YELLOW ****** TUESDAY, JULY 9, 2013 ~ VOL. CCLXII NO. 7 WSJ.com HHHH $2.00 upon request. MM&A didn’t turn up in a basic record search of Ca- nadian accidents. A spokesman for the safety board said late Monday that a fuller record wasn’t imme- diately available. In the U.S., MM&A had 23 acci- dents, injuries or other reportable mishaps from 2010 to 2012 and at least two this year, including the derailment and explosion Saturday Please turn to page A9 But the 74-year-old Yale gradu- ate has also faced criticism for a bitter battle with one of his boards and for championing the contro- versial use of remote-controlled trains in rail yards and one-person crews. The deadly Quebec derail- ment has put MM&A’s safety re- cord under a microscope. The Transportation Safety Board of Canada, the country’s main investigator of rail accidents, doesn’t publicly post safety re- cords of individual operators, but does 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 railroads around the world. Mr. Burkhardt, Rail World’s chairman and chief executive, has spent a lifetime in the industry, earning the respect of many fellow rail executives. The operator of the runaway train that derailed and exploded in Lac-Mégantic, Quebec, this week- end recorded an accident rate far higher than the U.S. average over the past 10 years, federal data show. A train operated by Montreal Maine & Atlantic Railway Inc., a subsidiary of U.S. train operator Rail World Inc., is at the center of a Canadian probe after the train was left unmanned at a crew rest stop and slammed into the small town early Saturday, triggering a In Seoul’s upscale Gangnam neighborhood, made famous by pop star Psy’s viral music video, government curbs on real-estate lending froze a market in which home prices had been rising as fast as 25% a year. In Toronto, housing prices re- versed their rapid rise and fell for five months after the govern- ment changed rules to effec- tively increase monthly pay- ments on new loans. But in Tel Aviv, home prices kept right on climbing—up 11% over the past year for a three- bedroom apartment—even after the central bank boosted mini- mum down payments and made mortgage lending less attractive to banks. Central bankers everywhere else are watching these experi- ments closely, among them Ben Bernanke, chairman of the U.S. Federal Reserve. He and his counterparts around the world, seared by the worst financial crisis in 75 years, are searching for ways to halt borrowing binges before they morph into bubbles, and to push lenders to shore up their defenses before the next crisis arrives. Lifting interest rates to dis- courage borrowing has long been considered a blunt but ef- fective weapon. But that isn’t a step central banks are eager to take when inflation is low or un- employment is high—as they are in many places now. So some central bankers are experimenting with targeting only 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 are focusing on ways to control booms in housing prices by curbing mortgage lending. That’s not the only focus: In- donesia last year outlawed zero- Please turn to page A10 CAIRO—Egypt’s Muslim Broth- erhood accused the country’s military of massacring dozens of its supporters during dawntime prayers in Cairo on Monday, as Egypt’s deadliest clashes in years between the army and Islamists pushed the country toward armed conflict. At least 53 people were killed and more than 400 wounded, Egypt’s official media said, in a clash between the military and supporters of Mohammed Morsi, who had gathered near the site where Mr. Morsi has been held under house arrest since he was ousted as president last week. Egypt’s military denied the al- legations of a massacre, saying that soldiers defended them- selves after they were attacked with guns and Molotov cocktails, and that 42 protesters, plus a soldier, had been killed. Monday’s violence demon- strated the peril of the military’s decision to remove Mr. Morsi, the first freely elected president in the history of the Arab world’s largest nation. Despite its rela- tive stability, Egypt is flirting with what several analysts have until now seen as a worst-case scenario—the kind of armed con- flicts that have roiled other coun- tries in the so-called Arab Spring of uprisings. Only last Wednesday, the mili- tary said it was responding to popular will by ousting the coun- try’s Brotherhood-backed presi- dent. Millions of Egyptians cheered. Standing alongside Egypt’s military chief, leaders representing the country’s Mus- lims, Coptic Christians and secu- lar opposition promised to form an inclusive interim government. Those same leaders, including opposition point man Mohamed ElBaradei and Egypt’s top Sunni sheik, condemned Monday’s kill- ings. Many Egyptians’ hopes for inclusiveness gave way to fears that the young leadership was seeking to rebuild a political sys- tem without the Brotherhood, the nation’s most powerful political force, to possibly deadly result. “I don’t know what the gener- Please turn to page A8 By Matt Bradley, Tamer El-Ghobashy and Charles Levinson Egypt Descends Into Chaos Dozens Killed in Clash Between Military, Morsi Supporters; Elections Planned BY DAVID WESSEL AND ALEX FRANGOS Central Bankers Hone Tools to Pop Bubbles The Thrill of Victory, No Athletic Ability Required i i i Game With a Bumper Car and a Wiffle Ball Proves a Sporting Boon for the Sedentary ROSWELL, Ga.