YELLOW

* * * * * * FRIDAY, JANUARY 9, 2015 ~ VOL. CCLXV NO. 7 WSJ.com HHHH $3 .00

DJIA 17907.87 À 323.35 1.8% NASDAQ 4736.19 À 1.8% NIKKEI 17167.10 À 1.7% STOXX600 342.35 À 2.7% 10-YR. TREAS. g 18/32 , yield 2.016% OIL $48.79 À $0.14 GOLD $1,208.40 g $2.20 EURO $1.1795 YEN 119.66

TODAY IN MANSION

An Enclave With Star PowerARENA The Super Bowl of College Football

AgenceFrance

Presse/G

etty

Images

(Wahlberg)

CONTENTSBooks................................ D5Corporate News B2,3,5Global Finance............ C3Heard on the Street C8In the Markets........... C4Movies......................... D3,4

Opinion..................... A9-11Sports....................... D1,2,8Technology................... B4Theater........................... D7U.S. News................. A2-4Weather Watch........ B6World News............ A5-7

s Copyright 2015 Dow Jones & Company.All Rights Reserved

>

What’sNews

i i i

World-WidenOne of the suspects in thedeadly rampage at a Frenchmagazine is believed to havereceived training from an alQaeda offshoot in Yemen. Amanhunt continued for twoalleged gunmen. A1, A6-7n Several European nationsbolstered security measuresas the Paris shooting rein-forced fears of gun attacks. A6nCongress moved closer to alikely approval of the Keystonepipeline as a Senate panel ad-vanced the bill and the Houseprepared for a Friday vote. A4n Low gasoline prices arespurring some state and fed-eral officials to call for a gas-tax increase to repair roads. A2nThe Pentagon plans to closea number of military bases inEurope in a bid to save an esti-mated $500million a year. A5n Obama proposed offeringfree community college nation-wide. The plan would requirelegislation in Congress. A3nDemocratic Sen. Boxer ofCalifornia said she won’t runfor re-election in 2016.A4n The Senate voted to keep aterrorism-insurance programin place through 2020. A4nThe NFL didn’t see a videoof the Rice domestic-violenceincident before the tape’s pub-lic release, a probe found. D8n Sri Lanka’s Rajapaksa,trailing in a presidential vote,pledged a smooth transition ofpower, a spokesman said. A5nThe U.S. urged Saudi Arabiato rescind its sentencing of anactivist that includes the pun-ishment of 1,000 lashes. A5

i i i

Trian launched a fightagainst DuPont to add fourdirectors to the board, settingup one of the biggest-ever bat-tles by an activist investor. A1n Stocks surged on expecta-tions of continued easy-moneypolicies. The Dow jumped323.35 to 17907.87, edging intopositive territory for 2015. C1nBorrowers who took outauto loans over the past yearare missing payments at thehighest level since 2008 amid arise in subprime car loans. C1nNatural-gas prices slid to amore than two-year low de-spite frigid weather on expec-tations of ample supplies. C1n Santander plans to raise upto $8.88 billion by selling newshares amid concern the bank’scapital cushion is too thin. C1nNHTSA finedHonda $70million for failing to report po-tential safety problems in vehi-cles for over a decade. B3n Janus’s chairman said hedidn’t know that one broker-age office accounted for mostof the cash in Gross’s fund. C2nAdvertisers are paying up to$1million for 30 seconds of air-time on ESPN’s telecast of thecollege football title game. B1n A full report by the Fed’swatchdog sheds more light onstumbles by the New York Fedin the “London whale” case. C3nTelecom companies aremo-bilizing to challenge anymoveby the FCC to regulate the In-ternet as a public utility. B1nCoke is cutting at least 1,600jobs world-wide in responseto sluggish soda sales. B3

Business&Finance

PARIS—One of the French-born brothers who allegedlystormed the newsroom of the sa-tirical magazine Charlie Hebdo inthe deadly rampage that left 12dead is believed by U.S. andFrench intelligence to have re-ceived weapons training from anal Qaeda offshoot in Yemen, U.S.officials said Thursday.

The brother, Said Kouachi,was allegedly trained under theauspices of al Qaeda in the Ara-bian Peninsula during 2011, theofficials said, but there is so farno evidence the group directed,ordered or monitored the attack.

“We know they were in-spired,” another U.S. official said,“but we do not know the extentthey were associated with alQaeda.”

