YELLOW

* * * * * * TUESDAY, JULY 9, 2013 ~ VOL. CCLXII NO. 7 WSJ.com HHHH $2 .00

upon request. MM&A didn’t turnup in a basic record search of Ca-nadian accidents. A spokesman forthe safety board said late Mondaythat a fuller record wasn’t imme-diately available.

In the U.S., MM&A had 23 acci-dents, injuries or other reportablemishaps from 2010 to 2012 and atleast two this year, including thederailment and explosion Saturday

PleaseturntopageA9

But the 74-year-old Yale gradu-ate has also faced criticism for abitter battle with one of his boardsand for championing the contro-versial use of remote-controlledtrains in rail yards and one-personcrews. The deadly Quebec derail-ment has put MM&A’s safety re-cord under a microscope.

The Transportation SafetyBoard of Canada, the country’smain investigator of rail accidents,doesn’t publicly post safety re-cords of individual operators, butdoes make that data available

deadly explosion and fire.Rail World is controlled by a

Chicago-area railroad veteran, Ed-ward Burkhardt, who has put to-gether an empire of small railroadsaround the world. Mr. Burkhardt,Rail World’s chairman and chiefexecutive, has spent a lifetime inthe industry, earning the respectof many fellow rail executives.

The operator of the runawaytrain that derailed and exploded inLac-Mégantic, Quebec, this week-end recorded an accident rate farhigher than the U.S. average overthe past 10 years, federal datashow.

A train operated by MontrealMaine & Atlantic Railway Inc., asubsidiary of U.S. train operatorRail World Inc., is at the center ofa Canadian probe after the trainwas left unmanned at a crew reststop and slammed into the smalltown early Saturday, triggering a

In Seoul’s upscale Gangnamneighborhood, made famous bypop star Psy’s viral music video,government curbs on real-estatelending froze a market in whichhome prices had been rising asfast as 25% a year.

In Toronto, housing prices re-versed their rapid rise and fellfor five months after the govern-ment changed rules to effec-tively increase monthly pay-ments on new loans.

But in Tel Aviv, home priceskept right on climbing—up 11%over the past year for a three-bedroom apartment—even afterthe central bank boosted mini-mum down payments and mademortgage lending less attractiveto banks.

Central bankers everywhereelse are watching these experi-ments closely, among them BenBernanke, chairman of the U.S.Federal Reserve. He and his

counterparts around the world,seared by the worst financialcrisis in 75 years, are searchingfor ways to halt borrowingbinges before they morph intobubbles, and to push lenders toshore up their defenses beforethe next crisis arrives.

Lifting interest rates to dis-courage borrowing has longbeen considered a blunt but ef-fective weapon. But that isn’t astep central banks are eager totake when inflation is low or un-employment is high—as they arein many places now.

So some central bankers areexperimenting with targetingonly pockets of financial excess.Because financial bubbles so of-ten involve real estate—and be-cause that sector was at the cen-ter of the last crisis—many arefocusing on ways to controlbooms in housing prices bycurbing mortgage lending.

That’s not the only focus: In-donesia last year outlawed zero-

PleaseturntopageA10

CAIRO—Egypt’s Muslim Broth-erhood accused the country’smilitary of massacring dozens ofits supporters during dawntimeprayers in Cairo on Monday, asEgypt’s deadliest clashes in yearsbetween the army and Islamistspushed the country towardarmed conflict.

At least 53 people were killedand more than 400 wounded,Egypt’s official media said, in aclash between the military andsupporters of Mohammed Morsi,who had gathered near the sitewhere Mr. Morsi has been heldunder house arrest since he wasousted as president last week.

Egypt’s military denied the al-legations of a massacre, sayingthat soldiers defended them-selves after they were attackedwith guns and Molotov cocktails,and that 42 protesters, plus asoldier, had been killed.

Monday’s violence demon-strated the peril of the military’sdecision to remove Mr. Morsi, thefirst freely elected president inthe history of the Arab world’slargest nation. Despite its rela-tive stability, Egypt is flirtingwith what several analysts haveuntil now seen as a worst-casescenario—the kind of armed con-flicts that have roiled other coun-tries in the so-called Arab Springof uprisings.

Only last Wednesday, the mili-tary said it was responding topopular will by ousting the coun-try’s Brotherhood-backed presi-dent. Millions of Egyptianscheered. Standing alongsideEgypt’s military chief, leadersrepresenting the country’s Mus-lims, Coptic Christians and secu-lar opposition promised to forman inclusive interim government.

Those same leaders, includingopposition point man MohamedElBaradei and Egypt’s top Sunnisheik, condemned Monday’s kill-ings. Many Egyptians’ hopes forinclusiveness gave way to fearsthat the young leadership wasseeking to rebuild a political sys-tem without the Brotherhood, thenation’s most powerful politicalforce, to possibly deadly result.

