DeKalb
demanded answers from said that Mr. LeGrier was a
Mayor Rahm Emanuel and the sophomore at the school ma-
city’s police department. joring in engineering.
Police said Bettie R. Jones “Something needs to be
was accidentally shot and done. Seven times my son was
killed early Saturday by an of- shot,” Ms. Cooksey said. “He
©D.YURMAN 2015
ficer responding to a domestic might have been angry with

disturbance at the apartment his father and they might have
building where she lived. Her gotten into it, but he never
relatives said at a news confer- had combative behavior.”
ence that police too often re- In an interview, Antonio
SCOTT OLSON/GETTY IMAGES
sorted to deadly force before LeGrier, Quintonio’s father,

determining the circumstances said his son had been upset
of a situation. that day because of a family
Officers responded to a dis- dispute and tried to break
turbance that involved a down his father’s bedroom
neighbor, Quintonio LeGrier. door early Saturday morning.
The black 19-year-old also was Mr. LeGrier said he called
shot and killed by the officer, Janet Cooksey, mother of teen shot and killed by Chicago police. the police and also called
according to police and Mr. downstairs to Ms. Jones,
LeGrier’s family. and for Mr. Emanuel to take a curred after police responded warning her not to open her
“While I am tempted to feel more aggressive stand as he to a domestic disturbance and door until officers arrived. He
hate for all of the Chicago po- seeks to improve the relation- were confronted by a “combat- also said that Ms. Jones told
lice force, this is a difficult ship between law enforcement ive subject.” That led to the him that she had seen his son
time to get past in our city,” and the black community. firing of the officer’s gun, and outside with a baseball bat.
said Jahmal Cole, Ms. Jones’s Last month, the city re- the deaths of Mr. LeGrier and Hearing shouting, and worried
nephew, who called for calm. leased a dashboard video of Ms. Jones. about Ms. Jones’s safety, he
“This is not the time for vio- the October 2014 death of According to friends and headed downstairs when he
lence.” Laquan McDonald, 17, who was family, Ms. Jones, a mother of heard gunfire. “I saw my son
The shooting comes amid shot 16 times. Police officer five who worked at a bread lying facedown in the lady’s
continuing tensions between Jason Van Dyke was charged factory, was celebrating doorway,” he said.
police and minorities in the with first-degree murder in Christmas with friends when Mr. LeGrier said he heard
city. Earlier this month, the the shooting. Mr. Van Dyke’s she heard a commotion and one of the officers say that he
Justice Department launched a lawyer has said he was pro- stepped outside. She was then had made a mistake. “I wit-
sweeping probe into the de- tecting himself and others struck and killed by a police nessed the officer shouting: ‘I
partment’s use of force and when he shot Mr. McDonald. officer’s gunfire, they said. saw the bat and I just thought
treatment of minorities. On Sunday, Mr. Emanuel Mr. Guglielmi called Ms. he was lunging at me.’ ” Mr.
After initially opposing the called on the police depart- Jones’s death “a tragic acci- Guglielmi had no comment in
investigation, Mr. Emanuel ment and the city’s Indepen- dent.” Police haven’t released response to Mr. LeGrier’s ac-
now backs the inquiry and has dent Police Review Authority the name or race of the officer count of the officer’s remarks.
vowed the city will cooperate to immediately re-evaluate involved. According to the Cook belmont® collection
with federal authorities. how officers are trained when At the Sunday news confer- County Medical Examiner, Ms.
The probe also comes as the handling calls involving men- ence, Mr. LeGrier’s mother, Jones was killed by a gunshot
Chicago Police Department tal-health issues. Janet Cooksey, said she be- wound to the chest and Mr. D A V I D Y U R M A N . CO M 8 8 8 - D Y U R M A N
faces a growing chorus of calls Police spokesman Anthony lieved her son had gotten in a LeGrier’s death was due to
for increased accountability Guglielmi said the shooting oc- dispute with his father, who multiple gunshot wounds.
A4 | Monday, December 28, 2015 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X THE WALL STREET JOURNAL.
U.S. NEWS
Wanted: More Pilots for Drone Duty

Air Force looks beyond craft such as the MQ-1 Preda- buildings in places like Creech that plan relies not just on the
tor and the MQ-9 Reaper. Air Force Base, 50 miles from Air Force but on civilian con-
officers, allowing A decision to open the ca- Las Vegas, to operate the re- tractors, Army drone opera-
enlisted personnel to reer field by allowing enlisted motely controlled aircraft over tors and Special Operations
personnel to operate drones countries including Iraq and Command personnel.
operate some craft has been much anticipated. Afghanistan. Retired Air Force Lt. Gen.
Ms. James took a small step, “If there isn’t going to be a David Deptula, who headed
BY GORDON LUBOLD announcing that by next year decrease in demand, and if the ISR directorate before
enlisted airmen could fly the there’s going to be continued stepping down in 2010, wel-
The military’s increasing RQ-4 Global Hawk, a $130 mil- pressure to cap the size of the comes the decision to open
demand for drones has forced lion, 50-foot, unarmed and re- force, then we have to look at the drone career field to en-
CHRISTOPHER BOITZ/ZUMA PRESS

changes in the Air Force’s “fly- motely piloted aircraft that options,” said Col. Tadd Shol- listed personnel as long as op-
boy” culture over the years, plays a critical role in provid- tis, a spokesman for Air Com- erators get sufficient training.
plucking pilots out of the ing ISR around the world. bat Command, in Langley, Va. While he was on active
cockpit and sending some to The move might pave the “This step to allow enlisted pi- duty, Gen. Deptula oversaw a
high-tech desert trailers to op- way for enlisted airmen to lots to fly Global Hawks does 650% increase in demand for
erate remotely piloted aircraft, play a larger role in other that for us.” high- and medium-altitude
leaving their proverbial white drone platforms, officials said. The Air Force has about drone operations, he said.
scarves at home. “As far as I’m concerned, 970 pilots operating MQ-1 and “There’s not a bigger
As the need keeps growing the enlisted force can do any- A U.S. Air Force RQ-4 Global Hawk drone at a base in Qatar. MQ-9 drones and about 200 [drone] fan than me,” said the
for drones and their valuable thing, as long as they get the RQ-4 pilots. former F-15 pilot.
ISR—intelligence, surveillance proper training to do it,” Ms. U.S. military contends with not piloting drones. Drone operations are con- Officials moved carefully to
and reconnaissance—due to James said in a recent inter- budget and personnel cuts. But the wars in Iraq and Af- ducted according to what the make sure they could effec-
the rise of Islamic State and view in her Pentagon office. The Air Force move is a sig- ghanistan, and operations in military calls “combat air pa- tively train enlisted personnel
other threats, the Air Force is The Air Force faced reten- nificant shift for a service that North Africa, have created a trols,” measured by the num- to fly drones, taking a deliber-
embarking on yet another cul- tion, morale and training is- has appeared to resist it. Some huge demand for the work of ber of flights in a 24-hour pe- ative approach, even though
tural shift. For the first time, sues as its limited force of in the ranks still worry that al- drone operators. With few, if riod. The Air Force had been other military branches have
it is allowing enlisted person- drone operators—all officers— lowing enlisted airmen to fly any, troops on the ground in flying about 65 CAPs a day. allowed enlisted personnel to
nel, not just officers, to pilot attempted to fulfill the de- drones could diminish the those places, the need for But to address the stress on fly them. But there’s a differ-
some drones. mand for more operations. prestige of a job for which the drones has only heightened. the force, officials requested a ence, Gen. Deptula said. The
This month, Air Force Sec- Ms. James said the Air Air Force was already strug- Over the years, the Air reduction to 60 CAPs a day. Army has long allowed sol-
retary Deborah Lee James an- Force needed to be creative. gling to create an allure. Force pushed pilots who al- At the same time, the Pen- diers to fly drone platforms
nounced a series of moves to “We need more people infused Many officers arrive with ready had become certified on tagon adopted a plan, now un- such as the Raven. But “a Ra-
alleviate some of the stress on into the system,” she said. dreams of flying F-15s, F-16s conventional airframes like der way, to expand the num- ven is 4 pounds and doesn’t
the drone crews that operate The change comes as the and other, newer jet fighters, F-16 fighters into dark metal ber to 90 a day by 2018. But drop anything,” he said.
Troubled Michigan City Wants Return to Home Rule

BY KRIS MAHER Entrepreneurs and develop-
Rising Fortunes ers are returning. One is restor-
PONTIAC, Mich.—When Pontiac’s year-end fund balance ing a historic downtown the-
Mayor Deirdre Waterman improved dramatically after ater. There are lingering
wanted to trumpet the economic emergency managers cut staff tensions, however, at City Hall.
recovery of this city of 60,000, and outsourced many services. During a recent council
she couldn’t turn to a municipal meeting, members sparred
public-relations worker or com- 2015: $10.8M* with Mr. Sobota. And several
$10 million
munity-development staffer. residents complained that Mr.
Those positions were wiped out Sobota and the previous emer-
by state-appointed emergency 0 gency managers shortchanged
managers several years ago, the city. Among other things,
when the city’s staff of more they said properties were sold
TIM GALLOWAY FOR THE WALL STREET JOURNAL
than 500 was cut to 30. –10 off too cheaply and that the
Today most employees ad- city doesn’t have enough fire-
minister contracts for essential –20 fighters under its contract with
services such as policing and a nearby township.
street cleaning that have been One resident of Pontiac—
transferred to other districts or –30 which is 52% African-American,
privatized. 27% white and 17% Hispanic—
Instead, Ms. Waterman called Mr. Sobota, who is white,
–40
tapped three interns from Oak- a “plantation overseer.” Mr. So-
land University in Rochester, FY’04 ’06 ’08 ’10 ’12 ’14 bota said the criticism doesn’t
Mich. The students produced a *Unaudited Note: Fiscal year ends June 30 faze him.
newsletter that was mailed to Source: City of Pontiac, Mich. Ms. Waterman, an ophthal-
Pontiac’s 25,000 homes. “Those Pontiac Mayor Deirdre Waterman is running the city of 60,000 with the help of college interns. THE WALL STREET JOURNAL. mologist who earns $100,000 a
jobs would have been done by year as mayor, said she is fo-
city employees—if I had city scale back. But the severe prob- tiac’s board has four members rate was 10.7% in September. 2011 to 2013, takes credit for the cused on attracting new busi-
employees to do that,” said Ms. lems in some Michigan munici- who hold finance-related posi- Many residents moved away recovery and yet says it is still nesses and cleaning up blight.
Waterman, who works out of a palities—already hard hit by tions in local, county and state and property values declined, not time for business as usual in There are up to 1,000 vacant
nearly vacant City Hall. the decline of the auto indus- government. leaving abandoned houses, Pontiac. “I financially fixed the lots within the 20-square-mile
The internship program with try—forced cuts that struck at Pontiac, which once had bloated expenses and sharply city big-time,” said Mr. Schim- city. She backs a proposal to
the university has given the the heart of government. 85,000 residents and played lower revenue. The city had mel who still wields power as an tear down the desolate Silver-
mayor a de facto staff, and the Detroit declared the largest host to the Detroit Lions in the three emergency managers be- advisory board member. “We dome and redevelop the site.
students some real-world expe- municipal bankruptcy in U.S. Silverdome, has endured trouble tween 2009 and 2013. The last don’t feel that we’re comfort- In the city’s newsletter, an
rience. But it also points to ten- history in 2013 and emerged common across the Rust Belt. In one appointed Joseph Sobota able leaving right now.” article by journalism major An-
sions among the mayor and from reorganization last year. addition to the Lions moving to as city administrator and he Today, Pontiac has a surplus thony Spak describes how va-
City Council, who have no party Emergency Manager Kevyn Orr Ford Field in Detroit, Pontiac runs Pontiac on a daily basis. of $10.8 million, or about 30% cant lots have been turned into
affiliations, and state-appoin- returned the reins of govern- lost a total of nearly 3,000 jobs State officials are weighing of its roughly $32 million bud- areas where people can gather.
tees in this economically recov- ment to the mayor and City when General Motors shut a whether to completely hand get, its third straight surplus. “It’s nice to be a part of some-
ering city where elected offi- Council soon after. But Pontiac truck-assembly plant in 1994 back power to the city. “I’m Revenues are rising as more thing where you see the city
cials still have little control and five other Michigan munici- and another in 2009. Today, ready to go back to home rule,” residents are paying property changing, see it growing and
over daily functions. palities still are overseen by many residents still work at Ms. Waterman said. taxes and the city has pushed becoming a place where people
The financial crisis has transition advisory boards ap- other GM sites or for the county Louis Schimmel, who served to collect delinquent income aren’t afraid to hang out,” he
forced cities nationwide to pointed by the governor. Pon- or a hospital. Pontiac’s jobless as emergency manager from taxes, officials said. said in an interview.
CRUZ Ahead in Iowa

Ted Cruz tops the polls in the Hawkeye State with five weeks
able.
“If you want someone to
grab a beer with, I may not be
Sanders Sees Trump
Continued from Page One
Texas senator is coming un-
remaining before Iowa’s first-in-the-nation voting.
30% Cruz
that guy,” Mr. Cruz said at the
third GOP presidential debate,
in Colorado, when asked to
Backers as His Allies
der fresh scrutiny. A central describe one of his weak- BY FELICIA SCHWARTZ America, and create a middle
question is whether voters Trump nesses. “But if you want class that works for all of us,
will react with the enthusiasm someone to drive you home, I Democratic presidential can- rather than an economy that
of the grass-roots or the sour 20
will get the job done.” didate Bernie Sanders said works just for a few,” he said.
opinion of Senate colleagues. The hostility of his col- Sunday he thinks he can per- The broad national anxiet-
The latest Wall Street leagues sometimes hampers suade supporters of Republican ies about the economy and the
Journal/NBC News poll found Mr. Cruz in the Senate. When front-runner Donald Trump to role of Washington, which
that 82% of people who iden- he tried to offer amendments back him in the 2016 race. have upended the Republican
tify themselves as “very con- Rubio on Planned Parenthood fund- Mr. Sanders, an Indepen- primary battle, have also
10
servative” view him posi- Carson ing and the Iran nuclear deal dent senator from Vermont, driven the unlikely candidacy
tively. Among swing voters, this fall, colleagues refused to said on CBS that his message of Mr. Sanders, whose views
only 26% had positive feelings Bush give the procedural go-ahead about economic inequality can on policy put him to the left of
about him. Other that is routinely granted as a appeal to Trump backers who many in the Democratic Party.
Former Sen. Bob Dole, the 0 candidates matter of courtesy. are angry about lower wages While the two men are po-
GOP’s 1996 presidential nomi- Nov. Dec. Mr. Cruz responded with a and job losses. lar opposites in many ways,
nee, said he would have a Note: Moving average of several major polls harsh critique of his party’s “Many of Trump’s support- their campaigns are designed
hard time bringing himself to Source: RealClearPolitics THE WALL STREET JOURNAL. leaders. ers are working-class people to appeal to the same sense of
vote for Mr. Cruz. “I might “I will give President and they are angry,” Mr. Sand- unease, seen in polling data,
oversleep that day,” Mr. Dole doesn’t take himself too seri- It catapulted Mr. Cruz into Obama and the Senate Demo- ers said. “What Trump has among Americans who don’t
said recently on MSNBC. “It ously,” said Joel Kurtinitis, a hero status among conserva- crats credit,” Mr. Cruz said. done successfully, I would say, think they can get a fair shake.
would be difficult.” Cruz supporter in Iowa. tives but undercut Republi- “They are willing to crawl is take that anger, take that Mr. Trump took exception
Cruz spokesman Rick Tyler That description is foreign cans trying to build the over broken glass with a knife anxiety about terrorism and in a tweet after Mr. Sanders’s
said senators’ hostility to Mr. to his Republican critics in party’s governing bona fides. between their teeth to fight say to a lot of people in this TV appearance: “Bernie Sand-
Cruz had no bearing on his Congress. Sen. John McCain, He also urged House conser- for [their] principles. Unfor- country, look, the reason for ers—who blew his campaign
prospects as a presidential who called Mr. Cruz and his vatives to defy then-House tunately, leadership on my our problems is because of when he gave Hillary a pass on
candidate. “They hate him in allies “wacko birds” in 2013, Speaker John Boehner, who side of the aisle does not Mexicans…or he says about her email crime, said that I
the Senate because he’s not bridled last summer when the last year called Mr. Cruz a demonstrate the same com- the Muslims, they are all ter- feel wages in America are too
going to assimilate into their Texan accused Majority “jackass” at a Colorado fund- mitment.” rorists, and we got to keep high. Lie!”
culture,” he said. “They don’t Leader Mitch McConnell of ly- raiser. Mr. Cruz argues that his them out of this country.” Mr. Sanders is polling sec-
want change, and the voters ing about a legislative matter. “Part of his raising of his undiluted conservatism will Mr. Sanders said he aims to ond to former Secretary of
do.” In the context of the sedate profile, a critical part, is not be more successful than the sway working- and middle- State Hillary Clinton in the
Many of his supporters say Senate, Mr. Cruz’s criticism that he is the most conserva- tack-to-the-center campaigns class Trump supporters that most recent average of na-
they are baffled by his reputa- was like shouting a profanity tive and able to accomplish of past presidential nominees the Republican’s policies are tional polls, trailing her by
tion in Washington. On the in a church sanctuary. the most. It is that he is con- such as Messrs. Dole and Mc- ill-suited to placate their fears. about 15 percentage points.
campaign trail, they see a “I think he attacked Mitch servative and everyone else is Cain. When Mr. Dole endorsed “We can make the case that He said on Sunday on CBS
man greeting voters, posing McConnell because he not,” said Josh Holmes, a for- Jeb Bush for president in No- if we really want to address that he won’t “wage horrible
for photos, joking around and thought it would help him,” mer senior adviser to Mr. vember, he returned the the issues that people are con- attacks” against Mrs. Clinton
mimicking movie scenes for a Mr. McCain said. “It probably McConnell. “Which is untrue, swipe. cerned about, why the middle to boost his standings. In-
laugh. did.” and it shows colleagues he is “There are a lot of good class is disappearing, massive stead, he said he would con-
“People in Iowa have been Many Republicans were in- not really interested in their candidates—I like nearly all of income and wealth inequality trast his views with Mrs. Clin-
able to spend a lot of time furiated by Mr. Cruz’s 2013 shared goals.” them,“ Mr. Dole said in an in this country, that we need ton’s, particularly on foreign
with the senator and have strategy of pushing a budget Mr. Cruz has sought to ABC interview in November. policies that bring us together, policy. Unlike Mrs. Clinton, Mr.
found him to be a humble and fight over health-care funding make light of the rap on him Then he whispered, “Except that take on the greed of Wall Sanders said he doesn’t sup-
engaging man who just into a government shutdown. as arrogant and unapproach- Cruz.” Street, the greed of corporate port a no-fly zone in Syria.
THE WALL STREET JOURNAL. Monday, December 28, 2015 | A5
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A6 | Monday, December 28, 2015 * **** THE WALL STREET JOURNAL.
U.S. NEWS
Attack Highlights Visa Overstays

BY MIRIAM JORDAN land, Maine-based nonprofit
U.S.
Watch
said in a statement that it
The San Bernardino, Calif., doesn’t disclose information
attack this month put the about individual participants. CALIFORNIA
spotlight on a type of visa is- It said it sponsored 29,000 in-
sued to a wide swath of for- dividuals on J-1 visas last year
Wildfire Controlled
eigners, from camp counselors and most of them came for North of Ventura
to physicians, and how easy it summer work-travel programs Hundreds of firefighters on
is for recipients to remain in that last three or four months. Sunday mopped up the rem-
the U.S. after the visa expires. Once a visitor’s program nants of a wind-whipped wildfire
A Russian woman who mar- ends, the sponsor is required that threatened dozens of
ried Enrique Marquez Jr., the to update his or her status in a Southern California coastal
man accused of buying rifles database maintained by the homes. Authorities said their
used in the Dec. 2 attack, en- DHS, known as Sevis, or Stu- new worry is a landslide if rain
ALEJANDRO TAMAYO/ZUMA PRESS

tered the U.S. six years ago on dent and Exchange Visitor In- pounds the charred hills.
a three-month educational-ex- formation System. The fire that scorched about
change visa, known as a J-1 DHS reviews Sevis records 1,230 acres north of Ventura
visa. After the visa expired she for potential violations and re- was 75% contained, with full
remained for several years in fers cases that pose security containment expected Tuesday,
the U.S. without legal status, concerns to field offices for fire officials said.
according to law-enforcement further investigation, accord- The blaze erupted Friday
officials. ing to a DHS spokeswoman. night when high winds downed
Mr. Marquez has been As with other foreigners in power lines on an oil field.
charged with entering into a A Customs checkpoint in San Diego. Foreigners holding J-1 visas often fail to leave when they expire. the country illegally, the DHS At its peak, the fire closed a
sham marriage with Mariya doesn’t attempt to locate visa 15-mile stretch of an adjacent,
Chernykh to enable her to ap- that nothing is going to hap- “Visa overstays are a long- U.S. consulates issued 331,068 overstays unless a person has six-lane freeway, U.S. 101, and
ply for permanent residency in pen if they overstay.“ standing challenge for immi- such visas to applicants from committed a crime or is in po- another major north-south route,
the U.S. Mr. Marquez also is About 11 million people re- gration enforcement,“ said 200 countries, a typical annual lice custody, the spokeswoman the Pacific Coast Highway.
charged with conspiring to side in the U.S. without legal Marc Rosenblum, deputy di- allotment. It rejected 42,792 said. Thus, it is unlikely that The winds eased Saturday,
support terrorism. status, according to the Pew rector for U.S. immigration applications, for reasons such Ms. Chernykh would have and the fire stopped growing.
Ms. Chernykh isn’t sus- Research Center. It estimates policy at the Migration Policy as concern a person intends to raised any red flags. Evacuation orders for about 50
pected of involvement in the that 40% to 50% of them are Institute, a nonpartisan think overstay a visa. It is unclear After overstaying her three- homes in Solimar Beach were
attack, according to law-en- overstaying visas, including tank. “Overstay enforcement how many visa overstays are month visa by several years, rescinded.
forcement officials. But her tourist, student and educa- has never been a top priority, J-1s, one of the larger among Ms. Chernykh married Mr. On Sunday, about 300 fire-
case highlights the challenge tional-exchange ones. The rest and completing a system to re- dozens of visa categories. Marquez on Nov. 29, 2014. fighters were busy dousing
of deterring and identifying typically entered the U.S. liably identify and track over- According to law-enforce- That made Ms. Chernykh eligi- hotspots in a stretch of coastal
people who enter the country through Mexico. stayers remains years away.” ment officials, Ms. Chernykh ble to apply to become a legal land that was thick with
legally under a visa but fail to The Department of Home- The goal of the J-1 exchange came to the U.S. on a J-1 pro- U.S. permanent resident. drought-dry brush.
leave by the stipulated date. land Security in 2013 began visitor program, which is run gram offered by the Council on A day after the attack, she In a heavy rain, the denuded
“The J-1 category is a huge, comparing entry data for for- by the State Department, is to International Educational Ex- was due at a DHS office for a soil could threaten nearby rail-
catchall category for all sorts eigners against flight mani- promote interaction between change, one of many organiza- green-card interview, accord- road tracks, U.S. 101 and the Pa-
of purposes, and it’s relatively fests to see who leaves. But foreigners and Americans to tions accredited by the State ing to law-enforcement offi- cific Coast Highway.
easy for people to use,” said this doesn’t address those who advance academic or profes- Department to match foreign- cials. Officials wouldn’t com- —Associated Press
immigration expert Marga- remain in the country illegally, sional pursuits and foster cul- ers with opportunities in the ment on whether she might
ret Stock. “Some J-1s come and Homeland Security agents tural understanding. U.S. face any charges or deporta- COLORADO
here, they love America and don’t typically track down visa There is no limit on the In response to questions tion because of the continuing
they hear the misinformation overstays. number of J-1s. In fiscal 2014, about Ms. Chernykh, the Port- investigation.
Pot Bank Seeks
Access to Fed System
The Fourth Corner Credit
Highway Closed Union, which Colorado set up
last year to serve the mari-
For Demolition juana industry, will ask a fed-
eral judge Monday to require
Of High Bridge the Federal Reserve to let pot
shops access the nation’s bank-
The Greenfield Bridge in ing system.
Pittsburgh, which carries traffic Federal banking regulators
above Interstate 376 near have issued guidelines for how
Schenley Park and the Squirrel banks can accept money from
Hill and Greenfield neighbor- marijuana sales, but banks fre-
hoods, is scheduled to be im- quently say those guidelines are
ploded on Monday. unwieldy. That leaves many pot
Authorities in western Penn- shops stuck trying to pay bills
sylvania said drones will be and taxes in cash.
banned from the airspace No major marijuana-related
around the bridge during the cash heists have been reported
span’s scheduled demolition. in Colorado, but the cash-intense
The Pittsburgh Post-Gazette nature of the industry leaves
said that if all goes according many in the business feeling
to plan, explosives planted by nervous about operating in cash.
Dykon Explosives Demolition The Federal Reserve says
Corp. and Kesco Inc. will crum- that despite the guidance about
ble the 94-year-old bridge onto banking from the Treasury De-
a dirt pillow set up on the partment, the money can’t be al-
highway below it without caus- lowed into the nation’s central
ing any damage to the pave- banking system as long as the
ment. drug remains illegal under fed-
Ahead of the demolition, the eral law.
interstate highway, known lo- —Associated Press
KEITH SRAKOCIC/ASSOCIATED PRESS
cally as Parkway East, was

closed on Sunday. Plans call for OBITUARY
the key commuter route to re-
open on Friday.
Oscar-Winning
The Greenfield Bridge has Cameraman Dies
been closed since October and Haskell Wexler, the two-time
will be replaced by a new span Oscar-winning cinematographer
scheduled to open by May and prominent social activist,
2017. died Sunday at age 93, according
to his son, Oscar-nominated
sound director Jeff Wexler.
Mr. Wexler’s innovative ap-
COLOR The result, “The Creative

Colouring Book for Grown-
Ups,” was published in the U.K.
in May 2012, boasting high-
psychologists,” says Anne Le
Meur, editorial manager for
nonfiction reference books at
Hachette Pratique. “It has real
guin Books, an imprint of
Penguin Random House. Her
newest title, “Lost Ocean,” was
published in October. Her fans
“Some people like to work
out,” Ms. Gaydos said. “I like to
color.”
In San Diego, Elizabeth Man-
proach to film helped him win
Academy Awards for “Who’s
Afraid of Virginia Woolf?” and
the Woody Guthrie biopic
Continued from Page One grade paper and sophisticated antistress effects like mindful- bombard her with online sug- sur, a health and wellness “Bound for Glory.”
Mr. Sannwald decided to illustrations. In 2016, says Mr. ness and meditation.” gestions. “People seem really coach, holds monthly two-hour He also photographed some
start craft programs for adults. O’Mara, the house will offer The current queen of the keen on an outer space [color- “Color Yourself Calm” sessions of the most politicized and in-
The library recently offered adult coloring books that in- category is a shy 32-year-old il- ing] book,” she said. “I have to in her home for up to 10 peo- fluential films of the 1960s and
Stress Relief Through Doodling. clude a frame. “I’m in love with lustrator, Johanna Basford, who remind them that space is es- ple. The fee is $5. First, she 1970s, including the Jane
Now he is preparing to join words and I love literature,” works in the attic of her rural sentially a big black mass.” said, “we sit and meditate for Fonda-Jon Voight anti-war clas-
hundreds of other public librar- said Mr. O’Mara. “Now I’m home near Aberdeen, Scotland, The coloring fad also has a five minutes to calm everybody sic “Coming Home,” and the ra-
ies across the country offering known as the guy who pub- and used to draw pictures for stressful side. Mia Galison, down.” Then come introduc- cial drama “In the Heat of the
coloring sessions for grown- lishes books with no words.” vodka bottles and book covers. owner of eeBoo Corp., a New tions, tea and cookies. Cell- Night,” as well as the Oscar-
ups. A month after “The Creative Her “Secret Garden” and “En- York-based designer of educa- phones are turned off. Ms. winning adaptation of Ken
At the Dormont library, Ms. Colouring Book for Grown-Ups” chanted Forest” coloring books, tional toys and other products, Mansur plays calming music Kesey’s “One Flew Over the
Mustian, a 49-year-old mother went on sale in the U.K., it was published by Laurence King in August noticed a spike in de- and lights lavender-scented Cuckoo’s Nest.” He was the rare
of two, was so absorbed in col- published in France by Ha- Publishing Ltd., are among mand for colored pencils. Since candles. After the coloring, the cinematographer known enough
oring an intricate elephant that chette Pratique, an imprint of 2015’s top 20 best-selling books then, her sales of the pencils, participants show one another to the general public to receive
she nearly forgot her wine. She Hachette Livre, under the name in the U.S., according to Nielsen including a 24-piece set that re- their pictures and discuss a star on Hollywood’s Walk of
and her friends agreed that col- “Art-thérapie: 100 Coloriages BookScan. She has said she tails for about $13, have been “their feelings about it,” Ms. Fame.
oring was a potent stress Anti-Stress.” It was published likes to “hide little curiosities three or four times higher than Mansur said. —Associated Press
buster. in the U.S. in 2013. within each illustration.” normal, and she keeps running Randi Levin of Bergen
“It’s just mindless and fun,” “We thought that coloring Ms. Basford jumped to a dif- out. It takes about six months County, N.J., also was quick to GEORGIA
said Diane Barna. “There’s no was close to the art-making ferent publisher this year, strik- between making an order and see the potential in coloring.
right or wrong.” process used in art therapy by ing a two-book deal with Pen- receiving the pencils from her Ms. Levin calls herself a transi-
Airport Says It Set
Seated across the table, supplier in Taiwan, so she is tional reinvention coach (“a Passenger Record
Krista Reed said: “No one’s cri- struggling to guess how strong fancy way of saying life doesn’t Hartsfield-Jackson Atlanta
tiquing you.” demand will be in June. play out in a straight line”). In International Airport, which
Eight of the top 20 selling “There’s a risk that the fad October, she began holding two- calls itself the world’s busiest,
books on Amazon currently are will abruptly burn out,” Ms. hour Recoloring Life workshops announced on its social media
coloring books designed for Galison said, but she hopes to for $30 to $50 a person. “We sites Sunday that it served its
adults. These books tend to be establish a longer-term niche in talk about what colors mean 100 millionth passenger this
much more finely detailed than high-end colored pencils. and why you might gravitate to year. That makes it the first
JAMES R. HAGERTY/THE WALL STREET JOURNAL
those for children. Popular top- Jenna Gaydos, who works a certain one,” Ms. Levin said. airport to serve that number of
ics include animals, fish, flowers for a commercial real-estate What happens when adults passengers in one calendar
and mandala spiritual symbols. firm in Chicago, received an tire of coloring? Little, Brown & year.
Michael O’Mara Books Ltd., a “Enchanted Forest” book and Co., a publishing division of Ha- The passenger earning the
British publisher, says it got the 64 Crayola markers as a wed- chette Book Group, thinks it has distinction is Larry Kendrick of
ball rolling. “A staffer said how ding shower gift this year. the answer. In January, it plans Gulfport, Miss., who will receive
embarrassed she was to see her The 27-year-old prefers to sit to bring out the first two books a Nissan Altima, two free Delta
mother coloring and getting alone at home when she colors, in a series of connect-the-dot Air Lines round-trip plane tickets
enormous enjoyment,” says Mi- sometimes while listening to titles for grown-ups. and a $500 gift card.
chael O’Mara, founder and classical music. Before the ad- “A lot of people think that’s Hartsfield-Jackson general
chairman. “We thought, ‘Why vent of adult coloring books, where this will go,” said Carina manager Miguel Southwell says
not have a stab producing a she occasionally bought the Guiterman, an assistant editor. the airport had a 5% increase in
coloring book aimed at Beverly Piacquadio, left, and Louella Pikras, who have been friends children’s variety but found “We haven’t seen the end of passenger count this year.
adults?’ ” since high school, color pictures at a library in Dormont, Pa. them too simple. creative expression.” —Associated Press
THE WALL STREET JOURNAL. * * * * Monday, December 28, 2015 | A7
WORLD NEWS
Argentina Resets Approach to Vital Data
New president moves
Competing Prices
to revamp a national Argentine mathematician Graciela Bevacqua was censured because
statistics agency long her inflation estimates differed from the Kirchner administration’s.
How they compare:
seen as unreliable 6%
BY RYAN DUBE
5
BUENOS AIRES—Mathema-
tician Graciela Bevacqua still 4
recalls the humiliation she felt
when she was forced from her 3
job at Argentina’s statistics
agency for refusing to doctor 2
MARCOS BRINDICCI/REUTERS
data. She was depressed, had Bevacqua's

money problems and then estimate
1
faced a criminal investigation Official
for later releasing her own in- rate
flation estimates. 0
Today, nine years later, she 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15
is back, now in the No. 2 posi- Note: Measured as monthly change in consumer prices
tion at the agency known as Indec director Jorge Todesca, Finance Minister Alfonso Prat-Gay and policy secretary Pedro Lacoste Sources: Bevacqua; INDEC THE WALL STREET JOURNAL.
Indec. She is trying to orga-
nize a tarnished agency’s data 56-year-old Mr. Macri, a for- bonds to importers, who were were necessary to correct fis- Indec’s problems began in prosecutor at the time, Manuel
collection as part of President mer Buenos Aires mayor, said denied dollars by Mrs. Kirch- cal imbalances and kick-start 2006, when workers say Mr. Garrido, who investigated the
Mauricio Macri’s feverish push recently. “We aren’t going to ner’s administration. the economy, which hasn’t Kirchner’s commerce secre- case. Days later, Indec data
to overhaul 12 years of popu- resolve the problems from one The bonds, which will have grown in four years. tary, Guillermo Moreno, showed January inflation at
list economic policies and re- day to the next, but great an annual coupon rate of 6%, “That is a malicious or ig- pressed the agency to identify 1.1%, lower than Ms. Bevac-
vive a stagnant economy. transformations are done with can be used by importers to norant position,” Mr. Kicillof companies surveyed for the qua’s prediction.
Fixing Indec’s tabulation of small steps.” settle payments for goods they said. “It isn’t a question of consumer-price index, which Businessmen also came un-
data is vital if Mr. Macri’s U- To Argentines, the steps have already brought into the competitiveness, but rather to had been kept secret to pre- der pressure. Miguel Schiariti,
turn of a broken economy is to have been anything but small: country. Importers say the convert Argentina into a coun- vent manipulation. By the end president of Argentina’s meat
work. Inflation figures, which The president has lifted cur- central bank owes them about try with a very cheap work- of that year, inflation had gone industry chamber, recalled
are closely watched here, are rency controls put in place by $9 billion because of the gov- force in dollars.” up, threatening to undermine getting into heated arguments
vital for businesses to budget, his predecessor, Cristina ernment’s tight control over At Indec, the new director, Mrs. Kirchner’s campaign to with Mr. Moreno, who wanted
for unions to plan wage nego- Kirchner, resulting in a sharp the supply of dollars. Jorge Todesca, a former dep- succeed her husband, Néstor. meat prices to stay low.
tiations and for the state to but smooth devaluation of the In January, officials will uty economy minister, said he “They needed to control the Mr. Moreno didn’t respond
determine the poverty rate. peso by allowing Argentines to start negotiations with bond- found an agency in disarray, source of information…to give to requests for comment. He
In his first two weeks as buy dollars freely for the first holders to resolve a long-run- forcing him to suspend the the sensation that the country told a local TV program re-
president, Mr. Macri removed time in four years. He opened ning dispute that has pre- publication of economic data. was in better shape,” said Ser- cently that Indec’s data was
most agricultural export taxes, talks with international banks vented Argentina from tapping The first priority has been gio Berensztein, a political an- accurate and he accused econ-
cut personal income taxes, and to obtain at least $5 billion to global financial markets. Mr. to return statisticians, and alyst. omists of self-interest in re-
announced a $500 million reinforce foreign-currency re- Macri is also aggressively other longtime civil servants In January 2007, Ms. Bevac- porting higher inflation data.
shale-oil investment. He has serves, which economists say moving to purge a state bu- who were demoted or fired, to qua, who was responsible for Today, Ms. Bevacqua is fo-
packed his cabinet with busi- have been nearly depleted be- reaucracy loaded with Kirch- their old jobs. Mr. Todesca running Indec’s consumer- cused on restoring faith in the
ness executives such as Fi- cause of currency controls. ner appointments. said employees who doctored price index, said she was pres- agency’s data collection. “I
nance Minister Alfonso Prat- Mr. Macri’s overhaul is al- Axel Kicillof, Mrs. Kirch- data would be removed. sured to manipulate data in don’t want vindication,” she
Gay, who once ran the ready being felt in tangible ner’s former finance minister, “The institute lost a large response to her forecast for said. “We found an institution
currency research unit at J.P. ways. On Monday, the Econ- said the government’s devalu- part of its human resources. inflation that month. After re- completely dismantled.... We
Morgan Chase. omy Ministry will issue $2 bil- ation is already fueling infla- For a statistics institute, this fusing, she was fired, an ac- are going to resolve this, but it
“A new era has come,” the lion in dollar-denominated tion. He denied the changes is a deadly blow,” he said. count backed by a corruption is very complicated.”
Pope Urges Aid for Thousands in Paraguay Flee Region’s Worst Floods in Years
Cuban Migrants
BY FRANCIS X. ROCCA visiting the two countries in
tandem last September.
ROME—Pope Francis voiced Cuban migrants fear im-
concern for Cuban migrants proving relations will mean
stranded in Central America the end of a special half-cen-
while trying to reach the U.S., tury-old provision in U.S. law
and he called for governments that gives them privileged
in the region to bring about a consideration for asylum and
“timely solution to this hu- permanent U.S. residency.
manitarian drama.” Pope Francis has empha-
The pope made his re- sized his concern for the
marks Sunday to a crowd in plight of migrants around the
St. Peter’s Square, after lead- world. In September, he called
ing them in reciting on every Catholic parish in Eu-
the noon Angelus prayer. rope to help alleviate the con-
“My thoughts turn in this tinent’s migration crisis by
moment to the many Cuban sheltering one family fleeing
migrants who find themselves poverty or war.
JORGE SAENZ/ASSOCIATED PRESS
in difficulty in Central Amer- The pope also said he had

ica, many of whom are victims considered entering the U.S.
of human trafficking,” the across the border from Mexico
pope said. during his visit to the States
Thousands of Cubans have in September as a “sign of
been stranded in Costa Rica brotherhood and help for the
since November, when Nicara- immigrants” headed north.
gua stopped admitting them During a visit to Mexico in
on their way north though February, the pope is sched-
Central America and Mexico to uled to visit Ciudad Juárez, ASUNCIÓN, Paraguay—With Paraguay, Uruguay, Argentina people (such as Maria Cristina farther south, authorities have
southern Texas. across the border from El further rain looming, families and Brazil. Olivera, above left, and her called for 7,000 more people to
Cuban migration to the U.S. Paso, Texas, where he is likely abandoned their homes Sunday The El Niño weather phe- daughter) have left their be evacuated because of cracks
has surged since a rapproche- to highlight migration issues. in the capital of Paraguay, the nomenon has exacerbated the homes in the capital and are in the town’s levee. But Para-
ment between Havana and As the trip will take place country hardest hit by the re- rains. The Paraguay River, camping in makeshift wood guay’s minister of national
Washington in December during the first month of U.S. gion’s worst flooding in de- which flows alongside Asun- and tin shelters around the city emergencies, Joaquín Roa, said
2014—a process in which, ac- presidential primaries, the cades. Widespread floods have ción, has already reached or finding refuge in schools many people didn’t want to
cording to both sides, Pope pope’s comments on migration already forced nearly 140,000 nearly 26 feet, its highest level and military buildings. leave for fear of looting.
Francis played a key role. The could become fodder for what people from their homes in since 1992. Around 90,000 In Alberdi, about 75 miles —Reuters
pope reinforced his support by is already a heated campaign.
Chairman of China Telecom Chinese Antiterror Law Eases

Is Held by Antigraft Body Some Demands on Tech Firms BY EVA DOU information and private data tighten the Communist Party’s
BY CHUIN-WEI YAP The detention of Mr. Chang AND JEREMY PAGE in China. control over the economy and
comes amid widening scrutiny The final version requires society and promote laws that
BEIJING—China’s antigraft of top executives at a range of BEIJING—China passed a telecom operators and Internet don’t undermine its monopoly
watchdog detained the chair- state-owned companies, from new antiterrorism law that companies to help authorities on power.
man of China Telecom Corp., oil giants to automotive manu- stepped back from previous with decryption of data and U.S. President Barack
Chang Xiaobing, in the latest facturers. China Telecom is the language that worried global other counterterrorism efforts. Obama has said he raised con-
in a spate of moves against ex- country’s third-largest mobile technology companies but that Unlike the draft version, cerns about an early draft of
ecutives at many of the coun- operator by subscriber ac- still left questions over the however, it leaves out some the counterterrorism law di-
try’s state-owned companies. counts. The wave of investiga- law’s scope and potential im- controversial language that rectly with Chinese President
Mr. Chang was detained on tions into state-owned firms is pact on companies doing busi- would have required tech com- Xi Jinping, saying technology
suspicion of “severe disciplin- part of President Xi Jinping’s ness here. panies to store their data lo- companies would be unwilling
ary violations,” according to a three-year crackdown on offi- The law, passed Sunday by cally and provide their encryp- to comply with its provisions.
one-sentence statement posted Chang Xiaobing in August 2013 cial graft in China. China’s rubber-stamp parlia- tion systems for review to be U.S. officials and business
DALE DE LA REY/AGENCE FRANCE-PRESSE/GETTY IMAGES
Sunday on the website of the Senior figures at China’s en- ment, is intended to help pre- able to operate in China. groups have also expressed
Central Commission for Disci- The commission didn’t pro- ergy sector have been snared vent terror attacks, according Still, the broad wording that concern over a sweeping na-
pline Inspection, the Commu- vide further details. A tele- in the probes. Other state- to Chinese authorities. tech companies must provide tional security law, passed in
nist Party’s top anticorruption phone message left at the dominated industries affected It contains much of the lan- “technical means of support” July, that the government says
agency. The phrase is the communications office of by the investigations include guage in a draft version that to China’s government for is needed to counter emerging
agency’s byword for corrup- China Telecom’s Hong Kong the banking and auto indus- U.S. officials, business groups counterterrorism work has threats but that critics say
tion allegations. offices wasn’t answered. The tries. and rights advocates criticized prompted concern among may be used to quash dissent
The statement said Mr. company said Sunday that its The probes have added un- as having an overly broad defi- some U.S. tech firms, accord- and exclude foreign invest-
Chang, 58 years old, was for- operations remain normal. certainty to the top offices of nition of terrorism. They also ing to a person familiar with ment.
merly the chairman of the Calls to the executive of- China’s state-run companies, said that the draft version, the matter. In May, China’s parliament
country’s second-largest mo- fices of China Unicom weren’t where executives are usually which was released a year ago, The counterterrorism law is also published a draft of a new
bile operator, China Unicom answered Sunday. Mr. Chang Communist Party functionaries would impose onerous require- part of a series of new pieces law that seeks to tighten con-
Ltd. He assumed the top post couldn’t be reached to com- that Beijing often rotates from ments on companies dealing of legislation that many ex- trols on foreign nongovern-
at China Telecom in August. ment. one state firm to the next. with proprietary commercial perts say are designed to mental groups.
A8 | Monday, December 28, 2015 THE WALL STREET JOURNAL.
WORLD NEWS
Poland Shifts to Tougher Tack With EU