French Interior Minister Ber-nard Cazeneuve said Thursdaythat the man, 34 years old, wasidentified from video footage cap-tured by neighbors during theWednesday attack. A French na-tional identity card with his namewas found in an abandoned get-away car, he said. The ID card ledinvestigators to the court files ofhis younger brother, ChérifKouachi.

Authorities first focused theirattention on Chérif Kouachi, whohas a previous terror-relatedconviction. Said Kouachi has no

PleaseturntopageA6

By DavidGauthier-Villars,Noémie Bisserbe

and Julian E. Barnes

MassacreSuspectTrainedIn YemenU.S. Ties ManWanted in ParisAttack to al Qaeda

Europe’s ascendant anti-im-migration and nationalist move-ments tried to capitalize on adeadly attack in Paris this weekto trumpet a theme they havepressed for years, but rarely be-fore with this much urgency: aloss of cultural identity.

“This bloodshed shows thatanyone who ignored or laughedoff the concerns about the threatIslamism poses is a fool,” saidAlexander Gauland, a leader ofAlternative for Germany, an up-start party that wants to limitimmigration and take Germanyout of the euro.

In the past, such rhetoricwould be quickly dismissed as

the ramblings of the politicalfringe. But these parties, fromFrance to the Netherlands to theU.K., have been on the march inrecent years, fueled by growingpublic discontent over a senseamong many Europeans thattheir traditional way of life isthreatened.

Europe’s persistent economicwoes and the growing—and oft-resented—influence of the Euro-pean Union in national affairshave provided an opening tothese movements, which critics

say prey on their citizens’ basestfears. These groups have longtargeted Islam, whose growingpresence on the continent theysay threatens Europe’s culturalmores.

The radicalization of a gener-ation of dispossessed Muslims inMiddle Eastern wars in Iraq andSyria has only deepened fears,helping these parties to scoretheir best showing ever in May’sEuropean Parliamentary vote.

“Western governments haveto realize that we are at war,”

said Geert Wilders, the leader ofthe Netherlands’ Party for Free-dom.

Europe’s establishment par-ties worry that the attack pro-vides the nationalists more am-munition to sow xenophobia.Those tensions bubbled to thesurface in France on Thursday.

Marine Le Pen, the Frenchleader of the National Front, theparty which finished first in lastyear’s European elections with25% of the vote, claimed herparty had been excluded from amarch of unity with other politi-cal groups on Sunday. “Believeme, this will be a stain on theFrench political class,” said Ms.Le Pen, who will neverthelessmeet with French President

PleaseturntopageA7

BY MATTHEW KARNITSCHNIGAND WILLIAM HOROBIN

A Backlash Swells in Europe

MIRABEL, Quebec—Just after he became Bombar-dier Inc.’s chief executive in 2008, Pierre Beaudoinbet the future of the company his grandfatherfounded on a pair of passenger jets rivaling thosefrom the two titans of global aerospace.

Bombardier had long produced smaller planes forwealthy individuals, companies and regional airlines.The technologically advanced, more fuel efficientCSeries would be its first jets capable of seating wellover 100 passengers, aiming at a slice of the marketdominated by Boeing Co. and Airbus Group NV.

But more than six years after the CSeries’ first or-ders, Mr. Beaudoin is revamping Bombardier and re-taking control of the project to keep it from becom-ing a multibillion-dollar albatross.

In the latest blow, Bombardier said Thursday itwas parting ways with its chief commercial-aircraftsalesman. A series of missteps have shaken the proj-ect, starting with development problems that de-layed the first model’s planned late-2013 deliverydate by as much as two years, and continuingthrough software-development snags and a major

engine failure last May that halted test flights for100 days.

The cost of the CSeries has mushroomed, and theSwedish carrier lined up to be the first operator ofCSeries planes declined the role in August—the sec-ond customer to do so. Bombardier said it has se-cured a new launch airline, though it isn’t yet nam-ing it.

Meanwhile, Airbus and Boeing, as well as Brazil’sEmbraer SA, have sharpened competition in thebroader single-aisle market—the industry’s work-horse planes of 100 to 240 seats—that the CSeriesmust contend with. The other jet makers are upgrad-ing existing models to offer improved fuel effi-ciency—which makes planes cheaper per seat to op-erate—while aggressively discounting sales prices.

