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VOL. CCLXII NO. 112 * * * * * * * *

SATURDAY/SUNDAY, NOVEMBER 9 - 10, 2013

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IranTalksStrainMideastAlliances

WEEKEND

WHATMASSKILLERSWANT

REVIEW

in today'sin today's paperpaper

n The U.S. job market’s re-silience in October bolsteredexpectations that the Fedwill start slowing the pace ofits bond purchases. A1n The Dow industrials roseto a record 15761.78 on con-fidence the recovery couldsurvive any Fed rollback.Twitter fell 7.2% on Day 2. B1n SAC’s guilty plea that ac-knowledges insider tradingby some employees couldcost the firm $1.8 billion. B2n UBS effectively endedstate support by repurchas-ing assets handed over tothe Swiss central bank. B2n Barclays and DeutscheBank lost a U.K. court bid toblock investor suits over al-leged Libor manipulation. B2n Barrick Gold chairmanMunk won’t seek re-electionto the miner’s board. B1n Boeing warned it maybuild its 777X jetliner out-side Washington state amidsigns of union resistance. B3n An FDA ruling on generic-drug labels could open upthe industry to greater po-tential legal liability. B3n Tata Group is ending anearly $1.2 billion bid forOrient-Express Hotels. B4n Oil output at one of theworld’s biggest energy proj-ect in Kazakhstan won’t re-sume before next year. B4

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CONTENTSBooks........................ C5-10Cooking...................... D6-8Corporate News.... B1-4Design....................... D9-11Heard on Street.......B14In the Markets.......... B5

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InsideNOONAN A15

Mitch McConnellOn Shutdown,ObamaCare

As Iran and world powersstrove for an initial deal

to curb Iran’s nuclear pro-gram, Israel’s Netanyahuslammed a possible pact. A1n Enrollment fell 10% ormore at over 25% of U.S. pri-vate four-year schools from2010 through 2012. A1n The Obama administra-tion issued rules on equalcoverage of mental-healthand medical problems. A4n An appeals court blockeda health-law provision re-quiring employers to providebirth-control coverage. A2n A Nazi-era art dealer’scollection is at the center ofa probe into the works foundin his son’s apartment. A1n Officials are examiningwhy another crude-oil trainaccident, this time in Ala-bama, led to an explosion. A6n Supertyphoon Haiyanhit the Philippines, leavingdevastation in its wake. A7n Italy won a victory in itsfight against human traffick-ing with an arrest in thesinking of a migrant boat. A8n Spain is seeking peoplewho traveled with a womaninfected with Middle EastRespiratory Syndrome. A8n Two deadly attacks inChina have fueled debate onwhat is deemed terrorism. A7n Died: Manfred Rommel,84, ex-Stuttgart mayor andson of World War II FieldMarshal Erwin Rommel.

Israel tried to stave off anemerging agreement betweenIran and global powers aimed atpreventing Tehran from attain-ing a nuclear weapon, underlin-ing the chasm that has openedup between the Obama adminis-tration and its closest MiddleEast allies over how to deal withtheir nemesis.

Israeli Prime Minister Benja-min Netanyahu railed against theexpected accord in particularlyharsh terms Friday, calling onWestern allies to “reconsider’’after three meetings in two dayswith Secretary of State JohnKerry. President Barack Obamacalled the Israeli leader in an at-tempt to calm the furor.

“The deal that is being dis-cussed in Geneva right now is abad deal,’’ Mr. Netanyahu said inTel Aviv after meeting with Mr.Kerry. “Iran isn’t even requiredto take apart even one centri-fuge, but the international com-munity is relieving sanctions onIran.…I urged Secretary Kerrynot to rush to sign—to wait, toreconsider. To get a good deal.’’

Criticism surfaced in Wash-ington as well, where both Re-publican and Democratic sup-porters of Israel said theagreement in the works was fartoo easy on Iran.

