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YELLOW VOL. CCLXII NO. 112 ******** SATURDAY/SUNDAY, NOVEMBER 9 - 10, 2013 HHHH $2.00 WSJ.com IranTalks Strain Mideast Alliances WEEKEND WHAT MASS KILLERS WANT REVIEW in today's in today's paper paper n The U.S. job market’s re- silience in October bolstered expectations that the Fed will start slowing the pace of its bond purchases. A1 n The Dow industrials rose to a record 15761.78 on con- fidence the recovery could survive any Fed rollback. Twitter fell 7.2% on Day 2. B1 n SAC’s guilty plea that ac- knowledges insider trading by some employees could cost the firm $1.8 billion. B2 n UBS effectively ended state support by repurchas- ing assets handed over to the Swiss central bank. B2 n Barclays and Deutsche Bank lost a U.K. court bid to block investor suits over al- leged Libor manipulation. B2 n Barrick Gold chairman Munk won’t seek re-election to the miner’s board. B1 n Boeing warned it may build its 777X jetliner out- side Washington state amid signs of union resistance. B3 n An FDA ruling on generic- drug labels could open up the industry to greater po- tential legal liability. B3 n Tata Group is ending a nearly $1.2 billion bid for Orient-Express Hotels. B4 n Oil output at one of the world’s biggest energy proj- ect in Kazakhstan won’t re- sume before next year. B4 What’s News i i i Business & Finance World-Wide i i i CONTENTS Books........................ C5-10 Cooking...................... D6-8 Corporate News.... B1-4 Design....................... D9-11 Heard on Street....... B14 In the Markets.......... B5 Opinion.................. A13-15 Sports............................ A16 Stock Listings.... B10,12 Style & Fashion.... D4,5 Travel ........................... D1-3 Weather Watch...... B13 Wknd Investor.... B7-10 s Copyright 2013 Dow Jones & Company. All Rights Reserved > Inside NOONAN A15 Mitch McConnell On Shutdown, ObamaCare A s Iran and world powers strove for an initial deal to curb Iran’s nuclear pro- gram, Israel’s Netanyahu slammed a possible pact. A1 n Enrollment fell 10% or more at over 25% of U.S. pri- vate four-year schools from 2010 through 2012. A1 n The Obama administra- tion issued rules on equal coverage of mental-health and medical problems. A4 n An appeals court blocked a health-law provision re- quiring employers to provide birth-control coverage. A2 n A Nazi-era art dealer’s collection is at the center of a probe into the works found in his son’s apartment. A1 n Officials are examining why another crude-oil train accident, this time in Ala- bama, led to an explosion. A6 n Supertyphoon Haiyan hit the Philippines, leaving devastation in its wake. A7 n Italy won a victory in its fight against human traffick- ing with an arrest in the sinking of a migrant boat. A8 n Spain is seeking people who traveled with a woman infected with Middle East Respiratory Syndrome. A8 n Two deadly attacks in China have fueled debate on what is deemed terrorism. A7 n Died: Manfred Rommel, 84, ex-Stuttgart mayor and son of World War II Field Marshal Erwin Rommel. Israel tried to stave off an emerging agreement between Iran and global powers aimed at preventing Tehran from attain- ing a nuclear weapon, underlin- ing the chasm that has opened up between the Obama adminis- tration and its closest Middle East allies over how to deal with their nemesis. Israeli Prime Minister Benja- min Netanyahu railed against the expected accord in particularly harsh terms Friday, calling on Western allies to “reconsider’’ after three meetings in two days with Secretary of State John Kerry. President Barack Obama called the Israeli leader in an at- tempt to calm the furor. “The deal that is being dis- cussed in Geneva right now is a bad deal,’’ Mr. Netanyahu said in Tel Aviv after meeting with Mr. Kerry. “Iran isn’t even required to take apart even one centri- fuge, but the international com- munity is relieving sanctions on Iran.…I urged Secretary Kerry not to rush to sign—to wait, to reconsider. To get a good deal.’’ Criticism surfaced in Wash- ington as well, where both Re- publican and Democratic sup- porters of Israel said the agreement in the works was far too easy on Iran. Nonetheless, the U.S. and its European allies, who are part- ners in the deal with Iran, hoped to complete the agreement over the weekend. The interim accord is viewed Please turn to page A8 By Jay Solomon and Laurence Norman in Geneva and Joshua Mitnick in Tel Aviv The U.S. job market showed surprising resilience in October despite a partial government shutdown for half the month, re- kindling debate about whether the economy is strong enough for the Federal Reserve to rein in its signature easy-money pro- gram. The Labor Department re- ported that U.S. employers added 204,000 jobs last month, defying expectations for weaker hiring amid the shutdown and a debt- ceiling fight that knocked down consumer and business confi- dence. The jobless rate ticked up 0.1 percentage point to 7.3% largely due to the shutdown, which furloughed hundreds of thousands of workers. Friday’s report bolstered ex- pectations that the Fed will soon start slowing the pace of its $85 billion a month in bond pur- chases, possibly as early as its next meeting Dec. 17-18. The pro- gram was launched in September of last year in an effort to hold down long-term interest rates and boost investment and hiring. “There is some vibrancy and strength in the U.S. economy, which is likely to manifest itself in 2014,” said Nathan Sheets, a Citigroup economist and former head of the Fed’s international research division. Stock prices leapt Friday on the new sign of vigor in the U.S. economy and the dollar strength- ened, while interest rates moved higher, as they typically do amid signs of strengthening growth. The Dow Jones Industrial Aver- age finished up 167.80 points or 1.08%, to its latest record at 15761.78. Treasury yields rose. But the seemingly strong re- port—itself marred by statistical quirks related to the shutdown— comes amid a blurry global backdrop that could complicate the Fed’s decision. The European Central Bank on Thursday low- ered its benchmark interest rate in response to flagging European inflation. U.S. inflation is also well below the Fed’s 2% target. Central banks in Peru and the Czech Republic also took mea- sures this past week to boost their economies amid low infla- tion. And Standard & Poor’s on Friday cut its rating on French government debt. Please turn to page A6 Jobs Strength Puts Fed on Hot Seat Shutdown-Related Quirks, Global Growth Hiccups Complicate Decision Making on Easy Money BERLIN—In the final days of World War II, Dresden art dealer Hildebrand Gurlitt packed his family, a supply of firewood and the works of some of the great- est masters of 20th century art into a truck and headed west. As the Soviet army ap- proached from the east, he drove for two days along bomb-cra- tered roads into the hill country of northern Bavaria. His destina- tion was a castle called Schloss Aschbach, where the local baron agreed to shelter Mr. Gurlitt’s family and his art. That collection, much of it be- lieved to have been acquired by Mr. Gurlitt in the years he worked as an art dealer for the Nazis, is now at the center of an investigation into the hoard of about 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 discoveries of lost art since the war. While it has given new hope to the heirs of Jews whose artwork was seized by the Nazis, it has raised uncomfortable questions for Germany and for the close-knit world of European art dealers. Why have German authorities remained silent about the find for nearly two years? And given Hildebrand Gurlitt’s work for the Please turn to page A12 MASTERPIECE MYSTERY The Strange Tale of Nazis, Mr. Gurlitt and the Lost Art Spring Hill College in Mobile, Ala., was founded in 1830. It has graduated governors and admi- rals. Martin Luther King Jr. praised it for its early efforts at integration in his “Letter from Birmingham Jail.” None of that august history protected it from plummeting enrollment last year. So, to in- duce prospective students to consider its $170,000 sticker price for a four-year education, Spring Hill began offering $1,000 scholarships for taking a campus tour. “We’re at a time when enroll- ment is the No. 1 driver,” said Bob Stewart, the school’s vice president for admissions and fi- nancial aid. “We needed to have some game changers to bring in new students.” Spring Hill was caught in the same tailspin that many U.S. pri- vate colleges are facing as they endure plummeting enrollment among price-conscious students. From 2010 through 2012, freshman enrollment at more than a quarter of U.S. private four-year schools declined 10% or more, according to federal data The Wall Street Journal