—Brad Betenia didn’t taste much athletic glory as a youth. At 5-foot-8, basketball stardom seemed out of reach. At 140 pounds, he wouldn’t make the football team. Built more like a jockey than a jock, he was typi- cally one of the last guys picked in gym class. But when the bespectacled 27- year-old event co- ordinator came across whirlyball, he knew he had found his chance to shine. The sport, involving flinging a plastic Wiffle ball at an elevated target with a jai-alai-like scoop, doesn’t pivot on athletic prowess. Nor do age, gender or girth matter. Rather than sprint from one end of a basketball-size court to another and back, play- ers move and shoot in bumper cars. “This is a sport where you don’t need to be big or a particu- larly great ath- lete,” says Mr. Betenia. “All you need is to be able to drive and drain shots.” The popularity of whirlyball— think lacrosse on bumper cars—is accelerating, driven by couch po- tatoes who want to excel on the court and weekend warriors. Many wouldn’t survive a fitness Please turn to the next page Whirlyball player BY TIMOTHY W. MARTIN CONTENTS Business Tech............ B4 CFO Journal................. B8 Corporate News B1-3,6,7 Global Finance............ C3 Health & Wellness D1-3 Heard on Street........ C8 In the Markets........... C4 Leisure & Arts............ D4 Opinion................... A11-13 Sports.............................. D5 U.S. News................. A2-6 Weather Watch........ B8 World News..... A7-9,14 DJIA 15224.69 À 88.85 0.6% NASDAQ 3484.83 À 0.2% NIKKEI 14109.34 g 1.4% STOXX 600 292.37 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 using their credit cards more. Revolving consumer credit, which includes mostly credit cards, jumped a seasonally adjusted $6.6 billion in May, or 9.3% at an annualized rate, to $856.49 billion, the biggest percentage rise in a year—albeit the statistics can be volatile. Overall bor- rowing, including car and student loans, grew nearly $20 billion to $2.84 trillion. Revolving consumer credit outstanding, in trillions Source: Federal Reserve 0 0.50 0.25 0.75 $1.00 '09 '10 '11 '12 '13 ’08 ’07 > B arnes & Noble CEO Lynch resigned, two weeks after the bookseller reported that losses at its Nook digital business had more than doubled for the quarter ended April 27. B1 n The White House lowered its economic forecast, seeing 2.4% growth this year, while issuing rosier estimates on un- employment and the deficit. A2 n Michael Dell’s plan to take Dell Inc. private won key endorsements that could soon pivot him toward plot- ting the company’s revival. B3 n The CFTC’s Gensler, in a reversal, is proposing to par- tially delay controversial cross- border derivatives rules slated to go into effect Friday. C1 n Alcoa’s net loss widened to $119 million as the com- pany took charges to close capacity in the face of a global glut of aluminum. B3 n Stocks extended their winning streak to three ses- sions, with the Dow industri- als advancing 88.85 points, or 0.6%, to 15224.69. C4 n The Thunderbird School of Global Management is sell- ing its campus to a for-profit college operator as part of an effort to stay afloat. B1 n Senior bankers who are “reckless” in taking risks could face prison terms in the U.K., under plans presented by the British government. C1 n Turkey stepped up a cam- paign to stem a slide in the nation’s currency, selling a record amount of foreign-ex- change reserves. C4 n Greece’s creditors said that all isn’t well with the coun- try’s bailout, but euro-zone finance ministers agreed to keep aid flowing to Athens. A14 n Cyprus’s finance minister said the Cypriot central bank must complete the restructur- ing of the country’s biggest lender by early August. C3 n Hulu drew bids from suit- ors including DirecTV, a part- nership of AT&T and Chernin and the tandem of Guggen- heim Digital and KKR. B7 n China saw an upturn in con- sumer inflation in June, but it wasn’t enough to alarm pol- icy makers grappling with sluggish economic growth. A14 n Apartment landlords are continuing to raise rents but there are signs that the pace is slowing, according to real- estate research firm Reis. A3 n Despite a bid to clamp down on early release of a popular economic indicator, investors have other ways to get advance looks at market-moving data. C1 n The new Hostess Brands is bringing Twinkies back to shelves next week, with growth ambitions unencumbered by labor unions and debt. B1, B2 n LVMH is buying 80% of Loro Piana from the