SATURDAY/SUNDAY,NOVEMBER 17 -18, 2012 WSJ.com...
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YELLOW VOL. CCLX NO. 118 ******* SATURDAY/SUNDAY, NOVEMBER 17 - 18, 2012 HHHH $3.00 WSJ.com WEEKEND LEARNING TO LOVE VOLATILITY REVIEW Mastering the Mismatched Look OFF DUTY n The Dow industrials rose 45.93 points to 12588.31 on Friday, reversing a morning slide, but the average is now down 755.20 points or 5.66% over the past four weeks. B5 n Twinkies were being hoarded by customers after owner Hostess said that it would close its bakeries and fire 18,000 workers. A1 n Two banks settled SEC charges that they misled in- vestors on $1 billion of debt backed by home loans. B1 n Regional casino company Penn National announced it is splitting its gambling and real-estate operations. B4 n Nintendo hopes to reverse its fortunes Sunday when it debuts its first new video- game console in six years. B1 n Activision said its “Call of Duty: Black Ops II” video- game took in $500 million in sales on its first day. B3 n Tribune is expected to name Peter Liguori, a former president of Fox Broadcast- ing, as its new CEO. B4 n Netflix’s CEO disputed in- vestor Icahn’s statement that the company should sell itself to a larger firm. B3 n Ex-BBC chief Thompson is taking fire over when he learned about sex-abuse alle- gations against now-dead entertainer Jimmy Savile. B3 What’s News i i i Business & Finance World-Wide i i i CONTENTS Books ..................... C5-C19 Cooking & Eating D2-4,6 Corporate News B1,3-4 Design............................. D8 Gear & Gadgets D11-12 Heard on the Street B16 Ideas Market............... C4 Opinion.................. A15-17 Stock Listings.... C11-12 Style & Fashion.... D2-3 Travel........................ D9-10 Weather....................... B15 Wknd Investor.....B7-10 s Copyright 2012 Dow Jones & Company. All Rights Reserved Inside NOONAN A17 Egomania In America’s Top Ranks n Israel’s military readied for a Gaza ground invasion. Palestinian rockets struck near Tel Aviv and Jerusalem, while Israel laid the ground- work for its first ground op- erations into Gaza since 2009, calling up 75,000 re- servists. Neighboring Egypt escalated its own war of words against Israel. A9 Egypt’s prime minister Qandil met with Hamas, in a bold show of support. n An oil and gas platform off Louisiana’s coast ex- ploded, severely burning at least four workers and leav- ing two of them missing. A3 n Petraeus testified that he had briefed members of Con- gress that there was “signifi- cant terrorist involvement” in the Sept. 11 attack on the U.S. consulate in Libya. A1 n The two women at the center of the Petraeus scan- dal made social visits to staff- ers at the White House A6 n The train crash that killed four veterans in a Texas pa- rade drew scrutiny from U.S. and local investigators. Tales of heroism emerged. A4 n Obama and congressional leaders agreed Friday to move quickly on talks to avert a year-end fiscal crisis. A8 n Obama’s historic visit to Myanmar this weekend is part of a strategy to counter- balance China’s power. A12 n Thousands of Jordanians protested for economic and other reforms. A10 WASHINGTON—Former Cen- tral Intelligence Agency Director David Petraeus said Friday that he told Congress from the earli- est days that there was “signifi- cant terrorist involvement” in the Sept. 11 attack on the U.S. consulate in Libya—adding to the controversy over the admin- istration’s handling of the attack. Mr. Petraeus, who resigned last week after acknowledging an extramarital affair, went to Con- gress on Friday to defend his old agency’s role in the response to the Benghazi, Libya, attack. In his closed-door testimony, he said that, in secret briefings with lawmakers soon after the attack, he had apprised them of the likely involvement of a local mili- tant group, Ansar al-Sharia, said Rep. Peter King (R., N.Y.), de- scribing his comments. Those comments rekindled debate about the intelligence community’s initial assessments that the attack was a terrorist strike, and whether the Obama administration resisted calling it a terrorist act for political rea- sons. The controversy also was ex- tended when some lawmakers said they had a different recol- lection of Mr. Petraeus’s earlier comments. Rep. King, who de- scribed Mr. Petraeus’s Friday tes- timony, said his recollection of his earlier conversations was dif- ferent. “He said today that, at the time, he was emphasizing the role of Ansar al-Sharia. But at the time, my recollection is that he was minimizing the role of Ansar al-Sharia,’’ Mr. King told reporters, referring to a local militant group sympathetic to al Qaeda. Mr. Petraeus spoke behind closed doors Friday in long- awaited meetings with House and Senate intelligence commit- tee members. The Libya attack claimed the lives of U.S. Ambas- sador Christopher Stevens and three other Americans. Mr. Petraeus’s Friday testi- mony, as outlined by lawmakers who were present, was generally consistent