For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

Jeffrey Herbst A Fare Change Facebook’s Algorithm For Business Fliers Is a News Editor THE MIDDLE SEAT | D1 OPINION | A15 ASSOCIATED PRESS ***** THURSDAY, APRIL 14, 2016 ~ VOL. CCLXVII NO. 87 WSJ.com HHHH $3.00

DJIA 17908.28 À 187.03 1.1% NASDAQ 4947.42 À 1.55% STOXX 600 343.06 À 2.5% 10-YR. TREAS. À 6/32 , yield 1.760% OIL $41.76 g $0.41 GOLD $1,246.80 g $12.60 EURO $1.1274 YEN 109.32 What’s Migrants Trying to Leave Greece Meet Resistance at Border Big Bank’s News Earnings

Business&Finance Stoke Optimism .P. Morgan posted bet- Jter-than-expected re- sults, delivering a reassur- BY EMILY GLAZER ing report on its business AND PETER RUDEGEAIR and the U.S. economy. A1 The Dow climbed 187.03 J.P. Morgan Chase & Co. de- points to 17908.28, its high- livered a reassuring report on est level since November, as the state of U.S. consumers J.P. Morgan’s earnings ignited and corporations Wednesday, gains in financial shares. C1 raising hopes that strength in the economy will help banks Citigroup was the only offset weakness in their Wall bank whose “living will” plan Street trading businesses. wasn’t rejected by either the Shares of the New York Fed or the FDIC, while Wells bank, which reported better- Fargo drew a rebuke. C1 than-expected first-quarter Peabody filed for bank- profit, helped push the Dow ruptcy protection, as coal’s Jones Industrial Average slow collapse claimed the 187.03 points, or 1.1%, higher, country’s largest producer. A1 to a new 2016 peak. J.P. Mor- gan’s position as the largest Regulators have proposed U.S. bank by assets—spanning banning Theranos’s founder

AMEL EMRIC/ASSOCIATED PRESS businesses from mortgage from the blood-testing busi- FENCED IN: A migrant in the Greek village of Idomeni clashed Wednesday with a police officer across the border in Macedonia. A10 lending to merger advice— ness for at least two years. A1 makes it a bellwether for the Two senators circulated industry and the rest of the a proposal that would re- market. quire firms to unlock en- Bank officials said trading crypted technology when activity picked up in March, served with a court order. B1 Coal Crash Sinks Mine Giant helping offset an otherwise lackluster first quarter in mar- Most top oil executives kets. Strong borrowing de- have seen their pay shrink dustry for more than a cen- Health Administration. get 33% of their electricity mand from consumers and along with share prices. An Largest U.S. producer tury. No large publicly listed U.S. from gas in 2016, and 32% companies helped the bank increase for BP’s CEO has Peabody follows rivals The bankruptcy of St. Louis- coal miner has been spared by from coal, according to the En- earn about $300 million more irked many shareholders. B1 into bankruptcy amid based Peabody Energy Corp. the forces crushing the coal in- ergy Information Administra- than analysts projected for the OPEC said global oil came after similar filings by dustry, which include the de- tion. As recently as 2008, coal period. production outside the drop in demand, prices Arch Coal Inc., Alpha Natural cline in steel production, the fueled half of U.S. power con- “The U.S. economy contin- cartel is falling more Resources Inc., Patriot Coal conversion of coal-fired power sumption. Coal prices have ues to chug along,” Chairman sharply than expected. C1 BY JOHN W. MILLER Corp. and Walter Energy Inc., plants to natural gas, which fallen by more than 60% since and Chief Executive James Di- AND MATT JARZEMSKY all of which have recently has become a cheap and abun- 2011. mon said on a conference call Verizon was hit by a sought chapter 11 protection. dant thanks to the shale boom, Peabody Chief Executive with reporters. While the bank strike by nearly 40,000 union Coal’s slow collapse pushed Those companies have lost and new environmental regula- Glenn Kellow called the cur- is still aiming for faster employees after 10 months the largest U.S. miner to de- a combined $30 billion in tions. rent market “historically chal- growth, “the consumer is of tense contract talks. B5 clare bankruptcy Wednesday, stock-market value since 2010, But despite miners’ strug- lenged” and said the bank- strong, companies still have Retail sales fell in March, marking the end of an era for and the coal sector has shed gles, coal has continued to fuel ruptcy filing was “an in-court plenty of cash” and “most the third straight month of big publicly traded companies 31,000 jobs since 2009, accord- roughly one-third of the U.S. solution to Peabody’s substan- economists think [the U.S. flat or declining sales. A6 that have fueled American in- ing to the Mine Safety and electric grid. Americans will Please see COAL page A11 economy] will be stronger in World-Wide Please see BANK page A2 Final Buzzer for Kobe Bryant Bank Bounce Sanders is making risky U.S. Proposes Ban Performance of J.P. Morgan moves ahead of the New shares vs. two indexes York primary in a bid to un- S&P 500 dercut Clinton. Trump is Of Theranos Founder 5% drawing support across J.P. Morgan Chase western New York state. A4 BY JOHN CARREYROU and Theranos’s president, Sunny 0 KBW Nasdaq AND CHRISTOPHER WEAVER Balwani, from owning or run- Bank index A Chicago task force on ning any other lab for at least police accountability called –5 Federal health regulators two years. That would include for sweeping changes to have proposed banning Thera- the company’s only other lab, lo- the city’s police force. A3 –10 nos Inc. founder Elizabeth cated in Arizona. A brain implant allowed Holmes from the blood-testing The two labs generate most –15 a paralyzed man to use his business for at least two years of Theranos’s revenue and are at thoughts to move his arm, after concluding that the com- thecoreofitsstrategytorevolu- researchers reported. A3 pany failed to fix what regula- tionize the blood-testing indus- –20 tors have called major problems try with new technology, user- Total spending on pre- at its laboratory in California. friendliness and quick results. –25 scription drugs in the U.S. In a letter dated March 18, The letter hasn’t been re- JFMA increased 12.2% to nearly Source: FactSet HARRY HOW/GETTY IMAGES the Centers for Medicare and leased to the public, but a copy $425 billion in 2015. B3 MAMBA: One of the NBA’s all-time top scorers hugged Laker head Medicaid Services said it plans was reviewed by The Wall Street THE WALL STREET JOURNAL. Defections by allies of coach Byron Scott at his farewell game. Magic Johnson and other to revoke the California lab’s Journal. Brazil’s Rousseff are reduc- giants paid tribute to the All-Star’s achievements over a 20-year career. federal license and prohibit its Under federal law, Theranos Greg Ip: Big banks bring ing her chances of surviving owners, including Ms. Holmes Please see HOLMES page A6 benefits, too...... A2 an impeachment vote. A7 The CDC said there is enough evidence to con- TWITTER AND ISIS clude that the Zika virus NASA Truly can cause birth defects. A3 Oracle #1 Islamic State said two WantstoGrow DEADLOCK brothers were the main or- ganizers of the attacks in Spuds on Mars Paris and Brussels. A10 IN ONLINE BATTLE Cloud ERP iii Syrian peace talks re- sumed as the regime held In Peru, fiction elections that critics de- Islamic State supporters open new accounts nounced as illegitimate. A10 and real life almost as quickly as gatekeepers delete them European Union privacy regulators called for are mashed up BY CHRISTOPHER S. STEWART brate the attacks. changes to a new EU-U.S. AND MARK MAREMONT U.S. companies such as data-transfer accord. B3 BY RYAN DUBE Twitter, Facebook and You- Hours after the Brussels Tube, joined by online hack- Russian warplanes buzzed PAMPAS DE LA JOYA, Peru— terror attacks, a notorious Is- ers and similarly minded a U.S. Navy destroyer in the As humans prepare to blast off lamic State operative posted groups, have for months ag- Baltic Sea this week, a sign of to Mars, there is still the ques- a Twitter message on behalf gressively battled the spread potentially rising tensions. A10 tion of what they’ll eat once of the extremist group, which of Islamic State material on- 1,800 207 they colonize the red planet. had taken responsibility for line. Accounts and posts that CONTENTS Opinion...... A13-15 Scientists who have traveled the slaughter and warned of would have stayed alive for Oracle Cloud Workday Cloud Business News. B2-3,6-8 Sports...... D6 Crossword...... B8 Style & Travel.... D2-4 here to the Peruvian desert say more to come. weeks now sometimes last as ERP Customers ERP Customers Election 2016.... A4-6 Technology...... B4-5 they have the answer. Potatoes. “We promise black days little as a few hours. Global Finance...... C3 U.S. News...... A2-3 Researchers at the Lima- for all crusader nations allied Islamic State supporters, “OraclehastheiracttogetherbetterthanSAP” Heard on Street.... C8 Weather...... B8 based International Potato Cen- in their war against Islamic particularly on Twitter, have Aneel Bhusri, Workday CEO In the Markets...... C4 World News...... A7-11 ter and scientists at the Na- State,” tweeted Abu al-Walid, responded to the crackdown tional Aeronautics and Space a presumed nom de guerre. by opening accounts almost > Administration are studying Twitter closed that ac- as quickly as gatekeepers de- which type of potato could be count and similar ones in the lete them. best suited for extraterrestrial hours and days that followed. This battle, a signature el- Midsize and large scale Enterprise Fusion ERP Cloud customers. farming to support a human Mr. Walid kept surfacing. Us- Please see ISIS page A12 settlement on Mars. If every- ing his 464th Twitter ac- oracle.com/modern-finance or call 1.800.ORACLE.1 s Copyright 2016 Dow Jones & Company. All Rights Reserved thing goes as planned, the Mar- count, he circulated photos of Extremists claim brothers led Copyright © 2016, Oracle and/or its affiliates. All rights reserved. Please see MARS page A12 sweets handed out to cele- attacks...... A10 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Thursday, April 14, 2016 **** THE WALL STREET JOURNAL. U.S. NEWS Be Wary of Breakups: Big Banks Bring Benefits, Too

handful of companies series of penalties that could riod, the number of accounts A have achieved such as- end in their breakup. They Really Like Us at banks with less than $10 tonishing size and reach The preoccupation with Big banks in a recent survey surpassed their smaller competition in customer-satisfaction levels, billion in assets dropped by in the past decade that the banks’ size is well-founded. due in part to high marks from the millennial generation and minority groups. 35 million. sudden collapse of any would The havoc when big banks fail, Investment in technology be potentially catastrophic to and the perception the gov- J.D. Power Customer Satisfaction Index Regional banks Midsize banks Big banks has huge fixed and low mar- the economy. With their size, ernment won’t let that hap- OVER TIME BY GENERATION BY RACIAL GROUP ginal costs, and thus gives they have accu- pen, enables them to borrow 850 an advantage to size. The Bi- mulated profits cheaply and grow still larger. partisan Policy Center report and political Yet as in technology, size notes large banks were the clout to match, confers unique benefits in first to offer automated- at times defying banking: economies of scale 800 teller machines, online bill the federal gov- in technology, branding and payment and small-business CAPITAL ernment’s ef- risk management; network credit scoring. Economies of ACCOUNT forts to keep effects that attract custom- scale may also apply to risk GREG IP Americans safe. ers; and broad geographic 750 management and regulation. I’m talking, and sectoral diversity. If reg- of course, about ulators ignore these attri- ig banks also make big Apple, Google, Facebook and butes while dwelling solely mistakes, but this Pre- Baby B Amazon. on the danger of size, they 700 boomer boomer Gen X Millennials White Black Asian Hispanic doesn’t automatically But I could also be talking risk leaving the economy 2010 ’11 ’12 ’13 ’14 ’15 ’16 mean they are more prone to about J.P. Morgan Chase, worse off, not better. failure. With size comes Note: Each year's surveys were conducted over a period that spanned calendar years. With the exception of the most recent data, they have Bank of America, Wells Fargo That was the implicit been pegged to the first date of the year for which final figures were released. The most recent figures are pegged to the release of each wave greater diversification across and Citigroup. message that U.S. District of figures, as the final release is yet to come. Big banks include Bank of America, Chase, Citibank, PNC, US Bank and Wells Fargo. regions, industries and busi- The difference is that no Judge Rosemary Collyer de- Source: J.D. Power & Associates THE WALL STREET JOURNAL. ness lines, and thus less vol- one wants to break up the livered in a decision, un- atile revenue. One study first group but everyone, it sealed last week, that re- reasoned rule making.” cal weapon in the crisis-pre- trivial, as a 2014 report by found that when geographic seems, wants to break up the versed the federal The decision puts the fed- vention arsenal. the Bipartisan Policy Center, restrictions on branch bank- second. “Apple is not de- government’s designation of eral government in a bind. a think tank, notes. ing fell, more-efficient banks stroying the fabric of Amer- the giant insurer MetLife as One of the lessons of the fi- et it also makes a use- Big banks are no match for gained market share, loan ica,” Bernie Sanders, a Demo- a “systemically important fi- nancial crisis was companies Y ful point. Because a fi- Apple in the affections of hip- losses declined and custom- cratic presidential candidate, nancial institution” in need such as American Interna- nancial crisis, like a sters, Hollywood or Mr. Sand- ers benefited. told the New York Daily of special oversight and tional Group, an insurer, can terrorist attack or pandemic, ers, but one constituency Big banks need stiffer News last week. “J.P. Morgan heightened capital standards. be just as intertwined with is so unpredictable, the value seems to rather like them: regulation and higher capital Chase, and virtually every The court rapped the Fi- the financial system as of preventing one is not eas- consumers. Their satisfaction to neutralize the harm their other major bank in this nancial Stability Oversight banks. If rules are tightened ily quantified. But that too ratings have risen steadily failure could inflict on the country,” he added, are de- Council, made up of federal only on banks, risky activity easily becomes an excuse to since 2010 and now top those economy and to remove any stroying the national fabric. regulators and headed by the is likely to migrate to these ignore costs altogether, of regional banks, according subsidy that their too-big-to- While federal regulators Treasury secretary, for say- nonbank institutions. That’s whether to civil liberties or to J.D. Power. Bank of Amer- fail status garners. Antitrust haven’t sought the breakup ing MetLife’s failure could why the Dodd-Frank finan- economic growth. ica, J.P. Morgan Chase, Citi- cops should bar them from of the big banks, on Wednes- damage the economy but not cial-regulatory overhaul em- In the case of big finan- bank, Wells Fargo and US using their size to quash day they warned five of detailing how such a failure powers the FSOC to desig- cial companies, regulators Bank added nearly 25 million competitors. The endgame is them they had inadequate could occur. Nor did it con- nate a nonbank as have to weigh the benefits of retail deposit accounts be- not, however, to drive such plans to deal with a possible sider the costs of regulating systemically important. The size against the risks that tween 2010 and 2014, during banks out of existence; that’s failure. Without acceptable MetLife like a bank, “a con- court decision, if upheld, big banks become “too big to which they were barred from a decision customers and “living wills,” banks face a sideration that is essential to could compromise this criti- fail.” Those benefits aren’t acquisitions. In the same pe- shareholders can make.

results “bode well for the oth- lion, down 3%, also beat ana- earning assets rose to 2.3% Daniel Pinto, said in mid-Feb- the lowest level in two years. BANK ers.” lysts’ expectations, while the from 2.23% in the fourth quar- ruary that trading fell 20% in J.P. Morgan has paid out bil- Investors drove shares of bank intensified its cost cuts, ter and 2.07% a year earlier. the early part of the quarter lions of dollars in settlements J.P. Morgan, Bank of America reducing expenses 7%. “The consumer showed no because of less debt and equity over the past several years, ContinuedfromPageOne and Wells Fargo higher, de- Consumer loans rose 12% to signs of the feared recession,” capital-markets activity. but Mr. Dimon recently wrote the later part of this year, not spite all three being told by $448.85 billion, owing largely said Evercore analyst Glenn Similarly, the investment- in his annual shareholder let- weaker.” federal regulators Wednesday to a 37% increase in mortgages Schorr in a research note. banking revenue drop of 25% ter that many legal and regula- Analysts said the results that they would have to re- that the bank added to its In trading and investment to $1.32 billion, roughly in line tory issues that J.P. Morgan could prove a turning point for write plans, known as “living books. Commercial-banking banking, the first quarter was with analysts’ expectations, and the banking industry have banking stocks, in large part wills,” of how to handle a po- loans rose 13% to $173.92 bil- weak, as expected, but may turn around again in com- faced are beginning to dissi- because the report suggests tential bankruptcy without lion, as a 31% increase in real- strength in the last few weeks ing quarters, as markets stabi- pate. banks are starting to dig out of taxpayer support. The KBW estate lending overcame weak- of the quarter—spurred in part lize and deals that were put off There are still trouble spots. some of the troubles they have Nasdaq Bank Index and J.P. ness in the oil patch. by a rebound in stocks—has in the first quarter resurface. J.P. Morgan set aside $1.82 bil- long struggled to overcome— Morgan shares both had their Also, J.P. Morgan and other been followed by early opti- J.P. Morgan Chief Financial Of- lion in the first quarter to sluggish trading, lackluster third-best trading day of the large consumer banks like mism about the second quarter ficer Marianne Lake said she is cover loans that could poten- consumer demand, tough capi- year and hit three-month Wells Fargo and Bank of Amer- from executives. “optimistic” about the merger tially turn bad in the future, tal rules and profit-sapping highs. European bank stocks ica benefited from a December J.P. Morgan’s trading reve- pipeline if recent trends con- nearly twice what it set aside low interest rates. Bank of also rose sharply. Federal Reserve rate increase nue decreased 11% to $5.17 bil- tinue. in the first quarter of 2015. America Corp. and Wells Fargo The bank said first-quarter that many investors have now lion from $5.81 billion in the Another positive for J.P. The increase in reserves was & Co. report results on Thurs- profit fell 6.7%, to $5.52 billion, moved on from to focus on first quarter of 2015 but up Morgan and other banks is the primarily driven by down- day. or $1.35 a share. That topped whether the Fed will hold off from $3.64 billion in the fourth improving litigation picture. grades to loans in the bank’s Financial shares have been a the $1.26 expected by analysts. on future rate rises. The bank quarter. The bank’s corporate The bank recorded no material oil, gas, metals and mining drag on the overall market this Adjusted revenue of $24.1 bil- said its net yield on interest- and investment bank head, legal costs in the first quarter, portfolios. year. They are still down about 4% in 2016, the worst perform- THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) ing sector in the S&P 500, de- CORRECTIONS AMPLIFICATIONS Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 spite Wednesday’s gains. At its Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. lowest point this year the in- POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. dex was down almost 18%. Brazil’s Progressive Party correctly said it has 47 act- incorrectly gave his age as 44. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of the Americas, New York, N.Y. 10036. J.P. Morgan’s results could has 46 acting federal depu- ing federal deputies. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. show that investors grew too ties and five elected deputies A photo with a Business Letters to the Editor: Fax: 212-416-2891; email: [email protected] pessimistic, some analysts on leaves of absence. A Former President Richard News article Tuesday about said. “Investors’ sentiment go- World News article in some Nixon was 48 years old in 1961 mining in Africa was taken in NEED ASSISTANCE WITH YOUR SUBSCRIPTION? ing into this quarter was as editions Wednesday about when he hit a hole-in-one at Bel 2014. In some editions, the CONTACT CUSTOMER SUPPORT. negative as we’ve seen in a the party’s withdrawal from Air Country Club. A Sports arti- photo caption incorrectly gave By web: customercenter.wsj.com number of years,” said Gerard Brazil’s ruling coalition in- cle Monday about the Masters the year as 2104. By email: [email protected] By phone: 1-800-JOURNAL (1-800-568-7625) Cassidy, a bank analyst at RBC Or by live chat at wsj.com/livechat Capital Markets. J.P. Morgan’s Readers can alert The Wall Street Journal to any errors in news articles by emailing [email protected] or by calling 888-410-2667.

ANNIVERSARY SALE BARNEYS.COM

NEW YORK BEVERLY HILLS SAN FRANCISCO CHICAGO

BOSTON LAS VEGAS SCOTTSDALE SEATTLE SAVE $150 FOR INSIDER ACCESS: THEWINDOW.BARNEYS.COM ON THE FIFTH AVENUE ENJOY UP TO $100 OFF MANY OTHER SELECTED STYLES THROUGH APRIL 25TH AVAILABLE IN-STORE OR AT ALLENEDMONDS.COM CIFONELLI

ISAIA

ERMENEGILDO ZEGNA

SAME DAY DELIVERY

AVAILABLE IN MANHATTAN AND

SELECT BROOKLYN ZIP CODES

©2016 Allen Edmonds Corporation. Offer valid from 4/8/2016 through 4/25/2016. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ***** Thursday, April 14, 2016 | A3 U.S. NEWS ©T&CO. 2016 New Hope for the Paralyzed TIFFANY T COLLECTION

Brain implant allows quadriplegic to use thoughts to move his arm, a breakthrough

BY AMY DOCKSER MARCUS

A paralyzed man used an im- plant in his brain and his thoughts to move his arm, marking an advance in a de- cadeslong effort to restore movement to people with spi- nal-cord injuries. Ian Burkhart, 24, became a quadriplegic five years ago af- ter a diving accident. Messages from his brain to move his limbs can’t get to other parts of the body due to damage to his

spinal cord. OHIO STATE UNIVERSITY WEXNER MEDICAL CENTER/BATTELLE/HO/REUTERS Researchers from Ohio State Quadriplegic Ian Burkhart was able to move his arm after having a ‘neural bypass’ device implanted. University and Battelle Memo- rial Institute implanted a tiny his own hands,” said Chad E. Mr. Burkhart has a transmit- just your grip.” device in Mr. Burkhart’s motor Bouton, one of the authors of ter on his head that has to be For now, one of the major cortex, the part of the brain the article and vice president of plugged in to work. Brain sig- obstacles is the small market that controls movement. The advanced engineering and tech- nals change depending on ev- size. Spinal-cord injuries affect device acts as a “neural by- nology at the Feinstein Institute erything from the temperature approximately 150,000 people pass,” picking up the brain sig- for Medical Research in Man- in the room to what someone is in the U.S., and not all of them nals and sending them to a hasset, N.Y., who was previously focusing on, and the algorithm are eligible to use such a de- computer that decodes them, at Battelle. that decodes those signals has vice, said Peter Konrad, profes- the researchers wrote in the The work comes at a time to adjust in real time. The abil- sor of neurosurgery at Vander- science journal Nature. when the field of “brain-com- ity of the electrodes to transmit bilt University and vice Mr. Burkhart sits in front of puter interfaces” is receiving an clear signals can erode over president of the North Ameri- a computer that shows a virtual infusion of federal money and a time. Meantime, Mr. Burkhart can Neuromodulation Society. 800 843 3269 | TIFFANY.COM hand demonstrating a move- push to create applications that eventually may need to have Researchers are also study- ment. He then imagines making could eventually have practical the brain implant removed, due ing the use of such devices in the movement. The brain sig- uses in patients. in part to concern about infec- people with other conditions, nals are transmitted and de- Last year, researchers led by tion. including stroke and ALS, or coded, and then electrical stim- a team at the University of Cali- “The goal is to eventually get amyotrophic lateral sclerosis, ulation is delivered to the fornia, Los Angeles published a this out of the lab and make it although it isn’t clear whether muscles using a sleeve embed- study showing five men with available beyond one or two re- extracting brain signals from MEN’S SPRING ded with electrodes that wraps paralysis making step-like search subjects,” Dr. Rezai said. such patients might differ. around his arm. movements through electrical Mr. Bouton said researchers Mr. Burkhart lives with his In an experiment, Mr. Bur- stimulation to the spinal cord. think not only about how to re- father and stepmother near Co- WA R D R O B I N G khart performed routine tasks And BrainGate, a multi-institu- store movement, but how to lumbus, Ohio, studies business that involve very complex hand tional project that is developing make it natural. Everyday ac- management in college and and finger movements, includ- and testing its own neural-im- tions, such as shaking some- helps coach the high-school la- ing grasping a bottle, pouring plant system, has shown pa- one’s hand, are actually a com- crosse team for which he used its contents into a jar, and pick- tients able to control a key- plex process, he said. to play. %* ing up a stick and stirring the board and move a robotic arm. Scientists are trying to find “I would like to be able to do contents. Ali Rezai, director of Ohio ways to give patients sensory things on my own instead of OFF “The uniqueness is, for the State’s Center for Neuromodu- feedback, too. asking for help or waiting for ourownSaksFifthAvenueCollection first time, we link brain signals lation and one of the Nature pa- “Touch is so important for someone else to help me with 30 for him during the twice-yearly event, in a high-fidelity and reproduc- per’s authors, said the system this technology,” he said. it,” he said. “The things I do in nowinstoresandonsaks.com ible fashion within milliseconds currently can be used only in “When you shake hands, you the lab, I would love to have in to an individual who can move the lab. want to feel the hand and ad- everyday life.” CDC: Zika Virus Can Chicago TaskForce Calls ForOverhaul of City’s Police Cause Birth Defects BY MARK PETERS community. The panel’s recom- BY BETSY MCKAY “There is no longer any AND JOE BARRETT mendations—which included doubt that Zika causes micro- posting officer disciplinary re- The Centers for Disease cephaly,” CDC Director Tom CHICAGO—A city task force cords online—will go to Mr. Control and Prevention Frieden said. on police accountability called Emanuel and the City Council. said Wednesday that enough The CDC said its declara- for sweeping changes to the na- The report called for new SaksFirst members get an EXTRA 10% OFF evidence has accumulated for tion won’t change its current tion’s second-largest police de- oversight—including replacing whenyoushopwithyourSaksFirstcard** it to conclude that the Zika vi- warnings for pregnant women partment Wednesday—including the Independent Police Review rus can cause birth defects in regarding travel to countries acknowledging a history of ra- Authority, which investigates the infants of women who are where Zika is circulating, or cial discrimination and disband- police shooting and complaints NowthroughSunday,April17 infected during pregnancy. its guidance for preventing the ing an agency in charge of inves- of excessive force. In a paper published in the spread of Zika through sexual tigating officer misconduct. The task force report came New England Journal of Medi- transmission. The task force was created on the same day the council cine, the agency said several es- But the agency said it hopes by Mayor Rahm Emanuel in approved Mr. Emanuel’s selec- tablished criteria to determine that declaring Zika a cause of December after the release of tion of Eddie Johnson, an Afri- a causal relationship have been birth defects in children will footage showing a police offi- can-American department vet- met, including Zika infection in help to intensify efforts to cer fatally shooting 17-year-old eran, as police superintendent. mothers whose babies devel- raise awareness of the risks of Laquan McDonald in 2014. The A message left with the oped microcephaly—in which Zika infection, control the video sparked calls for change. president of the Fraternal Or- the head is small for gestational mosquitoes that spread the vi- The task force found wide- der of Police Chicago Lodge 7, *OFFER VALID ON SAKS FIFTH AVENUE COLLECTIONS FOR MEN ONLY. NO ADJUSTMENTS TO PRIOR PURCHASES. EXCLUDES SAKS FIFTH AVENUE OFF FIFTH STORES, GIFT WRAP,TAXES AND SHIPPING. OFFER VALID 3/31/16 THROUGH 4/17/16. age and sex—and other severe rus and develop a vaccine spread distrust of the depart- the city’s largest police union, ** OFFER IS SUBJECT TO CREDIT APPROVAL FOR NEW CARDHOLDERS. SAKS CARD HOLDERS ENTER PROMOTIONAL CODE SFAMC16 brain abnormalities. against it. ment in the African-American wasn’t returned. FOR THE ADDITIONAL 10% OFF ON SAKS.COM.

NEW YORK NY 625 MADISON AVENUE 675 FIFTH AVENUE THE SHOPS AT COLUMBUS CIRCLE 2151 BROADWAY 118 SPRING STREET GARDEN CITY NY ROOSEVELT FIELD WHITE PLAINS NY THE WESTCHESTER GREENWICH CT 120 GREENWICH AVENUE STUARTWEITZMAN.COM For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Thursday, April 14, 2016 PWLC101112HTGKBFAM123456789OIXX **** THE WALL STREET JOURNAL.

Sanders Makes Bold—and Risky—Moves

Trip to Vatican, harsh of the Hudson River. Stay here more caustic about the six-fig- sociated Press tally shows that where you belong,’ “said Hank ure fees Mrs. Clinton earned in in what has been his most suc- attacks on Clinton and Sheinkopf, a New York-based speeches to New York financial cessful stretch, the last nine her husband precede a Democratic strategist not firms. “Not bad for a day’s contests have only cut into her aligned with either candidate. work,” he said at a recent rally lead by 71 pledged delegates. crucial April 19 vote Leading up to the primary, in Albany. He is taking aim at Mrs. Clinton currently enjoys a Mr. Sanders has also escalated what polls show is one of Mrs. lead of 251 pledged delegates. BY PETER NICHOLAS criticism of both Mrs. Clinton Clinton’s biggest points of vul- That makes the New York and her husband, former Presi- nerability: perceptions that primary close to a must-win ALBANY, N.Y.—Sen. Bernie dent Bill Clinton, who remains she is too close to Wall Street. proposition for Mr. Sanders, Sanders is taking some of the a popular figure in the party. At a recent speech in Roch- some Democrats say. boldest and potentially riskiest Only 9% of Democrats said ester, he faulted her for bene- Steve McMahon, a Demo- steps of his campaign ahead of they viewed Mr. Clinton nega- fiting from super PACs that cratic strategist who isn’t the crucial New York primary, tively in a Wall Street Journal/ take money from financial in- aligned with either candidate, hoping to raise his profile and NBC News poll in February. terests. Wall Street has given said: “For Bernie to have any undercut Hillary Clinton’s sup- Appearing in New York’s more than $17 million to out- hope of ultimately prevailing, port among a key part of the Harlem neighborhood last side groups backing her, ac- he’s got to start winning every

Democratic electorate. week, Mr. Sanders said at a fo- cording to the nonpartisan CRAIG RUBADOUX/FLORIDA TODAY/ASSOCIATEDbig PRESS state by big margins. If he After his debate with the rum devoted to race relations Center for Responsive Politics. Democratic rivals Bernie Sanders and Hillary Clinton wave to the doesn’t win New York, he’s go- Democratic presidential front- that the welfare overhaul Brian Fallon, a spokesman audience at the Miami Dade College Kendall Campus last month. ing to soon look like a spoiler runner on Thursday, Mr. Sand- signed by Mr. Clinton in 1996 for Mrs. Clinton’s campaign, and not an insurgent.” ers will leave the U.S. to ap- was a campaign ploy to win said Mr. Sanders’s latest tac- create a united front against at a make-or-break point in his People close to Mr. Sanders pear at an academic voters at the expense of the tics undercut his vow to focus Republicans in the general candidacy. He continues to say he has no interest in play- conference at the Vatican de- poorest Americans. his campaign on issues. “In the election. But Mr. Sanders’s at- draw boisterous crowds of ing that role—weakening Mrs. voted to themes of economic “Bernie is a fighter, and he last week, Sen. Sanders has tacks are resonating with his young supporters. On Wednes- Clinton to the point that she and social justice. Both issues understands clearly what he questioned Hillary Clinton’s voters. At rallies, he typically day, he picked up endorse- might lose in November. are at the core of Mr. Sanders’s needs to do to move forward,” qualifications, her judgment doesn’t try to silence the ments from New York City’s John Franco, a longtime message. But some Democrats said Gary De Carolis, an ally and most recently her credibil- crowd when they start to boo transit union and also Sen. Jeff friend of Mr. Sanders, said in are baffled as to why he would when Mr. Sanders was mayor ity,” he said. “If that doesn’t at the mention of her name. Merkley of Oregon. Mr. Merk- an interview he recalled an drop off the campaign trail for of Burlington, Vt., in the 1980s. amount to a personal attack, I A Wall Street Journal/NBC ley becomes the first of Mr. early discussion in which Mr. two days before the April 19 “He will be tougher and don’t know what does.” News/Marist poll this month Sanders’s Senate colleagues to Sanders made clear he didn’t primary, where more delegates tougher on the issues that he The moves by Mr. Sanders showed that 30% of Sanders endorse him. want to be a “spoiler.” “That are at stake than in any other thinks [Mrs. Clinton] is vulner- could test Democratic unity. supporters in New York said Despite winning eight of the conversation was settled in state save California. able on.” Should she win the nomina- they wouldn’t back Mrs. Clin- last nine contests, Mr. Sanders five minutes,” Mr. Franco said. “My advice to Bernie would In campaign stops in New tion, Mrs. Clinton will need to ton in the general election. hasn’t put Mrs. Clinton’s lead —Laura Meckler be: ‘Don’t go to the other side York, Mr. Sanders has grown rally Sanders supporters and Mr. Sanders’s moves come in jeopardy. A preliminary As- contributed to this article.

InHouseRace,GOPChallengerHailsTrump HHHHH CAMPAIGN BY SIOBHAN HUGHES GOP congressman in nearby districts have already endorsed WIRE ROCHESTER, N.Y.—Two Mr. Trump, including Rep. HHHHH years ago, a little-known Re- Chris Collins, who was the first publican town supervisor al- member of Congress to do so. most unseated Democratic Mr. Trump’s calls for a new DEMOCRATIC PRIMARY Rep. Louise Slaughter, one of approach to trade deals is res- the lions of the New York con- onating in a region beset by Oregon Sen. Merkley gressional delegation, in the economic challenges. Eastman Endorses Sanders closest race she has faced Kodak, the iconic Rochester Sen. Jeff Merkley of Oregon since her first election to the photography company that endorsed Bernie Sanders for House three decades ago. employed 145,000 people president on Wednesday, becom- This year, the same GOP world-wide at its peak, has just ing the first member of the U.S. challenger, Mark Assini, thinks a fraction of its former work- Senate to back him and breaking he may be able to win, even force. General Motors Co. from the large majority of Demo- though Democratic turnout closed a plant in recent years. cratic leaders who are supporting tends to be higher in a presi- And last year, SentrySafe said front-runner Hillary Clinton. dential-election year. His it would move facilities from He cited Mr. Sanders’s com- weapon, he believes, is Donald the Rochester area to Mexico mitment to tackling climate Trump, who has been drawing and Wisconsin, eliminating change, the campaign-finance thousands of supporters across hundreds of local jobs. system, banking interests and western New York, an econom- “I’m the only one who free-trade agreements that Mr. ically distressed area that finds knows how to stop it,” Mr. Sanders says move good jobs the GOP presidential front-run- Trump said Sunday in Roches- overseas and undermine Ameri- ner’s brand of populism ap- ter, using the safe maker to can workers. pealing. give a local flavor to his calls —Laura Meckler Some Republican leaders for slapping tariffs on imports have been anxious, and some to stop production from being STATE DEPARTMENT

Democrats gleeful, about the ALEX WONG/GETTY IMAGES shifted to other countries. “I down-ballot effects of a Trump Rep. Louise Slaughter (D., N.Y.), in Washington in January, faces a challenge from a Trump supporter. would have stopped them so Kerry Reaffirms U.S. nomination, given the real-es- fast your heads would spin.” Opposition to Torture tate developer’s high unfa- Mich.) told some of her party’s that I don’t agree with him state that his ability to help— Voters here find the clarity Secretary of State John Kerry vorability ratings among many leaders at the meeting, accord- on,” Mr. Assini said in an inter- or hurt—down-ballot Republi- of such messages appealing, reaffirmed U.S. opposition to tor- groups of voters. But in the ing to people who heard her view. “But the one strength he cans will be most tested if he even if business and political ture on Wednesday, an allusion white, working-class districts remarks. has is his economic policy. is the nominee. That is because leaders warn that Mr. Trump, to support voiced by two Repub- such as those that are typical That perception is why Mr. We’ve had politicians try and New York is one of the few if elected, risks touching off a lican presidential candidates for a in western New York, there is a Assini stood outside for hours they haven’t done very well. states where congressional dis- trade war that could cripple return to harsh interrogation different story, which even Sunday in freezing tempera- Let’s try a businessperson.” tricts weren’t drawn for parti- the U.S. economy. methods. some Democrats acknowledge. tures to shake hands with the Ms. Slaughter declined to be san advantage, so it has nine “As far as me voting Repub- Mr. Kerry didn’t single out any In a re-election strategy thousands of people lined up interviewed for this article. congressional races that are lican, there’s a very good candidate or party, instead say- meeting at the Democratic to see Mr. Trump speak at an Her aides pointed to a memo competitive or have the poten- chance that I will vote that ing he wanted to remove any Congressional Campaign Com- airplane hangar outside of circulated by her campaign tial to be, according to the way,” said Darlene Dunn-Laf- doubts “caused by statements” mittee last month, at least one Rochester. Even in conversa- that describes Mr. Assini as a Cook Political Report. fredo, a Democrat from Roch- others have made. lawmaker cautioned against tions with those constituents person with extreme views, One of those nine districts ester who once worked at GM. Leading Republican candidates not taking Mr. Trump seri- turned off by Mr. Trump, Mr. citing, among other things, his is Ms. Slaughter’s, which cov- Onboard a bus to Mr. Trump’s Donald Trump and Ted Cruz have ously, participants said. Assini explains why he would support for Mr. Trump. ers the Rochester region. Pres- rally, she says the GOP candi- suggested that they would use “With all due deference to align with the businessman, Mr. Trump holds a com- ident Barack Obama easily car- date has the “right idea” when waterboarding and other “en- you all, I think Donald Trump whom he expects to be the manding lead in polls ahead of ried the district in 2012, and he proposes steep tariffs on hanced” techniques against ter- is going to be harder than you party’s nominee. next week’s primaries in New Ms. Slaughter won re-election goods imported from low-cost ror suspects held by the U.S. think,” Rep. Debbie Dingell (D., “There are a bunch of things York, and it is in his home by 14 points that year. But two countries. —Felicia Schwartz

Ryan’s Fundraising Hits Record POLITICS COUNTS | Aaron Zitner

BY JANET HOOK Republican in the Senate. those thorny fights are “all on Primary Distinction AND KRISTINA PETERSON His fundraising haul and the horizon and they’re going self-discipline illustrate Mr. to have to be dealt with,” said New York voters are more likely to describe themselves as moderates WASHINGTON—House Ryan’s commitment to helping Rep. Raul Grijalva (D., Ariz.), Speaker Paul Ryan of Wiscon- the party keep control of the co-chair of the Congressional than Republicans and Democrats who have voted in nominating sin doesn’t want to be the Re- House through a tumultuous Progressive Caucus. contests so far. But the racial and class makeup of the state’s voter publican nominee in this year’s presidential election. They also If Democrats win the White presidential election, but his suggest that Mr. Ryan is work- House and take back control of pool looks much like that of prior electorates viewed in the aggregate. high-profile presence and be- ing to polish his standing as a the Senate in November, Mr. hind-the-scenes work raising party leader and could be Ryan would be the most pow- money for the GOP could posi- amassing a power base from erful Republican in Washing- tion him to seize the spotlight which he could run in 2020, ton, but would still have lim- REPUBLICANS DEMOCRATS four years from now. when the 46-year-old speaker ited power to implement GOP New York New York Mr. Ryan raised $17.2 mil- would be a still-youthful 50. policy. Some conservative Prior electorate* Prior electorate* lion in the first three months groups are frustrated that a RACE 91% 58% of 2016, outpacing his prede- The House speaker host of task forces set up by White cessor as speaker, John Boe- Mr. Ryan have yet to produce 90 63 hner, as GOP fundraiser-in- ‘puts a great face substantive Republican legisla- EDUCATION 52% 58% chief, according to reports and voice on the tion overhauling the tax code College graduate filed Wednesday with the Fed- and welfare system or replac- 52 53 eral Election Commission. Republican brand.’ ing the 2010 health-care law. INCOME More than $11 million of the Notably, internal divisions 29% 41% Under $50,000 money Mr. Ryan raised from among Republicans have sty- 29 42 January through March went “Certainly the White House mied them so far from passing 71% 59% Over $50,000 to the National Republican is something that would be a budget blueprint this year, 70 59 Congressional Committee, the available and something you an embarrassment for Mr. GENDER House GOP campaign arm, sur- might see Republicans really Ryan, a former Budget Com- 56% 38% Male passing the $7 million record applying pressure on him to mittee chairman. 51 43 set by Mr. Boehner in the sec- do,” said fellow Wisconsin Re- Although he has said flatly Female 44% 62% ond quarter of 2012. publican Rep. Reid Ribble. many times that he wouldn’t 49 57 The report covers the first Still in his first year as run for president in 2016, IDEOLOGY full fundraising quarter since House speaker, Mr. Ryan’s job many Republicans have specu- 61% 51% Conservative Liberal Mr. Ryan became speaker in will become more difficult next lated—or wished—that he 75 61 late October 2015, a job he spring, when Congress will could emerge as an alternative 39% 49% took reluctantly after party contend again with raising the candidate if they have a dead- Moderate/ Moderate/ liberal 25 conservative 41 turmoil led to Mr. Boehner’s government’s borrowing limit locked or contested convention resignation. to avoid any chance of default- in Cleveland in July. *Aggregate data, weighted for size of state, for 16 states that held nominating contests this year and for which there are exit polls. Mr. Ryan “puts a great face ing on the debt. Mr.Ryanheldanewscon- Some numbers do not add up to 100% due to rounding and voice on the Republican “You can continue to post- ference Tuesday to end the Source: WSJ/NBC News/Marist poll of New York, April, 2016 (New York likely electorate); Public Opinion Strategies analysis of exit polls (electorates for prior contests). THE WALL STREET JOURNAL. brand,” said Sen. John Cornyn pone some of the inevitable speculation. “Count me out,” of Texas, the second-ranking through the election,” but he said bluntly. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | A5

Clinton StandingIssueforImmigrationSuit

SeeksUnit States’abilitytobring caseagainstObama ToHelp planrestsonclaimover Migrants driver’slicensefees BY LAURA MECKLER BY JESS BRAVIN AND MIRIAM JORDAN NEW YORK—Seeking to press her case to Latino vot- The 26-state challenge to ers, Democratic presidential the Obama administration’s im- front-runner Hillary Clinton migration policy, scheduled for said Wednesday she would Supreme Court argument Mon- create a national Office of Im- day, comes wrapped in rhetoric migrant Affairs that would co- about the separation of powers ordinate government policy on and brims with implications for the issue if she reaches the the November elections. White House. But the outcome may hinge The announcement came in on something more mundane: conjunction with an endorse- Texas driver's license fees. ment of Mrs. Clinton by the That is because the states’ New York State Immigrant Ac- legal ability—known as stand- tion Fund, one of New York’s ing—to bring the case rests on largest immigrant-rights Texas’ claim it would have to groups, and less than a week subsidize the cost of licenses to before the state’s Democratic people qualifying for the plan, primary, where a substantial called the Deferred Action for portion of voters are expected Parents of Americans. The plan to be Hispanic. would provide work authoriza- The new office would coor- tions and a temporary reprieve dinate programs across fed- on deportation to millions of il- eral, state and local govern- legal immigrants whose chil-

ments, and would work to help dren are U.S. citizens. JAY JANNER/TRIBUNE NEWS SERVICE/ZUMA PRESS integrate immigrants, refugees Texas charges $24 for a li- Activists in Austin, Texas, protest a legal challenge to the Deferred Action for Parents of Americans, also known as DAPA. and their children into com- cense, but says it costs nearly munities, the Clinton campaign $200 to process an application. increased the chance of 4-4 she was brought illegally by The administration said the cisely the sort of magnet for said. An aide said the office Because immigrants with tem- splits. The standing issue—one her parents. plan is similar to temporary ac- unlawful immigration that Con- would help undocumented im- porary status can request li- of great importance to several In an interview, she said she tions by previous administra- gress sought to avoid,” its legal migrants as well as those in censes, “Texas therefore would justices, including Chief Justice had envisioned “finally” getting tions to assist specific alien brief said. the U.S. legally. lose millions of dollars if even a John Roberts—could offer a a driver’s license, working le- populations lacking legal sta- “The job of the president is Mrs. Clinton said she would small fraction of DAPA-eligible route to avoid a potential tie. gally to support her two U.S.- tus, and simply formalizes the not to make law,” Texas Attor- propose $15 million in compet- aliens applied for driver’s li- “I think this is going to end born children and living with- discretion the president al- ney General Ken Paxton, a Re- itive grants to fund community censes,” the state said. up being another civil proce- out fear of being deported. Her ready holds over immigration publican, said in an interview. navigators who would help The Justice Department dure case where we’re talking hopes were disrupted by the le- enforcement. “He is supposed to execute the guide people through the im- counters that Texas has no about what standing means, gal challenge, she said. A federal district judge in laws that Congress puts in migration system. She would business being in court at all. with nothing to do with immi- She rarely ventures more Brownsville approved the Texas front of him.” also work to help people eligi- “The cost to Texas of subsi- gration altogether,” said Kit than a few miles from her challenge on the driver’s-li- A victory for the administra- ble to become citizens, a pro- dizing temporary visitor Johnson, a law professor at the home, to avoid passing a bor- cense basis, and in February tion wouldn’t conclusively de- cess she said was too complex. driver’s licenses for aliens—is University of Oklahoma. der-patrol checkpoint. “I feel 2015 issued a nationwide in- termine the lawfulness of the Mrs. Clinton and her rival, entirely self-generated,” the Some 4.1 million parents of imprisoned,” she said. junction barring the program’s deferred-action plan, but it Sen. Bernie Sanders of Ver- government said in a brief sug- U.S. citizens and legal perma- Last year, she and two other implementation. In November, would allow it to take effect mont, have sought to paint gesting that Texas could charge nent residents could benefit immigrants entered the court the Fifth U.S. Circuit Court of while Texas litigates the matter themselves as the stronger the full cost of issuing licenses. from the Obama plan. case on the side of the Obama Appeals in New Orleans upheld at a trial court. Secretary of supporter of immigrant rights. “If such self-imposed harms Immigrants filled workshops administration. “I feel frus- the injunction, based on the Homeland Security Jeh John- The Sanders campaign on were sufficient, then states at churches, community cen- trated that I can’t take advan- claim that the Department of son said the department is pre- Tuesday spotlighted Mrs. Clin- could force disputes over a ters and schools across the U.S. tage of opportunities here to Homeland Security didn’t fol- pared to implement it quickly if ton’s onetime opposition to wide swath of federal policies.” to learn about the program af- give my children a good life,” low proper administrative pro- the injunction is lifted. granting driver’s licenses to The Supreme Court has been ter it was announced, among she said. cedures in issuing the policy. If the court deadlocks, the undocumented immigrants, taking pains to reach consensus them a 28-year-old Mexican The Obama plan, announced The Texas coalition contends lower-court injunctions would while Mrs. Clinton hit Mr. decisions after the February woman involved in the case in November 2014, is limited to President Barack Obama acted remain in place, likely freezing Sanders this week for voting death of conservative Justice and identified publicly as Jane people with clean records contrary to federal law. By pro- the program for the rest of the against a 2007 immigration Antonin Scalia, which left the Doe 2. She has spent half her whose children are U.S. citizens viding work permits, the ad- Obama administration and into overhaul. court with eight justices and life in McAllen, Texas, where or lawful permanent residents. ministration would create “pre- the next presidency. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6 | Thursday, April 14, 2016 NY/NE ** THE WALL STREET JOURNAL. U.S. NEWS Weak Start to 2016 Fits Familiar Pattern

BY JEFFREY SPARSHOTT day. The Fed meets April 26-27. Some economic indicators The U.S. economy is again have been robust. The labor off to a poor start to the year, market, for example, has pow- clouding the outlook and vali- ered through soft patches and dating the Federal Reserve’s added nearly 1.5 million jobs wait-and-see posture on rais- over the past six months. The ing interest rates. Fed’s “beige book” survey, re- Falling corporate profits are leased Wednesday, covering already constraining business economic conditions into early investment, and a strong dol- April, said an economic expan- lar is restraining exports. Now, sion in most of the U.S. has renewed caution among Amer- been supported by firming la- ican households is holding bor markets, rising wage pres- back consumer spending, sty- sures and modest increases in mieing a key growth driver. consumer spending. “The economy appears to Still, the latest retail-sales have stumbled out of the gate figures highlight some of the again this year,” said Jim Baird, broader forces restraining the chief investment officer at overall economy. Auto sales set Plante Moran Financial Advisors. a record in 2015 but have been A 0.3% drop for retail sales disappointing so far this year, in March, according to Com- tumbling last month. Ameri- merce Department figures out cans also cut back on discre- Wednesday, marked the third tionary spending at restaurants straight month in which sales and bars, clothing stores and have been flat or falling. department stores in March. Slow starts are nothing Rising gasoline prices

new, leaving plenty of hope SPENCER PLATT/GETTY IMAGES boosted the value of purchases that better months are ahead. Retail sales fell 0.3% in March after declines in January and February. Here, a shopping mall in New York City last month. at service stations. Sales also Gross domestic product, a climbed at building suppliers, broad measure of economic quarter of 2016 echo the pat- vance in the closing quarter of for the first time in almost a domestic economic growth. and health and personal-care output, shrank in the opening tern of the past two years: Mac- 2015—and weakening pros- decade but has held off on fur- “We need to let the data stores. Also offering hope for quarter of 2014 and barely roeconomic Advisers is tracking pects for global growth are ther moves amid global uncer- play out and see if the weak- the outlook: Sales at furniture grew at the outset of 2015, a growth rate of 0.9%, Nomura leaving Fed officials on a cau- tainty and financial market ness that we saw in fourth- and home-furnishing stores only to resume the same staid expects 0.7%, J.P. Morgan Chase tious path as they weigh the volatility. So far, central bank quarter GDP and first-quarter fell in January and February trajectory that has been the 0.2% and Wells Fargo 0.1%. next move for interest rates. officials have been more wor- GDP are an aberration or a but expanded 0.3% in March, hallmark of the recovery. That apparent slowdown— The central bank raised its ried about the drag from ex- trend,” Philadelphia Fed Presi- possibly reflecting an improv- GDP forecasts for the first following a muted 1.4% ad- benchmark rate in December ternal forces than underlying dent Patrick Harker said Tues- ing consumer outlook.

tion process should wait until af- on Monday and was appearing Ms. Buchanan said last that the California lab ran about U.S. ter the elections—a position that in adult court for the first time, HOLMES month that Theranos “made 890,000 tests a year. has drawn criticism back home. received a sentence of 180 days mistakes in the past in the New- Officials found that Theranos The White House has calcu- for each of the four deaths in ark” lab but has “dedicated ev- failed to adequately correct 43 Watch lated that if GOP senators sit the June 2013 crash, to be ContinuedfromPageOne ery resource to remedy those of 45 deficiencies identified by down with Judge Garland, they served consecutively. had 10 days to give CMS evi- failures” since becoming aware inspectors last year. The failures would agree to hold a confirma- In 2013, Mr. Couch was sen- dence of why the sanctions of the problems. included not providing evidence tion hearing and then later con- tenced in juvenile court to 10 shouldn’t be imposed. The com- She also said that most of the that Theranos sent corrected re- firm him. But so far, the meet- years of probation after he was pany has responded, and CMS is deficiencies related to how ports to patients who got flawed SUPREME COURT ings aren’t changing any minds. charged in the crash that left reviewing the response, accord- Theranos used various testing test results. —Siobhan Hughes four dead. The defense argued ing to a person familiar with the machines, including its Edison One of those tests, a blood- Republicans Hold the teen had been coddled into matter. devices, not ”the fundamental coagulation test known as pro- Firm on Nomination TEXAS a sense of irresponsibility by his If the company doesn’t re- integrity of the technologies thrombin time, measures how The White House campaign wealthy parents, a condition a spond to the satisfaction of the themselves.” long it takes blood to clot and is to persuade Senate Republicans ‘Affluenza’ Teen psychologist called “affluenza.” regulators, CMS said in the let- The company’s most urgent often used by doctors to deter- to vote on Supreme Court nomi- Ordered to Jail Earlier in 2013, Mr. Couch had ter that it will proceed to impose challenge is to persuade govern- mine which dosage of the blood nee Merrick Garland this year A teenager who once suc- lost control of his family’s pickup the sanctions. ment officials not to impose the thinner warfarin to give pa- isn’t changing any minds. cessfully used an “affluenza” de- truck after he and his friends If the sanctions are imposed, crippling penalties detailed in tients. Sen. Kelly Ayotte (R., N.H.), a fense after a fatal drunken-driv- played beer pong and drank some would take effect within the 45-page letter. The agency Wrong prothrombin time re- first-term senator who is up for ing crash was ordered by a beer. The crash fatally injured a eight days. Others would take completed an inspection of the sults could cause doctors to pre- re-election this year, said after judge to serve nearly two years stranded motorist, a youth min- longer, including revoking the California lab in November and scribe too little or too much meeting with the Judge Garland in jail for violating his probation. ister and a mother and daughter. California lab’s license, which found five major categories of warfarin. Too much of the drug, Wednesday that the confirma- Ethan Couch, who turned 19 —Associated Press could occur in 60 days. infractions that violate the fed- also known by its brand name Theranos could appeal to an administrative law judge and then a departmental appeals board, which could delay the ef- fective date of some of the sanc- Try the Amazon Rating tions. If Theranos were to ap- peal, the lab would keep its license pending the outcome of the appeals process. The pro- highest-rated posed ban on Ms. Holmes and Mr. Balwani would take effect at the same time as the lab’s license revocation and would be subject office headset to the same appeals process. The appeals process could take months, and such appeals on Amazon have rarely succeeded in the past. A list of appeals decisions NIKKI RITCHER FOR THE WALL STREET JOURNAL on the agency’s website shows Elizabeth Holmes at a WSJ tech conference that the agency didn’t lose a sin- FREE for gle such case from 2001 to the in Laguna Beach, Calif., in October. end of 2010. In response to questions from 60 days the Journal about the letter, eral law governing clinical labs. Coumadin, can cause fatal bleed- Theranos spokeswoman Brooke In February, Theranos sub- ing, while too little can leave pa- With over 360 reviews and Buchanan said the government mitted a correction plan to ad- tients vulnerable to clots and hasn’t yet imposed sanctions on dress the problems, but federal strokes, according to medical ex- 4.8 stars, the Sennheiser the company’s lab in Newark, officials concluded it was insuf- perts. OfficeRunner® is the #1 Calif. ficient, according to the March Prothrombin time is a hema- wireless office headset on “Due to the comprehensive 18 letter. CMS declined to com- tology test. In January, CMS told nature of the corrective mea- ment. Theranos that its hematology- Amazon and Headsets.com sures we’ve taken over the past The letter detailed six pro- testing practices placed patients several months, which has been posed sanctions, including re- in “immediate jeopardy.” In the The OfficeRunner beats Plantronics headsets in all three ways: affirmed by several experts, we voking the California lab’s fed- March 18 letter, the agency said are hopeful that CMS won’t im- eral license and barring it from the company’s plan failed to ad- pose sanctions,” she added. “But the Medicare program. License equately correct those deficient if they do, we will work with revocation would result in Ms. practices. CMS to address all of their con- Holmes and Mr. Balwani being As a result, the agency pro- cerns.” barred from owning or operat- posed to bar Theranos’s lab in Last week, Theranos an- ing any lab for at least two California from doing any hema- nounced the recruitment of “na- years, according to the copy re- tology testing, regardless of tionally respected laboratory viewed by the Journal. whether it appeals the sanc- and medical experts” to its sci- CMS also proposed to fine tions, according to the letter. Sennheiser Plantronics entific and medical advisory Theranos $10,000 a day and said The company has said it OfficeRunner CS500 Series board. The company said the it wants the company to submit doesn’t believe any patients  eight-member panel would the names and addresses of all were affected. 12-hour talk time 7-hourhouur talkta time “work alongside Theranos’ lead- doctors and patients who used The Arizona lab wasn’t part  400-foot range 350-foot50 foot rangeran ership and internal teams in var- the lab’s services since January of the inspection and continues 3-year warranty  1-year1 y warrantywar nty ious areas, including advising 2014. to run a variety of tests on sam- Theranos regarding the full inte- “This list may be used to ad- ples drawn from patients at 40 gration of its technology into vise the laboratory’s clients of Theranos wellness centers at “Our sales folks really like the superior clarity and routine clinical practice, and the nature of its non-compliance Walgreens Boots Alliance Inc. range they get with the OfficeRunner.” publication and presentation in and the nature and effective drugstores. Lena Weber – Boise Cascade, Woodinville, WA scientific journals and at scien- date of any sanctions imposed In addition, CMS said it tific meetings.” against the laboratory,” federal didn’t find some of the exhibits “This product is far superior to the Plantronics... Theranos was valued at $9 officials wrote in the letter. and tables Theranos referred to The comfort, quality and design are all superior.” billion in a funding round in The proposed penalties are in its plan, according to the let- 2014 and the majority stake of among the most severe in CMS’s ter. And Theranos widened the Tony Charuvastra – Anthony Charuvastra, MD, New York, NY Ms. Holmes at more than half power, said Barbara Cammarata, variation ranges it deemed ac- that. During the past six months, a lawyer at Sidley Austin LLP ceptable for certain blood tests If you spend more than 30 minutes on the phone during the day, the though, Theranos has faced who advises clinical labs on reg- without giving the agency any OfficeRunner will change the way you work – guaranteed! questions about the proprietary ulatory issues. “They’re in a lot justification for the change, the blood-testing devices it in- of trouble,” she said. letter said. vented, code-named Edison, the Last year, the agency revoked CMS officials usually release accuracy of patient test results the licenses of about two dozen sanctions letters to the public Try yours FREE for 60 days! and its lab practices. clinical labs out of the thou- soon after sending them to lab The Journal reported in Octo- sands it oversees across the U.S. owners. With Theranos, the Call 1-800-HEADSETS (1-800-432-3738) ber that former employees had Greg Ingle, chief executive of agency has held off because the doubts about the accuracy and Clinical Lab Consulting LLC, a company requested redactions or visit www.headsets.com/60days reliability of the Edison devices. firm that audits labs, said it “is that it said are necessary to pro- CMS inspectors found that some incredibly rare to see” the gov- tect its trade secrets, according