an- alyzed. From 2006 through 2009, fewer than one in five ex- perienced a similar decline. The trajectory reflects demo- graphic and technological changes, along with questions about a college degree’s value that are challenging centuries- old business models. The impact is uneven: Some wealthy, selec- tive private colleges are flourish- ing, while many others suffer. Schools on the losing end are responding with closures, lay- offs, cutbacks, mergers and new recruitment strategies. Many see these as the first signs of a shakeout that will reorder the industry. “I think it’s fair to say 30% of these private schools won’t exist Please turn to page A5 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 people and 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/Agence France-Presse/Getty Images By Mary M. Lane, Harriet Torry and Matthew Karnitschnig Hire Numbers Nonfarm payrolls, monthly change Source: Labor Department The Wall Street Journal Note: Data are seasonally adjusted. 350 0 50 100 150 200 250 300 thousand ’13 2012 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? i i i Colleges, Smelling Opportunity, Dabble In Fragrances; Hints of Oak, Not Corn Dogs When word got out in June that Texas A&M University was coming out with its own brand of fragrances this fall, students and alumni took to Twitter to suggest some scents. Among them: “Bat Feces” and “Chilifest Stink.” But for Masik Colle- giate Fragrances, the New York company that developed the school’s cologne and perfume, Texas A&M conjures something more aro- matic. It describes the men’s fragrance as “re- freshing top notes of Italian lemon, bergamot and iced pineapple” that open into “a body of vivid florals, raw nutmeg and cinnamon.” The scent, Masik says, seeks to capture the “timeless honor of Aggie traditions” and the “crazed adoration of Aggie ma- roon,” one of the school colors. Though some might associate college with olfactory assaults like stale beer and sweaty locker rooms, more schools smell op- portunity in bottling a signature scent. Masik released fragrances for six other schools this fall, in- cluding the University of Kentucky and Clem- son University, bringing its total lineup to 17 colleges, with more on the way, says chief ex- ecutive Katie Masich. The University of Notre Dame also came out with a scent this fall, produced by the Cloudbreak Group, which created a co- logne and a perfume for the New York Yan- kees that the company says gar- nered nearly $10 million in retail sales in 2012. The fragrances are only the Please turn to page A10 BY ARIAN CAMPO-FLORES AND MEREDITH RUTLAND Scent of an Aggie By Eric Morath, Jon Hilsenrath and Sudeep Reddy Private Colleges Squeezed On display at the Breguet Boutique 711 Fifth Avenue, between 55 th & 56 th streets l 646 692-6469 November 7 th -17 th 2013 EXHIBITION Breguet,the innovator. Inventor of the Tourbillon. C M Y K Composite Composite MAGENTA CYAN BLACK P2JW313000-8-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WE BG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO P2JW313000-8-A00100-10FEEB7178F
Transcript of ******** $2.00 JobsStrengthPuts...
YELLOW
VOL. CCLXII NO. 112 * * * * * * * *
SATURDAY/SUNDAY, NOVEMBER 9 - 10, 2013
HHHH $2 .00
WSJ.com
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
What’sNews
i i i
Business & Finance
World-Wide
i i i
CONTENTSBooks........................ C5-10Cooking...................... D6-8Corporate News.... B1-4Design....................... D9-11Heard on Street.......B14In the Markets.......... B5
Opinion.................. A13-15Sports............................ A16Stock Listings.... B10,12Style & Fashion.... D4,5Travel........................... D1-3Weather Watch...... B13Wknd Investor.... B7-10
s Copyright 2013 Dow Jones & Company.All Rights Reserved
>
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
350
0
50
100
150
200
250
300
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.
350
0
50
100
150
200
250
300
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?
i i i
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
On display at the Breguet Boutique711 Fifth Avenue, between 55th & 56th streets l 646 692-6469
November 7th-17th 2013
EXHIBITIONBreguet, the innovator. Inventor of the Tourbillon.
CM Y K CompositeCompositeMAGENTA CYAN BLACK
P2JW313000-8-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO
P2JW313000-8-A00100-10FEEB7178F
