$3.00 DollarHits an11-YearHighonline.wsj.com/public/resources/documents/pageone010315.pdf ·...
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YELLOW VOL. CCLXV NO. 2 ****** SATURDAY/SUNDAY, JANUARY 3 - 4, 2015 HHHH $3.00 WSJ.com WEEKEND WHAT THE WORLD WILL SPEAK IN 2115 REVIEW Digital Decorum Digital Decorum 21 Do’s and Don’ts OFF DUTY Inside NOONAN A11 Bring on 2015— We’re Ready And Hopeful n The dollar rallied, rising to its highest level against ma- jor currencies since Septem- ber 2003, as investors bet on strong U.S. growth compared with the rest of the world. A1 n Pimco disclosed a sharp rise in outflows from its flag- ship fund, as the bond man- ager continues to grapple with Bill Gross’s departure. B1 n The trustee unwinding Lehman struck a deal with Pimco to settle more than $187 million in claims. B2 n The ISM’s purchasing man- agers index slipped last month, but the average PMI for 2014 bodes well for U.S. factories. A2 n The share of Americans under 30 who own busi- nesses hit a 24-year-low, re- flecting low risk tolerance. A1 n U.S. stocks ended mixed Friday, with the Dow indus- trials eking out a gain on the first trading day of 2015. B5 n Oil prices slid to more- than-five-year lows on weak Chinese economic data and reports of higher output. B5 n U.S. ethanol makers are bracing for a drop in earn- ings as crude-oil prices fall and corn prices rise. B4 n The FCC plans to vote in February on new rules for how broadband providers treat traffic on their networks. B3 n Linn Energy and Breit- burn Energy Partners are slashing shareholder payouts and capital spending. B1 What’s News i i i Business & Finance World-Wide i i i CONTENTS Books.......................... C5-10 Corporate News.... B3,4 Eating & Drinking D6-8 Heard on Street.......B14 In the Markets ........... B5 Letters to Editor ..... A10 Opinion.......................A9-11 Sports ............................. A12 Stock Listings.............. B6 Style & Fashion......D3-5 Travel .......................... D9,10 Weather Watch........B14 Weekend Investor B7-9 s Copyright 2015 Dow Jones & Company. All Rights Reserved > T he U.S. leveled sanctions against North Korea’s arms industry in retaliation for Pyongyang’s alleged hacking of Sony Pictures. A1 n Italy’s coast guard res- cued a cargo ship packed with hundreds of Syrian refugees, the latest “ghost ship” to be abandoned by its crew. A5 n Four people in a fishing boat from Pakistan allegedly carry- ing explosives died after a clash with India’s coast guard. A6 n Former Greek Prime Min- ister Papandreou has formed a new political party three weeks before a snap election. A5 n Detroit’s bankruptcy has resulted in a windfall of nearly $178 million for lawyers, con- sultants and other advisers. B2 n Pope Francis is likely to look to the developing world as he seeks to reshape the Roman Catholic hierarchy. A5 n A federal judge cleared the way for same-sex couples in Florida to begin marrying. A3 n China dismissed a senior diplomat as President Xi’s an- tigraft campaign widens. A6 n Sweden boosted security around mosques after three suspected arson attacks. A7 n Israeli settlers pelted a U.S. Consulate vehicle with rocks in the West Bank. A8 n A fire at Libya’s largest oil port was put out after burn- ing for more than a week. A8 HONOLULU—The Obama ad- ministration renewed a U.S. campaign of financial pressure against North Korea, imposing sanctions against the country’s lucrative arms industry in what American officials said was a first step in retaliation for Pyongyang’s alleged cyber- attack on Sony Pictures Enter- tainment. President Barack Obama signed an executive order on Friday widening his authority to further punish a country that is already the world’s most isolated. The move re- turns the U.S. to a posture of open hostility with its oldest remaining Cold War adversary after the American leader last month initiated a détente with Cuba. Treasury Secretary Jacob Lew said the moves were de- signed to “further isolate key North Korean entities and dis- rupt the activities of close to a dozen critical North Korean operatives.” He said the U.S. would defend its businesses and citizens from “attempts to undermine our values or threaten the national security of the