Bad Loans Hit the Oil Patch Were Classified on the List

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The Surprise One Home, Rock Reunion Many Buildings MANSION | M1 ARENA | D1 JASON HENRY FOR THE WALL STREET JOURNAL ****** FRIDAY, MARCH 25, 2016 ~ VOL. CCLXVII NO. 70 WSJ.com HHHH $3.00

DJIA 17515.73 À 13.14 0.1% NASDAQ 4773.50 À 0.1% STOXX 600 335.10 g 1.5% 10-YR. TREAS. g 8/32 , yield 1.902% OIL $39.46 g $0.33 GOLD $1,221.40 g $2.30 EURO $1.1174 YEN 112.90 What’s Pope Francis Washes Refugees’ Feet in Holy Week Rite Belgium News Steps Up

Business&Finance Terrorism

he number of energy Raids Tloans in danger of default is on course to extend Belgian police rounded up above 50% this year at sev- six more people they said were eral major banks, as oil connected to this week’s terror prices pressure producers. A1 attacks, as the government on Thursday acknowledged high- U.S. natural-gas output level counterterrorism failings. hit its highest level ever over the winter even amid low prices, leaving the indus- By Julian E. Barnes try facing a supply glut. C1 and Matthias Verbergt Exxon is in advanced talks in Brussels and Damian to acquire a stake in a Paletta in Washington large Mozambique natural-gas project from Eni. B3 The justice and interior min- The launch of Starboard isters both offered to resign a Value’s bid to remove Ya- day after Turkey disclosed it hoo’s board kicks off a had warned Belgium last sum- scramble for the support mer that it suspected Ibrahim of other shareholders. B1 el-Bakraoui, one of two suicide bombers at the Brussels Air- The Dallas Fed’s chief is port, had ties to Islamic State— part of a widening consensus

L’OSSERVATORE ROMANO/PRESS POOL/ASSOCIATED PRESS to no avail. taking root inside the nation’s GESTURE OF BROTHERHOOD: Muslim, Christian and Hindu refugees had their feet washed by the pope at a shelter near Rome on Thursday. A12 Mr. Bakraoui and his youn- central bank on rates. C1 ger brother, Khalid, both from New orders for durable Brussels, were known to West- goods declined in February ern intelligence and were on at as weak growth weighed least one U.S. watch list, said a on business spending. A2 U.S. official. It couldn’t be immediately learned how they A judge gave VW another Bad Loans Hit the Oil Patch were classified on the list. month to come up with a fix While the U.S. often shares for its diesel cars that vio- Bad loans in the U.S. oil to extend above 50% this year cash, according to more than a Since the start of last year, names on its various watch late U.S. emissions rules. B3 patch are on pace to soon out- at several major banks, includ- dozen bankers, lawyers and 51 North American oil-and-gas lists, it isn’t known whether Square hopes to speed its number good ones, an indica- ing Wells Fargo & Co. and others familiar with the plans. producers have filed for bank- they did in this case. The Bel- path to profits by offering tion of the pressure on energy Comerica Inc., according to The pullback is curtailing ruptcy, cases totaling $17.4 bil- gian government has so many loans through a partner bankers and others in the in- the flow of money to compa- lion in cumulative debt, ac- people to surveil, it is difficult bank as an add-on service to By Bradley Olson, dustry. nies struggling to survive a cording to law firm Haynes for them to prioritize who its core payments business. C1 Emily Glazer In response, several major prolonged stretch of low and Boone LLP. That trails the might be the most urgent. banks are reducing their expo- prices, likely quickening the number from September 2008 Separately, the Belgian fed- The Dow edged up 13.14 and Matt Jarzemsky sure to the energy sector path to bankruptcy for some to December 2009 during the Please see TERROR page A6 points to 17515.73, but U.S. companies and their lenders by attempting to sell off sour- firms. About 175 companies global financial crisis, when stocks snapped five con- from the crash in prices. ing loans, declining to renew are at high risk of not being Please see LOANS page A2 Attacks expose slow progress secutive weeks of gains. C4 The number of energy loans them or clamping down on the able to meet financial stipula- on security...... A6 Playboy is exploring a labeled as “classified,” or in ability of oil and gas compa- tions in their loan agreements, Natural-gas industry faces Iraq presses fight against sale. The publisher could danger of default, is on course nies to tap credit lines for according to Deloitte LLP. glut, painful spring...... C1 militants in North...... A7 fetch over $500 million. B1 World-Wide Battle for Yahoo DESPITE FEDERAL HEALTH LAW, $125 a share Yahoo’s daily Belgian police rounded share price up six more people they said were connected to 100 ILLEGAL IMMIGRANTS GET CARE this week’s terror attacks, as the government acknowledged high-level counterter- 75 U.S. policy restricts coverage, but many counties choose to treat patients without legal status rorism failings. A1, A6, A7 Thursday The Justice Department $34.86 BY LOUISE RADNOFSKY 20 of them have programs that pay for American hospitals have long been re- unsealed charges against 50 the low-income uninsured to have doctor quired by law to screen and stabilize any seven alleged Iranian hackers, WHEATON, Md.—When federal law- visits, shots, prescription drugs, lab tests patient, regardless of his or her ability to saying they attacked the U.S. makers wrote the act overhauling the na- and surgeries at local providers. The ser- pay, which means taxpayers already are financial system and serv- 25 tion’s health-care system six years ago, vices usually are inexpensive or free to committed to paying for care in its most ers for a New York dam. A3 they ruled out any possibility of extend- participants, who must prove they live in expensive setting. The U.S. imposed new 0 ing health insurance to illegal immi- the county but are told their immigration County politicians figure it is cheaper, sanctions against Iranian grants. status doesn’t matter. safer and easier to give basic health ser- defense firms and the Rev- 1996 2000 2010 Local officials where many of those Whether such programs are appropri- vices to immigrants who can’t get insur- olutionary Guard over bal- Source: FactSet immigrants live are treating them any- ate is a matter of debate. Many voters ance than to treat them only in the listic-missile launches. A7 THE WALL STREET JOURNAL. way. believe it is unfair to use tax dollars to county’s emergency rooms. A U.N. court sentenced PROXY FIGHT: Starboard’s bid A Wall Street Journal survey of the 25 help immigrants when American citizens “If federal programs exclude people former Bosnian Serb leader to oust Yahoo directors set U.S. counties with the largest unauthor- struggle, and that doing so encourages il- who live here and get sick here, then Karadzic to prison for geno- off a scramble for the backing ized immigrant populations found that legal immigration. At the same time, Please see HEALTH page A8 cide and other crimes. A12 of shareholders of the troubled Internet pioneer. B1 The personal feud between Republican presi- Schools Doing ‘Starlight Express’ Inside dential candidates Cruz and Trump intensified. A4 Are Often Skating on the Edge Iraq’s army launched iii an offensive to retake the ATwiston northern province of Nine- Few teens know how to roll these days, veh from Islamic State. A7 Watchlists: The U.S. and Russia making the 1980s musical tough to pull off praised the progress of the Syria cease-fire and promised Financial BY ADAM THOMPSON ined by a little boy. The lead to build on the success. A7 characters are competing Obama pledged support Criminals BURLINGTON, Vt.—Any stu- trains. Other actors form the for victims of Argentina’s BY JEAN EAGLESHAM dent drama department can train cars behind them as they military dictatorship by pull off another production of zoom around stage and down declassifying documents States have taken the idea “The Sound of Music” or ramps through the audience related to that era. A12 of the sex-offender registry “Guys and Dolls.” on wheels. and applied it to everything Only the truly The students of Died: Johan Cruyff,68, from kidnapping to animal brave dare mount Burlington’s Hunt Dutch soccer great. D8 abuse. Utah is expanding it “Starlight Express.” Middle School are …Garry Shandling,66, into new territory: financial The sets are elab- among the few tak- comedian and actor. crime. orate, the costumes ing “Starlight” local.

An early version of the complicated. And They are mounting HARRY HOW/GETTY IMAGES CONTENTS In the Markets...... C4 White Collar Crime Offender then there’s the fact one of two coming Oregon defeated Duke 82-68 Thursday night in the third round of Arts & Ent...... D2,4-7 Opinion...... A9-11 Business News...... B2-4,6 Sports...... D8 Registry, which has been on- that Andrew Lloyd amateur U.S. pro- the NCAA men’s tournament. See WSJ.com for the latest coverage. Crossword...... B6 Technology...... B5 line since February, includes Webber’s extrava- ductions listed by Election 2016.... A4-5 U.S. News...... A2-3 more than 100 people con- ganza requires most Rodgers and Ham- Global Finance...... C3 Weather...... B6 victed of tax, credit-card or in- actors to perform merstein, the show’s SPORTS | D8 OPINION | A9 Heard on Street.... C8 World News. A6-7,12 surance fraud; thefts from em- on roller skates, ob- licensing company. ployers or friends; and bilking jects as foreign to Will Belluche Any child who Tar Heels Rock A Solution to the > investors. today’s teens as pay wanted a part in the They include 41-year-old phones. production, which opens April Basketball Logic High Court Fight Kenneth Ray Wagner. “Eye “Starlight Express,” which 7, go t o n e. Color: Blue. Hair Color: made its debut on London’s Many of the 43 in the cast North Carolina is a title threat, Michael W. McConnell says Blonde…Targets: Insurance West End to chilly reviews but slipped on skates or Roller- but it resists the game’s the GOP should approve s Copyright 2016 Dow Jones & Company. All Rights Reserved company.” The registry dis- big crowds in 1984, tells the blades for the first time just modern trends by passing up Garland if it loses the Please see UTAH page A2 story of a train race as imag- Please see SKATE page A8 three-pointers. election in 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 A2 | Friday, March 25, 2016 **** THE WALL STREET JOURNAL. U.S. NEWS Durable-Goods Orders Decline 2.8%

Drop in February on company spending. more expensive for foreign buy- Spending on defense aircraft prior month, but the shifts rein- crease was revised New orders for durable ers. Those factors, compounded and parts led the decline, falling forced lethargic trends that have lower Thursday to a 4.2% gain suggests weak global goods—products designed to by market gyrations in the early 29.2% on the month. Civilian air- emerged in recent months,” said from an earlier estimate of a growth is weighing on last at least three years, like weeks of 2016, slimmed order craft orders fell 27.1%. Michael Moran, an economist at 4.7% rise. dishwashers and aircraft—fell a books as businesses shied from Categories reflecting busi- Daiwa Capital Markets America. Some economists lowered corporate spending seasonally adjusted 2.8% in Feb- investment and whittled down ness investment were broadly February’s data marked a de- their estimates for first-quarter ruary from a month earlier, the inventories. weak, suggesting U.S. companies cline in durable-goods orders for gross domestic product on the BY HARRIET TORRY Commerce Department Durable-goods statistics are remain cautious about spending. three of the past four months. basis of Thursday’s report. Fore- said Thursday. volatile and subject to large re- New orders for nondefense capi- Last month’s broad-based casting firm Macroeconomic Ad- WASHINGTON—A key mea- The factory sector has been visions. Analysts said swings in tal goods excluding aircraft, con- drop in new orders for durable visers lowered its projection to sure of U.S. manufacturing buffeted over the past year by aircraft orders were partly to sidered a proxy for business goods followed a spike in Janu- 1.5% from an earlier estimate of health tipped back into de- reduced demand for drilling and blame for February’s decline, spending on equipment, fell 1.8% ary that had appeared to offer a 1.9% growth. The government is cline last month, evidence that mining equipment following low after the nation’s largest aircraft in February following a 3.1% rise glimmer of hope for the manu- set to release its latest revision headwinds from weak global oil prices, tepid overseas de- maker, Boeing Co., received just in January. facturing sector, which gener- of fourth-quarter GDP on Friday. growth, low oil prices and fi- mand and a strong dollar that two aircraft orders in February “Many of the declines repre- ates about one-eighth of U.S. The first read of first-quarter nancial volatility are weighing has made U.S.-produced goods compared with 68 in January. sented offsets to increases in the economic output. January’s in- growth will come in late April.

cial-crimes registry. In all, the year to create the registry to UTAH number of Americans on such stem what they called a grow- lists soon will approach a mil- ing tide of white-collar crime lion, if it isn’t there already, in the state, particularly by ContinuedfromPageOne said J.J. Prescott, a law profes- con artists preying on its plays Mr. Wagner’s mug shot sor at the University of Michi- close-knit religious communi- and explains that he was con- gan. He warned of possible un- ties. victed in 2008 of fraud for dis- intended consequences from A convict needs to fill out a mantling his motorcycle, hid- applying a public alert de- form to register, arrange to ing the parts in a storage signed for sex offenses to have a photo taken and update locker and claiming to his in- other crimes, such as the risk his address and phone number surance company that it had of drug-offender registries be- if they change. been stolen. ing used by addicts to find All but one entry in the The list makes Utah the suppliers. early version of the registry most aggressive jurisdiction in “Do we want to be a nation includes a photo, typically a the country when it comes to of registries?” asked Douglas mug shot, while some also list publicly shaming financial Berman, a law professor at aliases such as “Missy Moni- criminals. No other state oper- Ohio State University. ker” or “Connie.” The site has ates such a list. The Securities Utah’s white-collar registry some glitches. It included one and Exchange Commission of- will include anyone convicted man who died of cancer last ten shields which offenders ha- of second-degree frauds or year—he was removed after ven’t paid financial penalties. other financial felonies since the Journal sent officials a link The agency last month re- January 2006. A total of about to his obituary—and another fused a public-records request 230 people are expected to be where the wrong offense was by The Wall Street Journal for on the registry when it is for- initially shown. sanctions paid by specific indi- mally launched in a few Mr. Reyes said the state still

viduals, saying that providing RICK BOWMER/ASSOCIATED PRESS months, officials said. is vetting the registry, includ- such information would be “a Utah Attorney General Sean Reyes says the state is still vetting its registry for financial criminals. The state generally will ing asking offenders to check clearly unwarranted invasion keep people registered for 10 the accuracy of their entries. of personal privacy.” vestors by offering easy access already have served their time. In Indiana, a public website years after a first offense. A “We want to be fair,” he said. The Financial Industry Reg- to information about con art- Registries have proliferated lets visitors use Google Maps second offense adds another Some legal experts say ulatory Authority does require ists. rapidly in the U.S., experts say. to find the location of homes decade, and people with three Utah’s approach could be an disclosure of events like some It also could create leverage While some lists restrict ac- that have been used as meth convictions never get off. improvement on federal efforts criminal convictions, regula- to get felons to make their vic- cess to law-enforcement agen- laboratories. Tennessee re- Mr. Wagner’s lawyer, Tara to encourage restitution. tory actions and customer tims whole. Convicts who com- cies or fire officials, others can quires registration for animal Haynes, said he has paid a "I don’t know if it will work, complaints. But it applies only ply with court orders on time be viewed online by anyone, abuse—something nine other considerable price for his but whatever else we’re trying to securities professionals, and and pay restitution in full according to the National Con- state legislatures are debating. crime. He appeared on the list isn’t working so well,” said Mr. the disclosures are intermin- won’t appear on the list. ference of State Legislatures. Florida law requires registra- after serving 90 days in county Berman, the Ohio State law gled in a database that in- “That’s the carrot,” Utah At- In addition to the 50 states tion by anyone convicted of a jail and being ordered to pay professor. “Given how low the cludes more routine facts like torney General Sean Reyes that publicly track sex offend- felony of any kind for up to more than $16,000 in restitu- recovery rate is for court-im- work history. said. ers, five states including Cali- five years after completing the tion. “He is not a white-collar posed restitution, we don’t Utah lawmakers say their The new policy plunges the fornia require registration for sentence. criminal,” Ms. Haynes said. seem truly committed to hav- list, which is being adminis- state into a broader debate arson. Minnesota, Illinois and Utah itself maintains a sex- “He’s a blue-collar construc- ing that form of punishment tered by the state’s attorney about using name-and-shame six others maintain lists of offender and kidnap-offender tion worker.” go beyond symbolism in some general, will help protect in- tactics to punish convicts who methamphetamine producers. list as well as its new finan- Utah lawmakers voted last cases.”

year’s highs amid a global glut greater than operating income, LOANS of supply. before depreciation and amor- Energy Reckoning Since late last year, regula- tization expense. Oil and gas producers’ debt has risen in recent years, and so has banks’ exposure to energy loans. tors have been leaning on That high a ratio was rare ContinuedfromPageOne banks to be tougher in their when crude prices began to Debt ratio for about 30 major Exposure of selected banks to oil and gas debt there were 62 filings of oil and labeling of bad loans. That has plunge in 2014 but will be the global oil producers Percentage gas producers, but it is ex- also been a factor in driving average across the sector by Energy loans Percentage of impact on pected to grow. up the rate of troubled debt, the end of the year, estimates 50% Debt as a percentage Bank 4Q 2015 Total loans 2016 EPS of market value “This has the makings of a bankers said. energy investment bank Tu- Bank of America $21.3 billion 2.0% 5.6% gigantic funding crisis” for en- Earlier this month, the Of- dor, Pickering, Holt & Co. 40 ergy companies, said William fice of the Comptroller of the The updated manual follows Citigroup 20.5 3.0% 3.8% Snyder, head of Deloitte’s U.S. Currency published an up- a series of calls in recent 30 17.0 restructuring unit. If oil dated manual for energy lend- weeks between the OCC and Wells Fargo 2.0% 1.0% prices, which closed at $39.46 ing that establishes stricter banks around energy lending J.P. Morgan Chase 14.0 2.0% 0.0% a barrel Thursday, remain at guidelines for loans guidelines, people familiar 20 around $40 a barrel this year, tied to future oil-and-gas pro- with the calls said. Comerica 3.7 8.0% 22.5% “that’s fairly catastrophic.” duction. One guideline banks Many of the souring energy 10 Regions Financial 3.2 4.0% 5.7% While U.S. oil prices have use to classify loans as “sub- loans are revolving-credit fa- rebounded from their Febru- standard and worse” is if the cilities, backed by future bar- 0 U.S. Bancorp 3.2 1.0% 1.2% ary low of $26.21, they remain creditor has debt gener- rels of oil and gas, which are down about 36% from last ally more than four times typically used by companies ’07’06’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 BOK Financial 3.1 19.0% 42.8% for short-term needs. Usually, Sources: S&P Global Market Intelligence; Evercore ISI (selected banks) THE WALL STREET JOURNAL. around a half dozen banks share the risk on the “revolv- Global oil-and-gas sector banks have already set aside That credit, which has been ers,” reducing exposure. But as debt totaled $3 trillion hundreds of millions of dollars critical for capital flexibility in oil prices remain low there is in 2014, three times what it for potential losses, their lend- the downturn, may be cut 20% less profitable work the en- was at the end of 2006, ac- ing to the sector is a smaller to 30%, analysts said. ergy firms can do, which cording to the most recent part of their overall business. James J. Volker, chief exec- makes their loans riskier for figures from the Bank for In- About 1.5% to 3% of the loan utive of Whiting Petroleum the banks who must hold more ternational Settlements, a cen- portfolios of Bank of America Corp., one of the biggest pro- capital against them. tral-banking group based in Corp., Citigroup Inc., J.P. Mor- ducers in North Dakota’s Bak- Although some bank loans Switzerland. The oil-price gan Chase & Co. and Wells ken formation, said at a Den- may be replaced by debt from plunge has worsened the fi- Fargo were outstanding to ver conference this month that hedge funds or private equity, nancial picture for energy bor- the oil-and-gas sector in Janu- he expected the company’s many of those who step in to rowers and lenders around the ary, according to Goldman credit line to be reduced by $1 fill the void left by banks will world because it directly af- Sachs Group Inc. and Evercore billion, or more than a third. do so seeking more control fects the value of oil reserves ISI. Still, he said he was opti- over the companies with an and other assets backing some “I’m not worried about it mistic Whiting would weather eye toward taking over if the of the debt. bringing the industry down,” the storm, adding that the companies aren’t able to turn The situation is particularly said Thomas Hoenig, vice company was “well within” things around. acute in the U.S., where many chairman of the Federal De- the rules established by its That’s different from banks, small and midsize companies posit Insurance Corp., in an in- lenders. which were key enablers of borrowed heavily to expand terview. “We may have a bank “We have over 6,000 drill- drillers in recent years, and during the shale boom and are failure but it should be one- ing locations in the Williston have worked to keep compa- now weighed down with debt off.” basin...so basically a large nies afloat and avoid foreclo- as low oil and gas prices have However, the lending treasure trove, if you will, of sure. made their assets unprofitable shakeout could be significant locations to drill,” Mr. Volker The prices being discussed to produce. for U.S. oil-and-gas producers, said. include a discount to the loan Regional banks that lent to which face a biannual review —Erin Ailworth, value in the range of 65 to 90 energy companies have the by banks of their reserves that Rachel Louise Ensign cents on the dollar, potential most concentrated expo- is widely expected to curtail and Selina Williams buyers said. sure. While the biggest U.S. their revolving credit lines. contributed to this article.

THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) CORRECTIONS AMPLIFICATIONS (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Seebataillon GMT Published daily except Sundays and general legal holidays. A Heard on the Street arti- ger discussing the topic with Periodicals postage paid at New York, N.Y., and other mailing offices. cle March 23 about U.S. banks the bank. For more information please contact: POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA cited a report by German daily 01020. Handelsblatt that German tax Ryanair closed its Copen- Mühle-Glashütte USA • 727-896-8453 • www.muehle-glashuette.de 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 authorities could claim €706 hagen base in response to a Old Northeast Jewelers – St. Petersburg &Tampa, FL Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept million ($790 million) of back threatened blockade of its ExquisiteTimepieces – Naples, FL an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of taxes from Citigroup.On planes by a competitor’s Joseph Edwards – NewYork, NY the advertiser’s order. Danson Jewelers – Hasbrouck Heights, NJ Letters to the Editor: Fax: 212-416-2891; email: [email protected] March 24, Handelsblatt ran a unions. A March 14 Business Martin Pulli Fine Jewelry & Watches – Philadelphia, PA correction saying German tax News article about the airline Marvin Scott & Co. –Yardley, PA NEED ASSISTANCE WITH YOUR SUBSCRIPTION? authorities aren’t demanding a incorrectly attributed the LittleTreasury Jewelers – Gambrills, MD CONTACT CUSTOMER SUPPORT. €706 million back-tax claim move to a disagreement with Timeless Luxury Watches – Frisco,TX By web: customercenter.wsj.com Jack Ryan Fine Jewelry – Austin,TX from Citigroup and are no lon- Copenhagen’s mayor. Trident Jewels andTime By email: [email protected] – St.Thomas, USVI By phone: 1-800-JOURNAL (1-800-568-7625) Ray’s Jewelry – Philipsburg, St. Maarten Or by live chat at wsj.com/livechat Readers can alert The Wall Street Journal to any errors in news articles by emailing [email protected] or by calling 888-410-2667. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. **** Friday, March 25, 2016 | A3 U.S. NEWS ©T&CO. 2016 Iranians Charged In U.S. Hacking

BY CHRISTOPHER M. MATTHEWS AND KATE O’KEEFFE

The U.S. Justice Department unsealed charges against seven alleged Iranian hackers Thurs- day, saying they attacked the U.S. financial system and servers for a dam in New York in the first public indictment against hackers tied to the Ira- nian government. U.S. officials have long accused Iran of sponsoring hackers, but Thursday’s charges are

the most explicit accusation to GERRY BROOME/ASSOCIATED PRESS ® date. The indictment didn’t A law approved by North Carolina legislators this week makes the state the first in the nation to RETURN TO TIFFANY specifically allege the Iranian require people to use public bathrooms corresponding to their gender at birth. A CLASSIC REINVENTED government directed the attacks, but said that one of the CIRCLE DUO PENDANTS hackers received credit toward ‘Bathroom Battles’ Erupt completion of his mandatory military service for the attacks and that another had trained Iranian intelligence officials, Over Transgender Issue among other things. The unsealing of the charges BY VALERIE BAUERLEIN comes after months of consul- lash to changes playing out in gument we hear from the far 800 843 3269 | TIFFANY.COM tations among the Justice De- federal court, particularly the left is akin to fear-mongering.” partment, the State Department RALEIGH, N. C.—A broad recent legalization of gay mar- He said there is federal-court and a handful of intelligence new law here requires trans- riage, said Maxine Eichner, a precedent saying Title IX agencies, said a person familiar gender people to use the pub- professor at the University of funds wouldn’t be in jeopardy. with the matter. lic bathroom corresponding to North Carolina School of Law. North Carolina “is on the Some officials privately ex- the gender on their birth cer- But, she added, “The story wrong side of history,” said pressed concerns that unseal- tificate, a rebuke of a move by with LGBT rights has been sur- Charlotte Mayor Jennifer Rob- ing charges against individuals the state’s largest city and the prising—not in that there’s erts, a Democrat. She said the the U.S. has no hopes of ar- latest skirmish in the “bath- backlash given how quickly city has long allowed transgen- resting would only serve to ag- room battles” popping up in views on this issue have der people to use any bath- itate countries with which the statehouses and city halls. changed, but that there hasn’t room at city facilities, includ- U.S. has fraught relations, in- North Carolina on Wednes- been more backlash.” ing the convention center cluding China and Iran, the day became the first state to The Republican-led North during the 2012 Democratic person familiar with the mat- enact legislation restricting ac- Carolina General Assembly National Convention. ter said. cess to sex-segregated facili- passed the bathroom bill in an Republican leaders, includ- “The world is small and our ties on the basis of sex as- emergency session Wednes- ing Gov. McCrory, a former memory is long,” Federal Bu- signed at birth, according to day night. The move came Charlotte mayor, said they reau of Investigation Director the National Conference of in response to an ordinance were trying to protect children James Comey said during a State Legislatures. At least 13 passed last month by the pre- from confusing and potentially Thursday news conference. other states are considering dominantly Democratic Char- predatory situations. Char- “We want them looking over similar bills, according to lotte’s ordinance “defied com- their shoulders.” the nonpartisan group. The move is part of mon sense,” and would have New York federal prosecu- Several big cities have allowed men to use the tors alleged in the indictment moved in the opposite direc- a flurry of actions women’s locker room, Mr. Mc- that the defendants worked for tion. Earlier this month, New by states and cities Crory said in a tweet. two private computer-security York City Mayor Bill de Blasio The North Carolina law companies that performed signed an executive order re- over LGBT concerns. prompted some LGBT advo- work for the Iranian govern- quiring city agencies to allow cates to call for boycotts of the ment, including for the Islamic people to use the city’s 2,200 state, including actor George Revolutionary Guard Corps, public restrooms based on lotte City Council. State law- Takei in a post to his 9.6 mil- Iran’s elite military force. their self-declared gender makers debated, approved and lion Facebook followers. According to prosecutors, identity. Philadelphia recently had the signature of Republi- A similar bill stalled in Ten- one of the suspects, Hamid required private businesses to can Gov. Pat McCrory within 12 nessee this week. Earlier this Firoozi, in 2013 accessed the use gender-neutral signs on hours. month, South Dakota Gov. Den- server that controlled a dam in single-occupancy bathrooms. Civil-rights advocates say nis Daugaard vetoed a bill des- Rye, N.Y. The attack didn’t gain But Houston voters over- the fast track left no room for ignating which bathrooms operational control of the dam, whelmingly rejected a ballot public debate and resulted in a transgender students can use according to the indictment, measure last year to extend mishmash that repeals local in public schools, after being but caused thousands of dol- nondiscrimination protections protections against discrimina- lobbied in person by transgen- lars in damages to the com- to gay and transgender people. tion based on race, national der students and on social me- puter system. Ten states are considering origin, sex and sexual orienta- dia by Caitlyn Jenner, the for- Adhaesio In other attacks starting in “religious-freedom” laws, action. These advocates say that mer Bruce Jenner. One hand – two times 2011, hackers working for Ira- cording to NCSL, which could means it puts at risk billions of Some 300,000 transgender nian security companies ITSec allow businesses to refuse to dollars in federal Title IX fund- people would be affected by Team and Mersad began work with gay couples on reli- ing, which goes to an array of state legislation under consid- www.meistersinger.net launching so-called denial-of- gious grounds. North Carolina public programs, including ed- eration nationally, according to service attacks on the U.S. fi- approved a law last year allow- ucation, and prohibits discrim- the Williams Institute, a think nancial system, according to ing magistrates to opt out of ination. tank that studies sexual orien- prosecutors. The attacks af- performing same-sex mar- Ricky Diaz, a spokesman for tation and gender-identity fected around 46 financial in- riages. Gov. McCrory’s re-election public policy at the University stitutions over roughly 176 The flurry of proposals on campaign and longtime aide to of California, Los Angeles, days and prevented customers LGBT issues could be a back- the governor, said that “the ar- School of Law. from accessing their accounts online. The attacks were coor- dinated between the two companies and cost the victim Tuberculosis banks tens of millions of dollars, prosecutors said. In a denial-of-service attack, Cases Climb hackers overwhelm targeted servers with a flood of elec- For the First tronic communications from thousands of computers, inca- pacitating the systems. Time in Years Prosecutors said the sus- BY BETSY MCKAY pected ITSec Team hackers— Ahmad Fathi, Mr. Firoozi and Tuberculosis is no longer Amin Shokohi—launched de- on the decline in the U.S., after nial-of-service attacks target- nearly a quarter-century of ing Bank of America, Nasdaq, steady reductions in cases of the New York Stock Exchange, the deadly airborne disease, Capital One Bank, ING Bank, according to federal data re- PNC Bank and others. Two of leased Thursday. the men also targeted AT&T. The number of TB cases The suspected Mersad hack- rose last year for the first ers—Sadegh Ahmadzadegan, time in 23 years, and the rate Omid Ghaffarinia, Sina Keissar of cases has leveled off at and Nader Saedi—also three per 100,000 people since launched denial-of-service at- 2013, the Centers for Disease tacks on the financial system, Control and Prevention said in including J.P. Morgan Chase, a report. Citibank, Wells Fargo and oth- While the increase in cases ers. was slight—9,563 cases in The defendants weren’t 2015, compared with 9,406 in reachable for comment. U.S. 2014—it suggests that prog- officials said the hackers are ress toward a national goal of believed to be in Iran, with reducing tuberculosis to one which the U.S. doesn’t have an case or fewer per million peo- extradition treaty. If the defen- ple is off course, TB officials dants left Iran, U.S. law en- and experts conceded. forcement could try to arrest It also comes at a time when them, the officials said. fighting tuberculosis globally The charges represent an has become more complicated, evolving U.S. policy on unseal- with heavily drug-resistant ing charges against state- forms of the disease spreading. backed hackers, a practice fre- Although most cases of TB quently called “naming and are curable, the disease now RALEIGH ATLANTA DENVER PALM BEACH NEW YORK shaming,” because such defen- kills more people world-wide ST, ANDREWS SOUTHAMPTON dants are usually beyond the than HIV/AIDS, according to reach of law enforcement. the World Health Organiza- petermillar.com —Aruna Viswanatha tion, which reported 1.5 mil- contributed to this article. lion TB deaths in 2014. 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 | Friday, March 25, 2016 PWLC101112HTGKBFAM123456789OIXX **** THE WALL STREET JOURNAL.

Candidates’ Spat Over Spouses Boils Over

Trump and Cruz trade insults over campaign images featuring their wives; ‘sniveling coward’ BY NATALIE ANDREWS said they had nothing to do AND BYRON TAU with it, while Mrs. Cruz said, “Most of the things that WASHINGTON—The per- Donald Trump says have no sonal feud between Republi- basis in reality.” can presidential candidates “Donald, real men don’t Ted Cruz and Donald Trump attack women. Your wife is intensified Thursday with lovely, and Heidi is the love Mr. Cruz calling the New of my life," Mr. Cruz said on York businessman a “snivel- Twitter this week. ing coward” and warning The attacks between the him to leave family attacks two Republicans have drawn out of the presidential race. criticism from Democrats. The bickering between Chelsea Clinton, who is cam- the two leading Republicans, paigning in Wisconsin for locked in a battle for dele- her mother, Democratic gates, was kicked off by an front-runner Hillary Clinton, ad mocking Mr. Trump’s wife addressed the back-and- and blew up into a three-day forth. “I think that the level back-and-forth between the of vitriol goes beyond any- two men over the propriety thing that we certainly have of involving family members seen in contemporary times in the presidential campaign. in this election,” she said, “It’s not easy to tick me according to NBC News. off,” Mr. Cruz told report- Mainstream Republicans ers Thursday at a Wisconsin leaders have become more campaign stop. “I don’t get vocal in their backing of Mr. angry often. But you mess Cruz in recent weeks, as with my wife, you mess with party officials look for ways my kids, that will do it every to stop Mr. Trump. time. Donald, you’re a snivel- Asked Thursday if he would

ing coward.” He added that DAVID GOLDMAN/ASSOCIATED PRESS support Mr. Trump should Mr. Trump should leave his Republican presidential candidate Donald Trump introduces his wife, Melania, during a campaign rally in New Hampshire in February. the businessman become the wife “the hell alone.” GOP nominee, Mr. Cruz side- In advance of Utah’s GOP ter to express his displeasure images are worth a thousand next major contest is New and its donors to stand stepped the question and in- primary this past Tuesday, a over the ad, blaming “Lyin’ words” accompanied the York—Mr. Trump’s home down,” said Mr. Miller about stead predicted victory. “I’m group unaffiliated with the Ted” for the spot and threat- photo. The ad was composed state. There are no more ad- the group that sparked the going to beat him,” he said. Cruz campaign featured a ening to “spill the beans” on by a supporter of the real-es- ditional Republican debates fight. But it isn’t clear that “Donald Trump will not be racy photo from 2000 of Mr. Heidi Cruz, the Texas sena- tate developer. scheduled. would even be possible—su- the nominee.” Trump’s wife, Melania, in an tor’s wife, in retaliation. The two front-runners are Trump campaign senior per PACs are required by law In an average of national ad accompanied by the text: Mr. Trump continued his entering a lull in a long GOP adviser Stephen Miller said to be run independently of polls, Mr. Trump is ahead of “Meet Melania Trump, your attack against Mrs. Cruz, campaign season that ap- on CNN Thursday the unflat- candidates and campaigns. Mr. Cruz by 13 points, ac- next first lady. Or you could sharing on Twitter an unflat- pears to be turning increas- tering photo of Mr. Cruz’s In media interviews, Mr. cording to Real Clear Poli- vote for Ted Cruz on Tues- tering photo of her next to ingly personal. Wisconsin wife “speaks for itself.” and Mrs. Cruz distanced tics. In the delegate count, day.” his own wife. The text “No voters head to the polls “The Cruz campaign themselves from the ad that Mr. Cruz trails by nearly 300 Mr. Trump took to Twit- need to spill the beans, the on April 5. After that, the needs to tell the super PAC sparked the controversy and delegates. Cruz Gains Ground in Louisiana After Primary Loss

BY REID J. EPSTEIN gate threshold to claim the Mr. Trump, according to GOP Cruz supporter who has never GOPnominationonthecon- officials in the state. before been involved in a ma- Donald Trump beat Sen. vention’s first ballot, commit- The second step in the pro- jor political campaign. Ted Cruz earlier this month in tees dominated by Cruz sup- cess is for those delegates to Ms. Katz, who said she has Louisiana’s Republican presi- porters could work to block decide who will represent Lou- attended every GOP conven- dential primary by 3.6 percent- him from winning enough del- isiana on the three important tion since 1984, said the Cruz age points, but the Texan may egates to claim the nomination convention committees— forces out-organized Mr. wind up with as many as 10 on any subsequent ballots. rules, credentials and the Trump’s campaign, whom she more delegates from the state Kay Kellogg Katz, a Trump party platform. To make those said showed no concern about than the businessman. supporter who sought unsuc- choices, most of Louisiana’s helping their supporters win Mr. Cruz’s supporters also cessfully to win a position on a delegates gathered at a March the committee slots. seized five of Louisiana’s six key panel at the convention, 12 state convention to elect Ms. Fralick, a veterinarian slots on the three powerful summarized the Trump cam- two members to each panel. from the Baton Rouge suburb committees that will write the paign’s predicament this way: No Trump backers won any of Central, said she was asked rules and platform at the Re- “I do not know Mr. Trump, I do of those slots. Five of the six by a Cruz official if she could publican National Convention not know his staff people. committee members chosen serve on the panel, which en- and mediate disputes over del- Quite frankly, we don’t have back Mr. Cruz, and the sixth is tails arriving in Cleveland days egates’ eligibility this summer much of a campaign in Louisi- uncommitted. Louisiana is the before the convention begins. in Cleveland. ana. All we have is voters.” first state to name delegates to “They were looking for some- The little-noticed inside ma- In other states, Trump sup- serve on the three committees. one who could come up a week neuvering that led to this out- porters have missed out on the Those panels would become early,” she said. “I might have come in Louisiana is another early process of becoming con- critical in a contested conven- been a default choice.” dramatic illustration of the in- vention delegates because they tion, which would take place if Ed Brookover, the Trump side game that could have an are inexperienced in the party no candidate wins a majority official leading the campaign’s outsize influence on the bitter processes. But in Louisiana, of delegates on the first ballot. delegate team, said Thurs- race for the GOP nomination. A Mr. Trump won broad support The rules panel will determine day that he wasn’t aware that

similar process played out among elected officials despite TANNEN MAURY/EUROPEAN PRESSPHOTOwhich AGENCY candidates are eligible the Trump campaign had been three weeks ago in Coweta a bare-bones campaign infra- Republican presidential candidate Ted Cruz, joined by his wife, to be nominated for president, shut out of Louisiana’s com- County, Ga. structure. Still, he has lagged Heidi, speaks at a campaign stop in Dane, Wis., on Thursday. the platform panel will write mittee slots. He expressed op- While Mr. Trump leads in behind on delegate selection. the party’s agenda, and the timism that “other spots winning primary and caucus With 20 states left to vote, nomination. The Texan must primary on March 5. But the credentials panel will mediate where this is taking place, we elections, and has won more Mr. Trump has won 739 dele- win 85% of the remaining dele- five delegates awarded to Flor- disputes about which dele- now have programs and plans delegates, the Cruz campaign gates out of 1,237 required to gates to win outright, a highly ida Sen. Marco Rubio are now gates can be seated. Such in place to make sure that Mr. is proving superior at the ar- clinch the nomination. He has unlikely scenario with many free agents because he ended fights are already taking place Trump’s supporters are getting cane game of picking the peo- to win about 55% of the re- states awarding delegates pro- his campaign, and Louisiana in the U.S. Virgin Islands and to county, district and state ple who will be the actual del- maining delegates to avoid a portionally. Republicans expect them to Guam, and may happen as well conventions.” egates to the convention, contested convention. The Trump campaign’s first swing behind Mr. Cruz. elsewhere. Mr. Brookover added that where they will help write the Stacking the convention and problem is in the overall dele- Meanwhile, the state’s five Ms. Katz, a former state leg- “the good news is that when rules and ultimately choose its committees with support- gate count from Louisiana. unbound delegates—who are islator from Monroe, La., we let Mr. Trump’s supporters the nominee. ers is critical for Mr. Cruz, be- Messrs. Trump and Cruz each free to back the candidates of sought a position on the cre- know about these things, they That means that if Mr. cause a contested convention won 18 delegates apiece based their choice—also are more dentials committee. She lost a are enthusiastic and go run- Trump fails to reach the dele- is his only viable path to the on the Louisiana results in the likely to back Mr. Cruz than 22-5 vote to Kim Fralick, a ning to them.” Questions Raised Over Trump’s Plan for China Tariffs BY BOB DAVIS Petri, who said he doesn’t ad- more likely that China would that our economy has been Trade Ripples vise any of the presidential bend to U.S. threats and allow decimated,” she said. In a presidential cam- The impact on U.S. trade of Donald Trump’s threat to impose candidates, and the U.S. merits currency to rise, rather Other candidates are mak- paign where both parties 45% tariffs on Chinese imports would require higher tariffs chandise deficit of $736 bil- than risk losing one of its ing threats as well, though on bristle with tough trade talk, elsewhere as well—an estimated 35% on Mexican goods and 10% lion last year would actually largest markets, especially at a far smaller scale. no threats compete with those from the rest of the world—to offset product diversion to other grow by $67 billion. a time when the Chinese Mrs. Clinton, the former Donald Trump has leveled at countries. The unrest would also likely drive up the value of the dollar. If the U.S. dollar appreci- economy is slowing. secretary of state, said she China as part of a strategy to U.S. imports from ates just 5% during this Should the yuan rise, Mr. would impose sanctions on narrow the trade gap and time—as often happens when Trump wouldn’t need to re- China and other nations for bring jobs back to the U.S. –$260 billion At a constant exchange rate global economic instability sort to stiff tariffs. The Petri “manipulating” their curren- China “If they don’t behave,” the –255 With 5% dollar appreciation grows—U.S. exports would be analysis “tries to turn Trump cies to gain an export edge. Republican business- further battered and the trade into Frankenstein,” said Mr. Her opponent, Vermont Sen. –131 man warned at a debate this Mexico deficit would increase by Morici, a former chief econo- Bernie Sanders, has taken a month, Chinese compa- –127 about $275 billion, he calcu- mist at the International similar position. Ohio Repub- nies under a Trump presi- lates. Trade Commission, who said lican Gov. John Kasich has –36 dency could face tariffs Others “High-tariff policies are he isn’t advising Mr. Trump said he would target China’s of 45% on exports to the U.S. –1 like trade agreements running or any other presidential can- currency practices but hasn’t With Democratic front-run- U.S. exports to in reverse,” said Mr. Petri. didate. said how. None of the three ner Hillary Clinton and oth- –$75 billion They “shift jobs from more ef- Saber-rattling over trade has specified how large a tar- ers also pledging punitive ac- China ficient export-oriented firms isn’t new in presidential cam- iff could be involved. –77 tions, the presidential to less efficient import-com- paigns, particularly on the The remaining Republican campaign is putting the U.S. –111 peting ones, leading to lower Democratic side. But in a candidate, Texas Sen. Ted Mexico on a collision course with –124 productivity and probably striking departure for a Re- Cruz, has voted against pun- China over trade. Economists wages.” The difficult transi- publican, Mr. Trump has made ishing currency practices with warn that a clash could back- –309 tion could cost the U.S. even threats against Chinese and tariffs and has warned that Others fire, reducing U.S. exports and –457 more than the one million Mexican imports a center- Mr. Trump’s China trade poli- putting one million U.S. jobs jobs economists say are at piece of his campaign to bring cies would hurt U.S. consum- at risk. Source: Projections by Peter Petri, Brandeis University THE WALL STREET JOURNAL. risk, he said. manufacturing jobs back to ers and risk a wider trade Brandeis University econo- Mr. Petri generally finds the U.S. war. mist Peter Petri, well re- world. Goods produced in 10% and higher margins on substantial gains from trade Trump spokeswoman Hope Zhu Haiquan, a spokesman garded among trade experts China could shift to other low-wage countries like Mex- deals, a view that isn’t uni- Hicks said the “trade-surren- for the Chinese Embassy in for his projections on the eco- low-wage nations for export ico, he said in a tabulation for form among economists. Uni- der crowd” has long argued Washington, said, “High-qual- nomic impact of trade deals, to the U.S., he figures. To The Wall Street Journal. versity of Maryland economist tougher trade policies would ity and economical imported calculates that Mr. Trump’s block the imports fully would Factor in the retaliation Peter Morici said the Petri hurt the U.S. economy. “But it goods from China have 45% tariff would trigger re- require the U.S. to create against U.S. exports that is analysis is a worst-case sce- is precisely because we have brought substantive benefits verberations around the a global tariff wall of roughly bound to occur, concluded Mr. nario. Mr. Morici said it was refused to enforce trade rules to many American families.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. **** Friday, March 25, 2016 | A5

HHHHH POLITICS COUNTS | Aaron Zitner Clinton Meets With Muslims in L.A. CAMPAIGN Inside the Trump Coalition WIRE HHHHH Donald Trump won his leading position in the Republican primaries with strong support from voters who lack college degrees and REPUBLICAN PRIMARY Some Still See Ryan those who have relatively low incomes. As Possible Nominee Aggregated exit polls show how he performs The dream of House Speaker among those and other voter groups. Paul Ryan as the GOP presidential nominee isn’t dead yet. Mr. Ryan, the 2012 vice presi- Trump’s average vote in Republican contests dential nominee, has repeatedly 39.1% said he doesn’t want to be chosen at the Republican convention Underperforming Overperforming in Cleveland in July if delegates Demographics can’t coalesce around any of the High school or less current candidates. But some se- 46.1% nior House Republicans aren’t Income under $50,000 44.0 ruling it out as a possibility. Some college 42.5 Men voted for “He’s already been vetted, he’s Male 42.0 Trump 8.5 pct. been on a national ticket, mil- pts. more lions of people have already Rural 40.9 than women voted for him,” Rep. Tom Cole of Somewhat conservative 40.0 Oklahoma, a senior House Re- Ages 65+ 39.8 publican, said in an interview for C-SPAN. Ages 45–64 39.6 “Frankly, he does represent Republicans 38.5 Seniors support Trump 9.6 pct. pts. the kind of vision and values Whites 38.4 that as a Republican you would more than Suburban 37.9 younger voters. want to put forward,” he said. JUSTIN SULLIVAN/GETTY IMAGES If no candidate wins 1,237 del- White evangelicals 37.4 AFTER THE ROUNDTABLE: Democratic candidate Hillary Clinton greets attendees at the end of a egates during the GOP primaries, Moderate/liberal 37.3 discussion with Muslim leaders and Mayor Eric Garcetti, left, in Los Angeles on Thursday. caucuses and conventions in the states and territories, the task of Income $50,000–$100,000 36.6 choosing a nominee would fall to Income $100,000 or more 35.4 the convention delegates. Most Independents 35.2 are bound by their state results Ages 30–44 35.1 on the convention’s first ballot, Young Election Watchers but rules for subsequent ballots Very conservative 35.1 allow almost all of them to vote College graduates 34.6 for the candidate of their choice. Grads and post-grads Female 33.5 Mr. Cole said he saw a signifi- are less likely to Turn to YouTube for News cant chance that no GOP candi- Urban 32.7 support Trump than date would lock up the nomina- Ages 17–29 30.2 those with a high BY NATALIE ANDREWS combined—100 times. quickly surrounded by Secret tion before Cleveland, creating a school degree A representative for Google Service. Post-graduates 27.0 potential opening. Voters are watching the said YouTube doesn’t have YouTube said those using it “If you can’t win it outright Most important issue 2016 presidential race play out similar data for the 2012 presi- as a news source are primarily before you get there, I don’t Immigration 56.1% on YouTube. dential race. young: 59% are under age 35, think anybody’s got it in the bag Since April 2015, soon after People are searching for the 15% are 35-44 years old, and Terrorism 38.6 once you arrive. It’ll be very tu- Trump’s tough stance the first person entered the candidates and finding debate 26% are over 44. 36.5 multuous. There will be multiple Economy/jobs on illegal immigration contest, more than 110 million clips, news stories, ads and As well as viewing political ballots unless somebody’s just Government spending 31.3 plays a big part in hours of candidates speaking user-made content. For clips of ads, voters are taking to You- literally inches away” from the who votes for him and of other election-related Republican front-runner Don- Tube to research candidates’ nomination, he said. Illegal immigrants should be: content has been watched on ald Trump alone, ZEFR, a com- positions. The biggest election- Donald Trump is currently Deported to home country 48.2% the video-streaming service, pany that analyzes YouTube related topics sought for are leading the GOP field with 739 YouTube said Thursday. content, tracked 95 million refugees and immigration. delegates, but he may not reach Offered legal status 28.2 YouTube, which is owned by views last week. It said the Searches for refugees on You- the majority threshold before Source: Analysis by Public Opinion Strategies, a Republican polling ﬁrm, of exit polls Google parent Alphabet Inc., majority of those were of dis- Tube are up 224% since April July. Rival Sen. Ted Cruz of from 20 states that voted through March 21. Weights have been applied to the results estimates that to be equal to ruptions at rallies, in particu- 2015. Searches for immigration Texas has 465 delegates, while to account for the varying size of the electorates among states. watching every piece of con- lar a March 12 event in Dayton, are next, up 51% since then, Ohio Gov. John Kasich has 143. THE WALL STREET JOURNAL. tent ever aired on CNN, C- Ohio, where Mr. Trump was followed by gun control, up —Kristina Peterson Span, MSNBC and Fox News startled by a protester and 27%.

WHAT YOU NEED TO READ THIS WEEKEND Unwind with WSJ and feed your curious mind. Read more in tomorrow’s paper andgetexpandedartsandlifecoverageonWSJ.comandourmobileapp.

OFF DUTY REVIEW OFF DUTY REVIEW ATravelSecret,forNow TheChallengeofEaster TheSmaller,theBetter Marriage Across Party Lines TheislandofHolbox,offMexico’s Why has Easter resisted the Lessisneveraneasysell.Still,writes She’sliberal,he’sconservative.Howdo YucatánPeninsula,isacharming, commercialization of Christmas? DanNeil,withtheMercedes-BenzSL theymakeitwork?Bylearningself- under-the-radarescape.Butwithplans Becausethere’snoevadingtheradical series,getthesmallerV6engine.It’sall controlandrecognizingthatthere’s foramegaresortintheworks,itmaynot religious claim that it poses to believers themuscleyouneed. more to happiness than politics. be undiscovered for long. and non-believers alike, writes Father Credit: Dan Neil/The Wall Street Journal Credit: Luci Gutiérrez Credit: Alicia Vera for The Wall Street Journal James Martin. Credit: Alessandro Bianchi/Reuters ©2016DowJones&Company,Inc.Allrightsreserved.6DJ3469 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 | Friday, March 25, 2016 **** THE WALL STREET JOURNAL. WORLD NEWS Attacks Expose Slow Progress on Security

Months after assaults in Paris, EU proposals Probe of Cell to step up intelligence- Raises Fears of sharing remain held up Nuclear Threat

BY VIKTORIA DENDRINOU BRUSSELS—Evidence un- earthed in the investigation BRUSSELS—European into the Islamic State cell be- Union governments pledged hind the Paris and Brussels at- deeper cross-border coopera- tacks has raised fresh concerns tion on counterterrorism after about terrorists’ efforts to ob- the November attacks in Paris tain radioactive material. exposed fatal weaknesses in Belgium’s federal prosecutor security coordination. This said last month that police, week’s deadly strikes in Brus- during a house search linked to sels have underscored that the Paris attacks, had discov- those efforts still have a long ered a videotape showing the way to go. home of a man who worked in Despite improved informa- Belgium’s “nuclear world.” tion sharing over the past Belgium is vulnerable because year, gaps persist in coordina- of its homegrown terror threat tion among the bloc’s govern- and the fact that its seven nu- ments, officials say. After last clear reactors are at least 30 year’s attacks in Paris, the EU years old, said Tom Sauer, a nu- pushed a raft of measures clear terrorism specialist at Bel- aimed at boosting the bloc’s gium’s University of Antwerp. response to terrorism—in- A spokeswoman for Electra- cluded stepping up data shar- bel, a unit of France’s Engie ing, clamping down on arms SA, which operates Belgium’s trafficking and terrorist fi- nuclear plants, said stress nancing, and reinforcing the tests have shown they “are ro-

bloc’s borders. ANGELO CARCONI/EUROPEAN PRESSPHOTO AGENCY; LAURIE DIEFFEMBACQ/AGENCE FRANCE-PRESSE/GETTY IMAGES (BELOW) bust against external influ- But months later, most key Security has been tightened at Rome's Colosseum, above, and other popular European tourist sites since the Brussels attacks. Below, ences, including cybercrime.” measures remain in the deci- a nurse in the Belgian town of Leuven, near Brussels, shows shrapnel from a nail bomb that was taken from attack victims’ bodies. —Matthias Verbergt sion-making pipeline. They include a proposed air-passenger don’t know when is,” he package of measures ensuring much information as it did be- database aimed at helping au- added. data protection—a sensitive fore 2015. It also said that thorities track terror suspects Mr. Avramopoulos’s com- issue for many lawmakers and counterterrorism-related in- trying to return to Europe, ments came hours before EU governments. formation in its information which has been held up in the Turkish President Recep After their meeting, EU jus- system increased 86% from European Parliament because Tayyip Erdogan disclosed that tice and security ministers the end of September to the of data-privacy concerns. one of the Brussels suicide said the passenger-database end of 2015. European officials say insuf- bombers was detained in Tur- regulation needed to be ad- Still, the improvement isn’t ficient intelligence cooperation key last summer on suspicion opted in April and imple- sufficient, officials warn. has allowed prospective ter- of being an Islamic State mented as a matter of ur- “[Tuesday’s] attack proves rorists to roam across the con- fighter, but was set free after gency. that there is not enough shar- tinent, arm themselves and ex- being deported to the Nether- A report by the EU’s coun- ing of intelligence to counter ecute deadly strikes such as lands because Belgian authori- terterrorism coordinator, this kind of terrorism,” said the ones in Paris and Brussels ties couldn’t establish that he which was sent this month to Stefano Stefanini, a senior fel- over the past year. had any terror links. member-states’ delegations in low at the Atlantic Council and “The perpetrators of the re- EU justice and security min- Brussels and seen by The Wall former senior Italian diplomat. cent terrorist acts, they were isters met in Brussels on EU governments have credit-card information of air Street Journal, said progress “It is obvious that the EU all somehow known to the lo- Thursday following the attacks largely backed the series of travelers on flights to, from or had been made in all areas, has to accept some trade-off cal intelligence authorities, but in the Belgian capital, which measures drafted—mainly at within Europe—data that particularly information shar- on privacy for security,” Mr. they didn’t do anything be- claimed more than 30 lives France’s urging—after attacks many European governments ing. Still, it said, “further ur- Stefanini said. cause they were not sharing and injured more than 300 in Paris last year. Called the and security experts consider gent improvements to infor- Officials and analysts also information,” Dimitris Avram- people. Passenger Name Record sys- essential in tracking terrorists mation sharing and border point to governments and EU opoulos, the bloc’s home af- The ministers agreed to in- tem, the proposed air-passen- returning to Europe to mount security are necessary.” institutions dragging their fairs chief said Wednesday, crease “as a matter of ur- ger database would be accessi- fresh attacks. Europol, the EU’s police feet. “By nature, it is difficult speaking after a meeting of gency” the feeding, use and in- ble to various law- The shared-database plan agency, said that its database to get secret services to share top officials at the European teroperability of European and enforcement authorities. hasbeenheldupattheEuro- on Focal Point Travelers—a information,” an EU diplomat Commission. international databases in the Police looking for terrorism pean Parliament, though, as special project aimed at moni- said. “No one wants to share “If now isn’t the time to fields of security, travel and suspects would have access to some political groups say it toring foreign fighters—now their own intelligence, it is step up cooperation, then I migration. names, personal details and must be voted alongside a holds more than five times as also an issue of culture.” TERROR Forensic Teams ContinuedfromPageOne eral prosecutor’s office said Struggle to Identify that an investigating judge on Dec. 11 had issued international and European arrest warrants for Khalid, the subway bomber. Dead and Wounded On Wednesday, the same prosecutor said neither brother BY INTI LANDAURO search notices on social media. had criminal records linked to AND NOEMIE BISSERBE Marlène Laurent said she terrorism. The office didn’t of- was looking for her brother fer further details Thursday. BRUSSELS—Two forensic Gilles. “He was at the Mael- Prime Minister Charles teams were struggling to iden- beek metro station and we ha- Michel refused to accept the tify the people killed in twin ven’t heard from him since resignations of his ministers. terrorist attacks in the Belgian then,” she wrote in a Facebook Jan Jambon, the interior minis- capital because of the severity message with a picture of him. ter, told a Belgian broadcaster of the injuries and number of Among the victims that that Mr. Michel cited the “situ- nationalities involved, a have been identified is Adelma ation of war.” spokeswoman for Belgium’s Tapia Ruiz, a 37-year-old The most urgent question health ministry said. mother of two from Peru who for investigators is how many The identifications weren’t was killed at the airport as she more members of the terror expected to be finished until was about to check in for a

network remain at large. U.S. NICOLAS MAETERLINCK/AGENCE FRANCE-PRESSE/GETTY IMAGES Friday at the earliest, the flight to New York to visit her officials said Islamic State’s Police late Thursday raided houses in the Brussels district of Schaerbeek, where one attacker lived. spokeswoman said. sister. Her husband, Chris- strategy in Europe includes At least 31 people were killed tophe Delcambe, and two having fighters trained in Syria of urgency. ever, estimated there could be “Put a five gallon bucket of and more than 300 injured in daughters had stepped away tap into networks of radical- U.S. officials warned they be- several hundred more people acetone in a room, it is going to Tuesday’s attacks at the city’s from the check-in desk min- ized, disgruntled youth. lieve Islamic State is planning that aren’t known. smell like crazy,” said Otto J. international airport and the utes before the bomb ex- The Belgian federal prosecu- more attacks in Europe, but Led by veterans of the Iraq Gregory, a professor at the Uni- Maelbeek subway station. ploded. Ms. Tapia Ruiz’s fam- tor’s office said late Thursday that the timing was uncertain. insurgency, Islamic State has no versity of Rhode Island. The Belgian government ily and the Peruvian Foreign that it had arrested six people Belgium lowered its terror shortage of bomb-makers, ac- While making smaller hasn’t released the names of Ministry confirmed her death. and conducted searches in vari- threat level one notch from its cording to the Western offi- batches is safer and easier to the dead, and only three victims Leopold Hecht, a Belgian ous Brussels neighborhoods in- maximum level, meaning the cials, although the bombs used hide, experts say over time, the have been identified publicly by law student, and Olivier De- cluding Schaerbeek, where at threat of a new attack is no lon- in Brussels weren’t sophisti- explosives will decay and be- their families or by organiza- lespesse, a Belgian civil ser- least one of the attackers lived. ger seen as imminent. cated or designed to avoid de- come less effective. tions. Two of the wounded have vant, were killed in the at- In France, police also car- Paul Van Tigchelt, the head tection. Some analysts estimate U.S. and European officials yet to be identified, according tacks, according to the ried out raids in a Paris suburb of Belgium’s threat-analysis au- there may be hundreds of fight- said that purported Paris bomb to the health ministry. websites of organizations on Thursday and detained a thority, said the decision was ers trained to make triacetone maker Najim Laachraoui had The two forensic teams are linked to them. man who was in the “advanced made even though at least one been identified as the second examining potential clues such Belgian authorities have stage” of planning a terrorist suspect from the Brussels air- The most urgent bomber killed in the suicide at- as birthmarks and tattoos, but struggled to identify two of attack, French Interior Minis- port attack remains at large. tack on the airport, but Belgian are mainly relying on dental the wounded, who have been ter Bernard Cazeneuve said. “That doesn’t mean that question is how officials would say only they and medical records to try to unconscious since the attacks No link was immediately es- there is no more danger,” he many members of the were still trying to confirm his establish profiles for the dead and didn’t have documents on tablished with the recent at- said. “The threat remains seri- death. and missing to potentially find them. Only 121 of those injured tacks in Brussels or in Paris on ous and possible.” network are at large. Meanwhile, the lawyer for matches, said Jean Crèvecoeur, are still in the hospital, with Nov. 13, he said. Intelligence analysts believe Salah Abdeslam, another sus- a forensic dentist with the Bel- 63 in intensive care. While Belgium’s perfor- the threat in Europe is less a pect in the Paris attacks. who gian forensic department. In Washington, the State mance has come in for harsh set of interconnected cells, and triperoxide, the explosive dis- was arrested in Brussels last “The remains are in such Department said the number criticism, the European Union more the ability of these Syr- covered Tuesday in the apart- week, told a Belgian court his condition that it takes time to of Americans known to have as a whole has faced challenges. ian-trained fighters to tap into ment the Brussels attackers client wanted to be quickly assemble all the information been injured in the attacks re- Some measures that govern- the network for recruits, U.S. used. transferred to France after pre- for each body,” said Mr. Crève- mains at 12. No Americans are ments pledged to swiftly enact officials said. Authorities said they found viously suggesting he would coeur, who is working on the known to have been killed, after the Paris tragedy have yet At least 38,200 foreign fight- 15 kilograms (33 pounds) of fight extradition. “I think he remains of victims of the State Department spokesman to become reality. ers from at least 120 countries, TATP and nearly 40 gallons of wants to explain himself in bomb in the Maelbeek subway Mark Toner said. Those include plans for an including at least 6,900 from acetone and eight gallons of hy- France,” Sven Mary said. station. “We may find the re- Mr. Toner said the U.S. is air-passenger database that Western nations, have traveled drogen peroxide—enough to Despite the lower threat mains belong to more people working to account for other could be used by law enforce- to Syria since the beginning of possibly make eight more suit- level, security precautions re- than we originally thought.” U.S. citizens who were in ment to track terrorists return- the five-year conflict, James case bombs. main in effect. Subway lines The most severe injuries Brussels at the time of the tering to Europe. That has been Clapper, the U.S. Director of Na- An unstable, white, crystal- will be reopened in phases, with were burns and those caused rorist attacks on Tuesday and held up at the European Parlia- tional Intelligence, told Con- line explosive, TATP was also soldiers guarding open stations. by shrapnel and glass shards hadn’t been heard from, in- ment amid concerns about pri- gress in February. used in the Paris attacks. The Brussels Airport said it would projected by the blasts. cluding two individuals who vacy and data protection. According to Belgium’s jus- challenge is that making TATP remain closed through Sunday. Friends and families were either are U.S. government EU justice and security min- tice ministry, 451 fighters have in large quantities risks expo- —Gabriele Steinhauser in desperately trying to find news employees or relatives of gov- isters said Thursday that it left Belgium, of whom 117 have sure if neighbors smell the ace- Brussels and Dion of their loved ones who ha- ernment employees. He needed to be adopted in April returned. tone, as well as disaster if it ac- Nissenbaum in Istanbul ven’t been heard from since. couldn’t say how many others and implemented as a matter One senior U.S. official, how- cidentally detonates. contributed to this article. Many of them are posting were unaccounted for. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ** Friday, March 25, 2016 | A7 WORLD NEWS Terror Attacks Inspire New Recruits