Right-wing leadership them—have hit a raw nerve adapt to EU policies and adopt
among voters and politicians its democracy.”
swept into power on in Poland and elsewhere in the The European Parliament
tensions over migrants EU’s east. Many say they fear this month called on the Euro-
they shook off Russian domi- pean Commission, to assess
clashes with Brussels nation only to cede sover- whether its leadership was un-
eignty to Berlin or Brussels. dermining the rule of law and
Political tensions stoked by Accusations within the Ger- fundamental rights. A failure
the European Union’s migra- man media of undemocratic by the EU to respond “could
tion crisis have flared in Po- overreach in Poland have trigger similar developments
land, causing what has been stirred special ire. Seventy in other member states,” the
one of the most influential years after the end of World parliament said.
members in the bloc’s east to War II, Polish resentment of Some Poles took that as a
take a more confrontational Germany remains high, even veiled reference to Poland.
stance with Brussels. though many Poles acknowl- Robert Winnicki, leader of the
edge their rising prosperity is far-right National Movement
By Martin M. Sobczyk tied to their powerful neigh- urged Mr. Kaczynski to get
ALIK KEPLICZ/ASSOCIATED PRESS

in Warsaw and Margit bor to the west. more aggressive with Brussels.
Feher in Budapest “We don’t need help re- “Poland should support all ef-
garding democracy from Ger- forts that lead to a disintegra-
Polish opposition to EU many,” said Law and Justice tion of the current federal
plans to spread the burden of leader Jaroslaw Kaczynski in a model of the EU,” he said.
taking in migrants across the television interview, invoking Law and Justice’s most con-
bloc helped the right-wing na- the Nazi wartime occupation tentious move has been to re-
tionalist Law and Justice party “and all that Germans owe us.” place some judges on the con-
clinch an overwhelming vic- Law and Justice chief Jaroslaw Kaczynski, right, voted last week on changes to Poland’s top court. The rhetoric in Warsaw stitutional court, which is
tory in late October, ending echoes anti-EU fusillades from dominated by Civic Platform
eight years of rule by the cen- ecutive arm, sent a letter to pride,” he said. The bill now the EU. Civic Platform’s former Hungarian Prime Minister Vik- appointees, and to change the
trist, pro-EU Civic Platform, Warsaw asking that the court goes to the president—a Law leader Donald Tusk was cho- tor Orban, who has touted “il- rules to allow a minority to
which had earlier agreed to changes be suspended pending and Justice politician elected sen last year by his fellow EU liberal democracy” as prac- block decisions. Mr. Kaczynski
accept several thousand refu- a review of whether they un- to the mostly ceremonial post leaders for a top post in Brus- ticed in such countries as said the overhauls would pre-
gees. dermine the rule of law. in May—for his signature. sels. As prime minister, he Russia, Turkey and Singapore vent rivals from blocking his
Law and Justice has since Justice Minister Zbigniew Poland’s newly combative worked closely with German as a better model for his coun- party’s agenda, which he said
moved quickly to consolidate Ziobro, who was among the line represents a stark shift Chancellor Angela Merkel, es- try. voters had backed.
control of government offices, letter’s recipients, rejected the from the pro-EU policies of its pecially in responding to the Hungary and now Poland But Ryszard Petru, who
state-owned companies and request in the Senate, just be- previous government and bloc’s debt crisis, according to “regard the EU as a limitation leads a market-friendly oppo-
the country’s highest court, in- fore it approved the draft could complicate the bloc’s ef- people familiar with the rela- to national sovereignty,” said sition party called Modern,
cluding replacing some changes early Thursday after forts to tackle not only the mi- tionship. Peter Kreko, a political analyst said changes were being en-
judges—prompting loud pro- an all-night session. grant influx but other difficult But Ms. Merkel’s September at the independent Hungarian acted without debate. “Every-
tests from opposition politi- “I don’t think that an exter- issues, such as relations with decision to welcome hundreds research institute Political thing’s moving through parlia-
cians and criticism from nal body can impose anything Russia and fiscal discipline. of thousands of refugees—and Capital. They “like receiving ment at a very fast pace, with
abroad. Last week, the Euro- on us because that would con- In recent years, Poland has to press other EU members to EU financial support but not a risk of making enormous
pean Commission, the EU’s ex- flict with our sense of national become a regional leader in share the burden of housing the resulting obligation to mistakes,” he said.
RAMADI Kurds
Continued from Page One
Daesh,” said Brig. Gen. Ahmed
Secure
al-Bilawi, a commander of the
Anbar Emergency Police Unit,
using another name for Is-
Hold Over
lamic State. “It’s very clear
that Daesh is going down, hav-
ing lost battles in Beiji, Sinjar
Syria Dam
and now Ramadi.” BY SAM DAGHER
As Iraqi troops closed in
Saturday on the compound BEIRUT—U.S.-backed Kurd-
where the last militants were ish militias and their allies
holding out, Islamic State re- battled Sunday to consolidate
leased a rare audio recording their hold over a strategic dam
AHMAD AL-RUBAYE/AGENCE FRANCE-PRESSE/GETTY IMAGES
purportedly by Abu Bakr al- seized from the extremist

Baghdadi, the group’s reclu- group Islamic State in north-
sive leader. The 24-minute ern Syria.
message amounted to a plea The Kurdish militia known
for fortitude from his support- as the People’s Protection
ers in the face of what he de- Units, or YPG, aided by allied
scribed as recent hardships local Arab fighters in what is
and tragedies. called The Democratic Forces
A decisive victory in Sunni- of Syria, said it captured the
majority Ramadi would augur Tishrin Dam on the Euphrates
well for the coming battle to river, about 60 miles east of
retake the Sunni-majority Mo- the city of Aleppo, over the
sul, Iraq’s second-largest city weekend. Clashes continued on
and Islamic State’s main Sunday.
stronghold in Iraq. It could Video footage released by
also strengthen Iraq’s frac- Iraqi counterterrorism forces search a heavily damaged building in the center of Ramadi on Sunday, when Islamic State fighters fled. the YPG showed Kurdish fight-
tured national unity and ers on the hills overlooking the
soothe sectarian conflict in tion had supported them with Chipping Away dam.
this Shiite-dominated country
where Sunnis often complain
600 airstrikes since July.”
In the past week, the U.S.-
Strategic Gain The ouster of ISIS from Ramadi would be the latest of several
Local opposition activists
and the Syrian Observatory for
of discrimination.
“My eyes are filled with
led coalition has conducted at
least 32 airstrikes in Ramadi.
Facts on Ramadi successful attempts to wrest back territory from the group in Iraq. Human Rights, a U.K.-based
monitoring group, said Kurd-
tears now upon hearing that On Saturday, coalition war- Islamic State control or support* Recently taken from ISIS ish fighters had crossed over
security forces managed to de- planes targeted a factory Population: Around 700,000 to the west bank of the Eu-
feat Daesh in Ramadi,” said where Islamic State produces to 900,000 people inhabited TURKEY phrates, severing a crucial Is-
Dohuk
Sheikh Ghazi al-Goud, a mem- vehicle-borne improvised ex- the city of Ramadi before the IR
lamic State supply line con-
ber of parliament from Anbar plosive devices. The coalition latest conflict AQ necting the town of Manbej in
Mosul I
K
province. “This is a victory for said it had also hit sniper, ma- Raqqa Sinjar Aleppo province and the city
U
Erbil
all Iraqis. Iraqis proved chine gun and grenade launch- of Raqqa.
RD
Location: Capital of Anbar Nov. 13

IS
through the Ramadi fight that ing positions in Ramadi in the province, 60 miles west of the Deir Ezzour Both places are under Is-
TAN
Ti
they are united, Sunnis and past few days. Iraqi capital Baghdad IRAQ lamic State control and Raqqa
gr
is
Shiite.” “Our air coalition is proud Beiji is the de facto capital of its
R.
SYRIA Oct. 20
Sunday marked the first to support brave Iraqi troops Majority religion: Sunni E u p h ra self-proclaimed caliphate.
te Tikrit
time that Iraqi troops were as they defeat ISIL in Ramadi,” Muslim Neighboring Turkey, which
s
IRAN
able to penetrate the former said Brett McGurk, the U.S. en- considers the YPG a terrorist
R.
government compound in a voy to the coalition. “Support Strategic importance: The organization and an offshoot
five-day offensive to reclaim will continue until all areas city’s proximity to Baghdad Ramadi Baghdad of Kurdish separatists it has
the city center. Fewer than are liberated.” and status as provincial capital been battling for decades in
200 Islamic State fighters Jon Alterman, director of Turkey. Turkey had previously
were believed to be left there the Center for International Symbolic importance: warned it would retaliate
50 miles
before they fled. and Strategic Studies’s Middle Retaking Ramadi is a boost for against any crossing of the Eu-
By late in the day, Islamic East program, said the gains Iraq’s battered military ahead 50 km phrates by the Syrian Kurds,
State militants were fleeing to in Ramadi show that U.S. and of efforts to drive Islamic *As of Dec. 21 Source: Institute for the Study of War THE WALL STREET JOURNAL
who already control most of
Ramadi’s eastern suburbs Iraqi forces are improving co- State from its base in Mosul Syria’s northern border with
along with their families and ordination. Turkey.
civilian hostages they had “The U.S. brings things to And retaking Ramadi their targets, Col. Warren said. Having surprised Islamic The Turks have been under
been using as human shields, a this fight in terms of intelli- doesn’t guarantee a broader The training focused on ap- State fighters once, Iraqi pressure from Washington and
security official said. gence, in terms of tactics, in victory over Islamic State. plying air and land attacks in troops did it again. its European allies to do more
But progress remained slow terms of integrating what hap- “In principle, it’s fairly hard concert—and it paid off on the Instead of pushing north to fight Islamic State. Turkish
as Iraqi troops picked their pens on the ground and what for ISIL to feel good about its battlefield. straight into the government officials on Sunday said they
way through cratered city happens in the air, and the position. It’s not as if it can “What really distinguished center as the insurgents ex- were closely monitoring devel-
streets and booby-trapped Iraqis are learning to operate hold these cities against the the Ramadi fight was the high- pected, they outflanked them opments on the ground in
buildings left behind by more in that environment,” Mr. Iraqi army with American air level coordination among all by heading west, occupying a northern Syria, suggesting
than a month of almost con- Alterman said. power and other coalition air forces on the fight—I mean the nearby neighborhood called possible prior coordination
tinuous fighting, military offi- While earlier this year, U.S. power,” Mr. O’Hanlon said. air force, artillery and coalition al-Houz, said Col. Ibrahim. with the U.S.
cials said. officials said they hoped Iraqi “But the sheer quantitative forces,” said Col. Mohamed The evasive maneuver al- The U.S. military said Sun-
The Iraqi military credited forces would mount an offen- requirement for the remaining Ibrahim, a spokesman for the lowed Iraqi troops to isolate day that it conducted several
its success in Ramadi to a sive to take back Mosul in the task is roughly five times of federal police and a member of hundreds of Islamic State airstrikes against Islamic State
fresh round of American train- spring, those plans were side- what’s just been done, and it Iraq’s joint operations com- holdouts in the government targets near Manbej and
ing and new weapons supplies. lined once the militant group took a year to rebuild the Iraqi mand, which coordinates with district. Raqqa, where the Kurds and
Over the past year, American- made gains in Anbar province army to the point where they the U.S.-led coalition. For Iraqi troops, Islamic their allies have been pressing
led coalition forces have and Ramadi fell in May. could do just Ramadi plus a The benefit of the training State’s reliance on booby traps ahead with their latest offen-
trained some 15,000 Iraqi The relatively slow pace of couple of smaller places.” was most obvious on the first and land mines smacked of sive against Islamic State.
troops with a focus on basic progress for the Iraqi forces Still the troops on the day of battle Tuesday, when cowardice. Elsewhere in Syria, rebel
military skills and coordinat- this year calls into question ground in Ramadi are display- Iraqi army engineers laid pon- “Daesh was not fighting us groups supported by Turkey,
ing air, artillery and ground whether they can retake Mosul ing a newfound confidence, toon bridges across the Eu- like real men, Daesh was only Qatar and Saudi Arabia came
forces, said Col. Steve Warren, next year, said Michael O’Han- bolstered by an order last phrates River—imitating a ma- leaving IEDs and booby traps,” under increased pressure from
the Pentagon spokesman. lon, a senior fellow at the summer for some 2,000 AT-4, neuver they had been taught said Brig. Gen. Bilawi. regime forces backed by Iran
“The coalition congratu- Brookings Institution. shoulder-fired, antitank rock- only weeks before. “This gave us unbelievable and Russia.
lates the Iraqi security forces “I think it will happen,” he ets from the U.S. “The enemy never thought confidence in our capabilities Russian warplanes pounded
for their continued success said. “In practice it could take The combination of new we would do it this way,” Col. and helped a lot in winning rebel positions on Sunday
against ISIL in Ramadi,” said the better part of 2016 or the training and equipment pre- Ibrahim said. the fight in Ramadi.” around Damascus and in the
Col. Warren, using an acronym whole part to be able to have vented about 90% of truck “The enemy couldn’t con- —Felicia Schwartz and Ben southern province of Daraa,
for Islamic State. the capacity for the Iraqi army bombs, a crucial Islamic State tain their surprise and fell in Kesling contributed to this according to opposition activ-
He said the U.S.-led coali- to do it.” weapon, from ever reaching complete confusion.” article. ists and Syrian state media.
WORLD NEWS
World
Watch InJapan,EthicsLessonsSpurDebate
Plan for new curriculum is part of conservatives’ push to restore principles they say were lost after WWII
BY MITSURU OBE In one rural mountain-
Words to Live By ringed elementary school in
ISRAEL TOKYO—Japan is prepar- Emperor Meiji, below, issued the Imperial Rescript on Education in 1890 to address a perceived loss of Ome City, a recent ethics
ing to reintroduce the teach- class concerned “how to bet-
Nonprofits Pressed to ing of traditional Japanese
traditional virtues in Japan due to the country's Westernization; his precepts are a basis for new
ter understand each other.”
education guidelines.
Declare Foreign Funds ethics in schools, as the na- Mika Hakamada, the teacher,
An Israeli ministerial commit- tion’s conservatives seek to asked a class of sixth-grad-
tee passed legislation that restore the values they say
1 Be filial to your parents
ers to imagine a group of
would require local nonprofits to were rooted out during the 2 Be affectionate to your brothers and sisters students angrily yelling at
disclose whether they are U.S. occupation after World 3 Be harmonious as husbands and wives them from across a river.
funded primarily by foreign War II. “How would you respond?
countries, drawing criticism from The education initiative is 4 Trust and be trusted by your friends Yell back? Ignore? Or ask
left-wing peace activists. part of an effort by Prime 5 Bear yourself in modesty and moderation them what they are saying?”
The bill, promoted by the Minister Shinzo Abe and his she asked. A discussion fol-
right-wing Jewish Home party allies to push policies meant
6 Extend your benevolence to all
lowed, as she urged the stu-
and Justice Minister Ayelet to cast Japan as a stronger, 7 Devote yourself to learning and gain an occupation dents, “Don’t try to give
Shaked, received the expected prouder and forward-looking 8 Acquire knowledge and develop your talent pleasing answers. Be hon-
approval of the Israeli parlia- country, one less apologetic est.”
ment’s Ministerial Committee for for its history. That new as- 9 Improve your character Opinion polls indicate a
Legislation. That clears it for de- sertiveness has sometimes 10 Work to promote public good solid majority of Japanese
bate and voting in parliament. provoked Japan’s neighbors support the idea of general
11 Respect the constitution and observe the law
The bill would require non- and riled Japanese who say ethics education, with re-
profits that get more than half the popular leader is rolling 12 Should emergency arise, offer yourselves courageously spondents citing youth vio-
of their funding from foreign back the liberal values that to the state lence and the need for stu-
countries to disclose that fact. have kept Japan free, safe dents to develop more
Opponents see the bill as an at- and prosperous. Photo: Newscom THE WALL STREET JOURNAL. empathy for others as rea-
tempt by the political right to si- The dispute has flared sons. The polls didn’t ad-
lence left-wing critics who prefer over official visits to a con- The 1890 Imperial Re- dress patriotism or respect
to pursue peace with the Pales- troversial shrine honoring script on Education and pre- Black Marks for authority.
tinians. Many nonprofits that ad- the nation’s war dead, in- war ethics education are the Conservatives want to address violence and truancy in the education Driving Mr. Abe’s efforts
vocate peace receive funding cluding convicted class-A bases for the new guidelines, system with a new ethics curriculum. to cast Japan in a more posi-
from foreign countries. war criminals, and the gov- which publishers are now in- tive light are the running
—Asa Fitch ernment’s reinterpretation of corporating into textbooks. Number of violent acts by Middle-school students who disputes over wartime his-
the constitution to give the The books will be used in students in elementary missed 30 or more days of tory with neighboring China
SPAIN military more freedom to new ethics classes to be school* school a year** and South Korea, which has
fight and operate overseas. taught in elementary and 12,000 120,000 led to “soul-searching over
Secessionist Leader’s On the education front, middle school starting in the national identity,” said
Fate Left Unresolved conservatives and liberals 2018 after a period of public 10,000 100,000 Shiro Takahashi, an educa-
A small, far-left Catalan party have rumbled over revisions comment and government tion professor at Meisei Uni-
8,000 80,000
wound up deadlocked in an in- to history textbooks and approval. versity and an influential
ternal vote Sunday over whether mandatory singing of the na- Mr. Abe’s initiative is wel- 6,000 60,000 voice among conservatives.
to give secessionist leader Artur tional anthem in schools. comed by many Japanese Atsuko Tsuruta, a retired
Mas the margin of support he The new teaching initia- who see a link between the 4,000 40,000 professor of education at the
needs to be re-elected as the tive stems from the conser- Western emphasis on per- University of the Sacred
Catalonia region’s president. vative view that Japanese sonal freedom and a moral 2,000 20,000 Heart in Tokyo, views the
The Popular Unity Candidacy, people—especially youth— decay they say is afflicting shift as a step backward. She
or CUP, was thrust into the role hold their country and its the country’s youth, as seen 0 0 recalls, with little affection,
of kingmaker after September’s history in low regard due to in rising cases of bullying, FY1997 2000 2010 FY1991 2000 2010 when Japanese schools em-
regional election. The main se- too much focus in schools on juvenile delinquency and *Private-school students not included before 2006. Violent acts include vandalism and physical
phasized respect for author-
cessionist ticket ended up need- Japan’s wartime aggressions. classroom disorder. violence against other people **Mental-health problems are the most commonly cited causes ity and rules, with large
ing the backing of at least some To counter that, Mr. Abe’s “Teachers and students of absenteeism, followed by bullying, trouble with friends and family problems. signs in schools that stated,
of the CUP’s 10 legislators to re- government this year set ed- have become equals, result- Note: Fiscal years begin April 1 and end March 31. “Obedience.”
elect Mr. Mas. ucation guidelines that ening in loss of authority in Source: Ministry of education THE WALL STREET JOURNAL. Ms. Tsuruta rejected the
CUP leaders said they would courage patriotism and es- the classroom,” said Shigeki notion that classrooms have
attempt to resolve the impasse pouse love of Japan’s Kaizuka, professor at also stoking fears. The Japan said. The union contends become too chaotic. “That’s
at a political council on Jan. 2. history, traditions and cul- Musashino University and a Teachers’ Union opposes the that rather than focusing on what democracy means. De-
The Catalan parliament has until ture, including the ancient leading advocate of ethics new curriculum, saying that teaching people to love the mocracy is a messy thing,”
Jan. 9 to install a leader; other- Shinto religion, as well as education. “The classroom evaluating students on tradi- country, the government she said. “It is arrogant for
wise, Mr. Mas would by law the importance of obeying has been reduced to a jungle, tional ethics is akin to forc- should concentrate its ef- adults to think children
need to call new regional elec- rules, being kind and exert- creating room for bullying.” ing values on students, a forts on making Japan de- should be spared from deal-
tions. —Matt Moffett ing self-control. But the new curriculum is spokesman, Hiroaki Akaike, serving of that love, he said. ing with confusion.”
Photo credit: F. Martin Ramin, The Wall Street Journal, Styling by Anne Cardenas
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A10 | Monday, December 28, 2015 * *** THE WALL STREET JOURNAL.
FROM PAGE ONE
HOLMES which has invested in medical

technology companies for 29
years. Ms. Holmes sat down at
the firm’s office across from
Continued from Page One five MedVenture partners.
Novartis AG executives at the Speaking fast, the young en-
meeting the next day, testing trepreneur pitched them about
for a protein that measures in- putting blood tests on a chip,
flammation, says the person recalls Annette Campbell-
familiar with the incident. White, MedVenture’s managing
All three of her Theranos partner. She says Ms. Holmes
devices flickered with error talked “from 30,000 feet about
messages, the person says. Ms. how these tests are going to
Holmes was unfazed, blamed a change mankind” but provided
minor technical glitch and con- no technical or scientific de-
tinued to pitch the vast poten- tails.
tial of her technology. When asked for more spe-
Ms. Holmes and several cur- cifics, such as how the technol-
rent or former Theranos direc- ogy would differ from a porta-
tors declined interview re- ble blood-diagnostics device
quests. A spokeswoman for made by a company called
Theranos, Brooke Buchanan, Abaxis Inc., Ms. Holmes got
says Ms. Holmes recalls only annoyed, according to the ven-
one machine with an error ture capitalist.
message, because someone “The more we tried to drill
tripped over the cord. A sec- down, the more uncomfortable
ond machine ran perfectly, and she got,” Ms. Campbell-White
the third wasn’t used, the says. After about an hour, Ms.
spokeswoman says. A Novartis Holmes stood up and left,
spokeswoman wouldn’t com- “leaving us to look at one an-
ment. other in amazement,” Ms.
Since a Wall Street Journal Campbell-White says.
article in October, Ms. Holmes Theranos’s Ms. Buchanan
has defended the Palo Alto, Ca- says Ms. Holmes remembers
lif., company’s laboratory work the meeting very differently
and promised to publish data and would never leave a meet-
proving the accuracy of its ing so abruptly.
more than 240 tests, ranging The spokeswoman says Ms.
from pregnancy to diabetes. Campbell-White’s memory
She said earlier this month might be biased by MedVen-
that customer volume was ture’s investment in Abaxis.
higher than ever. The company Ms. Campbell-White says Med-
has said it performed millions Venture exited the investment
of tests, with highly positive years before the meeting.
feedback. By the end of 2004, Ms.
For now, though, Theranos Holmes had raised at least $6.9
NIKKI RITCHER FOR THE WALL STREET JOURNAL

has stopped collecting tiny million, valuing Theranos at
samples of blood from pa- about $30 million, according to
tients’ fingers for all but one of corporate filings.
its tests while it waits for the The first $1 million came
Food and Drug Administration from Tim Draper, a founder of
to review the company’s appli- Draper Fisher Jurvetson,
cations for wider use of the through two of his funds. Ms.
small proprietary vials called Holmes was a childhood friend
“nanotainers.” As a result, of his daughter and came to
Theranos is using traditional him “with extraordinary en-
lab machines for most of its ergy and brilliance,” he says.
tests. The money enabled Ms.
Many technology startups Holmes to hire scientists and
struggle to overcome problems engineers. She believed the
while developing their prod- fastest route to getting reve- ‘Things change in any company…You improve with time, you test
ucts. Theranos has always nue was by offering Theranos’s
faced an extra burden because blood tests to drug companies things, you do things differently.’
blood tests sometimes provide for use in clinical trials, former
life-or-death answers. Theranos employees say.
David Philippides, an engi- In April 2005, Ms. Holmes Theranos spokeswoman Brooke Buchanan about the strategy of ELIZABETH HOLMES, shown at the WSJDLive conference in October.
neer who worked on Theranos said on the public-radio pro-
devices from January 2013 to gram “BioTech Nation” that
November 2014, says the com- she had created a hand-held interested in the concept. through three trial runs with a side counsel and a company di-
pany didn’t show enough re- device that would help drug Oscar Laskin, then vice Giant Jump quality-control sample contain- rector since October, told the
gard, based on his involvement companies tell in real time how president of early drug devel- Investors last year increased ing a known amount of the Journal in a letter in July that
in research while he was there, well their drugs worked on pa- opment at Celgene Corp., re- Theranos's valuation to about substance the test was sup- the company “never hid the ex-
for the scientific rigor of medi- tients using “a little tiny nee- calls being told by Ms. Holmes $9 billion. posed to measure. istence of any laboratory.” In-
cal research. dle that pulls a little tiny drop in 2008 that Theranos could February 2014: The lab employee later told spectors were told about both
“The time was not taken to of blood” from an arm or the tell how certain markers in the $9 billion federal authorities that the re- sections but chose to visit only
develop anything properly,” hand. blood were changing and then $8 billion sults from the quality-control “the room that processed over
Mr. Philippides says. “This is Ms. Holmes called it the input the results into a com- runs diverged from the known 90 percent of the samples at
science. You need time.” He RDX Metabolic Profiler and puter model that would be- amount by more than two the time.”
says he was fired after refusing said it was “going into the pro- come more predictive over 6 standard deviations, a red flag Theranos passed. The
to go to Arizona to retrieve a duction phase,” according to a time. that suggested possible accu- agency won’t comment beyond
broken machine. recording of the interview. “We He says she told him the racy problems, according to a the inspection report.
4
The Theranos spokeswoman hope to release it, actually, to a technology could help Celgene complaint filed by the em-
says he held only a “junior pharmaceutical partner around make important adjustments ployee.
role” that gave him “no visibil- mid to late this year.” during drug trials. When Mr. When the Theranos em- Valued at $9 billion
2 December 2004:
ity into the extent of” the com- Two people who worked at Laskin asked for an explana- ployee alerted superiors, some- Last year, investors pumped
pany’s research and develop- Theranos at the time say it tion of how it worked, Ms. $30 million one from research and devel- another $633 million into
ment. She says the company was still years away from de- Holmes said she couldn’t re- opment came to the lab and Theranos, increasing its valua-
0
employs more than 80 scien- veloping such a device. They veal trade secrets. deleted quality-control data to tion to about $9 billion and
tists with doctorates. say the company was still try- “The level of sophistication ’03 ’05 ’07 ’09 ’11 ’13 ’15 make the Edison’s test runs Ms. Holmes’s majority stake to
ing to figure out the chemistry required by what she was de- Source: Company filings look better, the former lab em- more than half that.
of various blood tests. scribing involved a paradigm THE WALL STREET JOURNAL. ployee alleged in the complaint In April 2014, she got a long
‘I’m in a Hurry’ Ms. Buchanan says the tone shift,” he says. “It sounded like to the Centers for Medicare email from another employee.
When she was a high-school of the interview was “aspira- something that was too good comment. and Medicaid Services, or The employee alleged that
junior at St. John’s School in tional” rather than “literal.” to be true.” Ms. Buchanan says In 2010, another fundraising CMS. Theranos had cherry-picked
Houston, Ms. Holmes offered a She says Ms. Holmes actually Theranos disagrees with Mr. round boosted Theranos’s valu- The R&D employee then data when comparing Edison
glimpse of herself in the year- described two devices, one of Laskin’s recollection but de- ation above $1 billion. By then, tested the patient’s blood on machines to traditional lab ma-
book. “I tend to be a perfec- which went into manufacturing clines to comment further. the device was code-named the Edison and sent the results chines to make the Edison look
tionist so sometimes I’m up re- within a year. Theranos did Nevertheless, Celgene Edison, after the famous inven- to the patient, according to a more accurate, according to a
ally late working,” she was eventually enter into partner- signed a $3 million contract tor. copy of the complaint. An copy of the email.
quoted as saying. “But usually ships with drugmakers such as with Theranos for a custom- Safeway Inc. and Walgreens agency spokeswoman declines For one test, the device’s ac-
I can stay on top of things and Pfizer Inc., she says. made blood test and use of the agreed to offer Theranos tests to comment. CMS auditors in- curacy rate increased sharply
everything works out.” A Pfizer spokesman says it company’s computer model, in stores. Mr. Nugent says he spected Theranos last month after some information was
A senior-year student sur- has done “only very limited two former Theranos employ- was surprised by the Septem- as part of a regularly sched- deleted and manipulated, the
vey said her theme song was historical exploratory work ees say. It isn’t clear if Thera- ber 2013 announcement to uled audit the company says is employee wrote. Edison ma-
“I’m in a Hurry” and she would with Theranos through a few nos ever created the test. Ms. “bring access to” Theranos’s continuing. chines also allegedly failed
be “trying to save the world” pilot projects” and doesn’t Buchanan says Theranos “lab testing service through Ms. Buchanan says Thera- daily quality-control checks of-
in 20 years. have any current or active doesn’t comment on confiden- Walgreens pharmacies nation- nos doesn’t believe the inci- ten.
The daughter of a well-con- projects with it. tial business relationships. Cel- wide” because he still consid- dent happened. “If there ever “I am sorry if this email
nected public servant and for- In the interview, Ms. Holmes gene declines to comment. ered the Edison an experimen- were a circumstance like that, sounds attacking in any way, I
mer congressional aide, Ms. also showed less interest in In 2009, Ms. Holmes re- tal device. we would do a quality-control do not intend it to be,” the em-
Holmes took chemical engi- finger-pricked blood than turned to Stanford to give a He recalls seeing the ma- check on that device and not ployee told Ms. Holmes. “I just
neering classes at Stanford but Theranos does now. “If you talk about entrepreneurship. give out a patient result,” she feel a responsibility to you to
had no medical training when poke yourself in the arm or on She described Theranos’s ac- says. tell you what I see so we can
she quit to start Theranos in the palm of your hand, it complishments and said its
Holmes started CMS auditors did another work towards solutions.”
2003. She began approaching doesn’t hurt as much as if you testing system made it possi- making her pitch to scheduled inspection shortly Ms. Holmes forwarded the
venture-capital firms to gauge do it on the fingertip, because ble to poke the finger of a pa- after the alleged incident two email to Mr. Balwani. He re-
their interest. there’s many nerves in your tient who had taken a drug
investors soon after years ago. Upstairs were the plied to the employee, who no
She got a meeting in 2004 fingertip,” she said. “and see whether it works, starting Theranos. traditional lab instruments longer works at Theranos, de-
with MedVenture Associates, Since then, says Ms. Bu- whether it’s safe and whether bought from outside companied all the claims and ques-
chanan, the company has in- they have the right dose,” ac- nies and used to test most pa- tioned the employee’s under-
vented techniques that make it cording to a recording of her chines labeled “for investiga- tient samples. That part of the standing of statistics and lab
Popular Investment less painful to extract blood talk. tional use only.” Their accuracy lab was called Jurassic Park science.
Theranos has raised at least from a finger. The same year, Theranos “was not to the level you’d because Ms. Holmes and Mr. Quality-control failures were
$750 million from investors. “Things change in any com- hired Sunny Balwani as presi- want.” Balwani said Theranos’s tech- due to the “newness of some of
pany,” she adds. “You improve dent and chief operating offi- Ms. Buchanan responds: nology would soon make those our processes, which we are
$600 million
with time, you learn, you test cer. He had started and sold an “We are 100% confident of the machines obsolete, former em- improving every day,” Mr. Bal-
things, you do things differ- e-commerce company during accuracy of our tests when we ployees say. wani wrote.
ently.” the dot-com boom. rolled them out.” She says Mr. Edison machines were kept He added: “This is product
By 2007, Theranos was val- Anthony Nugent, an engi- Nugent seems to be confusing downstairs in the Normandy development, this is how start-
400 ued at an estimated $197 mil- neer listed as co-inventor with devices designed “for a non- section of the lab, a reference ups are built.” The reply ended
lion after raising another $43.2 Ms. Holmes on five patents, clinical purpose…with those to the D-Day invasion by Allied with an edict that the “only
million. The company had de- says the hiring seemed odd be- that are ultimately used in the forces that evoked compari- email on this topic I want to
veloped a device to test small cause Mr. Balwani lacked expe- clinical lab.” sons to how Theranos was tak- see from you going forward is
quantities of blood, but it was rience in blood diagnostics and In November 2013, Thera- ing the lab industry by storm. an apology that I’ll pass on to
200
the size of a personal com- didn’t have a science or medi- nos’s lab in California got an Two former employees say other people.”
puter tower and weighed 70 cine background. Mr. Nugent order from a patient at a Wal- managers told lab staff not to Ms. Buchanan says the em-
pounds, says a person who worked at Theranos from 2007 greens for a blood test handled enter or exit Normandy during ployee was too inexperienced
worked at Theranos. A later to 2013. by the Edison, according to a the audit. The inspectors to “make these types of com-
0 version weighed 23 pounds, Ms. Buchanan, the com- former Theranos lab toured Jurassic Park but never ments” and “struggled” to
Dec. Feb. Oct. June Feb. the former employee recalls. pany’s spokeswoman, responds worker assigned to run the went downstairs or saw the grasp Theranos’s scientific pro-
2004 ’06 ’06 ’10 ’14 After the demonstration at that Mr. Balwani has an “exten- test. Edison machines, the former cesses. The company has dis-
Source: Company filings Novartis, Ms. Holmes kept try- sive and successful background Before doing the test, the employees say. closed its test methods to reg-
THE WALL STREET JOURNAL. ing to get other drugmakers in technology.” He declines to employee put the device David Boies, Theranos’s out- ulators, she adds.
OPINION
The Obamanet Overreach BOOKSHELF | By Edward Kosner
For the
first 20
years of
century ago for railroads and
the telephone monopoly.
The three-judge appeals
now known as Obamanet.
This pressure included a
video by President Obama and
“effectively severs the tie be-
tween federal law and admin-
istrative policy, thus under-
Myths That
the Inter-
net, en-
trepre-
panel included David Tatel, a
Clinton appointee whose legal
opinions blocked the FCC’s
organized demonstrations out-
side the home of Tom
Wheeler, the FCC chairman.
mining important democratic
and constitutional values.”
Judges are hard to predict,
Changed America
INFORMATION n e u r s earlier Internet regulations. Mr. Wheeler sent an email to so there is no guarantee that
AGE were free
to focus
During the oral argument, he
demanded to know why the
his staff, later obtained by a
congressional committee, ex-
the appeals court, when it
rules, will have the courage of
Alex Haley
By L. Gordon
on their agency in February suddenly pressing shock over strong- Judge Tatel’s conviction that By Robert J. Norrell
Crovitz
c o m - opted to regulate the Internet arming by the White House. A agencies must operate inde- (St. Martin’s, 251 pages, $26.99)
A
p u t e r as a utility instead of pursuing page-one article in The Wall pendently. But by overturning
code that changed everyone’s the lighter regulatory approach Street Journal detailed how the Obamanet regulations, lex Haley was once a commanding figure in American
life. Now regulators are forc- the agency had called its “blue- administration staffers dic- judges would protect both the popular culture, but his name is now in eclipse. He
ing technologists to cope with print.” tated policy to the agency. law and the Internet. sold six million copies each of “The Autobiography of
a different kind of code—the Judge Tatel tried asking the This month the FCC sent Malcolm X” and “Roots,” his epic of slavery and black sur-
legal system. Unlike the disci- FCC’s lawyer this key question letters to T-Mobile, AT&T and vival in America. Eighty million people watched individual
plined operation of digital three times: Judges weigh a make- Comcast demanding that they episodes of the 1977 TV miniseries of the book he called “a
software, the legal code de- “The commission even called or-break case against appear before agency staff by saga.” But his career ended in charges that “Roots” was
pends on human willingness to it the ‘blueprint’ offered by the Jan. 15 to justify new pricing both fraudulent and plagiarized—a neat trick—and his repu-
obey its rules. D.C. Circuit. That’s the commis- heavy Web regulation. plans. These offer cost-con- tation never recovered.
This month the federal ap- sion’s word, not mine. And so scious consumers data pro- More than two decades after his death at 70 in 1992, Ha-
peals court in Washington what, how do you describe the grams with unlimited, so-called ley is the subject of a sympathetic and mostly clear-eyed bi-
heard make-or-break argu- commission’s reasons for aban- This political interference is “zero rating,” access to selected ography by Robert J. Norrell, a professor at the University
ments against new regulations doning that approach. What’s clear abuse by the executive services such as video and of Tennessee. The book doesn’t dispel the cloud hanging
micromanaging the Internet. the policy explanation for that branch. The independent regu- music. Net neutrality absolut- over Haley, but it does por-
The rules issued earlier this decision?” latory agencies created during ists oppose these plans even tray him as an earnest,
year for the first time gave When Judge Tatel got no the New Deal have a precarious though the offerings create striving writer who over-
bureaucrats power to block answer, he tried again: “What constitutionality even without more consumer choice. paid his dues as an African-
new Internet products, ser- changed [the commission’s] a president dictating orders. Only last month, Mr. American freelancer desper-
vices, pricing and technologies. mind? It couldn’t have been The Constitution says only Wheeler praised as “innova- ate to break into the big
These regulations violate changed circumstances, right? Congress can make laws. The tive” the T-Mobile pricing plan time. In the darkest days, he
the bipartisan congressional The circumstances are all separation-of-powers justifica- his agency now challenges. He papered a wall of his base-
consensus retained since the essentially the same. What is tion for “independent” agen- even chided critics for predict- ment flat with rejection let-
Clinton administration to keep the crispest answer?” cies’ issuing rules assumes that ing that innovators would have ters, the most encouraging a
the Internet free of regulation. After another evasive an- apolitical experts run agencies to plead, “Mother, may I?” with postcard from an editor that
Ever since the Telecommunica- swer, Judge Tatel said, “It without pressure from the the FCC. The agency now de- said: “Nice try.”
tions Act of 1996, congressional couldn’t have been changed White House, and that they mands that companies beg for He ultimately triumphed, but
policy has been to “preserve facts. Right? It had to be a dif- craft careful factual records be- regulatory approval. Republican the final judgment on Haley de-
the vibrant and competitive ferent perception of what was fore regulating. With Obama- FCC commissioner Ajit Pai said pends on how generous one
free market” for the Internet happening. What was that?” net, the FCC failed these tests. the agency should not “haul in wants to be. The charitable view
“unfettered by federal or state And finally: “What drove the Judge Tatel himself warned companies left and right,” is that he was a flawed artist—an
regulation.” commission?” against politicized agencies in warning that “the era of per- industrious but scattered writer; a tax
Federal judges are now de- Everyone in the courtroom a speech on administrative law missionless innovation is over.” debtor and failed husband; a perpetual toothache for book
ciding what to do about the knew why the FCC’s lawyer published in 2009 in the The appeals court will rule editors and publishers—who somehow produced two of the
Obama administration’s scheme wouldn’t answer with the Harvard Environmental Law on the case in early 2016. most acclaimed and top-selling books of the second half of
to get around Congress by truth: What “drove” the Review. “It looks for all the Invalidating Obamanet would the 20th century. The contrary view is that he was a charla-
pressuring the supposedly in- agency was the politically world like agencies choose uphold the understanding tan who invented much of the text of “Roots.” The incisive
dependent Federal Communi- motivated demand by the their policy first and then later shared by Silicon Valley and black critic Stanley Crouch damned Haley as “a ruthless
cations Commission to fetter Obama White House that the seem to defend its legality,” he Congress that innovation, not hustler” and his book as “a hoax.” The press scourge Philip
the Internet through regula- agency submit the Internet to wrote. That “entirely back- regulation, drives the success Nobile called him a “literary rogue.”
tions designed more than a the heavy-handed regulations wards” approach, he added, of the Internet. Alex Haley was an unlikely rogue, much less a best-sell-
ing writer. As Mr. Norrell notes, Haley’s own roots were
atypical for Southern blacks in the early decades of the
What Trump Doesn’t Know About Mexicans 20th century: His father, Simon Haley, and his mother, born
Bertha Palmer, were both college graduates, and his father
had a graduate degree in agriculture from Cornell. His
D o n a l d 1990 and more than doubled to number of illegal Mexicans in return home are likely more grandfather, Will Palmer, was a prosperous lumber mer-
Trump’s rants 9.4 million in 2000.” By that the U.S. shot up to 6.9 million complex. As Mr. Alba writes, chant in Henning, Tenn., where Alex was raised. There was
against Mexi- time they constituted almost in 2007 from 4.5 million in “Mexico’s improving economic miscegenation on both sides of the family. Alex’s paternal
can migrants 30% of this country’s immi- 2000. Then the Great Reces- stability, modest growth (in great-grandfather was a Confederate colonel named James
have helped grant population. The Pew Re- sion hit, the job market tanked, per capita terms), and ongo- Jackson. Family lore had it that his maternal great-great-
rocket him to search Center’s Ana González- the labor flow ebbed and some ing social improvements” grandmother, Kizzy, had been raped by her slave master.
AMERICAS the top of na- Barrera estimated that seven one million Mexican migrants have also had an effect.
tional polls in years later the Mexican-born returned home between 2009 Border enforcement is a less
By Mary Haley produced two of the top-selling books
the race for population (legal and illegal) in and 2014—more than the num- convincing reason for the net
Anastasia
the Republican the U.S. was 12.8 million. ber of Mexicans coming here. outflow of Mexicans, since the of the second half of the 20th century.
O’Grady
presidential It wasn’t only Mexicans who immigration of Central Ameri-
nomination. came in big numbers to the cans to the U.S. remains Was he a flawed artist or a ruthless hustler?
What an inconvenient fact it U.S. in those years—by 2013 For years, more have robust. Cato Institute immigra-
must be that Mexicans are now immigrants made up more been leaving the tion policy analyst Alex Now-
leaving the U.S. in greater num- than 13% of the U.S. popula- rasteh believes that the liberal- An indifferent high-school student, Haley joined the
bers than they are arriving. tion, according to a recent Pew U.S. than arriving. ization of Mexico’s migration Coast Guard in 1939 as a mess attendant—the only rank
Significant Mexican migra- Research Center report, up policy—at the behest of Repub- available to black enlistees—and wound up two decades
tion to the U.S. dates back at from 5.4% in 1960. But Mexi- licans who complained that later as its first chief journalist, promoting the service with
least to a Bracero program, cans, the largest group, had The result, says Ms. Mexico dealt harshly with its articles and dealing with the press on rescues and other
launched in 1942, to match the become a lightning rod for a González-Barrera, is that “the own migrants while demanding Coast Guard actions. He left the service to become a maga-
supply of Mexican agricultural nativist backlash as the U.S. net flow from Mexico to the generosity from the U.S.—has zine writer, eventually conducting long interviews for Play-
labor to U.S. demand during economy sputtered. U.S. is now negative, as return made it easier for Central boy. One of his subjects was the charismatic black national-
harvest time. The arrangement One common charge is that migration of Mexican nation- Americans to pass through ist Malcolm X, who enlisted Haley to write his
made it legal for Mexican migrants come to the U.S. to als and their children is now Mexico and get to the U.S. autobiography as he was breaking away from Elijah Muham-
workers to cross the border to sponge off the welfare state. higher than migration of Mex- border. mad’s Nation of Islam. The book took years to finish. Fore-
work and return home at the But the data are clear that icans heading to the U.S.” She Mr. Trump may need a new shadowing the furor over “Roots,” the “Autobiography,”
end of the season. work drives Mexican migra- estimates that there were bête noire. The Census Bureau which finally appeared in September 1965, included a num-
The U.S. terminated the pro- tion. Beginning in the late 140,000 fewer Mexicans living reported in 2013 that immi- ber of dubious details and outright fictions about Malcolm
gram in 1964 under pressure 1970s, an excess of labor in in the U.S. in 2014 compared gration from China and India and soft-pedaled his anti-Semitism and dealings with neo-
from organized labor. But Con- Mexico due to recurring mone- with 2009. was higher than from Mexico. Nazis and the Ku Klux Klan. The “Autobiography,” Mr. Norell
gress could not repeal the laws tary and economic crises, and a According to a national “The new prominence of Asian observes gingerly at one point, must be “understood as the
of economics. Opportunities for high birthrate, met a strong household survey by the Mexi- migration,” Muzaffar Chishti creation of its subject’s life, not a factual recounting of it.”
work and higher wages in the demand for labor in the U.S. can government in 2014, 25% and Faye Hipsman of the The book became a huge best seller, propelled by Mal-
U.S. continued to be a draw, The U.S. construction and of those who came since 2009 Migration Policy Institute colm X’s assassination by Black Muslims earlier in the year.
and Mexicans continued to mi- home-building boom in the and left by 2014 said that they wrote in May, “may herald a This gave Haley standing to pursue a project he had been
grate north. But as the risks of 1990s and early 2000s is a had not been able to find work significant and long-term tran- mulling for years—reconstructing the story of his family
crossing the border increased, notable phase. Without formal in the U.S. A greater number sition in the demographics of traced back to an ancestor known as “The African,” who had
they tended to stay longer. market mechanisms allowing (40%) said the main reason future U.S. immigration.” been brought in chains to America in the 18th century. Ha-
In a paper for the Migration bidders and suppliers to engage was to reunite with family. Mexicans are still the larg- ley had heard the tale as a boy sitting on the front porch
Policy Institute, economist in legal transactions, under- Among all Mexicans who re- est immigrant group. But if with his Palmer aunts in Henning. He determined not simply
Francisco Alba found that the ground networks matched em- turned during that period, 61% the trend continues, Mr. to flesh out the story as a folkloric novel but to report it as
number of Mexican immigrants ployers to employees. said it was either to reunite Trump won’t have so many of Truman Capote claimed to have done in “In Cold Blood.”
in the U.S. “doubled from 2.2 Pew’s Ana González-Barrera with family or start a family. them to kick around anymore. From snatches of West African language his aunts had
million in 1980 to 4.5 million in recently estimated that the Yet the reasons Mexicans Write to O’Grady@wsj.com. used, Haley persuaded himself that “The African” had been
named Kunta Kinte and that he had been seized by British
slavers from his edenic village on the Gambia River. Book
‘God Does Not Play Dice’ contract in hand, Haley in May 1968 steamed up the river
to meet Kunta Kinte’s village historian—the griot—who
confirmed the story that the writer had assembled and
By Robbert Dijkgraaf permanent twilight zone of across the room, you might As modern life relies increas- added all sorts of fascinating detail. This was “the money
I
hint, hope and certainty. think, “What an amazing co- ingly on big data, we’ll have to shot” in Haley’s decade of obsessive reporting and dilatory
t was the perfect holiday It’s a matter of statistics. The incidence!” But it could simply be on the watch for the look- writing that would make him rich, famous and ultimately a
surprise. On Dec. 15 the blip in the data might be an be a byproduct of a rather large elsewhere effect. Probability literary outcast.
latest results from the aberration. There is a chance of probability. How many places will lead us to say more often: After excruciating delays and distractions (and substan-
Large Hadron Collider at CERN 1 in 10,000 that CERN’s possible do you frequent (restaurants, What an amazing coincidence! tial rewriting by one of his old Playboy editors), “Roots”
in Switzerland were announced, new particle is a fluke—and, in museums, theaters, airports)? Some of these occurrences will was published as nonfiction in 1976. It caused a sensation
after early rumors had physi- this branch of science, those And how many people do you lead to new discoveries; others that only grew the next year, when ABC televised its eight-
cists buzzing. A signal in the know (friends, colleagues, will simply reflect how fre- part miniseries. The book and the TV shows, Mr. Norrell
data suggests a discovery that family, celebrities)? You’re quently we are looking else- rightly observes, “shifted mass culture to a new understand-
no one predicted: a possible Or does he? A possible bound to run into someone, where. ing of slavery and the black family.”
new particle several times somewhere. It isn’t as if you In the next six months, a Alas, “Roots” began to unravel almost at once. A Times of
heavier than the Higgs boson. new physics discovery. had predicted meeting this new series of experiments at London writer ventured back up the river and reported that
If confirmed, such a particle specific person in that precise CERN will confirm or deny the the griot had been prepped to tell Haley what he wanted to
could turn the current theoreti- restaurant. finding. Scientists will rerun the hear—and that he was an entertainer, not an authentic
cal models upside-down. Papers odds are too high. The norm for The challenges in discover- collisions many more times. As griot, anyway. Two authors sued Haley for plagiarism of
have already appeared, sug- the verification of a new parti- ing a new particle work in a the amount of data from the their similar books, and he had to cough up more than $2.5
gesting possible connections to cle is “five sigma”—a departure similar way. At CERN, protons collider increases, the outcomes million in today’s money to settle one case and pay the law-
the mysterious “dark matter” in from the mean of more than are collided at high speed a bil- can be compared more pre- yers. Then the academics piled on—establishing that Haley’s
the universe, or positing a new five standard deviations. That lion times a second. The debris cisely with the predicted curve. vaunted documentary and genealogical research was riddled
“supersymmetry” relating par- means a result is only accepted is analyzed in two huge detec- If the unexpected bump sticks, with errors and contradicted his claims.
ticles and forces. when there is a chance of 1 in tors and compared against a it could mean the discovery of a Haley staged a dignified retreat. “I was just trying to give
Is this a discovery? We’re 3.5 million that it is merely predicted curve calculated ac- new particle—and a future visit my people a myth to live by,” he took to saying. He could
not sure. Einstein once said, coincidental. In other words, a cording to scientists’ current to Stockholm for a lucky few. Or have avoided all the grief if he and his publishers had sim-
“God does not play dice,” to discovery requires a certainty understanding. What we have not. For the moment, physicists ply labeled the book what it was—a historical novel valid in
express his intuitive dislike of of 99.99997%. now is an unexpected bump, are condemned to sit at the its essential narrative but informed by the imagination. But
the fundamental role of chance Why is the bar so high? Be- where the data jumps off the table of the Great Gambler. then, of course, “Roots” would never have achieved the
in quantum physics. But parti- cause of the “look-elsewhere ef- curve. But given the amount of mythic stature it still enjoys today.
cle accelerators are the casinos fect.” For instance, if you walk data being crunched, there are Mr. Dijkgraaf is the director
of science, and particle physi- into a restaurant and suddenly bound to be statistical anoma- of the Institute for Advanced Mr. Kosner is the former editor of Newsweek, New York,
cists, like gamblers, live in a recognize an old friend eating lies, somewhere, sometime. Study in Princeton, N.J. Esquire and the New York Daily News.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
The Internet Tax Hostage Minimum Wages and the Total U.S. Economy
R
ecently we told you that Congress was online that did not exist off-line. It is a simple It is fascinating that an economics income scale) is neither the only nor
finally preparing to make permanent and effective policy that is consistent with the professor like David Neumark would probably ideal equilibrium. One can
analyze an economic policy from a imagine higher minimum wages low-
the Internet Tax Freedom Act and its letter and spirit of the Commerce Clause. narrow perspective and not consider ering the number of people drawing
ban on email and Internet ac- Anderson was one of many broad, long-term impacts (“The Evi- supplementary income from federal
cess taxes. It seems we mis- Alexander intervenes tax collectors who warned at dence Is Piling Up That Higher Mini- programs (Medicaid, disability, hous-
judged the tenacity of the In- to stop a Senate vote the time that the law would mum Wages Kill Jobs,” op-ed, Dec. ing, food and health-insurance subsi-
ternet taxers in the Senate. devastate state and local gov- 16). He reports that a 10% increase in dies), thus lowering government ex-
Sen. Lamar Alexander (R., on a permanent ban. ernment revenues. State and the minimum wage is expected to re- penditures, and lowering the
Tenn.) is leading the Senate local revenues have since sult in a 1% to 2% drop in employment justification for high marginal taxes.
dead-enders who are once surged more than 25%, ad- of low-skilled workers earning the Lower marginal taxes in turn help ex-
again holding hostage the popular ban on Inter- justed for inflation. One of the reasons that minimum wage. Assuming that his pand the economy, increase GDP, wage
net-only taxes. The House has passed a perma- state and local governments are awash in reve- worst case scenario is this 2% loss of growth and offset many, if not all, of
jobs in this low-wage group, let’s con- the jobs lost to higher minimum
nent ban several times, most recently as part nues—roughly $2.3 trillion per year—is that
sider the immediate effects. Out of wages.
of a larger customs bill. But Mr. Alexander and they disproportionately plunder communica- 100 workers two would lose their jobs A higher minimum wage and lower
friends are blocking Senate action until Con- tions services. as a layoff and be eligible for unem- marginal income tax in conjunction is
gress also votes on a more controversial mea- Last month the Tax Foundation noted that ployment compensation. The other 98 a policy which might do just that.
sure to give state and local governments more this year‘s increases “in federal, state, and local of these 100 workers would get raises ERIC HAGEMANN
authority to force out-of-state merchants to col- fees drove the national average wireless tax and of 10%. The net increase in wages for Los Angeles
lect online sales taxes. fee burden to its highest level ever—nearly 18 the entire group will be 7.8%, without
Sen. Alexander tells us that his opposition percent of the average U.S. wireless customer’s including the unemployment compen- After reading Mr. Neumark’s piece
to the Internet Tax Freedom Act is a “simple bill.” The foundation added that this is “almost sation for those laid off. Surely Mr. about the job-killing effects of mini-
matter of federalism,” and that it’s “none of two and one half times higher than the general Neumark would agree that a policy mum-wage hikes, I was left with the
Washington’s business” whether states and lo- sales tax rate imposed on most other taxable change causing a wage increase over feeling that if the same standards
7.8% for a significant group would be were applied to economics as to cli-
calities want to apply new taxes online. The goods and services.” Wireline phone service is
positive for society and a significant mate change, the science would be
Senator is mis-defining federalism to justify similarly taxed. economic stimulus for the geographic settled.
more taxing. Many state and local telecom taxes would be area affected. Whether new jobs are ROBERT WILSON
The Internet is the quintessential instrument applied to Internet access without the federal created by this amount of economic Ayer, Mass.
of interstate commerce, and under the U.S. Con- ban. Yet Mr. Alexander, who has fought for over stimulus is probably one of the rea-
stitution it is Washington’s business whether a decade to increase taxes on the Internet, sons why economic research has dif- The difficulty in sorting out mini-
state and local governments impair such com- claims to be unaware that communications are ferent outcomes related to increases mum-wage-raise results may stem
merce. One of the reasons the Founders aban- taxed more heavily than other goods and ser- in the minimum wage. from labor as investment rather than
doned the Articles of Confederation in favor of vices. He also says he doesn’t know if states WILLIAM PEASEconsumption. Certainly one consumes
the Constitution was to prevent local jurisdic- would reduce other taxes if they were given Columbus, Ohio less as costs rise. But maybe the labor
tions from placing unbearable tax and regula- more power to tax the Internet and that he price imbalance is settled in a two-
Mr. Neumark’s recap of economic step process. First, the owner at-
tory burdens on commerce crossing their bor- would not urge his state of Tennessee to make research that reconfirms the deleteri- tempts to justify the higher wage by
ders. such offsetting cuts. ous effect of minimum-wage hikes on reorganizing the work environment to
“An unrestrained intercourse between the Sen. Alexander also says the ban on taxing jobs was welcome, but do we seri- make employees more productive.
States themselves will advance the trade of email and Internet access is a special-interest ously have to keep convincing the de- Then the owner realizes he or she
each by an interchange of their respective pro- benefit akin to the “wind production tax credit.” niers of basic economic principles needs fewer of the now more produc-
ductions,” wrote Alexander Hamilton in Feder- Some special interest. Internet users make up that raising the cost of anything (that tive employees.
alist 11. “The veins of commerce in every part 85% of the U.S. population, and since when is is not addictive or critical for sur- One need only contrast the lower-
will be replenished, and will acquire additional the failure to tax something the same as an af- vival) reduces demand for that good tech McDonald’s I worked in 40 years
motion and vigor from a free circulation of the firmative tax subsidy? By that logic, every time or service? Do we really not have ago with many more employees and a
commodities of every part.” Uncle Sam fails to tax something it is a special- enough common sense, logic, elemen- far simpler menu to see the relentless
tary understanding of human behavior employment decline in a minimum-
Following Hamilton, Congress first passed interest giveaway.
and evidence to declare that an in- wage-forced, more productive work
the Internet Tax Freedom Act in 1998 because If Mr. Alexander and his chief running mates, verse cost-demand (or price-demand) environment.
America’s 9,600 taxing jurisdictions pose a Illinois Democrat Dick Durbin and Nevada’s relationship is settled economics? MARK MAISONNEUVE
mortal threat to this engine of innovation. At Harry Reid, want to fight for a separate vote on TED PETERSON Berkley, Mich.
a House hearing in 1997, Wade Anderson, an of- whether states can tax out of state online mer- Richmond, Va.
ficial with the Texas Comptroller of Public Ac- chants, go right ahead. They can win or lose on Greece has the highest minimum
counts, revealed the state’s longstanding inten- the merits, but they’re holding this other tax Our current equilibrium (high mar- wage in the world—enough said.
tion to tax email and he claimed that any online ban hostage because they fear that they can ginal taxes to support a welfare state ANDREW BLEKE
transaction routed through a server in Texas only win if they trade their sales tax increase for many people at the bottom of the Atlanta
would be taxable there. bill for the Internet tax ban. This is why Ameri-
Given the packet-switched architecture of cans hate Washington.
the Internet, and the fact that any communica- The taxers shouldn’t hold hostage the Inter-
tion can bounce through a multitude of states net Tax Freedom Act that has broad bipartisan How to Chill Government Corrupt Influences
and localities, Congress decided to ban taxes on support and that represents a sensible effort to Kimberley Strassel’s Dec. 18 Poto- state agencies. A similar process for
email and Internet access as well as multiple act exactly as the Founders intended to protect mac Watch “The Obama Secrets Re- instant messaging and government
and discriminatory taxes. In other words, state interstate commerce from the predations of pa- gime” points out the merit of Con- phone metadata should also be pur-
and local politicians could not place burdens rochial politicians. gress banning private email use for sued. This would be a costly endeavor,
the IRS, but laments that Congress but I’d happily pay more taxes for this
did not go far enough by banning all program.
Your Temperature May Vary federal employees from using private
email for business purposes. I argue
Ms. Strassel rightly focuses on
classified information security but
I
t wouldn’t be a family holiday conversation caused multiple deaths. Meanwhile, the U.S. that Ms. Strassel’s proposal also falls misses a bigger issue. All politicians
short. I would love to see Congress re- say things to get elected. Unfortu-
without some chatter about the weather. eastern seaboard enjoys record warmth. That quire that all government entities that nately, they often act contrary to
A year ago it was the cold in the American means a potentially bad winter for New England receive federal funding be prohibited their constituents’ desires once in of-
Midwest and Northeast ski resorts, even as cities like from using private email for any busi- fice. They pursue cronyism, graft,
brought by frequent visits A strong El Niño Boston save money on snow ness done in an official capacity. Con- special favors, regulatory overreach,
from the “polar vortex,” and explains the unusual removal. The rains are espe- gress should require that all govern- political oppression and various other
this year it’s the anomalous cially good news for parched ment business emails should emanate forms of corruption. Imagine the chill
variability caused by an espe- winter weather. California as the West and the from or be sent to a “.gov” domain on external corruptive influences if
cially strong Pacific El Niño. Sierra Nevada mountains are email address. It should back up the every communication with the gov-
That’s the term for unusu- seeing snowfalls that will help requirement with civil and criminal ernment was archived. Secrecy allows
ally warm temperatures in the tropical regions counter the multiyear drought. penalties against offenders. bad behavior. The government knows
The government should then retain this, which is why encryption debates
of the Pacific ocean related to trade winds. An Everything in America is politicized these
.gov communications in a central re- are raging in Silicon Valley and why
El Niño occurs every few years, with the 1997 days, including the weather. The El Niño effect pository for legal discovery when metadata collection was pursued. It
version the most powerful on record. is cited as proof of global warming that requires needed. With centralized archiving, would be a rare action of government
The result is the strange weather you’ve handing over more economic control to govern- access roles and retention schedules accountability if every message to and
been reading about—or living through. Torren- ments. The more humbling lesson is that could be standardized for uniform from a congressional .gov address
tial rains have hit South America and in the past weather varies in ways human beings still can’t availability in legal proceedings. Cen- was available for Freedom of Informa-
several days, tornadoes attributable in part to predict, much less control. This El Niño, both tralized record retention would also tion inquiry.
El Niño have ravaged the Southern U.S. and its benefits and destruction, shall also pass. keep the cost burden out of local and I would expect a higher level of ac-
countability and civility in all govern-
mental affairs from local to federal
Cuomo’s Education Retreat Time to Let the ‘Small Fry’
Become the ‘Smart Money’
levels. This leadership needs to start
with a courageous Congress that is
T
willing to bind itself now and in the
he latest federal education reform sends tests. Some teachers urged parents to opt out Responding to my Dec. 14 letter future and bring all government enti-
more power back to states and local dis- of state tests to undermine the new ratings. One (“Help the Small and Nimble Get a ties to a new standard of transparency.
tricts, but that poses risks to the extent in five students skipped testing this April. State Start Going Public”), Sheldon Saitlin JEFF MILANOWSKI
they are captured by teachers education officials claimed claims “small-fry” investors would Oakland, Calif.
unions. Witness New York, A case study in how civil disobedience was highest only ever be offered the opportunity
where Governor Andrew unions undermine among upper-crust communi- of a lifetime if “the smart money is
Cuomo is retreating on ties and low-scoring kids—i.e., sitting it out” (“There’s a Reason EPA Private Emails Violate
teacher accountability. teacher accountability. affluent parents disillusioned Smart Money Takes a Pass,” Dec. 19).
Advisory Committee Act
In a bid to snag Race to the by the grade deflation. Yet there is no reason why, under lib-
Top funds in 2010, New York Mr. Cuomo sought to temper eralized equity crowdfunding rules, In regard to your Dec. 19 editorial
growing firms could not raise money “The EPA’s Secret Staff”: The intimate
adopted Common Core standards and required the testing tantrum by anointing a 15-member from both ordinary and wealthy “so- involvement of outside environmental-
that 20% of teacher evaluations be based on task force to review Common Core standards and phisticated” investors, just as Star- ists in developing the details of the
student scores on state tests and another 20% tests. The council issued a 51-page report recom- bucks and Home Depot did before EPA’s Clean Power Plan through pri-
on local objective measures of student learning. mending more teacher, parent and student input Sarbanes-Oxley made going public so vate emails to and from Michael Goo
Student scores on the tougher new tests in devising new tests and standards. In practice, expensive. would seem to violate both the spirit
plunged. Proficiency dropped to 31% in reading this will likely mean dumbing-down tests to en- Having the general public as a and the letter of the Federal Advisory
and math in 2013 from 69% and 82%, respec- sure that more students pass. source of funding can help entrepre- Committee Act, which requires that all
tively, in 2009. The Governor’s school counselors also pro- neurial firms negotiate better deals “meetings” with nongovernmental ad-
Yet even as student measures plunged, local posed a moratorium on test-based teacher eval- with venture capitalists and potential visers be open to the public. At the
school districts in cahoots with the unions uations through the 2018-19 school year, which acquirers. This is what happened same time it should also be noted that
when the technology startup Oculus the Dick Cheney energy task force un-
rigged evaluations to ensure that nearly all conveniently goes past his potential re-election
Rift proved its worth by raising $2 der the George Bush clearly violated
teachers got good marks. One tactic: Unions col- campaign. So teachers will get a four-year for- million in a crowdfunding campaign. the same law by developing detailed
lectively bargained for easier local tests to be bearance from accountability, which could in Seeing the firm’s popularity, Face- policy recommendations in extensive
part of their evaluations. Lo, 96% of teachers time become de facto permanent—like Mr. book bought it for $2 billion in 2014. private, basically “secret,” meetings
statewide were rated “effective” or “highly effec- Cuomo’s “temporary” ban on shale oil drilling But given the morass of regula- with a long list of oil-industry repre-
tive” last year while only about a third of stu- and millionaire’s tax. tions holding back equity crowdfund- sentatives, the contents of which re-
dents passed state reading and math tests. Mr. Cuomo started as a promising voice of ing, all Oculus funders got out of the mained unavailable to the public.
Mr. Cuomo responded in January with a call centrist reform in a state that desperately deal were T-shirts, posters and fancy JOHN STERLING
for more stringent evaluations. And this year’s needs it, but in his second term he has moved headsets. It’s time to let the “small Asheville, N.C.
budget agreement required that state test left with his $15 minimum wage and fracking fries” become the “smart money” by
scores account for half of teacher evaluations ban. His about-face on accountability doesn’t updating the onerous, unnecessary Letters intended for publication should
rules that hinder their ability to pros- be addressed to: The Editor, 1211 Avenue
and linked tenure to the new ratings. Tenured bode well for the rest of his education agenda,
per through startup investing. It’s a of the Americas, New York, NY 10036,
teachers with at least two consecutive “ineffec- and it shows why teachers union chief Randi matter of simple egalitarian justice. or emailed to wsj.ltrs@wsj.com. Please
tive” ratings could be fired. Weingarten (a task force member) went along JOHN BERLAU include your city and state. All letters
The unions took revenge by fueling a public with the federal devolution of testing power to Senior Fellow are subject to editing, and unpublished
outcry against over testing, though their collec- the states. She thinks she can own many of Competitive Enterprise Institute letters can be neither acknowledged nor
returned.
tive-bargaining had encouraged more (if easier) them politically. Washington
OPINION
Wages With Minimal Wiggle Room Go Live