United States.” The new moves come de- spite lingering questions over whether North Korea was be- hind the November attack by hackers who released thou- sands of embarrassing internal emails and threatened Sept. 11- like attacks on movie theaters if the studio released “The In- terview,” a comedy about the assassination of North Korea’s leader Kim Jong Un. The Obama administration has dis- counted those attacks. Some nongovernmental cy- bersecurity experts have chal- lenged the U.S. conclusion that North Korea was behind the hacking, arguing the attack would make more sense as the work of an aggrieved former Sony employee. Some security researchers not involved in the Sony probe argue the govern- ment didn’t prove its case. However, the White House has stood by the Federal Bu- reau of Investigation’s assess- ment. “We remain very confi- dent in the attribution,” an administration official said Friday during a conference call with reporters. Please turn to page A6 BY CAROL E. LEE AND JAY SOLOMON North Korean Arms Dealers Targeted Investors snapped up dollars, pushing the greenback to its highest level against major cur- rencies since September 2003, as they ramped up bets the U.S. economy will pull ahead of the rest of the world, with the Fed- eral Reserve in the driver’s seat. But as the value of the dollar rises against the currencies of some of the country’s biggest trading partners, so do the risks to America’s manufacturing and tourism sectors and to broader financial markets, economists and industry officials say. An- other worry: The dollar’s gain reflects concerns about weak- ness in China, Europe and Japan that could become a drag on U.S. growth. The WSJ Dollar Index, which tracks the U.S. dollar’s perfor- mance against 16 other curren- cies, opened the year on Friday with a 0.8% rise. That gain builds on a 12% rally in 2014 that bolstered the allure of U.S. stocks and bonds. Propelling the rally is antici- pation of the Fed’s first interest- rate increase in almost a decade, a move widely expected to come this year. The Fed is preparing to raise rates from near zero amid steady improvement in the U.S. economy and labor market since the financial crisis. The Fed is poised to tighten credit just as other central banks, such as the European Central Bank, are weighing expansions of easy-money policies. Higher benchmark interest rates tend to boost a currency as investors, searching for bigger returns, con- vert cash into that currency. “U.S. economic outperfor- mance is at the forefront of this rally,” said Alan Ruskin, head of G-10 foreign exchange strategy at Deutsche Bank in New York. Please turn to the next page BY IRA IOSEBASHVILI AND IAN TALLEY Dollar Hits an 11-Year High Risks Rise for Manufacturing and Tourism as U.S. Becomes More Expensive Merlijn Doomernik for The Wall Street Journal Endangered Species: The Young Entrepreneur ARNHEM, Netherlands—Two dozen scruffy skateboarders launched perilous jumps in a soaring old church building here on a recent night, watched over by a mosaic likeness of Jesus and a solemn ar- ray of stone saints. This is the Arnhem Skate Hall, an uneasy rein- carnation of the Church of St. Joseph, which once rang with the prayers of nearly 1,000 worshipers. It is one of hundreds of churches, closed or threatened by plunging membership, that pose a question for communities, and even governments, across Western Europe: What to do with once-holy, now-empty buildings that increasingly mark the countryside from Britain to Denmark? The Skate Hall may not last long. The once- stately church is streaked with water damage and badly needs repair; the city sends the skaters tax bills; and the Roman Catholic Church, which still owns the building, is trying to sell it at a price they can’t afford. “We’re in no-man’s-land,” says Collin Versteegh, BY NAFTALI BENDAVID NEW MISSION Europe’s Empty Churches Go on Sale The share of people under age 30 who own private businesses has reached a 24-year-low, ac- cording to new data, underscor- ing financial challenges and a low tolerance for risk among young Americans. Roughly 3.6% of households headed by adults younger than 30 owned stakes in private com- panies, according to an analysis by The Wall Street Journal of