P2JW314000-6-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 MARKETPLACE Beat Black Friday JASON GAY IN SPORTS ****** Last week: DJIA 17573.93 À 183.41 1.1% i MONDAY, NOVEMBER 10, 2014 ~ VOL. CCLXIV NO. 112 NIKKEI 16880.38 À 2.8% STOXX 600 335.25 g 0.5% 10-YR. TREASURY À 6/32 , yield 2.314% OIL $78.65 g $1.89 i Business & Finance A plunge in Treasury yields last month has sparked a probe into whether electronic trading and new regulations are fueling price swings. A1 n The CFTC plans to start steering some of its cases to administrative law judges instead of trials in U.S. court. C1 n MetLife is gearing up for a possible suit against the government to avoid being labeled “systemically important.” C1 n Wal-Mart’s sales in China fell in the quarter through July as the country’s austerity campaign took a toll. B1 n An Argentine bank was tied to an alleged money-laundering scheme, according to a complaint filed in U.S. court. C1 n Ford shook up its leadership ranks as the auto maker’s European chief and global marketing leader swapped roles. B3 n China will open Shanghai’s stock market to overseas investors with the Nov. 17 launch of a Hong Kong trading link. C2 n Black Friday isn’t the day to snag the best holiday sales, according to online data. B1 i i i Simone Kuhlmey/Pacific Press/Zuma Press n Laundry detergent capsules like P&G’s Tide pods pose a serious poisoning risk to young children, a study found. B1 BYGONE BARRIER: More than 300,000 people gathered on Sunday to commemorate the Berlin Wall’s collapse, some too young to remember. A14 Bond Swings Draw Scrutiny Search for Reasons Behind Recent Volatility Turns to Oct. 15 Plunge in Treasury Yield BY TOM LAURICELLA AND KATY BURNE The day’s trading was just hitting its stride in New York on the morning of Oct. 15 when bond investors, traders and strategists were stunned by an unusual move in the $12 trillion U.S. Treasury market playing out on their computer screens. The yield on the 10-year Treasury note took a sharp dive below 2% within minutes, and few could understand exactly why. Some dealers immediately pulled the plug on automated trading systems that provided price quotes to customers. Fund managers rushed to convene meetings. Many investors scrambled to pinpoint the reason behind the accelerating decline. “It starts moving faster and faster, and you can’t point to anything,” recalled Mark Cernicky, managing director at Principal Global Investors, which oversees $78 billion. Now, investors and regulators are burrowing into the causes of the plunge in yields to try to understand whether electronic trading and new regulations are fueling sudden price swings in a market that acts as a key benchmark for interest rates, investments and U.S. home loans. At the time, bond-market analysts attributed the fall in yields to weak U.S. economic data, shaky European markets and hedge funds scrambling to cover wrong-way bets. But many investors felt that didn’t fully explain why the yield on the 10-year Treasury note tumbled to its biggest one-day decline since 2009. When yields fall, prices rise. Regulators and other experts are examining deep-seated shifts in trading since the financial crisis, which could help explain the unusual size of the move in a market many investors rely on Please turn to page A4 World-Wide BY JEREMY PAGE Tim Franco for The Wall Street Journal n Obama arrived in Beijing for the APEC summit, as China seeks to assert its place as Asia’s dominant power. A1 n Mexico’s president may face a scandal over news that the first lady has a home in the name of a firm whose owner has won government jobs. A7 n Airline safety investigators said a Southwest pilot violated rules before a crash landing in New York City last year. A3 n Over two million Catalans voted overwhelmingly for independence, defying a Spanish court in a symbolic ballot. A14 n Died: Phil Crane, 84, longtime conservative lawmaker. CONTENTS Abreast of the Market C1 Corporate News.... B2,3 Global Finance............ C3 Heard on the Street C8 Law Journal................. B5 Markets Dashboard C6 Media............................... B4 Moving the Market C2 Opinion.................. A15-17 Sports.............................. B6 U.S. News................. A2-5 Weather Watch........ B5 World News......... A7-14 > s Copyright 2014 Dow Jones & Company. All Rights Reserved To bind the region to China, Beijing plans a trade hub at remote Horgos, where a merchant tends shop on the Kazakhstan side of the border. GM Ordered New Switches Seven Weeks Before Recall BY JEFF BENNETT General Motors Co. ordered a half-million replacement ignition switches to fix Chevrolet Cobalts and other small cars almost two months before it alerted federal safety regulators to the problem, according to emails viewed by The Wall Street Journal. The parts order, not publicly disclosed by GM, and its timing are sure to give fodder to lawyers suing GM and looking to poke holes in a timetable the auto maker gave for its recall of 2.5 million vehicles. The recall concerns a switch issue that is now linked to 30 deaths and has led to heavy criticism of the auto giant’s culture and the launch of a Justice Department investigation. The email exchanges took place in mid-December 2013 between a GM contract worker and the auto Please turn to page A4 Composite n Over 300,000 people gathered in the German capital to mark 25 years since the fall of the Berlin Wall. A14 MUSCAT, Oman—Iran sent signals that it was open to overtures in a recent letter from U.S. President Barack Obama as talks kicked off here on Sunday, but tensions in both nations’ capitals are complicating attempts to rein in Tehran’s nuclear program as a diplomatic deadline approaches. Iranian officials confirmed that Mr. Obama reached out directly to Supreme