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YELLOW ***** MONDAY, DECEMBER 22, 2014 ~ VOL. CCLXIV NO. 147 WSJ.com HHHH $3.00 Last week: DJIA 17804.80 À 523.97 3.0% NASDAQ 4765.38 À 2.4% NIKKEI 17621.40 À 1.4% STOXX 600 340.30 À 3.0% 10-YR. TREASURY g 22/32 , yield 2.178% OIL $56.52 g $1.29 EURO $1.2229 YEN 119.53 CONTENTS Ahead of the Tape.. C1 Corporate News B2-4,7 Global Finance............ C3 Heard on the Street C6 Law Journal ................ B6 Markets Dashboard C4 Media............................... B5 Moving the Market C2 Opinion.................. A15-17 Sports.............................. B8 U.S. News................. A2-6 Weather Watch ........ B7 World News......... A8-13 s Copyright 2014 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n The killing of two New York police officers has emboldened critics who say a permissive approach to protests against police tactics had made police vulnerable to attack. A1, A6 n The White House is weigh- ing targeting banks and trad- ing firms controlled by North Korea’s leader in response to the alleged Sony hacking. A8 n North Korea said it was launching a “counteraction” against the U.S. “thousands of times greater” than the Sony Pictures cyberattack. A8 n An outside attorney for Sony insisted “The Interview,” the film that sparked the cyber- attack, will be distributed. B5 n Iraqi Kurdish fighters drove Islamic State militants from the center of the northern city of Sinjar, rescuing hundreds of members of the Yazidi sect. A12 n Obama plans to announce a flurry of detainee transfers from Guantanamo Bay in coming weeks as part of his push to close the prison. A4 n Tunisia’s candidate for president with ties to the country’s autocratic past de- clared victory in a runoff that has yet to be called. A12 n San Antonio is moving ahead with annexation plans that would add up to 200,000 people and potentially make it the U.S.’s fifth-largest city. A3 n The U.S. Army is nearing a decision on the fate of the sol- dier held by Afghan insur- gents for nearly five years. A4 n An Australian woman was charged in the deaths of seven of her children and a niece. A11 i i i B uying by money managers trying to match this year’s stock gains helped fuel last week’s rally but has deepened fear of an early 2015 slump. A1 n Ocwen’s chairman will step down as part of a settle- ment between the mortgage- servicing firm and New York’s top financial regulator. C1 n Venezuela has been hard hit by a slide in oil prices, rais- ing concerns about its debt and the health of developing economies world-wide. C1 n Citigroup pushed forward with a series of metal-financ- ing deals in China despite warnings of risks, people fa- miliar with the talks said. C1 n Drug-benefit-manager Ex- press Scripts will make an AbbVie drug the exclusive op- tion for hepatitis C patients. B1 n The U.S. and Cuba will face claims of over $7 billion for na- tionalized assets as part of their move to normalize ties. B1 n An ex-Petrobras official gave prosecutors data that purportedly show the board was told of an alleged bribery scheme as early as 2009. B4 n Xiaomi’s latest round of financing values the Chinese smartphone maker at more than $45 billion. B3 n Nissan plans to increase out- put in Japan and boost exports next year, its CEO said. B4 n Dish Networks has stopped carrying two Fox channels amid a contract dispute. B5 n “The Hobbit” opened in first place at the box office, bringing in $56.2 million. B5 Business & Finance The elastic U.S. stock market keeps snapping back, but last week’s surge is deepening con- cerns about a possible stock- price stumble in early 2015. A burst of buying by mutual- fund managers and other inves- tors who are trying to catch up with the overall stock market’s climb this year helped spark a 736-point jump by the Dow Jones Industrial Average from Wednesday through Friday. Three straight days of gains left the blue chip stock index at 17804.80, or less than 1% below its record of 17958.79 reached Dec. 5. The surge came right af- ter an 890-point slide that in- cluded declines in six out of seven trading days. Fuel for last week’s stock- market gains came from investor confidence that the U.S. eco- nomic recovery is for real, infla- tion will stay low and interest- rate increases expected from