For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 23409.47 g 30.23 0.1%
What’s
News
Business & Finance
U .S. manufacturing has
picked up pace over the
last 12 months, aided by
steady global economic
growth and other factors. A1
 Total debt held by U.S.
households rose to a new
high last quarter, the 13th
straight quarterly increase. A2
 A junk-bond selloff cen-
tered in the telecom sector
is raising concerns that
weakness could spread. B1
 Ex-Pimco CEO El-Erian
is one of several candidates
being considered to serve as
the Fed’s vice chairman. A2
 Central bank leaders
from the U.S., Europe, Japan
and the U.K. defended their
crisis-fighting measures. A7
 Foxconn posted a 39%
drop in net profit amid
production challenges dog-
ging Apple’s iPhone X. B1
 Venezuelan bonds fell
after rating firms declared the
nation in default on missed
interest payments. B19, B20
 Japan’s GDP grew at an
annualized pace of 1.4% last
quarter, marking its longest
growth streak in 16 years. A7
 GE lost its spot as the
top industrial firm by mar-
ket value after its share price
slid 13% in a two-day fall. B1
 Energy shares helped
drag down stocks as crude
prices fell. The Dow shed
30.23 points to 23409.47. B19
 Oil futures tumbled as
the IEA cut its demand fore-
cast. U.S. crude fell 1.87%. B19
 Nintendo is close to a
deal with animation studio
Illumination to make a
movie based on the “Super
Mario Bros.” videogame. B1
World-Wide
 Senate Republicans at-
tached a provision to their tax
overhaul that would repeal the
requirement that all Ameri-
cans have health insurance. A1
 Republicans, fearing a
Democratic victory in Ala-
bama’s U.S. Senate race, are
grasping for ways to derail
GOP nominee Moore. A1
 Sessions said he now re-
calls a 2016 meeting with a
Trump campaign adviser at
which the aide spoke about
contacts with Russians. A4
 Zimbabwe’s military moved
to subdue what it called the
nation’s “degenerating” polit-
ical establishment but denied
it was ousting Mugabe. A9
 Ross defended the admin-
istration’s aggressive Nafta
strategy, suggesting the U.S.
can press Mexico and Can-
ada for big concessions. A6
 Trump returned from his
Asia trip with a good deal of
bonhomie with fellow leaders
but few tangible outcomes. A8
 The House passed a de-
fense-policy bill that would
boost military spending to
nearly $700 billion. A3
 U.S. Catholic bishops
chose a conservative for a
key post, signaling resistance
to the pope’s vision. A3
 Australians endorsed
same-sex marriage in a non-
binding national vote. A9
 A gunman choosing his
targets at random opened
fire in a Northern California
town, killing at least four. A2
 Three UCLA basketball
players returned to the U.S.
after being detained in China
for suspected shoplifting. A8
CONTENTS
Business News.. B3,7
Crossword.............. A16
Heard on Street B20
Life & Arts...... A13-15
Markets............ B19-20
Opinion.............. A17-19
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * * WEDNESDAY, NOVEMBER 15, 2017 ~ VOL. CCLXX NO. 116
NASDAQ 6737.87 g 0.3% STOXX 600 383.86 g 0.6%
Sessions in Hot Seat, Recalls Discussion of Russia Meeting
ANDREW HARRER/BLOOMBERG NEWS
ON THE HILL: In a five-hour appearance Tuesday before a House committee in Washington, Attorney General Jeff Sessions said he remembers
a 2016 meeting with a Trump campaign adviser in which the aide spoke about contacts with Russians, a contrast to earlier statements. A4
Senate GOP Adds Tax Twist
Republicans signal they
will try to repeal key
Obamacare provision
as part of new plan
BY STEPHANIE ARMOUR
AND RICHARD RUBIN
Senate Republicans at-
tached a provision to their tax
overhaul that would repeal the
requirement that all Americans
have health insurance, a new
twist in the GOP lawmakers’
efforts to rewrite much of the
U.S. tax code.
The insurance mandate is a
centerpiece of the 2010 Afford-
able Care Act, also known as
Obamacare. Repealing it is a
long-sought goal of Republi-
Party Pressures Moore on Senate Bid
BY JANET HOOK
AND SIOBHAN HUGHES
Republicans, seeking to head
off the first Senate Democratic
victory in Alabama in decades,
are grasping for ways to derail
their nominee, Roy Moore,
whose campaign has been en-
gulfed by allegations of sexual
misconduct.
President Donald Trump
spoke on the phone from Viet-
nam with Senate Majority
Leader Mitch McConnell and
discussed how to manage the
crisis, the senator said. Mr.
McConnell, who has been
spearheading the effort to block
Mr. Moore, said Tuesday he
wants Attorney General Jeff
Sessions to reclaim the seat.
The Republican National
Venezuela’s Golden
Generation Is Fleeing
Fate of class of 1994 signals a nation’s decline
BY RYAN DUBE
CARACAS, Venezuela—The
class of 1994 had big dreams
upon graduating from the
Ceapucv high school, a two-
story building tucked into a
hillside overlooking this city.
Solsire Ortega wanted to run
an architecture firm, while
Juan David Chacón hoped to
become a famous musician.
Property Report..... B8-13 Most of the close-knit class
Sports........................ A16
Technology............... B4 of about 50 students intended
The Count.............. A16 to stay in Venezuela, where
U.S. News............. A2-6 growing up meant parties on
Weather................... A16
World News...... A7-11
Caribbean beaches, hiking the
Ávila mountain range and
cheering for the city’s Lions
> baseball club. The oil-rich
country was still a land of op-
portunity, even though they
were coming of age amid the
rise of Hugo Chávez and his
leftist, antiestablishment
movement.
10-YR. TREAS. À 6/32 , yield 2.381%
cans, who see it as onerous.
Moreover, eliminating the
mandate could free up federal
tax revenue because it would
mean fewer households buying
insurance and thus fewer ap-
plying for federal health-care
subsidies or for Medicaid.
Republicans plan to use the
money freed up by repealing
the mandate to direct tax cuts
to middle-income households.
They want to increase their
proposed $1,650 child tax
credit to $2,000 per child and
lower the tax rates in three
brackets, dropping the pro-
posed 22.5%, 25% and 32.5%
rates to 22%, 24% and 32%, re-
spectively, according to the
proposal, released Tuesday
night by the Senate Finance
Committee.
Committee cut financial ties to
Mr. Moore, and the Alabama
GOP is considering an array of
options to dislodge Mr. Moore
and still hold the seat.
Strategists in both parties
are reacting to a prospect that
appeared remote just a couple
of weeks ago: Democratic can-
didate Doug Jones could win in
the reliably Republican state.
The nonpartisan Cook Politi-
cal Report, which had rated the
seat solidly in GOP hands, Tues-
day declared it a toss-up. Re-
publicans concede that Mr.
Jones, a former U.S. attorney,
could win as Mr. Moore’s cam-
paign is dogged by nearly a half-
dozen reports of sexual assault
and misconduct involving teen-
agers while he was in his 30s.
He has denied the allegations.
In the years after gradua-
tion, Venezuela went from one
of the region’s oldest democ-
racies to what the U.S. and
others now call a dictatorship,
from one of Latin America’s
richest nations to one of its
poorest, and from a place
where migrants came search-
ing for opportunity to one
many are trying to flee.
School ended more than
two decades ago, and now
about two-thirds of the class
has emigrated, according to
interviews with the students
and former teachers, starting
new lives in places like small-
town Texas, Madrid, and Syd-
ney.
Please see CLASS page A12
 Holders face quandary as
default sinks bonds.............. B19
 Debt crisis in Venezuela:
What’s next?........................... B20
OIL $55.70 g $1.06
Those alterations, which the
committee will debate
Wednesday, will help Republi-
cans show more tangible bene-
fits to families, and the bigger
child credit was a priority for
some GOP senators.
Under the changes an-
nounced late Tuesday, all of
the individual tax cuts and the
tax cuts for pass-through busi-
nesses would expire at the end
of 2025.
That would help Republi-
cans follow the fast-track pro-
cess they are using, which lets
them pass a bill without need-
ing Democratic votes but pre-
vents them from adding to
projected budget deficits after
2027. However it opens them
to Democratic arguments that
they are prioritizing corpora-
Push and Pull
 Business groups press to
protect ‘Dreamers’......... A4
 Ross says U.S. has
leverage over Nafta....... A6
 Doubts emerge on tax
plan details........................ A6
 GOP, bar association
tangle over nominees.... A3
“His campaign is collapsing,”
Mr. McConnell said at The Wall
Street Journal’s CEO Council on
Tuesday. “Obviously, we’re in a
discussion here about how to
salvage this seat, if possible.”
Republicans worry that if
Democrats win in Alabama, it
would put them one seat closer
to winning back the Senate ma-
jority, which the now GOP con-
Hey, Amazon:
Our Town Has
Stoplights!
i i i
Retailer’s hunt for
a new site attracts
implausible bidders
BY LAURA STEVENS
Amazon.com Inc. is shopping
for a second home, and it has
attracted bids from big, urbane
suitors such as Boston and Dal-
las.
It also has fielded a proposal
from Rockdale, Texas—pop.
5,628.
The town, which enjoys a
few stoplights and hosts an an-
nual rodeo, has joined forces
with the county to tout the
charms of an old manufacturing
area near town surrounded by
livestock ranches.
“It’s wide open spaces,” says
Please see TOWN page A12
 A look at cities vying to be
Amazon’s second home....... B4
WSJ.com
GOLD $1,281.50 À $4.20
tions’ permanent cuts over in-
dividuals. And Democrats will
likely be able to point to sig-
nificant tax increases for indi-
viduals in 2027, compared with
what would happen if Con-
gress does nothing now.
The updated version of the
tax bill also would make more
businesses eligible for a new
special deduction, double a de-
duction for teachers’ out-of-
pocket expenses and create a
tax credit for businesses that
offer paid family leave.
Including the health-policy
change adds a new layer of
complexity to an already laby-
rinthine tax debate. Republi-
cans have been speeding
ahead, powered by a political
imperative to reach a big eco-
Please see REPEAL page A6
trols by just 52-48. In the 2018
midterm elections, Democrats
need to flip three GOP seats,
and so far have identified only
two strong prospects, in Ari-
zona and Nevada.
The Dec. 12 special election
is being held to pick a successor
for Mr. Sessions, who held the
seat before he was named at-
torney general. Republican Sen.
Luther Strange was appointed
to temporarily fill the post, but
lost to Mr. Moore in the special-
election primary in September.
Republicans fear Mr. Moore is
impervious to political pressure,
because defiance is a hallmark
of his political career. As chief
justice of the state Supreme
Court, he lost his post twice for
bucking court orders to allow
Please see MOORE page A4
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American
Industry
Picks Up
Steam
BY ANDREW TANGEL
AND JOSH ZUMBRUN
American manufacturing has
picked up pace over the last 12
months thanks to steady global
economic growth, a rise in en-
ergy and other commodity
prices, and increased business
confidence.
Although progress isn’t be-
ing felt by all industries, makers
of items ranging from bulldoz-
ers to semiconductors to food
products are on the upswing as
various measures of spending,
sentiment and employment
have climbed, while stock mar-
kets hit record highs.
The sector “absolutely has
improved relative to where we
were a year ago,” said William
Strauss, a manufacturing econ-
omist at the Federal Reserve
Bank of Chicago, who described
the growth as modest.
Employment numbers point
to the overall progress. The U.S.
manufacturers have added
156,000 workers since Donald
Trump was elected president in
November 2016, according to
government data.
That is a clear turnaround
from the loss of 16,000 such
jobs during the final year of Ba-
rack Obama’s administration,
although the recent growth
hasn’t surpassed manufacturing
payroll increases in 2011 and
2014, when the sector gained
more than 200,000 jobs.
Also, business investment
Please see SHIFT page A10
 Total debt held by U.S.
households hits new high... A2
 Ex-Pimco CEO El-Erian is
candidate for Fed post......... A2
Investors Dump
Telecom Bonds
Yields on junk bonds jumped in
November, led by a selloff in
debt of telecom companies. B1
Bloomberg Barclays U.S.
Corporate High Yield Index (n),
telecom component (n)
7.0%
6.5
6.0
5.5
5.0
Aug. Sept. Oct. Nov.
Source: Bloomberg Barclays
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Wednesday, November 15, 2017
Household Debt Hits a New High
Consumer confidence
The Mountain of Debt
spurs the increase, but Total U.S. household debt hit a new high in the third quarter, the 13th
delinquencies on auto straight quarter of growth...
loans raise concerns $14 trillion
BY BEN LEUBSDORF
Delinquency rates have
been creeping higher for cer-
tain loans in a sign that some
Americans are under growing
financial stress as the total
debt held by U.S. households
continues to hit new highs.
The Federal Reserve Bank of
New York said Tuesday that
household debt totaled $12.955
trillion last quarter, up 0.9%
from the spring for a 13th
straight quarterly increase. That
was the most on record, though
the figure wasn’t adjusted for
inflation or population growth.
As a share of U.S. economic
output, household debt was
about 66% last quarter versus
a high of around 87% in 2009.
“Overall, the picture looks
healthier than it did a decade
ago,” according to Adam
Slater, lead economist at Ox-
ford Economics.
Broad growth in borrowing
over the summer months was
the latest sign of consumer
confidence as the U.S. econ-
omy enjoys the lowest unem-
ployment rate in nearly 17
years. After years of delever-
aging in the wake of the
2007-09 recession, household
debt has risen more than 16%
since the spring of 2013.
Some 4.9% of debt out-
standing was delinquent as of
Sept. 30, ticking up from three
months earlier. Late-payment
rates on the whole remain low,
but flows into delinquency
have risen in recent years for
credit-card and auto debt.
One continued concern: The
sharp rise in delinquency for
auto loans made to subprime
borrowers by auto-finance
firms, usually via auto makers
or dealers. The New York Fed
RICH PEDRONCELLI/ASSOCIATED PRESS
Two women embrace outside a Northern California school, where a gunman opened fire Tuesday, wounding several people. Four people were killed at other locations.
CALIFORNIA
Gunman Kills Four, Utility Spurned
Tries to Enter School Advice on Deal
A gunman choosing his tar-
gets at random opened fire in a
tiny Northern California town
Tuesday, killing four people and
wounding at least 10 others, in-
cluding a student at an elemen-
tary school, before police shot
him dead, authorities said.
The rampage began around 8
a.m. in the community of Ran-
cho Tehama Reserve, about 130
miles north of Sacramento,
when the gunman fatally shot a
neighbor he had been accused of
stabbing in January, Tehama
County Assistant Sheriff Phil
Johnston said.
Shortly afterward, the gun-
man rammed through the gate
of Rancho Tehama Elementary
School about 2 miles away and
spent about six minutes shoot-
ing into the building, striking at
least one student, Mr. Johnston
said.
Surveillance video showed
the gunman trying unsuccess-
fully to enter the school, authori-
ties said.
—Associated Press
12
Recession
10
8 cursor to more consumer-price
6 The producer-price index, a
4 enced by businesses, increased
2 earlier, the largest year-over-
0 years, according to a report re-
2003 ’05 ’10
...and the share of debt considered seriously delinquent, at least 90
days late, is down since the recession—but now rising for auto loans.
14%
Recession
12
10
8 Increases in the amount
6 Other
4 Auto loans
2 Home-equity
0 Mortgages
2003 ’10
Source: Federal Reserve Bank of New York
said the low overall delin-
quency figure masks significant
deterioration in those loans.
The smaller number of sub-
prime auto loans made by banks
and credit unions have fared
better, “in part reflecting differ-
ences in underwriting stan-
dards,” said New York Fed econ-
omist Wilbert van der Klaauw.
But even with its growth in
recent years, the volume of
auto loans outstanding is
dwarfed by housing-related
debt, the major form of bor-
rowing by U.S. households.
PUERTO RICO
Puerto Rico’s power company
didn’t follow its lawyers’ advice
when it agreed to a $300 million
grid-construction contract with
Whitefish Energy Holdings LLC,
according to documents released
by a House committee probing
the now-canceled deal.
Email communications show
at least seven types of contrac-
tual protections for the public
power monopoly known as
Prepa that were recommended
by its lawyers or included in
draft documents but omitted
from an Oct. 17 agreement with
Whitefish, according to records
from the House Committee on
Natural Resources.
The emails raise new ques-
tions about a contract that is
under review by federal criminal
investigators and congressional
panels. Prepa selected White-
fish—a startup with two employ-
ees when Hurricane Maria hit—
as the general contractor for
repairing the damage without a
competitive bidding process.
—Andrew Scurria
U.S. NEWS
Other
Student loans
Credit cards
Auto loans
Home-equity
revolving
Mortgages
’15
Student loans
Credit cards
Total
revolving
’15
THE WALL STREET JOURNAL.
The size of the subprime
auto segment is “not insignifi-
cant, but it’s a great deal lower
than, say, subprime mortgages
were in 2007,” Mr. Slater said,
and so “arguably unlikely to
create the same kind of losses
if it goes very bad.”
New York Fed economists
wrote on the bank’s website
that “although the impact on
the larger financial sector may
be muted, there are over 23
million consumers who hold
subprime auto loans.”
In general, many new loans
U.S. WATCH
CONSUMER SAFETY
Group Issues List of
Toys It Calls Unsafe
Fidget spinners, a plastic
Wonder Woman battle sword
and a remote-controlled Spider-
Man drone are among the toys
topping a consumer safety
group’s annual list of worst toys
for the holidays.
World Against Toys Causing
Harm, or WATCH, unveiled the
top 10 list Tuesday at a Boston
children’s hospital. The nonprofit
organization has been releasing
the lists for more than four de-
cades.
WATCH claims fidget spin-
ners contain small parts that
can be a choking hazard, Mat-
tel’s Wonder Woman sword has
the potential to cause blunt-
force injuries, and Marvel’s Spi-
der-Man drone has multiple ro-
tating blades that can lead to
eye and other bodily injuries.
The Toy Association, an in-
dustry trade group, dismissed
the list as “needlessly frighten-
ing” to parents because all toys
sold in the U.S. meet “rigorous”
safety standards.
—Associated Press
Producer Prices
Jump, Signaling
More Inflation
WASHINGTON—The prices
that businesses pay for goods
are picking up, a potential pre-
inflation.
measure of inflation experi-
2.8% in October from a year
year increase in more than five
leased by the Labor Depart-
ment Tuesday.
“If producers see more in-
flation, then consumers are
gonna get it sometime, some-
where in the end,” said Chris
Rupkey, chief financial econo-
mist at MUFG. “Inflation is
starting to rear its ugly head
at the producer level.”
that businesses paid for goods
and services decelerated from
2012 to 2015 and fell in 2015,
as oil prices slumped and the
dollar strengthened, making
imports cheaper.
Now, gas prices are re-
bounding and the beginning of
2017 saw a weakening dollar,
pushing up what businesses
last quarter went to house-
holds with healthy credit. The
median credit score for auto
loans originated in the third
quarter was 705, and the me-
dian credit score for new
mortgage borrowers was 760.
Mortgages make up more
than two-thirds of overall
household debt and totaled
$8.743 trillion in the third
quarter, up $52 billion from
the spring. Home-equity lines
of credit, meanwhile, fell by $4
billion to $448 billion.
Auto loans outstanding
WASHINGTON
USPS Reports Loss
For 11th Year in Row
The beleaguered U.S. Postal
Service reported a financial loss
Tuesday for the 11th straight
year, citing declining mail volume
and costs of its pension and
health-care obligations even as it
predicted another strong holiday
season of package deliveries.
It pleaded for more freedom
CORRECTIONS  AMPLIFICATIONS
Cheniere Energy Inc.’s Sa-
bine Pass natural-gas terminal is
on the Louisiana side of Sabine
Pass, which runs between Loui-
siana and Texas. A photo caption
with an article about natural-
gas exports in Tuesday’s Journal
Report on Energy incorrectly
said the facility is in Texas.
The Danish artist Vilhelm
Hammershøi was incorrectly
referred to as Dutch in a Life &
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
* ***
pay and potentially decreasing
profit margins. This could
cause business owners to raise
what they charge customers.
Excluding the volatile food,
energy and trade services cate-
gories of the producer-price in-
dex, prices increased 2.3% from
a year earlier, the fastest year-
on-year price increase since the
middle of 2014. Multiple as-
pects of business spending
have increased at more rapid
rates, including the cost of
transporting and warehousing
goods.
“Costs go up and firms
eventually have to recoup
those costs with pricing,” said
Stephen Stanley, chief econo-
mist at Amherst Pierpont Se-
curities. “The fact that the
economy is strong is allowing
firms to get a little more confi-
dent with pricing.”
The Federal Reserve is
closely monitoring inflation as
it considers another increase in
short-term interest rates by
the end of the year.
Consumer-price inflation
has continued to undershoot
the Fed’s targets, with other
inflation-related readings com-
ing in weak, despite a tight la-
bor market and strong eco-
nomic growth, which could
pose an obstacle to the Fed’s
interest-rate plans.
—Sharon Nunn
jumped by $23 billion to $1.213
trillion. Auto makers in Sep-
tember and October reported
strong sales, partly because
Texans, Floridians and others
had to replace vehicles dam-
aged by hurricanes.
Student loans rose by $13
billion to $1.357 trillion as the
fall semester got under way at
colleges and universities.
Credit-card debt was up by
$24 billion to $808 billion.
 More Americans feel like a
million dollars.......................... B18
to raise stamp prices to help
keep pace with consumer de-
mand for ever-quicker deliveries
from online shopping.
The Postal Service reported a
loss of $2.7 billion for the fiscal
year that ended Sept. 30. That
was better than a $5.6 billion
loss in the prior year but was
mainly because of fluctuations in
interest rates that reduced
workers’ compensation ex-
penses.
—Associated Press
Arts article on Monday about
this week’s sales in New York
at the major auction houses.
A study by the University of
California, Davis, found a 6%
reduction in the use of public
transit by people who use app-
driven ride-hailing services.
The Numbers column Saturday
about traffic congestion incor-
rectly implied the reduction
was for all transit users.
THE WALL STREET JOURNAL.
Ex-Pimco
CEO Is
Candidate
For Fed
Vice Chair
BY NICK TIMIRAOS
AND KATE DAVIDSON
The White House is consid-
ering economist Mohamed El-
Erian as one of several candi-
dates to serve as the Federal
Reserve’s vice chairman, ac-
cording to a person familiar
with the matter.
The process of selecting the
central bank’s No. 2 official be-
gan this month after President
Donald Trump nominated Fed
governor Jerome Powell to suc-
ceed Fed Chairwoman Janet
Yellen when her term expires
next February, and the search
was described by people famil-
iar with the process as still in
its early stages.
Mr. El-Erian, the former
chief executive of Pacific Invest-
ment Management Co. and a
former deputy director of the
International Monetary Fund, is
one of several candidates under
consideration for the vice chair
position, and no decisions have
been made, according to the
person familiar with the matter.
The White House has placed
a heavy focus on selecting a
vice chair with a strong back-
ground in monetary policy, this
person said.
Separately, a Kansas
banking regulator is
being considered for a
seat on the Fed board.
Separately, the White House
is considering the nomination
of a Kansas banking regulator
for a seat on the Fed’s board of
governors, according to people
familiar with the matter.
Michelle Bowman was con-
firmed as the Kansas bank com-
missioner in January and could
be nominated to a spot re-
served for a community banker
or regulator of community
banks. In 2014, Congress re-
served one of seven seats on
the Fed’s board for a commu-
nity banker and the position
has never been filled.
Mr. Trump has an opportu-
nity to reshape the central
bank’s policy-making team dur-
ing his first year in office. The
Fed’s powerful seven-member
board of governors has three
vacancies, including the seat for
the vice chairman. He would
have a fourth opening to fill if
Ms. Yellen leaves the Fed after
stepping down as chairwoman.
Mr. Trump’s first pick for the
board, Randal Quarles, took of-
fice in October as Fed vice
chairman of supervision.
Investors have been hungry
for clues about how closely Mr.
Trump’s Fed nominees might
hew to Ms. Yellen’s policy of
slowly raising interest rates
from very low levels.
Mr. Trump has said he favors
low interest rates and wants to
see substantial deregulation.
 Central-bank chiefs defend
stimulus..........................................A7
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THE WALL STREET JOURNAL.
Papal Agenda Meets Bishops’ Resistance
BY IAN LOVETT
AND FRANCIS X. ROCCA
BALTIMORE—The U.S. Con-
ference of Catholic Bishops
chose a conservative arch-
bishop for a key post Tuesday,
signaling resistance to Pope
Francis’ vision for the church
among the U.S. hierarchy.
Archbishop Joseph Nau-
mann, of Kansas City, was
elected chairman of the com-
mittee on Pro-Life Activities.
A conservative was
elected chairman of
the committee on
Pro-Life Activities.
In a 96-82 vote, he defeated
Cardinal Blase Cupich, of Chi-
cago, who is seen as a liberal
in the church and a close ally
of the pope.
The vote breaks a long-
standing tradition of the posi-
tion being held by a cardinal—
an unusual lapse of deference
in a highly rank-conscious
body—and suggests that Cath-
olic leaders in the U.S. remain
largely resistant to the changes
Pope Francis is trying to bring.
Like all the bishops, Arch-
bishop Naumann and Cardinal
Cupich are both strong oppo-
nents of abortion and euthana-
sia. Archbishop Naumann said
he would keep the committee
focused on those two issues.
MATT MCCLAIN/THE WASHINGTON POST/GETTY IMAGES
The ABA said judicial candidates Brett Talley, above, and Steve Grasz, below, were unqualified to serve.
GOP, Bar Association Tangle
Over Judicial Nominations
BY JOE PALAZZOLO
The American Bar Associa-
tion has been a key gatekeeper
for the federal courts since it
began evaluating judicial nomi-
nees in the 1940s, but it is los-
ing influence among Republi-
cans in the U.S. Senate who
view it as a liberal group.
Tensions between Senate
Republicans and the associa-
tion, the largest organization
of lawyers in the nation, have
escalated in recent weeks after
the ABA pronounced a Ne-
braska lawyer unfit to serve on
the Eighth U.S. Circuit Court of
Appeals in St. Louis, citing his
“deeply-held social agenda.”
“We should completely dis-
pel with the fiction that the
American Bar Association is a
fair and impartial arbiter of
facts,” Sen. Ben Sasse (R.,
Neb.), said on the floor of the
Senate earlier this month.
Pamela Bresnahan, chair-
woman of the ABA committee
that examines federal judicial
candidates, is scheduled to tes-
tify before the Senate Judiciary
Committee Wednesday. Repub-
lican senators are expected to
interrogate her on the associa-
tion’s treatment of Steve Grasz,
the Eighth Circuit nominee.
In a submission to the Sen-
ate panel, Mr. Grasz wrote
that a member of the evalua-
tion committee that inter-
viewed him repeatedly re-
ferred to Republicans and
conservatives as “you guys”
and asked for Mr. Grasz’s per-
sonal views on abortion, the
death penalty and adoption by
same-sex couples.
Mr. Grasz, senior counsel in
the Omaha office of Husch
Blackwell LLP, wrote that the
interviewer pressed him to ad-
mit that his personal views
would infect his judicial work.
The Senate panel could vote on
his nomination as soon as
Wednesday
* * * *
Cardinal Cupich, mean-
while, indicated he would
have broadened the commit-
tee’s focus to include other is-
sues, like the death penalty,
health care and poverty—a
list more in line with Pope
Francis’ priorities.
The cardinal is a clear fa-
vorite of Pope Francis, who
appointed him archbishop of
Chicago in 2014, then named
him to the Vatican’s Congrega-
tion of Bishops, which helps
shape the next generation of
the hierarchy. The pope ele-
vated him to the rank of cardi-
nal last year.
“It is clear since 2013 that a
majority of them [the bishops]
sees the message of Francis’
pontificate, esp. on life and
marriage, as not adequate for
the Catholic Church in the
U.S.A.,” Massimo Faggioli, a
theologian at Villanova Uni-
versity, said on Twitter after
the vote.
But the bishops also made
protection for immigrants and
refugees a theme at their an-
nual meeting here, marking a
point of unity between Pope
Francis and the U.S. hierarchy.
Stephen Schneck, a former
director of the Institute for
Policy Research and Catholic
Studies at the Catholic Univer-
sity of America, said the vote
indicated continued resistance
to Pope Francis among the U.S.
bishops.
“This is obviously a break
with tradition, in that it’s go-
ing to someone who’s not a
cardinal,” Mr. Schneck said.
Ms. Bresnahan declined to
comment before her testimony.
But in an October statement
she said the committee con-
ducted interviews of more than
200 of Mr. Grasz’s peers, many
of whom raised concerns about
his ability to remain impartial
as a judge.
For decades, the ABA’s
Standing Committee on the
Federal Judiciary, the evalua-
tion committee’s formal name,
has evaluated judges for their
competence, integrity and judi-
cial temperament, issuing
Judicial candidate
Steve Grasz describes
unfair treatment by
evaluation committee.
grades that range from “well
qualified” to “not qualified.”
The ratings are meant to help
presidents and senators, who
may not be familiar with indi-
vidual judicial candidates,
make informed nominations
and votes.
The association prioritizes
legal experience, favoring at
least 12 years, and experience
trying cases, according to for-
mer officials who worked on
nominations.
Since the administration of
former President John F. Ken-
nedy, the committee has rated
U.S. NEWS
A vote by bishops gathering in Baltimore this week suggests U.S. Catholic leaders remain resistant to Pope Francis’ more liberal agenda.
“But I think it’s a very accurate
picture of where the U.S. epis-
copacy is in relation to the ef-
forts we see coming from Pope
Francis and Rome.”
After the vote, Archbishop
37 nominees “not qualified,”
including 23 recommended by
Democratic presidents and 14
submitted by Republican presi-
dents, an ABA spokesman said.
The two most recent Repub-
lican presidential administra-
tions ended the ABA’s longtime
practice of screening potential
judges before the president
nominates them.
This year, the committee
has deemed four nominees
submitted by President Donald
Trump, a Republican, unquali-
fied to serve, including a 36-
year-old Justice Department
official, Brett Talley, who failed
to disclose on his Senate ques-
tionnaire that his wife is chief
of staff to the top lawyer in the
White House.
Seven nominees of former
President George W. Bush, a
Republican, received unquali-
fied ratings. Former President
Barack Obama, a Democrat
who allowed the organization
to review candidates before he
nominated them, sent only
judges deemed qualified or
better by the group to the Sen-
ate, according to a former
White House lawyer.
The Republican-controlled
Senate Judiciary Committee
has held four confirmation
hearings on Mr. Trump’s judi-
cial nominees before the ABA
completed its evaluations,
which association members
have viewed as a snub.
Sen. Chuck Grassley (R.,
Iowa), chairman of the Senate
Judiciary Committee, “does
not believe that outside
groups should influence the
schedule of the Judiciary
Committee’s official business,”
a spokesman said.
Sen. Dianne Feinstein (D.,
Calif.) has criticized the prac-
tice, noting that past Republi-
can and Democratic leadership
nearly always waited for the
ABA to complete its review be-
fore holding hearings.
Wednesday, November 15, 2017 | A3
PATRICK SEMANSKY/ASSOCIATED PRESS
Naumann acknowledged that it
©T&CO. 2017
had been “a long time” since
anyone other than a cardinal
had held the post. “It’s an
honor that the bishops chose
me,” he said.
A TIFFANY HOLIDAY
House
Passes
Defense
Policy Bill
BY BEN KESLING
AND PAUL SONNE
WASHINGTON—The House
of Representatives overwhelm-
ingly passed an annual defense
policy bill on Tuesday, sending
a recommendation for a boost
in military funding to the Sen-
ate for approval before it
heads to President Donald
Trump for his signature.
The National Defense Au-
thorization Act for 2018 desig-
nates nearly $700 billion for
defense programs, surpassing
current budget spending caps
established in 2011 and ex-
ceeding by $26 billion the
amount that Mr. Trump origi-
nally sought, though he more
recently boosted the number
he said he would support.
The House passed the mea-
sure, known commonly as the
NDAA, which had been agreed
upon in a House-Senate con-
800 843 3269 | TIFFANY.COM
ference committee, by a vote
of 356-70.
“Over the last several years,
we have seen an increase in
threats and a decrease in
funding for our military,” said
Rep. Mac Thornberry (R.,
Texas), chairman of the House
Committee on Armed Services,
in a statement. “This year’s
NDAA begins to rebuild our
military and to ensure we can
defend the American people.”
The defense authorization
measure, which increases
spending on readiness, train-
ing and equipment, follows a
year of accidents and mishaps,
including those involving Ma-
rine Corps aircraft and Navy
ships. A damning report re-
leased earlier this year
showed two fatal naval acci-
dents occurred because sailors
were poorly trained and over-
worked.
Mr. Thornberry added that
Congress needs to ensure the
money to pay for these pro-
grams is approved as well. Un-
der longstanding procedures, a
defense-appropriations mea-
sure comes after the authori-
zation bill.
“Unless we follow the NDAA
with an appropriations bill at
the same levels, none of this
work can begin,” he said in a
statement. “Securing those ap-
propriations must be Con- CLASSIMA Starting at
gress’s top priority before the Collection $990
year ends.”
One of the most-touted pol-
icy measures in the bill is a
boost in troop pay, fully fund- GLEIM / Palo Alto, CA / 650.325.3533
ing a 2.4% increase in pay and EISEMAN / Dallas, TX / 214.369.6100
preserving payments to
HAMILTON / Princeton, NJ / 609.683.4200
spouses of those who have
died on active duty or in re-
tirement. It also boosts fund- www.baume-et-mercier.com
ing for missile programs by
$4.4 billion.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Wednesday, November 15, 2017
Flood-Insurance Revamp Advances
BY ANDREW ACKERMAN
WASHINGTON—The House
voted largely along party lines
to revamp the federal flood-in-
surance program, which expires
in December and has struggled
in recent years to keep pace
with record disaster payouts.
The measure passed Tues-
day with a 237-189 vote, largely
with Republicans for it and
Democrats against it. The bill
includes provisions designed to
spur more private-sector par-
ticipation in the flood-insur-
ance market as well as new
penalties for homeowners who
The heavy debt load
led Congress to cancel
$16 billion of the
flood program’s debt.
repeatedly receive federal in-
surance payouts for flood dam-
age.
The Senate, which must
now pass its own overhaul of
the program, might not act
until next year, according to
congressional aides.
House Financial Services
Committee Chairman Jeb Hen-
sarling (R., Texas), the mea-
sure’s primary author, agreed
to ease aspects of its provi-
sions in a move aimed at se-
curing support from coastal
lawmakers who had balked at
what they viewed as unduly
onerous restrictions.
“It is a bankrupt program
that is being funded, regretta-
bly, by a bankrupt nation,” Mr.
Hensarling said.
Business Groups Press Efforts to Protect ‘Dreamers’
BY LAURA MECKLER
WASHINGTON—Large U.S.
businesses and their lobby
groups are redoubling a push
for legislation to protect
young people brought to the
U.S. illegally as children, urg-
ing lawmakers to act before
the year is out.
On Wednesday, executives
from about 40 companies
travel to Capitol Hill to lobby
members of Congress, with
some of them bringing along
so-called Dreamers who work
for them. Also this week, the
advocacy group Fwd.us, which
is backed by tech companies,
is releasing a study on the
number of people who would
lose their jobs if Congress
doesn’t act.
Early next month, a group
called New American Economy
is planning a day of pro-
Dreamer events across the
country, involving local cham-
bers of commerce and busi-
ness leaders.
The push comes as key Sen-
MOORE
Continued from Page One
gay marriage and to take down a
Ten Commandments monument
on state property. His Senate
campaign has been built around
his persona as an anti-estab-
lishment outsider.
As Mr. McConnell and others
spoke openly of blocking him,
Mr. Moore sent a message on
Twitter: “The good people of
Alabama, not the Washington
elite who wallow in the swamp,
will decide this election!
#DitchMitch.” Later, he
tweeted: “Mitch McConnell’s
days as Majority Leader are
coming to an end very soon.
The fight has just begun.”
Speaking to supporters at a
church in Jackson, Ala., on
Tuesday night, Mr. Moore por-
trayed himself as a victim of at-
tacks by the media and both po-
litical parties. “I am the only
one who can unite Democrats
and Republicans,” he joked,
“because I seem to be opposed
by both of them.”
His fate may be shaped by
the Alabama Republican Party,
which could withdraw its sup-
port for his campaign but is
powerless to get his name off
the ballot. The party’s steering
committee may meet later this
week to consider the matter,
Republicans familiar with the
situation said.
Among the ideas being dis-
cussed: having Mr. Sessions
quit the cabinet and reclaim his
seat, though it is unclear how
exactly that might happen; urg-
ing Mr. Strange to quit before
At issue is the National
Flood Insurance Program, cre-
ated more than 50 years ago
because private insurers were
unwilling to risk catastrophic
flood losses. The program’s
heavy debt load led Congress
last month to cancel $16 bil-
lion of its debt. It now has
about $6 billion to pay claims
and roughly $10 billion left
that it can borrow from the
Treasury Department, accord-
ing to the Federal Emergency
Management Agency, which
manages the program.
One provision in Tuesday’s
House bill, aimed at homes
with repeat claims, would bar
the program from offering in-
surance to properties that ac-
crue future claims—meaning
claims made after the bill be-
comes law—in excess of three
times the amount of the re-
placement value of the struc-
ture. An earlier version of the
legislation included past
claims in that calculation.
Democrats said the bill
would make the program too
expensive for low-income pol-
icyholders.
Robert Moore, a senior pol-
icy analyst at the environmen-
tal group Natural Resources
Defense Council, which is neu-
tral on the legislation, said
one of its shortcomings is
that it doesn’t do anything to
address the cumbersome sys-
tem in which the program
buys out homeowners of
properties that repeatedly
flood. “It’s inexcusable that
the only timely assistance
that we offer people is to re-
build, when that’s in nobody’s
interest,” he said.
—Natalie Andrews
contributed to this article.
ate Republicans work to find a
package of immigration mea-
sures that can win bipartisan
support. A group of GOP sena-
tors is close to agreement on a
package that includes border
security measures along with
legalization for a band of
young undocumented immi-
grants who are now protected
by the Deferred Action for
Childhood Arrivals, or DACA,
program.
Republicans also favor en-
forcement aimed at people liv-
ing illegally inside the country,
though they know it will be
harder to win Democratic sup-
port for those measures. An-
other question is how many
people will be covered by the
legislation, with Republicans
favoring a group that is more
limited than versions pre-
ferred by Democrats.
In September, President
Donald Trump ended the
DACA program, established by
executive order in the previ-
ous administration, which pro-
vides work permits along with
the Dec. 12 election to create a
new vacancy; and letting the
election go ahead and risking a
loss to Mr. Jones.
A Justice Department
spokesman declined to comment
about the possibility of the at-
torney general stepping down to
return to the Senate. A person
close to Mr. Sessions, who spent
five hours Tuesday being ques-
tioned by the House Judiciary
Committee about his contacts
‘His campaign is
collapsing,’ Senate
GOP leader Mitch
McConnell said.
with Russian officials during the
campaign, said he has been tell-
ing friends and associates he
isn’t interested in his old job.
If Mr. Sessions were to quit
as attorney general, it would
raise questions about the future
of special counsel Robert Muel-
ler’s investigation of alleged
P W L C 10 11 12 H T
U.S. NEWS
Where repetitive loss
properties are located
Number of
properties by
ZIP Code
Properties by total payout amount
As a share of total properties and payout
Properties with a total
payout amount of:
$1 million or more 1.7%
$750,000 -$1M 1.0%
$500,000 -$750,000 2.8%
$250,000 -$500,000 16.7%
Less than $250,000 77.8%
Note: Condominiums are counted as a single property.
Source: Data provided by the Natural Resources Defense Council via FEMA
protection from deportation.
Absent congressional action,
those benefits will begin to
end in March.
Some Republicans oppose
legislation giving these people
legal status as a form of am-
nesty that will encourage
more illegal immigration. Oth-
ers support it but only if cou-
pled with more enforcement.
Democrats are pushing for
legislation addressing the
matter before the year is out,
and hope to force the matter
as part of a year-end spending
bill, when their votes will be
needed.
Neil Bradley, chief policy of-
ficer at the U.S. Chamber of
Commerce, which plans a
Wednesday news conference,
said their lobbying will be di-
rected at persuading Republi-
cans to approve the protec-
tions but also to Democrats.
Democrats support a legaliza-
tion program, he noted, but
may need to be pushed to
make compromises needed to
win GOP support.
ties between Russia and Trump
campaign associates during the
2016 presidential election. Mr.
Trump has denied any collusion
with Moscow, which has said it
didn’t meddle in the campaign.
Mr. Sessions has recused
himself from that probe be-
cause of his role as a top sup-
porter and adviser to the
Trump campaign. Any succes-
sor would likely face calls from
Democrats to pledge not to re-
move Mr. Mueller or interfere
in the probe.
The GOP’s hands are largely
tied because under Alabama
election law, it is too late for
Mr. Moore’s name to be re-
moved from the ballot. Alabam-
ians have been casting absentee
ballots with his name on them
since Oct. 18.
Terry Lathan, chairman of
the Alabama Republican Party,
hasn’t responded to requests
for comment since the scandal
broke. But in a Sunday inter-
view with the Alabama Political
Reporter, she issued a warning
against GOP officials endorsing
a write-in candidate or backing
Mr. Jones.
“It would be a serious error
for any current elected GOP of-
ficial or candidate to publicly
endorse another party’s candi-
date, an independent, a third-
party or a write-in candidate in
a general election as well,” Ms.
Lathan was quoted as saying. “I
have heard of no GOP elected
official or candidate that is
even considering this option.”
Even if Mr. Moore wins, GOP
leaders worry that having him
in the Senate will be a political
liability for all Republicans up
for re-election in 2018.
G K B F A M 1 2 3 4 5 6 7 8 9 O
400
300
200
100
1 hearing about the process Presi-
Houston
Gulf Coast states
49% of properties
Percentage of Percentage of
all properties all payouts
14.8%
4.2%
8.1%
26.2%
46.7%
Protesters this month called on the Senate to pass legislation in support of DACA protections.
Mr. McConnell said Tuesday
that if Mr. Moore is elected, he
would be sworn in but would
immediately be subject to an
ethics investigation, including
testifying under oath, and the
option of expelling him would
be on the table. That would
pave the way for the governor
to appoint a new successor, in-
cluding putting Mr. Sessions
back in his old seat.
At issue are allegations re-
ported by the Washington Post
last week that Mr. Moore, when
he was in his early 30s, had ini-
tiated relationships with four
teenagers—including sexual ad-
vances made on one girl who
was 14. A fifth woman Monday
held a press conference and de-
scribed a 1977 incident when
Mr. Moore allegedly assaulted
her in a car when she was 16.
Mr. Moore has denied the re-
ported incidents occurred.
Democrats had held little
hope for the race when Mr. Ses-
sions left because Alabama
hasn’t had a Democratic sena-
tor since the 1997 retirement of
Sen. Howell Heflin. It went for
President Donald J. Trump with
62% of the vote in 2016. When
Mr. Sessions ran for reelection
in 2016, Democrats didn’t field
a candidate.
Mr. Jones is well known in
the civil-rights community for
having prosecuted Ku Klux Klan
members for the 1963 Birming-
ham church bombing that killed
four girls. He has been endorsed
by civil-rights icon Rep. John
Lewis (D., Ga.), who campaigned
with Mr. Jones last week.
—Kristina Peterson
and Del Quentin Wilber
contributed to this article.
I X X ******
Northeast states
Account for 31% of
repetitive loss properties
New
York
Virginia
and the
Carolinas
7% of
properties
New
Orleans
Payouts per property
Among all properties
Payouts
2 811 properties
3 out of step with U.S. national se-
1,045
4 4,058
5 3,304
6 2,109
7 1,344
8 809
9 477
10 332
11 203
12 129
13 90
14 65
15+ 204
THE WALL STREET JOURNAL.
Sessions Now Recalls
Discussion of Russia
BY ARUNA VISWANATHA
AND BYRON TAU
Attorney General Jeff Ses-
sions said Tuesday that he
now recalls a 2016 meeting
with a Trump campaign ad-
viser at which the aide spoke
about contacts with Russians,
after earlier saying he knew of
no such contacts.
Mr. Sessions’ comments, in
an appearance before the
House Judiciary Committee,
highlighted the challenges fac-
ing investigators, lawmakers
and others in assembling a pre-
cise account of the communica-
tions between Trump campaign
officials and people connected
to the Russian government.
In a five-hour appearance,
Mr. Sessions blamed a turbu-
lent campaign and faulty mem-
ory for his failure to recall
contacts that two former
Trump campaign advisers have
disclosed in recent weeks.
“None of you had a part in
the Trump campaign,” Mr. Ses-
sions told committee members.
“And it was a brilliant cam-
paign, I think, in many ways.
But it was a form of chaos ev-
ery day from day one.”
Mr. Sessions, a former sena-
tor from Alabama, served as a
senior adviser to the Trump
campaign on national-security
issues, and he has been dogged
by the continuing investiga-
tions into Russian meddling in
the 2016 campaign. Russia has
THE WALL STREET JOURNAL.
WASHINGTON
WIRE
CONGRESS
President’s Nuclear
Authority Scrutinized
U.S. senators took a rare look
Tuesday at the decades-old presi-
dential authority to launch a nu-
clear strike, posing questions at a
dent Donald Trump would follow
if he were to order such an attack.
Sen. Bob Corker (R., Tenn.), the
Senate Foreign Relations Commit-
tee chairman and a critic of Mr.
Trump, didn’t explicitly criticize
the president, a fellow Republican.
But after an hour of testimony
with little overt reference to Mr.
Trump, Sen. Chris Murphy (D.,
Conn.) said Mr. Trump’s presi-
dency is what has prompted a re-
newed focus on this issue.
“We are concerned that the
president of the United States is
so unstable, is so volatile, has a
decision-making process that is so
quixotic, that he might order a nu-
clear-weapons strike that is wildly
curity interests,” Mr. Murphy said.
The White House didn’t re-
spond to a request to comment.
—Felicia Schwartz
CYBERSECURITY
U.S. Computers Have
Russian Software
About one-sixth of U.S. agen-
cies found a Russian cybersecurity
firm’s software on their computers
after the government ordered
them to look for the company’s
products and remove them. The
government said 15% of the 96
agencies that responded found
the products on their systems.
—Paul Sonne
SHAWN THEW/EPA/SHUTTERSTOCK
denied meddling in the elec-
tion, and Mr. Trump and his
team have said they didn’t col-
lude with the Kremlin.
The hearing came weeks af-
ter Trump campaign foreign-
policy advisers Carter Page and
George Papadopoulos said they
had informed Mr. Sessions
about contacts with Russians
during the campaign. Mr. Ses-
sions has several times testi-
fied before the Senate that he
was unaware of any contacts.
Mr. Papadopoulos, a cam-
paign adviser who pleaded
guilty to lying to the Federal
Bureau of Investigation, told
law-enforcement officials that
he was in a March 31, 2016,
meeting with Mr. Sessions
where he suggested setting up
a meeting between Donald
Trump and Russian President
Vladimir Putin.
Separately, Mr. Page testified
this month that he told Mr. Ses-
sions at a dinner in the summer
of 2016 that he was traveling to
Russia, where he gave a speech
at a university in Moscow. Dur-
ing that visit, Mr. Page met
with Russian Deputy Prime
Minister Arkady Dvorkovich.
Mr. Sessions said Tuesday
that he now remembers the
March 2016 meeting. He also
said that while he has no rea-
son to doubt Mr. Page’s testi-
mony, he doesn’t recall his
presence at the separate dinner.
—Del Quentin Wilber
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
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The future of wealth since 1818.

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U.S. NEWS

U.S. Has Leverage Over Nafta, Ross Says

BY JACOB M. SCHLESINGER held significant leverage over
Mexico and Canada. They
WASHINGTON — Com- have said those countries
merce Secretary Wilbur Ross have begun seeking trade
defended the Trump adminis- deals with other countries
tration’s aggressive strategy that could soften the blow
for renegotiating the North from diminished access to the
American Free Trade Agree- U.S.
ment, suggesting that the U.S. Michael Froman, who ran
can press Mexico and Canada trade policy for President Ba-
into making big concessions rack Obama, also questioned
because they have more to Mr. Ross’s confidence in U.S.
lose if the pact collapses. power. “While it’s true that
A U.S. withdrawal “would Mexico and Canada are more
be devastating to the Mexican dependent on us than we are
economy,” Mr. Ross told The on them, it turns out they
Wall Street Journal CEO Coun- have trade politics too,” said
cil on Tuesday. “It’s also a big- Mr. Froman, who was in the
time problem for Canada,” he audience for Mr. Ross’s re-
said. marks. “And there are limits to
He noted that because the degree to which you can
those countries are more de- push them and still reach an
pendent on the U.S. than it is agreement,” he said.
on them, the termination of During his appearance, Mr.

BEN NELMS/REUTERS
the 23-year-old pact “would be Ross also expressed frustra-
far more damaging to them tion with the vocal disagree-
than to us.” ment from American business
Mr. Ross said it was likely and lawmakers with the ad-
the two countries would ministration’s Nafta negotia-
“come to their senses and A worker checks a load of logs in British Columbia. Ottawa has escalated its fight against declared U.S. tariffs on Canadian timber. tion strategy.
make a sensible deal.” The longtime investor was
President Donald Trump Canada Steps Up pute-resolution panel under the Canada has repeatedly said it Tuesday’s development “sig- asked to compare the process
has branded Nafta “a disaster,” terms available through North won’t budge on its insistence nals the importance to the Cana- of negotiating business deals
and threatened to withdraw Lumber Tariff Fight American Free-Trade Agree- the panel system remain in dian government—and its Nafta with trade deals.
unless the two countries agree ment. These expert panels have place. negotiators—of keeping the dis- “It’s much better to negoti-
to rewrite the pact. Negotia- the power to overturn or sus- A spokesman for Canadian pute-settlement provisions in the ate anything in a conference
tions on a new Nafta began in OTTAWA—Canada said it in- tain tariffs imposed by the U.S., Foreign Minister Chrystia Free- deal,” said Chad Bown, a senior room than in an open sta-
August, and a fifth round of tends to escalate its legal fight Canada or Mexico on goods land said the U.S. decision to fellow at the Peterson Institute dium,” Mr. Ross said. “That’s a
talks is slated to open in Mex- against the U.S. Commerce De- from one of its Nafta partners. impose duties against Canadian for International Economics in very big complication.”
ico City this week. The parties partment’s decision to slap tar- The Trump administration lumber imports is “unfair, un- Washington. How to deal with He explained that “as one
have said they aim to reach a iffs of roughly 20% or more on wants to largely repeal the dis- warranted and deeply troubling.” the dispute-resolution panels special-interest group—agri-
deal by March. Canadian lumber imports. pute-settlement system in talks He added Canada “will forcefully have emerged as a major flash- culture for example—gets ner-
The talks hit a snag during The Canadian government to renegotiate Nafta, which re- defend” its lumber industry, in- point in Nafta renegotiations. vous, they start screaming and
the last round, in Washington filed a notice to set up a dis- start later this week in Mexico. cluding through litigation. —Paul Vieira yelling publicly.” Then “Con-
in October, after the U.S. put gress people, they start
forth proposals that would screaming and yelling publicly
significantly alter the agree- Among them: a proposal agreed to renew it, and a plan and in the U.S. to qualify for the effect on their operations and that just complicates the
ment in ways the trading part- that would “sunset” the agree- to increase the requirement Nafta tariff breaks. if Nafta were to collapse and negotiations,” he said.
ners have branded unaccept- ment, making it expire after for how many cars would need Many U.S. business leaders have disagreed with Mr. “Frankly, it makes the nego-
able. five years unless the parties to be made in North America have expressed concern about Ross’s assertion that the U.S. tiations harder,” he said.

Doubts Emerge on Tax Plan Details Ending Mandate Brings

BY RICHARD RUBIN Risks to Cost, Coverage
WASHINGTON—Lawmak- BY STEPHANIE ARMOUR peal in their tax package. An
ers and tax lawyers are raising array of industry groups—in-
doubts about a crucial piece of Republican plans to end the cluding the American Medical
the Senate tax plan that would Affordable Care Act’s rule that Association and America’s
affect small businesses, part- most people must have health Health Insurance Plans, a major
nerships and real-estate devel- insurance would allow con- insurers’ organization—wrote
opers as the Senate Finance sumers who don’t want cover- congressional leaders urging
Committee takes up the over- age to shed it, but it could them to keep the mandate.
haul this week. drive premiums higher for But some House Republi-
The Senate’s plan for taxing those who keep it. cans applauded Senate Repub-
so-called pass-through busi- Eliminating the individual licans’ move after House GOP
nesses such as partnerships mandate would increase the leaders opted not to include
and S corporations departs number of people without in- the repeal in their own tax
from the House approach. It surance by four million, ac- overhaul.
features a deduction of 17.4% cording to the nonpartisan “It appears the Senate is
of income instead of a special Congressional Budget Office, a keeping its promises,” said the
25% rate that only applies to number that it says would rise House Republican Study Com-
some business income, as in to 13 million by 2027. mittee, a conservative group
WIN MCNAMEE/GETTY IMAGES

the House bill. But those who buy private that represents numerous GOP
A pass-through provision insurance, rather than getting House members. “The House
that is too generous to busi- it at work or through a govern- should do the same. Let’s re-
nesses risks busting the $1.5 ment program, would see their peal the individual mandate
trillion cap on the size of the premiums rise by about 10% in and restart the process of re-
tax cut under the GOP tax most years of the coming de- pealing Obamacare.”
plan. But an overly restrictive cade, the CBO has forecast. The inclusion of the man-
rule could turn business The individual mandate re- date will likely be accompa-
groups against the Republican At the Senate finance panel, doubts surfaced on how tax changes would affect pass-through firms quires most people who can nied by a move to advance bi-
tax agenda. afford coverage to have it. partisan legislation aimed at
“Nobody has any idea how corporate rate to 20% from consultants, wouldn’t get any somewhere about 33% to 35% Those who decline must pay a shoring up the ACA’s fragile
this works,” said Victor Flei- 35% and have promised pass- of their income taxed at the rather than 25%.” fine of 2.5% of household in- individual insurance markets.
scher, a tax law professor at throughs rough parity with a lower rate. The committee’s Republican come or $695 a person, which- That legislation would restore
the University of San Diego rate cut of their own. The S Corporation Associa- aides said the GOP may sug- ever is higher. About seven payments insurers use for sub-
who was, until recently, a The framework released by tion told its members the Sen- gest changes soon to the plan. million people in 2016 re- sidies to low-income consum-
Democratic aide to the Senate the Trump administration and ate bill “falls well short” of “This will be something ported paying a penalty for ers. President Donald Trump
finance panel. “Nobody knows congressional Republicans in promises lawmakers had they’ll reconcile” between the not having coverage the year recently cut off those pay-
the answers, and that’s what September called for a 25% made. House and Senate, Treasury before, according to the Inter- ments, saying they hadn’t
happens when you try to jam top rate for pass-through in- Sen. Ron Johnson (R., Wis.) Secretary Steven Mnuchin said nal Revenue Service. been properly authorized by
something through on short come. Neither the House nor said Monday he was frustrated Monday at The Wall Street The mandate’s goal is to en- Congress.
notice.” Senate bills truly provide that by the process and by a result Journal’s CEO Council. “In sure that young, healthy people Democrats have called for a
Regular corporations pay rate for most income. that would leave pass- both these cases, what is im- obtain coverage to help offset vote on the bipartisan bill, but
the corporate tax of up to 35%, The House shows a 25% throughs paying higher tax portant is that businesses get the costs of older and sicker GOP leaders have been reluc-
and their taxable owners pay a rate, but requires many busi- rates than corporations. the benefit of this and that’s consumers. Knocking down the tant to bring it to the floor be-
second layer of tax on divi- ness owners to report 70% of “We were supposed to leave what’s about growth and the mandate would result in higher cause Mr. Trump has sug-
dends or capital gains. Pass- their pass-through profits as that competitive balance…in economy.” premiums because those gested he wouldn’t back it.
throughs pay no corporate- ordinary income, subject to or- place basically untouched —Siobhan Hughes healthier people would be less Republicans now say they
level tax. Instead, profits pass dinary tax rates as high as when we made American busi- and Nick Timiraos likely to purchase insurance if hope to vote on the legislation
through to owners’ individual 39.6%. That would create a nesses overall globally more contributed to this article. they don’t face a penalty. as a way to diminish any dis-
returns, where they’re taxed at blended top rate of about 35%. competitive,” he said. “I don’t Democrats and industry ruption in the individual insur-
rates up to 39.6%. Professional service busi- know what happened along  Tax-overhaul proposals divide groups castigated Senate Re- ance market sparked by repeal-
Republicans want to cut the nesses, including lawyers and the way, but we’re talking landlords..................................... B18 publicans for including the re- ing the individual mandate.