re- cently released Federal Reserve data from 2013. That compares with 10.6% in 1989—when the central bank began collecting standard data on Americans’ in- comes and net worth—and 6.1% in 2010. The Journal’s findings run counter to the widely held stere- otype of 20-somethings as entre- preneurial risk-takers. The sharp decline in business ownership among young adults, even when taking into account the aging population, adds to worries Please turn to page A4 BY RUTH SIMON AND CAELAINN BARR the youthful 46-year-old who runs the operation, rolling cigarettes between denouncing local politi- cians. “We have no room to maneuver anywhere.” The Skate Hall’s plight is replicated across a continent that long nurtured Christianity but is be- coming relentlessly secular. The closing of Europe’s churches reflects the rapid weakening of the faith in Europe, a phenome- non that is painful to both worshipers and others who see religion as a unifying factor in a disparate society. “In these little towns, you have a cafe, a church and a few houses—and that is the village,” says Lil- ian Grootswagers, an activist who fought to save the church in her Dutch town. “If the church is abandoned, we will have a huge change in our country.” Trends for other religions in Europe haven’t matched those for Christianity. Orthodox Judaism, which is predominant in Europe, has held relatively steady. Islam, meanwhile, has grown amid immi- gration from Muslim countries in Africa and the Please turn to page A8 AirAsia Recovery Effort Speeds Up Darren Whiteside/Reuters The former Roman Catholic Church of St. Joseph in Arnhem, Netherlands, one of hundreds of decommissioned churches, was turned into a skate park. WHITE COFFINS: Men in military formation carried remains of AirAsia Flight 8501 victims to a waiting plane on Friday. Thirty bodies have been recovered so far, with searchers helped by better weather. A7 Source: Pew Research Center The Wall Street Journal No Congregation Percentage of population who say they are unaffiliated with any religion, 2010 Brazil China France Germany Italy Netherlands Nigeria U.K. U.S. 7.9% 52.2 28.0 24.7 12.4 42.1 0.4 21.3 16.4 Quickest Plays in Pro Football May Come from the DJ i i i Audio Engineer Scores Pop-Music Interludes; Orange Crush, Black Cat In December, in an NFL game televised by NBC’s “Sunday Night Football,” San Diego Charger Dar- rell Stuckey scooped up a fumble by the New England Patriots and took it 53 yards for a touchdown. After the extra point was kicked, the broadcast segued to a commercial with re- plays of the fumble and Mr. Stuckey celebrating with a kiss to the heavens. Those images were accompanied by an interesting bit of background music: the rock riff that opens “Cryin’,” a 1993 hit by the Boston-bred band Aerosmith. Crying is just what New England fans felt like doing at that mo- ment, of course, and the brief ref- erence was no accident. “Sunday Night Football,” whose crew will air a playoff game to- night and the Super Bowl in Feb- ruary, has all the traditional trap- pings of an NFL broadcast: active graphics, a martial theme song and a glitzy opening number. But producers of the show also cater to a hipper demographic with sub- tle pop- and indie-music refer- ences that spice up the transitions to commercial breaks. Much of the music played during those “bumpers”—as the 10- to 15-second segues are known in the broadcasting industry—is carefully chosen, even if the connection to the game isn’t immediately obvi- ous. The snippets are nearly always from the instrumen- tal portions of the songs—no lyrics—which can make it more challenging to identify the artist and the title of the tune. During a 2013 broadcast from Denver, the show played a snippet of the R.E.M. song “Orange Crush” following a goal-line stand by the orange- suited Denver Broncos, and a bit of Maroon 5’s “Harder to Breathe” over video of a lineman using an oxygen mask to augment the thin Please turn to page A4 BY TOM MCGINTY Darrell Stuckey C M Y K Composite Composite MAGENTA CYAN BLACK P2JW003000-6-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 P2JW003000-6-A00100-1--------XA
Transcript of $3.00 DollarHits an11-YearHighonline.wsj.com/public/resources/documents/pageone010315.pdf ·...