the Federal Reserve next year won’t end the bull market. Another source of upward momentum for stocks is causing jitters, though. Many money managers whose recent perfor- mance lags behind the overall market are hoping for a last- minute boost from pumping cash into especially fast-rising stocks, investment strategists say. Those managers are desperate to boost their performance so they won’t look bad compared with the index they are tracked against, usually the S&P 500. “If you are among the 85% of money managers behind the S&P 500, this is a chance to catch up,” Please turn to page A12 BY E.S. BROWNING Lagging Funds Fuel 2015 Worries The assassination of two New York City police officers this weekend has emboldened police and their supporters to lash out at weeks of nationwide protest and criticism that they say have left officers more vulnerable. Police are investigating social- media posts by Ismaaiyl Brinsley, the apparent assailant in the point-blank fatal shootings Sat- urday of the two officers who were sitting in their patrol car in Brooklyn. In them, he allegedly talked about killing officers in retaliation for the deaths of Eric Garner on Staten Island, N.Y., and Michael Brown in Ferguson, Mo., this summer during confronta- tions with police. Experts on law enforcement said the demonstrations that fol- lowed grand jury decisions not to charge the officers in those cases have strained police mo- rale nationwide, as officers have been forced to defend their tac- tics, then deploy in big numbers to protests against those tactics. “This senseless murder of two of New York’s finest further ex- emplifies the dangerous political climate in which all members of law enforcement, nationwide, now find themselves,” Baltimore police union President Gene Ryan said in a posting on the Baltimore Fraternal Order of Po- lice website. “Not since the political unrest of the 1960s have police officers been so targeted,” he said. On Sunday, a somber-faced New York Mayor Bill de Blasio, who has come under withering criticism from the city’s police union, which contends he has un- dermined officers, attended Mass at St. Patrick’s Cathedral in Man- hattan, flanked in a pew by his wife and Police Commissioner William Bratton. “We are in solidarity with you,” New York Cardinal Timothy Dolan told the public officials. Protest leaders have con- demned the killing of the two of- ficers. The protest movement Please turn to page A6 BY HEATHER HADDON Killings of New York Officers Spark Backlash to Protests In early October, Saudi Ara- bia’s representative to OPEC sur- prised attendees at a New York seminar by revealing his govern- ment was content to let global energy prices slide. Nasser al-Dossary’s message broke from decades of Saudi or- thodoxy that sought to keep prices high by limiting global oil production, said people familiar with the session. That set the stage for Saudi Arabia’s oil man- darins to send crude prices tum- bling late last month after per- suading other members of the Organization of the Petroleum Exporting Countries to keep production steady. Hard-hit countries like Iran, Russia and Venezu- ela suspected the move was a coordinated effort between the oil kingdom and its longtime ally, the U.S., to weaken their foes’ econ- omies and geopolitical standing. But the story of Saudi Ara- bia’s new oil strategy, pieced to- gether through interviews with senior Middle Eastern, American and European officials, isn’t one of an old alliance. It is a story of a budding rivalry, driven by what Saudi Arabia views as a threat posed by American en- ergy firms, these officials said. Shale-oil production in places like Texas and North Dakota has boosted U.S. output, displacing exports to the U.S. from OPEC members and adding to global oversupply. Mr. Dossary’s October message signaled a direct challenge to North American energy firms that the Arab monar- chy believes have fueled a supply glut by using new Please turn to page A14 By Jay Solomon in Washington and Summer Said in Dubai THE NEW DRILL Behind OPEC Decision, A Saudi Fear of U.S. Shale Jeb Bush’s announcement that he will explore a White House bid threatens years of painstak- ing spadework by other Republi- cans who have cultivated many of the wealthy donors loyal to the former Florida