BY STEPHEN FIDLER agency, estimated in February off and well-educated folk.” that around 5,000 Europeans Jihadists’ Journeys Islamic State, on the other The message from Brussels have traveled to Iraq and Syria Of the thousands of ﬁghters who traveled to join extremists in Syria hand, is “better led, organized reinforces the warning from to train and fight with jihadist and Iraq, hundreds have returned home to Western Europe. and supplied, rooted in terri- Paris four months earlier: Is- groups. Several hundred have tory, and more uncompromis- lamic State has the capability since returned, he said. Many Home country Returnees ing and brutal in action.” to commit deadly terrorist at- more are thought to have Tunisia 6,000 625* If the analysis is right, Is- tacks in the heart of Europe. come from other regions. Saudi Arabia 2,500 Unknown lamic State doesn’t need the Like al Qaeda in Afghani- To keep its mission alive, it Russia 2,400 Unknown spectacular successes along must do more of the same. stan before the Sept. 11 at- 2,000-2,200 600* the lines of 9/11, and in that As it tries to do this, the tacks, control over territory Turkey sense, it poses less of a threat 2,000* WOLFGANG RATTAY/REUTERS group has two strategic advan- has allowed Islamic State to Jordan Unknown than al Qaeda did. But it does Schengen, Luxembourg, borders tages. Conflict in Syria and train thousands of fighters and France 1,700 250* need a series of successful at- both Germany and France. Iraq has permitted the group direct missions abroad. Terri- Morocco 1,200 Unknown tacks in Europe—and in that to establish a home territory. tory is critical to maintaining sense poses a greater danger. Lebanon 900 Unknown And the refugee the threat: Once al Qaeda lost The proximity of its heart- Germany 760 200* ANALYSIS flows into Eu- its foothold in Afghanistan be- lands to Europe, together with Border rope have al- cause of U.S.-led military ac- U.K. 760 350 the hundreds of potential op- lowed it to em- tion, its ability to mount oper- Indonesia 700 162 eratives and thousands of sym- Checks bed fighters into the ations as complex as 9/11 Egypt 600* Unknown pathizers in place, makes it thousands of people fleeing gradually deteriorated. Belgium 470 118 likely it will carry out further the war zones. The public-transport attacks strikes. How many will depend 386 Those embedded fighters in Madrid in 2004 and London Tajikistan Unknown on how governments respond. Cast Pall include Europeans returning to in 2005 were inspired by al Bosnia 330 51 Even as countries like Bel-

the places where they grew up, Qaeda, but by then the center’s *Approximate ﬁgure. Note: Data are as of 2015 in the following months: January (Egypt); May gium direct more resources to In Village as well as battle-hardened ji- ability to direct fighters on the (France, Tajikistan); July (Indonesia); September (Russia, Jordan, Lebanon); October (Tunisia, the issue, building antiterror- hadists from elsewhere. This periphery was severely re- Saudia Arabia, Morocco, Belgium, Bosnia); November (Turkey, Germany, U.K.). ism expertise and trust among BY ANTON TROIANOVSKI has proved a murderous com- duced. As the training camps Source: The Soufan Group THE WALL STREET JOURNAL. governments to improve intel- bination of people with local shrank, the main al Qaeda ligence-sharing takes time. The problems of Europe’s knowledge and sympathizers threat stemmed from lone its height was intent on attack- most important goal as estab- “We’re not simply talking passport-free Schengen zone who can provide shelter and wolves—hard to detect and ing the West with the purpose lishing a caliphate in Syria and about hiring more people and reached this week all the way support, together with individ- deadly, but generally unable to of ultimately destroying it. Iraq. To do that it needs a they are immediately produc- back to the place it was born: uals with expertise in weapons scale up. Al Qaeda sought grand at- steady stream of recruits. tive. Analysts need a lot of the Luxembourg village of and bomb-building. It isn’t clear that Islamic tacks on the scale of 9/11 that As the U.S.-led coalition training and time before they Schengen. “People think this is a small State is directing its operatives would feel existential and pokes the wasps’ nest of Is- can contribute,” said Manuel Soon after the Brussels at- crew from Molenbeek,” said the way the Sept. 11 terrorists threaten to shake the founda- lamic State’s homelands, Is- R. Torres, a political scientist tacks, locals say they wit- Belgian Justice Minister Koen were directed from Afghani- tions of the Western order. “Al lamic State must seek to dem- and terrorism expert at Spain’s nessed a jarring sight: blinking Geens, referring to the Brus- stan. More likely, U.S. officials Qaeda was aiming at increasing onstrate its relevance to its Pablo de Olavide University. blue police lights and a traffic sels neighborhood that was say, Islamic State provides lethality. Whether ISIS is look- followers and potential re- Europe is making strides in jam on the highway to Ger- home to some of the Paris at- broad direction and leaves the ing for mass lethality is an cruits by carrying out attacks strengthening its security. But many caused by newly rein- tackers. “But that’s not operational details to its peo- open question,” said Ian Lesser, in the West. for now, he said, the threat is stated border controls. right….[Some] are unknown to ple on the ground. Brussels-based senior director Scott Atran, a Franco-Amer- growing faster than officials’ The threat of terrorism is us; often they haven’t been to U.S. military officials be- of the German Marshall Fund. ican academic who specializes ability to keep up. putting further pressure on Europe before.” lieve Islamic State differs fun- Islamic State, U.S. officials in terrorist motivations, has —Julian E. Barnes, the system under which, once Rob Wainwright, the direc- damentally from al Qaeda. say, attacks the West for a dif- described al Qaeda as “largely Matt Moffett inside one member state, peo- tor of Europol, the European While both groups hate the ferent reason: propaganda a decentralized movement of and Matthias Verbergt ple can cross unchecked into Union’s law-enforcement U.S. and the West, al Qaeda at value. The group has set its volunteers led by fairly well- contributed to this article. any of the 25 others. The zone is commonly known as Schen- gen because the treaty establishing it was signed near the village in 1985. Iraq Presses Fight Against Militants in North The zone’s survival was already under threat because of The Iraqi army launched an mer spokesman for Iraq’s Inte- the influx of migrants that offensive to retake the north- rior Ministry, voiced doubt poured into Europe last year, ern province of Nineveh from that the army’s success in the with some countries throwing Islamic State but gave no hint Makhmour district meant that up fences to stop them and re- if it was poised for an attempt the long-anticipated attempt storing checks at some cross- to regain control of Mosul, the to reclaim Mosul was immi- ings. Officials worried Islamic province’s largest city and a nent. State militants and other ex- militant stronghold. “There aren’t enough forces tremists were slipping in un- there, so how they are going detected amid the chaos. By Ben Kesling in to liberate anything?” Mr. France reinstated controls Baghdad and Dana Khalaf said. “At the maximum, after the Nov. 13 Paris attacks Ballout in Beirut it is an operation to secure a which aren’t felt in Schengen number of villages around the much because it isn’t near any The Iraqi advance on Makhmour area.” major crossings to France, Thursday came as Syrian re- Col. Warren also said the Mayor Ben Homan said. gime forces supported by operation to seize back Mosul The Brussels attacks led to Russian airstrikes and allied probably wasn’t at hand. more checks on the German Shiite militias moved to Some 2,000 to 3,000 forces side, including the highway within about 2 miles of the have been deployed to the new bridge across the Moselle River ancient city of Palmyra, ac- Iraqi army base, and others to Schengen. They only lasted cording to the Syrian state are involved in the initial Nin- two days, but were more dis- news agency. eveh operation, but less than ruptive and, for some, jarring. Palmyra, a Unesco World the 30,000 that will probably “Schengen doesn’t just rep- Heritage site, has been held by be needed to retake Mosul, ac- resent the Schengen area,” Mr. Islamic State since May. Its recording to U.S. officials’ esti- Homan said. “For many, it is capture would be the regime’s mates. also a kind of synonym for first major victory over the ex- Brig. Rasool, the spokesman freedom.” tremist group. ASSOCIATED PRESS for the Iraqi forces, said on At the same time, voices Iraqi troops retook four Islamic State is said to have fortified Mosul. Above, pro-militant demonstrators marched in June 2014. Thursday that airstrikes by decrying the system that were villages in Nineveh from the U.S.-led coalition forces once heard only on the popu- militant group’s control, a day’s military operations took Despite setbacks, since the campaign began around Mosul were continu- list fringe are moving more to military spokesman, Brig. place. there in August 2014, according. the mainstream. Yahya Rasool, told state tele- Two bases—one operated Islamic State has ing to Airwars, a nonprofit The retaking of the western Most mainstream political vision, which heralded the by the Iraqi army and an- held on to key areas group. city of Ramadi from Islamic leaders across Europe say army campaign with patriotic other by the U.S. Marines— The Iraqi army didn’t say State in December was viewed open borders underpin the Eu- music videos and stock foot- are located in Makhmour. in Iraq and Syria. how many soldiers were in- as an important initial test of ropean Union’s social cohesion age of Iraqi troops on the The area is near front lines volved in retaking the four vil- its ability to stage an offensive and enable seamless trade. A front lines. of fighting between Islamic lages on Thursday. to recapture Mosul, which is collapse would represent the The retaking of the four vil- State militants and Kurdish The territory it still con- No conventional U.S. forces likely to pose a much bigger first time that a major mile- lages was the first phase of fighters known as Pesh- trols serves as a haven to plan participated in the operation, challenge. stone of integration was re- the Nineveh campaign, the merga. and inspire terror operations. said Col. Steve Warren, a Since seizing Iraq’s second- versed. army said. It didn’t say when Islamic State is holding The militants face a U.S.-led spokesman for the U.S.-led largest city in June 2014, Is- Some European officials say the next phase would occur or tightly to key areas captured coalition of some 60 nations, military coalition fighting Is- lamic State is said to have for- that countries on the system’s when it might attempt to dis- in northern Iraq and eastern an array of local and foreign lamic State forces in Iraq and tified it with land mines and a periphery aren’t doing enough lodge Islamic State from Mo- Syria over the past three militias and persistent air- Syria. A U.S. Marine unit on tunnel network. to stop potentially dangerous sul, about 40 miles to the years, despite a string of bat- strikes. the ground provided artillery —Ghassan Adnan individuals from entering. northwest of the rural district tlefield defeats elsewhere and The coalition has conducted support. and Raja Abdulrahim “Let me say that Schengen of Makhmour, where Thurs- financial setbacks. nearly 7,500 strikes in Iraq Abdul Kareem Khalaf, a for- contributed to this article. is not the problem,” Dimitris Avramopoulos, the EU’s home- affairs chief, said after the Brussels bombings. “But let me also say that we cannot have a U.S., Russia Map Out Peace Strategy for Syria secure area of internal free movement without better con- BY ALAN CULLISON nent,” said U.S. Secretary of trol of our external borders.” State John Kerry, on a visit U.S. Imposes New However, a proposal by the MOSCOW—The U.S. and here. “It is not a job finished European Commission, the Russia praised the progress of and that is why we talked here Sanctions on Iran EU’s executive arm, to create a a cease-fire in Syria at a meet- today.” Defense Entities new border agency and allow ing at the Kremlin on Thurs- At a joint news conference, it to decide on deployment has day, and promised to build on Mr. Kerry and Russian Foreign WASHINGTON—The Obama faced resistance from some the success by supporting Minister Sergei Lavrov said administration imposed new member states. peace talks in Geneva between they would call for an end to sanctions against Iranian de- Germany has been checking the Syrian government and territorial gains and for a re- fense firms and units of Teh- documents at its southeastern opposition parties. lease of hostages by warring ran’s elite Revolutionary borders since September in an After four hours of talks in parties in Syria. They also en- Guard, for their alleged role in attempt to control the influx the Kremlin, Moscow and dorsed a new constitution for supporting their country’s re- of refugees. About two hours Washington apparently remain Syria, renewed talks for a po- cent ballistic-missile launches. after the Brussels attacks, it divided over a crucial element litical solution and an end to The Treasury Department added checks on its south- over any peace agreement— the use of “indiscriminate also blacklisted firms in the

western frontier—affecting, the future of Syrian President weapons.” ALEXANDER NEMENOV/REUTERS U.K. and United Arab Emirates among other places, Schengen. Bashar al-Assad. While the The talks in Moscow came Messrs. Putin and Kerry during a Kremlin meeting on Thursday. on Thursday for allegedly Mr. Homan said he couldn’t U.S. has long held that Mr. as Syrian government forces, serving as business fronts for remember the last time there Assad’s departure is necessary backed by Russian air power, Stafan De Mistura, the envoy, low-up to a phone call between Iran’s Mahan Air, which was were such controls between to any peace agreement, the continued to make gains praised regime officials and President Vladimir Putin and sanctioned in 2011 for facili- Germany and Schengen. Kremlin has insisted his gov- against rebels and were re- opponents. President Barack Obama this tating the movement of arms Tobias Wilhelm, who runs a ernment is Syria’s mainstay portedly fighting their way While U.S. officials initially month, when Russia said it for the Revolutionary Guard. local recycling center, said against chaos. into the historic city of Pal- criticized Russia for bombing would scale back its bombing Iran has conducted ballistic- 80% of his 200 employees live But with a cease-fire taking myra, which has been held by all opponents of Mr. Assad, in Syria. His trip was widely missile tests in recent weeks in Germany or France. More hold in Syria, both sides said Islamic State insurgents. Moscow lately has scaled back covered on Russian state-run that U.S. officials said may border checks would slow they would, for now, try to put The meeting also came as a the bombing and has focused television, with commentators have violated a United Nations down exports, he said. aside differences to restore or- special United Nations envoy on Islamic State and the al- celebrating U.S. engagement Security Council resolution. Ira- “If this were to become the der in Syria. announced the close of the Nusra Front, a group allied with the Kremlin, after a pe- nian officials say the missiles permanent situation, we “The improvements are first round of talks aimed at with al Qaeda. Both groups are riod of diplomatic isolation im- are defensive, aren’t part of a would have enormous prob- welcome but they are not suf- stopping violence and moving excluded from the truce. posed by Washington for Rus- nuclear program, and are legal. lems,” he said. ficient nor are they perma- toward a political transition. Mr. Kerry’s visit was a fol- sia’s actions in Ukraine. —Jay Solomon For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8 | Friday, March 25, 2016 ***** THE WALL STREET JOURNAL. FROM PAGE ONE

difficult to sustain,” he says. “If HEALTH California wants to have this coverage, it should be by Sacra- mento.” ContinuedfromPageOne California, like many states, someone has to care for them,” doesn’t have an ironclad prohi- says George Leventhal, a Demo- bition on providing health care cratic council member who a to people here without authori- decade ago started a local initia- zation. States have flexibility tive to provide care to unin- over Medicaid eligibility, and 16 sured immigrants here in Mont- of them allow the program to gomery County, Md., a suburb cover populations of illegal im- of Washington. “We all pay any- migrants, such as children and way.” pregnant women. Local critics contend the California and New York have county should support immigra- some of the broadest inclusion tion enforcement rather than criteria. Oklahoma has a preg- undermine it. Brad Botwin, a lo- nant-women’s program aimed cal opponent of illegal immigra- at ensuring prenatal care for bation, objects to the cost of the bies who will become U.S. citi- county health program. “They zens, named “Soon to be Soon- can’t fix the roads. The metro ers.” system is absolutely falling States would struggle to find apart. But they have the money the money to insure all immi- to put up these health benefits,” grants, even if they wanted to. he says. California will have around Republican and Democratic 1.5 million adult immigrant resi- federal lawmakers alike agree dents without insurance in 2019. with the Affordable Care Act’s To offer Medicaid to those who prohibition against providing meet the program’s low-income government-subsidized insur- criteria, the state likely would ance to anyone who cannot have to find at least $400 mil- prove a legal immigration sta- lion more a year, according to

tus. The presidential candidates STEPHEN VOSS FORan THE WALL STREET JOURNAL estimate by the University of also are in agreement. The Re- A certified nurse practitioner, working with a translator, talks to a patient at the Proyecto Salud clinic in Montgomery County, Md. California, Berkeley’s Center for publican candidates also advo- Labor Research and Education cate overturning the entire sys- building in Wheaton close to a sentially, local taxpayers and ev- that is based on the assumption tem created by the health law, metro station, fast-food fran- eryone who has insurance and Immigrant Health Care that not everyone would enroll. along with stepping up immi- chises and an apartment com- uses the hospital system. Of the 25 U.S. counties with the largest populations of illegal If everyone did, the price would gration enforcement. plex. In Los Angeles, 135,000 low- immigrants, 20 have programs providing health care for them. likely grow to at least $720 mil- Unauthorized immigrants ac- The health centers put to- income county residents with- lion. count for at least one-quarter of gether treatment plans for dia- out legal U.S. residency status Doesn’t have health program that serves unauthorized immigrants Democratic presidential can- the approximately 30 million betes, orthopedic injuries and are assigned primary-care pro- Unauthorized Number of immigrants didates Bernie Sanders and Hil- uninsured people in the U.S., the anxiety disorders, among other viders in a “medical home” de- immigrant population treated annually (est.) lary Clinton have said they want Congressional Budget Office es- things. Their budgets rely on signed to coordinate their care. to see universal health coverage Los Angeles County, Calif. 1,062,000 135,000 timates. donated help from area special- They get an ID card, use of a in the U.S., but that they favor Marielena Hincapie, execu- ists, hospitals and drug compa- member-services hotline and a Harris County, Texas 373,000 65,000 the status quo on the health tive director of the National Im- nies, along with modest patient booklet akin to an insurance Cook County, Ill. 323,000 20,000* law’s immigration restrictions. migration Law Center, an immi- contributions. Past government brochure that explains how to Orange County, Calif. 274,000 N/A They have said they would be grant rights group, says evaluations of the centers cred- gain access to screenings, a Dallas County, Texas 242,000 115,000* willing for illegal immigrants to programs to treat them are an ited them with a 41% reduction clinic network for specialty care Queens County, N.Y. 238,000 71,000 use HealthCare.gov as a tool to example of people acting locally, of behavioral-health emergency- and prescription drugs. San Diego County, Calif. 205,000 N/A shop for coverage, but wouldn’t despite Washington’s stance. room visits and a 67% reduction In the past year, the number want the federal government to Maricopa County, Ariz. 190,000 N/A “We may not have gotten fed- in trips related to chronic condi- of California counties with pro- help pay for premiums or allow eral legislative immigration re- tions—a big incentive for local grams akin to the Los Angeles Kings County, N.Y. 181,000 80,000 them to enroll in Medicaid. form, but I can tell you we are hospitals to contribute, officials one has jumped from nine to 48, Riverside County, Calif. 158,000 7,600 The Republican front-runner getting immigration reform say. in part because of the entry of a Miami-Dade-Monroe Counties, Fla. 156,000 8,500 has made tighter immigration from the ground up,” she told “We are saving money to the consortium of rural counties. Boston Area NECTA, Mass.† 148,000 103,000 restrictions a core part of his health-law supporters at a re- system by doing this,” says Santa Clara County, Calif. 142,000 54,000 health plan. cent conference. César Palacios, head of Proyecto San Bernardino County, Calif. 138,000 1,300* “If we were to simply enforce Salud. “If we don’t pay now Continuing debate the current immigration laws Bronx County, N.Y. 114,000 57,200 when it is easy money, we are The debate is playing out and restrict the unbridled Financial commitment going to pay later on.” county by county across other Clark County, Nev.† 113,000 1,000 granting of visas to this country, For communities that pro- The county’s program, big states, including Texas. For Alameda County, Calif. 109,000 32,500 we could relieve health-care vide care to illegal immigrants, “Montgomery Cares,” has decades, state officials there Tarrant County, Texas 103,000 N/A cost pressures on state and lo- the financial commitment is sig- served mostly immigrants with- have wrangled over whether Hidalgo County, Texas 94,000 5,000 cal governments,” Donald nificant. Interviews with offi- out legal status since the big- counties should treat uninsured Fresno County, Calif. 86,000 5,000 Trump said in his health-policy cials in the 25 counties indi- gest provisions of the health illegal immigrants, without Broward County, Fla. 83,000 900 platform. cated that local initiatives law kicked in two years ago. reaching a firm decision. As a Obama administration offi- Fairfax County, Va. 83,000 N/A provide nonemergency care for There were 110,000 uninsured result, local leaders have gone cials, including Health and Hu- at least 750,000 unauthorized their own way. Montgomery County, Md. 83,000 25,000 man Services Secretary Sylvia immigrants across those coun- For counties that Houston and Dallas together Gwinnett County, Ga. 80,000 21,600* Mathews Burwell, acknowledge ties, costing them more than $1 cover tens of thousands of ille- Travis County, Texas 79,000 36,100 that immigration status is a key billion a year—almost all from provide care, the gal immigrants in charity-care * Number also includes U.S. low-income, uninsured American citizens because county factor in the size of the U.S. un- local funds. financial burden can programs—65,000 in Houston, doesn’t track immigration status insured population, and that re- Some of the programs have and some portion of an 115,000- † Boston supports a state-run program; Clark County has a state-overseen nonproﬁt program ducing that number to zero operated for decades, providing be significant. person program in Dallas, Sources: Migration Policy Institute would require changes in immi- services for immigrants along- where the county doesn’t track (population ranking); counties (health programs) THE WALL STREET JOURNAL. gration policy. side other low-income county immigration status. But even those changes likely residents. Others are brand new people in the county at that “Consider the implications of migration status. ment, they have to pay for it— wouldn’t resolve the health-cov- and explicitly exist for immi- time. At least 50,000 were set half the people on the [local] Those restrictions have been at prices that likely are prohibi- erage issue. grants. All essentially serve as to remain uninsured because of rail lines and buses carrying in place for about a decade. “At tive for most. The Obama administration substitute health plans for ille- the health law’s restrictions on them to work being denied flu that time, there was a tremen- In Fresno County, Calif., a de- has said that children granted gal immigrants who are prohib- unauthorized immigrants get- shots,” says Clay Jenkins, the dous discussion that occurred,” bate over accepting $5.5 million immigration-enforcement re- ited from getting Medicaid or ting Medicaid or subsidized pri- chief elected official for Dallas says G.K. Maenius, the county the state said could only be prieves under a 2012 executive subsidized private insurance un- vate coverage. County. “There are 2.5 million administrator. “Our hospital dis- used to provide specialty care action still will be subject to the der the health law, and whose In New York City, the public- people that live here, and trict was struggling to have the for around 5,000 unauthorized health law’s restrictions. After jobs generally pay too little for hospital system estimates it they’re all important and finances to take care of legal immigrants split the board of an executive action that would them to buy coverage. provided nonemergency care they’re all deserving of respect residents of Tarrant County.” supervisors 3-2. The county extend that reprieve to around Montgomery County paid last year to 208,000 unauthor- and medical care,” says Mr. Jen- As a result, he says, the hos- ended up taking the money. four million adults, the Obama about $12 million for health ized immigrants across Brook- kins, a Democrat. pital district opted to treat peo- Andreas Borgeas was one of administration said it would care for almost 25,000 immi- lyn, Queens and the Bronx, the By contrast, in Tarrant ple without legal status as if the supervisors to vote “no.” He continue to subject them to the grants last fiscal year across a boroughs with the largest popu- County, which includes Fort they lived in any other county. says his opposition is chiefly fis- restrictions, too. dozen clinics. One of them was lations of such immigrants. The Worth, the system that provides The emergency room treats ev- cal. “We have distorted the dis- That action is now before the Proyecto Salud, or Project cost was about $400 million, safety-net care is limited to resi- eryone. For noncounty residents cussion and created an ongoing Supreme Court, with arguments Health, housed in a government picked up by the system—es- dents who can prove legal im- to obtain nonemergency treat- entitlement that’s going to be in mid-April.

garish costumes and synthy SKATE score, he calls it the “pinnacle ’80s musical.” When he decided to do an ContinuedfromPageOne episode of “The Goldbergs,” weeks ago—skateboards and the ’80s-themed ABC sitcom scooters are more popular he created, about a school pro- these days. The show’s direc- duction of “Starlight Express,” tor, Donald Wright, told them he showed clips of it to youn- at a recent rehearsal he hadn’t ger writers who had never borrowed and rented enough heard of it. “I didn’t remember pairs for everyone yet. how shockingly cheesy it was,” Student Alyson Vigneau he says. called out to two friends as Mr. Wright, in Burlington, she entered the gym, “Want to says the show offers fewer come in here and watch me deep ideas than many others break my neck?” he directs. His actors say they

The day’s lesson was about ADAM THOMPSON/THE WALL STREET JOURNAL JERRY CRABTREE love its upbeat songs and mes- turning, which involves cross- Hunt Middle School students, left, practice skating in a line. Zach Pearson and Jackie Ovassapian play in Libertyville’s production, right. sage about loyalty. ing one foot over the other. The students in the Hunt The actors linked up as trains, In suburban Chicago, teach- recorded video showed them best performers had been ten- from “B-A-S-T-A-R-D” to “B-U- gym worked on their racing looking at their feet. Step over ers at Libertyville High School continuing past the cafeteria tative in rehearsals before one T-T-H-E-A-D.” formations. Eighth-grader your inside foot to turn, Mr. were feeling uninspired as and the lake outside. “It was cathartic day: “The tears That song also brings up a Enzo Boone was leading one Wright told them, demonstrat- they considered a list of possi- probably the hardest show we came.” He recalls her saying, criticism of the show’s female train. He had pulled his striped ing the skill he gained playing ble shows. Then one suggested will ever do,” says Mr. Helvie. “I’m terrified I’m going to fall characters. “Basically all the knit cap over his helmet. Will college ice hockey. Two girls in “Starlight.” Dustin Helvie, the The “Starlight” coming over.” girls are interested in which Belluche ably skated backward. sneakers pulled a third on school’s fine arts supervisor, from the Ringwood School, in He initially worried about engineer they can hitch up Mr. Wright paced them wheels by the elbows. Mr. recalls, “Our breath was taken Ringwood, England, has been adding cast members to the with,” Mr. Hawkins says. through the arm-churning pis- Wright saw a potential derail- away. ‘What? Can we really do postponed to June from Feb- backs of trains. “The more you Mr. Wright addressed this ton motion. If the moves are ment: “Always to your left!” this?’ ” ruary after a storm damaged add to the loop, the more you by casting a girl to play Elec- simple but in sync, they will When the director said to He says prospective cast the tent rented for the show. risk one going wobbly and tra, an electric engine origi- look good, he reassured the take five, the formation fell members took lessons for The tent holds 430, compared knocking the whole line over,” nally played by a man. giggling youngsters. apart. Students grabbed each months, even before auditions, with the 260-person capacity Mr. Hawkins says. “Starlight Express” isn’t as Will the children pull off other or hit the gymnasium’s to learn tricky moves such as of the school’s auditorium. Teachers must also tangle well-remembered as some of their moves on wheels when padded walls to stop. ascending a ramp while sing- Ian Hawkins, the school’s with more abstract issues. Mr. Lloyd Webber’s other pro- the curtain goes up? Mr. Mr. Wright says his show ing. They rehearsed so much, head of performing arts, says Though Mr. Lloyd Webber was ductions. His “Jesus Christ Su- Wright preaches calm. “Some has a “humble” budget of un- the production was forced to the production’s £50,000, or inspired by the children’s char- perstar” has 66 coming North of them aren’t bad,” he says. der $10,000, far from the $8 replace worn toe stops before about $72,000, budget is triple acter Thomas the Tank Engine, American amateur produc- “We’ll have railings.” million producers spent for opening night last November. Ringwood’s norm. The six- he sprinkled in grown-up innu- tions, according to Rodgers “Starlight’s” 1987 Broadway The production removed show run is already sold out, endo. (A sample from “Rolling and Hammerstein. VIDEO debut, a record at the time. two rows of seats from the and it has its own YouTube Stock”: “Don’t stop now, we Still, “Starlight” has die- That show’s set allowed actors school auditorium and built teaser trailer. gotta keep it going all night.”) hard U.S. fans, among them TV See video about to zip across three different ramps for the players to take Of the 90 cast members, 11 For the ending of one coun- writer Adam F. Goldberg. He ‘Starlight Express’ levels onstage, including the action off the stage into to 18 years old, six knew how try-inflected ballad that spells saw the show in New York in WSJ performed at across a movable suspension the house. After the trains to skate. Mr. Hawkins calls this out several of the lyrics, Mr. 1987 and in London as a bar .COM schools at bridge. raced past the audience, a pre- a “massive issue.” One of his Wright changed the final word mitzvah gift in 1989. With its wsj.com/ahedvideo. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, March 25, 2016 | A9 OPINION

Defusing the Supreme Court Fight BOOKSHELF | By Mara Hvistendahl By Michael W. McConnell cally that “once the political last a generation. You can prac- Second, if a significant Hours of Silence season is underway . . . action tically hear the shudders from number of Republican voices resident Obama has on a Supreme Court nomina- the center-right. go personal—making base- P nominated Judge Mer- tion must be put off until after There is one course of ac- pleasing attacks on Judge Gar- rick Garland to the Su- the election campaign is over.” tion that satisfies the needs of land rather than focusing on And Hard Work preme Court, and the Senate In 2006, even a freshman sena- Republican senators and Pres- the process—they would make has no intention of giving its tor named Barack Obama tried ident Obama. The Republicans it difficult to shift gears to a advice and consent. The presi- (unsuccessfully) to filibuster will refrain from personal or quick confirmation after the dent and his supporters can President George W. Bush’s ideological attacks on the election. In Search of Buddha’s Daughters complain and hector, but they nomination of Justice Samuel nominee, but also refrain from The third, most interesting By Christine Toomey can do nothing about it. It Alito. There cannot be one set any actions on the nomination potential glitch is Hillary (The Experiment, 370 pages, $24.95) looks like a standoff. of rules for Republican nomi- before the election. The presi- Clinton. If elected, she may Or so both sides want us to nees and a different set for dent and his allies will pre- prefer to name her own jus- he question of how much of oneself a writer should think. Republicans want to Democratic nominees. Judge tend to be outraged by this in- tice. The public should de- T insert in a book is always a tricky one, but it is par- appear resolute to their base, Garland now reaps this whirl- action, but their outrage is mand to know—now— ticularly thorny when writing about Buddhism. Bud- and Democrats want them to wind. nothing but theater for the whether Judge Garland is the dhist faith centers on letting go of the ego, and many of the look unreasonable. But there politically naive. sort of nominee she would women Christine Toomey interviews for her new book are is an obvious path forward, if In November, when the choose. Surely she will have fleeing from some version of themselves. The women come only we look more carefully at Wait for a lame-duck people speak, either a Repub- to answer “yes,” which will from East and West and span a broad range of back- the true interests and inten- vote. And get Hillary lican or a Democrat will be make it difficult for her to grounds, from princess to pilot, but all share a desire to tions of the two sides. elected. If it is a Republican, change nominees in the event shed worldly trappings and search within. “For me, to By making a surprisingly on the record now. that president will substitute she becomes president. become a nun is to erase the past,” a former writer of conciliatory nomination— a more conservative name for This lame-duck confirma- erotic fiction tells her in Japan. Some of the nuns Ms. Judge Garland is certainly a Merrick Garland’s. If it is a tion scenario gives the Ameri- Toomey encounters refuse to even discuss their lives before liberal, but has a long record Nonetheless, most Senate Democrat, the Senate will can people a democratic voice. Buddhism. Why should the author? of fairness and fidelity to the Republicans understand that swiftly take up the Garland It enables them to express That question hangs over “In Search of Buddha’s law—President Obama has Merrick Garland is as accept- nomination and confirm him. their preferences about the Daughters: A Modern Journey Down Ancient Roads,” as Ms. signaled that he is truly inter- able a nominee as they could Don’t expect the Republican nation’s highest court by cast- Toomey, a former foreign correspondent for the Sunday ested in getting his nominee expect from any Democrat. leadership to speak publicly of ing their votes for one party Times of London, travels around the world staying with onto the court. Many of the They are asking themselves, these eventualities, but don’t or the other. If Democrats win nuns from Burma to president’s detractors pre- behind closed doors, whether imagine they aren’t thinking the presidency, the court California, drawing the dicted, and his supporters it wouldn’t be better to con- along these lines. Depending could have a respected, rea- reader inside their unex- hoped, he would make a more firm Judge Garland than to on the results of the November sonably moderate new justice pectedly fascinating lives. partisan and ideological take the risk of whatever election, it will not be surpris- without a protracted and divi- The vows they have taken choice. Many on the left are nominee a victorious Hillary ing to see Associate Justice sive confirmation process. If vary from one culture to sorely disappointed with the Clinton (or other Democrat) Merrick Garland on the bench Republicans win the presi- the next—in Nepal, nuns nomination of a 63-year-old would name. by January. dency, we’ll find out just how pledge to sleep only on beds white Harvard-educated judge The rise of Donald Trump in What could derail this sce- sincere Democrats are about that are the length of a who tends to side with prose- the GOP primaries makes this nario? Three things. First, if giving nominees a fair hearing forearm or less from the cutors over criminal defen- prospect ever more worrisome. the president and his allies es- and up-or-down vote. ground, while in Japan sex- dants and to support national- Mrs. Clinton is a weak presi- calate their rhetoric about sen- ual activity is allowed. In security measures. dential candidate, but the pros- atorial “duty”—conveniently Mr. McConnell, a former general, though, the women For his part, Mr. Obama pects of a candidate like Mr. forgetting their own part in judge on the 10th U.S. Circuit sleep and eat very little, knows as well as anyone that in Trump leading a divided Re- politicizing the confirmation Court of Appeals, is a professor maintain long hours of silence past presidential election years publican Party are at best process—they could throw and director of the Constitu- and work hard. Democratic senators denied wildly unpredictable. A Presi- away the goodwill generated tional Law Center at Stanford In Nepal, Ms. Toomey meets a hearings to dozens of Republi- dent Clinton who needs to ap- by the Garland choice and per- Law School and a senior fellow former police officer who left her husband and son to join can judicial nominees. In 1992, pease her activist base is a suade at least 40 senators it at the Hoover Institution. a nunnery where women study kung fu. In Dharamsala, In- Vice President Biden, then President Clinton who might go would be better to risk a future dia, she talks to a Korean-American woman whose parents chair of the Senate Judiciary far left with a Supreme Court nominee than to yield, even in Kimberley Strassel is away. rush her from the car on visits home so that the neighbors Committee, stated unequivo- nominee, with effects that will a lame-duck session. won’t see her shaven head. In England, the author interviews a former host of the fast-paced car show “Top Gear,” who concluded that she craved solitude after a publicity stunt briefly landed her in jail. Alone in a cell, she tells ‘Mere Christianity’ Still Gets a Global Amen Ms. Toomey, “I realized I needed to go away somewhere and sit quietly.” HOUSES OF During March educated Chinese Christians twine his political and reli- ages, metaphors and analogies Structured as a travelogue, “In Search of Buddha’s WORSHIP Madness sev- are most likely to have read. Its gious beliefs. This eventually that capture the imagination. Daughters” is almost encyclopedic in its cataloging of spiri- By George M. eral years greatest popularity is in the leads the “patient” to believe The Lewis of “Mere Christian- tual seekers. Ms. Toomey writes of elderly nuns, teenage Marsden ago, the Inter- U.S., where it is still read by politics is paramount and that ity” is the same as the Lewis of nuns, psychoanalyst nuns, whistleblower nuns, nuns who Varsity Chris- thoughtful evangelicals, along Christianity’s value derives “The Chronicles of Narnia.” were poor, nuns who were rich, nuns who were Catholics, tian Fellow- with thousands of Catholics, chiefly from its support for his Imagination, he believed, was nuns who were drug addicts, nuns who were married and ship’s Emerging Scholars Orthodox and mainline Protes- party’s positions. Accordingly, “the organ of meaning,” even if nuns who are still married. Woven in among these stories Network ran “The Best Chris- tants. Lewis carefully avoided tying reason was “the organ of is an examination of the secondary role that women play tian Book of All Time Tourna- What accounts for its last- his presentation of Christian- truth.” within much of Buddhism. ment.” Beginning with 64 ing popularity? Lewis was de- ity to partisan politics. Lewis’s first ambition had entries, participants voted on a termined to present only the been to be a poet. It shows in series of paired competitors timeless truths of Christianity his prose, where meaning is Some Buddhist nuns use iPads. Others live in through elimination rounds. rather than the latest theologi- Since 2001, the book often conveyed through vivid huts without electricity. And some are made to C.S. Lewis’s “Mere Christianity,” cal or cultural fashions. In the has sold 3.5 million analogies. Lewis writes that a first seed, easily made the book’s preface, he describes it when God enters your life, he serve monks meals and bathe in their bathwater. Elite Eight, where it handily de- as an attempt to explain and copies in English alone. begins “to turn the tin soldier feated St. Augustine’s “City of defend “the belief that has into a live man. The part of you God.” In the Final Four it beat been common to nearly all that does not like it is the part Despite following a credo that upholds the importance of Dietrich Bonhoeffer’s “Cost of Christians at all times.” The writer’s knowledge of that is still tin.” He explains the feminine, some Buddhist traditions do not permit Discipleship,” but in the finals it He elsewhere criticized history also helped him con- that becoming Christian isn’t women to be fully ordained. Ms. Toomey tells of nuns who was edged out by Augustine’s “chronological snobbery” or the nect with his audiences. As a an improvement but a transfor- are expected to serve monks their meals and bathe in their “Confessions.” assumption that the popular prototypical Oxford don, Lewis mation, like a horse becoming a bathwater. The Dalai Lama once said that he may be reborn Not bad. Who else could beliefs of one’s own era were might have been expected to Pegasus. as a woman—a remark to which an English nun who spent have gone up against Augus- superior to the “antiquated” have difficulty understanding A final strength of Lewis’s 12 years meditating in a remote Himalayan cave retorts, “If tine? And Lewis hadn’t even ideas of the past. The peculiar the many varieties of ordinary book is in his ability to stand he ever got reborn as a woman, they would never ever rec- planned for “Mere Christian- intellectual fashions of our people who listened to wartime aside and point toward his sub- ognize him.” Many of the women Ms. Toomey meets are ity” to be a book. During the time, he wisely understood, will BBC broadcasts. In fact, he ject—rather than himself. richly portrayed, especially in the West, where Buddhism’s dark days of World War II, the soon look quaint to later gener- used his expertise as a student Lewis once wrote that a poet introduction was mixed up with the Beat movement, hippie writer presented four sets of ations. It is not surprising then of the history of literature for should not be saying “look at mysticism and Leonard Cohen—whose Zen teacher, inciden- BBC radio talks on basic Chris- that Lewis’s time-proven views the opposite effect. me,” but rather “look at that.” tally, was recently accused of groping and sexually harass- tianity. He had these published are still flourishing while most Studying many eras of liter- Lewis acts like a guide on the ing female students over a span of decades. in several paperbacks. Not un- other mid-20th-century works ature and language made Lewis journey from unbelief to faith. Throughout much of the narrative, the author appears as til 1952 did he collect them are nearly neglected. acutely alert to the peculiarity He points people to see, as he a distant observer, revealing little about her motivations together under the new title. Lewis’s determination to of how mid-20th-century Brit- has, the time-tested beauty of and dreams. The reader learns that she has attended The book always sold well, present only timeless views ish people thought and spoke. God’s love in Jesus Christ. Not Oxford and trained as a yoga instructor, that she was drawn but in an unusual trend, its also helped him avoid political He also had a good ear for lis- everyone will see the beauty or to Buddhist nuns after her mother died, and that—perhaps popularity has grown with temptation. He believed it divi- tening to how ordinary people be persuaded. But those who the only truly revealing personal detail—as an adolescent time. Since 2001, “Mere Chris- sive to emphasize “Christian- talked. He saw himself as a get a true glimpse will be she nearly joined the cult Children of God. tianity” has sold more than 3.5 ityand...”asin“Christianity translator who worked to bring drawninbyitspower. Yet “In Search of Buddha’s Daughters” is peppered with million copies in English. It has and the New Order.” In “The common Christian teachings passages that hint at a dawning spiritual discovery. At been translated into at least 36 Screwtape Letters,” Lewis has into the vernacular. Mr. Marsden is a professor times while reading, I wondered if the book would end with languages and is said to be the the senior devil tell his protégé “Mere Christianity” contains emeritus of history at the Uni- Ms. Toomey being ordained. “[I]n the company of the book that, next to the Bible, to encourage a man to inter- arguments enlivened with im- versity of Notre Dame. extraordinary women I am meeting, my way of asking questions of the world is changing,” she writes. Over 100 pages later, she repeats that it is “in the wise company of Bud- dhist nuns that I have begun to glimpse some of the deeper A Bad Time to Cut U.S. Nuclear Capability truths I have sought for a long time.” But she never addresses what those deeper truths are, or what spiritual By Matthew R. Costlow U.S. nuclear forces currently savings amount to less than Russia’s 2014 invasion of questions drove her to write the book in the first place. make up about 2%-3% of the 1% of total outlays. Ukraine and apparent willing- That is a missed opportunity. Absent any real narrative t is budget season in U.S. defense budget. Even There are better ways to ness to employ nuclear weap- arc, the book becomes a long string of vignettes—albeit I Washington, and nuclear- when the biggest bills for meet or exceed the $4 billion ons in a conventional-regional memorable ones. At a northern California hermitage that is disarmament doves have modernization come due in in annual savings that nu- war presents the U.S. nuclear leading a movement for full gender equality within Thera- again morphed into budget the late 2020s, like the re- clear-disarmament advocates arsenal with an unprecedented vada Buddhism, Ms. Toomey describes women who live in hawks. The familiar pitch is placement strategic subma- propose. The Congressional challenge to deterrence stabil- tiny huts deep in the forest without electricity or running also back: Reducing the U.S. rine and bomber, the total Budget Office recently re- ity. water, relying on solar camping showers and basic cooking nuclear arsenal will ease ported that the government As Robert Scher, assistant equipment. She watches as the hermitage’s founder con- global tensions, enlighten could save between $3.1 bil- secretary of defense, recently sults an iPad—charged using solar panels—to determine the world leaders and save scarce Short-term budget lion and $5.7 billion annually told Congress: Flexible and time of day at which the sun will reach its zenith and signal defense dollars. gains would be risky by shifting some noncombat, resilient U.S. nuclear capabili- that she must fast until the following morning. Later, Ms. These suggestions might military-support jobs to civil- ties are critical when the U.S. Toomey talks to a young Harvard-educated Thai nun at the seem reasonable if one as- as dangers keep rising. ian employees. This can be “must not only avoid unin- hermitage who confesses: “There are times when I’m doing sumes that the defense bud- done without harming current tended escalation, but also walking meditation and I get this urge to break out in some get is being crushed by nu- conventional or nuclear capa- deter deliberate nuclear esca- hip-hop moves.” clear modernization programs estimated cost won’t reach 5% bilities. lation like that envisioned in Such splendid details carry the book a long way, as the and that effective deterrence of the budget. Since the num- Nuclear reductions would Russia’s current strategy.” author travels across the world, joining nuns as they wake can be maintained with much ber of nuclear weapons in the also have serious strategic im- If the heavily sanctioned at 3 a.m., perform their chores and endure grueling medi- fewer nuclear weapons. Both national stockpile has fallen plications for U.S. adversaries, Russian economy can sustain tation sessions. Ultimately, though, the reader may be left assumptions are wrong—and over 75% since 1991, there is as well as NATO and Asian Mr. Putin’s nuclear modern- wondering: Where, in this quest to detach from the ego, is threaten the future safety of little margin left to cut. allies. Responding to Russian, ization plans, the U.S. can Christine Toomey? the U.S. and its allies. Yet analysts like Lawrence Chinese and North Korean afford to modernize its arse- In 2001 budget analyst Korb and Adam Mount of the aggression by withdrawing nu- nal as well. A lack of political Ms. Hvistendahl is the author of “Unnatural Selection: David Mosher referred to the Center for American Progress clear weapons from Europe or will in Washington is the only Choosing Boys Over Girls, and the Consequences of a World search for savings in the have put forward plans that cutting replacement subma- obstacle to adequately fund- Full of Men.” nuclear budget as “the hunt significantly reduce the U.S. rines (as Messrs. Korb and ing weapons meant to deter a for small potatoes.” The many nuclear arsenal while saving, Mount call for) won’t comfort nuclear attack against the Coming in BOOKS this weekend fixed costs associated with they claim, $120 billion over U.S. partners or deter revanch- homeland and U.S. allies. And maintaining U.S. nuclear sys- 30 years. Even if the U.S. can ist leaders like Vladimir Putin. that is no small potato. Henry James & Constance Fenimore Woolson • Romanticizing tems—and a relatively small save that much, and if the av- Though the Cold War is the Spanish Civil War • The discovery of gravitational waves Mr. Costlow is a policy an- budgetary footprint to begin erage base defense budget is over, the possibility of inter- • Secrets of Kevin, Kobe and King James • The joyful alyst at the National Institute with—don’t offer sizable $500 billion annually over the state warfare, including nu- disobedience of Mandelstam • Rusticating Dylan • & more savings over the long term. next 30 years, the potential clear clashes, has endured. for Public Policy. 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 | Friday, March 25, 2016 THE WALL STREET JOURNAL. OPINION

REVIEW & OUTLOOK LETTERS TO THE EDITOR Belgium’s Tragic Terror Lessons Kasich: Hope of the GOP or Spoiler for Trump? hortly after 9/11, a self-deprecating joke traveler in the European Union. Attempts to Your glowing editorial about the should be decided by Republicans, circulated that Belgium was impervious collect, and share, PNR have been in the works Ohio governor having a path to the not crossover lefties or in a smoke- S nomination is both over the top and filled room of establishment party to a similar attack. The terrorists might since at least 2007. But the effort has been unsympathetic to the will of Republi- members dismissing the will of the hop in a cab whose ornery stalled in the European Par- cans and conservatives (“Kasich Into conservative voters they are sup- driver would only speak Flem- Why Brussels has liament, where even the Brus- the Breach,” March 16). posed to represent. ish. Or take the wrong exit in become ground zero sels attacks seem to have You write, “Mr. Cruz will also have TOM BUDDS Brussels’s confusing under- made no dent in the thinking a voice in deciding the nominee.” Par- Huntington Beach, Calif. ground tunnels. Or board a Sa- for European jihad. of privacy fanatics. “Reflex- don me, but he may have more Re- bena jet, only to learn that the ively demanding for measures publican votes than Donald Trump Your recent editorials encouraging bankrupt national carrier had of mass surveillance does not and surely more than John Kasich. Gov. Kasich to remain in the fight grounded all flights. prevent such attacks,” Jan Philipp Albrecht, a Mr. Trump says his candidacy is might have merit if delegates were The joke worked because Belgium’s dysfunc- member of the Parliament’s Civil Liberties the “biggest political story in the strictly allocated proportional to tions were legendary. Today the dysfunctions committee, said this week. world” and that he is broadening the their percentage of votes. But they remain but the sense of security does not. Fol- Then there is Europe’s unwillingness to in- Republican tent. I haven’t seen any are not. In Illinois, for example, Mr. reports about how many of the Trump got 39% of the vote, but 79% lowing Tuesday’s jihadist attacks in Brussels, vest resources in intelligence. The French and “crossover” Democrats will be voting of the delegates awarded. If Mr. Ka- we’ve learned that one of the bombers, Ibrahim British have relatively robust capabilities, but for Mr. Trump in the general election. sich were to drop out, a majority of el-Bakraoui, had been arrested last year by Germany only recently overcame its post-Ed- Until proven otherwise, I believe his voters would support Ted Cruz. Turkish police near the Syrian border on suspi- ward Snowden fit about the U.S. National Secu- most of these “crossovers” will vote Until he does, a vote for Mr. Kasich is cion of belonging to Islamic State. He was de- rity Agency by resuming intelligence sharing for Hillary Clinton in the general elec- avoteforMr.Trump. ported to the Netherlands but freed because with the U.S. after an eight-month break. tion, and that they are merely choos- GARY LAWRENCE “Belgium wasn’t able to make the terrorism The talk now is of breaking down “stove- ing the person most likely to lose to Santa Ana, Calif. connection,” according to Turkish President Re- pipes” currently dividing European intelligence her in November. cep Tayyip Erdogan. agencies, justice ministries and national police A majority of Republicans have Exit polls showed that Ted Cruz Another bomber, Ibrahim’s brother Khalid, to better track threats. Similar walls between consistently voted for candidates would have handily beaten Donald Trump in Michigan and Illinois in a was wanted on international and European ar- the CIA and FBI were a big reason the U.S. other than Mr. Trump. He doesn’t fare well in closed primaries. He does two-way race (to say nothing of rest warrants issued last December by a Belgian missed the 9/11 plotters, so it’s good to see that best in open primaries when so-called North Carolina and Missouri) but judge investigating November’s terrorist at- Europeans are at last alert to the breadth of the crossover Democrats vote. Too many Gov. Kasich’s presence ensured that tacks in Paris. Belgian prosecutors had said ear- Islamist threat. pundits are too quick to attribute this the lion’s share of Illinois congressio- lier that neither man had known prior links to Europe will also have to do more to surveil crossover to general public anger and nal districts went to Mr. Trump. If terrorism. heavily Muslim enclaves such as the Molenbeek Mr. Trump’s take-no-prisoners per- Gov. Kasich doesn’t exit, this process Khalid’s name was on the lease of a Brussels neighborhood where Mr. Abdeslam was able to sona. I believe too many on the right will repeat itself on June 7 in Califor- apartment where police found fingerprints of hide for four months. One current difference be- are, once again, underestimating the nia, giving Mr. Trump the vast major- Salah Abdeslam, the alleged mastermind of the tween ISIS terror in Europe and America is that cunning and ruthlessness of the left. ity of California’s congressional dis- Paris attacks, whose arrest last week may have the U.S. has so far experienced only lone-wolf We Republicans are supposed to tricts, and with it the Republican prompted the Brussels bombers to hasten their attacks, since there are few Muslim neighbor- be a conservative party standing nomination. against progressives. The Republican EZRA GREENBERG hoods in the U.S. big enough to support the ter- plans. Yet Politico quotes three sources as say- primary and Republican convention Hollywood, Fla. ing Belgian officials questioned Mr. Abdeslam ror cells that have hit Paris and Brussels. But for only an hour after he was captured. that could change. All of this has caused a political storm in Bel- iii gium, considering that the Paris attacks made Events in Europe should also remind the U.S. More on That Study of Bayou Charter Schools clear that Brussels was ground zero for Euro- Congress of its mistake last year in replacing Regarding your March 19 editorial Our data-sharing agreement only pean jihad. “If you put all things in a row, you the Patriot Act with the weaker Freedom Act. “Back to Bad Schools in the Bayou” provided enough data to evaluate the can ask yourself major questions” about the Ted Cruz is now leading the charge in the wake which references a National Bureau of program’s first-year effects following government’s decisions, admitted Belgian Inte- of Brussels to “patrol and secure Muslim neigh- Economic Research study that my col- statewide expansion. Throughout our rior Minister Jan Jambon, whose offer to resign borhoods before they become radicalized.” But leagues Atila Abdulkadiroglu, Christo- interactions with the LDE, we ex- this week was turned down by Prime Minister the point of the Patriot Act was to give law en- pher Walters and I authored on the pressed a strong willingness to look at Louisiana Scholarship Program: We additional data, but we were denied Charles Michel. forcement adequate tools to identify terror sus- vehemently object to your accusation access. We remain eager to analyze The latest attacks also raise questions about pects and prevent attacks without having to that we refused to check out more re- data beyond the first year and would Europe’s broader approach to security. Belgium “secure” entire neighborhoods. cent data and your allegation of “re- have already done so if the LDE had was widely mocked after the Paris attacks when Any country can be hit, and probably will be, search malpractice.” not refused to provide it. Since our it turned out that a law forbidding police raids by the spreading jihadist contagion of Islamic Our research was conducted with study was released, another research between 9 p.m. and 5 a.m. may have allowed State. But the minimum requirement for public the full cooperation of the Louisiana team has replicated our findings for one of the attackers to escape a police dragnet. safety is to treat terrorism as a systemic na- Department of Education (LDE). We the Louisiana Scholarship Program The law is finally on its way to the dustbin, but tional-security threat that requires the full ar- have no agenda for or against choice, and has shown that our negative re- what really needs to go is the mentality that ray of intelligence, surveillance and interroga- and our work employs a gold-standard sults persist into the second year. PARAG PATHAK spawned it. tion tools to prevent attacks. Europe is now lottery-based research design that cannot be manipulated. In other work, MIT and NBER Take passenger name records, or PNR, a relearning that lesson, and let’s hope the U.S. we have found that recent charter Cambridge, Mass. plan to collect personal data for any airline doesn’t have to as well. school takeovers in New Orleans boost student achievement. We have also Using a union to fight education for found negative results for suburban poor, disadvantaged children is the ul- Chicago Pension Nightmare charters in Massachusetts, and posi- timate in bullying. tive results for Boston’s charter TED HAMMOND he hits keep coming for Chicago Mayor us all? Put us all in jail? There’s not 27,000 schools. Augusta, Ga. T Rahm Emanuel. On Thursday the Illinois spaces in the Cook County Jail right now.” Ah, Supreme Court struck down the city’s she cares so deeply for the children. pension reform, which re- The ruling may be better quired city workers to chip in A court nixes reform. news for Illinois Governor Retire the Tennessee Income Tax on Retirees more to their retirement plans, Bruce Rauner, who has been Maybe the mayor Andrew Ogles’s “Tennessee’s Senior meaningful interest on investments raised the retirement age and trying to reform the state pen- Citizen Tax Is Ripe for Retirement” such as certificates of deposit. The in- cut back on cost-of-living ad- should try bankruptcy. sions amid a hostile Demo- (Cross Country, March 19) concerning terest on CDs is exempt from the tax. justments. But there may be a cratic legislature. The court the burden of the Hall Income Tax on In past years when CDs constituted a silver lining for the fiscal bas- said in its Chicago ruling that a single class of taxpayers (i.e., retired prudent element of an investment ket case known as Illinois. a reform would be constitutional if workers had Tennesseans on a fixed income) dem- portfolio, at least not all passive earn- The Illinois court said Chicago’s 2014 re- a choice to go into a modified or lower-benefit onstrates the unfairness of Gov. Bill ings were taxed. Now, however, CDs forms violate a provision of the state constitu- structure. Haslam’s attitude that he won’t try to aren’t a meaningful income-generat- tion that bans diminishing existing pension Mr. Rauner has endorsed the outline of a repeal it because he can’t afford to ing vehicle and as a result virtually benefits. This is legally debatable, but the plan created by state Senate President John lose the tax revenue it generates. 100% of a taxpayer’s interest and divi- court’s ruling wasn’t surprising since it had al- Cullerton that would let workers choose be- This unfair tax imposition has been dends are taxable by the state. In exacerbated in recent years because some instances, the Hall Income Tax ready knocked down state pension reforms tween capping their pensionable salary and col- of the demise of the ability to earn paid by a retiree equals or exceeds the signed by previous Governor Pat Quinn. lecting more generous cost-of-living increases amount of federal income tax paid. The ruling further limits Mr. Emanuel’s fiscal during retirement, or collecting slightly lower CHRIS HARRIS options as pension payments take an ever-grow- cost-of-living increases during retirement Public Release of CFS Data Brentwood, Tenn. ing share of city revenues. On Thursday the gra- based on a higher pensionable salary. cious souls at the Chicago Teachers Union an- Mr. Cullerton has since distanced himself Is Limited by Privacy Rules Those who rely on retirement sav- nounced a one-day walkout on April 1. The CTU from his own handiwork under union pressure, I am writing on behalf of the prin- ings accounts (the vast majority of to- isn’t allowed to strike until this summer, but but something will have to give or Illinois and cipal investigators of the PACE trial day’s retirees) for retirement income CTU president Karen Lewis told her members the City of Big Unfunded Pension Obligations of treatments for chronic fatigue syn- composed of mutual funds, bond in- not to worry: “What are they going to do, arrest will go broke. drome, which was first published in terest and dividends pay a flat 6% tax. 2011 and was the subject of “Patients, At the same time, those fortunate to Scientists Fight Over Research-Data have pension plans, such as our state Access” (Personal Journal, March 8). legislators and other public-sector The U.S. Senate Takes On Iran The main reason that my colleagues employees, don’t pay the 6% tax on and I have been unable to release the majority of their retirement in- he Treasury Department on Thursday Iran’s legitimate economy, including the auto- data to members of the public who come. This unfair and antiquated tax blacklisted two Iranian companies for motive, energy, construction and mining indus- ask for it is that we don’t have the should be eliminated. T STEVEN PRIDDY supporting Iran’s ballistic-missile pro- tries. Countering the missiles, the FDD says, re- consent of the trial participants to re- gram, as well as British busi- quires “economic sanctions lease their data in this way, and we Germantown, Tenn. nesses it said were helping the Republicans move against all sectors involved in are ethically bound to act in the best country’s Revolutionary to sanction Tehran for their development.” interest of our patients. Although Guards. This is good news, but The Ayotte-Kirk U.S. sanc- data can be anonymized, this doesn’t A Trade War Would Be a ballistic-missile tests. override the need for consent and it would be better if President tions are a good start, since the protection of the data. We have Losing Venture for Everyone Obama would endorse an even path to international sanctions shared data from the trial with other Regarding Holman Jenkins’s “Can tougher sanctions bill now is closed for now. Iranian nego- researchers, with proper safeguards Trump Start a Trade War?” (Business moving in the Senate. tiators succeeded in excluding limits on ballistic of the data mutually agreed. World, March 9): It is too often for- The nuclear deal with Iran is barely six missiles from the nuclear deal itself, but United We have treated patients with CFS gotten that when a foreign govern- months old, and the Islamic Republic has repeat- Nations Security Council Resolution 2231 “calls for more than 20 years. Many have ment chooses to protect or subsidize edly fired missiles intended to carry an atomic upon” Tehran not to build or test missiles for improved with cognitive-behavioral its own industries, it either hurts its warhead. The Iran Ballistic Missile Sanctions Act eight years. Iran has used that weak language as and graded-exercise therapies. While own consuming populace, which is of 2016, introduced this month by New Hamp- a legal loophole, and Russia has made clear it will these therapies don’t help everyone, forced to pay higher internal prices shire Republican Kelly Ayotte, targets firms that use its veto to stop any U.N. sanctions. they are the best available, with more or benefits consumers abroad by sell- help Tehran acquire dual-use technologies or President Obama will likely oppose the new evidence supporting their use than ing at lower than market prices. for any other treatment. If Donald Trump is elected, and if otherwise support its missile program. measures, and the timing of Treasury’s actions PETER WHITE he follows through on his protection- A parallel bill sponsored by Sen. Mark Kirk may have been aimed at heading off new Sen- Queen Mary University of London ist agenda, U.S. consumers (rich and and 15 other Republicans, including Majority ate legislation. The U.S. sanctioned 11 compa- poor alike) are in for a bruising, and Leader Mitch McConnell, targets Iran’s destabi- nies and individuals for aiding Iran’s missile as Mr. Jenkins points out, overall lizing actions in the region and human-rights vi- program after tests last year, but Iran keeps Leftist Glacier Is on a Roll world-wide trade will decline. Protec- olations at home. The bill would impose U.S. firing away. tionism is truly a lose-lose policy. sanctions on any business in which the Iranian Maryland’s Ben Cardin, the ranking Democrat Regarding the letters of March 15 JOHN M. SIRIANNI Revolutionary Guard Corps holds a 25% or larger on the Senate Foreign Relations Committee, and “Feminist Glaciers: Your Tax Dollars Eau Claire, Wis. stake, as well as the directors of such firms. The Chairman Bob Corker of Tennessee said in a at Work”: This isn’t just about the bill specifically targets Mahan Air, an Iranian joint statement last week that they’re working further perversion of science. It’s an- Letters intended for publication should passenger airline that provides logistical assis- on bipartisan sanctions. The Ayotte-Kirk mea- other example of leftist totalitarian- be addressed to: The Editor, 1211 Avenue ism. There is no speck of existence of the Americas, New York, NY 10036, tance to the Revolutionary Guards and Hezbollah sures should be the starting point. Unilateral where the left isn’t going to tell you or emailed to [email protected]. Please in Syria, according to the U.S. Treasury. U.S. sanctions are a weak substitute for binding what you must believe—even about include your city and state. All letters As the Foundation for Defense of Democra- international sanctions. But the effort sends a glaciers. are subject to editing, and unpublished cies notes in a recent report, Tehran’s ballistic- message that the nuclear deal isn’t a license for TOM SPARKS letters can be neither acknowledged nor returned. missile program is deeply intertwined with Iran’s regional imperialism. Wilmette, Ill. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, March 25, 2016 | A11 OPINION