© 2016 Headsets.com, Inc. “OfficeRunner” is a registered trademark of Headsets.com. All other trademarkstests are property of their respective owners run on those machines and ernment seek to take away the to people familiar with the mat- Offer Code: EH-78971 traditional devices routinely license of “a highly capitalized, ter. The agency hasn’t decided missed Theranos’s own accuracy large operation” such as Thera- whether to grant the redaction requirements. nos. Company records showed requests, the people said. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. **** Thursday, April 14, 2016 | A7 WORLD NEWS In Brazil, Deep Divisions Are on Display

Colorful street theater has done anything that would justify impeachment. reflects serious rifts in “I have never seen such in- impeachment debate; tolerance,” said Mr. Kfouri, who was arrested in 1971 for oppos- yellow ducks, red shirts ing the military dictatorship that ruled Brazil for two de- BY REED JOHNSON cades before democracy was re- AND LUCIANA MAGALHAES stored in 1985. “We are no lon- ger able to discuss politics.” SÃO PAULO—The national Some believe the silver lin- mood fluctuates between a fes- ing in Brazil’s outlook is that tive carnival parade and a bitter smartphones and social-net- family feud as Brazilians tensely working apps have made it eas- await Sunday’s congressional ier for ordinary citizens to have vote on whether to impeach a say in the rancorous debate. President Dilma Rousseff. Filmmaker Anna Muylaert, Here in Brazil’s largest city, who opposes impeachment, pro-impeachment activists have said Brazil and other countries pitched tents and draped anti- are experiencing “a very demo- government banners on the cratic, historic period” that main commercial drag. Among bodes well for the future. their props is a gigantic inflat- The country’s greater prob- able yellow duck, alluding to a lem is the corrupt legacy of the Portuguese expression past, said Ms. Muylaert whose that roughly translates as, “We 2015 feature, “Que Horas Ela won’t pay the tab for what isn’t Volta?” (“The Second our fault.” Mother?”) deals with subtle In Rio de Janeiro on Monday, class tensions between an af- intellectuals and artists includ- fluent São Paulo family and its ing songsmith Chico Buarque devoted housekeeper. and Leonardo Boff, a social-ac- “I think that comes from the tivist priest, staged a pro-gov- way we were colonized 500

ernment rally in the bohemian EVARISTO SA/AGENCE FRANCE-PRESSE/GETTYyears IMAGES ago, the way the Portu- Lapa neighborhood, and signed Members of the Come to the Street movement set up posters near Congress on Sunday depicting pro- and anti-impeachment lawmakers. guese came here to get the a manifesto decrying the im- gold, to use the Indians, and not peachment push as a threat to ken out among red-shirted sup- mactic vote, after a special con- day’s televised commission congenial society, as ugly inci- thinking of building a nation,” democracy. porters of Ms. Rousseff’s leftist gressional committee voted on hearing showed adversaries dents of intimidation have mul- she said. “That is a curse that is But the colorful street the- Workers’ Party and opponents Monday to support a recom- shouting each other down with tiplied in recent weeks. still going on.” ater underlines social fissures decked out in the yellow-and- mendation for impeachment. If cries of “Dilma, out!” and In the southern city of Porto For now, though, many Bra- that have widened over the past green jerseys of the national two-thirds of the full Chamber “There will not be a coup!” Gov- Alegre, a pediatrician refused to zilians are looking forward decade amid a sagging economy soccer team. of Deputies votes on Sunday to ernment foes brandished blow- treat the son of a local official to Sunday’s vote and not both- and rising public anger at cor- “All this ends up being bad support impeachment, Ms. up dolls of Ms. Rousseff’s men- aligned with the Workers’ Party. ering much about what came ruption among Brazil’s eco- for democracy itself,” said Pe- Rousseff’s case will be sent to tor and presidential In São Paulo, a promi- before or what comes next. “If nomic and political elites. dro Fassoni Arruda, a political the Senate for trial. predecessor, Luiz Inácio Lula da nent sports columnist, Juca the impeachment is approved, The showdown between Ms. scientist and professor at the The charges against Ms. Silva, sporting prison pin- Kfouri, was verbally abused at there will be a huge party,” en- Rousseff and her congressional Pontifical Catholic University of Rousseff stem from accusations stripes. his home after he took a public thused Cezar Leite, who heads a adversaries has opened rifts São Paulo, who like many com- that she used accounting tricks Although Brazil’s social divi- stand against impeachment. regional chapter of Vem Pra Rua among Facebook friends and mentators has compared the at- to hide a growing federal bud- sions aren’t as acute as those in Mr. Kfouri, who writes for (Come to the Street), an anti- family members. Punches have mosphere to a rowdy soccer get deficit, allegations she de- neighboring Venezuela, the roil- the Folha de S.Paulo newspaper, Rousseff group, in the city of been thrown by angry lawmak- match. nies. ing discontent and disillusion- said in an interview that he is Salvador in the northeast state ers on national television. Brazil’s political temperature Politicians have set the nasty ment have upset the country’s not a Workers’ Party supporter, of Bahia. “Salvador will wake up Bloodier altercations have bro- is rising ahead of Sunday’s cli- tone for the nation. Mon- self-image as a tolerant and but doesn’t think Ms. Rousseff in a carnival,” Mr. Leite said. Rousseff Economy Tanks as Political Upheaval Looms BY PAUL KIERNAN overhauls through Congress. ernment to lay off civil Faces More Brazil’s GDP shrank 3.8% last No Quick Fix servants and allows workers to RIO DE JANEIRO—For the year—the biggest contraction While news of President Rousseff’s possible ouster has helped start collecting social security past two months, Brazilian fi- in a quarter-century, and a lift Brazil’s financial markets... at an average age of 54. Defections nancial markets have staged stark turnaround from the 7.5% Such problems, along with wild rallies over any sign that growth notched in 2010, the Bovespa stock index Real per dollar other obstacles to growth left-leaning President Dilma year Ms. Rousseff was elected. 55000 3.50 like pervasive red tape and Of Allies Rousseff might be ousted from The economy is now projected poor infrastructure, were BY ROGERIO JELMAYER office, even as the nation’s to contract 3.8% in 2016. 49000 3.75 masked from 2003 to 2011 by AND PAULO TREVISANI economy spiraled further into But the bleeding will likely rising prices for Brazil’s com- the depths of its worst crisis in continue regardless of who modity exports. When com- SÃO PAULO—Political allies generations. Brazil’s president is because 43000 4.00 modity prices began to falter are deserting President Dilma Now, with a crucial im- the government has virtually during Ms. Rousseff’s first Rousseff, reducing her chances peachment vote looming on exhausted its firepower to term, she intervened in the of surviving a crucial impeach- Sunday, investors may soon fight the crisis. Years of eco- 37000 4.25 Scale inverted economy with populist poli- ment vote in Congress set for get their wish for new leader- nomic stagnation, combined J FM A JFMA cies that temporarily sus- Sunday. ship. If two-thirds of lawmak- with constitutionally mandated tained consumer spending The Social Democratic Party, ers in Brazil’s lower house vote spending on things like health ...growing deficits and increasingly gloomy growth forecasts don’t but left Brazil with a gaping or PSD, which is a member of to try Ms. Rousseff on charges care, education and pensions, bode well for a speedy turnaround. budget deficit. the governing coalition, on of doctoring the government’s have left Brazil’s public sector Deficit as a share of GDP* Forecast change in 2016 GDP† Ms. Rousseff attempted to Wednesday recommended its fiscal numbers, she will have with a deficit of nearly 11% of 10.0% –3.00% Date each right the fiscal ship after her members vote in favor of im- to step aside, at least tempo- GDP. forecast 2014 re-election by naming a peachment, reversing an ear- rarily. “We talk about entitlement 7.5 –3.25 was made respected banker, Joaquim lier decision to support the But while markets are spending in the U.S., but I Levy, as finance minister. News president, a spokeswoman said. cheering, the prospects for a mean, that is what Brazil 5.0 –3.50 of the appointment boosted Of the party’s 36 deputies, 26 growth rebound remain dim, does—90% of the budget is en- Brazil’s stocks and currency. are in favor of impeachment, even if Ms. Rousseff is suc- titlement spending. There is no 2.5 –3.75 But his most important auster- five are against and five are ceeded by a more business- discretionary spending,” said ity measures fell flat, and he undecided, she added. friendly head of state. Edwin Gutierrez, who manages 0.0 –4.00 resigned in December. Another party, the Brazilian “The economy suffers from $11 billion in emerging-market ’05 ’07 ’09 ’11 ’13 ’15 JFMA Mr. Levy’s struggles may Labor Party, or PTB, also rec- a variety of original sins,” said debt at Aberdeen Asset Man- bode poorly for Mr. Temer’s *Nominal; †Based on weekly surveys of private economists Sources: FactSet (Bovespa); ommended on Wednesday that João Pedro Ribeiro, a Brazilian agement. Tullett Prebon (real); Brazil’s central bank (deficit; GDP) hopes of swiftly delivering his its lawmakers vote in favor of economist at Nomura in New The fixes Brazil needs THE WALL STREET JOURNAL. party’s promise to overhaul impeachment. York. He says Brazil’s “poten- would require politically un- the pension system, cut waste- The party, which isn’t in the tial growth”—how fast gross popular decisions. Ms. Rouss- cently ordered Brazil’s Con- measures he tries to impose. ful government spending and governing coalition, has 19 domestic product is capable of eff’s likeliest successor, Vice gress to charge Mr. Temer with “As a result, the binary stimulate private investment. deputies, with 15 in favor of expanding in the long term—is President Michel Temer, has the same offenses it lodged manner by which markets are “We thought when Joaquim impeachment and four against, now“very,verylow”incom- signaled a pro-market agenda against Ms. Rousseff. Several treating this weekend’s vote is Levy came on board…that Brazil a party spokesman said. parison with other developing but will likely have “a very high-ranking PMDB members probably somewhat mis- was moving in the right direc- The move will add to pres- countries. narrow honeymoon” to imple- have been implicated in a placed,” Mr. Garman said in a tion,” said Michael Henderson, sure on undecided lawmakers The president’s critics say ment it, said Christopher Gar- wide-reaching corruption scan- research note on Tuesday. an analyst at Maplecroft. “But to vote against the president, she has mismanaged her na- man, head of country analysis dal. Many challenges ahead are there is a lot of inertia there; a said Carlos Melo, a political- tion’s once-flourishing econ- at risk consultancy Eurasia A newly energized leftist enshrined in Brazil’s 1988 con- lot of these structural problems science professor at the In- omy and lacks the political Group. opposition, meanwhile, is stitution, which makes it prac- are hard to weed out. There are sper business school in São skills to push badly needed A Supreme Court judge re- likely to oppose any austerity tically impossible for the gov- a lot of vested interests.” Paulo. “It’s the typical rush for the exit that we see with political parties that always try to po- sition themselves on the Ex-Finance Minister Faces Uphill Battle in Peru Vote stronger side,” he said. Ms. Rousseff’s government BY RYAN DUBE Mr. Kuczynski has won up the U.S. citizenship he had has been scrambling to cobble strong support among Peru’s obtained during the many together enough support to LIMA, Peru—Pedro Pablo business community and years he spent in the U.S. stave off an impeachment vote Kuczynski, a 77-year-old econ- emerging middle class. But he But Mr. Kuczynski seems in Brazil’s Chamber of Depu- omist, is touted by some as the has struggled to connect to visibly uncomfortable playing ties. likely next president of Peru, poor voters in the countryside. the populist. He prefers to talk She needs 172 votes in the after coming in second in a “He needs all of the anti-Fu- about providing incentives to 513-member body, including first-round vote last weekend. jimorista voters to line up be- small companies to get them abstentions or no-shows, to But he has to overcome two hind him,” said Steven Levitsky, to put informal workers on the kill the proceeding and avoid a obstacles: getting about half a political scientist and Peru payroll. He would also offer trial in the Senate. the votes of the front-runner expert at Harvard University. tax incentives for larger inves- The president on Wednes- and being seen as too Ameri- Mr. Kuczynski acknowl- tors, like mining companies, to day said her government has can. edges that he doesn’t have the reinvest profits. enough support in the lower “It’s going to be a tough name recognition of his rival, “Because we are commodity house to block impeachment slog,” said Pedro Pablo Kuc- nor the grass-roots organiza- dependent, people say that and proposed a national unity zynski, known by rivals as tion that makes her a favorite China slows down and we hit a pact after she wins. The pact “the gringo,” in an interview among rural voters. “What is wall,” he said. “But it doesn’t

would unite “all political with The Wall Street Journal SEBASTIAN CASTANEDA/EFE/ZUMA PRESS in my favor is that my nega- have to be that way. There are forces, without losers or win- on Wednesday. Presidential candidate Pedro Pablo Kuczynski in Lima on Sunday. tives are very low, whereas a lot of things we can do.” ners,” she said. To win, he said he will have she’s got a hard core of people Mr. Kuczynski said he The defections “have made to count on the unpopularity speaks fluent English. “But mori, the 40-year-old daughter that will never vote for her.” wants to better use state re- an impeachment trial in the of his opponent, Keiko Fuji- there is a hard-core anti-Fuji- of Alberto Fujimori. He is re- Mr. Kuczynski, who is mar- sources to improve education Senate almost inevitable,” mori, and her famous father, a mori vote that is very impor- viled by many Peruvians for his ried to an American, has tried and provide services. “It’s said Rafael Cortez, a political former president. tant.” authoritarian 1990s rule, but to blunt perceptions that he is time to have a country that is analyst at São Paulo-based “We will need some help,” Mr. Kuczynski, a former fi- beloved by others for having more foreign than Peruvian, as modernized, that is socially consultant Tendencias Con- said the former Credit Suisse nance minister, qualified for the defeated a fanatical rebel group well as beholden to the elite. more egalitarian, more devel- sultoria. First Boston executive, who June 5 runoff against Ms. Fuji- and tamed hyperinflation. During the campaign, he gave oped than it is.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10 | Thursday, April 14, 2016 **** THE WALL STREET JOURNAL. WORLD NEWS Trapped Migrants Clash With Riot Police

Near-daily outbreaks of violence in Greece point to brewing humanitarian crisis

BY STELIOS BOURAS

ATHENS—Migrants and Macedonian police clashed for the second time in recent days at the country’s Greek border, highlighting the growing frus- tration of migrants trapped in squalid conditions in Greece by border closures. At the village of Idomeni, on Greece’s border with north- ern neighbor Macedonia, a group of up to 100 migrants threw rocks and tried to rip down the border fence on Wednesday, according to Greek police. Macedonian riot police responded by firing tear gas and stun grenades to dis- perse the group. Greek police stepped in to prevent an escalation and a repeat of violent clashes on Sunday, when scores of people were injured, mostly by tear gas or plastic bullets fired by Macedonian police. The outbreaks of fighting at Idomeni are a sign of how Greece is turning into a pres- sure cooker for some 54,000 migrants stranded in the coun- try, often with little food and living in wretched conditions.

The migrants, including STOYAN NENOV/REUTERS Syrian refugees as well as A man threw a tear-gas shell back at Macedonian police as they tried to stop migrants from tearing down a fence at the country’s border with Greece on Wednesday. Iraqis, Afghans and others, mostly want to seek asylum in able to travel deeper into Eu- Efforts by Greek authorities resources. along with all its risks. Out- His biggest concern, how- Germany and other parts of rope and many afraid to re- to shift them to nearby camps One of the most over- breaks of violence among mi- ever, is how his family can get Northern Europe. But the trail turn to troubled regions in the have proved largely fruitless. crowded accommodation cen- grants over food regularly take a hot shower. It can’t afford to into the continent has been Middle East or South Asia. Many fear that if they leave ters is at the disused Athens place. Reports of sexual ha- pay the €30 ($34) that local blocked by the closure of bor- Outbreaks of violence in- the area, they may miss their airport at Hellenikon, where rassment against women are hotels are demanding for a ders in the Balkans. volving refugees and other mi- chance to get across the bor- more than 4,500 migrants frequent. few hours in a room when A deal between the Euro- grants have become an almost der. Others complain about the have been put up, exceeding Mr. Halae has been sleeping they can wash and rest, he pean Union and Turkey to daily occurrence in Greece. overcrowded conditions at the the camp’s planned capacity of in a small tent with his wife, said. The family has caught send back migrants who cross At Idomeni, where nearly state-run shelters. 4,000. On Tuesday, refugees their 6-year-old daughter and the flu in recent days, he said. the Aegean Sea to Greece has 11,000 migrants are gathered, Greek government officials smashed the windows of the his mother the past 20 days. A Like most of the trapped coincided with a sharp reduc- some have blocked train tracks acknowledge there are prob- main building to cool it down driving instructor in his home- migrants, Mr. Halae is at a tion of new arrivals in Greece between Greece and Macedo- lems at the more than 30 offi- amid a bout of warm weather. town Aleppo, Mr. Halae com- loss. “All I can do is sit here in recent weeks. But tens of nia, while others have on occa- cial camps around the country Akram Halae from Syria plained of rats and “other ani- and wait for something to thousands already in Greece sion blocked traffic on nearby but say they are doing their said he preferred a makeshift mals” in the government happen. I don’t know what— face an uncertain future, un- roads. best, given limited time and camp at the port of Piraeus, shelter where he slept before. just something,” he said. Russians Buzz U.S. Navy Ship in Baltic Sea Extremists BY JULIAN E. BARNES was operating in international AND GORDON LUBOLD waters. Claim After the March 2014 Rus- Russian warplanes and a sian move to annex Crimea, military helicopter repeatedly there were a series of high- Brothers buzzed a U.S. Navy destroyer profile intercepts of aircraft in the Baltic Sea two days this and passes of warships as ten- week, flying to within 75 feet sions rose between Moscow Led Strikes of the warship, according to and the North Atlantic Treaty BY VALENTINA POP U.S. officials, a sign of poten- Organization. Recent months, tially rising tensions despite however, have been a period of BRUSSELS—Islamic State Moscow’s recent agreement to relative calm. identified what it said were hold new talks with the West- The U.S. also has witnessed the main organizers behind ern alliance. an increase in Russian subma- the attacks in Paris and Brus- U.S. officials said the passes rine activity in the region over sels and put out a hit list for by unarmed Su-24 warplanes the past 18 months—the most more than a dozen prominent and at least one Ka-27 Russian U.S. officials have seen since moderate Muslims in the military helicopter were unsafe, the end of the Cold War, ac- West. potentially provocative and cording to one official. As a re- Khalid and Ibrahim el- could have caused an accident. sult, the U.S. has increased its Bakraoui, the two brothers Images released by the U.S. surveillance of those subs. who blew themselves up at a showed the Russian aircraft The rise in sub-hunting op- Brussels metro stop and at streaking within yards of the erations could explain why the the city’s main airport, re- USS Donald Cook, then circling Russian military responded so spectively, were responsible the bow of the ship in what a aggressively to the Cook. for “all preparations for the U.S. official said was an unmis- “As Russian sub activity has raids in Paris and Brussels,”

takable attempt to harass the U.S. NAVY/ASSOCIATED PRESS increased in the region, the according to Islamic State’s vessel and its crew. A Russian SU-24 jet shown making a pass near the USS Donald Cook on Tuesday in the Baltic Sea. U.S. and its allies have in- English-speaking magazine The Cook was also followed creased their monitoring and Dabiq. by a Russian frigate and auxil- were hosting someone who the Russian pilots were unsuc- hold the helicopter on its deck. tracking of them,” the official A Belgian prosecutor de- iary ship. wasn’t in the military. cessful. The Cook, a ballistic missile- said. “We want the Russians to clined to comment on the A Russian military helicop- Video of one incident in- One of the passes occurred defense destroyer, was patrol- know that we know where they claims, but a French police of- ter also came within about 100 cluded audio of the U.S. ship’s as a Polish military helicopter ling and conducing helicopter are.” ficial cast doubt on them. feet of the Cook. One image of crew repeatedly describing the was about to take off from the exercises with Poland and The official said the U.S. de- “Let’s not forget this is a pro- the helicopter showed its side Russian aircraft over a radio, deck of the Cook, according to a other U.S. partners in the stroyer wasn’t in the Baltic to paganda tool for Islamic door open and an individual in likely to a higher authority. Ac- U.S. official briefed on the inci- southwestern Baltic Sea, after a look for Russian subs. State,” he said. jeans sitting in a rear seat, an cording to one official, at- dent. The pass-by disrupted the port visit in Poland on Sunday. —Thomas Grove in Moscow The claims contrast with indication that the Russians tempts to communicate with operation, forcing the Cook to A U.S. official said the Cook contributed to this article investigators’ account that Abdelhamid Abaaoud, who was killed in a raid in a Paris suburb days after the Novem- ber attacks in the French cap- Syria Regime Holds Election as Talks GetStarted ital, was the ringleader be- hind the Paris terror spree. BY RAJA ABDULRAHIM ter a meeting at the Central news conference. The magazine listed four of AND DANA BALLOUT Intelligence Agency, said the On Monday, the U.S. State the Brussels assailants, all cease-fire was “tenuous and Department called the elec- dead, and glorified their role BEIRUT—Talks aimed at end- under strain,” and that the tions “at best premature and in the attacks in both cities. It ing Syria’s five-year war re- talks in Geneva must encom- not representative of the Syr- said nothing of the surviving sumed in Geneva, as the govern- pass a political transition away ian people.” Paris on Wednes- suspects arrested or still at ment in Damascus held from the rule of Mr. Assad. day denounced them as “sham large, raising questions over parliamentary elections that the Mr. Obama travels to Saudi elections,” and Germany said it whether the account was de- opposition and Western govern- Arabia next week for meetings wouldn’t accept the results. signed to protect others. ments said were illegitimate and with Gulf leaders. The elections and the talks The magazine also listed undermined the negotiations. The U.N. envoy said he had are occurring amid a partial around a dozen prominent There remains no plan for di- just returned from visits to Jor- cease-fire that is under severe Muslims it called “overt cru- rect talks, the United Nations dan and Damascus as well as strain after six weeks. saders” as targets, naming po- envoy for Syria, Staffan de Mis- Tehran and Moscow—key back- Rebels launched an offen- litical and religious figures in tura, said after meeting with op- ers of the Assad regime. “All of sive in the area of Aleppo more the U.S., U.K. and Canada. position delegates in Geneva. them indicated support and in- than a week ago following re- Pieter Van Ostaeyen, a Bel-

President Bashar al-Assad’s re- terest in the progress of a politi- SANA/AGENCE FRANCE-PRESSE/GETTY IMAGES peated cease-fire violations by gian expert in Islamic affairs, gime has said its delegation cal transition [and] all sup- President Assad watching his wife cast her vote on Wednesday. government forces, antigovern- said the Islamic State’s claim would arrive there Friday for ported the advancement of ment activists said. was very likely exaggerated. the indirect talks, which Mr. de political solutions.” Mr. Assad said there was heads the opposition delega- In response, the regime an- “I doubt the Bakraoui broth- Mistura is mediating. Syrians living in areas under “an unprecedented number” of tion to the peace talks, de- nounced an operation to retake ers had the operational Secretary of State John government control were voters Wednesday compared nounced the elections as “a Aleppo, which has been divided knowledge,” he said. “They Kerry spoke by phone Wednes- choosing candidates to fill the with “past decades.” farce.” The peace talks are since 2012. could have helped easily in day to Mr. de Mistura to ex- 250-seat parliament. Voting was Syrian officials have said about establishing a transi- “In spite of several serious providing the weapons, as press concern about fighting in extended until midnight, after the elections are required ev- tional government body that instances, the cessation of hos- they were hardened criminals, Syria and about regime efforts which counting of ballots began, ery four years by the constitu- can then draft a constitution tilities is still holding,” Mr. de but I don’t see them capable to hinder humanitarian access, state media reported. Mr. Assad tion, which remains in effect and organize elections in Mistura said. of organizing all of this.” the State Department said. and his wife, Asma, were among until a new one is drafted. which all Syrians can partici- Neither side has declared an —Inti Landauro in Paris President Barack Obama, af- those shown voting. But Asaad al Zoubi, who pate, he said in a televised end to the truce. contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. **** NY Thursday, April 14, 2016 | A11 WORLD NEWS

World Watch Carp Ravage Australia’s Food Bowl Government considers virus to eradicate fish, but some worry of possible impact on other species BY ROB TAYLOR

Unwelcome Guest QUEENSLAND GERMANY DENILIQUIN, Australia— European carp now Government Sticks Like the Mississippi River in account for 80% of all fish the U.S., the tributaries near in the Murray-Darling Brisbane With Tight Budgeting this farming hub helped river system. Germany reaffirmed its com- open up Australia’s interior mitment to fiscal discipline, more than a century ago. pledging to balance its budget Now, European carp are dev- and crank down the national debt astating the lifeblood of the through at least 2020. nation’s food bowl here, NEW SOUTH WALES The government forecast a prompting the government SOUTH balanced budget for this year, af- to consider smiting them AUSTRALIA rling River ter a 0.7% of gross-domestic- with a lethal virus. Da Murray-Darling Basin product surplus in 2015. It said The invasive species now the debt level would likely drop represent 80% of all fish in Sydney ra y M u r Ri to 68.25% of GDP this year, from southern Australia’s Murray- ve Adelaide r 71.2% in 2015. Darling river system, up Deniliquin Germany’s focus on reining in from 58% four years ago, in Canberra spending has left it increasingly a region that produces a isolated: The country is expected third of the country’s total VICTORIA to come under pressure to help agricultural output. Melbourne stimulate Europe’s weakening Scientists blame the fish 100 miles economy at International Mone- for contributing to algal 100 km tary Fund meetings this week. blooms that this month hit a THE WALL STREET JOURNAL. —Andrea Thomas vast section of the Murray ROB TAYLOR/THE WALL STREET JOURNAL Source: Australian Department of the Environment River—Australia’s longest Steve Hounsell unloading carp at a fertilizer factory in Deniliquin. CHINA waterway—degrading water quality and harming native consideration in Australia researching the virus at a year. Foreign investors have call them the “cockroaches Officials Targeted species valuable to the in- nearly killed off the carp- quarantine lab for the past rushed to buy farmland to of the waterways.” Over Vaccines land fishing industry. The farming industry in Israel seven years, have shown the get ahead of that anticipated Matt Barwick, a carp ex- China will punish 357 officials carp erode river banks, lead- when it emerged there in koi herpesvirus CyHV3 could demand boom. pert with Australia’s Re- implicated in the sale of improp- ing to trees toppling into riv- 1998, spreading quickly kill four in every five carp The outcome also is being search Centre for Invasive erly handled vaccines, a scandal ers, slowing river flows and through trade to ravage that become infected. closely watched in the U.S. Animals, said the fish cause that further eroded trust in the fouling valuable water that farmed stocks in Europe. “It has been shown to and Canada. Carp now an estimated 500 million country’s public-health system. farms rely on for irrigation. People want to curb carp, pose no danger to 13 native threaten the Great Lakes and Australian dollars (US$384 Officials found to have been But their proposal to in- but “You say the word virus species such as Murray cod, other waterways, including million) in annual damage. involved will be fired or de- troduce the virus is worrying and people worry,” said Neil various species of perch, eel the Mississippi and Illinois Till now, the front line in moted, and criminal charges may many Australians in a coun- Gorey, the mayor of Wakool and catfish, as well as crusta- rivers, after being intro- combating carp numbers has be filed against some, Xinhua try where distrust of biologi- Council, which covers sev- ceans,” said Ken McColl, who duced into the Midwest as a been led by fishermen such as said, citing an announcement cal methods to control pests eral nearby riverside towns. is leading the government’s game fish in the early 1880s. Steve Hounsell. Three times a from China’s State Council. As of runs deep. Viruses intro- “You take them out of the research into the virus. European carp were im- week, Mr. Hounsell hauls his Monday, authorities have filed duced to kill rabbits in Aus- food chain and that will im- Officials say they plan to ported decades ago to start a catch to Charlie Carp, a com- 192 criminal cases, Xinhua said. tralia have had limited suc- pact other species. We need announce a decision on the new aquaculture industry. pany founded in 1995 to turn The State Food and Drug Ad- cess. Noxious South to get the science right.” virus in the coming weeks. But since escaping pens their European carp into liquid and ministration announced in March American cane toads—intro- Still, lawmakers, scien- For Australia, much is numbers have exploded; fe- pellet fertilizers. that it identified nine drug duced here a century ago to tists and some conservation- riding on the decision. The male carp can produce a mil- “If we can do anything to wholesalers involved in the al- kill sugar-cane beetles—have ists have banded together in country wants to boost its lion eggs each. Carp is get rid of them and control leged reselling of vaccines that spread across Australia’s a rare alliance in support of agricultural exports to Asia, prized in Europe as a food, them, it will be a better en- had been stored and transported northern tropics and devas- introducing the carp virus. helped by several free-trade but Australia’s muddy rivers vironment for us all to live without proper refrigeration. tated many native predators. Tests by Australia’s main sci- pacts signed with countries taint its flesh, rendering it in,” said Charlie Carp direc- —Laurie Burkitt The same virus under ence agency, which has been such as China and Japan last almost inedible. Fishermen tor Harold Clapham. Defectors Help Drive Media Blitz Against North Korea BY ALASTAIR GALE North Korean restaurant work- eos or dramas,” said Sokeel related initiatives. ers to South Korea and the Park, head of research and One grant funds more than SEOUL—On a recent day, revelation by Seoul this week strategy at Liberty in North half of the operating budget of North Korean defectors filled a that a colonel in the North’s Korea, an organization that Radio Free Chosun, a Seoul- classroom here to learn skills primary spy agency defected works with defectors. based radio station that that could accelerate a chal- late last year are adding to the The state still maintains a broadcasts into North Korea. lenge for the Kim Jong Un re- pressure. highly effective system of do- The North Korea Strategy gime: the erosion of its infor- Highlighting its concerns, mestic surveillance and those Center, which operates the mation blockade. North Korea said in early April caught using or distributing journalism academy in Seoul, More than 260 people have it was blocking “antirepublic” foreign media face severe pun- is one group working to keep studied at a defector-led jour- websites such as South Korean ishment. But the spread of for- prying open North Korea’s in- nalist academy since 2011, news portals, as well as Face- eign information appears to be formation barrier. The non- some going on to work for ra- book and other social-media changing Pyongyang’s calcu- profit is headed by Kang dio stations that broadcast sites. lus. The government no longer Cheol-hwan, who spent a de- into North Korea, or to write North Korea’s formerly ro- claims to its people that it is cade in a North Korean prison about the country for media in bust barrier to outside sources the more prosperous of the camp and worked as a journal-

its archrival South Korea. of news and information has two Koreas, for example. NORTH KOREA STRATEGYist CENTER at South Korea’s biggest As North Korea faces new weakened as radio program- The flow of external infor- North Korean defectors study at a journalism academy in Seoul. circulation newspaper. international sanctions in re- ming into North Korea has in- mation also weakens links be- Mr. Kang says the journalist sponse to its nuclear test and creased, cellphones smuggled tween North Koreans and their nal information into North Ko- spread of communication de- program was started with the long-range rocket launch this from China have enabled some government. Mr. Park says one rea. It funds Korean-language vices there. same goal of helping to spread year, its leadership is also international calls, and media defector told him that he real- broadcasts by Radio Free Asia The National Endowment information inside North Ko- grappling with the growing devices such as memory cards ized South Korea was a safer and Voice of America. Presi- for Democracy, a U.S. non- rea. “I hope that one day spread of potentially destabi- have become more prevalent, place to live after hearing a dent Barack Obama recently profit, made about 20 grants they’ll be able to go back and lizing information about life defectors said. foreign documentary about approved legislation that pro- to North Korea-related proj- bring the freedom of the press beyond its borders and its “These days, it’s a surprise policing in the country. vides around $50 million over ects last year worth around $2 to North Korea,” he said. government. if new defectors say they ha- The U.S. plays a significant five years for radio broadcast- million, including radio broad- —Min Sun Lee Last week’s defection of 13 ven’t seen South Korean vid- role in aiding inflows of exter- ing into North Korea and the casting and other journalism- contributed to this article.

and denting tax revenues. emergency financing, arranged COAL Peabody estimates its fu- Under Pressure by Citigroup Inc., and has ture cleanup costs and other U.S. coal production enough cash to keep running environmental obligations at mines and delivering coal to 1.2 billion tons ContinuedfromPageOne $723 million, a concern for en- customers. Citigroup didn’t re- tial debt burden.” vironmental activists. The spond to requests for com- Peabody’s move sets the miner shouldn’t be allowed to 1.0 ment. Peabody last month said stage for a potentially bitter “walk away from the billions it had delayed interest-rate fight among creditors for its of dollars in damages to land- 0.8 payments on two loans and assets, which include massive scapes, wildlife, and crucial 2015 warned it may not have suffi- 895 million open-pit complexes in Wyo- water supplies that are part of cient liquidity to sustain oper- 0.6 tons ming and Australia and under- coal’s legacy,” said Theo Spen- ations, warning of a possible ▼ ground mines in Illinois. cer of the Natural Resources 10.5% chapter 11 filing. America may never again Defense Council. 0.4 from 2014 Peabody has now lost see a coal company as big as Coal isn’t the only commod- money in nine straight quar- Peabody. Founded in 1883 by ity getting hammered by the 0.2 ters and in 2015 posted a $2 Francis Peabody with $100, a weaker global economy. Prices billion deficit. The company wagon and two mules, accord- for copper, steel, aluminum 0.0 has also been weighed down ing to the company’s corporate and other industrial goods by its ill-timed acquisition of history, Peabody grew into a have fallen steeply this decade 1950 ’60 ’70 ’80 ’90 ’10’00 Australia’s Macarthur Coal Ltd. juggernaut, producing coal for as demand has weakened Source: Energy Department for $5.1 billion in 2011. Prices customers in 25 countries and around the world, especially in THE WALL STREET JOURNAL. have been declining ever since. employing 7,600 people. China. Peabody executives insist But its decline has been Peabody’s move raises the ments. Elliott and Aurelius, they believe the company’s precipitous. In 2011, Peabody’s default rate for U.S. metals and which were founded respec- mines have a future. They cite value on the stock market mining companies in the past tively by billionaire Paul the Environmental Protection briefly touched $20 billion. It 12 months to 29% from 25%, Singer and former Elliott Man- Agency’s estimates that as is now worth $38 million. according to a report released agement portfolio manager much as 802 million tons of Many of its mines are still Wednesday by Fitch Ratings. Mark Brodsky, are poised to coal will be burned in the U.S. profitable, but not profitable Peabody expects a bank- make big profits on a decade- in 2050, roughly the same as enough to take care of the ruptcy-court fight between plus legal fight with Argentina last year. Coal use is expected debt it has run up. lenders and bondholders over over defaulted sovereign to decline to 680 million tons About half of U.S. coal is which of its mines secured bonds. this year. now being produced by bank- lenders can lay claim to, ac- Many of the creditors ex- Peabody filed for chapter 11 rupt companies, which will be cording to people familiar with pected to vie for control of protection for most of its U.S. broken up to compensate pri- the matter. Peabody’s assets bought their entities in the bankruptcy vate creditors. “The producer Bondholders including El- debt at steep discounts, ac- court for the Eastern District of 2020 is going to look differ- liott Management Corp. and cording to people familiar with of Missouri. All mines and of- ent than the producer of Aurelius Capital Management the matter. fices are continuing to operate 2010,” says James Stevenson LP are expected to argue that The company’s bonds and during this process, the com- of IHS Energy. “We’re going Peabody’s debt agreements loans have tumbled in recent pany said, adding that none of back to a model of predomi- significantly reduce lenders’ years along with coal prices. A its Australian operations is in- nantly private ownership.” claims on mines and other as- $1 billion series of bonds Pea- cluded in the filings. The industry’s setbacks sets, leaving more value for body sold just in March 2015 The coal producer said it have been damaging well be- bondholders, the people said. recently traded for 7 cents on has also dropped plans to sell yond Wall Street, especially in The firms are known for in- the dollar, according to Mar- mines in New Mexico and Col- the coal strongholds of Wyo- vesting in distressed debt and ketAxess. orado. ming and Appalachia, wiping a willingness to engage in legal Peabody said Wednesday it —Alex MacDonald out tens of thousands of jobs battles to protect their invest- had obtained $800 million in contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A12 | Thursday, April 14, 2016 THE WALL STREET JOURNAL. FROM PAGE ONE

nounced plans to land astro- currently focused on leafy MARS nauts. greens like lettuce, which has That will be when the potato been grown in small plant comes in handy. chambers on the international ContinuedfromPageOne “When humans go to Mars, space station. While less nutri- tian colonies could be munch- they will want to grow things. tious than potatoes, research- ing on french fries, chips and They’ll need food,” said Chris ers hope the greens will be able mashed potatoes one day. McKay, a planetary scientist at to complement astronauts’ diet. “It’s got to be a Martian po- NASA’s Ames Research Center Scientists say growing tato that tastes good,” Julio in California and participant in food—should humans colonize Valdivia-Silva, a Peruvian astro- the potato study. “I think we’ll Mars—would reduce costs and biologist with NASA, said while be able to find varieties of po- mitigate risks of transporting surveying the reddish-brown tatoes that will grow at cold food by shuttle. desert on a trip to collect soil. and low-pressure conditions. “If something goes wrong, if “It’s a big challenge to take a That would be interesting to you can produce some of your living organism somewhere know for Mars applications.” own food in situ, then you have else. We’ve never done this be- The potato is a major global that as a means to sustain fore.” crop thanks to its ability to yourself,” said Raymond The idea is literally science adapt to a variety of climates Wheeler, a plant physiologist at fiction, included in the Holly- and its abundance of carbohy- NASA. wood blockbuster “The Mar- drates, as well as protein, vita- Until cultivating begins, sci- tian,” where Matt Damon min C, iron and zinc. Peru, entists foresee transporting po- played a stranded astronaut birthplace of the humble tuber, tatoes to Mars in refrigerated and botanist who plants pota- is home to over 4,500 varieties, tubes. They could be planted by

toes to survive on Mars. It’s more than anywhere else, ac- RYAN DUBE/THE WALLmachines STREET JOURNAL in a controlled envi- also not so far-fetched. cording to the International Po- NASA is testing potatoes in Peru’s Pampas de La Joya desert, which it says has Mars-like soil conditions. ronment before humans arrive. Mars One, a Dutch nonprofit tato Center. If Martian soil proves to be too foundation, plans to send indi- Peru is good for the experi- pounds of soil transported from That sometimes makes them so Mr. Amoros said. “I don’t think hostile, there are options of viduals to the planet in about ment because of the Pampas de this desert to Lima. If they bitter they are inedible. they’ll grow in the open air [on growing them without soil by 10 years on a one-way trip to La Joya Desert, one of the dri- grow successfully, the potatoes On Mars, the temperature Mars]. They will have to plant hydroponics and aeroponics, establish a permanent colony. est spots on Earth, which re- will then be planted in a simu- averages minus 84 degrees them under controlled condi- which deliver nutrients in wa- Inventor Elon Musk says his ceives about a millimeter of lator that factors in the atmo- Fahrenheit, with lows of minus tions, in domes.” ter and air, respectively. spacecraft company, SpaceX, precipitation a year. It is part of spheric conditions on Mars. 284 degrees, according to Early space travelers relied They will still need fertilizer, also hopes to send humans South America’s vast Atacama Walter Amoros, a Peruvian NASA. It has high levels of radi- on paste-like food squeezed which scientists say could be within a decade but warned Desert that has long been stud- scientist at the International ation and over 60% less gravity from aluminum tubes. Today, resolved on Mars by recycling during a startup conference in ied by NASA for its Mars-like Potato Center, said he thinks than Earth. Its atmosphere has astronauts have a more appe- nutrients from urine and inedi- Hong Kong in January that it conditions, in particular its half of the potatoes will grow in 96% carbon dioxide, with only a tizing menu: chicken, beef and ble plant parts. would be “hard and dangerous dirt. the desert soil, but only about tiny amount of oxygen. Then even salmon jerky. Salt and Abel Yapo, a student volun- and difficult in every way you For the potato study, scien- 10 will yield a good-sized tuber. there are the dust storms and pepper are provided in liquid teer who helped dig up the des- can imagine.” tists selected 65 varieties of The flavor could change under salty water. form, to prevent them from ert soil, said he hopes one day NASA, which landed the Cu- spuds known to be the most re- the stress, he warned, which is The potatoes “are going to floating away. There is coffee, to eat potatoes on Mars. “It riosity rover on Mars in 2012 silient. common on Earth when pota- pass through an acid test. I’ve orange juice and lemonade, would be a dream,” he said. and found last year that water The first step will be to toes are exposed to severe done tests under stressful con- consumed through straws. “With my potatoes from the re- flows there, has recently an- plant the tubers in over 1,300 drought and high temperatures. ditions, but never so stressful,” NASA’s plant studies are sults we get here.”

monly employed by Islamic ISIS State propagandists, the com- pany found a 40% reduction in these accounts in March com- ContinuedfromPageOne pared with August. ement of warfare in the age of Militant sympathizers are technology, has emerged as a also being shut down faster. vital front against the spread The median lifespan of a tar- of Islamic State extremism—its geted account was less than ideology, recruitment and fi- two days, the analysis found, nancing. compared with several weeks Islamic State controls a lim- last summer. ited amount of territory in Iraq Mr. Walid’s accounts, which and Syria, but social media a year ago lasted a week or puts the terror group within longer, now survive for at most reach of every smartphone, a day and sometimes for less laptop and desktop computer than an hour. in the world. Its potent use of Some Islamic State-related social media has far surpassed content has since shifted to al Qaeda, which in past years other parts of the Web, includ- released poor-quality videos to ing Telegram, a Berlin-based Al Jazeera and other media messaging service that is a mix outlets to bolster calls for of public and private channels. global jihad. Messages from Islamic On Twitter, Islamic State State, also known as ISIS or supporters engage in a noisy ISIL, often appear first on a online war of words. Working private Telegram channel and around the clock, militants are then spread on Twitter and send tweets that swing be- other public platforms by tween promises of paradise for agents such as Mr. Walid, ter- believers and brutal death to rorism analysts said. all who oppose their brand of “There’s an almost infinite religiosity in a digital clash of number of other platforms on civilizations waged every day. which ISIS supporters can dis-

On the other side are those MEGAN MAY FORseminate THE WALL STREET JOURNAL their propaganda,” who seek to do more than bat- Mr. Winter said. tle to a draw. Twitter, which Michael S. Smith II, of Kronos Advisory in Charleston, S.C., tracks online accounts linked to Islamic State; below, one Twitter exchange. Telegram didn’t respond to ramped up its antiterror fight a request for comment. In Jan- last summer, removed more evades Twitter’s countermea- Islamic State supporters use uary, it said on Twitter it was than 26,000 suspected pro-Is- Michael S. Smith II sures. When an online Islamic other forms of social media but removing as many as 10 Is- lamic State accounts in March, @MichaelSSmithII State hunter reports his user- favor Twitter because of its lamic State channels a day and nearly four times the number name, he sometimes changes reach and anonymity. Twitter had banned more than 660 erased in September, according names to keep the account has 320 million active users public channels since Novem- to an analysis conducted for alive a bit longer. world-wide, and new accounts ber. The Wall Street Journal by Re- @gdyydyd @XoXoX_111 @xte431 Do you really think you will win? The Walid account is part of can be created without using a corded Future Inc., a threat-in- a decentralized media empire real name. telligence firm based in Somer- 06:30PM - March 11 2016 run by Islamic State, which re- Twitter Inc., which declined Bliss, barbarism ville, Mass. lies on supporters world-wide to comment for this article, Islamic State messages on- Islamic State supporters to distribute missives in at takes pride in its role as a line generally fall into two have tried to keep pace, estab- least half a dozen languages, global forum of diverse opin- main categories: military tri- lishing more than 21,000 ac- Forum For Publishing intelligence analysts said. ion. umphs and the building of an counts in March, compared @gdyydyd Messages and videos often The company relies mostly Islamic utopia. with about 7,000 in September, originate at Islamic State’s pro- on Twitter users, including Earlier this year, Mr. Walid the analysis found. vincial propaganda offices or CtrlSec, to report offensive tweeted about a car bombing Twitter said in a statement the al-Hayat Media Center, the content. Internal company in Iraq, along with lifestyle on its website earlier this year @MichaelSSmithII @XoXoX_111 @xte431 ask your army how we group’s propaganda-production teams review reports to decide news of Islamic State’s meat that it condemned “the use of send them back home from iraq !! wing focused on non-Arab au- who to ban. inspections and complaints di- Twitter to promote terrorism,” diences, intelligence experts Of the 500 Islamic State ac- vision. Of late, he has posted saying it had deleted 125,000 06:31PM - March 11 2016 said. tivists tracked by Mr. Smith, of photos of spring flowers and accounts since mid-2015 for On a typical day, Mr. Walid Kronos Advisory, about 95% re- other idyllic scenes of daily life threatening or promoting ter- posts dozens of tweets in a turn after being terminated. under militant rule. Barbarism rorist acts. As a result, the chael S. Smith II, chief operat- ment or donations. role that is part jihadist news- “In the name of God the also continues to surface regu- company said, it had seen “this ing officer of Kronos Advisory. Mr. Walid’s account was wire and part militant cheer- merciful may account 139 re- larly. type of activity shifting off The Charleston, S.C., security first spotted early last year, us- leader. His most frequent posts main a thorn in the throats of On a recent March after- Twitter.” consulting firm collaborates ing a longer honorific that sug- are about Islamic State military the infidels and apostates…” noon, the Walid account posted Islamic State operatives with CtrlSec to monitor Islamic gested he was from Kuwait: activities, but he also posts one supporter tweeted in Feb- a routine mélange of news re- mocked the Twitter announce- State’s online activities. Abu Walid Kuwaiti. photos of fighters who have ruary. ports and combat images—in- ment, sending their own mes- CtrlSec believes Mr. Walid’s been “martyred,” as well as im- Even so, Twitter’s shut- cluding men blown up—when a sage: A tweet of a bullet-rid- account is run by an Islamic ages of alleged spies beheaded. downs are making it more dif- CtrlSec activist joined the dled version of the company’s Militant messenger State official who may be in “He tweets and posts pic- ficult for the terror group to Twitter conversation, respond- bluebird logo. The group also No one outside Islamic State charge of a recruiting network tures that only a psychopath operate on its service, the anal- ing to images of a decapitation. distributed a video taunting seems to know who controls in Saudi Arabia. Mr. Smith said would tweet,” said Lara Abdal- ysis by Recorded Future found. The activist, who goes by the shutdown efforts by Twit- Mr. Walid’s Twitter accounts. it was also possible several lat, a Jordanian-born woman Looking at accounts that used @kitten_spatt, alerted two of ter and Facebook. “Is that all His profile picture is a bearded people run the account, all who works for CtrlSec, the any of seven hashtags com- Twitter’s official accounts: you can do?” read a banner at man who resembles Abu conforming to a single style. group monitoring Islamic State “#ISIS psychopath.” the video’s end. Musab al-Zarqawi, the founder One of Mr. Walid’s first on social media. Learning he had been spot- Joining the battle are pri- of al Qaeda in Iraq, a precursor tweets, in February 2015, Charlie Winter, a researcher Islamic State Online ted, Mr. Walid blocked @kit- vate intelligence firms and to Islamic State. Mr. Zarqawi boasted of a fight against U.S.- at Georgia State University Active Twitter accounts using ten_spatt from viewing more of such crowdsourcing organiza- was killed in a 2006 U.S. air- backed Kurdish forces that gar- who tracks Islamic State, said any of seven hashtags related to his messages. He also switched tions as CtrlSec, which draws strike. nered valued weapons for the those operating the Walid ac- theterrorgroup usernames from @xgd393 to online hunters around the The profile picture, which militants, according to records count were “spending all of @zyd393, to mask the account 30,000 live accounts world to watch for suspected has been used for more than a kept by Kronos Advisory and their time trying to make sure from Twitter investigators. terrorists on social media and year, is a way for Islamic State Recorded Future. Islamic State propaganda gath- The CtrlSec operative found other parts of the Web. followers to find each new A month later, Mr. Walid ered in the darkest corners of 25,000 him and reported his new user- Over the past year, CtrlSec Walid Twitter account. His ac- tweeted other alleged military the Internet reaches Twitter.” name: “Abu Walid Kuwaiti/ ma- said it has identified about count usernames vary, typically successes. That account was In dueling tweets earlier 20,000 jor #ISIS propagandist/393rd 120,000 Twitter accounts three letters followed by a reported to U.S. Special Opera- this year, Mr. Walid taunted an acct.” linked with Islamic State, in- three-digit number that in- tions Command. “I’ll tell @US- Arabic-speaking anti-Islamic 15,000 To ensure Twitter wouldn’t cluding hundreds featuring Mr. creases with every iteration: SOCOM where you are if they State activist who often mocks miss him, @kitten_spatt also Walid. At least three of his ac- @vtr488 became @ctr489, for let me eat your liver and brain the Walid account by posting a 10,000 noted the underlying user counts were reported and de- example. after they kill you,” the user version of its profile picture identification number for the leted on the day of the Brussels Some of Mr. Walid’s earlier tweeted to Mr. Walid. with a monkey face. 5,000 account, which the activist re- attacks that killed 32 people. usernames collected more than Others flagged Mr. Walid to “There is nothing you can trieved with a special service. “No terrorist organization in 6,000 followers. Even with the Twitter, which soon closed the do, you dog,” Mr. Walid 0 Twitter suspended Mr. history has launched as dy- recent shutdowns, the account account. tweeted, “if the account is de- Walid within about an hour. namic and ultimately effective still gathers as many as 2,000 Mr. Walid, who posts in Ara- leted or hacked, within three 2015 ’16 Shortly after, a new Walid global influence operation on- or more followers, presumably bic and occasionally in English minutes I’ll be back with a new Source: WSJ analysis by Recorded Future account surfaced, along with line as Islamic State,” said Mi- sympathizers ripe for recruit- and other languages, often one.” THE WALL STREET JOURNAL. the images of beheading. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | A13 OPINION