governor’s family. Mr. Bush is heir to a vaunted network of Republican contribu- tors built over his family’s two presidencies, his own governor- ship and other campaigns. It is one of the most formidable as- sets in GOP politics and could hamper the fund-raising of Re- publican potential rivals, includ- ing Florida Sen. Marco Rubio and New Jersey Gov. Chris Christie. The donors’ ties to the Bushes also could undercut possible in- terest in a third White House campaign by Mitt Romney. If the 2012 GOP presidential nominee runs, he would compete for the same contributors, many of whom helped finance his latest campaign. Early signs suggest that devo- tion to the Bush clan may trump newer relationships. Two leading members of Mr. Rubio’s Senate fundraising team—lobbyist Char- lie Black and Dirk Van Dongen, the head of a trade association— have suggested they would lean toward the former governor if both men pursued the Republi- can presidential nomination. Mr. Black has served on the steering committee of Mr. Ru- bio’s political-action committee for a few years, but said, “That’s just to help raise money. That’s not a presidential campaign.” Mr. Black served as a spokes- man for Mr. Bush’s father during his failed 1992 re-election cam- paign for president and advised both of his brother’s White House bids. “I’m obviously very Please turn to page A4 BY PATRICK O’CONNOR AND BETH REINHARD Bush’s Ties to Donors Put Rivals in a Bind Source: IEA *Includes natural-gas liquid and condensates. Average daily worldwide oil production*, barrels per day Roll out the Barrels OPEC total Other producers total 54.61 million 36.72 million The Wall Street Journal 2013 When 3-year-old Justin Webb wanted to talk to Santa this year, he knew exactly how to find the jolly old elf. After all, the tech- savvy toddler has been video chatting on his tablet computer since he was 2. “Can I call him?” he asked his mother, Tashyia Webb. So Ms. Webb, an administra- tive assistant in Durham, N.C., downloaded a FaceTime app that allowed Justin to video-chat Santa, and “there Santa was—his face, his beard, on the big screen in our living room,” she said. Ms. Webb, like many parents today, is ditching some of the old- school Christmas traditions like let- ter writing or vis- its to the mall in favor of a more digitally proficient Mr. Claus. With children glued to screens at ever-earlier ages—the average age of initial interaction is 11 months, according to one study—a raft of digital services have emerged to put Santa in the palm of their little hands. The new Cyber Santa juggles a full schedule: Texting, calling and video chatting, often for a price. Some services cost up to $30 for quality St. Nick time. At least 10 Twitter ac- counts purport to originate from the North Pole, boast- ing hundreds of thousands of fol- lowers each. One account, @Of- ficialSanta, greets followers with a profile picture that often changes, featuring everything from an easygoing Santa sport- ing red sunglasses to a smug Santa flashing his business card. Indeed, Cyber Santa at times seems to push the boundaries of what could strictly be called the Please turn to page A14 BY CAITLIN MCCABE Why Sit on Santa’s Lap, When You Can Use an App? i i i Tech-Savvy Tots Text, Video-Chat With St. Nick; Avoiding Mall Elves Cradle of Arab Spring Elects a Leader EARLY CELEBRATION: Supporters revel Sunday after Beji Caid Essebsi claimed he won the Tunisian presidency; his rival had yet to concede. A12 Fethi Belaid/Agence France-Presse/Getty Images TODAY IN MARKETPLACE One Day, 34 Million Packages KEYWORDS The Costs of Connectivity Reuters A New York City police officer kneels at a memorial for two officers killed in apparent retaliation for the deaths of Eric Garner and Michael Brown. Justin Lane/European Pressphoto Agency Stark test for mayor .................. A6 Police tensions strain cities.... A6 Oil-price drop shakes Venezuela’s debt...................... C1 Heard on the Street: Texas firms feel impact....... C6 C M Y K Composite Composite MAGENTA CYAN BLACK P2JW356000-5-A00100-1--------XA CL,CN,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SC,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,CT,DN,DR,FW,HL,HW,KS,LA,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW356000-5-A00100-1--------XA
