P2JW014000-6-A00100-1--------XA
The Best and
Worst Airlines
Daniel Henninger
Obama’s Legacy:
Trump and Bernie
THE MIDDLE SEAT | D1
OPINION | A11
THURSDAY, JANUARY 14, 2016 ~ VOL. CCLXVII NO. 11
******
DJIA 16151.41 g 364.81 2.2%
NASDAQ 4526.06 g 3.4%
STOXX 600 344.63 À 0.4%
10-YR. TREAS. À 9/32 , yield 2.070%
OIL $30.48 À $0.04
Business & Finance
U
.S. stocks slid, spurring
investors to seek safety.
The Dow fell 364.81, or 2.2%,
to 16151.41, nearing correction territory. The S&P 500
and the Nasdaq are already
in correction mode. Asia markets sank early Thursday. A1
 Bond investors snapped
up $46 billion in AB InBev
debt, the second-largest corporate bond sale on record. C1
 Investors pulled $207.3
billion in 2015 from U.S. mutual funds that hand pick their
positions and poured $413.8
billion into index funds. C1
Investors flee amid
anxiety over global
economy, oil; Dow nears
correction territory
BY SAUMYA VAISHAMPAYAN
AND IRA IOSEBASHVILI
The new year’s stock-market rout deepened Wednesday,
dragging the Dow Jones Industrial Average down almost
10% from its highs of late last
year and sending investors
flocking to safety.
The Dow ended the day
perilously close to what traders call correction territory,
defined as a drop of 10% or
more from a recent peak. The
broader S&P 500 and Nasdaq
Composite indexes are already
in correction mode, having endured a swift and tumultuous
descent in just two weeks.
The selloff continued early
Thursday in Asia. The Shang-
 GE said it would move its
headquarters to Boston from
Connecticut, ending a fierce
contest to lure the firm. B1, B2
 Auto executives, convinced that cheap oil is here
to stay, are issuing bullish
forecasts for 2016. B1
 VW’s meeting with the EPA
over the emissions scandal
ended quickly, suggesting the
two sides remain at odds. B4
 Al Jazeera is shutting its
U.S. cable channel. The channel, backed by oil-rich Qatar,
cited economic factors. B6
 GoPro forecast revenue
below expectations. Its shares
dropped 25% after hours. B3
 Clinton has begun attacks
on Sanders’s policy agenda
as polls show her rival ahead
in New Hampshire and closing the gap in Iowa. A1
 Cruz didn’t disclose to
election officials a pair of
loans he took from Wall
Street banks when he first
ran for the Senate in 2012. A6
 Multiple explosions and
gunfire erupted in Indonesia’s capital Thursday. At
least one person was killed. A7
 The Islamic State bomber
who killed 10 German tourists in Istanbul registered in
Turkey as a Syrian refugee
without setting off alerts. A7
 Iran released videos of
the U.S. sailors held overnight that raised questions
as to whether their treatment was inappropriate. A9
 Denmark’s government
won cross-party backing for a
plan to seize asylum seekers’
cash and valuables to help
meet the cost of their stay. A7
 The Supreme Court wrestled with whether Congress
went too far in aiding terror
victims in a case that seeks to
collect money from Iran. A9
 Last week’s shooting of
a Philadelphia police officer
is being investigated as a
terrorist act, the FBI said. A3
 Chicago dropped its opposition to releasing video
of the fatal 2013 shooting of
a black teen by police. A3
Opinion............... A11-13
Sports.......................... D5
Style & Travel.... D2-3
Technology............... B5
U.S. News............. A2-6
Weather..................... B7
World News. A7-9,14
>
s Copyright 2016 Dow Jones &
Company. All Rights Reserved
EURO $1.0877
YEN 117.68
hai Composite Index breached
its lows from last summer’s
crash, but recovered some of
the losses and at lunchtime
was down 1.2%. A strengthening yen, which hurts Japanese
exporters, drove Japan’s Nikkei Stock Average down 3.7%.
Traders said stock declines
Wednesday were fueled by
fresh concerns that a U.S. economic expansion entering its
seventh year is vulnerable to
softening growth overseas, particularly in China and emerging
economies, as well as increasing volatility in other financial
markets including oil and other
commodities. Brent crude oil,
the European benchmark,
traded below $30 a barrel for
the first time in a decade.
Investors have begun to sell
stocks broadly. Energy stocks
tumbled, as did shares of economically sensitive U.S. firms
ranging from auto makers to
home builders to home-goods
Please see STOCKS page A2
Behind the Pain:
Misplaced
Faith
CHOCOLATE MAKERS
CAPTURED: A video released by Iran Wednesday shows U.S. sailors detained after their small boats
drifted into Iranian waters. The U.S. said it would take action if they were treated inappropriately. A9
FIGHT MELTING SUPPLY
Mondelez, other manufacturers spend $1 billion to boost cocoa output
World-Wide
CONTENTS
Arts in Review..... D4
Business News.. B1-7
Crossword................. B7
Global Finance........ C3
Heard on Street.... C8
In the Markets....... C4
RIB/ASSOCIATED PRESS
 MetLife’s move to shed a
chunk of its U.S. life-insurance
unit is expected to raise pressure on rivals to shrink. C1, C2
 Goldman is planning to
cut up to 10% of its fixed-income traders and salespeople later this quarter. C4
GOLD $1,087.50 À $1.90
HHHH $3.00
Stocks Take
Beating as
Alarm Grows
After Iran Frees U.S. Sailors, Questions Linger
What’s
News
WSJ.com
As a result, the pressure is
on Ms. Amekudzi and her
team of five employees at
Mondelez International Inc.,
the maker of Cadbury Dairy
Milk bars and Oreo cookies, to
help cocoa farmers boost
their dwindling crop yields.