“I don’t know what the gener-PleaseturntopageA8

By Matt Bradley,Tamer El-Ghobashyand Charles Levinson

Egypt Descends Into ChaosDozens Killed in Clash Between Military, Morsi Supporters; Elections Planned

BY DAVID WESSELAND ALEX FRANGOS

Central Bankers HoneTools to Pop Bubbles

The Thrill of Victory,No Athletic Ability Required

i i i

Game With a Bumper Car and a Wiffle BallProves a Sporting Boon for the Sedentary

ROSWELL, Ga.—Brad Beteniadidn’t taste much athletic gloryas a youth. At 5-foot-8, basketballstardom seemed out of reach. At140 pounds, he wouldn’t makethe football team.Built more like ajockey than ajock, he was typi-cally one of thelast guys pickedin gym class.

But when thebespectacled 27-year-old event co-ordinator cameacross whirlyball,he knew he had found his chanceto shine. The sport, involvingflinging a plastic Wiffle ball at anelevated target with a jai-alai-likescoop, doesn’t pivot on athletic

prowess. Nor do age, gender orgirth matter. Rather than sprintfrom one end of a basketball-sizecourt to another and back, play-ers move and shoot in bumpercars.

“This is a sport where youdon’t need to bebig or a particu-larly great ath-lete,” says Mr.Betenia. “All youneed is to be ableto drive and drainshots.”

The popularityof whirlyball—think lacrosse onbumper cars—is

accelerating, driven by couch po-tatoes who want to excel on thecourt and weekend warriors.Many wouldn’t survive a fitness

Pleaseturntothenextpage

Whirlyball player

BY TIMOTHY W. MARTIN

CONTENTSBusiness Tech............ B4CFO Journal................. B8Corporate News B1-3,6,7Global Finance............ C3Health & Wellness D1-3Heard on Street........ C8

In the Markets........... C4Leisure & Arts............ D4Opinion................... A11-13Sports.............................. D5U.S. News................. A2-6Weather Watch........ B8World News..... A7-9,14

DJIA 15224.69 À 88.85 0.6% NASDAQ 3484.83 À 0.2% NIKKEI 14109.34 g 1.4% STOXX600 292.37 À 1.4% 10-YR. TREAS. À 20/32 , yield 2.643% OIL $103.14 g $0.08 GOLD $1,234.90 À $22.00 EURO $1.2870 YEN 100.97

s Copyright 2013 Dow Jones & Company. All Rights Reserved

Vital Signs

Americans are usingtheir credit cards more.Revolving consumer credit,which includes mostly creditcards, jumped a seasonallyadjusted $6.6 billion in May,or 9.3% at an annualizedrate, to $856.49 billion, thebiggest percentage rise in ayear—albeit the statisticscan be volatile. Overall bor-rowing, including car andstudent loans, grew nearly$20 billion to $2.84 trillion.

Revolving consumer creditoutstanding, in trillions

Source: Federal Reserve

0

0.50

0.25

0.75

$1.00

'09 '10 '11 '12 '13’08’07

>

Barnes & Noble CEOLynch resigned, two

weeks after the booksellerreported that losses at itsNook digital business hadmore than doubled for thequarter ended April 27. B1n The White House loweredits economic forecast, seeing2.4% growth this year, whileissuing rosier estimates on un-employment and the deficit. A2nMichael Dell’s plan totake Dell Inc. private wonkey endorsements that couldsoon pivot him toward plot-ting the company’s revival. B3n The CFTC’s Gensler, in areversal, is proposing to par-tially delay controversial cross-border derivatives rules slatedto go into effect Friday. C1n Alcoa’s net loss widenedto $119 million as the com-pany took charges to closecapacity in the face of aglobal glut of aluminum. B3n Stocks extended theirwinning streak to three ses-sions, with the Dow industri-als advancing 88.85 points,or 0.6%, to 15224.69. C4n The Thunderbird Schoolof Global Management is sell-ing its campus to a for-profitcollege operator as part ofan effort to stay afloat. B1n Senior bankers who are“reckless” in taking risks couldface prison terms in the U.K.,under plans presented bythe British government. C1n Turkey stepped up a cam-paign to stem a slide in thenation’s currency, selling arecord amount of foreign-ex-change reserves. C4nGreece’s creditors said thatall isn’t well with the coun-try’s bailout, but euro-zonefinance ministers agreed tokeep aid flowing to Athens. A14n Cyprus’s finance ministersaid the Cypriot central bankmust complete the restructur-ing of the country’s biggestlender by early August. C3n Hulu drew bids from suit-ors including DirecTV, a part-nership of AT&T and Cherninand the tandem of Guggen-heim Digital and KKR. B7nChina saw an upturn in con-sumer inflation in June, but itwasn’t enough to alarm pol-icy makers grappling withsluggish economic growth. A14n Apartment landlords arecontinuing to raise rents butthere are signs that the paceis slowing, according to real-estate research firm Reis. A3nDespite a bid to clamp downon early release of a populareconomic indicator, investorshave other ways to get advancelooks atmarket-moving data.C1n The new Hostess Brandsis bringing Twinkies back toshelves next week, with growthambitions unencumbered bylabor unions and debt. B1, B2n LVMH is buying 80% ofLoro Piana from the Italiancashmere brand’s controllingfamily for $2.56 billion. B3

