1
YELLOW ***** MONDAY, DECEMBER 23, 2013 ~ VOL. CCLXII NO. 148 WSJ.com HHHH $2.00 Last week: DJIA 16221.14 À 465.78 3.0% NASDAQ 4104.74 À 2.6% NIKKEI 15870.42 À 3.0% STOXX 600 321.14 À 3.7% 10-YR. TREASURY g 5/32 , yield 2.886% OIL $99.32 À $2.39 EURO $1.3673 YEN 104.09 CONTENTS Abreast of the Market C1 Corporate News B2-6,9 Global Finance............ C3 Heard on the Street C8 Law Journal ................ B8 Media............................... B7 Markets Dashboard C4 Opinion.................. A13-15 Sports............................ B10 Moving the Market C2 U.S. News................. A2-6 Weather Watch........ B9 World News.......... A7-11 s Copyright 2013 Dow Jones & Company. All Rights Reserved > What’s News i i i World-Wide n The U.S. military evacu- ated American citizens from a rebel-held town in South Su- dan as ethnic clashes risked splitting the country. A1 n Germany guided talks with the Kremlin about freeing oil tycoon Khodorkovsky, people close to the process said. A7 n Electroconvulsive therapy erased distressing memories in patients, a study in Nature Neuroscience reported. A1 n Turkey’s premier dismissed a corruption probe as a plot to topple him as he blasted West- ern allies and ex-backers. A8 n Syrian aircraft pounded rebel-held areas of Aleppo, kill- ing at least 32 people as the re- gime bombing continued. A11 n Spain moved to limit abortion rights, sparking protests by tens of thousands of people in 21 cities. A11 n Bangladeshi police leveled homicide charges against the owner of a garment factory where fire killed 112. A10 n An Egyptian court jailed three leading activists for vi- olating a new law that tightly restricts protests. A10 n Crowds of protesters swarmed Bangkok in a bid to force Thailand’s premier to postpone elections. A10 n Storms pounded much of the U.S. with wind, rain and ice, but parts of the Northeast en- joyed record warm weather. A3 n An ice storm knocked out power to hundreds of thou- sands in eastern Canada. A11 n Died: Edgar Bronfman, 84, former Seagram head, philan- thropist and Jewish leader. A11 i i i A pple plans to start offer- ing the iPhone on China Mobile’s network starting Jan. 17, giving Apple access to over 700 million subscribers. B1 n Goldman plans to contrib- ute up to 20% of a new real- estate-backed fund as the firm navigates around new curbs under the Volcker rule. C1 n Money managers expect stocks to rise in 2014 but at a slower pace. The S&P 500 is on track to post its biggest percentage gain since 1997. C1 n Paulson’s hedge fund sold its Washington Mutual bonds after J.P. Morgan filed a suit last week seeking billions from the bank’s 2008 failure. C3 n Gasoline futures are climb- ing amid unseasonably strong demand. Prices surged 5.9% last week to a three-month high. C5 n Fortress is in talks with banks for financing to ac- quire wireless firm Light- Squared out of bankruptcy. B9 n YRC is close to raising funds to cover debt payments as it seeks to persuade employees to extend their contracts. B2 n Tiffany must pay Swatch nearly $450 million in dam- ages over a failed partnership, an arbitration panel said. B3 n The FCC approved two big media deals by Gannett and Tribune despite complaints of industry consolidation. B7 n Target’s customer traffic fell this weekend in the wake of a massive data breach. B3 n The CFTC voted to extend some of its swaps rules to overseas companies. C5 Business & Finance JASON GAY Top 10 in Sports MARKETPLACE The Cost of Free Returns USA Today Sports/Reuters (far left); Getty Images Monday is the final day for consumers to get new health coverage that takes effect when the new year arrives, leaving thousands of people racing to sign up in time—and health in- surers trying to figure out whether the federal health law will work in the way they had hoped. The number of Americans en- rolling continues to fall short of the goals the Obama administra- tion has laid out, which is a problem for the White House. It also represents a problem for the insurance industry, which calculated that the prospect of millions of new customers brought their way by the Afford- able Care Act and its coverage requirements would make up for any disruption that came along with the law. Karen Ignagni, the