IraqIsn’tLosttoIran For This

By Zalmay Khalilzad disarmament, demobiliza- 6-Year-Old, tion and reintegration. Once he conventional wisdom ISIS is defeated, Iraq must in Washington, D.C., reverse the militarization of The Law Sees seems to be that Iraq is society made necessary by T hopelessly lost to Iran. its onslaught. The best that the U.S. can • Facilitate progress to- Only Race do, this view suggests, is to destroy ward a new political com- Islamic State there and develop a pact. I gleaned from my By Aditya Dynar special relationship with an inde- conversations that some And Timothy Sandefur pendent or semi-independent Iraqi Shiite leaders were open to Kurdistan. normalizing relations with t is hard to imagine the anguish Washington should do those Sunni Arabs, as well as hav- I that Rusty and Summer Page things. But it also should not aban- ing a candid conversation must be experiencing. Their 6- don the rest of Iraq. Based on re- with their Kurdish counter- year-old daughter Lexi, whom they cent meetings in Baghdad with Iraqi parts about the future of had raised since taking her in as a leaders, including Prime Minister the country. The U.S. can do foster child four years ago, was Haider al-Abadi, I believe that the more to catalyze agree- wrenched away Monday and sent country is not lost. ments, which may include from her home in Santa Clarita, It’s true that Iran has consider- allowing Sunni-majority Calif., to live with another family able influence in Iraq. The total provinces to exercise a con- hundreds of miles away in Utah—

withdrawal of U.S. forces in 2011 AHMAD AL-RUBAYE/AFP/GETTY IMAGES stitutional right to establish solely because of Lexi’s race. created a vacuum that Iran and its Iraqi Shiite militia fighters outside Samarra, March 2. federal regions. Most Iraqi You read that right. Lexi is 1.5% regional rivals tried to fill, pulling leaders prefer mediation by Choctaw. A 40-year-old federal law the country apart. The disintegra- from being ISIS-free today. the spiritual leader of Iraqi Shiites, the American honest broker, not the called the Indian Child Welfare Act tion of the Iraqi army and the rise Second, Iraqi leaders fear that and the prime minister. I even met Iranian bully. requires government officials to take of Shiite militias to combat Islamic the militias will outlive their useful a few who are hostile to Iran and • Encourage economic reform.As children away from caring foster State, also known as ISIS, increased role against ISIS and become par- very friendly to the U.S. a start, urge that the International families and place them with Native Iranian influence further. Yet many ties to, or instruments in, a Shiite To make the most of this oppor- Monetary Fund standby agreement American families they may never Iraqi Shiite leaders are growing dis- civil war. Some of the more extreme tunity for increased U.S.-Iraq rela- be finalized—including the release have even met. Simply because Lexi illusioned with Iran and want to leaders, like Moqtada al-Sadr, are tions, here are a few things that of IMF funds and their balanced has a distant Native American ances- strengthen ties with the U.S. trying to ride on the wave of popu- Washington should do: distribution in Iraq. America should tor, a Choctaw great-great-great- lar dissatisfaction with poor gover- • Assist in restoring the military help Baghdad get through the severe great grandparent on her father’s nance and the slow pace of reform balance in favor of Iraqi national economic crisis caused by a long war side, she was taken from the Pages, The ISIS onslaught has in Baghdad. Tensions among Iraqi security forces. Support from the and declining oil prices. In particu- who want to adopt her but aren’t Shiite groups are overall on the rise, U.S. and its allies has already helped lar, the U.S. could help Iraq meet Indian. State and tribal authorities convinced many Iraqis as are the risks of a direct confron- the Iraqi army regain some of the the requirements set by the IMF sent her from California to live with of the need for better tation and violent clashes between strength and respect it lost when and others to gain access to addi- a couple in Utah instead. Mr. Sadr and the Iraqi government. ISIS took Mosul in 2014. Success in tional resources. relations with the U.S. The resurgent threat he poses is an Ramadi last December is a good Iraq is decidedly not lost to added reason for many Shiite lead- example. America must sustain and Iran—and today U.S. leverage is at a Lexi, who is 1.5% Choctaw, ers to look for more U.S. support. expand efforts to professionalize new post-withdrawal high. Washing- First, although Iran’s security Third, there is strong resentment the national army, which means ton has an opportunity to rebuild was taken from loving support was useful in halting the over Iranian heavy-handedness and Washington needs to be prepared to influence if it takes the right steps. parents because they initial advance of ISIS, it has been disrespect for Iraqi sovereignty. I maintain sufficient presence over a The Iraqis want to pursue a bal- insufficient to retake major territory. heard complaints that Qasim Sulei- long relationship. anced regional policy but they need didn’t share her ancestry. The limited effectiveness was evi- mani, commander of Iran’s Quds • Carefully assess plans for Mosul. assurances, as they navigate the dent in the stalled offensive to re- Force, attends classified security President Obama would like the city tricky waters of regional sectarian cover Tikrit and the militias’ failure meetings in Baghdad without a visa to be liberated before he leaves rivalries, that America has their The Goldwater Institute, where to hold Baiji on their own. In both or announcement. In November, office—perhaps fearing that his back. Strong support exists—among we work, has filed a civil-rights law- cases it was American advice and Iran sent half a million people, not legacy might suffer from handing his Sunnis, Shiites and Kurds—for a re- suit, Carter v. Washburn, challenging focused U.S. air power that allowed all of them innocent pilgrims, across successor a problem in the Middle newed relationship with the U.S. It the unconstitutional discrimination the Iraqis to achieve their objectives the border without proper docu- East worse than the one he inher- would be a mistake for Washington at the heart of the Indian Child last spring and summer. ments. ited. But to make military victory in not to reciprocate. Welfare Act. The law makes it In the eastern province of Diyala, There are hard-line Iraqi Shi- Mosul and other Sunni Arab cities harder to protect children with deadly ISIS attacks are continual re- ites—like Mr. Sadr and several pro- permanent there needs to be a delib- Mr. Khalilzad is a former U.S. Indian heritage, no matter how minders of the cost of putting Iran’s Iranian militia groups, such as the erate plan to manage post-liberation ambassador to Afghanistan, Iraq slight, from abuse and find them proxies in charge of a battleground. Asiaeb Al Haq—who want no or reconstruction and settle governance and the United Nations, and the permanent and loving adoptive In January the Iranian-backed Shiite minimal relations with the U.S. But questions. author of “The Envoy: From Kabul homes. It’s mind-boggling that this militias of the Badr Organization a majority, in my view, want good • Help demilitarize. The U.S. to the White House, My Journey federal law enshrines rules of “sepa- claimed victory in the province relations with both Iran and Amer- should help the Iraqis design and Through a Turbulent World,” just rate but equal”—actually, separate without U.S. support, but it is far ica. These include Ayatollah Sistani, implement a program for militia out from St. Martin’s Press. and substandard—for one racial group. But that’s what it does. Normally, adoption law tries to serve the best interests of the child. Why Restaurant Automation Is on the Menu But the Indian Child Welfare Act forces courts to disregard that rule By Andy Puzder tomers to order and pay their bill The other reason is costs. While Eatsa is a digital upgrade of the and place children, regardless of without ever talking to a waiter. the technology is becoming much automat restaurants that had a their individual needs, with mem- onsumer preferences, reduced The companies were soon followed cheaper, government mandates long run of popularity in many U.S. bers of Native American tribes— C technology costs and govern- by Buffalo Wild Wings, Panera have been making labor much more cities beginning about a century even ones who have no connection ment policies that increase Bread, Olive Garden and dozens of expensive. ago. Based on my visit to the Eatsa to the children. Only in rare cases labor costs are driving a trend others. This means fewer servers In 2015, 14 cities and states ap- restaurant in San Francisco—there may judges place a child like Lexi toward automation in the restau- covering more tables. Quick-service proved $15 minimum wages—dou- is another in Los Angeles—it has a with a family that may be white or rant business. If you make some- restaurant chains are also testing ble the current federal minimum. modern and clean feel, and a black or Asian or Hispanic. thing more convenient and less touch-screen ordering. Additionally, four states, 20 cities strong millennial customer base The Indian Child Welfare Act expensive, it tends to catch on. and one county now have manda- that is responding well to the res- was written out of a concern that As recently as the 1960s, gas- tory paid-sick-leave laws generally taurant with the slogan “Better, state courts were breaking up station employees would rush to Forget about robot waiters, requiring a paid week of time off Faster Food.” tribes by sending Native American fill your car’s tank, wash the win- each year per covered employee. It isn’t a coincidence that this children to live off-reservation. But dows, check the oil and put air in but technology helps cut And then there’s the Affordable concept arose in San Francisco, four decades later, it penalizes the tires. Telephone operators government-imposed costs. Care Act, which further raises which for years has had one of the Indian children by subjecting them made your long-distance calls and employer costs. country’s highest minimum wages to different and less favorable rules bank tellers cashed your checks. And consumers like it. Dramatic increases in labor costs and some of the nation’s most busi- than other children. For instance, Those jobs now are either gone or have a significant effect on the res- ness-burdening labor regulations. child-protection authorities can greatly diminished. taurant industry, where profit mar- The result: Since the recession quickly take custody if they find Today, we reduce jobs whenever But technology at the counter gins are pennies on the dollar and ended, median family income in evidence of abuse. But under this we shop on Amazon instead of our poses challenges. Some guests find labor makes up about a third of San Francisco has increased to law, before taking custody of Indian local retail outlet, use an Uber app it impersonal or confusing. Cus- total expenses. As a result, restau- about $78,000 from $70,000, but children the officials must provide rather than calling a cab dis- tomer service is still very impor- rants are looking to reduce costs the poverty rate increased to 13.3% far more proof of abuse—which patcher, order a pizza online, use tant and, for now, having access to while maintaining service and food from 11.5%. So some in San Fran- makes it harder to protect them an airport kiosk to print boarding a person is important to assure quality. cisco are making more money, but from mistreatment. passes, or scan groceries. Each of smooth experiences for everyone. Highly automated models have more people are living in poverty. Worse, the law gives tribes the these changes in behavior has Increased automation also makes it limited applicability for restaurants Why? power to intervene in any foster- increased convenience and reduced more difficult to build a company with more complex menus. For Part of the problem is that those care or adoption proceeding nation- labor costs—and competitive busi- culture. There are maintenance example, at CKE Restaurants, the with technical skills make good liv- wide that involves a child of Indian nesses pass the savings to their costs, and the business has to hire company I lead, our Carl’s Jr. and ings, while those who don’t have heritage. That’s why Lexi can have customers. IT professionals to service the Hardee’s employees make biscuits those skills are being priced out of her fate determined by the Choctaw In the restaurant business, the technology. The technology can from scratch. They bread chicken entry-level jobs. Nation in Oklahoma, a state she has increasing impact of technology malfunction, spoiling a patron’s tenders by hand, prepare complex The low-labor Eatsa concept may never visited. The Multiethnic Place- doesn’t mean that a robot will soon visit. burger orders, hand-scoop the ice be a harbinger of the future. If con- ment Act makes it illegal to delay or roll up to your table and say, “Hi, So why the increased use of cream for milkshakes, and the res- sumers prefer it, or if government- deny adoption for racial reasons. But I’m Trudi4783. I’ll be your auto- technology? The major reason is taurants offer table service. None mandated labor-cost increases the Indian Child Welfare Act opens a mated server today.” But technol- consumer preference. Research of these tasks can be effectively drive prices too high, the tradi- loophole for Native American chil- ogy can replace certain functions. shows that many appreciate the automated, and we wouldn’t want tional full-service restaurant model, dren, who are explicitly denied that Touch screens are already trans- speed, order accuracy, and conve- them to be. like those old gas stations with the protection. forming the way food is ordered in nience of touch screens. This is par- But a new restaurant chain employees swarming over your car, Supporters of the legislation many restaurants. ticularly so among millennials who called Eatsa has almost completely could well become a thing of the claim that children are better off In late 2013, Chili’s and Ap- already do so much on smartphones automated food service, from past. being raised in their “native” cul- plebee’s announced that they were and tablets. I’ve watched people— ordering to handoff (back-of-the- ture. But the Constitution entitles installing more than 100,000 table- young and old—waiting in line to house employees to prepare the Mr. Puzder is the chief executive American citizens (and all Indian side tablets at their restaurants use the touch screens while employ- food). It’s not really a new idea— officer of CKE Restaurants. children are citizens) to equal treat- across the country, allowing cus- ees stand idle at the counter. ment under the law. Valuable as a cultural heritage might be, it is wrong for the government to deny Notable & Quotable: Paul Ryan them the legal protections accorded PUBLISHED SINCE 1889 BY DOW JONES & COMPANY to all other children—including the From House Speaker Paul Ryan’s ideas forward—no matter the con- right to have their cases decided on Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp remarks about the state of Ameri- sequences. With so much at stake, their individual circumstances in- Gerard Baker William Lewis can politics, as prepared for deliv- the American people deserve a stead of their ethnicity. Editor in Chief Chief Executive Officer and Publisher ery in Washington, D.C., to a group clear picture of what we believe. In Brown v. Board of Education, of congressional interns, March 23: Personalities come and go, but Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT: the Supreme Court ruled that Deputy Editors in Chief Ashley Huston, Chief Communications Officer; principles endure. Ideas endure, creating a separate and substan- DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; Governing ourselves was never ready to inspire generations yet to dard system for children of one Michael W. Miller, Senior Deputy; Mark Musgrave, Chief People Officer; meant to be easy. This has always be born. Edward Roussel, Chief Innovation Officer; race is repugnant to America’s Thorold Barker, Europe; Paul Beckett, Asia; been a tough business. And when That’s the thing about politics. Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; highest law. Fifty years later, it is Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer passions flare, ugliness is some- We think of it in terms of this vote unacceptable that children like News; Ann Podd, Initiatives; Andrew Regal, Video; OPERATING EXECUTIVES: times inevitable. But we shouldn’t or that election. But it can be so Lexi—and the non-Indian parents Matthew Rose, Enterprise; Stephen Wisnefski, Nancy McNeill, Corporate Sales; accept ugliness as the norm. We Professional News; Jessica Yu, Visuals much more than that. Politics can who love them—are still subjected Steve Grycuk, Customer Service; should demand better from our- be a battle of ideas, not insults. It to disfavored treatment based on Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International; Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: selves and from one another. We can be about solutions. It can be their ancestry. WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, should think about the great lead- about making a difference. It can Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; ers that have bestowed upon us be about always striving to do Mr. Dynar is an attorney with the Professional Information Business: Chris Collins, Advertising; Jason P. Conti, Legal; the opportunity to live the Ameri- Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; better. That’s what it can be and Goldwater Institute and represents Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head can Idea. We should honor their what it should be. This is the sys- the plaintiffs in Carter v. Washburn. Larry L. Hoffman, Production legacy. We should build that more tem our Founders envisioned. It’s Mr. Sandefur is the institute’s vice

EDITORIAL AND CORPORATE HEADQUARTERS: confident America.... messy. It’s complicated. It’s infuri- president of litigation and the author 1211 Avenue of the Americas, New York, N.Y., 10036 As leaders, [House Republicans] ating at times. And it’s a beautiful of “The Conscience of the Constitu- Telephone 1-800-DOWJONES have an obligation to put our best thing too. tion” (Cato Institute, 2014). For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A12 | Friday, March 25, 2016 ** THE WALL STREET JOURNAL. WORLD NEWS Bosnian Serb Convicted of Genocide In Holy

Hague tribunal gives Rite, Pope 40-year sentence to Radovan Karadzic, who Welcomes led breakaway state Migrants BY VALENTINA POP Associated Press

A United Nations court sen- CASTELNUOVO DI PORTO, tenced former Bosnian Serb Italy—Pope Francis washed leader Radovan Karadzic to 40 and kissed the feet of Muslim, years in prison for genocide, Christian and Hindu refugees crimes against humanity and Thursday and declared them war crimes during the Bosnian all children of the same God, war in the 1990s. He will ap- as he performed a gesture of peal the ruling. welcome and brotherhood at a The International Criminal time of increased anti-Muslim Tribunal for the former Yugo- sentiment following the Brus- slavia on Thursday found Mr. sels attacks. Karadzic guilty of 10 of the 11 Pope Francis, in a Holy Week counts, including genocide for Mass with asylum-seekers at a the Srebrenica massacre and shelter here outside Rome, de- criminal responsibility for the nounced the Brussels attackers, shelling of Sarajevo, during a saying they wanted to destroy nearly four-year siege on the the brotherhood of humanity city. He is the highest-ranking represented by the migrants. official the court has convicted The Holy Thursday rite re- since its creation in 1993. enacts the foot-washing ritual “These are among the most Jesus performed on his apos- egregious of crimes in interna- tles before being crucified, tional criminal law and include and is meant as a gesture of extermination as a crime service.

against humanity and geno- AMEL EMRIC/ASSOCIATED PRESS “We have different cultures cide,” said Judge O-Gon Kwon Women whose family members were killed in the Srebrenica massacre reacted in Tuzla, Bosnia, on Thursday to Mr. Karadzic’s conviction. and religions, but we are who read the sentence in The brothers and we want to live Hague. it,” Mr. Kwon said. forces] conducted this to ter- the 1992-95 conflict in Bosnia to rape and sexual violence. in peace,” Francis said in his Mr. Karadzic was convicted The 70-year-old former psy- rorize civilians,” he said. alone, according to estimates Others were used as forced la- homily, delivered in the windy of genocide for his role in the chiatrist was also found guilty In a statement accompany- of the U.N. tribunal. bor or as human shields for courtyard of the center. execution of more than 8,000 of crimes against humanity ing the verdict, the tribunal Mr. Karadzic was found Serb forces, he said. Several migrants wept as Muslim men and boys in Sre- and war crimes in connection said Mr. Karadzic “was at the guilty of crimes against hu- Peter Robinson, a lawyer Francis knelt before them, brenica in July 1995, in what to the siege of Sarajevo be- forefront of developing the manity—but not of genocide— who helped Mr. Karadzic’s de- poured holy water from a brass has been called the worst case tween May 1992 and October ideology and policies which against Bosnian Muslims and fense, said the former Bosnian pitcher over their feet, wiped of mass murder in Europe 1995, the longest in modern led to the creation of a largely Bosnian Croats in several Serb leader would appeal. them clean and kissed them. since World War II. European history. ethnically homogeneous Bos- other towns and villages. The “Victims and their families Pope Francis in January “The chamber finds that Mr. Kwon said Mr. Karadzic nian Serb state through the victims were forcibly de- have waited for over two de- changed Vatican rules for the the accused shared the ex- was criminally responsible for commission of crimes.” ported, had their properties cades to see Karadzic’s day of foot-washing to explicitly al- tended common purpose of the operation that deliberately The wars in the territory of seized, were detained in inhu- reckoning,” said Param-Preet low women and girls to partic- killing the Bosnian Muslim shelled and sniped at civilians the former Yugoslavia lasted mane conditions, beaten and Singh, senior international jus- ipate. The Vatican said Thurs- males of Srebrenica and that in Sarajevo. “The chamber is from 1991 to 2001. More than sometimes killed, the judge tice counsel at Human Rights day that four women and eight he significantly contributed to convinced that the [Serb 100,000 people were killed in said, and some were subjected Watch. men took part. Obama Honors Victims of Argentine Junta World Watch BY RYAN DUBE AND TAOS TURNER after the coup, made human rights a pillar of its foreign BUENOS AIRES—President policy and applied economic Barack Obama pledged sup- sanctions against Argentina port for victims of Argentina’s over its abuses. military dictatorship by de- During his speech Thurs- HONG KONG classifying documents that day, Mr. Obama praised activ- many here hope will shine a ists, journalists and former Missing Book Editor light on abuses committed U.S. diplomats in Buenos Ai- Returns From China during the country’s so-called res who “documented and de- A book editor whose nearly Dirty War. scribed many incidents of hu- three-month disappearance rat- Mr. Obama—standing be- man-rights violations.” tled Hong Kong returned home side his Argentine counter- Magdalena Ruiz Guiñazú, a from the Chinese mainland part, Mauricio Macri—made a 78-year-old Argentine journal- Thursday, the police said. passionate defense of human ist who served on a national Lee Bo met with officers rights at a riverside memorial commission investigating dis- upon his return but didn’t pro- on Thursday, 40 years to the appearances, said Mr. vide thorough information about day after the coup that Obama’s speech was impor- his undocumented departure brought a brutal junta to tant for Argentina, which still from the island, a statement power at the height of the has deep scars from that era. said. He said he went voluntarily Cold War. He said the U.S. has “I have no reason to doubt to assist in a case against a col- to examine the stance it took Obama’s transparency and au- league and wasn’t abducted. in that regime’s early days. thenticity when he speaks Mr. Lee was one of five Hong "There has been contro- about the disappeared and Kong-based men associated with versy about the policies of the DAVID FERNANDEZ/ZUMA PRESS what happened here. It was a publishing house that pro- United States early in those Messrs. Obama and Macri paid tribute Thursday in Buenos Aires to those killed by the dictatorship. very important for him to say duced works about China’s Com- dark days, and the United what he did,” she said. munist leadership that were States has to examine its own Obama added. declassified more than 4,000 with the junta’s foreign minis- But some human-rights ad- banned on the mainland. Three policies as well and its own Mr. Macri, who had asked documents from the Dirty ter, he said “we want you to vocates in Argentina have of Mr. Lee’s colleagues are free past,” he said during his visit the U.S. to declassify the doc- War period. The documents succeed,” according to a pub- been critical of Mr. Obama’s on bail in the mainland, but one to Remembrance Park, a me- uments, said Mr. Obama’s underscore the divide among lished copy of the transcript, visit on the coup anniversary, appears to be still detained. morial next to the River Plate, visit on the coup anniversary some U.S. officials about how despite earlier reports from seeing it as a provocation. —Associated Press into which the military was a chance for Argentines to respond to the military re- his advisers about human- They marched on Thursday to dropped drugged victims from to say “never again in Argen- gime, which ruled Argentina rights abuses. Mr. Kissinger commemorate the anniversary NEW ZEALAND airplanes. tina to political violence, from 1976 to 1983. didn’t respond to requests to and protest what they see as "Democracies have to have never again to institutional At the center of the contro- comment. U.S. support for the junta. Voters Reject Flag the courage to acknowledge violence.” versy is former U.S. Secretary Other U.S. officials helped Mr. Obama left Buenos Ai- Showing Native Fern when we don’t live up to the He added that “today we of State Henry Kissinger, who support victims of the dicta- res for the Patagonia resort of Voters chose to retain the ideals that we stand for, when need to reaffirm our commit- met with top officials from torship by pressuring the Bariloche with his family be- country’s current flag in a refer- we’ve been slow to speak up ment to democracy and hu- Argentina’s military regime junta to free some individuals. fore the march began. endum Thursday, rejecting a for human rights, and that man rights.” shortly after the coup on The Carter administration, —Alberto Messer new design that had the support was the case here,” Mr. The State Department has March 24, 1976. In a meeting which took office nine months contributed to this article. of Prime Minister John Key, according to early results. The figures show 56.6% fa- vored keeping a flag with four Malaysia Pushes to Extend Penal Use of Caning red stars on a blue background and Britain’s Union Jack in the corner, while only 43.2% wanted BY CELINE FERNANDEZ or classified. The government reduces transparency in gov- jib’s government has taken a new design of a silver fern has said it suspects secret ernment dealings. measures to limit public scru- with the four red stars. KUALA LUMPUR, Malay- documents related to the in- “It’s a sad day for us when tiny of the fund. His ruling Mr. Key in 2014 proposed sia—A push by Malaysia’s top vestment fund were leaked. we become enemies that need party last month suspended a changing the flag to better rep- law-enforcement official to use Attorney General Mohamed to be punished for keeping the deputy president who had resent a country more linked to a British colonial-era punish- Apandi Ali wants to expand the government honest and ac- called to step up inquiries into Asia than to its former colonial ment on people who reveal act to raise the penalties for countable,” said Jahabar the fund, saying the deputy rulers. Many New Zealanders state secrets is dividing the breaking secrecy laws to life Sadiq, former editor of the failed to assist Mr. Najib, the wanted the indigenous silver government and sparking con- imprisonment, versus the cur- Malaysian Insider news site. party president. fern to appear on a black back- cerns in civil society. rent one-to-seven years in Mr. Najib has come under Malaysia’s auditor general ground, but that design is trade- Malaysia already administers prison, and to cover journalists intense political pressure since this month invoked the Official marked by the New Zealand the punishment—caning—to and editors who decline to dis- The Wall Street Journal re- Secrets Act for a report about Rugby Union. —Kate Geenty thousands of people a year who close sources. But another of ported last year that govern- the fund before it was submit- are convicted of crimes such as his proposals, to include caning ment investigators had found ted to a parliamentary panel, CHINA drug trafficking, rape, robbery as an additional punishment, hundreds of millions of dollars whose chief said the move was Government to Cut and firearms possession. Hu- has drawn the most scrutiny. EUROPEAN PRESSPHOTO AGENCY had entered his personal bank intended to deter any leaks. man-rights groups and others Caning people for leaking Attorney General Mohamed accounts via banks, companies Meanwhile, the media regu- Business Taxes deplore the practice, in which state secrets is “heavy-handed Apandi Ali seeks more caning. and other entities linked to lator sometimes blocks web- Premier Li Keqiang said Bei- prisoners are whipped with a and nothing short of bar- 1MDB. The investigation didn’t sites of news groups that re- jing will reduce the tax burden rattan stick, as inhumane. The baric,” said Wong Chen, an op- leaking official secrets is very name the origination of the port on the fund scandal, on Chinese companies to spur government says it reduces re- position Parliament member. serious offense. In China for funds or say what happened to including the Malaysian In- dynamism and help the econ- cidivism, without providing Any change to the law instance, one could be sen- the money. sider and the Sarawak Report, omy’s shift toward consumption supporting statistics. would require approval of Par- tenced to death.” He added: Mr. Najib, 62 years old, has saying they published unveri- and services. Now, as Prime Minister Na- liament, which on Monday will “We might prosecute journal- denied wrongdoing or taking fied information that risks In a speech at the Boao Fo- jib Razak’s administration begin a brief period of ad- ists who refuse to disclose money for personal gain. The confusing the public. Both rum for Asia, China’s answer to tries to contain a graft scandal dressing new bills and amend- their sources.…Rights to infor- 1MDB fund also has denied deny the allegation. the Davos World Economic Fo- at a state investment fund, his ments. Mr. Najib’s cabinet is mation is not a right pre- wrongdoing, and has said it is Caning was introduced to rum, Mr. Li said the government attorney general is proposing divided over whether to adopt scribed under the constitu- cooperating with investiga- Malaysia as judicial corporal will push ahead with tax cuts, to also use caning on people the recommendations, a cabi- tion.” tions. Malaysia’s attorney gen- punishment by the British co- with a focus on helping promis- found guilty of violating Ma- net member said. Some say the proposal eral said the funds were a le- lonial authorities in the 19th ing service industries. laysia’s Official Secrets Act. Mr. Apandi, in explaining alone risks having a chilling gal political donation from century. The practice remains He said such tax cuts will Under the act, officials can de- his proposal to the Sin Chew effect on civil society and that Saudi Arabia and that most of a part of the penal system in amount to 500 billion yuan clare any document or infor- Daily newspaper last month, the secrets act, even in its cur- the money was returned. Malaysia, as it does in Singa- ($76.8 billion) this year. mation to be secret, restricted said: “In certain countries, rent form, stifles dissent and In recent months, Mr. Na- pore and Brunei. —Mark Magnier 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 A14, A15, A16 | FEEDBACK FRIDAY A16 | ARTS & ENTERTAINMENT A17 | SPORTS A18

What Readers Power Performances Are Thinking Arab women make their voices heard ARTS | A17 FEEDBACK FRIDAY | A16

WSJ.com/NY **** THE WALL STREET JOURNAL. Friday, March 25, 2016 | A13 Port Board Signs Off on Major Projects

Compromises made Newark Liberty International New York Gov. Andrew At points, the commission- Airport. Cuomo, questioned the ers flashed frustration as they on new bus terminal, The agency also committed agency’s commitment to in- debated how much the vari- overhauls at airports; to replacing the 1950s-era Port clude the Manhattan bus-ter- ous projects cost. Authority Bus Terminal in minal replacement in its capi- Officials disagreed on officials trade barbs midtown Manhattan, rejecting tal plan, citing a high-end whether La Guardia’s overhaul a suggestion by some New cost estimate of $15 billion. was best characterized as a BY ANDREW TANGEL York officials to build a facility “Are we really going to $4 billion project to replace in New Jersey. It remained un- crowd out $15 billion of exist- the airport’s Terminal B and The Port Authority of New clear precisely where the new ing spending?” Mr. Foye said. add a new central hall. Or if it York and New Jersey advanced terminal would be built on the The agency’s chairman, was more accurately de- several major projects—in- West Side. John Degnan, an appointee of scribed as a $5.3 billion rede- cluding renovations at two While the commissioners New Jersey Gov. Chris Chris- velopment, counting earlier area airports—as the agency’s brokered compromises on tie, snapped back, saying Mr. projects stretching back to mounting tensions burst into many significant projects, the Foye was “out of order.” 2004 and other costs. the public spotlight at raucous meeting was marked by feisty “I know you don’t agree The agency’s New York meetings Thursday. public sparring. Officials with it, but you don’t get a commissioners squabbled Commissioners at the bi- clashed repeatedly and, at vote here,” Mr. Degnan said. among themselves. One of state agency approved the times, bitterly. “The motion has passed. Please see TRANSIT page A16 next steps for overhauling La At one point, Patrick Foye, There’s not time for a public

ADRIENNE GRUNWALDGuardia FOR THE WALL STREET JOURNAL Airport in Queens the Port Authority’s executive comment here—keep it to ‘Integrity monitor’ OK’d for La Port Authority Chairman John Degnan at the agency’s offices. and an aging Terminal A at director and an appointee of yourself.” Guardia project ...... A16 Doctor Charged Recovery Mission in the Hudson River With Violating Female Patients

BY THOMAS MACMILLAN “In this case, Dr. Newman abused that privilege, preying An emergency-room physi- upon vulnerable, young and cian pleaded not guilty Thurs- minority women,” Ms. Kim day to charges that he sexually said. abused young women who In January, Dr. Newman sought care at Mount Sinai treated a 29-year-old woman Hospital on Manhattan’s Upper complaining of shoulder pain. East Side. Ms. Kim said the doctor David Newman, 45 years touched the woman’s breasts old, faces one count of sexual and then gave her an extra abuse in the first degree and shot of morphine. four counts of sexual abuse in When the woman was phys- the third degree. ically helpless, “Dr. Newman Dr. Newman allegedly masturbated at her bedside drugged one woman and mas- and ejaculated on her face,” turbated in front of her, ejacu- Ms. Kim said. lating on her face, authorities Police found sperm on the said. He is also accused of fon- woman’s eye and DNA on her dling the breasts of three face that matched Dr. New- other female patients. man’s, Ms. Kim said. According to court documents, Dr. Newman told a de- David Newman, tective a week before his ar- who denies rest that he had masturbated the allegations, in a hospital lounge before has written treating the woman. about the “The ejaculate may have

doctor-patient gone from my hands to the SETH WENIG/ASSOCIATED PRESS relationship. woman’s blanket,” Dr. Newman SAD DAY: The tugboat Specialist, which sank March 12 after hitting a stationary barge, was raised from the water under the Tappan said, according to the docu- Zee Bridge Thursday. Three crew members died. The final body, that of 56-year-old Harry Hernandez, was found inside the boat. A14 ments. “Semen may have also “Dr. Newman obviously de- transferred from my hand to nies all of these allegations,” her face during the time I said his attorney, Susan treated her.” Necheles, at a hearing in state In the interview, according Frick Moves Ahead With Expansion Supreme Court. to the documents, Dr. Newman A Mount Sinai spokes- suggested the woman may be woman said Dr. Newman is mistaken because she was on BY PIA CATTON tion is expected later this year, the Frick dropped its plan. of Page’s work in New York, “no longer employed” by the morphine. He said he gave her with designs following in 2017. “We heard everyone. We lis- according to Simeon Bankoff, hospital. a second dose of the drug, This time, the garden stays. The return to the drawing tened, and we have decided executive director of the His- Before his Jan. 19 arrest, Dr. saying there was “some confu- After controversy over a board comes after a controver- not to build on the garden toric Districts Council, which Newman was a physician, sion amongst the nurses re- prized green space felled its sial expansion plan, announced site,” said Ian Wardropper, di- advocates for the city’s his- medical school instructor and garding the morphine.” most recent building plan last in 2014, was scrapped last June. rector of the Frick. “What that toric neighborhoods. director of clinical research at “I can’t believe this is hap- year, the Frick Collection is re- The proposal, which would means is we have to go back “The garden is an important Mount Sinai. He wrote a book pening. My explanation newing expansion efforts, have destroyed an intimate and look at alternatives.” piece of late-20th-century land- about the doctor-patient rela- doesn’t make sense. Is she al- seeking an architecture firm to viewing garden created by The Frick was first opened scape design by an acknowl- tionship, “Hippocrates’ leging that I raped her?” he craft an upgrade that leaves British landscape designer Rus- to the public in 1935, after the edged master of the form,” he Shadow: Secrets from the said, according to the docu- the garden intact. sell Page, sparked opposition deaths of Henry Clay Frick in said, adding that it should be House of Medicine,” and gave ments. “What you are saying I On Thursday, leaders of the from preservationists, civic 1919 and his wife in 1931. The considered the equal of art- a TED talk about health-care did doesn’t make sense ei- Upper East Side museum and groups, artists and architects. garden was added much later, works in the Frick’s collection. reform. ther.” library said they intend to is- High-profile design profession- in 1977, and was never in- Taking steps to expand the Assistant District Attorney An attorney for the woman sue a formal request for quali- als and local organizations tended to be accessible to the facility and keep the garden, Eun-Ha Kim said Dr. Newman declined to comment in an fications from firms with ex- joined together in an effort public, only viewed from the he said, “shows a real flexibil- violated the trust between pa- email sent after the hearing. pertise applicable to the called Unite to Save the Frick. street or from inside the mu- ity on their part.” tient and doctor. Please see DOCTOR page A14 Beaux-Arts mansion. A selec- In the wake of the criticism, seum. Still, it is a rare example Please see FRICK page A14

Atlantic City on the Brink On Central Park West, 69° Weather Real Feel TODAY’S 9 a.m. HIGH 47° Synagogue Can’t Win 5 p.m. 56° Record High BY JOSH BARBANEL delay the project’s completion. 79° (1963) The conflict raises ques- Fifty years is a long time to tions about the rights of reli- MORNING Sunrise/Sunset wait to put up a building, even gious institutions to deference SHOWERS 6:50 a.m./7:14 p.m. for a Jewish congregation that in carrying out their missions has been around since 1654, when contending with zoning Saturday’s High but Congregation Shearith Is- rules designed to preserve the 57° rael might have to wait a bit scale and qualities of the city’s longer. neighborhoods. The Orthodox congregation, Last fall, the department is- housed in a landmark neoclas- sued a “notice to revoke” N.Y. Sports Lineup sical building at Central Park threatening to withdraw the West and West 70th Street, is synagogue’s permits for not 7 p.m. Friday about to begin excavation complying with zoning rules. Capitals work next door for a nine- The notice is pending. @ Devils story community house and Meanwhile, the synagogue is condominium. trying to work out the prob- But neighborhood oppo- lem. nents, who have been fighting The buildings department 7:30 p.m. Friday the project for decades, won a based its findings on discrep- Islanders

MARK MAKELA FOR THE WALL STREET JOURNAL rare victory in a zoning appeal ancies between drawings sub- @ Lightning UNDIVIDED ATTENTION: Residents of Atlantic City pack a room in City Hall to hear Mayor Don at the city’s Department of mitted last year and earlier Guardian discuss the city’s financial problems and a possible shutdown of local government. A15 Buildings that could further Please see ZONING page A14 For N.Y. sports coverage, see A18 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A14 | Friday, March 25, 2016 **** THE WALL STREET JOURNAL. CITY NEWS City Declines To Auction Off Its TV Station BY THOMAS GRYTA Blasio’s top lawyer, Maya Wiley, AND JOSH DAWSEY noted that the city owned the license for WNYE and was The City of New York owns “contemplating the potential one of the most valuable televi- benefits of relinquishing its li- sion stations in the country, a cense in the auction.” channel worth as much as $769 A City Hall spokeswoman million in a coming auction. confirmed that the city didn’t Last year, officials said they submit an application for the were considering selling the auction but declined to com- station. But the city has de- ment further. cided not to cash out. It plans Julie Menin, who recently to keep broadcasting WNYE-TV, became commissioner of the a noncommercial channel that Mayor’s Office of Media and airs such programming as Entertainment, overseeing “Firehouse Kitchen,” a cooking WNYE, steered questions about show with local firefighters, the decision to Ms. Wiley but and “Neighborhood Slice,” a said the city is planning to add documentary series on city life. more programming to the channel this year. “If you sell it, you would The city previously never have that again,” Ms. acknowledged it was Menin said in an interview. “It’s

an important asset.” SETH WENIG/ASSOCIATED PRESS considering joining The station broadcasts on Members of Harry Hernandez’s family gathered on a pier near the site of a fatal tugboat crash as his body was recovered Thursday. the auction process. channel 25. According to its licensing filings, it has a strong signal that spans the tri-state The Federal Communications area, reaching beyond Patch- Body Recovered From Boat Commission, which is buying ogue on Long Island and up local TV stations as part of Bridgeport, Conn., and almost an effort to free up airwaves to Trenton, N.J. The station Final victim is found was pulled out of the Hudson Marine Unit and Emergency in the investigation, police said. for cellphone networks, had set went on the air in 1966, origi- River, near Tarrytown, police Services Unit took the body to The 84-foot tugboat, named an opening bid of $769 million nally as part of a Department as sunken tugboat is said. He was in a bunk room the medical examiner’s office, Specialist, hit a stationary for WNYE. The auction kicks of Education effort to provide pulled from Hudson; near the front of the vessel, police said. Workers also “de- barge early in the morning of off next week, and the potential programming for classrooms. which is where the boat hit a watered” the boat, removing March 12. It sank quickly, spill- for big payouts has lured large Ms. Menin said 500,000 peo- crash probe ongoing stationary barge on March 12, remaining fuel and polluted ing fuel into the Hudson, offi- station owners like CBS Corp. ple can be watching the chan- resulting in the deaths of Mr. water. cials said at the time. as well as several PBS stations. nel at any time, but numbers BY CORINNE RAMEY Hernandez and two other crew “I know that these last two Divers found the bodies of It is unlikely the city would are hard to verify. She said members. weeks have been a traumatic the other two tugboat crew have gotten the full amount, many people aren’t aware that Westchester County police Mr. Hernandez’s family experience for the Hernandez members within days: Timothy however, because of how the the station is owned by New on Thursday recovered the watched as the boat was re- family. They were telling me Conklin of Westbury, N.Y., and FCC process will be run—a “re- York City because of “branding body of the final missing crew covered from the water. “Even the stories of Harry and how Paul Amon of Bayville, N.J. verse auction” in which bids and marketing” issues that she member from the tugboat in- though we know that to be ab- he just loved the water,” U.S. Coast Guard and drop until the agency gets the intends to fix. She plans to add volved in a fatal accident ear- sent from the body is to be Westchester County Executive Westchester County officials licenses it needs—and it may programming that focuses on lier this month near the Tap- present with the Lord, we are Rob Astorino said at a news are continuing to investigate decide it doesn’t need the sta- civic engagement, women and pan Zee Bridge. comforted to know that we conference Thursday. the accident. A full report may tion at all. “diverse voices.” Harry Hernandez, 56 years can now put his body to rest,” Detectives removed the GPS take several months but a pre- Only stations that agree to The New York media market old, of Staten Island, was re- they said in a statement. devices and some log books liminary one may be available go off the air get the maximum is the country’s biggest, and its trieved from the boat once it Officers from the county’s from the boat that will be used next week, authorities said. payout. Stations also can accept local television stations drew a lesser amount to share their the biggest opening bids from airwaves or move to a different the FCC. Wireless licenses for channel. the region have historically ZONING The city had previously ac- drawn top dollar. In the last knowledged it was considering major auction of wireless spec- joining the process. In a July trum, AT&T paid almost $2.8 ContinuedfrompageA13 letter to the FCC concerning billion for one of six licenses drawings provided when the another issue, Mayor Bill de sold for the region. synagogue won an exemption from regular zoning rules for the site. The community house has been at issue on the Upper West Side since at least 1983, when the synagogue proposed putting up a 42-story apartment tower that would canti- lever over the peaked roof of the synagogue. Over time, the synagogue has scaled down its vision. In 2002, it proposed a 14- story building. In 2006, under pressure from the city’s Landmarks Preservation Commission, this was cut to nine stories, with

NYC MEDIA five condos including a pent- AGATON STROM FOR THE WALL STREET JOURNAL; PBDW ARCHITECTS (BELOW) Sonny Mangone in ‘Neighborhood Slice,’ which airs on WNYE. house, a wheelchair-accessible Above, the lot next to Congregation Shearith Israel where it proposes to build a community center entrance to the synagogue, a with condominiums on top that is under challenge. Below, a rendering of the proposed building. below-grade catering hall, and three floors of classrooms. DOCTOR FRICK Some of the apartments looked out over the synagogue toward views of Central Park. ContinuedfrompageA13 ContinuedfrompageA13 Still, opposition remained The other instances of al- The Frick receives about from neighbors whose light leged sexual abuse occurred 300,000 visitors a year, but be- and views would be blocked. last year—in August, Septem- cause it is a home retrofitted They were joined by a preser- ber and October. Dr. Newman as a museum and library, im- vation group, Landmark West!, fondled the breasts of three provements are needed to ac- which is worried about setting women when he treated them commodate the growth of the a precedent that could allow in the pediatric section of the collection, programming and other zoning exceptions for emergency room for a cold, an visits, said Mr. Wardropper. tall buildings on the mostly eyebrow rash and a headache, The expansion’s main goals low-rise side streets near Cen- Ms. Kim alleged. The women include increased gallery space tral Park West. were ages 18, 19 and 21. for special exhibitions and the The synagogue says the “There simply was no medi- permanent holdings, as well as problems raised by the city cally legitimate reason to fon- improved areas for the unload- stem from relabeling of rooms dle these women’s breasts,” Ms. ing of artworks and a more di- that can easily be reversed. Kim said. rect connection from the mu- “We have revised the building- In court, Ms. Kim recom- seum to the reference library. department drawings and re- mended four years in prison Also on the wish list: areas filed them with the board,” and registration as a sex of- for conservation work, educa- said Samuel G. White, the fender for a guilty plea on the tional programs and a poten- project architect and a partner one count of sexual abuse in tially overhauled auditorium. at PBDW Architects. the first degree. Dr. Newman Opening up the second floor, But opponents say that and his attorney declined to where bedrooms were con- even if the building depart- comment after the hearing. verted to administrative of- ment drops its threat, they of the synagogue’s building institutions to meet their or president, of the syna- The next court date, on pre- fices, has been part of plans for would continue to challenge committee, said his father “programmatic needs.” gogue, said the congregation trial motions, is set for June 23. decades, but is now a priority. the project through the courts. joined the synagogue in the But, when revised plans has been assured by city offi- “That’s really a key for us,” Alan Sugarman, a lawyer mid-1960s, when it was al- were submitted to the build- cials that there was “nothing said Mr. Wardropper. “It al- who filed the zoning appeal ready working on plans for a ings department last year, the approaching bad faith in the CORRECTIONS lows us to show more of the on his own behalf and that of new community house. number of classrooms was cut synagogue’s submissions.” He permanent collection and al- several neighbors, said the ap- At issue in the dispute is a and many spaces were labeled said that while the synagogue AMPLIFICATIONS lows the public to access more peal showed that the syna- 2008 decision from the Board as “offices” instead. is no longer planning to rent of the original house.” gogue didn’t act in good faith of Standards and Appeals that Kate Wood, executive direc- classroom space to a day when it said it needed a hard- granted the synagogue an ex- tor of Landmark West!, said school, it has had a Hebrew Melissa Butler witnessed ship exemption from zoning emption from zoning rules the solution was for the syna- school for “more than 200 the November 2014 fatal We Want to Hear rules to accommodate its pro- that included a height limit of gogue to comply with the un- years.” shooting of Akai Gurley by Pe- From You grammatic needs. 75 feet on much of its building derlying zoning rules. “The underlying needs of ter Liang, who then was a New Have something to say about “We are preparing to site. That rule was adopted in “The community has always the synagogue, the programs York Police Department offi- an article in Greater New pounce no matter what they 1984, soon after the syna- maintained that the synagogue we plan to run, the institu- cer. An article on Thursday York? Email us, along with do,” said Mr. Sugarman, who gogue proposed its tall condo could build an appropriately tional requirements, have not about the sentencing recom- your contact information, at lives directly across the street building. sized building that could fulfill changed,” he said. mendation for Mr. Liang incor- [email protected]. Your letter from the synagogue project. In its decision approving their programmatic needs,” Even with the legal situa- rectly identified the witness as could be published in our The congregation has been the building, which would be she said. Such a building tion uncertain, he said, the Kimberly Ballinger. weekly Feedback column on housed in five different build- 106 feet tall excluding rooftop would be no more than 75 feet “construction is proceeding.” Friday. Letters will be edited ings and moved to the Upper mechanicals, the board said it tall and have setbacks in keep- Vibration detectors have been Readers can alert The Wall Street West Side after its current was required under state law ing with the townhouses on installed on some of the syna- Journal to any errors in news articles for brevity and clarity. Please by emailing [email protected] or include your city and state. home was completed in 1897. to give “significant deference” the block, she said. gogue’s stained-glass Tiffany by calling 888-410-2667. Seth Haberman, a co-chairman to religious and educational Louis Solomon, the Parnas, windows. THE WALL STREET JOURNAL. ** Friday, March 25, 2016 | A15 CITY NEWS Former Officer Makes Apology For Shooting

BY PERVAIZ SHALLWANI officer testified that he and AND ZOLAN KANNO-YOUNGS his partner were on a routine patrol when he was startled by Former New York Police De- a sound and accidentally fired partment Officer Peter Liang the shot. The bullet ricocheted apologized Thursday to the do- off a wall and hit Mr. Gurley, mestic partner of Akai Gurley, killing him. the unarmed black man he was Prosecutors said the rookie convicted of fatally shooting. officer acted recklessly by hav- Mr. Liang and Kimberly ing his finger on the trigger Ballinger, the mother of Mr. and accused him of failing to Gurley’s daughter, met for administer first aid and wait- about five minutes, lawyers ing too long to report the for both of them said. The shooting. Mr. Liang and his meeting had been planned be- partner, who were both fired fore the Brooklyn district at- after the verdict, testified that torney’s office on Wednesday they didn’t immediately real- asked a judge not to sentence ize someone had been shot. the former officer to prison, Only Mr. Liang, Ms. Ball- both sides said. inger and an attorney for each of them attended the meeting, both lawyers said. It was held ‘She wanted to let in a conference room in the

Mr. Liang know that Brooklyn district attorney’s of- ADRIENNE GRUNWALD FOR THE WALL STREET JOURNAL fice, Mr. Shechtman said, but Akai Gurley’s aunt, Hertencia Petersen, condemned the district attorney’s decision not to seek prison time for the former officer. Akai Gurley was a the district attorney’s office good man.’ didn’t participate. tacted him and said the former District Attorney Kenneth I am discouraged, I am upset,” Mr. Barron. “Ms. Ballinger let Mr. Liang officer wanted to meet with Thompson wrote in a memo to she said, adding later that Mr. One protester carried a sign know that as a result of his ac- Ms. Ballinger to “express his Supreme Court Justice Danny Thompson and prosecutors saying “Jail Killer Cops.” Some “Basically, he said to her tions, her daughter no longer sorrow for what happened.” Chun that there was no evi- “have failed Akai Gurley.” at the rally yelled “Traitor!” in that he was sorry, and it was has a father and she is a single “We were told that she was dence Mr. Liang intended to State Assemblyman Charles reference to Mr. Thompson be- difficult to lose a loved one,” parent,” said Mr. Rynecki. open to the possibility and we hurt Mr. Gurley and that he Barron said protests of the de- cause they thought he be- said Paul Shechtman, Mr. Li- “She wanted to let Mr. Liang agreed to it,” Mr. Shechtman doesn’t pose a threat to public cision would continue. “We’ve trayed promises to hold police ang’s appellate lawyer, adding know that Akai Gurley was a said. safety. done everything peaceful to officers accountable. that Mr. Liang told the woman good man and a good father Later Thursday, a rally took While typically prosecutors’ try to get justice but don’t Melissa Butler, who was that what happened was “the and was missed by her and place outside the district attor- recommendations play a make us bring Ferguson to with Mr. Gurley when he was last thing he intended in the their daughter.” ney’s office to protest the rec- strong role in sentencing deci- New York City,” Mr. Barron shot, didn't speak, but cried as world.” Mr. Liang and Ms. Ballinger ommendation that Mr. Liang sions, the justice doesn’t have said, in an apparent reference her lawyer spoke of Mr. Mr. Liang, who is Asian- ended the meeting with both be sentenced to five years’ pro- to follow the suggestion. The to the unrest that took place Thompson’s recommendation. American, was convicted in saying they were people of few bation, including six months’ sentencing is scheduled for in the Missouri city after the “When we found out yester- February of manslaughter for words and exchanging a hand- house arrest, and 500 hours of next month. fatal shooting of an unarmed day that the district attorney shooting 28-year-old Mr. Gur- shake, Mr. Shechtman said. community service. Mr. Liang, At the rally, Mr. Gurley’s black man by a police officer. was recommending no jail ley inside the dark stairwell of Mr. Rynecki said that about 28, faced a maximum sentence aunt, Hertencia Petersen, spoke “It seems as if the only thing time, Melissa’s reaction was, all a Brooklyn public-housing a month ago, members of Mr. of 15 years in prison and a passionately against the rec- this country understands is this is for nothing,” said Roger complex in 2014. The former Liang’s defense team con- minimum of probation. ommendation. “I am appalled, when we tear it down,” said Wareham. “It was crushing.”

years in prison. His case was dis- Greater charged with conditions, among Atlantic City Fears Government Shutdown them staying out of trouble for a New York year. BY KATE KING Mr. Niccolini declined to com- AND HEATHER HADDON Watch ment after the hearing. His attorney, John Moscow said “The re- ATLANTIC CITY—As top cord speaks for itself.” New Jersey officials traded re- —Thomas MacMillan criminations Thursday about a proposed state takeover of At- STATEN ISLAND lantic City, Kayla Oliver won- NEW YORK CITY Three Shot, One Dead dered how she would feed her Four Seasons Owner baby if the city’s government At Housing Complex shuts down next month. Guilty of Assault Three people were shot on “You have single mothers Julian Niccolini, co-owner of Thursday afternoon outside a here and you’re shutting down the Four Seasons restaurant, public housing complex in Staten City Hall?” said Ms. Oliver, a pleaded guilty Thursday to misde- Island, leaving one woman dead. 25-year-old resident who vis- meanor assault, a lesser charge The 47-year-old woman was its City Hall to pick up a gov- than the felony sexual abuse shot in the head outside 14 Rox- ernment benefit check for count he had previously faced. bury Street of the Mariners Har- low-income mothers. “How Mr. Niccolini, 62, was arrested bor Houses around 6:11 p.m., said

are we supposed to get our MARK MAKELA FOR THE WALL STREET JOURNAL (2) in June and accused of sexually an NYPD spokeswoman. baby formula?” Emotions ran high Thursday in Atlantic City. Kayla Oliver, left, and Mayor Don Guardian, in bow tie. abusing a 28-year-old woman A 21-year-old man was shot Residents in this cash- during a party at the famous three times in the head and was strapped resort city said they scribed as another episode of “The streets are going to be The governor accused law- Manhattan restaurant. Assistant in critical condition. A 22-year-old are worried about how they politicians shortchanging the cleaned, and the trash is going makers of playing politics over District Attorney Maxine Rosen- man was shot three times in the will manage if Mayor Don city. to be picked up, and the police the interests of Atlantic City. thal said on Thursday that Mr. leg and was in stable condition. Guardian moves forward with “This town has more are going to be in full service “They should not play Niccolini inflicted scratches and Both were taken to Richmond his plan to close City Hall and money than Vegas,” said na- all over the city and the Fire chicken with me or test me,” bruises to the woman’s back, hips University Medical Center. suspend all nonessential city tive Michael Lombardo, 52, re- Department is going to stand Mr. Christie said in a radio in- and thighs. The suspect, a male in a gray services beginning April 8. Mr. ferring to a casino industry ready,” the mayor said. “How terview. “It’s my obligation to Mr. Niccolini had previously hoodie, fled in a dark-colored Guardian said the city has no that generated $5.2 billion in long can we last? Not long.” stop a train wreck when I see pleaded not guilty to a felony Hyundai, said the spokeswoman. choice because it is running gambling revenue as recently The city would resume nor- it coming.” charge that could have meant —Zolan Kanno-Youngs out of money and state offi- as 2006 but has since con- mal operations May 2 with Mr. Prieto stayed firm cials have rejected pleas for a tracted. “Where did it all go?” revenue from quarterly prop- Thursday in his opposition to bailout. erty-tax payments, Mr. Guard- the takeover bill and said the On Thursday, Gov. Chris ian said. But the city would governor already has, under a Christie, a Republican, and ‘It will only be a likely have to suspend services 1947 state law, the power to Assembly Speaker Vincent Pri- matter of weeks, not again without state aid, he control almost all aspects of eto, a Democrat, continued to said. Atlantic City’s government. blame each other for an im- months, until we run “It will only be a matter of “The only power he clearly passe that has left Atlantic out of money again.’ weeks, not months, until we lacks is to destroy existing City on the edge of bank- run out of money again,” he collective bargaining agree- ruptcy. said. ments—and everyone should Mr. Christie said he Mr. Guardian said the city, The mayor said Atlantic know how I feel about pro- wouldn’t provide aid unless which has seen its tax base City is “begging” the state for tecting collective bargaining state Assembly members ap- shrink 64% since 2010, would money, but he and other rights,” Mr. Prieto said. prove a bill already passed by try to keep as many services elected officials said they re- At some point, Atlantic City the Senate that gives the state as possible operating after main opposed to the takeover will be unable to make its debt full control over the city’s April 8, when he believes the plan. They said the takeover payments, which would force government and assets. Mr. city will be unable to make bill approved by the Senate vi- the state to make the pay- Prieto has declined to put the payroll for its 950 employees. olates residents’ constitutional ments or approve a bank- bill up for a vote because he The city’s schools will re- rights to elect their local lead- ruptcy filing, Mr. Guardian opposes a provision that main open, the police and fire ers. said. Given the choice between would let the state alter col- unions have agreed to work Mr. Christie said Thursday bankruptcy and a state take- lective-bargaining agreements without pay and an estimated that there are enough votes in over, the mayor said he would with the city’s unions. 200 other city employees have the Assembly to pass the bill be hard pressed to choose. Residents said they were volunteered to work provided and “if Atlantic City’s finances “That’s a very tough ques- furious and suspicious of they can collect unemploy- go down the tubes, there is tion that I ask God every elected officials at all levels of ment, the mayor said Thurs- only one person to blame and night,” he said. “He hasn’t government for what they de- day. that is Vincent Prieto.” given me an answer yet.” Fund for Public Schools Appoints a Director

BY LESLIE BRODY Mayor Michael Bloomberg, $48 million in the fiscal year ence for All, prekindergarten, benefiting from the star power ending on June 30, 2013. summer learning programs The Fund for Public of one of its leaders, Caroline The fund has raised $11.3 and so-called community MONSAT 10AM10PM Schools, the nonprofit organi- Kennedy. It aimed to raise pri- million so far in fiscal 2016, schools, which bring social SUN 10AM7PM zation that recruits donors to vate money to seed experi- compared with $16.3 million services on-site. New York City’s public ments that, if successful, could by the same time last year, a Ms. Geisenheimer, who will JAVITS CENTER schools, has named Sarah be brought to scale and usher city Department of Education earn $185,000 in her new job, AUTOSHOWNY.COM Troup Geisenheimer its execu- in systemic change. official said. said she seeks to stabilize an tive director, city officials said The nonprofit works with Ms. Geisenheimer said her organization where nine of its Buy Tickets Online or at the Door Thursday. the Department of Education, goal isn’t hitting a certain dol- roughly 20 staff positions Tickets are just $16, children $7 Ms. Geisenheimer, 32 years and New York City Schools lar amount. “We always want were vacant when she arrived old, has been leading the fund Chancellor Carmen Farina to develop partnerships in a in December. She expects to be Save on discount rail and show packages with LIRR and Metro-North at mta.info in an interim capacity since heads its board of directors. In way that is meaningful,” she fully staffed next month. NY Waterway combo tickets also available at AutoShowNY.com December, when its previous the past six years the fund said. She began her fundraising RECORDED INFO: 800-282-3336 head, Iris Chen, abruptly de- typically had annual revenues She aims to team up with career as a receptionist at the FOR SECURITY PURPOSES, NO BACKPACKS ALLOWED. parted. of more than $20 million businesses and foundations to Rockefeller Foundation, and RANDOM SECURITY AND BAG CHECKS. The fund, grew sharply dur- through contributions and bolster the department’s pri- eventually became an associate AN ACTIVITY OF THE GREATER NEW YORK AUTOMOBILE DEALERS ASSOCIATION. ing the administration of grants, with a peak of about orities, such as Computer Sci- director at the organization. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A16 | Friday, March 25, 2016 **** THE WALL STREET JOURNAL. FEEDBACK FRIDAY

Different Takes: City University of New York

Tough Response Needed Anti-Semitism Can’t Be address the problem. For Badgering Students Tolerated by Colleges It is important that CUNY I am thoroughly unim- In reporting that “a swas- take anti-Semitism seriously pressed with the response tika [was] found on one of and do more to ensure the by the CUNY administra- the school’s campuses,” a safety of their Jewish stu- tion to the near-violent reader might think that only dents. harassment of Jewish stu- a single incident of a swas- Morr Mazal Barton dents and their limited tika being found on CUNY New York supporters by members of campuses was reported. I Students for Justice in know from personal experi- Less Fortunate Deserve Palestine (“Unforeseen ence that this isn’t the case. Chance to Go to College Turn in Fight Over Funds I attended Hunter Col- Many of the students at- for CUNY,” March 17). lege, Silberman School of So- tending the City University’s I had warned about cial Work, and I am aware of four-year and two-year col- SJP for years during my one incident in which a leges come from families service on the CUNY swastika was found in a with little or no money for board, as an appointee of women’s bathroom. college tuition. They are then-Gov. George Pataki, When I reported the inci- fiercely trying to fight their from 1999-2013. dent to Hunter Hillel, I was way out of poverty. Some The problem is that ac- told that “it happens more began their college careers ademic administrators at than you would think.” in private institutions and CUNY and nationally in- Additionally, during a are buried in loan debt. stinctively accept SJP’s ac- meeting with a Hillel repre- In addition, there are tivities as a free-speech is- sentative, I was told that in those who have lost their sue. They operate outside the 10 years that this repre- employment and are en- of the rubric even of oth- sentative was working at rolled in degree and certifi- ers with similarly abhor- Hunter’s main campus, it cate programs to acquire rent viewpoints. They are was hard for her to think of new skills so that they can the antithesis of the free a single year in which there come off the unemployment and open exchange of wasn’t at least one report of rolls. They can achieve their ideas on a campus. They a swastika being found on goal in an affordable man- are the equivalent of bully- campus. ner. ing brownshirts. They Though I was assured Reducing access to this must be prohibited on that Hunter College went superior institution of higher campuses throughout the through the proper protocol learning and the pathway to nation. with each report of a swas- class mobility for many No academic institution tika, I was disappointed that would be a grave error. in this country can func- the school didn’t issue a Abraham Axelrud, Ph.D. tion where SJP possesses a statement to the school com- Professor Emeritus critical mass of hoodlums. munity condemning this con- Queensborough Jeffrey S. Wiesenfeld tinuous problem and con- Community College Great Neck, N.Y. sider additional measures to Woodmere, N.Y.

With Fido Along, You Can been watching for my renew housing. And as any proving property rights and them around. This would Skip the Doggie Bag,” March sponse, caught my eye and high-school student knows, eschewing interference in significantly increase the 21). Having dutifully studied gave me his best Gallic if you constrain supply amid the real-estate market. arrival time at the most the old red Guide Michelin, shrug. growing demand, prices go Clifford Sondock heavily traveled stations. at a one-star restaurant I or- Henry I. Miller up. The mayor would best President Running trains from north- dered the recommended fish Stanford, Calif. serve New Yorkers by im- Land Use Institute ern Bronx to southern dish for my main course. The Jericho, N.Y Brooklyn during rush hour waiter came out with two makes no sense. plates of the same dish and De Blasio Rezoning Plan Subway Packed? Slow? Len Comberiate placed one in front of me Will Raise Housing Costs Tell Us Something New Ossining, N.Y. and the other on the unoccu- Mayor Bill de Blasio has Your article on the poor pied table next to mine. Sud- unwittingly set the frame- performance of the New Letters intended for publica-

LUCY GARDNER FORdenly, WSJ the resident cat work for a rise in New York York City subway comes as tion in the Greater New York jumped up on a chair, thence City’s housing unaffordabil- no surprise to me (“Subway section of The Wall Street Waiter, There’s a Cat… onto the table, and pro- ity (“Political Offensive Service Can’t Keep Pace Journal should be sent to: At the Adjoining Table ceeded to devour the fish, Buoys Rezoning,” March With Ridership,” March 24). [email protected]. Please in- About 30 years ago, I had carefully licking up every bit 23). Mandatory housing At a public hearing years clude contact information, in- a pet-related restaurant ex- of the delicious sauce. The mandates lower the profit- ago, I suggested that the cluding your address and phone number. Letters should perience in Paris far more cat then jumped off the table ability of new housing de- MTA run the 4 and 5 trains be a maximum of 300 words, bizarre than finding a dog in and disappeared out a doggy velopment, which greatly from northern Manhattan to and are subject to editing.

my chair (“Urban Gardner: door. The waiter, who had constrains the supply of JOHN TAGGART FORBowling WSJ Green and turn

CITY NEWS Port Authority Votes For ‘Integrity Monitor’ At La Guardia Project

BY ANDREW TANGEL ful—and ought to be an effective—prophylactic device,” he The Port Authority of New said. York and New Jersey voted The design panel that Mr. Thursday to require a con- Tishman headed recommended struction company overseeing changes to La Guardia’s con- La Guardia Airport’s redevel- figuration, including a new, opment to pay for an outside $310 million central hall as “integrity monitor” after it ad- part of a replacement of Ter- mitted to overbilling at the minal B. World Trade Center site. A Cuomo spokeswoman said The board of the company, the Port Authority’s inspector Tishman Construction Corp., is general would hire “indepen- headed by Dan Tishman, who dent, outside staff to ensure led a panel appointed by New the integrity of all the work York Gov. Andrew Cuomo to done at La Guardia.” She noted reassess the airport’s design. the Tishman-STV joint venture The company is a subsidiary of was chosen through a compet- AECOM, a major consulting itive bidding process in 2013, firm. before the airport design panel The Port Authority’s board was created. approved on Thursday the The monitoring resolution monitoring requirement in noted that Tishman Construc- light of Tishman’s deferred tion has “substantial ongoing prosecution agreement in De- contracts” with the Port Au- cember with federal prosecu- thority.

ADRIENNE GRUNWALD FOR THE WALL STREET JOURNAL tors in Brooklyn. According to Port Authority commissioners voted Thursday on proposals to revamp two major airports and where to build a new bus terminal. that agreement, Tishman admitted to fraudulently over- The Port Authority’s If the bus terminal were cal of the lease. But the mea- ness and transparency, a con- billing clients and agreed to projection of costs TRANSIT moved to New Jersey, that sure approved on Thursday trast to the days when dis- pay more than $20 million in would mean commuters still could allow the Port Au- agreements were largely restitution and penalties. The for La Guardia’s would have to take a second thority to contribute up to hidden from public view. company agreed to reimburse redevelopment stands ContinuedfrompageA13 ride to Manhattan. $150 million for the train- Mr. Degnan compared the the Port Authority more than them, Kenneth Lipper, ab- “New Jersey people don’t hall project. Port Authority’s newfound $400,000 as part of the agree- at $5.3 billion, a stained from a vote on the La need another stop on their The agency’s leadership is openness with “messy” ne- ment, according to the agency. figure some dispute. Guardia measure after voicing way to New York,” said David undergoing a protracted re- cessities of democracy that A Tishman spokesman said concern that it would prevent Rabban, 25 years old, as he structuring. Commissioners still could result in progress. the company thinks “the moni- the board from keeping a lid waited to board a bus to Pa- have yet to find a person to “This is the most signifi- tor is unnecessary because of The agency’s decision to on construction costs. ramus, N.J., at the current become the agency’s chief ex- cant step forward in contrib- robust protocols already in subject Tishman to an outside “It could make the Oculus terminal Thursday. ecutive officer, a new posi- uting to regional transporta- place, but will comply with watchdog comes as Port Au- look like pussyfooting The Port Authority also tion that replaces Mr. Foye’s tion infrastructure that the whatever is required by our thority Chairman John Deg- around,” said Mr. Lipper, retook steps on other major job. Port Authority has made in client.” nan, the top New Jersey ap- ferring to the centerpiece of projects. It approved up to When a CEO is found, New its modern era,” Mr. Degnan “There has never been an pointee on the agency’s board, the World Trade Center train $35 million for preliminary York is expected to take over said following the meeting. assertion of billing problems has questioned the growing station that wound up costing engineering work on a proj- the board’s chairmanship for “The fact that it involves at LGA,” said the spokesman, estimates related to overhaul- about $4 billion, twice its ect to dig two new Hudson two years and thus control some disagreements—and referring to La Guardia. ing La Guardia. original budget. River rail tunnels. its agenda. Mr. Foye, who some open disagreements— In a joint venture, Tishman The agency’s official tally of Agency officials have esti- Commissioners also re- had withdrawn from the CEO don’t complain about what and STV Construction Inc. are costs for La Guardia’s redevel- mated a new Midtown bus ter- scinded a more than 15-year- search, recently decided to you’ve asked for.” managing construction related opment stands at $5.3 billion, minal will cost about $10 bil- old lease agreement that stay until a permanent suc- A Port Authority veteran to La Guardia’s redevelopment. exceeding some previous esti- lion. The Port Authority hasn’t New York state officials had cessor is picked. said Thursday’s meeting Port Authority Executive Di- mates by more than $1 billion. yet hammered out specific hoped would help fund the The Port Authority has “wasn’t just showing how the rector Patrick Foye said the in- Top New York officials at the plans, but Garden State politi- conversion of a post-office been criticized over the years sausage is made—it was tegrity-monitoring firm would agency have disputed the $5.3 cal leaders hailed the agency’s building into a train hall as as opaque and imperious. But slaughtering the pigs in front report to the agency’s inspec- billion figure, saying it is mis- commitment to keep the ter- part of an overhaul of Penn officials said Thursday’s of a crowded room.” tor general, and he described leading because it includes minal in Manhattan as a win Station. lively meeting underscored —Zolan Kanno-Youngs the arrangement as a routine work going back to 2004 and for New Jersey commuters. Mr. Degnan had been criti- the agency’s increased open- contributed to this article. step. “We believe that’s a use- other costs. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ** Friday, March 25, 2016 | A17 ARTS & ENTERTAINMENT Listening to the Voices of Arab Women

BY LIZZIE SIMON

“Intensity.” That, according to Cairo- based artist and curator Ad- ham Hafez, is what links the four solo works by female performing artists having their U.S. premieres Friday and Saturday at New York Live Arts. The two evenings of avant- garde movement and comedy at the group’s Chelsea headquarters are part of Live Arts’ ambitious, weekslong Live Ideas festival, which this year spotlights artists and intellec- tuals from the Middle East and North Africa region. ‘Each country, each class, each religious belief system has a separate reality for women and many of them are empowered.’