Leader Ayatollah Ali Khamenei in a mid-October letter that emphasized shared interests in combating the Islamist militants who have seized territory in Iraq and Syria. But responses from Tehran suggested continued divisions inside Iran’s leadership on how to respond to the U.S. Adding unpredictability are last week’s U.S. midterm elections, in which Republicans took control of the Senate. Lawmakers have said that could clear the way for long-stalled legislation that would crack down on Iran and add to the weight of U.S. sanctions. Mr. Obama cast doubt on what had been growing optimism in Washington and Europe about the prospects for a comprehensive deal in an interview with CBS News that aired on Sunday. “The question now is are we going to be able to close the final gap so that they can re-enter the international community,” Mr. Obama said. “There’s still a Please turn to page A8  ISIS leaders hit in airstrike... A10 HORGOS, China—In a valley flanked by snowcapped peaks on China’s border with Kazakhstan, a vision of Beijing’s ambitions to redraw the geopolitical map of Asia is taking shape. This remote outpost, once a transit point for Silk Road merchants, is where China is building one of its newest cities. Covering more than twice the area of New York City, Horgos had just 85,000 residents when it was founded in September, enveloping several towns and villages in an area known for lavender fields. China’s plan is to transform the sleepy frontier crossing into an international railway, energy and logistics hub for a “Silk Road Economic Belt” unveiled by President Xi Jinping last year to establish new trade and transport links between China, Central Asia and Europe. Horgos is a small element of China’s wider effort to bind surrounding regions more closely to it through pipelines, roads, railways and ports, say diplomats and analysts who have studied the plans it has made public. The plans also include an Asian-Pacific free-trade deal, a $50 billion Asian Infrastructure Investment Bank and a $40 billion Silk Road Fund that Mr. Xi announced last week, promising aid as well as investPlease turn to page A14  Japan, China signal thaw with meeting................... A14 For Sale: Renovated Luxury Condo; Can Withstand Nuclear Attack i i i Together, we can plant the seeds of your bright future. Angst-Ridden Affluent Buy Up Units In Former Missile Silo; a Cell for the Unruly BY LIZ MOYER health pandemic, cataclysmic weather and terror attacks. When Tyler Allen agreed to “There’s a Camp David for fork over $3 million in cash for the president,” he says. “If a luxury condominium near you’re at a certain level where Concordia, Kan., he wasn’t at- you can afford it, you can get tracted by the indoor swimming that, too.” pool, 17-seat movie theater, or The so-called Survival Condo hydroponic vegecomplex boasts table garden. full and half-floor The real selling units that cost point of the 1,820$1.5 million to $3 square-foot apartmillion each. The ment: It will be building can acburied 174 feet commodate up to underground in a 75 people, and Armored doors decommissioned buyers include missile silo sturdy doctors, scientists enough to withstand a nuclear and entrepreneurs, says develattack. oper Larry Hall. Mr. Allen, a 45-year-old OrMr. Hall, who lives in a Denlando, Fla., sports bar and ver suburb, bought his first misnightclub owner, insists he isn’t sile-silo site in Kansas in 2008 a “tinfoil hat-wearing” type pre- and completed construction in paring for the end of the world. December 2012. A year later, he Rather, he cites growing se- says, the development had sold Please turn to page A12 curity threats—such as a global Grow your savings safely with an 15-Month CD from Synchrony Bank. 1.20% Special Offer: APY1 on all balances of $2,000 or more Call us at 1-800-869-0206 or visit us at myoptimizerplus.com to get started using promo code WSJ. Great Rates + Safety = Peace of Mind. Annual Percentage Yield (APY) is accurate as of 11/01/14 and subject to change at any time without notice. The minimum balance required to earn the advertised APY is $2,000 and must be deposited in a single transaction. Accounts with balances of $2,000 or more 1.20% APY. The minimum balance to open a CD is $2,000. A penalty may be imposed for early withdrawals. Fees may reduce earnings. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Visit myoptimizerplus.com for current rates, terms and account requirements. Offer applies to personal accounts only. Funds must come from a source outside of Synchrony Bank. © 2014 Synchrony Bank 1 P2JW314000-6-A00100-1--------XA n Heavy fighting erupted around a rebel-held city in eastern Ukraine, worsening fears of a return to full-blown war. A12 Tensions Muddle U.S.-Iran Dialogue On Beijing’s New Asian Map, All Roads Lead to China n The U.S. led coalition targeted Islamic State leaders in weekend airstrikes near the militant stronghold of Mosul in northern Iraq. A10 n Israeli Arabs staged a strike after a video emerged of a man gunned down as he retreated from police. A10 YEN 114.62 SOFT POWER n Iran signaled it was open to U.S. overtures in a recent letter from Obama, as talks kicked off to reach a deal ahead of a diplomatic deadline. A1 n The HealthCare.gov update will include a window-shopping tool that could help the website handle applicants. A5 EURO $1.2455 BY JAY SOLOMON n GM ordered a half-million replacement ignition switches to fix small cars almost two month before alerting safety regulators. A1 n U.S. adults under age 35 have a savings rate of negative 2%, leaving many without a financial cushion and further away from their goals. A3 HHHH $2.00 WSJ.com A Quarter Century Later, Germans Celebrate a Great Wall’s Demise What’s News i NASDAQ 4632.53 À 0.04% Too Much Football MAGENTA BLACK CYAN YELLOW