REPEAL A federal analysis showed

repealing the mandate would
increase by 13 million the num-
ber of people without health in-
Continued from Page One surance by 2027 and increase
nomic-policy goal. So far, in premiums. It also complicates
their effort to overhaul the tax the economics of health cover-
code, they have made progress age by shrinking the pool of
in overcoming internal fric- healthy and younger people
tions over deficits, taxes on who are insured, making it
the wealthy, state and local de- harder to pay for those who
ductions, child tax credits and end up with big health ex-
business taxation. But they ha- penses. All that could spook
ven’t solved all those chal- moderate Republicans who
lenges yet, and Tuesday’s balked at earlier attempts to re-
move adds health care to that peal the ACA because it would
list. raise the number of uninsured.
Senate Majority Leader The repeal, though, would
Mitch McConnell (R., Ky.) said lower the federal deficit an es-
Tuesday that he was confident timated $318 billion over a de-
in the tax bill’s chances. He cade. Moreover, Republican
contrasted it with the effort to lawmakers have been pressed
repeal the ACA outright ear- by President Donald Trump to
lier this year. “Every meeting I knock down the mandate, a re-
had on health care was like a quirement that conservatives
trip to get a root canal,” he see as onerous and which the
said at The Wall Street Jour- president could weaken
nal’s CEO Council. “Nobody through executive action even
wanted to be there.” if GOP lawmakers don’t act.
Republican aides cautioned
Tuesday that they couldn’t
guarantee there were enough
votes to pass a tax bill with
the health-care provision at-
tached. The Finance Commit-
tee aims to finish the bill this
week, setting up a vote by the
full Senate after Thanksgiving.
Republicans pitch the
mandate repeal as a
tax cut for middle-
income households.
Democrats panned the move
and pointed to Republicans’ in-
sistence on cutting the corpo-
rate tax rate to 20%. “The tax
bill is going to hit the Ameri-
can people with a health-care
double whammy,” said Sen.
Ron Wyden (D., Ore.), warning
that millions of people would
lose their health insurance or
pay higher premiums.
House Republicans, who aim
to pass their own version of a
would limit defections and
pass their own tax bill, which
doesn’t address the individual
mandate.
preserves a $10,000 deduction
for property taxes; the Senate
bill would repeal that, along
with deductions for state and
tax plan Thursday, began the House Speaker Paul Ryan local income and sales taxes.
day wary of moving too fast on (R., Wis.) indicated Tuesday Focus in the Senate will
taxes on their own. Among evening that the House would now turn to Republicans who
their worries was that Mr. wait to see if the Senate can may be hesitant to vote for a
Trump might criticize their ef- pass a tax bill that repeals the package that raises the num-
fort, as he did during the individual mandate. ber of people without health
health-care fight earlier this “We didn’t want to compli- coverage.
year. They also worried about cate tax reform and make it GOP Sens. Susan Collins of
whether Senate Republicans harder than it otherwise would Maine and John McCain of Ari-
would be able to follow be,” Mr. Ryan said at a Fox zona haven’t indicated they
through and pass tax legisla- News town-hall meeting on would oppose the tax bill over
tion, avoiding a repeat of the taxes Tuesday evening. the individual mandate. Both
tensions that doomed their “I want to support a good voted against the final Senate
health-care bill earlier this tax reform bill in one form or effort to dismantle the ACA in
year. the other here. So I think it’s late July, along with Sen. Lisa
“We just want to know if important we keep the House Murkowski (R., Alaska). “My
we’re headed for the same bill moving,” said Rep. Doug concern is that if we combine
rocks for being the first kid to LaMalfa (R., Calif.), who said the health-care issues with tax
go to the blackboard to try to the tougher vote will be on the reform, we make it far more
spell the word,” said Rep. Mark final product of a House-Sen- controversial,” Ms. Collins told
Amodei (R., Nev.), who has ate agreement. “That’s where reporters Tuesday.
told House Republican leaders the rubber meets the road.” Mr. McCain said he needed
that he is still undecided. Other differences between to evaluate repealing the indi-
Still, House leaders said the House and Senate linger. vidual mandate as part of the
they were confident they For example, the House bill broader tax bill.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. * * Wednesday, November 15, 2017 | A7

WORLD NEWS
Central Bankers Defend Stimulus Exports
Chiefs from U.S.,
Boost
Europe, Japan and U.K.
say their words have
Japanese
become a policy tool Economy
ARMANDO BABANI/REX/SHUTTERSTOCK/EUROPEAN PRESSPHOTO AGENCY

BY TOM FAIRLESS BY KOSAKU NARIOKA

FRANKFURT—The heads of TOKYO—Japan’s economy

four of the world’s most im- grew at an annualized pace of
portant central banks defended 1.4% in the July-September
their sweeping crisis-fighting quarter, marking its longest
measures in a rare joint ap- growth streak in 16 years with
pearance, and discussed how help from stronger global de-
words themselves have be- mand.
come a vital policy tool. The growth for the seventh
The leaders of the Federal straight quarter is welcome
Reserve, European Central news for Prime Minister
Bank, Bank of Japan and Bank Shinzo Abe, who won a new
of England—whose terms all mandate from voters in a na-
end in the next two years— tional election on Oct. 22 to
have relied heavily on verbal continue pushing the world’s
communication in recent years third-largest economy out of
as their policy decisions have years of economic malaise.
grown more complex. From left, Fed Chairwoman Janet Yellen, ECB President Mario Draghi, BOE governor Mark Carney and BOJ governor Haruhiko Kuroda. Private consumption fell an
Janet Yellen’s departure as annualized 1.8% in the quarter,
chair of the Federal Reserve in are looking for greater cer- showing his economic policies
February will mark the begin- tainty about the policy path Bulking Up Germany, Italy Post have yet to rouse consumers.
ning of a long farewell to the than central banks are willing Central bank balance-sheet assets as percentage of gross Gross domestic product
group of central bankers who to provide most of the time.” domestic product
Economic Growth growth for the three-month
helped steer advanced econo- ECB President Mario Draghi period through September was
mies out of the financial-crisis has faced criticism that the 100 % the same as a 1.4% increase
era. The current crop of offi- ECB’s ultralow interest rates Japan FRANKFURT—Germany’s expected by economists polled
cials shared a willingness to hurt savers and pensioners. Mr. gross domestic product grew by The Wall Street Journal.
experiment with unorthodox Draghi hit back on Tuesday, ar- 75 0.8% in the third quarter from The expansion was largely
policies to stimulate their guing that parts of the German the second, the Federal Sta- driven by exports, which rose
economies, and worked closely media were portraying a “dif- tistical Office said, and Italy’s an annualized 6% in the quar-
together at times. ferent…reality” to their readers. economy grew 0.5% in the ter.
50
All four have faced political In a sign of growing confi- period, its national statistics Since Mr. Abe took office in
attacks over their actions. dence that the ECB’s policies institute reported. late 2012, he has been trying
Eurozone
Ms. Yellen, who faced criti- are working, the European The eurozone’s biggest to end years of sluggish
cism from Donald Trump dur- Union’s executive arm last 25 and third-biggest economies growth and deflation through
ing last year’s election cam- week revised up its forecast U.S. benefited from increased de- his Abenomics policy package,
paign, will be the first Fed for eurozone growth this year, mand for their exports as the which is aimed at getting the
chair since the 1970s not to be to 2.2%, which would be the bloc’s $10 trillion economy re- economy into a cycle of rising
0
reappointed. Mr. Trump ac- fastest pace in a decade. mained on course for its wages, spending and inflation.
cused her shortly before the The Japanese economy is 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 strongest year since 2007. Recently, a weaker yen and
election of “doing political also enjoying its best run of Sources: Federal Reserve Bank of St. Louis (U.S. and Japan); —Nina Adam a stronger economy in key
things” by keeping interest growth in more than a decade, European Central Bank (assets); Eurostat (GDP) THE WALL STREET JOURNAL. markets such as China and the
rates low. The Fed raised in- while prices are steadily ris- U.S. have boosted corporate
terest rates once last year, de- ing—though at a moderate rates below zero. The bank’s ing to an improved economy. step down in June 2019, has earnings to a record high.
spite initially signaling it ex- pace well below the bank’s 2% “strong commitment did work However, some of Mr. Abe’s faced criticism for his warnings Earlier in November, stock
pected multiple increases. inflation goal. to some extent,” he said. advisers are calling for a over the economic impact of prices surged to their highest
Ms. Yellen defended her The Bank of Japan has been Mr. Kuroda’s term ends in shake-up candidate. Britain’s departure from the level in more than a quarter-
track record on Tuesday at the at the core of efforts to shake April 2018. While Prime Minis- Mr. Kuroda, 73, hasn’t pub- EU, seen by some U.K. politi- century.
ECB’s Central Bank Communi- off a cycle of weak inflation ter Shinzo Abe said this month licly expressed his intentions. cians as an overly political in- Yet the lack of strong wage
cations Conference in Frank- and growth. BOJ governor that the choice of BOJ gover- He has said a successor could tervention. Mr. Carney repeated growth has been damping con-
furt, arguing that Fed officials’ Haruhiko Kuroda defended his nor was still a “blank slate,” easily continue on the same his call on Tuesday for a “rea- sumer spending and prevent-
interest-rate expectations didn’t track record on Tuesday, in- he said he had a high regard policy path. sonable transition period” that ing the economy from entering
amount to a policy decision. “I cluding a controversial deci- for Mr. Kuroda’s abilities and Bank of England governor could cushion the impact of fully into the cycle sought by
do think market participants sion in 2016 to push interest praised the bank for contribut- Mark Carney, who is due to Brexit on the U.K. economy. Mr. Abe, economists say.

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WORLD NEWS

Trump Ends Trip Focused on Personal Ties

With few ‘deliverables,’
White House says China to Send Envoy
Asia sojourn was about To North Korea
messaging, groundwork
BEIJING—China will send
BY MICHAEL C. BENDER a special envoy to North Ko-
rea this week, according to
MANILA—At each stop on China’s official Xinhua News
his 12-day, five-country Asia Agency.
tour, President Donald Trump Song Tao, a special envoy
emphasized one aspect of his of President Xi Jinping, will
visit above all else: his per- leave for North Korea on Fri-
sonal rapport with the heads day, Xinhua said. It said the
of state who hosted him. visit would include briefings
He played golf with Shinzo on last month’s Communist
Abe, complimenting the Japa- Party congress.
nese prime minister’s accidental The announcement comes

JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES

tumble into a bunker as grace- days after a visit to Beijing
ful. He persuaded South Korean by President Donald Trump.
President Moon Jae-in to meet The U.S. has repeatedly
him at the North Korea border, pushed Beijing to do more to
a visit that thick fog forced pressure North Korea to slow
them to cancel. And he engaged its development of nuclear
in a favorite pastime—making weapons, and Mr. Trump did
jibes at the expense of the U.S. so again during his summit
press corps—along with Philip- with Mr. Xi in Beijing.
pine President Rodrigo Duterte. It wasn’t clear from the
At the end of his stop in Xinhua report whether
Beijing, Mr. Trump beamed Pyongyang’s nuclear program
while sitting next to Chinese would be on the agenda dur-
President Xi Jinping as his ing Mr. Song’s visit.
host played a highlight reel of President Donald Trump waved Tuesday before boarding Air Force One in Manila at the conclusion of a 12-day trip through Asia. —Sofia McFarland
their time together.
Mr. Trump returns to duced,” said Mira Rapp- Korea were verbal and volun- marks in the trip’s final days. really is a sense of respect, rect negotiations on trade that
Washington from his first Asia Hooper, a senior fellow at tary. Instead of focusing on “It was a red carpet like no- perhaps for me a little bit, but will come later, and “of course,
trip with a good deal of bon- Yale’s Paul Tsai China Center. the trade imbalances that he body, I think, has probably really for our country. And I’m North Korea. Looking for allies
homie with his fellow leaders Commercial deals an- “dwells on,” as Chief of Staff ever seen,” Mr. Trump very proud of that.” to help them come to the right
but few tangible outcomes. nounced in China were mostly John Kelly said in Vietnam, said Monday in Manila, sum- Mr. Kelly said the trip was decision about their weapons.”
“This trip will be remem- signals of intent, rather than Mr. Trump recounted his ming up his view of the treat- mostly about messaging, add- One adviser said discussions
bered more for the messages ironclad agreements. New flourishing relationships with ment he received in each of ing that the intent was to lay were already under way for
it sent than the policy it pro- commitments regarding North Asia leaders during public re- the countries he visited. “That the groundwork for more di- another Trump trip to Asia.

Manila Eases the Path for Beijing at Asean Summit

BY BEN OTTO
CH I N A TA I WA N
MANILA—Philippine Presi-
CHINA’S dent Rodrigo Duterte con-
‘9-DASH LINE’ cluded an annual meeting of
Sou th MARITIME
Reefs China is building Southeast Asian nations with
Chin a CLAIM
into artificial islands warm words for China—the
Sea
neighboring power whose ter-
ritorial claims have galvanized
SPRATLY ISLANDS opposition from some of the
China, Taiwan, Malaysia, Brunei, region’s smaller nations at
Philippines and Vietnam claim PH I L I PPI N E S
past summits.
sovereignty over all or parts of
these scattered islands and reefs. Mr. Duterte wrapped up
meetings Tuesday describing
V IE T NAM China as gracious for agreeing
Subi Reef
to begin talks on a long-
Hughes Reef awaited code of conduct in the
South China Sea.
Gaven Reefs The Philippine president
Mischief Reef had established after taking
Fiery Cross Reef
office last year that he
Johnson South Reef wouldn’t challenge Chinese ex-
Cuarteron Reef pansion in the disputed wa-
ters, eliminating a flashpoint
that had roiled gatherings of
the 10-member Association of
Southeast Asian Nations.
BRUNEI
300 miles This year’s Asean summit
was the first to be attended by
300 km
I N D O N ESI A U.S. President Donald Trump.
M A L AYSI A China and the U.S. were
THE WALL STREET JOURNAL. among nations that courted
Asean members with promises
of trade and investment at the
two-day summit, which was
also attended by Chinese
Prime Minister Li Keqiang and
leaders from Japan, Canada
and other nations.
Among declarations at the
summit’s conclusion on Tues-
day was a commitment to ad-
vance negotiations on a free-
trade agreement, the Regional
Comprehensive Economic
Partnership, that includes the
10 Asean nations and six other
states, including China.
The U.S. under Mr. Trump
has continued the Obama ad-
ministration’s assertion of the
right to freely navigate the
seas and has stepped up pa-
trols by U.S. warships through
the areas China claims. During
his Asia trip, Mr. Trump re-
leased joint statements with
Philippine and Vietnamese
leaders opposing militariza-
tion in the waters.
The South China Sea dis-
putes pit several Asean mem-
bers against each other and
against China, which is for
many their chief trading part-
ner. China claims almost 90%
of the waters, overlapping mid-2016 that there was no
with claims of the Philippines, basis for China’s sweeping
Vietnam, Malaysia, Taiwan claims.
and Brunei. Mr. Duterte decided not to
“The Philippines opted for a seek enforcement of the tribu-
friendlier relationship with nal’s finding. In return, he
China” and that has benefited earned pledges of billions of
the entire region, Philippine dollars in economic and busi-
presidential spokesman Harry ness deals in Beijing.
Roque said on Monday. Mr. Duterte is “doing what
China has changed the China wants all the claimant
countries to do: sit down and
talk bilaterally,” said Ian Sto-
rey of the Singapore-based
Philippine president’s ISEAS-Yusof Ishak Institute.
softer take on South Mr. Keqiang, the Chinese
premier, said on Monday that
China Sea alters the Beijing was committed to
balance at gathering. peace and stability in the re-
gion and to starting consulta-
tions on a code of conduct,
something Asean and China
game in the South China Sea agreed to create more than a
in recent years by building decade ago but has never be-
and militarizing islands in the come reality.
strategic waters. Work between Asean and
Mr. Duterte’s predecessor, China toward a code of con-
Benigno Aquino III, stirred duct in the South China Sea is
China’s wrath by taking Ma- expected to begin in earnest
nila’s claim in the sea to a next year, but its utility is in
United Nations-linked tribunal, doubt because countries ha-
which concluded just after Mr. ven’t agreed to make any of its
Duterte came to office in provisions binding.

Asian Countries Look Past China, U.S. UCLA Players Arrive

Few predicted this out-
come. When Mr. Trump pulled
out of the TPP on his third
full day in the Oval Office,
commentators widely declared
the most ambitious trade deal
in history dead. Many pre-
dicted that China, excluded
from the laborious, decade-
CHINA’S WORLD long TPP negotiations, would
By Andrew Browne step in and fill the void with
Agreement for Trans-Pacific
Partnership—intend to have
their say in the matter.
The region has alternatives,
even if Mr. Trump’s America
drifts off on its own and Mr.
Xi decides to launch a new
power play. Much of its future
will be shaped by coalitions of
countries with shared values.
the U.S. ability under Mr.
Trump to muster a response.
Mr. Abe proposed a simi-
lar concept—he called it a
four-nation “diamond”—just
before he took power in a
landslide in 2012.
Skeptics say of the power-
shift scenario in which an
exhausted and muddled
America hands over Asian
Home From Shanghai
BY JAMES T. AREDDY Ending his trip to Asia on
Tuesday, Mr. Trump told report-
SHANGHAI—Three UCLA ers aboard Air Force One that in
basketball players who had recent days he asked the Chi-
been under police investigation nese president for help. Mr.
for a week in China flew home, Trump called the incident un-
hours after President Donald fortunate but said he had had “a
Trump said he had requested great conversation” about the
assistance on their behalf from players with China’s leader and

T
its own regional trade pact. he other big story in leadership to a focused and his counterpart Xi Jinping. hoped they would be leaving
Yet the TPP lives. Last-min- Asia over the past dynamic China that it is off UCLA freshmen LiAngelo soon. “President Xi has been
HANOI—It’s a neat narra- ute resistance from Canada week was also substan- by a wide margin. Ball, Jalen Hill and Cody Riley terrific on that subject,” he said.
tive: America’s inevitable de- upset plans to close the deal tially written in Shinzo Abe’s First of all, the U.S. de- departed from Shanghai’s Pu- The shoplifting investiga-
cline means the inexorable last week, but its proponents Japan—the revival of a dem- cline is much exaggerated. dong International Airport late tion drew outsize attention be-
rise of China. hope for a completion early ocratic “quad” also including In addition, smaller coun- Tuesday on a Delta flight bound cause the players are high pro-
As Xi Jinping consolidates next year. Its survival chal- India, Australia and the U.S. tries have agency, too, a fact for Los Angeles. Their exit came file, especially Mr. Ball, who
his power at home and pro- lenges the simplistic notion It conducted its first meeting that China appears to have after a week of tension, with the comes from a prominent sports
motes his $1 trillion-plus that Pax Americana in Asia on Saturday in Manila. belatedly recognized. players detained by police in family with a brother in the
“Belt and Road” infrastruc- will give way to Pax Sinica. Although this looked like The one certainty is that the eastern city of Hangzhou as National Basketball Association
ture program abroad, a What the past week has a made-in-America initia- regional power is shifting. In suspects in an investigation of and a media-hungry father, and
“post-American” age domi- amply demonstrated is that tive—Rex Tillerson, the U.S. relative terms, China is gain- suspected shoplifting from a news of their troubles broke
nated by the Japan and other regional secretary of state, floated ing at America’s expense. Louis Vuitton boutique. hours before Mr. Xi welcomed
Middle King- players—Australia and New the idea of a “free and open Predicting how this will end, In Los Angeles, the players Mr. Trump on his first presi-
dom is indeed Zealand also strongly back Indo-Pacific” in a speech last however, is a fool’s errand: walked out of the Tom Bradley dential visit to China.
becoming eas- the free-trade arrangement, month—it springs from a re- The constellations that will International airport terminal In China, UCLA was the
ier to imagine. now rebranded the Compre- gional angst about China’s help determine the future shortly after 6 p.m. local time guest of Alibaba Group Hold-
But wait. hensive and Progressive growing assertiveness and are only just emerging. escorted by a semicircle of air- ing Ltd. as part of a massive
Asian coun- port police. marketing campaign, which in-
tries have other ideas. When Carrying blue UCLA back- cluded a U.S. college-basket-
Mr. Xi and Donald Trump packs, the players alternated ball game on Saturday that
APEC 2017 NATIONAL COMMITTEE/AGENCE FRANCE-PRESSE/GETTY IMAGES

joined an annual gathering of hanging their heads and staring was to be the three freshmen’s
Asia-Pacific leaders in Vietnam up into flashing camera lights debut for UCLA.
last week, the most significant from a crowd of reporters, as After being taken to a police
drama didn’t star either Chi- they struggled past the crowd station last Tuesday after a re-
nese or American actors. to get into a black van. They ported theft of sunglasses at
didn’t answer questions shouted the Louis Vuitton boutique in

G
alvanized by Japan, out by reporters, including on Hangzhou the previous day, the
the 11 remaining mem- the terms of their departure trio was returned to the team’s
bers of the Trans-Pa- from China, keeping complete hotel hours later. Along with a
cific Partnership pushed silence from inside the terminal few UCLA staff members, they
closer to a trade pact that of- all the way into the van. spent the rest of the week nes-
fers a liberal alternative to Anticipating a crowd at their tled in a set of corner rooms on
the Chinese economic model arrival, airport security re- a VIP floor of the Hyatt Re-
of protected markets and routed the players from the gency Hangzhou. They checked
policies favoring state “cham- usual exits at the arrivals termi- out on Monday, a person with
pions” while also advancing nal to another one at depar- knowledge of the situation said.
the vision of multilateralism tures, and stationed two airport The players will answer
as the Trump administration police cars and a police van on questions on Wednesday at
pushes for one-on-one deals. Vietnam’s Tran Dai Quang, left, and Japan’s Shinzo Abe at the APEC summit in Vietnam on Nov. 10. the street for crowd patrol. UCLA, the university said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * * * Wednesday, November 15, 2017 | A9

WORLD NEWS

Australians
Endorse
Zimbabwe’s Military Moves on the Capital
Zimbabwe’s military seized would intervene if the purge

Same-Sex control of state television and

launched operations to subdue
what it called the country’s
didn’t come to an end.
The ruling ZANU-PF party
in a statement Tuesday eve-
Marriage “degenerating” political estab- ning denounced Gen. Chi-
wenga’s comments as “trea-
BY ROB TAYLOR By Gabriele sonable conduct” and said it

JEKESAI NJIKIZANA/AGENCE FRANCE-PRESSE/GETTY IMAGES

CANBERRA, Australia—Aus-
tralians endorsed same-sex
marriage in a nonbinding na-
tional vote, delivering a win for
the country’s conservative
leader that may yet come at the
cost of a rebellion by right-wing
lawmakers in his coalition.
After a divisive two-month
campaign that included a
court challenge meant to pre-
vent the ballot, officials on
Wednesday announced a 62%
to 38% result in favor of such
unions, paving the way for a
vote in Parliament within
days. Conducted by mail, the
ballot drew a response rate of
nearly 80%.
For Prime Minister Malcolm
Turnbull, who called for the
vote to test public opinion
ahead of a parliamentary mea-
sure on same-sex marriage he
has promised this year, the
outcome provides short-term
relief from a series of political
challenges. He supports chang-
ing the marriage laws, but
conservative rebels have
promised to try to amend or
block a bill in Parliament.
Steinhauser in
Johannesburg and
Bernard Mpofu in
Harare, Zimbabwe
lishment, even as it denied it
was ousting longtime leader
President Robert Mugabe.
Gunshots were heard early
Wednesday near the presi-
dent’s residence and at least
one explosion sounded in the
capital, Harare.
Armored vehicles drove
into Harare late Tuesday,
hours after the ruling party
accused the head of the mili-
tary of treason. The moves
came just days after Mr.
Mugabe, the country’s long-
time ruler, fired his powerful
vice president.
Before the military’s ac-
tions, Mr. Mugabe, who is 93
years old, appeared poised to
install his 52-year-old wife,
Grace, as one of his two depu-
ties and hoist her into a prime
position to succeed him.
In the early hours of
Wednesday, Maj. Gen. Sibusiso
Moyo, one of the highest-rank-
ing officers in Zimbabwe’s mil-
Gen. Constantino Chiwenga, right, said Monday that the military wouldn’t hesitate to step in.
itary, read a statement on
state television denying ru-
mors of a coup.
“We wish to make it abun-
dantly clear that this is not a
military takeover of govern-
ment,” Maj. Gen. Moyo said.
“What the Zimbabwe Defence
Forces is doing is to pacify a
degenerating political, social
and economic situation in our
country.”
He said Mr. Mugabe and his
family were safe.
“Their security is guaranteed.
We are only targeting criminals
around him who are committing
crimes that are causing social
and economic suffering in the
country in order to bring them
to justice,” he said.
“Any provocation will be met
with an appropriate response,”
Maj. Gen. Moyo warned.
He ordered all military mem-
bers who are on leave to return
to their barracks. Armored per-
sonnel carriers were parked at
strategic intersections in the
business district and opposite
Mr. Mugabe’s offices.
The statement was read not
was reaffirming “the primacy
of politics over the gun.”
But early Wednesday, the
state radio station started
broadcasting Gen. Chiwenga’s
Monday statement in a loop,
without any commentary,
while the government broad-
caster played music videos
throughout the night.
At stake is the long-antici-
pated presidential succession
in a country once vaunted as
the bread basket of Africa that
in recent decades has been
pounded by a series of eco-
nomic crises. The standoff
long after what sounded like comes as the nation was try-
gunshots were heard near Mr. ing to re-engage with global
Mugabe’s residence in Harare, financial institutions such as
according to a nearby resident. the World Bank and the Inter-
The U.S. Embassy in Harare national Monetary Fund to
urged Americans in the coun- overcome its latest bout of hy-
try to “shelter in place” and perinflation.
ordered embassy staff to work Last week’s surprise re-
remotely for the day, citing moval of Vice President Em-
“ongoing political uncertainty.” merson Mnangagwa, nick-
The prospect of a possible named the Crocodile, shocked
Mugabe dynasty had prompted many Zimbabweans who are
a threat from the head of Zim- unhappy with what they see as
babwe’s armed forces, Gen. erratic behavior and a blatant
Constantino Chiwenga, on display of wealth by Mrs.
Monday that the military Mugabe and her children.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A10 | Wednesday, November 15, 2017
Prime Minister Theresa May leaving 10 Downing Street on Tuesday.
SHIFT
Continued from Page One
has risen, a sign companies are
spending to increase productiv-
ity. In the first quarter, invest-
ment in plants climbed a sea-
sonally adjusted annual rate of
14.8%, the highest since early
2014. Investment in equipment
climbed 8.8% in the second
quarter, the highest in almost
two years.
A confluence of factors is
helping manufacturing, accord-
ing to Stanley Black & Decker
Inc. Chief Executive James
Loree, who cited a shrinking
wage differential between U.S.
and foreign workers and rapid
technological advances. In his
particular business, “end users
love locally made products,” Mr.
Loree added in an interview on
Tuesday.
“Global macroeconomic con-
ditions are solid,” Rockwell Au-
tomation Inc. Chief Executive
Blake Moret told analysts, cit-
ing “strong orders” and opti-
mistic forecasts for global eco-
An enhanced reading experience.
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WORLD NEWS
U.K. Lawmakers Open Brexit Parley
BY JENNY GROSS
LONDON—British lawmak-
ers on Tuesday began scruti-
nizing legislation that would
start the process of splitting
the U.K. from the European
Union, the first of a series of
parliamentary tests that will
measure Prime Minister The-
resa May’s authority over her
country’s exit from the bloc.
In a sign of the challenges
Mrs. May faces, lawmakers
were locked in debate over the
relatively minor detail of ex-
CHRIS J. RATCLIFFE/BLOOMBERG NEWS
actly what date and time the
U.K. should leave.
The hourslong debate was
the first of eight sessions for
lawmakers to examine the EU
Withdrawal Bill, which would
enshrine EU law into the U.K.
statute book to ease the tran-
sition out of the EU.
The timing amendment,
which will be voted on at a
FROM PAGE ONE
nomic growth and industrial
production.
Milwaukee-based Rockwell,
which sells factory hardware
Winners and Losers
Changes in manufacturing jobs from October 2016 to September 2017
and software to myriad manu- Sectors with biggest job gains
facturers around the world, said Machinery
last week it expects organic Fruit/vegetable preservation
sales growth as high as 6.5% in Lighting
its 2018 fiscal year, with an ad- Hand tools
ditional 2.5% boost to its results Fabricated metal
coming from a weaker dollar. Confectionary
Global energy and commod- Iron, steel mills
ity prices have rebounded amid Purchased steel products
growth in many economies Mineral products
around the world. That has Machine shops
boosted sales for Illinois-based
Sectors with biggest job losses
manufacturing giant Caterpillar
Inc. and other makers of heavy –9.9%
machinery used to extract natu- –7.2
ral resources. –5.9
In the process, Caterpillar –3.5
has increased its domestic –3.4
workforce by 3,200 from the –2.7
end of March to 49,700 at the –1.9
end of September. –1.6
“The overall environment is –1.5
more business-friendly and we –1.4
think that has created some Source: Bureau of Labor Statistics
business confidence,” Caterpil-
lar finance chief Brad Halverson businessman as president last
said in an interview. November and Mr. Trump’s
Part of the optimism promise of reduced taxes and
stemmed from the election of a fewer regulations.
The New WSJ iPhone App
Personalized News Feed
Discover articles through a
news feed built for you.
later date, is just one of hun-
dreds to be debated over the
coming weeks.
Late Tuesday, lawmakers
voted against attempts by op-
position parties to amend sev-
eral other aspects of the legis-
lation, including a proposal
that would have required the
government to get consent
from the devolved administra-
tions in Northern Ireland,
Scotland and Wales before re-
pealing the legislation that
brought the U.K. into the EU.
How Mrs. May fares
through this process will sig-
nal her ability to recover from
a period of political turmoil in
London, after a summer elec-
tion gamble in which she lost
her parliamentary majority
and after she weathered two
high-profile resignations by
cabinet ministers.
A number of lawmakers said
that setting in law that the
8.8%
7.6
7.1
6.7
5.9
5.8
5.6
4.8
4.6
4.0
Cut and sew apparel
Other apparel
Misc. computer, electronic
HVAC, refrigeration
Fabric mills
Motor vehicles
Cleaning compounds
Textile and fabric finishing
Sawmills
Paints, adhesives
THE WALL STREET JOURNAL.
The gains have happened
even though important parts of
Mr. Trump’s manufacturing
agenda haven’t come to frui-
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* * THE WALL STREET JOURNAL.
U.K. will leave the EU at 11 p.m.
on March 29, 2019, could tie
the government’s hands if ne-
gotiations go down to the wire.
Dominic Grieve, a senior
Conservative lawmaker,
pledged to vote against the gov-
ernment on the issue, calling
The prime minister is
presiding over a
Parliament divided on
her vision for Brexit.
the amendment “mad.” “What
it does is to fetter the govern-
ment’s own ability to carry out
this negotiation,” he said.
The government said it wants
the exit day enshrined into law
to remove any doubt about
when the U.K. is leaving the EU.
tion, observers and business
leaders say.
Early in his term, Mr. Trump
promised to punish American
companies that shift production
abroad, but such penalties ha-
ven’t materialized.
A big item, the overhaul of
U.S. taxes, is being debated in
Congress. But a $1 trillion infra-
structure plan hasn’t panned
out. Nor has repeal of the
Obama-era health-care law.
“We believe the lack of prog-
ress over key elements of fed-
eral policies—specifically health
care, tax reform, and infrastruc-
ture funding—continues to ex-
ert downward pressure on both
public and private construction
activity,” C. Howard Nye, chief
executive of North Carolina-
based Martin Marietta Materi-
als Inc. said in an analyst call
on earlier this month.
Gary Cohn, the president’s
top economic adviser, said
Tuesday that a plan to overhaul
the nation’s infrastructure is
“the next thing on our agenda.”
Amid general improvement
for manufacturing, some indus-
tries and companies have
The EU Withdrawal Bill,
which would transpose more
than 10,000 EU laws into U.K.
law once Britain leaves the EU,
has also come under broader
criticism from some lawmak-
ers who say it gives the prime
minister too much power to
alter laws without parliamen-
tary approval.
As part of leaving the EU,
the government will have to
decide whether to keep,
amend or repeal a host of EU
laws that the U.K. will no lon-
ger be obligated to apply.
Significant amendments to
come in later debates include at-
tempts to give Parliament
greater say over the final Brexit
deal and to ensure that the Eu-
ropean Court of Justice will con-
tinue to have jurisdiction during
the two-year transitional period
after the U.K.’s planned exit.
—Jason Douglas
contributed to this article.
posted gains while others have
continued to struggle.
The performance of Amer-
ica’s largest manufacturing
companies also has been mixed.
Of the 10 largest industrial
companies in the S&P 500, only
Caterpillar, Honeywell Inc. and
3M Co. recorded higher third-
quarter profit and earnings per
share compared with a year
earlier, according to data from
Thomson Reuters I/B/E/S.
Profit and earnings per share
declined at General Electric Co.,
Boeing Co., United Technologies
Corp., Lockheed Martin Corp.
and General Dynamics Corp.
Two companies—United Parcel
Service Inc. and Union Pacific
Corp.—posted a rise in per-
share earnings while their over-
all profit slipped.
To be sure, manufacturing
growth could slow if the econ-
omy tips into recession or if
there are disruptions in trade
or other geopolitical problems.
Also, a weaker dollar—which
has boosted exports by making
American goods cheaper
abroad—could reverse direc-
tion.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Wednesday, November 15, 2017 | A11

WORLD NEWS

U.S. Uses Radio to Fight Muslim Militants

Broadcasts set for
Outsourcing Terror
Central Asia aim to Foreigners who have fought in either Syria or Iraq
curb Islamic State for Islamic State, by region
recruitment in region
Former Soviet Republics
The U.S. government is Middle East
testing new strategies to coun- Western Europe
ter Islamic State propaganda The Maghreb
in Central Asia, a fertile re- South, Southeast Asia
Balkans
By Jessica Donati in
Washington and North America
Nathan Hodge in 0 2,500 5,000 7,500 10,000
Tashkent, Uzbekistan *Includes Morocco, Algeria, Tunisia, Libya and Mauritania
TIMUR KARPOV/ASSOCIATED PRESS

Source: Devenir Group LLC THE WALL STREET JOURNAL.

cruiting ground for militant
groups and birthplace of the said Noah Tucker, an associate The USAID pilot program
suspect who attacked New at George Washington Univer- selects migrant workers from
York last month. sity’s Central Asia Program the former Soviet republics
A new campaign by the and an editor at RFE/RL who according to “vulnerability
U.S.-funded media outlet Ra- was involved in the research. factors” and tries to prevent
dio Free Europe/Radio Liberty To be sure, researchers ac- them from becoming isolated
that is intended to dent Is- knowledge the difficulty in or desperate by providing
lamic State recruitment in The building in Tashkent, Uzbekistan, where the suspect in last month’s New York terror attack lived. proving that attacks are pre- them with job prospects and
Central Asia is set to kick off vented by such programs. But access to loans and education
in January. It will include local Oct. 31 attack in New York that But in recent years, mi- mer Soviet republics are more they say it is possible to show to help keep them employed.
language broadcasts featuring killed eight people. The sus- grants from former Soviet re- susceptible to extremist pro- an at-risk individual’s increased It is part of the Dignity and
repentant foreign fighters, pect, Sayfullo Saipov, is an im- publics have been a focal point paganda while working in Rus- community engagement, a sign Rights program, run by the In-
widows, and parents who have migrant from Tashkent, Uz- of Islamic State recruitment in sia, where they often face dis- of preventing radicalization. ternational Organization for Mi-
lost children in Syria and Iraq. bekistan, a country that has Syria and Iraq, with more than crimination, police harassment The RFE/RL campaign aims gration, which aims to support
That joins an expanding been a major source of Islamic 8,700 joining the group, ac- and social isolation while trav- to prevent migrant workers the most vulnerable of the mil-
U.S. Agency for International State recruits. cording to an October report eling there to search for work. from developing extremist ideas lions of Central Asian migrants
Development pilot program Far from the center of the by the Soufan Group, a secu- “It’s not the poorest of the while abroad. The group’s new who travel to Turkey, Russia
that aims to give struggling Arab world, former states of rity-consulting firm headed by poor who go, but people who broadcast project, dubbed “Not and Kazakhstan to find work.
migrant workers alternatives the defunct Soviet Union a former Federal Bureau of In- are often relatively well off in Our Name,” will feature vid- The original project started
to joining militant groups. didn’t used to be big contribu- vestigation official. compared to others around eos of discussion programs with a focus on about 20 peo-
Such efforts have taken on tors to jihadist movements in New research indicates that them but from an area or with youths about the conse- ple in 2015 and has expanded
fresh urgency following the the Middle East. migrant workers from the for- group that is marginalized,” quences of joining Islamic State. to several hundred this year.

WORLD WATCH
MIDDLE EAST EARTHQUAKE
In Iran, Death Toll
Rises to at Least 530
ATTA KENARE/AGENCE FRANCE-PRESSE/GETTY IMAGES
peared to be in the Kurdish tutions that aren’t regulated by ing lenders to a housing market
town of Sarpol Zahab in the the federal government, the that many say is experiencing
western Iranian province of Ker- chief executive of the country’s bubble-like conditions, particu-
manshah. state-owned mortgage insurer larly in Vancouver and Toronto.

Iran’s state-run news agency
said the country’s death toll
from the powerful earthquake
that struck the Iran-Iraq border
has risen to 530.
The news service, IRNA, also
reported Tuesday the number of
injured in the 7.3-magnitude
temblor now stood at 7,460.
The earthquake, which also
caused deaths and damage in
Iraq, struck Sunday night local
A girl looks in a mirror salvaged from a building damaged in time, just as people were going
Sarpol Zahab, Iran, which was hit hard by Sunday’s earthquake. to bed. The worst damage ap-
Kermanshah, an almost en-
tirely Kurdish province nestled in
the Zagros Mountains that run
along the border with Iraq, suf-
fered all Iran’s fatalities from the
quake.
—Associated Press
CANADA
Lending Risks Rise in
Hot Housing Market
Mortgage risk is increasing
among Canadian financial insti-
warned in a speech on Tuesday.
Canadian consumers are load-
ing up on mortgage debt relative
to their incomes and borrowing
for longer terms as house prices
surge, said Evan Siddall, chief ex-
ecutive of the Canada Mortgage
and Housing Corp.
Loan-to-income ratios climbed
to 296% in 2016 from 271% in
2014, while the number of mort-
gages that amortize in more
than 25 years rose to 63% from
52%, according to CMHC data.
That riskier activity is expos-
Mr. Siddall said there were
“growing risks” in Canada’s hous-
ing market, and added that fed-
eral regulators have tried to curb
risk by demanding that banks
raise their mortgage-lending
standards—but those rules apply
only to federally regulated insti-
tutions. Those include Canada’s
six largest banks, while credit
unions, which are regulated by
Canada’s provinces, aren’t sub-
ject to the new, tougher stan-
dards.
—Vipal Monga

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Wednesday, November 15, 2017
TOWN
Continued from Page One
Kara Clore, executive director
of the Rockdale Municipal De-
velopment District. “They’re
not going to have to cram into
some little downtown area.”
When Seattle-based Amazon
said in September it wanted to
establish a second North Amer-
ica headquarters—dubbed Ama-
zon HQ2—it set forth a list of
preferences: an international
airport within 45 minutes, a
metro area of more than a mil-
lion, public-transportation op-
tions, universities with soft-
ware-developer graduates, a
strong cultural fit.
The company plans to be-
stow the winning city with a $5
billion investment that may
create 50,000 jobs. Among 238
cities, territories and regions
that Amazon says applied by
the Oct. 19 deadline are plenty
that appear to fit the bill.
Rockdale is among those
that don’t quite—but are trying
anyway. Anchorage, Alaska,
feels it, too, has something big
to offer. “We’re probably the
largest place that applied if you
look at the footprint of Alaska,”
CLASS
Continued from Page One
They are among the two mil-
lion or more Venezuelans who
have left the country since 1999,
the year Mr. Chávez gained
power, according to Tomás
Páez, a Venezuelan immigration
expert. That exodus is roughly
twice the number who fled
Cuba in the two decades after
the revolution there, and is set
to worsen. President Nicolás
Maduro, Mr. Chávez ’s succes-
sor, is stripping away the coun-
try’s last vestiges of democracy,
and the economy is in a full-
blown collapse that already ri-
vals the U.S. Great Depression.
On Monday, Venezuela was
ruled in default on a missed in-
terest payment by S&P Global
Ratings, pushing the country
closer to a reckoning of its $150
billion debt load.
Trying to Get Out
Cumulative U.S. asylum
applications from the top five
countries for the past year*
30,000 applications
Venezuela
25,000
27,601
20,000 China
17,499
15,000 Guatemala
12,858
10,000
Mexico
5,000 12,785
El Salvador
0 12,447
2016 ’17
*For the 12 months ending Aug. 31, 2017
Source: U.S. Citizenship and Immigration
Services
THE WALL STREET JOURNAL.
Many of those who have left
are people like the Ceapucv
class of 1994—the future bank-
ers, lawyers, economists and
doctors whose absence is likely
to hamper Venezuela’s economic
growth for decades to come.
“It’s a big loss,” said Libia Ál-
varez, the class’s science
teacher, who has kept in touch
with many of the students. “All
of our great professionals are
leaving, seeking a better quality
of life abroad.”
Vanessa Briceño has made a
life in Philadelphia, and Edgard
Rodriguez in Madrid. Manuela
Silva is an architect in Austra-
lia, while Julie Bolivar is a doc-
tor in France. This past June,
Carolina Gómez, also a doctor,
left with her family for McAllen,
Texas, a move they decided to
make after the government vio-
lently put down a protest move-
ment in 2014.
“I marched, I cried, I fought.
I did everything for my country
that I could do,” said Dr. Gómez,
who is preparing to practice
medicine in the U.S. “But we’re
very far from defeating this
wickedness.”
Those left behind are in-
creasingly frantic to leave. Ri-
cardo Arzola, a sales manager
at food conglomerate Empresas
Polar SA, has a good job at Ven-
ezuela’s most admired com-
pany. Salary increases and com-
pany perks such as free food
have allowed him to weather
the economic collapse.
But he sees a grim future for
his children, ages 7 and 11. He
worries about their education
after history books were rewrit-
ten to champion Mr. Chávez and
his Socialist movement while
comparing the U.S. to the Third
A path near Scarborough, Maine, which submitted a bid to Amazon.
says Meghan Stapleton, one of
two Anchorage small-business
owners who hand-delivered a
proposal to Amazon headquar-
ters the day it was due.
Even Alaska’s entire popula-
tion of around 740,000 doesn’t
make Amazon’s cut, but the
proposers hope the natural
beauty and lifestyle are selling
points. They say Anchorage has
a business-friendly climate and
boasts flight times of 9.5 hours
or less to 95% of the industrial-
ized world. “We just felt so
strongly that Alaska should
have a seat at the table,” says
Ms. Stapleton. “That table
might not ultimately include
HQ2. But at least people are be-
ing reminded that we are here.”
Amazon, which said it wants
Reich.
Mr. Arzola wasn’t ready to
leave until now. He thought
there was a chance to change
his country when he joined an-
tigovernment protests earlier
this year in a failed bid to stop
Mr. Maduro from creating a su-
per-assembly stacked with gov-
ernment supporters—a kind of
tropical Politburo with un-
checked power that many here
view as the death of democracy.
Crackdown
A government crackdown
left 120 people dead and the op-
position in disarray. For Mr. Ar-
zola, that settled his decision to
move to Argentina, where he
and a few friends started a
small business selling cleaning
supplies.
“Clearly there is no democ-
racy,” he said. “Even though I’m
at a really good company, now I
have to think about the future
of my sons.”
Officially called the UCV Pro-
fessors Association School, Cea-
pucv was created for the chil-
dren of academics from the
Central University of Venezuela.
Here, the sons and daughters of
engineering professors, histori-
ans and poets studied from kin-
dergarten through high school
and were guaranteed accep-
tance into the university.
As middle-class children,
they went camping, played soc-
cer and danced to Michael Jack-
son’s “Thriller.” As teenagers,
they smoked and drank at rau-
cous parties, created heavy
metal and ska bands, and
walked home at night when it
was still safe to do so. Some
shared a first kiss.
To celebrate their gradua-
tion, they took a trip to Marga-
rita Island. Today, they remem-
ber those days as some of the
best of their lives.
Born in the late 1970s, they
were children when Venezuela’s
golden age of prosperity started
to unravel. A global oil glut led
to a sharp currency devaluation
in 1983, known as Black Friday.
Six years later, hundreds of peo-
ple were killed in Caracas when
riots broke out after then-Presi-
dent Carlos Andrés Pérez cut
gasoline subsidies, an uprising
called the “Caracazo” that Mr.
Chávez exploited to stage a
failed coup in 1992, when most
of the classmates were in their
third year of high school.
Many students came from
liberal families concerned with
inequality and disgusted with
the political elite. But like their
parents—some of whom were
former urban guerrillas who
played Cuban folk music at
home—they differed on
whether to support Mr. Chávez.
After his release from prison
in 1994, Mr. Chávez presented
himself on television as a char-
ismatic, center-left democrat.
He traded his red beret and fa-
tigues for a suit and tie. He
pledged to respect press free-
dom and called Cuba a dictator-
ship. “I’m not the devil,” a smil-
ing Mr. Chávez said.
Solsire Ortega’s family
wasn’t buying it, fearing Mr.
Chávez was another Latin
American strongman. Soon af-
ter his election in 1998, Ms. Or-
tega’s mother sent her younger
brother to Florida and arranged
for her to move to Mexico and
then Spain, ending dreams of
running an architecture firm
here.
Today, Solsire Ortega’s
daughter refuses to recognize
her Venezuelan nationality, pre-
ferring to think of herself as
IN DEPTH
HQ2 for more room to grow,
won’t comment on specific pro-
posals. Holly Sullivan, who is
leading its effort, says it appre-
ciates the creativity of many of
the ideas: “Cities across North
America have shown their abil-
ity to think big.”
Thinking big for a group of
five towns in Massachusetts’
Lower Merrimack Valley meant
sending Amazon a large fake di-
amond ring with the invitation:
“let’s get merri’d.”
“We know we’re not Bos-
ton,” says Town Manager An-
drew Maylor of one of the
towns, North Andover. “We
wanted people to be interested
enough to read the package be-
cause we believe that we have
everything.”
Scarborough, Maine, says it
Then and now: members of Ceapucv’s class of 1994 on a graduation trip, above, and below from left to right this year, economist
Norka Ayala; Héctor Navarro, a computer science professor; and Juan David Chacón, a reggae artist targeted by criminals.
Spanish and Mexican. “She’s
heard so many terrible things
about what is happening in
Venezuela,” said Ms. Ortega,
who works in tourism in Seville.
“We never imagined this.”
The chaperone
Héctor Navarro’s family was
committed to the revolution.
His dad, also called Héctor, is
remembered by classmates as
the friendly chaperone who ac-
companied them to Margarita
Island. Five years later, he left
his job as an engineering pro-
fessor to become Mr. Chávez’s
first education minister.
The family remained loyal to
Mr. Chávez during his 14-year
rule. Héctor Jr. joined govern-
ment marches and supported
Mr. Chávez’s social welfare
projects in Caracas’s slums.
When Mr. Chávez died in 2013,
it was like losing a family mem-
ber, said the younger Mr. Na-
varro, now a computer science
professor at the UCV.
Both men quickly became
disillusioned with Mr. Maduro,
accusing him of being an auto-
crat destroying his predeces-
sor’s legacy. The super-assem-
bly Mr. Maduro created this
summer is in the “worst style of
An Economy in Crisis
Venezuela’s GDP has been
shrinking since President Nicolás
Maduro took office…
Change in GDP
6%
0 cement producer Holcim Ltd.’s
–6
–12
–18
2011 ’13 ’15
Sources: International Monetary Fund (GDP, inflation); DolarToday (currency)
is unclear which of Amazon’s
requests are mandatory and
which are mere preferences.
The coastal resort town of
about 19,000 is proposing a
harness-race track location.
“Yes, there are some huge hur-
dles, and maybe some of them
are insurmountable,” says Town
Manager Thomas Hall. “Some-
ALAMY
thing of this magnitude, you’ll
build it and they’ll come.”
The Tulalip Tribes of Wash-
ington state applied, hoping to
play to Amazon’s desire for an
environmentally friendly foot-
print. Roughly 2,500 members
reside on the 22,000-acre reser-
vation, about a 45-minute drive
north of Amazon’s Seattle
headquarters. The tribes are of-
fering a location in what they
say is the first tribally char-
tered city in the U.S., something
they say could help prevent
“cubicle fatigue” by locating it
among the pines, arbutus, firs
and cedars—with autonomous
vehicles for transportation.
Also, says Michael Greene, a
spokesman for the tribes, “one
of the big things—the advan-
tage of being a sovereign gov-
ernment—the turnaround for
building is much quicker.”
Some smaller metro areas
such as Hickory, N.C., are bank-
Mussolini and Hitler,” Héctor Sr.
said.
Like his schoolmates, the
younger Mr. Navarro thought
about emigrating. He spends
nights programming to supple-
ment his $30 a month salary as
a professor. On a recent trip to
Peru, he returned with deodor-
ant, shampoo and soap, basics
in short supply. At Ceapucv,
where his son now studies, the
school can’t afford food for the
cafeteria. When his son grows
up, he’d support him if he de-
cided to leave.
The regime’s rise upended
the friendship of Magaly Hen-
ríquez and Paula Sarco Lira,
who were close in school and
went on to study chemistry to-
gether at the UCV.
“We became two strangers,”
said Ms. Sarco Lira.
Ms. Henríquez followed her
father into public service, be-
lieving in Mr. Chávez’s message
to help the poor. She worked at
PdVSA’s technology institute,
which provided her a scholar-
ship to France. She returned
and became the president of the
National Center for Chemical
Technology, overseeing projects
to help Venezuela substitute
imports it can no longer afford,
including shampoo.
…while inflation has
skyrocketed…
Consumer-price index, change
from a year earlier
2,500% Est.
Est.
2,000
1,500
1,000
500
0 60,000
’17 2011 ’13 ’15 ’17
ing on being not that far from
bigger ones. Hickory, in
Catawba County near the foot-
hills of the Appalachian Moun-
tains, has a four-county metro
statistical area population of
about 350,000. So local officials
instead proposed a site closer
to its big-city neighbor, Char-
lotte, about 30 miles away.
The area, known for furni-
ture and fiber-optic-cable man-
ufacturing, is pitching a blank-
slate campus complete with a
lake. “If you don’t buy a lottery
ticket,” says Scott Millar, presi-
dent of the Catawba County
Economic Development Corp.,
“you’re definitely not going to
win.”
Rockdale in Texas composed
a combined proposal with Mi-
lam County, noting that the
population within an hour’s-
drive radius brings them to
about 2.5 million people. Rock-
dale hopes to meet the higher-
education criterion by dint of
being about an hour’s drive
from universities in Austin and
College Station.
It is playing up the ample ex-
tra room, pitching Amazon with
a proposed site of 33,000 acres,
almost two-thirds the size of
Seattle. “This is a rare opportu-
nity, the perfect blend of big
These days, Ms. Henríquez
remains committed to the em-
battled Mr. Maduro, calling him
a well-intentioned leader ham-
strung by the crash in oil prices.
“I still believe a lot in what
we are trying to do,” said Ms.
Henríquez. “I think the easiest
solution is to go, to leave your
country and to forget that you
have a responsibility here.”
Ms. Sarco Lira didn’t have
much of a choice. She also
wanted a career in oil, but after
university those plans were
stamped out when Mr. Chávez
fired almost 20,000 striking oil
workers, including her sister,
brother-in-law and future hus-
band. After she failed a security
clearance for a job at the oil gi-
ant on account of those family
ties, she found work in the
pharmaceutical industry.
But it became increasingly
difficult to make ends meet. Her
father stopped hosting Sunday
breakfast as food prices sky-
rocketed. She went a couple
months without being able to
buy rice, and was forced to re-
duce her young daughter’s fruit
servings. Then she got a job of-
fer in Madrid.
“It was never our plan to
leave Venezuela,” said Ms.
Sarco Lira, who emigrated in
…and the currency is worth less
every day.
Unofficial exchange rate
0 bolivar per dollar
10,000
20,000
30,000
40,000
50,000
Scale inverted to
show falling bolivar
2011 ’13 ’15
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
business and the magnificence
of nature,” says the narrator in
a video produced for the site.
“The opportunity to showcase
your global reach among the
lakes and rolling hills of Central
Texas.”
Leaders of Boise, Idaho, say
they know it doesn’t meet all
Amazon’s criteria. Backers sent
two one-page letters, anyway.
One from the governor sug-
gested Amazon “save us in its
cart for later,” says Clark
Krause, executive director of
the Boise Valley Economic Part-
nership. “We knew their toler-
ance level for looking through
our stuff would be short.”
The area doesn’t have a mil-
lion people or an international
airport. So leaders took the op-
portunity to tout the area’s
strong talent pool and food-in-
dustry supply-chain expertise.
“It would be crazy not to take
this opportunity to get Amazon
to look at us,” he says.
Mr. Krause says the leaders
offered to send Boise’s six-ton
Big Idaho Potato—a sculpture
that rides on a semi-truck
trailer—to Seattle if that would
help woo the retailer.
Amazon asked them to re-
submit the letters in PDF for-
mat. No word on the potato.
HECTOR NAVARRO (TOP); FABIOLA FERRERO FOR THE WALL STREET JOURNAL (3)
March. “But you can’t live with
that level of stress.”
The exodus of the class of
’94 has accelerated under Mr.
Maduro. Álvaro Yáñez, who
worked at a health services
company, found himself waking
up at 4 a.m. to join long lines
for food. He also took to social
media to search for medicine
for his diabetic father, a politi-
cal-science professor who spent
his career at the UCV. Fed up,
he finally left for Ecuador.
Kidnapped
Others have suffered first
hand from crime so rampant
that only 12% of Venezuelans
told Gallup they feel safe walk-
ing alone at night.
Economist Norka Ayala was
home with her baby when her
husband was kidnapped, driven
around Caracas by armed men
as the family frantically gath-
ered ransom. He was released,
but the couple has stopped go-
ing out at night and won’t take
their children to public parks.
She plans to move to Peru in
coming months.
Juan David Chacón began
singing about crime. A reggae
artist with long dreadlocks, he
toured Venezuela and abroad.
He had his own chilling experi-
ence: Armed men stole his vehi-
cle and forced him to sing Bob
Marley tunes while they used
his dreads to dust their guns. In
2010, he released Rotten Town,
a song that called Caracas the
“embassy of hell, land of mur-
derers.”
Rodrigo Belisario studied
chemistry and worked his way
up to plant manager at global
Venezuela operation before it
was nationalized by Mr. Chávez
in 2008. Mr. Belisario eventu-
ally settled in Virginia, where
he has watched his once be-
loved country fall apart.
“We’ve been in this mess
such a long time that to get out
of it will take two or three gen-
erations,” he said. “By that
’17
time, we will be dead and my
children will have a life here.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * NY Wednesday, November 15, 2017 | A12A

GREATER NEW YORK

Former N.J. Mayor Sent to Prison Lead Paint
Reporting
Paterson’s Torres gets
five years behind bars
for using city workers
By Housing
on a private project Authority
BY KATE KING

The former mayor of Pater-

Is Faulted
son, N.J., was sentenced to BY MARA GAY
five years in state prison on
Tuesday for second-degree New York City’s public hous-
conspiracy to commit official ing authority submitted docu-
misconduct. mentation showing it was in
Jose “Joey” Torres, 59 compliance with federal inspec-
years old, agreed to resign as tion requirements for lead paint
mayor of New Jersey’s third- even though the agency hadn’t
largest city when he pleaded conducted the required inspec-
guilty in September. Prosecu- tions in four years, according to
tors say he instructed city em- a report from the city’s Depart-
TARIQ ZEHAWI/THE RECORD/ASSOCIATED PRESS

ployees to perform work at a ment of Investigation.

property leased by his daugh- The DOI found that the New
ter and nephew. York City Housing Authority
Mr. Torres, a Democrat, “failed to do critical lead-
served as mayor of Paterson safety inspections and then
from 2002 to 2010 and was falsely certified that they were
elected again in 2014. He is meeting these legal require-
now barred from holding pub- ments,” DOI Commissioner
lic office or employment in the Mark G. Peters said in a state-
future in New Jersey. ment.
“I’m sorry and embar- The DOI recommended that
rassed,” Mr. Torres said at his a monitor be appointed to over-
sentencing before Superior Former Paterson Mayor Jose ‘Joey’ Torres was handcuffed after sentencing on Tuesday. ‘I’m sorry and embarrassed,’ he told the court. see the housing authority.
Court Judge Sheila Venable. The allegations in the DOI
Mr. Torres’s co-defendants, visor Joseph Mania, 51, of ing is what they were in- and electrical work, at a ware- his vast power as mayor of report appear to be based off
three former supervisors from Randolph, N.J., said his client structed to do by the mayor.” house where his daughter and New Jersey’s third-largest city a probe by federal investigators
the Paterson Department of is relieved the legal proceed- Attorneys for the other de- nephew were planning to op- to serve his own selfish ends, into health conditions in the
Public Works, pleaded guilty ings are over. fendants, Imad Mowaswes, 53, erate a wholesale liquor-distri- when he should have been city’s public housing and home-
to third-degree conspiracy “It was a sad day for all of Clifton, N.J., and Timothy bution business. The workers serving the residents of Pater- less shelters.
charges and were sentenced four defendants,” said Mr. Hanlon, 31, of Woodland Park, were paid overtime by the city son,” Attorney General Chris- Jean Weinberg, a spokes-
on Tuesday to three years of Flood. “With respect to the N.J., didn’t immediately return of Paterson while working at topher Porrino said in a state- woman for the housing author-
probation. They also resigned three workers from the public calls for comment. the private facility, prosecu- ment. ity, said the agency began ad-
and are barred from future works, they lost their jobs, According to prosecutors, tors said. Mr. Torres’s daugh- Mr. Torres and his co-de- dressing these issues more than
public employment. they’ll never work again for Mr. Torres asked city workers ter and nephew haven’t been fendants were ordered to pay a year ago in connection with
Raymond Flood, attorney government agencies in New to perform renovations, in- charged. $10,000 in restitution, includ- that investigation, which has
for former public works super- Jersey. And all they were do- cluding painting, carpentry “Joey Torres corruptly used ing for the overtime payments. been conducted by the U.S. At-

Jury Deadlocked A report found that the

housing agency failed
to conduct required
On Ex-Union Boss lead inspections.