industry’s top representative in Washington, spent the weekend managing the fallout after the administration overhauled its approach to people who buy cov- erage on the individual market. The insurers Ms. Ignagni rep- resents as head of the industry’s main lobbying group, America’s Health Insurance Plans, got late notice Thursday night of the new rules: People dumped by their insurers could buy bare- bones “catastrophic” plans or get a hardship exemption from Please turn to page A4 BY ELIZABETH WILLIAMSON AND LOUISE RADNOFSKY Health Deadline Rattles Industry Rule Change Poses Test for Insurers NAIROBI, Kenya—The U.S. mil- itary on Sunday rushed to evacu- ate American citizens from a rebel-held town in South Sudan, the latest sign that a country the U.S. helped create might be spi- raling toward civil war. About 15 Americans were evacuated on Sunday from the town of Bor in helicopters, ac- cording to a State Department spokeswoman. The flights were part of a broader exodus of inter- national workers and South Su- danese from fighting between factions of South Sudan’s army. The U.S. has evacuated about 380 U.S. officials and private citizens, said the spokeswoman, Jen Psaki. A political power struggle be- tween former South Sudanese Vice President Riek Machar and President Salva Kiir ahead of 2015 elections appears to have set off the violence. It quickly de- scended into ethnic clashes that risk splitting the country of 10 million. By Sunday, rebel factions al- lied with Mr. Machar, a member of the Nuer ethnic group, had so- lidified control of territory they seized in a week of gunbattles with government forces that have left 500 dead, according to figures provided by South Su- dan’s military, other officials and the U.N. Mr. Kiir, from the largest eth- nic group, the Dinka, said last week that his former deputy and rival for the presidency had at- tempted a coup and been beaten back. Mr. Machar denied an at- tempt to overthrow Mr. Kiir but then said it was time for Mr. Kiir to go. The dispute quickly widened to Bor, the capital of South Su- Please turn to page A8 BY HEIDI VOGT South Sudan Refugees Swell As Americans Are Evacuated Wesley Fisher has been con- sumed for the past 25 years by a seemingly impossible question: What became of the many cultural treasures stolen from Jews during the Holocaust? Then last month, while poring over headline-grabbing images of art seized by authorities from a Munich apartment, he had an “Ah- ha” moment. A Toulouse-Lautrec print, of a dancing couple, seemed eerily familiar. Mr. Fisher is the research di- rector for the Conference on Jew- ish Material Claims Against Ger- many, the New York-based organization tasked with compen- sating Holocaust victims for Nazi persecution. For years, he has attempted to chronicle the Hitler regime’s looting across Europe and the former Soviet Union. In particular, he fought to cre- ate a database that would collate far-flung records on works taken by the Nazis from French Jews. “I was trying to push the idea that property theft was an integral part of the geno- cide against the Jews,” says Mr. Fisher, 69 years old. “But our soci- ety concentrated on the murders, the killings.” Now, the obscure database could be instrumental in helping to identify some owners of the roughly 1,400 works seized last month from the Munich apart- ment of Cornelius Gurlitt, son of a prominent Nazi art dealer. Within an hour of spotting the Toulouse-Lautrec print, Mr. Fisher consulted the database and found a possible match—a lithograph of the same approximate size and bearing the same title, “La Goulue Dansant avec Valentin Le Dé- sossé,” as the newly discovered print. The lively work, according to Nazi records in the database, had belonged to Esther Van Cleef, Jewish matriarch of the illustrious Van Cleef & Arpels jew- elry dynasty, and confiscated during the war. Eventu- ally, the Germans brought it to the Jeu de Paume Please turn to page A12 BY LUCETTE LAGNADO THE ART DETECTIVE Quest to Track Nazi Loot Stirs Complex Emotions Scientists have zapped an electrical current to people’s brains to erase distressing mem- ories, part of an ambitious quest to better treat ailments such as mental trauma, psychiatric dis- orders and drug