Combined with other savings for airlines thatcome from only making incremental changes in theirfleets, the moves have eaten into the cost efficiencyof Bombardier’s new jets.

In an interview, Bombardier’s 52-year-old scionsays he is confident the efforts will pay off. A majorrestructuring announced in July culled an entire

PleaseturntopageA12

BY JONOSTROWER AND PAUL VIEIRA

TROUBLED BET

Bigger Proves Far From BetterFor Canadian Jet Maker

AurelienMeunier/G

etty

Images

Kimberly Kilbride is a profes-sional cuddler.

For $80 an hour, or up to $400for an overnight gig, the 33-year-old mother of three dons flannelpajama bottoms, puts away herfamily pictures and two pit bullmix dogs and invites clients intoher bedroom in Highland, N.Y., tosnuggle. Once the spooning be-gins, she insists that it staystrictly platonic.

The cuddle-for-hire business istaking off—even though theclothes stay on. Thousands of cus-tomers across the country arebooking appointments with pro-fessional cuddlers in at least 16

states. The snugglers squeeze,tickle and bearhug clients for afixed rate. Patrons who bookedthese services out of mere curios-ity say they have become hookedon their therapeutic benefits.

“I am a convert,” says MelissaDuclos-Yourdon, 35, a freelancewriter and editor in Vancouver,Wash. She originally hired a cud-

dler after hearing about it frommembers of her book club, think-ing it could provide fodder for anessay. Once cuddled, “I felt trans-formed,” she says.

While snuggling businesseshave existed for years, interest isaccelerating with newer onlineapps and meet-up services. Plansare under way for a cuddling con-vention.

One free app, Cuddlr, launchedin September and already has hadabout 240,000 downloads, accord-ing to Charlie Williams, a founderand developer. The location-basedsocial-media application allowsusers to find people near them tocuddle with. Between 7,000 and

PleaseturntopageA12

BY STEPHANIE ARMOUR

Just Want to Cuddle? Now You Can, for $80 an Houri i i

Professional Snugglers EmbraceMoreClients; Spooning, Tickling Sessions

Kelly Peterson and client

DARK NIGHT: Lights on the Eiffel Tower in Paris were turned off for five minutes Thursday in tribute to the victims of this week’s terror attack.

Stocks Go Up...Down...Up Again

25

22

Source: WSJ Market Data Group The Wall Street Journal

Thursday:17907.87

323.35

18000

16000

16500

17000

17500

400

–400

–200

–300

0

200

300

100

–100

July Aug. Sept. Oct. Nov. Dec. Jan.

Point change from previous day

DJIA daily close

Moves of100 or morepoints sinceJuly

up days

down days

BIG MOVES: Large stock swings have picked up lately, but the Dow’srally Thursday brings it within 1% of a record. Thursday’s buying cameas large investors looked to take advantage of lower prices. C1

Nelson Peltz’s investment firmlaunched a fight against DuPontCo. to add four directors to thecompany’s board, setting up one ofthe biggest battles ever initiatedby an activist investor.

The showdown follows 18months of bickering, and pits thecompeting ideas of Trian FundManagement LP, one of theworld’s biggest activist-investmentfunds, against those of a 212-year-old stalwart of U.S. industry.

With a market capitalization of$67.5 billion, DuPont ranks amongthe largest-ever targets of a proxyfight by an activist investor. Theboard nominations mark the first

such fight in almost a decade forTrian, which prefers to work withcompanies out of the public eye.Trian owns around 2.7% of Du-Pont’s shares.

Late Thursday DuPont said itsboard would review Trian’s nomi-nees and “make a recommenda-tion that is in the best interest ofall shareholders.” The companystrongly defended its performanceand governance under Chairmanand Chief Executive Ellen Kullmanand said that, “Despite numerousefforts to engage construc-tively…Trian has chosen this pathwith the potential to disrupt ourCompany at a key stage of execu-tion against our plan.”

Trian’s four nominees, whichPleaseturntothenextpage

BY DAVID BENOITAND JACOB BUNGE

Activist’s Bid Sets StageFor Brawl for DuPont

Terror Attack in Paris Europe steps up security measures..................................... A6 Ties suggest resurgent al Qaeda.......................................... A6 Assault tests France’s secular model................................... A7

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW009000-6-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

P2JW009000-6-A00100-1--------XA