BY THOMAS MACMILLAN Mr. Seabrook is accused of

accepting $60,000 in cash in an torney’s Office for the Southern
Jurors in the corruption $820 Salvatore Ferragamo bag District of New York.
STEVE REMICH FOR THE WALL STREET JOURNAL

trial of former city correction- in exchange for investing $20 “Since the Housing Author-
union leader Norman Seabrook million in union money into a ity learned it wasn’t in full com-
told a federal judge in Manhat- hedge fund operated by his co- pliance with lead-based paint
tan on Tuesday that they were defendant, Murray Huberfeld. regulations and reporting, it
deadlocked. Phil Seelig, a lawyer repre- has taken steps to address the
Judge Andrew Carter in- senting members of the Correc- underlying issues,” Ms. Wein-
structed the panel, which was tion Officers’ Benevolent Asso- berg said in a statement. “We
in its fourth day of delibera- ciation who are suing Mr. owe our residents better, and
tions, to return to the jury Seabrook and union leadership we’ll take today’s recommenda-
room and keep trying to reach over the hedge-fund invest- tions into careful consider-
a unanimous verdict. Jurors did ment, said the union was able ation.”
so but later went home for the to reclaim only $1 million of The report found that NY-
day without reaching a verdict. the $20 million put into Plati- Norman Seabrook, former correction-union leader, outside Manhattan federal courthouse last week. CHA Chair Shola Olatoye was
This is the second high-pro- num Partners. The remaining told the housing agency wasn’t
file federal-corruption case in $19 million is tied up in the Rechnitz. lice Department and Mayor Bill Defense lawyers for Messrs. in compliance in September
two days in which jurors have fund’s bankruptcy proceedings, Mr. Rechnitz testified that de Blasio’s office with gifts and Seabrook and Huberfeld sought 2016. A spokeswoman for New
said they can’t reach a unani- Mr. Seelig said. he acted as a matchmaker for campaign contributions. to convince jurors that Mr. York City Mayor Bill de Blasio,
mous verdict. On Monday, The two defendants, who the two defendants and deliv- The mayor called Mr. Rech- Rechnitz, who has himself who oversees the housing au-
Judge William Walls told the face up to 40 years in prison if ered a $60,000 bribe to Mr. nitz a liar and said his testi- pleaded guilty to fraud and thority, said “operations execu-
jury in a corruption case convicted, have pleaded not Seabrook. Mr. Rechnitz’s sev- mony was false. The NYPD de- conspiracy, was a manipulative tives” were responsible for the
against U.S. Sen. Bob Menendez guilty. Their lawyers have eral days on the stand were clined to comment. Two high- social climber and not to be be- lapses.
in Newark to continue deliber- sought to discredit the govern- closely watched in the city, as ranking police officers face lieved. “We believe that is where
ating Tuesday after it said it ment’s main witness, former he testified how he cultivated federal charges in a case con- Deliberations will continue the responsibility lies, and the
was deadlocked. real-estate developer Jona influence in the New York Po- nected to Mr. Rechnitz. on Wednesday. housing agency chair is working
closely with federal officials to
correct this,” said Melissa

Jails Budget Soars, as Inmate Population Drops

Grace, the spokeswoman.
The DOI report found that
the housing agency had failed
to conduct lead inspections re-
BY ZOLAN KANNO-YOUNGS “An extraordinary decline in spokesman said, including sur- the reforms that have made quired by the U.S. Department
inmates should yield cost-sav- veillance cameras, safety Rikers safer for staff and in- of Housing and Urban Develop-
The New York City Depart- ings and better all-around out- equipment and X-ray machines. mates,” she said of the New ment, the federal agency that
ment of Correction’s budget has comes—not dramatic spending But Mr. Stringer’s report York City jail complex. oversees the housing authority,
increased by 44% in the last de- increases,” Mr. Stringer said. showed the number of assault Richard Aborn, president of since 2013.
cade to $1.36 billion despite the “We’re putting far more infractions per 1,000 inmates the Citizens Crime Commission, Housing authority officials
inmate population declining to money into far fewer inmates.” increased from 470 in 2007 to a public-safety policy organiza- said they informed HUD offi-
its lowest point in more than City officials say that money 1,332 in 2017. The number tion, lauded the increased fund- cials they weren’t in compliance
30 years, according to a report is being well spent on skill-de- grew even though there were ing for skills-development pro- with federal rules during a rou-
issued Wednesday by city velopment programs for in- more uniformed correction of- grams, but said it should come tine oversight meeting in Sep-
Comptroller Scott Stringer. mates designed to help them ficials in jails than inmates for with a decrease in violence. “No tember 2016. But according to
The report showed the de- readjust to society after they a second consecutive year. matter what we do or what we the DOI report, Housing Au-
partment spent $143,130 on are released. A Department of Natalie Grybauskas, a spend, Rikers keeps getting thority officials then continued
each inmate at the 12 city jail Correction spokesman noted spokeswoman for the mayor, worse,” he said. “To me there is to submit paperwork showing
complexes in fiscal 2017 com- $93 million in funding Mayor said the rate of violence is a one solution, close it fast.” they were in compliance until
pared with $67,565 in fiscal Bill de Blasio has invested result of the city’s efforts to Mr. de Blasio has said his July 2017. Ms. Weinberg said
2007. During that time, the av- since fiscal 2016 for such pro- divert low-level offenders out administration’s plan is to the agency “took immediate
erage daily inmate population grams and job training. of jail. “We’re proud of our close the complex in at least a steps to develop a plan to ad-
declined from 13,987 to The money also is used to success in reducing the jail decade by building new jails dress the issues” after the over-
9,500—a 34-year-low. improve safety conditions, the population, and we’re proud of throughout the city. sight meeting.

OYSTER PERPETUAL

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A12B | Wednesday, November 15, 2017
Enrollment Drops at Many Private New York Colleges
BY LESLIE BRODY
Many New York private col-
leges and universities that en-
roll mostly in-state students
saw their numbers of under-
graduates drop this fall, in the
wake of Gov. Andrew Cuomo’s
scholarship push at public in-
stitutions.
The Commission on Indepen-
dent Colleges and Universities in
New York found that at 30 of
the 48 private schools that serve
mostly New Yorkers, overall en-
METRO MONEY | By Anne Kadet
Pest Pros Bugged
By Lack of Respect
I wasn’t
sure precisely
what to ex-
pect from the
2017 New
York Pest
Expo in Fort Lee, N.J. I just
knew it was going to be a
major, high-energy event, be-
cause that’s what Andy Lin-
ares, who produces the an-
nual affair, promised when I
called to ask if I could attend.
“It’s the most significant
one-day event in pest man-
agement,” said Mr. Linares,
citing the size of the crowd,
array of exhibitors and
lineup of speakers.
Mr. Linares, who is presi-
dent of Bug Off Pest Control
Center, an Upper Manhattan
training establishment and
supplier of pest-control prod-
ucts, promised to keep things
lively at last week’s event.
“I’ll wake people up if I see
them nodding off,” he said.
“I’ll stick my finger in their
ear. Know what I mean?”
When I arrived at the Dou-
bleTree hotel early Friday
morning, the ballroom already
was packed with the 500
guests who each paid $150 to
$200 to attend. I squeezed into
a table filled with pest-man-
agement professionals includ-
PROPERTY
Suit Filed Over Rents
At Kushner Building
Tenants of a second building
owned by the company of Jared
Kushner’s family filed a lawsuit
Tuesday concerning rent that
they say is illegally inflated.
The lawsuit in state Supreme
Court in Brooklyn filed by six resi-
dents at 18 Sidney Place in
Brooklyn alleges that Kushner
Cos. is charging much higher free-
market rent, rather than the rent-
stabilized rate required by law.
The Kushner Cos. said it has
rollment of first-time freshman
from New York dropped 8%
from last year, to 9,935. At these
schools, at least 65% of under-
graduates hail from in state.
The commission, which ad-
vocates for these private
schools, released the member
survey Tuesday. Spokeswoman
Emily Donohue said it wasn’t
clear how much the enrollment
declines could be attributed to
the state’s new Excelsior Schol-
arship for public institutions, in
addition to other demographic
ing brothers Frank and Reggie
Davis, who own Experienced
Exterminators in the Bronx.
They said they attend the
expo, which launched in 2003,
every year to get re-energized.
“The industry is underesti-
mated, underrated,” said
Frank Davis. “People don’t re-
alize a rodent can go on an
aircraft and feed off the
wires. People don’t realize
how deadly that is.”
Alas, the morning’s speak-
ers, who lectured on topics
such as “Filth Flies in the Com-
mercial Arena,” and “Ant Man-
agement—Choosing the Right
Formulation,” proved too tech-
nical for me. I slipped out to
visit the exhibitors. Products
included the latest battery-
powered insecticide sprayer, a
bed-bug-slaying steamer and a
wireless bait station that sends
rat alerts to your phone.
Anthony Warn, an account
executive with WorkWave,
based in Holmdel, N.J., was
demonstrating PestPac soft-
ware. A large screen dis-
played a dizzying array of fe-
ver charts and bar graphs
tracking everything from ap-
pointment cancellations and
revenue per customer to call-
back rate by technician. “It
looks more like something
done nothing wrong.
“We’ve reviewed the lawsuit
and believe it is without merit
and that we have complied with
all rent regulations applicable to
the apartments,” spokeswoman
Christine Taylor said.
The case follows a suit filed in
August by nine residents of an-
other Kushner building in Brooklyn.
Jared Kushner stepped down
as CEO of the Kushner Cos. ear-
lier this year before he became a
senior adviser to his father-in-
law, President Donald Trump. He
still owns both the buildings at
the center of the two lawsuits.
—Associated Press
NY
GREATER NEW YORK
trends, but her group worried
the program’s toll on indepen-
dent schools would grow.
“We don’t want this to be
us versus them,” she said.
“This is about making sure
students can come to college.”
In April, Mr. Cuomo signed a
state budget including the Ex-
celsior Scholarship, which lets
students in families making up
to $100,000 a year enroll in
New York’s public colleges tu-
ition-free, starting this fall.
The program, which costs
Tommaso Garavaglia, right, with Polti North America, demonstrated a machine designed to eliminate bed bugs at an expo last week.
you’d see on Wall Street than
the office of a pest-control
company,” he observed.
John Murphy, an industry
veteran and district sales
manager for rodenticide
maker Liphatech, was educat-
ing attendees about soft bait.
The options, each with a dif-
ferent flavor and toxin pro-
file, include “FirstStrike,”
“TakeDown,” and “Resolv.”
“I’ve never tasted it,” Mr.
Murphy said. “But rodents
love it. That’s the key. And
my goal is to kill.”
The lunch hour included a
networking session. Regula-
GREATER NEW YORK WATCH
POLICE-INVOLVED SHOOTING
$2.2 Million Awarded Hit-and-Run Crash
In Immigrant’s Death Critically Injures Man
A Manhattan federal court
jury on Tuesday awarded $2.2
million to the family of an emo-
tionally disturbed immigrant who
was fatally shot by police officers
when he allegedly lunged at them
with a knife. Mohamed Bah, a
28-year-old Guinean immigrant,
was shot in his home in 2012.
The city strongly disagrees
with the verdict and will appeal,
a spokesman said.
—Associated Press
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taxpayers $87 million this
school year for 23,000 recipi-
ents, kicks in after students
have exhausted other sources
of federal and state assistance,
and doesn’t cover fees.
Abbey Fashouer, a spokes-
woman for the governor, said
enrollment declines at private
colleges stemmed from rising
tuition and mounting student
debt. “Instead of criticizing
the state’s efforts, we encour-
age these schools to work in
partnership with us to make
tion was a hot topic. Joel
Nolasco, president of the
New York Pest Management
Association, said the trade
group employs a lobbyist to
counter government efforts
such as a recent attempt to
ban rodenticide.
“Last year we saw a rat
carrying a pizza,” he said,
referring to the New York
City subway rodent who be-
came a YouTube star. “Can
you imagine if you saw five
or six of those?”
Respect was another
theme. The pest-control in-
dustry isn’t appreciated, said
TRAFFIC
A man was seriously injured
in a hit-and-run crash near Union
Square in Manhattan, New York
City police say.
The 34-year-old man was in a
crosswalk when he was struck
by an SUV that was turning at
about 1 a.m. on Tuesday, author-
ities said.
The man was taken to Belle-
vue Hospital in critical condition,
officials said.
—Associated Press
* *** THE WALL STREET JOURNAL.
college more affordable for ev-
eryone,” she said in an email.
This year the state added
$3,000 tuition grants for stu-
dents at private colleges that
agree to match these awards,
in addition to $400 million
yearly in tuition aid through
other programs, she said.
The commission’s survey
found that overall freshman
enrollment roughly remained
flat, at 55,113, for 80 member
schools that responded. Its
leaders’ concerns focused on
Michael Joyce, senior account
manager with Pest Manage-
ment Professional magazine.
“Without their chemicals and
solutions and all the work
they do, we’d be surrounded
by bugs at all times,” he said.
The afternoon’s highlight
was a slideshow presented
by entomologist Louis Sor-
kin. He has taken many pho-
tos of bed bugs. Bed bugs
embedded in smoke alarms.
Bed bugs living in a slipper.
Bed bugs partying at the
IRS. “And here’s bed bugs
feeding on my skin!”
At day’s end, Mr. Linares
DANGLING: Two window washers were rescued Tuesday after
their scaffold got stuck at the Time Warner Center in Manhattan.
48 schools that rely mostly on
New York students and, by the
survey’s count, shed 1,535 jobs
during the past year.
The governor’s office says
enrollment at private cam-
puses was shrinking long be-
fore the Excelsior program. Its
officials cite state Education
Department data that indepen-
dent colleges and universities
had full-time undergraduate
head count of about 261,200 in
fall of 2016, down from about
272,700 five years earlier.
CAITLIN OCHS FOR THE WALL STREET JOURNAL
sounded a call to arms. “We
don’t get the respect we de-
serve,” he said to a burst of
applause. “We don’t get paid
what we deserve.”
At the cocktail reception,
Paul Siegel, who retired from
the New York Police Depart-
ment and is now president
of Y2K Bug Inc. in Queens
(“From thugs to bugs!”),
echoed these sentiments. No
one haggles with the electri-
cian or the plumber, he said.
But everyone tries to cheap
out on pest control.
anne.kadet@wsj.com
LUCAS JACKSON/REUTERS
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
When Your Job Makes You Queasy
As more companies get embroiled in public scandals, innocent employees search for ways to keep up morale
IT OFTEN STARTS with an awk-
ward question during a family
gathering or cocktail party: How
could you work for that company?
Is your employer making you
queasy?
More than a dozen prominent
employers have come under attack
recently over allegations of sexual
misconduct or harassment, abusive
sales tactics, lax handling of cus-
tomer data or inquiries into
whether their social-network plat-
forms are used for harm.
Employees often are vulnerable
to anxiety or even guilt when a
shadow is cast on their employer’s
image, says Annie McKee, author
of “How to Be Happy At Work.”
Some wonder, “Why am I here, if
this company is doing this thing
that I believe is wrong?”
There are ways to keep your mo-
rale up while working for an em-
ployer under fire. It might require
separating your own sense of iden-
tity from your employer’s image, or
looking for new ways to find pur-
pose or meaning on the job.
For some, the solution is to
head for the exit. Recruiters often
see “a flurry of activity when a
company’s name hits the head-
lines,” as employees test their
prospects in the job market, says
John Reed, senior executive direc-
tor of technology recruiting at the
staffing firm Robert Half in Menlo
Park, Calif.
Paulina Lopez wanted to work
LOUVRE ABU DHABI MELDS EAST AND WEST
MOHAMED SOMJI/LOUVRE ABU DHABI
The museum, designed by Jean Nouvel, opened to the public on Saturday and is located on Saadiyat Island.
LIFE&ARTS
WORK & FAMILY | By Sue Shellenbarger
for an employer she could feel
proud of, and thought she’d found
that at Uber Technologies Inc., Ms.
Lopez says. She liked her manager
and colleagues at the ride-hailing
company, and was treated well.
Extended family members
raised questions after seeing re-
ports of alleged sexism and sexual
harassment in Uber’s executive
ranks. “My family was asking,
‘You’re not like that. Why do you
want to stay at a place where
something like that could hap-
pen?’ ” Ms. Lopez says.
She considers herself a feminist,
and “staying there would have
meant going against what I believe
in”—not because she’d been treated
badly, but because she believed her
colleagues had been wronged in
ways that might affect her in the
future, she says. She parted on
good terms with colleagues and
moved on to a new job.
An Uber spokeswoman declined
to comment, but referred to steps
the company has taken recently to
prevent misconduct, including two
internal investigations, numerous
changes to improve workplace
culture, expanded manager train-
ing and formation of a new em-
ployee-relations team to address
complaints.
It’s harder these days for em-
ployees to separate their personal
identity from their job. “Nothing is
hidden anymore” because details of
corporate and personal life can be
8 Steps to Take if
You’re Embarrassed
By Your Employer
n Take time to calm feelings of
stress or anxiety.
n Consider other options before
quitting.
n Spend more time on job tasks
that are meaningful to you.
n Find something to love in your
company’s mission.
n Try to fix some part of the
company’s problem that you can
control.
n Strengthen relationships with
people at work you enjoy.
n Mentor and encourage subordi-
nates who show promise.
n Work on building skills that
will help you in the future.
shared widely on social media, says
Mary C. Gentile. She is the author
of “Giving Voice to Values,” a book
on acting on your values, and
founder of a program by the same
name based at the University of
Virginia Darden School of Business.
Attacks on a company’s ethics
cut especially deep for younger
employees, who place a higher
value on finding purpose and
meaning in their work, according
to a 2017 survey of nearly 8,000
millennial workers by Deloitte LLP.
Many employees stay on the job
MUSEUM REVIEW
Wednesday, November 15, 2017 | A13
anyway because they need the
paycheck or don’t see better op-
portunities elsewhere.
Others find satisfaction in fo-
cusing on personal career goals.
Gabby Toro-Rosa took a job at a
unit of Uber last year to gain sales
experience while waiting for an
opening at a public-relations
agency where she wanted to work.
While the negative publicity made
selling Uber’s services a little
harder, “I didn’t get worked up
about it, because I knew I was do-
ing my job,” she says. Her man-
ager treated her well, and she re-
cently moved on to the job she
wanted.
Dr. McKee advises figuring out
what parts of your work you can
control and asking yourself: Is
there a way for me to live my val-
ues and have a positive impact at
the company? One manager she
coached was frustrated by his em-
ployer’s toxic, disrespectful cul-
ture. He resolved to manage his
own team differently, and set up
processes to treat employees well
and reward them for successes,
says Dr. McKee, a senior fellow at
the University of Pennsylvania.
Some employees pitch a new role
that doesn’t yet exist, says Christine
Bader, author of “The Evolution of a
Corporate Idealist,” a book about
how to advocate inside companies
for social or environmental causes.
“If you feel there’s some potential
to do good work, then take some
BY A. J. GOLDMANN
Abu Dhabi
‘SEE HUMANITY in a new light,”
runs the slogan of Louvre Abu
Dhabi, which opened to the public
on Saturday, a full decade after the
project was announced by the gov-
ernments of France and this oil-
rich capital of the United Arab
Emirates. Light is the most arrest-
ing feature of Jean Nouvel’s breath-
taking museum, a consortium of
galleries and administrative build-
ings laid out like a medina, united
under a steel-and-aluminum double
dome of intricate latticework. The
gentle play of light and shadow in-
side this great canopy suggests the
shade of a date tree. Viewed from
the outside, the dome glistens in
the noonday sun. At night, it is illu-
minated from within: a shimmering
new monument visible from down-
town skyscrapers. Light also spar-
kles off the water that reaches the
steps of the museum, on Saadiyat
Island, creating a dazzling Venetian
effect in the Persian Gulf.
This melding of East and West
MARK MATCHO
time to explore whether you can do
that,” says Ms. Bader, a Seattle-
based former human-rights policy
manager at BP, the oil company. She
recently finished a two-year stint at
Amazon setting up programs aimed
at ensuring fair working conditions
among its private-label suppliers.
“There’s a shadowy side,” how-
ever, Ms. Bader says. “If you take
that thinking too far, to the point
that you’re rationalizing staying at
a place where you truly shouldn’t
be, then that’s no good.”
Nora Hamada hoped to provide
job seekers and employers person-
alized placement services when
she co-founded a recruiting firm
years ago. She wanted to invest
more time in placing candidates
than other recruiting firms did,
and to pay more attention to indi-
viduals’ needs and goals.
She was disappointed when her
partners didn’t appear to share
her values. “I wasn’t proud of the
work we were doing together. The
sense of purpose was no longer
there,” says Ms. Hamada, of New
York.
An employee quit after experi-
encing what Ms. Hamada consid-
ered verbal abuse. “It was a night-
mare. I was actually getting sick
from all the stress. I had to leave
the job for my own sanity,” Ms.
Hamada says.
After two years, she quit and
founded her own tech-industry re-
cruiting company, Mirus Search.
goes to the heart of Louvre Abu
Dhabi, whose aim is to narrate the
history and accomplishments of all
civilizations, presented as a contin-
uous flow. For this still-young
country, it is a bid for cultural rele-
vance in our globalized world. It is
also a radical rethinking of the in-
stitution of the museum and how it
should be organized.
Since the 18th century, the mod-
ern museum—and the Louvre in
Paris can be considered the mother
of all museums—has displayed
works by discrete time period, ar-
tistic school or geographical re-
gion. Louvre Abu Dhabi seeks to
unite everything that traditional
museum practice has cut asunder.
Given these goals, it might seem
remarkable that the Emiratis have
found such willing partners in the
French. Then again, money talks.
Abu Dhabi has leased the “Louvre”
trademark for 30 years and six
months for $525 million. When all
is said and done, that price will
soar to over $1 billion for continu-
ing costs, including expertise and
training from 17 French institu-
Please see LOUVRE page A15
A14 | Wednesday, November 15, 2017
A Bold Barracuda That’s All Muscle
Gary Dodane, 70, owner of Karl’s Barber
Shop in Fort Wayne, Ind., on his 1970 Plym-
outh Hemi Barracuda, as told to A.J. Baime.
In 1983, I bought a Hemi Cuda for $500.
At the time, I did not know much about
these cars. They had huge “elephant en-
gines,” but they got terrible gas mileage.
Gas prices were surging at the time, so peo-
ple were dumping these cars. When I bought
mine for $500, I thought I was overpaying.
I noticed the serial number had a lot of ze-
ros in it, so I contacted a man named Galen
Govier of the Chrysler Registry, a well-known
Gary Dodane, top, in Fort Wayne, Ind., with his 1970 Plymouth Hemi Barracuda. The car’s 426-cubic inch V-8 engine, rated at 425 horsepower, above center. Its well-cared-for interior, above right.
ADVERTISEMENT
Showroom
To advertise: 800-366-3975 or WSJ.com/classifieds
AVIATION
LIFE & ARTS
MY RIDE | By A.J. Baime
expert, to find out more about it. He asked
me to tell him nothing about the car, only
some numbers on an identification plate.
Two weeks later, he called and said, “Are
you sitting down?” I said no. He said, “Maybe
you should.” Using the numbers on the identi-
fication plate, he was able to tell me all sorts
of accurate details—the car’s color, the fact
that it was a four-speed and not an automatic,
that it had an eight-track tape deck, etc. He
knew that the speedometer of this car tops
out at 120 mph and that it had no tachometer.
Most importantly, he told me that my ve-
hicle was the first Plymouth Hemi Cuda
street car ever made. The car was only built
in 1970 and 1971. I have a document signed
by Mr. Govier that says, “This is the very
first 1970 Hemi Cuda hardtop built.”
[Mr. Govier confirmed this story. A Chrysler
representative who examined this document
and the car’s title said in an email that “it cer-
tainly looks like” Mr. Dodane’s story is true. “I
believe it [but] cannot prove it,” he said.]
The Plymouth Hemi Barracuda has
evolved into an iconic muscle car, highly de-
sired by collectors. The Hemi refers to the
BOATING
  
THE WALL STREET JOURNAL.
426-cubic inch V-8, a 425-horsepower motor
with hemispherical combustion chambers.
Very few of these vehicles were built, which
means most people have never even seen
one, except in pictures.
Since I found out about this car’s history
over three decades ago, I have driven it
about 30 miles, and I keep it at the National
Auto & Truck Museum in Auburn, Ind.
Someday soon I am going to sell my car, but
until then it’s my prize possession.
Contact A.J. Baime at Facebook.com/ajbaime.
RUTH YAROSLASKI FOR THE WALL STREET JOURNAL

   

 
    

  
   
  

  


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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | A15

LIFE & ARTS

HEALTH AND WELLNESS

When the Mirror Doesn’t Reflect Reality

Some patients with body dysmorphic disorder think they are hideous; doctors are trying to ‘retrain’ their brains
The idea is to have patients look
BY LUCETTE LAGNADO
at their entire face “all at once, as
opposed to looking at a specific
UNHAPPY WITH your nose or piece of their face,” he says. Be-
chin? Do you think you are fat or cause so many BDD patients strug-
that your hair is thinning? gle to do that, “that is the essence
When such commonplace con- of what we want to achieve.”
cerns spiral into obsessions, they BDD was identified as a psycho-
can be a sign of body dysmorphic logical malady in the late 1800s,
disorder, a complex psychiatric when it was called dysmorphopho-
malady in which sufferers focus bia and referred to an obsessive
on real or misperceived physical fear that a person’s body or part
flaws. The illness can lead a per- of his body is repulsive. Yet it re-
son to spend hours before the mained in the shadows of psychi-
mirror agonizing over minor im- atric research until the 1990s.
perfections. Specialists in body dysmorphic
Body dysmorphic disorder af- disorder called the UCLA work
fects far more people than an- “cutting-edge” and very promis-
orexia or schizophrenia. Anywhere ing. Katharine Phillips, a psychia-
from one out of 34 to one out of trist who has a private practice in
60 people have some form of the New York and is joining the fac-
malady, which can afflict individu- ulty of Weill Cornell Medicine and
als who are perfectly attractive, NewYork-Presbyterian in Decem-
even beautiful. Reality TV star Kim ber, says work on BDD has grown
Kardashian, on an episode of exponentially. As recently as the
”Keeping Up With the Kar- 1990s, Dr. Phillips recalls, “We
dashians” that aired last month, didn’t have any treatments—we
expressed concerns that she might didn’t know what to do.” These
be getting “body dysmorphia.” A days, the two most common
representative for Ms. Kardashian treatments—cognitive behavioral
declined to comment. therapy and certain antidepres-
GABY D’ALESSANDRO

Depending on the intensity of sant medications—do work.

their disease, sufferers can think “When they are implemented, a
of themselves as deeply unattract- majority of people substantially
ive, even hideous, according to Ja- improve, and those treatments
mie Feusner, a professor of psychi- are lifesaving,” she says. Still,
atry at UCLA who has conducted “there is room for new treat-
studies on body dysmorphic disor- the Bio Behavioral Institute, a turned to college. These days, she be effective,” says Dr. Feusner, di- ments,” she says, and Dr. Feus-
der. While the disorder is serious treatment center in Great Neck, is studying psychology and hopes rector of the UCLA Eating Disor- ner’s studies on the brain offer
enough that it can lead to institu- N.Y., that specializes in BDD. to spread the word about BDD. ders and Body Dysmorphic Disor- “fantastic” prospects.
tionalization or suicide, he worries Julia, a 21-year-old college stu- Traditionally, psychologists and der Research Program. Dr. Neziroglu, a professor of
that so little is known about it, dent, traveled to New York from psychiatrists have used a combina- With grants from the National psychiatry at the Zucker School of
even professional therapists may Colorado to be treated by Dr. tion of behavioral therapy and Institute of Mental Health in Wash- Medicine at Hofstra/Northwell,
fail to diagnose it. Neziroglu last year. Julia, who medication to treat the disorder. ington, Dr. Feusner has been exam- uses more classical methods of
“It can happen to pretty people, asked to be identified by her first But Dr. Feusner has been trying ining possible malfunctions in the cognitive behavioral therapy that
it can happen to people who are name only, said she was obsessed out a brain-centered approach. brain that can shed light on the build on her therapists’ relation-
average-looking,” Dr. Feusner says. with the size of her forehead and While therapy and medication can malady. An experiment in a study ships with patients. The psycholo-
His BDD patients can’t see their didn’t think there were adequate help, he says, they don’t work for he is conducting at UCLA involves gists help patients try to develop
own physical beauty, he explains. treatment options nearby for BDD. everyone and don’t allay all symp- having patients with the disorder the confidence to venture out in
Indeed, they struggle to see their A local therapist didn’t help much. toms. A key to addressing BDD, he lie in an MRI machine, wearing public by accompanying them to
entire face and fixate instead on “I had a lot of shame about my says, is understanding why pa- goggles that display an image of restaurants, department stores or
their supposed blemishes. Actual forehead,” Julia says. The obses- tients struggle to process images their face. The patient is told to Starbucks.
physical appearance “has nothing sion, which began in high school, of themselves realistically. Can stare at a point at the center of Dr. Neziroglu also uses mirrors
to do with it.” led her to get bangs. Generally, she their brains be “retrained” to see their face rather than focusing on to help patients see themselves
It strikes men and women and says, “I felt that I was ugly.” themselves without only focusing the part they would typically ob- realistically. She calls the tech-
can also affect children as young After a month and a half of on the imperfections? sess about. The scanner takes im- nique “mirror retraining—when
as 7 to 10 years of age, says Fugen treatment with Dr. Neziroglu and “We believe that we need to ages of areas of their brain to you look in the mirror, try to see
Neziroglu, a psychologist who runs her team of psychologists, Julia re- change the brain for treatment to probe for any abnormalities. the totality of you.”

LOUVRE
Continued from page A13
tions, 13 of which will lend
artwork to Abu Dhabi over
FROM TOP: © MUSÉE D’ORSAY, RMN-GRAND PALAIS; MUSÉE DU LOUVRE/HIGH MUSEUM OF ART

the next decade.

The Emiratis have gotten
their money’s worth. No one
ever expected France to part
with the Mona Lisa. But the
Louvre has sent over an-
other first-rate Leonardo,
“La Belle Ferronnière”
(1495-99), a psychologically
piercing portrait on wood
exhibited in a gallery that
juxtaposes Renaissance mas-
terpieces with optical theo-
ries devised in the Arab
world. The Leonardo, on
view during the inaugural
year, is only one of many
outstanding works among
the 300 French loans that, at
present, make up roughly
half of the core exhibit.
Among the antiquities,
the diorite statues of “King
Ramses II” (1279-13 B.C.)
found at Tanis and “Gudea,
Prince of Lagash, Praying” Vincent Van Gogh’s 1887 ‘Self-Portrait,’ above, and ‘Gudea, Prince
(c. 2120 B.C.) from Iraq are of Lagash, Praying’ (c. 2120 B.C.).
especially imposing. When it
comes to the paintings, the quently as vexing as it is en-
loans are incredible. joyable. Several of the rooms
Jacques-Louis David’s monu- feel like well-considered
mental canvas of Napoleon shows in their own right—
crossing the Alps (1803), the gallery devoted to sacred
lent by Versailles, dominates
a gallery that also features
texts, for example—or robust
private collections, but the
Man of Style
non-Western rulers. In the
19th-century gallery, we find
museum, as a whole, does
not provide a compelling ar-
Gem Cufflinks
magnificent loans from the gument for displaying man-
Musée d’Orsay, including kind’s arts and objects in a Impeccable style. Magnificent jewels. Timeless designs.
Whistler’s most famous can- single continuum. The new Designed in sleek and sophisticated geometric motifs,
vas, “Arrangement in Grey light the museum invites us these stylish cufflinks exemplify classic luxury.
and Black No. 1” (1871); Ma- to see humanity in could
net’s “The Fifer” (1866); and stand to be more vivid. On Top: Sapphires: 5.36 ctw. Diamonds: 2.49 ctw.
another familiar face, that of the positive side, there is
Van Gogh, in his 1887 self- blessedly little “we are one” Set in 18K white gold. #30-6563
portrait. Nearby is Gauguin’s sermonizing. Bottom: Diamonds: 2.09 ctw. Emeralds: 0.88 ctw.
“Children Wrestling” (1888), In the final gallery, de- Set in platinum. #30-6637
one of the hundreds of voted to the art of our young
works that have entered century, the museum’s insis-
Louvre Abu Dhabi’s own di- tence on a truly universal
verse collection over the cross-pollination of the arts
past decade, in addition to makes the most sense, since
paintings by Bellini, Mon- our ever-connected reality
drian and Cy Twombly. puts the world at the finger-
The French curators cre- tips of artists and their pub- mous buildings never built,
ate many sophisticated lic. The final word goes to Ai as well as to Abu Dhabi’s fu-
cross-cultural juxtapositions. Weiwei, with his “Fountain turistic skyline. Slanting up
But what does it mean to of Light” (2016) commis- to a Nouvel skylight, it also
represent all of human cul- sioned for the museum. This seems like a cheeky reflec- 630 Royal Street, New Orleans, Louisiana • 877-677-2801 • ws@rauantiques.com • rauantiques.com
ture, art and achievement dazzling assemblage of 10 tion on the utopian mission
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ing your way through this China nods to Babel and Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
narrative laid out over Mr. Vladimir Tatlin’s “Monument Mr. Goldmann writes about
Nouvel’s dozen elegantly to the Third International” international arts and
flowing galleries is fre- (1919), one of the most fa- culture.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL.

SPORTS

KYLE TERADA/REUTERS

Steph Curry heats up in the third quarter.

THE COUNT
WHEN WARRIORS
POUR IT ON

SHABAN ATHUMAN/GETTY IMAGES

The Golden State Warriors begin every
game as a great team with more talent
than anyone else in the league. Only when
they come out after halftime do they
bother transforming into the greatest bas-
ketball team the NBA has ever seen.
Their offense is better. Their defense is
better. Their turnover rate is lower and
their effective-field-goal percentage is
higher. In other words: This is when the
Warriors turn into the Warriors.
Golden State is outscoring its opponents
by an outrageous 28.2 points per 100 pos-
sessions in the third quarter. That’s right:
28.2 points. There hasn’t been a better sin-
gle-quarter net rating since at least the
2003 season, according to Stats LLC. The
Warriors have won their last seven third
quarters by an average of 12.6 points.
They’ve won all seven games.
“For whatever reason,” Golden State
coach Steve Kerr said, “the third quarters
have been good to us lately.” And then he
listed some of those reasons. “I think we
get more focused in the third quarters,” he
said. “We’ve been turning it over quite a bit
in the first half. But third quarters, we tend
to tighten it up.”
Their offense in the third quarter scores
124 points per 100 possessions. To put that
in perspective, the Warriors matched the
NBA record for offensive rating last year,
and they only scored 115.6 points per 100
possessions.
The Warriors play the Boston Celtics on
Thursday night in what could be a Finals
preview. And there is epic potential for the
third quarter: Boston’s net rating of 24.6
points in that period would be the NBA re-
cord if only the Warriors didn’t exist.
—Ben Cohen
Rolling Quarters
How this year’s Warriors and Celtics compare
with teams with the best single-quarter point
differentials per 100 possessions, since 2002-03:
TEAM SEASON
Warriors  2017-18
Celtics 2017-18
Warriors  2016-17
Warriors  2015-16
Cavaliers 2008-09
Warriors 2014-15
Thunder 2012-13
Mavericks 2002-03
Warriors  2014-15
Suns 2004-05
Note: Through Monday
The Tennessee Titans have surrounded quarterback Marcus Mariota with young offensive talent and the strategy is starting to pay off.
NFL
How to Build Around a Quarterback
ents that aren’t only good, but they’re cheap. pect like the Titans have done with Mariota
BY ANDREW BEATON
Tennessee’s rebuild began with an idea through his first three seasons.
that sounds simple: Drafting a franchise The Titans have showered Mariota with
Nashville quarterback isn’t enough to build an offense. 4,640 points of offensive talent, adding up all
FIVE YEARS AGO, the Indianapolis Colts Ever since the Titans drafted Mariota No. the offensive players they’ve drafted in the
appeared to have a stranglehold on the AFC 2 overall in the 2015 draft, they haven’t first four rounds, after which the expected
South for the next decade. They had just stopped adding offensive pieces around him. value of picks becomes negligible. That’s
gone 11-5 in their first year with Andrew Robinson compares it to building a house about twice the average for quarterbacks se-
Luck, a quarterback prodigy who delivered a and the first thing his quarterback needed lected first or second overall since 1998.
dizzying turnaround from the team’s 2-14 was a solid foundation. “If you go get that franchise quarterback,
campaign the previous year. Despite spending their top pick in 2014 on go get him some help,” said offensive coordi-
It looked like the model rebuild for the an offensive tackle, Taylor Lewan, they did nator Terry Robiskie. “Some guys turn around
modern NFL: Spend a year in the cellar, land say, ‘I’m going to go the other way. I’ve got
a high draft pick and nab the right quarter- him, and he’s going to win the game.’”
back. Voila. That’s all that was needed. Mariota has been among the best pro-
Now the team with the brightest future in
The Titans said protecting tected and least exposed quarterbacks in the
the division is the Tennessee Titans. And Mariota was ‘first and foremost.' NFL—27 quarterbacks have been sacked
here’s what’s most telling: They have gotten more than he has this year.
to this point by, in many ways, doing the ex- At the same time, investing top draft
act opposite of the Colts. picks at some of the positions that draw the
While Indianapolis enjoyed a meteoric rise, the same thing in 2016 with Jack Conklin, highest salaries, like quarterback and re-
Tennessee’s growth has been maddeningly giving their at-times fragile quarterback two ceiver, has given Robinson and coach Mike
methodical. Some fans grew frustrated, saying personal bodyguards at the premier positions Mularkey the flexibility to splurge else-
the process was too slow and conservative. on the line. where. Last offseason, the Titans spent more
But it has produced a team that looks like
it can sustain its success over the long term
After that, the Titans accessorized. They
spent a second round pick in 2016, acquired
than $80 million on defensive free agents.
All the while, the Tennessee offense, once
possibly better than any team in the NFL. from the Rams when they traded up for mocked for lacking explosiveness, has
These days, few teams look smarter than the Jared Goff, on star Alabama running back steadily improved. From 2015 to 2016, the
Titans, who are 6-3 entering Thursday Derrick Henry, a Heisman Trophy winner Titans jumped from 28th in scoring to 14th.
QUARTER PER 100 night’s game against the Steelers. who along with DeMarco Murray now forms This year, they’re 13th.
3Q 28.2 The key difference in philosophies: The one of the NFL’s best backfield tandems. Robiskie, who runs the offense that Mu-
3Q 24.4 Colts invested little in young talent to sur- With this year’s No. 5 overall pick—again larkey dubbed “exotic smashmouth” for its
3Q 22.7 round their star quarterback, who was con- part of the Goff trade—Tennessee took wide run-heavy schemes that take advantage of
1Q 20.0
stantly battered and bruised and now will receiver Corey Davis. The team then spent Mariota’s versatility, says there are distinct
miss the entire 2017 season due to a shoul- its two third-round picks on another wide advantages to having a gaggle of young
1Q 17.6
der injury. On the other side, no team in the receiver and a tight end. players learn together.
2Q 17.4 last two decades has been as committed to This may sound completely normal, even Basically, he says, the players have bought
1Q 15.5 supporting its prized quarterback as the Ti- logical, but it’s nothing like how teams typi- in because they haven’t been previously ex-
3Q 14.9 tans have with Marcus Mariota. cally act after selecting a top quarterback. posed to other concepts and terminology in
3Q 14.9 “Marcus is an integral part of our of- According to the draft value chart, devel- the NFL.
2Q 14.8 fense,” said general manager Jon Robinson, oped by former coach Jimmy Johnson and “It’s just that old theory of life,” Robiskie
“but protecting him was first and foremost.” which awards points to each draft slot based said. “It’s a new young puppy who learned
Source: Stats LLC; WSJ
A not-insignificant side benefit is that the on its expected value, no team since at least those old dog tricks early.”
Titans have a host of blue-chip offensive tal- 1998 has supported a top quarterback pros- —Michael Salfino contributed to this article.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
d
Edmonton 0s <0 1 2 3 4 5 6 7 8 9 10 11 12 13Down 32 Pen
Vancouv
Vancouver 30s 10s 30s 0s 1 Sierra Nevada 33 Song of David
C l ary
Calgary 14 15 16
10s lake 34 Municipal
Seattle ip
Winnipeg 17 18 19
20s 2 Yoga posture 35 Luncheonette
30s
P
Por d
Portland 20s t
Montreal 30s 20 21 22 3 Stadium lure
l
Helena
Eugen
Eugene 50s Ottawa surprise 36 Absolut rival,
20s Bismarckk A g t
Augusta 40s 23 24 25 26 27 28 29
i
Boise Billings l /St
/ Paul
Mpls./St. P
Pau T
Toronto 30s Albany 50s
4 Legal matter for short
A bany t
Boston
30s 40s 30 31 32 33 5 Joe Bruin’s sch.
P
Pierre
rtford
Hartford 60s 37 Island chain?
40s 50s k
Milwaukee t
Detroit Buffalo 40s
oux F
Sioux ll
Falls ew York
New Y k 70s 34 35 36 37 38 39 6 Flight 38 Patisserie
Chi g
Chicago
50s Reno lt Lake
Salt L C
City Che
h y
Cheyenne es Moines
Des i Cleve d
Cleveland component treat
h
Omaha Phhil d lphi
Philadelphia 80s
Sacramento Spring
p i gfi ld
Springfield di
Indianapolis b
p li Pittsburgh 40 41 42 43 7 “Happy
60s Denver
Kansas Ch
Charles
l t
Charleston hington
hi gton D.C.
Washington D.C
DC 90s 42 Lens holder
an Francisco
San Topek
Topeka Birthday” artists, 45 Bond order
C d
Colorado City 44 45 46 47
50s Wichita h
Richmond d 100+
70s Las
Ve
Vegas
p g
Springs h St.. Louis Lo
Lou ill
Louisville perhaps
50s Raleigh gh
h 48 49 50 47 Elephant org.
A
Angel
Los Angeles 70s h ill
Nashville C h l
Charlotte
8 “Then again, I
Santaa Fe
F Oklahoma City ph
h
Memphis
C b
Columbia 51 52 53 54 55 56 57 could be wrong” 49 Be a
Ph Albu
b q q
Albuquerque whistleblower
San Diego 80s Phoenix 60s LLittlee Rockk
gh
Birmingham Atl t
Atlanta Warm Rain
9 Parental threat
Tuc
Tucson P
El Paso D
Dallas 58 59 60 61 62 52 Ultrasound
to a misbehaving
60s Cold T-storms targets
Ft. Worth Jackson Mobile
bil k
Jacksonville 63 64 65 66 67 child
20s A ti
Austin 53 Pose again
70s t
Houston 70s Stationary Snow 10 Hit the books
d
Orlando 68 69 70
10s 0s ew Orleans
New
Tampa 11 Post-explanation 55 Where you
80s an Antonio
San A i
30s A h g
Anchorage Honolulu
l Showers Flurries 71 72 73 chorus might see some
80s 80s Miami
12 Nation south of big bucks
70s
40s Ice 56 “Your Movie
DRIVE AROUND THE BLOCK | By David Poole the Strait of
Sucks” author
Hormuz: Abbr.
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W
Across 34 Potluck staples 54 Wash and 13 Inc. relative 57 Mottled mount
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Sign of spring 39 Blood count, chop the veggies, 59 Squabble
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Omaha 55 27 s 51 42 pc Frankfurt 44 33 pc 44 35 pc
say 19 Drill bits?
Orlando 78 61 pc 76 58 pc Geneva 47 29 pc 46 33 pc 7 Cloud chamber familiarly? 60 “Zounds!”
Today Tomorrow 22 Storied shrine
Philadelphia 53 45 pc 58 36 pc Havana 80 68 pc 80 66 sh bit 40 NYC’s first 58 Walked
City Hi Lo W Hi Lo W Phoenix 85 60 pc 86 61 s Hong Kong 79 73 pc 80 74 c 24 1960s campus 61 Loser to Clinton
10 Aretha’s realm subway line unsteadily
Anchorage 23 18 s 25 17 sn Pittsburgh 51 41 pc 42 27 c Istanbul 65 55 s 63 54 c org. in 1996
Atlanta 60 45 s 67 42 pc Portland, Maine 42 32 pc 48 28 r Jakarta 91 76 t 88 75 sh 14 Detail 41 Cognac-and- 62 It’s a cinch in
Austin 77 63 c 80 63 sh Portland, Ore. 49 43 r 49 40 sh Jerusalem 71 51 s 73 50 pc Sapporo 27 Butler to 63 City close to
15 Zagreb’s nation, Cointreau the Tropic of
Baltimore 52 42 pc 57 35 pc Sacramento 60 53 r 62 44 sh Johannesburg 74 45 t 62 43 pc Morticia and
Boise 52 43 r 53 34 sh St. Louis 60 32 r 48 37 s London 55 46 c 55 39 sh on Olympic drink, and what 63 Honus Wagner Capricorn
Gomez
Boston 45 38 pc 50 36 r Salt Lake City 60 48 pc 59 44 c Madrid 60 35 s 64 38 s scoreboards each of this baseball cards,
Burlington 45 36 pc 47 28 c San Francisco 66 56 sh 64 51 sh Manila 90 77 pc 89 78 pc puzzle’s border e.g. 28 Roll with life’s 64 Slot machine
Charlotte 58 38 s 66 36 s Santa Fe 60 32 s 65 42 s Melbourne 86 63 t 71 60 sh 16 Pointing pronoun answers is punches lever
Chicago 51 31 r 40 32 pc Seattle 51 42 r 49 40 c Mexico City 74 46 pc 73 46 pc 66 Favorable, as an
17 Major headache 43 Apple core, opportunity 29 Concentrate 65 Appeared in the
Cleveland 50 38 r 43 29 c Sioux Falls 41 20 s 46 38 pc Milan 52 33 pc 53 35 s
Dallas 73 60 r 75 63 sh Wash., D.C. 53 44 pc 59 37 pc Moscow 35 32 c 39 30 sn 18 Gung-ho briefly 31 He lost to DDE paper
68 Nation north of
Denver 55 33 pc 70 44 s Mumbai 91 72 pc 91 73 pc 20 Four quarters 44 “Va-va-va-___!” the Strait of twice 67 Old platters
Detroit
Honolulu
46 36 r
85 71 pc 85 71 pc
43 28 c
International Paris
Rio de Janeiro
50
86
40 pc
72 s
51 40 pc
92 75 s 21 Loan application 46 Couple on a bus Hormuz
Today Tomorrow Previous Puzzle’s Solution
Houston 80 61 s 80 64 pc Riyadh 87 57 s 86 55 pc stamp 48 White Rabbit’s 69 Sixth col., often L I V E S T A R R E A C H
Indianapolis 50 32 r 43 30 pc City Hi Lo W Hi Lo W Rome 60 46 c 63 46 s
Kansas City 58 31 pc 53 44 pc Amsterdam 55 47 c 54 42 c San Juan 89 76 sh 88 77 sh
23 Bolts down lament 70 Tijuana Brass A S I F N I N E A R R A Y
V A N I L L A I C E C R E AM
Las Vegas 74 58 s 78 63 pc Athens 70 61 t 67 57 t Seoul 44 27 s 43 34 s 25 Puerto Rico hrs. 50 Contents of trumpeter A N G L E T A X I A N N
Little Rock 64 47 sh 62 51 c Baghdad 82 55 s 80 55 s Shanghai 64 55 pc 63 60 r R E D S N A P P E R
Los Angeles 77 61 pc 73 60 c Bangkok 92 77 pc 89 78 t Singapore 87 76 t 86 76 t
26 Seasoned rice magazines 71 Luxury hotel S H R I K E E R O I C A
Miami 82 72 pc 81 71 sh Beijing 45 21 s 46 29 s Sydney 76 64 pc 76 67 t dish 51 Heliopolis Palace name B O A N I C K E L C MO N
A L M S C I A K N O T
Milwaukee 50 31 r 39 33 pc Berlin 47 42 c 47 38 pc Taipei 80 71 c 85 69 pc 30 Homeboy’s setting 72 Tailor’s concern B E E P A O R T A S O R E
Minneapolis 37 23 pc 37 34 c Brussels 52 44 c 51 44 pc Tokyo 59 49 pc 57 45 pc A S S A I L E N A C T S
Nashville 61 44 sh 59 36 pc Buenos Aires 85 49 t 74 55 s Toronto 45 38 pc 43 24 c
address 52 Canton of central 73 Conquistador R O O F I N G T A R
33 False front? Switzerland Hernando P S A D U O S A T E AM
New Orleans 75 54 pc 75 55 pc Dubai 90 70 s 87 73 s Vancouver 49 41 r 47 38 sh L I Q U I D A T I O N S A L E
New York City 49 44 pc 55 36 pc Dublin 51 46 c 48 35 sh Warsaw 44 36 c 45 34 c U T U R N MO L D A D AM
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 62 41 c 61 52 c Edinburgh 48 42 c 48 37 sh Zurich 44 24 pc 39 28 pc S H A L E Y O K E T Y P E