addiction. In an experiment, patients were first shown a troubling story, in words and pictures. A week later they were reminded about it and given electroconvul- sive therapy, formerly known as electroshock. That completely wiped out their recall of the dis- tressing narrative. “It’s a pretty strong effect. We observed it in every subject,” said Marijn Kroes, neuroscientist at Radboud University Nijmegen in the Netherlands and lead au- thor of the study, published Sun- day in the journal Nature Neuro- science. The experiment recalls the plot of the movie “Eternal Sun- shine of the Spotless Mind,” in which an estranged couple erase memories of each other. Science has tinkered with similar notions for years. In ex- posure treatment, repetitive ex- posure to a phobia in a non- threatening way is designed to help patients confront their fears and gradually weaken the fear response, a process known as extinction. Some researchers also are experimenting with an- tianxiety drug propranolol. The hope is that one day it may be possible to selectively eliminate a person’s unwanted memories or associations linked to smok- ing, drug-taking or emotional trauma. Scientists used to think that once a memory took hold in the brain, it was permanently stored and couldn’t be altered. People with anxiety disorders were taught to overcome their fears by creating a new memory. Yet the old memory remained and could be reactivated at any time. About a decade ago, scientists made a surprising discovery. Please turn to page A6 BY GAUTAM NAIK Unwanted Memories Erased in Experiment Turkey-U.S. Relations Take a Hit as Corruption Scandal Stirs Unrest STREET FIGHT: Turkey’s prime minister threatened Sunday to downgrade ties with the U.S., claiming that Western powers are fueling a bribery investigation that implicated his government, as thousands of demonstrators flooded Istanbul’s streets calling for the cabinet to resign. A8 Bulent Kilic/Agence France-Presse / Getty Images The North Pole may have Santa Claus, but Christmas at the bot- tom of the earth comes with a race where runners vie for a cov- eted prize: a long, hot shower. Nearly all of the 125 scientists, engineers and odd-jobbers who live at the American South Pole station at this time of year brave the cold for the annual Race Around the World. It covers a two- to three-mile route, around multimillion-dollar research proj- ects and over a snow-covered air- plane runway before looping around the geographic pole, ex- actly 90 degrees south of the equator. The racecourse changes year to year depending on who is around to map it out, and participants use cross-country skis, bi- cycles and sometimes makeshift floats to get to the finish line. Two years ago, on a windy Christmas, one com- petitor juggled along the course. Most Po- lies, as residents are called, race for fun and the right to claim that they celebrated the holiday in every time zone on the planet. Yet some runners compete to win, spending weeks training in frigid, icy conditions. Rickey Gates, a profes- sional runner, got a job washing dishes at the Pole to participate in the race and secure a berth in the McMurdo marathon, which takes place at another Amer- ican Antarctic station, more than 800 miles away. He ran outside every day for an hour or two at the Pole, covering five to 15 miles, and won the race in 2010 on a day when temperatures got as high as 10 below zero—“actu- ally quite balmy,” he said. The av- Please turn to page A12 BY RACHEL FEINTZEIG At South Pole, Christmas Runners Vie for Steamy Prize i i i Winner of Race in Frigid Temperatures Gets a Long, Hot Shower Rickey Gates Deep Freeze Hits Holiday Travel ICY SLICK: Cars spun out on the side of a highway on Sunday near Port Washington, Wis., as up to 8 inches of snow accumulated in the area. Storms snarled holiday-season travel in much of the U.S. A3 Milwaukee Journal Sentinel/Associated Press Image of Toulouse-Lautrec work provided by the German prosecutor. Augsburg Public Prosecutor’s Office/European Pressphoto Agency C M Y K Composite Composite MAGENTA CYAN BLACK P2JW357000-5-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,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 P2JW357000-5-A00100-1--------XA