with how U.S. officials have described the shifting intel- ligence assessments of the con- sulate assault in interviews dat- ing back to the days after it occurred. Still, his appearance and testimony this week by top U.S. intelligence and law-enforce- ment officials haven’t blunted questions about the use of intel- Please turn to page A6 BY SIOBHAN GORMAN AND DEVLIN BARRETT Petraeus Raised Terror Link Former CIA Chief, in Private Testimony, Prompts New Questions About Handling of Benghazi Attack The seemingly imperishable Twinkie finally may have an ex- piration date. Hostess Brands Inc., the 85- year-old maker of iconic treats such as Twinkies, Ding Dongs and pantry staples like Wonder Bread, on Friday said it would go out of business after failing to reach agreement on wage and pension cuts with its bakers’ union. The Irving, Texas-based com- pany, which filed for Chapter 11 for a second time in January, closed all factories and asked a judge for permission to start proceedings that will mean job losses for about 18,500 employ- ees and could result in more than 30 brands being sold or dis- appearing. Liquidation firm Great American Group Inc. and C. Dean Metropoulos & Co., owner of beer brands including Pabst Blue Ribbon, have signaled interest in Hostess’s brands. The move endangers Ameri- can treats and snacks that have graced supermarket shelves for decades, but have had trouble keeping up with trends toward healthier snacking. The Twinkie—a sugary mix of rich cream filling encased in a tubu- lar yellow cake—appeared often in lunchboxes and popular films. It also showed organized la- bor’s willingness to test the boundaries of wage and benefit givebacks. During and after the 2008 financial crisis, auto work- ers and others readily agreed to concessions deemed crucial for survival. But this year, workers at Caterpillar Inc. and Hostess Please turn to page A6 By Rachel Feintzeig, Mike Spector and Julie Jargon Twinkie Maker Hostess To Close SEA BRIGHT, N.J.—A week after Sandy buried this coastal town in six feet of sand, a bus took residents to view the re- mains. Small talk quickly turned to shock. “Dunkin’ Donuts is gone,” said one. “Oh my God,” whispered a woman as they drove up Ocean Avenue, the main drag through town. The business district was destroyed. Finally, 77-year-old retiree Ira Korn- blut raised his fist. “We’re coming back,” he said, choking back tears. “We’re Sea Brighters!” As towns up and down the eastern seaboard take stock of tens of billions of dollars in damage from one of the worst storms to hit the U.S., authorities and residents speak publicly about their in- tent to rebuild. “I promised to everybody that I was speaking on behalf of the country when I said we are going to be here until the re- building is complete, and I meant it,” President Barack Obama said Thursday during a visit to New York City’s battered Staten Island. But with the federal budget deep in the red and government flood insurance still straining to recover from Hurricane Katrina, Sea Bright and other coastal towns face questions over not just how to rebuild in a way that defends lives and property against surging sea levels and more intense storms, but whether to re- build at all. Sandy’s destructive path has united an unlikely coalition of free-market think tanks, environmentalists, business own- ers and insurers arguing the moral haz- ard of rebuilding in coastal zones that might best be returned to nature. “It’s very difficult to get beyond the sympathy factor,” said Orrin Pilkey, a coastal geologist at Duke University. “But Please turn to page A13 The Future Question for Storm Victims: Can the Past Be Rebuilt? BY CHRISTOPHER RHOADS AND LESLIE SCISM Is Maya Cho in Love With Her Handsome Doctor? i i i Open to the West Now, Myanmar Airs Curious Breed of TV Soaps YANGON, Myanmar—“Wait, wait. What’s that buzzing noise?” Something’s bothering Henri Delorme, a French consul- tant working on the set of a new Myanmar television comedy called “Flowers and Butterflies.” “Is it a radio, or what?” he asks dur- ing a recent night shoot, grabbing a pair of headphones and clasping them to his ears as the actors pause. “It’s the monks,” says Dodie Gutierrez, his colleague from the Philippines. “There’s a Buddhist temple nearby. They’re chanting.” The two men ex- change a look and smile. “OK, it doesn’t matter. Allez, allez!” Mr. Delorme yells. Across the globe, multina- tional firms may be champing at the bit over an entire nation three times the size of Australia opening its doors to Western businesses after decades of mili- tary rule. But at least for some residents of this country, also known as Burma, a bigger issue may be what’s going to happen on the next episode of “The Sign of Love.” Imagine, if you can, the dawn of the soap-opera era for a nation of 64 million, whose only option in TV in the past was watching dreary army parades, stiff news shows and carefully scripted concerts. Now, Myan- mar, with