For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Impeach Tom Steyer
It won’t
strike many
readers as
an improba-
ble develop-
ment, but it
should: Con-
BUSINESS
WORLD gress is en-
gaged in a
By Holman W.
once-a-gen-
Jenkins, Jr.
eration at-
tempt to re-
write the tax code; legislators
are flailing after revenues.
And a carbon tax is not even
part of the discussion.
It’s difficult now to recol-
lect the nonpartisan, non-
hysterical environmental
movement of the 1990s. You
don’t need to believe in cli-
mate catastrophe, advocates
said. A tax system has to tax
something. Taxing carbon is
better than taxing work and
investment.
Kevin Hassett, now Donald
Trump’s chief economist, was
a supporter. So was Greg
Mankiw, doing the same job in
the George W. Bush adminis-
tration. Republican stalwarts
like James A. Baker, Henry
Paulson, George P. Shultz, Mar-
tin Feldstein and Mitt Romney
climbed aboard at various
times. Even resident skeptic
Sen. James Inhofe called it the
“honest approach” to dealing
with CO2.
The catechism wasn’t plan-
etary doom but win-win. Un-
derstand: Energy taxes are un-
popular with voters, thus with
politicians of either party, so
a carbon tax was never likely
to pass on its own. Yet a car-
bon tax has repeatedly been
on the table to solve revenue
problems connected with, say,
A Ford Exec Who Took the Long View
The older I
get, the more
drawn I am to
obituaries, but
not for the ob-
vious reason.
POLITICS They often of-
fer a reminder
& IDEAS
of the United
By William
States as it
A. Galston
used to be,
and they make
me wonder whether we have
lost something precious.
I had one of these moments
this weekend, when I read
about the death of Arjay
Miller, 101, who was president
of Ford Motor Co. and later
dean of Stanford Business
School. Under Miller’s leader-
ship (1963-68), Ford modern-
ized its management, intro-
duced the highly successful
Mustang, and achieved record
earnings.
At the same time, Miller
made Ford take automobile
safety seriously while General
Motors lagged behind. The
choice cost Ford sales because
some customers balked at pay-
ing for innovative equipment
such as seat belts. Miller de-
fended his policy as the right
thing to do and said corporate
leaders should always ask
themselves whether they were
willing to have their decisions
publicly reported. Volkswagen
executives have paid dearly for
ignoring this advice, and they
are not alone.
After leaving Ford, Miller
helped move Stanford into the
top rank of business schools
by diversifying the faculty and
Trump’s de Facto Small-Business Tax
By Violet Tran
T
hank you, Mr. President,
for visiting my country.
I hope you enjoyed your
stay in Vietnam as much as I
am enjoying my time in the
U.S.
I worked hard to obtain my
American education and have
since contributed to the U.S.
economy. Following my stud-
ies here, I applied through my
employer for an H-1B work
visa. I was one of the fortu-
nate few who were selected
through the random drawing
conducted each year. I had es-
caped the unwelcome pros-
pect of being ineligible to con-
tinue working when my
temporary work authorization
expires in early January 2018.
Or so I thought.
But winning the lottery is
no longer enough. In late
September, my employer’s at-
torneys informed us of a new
hurdle we must navigate to
convince the U.S. Department
of Homeland Security further
the Obama fiscal cliff debate
or the expiration of the Bush
tax cuts, etc.
What changed? Al Gore,
followed by the subject of this
column, Tom Steyer. Mr. Gore
turned climate politics toward
hysterical exaggeration and
vilification of opponents.
Wedge politics is valuable for
many things, such as generat-
ing media heat and helping
Mr. Gore to bask in the pane-
gyrics of a growing legion of
admirers. One thing it isn’t
good for is getting things
done in our political system,
which requires bargaining and
compromise.
Issues like guns and abor-
tion—and now climate
change—delight party hacks
because they become bottom-
less wells to draw upon. They
are meant to be milked, not
resolved.
It took no special cunning
on the part of a restless Cali-
fornia hedge fund billionaire,
a k a Mr. Steyer, to notice that
climate change is now a sa-
cred question among progres-
sives, an occasion for us-vs.-
them tribalism, brooking no
debate.
Anybody, though, might
have noticed that the Gore ap-
proach produced no results
and ultimately discredited the
cause. Mr. Gore himself is less
heard these days, having
turned his focus to money-
making. Mr. Steyer picked up
the cause as his own passport
to celebrity—yet failed to do
the obvious thing and rethink
a strategy that so manifestly
has failed.
Who knows what goes on
in the head of somebody like
student body while expanding
coverage of ethics and public
policy. He founded the Eco-
nomic Development Corpora-
tion of Detroit, supported
black-owned and -operated
business, and backed a nega-
tive income tax to reduce pov-
erty. “Making money is the
easy part,” he declared. “Mak-
ing the world a better place is
the hard part.”
I wonder how many of to-
day’s executives would be pre-
pared to sacrifice sales and
profits to do the right thing.
Most of them have been
taught that maximizing share-
holder value is their sole re-
sponsibility—and if this means
ignoring the needs of workers
and the well-being of local
communities, so be it.
Miller’s example is espe-
cially relevant today, as Repub-
licans in the House and Senate
consider tax legislation that
would allow corporations to
repatriate foreign assets at
concessionary rates. The bills’
drafters are assuming that ex-
ecutives will use these funds to
invest in their businesses.
But that’s not what hap-
pened the last time this was
done, in 2004, when corpora-
tions were allowed to bring
back overseas assets if they
paid a tax of only 5%. During
the next three years, the 15
companies that repatriated the
most raised salaries for senior
executives, cut more than
20,000 jobs, decreased invest-
ment in research, and ex-
panded dividends and stock
buybacks. All this happened
that my employment is nec-
essary.
According to data from the
U.S. Citizenship and Immigrai-
ton Service, U.S. immigration
authorities issued 85,000
challenges, known as “re-
quests for evidence,” to H-1B
petitioners in the first eight
My H-1B visa is under
challenge, and it’s
costing my employer.
months of 2017. That’s a 45%
increase over the same period
last year, even though the to-
tal number of H-1B visa peti-
tions rose less than 3% during
this time.
What exactly is an RFE? A
request from U.S. immigration
authorities for additional evi-
dence that my job represents
a “specialty occupation,” a po-
sition requiring at least a
bachelor’s degree or the
equivalent. Though many of
OPINION
Mr. Steyer? He pays Demo-
cratic operatives to tell him
what a great guy he is, and
they take his money and
spend it on Democratic poli-
tics as usual. Mr. Steyer has
invested at least $200 million
in recent years promoting
Democrats and attacking Re-
publicans, with the result that
Democrats are wiped out in
large parts of the country and
Donald Trump is president.
The ultraliberal
billionaire is the
enemy of every
cause he promotes.
Mr. Steyer is the talking
head in an open-collar shirt
now seen in a $20 million pe-
tition campaign calling on
Congress to impeach a car-
toon version of Mr. Trump.
The ads are running on the
national news channels—and
on California TV. Mr. Steyer
keeps hinting he’s available to
run for governor or Dianne
Feinstein’s Senate seat. In the
feverish hothouse of Califor-
nia Democratic politics,
maybe extreme anti-Trump-
ism really is his ticket. Or
maybe he’s a Republican mole.
Because if there’s one thing
Democrats can do to assure
Mr. Trump’s re-election, it’s to
follow Mr. Steyer in painting
Mr. Trump and his voters as
crazy, racist and beyond the
pale.
The most interesting mo-
ment in a New Yorker profile
several years ago described
despite the letter of the law,
which specified that the funds
be used for investing in re-
search and the workforce and
prohibited their use for com-
pensating executives and re-
purchasing stock.
Law is a blunt and often in-
effective instrument for induc-
ing corporate leaders to take a
broader view. They have enor-
mous discretionary authority.
Populism could
intensify if corporate
tax cuts don’t yield
benefits for workers.
The question is how they
choose to use it. Legality is
just the beginning. “Moral
judgment transcends legali-
ties,” Miller once said. So does
moral responsibility.
The tax bills now under
consideration in the House
and Senate represent the
largest corporate tax cuts in
many decades. If these bills
pass, average Americans will
expect something in return—
higher wages, better working
conditions, and more oppor-
tunities for their children. If
corporations take the money
and run, public retribution
will be severe.
Earlier this week, a group
of 400 rich Americans sent a
letter to Republican members
of Congress. Their message:
don’t cut our taxes. We don’t
need the money; others do.
the applicants for H-1B visas
are sponsored by technology gi-
ants such as Microsoft, Google
and Apple—which have the fi-
nancial resources to weather
the risk of a failed H-1B peti-
tion—my company, a boutique
digital-media and public-rela-
tions consultancy in New York,
is not one of them.
For my employer, the RFE
is the functional equivalent of
a small-business tax—one that
will cost the company thou-
sands of dollars in legal fees
and countless hours to mar-
shal additional “evidence”
about the firm’s business and
my role in it. U.S. immigration
services are asking—among
other things—for copies of my
firm’s office lease agreement,
company brochures, an orga-
nizational chart, and plenty of
documents we have already
filed with the Internal Reve-
nue Service.
In a country that prides it-
self on a heritage of free en-
terprise and encouraging risk-
taking small-business owners
Mr. Steyer’s lack of interest in
the details of climate science
or climate policy. His conspic-
uous failure to spark a ground-
swell of demand for himself as
a candidate may be one thing.
His and his movement’s aston-
ishing incompetence on behalf
of their ostensible cause is
something else.
The alleged threat of cli-
mate change is now part of
the consciousness of every
human being on Earth. The
virtues of a carbon tax are not
in dispute. It’s a way to raise
money that doesn’t weigh on
incentives to work, save and
invest. It obviates many cor-
rupt and inefficient handouts
to “green energy.” It survives
even the recent downward
scientific estimates of “cli-
mate sensitivity” and thus the
severity of expected future
climate change. Yet the natu-
ral constituents for such a tax
have made themselves so non
grata with their lies and slurs
(equating opponents to Holo-
caust deniers) that they are
not welcome at the table.
More to the point: Their pres-
ence is not required at the ta-
ble simply as a matter of vote
counting.
Even Barack Obama report-
edly was irritated by Mr.
Steyer’s promotion of ab-
surdly dishonest numbers for
the alleged CO2 consequences
of the Keystone pipeline. At a
moment when a carbon tax
might solve the revenue prob-
lems of GOP tax reformers
while bringing aboard useful
Democratic votes for tax re-
form, the carbon tax forces
are nonplayers. Nice job,
Messrs. Gore and Steyer.
Besides, it is folly to add $1.5
trillion to already dire forecasts
of the growth of the national
debt over the next decade.
This is a good start. But in
addition to political responsi-
bility, America’s financial elite
ought to exercise business re-
sponsibility. America needs a
new era of broad-minded, so-
cially aware corporate leaders
who understand the long-
term relationship between the
well-being of their companies
and the well-being of their
country.
An environment in which
profits soar while wages stag-
nate may make for satisfied
shareholders. But the revolt
against the arrangements that
sustain this imbalance is al-
ready under way. Today the
targets are immigration and
trade treaties. Tomorrow the
demands could include restric-
tions on the ability of corpora-
tions to shutter plants and fire
workers at will. The day after
tomorrow, if massive corpo-
rate tax cuts yield no benefits
for workers, we could see an
intensified revolt against
elites, not only cultural elites,
but the captains of industry
and finance as well.
Taking the long view is self-
interest rightly understood. It
means refraining from squeez-
ing the last bit of profit out of
your business right now in or-
der to secure a flow of profit
over time. The economy rests
on a set of political arrange-
ments that the people can re-
vise and—if things get bad
enough—upend.
to decide how best to run
and grow their commercial
operations, why is the well
documented success of the
H-1B visa program being
thwarted?
This is a program that our
firm’s management believes
has contributed mightily to
the success of the business. I
am only the latest in a series
of H-1B applicants sponsored
successfully by the firm. One
of these prior applicants rose
to become a partner.
One year ago, Mr. Trump,
you were elected president
by campaigning on the idea
that you were going to make
America great again. When I
look back over the history of
the U.S., I see how much im-
migrants have contributed to
that greatness. I hope your
administration will also allow
me to help you in your goal
of making America great
again.
Ms. Tran is an associate at
RooneyPartners.
Wednesday, November 15, 2017 | A17
BOOKSHELF | By David Shenk
A Twenty-First
Century Scourge
In Pursuit of Memory
By Joseph Jebelli
(Little, Brown, 301 pages, $28)
S
omething odd happened after I began working on a
book about Alzheimer’s disease almost 20 years ago.
Almost universally, as soon as I mentioned the topic
to a friend or colleague, I got the same instant response:
“What was that? I just forgot what you said.”
Probably the dumbest joke ever uttered, and yet I kept
hearing it, from person after person. They all knew it
wasn’t funny; most were embarrassed to have blurted it
out. Why was this happening?
Finally, it hit me. I wasn’t hearing a joke; I was hearing
the sound of panic. Everyone is petrified of Alzheimer’s, to
the point of not wanting to contemplate it. And rightly so.
It is existentially—and uniquely—horrifying. “I have lost
myself,” the first patient, Auguste Deter, told Dr. Alois
Alzheimer in 1901. And that’s exactly what happens. Over
many years, this disease imperceptibly, insidiously attacks
an otherwise healthy human being, eating away at normal
brain function by ripping out neurons and synapses one by
one. It eliminates our understanding of the world around
us, the recognition of the
people we love, and ulti-
mately our basic sense of
who we are. We lose our-
selves.
Why would anyone will-
ingly think about this for any
sustained period? Why would
anyone read an entire book
about it? It had better be a
darn good book.
The British neurologist Joseph
Jebelli is up to the challenge.
With “In Pursuit of Memory,” he
has written an elegant, thorough,
compelling and touchingly personal
biography of the disease.
He begins with his family story. When Mr. Jebelli was
12, his grandfather Abbas developed Alzheimer’s. “It
started with inexplicable walks,” Mr. Jebelli recalls. Within
a decade, “like a candle burning itself out, his mind faded
and vanished.” Young Joseph’s tender experiences with his
grandfather’s decay, and his bafflement at the “sheer
indiscriminateness” of the disease, planted a seed of
curiosity that he later pursued as a neuroscientist.
Mr. Jebelli then takes us back a century to Dr.
Alzheimer in Frankfurt. He’s not the first writer to do this,
but he does it well. Through Alois Alzheimer’s experience
with Auguste Deter we are introduced to the disease’s
malicious hallmark—the “host of killer proteins” now
known as plaques and tangles. After Frau Deter died, in
1906, Alzheimer examined her brain with a microscope
and discovered a “perplexing omen.” “Peppered through-
out the brain were dark particles of an unknown sub-
stance,” Mr. Jebelli writes, as well as “variegated tangles”
of another foreign material. We absorb Dr. Alzheimer’s
confusion and curiosity about the nature of these intrud-
ers. And thus we are launched into a 100-year journey of
turbulent research, evolving theories, failed therapy
attempts and occasionally fruitful insights.
Between 2000 and 2012, nearly 100% of
therapies for Alzheimer’s disease ended in
failure. Much work remains to be done.
Mr. Jebelli elegantly surveys past landmarks in our
understanding of the disease, explores its genetic link-
ages and navigates among the ever-evolving theories of
its cause. Historically, some researchers have emphasized
the beta-amyloid plaques sandwiched between neurons;
others the “tangled” microtubules inside neurons. Still
other researchers see Alzheimer’s as a diabetes-like
deficiency in glucose processing. Recently, inflammation
and interactions with our microbiome—the ecosystem of
microbes living on and in our bodies—have attracted
serious attention.
If this sounds like a lot of science for the lay reader, it
is. But Mr. Jebelli smooths it out into a pleasant journey.
We get to know the human beings (and the motivations)
behind the science as much as we do the biology itself,
and Mr. Jebelli ranges from the U.K. to Colombia, Iceland
and India to profile researchers and their subjects. By the
end of the book, I was wondering if there is any esoteric
sub-sub-detail in neuroscience that Mr. Jebelli couldn’t
compellingly humanize.
At its heart, “In Pursuit of Memory” is about the virtue
of human curiosity. We are awfully good at accumulating
data, shaping it into an edifice of knowledge, and sharing
it in networks with one another. We excel at finding solu-
tions to last year’s problem and then passing the solutions
on to future learners so that they won’t have to start from
scratch. Human knowledge impressively builds on itself, as
if it were a never-ending skyscraper being constructed
into the future. “Every finding has scores of older, closely
related findings trailing behind, each having been dis-
proved, amending the scientific narrative,” Mr. Jebelli
writes. “Science orbits the truth; it doesn’t live there.”
“In Pursuit of Memory” demonstrates how relentless
research and stumbling through flawed theories has led
to a slow but sure buildup of understanding of
Alzheimer’s. Nearly every year since 1901, researchers
have made strides.
It also starkly reminds us that we’re not nearly done
and that, in the meantime, the situation has become dire.
The baby boomers are now drifting into the most risk-
prone years. Alzheimer’s has become the fourth-largest
killer in the U.S.—and the only one of those four still on
the incline. (As Mr. Jebelli notes, it is No. 1 in the U.K.).
Alzheimer’s care costs more than $200 billion a year in
the U.S. alone. It is a 21st-century scourge. And yet we
have not one single drug that can slow it down by even
one day. Tested Alzheimer’s therapies between 2000 and
2012 had a 99.6% failure rate, while the failure of cancer
drugs in that same period was 81%.
“It’s time to wake up,” writes Mr. Jebelli. Hear, hear.
And that is why you should read this book. People you
love will inevitably succumb to this horrible disease. Each
of us ignores Alzheimer’s at our peril. Only our powerful
collective will can stop Alzheimer’s. No one wants to think
about it. But we must.
Mr. Shenk is the author of “The Forgetting,” a senior
adviser to the Cure Alzheimer’s Fund and the creator of
the Living With Alzheimer’s Film Project.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A18 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Roy Moore Mess Military Service Really Is a Special Sacrifice

A
famous country song aptly summed up spite the blow to its Senate majority. Democrats Regarding Michael Brough’s forces in the most God-awful places on
where the Republicans are with Senate and the media will make Mr. Moore the running “Thanks For Your Service, Too” (op-ed, earth and keep us free and safe.
Nov. 10): I was medevaced from Viet- CAPT. J.V. FITZSIMMONS, USMC (RET.)
candidate Roy Moore in Alabama: mate of every Republican in 2018.
nam in 1970, a Ranger-qualified Recon- Hickory, N.C.
You’ve got to know when to Alabama’s Republican vot- naissance Marine with 42 long-range
fold ’em. Without a new ers are in a tough spot, and recon patrols, to be greeted by sancti- I’m a Navy and police veteran. The
There is no doubt a sense in ideally they’d at least get the monious, egoistic protesters and col- armed forces and law enforcement are
which Mr. Moore deserves the
candidate, the GOP chance to choose between a lege kids who taunted and spat on us. armed because they are required to go
opportunity to challenge accu- would be better off prominent write-in candidate I became a teacher and coach in harm’s way, facing bad guys who
sations against him for acts al-
leged to have happened more
losing the Senate seat. from their party or opt for
sending a message by voting
though disabled. As proud as I am to
help my high-school kids, there’s no
want to kill them. Caring for the home-
less, while a noble service, isn’t life-
than 30 years ago. Though too for the Democrat. For 25 years comparison with what American mili- threatening. All service isn’t the same.
many women were too easily Democrats and feminists eu- tary personnel do every day in some of JOHN D. COWAN
ignored in the past, we do not want to live in phemized and apologized for Bill Clinton, start- the armpits of the world. The people Columbus, Ohio
who face 24/365 danger to keep us
a country or political culture in which every ac- ing with Gennifer Flowers before he was Presi-
safe and free deserve every bit of rec- I appreciate Mr. Brough’s inclusive
cusation of sexual misconduct is automatically dent. Republicans can show their standards are ognition and thanks we can give them. perspective on serving the nation. I
accepted as true. Accusers can be liars too. better. My service taught me a special type of was a poll worker this year in my
But Mr. Moore isn’t in a courtroom today. There is one other obvious loser in this deba- humility and pride. I found out that all township and was touched by the kind
He’s in the political arena in which a candidate cle: Former White House aide Steve Bannon. men are equal when being shot at. remarks of fellow citizens who thanked
has to maintain a minimal level of public credi- Some have argued that the Bannon insurgency It isn’t that other people don’t de- us for our service to democracy.
bility to survive. And his political situation has against the Republican “establishment” is in the serve recognition and praise for their AAMIR A. REHMAN
moved well beyond a more familiar she said/he mode of earlier party challenges led by Ronald contributions to our society, but that a Princeton Junction, N.J.
said predicament. Reagan or Newt Gingrich. This one isn’t close. few of us, those in the military, for
Several women have made detailed accusa- The populism of Reagan and Mr. Gingrich was whatever reason, lay their lives on the Mr. Brough elides the service mili-
tions of sexual misconduct against Mr. Moore, always about building the conservative move- line with a very high probability of tary veterans who served during the
loss of life and limb, while those who draft era (1940-73) experienced. The
and multiple people now say he was known for ment into a majority that could govern and don’t enlist are safe and sound. draftee, or draft-motivated volunteer,
trolling shopping malls for young girls while in change the country. I find Mr. Brough’s remarks de- had to give up a minimum of two years
his 30s. Mr. Moore’s public defenses have also The Bannonites have given no evidence or meaning, especially on a day set aside of his life and conform to a regimented
been less than convincing, not least that he argument that they are aiming that high. They to honor living veterans. They smack military lifestyle, in service to the na-
doesn’t know his latest accuser, though he want to defeat the existing majority—a conser- of the continuing campaign to destroy tion, commonly far from home and
signed her yearbook. vative majority by any historical standard— the culture, institutions and mores of family. All this, while their contempo-
Mr. Moore’s credibility has fallen below the mainly to show that they can depose Majority the U.S. that has been going full-bore raries, who didn’t serve, pursued and
level of survivability. Some of Mr. Moore’s pre- Leader Mitch McConnell. since 2008. Honor all Americans who advanced their lives and careers. I sus-
sumed colleagues in the Senate have said they They have no discernible governing agenda contribute daily to what makes Amer- pect these veterans feel they have
believe the women and that the judge should beyond trade protectionism and slashing immi- ica great, but reserve special thanks earned the holiday of Veterans Day.
and admiration for the 19- and 20- GARY L. SMITH, USN (RET.)
withdraw. Colorado’s Cory Gardner has sug- gration, and those often appear to be convic-
year-olds who face the most evil of Englewood, Fla.
gested that even if Mr. Moore wins, the Senate tions of convenience. It is hardly a surprise
should vote to expel him from the body. It’s a therefore that instead of recruiting talented
rare candidate who achieves that degree of po- candidates, Mr. Bannon is collecting cranks and
litical abandonment. outliers like Roy Moore who, demonstrably, will
The sensible move would be for Mr. Moore take the GOP into the minority.
Wind, Solar Are Shedding Subsidies. Oil?
to step away from the campaign and allow Ala- The lesson Republican voters should draw Regarding your energy states are
bama’s Republicans to put forth a more credible from the Moore mess is that their future lies editorial “Big simply doing what
candidate to run as a write-in against Democrat with nominating candidates who want to Wind and Tax Re- Republicans have
Doug Jones. Most likely, Mr. Moore won’t do achieve substantive policy goals, such as a seri- form” (Nov. 11): consistently done
that. He made his reputation as an Alabama ous reform of the tax code or confirming origi- Wind and solar for their oil and
power, unlike vir- gas states—cave
state judge by openly defying valid court or- nalist judges, rather than pouring their emo-
tually every other on free-market
GETTY IMAGES/ISTOCKPHOTO

ders, which twice cost him his court seat. tions into a political fringe that will always find energy sector, principles to sup-
In the event that Mr. Moore refuses to drop a way to lose. agreed to a port energy subsi-
out in the next day or so, President Trump Raging against the establishment for the phase-out sched- dies in their home
might have more sway if he suggests that he sake of raging is an agenda for losers, and it will ule for their own states.
leave the race. If Mr. Trump won’t do that, then cost conservatives the votes in Congress they tax incentives in a The big differ-
the GOP will be better off if Mr. Moore loses, de- need to achieve conservative goals. bipartisan 2015 ence this time is
compromise. wind energy’s tax
Rather than re- loophole will be
Ruling Out the ABA on Judges ward such fiscal leadership, the House
proposal targets the sector with puni-
gone after 40 years since Republicans
reformed its taxes in 2015 with a five-

I
f Republicans are serious about getting
President Trump’s judicial nominees con-
firmed, they will have to rid themselves of
the fiction of a politically neutral American Bar
Association. The outfit’s recent antics provide
ample reason to remove it from Senate vetting.
The ABA’s Standing Committee on the Fed-
eral Judiciary last week informed the Judiciary
Committee that Brett Talley is “not qualified”
to serve as a federal judge. This is the fourth
“not qualified” rating the ABA has slapped on
Trump nominees, including Leonard Steven
Grasz for the Eighth Circuit Court of Appeals.
Mr. Grasz’s “not qualified” rating rests on a
misrepresentation of the former Nebraska chief
deputy attorney general’s views on judicial
precedent. Mr. Grasz once argued in a 1999 arti-
cle that lower courts shouldn’t stretch Supreme
Court rulings into broader rights, but the ABA
contorts this to suggest Mr. Grasz would ignore
Roe v. Wade. Mr. Grasz explicitly wrote in the
same article that “lower federal courts are
obliged to follow clear legal precedent regard-
less of whether it may seem unwise or even
morally repugnant to do so.”
As for Mr. Talley, nominated for the district
court in Alabama, the ABA says he lacks the
“requisite trial experience,” having never tried
a case. This ignores that the 36-year-old has
clerked for a federal district judge and a federal
appellate judge, has worked at the whiteshoe
Gibson Dunn & Crutcher firm, and served as the
Deputy Solicitor General of Alabama.
Many nominees have been younger than Mr.
Talley, and the ABA called Barack Obama nomi-
nee Goodwin Liu “well-qualified” despite no ex-
perience as a trial judge. The ABA also called
Elena Kagan “well qualified” for the Supreme
Court, as indeed she was, despite her lack of
trial experience. But since the ABA found noth-
ing amiss with Mr. Talley’s “integrity” or “tem-
perament,” it settled on a concern with “requi-
site” experience.
In an August letter to Judiciary Chairman
Chuck Grassley, Senator Jeff Flake and four col-
leagues outlined the ABA’s long history of polit-
ical liberal activism, and noted their concerns
with the Senate outsourcing advice and consent
to “unaccountable outside groups.” They also
pointed out how useless ABA ratings are, given
the number of judges who have been judged
“not qualified” but were confirmed and have
had distinguished bench careers.
ABA Standing Committee Chair Pamela Bres-
nahan wants Senate Judiciary to invite the ABA
to more hearings. Mr. Grassley should respond
by informing the ABA that hearings on judicial
nominees will no longer have to wait for com-
pleted ABA evaluations.
Mr. Trump followed George W. Bush and
scrapped the practice of letting the ABA pre-
screen nominees for the White House. Yet the
Senate continues to give the lawyers’ guild too
much sway. There are more than enough judi-
cial watchdogs on the left and right to inform
the Senate.
tive provisions that retroactively
change the criteria wind and solar
projects must meet to qualify for tax
credits last year. These provisions, the
only retroactive measures in the 429-
page bill, are so destructive that their
introduction sent an immediate shiver
through the marketplace, placing tens
of billions of dollars in investment and
thousands of wind-energy jobs at risk.
Retroactive changes to rules that in-
vestors relied on in financial decisions
are inherently unfair and have no
place in tax reform.
You also ignore the fundamental
hypocrisy of the energy provisions in
the House bill, which target the dwin-
dling temporary incentives for renew-
able energy instead of re-examining
the array of older, permanent incen-
tives for fossil fuels, some of which
have been on the books for more than
a century. Also spared, and in fact en-
riched, are incentives for nuclear en-
ergy that go back more than 50 years.
With nearly $100 billion in invest-
ment over the past two years, and a
strong record of job creation, espe-
cially in rural areas where investment
and jobs may otherwise be hard to
come by, renewable energy is one of
the nation’s most important economic
drivers. It deserves a fair shake from
House legislators and editorial writers.
GREGORY WETSTONE
President and CEO
American Council
on Renewable Energy
year phase-out of the industry’s pri-
mary tax preference.
So what’s keeping the party in con-
trol now from figuring out how to re-
form taxes on oil and gas by ending
tax provisions costing more than
wind’s carve-out at $4.2 billion a
year, according to the Congressional
Budget Office?
MARK RICHARDSON
Hutchinson, Kan.
Wind energy comes at the expense
of taxpayers and birds, including pro-
tected birds. Audubon groups need to
be more active in countering the wind
lobby. An alliance between environ-
mentalists and free-marketers could
end the subsidized bird holocaust.
IAN MCCLINTIC
Houston
Think of the Harm Taxing
Tuition Wavers Will Do
In arguing to tax tuition waivers,
you claim that they “let colleges em-
ploy teaching assistants as indentured
servants” and that colleges should pay
teaching assistants “a better wage”
(“The College Tax-Reform Tantrum,”
Review & Outlook, Nov. 9). The num-
bers simply don’t support this state-
ment and, indeed, argue for retaining
current tax benefits. At my institution,
like other research-intensive universi-
ties, the total compensation for gradu-

Venezuela Goes Bust Washington ate assistants is $71,000, including a

tuition waiver of roughly $40,000 and

M
Iowa Sen. Chuck Grassley and his a stipend of $31,000. Taxing these tu-
ilton Friedman once joked that if you As of Tuesday evening, the Investment Republican colleagues in other wind- ition waivers will consume a large
put the government in charge of the Swaps and Derivatives Association still had not fraction of much-needed stipend sup-
Sahara Desert in five years there declared Venezuela in default. That matters be- port. As these fellowships often sup-
would be a shortage of sand. cause this will trigger the in- SALT Helps States That port students in fields that are en-
He could have been talking Another lesson in the surance obligations inherent Put In More Than They Get gines of economic growth—computer
science, biotechnology, mathematics—
about Venezuela and its oil price of lending to a in the credit default swaps.
Regarding “Tax Reform Momen- taxing tuition waivers will serve only
wealth. But it is no joke. But S&P Global Ratings de- tum” (Nov. 10), I can’t help but notice to diminish the lives of individuals
On Monday Caracas missed socialist regime. clared the country in default the umpteenth time the editorial and the growth society at large.
interest payments due on two Monday. On Tuesday morning board has bemoaned the “subsidies” PROF. NEIL SHUBIN
government bonds and one the Luxembourg Stock Ex- given to high-tax states via the state The University of Chicago
bond issued by the state-owned oil monopoly change issued a suspension notice for the bonds and local tax (SALT) deduction. As a Chicago
known by its Spanish initials PdVSA. Venezuela with missed payments. longtime fiscal conservative, small-
owed creditors $280 million, which it couldn’t President Nicolás Maduro has formed a com- government Journal reader living in
manage even after a 30-day grace period. mission to restructure up to $150 billion of the New York, I look forward to the future Pepper ...
Venezuela is broke, which takes some doing. debt and put Vice President Tareck El Aissami— analysis of state-by-state subsidies
and the tens of billions of dollars
And Salt
For much of the second half of the 20th century, who is under U.S. sanctions for drug traffick-
flowing out of high-tax states and sub- THE WALL STREET JOURNAL
a gusher of oil exports made dollars abundant ing—in charge. Mr. El Aissami called a meeting
sidizing what often seem like depen-
in Venezuela and the country imported the fin- of creditors on Monday in Caracas, which most dent red states. It’s quite the paradox.
est of everything. There were rough patches in bondholders did not attend. Press reports said The SALT deduction isn’t great as a
the 1980s and 1990s, but by 2001 Venezuela was Mr. El Aissami delivered a monologue on Vene- matter of policy, but it doesn’t exist in
the richest country in South America. zuela’s intention to pay and took no questions. a void. Keeping tax dollars a little
Then in 2005 the socialist Hugo Chávez de- He argued that Trump Administration sanc- closer to their constituents actually
clared that the central bank had “excessive re- tions make it difficult for the dictatorship to ar- sounds conservative to me.
serves.” He mandated that the executive take range refinancing. M. FANELLI
the excess from the bank without compensa- The real problem is that restructuring as- Brooklyn, N.Y.
tion. Today the central bank has at best $1 bil- sumes the country can grow again. That’s
lion in reserves. nearly impossible without a change in policy Letters intended for publication should
Falling oil prices are partly to blame, but the that will free the economy. be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
main problem is that chavismo has strangled If Caracas doesn’t find a way to settle with or emailed to wsj.ltrs@wsj.com. Please
entrepreneurship. Faced with expropriation, bondholders, they will soon ask authorities to include your city and state. All letters
hyperinflation, price controls and rampant cor- seize Venezuelan assets such as oil shipments are subject to editing, and unpublished
ruption, human and monetary capital has fled at sea and Citgo facilities in the U.S. Such are letters can be neither acknowledged nor “But most of all I’d like
returned.
Venezuela. the wages socialism. to thank the zeitgeist.”
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THE WALL STREET JOURNAL.
The Democrats’ Kansas Distraction
By Ron Estes
W
hen House Republi-
cans unveiled their
plan for tax reform
this month, Democrats
offered a curious re-
sponse. Rather than give their own
proposal, they held a mock hearing—
a show trial, really—on Kansas’ 2012
tax cuts. Democrats see my state as
proof that supply-side economics
doesn’t work and that the GOP’s na-
tional tax reform will lead to budget
cuts and enormous deficits.
But the comparison is less a cau-
tionary tale than a tall tale. I was
Kansas’ state treasurer from 2011-17,
and no one watched the dollars flow-
ing in and out more closely than I
did. Consider a few facts:
First, the 2012 tax cuts came dur-
ing the same year that federal stimu-
lus funds ended. That alone resulted
in a 12.5% drop in revenue. In the
spring of 2010, then-Gov. Mark Par-
kinson, a Democrat, had worked with
They’re trying to make my
state’s 2012 tax cuts into a
cautionary tale, but there’s
no comparison.
the Legislature to pass a 2011 budget
that included $527.6 million in stimu-
lus funds. Democrats knew this
money was temporary but behaved as
if it were permanent. The effect was
to exaggerate the “lost revenue” from
the tax cut.
Second, the shortfall was made
worse because state lawmakers re-
How Big Pharma Sandbags Generic Competition
By Michael A. Carrier
D
rug companies are always fig-
uring out creative ways to sus-
tain high prices on brand-
name medications. In the latest twist,
Allergan this fall transferred the pat-
ents covering its eyedrop Restasis to
the sovereign St. Regis Mohawk
Tribe, admitting outright that its goal
was to prevent the patents from be-
ing overturned.
Whatever the industry’s excuses,
shenanigans like these cannot be jus-
tified as aiding innovation. Instead
they are anticompetitive abuses that
lead to higher prices for millions of
patients in need of vital drugs. What
can Congress do? Four things:
• Help generic manufacturers get
the drug samples they need. Before a
generic reaches the market, it must be
shown to be equivalent to the brand-
name drug. But proving this requires
samples that pharmaceutical compa-
nies are often unwilling to provide.
This ruse was employed by the in-
famous “Pharma Bro,” Martin Shkreli.
His company, Turing Pharmaceuticals,
set up a restricted distribution system
for its drug Daraprim that required
orders to be approved directly by the
company. If someone “calls and asks
for 50 bottles of Daraprim, they would
have to come to me for approval,” a
company official told the blog Phar-
malot in 2015. If the request was from
a generic maker, “most likely I would
block that purchase.”
A 2014 report sponsored by the
Generic Pharmaceutical Association
If Roy Moore Wins, the Senate Is Stuck With Him
By Brian C. Kalt
R
ep. Morris Udall, on losing the
1976 presidential nomination to
Jimmy Carter, quipped: “The
voters have spoken—the bastards.”
That applies to Alabama’s Dec. 12 U.S.
Senate election. The voters will have
their say, and if they elect Roy Moore
despite his alleged sexual misconduct,
the Constitution requires the Senate
to seat him, and expelling him would
violate congressional precedent.
Senate Republicans have reportedly
discussed refusing to seat Mr. Moore,
but legally they cannot. In 1967 the
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jected the “pay-fors” proposed by Re-
publican Gov. Sam Brownback. The
governor’s original tax plan would
have closed many loopholes. But the
Legislature wanted to keep the tax
credits and deductions and left them
in the final bill. Such carve-outs
should be viewed as spending
through the tax code, as Martin Feld-
stein, a top adviser to President Rea-
gan, has argued on these pages.
Third, the Legislature then contin-
ued to increase spending by 3% a
year. Between the 2010 and 2018
budget years, during this era of sup-
posedly devastating cuts caused by
right-wing tax policy, lawmakers
raised expenditures from $5.3 billion
to $6.6 billion. Democrats who deride
the Kansas “experiment” conve-
niently ignore how spending contrib-
uted to the fiscal problem.
Fourth, after 2012 Kansas faced
economic headwinds that decreased
revenue. As commodity prices sank,
estimated that this kind of gaming
delayed the approval of 40 generics,
at an annual cost to the American
health-care system of $5.4 billion.
Congress can address the problem
by passing the bipartisan Creates
Act. This narrowly targeted bill
would require brand-name drug com-
panies to provide generic manufac-
turers with enough samples to meet
the testing requirements. If the
brand-name firm refused, the generic
company could sue.
From denying samples to
pushing ‘citizen petitions,’
drug companies are clever.
But Congress can help.
• Make clear that drug-distribution
programs cannot be patented. When
a risky drug needs to be administered
in a closely monitored setting, the
FDA often requires the manufacturer
to create a program called Risk Eval-
uation and Mitigation Strategies, or
REMS. Some brand-name companies
are patenting their REMS. This puts
generic manufacturers in a tough
spot, since FDA regulations require
the generic label to mirror the brand
label, which includes the REMS.
Case law and the relevant statute
suggest that REMS should not be pat-
entable. But Congress could help ge-
nerics stuck between a rock (“Don’t
alter the label!”) and a hard place
House excluded Rep.-elect Adam
Clayton Powell Jr. of New York for
corruption. The U.S. Supreme Court,
though traditionally reluctant to in-
tervene in Congress’s internal house-
keeping, declared that the House had
crossed a line. The Constitution
makes the House and Senate the
judges of the elections and qualifica-
tions of their members but does not
give them the power to create new
qualifications.
Nobody doubts that Mr. Moore
meets the constitutional qualifications
for the Senate seat: He is at least 30, a
resident of Alabama, and a U.S. citizen
Robert Thomson
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OPINION
ALAMY STOCK PHOTO
the average net farm income in Kan-
sas collapsed, from $159,352 in 2012
to $4,568 in 2015. Aviation compa-
nies—Kansas is home to Spirit Aero-
Systems, Cessna and Bombardier
Learjet—struggled in the economic
downturn caused by the Great Reces-
sion. Meanwhile, plunging oil and gas
prices hurt drillers in central and
western Kansas. For the state trea-
sury, this was a perfect storm.
The truth is that Kansas’ tax cuts
simply aren’t comparable with the
GOP’s pro-growth national plan be-
cause they aren’t structured the same
way. The Kansas bill did nothing for
large corporations. Instead it focused
on reducing taxes for small businesses
and LLCs (i.e., pass-throughs). As a re-
sult, Kansas created record numbers
of small businesses. But critics say the
lower rate increased tax avoidance by
providing an incentive to push money
into pass-throughs.
The House GOP plan doesn’t have
(“Don’t infringe a patent!”). Simple
statutory adjustments could make
clear that REMS are not patentable.
• Stop brand names from paying
off first-filing generics. As a way of
encouraging generic manufacturers
to challenge invalid brand-name pat-
ents, the Hatch-Waxman Act of 1984
gives the first generics to file such a
challenge a valuable 180-day period
of market exclusivity. Other generics
cannot enter the market until the
first-filers do.
Brands have twisted this provision
beyond recognition by paying off the
first-filers. To protect its sleep-disor-
der drug Provigil, Cephalon paid four
generic manufacturers (all of which
filed on the same day) $300 million
to delay their entry into the market
by six years. A 2010 report by the
Federal Trade Commission estimated
that “pay-for-delay agreements” cost
consumers $3.5 billion a year.
Such arrangements have attracted
serious scrutiny. The company that
later bought Cephalon agreed to pay
a $1.2 billion settlement in 2015 to
resolve a challenge to the deal. The
Supreme Court warned four years
ago that such agreements could vio-
late antitrust law. Yet that hasn’t
stopped them, and drug companies
have only gotten cleverer.
Lawmakers could enact a simple
fix, like the Improving Access to Af-
fordable Prescription Drugs Act. The
bill would open that 180-day period
to parties other than the first-filer,
such as whatever company wins liti-
gation showing the patent invalid.
for at least nine years. The Constitu-
tion does not disqualify even convicted
criminals from Congress. Instead, it
leaves it to the voters to weigh candi-
dates’ characters and abilities. If Ala-
bamans conclude that Mr. Moore is a
It would be legally bound
to seat him, and there’s no
precedent for expulsion.
monster unworthy of the office, they
will not elect him. But if they conclude
that he is innocent or if they decide
that, regardless of his prior conduct,
he is better than the alternative, the
Senate must seat him.
While exclusion is not an option,
expulsion is. The Constitution em-
powers the Senate to throw out any
member it deems sufficiently con-
temptible, with no limits on the basis
for such an action. But that requires
a two-thirds majority—a high bar.
Presuming Mr. Moore would not vote
in his own case, that means at least
18 of the other 51 Republicans would
need to vote against him.
Colorado Sen. Cory Gardner,
chairman of the National Republican
Senatorial Committee, has already
declared that if Mr. Moore is elected
he should be expelled. Perhaps a
Moore victory would cause a cas-
cade of such sentiment among Re-
publican senators. But that would
overturn firmly established congres-
sional precedent that expulsion is
reserved for misconduct in office,
Wednesday, November 15, 2017 | A19
this problem because it would lower
tax rates proportionally on both small
businesses (to 25%) and corporations
(to 20%). This would also bring Amer-
ica’s corporate tax in line with the
rest of the world. Today’s high corpo-
rate rate of 35% is undoubtedly hold-
ing back growth. Cutting the rate to
boost the economy is a core feature of
the GOP’s national proposal, but that
wasn’t a part of the Kansas plan.
So why do Democrats keep bring-
ing up Kansas? Because the truth
gets in the way of their efforts to kill
tax reform. The last time Washington
enacted a serious plan like the House
proposal was under President Rea-
gan, and it ushered in one of the larg-
est booms in the nation’s history.
Economic growth averaged 3.5% from
1981-88. Republicans want to repli-
cate that success for all Americans.
The House estimates that under its
plan the typical family of four earn-
ing $59,000 would save about $1,182
a year on their tax bill.
In obsessing about Kansas, Demo-
crats ignore the obvious economic
lessons from the other 49 states. Fed-
eral data clearly show that Americans
are leaving high-tax states like Con-
necticut and moving to low-tax ones
like Texas. These are the comparisons
that are truly relevant.
In a September CNN poll, 68% of
Americans said the tax code needs ei-
ther a “complete overhaul” or “major
changes.” Republicans would be wise
to take heed and press ahead. Demo-
crats, with their Kansas show trial,
have demonstrated that they are
more interested in phony compari-
sons than in offering real solutions.
Mr. Estes, a Republican, is a U.S.
representative from Kansas.
• Reform the FDA’s “citizen peti-
tion” process. Petitions are supposed
to let Americans bring concerns
about drug safety and effectiveness
to regulators’ attention. But the pro-
cess is being abused.
From 2011-15, the FDA received
roughly 125 “citizen petitions” asking
it to take a specific action regarding
a pending generic application. Almost
all of these were filed by brand-name
drug companies. According to my re-
search, the FDA denied 92% of them,
and 98% of those filed immediately
before the expiration of a patent or
exclusivity period. In a 2015 report,
the FDA’s acting commissioner wrote
that the agency was concerned the
law “is not discouraging the submis-
sion of petitions that are intended
primarily to delay the approval of
competing drug products.”
Congress could increase transpar-
ency by requiring the FDA to include
more information in its annual re-
port—such as a full list of these peti-
tions and any delay in generic ap-
provals that they caused. Lawmakers
could also loosen requirements so as
to give the FDA broader authority to
dispose of petitions summarily.
High drug prices directly harm
Americans’ health. There is no excuse
when they are the result of blatantly
anticompetitive behavior. With these
four steps, Congress could bring
competition back to the market, with
tangible benefits for millions.
Mr. Carrier is a professor at Rut-
gers Law School.
not for actions the voters knew
about before the election.
The Supreme Court recognized
this limitation in Powell’s case, quot-
ing a House speaker who declared it
“so frequently decided” that it was
“no longer a matter of dispute.” The
Senate debated the issue at length in
1893, when it dropped an expulsion
case on the assumption that it had no
jurisdiction over old misconduct.
The Senate can disregard such prec-
edents when it sees fit, and surely
there is no shortage of senators willing
to speak out against unlawful sexual
conduct with minors. But senators are
surely also aware that many of their
numbers have been accused of all man-
ner of wrongdoing—whether sexual, fi-
nancial or both. Members from both
parties will be wary of setting a prece-
dent under which their entire pasts are
subject to scrutiny and 66 votes are
enough to end their careers.
Senate Republicans can send a
strong message to Alabama voters
that Mr. Moore is unwelcome in the
Capitol. Perhaps this will lead Alabam-
ans to send his opponent to Washing-
ton instead. But flouting the establish-
ment is Roy Moore’s brand, and Mr.
Moore’s base may call the Senate’s
bluff. If they do, the Senate will have
to live with the voters’ choice, or else
open up a can of worms it has seen fit
to keep closed for over 220 years.
Mr. Kalt is a law professor at
Michigan State University and author
of “Constitutional Cliffhangers: A Le-
gal Guide for Presidents and Their
Enemies” (2012).
Yes, Nafta
Is Good for
My Children
By Patrick J. Ottensmeyer
T
his week American, Canadian
and Mexican negotiators will
meet in Mexico City for the
fifth round of talks to modernize
the North American Free Trade
Agreement. During the previous
round of negotiations in Washing-
ton, I had the opportunity to meet
with U.S. Trade Representative Rob-
ert Lighthizer, who leads the U.S.
delegation. I wanted to explain how
important Nafta is to my company
and the communities we serve.
Near the end of our meeting, Mr.
Lighthizer asked me a more per-
sonal question: “How is Nafta good
for your children and grandchil-
dren?” Afterward, I spent a good
deal of time thinking about this. I
also took the time to consider how
this trade deal will affect America’s
place in the world for decades to
come. I think I can now give a de-
finitive answer to Mr. Lighthizer’s
question.
In answer to Robert
Lighthizer’s thought-
provoking question, it’s
good for the country too.
First, what does Nafta mean to
contemporary society? U.S. exports
to Canada and Mexico support 14
million American jobs, including
tens of thousands in every state, ac-
cording to the U.S. Chamber of
Commerce. Each day, more than
$3.3 billion is traded among the
U.S., Canada and Mexico. That’s $1.2
trillion a year. In fact, about half of
all Canadian and Mexican imports
are made in the U.S.
Nafta is especially beneficial for
America’s farmers and ranchers.
Agricultural exports to Canada and
Mexico—vital to the health and
strength of rural America’s econ-
omy—have quadrupled to $38 bil-
lion in 2016 from $8.9 billion in
1993, according to the North Ameri-
can Economic Alliance. Canada and
Mexico are also the top two mar-
kets in the world for U.S.-made
manufactured goods, with pur-
chases of nearly $500 billion last
year, a sum that tops the next 10
largest markets combined.
America’s North American neigh-
bors are also booming markets for
U.S. services exports. In 2016 the
U.S. recorded a trade surplus of $11.9
billion with its Nafta partners when
manufactured goods and services are
combined, data from the Chamber of
Commerce show. Among the biggest
beneficiaries of this commerce are
America’s small and medium-size
businesses. Some 125,000 of them
sell their goods and services to Mex-
ico and Canada.
That’s what the world looks like
with Nafta. What if it went away?
Exports to Mexico and Canada
could face tariffs and taxes, mean-
ing that over time American ex-
ports would be replaced by prod-
ucts from other markets. Mexican
purchases of corn and other agri-
cultural commodities from the U.S.
would almost certainly shift to
places like Argentina, Brazil and the
European Union. Given its concerns
over Nafta, Mexico is actively pur-
suing new free-trade agreements to
facilitate this. A recent study by Im-
pact Econ estimates that more than
a million U.S. jobs could be lost if
Nafta ends.
Congress is trying to overhaul
the tax code to boost the economy
and help wages grow. But if the
White House pulls out of Nafta, it
could lead to the reimposition of
higher tariffs on North American-
produced goods. This would effec-
tively be a big tax increase on all
U.S. production.
I recently attended a business
summit featuring high-profile Mexi-
can business and government lead-
ers, including President Enrique
Peña Nieto. Chinese and Russian
government officials and business
leaders participated too, hoping to
strengthen trade relations with
Mexico—and put at risk the $600
billion of goods that Mexico pur-
chases from the U.S. It was a chill-
ing reminder that Nafta’s collapse
would push Mexico, and perhaps
Canada, to look elsewhere to stabi-
lize their economies.
As for Mr. Lighthizer’s thought-
provoking question: I’m confident
my three daughters and future
grandchildren are better off be-
cause of Nafta. And a modernized
agreement could help more. I be-
lieve the ambassador and President
Trump can achieve that objective
for all of us, and I want to help
them do so.
Mr. Ottensmeyer is CEO of Kan-
sas City Southern, a railroad com-
pany with operations in the U.S.,
Mexico and Panama.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A20 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2578.87 g 0.23% S&P FIN g 0.06%
Junk-Bond Selloff Hits Telecoms
Rout is confined to
sector for now, but it
could spread if fund
Prices of high-yield bonds have softened in recent days, with declines
in the telecommunications sector reflecting a reduced outlook for
outflows get worse some key firms. While selling so far has mostly been contained,
some investors worry that high-yield bonds remain vulnerable
An autumn pullback in the after a sharp rally over the past year.
junk-bond market is centered
in the telecommunications sec-
tor, raising concerns that
weakness in the group could
By Jon Sindreu,
Christopher Whittall
and Sam Goldfarb
spread if withdrawals from
mutual and exchange-traded
funds pick up momentum.
The bond selloff has hit
firms ranging from European
giant Altice NV to U.S. opera-
tor Frontier Communications
Corp., dragging down broader
indexes of high-yield bonds—
those deemed speculative by
credit-rating firms.
The selling so far has been
largely contained, easing fears
that the junk-bond retreat
could be the first crack in a fu-
rious 2017 market rally that
has taken major stock indexes
around the globe to records,
some investors said.
Yet telecom makes up a
meaningful chunk of high-yield
indexes and exchange-traded
funds and some analysts are
concerned that retail investors,
whose exposure to junk bonds
tends to come through passive
funds, may get spooked by the
selloff. In a worst-case sce-
nario, they could then dump
other riskier assets like stocks,
these analysts say.
“This stuff can become very
Nintendo
To Bring
Mario to
Big Screen
BY BEN FRITZ
AND TAKASHI MOCHIZUKI
Mario and Luigi are heading
to the big screen in one of the
highest-profile licensing deals
by a Hollywood studio in years.
Illumination Entertainment,
which makes animated films for
Comcast Corp.’s Universal Pic-
tures, is close to an agreement
with Nintendo Co. to make an
animated “Super Mario Bros.”
movie based on the 32-year-old
videogame series about a pair
of sibling plumbers who fight
evil turtles and mushrooms in a
fantasy kingdom, said people
with knowledge of the discus-
sions.
Nintendo’s marquee charac-
ters have long been tempting to
Hollywood, particularly now
that the business is driven by
globally popular franchise films
featuring well known brands
like Marvel superheroes, “Fast
& Furious” and Harry Potter.
The dozens of “Super Mario
Bros.” games and their spin offs
are widely believed to be the
best-selling videogame fran-
chise ever, having sold more
than 330 million units total, ac-
cording to Nintendo.
Other Hollywood studios
have sought the “Super Mario
Bros.” rights in the past, ac-
cording to people familiar with
the discussions.
Illumination, which made
“Despicable Me,” “Minions” and
“The Secret Life of Pets,” has
been talking to Nintendo for
more than a year about a
movie, according to the people
who know about the recent
talks.
The potential deal follows an
agreement Universal’s theme-
parks unit made with Nintendo
two years ago to build attrac-
tions based on Mario and other
characters.
A Nintendo spokesman de-
clined to comment, as did an Il-
lumination spokeswoman.
Universal finances and re-
leases films produced by Illumi-
nation, which it co-owns with
the animation company’s chief
executive, Chris Meledandri.
Nintendo hasn’t made deals
Please see MARIO page B2
TECHNOLOGY: PARIS IS COOL TO AIRBNB’S EMBRACE B4
* * * *
S&P IT g 0.16%
Bad Connection
2015 ’16
Credit spreads* on high-yield bonds have
risen this month, with increases centered
in lower-rated debt
5 percentage points
4 B-rated
3 B-rated
2 BB-rated
1 BB-rated
0 74
Aug. Sept. Oct.
*Yield premium over Libor, based on asset swap spreads †MSCI AC World Index
Sources: FactSet (stocks); Bank of America Merrill Lynch (credit risk, bonds); MarketAxess (bonds due 2025); Thomson Reuters Lipper (flows)
self-reinforcing,” said Anthony
Robertson, head of Strategic
Value Credit at Cheyne Capital.
“It can spiral out of control
quickly.”
As prices of telecom bonds
fell, their average yield in the
Bloomberg Barclays U.S. high-
yield index rose to 6.63% Mon-
GE’s Cap Falls Off in Stock’s Tumble
BY THOMAS GRYTA
A two-day tumble has
erased 13% from General Elec-
tric Co.’s share price, causing
the conglomerate to lose its
crown as the biggest U.S. in-
dustrial company as Wall
Street digests a turnaround
plan announced Monday.
GE’s new chief executive,
John Flannery, said Monday
the company would cut its div-
idend in half and shed multi-
ple divisions, and that it may
take years for a recovery. The
lack of a dramatic move, such
as a breakup or dropping a
major division, and the long
timeline aren’t sitting well
with investors who waited
four months for the plan.
“It will take a long time to
work through GE’s operations
toward eventually turning its
fortunes around,” said
Deutsche Bank analyst John
Inch. The dividend cut was
steeper than Wall Street ex-
pected, he said, which could ex-
acerbate the selloff “as retail in-
vestors who previously counted
on the GE dividend look else-
INSIDE
BIG TOY TIE-UP
WOULD BE
GAME-CHANGER
RETAIL, B7
INVESTORS PICK
THROUGH MALL
OPERATORS
PROPERTY REPORT, B8
THE WALL STREET JOURNAL.
DJ TRANS g 0.31% WSJ $ IDX g 0.40%
Frontier Communications’ 11% bonds
due 2025, daily prices, par value $100
$88
Dollar 86
84
Euro
82
Dollar 80
Euro 78
76
Nov. Oct. Nov.
day from 5.45% a month ear-
lier, according to Bloomberg
Barclays. The average yield of
the entire index climbed to
5.78% from 5.46%.
Telecom companies have
faced escalating challenges for
some time. Growth in the U.S.
wireless market has slowed
Workers in South Carolina. The conglomerate plans a turnaround.
where.” More than 40% of GE’s
common shares are owned by
retail investors, he said.
GE shares fell 5.9% to $17.90
Tuesday—after falling 7.2%
Monday—and are down 43%
for the year.
The decline has left GE with
a market value of $155.23 bil-
lion, while Boeing Co. shares
have enjoyed a 68% gain this
HEARD ON THE STREET | By Nathaniel Taplin
China Holds Key to Global Coal Industry
The U.S. is
coal country
again, thanks
to President
Donald
Trump.
But in the real coal coun-
try—the one that sucks up
half of global supply every
year—demand for the black
stuff is poised to deteriorate
sharply over the next year.
Investors hoping strong
global growth and favorable
U.S. policies will boost coal
prices and stocks should in-
stead focus on China.
Winter is usually China’s
peak coal season, but this
time around environmental
inspections, rebounding hy-
dropower, and slowing real-
estate development are to-
gether painting a dire
picture for demand.
Figures released Tuesday
showed Chinese power de-
mand in October increased
at the slowest rate since
mid-2016. Production of
nearly every other heavy in-
LIBOR 3M 1.419
Performance, total return Global stocks†
’17
Weekly net flows into high-yield funds,
four-week moving average
$2 billion
1 the most expensive iPhone
0 edge-to-edge display and facial
–1
–2
2017
and pricing pressure has
chipped away at the profits of
even the largest and most suc-
cessful companies, such as Ve-
rizon Communications Inc.
and AT&T Inc.
Shares of telecom compa-
nies in the S&P 500 have fallen
20% in 2017, while the broader
LUKE SHARRETT/BLOOMBERG NEWS
year, leaving GE behind as
Boeing’s market cap reached
$155.9 billion. A year ago, GE
was worth about $270 billion
and Boeing $92.6 billion.
Several investors said short
sellers were active in GE stock,
a strategy that is now cheaper
with the lower dividend.
Short sellers borrow a stock
and then sell it, betting its
dustrial product also slowed
as a weaker property market
and pollution crackdowns
start to bite.
Meanwhile, hydropower
output rose 17% as the ef-
fects of a nasty drought
faded. Coal power produc-
tion went negative for the
second month in a row, fall-
ing almost 3% on the year.
The medium-term outlook
is even worse. Drives to cut
capacity in electricity inten-
sive industries like alumi-
num and steel aren’t going
away, meaning another
structural step down in in-
dustrial power demand over
coming years is likely. Presi-
dent Xi Jinping’s emphasis
on a “better” life for Chinese
citizens means tougher envi-
ronmental enforcement is
here to stay.
Finally, a glut of cheap
natural gas in Asia means
that shutting down dirty
coal plants in China is more
affordable than in the past.
The one really bullish fac-
Wednesday, November 15, 2017 | B1
NIKKEI (Midday) 22246.07 g 0.60%
Global high-yield bonds
THE WALL STREET JOURNAL.
index has gained 15%. That
makes the telecom sector the
worst-performing of the S&P
500’s 11 groups.
Telecom companies with
junk-rated bonds are in an es-
pecially tough position. They
include the third- and fourth-
Please see YIELD page B2
Market Swap
Boeing and GE market
capitalization
$300 billion
250
200
150
100
50
0
2017
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
price will drop so it can be re-
purchased at a lower price and
returned to the lender. If a
stock pays a dividend, the short
seller doesn’t get that dividend
but must compensate the
lender for it. A lower dividend
generally reduces that cost.
One New York hedge-fund
manager said “everyone on
Please see GE page B2
Off the Grid
Chinese power output, change
from a year earlier
40%
20
0
–20
2014 2015 2016
Source: CEIC
THE WALL STREET JOURNAL.
tor for coal, ironically, is the
huge debt China’s benighted
coal firms are carrying. Chi-
nese regulators have a
strong incentive to keep coal
prices from falling too far—
and have strengthened price
controls over the past year—
to keep coal firms and their
employees afloat. “Supply-
side reform” goes only so
far.
See more at WSJMarkets.com
Apple
Supplier’s
30%
Net Falls
20
On iPhone
10
Problems
BY YOKO KUBOTA
BEIJING—Foxconn Tech-
nology Group, the world’s larg-
est contract manufacturer of
0
electronics, posted a 39% drop
in quarterly net profit amid
production challenges dogging
the flagship product of its big-
–10 gest customer, Apple Inc.
Apple’s iPhone X, which
Foxconn assembles in China,
went on sale Nov. 3, after it
was plagued by a series of pro-
duction problems among Ap-
ple’s suppliers. The troubles
were centered on new technol-
ogies packed into the device,
ever, with a starting price of
$999 and features including an
recognition.
Taiwan-based Foxconn,
known formally as Hon Hai
Precision Industry Co., posted
21 billion New Taiwan dollars
(about $695.5 million) in net
profit for the three months to
September, its statement
showed Tuesday. That was
lower than the NT$35.6 billion
average estimate of analysts
polled by the S&P Global Mar-
ket Intelligence. The 39% de-
cline in profit from a year ear-
lier was Foxconn’s largest drop
since 2008, during the global
recession, according to data
from S&P.
Quarterly revenue in the lat-
est period was NT$1.1 trillion,
nearly flat from a year before.
Hon Hai doesn’t give guid-
ance or hold earnings confer-
ences. Its shares closed down
0.9% on Tuesday.
Apple hasn’t disclosed sales
numbers for the iPhone X. The
phone made its debut with
long lines at Apple stores
GE
$155.2B
around the world and shipping
delays of five-to-six weeks,
showing that the company
hadn’t ramped up production
enough to meet demand. The
delay had shrunk to three to
four weeks in the U.S. as of
Boeing Tuesday afternoon.
$155.9B The iPhone X is one of a trio
of new iPhones that Apple re-
leased this year. The company
started selling the lower-cost
iPhone 8 and 8 Plus six weeks
earlier.
Chief Executive Tim Cook
said when Apple reported
quarterly results this month,
that production of the iPhone
X is “going well” but declined
to say when supplies would
catch up with demand.
Mr. Cook acknowledged that
forecasting demand for the de-
vices has been challenging. “If
we would have shipped all at
once, that would have been our
preferred scenario, obviously,
Please see RESULTS page B2
Still, investors hoping
coal stocks will catch a tail-
wind from the bullish senti-
ment lifting most industrial
commodities are likely to be
Hydro
disappointed.
Overall
Coal
Chinese firms like Hong
Kong-listed Yanzhou Coal
Mining and China Coal En-
ergy have already sold off
about 5% to 10% since mid-
September as coal prices
have begun to flag. Share
prices of Western producers
like Glencore have also
2017 come under pressure.
By contrast, rival Rio
Tinto, the current darling of
mining analysts, is rapidly
selling down its own coal
portfolio and recently cut
its coal thermal output fore-
cast for 2017 by about a
quarter.
Coal prices aren’t neces-
sarily set to collapse, but
optimists hoping that U.S.
policies alone can rescue the
global coal industry and
push prices higher are in for
a long, hard dig.
B2 | Wednesday, November 15, 2017 * **** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A
Airbnb..........................B4
Airbus..........................B3
Albemarle..................B19
Alkermes.....................B7
Allianz .........................B8
Altice USA.............A2,B1
Amazon.com..........A1,B3
AMC Networks ........... B4
Apple...........................B1
AT&T............................B1
B Hon Hai Precision
Bank of America.........B2
Blackstone Group ..... B13
Boeing....................B1,B3
Bonanza Creek Energy
Freeport-McMoRan...B19
Frontier
Communications.......B1
G-H
General Electric...B1,B19
GGP..............................B8
Glencore ...................... B1
Hamilton Beach Brands
Holding....................B20
Hasbro.........................B7
HNA Group................B18
Industry.....................B1
I-J
Indivior........................B7
Infineon Technologies
R-S
Range Resources......B19
Rio Tinto ..................... B1
Sandler O'Neill and
Partners....................B8
SandRidge Energy ...... B7
Siemens.....................B20
Singapore Airlines......B3
SL Green Realty..........B8
Sprint .......................... B2
Starbucks..................B20
STMicroelectronics...B20
T The country’s largest bank
Taubman Centers........B8
Tesla..........................B20
Thesys Technologies.B18
Mobile Payments Stymie Chase
BY EMILY GLAZER isting smartphone apps to an
Chasing Rivals industry consortium that de-
Many U.S. companies from Percent of online shoppers using veloped a money transfer net-
startups to Apple Inc. have work known as Zelle to com-
various mobile wallets over last
struggled to gain traction in 12 months pete with PayPal’s Venmo. That
the fast-growing world of mo- effort replaced large parts of
PayPal 61%
bile payments. J.P. Morgan’s earlier mobile
Visa Checkout 20 payment effort, Chase Quick-
is no exception. Amazon Pay 16 Pay, which now works through
J.P. Morgan Chase & Co., Zelle, even though the bank
Apple Pay 12
run by chairman and CEO still uses the QuickPay name.