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YELLOW

* * * * * MONDAY, DECEMBER 23, 2013 ~ VOL. CCLXII NO. 148 WSJ.com HHHH $2 .00

Lastweek: DJIA 16221.14 À 465.78 3.0% NASDAQ 4104.74 À 2.6% NIKKEI 15870.42 À 3.0% STOXX600 321.14 À 3.7% 10-YR. TREASURY g 5/32 , yield 2.886% OIL $99.32 À $2.39 EURO $1.3673 YEN 104.09

CONTENTSAbreast of the Market C1Corporate News B2-6,9Global Finance............ C3Heard on the Street C8Law Journal................ B8Media............................... B7

Markets Dashboard C4Opinion.................. A13-15Sports............................ B10Moving the Market C2U.S. News................. A2-6Weather Watch........ B9World News.......... A7-11

s Copyright 2013 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-Widen The U.S. military evacu-ated American citizens from arebel-held town in South Su-dan as ethnic clashes riskedsplitting the country. A1n Germany guided talks withthe Kremlin about freeing oiltycoon Khodorkovsky, peopleclose to the process said. A7n Electroconvulsive therapyerased distressing memoriesin patients, a study in NatureNeuroscience reported. A1nTurkey’s premier dismisseda corruption probe as a plot totopple him as he blastedWest-ern allies and ex-backers. A8nSyrian aircraft poundedrebel-held areas of Aleppo, kill-ing at least 32 people as the re-gime bombing continued. A11n Spain moved to limitabortion rights, sparkingprotests by tens of thousandsof people in 21 cities. A11n Bangladeshi police leveledhomicide charges against theowner of a garment factorywhere fire killed 112. A10n An Egyptian court jailedthree leading activists for vi-olating a new law thattightly restricts protests. A10n Crowds of protestersswarmed Bangkok in a bid toforce Thailand’s premier topostpone elections. A10nStorms poundedmuch ofthe U.S. with wind, rain and ice,but parts of the Northeast en-joyed record warmweather. A3n An ice storm knocked outpower to hundreds of thou-sands in eastern Canada. A11n Died: Edgar Bronfman, 84,former Seagram head, philan-thropist and Jewish leader. A11

i i i

Apple plans to start offer-ing the iPhone on China

Mobile’s network starting Jan.17, giving Apple access to over700 million subscribers. B1n Goldman plans to contrib-ute up to 20% of a new real-estate-backed fund as the firmnavigates around new curbsunder the Volcker rule. C1nMoney managers expectstocks to rise in 2014 but at aslower pace. The S&P 500 ison track to post its biggestpercentage gain since 1997. C1n Paulson’s hedge fund soldits Washington Mutual bondsafter J.P. Morgan filed a suitlast week seeking billions fromthe bank’s 2008 failure. C3nGasoline futures are climb-ing amid unseasonably strongdemand. Prices surged 5.9% lastweek to a three-month high. C5n Fortress is in talks withbanks for financing to ac-quire wireless firm Light-Squared out of bankruptcy. B9nYRC is close to raising fundsto cover debt payments as itseeks to persuade employeesto extend their contracts. B2n Tiffany must pay Swatchnearly $450 million in dam-ages over a failed partnership,an arbitration panel said. B3n The FCC approved two bigmedia deals by Gannett andTribune despite complaintsof industry consolidation. B7n Target’s customer trafficfell this weekend in the wakeof a massive data breach. B3n The CFTC voted to extendsome of its swaps rules tooverseas companies. C5

Business&Finance

JASON GAY

Top 10 in SportsMARKETPLACE The Cost of Free Returns

USA

TodaySp

orts/R

euters

(far

left);Getty

Images

Monday is the final day forconsumers to get new healthcoverage that takes effect whenthe new year arrives, leavingthousands of people racing tosign up in time—and health in-surers trying to figure outwhether the federal health lawwill work in the way they hadhoped.

The number of Americans en-rolling continues to fall short ofthe goals the Obama administra-tion has laid out, which is aproblem for the White House.

It also represents a problemfor the insurance industry, whichcalculated that the prospect ofmillions of new customersbrought their way by the Afford-able Care Act and its coveragerequirements would make up forany disruption that came alongwith the law. Karen Ignagni, theindustry’s top representative inWashington, spent the weekendmanaging the fallout after theadministration overhauled itsapproach to people who buy cov-erage on the individual market.