“They need to change the
way they farm,” says Ms.
Amekudzi, who runs Mondelez’s cocoa sustainability operations in Ghana. “We don’t
have the forest cover we had,
we don’t have the rain our
grandfathers had, and the soil
isn’t as fertile…Young people
often leave to seek a better
life in the city.”
She gives cocoa farmers
advice on better ways to
space seedlings, apply fertilPlease see COCOA page A10
BY ALEXANDRA WEXLER
ABANKROM, Ghana—Yaa
Amekudzi bounces along dirt
roads in a sport-utility vehicle
from one village to the next as
part of a $1 billion scramble
by the world’s top chocolate
makers to fix the industry’s
most vexing problem.
Demand for chocolate is
stronger than ever, especially
now that more consumers in
China and India are buying
bars and bonbons long considered an unaffordable luxury. But cocoa production is
down, including a steep slide
last year in Ghana, the second-largest cocoa-growing
country. Cocoa prices have
jumped nearly 40% since the
start of 2012.
In Truth, Bill and Tony
Talked Bananas, Not Ham
i
i
i
Transcripts of former leaders’ calls
prompt spoofs; plate spinning, Disneyland
BY JENNY GROSS
LONDON—Matthew Doyle, a
longtime adviser to former British Prime Minister Tony Blair,
pored over transcripts released
late last week of private telephone calls between
his old boss and former U.S. President
Bill Clinton.
He was gripped
by the intimate conversations between
the two men when
they were in power,
covering topics ranging from domestic
politics to world
events and family
Tony
life. Then he spotted
something that struck him as
not quite right.
In one conversation, the former prime minister referred to a
trip he had taken to Disneyland
and said he had admired the
castle, but “I knew that Tony
Blair hadn’t been to Disneyland,” said Mr. Doyle. He quickly
realized some of the transcripts
were fakes.
Mr. Doyle was among members of the political establishment and public
on both sides of the
Atlantic who were initially taken in by a
batch of spoof transcripts released Friday,
the day after genuine
ones were published
by the William J. Clinton Presidential Library and Museum.
The Clinton PresiBlair
dential Library released more than 500 pages of
transcripts of discussions between 1997 and 2000. They discuss important issues, including
Please see SPOOF page A10
Chocolate Growers
Cocoa bean production in Ghana
and Ivory Coast, which churn out
60% of the world's crop
Ghana
Ivory Coast
2.0 million metric tons
1.5
1.0
0.5
0
2011
’12
’13
’14
’15
Note: Seasons ended Sept. 30
Source: International Cocoa Organization
THE WALL STREET JOURNAL.
As Sanders
Makes Gains,
Clinton Goes
On the Attack
BY GREG IP
National home prices never
go down. Eurozone countries
don’t default. Saudi Arabia
won’t let the price of oil
crash. China’s demand for raw
materials is infinite.
These are some of the
most cherished assumptions
of investors and policy makers in the past decade, assumptions that have underpinned trillions
ANALYSIS of dollars of investment and
debt. The U.S.
housing bust and eurozone
debt crisis demonstrated the
havoc that comes when such
assumptions are proven
wrong.
Something similar may be
happening now. A pronounced
slowing in China’s industrial
sector and a steep drop in oil
prices have taken investors,
business and policy makers
by surprise. That doesn’t
mean a crisis or recession are
in the cards. But it could
mean the U.S. economy and
markets will take a bigger hit
than the relative importance
of either China or oil can explain.
Exports to China constitute
less than 1% of U.S. annual
gross domestic product. The
U.S. is also a net importer of
oil, so a fall in oil prices
should be positive.
Yet, some economists estimate, in the fourth quarter of
2015 the U.S. economy grew
only about 0.5% at an annual
rate. Manufacturing may already be in recession: For two
months the Institute for Supply Management’s index of
factory purchasing managers
has been below 50, the line
between expansion and contraction.
At Wednesday’s close, the
S&P 500 index is down more
than 10% from its recent high,
while the Dow Jones Transportation Average and the
Russell 2000 index of smallcompany shares, both of
which are sensitive to economic momentum, are down
Please see PAIN page A2
Oracle #1
Cloud ERP
BY LAURA MECKLER
AND PETER NICHOLAS
Hillary Clinton all-but ignored rival Bernie Sanders for
months, hoping to avoid alienating his fervent backers
whose support she’ll need if
she wins the Democratic presidential nomination. Now, she
no longer has that luxury.
As polls show Mr. Sanders
ahead in New Hampshire and
closing the gap in Iowa, Mrs.
Clinton, her daughter and top
campaign aides have unleashed a string of attacks on
the Vermont senator’s policy
agenda.
The shift in tone marks a
turning point in the Democratic race as Mrs. Clinton
Please see RACE page A4
 More coverage of the 2016
presidential election.......... A4-6
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