At a time when Western tensions with the area are roil- ing and cultural openness and understanding increasingly overshadowed by terrorism fears, the festival’s 25-plus offerings—in the performing and visual arts as well as master

classes, lectures, screenings, STEVE REMICH FOR THE WALL STREET JOURNAL (2) community dialogues and ‘Syrian-Palestinian-American choreographer Leyya Mona Tawil, shown below and rehearsing her dance piece, ‘Atlas,’ which she will perform at New York Live Arts. more—give New York audiences a chance to directly ex- At a quick glance, the solo- And Tunisian choreogra- venues from women in the re- perience a wide range of the ists, apart from gender and in- pher Amira Chebli’s “In Situ” gion. “I want to be careful region’s most prominent and tensity, share little in com- resembles a mix of early mod- about my words,” he said, be- pioneering cultural voices. mon. The artists range in age ernist dance with belly dance, fore pausing. “There is so “These are vital voices that from mid-20s to mid-50s and exploring what it means to be much melodramatic work that otherwise are not going to be represent an extended Middle an Arab woman performing in- just satisfies Orientalist expec- heard,” said Thomas O. East diaspora that encom- ternationally today. tations. This is not that.” Kriegsmann, Mr. Hafez’s co- passes the U.S. and Europe. “We belong to a common Each of the soloists charac- curator as well as director of Their aesthetic range is ground,” said Ms. Chebli, “yet terized the evening as an im- programs at New York Live also broad. to very different backgrounds, portant opportunity to re- Arts. “There is no better way Marie Al Fajr, a French treating things with different frame and elevate the to get the complexity through choreographer who has had a tools and exposing various vi- conversation about women than live performance, body major presence in Egypt for sions.” from the Middle East and to body, community to com- more than 20 years docu- Each solo, according to Mr. North Africa region, who are munity, in a room together menting dying dance tradi- Hafez, “proposes politics not often seen in the media and in through physical presence.” tions, will perform “Shagarat expected by Arab female per- popular culture as disempow- Mr. Hafez hopes that in the Mussafira (Traveling Trees),” formers.” There is no “sitting ered or delusional. curatorial breadth of the festi- a slow, meditative, Egyptian- in the work preaching.” “We’re actually quite em- val New York audiences take based contemporary dance. friendly art, is “stylistically can choreographer Leyya There are no survival tales, powered,” said Ms. Tawil. stock of how many different Egyptian-Irish performer more Tony Robbins than Ara- Mona Tawil’s “Atlas,” a col- designed to engender empa- “Each country, each class, each kinds of artists and themes Mona Gamil’s comedic piece, bian Nights,” she said, refer- laboration with violinist Mike thy. This, Mr. Hafez said, sets religious belief system has a are underrepresented in U.S. wherein she plays an author ring to the renowned motiva- Khoury, is about submitting the program apart from a type separate reality for women performance venues. “To see promoting a guidebook to tional speaker. to, and pushing against, the of work more typically im- and many of them are empow- the blind spots,” he said. making “safe” and market- Syrian-Palestinian-Ameri- burden of knowledge. ported to U.S. performing-arts ered.” Kickin’ Back for a Big Easy Museum Reliving History

New Orleans came to New music, and I ask New York- York at a party Wednesday ers to show some Southern in Harlem. The gathering at hospitality to the musicians.” Minton’s on West 118th Among the New Yorkers Street was a casual fund- who brought their respect, raiser for the Contemporary kinship and fellowship were Arts Center New Orleans, Mia Moretti, Sarah Sophie which is celebrating its 40th Flicker, Andrea Glimcher, anniversary this year. Carolyn Angel, Casey Fre- So why mont Crowe, Sade Lythcott, come to New Naja Hill, Fabiola Beracasa York? and Jason Beckman, Sarah “New York Jones and Nell Diamond. is obviously “It’s going to get crowded the center of and rowdy, and it’s set up MARSHALL the contempo- for that,” said Kate Greer. HEYMAN rary art “We wanted to be able to world,” said push the tables to the side,” the museum’s said Ms. Wade. “We wanted director, Neil Barclay, as to make it unlike any other waiters passed Gin Fizzes, charity event.” fried macaroni- and-cheese Ms. Wade grew up in New balls and shot glasses of Orleans, the daughter of a gumbo. “But I think more musician and a chef, and and more people are inter- moved to New York just af- ested in where creative pro- ter Hurricane Katrina.

duction is happening at a LEANDRO JUSTEN/BFA (3) “I’m obsessed with New high level everywhere else. Solange Knowles, Neil Barclay and Cleo Wade at Minton’s. Below Orleans,” she said. “When I And we want people to say, left, Kate Greer and Sarah Sophie Flicker. Below right, Adolophine was a kid, my favorite field ‘Wow, there’s contemporary Sheeley and Rashaan Reid. Ms. Wade spearheaded the benefit. trip was going to the Con- art in New Orleans.’ ” temporary Arts Center.”

Mr. Barclay said he To honor the 10th anni- NEW-YORK HISTORICAL SOCIETY thought Harlem was a good versaryofKatrinainNew FIFTH AVENUE, NEW YORK, 1916: As Europe fell deeper into place for a party like this be- Orleans last fall, she in- world war, a U.S. ‘preparedness’ movement arose, whipping up cause both the neighborhood stalled a billboard of an patriotic fervor to enter the conflict. ‘The Fourth of July, 1916,’ by and New Orleans have a anonymous love poem. It acclaimed American impressionist Childe Hassam, captured New long-standing tradition of read: “Baby you’re the stron- York’s own impressive flag-waving pageantry. To mark the 100th music. gest flower that ever grew/ anniversary of the canvas, New-York Historical Society’s Chairman “New Orleans has such a remember that when the Emeritus Richard Gilder has donated the quintessentially New strong African diaspora cul- weather changes.” Around York picture, formerly owned by Frank Sinatra, to the museum. ture and that culture is so that time, she reconnected much a part of the city,” he with the CAC. said. “Harlem is another one “I was so overcome with of those kind of places.” emotion. I was just like, ‘We And besides, Mr. Barclay have to do something,’ ” Ms. CostaRica9-Days$1195 added, “We’re New Orleans. Wade recalled. “It’s like Guided Tours Since 1952+tax,fees I’m sorry, it’s fabulous.” when you walk into one of Guatemala, Tikal 10 days $1295 (On Wednesday, Harlem’s these beautiful institutions •CostaRica 9days $1195 art scene was particularly in Harlem and feel the Panama with Canal 8 days $1195 hopping: The artist Rashaad magic. It’s so concentrated Nova Scotia, PEI 10 days $1395 Newsome also was celebrat- with magic.” Canadian Rockies 9 days $1595 ing the opening of his show Ms. Wade added that get- Grand Canyon 8 days $1395 “This Is What I Want To ting her friends involved was Keel-billed Toucan Explore Volcanoes, Beaches California Coast 8 days $1395 See” at the Studio Museum “one of the easiest things Mount Rushmore 8 days $1295 and Rainforests—All Meals on West 125th Street.) I’ve ever asked anyone to New England 8 days $1295 Solange Knowles helped bone Shorty,” said the artist sneak in the off-limits part do.” Included!—Join the smart curate the evening’s musical and poet Cleo Wade, who to see the exhibitions.” “This is definitely not just shoppers and experienced “ Brilliant, Affordable Pricing ” performances, which in- spearheaded the benefit. Ms. Knowles wanted to the highlight of my week, it’s travelers who rely on Caravan —Arthur Frommer, Travel Editor cluded Leyla McCalla, who “With me being from New make sure the benefit was the highlight of my living in forawonderfulvacation. Order FREE 28-Page Brochure: flew in from New Orleans for Orleans, I’m happy to do more about New Orleans New York,” she said of the Call for choice dates. the night and played the anything to help for a great than about herself. “Tonight event. “I get to share the cello and banjo, and jazz mu- cause,” Trombone Shorty isn’t about me,” she said. city I love with the urban sician Trombone Shorty. said. “I grew up going to the “One thing that I love about family that I love, too. It “We couldn’t do anything CAC, and whenever I per- New Orleans is the respect, may sound cheesy, but it’s in New York without Trom- form there now, I always kinship and fellowship of the true.” 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 | Friday, March 25, 2016 ** THE WALL STREET JOURNAL. SPORTS NBA’s Best Set Example for Knicks and Nets

When the San Antonio Spurs and Golden State Warriors battled each other this past weekend in Texas, what would ordinarily be a routine regular- season matchup was actually so mo- mentous that it prompted some fans to forget about March Madness for a couple of hours. Even with their 87-79 loss that night, the War- riors, at 64-7, remain on pace to break the NBA record for wins in an CHRIS NBA season. And the HERRING 60-11 Spurs aren’t far behind, having an outside chance of making this the first season in history in which two teams finish with at least 70 wins. Per- haps most incredible: Both Western Conference powers are on pace to finish 10 wins better than the Eastern Confer- ence-leading Cavaliers. How is the Western Conference staying so far ahead of the East, and why have the Knicks and Nets, specifically, failed so completely to replicate the winning model despite their ample resources and appealing markets? Sure, the Spurs, Warriors and Oklahoma City Thunder have star players other clubs would kill for. But future Hall of Famers have played in both Brooklyn and Man- hattan in the past five years. Much more important has been their unwillingness to commit to the level of fore- sight, patience and experimentation required to reach this level of everyday dominance. San Antonio’s Boris Diaw, left, and Golden State’s Draymond Green personify their respective teams’ emphasis on patience and talent development. The Spurs have long been at the forefront of foreign scouting, nabbing have drafted one future All-Star since The Spurs picked him up off waivers in MVP consideration this season. Mean- Finally, though, both the Knicks and Manu Ginóbili late in the second round 1988 (David Lee in 2005), while the 2010, then waived him and sent him to while in Golden State, veteran Andre Nets are showing signs of turning over in 1999 and Tony Parker late in the Nets have drafted one since 2004 the D-League, but never really gave up Iguodala has allowed the Warriors to a new leaf. Last month the Nets hired first round in 2001, then nurturing (Brook Lopez in 2008). And take smart, on him. Now, even in a down season, do the same for Green, who has blos- ex-Spurs assistant general manager them into stars who fit perfectly with measured risks to improve your club Green is known as one of the NBA’s somed into a star in his own right this Sean Marks in the hope of establishing Tim Duncan. The Warriors have also once you’ve clearly identified your most reliable role players, providing season. the same sort of culture, especially scored in the draft, making Stephen team’s biggest flaw. San Antonio up- solid perimeter defense and forcing If the Warriors and Spurs have been since Brooklyn doesn’t control its first- Curry the third point guard picked in graded its athleticism by trading fan fa- teams to close out on him at the 3- two of the more stable, selfless teams round draft pick until 2019. Players like 2009 and landing Draymond Green— vorite George Hill to Indiana in 2011 for point line on offense. in recent years—they both run fluid, rookie Rondae Hollis-Jefferson, who en- perhaps their best all-around player—in the draft rights to Kawhi Leonard, who “The first two times we cut him, he pass-happy offenses and rank No. 1 and tered the league with many of the the second round in 2012. In between is now the Spurs’ best player. In 2014 was God-awful,” said Gregg Popovich, No. 2 in “hockey” assists, which involve same physical traits and shooting limi- those picks, they landed Klay Thomp- the Warriors parted ways with coach who has won five championships as the more than one pass, according to tations that Leonard did, are a very son in the 2011 draft. Mark Jackson, who had a winning re- Spurs coach, earlier this season. “But NBA.com—the local NBA teams have good start. Prescient draft sequences like these cord over three seasons, and replaced over the last few years he’s really got- been anything but. Over the last five- And while Phil Jackson opted to fire are incredibly tough to pull off, but far him with first-timer Steve Kerr, who ten better, both on and off the ball. He’s plus seasons, the Nets and Knicks have his first head coaching hire, Derek more salary-cap friendly than relying went on to win a championship in his blocking shots, which is incredible to cycled through 77 and 74 players, re- Fisher, just a year and a half in to on big free-agent deals and huge first season as a coach. me. And it’s helped us, because Kawhi spectively, the second- and fourth-most Fisher’s tenure, the Knicks finally have trades. The Knicks and Nets are all too Most important of all: Maximize the doesn’t always have to guard whoever in the NBA during that span, unwilling to apotentialstarcenterontherosterin familiar with that calculus, as are some talent around your stars by finding and that [opposing star] is. Instead, Danny give their younger players the time and Kristaps Porzingis—something they ha- of the Eastern Conference’s more suc- molding your role players. Boris Diaw, can take him for a while. And that’s attention they need to really develop. ven’t really had since Patrick Ewing. cessful teams, like Miami and Cleve- the rotund Spurs forward who excels been really special for us.” In New York, the impulse is too of- As for now, enjoy what you’re see- land, who have been burdened with ex- in passing and defending superstars In other words, Green’s presence on ten to swing for the fence, going all-in ing from the Spurs and Warriors, be- orbitant luxury-tax bills at one point or like LeBron James, is one good exam- defense has allowed the Spurs to be as if you’re always one big move away cause while many teams will try to another in recent years. ple of this. But guard Danny Green more patient in bringing along the 24- from title contention, even when it replicate what they’ve put in place, few So, nail your draft picks. The Knicks may be San Antonio’s best example. year-old Leonard, who will garner some comes to the front office. if any will actually be able to do it. Rodriguez: I’ll Retire When I Want To

BY JARED DIAMOND contract. I have the right to make a the Yankees’ game there against the decision then, too.” Toronto Blue Jays on Saturday. TAMPA, Fla.—Alex Rodriguez For Rodriguez, a lot can change in The Yankees, who will pay Rodri- caused quite a stir at Yankees’ camp the next 24 months. He will enter guez a $20 million salary in each of Wednesday when he told an ESPN 2016 fourth on the all-time list with the next two years, don’t appear es- reporter that he “won’t play after 687 home runs, needing 76 to sur- pecially surprised about Rodriguez’s next year,” meaning the 2017 season. pass Barry Bonds’s record of 762. He intentions. Manager Joe Girardi said It turns out he really meant it—un- that when he joked about the situa- less, as a sentient human being who ’I’m going to fulfill my tion with Rodriguez on Thursday, the possesses free will, he happens to designated hitter expressed confusion change his mind sometime between contract,’ he said. ‘I about why his proclamation about re- now and then. have the right to make a tirement sparked such coverage. Speaking before Thursday night’s “He said, ‘Why is it news that a spring-training game against the decision then, too.’ guy that’s 42 might retire?’” Girardi Tampa Bay Rays at George M. Stein- said. “I know in most other jobs, brenner Field, Rodriguez said repeat- that’s kind of strange, but there edly that he stands by his comments could move into third place as soon aren’t a whole lot of 42-year-old regarding his plans. He described his as this season, sitting 27 behind baseball players running around, at statement as “dead accurate,” and he Babe Ruth. Considering the fact that least playing professionally.” expects to leave baseball after the Rodriguez hit 33 homers last year, Everything Rodriguez says or 2017 season, when his 10-year, $275 Bonds’s record seems attainable— does generates headlines, however million contract expires. but in three seasons, not two. innocuous. But his confusion does “He asked me a question, and I Might these personal milestones make some sense. By October 2017, answered it,” Rodriguez said of his affect his decision? “Those are such he will have played 23 major-league Alex Rodriguez has two years and $40 million left on his Yankees deal. comments on Wednesday. Then hypotheticals,” Rodriguez said. Asked seasons. A year ago, as he attempted again, as he pointed out, “In base- what he would do if the Yankees of- to return to the Yankees following the middle of the Yankees’ lineup. It he still has two more good seasons ball,30daysisaneternity.” fered him an extension after 2017, he his 162-game suspension, Rodriguez remains unclear how much longer left in him. “The only plan I have is “I can’t say what’s going to hap- dodged again. didn’t know whether he would step that will that last. Ultimately, perfor- to play baseball right now,” Rodri- pen in two years,” said Rodriguez, “I cannot answer that. I don’t inside a batter’s box again. mance and health could tell Rodri- guez said. “I’m 40-years old. I’ve had who will turn 41 in July. “I have a even know if I’m going to Dunedin He did that and more last season, guez when to walk away. two hip surgeries. At my age, I’m commitment. I’m going to fulfill my on Saturday,” he said, referring to however improbably, as a force in Until then, the Yankees just hope day-to-day.”

Kicker Josh Brown and the Giants Taking It Out on the Kicker NFL’s New Touchback Rule forced touchbacks on just 39.5% of The Jets and Giants were near the bottom of the NFL kickoffs last season. Should Help Jets and Giants last season in forcing touchbacks on kickoffs. KICKOFF OPP. AVG OPP. TOUCHBACK KICKOFF START The Jets and Giants could be the team from this rule is even greater. TEAM RATE RETURNS POSITION* biggest beneficiaries of the NFL’s de- Folk’s replacement after his leg injury Best cision this week to move touchbacks last year, Randy Bullock, generated 1. Indianapolis on kickoffs from the 20-yard line to touchbacks at a more respectable rate, 87.0% 8 21.8 2. Baltimore the 25. 47.6%. Compare that to Folk’s 33.3%, 85.1% 9 22.6 and his second-worst 30.4% in 2014. 3. Denver 69.7% 25 23.2 Take a Number So Folk, rumored to be a candidate to 4. Atlanta 68.4% 22 24.8 be cut for salary-cap purposes, may 5. New England 67.9% 29 20.0 now be a better value at his $2.75 mil- Worst Last season, the Jets’ kickers lion salary (the Jets could save about 28. Pittsburgh 43.8% 54 24.9 ranked 31st in the NFL in forcing $2.2 million by cutting him, according 29. Houston touchbacks on kickoffs, at just 39.5%. to OverTheCap.com). 42.9% 40 22.4 30. N.Y. Giants The Giants were 30th at 39.8%. Com- Why? Folk’s major weakness, his 39.8% 54 21.8 pare that with the league-leading pop-gun leg off the tee, is no longer 31. N.Y. Jets 39.5% 49 21.1 Colts, who forced touchbacks on 87% an issue given that the Jets are likely 32. Cleveland 38.6% 42 22.6 of their kickoffs. In an effort to reduce to actually gain field position on his Source: Stats, LLC The Wall Street Journal. injuries, the NFL wants to reduce the returnable kicks—it’s harder to bring *after kickoff returns, not including TDs and onside kicks incentive of return men to take off the ball out to the 25 than to the 20. from inside their own end zones on Last year, the Jets’ opponents’ average kickoffs by awarding them an extra starting position after kickoff returns the field-position battle after kickoffs average field position just short of in 2016, they can focus on hitting five yards for taking a knee. was the 21.1-yard line (fifth best), ac- given their coverage success. Last the 22-yard line (seventh best, ex- their kickoffs inside the 5-yard line, If Nick Folk returns as the Jets’ cording to Stats, LLC. year, after Josh Brown kicks, the spe- cluding TD returns). Like Folk, Brown’s rather than into the end zone. kicker in 2016, the advantage to the The Giants also are poised to win cial-teams unit held opponents to an speciality is accuracy, not distance. So —Michael Salfino (T-B) MARCIO JOSE SANCHEZ, STEVE NESIUS, JAMES KENNEY (ASSOCIATED PRESS) For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com BUSINESSWSJ.D B4 | CROSSWORD &B6 TECH. Netflix Throttles Videos VW Wins a Reprieve On AT&T and Verizon To Make Diesel Fix MOBILE | B3 AUTOS|B3

Starboard’s move to Explores unseat directors kicks Sale After off scramble to gain Game On other holders’ support Starboard Value is nominating nine directors to the board of Yahoo, Revamp BY DAVID BENOIT an attempt to change the BY STEVEN PERLBERG AND DOUGLAS MACMILLAN whole board. The hedge David Filo AND DANA CIMILLUCA Maynard Webb Jr. fund’s nominees cover Co-founder and Chairman of the board, The official launch Thurs- a wide range of Chief Yahoo Playboy Enterprises Inc. is experiences. Yahoo; founder, Webb day of Starboard Value LP’s Investment Network exploring a sale, according to bid to oust all of Yahoo Inc.’s people familiar with the situa- directors kicks off a scramble Catherine Friedman tion, a move that comes soon for the backing of other share- Former managing after the storied magazine holders in a battle over how to Current Yahoo Board director, Morgan Rick Hill publisher ditched nude photos salvage the beleaguered Inter- Stanley Sue James Tech executive, initially fought and launched a revamp for the net pioneer. Retired partner, Starboard following its digital age. Starboard and Yahoo have Ernst & Young investment at Tessera Investment bank Moelis & similar ideas on what Yahoo Jane E. Shaw Co. is advising Playboy, which should do: Try to sell the com- Retired chairman of Hugh Hefner, the company’s pany for an attractive price the board, Intel founder, took private in 2011 and, failing that, refocus its alongside private-equity firm operations and tap the value Marissa Mayer Rizvi Traverse Management. of its Asian assets. Mr. Hefner owns a roughly H. Lee Scott Jr. CEO, president & But that general agreement one-third stake in the com- Retired president and director, Yahoo Dale Fuller belies the two sides’ lack of pany, the people said. CEO, Wal-Mart Former interim head of mutual trust. Each will try to McAfee and an Apple Eddy Playboy doesn’t disclose de- convince investors in the next manager Hartenstein tailed financials. In 2015, the few months that it is best- p Ran Tribune Co., DirecTV company generated $38 mil- placed to find the top deal for lion from media, including the Proposed New Yahoo Board and the Los Angeles Times the company or turn it around. Thomas McInerney magazine and digital publish- Yahoo and its embattled ing initiatives, and $55 million Former CFO, IAC/ chief executive, Marissa from licensing its brand to InterActiveCorp Mayer, have been trying to other companies, according to convince investors that they Jeffrey Smith a document reviewed by The are taking the right steps, Starboard CEO, pushing Brad Buss Wall Street Journal. The li- starting with the formation of to oust Yahoo's board censing business could be Veteran tech CFO, on a special board committee to worth hundreds of millions of Eric Brandt the board of Tesla Lance Conn explore strategic options for dollars, the people familiar Former CFO of Ex-president of the company and its core Web with the matter said. Broadcom Paul Allen’s business. Yahoo also reversed investment fund Playboy could fetch north a plan to separate its stake in of $500 million, and potential Alibaba Group Holding Ltd.; buyers could include compa- announced big expense reduc- Bridget Baker Tor Braham nies that would license the tions; and added new direc- NBCUniversal executive Former M&A deal maker at Debra Janssen brand for use in consumer tors. helped build its cable empire Deutsche Bank and Credit Suisse Operating chief of Bankers Trust goods, new media outfits and Yahoo management has be- trophy buyers, the people said. gun meeting with potential Photos: Associated Press (3), Bloomberg News (2), Broadcom, CDS Global, Courtesy of Starboard (2), EnteroMedics, Getty Images (2), IAC, Intel, Tessera, Reuters, Yahoo The 2011 deal that took Play- bidders to explore a sale and a boy private valued it at $207 so-called data room has been million. The company owns Please see YAHOO page B4 Source: The companies THE WALL STREET JOURNAL. Please see PLAYBOY page B2 For Chocolate, High Cost of Cool Saps Online Sales

BY ROBBIE WHELAN entine’s Day and Easter. tomers used to free shipping Keeping a small shipment on many online purchases. The rise of online shopping of chocolate cool can cost It doesn’t help that FedEx has put chocolate makers in a more than the product itself. Corp. and United Parcel Ser- sticky situation. Hershey charges $6.95 to ship vice Inc. have introduced new Chocolate often melts dur- a $4.25 bag of Kisses ordered shipping rates that charge ex- ing shipping in the summer on its website. On the site, the tra for bulky packages, making months and in warmer climes, Pennsylvania-based maker of it costlier to encase a small or arrives covered in “bloom,” Kit Kat and Reese’s also amount of chocolate in a foam a white film that coats the “strongly suggests” that cus- cooler with liquid ice packs. chocolate when sugar or fat tomers buy liquid ice packs “Every consumer-goods rises to the surface. and a foam cooler for an addi- manufacturer is trying to fig- Companies like Hershey Co. tional $4.99. That, plus the ure out how to do direct ship- and Mars Inc. typically hire recommended expedited shipping so they can say…they’re refrigerated trucks to ship pal- ping, would bring the cost to an alternative” to Ama- lets of their products to $20.20, before taxes. zon.com, said Bobby Miller, a stores. But when a customer As they come under grow- partner at Ortec International, places an order online—a fast- ing pressure to offer direct on- a consulting firm and supply- growing segment of the mar- line ordering, chocolate mak- chain software designer whose ket—shipping costs can sky- ers have yet to figure out how clients include Hershey and

rocket. Such orders usually to control online shipping Ferrero Rocher maker Ferrero TIMOTHY FADEK/BLOOMBERG NEWS surge around holidays like Val- costs. That can alienate cus- Please see CANDY page B5 Chocolate typically is shipped to stores in refrigerated trucks, but online orders are costlier to ship. ChinaUnleashes$24BilliononChips Car Makers Steer Cash BEIJING—China is putting said the XMC spokesman. $24 billion toward building a Big Ambitions Cypress, based in San Jose, To Self-Drive Upstarts BY MIKE RAMSEY world-class semiconductor in- While South Korea and Japan lead in ﬂash memory production, Calif., with revenue of $1.6 billion pany, which like Cruise Auto- dustry, exploiting a partner- China hopes itcan catch up last year, has long been known mation and Zoox has been op- for a class of memory chips General Motors Co.’s pro- erating under the radar, just By Eva Dou in Beijing Market shareof NAND ﬂashmemorychipsin 2015 called SRAMS, for static random posed purchase of tiny Cruise raised $12 million from ven- and Don Clark in San 40% Taiwan China U.S. Singapore Japan Korea access memory. By merging with Automation Inc. for more ture-capital investors. Francisco Spansion, a former joint venture than $1 billion would be one of “The Cruise purchase is 30 of Advanced Micro Devices Inc. the auto industry’s biggest Sil- making VCs notice,” she said. ship with a U.S. company for and Fujitsu Ltd., Cypress gained icon Valley acquisitions to Ms. Reiley added the GM deal the production of memory expertise in the flash-memory date. And it would certainly could have a big impact on in- chips used in a wide array of 20 technology used in smartphones not be the last. vestments in autonomous- electronic devices. and other products. Auto makers and car-parts driving startups. On Monday, XMC, a con- 10 The XMC spokesman said the suppliers have hooked into Consultants at Pricewater- tract chip maker owned by the $24 billion will be invested in tech startups in recent years houseCoopers LLP estimate Chinese government, will 0 three stages, with an initial fac- to boost their in-vehicle con- 2015 merger-and-acquisition break ground in the city of tory focusing on NAND flash- nectivity and to accelerate au- activity by automotive suppli- 1Q 4Q* 1Q 4Q* 1Q 4Q* 1Q 4Q* 1Q 4Q* 1Q 4Q* Wuhan for the first Chinese- memory production, a second ers reached nearly $50 billion, owned plant dedicated to pro- *Estimates Source: Bernstein Research THE WALL STREET JOURNAL. plant concentrating on DRAM GM made a splash more than three times the ducing the most widely used chips and the third stage de- prior year. The industry’s need memory chips, an XMC nese policy makers as they cybersecurity experts. voted to facilities for suppliers. with a $1 billion for new capabilities is helping spokesman said. promoteashiftfromlow- China raised alarms in XMC and Spansion in a joint deal for a Silicon fuel the spending. XMC last year partnered end manufacturing to more- Washington last year when statement about their partner- Auto companies “are racing with U.S. flash-memory maker advanced sectors state-owned Tsinghua Uni- ship last year said the first prod- Valley firm. to improve engine technology Spansion Inc. to co-develop Beijing, which has estab- group attempted to invest in uct will be available in 2017. to satisfy government-man- next-generation chip technolo- lished a national fund to support multiple U.S. chip makers. The A Cypress spokesman had dated fuel standards and con- gies. Spansion later joined the semiconductor sector, also move by the fast-emerging no comment Thursday. tonomous-car development. sumer demand for more con- with Cypress Semiconductor has pushed technological self- Chinese technology company “It’s a signature break- The Bay Area already is dotted nected vehicles with Corp. as part of an all-stock sufficiency following Edward has come to naught so far. through,” said Sean Yang, re- with auto-industry outposts autonomous-driving capabili- merger valued at $5 billion. Snowden’s revelations that the XMC’s factory will produce search director of TrendForce’s funding or recruiting Silicon ties,” the firm said in a report Chinese companies cur- U.S. National Security Agency both flash memory and com- DRAMeXchange, a memory- Valley engineering talent to published in January. rently account for minimal exploited backdoors in some puter memory chips known as sector research firm based in keep pace with Alphabet Inc.’s IHS Automotive, which pro- production of memory chips, U.S. technology products to spy dynamic random access mem- Taiwan. “It’s a milestone for a Google X and others working vides auto-industry data and which are used to store data in on foreign governments. Mem- ory, or DRAM. It will be largely Chinese company to actually on self-driving cars. forecasts, sees annual sales of electronic gadgets. Semicon- ory chips are not a primary tar- financed by China’s national start on this path.” Carol Reiley, president of self-driving or driverless cars ductors in general have be- get for hackers, but theoretically semiconductor fund as well as XMC, whose Chinese name Bay Area autonomous-driving reaching 21 million within 20 come a major target for Chi- could be hacked, according to the provincial government, Please see CHIP page B2 startup Drive.ai, said her com- Please see AUTO page B2 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 | Friday, March 25, 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 Deutsche Post...... B5 P-R Accenture...... B5 E PayPal Holdings...... C2 Advanced Micro Energy Future PetroChina...... C8 Devices...... B1 Holdings...... B5 Pitney Bowes...... B6 Advanced Scientific Exxon Mobil...... C8 Concepts...... B2 F Ryanair...... A2 Alibaba Group S Holding...... B1,C2 Facebook...... B4 Scholastic...... B5 Alphabet.....A5,B1,B4,B6 FedEx...... B1,B6 Signet Jewelers...... B5 American Airlines FirstMerit...... C2 Fujitsu...... B1 Snapchat...... B4 Group...... B3 G Spansion...... B1 American Express...... C2 SpringOwl Asset Apax Partners...... C2 GameStop...... B4 Management...... B4 Apple...... B4,B5 General Motors...... B1 Sprint...... B3 ArcelorMittal...... B5 Gilead Sciences...... B3 Square...... C1 AT&T...... B3,B4 Goldman Sachs Starboard Value.....B1,C8 B Group...... A2,C3 T Google...... B4 Banca Popolare di T-Mobile US...... B3 H-J Milano...... C3 Twitter...... B4,C2 Banco Popolare...... C3 Hershey...... B1 U Bank of America...A2,C3 Hunt United Parcel Black Diamond Capital Consolidated...... B5 Service...... B1,B6 Management...... B5 Instagram...... B4 UrWork...... B4 BMW...... B2 Insulated C Products...... B5 V Celtic Bank...... C2 Ionis Pharmaceuticals Verizon Communications Citic Securities...... C3 ...... B3 ...... B3 JPMorgan Chase....A2,C3 Citigroup...... A2,C3 Volkswagen...... B3 L-N Vosges Haut-ChocolatB5 BOBBY YIP/REUTERS Cnooc...... B2,C8 Cnooc, which is China’s third-largest producer of oil and gas, on Thursday posted its weakest annual earnings in more than 10 years. Cold Chain LendingClub...... C1 W Technologies...... B5 Mahan Air...... A7 Warburg Pincus...... C3 Comerica...... A1 Mars...... B1 Wells Fargo...... A1 Credit Suisse Group....C3 Merck...... B3 WeWork Cos...... B4 Cruise Automation.....B1 Microsoft...... B4 Winnebago Industries B5 Cypress Semiconductor Netflix...... B3 WPX Energy...... C2 CnoocSeeksSolaceatHome nuTonomy...... B2 ...... B1 X-Z Chinese oil firm shifts we will prioritize exploration efforts over the past few years of analysts polled by S&P D O Xerox...... B6 work offshore China,” Mr. to raise efficiency were suc- Global Market Intelligence. Denham Capital Oncor Electric Yahoo!...... B1,B4,C2,C8 its focus after years Yang said in the earnings ceeding “but safety absolutely The company responded to Management...... C2 Delivery...... B5 Zoox...... B2 of heavy investment statement. cannot be slackened.” the oil-price drop by pledging Cnooc’s new focus on core Cnooc said in its earnings to cut capital spending by in expansion abroad offshore operations at home report that its overseas oil- more than 10% this year. As a INDEX TO PEOPLE follows years of struggles to and-gas production rose 5% result, Cnooc said its oil-and- BY BRIAN SPEGELE increase production abroad, last year to 172.3 million bar- gas production would likely B-C Jacob, Richard...... C1 Reses, Jacqueline...... C2 and underlines its desire to be rels of oil equivalent, lagging shrink this year, marking its Bernanke, Ben...... C2 Jarosz, Zach...... B5 Rizzo, T.J...... B5 BEIJING—After more than a the most aggressive cost-cut- behind production growth of first annual decline since be- Bernardi, Fabrizio...... C3 K S decade of empire building in ter among China’s oil giants. about 20% at home. Output in fore it listed in 2001. Breyer, Charles...... B3 Kaplan, Robert Steven Sakhrani, Sanjay...... C1 Canada, Africa and beyond, The challenges have been Canada fell 14%, the company The steep drop in crude Bullard, James...... C4 ...... C1 Swensen, David...... C1 Chinese offshore oil-and-gas most evident in Canada, where said. prices has hurt the bottom Cheng Boming...... C3 Cnooc Kashkari, Neel...... C2 T company Ltd. is refo- Cnooc bought oil-sands pro- Much of the domestic lines of oil producers world- D Kentley-Klay, Tim...... B2 cusing on its home front. ducer Nexen in 2013 for $15 growth came from oil-and-gas wide, in particular China’s Tarullo, Daniel...... C3 de Groot, Elwin...... C4 Kocherlakota, Narayana China’s third-largest pro- billion. The company has blocks in the Bohai Bay, off state-owned oil companies Tavakoli, Faryar...... B5 Dhillon, Sunny...... B2 ...... C2 ducer of oil and gas on Thurs- struggled with cost overruns China’s northeast coast, and in that tend to be less efficient Thiam, Tidjane...... C3 Doll, Bob...... C4 L day posted its weakest annual and limited production there, the South China Sea. Analysts than their global peers. Petro- Tricoli, Carl...... C2 Dorsey, Jack...... C2 Lautenbach, Marc...... B6 earnings in more than 10 as well as an oil spill and said such domestic projects China Co., China’s largest oil V E Lee, Kai-Fu...... B4 years, hurt by a faltering array workers’ deaths that have were among the more profit- company by production, said Ennis, Richard...... C2 Liu Lefei...... C3 Valladares, Mayra of overseas projects and low drawn regulatory scrutiny. able in Cnooc’s portfolio. The on Wednesday that its 2015 Rodriguez...... C3 F Looney, Martin M...... C1 oil prices that show little sign Executives said Thursday company said operating ex- profit plummeted 67%. W of a quick recovery. that after a January explosion penses for its Chinese opera- However, Cnooc’s setbacks Feroli, Michael...... C2 M-N Filo, David...... B4 Mao Daqing...... B4 Wang Dongming...... C3 In response, Chairman Yang that killed two workers at the tions were about $8 per barrel best illustrate the complica- Fisher, Richard...... C1 Mayer, Marissa.B1,B4,C8 White, Mary Jo...... C8 Hua said state-controlled company’s Long Lake oil-sands of oil equivalent last year, tions Chinese oil companies Winston, Michael...... B4 Cnooc is turning its attention project in northern Alberta, it compared with nearly $13 for have faced overseas, particu- H Miller, Bobby...... B1 Nouy, Danièle...... C3 Y to China after years of heavy had cut production there to overseas projects. larly as many scooped up as- Harker, Patrick...... C2 spending to develop a global one-third of its original 50,000 Cnooc said its net profit in sets in expensive deals when P Yahya, Sami...... C2 Hoenig, Thomas...... A2 presence and tap unconven- barrel-a-day capacity during 2015 slumped 66% to 20.25 oil prices were near their peak Padoan, Pier Carlo...... C3 Yellen, Janet...... C1 Hunt, Ray L...... B5 tional energy reserves, such as an investigation of the blast. billion yuan ($3.11 billion), its a few years ago. Those chal- Hurley, Mary Ann...... C4 Plosser, Charles...... C2 Z the tar-like oil sands of Can- In a briefing with reporters, worst tally since 2004. The re- lenges will persist if oil prices J R Zampedri, Eric...... B5 ada. Mr. Yang emphasized opera- sults, however, beat the 18.1 continue to hover around $40 Jackson, Eric...... B4 Raines, Paul...... B4 Zhang Youjun...... C3 “In the area of exploration, tional safety, saying Cnooc’s billion yuan average forecast a barrel.

down from its peak of 5.6 mil- petitive semiconductor indus- making machines at an exist- flat NAND for storage—a PLAYBOY lion in 1975, according to Alli- CHIP try. ing facility in Dalian, China. “parking lot” compared with ance for Audited Media. XMC is starting years be- China’s interest in memory 3D NAND’s “multistory deck,” Over the past few years, hind industry leaders like Ko- chips became apparent last as XMC Chief Executive Simon Continuedfromthepriorpage Playboy Chief Executive Scott Continuedfromthepriorpage rea’s Samsung Electronics Co., year with Tsinghua Unigroup’s Yang has described it. other assets such as the 5-acre Flanders has cut costs and translates as Wuhan New Chip and memory chips are a pun- investment efforts. The state- Samsung has pioneered an Playboy Mansion, a sprawling shrunk head count after taking Integrated Circuit Manufactur- ishing business for also-rans run company attempted to ac- approach of stacking layers to Los Angeles home that it re- over as the company’s top ex- ing Co., was set up by the Hu- due to heavy investment quire U.S. memory-chip maker make the chips more efficient, cently put up for sale. ecutive in 2009 for Christie bei provincial government and costs and the need for scale. Micron Technology Inc. and in- and others have followed, in- As Playboy shopped the Hefner, Mr. Hefner’s daughter. its capital city Wuhan in 2006 Taiwan has poured billions of vest in Western Digital Corp., cluding Intel and Micron in the mansion, bidders for the The company has endeav- as a “major strategic invest- dollars into DRAM produc- U.S. Bernstein Research’s Mr. whole company emerged, ored to attract a younger audi- ment project” with a more tion for more than a decade Newman said Samsung is the prompting the company to en- ence as its brand of hedonism, than $1.5 billion investment, without success, resulting in Semiconductors only 3D NAND maker produc- list Moelis to consider an all- with “bunnies” and “play- according to a government many companies being bought have become a ing in volume, though as the out sale on a separate track, mates,” became increasingly website. The Hubei Province out by their rivals. target for Chinese chips become cheaper to pro- the people said. outmoded. The cover of the Technology Investment Corp. “I’m not optimistic” about duce than regular NAND this Moelis is expected to run March 2016 issue, the first is its sole owner. It primarily XMC’s chances, said Mark policy makers. year there will be rapid adop- an auction for Playboy. It is print edition to eschew nudity, makes a different variation of Newman, a managing director tion. possible the company will was a visual ode to the mobile flash memory called NOR. at Bernstein Research. “XMC There are varying proficien- choose to sell itself in pieces app Snapchat, designed to Many of its top executives pre- has very little technology in which itself was seeking to ac- cies in the technology; while or not sell at all and stay on look like one of the service’s viously worked at China’s main memory. They will be years be- quire flash-memory maker Samsung is at 64 layers, ana- its current course. disappearing messages. chip contract manufacturer, hind incumbents.” SanDisk Corp. Neither deal lysts say XMC is at 8. An XMC For six decades, Playboy Mr. Hefner’s 24-year-old Semiconductor Manufacturing Some foreign companies panned out, in part due to spokesman declined to dis- helped shape the American son, Cooper, criticized the International Corp. have agreed to build advanced fears of U.S. government oppo- close the number of layers. discourse on sex, but in the move to remove nudity and While XMC’s latest project memory plants in China, al- sition. “As long as we start now, it past several years it has been the decision to sell the man- has the backing of the central though such investment might XMC aims to produce a is very likely for us to catch up fighting to maintain that pre- sion, and told Business Insider government, many analysts are not satisfy Beijing’s desire to next-generation flash memory and to be in the top tier,” Hong eminent cultural status amid in February that his role in the skeptical about the Chinese develop its own technology. chip called 3D NAND, which is Feng, XMC’s chief operation sliding magazine sales and a company was diminished due company’s ambitions. The chip Samsung began production at expected to become the main- officer, said in a speech in No- digital landscape that makes to a difference of vision with maker is relatively obscure, a memory chip plant in Xian, stream data storage for com- vember, according to the com- adult material widely avail- the board. and its move comes against a China, in April, while In- puting devices in coming pany’s website. able. The magazine has a cir- —Jason Bellini contributed backdrop of limited success for tel Corp. said in October that it years. Smartphones and other —Yang Jie culation of about 800,000, to this article. Chinese efforts to build a com- would introduce new chip- gadgets currently use so-called contributed to this article.

ers. “As some of the big guys Sunny Dhillon, a partner at AUTO Automotive company Silicon Valley Becomes a Hotbed look at how to build a high Signia Ventures Partners, Technology company caliber of team quickly, some which invested in Cruise Auto- of Automotive Innovation of them may explore pur- mation two years ago, said he Continuedfromthepriorpage San Francisco Car makers' outposts spring up to do research, chases,” Mr. Platshon said. backed the company after years. Self-driving vehicles can Bay talent scouting for autonomous-driving vehicles GM hasn’t confirmed the $1 watching co-founder Kyle Vogt be piloted, while driverless BELMONTBELMBE MONTNNTT and electronics know-how. billion purchase price. But any- drive an Audi around a park- ones have no driving controls. Volkswagen where in that neighborhood, it ing lot with a Sony PlayStation FREMONT “This whole autonomous- would represent a hefty pre- controller. car transition, and the compa- mium for Cruise Automation, a “I think we will see an in- nies involved, is a space that Tesla 40-person firm with no cur- creasingly acquisitive ap- is on fire,” said Mark Platshon, rent products. Valued at about proach from many of the a senior investment adviser at $90 million during a $20 mil- sleepier, established auto gi- BMW i-Ventures, a venture MENLO PARK Hyundai lion venture round about six ants around the world, who fund for German car maker months ago, the company had have turned a relative blind BMW AG. “One billion dollars BMW Google planned to sell technology that eye to consequential techno- is cheap to make sure you are General Motors PALO allowed Audi owners to retro- logical innovation over the ALTO Nissan in the game,” he said. 3 miles Ford Delphi fit those cars with driverless past decade,” Mr. Dhillon said. Industry players looking to MOUNTAIN Continental technology. But that plan was Before GM hooked up with Tesla VIEW SUNNYVALE SANTA meet demand for autonomous- CLARA scrapped as its engineers Cruise Automation, there had CALIF. Bosch Honda Elektrobit driving technologies may find San Francisco Mercedes-Benz turned their attention to been several prior moves. Toy- plenty of targets. Among Oakland Denso something else—just what is ota Motor Corp. hired the en- Zoox Toyota them: Inc., which has DETAIL SAN JOSE undisclosed. tire staff of Jaybridge Robotics been building a robot taxi with Reilly Brennan, who leads Inc., an MIT spinout doing au- San Jose Source: the companies a futuristic design; nuTonomy, Apple Stanford University’s advanced tonomous vehicles, and Ger- which tells self-driving cars THE WALL STREET JOURNAL. auto program called Revs, said man auto supplier Continental how to plan their motion; Cruise Automation has deep AG bought a 3-D laser-sensor Nauto, which is building auto- expertise in “computer vision” business from Advanced Sci- motive networking and safety on autonomous-vehicle tech- Level 4 autonomy refers to how plan their motion through and may have found a ground- entific Concepts Inc. features; and Drive.ai, which is nology than GM’s proposed a car that can drive without a the environment. Recently, the breaking way to analyze and Last year, parts maker Del- developing artificial intelli- purchase. human in all situations. firm received $3.6 million in use the huge volume of sensor phi Automotive PLC made two gence to control cars. But it may not be looking to If Zoox stays independent, funding from a handful of ven- information coming into an significant investments. It ac- Zoox, based in Palo Alto, sell anytime soon. Zoox there are other targets in Sili- ture funds. It has been work- autonomous car. quired a stake in Quanergy, a Calif., is more cloistered than founder Tim Kentley-Klay, in con Valley and elsewhere. ing an autonomous-vehicle pi- “That is expertise that is competitor to Advanced Scien- Cruise Automation; its website response to a query, NuTonomy is a Massachu- lot in Singapore. frankly very hard to obtain,” tific that is developing a low- only has a button to send said: “Zoox was born to pio- setts Institute of Technology Other startups such as he said. “The number of re- cost laser sensor. email. The company, said Mr. neer Level 4 mobility, not to spinoff working on software Nauto and Drive.ai might get searchers in this area of vehi- —Gautham Nagesh Platshon, also is further along sell out.” that tells autonomous cars more interest from auto mak- cle automation is quite small.” 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. ***** Friday, March 25, 2016 | B3 BUSINESS NEWS Netflix Throttles Some Streams Exxon

BY RYAN KNUTSON Explores AND SHALINI RAMACHANDRAN

AT&T Inc. and Verizon Taking Communications Inc. were on the defensive last week after accusations swirled they were Stake in throttling the quality of Netflix Inc. video on their wireless networks. Gas Project It turns out it was Netflix Exxon Mobil Corp. is in ad- that was doing the throttling. vanced talks to acquire a stake Netflix, a leading proponent in a large Mozambique natu- of open-Internet rules, has ral-gas project from Italy’s Eni been lowering the quality of its SpA, a sign that major oil video for customers watching its service on AT&T or Verizon By Bradley Olson, Communications wireless net- Dana Mattioli works. and Shayndi Raice The popular video service said Thursday that for more companies are again hunting than five years it has limited its for deals after energy prices video speeds to most wireless crashed in 2014. carriers across the globe, includ- The acquisition could be ing AT&T and Verizon, to “pro- announced in coming weeks, tect consumers from exceeding according to people familiar mobile data caps,” which may with the matter. discourage future viewing. Terms of the deal aren’t

Netflix said it caps its NETFLIX/ASSOCIATED PRESS clear, but one person indicated streams at 600 kilobits-per-sec- Robin Wright in Netflix’s hit ‘House of Cards.’ The popular service said it has limited video speeds to most wireless carriers. Exxon is in talks to buy a stake ond—much slower than what of around 20% from Eni, which should be possible on modern plans on Sprint or T-Mobile, don’t throttle or manipulate connection speeds were strong, Over Wi-Fi and other wired owns 50% of the development. wireless networks. It hasn’t the carriers usually slow their video content. “Verizon deliv- shows AT&T and Verizon broadband connections, Netflix previously disclosed the prac- network connections, rather ers video content at the resolu- streams are capped at lower is the largest data consumer, The Mozambique tice. The issue came to light af- than charge overage fees. tion provided by the host ser- quality. accounting for 37% of all down- ter T-Mobile US Inc.’s chief ex- Netflix has been an outspo- vice, whether that’s Netflix or Milan Milanović, who works stream Internet data traffic in offshore project is ecutive last week said Verizon ken supporter of “net neutral- any other provider,” a Verizon in the IT industry and monitors North America during peak pe- expected to be a and AT&T customers were re- ity,” the concept that all Inter- spokesman said. carrier networks as a hobby, riods, according to Sandvine, a ceiving lower-quality Netflix net traffic should be treated “We’re outraged to learn was among the first to notice, networking company that major gas supplier. streams. The carriers denied equally. It has railed against the that Netflix is apparently throt- and posted a video on YouTube tracks Internet use. throttling Netflix videos. idea that it should compensate tling video for their AT&T cus- showing the lower quality There is much less use over The fact that Netflix, not the broadband providers or mobile tomers without their knowl- streams. Mr. Milanović’s mobile networks: During peak As with all discussions over carriers, is responsible for the carriers for the amount of data edge or consent,” said Jim method was replicated by The periods, Netflix makes up just deals, timing could slip, talks lower quality illustrates the di- that its customers eat up, and Cicconi, AT&T’s senior execu- Wall Street Journal. 3.4% of all downstream mobile could fall apart at the last lemma mobile-app makers face it has been quick to point out tive vice president of external AT&T and Verizon are the data traffic, ranking it ninth. minute or the size of the stake with data caps. The majority of any sign of discrimination by and legislative affairs. two largest carriers in the YouTube is No. 1 at just over could change. all traffic on wireless networks is carriers regarding data caps. At T-Mobile, Netflix quality country. Their networks face 20%. A 20% stake in the conces- video, so providers must balance The net-neutrality rules apply is reduced when customers enormous strain from all that Netflix got into high-profile sion sold for more than $4 bil- video quality against data con- to Internet providers but not have activated Binge-On, a fea- traffic. If several thousand fights with home Internet pro- lion in 2013, before energy sumption. Watching two hours content companies like Netflix. ture that lets them stream un- people in one area start viders in 2014. The company prices tumbled, would be a of HD video on Netflix would On Thursday, Netflix said it limited video from video pro- streaming high-definition Net- had accused Internet provid- drop in the bucket for Exxon, consume up to 6 gigabytes of is also exploring “new ways to viders at lower quality. Sprint flix videos, speeds for all users ers of refusing to connect which has a market value of data, Netflix says. That is an en- give members more control in used to throttle almost all in the area could be reduced their networks directly to its around $350 billion. tire month’s allowance under an choosing video quality.” It is video traffic on its network, but from congestion. specialized video servers for The Mozambique Area 4 $80 a month Verizon plan. working on a mobile “data after disclosing the practice Jan Ozer, a consultant who free, which it said resulted in offshore development is ex- Netflix said it doesn’t limit saver” to be rolled out in May last year, it was forced to stop helps companies optimize on- buffering and lower video pected to become a major its video quality at two carri- that would allow consumers to because of public outcry. line video, said Netflix’s strat- quality for consumers. Netflix global supplier of liquefied ers: T-Mobile and Sprint Corp., “stream more video under a Netflix has a video on its egy is a smart one. “If they eventually settled those dis- natural gas. because “historically those two smaller data plan, or increase website that includes real-time were upfront about it, they putes by paying Internet pro- Eni has said Area 4 may companies have had more con- their video quality if they have data on the quality of the video could say, ‘We’re trying to viders for direct connections hold 85 trillion cubic feet of sumer-friendly policies.” When a higher data plan.” stream. Watching that video on make sure our users don’t con- into their networks, thus re- gas. customers exceed their data Verizon and AT&T said they all four carriers, even when sume all their bandwidth.’ ” ducing bottlenecks. The Italian company estimates it may hold enough gas to meet U.S. residential consumption for nearly two decades. Gilead to Judge Gives VW a Reprieve for Fix For Exxon, the assets would represent an important move BY SARA RANDAZZO toward adding to oil-and-gas Pay Merck reserves with acquisitions dur- A federal judge gave Volks- ing the downturn in oil prices, wagen AG another month to a step many analysts have ex- In Drug come up with a fix for its die- pected it would take as prices sel-powered cars that violate fell. U.S. emissions standards after Last year, the Irving, Texas- Patent Suit the German auto maker failed based company was only able BY RON WINSLOW to meet the judge’s initial to replace about two-thirds of deadline. the oil and natural gas it pro- A federal jury in California An attorney for Volkswagen duced, the first time that has ordered Gilead Sciences Inc. to said at a hearing Thursday in happened in 22 years. pay Merck & Co. and a partner San Francisco that engineers The Mozambique project in- $200 million for infringing two are working “around the volves separate natural-gas Merck patents in a case involv- clock” on a fix for some discoveries in the Indian ing Gilead’s two blockbuster 600,000 vehicles sold in the Ocean that a host of compa- drugs for treating hepatitis C, U.S. that Volkswagen has ad- nies want to exploit. Merck said Thursday. mitted it equipped with soft- Eni and Anadarko Petro- The award follows the jury’s ware that tricks emissions leum Corp. made the original decision on Tuesday upholding tests. discoveries in the area and the validity of two patents held U.S. District Judge Charles agreed last year to coordinate by Merck and its partner Ionis Breyer, who is overseeing con- development that is likely to Pharmaceuticals Inc. that solidated civil litigation stem- cost in the tens of billions of Merck says should entitle the ming from the scandal, said a dollars. companies to a portion of the “concrete proposal” needs to Anadarko owns a 26.5% sales of Gilead’s drugs Sovaldi be made by April 21. That working interest in Area 1, and Harvoni. could include a regulator-ap- which is a separate tract not

Last year, Gilead recorded a proved technical fix that al- PATRICK T. FALLON/BLOOMBERG NEWS included in the Eni deal under combined $12.5 billion in U.S. lows the cars to stay on the Court gave Volkswagen until April 21 to produce a ‘concrete proposal’ to fix its diesel emissions. discussion with Exxon Mobil. sales from the two drugs, road, a buyback plan, or other Area 1 could hold as much which notched a total of $19.1 remedies. Breyer said he would consider he has been waiting for a solu- though engineering technicali- as 75 trillion cubic feet of gas. billion in global sales. “Whatever the proposal, by a request by plaintiffs’ lawyers tion long enough. ties and other roadblocks still Partners there include Japan’s “We are pleased that the April 21st it must be specific to set a summer trial date, po- “I’m paying a high price for need to be resolved. Mitsui & Co. Anadarko isn’t a jury recognized that patent and detailed,” said Judge tentially allowing him to dic- a car that has no value,” he “My eight-year-old doesn’t partner in Area 4. protections are essential to Breyer, who had earlier set a tate how the company should said, adding he would like the like the case much,” Volks- The projects come at a dif- the development of new medi- March 24 deadline for the auto deal with its cars. company to buy back the car wagen lawyer Robert Giuffra ficult time for Anadarko and cal treatments,” Merck said. maker to propose a solution. More than 500 civil law- for the amount he paid. “I said, after noting that the past Eni. As oil and gas prices have “The compounds and methods “Volkswagen is committed suits from around the country want the lost value so I can month was one of the busiest plunged, Anadarko has said it at issue in this case facilitated to resolving the U.S. regula- have been consolidated in the get away from Volkswagen.” in his career. “He says daddy’s would cut spending by almost significant advances in the tory investigation into the die- San Francisco court through a In San Francisco, Judge never home.” half, complicating its ability to treatment of patients with sel emissions matter as process called multidistrict lit- Breyer said he would be look- Volkswagen-brand car sales advance the Mozambique de- HCV infection, and achieving quickly as possible and to im- igation, which aims to streaming to former Federal Bureau have plummeted in the U.S. velopment. these advancements required plementing a solution for af- line pretrial discovery. of Investigation director Rob- Last fall, the auto maker Both companies have yet to many years of research and fected vehicles, as we work to Volkswagen said in a court ert Mueller, who is working as stopped sales of affected die- make a final investment deci- significant investment by earn back the trust of our cus- filing this week that it is “pre- a court-appointed settlement sel vehicles in the U.S., and in sion on the project. It is un- Merck and its partners.” tomers and dealers and the mature” to set such a quick master to help Volkswagen, the ensuing months has come clear how a potential Eni stake Gilead said Merck didn’t public,” a company spokes- trial date, noting it needs plaintiffs’ lawyers and regula- under scrutiny from lawmak- sale would impact the funding contribute to the development woman said in a statement. enough time to gather docu- tors come to an agreement, ers and government officials picture for Anadarko. of the drugs and “assumed Plaintiffs’ attorney Eliza- ments, take depositions and for regular updates during the who say Volkswagen isn’t The backing of Exxon, none of the risk” in the dis- beth Cabraser said the parties develop a defense. next month. moving fast enough to fix ve- which has a AAA credit rating covery of sofosburvir, the key are “redoubling efforts” to Ernie Weber, an Illinois The judge noted that he hicles already on the road. and recently sold $12 billion in active ingredient in both med- meet the April deadline. man who bought a $27,000 was told “substantial prog- The auto maker faces crimi- bonds to build its acquisition icines. “We do not believe If no substantial progress diesel-powered Passat last ress” has been made since a nal investigations in the U.S. war chest, could be a lifeline Merck is entitled to any has been made by then, Judge year for its fuel economy, said status hearing last month, and Germany. for Eni as it seeks to make the amount of damages,” Gilead discovery viable. said. “We continue to believe Exxon is said to have an the Merck patents are invalid.” interest in becoming an oper- If the judge upholds the American Airlines to Raise Pay 6% for Attendants ator in the development, jury’s verdict, Gilead said it people familiar with the mat- would appeal. BY LISA BEILFUSS wage increase for its main- fering such a program since it on part of Chief Executive ter said. The award covers sales of land flight attendants, effec- merged with US Airways in Doug Parker’s promise on Deal making in the energy the two drugs up to Dec. 31, American Airlines Group tive April 1. 2013, preferring instead to in- Wednesday. industry has been relatively 2015. Merck said the court will Inc. on Thursday said it would The pay boost comes a day crease employees’ base pay. In a memo, he told employ- muted because of the down- hold a separate hearing to raise pay for its flight atten- after American, the largest Other large carriers, how- ees that while the 5% profit- turn in oil and gas prices. consider royalties Gilead dants by about 6%, a move U.S. airline by traffic, said it ever, offer the perk, and the sharing rate is lower than The largest energy deal so would owe on sales beginning that comes on the heels of a would reverse course and of- flight attendants union at that paid by American’s ri- far this year is TransCanada Jan. 1. decision to allow employee fer a program paying 5% of American has pressed for the vals, the carrier would offer Corp.’s agreement to buy Co- The patent trial began ear- profit-sharing. pretax profit to all non-man- program. higher hourly pay rates than lumbia Pipeline Group Inc. lier this month in U.S. District In a regulatory filing agers based on this year’s Thursday’s move to push those same peers in contracts for $10.2 billion. Court Northern District of Cal- Thursday, the airline said it earnings. up the wage increase for being negotiated now and in —Eric Sylvers ifornia in San Jose. would accelerate a future The airline had resisted of- flight attendants makes good the future. 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 B4 | Friday, March 25, 2016 ** THE WALL STREET JOURNAL.