The insurers Ms. Ignagni rep-resents as head of the industry’smain lobbying group, America’sHealth Insurance Plans, got latenotice Thursday night of thenew rules: People dumped bytheir insurers could buy bare-bones “catastrophic” plans orget a hardship exemption from

PleaseturntopageA4

BY ELIZABETH WILLIAMSONAND LOUISE RADNOFSKY

HealthDeadlineRattlesIndustryRule Change PosesTest for Insurers

NAIROBI, Kenya—The U.S. mil-itary on Sunday rushed to evacu-ate American citizens from arebel-held town in South Sudan,the latest sign that a country theU.S. helped create might be spi-raling toward civil war.

About 15 Americans wereevacuated on Sunday from thetown of Bor in helicopters, ac-cording to a State Department

spokeswoman. The flights werepart of a broader exodus of inter-national workers and South Su-danese from fighting betweenfactions of South Sudan’s army.The U.S. has evacuated about 380U.S. officials and private citizens,said the spokeswoman, Jen Psaki.

A political power struggle be-tween former South SudaneseVice President Riek Machar andPresident Salva Kiir ahead of2015 elections appears to have

set off the violence. It quickly de-scended into ethnic clashes thatrisk splitting the country of 10million.

By Sunday, rebel factions al-lied with Mr. Machar, a memberof the Nuer ethnic group, had so-lidified control of territory theyseized in a week of gunbattleswith government forces thathave left 500 dead, according tofigures provided by South Su-dan’s military, other officials and

the U.N.Mr. Kiir, from the largest eth-

nic group, the Dinka, said lastweek that his former deputy andrival for the presidency had at-tempted a coup and been beatenback. Mr. Machar denied an at-tempt to overthrow Mr. Kiir butthen said it was time for Mr. Kiirto go.

The dispute quickly widenedto Bor, the capital of South Su-

PleaseturntopageA8

BY HEIDI VOGT

South Sudan Refugees SwellAs Americans Are Evacuated

Wesley Fisher has been con-sumed for the past 25 years by aseemingly impossible question:What became of the many culturaltreasures stolen from Jews duringthe Holocaust?

Then last month, while poringover headline-grabbing images ofart seized by authorities from aMunich apartment, he had an “Ah-ha” moment. A Toulouse-Lautrecprint, of a dancing couple, seemedeerily familiar.

Mr. Fisher is the research di-rector for the Conference on Jew-ish Material Claims Against Ger-many, the New York-basedorganization tasked with compen-sating Holocaust victims for Nazipersecution. For years, he has attempted to chroniclethe Hitler regime’s looting across Europe and theformer Soviet Union. In particular, he fought to cre-ate a database that would collate far-flung recordson works taken by the Nazis from French Jews.

“I was trying to push the idea that property theft

was an integral part of the geno-cide against the Jews,” says Mr.Fisher, 69 years old. “But our soci-ety concentrated on the murders,the killings.”

Now, the obscure databasecould be instrumental in helpingto identify some owners of theroughly 1,400 works seized lastmonth from the Munich apart-ment of Cornelius Gurlitt, son of aprominent Nazi art dealer.

Within an hour of spotting theToulouse-Lautrec print, Mr. Fisherconsulted the database and founda possible match—a lithograph ofthe same approximate size andbearing the same title, “La GoulueDansant avec Valentin Le Dé-sossé,” as the newly discoveredprint.

The lively work, according to Nazi records in thedatabase, had belonged to Esther Van Cleef, Jewishmatriarch of the illustrious Van Cleef & Arpels jew-elry dynasty, and confiscated during the war. Eventu-ally, the Germans brought it to the Jeu de Paume

PleaseturntopageA12

BY LUCETTE LAGNADO

THE ART DETECTIVE

Quest to Track Nazi LootStirs Complex Emotions

Scientists have zapped anelectrical current to people’sbrains to erase distressing mem-ories, part of an ambitious questto better treat ailments such asmental trauma, psychiatric dis-orders and drug addiction.