By Andy Puzder of $2,370 a year would decrease the
Elsewhere,
L
ong the target of progres-
sives looking to increase
profit per employee by 38%.
That makes those jobs less valu-
able to the company and creates an
We’re Cutting
the minimum wage, Wal-
Mart announced earlier
this year that the company
incentive to eliminate positions. Not
surprisingly, the Congressional Bud-
get Office found that increasing the
Carbon Here
would increase its base wage to $9 minimum wage to $9 an hour would
an hour in April and $10 an hour by cost the economy about 100,000 jobs. By Allysia Finley
E
February 2016. How’s that working At $10.10 an hour, these employee
out so far? would make $4,446 more a year, arlier this month California
In November Wal-Mart announced decreasing profit per employee by Gov. Jerry Brown promised to
a 10% decline in earnings per share, 71%. At this level, the CBO found that cut greenhouse-gas emissions to
for the fiscal year’s third quarter. the economy would lose about 80% below 1990 levels by 2050. This
Higher wages were “by far the big- 500,000 jobs. goal will be nearly impossible to
gest driver of the decline in consoli- At $12 an hour, the employee achieve with California’s current popu-
dated operating income,” as CEO would make $7,410 more a year lation, projected to grow by 30% over
Doug McMillon put it in the earnings resulting in a loss per employee of the next 35 years to 50 million. So
conference call. In October Wal-Mart $1,110, eliminating the employee’s ecovangelists are trying to block any
predicted a 6%-12% decline next year entire contribution to the company’s economic development that could help
GETTY IMAGES
in earnings per share—despite the success. At $15 an hour, the employee support more people.
company’s plan to reduce the number would make $14,290 more a year, The Newhall Ranch project in north
of shares in a $20 billion buyback. resulting in a loss per employee of Los Angeles County, which aims to
Wal-Mart’s hourly wage increases $7,990. provide housing for nearly 60,000
accounted for “approximately 75%” There is no CBO estimate for the people as well as tens of thousands of
of the reduction, according to CFO day in 25 years when the company Fortune 500 as a proxy for the retail job losses if the government makes jobs at stores, schools and recreational
Charles Holley. predicted the earnings-per-share dip. industry. That is more than 20 compa- entry-level labor so expensive that centers, is the most recent target.
The stock is still more than 10% down. nies, including Wal-Mart, Target, companies actually lose money by
So at what point do minimum- McDonald’s, Starbucks and Walgreens. having such employees on staff. The
The per-employee profit at wage increases force employers to The total adds up to $36.4 billion potential harm seems self-evident. The Newhall Ranch project
Apple is $407,000. For big eliminate jobs and reduce growth, in annual profit (about $3 billion less Both these averages and Wal-
hurting the working-class Americans profit than Apple alone), 5.8 million Mart’s experience indicate that retail near Los Angeles is green
retailers, it’s $6,300. No the policy intended to help? employees (about 60 times as many businesses would be unable to absorb but not green enough for
wonder Wal-Mart feels the The answer varies by company and as Apple employs) and annual profit such labor-cost increases absent dra-
industry. For example, Apple is the per employee of $6,300 (1.5% of matic price increases or severe cost- the antidevelopment crowd.
pinch of its pay increase. most profitable company on the For- Apple’s profit per employee). cutting. With low inflation and the
tune 500. With $39.5 billion in annual How would a minimum-wage in- economy growing at an annual aver-
profit and about 97,000 employees, crease affect the retail industry? age of about 2.2%, dramatic price With energy-efficient lighting, com-
Plummeting earnings wasn’t the Apple’s annual profit per employee is According to the Bureau of Labor increases are unrealistic. Most busi- prehensive recycling, bike trails and
plan, and presumably management $407,000. This is the amount Apple’s Statistics, the average hours worked nesses would turn to slashing costs, drought-tolerant landscaping, the
took other steps it assumed would employees contribute to the success a week in the retail trade sector is and hardest hit would be the most 12,000-acre planned community would
prevent the decline. The lesson is of the business, on average. 31.5. Assuming an employee earns vulnerable among the working class. be a green Levittown. But the pro-
that America’s largest private em- Apple could absorb a minimum- the current minimum wage of $7.25 With the percentage of people posed development—one of the
ployer—known for its ability to con- wage increase easily. Its employees an hour and works only 30 hours a working or actively looking for work biggest in state history—has been
trol costs and operate efficiently— are typically highly compensated and week, an increase to $9 an hour hovering at lows not observed since under siege from its inception in 1994
lost profit because the company thus not many workers would be would result in an annual wage the 1970s, does it make sense to use by environmental activists.
couldn’t offset a wage increase to $9 affected. Second, each employee pro- increase of $2,730. the force of law to drive up the cost The California Supreme Court
an hour by increasing prices, auto- duces a hefty amount of profit for the Generally, highly compensated em- of employing working-class Ameri- recently rejected Newhall’s final envi-
mating tasks or scheduling employ- company, on average. ployees contribute more to a com- cans? Instead of creating a living ronmental-impact report. The court’s
ees more efficiently. The situation is far different for pany’s success than minimum-wage wage, the fight for dramatic mini- legally nebulous decision could delay
Unlike the government, Wal-Mart America’s retail businesses, where a employees, who are often less experi- mum-wage increases could leave construction for years—and cast a
can’t survive if it isn’t profitable. minimum-wage increase would be enced and entry-level workers. But millions with no wage at all. pall over future development.
When profits decline, companies must most deleterious. Combine every even assuming that minimum-wage Newhall’s report, which the Depart-
react—or shareholders will. Wal- retailer, restaurant, supermarket and employees contribute $6,300 on aver- Mr. Puzder is the chief executive ment of Fish and Wildlife approved in
Mart’s stock suffered its worst single retail pharmacy company in the age to a business’ success, an increase officer of CKE Restaurants. 2010, was more than 5,000 pages, with
hundreds of pages dedicated to analyz-
ing its greenhouse-gas emissions as
Fishermen on the Hook to Pay for Their Own Regulators required by recent regulatory amend-
ments to the 1970 California Environ-
mental Quality Act (CEQA). The state
By David Goethel back, and recording our expenses home around $300 per trip. That’s stated NOAA “has chosen an inter- wildlife agency projected that Newhall
F
down to how much we spent on not a lot, but it’s enough to make a pretation of the FY15 report lan- would reduce greenhouse-gas emis-
ew professions are as signifi- lunch. living. Adding $710 in new costs guage that is inconsistent with con- sions 31% by 2020 relative to the
cant to New England’s econ- The program is unnecessary given means I’ll lose money on every mon- gressional intent, and consequently, California Air Resources Board’s 2008
omy and history as fishing. Yet the heavy regulation that exists. And itored trip. that very high [at-sea monitoring] “baseline” model. This was a larger
the ranks of groundfish fishermen last month NOAA informed us that, The same will be true across the costs will soon unreasonably burden reduction than the 29% cut that the
have dwindled so much that we’re beginning on Jan. 1, groundfish fish- entire industry, which NOAA itself already struggling members of the board has mandated statewide.
now an endangered species. The ermen must pay an estimated $710 a acknowledges. A June 2015 report by fishing industry in the Northeast.” The report also included measures
causes are many—but the one now day when a monitor is present. That the agency’s Northeast Fisheries The courts are the industry’s last for the developer to restore habitat for
threatening us with extinction is the fee covers the monitors’ training, Science Center estimated a $710 a chance. This month, along with the species potentially affected by the
federal government. Along with one day at-sea monitoring fee would Northeast Fishery Sector 13, I filed a development, such as the coast horned
other plaintiff, I’m suing the Na- render 59% of New England ground- federal lawsuit—Goethel v. Pritzker. lizard and Townsend’s big-eared bat.
tional Oceanic and Atmospheric My daily catch brings about fishermen unprofitable. Our claim: Neither NOAA nor its sub- U.S. Fish and Wildlife Service officials
Administration to stop it from sink- The puzzling question is why sidiary, the National Marine Fisheries would move any unarmored three-
ing New England’s groundfish indus- $1,500. I take home $300. groundfishermen must cover these Service, has the authority to charge spine stickleback—a tiny fish pro-
try for good. The feds want me to pay costs. Congress has appropriated groundfishermen for at-sea monitors. tected under state and federal law—
Groundfish include cod, haddock funds for the at-sea monitoring pro- Even if Congress had granted this out of harm’s way.
and 11 other common bottom-dwell- $710 for ‘monitored’ trips. gram, and as a Senate Appropriations authority, they would have had to fol- No matter. The Center for Biologi-
ing species. After years of dwindling Committee report noted in June, low the process called for in the cal Diversity, along with other local
stocks, in 2012 the U.S. Department “Since fiscal year 2012, the Commit- Administrative Procedure Act and green groups, sued to block the
of Commerce issued a disaster decla- mileage to and from the fisherman’s tee has directed [the National Marine other statutes—which they haven’t. development, arguing that the state
ration for groundfish territory off boat, supervisor salaries, data Fisheries Service] to provide ade- Groundfish fishing has been syn- wildlife agency’s methodology for
the coast of New England. Over the processes and all other administra- quate funding for at-sea and dock- onymous with the region for 400 analyzing its greenhouse-gas emis-
past four years my cod quota—my tive costs. It also covers a set profit side monitoring for all fisheries with years, yet NOAA will force the indus- sions was flawed. They also con-
bread and butter—plummeted from margin for the three companies pro- approved catch share management try to go belly up. Surely we tended that the stickleback conserva-
60,000 pounds to 3,700 this year. I viding the monitors. What those plans,” i.e., the sector system in shouldn’t be relegated to the history tion plan violated California’s
caught my limit in four days in June. margins are, neither NOAA nor the which I fish. NOAA instead spent books by this overzealous federal prohibition against “taking” and “live
Shifting ocean patterns have cer- companies have disclosed. this money on other projects. agency. transplanting” legally protected spe-
tainly contributed to our struggles, Groundfishermen are not big, A bipartisan group of senators, cies—although state law allows “regu-
but regulators are a separate anchor commercial operations that can including Susan Collins (R., Maine) Mr. Goethel is a groundfish fisher- lated taking” of threatened species.
altogether. Groundfish fishermen are absorb these costs. On a typical day and Elizabeth Warren (D., Mass.), man out of Hampton, N.H. He is California’s Second District Court
organized into a patchwork of 15 I catch about $1,500 worth of fish. highlighted this troubling fact in represented by Cause of Action, a of Appeal rejected all of the lawsuit’s
sectors, i.e., government-designed After covering all of my boat’s April. Writing to the assistant ad- government watchdog group based dubious claims, but a 5-2 majority of
cooperative organizations. We oper- expenses and paying my crew, I take ministrator of NOAA Fisheries, they in Washington, D.C. the state Supreme Court sided with
ate under at least seven overlapping the obstructionists. The majority nit-
federal and state entities and pro- picked the report’s methodology, con-
grams, all of which have their own
regulatory nets.
As if warrantless searches from
Subsidiaries in Europe? Playbook, Please jecturing that perhaps a greater than
31% reduction in greenhouse emis-
sions from new projects might be
the Coast Guard, catch inspections By Douglas Holtz-Eakin is a crucial internal-strategy docu- strategy behind a new product needed to meet the 29% statewide
S
upon returning to port, and satellite ment, laying out how the team in- launch or strategic acquisition? The mandate because it could be harder
tracking weren’t enough, at-sea uppose a group of friends agree tends to compete. master file would be a year-by-year to achieve efficiencies from older,
monitors also accompany us on to organize a new football Yet this is what the Organization guide to these company plans. already-constructed developments.
roughly one in five randomly selected league. It would make sense for for Economic Cooperation and Devel- The BEPS agreement is a done There was no scientific evidence in
fishing trips. They are hired by three them to write rules governing the opment wants: to force successful deal. By the end of 2017, U.S. firms the court record to support this
for-profit companies—one of which gameplay, the finances of the league, global companies, including U.S. will have to start handing over their hypothesis, which was floated by the
is led by the former NOAA official and the process for drafting and multinationals, to hand over their playbooks to the governments of as state attorney general’s office.
who designed the monitor program. trading players. “playbooks” to foreign governments. many as 34 OECD member countries, The court suggested ways to revise
They follow us around and take notes But what about a rule that re- The OECD will get away with it unless depending on how many implement the report but emphasized that it can-
on everything we do. That includes quires each team to hand over its Congress or the White House acts to BEPS rules. So far six—including not “guarantee that any of these ap-
measuring our nets, measuring fish playbook to the league? No team protect U.S. companies’ secrets. Australia, Spain and Portugal—have proaches will be found to satisfy
we bring in and those we throw would want to do that. The playbook This alarming situation is the re- initiated or enacted the rule requir- CEQA’s demands as to any particular
sult of the OECD’s fight against Base ing submission of master files. project.” In dissent, Justice Ming Chin
Erosion and Profit Shifting—the term Nothing could be more valuable to said that the majority “is permitting
it uses for when companies shift a U.S. company’s competitors than the project opponents to relitigate
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY profits and assets world-wide to the information in its master file. But some already decided issues.” He
minimize their tax bills. There is a the master file isn’t subject to any noted that “delay the project long
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp complex international BEPS agree- confidentiality safeguards beyond enough and it has to meet new targets,
Gerard Baker William Lewis ment, including rules for sharing and those a foreign government decides and then perhaps new targets after
Editor in Chief Chief Executive Officer and Publisher disclosing a wide range of corporate to provide. A foreign government that. All this is a recipe for paralysis.”
Rebecca Blumenstein; Matthew J. Murray, Deputy DOW JONES MANAGEMENT:
information, ostensibly to curb inap- could hand the information over to Green activists have long sought to
Editors in Chief; Almar Latour, Executive Editor Anna Sedgley, Chief Financial Officer; propriate tax avoidance. any competitor or use it to develop a block new development—and Califor-
DEPUTY MANAGING EDITORS: Mark H. Jackson, General Counsel; For instance, beginning next year new one. And the file could be nia housing costs are the highest in
Ashley Huston, Chief Communications Officer;
Michael W. Miller, Senior Deputy; Thorold Barker,
Paul Meller, Chief Technology Officer;
the BEPS rules require U.S.-head- hacked. the country due to the mismatch
Europe; Paul Beckett, Asia; Christine Glancey,
News Operations and Talent; Neal Lipschutz, Mark Musgrave, Chief Human Resources Officer; quartered companies that have for- Before the U.S. has anything more between supply and demand. The
Ethics and Standards; Alex Martin, Enterprise; Katie Vanneck-Smith, Chief Customer Officer eign subsidiaries to maintain a “mas- to do with the BEPS project, policy median house price in the Los Angeles
Ann Podd, Global Production; Andrew Regal, OPERATING EXECUTIVES: ter file” that provides an overview of makers in this country need to make metro area is $507,000 compared with
Global Head of Video; Gabriella Stern, Strategic Edwin A. Finn, Jr., Barron’s; Edward Roussel,
Initiatives; Jessica Yu, Global Head of Visuals
the company’s business, the global sure that American companies are $210,000 in Dallas, $290,000 in Miami,
Innovation; Ingrid Verschuren, Data Strategy;
Paul A. Gigot, Editor of the Editorial Page; Suzi Watford, Marketing; allocation of its activities and in- not forced to give up sensitive and $388,000 in Washington, D.C., and
Daniel Henninger, Deputy Editor, Editorial Page Professional Information Business, Sales: come, and its overall transfer pricing proprietary business information to $412,000 in New York.
Nancy McNeill, Global; William Ashworth, policies—a complete picture of its other countries—and that any infor- Housing costs have helped to drive
WALL STREET JOURNAL MANAGEMENT:
Americas; Florence Lefevre, Europe; Tomasz
Trevor Fellows, Head of Global Sales;
Rustowski, Asia global operations, profit drivers, sup- mation they do provide is protected middle- and low-income residents out
Chris Collins, Advertising; Christina Komporlis,
Circulation; Jason P. Conti, Legal;
ply chains, intangibles and financing. by strict confidentiality safeguards. of the state. Newhall Ranch appears to
Joseph B. Vincent, Operations; Larry L. Hoffman, In effect, the master file is a U.S. be one more human sacrifice on the al-
Production multinational’s playbook. Research Mr. Holtz-Eakin is president of the tar of the greater environmental good.
EDITORIAL AND CORPORATE HEADQUARTERS: plans to develop new intangible American Action Forum and a former
1211 Avenue of the Americas, New York, N.Y., 10036 assets? The design and development director (2003-05), of the Congres- Ms. Finley is an editorial writer for
Telephone 1-800-DOWJONES
of advanced products? The financing sional Budget Office. the Journal.
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CITY NEWS A16, A17 | PROPERTY A18 | ARTS & ENTERTAINMENT A19 | SPORTS A20
Not Very Patriotic Lighting Up
PETER J. SMITH FOR WSJ

The New Year
ASSOCIATED PRESS
Jets stay in playoff hunt with big win SPORTS | A20 CITY NEWS | A17
WSJ.com/NY * * * * THE WALL STREET JOURNAL. Monday, December 28, 2015 | A15
Housing Prices Set Record Going Strong

Manhattan condo and co-op prices
continue to rise even as sales are stable.
Annual median sales price* Annual total sales†
Manhattan marker is the unaffordability, of home- summer, with a modest uptick of 13.5% from $965,000 from
ownership in New York City. late in the year. both the previous quarter and $1.5 million 18,000
more than $1 million Many brokers and analysts The number of foreign buy- the fourth quarter of 2014, ac- Condos
for co-ops and condos; attributed the marker to a ers dropped, they said, while cording to an analysis of city Condos Co-ops
surge in closings at expensive New York buyers became ex- Department of Finance data by
luxury closings surge new buildings that have been tremely price sensitive. The Wall Street Journal. The 1.0 12,000
under construction for years, “There is more supply and average price also increased to Total
BY JOSH BARBANEL including many deals signed more headwinds in the mar- a record of $1.9 million in the
months or even years ago. The ket,” with supply pressures fourth quarter from $1.67 mil-
0.5 Co-ops 6,000
Manhattan apartment prices rest of the market showed varying from neighborhood to lion in the third quarter.
reached new highs in 2015, more modest prices gains and neighborhood, said Dolly Lenz, For all of 2015, the median
with the typical price of a co-op slower sales growth. a broker in the luxury market. price also set a record:
or condominium topping $1 Instead of celebrating the “Buyers have a whole lot of $980,000, up 6.5% from 0 0
million for the first time as the new benchmark, brokers de- choices and they are voting $920,000 in 2014. Sales were
2005 ’07 ’09 ’11 ’13 ’15 2005 ’07 ’09 ’11 ’13 ’15
year drew to a close. scribed an alternative real es- with their dollars.” up slightly too, by 2.1%, but be-
The new benchmark, in the tate universe in the second half The median price of a Man- low the sales pace in 2013. *2015 sales through Dec. 21. †Sales through Dec. 21 of each year.
fourth quarter, was a milestone of 2015: There were signs of a hattan apartment rose to There were 12,872 sales in 2015, Source: WSJ analysis of NYC Department of Finance filings
in the rising cost, and for many slowdown beginning in the nearly $1.1 million, an increase Please see PRICES page A16 THE WALL STREET JOURNAL.
Sewage Overflow
Pollutes Hudson,
Vexes New Jersey
BY KATE KING permits require system opera-
tors to develop long-term plans
The Hudson River is much to reduce overflows, a years-
cleaner than it used to be, but long task that has already been
antiquated infrastructure still completed for 790 of the 859
contaminates the waters be- permits. New Jersey’s sewer-
tween New York City and New system operators are just now
Jersey with untreated sewage starting work on long-term
and storm water during heavy mitigation plans.
rainfalls. This past summer the state
A kayak trip can be a hard Department of Environmental
sell for Noelle Thurlow, who Protection began issuing per-
runs a small water-sports busi- mits that require treatment
ness off Pier 13 in Hoboken. plants to reduce overflows.
PETER J. SMITH FOR THE WALL STREET JOURNAL
She tries to allay customers’ One of the first visible results

fears about pollution in the wa- from the department’s new
ter and notes the vast improve- regulations will be public
ment from 30 years ago. Ex- signs, which must be posted
cept when it rains. by Jan. 1 near discharge loca-
“Anytime there’s a heavy tions so people know the site
rainfall, the water quality is is vulnerable to contamination.
poor,” said Ms. Thurlow, who
23 billion
helps measure pollution levels
as a volunteer for the environ-
mental nonprofit The River
Project. Estimated gallons of untreated
Two homeless New Yorkers camp outside Penn Station. The city is increasing its efforts to move the chronically homeless into shelters. After rainstorms, the water wastewater released annually
off Pier 13 tests positive for el- from 213 places in New Jersey.
Choosing the Street Over a Shelter

evated levels of enterococci, a
bacterium found in human fe-
ces, Ms. Thurlow said. The con- The thrust of the new per-
tamination comes from over- mits is a requirement for all
BY CORINNE RAMEY Faced with increasing crit- partment of Homeless Ser- spond to reports of homeless flows from the combined sewer cities and towns with com-
AND JOSH DAWSEY icism over a growing street vices after the commissioner people within an hour on the systems of Hoboken and bined sewers to develop,
homeless population, Mr. de resigned. Many don’t trust streets of Manhattan, but nearby cities. within five years, detailed long-
At Penn Station, dozens of Blasio in mid-December an- city agencies or workers be- moving people off the streets Combined sewer systems, a term plans for reducing over-
homeless people sat quietly nounced his data-driven ef- cause they feel they have can be problematic. relic of the country’s earliest flows. Operators must inven-
amid the Christmas decora- fort called NYC Homeless been let down in the past, he Shelters are often decrepit urban plumbing, use a single tory their assets, create
tions as travelers headed Outreach & Mobile Engage- added. and packed, homeless resi- underground pipe to transport engineering models for the un-
home for the holidays. ment Street Action Team, or In New York City, 64% of dents and others say. An au- both sewage and storm water. derground flow, communicate
If New York Mayor Bill de HOME-STAT. homeless people not in shel- dit released by the office of Twenty-one cities and towns in with the public and develop so-
Blasio has his way, they and While the vast majority of ters are called chronically Comptroller Scott Stringer New Jersey have them, releas- lutions for sewer overflows, ac-
others who camp out on city the city’s homeless people are homeless, meaning they have said conditions in many shel- ing an estimated 23 billion gal- cording to the state.
streets will be moved into in shelters, the street home- a disability and have been ters haven’t improved, even lons of untreated wastewater New York City, where 70% of
shelters as the city boosts its less, who Mr. Blasio has said homeless for at least a year though Mr. de Blasio said each year from 213 locations the sewer system is combined,
team of outreach workers in number from 3,000 to 4,000, or have had four episodes of they would. Mr. Banks said across the state, according to has been under a legally binding
the coming weeks. are the city’s most visible. homelessness within the past the administration was fo- New Jersey environmental of- consent order to reduce sewer
Experts in homelessness Experts say some suffer from three years, according to fed- cused on fixing them and he ficials. overflows since the 1990s. The
say it won’t be easy—and mental illness, while others eral data. was visiting frequently, even The U.S. Environmental Pro- city has spent $2 billion on
some of the homeless agree. are addicted to drugs or alco- “For people who have been late at night. tection Agency has been push- overflow reduction over the
Those interviewed at Penn hol, making it difficult to on the street for a long time, With shelters near capac- ing states to minimize such past 20 years and has set aside
Station said outreach workers convince them to move. it’s not a simple thing to get ity, data show the city rents sewer overflows since 1994, an additional $2.1 billion in its
were a familiar but unwel- “There are people who them to come in,” said Nan about 1,100 hotel rooms a but New Jersey has been slow 10-year capital plan for projects
come presence. have fallen through the safety Roman, president and chief night for homeless New York- to tackle the problem, federal such as pumping stations, stor-
“They force you into them net, and they’ve lost hope,” executive of the National Alli- ers, at a cost of more than $1 statistics show. age tanks and rain gardens,
shelters,” said Debbie Sha, 40 said Steven Banks, commis- ance to End Homelessness, an million a week. The EPA has issued 859 per- which divert storm water from
years old, who said she used sioner of the city’s Human advocacy group. City lawyers are studying mits to combined-sewer-sys- the sewers, city officials said.
to live in Queens. “These shel- Resources Administration, Mr. de Blasio has vowed regulations to understand tem operators in 772 munici- In Connecticut, Hartford’s
ters are unpleasant or unsafe.” who is now leading the De- his administration will re- Please turn to page A16 palities across the country. The Please see SEWERS page A16
43°
TODAY’S
Weather
Real Feel
Big Sound Bumps Up
9 a.m. 26°
HIGH
5 p.m. 30°
Record High
New Year’s Eve Bash
65° (2008) BY ANDY BATTAGLIA speaker cabinets looming at
the edge of the bumper-car
SOME SUN, Sunrise/Sunset Nicky Siano knows a good track at Eldorado Auto Sk-
COLDER 7:19 a.m./4:36 p.m. throbbing bass tone when he ooter, home to laser-lit bum-
hears one. The DJ and party per cars and an arcade filled
Tuesday’s High impresario has been behind with Skee-Ball and assorted
the controls of some serious carnival games.
48° sound systems, running the Built on location after the
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
music at Studio 54 and other ride opened in 1973, the vin-

legendary New York disco hot tage, state-of-the-art system
N.Y. Sports Lineup spots during their thumping, was created and installed by
bumping 1970s heyday. Richard Long, renowned in the
7:30 p.m. Monday This New Year’s Eve he will ’70s and ’80s as the premier
Nets @ Heat preside over an all-night sound designer for some of
disco-homage dance party in a the era’s most popular night-
setting with one of the best, clubs, including Studio 54,
and perhaps least-known, Paradise Garage, Club Zanzi-
8 p.m. Monday sound systems in New York bar and the Palladium. He
Rangers @ City: a historic bumper-car went on to design sound for
Predators ride in Coney Island. clubs internationally before
“They’re really legendary, succumbing in 1986 to AIDS.
and they’re nowhere else,” Mr. Scott Fitlin, operator of the
For N.Y. sports coverage, see A20 Siano said of the four big Please see SOUND page A19 Nicky Siano a DJ and party impresario, will host a disco party at Coney Island’s Eldorado Auto Skooter.
A16 | Monday, December 28, 2015 * *** THE WALL STREET JOURNAL.
CITY NEWS
NEW JERSEY
Greater Two Are Shot Dead
Fog Clips New York City Skyline
New York At Party in Paterson
Two men were shot and
Watch killed early Sunday at a party in
a warehouse in Paterson, au-
thorities said.
Police said they responded to
a report of shots fired at a ware-
house on First Avenue and found
NEW YORK two dead—Fernando Irby, 24
years old, and Kashif Belfield, 26.
Artist Ellsworth Kelly No arrests have been made,
Dies at Home at 92 police said.
The American artist Ellsworth —Derek Kravitz
Kelly, whose exuberantly colored
abstractions hang in major muse- BROOKLYN

ums around the world, has died
at 92 years old.
Police: Man Faces
Mr. Kelly Hate-Crime Charge
died Sunday af- A man who allegedly harassed
ternoon at his four others and called for “Arab
home in Spen- blood” has been arrested on a
certown, N.Y., charge of menacing as a hate
according to his crime, police said.
gallerist, Mat- Ellsworth Kelly James Samways was arrested
thew Marks. on the misdemeanor charge early
Known for his clean-lined Sunday in Brooklyn’s Marine Park
paintings and sculptures, Mr. neighborhood.
Kelly bridged the gap between Police said 40-year-old Mr. GRAY DAY: Lower Manhattan is the backdrop to the illuminated Jane’s Carousel in the Dumbo section of Brooklyn Bridge Park on Sunday.
European and American modern- Samways, yelling obscenities, first
ism but doesn’t fit into any par- trailed the men as they walked
ticular movement, Mr. Marks said Saturday night. Mr. Samways
Choosing the Street Over the Shelter

Sunday night. then allegedly approached them
Born in Newburgh, N.Y., in with what appeared to be a silver
1923, Mr. Kelly studied at Brook- handgun and yelled: “I want to
lyn’s Pratt Institute before his in- see Arab blood in the streets. I
duction into the U.S. Army. am an Israeli. Go back to Mecca.” Continued from page A15 housing, he said.
The first volume of his cata- Mr. Samways was in custody how aggressive they can be in In Utah, a Housing First
logue raisonné was published Sunday and unavailable to com- moving the homeless from strategy decreased chronic
this summer. ment. the street, worried about run- homelessness by 91% from
—Jennifer Smith —Associated Press ning afoul of laws and the 2005 to 2015, said Lloyd Pen-
city’s homeless advocates. dleton, the former director of
Police Commissioner Wil- the state’s Homeless Task
liam Bratton floated the idea Force.
of invoking a rule more fre- “We repurposed existing
BOUTIQUE quently that allows the city to funds,” he said. “You’re incur-