nNTSB investigators inter-viewed the Asiana pilots.The probe seeks to deter-mine whether the South Ko-rean carrier followed appro-priate procedures andcomplied with internationalsafety standards in pickingthe cockpit crew. The pilotinvolved in Saturday’s crashthat killed two Chinese girlshad just 43 hours in a 777,while the co-pilot had alsorecently been promoted. A4Rescuers climbed just-usedescape chutes, then neededknives and even their barehands to free the trappedand severely wounded.n A clash in Egypt betweensoldiers and supporters ofousted President Morsikilled at least 53 people andwounded over 400. A1, A8n The death toll from Satur-day’s Quebec train crashclimbed to 13, with 50 miss-ing, authorities said. A9n The operator of the trainhas a far higher accident ratethan the U.S. average over thepast 10 years, data show. A1n Texas Gov. Perry won’trun for a fourth term in2014, sparking speculationthat he might run for presi-dent again in 2016. A6n The U.S. will press Chinathis week over allegationsthat it hacks into Americancomputers, but questions re-sulting from Snowden’s leakscould overshadow talks. A14n The immigration debate’sfocus turns to the House,where GOP members advo-cate a more-piecemeal ap-proach than the sweepingbill passed by the Senate. A6n Four Japanese utilitiesapplied to restart 10 nuclearreactors under new safetyregulations since the 2011Fukushima disaster. A9n Pope Francis traveled toa tiny Sicilian island that hasbecome a gateway to Europe,and denounced what he calledthe “globalization of indiffer-ence” that greets migrants.nWashington, D.C., is con-sidering loosening building re-quirements for parking spotsnear Metro stations in a bid toease traffic congestion. A3n Polls in Germany showMerkel’s center-right coali-tion will likely retain powerin September elections. A7nManning’s lawyersopened his defense, sayingmuch of what the analystsent to WikiLeaks had al-ready been widely known. A3n A federal judge granted atemporary restraining orderblocking enforcement of anew Wisconsin abortion law.n Studies show attention-deficit hyperactivity disorderdrugs, long taken by studentsbefore tests, don’t improveacademic outcomes. D1n Teresa Heinz Kerry’s con-dition was upgraded to fair.The wife of the secretary ofstate collapsed over theweekend in Nantucket.

Business&Finance World-Wide

Follow the news all day at WSJ.com

Getty

Images

TODAY IN PERSONAL JOURNAL

New Treatment for Language LossPLUS Do Attention-Deficit Drugs Give an Academic Boost?

What’s News–i i i i i i

WASHINGTON—The Obamaadministration has struggled toinfluence events in Egypt eversince the historic Arab Springuprisings transformed the Mid-dle East political landscape.

Now the U.S. must overcomeits limited leverage in an in-creasingly boiling Egypt, espe-

cially now that re-gional alliesappear committed

to heavily funding Egypt’s mili-tary, which last week deposedPresident Mohammed Morsi.

The task is particularly ur-gent now that Egypt’s conflictis emerging as another proxy inthe battle for influence across aregion still struggling throughthe political rebellions that be-gan two years ago. The U.S.wants to use its influence inCairo to persuade the Egyptian

military to construct a broadpolitical system that includesMr. Morsi’s Muslim Brother-hood movement—in otherwords, one that is both stableand democratic, officials say.

The administration of Presi-dent Barack Obama, however,faces a difficult task, havingalienated both sides—the Isla-mists and their opponents—inthe years since the Arab Springouster of strongman HosniMubarak in 2011. Islamist poli-ticians have accused the U.S. ofcomplicity in Mr. Morsi’souster, while his opponents saythe U.S. didn’t speak out force-fully enough against his recentpower grabs.

U.S. officials on Mondayagain said that $1.55 billion inU.S. military and economic as-sistance to Cairo could be injeopardy if Egypt’s generalsdon’t move quickly to restorecivilian rule. Still, the Obamaadministration avoided weigh-ing in on whether the ouster ofMr. Morsi was a coup. Such adesignation, under U.S. federallaw, would force the White

PleaseturntopageA8

BY JAY SOLOMONAND COLLEEN MCCAIN NELSON

U.S. Struggles for LeverageAs Mideast Crisis Deepens

A supporter of the Muslim Brotherhood was injured in a clash Monday in Cairo with Egyptian soldiers.

Mah

mou

dKh

aled/A

genceFrance-Presse/Getty

Images,A

mrAbdallahDalsh/R

euters

Cairo’s Deadly Day Capital Journal: A familiar

false choice........................... A6 ‘Then came the live fire’... A8 Latest updates at WSJ.com

By Alistair MacDonald,Tom Fowler

and Jesse Newman

RunawayTrain’s Owner Battled Safety Issues

ANALYSIS

Investigation of Canadian raildisaster hits snags...................... A9

CM Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW190000-6-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

P2JW190000-6-A00100-1--------XA