TECHNOLOGY @wsjd | wsjd.com GameStop Delivers Glum Outlook Microsoft Muzzles Videogame retailer’s revenue rose 1.4% in Artificially its latest quarter, but outlook disappoints Intelligent

BY DREW FITZGERALD AND EZEQUIEL MINAYA Chatbot

Videogame retailer BY JAY GREENE GameStop Inc. posted higher- than-expected earnings for its Less than one day after Mi- fiscal fourth quarter but is- crosoft Corp. released Tay, an sued dour outlooks for its cur- artificially intelligent software rent quarter and fiscal year. chatbot that communicated The Grapevine, Texas, com- through messages on social pany said overall sales would media services, the program fall between 4% and 7% in the went rogue. current quarter, with same- On Wednesday, Microsoft’s store sales slipping between research arm launched the 9% and 7%. GameStop said it software on services run by expects earnings per share of Twitter Inc., Facebook Inc., between 58 cents and 63 cents. Snapchat Inc., and Instagram. Analysts surveyed by Hours later, it started spewing Thomson Reuters had ex- anti-Semitic rants, which pected earnings of 71 cents a Twitter users collected and share on a 1% sales gain. posted on social media. Its shares dropped more One tweet from Tay, whose than 6% to $28.39 in after- persona was intended to mimic hours trading. the voice of an American For its 2016 fiscal year, the woman aged 18 to 24, read, company expects per-share “Hitler was right I hate the earnings of between $3.90 and Jews.” Another, in response to a

$4.05 and revenue to be flat to MICHAEL NAGLE/BLOOMBERG NEWS question about the Holocaust, up 3%. Analysts expect earn- The videogame retailer has been expanding revenue by moving into digital downloads and sales of collectibles at namesake outlets. said “it was made up,” followed ings of $4.08 a share and a by a hand-clapping emoji. revenue increase of 3%. said the company would prob- lion-dollar businesses inside lion, or $2.36 a share, com- The company had earlier Microsoft silenced Tay on GameStop spent the past ably keep closing GameStop the GameStop stores,” Mr. pared with a year-earlier said sales for the quarter would Thursday morning and erased year bulking up its other store locations at the same 2% rate Raines said, referring to the profit of $244.1 million, or be in the range of $3.5 billion virtually all of its tweets. The brands, which include Simply it has been booking over the digital downloads and collect- $2.23 a share. Excluding cer- to $3.55 billion, with EPS of be- latest tweet suggested that Mac for Apple Inc. electronics past year, though he said the ibles sold at physical stores. tain items, profit rose to an tween $2.19 and $2.25. Tay will be offline for a bit. and Spring Mobile, an AT&T brand itself is becoming more Overall, for the quarter adjusted $2.40 a share from Sales at comparable stores “c u soon humans need Inc. wireless-phone reseller. profitable. ended Jan. 30, GameStop re- $2.15 a year earlier. Revenue grew 3.1%. The sales were ex- sleep now so many conversa- Chief Executive Paul Raines “We’ve created two new bil- ported a profit of $247.8 mil- rose 1.4% to $3.52 billion. pectedtogrow2.5%to4%. tions today thx,” it read. Microsoft blamed the tweets on users who fed Tay offensive comments in a delib- Innovation Sputters as Chinese Growth Engine erate campaign to prompt similar responses. “Unfortunately, within the 2008 financial crisis. “So first 24 hours of coming online, ang Binglong’s attempt many incubators, so few we became aware of a coordi- Y to start a technology startups,” is a common re- nated effort by some users to incubator in a Shen- frain among veteran incuba- abuse Tay’s commenting skills zhen basement offers a wor- tor and startup founders. to have Tay respond in inappro- rying signal for China’s effort Zhang Yonghong, founder priate ways,” Microsoft said in to turn to innovation to re- of incubator Yuanquanhui in an emailed statement. “As a re- kindle its economy. Shenzhen, says some smaller sult, we have taken Tay offline Last August, when Mr. incubators and shared-office and are making adjustments.” Yang launched D-Lab, a spaces probably will have to The artificial intelligence nearly 11,000- close eventually because created for Tay was designed square-foot many are empty and will re- “to engage and entertain peo- shared-office main so. Kai-Fu Lee, a former ple where they connect with space designed Google and Microsoft Corp. each other online through ca- to cultivate executive who in 2009 sual and playful conversation,” startups, he founded one of China’s earli- according to the Microsoft Web CHINA told a technol- est incubators, China’s Inno- page announcing its arrival. CIRCUIT ogy blog that vation Works, says only Users were able to elicit of- LI YUAN he wanted to about 5% of incubators in fensive replies by getting the provide a place China have the capacity to software to repeat much of where entre- provide funding and high- what was tweeted at it. preneurs and investors could quality services that can help The campaign to sabotage mingle easily and open up to startups to grow. Tay appears to have been coor- each other. The 26-year-old He says the business isn’t dinated by the 4chan and 8chan worked long hours trying to often a good fit for govern- anonymous message-board

find and woo startups and DING LIN/XINHUA/ZUMA PRESS ment. “There are very few websites. There, users figured hosted networking events Premier Li Keqiang at a Beijing high-tech hub last year. There is a proliferation of such facilities. successful examples of gov- out how to get Tay to respond with wine and Chinese hot- ernment-run incubators with obviously objectionable pot meals, according to his China’s economic slowing growth as traditional spaces in San Francisco are around the world,” he says. statements, and gleefully social-media posts. growth. Many are imitating manufacturing and export listed on the CoWorking “Behind the prosperity of crowed about their successes. Five months later, D-Lab U.S. startup WeWork Cos., sectors slump. Wiki, where many operators innovative hubs lies risks and On an 8chan thread filled remained largely empty while which this month raised Governments, central and list information. dangers,” the China Associa- with anti-Semitic comments, the slowing economy about $430 million in a fund- local, are offering subsidies, It isn’t always clear what tion for Promoting Democ- one poster wrote Wednes- weighed on startup funding ing round led by Chinese in- tax breaks and other favor- the government means in racy, an official group that day that “We need to turn the and an increasing number of vestors and is itself entering able policies to encourage touting the desire for innova- plays a consultative role to competitors came to the the China market. the development of what of- tive hubs. The business the ruling Communist Party, Microsoft blamed market. In January, he an- In his annual government ficials call “innovative hubs.” model for incubators, which warned in a policy proposal nounced on social media that work report this month, Pre- Beijing offers as much as five offer mentorship, administra- at this month’s annual legis- the hurtful tweets on D-Lab had burned through mier Li used the word “ch- million yuan ($770,300) in tive services and sometimes lative session. The proposal users who fed Tay one million yuan ($150,000) uangxin,” or “innovate,” 65 subsidies a year to each qual- funding in addition to office urges governments at all lev- and was subletting its lease. times, up from 38 times last ified startup and incubator. space, is quite different from els to more accurately evalu- offensive comments. Mr. Yang says he now works year, and “chuangye,” or Guiyang, the capital of Gui- that of shared-space opera- ate development of these for a small investment bank “start businesses,” 22 times, zhou, one of China’s poor- tions, where individuals and spaces and let the market in Shenzhen. He confirmed up from 13 times last year. est provinces, offers to cover companies pay membership dictate growth. The associa- bot into a holocaust denier.” the subletting but declined to “Innovation is the primary full rent for incubators and fees or rent. Some experi- tion says it didn’t get any re- And a minute later, another comment further. There driving force for develop- startups that move to its enced incubator executives, sponse during the parliamen- replied, “It already likes Hit- aren’t comprehensive statis- ment and must occupy a cen- high-tech zone in their first venture capitalists and tech tary sessions. The majority of ler.” A little later, when it be- tics on the number of incuba- tral place in China’s develop- year, 70% in their second entrepreneurs worry that the shared-office spaces came clear that Tay would re- tors and shared-office spaces ment strategy,” Mr. year and 30% in their third. those jumping into these won’t be able to make a spond with offensive tweets, like D-Lab, but industry exec- Li’s report said, adding that, Tianjin, east of Beijing, businesses don’t fully under- profit from simply renting an 8chan poster wrote, “This utives estimate thousands of “We should make consistent aims to build 100 innovative stand them either. They fear out desks, says Mao Daqing, has so much potential.” them have sprouted across efforts to encourage the pub- hubs by the end of this year the rapid growth risks caus- founder and chief executive 4chan didn’t immediately China since early last lic to start businesses and in- while Suzhou, near Shanghai, ing overcapacity of startup- of UrWork, a WeWork-type respond to a request for com- year, after Chinese Premier Li novate.” It is an understand- plans to build over 300 incu- friendly space—much like the business in China. ment. 8chan couldn’t be Keqiang visited some of them able long-term goal, but the bator-style entities by 2020, ghost cities and now-de- reached for comment. in Shenzhen and Beijing and government also seems to be according to the local gov- serted steel mills that were Follow Li Yuan on Twitter Although recent advances in touted innovation and start- promoting startups and inno- ernments’ websites. By com- built with the government @LiYuan6 or write to artificial intelligence are prom- ups as the new engine of vation as a short-term fix to parison, only 44 co-working stimulus funds after the [email protected]. ising, the effort to imbue computers with “intelligence” has a history of creating public-rela- for board members as they try Starboard is arguably more Playing a role in the out- holder campaign that could tions issues for companies YAHOO to sort through bids. qualified for this battle than come will be David Filo, a co- cost her her job. She has spo- when things go awry. In May, For it to succeed, Starboard any other fund is. In 2014, it founder and director of the ken of a three-year plan to Yahoo Inc.’s photo service, would need to convince other ran a successful campaign to company, who owns a 7.5% turn the company around in- Flickr, made its debut software ContinuedfrompageB1 shareholders that it is better unseat the entire 12-person stake and is its largest share- volving the improvement of designed to automatically tag established for them to exam- placed to run the company if a board of Olive Garden parent holder. Mr. Filo has appeared services people use on their objects in photos, such as cars ine the company’s books, ac- sale doesn’t happen. Starboard’s Darden Restaurants Inc. that loyal to Ms. Mayer in her ten- mobile phones, such as search. or dogs. But the service also cording to a person familiar nine director nominees have a included a now-famous pre- ure at the company. The next Michael Winston, a Yahoo tagged a black man with the with the matter. wide swath of experience, from sentation with 300 slides. 20 holders, including Star- investor who runs hedge fund word “ape” and a picture of a Starboard has raised con- deal-making to media-and-tech- Along with proposed financial board, control about 38% of Sutton View Capital LLC, wor- concentration camp as a “jun- cerns about the urgency of the nology company management. and operational changes, the the stock, according to filings. ries Ms. Mayer may try to im- gle gym.” Similarly, the auto- process and whether the board The New York fund has long presentation included details Most shareholders can only pede the auction process. tagging feature from Alphabet is fully open to selling. suggested steep cost cuts and about the length of straws at vote on a single ballot, unless “Enough is enough. It’s Inc.’s Google caused embar- A Yahoo spokesman de- urged Yahoo to focus its busi- Olive Garden and the process they physically attend the been too long,” said Mr. Win- rassment a month later when it clined to comment. ness on search, but so far given for serving breadsticks. meeting. That means share- ston. “We support Starboard mislabeled a photo of a black Starboard’s unveiling of its scant details of its vision. With a current market holders can’t mix and match fully.” man with the word “gorilla.” long-awaited proxy fight, con- “Let’s be wooed,” said Eric value of $8.4 billion, Darden is some Starboard nominees At Yahoo’s headquarters in At that time, a Yahoo spokes- firming a report by The Wall Jackson, managing director of the biggest company to have with some existing board Sunnyvale, Calif., layoffs and person said the company had re- Street Journal late Wednesday, SpringOwl Asset Manage- its entire board swept out. If members for their favorite 9- uncertainty have sucked mo- moved the incorrect tags and raises the question of whether ment LLC, which has a Yahoo its stock is any guide—up 49% director slate and that the rale. Some employees com- said Yahoo allows users to exit could complicate a sale. Bid- stake among its $300 million since Starboard took control most likely outcomes are com- plained when they discovered empt their photos from autotag- ders would be negotiating in assets and has criticized Ms. in 2014—the fund’s prescrip- plete victory or defeat for the one casualty of new austerity ging. Google said, “We’re ap- with a board that may not last Mayer. “We are not throwing tion for the restaurant owner activist. measures last week: no more palled and genuinely sorry through the sales process. Bat- our support behind Starboard has worked. Ms. Mayer, meanwhile, has sushi in the campus cafeteria. about what happened. We took tling for their positions could immediately. I would love to But Yahoo is a much bigger to run the business amid both —Dana Mattioli immediate action to prevent this also prove to be a distraction hear more from Starboard.” and complicated target. a sales process and a share- contributed to this article. type of result from appearing.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. ***** Friday, March 25, 2016 | B5 BUSINESS NEWS Oncor Sale Gets New Limits Set on Silica Dust

BY MELANIE TROTTMAN are realized, each year it will workers are allowed to have to dust. That could include engi- Texas Approval save more than 600 lives and silica. Labor Department offi- neering controls, such as keep- The Obama administration prevent over 900 new cases of cials say scientific research ing materials wet to prevent BY PEG BRICKLEY cant and important develop- issued a long-awaited regula- silicosis, an incurable lung dis- the agency has been studying dust from becoming airborne ment” in a memo to employ- tion Thursday to lower work- ease caused by inhaling tiny shows current silica limits or having vacuums that pull One of the biggest deals ees, adding other steps remain ers’ exposure to a potentially bits of silica that can swell the aren’t adequately protective. the dust from breathing zones. ever to grow out of a bank- before it could emerge from deadly dust commonly found lungs and lead to respiratory The new limit for all indus- If those steps don’t suffice, ruptcy case, the $17 billion bankruptcy. in construction and manufac- failure. The dust has also been tries affected by the rule will employers will have to use buyout of Energy Future Leading the transaction is turing materials, completing a linked to lung cancer and kid- be 50 micrograms per cubic respirators in addition. They Holdings Corp.’s electricity Hunt Consolidated Inc., which decadeslong effort that is ney disease. meter of air, averaged over an will also have to limit worker transmission business, Oncor, wrangled the deal through the likely to become one of the ad- Much of the business com- eight-hour shift. That is half access to areas where there cleared a major hurdle on regulatory process. Now the ministration’s signature work- munity has opposed the rule the current exposure limit for are high levels of dust and Thursday with approval by company, part of Texas billion- place health and safety initia- as too costly and not justified provide medical exams to Texas regulators. aire Ray L. Hunt’s energy and tives. by the risk. Much of the monitor those who are highly The Public Utility Commis- real-estate empire, will take The rule sets new exposure The rates of silica deaths exposed. sion of Texas found the pro- that order on a roadshow to limits on crystalline silica, a and injuries have already business community The Labor Department esti- posed transaction in the public convince investors that Oncor dust found in rock, sand and dropped dramatically under has opposed the new mates the rule will result in interest. Commissioners piled is still a good buy. The inves- other materials used in indus- the existing regulations set 45 net benefits of about $7.7 bil- on the conditions, however, tors include Anchorage Capital tries such as construction, hy- years ago, thanks in part to rule as too costly. lion a year and have annual- and investors that jumped on Group, Avenue Capital Group, draulic fracking of oil and gas steps employers have taken to ized costs of $1,500 for the av- board as part of Energy Fu- Centerbridge Credit Advisors, wells, glassmaking, and improve dust levels, such as erage workplace—or less for ture’s chapter 11 case have un- mutual fund giant Fidelity In- foundry work. using respirators and other general industry and mari- smaller employers. The busi- til June 30 to decide whether vestments and Teacher Retire- The Labor Department’s Oc- types of personal protective time—and five times more ness community says the costs to go through with the buyout. ment System of Texas. cupational Safety and Health equipment, business groups stringent than the current will be much higher. Most of the money backing A Hunt spokeswoman said Administration, which issued say. level for the construction in- The agency will stagger the Oncor Electric Delivery the company would continue the regulations after propos- “The new OSHA regulation dustry. compliance dates so certain Co. takeover comes from cred- to work “over the coming ing them in 2013, said silica is neither technologically nor For decades, there has been industries, such as fracking, itors of Energy Future, which months to reach a successful exposure is a threat to about economically feasible,” said no explicit requirement for will have extra time to install filed for bankruptcy loaded closure of the transaction.” 2.3 million U.S. workers, most Marc Freedman, the U.S. employers to take dust sam- new engineering controls. with $42 billion in debt from At stake is the outcome of of them in the construction in- Chamber of Commerce’s Exec- ples from workplaces and have Employers covered by the the 2007 private equity buy- Energy Future’s bankruptcy dustry and tens of thousands utive Director of Labor Law labs measure the exposure lev- construction standard will out of the former TXU Corp. case, which began in April in high-risk jobs, such as rock Policy. els, though many have done it have until late June of 2017 to Oncor wasn't part of the bank- 2014. The sale of Oncor is a drilling, stonecutting and The Labor Department said anyway, OSHA officials said. meet most of the require- ruptcy case, but Energy Future key part of Energy Future’s abrasive blasting. the rule will improve workers’ Employers will be required ments, while those in the gen- is appeasing creditors, in part, chapter 11 exit plan. If the deal The agency estimates that lives by cutting in half the ex- to use one or more of a variety eral industry and maritime will with the opportunity to buy falls through, Energy Future once the full effects of the rule isting exposure limits many of methods to control the have until late June of 2018. its majority stake in the heads back to bankruptcy power-distribution unit. court and Oncor could find it- Energy Future called the self the focus of a bankruptcy regulatory approval a “signifi- bidding war. Children’s Books Prop Up Scholastic

BY ANNE STEELE “Given the strength in children’s books, Scholastic is Scholastic Corp. narrowed making additional investments its loss in its third quarter, to support a growing frontlist with results handily beating of exceptional titles, authors Wall Street expectations, and licensed properties,” he largely driven by strong sales said. in children’s books. For the third quarter ended The publishing house typi- Feb. 29, Scholastic reported a cally records a loss in its third loss of $9 million, or 26 cents quarter, which is a lower-reve- a share, compared with a loss nue period. of $22.1 million, or 68 cents, a Scholastic, which publishes year earlier. the “Harry Potter” series, Excluding certain items, the pointed to strong performance per-share adjusted loss fell to from the full-color illustrated 6centsfrom33cents. edition of “Harry Potter and Revenue rose 5.6% to $366 the Sorcerer’s Stone” and million. Harry Potter-themed coloring Analysts polled by Thom- books, as well as higher school son Reuters had forecast an reading-club order volume and adjusted loss of 35 cents a

higher sales of classroom share on $352.9 million in rev- DANIEL ACKER/BLOOMBERG NEWS books and magazines. enue. Rings from Zale. Signet, which bought rival Zale in 2014, issued upbeat guidance for the year as its fourth-quarter earnings rose 19%. Chief Executive Richard Despite challenges interna- Robinson said the company is tionally brought on by the positioned for further growth stronger U.S. dollar, Scholastic in children’s books with a affirmed its guidance for 2016 Retailer Signet Posts Rise in Sales strong pipeline of new trade sales of $1.65 billion and earn- titles, including the recently ings, excluding items, of about BY ANNE STEELE Bermuda-based Signet in ended Jan. 30, Signet reported les up 6.3% and Jared up 1.4%. announced script book “Harry $1.35 a share. 2014 struck a $1.46 billion deal a profit of $271.9 million, or The company had forecast Potter and the Cursed Child,” Shares were up 0.5% on Signet Jewelers Ltd. on to buy rival Zale Corp., a move $3.42 a share, up from $228 same-store sales growth of 4.6% and in the education segment. Thursday. Thursday said its quarterly that resulted in one of the larg- million, or $2.84, a year earlier. to 5%. profit rose 19%, beating expec- est global specialty jewelry re- Excluding certain items, ad- Gross margin expanded 2.4 tations, and the retailer issued tailers. justed earnings rose to $3.63 a percentage points to 42.5%. most cold shipments to con- upbeat guidance for the year. In addition to the Signet and share. Signet shares, which have CANDY sumers. Online sales made up For the current year, Signet Zale brands, Signet operates The company had forecast slipped 1.4% over the past three 20% of the company’s $26 mil- expects earnings of $8.25 to stores under the Kay Jewelry adjusted earnings in the range months, were up 2.9% Thursday. lion in revenue last year. $8.55 a share, compared with and Jared monikers, among of $3.54 to $3.60 a share. Reve- Signet’s report follows a dis- ContinuedfrompageB1 Vosges imposes a $10 ship- analyst estimates of $8.25. others. nue increased 5.1% to $2.39 bil- appointing quarterly report U.S.A. Inc. “If they have to pay ping surcharge for cool ship- For the current quarter, Sig- Chief Executive Mark Light lion. Analysts projected $2.41 from fellow luxury jeweler Tif- someone to pick a product [off ping on online orders, which it net expects earnings of $1.90 to said the integration of Zale billion in sales, according to fany & Co. last week. Tiffany a shelf], put it in a car, and says are growing much faster $1.95 a share, bracketing esti- “continues to go well,” and “we Thomson Reuters. said comparable-store sales and drive it to someone’s house, than sales at its six boutiques. matesof$1.93. see an expanded and acceler- Total sales at stores open at profit fell in its fourth quarter all their margin just went out The company is experimenting Same-store sales are ex- ated level of financial contribu- least a year rose 4.9%, driven by and warned that profit in its the door. They can’t make with different combinations of pected to grow 3% to 4% in the tion” as the companies join. diamond fashion jewelry, with current quarter would be worse money doing that,” he said. gel packs and dry ice, trying to quarter. For the fiscal fourth quarter sales at Kay stores up 7.4%, Za- than expected. Last month, Hershey ac- reduce shipping costs. “The cepted final entries in a com- biggest hurdle is…maintaining petition with a $25,000 prize that balance of what the cus- cents a share, in the year-ago pe- for whoever designs the light- tomer is willing to pay for, and Business riod. Revenue declined to $225.7 est, most-affordable packaging how to ship it to them in the million from $234.5 million. to keep chocolate from melt- best condition possible,” said Watch Analysts polled by Thomson ing for at least 48 hours. Zach Jarosz, Vosges’s supply- Reuters had expected 33 cents “We were talking about it, chain planning manager. in per-share profit on $233 mil- and our e-commerce team The most effective cool- lion in revenue. said, ‘We need to find a better shipping technology is a box —Joshua Jamerson solution,’” said Eric Zampedri, made of vacuum-sealed panels, a packaging engineer in Her- said Faryar Tavakoli, an engi- APPLE ACCENTURE shey’s research and develop- neer at Insulated Products ment office. “If we can reduce Corp. in Rancho Dominguez, Show About Apps Consulting Company the cost for us, we can reduce Calif. But even a small “VIP” Planned for TV Box Beats Expectations it for consumers too.” box costs about $200, and is Apple Inc. is expanding its ef- Accenture PLC raised its guid- U.S. online chocolate sales practical only for high-value forts in original video program- ance for the year after the con- rose more than 80% between goods, such as medicines. ming, announcing its first show sulting company easily topped 2010 and 2015, to $341.7 mil- Bulky foam coolers are less ef- for its Apple TV box. expectations in its latest quarter.

lion annually, according to fective and still too costly for Apple said it is working with DANIEL ACKER/BLOOMBERG NEWS The Dublin-based company has data provider Euromonitor In- mass e-commerce, he said. musical artist will.i.am and tele- Winnebago Industries posted a 16% rise in quarterly earnings. worked to shift its business to ternational, and e-commerce Barring a breakthrough, vision executives Ben Silverman digital, cloud and security services. represented 1.9% of all choco- chocolate makers must choose and Howard Owens on an un- tal Signs,” is expected to be WINNEBAGO INDUSTRIES For the year, Accenture now late sales in 2015, up from whether to buy special pack- scripted program about apps. based loosely on Dr. Dre’s rags- expects to earn an adjusted $5.21 1.2% five years earlier. aging to insulate their prod- The company declined to provide to-riches story. Lower Costs Help to $5.32 a share, up from its pre- To fill online orders, which ucts, or pay for overnight other details such as when the —Daisuke Wakabayashi Bolster RV Maker vious forecast of $5.09 to $5.24. it says grew 80% last year, shipping, which would reduce shows will air or how people will Winnebago Industries Inc.’s The company expects revenue to Hershey ships products from the time that chocolate is ex- view them. ARCELORMITTAL profit rose 16% in its latest quar- increase a currency-adjusted 8% to its distribution centers using posed to high temperatures. The company’s interest in cre- ter, as the recreational-vehicle 10%, up from 6% to 9% previously. parcel carriers like UPS and Cold Chain Technologies ating its own programming—a Steelmaker to Sell manufacturer’s bottom line was For its fiscal second quarter Deutsche Post AG’s DHL. A 5- Inc., which makes Hershey’s model popularized by Netflix Two U.S. Operations helped by lower costs amid con- ended Feb. 29, Accenture reported pound box of chocolate, if coolers and frozen gel packs, Inc.—has been rumored for Steel giant ArcelorMittal said tinued sluggish consumer demand. a profit of $1.40 billion, or $2.08 a shipped to a warmer destina- says its research is focused on years. Thursday it has agreed to sell Revenue at the Forest City, share, up from a year-earlier loss tion, typically needs 2 to 3 new shipping methods for Apple is also creating video two of its U.S. steel operations to Iowa-based company fell 3.8% of $495.3 million, or 74 cents a pounds of ice packs to keep it drugmakers because they programs for its subscription- Black Diamond Capital Manage- and missed analyst expectations. share. Excluding a divesture-re- cool, said Mr. Zampedri. spend more on packaging to music service. According to peo- ment for an undisclosed sum. Winnebago’s total motor homes lated gain, among other items, High-end chocolatiers are keep high-price shipments of ple familiar with the company’s The transaction includes the delivered fell 3.4% for the quar- earnings per share increased to likewise struggling with ship- vaccines and other pharma- plans, Apple is creating a six-epi- sale of the LaPlace, La., steel fa- ter, though deliveries of the $1.34 from $1.08. Revenue rose ping costs. Vosges Haut-Choc- ceuticals cool. “For [pharma], sode series with hip-hop artist cility, along with a rolling mill in larger Class A models rose 3.2%. 5.9% to $8.40 billion. Analysts olat, a Chicago company that a loss is very painful,” said T.J. and Apple executive Dr. Dre ex- Harriman, Tenn. It also includes For the period ended Feb. 27, were looking for $1.18 a share on sells truffles and chocolate Rizzo, a CCT vice president. clusively for Apple Music, the the Vinton facility, located in El Winnebago posted a profit of $7.72 billion in revenue, according bars in flavors like coconut “If you lose a candy bar, the company’s $10-a-month stream- Paso, Texas. $9.4 million, or 35 cents a share, to Thomson Reuters. ash, says it loses money on loss is less painful.” ing music service. The show, “Vi- —Alex MacDonald compared with $8.1 million, or 30 —Lisa Beilfuss For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B6 | Friday, March 25, 2016 THE WALL STREET JOURNAL. BUSINESS NEWS Pitney Bowes Weighs a New Path Google Hit

Maker of postage whole. Still, even sophisticated With Fine retailers routinely subject cus- meters is making a tomers to poorly translated shift to e-commerce as websites, unexpected costs and On Privacy lost items. BY SAM SCHECHNER mass mailing wanes Through Borderfree, Pitney Bowes handles transactions for PARIS—France’s data-pro- BY BRIAN BASKIN dozens of retailers, including tection regulator has slapped a translation, currency conver- fine on Alphabet Inc.’s Google Pitney Bowes Inc.’s postage sions and finding the cheapest for not implementing Europe’s meters have been fixtures in local delivery service. “right to be forgotten” glob- mailrooms around the world That builds on an earlier ally, rejecting a compromise for most of the past century— partnership with eBay Inc. to offered by the Internet search and that’s a problem for the arrange international shipping giant and setting up a court company. in the U.S. and U.K. battle over the right’s scope. The business sells or leases The effort remains a work France’s Commission Na- its machines, which weigh and in progress. tionale de l’Informatique et stamp envelopes at high James Lee, a high school des Libertés, or CNIL, said speeds, along with other mail- English teacher in Chiba, Thursday that Google had vio- ing services to some 1.5 million Japan, said he liked how when lated a formal order last year customers world-wide, includ- he bought a leather jacket to apply the new right to be ing about 90% of Fortune 500 from a luxury retailer in the forgotten to all of its domain companies. Three out of every U.S., the retailer’s website dis- names, including google.com— four postage meters in the U.S. played prices in yen and gave and not just to European ones

are made by Pitney Bowes, the JENNIFER WEISShim FOR THE WALL STREET JOURNAL shipping costs upfront— like google.fr—and fined the company said. But postage CEO Marc Lautenbach, shown in 2013, said Pitney Bowes is looking to sign up ‘anchor’ customers. all Borderfree services. He also company €100,000 ($112,000). meters are a tougher sell these waited two weeks after pur- As part of its decision, the days as banking, billing, adver- tenbach, who joined Pitney chase before learning the regulator rejected a compro- tising and just about every- Going Paperless Bowesinlate2012after27 jacket was out of stock. The mise offered by the company, thing companies used to send years at International Business U.S. retailer later sent him a in which Google began making Pitney Bowes is making a push into international by mail goes online. Machines Corp. “But software different jacket at a discount. links to the name of a person e-commerce services as demand for its machines that Sales at Pitney Bowes have is one of those businesses that “On the front-end every- exercising the new right inac- weigh mail and apply postage declines fallen in four of the last five actually has very attractive thing was great, it was just the cessible to users in that per- years, to $3.6 billion in 2015. U.S. Postal Service mail volume, Pitney Bowes’s revenue, margins, and it makes this logistics of actually getting it son’s country, regardless of Over the last decade, U.S. in billions of items change from previous year equation a lot easier to close.” here that I ran into some is- what Google site the user was Postal Service mail volume has 250 80% The Stamford, Conn., com- sues,” Mr. Lee said. searching. declined by 48.5 billion items E-commerce Mailing pany needs to show progress Pitney Bowes faces compe- A Google spokesman said to 154.2 billion last year, and 200 60 this year, analysts say. tition from FedEx Corp. and the company would appeal the Pitney Bowes shares were Pitney Bowes is past the United Parcel Service Inc. ruling, adding that “we dis- down more than 40% over that 150 40 halfway point in a planned The marketing campaign is agree with the CNIL’s asser- period. five-year turnaround begun in aimed at getting retailers to tion that it has the authority A revival in the mass-mail- 100 20 mid-2013. The share of reve- give Pitney Bowes a chance, to control the content that ing business appears unlikely. nue from the unit that sells and shedding its image as a people can access outside 50 0 So Pitney Bowes is staking and leases postage machines is mail-equipment vendor. France.” its future on its replacement: 0 –20 still just over 50% of the total, Mr. Lautenbach said Pitney While the CNIL’s fine is a e-commerce, where retailers though that’s down from Bowes is looking to sign up pittance for Google, compared 2006 ’08 ’10 ’12 ’14 ’142013 ’15 ’16* send little traditional mail but nearly 60% in 2012. E-com- “anchor” customers, such as with Alphabet’s annual reve- need help processing orders Sources: USPS (mail volume): the company (revenue); *Forecast merce sales rose 29% in 2015 large retailers and online mar- nue of $74.54 billion in 2015, and shipping packages. Piper Jaffray (2013 e-commerce and 2016 forecasts) THE WALL STREET JOURNAL. to $362 million, about 10% of ketplaces, in large economies. both sides are fighting to set a Last year, Pitney Bowes total revenue. But fourth-quar- Another goal: integrate the precedent on how far the right spent $381 million to acquire are facing as they watch de- versing an effort to combine its ter profit came in below fore- postage meter and e-com- to be forgotten can extend. Borderfree Inc., which helps cades-old business models office equipment and services casts because the company merce sides of the business, The right, established in a retailers including Macy’s Inc. crumble in the face of online businesses. Analysts say for Pit- signed fewer large clients to including by selling cross-bor- 2014 ruling by the EU’s top and Harrods Ltd. sell and ship competition. Logistics compa- ney Bowes to avoid the same other software services. der services to smaller firms court, lets European residents products to customers in other nies that build business around fate it needs its fledgling e- Pitney Bowes is betting on that lease equipment. ask search engines to remove countries. handling mail or ferrying large commerce offerings to take off cross-border e-commerce, links from searches for their In January, Pitney Bowes shipments to brick-and-mortar before the postage business where consumers in one coun- MORE ON MOBILE own names if the information launched its first television ad stores find themselves ill- shrinks much further, depriving try buy products online from is old, irrelevant or infringes campaign in two decades, equipped to meet the needs of the company of the cash to pur- retailers in another. Forrester Get the latest on on their privacy. Google vets pitching itself as a business online retailers. Success stories sue a turnaround. Research predicts cross-border logistics issues requests, weighing privacy services provider, with barely are rare; even as Pitney Bowes’s “Very few things are quite sales will grow 18% a year over WSJ via a daily rights against the public inter- a postage machine in sight. ads ran in January, Xerox Corp. as profitable as a mail meter,” the next five years, compared .COM newsletter at est in having that information It’s a pivot many companies said it would split in two, re- said Chief Executive Marc Lau- with 11% for e-commerce as a wsj.com/Logistics tied to the person’s name.

Weather TheWSJDailyCrossword| Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. PUZZLE Edmontond 10s <0 123 4567 89101112 67 Start of 40s 40s CONTEST 0s le monologue VVancouver CalgaryCl y 20s 13 14 15 16 d’Hamlet 20s 10s Seattle Winnipegp 17 18 19 68 Old soap 40s 30s 20s 30s ingredient 33 Common stir-fry PorPPortlandd 20 21 Helena Montreal 30s Down Bismarckk 40s component 30s Billingsg 40s Ottawa AAugusta 40s 22 23 24 25 26 27 28 1 Eight-pack 36 Wisconsin city Eugeneg Boise 40s Mpls./St.. PaulPau TToronto Boston 50s makeup about 70 miles AAlbanyb y 29 30 31 50s Pierre Siouxoux FFallsll Hartfordtford 60s 2 Bug that’s not north of Chicago Milwaukeek Detroitt Buffalo CleveClClevelandl d Newew Y Yorkk hard to catch 37 Angry Reno ChicChChicagog 70s 32 33 34 Salt LLakeake CityC CCheyenneh y Deses Moines 3 Tout expressions Omahah Pittsburgh PhiladelPPhiladelphiahil d lp h 80s Sacramento Springfield Indianapolisd p li 35 36 37 4 Optimistic 38 Detective’s cry Denver 50s Washingtonh g onnD.Cn D.C.D C 90s Sanan Francisco CColoradod Topeka Kansas CChCharlestonh l t 5 Like the 39 Relief Springsp Cityy Richmondh d 100+ 38 39 40 41 42 43 44 45 46 47 LLas St..LouL Louis LouLLouisvilleill weakened 40 “Silicon Valley” Vegas 60s Wichitahit Nashvilleh ill CCharlotteh l 48 49 50 Samson carrier LosAl AngeAngeles Raleighliihh Santaa F Fe Memphisph 6 Grass glistener 41 Reprise Records PPhoenixh AAlbuquerqueb qq Oklahomakl a City AAtlanta 51 52 53 founder San Diego 80s CColumbiab Warm Rain 7 Belt-making 70s Little Rock 44 Avant.com TucTucson ElPaso Birminghamh 54 55 56 tools Ft. Worth DllDallas JacJacksonk Cold T-storms 8 Zebra, for offerings -0s 80s Mobilebil JJacksonvillek 57 58 59 60 61 62 45 Unfair treatment 0s AtiAustin example 10s Houstont Stationary 46 Lyrical poem 20s Orlandold Snow 63 64 65 9 Civil code Newew Orleans 47 Finish for colour 40s 70s Sanan Antonio TaTampap 10 Wind up 80s or glamour 30s AnchorageA h g Honolulu 80s Miami Showers Flurries 66 67 68 11 Nutrition label 80s 49 Franz who 50s abbr. Ice EGG HUNT | By Marie Kelly created a 12 “We won!” chocolate-and- Today Tomorrow Today Tomorrow 14 Watched a couple apricot torte U.S. Forecasts City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W The answer to 21 Calf’s 43 Stravinsky’s of boxers, say s...sunny; pc... partly cloudy; c...cloudy; sh...showers; this week’s contest counterpart “___ des Étoiles” 50 Plot Omaha 55 36 pc 48 28 c Frankfurt 48 40 r 55 40 pc 18 Adjust, as text t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice the 53 Less loony Orlando 85 68 t 83 68 t Geneva 48 38 r 58 40 pc crossword is 22 Big eggsporter 48 Eggsotic bloom Today Tomorrow seven-letter name flow Philadelphia 72 40 sh 60 41 s Havana 86 68 pc 90 69 pc of diamonds 55 Stop on Amtrak’s City Hi Lo W Hi Lo W 50 Menu section 19 Quarantine, say Phoenix 85 57 s 85 57 s Hong Kong 59 56 r 65 57 s of a bird. Lake Shore 25 Anxious feeling 51 Hebrew name for 22 Sound from the Anchorage 42 34 r 43 32 c Pittsburgh 49 31 c 58 41 s Istanbul 51 44 r 52 42 pc Across Limited Atlanta 69 50 s 75 58 s Portland, Maine 52 34 r 49 33 s Jakarta 89 77 pc 88 76 t 29 “Have ___!” God flock 57 Org. that may Austin 72 46 s 78 62 pc Portland, Ore. 56 40 sh 57 46 c Jerusalem 74 62 pc 65 53 t 1 Back on the (“Show mercy!”) 52 Third party in a 23 Detective’s cry say no to drugs Baltimore 71 40 sh 61 39 s Sacramento 72 48 s 73 50 s Johannesburg 77 55 pc 74 55 pc Bounty 30 Home of real estate 24 Ramstein in Boise 50 30 sn 54 39 s St. Louis 55 40 s 64 43 pc London 57 45 pc 57 44 r 58 Misplay Boston 61 37 r 49 36 s Salt Lake City 47 32 r 49 35 pc Madrid 64 41 pc 65 46 pc 4 Letters on a Travelocity and eggschange Germany, e.g. 59 Big busyness Burlington 56 29 r 46 31 s San Francisco 65 51 s 67 55 s Manila 94 78 s 94 78 s product’s Eggspedia 54 Proactiv target 26 Even a little 60 Mel of Charlotte 77 50 pc 70 51 pc SantaFe 6228pc5621c Melbourne 68 52 sh 68 56 pc “Organic” label 32 It splits into the 56 Winning 27 Boxer’s title: Cooperstown Chicago 45 32 s 57 40 pc Seattle 54 40 pc 59 45 pc Mexico City 78 55 pc 79 55 pc iliac arteries Abbr. Cleveland 40 29 pc 50 39 s Sioux Falls 47 31 pc 38 19 c Milan 59 40 pc 62 42 s 8 Polishing agent 57 Profit at 61 Plotting Dallas 69 50 s 76 54 s Wash., D.C. 72 44 pc 62 44 s Moscow 32 27 c 34 28 sf 13 Minor aberration 33 Crewmate of another’s 28 Listing abbr. 62 Ball-bearing Denver 4321pc3616sn Mumbai 90 72 pc 90 73 pc 15 “That was close!” Picard and Riker eggspense 31 Bleak and cynical device Detroit 47 30 pc 53 37 s Paris 53 41 r 59 46 pc Honolulu 81 69 sh 82 68 sh International Rio de Janeiro 88 78 pc 90 80 c 16 Address follower, 34 Agreement 63 Co-founder of Today Tomorrow Previous Puzzle’s Solution Houston 71 47 s 77 61 pc Riyadh 85 61 s 91 69 s at times 35 Eggsamining Death Row City Hi Lo W Hi Lo W FORD I RON ATBAT Indianapolis 50 35 s 61 42 s Rome 60 48 s 60 43 sh 17 When many thoroughly Records ONOR L I VE BOONE Kansas City 59 43 pc 58 34 c Amsterdam 49 37 r 56 44 pc San Juan 85 76 pc 85 76 pc 64 Tabloid twosome OLDYELLER IOWAN Las Vegas 79 56 s 70 49 s Athens 62 45 t 58 46 sh Seoul 54 32 s 54 35 s eggspensive ads 38 Sounds from the LYSOL ENDALL Little Rock 61 40 s 71 49 s Bangkok 93 79 t 93 79 pc Shanghai 56 37 c 60 44 c run massaged 65 Pitcher’s goal FLED MISTER SELF I E WAI THERE Los Angeles 77 55 s 78 55 s Beijing 59 35 s 67 34 s Singapore 92 79 pc 91 80 pc 20 Stock unit? 42 Miles away 66 Cheering loudly HUE SECONDYEARS

Miami 85 73 t 86 76 t Berlin 50 40 r 53 41 pc Sydney 7964pc7765s s ERAS ART DRAT Milwaukee 38 30 s 46 37 pc Brussels 49 35 r 57 45 pc Taipei 58 54 r 64 53 pc Email your answer—in the subject line—to [email protected] BODYENGL I SH UTE Minneapolis 46 37 pc 46 27 c Buenos Aires 71 58 pc 73 57 pc Tokyo 5243pc5445pc by 11:59 p.m. Eastern Time Sunday, March 27. A solver selected at random OPENTOED HOTPAD Nashville 62 36 s 72 45 s Calgary 47 23 pc 50 25 pc Toronto 42 25 c 44 28 s PARDON TYPO will win a WSJ mug. Last week’s winner: Al Sanders, Loveland, CO. RISETO PLAIT New Orleans 72 55 s 78 65 c Dubai 84 69 s 85 69 s Vancouver 51 38 pc 54 40 c SPOOL CANDYEGGS New York City 69 41 sh 56 42 s Dublin 54 45 pc 50 38 r Warsaw 47 34 c 50 31 sh Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. PLUME OBEY DROP Oklahoma City 69 47 s 72 41 pc Edinburgh 52 42 pc 52 38 r Zurich 46 37 r 55 33 pc Void where prohibited. U.S. residents 18 and over only.) AYRES NUDE OARS 21 o oe o,Ic l ihsrsre.6DJ3328 reserved. rights All Inc. Co., & Jones Dow ©2016

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DJIA17515.73 À 13.14 0.08% S&P 2035.94 g 0.04% NASDAQ 4773.50 À 0.10% 10–YR. TREAS. g 8/32, yield 1.902% OIL $39.46 g $0.33 EURO $1.1174 YEN 112.90 See more at WSJMarkets.com Gas Industry Faces Glut, Painful Spring

Warmest winter on the U.S. Energy Information Administration said gas pro- record leads U.S. ducers began stockpiling dur- producers to start ing the week ended last Friday, signaling an unusually early stockpiling early end to the winter heating season. Historically gas still is be- BY RYAN DEZEMBER ing withdrawn to fuel furnaces AND TIMOTHY PUKO at this time of year. The output surge has the U.S. natural-gas production gas market in a sorry state hit its highest level ever over headed into spring, when de- the winter in the face of low mand typically weakens and prices, a conundrum at the stockpiles swell. Prices usually ‘We want to try to heart of one of the year’s peak in winter, but instead normalize worst-suffering markets. they have declined steadily Energy companies have re- over the season in the absence [interest rates] as sponded to lower prices by of cold weather. fastaswecan.’ cutting back drilling. But they Gas prices have been falling are continuing to pump ag- this year even as oil prices ROBERT KAPLAN gressively from their most have rebounded. U.S. oil prices Dallas Fed president productive wells, which, along are up 6.5% this year on spec- with an unusually warm win- ulation that global exporters

MISTY KEASLER FOR THE WALL STREET JOURNAL ter, has left the industry head- will cooperate to cap output. ing into spring with a supply Natural-gas futures for glut and prices down by nearly April delivery ended the week a quarter this year. at $1.806 per million British The Decline of Dissent at the Fed Average daily gas output in thermal units, down 5.3%, or the continental U.S. set a re- 10.1 cents. They are down BY JON HILSENRATH make it easier for markets to ard Fisher, who retired last we can,” Mr. Kaplan said in a cord in February of 73.3 billion roughly 40% since last May read where policy is headed year after 10 years as a color- Dallas office stuffed with cubic feet, energy-market-data when they narrowly topped $3 Dallas Fed President Robert but can raise the risk of offi- ful and outspoken “hawk” who memorabilia from his home firm Platts Bentek said this and about 23% this year. Steven Kaplan is part of a wid- cials thinking so much alike resisted the Fed’s easy-money state of Kansas and with man- week. That is up about 2% Many analysts expect prices to ening consensus taking root that they miss new threats to policies, which he likened to agement “how-to” books he from January and adds pres- remain at around these levels inside the nation’s central the economy, some analysts heroin. wrote. “But we have to be pa- sure on prices that already at least until summer when bank on interest rates. said. The Fed needs to keep rais- tient and gradual.” were too low to make many electricity producers ramp up During much of the postfi- Mr. Kaplan, a former Har- ing short-term interest rates Mr. Kaplan hasn’t yet been wells worth drilling. their buying to meet demand nancial-crisis era, many re- vard Business School profes- to diminish risks to the econ- a voting member of the Fed’s Meanwhile, on Thursday, Please see GAS page C2 gional Fed bank presidents sor and Goldman Sachs Group omy and markets of “excessive rate-setting committee, but challenged views coming out Inc. executive, in an interview accommodation,” Mr. Kaplan said he has agreed with every of the Federal Reserve Board with The Wall Street Journal, told the Journal on Monday. decision Ms. Yellen has led in Full of Gas in Washington about monetary positioned himself as a cen- However, fragile and intercon- the five policy meetings he has Despite declining prices, U.S. natural gas output continues to rise. policy. Now, Fed Chairwoman trist among Fed policy makers, nected financial markets, slow attended since last year. Mr. Janet Yellen has more of the ready to keep raising short- global growth, and the perils Fisher dissented on nine pol- 75,000 billion cubic feet DAILY U.S. GAS PRODUCTION institution marching behind term interest rates, but closely of driving the economy back icy decisions in 10 years at the her in agreement with her aligned with Ms. Yellen in a into recession all mean the Fed, about 30% of the time he 72,500 strategy of raising rates slowly desire to proceed with cau- Fed can’t move aggressively, had chances to vote. in the months and years tion. he said. The Fed has held its bench- ahead. His approach stands in con- “We want to try to normal- mark short-term rate between 70,000 A more cohesive Fed can trast to his predecessor, Rich- ize [interest rates] as fast as Please see FED page C2

67,500

Square’s Latest Offering: Bank Loans 65,000

BY TELIS DEMOS reason is that investors and priced below its projected 62,500 analysts are less often valuing range at $9 a share. But shares Square Inc. is creeping fur- them purely as Internet com- remain below the peak price of $4.609 $2.734 $1.711 60,000 ther from Silicon Valley and panies, which tend to trade at $15.46 at which it raised closer to Wall Street. higher prices relative to their money from private tech in- 2014 ’15 ’16 The company said Thursday revenue growth. vestors in 2014. The stock was U.S. natural gas prices (MMBtu, February) it hopes to speed its path to Payments firms getting into at $12.88 as of Thursday’s profitability by offering loans lending “is a natural extension close. Sources: Platts Bentek; FactSet THE WALL STREET JOURNAL. through a partner bank as an of the business,” said Sanjay A further complication is add-on service to its core pay- Sakhrani, analyst at Keefe, that online loan marketplaces ments business. Bruyette & Woods, Inc. But, he have recently been hit by tu- Square’s shift to more said, “if you survey the invest- mult in the credit markets, closely resemble other online ment community, they tend to with several firms warning In a New College Try, lenders comes at a tricky time; think doing more lending” is a that they may have to buy the despite fast revenue growth, drag on the stock valuation loans themselves or seek alter- the market values of financial- and not a boost for it. native funding. Unlike banks, Connecticut Wants technology firms such as Square’s stock has risen these online lenders don’t have

LUCAS JACKSON/REUTERS LendingClub Corp. have fallen since the company’s November deposits to fund their loans. Square co-founder Jack Dorsey over the past two years. One initial public offering, which Please see SQUARE page C2 To Tax Yale’s Profits BY TIMOTHY W. MARTIN tion,” according to his written testimony. The state of Connecticut Yale is the state’s fifth-larg- Strange Signal From Markets: Stagflation? wants its richest university to est employer, with $2 billion share more of its wealth. paid annually in wages and Facing budget shortfalls benefits, Mr. Jacob added. It Central banks may be in what is known as the 10- One interpretation: the because of inflation while and a deep pension hole, Con- also makes a voluntary pay- worrying about the lack of year inflation “break-even”— market is worried that the underlying economic mo- necticut lawmakers this week ment of $8.2 million every inflation, but some investors the difference between ordi- growth will remain so-so mentum is slowing down and proposed taxing the invest- year to the city of New Haven. are fretting that the U.S. is nary Treasury bond yields while rising oil prices and not capable of digesting ment profits of Yale Univer- In addition, students and visi- heading for the wrong type and inflation-linked yields— incipient wage pressure higher rates,” said Jean Me- sity’s $25.6 billion endowment, tors spend an estimated $150 of inflation: wasn’t all good news. force the U.S. Federal Re- decin, a member of the in- the nation’s second-largest af- million annually. stagflation- Treasury yields reversed serve to tighten policy. Not vestment committee at Car- ter Harvard University’s. Yale The proposed taxes would lite. at the same time as inflation exactly the stagflation of the mignac, a French fund is located in New Haven, Conn. kick in if Yale doesn’t reinvest The con- expectations turned in mid- manager. “It is our hope that these endowment profits into the lo- cern comes February, but inflation-linked The problem with this rich schools can use their cal economy or higher educa- from a yields have continued to fall. thesis is that the rebound in wealth to create job opportu- tion. Endowments have gener- STREETWISE closely This matters. Buyers of 1.7% markets has been wide- nities, rather than simply to ally been treated as tax- JAMES watched Treasury inflation-protected 10-year break-even inflation is spread, encompassing equi- get richer,” Martin M. Looney, exempt organizations because MACKINTOSH part of the securities, or TIPS, are chas- the highest since the fright ties, credit and commodities. state Senate president and one of their affiliations with uni- bond market ing the safest, most boring over China last summer. If TIPS investors are really of the state’s most powerful versities and colleges. But U.S. from which return there is: currently worried about weak growth, Democrats, said in written tes- lawmakers, in joint House and inflation expectations are de- 0.27% above inflation, locked why aren’t other markets, timony for a committee hear- Senate inquiries, are examin- rived. This year’s market rein for 10 years. These appeal 1970s, which ended in 1980 too? ing held this week. ing the escalating cost of bound was accompanied by a to people who really can’t with inflation hitting 15% Dig beneath the surface, Connecticut is home to higher education, given those sharp rise in these inflation find anything better to do amid a recession. But a sort and perhaps they are. The more than 40 colleges. But the institutions’ tax-exempt status. expectations, which moved with their money; the drop of stagflation-lite: weak S&P 500 may be up slightly potential tax singles out Yale Led by David Swensen, from a February low of 1.2% in yield (and rise in price) growth and accelerating this year, but at a sector because it would affect only Yale’s endowment has consis- a year for the next decade to suggests weaker belief in the price rises. level the story is mixed, at endowments with $10 billion tently produced double-digit 1.7%, the highest since the economic growth which “I think we are in a situa- best. The U.S. economy has or more in assets. Please see YALE page C2 fright over China last sum- should make riskier assets tion where [the Fed] might been driven by the consumer A senior Yale official, Rich- mer. Unfortunately, this rise more appealing. be forced to normalize rates Please see PRICES page C4 ard Jacob, called the proposed law “plainly unconstitutional” Notice to Readers and promised that the univer- U.S. financial markets will be INDEX Commodities...... C7 Currency Trading...... C6 Exchange-Traded Funds...... C5 Global Finance...... C3 Money Rates...... C4 New Highs & Lows...... C4 Cash Prices...... C7 Credit Markets...... C8 Dividend News...... C8 Finance Watch...... C3 Heard on the Street...... C8 Mutual Funds...... C5 Stock Listings...... C7 sity “would defend its consti- closed today for Good Friday. tutional right of non-taxa- C2 | Friday, March 25, 2016 ** THE WALL STREET JOURNAL. MONEY & INVESTING FED SEC Cracks Down on Vague Proxy Proposals Continuedfromthepriorpage BY ANDREW ACKERMAN panies’ annual meetings. tions of impartiality,” said munity Bancorp Inc., identi- York Community Bancorp, Inc. 0.25% and 0.5% since Decem- “The proxy card should Glenn Davis, the council’s di- fied a proposal on its card re- for the fiscal year ending De- ber, when it raised the rate WASHINGTON—U. S. secu- clearly identify and describe rector of research, in a June questing so-called proxy access cember 31, 2015.” from near zero after holding it rities regulators are cracking the specific action on which 2015 letter to the SEC. as merely: “A shareholder pro- At the second company, there for seven years. down on a tactic some compa- shareholders will be asked to In this week’s guidance, the posal, as described in the FirstMerit Corp., the council Ms. Yellen has adopted and nies use to obscure the pur- vote,” the SEC said in guid- SEC said its rules require com- proxy statement, if properly said a vague description of a built on the consensus-ori- pose of shareholder proposals ance released on its web- panies to clearly describe pro- presented at the Annual Meet- compensation-related share- ented style of her predecessor, opposed by management. site Tuesday. posals, regardless of whether ing.” Proxy access allows cer- holder proposal—“To con- Ben Bernanke. Despite signs of The Securities and Ex- The Council of Institutional they are put forth by share- tain shareholders to print the sider a shareholder proposal division in recent months, the change Commission this week Investors, which represents holders or management. While names of candidates for corpo- if properly presented at the institution is largely in agree- released guidance cautioning large pension funds, last year the SEC stopped short of tar- rate boards of directors di- meeting”—contrasted notice- ment on the likely path of companies against vague de- asked the SEC to weigh in on geting specific companies, the rectly onto company ballots ably with a management pro- rates. scriptions of measures appear- the issue, warning that share- Council of Institutional Inves- and was opposed by the firm’s posal on the same topic—“To Looking ahead to 2018, offi- ing on corporate ballots, holder proposals are some- tors in its letter last year iden- management last year. approve, on an advisory ba- cials see rates rising to some- known as proxy cards, which times identified using vague tified two that it said had in- In contrast, the company sis, the compensation of where in a narrow range be- shareholders use to vote on language while management consistent approaches to the used more detailed language FirstMerit’s named executive tween 2.125% and 3.875%. major company matters. The proposals are identified with identification of voting items on a routine management pro- officers.” When Ms. Yellen took the job entreaty from SEC staff comes more precise language. at shareholder meetings. Such posal to ratify its auditors. It A spokesman for New York in 2014, the officials’ projec- after complaints from inves- The dichotomy “not only vague descriptions used at called for: “The ratification of Community Bancorp declined tions three years out varied tors that some companies have presents challenges to inves- both companies appear to clash the appointment of KPMG LLP to comment. A FirstMerit much more widely, between failed to clearly identify voting tors’ understanding of the vot- with the SEC’s new guidance. as the independent registered spokesman couldn’t be 0.75% and 4.25%. items presented ahead of coming items, but also raises ques- One firm, New York Com- public accounting firm of New reached for comment. In addition to Mr. Fisher, the other policy outliers who have left the Fed in the past year are Charles Plosser, the GAS former Federal Reserve Bank of Philadelphia president who also opposed easy money, and Continuedfromthepriorpage Narayana Kocherlakota, the for air conditioning. former Minneapolis Fed presi- “Going into summer, pro- dent who advocated more ag- ducers know it’s going to be a gressive easy-money policies. massacre,” said Sami Yahya, a Mr. Plosser’s successor, Patrick Platts Bentek analyst. Harker, has expressed centrist Unseasonably warm tem- policy views. Mr. Kocherla- peratures this winter reduced kota’s successor, Neel Kash- demand for the heating kari, has publicly challenged fuel and also meant fewer fro- Ms. Yellen on bank supervision zen wells, a phenomenon that but not monetary policy. typically plagues onshore “She has got less people to fields and can cause supply contend with and less people disruptions and boost prices. who are going to oppose tak- Nearly 2.5 trillion cubic feet ing policy in a dovish direc- ofgaswereinstorageon tion,” said Michael Feroli, March 18, about 51% more chief U.S. economist for J.P. than the five-year average for Morgan Chase & Co. this time of year, the Energy Ms. Yellen courts input Information Administra- from all 17 officials before pol- tion said. icy meetings, scheduling face- Emerging from winter with to-face discussions and phone that much supply puts the calls before gatherings offi- market on pace to test the cially start. In two years on country’s capacity to store gas. the job, she has faced nine dis- Analysts generally believe U.S. sents, including just two in the stockpiles will exceed 4 trillion cubic feet of gas by October, when supplies usually start to ‘Judge me on the shrink again. merits of how well I The situation puts produc-

ers, many of which also are TY WRIGHT/BLOOMBERG NEWS serve the nation and suffering a severe slump in oil Drilling for natural gas in Pennsylvania. After a warm winter in the U.S., the supply of natural gas continues to swell. the district,’ he says. prices, in a “prisoner’s di- lemma,” in which no one pro- watched weekly tally that While output has declined in and set the stage for prices to launched by energy-focused ducer is motivated to restrain there are 92 rigs drilling for the Rocky Mountains, Arkan- rise. private-equity firm Denham past 10 meetings. Mr. Ber- output, said Richard Ennis, an gas, up slightly from the prior sas and parts of Texas, accord- Some Wall Street investors Capital Management LP said nanke faced 48 dissents in energy banker at ING Groep week but less than half the ing to investment bank Jeffer- have lately placed big bets on it would pay $420 million for eight tumultuous years. NV. “You’re losing money, but number a year ago. ies Group LLC, the cuts have the fuel, snapping up out-of- EP Energy Corp.’s Haynesville As a former investment if you can keep selling the gas Mr. Yahya of Platts Bentek been more than offset by sev- favor drilling properties being shale fields in Louisiana, banker at Goldman Sachs, then you’re losing less money said production has begun to eral record-setting wells tap- sold off by beleaguered energy though Denham’s top oil and where he spent 23 years until than if you shut the well in. slip from February’s record ping the Utica and Marcellus companies. gas executive cautioned that 2006, Mr. Kaplan seeks to po- There’s no way to be disci- levels but doesn’t expect it to shales in Ohio, Pennsylvania Last month a company the purchase isn’t necessarily sition himself in the Fed as an plined.” fall enough to erase the gas and West Virginia. backed by investment firms a sign that the firm expects expert on financial markets. Still, many producers have glut. Houston investment bank Warburg Pincus LLC and gas prices to rise. This is another potential made significant cuts. The Analysts say that the de- Tudor, Pickering, Holt & Co. Kayne Anderson Capital Advi- “We’re bullish on our man- challenge. Four of the 12 re- number of rigs drilling in the cline in drilling doesn’t neces- said this week that gas prices sors LP agreed to pay WPX agement team’s capabilities of gional Fed bank presidents U.S. specifically for natural gas sarily correlate to less produc- will need to remain below $2 Energy Inc. $910 million for creating profits with certain were affiliated with Goldman has fallen recently to the low- tion as those rigs that remain this year to entice more power its drilling properties in Colo- properties,” Carl Tricoli, man- before joining the Fed, feeding est level on record, according drilling are the most efficient, generators to convert from rado’s Piceance Basin, a region aging partner at Denham. “If public perceptions that the to oil-field services company run often by the most experi- burning coal to natural gas. where gas output has fallen the gas price goes up it’s awe- central bank is too close to big Baker Hughes Inc. It enced crews and targeting In turn, that switching off. some, but we’re not going to banks bailed out during the fi- said Thursday in its widely companies’ best prospects. could chip away at the gas glut And this week a company rely on gas prices going up.” nancial crisis. “Judge me on the merits of how well I serve the nation the state’s taxpayers” to ex- and the district,” he said. YALE pand education access and Financial-market conditions create jobs, Mr. Looney said. are one reason Mr. Kaplan The Greater New Haven wants the Fed to go slow on Continuedfromthepriorpage Chamber of Commerce, along rates. Because they are so in- returns over the past three de- with Yale, has opposed the terconnected, shocks in China cades. Yale gained 11.5% for legislation. are spilling out to the rest of the year ended June 30, pock- “Singling out one institu- the world and creating market eting more than $2 billion in tion is bad policy, especially turbulence that restrains the investment profits. when the institution has been U.S. expansion. It is unclear how future en- a strong partner with its Globalization of labor mar- dowment earnings would be hometown and its home kets, he said, is a long-running taxed. state,” Mr. Jacob said in testi- downward weight on inflation Connecticut could use the mony this week. and wages. “I don’t think it’s extra cash. The state faces a The state’s finance commit- an option to just think domes- $266 million shortfall for fis- tee will vote on the proposal tically. You have got to think cal 2016. It has roughly only in early April. If it passes, the globally,” he said. half of the money it needs to proposal could be directly sent Like Ms. Yellen, he isn’t pay future retirement benefits to the Senate floor for a vote, convinced inflation is on an for its workers, with unfunded according to a spokesman for upward trend, despite signs of liabilities doubling over the Mr. Looney. But a vote by the a pickup. past decade to $26 billion. General Assembly could be de- Inflation has run below the Only Illinois and Kentucky layed further if lawmakers de- Fed’s 2% target for 45 months have worse-funded pensions. cide to send the bill to another in a row, a factor keeping the The potential tax “would committee, he added. The

central bank from raising rates STEVE REMICH FORshare THE WALL STREET JOURNAL a small percentage of Connecticut legislative session aggressively. Connecticut lawmakers want to tax investment profits of Yale University’s $25.6 billion endowment. [Yale’s] retained earnings with ends at midnight on May 4.

Apax ADVERTISEMENT vate-equity investor at cal cash advance is repaid in less than 5% of Square’s total SQUARE Partners and in principal in- nine months, Square says. net revenue of $1.3 billion last vestments at Goldman Sachs The loans, which will be year. Legal Notices Group Inc. She was recruited originated by Utah’s Celtic Square isn’t the only pay- To advertise: 800-366-3975 or WSJ.com/classiﬁeds Continuedfromthepriorpage last year by Jack Dorsey. Bank in partnership with ments firm to move toward “The market side is being Square’s co-founder and chief Square, will be bundled to- lending: PayPal Holdings Inc. challenged now,” said Jacque- executive who also runs Twit- gether and sold to investors said last year it had extended NOTICE OF SALE line Reses, head of Square ter Inc., such as hedge funds and other over $1 billion in working-cap- Capital. “But the loans to our Ms. Reses said Square will asset managers. ital loans to small businesses merchants will be very simple, hold a small portion of the that take payments via PayPal. LEGAL American Express !" #$ % &!'( )) *+,$ fair, and transparent,” which is loans itself. “We want to show Co. also is ( ) -. / !(+ $ “attractive to our investors.” investors we’re willing to put aiming to expand its financing 0+(. , " ,. " ". ( (#! (! "" " 1+. NOTICES Square already offers cash skin in the game,” she said. 70,000 to merchants that accept its -." !" ! -, ! !(+" " $ + + advances to small businesses, “But we’re quite focused on Number of cash advances cards. ,. !. " " , ADVERTISE TODAY and believes its expansion into managing risk overall as a Square made last year, adding Unlike pure lenders, which -, ! $ 23 4. 56 77/// + 8985 " ++ #$ 4. bank loans can bolster Square company.” up to about $400 million must evaluate borrowers using 6)77): + 23 4. 5677/997 " Capital’s appeal to borrowers Square will offer the loans third-party data, Ms. Reses ++ #$ 4. 6)77)7 " !(+" ! ( $ !(+. ; " (800) 366-3975 and avoid some of the chal- to small businesses that use its says Square’s data scientists 995)7: 97779: 97)): + 9)5 " , lenges other online lenders payment devices, with fees of Square made more than can see over 2,000 data points, " <(" ! " sales.legalnotices . !+ #+ # "(# + #$ 0+(. have faced, including worries around 10% to 16% of the 70,000 cash advances for including a merchant’s daily " # =5 $ @wsj.com , # "+ "(#>! " " < about loan quality and market amount borrowed. The loans about $400 million in 2015, sales, as well as its payroll and 0+(. "!(. ? "( Placeanadwiththe demand. will be paid back by Square with $150 million coming in invoices if they use other soft- =/957) ! !$ ! ++ -"" self-service tool at: Ms. Reses previously was taking a cut of each transac- the fourth quarter. ware Square has started sell- $ # <,+ ,,,<+(.!8 chief of development at Yahoo tion, typically around 10%. Un- The company doesn’t dis- ing. With that data, Square (#!@(! " 0+(. $ # ! ! + wsj.com/classifieds 0+(. A" B+ C Inc. and served on Alibaba like a cash advance, which is close its revenue from cash ad- Capital can target the mer- ! ( ( 5 -. /9 >,+D Group Holding Ltd’s board of open-ended, the loans must be vances, which it includes as chants that look like the best +!7! 2/3 69/ ? 7 © 2016 Dow Jones & Company, Inc. All Rights Reserved. directors. She also has a Wall repaid within 18 months and part of its software-and-data bets and deliver funds within Street background, as a pri- can be repaid early. The typi- group. That revenue made up minutes. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, March 25, 2016 | C3 GLOBAL FINANCE ECBGetsToughonBankMerger Plan Aims

Italian lenders yield to banking sector has come un- would kick-start mergers. It To Curb der the spotlight in recent also has passed a bill aimed at demands from central months, with concerns over combining nearly 400 tiny co- bank on capital and €200 billion ($223 billion) in operatives into a single entity Bank Risk bad loans and lackluster prof- similar to France’s Crédit Agri- board governance its. The fragmentation and cole network. Crédit Agricole provincialism of Italy’s banks SA, the listed entity, is Models BY GIOVANNI LEGORANO has been a source of such France’s second-biggest lender Global regulators moved to problems for decades. Bank by assets. further tighten the reins on MILAN—The European Cen- executives with strong local “In 2016, Italy must solve banks, proposing limits on the tral Bank’s hard-line stance on ties have resisted selling out its banking problem once and discretion institutions have to the merger of two Italian lend- to larger groups. for all,” Prime Minister Matteo measure how much risk they ers is a shot across the bow of The smaller banks often Renzi said last week. can take. Italy’s fragmented and trou- lack adequate risk-manage- As part of the deal, Banco bled banking sector. ment systems and are overly Popolare will have to raise €1 By Donna Borak In a letter last week to focused on lending without billion mainly through a sale in Washington Banco Popolare SC and Banca much in the way of asset- of fresh shares, part of which and Margot Patrick Popolare di Milano Scarl, the management and other fee- will go to writing down the in London ECB made clear what it earning businesses. As a re- bad loans of the combined en-

wanted from the two banks in ALESSANDRO GAROFALO/REUTERS sult, at the end of 2014, bad tity, the banks’ chief execu- The compromise plan the middle of merger talks: a Banca Popolare di Milano headquarters in Milan. The lender and loans made up 14% of the to- tives said on Thursday. reached Thursday by the Basel drastically slimmed down tie-up partner Banco Popolare got some tough love from theECB. tal at cooperative banks, On board governance, the Committee on Banking Super- board, additional write-downs known as popolari and typi- ECB and the banks struck a vision wouldn’t allow banks to of bad loans and bigger capital tempting to overhaul a sector stronger institutions, and cally the smallest lenders, compromise. The board will calculate their own credit risk buffers. that is among the weakest in long-standing ties to local compared with 10% for Italy’s have 19 members for the first from exposure to other banks, Late Wednesday, the Italian Europe, suffering from poor municipalities may have to bigger banks, according to the three years, after which the large corporations and stocks. banks ceded to the demands, profitability and weighed loosen for mergers to go BankofItaly. number must fall to 15. The The committee is counting on renouncing some aspects of down by bad loans. ahead. “The Italian banking system two lenders had 47 directors the nonbinding proposal to the original deal they had More broadly, the ECB’s “The ECB is sending a loud is still too fragmented,” Econ- altogether. lessen potential risks to finan- stitched together to create It- stance could resonate beyond and clear message at [the] eu- omy Minister Pier Carlo Pa- Some past mergers made cial stability tied to the con- aly’s No. 3 lender by assets. Italy, possibly making consol- rozone level: We favor merg- doan said this week. “They are “banks weaker than they were nections among global banks. The tough-love approach to idation tougher, said invest- ers, but these can happen only too small and the numbers are before they merged,” said Financial institutions in the merger, the first large deal ment bankers who have been according to specific terms,” too great.” Danièle Nouy, head of the ECB’s Japan, Switzerland, Singapore under the central bank’s ex- pitching deals to lenders. said Fabrizio Bernardi, a Mi- The government has passed supervisory arm. “So we want and Scandinavia potentially panded remit, comes as the Weaker banks will need to be- lan-based analyst at brokerage a law forcing the cooperative to make sure for all mergers have the most to lose from ECB, the Bank of Italy and the come leaner and more effi- Fidentiis. banks to convert into joint- that the new entity is strong limits on using their own mod- Italian government are at- cient before combining with The fragility of Italy’s stock companies, hoping this from the very beginning.” els to measure risk. The proposed rules aren’t expected to have a big impact on the four largest U.S. financial institutions—J.P. Morgan Chase & Market Confidence Co., Goldman Sachs Group Inc., Bank of America Corp. and Citigroup Inc. U.S. regula- Growing in Beijing tors have already imposed tough new borrowing limits, and the Federal Reserve has BY SHEN HONG The gradual reopening to implemented rigorous annual two practices that aggravated stress tests. SHANGHAI—A number of the crash is widely seen as a Chinese brokers are quietly re- signal of Beijing’s growing The Basel panel suming short-selling services, confidence that the market is which allow investors to bet recovering. Short sellers bor- wants to lessen that stocks will fall, in a fresh row stocks in order to sell potential risks to sign that the country’s mar- them, betting that they can kets may be returning to nor- buy them back later at lower financial stability. mal after a brutal crash and prices. trading clampdown last sum- “The latest development is mer. a signal that the authorities “The U.S. is in a better posi- In a statement published on think the market has moved tion to make this adjustment Wednesday, Ping An Securities past the stage of excessive with these rules than the Eu- said it will restart short-sell- pessimism or panic,” said ropean and U.K. banks,” said ing services suspended since Shen Meng, director at Chan- Mayra Rodriguez Valladares, early July. son & Co., a boutique invest- managing principal at consult- The Shenzhen-based mid- ment bank. “It’s a show of ing firm MRV Associates LLC. size brokerage is the second confidence.” But U.S. banks could face high securities firm in less than a Although Chinese securities hurdles if U.S. regulators stop

week and third in less than a regulators never banned mar- SIMON DAWSON/BLOOMBERG NEWS them from using their own month to announce a resump- gin trading or short selling, Credit Suisse CEO Tidjane Thiam requested and received a 40% cut to his planned 2015 bonus. risk models altogether and in- tion. they made their disapproval of stead use a common standard, Also back: margin trading. both clear, and discouraged wise might have received. He vember. The China fund and the a policy change Fed governor Last week, the state securities brokers and investors from Finance has said publicly that this was a global fund will split Warburg Daniel Tarullo has sought. regulator effectively opened trades they saw as depressing gesture of “solidarity” with em- Pincus’s future Chinese invest- The Switzerland-based the door wider to buying the market. Watch ployees seeing their own bo- ments evenly, meaning the U.S.- global rule-setting body stocks with borrowed money, At the peak of the summer nuses reduced. based private-equity firm’s China stopped short of barring banks another activity that had been selloff, authorities and state Credit Suisse said that its “companion” fund will give it a from using their own model- discouraged since the rout last media condemned short sell- board accepted Mr. Thiam’s re- combined $4 billion of capital ing. Under the proposal, banks summer, when shares fell 45% ing as having a “malicious in- quest and gave him an award of aimed at China deals. That would still be allowed to cal- between mid-June and late- tent.” 2.86 million francs—40% of would place it on par with some culate capital held against cor- August. Behind the scenes, Chinese CREDIT SUISSE which was paid in cash. In addi- of the larger private-equity in- porate, mortgage, credit-card regulators called on securities tion, Mr. Thiam received a re- vestors in the region. and retail exposures, a typi- firms and big companies to CEO Thiam Gets placement award paid in stock, The fundraising plan comes cally significant portion of a The Big China Short support the market, some bro- $4.7 Million in Pay designed to compensate him for as private-equity managers have bank’s assets. Short-selling volume soared last kers say privately. Credit Suisse Group AG remuneration left behind at his raised large sums of money to The committee is separately year before the crash in Chinese A number of brokerages Chief Executive Tidjane Thiam former employer, Prudential PLC. invest in Asia, particularly China. considering imposing addi- stock markets ended the party. suspended short-selling ser- received 4.57 million Swiss That award was valued at 9.6 Hong Kong-based PAG raised tional constraints by placing a vices and vowed not to sell francs ($4.7 million) in total pay million francs as of March 17, $3.6 billion in December for a cap in the range of 60% to 90% Value of short-selling transactions their own stocks. Many big for 2015, a year in which he Credit Suisse said. new pan-Asia buyout fund after on all four asset classes to 700 billion yuan shareholders of listed compa- launched a bid to restructure the —John Letzing former Goldman Sachs Group limit the benefit of banks be- 600 nies made similar pledges not Swiss bank. Inc. banker Richard Ong’s RRJ ing able to use their own mod- to unload shares. The overall bonus pool at Zu- WARBURG PINCUS Capital raised $4.5 billion for a els to weigh risk. A signifi- 500 The tacit nods to margin rich-based Credit Suisse declined new Asia-focused private-equity cantly higher floor could have trading and short selling lately 11% for the year, as anticipated. $2 Billion Is Sought fund in September. a material impact on all banks. 400 may also be an attempt to dis- Employees at the investment For New China Fund Warburg Pincus still is in the The proposal kicks off a 300 As of March 23: pel concerns among foreign bank saw their bonuses decline Warburg Pincus LLC is seek- early stages of raising the new three-month comment period 2.7 billion yuan investors that Beijing is no more than 30%, Credit Suisse ing to raise $2 billion for a new fund. It plans to launch the before any policy changes are 200 longer committed to over- said, adding that 31% of the in- China private-equity fund, giving fundraising formally on June 1 finalized. After that, each hauls, especially after authori- vestment bank’s employees saw the early investor in China more and aims to close the fund by country must begin their own 100 ties this month shelved a their bonuses cut by more than firepower to cut deals in the December, one person familiar process of applying the rules 1.82.62.1 0 much-anticipated change to half. country, people familiar with the with the situation said. A to their respective banks. the country’s stock-listing sys- Mr. Thiam, who assumed the situation said. spokeswoman for Warburg Pin- The move marks the latest 2015 ’16 tem, Mr. Shen added. CEO role in July, had requested The fund will invest alongside cus declined to comment on the big piece of work by the Basel Source: Wind Info —Yifan Xie a 40% cut to his 2015 bonus, Warburg Pincus’s latest $12 bil- fundraising plans. Committee on regulatory THE WALL STREET JOURNAL. contributed to this article. compared with what he other- lion global fund, raised in No- —Kane Wu changes that address problems exposed by the financial crisis. Further work by the 29-member body that sets standards for banks globally includes Citic Securities Net Soared in Wild Year changes to operational and credit risk along with a lever- BY JAMES T. AREDDY cial investigations in the wake Citic Securities reported lion yuan rise in the value of age ratio that would require of the market turmoil. that in 2015, revenue rose 85% financial assets available for banks to fund all assets with a Citic Securities called a The brokerage also shed to a record 72.92 billion yuan. sale “mainly” to its activity minimum amount of money. year that cleaned out its exec- new light on its leading role in The firm posted a nearly 30% with China Securities Fi- Regulators, especially those utive suite in the wake of a buying stocks during the gov- gain in investment-banking nance but left unclear how in the U.S., consider it prob- stock-market crash the “sever- ernment-led intervention to revenue and said revenue from much of the total came from lematic to allow banks to mea- est test” in its 20-year history, prop up the market amid its its asset-management business other activities. sure their own credit risk and though China’s wild stock- mid-2015 crash, though it of- grew 43%. Its fees and other The report indicates four determine how much capital market gyrations appear to fered little insight into the revenue from margin lending senior executives who it previ- they need to guard against a have had little impact on the holdings’ current value. jumped more than 80%. ously named as involved possible default by a counter- firm’s ability to make money. The Chinese stock market’s About its role in China’s in- in investigations, including party and the individual firm’s China’s largest brokerage surge and subsequent tervention to prop up the former President Cheng Bom- exposure if there is a loss.