six state- run networks and one private cable net- work, is trying to serve up a new breed of programming. But it isn’t easy, whether it’s handling the logis- tics of churning out five epi- sodes in a week in a place still lacking many modern conve- niences, or conforming to a cul- ture just developing its own brand of televised humor. “We don’t have much exper- tise at the moment, so we have to rely on outside help to get things done,” says Winn Maw, chief executive at state-run MRTV-4’s production partner, Forever Group. The commands spoken on the set of “Flowers and Butterflies” alone are mishmash of Myanmar, English and French, among oth- ers. Mr. Delorme, 48 years old, has worked on soap operas in In- donesia and the Philippines, and in many cases some of these countries are now exporting scriptwriters and production managers to help other nations nail the kind of juicy plotlines and cliffhangers advertisers adore. Mr. Gutierrez, 34, has worked on similar shows in the Philippines, and has also helped produce programming for inter- national networks. Together, they produced an angst-ridden drama loosely based on Romeo and Juliet Please turn to page A12 BY JAMES HOOKWAY Winn Maw Dina Long, the mayor of Sea Bright, N.J., said of the mounds of splintered wood in her downtown: ‘Our businesses were wiped away.’ Jason Andrew for The Wall Street Journal Obama visits Myanmar, plus Thailand and Cambodia.......... A12 > Classique Tourbillon BREGUET BOUTIQUES NEW YORK BEVERLY HILLS BAL HARBOUR LAS VEGAS TOLL FREE 877-891-1272 C M Y K Composite Composite MAGENTA CYAN BLACK P2JW322000-7-A00100-10011000000 CX,SC CXT,LAT P2JW322000-7-A00100-10011000000
Transcript of SATURDAY/SUNDAY,NOVEMBER 17 -18, 2012 WSJ.com...
YELLOW
VOL. CCLX NO. 118 * * * * * * *
SATURDAY/SUNDAY, NOVEMBER 17 - 18, 2012
HHHH $3 .00
WSJ.com
WEEKEND
LEARNINGTOLOVEVOLATILITY
REVIEW
Masteringthe
MismatchedLook
OFF DUTY
n The Dow industrials rose45.93 points to 12588.31 onFriday, reversing a morningslide, but the average is nowdown 755.20 points or 5.66%over the past four weeks. B5n Twinkies were beinghoarded by customers afterowner Hostess said that itwould close its bakeries andfire 18,000 workers. A1n Two banks settled SECcharges that they misled in-vestors on $1 billion of debtbacked by home loans. B1n Regional casino companyPenn National announced itis splitting its gambling andreal-estate operations. B4n Nintendo hopes to reverseits fortunes Sunday when itdebuts its first new video-game console in six years. B1n Activision said its “Call ofDuty: Black Ops II” video-game took in $500 million insales on its first day. B3n Tribune is expected toname Peter Liguori, a formerpresident of Fox Broadcast-ing, as its new CEO. B4n Netflix’s CEO disputed in-vestor Icahn’s statementthat the company should sellitself to a larger firm. B3n Ex-BBC chief Thompson istaking fire over when helearned about sex-abuse alle-gations against now-deadentertainer Jimmy Savile. B3
What’sNews
i i i
Business&Finance
World-Wide
i i i
CONTENTSBooks..................... C5-C19Cooking & Eating D2-4,6Corporate News B1,3-4Design............................. D8Gear & Gadgets D11-12Heard on the Street B16
Ideas Market............... C4Opinion.................. A15-17Stock Listings.... C11-12Style & Fashion.... D2-3Travel........................ D9-10Weather....................... B15Wknd Investor.....B7-10
s Copyright 2012 Dow Jones & Company.All Rights Reserved
InsideNOONAN A17
EgomaniaIn America’sTop Ranks
n Israel’s military readiedfor a Gaza ground invasion.Palestinian rockets strucknear Tel Aviv and Jerusalem,while Israel laid the ground-work for its first ground op-erations into Gaza since2009, calling up 75,000 re-servists. Neighboring Egyptescalated its own war ofwords against Israel. A9Egypt’s prime ministerQandil met with Hamas, ina bold show of support.n An oil and gas platformoff Louisiana’s coast ex-ploded, severely burning atleast four workers and leav-ing two of them missing. A3n Petraeus testified that hehad briefed members of Con-gress that there was “signifi-cant terrorist involvement”in the Sept. 11 attack on theU.S. consulate in Libya. A1n The two women at thecenter of the Petraeus scan-dal made social visits to staff-ers at the White House A6n The train crash that killedfour veterans in a Texas pa-rade drew scrutiny from U.S.and local investigators. Talesof heroism emerged. A4n Obama and congressionalleaders agreed Friday tomove quickly on talks to averta year-end fiscal crisis. A8n Obama’s historic visit toMyanmar this weekend ispart of a strategy to counter-balance China’s power. A12n Thousands of Jordaniansprotested for economic andother reforms. A10
WASHINGTON—Former Cen-tral Intelligence Agency DirectorDavid Petraeus said Friday thathe told Congress from the earli-est days that there was “signifi-cant terrorist involvement” inthe Sept. 11 attack on the U.S.consulate in Libya—adding tothe controversy over the admin-istration’s handling of the attack.