New York 5th Ave move homeless New Yorkers ring the cost anyway in the
who are within a certain dis- shelter and in the emergency
tance of a bank ATM. Yet ad- services.”
vocates have begun to protest In Utah, housing a home-
such ideas, afraid it will hurt less person costs about
homeless residents. $12,000 a year, but a homeless
Last Monday, Mr. de Blasio person on the street costs
said city workers who re- more than $20,000, he added.
cently crisscrossed the city to Some of those sitting in
clear homeless encampments Penn Station traced their
were able to connect 40% of homelessness to lost jobs or
the people they encountered legal issues. While many
with services that included A homeless person who identified herself as Pat, in Penn Station. seemed confused, almost all
food, housing and medical said they preferred living on
Leica M Monochrom care.
The mayor called that num-
mediately placing people in
housing, said Philip Mangano,
First, bypasses the shelter
system and puts the chroni-
the street—or in the station—
to the alternatives.
Digital Camera (Black) ber impressive and said his former executive director of cally homeless directly in “I’m personally half awake
18 Megapixels Monochrome CCD Sensor administration wouldn’t allow the U.S. Interagency Council apartments and provides them when I’m sleeping,” said a
2.5" TFT LCD Display encampments to continue. on Homelessness during the with mental-health services. woman who identified herself
National research shows George W. Bush administra- Research shows 85% to 90% as Pat, 55 years old. “Out here
Black Chrome Finish the most successful solution tion. of the chronically homeless it’s another world and another
DNG (RAW) + JPEG Formats to chronic homelessness is im- The policy, called Housing will remain in supportive way to live.”
Maximum ISO 10000
SEWERS
Minimalist Design - No Red Leica Logo
New Leatherette Body Covering
Protection, said New Jersey
has eliminated 68 overflow dis-
steps on their own. The North
Hudson Sewerage Authority,
Water Woes
charge locations in the past 20 which treats the wastewater New Jersey
$6,996 (Lens not included) years and is aggressively ad- for Hoboken, Weehawken,
PRICE REFLECTS 12% INSTANT SAVINGS Continued from page A15 dressing the remaining 213. West New York and Union City, 21 municipalities with
sewage authority is building a Every long-term plan will this year finished replacing a combined sewer systems
4-mile-long, 18-foot-wide un- cost millions of dollars to com- stretch of sewers on a street in
LEICA BINOCULARS ON SALE derground tunnel as part of a plete, depending on the size of Hoboken that dated to the Civil 213 combined sewer
$2 billion effort to reduce the system, and the state has War era and were made of overflow discharge points
sewer overflows, state environ- earmarked $15 million in low- wood, said Executive Director across the state
Willoughby’s Is The Place To Buy Your Leica mental officials said. The tunnel interest loan assistance, Mr. Richard Wolff.
will store more than 40 million Kennedy said. Once the plans The sewer authority has 23 billion gallons of
gallons of additional wastewa- started investing in overflow untreated sewer water
ter during heavy rain, greatly mitigation projects such as a 2- released per year
reducing overflow into the Con-
‘Anytime there’s a mile sewer separation in Hobo-
www.willoughbys.com necticut River, officials said. heavy rainfall, the ken, Mr. Wolff said. The agency U.S.
NYC’s Oldest Photographic Emporium -Established 1898 For some environmentalists, has boosted its typical funding
298 Fifth Avenue, NY, NY 10001 New Jersey’s efforts fall short.
water quality is for overflow reduction projects 772 municipalities with
OPEN 7 DAYS A WEEK
(corner of 5th Ave. & 31st St.) “It’s a plan to come up with a poor’ in the Hudson. from $20 million to $50 million combined sewer systems
212.564.1600 plan,” Jeff Tittel, director of in its five-year, $74 million cap-
NYC Department of Consumer Affairs #0906861
New Jersey Sierra Club, said of ital budget, he said. 9,350 combined sewer
the state’s process. “It allows are complete, cities and towns Hoboken Mayor Dawn Zim- overflow discharge points
these communities to keep al- will start building the infra- mer said her administration is across the country
CHARLES P. ROGERS BEDS DIRECT lowing raw sewage to flow into
our waterways for at least an-
structure to reduce sewer
overflows, he said.
building rain gardens, green
roofs and other projects that 850 billion gallons in
Year End Clearance on every bed & mattress. other five years, if not longer.” In anticipation of the new she hopes will keep storm wa- untreated sewer water
Daniel Kennedy, assistant state regulations, some New ter out of the sewer system released per year
IN-STORE & ONLINE - This week take an extra 10-20% off already
commissioner of the state De- Jersey cities, towns and sewer- and, in turn, keep raw sewage Source: U.S. and New Jersey environmental
reduced prices on every bed, every mattress, everything - PLUS - officials
partment of Environmental system operators have taken out of the Hudson River.
FREE DELIVERY on orders of $299 or more. Here are a few examples:
ESTATE LATEX MATTRESSES

Featured in Consumer Reports.
Queen $2699, Sale $1799,
Now $1439.20. All sizes on sale.
PRICES ditional sales at newly marketed
developments, some at high
prices, including 67 for more
than $5 million. Overall new de-
ter uncertainty over the sum-
mer about the economic
outlook here and world-wide.
Mr. Steinberg said activity
The first 12 of the Greenwich
Lane’s 199 condos and town-
houses closed during the fourth
quarter at an average price of
Continued from page A15 velopment sales rose 80% from has picked up since then, after a $12.7 million, according to city
ST. REGIS MATTRESSES compared with 12,608 in 2014, the fourth quarter of 2014. wave of price cutting by many records, including a $24.5 mil-
Featured in Consumer based on sales filed with the New apartments made up owners. “Sellers were learning lion penthouse.
Reports. Queen $1829,
city through Dec. 21 of each nearly 21% of sales in the that you are punished when you With 90% of the apartments
Sale $1099,
Now $879.20.
year. fourth quarter, compared with are too greedy,” he said. now in contract, Bill Rudin,
All sizes on sale. But the brokers worried the 13% in the same quarter in During the fourth quarter, chief executive of Rudin Devel-
current sales statistics don’t 2014. As a result, 2015 is in line the median condo price rose to opment, said with a limited
necessarily reflect current con- to be the biggest year in new a record of $1.7 million, while supply of apartments in the
ditions. In the fourth quarter, development sales since 2008, the average price rose to $2.6 neighborhood, the market re-
there were several hundred ad- with about $5.8 billion in sales million, also a record. At the mained strong.
so far, based on apartment same time, co-op prices were “From our perspective we
Above: Newhouse queen white leather
upholstered headboard $1899,
sales documents filed with the down slightly from the third have not seen a slowdown,” he
Sale $999, Now $899.10 .
King $2299, Sale $1399, CORRECTIONS city by Dec. 21.
The discrepancy is caused by
quarter to roughly $710,800
from $715,000 in the fourth
said. “We have seen a very
steady pace of lookers.”
Now $1119.20 .
AMPLIFICATIONS the long lag time between a
contract signing for a new de-
quarter of 2104.
Pamela Liebman, president
Left: Barcelona solid
mahogany platform bed. velopment and when the clos- of the Corcoran Group, said af- Notice to Readers
Queen $2399, Sale $1599, The number of shared ing takes place, often months ter a slowdown in the fall, the Ralph Gardner Jr. is away. The
Now $1279.20. rides for UberPOOL, the car- or years later than developers market is now strong, but buy- Urban Gardner column will
King $2699, Sale $1899,
Now $1519.20.
pooling feature for the app- originally forecast. ers have more choices in many resume next week.
driven car service Uber, rose At the early stages of the neighborhoods, and are “much
from 200,000 in October to housing market recovery, the more cognizant of price.”
Right: Antique 240,000 in November. Via, also most expensive buildings for “They are still ready,” she
brass & iron sleigh
a carpooling service, had more the most affluent buyers were said. “When they see the value We Want to Hear
daybed $1499,
Sale $899, than 310,000 completed rides the first to get financing. But is there, they buy.” From You
Now $809.10. in October, up from 230,000 in even now after a run-up in Among the new develop- Have something to say about
Optional pop-up August. An article on Saturday prices, most less expensive ments contributing to the soar- an article in Greater New
trundle stores a
second mattress
about carpooling incorrectly apartments in what developers ing median apartment price in York? Email us, along with
underneath. stated the increases were in call “affordable luxury” are Manhattan is The Greenwich your contact information, at
the number of requests for priced well above the $1.1 mil- Lane, on the site of the former gnyltrs@wsj.com. Your letter
rides instead of completed lion benchmark. St. Vincent’s Hospital in Green- could be published in our
CHARLES P. ROGERS ~ BED MAKERS SINCE 1855 rides. Leonard Steinberg, the pres- wich Village. The Rudin family weekly Feedback column on
NYC FACTORY SHOWROOM: 26 WEST 17 ST. (5-6 AVES) 212-675-4400/1-800-272-7726. ident of the brokerage firm and Global Holdings Inc. devel- Friday. Letters will be edited
SUN 12-6, DAILY 9-8, NEW YEAR’S EVE 9-6 & DAY 10-6, SAT 10-7 • CHARLESPROGERS.COM Readers can alert The Wall Street Compass, said the real-estate oped the luxury condo project, for brevity and clarity. Please
Journal to any errors in news articles
NJ. FACTORY STORE: 300 RT. 17 NORTH, EAST RUTHERFORD. DAILY & NEW YEAR’S 10-6, CLOSED SUN.
by emailing wsjcontact@wsj.com or market went into “a wait-and- which includes a blend of new include your city and state.
by calling 888-410-2667. see period” through October af- construction and old buildings.
THE WALL STREET JOURNAL. * * * * Monday, December 28, 2015 | A17
CITY NEWS
PETER J. SMITH FOR THE WALL STREET JOURNAL (2)

Activist to Help
Drop Crystal Ball
In Times Square Jason Andrle, left and Nick Bonavita put panels on the New Year’s Eve ball on Sunday. LEDs on the back of crystals, far left, will light
up for the big event Thursday night. Antipoverty group co-founder Hugh Evans will join Mayor Bill de Blasio in activating the ball drop.
BY KATE KING divided than ever,” Mr. Tomp- police unit, called the Critical chael Bloomberg smack dab on Kirk said. “Our model at Alliance is joining with Twit-
kins said. “This choice rein- Response Command, and the lips. Global Citizen is not about ter for the first time to show-
The special guest at Thurs- forces the idea that we are all stepped-up police presence at This year’s New Year’s fes- charity, it’s not about giving. case tweets from New Year’s
day’s New Year’s Eve celebra- citizens of the world to- this year’s Macy’s Thanksgiv- tivities won’t be the first time It’s about getting people to Eve celebrations from around
tion in Times Square is hoping gether.” ing Day Parade and the Dec. 2 Mr. Evans of Global Citizen use their voice to affect the world, Mr. Tompkins said.
to ring in a new era of social On Sunday, workers on the tree-lighting ceremony at uses a city landmark as the change.” As the clock strikes midnight
and environmental activism at roof of One Times Square in- Rockefeller Center. backdrop for his international Mr. Evans, a native of Mel- in each time zone, celebratory
this year’s ball drop. stalled the final triangular The new counterterrorism activism. bourne, Australia, who now tweets with the hashtag
Hugh Evans, co-founder and panels on the New Year’s Eve unit, equipped with long-range Mr. Evans, 32 years old, lives on the Upper West Side, #NewYearsEve are scheduled
chief executive of the antipov- ball. weapons and heavy-duty vests, started Global Citizen in 2012 wasn’t available for comment to be broadcast on screens in
erty group Global Citizen, is Organizers said they are was first deployed, with 110 with a now-annual music festi- Sunday. Times Square, he said.
scheduled to join New York working with law-enforcement officers, in the days after 130 val in Central Park, which asks Michael Carey, executive di- The New Year’s Eve festivi-
City Mayor Bill de Blasio in authorities to ensure security people were killed on Nov. 13 concertgoers to perform anti- rector of the Mayor’s Office of ties are slated to feature musi-
pressing the Waterford crystal at this year’s event. No spe- in terrorist attacks in Paris. poverty activism, such as sign- Citywide Event Coordination cal performances by country
button that starts the count- cific threats against the city The unit, which is expected to ing online petitions or email- and Management, said city of- singer Carrie Underwood, pop
down to 2016, organizers said have been deemed credible, grow to about 560 officers, is ing elected officials, to get ficials have worked success- singers Daya and Demi Lovato,
this weekend. police said Sunday. expected to be in full force by admission tickets. fully with Global Citizen to or- Latin boy band CNCO and rap-
Tim Tompkins, president of The NYPD has increased pa- the New Year’s Eve celebra- Global Citizen plans to use ganize the annual Central Park per Wiz Khalifa. British singer
the Times Square Alliance, a trols and beefed up its coun- tions in Times Square. the Times Square stage to pro- concerts and thought the head Jessie J is to sing John Len-
nonprofit that helps produce terterrorism resources “out of Since the 1990s, special mote a set of goals advanced of the group was a good non’s “Imagine” just before
the New Year’s Eve festivities, an abundance of caution” in guests have been invited to by the United Nations that in- choice to be the guest of the ball drops.
said organizers chose Mr. Ev- recent weeks following terror- join the mayor as part of the clude eliminating poverty, re- honor at this year’s New The Times Square Alliance
ans because of his organiza- ists attacks in Paris in Novem- symbolic pressing of a button ducing inequality and address- Year’s Eve event. expects 750,000 to 1 million
tion’s “commitment to making ber and San Bernardino, Calif., to begin the ball’s descent. ing climate change, said “They reflect this mayor’s attendees Thursday. As of Sun-
the world a better place and earlier this month, said Ste- Previous guests have included Andrew Kirk, a spokesman for vision of income inequality,” day, the National Weather Ser-
their message of inclusion,” phen Davis, a department Bill and Hillary Clinton, Mu- Global Citizen. said Mr. Carey, referring to vice was forecasting a cloudy
“It’s particularly appropri- spokesman. hammad Ali and Lady Gaga. At “It’s an opportunity for Global Citizen and the mayor’s night with a low of 36 degrees.
ate because this is a year Officials have pointed to the the 2011-12 celebration, Lady people to remember that they effort to combat inequality. —Derek Kravitz
where the world has felt more role of a new counterterrorism Gaga kissed then-Mayor Mi- can do something in 2016,” Mr. This year, the Times Square contributed to this article.
YOU
Photography by Craig LaCourt
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A18 | Monday, December 28, 2015 * * THE WALL STREET JOURNAL.
PROPERTY MONDAY
Goldmans Put Aside Differences to Strengthen Business
In 2002, Lloyd Goldman
realized that friction be-
tween him and his two older
sisters was holding back
their family’s real-estate
business.
At the time, the company
had all the appearances of
success. It
DYNASTIES owned
PETER scores of
GRANT properties
and was de-
veloper
Larry Silverstein’s partner in
MARK ABRAMSON FOR THE WALL STREET JOURNAL (2)

the rebuilding of the World
Trade Center.
But the three squabbled,
Mr. Goldman said in an in-
terview this month. He re-
called a four-hour meeting
where the siblings spent
more time bickering over
minor issues than talking
about the World Trade Cen-
ter.
The three came to a real-
ization, he said: “We all
agreed that we have a major
business here. We should not
be fighting about this stuff.” Lloyd Goldman, left; a photograph of his late father, real estate
Mr. Goldman, the nephew investor Irving Goldman, above. The family’s projects include
of New York real estate leg- the One in Jersey City and the World Trade Center site, below.
end Sol Goldman, took an
unusual step. He opted for
creating an outside board of
advisers that for more than
a decade has played a role in
the decision-making process
as the family business has
grown. Today, BLDG Manage-
ANDREW HINDERAKER FOR THE WALL STREET JOURNAL

ment controls thousands of
commercial properties in 35
states.
The board has given
“third-party validation” to
Mr. Goldman’s strategy. Oth-
erwise, he said, “No matter
how much I accomplish or
what mistakes I make, I’m
JESPER NORGAARD
still their little brother.”

Now, with the board’s
guidance, the Goldmans are
taking a major step into
ground-up development proj-
ects. Mr. Goldman said his
sisters were wary but have dynasties that have involved and his skills as a developer which he set about expand- there.” when someone graduates
become more comfortable lawsuits or complicated divi- and negotiator since his ing. He picked up bargains Mr. Goldman also invests college, we wouldn’t hire
with the risks. sions of assets. They didn’t childhood when he worked from government bailout with others like Mr. Chera them for five years,” Mr.
The family co-developed have to look far for an exam- for his uncle as well as his agencies and others as the and Jeffrey Feil. Messrs. Goldman said. “They should
a 36-story rental apartment ple of what not to do: In the father, Irving Goldman, who real-estate industry emerged Goldman and Feil, for exam- seek proficiency in their skill
tower in Jersey City, named late 1980s, after Sol Gold- was just as active as Sol from the recession of the ple, are among the group set or come here with a pro-
the One, that opened in June man died, his widow and Goldman, although not as early 1990s. that is investing more than fessional degree.”
and has leased more than their children waged a messy well known. At one point in Mr. Goldman’s biggest $100 million in an observa- The next generation is al-
95% of the units. Also in court fight over his estate. the 1960s, Sol Goldman, with deal was joining with devel- tion wheel planned for ready being groomed. Mr.
June, the Goldmans broke Lloyd Goldman has suc- longtime partner Alex oper Larry Silverstein and Staten Island. “We’re driving Goldman’s nephew, Forest
ground on a 43-story rental ceeded in avoiding a family DiLorenzo Jr., was one of the others to buy the 99-year piles,” Mr. Goldman said. Sonnenfeldt, 24, worked for
apartment tower at 222 East falling-out because “he biggest property owners in lease on the World Trade The family advisory the Goldmans’ partner on
44th St. “We’ve never devel- doesn’t have an ego,” said the city. Center in the summer of board today consists of its the Jersey City development.
oped like this historically,” Stanley Chera, an investor Mr. Goldman was given a 2001, just weeks before ter- chairman, Phil Laskawy, for- Mr. Goldman’s 27-year-old
said Mr. Goldman. who has worked with Mr. lot of responsibilities early. rorists destroyed the com- mer chief executive of Ernst son, Robert Goldman, gradu-
Ground-up development Goldman on more than 15 He said he can still find plex. Mr. Goldman has been & Young LLP; Robert Selsam, ated Yale University and is
has become more compelling deals over the years. “That forms in his firm’s files that an important ally of Mr. Sil- the former head of Boston now at Columbia Business
because building prices have was a big decision on his he worked on as an 11-year- verstein as he joined with Properties’ New York office; School’s graduate real estate
soared in the past few years. part, keeping his family to- old. “When I was 17 or 18, government agencies to re- Henry Cornell, a former program.
“The only catch to the whole gether and bringing in an they’d drop a project on me build the site. Today, their Goldman Sachs executive; Mr. Goldman said he and
thing is the construction outside board…. He kept his and say, ‘You’re a smart kid. group owns three of the of- and Susi Yu, a senior execu- his sisters still have “great
risk,” he said, adding, “It’s a family together by giving up You figure out how to do fice towers in the complex, tive with Forest City Ratner. debates,” but matters very
big catch.” some power.” this.’ ” which are at varying stages Besides smoothing out rarely have to be put to a
The story of how the Other family members de- After their father died in of development. business decisions, the board vote because they usually
Goldmans figured out how to clined to comment through a 1995, Mr. Goldman and his “He’s an excellent partner has helped the family deal find common ground. “You
manage their friction con- spokeswoman. sisters, Katja Goldman Son- in terms of him being a with such potentially thorny don’t need to fight with peo-
trasts sharply with the bat- The 57-year-old Mr. Gold- nenfeldt and Dorian Gold- stand-up guy,” said Mr. Sil- issues as how members of ple,” he said. “There’s a way
tles fought within some man also has been honing man Israelow, inherited a verstein in an interview. “If the next generation join the to find mutual ground and
other New York real estate his eye for real-estate value small real estate empire, anything is needed, he’s business. “We agreed that keep moving forward.”
velopment in Sunny Isles Beach,

What’s the Fla., with the New York attor-
ney general’s office so it can
Deal sell apartments in New York
state.
Turnberry Associates, owned
by siblings Jeffrey and Jackie
Soffer, is behind the 54-story
tower called the Turnberry
CONNECTICUT Ocean Club. Turnberry’s wide
holdings include the Fontaineb-
Old Pitney Bowes leau Miami Beach luxury hotel.
HQ Gets Overhaul The developer expects to
A real estate private-equity break ground on the Sunny Isles
firm is investing $30 million to project in the spring. The high-
renovate the former world rise building, set to open in
headquarters of Pitney Bowes 2018, will have 154 units, with
Inc. in Stamford, Conn. prices starting at $4 million, ac-
Building & Land Technology cording to Daniel Riordan, Turn-
said it aims to appeal to ten- berry’s president of residential
ants in the technology and cre- development.
BUILDING AND LAND TECHNOLOGY
ative sectors by overhauling the Turnberry has marketed its

1980s office building and giving luxury developments to interna-
it the name Silicon Harbor. I.M. tional buyers but now is focus-
Pei & Partners, now called Pei ing on attracting buyers from
Cobb Freed & Partners Archi- New York.
tects LLP, designed the “We haven’t done this in the
550,000-square-foot structure. past because the market didn’t
Building & Land is incorporat- dictate it,” Mr. Riordan said. “Be-
ing the site, purchased this cause the Northeast and U.S.
summer for $38.5 million, into Pitney Bowes Inc.’s former headquarters in Stamford, Conn., is undergoing a $30 million renovation. It will be named Silicon Harbor. economy is strong, with some
Harbor Point, the company’s ad- turbulence in the foreign mar-
jacent, mixed-use neighborhood The revamp will include up- transportation infrastructure Cynthia Rude, global chief oper- and employee growth, said Ms. kets, we thought it would be a
that includes apartments, of- grading the building’s mechani- projects under way in New York ating officer. Rude. good move.”
fices, restaurants and shops. cal systems, elevators and heat- City. Citizen Relations signed a 10- “Citizen is reconfiguring its The process of registering
Close to a waterfront park, ing, ventilation and air Citizen Relations, which also year lease for 12,487 square space, going from an office-cen- with the New York attorney
Silicon Harbor will be connected conditioning systems as well as has offices in California, will re- feet on the sixth floor, about tric floor plan to an open-space general took about six months,
to the rest of the neighborhood adding amenities such as a new locate to 600 Lexington Ave. 2,200 fewer square feet than environment with huddle rooms, according to Mr. Riordan. Regis-
by bike paths, trolley and road- cafeteria and a fitness center, from 415 Madison Ave. because the Madison Avenue location. high-tech conferencing capabili- tration allows Turnberry to
ways. the company said. the Metropolitan Transportation Asking rents for the full-floor ties and collaborative common reach out to real-estate agents,
“People aren’t looking for —Keiko Morris Authority needs the second- space were in the high $60s a areas,” she said. advertise the development and
suburban office parks,” said Ted floor space during construction square foot, according to David —Emily Nonko hold marketing events.
Ferrarone, chief operating officer MANHATTAN of an eight-track Long Island L. Hoffman Jr. of Cushman & According to a representative
of Harbor Point Development Rail Road train station under Wakefield, who with colleague of the New York attorney gen-
LLC, a subsidiary of Building &
Public Relations Firm Grand Central Terminal. The Judd McArthur of Cushman & NEW YORK eral’s office, it receives a small
Land. “That technology-focused, Makes Way for LIRR project is expected to cost more Wakefield represented Citizen
Florida Condo Plans number of out-of-state registra-
younger employee is looking to A public relations company than $10 billion. Relations. tions, approximately 10% of the
be in an urban setting where is moving its local headquar- The company wanted to stay Although the company is N.Y. Marketing Push total development plans re-
they can have whatever they ters, a move that will make close to Penn Station and Grand downsizing, the new open floor A Miami developer has regis- ceived.
want whenever they want it.” room for one of the largest Central Terminal, according to plan will allow for new business tered a luxury condominium de- —Emily Nonko
THE WALL STREET JOURNAL. * * Monday, December 28, 2015 | A19
ARTS & ENTERTAINMENT
Kicking Up Something Spectacular
The 2015 ‘Radio City Christmas Spectacular’ will end its seven-week run next weekend. The big draw of the 90-minute show are
the Rockettes, which every year perform ‘Parade of the Wooden Soldiers,’ above, choreographed by the group’s founder, Russell Markert.
A Rockette, one of 36 dancers in the troupe, adjusts her costume.
The Rockettes are famous for their synchronized high kicks. The dancers range in height from 5 feet 6 inches to 5 feet 10½ inches. The tap routine ‘Rag Dolls’ debuted in 1940 and returned in 2014.
TIMOTHY A. CLARY/AGENCE FRANCE-PRESSE/GETTY IMAGES (6)
The ‘Living Nativity’ number, with ‘Parade of the Wooden Soldiers,’ dates to the original 1933 show. Santa Claus, played by Charles Edward Hall, waits in the wings. His entrance is greeted with cheers.
SOUND ing the Zillion shortly before

his death in 2010. “Our bass is
tremendous, and I play dance
music, the sound that has en-
threshold for human hearing
generally stops at 20.
“It’s hard to hear—you more
feel the air moving,” said Dan
Another component de-
signed by Mr. Long was a bank
of tweeter arrays hung from
the ceiling, little silver speak-
nightlife scene since the early
’70s, when he helped turn an
underground dance movement
based in tiny lofts and clubs
because record companies just
wanted to make money off the
disco experience,” Mr. Siano
said.
Continued from page A15 ergy and life.” Prosseda, owner of Sound Con- ers that emphasize the high- into a global phenomenon. His specialty as a DJ, which
family-owned bumper-car Mr. Long’s system at Eldo- trol, an acoustical-consulting end sounds of drum cymbals The event follows another he developed at his own sto-
business then, was an audio rado, a rare relic from that era, firm and operator of sound for splashing and clasping shut. that Mr. Siano threw for his ried proto-disco club the Gal-
aficionado and devoted disco features special “J-horn” other Coney Island rides such “You don’t hear that any- 60th birthday this summer, for lery beginning in 1973, remains
fan, so he contracted Mr. Long speakers, known for the way as the Polar Express. more,” Mr. Siano said of the 600 revelers who danced—di- soaring R&B and soulful funk
to make the ride sound not they curve at the bottom, “They don’t bother coming hypnotic tszt-tszt-tszt effect rectly on the track with the records of a sort that seeded
just loud, but also discerning sending sound through a scoop down this low,” Mr. Siano said when the sound system is bumper cars pulled off to the disco from the start.
and highly refined. to rise up from the floor. The of most speakers these days, cranked up in full. side—to classics from a time Some songs—such as “Love
“Our sound is extremely speakers are esteemed among which tend toward tones mea- For the New Year’s party, before disco became vilified. Is the Message” by MFSB and
powerful yet very easy to lis- connoisseurs of bass for their suring 50 hertz and above. which is open to the public, “The term is often associ- “Armed and Extremely Danger-
ten to, it doesn’t hurt the ear,” unusual range of sounds, with “But there’s sound out there, Mr. Siano will resume a role he ated with a lot of cheesy re- ous” by First Choice—became
he told the carnival blog Amus- tones as low as 24 hertz. The and it makes a difference.” has played in the New York cords that came out en masse anthems both downtown and
at glitzy uptown clubs like Stu-
dio 54, where flair and show-
manship ruled.
Rochelle Fleming, founder
of First Choice and a solo
singer set to perform at the
party on New Year’s Eve, re-
membered a night at Studio 54
during disco’s heyday. In trib-
ute to an equestrian theme on
her group’s then-current album
sleeve, she said, a local radio
personality rode into the club
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL (2)
on a white horse.
“He came in after we per-
formed and it blew everybody’s
mind,” Ms. Fleming said.
For those like Gordon Lee,
owner of the bumper-car ride
since taking it over from the
Fitlin family, the setting for the
New Year’s party will likely
channel some of the spirit of
such storied party nights of
yore.
“The Eldorado at one point,”
The bumper-car space and control booth at Brooklyn’s Eldorado he said, “was the disco palace
Auto Skooter, which will host a New Year’s Eve celebration. of Coney Island.”
A20 | Monday, December 28, 2015 * * THE WALL STREET JOURNAL.
SPORTS
Patriots Open a Playoff Door for Jets
Postseason hopes
alive and well after
New England botches
coin toss in overtime
BY STU WOO
EAST RUTHERFORD, N.J. —

The last time the Jets pulled
off a victory that could com-
pare with the one they
notched on Sunday came after
the 2010 season,
NWE 20 when they upset
NYJ 26 the rival New
England Patriots
in the playoffs
under Rex Ryan’s rollickin’
leadership.
In the five years that fol-
lowed, the Jets became the
NFL’s most farcical team, birth-
ing the term “butt fumble,”
building a bridge to nowhere
with Geno Smith, and spiraling
into a 4-12 mess in Ryan’s final
season at the helm. Now,
thanks to a new, no-nonsense
coach, a journeyman quarter-
back, and an aging receiver
once considered a locker-room
thorn, the Jets are on the brink
of ending their half-decade
postseason absence.
Even sweeter, on Sunday
they appeared to reverse roles
with the normally unflappable
Patriots. After New England
coach Bill Belichick made the
baffling decision to kick off af-
ter winning the overtime coin
toss, the Jets drove 80 yards
in just 2:37 and scored to up-
set New England, 26-20, at
MetLife Stadium.
The win nudged the Jets’
record to 10-5. Thanks to the
Steelers’ surprising loss to the
Ravens on Sunday, they can
claim the AFC’s last wild-card Brandon Marshall and Eric Decker celebrate Marshall’s third-quarter touchdown in Sunday’s 26-20 win over the New England Patriots. The Jets improved to 10-5.
playoff spot next weekend
with either a win or a Pitts- but the referee correctly gave
burgh loss.
The Marshall Plan that choice to the Jets.
Since losing to the Houston Brandon Marshall set a new Jets “I was like, ‘What the
Texans on Nov. 22, the Jets record for receptions in a season. hell?’” said Marshall, who was
have played like a videogame RECEIVER YEAR REC on the sideline.
character with no lives left, Brandon Marshall* 2015 101 Said the typically curt
KATHY WILLENS/ASSOCIATED PRESS (TOP); PETER MORGAN/ASSOCIATED PRESS
winning five straight games Al Toon 1988 93 Belichick after the game: “I
against an escalating series of Laveranues Coles 2006 91 thought that was the best
enemies. On Sunday, it was Laveranues Coles 2002 89
thing to do.”
Belichick and quarterback Tom One possibility: If the Patri-
Keyshawn Johnson 1999 89
Brady. But next Sunday might ots had forced a three-and-
be the biggest of them all: Ryan, Richie Anderson 2000 88 out, they could have received a
now head coach of the 7-8 Buf- Al Toon 1986 85 punt near midfield that would
falo Bills, who will relish his op- Wayne Chrebet 1996 84 have set them up for the
portunity to ruin the postsea- Keyshawn Johnson 1998 83 game-winning field goal. But
son hopes of the team that fired Jerricho Cotchery 2007 82 on the second play of the Jets’
him 12 months ago. drive, Enunwa atoned for his
Jerricho Cotchery 2006 82
“For some reason, I knew it earlier drop by taking a short
was going to come down to Rob Moore 1994 78 pass up the left sideline for 48
this last game versus Rex. It’s Mickey Shuler 1985 76 yards. Fitzpatrick then lobbed
just fate,” said Jets linebacker Wayne Chrebet 1998 75 a pass to Eric Decker in the
Calvin Pace. “They’re not re- George Sauer 1967 75 right side of the end zone for
ally playing for a playoff spot, Eric Decker 2014 74 the game-winning score, send-
but I know Rex is going to Santana Moss 2003 74 ing the Jets sprinting onto the
have those guys ready to go field in celebration.
Al Toon 1991 74
and fired up.” The game-winner marked
Source: Football Reference *through Week 16
Even if they don’t reach the Patriots captain Matthew Slater appears confused after he chose to kick off before overtime. the eighth game in which
playoffs, the Jets might already Decker and Marshall both
have done enough in 2015 to half on Sunday, besides Fitz- over and, on a third-and-11, Jets kicker Randy Bullock pass clanked off the hands of caught touchdowns, a new NFL
render this season a success un- patrick’s 2-yard touchdown floated a pass that Marshall tacked on a 49-yard field goal receiver Quincy Enunwa at the record for teammates. Mar-
der their two new leaders, gen- pass to Marshall after the two- hauled in between two defend- early in the fourth, but the of- New England 20, costing the shall also passed Al Toon for
eral manager Mike Maccagnan minute warning that gave the ers for a 33-yard touchdown. fense sputtered from there. The Jets at least a shot at the game- the most receptions in a single
and head coach Todd Bowles. Jets a 10-3 halftime lead. The score gave the Jets a Jets’ defense held until the fi- winning field goal. season in Jets history.
The latter got his squad back The Patriots (12-3) began 17-3 third-quarter lead—one nal minutes, when Brady twice Before overtime, Belichick “The last five weeks,
into playoff contention after the third quarter by driving to they almost immediately gave converted on fourth down, in- instructed captain Matthew they’ve all been kind of do-or-
dressing them down following the New York 40, where Brady right back. After a Patriots cluding finding Gronkowski for Slater that the Patriots wanted die games for us, and so that’s
the Houston loss. The former lofted a pass to his All-Pro field goal, Fitzpatrick fumbled a 26-yard catch on fourth- to kick off should they win the kind of how we’ve approached
acquired the three big stars in tight end, Rob Gronkowski. But at his own 16-yard line on a and-9. Brady then threw to a coin toss. The Patriots won the each one,” Fitzpatrick said.
Sunday’s game: Fitzpatrick, re- the pass was behind hit by Jabaal Sheard. Line- wide-open James White to tie toss and Slater did as in- “We didn’t have much room
ceiver Brandon Marshall, and Gronkowski, and it sailed into backer Jamie Collins scooped the score at 20. structed, giving the Jets the for error and so we’ve got to
cornerback Darrelle Revis. the hands of Revis, who re- up the loose ball and ran into Fitzpatrick got the ball with ball. The only confusion was get the next one to get in and
Neither Fitzpatrick nor turned the interception to the the end zone to cut the Jets’ 1:55 left and led the Jets to mid- whether the Patriots also got that’s how we’ll view it. This is
Brady did much in the first New York 39. Fitzpatrick took lead to 17-13. field, but his deep third-down to choose which side to defend, a fun run.”
After a Season of Too Many Losses, Giants Stand to Gain in 2016

The Giants were eliminated from
the postseason on Saturday night
when the Washington Redskins beat
Turning the Crash Into Cash
the Philadelphia Eagles and took the Here is the expected 2016 NFL salary cap, the room the Giants
NFC East title no one seemed to currently have under that cap, as well as room they can claim by
want. The result rendered Sunday using unspent 2015 cap dollars and releasing various players.
night’s game against the Vikings
meaningless, and may even have been Expected 2016 NFL salary cap $150.0 million
the final blow in Tom Coughlin’s ten- Giants’ current cap space $37.4 million
ure as Giants coach. Giants’ unused 2015 cap space $11.4 million
But despite a fourth straight sea- Victor Cruz savings $6.1 million
$5.1 million
Take a Number
Jon Beason savings
William Beatty savings $4.2 million
Geoff Schwartz savings $3.0 million
son missing the playoffs, all is not Giants’ estimated cap space $67.2 million
hopeless. The Giants are in perfect for rookies and free agents
position to rebuild via free agency— Source: OverTheCap.com The Wall Street Journal.
just like their co-tenants at MetLife
Stadium, the Jets, did last off-sea-
son.
According to OverTheCap.com, the manager Jerry Reese can elect to use savings. That creates a staggering to- trols its playoff destiny heading into agents include Panthers cornerback
Giants will have $37.4 million in sal- that space in 2016, according to NFL tal of $67.2 million with which to re- Week 17 at Buffalo. Josh Norman (though Odell Beckham
ary-cap room in 2016, assuming the rules. That would create $48.8 million build the roster. Of course, some of that salary-cap Jr. may not be happy about it), Jets
NFL’s estimated $150 million limit to fill the many holes on both sides This past off-season, the Jets had room could be used to bring back defensive end Muhammad Wilkerson,
comes to fruition. Additionally, there of the ball. $52.3 million in cap space (including Pierre-Paul—though not likely near the Bears receiver Alshon Jeffery, Bucca-
is $11.4 million unspent from this year Now assume the release of injury- the $12.9 million they carried over franchise amount that, for him this neers running back Doug Martin and
due to the uncertain contract status plagued veterans Victor Cruz (WR), from 2014). Their new general man- season, was $14.8 million. Bills tackle Cordy Glenn—though they
of Jason Pierre-Paul, who finally re- Jon Beason (LB), William Beatty (OT) ager, Mike Maccagnan, used the More important, the Giants also may be kept off the market by their
turned to the team in November after and Geoff Schwartz (OG), resulting in bounty to turn a 4-12 team into one need good players on which to spend current teams with a franchise tag.
injuring his hand on July 4. General an additional $18.4 million in 2016 that currently sits at 10-5 and con- the money. Top unrestricted free —Michael Salfino
CHRIS PEDOTA/THE RECORD OF BERGEN COUNTY/ASSOCIATED PRESS;BRIAN BLANCO/ASSOCIATED PRESS

MEDIA & MARKETING B4 | WSJ.D B6 | CROSSWORD B6 | SMALL BUSINESS B7 | SPORTS B8
BUSINESS & TECH.

Bet on New Jet Stakes Rise for It’s Holiday Joy
Is $120 Million Harbor Pilots At Box Office
AVIATION | B3 PORTS | B3 MOVIES | B4
© 2015 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Monday, December 28, 2015 | B1
Unwanted Presents Pile Up GMUrgedtoMake

Goods accounting for
a quarter of Web sales
AirBagsStandard
are due to be returned BY GAUTHAM NAGESH safety technologies, while not
even providing air bags to oth-
this holiday season General Motors Co. is fac- ers, strikes us as a morally in-
ing calls to add air bags as defensible decision.”
BY SERENA NG standard equipment on its A GM spokesman said most
AND LAURA STEVENS popular compact cars in Mex- auto makers offer some mod-
ico, reflecting broader pres- els without air bags in Mexico
Christmas is over and peak sure on big auto makers to in- and Latin America. The com-
ROB HART FOR THE WALL STREET JOURNAL
selling season is just begin- clude basic safety equipment pany is considering adding air
ning for Michael Ringelsten. in their vehicles even when bags as standard equipment
Mr. Ringelsten runs a mas- governments don’t require it. on certain models and option
sive operation outside of Chi- Four American consumer- packages, he said.
cago in which he buys truck- advocacy groups, including Light-vehicle sales in Mex-
loads of returned Consumer Reports and Public ico have increased 19%
merchandise, sorts through Citizen, have sent a letter to through November, making it
the items and rapidly resells GM Chief Executive Mary among the fastest-growing
most of them over the Inter- Barra calling on the company emerging markets for autos.
net at bargain-bin prices. to make air bags a standard GM, which is No. 2 in sales
“It is crazy how many re- feature globally. At least one there after Nissan Motor Co.,
turns come in during the two Many returned goods are sent to third-party firms instead of the retailers that originally sold them. of those groups said the com- sells that country’s most pop-
to three months after Christ- pany hasn’t responded. ular passenger car, the Chev-
mas,” says the owner of Shore- Depot Inc. To handle the surge The underbelly of e-com- gretted buying. This holiday “Auto safety cannot only be rolet Aveo, but offers air bags
wood Liquidators Inc., a 91- in post-holiday returns, Mr. merce is a booming business season, goods with an original for citizens living in wealthy only as an option, which many
person business that operates Ringelsten, 38 years old, said in which little-known compa- retail value of $19.4 billion— countries,” the U.S. consumer buyers choose to go without.
two warehouses packed with all of his employees work Sat- nies collect, process and often nearly one-quarter of e-com- groups wrote in their letter to Latin America’s indepen-
returned merchandise from re- urdays and add an hour to resell piles of unwanted gifts, merce sales—are expected to GM’s Ms. Barra. “Yet GM’s dent New Car Assessment Pro-
tailers including Amazon.com their usual eight-hour daily flawed merchandise and other be returned, according to practice of providing some gram recently assigned the
Inc., Groupon Inc. and Home shifts for two months. items that shoppers simply re- Please see RETURNS page B7 consumers with the best Please see AIRBAGS page B2
Advertisements That Hit and Missed in 2015
YOUTUBE (2)
Arby’s ads featuring insults that comedian Jon Stewart, above left, lobbed at the fast-food chain on ‘The Daily Show’ in August generated buzz. Arby’s attributed some of its 12% same-stores sales
growth that month to the spots. Above right, a TV ad showed Seattle Seahawk Richard Sherman ordering Domino’s pizza via Twitter. The spot introduced the pizza emoji, which became popular.
BY SUZANNE VRANICA tool AdBlock Plus, up about 23% sode. (Fox owner 21st Century Fox companies managed to get their paid off for the fast-food chain.
from the same period a year ago, was until mid-2013 part of the same messages to stand out. The ads generated 70,000 mentions
Consumers have long bemoaned according to parent company Eyeo. company as Wall Street Journal Here are our choices for some of of Arby’s on social media during
the onslaught of advertising they Even TV watchers, who years ago owner News Corp.) the best and worst advertising of two days, and about 90% of the
see every day. But in 2015, market- turned to DVRs to help them skip Meanwhile, more publishers 2015: comments were positive, the com-
ers were ads, found new ways to make it even pushed so-called native ads, which pany said.
confronted easier to bypass commercials. TiVo, are designed to blend in with a THE BEST Arby’s had 12% same-stores
with anti-ad- for example, introduced Bolt, a new site’s editorial look. sales growth in August and attri-
vertising device that allows viewers to skip In a nod to the many people who Frenemies buted some of the sales lift to the
sentiment entire commercial breaks with the skip YouTube ads after the first five Marketer: Arby’s Restaurant buzz from the marketing effort.
that seemed push of a single button. seconds, Geico created what they Group Inc.
to skyrocket. The assault on the $183 billion called an “unskippable” pre-roll ad. Agency: Fallon Turning Lemons to Lemonade
Ad-block- U.S. ad business has forced market- In the first five seconds, a family The Pitch: Arby’s aired two ads Marketer: Unicef Sweden
ing software ers, media companies and publishers is sitting around a dining table as during Jon Stewart’s final episodes Agency: Edelman Deportivo
went main- to find new ways to make sure ads the mom says, “Don’t thank me, as host of “The Daily Show” in Au- The Pitch: Unicef circumvented
stream and helped consumers are seen. thank the savings” with the word gust. One spot featured a montage ad blockers by placing “unblock-
avoid some of the $60 billion Fox.com, for example, gave view- “Geico” flashing on the screen. A of the on-air insults that Mr. Stew- able ads” on the website of Swed-
worth of digital ads that appeared ers of “MasterChef Junior” the op- voice-over intones: “You can’t skip art had thrown at Arby’s, to the ish newspaper Dagens Nyheter. Us-
on the Web this year. tion of skipping 10 minutes of ads if this Geico ad because it’s already tune of “Thank You for Being a ers who visited the site with ad
In October, 13.2 million people in they agreed to watch one 60-second over.” Friend.” blocking enabled were greeted with
the U.S. used popular ad-blocking interactive ad at the start of the epi- Despite the roadblocks, some Feedback: Having thick skin Please see ADS page B4
New Outbreak Chills Chipotle’s Rebound FiveTech Predictions

BY JULIE JARGON
Chipotle Mexican Grill

Inc., battered by a series of
LLC. “If they say it’s OK to eat
there and you find out later
that it’s not, that’s bad.”
Chipotle co-Chief Execu-
For the Year Ahead
W
foodborne disease outbreaks, tive Steve Ells recently apolo- hen it comes to tailer Jet.com to sell you.
is a company stuck in market- gized on national television tech, I have been This coming year will be
ing limbo. and in newspaper ads and ex- known to diss entire when many winners and los-
The Denver-based restau- plained that the company is years. But I’m confident 2016 ers in startups are sorted to
rant operator is waiting for revamping its food-safety is going to be different. The their proper places. The true
the Centers for Disease Con- measures, including steps like year ahead unicorns and decacorns—
trol and Prevention to declare dicing, sanitizing and sealing won’t be a startups valued at more than
an end to a multistate E. coli certain produce in a central cake walk, $1 billion and $10 billion—
ROBERT GALBRAITH/REUTERS
outbreak before launching kitchen before shipping them but it will will vacuum up even more
an advertising and social-me- to restaurants, and expanding be wild and cash, while many other com-
dia campaign to woo back food-handling training for res- fun, in a panies will see their valua-
customers. That incident, taurant workers. way that tions get slashed.
which sickened 53 people in Ms. Gillott Bowe and others KEYWORDS tech has This isn’t a bad thing. In
nine states, along with others say Chipotle needs to do CHRISTOPHER struggled fact, it is a great thing: the
involving E. coli and norovi- something bolder to MIMS to be for markets at work. If there is a
rus, has slammed the chain’s The Mexican grill has been hit with foodborne disease outbreaks. start winning back consumers. some time. flaw in this system it is that
sales and its stock. “They need to paint a clear the market for shares in pre-
Efforts to emerge from its whose DNA fingerprint dif- Chipotle’s ability to start re- picture of what they’re do- Prediction 1: IPO startups is relatively il-
problems suffered a setback fered from that of the earlier building consumer trust in its ing,” Ms. Gillott Bowe said. There will be blood liquid and there is limited in-
last week when the CDC dis- cases, leading the CDC to treat brand, said marketing experts. “Something that would go If you think the so-far mi- formation available about the
closed five more E. coli cases the five as a separate out- “They’re in a weird limbo over well is if they made nor adjustment in the valua- true performance and poten-
in three additional states tied break. The source of contami- spot,” said Eden Gillott Bowe, their own video and popped tions of private tech compa- tial of these companies.
to Chipotle restaurants. The nation in both groups hasn’t president of Santa Monica, Ca- it up on YouTube showing nies has brought them in line If the analysts with the
CDC said the latest cases in- yet been identified. lif.-based crisis management just how safe their food pro- with reality, I have some hot unenviable task of seeing
volved an E. coli infection That reversal constrains firm Gillott Communications Please see TRUST page B2 pre-IPO shares in online re- Please see MIMS page B6
B2 | Monday, December 28, 2015 * *** THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS NEWS

