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Vital Signs

Gasoline prices are nearthe past year’s low. Regulargas in the U.S. cost an aver-age $3.257 a gallon thisweek, up from the 2012 lowof $3.254 set a week ago.Prices have fallen 62 centssince mid-September, re-flecting lower demand andrising supplies as the Atlan-tic hurricane season faded.The drop meant that con-sumers had more cash tospend elsewhere.

Weekly retail gasoline prices,per gallon

Source: Energy InformationAdministration

20123.00

3.20

3.40

3.60

$3.80

>

Toyota agreed to payabout $1.1 billion to in-

stall new safety equipmentand reimburse owners of asmany as 16 million cars tosettle a U.S. class-action suitinvolving complaints of un-intended acceleration. A1 The auto maker projectedthat its sales would rise 2% toa record in 2013 and it appearson pace to reclaim the topglobal sales spot this year. B2n A jury found that chip-maker Marvell should paynearly $1.17 billion for in-fringing patents held by Car-negie Mellon University. B1n Home prices are on trackto notch their first yearlygain since 2006, the mar-ket’s strongest performancesince the housing bust. A1n The rising cost of rentingis putting pressure on ten-ants at a time when manyare still grappling with slowor falling income growth. A2n Stocks declined amidsluggish holiday-sales re-ports, with the Dow industri-als losing 24.49 points, or0.2%, to close at 13114.59. C4n Several CFTC staffershave left for the private sec-tor in recent months, bringingwith them coveted expertisein Dodd-Frank rules. C1nAs they enter 2013, Best Buy,Penney, RadioShack and Searsmust correct missteps as theyaim to compete in an ever-tougher retail environment. B1nNetflix’s service outage iscausing some companies torethink their reliance on Am-azon for the bulk of theirWeb-computing needs. B3n The yen slid to a 27-monthlow against the dollar as Jap-anese officials signaled theywould push ahead with effortsto weaken their currency. C4nNokia’s new Lumia phonesare being offered at postholidaydiscounts, or even free withcontracts, at some U.S. carri-ers and through Amazon. B3n China’s bond business isbooming, fueled by expecta-tions of government supportin the face of concerns aboutissuers’ credit-worthiness. C1n ConocoPhillips is joiningthe search for shale gas inChina under an agreementthat the company reachedwith Sinopec last week. B4nHawker Beechcraft, whichplans to exit bankruptcy underthe control of a group of hedgefunds, is jettisoning two un-derfunded pension plans. B2n TD Ameritrade, one of thebiggest investors in KnightCapital, pledged its supportfor the brokerage firm’s ac-quisition by rival Getco. C3n U.S. prosecutors accuseda former research analyst ofgiving confidential tips aheadof an IBM deal in 2009. C3n FreshDirect’s websitewas unavailable for much ofTuesday and Wednesday be-cause the firm had failed torenew its Web address. B1

n Leaders are running out oftime as the fiscal cliff looms.The White House and con-gressional leaders haveshown no signs of progresson an agreement to avoidyear-end tax increases andspending cuts. Obama andSenate leaders return towork today, with little timeto craft a deal. The TreasuryDepartment said the govern-ment would hit its legal bor-rowing limit by Monday. A4The Treasury’s Geithnersaid it wasn’t possible toknow if the 2012 tax filingseason would be delayed.n Russia’s parliament ap-proved a ban on adoptionsof Russian children by Amer-icans, retaliating for a U.S.law on human rights. Putincould decide whether to signit as early as this week. A7n Libyan authorities plan aspecialized diplomatic secu-rity unit, after criticism ofthe Benghazi response. A7n A top Syrian official wentto Moscow to discuss peaceproposals to resolve Syria’scivil war. Syrian rebels con-tinue to make gains. A7n Japan’s Shinzo Abe tookover as prime minister, ush-ering in a government vow-ing to fix the economy andimprove foreign policy. A8nA storm system approachedthe Northeast after unleash-ing tornadoes and snow inthe South and Midwest. Atleast six people have died.A5n Egypt’s parliament metfor the first time since a newconstitution was passed. Itwas asked to focus on elec-tion rules, regulating mediaand fighting corruption. A9nHawaii Lt. Gov. BrianSchatz,a Democrat, was named bythe state’s governor to fill theSenate seat left vacant bythe death of Daniel Inouye. A5n Bangkok jailed a stock-brokerage executive for com-menting in 2009 about thehealth of Thailand’s king. A8nMyanmar’s presidenttook a rare public swipe athis government, targetingcorruption and bribery. A8n George H.W. Bush was inintensive care at a Houstonhospital after the ex-presi-dent suffered a “series ofsetbacks,” including fever. A5n Rich Chinese are increas-ingly sitting in the nation’spolitical and state bodies. TheCommunist Party Congressincluded 160 of the country’s1,024 richest people. A1n A Colorado county re-jected the state’s new mari-juana-legalization law. A5n A surgical technique atWalter Reed and other hos-pitals shows promise in re-storing peripheral nervesthat are damaged in crashes,tool mishaps and combat. A3n Venezuela’s Chávez, un-der cancer care in Cuba, del-egated administrative tasksto his vice president. A9