firm this week said its net crash around the year’s mid- stock market last year, Citic ing, have left the company. BOBBY YIP/REUTERS Policy makers argue that in- profit soared nearly 75% in point led to unprecedented said it funneled funds toward The brokerage in September Zhang Youjun, thenew dividual assessments often de- 2015 to a record 19.80 billion scrutiny of the firm by author- the market twice just after big said Mr. Cheng was detained chairman of Citic Securities liver varied results among in- yuan ($3.04 billion), and it re- ities—“the severest test faced drops, once in early July and on suspicion of insider trad- stitutions because the models mained China’s largest stock by the company since its es- again on Sept. 1. It cited a ing. He isn’t reachable; people supervisor, the firm explained are different. By applying a and bond underwriter as well tablishment,” Zhang Youjun, 21.109 billion yuan “cost of in- with knowledge of the situa- all of the departures as “expi- standardized approach, regula- as its biggest asset manager. the firm’s new chairman, vestment” with China Securi- tion say he remains in custody. ration of term of office.” tors will have the ability to set But Beijing-based Citic Se- wrote in an annual report pub- ties Finance Corp., a state- The 12 officers that left se- It said Liu Lefei, the son of a stricter framework based on curities, the brokerage arm of lished Wednesday. backed firm that organized nior positions at Citic Securi- Politburo Standing Committee their own expectations of de- state-owned Citic Group, for Mr. Zhang said authorities stock buying during the crisis ties in recent months included member Liu Yunshan, is no fault and calculations of po- the first time also detailed the helped in “identifying defects period. Any gain or loss would longtime Chairman Wang longer a director or the firm’s tential losses. departure of 12 senior-level and deficiencies,” which he be shared equally between Dongming. There is no evi- vice chairman, posts he held The Basel Committee said executives last year, including said was “of vital importance them, the brokerage said. dence that he has faced in- since 2013. Mr. Liu remains the treatment of sovereign ex- the son of a top politician and to the sustainable and healthy The brief reference attri- vestigation. Aside from the head of affiliate Citic Private posures would be handled un- four executives linked to offi- development” of the firm. butes a year-on-year 43.3 bil- resignation of a director and a Equity Funds Management Co. der a separate review. 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 | Friday, March 25, 2016 **** THE WALL STREET JOURNAL. IN THE MARKETS Stocks Snap Banks Say No to Funds From ECB Policy

BY JON SINDREU

As the European Central Five Weeks Bank prepares to deploy new rounds of cheap lending to eurozone banks, the tepid takeup from what is currently on offer suggests the Of Advances scheme will provide little relief to the sector. The seventh round of the Rallies by shares, oil provided that the economy ECB’s Targeted Longer-Term evolves as expected,” adding to Refinanc- sputter ahead of a upbeat comments from Fed offi- MONEYBEAT ing Opera- long weekend; gold cials this week. tion pro- Federal-funds futures, used gram was posts 2.6% weekly fall by investors and traders to bet launched Thursday, and saw on central-bank policy, showed the program’s lowest takeup BY AARON KURILOFF a 12% likelihood of a rate in- since it began in 2014. crease from the Fed at its April The TLTRO offers cheap U.S. stocks ended five con- policy meeting, according to liquidity to banks in ex- secutive weeks of gains, as a data from CME Group. The odds change for them lending to rally that carried shares to their were 2% a month ago. The prob- households and companies. highest levels of the year pe- ability of a rate increase at the In March the ECB said that

tered out dur- Fed’s June meeting was 41%, starting in June, it will offer KAI PFAFFENBACH/REUTERS THURSDAY’S ing a holiday- compared with 18% a month a new brand of TLTROs at a Mario Draghi’s European Central Bank got poor takeup in the latest round of a financing program. MARKETS shortened ago. ratethatcangoaslowas week. U.S. government bonds the central bank’s deposit fa- The first two rounds— fall, and are now about 2.5% Many analysts believe the The S&P pulled back Thursday as inves- cility—currently at a minus held in September and De- below where they were on new facility, when launched 500 slid back into negative ter- tors took some chips off the ta- 0.4%. Essentially, the ECB cember 2014—were the most the day of the announce- in June, will mostly be used ritory for the year, down 0.4%, ble ahead of a closed market on will be paying banks to bor- successful, with banks taking ment, according to the Euro to roll over the old TLTROs. while the Dow industrials clung Friday, with traders saying lack- row money. That announce- up €83 billion and €130 bil- Stoxx Banks index, which “Miracles should not be to a small gain of 0.5% in a week luster volume exaggerated price ment helped push up the lion, respectively. But they tracks the 30 largest banks expected,” said Elwin de that included the three lowest- swings. share prices of banks on that still fell well short of the in the eurozone. Groot, economist at Ra- volume trading days of 2016. The yield on the 10-year day, even as shares across €400 billion cap the ECB put It was always unlikely bobank. “Demand for credit Many global markets will be Europe were falling hard. on this facility. that these cheaper loans is likely to remain subdued, closed for Good Friday. On Thursday, banks were On Thursday, only 19 would do much beyond despite record-low interest The Dow Jones Industrial Av- still being offered funds at a banks out of more than 300 slightly lowering costs for rates.” erage rose 13.14 points, or less 4.1% 0% interest rate but they bid eligible lenders participated. banks in peripheral coun- than 0.1%, to 17515.73 Thursday, Drop in the price of U.S. crude for only 7.3 billion euros This doesn’t bode well for tries like Italy, Spain and ONLINE bringing its loss to 0.5% for the on Thursday after it rose more ($8.21 billion) worth of the success of the new Greece. They are the banks week. The S&P 500 declined than50%sinceaFeb.11low funds. That is the lowest rounds of TLTROs the ECB that still need to borrow For more 0.77, or less than 0.1%, Thursday takeup since the program’s will launch in June, and per- from the central bank. Ger- MoneyBeat blog to 2035.94, for a weekly fall of inception in September 2014. haps for the share prices of man and French banks have WSJ posts, go to 0.7%. The Nasdaq Composite Treasury note rose to 1.902%, The TLTRO program has eurozone banks. so much liquidity that they .COM blog.wsj.com/ gained 4.64, or 0.1%, to 4773.50, from 1.873% Wednesday and disappointed from the start. Bank shares continue to actually lend to the ECB. MoneyBeat shedding 0.5% for the week. 1.871% last Friday. Bond prices U.S. oil prices also snapped a fall as yields rise. five-week winning streak after Mary Ann Hurley, vice presi- The same goes for the re- which has to be given up to tional pull of negative bond rising more than 50% since a dent of trading in Seattle at D.A. PRICES covery in credit. According hold gold. As TIPS yields fell, yields in Japan and Germany low on Feb. 11. Davidson & Co., said investors to Bank of America Merrill it is only natural that gold in particular,” said Ian Har- Crude fell 4.1% for the week tilted their positioning toward Lynch, the extra yield avail- should have risen. nett, chief investment strate- to $39.46 a barrel as data bonds into “neutral” in case of ContinuedfrompageC1 able from U.S. junk bonds All this brings us back to gist of London-based Abso- showed U.S. supplies reaching an “unexpected surprise over for the past five years, and compared with Treasurys the original story. Rising oil lute Strategy Research. all-time highs and the dollar the long weekend.” the message from consumer has dropped to 6.7 percent- prices are the wrong sort of Could falling TIPS yields strengthened. Gold fell 2.6% this week to stocks is that caution reigns. age points from 7 at the inflation for growth. Some be merely a side effect of “Oil’s tired of running higher $1,221.40 an ounce. The story from most other start of the year, and a peak asset prices may be pushed rising inflation expectations and the dollar’s tired of running The Stoxx Europe 600 de- sectors is too closely related of 8.9 percentage points in up as more expensive oil re- at a time when Treasury lower, so we’re getting this clined 1.5% Thursday. to other markets to be prop- mid-February. But the junk- moves the risk of defaults yields are suppressed by for- countertrend move that’s taking Japan’s Nikkei Stock Average erly interpreted. Energy and bond market was engulfed in and knock-on financial dislo- eign demand? It is possible, the market with it,” said Bob fell 0.6% after a summary of material stocks are up, but fear about widespread de- cations. But this is just noise but it raises a much bigger Doll, senior portfolio manager opinions from Bank of Japan this is just a reflection of faults by energy companies, around an underlying market argument. Are foreign yields at Nuveen Asset Management. policy makers showed rising higher oil and commodity so again this may merely re- signal which is negative low because bonds are being Hints that the Federal Re- tension over negative rates. prices. The two best-per- flect higher oil prices. about the economy. manipulated by central serve could raise interest rates Early Friday, the Nikkei was up forming sectors are the In the other direction, the There is one more objec- banks, or because global de- sooner than expected fueled 0.6%. bond-like utilities and tele- rise in demand for gold tion to this interpretation. It mand is in the pits? If it is gains in the dollar. The WSJ Stocks in Shanghai fell 1.6% coms, up 12% and 13% re- doesn’t help the case for is that nominal bond yields just manipulation, there is Dollar Index, which measures Thursday amid concerns about spectively by Tues- concern as much as it might in the U.S. can hardly be ex- little to worry about. If it is the buck against a basket of 16 increased short selling and after day’s close, but this is seem. Gold is the ultimate in pected to rise when the Eu- a sign of weak demand, that currencies, rose 0.1% Thursday Chinese authorities guided the mostly a reflection of the inflation protection, but has ropean and Japanese central is bad news for the U.S., too. to 87.89, its fifth trading day in yuan weaker against the dollar lower Treasury yields, to no income—so it tends to banks are engineering nega- The truth is probably both— a row of increases. in the biggest one-day deprecia- which they are often seen as move in the opposite direc- tive yields, on bonds matur- which is uncomfortable for Federal Reserve Bank of St. tion since early January. Early an alternative. Restating the tion to TIPS yields, which ing as far out as 12 years in anyone who thinks the re- Louis President James Bullard Friday, the index was up 0.2%. puzzle doesn’t explain it. canbeseenastheincome the case of Japan. cent market rebound shows said Thursday that “the next —Min Zeng Treasury yields are being economic worries are behind rate increase may not be far off contributed to this article. held back by “the gravita- us. The Wrong Sort of Inflation Inflation expectations priced into the bond market for Borrowing Benchmarks | WSJ.com/bonds Treasury Sets Sales of $165 Billion in Debt the next 10 years have rebounded, but real yields have not. The Treasury Department will be received by noon Monday; 10-year Money Rates March 24, 2016 auction $165 billion in securities competitive tenders, by 1 p.m. 2.5% next week, comprising $134 bil- Tuesday: $20 billion in 52- Key annual interest rates paid to borrow or lend money in U.S. and lion in new debt and $31 billion week bills, dated March 31, 2016, international markets. Rates below are a guide to general levels but in previously auctioned debt. De- maturing March 30, 2017. Cusip is don’t always represent actual transactions. tails (all with minimum denomi- 912796JJ9. 2.0 Inflation Feb. index Chg From (%) nations of $100): Also, $34 billion in five-year Week —52-WEEK— Treasury yield level Jan. '16 Feb. '15 Monday: $31 billion in 13- notes, dated March 31, 2016, ma- Latest ago High Low week bills, a reopening of an issue turing March 31, 2021. Cusip: U.S. consumer price index Commercial paper Breakeven first sold on Dec. 31, 2015, matur- 912828Q37. 1.5 All items 237.111 0.08 1.0 30 to 270 days n.q...... Inflation ing June 30, 2016. Cusip number Noncompetitive tenders for Core 245.680 0.47 2.3 Commercial paper (AA financial) is 912796HY8. the bills must be received by 11 International rates 90 days 0.57 0.53 0.64 0.06 Also, $26 billion in 26-week a.m. Tuesday; competitive tenders, Inflation bills, dated March 31, 2016, ma- by 11:30 a.m. Noncompetitive ten- 1.0 expectations rise Week 52-Week Euro commercial paper Latest ago High Low 30 day n.q. -0.14 -0.02 -0.14 turing Sept. 29, 2016. Cusip: ders for the notes must be re- Two month n.q. n.q. -0.01 -0.09 912796JM2. ceived by noon Tuesday; competi- Prime rates Three month n.q. n.q. -0.01 -0.08 Also, $26 billion in two-year tive tenders, by 1 p.m. U.S. 3.50 3.50 3.50 3.25 Four month n.q. n.q. 0.02 0.00 notes, dated March 31, 2016, ma- Wednesday: $28 billion in Canada 2.70 2.70 2.85 2.70 Five month n.q. n.q. 0.03 0.01 0.5 Japan 1.475 1.475 1.475 1.475 Six month n.q. n.q. 0.04 0.02 turing March 31, 2018. Cusip: seven-year notes, dated March 31, Policy Rates 912828Q45. 2016, maturing March 31, 2023. Real yields TIPS yield Libor Noncompetitive tenders for Cusip: 912828Q29. keep falling Euro zone 0.00 0.00 0.05 0.00 One month 0.43500 0.43990 0.44185 0.17625 Switzerland 0.50 0.50 0.50 0.50 the bills must be received by 11 Noncompetitive tenders for Three month 0.62860 0.63900 0.64195 0.27075 0 Britain 0.50 0.50 0.50 0.50 Six month 0.91090 0.91740 0.91740 0.39840 a.m. EDT Monday and competitive the notes must be received by Australia 2.00 2.00 2.25 2.00 2015 ’16 One year 1.23115 1.24470 1.24470 0.68465 tenders, by 11:30 a.m. Noncompet- noon Wednesday; competitive itive tenders for the notes must tenders, by 1 p.m. Source: Thomson Reuters THE WALL STREET JOURNAL. Overnight repurchase Euro Libor U.S. 0.37 0.44 0.51 0.07 One month -0.330 -0.324 -0.016 -0.330 Three month -0.249 -0.246 0.018 -0.249 Six month -0.139 -0.129 0.071 -0.140 52-Wk % 52-Wk % 52-Wk % U.S. government rates New Highs and Lows | WSJ.com/stocks One year -0.017 -0.008 0.199 -0.028 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Discount The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Teladoc TDOC 9.85 -3.9 CondorHospltyPfdA CDORP 12.05 0.1 FederatedNatlHldg FNHC 18.68 -2.9 1.00 1.00 1.00 0.75 (Euribor) Market stocks that hit a new 52-week intraday high or low in the latest session. VaalcoEnergy EGY 0.96 -2.0 CyrusOne CONE 44.05 2.1 FiestaRestaurant FRGI 31.19 ... Euro interbank offered rate % CHG-Daily percentage change from the previous trading session. ViolinMemory VMEM 0.45 -4.1 eBay6%Nts2056 EBAYL 25.05 0.1 FTDorseyWrightDyn FVC 19.96 ... Federal funds One month -0.331 -0.322 -0.012 -0.331 Thursday, March 24, 2016 VivintSolar VSLR 2.69 -6.8 ElbitSystems ESLT 100.38 -0.8 GlbEagleEnt ENT 7.96 ... Effective rate 0.4000 0.3900 0.4000 0.0600 Three month -0.242 -0.234 0.021 -0.242 Six month -0.134 -0.131 0.089 -0.141 52-Wk % 52-Wk % 52-Wk % XeriumTechnologies XRM 4.82 5.0 Equinix EQIX 323.00 0.4 GordmansStores GMAN 2.14 -3.9 High 0.5625 0.5625 0.5900 0.3100 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Five9 FIVN 9.08 4.3 GreatSouthernBncp GSBC 35.47 0.7 Low 0.2500 0.3000 0.3500 0.0200 One year -0.005 -0.003 0.201 -0.028 GulfIslandFab GIFI 7.65 -3.8 GranitCnstr GVA 47.47 ... UNITIL UTL 42.11 1.7 NYSE Arca highs - 3 FlexCredScoreUSLg LKOR 52.25 -0.4 Bid 0.3700 0.3600 0.5500 0.0300 Value 52-Week HovnanEnt pfA HOVNP 2.30 -5.0 NYSE highs - 58 HnckJ PfdInco HPI 22.00 0.1 U.S.BncpDepPfdH USBpO 26.25 0.3 ALPSSectorLowVol SLOW 27.10 -0.1 FrancescasHldgs FRAN 19.64 3.6 Offer 0.4000 0.4000 0.5600 0.0500 Latest Traded High Low InfinityPhar INFI 5.04 -4.2 AccentureClA ACN 114.44 6.2 Inphi IPHI 33.57 1.7 VEREITPfdSeriesF VERpF 25.17 0.1 CambriaSovHiYdBd SOVB 27.53 0.2 Hardinge HDNG 12.03 4.7 InfoSonics IFON 0.79 -12.4 AllncBrnstnNa AFB 14.49 0.1 InvescoCAValueMun VCV 13.87 0.2 Valspar VAL 105.91 0.8 DB3xJapanGovtBdFut JGBT 32.00 1.6 HomeBancorp HBCP 27.25 0.5 Treasury bill auction DTCC GCF Repo Index Invuity IVTY 6.06 -5.4 AlliantEnergy LNT 73.08 0.5 HnckJPrem PDT 15.13 -0.7 Vectren JMGlobalHoldingWt WYIGW 0.17 13.3 4 weeks 0.270 0.280 0.295 0.000 Treasury 0.489 96.200 0.639 0.075 VVC 50.15 0.5 JackintheBox JACK 61.78 ... AmTrustFinlDepPfdE AFSIpE 25.31 0.3 KimcoRltyDep6PfdI KIMpI 26.54 0.3 NYSE Arca lows - 2 MMACapitalMgmt MMAC 16.00 1.2 13 weeks 0.300 0.335 0.350 0.000 MBS 0.480 116.250 0.705 0.087 WasteMgt WM 59.12 0.3 Kopin KOPN 1.57 -1.8 AutoZone AZO 810.00 -0.3 KimcoRealtyPfdJ KIMpJ 25.94 0.2 iPathBloomLeadTR LD 31.40 -8.9 Markit MRKT 34.55 2.2 26 weeks 0.440 0.510 0.585 0.065 Watsco WSO 133.85 2.1 KornitDigital KRNT 8.91 -2.2 BlkRkCA MI Tr BFZ 16.34 -0.2 McCormick MKC 96.46 0.5 ProShrUSUtil SDP 36.02 -2.3 OFSCapital OFS 12.72 1.5 Open Implied Xylem Inc. XYL 39.82 1.1 MidatechPharmaADR 3.33 -6.7 Settle Change Interest Rate BlkrckMunHlCAQlty MUC 15.70 0.1 McCormickVtg MKC/V 96.14 2.6 Oclaro OCLR 5.41 3.5 MTP ModusLink Secondary market BlkrckMunHlNJQlty MUJ 15.09 -0.3 MistrasGroup MG 25.73 1.2 NYSE MKT highs - 9 Old2ndCapTr OSBCP 10.33 0.4 MLNK 1.57 -0.6 NYSE lows - 20 Omnicell OMCL 25.21 -3.3 BlkRkMunivestFdII MVT 17.06 -0.1 NewYork NWY 3.75 3.1 EtnVncNY MIT EVY 14.65 -0.8 SummitFnlGp SMMF 15.60 0.8 Fannie Mae DTCC GCF Repo Index Futures ArmstrongFlooring AFIw 11.87 6.0 PaceHoldingsUn PACEU 9.20 -7.8 BlkrckMunYdMIQlty MIY 14.50 ... NuvCT Prm NTC 13.14 0.2 EtnVncPA MIT EVP 12.97 0.1 Tecogen TGEN 6.50 14.0 30-year mortgage yields Treasury Mar 99.565 -0.005 5797 0.435 BTGroupADR BT 31.09 -1.2 ParagonShippingClA PRGN 1.00 2.8 BrookfieldTRFd HTR 24.45 0.4 NuvMD Prm NMY 13.23 -0.1 InfuSysHldgs INFU 3.74 -0.8 UnitedBancshares UBOH 19.73 -1.2 Treasury Apr 99.540 -0.005 2967 0.460 BlockHR HRB 26.60 -1.4 Perceptron PRCP 4.73 4.4 30 days 3.239 3.231 3.750 2.979 CharlesSchwabPfdD SCHWpD 25.75 ... NuvMI Qual NUM 14.24 0.1 NuvCA Fd3 NZH 15.05 0.5 VanguardTotIntlBd BNDX 54.52 0.1 Treasury May 99.515 -0.005 2661 0.485 ClayEngy CWEI 7.26 -3.9 PerformantFin PFMT 1.51 2.5 60 days 3.270 3.263 3.788 2.998 ChunghwaTelecomADR CHT 33.84 1.1 NuvMuniMkt NMO 14.28 -0.1 NuvDivAdv2 NXZ 14.76 0.3 Vericel VCEL 6.14 15.6 DorianLPG LPG 8.67 -3.6 PopeyesLouisiana PLKI 49.99 2.0 CitigroupDep.Pfd.S CpS 25.75 0.4 NuvNJ NXJ 14.16 0.1 NuvDivAdv 3 NZF 14.84 -0.1 ForesightEnergy FELP 1.07 -2.7 PortolaPharm PTLA 20.00 -29.2 Weekly survey DDRPfdJ DDRpJ 26.48 -0.8 NuveenQualMuniFd NQI 14.13 0.6 NuvDivAdvMuniIncm NVG 15.05 0.1 Nasdaq lows - 54 Other short-term rates Frontline FRO 7.42 0.6 QuantumFuel QTWW 0.11 -10.1 Latest Week ago Year ago DreyfStMnBd DSM 8.55 -0.2 NuvSelQlty NQS 14.61 ... NuvMuniIncoOpp NMZ 14.09 -0.4 AcordaThera ACOR 25.11 0.3 GAINCapHldgs GCAP 6.03 0.5 REGENXBIO RGNX 9.47 -9.8 Week 52-Week DuPontFabros DFT 40.55 0.9 PNCFinSvsDep.Pfd.P PNCpP 29.19 0.5 Skyline SKY 8.12 14.5 AddusHomeCare ADUS 15.33 -0.2 HarteHanks HHS 2.50 0.8 RadNet RDNT 4.78 1.0 Latest ago high low Freddie Mac EdisonInt EIX 71.93 -0.3 PinnacleWestCap PNW 73.70 0.3 AegerionPharm AEGR 3.64 2.1 Lannett LCI 17.08 -10.1 RevolutionLightTch RVLT 5.29 -1.4 30-year fixed 3.71 3.73 3.69 ElPasoElectric EE 44.97 1.7 PublicStoragePfdT PSApT 26.23 0.2 NYSE MKT lows - 1 AlbanyMolecular AMRI 13.77 -0.3 NaviosMaritime NNA 1.53 0.6 RiceBranTechs RIBT 1.07 -7.6 Call money 15-year fixed 2.96 2.99 2.97 EquityCommonNt42 EQCO 25.15 0.5 Qwest7%Nts2056 CTAA 25.51 0.1 CorindusVascular CVRS 0.73 10.1 Alcobra ADHD 3.76 0.3 ScrippsEW SSP 15.64 -0.2 SPS Commerce SPSC 38.35 -0.2 2.25 2.25 2.25 2.00 Five-year ARM 2.89 2.93 2.92 EversourceEnergy ES 58.29 -0.2 SCANA SCG 68.95 0.8 AlimeraSciences ALIM 1.60 -2.4 Fabrinet SeniorHousingNts46 StoneEnergy SGY 0.91 0.9 SagentPharms SGNT 11.57 -0.1 FN 30.91 4.9 SNHO 25.10 0.1 Nasdaq highs - 29 AralezPharma ARLZ 3.42 1.7 FedAgri C AGM 39.12 1.2 SeritageGrowthA SRG 49.24 3.4 SunEdison SUNE 1.15 -4.7 SkySolarADR SKYS 2.14 4.8 Notes on data: Adamis ADMP 6.74 10.9 Blucora BCOR 4.79 -1.4 FedAgrMtg A AGM/A 37.66 11.0 Teleflex TFX 155.05 -0.1 TeekayTankers TNK 3.26 2.6 SteelExcel SXCL 9.63 -9.4 U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S. AveXis CECO Env CECE 5.60 4.6 AVXS 27.50 11.0 SunOpta STKL 4.38 -3.9 prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; BioPathHldgs BPTH 2.13 5.0 ChemoCentryx CCXI 2.26 ... SurModics SRDX 17.45 -0.1 Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF Online BridgfordFoods BRID 13.83 4.3 CombiMatrix CBMX 3.95 0.2 Taitron A TAIT 0.73 -6.6 Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable >> Broadvision BVSN 6.87 9.2 CoriumIntl CORI 3.53 -1.6 UnitedTherapeutics UTHR 107.51 -10.5 CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on During the trading day, 52-week highs and lows are updated hourly CelatorPharm CPXX 12.73 -14.8 CorvusPharma CRVS 14.00 ... Veracyte VCYT 4.21 8.6 NYSE Liffe US. at WSJMarkets.com. Lists for each market are available free, along CommerceUnionBcshs CUBN 16.74 11.7 DSHealthcareGroup DSKX 0.65 -35.3 VictoryCEMPEMVol CEZ 24.99 -0.1 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; with easy access to charts and headlines. CondorHospltyPfdB CDORO 31.15 0.1 DepoMed DEPO 12.25 1.3 XploreTechnologies XPLR 3.54 -0.5 General Electric Capital Corp.; Tullett Prebon Information, Ltd. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, March 25, 2016 | C5 MUTUAL FUNDS

This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is Net YTD made solely by the Offer to Purchase, dated March 25, 2016, and the related Letter of Transmittal and any amendments or supplements thereto. Explanatory Notes Data provided by Fund NAV Chg % Ret The Offeror (as defined below) is not aware of any state where the making of the Offer is prohibited by any administrative or judicial action Top 250 mutual-funds listings for Nasdaq-published share classes with MCapGro 71.44 +0.02 -2.6 net assets of at least $500 million each. NAV is net asset value. pursuant to any valid state statute. If the Offeror becomes aware of any valid state statute prohibiting the making of the Offer or the acceptance Percentage performance figures are total returns, assuming reinvestment MCapVal 26.05 +0.03 4.5 of the Shares pursuant thereto, the Offeror will make a good faith effort to comply with that state statute or seek to have such statute declared of all distributions and after subtracting annual expenses. Figures don’t N Horiz 39.43 +0.12 -7.1 inapplicable to the Offer. If, after a good faith effort, the Offeror cannot do so, the Offeror will not make the Offer to, nor will tenders reflect sales charges (“loads”) or redemption fees. NET CHG is change in N Inc 9.50 -0.01 2.1 YTD%RET 3-YR be accepted from or on behalf of, the holders of Shares in that state. Except as set forth above, the Offer is being made to all holders of Shares. NAV from previous trading day. is year-to-date return. OverS SF r 8.68 -0.08 -3.4 %RET is trailing three-year return annualized. R2015 13.78 -0.03 0.7 e f g -Ex-distribution. -Previous day’s quotation. -Footnotes x and s apply. R2020 19.73 -0.04 0.2 j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. NOTICE OF OFFER TO PURCHASE FOR CASH p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock R2025 14.92 -0.03 -0.2 split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. R2030 21.68 -0.05 -0.6 x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to R2035 15.63 -0.04 -1.0 incomplete price, performance or cost data. NE-Not released by Lipper; All Outstanding Shares of Common Stock data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of R2040 22.28 -0.05 -1.3 period. SmCapStk 37.51 +0.13 -2.8 Value 31.14 -0.06 -0.4 of Thursday, March 24, 2016 Net YTD Net YTD S Fund NAV Chg % Ret Fund NAV Chg % Ret Schwab Funds ExtMktAd r 48.47 +0.11 -3.4 S&P Sel 31.59 -0.02 0.1 A IntAd r 34.33 -0.38 -4.5 American Century Inv TotMktAd r 58.35 ... -0.5 Ultra 33.91 -0.05 -3.2 First Eagle Funds T American Funds Cl A GlbA 52.52 -0.19 2.3 TIAA/CREF Funds AmcpA p 25.77 +0.03 -0.7 FMI Funds EqIdxInst 15.00 ... -0.5 AMutlA p 34.55 +0.01 2.6 LgCap 19.06 +0.01 2.4 Tweedy Browne Fds BalA p 23.95 -0.01 0.9 FPA Funds GblValue 23.63 -0.26 -3.4 BondA p 12.80 -0.02 2.1 FPACres 30.80 -0.02 -0.8 CapIBA p 56.69 -0.06 2.4 FrankTemp/Franklin A V CapWGrA 42.64 -0.10 -1.2 CA TF A p 7.55 -0.01 1.3 VANGUARD ADMIRAL THE FRESH MARKET, INC. EupacA p 43.59 -0.22 -3.9 Fed TF A p 12.40 ... 1.1 500Adml 187.73 -0.07 0.1 FdInvA p 50.26 ... -0.6 Growth A p 72.45 -0.09 -1.3 BalAdml 29.32 ... 0.8 at GwthA p 39.68 +0.04 -3.9 IncomeA p 2.10 -0.01 1.5 CAITAdml 11.92 ... 1.2 HI TrA p 9.44 -0.05 2.4 RisDv A p 49.32 +0.01 3.3 CapOpAdml r 112.87 -0.25 -4.9 ICAA p 33.91 +0.05 2.0 FrankTemp/Franklin C EMAdmr 28.06 -0.13 2.8 $28.50 PER SHARE, NET IN CASH IncoA p 20.43 -0.03 1.8 Income C t 2.12 -0.01 1.3 EqIncAdml 63.05 +0.01 2.5 N PerA p 34.59 -0.07 -4.0 FrankTemp/Temp A ExtndAdml 61.16 +0.14 -3.4 NEcoA p 34.22 -0.02 -4.8 GlBond A p 11.42 -0.02 -0.6 GNMAAdml 10.74 -0.02 1.4 Pursuant to the Offer to Purchase dated March 25, 2016 NwWrldA 49.22 -0.13 -1.6 Growth A p 21.24 -0.19 -3.1 GrwthAdml 53.90 +0.02 -1.3 SmCpA p 41.43 +0.07 -5.0 FrankTemp/Temp Adv HlthCareAdml r 82.07 +0.02 -9.5 by TxExA p 13.15 ... 1.2 GlBondAdv p 11.37 -0.03 -0.5 HYCorAdml r 5.58 -0.04 2.0 WshA p 38.59 ... 0.9 InfProAd 26.01 -0.06 3.2 AMG Managers Funds H IntlGrAdml 64.27 -0.36 -4.2 YacktmanFd 21.52 ... 3.1 Harbor Funds ITBondAdml 11.54 -0.01 3.1 POMEGRANATE MERGER SUB, INC. AQR Funds CapApInst 56.52 -0.04 -7.1 ITIGradeAdml 9.83 -0.01 2.7 MgdFutStrI 10.21 -0.01 0.3 IntlInst r 58.46 -0.60 -1.6 LTGradeAdml 10.35 ... 5.9 Artisan Funds MidCpAdml 147.18 -0.11 -0.8 a wholly owned subsidiary of Intl Inv 26.96 -0.21 -6.0 I MuHYAdml 11.38 ... 1.4 MuIntAdml 14.33 ... 1.1 Invesco Funds A MuLTAdml 11.81 ... 1.3 B EqIncA 9.42 -0.01 -1.7 Baird Funds MuLtdAdml 11.04 ... 0.5 POMEGRANATE HOLDINGS, INC. CorBdInst 11.07 -0.02 2.5 J MuShtAdml 15.82 ... 0.3 BlackRock Funds A PrmcpAdml r 100.00 -0.21 -3.2 John Hancock Class 1 GlblAlloc p 17.56 -0.05 -1.6 REITAdml r 114.70 +0.07 2.7 Pomegranate Merger Sub, Inc., a Delaware corporation (the “Offeror”or“we”) and a wholly owned subsidiary of Pomegranate Holdings, Inc., a Delaware LSBalncd 14.12 -0.02 -0.8 BlackRock Funds C SmCapAdml 52.04 +0.13 -1.6 corporation (“Parent”), is offering to purchase all of the issued and outstanding shares of common stock, par value $0.01 per share (the “Shares”), of The Fresh Market, LSGwth 14.55 -0.03 -1.9 GlblAlloc t 15.97 -0.05 -1.8 STBondAdml 10.52 ... 1.2 Inc., a Delaware corporation (“The Fresh Market”), at a purchase price of $28.50 per Share, net to the holders thereof, payable in cash (the “Offer Price”), without John Hancock Instl BlackRock Funds Inst STIGradeAdml 10.64 -0.01 1.2 interest, less any applicable tax withholding, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated March 25, 2016 (the“Offer to DispValMCI 18.80 -0.03 -1.8 EqtyDivd 20.96 -0.04 -0.2 TotBdAdml 10.84 -0.01 2.5 Purchase”), and in the related Letter of Transmittal (the “Letter of Transmittal” which, together with the Offer to Purchase, as each may be amended or supplemented JPMorgan Inst Class GlblAlloc 17.66 -0.06 -1.5 TotIntBdIdxAdm 21.72 -0.02 3.2 from time to time in accordance with the Merger Agreement described below, collectively constitute the “Offer”). Following the consummation of the Offer, and subject MdCpVal 34.72 -0.01 2.2 HiYldBd 7.13 -0.04 1.3 TotIntlAdmIdx r 23.66 -0.17 -2.1 to the conditions described in the Offer to Purchase, the Offeror intends to effect the Merger described below. JPMorgan R Class StratIncOpptyIns 9.65 ... -0.7 TotStAdml 50.30 +0.01 -0.5 CoreBond 11.77 -0.01 2.2 TxMIn r 11.32 -0.09 -3.8 THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT, JPMorgan Select Cls ValAdml 31.85 -0.02 0.7 D CoreBond 11.75 -0.01 2.2 NEW YORK CITY TIME, ON APRIL 21, 2016 (ONE MINUTE AFTER 11:59 P.M., Dimensional Fds WdsrllAdml 59.01 -0.14 -0.7 ShtDurBnd 10.86 ... 0.6 WellsIAdml 60.78 -0.04 3.0 NEW YORK CITY TIME, ON APRIL 21, 2016), UNLESS THE OFFER IS EXTENDED. 5GlbFxdInc 11.08 -0.01 1.7 USLgCpCorPls 25.91 -0.02 -3.4 EmgMktVa 21.64 -0.08 6.1 WelltnAdml 63.80 -0.04 1.0 EmMktCorEq 16.50 -0.06 4.7 WndsrAdml 62.53 -0.10 -3.2 The purpose of the Offer is for Parent, through the Offeror, to acquire control of, and the entire equity interest in, The Fresh Market. Parent is controlled by certain L equity funds managed by Apollo Management VIII, L.P. (“Management VIII”). Fixd 10.31 ... 0.4 VANGUARD FDS Lazard Instl IntlCoreEq 11.07 -0.08 -2.8 DivdGro 22.73 -0.03 1.7 The Offer is being made in connection with the Agreement and Plan of Merger, dated as of March 11, 2016, by and among The Fresh Market, Parent and the Offeror EmgMktEq 14.27 -0.06 6.2 IntSmCo 16.93 -0.07 -1.6 GNMA 10.74 -0.02 1.4 (as it may be amended from time to time, the “Merger Agreement”), pursuant to which, after the completion of the Offer and the satisfaction or waiver of certain Loomis Sayles Fds IntSmVa 18.22 -0.13 -2.5 HlthCare r 194.56 +0.04 -9.5 conditions, the Offeror will merge with and into The Fresh Market, with The Fresh Market surviving as a wholly owned subsidiary of Parent (the “Merger”), and each LSBondI 13.05 -0.04 1.6 Dimensional Fds IntlVal 30.38 -0.21 -2.3 outstanding Share (other than Shares subject to forfeiture conditions, Shares owned by The Fresh Market as treasury stock and Shares owned by any stockholders of The Lord Abbett A US CoreEq1 17.16 ... -0.1 INSTTRF2020 19.31 -0.03 0.6 Fresh Market who have properly exercised appraisal rights under Section 262 of the General Corporation Law of the State of Delaware (the “DGCL”) will be automatically ShtDurIncmA p 4.31 ... 0.9 canceled and converted into the right to receive an amount in cash equal to the Offer Price, without interest and less any applicable tax withholding. As a result of the US CoreEq2 16.33 +0.01 -0.1 INSTTRF2025 19.13 -0.04 0.3 Lord Abbett F Merger, the Shares will cease to be publicly traded, and The Fresh Market will become a wholly owned subsidiary of Parent. Ray Berry and Brett Berry, who collectively US Small 28.11 +0.09 -0.9 INSTTRF2030 18.94 -0.05 ... ShtDurIncm 4.31 ... 0.9 LifeCon 18.00 -0.03 1.3 own approximately 9.8% of the Shares, have agreed to exchange a portion of their Shares (the “Rollover Shares”) pursuant to the Rollover, Contribution and Exchange US SmCpVal 30.35 +0.11 -0.5 Agreement dated as of March 12, 2016 (the “Rollover Agreement”), by and among the stockholders affiliated with Ray Berry and Brett Berry party thereto (collectively, USLgVa 30.60 -0.01 -0.7 LifeGro 27.19 -0.06 -0.3 the “Rollover Stockholders”) and Parent, for an indirect equity interest in Parent, and have agreed not to tender the Rollover Shares in the Offer. The Offer, the Merger Dodge & Cox M LifeMod 23.18 -0.04 0.5 and the other transactions contemplated by the Merger Agreement, but excluding, in any event, the related financing, are collectively referred to as the "Transactions." Balanced 92.16 -0.17 -0.4 Metropolitan West Primcp r 96.52 -0.21 -3.2 The Merger Agreement is more fully described in Section 11—“Purpose of the Offer and Plans for The Fresh Market; Transaction Documents” of the Offer to Purchase. TotRetBd 10.78 -0.01 1.9 PrmcpCor 20.46 -0.05 -1.7 Income 13.38 -0.02 1.7 The Offer is not subject to any financing condition. The Offer is conditioned upon, among other things, the following: (a) the number of Shares validly tendered and Intl Stk 34.39 -0.45 -5.7 TotRetBdI 10.77 -0.02 1.8 SelValu r 25.70 ... -0.6 TRBdPlan 10.15 -0.01 1.9 not properly withdrawn in accordance with the terms of the Offer, excluding any Shares tendered pursuant to guaranteed delivery procedures that have not yet Stock 155.92 -0.30 -1.8 STAR 23.13 -0.05 -0.7 been “received” by the American Stock Transfer & Trust Company, LLC, (the “Depositary and Paying Agent”), together with the Shares then owned by the Offeror, DoubleLine Funds MFS Funds Class A STIGrade 10.64 -0.01 1.2 other than Rollover Shares, represents at least one share more than 50% of the then-outstanding Shares (the “Minimum Condition”); (b) the expiration or early termination TotRetBdI NA ... NA ValueA p 33.16 -0.05 1.1 TgtRe2015 14.35 -0.03 0.8 of the waiting period applicable to the Offer and the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”); and TotRetBdN NA ... NA MFS Funds Class I TgtRe2020 27.30 -0.06 0.6 (c) subject to certain exceptions, the absence, since March 11, 2016, of any effect, change, event or occurrence that, individually or in the aggregate, has had or would ValueI 33.35 -0.05 1.2 TgtRe2025 15.66 -0.04 0.3 reasonably be expected to have a Material Adverse Effect (as defined in the Merger Agreement). The Offer is also subject to certain other terms and conditions. See F Mutual Series TgtRe2030 27.71 -0.06 ... Section 13—“Conditions of the Offer.” GlbDiscA 28.12 -0.17 -2.6 Fidelity Advisor A TgtRe2035 16.78 -0.04 -0.4 The offering period of the Offer will expire at the Expiration Time. The term “Expiration Time” means 12:00 midnight, New York City time, on April 21, 2016 GlbDiscz 28.62 -0.17 -2.5 NwInsghtA p 25.25 -0.04 -2.4 TgtRe2040 28.27 -0.07 -0.6 (one minute after 11:59 P.M. New York City time, on April 21, 2016), unless the Offeror, in accordance with the Merger Agreement, has extended the offering period of Fidelity Advisor I TgtRe2045 17.66 -0.04 -0.7 the Offer, in which event the term “Expiration Time” will mean the latest time and date at which the offering period of the Offer, as so extended by the Offeror, will NwInsghtI 25.74 -0.04 -2.4 O TgtRe2050 28.28 -0.08 -0.7 expire. Shares tendered pursuant to the Offer may be withdrawn by following the procedures set forth in Section 4—“Withdrawal Rights” of the Offer to Purchase for Fidelity Freedom Oakmark Funds Cl I TgtRetInc 12.59 -0.02 1.5 withdrawing Shares in a timely manner, at any time on or prior to the Expiration Time, and, if not previously accepted for payment at any time, after May 24, 2016 FF2020 14.45 -0.03 -0.6 EqtyInc 28.56 -0.06 ... TotIntBdIxInv 10.86 -0.01 3.1 pursuant to Securities and Exchange Commission (“SEC”) regulations. FF2025 12.33 -0.02 -0.9 Oakmark 61.70 -0.11 -1.8 WellsI 25.09 -0.02 3.0 The Board of Directors of The Fresh Market (with the exception of Ray Berry, who recused himself from the Board meeting and all Board deliberations FF2030 14.98 -0.03 -1.5 OakmrkInt 20.18 -0.33 -5.5 Welltn 36.95 -0.02 1.1 on the Transactions) has unanimously (a) determined that the Transactions are fair to and in the best interests of The Fresh Market and its stockholders FreedomK2020 13.45 -0.03 -0.5 Old Westbury Fds WndsrII 33.25 -0.08 -0.7 (other than the Rollover Stockholders), (b) declared the Merger Agreement and the Transactions advisable and (c) recommended that The Fresh Market’s FreedomK2025 13.98 -0.03 -0.9 LrgCpStr 12.30 -0.04 -1.4 VANGUARD INDEX FDS stockholders tender their Shares in the Offer. FreedomK2030 14.12 -0.03 -1.5 Oppenheimer Y 500 187.74 -0.07 0.1 If as a result of the Offer, the Offeror holds Shares (other than Rollover Shares) that represent at least one Share more than 50% of all the issued and outstanding FreedomK2035 14.48 -0.03 -1.9 DevMktY 30.42 -0.12 1.4 ExtndIstPl 150.91 +0.33 -3.4 Shares, Parent, the Offeror and The Fresh Market will, subject to the satisfaction or waiver of the remaining conditions set forth in the Merger Agreement, as soon as FreedomK2040 14.51 -0.04 -1.9 IntGrowY 35.20 -0.22 -1.9 TotBd2 10.80 -0.01 2.5 practicable, consummate the Merger under the provisions of Section 251(h) of the DGCL without prior notice to, or any action by, any other stockholder of The Fresh Fidelity Invest TotIntl 14.15 -0.10 -2.0 Market. We expect the Merger to occur without a “subsequent offering period” within the meaning of Rule 14d-11 under the Securities Exchange Act of 1934. We do not AMgr50% 16.02 -0.04 -0.1 P TotSt 50.28 ... -0.5 expect there to be a significant period of time between the consummation of the Offer and the consummation of the Merger. Balanc 21.01 -0.02 -1.0 Parnassus Fds VANGUARD INSTL FDS Provided that the Merger Agreement has not been terminated in accordance with its terms, if at the scheduled Expiration Time of the Offer any of the conditions to BalancedK 21.02 -0.01 -0.9 ParnEqFd 37.50 -0.09 1.4 BalInst 29.32 -0.01 0.8 the Offer have not been satisfied or waived, Parent will cause the Offeror to extend the Offer to permit the satisfaction of all Offer Conditions (as set forth in BluCh 64.61 +0.01 -6.3 PIMCO Fds Instl DevMktsIndInst 11.34 -0.09 -3.7 Section 13—“Conditions of the Offer” of the Offer to Purchase, the “Offer Conditions”), except that, in certain circumstances, if the sole remaining unsatisfied Offer Contra 95.25 -0.16 -3.0 AllAsset NA ... NA ExtndInst 61.15 +0.13 -3.5 Condition is the Minimum Condition, the Offeror will only be permitted to extend the Offer on up to two occasions of 5 business days each (or such other duration as ContraK 95.20 -0.16 -3.0 ShortT NA ... NA GrwthInst 53.90 +0.02 -1.3 Parent and The Fresh Market may agree) unless The Fresh Market requests the Offeror to further extend the Offer. If the debt financing is not available at the scheduled CpInc r 9.06 -0.04 ... TotRt 10.12 ... 1.2 InPrSeIn 10.60 -0.02 3.2 Expiration Time of the Offer and all the Offer Conditions are satisfied, the Offeror may, subject to certain conditions, extend the Offer on up to four occasions of 5 business DivIntl 33.44 -0.28 -4.6 PIMCO Funds A InstIdx 185.88 -0.07 0.1 days each (or such other duration as Parent and The Fresh Market may agree). The Merger Agreement also provides that the Offeror will, provided that the Merger DivIntlK r 33.38 -0.28 -4.6 TotRetA 10.12 ... 1.1 InstPlus 185.89 -0.07 0.1 Agreement has not been terminated in accordance with its terms, extend the Offer for any period required by any applicable law, interpretation or position of the SEC or its staff or Nasdaq Global Select Market (“NASDAQ”). GroCo 125.89 +0.19 -7.8 PIMCO Funds D InstTStPlus 45.50 ... -0.5 GrowCoK 125.78 +0.19 -7.8 IncomeFd NA ... NA MidCpInst 32.51 -0.03 -0.8 The Offeror is not, however, required to extend the Offer or the Expiration Time beyond the Outside Date. The Outside Date is July 9, 2016, except that if the InvGrBd 11.23 -0.02 2.5 PIMCO Funds Instl MidCpIstPl 160.34 -0.13 -0.8 marketing period for Parent’s debt financing has commenced, but the Shares tendered in the Offer have not been accepted for payment, then the Outside Date will be LowP r 47.51 -0.40 -0.5 IncomeFd NA ... NA SmCapInst 52.04 +0.13 -1.6 automatically extended to the date that is five business days following the then-scheduled end date of the marketing period (which will not be later than August 4, 2016). LowPriStkK r 47.47 -0.41 -0.5 PIMCO Funds P STIGradeInst 10.64 -0.01 1.2 Any extension, termination or amendment of the Offer will be followed as promptly as practicable by public announcement thereof, and such announcement in the MagIn 86.21 +0.08 -3.6 IncomeP NA ... NA TotBdInst 10.84 -0.01 2.5 case of an extension will be made no later than 9:00 A.M., New York City time, on the next business day after the previously scheduled Expiration Time of the Offer. TotBdInst2 10.80 -0.01 2.5 OTC 74.47 +0.05-10.7 Price Funds The Offeror expressly reserves the right (but is not obligated) to increase the Offer Price, to waive any Offer Condition or to make any other changes in the terms TotBdInstPl 10.84 -0.01 2.5 Puritn 19.94 -0.02 -1.9 BlChip 67.53 ... -6.7 and conditions of the Offer; provided that the Minimum Condition and certain other terms and conditions of the Offer described in the Offer to Purchase may be waived SrsInvGrdF 11.23 -0.02 2.4 CapApp 25.33 -0.01 1.1 TotIntBdIdxInst 32.60 -0.03 3.2 or modified by the Offeror only with the prior written consent of The Fresh Market. TotalBond 10.44 -0.03 2.5 EmMktS 29.40 -0.09 3.2 TotIntlInstIdx r 94.62 -0.67 -2.1 In order to tender your Shares in the Offer, you must (a) follow the procedures described in Section 3— “Procedures for Tendering Shares” of the Offer to Purchase EqInc 29.00 -0.01 1.9 TotItlInstPlId r 94.64 -0.67 -2.1 Fidelity Selects or (b) if your Shares are held through a broker, dealer, commercial bank, trust company or other nominee, contact such nominee and request that they effect the Biotech r 163.23 +0.59-30.8 EqIndex 55.00 -0.02 0.1 TotStInst 50.31 +0.01 -0.5 VirtusFunds Cl I transaction for you and tender your Shares. If your Shares are held through a broker, dealer, commercial bank, trust company or other nominee, you must Health r 180.27 -0.05-13.4 Growth 50.15 ... -6.5 contact such broker, dealer, commercial bank, trust company or other nominee to tender your Shares. If you desire to tender Shares, and certificates evidencing Fidelity Spartan HelSci 59.70 +0.07-13.3 EmMktI 9.04 -0.01 0.9 your Shares are not immediately available, or if you cannot comply with the procedures for book-entry transfer described in the Offer to Purchase on a timely basis, or 500IdxInv 71.89 -0.03 0.1 HiYield 6.24 -0.03 2.5 if you cannot deliver all required documents to our Depositary and Paying Agent prior to the expiration of our Offer, you may tender your Shares by following the 500IndInst 71.91 -0.02 0.1 InstlCapG 26.76 -0.02 -7.4 W procedures for guaranteed delivery set forth in Section 3 of the Offer to Purchase. Fidelity Spartan Adv Intl G&I 12.70 -0.09 -2.8 Western Asset For purposes of the Offer, the Offeror will be deemed to have accepted for payment and thereby to have purchased Shares validly tendered and not properly 500IdxAd 71.90 -0.03 0.1 IntlStk 14.95 -0.07 -2.2 CorePlusBdI 11.55 -0.02 1.8 withdrawn if and when the Offeror gives oral or written notice to the Depositary and Paying Agent of its acceptance for payment of those Shares pursuant to the Offer. Payment for Shares accepted for payment pursuant to the Offer will be made by depositing the Offer Price with the Depositary and Paying Agent, which will act as agent for tendering stockholders for the purpose of receiving payments from the Offeror and transmitting such payments to tendering stockholders. Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of the Offer or any delay in making payment for Shares. | WSJ.com/ETFresearch Exchange-Traded Portfolios Shares tendered pursuant to the Offer may be withdrawn at any time on or prior to the Expiration Time, and, if not previously accepted for payment at any time, after May 24, 2016, the date that is 60 days after the date of the commencement of the Offer, pursuant to SEC regulations. For your withdrawal to be effective, a written (or, Largest 100 exchange-traded funds, latest session Closing Chg YTD ETF Symbol Price (%) (%) with respect to Eligible Institutions (as defined in the Offer to Purchase), a facsimile transmission) notice of withdrawal with respect to the Shares must be timely received Thursday, March 24, 2016 by the Depositary and Paying Agent at one of its addresses set forth on the back cover of the Offer to Purchase, and the notice of withdrawal must specify the name of iSharesUSPreferred 38.76 –0.2 PFF 0.16 the person who tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the registered holder of the Shares to be withdrawn, if Closing Chg YTD iShShortTreasuryBd 110.34 0.02 0.1 ETF Symbol Price (%) (%) SHV different from that of the person who tendered such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution, unless those iSh1-3YTreasuryBd SHY 84.80 –0.05 0.5 AlerianMLPETF AMLP 10.47 –1.23–13.1 Shares have been tendered for the account of any Eligible Institution. If Shares have been tendered pursuant to the procedures for book-entry transfer, any notice of iSh7-10YTreasuryBd IEF 109.19 –0.10 3.4 CnsmrDiscSelSector XLY 77.55 0.13 –0.8 withdrawal must specify the name and number of the account at The Depository Trust Company (“DTC”) to be credited with the withdrawn Shares. If certificates iSh20+YTreasuryBd TLT 129.54 0.04 7.4 CnsStapleSelSector XLP 52.32 –0.11 3.6 representing the Shares to be withdrawn have been delivered or otherwise identified to the Depositary and Paying Agent, the name of the registered owner and the serial iShRussellMCGrowth IWP 90.22 –0.20 –1.8 DBGoldDoubleLgETN DGP 24.27 1.17 33.8 numbers shown on such certificates must also be furnished to the Depositary and Paying Agent prior to the physical release of such certificates. If you tender Shares by MktVectorsBiotech BBH 102.09 0.70–19.6 DBGoldDoubleShrt DZZ 6.42 –0.47–27.6 giving instructions to a broker, dealer, commercial bank, trust company or other nominee, you must instruct such broker, dealer, commercial bank, trust company or other MktVectorsGoldMin GDX 19.46 2.26 41.8 DeutscheXMSCIEAFE DBEF 25.47 –0.70 –6.2 nominee to arrange for the withdrawal of your Shares. MktVectorsOilSvcs OIH 26.28 0.23 –0.6 EnSelectSectorSPDR XLE 61.84 0.49 2.5 All questions as to the form and validity (including time of receipt) of a tender or a notice of withdrawal will be determined by the Offeror, in its sole discretion, MktVectorsPharm PPH 57.22 –0.40 –5.5 FinSelSectorSPDR XLF 22.31 –0.62 –6.4 which determination will be final and binding absent a finding to the contrary by a court of competent jurisdiction. No tender or withdrawal of Shares will be deemed to MktVectorsRetail RTH 75.99 0.24 –2.2 GuggenheimSP500EqW RSP 77.39 –0.12 1.0 have been validly made until all defects and irregularities have been cured or waived. None of Parent, the Offeror or any of their respective affiliates or assigns, the MktVectorsSemi SMH 54.11 –0.17 1.6 HealthCareSelSect XLV 67.39 –0.04 –6.4 Depositary and Paying Agent, D.F. King & Co., Inc. (the “Information Agent”), or any other person will be under any duty to give notification of any defects or PwrShrs QQQ QQQ 107.26 0.03 –4.1 IndSelSectorSPDR XLI 55.12 –0.29 4.0 irregularities in any tender of Shares or notice of withdrawal or incur any liability for failure to give such notification. Withdrawals of tenders of Shares may not be PS SP500LoVoltlPrt SPLV 39.76 –0.23 3.1 iShIntermCredBd CIU 109.04 ... 1.6 rescinded, and any Shares properly withdrawn will be deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be retendered SPDRBarclaysHiYdBd JNK 34.15 –0.44 0.7 iSh1-3YCreditBond CSJ 105.18 0.02 0.6 by following one of the procedures for tendering Shares described in the Offer to Purchase at any time prior to the Expiration Time. SchwUS BrdMkt SCHB 48.56 –0.04 –1.0 iSharesTIPSBondETF TIP 113.12 –0.23 3.1 SchwUS LrgCap SCHX 48.21 –0.06 –0.7 The receipt of cash in exchange for Shares pursuant to the Offer and the Merger generally will be taxable for U.S. federal income tax purposes, generally will be iSh3-7YTreasuryBd IEI 124.96 –0.06 1.9 SPDR DJIA Tr 174.94 0.07 0.5 taxable under applicable state and local tax laws, and may be taxable under other tax laws. All Fresh Market stockholders should consult with their tax advisors as iShCoreMSCIEAFEETF IEFA 52.27 –0.59 –3.9 DIA SPDR GldTr 116.33 –0.24 14.7 to the particular tax consequences to them of the Offer and the Merger. iShCoreMSCIEmgMk IEMG 40.57 –0.20 3.0 GLD SPDR S&PMdCpTr 256.91 0.08 1.1 iShCoreS&P500ETF IVV 204.18 –0.06 –0.3 MDY The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 of the General Rules and Regulations under the Exchange Act is contained in the Offer SPDR S&P 500 203.12 –0.04 –0.4 to Purchase and is incorporated herein by reference. iShCoreS&PMdCp IJH 140.91 0.06 1.1 SPY SPDR S&P Div 78.86 0.11 7.2 iShCoreS&PSmCpETF IJR 109.17 0.30 –0.9 SDY Upon the request of the Offeror, The Fresh Market has provided to the Offeror its list of stockholders and security position listings for the purpose of disseminating TechSelectSector 43.62 0.28 1.8 iShCoreUSAggBd AGG 110.11 0.01 1.9 XLK the Offer to holders of Shares. The Offer to Purchase and the related Letter of Transmittal are being mailed to record holders of Shares and will be furnished to brokers, UtilitiesSelSector 48.91 0.27 13.0 iShSelectDividend DVY 80.33 –0.01 6.9 XLU dealers, commercial banks, trust companies and other nominees whose names, or the names of whose nominees, appear on the stockholder list or, if applicable, who are VangdInfoTch 107.30 0.14 –0.9 iSharesGold IAU 11.75 –0.09 14.9 VGT listed as participants in a clearing agency’s security position listing, for subsequent transmittal to beneficial owners of Shares. VangdSmCapValue 99.66 0.23 0.9 iShiBoxx$InvGrCpBd LQD 117.89 –0.04 3.4 VBR VangdHlthCr 122.03 –8.2 The Offer to Purchase, the related Letter of Transmittal and The Fresh Market’s Solicitation/Recommendation Statement on Schedule 14D-9 (which iShiBoxx$HYCpBd HYG 81.35 –0.44 1.0 VHT –0.11 VangdDivApp contains the recommendation of The Fresh Market’s Board of Directors and the reasons therefor) contain important information that should be read carefully iShMBSETF MBB 109.01 –0.07 1.2 VIG 80.20 –0.14 3.1 VanguardFTSEDevMk before any decision is made with respect to the Offer. iShMSCIACWIETF ACWI 55.23 –0.22 –1.1 VEA 35.29 –0.65 –3.9 iShMSCIEAFEMinVol EFAV 65.60 –0.14 1.1 VanguardFTSEEmgMk VWO 33.81 –0.15 3.4 Questions and requests for assistance and copies of the Offer to Purchase, the Letter of Transmittal and all other tender offer materials may be directed to the iSharesMSCIEAFESC SCZ 48.84 –0.16 –2.2 VanguardFTSEEurope VGK 47.55 –0.69 –4.7 Information Agent at its address and telephone number set forth below and will be furnished promptly at the Offeror’s expense. Neither Parent nor the Offeror will pay iSharesMSCIEAFEETF EFA 56.35 –0.67 –4.0 VangdAllWldxUS VEU 42.42 –0.52 –2.3 any fees or commissions to any broker, dealer, commercial bank, trust company or other nominee (other than to the Depositary and Paying Agent and the Information Agent) in connection with the solicitation of tenders of Shares pursuant to the Offer. iShMSCIEmgMarkets EEM 33.36 –0.24 3.6 VangdGrowth VUG 104.72 0.03 –1.6 iShMSCIEurozoneETF EZU 33.84 –0.97 –3.4 VangdHiDivYld VYM 68.42 0.01 2.5 iShMSCIGermanyETF EWG 25.17 –1.02 –3.9 VngdInter-Term BIV 85.44 –0.01 2.9 The Information Agent for the Offer Is: iShMSCIJapanETF EWJ 11.35 –0.61 –6.4 VangIntrCorpBd VCIT 86.31 –0.20 2.6 iShMSCIUSAMinVol USMV 43.29 ... 3.5 VangdLgCap VV 92.82 –0.05 –0.7 iShNasdaqBiotech IBB 255.48 0.48–24.5 VangdMdCap VO 118.79 –0.14 –1.1 D.F. King & Co., Inc. iShNatlAMTFrMuniBd MUB111.07 –0.13 0.3 VangdReit VNQ 80.95 0.04 1.5 iShRussell1000Gwth IWF 98.23 ... –1.3 VanguardS&P500 VOO 186.30 –0.07 –0.3 48 Wall Street, 22nd Floor iShRussell1000ETF IWB 112.62 ... –0.6 VangdShrtTrm BSV 80.22 ... 0.8 New York, New York 10005 iShRussell1000Val IWD 97.84 –0.11 –0.0 VangShrtCorpBd VCSH 79.67 –0.04 0.9 iShRussell2000Gwth IWO 127.79 0.28 –8.2 VangdSmCap VB 108.58 0.16 –1.9 Bankers and Brokers Call: (212) 493-3910 iShRussell2000ETF IWM107.20 0.30 –4.8 VangdTtlBndMkt BND 82.30 –0.12 1.9 Others Call Toll Free: (800) 283-3192 iShRussell2000Val IWN 90.73 0.32 –1.3 VanguardTotIntlBd BNDX 54.46 0.11 3.0 Email: [email protected] iShRussell3000ETF IWV 119.12 ... –1.0 VanguardTtlIntlStk VXUS 44.07 –0.54 –2.3 iShRussellMid-Cap IWR 159.96 –0.03 –0.1 VangdTtlStock VTI 103.32 –0.03 –0.9 iShRussellMCValue IWS 69.67 ... 1.5 VangdTotlWrld VT 56.55 –0.21 –1.9 March 25, 2016 iShS&PMC400Growth IJK 158.59 –0.13 –1.5 VanguardValueETF VTV 81.66 –0.06 0.2 iShS&P500Growth IVW 114.23 0.02 –1.4 WisdomTreeEurope HEDJ 51.68 –0.90 –4.0 iShS&P500ValueETF IVE 89.14 –0.16 0.7 WisdomTreeJapanHdg DXJ 43.41 –0.53–13.3 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com C6 | Friday, March 25, 2016 THE WALL STREET JOURNAL. MARKETS DIGEST

