YELLOW
* * * * * MONDAY, DECEMBER 22, 2014 ~ VOL. CCLXIV NO. 147 WSJ.com HHHH $3 .00
Lastweek: DJIA 17804.80 À 523.97 3.0% NASDAQ 4765.38 À 2.4% NIKKEI 17621.40 À 1.4% STOXX600 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
CONTENTSAhead of the Tape.. C1Corporate News B2-4,7Global Finance............ C3Heard on the Street C6Law Journal ................ B6Markets Dashboard C4
Media............................... B5Moving the Market C2Opinion.................. A15-17Sports.............................. B8U.S. News................. A2-6Weather Watch........ B7World News......... A8-13
s Copyright 2014 Dow Jones & Company.All Rights Reserved
>
What’sNews
i i i
World-WidenThe killing of two New Yorkpolice officers has emboldenedcritics who say a permissiveapproach to protests againstpolice tactics had made policevulnerable to attack. A1, A6n TheWhite House is weigh-ing targeting banks and trad-ing firms controlled by NorthKorea’s leader in response tothe alleged Sony hacking. A8nNorth Korea said it waslaunching a “counteraction”against the U.S. “thousands oftimes greater” than the SonyPictures cyberattack. A8nAn outside attorney forSony insisted “The Interview,”the film that sparked the cyber-attack, will be distributed. B5n Iraqi Kurdish fighters droveIslamic Statemilitants from thecenter of the northern city ofSinjar, rescuing hundreds ofmembers of the Yazidi sect.A12n Obama plans to announcea flurry of detainee transfersfrom Guantanamo Bay incoming weeks as part of hispush to close the prison. A4n Tunisia’s candidate forpresident with ties to thecountry’s autocratic past de-clared victory in a runoffthat has yet to be called. A12n San Antonio is movingahead with annexation plansthat would add up to 200,000people and potentially make itthe U.S.’s fifth-largest city. A3n The U.S. Army is nearing adecision on the fate of the sol-dier held by Afghan insur-gents for nearly five years. A4nAn Australian womanwascharged in the deaths of sevenof her children and a niece. A11
i i i
Buying bymoneymanagerstrying tomatch this year’s
stock gains helped fuel lastweek’s rally but has deepenedfear of an early 2015 slump. A1n Ocwen’s chairman willstep down as part of a settle-ment between the mortgage-servicing firm and New York’stop financial regulator. C1nVenezuela has been hardhit by a slide in oil prices, rais-ing concerns about its debtand the health of developingeconomies world-wide. C1n Citigroup pushed forwardwith a series of metal-financ-ing deals in China despitewarnings of risks, people fa-miliar with the talks said. C1nDrug-benefit-manager Ex-press Scripts will make anAbbVie drug the exclusive op-tion for hepatitis C patients. B1nThe U.S. and Cubawill faceclaims of over $7 billion for na-tionalized assets as part oftheir move to normalize ties. B1n An ex-Petrobras officialgave prosecutors data thatpurportedly show the boardwas told of an alleged briberyscheme as early as 2009. B4n Xiaomi’s latest round offinancing values the Chinesesmartphone maker at morethan $45 billion. B3nNissan plans to increase out-put in Japan and boost exportsnext year, its CEO said. B4nDish Networks has stoppedcarrying two Fox channelsamid a contract dispute. B5n “TheHobbit” opened infirst place at the box office,bringing in $56.2million. B5
Business&Finance
The elastic U.S. stock marketkeeps snapping back, but lastweek’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 upwith the overall stock market’sclimb this year helped spark a736-point jump by the DowJones Industrial Average fromWednesday through Friday.
Three straight days of gainsleft the blue chip stock index at17804.80, or less than 1% belowits record of 17958.79 reachedDec. 5. The surge came right af-ter an 890-point slide that in-cluded declines in six out ofseven trading days.
Fuel for last week’s stock-market gains came from investorconfidence that the U.S. eco-nomic recovery is for real, infla-tion will stay low and interest-rate increases expected from theFederal Reserve next year won’tend the bull market.
Another source of upwardmomentum for stocks is causingjitters, though. Many moneymanagers whose recent perfor-mance lags behind the overallmarket are hoping for a last-minute boost from pumping cashinto especially fast-rising stocks,investment strategists say.
Those managers are desperateto boost their performance sothey won’t look bad comparedwith the index they are trackedagainst, usually the S&P 500. “Ifyou are among the 85% of moneymanagers behind the S&P 500,this is a chance to catch up,”
PleaseturntopageA12
BY E.S. BROWNING
LaggingFundsFuel2015Worries
The assassination of two NewYork City police officers thisweekend has emboldened policeand their supporters to lash outat weeks of nationwide protestand criticism that they say haveleft officers more vulnerable.
Police are investigating social-media posts by Ismaaiyl Brinsley,the apparent assailant in thepoint-blank fatal shootings Sat-urday of the two officers whowere sitting in their patrol car inBrooklyn. In them, he allegedly
talked about killing officers inretaliation for the deaths of EricGarner on Staten Island, N.Y., andMichael Brown in Ferguson, Mo.,this summer during confronta-tions with police.
Experts on law enforcementsaid the demonstrations that fol-lowed grand jury decisions notto charge the officers in thosecases have strained police mo-rale nationwide, as officers havebeen forced to defend their tac-tics, then deploy in big numbersto protests against those tactics.
“This senseless murder of two
of New York’s finest further ex-emplifies the dangerous politicalclimate in which all members oflaw enforcement, nationwide,now find themselves,” Baltimorepolice union President GeneRyan said in a posting on theBaltimore Fraternal Order of Po-lice website.