YELLOW
VOL. CCLXV NO. 2 * * * * * *
SATURDAY/SUNDAY, JANUARY 3 - 4, 2015
HHHH $3 .00
WSJ.com
WEEKEND
WHATTHE WORLDWILL SPEAK
IN 2115
REVIEW
DigitalDecorumDigitalDecorum21Do’s andDon’ts
OFF DUTY
InsideNOONAN A11
Bring on 2015—We’re ReadyAnd Hopeful
n The dollar rallied, risingto its highest level against ma-jor currencies since Septem-ber 2003, as investors bet onstrong U.S. growth comparedwith the rest of the world. A1n Pimco disclosed a sharprise in outflows from its flag-ship fund, as the bond man-ager continues to grapplewith Bill Gross’s departure. B1n The trustee unwindingLehman struck a deal withPimco to settle more than$187 million in claims. B2n The ISM’s purchasingman-agers index slipped last month,but the average PMI for 2014bodes well for U.S. factories.A2n The share of Americansunder 30 who own busi-nesses hit a 24-year-low, re-flecting low risk tolerance. A1n U.S. stocks ended mixedFriday, with the Dow indus-trials eking out a gain on thefirst trading day of 2015. B5n Oil prices slid to more-than-five-year lows on weakChinese economic data andreports of higher output. B5n U.S. ethanol makers arebracing for a drop in earn-ings as crude-oil prices falland corn prices rise. B4n The FCC plans to vote inFebruary on new rules for howbroadband providers treattraffic on their networks. B3n Linn Energy and Breit-burn Energy Partners areslashing shareholder payoutsand capital spending. B1
What’sNews
i i i
Business&Finance
World-Wide
i i i
CONTENTSBooks..........................C5-10Corporate News.... B3,4Eating & Drinking D6-8Heard on Street.......B14In the Markets...........B5Letters to Editor.....A10
Opinion.......................A9-11Sports.............................A12Stock Listings..............B6Style & Fashion......D3-5Travel..........................D9,10Weather Watch........B14Weekend Investor B7-9
s Copyright 2015 Dow Jones & Company.All Rights Reserved
>
The U.S. leveled sanctionsagainst North Korea’s
arms industry in retaliationfor Pyongyang’s allegedhacking of Sony Pictures. A1n Italy’s coast guard res-cued a cargo ship packed withhundreds of Syrian refugees,the latest “ghost ship” to beabandoned by its crew. A5nFour people in a fishing boatfrom Pakistan allegedly carry-ing explosives died after a clashwith India’s coast guard. A6n Former Greek PrimeMin-ister Papandreou has formed anew political party three weeksbefore a snap election. A5n Detroit’s bankruptcy hasresulted in a windfall of nearly$178 million for lawyers, con-sultants and other advisers. B2n Pope Francis is likely tolook to the developing worldas he seeks to reshape theRoman Catholic hierarchy. A5n A federal judge cleared theway for same-sex couples inFlorida to begin marrying. A3n China dismissed a seniordiplomat as President Xi’s an-tigraft campaign widens. A6n Sweden boosted securityaround mosques after threesuspected arson attacks. A7n Israeli settlers pelted aU.S. Consulate vehicle withrocks in the West Bank. A8n A fire at Libya’s largest oilport was put out after burn-ing for more than a week. A8
HONOLULU—The Obama ad-ministration renewed a U.S.campaign of financial pressureagainst North Korea, imposingsanctions against the country’slucrative arms industry inwhat American officials saidwas a first step in retaliationfor Pyongyang’s alleged cyber-attack on Sony Pictures Enter-tainment.
President Barack Obamasigned an executive order onFriday widening his authorityto further punish a countrythat is already the world’smost isolated. The move re-turns the U.S. to a posture ofopen hostility with its oldestremaining Cold War adversaryafter the American leader lastmonth initiated a détente withCuba.
Treasury Secretary JacobLew said the moves were de-signed to “further isolate keyNorth Korean entities and dis-rupt the activities of close to adozen critical North Koreanoperatives.” He said the U.S.would defend its businessesand citizens from “attempts toundermine our values orthreaten the national securityof the United States.”