Trump’s New York Values BOOKSHELF | By Richard Aldous The presiden- The Sinatra an- Serving the tial primaries them also says, “If areinNew I can make it York now, there, I’ll make it with it not be- anywhere.” And so National Interest yond imagin- it is that the immi- WONDER ing that Don- gration tides have LAND aldofTrump been a New York Tower will value since, well, Harry & Arthur By Daniel sweep the since they began By Lawrence J. Haas Henninger state’s 95 del- arriving in the (Potomac Books, 313 pages, $29.95) egates Tues- early 1600s, argu- day by winning all of its 27 ably illegally. n April 12, 1945, Franklin Roosevelt died suddenly in congressional districts. If so, The New York- O Warm Springs, Ga., leaving Harry Truman to assume of- Ted Cruz can blame it and his born candidate fice as 33rd president of the United States. Truman, who possible third-place finish on who in North Caro- had been reluctant to serve as vice president, told a friend: “I that dumb remark about “New lina led chants— feel like I have been struck by a bolt of lightning.” Many won- York values.” “Who’s gonna build dered whether he was up to the task of commander in chief. He says it won him the Iowa the wall? Mex- World War II still had to be won. A postwar settlement would

caucuses. We’re not in Iowa GETTY IMAGES ico!”—knows that need to be fashioned. The low-key Missourian seemed a small- anymore, senator. Donald Trump at a ballgame in Yankee Stadium in 2012. without the steady scale character for such mighty enterprises. Sen. Cruz had a point, but inflow of immi- Watching from the Senate, Republican Arthur Vandenberg he blew it by not describing it never delivered on her prom- Rochester and an airport han- grants, legal or otherwise, to wrote to the new president with words of encouragement. so that even many New York- ises to beleaguered counties gar in Rome (N.Y.). Thursday compensate for the out-migra- “Good luck and God bless you,” he said. “Let me help you when- ers would agree. upstate. She blames George evening, he’ll attend the state tion of natives the past two de- ever I can. America marches on.” In his diary, he was more pen- One example: The greatest Bush’s economic policies. party’s fundraiser near Grand cades, New York City would be sive: “The gravest question-mark in every American heart is moral issue in America is four More revelatory of New Central Terminal, with Gov. in decline. about Truman. Can he swing the job?” To which the optimistic decades of failed inner-city York values, though, is Ver- John Kasich and Mr. Cruz. The As to trade, imposing a 35% answer came, “Despite his limited capacities, I believe he can.” public schools. In New York, monter Bernie Sanders, rant- streets outside, of course, will price increase on goods made Those words seem extraordinary today. The Republicans local liberals won’t lift a finger ing about “Wall Street” and be a zoo of protesters. in China, Mexico, Japan and had not won a national election since 1928. Roosevelt had rid- for minority-district schools in “bankers.” To be clear: Those The irony of the Trump Vietnam—which is to say den roughshod over them in Congress with his New Deal, east Brooklyn, Harlem or the people, much mocked of late “outsider” campaign in New clothing, shoes, foodstuffs, broke the tradition of serving only two terms and fashioned a Bronx. for living on Park Avenue and York is almost too rich for electronics, furniture—would liberal Supreme Court. After 12 years of humiliation and de- such, annually give tens of mil- words. Let’s start with the make living in New York to- feat, FDR’s death could have provided Republicans with an op- lions to support charter relationship between New York tally unaffordable for most of portunity to get on the front foot, to take advantage of an inex- Trump is running schools, scholarships to paro- politicians and real-estate its 8.5 million people. Needless perienced and uncharismatic new president. And yet here was chial schools, social entrepre- developers, an ancient swamp to say, he knows that. Vandenberg, one of the leading Republicans in the Senate, say- against two things neurs, and innumerable non- of crony capitalism. But these New York City ing not only that he believed that made New York profits and arts institutions. Today the city’s politicians people aren’t voting for Mr. the man could overcome his Most, Republican and Demo- green-light thousands of con- Trump in his current incarna- limitations but also that he City great again. crat, would do it without the dominium units—like the tion, so they’re ignorable. Also would do everything he could tax deduction. Trump apartment towers true, however, is that in 2012, to help him. Bernie is praising New York lining the West Side High- an incredible 71% of Asians Lawrence J. Haas’s “Harry & Instead, Andrew Cuomo and for its total ban on hydraulic way—because each one is a voted for Barack Obama be- Arthur” is thus a story of bipar- Bill de Blasio, like Jerry Brown fracking. Let me rephrase that taxpayer-pod sending the pols cause living in Democratic cit- tisanship at work. The subtitle, in blue California, stay afloat as a local political value. New revenue from a combined, top ies like New York, they rarely “Truman, Vandenberg and the on public unions and a liberal York City to upstate New York: city-state tax rate of more than hear the alternative. Partnership That Created the urban sea of smug, yuppie self- Drop dead. 12%. Even so, the city’s perpet- Mr. Trump, an entrepreneur, Free World,” seems at first sight absorption. Donald Trump Donald Trump projects him- ually wrecked road surfaces, should be the ideal pitchman to hyperbolic, at least concerning learned this week that these self as the embodiment of paved with tire-busting steel New York’s many Asians, or to Vandenberg, but Mr. Haas makes people don’t even bother to “New York, New York,” the plates, would embarrass a the black voters former Texas an excellent case that Truman’s vote. In 2013, New York’s now- ethos of making it big as sung third-world capital. Gov. Rick Perry appealed to in worldview could not have been im- unpopular Mayor de Blasio by Frank Sinatra at the end of Still, as a construction guy, his remarkable July speech. In- plemented without the senator from Michi- won with 17% of eligible voters Yankees home games: “Top of Mr. Trump knows as well as stead, Mr. Trump is somewhere gan. The two men shared a vision for America in the world and (turnout was 24%). the list, King of the hill, A- anyone what makes New York in the middle of the state, over the next six years, until the senator’s death from lung New York, after its primary, number-one!” City tick. So why is Mr. A- bashing the people who, he cancer in 1951, set about putting it place. Even a short list will revert to its status as a We then might have ex- Number-One in Rome? Be- knows, are making New York demonstrates the revolution in global strategy that would take blue-state automaton. Just pected the Queens-born Mr. cause that’s where his people City great again. place during the Truman years: the Marshall Plan, the Truman now, New York’s political val- Trump to be campaigning are in a presidential campaign Mr. Trump may win New Doctrine, NATO, the U.N. Charter, not to mention the creation ues are a good subject. everywhere in the city that based mainly on two policies: York’s primary and even the of the CIA, the Defense Department and the U.S. Air Force. Hillary Clinton this week is never sleeps—in the Bronx, building a wall on the Mexican GOP nomination. But he could Much of the focus of this book is on process—how White defending herself against Brooklyn, Staten Island. But border and putting a 35% tax have been better. House policy was realized through legislative action. That charges that as senator, she no, he’s been in places like on goods made in Asia. Write to [email protected] could have been dull, but Mr. Haas, a former communications director for Vice President Al Gore, writes with an admirable lightness of touch and a command of detail that is enhanced by his insider knowledge of how Congress and the White House Vanity Will Be The Donald’s Undoing operate. This is a first-class story, well told, of professional politicians working in tandem during a world crisis in the best By Karl Rove Putin would respect the U.S. tastic job.” Later he added: when the Post’s editorial interests of the republic. At a time when the public and even under President Trump. “He “I’ve gotten unbelievable po- board asked why he felt com- Washington itself seems to have lost confidence in the political e can run, but he said very positive things litical things done.” What kind pelled during a presidential process, the Truman-Vandenberg partnership is a timely re- ‘H can’t hide,” Joe about me,” The Donald re- of political things? Zoning debate to talk about the size minder of what the Founding Fathers had in mind when they Louis once said of plied, confirming that he is changes! “I’ve gotten as many of his private parts, he de- instituted the separation of powers in the first place. fellow boxer Billy Conn. The easily misled by flattery from zone changes as any human fended himself by saying, “I Truman proved a decisive commander in chief, but from the same might be said of Donald anti-American dictators. being on earth, probably.” don’t want people to go start he consulted Vandenberg on major strategic issues and Trump. In March the Republi- He further demonstrated Mr. Trump revealed almost around thinking that I have a later encouraged new Secretary of State George Marshall and can front-runner gave three his ignorance by complaining clinical narcissism, crowing problem.” his deputy Robert Lovett to maintain an informal dialogue long, revealing interviews— to the Times’s David Sanger that his television series, “The Mr. Trump’s newfound with the senator. Each man consciously bent toward the other. two with the Washington and Maggie Haberman about Apprentice,” was “a very, very class was on display this “If Vandenberg needed stroking before he would cooperate, Post and one with the New how Iran is spending the bil- successful show” that made week, in reaction to Satur- Truman provided it,” Mr. Haas writes. “If Truman became York Times—that were not lions released to it under the $213 million, a figure that day’s state GOP convention in mean and petty, Vandenberg’s grace saved the day.” reassuring. nuclear deal. “They’re buying Colorado. Lacking almost any Mr. Trump, who has often everything, they’re buying organization, Team Trump displayed his ignorance about from everybody but the Trump thinks he is so was smoked. Sen. Ted Cruz The Truman-Vandenberg partnership realized myriad policies, added to the United States,” he said. When took all 34 delegates. In re- the Marshall Plan, NATO, the UN Charter, the impression of not having Mr. Sanger reminded the rich, famous and sponse, Mr. Trump tweeted, thought through his presiden- celebrity TV star that U.S. athletic that he can “The people of Colorado had CIA, the Defense Department and the Air Force. tial bid. Quizzed by the Post’s sanctions prevent American their vote taken away from Bob Woodward and Robert companies from selling to skip a real campaign. them” and warned, “This will Costa about how long it would Iran, Mr. Trump was reduced not be allowed!” The senator was pivotal after the 1946 midterms, when the take a Trump administration to saying, “Uh, excuse me?” Actually, it will be. The Republicans became the majority in both houses of Congress. to get rid of the $19 trillion His lack of knowledge “was certified.” In a conversa- state Republican executive He took over the chairmanship of the powerful Senate Foreign national debt, he replied, “I shouldn’t be surprising, given tion with the Post’s editorial committee voted unanimously Relations Committee. From the get-go, he signaled the impor- would say over a period of that Mr. Trump is his own board, he asked a revealing last August to select delegates tance of bipartisanship, insisting on giving his own party the eight years.” principal foreign-policy ad- question: “Do I get more pub- through a convention, not a narrowest majority possible (7-6) on the 13-man committee. In Federal outlays under cur- viser. When Mr. Sanger sug- licity than any human being primary or caucus. Mr. Trump, debates, having already extracted any compromises he wanted rent law will total $38.6 tril- gested foreign affairs was on the earth?” running initially as a lark, from Truman in advance, he unapologetically drove bills lion between 2017 and 2024, “not an area you focused on That isn’t all. “My life has failed to organize in states like through the Senate, maneuvering against isolationist col- the Congressional Budget Of- in your business career,” Mr. been about victories,” he Colorado. Now he demands leagues in his own party and even introducing measures such fice estimated last year. Mr. Trump responded that he boasted to the Post reporters. that the rules be changed as the “Vandenberg Resolution,” which in 1948 gave the presi- Trump would have to slash “had an aptitude for it,” and “Even in sports, I always won. because he didn’t prepare and dent the latitude to negotiate the collective defense agree- the budget nearly in half each “would read about it.” I was always a good athlete. lost. ments that became NATO, something that infringed on the year of his two full terms to Asked what he had read, And I always won. In golf, I’ve Mr. Trump has been run- Senate’s traditional prerogative regarding declarations of war. fulfill his pledge without rais- Mr. Trump said “various won many club champion- ning a vanity campaign. His Vandenberg believed in rigorous debate, but his principal con- ing taxes. Oh, and he promises newspapers.” Pressed about ships. Many, many club cham- looming victory in next week’s sideration was always the American, not the party, interest: to leave entitlement pro- his failure to attract experi- pionships.” He’s a veritable New York primary may dis- “To me ‘bipartisan foreign policy’ means a mutual effort,” he grams, the chief driver of the enced advisers, he responded, Jordan Spieth. courage him from doing so, said “under our indispensable two-Party system, to unite our debt, untouched. Mr. Trump “Many of them are tied up Mr. Trump also believes he but at some point, maybe he official voice at the water’s edge so that America speaks with was not pressed on his inane with contracts working for can project whatever image he should run a real one. maximum authority against those who would divide and con- answer. various networks.” Strange wants whenever he wants. quer us and the free world.” How would he restore in- how other campaigns don’t “After I win,” he said, “I will Mr. Rove helped organize Given the closeness of the relationship, it was no surprise ternational respect for Amer- have the same problem. be so presidential that you the political-action committee that Vandenberg’s name came up as a potential secretary of ica? “Through the aura of per- In all his interviews, The won’t even recognize me.” American Crossroads and is state after Truman won the 1948 election—and both houses of sonality,” he told the Post Donald expressed a high opin- Soon, Donald Trump will be- the author of “The Triumph of Congress, surprisingly, reverted to Democratic control. Van- reporters. They asked if ion of himself, assuring the come synonymous with grace William McKinley” (Simon & denberg quickly moved to quash the idea, telling the president Russian President Vladimir Post’s reporters, “I’ll do a fan- and class. We’ll all forget that Schuster, 2015). that “my best chance to be helpful” remained in the Senate. Even when subsequently piqued by Truman not consulting him on tapping Dean Acheson for the job, and by Senate Demo- crats, now in the majority, insisting on an 8-5 split on the For- & eign Relations Committee, he absorbed the blows. “Although Notable Quotable: A Young Progressive’s Education Vandenberg felt slighted by the Democrats’ committee action From a guest column for But what I discovered at ism in support of LGBTQ and affront to everything I have and the president’s behavior,” Mr. Haas writes, “he quickly the College Fix by Mahad this institution of higher women’s reproductive rights, I worked for in recent years as swallowed his pride and recovered his grace.” Olad, “I’m a progressive stu- learning shocked me to my was highly taken aback by the a civil libertarian. That characteristic of gracefully swallowing one’s pride in dent who’s scared my peers core. display. In my native Kenya, I I finally managed to make the national interest is less valued today than in the 1940s. have gone off the deep end in A raucous demonstration saw firsthand how women are my way into the event—90 Certainly Truman recognized its worth, mourning in 1951 the killing free speech,” April 12: prevented me from even get- denied comprehensive repro- minutes after it began—miss- loss of “a patriot who always subordinated partisan advantage ting inside the door. The un- ductive health care services ing most of it and feeling frus- and personal interest to the welfare of the Nation.” It may As a high school senior liv- ruly protest included a throng and how the LGBTQ commu- trated, confused and con- seem hopelessly nostalgic to look back to some halcyon period ing in St. Paul, I was excited of students holding signs and nity is forced to live under- cerned. That evening I had of courtly manners and bipartisan cooperation. Yet “Harry & to visit the University of Min- shouting that the university ground. I’m only 18, but I have something of an epiphany. Arthur” shows us that it was by working together that these nesota to watch a joint lecture was supporting “transphobic dedicated myself to working I really began to under- two men laid the foundations for the West’s victory in the Cold by Christina Hoff Sommers hate speech.” They chanted against that here. stand the pernicious influence War. For that reason the Republican senator, as well as the and Milo Yiannopoulos. It was “trans lives matter” and “end To suggest I support student activists who would Democratic president, deserves his place among those who, in to be one of my first campus rape culture.” “transphobic hate speech” and normally have my sympathies Acheson’s famous phrase, were “present at the creation.” experiences as I gear up to at- As someone who has been “rape culture” for my desire have on the campus environ- tend Ithaca College in New celebrated by the ACLU of to attend this lecture was not ment, especially when it Mr. Aldous teaches at Bard College. He is writing a biography York this fall. Minnesota for my youth activ- only ludicrous but a personal comes to free speech. of Arthur Schlesinger Jr. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A14 | Thursday, April 14, 2016 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR

Dodd-Frank in Retreat The Big Banks Are More Equal Than Others

t’s been a rough few weeks for President Federal Reserve, which can’t turn off the fund- The correspondent banking system credit-union industry was $6.1 billion Obama’s signature reform of American fi- ing spigot even if it wants to. that Jamie Dimon describes (“Large in 2014, and the lost revenues to credit I Banks and Small Banks Are Allies, Not unions from services that were discon- nance. Across Washington deep cracks are This week’s case neatly captured the unac- Enemies,” op-ed, April 6) has existed tinued or reduced because of added appearing in the foundations countable nature of this bi- for 200 years. While the story of our regulation is at least an additional $1.1 of the Dodd-Frank law Mr. Regulators admit the zarre Beltway creature. The financial system is one of interdepen- billion. This total impact of $7.2 billion Obama enacted in 2010. law hasn’t worked while consumer bureau has been de- dence, the reliance of today’s largest is equivalent to an astonishing 80% of A federal judge has manding that, for its alleged banks on a government guarantee industry earnings and 6% of our credit knocked down a major deci- judges question abuses. sins, New Jersey mortgage against failure has destabilized the unions’ net worth. sion from Mr. Obama’s Finan- lender PHH should pay 18 banking ecosystem and threatens in- It’s time for policy makers to act by cial Stability Oversight Coun- times the amount ordered by stitutions not deemed “too big to fail.” recognizing the need for regulatory re- cil. Also, a federal appeals court panel is the bureau’s own in-house administrative law Community banks are critical of the lief for credit unions and small banks. NUSSLE questioning the constitutionality of Mr. judge. And why not, since the bureau reports largest financial firms, not merely due JIM Obama’s Consumer Financial Protection Bu- to no one? to their size but because concentrating President/CEO reau. On Wednesday regulators officially de- At Tuesday’s hearing, Judge Brett Ka- most of the industry’s assets in a Credit Union National Association handful of banks puts the entire sys- Washington clared that most of the nation’s banking giants vanaugh made it clear that the bureau’s “very tem at risk. The 2008 crisis showed are still too big and too complicated to fail. unusual structure” has him concerned about that the largest banks are powerful Community banks have been stran- Dodd-Frank’s failure on its own terms virtu- more than just a novel way of interpreting lend- enough to bring down the financial gled by a wave of regulation designed ally guarantees that someone will reform it. ing laws. “You are concentrating huge power system, prompt a multitrillion-dollar to reign in the systemically dangerous The question is whether it will be the judicial in a single person and the President has no taxpayer backstop and cause massive “mistakes” of Wall Street, for which or legislative branch. Republicans have been power over it,” Judge Kavanaugh said. economic disruption which exacer- J.P. Morgan Chase has paid more than criticizing Dodd-Frank since it was on the draft- iii bated banking industry consolidation. $23 billion in fines. ing table. More significant is that both Demo- That same day word began to leak out of This isn’t a question of large and Mr. Dimon implies that Main Street cratic presidential candidates are now also Washington of still another failure in the archi- small. It’s a fundamental question of is “inventing conflicts where none talking reform. Obviously a Bernie Sanders re- tecture of Dodd-Frank. On Wednesday morning concentration, risk and moral hazard. need exist.” From his lofty perch on America faces many challenges and Wall Street, and with the blessed as- write of financial rules would look very differ- the Fed and the Federal Deposit Insurance Cor- one of them is how to address the sys- surance of too-big-to-fail/too-big-to- ent from a Ted Cruz version. But outside of the poration confirmed the results of their study temic risks posed by our too-big-to- jail status, one can forgive Mr. Dimon White House, the status quo has almost no con- of “orderly resolution” plans at America’s big- fail institutions. for not being able to recognize the stituency. And with Barack Obama due to va- gest banks. Known as “living wills,” they are CAMDEN R. FINE strife endemic within a system that cate the premises in just nine months, Dodd- supposed to show in detail how these banking President and CEO guarantees an unlevel playing field. Frank’s flaws are becoming impossible to titans, in the event of failure, could be placed Independent Community Bankers of Community bank “mistakes” end in fi- ignore. into bankruptcy without wrecking the financial America nancial ruin and criminal referrals. Two weeks ago U.S. District Judge Rosemary system. Washington This un-American, two-tiered system Collyer rescinded the government’s designation The Fed and the FDIC agreed that the plans of justice opens prisons for commu- of insurer MetLife as a “systemically important submitted by five of the eight banking giants Regulations brought about by ac- nity bankers, while allowing Wall financial institution.” It was the first time such reviewed were “not credible.” Bank of America, tions of banks like Mr. Dimon’s are ab- Street to pay for its sins with share- solutely affecting our ability to serve holder money. a designation had been challenged in court. In- Bank of New York Mellon, J.P. Morgan Chase, members and the communities in PRESTON L. KENNEDY deed in its first title defense, the stability coun- State Street and Wells Fargo received these fail- which we live and work, through no President and CEO cil created by Dodd-Frank lost by a knockout. ing grades. The plans from Goldman Sachs and fault of our own. Bank of Zachary Judge Collyer called the council’s decision “un- Morgan Stanley were deemed “not credible” by The regulatory cost impact on the Zachary, La. reasonable” and the result of a “fatally flawed” one of the two agencies. And even though Citi- process. group was the one kid in the class who managed iii to pass both the Fed and FDIC tests, regulators This week in the same D.C. Circuit, an ap- found “shortcomings” there too. Climate Change: More Losers Than Winners peals court panel is questioning whether an- Much of the press may play these results as other Dodd-Frank creation should even exist. another outrage committed by giant banks, but In his April 7 op-ed “An Over- dence—nicely summarized in the fed- Government attorneys may have figured they this is fundamentally a failure of Dodd-Frank heated Climate Alarm” Bjorn Lom- eral report—makes clear that climate borg targets the recent Federal Cli- change is a pressing health concern, would have to explain only why the new Con- to keep its central promise. Six years after the mate and Health Assessment, and that both adaptation and mitiga- sumer Financial Protection Bureau is ignoring law was passed, and eight years since the finan- focusing on the balance between tion must be urgent priorities. the parts of federal housing law it doesn’t like cial crisis, regulators given broad authority to cold-related deaths avoided and heat- HOWARD FRUMKIN, M.D., DR. P.H. and overturning long-standing interpretations remake American finance, with thousands of related deaths caused by climate University of Washington of others. regulatory officials on their payroll, cannot fig- change. He complains that the report Seattle But earlier this month the appeals court ure out a system to allow financial giants to fail, “not once” mentions that more peo- JONATHAN PATZ, M.D., M.P.H. warned them to be ready to respond to larger even in theory. What are we paying these peo- ple die of cold than heat—a com- University of Wisconsin, Madison questions about the new agency. The consumer ple for? plaint that is plainly false (see the Madison, Wis. bureau is an odd creation. Unlike most indepen- As the search continues for people outside chapter on temperature). Mr. Lom- dent agencies, it isn’t run by a bipartisan board 1600 Pennsylvania Avenue who believe that borg is right that cold-related deaths Longevity in both cold North Da- will decline, but quantitatively com- kota and Hawaii top the list in the but by a single director. It also doesn’t have to Dodd-Frank is reforming the U.S. financial sys- paring this health benefit with the U.S. Canadians above the 49th paral- pay attention to Congress because it doesn’t re- tem, judges are beginning to question the law’s health penalties of hotter weather lel live longer than Americans: 81 quire annual appropriations from legislators. most basic premises. Just possibly, taxpayers and more heat waves is complex, as years versus 78.7 years. Moving to a The bureau simply draws its budget from the can contemplate a better future. the report clearly acknowledges. warmer spot like Texas and Florida More important, Mr. Lomborg may be fine for moneyed retirees, but misses the forest by arguing about for the rest of the world’s population Trouble in Kim’s Kitchen just one tree. Heat is just one of it’s often impractical. Syria’s refugees many exposures by which climate would happily live out their lives in hirteen North Koreans defected to the punished if they defect. change threatens human health. Se- Norway or Germany, and longevity South last week from China. That may In February South Korea urged its citizens vere storm events kill and displace for them would have little to do with T people. Insect-borne disease risk the local weather. not seem significant, especially since to stop patronizing North Korean restaurants spreads, as warming allows West Nile Global warming will still have dele- they were waitresses rather abroad, part of a broader or Zika-carrying mosquitoes and terious effects on the world’s coast- than high officials. But in the North Korean defectors tightening of policy after the Lyme-ridden ticks to expand their lines, air quality, water supplies and secretive and topsy-turvy raise questions about North’s latest nuclear and range. Nutrition is threatened as the agriculture—those are the biggies. world of the Kim regime, missile tests. Soon reports nutrient content of crops decreases WILLIAM L. SEAVEY this gutsy group defection the regime’s control. circulated that the restau- and changes in weather threaten our Cambria, Calif. suggests trouble in the rants owed staff back wages breadbasket. Heat and stagnant air workers’ paradise. and some shut down. masses threaten respiratory health Climatologists should consider an The North Korean restaurant in Ningbo that It’s nonetheless surprising that a group of from ozone (smog) pollution. alternative explanation for the ob- employed the defectors is one of 130 that workers defected together, since North Kore- Fortunately, the solutions to cli- served migration patterns away from Pyongyang runs in China and 11 other coun- ans are encouraged to report on each other mate change are also public health places like Michigan and Minnesota tries to earn some $10 million annually. They for disloyalty. It’s also unusual that Chinese prescriptions: clean sources of en- to places like Florida and Texas: ergy, such as the ever-cheaper wind taxes. attract customers not with the food, which is authorities allowed them to leave China for and solar; active transportation such RICK CROSBY terrible and overpriced, but with a glimpse a third country instead of detaining and repa- as walking, cycling, transit and urban Darien, Conn. into the North’s totalitarian facade. Attractive triating them to the North. green spaces. waitresses sing and dance to kitschy ballads It’s too early to say that Kim Jong Un’s hold There’s no place for selective, gra- praising the Kim family. on the Pyongyang elite is slipping as sanctions tuitous contrarianism in assessing the A Smartphone Is Very Much The restaurants are controlled by the Kim begin to bite. But this week South Korea dis- science of climate change. Any fair More Than Just a Telephone family’s Office 39, which coordinates the sale closed that a senior colonel from Pyongyang’s reading of the growing body of evi- of drugs and other criminal activities abroad, powerful Reconnaissance General Bureau de- L. Gordon Crovitz’s “FBI vs. Apple suggesting they are fronts for money launder- fected last year. Signs that the regime is under Isn’t Over” (Information Age, March ing. They are staffed only with hand-picked stress show that the North is not as self-suffi- Sequoia’s Redemption With 28) doesn’t take into consideration the view that my iPhone 6s is an ex- regime loyalists—preferably those with family cient as it likes to claim, and more pressure Securities Is Tax Efficient tension of my “person.” Notwith- members back in North Korea who will be could bring it to its knees. For many years Sequoia Fund has standing his comparison to banks clearly disclosed that we can and do and telecoms, my smartphone may pay large redemptions with securities contain messages between myself Verizon’s Political Strike rather than cash, and we have done and my attorney. Although not un- so thousands of times before this der the same protection as attorney- s Hillary Clinton and Bernie Sanders an industry-competitive 401(k) match. year without incident. So we were client privilege, does anyone want chase each other further to the left, it Yet Verizon and the unions have largely puzzled by “Sequoia Clients Get Stock messages between themselves and A Shock” (Business & Finance, April 9) their physicians to undergo govern- was only a matter of time before some- agreed about compensation. The unions pre- body decided to capitalize on ferred to make a political questioning the practice as a “shock” ment scrutiny? What about mes- their competition. The Demo- Sanders and Clinton join statement about expanding to investors and trying to tie recent sages between a pastor and one of in-kind redemptions to our Valeant his congregants? crats have now helped inspire the ranks of the Americans picket lines on behalf of stake. This policy isn’t new, is unre- It appears the Supreme Court, not the largest domestic strike in lucky enough to have decent- lated to the ups and downs of our Congress, needs to weigh in on this years—and it’s pure political the rotary-phone era. paying jobs, which apparently fund and, specifically, is unrelated to one. performance art. means showing solidarity our holding in Valeant. JOHN LAIDO On Wednesday, more than with an increasingly obsolete We redeem with shares to benefit Brooklyn, N.Y. 36,000 Verizon workers on the East Coast business model. our continuing shareholders, who walked off the job after their unions rejected Some 99% of the strikers work for Verizon’s might otherwise pay capital-gains It is ironically symbolic that Mr. the telecom’s latest contract offer in a 10-month legacy “wireline” business, or its traditional taxes on the sale of appreciated stock Crovitz’s opinion column arguing negotiation. The Communication Workers of fixed phone service plus its fiber optic Internet that might be required for redemp- against data security in favor of the America and the International Brotherhood of service. This unit generates only 7% of Verizon tions. By redeeming in kind, our prying eyes of the state is opposite Electrical Workers wanted a public spectacle, operating income, down from 60% in 2000— 20,000 continuing Sequoia sharehold- a story titled “China Website Staff ers will pay lower capital-gains taxes Go Missing After Post” (World and did they ever get one. wireless is more profitable—and as more cus- in the future. Our goal is always to be News) on the facing page. Once gov- Mr. Sanders joined a picket line in Brooklyn tomers ditch land lines, it is only natural that tax-efficient and to do what is right ernment has usurped a power, even and began, “Brothers and sisters, thank you for these old-fashioned networks will require fewer for continuing shareholders. For a de- for ostensibly legitimate reasons, it your courage and standing up for justice against workers to operate and maintain. parting shareholder, there is no tax will be expanded in scope under var- corporate greed.” He went on to accuse Verizon But Verizon isn’t even looking to shed jobs. or other consequence to receiving ious pretexts until it has extin- of “trying to destroy the lives of working Amer- It is merely seeking more flexibility to manage stock instead of cash, aside from the guished our liberties. icans,” and that was the subtle part. Mrs. Clin- its workforce, such as consolidating under-used minor inconvenience of having to sell MICAH B. HABER ton demanded that the company “do the right call centers and the ability to hire more outside a security upon receipt. We take care Minnetonka, Minn. thing” and tender “a fair offer to their workers.” contractors. “Nostalgia for the rotary-phone era to always deliver stocks that trade in The Democrats are not exactly Bobby Ken- won’t save American jobs,” Verizon CEO Lowell sufficient volume so that the exiting Letters intended for publication should nedy communing with Cesar Chavez and desti- McAdam wrote in a LinkedIn post. shareholder can sell them immedi- be addressed to: The Editor, 1211 Avenue ately without depressing the market of the Americas, New York, NY 10036, tute grape pickers. How’s this for “fair”? The Mr. McAdam also called Mr. Sanders’s rheto- for a particular security. or emailed to [email protected]. Please walk-offs enjoy an average annual pay and ben- ric “contemptible,” publishing a detailed rebut- DAVID M. POPPE include your city and state. All letters efits package of $130,000. Management is offer- tal. Credit is due to the rare executive willing President are subject to editing, and unpublished ing a 6.5% cash wage increase, the same health to defend economic reality and stand up to po- Sequoia Fund letters can be neither acknowledged nor returned. coverage as its other domestic employees and litical intimidation. New York For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | A15 OPINION The Algorithm Is an Editor

By Jeffrey Herbst Facebook’s Instant Arti- raphy and expressions of or Internet service and about the cles. For struggling print hate speech, thereby im- choices they make. Information ocial media companies publications that have yet mediately exercising edito- arrived at through data mining, such quickly are becoming the to fully monetize their rial control. as the public mood on particular dominant news providers digital products, social Inevitably, as their prom- issues, is already making its way into S for many Americans and media platforms are a new inence and ambition grow, presidential debates and other polit- citizens across the world. source of advertising reve- the tech companies will be ical discussions. Google is training The implications of this revolution nue. For tech companies, moved to do more. For reporters on how to use its data. It are significant for how we under- the news is just more con- instance, Facebook recently is hard to imagine that the tech stand the information ecosystem and tent that they can use to announced that it would companies will resist further exploit- our democracy. entice readers to stay on ban private sales of guns on ing their store of information so that In only a few years, the number of their platforms longer to its platform. While this may they can remain mere “pipes” in an Americans who get their news (as be exposed to more ads. be a good idea, no one had increasingly competitive market. opposed to the latest cute cat videos) But the change is pro- argued that gun sales were As these companies enter further from Facebook, Google, Apple and found. Facebook has imple- the most pressing problem into the news arena they will have Twitter has increased markedly. Four mented algorithms that among the many Facebook to develop an understanding of in 10 adults in America now get news will determine who sees posts. Rather, the policy where their editorial role fits into which Washington Post ar- originates in management’s American and world society and ticles. Two people with beliefs. how they see themselves aligning Google, Facebook and other very similar interests may Or consider counterter- with societal goals. Certainly a tech companies say they get different news, depend- rorism, where the growing fundamental challenge will be to ing on what Facebook’s implausibility of solely be- delineate how their for-profit im- aren’t news organizations, servers believe is best for ing a distribution network, perative and shareholder demands but the claim is becoming each reader. This is an ex- neutral to content, is most interact with their role as providers traordinary change from obvious. Islamic State and of information.

increasingly implausible. when a newspaper editor GETTY IMAGES/IKONother IMAGES radical groups have The legacy media companies ad- determined what the become experts at using dressed this issue by trying, admit- reader would see either in print or provide information through search social media to recruit members. The tedly with varying degrees of success, from Facebook and one in 10 from via the paper’s own website. or recommendations. It is also com- tech companies have reacted with to establish walls between the depart- Twitter, according to the Pew Re- Tech companies are adamant that mercially convenient, because it may steps that, while eminently sensible ments responsible for editorials, news search Center. “Among Millennials,” they are not news providers but sim- help them avoid some difficult prob- and responsible, seem to contradict reporting and advertising. This will be Pew researchers write, “Facebook is ply distribution networks. In a recent lems, including libel. their position as simply “pipes.” far more difficult in an era where far and away the most common interview with Business Insider, Face- Yet as technology evolves, the Twitter has removed tens of thou- algorithms—not editors—often con- source for news and information book’s Mark Zuckerberg said, “I think tech companies’ position that they sands of accounts promoting Islamic trol the content and ads a person about government and politics.” the platform is the core of our prod- are not news organizations becomes State. Facebook removes posts that consumes. Tech companies, seeing the eco- uct that people use to share and con- increasingly implausible. Simply by express support for terrorists or con- An informed citizenry depends on nomic promise of this trend, are sume media, but we ourselves are not presenting articles in a different done violent acts. It has also provided robust sources of news. How technol- working hard to become the domi- a media company.” Officials I have manner, the tech companies pro- free ads to those who provide “coun- ogy firms position themselves as nant distributors of news. Facebook’s spoken to at Google, Apple and Twit- foundly affect how news is con- ter speech” to extremist groups. news providers, and the choices they Instant Articles, which allow news ter similarly insist that they aren’t sumed. In addition, they increasingly It could be argued that the tech make as a result, will have an effect stories to load much faster than news companies but simply deliver are inserting themselves and their firms are not news companies be- not only on the companies them- before, will be open to all publishers content that their algorithms find views into the news stream. Both cause they don’t have reporters. How- selves but also on the quality of our in April. Apple has launched Apple people want or, in the case of Face- Apple News and Twitter’s Moments ever, that 20th-century model does democracy. News, Google offers Accelerated Mo- book and Twitter, that users’ friends employ human curation to highlight not really apply to modern firms. bile Pages, and Twitter has Moments. or followers recommend. important stories, so an element of What the social media companies Mr. Herbst is the president and The Washington Post has made all This stance reflects Internet com- editorial selection is obvious. All try have is a treasure trove of informa- chief executive officer of the of its daily content available through panies’ historical role as “pipes” to to scrub out some types of pornog- tion about anyone with a smartphone Newseum in Washington, D.C. Why the MetLife Case Bears Watching Well Beyond Wall Street By Peter J. Wallison of MetLife as a SIFI was clearly that. Collyer’s ruling thus calls into ques- Congress had unconstitutionally del- The deference idea encourages The financial conditions that might tion whether any firm can be consid- egated its exclusive authority to Congress to dodge tough decisions ederal district Judge Rosemary exist in the future, when MetLife ered “systemically important” unless make the laws. But this practice has by giving administrative bodies, F Collyer sent a shock through might suffer “material financial dis- an agency, like the council or the Fed, fallen into disuse. Instead, federal whose members don’t run for re- the financial community on tress,” are unknown and indeed can produce such evidence. courts now often validate agency election, broad mandates over con- March 30 by striking down the des- unknowable. The MetLife case is not about stat- discretion, holding that these bodies, troversial issues. As a result, these ignation of MetLife as a systemically The Justice Department, repre- utory authority. Dodd-Frank unam- staffed by alleged experts, deserve agencies have grown into what is important financial institution senting the council, told Judge biguously grants the council discre- “deference” when they fill in the essentially a fourth branch of gov- (SIFI). Her opinion, released to the Collyer that because of the council’s tion to designate financial firms as blanks left open in laws that Con- ernment, what many call an adminis- public last week, is more than a expertise in financial regulation, its SIFIs on whatever grounds it chooses. gress has enacted. trative state. The MetLife case could challenge to the authority of the opinion about this matter must be The issue raised by Judge Collyer is At the Supreme Court, this valida- test whether Congress, in Dodd- Financial Stability Oversight Council. given deference by the court. whether—no matter what Congress tion has often satisfied both sides: Frank, finally went too far. It is a challenge to the power of the MetLife’s counsel argued instead says—this or any other agency can conservative justices, who believe in entire federal bureaucracy. that the council’s decision to label the base a decision on nothing more than judicial restraint, and liberal justices, Mr. Wallison is a senior fellow at company a SIFI, with no evidentiary an opinion about what may happen in who generally support administra- the American Enterprise Institute and foundation of any kind, was ipse dixit the future. tive power. Lately, however, Chief the author of “Hidden In Plain Sight: A ruling against federal (a Latin phrase that means, essen- Federal courts used to rein in the Justice John Roberts, and Justices What Caused the World’s Worst tially, “because I said so”). Judge Col- discretionary authority of admin- Clarence Thomas and Samuel Alito, Financial Crisis and Why it Could regulators could mean a lyer agreed. An agency, she said, must istrative agencies by ruling that have begun to question this course. Happen Again” (Encounter, 2015). brake on the wild growth engage in “reasoned decisionmaking” or its action will be deemed arbitrary of the administrative state. and capricious. But the council’s anal- ysis of MetLife “never projected what Misplaced Worries About Solo Investors the losses would be...orhowthe The Treasury Department intends market would destabilize as a result.” By Joe Ricketts the best execution involves where sponsible assertions that competition to appeal her ruling, and whatever She concluded that a “predictive judg- orders get routed. The broker who among market centers for order flow happens at the next step of litigation, ment must be based on reasoned o individual investors get a took the order may try to match buy- has led brokerages to ignore their the case is likely to reach the predictions,” and “a summary of the D square deal when they trade ers and sellers among his business’s best execution obligation and simply Supreme Court. MetLife v. Financial company’s assets and financial expo- stocks? There has been a lot of clients in-house—called internaliza- channel orders to the market center Stability Oversight Council bears sures is not a prediction.” discussion about the question, in par- tion—or he may send the order out to that paid them the most. watching far beyond Wall Street: Ulti- In other words, Judge Collyer ticular about where and how brokers a third-party market center. Market Yet there is nothing shadowy mately, this case could determine found that the discretion provided to route their customers’ orders. As centers include electronic exchanges about market centers competing for whether the administrative state will the council by Dodd-Frank violated someone who spent his professional like NYSE and Nasdaq, as well as order flow. Paying for order flow be contained within judicially and the underlying policies of the Admin- life trying to empower people to market makers, which are firms that began in the late 1990s and has been statutorily created boundaries, or istrative Procedure Act, which autho- make informed investment decisions, trade for their own accounts to make well-established in the U.S. since the continue its unrestrained growth. rizes courts to dismiss federal agency I understand the concern. But it’s markets in particular securities. mid-2000s. Since 1994 the SEC has The Financial Stability Oversight decisions that are not based on misplaced. required broker-dealers to disclose Council, a creature of the Dodd-Frank evidence. For this reason, the ruling Consider the vast improvements publicly to new customers, on trade Act, is a 15-person board composed has far-reaching ramifications. in stock markets. Individual, or re- Criticism of how customers’ confirmations and in public quarterly largely of the heads of the federal It is difficult to see how the coun- tail, orders get filled 10 times faster reports that they are receiving order- agencies that regulate financial ser- cil, or any other federal agency, can than a decade ago. Commission rates orders are routed reflects a flow payments. vices. It can designate any nonbank meet Judge Collyer’s standard, have fallen by nearly 70% since 1997. misunderstanding of how The effect of this transparent com- financial firm as a SIFI, singling it out except where there is clear support- The prices at which orders are filled petition has been extremely positive for stringent oversight by the Federal ing evidence for a prediction—for beat quoted prices 91% of the time, market centers compete. for retail brokerage clients. Accord- Reserve, if the council believes that example, where the weight of scien- versus 14% a decade ago. And 99% of ing to data analysis firm RegOne the “material financial distress” of tific evidence supports its view that all market orders are filled in their Solutions, competition among market the firm “could pose a threat to the a certain action will cause a pre- entirety. Market centers compete fiercely centers for order flow has resulted in financial stability of the United dicted result. The supposed problem is what hap- for order flow. In part, that’s because retail investors receiving more than States.” The council can also deter- Other cases are not so easy. In Feb- pens after an individual investor they need strong order volume to $600 million in direct price improve- mine whether “the nature, scope, ruary 2014, the Federal Reserve ad- enters an order to buy or sell a stock. produce robust trading and liquidity. ment to buyers and sellers from mar- size, scale, concentration, intercon- opted enhanced prudential standards At this point the broker is legally obli- When the market for a stock is liquid, ket centers in 2014 alone, up from nectedness, or mix of the activities” such as stricter liquidity requirements gated to try to make the trade at the it means investors are actively buy- roughly $100 million in 2004. And of any financial company could pose for bank holding companies, with the most favorable terms reasonably ing and selling it, and that means that doesn’t take into account the a similar threat. proviso that the standards will get available—including such factors as trades can be executed quickly and at extent to which revenue from pay- Judge Collyer’s decision challenges “more stringent” as these firms be- price, speed, the likelihood of partial good prices. The fact that the current ments for order flow permit broker- whether the council—or, for that come more “systemically important.” or full execution, transaction costs, equity-market structure has generally ages to offer lower commissions and, matter, any other federal administra- Systemic importance is clearly a and customer needs and expectations. produced robust liquidity is one of in many cases, free extra services tive body—can base its decisions on prediction about the future effect of a This obligation, called “best execu- the main reasons orders are getting such as powerful technology plat- nothing more than a prediction about firm’s “material financial distress” for tion,” is a big deal; it is why regulators filled faster, cheaper and at better forms, access to third-party research the future that is unsupported by which an administrative agency must like the Securities and Exchange Com- prices. reports and online education. evidence. The council’s designation have supporting evidence. Judge mission and the Financial Industry Some market centers compete for There is no doubt the industry can Regulatory Authority require brokers order flow by paying brokers to get do even better. Providing investors to conduct regular, rigorous reviews their orders, usually small fractions of with more and easier access to infor- of their execution quality. a cent per share. And this is what all mation about payments for orders PUBLISHED SINCE 1889 BY DOW JONES & COMPANY A significant factor in determining the recent brouhaha is about—irre- will permit them to decide if they are comfortable with their broker’s rout- Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp ing practices. If not, they can take Gerard Baker William Lewis their business elsewhere. Editor in Chief Chief Executive Officer and Publisher Notable & Quotable: Verizon But improvements need to be Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT: thoughtful, measured and informed Deputy Editors in Chief Ashley Huston, Chief Communications Officer; From a LinkedIn post by Verizon the last two years—that’s a 35% tax by the fact that the current market DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; CEO Lowell McAdam, April 13: rate in 2015, for anyone who’s count- structure has produced incredibly Michael W. Miller, Senior Deputy; Mark Musgrave, Chief People Officer; ing....Thesenator has started to Edward Roussel, Chief Innovation Officer; favorable conditions for individual Thorold Barker, Europe; Paul Beckett, Asia; I read with interest Jeff Immelt’s fudge his language—talking of taxes Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; investors. It is a mistake to obsess Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer spirited response to Sen. Bernie not paid in some unspecified “given over one practice without consider- News; Ann Podd, Initiatives; Andrew Regal, Video; OPERATING EXECUTIVES: Sanders putting GE on his hitlist of year”—but that doesn’t make his ing how it, and all the other pieces, Matthew Rose, Enterprise; Stephen Wisnefski, Nancy McNeill, Corporate Sales; big corporations that are “destroying contention any less false. Professional News; Jessica Yu, Visuals work together to produce the cur- Steve Grycuk, Customer Service; the moral fabric” of America. Sen. Sanders also claims that Veri- rent, favorable environment for retail Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International; Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: In fact, I feel his pain. Verizon is in zon doesn’t use its profits to benefit traders. As with doctors, the first WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, Sanders’s bull’s-eye, as well. The sen- America. Again, a look at the facts rule should be: Do no harm. Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; ator’s uninformed views are, in a says otherwise. In the last two years, Professional Information Business: Chris Collins, Advertising; Jason P. Conti, Legal; word, outrageous. Here’s why. Verizon has invested some $35 bil- Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; Mr. Ricketts, the founder of TD Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head His first accusation—that Verizon lion in infrastructure—virtually all of Ameritrade, now pursues entrepre- Larry L. Hoffman, Production doesn’t pay its fair share of taxes—is it in the U.S.—and paid out more neurial and philanthropic projects.

EDITORIAL AND CORPORATE HEADQUARTERS: just plain wrong. As our financial than $16 billion in dividends to the Alfred Levitt, president and general 1211 Avenue of the Americas, New York, N.Y., 10036 statements clearly show, we’ve paid millions of average Americans who counsel of Hugo Enterprises LLC, Telephone 1-800-DOWJONES more than $15.6 billion in taxes over invest in our stock. helped with research for this op-ed. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com CITY NEWS A18, A19 | ARTS & ENTERTAINMENT A25 | SPORTS A26

Liang Juror Under Scrutiny Don’t Be So Blue CITY NEWS | A19 Reviewing the Knicks 2015-16 season | A26

WSJ.com/NY **** THE WALL STREET JOURNAL. Thursday, April 14, 2016 | A17 De Blasio Keeps City Agencies On Short Leash

BY JOSH DAWSEY learned as time passed to del- egate more but still struggled. New York Mayor Bill de Bla- “I would micromanage you for sio has taken a more hands-on a while, and then if I trusted and ideological approach than you, I gave you more room. If his predecessor in managing I didn’t, I would find someone the city’s 44 agencies, a style else.” that sometimes drags out de- Mr. de Blasio said last week cision making and frustrates he was “aggressive” managing some of his commissioners. agencies and was “very proud In the de Blasio era, com- of being a hands-on leader.” missioners are required to Mr. de Blasio’s management provide weekly reports, sub- style has come under scrutiny mit so-called decision memos in recent weeks as he has to multiple layers of review faced questions after saying and run prospective senior- he didn’t know about the city’s staff hires by the mayor’s of- approval of a Lower East Side fice, according to documents land deal now under investiga- and current and former city tion and a federal probe into officials. the city’s public housing au- “The Bloomberg adminis- thority.

LEFT TO RIGHT: BRIAN SNYDER/REUTERS; ANDREW RENNEISEN/GETTY IMAGES; TABLE IMAGES: AP (3); REUTERS (1) tration was the golden era of Bernie Sanders hoists a hot dog at Nathan’s Famous in Coney Island. Hillary Clinton has her eyes on a slice of cheesecake at Junior’s. being a commissioner,” said Mayor Bill de Blasio Staten Island Borough Presi- dent Jimmy Oddo, a Republi- said he was ‘very can who has worked closely proud of being a Brooklyn Has Its Moment with Mr. de Blasio and his pre- decessor, Michael Bloomberg. hands-on leader.’ “There has been a sea change BY MIKE VILENSKY A self-described Democratic between de Blasio and The Candidates’ New York States of Mind socialist, Mr. Sanders has po- Bloomberg. City Hall is now “If it’s something that is As “Girls” star and Brook- sitioned himself as a more more involved.” strategically complicated, if lyn’s own Lena Dunham Bernie Sanders Hillary Clinton left-wing alternative to Mrs. Like Mr. Bloomberg, Ed it’s something where there are stumps for Democratic presi- Headquarters Clinton, who holds a large lead Koch took a largely hands-off real substantive and philo- dential front-runner Hillary Gowanus Brooklyn Heights in convention delegates and approach to managing agen- sophical issues, I’d rather [is- Clinton, her television co- U.S. senator from the bulk of political endorse- cies when he was mayor, said sues] come to City Hall than Born in Brooklyn Credentials star Alex Karpovsky, New York ments. He has fo- Jonathan Soffer, who wrote a be held at the agency,” he said. who lives in the bor- Supporter cused much of his biography about Mr. Koch and In the weekly reports to the ough’s Greenpoint Canal Bar hang-out Monty Q’s campaign on as- interviewed him and many of mayor’s office, Mr. de Blasio’s area, is backing ri- sailing money in his commissioners. commissioners list contacts val Bernie Sanders. Hot dog at Campaign Cheesecake at politics and cor- Former Mayor Rudy Giu- with outside politicians, lobby- Mr. Karpovsky, Nathan’s food stop Junior’s porate greed, liani took a more aggressive ists and others, along with an who plays Ray while Mrs. Clin- approach. account of their activities. Ploshansky on the ton has said she “I was accused all the time Under Mr. de Blasio, the New York City Brooklyn-centered tele- Official New York Gov. can better handle a of being a micromanager,” said mayor’s office reviews re- Councilman Rafael vision show, said endorsement Andrew Cuomo wide range of is- Mr. Giuliani, who added he sumes from at least three fi- Espinal about half of his sues. sometimes met with commis- nalists when agencies want to friends are sup- Brooklyn sioners four times a week and hire senior staff, and the porting Mrs. Celebrity has faced sim- liked a “military-style” power mayor’s office approves the Clinton. “We’ve Spike Lee backer Lena Dunham ilar ideological structure. Mr. Giuliani said he Please see MAYOR page A18 kept the discus- battles before. sions pretty In 2014, Zephyr civil,” he said. Brooklyn Yankees or Rooted for the Teachout, a little- This year, Brooklyn Dodgers Mets? Yankees known left-leaning law Leak Puts Focus has an outsize presence professor, ran an insur- in the Democratic gency campaign presidential primary, against incumbent handing Kings New York Gov. Andrew On Lost-Art Case County’s 853,000 reg- neighbor sparring vided health care Cuomo, a centrist istered voters, the sessions. for 9/11 first re- Democrat. Mr. Cuomo most of any borough in “This is like the lu- sponders. won the primary in Brook- BY JENNIFER SMITH work after Christie’s auction New York City, a starring nar eclipse,” said Brook- Mr. Sanders has his own lyn and every other borough house sold it in 1996. role in national politics. lyn Borough President Eric Ad- hometown advantage. Though in the city. Leaked documents from the The work is owned by In- On Thursday night, Mrs. ams, a Democrat who hasn’t he has long been a face of Ver- Assemblyman Joseph Len- so-called Panama Papers have ternational Art Center SA, or Clinton, who represented New endorsed a candidate. The mont, he was raised in a tol, a Brooklyn Democrat who shone an international spot- IAC, an offshore entity regis- York for eight years in the U.S. race is “a window of opportu- south-central Brooklyn enclave is backing Mrs. Clinton, said light on a New York legal bat- tered in Panama. The painting Senate, and Mr. Sanders, who nity” for national figures to with a large immigrant popu- she helped bring school aid to tle over an Amedeo Modigliani is stored in a warehouse at the was born and raised in Brook- address poverty in parts of lation. the borough. But no matter painting that was allegedly Geneva Freeport in Switzer- lyn and now represents Ver- Brooklyn like Brownsville, he “His vision of a society what, Mr. Lentol said, he is looted by the Nazis. land, where fine art and other mont in the Senate, will face said. where we’re all in this together glad Brooklyn is getting “a The 1918 portrait, “Seated valuables can be held without off at the Brooklyn Navy Yard, Mrs. Clinton, who leads Mr. was shaped in large part by his good election to determine Man With a Cane,” has an esti- incurring taxes. their last debate before the Sanders in the latest Wall upbringing in Brooklyn,” said who is the sweetheart of New mated worth of as much as According to recent reports state’s primary on Tuesday. Street Journal-NBC News-Mar- Karthik Ganapathy, a spokes- York.” $25 million. The Nazis confis- by the International Consor- The Brooklyn political ral- ist poll of likely Democratic man for the candidate. The Mrs. Clinton maintains wide cated the painting from the tium of Investigative Journal- lies, candidate sightings and voters in New York 55% to borough now, Mr. Ganapathy support among New York’s Jewish art dealer Oscar ists, IAC was set up in 1995 by campaign staffs competing for 41%, has touted her work rep- said, “is in some ways a micro- high-ranking politicians, in- Stettiner after he fled Paris in the Nahmad family—a wealthy support have offered the bor- resenting the state before she cosm of the [economic] in- cluding Sens. Kirsten Gilli- 1939, according to legal claims and influential art-dealing clan ough’s residents and officials a joined President Barack equality he is talking about.” brand and Charles Schumer, by his grandson, Philippe Mae- that has been fending off Mr. chance to push local issues. Obama’s administration as Mr. Sanders held a rally last who lives in Brooklyn. Still, stracci, that are now being Maestracci’s claims for years— With Mrs. Clinton’s national secretary of state. week outside his childhood Please see RACE page A18 pursued by Mr. Stettiner’s es- and is controlled by billionaire campaign based in Brooklyn Brooklyn residents “know home. “These were rent-con- tate. art collector David Nahmad. Heights, and Mr. Sanders’s she has their backs,” said Har- trolled apartments” during his Sanders heads to conference Mr. Maestracci’s initial ef- Mr. Nahmad confirmed state headquarters in Gow- rell Kirstein, a spokesman for upbringing, he said, a nod to- at Vatican after debate...... A4 forts to recover the painting those details on Wednesday. anus, there has been plenty of Mrs. Clinton, pointing to legis- ward the rising rents that have Brooklyn Navy Yard gets were hampered by difficulty in He said the entity was set opportunity for neighbor-on- lation she backed that pro- bedeviled swaths of the city. another star turn...... A18 determining who held the Please see ART page A25

Weather Stacking Up Housing Real Feel TODAY’S56° 9 a.m. HIGH 42° 5 p.m. 58° On Upper West Side Record High BY JOSH BARBANEL ity lines, as well as design ele- 85° (1941) ments like terra-cotta cladding SUNNY, Sunrise/Sunset Could New York’s perennial intended to echo the stately NICE 6:18 a.m./7:35 p.m. housing shortage be eased by prewar apartments lining simply stacking new buildings West End Avenue. Residents of Friday’s High on top of old ones? the two structures will have 59° That is what a group of ten- different addresses but will ants at 711 West End Ave. are share a lobby and amenities, considering, some with horror, such as a new garden, a space for their 1950s- for recitals and readings and N.Y. Sports Lineup SPACES era red-brick music-practice rooms. building spanning The plans generated sub- 7:07 p.m. West 94th and stantial opposition from ten- Thursday 95th streets. Above it, a nine- ants, neighbors and local Yankees story condominium is to be set elected officials, including City @ Blue Jays on a concrete platform, sup- Council member Helen Rosen- ported by 17 steel columns em- thal, resulting in unusually ex- bedded in rock outside the ex- tensive design and engineering 8 p.m. Thursday isting, six-story building’s walls. reviews, including a peer re- Islanders When completed, the two view by a second engineering @ Panthers buildings will be connected by consultant, typically required

a shaft containing an elevator only of the tallest skyscrapers. PBDW ARCHITECTS For N.Y. sports coverage, see A26 bank, two staircases and util- PleaseturntopageA20 A rendering of 711 West End Ave., where developers plan to add nine stories to the existing structure. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A18 | Thursday, April 14, 2016 **** THE WALL STREET JOURNAL. CITY NEWS RALPH GARDNER JR./THE WALL STREET JOURNAL (2)

have a lot of friends here,” LMDC awarded the organiza- she explained. “You have to tion $1.1 million. go to a place where you’re “Nowhere else would we welcome.” feel like family,” said Wai Lan And did I mention the Ex- Lee, Deborah’s mother, who cel programs? They provide goes by Michelle. She was children and adults with spe- speaking in Chinese as Eva cial needs with everything Wong, the Houston Street Swimming lessons at University Settlement’s Houston Street Center. At right, volunteers Judy Sarmento, standing, and Deborah Lee. from art and cooking to com- Center’s director of programs puter-skills classes. and engagement, translated. Deborah Lee, 29, is among The family lives in the them. neighborhood and Deborah Community Spirit Lives in the Bowery Indeed, Ms. Lee who takes and her mother can walk to hip hop dancing classes—in the building. While Deborah A fort in Indian country ter’s conference room. It was Lower East Side. The Hous- plained as neighborhood res- addition to drama, sewing, was taking those hip hop was the analogy that came to blocked by a new condo-ho- ton Street Center, celebrating idents ran on treadmills that and the ancient Chinese classes her mother was mind as I sat in a conference tel rising next door. “This its 10th anniversary, is a few overlooked the pool. breathing technique of Qi learning how to swim. room at University Settle- was our only daylight.” blocks from the group’s The two groups even di- Gong—recently testified be- Though she said she can’t ment’s Houston Street Center It wouldn’t be quite accu- headquarters on Eldridge vide the pool. “The Y has a fore the Lower Manhattan float. So I don’t know how on the Bowery and listened rate to describe University Street. And were further certain amount of lanes and Development Corporation in that works. to Melissa Settlement, one of the city’s proof required of the forces we have a certain amount of an effort to help secure fund- “We really need this Aase, the or- oldest and largest social-ser- of change, it shares the lanes,” she said. “In the sum- ing for University Settle- place,” she said. ganization’s vice providers, as a bulwark ground floor of the apart- mertime you have to reserve ment. Ms. Aase grew passionate executive di- against the forces of gentrifi- ment building where it’s lo- two weeks in advance. There while discussing the sym- rector, dis- cation. Rather, it’s a place cated with a Whole Foods. are so many people who A gym and pool are bolic importance of losing cussing the where every element of the “We know a little bit want to swim.” that conference-room view. URBAN onslaught of community—from wealthy, to about the neighborhood,” But the gym and pool only a fraction of “This is the kind of space GARDNER gentrifica- middle class, to poor, many Ms. Aase explained. “We just constitute only a fraction of the Houston Street that brings people together RALPH tion. of them immigrants—can turned 130. We’ve seen so the Houston Street Center’s and creates a sense of be- GARDNER JR. Though congregate. many changes.” offerings. They include fam- Center’s offerings. longing,” she said of Univer- “gilding” “It’s accessible to the The community spirit is ily yoga, English conversa- sity Settlement. “When peo- maybea whole community,” Ms. Aase on display nowhere as much tion, housing assistance, job ple are pushed out of their more apt description for the said, referring to the Hous- as in the gym and swimming training, drama courses, “Before I wrote down neighborhood and feel dis- luxury transformation of a ton Street Center. “It makes pool that the Houston Street child care, knitting, and some notes,” she recalled of placed you’re pushing back neighborhood once known as the place a much richer Center shares with the Chi- zumba. There’s also free af- her appearance. “It was a against all those things.” the city’s Skid Row. place, vibrant and inclusive.” natown YMCA. On a recent ter-school and summer pro- very nice experience. I went She nodded in the direc- “We used to be able to University Settlement afternoon, it was a beehive grams for middle schoolers. with my mom and other par- tion of the swimming pool. see the sky from here,” Ms. started in 1886 as a haven of activity. Judy Sarmento, 78 years ents and friends. I spoke in a “And having fun.” Aase lamented as she looked for the flood of impoverished “It’s a 50/50 partnership old, comes from Jackson microphone.” out the window of the cen- immigrants arriving on the with the ‘Y’,” Ms. Aase ex- Heights three days a week. “I The effort paid off. The [email protected]

community, I think there could RACE potentially be this feeling of us and them,” Ms. Becker said. That is indeed the feeling ContinuedfrompageA17 just a few blocks away at an- Mr. Sanders has gained some other shop, Rocco and Jezebel elected-official support. for Pets, a shop Mrs. Clinton City Councilman Rafael Es- hasn’t visited. Politicians “are pinal, a Brooklyn Democrat, is so out of touch,” said store backing Mr. Sanders, saying owner Andrea Demetropoulos, the candidate “gets the prob- who is undecided. lems” that his district’s lower- Mr. Adams, the borough income people face, and is president, said he is disap- “speaking to my constituents.” pointed in both Mrs. Clinton At a clothing store near and Mr. Sanders. Mrs. Clinton’s headquarters, “I need candidates who are Kristin Becker, a volunteer at not afraid to walk through the the shop, said she is backing Tilden projects,” he said, refer- Mrs. Clinton, who bought a ring to a public-housing devel- gift for her granddaughter at opment in Brownsville where the store last year. neither has campaigned. “If she hadn’t taken a mo- —Zolan Kanno-Youngs ment to come down into the contributed to this article. L-R: BETH HARPAZ/ASSOCIATED PRESS; MARK LENNIHAN/ASSOCIATED PRESS Bernie Sanders’s state headquarters in Gowanus. Right, the Brooklyn Heights building where Hillary Clinton’s national campaign is based.

