YELLOW

VOL. CCLXII NO. 82 * * * * * * *

SATURDAY/SUNDAY, OCTOBER 5 - 6, 2013

HHHH $ 2 .0 0

WSJ.com

CONTENTSCooking....................... D4,6Corporate News.... B1-4Design............................. D9Heard on Street..... B14In the Markets........... B5Markets Dashboard B6

Opinion................... A11-13Sports............................ A14Stock Listings.......... B13Style & Fashion..... D1-3Travel ........................... D7,8Weather Watch...... B14Weekend Investor B7-10

s Copyright 2013 Dow Jones & Company.All Rights Reserved

What’sNews

i i i

World-Wide

Obama’s decision to skiptwo key Asian summits

to tackle the U.S. shutdowncould allow China to expandits regional influence. A9

n FEMA recalled employeesfurloughed by the shutdownas the Gulf Coast preparedfor tropical storm Karen. A3n Several governors criti-cized the Washington stand-off and warned of possiblecutbacks in services. A5

n Egypt is planning popu-list economic measures thatrisk alienating foreign inves-tors. Protests left four deadand dozens injured. A1, A8

n Supporters of laws ad-justing the status of illegalimmigrants plan to march in90 U.S. cities Saturday. A5

n The search for bodies ofAfrican migrants whodrowned off Italy was haltedbecause of rough seas. A6

n Pakistan’s retiring armychief is seeking to hold on toa key defense role. A6

n Died: Gen. Vo NguyenGiap, 102, was instrumentalin forcing France and theU.S. out of Vietnam. A9 ...Abraham Nemeth, 94, de-signer of Braille Math Code.

i i i

n Twitter needs more usersand sales staff to win moremass-market spending, adbuyers said. Confusion wasblamed for a frenzy in sharesof a similarly named stock,bankrupt Tweeter. B1, B4

n A prolonged U.S. shut-down could muddy economicdata crucial to assessing therecovery’s progress. A5n The impasse has boostedvolume in the market for de-rivatives that pay off if theU.S. defaults on its debt. B5

n The Dow industrialsposted a second straightweekly loss. The blue chipsadvanced 0.5% on Friday. B5

n Lockheed Martin plans tofurlough around 3,000 em-ployees Monday as a conse-quence of the shutdown. B3

n Swiss regulators areprobing several banks forpossible foreign-exchangemarket manipulation. B1

n South Africa’s auto indus-try is losing around $60 mil-lion a day because of con-tinuing work stoppages. B3

n Alex Rodriguez suedMajor League Baseball overalleged conduct aimed atdestroying his career. A14

Business & Finance

CAIRO—Amid an outburst ofpublic anger at the Egyptiangovernment that left four peopledead on Friday, the country’smilitary-backed leaders are pre-paring a series of populist eco-nomic measures that risk alien-ating foreign donors andinvestors.

The financial strains on ordi-nary Egyptians have been at theroot of political discontent thathas given Egypt three differentgovernments since protestersdrove longtime leader HosniMubarak from power in 2011with cries of “Bread! Freedom!Social justice!”

The current leadership on Fri-day confronted the largest anti-government demonstrations, inmultiple cities, since the militaryforced President MohammedMorsi from power in July.

In one element of an effort tostem public anger, officials aremoving to revive a law—first in-stituted as the country struggledto rebuild after World War II—that would allow the govern-ment to cut prices of fruits andvegetables by as much as 25%.

The government has alreadypassed a law to increase the mini-mum wage for government em-ployees—a move that would likelyprevent the shrinking of Egypt’sbudget deficit below 11% of grossdomestic product.

The government also said itwould follow a court order to re-nationalize two companies thatwere taken private under the re-gime of President Hosni Mubarak.

That is a populist move, too:Mr. Mubarak’s privatizationsthroughout the 1990s and 2000swere deeply unpopular and seenas a sop to international finan-cial institutions such as the In-ternational Monetary Fund.

Officials in Mr. Morsi’s admin-istration fought pressure to re-assume state control of the com-panies, saying such moves wouldcost far more than the govern-ment could afford to spend.