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Abaxis ....................... A10
Adaptimmune
...................................A10
F
O
Optoro ......................... B7
P
Aerospace Deals Come Down to Wire
Facebook......................C6 BY DOUG CAMERON nium and other long-lead
Therapeutics ............. C3 AND ROBERT WALL parts for a later batch of the
Foothills Running Paramount Pictures....B4
Aerion..........................B3
.....................................B7
planes.
Pfizer.........................A10
Airbus Group...............B2 The aerospace and de- Commercial aerospace in-
G R fense industry is one of the vestors are also looking for a
Amazon.com...........C1,C2
General Motors...........B1 few sectors to consistently boost in sentiment after
Anglo American Renesas Electronics
throw up end-of-year sur- months of concerns about
Goldman Sachs Group .....................................B6
..................................... C6 prises as companies look to aircraft oversupply and weak
Australian Pacific Coal ..................................... C6 S meet or exceed prior com- emerging markets denting
Google..........................C2 mitments, and 2015 is no ex- record order backlogs.
..................................... C6 Samsung Group..........B6 ception. For Airbus and Boeing,
B I Shorewood Liquidators The tussle between Air- the annual battle to secure
Bank of America.........C6 Infineon Technologies .....................................B1 bus Group SE the most orders is already
.....................................B6 THE WEEK and Boeing Co. over, with the European
Bay City Capital..........C3 Sime Darby..................C3
AHEAD has a history plane maker comfortably
Boeing....................B2,B3 J Spike Aerospace.........B3 of making last- ahead after garnering more
B-Stock Solutions.......B7 J.P. Morgan Chase......C6 T minute aircraft than 1,000.
orders, with the European However, Boeing on
C Juno Therapeutics Telsey Advisory Group plane maker last year pulling Christmas Eve said it booked
China Telecom ............ A7 ..................................... C3 .....................................B2 out deals for more than 450 orders for 166 commercial
China Unicom..............A7 M Theranos..................... A1 jets in December alone to jets in the past week, taking
Treasury Wine Estates
overtake its rival, an unprec- its year-to-date total to 743
Chipotle Mexican Grill MedVenture Associates edented haul seldom seen and within a whisker of its
.....................................B1 ...................................A10 .....................................B3 even at air shows. target of matching deals for
Citigroup.................C1,C6 Merus Labs 21st Century Fox........B4 Overseas defense deals new aircraft with planned
City Sports..................B7 International.............C3 U also often come down to the deliveries this year, a bench-
wire, and landmark contracts mark investors had believed
CMA CGM....................B3 N UBS Group...................C6 signed in the final days of was out of reach just weeks
Consolidated Pastoral the year can count for more earlier.
Netflix..........................C2 V
..................................... C3 than just bragging rights. For Airbus, it is deliveries
Nike.............................B7 Valeant Pharmaceuticals Some countries’ defense that remain most closely
D Nissan Motor..............B1 International.............B6 budgets also reset at year- watched in the final weeks of
Draper Fisher Jurvetson Novartis .................... A10 Viacom.........................B4 end, and the lack of a final the year. Last year it left it
signature can push back to Dec. 22 to deliver the first
INDEX TO PEOPLE closing by another 12

months.
“It’s fairly common to see
A350 long-haul jet after
launch customer Qatar Air-
ways insisted on some last-
A Draper, Tim...............A10 Merluzeau, Michel......B3 these things come in just in minute changes.
Aboulafia, Richard......B3 E Moore, Tobin...............B7 time to ring in the new Pending this year are the
year, suggesting that Santa first deliveries of A320neo
B Mueller, Daniel ........... B3
Ells, Steve...................B1 does in fact have a list of jetliners, an upgrade to its
Endo, Takao.................B6 N Naughty & Nice defense popular single-aisle plane.
Barra, Mary.................B1
contractors,” said Rob Stal- Airbus had promised to hand
Bass, Robert ............... B3 F Nichols, Doug..............B3
PIERRE-PAUL PARISEAU
lard, a longtime sector ana- over the first couple by year-
Bloomberg, Michael....C6 Fabian, Matt................C1 P lyst at RBC Capital. end, with Deutsche Luf-
Boies, David..............A10 Forese, Jamie..............C1 Padilla, Alejandro García
Big-spending Middle East thansa AG poised to get the
Brodziak, Stephan ...... B2
nations have become in- first. Indian budget airline
Furas, Alejandro..........B2 ..................................... C1 creasingly important for U.S. Indigo last week said its first
C H Pavlik, Robert..............C2 contractors in countering wouldn’t arrive by the
Callahan, Don..............C6 Pearson, Michael........B6 flat or declining Pentagon in- promised Dec. 30 delivery
Haque, Nooman .......... C3 vestment spending, and tic of securing big deals investor conference in early date, owing to “industrial is-
Campbell-White, Poddar, Tushar............C5
Holmes, Elizabeth......A1 overseas deals tend to be from Saudi Arabia and the December. sues” it didn’t specify.
Annette...................A10 Pugsley, Ray ............... B7
J concentrated in the fourth Pentagon. The planned sale is being Airbus, which last year
Campion, Andrew quarter. Saudi Arabia plans to brokered by the Pentagon, shipped 629 planes and had
R
.....................................B7 Jacob, Mike.................B3 Last year, Raytheon Co. fi- spend $11.25 billion—spread and Lockheed said last promised a larger number
Ricci, Kenn .................. B3 nally landed a $2.4 billion out over a number of con- week that it remained this year, had more than 73
Carlson, Chad..............C2 Jethmalani, Arun........C5
Jones, Bettie R...........A3 S order from Qatar for its Pa- tracts—buying four of Lock- hopeful the two sides can to hand over this month to
Carnot, Lionel..............C3
triot missile defense system heed’s littoral combat ships reach an agreement. The meet that objective. Airbus
Corbat, Michael...........C1 M Shelton, Brian.............B7 on Dec. 22. In 2011, the U.S. to replace its eastern fleet company is also close to last December delivered 75
D Marton, Simon............B3
Spiotto, James............C2 signed a $29.4 billion deal in what would be one of the completing a multiyear deal planes.
T on Dec. 24 in Riyadh to sell largest-ever overseas de- that could be worth almost Airbus Chief Executive
Damodaran, Aswath Marxuach, Sergio........C2 84 new Boeing-made F-15 fense orders. The sale $6 billion to supply another Tom Enders earlier this
..................................... C5 McGuire, Ray...............C6 Tsurumaru, Tetsuya....B6 fighters to Saudi Arabia, an- would help counter the Pen- 83 of its C-130J military month said one target that
nouncing it five days later. tagon’s plan to reduce its transport aircraft to the probably won’t be met is de-
Within 24 hours, Lockheed own planned purchase of a U.S. Air Force. livering 15 A350 long-range
TRUST would fall up to 11%. Shares

have fallen nearly 23% since
news of the first outbreak was
reported.
Martin Corp. secured a $2
billion deal from the United
Arab Emirates for its THAAD
missile defense system.
version of the vessel to 40
from 52.
“I think that’s more immi-
nent today as we sit here
A planned deal for the
next batch of F-35 combat
jets had also been expected
to close this year, but the
jets. One handover is ex-
pected to slip into 2016, he
said, because a cabin-equip-
ment supplier is late deliver-
Continued from the prior page “Given the level of negative The focus is again on than it’s been at any point company now expects it to ing components.
cessing is.” publicity Chipotle has suffered Lockheed this year, and the up to this point in time,” slip into early 2016, though
“Right now, our highest pri- as a result of its E. coli inci- world’s largest defense Lockheed Chief Financial Of- last week it did close a $1.2 The Week Ahead looks at
ority is putting in place all dents since late October, we contractor remains optimis- ficer Bruce Tanner said at an billion contract to buy tita- coming corporate events.
facets of our enhanced food- believe many consumers will
safety plan,” a Chipotle likely take a wait-and-see ap-
spokesman said. That plan
flows from a complete reas-
sessment of Chipotle’s food
safety and handling, “from the
proach before returning to
Chipotle for their next meal,”
Bob Derrington, a restaurant
analyst at brokerage
AIRBAGS has said the company will use
its focus on safety technology
to race forward in developing
self-driving vehicles and gain-
the standards in developed
markets such as the U.S.
GM’s best-selling Aveo is
the centerpiece of its lineup in
in advance of stricter govern-
ment standards being phased
in between 2017 and 2020.
In a recent interview, Ms.
farms that produce the ingre- firm Telsey Advisory Group, Continued from the prior page ing market share in certain Mexico, with the Detroit auto Barra said GM aims to use
dients we use to the restau- said in a research note last Aveo zero stars in a crash test, emerging markets where it is maker selling more than safety technology to set itself
rants where we serve our cus- Thursday. calling the vehicle “unstable” underrepresented. Adding air 66,000 of the cars there this apart in India, where it cur-
tomers,” he said. Some experts say Chi- with “a high risk of life threat- bags as standard equipment in year. The Aveo accounts for rently is a niche player.
Twenty people have been potle should look to Johnson ening injuries.” Mexico could be a relatively about 40% of GM’s Mexico The GM spokesman said the
hospitalized among the Chi- & Johnson’s handling of the Ms. Barra has been under cheap step in that direction. sales and 8.5% of the entire car maker is committing to in-
potle-linked E. coli cases. No 1982 Tylenol-tampering inci- pressure to clean up GM’s Independent health and Mexican passenger-car market, vesting $5 billion to develop a
deaths have been reported. dent. It quickly recalled every safety image after a crisis in- safety organizations put the according to WardsAuto.com. new vehicle for emerging mar-
Restaurant companies in bottle of Tylenol, only re- volving faulty ignition switches cost of adding a pair of air Pressure to make air bags kets, including India and Mex-
the past have usually recov- turning it to store shelves two was linked to dozens of deaths bags at between $100 and standard isn’t limited to GM ico, that has standard front
ered pretty quickly after food- months later, after changing and injuries in the U.S. The cri- $150, and many auto makers in or the Mexican market. Many and side air bags, but that car
borne disease outbreaks—one the packaging to be tamper- sis clouded the early days of other markets have found that companies, including Nissan, isn’t due until the 2019 model
exception being Jack in the resistant. her tenure and cost the auto car buyers, who have an in- have been criticized for not of- year.
Box Inc., which nearly went Carin Warner, president of maker billions of dollars in creasing choice of vehicles, fering air bags in India, where While Latin NCAP Secretary
bankrupt after E. coli-contami- Massachusetts-based market- penalties and other damages. generally welcome the devices. safety regulations are lacking. General Alejandro Furas said
nated hamburgers killed four ing and public-relations firm Praised by the Justice De- Like Mexico, many Latin But the biggest sellers in In- zero-star vehicle ratings are
children in 1993 and sickened Warner Communications, said partment and others for tak- American nations don’t per- dia, which is about three times common in Latin America be-
600. Chipotle should close all of its ing swift action in the igni- form their own crash tests or the size of the Mexico market, cause of a lack of government
nearly 2,000 restaurants for a tion-switch case, Ms. Barra have safety rules that mirror have begun adding the devices oversight, he singled out GM
23%
week in a symbolic gesture to for delivering consistently
show customers that it is do- poor results since the group
ing everything it can, and then began testing cars in 2010.
Percentage drop of Chipotle “open the doors and welcome “Chevrolet has consistently
shares since news of the first them back.” performed badly in our tests
outbreak was reported. “They can’t control what over the last five years in high
the CDC does and when they selling models,” he said.
do it,” Ms. Warner said. Chi- Latin NCAP, which tests the
In December 2006, reports potle also should provide version of a car model with
began to surface of people be- continuous updates on the the most basic safety equip-
coming ill with E. coli that progress it is making to re- ment available, ranks GM be-
health authorities linked to vamp its food safety proto- low all other auto makers on
Yum Brands Inc.’s Taco Bell cols, she said. “They have to safety except for some Chinese
chain. More than 70 people take action.” brands.
ended up getting sick. No one Chipotle temporar- GM installs air bags in ev-
died. Health authorities ini- ily closed all 43 restaurants in ery Aveo and other vehicles
tially suspected green onions Seattle and Portland, Ore., af- exported to the U.S. and other
as the cause, but eventually ter the first E. coli cases in the markets that require them, ac-
pinpointed shredded lettuce. outbreak there, even though cording to Stephan Brodziak, a
Same-store sales at Taco Bell only 11 restaurants in the area vehicle-safety expert at Poder
fell 5% in the fourth quarter of were implicated. The company del Consumidor, a consumer-
2006, but recovered soon af- tested more than 3,000 sam- advocacy group based in Mex-
ter. ples of food, none of which ico City.
A decade later, though, so- found E. coli, and fully re- About 80% of Mexican-
cial media helps spread bad stocked the restaurants before made light vehicles are ex-
news more quickly—and keep reopening them. It also tem- ported, mostly to the U.S. In-
the commentary going. porarily closed and sanitized a stalling two air bags in a
The negative publicity and restaurant in Boston in De- vehicle costs manufacturers
ALEXANDER ZEMLIANICHENKO JR./BLOOMBERG
the lack of a resolution led cember after it was hit by no- about $100, Mr. Brodziak said.
some Wall Street analysts last rovirus. Mr. Furas said other manu-
week to lower their sales and Chipotle said none of the facturers have added air bags
earnings estimates for Chi- ingredients that are in res- as standard equipment after
potle, saying the impact is taurants now were there a failing Latin NCAP’s crash test.
likely to affect sales well into month ago, when the latest E. He pointed to Nissan, which
the new year. Earlier this coli illnesses occurred. stopped offering its Tiida and
month, Chipotle said it ex- “While there was benefit to Sentra sedans without air bags
pects fourth-quarter earnings closing the restaurants in in Mexico after both models
per share of between $2.45 Washington and Oregon at received zero stars from the
and $2.85—sharply below the that time, there is not that organization.
$4.06 analysts expected—and same kind of benefit today,” —Dudley Althaus
projected same-store sales the spokesman said. In Mexico, General Motors offers air bags on its best-selling Chevrolet Aveo only as an option. contributed to this article.
THE WALL STREET JOURNAL. * * * * Monday, December 28, 2015 | B3
BUSINESS NEWS
Can Supersonic Jets Find Business Buyers?

Aerion is lining up business-jet routes such as
Faster By Design from London to New York or
customers for jet that A supersonic business jet could save more than two hours on some of the most heavily-traveled routes. Dubai, or between the Persian
can cross the Atlantic Gulf city and Chinese cities.
While the AS2 would cost 35%
in some 4½ hours Average time for commercial flights Aerion AS2 Conventional business jet
more to operate than a con-
Los Angeles-Sydney ventional jet, potential clients
BY DOUG CAMERON aren’t price sensitive.
AND ROBERT WALL San Francisco-Tokyo Aerodynamic laws require
that supersonic planes be long
São Paulo-New York
Just how valuable is two and thin, and the existing AS2
hours and change to hurried Dubai-London
is 170-feet long and has a max-
corporate executives or the ul- imum takeoff weight of
trarich? Aerospace executive Singapore-Dubai 121,000 pounds, limiting its
Doug Nichols reckons the an- use at popular close-in air-
swer could be pushing $120 London-New York ports such as Teterboro in
million. New Jersey, a favorite gateway
The former Boeing Co. ex- 0 3 6 9 12 15 for Wall Street’s highfliers.
ecutive spent seven years de- FLIGHT TIME IN HOURS Mr. Nichols said that de-
veloping a supersonic business Note: Assumes conventional speed up to Mach 0.95 and typical routings. spite such limitations and the
jet that aims to fill the void Sources: Aerion; airlines (scheduled flights) THE WALL STREET JOURNAL. challenge of sonic booms, it
created when the Concorde would be a viable addition for
quit flying in 2003. He is tar- customers even for transconti-
geting those who absolutely nental U.S. travel by maximiz-
need to fly between London ing flying at high subsonic
and New York in 4½ hours speeds.
rather than seven. Aerion isn’t alone. Boston-
Aerion Corp., where Mr. based Spike Aerospace Inc.
Nichols is chief executive, has has been touting its proposed
the most advanced of several S-512 jet at trade shows. The
similar projects. It recently se- $100 million jet could be ready
cured orders for its planned by 2022, said Chief Executive
12-passenger AS2 jet. For the Vik Kachoria, with a top cruis-
$120 million price, a buyer can ing speed of 1.6 times the
go 4,750 nautical miles at up speed of sound and a range of
to 1.5 times the speed of around 5,580 nautical miles.
sound. Broadening the customer
Before it can achieve its base by opening more markets
goals of first flight in 2021 and would help. The market for su-
service two years later, Aerion personic business jets is likely
needs to overcome long-held between 300 and 350 aircraft
skepticism among business-jet over between 15 and 20 years,
financiers and plane makers estimates Michel Merluzeau,
about the viability of super- vice president for aerospace
sonic jets and convince pro- strategy at researcher Frost &
spective buyers and regulators Sullivan.
of their merits. Mr. Nichols, who forecast a
Aerion estimates the AS2 market of 600 planes over two
will cost $4 billion to develop, decades, is scouting for a pro-
produce and certify, requiring AERION
duction site in the U.S. For
new financing after it dropped now, he is relying on Mr. Bass
a plan to license its technology for funds, much as a new gen-
to another plane maker. Its A mock-up of the Aerion AS2 jet interior shown to prospective customers. The supersonic jet comes with a $120 million price tag. eration of space rockets have
timeline to first service also is been funded by Elon Musk at
so aggressive, it would chal- not necessarily the fastest aire Robert Bass, an aerospace ing the supersonic market, but for 20 of the planes, albeit Space Exploration Technolo-
lenge even more experienced route,” said Mr. Nichols of the enthusiast who plowed funds neither is expected to try to with refundable deposits. gies Corp., known as SpaceX,
manufacturers. flight plans the AS2 would from his Oak Hill investment introduce models for years. “The aircraft is very mis- and Amazon.com founder Jeff
The biggest hurdle remains have to take to skirt the U.S. firm into the venture. Its first Aerion’s rivals remain skepti- sion specific,” said Kenn Ricci, Bezos.
a ban on commercial jets fly- and Canadian coasts and link concept plane was launched in cal of the supersonic market, who as chairman of Flexjet has “[Bass] funding may have
ing at supersonic speeds over London and New York while 2007 and claimed 50 orders, which they said was limited to ordered dozens of conven- been a godsend in getting the
the continental U.S. Other shaving 2½ hours over a con- but was canceled two years trans-Atlantic crossing. “A tional business jets from Gulf- program going,” said Richard
countries also require ultrafast ventional business jet flying a later as the financial crisis business jet in that space stream, Bombardier Inc. and Aboulafia at aerospace consul-
planes to spend as much time more direct route at close to crushed sales of new business doesn’t make sense,” said an Embraer SA. tant Teal Group, but building,
as possible over the ocean to the speed of sound. jets, a downturn the industry executive at one plane maker. Mr. Ricci said Flexjet spent testing and certifying the jet
avoid the distinctive boom Aerion has followed a simi- is still trying to escape. Still, the Aerion AS2 last a year studying the AS2 as an will cost much more.
when they exceed the speed of lar, deviated path. The closely Dassault Aviation SA and month secured its first or- add-on to its evolving fleet, “That’s many billions that
sound. held company was created in the Gulfstream unit of General ders, with fractional jet spe- eyeing well-heeled and time- have to come from someone
“The straightest route is 2002 by private-equity billion- Dynamics Corp. are research- cialist Flexjet LLC signing up poor passengers on popular else,” he said.
Stakes Are Higher for Harbor Pilots WinemakerFocusesonU.S.

As the Size of Vessels Increases BY ROBB M. STEWART such as magazines and bill-
boards. It launched in the U.S.
takeover approaches, including
one from private-equity giant
BY ERICA E. PHILLIPS MELBOURNE, Australia— in late October and will run KKR & Co. The company bet
Treasury Wine Estates Ltd. is through the holiday season, instead on a turnaround strat-
VALLEJO, Calif.—Inside a making another big run at the and it is set to roll out across egy proposed by Chief Execu-
simulation chamber, Kip Carl- U.S. market, after overly rosy Asia next year. tive Michael Clarke, who was
son is attempting to turn estimates about demand there The U.S. market is the lead- hired in March 2014.
around a container ship longer a few years ago led the Aus- ing wine consumer in the Mr. Clarke has focused
than the Empire State Building tralian wine producer to fa- world. Americans accounted Treasury on 15 brands out of a
within the narrow confines of mously dump thousands of for 15% of the $223.27 billion portfolio of roughly 80.
one of Oakland’s port channels. gallons of unsold inventory. in reds, whites and roses con- The campaign emphasizes
It is a tight squeeze. Mr. Now Treasury is focusing sumed last year, according to several of Beringer’s pricier
Carlson has roughly 50 feet to on pricier wines in the $10 to Euromonitor. vintages such as its $160-a-
BLOOMBERG NEWS
maneuver on either end of the $100-plus range a bottle, Some observers are skeptical. bottle Private Reserve Caber-
ship, which rises so high out rather than popular but “Beringer is fundamentally net Sauvignon.
of the water that he can’t see cheaper wines such as its $6 a a commercial, mass-market In the series, dubbed “Bet-
the vessel’s sides, or two sim- bottle White Zinfandel. Trea- brand,” said Daniel Mueller, an ter Beckons,” ad company J.
ulated tugboats assisting with sury is the world’s eighth-larg- analyst at investment-research Walter Thompson Co. teamed
the turn. Relying on his view A pilot boat races to pick up a port captain in Los Angeles. est wine producer by volume, firm Morningstar. While in- the winemaker with Murad
of the channel as well as maps according to data provider Eu- vesting in the label is positive, Osmann, a Russian photogra-
and measurements displayed have a few feet to maneuver in A spokeswoman for the U.S. romonitor International. it will be a “long slog” build- pher with 3.7 million Insta-
on screens spanning the some port channels; stacked- Coast Guard, which tracks ma- The wine producer has ing up its image, he said. gram followers, for an initial
bridge, he gives orders to the up megaships come within rine accidents, said such inci- also ditched marketing sta- Beringer, best known for its six photographs. Mr. Osmann’s
ship’s crew. After half an hour, inches of scraping the bottom dents tend to be more preva- ples, such as close-ups of mass-market offerings, suffers photographs feature his wife,
the ship is facing back toward of the Bayonne Bridge, which lent in harbors than at sea bottles against stately vine- from a lingering hangover in Nataly Osmann, in front of
the San Francisco Bay and the connects New Jersey and New because of the confined yard backdrops, instead the U.S. after the company in such scenes as the New York
simulator powers down. York, on their way into New- spaces. spending millions of dollars 2013 was forced to destroy City skyline.
Mr. Carlson and his team ark’s terminals. An accident Earlier this month, a bar pi- on a campaign for its thousands of gallons of wine “With digital, you know
were practicing ahead of the could cause hundreds of mil- lot had just ceded navigation Beringer brand featuring that had passed its drink-by immediately if people are en-
arrival of the Benjamin Frank- lions of dollars in damage to a to a departing container ship’s postcard-style images date, after overestimating de- gaged,” said Simon Marton,
lin, a container ship owned by ship and its cargo, or trigger captain and was disembarking launched first on Instagram. mand for its lower-priced Treasury’s chief marketing
an epic port-traffic jam. from the vessel outside the The Instagram-led cam- wines. That cost it about 150 officer. The first photo gar-
The San Francisco Bar Pilots San Francisco Bay when a paign is Beringer’s first major million Australian dollars, or nered 200,000 “likes” on Mr.
‘As the ships get earned more than $450,000 in swell hit the ship, jostling the U.S. ad campaign in five years, roughly US$109 million. Osmann’s Instagram feed in
bigger and bigger, net income last year, paid from cargo and sending a dozen elevating social media along- The Australian wine pro- its first two weeks, said Mr.
an average of $4,700 in fees containers into the water. side traditional advertising ducer in 2014 fended off two Marton.
the responsibility is from each ship. This year, the pi- With larger ships, the in-
on us,’ a pilot says. lots lobbied California’s state creased surface area magnifies
Legislature to be able to in- the effects of wind in the bay,
crease rates, but the bill was op- making the vessels difficult to
French shipping line CMA posed by shippers and carriers steer. Two pilots are required
CGM SA. The 1,306-foot-long and it stalled in the state Senate. to navigate ships longer than
ship, capable of carrying about The pilots’ fees are based 1,150 feet under the Golden
18,000 20-foot containers, is on vessel tonnage, so as ships Gate Bridge, through the bay
the largest ever to call on a get larger pilots are earning and into Oakland’s port.
U.S. port, with scheduled stops more, explained Mike Jacob, To date, the San Francisco
in Los Angeles on Dec. 26 and general counsel for the Pacific Bar Pilots have brought ships
Oakland on Thursday. Merchant Shippers Associa- as long as 1,204-feet into berth,
As a harbor pilot—or bar pi- tion, which represents the pay- but to get ships of 1,300 feet or
lot, as they are known in San ers. “We have absolutely no more they’re starting with this
Francisco—Mr. Carlson boards problem paying them more for simulation. “As the ships get
a ship to guide it through the larger ships,” because there is bigger and bigger, the respon-
final miles at the end of its of- greater skill needed and more sibility is on us,” said George
ten globe-spanning journey, a risk associated with moving Livingstone, a longtime bar pi-
job that has become more chal- those ships through the port, lot. “And that burden goes up.”
lenging as ships have gotten he said. “The question is
TREASURY WINE ESTATES LTD
bigger. Many container ships should they get paid at an ONLINE

sailing these days are trans- even higher rate than they do.”
porting twice as much cargo as The San Francisco Bay has Logistics Report
the largest vessels 10 years
ago, reflecting swelling global
trade volumes and shippers’
some of the most difficult nav-
igational conditions of any
U.S. port, including thick fog,
WSJ
.COM
offers news and
analysis on
logistics and
demands to drive down costs. tidal currents and multiple supply-chain
The biggest vessels only bridges, harbor pilots say. issues, at WSJ.com/Logistics. An image from the ‘Better Beckons’ campaign for Beringer, its first major U.S. ad campaign in five years.
B4 | Monday, December 28, 2015 THE WALL STREET JOURNAL.
MEDIA & MARKETING

CMO Today
How Food52 Added photos as part of their ad pack-
Instagram Followers ages. The publisher doesn’t dis-
close revenue, but Ms. Hesser
A cooking site managed to said that its growing Instagram
quadruple its Instagram follow- presence is helping to attract
ers in less than a year with new advertisers. Ad revenue is
chocolate chip cookie recipes and expected to increased 149% this
cocktail how-to videos. year.
But more important, its suc- —Mike Shields
cess on the mobile photo-shar-
ing app opened up a new Colgate Plans Debut
stream of advertising revenue, In Super Bowl Lineup
and provided some valuable les- When Colgate makes its de-
sons for other publishers. but as a Super Bowl advertiser
Food52 has seen its website in February’s big game, it won’t
hover at around three million be using its 30 seconds of air-
unique users a month over the time to promote its line of
past year, according to com- toothpastes and toothbrushes.
Score. While that is a sizable au- Instead, the oral-care prod-
COURTESY TWENTIETH CENTURY FOX

dience, it isn’t exactly in the ter- ucts brand’s Super Bowl spot
ritory of BuzzFeed, which claims “Save Water” aims to remind
200 million unique global visi- consumers to turn off the tap
tors. But when it comes to In- when brushing their teeth.
stagram, Food52 reached one “It is an unusual type of mes-
million Instagram followers in saging, it isn’t really about a
November, up from roughly product or new news on a prod-
250,000 followers in January. uct,” said Scott Campbell, gen-
BuzzFeed has 1.3 million follow- eral manager for integrated mar-
ers, by comparison. keting communications, North Among the movies that enjoyed healthy box-office sales in the wake of ‘Star Wars’ were ‘Joy,’ starring Jennifer Lawrence.
According to Food52 co- America at Colgate-Palmolive. “It
‘Star Wars’ Boosts Other Movies

founder Amanda Hesser, the is a message about our consum-
site, which launched in 2009 ers and the use of our product
with investment from the likes that we think is interesting and
of Scripps Networks Interac- different.”
tive, hasn't used any paid adver- The spot, created by Y&R BY BEN FRITZ “Daddy’s Home,” a Will Ferrell-
tising to build up its Instagram Peru, shows a man brushing his Mark Wahlberg comedy co-fi-
footprint. Instead, the company teeth. As he leaves the tap run- Call it Hollywood’s Christ-
Estimated Box-Office Figures, Through nanced by Paramount and Red
recognized last year that it had ning, hands reach under the fau- mas miracle: A weekend on Sunday Granite Pictures, proved the
a budding community of fans on cet to fill up a cup, wash a dirty which some feared the success SALES, IN MILLIONS strongest “Star Wars” alterna-
the Facebook-owned photo plat- fruit and grab a drink of water of “Star Wars” would smother tive, buoyed by its status as the
FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE
form and decided to lean in. to signify how valuable the wa- all other releases instead re- only family-friendly comedy. It
For Food52, Instagram is now ter running is. Colgate will run a sulted in an abundance of full 1. Star Wars: The Disney $153.5 $544.6 -38% opened to $38.8 million.
“one of the most sought after version of the ad during the Su- stockings. Force Awakens “Joy,” starring Jennifer
campaign elements” for adver- per Bowl that will include a new Walt Disney Co.’s “Star 2. Daddy’s Home Paramount $38.8 $38.8 -- Lawrence and directed by Da-
tisers, said Ms. Hesser. Unlike campaign hashtag #EveryDrop- Wars: The Force Awakens” led vid O. Russell of “American
many publishers, Food52’s top Counts. On average, Americans the box office with a tremen- 3. Joy Twentieth $17.5 $17.5 -- Hustle” fame, overcame mixed
editorial staff produces spon- waste four gallons of water a dous $153.5 million, according Century Fox reviews to start its box-office
sored content for paying adver- day by running the tap while to studio estimates. But sev- 4. Sisters Universal $13.9 $37.1 0% run with a healthy $17.5 mil-
tisers, and many brands are brushing their teeth. eral other movies enjoyed 5. Alvin and the Twentieth $12.7 $39.4 -11 lion. Fox co-financed the
starting to ask for Instagram —Nathalie Tadena healthy openings in its wake, Chipmunks: The Century Fox movie, about the inventor of
including the comedies Road Chip the Miracle Mop, with An-
“Daddy’s Home” from Viacom napurna Pictures.
*Friday, Saturday and Sunday Source: Rentrak
Inc.’s Paramount Pictures and Sony Pictures Entertain-
“Joy” from 21st Century Fox’s ment’s Will Smith drama “Con-
Twentieth Century Fox. Friday and “Avatar” was on its release “Avatar,” is now firmly cussion,” about football-related
Rather than stealing atten- second weekend in theaters. in “The Force Awakens’” brain damage, had a decent
tion from other releases, it ap- The seventh “Star Wars” sights. That movie grossed opening of $11 million despite
pears “The Force Awakens” broke record after record fol- $2.79 billion globally, which its somber subject matter.
got more people interested in lowing its all-time high open- remains reachable for the new All of those movies are
going to the multiplex, or going, including Hollywood’s big- “Star Wars” but still not a counting on the fact that many
ing back for a different option. gest ever Monday, Tuesday, sure thing. Whether it hits people are off work and school
“I am a big believer that Christmas Day, and second that mark will depend on large in the next week to power
what generates box office is weekend in theaters, as well as part how the movie performs them to healthy box-office
people going to movies and the shortest number of days to in China, where it opens on runs driven by positive word-
‘Star Wars’ has gotten a giant gross more than $1 billion Jan. 9—and the science-fiction of-mouth.
infusion of people into the- world-wide. “The Force Awak- saga isn’t too well-known. The only Christmas flop
aters,” said Paramount Pic- ens” has now sold $1.09 billion In most other foreign coun- was a remake of the cult ac-
tures Vice Chairman Rob of tickets globally, making the tries, however, international tion classic “Point Break.” Re-
DANIEL ACKER/BLOOMBERG
Moore. $200 million-plus production ticket sales remained strong leased by Time Warner Inc.’s
Overall, U.S. and Canadian very profitable and, more im- this weekend, led by the U.K., Warner Bros. but financed by
movie theaters sold $300 mil- portant for Disney, re-estab- Germany and Australia. Alcon Entertainment, the $105
lion of tickets, according to lishing “Star Wars” as a major Grosses remain very good, million production opened to a
Rentrak, easily besting the global franchise. though not as tremendous, in weak $10.2 million. It made its
prior Christmas record of The all-time biggest domes- developing markets such as debut earlier in China, how-
$269 million set six years ago tic gross, $749.8 million for di- Latin America and Russia. ever, where it is has grossed
Colgate’s Super Bowl spot will remind consumers to save water. when the holiday also fell on a rector James Cameron’s 2009 Among other releases, $40 million.
ADS out a pizza emoji, which U.S.

customers could use in a tweet
or text to order a pie. A TV ad
showed Seattle Seahawk Rich-
Feedback: There were
238,000 social media com-
ments about Nationwide dur-
ing the Super Bowl and
Continued from page B1 ard Sherman ordering his roughly 64% of the comments
a banner that read: “Children’s pizza via Twitter. were negative, according to
rights should never be Feedback: Branded emoji research firm Amobee Brand
blocked. Help us make their symbols were a big trend in Intelligence.
voices heard.” 2015 as companies such as Nationwide said it knew
Feedback: Edelman said 3% Coca-Cola and Taco Bell rolled what it was doing in raising
of users clicked on the banner out cute digital icons. awareness about preventable
ad, three times better than the Domino’s said its emoji or- childhood injuries, though the
average banner click-through dering generated 599 TV men- negative reactions were “a little
rate. Nearly 10,000 people tions on 347 different news af- stronger” than anticipated. Na-
signed the children’s-rights filiates, including discussions tionwide said its research
petition because of the ad and on major shows such as the shows that, of parents who re-
NATIONWIDE MUTUAL INSURANCE CO.
the publicity it received, Edel- “Today” show and “Ellen.” call seeing the message, more
man said. While Domino’s won’t say than 60% said they did some-
how many customers use the thing to make their homes safer.
Blackout Fake Out emoji, it did say that more
Marketer: General Motors than 50% of U.S. orders are Unwanted Innuendo
Co. placed digitally. Marketer: Bloomingdale’s
Agency: Commonwealth/ The Pitch: Bloomingdale’s
McCann Virtual Pitch ran a print ad in its holiday
The Pitch: Just before the Marketer: Mini Cooper catalog that featured a woman
start of the Super Bowl, view- Agency: Unit9 laughing with her head turned A Super Bowl ad for Nationwide Insurance featured a boy listing all the things he wouldn’t get to do
ers saw a shot of the stadium The Pitch: The car maker as a young man looks her way. because he died in a home accident. The ad generated mostly negative social media comments, but
with an announcer talking created two virtual reality vid- The text read: “Spike Your Nationwide said many people took action to make their homes safer.
about the game. Then the eos that were part of the Best Friend’s Eggnog When
screen went dark, fooling launch of the New York Times’ They’re Not Looking.” morning sickness. affixed to bottles as part of a Feedback: As of Dec. 14,
some viewers into thinking the new VR app. One 360-degree Feedback: Some inter- The Feedback: The Food marketing campaign to pro- DraftKings spent $155.3 mil-
game had been knocked off video titled “Backwater” was preted the ad as encouraging and Drug Administration sent mote the beer as the beverage lion on TV ads that aired
the air. Seconds later, a ques- centered on a couple involved date rape. There were more a warning letter to Duchesnay to drink during exciting nights 46,066 times since the start of
tion appeared: “What would in a diamond heist and driving than 15,000 comments on so- Inc., saying the post was “false out. One label read: “The per- the year, while FanDuel shelled
you do if your TV went out?” a Mini Cooper. cial media channels during the or misleading in that it pres- fect beer for removing ‘no’ out about $144.8 million on
The point of the ad was to Feedback: Mini Cooper, week the ad appeared. About ents efficacy claims for Dicle- from your vocabulary for the TV ads that ran 32,127 times,
demonstrate that the Chevro- which is a unit of BMW, said 50% were negative and only gis, but fails to communicate night.” according to estimates from
let Colorado truck is equipped the videos have been viewed 5% were positive, said Net- any risk information associ- Feedback: The label ad-tracker iSpot.
with built-in 4G LTE Wi-Fi, more than 4 million times. worked Insights. The luxury ated with its use and it omits sparked a firestorm on social The ad binge generated
which could help people The day the VR videos went department store chain owned material facts.” media where consumers plenty of consumer complaints
stream the game. live, visits to the brand’s web- by Macy’s Inc. apologized, say- Ms. Kardashian’s post was voiced their objections to a on social media about seeing
Feedback: The ad gener- site were up more than 500% ing it was “inappropriate and pulled, and several weeks later phrase that many said encour- the ads too frequently. John
ated plenty of buzz, including from the average number of in poor taste.” she, with the help of Duch- aged date rape. Bud Light Oliver, host of HBO’s “Last
positive tweets from celebri- visits the site had during 2015, esnay, published another post stopped producing the label Week Tonight,” said it has
ties such as singer Josh the company said. Misleading Star Power that included the limitation of and apologized for the cam- been impossible to avoid them
Groban. Marketer: Duchesnay USA use and important safety in- paign. because they aired every 90
Traffic to Chevrolet Colo- The Pitch: Kim Kardashian formation for the drug, rather seconds on national TV.
rado’s website increased by THE WORST praised a morning-sickness than just a link to the safety Fantasy Overload “Television advertising has
1,100% after the ad ran and drug to her millions of follow- information. Marketer: DraftKings Inc. served us well in introducing
traffic to Chevy’s site rose Super Bowl Downer ers on Instagram. “OMG. Have “As always, our intent was and FanDuel Inc. DraftKings to new players and
400%, the ad agency said. Marketer: Nationwide Mu- you heard about this?” she to follow all FDA guidelines The Pitch: Daily fantasy- informing current players of
About 71,000 site visitors re- tual Insurance said in a post. “It’s been stud- around social media,” the sports operators DraftKings innovations in our game offer-
searched the vehicle. Agency: Ogilvy & Mather ied and there was no in- company said in a statement. and FanDuel launched massive ings,” DraftKings said in a
The Pitch: A Super Bowl ad, creased risk to the baby. I’m ad campaigns this year. Draft- statement. FanDuel declined to
Easy Order intended to promote child so excited and happy with my Mislabeled Kings ads, for example, were comment.
Marketer: Domino’s Pizza safety, showed a boy listing all results.” Marketer: Anheuser-Busch voiced by actor Edward Nor- In recent months, the daily
Inc. the things he would never get In her post, Ms. Kardashian InBev ton and showed football fans fantasy operators have battled
Agency: Crispin Porter + to do—ride a bike, travel the said she was “partnering” with Agency: BBDO obsessing about making their with some states in court
Bogusky world, get married—because Duchesnay USA to raise The Pitch: Bud Light issued fantasy league picks and cele- about whether their games
The Pitch: Domino’s rolled he died in an accident at home. awareness about treating 140 different labels that were brating their wins. qualify as illegal gambling.
THE WALL STREET JOURNAL. Monday, December 28, 2015 | B5
Source: Nielsen. A18-49(000), L+3. CY’15 t-d (11/29/15), Prime (M-Su 8p-11p). #1 Destination and Show: Original Broadcast and Cable Programs, excl sports, specials and repeats.
#1 Talk Show: TD vs. all Broadcast and Cable Talk Shows, excl repeats. Top 4 Launches: ’93-‘15 (blended Live/LSD number prior to ‘07), Cable series premiere telecast only.
#1 Social Program: among Unique Twitter Authors and Twitter Impressions on Broadcast and Cable series, excl sports and specials. Top 50: Cable telecasts, excl sports, specials and < 5 min of programming.
B6 | Monday, December 28, 2015 THE WALL STREET JOURNAL.
TECHNOLOGY @wsjd | wsjd.com
MIMS
can ask for crystal balls to sooner or later when they
predict anything they wish. wear the headsets. You are
The tricky thing about big going to try a game in VR
data is that you never know and want to stay there for
Continued from page B1 what factors will be predictive hours—but, depending on
through the smoke and mir- of a desired outcome. But if how sensitive you are, you
rors of slide decks and new your business isn’t employing might not be able to do that.
money from nontraditional data scientists, you might Unfortunately, that is likely
investors manage to do their want to ask yourself if you to be the state of VR for the
job, a whole bunch of big- can afford to get eaten by foreseeable future.
name startups are going to competitors who are.
take a haircut. Prediction 5:
But that is just the begin- Prediction 4: Tech predictions are worth
ning. Some startups could You are going to develop what you pay for them
cease to exist in their current a love/hate relationship
MARIO ANZUONI/REUTERS
state in 2016. Whole sectors with virtual reality This year I almost wrote a
are ripe for flameouts and column about how all the
consolidation, like food deliv- Just in time for the holi- graphs that analysts publish
ery or financial technology. days, Samsung Electronics about the future market for X
The lesson of the last tech Co. released the first pretty or the likely outcome of Y are
bubble is that creative de- good, relatively affordable, generally wrong in hindsight.
struction isn’t just for incum- consumer-grade VR system— Technology is a game of un-
bents; the volume of friendly Samsung has released the first consumer-grade virtual-reality system this year: the Gear VR. the Gear VR. Unfortunately, predictable disjunctions rather
fire in the advance of the it only works with Samsung than straight-line growth or de-
“new” new economy is sub- Chief Executive Mark Zucker- mand the kind of influence good risk, and they are the phones, but a raft of other celeration. So keep that in mind
stantial. From the wreckage berg once said, one of his that can only be achieved reason weather forecasting is devices are coming to market the next time a confident nu-
of these startups will come goals is to create the world’s when you’re buying ink—or better than ever. As the code in early 2016, from Oculus, merical prediction comes
the warm bodies and hard- greatest newspaper. And pixels—by the barrel. behind these algorithms and HTC Corp. and others. Even across your screen.
earned lessons that build the who’s going to provide the the knowledge required to if you aren’t an early That said, given how bull-
next tech giant. content for it? How about Prediction 3: Predicting use them diffuses, we are adopter, you probably know ish I am about data analytics
Jeff Bezos’s Washington Post the future will become fast entering a world in someone who is, which as a competitive advantage,
Prediction 2: and Jack Ma’s South China embarrassingly easy which the only barrier to di- means 2016 is the year many who am I to argue with Mi-
Some other tech titan Morning Post? vining usable predictions of us will have our first expe- chael Dell when he says big
will buy a media property There have been so many Prediction algorithms—the about the behavior of many rience with VR. data will be the next “trillion
acquisitions in media this fruits of big data—have be- parts of a business—from its Let’s not mince words: VR dollar” industry? He didn’t of-
It is a common myth that year that the pickings are come so ubiquitous that we inner workings to the behav- is awesome. It is also very fer a timetable, so we don’t
the builders of tech fortunes getting slim, but the same take them for granted. They ior of customers—is gather- likely to be nauseating or at have to figure out the x-axis
want to replace traditional egos that drive CEOs to con- are how the most sophisti- ing the right kind of data. least a little disorienting, an on that graph until his predic-
media. As Facebook Inc. quer whole industries de- cated lenders know you are a This doesn’t mean CEOs effect that hits most folks tion is a foregone conclusion.
and look forward to him return- SAMSUNG GROUP ($622 million) worth of shares in tronics Corp. abruptly resigned news release, without offering
Business ing to work when he is feeling
better,” she said.
Affiliate to Sell Stock Samsung C&T by the end of
February, as advised by the anti-
Friday six months after he
took the post, a move that
further details.
The 61-year-old Mr. Endo, a
Watch Ms. Little declined to provide
further comment.
In Accord With Rules
South Korea’s largest con-
trust agency, a spokeswoman for
Samsung Group said. She added
comes as the company’s princi-
pal shareholder considers stra-
former executive at the Japan
units of International Business
Mr. Pearson, 56, is a former glomerate Samsung Group said that Samsung SDI’s stake in tegic options. Machines Corp. and Oracle Corp.,
McKinsey & Co. consultant who affiliate Samsung SDI Co. will Samsung C&T had inadvertently Renesas said Takao Endo ex- had just become CEO of Rene-
was the architect behind work to unload a 2.6% stake in risen recently following a merger pressed his desire to resign for sas in June.
Valeant’s turnaround from a de facto holding company Sam- between Samsung C&T and an- “personal reasons.” Mr. Endo will A government-backed fund
VALEANT PHARMACEUTICALS troubled small drugmaker. sung C&T Corp. to abide by the other Samsung affiliate, where remain on the board until the called Innovation Network Corp.
Since taking Valeant’s helm in country’s latest regulations on Samsung SDI held a minor stake. general shareholders’ meeting of Japan owns nearly 70% of Re-
CEO Hospitalized 2008, Mr. Pearson used dozens cross-shareholdings. Details on how or to whom the set for June. nesas. The Wall Street Journal
For Pneumonia of acquisitions to expand the The country’s Fair Trade Com- stakes will be sold have yet to be At a board meeting Friday, di- reported in November that the
Michael Pearson, chief execu- business. mission, in a statement Sunday, decided. A spokesman for Sam- rectors promoted the chief oper- fund was reviewing strategic op-
tive of Valeant Pharmaceuticals Yet Mr. Pearson’s tactics also recommended that Samsung sung SDI reiterated comments by ating officer, Tetsuya Tsurumaru, tions for Renesas including selling
International Inc., is in a hospital drew criticism, especially the SDI sell its extra stake in Sam- the group’s spokeswoman. to the chief executive post, the some or nearly all of its shares.
receiving treatment for severe drastic cuts he made to newly sung C&T, saying that the stake- —Min-Jeong Lee company said. Mr. Tsurumaru, 61, The Journal also reported
pneumonia, the company said acquired companies, his light in- holding would be viewed as a vi- is a former executive of Hitachi that German chip maker Infin-
Friday. vestment in drug research and olation of the country’s rules on RENESAS ELECTRONICS Ltd., a Renesas shareholder. eon Technologies AG had ex-
Mr. Pearson was recently ad- the major price increases taken cross-share ownership after a “Under this new management pressed interest in investing in
mitted to a hospital for the se- on drugs. grace period.
CEO Steps Down structure, we will seek further Renesas but that talks had been
vere case of pneumonia, Valeant The New York Times reported Samsung SDI, a battery-mak- After Six Months expansion of our business and held up by Japanese concerns
spokeswoman Laurie Little said. Mr. Pearson’s illness earlier. ing unit, will sell 5 million shares, The chief executive of semi- enhancement of corporate about technology leaking abroad.
“We wish him a speedy recovery —Jonathan D. Rockoff or 727.5 billion Korean won conductor maker Renesas Elec- value,” the company said in a —Peter Landers
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.
10s Edmonton
d t -0s <0 1 2 3 4 5 6 7 69 Insult,
8 9 10 11 12 30 “I don’t believe
20s 0s 0s
40s 0s
informally my eyes!”
Calgary
C l ary 13 14 15
Vancouver
V 70 Wife of Wills 31 Assn.
10s
Winnipeg
ip 10s 16 17 18 Down 32 Colorful
ttl
Seattle 20s
1 “Gosh dang!” squawker
P d
Portland 30s 19 20 21
Helena
l Ottawa
Montreal
2 Natural shower 33 More than
30s Bismarckk 40s
Billings
20s 20s Augusta
A g t 22 23 24 25 26 27 28 accessory enough
Eugene
g i
Boise
10s p /St
pls / . Paul
Mpls./St. Pau Toronto
T t A bany
Albany
b t
Boston 50s 3 Malta money 34 Cozy place to
29 30 31
rtford
Hartford 60s 4 “Forgot About cuddle
10s Pierre Siouxx Falls
ll k
Milwaukee Detroit l 30s
Buffalo
Chh g Cl l d
Cleve
Cleveland New Yorkk
ew Y 70s 32 33 34 35 36 ___” (Grammy- 38 Forbid entry to
Reno Salt Lake
L eC City
City es Moines 30s Chicago
Des Philadelphia
Ph
hil d lphi
50s 20s Cheyenne Omaha
h 80s winning rap 40 Polite reply to
Pittsburgh
Pit b h ashington
hington
h
Washington DC
D.C. 37 38 39 40
Sacramento Springfield
p di p
d Indianapolis 40s song) a lady
Denver 90s
an Francisco
San Topeka
Top k Lou
St. Louis LLou
Louisville 50s Richmond
h d 41 42 43 44 45 46 5 Girl Scout level 43 George W. Bush
Las Colorado Kansas
Ch l t
Charleston 100+
Ve
Vegas Springs City 60s Raleigh
h two above is the only
40s hit
Wichita 47 48 49
Los A
Angel
Angeles
Brownie president to
Santa
anta Fe Memphis
ph Nashville
h ill C h
Charlotte hold one
60s Albuquerque
50 51 52 53 54 55 6 Comparable
Ph
Phoenix Oklahoma City
City Warm Rain
San Diego
30s LLittlee Rockk Atl t C
Atlanta Columbia
b
bi things 44 See 18-Across
50s Tucson
T c Birmingham
h 56 57 58 59 60
Ft. Worth Dallas
D ll Jackson
Jack
Cold
7 Bud 45 Steven
El P
Paso 70s T-storms Soderbergh film
50s 60s Jacksonville 61 62 63 64 8 Brandenburg
0s -0s 40s Austin
A ti Houston
80s Stationary Concertos that takes place
Mobile
b Snow 65 66 67
10s ew Orleans
New
l d
Orlando composer on a space station
20s 80s San
an Antonio Tampa
Honolulu
l Showers Flurries 68 69 70 9 Hue and cry 48 Friend of George
30s Miami and Jerry
A h g
Anchorage 60s 10 “Boom Clap”
70s 49 County
40s singer
Ice
AUTHORS OF THE YEAR | By Peter Wentz 11 Blood southeast of
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W
Across 24 Vegetarian’s 50 “I’m waiting...” 12 Dedicated London
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Extorted money substitute 51 It may come verse 53 He tweets
Omaha 26 19 sn 22 15 pc Frankfurt 50 33 s 45 32 c under the handle
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 85 68 pc 85 68 pc Geneva 47 31 s 46 32 sh from 26 Tavern quaffs down hard on 14 Put the kibosh
Today Tomorrow 29 Former you on @POTUS
Philadelphia 44 40 c 62 46 r Havana 87 68 s 87 69 s 5 Upper limit
City Hi Lo W Hi Lo W Phoenix 60 39 s 56 37 s Hong Kong 67 58 pc 67 58 c 8 Young fella congressman 52 Text adornments 17 Bud holder 54 23-Down, e.g.
Anchorage 39 35 r 39 32 c Pittsburgh 40 36 r 55 37 r Istanbul 54 44 s 53 39 pc who co-wrote 55 Common navel
Atlanta 73 59 t 66 57 pc Portland, Maine 30 16 pc 34 25 sn Jakarta 89 76 c 90 76 sh 13 “Who’s ___ 56 Move with great 21 Finds on the
Austin 51 27 s 58 37 s Portland, Ore. 40 33 c 41 34 sh Jerusalem 56 44 s 57 40 s daddy?” the alternative care dial 57 Goes down
Baltimore 46 39 c 63 43 r Sacramento 51 31 pc 50 29 s Johannesburg 85 62 t 88 58 pc 14 Nickname history “1945” 58 Investing goal 23 Common spot 59 Outlaw Clanton
London 56 49 c 54 48 pc
Boise
Boston
24 15 sf 27 16 pc
35 28 pc 42 36 sn
St. Louis
Salt Lake City
52
28
34 r
18 c
41 29 pc
27 19 c Madrid 56 39 c 53 34 pc
grandkids might 32 Concocted 60 Good for for arthroscopic 61 Convenience
Burlington 23 16 pc 37 32 sn San Francisco 51 40 pc 52 38 s Manila 86 74 s 86 74 s use 35 Prynne of “The Gascons surgery store
Charlotte 70 56 t 72 59 sh Santa Fe 33 15 s 30 14 c Melbourne 72 49 s 77 49 s 15 Garden pest Scarlet Letter” 61 Cornish of 25 In shape convenience
Chicago 36 33 i 36 28 pc Seattle 41 32 c 39 33 pc Mexico City 74 47 pc 74 43 pc 16 Intellectual who 36 Super Bowl held “Sucker Punch” 27 Brilliant display 62 Bud
Cleveland 39 37 r 49 34 r Sioux Falls 18 15 sn 23 11 sn Milan 46 32 pc 48 33 pc in 2007
Dallas 45 30 c 51 33 s Wash., D.C. 46 42 r 62 47 r Moscow 23 16 s 22 16 pc wrote the 63 Humorist who 28 Carpenter’s 63 Spitting bullets
Denver 25 12 pc 25 5 c Mumbai 90 71 pc 91 72 pc historical novel 37 Small shape- wrote the wooden wedges 64 Taipan frypan
shifter
Detroit
Honolulu
36 35 i
83 71 pc 83 71 s
46 34 r
International Paris
Rio de Janeiro
54
92
46 c
76 pc
53 41 sh
91 78 t
“1876” off-color satire
Previous Puzzle’s Solution
Today Tomorrow 18 Frequent 39 Bad news for a “1601”
Houston 52 36 pc 57 46 s Riyadh 61 48 pc 66 52 s
Indianapolis 49 41 r 42 31 pc City Hi Lo W Hi Lo W Rome 59 35 s 57 33 s 44-Down creation bad nanny 65 Reznor of S A L E M E S S O M I S S
A L E X A N A T E I O T A
Kansas City 33 21 sn 27 14 pc Amsterdam 54 43 pc 51 41 sh San Juan 84 75 pc 85 75 pc 19 Enigmatic blip 41 PC’s brain Nine Inch Nails D O G H A N D L E R SW I G
Las Vegas 46 32 pc 49 30 s Athens 61 46 s 63 48 s Seoul 32 17 s 35 22 pc D E S I S OM E S H A N E
20 Figure skater’s 42 And no more 66 Petite ___ B U F F A L OW I N G S
Little Rock 57 35 c 51 35 s Bangkok 93 75 s 91 74 s Shanghai 47 35 c 49 36 pc (girlfriend)
Los Angeles 59 38 c 61 39 s Beijing 38 18 s 40 22 s Singapore 90 78 c 88 77 c
leap 46 Office nos. I N V I EW P R AM
S O O T Y C OWP A T T Y
Miami 83 75 pc 84 75 pc Berlin 48 36 pc 42 30 pc Sydney 72 64 pc 74 62 s 21 Four-time role for 47 Comedic actor 67 Luxury hotel L O T S A U T E R I O
Milwaukee 34 31 i 36 27 c Brussels 54 45 pc 52 42 sh Taipei 65 59 r 65 61 r Chris Hemsworth who wrote the chain A P E H O U S E L I E N S
I R MA K I T K A T
Minneapolis 24 21 sn 28 19 sn Buenos Aires 95 75 s 89 70 pc Tokyo 48 38 c 50 39 s 22 Some beauty dystopian novel 68 Ways things are SWA L L OWT A I L S
Nashville 74 46 t 56 43 pc Calgary 24 11 sf 18 10 pc Toronto 29 25 c 43 30 r C A R L Y H O S T E T O N
New Orleans 66 49 t 64 55 pc Dubai 75 65 s 75 63 s Vancouver 40 28 pc 40 26 c treatments “2030” done O L G A G O O S E B E R R Y
New York City 41 38 pc 53 45 r Dublin 54 36 r 50 48 r Warsaw 47 27 c 33 20 s O D O R E L L E AMA Z E
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
Oklahoma City 32 15 sn 35 20 s Edinburgh 51 41 c 47 44 c Zurich 45 28 s 44 29 c T O N Y T E S T G S P O T
BEYOND WORDS.
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THE WALL STREET JOURNAL. Monday, December 28, 2015 | B7
SMALL BUSINESS
Stores Race to Reach Consumers RETURNS load. “We transform [them]