MISHA FRIEDMAN/BLOOMBERG NEWS

.....................................B7
Broadcom .................. B20
Brookfield Property
Partners....................B8
C K-M
CBRE Group.................B8
CenturyLink.................B2
China Coal Energy ...... B1
CIT Group..................B20
Citizens Financial ..... B20
Comcast.......................B4
Comerica....................B20
Cree ........................... B20
D Netflix.........................B4
Deutsche Bank .... B1,B18
Discovery
Communications.......B4
E-F
Eaton Vance..............B18
Emirates Airline ......... B3
Foxconn Technology....B1
...................................B20
Intel...........................B20
J.P. Morgan Chase......B2
Just Play.....................B7
Keurig Green Mountain
...................................B20
Macerich......................B8
Mattel..........................B7
Metro-Goldwyn-Mayer
.....................................B2
MSG Networks ........... B3
N largely trail technology firms
Newfield ExplorationB19
Nintendo......................B1
NXP Semiconductors
...................................B20
P-Q
PayPal Holdings..........B2
Qualcomm.................B20
Time Warner..........B2,B4
TJX...............................B7
T-Mobile USA..............B2
U-V
Umicore.....................B20
Universal Pictures......B1
Vanguard...................B18
Verizon Communications
.....................................B1
Viacom.........................B4
VISA ............................ B2
W opportunities, but they still
Wal-Mart Stores.........B8
Walt Disney................B4
Warby Parker..............B8
Warner Bros................B2
Westfield.....................B8
William Blair...............B2
Y-Z
Yanzhou Coal Mining..B1
Zions Bancorp...........B20
Android Pay 11
James Dimon, has made nu- The bank’s payment busi-
merous splashes to promote Samsung Pay 8 ness, run by consumer-bank
its mobile offerings, including MasterPass 7 head Gordon Smith, is also
a television spot featuring a competing with smartphone
Ping-Pong playing Serena Wil- Facebook 6 makers such as Apple and
liams. But the payoff has yet Chase Pay 6 Samsung Electronics Co., and
to come. Square Cash 5 credit-card networks such as
Banks view mobile com- Visa and Mastercard.
Amex Express 5
merce as one of their biggest “We said from day one that
James Dimon, the chairman Source: Bernstein Research May 2017 survey changing customer behavior
and CEO of J.P. Morgan Chase. THE WALL STREET JOURNAL. would be tough,” J.P. Morgan
and nonbanks such as Visa spokeswoman Trish Wexler
Inc. and PayPal Holdings Inc. widely used yet and the rollout to pay,” says Brendan Miller, a said, in regards to Chase Pay.
Still, banks are pushing to ex- with merchants has fallen be- principal analyst at Forrester “But we’re Chase, and our cus-
pand offerings to have them in hind schedule, according to Research Inc. “Too many of tomers expect us to lean into
place for the day when the people familiar with the matter. these players are focused on the future and learn what we
general U.S. consumer flocks “We’re trying to get Chase the payment, not the things can now so we’re ready when
to paying with their phone as Pay embedded in as many that are going to drive the they are.”
much as millennial consumers places as possible,” Mr. Dimon consumer to buy.” J.P. Morgan is laying the

INDEX TO PEOPLE have begun to do or those in

A H
Aspbury, Peter............B2
B I
Baele, Mike...............B19
C K
Chiavarone, Steve.....B20
Clark, Tim....................B3
Cryan, John...............B18
D Lipow, Andy..............B19
Dimon, James.............B2
Dray, Deane.................B2
E Mallinson, Richard....B19
Enders, Tom................B3
F-G
Flannery, John.....B1,B19
Fuhrman, Peter...........B3
Guff, Mac .................... B2
Heymann, Nicholas.....B2
Inch, John....................B1
Kimishima, Tatsumi ... B2
L
Lee, Joshua.................B7
Lott, David..................B7
M-O
McGregor, Jim.............B3
Miller, Brendan...........B2
Miller, Jamie...............B2
Miyamoto, Shigeru.....B2
Mueller, Jeff ............... B2
O'Sullivan, Michael...B18
P is on Chase Pay, which is de-
Palfrey, Patrick.........B20
Peruzzi, Larry............B19
R
Robertson, Anthony...B1
Rosenthal, Steven....B18
Rotrosen, John............B7
S
Schütz, Alexander .... B18
Smith, Gordon.............B2
Stanley, Stephen........A2
T
Tan, Adam.................B18
V shoppers saying they had used
Volkow, Nora...............B7
Z tion of the 61% who said they
Zion, Isaac...................B8
other countries such as China.
J.P. Morgan’s newest focus
said at an industry conference
in September. “We’ll see how
it pans out.”
It is a far cry from J.P.
signed to make it easier for Morgan’s announcement of the
customers to pay with their product at a large financial-
smartphones in stores and on- technology conference two
line. The bank has spent about years ago in Las Vegas. The
$100 million on it, according payment app’s struggles also
to people familiar with the contrast with the rapid migra-
matter. tion the bank’s customers are
While J.P. Morgan doesn’t making to mobile for variety
disclose financial details about of basic banking functions like
Chase Pay, a May survey from watching balances and depos-
Bernstein Research ranked iting checks.
it ninth among U.S. mobile With payments, J.P. Morgan
wallets with only 6% of online has been challenged by two
factors: competitors have
it in the previous year, a frac- moved quickly while potential
customers have moved slowly.
used PayPal. Most Americans still prefer
The bank is now reframing using their cards, along with
its plans as more of a long- cash and checks.
Other countries, notably
China, have taken to mobile
payments more quickly. There,
payments are often integrated
It has spent $100
million on its latest
bid to capture a
bigger market share.
into text messages, and ana-
lysts estimate the size of the
mobile-payments market is 30
times or more the size of the
U.S. business.
In the U.S., rivals to J.P.
Morgan have stressed other
approaches, including Bank of
groundwork by signing on
large retailers including Wal-
Mart Stores Inc., Best Buy Co.
and Starbucks Corp. J.P. Mor-
gan initially announced other
big retailers through an in-
dustry consortium, including
Target Corp., but didn’t roll
out Chase Pay with some of
them after the consortium
dissolved.
Chase Pay faces even more
competition than it has seen so
far. Wal-Mart, while still ac-
cepting Chase Pay, has been
developing its own parallel
wallet dubbed Wal-Mart Pay. In
early 2018, stores including
West Elm and Pottery Barn will
start accepting both PayPal and
Venmo for the first time.
Meanwhile, a July survey from
Morgan Stanley analysts found

RESULTS age of components used in the

facial-recognition system and
manufacturing difficulties over
the organic light-emitting di-
term play. J.P. Morgan execu-
tives still project that Chase
Pay could at a minimum en-
hance its customers’ credit-
While Chase Pay works
through the bank’s cards too,
there hasn’t yet been enough
of an impetus to switch, ana-
America Corp., which have
avoided their own branded
mobile wallets.
Meanwhile, J.P. Morgan
that PayPal was accepted at
377 of nearly 500 top online
merchants while Chase Pay
was accepted at only four.
Continued from the prior page ode screens, The Wall Street card, debit-card and merchant lysts say. “Customers aren’t joined a group of large banks —Peter Rudegeair
but we didn’t have that Journal has reported. relationships. Still, the app isn’t out there asking for a new way in June in connecting their ex- contributed to this article.
choice,” Mr. Cook said in an in- Production of the iPhone X
terview at the time. is likely to rise in coming
Suppliers and contract elec- months. Apple’s production
tronics makers that rely heav- volume rose around 3% in the
ily on Apple often are hit when third quarter to about 44 mil-
production bottlenecks emerge lion iPhones from the previous
in Apple products. quarter, research firm Trend-
Pegatron Corp., which as- Force said in a note. In the
sembles the iPhone 8, said last fourth quarter, that is antici-
week that its quarterly net pated to jump to 81 million
profit fell 32%, which analysts phones, with the iPhone X ex-
attributed to components pected to account for a third of
shortages and labor issues. that, TrendForce said.
The production problems of —Liza Lin in Shanghai
the iPhone X included a short- contributed to this article.

YIELD investors into high-yielding

debt. In October, the extra
yield to hold junk bonds rela-
tive to ultrasafe Treasury
Continued from the prior page bonds was on the verge of
largest wireless carriers, T- reaching its lowest level since
Mobile US Inc. and Sprint before the financial crisis.
Corp., along with companies Problems largely confined to a
that still rely heavily on legacy specific set of companies
landline assets such as Fron- shouldn’t be seen as a harbin-
tier and CenturyLink Inc. Rep- ger of a widespread market
resentatives for those compa- downturn, some observers
nies didn’t comment for this said.
article. “This is more about idiosyn-
Bonds backed by Frontier cratic risk,” said Jeff Mueller,
GETTY IMAGES

and CenturyLink have dropped a high-yield debt portfolio

sharply after both companies manager at Eaton Vance.
reported lackluster third-quar- Bonds issued by communi-
ter earnings along with down- cations companies, a grouping
ward revisions to projected that includes telecom as well The dozens of ‘Super Mario Bros.’ games and their spinoffs are widely believed to be the best-selling videogame franchise ever.
earnings. Frontier’s 11% notes as advertising, internet and
due 2025 are trading well be-
low par at around 76 cents on
the dollar, down from 85 cents
at the end of last month, ac-
media companies, are widely
held. In the iShares iBoxx $
High Yield Corporate Bond ex-
change-traded fund, the larg-
MARIO been making the Japanese vid-
eogame company feel confident
it will be involved enough in
the creative process, said one
several years.
Nintendo CEO Tatsumi Ki-
mishima said in an interview
last year with Japanese news-
box office. Last year’s “War-
craft” was a flop in the U.S.,
though it did well in China, and
other disappointments have in-
cording to MarketAxess. est junk-bond ETF, with $18.5 Continued from the prior page person close to the talks. Nin- paper Asahi Shimbun that the cluded adaptations of “Doom,”
In the case of Sprint, the re- billion in assets, communica- for movies or TV shows based tendo’s creative guru, Shigeru company was in talks with sev- “Need for Speed,” “Prince of
cent bad news was the break- tions-company bonds make up on any of its marquee charac- Miyamoto, who created Mario eral Hollywood studios about “Persia” and “Assassin’s Creed.”
down of merger talks with T- 24% of the portfolio, including ters since 1993’s commercially Bros., has been part of the talks making movies based on its Still, they remain attractive
Mobile. Its 6.875% bonds due five of the top 10 holdings. The and critically disastrous “Super and likely will be a producer on games. to Hollywood. Time Warner
2028 traded above 110 cents ETF is down roughly 2% this Mario Bros.” starring Bob Hos- the movie, along with Mr. Me- In an April analyst briefing, Inc.’s Warner Bros. and Metro-
on the dollar as recently as month, erasing much of its kins, John Leguizamo and Den- ledandri, this person said. Mr. Kimishima said the com- Goldwyn-Mayer Inc. in March
2017 gain. nis Hopper. Since then, its only The agreement could allow pany is making theme-park and will release a reboot of “Tomb
“We’ve had such low volatil- cinematic efforts have been 20 Illumination to make multiple movie deals less for the poten- Raider,” after a pair of films in

20%
ity for so long now that a inexpensive children’s animated “Super Mario” movies, though tial profits from licensing than the early 2000s based on the
move like the one we saw last movies based on its “Pokémon” only one is planned, this person for the additional sales revenue games about an explorer and
week seems a lot more dra- games that were produced by added. It would be animated by that could come from “synergy action hero had mixed results.
matic,” said Peter Aspbury, an affiliate. Illumination’s Paris studio Mac with the dedicated videogame An “Angry Birds” animated
Year-to-date drop in shares of fund manager at J.P. Morgan The most complicated issue Guff and is in the early stages business.” movie last year performed de-
S&P 500 telecom companies Asset Management. in the negotiations between Il- of development, meaning it Videogame movies have had cently and a sequel is sched-
Messrs. Aspbury and Muel- lumination and Nintendo has likely wouldn’t come out for a relatively poor record at the uled for 2019.
ler both said that the recent
wobble gave them the oppor-
Oct. 30 but were below par at
99.25 cents on the dollar on
Tuesday.
Challenges exist in Europe
tunity to buy bonds they had
already wanted at a cheaper
price.
Cash calls for high-yield
GE of expectations regarding the
scope of the business model/
portfolio changes,” Mr. Dray said
in a note to clients.
ADVERTISEMENT

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as well: For example, the chief bond funds haven’t been par- Continued from the prior page Nicholas Heymann, an ana- To advertise: 800-366-3975 or WSJ.com/classifieds
executive of Altice quit last ticularly large so far. The four- Wall Street” was betting on fur- lyst with William Blair & Co.
week and the Dutch-listed tele- week moving average of net ther GE declines. Now investors who still has an outperform
com is grappling with disap- flows from U.S. loan funds was are trying to decide on the ap- rating on the stock, is less PUBLIC NOTICES
pointing earnings and large
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Nov. 8, according to Thomson
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outlook is credible and where
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in 2028 traded at 94 cents of Reuters Lipper. That result GE could end up if the economy weeks, but expects them to
  
 

face value late in the European isn’t a big outlier when com- slows down, the person said. settle around $20 to $21.      
afternoon Thursday, according pared with the rest of the year. RBC Capital analyst Deane Both Mr. Flannery and GE   !"#$% "&'#&$& ( &)
* +,
$ "$ $ -  . / #& 010
ADVERTISE TODAY
to Tradeweb. They were trad- For outflows to surge, con- Dray downgraded GE stock to Chief Financial Officer Jamie
* +,
+ -0 #   !&)&) (
ing above par as recently as cerns would have to grow that sector perform from outper- Miller on Tuesday defended & -0/23 (  
* +, $,&4
(800) 366-3975
early November. a larger share of issuers is in form, citing the unexpected the dividend cut as a neces- $*/  "&  ( $"" #)&))

Some investors noted the danger of defaulting, and there length of a turnaround. sary step so the extra cash can
"$   ) $""  # ( sales.legalnotices
5) (6) $$/ "" &'#&&) *&
selling followed a long rally in is no sign of that yet, Mr. “While the market was not be allocated in different and )    *&&47* ( 5)
* @wsj.com
+, (6 ) #"  & 8 % )&(
junk bonds that came as ul- Mueller said. expecting any quick fixes, we be- more flexible ways. #)$& 70070./ © 2017 Dow Jones & Company, Inc.
tralow interest rates around —Nick Kostov lieve that CEO John Flannery’s —David Benoit and Ben Eisen All Rights Reserved.
the developed world pushed contributed to this article. highly anticipated plan fell short contributed to this article.
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THE WALL STREET JOURNAL. * * Wednesday, November 15, 2017 | B3

BUSINESS NEWS

Airbus, Emirates Madison Square Garden Seeks Buyer for WNBA’s New York Liberty
The Madison Square Garden

Face Off Over Jet

BY ROBERT WALL
DUBAI—After stepping back
from making a big expected or-
der for Airbus SE’s largest jet,
the A380 super jumbo, Emir-
ates Airline on Tuesday ratch-
eted up the pressure on the
plane maker, demanding it com-
mit to making the unprofitable
plane for at least another de-
cade before it buys any more.
“The undertaking that Air-
bus will have to make if we go
ahead with a further order is
that the plane will continue in
Co. is looking to sell its Women’s
National Basketball Association
franchise, the New York Liberty.
The New York Liberty, estab-
lished in 1996, is one of the orig-
schedule and costs skyrocketed. inal eight teams in the women’s
The Toulouse, France-based professional basketball league.
company has failed to make The company said Tuesday it is
money on the program because actively seeking a buyer to take
of a dearth of orders, and after over immediate operations of
more than a decade of produc- the franchise.
tion each A380 still costs more MSG, which also owns Madi-
to build than Airbus can son Square Garden—home of
charge. An A380 costs $436.9 the Liberty—and the National
million at list price, though air- Basketball Association’s New
lines typically get discounts. York Knicks, was the team’s first
The bleak outlook for the owner. (At left, Sugar Rodgers
A380 was punctuated this of the Liberty, with the ball.)
month when the first of the “This was a difficult decision
jets, once operated by Singa- for us, which we made after
pore Airlines, was placed in carefully assessing the needs of

NATHANIEL S. BUTLER/NBAE/GETTY IMAGES

production for a period of mini-
mum of 10 to 15 years,” Emir-
ates Airline President Tim Clark
said at the Dubai Air Show.
Emirates is the A380’s big-
gest customer, with 100 of the
jets in service and a further 42
already on order. It had been
expected to order more than
30 more of the planes in a
deal that would have a list
price of around $15 billion.
The Persian Gulf carrier’s
long-term storage after the our business,” Chief Executive
airline opted not to extend an James Dolan said.
initial lease period. The carrier The announcement about
is the second biggest A380 seeking a buyer of the team
customer, having ordered 24. comes one day after the com-
Airbus officials have in the pany said David O’Connor would
past suggested they are con- step down from his roles as
cerned about the financial via- CEO and president. The com-
bility of the program, though pany named Mr. Dolan as his in-
Chief Executive Tom Enders terim successor.
last month said he expected —Austen Hufford
the aircraft to remain in pro-
duction another decade.

Amazon Bends to Beijing’s Call

reluctance is the latest head-
wind for the A380—a program
that Airbus has sunk more
than $20 billion into as it tried
to upstage Boeing Co.’s popu-
lar 747 jumbo jet. Emirates’ ne-
gotiating ploy also spotlights
the dependence of the A380 on
support from one airline.
Airbus’s effort to develop
the double-decker plane that
can seat more than 500 pas-
sengers initially ran behind
AIRLINE NUMBER OF PLANES
0 25
Emirates Airline
Singapore Airlines
Qantas
Amedeo
Lufthansa
British Airways
Qatar Airways
Korean Air
Etihad Airways
Air France
Source: the company
Its difficulties come at a
time when big four-engine
planes such as the A380 and
Boeing’s 747 have fallen out of
favor with carriers, forcing the
plane makers to cut produc-
tion plans.
Emirates underscored the
popularity of smaller long-
haul jets with its commitment
this week to take 40 Dreamlin-
ers in a deal valued at more
than $15 billion at list price.
50 75 100 125 150
Dubai Dependence
Airbus A380 orders from
Dubai-based Emirates Airline
dwarf those of the plane's other
top 10 buyers
THE WALL STREET JOURNAL.
Rule change prompts
sale of company’s
cloud hardware in
China to local partner
Amazon.com Inc. on Tues-
day said it has sold computing
equipment used for its cloud
services in China to its local
partner, Beijing Sinnet Tech-
nology Co., in a move analysts
said underscores the increas-
ingly chilly atmosphere for for-
eign companies in the country.
Amazon Web Services said it
took the step to meet new Chi-
nese regulations.
“Chinese law forbids non-
Chinese companies from own-
ing or operating certain tech-
nology for the provision of
cloud services,” AWS said. “As
a result, in order to comply
with Chinese law, AWS sold
certain physical infrastructure
assets to Sinnet, its longtime
Chinese partner.”
The company said it remains
committed to China and that
customers would continue to
receive AWS cloud services. It
also said the deal didn’t involve
any transfer of intellectual
property.
Beijing Sinnet, in a regula-
tory filing late Monday, said it
was paying up to 2 billion yuan
($300.8 million) for the com-
puting assets.
Peter Fuhrman, chairman of
technology investment bank
China First Capital, said Ama-
zon’s decision illustrates China’s
tightened grip on those compa-
nies that provide internet ser-
vices.
“The key policy brickwork is
now done,” Mr. Fuhrman said.
“The Chinese internet, in its
broad entirety, will become
even more comprehensively
managed by the Chinese state.”
Mr. Fuhrman added that
such protectionist moves will
ultimately limit China’s access istry of Industry and Informa-
to the latest technology and tion Technology informed for-
could hurt its competitiveness eign companies with cloud
over the long term. ventures that new operating li-
Jim McGregor, chairman of censes would be applied by
the Greater China region for year-end.
public-affairs consultancy APCO Amazon’s deal with Sinnet
Worldwide, said Amazon’s could clear the final obstacles
move should be viewed in light for AWS to get such licenses,
of China’s Made in China 2025 analysts from Citic Securities
plan to promote the nation’s said in a note Tuesday.
domestic enterprises and tech- Late last year, China’s MIIT
nologies. “China has a different also issued draft measures call-
plan and it has the power,” he ing for tighter technical cooper-
said. ation between foreign cloud op-
U.S. tech companies in China erators and their local partners.
are dealing with a different The proposed rule change trig-
world “and it would be corpo- gered complaints from more
rate suicide not to acknowledge than 50 U.S. lawmakers, that
it,” he added. the change would force U.S.
Amazon and other U.S. companies to essentially trans-
companies, including Apple fer ownership and operations
Inc., have faced increased of their cloud systems to Chi-
pressure in the country in re- nese partners.
cent months in the face of the MIIT officials had no com-
Chinese government’s desire ment.
to control cyberspace. —Yang Jie in Beijing
Early this year, China’s Min- and Liza Lin in Shanghai

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B4 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Amazon’s Second Home HOW THIS WORKS Better

The Wall Street Journal used
More than 200 North American cities and regions are lining up to apply for Amazon's criteria, interviews
Amazon's second headquarters, describing their cities in flowery terms. with site-selection experts Worse
and people familiar with
THE BEST OVERALL Amazon's thinking to come up with a list of
potential locations for a new corporate center.
Amazon's preferences include a ready-to-go location by 2019. But it's also looking at cultural
Cities are ranked based on factors in the
fit, the cost of living and the favorability of the state tax climate for business. Dallas, Boston company's request for proposals, using an equally
and Washington, D.C., rank highest.

THIBAULT CAMUS/ASSOCIATED PRESS

weighted index to average the cumulative scores.
The more bars there are in each category of the
Tech labor force Fiscal health Cost of living radar plots, the higher the ranking.
College population* Culture fit State tax rank

DALLAS BOSTON D.C.

A cap will limit the days per year that hosts can rent dwellings.

Paris Authorities
Give Airbnb Plan
MOST TECH TALENT MOST SEATTLE-LIKE OTHERS WE LOOKED AT
Chilly Reception
One of the most NEW YORK Amazon has called ATLANTA NASHVILLE BY SAM SCHECHNER ing rented beyond the 120-day
important factors in the Seattle area limit without special authoriza-
the search for a new home since the PARIS—Airbnb Inc. plans to tion. That means it applies to
headquarters is company was curb rentals of some of its most tourist-filled neighborhoods
ensuring enough founded in Chief popular listings in the French like the Marais and the area
tech talent to keep Executive Jeff Bezos' capital, expanding its bid to pla- around the Louvre Museum, but
Amazon growing. garage in 1994. cate regulators in the U.S. and doesn’t include other popular
Europe—but not enough to sat- areas like Montmartre or the
The company plans The online retail
isfy some city officials here. Left Bank, even though they are
to add 50,000 giant's rapid growth
The home-sharing firm said also subject to the legal limit.
employees there there has meant
Tuesday it would start auto- “The law says illegal listings
over 10 to 15 years, D.C.
rising property prices CHICAGO AUSTIN matically capping the number should be removed in all the
including many and more traffic, but
of days a year that hosts can arrondissements,” Ian Brossat,
software developers, has helped transform
rent out dwellings in parts of Paris’s deputy mayor in charge
and that will require the city into a tech
central Paris—the company’s of housing policy, wrote on so-
enough trained hub.
largest market by listings, with cial media. “Last I heard, the
people in the area.
65,000. That will effectively law of profit doesn’t trump the
force some hosts to comply laws of the Republic.”
with the city’s legal limit on An Airbnb spokesman said
short-term rentals of noncom- the company put the cap where
mercial homes to 120 days a violations appear to be concen-
year—but without forcing hosts trated, in order “to address local
CHICAGO DENVER MINNEAPOLIS in other parts of Paris to do so. problems where they are.” He
Airbnb’s decision to enforce added that “our goal is not to
Top universities such as Denver has a strong
a cap in parts of Paris is the replace law enforcement.”
Northwestern and the cultural fit, with the
first expansion of a measure Airbnb is implementing the
University of Chicago feed most craft breweries
the firm rolled out last year in automatic cap in Paris during a
into the Chicago metro area. per capita among
London and Amsterdam, es- tense time for the company in
these cities.
tablishing it as a template in France. Government officials
the company’s efforts to calm have said they believe the com-
activists and regulators world- pany should pay more income
wide. Many cities argue that tax in the country. And in De-
Methodology: the firm’s short-term rentals cember a new law—which the
COLLEGE POPULATION: Percentage of population that is college educated. SEATTLE NEWARK† make it more lucrative for Airbnb lobbied against—will
TECH LABOR FORCE: Total labor force in a tech occupation. Includes tech jobs not in the tech industry.
FISCAL HEALTH: Cities are scored on metrics including ratio of general fund balance to expenditures;
property owners to cater to oblige Parisians renting out
ratio of pension contributions to total government-wide revenues; change in unemployment rate in tourists than to rent out their primary residences on
2015; and change in property values in 2015. homes to long-term residents, platforms like Airbnb to register
COST OF LIVING: Estimated cost of living for mid-management households by weighting different
consumer expenditure categories.
and have sought to limit them. with the city, and post registra-
CULTURAL FIT: Sites that reflect ‘Cultural Community Fit’ and ‘Community/Quality of Life’ as outlined “We want to do our bit to tion numbers on listings. Own-
in the Amazon request-for-proposals, including strong universities, diverse population, recreational address historic housing con- ers renting apartments that ha-
opportunities and an overall high quality of life. Excludes government incentive packages.
STATE TAX RANK: Based on tax rates, including corporate, income and property taxes.
cerns in central Paris and help ven’t been registered or go
One is lowest tax state, 50 is highest tax state. make this city a better place beyond the legal limit face fines
*Percentage of population that is college-educated. †Includes all of Northern New Jersey for everyone,” said Emmanuel of up to €50,000 ($58,600). City
Sources: Green Street Advisors, Real Estate Analytics THE WALL STREET JOURNAL. Marill, Airbnb’s general man- inspectors also mount opera-
ager for France. tions to find and prosecute vio-
However, Paris officials dis- lators. Mr. Brossat said the city

Hello, Sports Fans, This Is Not for You missed the move as insufficient
because it will block Airbnb
listings only in the city’s first
four arrondissements from be-
has issued fines to owners of il-
legal tourist apartments totaling
€991,000 so far this year, three
times the amount in all of 2016.
BY CARA LOMBARDO Skeptics see it as a roundup of and TBS. Philo also doesn’t in-
less-popular networks with a clude broadcast networks.
There’s now a way to get limited market on their own. Philo Chief Executive Andrew Other Big Cities concessions so far has been the
about three dozen entertain- Philo subscribers will get McCollum, who was a founding voluntary curbing of its most
Win Concessions
COMEDY CENTRAL/EVERETT COLLECTION

ment-oriented cable channels
for $16 a month, so long as
you can live without access to
the big game.
The online-TV service Philo
launched Tuesday with a bundle
of 37 channels, including Com-
edy Central, TLC, Food Network,
AMC and A&E. It is the newest
player in a sea of streaming of-
ferings ranging from “skinny
bundles” of channels to access
to individual networks.
The people behind Philo and
the networks supplying its pro-
gramming say it is a long over-
due package aimed at cable TV
“cord-cutters” who don’t watch
sports and cable news channels.
access to a slate of channels
owned by Discovery Commu-
nications Inc., Viacom Inc.,
Scripps Networks Interactive,
A+E Networks and AMC Net-
works Inc. Its other channels
include Nickelodeon, Animal
Planet, History and MTV.
The five companies supply-
ing programming are also
Philo’s main financial backers,
together investing $25 million.
Some of their networks
aren’t part of the streaming
TV bundles offered by the likes
of YouTube and Hulu. Offering
their own entertainment-fo-
cused bundle is a direct way of
reaching cord-cutters.
member of Facebook, said Net-
flix Inc. and other established
services are failing to capture
the social aspect of watching
TV. Philo plans to add social
features early next year to let
users see what their friends are
watching and sync viewing so
people can watch shows to-
gether from different locations.
Philo’s bundle includes Comedy Walt Disney Co. chief Bob
Central, home of ‘South Park.’ Iger dismissed the idea of a
Philo-like product when asked
For an entertainment-fo- this year about lower-cost
cused package, there are some packages that exclude sports.
holes. Properties from Com- “I don’t see how that’s practi-
cast Corp.’s NBCUniversal such cal in terms of gaining much
as Bravo and E! are missing, as penetration,” said Mr. Iger,
are Time Warner Inc.’s TNT whose company owns ESPN.
Airbnb has long denied hav-
ing a significant impact on
housing, but in recent years it
has started making an effort
to cozy up to local officials and
soothe complaints. In March,
the company settled a lawsuit
it had filed against a tough
San Francisco law by agreeing
to help register hosts on behalf
of the city. In Berlin, the com-
pany has lobbied to convince
legislators to revise a law that
makes it difficult for residents
to rent out homes.
One of the firm’s biggest
prolific hosts—which the firm
says represent a small sliver of
its listings, but likely account for
a larger slice of its revenue. So
far in London, where it has ap-
plied a citywide cap, the com-
pany says the effort successfully
has pared listings. The number
of rentals that go over the city’s
90-day-a-year limit has declined
from 21% of rentals before the
rule to 7% this year, the com-
pany said in a September report.
The rentals still over the limit in-
clude apartments with special
authorization and those that
went over the limit before the
cap was applied, Airbnb said.

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THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B5

OPEN LETTER

Interactive Brokers Group

777 South Flagler Drive
West Palm Beach, Florida 33401

Thomas Peterffy
Chairman

November 14, 2017

J. Christopher Giancarlo AMERICAS

Chairman, Commodity Futures Trading Commission GREENWICH
Three Lafayette Centre CHICAGO
WEST PALM BEACH
1155 21st Street, NW
MONTREAL
Washington, DC 20581

EUROPE
Re: Dangers of Clearing Bitcoin and Cryptocurrency Derivatives in Same Clearing ZUG
Organization as Other Products LONDON
BUDAPEST
ST. PETERSBURG
Dear Chairman Giancarlo: TALLINN

I am the Chairman and founder of Interactive Brokers LLC, a futures commission merchant and
broker-dealer with over $ 3.8 billion in regulatory net capital and over $1.2 billion in client margin ASIA
PACIFIC
funds (Interactive Brokers Group is publicly traded on Nasdaq with a market cap of over $22 billion).
HONG KONG
As a CME clearing member, we are deeply concerned with proposals that would allow Bitcoin and
MUMBAI
other cryptocurrency derivatives to be cleared in the same clearing organization as other products. SHANGHAI
SYDNEY
This letter is to request that the Commission require that any clearing organization that wishes to clear TOKYO
any cryptocurrency or derivative of a cryptocurrency do so in a separate clearing system isolated from
other products.

There is no fundamental basis for valuation of Bitcoin and other cryptocurrencies, and they may
assume any price from one day to the next. This has been illustrated quite clearly in 2017 as the price
of Bitcoin has increased by nearly 1000%.

Cryptocurrencies do not have a mature, regulated and tested underlying market. The products and
their markets have existed for fewer than 10 years and bear little if any relationship to any economic
circumstance or reality in the real world.

Margining such a product in a reasonable manner is impossible. While the buyer (the long side) of a
cryptocurrency futures contract or call option could be required to put up 100% of the value to ensure
safety, determining the margin requirement for the seller (the short side) is impossible.

Instituting daily price move limits on cryptocurrency derivatives does not solve the problem. In a
runaway upward market for example (like the silver market in the 1980’s caused by the Hunt brothers),
the futures price gets locked limit-up day after day with little or no trading and the short sellers are
 
      
   

If the Chicago Mercantile Exchange or any other clearing organization clears a cryptocurrency
together with other products, then a large cryptocurrency price move that destabilizes members that
clear cryptocurrencies will destabilize the clearing organization itself and its ability to satisfy its
fundamental obligation to pay the winners and collect from the losers on the other products in the
same clearing pool.

Accordingly, even clearing members who do not wish to clear cryptocurrencies because they judge the
risk to be too great cannot isolate themselves and their customers from a potentially catastrophic loss
from cryptocurrency risk at the clearing organization.

Thus, it is no answer for the proponents of clearing these products to suggest that objecting clearing
members can simply charge very large margins or not offer cryptocurrencies at all. In a central
clearing organization, all members are at risk for the activities of any member (and of the clearing
organization itself).

Unless the risk of clearing cryptocurrency is isolated and segregated from other products, a catastrophe
in the cryptocurrency market that destabilizes a clearing organization will destabilize the real economy,
as critical equity index and commodity markets cleared in the same clearing organization become
infected.

     


        
   
whole) from the unique risks inherent in clearing cryptocurrencies is to require that they be cleared in a
separate clearing system, isolated from other products.

We would be happy to discuss this with you or to provide any further information at your convenience.

Sincerely,

Chairman

The Professional’s Gateway to the World’s Markets

www.interactivebrokers.com
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B6 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL.

NEAL LIPSCHUTZ EDITOR, ETHICS AND STANDARDS

The Face of Real News

Neal Lipschutz and the standards team hold the WSJ newsroom to the
highest principles of journalism, even in the face of adversity. In 2015, he
helped fight a court order barring the Journal from running a story about
the controversial arrest of a stock analyst in India. Story updates meant
giving the subject another chance to respond—and seek another
injunction. But it was worth the risk to be accurate and fair.

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© 2017 Dow Jones & Company, Inc. All rights reserved. 6DJ6163
THE WALL STREET JOURNAL. * * * * * NY Wednesday, November 15, 2017 | B7

BUSINESS NEWS

For Toy Makers, a New Game Study Compares

BY PAUL ZIOBRO

Hasbro Inc. and Mattel Inc.

Addiction Drugs
combined would result in a toy BY JEANNE WHALEN physician and associate pro-
company with a large but fessor at New York University
hardly dominant share in a A closely watched trial School of Medicine, who
highly fragmented industry. comparing two opioid-addic- helped lead the study.
The two companies, which tion treatments found patients “What is new, and what the
recently engaged in talks about had a harder time beginning study was really about from
a possible tie-up, would con- treatment with one of the our perspective, was: What
trol just over one-third of the medications, leading to more happens if you are able to get
U.S. market for traditional toys relapses in that group. people onto one or the other
and games, according to Eu- Among patients who were medication?” said his col-
romonitor International Ltd. able to start treatment, the league, John Rotrosen, an-
On a global scale, they would medications were similarly ef- other leader of the study and
control 22% of overall sales. fective at preventing relapse, a a physician and psychiatry
With a low barrier to entry, finding researchers and the professor at New York Univer-
the toy industry is populated study’s sponsor called particu- sity School of Medicine. “What
with hundreds of inventors and larly important. we were really hoping, and
JOHN SCIULLI/GETTY IMAGES

small firms seeking to create The study, sponsored by the what we found was...the two
the next hit. Nevertheless, Has- National Institute on Drug medications would be suffi-
bro buying Mattel would have a Abuse, was one of the first to ciently equal, so providers and
big impact on the sector. compare the monthly injection patients and families really
According to toy consultant Vivitrol to the daily oral drug recognized they have a
Richard Gottlieb, inventors Suboxone. choice,” he said.
would have one less potential As opioid addiction has Nora Volkow, director of
buyer of their ideas. Entertain- Children are seen playing with toys at a kids’ benefit in West Hollywood, Calif., in 2016. spread rapidly across the U.S., NIDA, said it was important to
ment companies like Walt Dis- physicians have been awaiting
ney Co. would no longer be able Euromonitor data analyzed by better evidence about the rela-

65%
to play the two biggest compa- Wells Fargo. They would control Toy Tie-Up tive merits of various treat-
nies off each other to extract the more than half of the market for U.S. market share by category ments, making the NIDA-fi-
best terms on licensing deals. dolls and action figures. Hasbro Mattel nanced trial an important
Retailers would face a supplier Analysts were split as to event.
with much greater sway. whether the combination would Model vehicles
The 570 opioid-dependent Portion of Vivitrol group that
“It’s highly destabilizing to trigger antitrust objections. Dolls patients in the trial were ran- relapsed, versus 57% for Suboxone
an industry to have such pow- BMO analyst Gerrick Johnson domly assigned to one of two
erful and prominent players in said the rise of competitors like Action figures groups. About 57% of those in
the industry having this kind Lego A/S, Spin Master Inc. and the Suboxone group experi-
of disruptive situation,” Mr. Just Play LLC “offer potential Baby enced a relapse during the six- have different treatment op-
Gottlieb said. “If you’re an in- counterbalances to a Mattel/ Games month study, according to re- tions because some people
ventor, licensor or retailer, this Hasbro combo.” sults published in The Lancet. don’t respond to certain medi-
is a concern.” An important issue for reg- Ride-on vehicles A higher proportion—65%— cations. “It’s the same as with
In some categories, a united ulators would be whether the experienced relapse in the Viv- antidepressants...it’s better to
Hasbro-Mattel would have much deal would make it easier for Outdoor & sports itrol group. Much of the differ- have a diversity of treat-
greater heft. For example, in the companies to raise prices, ence came down to the greater ments,” she said.
model vehicles, which includes “since they wouldn’t discipline Total difficulty of starting Vivitrol In an editorial also pub-
Mattel’s Hot Wheels line of toy each other,” said Seth Bloom, 0% 10% 20% 30% 40% 50% 60% treatment in the first place, lished in The Lancet, an addic-
cars, the two would control 62% an antitrust expert with Bloom Source: Euromonitor International via the researchers said. tion specialist not involved in
the U.S. market, according to Strategic Counsel PLLC. Wells Fargo Securities THE WALL STREET JOURNAL. Patients must stop taking the study said the similar per-
opioids for several days and formance of the drugs after
be fully detoxified before they treatment initiation was con-
can get their first Vivitrol sistent with the results of a
ADVERTISEMENT shot—a step some addicts find smaller study conducted re-
hard to take because it re- cently in Norway.

Career Opportunities
To advertise: 800-366-3975 or WSJ.com/classifieds
quires them to experience
some withdrawal symptoms.
Suboxone treatment can begin
The physician, David Lott,
an addiction psychiatrist at
University of Illinois College of
immediately, making it an eas- Medicine in Chicago, said the
ier option. Lancet study adds “to growing
CAREERS CAREERS
Fewer study participants scientific literature supporting
were able to start treatment the effectiveness and safety”

 6  with Vivitrol compared with Su- of Vivitrol. But he added that
& 7+ * *
 
 
 boxone—about 72% versus the “substantial induction hur-
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Chief Executive Officer Opportunity 94%—and many of those who dles for [Vivitrol] continue to
failed to begin Vivitrol treatment present challenges.”

    



  
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 relapsed, the researchers said. Vivitrol maker Alkermes
(    * + *
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Landmark Services Cooperative, Cottage Grove, Wisconsin, is a The subset of 474 patients PLC said the study “provides

   %

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  who were able to start treat- additional evidence supporting
   $  member-owned cooperative business providing agronomy, animal ment with one of the drugs ex- the use of Vivitrol.” Suboxone
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" nutrition, grain and energy and retail products. Landmark services perienced similar efficacy—just maker Indivior PLC said it
 
 
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    over half of patients in each couldn’t immediately comment.
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over 15,000 members in communities throughout southern Wisconsin group experienced a relapse. Rates of death, overdose
1   +

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 knew Vivitrol treatment was roughly equal in the two study
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 over $450 million, Landmark regularly ranks in the top 100 agriculture harder to start, but there was groups, the researchers said.
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 cooperatives in the nation. All together, we employ more than 500 little data showing how well it There were five fatal over-

 
    
compared with Suboxone once doses in the study—two in pa-


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people. a person successfully began tients in the Vivitrol group and


 
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treatment, said Joshua Lee, a three in the Suboxone group.
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Wednesday, November 15, 2017
Malls Pursue Lesser-Known Stores
Idea is to feature
young retailers that
began online and built
millennial followings
BY ESTHER FUNG
Landlords of top U.S. malls
used to rent most of their
space to the biggest national
retailers, which boasted the
best credit and the most desir-
able selection of goods.
Now they are looking be-
yond big chains and toward
lesser-known retailers and
startups that started online
but have amassed customers
and brand recognition.
The reason: Such retailers
tend to offer novel products
that resonate with web-savvy
customers, particularly millen-
nials, a massive group of po-
tential customers landlords
are eager to cultivate.
INDOCHINO
Century City, a recently
opened 1.3 million-square-foot
open-air mall in west Los An-
geles, has a larger-than-aver-
age number of tenants that
started out as e-commerce re-
tailers. Candy boutique Sugar-
fina, clothing retailers Bono-
bos—now a unit of Wal-Mart
Stores Inc.—and Untuckit,
eyeglass retailer Warby
Parker and Amazon Books all
have opened stores in the cen-
ter, which had been renovated
by Westfield Corp.
Some of these stores are
showrooms and don’t carry in-
ventory so customers will
have their purchases delivered
to them or they could pick up
their purchases at the store
later. Such stores take up less
square footage.
“The nature of retail is
changing dramatically, but
consumer desire for new and
unique products is still very
strong,” said Peter Huddle, ex-
ecutive vice president of de-
velopment at Westfield.
“Many of these digital brands
are ahead of the curve when it
comes to understanding what
is driving consumer sales and
“Market knowledge is where it starts.
I’ve come to rely on their insight to make
the best decisions for our company.”
– FR EDER ICK SHINN, R EA L ESTATE M A NAGER
MITSUBISHI INTERNATIONAL CORPORATION
EXPERIENCE EXTRAORDINARY
transwestern.com
THE PROPERTY REPORT
Indochino’s store at the Tysons Galleria mall in Virginia. Malls are seeking retailers that appeal to web-savvy customers.
how to market in this new
era.”
In the past, a startup with-
out a big portfolio of physical
stores could hardly get space
in class-A malls. Landlords
had doubts about their longev-
ity and their ability to operate
stores successfully.
“They would never put you
in a Century City or Short
Hills mall,” said Corey Bialow,
chief executive at Bialow Real
Estate LLC, a firm that repre-
sents retail tenants. “Mall de-
velopers are now very aggres-
sive in enticing online
retailers with favorable rent
deals.”
The risk for landlords in
embracing younger retailers is
that their tenants have shorter
track records and might peter
out. Clothing retailers Boston
Proper and Nasty Gal Inc., for
example, opened physical
stores but eventually closed
them after a few years.
But analysts think betting
on upstarts is a risk worth
taking at a time when the re-
tail industry is being reshaped
by online shopping and chang-
ing consumer preferences.
“If you don’t do that today,
you’re not innovative and I
think your real estate actually
has intrinsically lost value,”
said Anthony Buono, executive
managing director of retail
services at CBRE Group, a
real-estate consultancy. “A lot
of increase in value in real es-
tate is because of the newest
and most interesting, most
unique brands that have been
formed in food and beverage,
in digital, in women’s ready to
wear, in men’s ready to wear,
in other forms of entertain-
ment uses,” Mr. Buono added.
The volume of physical
stores occupied by retailers
that started online stood at
140,209 square feet this year
through the end of October, up
from 15,435 square feet in
2012, according to real-estate
data company CoStar Group,
which tracked 22 online retail-
ers that have stores in the
country’s top 300 enclosed
malls and lifestyle centers.
While this is a growing frac-
tion of the overall square foot-
age of retail space, it is still
small, representing just 0.05%
of the occupied rentable build-
ing area of these malls.
The leases tend to be at
least one year and don’t in-
clude occupants of pop-up
stores that are typically dedi-
cated to a regular rotation of
new retailers.
Not all landlords are bene-
fiting equally from online re-
tailers’ expansion from clicks
to bricks. These new tenants
are picky over where to open a
store and prefer to be in mar-
kets where they already have
online customers and where
there are potential new cus-
tomers. They usually stick
with class-A malls in areas
with large populations and
Shoppers visit Chicago’s Water Tower Place on Black Friday, typically the year’s busiest day for stores.
Class-A Sites Draw Buyers
BY ESTHER FUNG
Mall operators are in the
bargain bin, and some big-time
investors are picking them over.
Brookfield Property Part-
ners LP’s $14.8 billion pro-
posal to acquire the shares of
Chicago-based GGP Inc. that it
doesn’t already own is fueling
expectations that other opera-
tors of so-called Class A malls
are becoming acquisition tar-
gets—or will face pressure
from their investors to carve
up their best assets for sale.
Shares of A-mall real-estate
investment trusts Taubman
Centers Inc., Macerich Co. and
GGP all have risen between
14% and 24% since the start of
November after having under-
performed the broader REIT
market since August 2016.
“Two weeks ago everyone
hated malls—‘the mall is dead.’
But now the mall is alive,” said
Alexander Goldfarb, managing
director at investment bank
Sandler O’Neill & Partners.
The offer by Brookfield,
which already owns 34.4% of
GGP, has been anticipated
since another Brookfield affili-
ate acquired mall owner Rouse
Properties in 2016 and took it
private. There also are hopes
that Brookfield will sweeten
its current $23 per share offer
for GGP. Shares of GGP rose to
as much as $23.97 Monday on
news of the unsolicited bid.
“We’re pretty disappointed
in the offer price,” said Mat-
thew Werner, managing direc-
tor at Chilton Capital Manage-
ment LLC, whose mutual fund
has invested in shares of GGP
THE WALL STREET JOURNAL.
higher incomes.
“We look at each region
and we don’t have a mandate
to be mall-specific,” said Drew
Green, chief executive officer
of Indochino, a Vancouver,
British Columbia-based re-
tailer of custom-made suits.
The company recently opened
its 18th showroom in Seattle
and plans to open 18-20 more
in the U.S. next year. It has
stores in malls such as Tysons
Galleria in McLean, Va., and
King of Prussia Mall in Penn-
sylvania as well as street-front
locations in New York, San
Francisco and Boston.
“We definitely reject more
[offers of space] than we ap-
prove,” said Mr. Green, adding
that Indochino is profitable
and its stores break even in
six to 12 months.
Some emerging retailers
that started online, as well as
older retailers, said that hav-
ing a physical store minimizes
costs of shipping and returns.
Bargain Bin
Malls and regional shopping centers are lagging behind
the other major commercial property categories.
Total returns
10%
8
6
4 Apartments
2 Industrial
0
–2
–4
–6
–8
–10
J F M A M J
Source: Green Street Advisors
and had been gradually in-
creasing its holdings of the
mall REIT in the past year.
“Hopefully this is the begin-
ning of the negotiations. If it
is the final offer this would be
a negative for mall REITs.”
As recently as Nov. 2,
Brookfield Chief Financial Offi-
cer Bryan Kenneth Davis said
in an earnings call the com-
pany valued GGP at about $30
a share, up from about $29 in
the second quarter because of
a pickup in its earnings.
Shares of mall REIT Macer-
ich Co. also have shot up in
the past week, on expectations
of activism or a potential deal
after its board of directors on
Nov. 3 approved an increase in
severance pay for senior exec-
utives if there is a change in
control of the company.
PLOTS &
PLOYS
SL GREEN REALTY
Allianz to Buy Stake
In Times Square Site
SL Green Realty Corp. agreed
to sell a 43% stake in a Times
Square office tower to Allianz
Real Estate in a deal that values
the 1.86 million square foot
tower at $1.95 billion, the compa-
nies said.
The real-estate investment di-
vision of Allianz Group, of Ger-
many, is purchasing the stake in
1515 Broadway, home to the
headquarters of media giant Via-
com Inc. as well as the Minskoff
Theater on the ground level.
SL Green will realize cash pro-
ceeds of about $416 million,
which it will use “for other in-
vestment opportunities going
forward,” according to Isaac Zion,
the real-estate investment
trust’s co-chief investment offi-
cer. —Peter Grant
MALL REITS
Short Sellers Had
A Very Bad Week
Short sellers of mall operators
have gotten pounded over the
past week or so as expectations
of corporate takeouts and
heightened activist investor in-
terest in landlords of Class A
malls drives up share prices.
Short sellers of six of the
seven U.S. mall REITs suffered
declines in their positions of
$280 million from Nov. 4 to
Monday, according to data from
financial-analytics firm S3 Part-
ners. On Nov. 3, Macerich Co. , a
Santa Monica, Calif.-based mall
REIT, announced changes to
severance pay for senior execu-
tives in the event of a change in
control of the company. In the
past week, speculation that
Brookfield Property Partners
could make an offer for Chicago-
based mall REIT GGP Inc. and
news that activist investor Dan-
iel Loeb’s hedge fund Third Point
had acquired a 1.2% stake in
Macerich fueled gains in A-mall
REITs. —Esther Fung TASOS KATOPODIS/GETTY IMAGES
Equity REITs
Office
Regional malls
Shopping
centers
J A S O
THE WALL STREET JOURNAL.
Those expectations were
further fueled after hedge
fund Third Point, run by bil-
lionaire Dan Loeb, on Thurs-
day disclosed it had a stake of
1.73 million shares, or 1.2% of
the Santa Monica, Calif.-based
REIT as of Sept. 30. Macerich
didn’t respond to requests to
comment and Third Point de-
clined to comment.
Hedge fund Elliott Manage-
ment has also acquired a stake
in Bloomfield Hills, Mich.-based
Taubman Centers and has
been in talks with company ex-
ecutives, according to a person
familiar with the matter. Elliott
is known as an activist invest-
ment firm that often buys
stakes in companies and agi-
tates for changes, including
possible asset sales. Taubman
Centers declined to comment.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B9

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 THE WALL STREET JOURNAL. NY Wednesday, November 15, 2017 | B13

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Stuyvesant Town-Peter Cooper Village, an 11,200-unit complex in Manhattan, will display Rentlogic’s grade in its leasing office. " #! $%!& Reduce Your Tax Liability

 
  CONSERVATION EASEMENTS

Startup Grades Landlords

BY LAURA KUSISTO supplemented by in-person in- pany’s algorithm. He also forth. If you’re a billionaire
    
'()*+,-*.',(
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256.390.2777
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spections, and assigns them a plans to install an independent landlord or a slumlord, you CAPITAL WANTED
For most New York resi-
dents, it is easier to find out
whether the local hamburger
grade of A through F.
Renters can download a
browser extension that allows
21-person board made of ten-
ant advocates, real-estate ex-
ecutive and city officials.
don’t really care,” he said.
Landlord groups say they
have concerns about relying
THE MART Seeking cash-on-cash investment

joint has a mouse problem them to see buildings’ ratings Rentlogic operates only in on code violations, which ADVERTISE TODAY of $500K - $3M for 100% ROI in under 2
yrs. Funds needed to acquire several rapid
than if an apartment they are when they are searching for New York City, but Mr. Fox track not only big problems, (800) 366-3975 growth, high cash flow companies w/ rev
about to rent has no heat in apartments online on most said he plans to expand over but also minor ones such as a sales.mart@wsj.com over $3M/mo and over 30% net profit.
the winter or a cockroach in- real-estate websites. the next two years to most missing light switch cover or
investors@nationaldiversified.com
festation. Landlords have the option major North American cities. an absent sign. For more information visit:
Rentlogic, a New York- to purchase a plaque from Mr. Fox said he has received Mr. Fox said the results are wsj.com/classifieds
based startup, aims to create Rentlogic to display on their funding from friends, family weighted based on the sever- MISCELLANEOUS
more transparency by assign- property or in their leasing of- and venture capitalists and is ity of the violation.
ing letter grades to apartment fice, showing prospective ten- trying to raise an additional When Blackstone purchased  
   

buildings based on housing- ants they have received a high $3.5 million. Stuyvesant Town two years  
 
  !!!!!!!
code violations data, which grade. The price of the Mr. Fox founded the com- ago, the property had recently          
track issues such as climate plaques ranges from $1,000 to pany in 2013 based on his ex- improved from a “C” grade to  !!!!!! 
    
control, mold, bed bugs and $10,000 a year. perience working as a landlord a “B” grade.     
vermin infestations. The model is similar to the of a rental property in Toronto It had 122 violations over a      
 !" 
In its biggest deal yet, one used in the bond-ratings and with a problem landlord 2½-year period under the pre- 
#

  
Rentlogic recently signed an industry, in which bond issu- in New York City. vious owner.
agreement with Stuyvesant ers pay one of the ratings He found traditional forms Since Blackstone bought the TRAVEL
Town-Peter Cooper Village, firms to grade their debt. of tenant advocacy had limited property, it has accumulated
the 11,200-unit complex in Because Rentlogic makes persuasive power because they 37 violations and now has an
Manhattan that is owned by money only off landlords that had minimal effect on land- “A” grade, according to Rent- Save Up To 60%
Blackstone Group LP, to dis- receive a high grade, there lords’ bottom lines. logic. First & Business
play the complex’s rating in its could be incentive to produce “It ends up being a rent Rick Hayduk, chief execu- INTERNATIONAL
Major Airlines, Corporate Travel
leasing office. more landlord-friendly results. strike or a protest, which tive of StuyTown Property Never Fly Coach Again!
Rentlogic rates all apart- Yale Fox, Rentlogic’s founder, works really well sometimes Services, said the rating is an © 2017 Dow Jones & Company, Inc. www.cooktravel.net
ment buildings in the city us- said he recently hired a math- and not other times. It’s a lot “independent validation of our All Rights Reserved. (800) 435-8776
ing publicly available data ematician to audit the com- of people yelling back and efforts.”

ADVERTISEMENT

Business Real Estate & Services

To advertise: 800-366-3975 or WSJ.com/classifieds

  

 


     

      
 
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B14 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL.