Mr. Petraeus, who resignedlast week after acknowledging an
extramarital affair, went to Con-gress on Friday to defend his oldagency’s role in the response tothe Benghazi, Libya, attack. Inhis closed-door testimony, hesaid that, in secret briefings withlawmakers soon after the attack,he had apprised them of thelikely involvement of a local mili-tant group, Ansar al-Sharia, saidRep. Peter King (R., N.Y.), de-scribing his comments.
Those comments rekindleddebate about the intelligencecommunity’s initial assessments
that the attack was a terroriststrike, and whether the Obamaadministration resisted calling ita terrorist act for political rea-sons.
The controversy also was ex-tended when some lawmakerssaid they had a different recol-lection of Mr. Petraeus’s earliercomments. Rep. King, who de-scribed Mr. Petraeus’s Friday tes-timony, said his recollection ofhis earlier conversations was dif-ferent.
“He said today that, at the
time, he was emphasizing therole of Ansar al-Sharia. But atthe time, my recollection is thathe was minimizing the role ofAnsar al-Sharia,’’ Mr. King toldreporters, referring to a localmilitant group sympathetic to alQaeda.
Mr. Petraeus spoke behindclosed doors Friday in long-awaited meetings with Houseand Senate intelligence commit-tee members. The Libya attackclaimed the lives of U.S. Ambas-sador Christopher Stevens and
three other Americans.Mr. Petraeus’s Friday testi-
mony, as outlined by lawmakerswho were present, was generallyconsistent with how U.S. officialshave described the shifting intel-ligence assessments of the con-sulate assault in interviews dat-ing back to the days after itoccurred. Still, his appearanceand testimony this week by topU.S. intelligence and law-enforce-ment officials haven’t bluntedquestions about the use of intel-
PleaseturntopageA6
BY SIOBHAN GORMANAND DEVLIN BARRETT
Petraeus Raised Terror LinkFormer CIA Chief, in Private Testimony, Prompts New Questions About Handling of Benghazi Attack
The seemingly imperishableTwinkie finally may have an ex-piration date.
Hostess Brands Inc., the 85-year-old maker of iconic treatssuch as Twinkies, Ding Dongs
and pantry staples like WonderBread, on Friday said it would goout of business after failing toreach agreement on wage andpension cuts with its bakers’union.
The Irving, Texas-based com-pany, which filed for Chapter 11for a second time in January,closed all factories and asked ajudge for permission to startproceedings that will mean joblosses for about 18,500 employ-ees and could result in morethan 30 brands being sold or dis-appearing. Liquidation firmGreat American Group Inc. andC. Dean Metropoulos & Co.,owner of beer brands includingPabst Blue Ribbon, have signaledinterest in Hostess’s brands.
The move endangers Ameri-can treats and snacks that havegraced supermarket shelves fordecades, but have had troublekeeping up with trends towardhealthier snacking. TheTwinkie—a sugary mix of richcream filling encased in a tubu-lar yellow cake—appeared oftenin lunchboxes and popular films.