Italian cashmere brand’s controlling family for $2.56 billion. B3 n NTSB investigators inter- viewed the Asiana pilots. The probe seeks to deter- mine whether the South Ko- rean carrier followed appro- priate procedures and complied with international safety standards in picking the cockpit crew. The pilot involved in Saturday’s crash that killed two Chinese girls had just 43 hours in a 777, while the co-pilot had also recently been promoted. A4 Rescuers climbed just-used escape chutes, then needed knives and even their bare hands to free the trapped and severely wounded. n A clash in Egypt between soldiers and supporters of ousted President Morsi killed at least 53 people and wounded over 400. A1, A8 n The death toll from Satur- day’s Quebec train crash climbed to 13, with 50 miss- ing, authorities said. A9 n The operator of the train has a far higher accident rate than the U.S. average over the past 10 years, data show. A1 n Texas Gov. Perry won’t run for a fourth term in 2014, sparking speculation that he might run for presi- dent again in 2016. A6 n The U.S. will press China this week over allegations that it hacks into American computers, but questions re- sulting from Snowden’s leaks could overshadow talks. A14 n The immigration debate’s focus turns to the House, where GOP members advo- cate a more-piecemeal ap- proach than the sweeping bill passed by the Senate. A6 n Four Japanese utilities applied to restart 10 nuclear reactors under new safety regulations since the 2011 Fukushima disaster. A9 n Pope Francis traveled to a tiny Sicilian island that has become a gateway to Europe, and denounced what he called the “globalization of indiffer- ence” that greets migrants. n Washington, D.C., is con- sidering loosening building re- quirements for parking spots near Metro stations in a bid to ease traffic congestion. A3 n Polls in Germany show Merkel’s center-right coali- tion will likely retain power in September elections. A7 n Manning’s lawyers opened his defense, saying much of what the analyst sent to WikiLeaks had al- ready been widely known. A3 n A federal judge granted a temporary restraining order blocking enforcement of a new Wisconsin abortion law. n Studies show attention- deficit hyperactivity disorder drugs, long taken by students before tests, don’t improve academic outcomes. D1 n Teresa Heinz Kerry’s con- dition was upgraded to fair. The wife of the secretary of state collapsed over the weekend in Nantucket. Business & Finance World-Wide Follow the news all day at WSJ.com Getty Images TODAY IN PERSONAL JOURNAL New Treatment for Language Loss PLUS Do Attention-Deficit Drugs Give an Academic Boost? What’s News– i i i i i i WASHINGTON—The Obama administration has struggled to influence events in Egypt ever since the historic Arab Spring uprisings transformed the Mid- dle East political landscape. Now the U.S. must overcome its limited leverage in an in- creasingly boiling Egypt, espe- cially now that re- gional allies appear committed to heavily funding Egypt’s mili- tary, which last week deposed President Mohammed Morsi. The task is particularly ur- gent now that Egypt’s conflict is emerging as another proxy in the battle for influence across a region still struggling through the political rebellions that be- gan two years ago. The U.S. wants to use its influence in Cairo to persuade the Egyptian military to construct a broad political system that includes Mr. Morsi’s Muslim Brother- hood movement—in other words, one that is both stable and democratic, officials say. The administration of Presi- dent Barack Obama, however, faces a difficult task, having alienated both sides—the Isla- mists and their opponents—in the years since the Arab Spring ouster of strongman Hosni Mubarak in 2011. Islamist poli- ticians have accused the U.S. of complicity in Mr. Morsi’s ouster, while his opponents say the U.S. didn’t speak out force- fully enough against his recent power grabs. U.S. officials on Monday again said that $1.55 billion in U.S. military and economic as- sistance to Cairo could be in jeopardy if Egypt’s generals don’t move quickly to restore civilian rule. Still, the Obama administration avoided weigh- ing in on whether the ouster of Mr. Morsi was a coup. Such a designation, under U.S. federal law, would force the White Please turn to page A8 BY JAY SOLOMON AND COLLEEN MCCAIN NELSON U.S. Struggles for Leverage As Mideast Crisis Deepens A supporter of the Muslim Brotherhood was injured in a clash Monday in Cairo with Egyptian soldiers. Mahmoud Khaled/Agence France-Presse/Getty Images, Amr Abdallah Dalsh/Reuters 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 Runaway Train’s Owner Battled Safety Issues ANALYSIS Investigation of Canadian rail disaster hits snags...................... A9 C M Y K Composite Composite MAGENTA 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,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 P2JW190000-6-A00100-1--------XA