In an experiment, patientswere first shown a troublingstory, in words and pictures. Aweek later they were remindedabout it and given electroconvul-sive therapy, formerly known aselectroshock. That completelywiped out their recall of the dis-tressing narrative.

“It’s a pretty strong effect.We observed it in every subject,”said Marijn Kroes, neuroscientistat Radboud University Nijmegenin the Netherlands and lead au-thor of the study, published Sun-day in the journal Nature Neuro-science.

The experiment recalls theplot of the movie “Eternal Sun-shine of the Spotless Mind,” inwhich an estranged couple erase

memories of each other.Science has tinkered with

similar notions for years. In ex-posure treatment, repetitive ex-posure to a phobia in a non-threatening way is designed tohelp patients confront theirfears and gradually weaken thefear response, a process knownas extinction. Some researchersalso are experimenting with an-tianxiety drug propranolol. Thehope is that one day it may bepossible to selectively eliminatea person’s unwanted memoriesor associations linked to smok-ing, drug-taking or emotionaltrauma.

Scientists used to think thatonce a memory took hold in thebrain, it was permanently storedand couldn’t be altered. Peoplewith anxiety disorders weretaught to overcome their fearsby creating a new memory. Yetthe old memory remained andcould be reactivated at any time.

About a decade ago, scientistsmade a surprising discovery.

PleaseturntopageA6

BY GAUTAM NAIK

Unwanted MemoriesErased in Experiment

Turkey-U.S. Relations Take a Hit as Corruption Scandal Stirs Unrest

STREET FIGHT: Turkey’s prime minister threatened Sunday to downgrade ties with the U.S., claiming that Western powers are fueling a briberyinvestigation that implicated his government, as thousands of demonstrators flooded Istanbul’s streets calling for the cabinet to resign. A8

Bulent

Kilic/A

genceFrance-Presse/Getty

Images

The North Pole may have SantaClaus, but Christmas at the bot-tom of the earth comes with arace where runners vie for a cov-eted prize: a long, hot shower.

Nearly all of the 125 scientists,engineers and odd-jobbers wholive at the American South Polestation at this time of year bravethe cold for the annual RaceAround the World. It covers atwo- to three-mile route, aroundmultimillion-dollar research proj-ects and over a snow-covered air-plane runway before loopingaround the geographic pole, ex-actly 90 degrees south of theequator.

The racecoursechanges year to yeardepending on who isaround to map it out,and participants usecross-country skis, bi-cycles and sometimesmakeshift floats to getto the finish line. Twoyears ago, on a windyChristmas, one com-petitor juggled alongthe course. Most Po-lies, as residents arecalled, race for fun and the rightto claim that they celebrated theholiday in every time zone on theplanet.

Yet some runners compete towin, spending weeks training in

frigid, icy conditions.Rickey Gates, a profes-sional runner, got a jobwashing dishes at thePole to participate inthe race and secure aberth in the McMurdomarathon, which takesplace at another Amer-ican Antarctic station,more than 800 milesaway.

He ran outside everyday for an hour or two

at the Pole, covering five to 15miles, and won the race in 2010on a day when temperatures gotas high as 10 below zero—“actu-ally quite balmy,” he said. The av-

PleaseturntopageA12

BY RACHEL FEINTZEIG

At South Pole, Christmas Runners Vie for Steamy Prizei i i

Winner of Race in Frigid Temperatures Gets a Long, Hot Shower

Rickey Gates

Deep Freeze Hits Holiday Travel

ICY SLICK: Cars spun out on the side of a highway on Sunday nearPort Washington, Wis., as up to 8 inches of snow accumulated in thearea. Storms snarled holiday-season travel in much of the U.S. A3

Milw

aukeeJourna

lSentinel/AssociatedPress

Image of Toulouse-Lautrec workprovided by the German prosecutor.

Aug

sburgPu

blicProsecutor’sOffice/Eu

ropean

Presspho

toAgency

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW357000-5-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

P2JW357000-5-A00100-1--------XA