A Cairo court on Monday up-held a ruling sentencing Mr.Morsi’s prime minister, HishamQandil, to a year in jail for fail-ing to follow a court order to re-nationalize one of the compa-nies.

The moves point to the in-terim government’s anxiety overpopular unrest, three months af-ter mass protests, incited in partby concerns about Egypt’s with-ering economy, prompted themilitary to drive Mr. Morsi fromoffice on July 3.

Supporters of Mr. Morsi andthe Muslim Brotherhood took to

Please turn to page A8

BY MATT BRADLEY

EgyptTo TryPopulistTack

WASHINGTON—Despite a weekof budget wrangling that showedscant sign of abating, Wall Streetinvestors shrugged off the fed-eral government shutdown, pre-suming that lawmakers will finda solution before the U.S. losesits borrowing ability.

The Dow Jones Industrial Av-erage rose 76.10 points on Fridayto 15072.58, snapping a two-daylosing streak. The 30-stock aver-

age declined just 1.2% during theweek, despite the shutdown.

Many investors say stocks re-main buoyant because they ex-pect the Federal Reserve to con-tinue its efforts to support theeconomy and because few expectthe current clash to continuelong enough to do lasting dam-age. Some corners of the bondmarkets show signs of concernover the next stage—a possiblefight around mid-October overwhether Congress will give per-mission for the U.S. to issue

more debt. But many standardmeasures of market anxiety, suchas the price of gold and theyields on long-term governmentbonds, aren’t yet flashing.

The shutdown “doesn’t seemto be fazing the markets all thatmuch,” said Brian Jacobsen,chief portfolio strategist forWells Fargo Funds ManagementLLC, which manages $226 bil-lion. “The reason is, we’ve seenthis coming from a mile away.”

Friday brought an increas-ingly bitter series of volleys be-

tween the protagonists and en-sured that the federal budgetimpasse would drag through theweekend. That makes next weeka big test of whether the mar-ket’s calm holds up.

Complicating matters, thelights remain off in the federalgovernment’s key statistic agen-cies, preventing the release ofeconomic data that would helpinform investors about the state

Please turn to page A5

BY JANET HOOKAND KATY BURNE

Markets Shrug at ShutdownEven as Debt Battle Looms

PACKWOOD, Wash.—Few energy sources are aspristine as the icy water tumbling into BurtonCreek here, which falls 550 feet from a ridge thatoffers a breathtaking view of nearby Mount Rain-ier National Park.

Investor Sam Perry is making a bet that BurtonCreek will provide a breathtaking revenue stream,too.

The Colorado investor acquired a derelict powerplant when he bought the property last Decemberfor $150,000. Starting with this month’s rains, andthrough next spring’s runoff, he calculates BurtonCreek will send 5,000 gallons of water per minuteinto a turbine at the base of the falls. That willgenerate kilowatts that Mr. Perry plans to sell foras much as $12,000 per month for as long as theriver runs.

“Your water flow is your cash flow,” says Mr.Perry.

Out West, in a land legendary for rugged indi-vidualism, Mr. Perry is one of a small band of in-vestors combing the backwoods, looking for bar-gains in so-called mini-hydropower plants.

Water power may not sound like one of thebuzzy, high-tech renewable energies that politi-cians and environmentalists love to endorse. Yet itis America’s oldest power source, dating back tocolonial towns that harnessed water currents toturn the millstones that ground grain into flour.Today, hydro accounts for about 7% of all electric-ity generated in the U.S. In three Northweststates—Oregon, Washington and Idaho—it is stillthe main source of power.

While the big utilities control most of hydro’smight, dozens of mini-hydro plants dot the U.S.—

Please turn to page A10

BY JOEL MILLMAN

REVENUE STREAM

Bargain Hydropower Plants HaveSmall Investors Chasing Waterfalls

The nation spends an esti-mated $15 billion annually onsalary bumps for teachers whoearn master’s degrees, eventhough research shows the di-plomas don’t necessarily lead tohigher student achievement.

And as states and districts be-gin tying teachers’ pay and jobsecurity to student test scores,some are altering—or scrapping—the time-honored wage boost.