Democratic Presidential Debate Puts Spotlight on Brooklyn Navy Yard Custom Interior Protection For Whatever You Drive The Democratic presidential his successor, Bill de Blasio. tional spotlight,” said David Eh- his dream,” she said. 630-769-1500 • 800-441-6287 debate on Thursday will mark Thursday night’s debate be- renberg, president of the Ms. Lovci said the space another star turn for Brook- tween Democratic candidates Brooklyn Navy Yard Develop- was sought by CNN, which is www.WeatherTech.com lyn’s Navy Yard, a former U.S. Hillary Clinton and Bernie ment Corp., which manages the co-hosting the debate that is military shipyard that is now Sanders is scheduled to take yard for the city. scheduled to begin at 9 p.m. home to hundreds of busi- place at an event space within The Navy Yard is undergo- The event location has nesses and the occasional fash- the Navy Yard called Duggal ing its largest expansion to drawn some criticism from ion event. Greenhouse. date, and officials hope the de- Brooklyn Borough President The refurbishment of the The three-year-old venue velopments will bring a surge Eric Adams, who said the de- Navy Yard—a 300-acre indus- has previously hosted some of jobs. bate should be held somewhere trial park with more than 4 high-wattage gatherings, in- Mary Lovci, vice president of that will put the spotlight on million square feet of leasable cluding Lady Gaga’s album re- Duggal Greenhouse, said the poverty in New York City. space on the waterfront be- lease party with artist Jeff debate is a “unique, special oc- “The Brooklyn Navy Yard is tween the Williamsburg and Koons, an Alexander Wang casion” for the space. a success story,” Mr. Adams Manhattan bridges—was a pri- fashion show and rehearsals Owned by 80-year-old said. “We can’t continue to ority under former New York for pop star Beyoncé. Baldev Duggal, the founder of stay in the environments of City Mayor Michael Bloomberg. “I think it’s a great time for a global graphics business, success stories.” Efforts have continued under us to have the local and na- “this space was his vision and —Mike Vilensky

Mr. de Blasio should take a cer- decessors. with Mr. Oddo on the matter. MAYOR tain position, and they require “Their approach has its vir- “I don’t think this is an ad- Laser Measured wide approval before getting to tue and its vices,” Mr. Torres ministration that does a lot of ™ his desk. said of the de Blasio team. “I things well at once,” he said. FloorLiner ContinuedfrompageA17 One memo on flight rules think with NYCHA, it has “They are laser-focused on chosen candidate, according to for helicopters had at least mainly been virtues. But I what they care about. It’s a a December 2014 memo re- nine rounds of revisions, and it don’t know if the operations good thing sometimes, but it’s viewed by The Wall Street took more than a year for a fi- are any better in this adminis- a bad thing when there are Journal. The mayor’s office nal copy to get approved, ac- tration.” other things in the queue.” “Factory Direct” Thousands of American made, said the measure was intended cording to people who viewed Mr. Oddo has applauded custom applications in stock! to promote diversity. it. Several others took at least some of the decision-making 99.9% shipped within 48 hours “While there may be in- five months, according to city coming from city agencies and We Want to Hear stances where taking this addi- officials. Some were lost in the said he sometimes scored From You See our full line of Automotive Accessories tional time may feel like it ex- process. Mr. de Blasio said the quick attention from City Hall. Have something to say about For US Customers : tracts a toll on short-term memos forced people to com- But he also said a big eco- an article in Greater New WeatherTech.com productivity, it is the view of municate more. nomic-development project re- York? Email us, along with For Canadian Customers : this Administration that the Councilman Ritchie Torres, cently dropped through the your contact information, at WeatherTech.ca long-term benefits outweigh a Bronx Democrat who heads cracks on Staten Island “be- [email protected]. Your letter the cost,” the memo says. the council’s public-housing cause they let the months go could be published in our For European Customers : Mr. de Blasio’s administra- committee, said Mr. de Blasio by and never said no, but they weekly Feedback column on WeatherTechEurope.com Made in America tion has used decision memos was far more involved in the never said yes.” Friday. Letters will be edited ©2014 by MacNeil IP LLC more than 80 times, say aides day-to-day affairs at the New Eventually, developers chose for brevity and clarity. Please in City Hall. Decision memos York City Housing Authority to go elsewhere, he said. The include your city and state. are documents explaining why than Mr. Bloomberg or his pre- mayor’s office said it worked For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ** Thursday, April 14, 2016 | A19 CITY NEWS Watchdog NYPD Transfers Head Quits Top Commander Amid Suit To Desk Duty BY PERVAIZ SHALLWANI The chairman of the agency BY PERVAIZ SHALLWANI administrative duty as part of that investigates civilian com- AND MARA GAY a federal investigation that has plaints against the New York led to roughly two dozen Police Department resigned The New York Police De- members of the department Wednesday, hours after it partment transferred a top being interviewed by federal emerged that he is the subject Manhattan commander to desk investigators, people familiar of a civil lawsuit filed by the duty Wednesday, making him with the matter have said. agency’s executive director. the latest member of the po- The federal investigation is Richard Emery said he de- lice force to be disciplined as also focused on Mayor Bill de cided to resign after a “lengthy part of a federal corruption Blasio’s fundraising operation, substantive discussion” with probe that has focused in part and whether his donors have Mayor Bill de Blasio, according on allegations that NYPD offi- benefited from favorable to a statement he sent to the cials received gifts in exchange treatment from his adminis- mayor’s office around 4 p.m. for perks. tration, people familiar with Wednesday. Police Commissioner Wil- thematterhavesaid. “He and I agree that the con- liam Bratton announced that Hours after the discipline of fluence of recent circumstances Deputy Chief Andrew Capul, Chief Capul was announced, will preclude me from further the executive officer of patrol Mr. de Blasio said he had fulfilling my goals” as chairman in the Manhattan North patrol asked a lawyer to contact the of the Civilian Complaint Re- division, was transferred from U.S. attorney’s office to offer view Board, Mr. Emery wrote. his post as part of a joint in- his full cooperation on behalf Mr. Emery, a prominent civil- vestigation under way by the of his 2013 campaign. That at- rights lawyer in the city, was NYPD, Federal Bureau of In- torney, Barry Berke, said he appointed by Mr. de Blasio and

vestigation and U.S. attorney’s was retained Tuesday. STEVE REMICH FOR THEhas WALL STREET JOURNAL (2) been credited with bringing office in Manhattan. “He reached out at my re- IN COURT: Attorneys for Peter Liang, right, questioned juror Michael Vargas, in glasses, at a hearing needed changes to the organi- quest and simply said we’d like Wednesday where the defense sought to have Mr. Liang’s manslaughter conviction overturned. zation, including reducing the Five other NYPD to be helpful,” the mayor said. times it takes to review cases Along with Chief Capul, the But Justice Danny Chun post- NEW YORK CITY and holding meetings in eve- members have been NYPD has moved deputy chiefs Greater poned the sentencing until next Arbitrator Rules nings and outside of Manhattan. transferred to David Colon and Eric Rodri- Tuesday as defense attorneys “Over the past two years, the guez to administrative roles. argued that Mr. Liang should get For Former Principal CCRB has resolved cases much administrative duty. Deputy Chief Michael Har- New York a new trial because a juror, 62- An arbitrator has dismissed more quickly and efficiently, rington and Deputy Inspector year-old Michael Vargas, had lied the city Department of Educa- and I am thankful to Richard James Grant have been placed Watch during jury selection about his tion’s charges against former and the entire CCRB staff,” Mr. Chief Capul was reassigned on modified duty and relieved father’s criminal background. Dewey High School Principal de Blasio said. The mayor said to an administrative position of their badges and guns until Mr. Vargas also shared nu- Kathleen Elvin, who was re- CCRB board member Deborah pending further review of the the probe is complete. merous antipolice posts on Face- moved from her Brooklyn post N. Archer has agreed to serve allegations against him, Mr. An attorney for Inspector book, a lawyer for Mr. Liang said last year after being accused of as acting chair of the CCRB, ef- Bratton said. Grant has said his client de- NEW YORK CITY at Wednesday’s hearing. letting students graduate with- fective immediately. The police commissioner nies the allegations against A spokesman for the Brook- out having sufficient instruction. Mr. Emery’s resignation didn’t provide details of the him. The other three top offi- Sentencing Delayed lyn district attorney’s office said The department said a “credit comes hours after reports that allegations. cials haven’t commented. In Ex-Officer’s Case Mr. Liang “received a fair trial recovery” program she ran in he was being sued by his execu- Roy Richter, head of the The NYPD has also placed A Brooklyn judge on Wednes- and we will address the motion 2013-14 for students who were tive director, Mina Malik, for al- union that represents Chief Michael Milici, a detective day delayed the sentencing of a in court.” behind didn’t meet standards. legedly retaliating against her Capul, said the chief has fully working in the community af- former New York Police Depart- Questioned by a defense law- The arbitrator said the depart- and another female attorney by cooperated with the federal fairs division in Brooklyn’s ment officer convicted of man- yer Wednesday, Mr. Vargas said ment’s later decision to validate using a derogatory remark. probe. “I look forward to the Borough Park neighborhood, slaughter as the defense argued he didn’t mention his father be- those course credits undermined “We are pleased that filing end of the federal investiga- on administrative leave. A per- the verdict should be thrown out cause the judge had asked about its case. this lawsuit had such a quick tion which prevents an appro- son familiar with the investi- due to juror misconduct. the criminal past of close family, Ernest Logan, head of the city and positive impact,” Douglas priate defense of our police gation said the decision was The former officer, 28-year- and he didn’t consider his father principals union, said the disciplin- Wigdor, Ms. Malik’s attorney, commanders’ hard earned made after the detective re- old Peter Liang, was convicted in to be close. He said he didn’t re- ary charges showed the depart- said in a statement. good reputation,” said Mr. fused to speak with federal in- the November 2014 shooting member what he posted on ment’s “pattern of bullying and Reached by phone, Mr. Em- Richter, president of the Cap- vestigators, which is a viola- death of Akai Gurley, who was Facebook two years ago. railroading of great employees.” ery declined to comment be- tains Endowment Association. tion of department policy. unarmed, in the stairwell of a The hearing continues Thurs- A department spokeswoman yond the statement he sent to Chief Capul is the fifth high- An attorney for Detective Brooklyn public-housing building. day, when prosecutors are ex- called the ruling disappointing and the mayor. ranking commander and sixth Milici hasn’t responded to re- Mr. Liang had been scheduled to pected to question Mr. Vargas. said it would review its options. —Mara Gay NYPD member, to be placed on quests for comment. be sentenced Thursday. —Corinne Ramey —Leslie Brody contributed to this article. e oo,rlgo,sx adcp aiilsau rntoa origin. national or status familial handicap, sex, the religion, and color, letter ra ce, the of to because pledged housing are obtaining We to 15-0075. barriers CD# no No. throughou File are Sponsor, opportunity there the housing which from equal in available of program Plan achievement Offering the for an policy in U.S. are of terms offering Property complete 610 Lexington The and de Sponsor, Plan. floor. Offering approxim to specifications floor are to material from dimensions variations changes make All minor Not to floor. contain right representative. and sales Sponsor’s the unit your to on with depending check are subject vary Please and will and approximate design and are interior shown Views scale planned the reflect renderings Artist By appointment only

T: 212 913 9082 100E53.com

RFR,Owner/Developer Vanke, Owner Foster + Partners, Architecture William T. Georgis, Interior Design Hines, Co-Developer At Compass,Sales&Marketing Home Classic Marketing, Sales & Marketing t n ujc ocntuto aine.Pas aot n iesosm dimensions and layouts Plans, variances. construction to subject and ate h ain eecuaeadspota fimtv detsn n market and advertising affirmative an support and encourage We nation. the t With l eiecscnantesm aeilseiiain,fnse and applian finishes specifications, material same the contain residences all L,rsre ih omk hne nacrac ihtetrso the of terms the with accordance in changes make to right reserves LLC, Modernism

Following in the lineage of New York City’s greatest modernist buildings, One Hundred East Fifty Third Street brings state-of-the-art living to the Midtown Cultural District. Extensive amenitiesincludea60ftsunlit swimming pool, multi-level wellness facility, and concierge services by Quintessentially Lifestyle. Alcove loft to three-bedroom full-floor residences available, starting around $3 million. ay sign. ing ces. spirit Occupancy Spring 2017. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A20 | Thursday, April 14, 2016 ** THE WALL STREET JOURNAL. SPACES THURSDAY

Building on Air How to build a nine-story condo on top of a six-story rental.

4 Exterior walls, with windows already installed, will be built offsite and raised into place to speed construction and contain dust and noise. Once they are in place, the apartment interiors will be finished. Brick, metal and terra-cotta details were designed to echo prewar buildings on West End Avenue.

3 A concrete platform will be poured on top of the steel structure. Then load-bearing interior walls will be hoisted into place, serving as bases for the pouring of each of the floors above. T-B: PBDW ARCHITECTS; ANDREW LAMBERSON FOR THE WALL STREET JOURNAL The current building at 711 West End Ave., below. The proposed addition, above, will have views of Riverside Park and the Hudson River.

2 The new building will Building Up to Ease Housing Shortage sit on top of 17 columns that will be anchored outside the perimeter of ContinuedfrompageA17 “Because of the peculiar the existing building. Stephanie Cooper, a co- nature of New York real es- leader of a tenant group op- tate and the cost of land, posed to the new tower, these opportunities do pres- 1 The existing six-story worries that if the project ent themselves from time to building opened in 1952 proceeds, it could endanger time,” said Ray H. Dovell, the and will continue to be the more than 130 rent-regu- lead architect and a principal operated as rentals by the family that owns it. It lated tenants who will con- at PBDW Architects. is shown topped by two tinue living in the existing In a rare arrangement for protective layers that will building and set a precedent a condo development, the be installed as construction of the new for local real-estate projects. Miller family, which has W. 94th St. “New York City is filled owned the existing building building begins. West End Ave. with low rise buildings over since the 1960s, will con- which construction like this tinue to own and operate it possible, if this works,” she as a rental building. They Not shown: A line of studio apartments in the northwest corner of the existing said. sold air rights allowing for building will be replaced by an elevator bank, two staircases and a shaft for utilities. But the plans have passed the new condo, in exchange Source: PBDW Architects THE WALL STREET JOURNAL. the review, a Department of for equity in the project, Buildings official said. Once said Aloysius Lawn, a lawyer Riverside Park, along with The Haswell isn’t the first an audit, triggered by com- were tenants living on the the school year ends at P.S. for the family. Eventually Central Park and other New effort to build a market-rate plaints from tenants in the site. The developers said it 75 across the street, and the they plan to exchange their York institutions. It will have building on top of an exist- building. Eventually the de- was clerical error. department’s enforcement- equity for units in the condo 64 condos, including rear- ing structure housing rent- velopers gave up and in The practice rooms that safety team conducts a final that they will also rent out. facing apartments with bal- regulated tenants. 2008 sold the building. are part of the new ameni- review of “site safety logis- Mr. Lawn said that sev- conies that overlook River- In 2005, a group of inves- Meanwhile, Ms. Cooper ties were included for the tics,” construction is ex- eral family members live in side Park. tors, led by developer Kent said that 65 households have building’s musician resi- pected to begin. apartments in the existing Mr. Boardman said he Swig, purchased two six- joined the tenant group, and dents, many of whom were The developers of the building and had checked came across the building story rental buildings on it continues to fight the new recommended to the Millers new project, Paul Boardman the construction plans to while walking a new puppy Amsterdam Avenue near development. It submitted a by a talent agent who lived of P2B Ventures and Steven make sure residents on the West Side a few years West 92nd Street and devel- series of critical reports to in the building. Last week, J. Pozycki of SJP Properties, wouldn’t be endangered. ago. The idea to build on top oped plans to put up a nine- the Department of Buildings, Ms. Cooper’s tenant group see it as a way of easing the The new building is to be of it came as he was looking story condominium on top. leading to city violations for held a benefit concert, fea- city’s housing shortage, called the Haswell, for An- for a way to “adaptively re- After giving preliminary filing “material false state- turing three pianists who adapting sites in a way that drew Haswell Green, a 19th- use” it, he said, adding to its approval to the project, how- ments” because the new live there, to raise money in could improve the lives of century civic leader who capacity while maintaining ever, the Department of building permits didn’t the fight against the new existing tenants. oversaw planning for nearby “the existing fabric.” Buildings withdrew it after check a box saying there structure.

ADVERTISEMENT Tri-State Luxury Properties To advertise: 800-366-3975 or WSJ.com/classifieds

BEEKMAN PLACE, NEW YORK CITY UPPER CARNEGIE HILL, NEW YORK CITY SOHO, NEW YORK CITY 12,000+SF MANSION One of Manhattan’s most opulent private homes, HIGH FLOOR BLISS AT ONE MUSEUM MILE. Light-filled haven with TRIPLE MINT HOME. Spacious 3 bedroom, 3.5 baths, home with the living/ easily adapts for Consulate or Institutional use. 8-floors with open river an unobstructed vista of Central Park. Features 2 spacious bedrooms, dining and library expanding to 57 feet; along with the open kitchen, it is views, 17 rooms, (10 bedrooms) 6 public rooms, 6 master suites, 11 baths, 2 meticulously appointed spa baths, stylish and modern living/entertaining perfect for entertaining. Sunny south and west views, unique 17-ft retractable 8 wood-burning fireplaces, catering kitchen, banquet room, library, family space, sleek open chef’s kitchen with premium stainless steel appliances, windows offer plenty of light, laundry room and excellent closets throughout. room, Solarium, offices, servant’s quarters, 2 terraces, wine cellar, elevator. black granite counters and a breakfast bar. Oversized picture windows and Full service 24hr DM condominium with concierge, pool, sauna, gym, steam Diplomatic parking. Near the United Nations. Web#14499250 beautiful wide white oak flooring. Full Service Condo with the finest amenities room and garage. Web#14099578 – fitness center, pool and landscaped terrace. Web#14512035 Priced at $10,900,000 Priced at $34,000,000 Priced at $2,250,000 HALSTEAD PROPERTY HALSTEAD PROPERTY HALSTEAD PROPERTY Dan Danielli Nora Ariffin Elaine B. Tross phone: 212.381.3325 email: [email protected] phone: 212.381.2249 email: [email protected] phone: 212.381.3322 email: [email protected]

WILLIAMSBURG, BROOKLYN GREENWICH VILLAGE, NEW YORK CITY GREENWICH VILLAGE, NEW YORK CITY MANHATTAN SKYLINE VIEWS. A townhouse-like home at over 2,400SF,this LUXURY AND LOCATION. Pristine 2 bedroom, 2.5 bath with a gracious entry STUNNING PREWAR CONDO W/TERRACE. Emery Roth designed, Bing & convertible 5 bedroom/4 bath duplex has been meticulously custom renovated foyer that leads to an ideal split & spacious layout. Well-proportioned living Bing constructed 3 bedroom in the most coveted GV location. Gracious foyer, and features bright river & Manhattan skyline views. The open kitchen has an / dining room overlooking a quintessential tree lined village block. Custom spacious living room, open north, east and west exposures. Open renovated oversized peninsula perfect for breakfast bar seating. This home also includes high-end kitchen, 10’+ ceilings, large windows and red-oak hardwood floors windowed kitchen, two fireplaces, three baths, and a sizeable planting terrace a private rooftop cabana – the perfect oasis to watch the boats drift by and throughout. The highly acclaimed Greenwich Lane offers every amenity one with romantic skyline views. 24-hour doorman condominium with concierge, amazing sunsets. Full service building in the heart of it all – short distance to could imagine! 24-hour doorman, resident manager, state of the art health club laundry and is pet friendly. Web#13435041 East River State Park, Bedford Avenue shopping dining and the L, J, M and Z with pool, massage rooms & golf simulator, to mention a few. Web#14472718 lines. Web#14393024 Priced at $3,999,999 Priced at $4,950,000 Priced at $5,895,000 HALSTEAD PROPERTY HALSTEAD PROPERTY HALSTEAD PROPERTY Jay K. Overbye Laurie Silverman Laurie Silverman & Michael DeRosa phone: 212.381.2247 email: [email protected] phone: 212.381.4262 email: [email protected] phone: 212.381.4262 or 212.381.2364 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ** Thursday, April 14, 2016 | A25 ARTS & ENTERTAINMENT Tribeca Festival: A scene from Alma Har’el’s documentary Films to Catch ‘LoveTrue’ The First Week BY STEVE DOLLAR and older selves. The doubles help explore eek one of the 2016 “how we cast ourselves and W Tribeca Film Festival other people in mythological is beginning in ear- stories,” said Ms. Har’el, who nest with screenings at a vari- often finds poetic visual com- ety of downtown venues. plement to those stories. “And There are 102 features in the then we have to realize who lineup, ranging from documen- they really are when we take tary to independent and for- the masks off.” eign-language films to all-star Hollywood attractions. Below, ‘Actor Martinez’ a look at some promising se- Filmmakers Nathan Silver lections. See tribecafilm.com/ and Mike Ott play themselves filmguide for screening times. as they produce a mock bio- graphical drama about aspir- ‘LoveTrue’ ing Denver actor Arthur Marti- Five years after her debut nez, a middle-aged computer film “Bombay Beach” won the repair manager who asked to

best feature documentary collaborate with the risk-tak- ALMA HAR’EL prize at the festival, Alma ing directors. He participates Har’el returns with an ambi- in unintentionally comic cast- a group of Brooklyn high- ers were crouching in corners ning choreographic marvel, ‘The Fixer’ tious new project that digs ing sessions for the roles of his school girls as they approach of teen bedrooms. “It is meant taken up by competitive teams Coastal northern California into the eternal mysteries of ex-wife and girlfriend, but adulthood. Director Jenny to be completely immersed as of high school children and, looks like heaven to Osman, an true romance. grows suspicious as the film- Gage turns up the volume, cap- much inside their heads as we sometimes, adults. Afghani exile played by the The documentary took her makers plot to “punch his but- turing three years of vulnera- can be,” said Mr. Betterton, This full-hearted documen- charismatic Iranian actor Dom- to New York, Hawaii and tons.” Mr. Martinez begins to ble, confessional and quite so- who sometimes felt awkward tary distills performances in inic Rains in this suspenseful Alaska, where she connected feels the joke may be on him phisticated girl talk. The as the only male. “There were Toronto and Brooklyn’s Bar- fish-out-of-water drama. Once with an array of star-crossed and fights back. The audience project began when Ms. Gage definitely moments when I was clays Center into one glorious an aide, or fixer, for Western lovers. can decide whether the film is and her cinematographer hus- the only one blushing in the spectacle, as the teams take war correspondents, he takes a They include a surfer dude a spoof or a psychodrama, ex- band, Tom Betterton, met sis- room.” their routines to new intensity low-level job as the local crime who becomes a single father, posing the emotional perils of ters Ginger and Dusty, who with the help of musicians reporter. But as he begins to the patriarch of a gospel-sing- indie filmmaking. were their neighbors in Clin- ‘Contemporary Color’ such as St. Vincent, Tune- make new friends in the eccen- ing family she met in Central ton Hill. In a series of concerts last Yards and Ad-Rock of the tric community, Osman may Park and a young stripper in ‘All This Panic’ “They had pink hair one summer, pop star David Byrne Beastie Boys. Directors Turner prove too eager for his own Fairbanks. As part of the film’s “People want to see you but week and green hair the next championed the overlooked and Bill Ross IV turn a vast good. Director Ian Olds, work- unusual process, Ms. Har’el they don’t want to hear what week,” Ms. Gage recalled. “I world of color guard, a one- arena into an intimate prism of ing with cinematographer also found nonprofessional ac- you have to say,” argues one became fascinated and asked if time military-drill tradition all-American dreams, as the Adam Newport-Berra, evokes a tors to also play versions of of the teenage subjects in this we could follow them around.” that has become a flag-twirl- adolescent participants pour natural paradise riddled with the subjects as their younger film, which tracks the lives of Soon enough, the filmmak- ing, rifle-tossing, saber-spin- out their emotions. snakes and snares.

ing in Geneva.” being moved and froze docu- In statements issued this tlement, of which it would re- from anyone,” Mr. Nahmad ART The Geneva public prosecu- mentation and records relat- week, representatives for IAC ceive a cut because it had said earlier this week. “I tor’s office said Monday that a ing to the work, which was and Mr. Nahmad said the off- financed the case. raised my hand at public auc- Modigliani was “sequestered also photographed. shore entity was used for pri- Mr. Palmer said Mondex tion in London in 1996.” ContinuedfrompageA17 late last week” at the Geneva He said the company had 10 vacy reasons, a common prac- does “our best to put together Mr. Nahmad said Mondex up “for discretion purposes” Freeport but declined to elab- days to appeal the order. tice at auction. They said the a case,” whether the firm’s cli- and the Stettiner estate’s legal when making sizable pur- orate further. Meanwhile, representatives painting wasn’t hidden and ents pay by the hour or on team were “trying to shift the chases at auction, adding: “Ev- for Mr. Stettiner’s estate said was also shown in Switzerland contingency. problem to who is the owner erybody in the art world Swiss authorities they had sent Mr. Nahmad and at the Royal Academy of “In this case it’s very clear of the painting today,” he said. knows we buy under IAC.” new documents that they plan Arts in London. that the painting was stolen “The discussion is not about Mr. Nahmad said the issue said a Modigliani to file in New York state court, They said the plaintiffs had property,” Mr. Palmer said, who the owner is today, but wasn’t relevant to the lawsuit was ‘sequestered which they say provide addi- yet to prove Mr. Stettiner had “which is the reason the Swiss about who was the owner dur- over the Modigliani, which he tional proof of the family’s owned the work and that government has sequestered ing the war.” said will turn on whether the late last week.’ ownership of the painting. Mondex was trying to use neg- the painting.” —Anna Russell in London plaintiffs can prove in court “We are hopeful that David ative publicity to force a set- “I did not steal the painting contributed to this article. that Mr. Stettiner owned the Nahmad will now agree that painting. Aaron Richard Golub, a law- the evidence is compelling and In that case, he said, “I am yer representing IAC and the conclusive and that he will re- ready to return it.” other defendants in the Modi- turn the painting to Mr. This week, Swiss authori- gliani lawsuit, said the painting Stettiner’s family,” said James ties said a criminal case had is “still at the Freeport, under Palmer of Mondex Corp., a To- been opened “relating to the the custody of my clients.” ronto firm that specializes in Panama Papers to investigate Mr. Golub said authorities recovering Nazi-looted art and links with a Modigliani paint- “blocked” the painting from is working with Mr. Mae- stracci and the estate on the CALENDAR DAY claim. Mr. Maestracci initially sued the Helly Nahmad Gallery in federal court in 2011, but with- MORE THAN A GAME drew an amended complaint over jurisdictional issues. In 2015, Mr. Maestracci filed a lawsuit in New York state court against IAC, David Nah- mad, his son, Hillel “Helly” Nahmad and the Helly Nahmad @ Gallery. It was amended in Novem- ber to make George Gowen, the New York administrator of Mr. Stettiner’s estate, the sole sunday, april 17 plaintiff in the case. The November filing alleged 1:05 p.m. that IAC was a “shell company” set up by the Nahmad family ALLGUESTSINATTENDANCE “to conceal and confuse their Presented by MasterCard® identities, and hide reve- nues…stemming from their art #THISISBASEBALL dealings.” While the painting had been shown at the New York and London galleries run by members of the Nahmad fam- SOTHEBY’S ily, lawyers for Mr. Nahmad and the New York gallery had The cover of a 2008 Sotheby’s catalogue features Amedeo said in court filings that IAC is Modigliani’s 1918 portrait, ‘Seated Man With a Cane.’ the sole owner of the work.

NOTICE OF SECURED PARTY’S PUBLIC SALE OF COLLATERAL UNDER UNIFORM COMMERCIAL CODE

PLEASE TAKE NOTICE that on Wednesday, April 20, 2016, at be FINAL and on an “AS-IS, WHERE IS” basis and will be made 10:00 A.M. local time, LMEZZ 250 W90 LLC (“Secured Party”), as WITHOUT REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, successor in interest to Ladder Capital Finance LLC, will offer for AS TO TITLE, QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR sale at a public auction, and sell to the highest “qualified bidder”, PURPOSE, POSSESSION, QUIET ENJOYMENT, OR ANY OTHER MATTER. at the front of the New York County Courthouse, 60 Centre Secured Party reserves the right to establish other reasonable Street, New York, New York 10007, under Section 9-610 of the bidding procedures and to require potential bidders to reasonably Uniform Commercial Code as enacted in the State of New York, all demonstrate their ability to perform and close on the acquisition of Secured Party’s right, title, and interest as a secured creditor of of the Collateral to the satisfaction of Secured Party. Secured Party AC NW Retail Investment LLC, a Delaware limited liability company reserves the right to credit bid at the auction. Secured Party also (“Debtor”), in 100% of the membership interests in Armstrong reserves the right to adjourn continue, or cancel the auction with- FORTICKETS:(877)469-9849OR(800)943-4327(TTY) New West Retail LLC, a Delaware limited liability company out further notice. Any parties interested in further information (“Issuer”), pledged to Secured Party by Debtor. The principal asset about the Collateral, becoming a “qualified bidder”, and/or the of Debtor is 100% of the limited liability company interests in the terms of the sale should contact Jonathan Cuticelli of Sheldon Issuer and certain related rights and property relating thereto Good & Company at (800) 516-0015 or jpcuticelli@sheldongood. (collectively, the “Collateral”). Secured Party is informed and com. Qualified bidders may obtain a confidentiality agreement by NOTICE:ForthesafetyofeveryGuest,allpersonsspecificallyconsenttoandaresubjecttometaldetectorandphysicalpat-down inspections prior to entry. Any item or property that could affect the safety of Yankee Stadium, its occupants or its property shall not be http://www.SheldonGood.com believes that Issuer owns certain real property and the improve- visiting . Any prospective bidder permitted into the Stadium. Any person that could affect the safety of the Stadium, its occupants or its property shall be denied entry. ments located at 250 West 90th Street, NY, NY. This sale will be must satisfy the requirements to be a “qualified bidder” by no All seat locations aresubject to availability. Game time, opponent,date and team rosters and lineups, including the Yankees’ roster and held to enforce the rights of Secured Party under (i) that certain later than 12:00 P.M.local time, on Tuesday, April 19, 2016. The sale lineup,aresubjecttochange.GametimeslistedasTBDaresubjecttodeterminationby,amongothers,MajorLeagueBaseballandits television partners. Purchasing a ticket to any promotional date does not guarantee that a Guest will receive the designated giveaway Mezzanine Loan Agreement dated as of July 20, 2015, and (ii) that will be conducted by Jonathan Cuticelli, Sheldon Good & Company, item. All giveaway items and event dates are subject to cancellation or change without further notice. Distribution of promotional items certain Pledge and Security Agreement dated as of July 20, 2015, a New York licensed auctioneer, license No. 1387302. will only be to eligible Guests in attendance and only while supplies last. each executed by Debtor in favor of Secured Party. The sale will For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A26 | Thursday, April 14, 2016 **** THE WALL STREET JOURNAL. SPORTS The Good, the Bad, the Knicks: a Season Review

Another 50-loss year tems. But considering how Grant thrived during the final won’t please anyone, month in spread pick-and-roll but optimism abounds situations, and how Anthony remains of the NBA’s most ef- BY CHRIS HERRING ficient players when coming off a screen, screen-and-rolls INDIANAPOLIS—The Knicks’ should play a bigger part in 2015-16 season, which ended the team’s offense. with a loss to the Indiana Pac- ers Tuesday night, was strange They didn’t exercise pa- for a handful of reasons. tience once they began win- From one angle, it might ning. Derek Fisher, who was appear that this season repre- fired in the middle of his sec- sented a step forward for the ond season, preached patience Knicks—they nearly doubled and process over results, but last season’s franchise-worst it seemed the team got prema- win total of 17. But considering Clockwise from right: turely caught up in the latter. how well the Knicks started— Kristaps Porzingis, Aside from axing a young they were in playoff conten- Jerian Grant and coach—Jackson cited a need to tion at 22-22 in late January Carmelo Anthony. “get some wins”—the Knicks before going off the rails, fir- tampered with a rebuilding ing coach Derek Fisher and fin- timeline in order to stay in a ishing 32-50—one has to re- playoff race they were never gard the end of the season as a going to win. Anthony came big disappointment. back too soon from an ankle Ultimately, the franchise’s injury, then immediately fifth 50-loss season in the past played enormous minutes, decade will satisfy no one. leading to knee trouble. Lance Where did this team go so Thomas’s January knee injury wrong? And where did it im- never fully healed, and he prove, if at all? Let’s take a ended up re-aggravating it in nuts-and-bolts look at the March. And Grant, perhaps the Knicks’ latest letdown. Knick most in need of season- ing, saw limited playing time, WHAT THEY DID RIGHT in part because interim coach They uncovered a potential Kurt Rambis said he preferred franchise player. The most wins over development, even important thing the Knicks did after the team was eliminated this past year was draft Kri- from playoff contention. staps Porzingis, the versatile 7- foot-3-inch forward who went (CLOCKWISE FROM TOP LEFT) ANDREW D. BERNSTEIN, JONATHAN DANIEL (GETTY IMAGES); TONY DEJAK/ASSOCIATED PRESS They failed to build a roster from being booed on draft accurate from 3-point range, emergence, some would like to the first time in his career. It’s not hard to figure out to match the NBA landscape. night to logging 21 double-dou- where he hit 33% of his shots. see the team trade 28-year-old The uptick coincided with a why: Their slow-footed start- The NBA has downshifted to bles in what will probably be a center Robin Lopez and fortify sharp decrease in shot at- ing backcourt wasn’t disrup- smaller, quicker lineups. But in- runner-up finish for Rookie of They protected the rim. a struggling backcourt. But the tempts—he took just over 18 a tive enough. The Knicks forced stead of signing more rangy, the Year honors. During their abysmal 2014-15 Knicks shouldn’t break up that game, the fewest since the just 927 turnovers this season, athletic guards and wing play- Porzingis, still just 20 years season, the Knicks appeared to duo yet, as it is one of their 2004-05 season. But his dip in the fewest by any team during ers, the Knicks filled out their old, can do a little of every- be fairly solid when it came to greatest assets. field-goal percentage also led an 82-game season since the roster with big men like Kyle thing—hit tough fadeaway protecting the paint, ranking to his lowest scoring average NBA began tracking the statis- O’Quinn and Kevin Seraphin. jumpers, pass the ball, put it ninth in the NBA in field-goal They convinced Carmelo (21.8) since 2004-05. tic in 1977-78, per Basketball- That left them without ade- on the floor, and protect the percentage defense inside of 3 Anthony to facilitate. The Reference. quate guard depth to relieve rim. His 14.3 points and 7.3 re- feet, according to Basketball- Knicks finished with another WHAT THEY DID WRONG On offense, only two someone like Arron Afflalo, who bounds a game were more Reference. But that was mis- bottom-10 offense, leading They didn’t find ways to Knicks—rookie guard Jerian played almost 35 minutes a than anyone could have ex- leading, since their opponents some to argue that they should play up-tempo. The Knicks Grant and swingman Derrick night, even when he couldn’t pected, but he still has plenty enjoyed the second-highest ditch Phil Jackson’s beloved opened the season with a Williams—could get to the throw the ball into an ocean. of work to do. The shoulder in- free-throw rate that season. triangle offense. But if the tri- blowout road win over Milwau- basket regularly. But their in- The Knicks didn’t know Por- jury that ended his season pre- This season, the Knicks angle accomplished anything, kee in which they logged 19 consistencies left them on the zingis would be ready to con- maturely robbed him of valu- were legitimately good at de- it made Carmelo Anthony a fast-break points. But the pace bench at times, making the tribute so much so soon. Now able minutes. Porzingis needs fending the rim, holding foes much more consistent distrib- was short-lived, and the Knicks team’s lack of paint penetra- it’s clear the team would be to put on weight so he can to just 58.8% inside of 3 feet, utor of the ball. quickly reverted, becoming the tion glaringly obvious. better off finding an extra power through beefier defend- tied for the NBA’s second-best Anthony averaged more NBA’s lowest-scoring team in The triangle doesn’t use as guard or two rather than keep- ers, and he needs to be more mark. As a result of Porzingis’s than four assists a game for fast-break scenarios. many screens as other sys- ing all their big men. Toothless Mets Nibble a Win BY ANDREW BEATON win the title. The 1969 Mets, for one, were 3-5 through eight No Running The Mets’ third victory of games. In all, 18 of 111 World Here’s a look at how many runs World the season, a 2-1 win over the Series winners (16.2%) started Series-winning teams have scored in Miami Marlins on Wednesday, the season 3-5 or worse. their first eight games of that season. came in their eighth game. If What would really put the (The Mets have scored 20.) the season were a marathon, Mets in rarefied company if RUNS TEAMS MOST RECENT the Mets would have run less they do win it all is their of- 20 or fewer 4 1985 Royals than 1.3 miles so fense thus far—or lack thereof. 21 to 30 22 2011 Cardinals MIA 1 far. The Mets’ two runs Wednes- 31 to 40 NYM 2 Still, after losing day, both of which came on an 42 2008 Phillies four straight, man- RBI single by backup catcher 41 to 50 24 2014 Giants ager Terry Collins Kevin Plawecki in the seventh, 51 or more 19 2015 Royals treated this April 13 matinee gave them 20 through eight Source: Stats, LLC The Wall Street Journal. like a sprint to the finish, us- games. Only four teams in his- ing closer Jeurys Familia, who tory have gone on to win the had pitched two consecutive World Series after scoring 20 started 4-4 and finished 99-63.

days before Wednesday, for a runs or fewer after eight games. There’s no single Met to ELSA/GETTY IMAGES five-out save. World Series winners have blame for the team’s woes at Wilmer Flores pops up in the fourth inning of the Mets’ win. New York has scored 20 runs in eight games. “We had to win this game scored an average of 39.2 runs the dish—they’re hitting .194 to get ourselves back going in their first eight games, led as a team, and no individual slugging, roughly equivalent to taxed bullpen and Jacob de- “We know they’re going to again,” Collins said. “We’ve by the Yankees’ 75 in 1932. The player is hitting above .300. Noah Syndergaard’s OPS (.530) Grom missing his scheduled turn it around start putting got to show people we mean record for the fewest runs be- Some have struggled more in 2015. start with a lat injury. Logan some runs up on the board,” business here.” longs to the 1963 Dodgers, who than others: Curtis Granderson “We may not be hitting, Verrett filled in with six shut- Verrett said. “Today with the The Mets began the season scored 17 in eight games. That is hitting .097 and Travis d’Ar- that’s part of the game,” Col- out innings, duplicating the two runs, we’re lucky that was with World Series expecta- team, like this year’s Mets, re- naud .105. But the team has lins said. “We’ve still got out- brilliance of his first start last enough. It’s not going to be tions, and history has shown lied on a dominant pitching just 10 extra base-hits (eight standing pitching.” year when he allowed one run like that every game, for sure. that plenty of teams have re- staff that featured Sandy Kou- doubles, two home runs) thus That pitching kept them in in eight innings against the They’re going to start putting bounded from similar starts to fax and Don Drysdale. They far and a .535 on-base plus the game Wednesday despite a Colorado Rockies. fives and sixes up there.”

BMW of Oyster Bay

OysterBayBMW.com SHOW THE ROAD IT’S YOURS. 1-888-214-2716

New2016BMW New2015BMW 750i xDrive i8 Stk#B162451, technology & driving Stk#B152003, navi, sunrf, heated sts, asst pkg, navi, MP3, auto, MSRP $101,495 Bluetooth, MP3, auto, MSRP $148,295 per per $ mo $ mo 899 36 1229 36 mos mos $5995 Down Payment $5995 Down Payment $1500 Loyalty Credit $1500 Loyalty Credit $1000 Drive Event Credit $3000 Build Out Credit * $2465 Lease CashCredit 0.9% APR Financing Available on select new vehicles.

North Shore’s #1 Dealer in lasting customer satisfaction. BMW OF OYSTER BAY Expect the Exceptional

145 Pine Hollow Road, Oyster Bay, NY 11771 | 888.214.2716 | OysterBayBMW.com Sales Monday to Friday: 9am - 9pm • Saturday: 9am - 5pm • Sunday: 11am-4pm DMV# 7110066 Prices include all costs to a consumer except tax, tags & reg. Lease based on 36 mos for 10k mi/yr @ 30¢ each add’l mi. *Avail up to 72 mos on select new models. Due at signing=$5995 dwn pymt+1st mo pymt+$925 bank fee+$0 sec dep w/ approv credit+DMV+doc+tax. Ttl Pymts/Residual: i8=$44,244/$85,092; 750i=$32,364/$61,912. Special lease & finance offers subj to primary lender approval available at BMW of Oyster Bay thru BMW Financial Services. All credits offset MSRP. Credits may be combined with other offers unless otherwise stated. See dealer for details. Photos for illust purp only. Cannot combine offers. Exp 3 days from pub date. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com BUSINESSWSJ.D B4-B5 | CROSSWORD &B7 TECH. Verizon Workers Strike Drug Spending Hits After Tense Talks Fail Nearly $425 Billion LABOR | B5 PHARMACEUTICALS | B3

© 2016 Dow Jones & Company. All Rights Reserved. ** THE WALL STREET JOURNAL. Thursday, April 14, 2016 | B1 Senators Propose Encryption Rules

BY DAMIAN PALETTA use of technology that cannot of the covered entity.” data is too insecure and feel phones and other devices. be read for law enforcement or Congress has been facing strongly that consumers have A number of lawmakers, WASHINGTON—Two key national security purposes. pressure to craft a balance be- a right to seek solutions that have said they would oppose lawmakers Wednesday circu- The 10-page “discussion tween security and privacy protect their information— efforts to weaken encryption. lated a proposal that would re- draft” would require firms, when it comes to encryption, which involves strong encryp- But other legislators from quire companies to unlock en- when served with a court or- tion,” Mr. Burr said in a state- both parties, joined by many crypted technology when der, to provide “such informa- Plan would require ment. “I do not believe, law-enforcement officials, say served with a court order, a tion or data” or “provide tech- however, that those solutions Congress must intervene be- notable change in the law that nical assistance as is firms under court should be above the law.” cause of concerns that terror- could escalate the clash be- necessary to obtain such infor- order to help Apple declined to comment ists and other criminals use tween Silicon Valley and mation or data” when the gov- Wednesday about the sena- encryption tools to plan at- BEN STANSALL/AFP/GETTY IMAGES Washington. ernment is seeking to obtain retrieve phone data. tors’ proposal. tacks or conceal crimes. Exxon Mobil CEO Rex Tillerson Senate Intelligence Commit- encrypted material. The draft has a long way to Some industry leaders warn tee Chairman Richard Burr (R., A company would be re- go before becoming law, and that weakening encryption N.C.) and the panel’s vice chair- quired to assist the govern- while the courts have been its chances for adoption in the would make it easier for hack- man, Sen. Dianne Feinstein (D., ment if the data “has been grappling with the issue, most short term are slim. ers and foreign governments Pay Drops Calif.), are seeking input on pro- made unintelligible by a fea- prominently as a result of legal Many technology compa- to obtain consumers’ private posed legislation that attempts ture, product, or service battles between the Justice De- nies have opposed any re- messages or data. to address one of the thorniest owned, controlled, created, or partment and Apple Inc. over quirement that firms help cir- For Most security issues vexing policy provided by the covered entity defendants’ encrypted iPhones. cumvent encryption, which is Court says no warrant makers—how to deal with the or by a third party on behalf “I have long believed that now commonplace in smart- needed in cellphone case.... B2 Oil Chiefs As Stocks Tumble BY BRADLEY OLSON AND SARAH KENT

Most—but not all—top oil executives are seeing their pay shrink, after a plunge in crude prices that has erased $200 billion in stock-market value from the world’s largest pub- licly traded energy companies. Bob Dudley, BP PLC’s chief executive, enjoyed about a 20% bump in pay to $19.6 mil- lion in 2015, despite his com- pany’s $5.2 billion loss for the year and an accompanying stock-price decline of 11%. Many BP shareholders are incensed by the increase, and investor-advisory firms includ- ing Institutional Shareholder Services are counseling them not to ratify Mr. Dudley’s pay package at the company’s an- nual meeting Thursday. “This proposed increase is both unreasonable and insen- sitive,” said Ashley Hamilton Claxton, corporate-governance manager at Royal London As- set Management, which holds

MARTHA IRVINE/ASSOCIATED PRESS BP shares worth about $600 Farming startups, like BrightFarms and Gotham Greens, have sought to reshape agriculture. Gotham’s Jenn Frymark, at the company’s Chicago rooftop greenhouse. million. She plans to vote against Mr. Dudley’s pay. BP defended the pay pack- age. “Despite the very chal- Farming Startups Have Tough Row to Hoe lenging environment, BP’s safety and operating perfor- High-tech growers pulled the plug on a planned BrightFarms. farming startups have sought raised about $30 million, said mance was excellent through- greenhouse in Washington, The firm, which has raised to reshape agriculture by it currently sells more than out 2015, and management face challenges in bid D.C., 10 months into the pro- more than $25 million in eq- growing crops such as salad 20 million heads of lettuce also responded early and deci- to produce vegetables cess of getting permits, and uity and more than $15 mil- greens and herbs in or near and leafy greens a year to sively to the steep fall in the earlier exited an effort to de- lion in project financing, is big cities. restaurants, food-service oil price,” a company spokes- in cities year-round velop a rooftop farm in now focusing on greenhouse The idea is that urban companies and retailers such man said. Brooklyn, N.Y. FarmedHere farms in locations outside of farms promise year-round as Whole Foods Market Inc. Other executive pay pack- BY RUTH SIMON LLC, which operates a farm in urban centers. supplies of greens, with less The company, started in ages shrank along with stock a former box factory outside “You would scale very spoilage and lower transpor- 2009, operates four rooftop prices. Exxon Mobil Corp. re- A crop of startups has Chicago, shut down for six slowly, and waste investors’ tation costs than soil-raised greenhouses, including a leased data Wednesday that emerged in recent years to months last August to re- money,” Mr. Lightfoot said of produce from California or Queens, N.Y., facility that showed CEO Rex Tillerson’s grow vegetables on city roof- vamp its strategy. city projects. The cost for the Mexico. once housed Ideal Toy Co., a salary rose 6% to $3 million in tops or to turn old factories Building farms on city Washington, D.C., facility The undertaking is a far maker of teddy bears and Ru- 2015 even as the company’s into indoor farms. But their rooftops is “a foolish en- would have been nearly 20% cry from the community gar- bik’s Cubes. shares lost 15% of their value. quest for locally grown let- deavor” because of the higher more than an $8.5 million dens on once-vacant lots that High-tech indoor farming But Mr. Tillerson’s total pay tuce is running into challeng- costs and the additional time greenhouse it instead built in are typically associated with can involve millions of dollars fell 18% to $27.3 million, due ing business realities. for permitting, said Paul suburban Virginia, he added. urban farming. Gotham in investments and a sophis- to a lower bonus, stock awards BrightFarms Inc. last year Lightfoot, chief executive of Venture-backed for-profit Greens Farms LLC, which has Please see FARM page B6 Please see OIL page B2 Shoppers’ Move to Apps Changes Game for Retailers A continuing series on how $49.2 billion, doubling the app open in its stores. Fash- changes in shopping habits previous year’s growth, ac- ion retailer ModCloth Inc. are forcing big shifts across cording to comScore. Desktop suggests some products based retail and other industries. sales still dwarf mobile, on a customer’s location. reaching $256.1 billion last Amazon’s dominance on BY GREG BENSINGER year, but annual growth the Web extends to mobile, slowed to 8.1% from 12.5%. and the online retailer has the Hana Pugh, a 29-year-old The retailers that are suc- top-ranked app, according to event planner and new ceeding are training custom- Apple. Among the top-ranked mother, buys most of her ers to think of their smart- apps on both Apple and An- household items and baby phones like an all-day impulse droid devices are two, young goods online. aisle. Apps are able to capture mobile-centric marketplaces, HOW WE But she doesn’t data available on handsets and OfferUp Inc. and Context- SHOP use her com- push consumers to buy when Logic Inc.’s Wish, which last puter to shop. they have a spare moment. year were valued at $800 mil- Instead, Ms. But merchants say many lion and $3 billion, respec- Pugh taps away at her iPhone. shoppers on phones still shy tively, by investors. “It’s quicker to pull out my away from buying big-ticket “Mobile devices are driving phone and click ‘buy’ than to items such as sofas, prefer- demand,” said Andrew Lips- log on to my computer,” said ring larger photos, expanded man, a comScore vice presi- Ms. Pugh, of Bowie, Md., who reviews and product descrip- dent, who has studied mobile relies on Amazon.com Inc.’s tions, as well as price com- shopping. “They can create an app for essentials. parisons available on a desk- impulsive buying moment at Shopping on a small screen top computer. any point in the day because

used to be a pain. But as con- JASON REDMOND/AGENCE FRANCE-PRESSE/GETTY IMAGE And retailers have to be they are with you all the time, sumers spend more of their U.S. sales from mobile devices jumped 56% last year as retailers became savvier with app offerings. careful not to seem invasive. right in your pocket.” days glued to smartphones, Amazon’s shoe retailer, Selling merchandise on retailers are getting savvier of shopping promises to Instead of placing one big retailers call “snacking.” Zappos.com, is testing tech- smartphones still poses chal- with apps that ease browsing, transform the retail industry order from a computer, peo- Mobile sales are booming, nology that highlights differ- lenges. The ease of buying offer rewards, suggest the by creating new shopping ple increasingly are making especially compared with sales ent products based on a single items instead of build- right products and simplify habits, reshaping sales tac- smaller purchases in short gains from desktop computers. phone’s operating system. ing a shopping cart can drive the purchase to one click. tics and carving out winners bursts throughout the day on Last year, U.S. sales from Target Corp. pushes coupons up retailers’ shipping costs. The so-called appification and losers. their phones, a phenomenon mobile devices jumped 56% to to customers who have the Please see SHOP page B4 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B2 | Thursday, April 14, 2016 **** THE WALL STREET JOURNAL. INDEX TO BUSINESSES BUSINESS NEWS

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

A Exxon Mobil...... B1,B2 P OIL AeroFarms...... B6 F Patriot Coal...... A1 Airbus Group...... B5 Facebook...... B4 Peabody Energy...... A1 Alcoa...... C4 Philip Morris Continuedfromthepriorpage Fannie Mae...... C3 and interest-rate-related Alibaba Group...... B4 International...... B8 Faraday Future...... B5 changes in his pension. Alphabet...... B4 FarmedHere...... B1 R For the past five years, oil Alpha Natural Resources Ford Motor...... B7 Reiss Holdings...... B5 giants Exxon, Chevron Corp., ...... A1 Fosun Group...... C4 Royal Dutch Shell...... B2 Royal Dutch Shell PLC and BP Amazon.com...... D1 Freddie Mac...... C3 Royal London Asset have paid their top bosses Anbang Insurance Group Management...... B1 nearly $500 million in com- G bined compensation, even ...... C4 S General Motors...... B3 though the companies’ annual- Ant Financial Services Sidley Austin...... A6 Group...... B4 Giant Interactive Group ized returns for the period Starboard Value...... C2 have undershot those of the Apple...... B1 ...... C3 Starwood Hotels & S&P 500. Arch Coal...... A1 Godfrey Phillips India.B8 Resorts Worldwide...C4 In 2015, Chevron chief John Goldman Sachs Group C2 B State Street...... C2 Watson’s pay, including salary, GoPro...... B5 Baidu...... B4 bonus and stock options, rose Gotham Greens Farms T 3%, but with pension-benefit Bank of America...A2,C2 ...... B1 Tesco...... B5 changes his total compensa- Bank of New York Tesla Motors...... B5,B7 tion fell by 15% to about $22 Mellon...... C2 H Theranos...... A1 million. BlackRock...... C1 Hinduja Group...... C3 Most of Mr. Watson’s pay 21st Century Fox...... B4 BP...... B1 Horizon Pharma...... C2 rises and falls with share- BrightFarms...... B1 I V holder value, based on stock