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index Last Year ago Last Year ago Last Year ago 17515.73 s13.14, or 0.08% Trailing P/E ratio * 17.90 16.60 2035.94 t0.77, or 0.04% Trailing P/E ratio * 23.53 20.52 4773.50 s 4.64, or 0.10% Trailing P/E ratio *21.55 23.52 High, low, open and close for each P/E estimate * 16.50 16.30 High, low, open and close for each P/E estimate * 17.55 17.62 High, low, open and close for each P/E estimate * 18.15 18.98 trading day of the past three months. Dividend yield 2.59 2.52 trading day of the past three months. Dividend yield 2.23 1.99 trading day of the past three months. Dividend yield 1.27 1.20 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 Session high 18000 2100 5080 DOWN UP

Session open tt Close 65-day moving average 65-day moving average Close Open 17500 2050 4930

Session low 17000 2000 4780

65-day moving average 16500 1950 4630

16000 1900 4480

15500 1850 4330

Bars measure the point change from session's open 15000 1800 4180 Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar. * 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* 887,313,457 7,461,291 Industrial Average 17517.14 17399.01 17515.73 13.14 0.08 18312.39 15660.18 -0.9 0.5 6.5 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 486,033,713 2,922,732 Transportation Avg 7933.58 7848.57 7926.02 -30.76 -0.39 8904.68 6625.53 -8.7 5.6 8.7 Most-active issues in late trading Decl. volume* 390,284,959 4,341,445 Utility Average 661.25 656.87 660.20 1.37 0.21 663.19 541.97 14.5 14.3 9.9 Volume After Hours Issues traded 3,174 342 Company Symbol (000) Last Net chg % chg High Low Advances 1,570 139 Total Stock Market 20883.32 20727.18 20882.81 1.71 0.01 22287.78 18663.11 -3.1 -1.0 8.7 iShares Gold Trust IAU 23,854.4 11.75 … unch. 12.22 10.75 Declines 1,504 181 Barron's 400 505.17 500.23 505.17 -0.52 -0.10 586.75 446.15 -10.1 -2.2 7.6 Mkt Vectors Gold Miners GDX 9,868.9 19.42 -0.04 -0.21 20.69 19.02 Unchanged 100 22 Nasdaq Stock Market SPDR S&P 500 SPY 8,400.6 203.44 0.32 0.16 204.88 202.53 New highs 58 9 Nasdaq Composite 4773.50 4734.77 4773.50 4.64 0.10 5218.86 4266.84 -1.8 -4.7 13.7 Baxalta BXLT 2,598.9 38.98 -1.02 -2.55 40.20 38.98 New lows 20 1 Closing tick 104 12 Nasdaq 100 4405.99 4374.71 4405.53 2.97 0.07 4719.05 3947.80 2.1 -4.1 16.3 Microsoft MSFT 2,319.1 54.21 … unch. 54.29 53.49 Closing Arms† 0.79 1.05 SeaDrill SDRL 2,305.1 3.23 -0.04 -1.20 3.30 3.23 Standard & Poor's Block trades* 4,974 71 Superior Energy Svcs SPN 2,301.8 12.82 … unch. 12.82 12.69 500 Index 2036.04 2022.49 2035.94 -0.77 -0.04 2130.82 1829.08 -1.0 -0.4 9.4 Nasdaq NYSE Arca iShares Russell 2000 ETF IWM 2,228.4 107.22 0.02 0.02 109.80 106.82 MidCap 400 1413.86 1399.84 1413.86 1.74 0.12 1549.44 1238.82 -5.9 1.1 7.5 Total volume* 1,574,702,168 291,925,164 SmallCap 600 666.28 658.20 666.28 2.32 0.35 742.13 588.26 -6.3 -0.8 8.0 Percentage gainers… Adv. volume* 796,749,439 106,116,497 Decl. volume* 765,347,439 181,681,137 SunRun RUN 7.1 6.75 0.51 8.17 6.77 6.24 Other Indexes Issues traded 2,879 1,311 1079.54 0.36 -12.4 4.5 DepoMed DEPO 10.9 13.88 0.57 4.28 14.24 12.91 Russell 2000 1079.54 1065.62 3.84 1295.80 953.72 -5.0 Advances 1,497 434 Siliconware Precision ADR SPIL 2.82 NYSE Composite 10087.05 10003.98 10086.60 -13.08 -0.13 11239.66 9029.88 -7.2 -0.6 3.6 50.1 8.40 0.23 8.40 7.58 Declines 1,275 845 2.77 Value Line 443.46 437.93 443.46 1.04 0.24 522.42 383.82 -12.4 -0.5 3.0 First Ind Realty Trust FR 25.5 22.62 0.61 22.78 21.96 Unchanged 107 32 Acorda Therapeutics ACOR 2.75 NYSE Arca Biotech 2916.17 2792.35 2874.65 21.31 0.75 4431.87 2642.53 -26.8 -24.6 17.1 58.8 26.50 0.71 27.50 25.52 New highs 29 3 New lows 54 2 NYSE Arca Pharma 493.06 489.67 492.39 -1.69 -0.34 605.94 477.25 -13.5 -9.1 6.5 ...And losers Closing tick 84 33 KBW Bank 64.80 63.84 64.80 -0.43 -0.66 80.41 56.51 -9.6 -11.3 4.6 -18.71 TransEnterix TRXC 91.3 3.65 -0.84 4.50 3.60 Closing Arms† 1.13 1.07 § 67.48 2.08 -1.3 -21.0 PHLX Gold/Silver 67.79 65.45 1.38 75.36 38.84 49.0 Qiagen NV QGEN 5.2 18.99 -2.74 -12.61 22.00 18.99 Block trades* 7,342 1,411 § 157.82 0.59 -17.3 -13.0 -5.68 PHLX Oil Service 157.98 152.70 0.93 224.32 128.61 0.1 GameStop Cl A GME 566.9 28.55 -1.72 31.50 27.75 * Primary market NYSE, NYSE MKT NYSE Arca only. § PHLX Semiconductor 666.16 658.58 666.14 -0.33 -0.05 746.08 559.18 -1.3 0.4 15.7 ArcelorMittal ADR MT 268.6 4.03 -0.23 -5.31 4.56 4.03 †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An CBOE Volatility 16.44 14.71 14.74 -0.20 -1.34 40.74 11.95 -6.7 -19.1 2.8 WMC -4.76 Western Asset Mortgage 35.6 9.60 -0.48 10.66 9.48 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 2276.46 –20.25 –0.88 –2.6 Code Rebel CDRB 3.28 0.65 24.71 44.21 1.51 ... Portola Pharmaceuticals PTLA 20.27 -8.35 -29.18 57.96 20.00 -46.1 The Global Dow Euro 1920.11 –15.09 –0.78 –5.2 TiVo TIVO 9.45 1.79 23.37 11.40 7.29 -9.9 Sigma Designs SIGM 6.31 -1.51 -19.31 12.83 5.41 -19.9 DJ Global Index 302.02 –1.74 –0.57 –1.9 American Realty Investors ARL 5.09 0.82 19.20 7.49 3.89 -4.5 Highpower International HPJ 1.95 -0.44 -18.30 5.00 1.65 -50.1 17.60 ... -17.83 36.8 World DJ Global ex U.S. 203.66 –2.39 –1.16 –3.1 SmartFinancial SMBK 17.84 2.67 18.48 14.75 China Natural Resources CHNR 2.12 -0.46 2.86 0.60 ADMA Biologics ADMA 7.29 1.08 17.39 10.28 4.15 -21.0 Qumu Corp. QUMU 4.21 -0.79 -15.80 14.99 1.58 -67.7 Americas DJ Americas 486.90 –0.21 –0.04 –0.1 Vericel VCEL 6.08 0.82 15.59 6.14 1.69 56.3 Tandem Diabetes Care TNDM 7.90 -1.47 -15.69 14.19 6.59 -37.4 Brazil Sao Paulo Bovespa 49657.39 –32.66 –0.07 14.6 Skyline Corp SKY 7.25 0.92 14.53 8.12 2.17 101.7 Spark Energy SPKE 20.78 -3.63 -14.87 27.62 11.85 43.0 Canada S&P/TSX Comp 13358.11 –21.37 –0.16 2.7 Mercury Systems MRCY 18.81 2.32 14.07 19.99 13.37 18.2 Celator Pharmaceuticals CPXX 10.63 -1.85 -14.82 12.73 1.12 344.8 Mexico IPC All-Share 45647.57 … Closed 6.2 Tecogen TGEN 5.87 0.72 13.98 6.50 2.46 10.3 Concordia Healthcare CXRX 26.50 -3.99 -13.09 89.10 19.02 -61.3 Chile Santiago IPSA 3086.06 –11.34 –0.37 4.8 Dipexium Pharmaceuticals DPRX 7.74 0.90 13.16 17.10 6.04 -44.2 Antero Midstream Partners AM 21.76 -3.21 -12.86 29.76 16.47 -10.7 Europe Stoxx Europe 600 335.10 –4.97 –1.46 –8.4 Accelerate Diagnostics AXDX 13.52 1.50 12.48 31.29 10.29 -37.1 DragonWave DRWI 2.19 -0.29 -11.69 19.75 1.40 -84.8 Euro zone Euro Stoxx 319.05 –5.43 –1.67 –7.6 NQ Mobile ADR NQ 4.88 0.53 12.18 6.54 2.72 26.8 Sportsman's Warehouse SPWH 12.23 -1.56 -11.31 14.91 7.73 52.9 Belgium Bel-20 3368.90 –59.63 –1.74 –9.0 Cadiz CDZI 4.53 0.49 12.13 10.80 2.71 -54.7 ProShares Ultra Oil Gas UOP 18.72 -2.30 -10.94 61.62 11.30 ... France CAC 40 4329.68 –2.13 –6.6 –94.30 CareDx CDNA 5.27 0.57 12.13 8.00 3.70 -5.4 Vitae Pharmaceuticals VTAE 6.00 -0.73 -10.85 18.71 4.08 -45.8 Germany DAX 9851.35 –1.71 –171.58 –8.3 CTI Industries CTIB 6.15 0.65 11.81 6.45 3.15 49.3 United Therapeutics UTHR 108.87 -12.73 -10.47 190.29 107.51 -35.0 Israel Tel Aviv 1485.90 … Closed –2.8 Italy FTSE MIB 18165.84 –297.04 –1.61 –15.2 Netherlands AEX 437.49 –5.87 –1.32 –1.0 Most Active Stocks Volume Movers Ranked by change from 65-day average* Spain IBEX 35 8789.80 –137.30 –1.54 –7.9 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low Sweden SX All Share 475.89 –5.56 –1.16 –5.8 BAC 93,977 0.44 7335 -9.38 Switzerland Swiss Market 7775.58 –118.78 –1.50 –11.8 Bank Of America -30.1 13.68 18.48 10.99 Steel Excel SXCL 577 9.68 24.93 9.63 iPath SP 500 VIX Sht Tm VXX 80,198 3.3 19.30 -0.57 31.48 15.48 Lattice US Equity Strat ROUS 165 1967 23.37 -0.55 25.52 20.69 U.K. FTSE 100 6106.48 –92.63 –1.49 –2.2 SPDR S&P 500 SPY 75,735 -48.1 203.12 -0.04 213.78 181.02 Portola Pharmaceuticals PTLA 14,676 1815 20.27 -29.18 57.96 20.00 1343.49 –0.87 Asia-Pacific DJ Asia-Pacific TSM –11.81 –3.3 Great Basin Scientific GBSN 73,351 589.8 0.20 -30.00 366.00 0.11 Sun Communities SUI 5,547 1758 68.15 1.72 72.92 60.29 5084.20 –1.13 Australia S&P/ASX 200 –58.10 –4.0 iShares MSCI Emg Markets EEM 59,433 -13.1 33.36 -0.24 44.19 27.61 WisdomTree LargeCap ValueEZY 421 1586 62.11 -0.20 71.94 54.83 China Shanghai Composite 2960.97 –48.99 –1.63 –16.3 Mkt Vectors Gold Miners GDX 54,838 -30.4 19.46 2.26 21.42 12.40 EGShares EM Quality Div HILO 78 1440 12.50 -0.68 15.59 10.19 Hong Kong Hang Seng 20345.61 –269.62 –1.31 –7.2 Freeport-McMoRan FCX 52,500 -12.0 10.11 3.69 23.97 3.52 TiVo TIVO 13,819 1361 9.45 23.37 11.40 7.29 India S&P BSE Sensex 25337.56 … Closed –3.0 DXN DLY GLDMNR 3x BR DUST 42,444 35.3 3.59 -6.51 40.00 2.79 Antero Midstream Partners AM 6,338 1195 21.76 -12.86 29.76 16.47 Japan Nikkei Stock Avg 16892.33 –108.65 –0.64 –11.3 Finl Select Sector SPDR XLF 39,209 -39.6 22.31 -0.62 25.62 18.52 PowerShares S&P 500 xRateXRLV 190 1170 26.01 -0.27 26.25 22.38 Singapore Straits Times 2847.39 –1.20 –1.2 –34.59 SunEdison SUNE 38,432 -14.1 1.21 -4.72 33.45 1.15 FT Small Cap Value FYT 217 1134 27.70 0.72 34.91 19.22 South Korea Kospi 1985.97 –0.46 1.3 –9.15 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least Taiwan Weighted 8743.38 –22.71 –0.26 4.9 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 Five-year ARM, Rate US$ vs, US$ vs, A consumer rate against its 8% Thurs YTD chg Thurs YTD chg

5.00% Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%) benchmark over the past year WSJ Dollars index Bankrate.com avg†: 3.39% 6 –1.9 4.00 4 Americas Thailand baht .02830 35.330 5-year adjustable- Sterling Home Mortgage 2.38% 1.2 2 12.0 Vietnam dong .00004459 22425 t rate mortgage 4.00% Palatine, IL 888-234-2440 Argentina peso .0690 14.4990 (ARM) 3.00 0 Brazil real .2718 3.6795 –7.1 Europe 2.50% Northwest Federal Credit Union –2 Canada dollar .7548 1.3249 –4.3 Czech Rep. koruna .04128 24.224 –2.7 3.00 2.00 s Herndon, VA 866-709-8901 –4 Chile peso .001469 680.60 –4.0 Denmark krone .1499 6.6717 –2.9

5-year Treasury One year ago t t Euro Colombia –3.2 Euro area –2.8 note yield 2.00 The Mortgage Marketplace Inc. 2.50% 1.00 –6 s peso .0003254 3073.00 euro 1.1174 .8950 Ecuador US dollar 11unch Hungary forint .003562 280.76 –3.3 t Glenview, IL 847-737-4747 Thursday –8 Yen Mexico peso .0568 17.6110 2.4 Iceland krona .007949 125.80 –3.4 1.00 0.00 –10 EmpireAmerica 2.63% Peru new sol .2963 3.375 –1.2 Norway krone .1178 8.4870 –4.0 1 3 6 1 2 3 5 710 30 Woodland Hills, CA 866-411-3621 2015 2016 Uruguay peso .03117 32.0800 7.3 Poland zloty .2619 3.8189 –2.7 0.00 month(s) years unch –4.6 The Mortgage Concierge 2.63% Venezuela b. fuerte .158595 6.3054 Russia ruble .01457 68.627 A M J J A S O N D J F M maturity Sweden krona .1205 8.2961 –1.8 Columbus, OH Asia-Pacific 2015 2016 866-654-5363 Switzerland franc 1.0249 .9757 –2.6 Australian dollar .7528 1.3284 –3.2 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Turkey lira .3481 2.8724 –1.6 China yuan .1535 6.5158 0.3 Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0381 26.2290 9.3 l Hong Kong dollar .1289 7.7586 0.1 Interest rate Last ( )Week ago Low 0 2 4 6 8 High (pct pts) UK pound 1.4154 .7065 4.1 India rupee .01494 66.916 1.1 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 .0000754 13266 –4.1 Middle East/Africa Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008857 112.90 –6.1 Bahrain dinar 2.6539 .3768 –0.1 Bond total return index Close Last Week ago High Low 52-wk 3-yr 2.1 13.5 Libor, 3-month 0.63 0.64 0.27 l 0.64 0.34 Kazakhstan tenge .002892 345.78 Egypt pound .1126 8.8840 Macau pataca .1253 7.9836 –0.3 Israel shekel .2609 3.8331 –1.5 Money market, annual yield 0.26 0.26 0.22 l 0.42 -0.24 Treasury, Ryan ALM 1451.873 1.594 1.595 1.957 1.351 2.156 2.607 Malaysia ringgit .2488 4.0201 –6.6 Kuwait dinar 3.3107 .3021 –0.5 1.29 l 0.07 1.902 –2.423 Five-year CD, annual yield 1.28 1.28 1.53 10-yr Treasury, Ryan ALM 1750.574 1.903 2.480 1.642 2.769 New Zealand dollar .6702 1.4921 2.0 Oman sul rial 2.5973 .3850 unch 30-year mortgage, fixed† 3.70 3.75 3.57 l 4.22 -0.19 DJ Corporate 355.186 3.036 3.088 3.462 2.641 2.250 3.361 Pakistan rupee .00955 104.700 –0.2 Qatar rial .2746 3.642 unch 2.92 l -0.12 Philippines –1.0 Saudi Arabia –0.1 15-year mortgage, fixed† 2.96 2.85 3.42 Aggregate, Barclays Capital 1871.570 2.290 2.300 2.630 2.000 1.204 2.341 peso .0216 46.385 riyal .2667 3.7501 l Singapore dollar .7301 1.3696 –3.4 South Africa rand .0647 15.4577 –0.1 Jumbo mortgages, $417,000-plus† 4.23 4.27 4.00 4.97 0.04 6.863 –5.051 High Yield 100, Merrill Lynch 2417.661 6.727 8.696 5.207 1.161 South Korea won .0008557 1168.59 –0.6 Five-year adj mortgage (ARM)† 3.39 3.60 3.14 l 3.86 0.46 Fixed-Rate MBS, Barclays 1936.430 2.460 2.430 2.900 2.260 1.993 2.597 Sri Lanka rupee .0068009 147.04 1.9 Close Net Chg % Chg YTD % Chg l 0.58 New-car loan, 48-month 3.22 3.18 2.71 3.38 –1.1 –2.53 Muni Master, Merrill 504.826 1.644 1.656 2.099 1.440 3.210 3.073 Taiwan dollar .03073 32.540 WSJ Dollar Index 87.89 0.12 0.14 HELOC, $30,000 4.68 4.67 4.24 l 5.01 -0.19 n.a. n.a. 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 n.a. 6.246 7.128 5.679 n.a. 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 Thursday 52-Week YTD Pricing trends on someClose raw materials, Net chg % Chg or commodities High Low % Chg % chg DJ Commodity 476.05 -1.56 -0.33 584.70 420.23 -13.98 4.90 ONLINE Reuters-Jefferies CRB 172.18 -1.06 -0.61 231.77 155.01 -21.55 -2.32 39.46 -0.83 -23.27 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 -0.33 61.43 26.21 6.53 1.806 0.67 -32.41 .COM ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at Natural gas, $/MMBtu 0.012 3.02 1.64 -22.72 1221.40 -0.19 1.35 WSJMarkets.com Gold, $ per troy oz. -2.30 1272.00 1050.80 15.19 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, March 25, 2016 | C7 BIGGEST 1,000 STOCKS WSJ.com/stocks

How to Read the Stock Tables Net Net Net Net Net Net The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg securities. Prices are composite quotations that include primary market trades as well as trades 104.80 -0.07 17.26 -0.14 82.04 0.54 20.15 -0.13 167.98 -0.59 38.92 -1.60 reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Ingredion INGR OrangeADR ORAN Target TGT AppliedMaterials AMAT HenrySchein HSIC PayPalHoldings PYPL Exchange, ISE and BATS. ICE ICE 234.35 -2.20 OrbitalATK OA 84.05 1.28 TaroPharm TARO 141.75 1.54 ArchCapitalGroup ACGL 69.32 -1.19 Hologic HOLX 34.35 0.35 People'sUnitedFin PBCT 15.86 -0.10 The list comprises the 1,000 largest companies based on market capitalization. InterContinentlADR IHG 39.52 0.12 OrixADR IX 70.89 0.15 TataMotorsADR TTM 27.59 0.07 AthenaHealth ATHN 133.58 0.84 JBHunt JBHT 86.01 -0.02 PilgrimPride PPC 24.09 -0.18 Underlined quotations are those stocks with large changes in volume compared with the issue’s IBM IBM 147.95 2.55 OwensCorning OC 47.00 0.30 TeckResourcesB TCK 7.36 0.07 AtlassianClA TEAM 23.82 -0.81 HuntingtonBcshs HBAN 9.59 -0.04 PricelineGroup PCLN 1301.19 -4.92 average trading volume. IntFlavor IFF 113.24 -0.39 PG&E PCG 58.85 -0.11 TecoEnergy TE 27.51 0.02 Autodesk ADSK 57.37 0.08 IdexxLab IDXX 75.59 0.13 Qiagen QGEN 21.73 -0.02 Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous InternationalPaper IP 40.79 0.08 PNC FnlSvcs PNC 84.80 -0.55 TelecomItaliaADR TI/A 8.75 -0.40 ADP ADP 88.75 0.22 IPG Photonics IPGP 94.52 1.85 Qorvo QRVO 49.24 -0.28 closing price was $2 or higher. Interpublic IPG 21.52 -0.12 POSCOADR PKX 45.15 0.03 TelecomItaliaADR TI 10.74 -0.37 B/EAerospace BEAV 46.91 -0.05 IcahnEnterprises IEP 64.49 0.98 Qualcomm QCOM 50.86 -0.13 Footnotes: listing standards vj-In bankruptcy or IronMountain IRM 32.77 -0.08 PPG Ind PPG 108.95 -0.19 s Teleflex TFX 154.62 -0.12 BaiduADR BIDU 184.86 1.02 Illumina ILMN 155.34 2.80 QunarCaymanIslADR QUNR 36.79 -0.07 s-New 52-week high. lf-Late filing receivership or being 4.17 -0.03 37.19 0.13 11.97 0.03 49.40 -0.06 Incyte INCY 69.76 2.33 90.10 1.60 t-New 52-week low. -Temporary exemption from reorganized under the IsraelChemicals ICL PPL PPL TelefonicaBrasADR VIV BedBath BBBY RandgoldRscsADR GOLD q ItauUnibancoADR ITUB 8.35 -0.09 94.29 6.66 10.87 -0.08 254.69 -0.55 Intel INTC 31.88 -0.12 REGN 370.80 5.42 dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities PVH Corp. PVH TelefonicaADR TEF Biogen BIIB RegenPharm recent four quarters. -NYSE bankruptcy assumed by such companies. JPMorganChase JPM 59.48 -0.46 PackCpAm PKG 58.71 0.32 TelekmIndonesiaADR TLK 51.16 0.58 BioMarinPharm BMRN 80.87 0.26 InteractiveBrokers IBKR 38.42 0.28 RossStores ROST 57.41 -0.77 t 101.89 0.19 FD-First day of trading. v-Trading halted on primary JacobsEngineering JEC 43.27 -0.39 PaloAltoNetworks PANW 155.73 0.74 TenarisADR TS 23.98 0.22 BlackBerry BBRY 7.59 -0.10 Intuit INTU RyanairHoldingsADR RYAAY 83.33 -0.42 h-Does not meet continued market. JamesHardieADR JHX 13.33 0.14 ParkerHannifin PH 110.95 0.33 Tesoro TSO 92.49 1.87 BlueBuffaloPetProd BUFF 24.91 0.23 IntuitiveSurgical ISRG 583.31 -3.02 SBACommunications SBAC 97.91 0.96 Jarden JAH 57.65 0.02 PearsonADR PSO 12.54 -0.09 TesoroLogistics TLLP 43.34 0.12 Broadcom AVGO 153.00 0.01 IonisPharma IONS 41.62 1.82 SEIInvestments SEIC 41.24 -0.21 Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and JohnsJohns JNJ 108.31 -0.19 PembinaPipeline PBA 25.48 ... TevaPharmADR TEVA 54.29 0.24 CA CA 30.73 0.13 JD.comADR JD 26.36 -0.38 SS&CTechs SSNC 60.97 -0.32 changes in the closing prices from 4 p.m. the previous day. JohnsonControls JCI 38.32 0.23 Pentair PNR 52.65 -0.29 Textron TXT 36.16 -0.43 CBOE Holdings CBOE 64.72 -0.73 JackHenry JKHY 82.99 0.02 SVBFinancialGroup SIVB 99.77 -0.08 Thursday, March 24, 2016 JonesLangLaSalle JLL 115.83 -0.71 PepsiCo PEP 100.68 -0.13 ThermoFisherSci TMO 139.02 0.20 CDKGlobal CDK 45.55 -0.01 JazzPharma JAZZ 118.59 -2.52 Sabre SABR 27.52 -0.02 Net Net 20.24 -0.33 Stock Sym Close Chg Stock Sym Close Chg JoyGlobal JOY 15.62 0.33 PerkinElmer PKI 48.42 -0.23 ThomsonReuters TRI 39.42 -0.04 CDW CDW 40.61 -0.06 JetBlue JBLU SanDisk SNDK 75.66 -0.75 Net 70.80 -0.20 JuniperNetworks JNPR 25.36 -0.28 Perrigo PRGO 130.31 0.08 3M MMM 164.46 0.19 CH Robinson CHRW 73.74 0.26 KLA Tencor KLAC ScrippsNetworksA SNI 64.01 0.53 Stock Sym Close Chg 12.62 -0.66 64.56 1.51 76.46 -0.35 BraskemADR BAK EQT EQT KARAuctionServices KAR 37.23 0.40 PetroChinaADR PTR 66.14 -0.37 Tiffany TIF 70.93 -1.05 CMEGroupClA CME 95.17 -1.19 KraftHeinz KHC SeagateTechnology STX 33.23 -1.57 62.52 0.18 71.05 -0.33 30.12 -0.09 BristolMyers BMY EQTMidstreamPtrs EQM KBFinancialGrpADR KB 27.44 -0.28 PetroleoBrasilADR PBR 5.40 0.04 TimeWarnerCable TWC 202.70 -1.75 CSX CSX 26.17 0.31 LKQ LKQ SeattleGenetics SGEN 34.68 0.09 NYSE 24.28 0.02 72.84 0.21 78.88 -0.48 BrixmorPropertyGrp BRX EastmanChemical EMN KKR KKR 13.90 -0.30 PetroleoBrasilADRA PBR/A 4.21 0.02 TimeWarner TWX 70.01 -0.68 CadenceDesign CDNS 23.00 0.12 LamResearch LRCX ShireADR SHPG 164.80 -0.55 56.97 -0.34 62.37 -0.11 59.84 0.31 ABBADR ABB 18.93 -0.16 BdridgeFnlSol BR EatonCorp.PLC ETN KTADR KT 13.22 0.17 Pfizer PFE 30.08 -0.11 Toll Bros TOL 28.53 ... Celgene CELG 100.54 0.62 LamarAdvertisingA LAMR SignatureBank SBNY 138.23 0.36 33.69 -0.35 110.53 0.53 56.89 -0.29 ADTCorp. ADT 41.10 0.15 BrookfieldMgt BAM Ecolab ECL KSCitySo KSU 84.94 -0.41 PhilipMorrisIntl PM 97.57 0.50 Torchmark TMK 54.13 -0.57 Cerner CERN 51.46 -1.20 LibertyBroadbandA LBRDA SiliconwareADR SPIL 8.17 0.80 39.90 0.16 8.18 -0.24 56.59 -0.20 AECOM ACM 30.59 0.03 BrookfieldInfr BIP EcopetrolADR EC Kellogg K 75.44 0.40 PhilippineLgDisADR PHI 41.79 0.17 Toro TTC 86.20 -0.14 CharterComms CHTR 198.34 -3.98 LibertyBroadbandC LBRDK SiriusXMHoldings SIRI 3.87 0.01 35.22 0.17 79.63 -1.35 36.82 -0.03 AES AES 11.57 0.27 Brown&Brown BRO EdgewellPersonal EPC KeyCp KEY 11.19 -0.07 Phillips66 PSX 88.06 -0.06 TorontoDominionBk TD 41.77 -0.24 CheckPointSoftware CHKP 82.83 -0.36 LibertyGlobalClA LBTYA SkyworksSolutions SWKS 76.20 -0.10 104.23 0.06 s 71.34 -0.25 35.91 -0.22 Aflac AFL 62.70 -0.70 BrownFormanClA BF/A EdisonInt EIX KeysightTechs KEYS 27.00 ... PiedmontNaturalGas PNY 59.55 0.04 TotalADR TOT 45.28 -0.25 CincinnatiFin CINF 64.74 -0.35 LibertyGlobalClC LBTYK Splunk SPLK 47.77 0.64 64.80 0.27 96.50 -0.12 87.34 1.45 35.22 -0.03 AGLResources GAS BrownFormanClB BF/B EdwardsLife EW KilroyRealty KRC 58.76 -0.58 PinnacleFoods PF 44.48 0.91 TotalSystemSvcs TSS 45.98 -0.22 Cintas CTAS 87.52 1.24 LibertyGlbLiLACAWi LILA Staples SPLS 10.76 0.71 38.88 0.34 64.99 -0.27 25.56 0.23 133.55 -0.43 37.75 -0.27 AT&T T BuckeyePartners BPL Embraer ADR ERJ KimberlyClark KMB s PinnacleWestCap PNW 73.49 0.20 ToyotaMotorADR TM 106.32 -1.78 CiscoSystems CSCO 27.96 0.13 LibertyGlbLiLACClC LILAK Starbucks SBUX 58.36 -0.47 40.75 -0.03 55.85 1.61 54.39 -0.21 27.80 0.01 24.74 0.33 AbbottLabs ABT Bunge BG EmersonElectric EMR KimcoRealty KIM PioneerNaturalRscs PXD 139.19 2.42 TransCanada TRP 37.79 0.21 CitrixSystems CTXS 76.68 0.03 LibertyInteractQVC QVCA SteelDynamics STLD 22.42 0.51 56.12 -0.24 28.04 -0.46 40.95 0.11 18.09 0.34 LVNTB 38.11 1.00 AbbVie ABBV CBRE Group CBG EmpresaNacADR EOC KinderMorgan KMI PlainsAllAmPipe PAA 21.77 -1.34 TransdigmGrp TDG 219.68 -1.27 CognizantTechSolns CTSH 60.32 1.26 LibertyVenturesB Stericycle SRCL 124.11 0.30 s 59.18 0.54 17.70 0.19 3.02 0.08 LVNTA 38.49 0.13 AccentureClA ACN 114.30 6.64 CBSClA CBS/A EnbridgePtnr EEP KinrossGold KGC PolarisIndustries PII 97.91 1.69 TransUnion TRU 26.54 -0.11 Comcast A CMCSA 60.01 0.76 LibertyVenturesA Symantec SYMC 18.71 0.07 214.91 -2.89 54.06 0.56 37.46 0.18 45.93 -0.78 LibertyMediaA LMCA 37.92 0.04 AcuityBrands AYI CBSClB CBS Enbridge ENB Kohl's KSS PotashCp POT 17.08 -0.28 TravelersCos TRV 115.39 -0.50 CommScopeHldg COMM 26.52 0.07 Synopsys SNPS 47.87 0.30 161.82 0.73 31.94 -1.03 5.94 0.14 27.54 -0.10 LibertyMediaC LMCK 37.04 -0.01 AdvanceAuto AAP CFIndustries CF Encana ECA KoninklijkePhilADR PHG Praxair PX 111.74 -1.06 TreeHouseFoods THS 84.03 -0.12 Copart CPRT 40.67 -0.01 TDAmeritrade AMTD 31.18 -0.09 5.76 0.03 46.05 0.05 7.00 -0.15 25.44 0.30 LinearTechnology LLTC 44.26 0.14 AdvSemiEnggADR ASX CGI Gp A GIB EngyTrnsfrEqty ETE KoreaElcPwrADR KEP PrincipalFinancial PFG 38.90 -0.86 TurkcellIletismADR TKC 10.37 -0.07 CoStarGroup CSGP 183.22 0.02 TFSFinancial TFSL 17.32 0.03 5.53 -0.11 33.46 0.23 28.90 -0.13 37.65 0.06 LinnEnergy LINE 0.47 -0.04 AegonADR AEG CIT Grp CIT EnergyTransfer ETP Kroger KR Procter&Gamble PG 82.89 0.07 TurquoiseHillRscs TRQ 2.62 0.09 CostcoWholesale COST 151.43 -2.08 T-MobileUS TMUS 37.00 -0.07 37.51 -0.56 41.68 0.09 3.72 0.16 43.88 -0.30 lululemonathletica LULU 60.89 0.82 AerCapHoldings AER CMSEnergy CMS Enerplus ERF KyoceraADR KYO ProgressiveCorp PGR 34.81 -0.36 Twitter TWTR 15.91 -0.10 Ctrip.comIntlADR CTRP 44.16 -0.21 TRowePrice TROW 72.51 -0.59 112.41 0.66 31.23 -0.47 13.34 0.02 85.79 0.49 MarketAxess MKTX 120.20 -0.95 Aetna AET CNAFinancial CNA EnersisAmericasADR ENI LBrands LB Prologis PLD 42.32 0.14 TycoInternational TYC 36.01 0.29 DISHNetworkClA DISH 47.91 0.09 TeslaMotors TSLA 227.75 5.17 157.43 -1.55 115.79 1.63 11.36 -0.03 11.23 -0.09 s Markit MRKT 34.31 0.73 AffiliatedManagers AMG CNOOCADR CEO EnLinkMidstream ENLK LGDisplayADR LPL PrudentialFin PRU 70.76 -2.07 TysonFoodsClA TSN 66.89 -0.55 DentsplySirona XRAY 59.62 -0.93 TexasInstruments TXN 56.70 0.10 39.43 -0.04 CPL 10.55 0.35 ETR 78.84 0.70 118.42 -1.16 MarriottInt A MAR 68.64 -0.96 AgilentTechs A CPFLEnergiaADR Entergy L-3Communications LLL PrudentialADR PUK 36.36 -0.39 UBSGroup UBS 16.24 -0.11 Dexcom DXCM 59.96 -1.19 TractorSupply TSCO 88.70 -0.36 36.12 0.67 CRHADR CRH 27.66 0.38 EntPdtsPtnr EPD 24.55 0.25 114.02 0.10 MarvellTch MRVL 10.24 0.01 AgnicoEagleMines AEM LabCpAm LH PublicServiceEnt PEG 46.04 -0.17 UDR UDR 37.05 -0.14 DiamondbackEnergy FANG 77.43 0.73 TrimbleNavigation TRMB 24.53 0.13 89.55 -1.31 CVSHealth CVS 101.43 0.69 Equifax EFX 111.23 -0.31 52.47 0.09 39.72 0.15 Mattel MAT 32.35 -0.12 Agrium AGU LasVegasSands LVS PublicStorage PSA 266.68 1.48 UGI UGI DiscoveryCommsA DISCA 27.99 0.18 TripAdvisor TRIP 62.23 0.49 141.76 -2.17 Cablevision CVC 32.96 -0.02 EquityLife ELS 70.51 0.29 38.18 -0.37 18.81 -0.07 MaximIntProducts MXIM 35.62 0.28 AirProducts&Chems APD Lazard LAZ PulteGroup PHM 17.91 -0.07 UltraparPartADR UGP DiscoveryCommsC DISCK 26.53 0.09 21stCenturyFoxClA FOXA 27.75 -0.04 141.86 0.17 CabotO&G COG 21.97 0.50 EqResdntl EQR 72.49 -0.05 110.49 -0.28 82.16 -0.72 Medivation MDVN 42.57 3.18 Airgas ARG LearCorp LEA Qihoo360Technology QIHU 75.24 0.24 UnderArmour A UA DollarTree DLTR 78.52 -0.44 21stCenturyFoxClB FOX 28.02 0.03 80.59 -0.53 Calpine CPN 14.18 -0.06 EssexProp ESS 226.21 -2.30 47.19 0.14 44.19 -0.14 MelcoCrownEntADR MPEL 16.59 0.06 AlaskaAirGroup ALK Leggett&Platt LEG QuestDiag DGX 69.79 -0.36 UnileverADR UN DunkinBrands DNKN 45.32 -0.21 UltaSalon ULTA 191.76 0.19 61.92 0.53 CamdenPropertyTr CPT 81.55 -0.47 EsteeLaudr A EL 93.27 -0.11 46.35 0.15 44.63 0.03 MercadoLibre MELI 112.89 0.48 Albemarle ALB LennarClA LEN QuintilesTransnat Q 64.23 -0.31 UnileverADR UL E Trade ETFC 24.66 -0.14 UltimateSoftware ULTI 179.31 3.88 9.57 0.25 Cameco CCJ 12.73 0.05 EvrstReGrp RE 191.36 -1.97 36.85 0.27 80.92 -0.60 MichaelsCos. MIK 26.54 0.23 t Alcoa AA LennarClB LEN/B RELXADR RENX 17.19 -0.07 UnionPacific UNP EastWestBancorp EWBC 32.49 -0.07 UnitedTherapeutics UTHR 108.87-12.73 88.52 0.02 CameronIntl CAM 66.00 -0.22 s EversourceEnergy ES 57.83 -0.10 LII 132.90 0.94 57.84 -1.90 MicrochipTech MCHP 48.12 0.16 AlexREEq ARE LennoxIntl RELXADR RELX 18.42 -0.13 UnitedContlHldgs UAL eBay EBAY 24.33 0.16 VCA WOOF 55.75 -0.62 75.86 -0.70 CampbellSoup CPB 63.17 -0.26 Exelon EXC 35.31 0.59 LeucadiaNational LUK 16.03 0.03 2.11 0.02 MicronTechnology MU 10.50 -0.15 AlibabaGroupADR BABA RPM RPM 46.23 -0.14 UnitedMicroADR UMC ElectroArts EA 64.24 -0.81 VeriSign VRSN 89.25 0.36 Y 489.15 -1.01 CIBC CM 72.36 -0.68 ExtraSpaceStorage EXR 90.08 0.71 Level3Comm LVLT 51.59 0.30 105.43 0.55 Microsoft MSFT 54.21 0.24 Alleghany RalphLaurenA RL 95.55 -0.34 UtdParcel B UPS EndoInternational ENDP 29.63 -0.30 VeriskAnalytics VRSK 77.61 0.09 Allegion ALLE 63.14 -0.22 CanNtlRlwy CNI 60.75 0.43 ExxonMobil XOM 83.98 0.23 LibertyPropertyTr LPT 32.29 -0.04 61.99 0.39 Middleby MIDD 103.13 0.37 80.58 0.43 RangeResources RRC 30.72 -0.46 UnitedRentals URI s Equinix EQIX 320.75 1.39 VertxPharm VRTX Allergan AGN 279.32 -1.99 CndNatRes CNQ 26.58 0.25 FMC FMC 40.55 -0.84 EliLilly LLY 71.12 -0.05 40.78 -0.41 MondelezIntlClA MDLZ 39.51 -0.43 44.05 -0.12 RayJamFnl RJF 46.90 -0.47 US Bcp USB EricssonADR ERIC 9.54 -0.09 Viacom A VIA AllianceData ADS 211.77 1.97 CanPacRlwy CP 129.17 -0.02 FMCTechnologies FTI 26.98 0.11 LincolnNational LNC 39.27 -1.05 15.78 0.94 MonsterBeverage MNST 131.25 -1.58 39.68 -0.02 Raytheon RTN 122.95 -0.91 US Steel X Expedia EXPE 107.69 -1.30 45.88 0.47 Viacom B VIAB AllncBrnstnHldg AB 22.27 0.02 CanonADR CAJ 29.36 -0.33 FactSetResearchSys FDS 149.16 0.62 LinkedInA LNKD 111.03 -1.42 99.06 -0.05 Mylan MYL 4.02 0.18 RealogyHoldings RLGY 33.73 0.45 UnitedTech UTX ExpeditorsIntl EXPD 48.66 0.16 81.25 0.03 VimpelComADR VIP s AlliantEnergy LNT 72.99 0.39 CapOneFnl COF 69.76 -0.45 FedRlty FRT 152.42 0.29 LloydsBankingADR LYG 3.91 0.01 128.59 -1.20 NXP Semi NXPI 31.30 0.04 RealtyIncome O 61.46 0.05 UnitedHealthGroup UNH ExpressScriptsHldg ESRX 67.38 0.05 64.02 -1.62 VodafoneGroupADR VOD AllisonTransmissn ALSN 26.56 -0.14 CardinalHealth CAH 81.48 0.20 FedEx FDX 162.65 0.02 LockheedMartin LMT 218.00 -3.26 117.91 -0.71 Nasdaq NDAQ 113.65 -0.40 RedHat RHT 73.24 0.70 UniversalHealthB UHS F5Networks FFIV 103.14 0.15 26.34 -0.04 WPPADR WPPGY Allstate ALL 66.19 -0.47 Carlisle CSL 97.28 -0.52 Ferrari RACE 41.15 0.47 Loews L 38.36 -0.28 30.80 -0.79 NetApp NTAP 82.33 -0.01 RegencyCtrs REG 73.32 0.13 UnumGroup UNM FacebookClA FB 113.05 0.51 144.48 -1.28 WalgreensBootsAll WBA AllyFinancial ALLY 18.34 0.18 CarMax KMX 48.83 0.39 FiatChryslerAutos FCAU 7.62 -0.15 Lowe's LOW 74.77 -0.01 8.65 0.02 NeteaseADR NTES 48.12 -0.60 RegionsFinancial RF 8.06 -0.02 VEREIT VER Fastenal FAST 48.90 0.07 98.36 -1.23 WesternDigital WDC AltriaGroup MO 60.88 -0.53 Carnival CCL 48.92 0.86 FibriaCelulose ADR FBR 9.45 0.14 LuxotticaGroupADR LUX 54.49 -0.37 64.07 -0.35 Netflix NFLX 32.14 0.02 ReinsuranceGrp RGA 94.31 -0.70 VF VFC FifthThirdBancorp FITB 17.10 -0.11 12.50 -0.04 WholeFoods WFM AlumofChinaADR ACH 8.09 -0.11 Carnival ADR CUK 50.40 0.81 FidNtlFnl FNF 32.94 0.19 LyondellBasell LYB 85.37 0.66 74.14 0.23 NewsCorpClA NWSA 119.41 0.03 RelianceStl RS 68.34 0.45 VISAClA V FirstSolar FSLR 68.46 0.23 13.05 0.03 WillisTowersWatson WLTW AmbevADR ABEV 5.12 0.01 Carters CRI 101.25 0.26 FNFVGroup FNFV 10.61 ... M&T Bnk MTB 111.25 -0.72 126.59 0.81 NewsCorpClB NWS 93.47 1.71 RenaissanceRe RNR 116.01 -1.21 VailResorts MTN 99.77 -0.54 65.22 -0.41 WynnResorts WYNN Ameren AEE 49.25 0.26 Caterpillar CAT 75.29 1.61 FidelityNtlInfo FIS 62.62 -0.27 MGMResortsIntl MGM 20.52 -0.24 Fiserv FISV NorthernTrust NTRS RepublicServices RSG 48.12 0.24 ValeADR VALE 4.04 0.20 11.77 -0.14 51.08 1.31 Xilinx XLNX 47.02 -0.31 AmericaMovilADR AMX 15.30 0.07 Celanese A CE 64.96 -0.38 58.comADR WUBA 56.48 -0.04 MPLX MPLX 27.81 0.27 FlextronInt FLEX NorwegianCruise NCLH ResMed RMD 55.47 -0.88 ValeantPharmIntl VRX 31.09 -2.34 33.11 -0.26 18.31 0.36 Yahoo YHOO 34.86 0.06 AmCampus ACC 45.14 -0.23 CemexADR CX 7.02 0.18 FirstDataClA FDC 12.01 0.39 MSCI MSCI 70.74 -0.86 FLIR Sys FLIR NuanceComms NUAN RestaurantBrands QSR 37.63 -0.38 ValeroEnergy VLO 65.84 0.94 28.53 0.10 34.48 0.05 Yandex YNDX 15.08 0.10 AEP AEP 65.06 -0.02 CencosudADR CNCO 7.38 -0.05 FirstRepublicBank FRC 66.66 -0.17 MSCIndlDirect MSM 74.57 -0.25 s Fortinet FTNT NVIDIA NVDA ReynoldsAmer RAI 49.70 -0.58 Valspar VAL 105.88 0.88 5.27 0.06 274.76 -1.68 ZionsBancorp ZION 25.02 0.08 AmericanExpress AXP 60.47 -0.16 CenovusEnergy CVE 12.76 0.07 FirstEnergy FE 36.16 0.18 Macerich MAC 78.55 -0.15 FrontierComms FTR OReillyAuto ORLY RioTinto ADR RIO 27.71 0.04 Vantiv VNTV 52.56 -0.54 38.97 -0.36 68.49 0.04 AmericanFinancial AFG 70.21 -0.77 Centene CNC 63.76 1.06 FleetCorTechs FLT 145.86 -0.24 MacquarieInfr MIC 64.99 1.31 Garmin GRMN OldDominionFreight ODFL RiteAid RAD 8.07 0.07 VarianMed VAR 77.73 -0.96 91.32 1.24 49.73 0.13 NYSE MKT AmericanIntl AIG 52.98 -0.46 CenterPointEnergy CNP 21.00 0.06 Flowserve FLS 44.14 -0.32 Macys M 43.48 0.06 GileadSciences GILD OpenText OTEX RobHalfIntl RHI 44.23 0.60 Ventas VTR 60.96 -0.23 32.18 -0.03 53.45 -0.23 113.35 -0.26 AmericanTowerREIT AMT 100.35 0.77 CenturyLink CTL 31.16 0.14 Fluor FLR 54.12 -0.04 MagelnPtnrs MMP 68.24 0.69 Goodyear GT Paccar PCAR BritishAmTobADR BTI Rockwell ROK 111.57 -1.48 Verizon VZ 53.56 0.65 15.07 -0.08 204.60 -1.56 34.12 -0.70 AmericanWaterWorks AWK 67.63 0.08 Chevron CVX 94.85 1.26 FomentoEconMexADR FMX 92.52 -0.42 MagnaInt MGA 41.40 -0.57 Grifols ADR GRFS PaneraBreadClA PNRA CheniereEnergy LNG RockwellCollins COL 91.25 -0.42 VipshopHldgsADR VIPS 12.58 0.17 32.06 0.25 44.66 -1.24 27.95 -0.23 Amerigas APU 43.04 0.52 ChinaEasternAirADR CEA 26.02 -0.09 FootLocker FL 63.47 -0.32 Mallinckrodt MNK 60.06 -0.38 HDSupplyHoldings HDS Patterson PDCO CheniereEngyPtnr CQP RogerComm B RCI 38.90 0.37 VMware VMW 51.08 -0.77 77.30 -0.77 53.99 0.04 32.98 0.31 AmerprsFncl AMP 91.98 -0.78 ChinaLifeInsADR LFC 11.80 -0.26 FordMotor F 13.06 -0.20 ManpowerGroup MAN 79.88 0.73 Hasbro HAS Paychex PAYX ImpOil IMO RollinsInc ROL 26.79 -0.03 VornadoRealtyTrust VNO 91.26 0.09 AmeriSrcBrg ABC 86.17 -1.10 ChinaMobileADR CHL 54.35 0.57 ForestCityRealtyA FCE/A 21.02 0.08 ManulifeFinancial MFC 13.93 -0.16 RoperTechnologies ROP 180.53 0.57 VoyaFinancial VOYA 29.81 -0.76 Ametek AME 49.07 -0.28 ChinaPetroleumADR SNP 61.34 -0.47 ForestCityRealtyB FCE/B 20.89 -0.07 MarathonOil MRO 10.29 0.10 RoyalBkCanada RY 55.85 -0.84 VulcanMaterials VMC 105.11 0.51 AmphenolClA APH 57.17 0.31 ChinaSoAirlinesADR ZNH 30.45 -0.01 FortBrandsHomeSec FBHS 54.56 -0.09 MarathonPetroleum MPC 36.87 -0.37 RoyalBkScotlandADR RBS 6.37 -0.06 WABCO Hldg WBC 103.84 -0.02 WSJ.com/commodities Thursday, March 24, 2016 AnadarkoPetroleum APC 46.27 -0.02 ChinaTelecomADR CHA 50.89 1.00 Franco-Nevada FNV 61.37 0.67 MarineHarvestADR MHG 15.50 -0.09 Cash Prices| RoyalCaribbean RCL 74.47 1.17 WECEnergyGroup WEC 58.89 0.06 AngloGoldAshADR AU 13.05 0.20 ChinaUnicomADR CHU 12.81 0.10 FranklinResources BEN 38.09 -0.48 Markel MKL 878.80 -6.37 RoyalDutchADRA RDS/A 48.28 0.58 W.P.Carey WPC 61.44 0.24 These prices reflect buying and selling of a variety of actual or “physical” AnheuserBuschADR BUD 121.58 -0.58 ChipotleMex CMG 471.37 -3.09 Freeport-McMoRan FCX 10.11 0.36 Marsh&McLennan MMC 59.80 0.26 77.47 -0.08 10.44 0.02 119.61 0.03 42.57 -0.32 153.67 -0.17 RoyalDutchADRB RDS/B 48.72 0.47 Wabtec WAB commodities in the marketplace—separate from the futures price on an AnnalyCap NLY Chubb CB FreseniusMedADR FMS MrtnMarMat MLM 79.44 -0.05 WalMart WMT 68.00 0.54 24.69 -0.03 s CHT 33.84 0.38 AJG 43.98 -0.04 30.89 -0.05 SAPADR SAP AnteroResources AR ChunghwaTelecomADR Gallagr Masco MAS 47.32 -2.59 WasteConnections WCN 64.69 0.17 exchange, which reflects what the commodity might be worth in future 139.97 0.47 CHD 91.45 -0.12 GPS 28.76 0.04 91.91 -0.22 SINOPECShanghaiADR SHI Anthem ANTM Church&Dwight Gap MasterCard MA 20.14 0.07 s WasteMgt WM 59.11 0.20 months. 101.13 0.62 Cigna CI 137.95 0.08 IT 86.17 -0.11 s 96.33 0.49 SKTelecomADR SKM Aon AON Gartner McCormick MKC 94.27 -0.26 Waters WAT 129.83 -0.82 48.85 0.99 CimarexEngy XEC 95.62 1.15 Gazit-Globe GZT 8.90 -0.10 s 96.14 2.47 SLGreenRealty SLG Thursday Thursday Apache APA McCormickVtg MKC/V 72.44 0.66 s Watsco WSO 133.71 2.70 40.37 0.02 Citigroup C 41.94 -0.43 GenDynam GD 129.08 -5.24 123.29 -0.90 Salesforce.com CRM ApartmtInv AIV McDonalds MCD 31.89 -0.33 WeatherfordIntl WFT 7.41 0.14 Hides,hvy native steers piece fob-u 73.500 16.73 -0.33 CitizensFinancial CFG 21.59 -0.10 GenElec GE 31.11 0.04 96.39 -0.83 SallyBeauty SBH ApolloGlobalMgmtA APO McGrawHillFin MHFI 38.87 -0.53 WellsFargo WFC 48.90 -0.86 Energy Wool,64s,staple,Terr del-u,w 3.65 77.39 -0.75 Clorox CLX 126.56 -0.52 GeneralGrowthProp GGP 28.74 -0.20 157.29 2.26 SanofiADR SNY Propane,tet,Mont Belvieu-g Aptargroup ATR McKesson MCK 29.52 0.02 Welltower HCN 66.96 0.08 0.4380 WTR 31.45 0.07 Coach COH 38.68 -0.07 GeneralMills GIS 61.36 0.35 81.98 0.28 SasolADR SSL AquaAmerica MeadJohnNutr MJN s 68.84 0.55 WestPharmSvcs WST 65.35 -0.02 Butane,normal,Mont Belvieu-g 0.5373 Grains and Feeds ARMK 32.51 -0.02 CocaCola KO 45.58 0.12 GeneralMotors GM 30.96 -0.35 MD 64.27 -0.64 SCANA SCG Aramark Mednax 72.58 -0.38 WestarEnergy WR 48.30 0.48 NaturalGas,HenryHub-i 1.720 Barley,top-quality Mnpls-u n.a. ArcelorMittalADR MT 4.26 0.09 Coca-ColaFemsaADR KOF 80.98 0.50 Genpact G 26.35 ... MDT 73.97 -0.53 Schlumberger SLB Medtronic 28.09 0.06 WesternGasEquity WGP 32.12 0.45 NaturalGas,TranscoZone3-i 1.700 Bran,wheat middlings, KC-u 60 ADM 36.47 -0.13 CocaColaEnt CCE 49.59 -0.21 GenuineParts GPC 97.72 0.10 Merck MRK 53.07 -0.01 SchwabC SCHW ArcherDan 47.30 -0.44 WesternGasPartners WES 40.44 0.49 NaturalGas,TranscoZone6NY-i 1.120 Corn,No. 2 yellow,Cent IL-bp,u 3.6000 ArrowElec ARW 62.74 0.25 ColgatePalmolive CL 69.91 0.11 Gildan GIL 29.42 -0.36 MetLife MET 42.30 -1.11 SealedAir SEE 102.55 0.72 WesternUnion WU 18.78 -0.02 NaturalGas,PanhandleEast-i 1.540 Corn gluten feed,Midwest-u,w 90.7 Ashland ASH 107.22 -0.13 ColumbiaPipeline CPGX 25.04 0.02 GlaxoSmithKlineADR GSK 39.56 0.19 MettlerToledo MTD 337.89 0.71 SempraEnergy SRE 23.59 -0.29 WestlakeChemical WLK 46.38 -0.44 NaturalGas,Opal-i 1.570 Corn gluten meal,Midwest-u,w 447.6 Assurant AIZ 77.18 -0.78 Comerica CMA 38.78 0.21 GlblPymts GPN 60.17 0.50 MichaelKorsHldgs KORS 55.53 -0.40 ServiceCp SCI 35.74 0.13 WestpacBankingADR WBK 23.50 -0.70 NaturalGas,MarcellusNE PA-i 1.090 Cottonseed meal-u,w 210 AstraZenecaADR AZN 28.00 -0.01 ConAgraFoods CAG 44.07 0.76 Goldcp GG 15.78 0.37 MidAmApt MAA 98.31 -0.64 ServiceMasterGlb SERV 61.69 -0.56 WestRock WRK 38.53 -0.67 NaturalGas,HaynesvilleN.LA-i 1.650 Hominy feed,Cent IL-u,w 90 AtmosEnergy ATO 72.38 0.54 ConchoResources CXO 103.61 2.07 GoldmanSachs GS 153.00 -1.08 MitsubishiUFJADR MTU 4.63 -0.14 ServiceNow NOW 18.86 -0.22 Weyerhaeuser WY 30.34 0.10 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.250 Meat-bonemeal,50% pro Mnpls-u,w 265 Autoliv ALV 114.05 0.55 ConocoPhillips COP 40.04 0.19 GraceWR GRA 70.61 0.58 MizuhoFinancialADR MFG 2.98 -0.12 ShawCom B SJR 281.35 -1.64 Whirlpool WHR 175.09 0.08 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 9.450 Oats,No.2 milling,Mnpls-u 2.4200 AutoNation AN 47.97 -0.01 ConEd ED 75.56 0.21 Grainger GWW 229.15 0.04 MobileTeleSysADR MBT 8.02 0.35 SherwinWilliams SHW 35.69 0.40 WhiteWaveFoods WWAV 39.08 -0.22 Rice, 5% Broken White, Thailand-l,w 365.00 s AutoZone AZO 803.06 -2.23 ConstBrands A STZ 149.90 -0.21 GreatPlainsEnergy GXP 31.70 0.35 MohawkIndustries MHK 186.82 0.51 ShinhanFinADR SHG 121.42 3.41 Williams WMB 15.35 -0.91 Metals Rice, Long Grain Milled, No. 2 AR-u,w 22.75 Avalonbay AVB 185.09 -0.42 ConstBrands B STZ/B 149.42 0.18 GpoAeroportuarADR PAC 84.74 -0.58 MolsonCoors B TAP 95.31 -0.21 SignetJewelers SIG 17.23 0.10 WilliamsPartners WPZ 18.45 -0.76 Sorghum,(Milo) No.2 Gulf-u 7.4113 Avangrid AGR 40.51 0.23 ContinentalRscs CLR 29.05 0.61 GpoAvalAccionesADR AVAL 7.21 -0.15 Monsanto MON 90.10 0.03 SilverWheaton SLW Gold, per troy oz WilliamsSonoma WSM 54.22 -1.09 Engelhard industrial SoybeanMeal,Cent IL,rail,ton48%-u AveryDennison AVY 70.99 -0.36 Cooper COO 148.80 0.19 GpFinSantandMexADR BSMX 8.85 0.04 Moodys MCO 92.95 -1.31 SimonPropertyGroup SPG 201.44 -0.06 1224.73 281.80 WiproADR WIT 12.40 0.09 Aviva ADR AV 13.01 -0.28 CoreLabs CLB 113.87 1.51 GrupoTelevisaADR TV 27.68 -0.18 MorganStanley MS 24.93 -0.34 SixFlagsEnt SIX 53.82 0.28 Engelhard fabricated 1316.58 Soybeans,No.1 yllw IL-bp,u 8.9500 WooriBankADR WF 23.88 -0.62 Avnet AVT 44.02 -0.37 Corning GLW 20.25 0.12 HCAHoldings HCA 76.37 -0.58 Mosaic MOS 27.26 -0.76 SkechersUSAClA SKX 30.22 -0.01 Handy & Harman base 1221.00 Wheat,Spring14%-pro Mnpls-u 5.7900 Workday WDAY 72.05 0.79 AxaltaCoatingSys AXTA 28.60 0.05 CotyClA COTY 26.69 0.22 HCP HCP 31.69 0.06 MotorolaSolutions MSI 72.59 -0.56 SmithAO AOS 74.85 0.41 Handy & Harman fabricated 1355.31 Wheat,No.2 soft red,St.Louis-bp,u 4.7100 WyndhamWorldwide WYN 74.96 0.23 AxisCapital AXS 54.46 -0.60 Credicorp BAP 123.99 -2.58 HDFCBankADR HDB 58.53 -0.28 NTTDoCoMoADR DCM 23.41 0.24 Smith&NephewADR SNN 32.32 0.06 LBMA Gold Price AM *1232.20 Wheat - Hard - KC (USDA) $ per bu-u 4.4425 XL Group XL 36.61 -0.44 BB&T BBT 33.69 -0.45 CreditSuisseADR CS 14.36 -0.36 HP HPQ 12.07 0.05 NVR NVR 1726.00 -3.11 Smucker SJM 128.71 -0.06 LBMA Gold Price PM *1217.60 Wheat,No.1soft white,Portld,OR-u n.a. XcelEnergy XEL 41.23 0.11 BCE BCE 44.82 0.16 CrescentPntEnrg CPG 13.42 -0.10 HSBCHoldingsADR HSBC 31.21 -0.39 NationalGridADR NGG 70.43 0.53 SnapOn SNA 157.84 2.03 Krugerrand,wholesale-e 1270.36 Xerox XRX 10.63 0.07 BHPBillitonADR BHP 25.64 0.12 CrestwoodEquity CEQP 10.20 0.43 Halliburton HAL 35.22 0.19 NtlOilwellVarco NOV 31.15 -0.23 SOQUIMICH ADR SQM 20.47 -0.48 Maple Leaf-e 1282.58 Food s Xylem Inc. XYL 39.82 0.45 BHPBillitonADR BBL 22.47 0.08 CrownCastl CCI 85.58 -0.08 Hanesbrands HBI 28.16 0.10 NtlRetailProp NNN 45.76 0.22 SonocoProducts SON 47.91 -0.22 American Eagle-e 1282.58 Beef,carcass equiv. index YPFADR YPF 18.01 0.22 BPADR BP 30.42 0.22 CrownHoldings CCK 48.63 -0.47 HarleyDavidson HOG 47.86 -0.51 NetSuite N 66.44 0.77 SonyADR SNE 25.47 -0.10 Mexican peso-e 1480.76 choice 1-3,600-900 lbs.-u 210.69 YanzhouCoalADR YZC 5.07 -0.02 BRFADR BRFS 14.15 -0.15 CubeSmart CUBE 32.16 0.27 HarmanIntlInds HAR 85.66 0.57 NewOrientalEducADR EDU 34.88 0.65 Southern SO 50.90 0.23 Austria crown-e 1200.31 select 1-3,600-900 lbs.-u 202.03 YoukuTudouADR YOKU 27.48 0.01 t BTGroupADR BT 31.18 -0.37 Cummins CMI 107.40 -0.34 Harris HRS 78.16 -0.88 NY CmntyBcp NYCB 15.68 -0.09 SoCopper SCCO 27.97 0.51 Austria phil-e 1282.58 Broilers,dressed 'A'-u 1.1150 YumBrands YUM 79.35 -1.20 BakerHughes BHI 44.68 -0.28 DDR Corp DDR 16.65 -0.05 HrtfrdFnl HIG 45.58 -0.28 Newell NWL 42.98 -0.11 SowestAir LUV 44.06 -0.37 Broilers, National comp wghtd-u,w 0.8656 ZayoGroupHoldings ZAYO 23.57 -0.34 Silver, troy oz. Ball BLL 70.24 -0.24 DTEEnergy DTE 89.46 0.07 Helmerich&Payne HP 58.10 0.26 NewfldExpl NFX 32.38 0.26 SpectraEnergy SE 30.44 0.04 Engelhard industrial 15.3000 Butter,AA Chicago 1.9225 ZimmerBiomet ZBH 103.74 -0.69 BancoBilbaoVizADR BBVA 6.79 -0.10 Danaher DHR 94.78 -0.06 Herbalife HLF 60.76 -0.71 NewMarket NEU 387.85 -4.97 SpectraEnergyPtrs SEP 47.43 -0.44 Engelhard fabricated 18.3600 Cheddar cheese,bbl,Chicago 145.00 Zoetis ZTS 42.48 -0.16 BancodeChileADR BCH 62.67 -0.05 Darden DRI 65.77 -0.75 Hershey HSY 90.07 0.15 NewmontMining NEM 25.40 0.42 SpectrumBrndsHldgs SPB 106.93 0.20 Handy & Harman base 15.2800 Cheddar cheese,blk,Chicago 149.00 BcoSantChileADR BSAC 18.84 -0.20 DaVitaHlthcrPtrs DVA 71.55 -0.77 Hess HES 52.10 0.50 NextEraEnergy NEE 118.48 0.79 SpiritAeroSystemsA SPR 47.33 -0.07 Handy & Harman fabricated 19.1000 Milk,Nonfat dry,Chicago lb. 73 11.08 0.05 NASDAQ BancoSantanderADR SAN 4.42 -0.07 Deere DE 80.24 -0.60 HewlettPackardEnt HPE 17.57 0.11 Nidec ADR NJ 17.40 -0.34 SpiritRealtyCap SRC LBMA spot price £10.8200 Cocoa,Ivory Coast-w 3302 3.26 0.11 BanColombiaADR CIB 31.48 -1.33 DelhaizeGroupADR DEG 26.05 -0.08 HiltonWorldwide HLT 22.07 0.13 NielsenHoldings NLSN 52.00 0.07 Sprint S AMCNetworks A AMCX 63.89 0.26 (U.S.$ equivalent) 15.2800 Coffee,Brazilian,Comp 1.3692 54.26 -0.51 BankAm BAC 13.68 0.06 DelphiAutomotive DLPH 72.37 -0.17 HollyFrontier HFC 35.33 0.26 NikeClB NKE 61.65 -0.79 StJudeMedical STJ Ansys ANSS 87.30 0.19 Coins,wholesale $1,000 face-a 13480 Coffee,Colombian, NY 1.5151 103.51 0.56 42.69 0.02 BkMntrl BMO 58.80 -0.72 DeltaAir DAL 47.84 -1.07 HomeDepot HD 130.46 0.24 NipponTelegraphADR NTT 44.43 0.19 StanleyBlDck SWK ARMHoldingsADR ARMH Eggs,large white,Chicago-u 0.9450 37.28 -0.24 17.54 -0.46 26.69 -0.35 23.03 0.01 StarwoodHotels HOT 82.13 -0.54 96.93 -0.78 Other metals BankNY Mellon BK DeutscheBank DB HondaMotorADR HMC NiSource NI ASMLHolding ASML LBMA Platinum Price PM *960.0 Flour,hard winter KC 13.50 47.06 -0.80 26.47 0.71 111.32 -0.89 32.34 -0.21 StateSt STT 58.75 -0.89 53.56 -0.36 BkNovaScotia BNS DevonEnergy DVN Honeywell HON NobleEnergy NBL AcadiaHealthcare ACHC Platinum,Engelhard industrial 964.0 Hams,17-20 lbs,Mid-US fob-u 0.54 8.75 -0.09 106.28 0.18 43.27 -0.42 5.78 -0.09 StatoilADR STO 15.16 0.14 32.21 -0.37 BarclaysADR BCS DiageoADR DEO HormelFoods HRL NokiaADR NOK ActivisionBliz ATVI Platinum,Engelhard fabricated 1064.0 Hogs,Iowa-So. Minnesota-u 63.58 198.20 -0.65 46.71 0.08 29.40 0.05 4.42 -0.13 Steris STE 69.22 -0.20 AdobeSystems ADBE 92.52 0.36 Bard CR BCR DicksSprtgGds DKS DR Horton DHI NomuraHoldingsADR NMR Palladium,Engelhard industrial 579.0 Pork bellies,12-14 lb MidUS-u n.a. ABX 13.56 0.29 DLR 86.16 -0.96 HostHotels&Resorts HST 16.18 ... JWN 55.97 -0.07 STMicroelectronics STM 5.49 -0.02 AkamaiTechnologies AKAM 54.84 -0.28 BarrickGold DigitalRealtyTrust Nordstrom Palladium,Engelhard fabricated 679.0 Pork loins,13-19 lb MidUS-u 0.9071 Baxalta BXLT 40.00 -0.06 DiscoverFinSvcs DFS 49.68 -0.18 HuanengPowerADR HNP 34.98 0.60 NorfolkSouthern NSC 83.87 1.01 Stryker SYK 105.22 -0.37 AlexionPharm ALXN 133.19 -0.44 Aluminum, LME, $ per metric ton *1480.0 Steers,Tex.-Okla. Choice-u n.a. BaxterIntl BAX 40.11 -0.58 Disney DIS 97.22 0.39 Hubbell HUBB 100.96 0.03 NorthropGrumman NOC 194.20 -0.76 SumitomoMitsADR SMFG 6.06 -0.19 AlignTechnology ALGN 70.23 0.45 Copper,Comex spot 2.2245 Steers,feeder,Okla. City-u,w 186.67 BectonDickinson BDX 149.13 -0.11 DollarGeneral DG 83.95 -0.31 Humana HUM 184.07 0.48 Novartis ADR NVS 73.30 -0.61 SunLifeFinancial SLF 31.37 -0.13 Alkermes ALKS 31.54 0.58 Iron Ore, 62% Fe CFR China-s 55.5 Bemis BMS 51.88 -0.20 DominionResources D 73.42 -0.09 HuntingtonIngalls HII 137.33 -1.06 NovoNordiskADR NVO 53.57 -0.44 SuncorEnergy SU 27.07 0.15 AlnylamPharm ALNY 60.28 1.22 Shredded Scrap, US Midwest-s,w Berkley WRB 53.85 -0.54 Dominos DPZ 128.74 -1.38 HyattHotels H 47.26 -0.10 Nucor NUE 46.48 0.43 SunocoLogistics SXL 23.90 -0.33 AlphabetClA GOOGL 754.84 -2.72 204 Fats and Oils Steel, HRC USA, FOB Midwest Mill-s Corn oil,crude wet/dry mill-u BerkHathwy A BRK/A 210530-840.00 DouglasEmmett DEI 29.62 -0.18 ICICIBankADR IBN 6.87 -0.01 NuSTAREnergy NS 39.38 -0.24 SunTrustBanks STI 36.60 -0.03 AlphabetClC GOOG 735.30 -2.76 421 41.5000 BerkHathwy B BRK/B 140.11 -0.85 Dover DOV 64.61 -0.13 IHSClA IHS 119.57 -1.43 OGEEnergy OGE 28.09 ... SynchronyFinancial SYF 28.45 0.03 Amazon.com AMZN 582.95 13.32 Grease,choice white,Chicago-u 0.3100 BestBuy BBY 31.29 -0.13 DowChemical DOW 51.32 0.14 IMSHealthHoldings IMS 25.60 -0.23 ONEOK OKE 28.68 0.24 SyngentaADR SYT 81.57 -0.46 Amdocs DOX 58.93 -0.43 Fibers and Textiles Lard,Chicago-u 0.2900 BlackRock BLK 334.28 -4.95 DrPepperSnap DPS 88.23 -1.73 INGGroepADR ING 12.18 -0.09 ONEOKPartners OKS 29.45 0.25 Sysco SYY 46.24 -0.11 Amerco UHAL 345.03 -8.00 Burlap,10-oz,40-inch NY yd-n,w 0.5150 Soybean oil,crude;Centl IL-u 0.3156 BlackstoneGroup BX 26.45 -0.51 DrReddysLabADR RDY 45.09 -0.02 Invesco IVZ 30.33 -0.07 OccidentalPetrol OXY 68.51 0.22 TEConnectivity TEL 60.96 -0.06 AmericaMovilClAADR AMOV 15.21 0.02 Cotton,1 1/16 std lw-mdMphs-u 0.5772 Tallow,bleach;Chicago-u 0.3200 t BlockHR HRB 26.61 -0.38 DuPont DD 63.95 0.20 ITCHoldings ITC 42.48 -0.11 Och-ZiffCapMgmt OZM 4.00 -0.01 TEGNA TGNA 23.37 -0.42 AmerAirlinesGrp AAL 40.50 -1.42 Cotlook 'A' Index-t *66.30 Tallow,edible,Chicago-u 0.3400 BdwlkPipePtnr BWP 13.77 -0.06 DukeEnergy DUK 79.75 -0.06 IDEX IEX 82.17 0.30 OldRepublic ORI 17.92 -0.04 TELUS TU 31.44 -0.04 AmeriCapAg AGNC 18.43 -0.05 132.12 -0.74 21.74 -0.10 101.39 -0.71 34.19 -0.11 17.88 0.22 149.24 0.48 Boeing BA DukeRealty DRE IllinoisToolWorks ITW OmegaHealthcare OHI TERNIUMADR TX Amgen AMGN KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; BorgWarner BWA 36.92 0.18 EMC EMC 26.48 -0.02 InfosysADR INFY 18.81 0.15 OmnicomGroup OMC 81.34 0.05 TIMPartADR TSU 11.09 0.22 AmTrustFinSvcs AFSI 25.76 -0.14 G=ICE; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; BostonProperties BXP 123.87 -0.38 ENIADR E 29.67 -0.29 Ingersoll-Rand IR 61.28 -0.13 OpkoHealth OPK 11.28 -0.05 TJX TJX 77.12 -0.60 AnalogDevices ADI 58.64 0.31 R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 3/23 BosSci BSX 17.93 -0.23 EOG Res EOG 74.30 -0.04 IngramMicroClA IM 36.19 -0.14 Oracle ORCL 40.97 0.22 TaiwanSemiconADR TSM 25.73 0.05 Apple AAPL 105.67 -0.46 Source: WSJ Market Data Group