into bite-size chunks that a
much larger audience can di-
gest and that drives the price
Renewed effort by awareness of the brand, that Continued from page B1 higher,” says B-Stock Solutions
we shouldn’t be afraid,” Mr. Shorr Packaging, a distributor CEO Howard Rosenberg. The
Nike to boost direct- Pugsley said. “Time will tell of packaging to retailers and pallets are auctioned off on
to-consumer sales has whether that is a good story other businesses. the Internet, and buyers pick
to put us at ease, or whether Return rates can vary up the items directly from the
hurt athletic retailers it could be the truth.” widely, but generally between retailers’ warehouses.
The wholesale ordering 10% and 15% of all online pur- At Groupon Goods, the In-
BY SARA GERMANO process puts small businesses chases are returned, though ternet retailing arm of the
at a distinct disadvantage. the rate can exceed 30% for daily-deals website, many
Nike Inc.’s business is Most of athletic retail operates certain categories such as ap- items that shoppers return are
booming but mom-and-pop on a future-ordering system, parel, estimates logistics pro- collected by Genco, which in
sneaker shops find little rea- whereby retailers place bulk vider Optoro. A main reason is effect purchases the returned
son to cheer. orders for products from man- the increasing use of free-re- merchandise and sells it to liq-
The world’s largest maker ufacturers like Nike upward of turn offers by online retailers. uidators and other Genco cus-
of sportswear and sneakers is six months ahead of delivery. Large volumes of returned tomers.
making a renewed push to But fashion tastes change goods don’t go back to the re- When items are disposed of,
boost its direct-to-consumer quickly, and it is tougher for tailers that originally sold Groupon recovers a small per-
sales that has smaller athletic smaller stores to keep up be- them, even if the items haven’t centage of their retail value,
retailers feeling squeezed. In- cause changing orders is been opened or used. Instead, typically around one-fifth of
dependent sportswear compa- costly and larger chains such many are collected at central- their original price, though the
GLEN STUBBE/MINNEAPOLIS STAR TRIBUNE/ZUMA PRESS

nies, already struggling with as Foot Locker Inc. can afford ized returns centers run by lo- amount varies by product cat-
the expansion of online sales to ship products directly from gistics companies and resold egory. Andrew Bowerman,
and industry consolidation, Nike or vendor’s factories to in bulk at deep discounts to Groupon’s vice president of lo-
now worry that they may not their own facilities. liquidators and small busi- gistics, says the retailer’s re-
be able to compete toe-to-toe “We have [set] our buying nesses. turn rates are broadly in line
with vendors such as Nike. pattern by [the] year, and now “We call that ‘re-com- with the industry.
Results from Nike’s most they have color changes every merce,’ where products get a
10-20%
recent quarter underscore the three months,” Mr. Pugsley second life,” said Ryan Kelly, a
effort: business on Nike.com said. “That causes heartburn for vice president of strategy at
rose 50% for the period ended us because people don’t realize Genco, a FedEx Corp. business
Nov. 30, while all direct sales how the product cycles work, that handles returns for many Share of its original price a
jumped 26%. It is part of a and people say, ‘if they can get U.S. retailers. He says there is returned item is expected to
larger endeavor by the com- it, why can’t you get it?’” strong demand for some cate- fetch when sold to liquidators.
pany for direct sales to grow Nike, too, has more work to gories, such as children’s toys,
faster than wholesale. By Nike is making a fresh push to increase its direct sales. do on the logistics front. sporting goods, housewares
2020, Nike projects the seg- Inventories for the most re- and consumer electronics. The company has an ex-
ment will more than double to cent quarter rose 11%, largely Unprocessed returns from tended holiday returns period
$16 billion and account for a Ready to Play driven by an 8% rise in whole- retailers traditionally are sold that allows shoppers making
third of revenue, up from Share of merchandise that comes from Nike, the largest single vendor sale products. On an earnings in truckloads, normally be- purchases between Nov. 1 and
roughly a fifth today. for each of the three biggest publicly traded U.S. athletic retailers. call with analysts last week, tween 10 and 100 trucks at a Christmas to return items
“In this day and age, with executives said Nike’s new time, fetching between about through Jan. 10, versus a usual
all the athletic brands doing Finish Line North American distribution 10 cents and 20 cents on the two-week window for returns.
direct to consumer on their 65% (2010) 73% (2015) center, opened in Memphis in dollar, according to Optoro Mr. Ringelsten’s Shorewood
t
own websites, if customers June, isn’t fully online yet. CEO Tobin Moore. Most of Liquidators is a buyer of
Foot Locker
ever start to view your store As Nike continues to ex- those goods end up in pawn- Groupon’s returns. Back in
68% (’09) 73% (2014)
t
as just a place where they go pand its direct sales and clear shops, dollar stores and flea Shorewood, Ill., Mr. Rin-
and pick up an item, like they Dick's Sporting Goods excess inventory, Chief Finan- markets. gelsten’s employees sort
go to the grocery store to pick Source: the companies cial Officer Andrew Campion But retailers have been try- through returned merchandise
13% (’09) 19% (’14) THE WALL STREET JOURNAL.
up a loaf of bread, your value cautioned that margins may ing different strategies to get from multiple retailers, exam-
in the equation is diminished,” suffer in the short term. more bang for their returned ining items as varied as ping-
said Brian Shelton, the gear have to work harder to his store never stocked. Some analysts are question- buck. Washington, D.C.-based pong tables, jewelry, bicycles
founder and owner of Foot- hold on to their customer Ray Pugsley, co-owner of ing whether Nike’s growth will Optoro helps companies resell and vintage auto parts and
hills Running Co., a specialty base. the Potomac River Running come at the expense of other returned items online and listing many of them for sale
store in Cookeville, Tenn. Mr. Shelton sees the com- chain in the Washington, D.C., retailers. finds other ways to stem in online auctions on eBay or
It doesn’t help these spe- petition creeping up around area, said as Nike ramps up its City Sports Inc., the Bos- losses, which it says can help the company’s own website.
cialty retailers that athletic him, so he has cut back on or- direct-sales business, he is ton-based sportswear chain lift recovery rates to between He also has people dedi-
gear is now everywhere. The dering athletic apparel after seeing other brands in the targeted at urban profession- 40 cents and 70 cents on the cated to packing and shipping
so-called athleisure movement visits to the local TJ Maxx sportswear industry, such as als, failed to find a buyer in its dollar. more than a thousand pack-
of wearing sporty clothes for showed the store “packed to Brooks and Saucony, attempt chapter 11 bankruptcy pro- B-Stock Solutions Inc., a ages daily.
non-sport activities means the gills” with $30 running to follow suit. ceedings. The chain cited in- returns-logistic provider, helps “To make money in this
sportswear has moved beyond shirts. Sometimes, he said, “They’ll tell us with a creased competition in the retailers including Wal-Mart business it is a volume game.
athletic retail to fashion bou- he’ll spot his regular custom- straight face that online sales athletic retail market as Stores Inc. and Home Depot If we can make 10% profit we
tiques and department stores. ers, wearing models of run- really doesn’t do that much among the factors that led to sell returns in smaller vol- are jumping up and down,”
Traditional sellers of sports ning shoes in colors he knows volume and it is to increase its demise. umes, typically by the pallet- Mr. Ringelsten says.
“I taught her how to ride

a bike. I can teach her
how to run my company.”
Hiscox insurance for small businesses.
The courage to do more and be more.
Learn more at encouragecourage.com
© 2015 Hiscox Inc. All rights reserved.

B8 | Monday, December 28, 2015 * *** THE WALL STREET JOURNAL.
SPORTS
The Year of Ronda, the Royals and a Horse
Greetings my friends, I sport. I get panicky before I
hope you’re not currently buy gum at a gumball ma-
feet up in a crowded ER af- chine.
ter a wipeout on your shiny
new holiday hoverboard FIFA and IAAF Are Just
(how those hoverthings are So FIFA and IAAF. I really
legal, and I still am not al- don’t know where to begin
lowed to walk into the post on this one. FIFA is a mess,
office with my but you pretty much knew
shirt off, is a that all along, and, after a
frustrating mys- season of police round-ups in
tery). a Zurich hotel that sound like
Anyway, you scenes from a Wes Anderson
know what time movie, soccer’s governing
JASON it is: lazy year- agency has stepped in and
GAY end list time! banned fearless leader Sepp
Lazy listing sea- Blatter for eight years. Prob-
son begins earlier lem solved! Kidding, of
than ever—pre-Halloween, it course: This will play out in
seems, rolled out even be- courtrooms for years as FIFA
fore the tinsel and the Ma- trudges forward with terrible
riah Carey Christmas yodels, ideas like a 2022 World Cup
as the listers scroll out their in Qatar. Meanwhile, track
top films, TV, books and and field’s overseeing body,
loud, tiny restaurants a mor- the IAAF (International Asso-
tal like I won’t be able book ciation of Athletics Federa-
a table at until 2079. tions) gave FIFA a run for the
JULIO CORTEZ/ASSOCIATED PRESS

Dirty secret: The main most corrupted sports acro-
reason year-end lists were nym of 2015, with staggering
invented was to fill space in allegations of wholesale
the paper and give reporters cover-ups and payoffs involv-
a semi-guilt-free opportunity ing Russian athletes. The
to split early for the holi- good news is that the 2016
days. As you read this, I am Summer Olympics in Rio
on an empty beach in Ha- aren’t until August, and so
waii, watching the surf at Clockwise from top: American Pharoah became the first Triple Crown champion since 1978; mixed martial arts star Ronda Rousey lost this whole epidemic, institu-
sunrise. OK that’s not true. I her championship belt to Holly Holm; Stephen Curry and the Warriors topped LeBron James and the Cavaliers for the NBA title. tional doping crisis moti-
am at my mother-in-law’s vated by greed will be totally
condo, trying to convince an cleared up by then.
11-month-old not to eat the
remote control. Feel the The 2015 U.S. Women’s
glamour. National Soccer Team. You
My year-end list is a list will remember Carli Lloyd’s
PAUL CROCK/AGENCE FRANCE-PRESSE/GETTY IMAGES

of sports moments. It is not spectacular hat trick, but
perfect or exhaustive. There here’s an equally important
JOHN G. MABANGLO/EPA/ASSOCIATED PRESS
will be stuff you think I number: 25.4 million televi-

missed. I can already sense sion viewers for the U.S.
the Ohio State fans furious team’s July 5 5-2 rout of
that I didn’t mention the Japan, which is an all-time
Buckeyes BCS playoff title. I record for a soccer TV audi-
didn’t mention Duke’s NCAA ence for any event, men or
men’s basketball title, either, women, in the United States.
but I was never going to Please unwrap that amazing
mention that—I went to Wis- number the next time you
consin, and I spent three hear “nobody cares about
days weeping in a dark room soccer” or “nobody cares
after the Badgers lost that fi- about women’s sports.”
nal. American Pharoah’s Tri- Richmond Worlds. The the Masters, the U.S. Open, FedEx Cup and $22 million
You may wish to loudly ple Trot. As little as a year cycling world championships finished one stroke short of on the year. The man is un- Deflategate. Some stuff
yell at my list—go ahead, ago, the world watched a de- in Richmond, Virginia are a playoff at the British, sec- flappable in the tightest mo- happened with some foot-
yell like an angry sea lion if spondent owner of a Ken- not on this list because I’m a ond at the PGA, took the ments of a pressure den balls.
you like. My list is NOT in tucky Derby- and Preakness- cycling nut. Fine: They’re on
any kind of order, because winning (and Belmont- this list because I am a cy-
comparing and putting an losing) horse claim that he cling nut. But if you were
order on this kind of sports wouldn’t see a Triple Crown there, you know I’m not that
stuff is super-weird. winner in his lifetime, that crazy—Richmond Worlds
the ask had become too was a staggering event fea-
Royalmania! One of the hard, that the field was too turing the world’s greatest
great turnarounds (and still stacked with fresh legs pedalers, put on by a wel-
a little under-appreciated, I against a competitor that coming city and organizers
think): the Kansas City chose to enter all three who knew what they were
freakin’ Royals rising from races. And then we doing. On the final weekend
the Crypt of the Baseball had…American Pharoah, a there was a first-rate
Forgotten to become a win- mesmerizing, misspelled women’s race won by the
ning machine and World Se- horse born to torment copy UK’s Lizzie Armitstead, and
ries champion, emulated by editors and win races and a first-rate men’s race won
franchises around the league. the first Triple Crown by Slovakia’s Peter Sagan.
That rally in Game 5 versus champ since Affirmed in Plus, there was beer.
the Mets said it all: These 1978.
Royals are brilliantly relent- It will be fascinating to The Warriors. It’s such
less. Also, the Mets are the see if there’s any “Pharoah an obvious choice, but
Mets. bump” in racing in 2016, or they’re really the Greatest
as much of an international Sports Show on Earth at this
Rousey’s Rise and Fall. intrigue at Belmont should minute, the defending NBA
For most of the year, the we get a double-winner at champs who began the sea-
mixed martial arts champ Churchill Downs and Pimlico. son with 24 straight wins
Ronda Rousey was arguably and currently sit at 28-1.
the most fascinating person Serena—and Novak. Let’s Steph Curry is a transcen-
in sports: an undefeated su- give the all-timer Serena dent player, seats to Golden
perstar who had become Williams her deserved due: State games are as hot as
both a pioneer for women in an astonishing tennis season Hamilton tickets, and here’s
her sport as well as its with three major Slam victo- my favorite part: They’ve yet
greatest economic force, ries, broken only by a semifi- to play a game this season
headlining male-dominated nal upset in New York in with their head coach, Steve
events for the Ultimate September. At 34, she’s still Kerr, who’s been recovering
Fighting Championship the peak of her sport. from back surgery. See them
(UFC). Then, in November, Let’s also give some love if you can. Sell your home if
Rousey was knocked out by to Novak Djokovic, who won you have to, or one or two of
former boxer Holly Holm, three Slams of his own, tak- your least favorite children
abruptly changing the ing his only loss in Paris at or grandchildren.
script. A Holm-Rousey re- the French Open. Djokovic
match will be a massive went 82-6 on the year; Wil- Spieth. Once in my life I
event for MMA, and a turn- liams went 53-3. That’s not want to have placid mien of
ing point in Rousey’s greatness. That’s just ab- Jordan Spieth, the 22-year-
groundbreaking career. surd. old Texas golfer who won
card race. The Pittsburgh Steel-

ers (9-6) fell to the Baltimore
Heard on Ravens (5-10), who are playing
out a lost season and featured
the Field the newly arrived Ryan Mallett
at quarterback. Mallett was
signed earlier this month after
an unsuccessful stint with the
Houston Texans.
Falcons Top Panthers The loss dropped the Steelers
On Crazy Day in NFL behind the New York Jets (10-5)
The Carolina Panthers’ un- in the AFC playoff race thanks
ASSOCIATED PRESS
beaten run ended Sunday in a to the Jets’ 26-20 overtime win

shocking 20-13 loss to the At- over the New England Patriots
lanta Falcons. (12-3), who somehow decided to
The loss, which dropped the kick off after winning the over-
Panthers to 13-1 on the season, time coin toss, leading to Ryan
came just two weeks after they Cam Newton and Carolina saw Fitzpatrick’s game-winning 6-
had decimated the Falcons, 38-0. their unbeaten streak snapped. yard strike to Eric Decker.
What changed? Well, Falcons re- In Kansas City, the Chiefs
ceiver Julio Jones decided to be- join the 1972 Dolphins and 2007 (10-5) closed out the Cleveland
come uncoverable, slicing through Patriots as the only teams in Browns (3-12), 17-13, to clinch
the Panthers secondary for 178 the modern era to finish an NFL one of those AFC wild-card
yards on nine catches, including season undefeated, though they spots. The Broncos and Bengals
one dramatic 70-yard touchdown will still receive a bye in the NFC face off Monday night in a game
that gave the Falcons (8-7) a playoffs. that will go a long way in deter-
14-10 third-quarter lead. Meanwhile, crazier results mining who will receive the AFC’s
The result was mostly cos- peppered the scoresheets on second bye after the Patriots.
metic. The Panthers failed to Sunday, clouding the AFC wild- —Kevin Clark
MOVING THE MARKET C2 | MARKETS DIGEST C4 | CLOSED-END FUNDS C5
Ignition Delay
Feeling the Heat For Cheap Fuel
ASSOCIATED PRESS
HEARD ON
El Niño has farmers under pressure COMMODITIES | C3 THE STREET | C6
© 2015 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Monday, December 28, 2015 | C1
Last Week: DJIA 17552.17 À 423.62 2.47% S&P 2060.99 À 2.76% NASDAQ 5048.49 À 2.55% 10–YR. TREAS. g 13/32, yield 2.241% OIL $38.10 À $2.04 EURO $1.0965 YEN 120.42
Stocks Limp to End 2015 Falling Flat

The S&P 500 usually rises in the final weeks of the year, but this
time it is declining.
Market forces that this year’s disappointing per- stocks rose last week, the S&P sharply around the Federal Performance for the S&P 500 between Nov. 20 and year-end
formance—including low 500 is on track to decline in Reserve’s decision to raise 20%
have weighed on U.S. commodity prices, sluggish the period between Nov. 20 short-term interest rates for
15
shares are likely to global growth, shrinking cor- and the end of the year for the the first time in nine years.
porate profits and a stronger first time since 2002. Since Energy stocks led the broader 10
persist into next year U.S. dollar— 1995, there have been only market higher in light holiday
ABREAST OF could persist three times the index has trading last week as oil prices 5
BY CORRIE DRIEBUSCH THE MARKET in 2016. fallen during that period. recovered slightly, but the S&P
AND DAN STRUMPF Investors The S&P 500 has fallen 500’s energy sector is still 0
have long 0.9% so far this month in down 8% this month and U.S.
–5 –1.2%
It has been a bumpy end to counted on a rally around the choppy trade. A tumble in crude is off about 8.5%.
a lackluster year for U.S. holidays to give a lift into commodities prices hit junk “From the end of November 1995 ’97 ’99 ’01 ’03 ’05 ’07 ’09 ’11 ’13 ’15
stocks. year-end, and stock markets bonds and energy shares, and into December a lot of people Note: 2015 figure is through Dec. 23
Many of the forces behind traditionally deliver. While stocks rose but then fell Please see STOCKS page C2 Source: FactSet THE WALL STREET JOURNAL.
‘Safe’ Puerto Rican

Debt Stirs Worries
BY AARON KURILOFF tected,” the statement said.
“If the commonwealth de-
As Puerto Rico runs out of faults on its general-obligation
cash and approaches a Jan. debt, then bondholders are go-
1 due date for about $1 billion in ing to sue Puerto Rico to raid
debt payments, investors are in- the sales taxes that back Co-
creasingly uneasy about the fina,” said Matt Fabian, partner
fate of bonds sold with a near at the research firm Municipal
guarantee. Market Analytics. “And if they
The bonds, backed by sales don’t pay Cofina, those bond-
taxes and known by the Spanish holders will sue, saying they
acronym Cofina, were issued have a property right to that
starting a decade ago to plug revenue above all stakeholders.”
budget gaps and repay other The looming conflict high-
lenders. The debt at the time lights the interconnectedness of
was considered the island’s saf- Puerto Rico’s debt, the complex-
SASHA MASLOV FOR THE WALL STREET JOURNAL
est offering, and Cofina bonds ity of the island’s effort to nego-
soon became the biggest chunk tiate competing legal claims on
of Puerto Rico’s debt outstand- its dwindling cash and the na-
ing.
$4 billion
Now, as the struggling com-
monwealth redirects money in-
tended for some debt to pay
bonds with better legal protec- Amount of Cofina
tions, some analysts are pre- bonds sold as
dicting it will soon target Co- zero-coupon securities
fina bonds to avoid defaulting
on its constitutionally protected
Even CEO Michael Corbat won’t have his own door under the new floor plan. ‘You’re going to be forced to bump into people,’ he says. general-obligation debt. Such a tionwide breadth of creditor ex-
move would spark a showdown posure to the fiscal crisis on the
Citigroup’s Office Plan: No Offices

over its two most-sacrosanct island.
obligations. Puerto Rico owes investors
A spokeswoman for Puerto about $70 billion and has strug-
Rico declined to comment on gled with a decadelong reces-
BY CHRISTINA REXRODE open-plan layout—a vibe more bank’s home base from its Park quarters is minimalist and Cofina. sion and declining population,
identified with tech startups Avenue location and bringing more egalitarian. Since most As a sign of the concern, leading Gov. Alejandro García
In renovating its downtown than global banking conglom- key decision makers under one desks aren’t assigned, employ- many of the Cofina bonds al- Padilla to call its debts unpay-
Manhattan tower, Citigroup erates—where no one, not roof. ees must lock up their family ready trade below 60 cents on able. The commonwealth de-
Inc. is planning to offer all the even Chief Executive Michael The Park Avenue offices photos and personal tchotch- the dollar, less than benchmark faulted on bond payments in
amenities of the modern sky- Corbat, will have a door. Most feature a style that could be kes each night. Everyone gets debt from the island. August and is in restructuring
scraper, including a rooftop employees won’t even get called midcentury banker: dark a window view—but no one Some Cofina creditors aren’t talks with creditors. It has also
deck, state-of-the-art gym, up- their own desks. mahogany paneling, red gets complete privacy. waiting for the government to has turned to the U.S. Congress
graded coffee and faster eleva- Citigroup says the setup leather walls and bookshelves Mr. Corbat, who started his act, saying in a public state- for access to bankruptcy protec-
tors. will connect people face to filled with thick volumes of career on the cacophonous ment last month that any effort tions.
But when the bank’s top ex- face, raise energy levels and Delaware law. Those offices Salomon Brothers trading to use the money for other pur- Investors in Cofina range
ecutives move next month save money, by fitting more are currently the bank’s offi- floor in 1983, pushed for the poses without their permission from mutual funds to hedge
into their new digs at the 39- people into one space. cial headquarters, and the base new design even though he would violate the U.S. and funds to individual retirees, an
story office building, they will The project is part of a for Mr. Corbat and a handful of knows it won’t be universally Puerto Rico constitutions. “As array of interests that charac-
find one big thing missing: ac- broader effort to convert the his top deputies, while Presi- popular among the staff. one of the very few secured terizes Puerto Rico bondhold-
tual offices. tower in Manhattan’s Tribeca dent Jamie Forese and other “There probably is the occa- creditors in the Puerto Rico ers. About 130 municipal-bond
The nation’s third-largest neighborhood into Citigroup’s executives are downtown. sional person who says, ‘I’ve debt structure, we expect that mutual funds had Cofina hold-
bank is making the shift to an headquarters, moving the The layout at the new head- Please see CITI page C6 our property rights will be pro- Please see PUERTO page C2
Holiday Season Isn’t Over Yet The world of investing is complex.

BY SPENCER JAKAB But it isn’t the only rea-
Postholiday Cheer son. The surge in the use of
’Twas the day after gift cards has made the days
Reasons for shopping on Dec. 26
Christmas and all through after Christmas a more im-
the house not a creature was Sales for portant period. Many are
stirring, not even a mouse. personal 38% spent in person rather than
And no wonder—they all purchases online since shipping costs The ultimate core holding for
went to the 25% make a $15 or $25 gift card
AHEAD OF mall.
Using gift cards
less valuable without a ser- institutional investors for over 20 years.
THE TAPE The day af- Sales for gifts 21% vice like Amazon.com Inc.’s
ter Christmas in 2016 Prime.
has changed Tradition 13% And those cards are less
from “the new Black Friday” likely to remain unspent
into a day that eclipses it in Return gifts 5% given the emergence of web-
terms of dollars spent and sites like Raise.com where
especially visits to shops. Source: American Express Spending & they can be redeemed for Visit SPDRs.com/spy
This makes it even more im- Saving Tracker cash. The discounts available
portant to wait until at least to buyers reflect the conve- Assets for SPY as of 09/30/2015 were $168B. The second largest ETF had assets of $ 64B as of 09/30/2015. Average daily
this week to start reaching people return to work. nience and liquidity of cer- trading volume over the past three months was over 147,924,961 shares as of 09/30/2015. Source: Bloomberg.
conclusions about what sort Christmas hasn’t fallen on tain cards and also the woes ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs net asset value.
of holiday shopping season it a Friday since 2004. of apparel retailers. For ex- Brokerage commissions and ETF expenses will reduce returns.
has been. This year it could Another reason is that ample, the biggest discounts,
There can be no assurance that a liquid market will be maintained for ETF Shares.
be one for the record books many people like to shop af- over 35% two days before
for a confluence of reasons. ter Christmas. Some two- Christmas, were from Dress The SPDR ® S&P 500 ® ETF Trust is an exchange traded fund designed to generally correspond to the price and yield
performance of the S&P 500 Index.TM
One is the calendar. In thirds of those surveyed by Barn and Claire’s. The lowest
Britain and the Common- the American Express Spend- were from Amazon.com, SPDR ®, S&P and S&P 500 are registered trademarks of Standard & Poor’s Financial Services LLC (S&P) and have been
wealth, Boxing Day is a holi- ing & Saving Tracker this Chevron and supermarket licensed for use by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed,
sold or promoted by S&P, S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their respective affiliates
day and was when servants year said they would shop chain Kroger.
and third party licensors and none of such parties make any representation regarding the advisability of investing in
traditionally received gifts. on Dec 26. That compares So forget what early such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of
While it isn’t an official day with just 45% who expressed gauges of the holiday shop- any index.
off in the U.S., it happens to an intention to shop on ping season said. The dust
ALPS Distributors, Inc. is distributor for SPDR S&P 500 ETF Trust, a unit investment trust. ALPS Distributors, Inc. is
fall on a Saturday this year, Black Friday. The main rea- has only just settled. not affiliated with State Street Global Markets, LLC.
yielding two shopping days son was the likelihood of
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a
after Christmas before many finding deals. Email: tape@wsj.com
prospectus or summary prospectus, which contains this and other information, call 1.866.787.2257 or visit
www.spdrs.com. Read it carefully.
INDEX Closed-End Funds........................................ C5 Financial Flashback..................................... C4 Heard on the Street.................................... C6 IPO Spotlight............................................ C4 IBG-16247 Not FDIC Insured • No Bank Guarantee • May Lose Value
Borrowing Benchmarks.................... C4 Currencies........................................................... C2 Global Finance................................................. C3 Insider Trading Spotlight........................ C6 Ticker.............................................................. C2
C2 | Monday, December 28, 2015 THE WALL STREET JOURNAL.
MOVING THE MARKET

THE TICKER |
Market events coming this week
Monday Thursday
No major events are The bond market closes
scheduled early at 2 p.m. EST but
stocks will have a full
Tuesday session
Consumer Confidence Initial jobless claims
Nov., previous 90.4 Previous 267,000
Dec., expected 93.3 Expected 271,000
Wednesday EIA report: natural gas

Previous change in stocks in
Mort. bankers indexes billions of cubic feet
Purchase, previous up 4% down 32
Refinan., previous up 11%
Chicago PMI
DAVID PAUL MORRIS/BLOOMBERG NEWS

EIA status report Nov., previous 48.7
Previous change in stocks in Dec., expected 50
millions of barrels
Crude oil down 5.9
Gasoline up 1.1
Friday
Distillates down 0.7 New Year’s Day
U.S. markets are closed
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T IN-

CLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES) ADJUSTED
FOR STOCK SPLITNOTE: FORECASTS ARE FROM DOW JONES WEEKLY
SURVEY OF ECONOMISTS
A jobs fair last month in San Jose, Calif. The Labor Department is scheduled to report initial jobless claims Thursday. A total of 271,000 is expected.
STOCKS in the S&P 500 on a daily clos-

ing basis, the most for a De-
cember since 2008. An aver-
age of 7.8 billion shares have
turn to the lender. Short inter-
est reflects the number of
shares that have yet to be re-
purchased to give back to
Nasdaq Outperforms Rivals
Continued from the prior page changed hands daily in the lenders and often is consid- While the Dow industrials shares of Amazon.com have
try not to take risk,” said Mo- U.S. stock market over the ered an indication of the level and S&P 500 limp into the end more than doubled.
hit Bajaj, director of exchange- same period, well above the of skepticism in the market. of the year, the Nasdaq has a Energy companies, which
traded fund trading solutions year-to-date average and the Many money managers spring in its step. the Nasdaq largely lacks, are
at broker WallachBeth Capital average U.S. stock-trading vol- were selling securities that The tech-heavy Nasdaq on track to end 2015 down 22%
LLC. “This year we have the ume the past three Decem- have suffered big losses dur- Composite is up 6.6% so far in in the S&P 500.
Fed decision and, compounded bers, when 6.1 billion shares ing the year to create a tax 2015. At the same time, the In the past several years,
with the move in oil, it’s basi- changed hands a day. On Dec. deduction against their cli- broad-based S&P 500 is on the Nasdaq Composite often
cally forcing people to trade 18, 11.8 billion shares changed ents’ incomes or offset gains track to rise 0.1% and the Dow outperformed the S&P 500 and
rather than holding their posi- hands, the second-biggest vol- from selling other securities. Jones Industrial Average is on the Dow Industrials, but this
tions into year-end.” ume day of the year. By selling these decliners, the pace to end down 1.5%. year is particularly lopsided.
The S&P 500 is up about Some investors were selling total tax bill for individual in- The Nasdaq’s outperfor- “Because it doesn’t contain
BAO DANDAN/ZUMA PRESS
0.1% so far in 2015, while the positions tied to junk bonds or vestors can go down signifi- mance stems from a confluence many energy-related companies,
Dow Jones Industrial Average commodities that in other cantly. of strong gains from a few of that helps,” said Mr. Pavlik.
is down 1.5%. The total return years they might have kept, Chad Carlson, director of the largest components in the As long as the price of oil
for the S&P 500, which infor fear the pain could get research at Balasa Dinverno index, including Amazon.com remains near multiyear lows,
cludes dividend payments, is even worse, money managers Foltz, a wealth-management and Netflix, along with the in- the Nasdaq may continue to
2.4%. In the same period last and traders said. firm based in Itasca, Ill., said dex’s lack of significant expo- outperform other broad-based
year, the S&P had risen 13% Other investors looked for as stock-market losses deep- sure to the beleaguered energy indexes going forward, some
and its total return was 15%. ways to eke out returns. Risk- Janet Yellen’s Fed raised rates. ened, he saw more opportuni- sector. analysts say.
“People are more anxious,” ier exchange-traded funds that ties for tax-loss selling. He “Some of the big Nasdaq The Nasdaq hasn’t been
said Ian Winer, director of eq- use borrowed money to in- cline have been on the rise. said he traded more than names—Amazon, Google and without its share of setbacks in
uity trading at Wedbush Secu- crease the size of bets at- Short interest rose to a four- usual this December as a re- Netflix—those stocks have 2015. In August, the index tum-
rities. “This year there is more tracted more money. Investors year high of 3.1% as of Dec. 22, sult. powered the market forward bled 13% from its late-July
notable underperformance, have poured $7.3 billion into according to data provider “We’re trying to make lem- this year,” said Robert Pavlik, high, as shares of biotechnol-
and therefore we’re going to leveraged exchange-traded Markit. onade out of lemons,” he said. chief market strategist at Bos- ogy companies sold off sharply.
get increased volatility and funds so far this year, the big- Short sellers borrow stock Steve Dudash, president of ton Private Wealth LLC. “Peo- And the price increase of
volume this December than gest amount since 2008 and and sell it, betting the stock’s IHT Wealth Management in ple were looking for growth in some of the year’s biggest
normal.” almost four times as much as price will fall, bringing the op- Chicago, said it has been the a very low-growth economy.” gainers is keeping some inves-
Through Dec. 23, there have last year, according to FactSet. portunity to buy the shares busiest December he has ever Technology companies are tors away.
been 10 moves of 1% or more Bets on the market’s de- back at a lower price for re- seen as a financial adviser. one of the top-performing sec- “It is difficult for us to in-
In addition to selling cer- tors in the S&P 500, rising 5.1% vest in Amazon and Netflix”
tain stocks for tax-advantage for the year to date. Shares of because of their stock prices,
Fright to the Finish purposes, he was also getting Netflix are up 140%, while said Peter Tuz, president and
The S&P 500 has experienced more big moves than in recent Decembers. And investors are increasingly into the market to buy up portfolio manager at Char-
betting that stocks will fall in the future. some stocks that have been lottesville, Va.-based invest-
beaten up, including energy ment firm Chase Investment
Number of moves of 1% or more Average short interest majors such as BP PLC and Counsel. “They’re so expensive.
for S&P 500 in December of each year for S&P 500 companies*
KEVIN HAGEN FOR THE WALL STREET JOURNAL
Exxon Mobil Corp. He said We shy away from them,” he