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What’s News–i i i i i i

When the Communist Party elite gathered lastmonth to anoint China’s new leaders, seven of thenation’s richest people occupied coveted seats inBeijing’s Great Hall of the People.

Wang Jianlin of Dalian Wanda Group, worth anestimated $10.3 billion and the recent buyer of U.S.cinema chain AMC Entertainment Holdings, tookone of the chairs. So did Liang Wengen, with an es-timated fortune of $7.3 billion, whose construc-tion-equipment maker Sany Heavy Industry Co.competes with Caterpillar Inc. Zhou Haijiang, aclothing mogul with an estimated $1.3 billion fam-ily fortune, also had a seat. As members of theCommunist Party Congress, all three had helpedendorse the new leadership.

For years the Communist Party in China filledkey political and state bodies with loyal servants:proletarian workers, pliant scholars and military

officers. Now the door is wide open to anothergroup: millionaires and billionaires.

An analysis by The Wall Street Journal, usingdata from Shanghai research firm Hurun Report,identified 160 of China’s 1,024 richest people, witha collective family net worth of $221 billion, whowere seated in the Communist Party Congress, thelegislature and a prominent advisory group calledthe Chinese People’s Political Consultative Confer-ence.

China’s legislature, called the National People’sCongress, may boast more very rich members thanany other such body on earth. Seventy-five peoplewith seats on the 3,000 member congress appearon Hurun Report’s 2012 list of the richest 1,024,which Hurun says it calculates using public disclo-sures and estimates of asset values. The averagenet worth of those 75 people is more than $1 bil-lion.

By comparison, the collective wealth of all 535members of the U.S. Congress was between $1.8

PleaseturntopageA10

Home prices are on track tonotch their first yearly gainsince 2006, the strongest per-formance since the housing bustand a development that couldaccelerate the real-estate re-bound even as the broader econ-omy stutters.

The housing market’s revivalhas had several false dawns inrecent years, but a recovery thatbegan in the spring has strength-ened throughout the summerand fall. The latest confirmationcame on Wednesday, when theStandard & Poor’s/Case-Shiller20-city index showed that prices

rose by 4.3% from a year ago inOctober. Since January, pricesare up 6.9% so far this year, thelargest year-to-date gain since2005. A separate index releasedWednesday by Lender ProcessingServices Inc. showed that na-tional home prices were up by5.2% this year through October.

“The tide has changed,” saidIvy Zelman, chief executive of re-search firm Zelman & Associates.“People feel it’s OK to go backinto residential real estate—it’sno longer taboo—and thatchange in sentiment could have avery powerful effect.”

Prices have risen this yearamid stronger demand and sharp

declines in the number of homesfor sale. Banks slowed downforeclosures after abuses in pro-cessing paperwork surfaced twoyears ago. Since then, bankshave become more aggressive atmodifying loans or approvingshort sales, where the home issold for less than the amountowed. The decline in new fore-closures has reduced the numberof homes on the market that sellfor large discounts.