British American GERALD HERBERT/ASSOCIATED PRESS prices, with added emphasis Institutional Valeant Pharmaceuticals Tobacco...... B8 Energy giant Exxon Mobil says it confirmed the risks of climate change and urged a carbon tax. on safety and other factors Shareholder Services International...... B8,C8 C Verizon Communications aligned with good corporate ...... B1 governance, said Kurt Glaub- ...... B5 Centerbridge Partners C8 ITC...... B8 itz, a company spokesman. Volkswagen...... B7 Chevron...... B2 J Exxon Fires Back in Court “Overall, Mr. Watson’s 2015 Chipotle Mexican GrillB2 VST Industries...... B8 compensation package recog- Jilin Chengcheng Group Chongqing New Century W nizes and reflects the value he ...... C3 Cruise...... C3 continues to deliver to Chev- Walgreens Boots J.P. Morgan Chase ron’s stockholders,” Mr. Glaub- Citigroup...... C1,C8 Alliance...... A6 Over U.S.’s Climate Probe ...... A1,C1,C2,C4,C8 ContextLogic...... B1 itz said. Walt Disney...... B4 Exxon Mobil Corp. went to badly damaged by lawsuits ac- pany has confirmed for more The salary and bonus of An- CtW Investment Group L Walter Energy...... A1 court Wednesday to challenge cusing them of hiding the than a decade that it sees the glo-Dutch Shell’s CEO, Ben van ...... B2 Level 3 Communications Warburg Pincus...... B5 a government investigation of truth about their products. risks of climate change, and Beurden, who is paid in euros, D-E ...... B5 Weifang Yaxing whether the company con- A key meeting in the new has publicly advocated for a fell 13% to $5.5 million when Chemical...... C3 Delphi Automotive.....B3 M spired to cover up its under- push unfolded in January be- carbon tax as the best way to translated into dollars. Wells Fargo...... A2,C1 standing of climate change, a hind closed doors at a Man- regulate carbon emissions. Mr. van Beurden’s overall Depomed...... C2 Meituan...... B4 Y sign the energy company is hattan office building. The ses- A key part of the activists’ pay for 2015, including pen- Dish Network...... B4 ModCloth...... B1 gearing up for a drawn-out le- sion brought together about a strategy is to seek documents sion changes, tumbled 81%. Emirates Airline...... B5 Morgan Stanley...... C2 Yelp...... B5 dozen people, including Kenny that show otherwise: that Shell’s profit for the year By Amy Harder, Bruno, a veteran of environ- Exxon, despite knowing the plunged 80%. Devlin Barrett mental campaigns, and Bill dangers of climate change, has “Shell’s executive compen- INDEX TO PEOPLE and Bradley Olson McKibben, founder of 350.org, sought to challenge the scien- sation reflects delivery of our two activists who helped lead tific consensus. Such revela- strategy, measured by both B Goel, Vishal...... C3 Parasrampuria, Adarsh gal battle with environmental- the successful fight to block tions would help “delegitimize short-term and long-term tar- Bahuguna, Anwiti...... C4 Green, Jason...... B6 ...... C3 ists and officials on the politi- the Keystone XL pipeline. [Exxon] as a political actor,” gets,” said Jonathan French, a The new campaign’s goals the January agenda said. Shell spokesman. “There is a Bailey, Andrew...... C3 Gruenberg, Martin...... C2 Peabody, Charles...... C2 cally charged issue. The company filed court include “to establish in pub- In a twist, the initiative is clear alignment between the Peng Jianhu...... C3 Balwani, Sunny...... A1 Gurewitz, Harold...... B2 papers in Texas seeking to lic’s mind that Exxon is a cor- set to be bankrolled partly by company’s performance and Brodsky, Mark...... A11 H Pötsch, Hans Dieter...B7 block a subpoena issued in rupt institution that has the heirs of John D. Rockefel- our compensation policies.” Burr, Richard...... B1 R March by the attorney general pushed humanity (and all cre- ler, the founder of Exxon’s Stockholders at Chevron, Hinduja, Ashok...... C3 C of the U.S. Virgin Islands, one ation) toward climate chaos forebear, Standard Oil. The Exxon and Shell will get to Hinduja, Gopichand.....C3 Roe, John...... B2 of several government officials and grave harm,” according to Rockefeller Family Fund has vote on executive pay next Cammarata, Barbara..A6 Hoenig, Thomas...... C2 Rosenberg, David...... B6 pursuing Exxon. Wednesday’s an agenda of the meeting signaled it will help fund the month—though the votes Carpenter, Timothy.....B2 I S filing argues that the sub- viewed by The Wall Street campaign through its existing aren’t binding. At those meet- Caspersen, Andrew W.W poena is an unwarranted fish- Journal. backing of 350.org, though it ings, the companies are ex- Ingle, Greg...... A6 Sanders, Timothy...... B2 ing expedition into Exxon’s in- hasn’t provided a figure. pected to outline their worst ...... C3 J Schorr, Glenn...... A2 ternal records that violates its Wednesday’s filing is first-quarter performances in Cassidy, Gerard...... A2 Wednesday’s filing Singer, Paul...... A11 constitutional rights. Exxon’s first legal salvo in decades, analysts say. Claxton, Ashley Jiang Bingbing...... C3 Slaughter, Louise...... A4 “The chilling effect of this is Exxon’s first legal what could be a long war, Including BP, the four big- Hamilton...... B1 K inquiry, which discriminates since at least four state attor- gest Western oil companies Stiles, Fiona...... D4 salvo in what could Corbat, Michael...... C2 based on viewpoint to target neys general have launched in- have laid off, or are in the pro- Kellow, Glenn...... A1 Storey, Jeff...... B5 Coster, Daniel one side of an ongoing policy be a long war. vestigations and a dozen oth- cess of shedding, more than Kethledge, Raymond..B2 Stranch, Jane debate, strikes at protected ers have signaled they might. 25,000 workers because of the ...... B5 L Branstetter...... B2 speech at the core of the First None has been as aggres- downturn in energy prices. D T Amendment,” the filing says. This new legal strategy sive as New York Attorney At the two dozen energy Lake, Marianne...... A2 Dimon, James...... A1 Exxon also dismisses the stems in part from environ- General Eric Schneiderman, companies in the S&P 500 in- Truesdell, Elly...... B6 notion that there is any sug- mentalists’ frustration at what who subpoenaed Exxon in No- dex, median pay, excluding Dugan, Regina...... B4 Laurell, Nate...... B6 gestion of a crime, saying At- they see as the inadequacy of vember seeking data about the pension changes, fell less than Lightfoot, Paul...... B1 V F torney General Claude Earl recent climate deals. Their company’s research on climate 1% from 2014 last year, accord- Li Keqiang...... C3 van Beurden, Ben...... B2 Feinstein, Dianne...... B1 Walker “issued the subpoena hope is to encourage state at- change over several decades. ing to an analysis by ISS Cor- M Viñals, José...... C4 without the reasonable suspi- torneys general and the U.S. Exxon hasn’t challenged that porate Solutions Inc. That’s far French, Jonathan...... B2 W cion required by law and Justice Department to launch subpoena, partly because a less than the cumulative 24% G McDermott, Tracey.....C3 based on an ulterior motive to investigations and lawsuits New York law called the Mar- price decline for those compa- Murphy, Kevin...... B2 Watson, John...... B2 Gelos, Gaston...... C1 silence those who express that ultimately will change tin Act gives Mr. Schneider- nies. Executive compensation P X views on climate change with Exxon’s behavior, force it to man wide latitude to investi- in other industries, except for Gijsels, Philippe...... C4 which they disagree.” pay big damages and drive gate businesses for possible retailing, increased last year. Glaubitz, Kurt...... B2 Panagariya, Arvind...... C3 Xiang Kaiquan...... C3 A request for comment to public attention to climate fraud or misrepresentation. In their annual filings, the the U.S. Virgin Islands’ attor- change. The new legal theory has biggest oil companies take ney general’s office wasn’t im- “It’s about helping the yet to gain momentum within pains to explain the complexi- mediately returned. larger public understand the the Justice Department, ac- ties of their senior executives’ In the subpoena, the U.S. urgencies of finding climate cording to officials familiar compensation, including per- Appeals Court Says Virgin Islands told Exxon it solutions,” said Lee Wasser- with internal discussions. But formance pay tied to the com- could be violating two state man, director of the Rockefel- after prodding by lawmakers, pany’s share price and options laws, by purportedly obtaining ler Family Fund, which hosted the Federal Bureau of Investi- that can take a decade to vest. No Warrant Needed money under false pretenses the January meeting. “It’s not gation is conducting a prelimi- Those incentives are paid out and conspiring to do so. really about Exxon.” nary review. over the long term, but they Both sides see this as a piv- Exxon and its supporters The issue also has seeped often get counted as part of For Caller’s Location otal moment in a growing dismiss the comparison with into the political arena. Demo- annual pay packages. BY JOE PALAZZOLO Stranch joined the ruling in campaign by environmental- tobacco. Cigarettes are a cratic presidential front-run- Compensation packages at part but was skeptical of ists to deploy a legal strategy harmful, addictive product ner Hillary Clinton has called many energy companies are Federal agents can obtain lumping location records to- used against tobacco compa- used by a portion of the pub- for an investigation of Exxon, built to work well in most cellphone records that reveal a gether with bank and credit nies in the 1990s by arguing lic, they say, while fossil fuels and Sen. Sheldon Whitehouse market conditions, but some caller’s location without a card records that law enforce- that oil companies have long are fundamental to the world (D., R.I.), pressed U.S. Attorney were never set up to manage warrant, a Cincinnati-based ment officers can retrieve hidden what they know about economy. General Loretta Lynch on the the impact of a crash in oil- federal appeals court said on from financial firms without a climate change. Tobacco firms’ In Wednesday’s filing, matter at a recent congressio- and-gas prices, said John Roe, Wednesday, in the latest ruling warrant. finances and credibility were Exxon’s lawyers say the com- nal hearing. head of advisory at ISS Corpo- to tackle the scope of privacy “This case involves tracking rate Solutions. protections for data transmit- physical location through cell “Sometimes, that produces ted by personal devices. towers and a personal phone, results that don’t pass the The records obtained by the a device routinely carried on Investor Group Pushes for Chipotle Shake-Up smell test,” he said. “When Federal Bureau of Investiga- the individual’s person,” she that happens, companies need tion from wireless carriers in wrote. to step back and make sure 2011 showed that two Detroit “I am not convinced that that they are more responsive men were near the scene of the situation before us can be and aligned with shareholders. several robberies at the time addressed appropriately with When they don’t, they will run they were committed. a test primarily used to obtain into issues year after year.” Timothy Carpenter and business records such as ISS hasn’t issued its recom- Timothy Sanders, who were credit card purchases,” she mendations on whether share- ultimately convicted of partici- added. holders should endorse or re- pation in nine armed robber- Harold Gurewitz, a lawyer ject pay packages at Exxon, ies, sought to exclude the re- for Mr. Carpenter, said he and Chevron and Shell, but says it cords, saying they were his client were considering will do so in coming weeks. protected by the Fourth their next move. They could One reason for discrepan- Amendment. ask the Sixth Circuit to rehear cies between executive pay A 2-1 panel of the Sixth U.S. the case or petition the U.S. and stock performance is that Circuit Court of Appeals ruled Supreme Court to review it. BP and other oil companies re- that location records created Until the high court steps ward executives based on rela- when a mobile phone connects in, Mr. Gurewitz said, “I think tive shareholder returns. That to a nearby cell tower were the issue is just going to be can blunt the impact of rising the equivalent of the writing unclear.” or falling oil prices because on the outside of an envelope, A spokeswoman for the U.S. payouts depend more on how rather than the letter inside. attorney’s office in Detroit, a company performs relative “Cell-site data—like mailing which prosecuted the case, de- to its peers, said Kevin Mur- addresses, phone numbers, clined to comment. phy, a professor at the Univer- and IP addresses—are infor- The ruling aligns the Sixth sity of Southern California’s

mation that facilitate personal Circuit with two other re- STEPHEN BRASHEAR/ASSOCIATED PRESS Marshall School of Business. communications, rather than gional appeals courts and Compared with the other part of the content of those means that law enforcement CtW Investment Group in a slaught of negative headlines, A Chipotle representative three major oil companies, BP communications themselves,” officers in Kentucky, Michigan, letter Wednesday urged Chipotle a federal criminal investigation wasn’t available for comment. shares fell the least in 2015, wrote Judge Raymond Keth- Ohio and Tennessee can obtain Mexican Grill Inc. shareholders and a nearly 40% share price The investor group asked dropping 11.7% including rein- ledge. a court order for location data to withhold support for the re- collapse since October has re- stockholders to withhold sup- vested dividends, according to “The government’s collec- by showing merely that the re- election of two directors at the minded us that balanced lead- port for incumbents Patrick data from Morningstar. That is tion of business records con- cords are relevant to an ongo- annual meeting in May, saying ership and independent board Flynn and Darlene Friedman, slightly ahead of Exxon’s 12.6% taining these data therefore is ing investigation. the chain is in need of “genuinely oversight are critical to sus- members of the company’s share-price decline. Chevron’s not a search,” the judge said. A warrant requires a show- independent oversight.” tainable, long-term value cre- compensation committee. stock fell 16% last year, while Judge Jane Branstetter ing of probable cause. “The last three quarters’ on- ation,” CtW said in the letter. —Anne Steele Shell’s was down 26% For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | B3 BUSINESS NEWS U.S.DrugSpendingClimbs EU-U.S. Privacy-Pact Changes Are Sought Growth rate slows, European Union privacy reg- U.S., lawyers say. Hanging in but remains at high ulators called for changes to a the balance are billions of dol- level, fueled by pricey new EU-U.S. privacy accord, lars in business, particularly in boosting the chances that the the online-advertising and new medications cloud-services sectors. By Sam Schechner “A battle in court is all but BY PETER LOFTUS in Paris assured,” said Eduardo Ustaran, and Natalia Drozdiak a privacy lawyer at Hogan Total spending on prescrip- in Brussels Lovells. “Organizations will tion drugs in the U.S. rose have to carry on doing global 12.2% to nearly $425 billion in deal will end up challenged in business without knowing if 2015, continuing a steep climb court and leaving thousands of they are breaking the law.” fueled by the introduction in companies that transfer per- Tech-industry groups on recent years of expensive new sonal information across the Wednesday acknowledged that drugs for cancer and infections, Atlantic in legal limbo. regulators had created a new as well as price hikes for older A body representing na- hurdle to plans by the Euro- drugs, according to a report. tional data-protection authori- pean Commission, the bloc’s ex- The spending growth rate de- ties in the EU’s 28 states said ecutive body, to finalize the celerated from the 14.2% rise in Wednesday that the trans-At- framework before summer. 2014, partly because of patent lantic deal, dubbed Privacy “[W]e hope that the expirations for certain drugs, Shield, should include clearer changes called for can be as-

but the growth was still well MAX WHITTAKER/PRIME FOR THE WALL STREET JOURNAL limits on how U.S. surveillance sessed speedily without signif- above the average for the past Harvoni, a Hepatitis C drug, shown above, was the nation’s top-selling drug last year. agencies conduct bulk collec- icantly delaying the implemen- decade, according to a research tion of personal information for tation of this much needed arm of IMS Health that pro- national security purposes to legal tool,” said Digital Europe, duces the annual report on Drug Spending Rises ensure that the accord con- which includes Apple Inc., Al- spending. The figures are based forms with EU privacy law. phabet Inc.’s Google and Mi- on pharmaceutical list prices. Spending on prescription The opinion by the group of crosoft Corp. Politicians, health-care pay- drugs in the U.S. $425B Spending on the top five prescription drugs in the U.S. for 2015 privacy regulators undermines Vera Jourová, the EU’s justice ▲ ers, doctors and patients have 12.2% the proposed data-transfer ac- commissioner, said the commis- $400 increasingly criticized drug Harvoni cord, which EU and U.S. offi- sion “will work to swiftly” in- Main use: Hepatitis C $14.3B pricing in the past year, saying With discounts cials rushed to create after the clude the regulators’ recommen- medicines are out of reach for EU’s top court last fall invali- dations before it approves the 300 Humira many patients and are strain- Rheumatoid Arthritis, $10.6 dated its predecessor because framework, but didn’t say how ing health-care budgets. psoriasis of concerns about mass sur- she and her colleagues would Drugmakers have defended veillance in the U.S. resolve questions about U.S. 200 Enbrel their pricing practices, in part Rheumatoid Arthritis, $6.6 While Wednesday’s non- surveillance guarantees. by pointing out that they offer psoriasis binding opinion doesn’t halt Companies have been rush- health-care bill payers rebates the EU process for approving ing to cope with the uncertain 100 Crestor $6.3 and other discounts off the list High cholesterol the newdata-transfer frame- legal environment. Some have price for drugs, though they work, the call for changes sug- been shifting data about Euro- keep confidential the specific gests that at least some EU peans to servers in Europe. 0 Lantus SoloStar size of price concessions. Insulin injection $5.8 regulators believe the deal Under pressure from Euro- The Pharmaceutical Re- 2005 ’10 ’15 doesn’t pass legal muster. That pean clients, companies includ- THE WALL STREET JOURNAL. search and Manufacturers of Source: IMS Health opens the possibility of en- ing Amazon.com Inc., and In- America, the industry lobbying forcement against companies ternational Business Machines group, said in a statement that count spending to inform the counts was 2.8%, IMS esti- price, or a fixed percentage of that use the framework if no Corp. have in recent years the IMS report confirms that debate over drug prices. mated. In 2014, the average the full price. “Patients are changes are made. launched services that allow drug costs are moderating IMS estimated that after re- list price increase for patented facing high costs,” Mr. Klein- “We believe there is still clients to keep data in a partic- “due to a competitive market- bates and other price breaks, brands was 14.3% versus net rock said. “It’s also true the work to do, and urge the com- ular region if they want. place for medicines where manufacturers received $309.5 price growth of 5.1%. manufacturers are not pocket- mission to resolve our con- Cloud-storage firm Box said large, powerful purchasers ne- billion for U.S. prescription Still, patient affordability ing all of” the higher costs. cerns,” said Isabelle Falque- it plans to launch a service that gotiate aggressively and ge- drugs last year, up 8.5% from remains an issue. The average Gilead Sciences Inc.’s hepati- Pierrotin, head of France’s will allow customers to keep neric utilization rates are 2014. The higher total spend- patient share of the cost for a tis C drug Harvoni was the top- data-protection authority and their data on servers located nearly 90%.” ing figure—$425 billion—is brand-name prescription filled selling drug in the U.S. in 2015 chairwoman of the pan-EU outside the U.S., including Ire- For the first time, the IMS based on the list prices that through a commercial health- with an estimated $14.3 billion group. land and Germany, to allow cli- report broke out the effect of pharmacies and hospital cus- insurance plan has increased in sales before discounts. Abb- Wednesday’s opinion leaves ents to comply with local laws. these price concessions. Mi- tomers pay drug-wholesale by more than 25% since 2010, Vie Inc.’s Humira and Amgen businesses in sectors ranging Talks that led to Privacy chael Kleinrock, research di- distributors, IMS said. reaching $44 per prescription Inc.’s Enbrel, which treat arthri- from social media to heavy in- Shield initially stemmed from rector of the IMS Institute for And while the average list in 2015, IMS said. And Mr. tis and other inflammatory con- dustry without clear guidance Europeans’ concerns following Healthcare Informatics, said price for patent-protected Kleinrock said list prices are ditions, were the second- and on how to legally send infor- leaks from former National Se- IMS wanted to provide more brands rose 12.4% last year, relevant to highlight because third-highest selling drugs, re- mation—like social-media pro- curity Agency contractor Ed- information about post-dis- the net price growth after dis- some patients must pay full spectively. files or personnel data—to the ward Snowden. Free your feet with amazing stretch!

®

Only at FootSmart! It’s a fact— your feet change shape, expanding throughout the day. Our original Stretchies® move with you, for a customized fit. Bunions,

STEPHEN LAM/REUTERS or other foot problems, Delphi has emphasized autonomous-driving and electric car parts since emerging from bankruptcy. will appreciate the pressure-free comfort. Delphi Wins Tax Battle, Shock-absorbing footbeds help fight foot fatigue. Offers Bullish Sales View Available in women’s shoe sizes 6 thru 12, BY JEFF BENNETT financial impact from the IRS’s Nearly 50% of its new busi- medium and wide widths. decision, but it is viewed as a ness will come from Asian cus- 8 colors/patterns. Delphi Automotive PLC victory for a company that tomers, and nearly another won an appeal with the Inter- continues to look for cost cuts. third will be from customers in nal Revenue Service related The IRS initially told Delphi in the Americas, the company Try Stretchies risk-free. to the agency’s 2014 claim that the summer of 2015 that it said on Wednesday. If you’re not satisfied, the auto-parts supplier should wouldbeclassifiedasaU.S. Delphi also plans to repur- be treated as a U.S. corpora- company for federal tax pur- chase $1.5 billion in shares, ex- simply return them tion for income tax purposes poses and would have to pay tending a series of stock repur- within 60 days for even after it reincorporated in taxes retroactive to Oct. 6, chases made by the company a full refund. the U.K. 2009. and other parts makers in re- FREE The decision, disclosed on The IRS contended that Del- cent years. The U.S. auto sup- STANDARD Wednesday by Delphi during a phi, which continues to have ply sector was hit hard by the broader financial presentation, its top executives based in economic downturn last de- SHIPPING is a blow to the Obama admin- Troy, had acquired certain as- cade, but many companies are ON THIS ITEM istration, which has looked to sets of the old Delphi during firmly profitable following NOW slow a trend where companies bankruptcy so it should be bankruptcy filings or other move legal addresses to low- treated like a U.S. company. downsizing tactics. $ 99 tax companies. Delphi origi- The move came amid a push Delphi is looking to further nally was founded in Troy, by the Obama administration build its engineering force 3900 99 Save $16 , Reg. $55 Mich., in 1999 after being spun to combat corporate tax inver- while keeping costs in check. Stretchies® Joyce off from General Motors Co. sions it considers unfair. The The company laid out plans to Item # 78436 But it was re-established as a parts supplier immediately employ 8,000 software engi- new company in Gillingham, contested the conclusions. neers by 2020, up from the U.K., after emerging from Delphi received word on current 5,000. Revenue from Friday that the IRS Office of bankruptcy in 2009. proprietary software sales is JOYCE162 00 Shares of Delphi gained Appeals determined the law expected to triple to $1.5 bil- Use promo code to receive $16 off plus free standard shipping.* 5.6% to $76.42 in 4 p.m. trad- didn’t apply to it, and no ad- lion by the time those engi- To order, visit footsmart.com/stretchies or call 1-866-222-4801 ing on the New York Stock Ex- justments for the tax years neers are hired. change on Wednesday. were required. By 2018, the company aims “We are satisfied that the Once a sprawling conglom- to keep manufacturing ex- IRS appeals process worked as erate making many different penses and material costs intended and reached the cor- components, Delphi has nar- steady. For instance, the com- rect ruling,” the company said rowed its focus to fewer areas pany spent about $2.6 billion in a statement. Delphi also of- and now is considered among in manufacturing expenses last embrace your feet fered a bullish sales outlook the leading suppliers of in au- year, or 17.6% of revenue, and SM for the next two years, project- tonomous-vehicle parts, auto- it aims to spend $3.2 billion in ing a 33% increase in revenue motive electrification and 2018, or 16% of revenue. Delphi *This offer may not be combined with other promotional offers or applied to previously placed orders. Offer expires by 2018 amid growth in Asia safety gear. It booked $15.2 bil- expects its tab for materials May 02, 2016. Expedited delivery charges, oversize shipping charges and additional shipping charges to APO/FPO addresses, and increasing demand for au- lion in revenue last year, but purchasing to fall to 16% of Alaska, Hawaii and U.S. Territories are not included in the Free Shipping offer. tomotive software. expects that figure to grow to revenue by 2018 from 49.1% For questions contact us at 1-866-222-4801. Analysts don’t expect any $20 billion by 2018. last year. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B4 | Thursday, April 14, 2016 **** THE WALL STREET JOURNAL.

TECHNOLOGY @wsjd | wsjd.com SlingTVUnveilsNewOption

Its multi-stream version for $20 a month has Fox channels but none from Disney

BY SHALINI RAMACHANDRAN

Dish Network Corp. un- veiled a new $20-a-month ver- sion of its Sling TV streaming service that will include chan- nels from 21st Century Fox

LAURA MORTON FOR THE WALL STREET JOURNAL for the first time, setting up a Facebook’s newly created group will be led by Regina Dugan. more robust competitor to tra- ditional pay TV. The new package, which Google Executive Set launched Wednesday in beta, will allow for three simultane- ous streams on different devices To Run Facebook Lab in hopes of better catering to families with multiple viewers. little badass. And beautiful.” It will be anchored by Fox chan- BY DEEPA SEETHARAMAN Dr. Dugan received her nels like FX, Fox’s regional AND JACK NICAS Ph.D. in mechanical engineer- sports networks and the Fox ing from the California Insti- broadcast network in 17 markets Facebook Inc. created a re- tute of Technology and was initially, with more affiliates to search lab to develop hard- the first woman to lead the be signed up over time. Sub- ware products and hired a top Defense Advanced Research scribers to the new service will

Google executive to lead the Projects Agency, the Pentagon also have access to on-demand CHUCK HODES/FOX effort, underlining the social- research lab known as Darpa, programming from shows like Terrence Howard and Taraji P. Henson feature in an episode of ‘Empire’ on Fox. networking company’s broad- which she helmed from 2009 “Empire,” as well as the full li- ening technology ambitions. to 2012. Later, she joined Mo- brary of “The Simpsons.” tional pay TV bundle.” Network, which airs the Yan- Disney against Fox. Fox had re- The new group, called torola, then a division of Sling TV was first introduced Several other big program- kees;FoxSports1;aswellas sisted signing on to Sling TV be- Building 8, will be led by Re- Google, and helped launch more than a year ago as a mers that are in the single- the Fox broadcast network, cause it was insisting on car- gina Dugan, a former Pentagon Google’s Advanced Technology skinny bundle of select chan- stream service will also be which airs a big lineup of NFL riage of all its networks, research chief who joined Al- and Projects, a research lab nels, touted as a cheaper option part of the multi-stream offer- games. Fox noted that Sling including its regional sports phabet Inc.’s Google in 2012. for ambitious new products. for consumers without tradi- ing, including AMC Networks TV also now offers a stream- channels, while Sling TV had It will create hardware prod- “I’m excited to have Regina tional pay-TV subscriptions who Inc., A&E Networks, Time ing alternative for Comcast wanted to keep its package slim ucts that “advance our mission apply DARPA-style break- still want some live TV. The new Warner Inc.’s HBO and Turner Corp. subscribers, who haven’t and affordable. Fox executives of connecting the world,” through development at the Fox-anchored package with mul- channels, Scripps Networks In- been able to watch YES for weren’t thrilled about how Sling Chief Executive Mark Zucker- intersection of science and tiple streams is separate from teractive Inc., EPIX and Univi- months amid a carriage dis- TV relegated broadcast net- berg said in a Facebook post products to our mission,” Mr. the original basic version of sion Communications. The pute in the Northeast. works like ABC and Univision to Wednesday. Facebook will in- Zuckerberg said. Sling that included channels main catch to the new option? “Our customer impact con- a premium add-on tier, as op- vest “hundreds of people and Dr. Dugan’s team at Google from Walt Disney Co. but only No channels from Disney. tinues to be minimal, and we posed to keeping them in the hundreds of millions of dollars is effectively the tech giant’s allows one stream at a time. That’s in contrast to the are very confident in the basic package. Disney, on the into this effort over the next short-term skunk-works lab, “Since launch, our customers other version of Sling TV that broad appeal of our offerings,” other hand, had been fine with few years,” he said. with two-year time limits on have asked for more channels Dish has been peddling for a Comcast spokesman said. Sling TV carrying just its few many of its projects. That dif- and multiple streams,” said more than a year now, which The new Sling TV package main channels—ESPN, ESPN 2, Regina Dugan will fers from X, an Alphabet unit Sling TV Chief Executive Roger has at its core Disney-owned won’t be a complete sports so- ABC, Disney Channel and Free- that works on longer-term Lynch in a statement. Creating a channels like ESPN but only al- lution since Disney’s ESPN re- form—because it makes the ma- lead a group tasked bets, such as self-driving cars multi-stream service and adding lows one stream at a time. Dish sides in the other version of jority of its carriage fees from with developing and delivery drones. Fox content “is the first step in will continue to sell that $20-a- Sling TV. Additionally, two ma- those channels. As of last year, Dr. Dugan’s answering their requests.” month option to customers, but jor media companies with big hardware products. lab at Google had about 100 In a memo to employees, it will remain devoid of Fox sports properties, CBS Corp. MORE ON MOBILE staff and 1,000 nonemployee Fox Networks Group Chief Ex- channels. People can buy both and Comcast’s NBCUniversal, subject experts working on ecutive Peter Rice said the new options if they want. still haven’t done deals with Get the latest Building 8 will help launch a projects, including sensor-em- service is “designed for a new The new option may be at- either version of Sling TV. analysis on 10-year strategic plan outlined bedded clothing, modular and younger TV audience” and tractive to local sports fans The two different Sling TV WSJ media and by Mr. Zuckerberg at its annual smartphones and technology “offers an easy, affordable on- and NFL lovers, since it will packages set up a “Hunger .COM advertising, at F8 developer conference this that enables mobile devices to line alternative to the tradi- include Fox channels like YES Games” of streaming, pitting wsj.com/CMO week, including advances in ar- effectively “see” in three di- tificial intelligence, augmented mensions. and virtual reality, and extend- Dr. Dugan is the latest high- ing Internet access to billions level defection from Google to of people around the world, Facebook. Last year, Facebook Alibaba Bets on App for Food-Delivery Services Mike Schroepfer, Facebook’s hired Mary Lou Jepsen, a BY KANE WU add $350 million, according to chief technology officer, said in high-profile executive from an Ant Financial spokeswoman. an interview.. Google’s advanced-projects Chinese e-commerce giant Alibaba also signed an In a statement, Dr. Dugan lab, to work on Oculus. Her Alibaba Group Holding Ltd., agreement with Ele.me under said: “Building 8 is an oppor- background is in display tech- together with its financial affili- which its own online food-ser- tunity to do what I love most. nology. ate, is placing a $1.25 billion bet vices platform, Koubei, will co- tech infused with a sense of Google on Wednesday on food-delivery app Ele.me, operate with Ele.me. our humanity. Audacious sci- thanked Dr. Dugan for her stepping up the battle to enable Alibaba and Ant Financial ence delivered at scale in prod- work and said it wished her Chinese consumers to arrange pledged last year to each in- ucts that feel almost magic. A “the very best.” services through mobile phones. vest three billion yuan ($464.2 The move to back the app— million) in Koubei, whose name whose Chinese name means, translates as “word-of-mouth “Are you hungry?”—comes af- reputation.” United States ter Alibaba reached a deal ear- Ele.me couldn’t be reached lier this year to sell its stake for comment on Wednesday.

$20 Gold Liberty in Meituan-Dianping, China’s China’s Internet companies ALY SONG/REUTERS largest online provider of are fighting for position in the A courier for food-delivery app Ele.me, which is based in Shanghai. 00 movie ticketing, restaurant competitive market for smart- Only $1325 Each! bookings and other on-de- phone applications connecting largest private-fundraising Many startups have burned mand services. Ele.me com- users with brick-and-mortar round globally for a venture- out in the battle to attract us- petes with Meituan-Dianping services such as taxi rides, capital-backed startup. ers with heavy discounts and and Chinese search company food deliveries, restaurant In the round, which valued it subsidies. But Alibaba and Ten- Baidu Inc.’s Nuomi platform. bookings and movie ticketing. at more than $18 billion, cent have deep pockets and Alibaba will invest $900 mil- Meituan-Dianping, formed Meituan-Dianping raised capital supporting services such as lion in Shanghai-based Ele.me by the merger of two rival from investors including Ali- maps, data and payments plat- and financial affiliate Ant Fi- startups last year, raised $3.3 baba’s chief rival, Tencent Hold- forms that could give them an nancial Services Group will billion in January, marking the ings Ltd. edge over other competitors. Over 100 Years Old Genuine Coins Free Shipping an Amazon spokeswoman. SHOP Sticky Apps Retailers may be most ex- Nearly a Full Ounce of Pure Gold! U.S. smartphone and tablet users spend ... and are more likely cited to cater results based on more than three times longer using to select and purchase a customer’s location, These gold double eagles were designed by ContinuedfrompageB1 apps than surfing the mobile Web ... items. whether it is knowing a user James B. Longacre and struck from 1850 And consumers are more has entered their store or is App Mobile browser to 1907. They contain .96750 oz. of pure gold. They likely to window shop for vacationing in warmer climes. have always been some of the most sought after products but not necessarily 200 minutes a day 195 Products viewed per user “If you’re in Australia, we coins in the United States. Prized for their everlasting buy them. 22 might serve you swimwear beauty and substantial gold content, they offer a great People still make most of 5.7 when it’s winter in the 150 alternative to acquiring bullion. They are truly part of their online transactions on Northern Hemisphere,” said America’s history and were minted in Philadelphia, desktop computers. Percentage added to basket Matt Kaness, CEO of San San Francisco, New Orleans, Carson City, and Denver. 24% Ryan McIntyre, chief mar- 100 Francisco fashion retailer Quantities Are Limited – Call Today! keting officer of men’s fash- 13% ModCloth, which has about ion retailer JackThreads 1.2 million users. Toll Free 1-877-255-7470 • www.tmgcoins.com Percentage of transactions Inc., said the average cart is 50 51 EBay Inc. will highlight The Monumental Group, Inc.• 146 Railroad Ave. • Sayville, NY 11782 54% Dates are of our choice. Prices and availability are subject to change without prior notice. about $5 higher on his com- generators to customers The NY daily spot price may effect the prices of this offer. Allow 7 to 10 days shipping. 44% Code: TMG0321 pany’s website than its app. shopping in areas affected by NYS residents add sales tax. MN State residents are not eligible for this offer. 0 But he says customers spend Note: Includes sites that have over 25% a big storm, said Hal Lawton, about 10% more on average 2011 ’12 ’13 ’14 ’15 2016 of transactions on mobile, 10% of which the company’s North America Nova Scotia 10-Days $1395 on mobile devices in a given Estimate are on mobile apps. Data from Q4 2015. senior vice president. six-month period. Source: eMarketer (time spent); Criteo (shopping) THE WALL STREET JOURNAL. Other retailers such as Guided Tours Since 1952+tax,fees Mobile devices also drive Wal-Mart Stores Inc. and Guatemala, Tikal 10 days $1295 Web sales: Nearly 40% of desk- last year spent 3 hours and 5 has created an experience Nordstrom Inc. have explored Costa Rica 9 days $1195 top transactions in the fourth minutes a day using apps, that mimics the mall, with a ways to tie in mobile shop- Panama with Canal 8 days $1195 quarter took place after a cus- compared with 51 minutes seemingly endless inventory ping with stores. Customers Whale Watching • Nova Scotia, PEI 10 days $1395 tomer visited the retailer’s app surfing the mobile Web, ac- to scroll through and bargain- could check in to a store Come Visit the Canadian Canadian Rockies 9 days $1595 or mobile site, according to cording to eMarketer. Such basement prices. through the app, providing Maritimes!—Nova Scotia, Grand Canyon 8 days $1395 consulting firm Criteo. devotion to apps isn’t lost on Some apps, such as those salespeople with their pur- New Brunswick and P.E.I. California Coast 8 days $1395 Olivia Bryant, a 19-year-old retailers. Target has shifted from Zappos and online auc- chase history, even encrypted Mount Rushmore 8 days $1295 Join the smart shoppers and Starbucks barista in Bakers- resources and staff away from tion site Tophatter Inc., iden- payment information, for a New England 8 days $1295 experienced travelers who field, Calif., said she spends Web development to its app— tify a user’s device to judge a quicker and more personal- relyonCaravantohandleall “ Brilliant, Affordable Pricing ” up to two hours a day shop- which it hopes to make cen- customer’s possible buying ized shopping experience. thedetailswhileyou&your —Arthur Frommer, Travel Editor ping on her iPhone through tral to all of its digital design. power. “Our data shows that But the main catch for apps such as marketplace “With smartphones we’re the more expensive device apps may be the impulsive familyenjoyawell-earned, OrderFREE28-PageBrochure: worry-free vacation. Etsy Inc. and fashion retailer able to reach you all the you have, the more you might shoppers. “On bar nights, we Poshmark Inc. “It’s much time” through texts or lock- spend,” said Tophatter CEO see drunk shopping, which is simpler to shop on my screen messages, known as Ashvin Kumar. very interesting,” said Alan phone,” she said. “There push notifications, said Wish “Millions of Amazon cus- Tisch, CEO of fashion app aren’t a lot of distractions.” CEO Peter Szulczewski. tomers shop exclusively on a Spring Inc. “Maybe there’s an The average U.S. consumer The San Francisco startup mobile device all year,” said opportunity there.” THE WALL STREET JOURNAL. **** Thursday, April 14, 2016 | B5 TECHNOLOGY

Verizon Workers Strike as Tense Talks Fail GoPro Taps Walkout of 40,000 Apple employees mostly affects landline phone, Designer Internet businesses BY EZEQUIEL MINAYA

BY RYAN KNUTSON GoPro Inc. has hired a member of Apple Inc.’s design Nearly 40,000 union em- team, contributing to a rally in ployees of Verizon Communi- shares of the wearable-camera cations Inc. went on strike maker on Wednesday. Wednesday, starting one of the Daniel Coster, who is re- largest U.S. walkouts in recent portedly credited with con- years and attracting the atten- tributing to the iPhone’s de- tion of presidential candidates. sign and the iPad’s wireless The strike was called by the keyboard, among other prod- Communications Workers of ucts, will begin his new post America and the International as vice president of design at Brotherhood of Electrical GoPro at month’s end. Workers after 10 months of Shares of GoPro, which tense contract negotiations. have slumped 69% over the The unions mostly repre- past 12 months, jumped 19% to sent workers in Verizon’s tra- $13.90 in Nasdaq trading. ditional landline business. The Shares of other struggling company’s wireless business, tech companies, such as Fitbit which now accounts for about Inc. and Yelp Inc., rallied two-thirds of Verizon’s reve- Wednesday, up 12% and 4.3%, nue, is almost entirely non- respectively. union. GoPro said that Mr. Coster The unions say they are try- would have a hand in all as- ing to improve pension bene- pects of design, from hard- fits and prevent Verizon from ware to software to services. outsourcing jobs to contrac- GoPro described Mr. Coster tors. The company, which has as a “core member of Apple’s about 178,000 total employees, elite industrial design team for is looking to reduce retirement more than 20 years” and benefits and health-care costs. added that he “holds more Democratic presidential than 500 design patents and candidates Hillary Clinton and several utility patents, and has

Sen. Bernie Sanders both JULIO CORTEZ/ASSOCIATED PRESS been recognized by several in- voiced support for the unions, Workers rallied outside of Verizon offices in Newark, N.J., on Wednesday. The last strike at Verizon, in 2011, continued for two weeks. ternational design organiza- which picketed outside some tions for his work.” Verizon Wireless stores. About greed of Verizon and corpo- “Our objective in these negoti- offered to help mediate, but nonunion employees to fill in. The hire was a shot in the 100 wireless employees are rate America.” ations is to preserve good jobs the union said they hadn’t This is the third strike since arm for struggling GoPro, part of the CWA, which allows In a blog post, Verizon with competitive wages and agreed to work with the 2000. The last strike, in 2011, which in February posted that union to picket there. Chief Executive Lowell Mc- excellent benefits while ad- group. On Wednesday, the lasted two weeks. Workers weak fourth-quarter earnings, “I know there’s going to be Adam criticized the Vermont dressing the needs of our CWA filed a charge with the from cable splicers to call cen- extending its rough ride of re- a lot of pain involved,” said senator. “He oversimplifies the ever-changing business.” National Labor Relations ter employees across several cent results. The company in Mr. Sanders, who also joined complex forces operating in The sides remained far Board, alleging Verizon has states, including New York, January announced a 7% re- pickets at a rally in Brooklyn. today’s technologically ad- apart Wednesday. On Tuesday, failed to bargain in good faith. Massachusetts and Virginia, duction of its workforce, and “I want to thank you for vanced and hyper-competitive Verizon said the Federal Medi- Verizon said it hopes to were expected to participate last year a 50% price cut to its standing up to the outrageous economy,” Mr. McAdam wrote. ation and Conciliation Service minimize disruptions by using in the strike. newest camera.

Tesla’s factory. The plant from EMIRATES AIRLINE open about how the A380 has Faraday, though, requires a leap been a success for Emirates,” Mr. Tesco Is Cautious on Profit Business of faith. Faraday has no an- Carrier to Purchase Clark said, adding that the large- nounced products and doesn’t More Airbus Jets capacity plane was a “boon” for Watch even have a public prototype. Emirates Airline Wednesday operations at packed airports Nonetheless it has hired 700 said it was buying two more such as London Heathrow, “and people in the U.S., and it has Airbus Group SE A380 super- we get a lot of positive feedback pledged to add more than 1,000 jumbos, a day after the Euro- from our customers.” additional people in California pean plane maker announced —Robert Wall FARADAY FUTURE alone in the next four years. the order as one from an undis- Construction Starts Faraday, based in Los Angeles, closed customer. REISS HOLDINGS has promised to hire 4,500 people Emirates Airline, the world’s Warburg to Buy On Nevada Car Plant at the plant and invest $1 billion. largest international carrier by Nevada is officially in the car- —Mike Ramsey traffic, said the additional air- Majority Stake making business. craft will be delivered in the Warburg Pincus LLC, a New Faraday Future Inc., an elec- LEVEL 3 COMMUNICATIONS fourth quarter of next year. The York-based private-equity firm tric-car startup financed by a purchase has a list price value of with more than $40 billion un- Chinese billionaire, began con- CEO Returns to Job $865.2 million, though airlines der management, said it has struction on a new assembly From Medical Leave often get steep discounts. agreed to buy a majority stake plant in a dusty tract 25 miles Level 3 Communications Inc. Emirates is the largest buyer in Reiss Holdings, valuing the north of the Las Vegas Strip. said Chief Executive Jeff Storey of the A380 double-decker, with British fashion retailer at £230 The plot of land off Interstate has returned to work from a 142 now ordered. The Dubai- million ($328 million). 15 is surrounded by solar farms, a medical leave of absence follow- based carrier is the buyer of Reiss was founded in 1971 by fireworks factory and marijuana- ing heart surgery, resuming all about 45% of all A380s Airbus David Reiss, who will keep a mi-

growing centers. But soon the of his duties and responsibilities. has sold. Other airlines have nority stake in the business and DYLAN THOMAS FOR THE WALL STREET JOURNAL walls will go up on what state of- Mr. Storey had the operation shied away from the large plane, stay on as chairman and chief ficials hope is an extension of the to address “a recently diagnosed concerned they can’t find a fi- executive, Warburg Pincus said Tesco PLC reported a small Tesco’s operating profit exclud- outsize gamble the state already heart condition” in late February nancially viable way to fill the in a statement. Reiss operates in rise in adjusted profit for its ing one-time items—a figure has made on electric cars by and had been expected to make aircraft, which seats more than 160 locations in 15 countries and fiscal year as the British super- closely watched by investors— backing Tesla Motors Inc.’s giant a full recovery. 500 passengers. had sales of £146 million in the market giant logged stronger came to £944 million ($1.35 bil- battery factory outside of Reno. “I’m pleased to be back,” said Emirates Airline President 12 months to Jan. 31. sales in the U.K. but signaled lion), up 1.1% from a year ear- Nevada signed off on a total Mr. Storey said in prepared re- Tim Clark has been most outspo- Warburg Pincus said it plans that future profitability would lier. Tesco had guided to a of $1.6 billion in incentives for marks on Wednesday. ken backer for the plane outside to expand the company globally. be capped by investment. trading profit of £940 million the two projects, most of it for —Tess Stynes of Airbus. “We’ve always been —Simon Clark For the year ended Feb. 27, to £950 million.

ADVERTISEMENT

The Mart Adjustable You appreciate design To advertise: 800-366-3975 or WSJ.com/classifieds Headrest

ADVERTISING SERVICES BUSINESS OPPORTUNITY You require comfort

GIBSON INN .999 PURE GOLD Fully restored Historic Inn.30 rms $750 oz You demand quality THE Bar & Rest. Adjacent property to Large Producing Gold Mine expand. 5 star location in charming sea port expanding plant Gold Directly From the Source Proprietary town. Close to top rated beaches on Gulf Min 20 oz Lots Breathable Mesh Coast. Owners retiring. Price $3,430m (Short Term Offer) Visionary design and engineering MART email [email protected] ACCREDITED INVESTORS ONLY Phone 850 653 5627 855-339-0749 have come together ADVERTISE to produce a chair BUSINESS OPPORTUNITY 50% Annual Return TODAY Secured by jobs. Fast growing Solar Sales so ergonomically perfect,      and Installation Company has approved contracts to factor. so completely re-imagined       Will Pay 4.25% monthly. Secured at 40% LTV. In California and Colorado. (800) 366-3975       that it exists in a Intuitive       Solar is Hot Call Kirk 720-620-3168 Fingertip [email protected]    ! "  #$ category all its own. Controls      "  Place an ad using the     % & CAPITAL WANTED '    (   This is no mere office chair. self-service option at:    )%    '" Fully wsj.com/classifieds  %   Adjustable ' *      Lumbar This is Vaya.     Support      ' +,--,!!! .  /012 34  A Ken Okuyana Design                               TRAVEL

Attention Film Investors: Own Shares in Save Up To 60% Upcoming Hollywood Feature Films All Star Cast -- Award Winning Screenplay. First & Business US Movie theater release, then Worldwide Distribution INTERNATIONAL Die-Cast Aluminum Major Airlines, Corporate Travel Exclusively from Positive Posture © 2016 Dow Jones & Company, Inc. in 49 foreign countries. Minimum Investment $12,500 Back and Base All Rights Reserved. for a 1/2% Equity Revenue Share. Never Fly Coach Again! Made in Japan 888-725-1799 vayachair.com Once In A Lifetime Productions, Inc. www.cooktravel.net 818-761-8400 | [email protected] (800) 435-8776 B6 | Thursday, April 14, 2016 ** THE WALL STREET JOURNAL. BUSINESS NEWS ADVERTISEMENT Legal Notices To advertise: 800-366-3975 or WSJ.com/classifieds Air-Travel Survey Reveals CLASS ACTIONS American Fliers’ Habits                  Airline trips taken      for business purposes        '  & +,+-./%.+01+         in 2015 accounted             $ 2  !  !   ! "!# $  for 31% of the total  2 ! $ 2 " & !3! BY SUSAN CAREY %& '( (  '  '& More than 80% of the adult   ')) ( )(  U.S. population have flown in     )& )(* their lifetimes, compared with   & 49% in 1971, said a survey done for the leading U.S. air-                    line trade group. Last year,             45% took to the skies, up from                21% in 1971.             Air travelers last year were   )) 2$#+ *+ "*1 $*'-'-$+ /( # /(-0( 2!#0("+$1 )-+ "'!#") $+ !#0$+ *0 5 )-+6 0 %% * equally split by gender, nearly +' 03 # % "#0( 78, 9:79 '(# !.( "#0( 9;, 9:7<, -*0)!+-=$ '($ 5$'')$%$*' )"++ $#- 16 "*1

divided into thirds by age MARK RALSTON/AGENCE FRANCE-PRESSE/GETTY IMAGES /$#$ 1"%".$1 '($#$& '($ 5$'')$%$*' )"++6 groupings and more ethnically Last year, 45% of Americans took to the skies, up from 21% in ’71.                      diverse, according to the sur-           vey of about 3,000 members Of those who flew last year, deciding whether to travel by    )   4$! $  $ 51    ! $  '% !/ $!   ! !  of the general public 18 and 23% chose to purchase a seat air. Time spent in travel,     !/ '$! !  !!  !/     %./4 2 6 7/89  older conducted by Ipsos Pub- upgrade using money, points safety perceptions, operational  /!   / /     " '  :/4 ! /! 4!    ; ! lic Affairs. The average num- or miles, the study said. Those reliability and convenience of :/$  !"  " ' #    !   $ 4! /  69  /#  ' / ber of airline trips taken last traveling for personal reasons the airport also counted  '!/  " ' < 69 !4  " ;  % $  <69 " !2< year was 4.8, with 31% taking purchased basic economy tick- strongly. But the quality of in-  69  !  ;!  !# =   "$! "  (2 :4  6 7 /89& just one trip and 15% taking ets 70% of the time in 2015, flight amenities and amenities    (     (    /  4!"   ! $!#    nine or more, the study said. 56% booked their tickets on an at the airport rated much  ; ! #   %   % "        ! ""!   " '   Airline trips taken for busi- airline website and they lower. !/  4!4  "   / ;   !!/ !   4 '!! ($! )!   ness purposes last year ac- checked an average of 1.1 Before flight, the most im- % )3 6 7 2   89! >?-000000  /  6 7 "89&   "  44!% # counted for 31% of the total, pieces of luggage, the study portant factors for travelers  '$!  ; ! %  /"   /& down from 47% in 1997. Lei- said. More than half the were the speed of getting  !2 ;    $ 10 50+@  +5,00 4&"& !  !  !  !    sure trips accounted for 48% checked items didn’t require through security and the effi-   !/ '$! !  !!  !/   '! )& 3   '$! $  '$!!" +?) and personal trips not for lei- payment. Two thirds of the ciency of the boarding pro- ?0+   $4!! %$ '%   --++1.+?1A  !" 69 ;!  4!4  " $ sure accounted for 21% of the group surveyed prefer the a la cess. During the flight, leg-  44!%  ! !    B$< 69 ;!  / $   "  ; 4!C$ / 2   total, according to the data carte pricing model in which room and seat comfort 2        4/   /!   4$  2!"  " ;  % $    !/ +0 50+@ 6   /9 $  2! < 69 ;!  4!4   prepared for Airlines for they pay only for the airline mattered the most, followed  / $  44!%  !  ! <  6%9 ;! ( '$ = 44/ !  ;! America. services and amenities they by space for carry-on items,  !# =   !"$! "  (2 :4  $  44!% & Of those who flew last year, need or want. the study found. three-quarters said they are Younger travelers and peo- Finally, for an industry de-  ! "#$ " %$%&$#  '($ $'')$%$*' )"++, !# #-.('+ /-)) &$ "$0'$1 & '($ 2$*1-*. 0'- * "*1 '($ $'')$%$*', "*1 ! %" &$ $*'-')$1 ' +("#$ -* '($ $'')$%$*' !*1  #$ %  # !/%  /  somewhat or very likely to ple with less than $50,000 in fined by anecdotes and trav- '" !" #$ "#  /4    /$" # //2  '"  " !!  ' /$! travel by air this year. annual household income are eler snark, the study found (2 /D &)&  ( & & & ): +A1001 ;$3  E15+A # .! 4  6?@@9 AA?.++@A ! # Some 63% of 2015 airline more likely to fly today than that 80% of 2015 fliers were "  F' /$! (2&/"& '4   /  '" !" /    ;  !" trips were domestic, followed in past decades, according to somewhat or very satisfied  ;  " #  '"  " !! ;;;&' /$! (2&/"& by 19% to Latin America and Airlines for America. Millen- with their overall flying expe-  #$ !  ""!   " '   ! !   2  !/%  4#" $ !  4!4  " the Caribbean and 8% to Eu- nial travelers between 18 and riences last year, with even #$ "$  $"  '" !"   !  $2$  ? 50+@&  #$ !  ""!   " '  rope. Two-thirds of fliers last 34 on average flew six times higher levels of satisfaction   $"  4!4! '" !" #$ ;   2  !    !$    4!/   " year were members of an air- in 2015 but are value-con- reported by those who receive $ #$ ; %!  $ # # C$ 2" ! ! ! ! #  '$!   /& line frequent-flier program but scious when spending money expedited security screening  #$ !  ""!   " '  ;   :/$ #$!  !"  " '  #$ "$  most didn’t have elite status, on travel. Also price-conscious through PreCheck and Global $"  !B$  ! :/$  $/       !  $ G 50+@  //! / ;   !$/  the study found. The preferred are retirees (83%), women Entry, two programs run by !   /&  #$ 4!4!# :/$  #$!  !"  " '  #$ ;   $ # # C$ 2" check-in method was on a per- (85%) and people flying for the government. About 14% of ! ! ! ! #  '$!   /  #$ ;   2  !   4!/   "& sonal computer or mobile de- personal reasons (88%). those surveyed were neutral vice, with just 11% of travelers The study found that travel- about their 2015 travel experi- # C/   4!4  "  4!4    / ! ( '$ = " ! !# =   !"$! "  (2 :4   "$    ;  '$!  %! ( checking in at airport ticket ers value price and airline ences and 6% were somewhat '$   /$  !  2   $/  # !    !  $ G 50+@  //! / counters. schedule as most important in or very dissatisfied. ;   !$/  !   /& )$"+$ 1 * ' 0 *'"0' '($ !#', '($ )$#3+ -0$, )-+, # $$*1"*'+ !*+$) #$."#1-*. '(-+ * '-0$ )) 4!$+'- *+ "& !' '(-+ * '-0$, '($ 2# 2 +$1 $'')$%$*', # !# $)-.-&-)-' ' 2"#'-0-2"'$ -* '($ $'')$%$*' +( !)1 &$ 1-#$0'$1 ' '($ )"-%+ 1%-*-+'#"' # # $"1 !*+$) B$  !  /  '" !" $  " , ' /$! (2 /D &)&  ( & & & ): +A1001 ;$3  E15+A 6?@@9 AA?.++@A F' /$! (2&/" ;;;&' /$! (2&/" B$!  !  !B$  !  /  '" !" $  "  ( '$ ,

)  ( H )I J (    ( (( I  (( / &I& (2  B& " & !!   B& ! @E (%2  %$ +5E+ %$   "!/  -- !     0A0@? ; !3  +0050 6GA19 EGA.5E00 6?009 1?0.?-G@  , 4! +- 50+@ )# ! !   '$!