8 up days 3.5% conversations with clients said of the two stocks.
6 5 up days 3.11% have been more time consum- “That said, I’m almost cer-
4 3.0
ing, as many were experienc- tain to find two or three pack-
2
ing their first annual loss in ages from Amazon on my door-
0 2.5
seven years. step and I’ll watch something
2
“With the fall in oil, the Fed on Netflix, so I’m a hypocrite,”
4 2.0
meeting and being in a said Mr. Tuz, who added he is
6
slightly down market for the planning to watch the film
8 down days 5 down days 1.5
first time in a long time, it “Home Alone” over the holi-
2000 ’02 ’04 ’06 ’08 ’10 ’12 ’14 2011 ’12 ’13 ’14 ’15 makes wrapping up the year days.
*Short interest tracks the percentage of shares outstanding on loan for negative bets Sources: FactSet; Markit (short interest) more difficult,” Mr. Dudash —Corrie Driebusch,
Note: 2015 performance data are through Dec. 23; short interest are through Dec. 22 THE WALL STREET JOURNAL. said. Nasdaq is lighting it up this year. Leslie Josephs
PUERTO
85
ture. The setup allows the is- lion. Municipal Market Analyt- tangling legal claims between
suer to avoid interest payments ics puts the figure closer to general-obligation and Cofina
until the debt matures much $17.5 billion, saying the bonds debt is likely to result in delay
later. increase in value as time goes and uncertainty. Puerto Rico’s
Continued from the prior page Some analysts say that by. power authority reached a con-
ings at the end of September, structure enabled the island to In 40 years, when the last sensus restructuring deal with
according to data from invest- dodge hard choices, piling a zero-coupon bonds mature, the creditors last week after more The number of days in 2015 that both the
ment researcher Morningstar long-term financial problem full payment to bondholders is than a year of talks.
Inc. Many creditors own gen- atop Puerto Rico’s immediate scheduled to be about $25 bil- “Gridlock will be compli- S&P 500 and U.S. crude prices have
eral-obligation debt, too. Bond crisis. lion—about one-quarter of the cated, time consuming, expen- closed lower
insurers also back billions of “This is a classic example of money borrowed through Co- sive, uncertain and result in less
dollars of Cofina debt, along how Puerto Rico got into this fina and two-thirds of the for investors rather than more,”
with other Puerto Rico bonds. mess,” said Sergio Marxuach, amount owed, that research said James Spiotto, managing
About $4 billion of the Co-
fina debt was sold as zero-cou-
public-policy director at the
Center for a New Economy, a
firm found.
Some say negotiations ulti-
director at the municipal-bond
consulting firm Chapman Stra-
Oil, Stocks Fall Together
pon bonds, which function like think tank in San Juan. mately will, and should, ensue tegic Advisors, which consults Oil and stocks may pull off a thus the rest of equities outside
savings bonds. Investors buy Those zero-coupon bonds over the Cofina bonds, as un- on financial restructuring. rare feat in the last week of the oil sector. But rising oil
the debt for less than face value make it hard to say exactly how 2015. The S&P 500 and the prices also tend to signal strong
and receive no interest pay- much Puerto Rico owes Cofina benchmark Nymex contract for economic growth, which is good
ments—instead collecting a investors, which the island says Currencies crude oil have both closed down for stocks.
larger amount when the bonds in different disclosures is either on 85 out of 248 trading ses- It is possible, though, that it
mature, often decades in the fu- $15.2 billion or $16.6 bil- U.S.-dollar foreign-exchange rates in late New York trading sions so far this year. If both is all random. A paper by the
US$vs, US$vs,
Federal Reserve Bank of Cleve-
MONEYBEAT
Thurs YTDchg Thurs YTDchg
Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) land found no conclusive link be-
Americas Vietnam dong .00004436 22541 5.4 tween the two assets and noted
Argentina peso .0756 13.2310 56.3 Europe close down in any one of the that they move in opposite di-
Brazil real .2530 3.9530 48.8 Czech Rep. koruna .04057 24.651 7.8 last four trading sessions, it rections as often as they move
Canada dollar .7235 1.3822 18.9 Denmark krone .1469 6.8066 10.6 would be the most in any year in tandem.
Chile peso .001428 700.20 15.4 Euro area euro 1.0965 .9120 10.3 since at least 1984, according to Here’s the twist, though:
Colombia peso .0003143 3181.38 33.9 Hungary forint .003465 288.56 10.3
data from The Wall Street Jour- That paper was from 2008.
Ecuador US dollar 1 1 unch Iceland krona .007744 129.14 1.2
Mexico peso .0580 17.2455 17.0 Norway krone .1149 8.7006 16.8 nal’s statistics group. Since the financial crisis, with
Peru new sol .2950 3.390 13.6 Poland zloty .2586 3.8663 9.1 As it is, the 85 days in 2015 the world’s central banks all
Uruguay peso .03355 29.8100 24.2 Russia ruble .01422 70.300 16.1 match the number of joint down pushing investors out on the risk
Venezuela b. fuerte .158590 6.3056 0.2 Sweden krona .1191 8.3937 7.5 days from 2012. In fact, the curve, the correlation between
Asia-Pacific Switzerland franc 1.0133 .9869 –0.7 numbers have been consistently the two has gotten stronger.
Turkey lira .3426 2.9185 25.0
Australian dollar .7264 1.3767 12.5 high in recent years, ranging The average number of days
Ukraine hryvnia .0435 22.9805 45.3
China yuan .1543 6.4801 4.4 from a low of 64 days in 2013 both oil and stocks closed down
UK pound 1.4911 .6706 4.5
Hong Kong dollar .1290 7.7516 unch
Middle East/Africa to a high of 85 in 2012. The av- for the 10 years before the fi-
India rupee .01516 65.947 4.6
MARTINEZ MONSIVAIS/ASSOCIATED PRESS
Indonesia rupiah .0000733 13635 9.7 Bahrain dinar 2.6497 .3774 0.1 erage since 2008 has been 74 nancial crisis was 53.
Japan yen .008304 120.42 0.6 Egypt pound .1277 7.8328 9.5 days. This year, the S&P 500 —Paul Vigna
Kazakhstan tenge .003031 329.94 80.4 Israel shekel .2575 3.8841 –0.3 has closed down 52% of the
Macau pataca
Malaysia ringgit
.1254 7.9738
.2329 4.2930
–0.2
22.5
Kuwait dinar
Oman sul rial
3.2966 .3033
2.5950 .3854
3.6
0.1
trading days. Oil has closed ONLINE
down 56% of the days.
New Zealand dollar .6811 1.4682 14.4 Qatar rial .2748 3.639 –0.1
4.0 unch
The relationship between oil For more
WSJ
Pakistan rupee .00954 104.850 Saudi Arabia riyal .2664 3.7532
Philippines peso .0212 47.133 5.4 South Africa rand .0655 15.2758 32.2 and stocks is complicated. MoneyBeat blog
Singapore dollar .7116 1.4053 6.0 What’s good for oil bulls— posts, go to
South Korea won .0008547 1170.03 7.0 Close Net Chg % Chg YTD%Chg namely, higher prices—tends to .COM blogs.wsj.com/
Sri Lanka rupee .0069560 143.76 9.6 WSJ Dollar Index 89.69 –0.28–0.31 8.03 be bad for the economy, and MoneyBeat
Taiwan dollar .03051 32.775 3.6 Sources: Tullett Prebon, WSJ Market Data Group
Thailand baht .02772 36.070 9.6
Gov. Alejandro García Padilla calls Puerto Rico’s debts unpayable.
THE WALL STREET JOURNAL. Monday, December 28, 2015 | C3
GLOBAL FINANCE
El Niño Bedevils Farmers Europe Biotech Draws
From cattle to coffee, weather patterns world-wide. Dak Lak province in Vietnam come down to a bit of luck. A
U.S. Venture Capital
After a third year of now have access to irrigation. newer variety of tree planted BY DENISE ROLAND For example, Adaptimmune
the effects of the drought in some parts of Aus- Earlier this year, the govern- over the past several years is Therapeutics PLC of Oxford,
weather pattern are tralia, drovers are using the ment pledged to improve and better able to withstand drier LONDON—U.S. venture-capi- England, and Seattle-based
farmland march to add some expand the current systems. conditions. tal firms are increasingly look- Juno Therapeutics Inc. are
deep and widespread weight to their cattle before Any progress would add to Yet even with these trees ing to invest in European bio- both developing treatments in
arriving at feedlots, where a World Bank program started and other measures to miti- technology companies, regaining a hot new area of cancer re-
BY LUCY CRAYMER they are fattened before last year to provide irrigation gate drought, Malaysian con- momentum that was shaken af- search known as immuno-on-
slaughter. Consolidated Pasto- and drainage to around glomerate Sime Darby Bhd. ter the global recession. cology. Both floated on Nasdaq
HONG KONG—Two thou- ral trucked a small proportion 206,000 acres of agricultural expects its yield to fall 8% to In a small but growing in the past year, with Adap-
sand of Troy Setter’s dark- of its 375,000-cattle herd from land by 2020. It has completed 10%, primarily in Indonesia, in number of European deals this timmune fetching an initial
haired cattle have been trek- western Queensland state around 14% of this so far. the 12 months through June 30 year, U.S. investors have public valuation of $1.2 billion,
king along centuries-old paths south to Goondiwindi where “Thanks to the good irriga- because of El Niño, according played a role. The number of around two-thirds of the $1.9
through isolated Australian they are being walked through tion systems that have been to a company spokeswoman. venture-capital rounds in Eu- billion reached by Juno, whose
farmland, chomping on grass the lush Narrabri region. The developed over the last 20 Many farmers are unable to rope involving at least one U.S. clinical programs are further
and roadside vegetation to fat- stock will then either be re- years and the fairly good man- do anything to prevent plants fund climbed from a low of along. Yet in the private fund-
ten up before slaughter. turned to the ranch if the agement of the irrigation, wilting before harvest or crops five in 2011 to 21 in 2014, ac- ing rounds preceding their
The migration recalls a by- drought ends or shipped to farmers have been able to failing throughout the region. cording to data analyzed by floats, Adaptimmune managed
gone era, but this is no nostal- feedlots in Indonesia. manage through the recent dry The Food and Agriculture Or- The Wall Street Journal from to raise only 40% of the
gic trip. The most severe El Drier conditions have also conditions,” said Cuong Hung ganization of the United Na- venture-capital database Ven- amount raised by Juno: $135
Niño in nearly two decades has challenged Asia’s coffee grow- Pham, who oversees various tions already expects global tureSource. Last year’s total, million, compared with $335
parched eastern Australia, ers, but preparation has paid irrigation projects for the rice production to contract in through November, came to 17. million.
leaving cattle short of feed. off. In Vietnam, irrigation sys- World Bank in Vietnam. 2015 due to the weather and it Those figures suggest a One investor emblematic of
The company Mr. Setter tems gradually installed since Even with these systems in could fall further depending on steady increase of U.S. venture the change is French-born Lio-
runs as chief executive, Con- the 1990s have helped farmers place, the Vietnam Coffee-Co- El Niño’s impact over the com- capital coming into Europe
solidated Pastoral Co., has offset the effects of weak rain- coa Association said it expects ing months. The Australian over the past five years, in
embraced an age-old ranching fall over most of 2015, said Au- output to fall 10% over the government had to downgrade contrast with the preceding
Private fundraisings
tradition to overcome some of relia Britsch, an analyst at BMI year to Oct. 1, partly because expectations of a bumper decade when investments from for European biotech
the business disruptions El Research in Singapore. of dry weather. wheat crop after a lack of rain- across the pond fluctuated
Niño is causing. Other farmers About one-quarter of the 1.1 For some oil-palm growers fall in the weeks before har- from year to year.
companies tend to be
are benefiting from past prep- million acres of coffee trees in in Indonesia, meanwhile, it has vest hit yields. One draw of Europe is that lower than stateside.
arations for dry spells or sim- its biotech companies typically
ple luck, but, broadly, crop fetch lower valuations than
yields are down, including rice, their stateside counterparts at nel Carnot, who arrived in San
the region’s staple food. the point of entry for a VC, yet Francisco just as the city’s
Since May, El Niño has command similar prices at venture-capital scene was on
brought high temperatures and exit—typically an acquisition the cusp of revival in 2005 but
lower-than-normal rainfall to by a large pharmaceutical quickly turned his attention to
eastern Australia, Southeast company. That situation cre- the Old World.
Asia and India. The drier con- ates “an arbitrage you can Within months of joining
ditions make it more costly work naturally,” said Nooman Bay City Capital LLC, he and a
and time-consuming to pro- Haque, director at Silicon Val- colleague launched themselves
duce many agricultural prod- ley Bank. into an effort to scope out in-
ucts, a factor that has driven In the U.S., strong momen- vestment opportunities in Eu-
up prices in the latter half of tum in biotech stock prices rope. The pair spent years
2015. Futures of agricultural has trickled down to increase tirelessly crossing the Atlantic,
PETER PARKS/AGENCE FRANCE-PRESSE/GETTY IMAGES
commodities have risen since the valuations that can be building relationships and
June, with Malaysian palm oil achieved in private funding knowledge. In 2010, they fi-
up 9.6% and raw sugar 25% rounds for younger companies. nally took the plunge, colead-
higher. In Europe, there are fewer ing a €21.7 million ($23 mil-
Other regions have bene- specialist health-care investors lion) round for Merus NV, a
fited from the weather system. and the public markets are Dutch biotech developing new
In South America and the U.S., more subdued: The average cancer therapies.
El Niño has brought ideal con- market capitalization of a pub- It was a combination of
ditions to the region, support- licly listed biotech company in “top-quality innovation” with
ing bumper grain crops. the U.S. is $2.1 billion, com- a “venture environment eager
El Niño occurs when winds pared with $900 million in Eu- for deep-pocketed American
in the equatorial Pacific slow rope, Mr. Haque said. co-investors” that convinced
down or reverse direction. That, in turn, means private Mr. Carnot of Europe’s signifi-
That warms water over a vast fundraisings for European bio- cant investment opportunities,
area, which can upend normal El Niño has parched farmland across Australia, driving up prices for some agricultural products. techs tend to be lower. he said.
The people have spoken.

And by spoken we mean
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MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
Last Year ago Last Year ago
17552.17 s 423.62, or 2.47% last week Trailing P/E ratio * 16.76 16.85 2060.99 s 55.44, or 2.76% last week Trailing P/E ratio * 22.95 19.48 Public Offerings of Stock
High, low, open and close for each of P/E estimate * 16.18 15.71 High, low, open and close for each of P/E estimate * 17.47 17.15
the past 52 weeks Dividend yield 2.53 2.16 the past 52 weeks Dividend yield 2.14 1.92 IPOs in the U.S. Market
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15
None expected this week
Current divisor 0.14602128057775

18500 65-day moving average 2150 Lockup Expirations
200-day moving average Below, companies whose officers and other insiders will become eligible
18000 2100 to sell shares in their newly public companies for the first time. Such
sales can move the stock’s price.
Lockup Offer Offer amt Through Lockup
17500 2050 expiration Issue date Issuer Symbol price($) ($ mil.) Thurs (%) provision
Dec. 28 July 1, ’15 Natera Inc NTRA 18.00 196.2 –37.4 180 days
17000 2000 Sources: Dealogic; WSJ Market Data Group
Week's high 200-day moving average

16500 1950 IPO Scorecard
DOWN UP
Performance of IPOs, most-recent listed first
t
Monday's open Friday's close 65-day moving average % Chg From % Chg From
Friday's close Monday's open 16000 1900 Company SYMBOL Thur3s Offer 1st-day Company SYMBOL Thur3s Offer 1st-day
t
IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Yirendai 9.50 –5.0 4.4 Mimecast 9.87 –1.3 –2.3
Week's low YRD Dec. 18/$10.00 MIME Nov. 19/$10.00
15500 1850
Atlassian 28.21 34.3 1.5 Square 12.60 40.0 –3.6
Bars measure the point change from Monday's open TEAM Dec. 10/$21.00 SQ Nov. 19/$9.00
15000 1800
Axsome Thera 8.67 –3.7 –0.8 Instructure 22.64 41.5 25.8
D J F M A M J J A S O N D D J F M A M J J A S O N D
AXSM Nov. 19/$9.00 INST Nov. 13/$16.00
Primary Duluth Hldgs 14.47 20.6 6.0 Mesoblast 6.51 –18.6 –19.7
NYSE weekly volume, in billions of shares market Composite
t
t
Financial Flashback DLTH Nov. 19/$12.00 MESO Nov. 13/$8.00

30 17.4 4.16 –16.8 –16.8
20 The Wall Street Journal, December 28, 2005 Match Grp
MTCH Nov. 19/$12.00
14.09 –4.4 Xtera Comm
XCOM Nov. 13/$5.00
10 InBev named Carlos Brito chief executive as the world’s
Sources: WSJ Market Data Group; FactSet Research Systems
0 biggest beer company by volume seeks to boost mature-
D J F M A M J J A S O N D market sales with more direct sales to bars and stores.
* P/E data based on as-reported earnings from Birinyi Associates Inc. Other Stock Offerings
Secondaries and follow-ons expected this week in the U.S. market
Major U.S. Stock-Market Indexes Nasdaq Composite
None expected this week
Latest Week 52-Week Range % chg s 125.41, or 2.55%
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann.
Dow Jones
last week
Off the Shelf
Industrial Average 17607.92 17116.73 17552.17 423.62 2.47 15666.44 l 18312.39 -2.7 -1.5 10.1 None expected this week
Transportation Avg 7652.80 7376.68 7622.61 258.57 3.51 7364.04 l 9217.44 -17.0 -16.6 12.7
5050
Utility Average 582.72 563.91 581.02 13.08 2.30 541.97 l 652.11 -7.6 -6.0 8.4
Total Stock Market 21355.55 20713.20 21288.74 576.25 2.78 19528.72 l 22287.78 -1.6 -0.6 12.8 Public and Private Borrowing
Barron's 400 525.77 509.00 523.61 15.11 2.97 497.51 l 586.75 -3.8 -3.2 12.9 5000
Treasurys
Nasdaq Stock Market
4950 Monday, December 28 Tuesday, December 29
Nasdaq Composite 5063.28 4928.93 5048.49 125.41 2.55 4506.49 l 5218.86 5.8 6.6 18.8
Nasdaq 100 4635.59 4519.82 4622.77 107.95 2.39 4016.32 l 4719.05 7.9 9.1 20.3 Auction of 13-week & 26-week bills; Auction of five-year notes;
4900 announced on Dec.24; settles on Dec.31 announced on Dec.24; settles on Dec.31
Standard & Poor's 17 18 21 22 23 24
500 Index 2067.36 2005.93 2060.99 55.44 2.76 1867.61 l 2130.82 -1.0 0.1 13.0 December Auction of two-year notes; Auction of four-week bills;
MidCap 400 1420.40 1375.22 1416.10 40.83 2.97 1351.29 l 1549.44 -3.2 -2.5 11.5 DJ US TSM announced on Dec.24; settles on Dec.31 announced on Dec.28; settles on Dec.31
SmallCap 600 686.62 663.00 683.25 20.57 3.10 641.76 l 742.13 -1.7 -1.7 12.9 s 576.25, or 2.78% Wednesday, December 30
Other Indexes last week
Auction of seven-year notes;
Russell 2000 1159.71 1120.61 1154.76 33.74 3.01 1083.91 l 1295.8 -4.3 -4.1 11.0
announced on Dec.24; settles on Dec.31
NYSE Composite 10290.36 9961.05 10258.55 290.90 2.92 9601.42 l 11239.66 -6.4 -5.4 6.8
Value Line 454.32 436.84 452.77 15.93 3.65 431.31 l 522.42 -10.3 -9.9 7.3 21250
NYSE Arca Biotech 3833.35 3682.88 3820.62 126.47 3.42 3303.47 l 4431.87 12.3 11.1 35.1 Public and Municipal Finance
NYSE Arca Pharma 546.79 532.27 545.36 12.61 2.37 509.74 l 605.94 1.7 2.4 13.8 21050 Deals of $ 150 million or more expected this week
KBW Bank 74.48 71.82 74.13 2.16 3.01 66.40 l 80.41 -0.9 -0.2 13.2 Final Total Rating Bookrunner/
PHLX§ Gold/Silver 48.00 45.10 47.81 3.27 7.34 43.21 l 82.07 -28.2 -30.5 -33.2 Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
20850
PHLX§ Oil Service 165.36 151.01 163.17 10.05 6.56 153.12 l 224.32 -23.5 -22.6 -9.4
PHLX§ Semiconductor 676.70 657.52 674.39 20.67 3.16 559.59 l 746.08 -3.2 -1.8 20.6 Jan. 1 prelim. Florida 1,750.0 N.R. N.R. N.R. BoA Merrill/—
CBOE Volatility 20.21 14.45 15.74 -4.96 -23.96 11.95 l 40.74 9.5 -18.0 -4.1 20650 Development
17 18 21 22 23 24 Fin
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group December
Source:Thomson Reuters/Ipreo
International Stock Indexes Corporate Debt

Commodities and
Expected this week
Region/Country Index Close
Latest Week
% chg Low
52-Week Range
Close High
YTD
% chg
Currencies
Last Week YTD Expected Years to Deal value Rating
Close Net chg %Chg % chg wk ending Issuer/Business maturity ($ mil.) Fitch Moody’s S&P Bookrunner(s)
World The Global Dow 2358.19 2.63 2200.33 • 2639.52 –5.7
Dec. 1 Santander Holdings USA A- Baa2 - Citi, JPM,
DJ Global Index 309.98 2.33 288.56 • 341.62 –3.4 DJ Commodity 452.86 6.23 1.39 -19.21
HoldingcompanyforSovereignBank. — Santander, UBS
DJ Global ex U.S. 211.15 1.88 199.02 • 246.68 –6.2 Reuters-Jefferies CRB 176.09 3.94 2.29 -23.42
Global Dow Euro 2026.26 1.56 1846.63 • 2305.98 4.1 Crude oil, $ per barrel 38.10 2.04 5.66 -28.48
Dec. 28 NGL Enrgy Partnerrs
Owns and operates vertically- HY
$300.0 BB- - - BofAML,RBCCptlMkts, DB,PNC,
BNPParibas,WFS,Barclays, GS,
DJ TSM Global 3187.84 2.33 2969.78 • 3510.20 –3.3 Natural gas, $/MMBtu 2.029 0.262 14.83 -29.77
integrated propane business. Mizuho,UBS,HSBC,SunTrust,MitsubishiUFJ
Global ex U.S. 2131.06 1.85 2010.51 • 2482.77 –6.0 Gold, $ per troy oz. 1077.20 11.00 1.03 -9.01
HY- High-yield index Source: Dealogic
Developed ex U.S. 2114.17 1.91 1987.52 • 2403.18 –3.6
U.S. Dollar Index 97.92 -0.81 -0.82 8.46
Global Small-Cap 4231.97 2.16 3997.48 • 4716.91 –2.1
89.69 -0.58 -0.65 8.03
Global Large-Cap 3035.45 2.35 2821.87 • 3337.56 –3.5 WSJ Dollar Index
Borrowing Benchmarks | WSJ.com/bonds
Euro, per dollar 0.9120 -0.0081 -0.88 10.34
Americas DJ Americas 491.85 2.71 454.62 • 524.44 –3.0
120.42 -0.73 -0.60 0.58
Brazil Sao Paulo Bovespa 44014.93 0.24 43199.95 • 58051.61 –12.0 Yen, per dollar
Money Rates December 24, 2015
Canada S&P/TSX Comp 13309.80 2.19 12695.49 • 15450.87 –9.0 U.K. pound, in dollars 1.49 0.00 0.10 -4.28
Mexico IPC All-Share 43528.27 1.38 40950.58 • 45773.31 0.9 52-Week Range Key annual interest rates paid to borrow or lend money in U.S. and
Chile Santiago IPSA 2923.77 0.79 2826.03 • 3359.04 –7.6 Low Close(l) High % Chg
international markets. Rates below are a guide to general levels but
Europe Stoxx Europe 600 366.28 1.40 331.61 • 414.06 6.9 DJ Commodity 441.41 l 584.70 -20.70 don’t always represent actual transactions.
Stoxx Europe 50 3108.11 1.40 2897.12 • 3591.47 3.5 Reuters-Jefferies CRB 170.70 l 235.34 -25.18
Inflation
Eurozone Euro Stoxx 346.05 0.82 307.77 • 392.35 8.3 Crude oil, $ per barrel 34.73 l 61.43 -31.77 Nov. index Chg From (%)
Week
Latest ago
—52-WEEK—
High Low
Euro Stoxx 50 3284.47 0.73 3007.91 • 3828.78 4.4
Natural gas, $/MMBtu 1.76 l 3.23 -33.04 level Oct. '15 Nov. '14
Belgium Bel-20 3691.71 1.18 3190.24 • 3905.71 12.4
Gold, $ per troy oz. 1050.80 l 1300.70 -8.21
Commercial paper
France CAC 40 4663.18 0.82 4083.50 • 5268.91 9.1 U.S. consumer price index 30 to 270 days n.q. ... ... ...
Germany DAX 10727.64 1.13 9427.64 • 12374.73 9.4 U.S. Dollar Index 89.92 l 100.20 8.89
All items 237.336 –0.21 0.5
Commercial paper (AA financial)
Israel Tel Aviv 1517.44 –0.11 1446.41 • 1723.56 3.6
WSJ Dollar Index 82.46 l 90.86 8.76
Core 244.075 0.04 2.0
90 days 0.58 0.58 0.64 0.06
Italy FTSE MIB 21456.36 1.01 18123 • 24031 12.9
International rates
0.95 11.50
Netherlands AEX 444.12 2.30 408.43 • 509.24 4.6 Euro, per dollar 0.82 l
Week 52-Week
Euro commercial paper
Spain IBEX 35 9682.90 –0.35 9291.4 • 11866.4 –5.8 Yen, per dollar 116.17 l 125.62 0.26 Latest ago High Low
30 day n.q. -0.07 -0.02 -0.12
Sweden SX All Share 502.81 1.48 462.48 • 564.90 6.1 U.K. pound, in dollars 1.46 l 1.59 -4.17 Two month
Three month
n.q. n.q. -0.01 -0.09
n.q. n.q. 0.01 -0.08
Switzerland Swiss Market 8705.74 1.12 7899.59 • 9526.79 –3.1
Real-time U.S. stock
Prime rates
Four month n.q. n.q. 0.02 0.00
U.K. FTSE 100 6254.64 3.34 5874.06 • 7103.98 –4.7 U.S. 3.50 3.50 3.50 3.25
WSJ
Five month n.q. n.q. 0.04 0.01
quotes are available on Canada 2.70 2.70 3.00 2.70
Asia-Pacific DJ Asia-Pacific TSM 1381.49 1.17 1269.58 • 1619.39 –3.1
WSJ.com. Track most- Japan 1.475 1.475 1.475 1.475
Six month n.q. n.q. 0.06 0.02
Australia S&P/ASX 200 5207.60 1.98 4909.6 • 5982.7 –3.8
.COM active stocks, new Libor
China Shanghai Composite 3612.49 0.94 2927.29 • 5166.35 11.7
highs/lows, mutual
Policy Rates
One month 0.42190 0.36000 0.42190 0.16625
Hong Kong Hang Seng 22138.13 1.76 20556.60 • 28442.75 –6.2
funds and ETFs.
Euro zone 0.05
0.50
0.05
0.50
0.05
0.50
0.05
0.50
Three month 0.60310 0.53250 0.60310 0.25110
India S&P BSE Sensex 25838.71 1.25 24893.81 • 29681.77 –6.0 Switzerland
Britain 0.50 0.50 0.50 0.50
Six month 0.82730 0.76990 0.82750 0.35390
Japan Nikkei Stock Avg 18789.69 –1.04 16795.96 • 20868.03 7.7 Plus, get deeper money-flows data and Australia 2.00 2.00 2.50 2.00
One year 1.14750 1.08350 1.14750 0.60990
Singapore Straits Times 2877.62 0.87 2787.94 • 3539.95 –14.5 email delivery of key stock-market
Euro Libor
South Korea Kospi 1990.65 0.78 1829.81 • 2173.41 3.9 data. Overnight repurchase
One month -0.204 -0.199 0.012 -0.206
Taiwan Weighted 8324.36 0.81 7410.34 • 9973.12 –10.6 All are available free at
U.S. 0.34 0.24 0.41 0.07
Three month -0.127 -0.123 0.059 -0.129
Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com U.S. government rates Six month -0.038 -0.030 0.146 -0.058
One year 0.059 0.058 0.296 0.031
Discount
Consumer Rates and Returns to Investor Benchmark Yields and Rates 1.00 1.00 1.00 0.75 Euro interbank offered rate (Euribor)
One month -0.201 -0.198 0.025 -0.201
U.S. consumer rates Selected rates Treasury yield curve Forex Race Federal funds Three month -0.131 -0.133 0.080 -0.133
Effective rate 0.3600 0.3800 0.3800 0.0600 Six month -0.040 -0.041 0.173 -0.051
A consumer rate against its 30-year mortgage, Rate Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs. One year 0.060 0.059 0.328 0.039
High 0.5600 0.5900 0.5900 0.2500
benchmark over the past year notes and bonds major U.S. trading partners Low 0.2700 0.2900 0.3000 0.0100
Bankrate.com avg†: 4.06% Value 52-Week
20% Bid 0.3200 0.3500 0.3500 0.0000 Latest Traded High Low
California Home Lending 3.75% 5.00% Offer 0.5000 0.3800 0.5200 0.0500
4.00% 15 DTCC GCF Repo Index
t Rancho Santa Margari, CA 866-724-7769
4.00 10 WSJ Dollar index
s Treasury bill auction Treasury 0.539 105.400 0.539 0.059
30-year fixed-rate RockBottom Mortgage 3.75% 5 MBS 0.556 83.300 0.670 0.075
3.00 4 weeks 0.195 0.205 0.235 0.000
mortgage Des Plaines, IL 855-219-4661 3.00 0 13 weeks 0.250 0.280 0.280 0.000 Open Implied
Sterling Home Mortgage 3.75% –5 s 26 weeks 0.515 0.585 0.585 0.065 Settle Change Interest Rate
t 2.00 Yen
2.00
10-year Treasury Palatine, IL 888-234-2440 –10 DTCC GCF Repo Index Futures
note yield 1.00 Thursday 1.00 –15 Secondary market
3.88%
t
EmpireAmerica s Treasury Dec 99.635 -0.020 6288 0.365

One year ago Euro
t
Woodland Hills, CA 866-411-3621 –20 Fannie Mae Treasury Jan 99.565 unch. 9208 0.435
0.00 0.00 –25
Garden State Home Loans 3.88%
30-year mortgage yields Treasury Feb 99.565 -0.005 5464 0.435
J FMAM J J A S O N D 1 3 6 1 2 3 5 710 30
Cherry Hill, NJ 2015 30 days 3.593 3.555 3.750 3.024
2015 (609) 216-7912 month(s) years Weekly survey
60 days 3.631 3.591 3.788 3.080
Yield/Rate (%) 52-Week Range (%) 3-yr chg maturity Latest Week ago Year ago
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Other short-term rates
Week 52-Week
Freddie Mac
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25
Prime rate* 3.50 3.50 3.25 l 3.50 0.25
Corporate Borrowing Rates and Yields Latest ago high low 30-year fixed
15-year fixed
3.96
3.22
3.97
3.22
3.83
3.10
Libor, 3-month 0.60 0.53 0.25 l 0.60 0.29 Spread +/- Treasurys, Call money Five-year ARM 3.06 3.03 3.01
Yield (%) in basis pts, 52-wk Range Total Return
Money market, annual yield 0.27 0.26 0.25 l 0.44 -0.24 2.25 2.25 2.25 2.00 One-year ARM 2.68 2.67 2.39
Bond total return index Last Wk ago Last Low High 52-wk 3-yr
Five-year CD, annual yield 1.39 1.38 1.37 l 1.53 0.03
10-yr Treasury, Ryan ALM 2.241 2.236 2.16 1.44 Notes on data:
30-year mortgage, fixed† 4.06 3.99 3.71 l 4.22 0.47
DJ Corporate 3.414 3.425 0.69 2.05 U.S. prime rate is effective December 17, 2015.
15-year mortgage, fixed† 3.30 3.22 2.94 l 3.42 0.33
Aggregate, Barclays Capital 2.580 2.570 58 42 61 1.03 1.50 Discount rate is effective December 17, 2015.
Jumbo mortgages, $417,000-plus† 4.52 4.49 4.00 l 4.97 0.40 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks;
High Yield 100, Merrill Lynch 7.843 7.800 611 374 636 -5.338 1.308
Five-year adj mortgage (ARM)† 3.55 3.55 3.14 l 4.00 0.50 Other prime rates aren’t directly comparable; lending practices vary widely by location;
Fixed-Rate MBS, Barclays 2.800 2.770 30 13 44 1.67 2.01 DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in
New-car loan, 48-month 3.22 3.21 2.71 l 3.33 0.40
Muni Master, Merrill 1.760 1.783 4 -10 7 3.253 2.835 applicable CUSIPs. Value traded is in billions of U.S. dollars.
HELOC, $30,000 4.59 4.54 4.24 l 4.71 -0.05 Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US.
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 6.711 6.674 450 359 483 1.073 -0.027
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
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 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
THE WALL STREET JOURNAL. Monday, December 28, 2015 | C5
MONEY & INVESTING ADVERTISEMENT
Legal Notices
India Forecasts Lack Accuracy To advertise: 800-366-3975 or WSJ.com/classifieds
BANKRUPTCIES
BY SHEFALI ANAND history. “If the Sensex went up Group Inc. said the Nifty
last year, then on the back of would touch 9500 and UBS
(+ ) 7 : ) ,( # A 0& @ @(
1+ ( )1 ) + # A CB" "0 + "CB& ( +,+
It’s that time of the year, that, everybody will be pre- Group AG predicted that it , -2 * ,- 5) + (2 ( F2( !% !" 3!" $%'$"*
when analysts make predic- dicting a higher number” and would be at 9600 by now. The

!"! #$%& :; :9;< - ,* 2 @( 7 ( 1(- 5)(6 7 21
#'()*
+,((+& (2
tions about how Indian stocks vice versa, said Arun Jeth- Nifty closed at 7861.05 on - 7 5)(6 )+(6 ( 2 ++ 7 >A
-2* - ( >@)(6 E @ A @ A ///?
* ,*

will perform next year. But, malani, managing director of Thursday, some 17% to 20% ) 5) )+(6 >A-2* -: 2-, ()(6 *, #& *
2,)(6 + -,((6 )2(2 ()(6 6(( , 1())
with their dismal track record ValueNotes Strategic Intelli- lower than the forecasts.
'-)* ./ 0/ 1 2(+ + + + (
>A-2* -: @( 4445%*#5'#)!'" #50!1
0 5,( (6 ,* 2(-+ 7, (, (, @(-
from last year, should they gence Pvt. Ltd., a Pune-based Goldman Sachs remains ( #2))2(1)* 3 !"#4& 2,,2+ 2 * 5)(6 1)-* 7- (2 -2, 7 +F-+ +
(( 7 )(7 -+ 2 7 () 7 8(+ + #
bother? market-research firm. “What bullish, though it is lowering 3
$%&"'( )* !+4&
5,( (6 * 2(-+ (6
+ 2, 0. 0/ DD ( (* > (6) <
After Indian markets rose they’re trying to do is impos- its expectations, now saying 0 ( 7 (2)- , + (2)-+(6 9) +
(2)- , 1()) : ; - <-
(2+ %* < ( (* < #+,(+
& '

000 ? @ A //C ) #00& .0B .!.! ;
30% in 2014 and investors sible.” the market will be closer to )( 2 = ,* 2 )(1(* ( )
>))
92(6 9 >; 0/.? $-* ()) ( @ A /B /C/
#00& C C./B + (6
%)7 < $)( ' +,( >)A G
were expecting big reforms in Between their optimistic 9000 at the end of next year. ++(( * * ,* 1(@ (2)- , + >(+
%)7 < 99
$8 =
$9 9 ./ 2A7))
9)I @ A /0 ) #00& B. "C// ; #00& B. "C/
+(6 92+- + (2)-+(6 >(++(6 92+- 9) +
!
"
"
#

the economy, analysts were forecasts and the market’s “We estimate India to deliver (2)- , + )+ ;(( @(- 26 1( (
( 2 2 )6 @( ) 7- +(6( 7
bullish going into 2015. All weak performance, investment 13% in dollar terms, the high- DD@@@+)(22,D)(D,D9)76 1, "
0/ 5)+ #&

2 : 7+) ; (+(52( -, )(1(* (
#?C&H )(1(* )+(6 #C/0&H )(1(* $+( #/"??&H )(1(*
major global brokerage firms banks such as Citigroup Inc., est in Asia,” said Tushar Pod-

#A !!0& # ( ,* ,++
,+(5+ 3 ,$%4&0 + #&

#B.&H $ ((-( ,(2 #B0"&H $ ((-(
predicted the market would Bank of America Merrill dar, Goldman’s India econo-

#A
() #BC?!&H $ (2(6 #!?&H 0 = 1 9+-2
( #CC!B&H . * G()) 9+-2( #C?C&H
972 E@*
!!& @(2 @ 1(+ 1, 0/ 0/ # ( ,* 7-
rise 15% to 20% this year. Lynch, Deutsche Bank AG and mist, at a recent news ,++ ,+(5+ 3-#),!#'" $ .% 4&
9 #!00&H
972 E@* #.!.!&H
,+ 9+-2(
#0C/&H > 7 $ 9+-2( #?!/&H >)2A %( (),
However, with just a few Morgan Stanley missed their briefing. Spokesmen for Gold- .
(6 2(+ 25,( 7 9) # 3!%/".$ -!%
$"-%04& @()) )+ 7 ) $(2) %() 8(+
#BC"&H >)2A(+ 9+-2( #"/.C&H > 9( 9+-2(
#!!!?&H >(2A $(
2<-((( #.!/&H >())( (), #/??"&H
trading days left, India’s S&P targets by more than 20%. The man Sachs, Citigroup, >A-2* '-+6 ( -, BC 8(+ >A-2* - > 9+-2( #!!./&H > 1(2(6 #"?!&H 5
7 - ((2 7 @ A >@)(6 E @ A ///?
BSE Sensex is down 6%, while firms had expected the Sensex Deutsche Bank and UBS de- 6((6 /// , #91()(6 (,& -* 0/B
9+-2( #CC0"&H ( 9+-2( #".!&H (9 #"??/&H
(2 >2 $+( #"B0&H )(77 + $+( #C/B&H 7 (1
? 9-- + 7 >A-2* - ++ 2, C
the Nifty 50, the other major to be between 32500 and clined to comment on their 0/ #A ?/ + ?& # 3-#),!#'" $ .% "+"4 +
(), #./?B&H '
2<-((( #C!&H 9+-2(
#C"/.&H (( ) #"B&H 6)( >A7 $+( #00?/&H
index, is down 5.1%. 33000 by the end of this year, Nifty predictions. 3!,-)- $ -!% "!)+'"# "+"4 2(1)*& (2)- ,
+ 2( )+ ,() #2))2(1)* 3!,-)- $ -!% $ "-$,#4& 1
-2 (), #."&H E(
2<-((( #BB0&H E 9( 9+-2
( #".&H E-(+ (( (), #/.&H , $-(2
Critics say the market is and it closed ahead of Christ- Market analysts said that 1+ 7 )(2(( 7 1 22 F2 9) #.CC.&H , 9-)((6 #.CB0&H -,,2A 9+ 9(
9-- 9) ) > E + ' ()+ 1
too complex and driven by too mas on Thursday at 25838.71. more than the index target, 9)
#!"B0&H - G()) 9+-2( #!.!&H - G()) 9+-2(
#../&H 9+-2( #.?/&H '=' 9F2 #".0&H 'E
E
B )+ 7 )(, 6( 7 2, C 0/ #
many variables for people to Spokesmen for Citigroup, they focus on providing guid- 2+ )(+ * - ( (2)- , +& (

2<-((( #!00&H 7 >(+
2<-((( #.BC&H 6 9+
$+( #C!C&H $+A 9-)((6 #!.B&H $+A + $-(2
predict with any kind of accu- Bank of America and Deutsche ance about the trends that will ) ()+ 1 9) @()) 2(1 )(2(( 92A6
)(2(( 92A6 (2)-+ ,6 (6 )) 7, # 3
$,,! 4&
#!.0&H $+1( $ #/B?B&H $)1( 9+-2( #"B.B&H $>
9+-2( #??CC&H $2 7 6( 9+-2( #C//0&H $(
racy. “These market-timing Bank declined to comment on play out in the market. + 1(6 (-2( ( 7 -2 )(, @)) 2( 7 2, $+( #C.C&H $(2) 9+-2( #//&H $ %
9) + (2)- , + )+ )(2(( ,()
forecasts make for great news their Sensex predictions. Some “Targets are tools, not the C ++)( - 2,)+ >)) ( ?// , #91()(6
+7-) (, 9+-2( #/?0B&H $1( 9+-2( #!"B/&H (7

2<-((( #!/B&H 6 $+( #./"!&H - 7 ( %)+
(,& '-* 0/ 0/B # 3! -%0 $+,-%4&
* 7()-
stories but they are com- of these firms revised their endgame,” said Ridham Desai, 7))@ 1(6 (-2( (2)-++ @( >)) - )*
9+-2( #0.00&H 9(
2<-((( #"C?C&H 9,
2<-((
( #B."&H 92, 9+-2( #/B!&H )(1 $( $-(2
pletely and totally useless in Sensex targets downward dur- head of Indian equity research 2,)+ >)) ( ( ")-1+ * (6 +)( ,* +(<-)(7*
>)) !' $" %)!'"$0+ ! "$+ 2 1! -%0 -%# "') -!%# )$"3',,* $%+
#"/B&H )(1 )2(* $-(2 #CB!&H )(1(* 1),
#0!B&H )(1(* (), (2 #!/"0&H )(1(* (), (2
investing,” said Aswath Damo- ing the year. at Morgan Stanley. “Our job is "1-4 2 -#),!#'" $ .% 3!" 1! -%05 #""!.&H )(1(* (), (2 #00C&H )(1(* (), #?B?&H )
" 9-- 9) )
G + %! ()+ 1
daran, a finance professor at Some firms also had a tar- really to provide a framework 9)
(1(* (6 #"!!.&H )(1(* +( )+(6 #"!0&H )(1(* '2A
#BB&H )(1(* $+( ((-( #/0B?&H )(1(* $+(
! % )!%%) -!% 4- 2 )!%/".$ -!% !3 2 ,$% 2 !"# $" #&6
New York University. get for the Nifty index. Citi- to investors so that they can -%0 $(("!1$, !3 )" $-% ",$## -%),'+-%0 ",$## !3 )" $-% %!%+ !"
(), #C?&H )(1(* $-(2 E- #!?/&H )(1(* 9+-2(
#C"!&H )(1(* 6- #....&H )(1(* #!/??&H )
The predictions also show a group and Deutsche Bank pre- build the right portfolio to % - -# 2$ 4-,, )!. 33) -1 $%+ -%+-%0 !% 2 33) -1 $ -%
$))!"+$%) 4- 2 2 ".# !3 2 ,$% $%+ 2 !%/".$ -!% "+"5 2#
(1(* A* +
( )+(6 #!"0&H )(1(* #/00C&H 1)
9+-2( #0!&H $
2<-((( #!?/B&H $
2<-(((
typical investor bias of putting dicted 9850 and 9936, outperform the market,” he ",$## $" +#)"-+ -% + $-, -% 7 !3 2 ,$% $%+ 7 !3 #!"/&H $
2<-((( #!B&H $
2<-((( #?!!C&H
2 -#),!#'" $ .% 5
too much weight on recent respectively. Goldman Sachs said. / - ,* ) 2-* ;2-* 22 -;(+
$
2<-((( J #??/&H $
2<-((( #!.0&H $
2<-(
(( #!B?/&H $
2<-((( #CC?C&H $
2<-(((
) A -, F2 7 9)
7- #C?!&H $
2<-((( J #//!&H $
2<-((( J #0B&H
+()+ + <-)(5+ ( 2( 7 9) 6))* A $
2<-((( J #?00B&H $
2<-((( J #!B?&H $
-, )) ;2-* 22 -;(+ ) -) @( 2(
Closed-End Funds | WSJ.com/funds

2<-((( J #!/&H $
2<-((( J #"&H $ >I
5+ (), #"B.B&H $ ,2- (), #B/0?&H $ (),
F2( (7 * 25,( 7 9) (2)-+(6 F2( #?B?&H $ 2-,( #C!!&H $ (), #//00&H $
-,( F2( 7 * ;2-* 22 -;(+ ) 2 (), #?BB&H $ 2 (), #/0.&H $ (), 1)
Listed are the 300 largest closed-end funds as 52 wk Prem12 Mo ,- #& ( @((6H #& , + ++ 7 F2(6 *
measured by assets. , #.BC&H $ (), 9 #BB0&H $ 2 (), #B/?&H
Prem Ttl Fund (SYM) NAV Close /Disc Yld + - 7 )(, 7 -2 *H #2& @( (2-) $ ())6 (), #..!&H $ % (), #0&H $
Closed-end funds sell a limited number of shares and Fund (SYM) NAV Close /Disc Ret (* ( + - 7 * F2(H + #+& 5)+ @( >A-2*
invest the proceeds in securities. Unlike open-end Dreyfus Mun Bd Infr Fd DMB 13.87 12.39 -10.7 6.1 - + 1+ 7))@(6 ( #! 2$ 2* $" ")-1+ %! ,$ "
()
#!/&H $ '2A #/"&H $ G(+ (),
funds, closed-ends generally do not buy their shares Calamos Conv Hi Inco Fd CHY 11.65 11.02 -5.4 -14.6 Dreyfus Strat Muni Bond DSM 8.62 8.04 -6.7 6.2 #0C/"&H $ I- (), #//C&H $ ( (), #/?!&H $
2$% 899 (5.5 "1$-,-%0 $# "% -. !% $%'$"* :; :9;< #& 1, (), #!C/&H $ 2-)- (), #0!B&H $ -
back from investors who wish to cash in their holdings. 10.98 10.26 -6.6 -14.1
Instead, fund shares trade on a stock exchange.
Calamos CHI Dreyfus Strategic Munis LEO 8.86 8.51 -4.0 6.1 2D )(1(* ( !0?0 >1)* >)1+ -( .// >1)* ()) (), #B?"&H $ , + '-)( (), #!/!&H $ 2(-
World Equity Funds Eaton Vance Mun Bd Fd EIM 14.09 12.86 -8.7 6.0 )(7( !/0/ #
, %()
+* 1( + ) E(&H #& 2 (), #C"?&H $ )2 (), #0&H $ ,( (),
a-The NAV and market price are ex dividend. b-The 2-) ' * 000 ? @ A @ A
NAV is fully diluted. c-NAV is as of Thursday’s close. d- Alpine Tot Dyn Div AOD 9.30 7.73 -16.9 -3.6 Eaton Vance Mun Income EVN 13.18 13.42 +1.8 6.6 //C #
(2+ %* > (6) + ( (*& +
#C!&H $ (,) 9+-2( #!!B&H $ -A* (),
#""!"&H $ * E+ E() (), #.B"&H $ %> (), #//0&H
NAV is as of Wednesday’s close. e-NAV assumes rights Calamos Glbl Dyn Inc CHW 8.51 7.22 -15.2 -8.7 EV National Municipal Opp EOT 22.70 21.31 -6.1 4.7 + $-))( (2 = , 9 ./ 2A7)) 9)I @ A @ 6- (6() #C"&H 6- E, #?"0&H 6-)(7 #.??0&H
offering is fully subscribed. f-Rights offering in process.
g-Rights offering announced. h-Lipper data has been Cdn Genl Inv CGI 24.83 18.25 -26.5 NA Invesco Adv Mun Incm II VKI 12.61 11.57 -8.2 6.8 A //0 #
(6
%)7 $)( ' +,( + >)A G %)7&H 7 1 9+-2( #B/&H 2-, (), #CC.B&H )-
#2& 752 7 8(+ - - ((2 7 @ A 0/
adjusted for rights offering. j-Rights offering has China Fund CHN 17.83 15.39 -13.7 -6.2 Invesco Mun Incm Opps Tr OIA 7.61 7.27 -4.5 5.5 (2A -( //B @ A //? #
- E)+ +
9+-2( #C.!"&H ,( 9( 9+-2( #!"&H @ %(
expired, but Lipper data not yet adjusted. l-NAV as of Clough Glbl Eqty Fd GLQ 14.55 12.88 -11.5 -3.6 Invesco Mun Opportunity VMO 14.09 13.06 -7.3 6.4 A&H #+& 2-) 9) 9 G1-6 A++
9+-2( #.C&H * ; #./?.&H * 1),
previous day. o-Tender offer in process. v-NAV is #/BCC&H (6 %7 9+-2( #""&H 6 #B0&H
converted at the commercial Rand rate. w-Convertible
Clough Global Opp Fd GLO 12.46 10.55 -15.3 -5.1 Invesco Municipal Trust VKQ 14.02 12.71 -9.3 6.4
) $6 = ), 9 ? (, <- @ A @ A //.B 2
,6 9+-2( #/0.&H -+( $2+( #C."&H
Note-NAV (not market) conversion value. y-NAV and EtnVncTxAdvGblDiv ETG 17.15 15.66 -8.7 2.3 Invesco Qlty Mun Inco IQI 13.90 12.59 -9.4 6.2 #
- + )6&H #& 2-) 9) 9 -,, 1 9+-2( #!0&H @ 9+-2( #BC/C&H
(2) 7 ((- = ))( 9 %2A (1 -( 0"//
market price are in Canadian dollars. NA signifies that EatonVance TxAdv Opport ETO 23.34 21.84 -6.4 -4.8 Invesco Inv Grade Muni VGM 14.53 13.26 -8.7 6.7 (26 ))(( B/B/ .C. #
$(2)
,&H #7& 2-)
))* #!!"/&H ( 7 9) + 9+-2( #BB."&H
the information is not available or not applicable. NS Gabelli Glbl Multimedia GGT 8.42 7.55 -10.3 -19.3 Invesco Value Mun Incm Tr IIM 16.53 16.03 -3.0 5.4 -2A-2A $-(2 #"C.&H -2A-2A 9-)((6 #.!B/&H %(6
signifies fund not in existence of entire period. +(: ,,( 6- 6) = 6) 9 9 9)I -( ... E() (), #!B.!&H -, 2 #BB!&H K 9( ( #!"&
12 month yield is computed by dividing income GDL Fund GDL 11.98 10.09 -15.8 4.9 MainStay DefinedTerm MMD 19.49 18.39 -5.6 6.3 @ A @ A /! #

