d o C Coach Gets Even More

Coach Gets Even More Crowded
‘Mom, Mind if I Call You Jane?’
NASDAQ 4549.23 g 0.3%
STOXX 600 328.78 À 0.2%
10-YR. TREAS. g 12/32 , yield 2.325%
OIL $82.20 À $0.78
GOLD $1,224.30 g $4.90
The Federal Reserve said it
would end its long-running
bond-purchase program, concluding a historic experiment
that stirred disagreement among
policy makers, economists and
investors about its impact even
though the central bank said it
helped accomplish its goal of reducing unemployment.
The move and the Fed’s accompanying assessment of cur-
he Fed said it would end
its bond-buying program,
citing improvement in the labor market and strength in
the broader U.S. economy. A1
 U.S. stocks and bonds eased
as investors weighed the Fed’s
latest policy statement. The
Dow fell 31.44 to 16974.31. C6
n Oil-industry experts say
prices would have to fall further to crimp the U.S. energy
boom, but smaller drillers
could soon face problems. A1
rent conditions were a vote of
confidence in the U.S. economy,
which many economists peg to
have grown at an annual pace
near 3% or more in the third
quarter. That’s a much better
performance than in Japan or
Europe and a hopeful sign for
the world economy when growth
in China appears to be flagging.
“There has been a substantial
improvement in the outlook for
the labor market since the inception of [the] current asset-pur-
chase program,” the Fed said in its
Wednesday after a two-day policy
meeting. “Moreover, the [Fed]
continues to see sufficient underlying strength in the broader economy to support ongoing progress
toward maximum employment in
a context of price stability.”
The program ends with mixed
reviews. While it clearly didn’t
cause the inflation outbreak
some predicted, it also didn’t
clearly lead to a surge of eco-
nomic output or hiring.
If all goes as they expect, officials will now turn their attention
in the months ahead to discussions about when to start raising
interest rates and how to signal
those moves to the public before
they happen. For now the central
bank stuck to an assurance that it
will keep short-term interest rates
near zero for a “considerable
time.” Many investors and Fed officials expect no rate increases
until the middle of next year.
n American Realty said two
executives quit following an
accounting error and coverup.
The SEC plans a probe. C1
n Sanofi’s board ousted its
CEO, citing a lack of communication on such issues as a
planned drug-portfolio sale. B1
n Fiat said it plans to spin off
its Ferrari sports-car unit
through an IPO next year. B3
GIANT STEP: The Giants held off the Kansas City Royals 3-2 Wednesday night in Game 7 of the World Series for their third championship in five
seasons. In a dramatic relief appearance, pitcher Madison Bumgarner (left, with catcher Buster Posey) threw five scoreless innings. D5
n Islamic State unleashed a
barrage of shelling near a border crossing with Turkey as
Iraqi Kurdish fighters moved
toward Kobani, Syria. A11
n The Air Force said the U.S.
bombing campaign against
Islamic extremists is exacerbating its shortage of planemaintenance experts. A2
n Islamic State killed at least
40 Sunni tribal fighters and
security forces in a mass execution west of Baghdad. A11
n Defense Secretary Hagel
approved a 21-day isolation
period for military personnel
returning from West Africa. A8
n A nurse who treated Ebola
patients in West Africa said
she wouldn’t comply with a
Maine state quarantine. A8
n The U.S. and Israel clashed
over Netanyahu’s housing
policies in Jerusalem. A10
n An Israeli religious activist
was shot and wounded by
gunmen on a motorcycle. A10
n The White House is considering an illegal immigrant’s
time in the U.S. and family
ties in deciding on policy. A4
n China stripped a Hong Kong
politician of his advisory-board
seat after he contradicted
Beijing over protests. A14
n Astronomers are warily
watching the largest active
sunspot in 24 years. A6
Markets Dashboard C4
Opinion.................. A19-21
Small Business.......... B5
Technology................... B6
U.S. News................. A2-7
Weather Watch........ B7
World...... A9-11,14,16,17
s Copyright 2014 Dow Jones & Company.
All Rights Reserved
U.S. Boom
Can Stand
Further Fall
In Oil Prices
Oil prices would need to fall at
least another $20 a barrel to
choke off the U.S. energy boom,
industry experts say, though
some smaller American producers would face serious problems
from a more modest decline.
By Russell Gold,
Erin Ailworth
and Benoît Faucon
Small and midsize companies—not global giants—are behind the surge in U.S. oil output,
which hit 8.97 million barrels a
day earlier this month, according
to federal statistics. Some of
these drillers have taken on a lot
of debt, which was easier to justify when oil was going for as
much as $107 a barrel just four
months ago.
U.S. crude closed Wednesday
at $82.20 a barrel, and far less in
some parts of the country where
few pipelines are available to
move it to refineries. Lower oil
prices mean drillers will have less
cash to cover their borrowings,
especially if crude prices tumble
So far, American companies
haven’t reacted to the recent oilprice drop: The number of drilling rigs searching for onshore oil
in the U.S. has risen slightly since
oil prices peaked June 20.
The Organization of the Petroleum Exporting Countries seems
to be betting that will change
soon. Abdalla Salem el-Badri,
OPEC’s secretary general, predicted Wednesday that if current
prices hold, half of the U.S. oil
that is fracked from shale formations will be uneconomic, leading
companies to stop producing it.