BANKRUPTCIES TAYLOR GLASCOCK FOR THE WALL STREET JOURNAL           Workers examined basil seedlings at FarmedHere’s Bedford Park, Ill., facility last November, when the               ! " #$ !                   startup was going through a strategic transition. The company has moved away from aquaponics.     !!"#   % %        &     '( LEGAL %  &  ) &      %      % crops by 30%. lighting, fertilizer and grow-        $ %  &    ' ( )* +,         Most startups grow lettuce ing methods produces the #    -     -%     #  # ( ).# /# * #+, NOTICES FARM  #  0  % # 0   .#     .# /#  % $"  and herbs that have short tastiest greens at the lowest  - 1# %  2  *  1#  3 # "  * # %" #  2  * 453  6  7  1%  1% (#   3 "  2%  growing cycles and thrive in cost. Some startups operate *  )*+,       8  %          99  8!& ( )   +,                 ContinuedfrompageB1 controlled environments. greenhouses, while others    ( )    +, ADVERTISE TODAY ticated mix of crop science, Brooklyn-based Edenworks stack trays of plants in so-   %&       "#  #   *         (, #:#  .# /# * #  # "   #      fertilizer know-how as well as says it can produce many va- called vertical farms that rely 88  8;       (, # # %  %       8( , 8 ;( , 8 <(0,(&,(!, 8&( ,  8&8( ,      #-# %%      expensive lighting and sensor rieties of baby lettuce in its on lighting systems instead of "  #"  %  # "  #  0    %&             %  # ( )1# systems to monitor tempera- indoor farm in just 18 to 21 sunlight.  . #+,     % =    *  '* +,+ -.   ,/  0 ture, moisture and other con- days compared with 28 to 35 “It is more difficult for hy- 1 2*'3  1" 8&!                     > %# ?        @ ditions. days for field-grown prod- droponic growers to achieve    *  %% " # "   - % 0%             A 5%    3%#  "    0    "    “This is very much a tech- ucts. the same taste as soil-grown  A 0   BCC 0   #- ( *$51 %#      =    - ",     =    * A  % (%# 0   "%  " %,  nology play,” said David “We are getting better unit products or herbs,” said Elly    B 1 " DD* Rosenberg, chief executive of economics than a farmer Truesdell, a buyer for Whole 7 % E 2  "-F  ""   / / " "F  "" (800) 366-3975 Newark, N.J.-based Aero- farming 1,000 acres in Sali- Foods, which buys produce 8<< DG# $- Farms LLC, which currently nas, Calif.,” said Edenworks from several high-tech farm-      && sales.legalnotices H%B (&&, 8&8@ 3  "%B (&&, 8&8@8 operates one indoor commer- CEO Jason Green, noting that ers. In hydroponic farming,   %&               #  0"     0I @wsj.com a shorter growing cycle and a plants are grown in nutrient-   *   % =    "      # #    0     cial farm as well as a re-     0 2 2*'3  4** "+,+ .   , -5 67#  $8 9/ H 0 "%   search and development farm rich water.   >0I  %      0I "  0B ( , % %  %%        A %    %#  " (0,     %-     "0   and a farm in a local school. Ms. Truesdell said custom- . 0% 7  ?%      E# > %# ?       @J Placeanadwiththe High-tech indoor  (,  -  (, 1 " DD* 8<< DG# $-       && ($B AeroFarms said it has ers are willing to pay a pre- 7 % E 2 5 =    / / " 5 =,  %   * J (, $  ?"   self-service tool at: raised over $70 million in mium for locally grown pro- .  K 3%    K     %  ?%  H  H D "  8 LA 1  farming can involve  %  % .# /# ($B 7 3   " 7 ,  >   *    $"  wsj.com/classifieds corporate and project financ- duce.  H       !;@8 ($B  -  ,  %   $ . ""  (, millions of dollars  >      H   &  2            @ ing. In New York, Whole Foods   %&             0I  "% %   -   - 0-    "  #   % =    *     The company isn’t profit- in investments. typically sells a 5-ounce pack-   %&      1# . # "  0 I   " "  " able but says it expects each age of Gotham Greens lettuce         "        I " %       I          #      I   # of its farms to become cash- for $3.99, about the same   %&        %  "          .# /# * #  - % 0%  %  0""C   "   flow positive in its first year. 12-month operation allows price as a slightly larger % % #% % "    "       "   -   B$ % @ &  FarmedHere, which re- the startup to turn over its package of store-brand or- 155 7MH. DD* started its business in Febru- crop more often than soil- ganic greens grown in Cali- 8<< DG# $-      && H%B (&&, 8&8@ ary, abandoned an aquaponic based farms. By locating fornia and $1 more than a model that relied on a tilapia close to purchasers, the com- head of soil-grown organic farm to generate fertilizer to pany cuts transportation and romaine lettuce. grow lettuce, basil and other warehouse costs, he added. Gotham Greens CEO Viraj greens. Now the company, Still, the economics are Puri said the company had to which has raised about $13 challenging. In a second facil- experiment with dozens of THE MART million, uses plant-derived ity, not yet under construc- varieties of kale before set- organic fertilizers. tion, Edenworks plans to cut tling on one that would thrive ADVERTISE TODAY Aquaponics “sounds pretty labor costs by more than 50% in its greenhouses without (800) 366-3975 elegant,” said Nate Laurell, by automating seeding, har- turning bitter and struggled [email protected] who recently took over as vesting, washing, drying, to find a variety of green leaf CEO. But “it’s a much sim- packaging and labeling. “The lettuce that wouldn’t “bolt,” Place an ad using pler process to use organic numbers would not work out or shoot up and take on a the self-service option at: nutrients than to manage a if we didn’t do that,” Mr. sharp taste, just before har- wsj.com/classifieds © 2016 Dow Jones & Company, Inc. All Rights Reserved. school of fish and all that bi- Green said. vesting. © 2016 Dow Jones & Company, Inc. ology and chemistry.” He Flavor is also tricky. Indus- “Plants are not widgets,” All Rights Reserved. said the change will also re- try participants disagree said Mr. Puri. “There are a lot duce the total cost of raising about what combination of of dependent variables.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | B7 BUSINESS NEWS VW Labor Deal SpursBonusCuts BY WILLIAM BOSTON lished on April 28. The agreement to cut man- BERLIN—Volkswagen AG agement bonuses comes after Chairman Hans Dieter Pötsch days of wrangling between the agreed to a sharp cut in bo- company’s senior manage- nuses he is entitled to from ment, core shareholders and his time as the car maker’s fi- labor representatives. The nance chief, paving the way state of Lower Saxony, which for a broader agreement holds 20% of Volkswagen’s among top executives over bo- voting capital, and the IG Met- nus cuts in light of the com- all trade union pushed man- pany’s crippling emissions- agement to accept a sweeping cheating scandal. cut in bonuses. Volkswagen said Wednes- “I very much welcome this day that the deal would be ap- step by Mr. Pötsch,” Stephan proved at a supervisory board Weil, the prime minister of meeting on April 22, when the Lower Saxony, who was driv- company’s directors are also ing the push to cut bonuses, expected to review a report on told the state’s legislature on

the diesel scandal from Jones Wednesday. MIGUEL GONZALEZ JR./THE WALL STREET JOURNAL Day. Volkswagen commis- Mr. Weil also said that Ford expects to build 250 high-performance GT cars a year and wants potential buyers to demonstrate they will actually drive the cars. sioned the U.S. law firm in Volkswagen’s directors would September to conduct a thor- be briefed in detail on the ough independent investiga- Jones Day investigation at the tion into the events surround- next board meeting. It isn’t Ford to Audition Supercar Buyers ing the company’s decision to clear how much of the report rig diesel engines to cheat on will be made public. Shoppers should be Model 3, a much less expen- for the mass market. hours of Le Mans. emissions tests. The move comes as Volks- sive electric sedan that will Ford’s application process Ford revived the GT about a The board of directors will wagen is embroiled in legal prepared to provide arrive next year. “is the velvet rope line at the decade ago. It was designed to also review Volkswagen’s 2015 proceedings in the U.S. and videos, social media to To get a GT, candidates incredibly trendy club,” said be an American-made, mid-en- accounts the same day. The Germany ranging from crimi- must lay out enthusiast cre- Dave Kinney, who publishes gine supercar rivaling Euro- company is planning to pub- nal investigation into allega- get limited-edition GT dentials. If they own a previ- the price guide for Hagerty In- pean exotics like Ferrari and lish a few details from the ac- tions of fraud, a major civil ous-generation GT, for in- surance Agency LLC, the larg- Lamborghini SpA, but with a counts, which could include lawsuit with more than 500 BY CHRISTINA ROGERS stance, Ford wants to know est insurer of classic and col- much lower price tag. the dividend, which could be plaintiffs in San Francisco, and AND GAUTHAM NAGESH how many miles they put on lector’scarsintheU.S. Early in its production run, sharply reduced or scrapped, an investigation by the Federal that car’s odometer. The latest GT, to be built demand was strong with the as well as any additional Trade Commission into For buyers angling to get Prospects also have the with carbon fiber body panels car selling over its $150,000 charges Volkswagen will take whether Volkswagen’s adver- on the waiting list for Ford chance to plead their case in and a 600-horsepower engine, list price. Sales cooled, how- to fund potential fines and tising for “clean diesel” consti- Motor Co.’s new GT supercar, writing and add supporting made a splash in 2015 at the ever after the initial rush. compensation linked to its tuted fraud in advertising. having enough in the bank to material, such as video and so- Detroit auto show. The com- Several years later, how- emissions scandal. The full —Hendrik Varnholt cover the roughly $450,000 cial media posts, that show pany had discontinued a prior ever, the GT is considered a fa- earnings report will be pub- contributed to this article. asking price isn’t enough. dedication. edition it started selling in vorite among collectors. Prices They also need to convince the “We really want to find 2004, and it backed away from for low-mileage used models company they are ready to those customers who will use investing in its gaudiest mod- began to soar in late 2012, and drive it. this car and drive this car and els during the financial crisis today the average 2005-06 In a rare move for the do- be true ambassadors for amid a cash shortage. Ford GT is worth more than mestic auto industry, the Ford,” said Henry Ford III, It isn’t uncommon for high- $250,000, according to Dearborn, Mich., auto maker is great-great grandson of end cars to have lengthy wait Hagerty. taking applications for the lat- founder Henry Ford and global lists or aim for handpicked cli- Karl Brauer, a 2005 Ford GT est iteration of its mid-engine marketing manager for Ford’s entele. Italy’s Ferrari NV, a owner and senior analyst for sports car. Ford will produce performance division. Mr. Ford sports car maker capping an- car-research firm Kelley Blue only 250 a year, but the com- spoke to The Wall Street Jour- nual output at about 7,000, has Book, wasted no time putting pany doesn’t want them col- nal in a podcast. multiyear waits and often allo- in his application for the new lecting dust in garages. The reservation deadline cates models based on how one. The No. 2 U.S. car maker for the first two years of pro- many Ferraris a buyer has “[Ford is] trying to prevent opened up the application pro- duction is May 12. Tesla’s purchased already. them from becoming objects cess Wednesday morning. The Model 3 collected 300,000 re- The GT nameplate dates of the super wealthy to be move comes about two weeks fundable deposits in the first back to the 1960s, when the stored away,” Mr. Brauer said.

JULIAN STRATENSCHULTE/AFP/GETTY IMAGES after Tesla Motors Inc. began week of accepting reserva- GT40 bolstered Ford’s racing “It’s not a statement car if it VW Chairman Hans Dieter Pötsch’s decision helped quell strife. taking $1,000 deposits for the tions—but that car is aiming chops by sweeping the 24 sits under a cover.”

Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 20s <0 1234 5678 910111213 69 Aid 30 Comedian with Edmontondt 30s 0s consideration a car collection VancouverV Calgary 14 15 16 60s 50s 10s 70 Storms of the 31 Provocatively Winnipegip 17 18 19 1990s stylish Seattle 40s 40s 20s Down 40s 40s 30s 20 21 22 32 Trendily Helena Montreal PortlanPortlandd Bismarckk 60s Ottawa 1 Kin of ketches self-referential Billingsg 40s Eugene AugustaA g t 23 24 25 Boise 2 Near 33 Prepare to Mpls./St.p/pls / .P. Paul TorontoT t AlbanyA banb Bostont 50s 40s 40s 26 27 28 29 30 31 switch Siouxoux FFallsll 50s Hartfordrtford 60s 3 Editor’s mark in PierreP Milwaukeek Detroitt Buffalol 35 Tina’s “30 Rock” 50s Newew YYorkk the list “...pansy, 80s ChicagoChicCh g ClevelandClevel d 70s 32 33 34 35 36 37 Reno Deses Moines 60s periwinkle, role Cheyenne Omahah PhiladelphiaPhhilh d llhp hi 80s Sacramentot Saltalt LakeL e CityCCity Pittsburgh 38 39 40 41 Springfieldpg d Indianapolis petunia...”? 36 Unveiling Denver Washingtonhihingtongton D.C.D.CD C 90s Kansas 50s exclamation Sanan Francisco40s 40s Topeka CharlestonCharles 42 43 44 45 46 4 Prepares pilaf City Richmondh d 100+ Las ColoradoC ld St.. LouisLoL LouisvilleLoL ill 39 Source of shock, 60s VegasVega Springspg Wichitahit 5 “Castle” carrier 70s Nashvilleh 70s Raleighgh 47 48 49 50 at times LosA AngeAngelesl 70s 50s CharlotteCCh l tt 6 Iron, e.g. SantaaF Fe Memphisphi ColumbiaC b 51 52 53 54 55 56 43 Burmese PPhoenixhhi AlbuquerqueAlb q q Oklahoma City Warm Rain 7 History exam San Diego 90s Little RocRockk AtlantaAtl t greeting Tucson 80s Birminghamh 57 58 59 60 61 fodder Ft. Worth DllDallas JacksonJack 44 Capp, Pacino and Cold T-storms 8 Hardly high-end ElP Paso JacksonvilleJ k 62 63 64 others 10s AustinAti Houston Mobileb Stationary 9 Full of 20s Orlandold Snow 65 66 67 45 “Danses 30s Newew Orleans resentment 40s 80s SanannA AntonioA Tampa 80s Gothiques” 68 69 70 10 Like argon and 50s Honolulull Miami Showers Flurries composer AAnchorageh oxygen 70s 48 2015 World Ice E-FILING | By Harold Jones 11 Its business is Series champs picking up Today Tomorrow Today Tomorrow 50 Satchel’s cousin U.S. Forecasts Across 26 House coverage 49 Enterprise 12 Pot unit City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W 52 Praline morsel s...sunny; pc... partly cloudy; c...cloudy; sh...showers; offerer subsidiary Omaha 75 49 s 77 54 pc Frankfurt 61 45 pc 60 48 c 1 Sounds from 13 Improve t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice 53 Drill leader Orlando 84 66 t 81 66 t Geneva 62 44 c 60 49 t pounds 28 High pitch 51 Fowl territory? Today Tomorrow 18 Stalagmite Philadelphia 62 40 s 64 42 s Havana 89 65 s 88 67 pc 55 “The fox so City Hi Lo W Hi Lo W 5 “Moneytalks” 32 George W. got 54 Sestina section contributions Phoenix 88 63 s 80 58 pc Hong Kong 82 74 c 81 76 t band cunning and free” Anchorage 50 36 pc 52 36 pc Pittsburgh 63 40 s 69 42 s Istanbul 74 58 s 68 55 pc one in 1975 57 Distressed 22 Scatterbrained 56 Some have codes Atlanta 61 48 c 58 49 c Portland, Maine 51 32 s 53 34 s Jakarta 91 77 t 88 78 t 9 Make a mess of 34 Eric of “Pulp jeans, e.g.? sort Austin 77 55 pc 81 57 pc Portland, Ore. 58 44 r 62 44 c Jerusalem 61 49 s 69 54 s Fiction” 57 51-Across Baltimore 62 37 s 62 37 s Sacramento 67 47 pc 74 54 s Johannesburg 79 52 s 78 52 s 14 Harbor, say 24 Cook’s invitation 61 Certain to denizens Boise 55 38 c 60 38 pc St. Louis 70 52 pc 76 54 pc London 61 46 r 58 41 t 15 Lackluster 37 Provide with experience 27 Astronomer’s Boston 48 38 s 50 40 s Salt Lake City 53 39 sh 56 44 sh Madrid 66 47 c 69 50 pc startup capital 58 Track Burlington 50 29 s 56 34 s San Francisco 62 50 pc 67 55 s Manila 97 83 s 96 83 s 16 It has a 45-mile 62 “A New find 59 Public swimming Charlotte 66 44 pc 62 43 c SantaFe 7343pc6837pc Melbourne 76 58 pc 79 58 s border with 38 Role for Fonda, Argentina” show 29 To be turned off, Chicago 58 39 s 65 46 s Seattle 59 45 c 61 45 c Mexico City 83 55 pc 82 52 pc Lancaster, site Canada 63 Sight in the when the Cleveland 56 40 s 65 43 s Sioux Falls 75 48 s 74 54 c Milan 74 47 s 68 51 pc Russell and 17 Courted in a unrated version lighthouse is 60 Womanizing sort Dallas 76 55 pc 79 60 pc Wash., D.C. 64 43 s 64 42 s Moscow 63 47 c 53 38 c Costner Denver 7546pc5934t Mumbai 95 77 pc 94 80 pc rom-com, of “Gladiator”? retired? 64 Bankroll Detroit 56 35 s 64 42 s Paris 63 49 c 62 47 t maybe? 40 By means of Honolulu 84 72 sh 85 70 sh International Rio de Janeiro 92 78 s 92 78 s 65 Player Today Tomorrow Previous Puzzle’s Solution Houston 78 59 c 80 62 pc Riyadh 83 55 s 84 57 s 19 Fugu worry 41 Made like a rat nicknamed “the City Hi Lo W Hi Lo W SELF MEARA PAD Indianapolis 65 42 s 70 46 s Rome 70 48 s 69 52 s 20 Like the Islamic 42 Bleacher feature King of Clay” OPAL TAXT I P USA Kansas City 72 50 s 74 52 pc Amsterdam 60 47 c 55 44 t San Juan 84 71 pc 84 72 pc DEMOCRAT I CPARTY Las Vegas 78 57 pc 70 57 pc Athens 80 62 pc 79 59 s Seoul 69 42 pc 70 45 s calendar 43 Autos with 66 Fuego SEETHE STEELERS Little Rock 74 55 c 72 57 pc Bangkok 102 83 s 101 85 s Shanghai 79 59 pc 71 62 c SEEM CAI RO 21 Rosary SkyActiv extinguisher JURASSI CPARK Los Angeles 73 54 pc 75 58 s Beijing 74 43 s 75 57 pc Singapore 90 82 c 92 80 c recitation, to an Technology ITEMS SOAK ETON Miami 84 72 pc 84 71 t Berlin 54 39 r 59 45 t Sydney 7361pc7562pc 67 Brand with GAP BERLE EVE Milwaukee 51 38 s 54 42 s Brussels 61 49 c 58 45 t Taipei 76 69 r 78 70 c atheist? 46 Feigning “Did you pivot SHOT URAL SHREW Minneapolis 71 48 s 71 55 s Buenos Aires 73 65 pc 76 66 r Tokyo 69 58 r 69 54 s 23 Hamper modesty today?” ads ACRYL I CPA I NT Nashville 70 51 c 70 48 pc Calgary 50 30 r 55 33 pc Toronto 48 30 s 54 34 s CLUES DOES 25 Pitcher’s delivery 47 Getup 68 Works hard FL IPSIDE MAHALO New Orleans 77 64 r 76 64 pc Dubai 95 79 c 91 74 pc Vancouver 57 43 c 57 43 pc DOMEST I CPARTNER

New York City 58 42 s 61 44 s Dublin 50 41 pc 49 34 sh Warsaw 61 40 c 61 46 c s IMP NI ECES ANNE Oklahoma City 73 50 pc 76 53 pc Edinburgh 49 38 pc 44 31 sh Zurich 59 40 c 57 45 t Solve this puzzle online and discuss it at WSJ.com/Puzzles. CPA ASTER GODS

The New WSJ Markets

Don’t be confused by today’s topsy-turvy market. KNOW Get on-the-ground facts and high-level analysis from our expanded team of specialists. WSJ Markets helps you stay in control. NOW Go to WSJ.com/Markets for data, breaking news and incisive commentary. ©2016DowJones&Co.Inc.Allrightsreserved.6DJ3481 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B8 | Thursday, April 14, 2016 THE WALL STREET JOURNAL. BUSINESS NEWS Cigarette Output Halts in India Valeant’s

Tobacco companies CEO Plans stop production over regulations requiring Deposition BY AUSTEN HUFFORD larger health warnings Michael Pearson, the outgo- BY PREETIKA RANA ing chief executive of Valeant Pharmaceuticals Interna- NEW DELHI—Tobacco com- tional Inc., will cooperate with panies in India halted ciga- a Senate committee investigat- rette production amid govern- ing increases in the prices of ment regulations requiring certain prescription drugs by larger and more graphic agreeing to appear at a depo- health warnings on packages. sition next week, according to The decision represents a the committee. sharp escalation in the conflict Mr. Pearson previously had between the industry and In- refused to appear at a deposi- dian authorities over rules tion, saying the committee had that require 85% of a pack to not provided enough informa- be covered with pictorial pub- tion on what subjects would lic-health messages that show be covered. In response, Sens. diseased lungs and other prob- Susan Collins and Claire Mc- lems caused by smoking. Caskill, the leading members ITC Ltd., VST Industries of the committee, said they Ltd. and Godfrey Phillips In- planned to initiate contempt dia Ltd. said they paused man- proceedings against Mr. Pear- ufacturing on April 1 due to son unless he cooperated. confusion over the new re- Wednesday, the committee quirements. British American said the contempt procedures Tobacco PLC owns roughly a would be postponed, pending third of ITC and VST, while his deposition with the panel. Philip Morris International The deposition is scheduled Inc. owns a quarter of Godfrey for Monday and a full Senate Phillips India. committee hearing is set for

Antismoking activists said SHAILESH ANDRADE/REUTERS April 27. the move was an attempt to Ashop in Mumbai. A cigarette production halt hasn’t led to shortages in India, where three big firms say they have adequate stockpiles. “Following discussions be- put pressure on regulators by tween the committee’s staff raising the economic stakes. The tobacco industry has The tobacco industry took health warnings have the po- dia has stood firm,” said New and his lawyers, Mr. Pearson The companies employ thou- fought back fiercely. Philip the government to court, filing tential of severely affecting the Delhi-based tobacco-control ac- looks forward to testifying at sands of workers and buy to- Morris mounted a costly, at least half a dozen lawsuits Indian farmers and Indian tivist Bhavna Mukhopadhyay, a deposition and the hearing,” bacco from millions of farm- yearslong—and ultimately un- challenging the rules. The in- companies with gains to the who was a member of a panel a spokesman for Mr. Pearson ers. Cigarette sales also are an successful—legal battle dustry argued that the en- unscrupulous elements who the government consulted be- said in a statement. important source of tax reve- against Australia’s so-called hanced warnings would de- manufacture and sell illicit to- fore drafting the new rules. A representative for nue. It is unclear if the halt led plain-packaging rule, which stroy the livelihoods of people bacco products,” according to The production halt hasn’t Valeant didn’t immediately re- to worker furloughs. prohibits the use of brand im- connected to tobacco sales and the report, a copy of which was resulted in any shortages. All spond to a request for com- A Health Ministry spokes- agery, colors and logos. would encourage smuggling. reviewed by The Wall Street three firms say they have ade- ment. On Monday, Valeant had woman said changes to the In India, where tobacco-re- The Karnataka High Court, Journal. It concluded the new quate stockpiles for now but publicly asked for Mr. Pear- new regulations weren’t being lated illnesses kill nearly a where the suits were filed, rules “will be too harsh.” declined to elaborate. son’s cooperation with the considered. million people a year, the gov- said this year it didn’t have Committee chairman Dilip- ITC and VST both said pro- committee. “The rule is very clear,” ernment first ordered pictorial the power to strike down the kumar Mansukhlal Gandhi de- duction would cease until Valeant has become a said a senior Health Ministry warnings in 2009. The warn- health regulations or impose a fended the report as “fair and there was greater certainty in poster child for criticism of official, who declined to be ings had to cover 40% of the stay. The cases are pending. unbiased.” how to proceed. Godfrey Phil- high drug prices and a target named. “If they don’t want to front of a cigarette pack. Meanwhile, the parliamen- The Health Ministry re- lips said “preparatory work of congressional inquiries af- produce, let them not pro- In late 2014, the Health tary committee that studied viewed the committee’s find- for implementation of new ter The Wall Street Journal re- duce.” Ministry changed the rules to the new rules issued nonbind- ings but decided to stick with graphical health warnings is ported last year that the com- Governments world-wide require tobacco makers to ing recommendations last the significantly larger warn- currently in progress.” It pany was buying the rights to have ordered changes to ciga- cover 85% of their packs— month urging the government ing labels, the senior official wouldn’t say when it planned certain treatments and quickly rette packaging in an effort to front and back—with such to reduce the size of warning there said. to resume output. raising their prices. discourage smoking. These warnings. The government de- labels to 50% from 85%. One of Government officials say In comments earlier sub- Last month, Valeant said it range from mandating grisly layed the implementation of the members of the committee they would have notified the mitted to the parliamentary was looking to replace Mr. images on warning labels to the new rules until April 1 of was a lawmaker who owns a companies if their stance had committee, Godfrey Phillips Pearson. He will stay on as barring manufacturers from this year, pending a parlia- tobacco company. changed. had said the new health warn- CEO and director until his suc- using their own logos. mentary study. “The proposed graphic “It’s commendable how In- ings were too disturbing. cessor is appointed.

THE SHORT ANSWER by Willa Plank and Joe Shoulak How popular are Yahoo’s products? Potential acquirers are circling Yahoo in part because its websites still bring in heavy traffic. Yahoo’s digital properties together garnered 204.4 million U.S. unique visitors in February, behind only Google and Facebook sites. Here's a look at traffic to Yahoo:

Yahoo is No. 2 among email services, behind Email Google's Gmail. Google Gmail Yahoo Mail Outlook (Outlook.com) millions of U.S. unique AOL email visitors Xfinity.com email in Feb. 2016 0 50 100 150 200

Yahoo ranks third in search/navigation. Google search Bing Yahoo search Ask network Get.smarter.com 0 50 100 150 200

News The Yahoo-ABC News network tops news/information sites. Yahoo-ABC News CNN network The Weather Company HPMG news NBC News Digital 0 50 100 150 200

Yahoo Finance ranks first among financial news sites. Finance Yahoo Finance Business Insider Forbes digital Dow Jones & Company Bloomberg 0 50 100 150 200

Sports The Yahoo Sports-NBC Network places fourth in the sports category. ESPN Fox/Sporting News CBS Sports Yahoo/NBC Sports Bleacher Report/Turner 0 50 100 150 200

Source: comScore Photos: Shutterstock (stack of money); iStock THE WALL STREET JOURNAL For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com GLOBAL FINANCE C3 | MARKETS DIGEST C5 | HEARD ON THE STREET C8

IMF Warns of Pulling Pensions Spreading Risk New York may scrap hedge-fund holdings PENSIONS | C2 IN THE MARKETS | C4

© 2016 Dow Jones & Company. All Rights Reserved. **** THE WALL STREET JOURNAL. Thursday, April 14, 2016 | C1

DJIA17908.28 À 187.03 1.06% S&P 2082.42 À 1.00% NASDAQ 4947.42 À 1.55% 10–YR. TREAS. À 6/32, yield 1.760% OIL $41.76 g $0.41 EURO $1.1274 YEN 109.32 See more at WSJMarkets.com OPEC Trims View 12%

For Oil Production 8

4 BY BENOIT FAUCON where projects have been de- ferred because of lower oil 0 OPEC said global oil pro- prices. duction outside the cartel is The new estimate doesn’t –4 falling more sharply than ex- represent a drastic revision to pected, as producers continue the group’s non-OPEC output –8 to retrench almost two years expectations. But oil traders ’10’09’11 ’12 ’13 ’14 ’15 after crude prices started what have been fixated recently on has been their sharp descent. how today’s lower prices are 12% Total assets, The Organization of the Pe- affecting output. Many pro- change from troleum Exporting Countries, a ducers have been retrenching 8 a year earlier group of sharply, leading to growing ex- COMMODITIES some of the pectations of a potentially 4 world’s big- sharp cutback in global supply gest pro- that could help balance mar- 0 ducers, forecast on Wednesday kets and buoy prices. that a long-expected contrac- While the steeper-than-ex- –4 tion in non-OPEC oil supply pected drop could be bullish was shaping up to be steeper for oil prices, OPEC also –8 than expected. In March, it warned of rising uncertainties ’10’09’11 ’12 ’13 ’14 ’15 forecast non-OPEC output over global oil demand. It also Source: SNL Financial

would fall by 700,000 barrels a said Iran is fast ramping up its CLOCKWISE FROM TOP LEFT: GETTY IMAGES; BLOOMBERG NEWS (2); GETTY IMAGES day this year. It now estimates output. Citigroup, under CEO Michael Corbat, was the only one of eight big banks to avoid a rebuke on regulators’ ‘living wills’ test for the drop will be 730,000 bar- The new forecast comes as navigating a potential bankruptcy. Wells Fargo, led by CEO John Stumpf, was flagged for ‘material errors’ in its submission. rels. oil producers such as Russia The downgrade was due to and Saudi Arabia prepare to lower expectations for oil pro- meet on Sunday in Doha, Qa- duction from China’s onshore tar, to debate a possible out- mature fields and further de- put freeze—which has been re- Banks Swap Bad-Boy Role clines in the U.S. and the U.K., Please see OPEC page C2 Citi has stumbled in wills,” in which regulators wasn’t rejected by either the regulators tackled this is- weighed in on banks’ plans for Federal Reserve or the Federal sue, they said Wells Fargo was recent years; Wells’s navigating a potential bank- Deposit Insurance Corp. the only bank to lay out a via- Financial Stocks Lead rebuke was a surprise Meanwhile, Wells Fargo & ble bankruptcy path. By Christina Rexrode, Co. was the only bank flagged Wednesday’s result rein- The roles re- Ryan Tracy for “material errors” in its forces a strong message that Dow to New 2016 High versed Wednesday for the and Emily Glazer submission, leading regulators regulators have been sending to BY SAUMYA VAISHAMPAYAN ings from J.P. Morgan Chase, banking industry’s star pupil to say the San Francisco firm Wall Street: The government AND RIVA GOLD the largest U.S. bank by assets, and a problem child. ruptcy. Citigroup, which has needs to significantly revise Please see ROLE page C2 ignited gains in financial Citigroup Inc. was tapped endured a number of regula- its plan. The Dow Jones Industrial shares Wednesday. J.P. Morgan as the surprise winner in the tory stumbles in recent years, The rebuke was a surprise, Heard on the Street: Citi Average rose tantalizingly was the biggest gainer in the preliminary verdicts on “living was the only bank whose plan in part because the last time shows path forward...... C8 close to 18000, boosted by a Dow, jumping $2.51, or 4.2%, rally in the banking sector that to $61.79. The KBW Nasdaq has trailed the broader market Bank Index of large U.S. com- this year. mercial lenders advanced 3.9%, The blue- paring the index’s 2016 decline Why China Makes Investors Anxious WEDNESDAY’S chip index to 9.2%. MARKETS advanced Regulators on Wednesday BY KEN BROWN “We are likely to see expects China’s connections the world’s markets. The 1.1%, or ordered five major U.S. banks much more of that,” said to the global financial sys- idea that China is still an en- 187.03, to to revise their plans for a po- It has been a calm couple Gaston Gelos, who oversaw tem to grow substantially in gine of growth, and that 17908.28, its highest level since tential bankruptcy under the of months in China’s finan- the International Monetary the coming years. there are big profits to be November. That is a sharp turn- Please see STOCKS page C4 cial markets. That is unlikely Fund’s Global Financial Sta- What is most worrisome made there, is dangerous for around from February, when the to last, and the turmoil is bility Analysis Report, which is investors’ short memories investors. Dow closed at a two-year low. more likely than ever to spill came out last week. The IMF of the havoc China played on During the recent calm in The Dow is now roughly 2% Striking Distance over into the world’s still- Chinese markets, the country away from its record close of Dow Jones Industrial Average fragile finan- expanded its influence on 18312.39 hit last May. The index UNHEDGED cial system. the global financial system 18000 Wednesday rose late last year following a Until last via deal making and the sharp drop in August, but failed 17908.28 summer, most opening of its huge domestic to match that record. 17500 of the world didn’t care bond market. “You don’t need financials to much about China’s markets Investors also have grown lead a bull market, but for the 17000 or banks. What mattered a interested again in China’s market to go up a bit, they have lot was how much its facto- wild stock market. Mean- to be at least OK,” said John 16500 ries produced and how much while, China’s crucial eco- Manley, chief equity strategist copper or iron ore it im- nomic-overhaul program has at Wells Fargo Funds Manage- 16000 ported. lagged behind, making it in- ment. The financial sector is the That changed in August creasingly likely the country second-largest in the S&P 500, 15500 when Beijing botched a cur- will struggle with more fi- behind the technology sector, rency devaluation. That was nancial upheaval, in particu- according to data from S&P Dow JFMAfollowed in January by a lar with its currency.

Jones Indices. Source: WSJ Market Data Group stock-market selloff that rip- KIM KYUNG-HOON/REUTERS On the deals front, Chi- Better-than-expected earn- THE WALL STREET JOURNAL. pled across the globe. A poster showed a new 100 yuan bank note in Beijing in January. Please see BROWN page C4 BlackRock Still Leads the Pack BY STEVEN RUSSOLILLO sets under management, resilience to the test once BlackRock is by far the again. When it reports first- Professional stock pickers world’s largest money man- quarter results Thursday, have done a pretty poor job ager. As many publicly earnings per share are fore- in this market. Shares of traded asset managers have cast at $4.30, down 12% companies that struggled with low interest from a year earlier. Revenue AHEAD OF employ them rates, rising competition and is expected to be unchanged THE TAPE haven’t done a broad shift to cheaper, pas- at $2.7 billion. Yet in volatile much better. sively managed investing op- markets, BlackRock has been A rare excep- tions, BlackRock has fared known to maintain fairly sta- tion: industry stalwart better than most. ble operating margins. BlackRock Inc. And it looks More than half of its as- The stock is roughly un- poised to continue bucking sets are concentrated in in- changed this year after fall- the trend. dex funds and exchange- ing slightly in 2015. By com- With $4.65 trillion in as- traded products, making parison, publicly traded U.S. BlackRock one of the biggest asset-management firms fell beneficiaries of the rise in 18% on average last year, ac- Passive Aggressive passive investing. And in a cording to Morningstar. Share-price and index volatile 2015 when many ac- Furthermore, BlackRock performance tive funds were bleeding as- has outperformed the indus- sets, BlackRock’s improving try on three-, five- and 10- S&P 500 BlackRock performance helped active year time horizons. And 150% equity products pull in a net fetching roughly 16 times projected earnings, it trades 100 $4.2 billion, the first full- year inflow since 2010. at a premium to its peers 50 That is saying a lot. Over but a discount to the S&P the past decade, some 80% 500.Plus,itsportsa2.7% 0 of large-cap U.S. equity mu- dividend yield, higher than tual funds underperformed the S&P. –50 the S&P 500, according to BlackRock remains a good S&P Dow Jones Indices. This investment when the rest of 2006 ’10 trend continued in the first its peers are in a hard place. Source: FactSet quarter. THE WALL STREET JOURNAL. That will put BlackRock’s Email: [email protected]

INDEX Credit Markets...... C6 Exchange-Traded Funds...... C8 Heard on the Street...... C8 Mutual Funds...... C8 Cash Prices...... C8 Currency Trading...... C5 Finance Watch...... C3 IPO Scorecard...... C7 New Highs & Lows...... C7 Commodities...... C6 Dividend News...... C8 Global Finance...... C3 Money Rates...... C7 Stock Listings...... C7 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C2 | Thursday, April 14, 2016 ** THE WALL STREET JOURNAL. MONEY & INVESTING Depomed Faces an Uphill Slog on Starboard Campaign Until last Thursday, De- of the shares of a California rectors, effectively limiting rent board. (The deadline to pany’s shareholders back, tently applied the unbun- pomed Inc. probably thought corporation can call a special board challenges to annual nominate directors for the the proposal to move to Del- dling policy, partly because a hoped-for move to Dela- meeting to replace directors. meetings. 2016 Depomed annual meet- aware, at least as currently it is subject to interpreta- ware would cure its vulnera- Early last week, Depomed Depomed’s timing turned ing already had passed.) formulated, seems likely to tion, and indeed Depomed bility to a hostile takeover. said in a regulatory filing out to be bad. It said last Depomed responded in a be doomed. That is thanks in had aimed to seek approval That is that at its May annual meet- week that the move to Dela- statement Friday welcoming part to the Securities and as a package. when Star- ing it would propose to ware wasn’t “a response to “open communications with Exchange Commission. But with Starboard’s com- board move its incorporation to any specific attempt to ac- The SEC requires that plaints spotlighting the gov- Value LP Delaware. Depomed said the quire control known to our Unless there is a matters put to shareholders ernance changes, in my view, surfaced primary reason was “the board.” be “unbundled.” That means the SEC is likely to push for with almost prominence and predictabil- But it turns out Starboard quick settlement, a if a single corporate action separate votes. That would DEALPOLITIK 10% of De- ity of Delaware corporate already had accumulated al- lengthy board fight involves several substantive turn a boring proposal on an RONALD pomed law.” Such a move would most 10% of Depomed’s changes, each one needs a arcane question of incorpo- BARUSCH shares and eliminate the possibility of a stock, which the activist in- seems inevitable. shareholder vote. ration into a vote on funda- a plan to midyear replacement of the vestor announced in a regu- Under the unbundling pol- mental governance issues. forceaspe- board. latory filing last Thursday, icy, the SEC could ask De- And in the current envi- cial shareholder meeting to Delaware law gives corpo- along with a broadside its shareholders” but adding pomed to separately seek ap- ronment, with activists as- remove and replace the en- rations more flexibility; after against the proposed move that Starboard “has not at- proval for the increase in the cendant, it seems unlikely tire board. the migration, the threshold and a number of other busi- tempted to hold any discus- threshold for shareholders to shareholders will vote to Depomed’s takeover vul- to call a special meeting ness and governance issues. sions with the company.” call a meeting and for the limit their rights. nerability, which Horizon would be increased to 25% of Plus, it started the process Unless there is a quick elimination of the right to —Mr. Barusch is a retired Pharma PLC tried (unsuc- the shares. More important, to call a special meeting un- settlement, a lengthy fight call a meeting to replace di- M&A lawyer who writes cessfully) to exploit last year, shareholders wouldn’t in any der Depomed’s California over the Depomed board rectors, in addition to asking about deal making for the stems from its incorporation event be able to call a spe- governance documents to re- seems inevitable. But regard- them to bless the move. Journal’s MoneyBeat blog at in California. Holders of 10% cial meeting to remove di- move and replace the cur- less of which side the com- The SEC hasn’t consis- wsj.com/moneybeat. The Art and Science Of Bank Regulation BY JACOB M. SCHLESINGER tainly have sparked a political backlash from lawmakers who When two sets of regulators felt the central bank went too pored over the books of two easy on the megabanks last Wall Street titans, they time around. reached very different conclu- One challenge for regula- sions. tors issuing these grades is Federal Reserve officials how they themselves define felt Morgan Stanley had success. Nobody can know un- flunked the assignment to til the next crisis whether they shed its “too big to fail” label, did enough. Even within the but said Goldman Sachs FDIC, fissures appeared, with Group Inc. passed. Federal De- the top two officials striking a posit Insurance Corp. officials different tone. cleared Morgan Thomas Hoenig, the FDIC ANALYSIS Stanley, but vice chairman, is inside the failed Goldman. living wills process yet often The split critiques it like an outsider. He shows an important point took office four years ago, in- about the “living wills” drills sisting the only real answer facing eight of America’s larg- was breaking up the biggest est banks, ordered to show banks. they have a contingency plan While he has failed to per- allowing them to go bankrupt suade policy makers to go that without repeating the 2008 far, he keeps trying to push trauma of taxpayer bailouts. the debate in that direction. Despite thousands of pages of He issued his own critical ver- plans and analysis, this exer- cise is as much art as science, One challenge for as much about discretion, in- terpretation and emphasis as regulators is how it is about precise calculations. they themselves KENA BETANCUR/AFP/GETTY IMAGES While the spotlight shone New York Police Department officers worked in Manhattan’s Times Square after a suspicious-package call on March 28. Wednesday on how the banks define success. fared under the regulatory grading system, the back story Pension May Exit From Hedge Funds was that regulators also were dict on the verdicts, saying he struggling to fulfill their own didn’t feel they went far difficult assignment, one even enough. “The goal to end too BY MIKE VILENSKY must invest in responsible and fees and have pro- Blasio said “our votes are harder to score. big to fail…remains just that: AND BRODY MULLINS secure assets,” she said in a duced tepid returns. based on our fiduciary respon- This was the second time only a goal,” Mr. Hoenig said. statement. The New York City Employ- sibility to members. Analysis regulators offered banks feed- Martin Gruenberg, the FDIC New York City’s biggest The vote comes after other ees’ Retirement System has shows that our pension funds back on their living-wills pro- chairman, said “today’s action public employee pension fund large public pension funds in roughly $55 billion in as- have not seen better risk-ad- cess, created by the 2010 is a significant step toward is poised to vote Thursday to California and Illinois have sets for more than 300,000 in- justed returns despite the high Dodd-Frank Act as part of achieving that goal.” begin pulling its investments taken similar steps. A large dividuals. Of that total, about cost of management fees in their new mandate to bullet- The living-wills process is from hedge funds, the latest pension fund in Ohio recently $1.4 billion is invested in portfolios that include hedge proof the financial system just the first round of regula- move by a large pension plan took testimony on the topic. hedge funds. Among the hedge funds.” from another meltdown. The tory grading the big banks to scrap an investment path New York City’s other four Thevotecomesafew 2014 round saw an even big- face this spring. By the end of that once promised big re- pension funds have for several months after the American ger split between the two June, the Fed is supposed to turns. months been undergoing a re- Federation of Teachers con- agencies. Back then, the FDIC issue its assessment of how The move by the New view of their asset allocation. $55 billion cluded an analysis of 11 public was willing to flunk nearly ev- banks this year have fared un- York City Employees’ Retire- Those funds represent teach- Assets of the New York City pension plans, including the ery bank, while the Fed didn’t der the annual “stress test,” ment System, which says it ers, police, firefighters and the Employees’ Retirement System one in New York City, that brand a single plan “not credi- another strand in the Dodd- is the nation’s largest pen- board of education. found the funds paid an aver- ble,” the official jargon for a Frank safety net. The stress sion fund for municipal em- “This is not the end of age of $81 million in an- blueprint so flawed it triggers tests are intended to force ployees, is expected to be hedge funds, but it would funds that have managed their nual fees. a process that could lead to banks to show their business approved in a majority vote cloud their future and ability money are D.E. Shaw & Co. The report also found that sanctions. plans are strong enough to by its trustees, according to to hold stakes,” said John Cof- and Fir Tree Partners. for each of the pension plans, This time, the central bank withstand severe economic people familiar with the in- fee Jr., a professor at Colum- The move in New York City the portion of their portfolio issued five not-credible edicts. shock. ternal discussions. bia University’s School of Law requires authorization by a invested in hedge funds fared Two years ago, the Fed felt it If officials were confident “Hedge funds are charging and a hedge-fund expert. vote of the 11-member board worse than the portion of was too soon to deliver that the stress tests really worked, exorbitant fees for high-risk Any step toward divesting of trustees. The board includes their investments not invested extreme conclusion. But offi- then living wills wouldn’t be and opaque investments,” said from hedge funds—which can a representative of New York in hedge funds. cials now seemed to feel it necessary. But in the postcrisis Letitia James, the city’s public take years—would be a big Mayor Bill de Blasio, the city’s Representatives of the was appropriate, even as they world, the default mode is advocate, and one of the trust- win for their opponents, in- comptroller and others. The teachers union presented their went out of their way to high- more protection, just as dereg- ees of the pension fund. cluding the leaders of city’s comptroller is the in- findings to the staff and some light what they had considered ulation and trusting markets “As financial stewards of some labor unions, who say vestment adviser to the fund. trustees of the New York City progress. Any different conclu- to police themselves were the public employees’ money, we hedge funds are charging large A spokeswoman for Mr. de pension plan. sion would also almost cer- guiding principles before.

try’s biggest bank by market capital requirements, restric- ROLE capitalization. tions on growth or activities, OPEC Citigroup has “been much or other sanctions. more aggressive in simplifying Two other firms, Goldman Continuedfromthepriorpage their structure” compared Sachs Group Inc. and Morgan Continuedfromthepriorpage will reward banks that shrink with other banks, said Charles Stanley, received split deci- jected so far by Iran—in an and simplify. It also signals that Peabody, an analyst at re- sions from the two agencies. effort to revive flagging crude regulators believe it is possible search firm Portales Partners. At Citigroup, CEO Michael prices. for a large, complex bank to de- “Wells has been getting more Corbat said the result re- In its closely watched velop a credible bankruptcy complex.” flected “a rigorous, firmwide monthly report, OPEC cut its plan as required under the 2010 While regulators didn’t cite process” across the bank, and forecast for 2016 oil-demand Dodd-Frank law. Wells Fargo’s size as the rea- that the bank would address growth by 50,000 barrels a Citigroup, the inventor of son for its failure, in their as- the regulators’ feedback. day. Demand for the commod-

the financial supermarket and sessment they said the mis- ANDREW HARRER/BLOOMBERG NEWS “Citi has become a simpler, ity now will rise by 1.20 mil- known for its sprawling opera- takes in the submission “call Regulators were especially frustrated by the flaws in Wells smaller, safer and stronger in- lion barrels a day to 94.18 mil- tions, has cut more than 26% into question the extent to Fargo’s plan after giving the bank a favorable verdict in 2014. stitution since the financial lion barrels a day, according to of its assets since its peak in which there was appropriate crisis and it is critical that Citi its projections. 2007. Once the largest U.S. internal review and coordina- able verdict they gave the bank tive and valuable to our reso- can be resolved without the The downgrade is under- bank, it is now fourth as tion.” in 2014 was partly based on the lution planning process,” the use of taxpayer funds and pinned by slower economic ranked by assets. Analysts and others who understanding that the firm bank said. without adverse systemic im- momentum in Latin America Wells Fargo, on the other closely watch the regulatory would continue to make prog- Overall, five of the eight big pact,” Mr. Corbat said. and uncertainties in Chinese hand, has expanded more process say that sort of lan- ress, people familiar with the U.S. banks that were required While Citigroup’s plan fared growth, OPEC said. than 37% since it bought Wa- guage suggests another mes- matter said. The Fed and FDIC to submit living wills were or- best among the eight, regula- “There is great uncertainty chovia in 2008, taking on assets sage: Don’t get complacent. In said they have worked closely dered to make significant revi- tors said that, among other as to whether weakening eco- and adding new businesses to addition to the errors in Wells with the banks to explain their sions. That group is J.P. Mor- things, it needs to develop a nomic activity in Latin Amer- its core Main Street franchise of Fargo’s plan, regulators expectations for the plans. gan Chase &Co.,Bank of more detailed playbook outlin- ica and signals of a slowdown lending and deposits. It is the also cited other deficiencies Wells Fargo said the firm America Corp., Bank of New ing how it would go through in China will be reflected in third-biggest U.S. bank by as- and broadly judged that it had was disappointed in the re- York Mellon Corp. and State various stages of the bank- oil-demand data, especially for sets now. previously laid out a path to a sults and will address regula- Street Corp., in addition to ruptcy process or it could end China,” the organization said. Investors have largely en- viable bankruptcy plan but tors’ concerns. Wells Fargo. up in the same spot as Wells In particular, the Brazilian dorsed the strategy: As its then failed to follow it in mul- Regulators “acknowledged Regulators said those firms Fargo next year. economy, the seventh largest share price has climbed in re- tiple respects. the continued steps Wells had until October to present On Wednesday, Citigroup’s in the world, has been hit by a cent years—and some of its Regulators were especially Fargo has taken in enhancing plans regulators find accept- shares rose 5.6%, to $44.25, bribery scandal involving peers have stalled—Wells frustrated by the flaws in Wells its resolution plan and we able, or the agencies or regu- and Wells Fargo gained 2.6%, state-owned oil giant Petro- Fargo has become the coun- Fargo’s plan because the favor- view the feedback as construc- lators could impose higher to $49.03. bras. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | C3 GLOBAL FINANCE India’s Banks Frustrate Investors Caspersen

Billionaire Hinduja which also included his Mum- low enough to generate at- dia. Mr. Goel said many banks Is Likely bai-based brother, Ashok Hin- Heading Higher tractive returns, partly be- hope the global economy will brothers want to buy duja. Nonperforming assets at Indian cause of fears of a backlash. pick up, allowing borrowers to To Settle distressed assets but India has a bad-debt prob- banks When projects are overbur- afford repayments. lem. The country’s banks are dened with interest repay- Gopichand Hinduja said, 8% say they hit obstacles stuck with record levels of ments, approval issues and “Destination-wise, India is to- nonperforming loans after Government-owned banks economic pressures, lenders day the best place to make in- Case Soon BY SHEFALI ANAND BY CHRISTOPHER M. MATTHEWS lending money to project de- 6 and founders must decide how vestments,” given that coun- AND DEBIPRASAD NAYAK velopers for power and infra- much of a “haircut” they can tries such as China are facing structure projects that stalled take, Ashok Hinduja said. economic challenges. Andrew W.W. Caspersen, a MUMBAI—Two of the bil- partly because of delays in 4 Bankers worry that if the He said Prime Minister Nar- former Wall Street executive lionaire brothers who run U.K. government approvals. Mean- All banks poorly performing projects re- endra Modi, who came to charged with masterminding a conglomerate Hinduja Group while, commodity companies cover, the media and govern- power in 2014, has raised In- $95 million fraud, is likely to say they want to buy dis- also are struggling to repay 2 ment investigators will say, dia’s profile among global in- settle his criminal case in the tressed assets in India but their loans after a plunge in “you’ve made a bad decision vestors but hasn’t been able to next 60 days, his lawyer said find that banks and founders global commodity prices. Private banks in the past,” said Adarsh deliver on all of his promises, Wednesday. holding the projects are reluc- Nonperforming assets at 0 Parasrampuria, an analyst at such as making it easier to do “It’s not the most triable tant to let go. Indian banks at the end of De- FY ’11 ’12 ’13 ’14 ’15 ’16* Nomura. business. India came in 130th case,” attorney Paul Shechtman “I would have loved to in- cember were 6% of total loans, The Hinduja brothers say of 189 countries ranked by said. vest more and more in India,” almost doubling in the past *Fiscal years end in March. Figures for FY the government should tell ease of doing business, in a The Wall Street Journal re- said London-based Gopichand three years, rating firm ICRA 2016 up to Dec. 31. bankers that there would be recent World Bank study. ported last week that Mr. Hinduja, one of the four Ltd. estimates. Sources: Banks, ICRA research no repercussions. “Policy has The elder Mr. Hinduja said Caspersen is cooperating with brothers who run the group, Indian banks are holding THE WALL STREET JOURNAL. to be improved…so that the getting a business project ap- the Manhattan U.S. attorney’s which has $25 billion in an- about $200 billion in stressed management of the bank also proved requires a lot of luck office, which filed the criminal nual revenue and controls assets, analysts at the Indian Investors such as feels comfortable,” Gopichand in India. “I will consider it is charges. Mr. Shechtman said more than 30 companies, unit of Nomura Group esti- Gopichand Hinduja, 75 years Hinduja said. easy to do a business if, Wednesday the case was un- mainly in India, Europe and mate. old, and Ashok Hinduja, 65, Banks also don’t want to [when] I send a letter for any likely to go to trial but stopped Africa. Bad debt is “the biggest want to buy these stressed as- sell their loans cheaply be- good proposal, I should get short of saying his client would “[Our] grievance is only challenge faced by the current sets and projects and turn cause it would erode their net the answer in a week or 15 plead guilty. one: Whether it is stressed government,” Arvind Pana- them around for a profit. worth, analysts say. “State- days,” rather than having to In charges filed in late projects, whether it is in infra- gariya, vice chairman of Niti However, the elder Mr. Hin- owned banks don’t have run around to different minis- March, the Justice Department structure, it’s very difficult” to Aayog, a federal economic duja said they find lenders enough capital to absorb the tries, he said. and Securities and Exchange invest, he said in an interview planning agency, said at a re- and founders of Indian compa- losses,” said Vishal Goel, a —Gabriele Parussini Commission accused the for- with The Wall Street Journal, cent industry event. nies unwilling to sell at prices banking analyst at UBS in In- contributed to this article. mer Park Hill Group partner of trying to solicit about $95 mil- lion with a sham investment opportunity and then losing China Stock Listings Draw Takeover Plays nearly $15 million in aggressive stock options trading.