The new moves come de-spite lingering questions overwhether North Korea was be-hind the November attack byhackers who released thou-sands of embarrassing internalemails and threatened Sept. 11-like attacks on movie theatersif the studio released “The In-terview,” a comedy about theassassination of North Korea’sleader Kim Jong Un. TheObama administration has dis-counted those attacks.
Some nongovernmental cy-bersecurity experts have chal-lenged the U.S. conclusion thatNorth Korea was behind thehacking, arguing the attackwould make more sense as thework of an aggrieved formerSony employee. Some securityresearchers not involved in theSony probe argue the govern-ment didn’t prove its case.
However, the White Househas stood by the Federal Bu-reau of Investigation’s assess-ment. “We remain very confi-dent in the attribution,” anadministration official saidFriday during a conference callwith reporters.
PleaseturntopageA6
BY CAROL E. LEEAND JAY SOLOMON
NorthKoreanArmsDealersTargeted
Investors snapped up dollars,pushing the greenback to itshighest level against major cur-rencies since September 2003,as they ramped up bets the U.S.economy will pull ahead of therest of the world, with the Fed-eral Reserve in the driver’s seat.
But as the value of the dollarrises against the currencies ofsome of the country’s biggest
trading partners, so do the risksto America’s manufacturing andtourism sectors and to broaderfinancial markets, economistsand industry officials say. An-other worry: The dollar’s gainreflects concerns about weak-ness in China, Europe and Japanthat could become a drag on U.S.growth.
The WSJ Dollar Index, whichtracks the U.S. dollar’s perfor-mance against 16 other curren-cies, opened the year on Friday
with a 0.8% rise. That gainbuilds on a 12% rally in 2014 thatbolstered the allure of U.S.stocks and bonds.
Propelling the rally is antici-pation of the Fed’s first interest-rate increase in almost a decade,a move widely expected to comethis year. The Fed is preparing toraise rates from near zero amidsteady improvement in the U.S.economy and labor market sincethe financial crisis.
The Fed is poised to tighten
credit just as other central banks,such as the European CentralBank, are weighing expansions ofeasy-money policies. Higherbenchmark interest rates tend toboost a currency as investors,searching for bigger returns, con-vert cash into that currency.
“U.S. economic outperfor-mance is at the forefront of thisrally,” said Alan Ruskin, head ofG-10 foreign exchange strategyat Deutsche Bank in New York.
Pleaseturntothenextpage
BY IRA IOSEBASHVILIAND IAN TALLEY
Dollar Hits an 11-Year HighRisks Rise for Manufacturing and Tourism as U.S. Becomes More Expensive
MerlijnDoomernikforTh
eWallS
treetJournal
EndangeredSpecies:The YoungEntrepreneur
ARNHEM, Netherlands—Two dozen scruffyskateboarders launched perilous jumps in a soaringold church building here on a recent night, watchedover by a mosaic likeness of Jesus and a solemn ar-ray of stone saints.
This is the Arnhem Skate Hall, an uneasy rein-carnation of the Church of St. Joseph, which oncerang with the prayers of nearly 1,000 worshipers.
It is one of hundreds of churches, closed orthreatened by plunging membership, that pose aquestion for communities, and even governments,across Western Europe: What to do with once-holy,now-empty buildings that increasingly mark thecountryside from Britain to Denmark?
The Skate Hall may not last long. The once-stately church is streaked with water damage andbadly needs repair; the city sends the skaters taxbills; and the Roman Catholic Church, which stillowns the building, is trying to sell it at a price theycan’t afford.
“We’re in no-man’s-land,” says Collin Versteegh,
BY NAFTALI BENDAVID
NEW MISSION
Europe’s Empty Churches Go on Sale
The share of people under age30 who own private businesseshas reached a 24-year-low, ac-cording to new data, underscor-ing financial challenges and alow tolerance for risk amongyoung Americans.
Roughly 3.6% of householdsheaded by adults younger than30 owned stakes in private com-panies, according to an analysisby The Wall Street Journal of re-cently released Federal Reservedata from 2013. That compareswith 10.6% in 1989—when thecentral bank began collectingstandard data on Americans’ in-comes and net worth—and 6.1%in 2010.