“Not since the political unrestof the 1960s have police officersbeen so targeted,” he said.
On Sunday, a somber-facedNew York Mayor Bill de Blasio,who has come under witheringcriticism from the city’s police
union, which contends he has un-dermined officers, attended Massat St. Patrick’s Cathedral in Man-hattan, flanked in a pew by hiswife and Police CommissionerWilliam Bratton.
“We are in solidarity withyou,” New York Cardinal TimothyDolan told the public officials.
Protest leaders have con-demned the killing of the two of-ficers. The protest movement
PleaseturntopageA6
BY HEATHER HADDON
Killings of New York OfficersSpark Backlash to Protests
In early October, Saudi Ara-bia’s representative to OPEC sur-prised attendees at a New Yorkseminar by revealing his govern-ment was content to let globalenergy prices slide.
Nasser al-Dossary’s messagebroke from decades of Saudi or-thodoxy that sought to keepprices high by limiting global oilproduction, said people familiarwith the session. That set thestage 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 thePetroleum Exporting Countries to keep productionsteady.
Hard-hit countries like Iran, Russia and Venezu-ela suspected the move was a coordinated effortbetween 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 withsenior Middle Eastern, Americanand European officials, isn’t oneof an old alliance. It is a story ofa budding rivalry, driven bywhat Saudi Arabia views as athreat posed by American en-ergy firms, these officials said.
Shale-oil production in placeslike Texas and North Dakota hasboosted U.S. output, displacingexports to the U.S. from OPECmembers and adding to globaloversupply.
Mr. Dossary’s October messagesignaled a direct challenge to
North American energy firms that the Arab monar-chy believes have fueled a supply glut by using new
PleaseturntopageA14
By Jay Solomonin Washington and
Summer Said in Dubai
THE NEW DRILL
Behind OPEC Decision,A Saudi Fear of U.S. Shale
Jeb Bush’s announcement thathe will explore a White Housebid threatens years of painstak-ing spadework by other Republi-cans who have cultivated manyof the wealthy donors loyal tothe former Florida governor’sfamily.
Mr. Bush is heir to a vauntednetwork of Republican contribu-tors built over his family’s twopresidencies, his own governor-ship and other campaigns. It isone of the most formidable as-sets in GOP politics and couldhamper the fund-raising of Re-publican potential rivals, includ-ing Florida Sen. Marco Rubioand New Jersey Gov. ChrisChristie.
The donors’ ties to the Bushesalso could undercut possible in-terest in a third White Housecampaign by Mitt Romney. If the2012 GOP presidential nominee
runs, he would compete for thesame contributors, many ofwhom helped finance his latestcampaign.
Early signs suggest that devo-tion to the Bush clan may trumpnewer relationships. Two leadingmembers of Mr. Rubio’s Senatefundraising team—lobbyist Char-lie Black and Dirk Van Dongen,the head of a trade association—have suggested they would leantoward the former governor ifboth men pursued the Republi-can presidential nomination.
Mr. Black has served on thesteering committee of Mr. Ru-bio’s political-action committeefor a few years, but said, “That’sjust to help raise money. That’snot a presidential campaign.”
Mr. Black served as a spokes-man for Mr. Bush’s father duringhis failed 1992 re-election cam-paign for president and advisedboth of his brother’s WhiteHouse bids. “I’m obviously very
PleaseturntopageA4
BY PATRICK O’CONNORAND BETH REINHARD
Bush’sTies toDonorsPutRivals in a Bind
Source: IEA
*Includes natural-gas liquid and condensates.
Average daily worldwide oilproduction*, barrels per day
Roll out the Barrels
OPECtotal
Other producerstotal
54.61million
36.72million
The Wall Street Journal
2013
When 3-year-old Justin Webbwanted to talk to Santa this year,he knew exactly how to find thejolly old elf. After all, the tech-savvy toddler has been videochatting on his tablet computersince he was 2.
“Can I call him?” he asked hismother, Tashyia Webb.
So Ms. Webb, an administra-tive assistant in Durham, N.C.,downloaded a FaceTime app thatallowed Justin to video-chatSanta, and “there Santa was—hisface, his beard, on the big screenin our living room,” she said.
Ms. Webb, like many parents
today, is ditchingsome of the old-school Christmastraditions like let-ter writing or vis-its to the mall infavor of a moredigitally proficientMr. Claus. With children glued toscreens at ever-earlier ages—theaverage age of initial interactionis 11 months, according to onestudy—a raft of digital serviceshave emerged to put Santa inthe palm of their little hands.
The new Cyber Santa jugglesa full schedule: Texting, callingand video chatting, often for aprice. Some services cost up to
$30 for quality St.Nick time. At least10 Twitter ac-counts purport tooriginate from theNorth Pole, boast-ing hundreds ofthousands of fol-
lowers each. One account, @Of-ficialSanta, greets followers witha profile picture that oftenchanges, featuring everythingfrom an easygoing Santa sport-ing red sunglasses to a smugSanta flashing his business card.
Indeed, Cyber Santa at timesseems to push the boundaries ofwhat could strictly be called the
PleaseturntopageA14
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 Essebsiclaimed he won the Tunisian presidency; his rival had yet to concede. A12
FethiB
elaid/AgenceFran
ce-Presse/Getty
Images
TODAY IN MARKETPLACE
One Day, 34 Million PackagesKEYWORDS 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/EuropeanPresspho
toAgency
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
CM Y K CompositeCompositeMAGENTA 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,WEBG,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