SHANGHAI—One of China’s best-performing stocks during Shell Shock Andrew Caspersen the past year was struggling More firms are going public in hasn’t entered a plea Chongqing New Century China by merging with already- to the federal Cruise Co.—and that speaks listed companies, what is called a volumes about the challenges ‘backdoor' listing. charges. facing the world’s second-larg- 70 est equities market. BACKDOOR LISTINGS Shares of the riverboat op- Mr. Caspersen has been Disclosed 60 erator have gained nearly checked into the secure unit at 300% over the past 12 Completed 50 New York Hospital in Manhat- months—versus a 9% fall for tan since being released from its exchange’s benchmark in- 40 custody on March 28, accord- dex—even though New Cen- ing to an order on Monday that tury estimates it lost 31.6 mil- 30 modified Mr. Caspersen’s bail lion yuan ($4.9 million) last conditions. The order didn’t 20 year as river cruising fell out specify how long he has been of favor. 10 hospitalized or the reasons for What turned the stock into his hospitalization. a winner, and its father-and- 0 Mr. Shechtman, a well- son management team into bil- known New York defense attor- ’112010’12 ’13 ’14 ’15 lionaires, was a takeover bid ney, appeared at a short court from a game maker that Source: Wind Info hearing Wednesday morning in wanted its stock listing—not THE WALL STREET JOURNAL. Manhattan federal court to dis- its seven ships. cuss the SEC case against his Other unlikely winners dur- 1994 as a bet on tourist de- client. During the hearing, he ing the past year include mand to see the Yangtze told U.S. District Judge Richard chemical-products maker Wei- River’s famed Three Gorges. Berman that his client was un- fang Yaxing Chemical Co. and He expanded it to a fleet of likely to go to trial on either commodities trader Jilin seven luxury cruisers, but the civil or criminal charges Chengcheng Group Co., whose company reports show its rev- against him. shares have climbed 81% and enue topped out as the river Mr. Caspersen hasn’t en- 93%, respectively, even though got crowded with competitors. tered a plea to the federal both firms lost money for two PAUL TRAYNOR/ASSOCIATED PRESS The company suspended trad- charges or commented publicly yearsinarow. A bridge in Shanghai displays figures for the Shanghai, top, and Shenzhen stock exchanges. ing in its shares in October since his March 26 arrest. Weifang Yaxing didn’t re- 2014 pending a “major asset His former employer, PJT spond to requests for com- that it had postponed two Although every market has Enthusiasm for shells restructuring.” Partners, which owns Park Hill, ment. Jilin Chengcheng de- measures supposed to make its share of backdoor listings, picked up last month, after New Century flagged a said in a securities filing late clined to comment. listing easier: a revamp of ini- in China they have long helped measures that would make quarterly loss last October. Friday that its internal review The odd outperformance of tial public offering rules and a companies sidestep a particu- listing easier appeared to be Days later, it announced a re- of Mr. Caspersen’s dealings shares of often-struggling new board that some Chinese larly challenging IPO system, delayed. verse takeover by former New found he conducted a number companies is the latest quirk companies delisting from the where the government strictly China Premier Li Keqiang York Stock Exchange-listed of unauthorized and unlawful in China’s markets, whose U.S. markets had hoped to join. controls the number and pric- didn’t mention a long-awaited game maker Giant Interactive transactions beginning in late combined capitalization was So strong is the demand for ing of companies going public. IPO overhaul in his two-hour Group Inc., which valued the 2014 through March 2016. around $7.8 trillion in April, such takeover candidates these Shanghai data provider state of the union address on combined company at 13.1 bil- The company said no clients the second-biggest pool of days that some investors are Wind Information has a 73- March 16, widely taken as a lion yuan. When its shares re- of Park Hill were parties in stocks after the U.S. pouring money into poorly stock roster of such backdoor- sign the measures were on the sumed trading for the first those deals, but a “small num- Such companies are central performing companies they listing prospects, including an- back burner. A few days later, time in more than a year, they ber” of apparent victims, con- to a minimerger trend that has hope will be snapped up as nounced deals like New China’s important five-year rocketed the maximum 10% sisting of Mr. Caspersen’s taken hold as Chinese compa- listing vehicles and get stock Century. Those stocks are up plan also didn’t include either per session for three weeks. friends and relatives, invested a nies reckon with multiyear pops. an average 34% since August, IPO changes or a new Shang- New Century will dump its total of $14 million, in addition waits to go public in the tradi- Jiang Bingbing, a 37-year- compared with a 5% gain for hai exchange that many com- cruise business after the to the $25 million contributed tional way. That has increased old legal compliance officer at the Shanghai Composite Index panies had been counting on merger and will benefit by by a charity backed by Moore the popularity of “backdoor” an asset-management firm in and 16% for the Shenzhen to host a flood of startups as switching from a struggling Capital founder Louis Bacon. listings, by which private com- the northern city of Jinan, said benchmark. well as companies moving sector to one with much big- Mr. Caspersen’s alleged vic- panies clamber onto markets she watches regulatory notices Demand extends to a group from U.S. exchanges to home ger growth potential, said New tims included college friends, by combining with already from the smallest companies of companies that failed to markets, where valuations Century securities department his brothers and mother. The listed firms—often those for signs they might be dis- turn a profit two or three tend to be higher. representative Xiang Kaiquan. Journal has reported that other whose operational woes have tressed and in need of a life- years in a row, putting some at Within days, several Chi- Mr. Peng and his son, who investors were contacted about pushed down share prices to line. One recent investment, risk of delisting. Those 50 nese brokers made lists of po- control around two-thirds of the sham deal but backed out affordable levels. which she declined to name, “special treatment,” or “ST,” tential shells and advised cli- the company, now hold stock and that authorities suspect The trend is expected to ac- “may turn out to be a real stocks have risen an average ents to move money into them. worth 5.99 billion yuan. the magnitude of the alleged celerate after the Chinese gov- deal, because the firm just sus- 14% since August, according to Onetime tour guide Peng Ji- —Yifan Xie scam may be considerably ernment last month signaled pended trading,” she said. Wind data. anhu founded New Century in and James T. Areddy larger.

homes were worth at the end of sion on whether to reduce bor- 2015, according to real-estate rower principal is “the most Finance data firm CoreLogic, down from challenging evaluation the 12 million in 2009. agency has undertaken during Watch Under the plan, which was my time as director.” reported previously in The Wall —Joe Light Street Journal, borrowers would be eligible to have some of their REGULATION mortgage principal forgiven if MORTGAGES they have a loan whose balance Acting Chief to Leave is less than $250,000, the peo- U.K.’s FCA on July 1 Fannie, Freddie Ready ple said. Borrowers would need Tracey McDermott, acting Principal-Cut Plan to owe more than their homes chief executive of the U.K.’s Fi- Fannie Mae and Freddie Mac are worth and already be at nancial Conduct Authority, is set could forgive mortgage principal least 90 days delinquent on to leave the regulator when its for thousands of borrowers un- mortgage payments. After the new permanent head starts on der a new plan to be rolled out reduction in principal, they still July 1. by their regulator, the Federal would owe 15% more than their Ms. McDermott, a former di- Housing Finance Agency, as homes are worth, the people rector of enforcement and finan- soon as Thursday, according to said. cial crime for the FCA, became people familiar with the matter. The strict parameters of the acting head of the markets reg-

The plan is likely to draw ire program are likely to make it ulator following the departure of MATTHEW LLOYD/BLOOMBERG NEWS from consumer advocates who much smaller than some con- Martin Wheatley in September Tracey McDermott oversaw many of the U.K. regulator’s high-profile cases against banks and brokers. will say it is too small to ad- sumer advocates, who have 2015 and had been considered a dress the problem, as well as called for principal reduction for strong internal candidate for the Andrew Bailey was named Authority, in 2001, she became cluding the large fines meted from some taxpayer advocates years, had hoped for and likely permanent position. new FCA CEO on Jan. 26. the permanent director of en- out for fixing the London inter- frustrated that the bailouts keep limit the number eligible for the It was announced in January Ms. McDermott is a lawyer forcement and financial crime in bank offered rate. coming years after the housing program to fewer than 40,000 that she had withdrawn her can- who specialized in commercial 2012. A spokeswoman for the FCA crisis ebbed. borrowers, the people said. didacy the previous month but litigation. She oversaw many of the said Ms. McDermott didn’t have In all, about 4.3 million bor- FHFA Director Melvin Watt in would remain acting head until a After joining the FCA’s prede- regulator’s high-profile punish- any immediate plans. rowers owed more than their the past has said that the deci- new CEO was in the post. cessor, the Financial Services ments of banks and brokers, in- —Darren Lazarus For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C4 | Thursday, April 14, 2016 **** THE WALL STREET JOURNAL. IN THE MARKETS For J.P. Morgan, Being Big Isn’t So Bad

Sometimes, the best de- banks, save for Wells Fargo, banking revenue fell by 24% fense is indeed a good of- have traded below book val- from a year earlier, as equity fense. Amid rising calls for ue. and debt underwriting plum- big banks to be broken up, That glass-half-empty meted amid global market and extreme market anxiety view started to reverse in re- turmoil. Fixed-income trad- over the health of U.S. lend- cent weeks. J.P. Morgan’s re- ing revenue fell by 13%. That ers just weeks ago, J.P. Mor- sults rightly add to the posi- wasn’t so bad given tough gan Chase struck back Wed- tive momentum. conditions and was some- nesday with solid first- Granted, investors should- what better than expected. quarter results. n’t get carried away. Banks But plain-vanilla banking The bank, the biggest U.S. still must contend with su- operations performed admir- lender by assets, said net in- perlow interest rates and ably. Total loans grew by 11% come of $5.5 billion fell 7% flagging global growth. from a year earlier. Comm- from a year Regulation also remains ercial and industrial loans earlier— an issue. Although J.P. Mor- were up 9%. Consumer-loan which was gan last year shrunk its bal- growth accelerated to 12%. substantially ance sheet to lessen a cap- Even if there are no fur- better than ital-surcharge burden, it still ther rate increases this year, expected. must carry a heavy load. J.P. Morgan figures that net

HEARD ON The re- And investors have to be SAUL LOEB/AFP/GETTY IMAGES interest income still will rise THE STREET sults bolster mindful that this can grow if J.P. Morgan Chase posted solid first-quarter results that sent its stock higher. by $2 billion due to lending AARON the argument there are any missteps. growth. BACK that inves- The release Wednesday of could result in higher capital theoretical cost of capital. gests that there could be That shows the bank con- tors were regulators’ reactions to the surcharges among other, Over the past six quarters, some more room for them to tinues to manage its way overly pessi- banks’ “living wills” under- even more-onerous potential the bank’s return has aver- run. Adding to the case for through tough times, con- mistic about big banks early scored this. J.P. Morgan’s outcomes. aged just 10.2%. That doesn’t the stock was the way the trolling what it can. J.P. Mor- on in 2016, fearing that a cri- plan was found to be not The result of all this is justify a large premium. bank managed to offset gan can’t, and shouldn’t, sis was brewing and that the credible. It now has until that J.P. Morgan’s first-quar- It does, though, justify the weakness in some areas with swing for the fences in this firms would be slammed by Oct. 1 to address some def- ter return on equity still was bump up in J.P. Morgan’s strength elsewhere. kind of environment. Getting it. Shares of all the big iciencies. Failure to do so only 9%, which is below its shares Wednesday, and sug- First-quarter investment- on base is enough.

its highest level since Novem- Emerging STOCKS ber amid speculation about a potential agreement on a pro- duction freeze at a meeting of Markets’ ContinuedfrompageC1 producers in Qatar on Sunday. 2010 Dodd-Frank law or face Chinese exports expanded possible regulatory sanctions, in March for the first time in Risk May though the move did little to nine months, data from the dent shares. General Administration of Cus- The bank-fueled gains re- toms showed, helping soothe flect one issue the broader concerns about the world’s Spread market faces as it climbs. Pro- second-largest economy. But jections for first-quarter earn- global growth concerns linger. BY WILLIAM MAULDIN ings are bleak, so results that “Oil and China have stabi- beat expectations could propel lized markets at the mo- Debt burdens of big compa- stocks. But even if earnings ment…but I still expect quite a nies in China and other clear a lowered bar, the results bit of volatility,” said Philippe emerging markets could are expected to be far from Gijsels, chief strategist at BNP spread trouble across borders rosy, which could create head- Paribas Fortis. “It only takes a and weigh on the winds for a rally that is couple pieces of bad news DEBT global financial stretching into its third month. from China to make people system, the Inter- “Expectations are lowered, worry again.” national Monetary The Wall Street Journal Fund warned on Wednesday. Dollar Index, which measures The ballooning debt of gi- the greenback against a basket ant companies in fast-growing 2% of 16 currencies, rose 0.7%, economies is of particular con- The Dow Jones Industrial snapping a three-day losing cern because of their close ties Average’s distance from its streak. to banks in those countries, as record close of 18312.39 Stocks in the eurozone got a well as the national govern- lift as the euro fell. The com- ments likely on the hook to mon currency declined 1% bail them out. and then they are met. That’s a against the dollar to $1.1274. In China, fully $1.3 trillion short-term game in my mind,” Japan’s Nikkei Stock Aver- of corporate loans, or one-sev- said Anwiti Bahuguna, senior age, which ended 2.8% higher

enth of the total, are owed by SHAWN THEW/EUROPEAN PRESSPHOTO AGENCY portfolio manager at Columbia on Wednesday as the dollar companies whose profits don’t The global financial system could be pressured by emerging-market woes, says the IMF’s José Viñals. Threadneedle Investments, rose against the yen, rose a cover their interest payments, which oversees $472 billion. further 2.6% early Thursday. a problem that could trigger IMF’s measure of emerging- oil producers and miners. of new issues. For stocks to rally over the The dollar rose 0.7% against bank losses equal to 7% of market risks nearly to the “Commodity-related firms “Debt issuance has been longer run, it would take more the yen to ¥109.3240 on gross domestic product if the peak level of the 2008-2009 fi- are cutting capital expendi- substantial in sectors suffering optimistic corporate guidance, Wednesday. Gains in other issue isn’t addressed, the IMF nancial crisis, while the total tures sharply as high private from price pressures, overca- including a sense of when Asian markets were less sharp said in a report on global fi- risk to global financial stabil- debt burdens reinforce risks to pacity and rising balance- companies expect their earn- early Thursday. South Korea’s nancial stability. ity is estimated to be the credit and banks,” the IMF sheet weakness, namely the ings to rise, as well as better Kospi was up 1.2%, Hong “Despite progress on eco- highest in seven years. said. real-estate, mining and manu- economic data, Ms. Bahuguna Kong’s Hang Seng Index was nomic rebalancing, corporate In advanced economies, Many economists blame the facturing sectors,” the IMF said. up 0.9%, Australia’s S&P ASX health in China is declining banks are coming under strain weakness in commodities on said. Alcoa kicked off first-quar- 200 was up 0.7% and the due to slowing growth and from low profitability because China, a top consumer of raw The bonds in turn may be ter results in the U.S. on Mon- Shanghai Composite was up lower profitability,” said José of problems with their busi- materials that is seeking to spreading risk back to finan- day with gloomy results. The 0.1%. Viñals, the IMF’s top financial ness models, low or negative shift from a manufacturing cial firms. Data from clearing- aluminum producer said earn- Treasury prices rose, with counselor. interest rates and rock-bottom powerhouse to an economy house Chinabond indicate ings fell 92% and it could cut the 10-year yield falling to Meanwhile, in Brazil and valuations that could hurt driven more by technology, commercial banks, insurers as many as 2,000 jobs as it 1.760% from 1.781%. Russia, national champions their ability to raise capital, services and consumerism. and funds accounted for two- struggles with weak aluminum have been hit by falling com- the IMF said. Banks with im- But as souring loans thirds of outstanding corpo- prices. AUCTION RESULTS Here are the results of Wednesday's Treasury modities prices and economic paired business models, espe- started accumulating at Chi- rate-bond holdings at the end The S&P 500 advanced auction. All bids are awarded at a single price at the market-clearing yield. Rates are determined by the contractions. cially in Europe, account for nese banks in the past couple of last year. 20.70 points, or 1%, to 2082.42 difference between that price and the face value. “The sharp fall in commod- 15% of total banking assets in of years, regulators sought to “The Chinese authorities on Wednesday, and the Nasdaq NINE-YEAR, 10-MONTH NOTES ity prices has exacerbated developed economies, the shift credit risk to the stock are aware of these vulnerabili- Composite rose 75.33, or 1.5%, Applications $55,106,602,900 Accepted bids $20,140,758,900 both corporate and sovereign fund said. and bond markets. Then, ties and are putting in place to 4947.42. The Stoxx Europe " noncompetitively $7,636,900 vulnerabilities, keeping eco- Sharply lower commodities cracks in the stock markets measures to deal with the 600 jumped 2.5%. Bank stocks " foreign noncompetitively $0 Auction price (rate) 98.739410 nomic and financial risks ele- prices are weighing on parts appeared last summer, expos- over-indebted corporates,” Mr. in the pan-European index (1.765%) vated,” Mr. Viñals said. of advanced economies, but ing deep regulatory flaws in Viñals said. “Yet the magni- surged 6.3%. Interest rate 1.625% Bids at clearing yield accepted 98.52% The rising debt and slower the effect is more pronounced the country’s markets, and tude of these vulnerabilities In commodity markets, U.S. Cusip number 912828P46 growth in developing econo- in less diversified emerging now the bond market appears calls for an ambitious policy crude oil slipped 1% to $41.76 a The notes, dated April 15, 2016, mature on Feb. 15, mies have helped boost the markets that are dominated by strained as well amid a flood agenda.” barrel, a day after settling at 2026.

Group as China’s overseas it tries to spread the risk cal tool to be used by the BROWN buyer of the moment. from its credit binge. central government. Spreading Volatility Fosun stepped back from While credit ratings and Even without the mar- As China's markets have opened up to global investors, trading has deal making this year after a bankruptcy protection aren’t kets, the global financial grown more volatile. ContinuedfrompageC1 $10 billion, two-year buying to be relied on in China, system is heavily exposed to nese companies already have spree, in part because its many yield-seeking Western China via the banks. Bank Shanghai Composite index Chinese yuan vs. U.S. dollar committed to spending $96.7 chairman disappeared investors say they will buy lending into China grew five 6000 6.0 yuan per dollar billion this year on overseas briefly for questioning by when given the chance. times from 2010 to 2015 to acquisitions, just behind last Chinese authorities. His dis- There likely will be plenty $1 trillion, according to the 5000 6.1 year’s total of $106.9 billion. appearance knocked down more to buy: The Chinese IMF. 4000 6.2 For a while, the biggest deal the prices of Fosun’s bonds bond market has grown 22% With that much exposure, was an ill-fated attempt by a and stock, and Fosun termi- a year for the past five turmoil in the Chinese econ- 3000 6.3 Chinese provincial car in- nated two foreign deals years, according to the IMF. omy could cause big losses surer turned acquisition ma- soon after. The opening of the bond at the world’s banks. Big 2000 6.4 chine to buy Starwood Ho- market comes after China banks have a unique talent 6.5 tels & Resorts Worldwide has allowed foreigners to for spreading contagion. 1000 Scale inverted to The idea that China show weaker yuan Inc. buy its stocks and trade its Then there is the yuan. 0 6.6 There isn’t much risk to a is still an engine of currency, though always on When the Chinese currency 2014 ’15 ’16 2014 ’15 ’16 Chinese company buying a growth is dangerous Beijing’s terms. Both of was appreciating, investors hotel chain. But Anbang In- those markets were opened piled into yuan-denominated surance Group Co. has for investors. as part of China’s efforts to bonds and businesses in- Now China is opening its bond market as its debt has soared. snapped up insurers, which liberalize its capital mar- creasingly used the yuan for Overseas banks are already heavily exposed to Chinese companies. can cause more than a bad kets. China is opening its trade. That ended when the Size of Chinese bond markets Foreign bank lending into China night’s sleep if things go It isn’t hard to imagine bond market for a different yuan tumbled. Commercial bank Other wrong. investors losing confidence reason: to get foreigners to China knows it needs to Corporate Debt One stumbling block on in a financial firm whose ex- help deal with its huge debt keep its economy growing, Treasury Loans and deposits the Starwood deal was lack ecutives have disappeared load. but so far the only way that of transparency about An- into government custody. That is the problem with has worked is by borrowing $15 trillion $1.2 trillion Through June 30 bang’s finances, and rating For years, China’s domes- China getting more deeply more. That poses risks to firms have expressed the tic stock, bond and currency involved in the global finan- the bond market, to compa- 10 0.8 same concerns. markets have been largely cial system. In China, stabil- nies that have invested Anbang last week picked closed to foreign investors, ity and political goals have abroad and to banks that up a Korean insurer and in providing a global firewall long overshadowed financial have lent in China. 5 0.4 November agreed to buy Fi- that protected the rest of realities. China wants to One solution to boost delity & Guaranty Life, one the world from China’s ups spread the risk of its mar- growth would be to devalue 0 0 of the biggest sellers of fixed and downs. That, too, is kets to the world. But its the yuan. If Beijing decides 2010’11 ’12 ’13 ’14 ’15 2010’11 ’12 ’13 ’14 ’15 indexed annuities in the U.S., eroding. China is opening its markets aren’t truly markets another devaluation is for $1.57 billion. $6.7 trillion bond market, as we understand them— China’s best hope, expect a Sources: FactSet (index); Tullett Prebon (currency); Anbang replaced Fosun the world’s third-largest, as they are but another politi- rerun of last summer. International Monetary Fund (bond, lending) THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | C5 MARKETS DIGEST

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index Last Year ago Last Year ago Last Year ago 17908.28 s187.03, or 1.06% Trailing P/E ratio * 18.30 16.53 2082.42 s20.70, or 1.00% Trailing P/E ratio * 23.62 20.47 4947.42 s 75.33, or 1.55% Trailing P/E ratio *22.10 22.99 High, low, open and close for each P/E estimate * 16.70 16.28 High, low, open and close for each P/E estimate * 17.41 17.53 High, low, open and close for each P/E estimate * 18.46 19.15 trading day of the past three months. Dividend yield 2.54 2.24 trading day of the past three months. Dividend yield 2.20 1.99 trading day of the past three months. Dividend yield 1.26 1.21 All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15

Current divisor 0.14602128057775 18000 2100 4900 65-day moving average 65-day moving average 17500 2050 4780

17000 2000 4660

16500 1950 4540 Session high DOWN UP 65-day moving average

Session open tt Close 16000 1900 4420

Close Open 15500 1850 4300 Session low Bars measure the point change from session's open 15000 1800 4180 Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr. Jan. Feb. Mar. Apr. * P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes Late Trading Trading Diary Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 1,009,790,681 8,795,310 Industrial Average 17918.35 17741.66 17908.28 187.03 1.06 18312.39 15660.18 -1.1 2.8 6.4 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 766,808,531 5,022,936 Transportation Avg 7968.30 7784.70 7960.74 202.05 2.60 8904.68 6625.53 -8.5 6.0 9.0 Most-active issues in late trading Decl. volume* 230,605,786 3,511,641 Utility Average 663.98 654.94 658.22 -4.55 -0.69 671.04 541.97 11.8 13.9 7.9 Volume After Hours Issues traded 3,195 359 Company Symbol (000) Last Net chg % chg High Low Advances 2,414 199 Total Stock Market 21434.18 21229.10 21428.65 245.48 1.16 22287.78 18663.11 -3.0 1.6 9.0 Mkt Vectors Gold Miners GDX 13,533.9 22.29 0.04 0.18 22.88 21.55 Declines 712 141 Barron's 400 524.87 513.22 524.59 11.38 2.22 586.75 446.15 -10.3 1.6 8.6 SPDR S&P 500 SPY 6,474.9 208.05 0.05 0.02 208.09 203.43 Unchanged 69 19 Nasdaq Stock Market Prestige Brands Holdings PBH 4,738.0 56.45 0.01 0.02 56.68 50.95 New highs 109 22 Nasdaq Composite 4951.91 4903.60 4947.42 75.33 1.55 5218.86 4266.84 -1.3 -1.2 14.5 Pfizer PFE 3,811.2 32.54 … unch. 32.94 29.63 New lows 4… Closing tick 502 6 Nasdaq 100 4560.11 4524.26 4554.72 58.68 1.31 4719.05 3947.80 2.9 -0.8 16.8 Bank Of America BAC 3,190.0 13.75 -0.04 -0.29 14.95 11.87 Closing Arms† 1.06 1.13 Mkt Vectors Russia Tr SBI RSX 2,408.0 17.21 … unch. 17.35 16.48 Standard & Poor's Block trades* 6,921 91 iShares MSCI Emg Markets EEM 2,069.7 34.84 -0.10 -0.29 34.95 33.37 500 Index 2083.18 2065.92 2082.42 20.70 1.00 2130.82 1829.08 -1.1 1.9 9.4 Nasdaq NYSE Arca iShares China Large-Cap FXI 1,998.7 35.18 0.19 0.54 35.18 32.83 MidCap 400 1464.07 1439.75 1463.98 24.23 1.68 1549.44 1238.82 -4.8 4.7 8.4 Total volume* 1,921,960,886 368,610,515 SmallCap 600 692.90 680.29 692.90 14.96 2.21 742.13 588.26 -4.8 3.2 9.6 Percentage gainers… Adv. volume* 1,540,193,751 243,963,304 Decl. volume* 370,548,157 123,793,840 Pattern Energy Group PEGI 17.7 21.39 1.83 9.36 21.39 18.05 Other Indexes Issues traded 2,926 1,357 1129.93 2.19 -11.4 6.2 Emcore EMKR 23.7 6.44 0.36 5.92 6.45 5.02 Russell 2000 1129.93 1106.48 24.21 1295.80 953.72 -0.5 Advances 2,229 1,044 BioTime BTX 4.92 NYSE Composite 10362.13 10271.66 10359.51 120.82 1.18 11239.66 9029.88 -7.3 2.1 4.1 8.8 3.20 0.15 3.20 2.96 Declines 619 295 3.76 Value Line 459.13 450.77 459.11 8.34 1.85 522.42 383.82 -12.1 3.0 4.0 Cloud Peak Energy CLD 29.3 2.21 0.08 2.21 2.13 Unchanged 78 18 InvenSense INVN 3.28 NYSE Arca Biotech 3200.06 3126.17 3195.62 69.44 2.22 4431.87 2642.53 -22.1 -16.2 19.4 21.5 8.50 0.27 8.50 7.74 New highs 51 37 New lows 13 19 NYSE Arca Pharma 511.45 505.35 511.03 3.94 0.78 605.94 477.25 -12.8 -5.6 6.3 ...And losers Closing tick 228 131 KBW Bank 66.57 64.43 66.38 2.47 3.86 80.41 56.51 -9.8 -9.2 5.7 -19.17 Ctrip.com Intl ADR CTRP 26.1 39.37 -9.34 51.96 39.37 Closing Arms† 0.87 1.69 § 78.43 -1.86 9.2 -12.3 PHLX Gold/Silver 80.36 78.24 -1.48 79.91 38.84 73.1 Duff&PhelpsGblUtilIncFd DPG 30.0 13.34 -3.11 -18.91 13.34 13.34 Block trades* 8,523 1,919 § 163.79 1.25 -24.9 -13.1 -10.08 PHLX Oil Service 165.13 160.51 2.02 224.32 128.61 3.8 Vanguard FTSE Europe ETF VGK 15.8 44.21 -4.96 49.21 44.21 * Primary market NYSE, NYSE MKT NYSE Arca only. § PHLX Semiconductor 685.41 673.23 685.15 15.41 2.30 746.08 559.18 -3.4 3.3 16.5 BioCryst Pharm BCRX 15.0 2.65 -0.24 -8.30 2.90 2.65 †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An CBOE Volatility 14.53 13.60 13.84 -1.01 -6.80 40.74 11.95 7.8 -24.0 4.7 LPG -6.41 Dorian LPG 5.8 9.05 -0.62 9.67 8.98 Arms of less than 1 indicates buying demand; above 1
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers Latest YTD Latest Session 52-Week Latest Session 52-Week Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg

World The Global Dow 2357.38 40.95 1.77 0.9 Voyager Therapeutics VYGR 13.49 2.51 22.86 30.54 8.12 ... Adesto Technologies IOTS 4.80 -0.67 -12.25 8.50 4.51 ... The Global Dow Euro 1967.21 49.80 2.60 –2.9 Resonant Inc. RESN 3.46 0.58 20.28 5.75 1.69 -11.9 Direxion China Bear 3X YANG 21.51 -2.83 -11.63 44.91 12.20 58.7 DJ Global Index 310.70 4.21 1.37 0.9 Emcore EMKR 6.08 1.00 19.69 8.52 4.95 6.9 ProSharesUltVIXST UVXY 18.06 -2.02 -10.06 91.25 17.97 -67.3 19.23 82.4 -9.95 ... World DJ Global ex U.S. 210.31 3.41 1.65 0.1 Companhia Siderurgica ADR SID 3.72 0.60 3.75 0.73 Hailiang Educ Group ADR HLG 8.15 -0.90 12.50 7.34 GoPro Inc. GPRO 13.90 2.22 19.01 65.49 9.01 -69.6 EnviroStar EVI 3.69 -0.37 -9.11 5.65 3.00 17.1 Americas DJ Americas 500.50 5.53 1.12 2.7 Lattice Semiconductor LSCC 6.36 0.99 18.44 7.07 3.25 -1.7 Ocean Power Techs OPTT 2.10 -0.21 -9.10 8.50 0.95 -62.5 Brazil Sao Paulo Bovespa 53149.84 1147.98 2.21 22.6 CyberOptics CYBE 11.19 1.69 17.79 12.07 4.80 2.3 Emerge Energy Services EMES 5.25 -0.52 -9.01 52.20 1.97 -89.7 Canada S&P/TSX Comp 13671.35 89.93 0.66 5.1 Xerium Technologies XRM 5.36 0.78 17.03 18.93 4.15 -70.4 Corbus Pharmaceuticals CRBP 2.36 -0.23 -8.88 4.31 1.01 -30.6 Mexico IPC All-Share 45411.30 320.63 0.71 5.7 Conn's CONN 13.00 1.86 16.70 43.95 10.25 -60.1 EV Energy Partners EVEP 2.20 -0.21 -8.71 18.14 1.60 -86.6 Chile Santiago IPSA 3143.35 2.82 0.09 6.8 Argos Therapeutics ARGS 9.52 1.36 16.61 9.58 1.61 8.0 VS 2x VIX Short Term TVIX 4.16 -0.39 -8.57 19.90 4.11 -66.7 Europe Stoxx Europe 600 343.06 8.42 2.52 –6.2 Joy Global JOY 18.40 2.62 16.60 44.75 8.35 -54.1 Lucas Energy LEI 5.12 -0.48 -8.57 10.65 1.23 -11.4 Euro zone Euro Stoxx 324.85 8.88 2.81 –5.9 Dimension Therapeutics DMTX 7.94 1.04 15.07 15.55 5.87 ... Gaming Partners Intl GPIC 8.85 -0.82 -8.48 13.40 8.08 -24.7 Belgium Bel-20 3437.85 67.16 1.99 –7.1 Performance Sports Group PSG 3.85 0.50 14.93 21.72 2.80 -80.4 DXN DLY GLDMNR 3x BL NUGT 79.05 -7.10 -8.24 141.90 17.40 -34.7 France CAC 40 4490.31 3.32 –3.2 144.40 CryoPort CYRX 2.52 0.32 14.41 8.74 1.03 -70.5 Parnell Pharmaceuticals PARN 2.57 -0.23 -8.21 5.98 1.34 -48.4 Germany DAX 10026.10 2.71 264.63 –6.7 Ameresco AMRC 4.61 0.55 13.55 7.98 4.00 -39.1 EP Energy Cl A EPE 4.46 -0.39 -8.04 15.80 1.60 -68.9 Israel Tel Aviv 1467.11 18.81 1.30 –4.0 Italy FTSE MIB 18165.59 720.79 4.13 –15.2 Netherlands AEX 450.09 10.59 2.41 1.9 Most Active Stocks Volume Movers Ranked by change from 65-day average* Spain IBEX 35 8820.70 274.40 3.21 –7.6 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low Sweden SX All Share 490.12 7.20 1.49 –3.0 BAC 135,235 3.92 2764 -12.25 Switzerland Swiss Market 7934.46 145.68 1.87 –10.0 Bank Of America -0.9 13.79 18.48 10.99 Adesto Technologies IOTS 691 4.80 8.50 4.51 Chesapeake Energy CHK 103,278 138.1 6.06 0.17 16.98 1.50 Nuveen Enh AMT-Fr Muni NVG 1,594 2478 15.25 -0.13 15.38 13.50 U.K. FTSE 100 6362.89 120.50 1.93 1.9 iShares MSCI Emg Markets EEM 93,306 33.8 34.94 1.78 44.19 27.61 PowerShares Europe Curr FXEU 1,228 2396 24.70 1.69 27.57 21.82 1371.36 1.67 Asia-Pacific DJ Asia-Pacific TSM 22.48 –1.3 SPDR S&P 500 SPY 89,584 -35.6 208.00 1.01 213.78 181.02 Sportsman's Warehouse SPWH 5,629 1920 11.30 -3.17 14.91 9.04 5054.70 1.59 Australia S&P/ASX 200 79.10 –4.6 Facebook Cl A FB 87,661 146.7 110.51 -0.09 117.59 72.00 iPath Bloom Nickel Sub TR JJN 90 1589 10.86 0.54 19.04 8.94 China Shanghai Composite 3066.64 42.99 1.42 –13.4 DXN DLY GLDMNR 3x BR DUST 74,270 78.6 2.22 7.77 40.00 2.01 FT Gl Tactical Commodity FTGC 2,537 1370 20.31 0.35 25.96 18.85 Hong Kong Hang Seng 21158.71 654.27 3.19 –3.4 Mkt Vectors Gold Miners GDX 63,490 -24.1 22.25 -2.75 23.06 12.40 Van Eck Merk Gold Trust OUNZ 709 1231 12.34 -1.12 12.71 10.43 India S&P BSE Sensex 25626.75 481.16 1.91 –1.9 Sirius XM Holdings SIRI 58,279 54.2 3.92 1.55 4.20 3.29 CyberOptics CYBE 216 1204 11.19 17.79 12.07 4.80 Japan Nikkei Stock Avg 16381.22 452.43 2.84 –13.9 iPath SP 500 VIX Sht Tm VXX 56,867 -29.3 17.21 -5.02 31.48 15.48 iSh JPX-Nikkei 400 JPXN 271 969 51.48 2.90 59.04 40.60 Singapore Straits Times 2890.41 2.69 0.3 75.76 Finl Select Sector SPDR XLF 55,367 -12.4 22.93 2.27 25.62 18.52 First Tr RBA Quality Incm QINC 55 920 21.81 1.58 22.15 18.26 South Korea Kospi 1981.32 Closed 1.0 … * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 1.42 * Volumes of 100,000 shares or more are rounded to the nearest thousand Taiwan Weighted 8652.08 120.90 3.8 5,000 shares =Has traded fewer than 65 days Sources: SIX Financial Information; WSJ Market Data Group

Consumer Rates and Returns to Investor TreasuryBenchmark yield Yields curve Forex Race Currencies Yen, euro vs. dollar; dollar vs. andYield to Rates maturity of current bills, U.S.-dollar foreign-exchange rates in late New York trading U.S. consumer rates Selected rates notes and bonds major U.S. trading partners 5-year CDs US$ vs, US$ vs, A consumer rate against its 10% YTD chg YTD chg

s s Wed Wed benchmark over the past year 5.00% Euro Yen Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) Bankrate.com avg†: 1.27% 8 –2.7 4.00 6 Americas Thailand baht .02852 35.060 Barclays 2.05% 0.7 4 11.2 Vietnam dong .00004485 22297

1.50% Wilmington, DE 888-720-8756 Argentina peso .0695 14.3900 t 3.00 2 Brazil real .2859 3.4976 –11.7 Europe 2.05% Five-year CD yields Nationwide Bank 0 Canada dollar .7801 1.2819 –7.4 Czech Rep. koruna .04171 23.974 –3.7 1.00 2.00 Columbus, OH 855-255-1176 –2 Chile peso .001492 670.10 –5.4 Denmark krone .1515 6.6017 –3.9

One year ago t t s Colombia –5.3 Euro area –3.7 Federal-funds 0.50 First Internet Bank of Indiana 2.07% 1.00 –4 peso .0003327 3005.81 euro 1.1274 .8870 WSJ Dollar index Ecuador US dollar 11unch Hungary forint .003626 275.76 –5.1 target rate Indianapolis, IN 888-873-3424 Wednesday –6 t Mexico peso .0574 17.4277 1.3 Iceland krona .008051 124.21 –4.6 0.00 0.00 –8 Sallie Mae 2.10% Peru new sol .3060 3.268 –4.3 Norway krone .1214 8.2345 –6.9 1 3 6 1 2 3 5 710 30 Murray, UT 877-346-2756 2015 2016 Uruguay peso .03220 31.0600 3.8 Poland zloty .2630 3.8026 –3.1 –0.50 month(s) years 58.4 –7.9 Colorado Federal Savings Bank 2.15% Venezuela b. fuerte .100137 9.9864 Russia ruble .01510 66.234 M J J A S O N D J F M A maturity Sweden krona .1228 8.1408 –3.6 Greenwood Village, CO Asia-Pacific 2015 2016 877-484-2372 Switzerland franc 1.0343 .9668 –3.5 Australian dollar .7653 1.3067 –4.8 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Turkey lira .3513 2.8467 –2.4 China yuan .1544 6.4749 –0.3 Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0392 25.5085 6.3 l Hong Kong dollar .1289 7.7562 0.1 Interest rate Last ( )Week ago Low 0 2 4 6 8 High (pct pts) UK pound 1.4204 .7040 3.7 India rupee .01504 66.496 0.4 Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000758 13184 –4.7 Middle East/Africa Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .009147 109.32 –9.1 Bahrain dinar 2.6539 .3768 –0.1 Bond total return index Close Last Week ago High Low 52-wk 3-yr –0.7 13.4 Libor, 3-month 0.63 0.63 0.27 l 0.64 0.35 Kazakhstan tenge .002973 336.38 Egypt pound .1126 8.8771 Macau pataca .1252 7.9862 –0.2 Israel shekel .2651 3.7718 –3.1 Money market, annual yield 0.26 0.26 0.22 l 0.39 -0.21 Treasury, Ryan ALM 1467.997 1.453 1.441 1.957 1.351 2.498 2.510 Malaysia ringgit .2589 3.8625 –10.2 Kuwait dinar 3.3109 .3020 –0.5 1.27 l 0.03 1.760 –2.091 Five-year CD, annual yield 1.28 1.27 1.53 10-yr Treasury, Ryan ALM 1774.855 1.753 2.480 1.642 2.613 New Zealand dollar .6920 1.4451 –1.3 Oman sul rial 2.5961 .3852 0.1 30-year mortgage, fixed† 3.56 3.57 3.56 l 4.22 -0.19 DJ Corporate n.a. n.a. 2.856 3.462 2.648 n.a. n.a. Pakistan rupee .00955 104.700 –0.2 Qatar rial .2746 3.641 unch 2.81 l -0.18 Philippines –1.7 Saudi Arabia –0.1 15-year mortgage, fixed† 2.81 2.80 3.42 Aggregate, Barclays Capital 1889.800 2.150 2.160 2.630 2.000 2.122 2.345 peso .0217 46.068 riyal .2667 3.7497 l Singapore dollar .7404 1.3507 –4.8 South Africa rand .0688 14.5329 –6.1 Jumbo mortgages, $417,000-plus† 4.19 4.17 4.00 4.97 0.13 6.466 –4.770 High Yield 100, Merrill Lynch 2461.143 6.835 8.696 5.207 1.490 South Korea won .0008723 1146.36 –2.5 Five-year adj mortgage (ARM)† 3.25 3.23 3.05 l 3.86 0.38 Fixed-Rate MBS, Barclays 1948.790 2.330 2.360 2.900 2.260 2.404 2.637 Sri Lanka rupee .0068781 145.39 0.8 Close Net Chg % Chg YTD % Chg l 0.48 New-car loan, 48-month 3.18 3.18 2.71 3.38 –1.7 –4.21 Muni Master, Merrill 509.609 1.518 1.539 2.099 1.440 4.087 3.141 Taiwan dollar .03090 32.366 WSJ Dollar Index 86.38 0.57 0.66 HELOC, $30,000 4.68 4.56 4.24 l 5.01 -0.54 5.991 3.394 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 713.895 6.143 7.128 5.679 1.915 Sources: Tullett Prebon, WSJ Market Data Group banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Commodities Wednesday 52-Week YTD Pricing trends on someClose raw materials, Net chg % Chg or commodities High Low % Chg % chg DJ Commodity 494.24 3.75 0.76 584.70 420.23 -11.79 8.91 ONLINE Reuters-Jefferies CRB 175.65 0.17 0.09 231.77 155.01 -21.44 -0.35 41.76 -0.97 -25.94 WSJ Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and Crude oil, $ per barrel -0.41 61.43 26.21 12.74 2.036 1.60 -21.99 .COM ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at Natural gas, $/MMBtu 0.032 3.02 1.64 -12.88 1246.80 -1.00 3.77 WSJMarkets.com Gold, $ per troy oz. -12.60 1272.00 1050.80 17.59 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C8 | Thursday, April 14, 2016 THE WALL STREET JOURNAL. HEARD ON THE STREET

Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard China Offers What Citi’s Win Means for Banks OVERHEARD

Brief Relief Citigroup earned brag- shouldn’t forget that it is, in The relationship between ging rights on Wall Street Shrink to Fit fact, an option. bonds and stocks in a world From Jitters this week by being the only Citigroup total assets More immediately, the distorted by central-bank pol- big U.S. bank whose so- 11% resolution process is viewed icy is complicated. Neverthe- At least for now, China is called living will wasn’t $2.0 trillion from 1Q ’11 by regulators as a tool to re- less, the performance of the safely sliding down the list of found to be not credible by quire changes in real time to two asset classes this year the world’s most urgent eco- either the Federal Reserve or the basic structures and op- raises questions. nomic worries. the Federal Deposit Insur- 1.5 erations of the biggest For the first six weeks of The Chinese economy re- ance Corp. banks. Which means it is the year, stocks fell and mains brittle, but signs of late The fact that Citi suc- 1.0 likely a mistake to think bonds rallied as risk aversion show a less dire picture. Offi- ceeded where its rivals, in- banks that failed this time mounted, fears over the cial trade data Wednesday cluding J.P. Morgan Chase, just need to spend more global economy built and in- showed exports rose in value stumbled will no doubt be a 0.5 money putting together vestors were likely wrongly terms in March from a year cause for mirth on Wall more persuasive or compre- positioned. By Feb. 11, the earlier for the first time in Street. After all, just two hensive plans. S&P 500 was down 10.5%, nine months. Imports continue years ago, Citi’s “stress test” 0 Keep in mind that even while U.S. Treasurys were up to shrink on a value basis be- submissions were found 2011 ’12 ’13 ’14 ’15 Citi didn’t exactly pass with 3.7%; long-dated U.S. bonds cause of weaker commodity wanting by the Fed. Source: FactSet flying colors. Regulators maturing in 25 years or more

prices. On a volume basis, Ironically, in the eyes of THE WALL STREET JOURNAL. TIMOTHY A. CLARY/AGENCE FRANCE-PRESSE/GETTY IMAGES cited shortcomings in gover- were up a whopping 10.75%, however, imports such as iron many on Wall Street, if regu- nance, assumptions about according to Barclays indexes. ore, copper and oil grew lators wanted to make an ex- plans were deemed “not rently structured, they can’t the bank’s ability to hedge But that marked the low sharply in the first quarter. ample of one bank, Citi was credible” by both the Fed be resolved through bank- portfolio risk and estimating for stocks. The S&P 500 has That should provide further the most likely candidate— and the FDIC. It suggests ruptcy. Regulators aren’t just liquidity needs during reso- gained nearly 14% since then, support for the recent com- just not in a positive way. there is a path forward for asking for better plans. They lution. They officially put and is back in positive terri- modity price rally. Instead, Citi stands tall. them. The crucial point for are demanding better—more Citi on notice that failure to tory for the year. Yet bonds But the export figures, up By accepting Citi’s plan, the investors: Regulators aren’t resolvable—banks. address these shortcomings still are close to their highs: 11% in dollar terms in March, Fed and the FDIC have rejecting banks simply be- That is a big difference. could land them in the pen- Treasurys as a whole are up deserve caution. The compara- shown that it is possible for cause of their size. And it is an especially im- alty box next time around. 3.3% while long-dated bonds tive month a year earlier was a bank often considered too The snag is that might be portant one given that the In other words, regulators still are up 9.1%. Ten-year unusually weak, possibly hav- big to fail to earn a passing tougher than investors antic- living-will process gives reg- intend to tighten the screws Treasury yields are 0.5 per- ing to do with seasonal and grade. Which is to say, Citi ipate. While regulators re- ulators extraordinary powers over time—just as they have centage point lower than at accounting effects. And for the has convinced regulators jected the resolution plans of that range from requiring a with the stress tests. Each the start of the year. The dis- first quarter as a whole, ex- that it could credibly be re- the banks, it is clear that the firm to hold more capital to year, getting regulatory ap- connect is clear. True, there ports were down 10%. solved in an orderly manner objections go beyond just the ability to effectively proval will likely become in- has been a further wave of Other figures lately show through bankruptcy rather paperwork. forceabreakup. crementally more difficult. central-bank action, most no- Chinese consumer activity than bailout. The plans of at least some Regulators won’t be rash Passing now isn’t a guar- tably from the European Cen- holding up. Railroad passenger This is good news for the of the banks that failed lack to embrace the nuclear op- antee of passing forever. tral Bank, which cut rates, travel was strong. Car sales in five banks whose resolution credibility because, as cur- tion. But banks and investors —John Carney launched a further round of March were up nearly 10%, bank loans and expanded its with sport-utility vehicle sales bond purchases. Eurozone rising close to 50%. It is yet to bond yields are close to their be seen how much of that is lows, potentially acting as an final demand versus inventory Valeant’s Latest Default Notice Isn’t So Scary anchor for U.S. yields. And buildup, but the rebound can’t It is unusual when a no- eant bonds due 2023. which didn’t include holders by April 29. If that were to the Federal Reserve appears be dismissed out of hand. And tice of default from bond- But the real surprise of unsecured debt, the se- happen, unsecured lenders in no hurry to raise rates. Beijing finally has gotten a holders doesn’t meaningfully wouldhavebeenifValeant cured lenders received a probably wouldn’t get any The balance between handle on the yuan, seemingly change a company’s pros- didn’t get such a notice. cash fee and a bump up in compensation. And while it stocks and bonds is discon- going back to its old playbook pects as an investment. But This notice came after the interest paid on their is quite possible that Center- certing—although it is hard to of pegging it to the dollar. nothing is ever normal when Valeant reached a deal with debt. So it is only natural bridge will seek new conces- tell who is right and who is So is China out of the it comes to Valeant Pharma- its secured lenders last week that unsecured lenders sions from Valeant to cure wrong. Bond yields look re- woods? Probably not. China’s ceuticals International. to push back its deadline for would now want to try for the notice of default, the no- markably low, but betting broader slowdown in the past Valeant announced Tues- filing its annual results with similar largess. If they did- tice doesn’t accelerate any against them staying low has half-decade has been a series day afternoon that it had re- the Securities and Exchange n’t, they could be leaving future debt payments that burned investors several of minirecoveries like this, fol- ceived a notice of default Commission. The Wall Street money on the table. Valeant owes unless the times now. On the other lowed by deeper and discon- from unsecured bondholders Journal reported that due to After initially trading company fails to file its hand, inflation isn’t quite as certing slumps as the econ- over the beleaguered drug- the new notice of default, lower Wednesday, Valeant statements by May 27. quiescent as investors might omy, stuffed with debt, fails to maker’s failure to file its au- Valeant now has until May shares closed up on the day. All of which means the be hoping, a particular con- stabilize. dited financial statements in 27 to file its so-called 10-K. Besides the fact that the no- strangest story on Wall cern for long-dated bonds. Investors can breathe for a timely manner. Center- Last week’s deal with bank tice should have been ex- Street these days shouldn’t Markets sometimes make now, but it seems likely China bridge Partners LP sent the lenders had pushed the pected, it probably also is be reaching its epilogue any- everyone happy. But it usually will be gasping for air again notice after it bought $250 deadline to May 31. because Valeant continues to time soon. doesn’t last. before long. —Alex Frangos million in face value of Val- As part of that deal, say it intends to file its 10-K —Charley Grant