NEW HIGHS AND LOWS

WSJ.com/newhighs
52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk % 52-Wk %
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session. PinnacleWest PNW 91.76 2.1
AlticeUSA ATUS 18.73 -8.1 EQT Midstream EQM 67.95 -1.7 SalientMidstream SMM 9.83 -2.1 GlbXSuperIncPfd SPFF 12.25 -0.3 Immucell ICCC 9.24 7.0 CytoriTherapWt CYTXW 0.02 -19.4
PortlandGenElec POR 49.81 1.8
AmberRoad AMBR 6.61 -2.9 EastmanKodak KODK 3.25 -6.9 SandRidgeMS SDT 1.18 -1.7 GSAccessHYCorpBd GHYB 49.41 -0.3 InfinityPropCas IPCC 108.40 1.2 DBVTechnologies DBVT 21.51 3.7
Tuesday, November 14, 2017 PrefApartment APTS 22.71 AmericanRenal ARA
1.5 9.91 -5.9 EtnVncFR IT EFT 14.04 -0.6 SpectraEnerPtrs SEP 39.78 0.1 GuggBS2025HYCpBd BSJP 24.58 -0.3 Insmed INSM 32.94 -5.4 DiscovComm C DISCK 15.23 -4.1
52-Wk % 52-Wk % 52-Wk % Progressive PGR 51.54 AnteroMidstream AMGP
0.4 16.84 -2.4 EtnVncSrFltRte EFR 14.01 -0.4 SpiritRealtyPfdA SRCpA 23.70 -0.6 GuggBS2027CorpBd BSCR 19.89 ... Intricon IIN 16.95 -1.0 Egalet EGLT 0.82 -1.4
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Prologis PLD 67.25 AnteroMidstream AM
0.2 26.12 -1.9 EtnVncSrIT EVF 6.33 -0.5 SummitMidstream SMLP 18.65 -2.8 iShiBdsMar18CpxFin IBCC 24.58 -0.1 Intuit INTU 155.78 0.2 ElbitImaging EMITF 2.32 -2.0
PublicServiceEnt PEG 51.73 ApolloSrFRFd AFT
2.1 16.15 -0.4 EldoradoGold EGO 1.15 ... THLCreditSrLoan TSLF 16.31 -0.5 HancockMultiSC JHSC 24.87 -0.1 iSectorsPostMPT PMPT 27.28 0.2 Eltek ELTK 0.53 -6.5
DominionEner D 83.04 1.2 LambWeston LW 54.01 1.2
Ardagh ARD 19.62 -0.9 ENB 34.81 -2.2 EnergyXXIGulfCoast EXXI 5.32 -34.3
NYSE highs - 113 DriveShackPfdB DSpB 26.01 0.2 LifeStorage LSI 89.63 ...
PulteGroup
PureStorage
PHM
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31.88
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0.6
AvonProducts AVP
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Enbridge
EnLinkMid ENLC 15.08 -1.0
TJX TJX
TeekayLNG PfdB TGPpB
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NuShEnhYd1-5Y NUSA
24.90
24.92
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Joint JYNT
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6.00 -1.2 FTD FTD 7.13 -5.0
DukeEnergy DUK 91.14 1.3 LiveNationEnt LYV 46.33 2.7
AberdeenGrChinaFd GCH 12.51 -0.1 RobertHalf RHI 53.71 BT Group
... BT 16.15 -0.1 EntercomCommsWi ETMw 10.27 3.7 3D Systems DDD 8.01 -2.9 PwrShSrLoanPtf BKLN 22.99 -0.1 Kingstone KINS 17.95 3.5 FrontierComm FTR 6.26 -7.2
ElPasoElectric EE 59.85 2.8 MI Homes MHO 34.42 0.6
Accenture ACN 145.50 0.7 Salesforce.com CRM 106.38 BellatrixExplor BXE
0.4 2.17 -6.1 Evertec EVTC 12.95 -2.2 TortoiseMLPFund NTG 15.98 -2.0 ProShUltTelecom LTL 36.93 -0.9 Kulicke&Soffa KLIC 28.71 20.4 FrontierCommPfA FTRPR 11.88 -3.8
EquityLife ELS 90.86 -0.1 MagnaChipSem MX 13.35 -1.2
AlliantEnergy LNT 45.23 2.0 SempraEnergy SRE 122.62 BlkRk2022GlbIncm BGIO
0.2 9.71 -0.7 EvolentHealth EVH 10.30 -8.3 TortoisePipe&En TTP 17.03 -2.6 ProShrUSRlEst SRS 28.50 0.3 LimelightNetworks LLNW 6.05 4.7 Geron GERN 1.74 -7.7
EvercoreA EVR 84.65 0.7 ManchesterUnited MANU 19.35 0.5 3.02 ...
Ameren AEE 64.70 1.8 SiteOneLandscape SITE 70.56 BlueApron
1.4 APRN FidcryClymrOppFd FMO 10.86 -1.5 TownsquareMedia TSQ 7.25 -3.6 LivaNova LIVN 82.12 1.2 HemisphereMedia HMTV 10.66 -2.7
EversourceEner ES 65.85 1.6 Marcus&Millichap MMI 31.37 2.6 ProShrUSUtil SDP 22.35 -2.2
AEP AEP 77.44 1.7 Square SQ 40.50 BuckeyePtrs
-0.6 BPL 47.53 -2.5 FirstBanCorp FBP 4.48 1.1 UnitedContinental UAL 56.60 -1.1 MicronTech MU 46.00 0.4 HenrySchein HSIC 65.28 0.5
Exelon EXC 42.46 1.5 MiXTelematics MIXT 11.52 1.9 SchwabSrtTRmUSTrsr SCHO 50.18 ...
AmerWaterWorks AWK 90.76 1.3 SunComms SUI 93.85 CBL AssocPfdE CBLpE
0.3 20.15 -1.0 FT MLP&Energy FEI 13.68 -2.0 WstAstCpLoanFd TLI 10.41 0.3 MonsterBev MNST 62.80 0.7 HighlandSrLoan SNLN 18.23 -0.1
FidNatlFin FNF 40.12 2.9 NRG Energy NRG 29.06 0.5 TeucriumCornFund CORN 16.75 -1.1
Amphenol APH 89.16 0.6 TE Connectivity TEL 93.83 CBL AssocPfdD CBLpD
0.5 22.15 -0.7 FT NewOppsMLP FPL 11.00 -2.1 WesternGasEquity WGP 35.77 0.3 Nathan's NATH 97.30 -2.0 HoughtonMifflin HMHC 8.05 -3.5
FirstIndRlty FR 32.30 -0.1 NRG Yield C NYLD 20.15 1.5 VanEckHiIncmInfra YMLI 12.74 -1.8
AquaAmerica WTR 37.12 1.8 TRI Pointe TPH 17.96 CNX Coal
1.3 CNXC 12.56 -1.8 FT SrFR Incm FCT 12.65 -0.3 WesternGasPtrs WES 43.85 -1.2 NatlEnerSvsWt NESRW 0.67 -3.3 INC Research INCR 34.05 -7.0
FirstEnergy FE 35.06 2.5 NRG Yield A NYLD.A 19.91 1.0 VangdTelecom VOX 83.39 -0.7
Toll Bros TOL 47.10 CardinalHealth CAH
2.2 56.69 -2.2 FT SrFR2022 FIV 9.04 -1.4 OssenInnovation OSN 3.61 33.5 Immersion IMMR 5.76 2.9
AristaNetworks ANET 228.86 0.9 WideOpenWest WOW 10.19 -11.6 VirtusGlovistaEM EMEM 24.69 -0.5
GTT Comm GTT 37.60 0.5 NTTDoCoMo DCM 25.06 0.3 CenterCoastMLP CEN 9.14 -1.9 GabelliGlbSmRt GGZr 0.21 -9.5 0.88 -5.0
AtmosEnergy ATO 90.78 1.1 TransUnion TRU 55.00 0.9 Willbros WG 1.13 -16.8 PinnacleEnt PNK 28.47 2.4 Innodata INOD
Gallagher AJG 65.12 1.8 NamTaiProperty NTP 12.73 3.3 14.31 -6.1
Avangrid AGR 52.65 2.6 GlobusMedical GMED 38.04 1.3 Navistar pfD NAVpD 18.00 2.9
TsakosEnergyPfdD TNPpD
TwoHarborsPfdA TWOpA
25.93
28.17
CenturyLink
0.9
ChannelAdvisor ECOM
1.2
CTL
8.35 -1.2
GameStop
GeneralElec
GME
GE
15.85 -0.1
17.46 -5.9
WorthingtonInds WOR NYSE American highs - 4
40.22 -3.8 PwrShDWA Util PUI
PwrShRuss1000Low USLB
29.71 1.5
30.21 0.6
InovioPharma INO
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4.20 -5.3
24.98 -0.1
BCE BCE 48.46 0.5 GreatPlainsEner GXP 34.03 1.0 NewIrelandFundRt IRLr 0.31 3.7
BeazerHomes BZH 21.71 3.4 HanoverIns THG 107.18 0.2 NewJerseyRscs NJR 45.08 1.6
TysonFoods TSN 76.62
ClearBridgeAmEn CBA
0.6
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7.43
12.54
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GenesisEnergy GEL
Glaukos GKOS
21.30 -3.6
28.63 -4.5
NYSE Arca highs - 29 Ashford
Birks
AINC
BGI
83.53 2.1
2.70 ...
PreformedLine PLPC 76.15 2.4 iSh1-3YTreasuryBd SHY
LaureateEduc LAUR
84.12 ...
10.65 -2.1
BlkRkMuniIncm BBF 15.80 0.4 US BancorpPfdA USBpA 903.75 -2.4 Qualys QLYS 58.40 -0.1
HawaiianElec HE 37.37 1.4 NewRelic NEWR 54.97 1.1 ClearbridgeEngyMLP EMO 10.53 -1.2 GSK GSK 34.86 -0.3 CSOPFTSEChinaA50 AFTY 18.44 -0.6 TrioTech TRT 7.42 -2.2 LifePointHealth LPNT 43.05 -2.2
CBRE Group CBG 42.23 ... Valhi VHI 4.88 4.2 RCI Hospitality RICK 29.49 1.4
HollyFrontier HFC 43.27 2.4 NexPointResidentl NXRT 29.21 6.7 ClipperRealty CLPR 9.66 -6.9 GS MLPEnergyRen GER 5.70 -2.9 DirexHmbldrBull3 NAIL 76.50 3.0 WirelessTel WTT 2.25 7.2 MartinMidstream MMLP 13.20 -4.9
CMS Energy CMS 50.71 1.9 VarianMed VAR 109.71 1.0 RMR Group RMR 56.05 1.1
HomeDepot HD 168.14 1.6 NextEraEnergy NEE 158.55 1.0 CobaltIntlEner CIE 0.41 -4.4 GS MLP IncmOpp GMZ 8.14 -3.0 DirexUtilBl3X UTSL 34.14 3.6 MatthewsIntl MATW 56.95 -1.4
VMware VMW 122.63 0.5 Radware RDWR 19.71 0.7
CantelMedical CMD
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WEC Energy WEC 69.58 1.7 Amcon DIT 85.80 -3.2 Roku ROKU 48.80 -13.5
ChinaGreenAg CGA 1.52 8.4 IDACORP IDA 98.04 2.0 NorthstarRltyEur NRE 14.40 0.5 CommunityHlthSys CYH 4.09 -0.9 GuggS&P500EWUtil RYU 90.79 1.0
27.79 -0.7 HeclaMining HL 3.63 -4.6 StarBulkNts22 SBLKZ 24.60 0.2 MinervaNeurosci NERV 4.80 4.0
Coca-Cola KO 47.48 1.5 WW Ent WWE AsteriasBiotherap AST 2.20 -2.1
IONGeophysical IO 15.30 1.7 OaktreeSpecNts24 OSLE 25.26 0.3 EngGr-Cmg CIG 1.96 -3.9 InvescoCreditOpps VTA 11.35 0.1 GuggInsider NFO 61.02 0.1 NCS Multistage NCSM 15.01 -22.2
XcelEnergy XEL 51.85 2.0 BlkRkMD Muni BZM 13.66 -0.5 StarsGroup TSG 22.15 0.9
CommunityHlthcr CHCT 29.16 3.7 Insperity NSP 108.45 -0.6 Oppenheimer A OPY 24.90 0.4 COPEL ELP 6.99 -2.8 4.28 -0.5 GuggS&P500EWRlEst EWRE 28.67 -0.1 0.35 -8.0
InvescoSeniorIncm VVR Synopsys SNPS 88.08 -0.1 NII Holdings NIHD
ConEd ED 89.01 1.5 INXN 56.91 0.2 OwensCorning OC 83.44 0.5 CRH Medical CRHM 1.50 -7.6
Cott COT 16.53 1.0
InterXion
IronMountain IRM 41.18 ... PBF Energy PBF 32.65 4.1
NYSE lows - 129 Culp
CushingTotRetFd SRV
CULP 26.15
10.33
...
-2.1
JohnsonControls JCI
JustEnergy JE
35.62 -0.3
4.43 -2.8
GuggSolar TAN
iShU.S.RealEstate IYR
25.21
83.00
1.0
-0.2
ComstockMining LODE 0.38 -3.2 TabulaRasaHlth TRHC 33.25 9.4 Neonode
Neuralstem
NEON
CUR
0.90 -3.1
0.91 -8.1
3.02 -7.2 TowerSemi TSEM 34.25 0.1
DCT Industrial DCT 60.98 ... JanusHenderson JHG 37.39 -0.6 PGT Innovations PGTI 15.38 2.7 AZZ AZZ 43.25 -0.2 DieboldNixdorf DBD 16.93 -5.0 iShU.S.Utilities IDU 142.28 1.2 ContangoO&G MCF
KayneAnderson KED 14.10 -0.1 USA Tech USAT 7.80 3.3 NeuroMetrix NURO 1.58 -1.6
DTE Energy DTE 115.70 1.2 JonesLang JLL 151.13 1.3 PNM Resources PNM 44.90 2.4 Adecoagro AGRO 8.40 -8.4 Duff&PhelpsUtil DUC 8.83 -1.6 iShMSCIHongKong EWH 25.71 ... eMagin EMAN 1.63 3.0
KayneAnEnerTRFd KYE 9.28 -3.3 USA Truck USAK 17.62 3.6 NuanceComms NUAN 14.26 -3.2
DaqoNewEnergy DQ 44.49 6.7 KB Home KBH 28.69 0.7 PhoenixNewMedia FENG 6.87 17.1 AllerganPfdA AGNpA 608.74 -1.3 Duff&PhelpsSelEn DSE 5.19 -3.3 HancockUtils JHMU 29.74 1.8 FT EnerIncome FEN 21.54 -2.0
KayneAnMLPInv KYN 14.69 -2.3 UTStarcom UTSI 3.23 0.6 NumereX NMRX 3.40 -2.0
KayneAnMidstrEner KMF 12.52 -2.2 JPM US Dividend JDIV 25.11 0.4 IMPAC Mortgage IMH 10.67 2.7 OFSCapital OFS 11.80 -0.5
VascularBiogenics VBLT 9.00 10.1
KeyEnergySvcs KEG 8.20 -4.8 JPM USQualFactor JQUA 24.93 ... IntlTowerHill THM 0.36 -6.9 OPKOHealth OPK 4.55 -12.4
VeriSign VRSN 111.71 ...
Inuvo INUV 0.70 -4.9
Mutual Funds | WSJ.com/fundresearch
KinderMorgan KMI 17.27 -0.2 KraneZacksNewChina KFYP 44.18 -2.2 Vodafone VOD 30.61 5.6 ObalonTherap OBLN 7.72 -1.3
Net YTD Net YTD KinderMorganPfdA KMIpA 36.00 0.8 PwrShInvGrdCpBd PFIG 26.70 ... Network1Techs NTIP 2.60 -33.0 OptiNose OPTN 15.01 -9.8
Fund NAV Chg %Ret Fund NAV Chg %Ret Weibo WB 113.63 3.3
KnotOffshore KNOP 19.85 -5.5 PwrShS&P500HiDiv SPHD 41.96 0.1 NeubrgBermMLPIncm NML 8.15 -2.9 ParkerVision PRKR 1.20 -6.0
WestellTech WSTL 3.84 4.2
Old Westbury Fds MuLTAdml 11.68 -0.01 5.9 LendingClub LC 4.14 -1.9 PwrShS&P500LoVol SPLV 47.39 0.6 RegionalHlthProp RHE 0.20 -26.5 Patterson PDCO 32.17 -0.1
Wingstop WING 40.51 1.9
Explanatory Notes Data provided by LrgCpStr 14.84 -0.02 15.7 MuLtdAdml 10.94 -0.01 2.4 LomaNegra LOMA 20.80 -1.5 PwrShS&P500xRate XRLV 32.82 0.1 UnvlSecInstr UUU 1.30 -3.7
ZAGG ZAGG 20.95 1.5 ProQR Therap PRQR 2.90 -13.7
Oppenheimer Y MuShtAdml 15.76 -0.01 1.2 MFS GvMkTr MGF 4.78 -0.8 PwrShS&P500Mom SPMO 34.84 -0.2 RISE Education REDU 10.21 -4.5
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
DevMktY NA ... NA PrmcpAdml r135.35 -0.18 24.4 MFS Intermd MIN 4.12 0.3 ProShS&P500xHlth SPXV 53.77 ... Nasdaq highs - 69 Nasdaq lows - 99 RadiusHealth RDUS 24.66 -4.9
IntGrowY 42.80 +0.24 23.4 REITAdml r 120.68 -0.23 6.1 MRC Global MRC 14.61 -7.0 ProShrUltraUtil UPW 54.08 2.1 22.98 2.9 RedHillBio RDHL 4.82 -3.1
are total returns, assuming reinvestment of all distributions and after subtracting AltairEngg ALTR
SmCapAdml 68.05 -0.19 11.2 MSG Networks MSGN 16.40 -2.1 AMC Networks AMCX 46.89 -0.1 RenminTianli ABAC 2.88 -8.9
SPDRS&P1500ValTilt VLU 103.18 -3.6
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. P STBondAdml 10.41 ... 1.2 MacquarieInfr MIC 64.84 -1.1 SPDRS&PHlthCareEqp XHE 64.76 -0.1
AptoseBiosci APTO 2.20 -4.4
AcadiaHealthcare ACHC 27.44 -2.2 RevolutionLight RVLT 3.74 -1.2
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date AtlanticaYield AY 25.99 ...
Parnassus Fds STIGradeAdml 10.66 ... 2.1 MechelPfd MTLp 0.80 -22.8 Advaxis ADXS 2.91 -7.1 RiminiStreet RMNI 7.22 -14.7
return. 3-YR%RET is trailing three-year return annualized. SPDR US LC Low Vol LGLV 92.26 0.1 CMSevenStarAcqnRt CMSSR 0.40 -6.5
ParnEqFd 44.16 -0.09 13.3 TotBdAdml 10.75 +0.01 3.2 NOW DNOW 10.36 -3.6 AlcentraCapital ABDC 7.13 -1.6 root9B RTNB 0.28 -41.0
UtilitiesSelSector XLU 56.91 1.2 CadenceDesign CDNS 44.83 0.2
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e PIMCO Fds Instl TotIntBdIdxAdm 21.92 +0.01 2.0 NationalGrid NGG 58.80 ... VanEckVietnam VNM 16.45 0.1
AmCapSeniorFloat ACSF 10.35 0.5 SabraHealthcare SBRA 18.48 3.2
CareerEducation CECO 13.22 0.5
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, AllAsset NA ... NA TotIntlAdmIdx r 29.75 -0.04 23.1 Netshoes NETS 6.86 -27.7 VangdUtilities VPU 124.94 1.2
AmerOutdoor AOBC 12.87 -1.7 SalemMedia SALM 4.65 -4.0
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r Cavium CAVM 77.60 -0.2
TotRt 10.26 +0.01 4.7 TotStAdml 64.42 -0.14 16.4 NewellBrands NWL 27.90 -1.5 AmTrustFinSvcs AFSI 9.02 -4.6 ScanSource SCSC 35.50 -4.4
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not CboeGlobalMkts CBOE 116.91 0.7
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
PIMCO Funds A
IncomeFd NA
TxMIn r
... NA ValAdml
14.08 -0.01
39.56 -0.09
22.3
11.2
NexaResources NEXA
NuSTAREnergy NS
15.75 -3.4
29.55 -4.7
NYSE Arca lows - 35 ChinaCeramics CCCL 3.60 19.0
AquaMetals
AquinoxPharm AQXP
AQMS 2.98 -16.2
10.23 -1.0
SearsHoldingsWt SHLDW
SearsHoldings SHLD
0.35 -10.0
3.71 -7.5
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. AlerianMLPETF AMLP 10.15 -1.7 ChinaInternet CIFS 50.67 2.9 ArcadiaBiosci RKDA 0.23 -6.3
PIMCO Funds D WdsrllAdml 68.40 -0.32 10.8 NuSTAR GP NSH 15.16 -5.0 SonusNetworks SONS 6.91 -0.3
ColumbiaDivFixed DIAL 19.82 -0.2 ChromaDex CDXC 5.99 4.8 ArchrockPtrs APLP 12.20 -5.0
IncomeFd NA ... NA WellsIAdml 65.17 +0.02 7.9 NuvCreditStrat JQC 8.05 -1.0 Sunworks SUNW 0.98 -19.1
DirexSilverMinBl2 SHNY 8.38 -1.3 Cognex CGNX 140.94 0.2 BAND 20.00 -1.0
Tuesday, November 14, 2017 PIMCO Funds Instl WelltnAdml 73.51 -0.08 11.1 NuvEnerMLPTR JMF 10.10 -2.2 Bandwidth SynergyPharm SGYP 2.01 -16.8
ETFMG PrimeJrSilver SILJ 10.30 -1.8 ConcertPharm CNCE 19.31 0.5 BIOC 0.63 -1.1
IncomeFd NA ... NA WndsrAdml 78.75 -0.19 14.7 NuvFRIncmFd JFR 10.77 -3.4 Biocept TESARO TSRO 84.42 -4.1
Net YTD Net YTD Net YTD ETRACSMthPay2xLev DVHL 19.64 -0.4 CSX-LinksCrudeOil USOI 27.58 7.3
PIMCO Funds P VANGUARD FDS NuvFR OppFd JRO 10.57 -1.2 BlackRockCapInvt BKCC 6.68 -1.5 TeleNav TNAV 4.80 -1.0
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret
ETRACSMthlyPay2x SMHD 16.55 -1.3 EducDev EDUC 14.10 -1.8 BroadwindEnergy BWEN 2.45 -3.1
IncomeP NA ... NA DivdGro 26.37 -0.04 14.3 NuvHiIncmDec18 JHA 9.86 -0.2 TherapixBiosci TRPX 4.26 -5.5
A E
Fed TF A p 11.97 -0.01 3.2 Price Funds HlthCare r 208.21 -0.68 15.8 NuvSrIncmFd NSL 6.41 -0.6 FrankFTSEBrazil FLBR 23.37 -2.1 EnphaseEnergy ENPH 2.44 2.2 CHF Solutions CHFS 3.60 -11.9 TileShop TTS 8.08 2.4
IncomeA p NA ... NA BlChip 97.16 -0.08 33.8 INSTTRF2020 22.47 -0.01 11.6 PHH PHH 10.92 ... FrankFTSECanada FLCA 24.80 -0.6 Everbridge EVBG 29.99 3.1 CM Finance CMFN 8.00 -1.8 Travelzoo TZOO 5.85 -2.5
American Century Inv Edgewood Growth Instituti RisDv A p 60.60 -0.16 16.1 FirstComSC FCCO 24.50 0.4
CapApp 29.67 -0.02 13.3 INSTTRF2025 22.73 -0.02 13.0 PPDAI PPDF 12.75 -1.1 FrankFTSEChina FLCH 25.25 -1.5 CMSevenStarAcqnRt CMSSR 0.29 -6.5 TremontMortgage TRMT 15.56 -2.0
Ultra 44.90 -0.21 28.7 EdgewoodGrInst 29.54 +0.01 33.0 FrankTemp/Franklin C
FrankFTSEEurHdg FLEH 24.46 -0.2 FiveBelow FIVE 58.69 0.6
EqInc 34.64 -0.07 11.6 INSTTRF2030 22.91 -0.03 14.3 PIMCOCAMuniIII PZC 10.20 -1.0 CTI Ind CTIB 3.70 -1.3 trivago TRVG 7.06 -0.4
American Funds Cl A Income C t NA ... NA GRAVITY GRVY 80.11 0.5
EqIndex 69.37 -0.15 16.9 INSTTRF2035 23.10 -0.04 15.5 PIMCO HiIncm PHK 7.32 -1.7 FrankFTSEFrance FLFR 24.87 -0.2 CapitalaFinNts22 CPTAL 24.70 0.3 UltragenyxPharm RARE 44.02 -6.4
AmcpA p 31.76 -0.08 18.4 F FrankTemp/Temp A Growth 70.13 -0.10 31.7 INSTTRF2040 23.29 -0.04 16.8 PioneerFR PHD 11.45 -0.2 FrankFTSEJapan FLJP 25.72 -0.6 Garmin GRMN 61.28 0.3 Cenveo CVO 0.85 -9.4 VangdSTGovBd VGSH 60.45 ...
AMutlA p 41.09 -0.08 13.2
Federated Instl GlBond A p NA ... NA GladstoneInvt GAIN 11.17 0.9
HelSci 73.11 -0.62 23.7 INSTTRF2045 23.43 -0.04 17.3 PitneyBowesNt43 PBIpB 22.65 -4.8 FrankFTSEJapanHdg FLJH 25.67 -0.2 Chimerix CMRX 4.17 -0.5 VeecoInstr VECO 15.25 -1.3
BalA p 27.41 -0.03 12.2
StraValDivIS 6.42 +0.02 11.8 Growth A p NA ... NA InstlCapG 39.55 -0.04 35.3 IntlVal 39.12 -0.04 23.2 PitneyBowes PBI 9.63 -3.5 FrankFTSEMexico FLMX 24.61 -0.5 HailiangEduc HLG 40.59 0.6 CleanEnerFuels CLNE 1.96 -2.5 VistaGenTherap VTGN 0.75 -3.8
BondA p 12.91 +0.01 3.1 FrankTemp/Temp Adv
Fidelity IntlStk 19.12 -0.01 25.0 LifeGro 33.03 -0.04 15.6 PPlus CZN-1 PIY 11.66 -29.9 FrankFTSETaiwan FLTW 25.32 -0.2 HamiltonLane HLNE 31.72 1.5 CoherusBioSci CHRS 8.40 -0.5 WMIH WMIH 0.61 -6.1
CapIBA p 62.75 +0.02 11.6 GlBondAdv p NA ... NA
500IdxInst 90.36 -0.19 17.2 IntlValEq 15.07 -0.01 17.6 LifeMod 26.85 -0.02 12.3 RR Donnelley RRD 7.47 -0.5 GlbX MLP&Energy MLPX 12.59 -1.7 HollysysAuto HOLI 27.19 10.6 ConsldComm CNSL 13.11 -3.4 WPP WPPGY 83.71 0.2
CapWGrA 52.13 -0.09 20.8
500IdxInstPrem 90.36 -0.19 17.2 MCapGro 91.57 +0.03 21.5 PrmcpCor 26.73 -0.05 20.5 RangerEnergySvcs RNGR 8.56 -3.3 GlbX MLP MLPA 9.22 -1.8 II-VI IIVI 47.95 -0.6 Criteo CRTO 34.60 -1.7 WestmorelandCoal WLB 1.61 -5.7
EupacA p 56.77 -0.06 28.5
500IdxPrem 90.35 -0.20 17.2
H MCapVal 31.32 -0.07 7.8 SelValu r 32.97 -0.05 14.6 RedwoodTrust RWT 14.49 -1.1 GlbXSilverMiners SIL 30.36 -0.5 IPG Photonics IPGP 229.65 0.7 Curis CRIS 0.89 -6.0 XenonPharms XENE 2.20 -5.4
FdInvA p 63.34 -0.16 18.5
ExtMktIdxPrem r 62.02 -0.16 13.0 Harbor Funds N Horiz 54.76 -0.10 26.4 STAR 27.07 -0.03 15.1
GwthA p 51.38 -0.16 22.2
HI TrA p 10.35 -0.02 5.7
IntlIdxPrem r 42.91 +0.04 21.6 CapApInst 76.00 -0.21 34.2 N Inc 9.48 +0.01 3.5 STIGrade 10.66 ... 2.0
SAIUSLgCpIndxFd 13.85 -0.03 17.1 IntlInst r 69.20 +0.03 18.5
Exchange-Traded Portfolios | WSJ.com/ETFresearch
ICAA p 40.98 -0.15 14.4 OverS SF r 11.26 -0.01 24.1 TgtRe2015 15.89 ... 9.5
Harding Loevner
IncoA p 23.32 -0.03 10.0 TMktIdxF r 74.81 -0.16 16.4 R2020 23.15 -0.01 13.4 TgtRe2020 31.52 -0.02 11.5
IntlEq NA ... NA
N PerA p 44.85 -0.03 26.9 TMktIdxPrem 74.79 -0.17 16.4 R2025 17.85 -0.01 15.2 TgtRe2025 18.47 -0.02 13.0
NEcoA p 47.62 -0.04 32.5 USBdIdxInstPrem 11.58 +0.01 3.0 I R2030 26.30 -0.02 16.7 TgtRe2030 33.36 -0.04 14.2 Closing Chg YTD
R2035 Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
NwWrldA 66.07 -0.29 28.4 Fidelity Advisor I 19.22 -0.02 18.0 TgtRe2035 20.49 -0.03 15.5
Invesco Funds A
SmCpA p 55.96 -0.09 21.7 NwInsghtI 33.32 -0.07 24.8 R2040 27.62 -0.03 19.0 TgtRe2040 35.27 -0.06 16.7 VangdS&P500 VOO 236.74 –0.24 15.3
EqIncA 11.20 -0.03 7.2 Value Tuesday, November 14, 2017 Closing Chg YTD
TxExA p 13.02 -0.01 4.9 Fidelity Freedom 38.70 -0.05 15.0 TgtRe2045 22.15 -0.04 17.3
ETF Symbol Price (%) (%) VangdST Bond BSV 79.44 0.04 –0.0
WshA p 45.22 -0.10 14.7 FF2020 16.66 -0.03 12.9
J PRIMECAP Odyssey Fds TgtRe2050 35.64 -0.06 17.3 Closing Chg YTD
VangdSTCpBd VCSH 79.59 –0.05 0.3
FF2025 14.42 -0.02 13.9 Growth r 35.99 -0.02 25.7 TgtRetInc 13.55 -0.01 7.0 ETF Symbol Price (%) (%) VangdFTSEAWxUS VEU 53.36 –0.15 20.8
VangdSC VB 142.02 –0.25 10.1
B FF2030 18.05 -0.03 16.2 John Hancock Class 1 Principal Investors TotIntBdIxInv 10.96 ... 2.0 AlerianMLPETF AMLP 10.15 –1.74 –19.4 VangdGrowth VUG 137.55 –0.22 23.4
VangdTotalBd BND 81.53 0.12 0.9
Baird Funds Freedom2020 K 16.67 -0.02 NS LSBalncd 15.91 -0.01 12.7 DivIntlInst 13.81 -0.01 25.5 WellsI 26.90 +0.01 7.9 –0.50
CnsmrDiscSelSector XLY 92.76 0.09 14.0 VangdHlthCr VHT 150.45 18.7 VangdTotIntlBd BNDX 54.89 0.13 1.1
AggBdInst 10.88 +0.01 3.8 Freedom2025 K 14.42 -0.02 NS
LSGwth 17.06 -0.03 16.1 Prudential Cl Z & I Welltn 42.56 -0.05 11.0
CnsStapleSelSector XLP 54.78 0.35 5.9 VangdHiDiv VYM 82.54 –0.10 8.9 VangdTotIntlStk VXUS 55.42 –0.11 20.8
CorBdInst 11.23 +0.01 4.1 Freedom2030 K 18.05 -0.04 NS
John Hancock Instl TRBdZ 14.49 +0.01 5.5 WndsrII 38.54 -0.18 10.7
EnSelectSectorSPDR XLE 68.14 –1.62 –9.5 VangdIntermBd BIV 84.09 0.15 1.2 VangdTotalStk VTI –0.18
BlackRock Funds A Freedom2035 K 15.14 -0.03 NS DispValMCI 23.92 -0.03 11.4 VANGUARD INDEX FDS 132.37 14.8
GlblAlloc p 20.20 -0.02 11.1 Freedom2040 K 10.64 -0.02 NS
JPMorgan Funds S 500 238.55 -0.51 17.1
FinSelSectorSPDR XLF 26.11 –0.04 12.3 VangdIntrCorpBd VCIT 87.23 0.05 1.8 VangdTotlWrld VT 72.03 –0.15 18.1
MdCpVal L 39.73 +0.05 9.1 GuggS&P500EW RSP 97.00 –0.05 12.0 VangdLC VV 118.37 –0.22 15.6 VangdValue VTV –0.24
BlackRock Funds Inst Fidelity Invest Schwab Funds ExtndIstPl 201.04 -0.50 13.0 101.42 9.0
Balanc 23.61 -0.06 13.8 JPMorgan R Class S&P Sel 40.33 -0.09 17.2 SmValAdml 54.67 -0.13 6.5 HealthCareSelSect XLV 80.95 –0.41 17.4 VangdMC VO 149.35 0.06 13.5 WisdTrEuropeHdg HEDJ 64.22 –0.70 11.9
EqtyDivd 22.93 -0.05 12.3
IndSelSectorSPDR XLI 70.63 –0.27 13.5
GlblAlloc 20.33 -0.02 11.4 BluCh 87.71 -0.29 32.9 CoreBond 11.63 +0.01 3.5 TotBd2 10.71 +0.01 3.1 VangdMC Val VOE 106.53 0.04 9.6 WisdTrJapanHdg DXJ 57.64 –0.52 16.4
HiYldBd 7.76 -0.02 6.7 Contra 126.67 -0.21 29.5 T TotIntl 17.78 -0.03 23.0 iShIntermCredBd CIU 109.32 0.05 1.0 VangdREIT VNQ 85.18 –0.21 3.2 XtrkrsMSCIEAFE DBEF 31.60 –0.60 12.6
StratIncOpptyIns 9.91 -0.02 3.8 ContraK 126.68 -0.20 29.6 L TIAA/CREF Funds TotSt 64.39 -0.14 16.3 iSh1-3YCreditBond CSJ 104.86 –0.01 –0.1
Bridge Builder Trust CpInc r 10.21 -0.03 9.8 Lazard Instl EqIdxInst 19.31 -0.04 16.4 VANGUARD INSTL FDS iSh3-7YTreasuryBd IEI 122.81 0.07 0.2
CoreBond NA ... NA DivIntl 41.10 +0.02 23.4 EmgMktEq 19.40 -0.10 22.2 IntlEqIdxInst 20.13 -0.01 21.6 BalInst 34.02 -0.03 11.0 iShCoreMSCIEAFE IEFA 64.60 –0.05 20.5

D
GroCo 182.83 -0.51 33.7 Loomis Sayles Fds
GrowCoK 182.79 -0.51 33.8 LSBondI 14.12 -0.02 6.5
Tweedy Browne Fds
GblValue
DevMktsIndInst 14.10 -0.01
28.20 -0.07 12.6 DevMktsInxInst 22.04 -0.02
22.4
22.4
iShCoreMSCIEmgMk
iShCoreMSCITotInt
IEMG
IXUS
55.48
61.63
–0.54 30.7
–0.24 22.1
BANKRATE.COM® MMA, Savings and CDs
Dimensional Fds InvGB 7.91 ... 3.4 Lord Abbett A ExtndInst 81.47 -0.20 13.0 iShCoreS&P500 IVV 259.58 –0.20 15.4
5GlbFxdInc 11.01 ... 2.1 InvGrBd 11.27 +0.01 3.9 ShtDurIncmA p 4.26 -0.01 2.0 V GrwthInst 70.80 -0.15 24.7 iShCoreS&P MC IJH 182.37 –0.12 10.3 Average Yields of Major Banks Tuesday, November 14, 2017
EmgMktVa 29.83 -0.20 26.3 LowP r 52.50 -0.06 14.6 Lord Abbett F VANGUARD ADMIRAL InPrSeIn 10.51 +0.01 2.2 iShCoreS&P SC IJR 73.46 –0.03 6.8
52.46 -0.06 14.7 ShtDurIncm 4.26 ... 2.3 Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
EmMktCorEq 22.23 -0.10 29.9 LowPriStkK r 500Adml 238.58 -0.52 17.2 InstIdx 235.39 -0.50 17.2 iShS&PTotlUSStkMkt ITOT 58.96 –0.24 15.0
IntlCoreEq 14.09 ... 23.0 MagIn 105.68 -0.49 22.5
M BalAdml 34.01 -0.03 11.0 InstPlus 235.41 -0.51 17.2 iShCoreUSAggBd AGG 109.10 0.10 1.0 National average
IntlVal 19.81 -0.05 20.9 OTC 108.70 -0.44 36.4 CAITAdml 11.80 -0.01 4.7 InstTStPlus 57.79 -0.12 16.4 iShSelectDividend DVY 95.55 0.35 7.9 Savings 0.11 0.07 0.07 0.13 0.19 0.35 0.47 0.45 0.92
IntSmCo 21.21 +0.02 24.0 Puritn 23.11 -0.05 15.8 Metropolitan West CapOpAdml r154.03 -0.40 24.0 MidCpInst 40.86 +0.02 14.7 iShEdgeMSCIMinEAFE EFAV 71.28 0.06 16.4 Jumbos 0.22 0.07 0.08 0.14 0.22 0.38 0.52 0.47 0.97
IntSmVa 23.06 -0.02 21.9 SrsEmrgMkt 21.30 -0.15 35.7 TotRetBd 10.65 +0.01 2.7 EMAdmr 36.82 -0.21 26.1 MidCpIstPl 201.51 +0.10 14.7 iShEdgeMSCIMinUSA USMV 51.85 0.19 14.7
US CoreEq1 21.94 -0.04 15.2 SrsGroCoRetail 17.95 -0.04 34.4 TotRetBdI 10.65 +0.01 3.0 EqIncAdml 76.16 -0.06 13.6 SmCapInst 68.05 -0.19 11.2
iShGoldTr IAU 12.31 0.24 11.1
Weekly change
US CoreEq2 20.78 -0.05 12.9 SrsIntlGrw 16.17 ... 26.3 TRBdPlan 10.02 +0.01 3.1 ExtndAdml 81.47 -0.20 13.0 STIGradeInst 10.66 ... 2.1
iShiBoxx$InvGrCpBd LQD 119.94 0.03 2.4 Savings -0.01 0.00 0.00 0.00 -0.01 -0.01 0.00 -0.01 -0.02
US Small 35.65 -0.05 6.1 SrsIntlVal 10.76 +0.02 17.5 MFS Funds Class I GNMAAdml 10.49 ... 1.9 TotBdInst 10.75 +0.01 3.2
iShiBoxx$HYCpBd HYG 86.68 –0.43 0.2 Jumbos 0.00 0.00 0.00 0.00 0.00 0.00 0.01 -0.02 -0.02
US SmCpVal 37.85 -0.11 1.7 TotalBond 10.65 +0.01 3.7 ValueI 40.34 +0.01 12.6 GrwthAdml 70.80 -0.14 24.6 TotBdInst2 10.71 +0.01 3.1
iShJPMUSDEmgBd EMB 114.49 –0.08 3.9
US TgdVal 24.63 -0.11 3.4 Fidelity Selects MFS Funds Instl HlthCareAdml r 87.84 -0.29 15.9 TotBdInstPl 10.75 +0.01 3.2
iShMBSETF 0.11
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Dodge & Cox
38.74 -0.14 12.0 Biotech r 210.66 -3.66 21.0 IntlEq
First Eagle Funds Mutual Series
25.32 +0.08 25.0 HYCorAdml r 5.89 -0.01 5.9 TotIntBdIdxInst 32.89 +0.01
InfProAd 25.79 +0.03 2.1 TotIntlInstIdx r118.96 -0.18
2.1
23.2 iShMSCI ACWI
MBB
ACWI
106.64
70.14
0.3
–0.20 18.5 Consumer Savings Rates
iShMSCIBrazilCap EWZ 37.74 –3.11 13.2
Balanced 108.14 -0.32 8.1 GlbA 60.30 -0.10 11.1 GlbDiscA NA ... NA IntlGrAdml 93.98 -0.17 39.6 TotItlInstPlId r118.98 -0.19 23.2 Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed-
... 3.6 TotStInst 64.43 -0.14 16.4 iShMSCI EAFE EFA 68.94 –0.07 19.4
GblStock 13.70 -0.09 15.0 FPA Funds ITBondAdml 11.38 erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
Income 13.81 +0.01 3.9 FPACres 34.72 ... 7.7 O ITIGradeAdml 9.78 +0.01 4.0 ValueInst 39.56 -0.09 11.2 iShMSCI EAFE SC SCZ 62.11 0.23 24.6
of 2014 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
Intl Stk 45.60 -0.24 19.7 FrankTemp/Frank Adv Oakmark Funds Invest LTGradeAdml 10.56 +0.03 8.8 iShMSCIEmgMarkets EEM 45.88 –0.67 31.0
W iShMSCIEurozone EZU 43.10 0.44 24.6
not an indication of financial strength or weakness. Information is believed to be reliable, but not
Stock 199.24 -0.90 11.2 IncomeAdv NA ... NA EqtyInc r 33.77 -0.09 11.0 MidCpAdml 184.96 +0.10 14.7
iShMSCIJapan EWJ 58.51 –0.53 19.8 guaranteed.
DoubleLine Funds FrankTemp/Franklin A Oakmark 84.27 -0.29 16.3 MuHYAdml 11.42 ... 7.2 Western Asset
TotRetBdI NA ... NA CA TF A p 7.48 ... 5.6 OakmrkInt NA ... NA MuIntAdml 14.16 -0.01 4.5 CorePlusBdI NA ... NA iShNasdaqBiotech IBB 305.05 –1.62 14.9 High yield savings
iShNatlMuniBd MUB 110.68 –0.05 2.3
Bank/rank Yield Bank/rank Yield
iShRussell1000Gwth IWF 130.86 –0.11 24.7
iShRussell1000 IWB 143.43 –0.19 15.2
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   earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per

   
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THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B15