Nonetheless, the U.S. and itsEuropean allies, who are part-ners in the deal with Iran, hopedto complete the agreement overthe weekend.

The interim accord is viewedPleaseturntopageA8

By Jay Solomon andLaurence Norman inGeneva and JoshuaMitnick in Tel Aviv

The U.S. job market showedsurprising resilience in Octoberdespite a partial governmentshutdown for half the month, re-kindling debate about whetherthe economy is strong enoughfor the Federal Reserve to rein inits signature easy-money pro-gram.

The Labor Department re-ported that U.S. employers added204,000 jobs last month, defyingexpectations for weaker hiringamid the shutdown and a debt-

ceiling fight that knocked downconsumer and business confi-dence. The jobless rate ticked up0.1 percentage point to 7.3%largely due to the shutdown,which furloughed hundreds ofthousands of workers.

Friday’s report bolstered ex-pectations that the Fed will soonstart slowing the pace of its $85billion a month in bond pur-chases, possibly as early as itsnext meeting Dec. 17-18. The pro-gram was launched in Septemberof last year in an effort to holddown long-term interest ratesand boost investment and hiring.

“There is some vibrancy andstrength in the U.S. economy,

which is likely to manifest itselfin 2014,” said Nathan Sheets, aCitigroup economist and formerhead of the Fed’s internationalresearch division.

Stock prices leapt Friday onthe new sign of vigor in the U.S.economy and the dollar strength-ened, while interest rates movedhigher, as they typically do amidsigns of strengthening growth.The Dow Jones Industrial Aver-age finished up 167.80 points or1.08%, to its latest record at15761.78. Treasury yields rose.

But the seemingly strong re-port—itself marred by statisticalquirks related to the shutdown—comes amid a blurry global

backdrop that could complicatethe Fed’s decision. The EuropeanCentral Bank on Thursday low-ered its benchmark interest ratein response to flagging Europeaninflation. U.S. inflation is alsowell below the Fed’s 2% target.

Central banks in Peru and theCzech Republic also took mea-sures this past week to boosttheir economies amid low infla-tion. And Standard & Poor’s onFriday cut its rating on Frenchgovernment debt.

PleaseturntopageA6

Jobs Strength Puts Fed on Hot SeatShutdown-Related Quirks, Global Growth Hiccups Complicate Decision Making on Easy Money

BERLIN—In the final days ofWorld War II, Dresden art dealerHildebrand Gurlitt packed hisfamily, a supply of firewood andthe works of some of the great-

est masters of 20th century artinto a truck and headed west.

As the Soviet army ap-proached from the east, he drovefor two days along bomb-cra-

tered roads into the hill countryof northern Bavaria. His destina-tion was a castle called SchlossAschbach, where the local baronagreed to shelter Mr. Gurlitt’sfamily and his art.

That collection, much of it be-lieved to have been acquired byMr. Gurlitt in the years heworked as an art dealer for theNazis, is now at the center of aninvestigation into the hoard ofabout 1,400 valuable works dis-covered in the Munich apart-ment of Mr. Gurlitt’s now-elderly

son, Cornelius.Art historians hail the find as

one of the greatest discoveriesof lost art since the war. While ithas given new hope to the heirsof Jews whose artwork wasseized by the Nazis, it has raiseduncomfortable questions forGermany and for the close-knitworld of European art dealers.

Why have German authoritiesremained silent about the findfor nearly two years? And givenHildebrand Gurlitt’s work for the

PleaseturntopageA12

MASTERPIECE MYSTERY

The Strange Tale of Nazis,Mr. Gurlitt and the Lost Art

Spring Hill College in Mobile,Ala., was founded in 1830. It hasgraduated governors and admi-rals. Martin Luther King Jr.praised it for its early efforts atintegration in his “Letter fromBirmingham Jail.”

None of that august historyprotected it from plummetingenrollment last year. So, to in-duce prospective students toconsider its $170,000 stickerprice for a four-year education,Spring Hill began offering $1,000scholarships for taking a campustour.