WSJ.com/fundresearch Net YTD Net YTD Net YTD Net YTD Net YTD Net YTD Mutual Funds | Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret Data provided by Net YTD Oppenheimer Y InstlCapG 27.46 +0.39 -4.9 STBondAdml 10.56 ... 1.6 PrmcpCor 21.08 +0.31 1.2 DevMktsIndInst 11.75 +0.17 -0.2 Explanatory Notes Fund NAV Chg % Ret DevMktY 31.37 +0.57 4.6 Intl G&I 13.10 +0.19 0.2 V STIGradeAdml 10.70 ... 1.9 SelValu r 26.65 +0.39 3.1 ExtndInst 63.78 +1.19 0.7 Top 250 mutual-funds listings for Nasdaq-published share classes with LgCap 19.48 +0.23 4.7 net assets of at least $500 million each. NAV is net asset value. IntGrowY 36.35 +0.34 1.3 IntlStk 15.52 +0.25 1.6 VANGUARD ADMIRAL TotBdAdml 10.93 +0.01 3.5 STAR 23.74 +0.25 1.9 GrwthInst 55.48 +0.54 1.6 FPA Funds Percentage performance figures are total returns, assuming reinvestment MCapGro 73.72 +1.10 0.5 500Adml 192.23 +1.94 2.5 TotIntBdIdxAdm 21.80 +0.03 3.6 STIGrade 10.70 ... 1.9 InPrSeIn 10.69 ... 4.1 FPACres 31.34 +0.41 0.9 of all distributions and after subtracting annual expenses. Figures don’t P BalAdml 29.90 +0.22 2.8 TotIntlAdmIdx r 24.56 +0.35 1.6 TgtRe2015 14.62 +0.09 2.7 InstIdx 190.34 +1.92 2.5 reflect sales charges (“loads”) or redemption fees. NET CHG is change in FrankTemp/Franklin A MCapVal 27.05 +0.30 8.5 YTD%RET 3-YR Parnassus Fds CAITAdml 12.02 ... 2.2 TotStAdml 51.67 +0.60 2.2 TgtRe2020 27.90 +0.22 2.8 InstPlus 190.35 +1.92 2.5 NAV from previous trading day. is year-to-date return. CA TF A p 7.62 ... 2.6 N Horiz 41.27 +0.73 -2.8 %RET is trailing three-year return annualized. ParnEqFd 37.82 +0.38 2.6 CapOpAdml r 117.05 +2.05 -1.3 TxMIn r 11.73 +0.17 -0.3 TgtRe2025 16.04 +0.15 2.7 InstTStPlus 46.74 +0.54 2.2 Fed TF A p 12.46 ... 1.9 N Inc 9.57 +0.01 3.0 e f g PIMCO Fds Instl EMAdmr 29.38 +0.53 7.7 ValAdml 32.51 +0.36 2.8 TgtRe2030 28.41 +0.27 2.5 MidCpInst 33.41 +0.45 1.9 -Ex-distribution. -Previous day’s quotation. -Footnotes x and s apply. Growth A p 74.64 +0.95 1.7 OverS SF r 9.03 +0.15 0.4 j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. AllAsset NA ... NA EqIncAdml 64.52 +0.49 4.9 WdsrllAdml 60.89 +0.86 2.4 TgtRe2035 17.23 +0.18 2.3 MidCpIstPl 164.77 +2.19 1.9 IncomeA p 2.14 +0.02 3.9 R2015 14.08 +0.10 2.9 p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock ShortT NA ... NA ExtndAdml 63.78 +1.18 0.7 WellsIAdml 61.71 +0.20 4.6 TgtRe2040 29.08 +0.33 2.2 SmCapInst 54.15 +1.00 2.4 split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. RisDv A p 50.33 +0.41 5.8 R2020 20.20 +0.18 2.6 TotRt 10.20 +0.01 2.1 GNMAAdml 10.79 ... 2.0 WelltnAdml 65.23 +0.55 3.3 TgtRe2045 18.17 +0.21 2.2 STIGradeInst 10.70 ... 1.9 x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to FrankTemp/Franklin C R2025 15.30 +0.15 2.3 TgtRe2050 29.11 +0.34 2.2 NE PIMCO Funds A GrwthAdml 55.48 +0.54 1.6 WndsrAdml 64.47 +1.07 -0.2 TotBdInst 10.93 +0.01 3.5 incomplete price, performance or cost data. -Not released by Lipper; data Income C t 2.17 +0.02 4.2 R2030 22.26 +0.24 2.1 TgtRetInc 12.77 +0.05 2.9 under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. TotRetA 10.20 +0.01 2.0 HlthCareAdml r 85.05 +0.89 -6.2 VANGUARD FDS TotBdInst2 10.89 +0.01 3.5 FrankTemp/Temp A R2035 16.07 +0.19 1.8 TotIntBdIxInv 10.90 +0.01 3.6 Wednesday, April 13, 2016 PIMCO Funds D HYCorAdml r 5.64 +0.02 3.4 DivdGro 23.20 +0.20 3.8 TotBdInstPl 10.93 +0.01 3.5 GlBond A p 11.52 +0.11 0.3 R2040 22.92 +0.29 1.5 WellsI 25.47 +0.08 4.5 IncomeFd NA ... NA InfProAd 26.25 +0.02 4.1 GNMA 10.79 ... 2.0 TotIntBdIdxInst 32.72 +0.05 3.6 Net YTD Net YTD Growth A p 22.01 +0.41 0.5 Welltn 37.77 +0.32 3.3 Fund NAV Chg % Ret Fund NAV Chg % Ret PIMCO Funds Instl SmCapStk 39.01 +0.80 1.0 IntlGrAdml 67.27 +1.25 0.3 TotIntlInstIdx r 98.24 +1.43 1.7 FrankTemp/Temp Adv HlthCare r 201.61 +2.10 -6.2 WndsrII 34.31 +0.49 2.4 USLgVa 31.12 +0.47 1.6 IncomeFd NA ... NA Value 31.75 +0.38 1.6 ITBondAdml 11.67 +0.01 4.4 IntlVal 31.67 +0.54 1.9 TotItlInstPlId r 98.25 +1.42 1.7 A GlBondAdv p 11.48 +0.11 0.4 PIMCO Funds P ITIGradeAdml 9.93 +0.01 3.9 VANGUARD INDEX FDS Dodge & Cox INSTTRF2020 19.73 +0.16 2.8 500 192.22 +1.93 2.5 TotStInst 51.67 +0.59 2.2 American Century Inv Balanced 94.01 +1.23 1.6 IncomeP NA ... NA S LTGradeAdml 10.53 +0.04 8.0 INSTTRF2025 19.59 +0.18 2.7 VirtusFunds Cl I H Price Funds MidCpAdml 151.24 +2.01 1.9 ExtndIstPl 157.39 +2.92 0.7 Ultra 35.17 +0.49 0.4 Income 13.53 +0.03 2.8 Schwab Funds INSTTRF2030 19.43 +0.19 2.6 EmMktI 9.26 +0.10 3.3 Harbor Funds BlChip 69.40 +0.95 -4.1 MuHYAdml 11.49 ... 2.6 TotBd2 10.89 +0.01 3.4 American Funds Cl A Intl Stk 36.26 +1.05 -0.6 S&P Sel 32.35 +0.33 2.5 LifeCon 18.32 +0.11 3.1 CapApInst 58.35 +0.78 -4.0 CapApp 25.82 +0.19 3.1 MuIntAdml 14.45 ... 2.1 TotIntl 14.69 +0.22 1.7 AmcpA p 26.64 +0.34 2.7 Stock 159.70 +2.84 0.6 LifeGro 27.92 +0.30 2.4 W IntlInst r 60.94 +1.05 2.5 EmMktS 30.76 +0.58 7.9 MuLTAdml 11.95 +0.01 2.7 TotSt 51.65 +0.60 2.2 AMutlA p 35.31 +0.22 4.9 DoubleLine Funds LifeMod 23.69 +0.19 2.7 Western Asset EqInc 29.61 +0.39 4.4 T MuLtdAdml 11.07 ... 0.9 VANGUARD INSTL FDS BalA p 24.42 +0.14 2.9 TotRetBdI NA ... NA Primcp r 99.40 +1.40 -0.3 EqIndex 56.07 +0.57 2.5 TIAA/CREF Funds MuShtAdml 15.83 ... 0.4 BalInst 29.91 +0.22 2.9 CorePlusBdI NA ... NA BondA p 12.91 +0.01 3.1 TotRetBdN NA ... NA I Growth 51.40 +0.68 -4.2 EqIdxInst 15.41 +0.18 2.3 PrmcpAdml r 102.98 +1.45 -0.3 CapIBA p 57.96 +0.13 4.7 Invesco Funds A HelSci 61.83 +0.66-10.2 Tweedy Browne Fds REITAdml r 117.95 -0.49 5.6 CapWGrA 43.98 +0.46 1.9 EqIncA 9.63 +0.13 0.5 F HiYield 6.32 +0.03 4.1 GblValue 24.29 +0.36 -0.7 SmCapAdml 54.15 +1.00 2.4 EupacA p 45.18 +0.67 -0.4 Fidelity Advisor A Cash Prices|WSJ.com/commodities Wednesday, April 13, 2016 FdInvA p 51.71 +0.54 2.3 NwInsghtA p 26.06 +0.31 0.7 J GwthA p 41.11 +0.50 -0.4 Fidelity Advisor I John Hancock Class 1 These prices reflect buying and selling of a variety of actual or “physical” Exchange-Traded Portfolios | WSJ.com/ETFresearch HI TrA p 9.60 +0.06 4.5 NwInsghtI 26.57 +0.31 0.8 LSBalncd 14.40 +0.12 1.5 commodities in the marketplace—separate from the futures price on an ICAA p 34.94 +0.27 5.1 Fidelity Freedom LSGwth 14.94 +0.16 0.7 Largest 100 exchange-traded funds, latest session Closing Chg YTD exchange, which reflects what the commodity might be worth in future IncoA p 20.84 +0.09 3.8 FF2020 14.80 +0.14 1.9 John Hancock Instl ETF Symbol Price (%) (%) N PerA p 35.83 +0.46 -0.5 FF2025 12.64 +0.12 1.6 DispValMCI 19.36 +0.26 1.1 Wednesday, April 13, 2016 months. iShRussell2000Gwth IWO 135.19 2.42 –2.9 NEcoA p 35.58 +0.59 -1.1 FF2030 15.41 +0.18 1.3 JPMorgan Inst Class Closing Chg YTD iShRussell2000ETF IWM112.31 2.16 –0.3 Wednesday Wednesday FreedomK2020 13.77 +0.12 1.8 MdCpVal 35.44 +0.38 4.3 ETF Symbol Price (%) (%) NwWrldA 51.19 +0.76 2.4 iShRussell2000Val IWN 94.20 1.83 2.5 Hides,hvy native steers piece fob-u 73.000 AlerianMLPETF AMLP 11.29 –0.09 –6.3 SmCpA p 43.34 +0.60 -0.7 FreedomK2025 14.34 +0.14 1.7 JPMorgan R Class iShRussell3000ETF IWV 122.37 1.17 1.7 Energy Wool,64s,staple,Terr del-u,w 3.89 XLY 79.27 1.41 1.4 TxExA p 13.25 +0.01 2.1 FreedomK2030 14.52 +0.16 1.3 CoreBond 11.84 +0.01 3.1 CnsmrDiscSelSector iShRussellMid-Cap IWR 164.48 1.32 2.7 Propane,tet,Mont Belvieu-g 0.4554 XLP 52.95 –0.77 4.9 WshA p 39.39 +0.33 3.0 FreedomK2035 14.92 +0.19 1.1 JPMorgan Select Cls CnsStapleSelSector iShRussellMCValue IWS 71.72 1.07 4.5 Butane,normal,Mont Belvieu-g 0.5669 Grains and Feeds DGP 25.18 –0.87 38.8 AMG Managers Funds FreedomK2040 14.95 +0.18 1.1 CoreBond 11.83 +0.01 3.1 DBGoldDoubleLgETN iShS&P500Growth IVW 117.17 0.87 1.2 NaturalGas,HenryHub-i 1.980 Barley,top-quality Mnpls-u n.a. DZZ 6.16 2.50–30.6 YacktmanFd 22.00 +0.15 5.4 Fidelity Invest ShtDurBnd 10.88 ... 0.8 DBGoldDoubleShrt iShS&P500ValueETF IVE 91.08 1.19 2.9 NaturalGas,TranscoZone3-i 1.880 Bran,wheat middlings, KC-u 63 DBEF 26.02 2.40 –4.2 AQR Funds AMgr50% 16.29 +0.12 1.9 USLgCpCorPls 26.72 +0.45 -0.3 DeutscheXMSCIEAFE iSharesUSPreferred PFF 38.71 0.21 –0.4 NaturalGas,TranscoZone6NY-i 1.650 Corn,No. 2 yellow,Cent IL-bp,u 3.6400 XLE 64.26 0.47 6.5 Balanc 21.35 +0.18 1.0 EnSelectSectorSPDR SLV 15.44 0.19 17.1 NaturalGas,PanhandleEast-i 1.720 73.1 MgdFutStrI NA ... NA 22.93 2.27 –3.8 iShrSilverTr Corn gluten feed,Midwest-u,w BalancedK 21.35 +0.18 1.0 FinSelSectorSPDR XLF SHY 84.97 –0.05 0.7 NaturalGas,Opal-i 1.740 440.9 Artisan Funds L 79.37 1.26 3.6 iSh1-3YTreasuryBd Corn gluten meal,Midwest-u,w BluCh 66.95 +0.87 -2.9 GuggenheimSP500EqW RSP IEF 110.49 0.07 4.6 NaturalGas,MarcellusNE PA-i 1.410 205 Intl Inv 27.95 +0.37 -2.5 Lazard Instl 70.03 0.94 –2.8 iSh7-10YTreasuryBd Cottonseed meal-u,w Contra 97.94 +1.15 -0.3 HealthCareSelSect XLV iSh20+YTreasuryBd TLT 131.39 0.35 9.0 NaturalGas,HaynesvilleN.LA-i 1.870 Hominy feed,Cent IL-u,w 80 EmgMktEq 15.01 +0.24 11.7 IndSelSectorSPDR XLI 55.87 1.49 5.4 ContraK 97.89 +1.15 -0.2 iShRussellMCGrowth IWP 92.77 1.58 0.9 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.300 Meat-bonemeal,50% pro Mnpls-u,w 325 B Loomis Sayles Fds iShIntermCredBd CIU 109.69 0.04 2.2 CpInc r 9.18 +0.07 1.5 MktVectorsBiotech BBH 110.81 1.69–12.7 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 9.350 Oats,No.2 milling,Mnpls-u 2.4700 Baird Funds LSBondI 13.32 +0.04 3.8 CSJ 105.44 –0.03 0.8 iSh1-3YCreditBond MktVectorsGoldMin GDX 22.25 –2.75 62.2 Rice, 5% Broken White, Thailand-l,w 369.00 DivIntl 34.43 +0.41 -1.8 Lord Abbett A 114.19 0.09 4.1 CorBdInst 11.16 +0.02 3.5 iSharesTIPSBondETF TIP MktVectorsOilSvcs OIH 27.59 1.51 4.3 Metals 22.13 DivIntlK r 34.37 +0.41 -1.8 125.86 –0.05 2.7 Rice, Long Grain Milled, No. 2 AR-u,w BlackRock Funds A ShtDurIncmA p 4.33 +0.01 1.6 iSh3-7YTreasuryBd IEI MktVectorsPharm PPH 59.09 0.99 –2.4 7.5188 GroCo 131.33 +1.96 -3.8 54.10 1.52 –0.5 Gold, per troy oz Sorghum,(Milo) No.2 Gulf-u GlblAlloc p 17.93 +0.13 0.5 Lord Abbett F iShCoreMSCIEAFEETF IEFA MktVectorsRetail RTH 76.95 1.05 –1.0 1249.77 299.20 GrowCoK 131.21 +1.95 -3.8 42.52 1.65 7.9 Engelhard industrial SoybeanMeal,Cent IL,rail,ton48%-u BlackRock Funds C ShtDurIncm 4.32 ... 1.4 iShCoreMSCIEmgMk IEMG MktVectorsSemi SMH 55.62 2.04 4.4 Engelhard fabricated 1343.50 9.3350 InvGrBd 11.33 +0.02 3.5 209.10 1.00 2.1 Soybeans,No.1 yllw IL-bp,u GlblAlloc t 16.31 +0.12 0.3 iShCoreS&P500ETF IVV PwrShrs QQQ QQQ 110.91 1.28 –0.8 Handy & Harman base 1245.75 6.0500 LowP r 48.27 +0.52 1.1 146.10 1.66 4.9 Wheat,Spring14%-pro Mnpls-u BlackRock Funds Inst M iShCoreS&PMdCp IJH PS SP500LoVoltlPrt SPLV 40.30 –0.02 4.5 Handy & Harman fabricated 1382.78 4.6800 LowPriStkK r 48.24 +0.52 1.1 113.61 2.17 3.2 Wheat,No.2 soft red,St.Louis-bp,u EqtyDivd 21.29 +0.11 1.9 Metropolitan West iShCoreS&PSmCpETF IJR SPDRBarclaysHiYdBd JNK 34.66 0.70 2.2 LBMA Gold Price AM *1259.20 4.3450 MagIn 88.89 +1.06 -0.6 110.83 0.05 2.6 Wheat - Hard - KC (USDA) $ per bu-u iShCoreUSAggBd AGG SchwIntlEqty SCHF 27.64 1.54 0.3 LBMA Gold Price PM *1254.60 n.a. GlblAlloc 18.04 +0.13 0.6 TotRetBd 10.85 +0.01 2.6 81.91 0.49 9.0 Wheat,No.1soft white,Portld,OR-u OTC 78.69 +1.45 -5.7 iShSelectDividend DVY SchwUS BrdMkt SCHB 49.88 1.20 1.7 Krugerrand,wholesale-e 1296.57 HiYldBd 7.24 +0.05 3.2 TotRetBdI 10.85 +0.01 2.7 12.00 –1.07 17.3 Puritn 20.25 +0.15 0.1 iSharesGold IAU SchwUS LrgCap SCHX 49.42 1.08 1.7 Maple Leaf-e 1309.04 StratIncOpptyIns 9.69 +0.01 -0.2 TRBdPlan 10.22 +0.01 2.8 119.14 0.35 4.5 Food SrsInvGrdF 11.34 +0.02 3.5 iShiBoxx$InvGrCpBd LQD SPDR DJIA Tr DIA 178.92 1.03 2.8 American Eagle-e 1309.04 MFS Funds Class A 82.65 0.66 2.6 Beef,carcass equiv. index TotalBond 10.54 +0.02 3.6 iShiBoxx$HYCpBd HYG SPDR GldTr GLD 118.77 –1.07 17.1 Mexican peso-e 1511.15 205.92 D ValueA p 33.93 +0.45 3.8 111.15 0.42 5.1 choice 1-3,600-900 lbs.-u Fidelity Selects iSharesJPMUSDEmgBd EMB SPDR S&PMdCpTr MDY266.34 1.66 4.8 Austria crown-e 1225.02 select 1-3,600-900 lbs.-u 195.89 Dimensional Fds MFS Funds Class I 109.35 ... 1.5 Biotech r 177.93 +4.10-22.0 iShMBSETF MBB SPDR S&P 500 SPY 208.00 1.01 2.0 Austria phil-e 1309.04 1.1150 ValueI 34.11 +0.45 3.9 56.91 1.21 2.0 Broilers,dressed 'A'-u 5GlbFxdInc 11.12 ... 2.4 Health r 188.52 +2.52 -9.0 iShMSCIACWIETF ACWI SPDR S&P Div SDY 80.79 0.82 9.8 Silver, troy oz. 0.8732 Mutual Series 67.51 0.60 4.1 Broilers, National comp wghtd-u,w EmgMktVa 22.73 +0.37 11.7 Fidelity Spartan iShMSCIEAFEMinVol EFAV TechSelectSector XLK 44.52 1.02 3.9 Engelhard industrial 16.2000 2.0700 50.57 0.82 1.2 Butter,AA Chicago EmMktCorEq 17.16 +0.24 9.2 500IdxInv 73.61 +0.74 2.5 GlbDiscA 28.91 +0.44 0.2 iSharesMSCIEAFESC SCZ UtilitiesSelSector XLU 48.68 –0.61 12.5 Engelhard fabricated 19.4400 142.75 58.24 1.59 –0.8 Cheddar cheese,bbl,Chicago Fixd 10.31 ... 0.4 500IndInst 73.63 +0.74 2.5 GlbDiscz 29.42 +0.45 0.2 iSharesMSCIEAFEETF EFA VangdInfoTch VGT 110.26 1.57 1.8 Handy & Harman base 16.2550 142.75 34.94 1.78 8.5 Cheddar cheese,blk,Chicago IntlCoreEq 11.41 +0.14 0.6 Fidelity Spartan Adv iShMSCIEmgMarkets EEM VangdSmCapValue VBR 103.17 1.75 4.5 Handy & Harman fabricated 20.3190 72 34.65 1.67 –1.1 Milk,Nonfat dry,Chicago lb. IntSmCo 17.39 +0.13 1.5 500IdxAd 73.63 +0.75 2.5 O iShMSCIEurozoneETF EZU VangdHlthCr VHT 127.65 1.03 –3.9 LBMA spot price £11.2109 3227 11.84 2.78 –2.3 Cocoa,Ivory Coast-w IntSmVa 18.68 +0.21 0.4 Oakmark Funds Cl I iShMSCIJapanETF EWJ VangdDivApp VIG 81.70 0.55 5.1 (U.S.$ equivalent) 15.9800 1.2889 ExtMktAd r 50.55 +0.94 0.7 44.09 0.02 5.4 Coffee,Brazilian,Comp Dimensional Fds iShMSCIUSAMinVol USMV VanguardFTSEDevMk VEA 36.60 1.58 –0.3 Coins,wholesale $1,000 face-a 14129 1.4516 IntAd r 35.55 +0.56 -1.1 EqtyInc 28.88 +0.42 1.1 281.19 1.91–16.9 Coffee,Colombian, NY iShNasdaqBiotech IBB VanguardFTSEEmgMk VWO 35.50 1.87 8.5 0.6150 US CoreEq1 17.55 +0.25 2.7 TotMktAd r 59.95 +0.70 2.2 Oakmark 63.62 +1.24 1.2 112.17 0.06 1.3 Other metals Eggs,large white,Chicago-u iShNatlAMTFrMuniBd MUB VanguardFTSEEurope VGK 49.17 1.17 –1.4 *990.0 13.30 US CoreEq2 16.70 +0.26 2.6 First Eagle Funds OakmrkInt 20.78 +0.56 -2.7 100.97 1.00 1.5 LBMA Platinum Price PM Flour,hard winter KC iShRussell1000Gwth IWF VangdAllWldxUS VEU 44.10 1.59 1.6 970.0 0.56 US Small 29.07 +0.64 2.8 GlbA 53.82 +0.53 4.8 Old Westbury Fds 115.47 1.07 1.9 Platinum,Engelhard industrial Hams,17-20 lbs,Mid-US fob-u iShRussell1000ETF IWB VangdGrowth VUG 107.79 0.99 1.3 1097.0 64.64 US SmCpVal 31.37 +0.69 3.1 FMI Funds LrgCpStr 12.69 +0.16 1.8 100.17 1.26 2.4 Platinum,Engelhard fabricated Hogs,Iowa-So. Minnesota-u iShRussell1000Val IWD VangdHiDivYld VYM 69.66 0.74 4.4 Palladium,Engelhard industrial 546.0 Pork bellies,12-14 lb MidUS-u 1.3357 VngdInter-Term BIV 86.24 0.09 3.8 Palladium,Engelhard fabricated 646.0 Pork loins,13-19 lb MidUS-u 0.8830 VangIntrCorpBd VCIT 87.16 0.20 3.7 Aluminum, LME, $ per metric ton *1514.0 Steers,Tex.-Okla. Choice-u 130.00 95.10 1.02 1.7 Amount Payable / VangdLgCap VV Copper,Comex spot 2.1675 Steers,feeder,Okla. City-u,w 179.76 Dividend Changes 122.13 1.34 1.7 Company Symbol Yld % New/Old Frq Record VangdMdCap VO Iron Ore, 62% Fe CFR China-s 59.9 VangdReit VNQ 83.22 –0.44 4.4 253 Lakeland Financial LKFN 2.5 .28 /.245 Q May05 /Apr25 Shredded Scrap, US Midwest-s,w Fats and Oils Dividend announcements from April 13. VanguardS&P500 VOO 190.79 1.00 2.1 Steel, HRC USA, FOB Midwest Mill-s 480 Corn oil,crude wet/dry mill-u 42.2500 Tallgrass Energy GP Cl A TEGP 4.8 .21 /.173 Q May13 /Apr21 80.53 1.2 Amount Payable / VangdShrtTrm BSV –0.05 Grease,choice white,Chicago-u 0.3150 Company Symbol Yld % New/Old Frq Record Funds and investment companies VangShrtCorpBd VCSH 80.07 –0.02 1.4 Fibers and Textiles Lard,Chicago-u 0.3300 113.02 2.2 MS Income Secs ICB 3.0 .045 M Apr29 /Apr22 VangdSmCap VB 1.89 Burlap,10-oz,40-inch NY yd-n,w 0.5000 Soybean oil,crude;Centl IL-u 0.3246 82.95 2.7 Increased Nuveen Enh AMT-Fr Muni NVG 1.1 .076 M Jun01 /May13 VangdTtlBndMkt BND 0.06 Cotton,1 1/16 std lw-mdMphs-u 0.6163 Tallow,bleach;Chicago-u 0.3350 GEL 54.51 0.11 3.1 Genesis Energy 8.4 .6725 /.655 Q May13 /Apr29 Nuveen Enh Muni Credit NZF 6.0 .076 M Jun01 /May13 VanguardTotIntlBd BNDX Cotlook 'A' Index-t *68.75 Tallow,edible,Chicago-u 0.4000 Gladstone Land LAND 4.9 .0413 /.04 M May02 /Apr22 VanguardTtlIntlStk VXUS 45.88 1.48 1.7 HCSG 106.15 1.17 1.8 Healthcare Services Group 1.9 .1825 /.18125 Q Jun24 /May20 Foreign VangdTtlStock VTI KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; Hospitality Properties Tr HPT 7.6 .51 /.50 Q May19 /Apr25 Banco Santander ADR SAN 5.0 .05693 Q May10 /May02 VangdTotlWrld VT 58.47 1.37 1.5 G=ICE; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; Credit Suisse Group ADR CS 4.9 .7341 A /May12 VanguardValueETF VTV 83.36 1.13 2.3 R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA: SAP ADR SAP 1.7 1.31018 A /May12 WisdomTreeEurope HEDJ 52.51 2.44 –2.4 *Data as of 4/12 semiannual; S2:1: stock split and ratio; SO: spin-off. TIM Participacoes ADR TSU 2.6 .27764 A Jun17 /Apr22 WisdomTreeJapanHdg DXJ 43.91 3.76–12.3 Source: WSJ Market Data Group For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com STYLE & TRAVEL

NFL Fiscal A Sentimental Note Minicamp Musical bonding over 50 years TURNING POINTS | D2 JASON GAY | D6

© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Thursday, April 14, 2016 | D1 Amazon’s Online Ads for Night Owls Alexa Listens WHILE YOU WERE SLEEPING... And Learns

BY GEOFFREY A. FOWLER

TACO BELL Millions of people in the last sometimes year or so have bought micro- posts meals for phones so that Amazon.com could listen in on them at home. I’m one. breakfast at And I just got more, built into new 1 a.m. Eastern speakers called the Tap and the Echo Dot. time to tempt Some day, Amazon could be people when embedded in appliances, listening they wake up all over your house. Why would you want that? Be-

and decide on cause your own voice is turning breakfast just a into the best input device since

few hours later. the Enter key. And Amazon has found the first ‹ genuinely killer use for it: playing music. This idea is slightly less bon- PERSONAL kers than it TECHNOLOGY sounded in late 81% OF WOMEN in a 2016 2014 when Ama- survey reported keeping their zon debuted its Echo speaker and Alexa talking phones near their beds at night, tech. It—or should I say she?—is an increase from 62% in 2012 an artificial intelligence, like the “bot” Facebook introduced for its Messenger this week. When you call Alexa’s name around an Echo, she wakes up and responds in a perky voice. “Alexa, what’s the weather to- day,” you can ask from up to 20 feet away. “Right now in San Fran- cisco, it’s 54 degrees,” she re- sponds. With no taps or futzing with apps required, Alexa points to a future where not all tech is crammed onto a smartphone screen. It’s impressive technology, though Alexa herself has a long journey ahead. The $180 tube- ‘If you’re up at 2 O’CLOCK in the morn- shaped Echo was a dud when I re- ing because you can’t sleep ... you’re a viewed it in early 2015. Because I mostly just use Amazon for shop- bit more of that captive audience.’ ping, Alexa didn’t know enough

CLOCKWISE FROM TOP LEFT: PEPTO-BISMOL/FACEBOOK; TACO BELL/FACEBOOK; FOLGERS; MCDONALDS/TWITTER; GILLETTE VENUS/FACEBOOK about me—my contacts, my mes- sages, my travels—to even be a Marketers woo customers on their o’clock in the morning because you can’t that point, my phone’s open, and I’m going to bumbling assistant like Apple’s sleep, that is all you’re doing. You’re not do- check Facebook. Then I figure I might as well Siri. And without Google’s smarts, phones in the wee hours of the ing stuff with your kids at the same time or check my email. Then, a half an hour later, Alexa was downright terrible at night; Craving McDonald’s? making dinner at the same time, you’re a bit I’m like, ‘Oh my goodness, I need to sleep.’” Jeopardy. In my house, we primar- more of that captive audience.” Mr. Nasir says that occasionally he’ll inter- ily used the Echo to set kitchen BY CHARLIE WELLS In a 17-second video on its Facebook page, act with ads—mostly for airlines—that he timers, making Alexa a very expen- Pepto-Bismol features the “Peptocopter,” a sees on his mobile phone at that time. sive spaghetti assistant. Mobile and social-media advertising is try- helicopter that zooms out of an elevator and “You’ve got your guard down,” he says. Since then, though, Alexa’s ing a new frontier: late, late night. into a corporate meeting. The Peptocopter “Really, we’re dreaming. And if an airline been in school—and is proving Marketers are posting videos, photos and then delivers Pepto-Bismol via a parachute to wants us to dream of somewhere and of es- how gadgets can become more messages after bedtime on Facebook, You- a businessman with an upset stomach. Like caping our reality, I can see how that makes useful when you just talk to them. Tube, Twitter and Instagram, tailored for many late-night videos, the plot is silly, sense.” Alexa’s always been able stream phone addicts who wake up in the wee hours something a customer might actually want to Traditionally, advertisers market to con- music, but was limited in her and check their social media. The tone is share with his or her friends on social media. sumers during the day. Online, many compa- sources. In February, she gained quirky, a chance for companies to be creative It was most recently posted at 12:01 a.m. nies have tended to follow a predictable mar- the ability to play Spotify, the all- without going big-budget. And a drowsy, cap- Eastern time. keting pattern, posting to social media in the you-can-eat streaming music buf- tive audience can enjoy some slightly off-kil- Shaaz Nasir, a 27-year-old from Ottawa, morning, at noon, and then at night as people fet. Spotify turned Alexa into an ter humor, the thinking goes. Canada, has gotten sucked into late night on- are leaving for work. According to Scott incredible DJ: Now I just name any “It reminds me a lot of the advertising line ad-viewing. The former management Heimes, chief marketing officer at SendGrid, artist, song or playlist aloud, and that you used to get sold on traditional TV on consultant who now runs Mindthis Magazine an email-technology company, 70% of clients’ the dance party begins. The audio overnight,” says Laura Beaudin, a partner often gets notifications from his staff around marketing emails are sent during normal industry is rightly feeling threat- who works in customer strategy and market- the globe, at all hours. “I’ll get a ding at 3 hours, and 30% during off-peak hours. ened by Alexa: Sonos recently an- ing at consulting firm Bain. “If you’re up at 2 a.m. from someone from Tokyo,” he says. “At Please see ADS page D2 Please see ALEXA page D4 New Headaches for the Flier Making Several Stops

BY SCOTT MCCARTNEY stops. About 15% to 20% of the tickets his company buys fall into American, Delta and United that category. He’s also running have new pricing rules that could daily reports to see if people easily raise the cost of many trips. booked tickets that could have Think of it as making a six-pack of been bought at lower prices. soda twice as expensive as buying “In order to protect ourselves six cans individually. and our pocketbooks, we had to do The three biggest airlines in the this,” he says. “Booking travel is U.S. decided in March to block complicated enough as it is, and their cheapest the airlines have thrown a big THE MIDDLE prices on flights wrench into it.” SEAT from being used Steve Crandall, president of on many connect- Discount Travel Brokerage Ser- ing and multicity vices in Jacksonville, Fla., thinks trips. Previously, reservation com- the change will bite vacationers puters would find the lowest price even more than business travelers for each flight in an itinerary and because they are booking on their add them up to one price for the own. “The average guy is just trip. plugging in cities,” he says. But now the cheapest prices Airlines say they’ve been put- can’t be combined. To get the ab- ting lots of deeply discounted solute lowest prices on a trip with fares into markets—some as low multiple stops, you have to buy as $39—to counter fast-growing each flight separately. discounters like Spirit Airlines.

For a May 4 trip from Chicago GETTY IMAGES And some key hubs have seen to Des Moines, Iowa, with a May 5 American, United and Delta have blocked easy access to their cheapest prices on many connecting and multicity trips. widespread fare wars, such as Dal- return flight from Kansas City, las, where American, Southwest, Mo., back to Chicago, American of- for $719 individually. But the same have to rebook. And if one flight is to adjust to the new airline pricing Spirit and Virgin America are all fers a fare of $522. But if you buy flights on one ticket cost $1,205, delayed and you miss your next setup. offering supercheap tickets to fill those flights individually, you’d or 68% more, for a May 2-6 itiner- flight, you’d be considered a no- Frank Dolce, corporate travel up seats. spend $107 to get to Des Moines, ary. show and might be required to pay manager at OSI Systems Inc., a Since reservation systems look then $65 to fly from Kansas City Though the savings can be sub- a higher fare to get on a substitute California tech company, says he for low prices to cobble together to Chicago, or a total of $172. stantial, there are pitfalls to buy- flight. disabled the multicity capability the least expensive tickets, the United flights from Newark, ing multiple one-way tickets. If But travel agents say the sav- on the firm’s booking system. cheap fares used on connecting N.J., to Chicago to San Diego and plans change, you’ll have to pay a ings far outweigh the potential pit- Travelers now must talk to an flights and multicity trips lowered back the same way can be bought $200 penalty on each ticket you falls, and they’re now scrambling agent to book trips with multiple Please see PRICING page D2 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com D2 | Thursday, April 14, 2016 THE WALL STREET JOURNAL. STYLE & TRAVEL 50 Years of Music Together Deepen a Trio’s Bonds

Symphony-going ritual They park on the 9th level, a practice they adopted so they brings women together; don’t forget where the car is, close to 600 performances which they once did. Downstairs, the parking attendant greets them. BY CLARE ANSBERRY He has worked at the garage for years and watches on symphony Lights dim, and the music di- nights to make sure they get in. rector strides onto stage of Heinz “The sign can say “Full’ and he Hall. In the middle of Row P, three would stand outside in the cold women—sisters Anastasia Savas and snow waiting for us to make and Helen Chakeres and their sure we get a space,” says Helen. friend Katherine Dickos—settle in This evening, under the direc- their seats for what is close to tion of conductor Manfred Honeck, their 600th Pittsburgh Symphony the symphony performs Brahms’s performance. Their first was more Piano Concerto No. 2 in B-flat ma- than 50 years ago. jor, followed by the All University Over the years, dozens of Choir singing Leonard Bernstein’s women from their Chichester Psalms. The women re- TURNING tight-knit Greek call the piano soloist, Emanuel Ax, POINTS community have from his performance with the joined them, but symphony four years ago. all have since After the concert, the women stopped coming, their interests cross the street to their favorite shifting, their health failing. Some restaurant and greet the hostess moved, and others died. Although by name. Anna orders Tanqueray it takes more effort with age, with a lemon twist and Tika, De- these three, now in their 80s, re- war’s with a twist. Helen debates turn for each Saturday-night per- onion soup or a pecan ball and formance—seven this season, and goes with the former. as many as 14 in past seasons. Con Brio Over food and drinks, they re- “We don’t want to stop,” says Left to right, Tika Dickos, Helen view the performance. Anna Anastasia, who goes by Anna. Go- Chakeres and Anna Savas attend every thought the choir was particularly ing out, listening to music and en- Saturday night performance of the soothing. Tika liked the cello solo joying each other’s company make Pittsburgh Symphony at Heinz Hall for in the third movement of Brahms. for an uplifting evening, while sur- the Performing Arts, left. Helen was amazed by the poise of facing thoughts of earlier times. a young boy soprano. They like “It’s a night to remember,” she Brahms, but Tika’s favorite com- says. night bite and cocktails. One night, poser is Bach. Anna and Helen pre- Music connects people on many Mrs. Chakeres invited everyone to fer Chopin. levels. “Shared musical prefer- her house for lobster and elabo- “Tika, hum Chopin’s Polonaise,” ences can create and strengthen rate pastries she made herself. Anna says, turning to Tika. She bonds,” says Jeanette Bicknell, au- Friends from their Greek and Helen defer to Tika when try- thor of “Why Music Moves Us.” church and schools joined the ing to come up with a composer, People tend to feel good about group, buying season tickets for composition or conductor. those who like the same music, several years, and then handing They see and hear the sym- thinking they have similar person- them off to someone else. Anna phony differently now that they alities or values, says Dr. Bicknell, continued teaching second grade. are older. Tika says she listened

who researches the philosophy of FROM TOP: CLARE ANSBERRY/THE WALL STREET JOURNAL; AMY CICCONI Helen and Tika raised their fami- superficially when she was youn- music. lies. Their children played in the ger. “I just liked the way it sounds. When listening to music is part the Metropolitan Opera of New Their mother was dear friends youth symphonies and sang in the As you get older, you get a little of a ritual over time, bonds can York and Tika, then about 5, would with Joanna Chakeres, whose hus- choirs. more immersed,” she says. “You strengthen, layered with reminis- sing to his customers. She remem- band owned nightclubs around the The outings provided enjoy- can hear the Brahms 120 times, cences. “Music really does evoke bers crying when, after months of city. Helen ended up marrying ment but also constancy in more and it will be different each time. all kinds of images and memories,” practicing her scales on the piano, Mrs. Chakeres’s son, Tony. Anna unsettling times. Their parents Every conductor paces it differ- says Melia Tourangeau, CEO of the she played Beethoven’s Minuet in never married. The elder Mrs. died, as did Helen’s husband. Anna ently.” Pittsburgh Symphony Orchestra, G. “I don’t cry that easily. Music Chakeres and Mrs. Savas loved the was diagnosed with cancer about For Helen, the symphony has which is celebrating its 120th anni- does that to me.” arts, especially the symphony, be- two years ago. She saw no reason become even more of a welcome versary this year. “It’s more than a Tika and her mother moved to cause it was easy to understand. to miss the symphony. Her treat- tonic. “Just hearing the music, you visceral response. It’s deeper than Pittsburgh, after her parents sepa- At home, they spoke Greek, their ments were in the afternoon, she forget all of your problems,” says that,” she says. rated, and she met Helen and Anna first language. “They could under- says, the performances in the eve- Helen. “You go, sit and enjoy.” These three women learned a Savas at the local Greek church. stand music better than the plays,” ning. “The music makes me relax,” With Anna, the music has love of music early, from their par- Their father, born in Greece, says Anna. says Anna, who is a 20-year mem- grown more evocative. As soon as ents. Katherine, who goes by Tika, owned restaurants and buildings The two older women bought ber of the Pittsburgh Symphony the symphony starts, her mind be- had a Crete-born mother who in downtown Pittsburgh. Their season tickets. Anna drove. Tika Association, having joined after gins to wander. “It brings back played the mandolin in the orches- mother, Maria, who studied piano and Helen, then young wives, her mother, also a member, died. memories of my past life,” she tra there. Her father, also from in Paris, played for guests when started coming. The evenings were The threesome prefers evening says. It connects her with her Crete, studied chanting with they had dinner parties at home. festive and formal. The women performances to matinees. “Who mother, the others who have been monks. The couple moved to Both daughters played piano. Anna wore jewelry and furs. The con- wants to get all dressed up in the a part of the group, the places Charleston, S.C., where her father studied violin. “She wanted to ex- ductor wore tails. After perfor- afternoon?” asks Anna. Helen usu- they went. “We had a wonderful ranaGreekgrocerystore.OnSat- pose us to the arts,” says Anna, mances, they went to top restau- ally drives unless it’s snowing. time. It was a beautiful event,” she urday afternoons, he listened to the eldest. rants all over the city for a late- Tika drives in inclement weather. says. “It still is.”

mean local passengers will have a ers, has complained that Ameri- PRICING better chance to use those fares.” can, Delta and United all made the Delta, which initiated the rule change quickly one after the change that American and United other, driving up prices. Continuedfromthepriorpage matched within 24 hours, declined BTC asked the Justice Depart- ticket prices on routes airlines to comment. A spokeswoman for ment to add the fare issue to a never intended to discount. United says the Chicago-based car- continuing investigation into American, Delta and United de- rier made the change because “we whether American, Delta, United cided their own low prices had intend for passengers to pay the and Southwest colluded to keep gone too far and they imposed origin-to-destination fare” even if fares high by reducing flights in new rules on tickets. the flights involved are priced many markets. The Justice Depart- Airlines look at pricing through lower for other itineraries. ment didn’t return calls for com- a different lens from their custom- Vicki Rush, owner of A&I Travel ment.

ers. Instead of adding up the fare Management in Memphis, Tenn., ROBERT ALEXANDER/GETTY IMAGES “There is an unfairness to this, from each flight on a trip, airlines thinks lots of consumers will be Flying from Columbia, S.C., to Seattle, then on to Los Angeles and back to and unfairness made worse by lack look at each starting point-to-des- stung by the pricing change. Columbia at the end of April costs $733 on one Delta ticket. Split the trip into of disclosure by the airlines,” says tination trip as its own market. Whether booking through an on- three separate one-way tickets and you’d pay $414 for the same flights. Kevin Mitchell, BTC chairman. Airlines want the ability to set line travel agency or through an Airlines deny any collusion, and pricing for a Kansas City-Honolulu airline website, shoppers will see a chases. Now, due to competition from note that ticketing rules get dis- trip as a unique product, not sim- price for the ticket they want Airlines have a long history of those lower-fare rivals, Saturday- tributed daily along with fare ply the sum of flights from Kansas without realizing that, counterin- using arcane rules to keep busi- night stay requirements are virtu- changes and are monitored closely City to Los Angeles and Los Ange- tuitively, buying multiple tickets ness travelers and others from ally nonexistent on the big U.S. by airline pricing departments. les to Honolulu. may be a lot cheaper than one making use of their cheapest fares. airlines. Advance-purchase re- Since travel agents began pro- American said in a statement it ticket. When discount airlines first took quirements also have eased dra- testing, American has eased some restricted its cheapest prices “to “Even smart travel managers to the skies, airlines matched matically and business travelers of the restrictions by making some ensure that new lower fares we in- have a hard time wrapping their prices but required advance pur- routinely buy nonrefundable tick- nonrefundable fares eligible to be troduced would be available to head around this,” says Ms. Rush, chase, sometimes 30 days ahead of ets. Most fares are offered one- combined on multicity tickets— passengers flying the route for who thinks the change affects time, to get the lowest fares. They way without a round-trip require- just not the cheapest nonrefund- which the fares were intended.” about 10% to 18% of the bookings imposed Saturday-night stay re- ment, and round-trip tickets are able fares. Connections built with the cheap managed by her company. Her quirements to discourage business routinely constructed in reserva- Until earlier this week, the fares “were absorbing some of the agents are now spot-checking travelers from buying low fares, tion computers as the combination change prohibited all nonrefund- seats that were meant for local bookings that clients put through and made cheap prices nonrefund- of two one-ways. able prices from being combined passengers on the nonstop route,” and rebooking them if it’s cheaper able. One-way fares used to be The Business Travel Coalition, a on tickets. The change only applies the airline says. “These changes to buy the trip as separate pur- higher than round-trip. group of corporate travel manag- to tickets with two stops.

nudge to use the company’s app. vant for a person’s role. A con- Eastern time, with one GIF-like ADS That was around 1 a.m. Eastern sumer “could be a soccer mom at video featuring a woman’s legs time. Other early morning posts by noon, the CEO of her business at 5, and a flowing dress that logged Taco Bell focus on an event several and in ‘just me time’ at midnight,” over 8 million views. Gillette’s Continuedfromthepriorpage hours away: breakfast. he says. Facebook page for men doesn’t Meera Patel says she is now Taco Bell is testing out late- Women having that sort of show a late-night video. surrounded by after-hours digital night messages about breakfast to “just me time” late in the evenings Late-night online advertising advertising. The 24-year-old Lon- see if they can tempt people the seem to be forming a key demo- may catch consumers at a time doner is in a long-distance rela- next morning, possibly breaking graphic for late-night advertisers. when they are more prone to tionship with a boyfriend in To- into their morning routines, says According to a 2016 online survey spend, says Klodiana Lanaj, an as- ronto, and often burns the Jozlynn Rush, social and digital of 500 women by consumer-re- sistant professor at the University midnight oil so the two can have a experience manager at Taco Bell. search firm Influence Central, 81% of Florida Warrington College of

phone call at the end of the day. British clothing retailer Asos ISTOCK reported keeping their phones Business who has studied the ef- Once, late at night, Ms. Patel saw a has made a habit recently of post- near their beds at night, an in- fects of late-night work-related sponsored tweet for McDonald’s. ing pictures of junk food on Insta- A drowsy, captive crease from 62% in 2012. emails on quality and quantity of The post worked so well, she says, gram at around 11 p.m. in the U. Many Procter & Gamble Co. sleep. that it prompted her to leave K.—a branding message that aims audience can enjoy some products that cater to women have “Being approached by a com- home that night and head to a to appeal to its 20-something con- slightly off-kilter humor, begun posting on social media in pany might hurt your sleep be- nearby, 24-7 Golden Arches. It was sumer. the early morning hours. On the cause you’re thinking about what December. Ms. Patel says she also often marketers think. Facebook page for skin-care brand to buy and whether you should Other food and beverage com- comes across flash sales late on- Olay, a video that received over buy it,” she says. “On the other panies have made similar moves. line for beauty products, cheap 6,000 views and time-stamped at hand, you might also be more Folgers Coffee released the flights, and inexpensive clothing. cle Marketing Cloud. Companies 12:18 a.m. Eastern time in January likely to buy because you don’t “Wakin’ Up Alarm Clock” app in The late-night sweet spot for can do this by picking up on a con- shows two women leaving a yoga have the inhibitions you had not to 2013, which acts not just as a digi- advertisers involves thinking not sumer’s “digital body language,” class comparing weekend sched- spend money.” tal reveille, but also presents users just about time of day, but also he says, by discerning how people ules. The caption: “Your social cal- According to Dr. Lanaj, the pool with inspiring messages, shareable about what role a consumer is are using their phones, social me- endar might show your age. With of mental resources we have to on social media. Last December, playing on the 24-hour clock, says dia, video platforms, and Web Olay, your skin never will.” make decisions shrinks as we use Taco Bell posted a Facebook photo Kevin Akeroyd, general manager browsers. Then, firms can target Gillette Venus razors often them throughout the course of the that combined tacos, emoji, and a and senior vice president for Ora- messages that might be more rele- posts to Facebook at midnight day. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Thursday, April 14, 2016 | D5 ARTS IN REVIEW

PHOTOGRAPHY Lusting After Fame and Fortune

ion, that trade in Robert Mapplethorpe’s Robert Mapplethorpe: fantasy and ideal- 1988 Parrot Tulips’ (left), The Perfect Medium ize the human fig- and 1988 ‘Self-Portrait’ Los Angeles County Museum ure in monoto- (below). of Art and the Getty Center nous tropes. His Through July 31 career was a torious “X Portfolio” of struggle against S&M sessions. The two BY RICHARD B. WOODWARD photography’s bodies of work reinforce bias toward the each other. Mapplethorpe Los Angeles mundane, which sexualized tulips and or- ut will they write others have seen chids, and he liked to in- ‘B about it?” as one of its troduce danger into be- That’s the question unique strengths. nign settings. Emerging Robert Mapplethorpe would LACMA is the from behind the vase in ask his art dealers in the better place to be- “Flower With Knife” 1980s if they got squeamish gin the tour of his (1985) is a slender steel about exhibiting a sexually life. From his late blade, its glinting surface provoking photograph of a teenage years on- burning like a flame. The large penis. As he assessed ward, studying scenes of extreme sex by matters, scandals fueled by graphic arts at the leather-clad men are still the press could only boost his Pratt Institute wincing to behold, and sales. and, after 1969, there are rare instances Critics can hardly avoid living at the Chel- where you sense fear that writing about Mapplethorpe sea Hotel with he might have gone too again this spring. “The Perfect Patti Smith, he far. Medium,” a dual retrospective was a provoca- One of the bonuses of (with more than 300 photo- teur, scavenging the Getty show is a chance graphs and archival objects), images from mus- to view a large selection opened last month at the cle magazines and from the Wagstaff Collec- Getty Center and the Los An- stretching under- tion of Photographs. Pur- geles County Museum of Art. pants and T-shirt chased in secret by the A companion two-volume cat- on an armature as museum in 1984, they ha- alog from Getty Publications is sculpture. There is ven’t been exhibited in thick with commissioned es- a film here of the bulk since 1992. These says. Another tome from Phai- 22-year-old hav- were photographs that don is devoted to his flower with Polaroid photography in Mapplethorpe would likely photographs. And this month the late 1960s. But not until have seen at Wagstaff’s New HBO has been broadcasting a 1972, when he met and at- York apartment and they are new feature-length documen- tached himself to Samuel J. exhibited here as a seamless tary. Wagstaff Jr., a wealthy inde- extension of his show. Among The rollout, orchestrated by pendent curator and a dis- the more than 100 examples, the Robert Mapplethorpe cerning photography collector, mainly portraits, is one by Ed- Foundation, is designed to did Mapplethorpe seriously mund Teske from 1967 of a present the entire career of an begin to make pictures with a naked youth submerged in a artist best known for graphic camera. The older man bought mineral bath at Big Sur, a ho- S&M photographs that led to a his protégé a downtown loft moerotic image in which the Cincinnati museum director’s and his first Hasselblad. boy looks either drowned or arrest for exhibiting them, and Mapplethorpe was never a surrendering to pleasure. to denunciations of homosex- great portrait photographer Mapplethorpe was obsessed ual art on the floor of the U.S. except of himself and of his with status. Being known as a Senate. muse, Patti Smith, whose frag- photographer never brought This concerted effort is ile androgyny mirrored his him the social cachet he des- worthwhile and illuminating. own. He once said that art perately sought. Both curators Items from his early years didn’t interest him unless he have wisely not exhibited his suggest he might have been a could explore the darker, un- mid-’80s prints on linen and sculptor with his own twist on known sides of himself. In his silk, an ill-conceived attempt Pop or a jewelry designer. His performances to add decora- determination to succeed in for the cam- tive lush- New York, the relentless en- era, he could A worthwhile effort, ness—and ergy to make art (and money), try out vari- but one that exposes raise the can be felt in every room. ous personae, cost—of his More remarkably, the cura- angel or his limitations. photographs. tors, Paul Martineau at the street tough. He loathed Getty and Britt Salvesen at The many imperfection LACMA, have not bowdlerized wistful photographs he made in his photographs and in peo- Mapplethorpe. Homosexual of Ms. Smith, two of which be- ple. His master printer, Tom desire permeated everything came classic album covers, Baril, might spend an entire he did, from his student days and the less-known 13-minute day in the darkroom removing until his death. In both shows, film he did called “Still Mov- wrinkles on the skin of sub- the male body, photographed ing/Patti Smith” remain cor- jects before his exacting boss nude or revealingly clothed, is nerstones of his legacy. was happy. There are almost presented as a gay sexual ob- The Getty show has fewer no fat or old people in his ject. surprises and inadvertently oeuvre. The sole unhealthy It’s easy to forget that spotlights Mapplethorpe’s person depicted in either when first widely exhibited in weaknesses. The nudes in one show is a self-portrait from the 1980s, his photographs of room—muscular black men, 1988 as he was dying of AIDS. men were brash and discon- their torsos tightly cropped Brandishing a cane topped certing. His ascent in the art and placed in shallow re- with a silver death’s head, he world provided generations of cesses—have a cold, glossy sits in a chair like Satan on his gay artists the courage to ex- perfection, and are a terrific throne. His most haunting

amine their own sensibilities ROBERT MAPPLETHORPEbore. FOUNDATION (2) Mapplethorpe rendered portrait, and one of his most without self-censorship. flesh as marmoreal rather honest, it has a central place At the same time, the ing his nipple pierced. crate, a lampshade, a Jesus fied with the devil. than as living tissue, and his in the Getty galleries, a com- shows also expose Mappletho- His Catholic upbringing is figurine, holy water and a Few artists were so single- compositions often fell back manding reminder of his piv- rpe’s limitations. What has ex- often cited as the source of his hammer—incorporated Chris- minded in their drive for fame on a rigid symmetry, which he otal role in the unfinished cited most photographers attraction to ritual, and to the tian symbols. In the documen- and riches. (His only New York mistook for classicism. conversation about fame, sex, since the invention of the me- punishing idea of sin. Several tary, friends and sexual part- equal during his lifetime was Far more inspired is Mr. money and art. dium is its versatile realism. early pieces—including a 1970 ners observe how much this Andy Warhol, with whom he Martineau’s idea to install a He was drawn instead to combination dressing table young “ruined Cupid” (Fran had a tense rivalry.) Map- group of flower photographs Mr. Woodward is an arts genres, pornography and fash- and altarpiece made from a Lebowitz’s description) identi- plethorpe had experimented in the same room with the no- critic in New York.

MUSIC An Electronic King Goes His Own Way

BY MARTIN JOHNSON and elements of jazz fusion tle track, “Spectrum” and tage prog-rock groups like into a potent mix. The name “All I Can Do”—shift gears. King Crimson. With “Become n Darkside, a duo with of the band recalled the 1973 The music is less brooding, Alive,” Mr. Harrington illus- I Nicolas Jaar, Dave Har- Pink Floyd recording “Dark more narrative in structure trates the vibrance and diver- rington, a master of Side of the Moon,” and in and often up-tempo. The title sity of New York music late many instruments best many ways the sound seemed track features 11 musicians in the 20th century while known as a guitarist, created like an updating of it. Dark- and “All I Can Do” has six. smartly updating it. some of the most compelling side was particularly well re- With the muscular bass lines, and widely adored electronic ceived. Pitchfork hailed the soaring harmonies, and sear- Mr. Johnson writes about music of this band’s amal- ing solos, the music is remi- jazz for the Journal. decade. “Be- gam of styles niscent of bands like the come Alive” Dave Harrington’s and cited its Tony Williams Lifetime and (Other Peo- new album is a 2013 record- John McLaughlin’s Mahav- Pepper ... ple) is the ing “Psychic” ishnu Orchestra, which strad- And Salt new release showcase of the as one of the dled the divide between jazz from the 30- variety of styles and best albums and rock in the late ’60s and THE WALL STREET JOURNAL year-old’s of the decade. early ’70s. first solo genres he’s mastered. Dark- As is often the case with a project— musician’s first full length re- which is cording, “Become Alive” is a billed as the Dave Harrington side’s 2013 remix showcase for the variety of Group—since Darkside went of Daft Punk’s styles and subgenres that Mr. on hiatus in the summer of “Random Access Harrington has mastered. He

2014. On the album, Mr. Har- Memories” was CHAD KAMENSHINE/KYLEhad GOOD jammed around New rington is wending his way named one of Dave Harrington’s (left) first solo project York, then met Mr. Jaar while back to his roots: the late- the best record- since Darkside is ‘Become Alive’ (cover above). both men were students at ’60s and early-’70s experi- ings of the year Brown University. Mr. Har- mental jazz that inspired his by the New sic “White lar, serpentine bass clarinet rington grew up in the city musical career. Yorker. Light/White lines from John Stanesco. and studied at the Harlem During its brief existence, “Become Alive” Heat” Instead the The recording’s middle tracks School of the Arts with great Darkside produced moody starts with “White Heat,” a tone and mood recall are more atmospheric and musicians like guitarist Kel- and dense electronic music brooding track highlighted by the Radiohead recordings cinematic, highlighted by vyn Bell and bassist Brad that was highlighted by Mr. keyboards and guitar. It has a “Kid A” and “Amnesiac” mi- “Steels,” a solo track featur- Jones. He loved the late-’90s Harrington’s virtuosic work. pristine sound and glacial nus the vocals. The second ing Mr. Harrington’s excellent Manhattan downtown, espe- The band fused dub, prog pace; no one will link it to track, “Slides,” maintains the pedal steel guitar work. But cially the music of Bill Frisell rock, electronic dance music the Velvet Underground clas- mood but is built from stel- the final three pieces—the ti- and John Zorn as well as vin- “Any capital gains?” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com D6 | Thursday, April 14, 2016 THE WALL STREET JOURNAL. SPORTS My Dream Life in the NFL...Accounting

Fort Lauderdale, Fla. So there I was, in sun-kissed Florida, a surprise invite to an off-season camp featuring some of the elite players in the NFL. Just a few feet away, there was Julius Peppers, nine-time Pro Bowler for the Green Bay Packers—Julius Peppers! This was going to be so cool. Me and Julius Peppers and a bunch of other NFL dudes, hanging JASON out, listening to coaches, GAY experts, some of them former pros, telling us war stories, getting super ex- cited about, you know, the important stuff, the glamorous stuff, like… Asset/liability mismatches. Gross margin percentages. Compound interest. Bonds. Mmmmm…bonds! OK so it wasn’t NFL minicamp. It was NFL finance camp. Nobody made a one-handed catch. But nobody blew out an ACL, either. Mike Ditka didn’t bite the end off a cigar and give a rowdy pep talk. But Univer- sity of Miami finance professor Henrik Cronqvist did deliver a dynamite presen- tation about the psychology of money. (And it really was in Florida. In a first-floor ballroom at the Marriott. With snacks.) The camp was hosted by NFL Player Engagement—the league’s branch dedi- cated to on and off-field lives of its players—with the help of TD Ameritrade and the University of Miami School of Business Administration. The idea be- hind it is pretty straightforward: make pro football players financially fit, espe- cially midcareer and veteran players contemplating the road’s end. This year’s commitments and financial advisers ea- course. Amid the cautionary tales of at Columbia, worked in the league’s to view money as “future freedom”—not theme: building generational wealth. ger to take their business, it’s easy for bankruptcies and careers cruelly short- benefit office, and is now a director for just for themselves, but generations. “This week is about empowerment,” them to become disconnected from the ened are indeed some savers as obses- National Fire & Casualty Investments. With the NFL continuing to climb, Charles Way, the former New York Gi- day-to-day of their money. Reconnect- sive about budgeting as they are train- Kerney said that as a rookie with At- Kerney said his goal was to “change the ant and now vice president of the ing is what this camp, now in its sec- ing. Last season, the Journal’s Kevin lanta, the veteran Lester Archambeau, mind-set from funding [kids’] college ed- NFLPE. “This week is about influence. ond year, is for. “I actually got a new ac- Clark detailed the frugal competition a Stanford graduate, pulled him aside ucations to, ‘How do I someday become This week is about impact. I’m asking countant and new financial adviser after among the Washington Redskins, and handed him a copy of “The Mil- a family office, because I am [Houston you to take advantage of it.” last year’s program,” said Josh Martin, a which included quarterback Kirk Cous- lionaire Next Door,” Thomas Stanley star] J.J. Watt and I just grossed $200 Yes, we have all heard the horror linebacker for the New York Jets. ins driving a dented van to practice. and William Danko’s treatise on build- million before my 30th birthday.’” stories about pro athletes being sepa- The mood in the ballroom was busi- Stephen Tulloch is another saver. A ing wealth. “When a guy like that Not every NFL attendee had a rated from their money—seven, eight, nesslike. A lot of players brought their veteran linebacker who’s earned tens walks by and says, ‘Hey rook—read mega-contract or was a mogul-in-train- sometimes nine-figure earnings wiped spouses (one player, Chicago’s Antrel of millions and most recently played this,’ you read it,” Kerney told me. (To- ing, however. Josh Martin, the Jets out by bad purchases, bad allies, bad Rolle, would be represented by his for Detroit, Tulloch told me he compari- day, he enjoys reading Warren Buf- linebacker, played for four clubs last investments. Some of it is youth. Some mother). There was animated talk about son shops for cars and took his time fett’s letters to investors.) year—Kansas City to Tampa to India- of it is irresponsibility. A lot of it is hu- diversification, rollovers, retirement, in- before buying his first house. He said Kerney retired in 2010 after an 11- napolis to New York in the space of man.IfIwereaNo.1draftchoice,I flation, and what you should really ask a his goal was “not just being rich for to- year career. He’s not so far removed three months. would be the guy who bought a Fer- potential financial adviser (any tough day but having money for my kids’ from football and the casual lingua “I bounced around,” he said. “I have rari, and then a Ferrari for my Ferrari question you want!). Charts were shown kids’ kids’ future.” franca of playing life, and his keynote to think about life beyond football. Re- so it didn’t get lonely. detailing how much a player needed to “It can go so fast if you don’t take could have been delivered at midfield in ality hits you quick, so you have to That’s not the way to do it, of save to maintain financial comfort into care of it,” Tulloch said. “I try to embed a practice. He talked about the differ- maximize your money.” course. Athletic careers can be peril- their twilight. Luxury goods were pooh- it in the guys now: It’s not what you ences in cost of living in NFL towns That’s not NFL talk. That’s wise ad- ously short, especially in a workplace poohed as extravagances—OK some- make, but what you save.” (Charlotte’s a lot less expensive than vice for anyone. By now I’ve accepted like the NFL, with your lifetime earnings times, but not as a habit. The camp’s founder is Pat Kerney, Seattle; Denver’s pricier than Dallas) I’m never going to win a Super Bowl. peaking in your 20s, and if you’re lucky, The league is happy to show off the the 2007 NFC Defensive Player of the and the common mistakes (max out But I can probably do something about 30s. With players bombarded by team responsible side of player life, of Year, who went on to business school that 401(k), people!). He urged players compound interest. Heard On The Dawn of the American Hockey Revolution The Field BY VIPAL MONGA President Obama needled Cana- dian Prime Minister Justin Trudeau last month by suggesting that the United States was better at hockey than its Northern neighbor. “Where’s the Stanley Cup right now?” Obama asked. “I’m sorry, is it in my hometown with the Chicago Blackhawks? In case you Canadians were wondering, where is it?” Trudeau made a meek reference to the higher number of Canadian born players on the Blackhawks’ cup winning team, but it was a feeble comeback. Obama’s taunts underline a looming truth: Americans are be- coming a stronger force in hockey. In fact, 2016 may go down as the year Atlético Stuns Barça the U.S. truly began its takeover of MADRID—No trophy in club soc- the National Hockey League. cer is harder to defend than the Never mind that this year, for the Champions League. In fact, since first time since 1970, no Canadian the tournament entered its mod- team made the NHL playoffs, which ern era in 1992, no team in Europe started Wednesday. Forget that no has done it. Canadian team has won the cup since Not the great Ajax side of the 1993. It’s everything: Not only did mid-1990s, not the Real Madrid ga- Blackhawks forward Patrick Kane be- lacticos, and, after Wednesday come the top scorer this year, the night, not Barcelona. first time ever an American has done The defending champions lost it, there were also more Americans 2-0 to Atlético Madrid to crash out than any other nationality among the of the Champions League in the league’s top 10 scorers. quarterfinals, 11 months after lifting The No. 1 pick in this year’s draft the trophy in Berlin. At one end of will almost certainly be Auston Mat- Chicago Blackhawks forward Patrick Kane became the first American to lead the NHL in scoring. the field, Barca ran headfirst into a thews. The 18-year old prodigy brick wall of Atlético defenders. would become only the seventh “There was a little bit of frustration over the game up North that some macy up North can’t be taken for And at the other, the club leaked American to go first in the draft, but at the beginning. We were starting see as arrogance. granted. A survey released in 2013 two goals to Atlético forward An- the third in the last 10 years. He’ll from scratch.” Don Cherry, former coach of the by Hockey Canada and equipment- toine Griezmann (pictured)—a also be the first No. 1 pick to come Back then, there were fewer than Boston Bruins and a longtime NHL maker Bauer Hockey Inc., reported header in the 36th minute and an from the decidedly untraditional 1,000 hockey players in the whole commentator, once ridiculed Ameri- that 90% of Canadian children 88th-minute penalty kick. hockey hotbed of Scottsdale, Ariz., state registered with USA Hockey, cans for how little they knew about weren’t playing hockey. The findings “We did not suffer, had the ball, instead of the U.S. hockey cradles in and Modano could count on one hockey. He recalls scoffing from the set off a round of hand-wringing controlled the game,” Barcelona the upper Midwest or Northeast. hand the number of ice rinks in the bench when he was a player with the across Canada, which might be the manager Luis Enrique said, high- For the last three years running, Dallas/Fort Worth metroplex. As of Hershey Bears American Hockey country’s second favorite pastime, lighting his side’s 72% possession. roughly a quarter of all NHL players last year, there were 13,500 regis- League team in Pennsylvania in 1954. after playing the sport itself. “Then they took advantage of our in the league have been American, tered players in Texas, and there are During a game against the Pitts- Cherry is a big Canada booster and mistake and got ahead.” the highest proportion on record, and now nine rinks in the area, including burgh Hornets, he heard fans say sees no end to the country’s hockey Across Iberia in Lisbon, Bayern there are more players registered seven that are operated by the first- players were “dribbling” the puck supremacy. He points to the last two Munich held on for a 2-2 draw at with USA Hockey than ever before. place Dallas Stars. down the ice, instead of the proper Olympic gold medals, won by Can- Benfica to progress to by an aggre- Things look a lot different today Of course, those numbers still “stickhandling.” ada—the last one easily—and the gate score of 3-2. For manager Pep than they did about 25 years ago. pale in comparison with Canada’s. But today, it’s Canadians who are ability of a country with a population Guardiola, it means a seventh trip to Mike Modano, the leading American- There were more players registered shifting their approach to the game one-tenth the size of the U.S. to keep the Champions League’s penultimate born goal scorer in NHL history, re- with Hockey Canada last year than as the U.S. makes its presence felt. churning out high-end talent. round in the space of seven years. members moving to Dallas with the all the players, coaches and officials “It’s changing the character of the “You have to realize that the only Rounding out the final four are Minnesota North Stars in 1993. combined in the U.S. game,” Cherry said. “We used to call thing Canadians are noted for really Real Madrid and Manchester City, “At the start, it was really just a Canadians have long rolled their them hockey sweaters, but the in the world is hockey,” he said. who both punched their tickets on novelty,” he said, recalling that fans eyes at their neighbors’ ambitions. Americans called them jerseys, so “There’s really no comparison. No Tuesday. The matchups will be de- didn’t know how to watch the game Canadian teams don’t often have to now we all call them jerseys. The country can touch us.” cided by random draw on Friday. and the radio and TV broadcasters rely on miracles to win games. jargon has all changed.” But if current trends continue, the

—Joshua Robinson ILLUSTRATION BY SCOTT POLLACK:didn’t JONATHAN DANIEL/GETTY IMAGES (KANE); HOF: PAUL WHITE/ASSOCIATED PRESS know how to call the plays. There’s also a sense of ownership There are signs that hockey’s pri- U.S. might get close.