It also showed organized la-bor’s willingness to test theboundaries of wage and benefitgivebacks. During and after the2008 financial crisis, auto work-ers and others readily agreed toconcessions deemed crucial forsurvival. But this year, workersat Caterpillar Inc. and Hostess
PleaseturntopageA6
By Rachel Feintzeig,Mike Spector
and Julie Jargon
TwinkieMakerHostessTo Close
SEA BRIGHT, N.J.—A week after Sandyburied this coastal town in six feet ofsand, a bus took residents to view the re-mains.
Small talk quickly turned to shock.“Dunkin’ Donuts is gone,” said one. “Ohmy God,” whispered a woman as theydrove up Ocean Avenue, the main dragthrough town. The business district wasdestroyed.
Finally, 77-year-old retiree Ira Korn-blut raised his fist. “We’re coming back,”he said, choking back tears. “We’re SeaBrighters!”
As towns up and down the easternseaboard take stock of tens of billions ofdollars in damage from one of the worststorms to hit the U.S., authorities andresidents speak publicly about their in-tent to rebuild.
“I promised to everybody that I wasspeaking on behalf of the country when Isaid we are going to be here until the re-building is complete, and I meant it,”President Barack Obama said Thursdayduring a visit to New York City’s batteredStaten Island.
But with the federal budget deep inthe red and government flood insurancestill straining to recover from Hurricane
Katrina, Sea Bright and other coastaltowns face questions over not just how torebuild in a way that defends lives andproperty against surging sea levels andmore intense storms, but whether to re-build at all.
Sandy’s destructive path has united anunlikely coalition of free-market thinktanks, environmentalists, business own-ers and insurers arguing the moral haz-ard of rebuilding in coastal zones thatmight best be returned to nature.
“It’s very difficult to get beyond thesympathy factor,” said Orrin Pilkey, acoastal geologist at Duke University. “But
PleaseturntopageA13
The Future Question for StormVictims: Can the Past Be Rebuilt?
BY CHRISTOPHER RHOADS AND LESLIE SCISM
Is Maya Cho in Love With Her Handsome Doctor?i i i
Open to the West Now, Myanmar Airs Curious Breed of TV Soaps
YANGON, Myanmar—“Wait,wait. What’s that buzzingnoise?” Something’s botheringHenri Delorme, a French consul-tant working on the set of a newMyanmar television comedycalled “Flowers and Butterflies.”“Is it a radio, orwhat?” he asks dur-ing a recent nightshoot, grabbing a pairof headphones andclasping them to hisears as the actorspause.
“It’s the monks,”says Dodie Gutierrez,his colleague fromthe Philippines.“There’s a Buddhisttemple nearby.They’re chanting.”
The two men ex-change a look and smile. “OK, itdoesn’t matter. Allez, allez!” Mr.Delorme yells.
Across the globe, multina-tional firms may be champing atthe bit over an entire nationthree times the size of Australia
opening its doors to Westernbusinesses after decades of mili-tary rule. But at least for someresidents of this country, alsoknown as Burma, a bigger issuemay be what’s going to happenon the next episode of “The Signof Love.”
Imagine, if you can, the dawnof the soap-opera erafor a nation of 64million, whose onlyoption in TV in thepast was watchingdreary army parades,stiff news shows andcarefully scriptedconcerts. Now, Myan-mar, with six state-run networks and oneprivate cable net-work, is trying toserve up a new breedof programming.
But it isn’t easy,whether it’s handling the logis-tics of churning out five epi-sodes in a week in a place stilllacking many modern conve-niences, or conforming to a cul-ture just developing its ownbrand of televised humor.
“We don’t have much exper-tise at the moment, so we haveto rely on outside help to getthings done,” says Winn Maw,chief executive at state-runMRTV-4’s production partner,Forever Group.
The commands spoken on theset of “Flowers and Butterflies”alone are mishmash of Myanmar,English and French, among oth-ers. Mr. Delorme, 48 years old,has worked on soap operas in In-donesia and the Philippines, andin many cases some of thesecountries are now exportingscriptwriters and productionmanagers to help other nationsnail the kind of juicy plotlinesand cliffhangers advertisersadore. Mr. Gutierrez, 34, hasworked on similar shows in thePhilippines, and has also helpedproduce programming for inter-national networks.
Together, they produced anangst-ridden drama looselybased on Romeo and Juliet
PleaseturntopageA12
BY JAMES HOOKWAY
Winn Maw
Dina Long, the mayor of Sea Bright, N.J., said of the mounds of splintered wood in her downtown: ‘Our businesses were wiped away.’
JasonAnd
rew
forTh
eWallS
treetJournal
Obama visits Myanmar, plusThailand and Cambodia.......... A12
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