Lawmakers in North Carolina,led by Republican legislators,voted in July to get rid of the au-tomatic pay increase for mas-ter’s degrees. Tennessee adopted

a policy this summer that man-dates districts adopt salaryscales that put less emphasis onadvanced degrees and more onfactors such as teacher perform-ance. And Newark, N.J., recentlydecided to pay teachers for mas-ter’s degrees only if they arelinked to the district’s new mathand reading standards.

The moves come a few yearsafter Florida, Indiana and Louisi-ana adopted policies that requiredistricts to put more weight onteacher performance and less ondiplomas.

“Paying teachers on the basisof master’s degrees is equivalent

Please turn to page A4

BY STEPHANIE BANCHERO

Pay Raises for TeachersWith Master’s Under Fire

Note: For fiscal years ending Sept. 30Source: Federal Energy ResourcesCommission

The Wall Street Journal

Power SurgeLicenses issued for hydropowerdams, by size

25

0

5

10

15

20

2010 ’11 ’12 ’13

Mini(1 mega-watt orless)

Others

DAY 4: Friday brought bitter words but little movement toward a resolution. John Boehner, left, heads to a meeting; Barack Obama breaks for lunch.

Mic

hael

Reyn

olds

/Eur

opea

nPr

essp

hoto

Age

ncy,

Pete

Mar

ovic

h/Pr

ess

Pool

DRUMNADROCHIT, Scotland—Steve Feltham was surveying theshores of the Loch Ness lastsummer when his cellphonerang, breaking his concentration.A local reporter was calling tosay she had just received aphoto of the Loch Ness Mon-ster—its arched hump protrud-ing from the waters—and shewanted to run it by him beforesending it to print.

Mr. Feltham, a full-time mon-ster hunter for 22 years, studiedthe photo.

“It is the best photograph I

think I have ever seen,” he told thejournalist at the Inverness Courierfrom his home, a van parked onthe pebbled shores of Loch Ness.

Many in Drumnadrochit, a vil-lage in northern Scotland, and

throughout Britain, hailed thephoto taken by George Edwards,a tour guide, as one of the mostconvincing monster picturesever taken. It is the centerpieceof his tour company which oper-ates out of Nessieland, a LochNess tourism center. He sellspostcards of his photos to pas-sengers for 50 pence (80 cents)apiece.

But Mr. Feltham—who says aperfect day involves staring atthe loch from dawn to dusk insearch of the monster—now sayshis endorsement was a grave er-ror. He says he soon realized the

Please turn to page A10

BY JENNY GROSS

Latest Loch Ness ‘Sighting’ Causes a Monstrous Fighti i i

Discredited Nessie Photo Emerges to Shake the Faith in Drumnadrochit

The 1934 Hoax

WEEKENDREVIEW

AutumnBooks2013

REVIEW offduty

MenswearFit for aWoman

OFF DUTY

InsideNOONAN A13

To Lead Is toNegotiate

AUTUMN BOOKS.................................. C5-16

>

More on the shutdown.... A4, A5

LCN # 1304-2079588Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and in New York, Lincoln Life & Annuity Company of New York, Syracuse,NY. Variable products distributed by broker/dealer-affiliates. Lincoln Financial Distributors, Inc., Radnor, PA. Securities and investment advisory services offered through other affiliates.© 2013 Lincoln National Corporation.

life

income

retirement

group benefits

advice

Calling allChief Life Officers.

Take charge today at lincolnfinancial.com/clo

You’re the boss of your life.

C M Y K CompositeCompositeMAGENTA CYAN BLACK

P2JW278000-7-A00100-10FEEB7178F CL,CX,DL,DM,DX,EE,EU,FL,HO,KC,MW,NC,NE,NY,PH,PN,RM,SA,SL,SW,TU,WB,WEBG,BM,BP,CC,CH,CK,CP,DN,DR,FW,HL,HW,KS,LG,LK,MI,ML,NM,PA,PI,PV,TD,TS,UT,WO

P2JW278000-7-A00100-10FEEB7178F