Homeowners who normallywould sell their properties have

Pleaseturntothenextpage

BY NICK TIMIRAOS

Home Prices Hit a MilestoneGrowing Demand, Shrinking Supply Buoy Housing Market; ‘Tide Has Changed’

Toyota Motor Corp. agreed topay about $1.1 billion to settle aclass-action lawsuit stemmingfrom complaints of unintendedacceleration in its vehicles thatsoured its reputation for qualityand undermined its sales glob-ally.

The settlement, filed in a fed-eral court in California onWednesday, will result in a $1.1billion pretax charge to earningsthis quarter, Toyota said. Own-ers of some 16 million Toyota,Lexus and Scion vehicles wouldbe eligible for payments andsafety updates that would varydepending on their vehicle andits age.

The settlement includes noadmission of fault or unlawfulconduct by Toyota and allowsthe company to avoid the risksassociated with battling alengthy trial. “One of our over-riding goals has been to vigor-ously defend the safety of ourvehicles, and we believe we havedone that,” said Mike Michels, aToyota spokesman.

The 2009/2010 recalls andpublic scrutiny of accidents in-volving its vehicles—includingcongressional hearings—dentedToyota’s reputation for qualityand undermined its sales. ItsU.S. sales were flat in 2010, ayear in which almost every othermajor auto maker posted gains,and ended its 30-year unbrokenrun of market-share increases inthe U.S.

The settlement is one of thelargest in a lawsuit involving theautomotive industry, said Steve

PleaseturntopageA6

BY MIKE RAMSEY

Toyota in$1.1 BillionGas-PedalSettlement

Moving Up

The Wall Street JournalSource: S&P Dow Jones Indices and Fiserv

20

–20

–10

0

10

%

'10'08'06 '122004

Change from a year earlier inhome prices, from Case-Shiller20-city composite index

% October4.3%

By James T. Areddy in Shanghaiand James V. Grimaldi in Washington

Defying Mao, Rich ChineseCrash the Communist Party

HOLIDAY HAZE: Winter snow hit the South and Midwest before heading northeast. In Carbondale, Ill., a manshoveled; in Connecticut, cars snaked through traffic; and in Collierville, Tenn., eager sledders went for a ride. A5

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Aaron

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Stormy Weather Descends Upon Millions

At Presidential Library,LBJ Gets a Makeover

i i i

Animatronic Figure Loses Cowboy Hat,Boots for Suit and Tie; Folksy Humor

AUSTIN—The Lyndon BainesJohnson Presidential Library re-opened here last weekend after ex-tensive renovations, offeringdownloadable tour apps and an in-teractive exhibit about the deci-sions the president made duringthe Vietnam War.

Yet some visitorswill look for just onething: the talking,gesturing anima-tronic likeness ofthe former presi-dent.

“We do a $10million renovationand all anyone caresabout is the LBJ,” jokes libraryspokeswoman AnneWheeler, add-ing “It’s certainly one of the morememorable exhibits.”

For nearly 15 years, an anima-tronic avatar of the former presi-dent held court at the museum,moving and gesticulating to a re-

cording of Johnson’s folksy yarns.The eerily lifelike and life-size fig-ure wore a cowboy hat, Westernboots and a checked shirt, cor-dially leaning over a ranch fence, alength of coiled rope in hand.

But when the museum, whichattracts an estimated 100,000 visi-tors annually, began planning its

overhaul severalyears ago, museumcurators decided theorchestrator of theGreat Society andthe Master of theSenate needed amakeover, too.

Gone are thecountrified clothesand the ranch fence.

Instead, the 36th president nowwears a charcoal suit and tie, withno hat, and stands before a po-dium.

Some in Austin have decriedthe change of a cherished localicon. “I liked him better at the

PleaseturntopageA6

New LBJ animatron

BY RACHEL EMMA SILVERMAN

Law firm’s big payday............... A6 Toyota to regain sales lead...... B2

Some tenants are feeling thepinch of rising rents................... A2

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