That view is at odds with most
Please turn to the next page
 Bets on natural-gas liquids..... C7
 Slower stockpile buildup........... C7
n NATO said Russian military aircraft conducted aerial
maneuvers around Europe at
a scale seldom seen since the
end of the Cold War. A1
n EU sanctions on Russia will
have only a modest impact on
Europe’s economy but will hit
Russia harder, a study says. A9
BRUSSELS—Russian military
aircraft conducted aerial maneuvers around Europe this week on
a scale seldom seen since the
end of the Cold War, prompting
NATO jets to scramble in another
sign of how raw East-West relations have grown.
The North Atlantic Treaty Organization said that more than
two dozen Russian aircraft in
four groups were intercepted
and tracked on Tuesday and
Wednesday, an unusually high
level of activity that the alliance
said could have endangered
passing civilian flights.
Military jets from eight nations were scrambled to meet
the Russian aircraft, which a
NATO spokesman said remained
in international airspace and
didn’t violate NATO territory.
However, NATO officials said
Please turn to page A9
Taking Ferrari
Economy Stokes Voter Anger Out
for a Spinoff
At Incumbent Governors
TAMPA—Only one state has reduced its unemployment more than Florida has over the past four
years. And by a host of measures, Colorado’s economy now outpaces nearly every other state in the
Yet Florida Gov. Rick Scott, a Republican, and
Colorado Gov. John Hickenlooper, a Democrat, are
both battling voter skepticism as they campaign
for a second term. Their re-election challenge
shows the limits of upbeat economic news among
many voters who either haven’t seen much improvement in their own household finances or
consider the recovery too weak to trust.
In a two-steps-forward, one-step-back economy,
bragging rights elude incumbent governors in both
Unemployment is down and consumer confidence is up, but wages have fallen or flatlined for
many Americans. A record number of people work
temporary jobs. In Florida, nearly a quarter of
homeowners owe more on their mortgages than
their houses are worth.
Despite months of positive U.S. economic trends,
President Barack Obama has record-low approval
ratings that threaten to undermine the prospects of
Senate Democrats from Alaska to Arkansas.
In Michigan, Pennsylvania, Maine and Wisconsin,
Please turn to page A7
Tiny Bubble: Big-Time Property Deals
Drive Boom in Small-Scale Replicas
Model Makers Craft Little Flats, Skyscrapers,
But Look Closely for the Queen at a Bus Stop
Designers at the London firm
Kandor sweat the small stuff.
Vogue and GQ arranged just so
on the coffee table. The creases
sharp on the pillowcases. Paintings hung perfectly straight.
Lampshades bathing the room in
soft light.
“If they’re going to spend £80
million] on a
flat,” Kandor director Jim Currie
says of potential
buyers, “they’ll want to see what
exactly it could look like.”
There is a boom in super-highend London property—and there
is a boom in tiny stuff, too.
The firm where Mr. Currie
works is one of London’s largest
architectural model makers. In
Kandor Modelmakers’ studios,
workers whittle wood with scal-
pels into little walls, shape plastic into gumdrop-sized pillows,
and glue together the odd copse
of finger-sized trees.
The work is painstaking and
handcrafted. A model of a single
penthouse apartment can cost
£20,000. The price of a miniature
of the latest London skyscraper
can rise over
£100,000. Kandor
once sold a tennis-court-sized
model of an entire city center
Model making is no cottage
industry. Architectural models
have weathered the age of computer-aided design. Architects
these days mostly work in software, but buyers want things
they can touch and feel.
So London’s modelers are in
high demand after a financial
Please turn to page A16
HORSE TRADE: Fiat Chrysler set an
IPO for its sports-car unit, aiming to
raise cash for broad growth plans. B3
Oracle Cloud
Human Capital
Supply Chain
More Enterprise SaaS Applications
Than Any Other Cloud Services Provider
Copyright © 2013, Oracle and/or its affiliates. All rights reserved.
Commodities............... C8
Corporate News B2-4,7
Global Finance............ C3
Heard on the Street.. C10
In the Markets....... C6,7
Leisure & Arts........... D4
Matt Slocum/Associated Press
n Samsung’s net tumbled
49% as its mobile business
lost ground to low-cost Chinese smartphone makers. B6
n China is taking a step toward easing its grip on credit
cards, potentially opening the
market to foreign firms. C1
 Stocks slip on Fed plans........... C6
 Heard on the Street.................. C10
n Apple has held talks with
distributors about selling its
products in Iran should
Western sanctions ease. B1
n Deutsche Bank swung to a
loss after boosting its reserves to cover possible fines
from pending litigation. C3
Plenty could go wrong and
drive the Fed to tear up its
plans. Twice before officials declared they would stop printing
new money to buy bonds, only to
restart the process when
growth, hiring and inflation appeared to sag. One official, Minneapolis Fed President Narayana
Kocherlakota, dissented from the
Please turn to the next page
San Francisco Giants Beat the Royals to Win World Series
n European officials are expanding a probe into complex
stock trades that banks allegedly used to help clients fraudulently earn tax rebates. C1
YEN 108.90
Benefit of Bond-Buying Experiment Remains Unclear as Central Bank’s Focus Returns to Interest Rates
Business & Finance
EURO $1.2632
Fed Closes Chapter on Easy Money
NIKKEI 15553.91 À 1.5%
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DJIA 16974.31 g 31.44 0.2%
HHHH $2.00