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low. EnelAmericas ENIA 9.98 -0.22 Ingredion INGR 130.63 1.50 NewOrientalEduc EDU 84.10 -0.48 SantanderCons SC 15.78 -0.15 US Bancorp USB 51.83 0.15 CaesarsEnt CZR 12.40 ... MarketAxess MKTX 173.94 -0.58
Market listed securities. Prices are composite dd-Indicates loss in the most recent EnelChile ENIC 5.65 -0.03 ICE ICE 67.30 0.22 NY CmntyBcp NYCB 12.97 0.19 Sasol SSL 30.04 -0.31 UnitedTech UTX 118.80 1.73 Carlyle CG 20.65 -0.53 Marriott MAR 123.06 2.67
EnelGenChile EOCC 25.82 -0.08 InterContinentl IHG 56.27 -0.08 t NewellBrands NWL 28.04 -0.43 Scana SCG 44.50 -0.10 UnitedHealth UNH 211.71 -0.95 s CboeGlobalMkts CBOE 116.60 0.86 MarvellTech MRVL 20.12 -0.01
quotations that include primary market trades four quarters.
as well as trades reported by Nasdaq OMX FD-First day of trading. EnergyTransferEq ETE 16.65 -0.07 IBM IBM 148.89 0.49 NewfieldExpln NFX 29.82 -2.27 Schlumberger SLB 62.78 -2.26 UniversalHealthB UHS 97.00 -0.76 Celgene CELG 98.86 -2.30 MatchGroup MTCH 29.39 0.70
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing EnergyTransfer ETP 16.42 -0.38 IntlFlavors IFF 150.65 0.93 NewmontMin NEM 36.28 0.57 SchwabC SCHW 44.59 -0.01 UnumGroup UNM 52.81 -0.01 CentennialRsc CDEV 19.78 -0.31 Mattel MAT 18.54 0.90
Exchange, CBOE, National Stock Exchange, ISE standards Entergy ETR 87.42 0.78 IntlPaper IP 54.33 0.41 s NextEraEnergy NEE 158.40 1.62 ScottsMiracleGro SMG 98.15 -0.95 VEREIT VER 8.13 -0.10 Cerner CERN 65.07 -0.40 MaximIntProducts MXIM 53.66 0.20
and BATS. lf-Late filing EnterpriseProd EPD 24.06 -0.30 Interpublic IPG 18.64 -0.03 NielsenHoldings NLSN 35.97 -0.20 SealedAir SEE 45.10 0.12 VF VFC 69.92 0.25 CharterComms CHTR 336.81 -6.91 MelcoResorts MLCO 24.64 -0.49
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq Equifax EFX 109.31 0.52 InvitatHomes INVH 23.50 -0.07 Nike NKE 55.98 0.07 SemicondctrMfg SMI 7.90 -1.16 Visa V 111.98 0.58 CheckPoint CHKP102.40 -0.40 MercadoLibre MELI 262.49 -4.59
s EquityLife ELS 90.45 -0.12 s IronMountain IRM 41.00 0.01 NiSource NI 27.58 0.26 s SempraEnergy SRE 122.23 0.27 VailResorts MTN 229.73 0.40 ChinaLodging HTHT 124.66 -4.11 MicrochipTech MCHP 91.01 -0.01
companies based on market capitalization. requirements.
Underlined quotations are those stocks with t-NYSE bankruptcy EquityResdntl EQR 69.98 -0.17 IsraelChemicals ICL 3.94 -0.12 NobleEnergy NBL 26.67 -0.86 SensataTech ST 47.31 -0.07 Vale VALE 9.77 -0.33 CincinnatiFin CINF 74.06 0.76 s MicronTech MU 45.80 0.20
large changes in volume compared with the v-Trading halted on primary market. EssexProp ESS 256.82 -1.81 ItauUnibanco ITUB 12.37 -0.32 Nokia NOK 4.83 -0.03 ServiceCorp SCI 34.79 -0.01 ValeroEnergy VLO 81.37 0.70 Cintas CTAS 149.20 1.85 Microsemi MSCC 52.91 0.29
issue’s average trading volume. vj-In bankruptcy or receivership or EsteeLauder EL 126.02 -0.30 JPMorganChase JPM 97.27 -0.59 NomuraHoldings NMR 5.71 ... ServiceMaster SERV 46.75 -0.14 Vantiv VNTV 69.82 0.43 CiscoSystems CSCO 34.04 0.09 Microsoft MSFT 84.05 0.12
Boldfaced quotations highlight those issues being reorganized under the EverestRe RE 226.13 -2.42 JacobsEngg JEC 57.94 -1.88 Nordstrom JWN 39.16 0.44 ServiceNow NOW 124.48 -0.55 s VarianMed VAR 109.34 1.10 CitrixSystems CTXS 85.22 0.96 t Middleby MIDD 110.64 1.48
whose price changed by 5% or more if their Bankruptcy Code, or securities s EversourceEner ES 65.81 1.05 JamesHardie JHX 15.81 -0.16 NorfolkSouthern NSC 126.98 -0.64 ShawComm B SJR 22.43 -0.15 Vectren VVC 68.20 1.27 s Cognex CGNX 137.73 0.23 Momo MOMO 29.19 -0.69
previous closing price was $2 or higher. assumed by such companies. s Exelon EXC 42.39 0.63 s JanusHenderson JHG 36.82 -0.22 NorthropGrum NOC 300.46 1.98 SherwinWilliams SHW 389.13 -0.58 Vedanta VEDL 18.77 -0.53 CognizantTech CTSH 74.97 0.41 Mondelez MDLZ 42.53 0.48
ExtraSpaceSt EXR 86.34 -0.53 J&J JNJ 139.49 -0.27 Novartis NVS 83.03 0.32 ShinhanFin SHG 43.44 0.23 VeevaSystems VEEV 60.79 -0.70 Coherent COHR 300.07 -1.25 s MonsterBev MNST 62.63 0.43
ExxonMobil XOM 82.24 -0.65 t JohnsonControls JCI 35.89 -0.11 NovoNordisk NVO 49.84 0.08 Shopify SHOP 98.97 0.20 Ventas VTR 65.04 -0.35 Comcast A CMCSA 36.86 -0.39 Mylan MYL 37.85 0.28
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and FMC FMC 93.01 -1.87 s JonesLang JLL 150.11 1.95 Nucor NUE 54.86 -0.84 SimonProperty SPG 160.51 0.20 Verizon VZ 44.22 -0.53 CommerceBcshrs CBSH 55.66 -0.18 NXP Semi NXPI 115.50 -0.15
changes in the closing prices from 4 p.m. the previous day. FactSet FDS 195.22 -0.67 JuniperNetworks JNPR 26.43 1.07 OGE Energy OGE 35.85 0.73 SmithAO AOS 58.82 -0.10 VistraEnergy VST 19.18 0.23 CommScope COMM 33.84 -0.10 Nasdaq NDAQ 75.97 0.56
FederalRealty FRT 131.81 0.92 KAR Auction KAR 48.14 -0.11 ONEOK OKE 51.38 -0.83 Smith&Nephew SNN 35.74 0.22 s VMware VMW 122.47 0.63 Copart CPRT 35.88 ... NatlInstruments NATI 44.38 -0.27
Net Net FedEx FDX 219.94 -1.49 KB Fin KB 51.06 0.24 OccidentalPetrol OXY 67.32 -0.61 Smucker SJM 108.19 1.70 VornadoRealty VNO 76.14 0.17 CoStar CSGP 299.05 2.62 NektarTherap NKTR 39.56 2.46
Tuesday, November 14, 2017 RACE 109.91 -0.53 COST 171.44 -0.02
Sym Close Chg Sym Close Chg Ferrari KKR KKR 19.20 -0.03 Olin OLN 35.60 -0.94 Snap SNAP 12.57 0.17 VoyaFinancial VOYA 41.29 0.25 Costco NetApp NTAP 45.62 -0.38
Net Stock Stock
FiatChrysler FCAU 17.50 0.19 KT KT 14.00 0.09 OmegaHealthcare OHI 28.34 0.17 VulcanMatls VMC 123.92 -0.07 Ctrip.com CTRP 45.30 -1.18 Netease NTES 298.56 -3.60
SnapOn SNA 156.68 0.61
Stock Sym Close Chg s BCE BCE 48.35 0.25 CentraisElBras EBR 5.85 -0.30 FibriaCelulose FBR 15.30 -0.11 KSCitySouthern KSU 104.25 -0.87 Omnicom OMC 67.66 -0.26 WABCO WBC 143.55 -1.21 CypressSemi CY 16.78 -0.14 Netflix NFLX 195.71 0.63
SOQUIMICH SQM 57.93 -1.30
BHPBilliton BHP 41.69 -1.01 t CenturyLink CTL 14.40 -0.93 s FidNatlFin FNF 39.87 1.13 Kellogg K 65.18 1.42 Oracle ORCL 49.20 -0.20 Sony SNE 46.05 -0.03 s WEC Energy WEC 69.53 1.18 CyrusOne CONE 63.70 -0.42 Neurocrine NBIX 74.17 -0.47
NYSE BHPBilliton BBL 36.50 -0.87 Chemours CC 50.60 -1.31 FNFV Group FNFV 17.50 ... KeyCorp KEY 18.25 0.33 Orange ORAN 16.44 -0.02 Southern SO 52.31 0.49 W.P.Carey WPC 71.33 -0.36 DISH Network DISH 50.51 -0.35 NewsCorp B NWS 15.55 -0.05
BP BP 39.61 -0.27 Chevron CVX 116.92 -0.31 FidNatlInfo FIS 93.43 0.58 KeysightTechs KEYS 44.00 -0.32 OrbitalATK OA 132.78 -0.11 SoCopper SCCO 42.90 -1.03 Wabtec WAB 73.53 -1.73 DentsplySirona XRAY 65.39 -0.41 NewsCorp A NWSA 15.27 0.04
ABB ABB 25.31 -0.17 BRF BRFS 12.69 ... WUBA 72.39 -0.61 DiamondbkEner FANG 108.27 -2.70
ChinaEastrnAir CEA 26.11 1.38 58.com KilroyRealty KRC 73.97 -0.51 Orix IX 84.95 -0.15 SouthwestAir LUV 53.75 0.50 Wal-Mart WMT 91.09 0.10 Nordson NDSN 125.28 1.47
AECOM ACM 34.21 -1.42 t BT Group BT 16.22 -0.01 FirstAmerFin FAF 54.68 0.72 t DiscovComm C DISCK 15.27 -0.66
ChinaLifeIns LFC 17.01 -0.41 KimberlyClark KMB 114.55 -0.86 Oshkosh OSK 85.81 0.30 t SpectraEnerPtrs SEP 40.10 0.05 WasteConnections WCN 70.69 0.54 NorthernTrust NTRS 92.64 0.18
AES AES 10.84 0.02 BWX Tech BWXT 60.84 0.26 FDC 16.88 -0.25 s OwensCorning OC 82.64 DiscovComm A DISCA 16.28 -0.71
ChinaMobile CHL 50.80 -0.39 FirstData KimcoRealty KIM 18.92 -0.03 0.44 SpectrumBrands SPB 103.60 -1.41 WasteMgt WM 82.38 0.24 NorwegCruise NCLH 55.10 -0.17
Aflac AFL 84.27 0.32 BakerHughes BHGE 30.51 -1.37 ChinaPetrol SNP 71.68 -1.84 FirstRepBank FRC 92.04 0.45 t KinderMorgan KMI 17.43 -0.03 PG&E PCG 56.61 -0.28 DollarTree DLTR 93.45 -0.24
SpiritAeroSys SPR 80.85 0.60 Waters WAT 195.64 1.00 NVIDIA NVDA 214.18 1.55
AT&T T 33.72 -0.45 Ball BLL 39.99 -0.32 s FirstEnergy FE 35.05 0.84 E*TRADE ETFC 43.87 0.27
ChinaSoAirlines ZNH 39.16 1.01 Knight-Swift KNX 38.75 0.71 PLDT PHI 31.88 0.30 Sprint S 5.93 -0.10 Watsco WSO 164.19 -0.19 OReillyAuto ORLY 215.89 1.72
AbbottLabs ABT 55.01 -0.29 BancoBilbaoViz BBVA 8.35 0.02 ChinaTelecom CHA 48.92 -1.08 FleetCorTech FLT 178.68 -2.74 Kohl's KSS 42.20 1.02 PNC Fin PNC 132.00 -0.23 EXACT Sci EXAS 58.33 0.11
s Square SQ 39.74 -0.24 WellCareHealth WCG 200.11 -1.54 OldDomFreight ODFL 119.03 0.79
AbbVie ABBV 94.75 -0.37 BancodeChile BCH 87.60 -1.49 ChinaUnicom CHU 15.10 -0.41 Fluor FLR 45.66 -1.02 KoninklijkePhil PHG 39.10 0.31 POSCO PKX 70.50 -0.79 EastWestBncp EWBC 57.23 0.20
s Accenture ACN 144.96 1.04 BancoMacro BMA 97.61-16.36 StanleyBlackDck SWK 164.11 0.14 WellsFargo WFC 54.04 0.32 ON Semi ON 21.42 -0.16
Chipotle CMG 280.90 3.40 FomentoEconMex FMX 87.80 0.81 KoreaElcPwr KEP 17.15 -0.02 PPG Ind PPG 114.35 -0.20 StarwoodProp STWD 21.72 0.07 Welltower HCN 68.09 -0.23 eBay EBAY 35.22 -0.63 OpenText OTEX 33.23 -0.18
AcuityBrands AYI 164.31 0.78 BcoSantChile BSAC 29.93 -0.17 Chubb CB 150.69 -0.65 FordMotor F 12.02 -0.14 Kroger KR 22.02 ... PPL PPL 37.07 0.44 ElbitSystems ESLT 142.52 -1.72
StateStreet STT 91.31 0.52 WestPharmSvcs WST 100.85 -0.78 PTC PTC 64.28 -0.30
Adient ADNT 75.03 -1.19 BancoSantander SAN 6.39 -0.03 ChunghwaTel CHT 33.86 0.17 ForestCIty A FCE.A 25.50 0.13 Kyocera KYO 69.92 1.27 PVH PVH 126.83 -0.64 ElectronicArts EA 112.27 0.26
Statoil STO 20.24 -0.45 WestarEnergy WR 55.49 0.77 Paccar PCAR 68.67 -0.65
AdvanceAuto AAP 95.72 13.44 BanColombia CIB 37.61 0.27 Church&Dwight CHD 45.74 0.39 Fortis FTS 37.89 0.17 LATAMAirlines LTM 12.94 -0.12 PackagingCpAm PKG 112.71 0.35 Equinix EQIX 481.05 -1.07
Steris STE 88.26 0.73 WestAllianceBcp WAL 54.05 0.30 PacWestBancorp PACW 44.94 -0.26
AdvSemiEngg ASX 6.23 0.08 BankofAmerica BAC 26.24 -0.16 Cigna CI 197.14 -0.47 Fortive FTV 72.67 0.07 L Brands LB 49.27 0.32 PaloAltoNtwks PANW 138.81 0.14 t WesternGasEquity WGP 36.37 Ericsson ERIC 5.95 -0.06
STMicroelec STM 23.94 0.08 0.10 Paychex PAYX 65.37 0.27
Aegon AEG 5.97 0.01 BankofMontreal BMO 76.91 -0.16 CimarexEnergy XEC 117.52 -4.27 FortBrandsHome FBHS 64.69 0.26 LG Display LPL 13.10 -0.22 ParkHotels PK 28.38 -0.39 t WesternGasPtrs WES 44.07 ErieIndemnity A ERIE 122.34 0.64
Stryker SYK 155.95 0.20 -0.54 PayPal PYPL 74.49 0.46
AerCap AER 50.15 -0.46 BankNY Mellon BK 51.85 0.83 Citigroup C 71.53 -0.46 Franco-Nevada FNV 84.64 1.25 LINE LN 43.36 0.12 ParkerHannifin PH 179.67 -1.63 Exelixis EXEL 25.11 -0.94
SumitomoMits SMFG 7.79 -0.06 WesternUnion WU 19.65 0.13 People'sUtdFin PBCT 18.28 0.07
Aetna AET 171.83 -1.19 BkNovaScotia BNS 65.29 -0.05 CitizensFin CFG 38.07 0.87 FranklinRscs BEN 40.83 0.02 L3 Tech LLL 184.71 -0.41 ParsleyEnergy PE 25.96 -0.81 Expedia EXPE 122.09 1.81
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SunLifeFinancial SLF 38.90 -0.03 WestpacBanking WBK 24.24 -0.35 Priceline PCLN 1719.50 -2.65
AgilentTechs A 67.46 0.33 Bard CR BCR 333.34 0.26 s Coca-Cola KO 47.43 0.71 FreseniusMed FMS 49.17 0.54 s LambWeston LW 53.39 0.61 PembinaPipeline PBA 35.22 -0.55 ExpressScripts ESRX 60.25 -0.63
SuncorEnergy SU 35.77 -0.53 WestRock WRK 58.66 -0.18 Qiagen QGEN 30.85 0.08
AgnicoEagle AEM 45.40 0.33 BarrickGold ABX 14.01 0.06 Coca-Cola Euro CCE 39.34 -0.08 GGP GGP 23.95 -0.10 LasVegasSands LVS 67.27 0.02 Pentair PNR 68.02 -0.25 F5Networks FFIV 121.22 0.37
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Agrium AGU 105.38 -1.25 BaxterIntl BAX 64.46 0.05 Coca-Cola Femsa KOF 67.86 -0.66 s Gallagher AJG 65.10 1.16 Lazard LAZ 46.50 -1.19 PepsiCo PEP 115.76 1.72 Facebook FB 178.07 -0.70
SynchronyFin SYF 32.56 -0.03 WheatonPrecMet WPM 20.51 0.30 Qualcomm QCOM 66.00 -0.49
AirProducts APD 162.15 -0.61 BectonDicknsn BDX 220.46 0.46 ColgatePalm CL 73.46 -0.24 Gap GPS 26.73 0.01 Lear LEA 174.93 0.57 PerkinElmer PKI 71.61 0.34 Fastenal FAST 47.47 0.24
Syngenta SYT 92.30 ... Whirlpool WHR 161.00 -0.67 RandgoldRscs GOLD 92.07 1.50
AlaskaAir ALK 61.68 -0.04 Berkley WRB 67.78 -0.35 ColonyNorthStar CLNS 12.46 -0.14 GardnerDenver GDI 28.66 -0.75 Leggett&Platt LEG 45.57 -0.24 Perrigo PRGO 86.00 -0.80 FifthThirdBncp FITB 28.61 0.42
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TAL Education TAL 28.76 -0.80 WilliamsPartners WPZ 35.18 -1.05 RossStores ROST 64.47 -0.44
Alcoa AA 41.87 -1.26 BerkHathwy B BRK.B 183.34 -1.06 SABESP SBS 8.94 -0.15 Gazit-Globe GZT 9.65 0.26 Lennar A LEN 58.56 0.34 PetroleoBrasil PBR 9.68 -0.94 Fiserv FISV 129.73 1.57
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AlexandriaRlEst ARE 126.28 -0.33 BerryGlobal BERY 58.55 -0.02 ConagraBrands CAG 35.87 1.03 GeneralDynamics GD 200.22 0.09 Lennar B LEN.B 48.85 0.09 PetroleoBrasilA PBR.A 9.20 -0.86 Flex FLEX 18.24 -0.03
Telus TU 37.96 -0.10 WooriBank WF 41.20 -0.30 Ryanair RYAAY 112.41 1.00
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TIM Part TSU 17.34 -0.38 Wyndham WYN 107.54 1.24 SBA Comm SBAC 165.53 0.33
Alleghany Y 577.03 0.66 Bio-RadLab A BIO 253.22 -1.21 ConocoPhillips COP 51.23 -1.34 GeneralMills GIS 54.12 1.15 LeucadiaNatl LUK 25.32 -0.33 PhilipMorris PM 102.72 -0.79 Fortinet FTNT 40.02 -0.33
t TJX TJX 67.94 -2.82 XPO Logistics XPO 73.22 0.74 SEI Investments SEIC 64.91 0.24
Allegion ALLE 82.90 -1.04 BlackKnight BKI 46.30 0.15 s ConEd ED 88.96 1.34 GeneralMotors GM 43.00 -0.57 LibertyProperty LPT 44.90 0.03 Phillips66 PSX 92.83 -0.49 s XcelEnergy XEL 51.80 Gaming&Leisure GLPI 36.56 -0.08
TableauSftwr DATA 71.18 -0.06 1.01 Sina SINA 106.50 0.35
Allergan AGN 171.82 -2.59 BlackBerry BB 10.40 -0.29 ConstBrands A STZ 218.09 -2.67 Genpact G 31.06 -0.04 EliLilly LLY 82.49 0.15 PinnacleFoods PF 55.00 0.97 s Garmin GRMN 60.75 0.17
TaiwanSemi TSM 41.86 -0.15 Xerox XRX 28.08 -0.09 SS&C Tech SSNC 39.77 -0.04
AllianceData ADS 226.17 1.97 BlackRock BLK 470.45 5.34 ContinentalRscs CLR 44.57 -1.26 GenuineParts GPC 86.01 0.72 LincolnNational LNC 73.44 -0.46 s PinnacleWest PNW 91.71 1.92 GileadSciences GILD 71.15 -1.70
s AlliantEnergy LNT 45.18 0.88 Blackstone BX 31.20 -0.56 Tapestry TPR 40.20 -0.24 Xylem XYL 66.34 0.31 SVB Fin SIVB 213.28 1.02
Cooper COO 236.78 -0.29 Gildan GIL 30.09 -0.08 LionsGate A LGF.A 30.59 -0.10 PioneerNatRscs PXD 152.81 -4.11 YPF YPF 22.37 -0.79 Goodyear GT 29.36 0.13 ScrippsNetworks SNI 78.07 -0.81
AllisonTransm ALSN 42.11 -0.16 BoardwalkPipe BWP 14.37 0.07 t GSK TargaResources TRGP 41.56 -0.73
GRFS 23.18 0.38
Corning GLW 31.70 0.04 GSK 34.98 -0.11 LionsGate B LGF.B 29.36 -0.19 PlainsAllAmPipe PAA 20.01 -0.35 YumBrands YUM 79.43 -0.01 Grifols Seagate STX 37.49 -0.17
Allstate ALL 99.94 0.50 Boeing Target TGT 60.09 0.31
BA 261.76 -0.66 Coty COTY 16.95 0.20 GlobalPayments GPN 101.34 1.74 s LiveNationEnt LYV 46.16 1.23 PlainsGP PAGP 20.64 -0.24 YumChina YUMC 41.96 -0.17 GpoFinGalicia GGAL 50.27 -1.33 SeattleGenetics SGEN 57.20 0.08
AllyFinancial ALLY 25.84 0.19 BorgWarner BWA 52.07 0.04 TataMotors TTM 31.62 -0.37 HD Supply HDS 34.58 -0.40
Credicorp BAP 203.00 1.91 GoDaddy GDDY 48.65 0.08 LloydsBanking LYG 3.54 0.01 PolarisIndustries PII 120.90 0.62 ZTO Express ZTO 16.56 -0.36 Shire SHPG 139.27 0.95
t AlticeUSA ATUS 19.40 -1.70 BostonProps BXP 124.78 -1.15 TechnipFMC FTI 27.16 -1.24 HAS 95.98 -0.85
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Altria MO 65.73 -0.11 BostonSci BSX 28.32 -0.13 GoldmanSachs GS 237.24 -3.03
TeckRscsB TECK 21.20 -0.64 t HenrySchein HSIC 66.84 0.34
CrownCastle CCI 113.16 0.26 Loews L 49.94 0.05 Praxair PX 147.63 -0.52 ZimmerBiomet ZBH 112.21 1.15 SiriusXM SIRI 5.35 -0.15
AlumofChina ACH 18.20 0.17 Braskem BAK 28.27 -1.30 CrownHoldings CCK 58.93 -0.52 Graco GGG 129.35 0.53 Lowe's LOW 79.23 1.70 PrincipalFin PFG 68.33 0.30
TelecomArgentina TEO 30.86 -1.70 Hologic HOLX 39.62 -1.02
TelecomItalia TI 7.84 -0.22 Zoetis ZTS 69.90 1.02 Skyworks SWKS 111.21 0.91
Ambev ABEV 6.06 -0.06 Bristol-Myers BMY 61.25 0.26 Cullen/Frost CFR 94.96 -0.24 Grainger GWW 195.58 -0.21 LyondellBasell LYB 103.74 -0.45 Procter&Gamble PG 88.87 -0.13 JBHunt JBHT 102.47 -0.11
TelecomItalia A TI.A 6.56 -0.01 Splunk SPLK 68.35 0.61
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TeledyneTech TDY 178.94 -0.43
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TelefonicaBras VIV 14.65 -0.21
Symantec SYMC 28.10 0.13
AmCampus ACC 42.69 -0.03 BrookfieldInfr BIP 43.78 0.01 DXC Tech DXC 95.76 -1.04 t GrupoTelevisa TV 19.50 -0.48 MSCI MSCI 125.12 -0.34 Prudential PUK 48.67 -0.12 Ansys ANSS 149.43 -1.44 IHSMarkit INFO 43.89 0.90 s Synopsys SNPS 87.76 -0.06
s AEP AEP 77.39 1.26 Brown&Brown BRO 50.00 0.60 Danaher DHR 93.19 -0.14 Guidewire GWRE 79.88 0.06 Macerich MAC 64.76 0.69 s PublicServiceEnt PEG 51.72 1.06 Telefonica TEF 9.92 0.02 ASML ASML 180.34 1.49 s IPG Photonics IPGP 226.27 1.58
TelekmIndonesia TLK 29.86 -0.15
TD Ameritrade AMTD 49.64 -0.08
AmerExpress AXP 93.76 -0.14 Brown-Forman A BF.A 59.27 0.49 Darden DRI 82.85 0.01 HCA Healthcare HCA 76.05 -1.66 Macy's M 19.70 0.37 PublicStorage PSA 212.92 -0.33 Abiomed ABMD 193.75 -1.38 IRSA Prop IRCP 56.46 ...
Tenaris TS 28.71 -0.68
T-MobileUS TMUS 56.54 0.10
AmericanFin AFG 106.10 0.07 Brown-Forman B BF.B 59.12 0.94 DaVita DVA 54.66 -0.33 HCP HCP 27.02 -0.21 MagellanMid MMP 65.30 -0.92 s PulteGroup PHM 31.77 0.20 ActivisionBliz ATVI 64.03 0.41 IcahnEnterprises IEP 52.87 -0.86
TER 43.35 TRowePrice TROW 94.48 1.07
AmerHomes4Rent AMH 21.85 -0.27 t BuckeyePtrs BPL 48.48 -1.26 Deere DE 132.88 0.97 HDFC Bank HDB 92.96 -0.65 MagnaIntl MGA 52.82 -0.22 QuantaServices PWR 35.75 -0.97 Teradyne -0.50 AdobeSystems ADBE 181.32 -0.53 Icon ICLR 112.35 -0.89 TakeTwoSoftware TTWO 118.88 0.62
AIG AIG 61.46 -0.54 Bunge BG 66.22 -0.09 DellTechs DVMT 81.49 -0.32 HP HPQ 21.36 0.19 Manpower MAN 125.98 -0.02 QuestDiag DGX 92.42 0.42 TevaPharm TEVA 11.75 0.01 AdvMicroDevices AMD 11.12 0.03 Illumina ILMN 206.05 -3.09 Tesla TSLA 308.70 -6.70
AmerTowerREIT AMT 149.49 -0.55 BurlingtonStrs BURL 97.35 -0.90 DelphiAuto DLPH100.29 4.72 HSBC HSBC 48.32 0.06 ManulifeFin MFC 20.95 -0.12 QuintilesIMS Q 103.48 0.57 Textron TXT 53.57 -0.13 AkamaiTech AKAM 53.75 0.23 Incyte INCY 105.12 -2.09 TexasInstruments TXN 96.96 -0.07
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Ameriprise AMP 157.11 -0.21 s CBRE Group CBG 42.18 ... DeutscheBank DB 18.19 0.26 Hanesbrands HBI 19.25 0.02 MarathonPetrol MPC 62.87 0.67 RELX RELX 23.19 0.10 ThomsonReuters TRI 44.37 0.09 AlignTech ALGN 254.02 0.29 InteractiveBrkrs IBKR 54.05 0.15 Trimble TRMB 41.30 0.31
AmerisourceBrgn ABC 75.40 ... CBS A CBS.A 56.62 0.83 DevonEnergy DVN 38.23 -1.42 HarleyDavidson HOG 46.93 0.05 Markel MKL 1077.82 6.06 RPM RPM 51.46 -0.21 ThorIndustries THO 131.77 1.32 Alkermes ALKS 47.69 -1.48 s Intuit INTU 155.21 0.32 21stCenturyFoxA FOXA 28.03 -0.52
Ametek AME 69.49 0.60 CBS B CBS 56.41 0.49 Diageo DEO 136.42 0.47 Harris HRS 139.34 0.37 Marsh&McLen MMC 83.60 0.60 RSP Permian RSPP 36.07 -1.07 3M MMM 229.33 1.11 AlnylamPharm ALNY130.32 1.21 IntuitiveSurgical ISRG 390.97 -1.15 21stCenturyFoxB FOX 27.31 -0.51
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AnadarkoPetrol APC 48.05 -2.18 CGI Group GIB 53.32 0.35 DiscoverFinSvcs DFS 64.21 -0.79 HealthcareAmer HTA 30.65 -0.10 Masco MAS 39.04 0.15 RaymondJames RJF 83.03 -0.34 TimeWarner TWX 87.51 -0.98 Alphabet A GOOGL 1041.64 0.44 JD.com JD 38.90 -2.44
s Toll Bros UltSoftware ULTI 198.37 0.37
Andeavor ANDV 105.69 -0.46 CIT Group CIT 47.84 1.93 Disney DIS 103.17 -1.57 Heico HEI 90.14 -0.02 Mastercard MA 149.95 0.26 Raytheon RTN 183.94 -0.52 TOL 47.05 1.00 Altaba AABA 69.52 -0.75 JackHenry JKHY 113.10 0.25 UnivDisplay OLED 177.45 0.40
AndeavorLog ANDX 44.13 -1.01 s CMS Energy CMS 50.55 0.92 DolbyLab DLB 61.00 0.95 Heico A HEI.A 75.35 -0.35 McCormick MKC 98.58 1.62 RealtyIncome O 56.90 0.23 Torchmark TMK 85.18 0.49 Amazon.com AMZN 1136.84 7.67 JazzPharma JAZZ 134.24 -2.23 VEON VEON 3.79 0.07
AB InBev BUD 114.77 -1.14 CNA Fin CNA 54.67 0.25 DollarGeneral DG 83.25 -0.30 Helm&Payne HP 54.38 -2.00 McCormickVtg MKC.V 98.55 1.42 RedHat RHT 124.49 0.50 Toro TTC 61.84 -0.08 Amdocs DOX 63.79 1.25 JetBlue JBLU 19.63 0.68 s VeriSign VRSN 111.17 -0.01
AnnalyCap NLY 11.49 0.11 CNOOC CEO 137.81 -3.06 s DominionEner D 82.84 0.99 Herbalife HLF 65.03 0.18 McDonalds MCD 168.11 0.74 RegencyCtrs REG 66.91 0.23 TorontoDomBk TD 57.23 0.06 Amerco UHAL 363.63 -1.80 JunoTherap JUNO 53.86 -2.19 VeriskAnalytics VRSK 91.11 0.99
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Anthem ANTM 218.45 -0.01 CRH CRH 34.97 -0.14 Donaldson DCI 46.35 -0.04 Hess HES 44.91 -1.68 Medtronic MDT 79.16 -0.04 ReinsGrp RGA 149.73 -0.52 TotalSystem TSS 73.41 0.64 Amgen AMGN 170.13 -1.37 KraftHeinz KHC 79.38 -0.47 Viacom B VIAB 24.54 -0.18
Aon AON 143.54 1.65 CVS Health CVS 70.44 -1.04 DouglasEmmett DEI 40.65 0.14 HewlettPackard HPE 13.27 -0.21 Merck MRK 54.99 -0.11 RepublicSvcs RSG 63.92 0.01 ToyotaMotor TM 124.87 -0.80 AnalogDevices ADI 90.44 0.41 LKQ LKQ 37.46 0.24 Viacom A VIA 29.95 -0.20
Apache APA 41.88 -1.61 CabotOil COG 28.46 -0.60 Dover DOV 93.61 -0.18 Hilton HLT 72.91 0.29 MetLife MET 52.00 -0.16 ResMed RMD 84.22 0.22 TransCanada TRP 49.58 0.10 Apple AAPL 171.34 -2.63 LamResearch LRCX 208.64 -0.59 s Vodafone VOD 30.48 1.63
ApartmtInv AIV 45.23 -0.24 CalAtlantic CAA 52.13 0.32 DowDuPont DWDP 68.57 -1.51 s HollyFrontier HFC 42.84 0.99 MettlerToledo MTD 631.37 0.53 RestaurantBrands QSR 64.81 -0.41 TransDigm TDG 268.02 6.02 ApplMaterials AMAT 56.42 -0.61 LamarAdv LAMR 76.26 -0.03 t WPP WPPGY 85.02 0.20
ApolloGlbMgmt APO 29.62 0.43 CamdenProperty CPT 94.92 0.19 DrPepperSnap DPS 87.82 0.79 s HomeDepot HD 168.06 2.71 MichaelKors KORS 54.89 0.80 RioTinto RIO 48.00 -1.20 s TransUnion TRU 54.47 0.46 ArchCapital ACGL 95.56 -0.14 LibertyBroadbandC LBRDK 87.88 -1.25 WalgreensBoots WBA 70.59 0.22
s AquaAmerica WTR 37.09 0.65 CampbellSoup CPB 47.81 0.54 DrReddy'sLab RDY 35.48 -0.03 HondaMotor HMC 32.49 -0.32 MicroFocus MFGP 34.53 0.26 s RobertHalf RHI 53.51 -0.02 Travelers TRV 133.86 0.54 Atlassian TEAM 52.38 0.11 LibertyBroadbandA LBRDA 86.85 -1.86 s Weibo WB 112.21 3.63
Aramark ARMK 40.02 -2.83 CIBC CM 88.40 -0.45 s DukeEnergy DUK 91.09 1.21 s Honeywell HON 147.32 0.60 MidAmApt MAA 103.94 -2.09 Rockwell ROK 191.58 -0.96 TurkcellIletism TKC 9.10 0.09 Autodesk ADSK 123.87 -0.77 LibertyGlobal A LBTYA 29.35 -0.41 WesternDigital WDC 91.58 3.14
ArcelorMittal MT 27.66 -1.36 CanNtlRlwy CNI 80.18 -0.15 DukeRealty DRE 29.12 0.01 HormelFoods HRL 32.98 0.53 MitsubishiUFJ MTU 6.64 0.13 RockwellCollins COL 132.88 -0.49 TurquoiseHill TRQ 3.02 -0.06 ADP ADP 112.08 0.55 LibertyGlobal C LBTYK 28.34 -0.46 WillisTowers WLTW 162.03 0.54
ArcherDaniels ADM 39.79 0.05 CanNaturalRes CNQ 34.42 -1.64 ENI E 33.25 -0.16 s DR Horton DHI 47.64 0.55 MizuhoFin MFG 3.51 -0.07 RogersComm B RCI 52.98 0.61 Twitter TWTR 20.05 -0.12 Baidu BIDU 234.92 -2.45 LibertyLiLAC C LILAK 22.06 0.28 Workday WDAY 107.47 1.30
Arconic ARNC 23.20 -0.59 CanPacRlwy CP 171.83 -1.52 EOG Rscs EOG 102.47 -1.99 HostHotels HST 19.97 -0.06 MobileTeleSys MBT 11.11 0.18 Rollins ROL 45.29 -0.05 TylerTech TYL 171.91 1.02 BankofOzarks OZRK 43.78 0.22 LibertyLiLAC A LILA 22.04 0.08 WynnResorts WYNN 153.60 -1.64
s AristaNetworks ANET 227.10 1.95 Canon CAJ 38.36 -0.02 EQT EQT 60.60 -3.98 HuanengPower HNP 27.71 -0.26 MohawkInds MHK 267.14 2.12 RoperTech ROP 256.60 0.56 s TysonFoods TSN 76.07 0.48 Biogen BIIB 309.69 -6.02 LibertyQVC A QVCA 23.73 0.30 Xilinx XLNX 72.05 0.07
ArrowElec ARW 77.77 -0.30 CapitalOne COF 86.00 -0.95 t EQT Midstream EQM 68.08 -1.20 Hubbell HUBB 121.43 -0.33 MolsonCoors B TAP 80.52 -0.32 RoyalBkCanada RY 78.45 -0.12 UBS Group UBS 17.01 ... BioMarinPharm BMRN 81.41 0.35 LibertyVenturesA LVNTA 56.13 -0.58 Yandex YNDX 31.25 -0.37
AstraZeneca AZN 33.25 0.34 t CardinalHealth CAH 57.07 -1.26 EastmanChem EMN 90.24 -1.19 Humana HUM 239.56 -1.38 Monsanto MON 118.05 -0.10 RoyalBkScotland RBS 7.31 0.02 UDR UDR 39.99 0.05 Bioverativ BIVV 54.39 0.48 LibertyFormOne C FWONK 36.12 -0.66 ZebraTech ZBRA 104.99 0.05
Athene ATH 48.26 -0.13 Carlisle CSL 108.32 -0.78 Eaton ETN 76.89 -1.05 HuntingIngalls HII 237.53 -1.65 Moody's MCO 143.14 0.99 RoyalCaribbean RCL 123.51 -0.97 UGI UGI 48.71 0.40 bluebirdbio BLUE 158.35 3.80 LibertyFormOne A FWONA 34.42 -0.77 Zillow C Z 39.07 -0.05
s AtmosEnergy ATO 90.54 1.00 CarMax KMX 70.94 -1.41 EatonVance EV 51.31 0.42 Huntsman HUN 30.11 -0.58 MorganStanley MS 48.38 -0.25 RoyalDutchA RDS.A 63.80 -0.10 US Foods USFD 26.81 0.23 BrighthouseFin BHF 55.38 -0.61 LibertyBraves A BATRA 21.71 -0.51 ZG 39.28
Zillow A 0.08
Autohome ATHM 60.02 -1.17 Carnival CCL 66.02 0.04 Ecolab ECL 131.40 -0.24 HyattHotels H 69.55 -0.19 Mosaic MOS 23.00 -0.28 RoyalDutchB RDS.B 65.84 -0.08 UltraparPart UGP 21.39 -0.44 Broadcom AVGO 263.26 -1.75 LibertyBraves C BATRK 21.76 -0.53 ZionsBancorp ZION 46.49 1.22
Autoliv ALV 122.93 -0.32 Carnival CUK 66.27 0.12 Ecopetrol EC 11.70 -0.16 ICICI Bank IBN 9.53 0.07 MotorolaSol MSI 91.02 -0.35 SAP SAP 113.08 0.71 Unilever UN 57.08 -0.03 CA CA 32.31 -0.01 LibertySirius A LSXMA 40.48 -1.35
AutoZone AZO 607.63 12.37 Caterpillar CAT 137.54 1.01 EdisonInt EIX 82.64 1.54 ING Groep ING 18.11 -0.05 s NRG Energy NRG 28.92 0.14 S&P Global SPGI 159.30 1.27 Unilever UL 55.81 -0.05 CDK Global CDK 62.66 -0.60 LibertySirius C LSXMK 40.37 -1.47 NYSE AMER
Avalonbay AVB 187.51 -0.60 Celanese A CE 104.89 -0.91 EdwardsLife EW 105.15 -0.09 Invesco IVZ 34.47 -0.05 s NTTDoCoMo DCM 25.01 0.08 SINOPEC SHI 59.21 -0.93 UnionPacific UNP 116.23 -0.25 CDW CDW 67.17 -0.57 LincolnElectric LECO 86.38 0.04
s Avangrid AGR 52.56 1.35 Cemex CX 7.81 -0.10 EmersonElec EMR 60.74 -0.65 IDEX IEX 127.64 -0.32 NVR NVR 3325.67 25.67 SK Telecom SKM 25.11 0.05 t UnitedContinental UAL 57.20 -0.61 CH Robinson CHRW 80.37 0.01 LogitechIntl LOGI 34.68 -0.42 CheniereEnergy LNG 48.50 -0.78
AveryDennison AVY 108.17 0.23 CenovusEnergy CVE 10.40 -0.54 EnbridgeEnPtrs EEP 14.12 0.09 IllinoisToolWks ITW 158.54 0.93 t NationalGrid NGG 59.19 -0.01 SLGreenRealty SLG 100.04 -0.02 UnitedMicro UMC 2.56 -0.01 CME Group CME 140.20 0.05 LogMeIn LOGM 114.50 -1.10 CheniereEnerPtrs CQP 27.59 -0.12
AxaltaCoating AXTA 31.79 -0.13 Centene CNC 93.03 -1.33 t Enbridge ENB 34.97 -0.77 Infosys INFY 14.91 0.11 NatlOilwell NOV 32.27 -0.79 s Salesforce.com CRM 106.23 0.45 UPS B UPS 114.07 -0.74 CSX CSX 49.40 -0.35 lululemon LULU 64.93 0.33 CheniereEnHldgs CQH 26.13 -0.27
BB&T BBT 46.84 0.35 CenterPointEner CNP 29.95 0.32 Encana ECA 11.89 -0.37 Ingersoll-Rand IR 84.70 -0.06 NatlRetailProp NNN 42.53 -0.02 Sanofi SNY 44.65 0.01 UnitedRentals URI 144.87 0.26 s CadenceDesign CDNS 44.77 0.10 MKS Instrum MKSI 103.40 -0.75 ImperialOil IMO 31.32 -0.30

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B16 | Wednesday, November 15, 2017 THE WALL STREET JOURNAL.

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23409.47 t 30.23, or 0.13% Trailing P/E ratio 21.12 20.63 2578.87 t 5.97, or 0.23% Trailing P/E ratio 24.42 23.99 6737.87 t 19.72, or 0.29% Trailing P/E ratio * 26.13 23.37
High, low, open and close for each P/E estimate * 19.22 17.66 High, low, open and close for each P/E estimate * 19.37 18.05 High, low, open and close for each P/E estimate * 21.32 18.87
trading day of the past three months. Dividend yield 2.21 2.47 trading day of the past three months. Dividend yield 1.92 2.17 trading day of the past three months. Dividend yield 1.04 1.24
All-time high 23563.36, 11/08/17 All-time high: 2594.38, 11/08/17 All-time high: 6789.12, 11/08/17

Current divisor 0.14523396877348

23500 2580 6750
Session high
DOWN UP 23000 2550 6650
t

Session open Close

Close Open
t

22500 2520 6550

Session low

22000 2490 6450

65-day moving average

21500 2460 6350
65-day moving average
65-day moving average
21000 2430 6250

Bars measure the point change from session's open

20500 2400 6150
Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 840,227,769 12,774,347
Industrial Average 23414.08 23271.57 23409.47 -30.23 -0.13 23563.36 18867.93 23.7 18.5 9.9 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 268,490,083 2,126,300
Transportation Avg 9514.94 9468.55 9489.18 -29.66 -0.31 10038.13 8749.08 7.7 4.9 1.5 Most-active issues in late trading Decl. volume* 564,265,267 10,520,678
Utility Average 774.71 761.94 774.47 9.08 1.19 774.47 626.66 21.9 17.4 9.7 Volume After Hours Issues traded 3,078 334
Company Symbol (000) Last Net chg % chg High Low Advances 1,218 103
Total Stock Market 26673.25 26553.28 26664.02 -63.71 -0.24 26830.60 22616.13 17.7 14.6 7.9
SPDR S&P 500 SPY 9,248.0 257.61 -0.12 -0.05 258.36 257.37 Declines 1,763 215
Barron's 400 679.70 676.77 679.37 -0.57 -0.08 691.56 575.45 17.9 12.9 7.9
Bank of America BAC 5,774.0 26.32 0.08 0.30 26.32 26.17 Unchanged 97 16
Nasdaq Stock Market Pfizer PFE 2,287.0 35.43 0.05 0.14 35.51 35.28 New highs 113 4
Nasdaq Composite 6743.63 6709.27 6737.87 -19.72 -0.29 6789.12 5251.11 27.7 25.2 12.8 VanEck Vectors Jr Gold GDXJ 2,223.8 31.67 … unch. 31.69 31.65 New lows 129 15
6300.46 6263.77 Closing tick 97 28
Nasdaq 100 6293.64 -22.54 -0.36 6345.81 4734.10 32.1 29.4 14.2 Time Warner TWX 2,164.3 87.20 -0.31 -0.35 87.80 86.66
Closing Arms† 1.50 2.62
Ford Motor F 2,138.3 12.02 … unch. 12.04 12.00
Standard & Poor's Block trades* 7,335 118
-0.23
Cisco Systems CSCO 2,022.7 34.09 0.05 0.15 34.10 33.91
500 Index 2579.66 2566.56 2578.87 -5.97 2594.38 2176.94 18.3 15.2 8.1 Nasdaq NYSE Arca
Intel INTC 1,906.1 45.78 -0.08 -0.17 45.90 45.54
MidCap 400 1828.73 1822.21 1826.80 -2.13 -0.12 1843.36 1595.53 14.5 10.0 8.5 Total volume*1,952,066,129 220,516,678
SmallCap 600 895.48 891.24 894.74 -0.30 -0.03 918.72 795.17 12.5 6.8 9.6 Percentage gainers… Adv. volume* 826,126,249 62,337,167
Decl. volume*1,091,194,355 156,335,996
Other Indexes SORL Auto Parts SORL 849.9 8.15 2.16 36.06 8.88 6.11
Issues traded 3,061 1,318
Russell 2000 1474.27 1465.38 1471.26 -3.81 -0.26 1512.09 1302.14 13.0 8.4 7.8 Quarterhill QTRH 12.3 2.00 0.33 19.76 2.00 1.75
Advances 1,309 423
NYSE Composite 12316.83 12238.08 12280.11 -36.71 -0.30 12430.52 10699.43 14.3 11.1 4.1 Synacor SYNC 16.2 2.55 0.25 10.87 2.55 2.50 Declines 1,613 860
Value Line 537.20 534.52 535.90 -1.30 -0.24 545.98 492.69 8.7 5.9 2.6 CarGurus Cl A CARG 96.8 32.95 3.13 10.50 36.00 29.00 Unchanged 139 35
NYSE Arca Biotech 4076.95 3997.74 4045.25 -37.68 -0.92 4304.77 3075.02 17.5 31.6 7.5
Amyris AMRS 108.7 3.38 0.21 6.62 3.52 3.10 New highs 69 29
New lows 99 35
NYSE Arca Pharma 533.64 530.01 532.52 -0.19 -0.04 560.52 463.78 9.4 10.6 -0.1 ...And losers
Closing tick 227 13
KBW Bank 98.75 97.76 98.72 0.49 0.49 102.31 83.90 15.3 7.6 10.7 TRACON Pharmaceuticals TCON 15.3 2.75 -0.25 -8.33 3.00 2.75 Closing Arms† 1.07 1.24
PHLX§ Gold/Silver 80.46 79.52 80.00 -0.41 -0.51 96.72 73.03 -2.9 1.4 4.1 Achillion Pharm ACHN 64.9 3.41 -0.28 -7.59 3.85 3.19 Block trades* 7,375 1,155
PHLX§ Oil Service 137.38 132.69 132.82 -5.31 -3.84 192.66 117.79 -19.7 -27.7 -18.3 MACOM Tech Solutions MTSI 196.5 34.70 -1.91 -5.22 36.61 28.56 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1308.54 1295.41 1305.00 -1.58 -0.12 1321.13 836.79 53.9 44.0 26.4 Diana Containerships DCIX 5.4 6.60 -0.34 -4.90 7.00 6.60 †(TRIN) A comparison of the number of advancing and declining
12.61 11.45 0.09 16.04 9.14 -13.3 -17.5 issues with the volume of shares rising and falling. An
CBOE Volatility 11.59 0.78 -4.5 Yirendai ADR YRD 35.7 39.80 -1.95 -4.67 43.75 39.28 Arms of less than 1 indicates buying demand; above 1

Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2942.56 –8.16 –0.28 16.2 Veritone VERI 28.98 7.94 37.74 74.92 7.76 ... Energy XXI Gulf Coast EXXI 5.49 -2.86 -34.25 35.96 5.32 ...
DJ Global Index 383.06 –0.77 –0.20 17.5 Ossen Innovation ADR OSN 2.83 0.71 33.49 3.61 1.50 23.6 Network-1 Technologies NTIP 2.95 -1.45 -32.95 5.05 2.60 8.3
DJ Global ex U.S. 257.33 –0.43 –0.17 20.3 Remark Holdings MARK 4.81 1.10 29.62 5.10 1.93 9.1 China Recycling Energy CREG 3.86 -1.50 -27.99 9.39 0.95 160.8
Americas DJ Americas 618.91 –2.00 –0.32 14.5 Buffalo Wild Wings BWLD 145.35 28.10 23.97 175.10 95.00 -11.4 Netshoes (Cayman) NETS 6.96 -2.66 -27.65 26.96 6.86 ...
Brazil Sao Paulo Bovespa 70826.59 –1648.58 –2.27 17.6 Aviat Networks AVNW 15.98 3.08 23.88 24.14 9.25 54.1 NCS Multistage NCSM 16.14 -4.60 -22.18 29.07 15.01 ...
Canada S&P/TSX Comp 15913.13 –113.13 –0.71 4.1 Servotronics SVT 10.75 1.91 21.55 12.10 8.50 17.9 Calithera Biosciences CALA 9.40 -2.33 -19.83 20.05 2.90 180.6
Mexico S&P/BMV IPC 47873.65 –128.78 –0.27 4.9 Kulicke Soffa Inds KLIC 28.52 4.83 20.39 28.71 14.25 96.8 China Lending CLDC 2.94 -0.70 -19.19 8.30 2.00 -60.5
Chile Santiago IPSA 4026.32 –21.50 –0.53 24.9 Image Sensing Systems ISNS 3.35 0.50 17.72 4.10 2.65 -5.6 China Zenix Auto Intl ADR ZX 1.72 -0.40 -18.87 2.32 1.02 57.8
Phoenix New Media ADR FENG 6.29 0.92 17.13 6.87 2.43 63.4 Qualstar QBAK 7.55 -1.58 -17.31 13.20 2.62 118.8
EMEA Stoxx Europe 600 383.86 –2.27 –0.59 6.2
Advance Auto Parts AAP 95.72 13.44 16.33 177.83 78.81 -41.8 Synergy Pharmaceuticals SGYP 2.03 -0.41 -16.80 7.15 2.01 -64.5
Eurozone Euro Stoxx 387.08 –1.62 –0.42 10.5
Belgium Bel-20 3984.63 –22.94 –0.57 10.5 Intl Game Technology IGT 27.45 3.60 15.09 32.07 17.25 -7.7 Aqua Metals AQMS 3.00 -0.58 -16.20 22.75 2.98 -73.6
France CAC 40 5315.58 –26.05 –0.49 9.3 Ominto OMNT 3.70 0.48 14.91 23.05 2.57 17.5 TransEnterix TRXC 2.69 -0.50 -15.67 5.00 0.45 62.0
Germany DAX 13033.48 –40.94 –0.31 13.5 Famous Dave's of America DAVE 4.45 0.55 14.10 6.60 3.38 -10.1 Tandem Diabetes Care TNDM 2.51 -0.46 -15.49 32.50 2.15 -86.8
Israel Tel Aviv 1411.82 –6.66 –0.47 –4.0 SemiLEDS LEDS 2.80 0.33 13.20 5.49 1.61 -31.3 ARC Group Worldwide ARCW 2.07 -0.37 -15.12 5.95 2.00 -48.4
22297.08 –0.63 15.9 Evolving Systems EVOL 4.55 0.50 12.35 5.70 3.80 15.2 Cambium Learning Group ABCD 5.87 -1.03 -14.93 7.30 4.25 17.4
Italy FTSE MIB –140.56
Netherlands AEX 541.73 –3.70 –0.68 12.1
Russia RTS Index 1136.86 –11.93 –1.04 –1.3 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 9990.40 –59.50 –0.59 6.8
0.03 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 579.12 0.18 8.3 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9130.48 –32.26 –0.35 11.1
General Electric GE 310,684 403.3 17.90 -5.89 32.38 17.46 Telecom Italia ADR TI.A 1,296 10464 6.56 -0.15 8.45 5.85
U.K. FTSE 100 7414.42 –0.76 –0.01 3.8
Roku Cl A ROKU 56,539 487.3 36.95 -13.49 48.80 15.75 Natl Energy Svcs Reunited NESR 411 4150 9.90 -0.50 9.97 9.39
Asia-Pacific iShares MSCI Emg Markets EEM 55,908 16.5 45.88 -0.67 46.87 33.94 WisdomTree Emg Mkts xSOEXSOE 251 2378 30.64 -0.65 31.21 21.26
Australia S&P/ASX 200 5968.70 –53.10 –0.88 5.3 Bank of America BAC 55,718 -13.3 26.24 -0.61 27.98 19.60 iShares Global REIT ETF REET 2,911 2040 25.90 -0.04 26.43 24.24
China Shanghai Composite 3429.55 –18.29 –0.53 10.5 Finl Select Sector SPDR XLF 53,939 4.1 26.11 -0.04 26.93 21.79 Hennessy Cap III HCAC 439 1656 9.80 0.00 10.43 8.97
Hong Kong Hang Seng 29152.12 –30.06 –0.10 32.5 SPDR S&P 500 SPY 51,897 -18.6 257.73 -0.23 259.35 216.80 Acushnet Holdings GOLF 4,816 1349 17.63 0.92 22.31 15.16
India S&P BSE Sensex 32941.87 –91.69 –0.28 23.7 ProSharesUltVIXST UVXY 40,491 47.2 16.41 1.17 268.80 14.56 FlexShares Dividend Dyn IQDY 63 1053 27.62 -0.28 28.22 22.72
Japan Nikkei Stock Avg 22380.01 –0.98 –0.004 17.1 iPath S&P 500 VIX ST Fut VXX 39,923 25.9 35.16 0.74 125.30 33.11 Energy XXI Gulf Coast EXXI 2,569 1000 5.49 -34.25 35.96 5.32
Singapore Straits Times 3399.09 –20.04 –0.59 18.0 JD.com ADR JD 38,058 140.1 38.90 -5.90 48.99 25.25 Loncar Cancer Immun ETF CNCR 209 942 23.59 -2.15 28.70 20.76
South Korea Kospi 2526.64 –3.71 –0.15 24.7 Petroleo Brasileiro ADR PBR 36,520 144.0 9.68 -8.85 11.71 7.61 PS KBW Regional Bk KBWR 214 918 53.30 0.31 58.72 47.64
Taiwan Weighted 10687.18 3.26 0.03 15.5 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS & CURRENCIES Currencies

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Tues YTDchg
in US$ per US$ (%) Country/currency
Tues YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Europe
A consumer rate against its 30-year mortgage, Rate
3.75% Argentina peso .0572 17.4822 10.2 Czech Rep. koruna .04609 21.698 –15.5
benchmark over the past year 10% Brazil real .3018 3.3131 1.8 Denmark krone .1586 6.3068 –10.8
Bankrate.com avg†: 3.92%
3.00 WSJ Dollar index s Euro Canada dollar .7855 1.2731 –5.3 Euro area euro 1.1799 .8476 –10.8
Garden State Home Loans 3.75% 5 s
Chile peso .001583 631.80 –5.7 Hungary forint .003784 264.28 –10.2
4.00% Cherry Hill, NJ 609-216-7912 1 1 unch .009669 103.42 –8.4
t 2.25 0 Ecuador US dollar Iceland krona
Langley Federal Credit Union 3.75% Tuesday Mexico peso .0522 19.1685 –7.6 Norway krone .1222 8.1801 –5.4
t

30-year fixed-rate 3.00 1.50 Uruguay peso .03420 29.2400 –0.4 Poland zloty .2778 3.5999 –14.0
mortgage Newport News, VA 800-826-7490 –5
Venezuela b. fuerte .098262 10.1769 1.8 Russia ruble .01654 60.462 –1.3
2.00 America Mortgage LLC 3.88% 0.75 s Yen
t –10 Asia-Pacific Sweden krona .1191 8.3950 –7.8
Monroe, WA 425-345-0467 One year ago
t

Switzerland franc 1.0108 .9893 –2.9

10-year Treasury 0.00 –15 Australian dollar .7632 1.3103 –5.6
1.00 Cache Valley Bank 3.88% Turkey lira .2573 3.8858 10.3
note yield China yuan .1507 6.6361 –4.4
1 3 6 1 2 3 5 710 30 2017 Ukraine hryvnia .0378 26.4530 –2.3
Logan, UT 435-753-3020 Hong Kong dollar .1282 7.8026 0.6
0.00 month(s) years UK pound 1.3165 .7596 –6.2
Family Federal Savings 3.88% India rupee .01529 65.421 –3.7
D J FMAM J J A S O N maturity Indonesia rupiah .0000738 13552 Middle East/Africa
0.2
2017 Fitchburg, MA 978-353-0000
Japan yen .008814 113.46 –3.0 Bahrain dinar 2.6466 .3778 0.2
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Kazakhstan tenge .003009 332.37 –0.4 Egypt pound .0566 17.6590 –2.6
Yield/Rate (%) 52-Week Range (%) 3-yr chg Macau pataca .1247 8.0188 1.3 Israel shekel .2828 3.5359 –8.1
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Malaysia ringgit .2384 4.1940 –6.5 Kuwait dinar 3.3068 .3024 –1.1
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Corporate Borrowing Rates and Yields New Zealand dollar .6877 1.4541 0.7 Oman sul rial 2.5968 .3851 0.03
Pakistan rupee .00950 105.250 0.8 Qatar rial .2640 3.788 4.0
Prime rate* 4.25 4.25 3.50 l 4.25 1.00 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr Philippines peso .0196 51.139 3.1 Saudi Arabia riyal .2666 3.7504 –0.01
Libor, 3-month 1.42 1.40 0.91 l 1.42 1.19 Singapore dollar .7359 1.3589 –6.1 South Africa rand .0696 14.3679 4.9
Money market, annual yield 0.32 0.33 0.26 l 0.36 -0.11 Treasury, Ryan ALM 1458.494 2.174 2.103 2.237 1.818 1.626 1.917 South Korea won .0008964 1115.52 –7.7
Five-year CD, annual yield 1.49 1.48 1.19 l 1.49 -0.05 .0065100 153.61 3.5 Close Net Chg % Chg YTD%Chg
10-yr Treasury, Ryan ALM 1728.788 2.381 2.309 2.609 2.058 1.006 1.696 Sri Lanka rupee
30-year mortgage, fixed† 3.92 3.87 3.73 l 4.33 -0.15 Taiwan dollar .03321 30.112 –7.2 WSJ Dollar Index 87.38 –0.35–0.40 –5.98
DJ Corporate 377.198 3.169 3.074 3.390 2.879 4.507 3.768
Thailand baht .03028 33.030 –7.8 Sources: Tullett Prebon, WSJ Market Data Group
15-year mortgage, fixed† 3.30 3.22 2.99 l 3.50 0.06 Aggregate, Barclays Capital 1936.770 2.670 2.580 2.790 2.380 2.706 2.329 Vietnam dong .00004403 22713 –0.3
Jumbo mortgages, $424,100-plus† 4.26 4.26 4.21 l 4.88 -0.04 High Yield 100, Merrill Lynch n.a. n.a. 5.251 n.a. n.a. n.a. n.a.
Five-year adj mortgage (ARM)† 3.52 3.44 3.20 l 4.03 -0.03
Fixed-Rate MBS, Barclays 1985.020 2.910 2.820 3.120 2.650 1.777 2.033
New-car loan, 48-month 3.00 3.02 2.85 l 3.36 -0.24
HELOC, $30,000 4.41 5.06 4.41 l 5.30 0.04
Muni Master, Merrill n.a. n.a. 1.935 n.a. n.a. n.a. n.a. COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 795.879 5.655 5.618 6.290 5.279 8.893 5.596 Commodities Tuesday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 608.33 -8.25 -1.34 616.58 532.01 12.92 7.24

Get real-time U.S. stock quotes and track most-active Track the Markets 189.06 -1.25 195.14 3.27 -1.79

WSJ
TR/CC CRB Index -2.39 166.50
stocks, new highs/lows and mutual funds. Plus, Compare the performance of selected global stock Crude oil, $ per barrel 55.70 -1.06 -1.87 57.35 42.53 21.59 3.69
deeper money-flows data and email delivery of key indexes, bond ETFs, currencies and commodities at Natural gas, $/MMBtu 3.102 -0.065 -2.05 3.93 2.56 14.51 -16.70
.COM WSJ.com/TrackTheMarkets
stock-market data. Available free at WSJMarkets.com Gold, $ per troy oz. 1281.50 4.20 0.33 1346.00 1127.80 4.70 11.43
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Wednesday, November 15, 2017 | B17

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest

Metal & Petroleum Futures Jan'18 3.239 3.245 3.163 3.203 –.059 289,541 Cattle-Live (CME)-40,000 lbs.; cents per lb. June 98.1750 98.1800 98.1600 98.1750 … 1,265,766
Feb 3.238 3.248 3.166 3.205 –.060 98,763 Dec 120.450 120.925 118.775 119.500 –1.075 75,344 Dec 98.0100 98.0200 97.9950 98.0150 .0050 1,663,238
Contract Open Feb'18 126.450 126.725 124.450 125.150 –1.250 146,471
March 3.197 3.206 3.130 3.165 –.057 183,665
Open High hi lo Low Settle Chg interest Hogs-Lean (CME)-40,000 lbs.; cents per lb. Currency Futures
April 2.963 2.963 2.922 2.947 –.027 123,760
Copper-High (CMX)-25,000 lbs.; $ per lb. May 2.943 2.943 2.903 2.928 –.022 93,023 Dec 62.400 62.400 59.900 59.975 –2.325 57,651 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Nov 3.1030 3.1030 3.0450 3.0600 –0.0515 510 Feb'18 70.275 70.300 67.375 67.500 –2.800 91,053 Dec .8814 .8838 .8791 .8830 .0011 275,587
Dec 3.1240 3.1285 3.0485 3.0650 –0.0515 116,969 Agriculture Futures Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. March'18 .8865 .8882 .8842 .8879 .0011 4,437
Gold (CMX)-100 troy oz.; $ per troy oz. Nov 468.00 477.70 s 464.00 473.00 5.60 123 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Nov 1276.90 1279.10 1276.90 1281.50 4.20 71 Corn (CBT)-5,000 bu.; cents per bu. Jan'18 453.60 455.70 448.30 452.50 –3.80 5,582 Nov .7850 .7850 .7850 .7836 –.0020 1,249
Dec 1278.90 1283.80 1269.70 1282.90 4.00 291,870 Dec 342.00 342.25 t 337.25 337.50 –4.75 577,104 Milk (CME)-200,000 lbs., cents per lb. Dec .7854 .7877 .7832 .7858 –.0001 141,295
Feb'18 1282.90 1288.10 1274.40 1287.30 4.00 167,242 March'18 354.50 354.75 t 350.00 350.50 –4.50 556,731 Nov 16.83 16.84 16.79 16.82 .02 4,304 British Pound (CME)-£62,500; $ per £
April 1285.10 1292.00 1279.00 1291.60 4.00 20,384 Oats (CBT)-5,000 bu.; cents per bu. Dec 15.65 15.77 15.59 15.76 .07 4,515 Dec 1.3124 1.3199 1.3086 1.3176 .0049 170,529
June 1289.80 1296.10 1283.00 1295.90 4.00 20,243 Dec 274.00 276.75 272.75 276.25 2.75 3,862 Cocoa (ICE-US)-10 metric tons; $ per ton. March'18 1.3175 1.3235 1.3129 1.3218 .0049 3,431
Dec 1303.80 1308.80 1296.80 1308.80 3.90 11,145 March'18 284.25 286.75 282.50 286.25 3.25 3,614 Dec 2,195 2,201 2,147 2,149 –59 7,660 Swiss Franc (CME)-CHF 125,000; $ per CHF
Palladium (NYM) - 50 troy oz.; $ per troy oz. Soybeans (CBT)-5,000 bu.; cents per bu. March'18 2,196 2,204 2,152 2,155 –46 138,307 Dec 1.0057 1.0141 1.0050 1.0126 .0061 81,746
Dec 989.75 997.25 973.25 985.55 –4.15 27,869 Nov 966.00 967.25 958.50 959.00 –4.50 551 Coffee (ICE-US)-37,500 lbs.; cents per lb. March'18 1.0131 1.0211 1.0123 1.0198 .0061 265
March'18 982.75 990.65 967.30 979.75 –4.30 7,719 Jan'18 974.75 977.50 967.00 967.75 –6.50 321,484 Dec 127.55 129.00 124.25 127.05 –.55 42,177 Australian Dollar (CME)-AUD 100,000; $ per AUD
June 982.20 982.25 980.60 973.75 –4.15 408 Soybean Meal (CBT)-100 tons; $ per ton. March'18 130.70 132.30 127.50 130.45 –.30 110,657 Dec .7612 .7647 .7609 .7631 .0008 121,680
Platinum (NYM)-50 troy oz.; $ per troy oz. Dec 311.60 312.50 309.60 310.30 –1.00 84,487 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Jan'18 .7630 .7644 t .7610 .7629 .0008 621
Nov 928.30 928.70 928.30 924.10 –8.30 4 Jan'18 313.80 314.60 311.60 312.30 –1.10 110,201 March 15.17 15.18 14.95 15.10 –.03 407,282 Feb .7611 .7643 t .7609 .7628 .0008 527
Jan'18 934.70 935.70 923.00 927.30 –8.30 69,890 15.04 15.12 14.96 15.10 .06 138,133 March .7610 .7643 .7605 .7626 .0007 820
Soybean Oil (CBT)-60,000 lbs.; cents per lb. May
June .7609 .7627 .7609 .7624 .0007 245
Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 34.33 34.40 34.01 34.01 –.32 113,691 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Nov 16.905 16.905 16.905 17.052 0.029 3 March 27.33 27.40 27.30 27.30 .05 2,779 Mexican Peso (CME)-MXN 500,000; $ per MXN
Jan'18 34.48 34.55 34.15 34.16 –.32 126,108 Dec .05199 .05218 .05180 .05191 –.00007 178,493
Dec 17.060 17.095 16.860 17.073 0.026 110,412 Rough Rice (CBT)-2,000 cwt.; $ per cwt. May 27.25 27.40 27.20 27.26 .11 1,808
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March'18 .05126 .05140 .05104 .05113 –.00008 618
Nov 1115.50 1126.50 1115.50 1124.00 12.00 12 Cotton (ICE-US)-50,000 lbs.; cents per lb. Euro (CME)-€125,000; $ per €
Dec 56.72 56.77 54.81 55.70 –1.06 306,712 Dec 68.90 69.39 68.58 68.60 –.28 43,342
Jan'18 1136.50 1153.50 1134.00 1149.50 13.50 9,628 Dec 1.1686 1.1826 1.1683 1.1815 .0126 441,826
Jan'18 56.96 56.98 55.00 55.89 –1.08 529,659 March'18 68.94 69.36 68.62 68.65 –.28 129,597
Wheat (CBT)-5,000 bu.; cents per bu. March'18 1.1755 1.1895 1.1755 1.1885 .0126 6,327
Feb 57.10 57.13 55.15 56.03 –1.10 180,506 Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Dec 424.75 429.50 423.25 428.00 3.75 173,072
March 57.26 57.26 55.30 56.16 –1.11 276,834 Dec … … s … 161.40 .80
June 57.11 57.15 55.24 56.07 –1.11 230,189
March'18 443.25 446.25 441.00 445.25 2.00 217,437 Index Futures
Jan'18 160.25 162.00 157.70 161.40 .80 6,710
Dec 55.60 55.61 53.79 54.54 –1.06 266,100
Wheat (KC)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index
Dec 428.25 430.75 425.50 428.00 .50 90,296
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Interest Rate Futures Dec 23398 23424 23231 23375 –31 156,503
Dec 1.9340 1.9346 1.8824 1.9070 –.0251 92,468 March'18 444.75 447.75 442.25 445.25 1.00 138,654 March'18 23387 23410 23225 23368 –31 1,766
Jan'18 1.9367 1.9380 1.8870 1.9111 –.0242 112,186 Wheat (MPLS)-5,000 bu.; cents per bu. Treasury Bonds (CBT)-$100,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Dec 633.25 635.50 628.25 629.00 –4.25 29,259 Dec 152-110 153-040 152-050 152-280 15.0 762,195 Dec 2581.30 2581.90 2564.50 2577.90 –4.00 62,256
Dec 1.7881 1.7886 1.7325 1.7612 –.0317 99,664 March'18 647.00 649.25 642.50 643.00 –4.00 30,730 March'18 151-040 151-310 151-020 151-240 16.0 43,871 March'18 2573.40 2577.40 2566.40 2578.50 –3.90 4,953
Jan'18 1.7761 1.7806 1.7251 1.7531 –.0301 154,329 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Mini S&P 500 (CME)-$50 x index
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Nov 158.400 158.475 157.250 157.625 –1.075 4,347 Dec 124-195 124-265 124-160 124-235 3.5 3,222,704 Dec 2580.25 2582.25 2564.25 2578.00 –4.00 3,175,524
Dec 3.141 3.149 3.064 3.102 –.065 128,638 Jan'18 156.650 156.875 153.575 153.900 –3.075 29,138 March'18 124-100 124-160 124-065 124-140 3.5 74,646 March'18 2581.00 2582.50 2565.00 2578.50 –4.00 79,827
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Mini S&P Midcap 400 (CME)-$100 x index
Dec 116-285 116-312 116-255 116-300 1.5 3,124,399 Dec 1826.80 1828.30 1820.80 1826.60 –2.10 93,164
March'18 116-212 116-245 116-187 116-230 2.0 83,726 March'18 1820.70 1820.70 s 1820.70 1824.70 –2.10 9
Cash Prices | WSJ.com/commodities Tuesday, November 14, 2017 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Mini Nasdaq 100 (CME)-$20 x index
Dec 6310.8 6318.3 6262.8 6293.5 –18.5 279,403
Dec 107-170 107-175 107-162 107-167 –.5 1,752,754
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— March'18 107-120 107-125 107-112 107-120 –.2 86,609
March'18 6327.3 6333.5 6280.0 6309.8 –18.3 2,336
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Mini Russell 2000 (ICE-US)-$100 x index
separate from the futures price on an exchange, which reflects what the commodity might be worth in future Dec 1473.20 1474.40 1464.30 1470.60 –3.10 68,352
Nov 98.845 98.845 98.843 98.843 … 206,030
months. Jan'18 98.615 98.620 t 98.610 98.615 … 342,831
March'18 1468.70 1471.60 1468.70 1471.40 –3.10 80
Tuesday Tuesday Tuesday Mini Russell 1000 (ICE-US)-$100 x index
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 1426.40 1428.30 1422.40 1427.50 –3.20 295
(U.S.$ equivalent) 16.9350 SoybeanMeal,Cent IL,rail,ton48%-u n.a. Dec 100.672 100.906 100.578 100.781 .172 29,414 … … … 1428.50 –3.20 1
Energy 1 Month Libor (CME)-$3,000,000; pts of 100%
March'18
Coins,wholesale $1,000 face-a 12869 Soybeans,No.1 yllw IL-bp,u 9.1850 U.S. Dollar Index (ICE-US)-$1,000 x index
Propane,tet,Mont Belvieu-g 0.9730 Wheat,Spring14%-pro Mnpls-u 7.6650 Dec ... ... ... 98.5400 … 2,264 Dec 94.41 94.44 93.64 93.72 –.67 44,923
Other metals Eurodollar (CME)-$1,000,000; pts of 100%
Butane,normal,Mont Belvieu-g 1.0496 LBMA Platinum Price PM *933.0 Wheat,No.2 soft red,St.Louis-bp,u 4.3900 March'18 94.10 94.10 93.35 93.43 –.66 2,575
Dec 98.4675 98.4700 98.4650 98.4675 … 1,729,063
NaturalGas,HenryHub-i 3.080 Platinum,Engelhard industrial 929.0 Wheat - Hard - KC (USDA) $ per bu-u 3.8550 March'18 98.3000 98.3050 98.2850 98.3000 … 1,338,902 Source: SIX Financial Information
NaturalGas,TranscoZone3-i 3.030 Platinum,Engelhard fabricated 1029.0
Wheat,No.1soft white,Portld,OR-u 5.2950
NaturalGas,TranscoZone6NY-i 3.150
NaturalGas,PanhandleEast-i 2.680
Palladium,Engelhard industrial
Palladium,Engelhard fabricated
993.0
1093.0
Food Bonds | WSJ.com/bonds
NaturalGas,Opal-i 2.830 Beef,carcass equiv. index
NaturalGas,MarcellusNE PA-i 2.360
Aluminum, LME, $ per metric ton *2100.0
choice 1-3,600-900 lbs.-u 193.09 Tracking Bond Benchmarks
Copper,Comex spot 3.0600 select 1-3,600-900 lbs.-u 176.57
NaturalGas,HaynesvilleN.LA-i 2.890 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Iron Ore, 62% Fe CFR China-s 62.8 Broilers, National comp wghtd-u,w 0.8612
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 59.850 highs and lows for different types of bonds
Shredded Scrap, US Midwest-s,w 276 Butter,AA Chicago 2.2800
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.100 Total Total
Steel, HRC USA, FOB Midwest Mill-s 607 Cheddar cheese,bbl,Chicago 170.00
Metals Fibers and Textiles Cheddar cheese,blk,Chicago 171.00
return YTD total Yield (%) return YTD total Yield (%)
close return (%) Index Latest Low High close return (%) Index Latest Low High
Gold, per troy oz Milk,Nonfat dry,Chicago lb. 74.25
Burlap,10-oz,40-inch NY yd-n,w n.a. Cocoa,Ivory Coast-w 2462 Mortgage-Backed Bloomberg Barclays
Engelhard industrial 1272.81 Broad Market Bloomberg Barclays
Cotton,1 1/16 std lw-mdMphs-u 0.6785 Coffee,Brazilian,Comp 1.2667
Engelhard fabricated 1368.27 Cotlook 'A' Index-t *79.90 1936.77 3.1 U.S. Aggregate 2.670 2.380 2.790 1985.02 2.2 Mortgage-Backed 2.910 2.650 3.120
Coffee,Colombian, NY 1.4528
Handy & Harman base 1274.60 62.000
Hides,hvy native steers piece fob-u Eggs,large white,Chicago-u 1.2750 U.S. Corporate Indexes Bloomberg Barclays 1952.05 1.7 Ginnie Mae (GNMA) 2.870 2.570 3.090
Handy & Harman fabricated 1414.81 Wool,64s,staple,Terr del-u,w n.a. Flour,hard winter KC 15.55
LBMA Gold Price AM *1278.40 2766.37 5.1 U.S. Corporate 3.260 3.030 3.520 1164.24 2.4 Fannie mae (FNMA) 2.920 2.670 3.120
Grains and Feeds Hams,17-20 lbs,Mid-US fob-u 0.84
LBMA Gold Price PM *1277.95
Hogs,Iowa-So. Minnesota-u 66.20 2612.47 3.6 Intermediate 2.830 2.530 3.010 1792.67 2.5 Freddie Mac (FHLMC) 2.940 2.680 3.130
Krugerrand,wholesale-e 1334.22 Barley,top-quality Mnpls-u n.a. Pork bellies,12-14 lb MidUS-u 1.3637
Maple Leaf-e 1347.05 Bran,wheat middlings, KC-u 93 Pork loins,13-19 lb MidUS-u 0.8983 3818.28 8.6 Long term 4.200 4.100 4.710 n.a. n.a. Muni Master n.a. n.a. n.a.
American Eagle-e 1347.05 Corn,No. 2 yellow,Cent IL-bp,u 3.1000 Steers,Tex.-Okla. Choice-u n.a. 564.82 3.8 Double-A-rated 2.740 2.470 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a.
Mexican peso-e 1554.79 Corn gluten feed,Midwest-u,w 93.1 Steers,feeder,Okla. City-u,w 170.88
Austria crown-e 1260.50 Corn gluten meal,Midwest-u,w 483.9 713.64 5.7 Triple-B-rated 3.550 3.340 3.870 n.a. n.a. 12-22 year n.a. n.a. n.a.
Austria phil-e 1347.05 Cottonseed meal-u,w 225
Fats and Oils
High Yield Bonds Merrill Lynch n.a. n.a. 22-plus year n.a. n.a. n.a.
Silver, troy oz. Hominy feed,Cent IL-u,w 88 Corn oil,crude wet/dry mill-u,w 34.8500
Engelhard industrial 16.9900 Meat-bonemeal,50% pro Mnpls-u,w 213 Grease,choice white,Chicago-h 0.2500 n.a. n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan†
Engelhard fabricated 20.3880 Oats,No.2 milling,Mnpls-u 3.0875 Lard,Chicago-u n.a. n.a. n.a. Triple-C-rated n.a. n.a. n.a. 543.39 1.2 Global Government 1.440 1.300 1.560
Handy & Harman base 17.0200 Rice, 5% Broken White, Thailand-l,w 368.00 Soybean oil,crude;Centl IL-u n.a.
Handy & Harman fabricated 21.2750 Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Tallow,bleach;Chicago-h 0.2700 n.a. n.a. High Yield 100 n.a. n.a. n.a. 756.30 0.4 Canada 2.020 1.570 2.190
LBMA spot price £12.9200 Sorghum,(Milo) No.2 Gulf-u 7.5000 Tallow,edible,Chicago-u n.a.
n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 371.87 0.8 EMU§ 1.069 0.933 1.363

KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; n.a. n.a.Europe High Yield Constrained n.a. n.a. n.a. 712.10 0.8 France 0.820 0.710 1.210
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 11/13
U.S Agency Bloomberg Barclays 508.73 -1.1 Germany 0.470 0.210 0.620
Source: WSJ Market Data Group
1637.87 2.0 U.S Agency 2.050 1.600 2.050 287.95 -0.1 Japan 0.410 0.260 0.460
1464.75 1.2 10-20 years 1.890 1.400 1.890 561.57 -0.8 Netherlands 0.580 0.360 0.760
Borrowing Benchmarks | WSJ.com/bonds 3354.83 7.3 20-plus years 2.960 2.730 3.460 916.84 0.4 U.K. 1.620 1.340 1.790
2449.82 4.5 Yankee 2.900 2.610 3.090 795.88 7.7 Emerging Markets ** 5.655 5.279 6.290
Money Rates November 14, 2017
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a ** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
guide to general levels but don’t always represent actual transactions.
Global Government Bonds: Mapping Yields
Week —52-WEEK— Week —52-WEEK—
Inflation Latest ago High Low Latest ago High Low Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Sept. index Chg From (%) selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
level Aug. '17 Sept. '16 Treasury bill auction Six month 1.62208 1.59809 1.62208 1.27211
One year 1.89261 1.86844 1.89261 1.60456 Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
4 weeks 1.045 1.035 1.300 0.305
U.S. consumer price index Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
13 weeks 1.240 1.185 1.240 0.480 Euro Libor
All items 246.819 0.53 2.2 26 weeks 1.360 1.300 1.360 0.590 1.500 U.S. 2 1.691 t l 1.695 1.501 1.013
One month -0.399 -0.400 -0.376 -0.405
Core 252.941 0.19 1.7 Three month -0.378 -0.378 -0.325 -0.381 2.250 10 2.383 t l 2.406 2.277 2.263
Secondary market Six month -0.317 -0.314 -0.214 -0.322 2.750 Australia 2 1.842 s l 1.805 1.938 1.764 15.1 11.0 75.1
International rates One year -0.251 -0.238 -0.079 -0.251
Fannie Mae 2.750 10 2.667 s l 2.633 2.803 2.667 28.4 22.8 40.3
Week 52-Week 30-year mortgage yields
Latest ago High Low Euro interbank offered rate (Euribor) 0.000 France 2 -0.577 t l -0.574 -0.519 -0.588 -226.9 -226.9 -160.0
30 days 3.493 3.429 3.865 3.253 One month -0.372 -0.372 -0.366 -0.375 0.750 10 0.756 t l 0.782 0.668 0.816 -162.4 -144.7
-162.7
Prime rates 60 days 3.519 3.450 3.899 3.281 Three month -0.329 -0.329 -0.311 -0.332
Six month -0.275 -0.275 -0.211 -0.276 0.000 Germany 2 -0.738 t l -0.731 -0.724 -0.616 -242.9 -242.7 -162.8
U.S. 4.25 4.25 4.25 3.50
Other short-term rates One year -0.191 -0.190 -0.071 -0.191 0.500 10 0.399 t l 0.419 0.405 0.318 -198.4 -198.7 -194.5
Canada 3.20 3.20 3.20 2.70
Japan 1.475 1.475 1.475 1.475 Week 52-Week Value 52-Week 0.050 Italy 2 -0.224 t l -0.219 -0.125 0.109 -191.5 -191.4 -90.4
Latest high low Latest Traded High Low
Policy Rates ago 2.050 10 1.828 t l 1.833 2.065 2.082 -55.5 -57.3 -18.1
0.00 0.00 0.00 0.00
DTCC GCF Repo Index 0.100 Japan 2 -0.179 t l -0.169 -0.138 -0.214 -186.5 -122.6
Euro zone Call money -187.1
Switzerland 0.50 0.50 0.50 0.50 Treasury 1.244 42.742 1.366 0.244
3.00 3.00 3.00 2.25 MBS 1.229 107.850 1.506 0.257 0.100 10 0.052 s l 0.052 0.067 -0.014 -233.2 -235.4 -227.7
Britain 0.50 0.50 0.50 0.25
Australia 1.50 1.50 1.50 1.50 Open Implied 2.750 Spain 2 -0.357 t l -0.351 -0.275 -0.125 -204.8 -204.6 -113.7
Commercial paper (AA financial)
1.31 1.32 0.67
Settle Change Interest Rate 1.450 10 1.521 t l 1.533 1.580 1.532 -86.2 -87.3 -73.1
Overnight repurchase 90 days 1.32
U.S. 1.24 1.18 1.38 0.15 DTCC GCF Repo Index Futures 1.750 U.K. 2 0.489 t l 0.493 0.473 0.194 -120.2 -120.2 -81.8
Libor Treasury Nov 98.815 -0.015 8834 1.185 4.250 10 1.322 t l 1.330 1.373 1.293 -106.1 -107.6 -97.0
U.S. government rates One month 1.26350 1.24389 1.26350 0.55011 Treasury Dec 98.685 -0.005 2043 1.315
Three month 1.41899 1.40258 1.41899 0.90622 Treasury Jan 98.580 -0.005 450 1.420 Source: Tullett Prebon
Discount
1.75 1.75 1.75 1.00 Corporate Debt
Notes on data:
in that same company’s share price.
Federal funds U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
Effective rate 1.1700 1.1700 1.2000 0.3500
and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary Investment-grade spreads that tightened the most…
widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Spread*, in basis points Stock Performance
High 1.3125 1.3125 1.3125 0.5625 Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Low 1.0500 1.0500 1.1600 0.2500 billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
DTCC GCF Repo Index are traded on NYSE Liffe US. Bank of America BAC 8.000 Jan. 30, ’49 59 –39 n.a. 26.24 –0.61
Bid 1.1600 1.1600 1.1700 0.3000
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; Anheuser–Busch Inbev Finance ABIBB 3.650 Feb. 1, ’26 78 –13 86 ... ...
Offer 1.1700 1.1700 1.1900 0.3200 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
Microsoft MSFT 2.650 Nov. 3, ’22 22 –13 25 84.05 0.14
Precision Castparts PCP 2.500 Jan. 15, ’23 39 –12 n.a. ... ...
Manulife Financial MFCCN 4.061 Feb. 24, ’32 149 –11 n.a. ... ...
Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Teva Pharmaceutical Finance TEVA 6.150 Feb. 1, ’36 375 –11 381 … …
Deutsche Telekom Intl Finance DT 2.485 Sept. 19, ’23 86 –9 n.a. ... ...
Dividend announcements from November 14. Wstrn Asset Emerg Mkts EMD 7.9 .10 M Dec29 /Dec22
Wstrn Asset Emerg Mkts EMD 7.9 .10 M Feb01 /Jan19
Enterprise Products Operating EPD 7.034 Jan. 15, ’68 –45 –8 n.a. … …
Amount Payable / Wstrn Asset Emerg Mkts EMD 7.9 .10 M Mar01 /Feb16
Company Symbol Yld % New/Old Frq Record Wstrn Asset Gl Def Opp Fd GDO 7.7 .1135 M Dec29 /Dec22 …And spreads that widened the most
Wstrn Asset Gl Def Opp Fd GDO 7.7 .1135 M Feb01 /Jan19 Pitney Bowes PBI 4.700 April 1, ’23 537 33 408 9.67 –3.49
Increased Wstrn Asset Gl Def Opp Fd GDO 7.7 .1135 M Mar01 /Feb16
Energizer Holdings ENR 2.6 .29 /.275 Q Dec14 /Nov30 Wstrn Asset Glbl Hi Inco EHI 7.7 .0635 M Dec29 /Dec22 Citigroup C 6.250 Aug. 15, ’49 176 17 159 71.53 –0.64
Wstrn Asset Glbl Hi Inco EHI 7.7 .0635 M Feb01 /Jan19 Teva Pharmaceutical Fin Netherlands III TEVA 2.800 July 21, ’23 370 17 299 … …
Initial Wstrn Asset Glbl Hi Inco EHI 7.7 .0635 M Mar01 /Feb16 Philip Morris International PM 2.000 Feb. 21, ’20 37 15 n.a. 102.72 –0.76
Colony NorthStar Pfd. J CLNSpJ .55911 Jan16 /Dec29 Wstrn Asset High Inco II HIX 8.0 .046 M Dec29 /Dec22
Wstrn Asset High Inco II HIX 8.0 .046 M Feb01 /Jan19
General Electric GE 5.000 Jan. 21, ’49 120 14 95 17.90 –5.89
Funds and investment companies Anadarko Petroleum APC 5.550 March 15, ’26 158 13 138 48.05 –4.34
Wstrn Asset High Inco II HIX 8.0 .046 M Mar01 /Feb16
ClearBridge Amer Engy CBA 10.7 .20 Q Nov30 /Nov24
Wstrn Asset Mngd Muni MMU 5.3 .063 M Dec29 /Dec22 Best Buy BBY 5.500 March 15, ’21 70 13 n.a. 57.20 0.40
ClearBridge Engy MLP Fd CEM 11.2 .355 Q Nov30 /Nov24
Clearbridge Engy MLP Opp EMO 12.0 .32 Q Nov30 /Nov24
Wstrn Asset Mngd Muni MMU 5.3 .063 M Feb01 /Jan19 Huntington National Bank* HBAN 2.375 March 10, ’20 52 13 43 … …
Wstrn Asset Mngd Muni MMU 5.3 .063 M Mar01 /Feb16
Clearbridge Engy MLP TR CTR 10.3 .29 Q Nov30 /Nov24
Eagle Growth & Incm Opps EGIF 5.5 .073 M Nov30 /Nov20
Wstrn Asset Muni Hi Inco
Wstrn Asset Muni Hi Inco
MHF
MHF
4.1
4.1
.0255
.0255
M
M
Dec29 /Dec22
Feb01 /Jan19
High-yield issues with the biggest price increases…
FS Investment FSIC 9.3 .19 Q Jan03 /Dec20 Bond Price as % of face value Stock Performance
Wstrn Asset Muni Hi Inco MHF 4.1 .0255 M Mar01 /Feb16
Legg Mason BW Glbl Incm BWG 7.3 .0765 M Dec29 /Dec22 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Wstrn Asset Muni Ptnrs Fd MNP 5.0 .0625 M Dec29 /Dec22
Legg Mason BW Glbl Incm BWG 7.3 .0765 M Feb01 /Jan19
Wstrn Asset Muni Ptnrs Fd MNP 5.0 .0625 M Feb01 /Jan19 Eldorado ERI 6.000 April 1, ’25 105.500 4.25 106.251 29.05 0.87
Legg Mason BW Glbl Incm BWG 7.3 .0765 M Mar01 /Feb16
Wstrn Asset Muni Ptnrs Fd MNP 5.0 .0625 M Mar01 /Feb16
LMP Cap & Inco Fd SCD 9.0 .31 Q Dec29 /Dec22 Envision Healthcare EVHC 6.250 Dec. 1, ’24 100.520 2.27 99.500 28.52 10.29
Wstrn Asset Opp Fd HIO 6.7 .0275 M Dec29 /Dec22
Master Income ETF HIPS 7.5 .1075 M Nov16 /Nov15 EP Energy EPENEG 6.375 June 15, ’23 57.350 1.35 59.250 ... ...
Wstrn Asset Opp Fd HIO 6.7 .0275 M Feb01 /Jan19
Source Capital SOR 2.4 .44 Dec15 /Nov24 Navios Maritime Holdings NM 8.125 Feb. 15, ’19 99.125 1.13 99.813 1.35 –14.56
Wstrn Asset Opp Fd HIO 6.7 .0275 M Mar01 /Feb16
Source Capital SOR 2.4 .24 Q Dec15 /Nov24
Wstrn Asset Var Rate Fd GFY 5.4 .0775 M Dec29 /Dec22 Hexion HXN 9.000 Nov. 15, ’20 70.625 0.88 72.500 ... ...
WBI Tactical Hi Incm WBIH 2.6 .05363 M Nov16 /Nov15
Wstrn Asset Var Rate Fd GFY 5.4 .0775 M Feb01 /Jan19
WBI Tactical Incm Shares WBII 2.9 .06088 M Nov16 /Nov15
Wstrn Asset Var Rate Fd GFY 5.4 .0775 M Mar01 /Feb16 Frontier Communications FTR 8.125 Oct. 1, ’18 99.620 0.62 101.250 6.46 –7.18
West Asst HY Def Opp Fd HYI 7.2 .09 M Dec29 /Dec22 Tutor Perini TPC 6.875 May 1, ’25 106.250 0.50 n.a. 23.85 –2.65
West Asst HY Def Opp Fd HYI 7.2 .09 M Feb01 /Jan19 Stocks
West Asst HY Def Opp Fd HYI 7.2 .09 M Mar01 /Feb16 TPC TPCG 8.750 Dec. 15, ’20 99.000 0.50 n.a. ... ...
GOL Linhas Aereas ADR GOL 5:2 Nov21 /Nov22
Western Asset Corp Loan TLI 6.1 .053 M Dec29 /Dec22
Western Asset Corp Loan TLI 6.1 .053 M Feb01 /Jan19
Patrick Industries
Universal Forest Products
PATK
UFPI
3:2
3:1
Dec08 /Dec11
Nov14 /Nov15
…And with the biggest price decreases
Western Asset Corp Loan TLI 6.1 .053 M Mar01 /Feb16 Altice Luxembourg ATCNA 7.625 Feb. 15, ’25 96.500 –5.09 108.438 ... ...
Western Asset Invt IGI 4.9 .02918 M Dec29 /Dec22 Foreign
Western Asset Invt IGI 4.9 .085 M Feb01 /Jan19 Deutsche Bk Contng Cap Tr DXB 6.4 .40938 Q Nov24 /Nov22
Riverbed Technology RVBD 8.875 March 1, ’23 92.875 –3.13 n.a. ... ...
Western Asset Invt IGI 4.9 .085 M Mar01 /Feb16 Deutsche Bk Contng Cap Tr DXB 6.4 .40938 Q Feb23 /Feb22 Nabors Industries NBR 5.500 Jan. 15, ’23 96.530 –2.94 97.000 5.71 –6.70
Western Asset Invt IGI 4.9 .05582 M Dec29 /Dec22 DHT Holdings DHT 2.1 .02 Q Dec06 /Nov28 EP Energy EPENEG 8.000 Feb. 15, ’25 67.500 –2.25 73.500 ... ...
Western Asset Mtg Opp DMO 11.0 .225 M Dec29 /Dec22 National Grid ADR NGG 3.4 1.0169 SA Jan10 /Nov24
Western Asset Mtg Opp DMO 11.0 .225 M Feb01 /Jan19 RenaissanceRe Hldgs RNR 0.9 .32 Q Dec29 /Dec15
Frontier Communications FTR 8.500 April 15, ’20 89.250 –2.00 95.875 6.46 –7.18
Western Asset Mtg Opp DMO 11.0 .225 M Mar01 /Feb16 Xinyuan Real Estate ADR XIN 6.9 .10 Q Dec15 /Nov30 Noble Holding International NE 7.750 Jan. 15, ’24 86.500 –2.00 90.750 … …
Western Asset Mun Tr Fund MTT 4.6 .084 M Dec29 /Dec22 CenturyLink CTL 5.625 April 1, ’25 87.000 –1.75 93.375 14.40 –6.07
Western Asset Mun Tr Fund MTT 4.6 .084 M Feb01 /Jan19 Special Transocean RIG 6.800 March 15, ’38 80.250 –1.75 83.031 10.71 –4.72
Western Asset Mun Tr Fund MTT 4.6 .084 M Mar01 /Feb16 WR Berkley WRB 0.8 .50 Dec14 /Nov30
Western Ast Inter Muni Fd SBI 4.3 .034 M Dec29 /Dec22 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Western Ast Inter Muni Fd SBI 4.3 .034 M Feb01 /Jan19 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; Note: Data are for the most active issue of bonds with maturities of two years or more
Western Ast Inter Muni Fd SBI 4.3 .034 M Mar01 /Feb16 S2:1: stock split and ratio; SO: spin-off. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B18 | Wednesday, November 15, 2017 * **** THE WALL STREET JOURNAL.

MONEY & INVESTING

Big Fund Firms Tax Bills Divide Landlords

Criticize Provision BY PETER GRANT

In Senate Proposal The residential real-estate

BY LAURA SAUNDERS years ago for $60 would have
a $40 taxable gain.
Some of the largest fund But each share bought two
companies in the country are years ago at $110 would have a
pushing back against a little- $10 loss.
noticed provision in the Sen- Current law allows inves-
ate tax bill they argue will cost tors, including fund managers,
investors millions. to choose which shares they
The provision would pre- part with. So selling shares
vent individual investors and bought for $110 would yield a
fund managers from minimiz- loss that could offset other
ing taxes by choosing specific gains, while selling shares
shares when they sell part of a bought for $60 would produce
position. Instead, investors a taxable gain.
would have to sell their oldest If the provision takes effect,
shares first. The provision the first shares sold would be
doesn’t affect holdings in tax- deemed to have a cost of $60
deferred retirement plans like each, and an investor couldn’t
industry might be panicking
about the Republican-backed
tax overhaul making its way
through Congress, but many in
the commercial real-estate in-
dustry are delighted with what
they see so far.
Owners of office buildings,
malls, warehouses and other
commercial property would
benefit from lower taxes on
their profits and would be able
to avoid a 30% limit on deduc-
tions for interest expense that
would be imposed on other
businesses, based on two sepa-
rate bills originating in the
House and the Senate.
The Senate bill, unveiled
last week, also would shorten
the depreciation period for

C-SPAN
401(k) and individual retire- sell the $110 shares until all commercial property to 25
ment accounts. $60 shares were gone. The years from 39 years.
If the provision becomes change would take effect for Just as important, none of Bills would offer relief from a tax law Donald Trump criticized before a House committee in 1991.
law, “markets will work less sales in 2018. It is estimated the provisions that commer-
well. Our fund managers will to raise $2.7 billion over 10 cial real-estate owners feared dismayed voices in the resi- The House and Senate bills what many in the industry
have their hands tied, and our years. most were included in either dential real-estate world. Real- vary in many respects, includ- considered a major affront de-
shareholders will owe more in Supporters of the change proposal. For example, both tors, home builders and other ing some provisions that livered by the Tax Reform Act
taxes,” said Thomas Faust, say it would simplify a com- the House and Senate bills parties are upset by provisions would affect the commercial of 1986. That law outraged
chief executive of Eaton plex record-keeping issue. would preserve the much- they say would eliminate the real-estate industry. many in the industry partly by
Vance Corp., which manages “Having all these choices is loved “1031 exchange” provi- tax incentives of homeowner- Property owners in some limiting the use of so-called
more than $419 billion. harmful to taxpayers and to sion that enables sellers of ship, such as the provision in states might benefit more than passive losses, like those com-
The provision included in the tax system,” says Steven real estate to defer capital- the House bill that would re- others if proposed limitations ing from investments in real
the Senate bill requires inves- Rosenthal, a tax attorney with gains taxes by reinvesting the duce the cap on the deduction on deducting state and local estate by doctors and dentists.
tors who are selling partial the Tax Policy Center. The proceeds in some types of taxes are enacted, according to Many in the industry
positions to assume that lots summary does contain lan- properties. a report by Green Street Advi- blamed the recession of the
of securities bought at differ- guage that seems to allow Industry executives and lob- sors. Such a change could re- early 1990s partly on those
ent prices are sold on a “first- fund investors using “average byists are cheering. “If the bill
The proposals are sult in weaker economies in changes. In 1991, when Donald
in, first-out,” or FIFO, basis. cost” to continue. The wording comes together as envisioned seen as favoring high-tax states like New York Trump was 45 years old, he
The provision would affect in- of the proposed statute isn’t it will be a positive for the un- and California, reducing de- testified before the House Bud-
dex funds and exchange-traded yet available. derlying economy and that’s
commercial property mand for space. get Committee that the real-
funds, which are passively The provision would also what America needs,” said Jef- over residential. Still, the comparatively fa- estate industry was in “an ab-
managed, as well as actively affect taxpayers’ ability to frey DeBoer, chief executive of vorable treatment of commer- solute depression” and that
managed ones. maximize the value of charita- the Real Estate Roundtable, a cial property over residential “one of the reasons we’re there
“Vanguard is concerned ble donations of appreciated trade group. He pointed out a reflects a sea change in the po- is what happened in 1986.”
with language that requires securities. Under current law, number of provisions remain for residential mortgage debt litical and economic priorities That change eliminated im-
funds to sell their oldest taxpayers often don’t owe unclear. to $500,000 from $1 million. of the Republican Party. Propo- portant incentives to invest in
shares first, mostly likely in- long-term capital-gains tax on Critics of the tax bills are “This bill is a serious step in nents of the House and Senate real estate, Mr. Trump said.
creasing significantly the shares they donate while get- using other descriptions: “The the wrong direction,” said Eliz- bills say the priority of tax “If something isn’t done to
amount of taxable distribu- ting a deduction for their full House and Senate bills are abeth Mendenhall, the incom- overhaul is to stoke job cre- put the incentive back we’re
tions made to investors every market value. The best shares both windfalls for commercial ing president of the National ation by all businesses includ- no different from the Soviet
year,” a Vanguard spokes- to give may not be the oldest real estate that boggle my Association of Realtors in a ing commercial real estate, Union,” he said. “They have no
woman said. shares they acquired. mind,” said Steven Rosenthal, letter last week to House that any pain homeowners incentive and we have no in-
Here’s how the provision “People who want to maxi- a senior fellow with the Tax members. might suffer would be made up centive.”
works: Say an investor owns mize tax savings by donating Policy Center, a joint venture Much could change in the for by economic growth and The full House and a Senate
two lots of one stock bought specific lots that aren’t their of the Urban Institute and the weeks between now and the that unfair tax breaks are be- committee are expected to
at different prices, and they oldest ones should do it before Brookings Institution. end of the year, when the GOP ing removed. vote this week on the different
are held in a taxable account. year-end,” says Robert Gordon The commercial property hopes to complete the biggest At the same time, the pref- plans.
If the stock is trading at $100 of Twenty-First Securities, a industry’s favorable reaction overhaul of the tax code since erential treatment of commer- —Richard Rubin
now, each share acquired five tax strategist in New York. contrasts markedly with the the Reagan administration. cial property helps rectify contributed to this article.

More Americans Feel Like a Million Dollars Deutsche

Bank CEO,
BY BRIAN BLACKSTONE

ZURICH—The U.S. may have

ceded its leading position in
Top Investor
the billionaires stakes to Asia,
but it remains the undisputed
Ease Tension
king of millionaires. BY JENNY STRASBURG
A report Tuesday from Swiss
banking giant Credit Suisse FRANKFURT—There has
Group AG showed that the num- been a thaw in Germany.
ber of dollar-based millionaires Deutsche Bank AG Chief
around the world rose in the Executive John Cryan met here
year through mid-2017 by 2.3 last week with the CEO of the
million, with nearly half of bank’s biggest investor, Chi-
them residing in the U.S. nese conglomerate HNA Group
But the news wasn’t as Co., according to people famil-
good for the millennial gener- iar with the matter.
ation that became adults in The meeting between Mr.
FG/BAUER-GRIFFIN/GC IMAGES/GETTY IMAGES

the new century, with their Cryan and HNA CEO Adam Tan
wealth prospects held back by was their first, the people said.
factors such as high student It happened one month after
debt, youth unemployment The Wall Street Journal re-
and frothy housing markets, ported on Mr. Cryan’s resis-
the report said. tance to engage with HNA.
There were more than 15 “We are talking with our
million U.S.-based millionaires shareholders, not about our
in 2017, up 1.1 million from a shareholders,” a Deutsche
year earlier. Globally, there Bank spokeswoman said.
were just over 36 million of An HNA spokesman de-
them. clined to comment, as did a
Japan and the U.K. were a Posh Rodeo Drove in Beverly Hills, Calif. There are more than 15 million U.S.-based millionaires, according to a Credit Suisse study. spokesman for Alexander
distant second and third, re- Schütz, HNA’s representative
spectively, though their million- rica, for example,” the Credit For the purposes of the flourish and employment grow, The report on millionaires on the Deutsche Bank board.
aire ranks fell in the past year Suisse report said. study, Credit Suisse included though the ongoing supportive came weeks after Credit Previously, Mr. Cryan’s criti-
due to declining values in their U.S. households benefited in the value of financial assets role played by the Federal Re- Suisse’s rival, UBS Group AG, cism of HNA stoked tensions
currencies, a particular issue for particular from their greater plus housing and other nonfi- serve has undoubtedly played a offered a more sobering view with Deutsche Bank Chairman
the U.K. in the wake of Brexit. exposure to financial assets nancial assets, minus debt. It part here as well, and wealth on U.S. billionaires. Although Paul Achleitner, who this year
“In the post-crisis period, like stocks and bonds, mean- also included private pension inequality remains a prominent those ranks rose, too, the helped woo HNA during the
the source of wealth growth ing their wealth improves fund assets but didn’t include issue,” said Michael O’Sullivan, number of Asian billionaires lender’s $8.5 billion capital in-
tilted heavily towards the when the prices of these as- public pensions. Credit Suisse’s chief invest- surpassed those in the U.S. crease, the Journal reported
United States, opening a wide sets rise—more so than house- “So far, the Trump presi- ment officer for international last year for the first time, led last month. HNA lifted its
gap with Japan and all of Af- holds in other countries. dency has seen businesses wealth management. by China. Deutsche holding during the
capital increase, and in May
disclosed a nearly 10% stake.

SEC Rejects Delaying Surveillance Database Deutsche Bank executives

BY DAVE MICHAELS campaign to convince the SEC
AND ALEXANDER OSIPOVICH and lawmakers that the reposi-
tory would include too much
Wall Street’s top overseer personal information about
rejected a last-minute request American investors and would
from securities exchanges to become a target for hackers.
delay a vast database of trad- All of the exchanges tasked
ing information billed as the with helping build the CAT—in-
most advanced defense against cluding the New York Stock Ex-
manipulation and bouts of change, Nasdaq Inc. and oth-
market mayhem. ers—had asked for a one-year
The Securities and Exchange delay of the project. Given the
Commission said late Tuesday SEC’s rejection of the delay, the
that it wouldn’t agree to delay exchanges won’t comply with
Wednesday’s launch of the their own plan on Wednesday
Consolidated Audit Trail, a when they fail to report trading
project regulators accelerated data to the audit trail.
after they didn’t have enough Stock-exchange executives
data to explain a wild trading approached the SEC last week
session in May 2010 known as to seek the delay, according to
the flash crash. Exchanges re- people familiar with the mat-
cently launched a lobbying ter, and formally requested the
extension late Monday.
“I am not in a position to
support the issuance of the re-
quested relief on the terms
currently proposed,” SEC
Chairman Jay Clayton said in a
statement. “I urge the [ex-
changes] to continue their ef-
forts to work cooperatively
with each other and to meet
their responsibilities as
promptly as practicable.”
Mr. Clayton’s statement,
which said the SEC’s talks with
exchanges over the project in
recent days have been “con-
structive,” suggests the agency
probably won’t seek to penal-
ize the exchanges for missing
the deadlines.
The audit trail, which will
ultimately ingest about 58 bil-
lion daily trading records, has
become a source of friction be-
tween regulators, exchanges,
brokers and investors. The big-
gest exchanges are in the odd
position of talking down a ma-
jor technology project they are
required to build under a com-
mission-approved plan.
Mr. Clayton, a political inde-
pendent, said Tuesday that the
SEC would consider whether it
needs access to investors’ per-
sonal information. Current
plans call for the database to
store data such as Social Secu-
rity numbers and dates of
birth of people behind trades,
though these elements aren’t
scheduled to be reported until
a second deadline in November
2018.
The SEC chief’s refusal to
budge on a major deadline for
the long-delayed project drew
praise from SEC Commissioner
Kara Stein, a proponent of
tougher regulation who has
called the CAT the “Hubble
telescope” of the markets.
Ms. Stein, a Democrat, ques-
tioned whether exchanges,
which are for-profit companies
but still have legal duties to
oversee fair trading, can still
be relied upon to act as regula-
tory partners for the SEC.
In their request to postpone
the deadline, which was posted
on a public website on Tuesday,
the exchanges said a delay
would help ensure that certain
essential steps can be taken to
secure the data in the audit trail.
and investors saw the capital
increase as a crucial move fol-
lowing a string of costly legal
bills and client doubts over the
lender’s financial stability.
Behind the scenes, Mr.
Cryan was critical of HNA in
part because the Chinese com-
pany had borrowed billions of
dollars to fund its stake and
protect itself against losses us-
ing derivatives, people with
knowledge of his comments
said. Mr. Cryan viewed the
structure as speculative, the
Journal reported.
At the meeting, Mr. Tan ex-
pressed support for the
Deutsche Bank CEO and the
lender’s general strategy, one
of the people said. Mr. Tan
suggested the Chinese com-
pany could be helpful to
Deutsche Bank with contacts
and insights in China.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Oil Falls
On Cut to
Demand
Forecast
BY ALISON SIDER
AND NEANDA SALVATERRA
Oil futures tumbled as the
International Energy Agency
lowered its forecast for de-
mand, calling into question a
key element of oil’s recent
rally.
U.S. crude futures fell $1.06,
or 1.87%, to $55.70 a barrel on
the New
COMMODITIES York Mer-
cantile Ex-
change on
Tuesday, making for their big-
gest single-day decline since
Oct. 6. Brent, the global bench-
mark, fell 95 cents, or 1.5%, to
$62.21 a barrel on ICE Futures
Europe.
Stronger-than-anticipated
demand has been one of the
reasons oil prices have gained
about 20% since early Septem-
ber. But in its closely watched
monthly oil report, the IEA cut
its crude demand-growth out-
look by 100,000 barrels a day
for 2017 and 2018, citing the
impact of higher prices and a
mild start to winter. The
agency now expects demand to
grow by 1.5 million barrels a
day this year and 1.3 million
barrels a day next year.
That change, while modest,
could be enough to delay the
process of bringing down an
oil glut, and the new forecast
sparked a selloff that deep-
ened throughout the day, ana-
lysts said.
“All year long the IEA has
been revising upward its fore-
cast for demand. Now they’re
tempering that enthusiasm,”
said Andy Lipow, president of
Lipow Oil Associates. “As a re-
sult the market is under pres-
sure. The feeling is we need
every bit of growth we can
muster to soak up the oversup-
ply situation.”
Oil prices have hovered
around multiyear highs,
buoyed by geopolitical turmoil
in the Middle East and support
from the Organization of the
Petroleum Exporting Coun-
tries’ ongoing effort to elimi-
nate about 2% of global supply
with the help of external pro-
ducers.
But the IEA said that if the
supply disruptions and geopo-
litical tensions that have
helped fuel higher prices prove
to be temporary, “a fresh look
at the fundamentals confirms
the view we expressed last
month that the market balance
in 2018 does not look as tight
as some would like, and there
is not in fact a ‘new normal’ ”
for prices above $60.
At current production levels
global stocks will be un-
changed in 2018, the IEA said.
Commercial petroleum stocks
in the Organization for Eco-
nomic Cooperation and Devel-
opment—a group of industrial-
ized, oil-consuming nations,
including the U.S.—fell below
three billion barrels in Sep-
tember for the first time in
two years, but the IEA attri-
buted much of that to the im-
pact of Hurricane Harvey.
Some analysts say the IEA
may be too cautious in its pro-
jections.
“We are now projecting
small draws [next year] even
before factoring in an exten-
sion of the cuts beyond March
2018,” said Richard Mallinson,
an analyst at consultancy En-
ergy Aspects.
On Wednesday morning,
markets will watch for weekly
EIA data on U.S. oil invento-
ries. Analysts surveyed by The
Wall Street Journal are expect-
ing, on average, to see declines
in both crude-oil and fuel
supplies.
China’s Bond Rout Raises Prospect of Higher Borrowing Costs
BY SHEN HONG
SHANGHAI—China’s 10-year
government-bond yields
touched 4% for the first time
in years as a domestic bond-
market selloff intensified,
threatening to raise borrowing
costs for a swath of Chinese
companies whose debt levels
have been climbing.
Prices of Chinese bonds
have been tumbling for days,
sending their yields higher.
The 10-year yield briefly hit a
three-year high of 4.01% on
Tuesday before ending the day
at 3.97%.
* * * *
Default Call Sinks Venezuela Debt
Holders face quandary:
Wait or push for a
default process likely
to be very complex?
Venezuelan bonds, already
trading at distressed levels,
fell on Tuesday after credit-
rating firms declared the na-
By Julie Wernau,
Anatoly Kurmanaev
and Kejal Vyas
tion in default on missed in-
terest payments.
The development sets up a
conundrum: Bondholders can
now push for a wave of pay-
ments, but some
CREDIT said they would
MARKETS rather get their
money late than
take their
chances on what could be one
of the biggest, most compli-
cated defaults in history.
Venezuela’s bonds due 2028
dropped to 24.94 cents Tues-
day from 27.15 cents Monday,
according to data provider IHS
Markit. Bonds for state oil
firm Petróleos de Venezuela
SA due in 2035 dropped to
26.625 cents from 29.375, ac-
cording to IHS Markit. Typi-
cally as a bond nears maturity,
A Freeport McMoRan mining complex in Indonesia in 2015. Energy and materials sectors were among big decliners on Tuesday, with Freeport-McMoRan down 4.4%.
Stocks Track Declines in Commodity Prices
BY MICHAEL WURSTHORN
Declines in shares of oil-
and-gas firms, chemical com-
panies and miners pressured
major stock indexes Tuesday.
The losses tracked a slump
in commodities prices, with
U.S. crude oil
TUESDAY’S posting its
MARKETS biggest one-
day drop in
more than a
month.
The Dow Jones Industrial
Average shed 30.23 points, or
0.1%, to 23409.47 while the
S&P 500 slid 5.97 points, or
0.2%, to 2578.87. The Nasdaq
Composite fell 19.72 points, or
0.3%, to 6737.87.
The energy and materials
sectors were among the big-
gest decliners in the S&P 500.
Mike Baele, managing di-
rector at U.S. Bank Private
Wealth Management, said the
pullback isn’t a major concern
since the two sectors had been
among the best performers in
recent months. “The synchro-
nized global expansion looks
to be intact, so frankly a little
Domestic yields have
climbed since the start of this
year. The 10-year Chinese
bond yield was at 3.1% in Jan-
uary and 3.7% a month ago,
according to S&P Global Mar-
ket Intelligence.
The latest selloff came de-
spite moves by the People’s
Bank of China to pump a large
amount of cash into the finan-
cial system for a second day in
a row. After injecting 150 bil-
lion yuan ($22.56 billion) into
the money market Monday,
the central bank added an-
other 140 billion yuan Tues-
day.
MARKETS
its price rises toward 100
cents on the dollar if investors
expect to be repaid.
Despite the country’s di-
minishing dollar reserves,
Venezuelan President Nicolás
Maduro and his aides have
committed to continue making
payments on the nation’s high-
yielding bonds, even if they
come late. The cash-strapped
South American nation has
provided some of the best re-
turns in emerging markets in
recent years, complicating the
case for investors to turn up
the pressure on Caracas in the
near term.
“It’s hard to envision a sce-
nario where investors are going
to start accelerating payments,”
said Ray Zucaro, chief invest-
ment officer at Miami-based
RVX Asset Management. “As a
bondholder you don’t want to
mess up that gravy train.”
However, Venezuela’s pay-
ment delays have made Mr. Zu-
caro nervous. He said his fund
holds bonds of PdVSA that ma-
tured two weeks ago and the
money hasn’t yet turned up in
RVX’s accounts. The Venezue-
lan government has said the
payment was made but has
been delayed due to bank-
transfer complications gener-
ated by U.S. sanctions.
The Venezuelan govern-
ment is now trying to shore up
volatility isn’t a bad thing,” he
added.
U.S. crude slid 1.9% to
$55.70 a barrel after the In-
ternational Energy Agency
said the oil price rally could
be short-lived and global oil
demand would be weaker than
expected this year and next.
The move pressured energy
shares, with Range Resources
falling $1.23, or 6.6%, to $17.35
and Newfield Exploration
shedding 2.27, or 7.1%, to
29.82. Energy companies in
the S&P 500 fell 1.5%.
Meanwhile, metals miner
Freeport-McMoRan, was off
63 cents, or 4.4% to 13.80, and
chemical company Albemarle,
fell 5.72, or 4%, to 137.65, con-
tributing to a broad decline
among material companies.
Shares of General Electric
continued to reel after Chief
Executive John Flannery out-
lined a plan on Monday to re-
organize the business and cut
its dividend in half. Shares fell
1.12, or 5.9%, to 17.90 on Tues-
day and are down 13% over the
past two days.
Utilities in the S&P 500
The rising bond yields
could complicate Beijing’s ef-
forts to reduce risk and lever-
age in China’s financial system
while maintaining economic
stability.
If companies’ borrowing
costs climb as a result, that
could make it harder for firms
to obtain new loans or refi-
nance existing debt, and weigh
on economic growth.
Beijing’s domestic debt-fi-
nancing costs are the highest
among major economies, with
the yield on its 10-year domes-
tic bond topping rates in the
U.S., the U.K., Australia, South
Losing Faith
Investors expected a default in
Venezuela even before this
week’s events.
The cost to insure against a default
in the next year as percentage of
notional value
150%
Venezuelan bonds
125
PdVSA bonds
100
75
50
25
0
J F M A M J J A S O N
Source: Bloomberg data via Bulltick
Capital Markets
THE WALL STREET JOURNAL.
scarce funds to make about
$300 million in late interest
payments by Friday, according
to an official in Caracas famil-
iar with bond transactions.
Interest-payment delays
have been caused by liquidity
shortages as well as problems
executing transfers with U.S.
financial sanctions in place,
the official said, adding the
government is trying to meet
its obligations this year and to
restructure the outstanding
debt in 2018.
Waning Influence
The company with the smallest weighting in the Dow Jones
Industrial Average, currently General Electric, has fallen to its lowest
point in years.
Smallest weighting
of Dow components
1.5%
1.0
0.5
0
2000 ’05
Source: WSJ Market Data Group
continued to move higher. The
sector, considered by some in-
vestors to be a relatively sta-
ble income-producing invest-
ment, gained 1.2% Tuesday
after rising 1.2% a day earlier.
Despite major indexes
notching slight gains on Mon-
day, the Dow industrials and
Korea and much of Europe.
China’s recently issued U.S.-
dollar sovereign bonds, mean-
while, traded at a narrow
spread of 0.25 percentage
point over 10-year U.S. Trea-
sury notes and were yielding
2.65% on Tuesday.
Some analysts have pointed
to concerns about rising infla-
tion in China, which could be
driving domestic yields higher.
But others say the bond rout
appears irrational because
other economic data indicate
China’s growth remains under
pressure. Investors are more
likely to buy assets perceived
Wednesday, November 15, 2017 | B19
“The system is pushing us
towards a unilateral restruc-
turing,” he said. “Our wish is
to continue paying but at this
moment we’re reviewing all
options.”
Venezuela was found in de-
fault by S&P Global Ratings
late Monday after it missed
about $200 million in interest
payments on its sovereign
debt. The payments were to
have been made within a 30-
day grace period that ended
Monday to avoid opening the
door for creditors to organize
and litigate for payment.
S&P said it can still reverse
Monday’s downgrade if Vene-
zuela makes the late payments
before creditors organize and
demand repayment.
Fitch Ratings late Tuesday
joined S&P Global Ratings in
declaring two of Venezuela’s
sovereign bonds in default.
Robert Abad, founder of
emerging-markets advisory
firm EM+BRACE, said that
while many large institutional
investors in these bonds have
given way to speculative inves-
tors at this point, the bonds
are still widely held.
“The speculators won’t care
less,” he said. “The big inves-
tors who were still there are
trapped in the transom now.”
PdVSA and Venezuela’s In-
formation Ministry didn’t re-
June 2009 September 2013
General Motors Alcoa removed
removed from from the Dow
the Dow
0.53%
’10 ’15
THE WALL STREET JOURNAL.
S&P 500 have traded lower in
three out of the past four ses-
sions, in part because of inves-
tors’ concerns about how Re-
publicans will proceed with
their tax overhaul. That has
coincided with signs of stress
in high-yield debt and the
winding down of the third-
as safer like government
bonds in times of economic
uncertainty.
Data released in the past
few days on China’s money
supply, factory output and re-
tail sales pointed to slowing
momentum for the world’s
second-largest economy. Still,
stronger U.S. and European
economies are expected to
help keep China’s economy
humming.
Meanwhile, as bond yields
climb, many Chinese compa-
nies are facing the prospect of
higher borrowing costs, which
could hamper Beijing’s efforts
spond to requests for com-
ment.
Meanwhile, holders of Ven-
ezuelan credit-default swaps—
insurance-like derivatives—
were trying to make a case
that there has been a “failure
to pay credit event,” according
to a Tuesday morning filing to
the International Swaps and
Derivatives Association. So far
ISDA has pushed off a decision
but was scheduled to meet
again this week.
Mr. Maduro and other Ven-
ezuelan government officials
have insisted they will pay off
the country’s debts. But Vene-
zuelan officials provided few
details about how they would
move forward with a planned
debt restructuring during a
brief meeting with bondhold-
ers at the presidential palace
Monday afternoon, according
to people who said they were
in attendance.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auction.
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
Applications $156,324,268,800
Accepted bids $50,000,240,800
" noncompetitively $557,581,300
" foreign noncompetitively $100,000,000
Auction price (rate) 99.918722
(1.045%)
Coupon equivalent 1.060%
Bids at clearing yield accepted 80.11%
Cusip number 912796MG1
The bills, dated Nov. 16, 2017, mature on Dec. 14, 2017.
DADANG TRI/BLOOMBERG NEWS
quarter earnings season.
“Since Friday, the theme
has been deleveraging and tak-
ing risk off the table,” said
Larry Peruzzi, managing direc-
tor of international equity
trading at Mischler Financial.
“Part of it has been profit-tak-
ing and part of it has been un-
certainty with taxes and Wash-
GE
ington.”
The Stoxx Europe 600 re-
versed early gains to edge
down 0.6% to its lowest close
since September in its sixth
consecutive session of de-
clines.
At the lunch break Wednes-
day, Japan’s Nikkei Stock Aver-
age was down 0.6%. At the
same time, the Shanghai index
’17 was down 0.4% and the Shen-
zhen index was off 0.3%.
Recent data show that a
broad measure of money sup-
ply in China was lower than
expected, while other data
showed slower industrial out-
put and fixed-asset investment
growth in the country last
month.
—Riva Gold
contributed to this article.
to engineer a smooth and
gradual process of reducing le-
verage in the financial system.
Average yields on China’s
five-year, AAA-rated corporate
bonds, a popular measure of
corporate funding costs, have
soared to 5.19%, the highest
level since September 2014.
The effects haven’t been
felt by most companies so far.
Some debt issuers have put off
plans to sell bonds or turned
to other sources of financing
such as loans from govern-
ment-linked entities or trusts.
—Chao Deng
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B20 | Wednesday, November 15, 2017
Debt Crisis in Venezuela: What’s Next
$2.0 billion
1.5
1.0
0.5
0
Oct. ’17
Do nothing
and hope they
get paid
Venezuela has said it will continue
to pay, and some funds are being
deposited even if they’re late enough
to constitute a technical default.
If the payments come in before other
bondholders launch legal battles, the
defaults are “cured,” according to bond
indentures and attorneys, and the
country is protected from creditors
that might seek to seize assets.
Estimated debt outstanding
International reserves
$9.68 billion
*Petróleos de Venezuela SA, or PdVSA, is a state-owned oil company and it controls electricity company Electricidad de Caracas, or Elecar.
Sources: Morgan Stanley/Bloomberg (payments); Moody's Investor Servicet (outstanding debt); Banco Central de Venezuela (reserves)
Email: heard@wsj.com
Car Chips Are Driving Infineon
How do you justify an in-
vestment in an expensive-
looking stock? By setting it
against “peers” that look
more expensive, like Tesla.
Such comparisons, together
with takeover rumors, could
keep electric-vehicle supplier
Infineon Technologies’
stock buoyant for some time.
A spinoff of German in-
dustrial giant Siemens, Infi-
neon makes microchips for
all manner of industrial ap-
plications, but the one that
has caught investors’ imagi-
nation is the electric, self-
driving car. Little wonder:
Revenue from these nascent
automotive technologies in-
creased between 60% and
80% during the year through
September, the company re-
ported alongside annual re-
sults Tuesday.
The growth will continue,
management said, but this
will weigh on margins in the
broader automotive busi-
ness. This is a warning: Car
tech’s growth potential re-
quires massive capital in-
Smaller Banks May Now Dream Big
Congress finally looks set
to deliver some regulatory
relief for midsize lenders.
The biggest beneficiaries will
be even smaller banks with
midsize dreams.
A bipartisan group of sen-
ators has agreed to an over-
haul plan aimed at helping
regional banks rather than
Wall Street giants. Most no-
tably, it would raise the
threshold under which banks
are subject to additional
scrutiny, including annual
stress-testing, from $50 bil-
lion to $250 billion of assets.
This is clearly welcome
news for banks in those size
brackets. Most crucially, by-
passing annual exams with
the Federal Reserve would
allow banks to return excess
capital to shareholders more
THE WALL STREET JOURNAL.
MARKETS
By Julie Wernau
Venezuela has been falling behind on debt payments in its prolonged economic crisis.
Some payments have come late. Others haven’t arrived at all. The South American country
has said it wants to restructure its remaining debt, which analysts put as high as $150 billion.
But observers say Venezuela’s debt crisis could be one of the most complicated in history.
Cash-strapped Venezuela and its Two large principal payments on Grace periods on missed interest
state oil company Petróleos de PdVSA bonds, which had no grace payments began to expire Monday,
Venezuela SA have been putting off periods, arrived late in recent and Venezuela and PdVSA failed to
making interest payments on their weeks, according to investors pay in time. Some ratings firms
debt, taking advantage of 30-day and ratings firms. found them in default.
grace periods to save money.
PdVSA principal Venezuela principal
PdVSA interest Venezuela interest
Venezuelan bond payments, by month due*
Elecar
Nov. Dec. Jan. ’18 Feb. March April May June July Aug. Sept. Oct. Nov. Dec.
When a country defaults, investors typically have a few options
Push for full payment Negotiate
to restructure the
Trigger CDS Accelerate Litigate outstanding debt
payout bond payments
Holders of credit default swaps— Bondholders can organize and vote Owners of Venezuelan bonds that Venezuela’s government called
derivatives that pay out in the event of to accelerate payment schedules for haven’t been paid can also bring bondholders to a meeting Monday
a default—are already trying to collect their debt. With a threshold of 25%, individual lawsuits, which allow to discuss the issue. But most major
on the late interest and principal the bondholders could trigger them to demand payment from holders didn’t attend because U.S.
payments. The International Swaps cross-default provisions across the government via the courts. sanctions limit dealings with
and Derivatives Association has put Venezuelan and PdVSA bonds that Venezuelan officials and prohibit
off making a decision so far and is require full payment, which amounts institutions in the U.S. from trading
scheduled to meet again this week. to at least $60 billion in bonds. new bonds with President Nicolás
Maduro’s government.
The U.S. Treasury, which doled out
the sanctions, has indicated it could
Seize assets alter its policy if a restructuring plan
Venezuela’s many and varied creditors could battle to seize assets in lieu is approved by the opposition-
$142 billion
of payment, including the country’s lifeblood: oil. Among the most sought- controlled congress, which has
after assets are state-owned oil refiner Citgo Holdings Inc., shares of been diminished by Mr. Maduro’s
which were pledged to bondholders and Russian oil producer Rosneft in increasingly authoritarian rule.
exchange for loans.
THE WALL STREET JOURNAL.
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
With Tweak, Earnings
Fast Lane
ergreen question of a take-
over. The company has no
Look That Much Better
Forward price/earnings ratios blocking shareholder, and U.S. companies are about The technology sector is a
the chip market continues to to close the books on an- standout performer, with op-
30 times consolidate. Infineon’s rival other solid earnings season, erating earnings per share
in car chips is NXP Semicon- helping sustain high stock- rising 22.5% from a year ear-
Umicore ductors, which Qualcomm is market valuations. In fact, lier. But it isn’t alone. Other
25 in the process of buying for underlying corporate earn- highly cyclical sectors are
Infineon
$39 billion. Qualcomm itself ings are even better than the also posting strong growth,
STMicro has a suitor, Broadcom, headline data suggest. including energy, materials
20
which has offered $105 bil- Operating earnings per and industrials.
lion. share for S&P 500 companies This is aided by strong
How the puzzle pieces will were up about 9% from a growth not just in the U.S.
15
eventually fit together is im- year earlier in the third but also by synchronous
possible to predict, but Infin- quarter, according to esti- growth around the world.
eon looks digestible even mates by strategists at About one-third of S&P 500
10
with a market value ap- Credit Suisse Group. That re- earnings come from over-
2014 ’15 ’16 ’17 proaching $33 billion and no spectable figure still repre- seas, estimates Credit Suisse
Source: FactSet THE WALL STREET JOURNAL. net debt. Its latest attempt sents a slowdown from 11.6% equity strategist Patrick Pal-
to pursue its own consolida- growth in the second quarter frey.
vestment even as the compa- to European chip rival STMi- tion—an $850 million deal to and 15.8% growth in the Of course, should the U.S.
nies involved sacrifice croelectronics. Yet Infin- buy Wolfspeed from U.S. first. economic cycle turn, these
profits for a stake in the new eon’s stock doesn’t look ex- technology company Cree— But billions of dollars in cyclical sectors will become
market. Tesla’s investors pensive relative to other was frustrated this year by losses booked by insurance among the riskiest places to
don’t seem to mind, though, electric-car plays, such as the Committee on Foreign companies due to three hur- be. But the earnings data
and neither do Infineon’s. battery-cathode producer Investment in the U.S. ricanes and two Mexican give little indication such a
The shares rose 2.7% Tues- Umicore, let alone the giddy As long as the market re- earthquakes distort the data, turn is imminent. In fact,
day even as the company valuation Intel paid for Mo- mains focused on growth says Steve Chiavarone, port- companies appear to be allo-
flagged slower profit growth. bileye this year. and mergers and acquisi- folio manager at Federated cating more resources to
The stock is up 46% in That deal underscored an- tions, this vehicle could keep Investors. Without these nat- capital expenditure and re-
2017 and trades at 25 times other reason Infineon’s speeding. ural disasters, S&P 500 earn- search and development, and
forward earnings, a premium shares have rocketed: the ev- —Stephen Wilmot ings per share would be up less to shareholder payouts.
roughly 12%, he notes. This could help extend the
That would make for cycle.
three consecutive quarters of
double-digit-percentage
earnings growth, something
that hasn’t happened since
Growth is the name of the
game on Wall Street today,
and after looking past the ef-
fect of hurricanes, there is
13% to 17%, according to will have another, potentially 2011, when corporations plenty of it to keep investors
Primed for Payouts Keefe, Bruyette & Woods. more transformational im- were still bouncing back happy.
Estimated excess capital as a On Monday and Tuesday, pact. Many even smaller from a painful recession. —Aaron Back
percentage of risk-weighted assets shares of these four lenders banks have held back their
rose an average of 5.1% in re- growth ambitions, or re-
Comerica
Zions Bancorp
4.35%
3.09
sponse to the Senate plan.
Investors shouldn’t expect
frained from big mergers, for
fear of crossing the $50 bil-
OVERHEARD
Citizens Financial 2.45 much more of a bump be- lion mark. If that threshold
M&T Bank 2.15 yond that because this move is raised, it would unlock America is addicted to caf- pulling ads from a show star-
CIT Group 2.10 has long been expected. Ana- some lending activity by feinated beverages, but the ring a certain controversial
lysts began talking about banks just below it. companies getting rich off the conservative TV host.
Fifth Third Bancorp 1.92
raising the $50 billion There also could be a trend have tripped from time A quick online search shows
KeyCorp 1.84 threshold as soon as Trump boom in mergers between to time due to their perceived that perhaps the most popular
Source: Keefe, Bruyette & Woods was elected. banks somewhere in the $10 political leanings. Starbucks is alternative to Keurig’s single-
Shares of midsize lenders billion to $50 billion range, best known for this, drawing serve machines is made by a
quickly and predictably. have outperformed other which number more than 50. ire for, among other things, in- company spun off from its
The most overcapitalized banks for over a year. Even The most obvious winners sufficiently Christmassy holiday larger parent just weeks ago,
of these banks include before this week’s rally, the from the Senate plan are to- cups. Hamilton Beach Brands Hold-
Comerica, Citizens Finan- four big winners identified day’s midsize lenders tar- The latest casualty, Keurig ing. Shares had languished un-
cial Group, Zions Bancorp by KBW were up an average geted for immediate relief, Green Mountain, which is as til last week, but rose 5.1% in
and CIT Group. Stepped-up 35% since the election, com- but investors should be look- dominant in home-brewed cof- the past two sessions.
share buybacks over a few pared with a 30% rise for the ing out for the midsize lend- fee as Starbucks is outside the Wake up and smell the
years’ time could boost these KBW Nasdaq Bank Index. ers of tomorrow. home, is being boycotted for gains.
banks’ earnings per share by But raising the threshold —Aaron Back