The 10-Point: On the Defensive

Investors came into 2015 ready for more gains in U.S. stocks. But instead, they have been playing defense. We report that worries about the resilience of the U.S. economy played out Tuesday in the bond market, where yields on government bonds dropped and prices rose. Investors flocked to German and Japanese debt, sending yields on some to record lows. In the U.S., the yield on the 10-year Treasury dropped below 2%, ending the day at its lowest level since May 2013. And U.S. stocks fell, with the S&P 500 marking its longest losing streak in more than a year. The global selloff showed signs of easing today. European stocks steadied despite news that eurozone consumer prices fell on an annual basis for the first time in over five years, but the euro touched a nine-year low and German bond yields held close to record lows.

The selling also eased in Asia as stocks in Japan snapped a four-session losing streak on a rising dollar and Australia pared earlier losses. Meanwhile, we look at how Asian companies that used cheap U.S. dollar loans to pile up heavy debts are facing a dual threat: the resurgent dollar and the likelihood of higher interest payments as the U.S. moves to raise rates. (Pictured above: Slower growth in China is adding to the challenges facing borrowers across Asia. Workers assemble LED lights in Shandong province.)

Let it Flow

Why are U.S. producers continuing to pump oil even as crude trades for less than $50 a barrel? Our story looks at how American oil and gas companies have gone heavily into debt during the energy boom and now need to service it. We note that firms have increased their borrowing by 55% since 2010, to almost $200 billion, and energy analysts warn that defaults could be coming. “There are too many ugly balance sheets,” says one. Some lenders are asking producers to provide plans for how they will handle further drops in the price of crude, while others are pressing for asset sales. But it is unclear whether overall U.S. output will decline, since some larger producers still expect to produce more oil and natural gas in 2015 than last year by focusing on their best drilling prospects. Oil prices fell further today, with the Brent crude benchmark falling below $50 a barrel, joining West Texas Intermediate, for the first time since 2009.

Fresh Start

On the opening of the 114th Congress, Republicans officially took over both chambers and comity reigned temporarily. House Speaker John Boehner kissed Minority Leader Nancy Pelosi after a failed attempt by the most conservative Republicans to derail his bid to remain speaker. Though he survived, we note that Mr. Boehner saw the most opposition in a speaker election since 1923. Our story examines the advantages that Mr. Boehner will have with the new Congress and looks at two familiar policy conflicts between Republicans and the White House that also resurfaced yesterday. Officials said President Barack Obama is prepared to veto two bills GOP leaders plan to consider soon—one approving the Keystone XL pipeline and another changing the Affordable Care Act’s definition of a full-time worker from 30 to 40 hours a week. Mr. Obama will play host to congressional leaders next week in the first face-to-face meeting with Republican leaders who gained control of both chambers of the new Congress.

Learning the Ropes

A new year can bring new skills, but what’s getting in the way? Our columnist Elizabeth Holmes examines the factors that often hinder adults from learning new skills such as skiing, golfing and computer coding. She notes that children learn with open minds and fewer worries about mistakes, while adults often think through a new skill in great detail before trying. While skiing, for example, adults may want to be perfect from the start, notes one instructor. Getting them to “learn to falter once in a while” is often a challenge. Language instruction typically emphasizes mechanics rather than conversation. Children, however, just start talking, unafraid of making mistakes. And Elizabeth finds that fear is a big factor in adults’ aversion to learning to code. They need to “get past their inhibitions that this may be too hard or too scary,” says the chief executive of Code.org.