) 6- + A @)+&H #6& H )2( 7 : 2 +<- ( !0?0 >1)* >)1+
dividends paid (during the previous twelve months for India Fund IFN 27.19 23.70 -12.8 -5.9 MFS Munl Inco MFM 7.40 6.78 -8.4 5.8 + #& )) ( ( ( 1 5)+ <- 7 (2 -- -( .// >1)* ())
!/0
periods ending at month-end or during the previous >A-2* -) 0//0 ( : 2 2
Japan Sml Cap JOF 11.35 10.26 -9.6 24.1 NuvAMTFreeMuniIncm NEA 15.09 13.60 -9.9 5.9
0
()(I+ , @( +5+ ( 1 ,(6 6(1
fifty-two weeks for periods ending at any time other
* *: F2( -,( 7 ( ;2-* 22 -; , ( 9)
than month-end) by the latest month-end market price Korea Fund KF 36.32 32.48 -10.6 -2.7 NuvDivAdvMuniIncm NVG 16.28 14.40 -11.5 5.3
adjusted for capital gains distributions. Mexico Fund MXF 16.85 NA -12.6 Nuveen Div Fnd NAD 15.63 14.35 -8.2 6.1
Source: Lipper MS China a Shr Fd CAF 32.40 28.35 -12.5 53.2 Nuveen Div Fnd 2 NXZ 15.95 13.98 -12.4 5.9 BANKRUPTCIES
Thursday, December 24, 2015 MS India Invest IIF 28.90 25.25 -12.6 -4.7 Nuveen Div Adv NZF 15.99 14.16 -11.4 5.6
52 wk New Germany Fund GF 17.10 15.37 -10.1 8.1 Nuveen Enhncd Mun Val Fd NEV 15.61 15.65 +0.3 6.2
Prem Ttl Swiss Helvetia SWZ 12.33 10.64 -13.7 -0.0 Nuveen Intermed Dur Mun NID 13.75 12.71 -7.6 5.4
Fund (SYM) NAV Close /Disc Ret Templeton Dragon TDF 20.85 17.80 -14.6 -4.6 Nuveen Invest Qual Muni NQM 16.16 15.26 -5.6 6.4
General Equity Funds Voya Infr Indls & Matls IDE 14.73 12.74 -13.5 -15.6 NuveenMuniAdvantageFd NMA 15.48 13.77 -11.0 5.9

Wells Fargo Gl Div Opp EOD 6.87 5.85 -14.8 -13.3 NuveenMuniIncoOpp Fd NMZ 13.68 13.78 +0.7 6.6
Adams Divers Equity Fd ADX 15.15 12.89 -14.9 -0.4 L
Boulder Grwth & Inco BIF 9.84 7.72 -21.5 -13.0 Prem12 Mo Nuveen Muni Mkt Opp NMO 15.41 13.69 -11.2 5.8

L ! "
Central Securities CET 19.35 NA -4.2 Fund (SYM) NAV Close /Disc Yld Nuveen Mun Opportunity Fd NIO 15.75 14.10 -10.5 6.2
L #$%& '($$'"
LEGAL
CohSteer Opprtnty Fd FOF 12.36 10.87 -12.1 -10.2 Nuveen Muni Value Fund NUV 10.26 10.12 -1.4 4.0 L ,$ + 55 ;: ;;8
U.S. Mortgage Bond Funds
Cornerstone Strategic CLM 15.15 15.53 +2.5 -2.2 Nuveen Performance Plus NPP 16.28 14.91 -8.4 6.0

BlackRock Income Trust BKT 6.96 6.41 -7.9 6.0
EtnVnc TaxAdvDiv EVT 21.45 19.56 -8.8 2.1 Nuveen Premium Inco Muni NPI 15.58 13.91 -10.7 6.0
Brkfld Mortgage Opp Incm BOI 17.07 14.68 -14.0 10.6
Gabelli Dividend & Incm GDV 21.31 18.58 -12.8 -9.5 Nuveen Prem Inco Muni 2 NPM 15.63 14.27 -8.7 6.2 ) *( + , %%% -&
Brookfield TR Fund HTR 21.99 NA 10.4 Nuveen Prem Inco Muni 4 NPT 14.48 13.34 -7.9 6.2
.
/" ' $ -( .0
Gabelli Equity GAB 5.76 5.36 -7.0 -12.4
NOTICES
Nuveen Mtg Oppy Term Fd JLS 25.11 22.84 -9.0 6.7 Nuveen Premier Muni Inc NPF 15.26 13.55 -11.2 6.2
1 ' 2% -(/" 3$ 210 -&
Genl American Investors GAM 38.16 31.80 -16.7 -6.3 Investment Grade Bond Funds 0
.210/" %% 0$%%& %% 4
HnckJohn TxAdv HTD 22.97 20.55 -10.5 -2.1 Nuveen Quality Income NQU 15.86 13.95 -12.0 5.9 $ .&/" 210 5 6
AllianceBrnstn IncoFd ACG 7.86 7.68 -2.3 5.2 Nuveen Quality Muni Fund NQI 15.25 13.44 -11.9 5.1 $%$& 1% 1$ 1(%' &
Liberty All-Star Equity USA 6.23 5.40 -13.3 -2.4 Blackrock Core Bond Tr BHK 13.97 12.90 -7.7 7.0 01 ' 2% -( $ 071
Royce Micro-Cap RMT 8.73 7.32 -16.2 -14.7 Nuveen Select Quality NQS 15.75 13.99 -11.2 5.8 $- 44 ' *% 4
BlkRk Credit Alloc Incm BTZ 13.81 12.44 -9.9 7.9 PIMCO MuniFd PMF 13.22 15.32 +15.9 6.4
Royce Value Trust RVT 13.80 11.72 -15.1 -11.3 John Hancock Income Secs JHS 14.63 13.46 -8.0 6.5
8$' 2 9:01& 0 4 $$1 4
Source Capital SOR 73.36 66.23 -9.7 -1.4 Pimco Muni Inc II PML 12.36 12.39 +0.2 6.2 %3 .9:01& 0/"
MFS Inc Tr MIN 4.95 4.57 -7.7 10.2 PIMCO Muni Inc III PMX 11.10 11.48 +3.4 6.5 ) 1( ; , 9:01&
Tri-Continental TY 23.64 20.14 -14.8 -2.0 WstAstClymr InfLnkd Fd WIW 12.17 10.37 -14.8 3.7 0 ' $
% &&
Zweig Fund ZF 15.13 13.23 -12.6 -9.5 Pioneer Mun Hi Inc Adv Tr MAV 12.43 13.25 +6.6 7.8 '() *+*) *+() ('* (', !
WstAssetClymr InflLnk Sec WIA 12.47 10.75 -13.8 3.5 Pioneer Mun Hi Incm Tr MHI 13.34 13.05 -2.2 6.9 -''-) +''.) +''+ / 0 1"
Specialized Equity Funds Loan Participation Funds Putnam Tr PMM 7.99 7.30 -8.6 6.0

Adams Natural Rscs Fd PEO 21.25 18.00 -15.3 -20.9 Apollo Sr Fltg Rate Fd AFT 16.93 15.10 -10.8 8.1
"
"
2 /0
AllnzGI NFJ Div Interest NFJ 14.69 12.48 -15.0 -15.6 PutnamMuniOpportunities PMO 13.39 12.15 -9.3 5.9
2 /0
BlackRock FR Incm Strat FRA 14.31 12.95 -9.5 6.2 Wstrn Asset Mngd Muni MMU 14.33 14.07 -1.8 5.0
AlpnGlblPrProp AWP 7.00 5.86 -16.3 -3.8

2 /0 3
Blkrk FltRt InTr BGT 13.80 12.57 -8.9 6.2 WesternAssetMunTrFund MTT 22.55 24.10 +6.9 3.8
4
3
BlkRk Enh Cap Inco CII 15.21 14.35 -5.7 5.8 BlackstoneGSO Strat Cred BGB 15.28 13.66 -10.6 9.0 5
6
2 /10

BlkRk Engy Res Tr BGR 14.38 12.86 -10.6 -31.6 Single State Muni Bond
Blackstone GSO Sr Float BSL 16.02 15.11 -5.7 6.9

17

BlackRock Enh Eq Div Tr BDJ 8.76 7.70 -12.1 -0.2 BlackRock CA Municipal Tr BFZ 15.97 15.89 -0.5 5.5
%7 8
"
Eaton Vance FR Incm Tr EFT 14.03 12.65 -9.8 6.8 BlkRk MuniHldgs CA Qlty MUC 16.01 14.75 -7.9 5.5 5
6
2 /!0 9 3
ADVERTISE
Blackrock Global Trust BOE 14.32 12.75 -11.0 2.6 EatonVnc SrFltRate EFR 13.64 12.48 -8.5 7.4 Blkrck MunHl NJ Qlty MUJ 15.87 14.22 -10.4 6.3 .9$' 1'0 )'/"
BlkRk Health Sci BME 36.29 37.99 +4.7 6.1 1st Tr Sr Fltg Rt Fd II FCT 13.52 12.16 -10.1 7.0 *$- 01$ ' % 1'0 .9$'
BlkRk Intl Grwth&Inco BGY 6.96 6.21 -10.8 -1.3 BlRk MuHldg NY Qlty MHN 15.11 14.49 -4.1 5.8 1'0/" 4 &
Invesco Credit Opps Fund VTA 12.08 10.59 -12.3 8.3 BlkRk MuniYld CA Fd MYC 16.48 15.72 -4.6 5.6
BlackRck Rscs Comm Str Tr BCX 8.51 7.07 -17.0 -21.8
TODAY
9$' 1'0 *' $ 9$'
Invesco Senior Income Tr VVR 4.48 4.06 -9.4 7.7 BlkRk MuniYld CA Quality MCA 16.30 15.49 -5.0 5.8 1'0 )' M <N '1$
BlackRock Science & Tech BST 19.76 17.41 -11.9 6.5 Nuveen Credit Strt Inc Fd JQC 8.90 7.77 -12.7 7.4
BlackRock Utility & Infr BUI 19.49 16.91 -13.2 -11.0 BlkRk MuniYld MI Qlty MIY 15.73 13.77 -12.5 6.3 ( 4 $''$- 1 =0$(
NuvFloatRteInco Fd JFR 10.82 9.94 -8.1 7.2 BlRk Muyld NY Qlty MYN 14.47 13.46 -7.0 5.7
' ''%$ 4 $1$$ $ =0$'
CBREClarionGlblRlEstIncm IGR 9.02 7.56 -16.2 -9.6 Nuv Float Rte Opp Fd JRO 10.76 9.67 -10.1 7.5 ( 4 1($- $' ' $( %1$
Ctr Coast MLP & Infr Fd CEN 10.43 10.64 +2.0 -36.9 Eaton Vance CA Mun Bd EVM 12.91 12.07 -6.5 5.7 ' 1'01 4 01$ $4 O0%$4&$- 9$'
Nuveen Senior Income Fund NSL 6.44 5.75 -10.7 7.3 Invesco CA Value Mun Incm VCV 13.80 13.13 -4.9 6.1 $ (' 4 & $ ''$$ $'
Central Fund Of Canada CEF 11.44 10.37 -9.4 -10.2
Pioneer Floating Rate Tr PHD 12.08 10.77 -10.8 6.4 Invesco PA Value Mun Incm VPV 14.45 12.66 -12.4 6.3 (($%$>' $ 01 ' 2% -
Central GoldTrust GTU 39.03 38.52 -1.3 -4.7
Voya Prime Rate Trust PPR 5.50 5.01 -8.9 6.7 Invesco Inv Grade NY Muni VTN 15.18 14.45 -4.8 5.7
(
ClearBridge Amer Engy CBA 9.05 8.53 -5.7 -41.5 < 5 * %$1$' 44 4
High Yield Bond Funds Nuveen California AMT NKX 16.02 15.19 -5.2 5.8
ClearBridge Engy MLP Fd CEM 15.95 14.99 -6.0 -40.3 & ' 9:01& 0 1'
AllianceBernstein Glbl AWF 12.26 10.89 -11.2 8.6 Nuveen CA Div Fnd NAC 15.93 15.18 -4.7 6.2 0%' 01$ .01$/" 4 &
Clearbridge Engy MLP Opp EMO 13.78 13.09 -5.0 -39.9
Babson Gl Sh Dur Hi Yd BGH 18.35 16.71 -8.9 15.0 NuveenCA 3 NZH 14.78 14.11 -4.5 5.9 4 #0& , ,,, ( *$%$-
Clearbridge Engy MLP TR CTR 13.35 12.34 -7.6 -36.9 % 5$(" 752 7 752 7
BlackRock Corp Hi Yd Fd HYT 11.06 10.02 -9.4 9.5 NuveenMDPremiumIncome NMY 14.80 12.61 -14.8 5.3
Cohen & Steers Infra UTF 22.31 18.98 -14.9 -11.5 5( ' !$-
) %> ?

BlkRk Debt Strat Fd DSU 3.86 3.40 -11.9 8.3 Nuveen MI Quality Income NUM 15.81 13.55 -14.3 5.9 0 2 20$ ,, %% 5@ ?,
C&S MLP Incm & Engy Opp MIE 10.80 10.38 -3.9 -39.9
BlackRockDurInco Tr BLW 16.28 14.85 -8.8 8.7 Nuveen NJ Div NXJ 15.64 13.36 -14.6 5.3 %% $' $ 3 $*$' 0
Cohen & Steers Qual Inc RQI 13.37 11.73 -12.3 5.3
Credit Suisse High Yld DHY 2.40 2.30 -4.2 12.4 NuvAMTFreeMuniIncm NRK 14.55 13.00 -10.7 5.6
($ =0%$4&$- $' 01 & &
CohnStrsPfdInco RNP 21.49 18.13 -15.6 3.1 )." :: :9;= $ ;:99(5. *$%$-
DoubleLine Incm Solutions DSL 18.06 16.53 -8.5 11.3 Nuveen NY Div Fnd NAN 15.43 14.08 -8.7 5.6
Cohen & Steers TR RFI 13.51 12.44 -7.9 2.4 5$(" .9$' '%$/"
Dreyfus Hi Yld Fd DHF 3.23 3.10 -4.0 11.1 Nuveen Ohio Qual Income NUO 16.99 15.19 -10.6 5.7 5 9$' 1'0 )' % *$''
CLSeligmn Prem Tech Gr Fd STK 17.40 18.36 +5.5 4.4
Fst Tr Hi Inc Lg/Shrt Fd FSD 16.38 14.20 -13.3 8.8 Nuveen Pa Investment Qual NQP 15.75 13.64 -13.4 6.1 $4 ''$$% O0%$4&$- 9$' $ 1$*'
Divers Real Asset Incm Fd DRA 17.85 15.51 -13.1 -1.3 & 9$' '%$ 01$ 3$%%
Guggenheim Strat Opps Fd GOF 17.64 17.03 -3.5 12.3 PimcoCA PCK 8.91 9.86 +10.7 6.5
Duff & Phelps DNP 8.31 9.17 +10.4 -5.4 %' ' %% '$- 210
Duff&PhelpsGblUtilIncFd DPG 17.42 14.80 -15.0 -25.9
Duff & Phelps Sel Energy DSE 6.55 6.01 -8.2 -52.6
Ivy High Income Opps Fund IVH 14.32 12.36 -13.7 12.9
NexPoint Credit Strat Fd NHF 23.68 20.23 -14.6 30.3
Nuveen Gl Hi Incm Fd JGH 15.98 13.71 -14.2 10.0
52 wk
Prem Ttl
(800) 366-3975 *$%$- 01 ' : 9:01&
0 *% 4 01 ' 2% -
( $- 1'0%' 4 $%'$"* >
Eaton Vance Eqty Inco Fd EOI 14.08 13.46 -4.4 4.1 Fund (SYM) NAV Close /Disc Ret :9;< $ ?@9 $5.5 ("1$-,-%0 $# "% -.
Eaton Vance Eqty Inco II EOS 14.47 13.68 -5.5 5.1 Pioneer High Income Trust PHT 9.51 9.72 +2.2 14.2 .2% A$-/" 5 2% A$- 3$%%
Prud Gl Shrt Dur Hi Yd GHY 16.12 14.42 -10.5 12.3
sales.legalnotices
EtnVncRskMngd ETJ 11.22 10.11 -9.9 0.6 General Equity Funds %' 4 A% !*$ 8$'
Etn Vnc Tax Mgd Buy-Write ETB 15.57 16.75 +7.6 11.5 Prudentl Sh Dur Hi Yd Fd ISD 16.45 14.87 -9.6 10.7 Alternative Strategies:C NA NA NA N 2 9:01& #0'- 8$' 2
Wells Fargo Incm Opps Fd EAD 8.26 7.46 -9.7 11.0 9:01& 0 4 $$1 4 %3
Eaton Vance BuyWrite Opp ETV 14.63 15.25 +4.2 11.2 Little Harbor MS Comp 455.50 NA NA N +< B: 2 C% 0(
Eaton Vance Tax-Mng Div ETY 11.94 11.27 -5.6 7.5
EatonVanceTax-MngdOpp ETW 11.63 11.20 -3.7 6.7
Wstrn Asset Glbl Hi Inco EHI 10.18 8.79 -13.7 12.8
Wstrn Asset High Inco II HIX 6.91 6.34 -8.2 12.4
Wstrn Asset Opp Fd HIO 5.16 4.67 -9.5 9.3
Specialized Equity Funds
American RE Income 10.55 NA NA 3.9
Corsair Opportunity:I 9.38 NA NA -7.2
@wsj.com D$%($- %3 ;+,
5 * 1$*' ''$
$% O0%$4&$- 9$' & 9$' '%$ '
EtnVncTxMngGlDvEqInc EXG 9.76 8.74 -10.5 -0.6 4 '
Fiduciary/Clymr Opp Fd FMO 14.43 13.24 -8.2 -44.4 West Asst HY Def Opp Fd HYI 15.41 14.06 -8.8 9.4 Griffin Inst Access RE:A 26.07 NA NA 7.0 %% 4 9$' 1'0 4 $ 9$'
FT Energy Inc & Growth Fd FEN 23.71 23.00 -3.0 -30.9 Other Domestic Taxable Bond Funds Griffin Inst Access RE:C 26.02 NA NA NS 1'0 )' -'$- 210 *$%$-
Ares Dynamic Credit Alloc ARDC NA 13.43 NA 9.5 Griffin Inst Access RE:I 26.11 NA NA NS 01 3$%% %&
FstTrEnhEqtIncFd FFA 15.11 13.22 -12.5 -4.3
First Tr Engy Infr Fd FIF 16.67 14.87 -10.8 -30.1
First Tr MLP & Engy Incm FEI 14.54 13.59 -6.5 -30.6
Babson Cap Corp Inv MCI NA 17.54 NA 5.3
BlackRock Multi-Sector IT BIT 18.41 16.01 -13.0 9.4
Resource RE Div Inc:A 9.92 NA NA 1.3
Resource RE Div Inc:C 9.90 NA NA 0.6
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Gabelli Hlthcr & Well GRX 11.89 10.24 -13.9 1.4
Gabelli Utility Tr GUT 5.14 5.80 +12.8 -12.8
BlackRock Taxable Mun Bd BBN 22.54 21.09 -6.4 7.6
Doubleline Oppor Credit DBL 22.79 25.10 +10.1 8.2
Duff & Phelps Utl & Cp Bd DUC 10.05 9.30 -7.5 6.4
Resource RE Div Inc:D 10.06 NA NA NS
Resource RE Div Inc:I 10.46 NA NA 0.7
Resource RE Div Inc:T 9.89 NA NA NS
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GAMCOGlblGoldNatRscs&Inc GGN 5.49 4.89 -10.9 -17.1
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( $( & 71 (0 % *
GoldmanSachsMLPIncOpp GMZ 8.58 8.76 +2.1 -45.0 EtnVncLtdFd EVV 14.35 12.72 -11.4 9.6 Resource RE Div Inc:U 9.92 NA NA NS 1& 4 71$ 1$*' &
Goldman Sachs MLP Energy GER 5.81 5.66 -2.6 -54.6 Franklin Ltd Duration IT FTF NA 10.99 NA 7.3 Resource RE Div Inc:W 10.05 NA NA 0.7 2% )71$ '%$ " 6 10
GuggenhBondMnegDurTr GBAB 22.66 21.89 -3.4 8.0 SharesPost 100 25.53 NA NA 3.9 % " 5( E !$-
? 0
John Hancock Finl Opps Fd BTO 26.40 27.44 +3.9 21.6 2 20$ ,, %% 5F ?, *$'
KayneAndersonEngyTRFd KYE 9.90 9.03 -8.8 -64.7 KKR Income Opps Fund KIO 15.86 13.99 -11.8 10.7 Versus Cap MMgr RE Inc:F 26.86 NA NA 7.3 B 9 ="G ' " 9&' %
Kayne Anderson MLP Invt KYN 17.78 17.23 -3.1 -49.7 MFS Charter MCR 8.94 7.72 -13.6 10.2 Versus Cap MMgr RE Inc:I 26.93 NA NA 7.7 3 *0 20$ ;,, D$%($- ;+,
Kayne Andrsn Midstr Engy KMF 13.08 13.27 +1.5 -55.3 MFS Multimkt MMT 6.44 5.54 -14.0 8.9 Wildermuth Endowment Str 10.87 NA NA NS $% 9 %("G 1" %%%
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20$ +<, ? , *0 2D %
Macquarie Glbl Infrstrctr MGU 22.93 18.98 -17.2 -19.4 Nuveen Build Am Bd Fd NBB 21.50 20.12 -6.4 6.8 Income Preferred Stock Funds -& % 5 ,+ $1' B$%%"G
NeubergerBermanMLPIncm NML 8.11 8.12 +0.1 -51.1 PIMCO Corporate & Incm PTY NA 13.35 NA 15.9 CLA Strategic Alloc XSAFX 2.66 NA NA NS '" 0% 210 D$' ,, D$
Neubrgr Brm Rl Est Sec Fd NRO 5.66 4.90 -13.4 -0.8 PIMCO Corporate & Incm PCN NA 13.70 NA 12.1 MultiStrat Gro & Inc:A 15.64 NA NA -0.8 ' 90$%'$- ?+ A3' 2 %%
Nuveen Dow 30 Dynamic DIAX 15.85 14.37 -9.3 NA PIMCO HiInco PHK NA 8.52 NA 15.7 MultiStrat Gro & Inc:C 15.52 NA NA -1.5 5@ ?, %$ %0(0"G " 0%
'$ ($% 9: 4 ((1 -
NuvCorEqAlpha JCE 15.02 14.14 -5.9 -1.6 PIMCO Inco Str Fd PFL NA 9.91 NA 12.1 MultiStrat Gro & Inc:I 15.68 NA NA -0.5 4 6 $$
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Nuveen Engy MLP Fd JMF 12.41 11.28 -9.1 -39.2 Pimco Inco Strat Fd II PFN NA 8.93 NA 12.3 MultiStrat Gro & Inc:L 15.56 NA NA -1.3 D:$
++ 5$' *0 3 : 3

NuvNASDAQ100DynOver QQQX 20.05 NA NA NA Putnam Mas Inco PIM 4.97 4.52 -9.1 6.7 Convertible Sec's. Funds : ,, B$1%% 2$'"G 4" 0%
Calmos Dyn Conv and Inc CCD 20.70 18.47 -10.8 NS * 752() 2+(: 2,,( (+ (
Nuveen Real Estate Fd JRS 11.62 10.52 -9.5 -1.7 Putnam Premier Income Tr PPT 5.47 4.92 -10.1 6.2 G -" 6 C$1$%
NuveenS&P500Buy-Write BXMX 13.40 13.12 -2.1 NA Wells Fargo Multi-Sector ERC 13.18 11.40 -13.5 10.1 World Equity Funds '*$ ' *( 9: *1 0
Reaves Utility Fund UTG 25.95 NA -17.0 World Income Funds BMO LGM Front ME 8.10 NA NA -10.9

;,; C$ 2 20$ ?,, A0
Abeerden Asia-Pacific FAX 5.53 4.64 -16.1 6.5 J CC// #
92&H + #& 752
Salient Midstream & MLP SMM 9.86 NA -55.0 Prem12 Mo 4 8$' 2 50 4 $$1 4
Tekla Hlthcr Investors HQH 31.73 31.23 -1.6 5.7 Etn Vnc Short Dur Fd EVG 15.01 13.26 -11.7 8.2 Fund (SYM) NAV Close /Disc Yld %3 +<< !$- 2 20$ ,?
1:@
Tekla Healthcare Opps Fd THQ 19.60 17.35 -11.5 -4.5 Legg Mason BW Glbl Incm BWG 13.82 11.74 -15.1 15.1 U.S. Mortgage Bond Funds D$%($- %3 ;+,
$'
Tekla Life Sciences HQL 25.07 24.98 -0.4 7.6 MS EmMktDomDebt EDD 8.28 6.94 -16.2 12.5 Vertical Capital Income 11.87 NA NA 3.5
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Tekla World Hlthcr Fd THW 18.44 15.82 -14.2 NS PIMCO Dynamic Credit Incm PCI NA 18.33 NA 13.6 Loan Participation Funds $- & 0%' '$1' 3'
Tortoise Energy TYG 28.52 27.73 -2.8 -32.5 PIMCODynamicIncomeFund PDI NA 27.49 NA 14.6 504 Fund 9.93 NA NA 2.7 : 52() +1( + (1,
Tortoise MLP Fund NTG 18.36 17.00 -7.4 -32.5 PIMCO Income Opportunity PKO NA 21.33 NA 13.7 FS Global Crdt Opptys D NA NA NA 8.1 : *1 0

3$1 1
PIMCO Strat Income Fund RCS NA 9.00 NA 11.0 11' *1 0

;,; C$
Voya Gl Equity Div IGD 8.22 7.20 -12.4 -5.7 Invesco Sr Loan A 6.07 NA NA 5.9 2 20$ ?,, A0 5F ??,,
Income Preferred Stock Funds Templeton Emerging TEI 11.54 9.97 -13.6 8.0 Invesco Sr Loan B 6.07 NA NA 5.9 ?<,<<, ($% 1P*11(
Calamos Strat Fd CSQ 11.25 10.09 -10.3 -5.6 Templeton Global GIM 7.25 6.59 -9.1 9.8 Invesco Sr Loan C 6.08 NA NA 5.1 1
Cohen & Steers Dur Pfd LDP 25.08 22.60 -9.9 6.1 Wstrn Asset Emerg Mkts ESD 16.35 13.88 -15.1 9.4 Invesco Sr Loan IB 6.07 NA NA 6.2
; 5 2% A$- (& '70' 4(
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Cohen & Strs Sel Prf Inco PSF 26.73 24.82 -7.1 3.5 Wstrn Asset Emerg Mkt II EMD 11.65 9.78 -16.1 8.8 Invesco Sr Loan IC 6.07 NA NA 6.1 $ $ $ & 01
FT Interm Duration Pfd FPF 23.39 21.21 -9.3 6.3 Wstrn Asset Gl Def Opp Fd GDO 17.93 16.00 -10.8 8.2 Invesco Sr Loan Y 6.07 NA NA 6.2 ( 4 '70( $ 10
Flaherty & Crumrine Dyn DFP 23.98 22.56 -5.9 8.0 National Muni Bond Funds Voya Senior Income:A 12.18 NA NA 5.5 6+ 5)+ * @( >A-2*
Flaherty & Crumrine Pfd FFC 18.69 20.25 +8.3 7.0 AllianceBrnstn NtlMun AFB 15.14 13.66 -9.8 5.9 Voya Senior Income:B 12.14 NA NA 5.0
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John Hancock Pfd Income HPI 21.59 19.89 -7.9 4.3 Blackrock Invest BKN 16.31 15.43 -5.4 6.1 Voya Senior Income:C 12.16 NA NA 5.0

John Hancock Pfd II HPF 21.38 19.49 -8.8 2.1 BlackRock Municipal Trust BFK 14.91 14.65 -1.7 6.3 Voya Senior Income:I 12.14 NA NA 5.8 B
John Hancock Pfd Inc III HPS 18.98 17.63 -7.1 4.9 BlackRockMuni BLE 15.54 15.14 -2.6 6.3 Voya Senior Income:W 12.19 NA NA 5.7

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JHancock Pr Div PDT 14.97 13.48 -10.0 4.4 BlackRockMuni Tr BYM 15.57 14.38 -7.6 6.1 High Yield Bond Funds
5 $ $ 1 ' % 40 '$-
LMP Cap & Inco Fd SCD 14.80 12.46 -15.8 -20.8 Blackrock Mun Target Term BTT 23.68 21.51 -9.2 4.5 WA Middle Mkt Inc WMF683.76 NA NA 11.5 ( 7 2 : ;* (+(52( -,
Nuveen Preferred & Incm JPI 24.26 22.84 -5.9 11.0 BlkRk MuniAssets Fd MUA 14.16 14.15 -0.1 5.5 Other Domestic Taxable Bond Funds 4%%3 %%% -&
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Nuveen Preferred Inc Opp JPC 10.16 9.03 -11.1 5.2 BlkRk Munienhanced MEN 12.30 11.80 -4.1 6.2 Capstone Church Capital 16.99 NA NA 3.2 %%% -&
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Nuveen Quality pf JTP 8.96 8.29 -7.5 9.6 BlkRk MuniHldgs Inv MFL 15.46 14.41 -6.8 6.0 GL Beyond Income 4.93 NA NA NE 20$ ,, 50% )! ?<
Nuveen Fd2 JPS 9.55 9.02 -5.5 8.3 BlkRk MuniHldgs Qlty II MUE 14.68 13.47 -8.2 6.1 Palmer Square Opp Income 17.62 NA NA 5.1
$ 4 9$' 1'0 )' 9$'
TCW Strategic Income Fund TSI 5.36 NA 1.2 BlkRk MuniVest MVF 10.15 10.17 +0.2 6.3 Resource Credit Inc:A 9.80 NA NA NS 1'0 ' 01 ' 2% -
BlkRk MuniVest II MVT 15.98 16.16 +1.1 6.3 ( *$%% 4 4 1- 3$
Zweig Total Return ZTR 13.73 12.04 -12.3 -6.6 Resource Credit Inc:C 9.79 NA NA NS 4 6 1%$( ' $1$- - HH
Convertible Sec's. Funds BlkRk MuniYield MYD 15.31 14.74 -3.7 6.3 Resource Credit Inc:D 9.80 NA NA NS 1$(1%:1(H%%%
© 2015 Dow Jones & Company, Inc.
AdvntClymrFd AVK 16.33 13.71 -16.0 -10.1 BlkRk MuniYld Quality MQY 16.19 15.77 -2.6 6.1 Resource Credit Inc:I 9.81 NA NA NS All Rights Reserved.
AllianzGI Conv & Incm NCV 6.24 5.48 -12.2 -30.1 BlkRk MuniYld Qlty II MQT 14.19 13.22 -6.8 6.2 Resource Credit Inc:T 9.79 NA NA NS
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Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Delayed Ignition From Cheap Fuel for U.S. OVERHEARD

When it comes to fall- U.S. nonresidential invest- be part of why the saving One down, about 30 to go.
ing oil prices and the U.S. Flagging Energy ment spending. So even in rate has moved higher, ris- Anglo American Thursday
economy, maybe the second Seasonally adjusted investment the unlikely event the oil and ing to 5.5% in November said it had sold its Dartbrook
time’s a charm. in oil and gas wells and mining gas sectors again halve their from 4.6% a year earlier. thermal coal mine to Austra-
The sharp decline in crude and oil-field machinery investment spending, it There is likely more pain lian Pacific Coal, a listed ex-
prices in the latter half of $50 billion won’t pack nearly as much of ahead for oil-industry-de- ploration company.
2014, and its attendant drop a punch. pendent workers, but as The money won’t make
in gasoline prices, was sup- 40 Meanwhile, U.S. house- with oil and gas industry in- much difference. Anglo will
posed to be a boon for the holds may spend more of vestment, the cuts in the get A$25 million ($18 million)
economy in 2015. Alas, it 30 their gasoline savings in the year ahead may not be as upfront as well as royalties
wasn’t. Instead, sharp de- year to come. deep as the ones in the year on coal produced or pro-
20
clines in oil-patch invest- For most Americans, the now coming to a close. cessed at the mine, for a to-
JOE RAEDLE/GETTY IMAGES
ment cut into economic 10 big drop in pump prices has Concurrently, more of the tal of A$50 million.
growth and people opted to been a welcome thing, money other Americans have But getting anything at all
hang onto much of the cash 0 though not for all of them. been saving on gasoline may for a small, high-cost mine in
they were saving at the 1Q 2Q 3Q 4Q 1Q 2Q 3Q Those dependent on flow through into spending. a seriously unloved commod-
pump rather than spend it 2014 ’15 the oil industry—drillers, This is partly because they ity is a minor miracle. It is
elsewhere. Source: Commerce Department truckers, oil-field-equipment have had more time to ad- one (admittedly small) step
Now oil prices are falling THE WALL STREET JOURNAL. makers, North Dakota bar- just their spending and in Anglo’s restructuring,
again, with U.S. crude clos- tenders—lost jobs. partly because pump prices whereby it intends to shrink
ing at $38 a barrel on Thurs- drops in energy costs should Combined spending on oil Others experienced re- have been low enough, long from 55 assets to under 25.
day, well below the $59.47 at provide more of an economic and gas wells and mining duced hours and heightened enough, that people no lon- There will need to
which it finished in June. boost. and oil-field machinery in nerves. They probably ad- ger think it is merely a tem- be much, much more to
Gasoline is down, too, with One reason is that the the third quarter was 48% justed spending downward porary relief. come, and quickly, to allevi-
regular averaging $2.03 a cuts in oil and gas industry below its year-earlier levels, quicker, and more deeply, 2016 could be the year the ate concerns over Anglo’s
gallon, and cued by whole- investment spending have according to the Commerce than others adjusted spend- U.S. economy finally steps on business and finances.
sale prices to go even lower. been so deep there isn’t Department. As a result, it ing upward in response to the gas. In which vein, it is notable
This time around, those nearly as much to trim. went from 7.4% to 3.7% of gasoline savings. That may —Justin Lahart that Dartbrook has been
mothballed since 2006. The
mine needs expanding to im-
Try Banks for Safe Dividends Coupon Clippers

Trailing dividend yields of
large U.S. banks
prove the cost position and
Anglo has been focused on
other coal projects in the
same area.
It has been a long time unique safety of bank divi- flunking the stress test? Be- But in the nine years since
since anyone thought of bank dends. Every year, the big- cause the Fed keeps the Citigroup
the mine was shut down
stocks as reliable dividend gest U.S. banks have stress-test process opaque thermal coal prices have done
0.4%
payers. It may be time to their capital planning scruti- and evaluates banks both on a round trip, soaring to close
give them a second look. nized by regulators at the quantitative and qualitative Bank of America to $200 a metric ton from
Back in 2007, 29% of the Federal Reserve and tested measures, that remains a 1.2% about $55 a ton before a
S&P 500’s dividend income against dire economic and fi- very real possibility for any
JUSTIN SULLIVAN/GETTY IMAGES
long descent back to roughly

came from banks and other nancial conditions. Under of the banks. But even this is J.P. Morgan Chase where they started.
financial stocks. The finan- these “stress tests,” banks unlikely to result in a cut to 2.7% The question, then, isn’t so
cial crisis brought that num- are forced to assume that a bank’s payout. much why Anglo is selling
ber down sharply. By 2012, they don’t cut their divi- The penalty regulators Wells Fargo the mine now. It is why the
financials were contributing dends even as profits deteri- have attached to not earning 2.8% company didn’t take an op-
just 13% of the S&P’s divi- orate and credit losses a passing grade on the stress portunity to get rid of it ear-
dends, behind consumer sta- mount. test isn’t a cut to a dividend, Source: FactSet lier.
ples and technology. In other words, banks much less a complete halt. THE WALL STREET JOURNAL.
Financials have regained must demonstrate to regula- Instead, regulators have de-
their lead position, however. tors that they could keep nied or delayed the ability of tial in terms of their payouts, date.
As of June 30, 2015, they paying their dividend even in banks to raise them. This mostly because they are so And it remains to be seen
produced 15.5% of the S&P’s a deep, world-wide reces- means that big bank divi- low now. how much higher interest
SIPHIWE SIBEKO/REUTERS
dividends, higher than any sion. As a result, the dividends are likely to only move None of this means banks rates will benefit the bottom
other sector. In the third dends of the biggest banks in one direction: higher. are a sure bet, of course. lines of financial institutions.
quarter of this year, finan- may be the safest payouts in Thanks to stress testing, Earnings have been severely Yet with so much uncertainty
cials posted the largest year- the world. There is approxi- bank dividends are a one- disappointing this year, and swirling around the big
over-year dividend-per-share mately zero chance that they way ratchet. shares of many of the big banks, the safety of their
growth, according to FactSet. would have to be cut in any Of the biggest banks, Bank banks have fallen. Only J.P. dividends is a welcome re-
What may be even more realistic economic scenario. of America and Citigroup Morgan Chase’s shares are spite. Anglo American offices
important, however, is the But what about the risk of have the most upside poten- currently up in the year to —John Carney
MONEY & INVESTING Insider-Trading Spotlight

Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys
CITI
new information about the prospects of a company. Insiders are required to report large trades to the SEC
ments. staff would be uncomfortable within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by
Mr. Corbat said he wants to in the new setup and that Thomson Financial on December 25, and year-to-date stock performance of the company
encourage communication could affect how they serve KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer
among employees who typi- clients. CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner
Continued from page C1 cally might not talk to one an- “When you are in an indus- I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT:
unknown VP: vice president Excludes pure options transactions
spent most of my career in an other and is particularly ex- try that is reluctant to change,
office and I don’t want to cited about a “town square” and you manage a group of
change that now,’” said Mr. area on the ground floor. people who have been success-
Biggest weekly individual trades
Based on reports filed with regulators this past week
Corbat. “But weighing that “You’re going to be forced ful, a new idea can be difficult
against the benefits to the rest to bump into people,” Mr. Cor- to adopt,” Mr. McGuire said. No. of shrs in Price range ($) $ Value
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%)
of the organization, that’s a bat said. “I want people inter- He said Mr. Corbat helped con-
risk we’re comfortable taking.” acting around our business vince him that the new setup
While researchers disagree and ideas.” will help the bank best serve Buyers
about whether open offices Mr. Corbat’s new work- clients, by fostering collabora- Dec. 22 Prospect Capital Corp PSEC J. Barry CEO 1,029 6.86 7,054 7.29 -11.7
foster communication or en- space, which measures about tion and attracting young tal- Dec. 21 J. Barry CEO 1,033 6.77 6,988
courage distraction, Mr. Cor- 360 square feet, won’t have ent. Besides, Mr. McGuire Dec. 17 J. Barry CEO 790 6.74-6.76 5,340
Dec. 18 J. Barry CEO 744 6.70 4,986
bat is in the former camp. He walls or a door. Instead it fea- added, “A lot of people are out
Dec. 16 J. Barry CEO 561 6.59-6.63 3,702
said he was inspired by an- tures glass dividers, about 7 meeting with clients anyway.” Dec. 18 M. Eliasek CO 75 6.74 506
other Salomon alumnus—Mi- feet tall, to provide what the Other financial firms have
Dec. 22-23 Actuant Corp ATU R. Arzbaecher CEO 210 23.34-24.31 4,979 24.77 -9.1
chael Bloomberg, who as New bank calls “seated privacy.” adopted elements of modern
Dec. 22 A. Lampereur CFO 20 23.12 462
York City mayor worked from Other executives get semipri- design, but even banks that
Dec. 17-18 Sears Holdings Corp SHLD E. Lampert CEOI 192 19.27-19.79 3,787 20.79 -30.8
a desk in the middle of City vate spaces of about 180 have incorporated some open
Dec. 16-18 B. Berkowitz BI 94 19.34-20.37 1,859
Hall. square feet. spaces have kept private of-
The wall-less workspace is When Mr. Corbat an- fices for almost all of their se- Dec. 21 Plains Gp Holdings LP PAGP J. Raymond D 424 7.40 3,137 9.89 -61.5
meant to flatten hierarchies, nounced his plans, he made an nior executives. As part of its Dec. 21-23 Lands End Inc LE E. Lampert BI 88 22.65-23.00 2,002 24.24 -55.1
something banks have tradi- offer that most workers con- research, Citigroup toured the Dec. 21 Sunesis Pharmaceuticals Inc SNSS D. Misfeldt DI 1,750 .84 1,470 0.96 -62.5
tionally been built on. Former sidered rhetorical: Anyone New York offices of rivals such Dec. 21-22 EXCO Resources Inc XCO J. Wilder DI 1,310 .86-.94 1,178 1.13 -47.9
Citigroup CEO Sandy Weill had who has a problem with the as UBS Group AG and Gold- Dec. 23 J. Wilder DI 653 1.12 732
a fireplace in his office when design can come talk to me. man Sachs Group Inc., as well Dec. 17-18 J. Wilder DI 630 .90-.95 582
he ran Shearson Loeb Rhoades Ray McGuire, who runs the as Facebook Inc. in Silicon Dec. 23 Capitala Finance Corp CPTA J. Alala CEOI 85 11.60 985 12.30 -31.2
from atop the World Trade firm’s corporate and invest- Valley.
Dec. 17-18 Ascena Retail Group Inc ASNA E. Jaffe CBI 100 9.68-9.72 970 10.13 -19.3
Center. Mr. Corbat’s current ment bank and its army of Only the top three floors at
Park Avenue office, at more highly paid deal makers, actu- Citigroup’s Tribeca headquar-
than 600 square feet, is larger ally took him up on it. Mr. ters will be fully renovated
Sellers
than many Manhattan apart- McGuire said he feared his when the executives move in Dec. 16-18 Equity One Inc EQY E. Ottosson BI 4,830 25.60-25.82 124,572 26.80 5.7
next month. Changes to the Dec. 16-18 C. Katzman CBI 4,830 25.60-25.82 124,572
Dec. 16-18 D. Segal DOI 4,830 25.60-25.82 124,572
rest of the building will be
rolled out over roughly the Dec. 21 Rice Energy Inc RICE K. Peto BI 5,000 7.75 38,750 9.86 -53.0
next four years. When com- Dec. 21 D. Rice DOI 5,000 7.75 38,750
plete, the skyscraper will have Dec. 18 RE/MAX Holdings Inc RMAX D. Liniger CEOI 675 36.00 24,300 37.75 10.2
capacity for about 12,500 em- Dec. 18 G. Liniger DOI 675 36.00 24,300
ployees, up from the current Dec. 18 Iradimed Corp IRMD R. Susi CEOI 1,043 23.28 24,292 26.18 102.9
9,000. Dec. 16 Abbott Laboratories ABT M. White CEO 438 46.00-46.05 20,150 45.10 0.2
The bank says it carefully Dec. 16 Patriot National, Inc PN S. Mariano CEO 2,500 6.99 17,475 8.19 -39.3
considered its employees’ con-
Dec. 16-18 Six Flags Entertainment Corp SIX U. Nabi DI 278 53.50-53.59 14,890 54.63 26.6
cerns. The design—from
Dec. 16-18 R. Jaffer BI 278 53.50-53.59 14,890
white-noise generators
Dec. 17 Alexion Pharmaceuticals Inc ALXN L. Bell D 70 186.19-189.73 13,138 189.41 2.4
to walls and ceilings that ab-
sorb sound—is meant to mini- Dec. 22 Alphabet Inc GOOGL L. Page CEO 17 762.24-769.71 12,758 765.84 44.3
mize the distraction of nearby Dec. 23 L. Page CEO 17 758.59-770.64 12,750
Dec. 21 L. Page CEO 17 754.93-765.20 12,676
conversations. Each floor will
have multiple conference Dec. 21 Delta Air Lines Inc DAL E. Bastian P 240 51.02 12,246 52.26 6.2
rooms and small phone rooms Dec. 21 Palo Alto Networks Inc PANW S. Tomlinson CFO 59 178.96-182.60 10,545 178.73 45.8
for private conversations. The * Half the transactions were indirect **Two day transaction
bank is considering “instant p - Pink Sheets
fog” for some of those glass-
walled rooms. Employees have
SASHA MASLOV FOR THE WALL STREET JOURNAL
Buying and selling by sector

been told that they will adapt
Based on actual transaction dates in reports received this past week
by wearing headphones and
talking more quietly. Sector Buying Selling Sector Buying Selling
“If you look at the history of
Basic Industries 189,694 2,904,035 Finance 10,077,383 54,812,666
trading floors there is an ex-
tremely high level of produc- Business services 0 12,570,733 Health care 2,735,441 84,798,374
tivity,” said Don Callahan, who Capital goods 0 0 Industrial 6,021,617 4,014,690
runs Citigroup’s operations Consumer durables 68,358 570,540 Media 0 10,734,245
and technology and is oversee- Consumer nondurables 144,525 14,561,066 Technology 1,412,827 39,230,286
ing the renovation. “If we can Consumer services 3,554,620 26,623,066 Transportation 249,829 30,605,176
adapt that to a nontrading Energy 3,348,349 2,074,533 Utilities 161,650 1,216,722
floor environment, we’re going
The view from Citigroup’s offices in New York’s Tribeca to be in great shape.” Sources: Thomson Financial; WSJ Market Data Group

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