“We’re at a time when enroll-ment is the No. 1 driver,” saidBob Stewart, the school’s vicepresident for admissions and fi-nancial aid. “We needed to havesome game changers to bring innew students.”

Spring Hill was caught in thesame tailspin that many U.S. pri-vate colleges are facing as theyendure plummeting enrollmentamong price-conscious students.

From 2010 through 2012,freshman enrollment at morethan a quarter of U.S. privatefour-year schools declined 10%or more, according to federaldata The Wall Street Journal an-alyzed. From 2006 through2009, fewer than one in five ex-perienced a similar decline.

The trajectory reflects demo-graphic and technologicalchanges, along with questionsabout a college degree’s valuethat are challenging centuries-old business models. The impactis uneven: Some wealthy, selec-tive private colleges are flourish-ing, while many others suffer.

Schools on the losing end areresponding with closures, lay-offs, cutbacks, mergers and newrecruitment strategies. Many seethese as the first signs of ashakeout that will reorder theindustry.

“I think it’s fair to say 30% ofthese private schools won’t exist

PleaseturntopageA5

BY DOUGLAS BELKIN

Fast-Moving Typhoon Haiyan Crashes Through Asia

ANGUISH ASHORE: Typhoon Haiyan hit the city of Legaspi, south of Manila, above, on Friday, forcing the evacuation of more than 748,000 peopleand killing at least 100 as it moved across the Philippines, officials said. The storm was forecast to head toward Vietnam over the weekend. A7

Charism

Sayat/AgenceFrance-Presse/Getty

Images

By MaryM. Lane,Harriet Torry and

Matthew Karnitschnig

A Strong MonthNonfarm payrolls, monthly change

Source: Labor Dept. The Wall StreetJournal

Note: Seasonally adjusted data

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100

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thousand

O N D J F M A M J J A S O

Hire NumbersNonfarm payrolls, monthly change

Source: Labor Department

The Wall Street Journal

Note: Data are seasonally adjusted.

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thousand

’132012

October

+204,000

Labor absorbs shutdown......... A6 Dow rallies 167.80 points......... B1 Heard on the Street.................. B14

What’s That Beguiling Scent?Could It Be Eau de Baton Rouge?

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Colleges, Smelling Opportunity, DabbleIn Fragrances; Hints of Oak, Not Corn Dogs

When word got out in Junethat Texas A&M University wascoming out with its own brandof fragrances this fall, studentsand alumni took to Twitter tosuggest some scents. Amongthem: “Bat Feces” and“Chilifest Stink.”

But for Masik Colle-giate Fragrances, theNew York company thatdeveloped the school’scologne and perfume,Texas A&M conjuressomething more aro-matic. It describes themen’s fragrance as “re-freshing top notes ofItalian lemon, bergamotand iced pineapple”that open into “a bodyof vivid florals, raw nutmeg andcinnamon.”

The scent, Masik says, seeksto capture the “timeless honorof Aggie traditions” and the

“crazed adoration of Aggie ma-roon,” one of the school colors.

Though some might associatecollege with olfactory assaultslike stale beer and sweaty lockerrooms, more schools smell op-portunity in bottling a signaturescent. Masik released fragrancesfor six other schools this fall, in-

cluding the Universityof Kentucky and Clem-son University, bringingits total lineup to 17colleges, with more onthe way, says chief ex-ecutive Katie Masich.

The University ofNotre Dame also cameout with a scent thisfall, produced by theCloudbreak Group,which created a co-logne and a perfumefor the New York Yan-

kees that the company says gar-nered nearly $10 million in retailsales in 2012.

The fragrances are only thePleaseturntopageA10

BY ARIAN CAMPO-FLORESAND MEREDITH RUTLAND

Scent of an Aggie

By Eric Morath,Jon Hilsenrath

and Sudeep Reddy

PrivateCollegesSqueezed

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November 7th-17th 2013

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