Contract Open Contract Open Contract Open Futures Contracts |WSJ.com/commodities Open High hilo Low Settle Chg interest Open High hilo Low Settle Chg interest Open High hilo Low Settle Chg interest Metal & Petroleum Futures Agriculture Futures Coffee (ICE-US)-37,500 lbs.; cents per lb. Canadian Dollar (CME)-CAD 100,000; $ per CAD 130.95 130.95 127.40 127.55 –3.55 80,652 .7574 .7575 .7521 .7545 –.0026 95,576 Contract Open Corn (CBT)-5,000 bu.; cents per bu. May June 132.85 132.85 129.30 129.50 –3.50 43,193 .7571 .7575 .7526 .7547 –.0027 1,434 Open High hi lo Low Settle Chg interest May 368.75 370.25 367.25 370.00 1.50 613,585 July Sept July 373.00 374.50 371.50 374.50 1.25 319,545 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. British Pound (CME)-£62,500; $ per £ Copper-High (CMX)-25,000 lbs.; $ per lb. 16.72 16.72 15.76 15.87 –.84 325,815 Oats (CBT)-5,000 bu.; cents per bu. May June 1.4120 1.4187 1.4059 1.4154 .0036 249,142 March 2.2250 2.2325 2.2100 2.2245 –0.0060 658 16.63 16.63 s 15.77 15.88 –.71 236,126 May 187.50 188.75 183.75 187.00 –.50 7,586 July Sept 1.4117 1.4195 1.4071 1.4164 .0036 767 May 2.2395 2.2435 2.2055 2.2290 –0.0065 99,102 -112,000 lbs.; cents per lb. July 197.50 198.75 193.75 197.25 –.25 2,382 Sugar-Domestic (ICE-US) Swiss Franc (CME)-CHF 125,000; $ per CHF (CMX)-100 troy oz.; $ per troy oz. 27.15 27.15 26.50 26.36 –.66 2,487 Gold Soybeans (CBT)-5,000 bu.; cents per bu. May June 1.0288 1.0303 1.0265 1.0285 –.0001 37,100 March 1214.20 1221.30 1214.20 1221.40 –2.30 52 905.25 911.75 902.00 910.50 5.25 349,137 July 26.99 27.00 s 26.99 26.41 –.52 2,151 May Australian Dollar (CME)-AUD 100,000; $ per AUD April 1220.70 1224.20 1211.20 1221.60 –2.40 152,305 912.00 918.75 908.75 917.75 5.50 178,865 -50,000 lbs.; cents per lb. July Cotton (ICE-US) June .7508 .7511 .7450 .7494 –.0008 110,663 June 1222.10 1225.60 1212.60 1223.50 –2.10 243,542 May 58.26 58.31 57.33 57.72 –.67 111,746 Soybean Meal (CBT)-100 tons; $ per ton. Sept .7452 .7477 .7420 .7463 –.0008 126 Aug 1223.80 1227.00 1215.10 1224.90 –2.00 32,065 271.00 276.60 270.10 275.30 4.40 157,117 July 58.01 58.01 57.17 57.58 –.52 48,224 1226.90 1226.90 1220.20 1226.20 –2.00 19,222 May Mexican Peso (CME)-MXN 500,000; $ per MXN Oct July 273.60 279.10 272.70 277.80 4.20 102,011 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. 1228.10 1229.10 1216.80 1227.60 –1.80 21,449 June .05648 .05659 .05612 .05630 –.00020 105,614 Dec -60,000 lbs.; cents per lb. May 135.95 136.20 134.50 135.90 .05 8,890 Soybean Oil (CBT) -€125,000; $ per € Palladium (NYM) - 50 troy oz.; $ per troy oz. 33.36 33.44 32.83 33.18 –.18 207,718 July 135.60 136.00 134.45 135.70 .10 2,617 Euro (CME) May 1.1208 1.1214 1.1170 1.1197 –.0011 320,078 March 573.80 573.80 573.80 572.95 –9.80 14 33.59 33.67 33.06 33.41 –.18 109,077 June July 1.1239 1.1251 1.1209 1.1236 –.0011 2,014 April 580.40 580.40 580.40 572.50 –9.85 42 -2,000 cwt.; $ per cwt. Interest Rate Futures Sept 583.00 586.00 570.20 572.65 –10.45 21,889 Rough Rice (CBT) June May 1028.00 1032.00 t 1012.50 1026.50 –4.00 10,301 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 575.15 575.15 575.15 572.80 –10.40 556 Sept July 1052.50 1054.00 t 1041.50 1054.00 –3.50 1,807 June 163-090 164-100 162-160 163-010 –15.0 501,174 Index Futures Dec 573.00 573.00 573.00 574.05 –10.40 63 Wheat (CBT)-5,000 bu.; cents per bu. Sept 162-110 162-110 162-110 161-280 –15.0 29 Mini DJ Industrial Average (CBT)-$5 x index -50 troy oz.; $ per troy oz. Platinum (NYM) May 463.50 464.50 458.50 463.00 … 216,817 Treasury Notes (CBT)-$100,000; pts 32nds of 100% June 17423 17463 17299 17439 13 94,332 979.40 979.40 s 979.00 951.90 –8.40 1 March July 470.75 472.00 466.25 470.75 … 123,701 June 129-085 129-150 128-310 129-070 –3.5 2,628,750 Sept 17271 17360 17238 17355 14 216 962.50 964.10 943.00 953.50 –8.20 40,305 July Wheat (KC)-5,000 bu.; cents per bu. Sept 128-300 128-300 128-270 128-315 –4.0 103 S&P 500 Index (CME)-$250 x index Silver (CMX)-5,000 troy oz.; $ per troy oz. May 472.00 473.00 467.75 471.75 –.50 89,221 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% June 2028.00 2029.00 2012.30 2028.60 –0.20 59,879 March 15.290 15.315 15.180 15.191 –0.072 187 July 483.25 484.00 478.50 482.75 –.50 68,343 March 120-195 120-200 120-182 120-170 –3.2 49,089 Sept 2006.80 2019.80 2006.80 2020.70 –0.10 270 15.275 15.335 15.105 15.199 –0.073 116,036 120-102 120-125 120-037 120-080 –3.2 2,351,152 May Wheat (MPLS)-5,000 bu.; cents per bu. June Mini S&P 500 (CME)-$50 x index -1,000 bbls.; $ per bbl. Crude Oil, Light Sweet (NYM) May 512.00 514.75 508.50 514.00 2.00 26,803 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% June 2028.00 2030.25 2012.25 2028.50 –0.15 2,811,251 39.73 39.77 38.33 39.46 –0.33 542,210 May July 519.50 523.00 516.50 522.50 2.50 19,418 March 109-060 109-065 109-055 109-057 –.5 13,411 Sept 2019.75 2022.25 2004.50 2020.75 –0.05 7,638 40.80 40.88 39.50 40.63 –0.24 229,252 109-022 109-030 109-010 109-020 –.7 910,949 June Cattle-Feeder (CME)-50,000 lbs.; cents per lb. June Mini S&P Midcap 400 (CME)-$100 x index 41.50 41.66 40.34 41.41 –0.22 101,203 160.950 161.200 160.800 160.975 –.425 1,915 -$5,000,000; 100 - daily avg. July March 30 Day Federal Funds (CBT) June 1407.60 1411.00 1394.10 1409.30 .90 85,044 Sept 42.40 42.69 41.50 42.44 –0.25 105,598 154.175 155.900 153.775 155.025 .275 14,563 99.638 99.638 99.638 99.637 –.001 79,073 May March Sept 1420.00 1420.00 s 1420.00 1405.00 .90 7 Dec 43.50 43.63 42.50 43.41 –0.21 191,010 99.610 99.610 99.600 99.610 … 188,512 Cattle-Live (CME)-40,000 lbs.; cents per lb. May Dec 1399.70 1399.70 s 1399.70 1406.40 .90 11 Dec'17 46.01 46.15 45.25 45.92 –0.23 104,041 135.375 136.525 134.800 135.850 .400 60,678 -$100,000; pts 32nds of 100% April 10 Yr. Del. Int. Rate Swaps (CBT) Mini Nasdaq 100 (CME)-$20 x index NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 125.125 125.925 124.325 125.375 .275 121,258 June 104.469 104.547 104.016 104.078 –.281 25,533 June June 4395.0 4401.0 4365.0 4397.3 1.8 208,252 April 1.2058 1.2125 1.1752 1.1979 –.0061 36,785 -40,000 lbs.; cents per lb. -$3,000,000; pts of 100% Hogs-Lean (CME) 1 Month Libor (CME) Sept 4381.5 4392.0 4358.0 4390.8 .8 155 May 1.2176 1.2233 1.1868 1.2100 –.0055 97,411 April 70.225 70.225 69.275 69.625 –.050 30,759 July 99.4050 99.4050 t 99.4050 99.4075 .0100 209 Mini Russell 2000 (ICE-US)-$100 x index Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. June 83.400 83.450 80.000 80.850 –1.925 91,583 (CME)-$1,000,000; pts of 100% Eurodollar June 1071.90 1075.40 1059.50 1074.90 3.40 389,964 April 1.4499 1.4750 1.4202 1.4659 .0118 39,552 (CME)-110,000 bd. ft., $ per 1,000 bd. ft. April 99.3475 99.3500 99.3450 99.3475 … 175,431 Lumber Sept 1066.10 1066.10 1066.10 1071.10 3.40 24 May 1.4799 1.5031 1.4512 1.4946 .0114 123,047 July 297.00 299.00 294.20 297.10 –4.90 744 June 99.2500 99.2500 99.2350 99.2400 –.0100 1,205,429 Mini Russell 1000 (ICE-US)-$100 x index Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Sept 297.00 297.90 296.80 297.20 –4.90 104 Sept 99.1500 99.1550 99.1250 99.1350 –.0200 1,061,350 June 1113.50 1121.50 1111.80 1121.50 1.80 6,756 April 1.791 1.827 1.772 1.806 .012 31,492 Milk (CME)-200,000 lbs., cents per lb. Dec 99.0650 99.0700 99.0300 99.0400 –.0300 1,187,015 -$1,000 x index May 1.866 1.901 1.847 1.882 .014 345,105 March 13.78 13.78 13.76 13.77 –.05 3,752 U.S. Dollar Index (ICE-US) 96.10 96.39 96.06 96.17 .11 50,866 June 1.967 2.003 1.954 1.989 .015 82,678 April 13.71 13.90 13.70 13.86 .09 4,868 Currency Futures June 96.13 96.41 96.13 96.23 .11 1,210 July 2.068 2.113 2.064 2.099 .018 103,068 Cocoa (ICE-US)-10 metric tons; $ per ton. Japanese Yen (CME)-¥12,500,000; $ per 100¥ Sept Sept 2.155 2.200 2.150 2.187 .018 87,523 May 2,957 2,972 2,926 2,962 –1 75,204 June .8919 .8925 .8867 .8896 –.0022 146,021 Oct 2.211 2.255 2.202 2.243 .023 79,279 July 2,970 2,980 2,935 2,972 1 62,148 Sept .8923 .8953 .8900 .8926 –.0022 275 Source: SIX Financial Information 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 | Friday, March 25, 2016 THE WALL STREET JOURNAL. HEARD ON THE STREET

Email: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard Chinese Oil At Yahoo, Push Comes to Shove OVERHEARD

Giants Are Starboard Value is taking cost cuts and the plan to fo- The era of falling pump the nuclear option with Ya- Bruised cus on mail, search and blog- prices: It sure was nice while Getting Fit hoo. Shareholders should be Yahoo's quarterly operating ging site Tumblr, which Ya- it lasted. grateful it is moving the proﬁt/loss hoo announced last month, U.S. average gasoline In these tough times, company’s long-running don’t go far enough. The prices climbed back above $2 China’s state oil majors are drama toward an endgame. $120 million cuts only amount to about a gallon on Thursday. That finally getting religion. The activist hedge fund was the first time that has 90 8% of total 2015 operating The biggest, PetroChina, said Thursday it aims to re- expenses. And the points of happened since early January, reported results Wednesday place Yahoo’s entire board 60 focus seem little more than a according to GasBuddy.com. that had discipline written with its own slate of direc- repackaging of the same old The national average is some all over them. Start with tors. This is a clear sign the 30 strategy, or lack thereof. Ya- 31 cents higher now than a guidance that it would cut current board has failed to 0 hoo’s assurance it would “en- month earlier, a climb that production by 2.7% in 2016. make the changes Starboard gage on qualified strategic has coincided with crude-oil Fellow state producer Cnooc was demanding. And given –30 proposals” doesn’t seem to prices rebounding to around made a similar decision ear- continued foot-dragging at have brought it any closer to $40 a barrel. lier this year—an extraordi- Yahoo, it is a needed move. –60 a sale of its core business. What this means for the narily difficult one for com- Starboard has tried to 2014 ‘15 Indeed, any confidence in economy is an open question. panies long politically pressure Yahoo to move Source: FactSet Ms. Mayer investors may Motorist group AAA said that

motivated to prize growth. more quickly to dismantle it- THE WALL STREET JOURNAL. NOAH BERGER/BLOOMBERG NEWS have left seems to be rapidly Americans reaped more than Raising production would self by pursuing a sale of its dissipating. Investors already $100 billion in savings last have required more spending core business. But while the majority of seats. In light of ing loss of $127.5 million in have waited years for her year from falling gas prices. this year with insufficient, company has said it is open the company’s dismal perfor- 2015, down from a profit of turnaround attempts to take That equates to about $550 perhaps even negative, re- to reviewing offers and has mance and its lack of mo- $218.7 million in 2014. hold, and there is little rea- per licensed driver. turns at current oil prices. taken steps to cut costs, it mentum, investors should re- Chief Executive Marissa son to believe they will now. Even so, consumer-spend- That makes PetroChina’s sec- also has shown signs of con- ject management’s attempts Mayer has struggled to Meanwhile, the value Yahoo ing growth, excluding gasoline ond big sign of discipline im- tinued resistance to change. to dig in its heels. sharpen the company’s fo- might garner for its assets in sales, slowed in 2015 from a portant: Its 2015 capital Yahoo added two direc- Yahoo shares have fallen cus, and Yahoo has waffled a sale is dwindling. year earlier. Meanwhile the spending came in 24% below tors to its board earlier this 22% the past year as profit- between plans to spin off or Voting in Starboard’s personal savings rate last fall what it had budgeted and month in an apparent at- ability at its core business separate its stake in Alibaba nominees offers the best hit its highest level in nearly 31% below 2014 levels. Not tempt to make it more diffi- has continued to decline. The Group Holding in a tax-free chance of preserving what is three years. This suggested only did operating cash flow cult for Starboard to gain a company reported an operat- manner. The $400 million in left. —Miriam Gottfried that Americans were pocket- pay for capital expenditure ing, not spending, much of and dividends, it also allow- the savings they reaped at ed it to pare debt. No other the gas pumps. global supermajor finished Granted, gas prices have a 2015 with lower leverage Pro Forma Results Are an Investing Red Flag tendency to increase in the than it began the year says Companies that disclose GAAP. Securities and Ex- underperform in the months spring months leading up to Jefferies. adjusted earnings like to say Before Bad Stuff change Commission Chair- that follow. So it seems the the all-important summer Some investors may be they provide investors with a Earnings per share, pro forma vs. man Mary Jo White recently use of pro forma may keep driving season. Other factors concerned that PetroChina’s better view into their under- reported, most recent quarter suggested the practice might the extent of a company’s are at play, too. These include proven oil-and-gas reserves lying business. What they re- need to be reined in a bit troubles shielded from inves- refineries undertaking sea- fell and, at current rates of ally may be doing is waving Reported Pro forma “even by regulation.” tors when it releases results, sonal maintenance, which production, will be exhaust- a red flag. Investors should But are investors really with the bad news only sink- typically reduces output. ed in 14.6 years from 15.8 in pay attention to it. Halliburton overlooking GAAP? New re- ing in over time. Of course, pump prices 2014. Yet part of that may be Sugarcoating results is Newell Rubbermaid search from quantitative an- The underperformance still are cheap compared with due to how prices affect re- hardly new for U.S. compa- Caterpillar alysts at Evercore ISI sug- was particularly acute for the year-ago average of serves’ viability. Also, re- nies. Lately, though, they Kellogg gest this may indeed be the highly indebted companies $2.42, according to Gas- serve lives are falling across have been ladling on the United Technologies case. They looked at the that must, of course, gener- Buddy.com. And the average the industry. PetroChina’s glaze extra thick. –$0.5 0 0.5 1.0 1.5 stock-market performance of ate adequate cash flows to is still a pittance compared actually last it longer than For companies in the S&P Source: Company reports companies with unusually pay what they owe. Shares with the $3.50 that Ameri- most supermajors and 2015’s 500 in the fourth quarter, large differences between of GAAP-gap companies with cans were paying as recently drop is barely worse than pro forma earnings—earn- forma are required to display GAAP and pro forma results. slowing sales and those ex- as August 2014, or more than Exxon Mobil’s. ings excluding items such as GAAP figures in their quar- A big portion of these lately periencing slow growth rela- $4 during the financial crisis. With futures markets restructuring charges or terly releases as well, and have come from the hard-hit tive to their history also did The bright side, then, is forecasting only a marginal stock-based compensation— they argue that pro forma energy and basic-material poorly. Similar companies that just as consumer spend- rise in oil prices this year, were 59% above earnings un- results count as additional sectors, but also draws heav- with low or nonexisting gaps ing didn’t see as much of a PetroChina shareholders still der generally accepted ac- information that is helpful to ily from other areas, such as performed far better. windfall from falling gasoline are awaiting their salvation. counting principles. That investors. The worry is that health-care and tech. Companies argue pro prices as expected, rising But at least the company is marked the widest so-called by placing too much empha- The analysts’ finding: forma results are valuable. prices right now shouldn’t gaining the strength to with- GAAP gap since the crisis- sis on pro forma figures, Across a wide variety of in- They might be, but just not turn into the typical head- stand pain. struck first quarter of 2009. companies are drawing investing styles, companies in the way that they mean. wind. At least not yet. —Abheek Bhattacharya Companies using pro vestors’ attention away from with big GAAP gaps tend to —Justin Lahart

Bonds | WSJ.com/bonds Tracking Bond Benchmarks Corporate Debt Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in highs and lows for different types of bonds that same company’s share price. Here’s a look at both for two companies in the news. Total return Yield (%), 52-Week Range l Latest Investment-grade spreads that tightened the most… close YTD total return (%) Index Latest Low 0 5 10 15 20 25 High Spread*, in basis points Stock Performance 1871.57 2.4 Broad market Barclays Aggregate 2.290 2.000 l 2.630 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg 7.625 March 30, ’49 n.a. –360 n.a...... 2551.61 3.2 U.S. Corporate Barclays Capital 3.340 2.830 l 3.710 BNP BNP American Media AMRCM 7.000 July 15, ’20 872 –44 n.a...... 2468.73 2.1 Intermediate 2.770 2.230 l 3.120 ConocoPhillips COP 3.350 Nov. 15, ’24 197 –18 238 40.04 0.48 3340.29 5.9 Long term 4.660 4.170 l 5.130 eBay EBAY 2.875 Aug. 1, ’21 155 –18 n.a. 24.33 0.66 536.38 2.9 Double-A-rated 2.420 2.070 l 2.700 Harley–Davidson Financial Services HOG 2.150 Feb. 26, ’20 84 –18 n.a. … … 636.07 3.3 Triple-B-rated 3.920 3.300 l 4.450 Williams Partners WPZ 4.875 May 15, ’23 540 –17 550 18.45 –3.96 340.28 2.9 High Yield Constrained 8.412 5.868 l 10.099 Merrill Lynch General Motors Financial GM 3.700 Nov. 24, ’20 201 –13 232 … … 288.46 3.3 18.804 10.174 21.753 Triple-C-rated l Genworth Financial GNW 7.625 Sept. 24, ’21 983 –13 1157 2.67 –4.98 2417.66 1.8 High Yield 100 6.863 5.207 l 8.696 312.18 2.7 Global High Yield Constrained 7.999 5.894 l 9.437 …And spreads that widened the most 267.29 1.6 Europe High Yield Constrained 4.958 3.776 l 6.412 Teck Resources TCKBCN 5.400 Feb. 1, ’43 796 67 721 ...... Plains All American Pipeline PAA 4.900 Feb. 15, ’45 395 28 437 21.77 –5.80 1606.87 1.6 U.S Agency Barclays 1.430 1.170 l 1.680 Ensco ESV 4.700 March 15, ’21 1122 24 1119 10.60 1.15 1445.62 1.1 10-20 years 1.230 0.980 l 1.480 Kinder Morgan KMI 3.050 Dec. 1, ’19 270 24 286 18.09 1.92 3170.33 5.4 20-plus years 2.940 2.700 l 3.370 MPLX MPLX 4.875 Dec. 1, ’24 426 24 418 27.81 0.98 1936.43 1.5 Mortgage-Backed Barclays 2.460 2.260 l 2.900 Halliburton HAL 4.850 Nov. 15, ’35 215 23 n.a. 35.22 0.54 1911.78 1.3 2.390 2.180 l 2.860 Ginnie Mae (GNMA) Bank of Nova Scotia* BNS 2.050 June 5, ’19 105 20 104 47.06 –1.67 1133.42 1.6 2.480 2.270 2.910 Fannie mae (FNMA) l Energy Transfer Partners ETP 5.150 Feb. 1, ’43 435 20 461 28.90 –0.45 1744.54 1.7 Freddie Mac (FHLMC) 2.510 2.300 l 2.930 High-yield issues with the biggest price increases… 504.83 1.0 Muni Master Merrill Lynch 1.644 1.440 l 2.099 Bond Price as % of face value Stock Performance 352.79 1.2 1.662 1.398 2.144 7-12 year l Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg 390.44 1.1 12-22 year 2.058 1.898 l 2.636 Crestwood Midstream Partners CMLP 6.250 April 1, ’23 75.000 1.50 74.000 ...... 372.81 1.6 22-plus year 2.722 2.593 l 3.351 Yum! Brands YUM 5.350 Nov. 1, ’43 76.000 1.38 72.250 79.35 –1.49 2294.41 2.5 Yankee Barclays 2.840 2.430 l 3.110 LifePoint Health LPNT 5.875 Dec. 1, ’23 105.812 1.31 105.750 65.60 –1.49 7.000 Dec. 15, ’21 99.875 1.28 n.a. 13.93 6.34 539.62 3.5 Global Government J.P. Morgan 1.170 1.160 l 1.780 KB Home KBH 762.32 0.9 Canada 1.580 1.360 l 1.970 Ensco International ESV 7.200 Nov. 15, ’27 56.000 1.00 55.500 … … 6.500 May 15, ’19 12.000 1.00 10.750 0.47 –7.33 368.58 3.0 EMU 0.882 0.728 l 1.609 Linn Energy LINE 6.375 June 1, ’17 104.875 0.76 104.250 ...... 707.62 3.8 France 0.670 0.490 l 1.360 Health Net HNT Mallinckrodt International Finance S.A. MNK 5.750 Aug. 1, ’22 92.750 0.75 92.250 … … 512.75 3.7 Germany 0.290 0.160 l 1.040 291.94 4.9 Japan 0.190 0.150 l 0.890 …And with the biggest price decreases 563.11 3.7 Netherlands 0.440 0.240 l 1.130 Chesapeake Energy CHK 6.500 Aug. 15, ’17 71.500 –5.50 74.750 4.25 2.91 864.16 4.7 U.K. 1.920 1.760 l 2.480 Freeport–McMoRan FCX 5.450 March 15, ’43 59.000 –4.50 67.500 10.11 3.69 n.a. n.a. n.a. n.a. n.a. Emerging Markets ** Sanchez Energy SN 6.125 Jan. 15, ’23 58.000 –4.00 49.500 5.18 2.98 IPMT 9.500 Dec. 15, ’19 100.000 –3.63 102.250 ...... *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In U.S. - dollar terms Euro-zone bonds Ipayment ** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan United States Steel X 7.000 Feb. 1, ’18 87.688 –3.31 89.250 15.78 6.33 EP Energy EPENEG 9.375 May 1, ’20 51.500 –3.25 45.000 ...... Global Government Bonds: Mapping Yields WPX Energy WPX 8.250 Aug. 1, ’23 78.125 –3.13 80.000 6.48 4.18 10.750 Feb. 15, ’20 95.500 –3.00 97.750 ...... Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in Citgo Holding CITHOL selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. Note: Data are for the most active issue of bonds with maturities of two years or more Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago 0.750 U.S. 2 0.885 s l 0.864 0.766 0.557 1.625 10 1.900 s l 1.878 1.748 1.875 Dividend Changes 5.500 Australia 2 1.975 t l 2.015 1.811 1.791 109.0 115.0 123.4 Amount Payable / Company Symbol Yld % New/Old Frq Record 4.250 10 2.593 t l 2.662 2.407 2.380 78.4 50.6 Dividend announcements from March 24. 69.3 Guggenheim DJIA Dividend DJD 2.8 .1816 Q Mar31 /Mar29 Amount Payable / 4.250 France 2 -0.416 s l -0.428 -0.410 -0.131 -130.1 -129.2 -68.8 Guggenheim EM Real Estate EMRE 0.8 .0415 Q Mar31 /Mar29 Company Symbol Yld % New/Old Frq Record Guggenheim Intl Mlty Ast HGI 3.6 .1263 Q Mar31 /Mar29 0.500 10 0.536 t l 0.552 0.520 0.504 -132.6 -137.1 -136.4 Increased Guggenheim S&P Glbl LVL 4.2 .0926 Q Mar31 /Mar29 Guggenheim S&P Hi Incm GHII 3.2 .1774 Q Mar31 /Mar29 0.500 Germany 2 -0.477 t l -0.448 -0.509 -0.214 -136.2 -131.2 -77.1 Oxford Industries OXM 1.6 .27 /.25 Q Apr29 /Apr15 Guggenheim Shipping SEA 4.2 .1195 Q Mar31 /Mar29 Raytheon RTN 2.4 .7325 /.67 Q May12 /Apr06 0.500 10 0.184 t l 0.195 0.163 0.212 -171.7 -168.3 -166.3 iSh Commodities Sel Strat COMT 0.8 .05999 Q Mar30 /Mar28 Madrona Global Bond FWDB 3.3 .06819 M Mar31 /Mar29 4.500 Italy 2 0.035 s l 0.003 0.081 0.237 -85.0 -86.1 -32.0 Initial Legg Mason Low Vol Hi Div LVHD .10857 Mar31 /Mar29 Reality Shares DIVS ETF DIVY 1.9 .1107 Q Mar31 /Mar29 2.000 10 1.299 s l 1.292 1.533 1.318 -60.1 -58.6 -55.7 TrimTabs Intl Free-Cash FCFI 1.2 .06427 Q Mar31 /Mar29 Funds and investment companies USCF Stock Split Index Fd TOFR 1.8 .06814 Q Mar31 /Mar29 0.100 Japan 2 -0.218 s l -0.224 -0.209 0.024 -108.8 -53.3 -110.3 AdvisorSh Athena High Div DIVI 5.2 .069 M Mar31 /Mar29 WCM BNYM FcsdGro ADS AADR 0.3 .02428 Q Mar31 /Mar29 0.100 10 -0.090 s l -0.105 -0.049 0.310 -199.0 -198.3 -156.5 AdvisorSh Pac Asst Enh FR FLRT 3.3 .13105 M Mar31 /Mar29 Wilshire US REIT WREI 3.7 .4289 Q Mar31 /Mar29 AdvisorShares Gl Echo GIVE 0.4 .06104 Q Mar31 /Mar29 4.500 Spain 2 0.026 s l 0.011 0.042 0.179 -85.9 -85.4 -37.8 AdvisorShares Newfleet MINC 3.0 .12165 M Mar31 /Mar29 Foreign 2.150 10 1.450 t l 1.459 1.628 1.287 -45.0 -41.9 -58.8 AdvisorShares Sage Core HOLD 1.0 .08526 M Mar31 /Mar29 Concordia Healthcare CXRX 1.1 .075 Q Apr29 /Apr15 AdvisorShs Peritus Hi Yd HYLD 7.2 .18933 M Mar31 /Mar29 Diana Ship 8.875 Pfd B DSXpB 19.2 .55469 Q Apr15 /Apr14 1.250 U.K. 2 0.486 s l 0.465 0.326 0.522 -39.9 -40.0 -3.5 AS Mkt Adaptive Uncon MAUI 0.7 .15439 A Mar31 /Mar29 Santander Fin pfd. Sec. SANpC 6.2 .40625 Q May03 /Apr18 2.000 10 1.457 s l 1.452 1.363 1.529 -44.3 -42.6 -34.6 Credit Suisse Income Fnd CIK 9.6 .022 M Apr15 /Apr11 Gug Multi Ast Inco CVY 4.9 .2211 Q Mar31 /Mar29 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA: Source: Tullett Prebon Guggenheim Cdn Engy Incm ENY 2.5 .0477 Q Mar31 /Mar29 semiannual; S2:1: stock split and ratio; SO: spin-off. 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

MORGENSTERN ON FILM

Superhero Letdown D3 PLUS The priceARENA of messing with Loretta Lynn’s man D5

Putting the Band Back Together

BY NEIL SHAH

WHEN GUNS N’ ROSES SINGER AXL ROSE and guitarist Duff Slash reunite on stage next month after decades of bad McKagan, blood, fans around the world will wonder how long the Slash, Axl dysfunctional duo can keep it together. The return of Guns N’ Rose Roses is the biggest—and most unlikely—rock ’n’ roll reunion of the decade. “With Guns N’ Roses, we’re kind of talking about nuclear fusion here,” says Larry Miller, head of the music-business Reunion tours program at New York University. “It could hang together for a are highly couple dozen dates—or not.” After months of secretive maneuvering by managers and lucrative and promoters, a tour is taking shape, though details are closely increasingly guarded. Arriving at detente was a long, slow process and the stars scarce. had to align: Members of the band went years without speak- Guns N’ Roses ing; a birthday olive branch on Twitter was sent by an inter- mediary; a divorce might have played a role. could be the A Guns N’ Roses reunion is “one of those things the audi- biggest in years. ence was told they would never get,” says Peter Katsis, who briefly managed the breakaway band Mr. Rose has fronted in recent years. The Los Angeles rock group is booked for two nights at the Coachella Valley Music and Arts Festival on April 16 and April 23, after two gigs at T-Mobile Arena in Las Vegas on April 8-9. Demand for tickets is intense. On VividSeats.com, a ticket-selling site, a general-admission floor ticket for the April 8 show can cost $2,400. A fancier “suite” ticket? More than $15,000. Long a global favorite, the band is also playing two dates next month in Mexico City at Foro Sol, a 60,000-capacity stadium. As promoters chase reunion tours to stand out in a crowded market for live music, Guns N’ Roses has been something of a Great White Whale. Big artists now earn much of their income from touring, which keeps them on the road and creates an oversupply of concerts. A reunion is a unique event with built-in marketing buzz. The coming Guns N’ Roses shows are the most notable attempt to resurrect a rock touring juggernaut since the Police, which grossed more than $300 million when they reunited a decade ago. Longtime manager and executive Irving Azoff has put the Eagles’ tour grosses after their 1994 reunion at about $1 billion, not including merchandise. But few big rock acts remain who haven’t reconvened Pleaseturntothenextpage

PHOTO ILLUSTRATION BY JOHN KUCZALA, ROSS HALFIN/IDOLS (PHOTO); WARNER BROS. PICTURES (FILM); BELOW: FINN BEALES A GRUELING PART TAKES ITS TOLL

BY EBEN SHAPIRO Dwan performs “Not I” as part of a trilogy of short plays—the others are “Footfalls” and “Rockaby”— by Beckett, the Irish writer who won the Nobel SPORTS FANS ARE ACCUSTOMED to the farewell Prizein1969. tour when a revered but ailing athlete dons his uni- But the play’s physical and emotional demands form one last time to much acclaim. have finally caught up with her. Each show brings The theater world is experiencing a similar phe- her to the “brink of anxiety, distress and trauma,” nomenon as Lisa Dwan, one of the foremost inter- she says. “It takes a massive toll.” preters of Samuel Beckett, is retiring her signature There also is the psychological strain from a monologue, “Not I,” after a final series of perfor- monologue that a critic for the Guardian labeled an mances in the U.S. over the next month. “existentially terrifying babble, hinting at deep Since 2005, the 38-year-old Irish actress has trauma and extinction of self.” toured the world, performing the piece hundreds of “Not I” presents “probably the most difficult times to sellout crowds and over-the-top reviews. and challenging part for an actress,” says Walter D. (In The Wall Street Journal, Paul Levy called it “one Asmus, a director who specializes in Beckett and of the theatrical experiences of a lifetime.”) Ms. PleaseturntopageD6 The actress Lisa Dwan trussed in place to perform Beckett’s ‘Not I.’ 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 | Friday, March 25, 2016 THE WALL STREET JOURNAL. ARTS & ENTERTAINMENT

SEPARATE WAYS Duff GUNS N’ ROSES McKagan, left, filling in with Axl Rose in Mr. Rose’s version of Guns N’ Roses in Continuedfromthepriorpage 2014; below, Slash plays already, or have a quorum of sur- with his band last year. viving members. It’s the end of an era, says Todd Kerns, bassist for Slash’s solo band. “This is the Last of the Mohicans.” Only Led Zeppe- lin, which broke up in 1980 and whose members have worked together occasionally but never toured, sets off similar yearnings in hard-rock circles. It will be the first time Mr. Rose, Slash and bassist Duff McKagan have shared a stage in more than 20 years. Co-founder Izzy Stradlin, a childhood friend of Mr. Rose’s, has said he won’t appear for these early dates, but he could join up later. With or without him, an announcement of a full-blown road trip is expected soon. For music festivals, it’s getting harder to produce headliners with a “wow” factor. Tommy Stinson, the bassist for the Replacements, says festivals repeatedly urged his

group to re-form. The alternative- FROM TOP: FRAZER HARRISON/GETTY IMAGES; KEN HOWARD/DEMOTIX/CORBIS rock pioneers, known by their fans as “the ‘Mats,” broke up in 1991, parted ways in the mid-1990s amid erberg had both ended relationships and began touring again in 2013. resentments over Mr. Rose’s control when they reunited in 2013, accord- “It definitely started from the of the band’s name, which Slash ing to Bob Mehr’s new book, “Trou- prompting of promoters,” Mr. Stin- and Mr. McKagan have claimed Mr. ble Boys.”) Mr. Rose’s representa- son says. We weren’t “sitting Rose pressured them to give up. tive wouldn’t comment. Slash’s around going, ‘God, I wish we “A permanent shift in the mood manager didn’t return phone calls. could do a ‘Mats reunion!’ ” (Mr. of the band came at the first men- Perla Ferrar declined to comment. Stinson also played bass in Mr. tion of the contracts and the own- Rumors of a Guns N’ Roses re- Rose’s version of Guns N’ Roses ership of the band name, all of union spread. A Billboard article in until last year.) which first happened when Steven late December suggested a possi- Some touted reunions hardly [Adler] was kicked out” in 1990, ble full-scale tour. In January, the qualify as reunions. This year, Slash (given name Saul Hudson) re- band’s publicist confirmed what Coachella has booked LCD Sound- counts in his 2007 autobiography. had become an open secret: Mr. system, an electronic-dance-punk A few years later Mr. Rose sought Rose, Slash and Mr. McKagan were act that folded only five years ago. the right to start a new band called reuniting—but it remained unclear Alan Niven, who managed Guns Guns N’ Roses, he says. whether Mr. Stradlin or Mr. Adler N’ Roses until Mr. Rose fired him In a December 2008 post on a were involved. Last month, Mr. in 1991, says he be- fan website, Mr. Stradlin—who has avoided the lieves concert pro- Rose says that when press for years—opened a Twitter moter Anschutz En- the band was rene- account to say he wouldn’t be in- tertainment Group ‘We hugged,’ gotiating its contract volved in the April shows “at this is paying Guns N’ bassist Duff with its record com- point in time.” Roses an impressive McKagan wrote. pany in 1991 he “had Speculation about Mr. Stradlin $26 million for its the bit about the is rife among fans. Reuniting four U.S. shows. ‘Thirteen years name added in as groups sometimes don’t agree on Representatives for is a long time protection for my- how to divvy up the spoils, Mr. Guns N’ Roses and self…as our then- Katsis says. Even if Guns N’ Roses AEG, which owns not to talk.’ manager was always made an offer to Mr. Stradlin, it’s Coachella, declined tryin’ to convince possible that once Mr. Rose, Slash to comment. someone they should and Mr. McKagan took their slices More rebellious fire me.” Mr. Rose of the pie, Mr. Stradlin’s piece was than their hair-band insists “everyone had too small. “Axl’s been carrying the contemporaries, agreed to [the name] torch,” he says. “It’s a business ne- Guns N’ Roses injected realism and being mine should we break up.” gotiation between who’s been car- spontaneity into rock in the 1980s, Everyone involved has a differ- rying the business and who’s just earning comparisons to the Rolling ent perspective. “They all have se- coming back.” Mr. Stradlin wasn’t Stones and the Sex Pistols. The lective amnesia,” says Doc available to comment. hard-rock group’s 1987 album, McGhee, who manages Kiss and Guns N’ Roses could collapse “Appetite for Destruction,” is the briefly managed Mr. Rose’s version again. While Mr. Rose is more best-selling debut in U.S. history, of Guns N’ Roses. years is a long time not to talk.” started licensing Guns N’ Roses mu- punctual nowadays, local authori- with more than 18 million copies The infighting meant Guns N’ Manager after manager popped sic for movies again, says Marc Can- ties at Coachella levy strict fines if sold, according to the Recording Roses—Mr. Rose, Slash and Mr. the reunion question. In one 3 a.m. ter, owner of a famous Los Angeles a band violates curfew. Guns N’ Industry Association of America. McKagan were its remaining conversation while managing Mr. deli, childhood friend of Slash’s and Roses has sold some 100 million One single, “Sweet Child O’ Mine,” shareholders—missed out on busi- Rose on tour, Mr. Katsis recalls: author of a book about the band’s records, but winning over has been played on Spotify more ness opportunities. For years, band “He told me he wasn’t opposed to Sunset Strip early days, “Reckless Coachella’s crowd isn’t easy: Older times than Michael Jackson’s products such as concert DVDs doing it at some point, and that he Road.” Mr. Rose released a concert rock like Guns N’ Roses isn’t the “Thriller.” and other merchandise couldn’t be had no real issues with Slash.” But DVD that required Slash’s signoff, main attraction for younger festi- The flameout came quickly. released under the band’s name he still wasn’t ready. and Slash later released one of his valgoers, who favor dance-pop, Drummer Steven Adler was fired by because they required Mr. Rose’s Mr. Rose parted ways with Mr. own. “That was a sign of some kind electronic music and hip-hop. the band for drug use in 1990. “Use and Slash’s signoffs and the two Katsis in late 2011, leaving the of truce,” Mr. Canter says. On Thursday, the Guns N’ Roses Your Illusion,” the group’s two-and- couldn’t agree, associates say. handling of Guns N’ Roses to Beta On July 24, 2015, Del James, a rumor mill remained in overdrive. a-half-hour-long double-release fol- “One of the two of us will die Lebeis, Mr. Rose’s personal assis- writer and close ally of Mr. Rose’s, Fans speculated Mr. Rose could be low-up, was ambitious, but criti- before a reunion,” Mr. Rose told tant and confidante, and her son, wished Slash a (belated) happy one of the guest singers to replace cized by some as overindulgent. Mr. Billboard in 2009. For 15 years, he Fernando; they were aided by Mr. birthday via Twitter—something un- ailing singer Brian Johnson on a Rose’s controversial lyrics and late- toured as the only original member Rose’s business manager, booking thinkable unless Slash and Mr. Rose slew of AC/DC concert dates. Any ness to shows made him a business of Guns N’ Roses, releasing one al- agent and lawyer. were reconciled, Mr. Canter says. participation by Mr. Rose likely liability. At a show near St. Louis, bum, the long-gestating “Chinese When Mr. Stinson, Mr. Rose’s Then came the big news: In an wouldn’t interfere with Guns N’ he leapt into the crowd to try to Democracy,” in 2008 and contem- bassist, couldn’t play some gigs in interview with a Swedish outlet in Roses’s touring plans. confiscate a fan’s camera, then left plating another album. He wanted 2014 due to Replacements engage- August, Slash said he and Mr. Rose The last time Mr. Rose, Slash the stage, at which point a riot to prove he could write, Mr. ments, Mr. McKagan filled in. Duff had buried the hatchet. and Mr. McKagan performed to- broke out, injuring dozens. In late McGhee says, and saw his Guns N’ played a role in easing tensions Several people familiar with the gether was in Buenos Aires on July 1991, rhythm guitarist Mr. Strad- Roses as a way to demonstrate his between Mr. Rose and Slash, sev- band say Slash’s recent separation 17, 1993—the group’s final stop on lin—considered the band’s linchpin contributions to the original band. eral people say. “Duff has always from his wife, Perla, may have been their 2½-year, 194-show “Use Your due to his songwriting—quit, fed up In October 2010 Mr. McKagan been Switzerland,” says Mr. Kerns, a factor in Mr. Rose’s changed atti- Illusion” tour. with Mr. Rose’s antics and the and Mr. Rose ran into each other in Slash’s bassist. tude. That’s not uncommon: Di- “I look back at it now and go, band’s substance-abuse issues. a London hotel and rekindled their Over the past few years, the vorces often act as a catalyst for re- ‘My God’—so much wasted time,” After a period of inactivity, Mr. friendship. “We hugged,” Mr. McK- Rose and Slash camps gradually unions, observers say. (Mr. Stinson Mr. Niven, the former manager, Rose, Slash and Mr. McKagan agan writes in a memoir. “Thirteen started cooperating. First, they and Replacements leader Paul West- says. “Their prime was lost.”

BURYING THE HATCHET There have been semi-reunions before, and N.W.A. is being inducted into the Rock and Roll Hall of Fame in early April. Last year’s biopic “Straight Big Reunions Outta Compton” reminded people just how forward-thinking N.W.A.’s gangsta rap was and how We’d Like to timely it is now. If N.W.A. embarked on a tour, they’d be playing for much bigger—and broader— See Happen audiences than in their late 1980s heyday. Almost all the big groups have reunited by now, 3. Crosby, Stills, Nash & Young but a few unconsummated get-togethers remain. “I don’t want anything to do with [David] Crosby at 5 1 Here’s a selection of some of the most yearned- all. It’s just that simple,” Graham Nash told Billboard for reunion tours, with apologies to the Talking magazine earlier this month. So don’t ex- Heads, R.E.M., Uncle Tupelo and other favorite de- pect a CSNY rapprochement soon. Crosby, funct bands omitted. Stills and Nash have gotten together over the years; Neil Young has only joined them 1. Led Zeppelin once since 2007, for his annual charity ben- A Led Zep reunion would be huge, a stadium-sized efit. “After being totally immersed in me extravaganza. In some respects, it has already hap- and David and Stephen and Neil’s music, pened, in bits and pieces. Singer Robert Plant, gui- I’m done…I’ve had 10 years of it,” Mr. Nash tar hero Jimmy Page and bassist John Paul Jones says. “Leave me the f--- alone. I need to have reconvened several times for one-off concerts concentrate on me now.” since their 1980 breakup, which followed drummer John Bonham’s death. A December 2007 reunion 4. The Smiths show in London stoked speculation about a tour, The Smiths are the least likely of the 3 2 but nothing materialized. Messrs. Page and Plant pined-for reunions, given singer Morrissey’s have worked together—even made albums—but Mr. lack of interest in revisiting the past and a Plant is reticent about a reunion. “I’m not part of a rupture between Morrissey and drummer Mike Waters “have outgrown each other.” Last jukebox,” he told Rolling Stone in 2014. Joyce. Tidy sums have been offered to the band, year, Mr. Gilmour released a new album, which broke up in 1987. The influential U.K. group’s “Rattle That Lock,” and he’s touring at 2. N.W.A. fan base is among the most fervent. If Axl Rose the moment. With Mr. Gilmour busy and Groundbreaking rap group N.W.A. is probably the can finally find a way to get along with Slash, Mr. Waters also consistently touring and most likely supergroup reunion. Ice Cube has a shouldn’t Morrissey at least try, too? recording, there’s no real shortage of high-profile slot at next month’s Coachella festival Pink Floyd-ness out there. But the and has hinted at the possibility by noting that 5. Pink Floyd chance of a “Pink Floyd” tour would still it’s the same night that Guns N’ Roses is set to Guitarist David Gilmour just isn’t interested in make many live-music executives sali- play. Other N.W.A. members, including Dr. Dre, working with Roger Waters. “Impossible,” he told vate, given the group’s stadium status. 4

could show up. (Ringleader Eazy-E died in 1995.) the Telegraph in September, saying he and Mr. Can you say “Money”? GETTY IMAGES (4); HOWARD TYLER/PHOTOSHOT/EVERETT COLLECTION (N.W.A.) 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 Friday, March 25, 2016 | D3 MORGENSTERN ON FILM

REVIEW JOE MORGENSTERN Ben Affleck and Henry Cavill A DARK FORCE has been unleashed in a new cinematic universe—an enemy of levity, a besieger of vulnerable psyches, a merciless wielder of advance technologies against which ordinary humans sit defenseless. And Zack Snyder is only the director of “Batman v Superman: Dawn of Justice.” The other two guys are really downers. This underdeveloped, overlong and stupen- dously dispiriting duel of unlikely antagonists is the first in a projected series of interconnected films based on DC Comics characters. Ben Affleck plays Bruce Wayne/Batman—he’s impressive, within the script’s limits, even though Christian Bale’s Caped Crusader in the Christopher Nolan trilogy was a formidable act to follow. The Clark Kent/Superman role is reprised by Henry Cavill, who is just as inex- pressive as he was almost three years ago in the superviolent, ultraturgid “Man of Steel,” which was also directed by Mr. Snyder. The ending of that film and the beginning of the new one overlap. Gotham is again under attack from the cosmically evil General Zod, and Superman, in fighting him, causes vast collat- eral damage—to the city, and to Bruce Wayne’s enterprises and employees. That provides the pretext for the conflict between two mythical figures. For Bruce, “Batman v Superman” becomes a tale of re- venge. For Mr. Snyder and his writers, Chris Terrio and David S. Goyer, it’s a would-be dissertation on the nature of heroism—“The Incredibles” without the fun—and on two deeply flawed superheroes. Would-be as opposed to what is, because spasms of highfa- lutin philosophy, and howlingly pretentious dream sequences, serve only as the thinnest of veneers for incessant action in one of the most assaultive movies ever made. (I saw it on a big IMAX screen—there are not-so-big IMAX screens these days—that upped the ‘Batman v Superman’ assaults into virtual felonies.) In the philosophical scheme of things, Su- perman is seen as a good guy in a time of terror—a suicide bombing links the movie’s sci-fi fantasy to current reality—but also a loose cannon, a unilateral interventionist v Entertainment and, when public opinion turns against him, an illegal immigrant. (Who knew that extra- planetary visitors needed green cards?) Bat- man, by contrast, turns into a brutal vigilante who brands his victims with a bat sign. (He’s an aging vigilante, as we’re meant to trary notion for a big-budget extravaganza was Larry Fong), and everything sounds the more embarrassing than funny. (Oh, for the see when he takes on younger adversaries in that contains trailers—disguised as disjointed same, thanks entirely to a pitiless score, by days of Gene Hackman’s exuberant evil.) a labored ballet of martial arts set in Africa.) action sequences—for sequels to come. Hans Zimmer and Junkie XL, that suggests Honor bound as I am to avoid spoilers, I Yet the contrasts are blurred by the Among the characters who surface is Diana platoons of percussionists high on magic can tell you without fear of divulging too movie’s penchant for equal-opportunity pessi- Prince/Wonder Woman, played unwonderfully mushrooms. The climactic battle between much that there’s a product placement to- mism—“We’re all criminals,” says Batman; by the Israeli actress Gal Gadot. you-know-who is a slugfest, as inelegant as it ward the end for Turkish Airlines—an odd if “No one stays good in this world,” says Su- The action gets blurry too, not from a def- is extended. Amy Adams is back as Lois Lane, not unseemly aberration in a production perman. (These are indeed dark times, but so icit of energy—Mr. Snyder, a merchant of though she doesn’t have much to do. Jesse that supposedly cost a quarter billion dol- was the Great Depression, and Hollywood in bleakness, is also a maestro of high-tech ki- Eisenberg has lots to do as the villainous Lex lars—and that a crucial, and preposterous, the 1930s gave us Ginger Rogers and Fred netics—but from a lack of variety. After a Luthor. This time Lex is conceived as a de- plot point turns on mother love. Astaire along with violent mobsters.) And the while everything looks the same, thanks in mented version of the Internet icon Mark conflict between them, far from seeming inev- large part to the ugly blue-and-teal palette Zuckerberg, whom Mr. Eisenberg played in Email Joe at [email protected] and itable, feels exactly like what it is, an arbi- the filmmaker favors (the cinematographer “The Social Network,” but the dementia is follow him on Twitter: @JoeMorgenstern.

clared him the fastest pitcher ever. Bob Feller threw a ball faster than a Andrew cop on a motorcycle in 1939; his speed ‘Born to Be Blue’ McCutchen was judged, approximately, to be over 100 mph; a later test with more accu- “Born to Be Blue” calls itself a when the subject is passive more rate equipment put it at 98.6 mph. reimagining of Chet Baker’s often than not. Yet Mr. Hawke With the advent of radar guns in the comeback in the late 1960s, as finds energy in Baker’s passivity, 1970s, established speeds climbed both a trumpeter and a singer emotional variety in his chronic steadily toward 100 mph and slightly with a druggie, epicene voice that neediness. Here’s a haunting por- beyond. Given that a 100 mph pitch found him a new audience. It’s trait of a narcissist, childish and reaches the plate in 396 milliseconds, woefully vulnerable, faster than the blink of an eye, it’s re- who is also a distinc- markable that a batter can hit one, tive musician and, in but “Fastball” abounds with vivid de- the face of his addic- scriptions of what it’s like to try. (Ac- tion, a fiercely deter- cording to Ty Cobb, Johnson’s fastball mined one. (Carmen hissed as it came by like a big train.) Ejogo is lovely as the As if all of that isn’t interesting woman he adores, in enough to baseball fans, “Fastball” en- his fashion.) lists the services of a physicist to illu- The narrative fo- minate what happens in the course of cuses on Baker’s pain- a pitch, and exactly how fast it hap- ful recovery after a pened in the past. This leads to up- notoriously savage ward adjustments of earlier stats that beating—the result of represented the speed of the ball at or an unpaid drug debt— adds individual interviews with fellow near home plate, rather than at what Ethan in which he lost his ‘Fastball’ luminaries like Hank Aaron and Derek has become the standard measure- Hawke teeth, and with them Jeter, and with such legendary pitchers ment of 50 feet from the plate. Thus the embouchure “Fastball,” a fascinating and down- as Goose Gossage (“I loved being a Bob Feller’s 98.6 mph becomes 107.6 needed to play the right lovable documentary feature by power pitcher—if I could change one mph. And the fastest speed ever? In hard to imagine what kind of trumpet. At that point the film Jonathan Hock, starts with an eternal thing in my whole career I wouldn’t 1974 an infrared device that was a pre- movie it might have been if its becomes “Not So Young Man question. No, not whether Batman or change a single thing”) and the singu- cursor to the radar gun measured one subject hadn’t been played by With a Horn and a Denture”; the Superman would win in a fight—this lar, inexplicable, near-indestructible No- of Mr. Ryan’s pitches at a record-break- Ethan Hawke (who sings very dental problems are painful to week’s failed blockbuster should put lan Ryan. ing 100.8 mph. Adjusted thusly, that nicely in his own voice). watch. Yet you’re moved by Mr. that one to rest—but who in the his- In what has become a data-driven becomes 108.5 mph, a speed as un- Baker was a junkie, and junkie Hawke’s performance, with its tory of major league baseball has game, no data about pitching speeds thinkable as it is unhittable. stories tend to be cut from the echoes of Montgomery Clift’s thrown the fastest fastball. To provide were available until 1912, when investi- “Fastball” is narrated by Kevin same tattered cloth. This one is woundedness, of a man strug- an answer (and yes, a definitive an- gators using a primitive but ingenious Costner, and it’s hard to separate his no exception. Worse still, the gling to stay not just clean but swer is provided) the film starts with a machine clocked Walter “Big Train” voiceherefromwhathesaidandhow writing and direction, by Robert connected to the performing life group of charmingly garrulous hall-of- Johnson at 122 feet per second (or he sounded as the catcher Crash Da- Budreau, range from pedestrian he loves. At least Baker succeeds famers, including Johnny Bench, Al Ka- 83.2 miles per hour, a unit of speed vis in “Bull Durham,” the best baseball to lethargic—not a good thing musically.

line, Tony Gwynn and Joe Morgan; that wasn’t used at the time) and de- movie ever. Why try, though? CLOCKWISE FROM TOP: WARNER BROS. PICTURES; IFC FILMS; GRAVITAS VENTURES

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OPENING BASKIN both sides of the baseball movie, but and girl (Julie camera to impressive right up there in the Delpy) meet by MY GOLDEN DAYS FRI-TUE: 11:05am, 1:35pm, 4:15, 7:00, 9:40pm effect in “The Town,” pantheon, and the chance on a train in THE BIRTH OF SAKE a dramatic thriller that subtext is statistics—a Europe in this early FRI-TUE: 10:30am, 5:25pm fulfills its considerable scientific approach to feature by Richard THE PREPPIE CONNECTION ambitions. As the di- the major-league ver- Linklater. They talk FRI-TUE: 9:50pm

rector, he showcases sion of the game. a lot, get off the FRI-TUE: 12:20, 2:10, 4:00, 6:05, 8:10, 10:10pm fine performances. As Brad Pitt is Billy train in Vienna, fall CITY OF GOLD the star, he gives one Beane, the general in love and continue CEMETERY OF SPLENDOR of them. The town of the title is Charles- manager who, in 2002, guided the Oak- to talk until dawn. The movie is mean- FRI-TUE: 2:45pm FRI-TUE: 10:35am*, 7:40pm† town, a blue-collar Boston neighborhood land Athletics, a small-market, under- dering, though quietly enchanting. (The MUSTANG *NO 10:35am FRI, TUE †NO 7:40pm MON that’s described as having spawned more funded team, to an unprecedented 20 con- couple meet again nine years later in ENDS SUN FIELD OF VISION FRI-SUN: 12:30pm robbers of banks and armored trucks than secutive wins. Bennett Miller directed “Before Sunset,” which has fewer lively WAVERLY MIDNIGHTS EL TOPO JURASSIC PARK THE HOLY MOUNTAIN any other place in the nation. Mr. Affleck’s from an adaptation of the Michael Lewis moments, and more fatuous talking FRI-SAT 11:45pm 11:55pm 12:00am Doug MacRay robs banks. book by Steven Zaillian and Aaron Sorkin. about love, sex and married life.)