The Journal’s findings runcounter to the widely held stere-otype of 20-somethings as entre-preneurial risk-takers. The sharpdecline in business ownershipamong young adults, even whentaking into account the agingpopulation, adds to worries
PleaseturntopageA4
BY RUTH SIMONAND CAELAINN BARR
the youthful 46-year-old who runs the operation,rolling cigarettes between denouncing local politi-cians. “We have no room to maneuver anywhere.”
The Skate Hall’s plight is replicated across acontinent that long nurtured Christianity but is be-coming relentlessly secular.
The closing of Europe’s churches reflects therapid weakening of the faith in Europe, a phenome-non that is painful to both worshipers and otherswho see religion as a unifying factor in a disparatesociety.
“In these little towns, you have a cafe, a churchand a few houses—and that is the village,” says Lil-ian Grootswagers, an activist who fought to savethe church in her Dutch town. “If the church isabandoned, we will have a huge change in ourcountry.”
Trends for other religions in Europe haven’tmatched those for Christianity. Orthodox Judaism,which is predominant in Europe, has held relativelysteady. Islam, meanwhile, has grown amid immi-gration from Muslim countries in Africa and the
PleaseturntopageA8
AirAsia Recovery Effort Speeds Up
DarrenWhiteside/R
euters
The former Roman Catholic Church of St. Joseph in Arnhem, Netherlands, one of hundreds of decommissioned churches, was turned into a skate park.
WHITE COFFINS: Men in military formation carried remains of AirAsiaFlight 8501 victims to a waiting plane on Friday. Thirty bodies havebeen recovered so far, with searchers helped by better weather. A7
Source: Pew Research CenterThe Wall Street Journal
No CongregationPercentage of population whosay they are unaffiliated withany religion, 2010
Brazil
China
France
Germany
Italy
Netherlands
Nigeria
U.K.
U.S.
7.9%
52.2
28.0
24.7
12.4
42.1
0.4
21.3
16.4
Quickest Plays in Pro FootballMay Come from the DJ
i i i
Audio Engineer Scores Pop-Music Interludes;Orange Crush, Black Cat
In December, in an NFL gametelevised by NBC’s “Sunday NightFootball,” San Diego Charger Dar-rell Stuckey scooped up a fumbleby the New England Patriots andtook it 53 yards for a touchdown.
After the extra point waskicked, the broadcast seguedto a commercial with re-plays of the fumble andMr.Stuckey celebrating witha kiss to the heavens.Those images wereaccompanied by aninteresting bit ofbackground music: therock riff that opens“Cryin’,” a 1993 hitby the Boston-bredband Aerosmith.
Crying is justwhat New Englandfans felt like doing at that mo-ment, of course, and the brief ref-erence was no accident.
“Sunday Night Football,”whosecrew will air a playoff game to-night and the Super Bowl in Feb-ruary, has all the traditional trap-pings of an NFL broadcast: active
graphics, a martial theme songand a glitzy opening number. Butproducers of the show also caterto a hipper demographic with sub-tle pop- and indie-music refer-ences that spice up the transitionsto commercial breaks.
Much of themusic playedduring those
“bumpers”—as the 10-to 15-second segues are
known in the broadcastingindustry—is carefully chosen,even if the connection to thegame isn’t immediately obvi-ous. The snippets are nearlyalways from the instrumen-
tal portions of the songs—nolyrics—which can make it more
challenging to identify the artistand the title of the tune.
During a 2013 broadcastfrom Denver, the show
played a snippet of the R.E.M.song “Orange Crush” following agoal-line stand by the orange-suited Denver Broncos, and a bit ofMaroon 5’s “Harder to Breathe”over video of a lineman using anoxygen mask to augment the thin
PleaseturntopageA4
BY TOM MCGINTY
Darrell Stuckey
CM Y K CompositeCompositeMAGENTA CYAN BLACK
P2JW003000-6-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
P2JW003000-6-A00100-1--------XA
