P2JW303000-6-A00100-1--------XA CMYK Composite 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 TODAY IN PERSONAL JOURNAL Coach Gets Even More Crowded PLUS ‘Mom, Mind if I Call You Jane?’ THURSDAY, OCTOBER 30, 2014 ~ VOL. CCLXIV NO. 103 ****** NASDAQ 4549.23 g 0.3% i 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 BY JON HILSENRATH i 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- T 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 policy statement, released 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 i 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 more. 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 Composite 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 ‘THE SO-CALLED RECOVERY’ 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 BY BETH REINHARD AND DAMIAN PALETTA 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 U.S. 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 parties. 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 i i i Model Makers Craft Little Flats, Skyscrapers, But Look Closely for the Queen at a Bus Stop BY ART PATNAUDE 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 [$129 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 for around £500,000. 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 Applications HCM Human Capital Recruiting Talent CRM Sales Service Marketing ERP Financials Procurement Projects Supply Chain More Enterprise SaaS Applications Than Any Other Cloud Services Provider Copyright © 2013, Oracle and/or its affiliates. All rights reserved. P2JW303000-6-A00100-1--------XA World-Wide CONTENTS 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 BY STEPHEN FIDLER 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 Russia Buzzes Europe’s Airspace 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 i YEN 108.90 Benefit of Bond-Buying Experiment Remains Unclear as Central Bank’s Focus Returns to Interest Rates Business & Finance i EURO $1.2632 Fed Closes Chapter on Easy Money What’s News i NIKKEI 15553.91 À 1.5% Getty Images DJIA 16974.31 g 31.44 0.2% HHHH $2.00 WSJ.com MAGENTA BLACK CYAN YELLOW