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Our Financial Consultants listen before they help you plan. Flip to page B14 to learn more.
* * * * * * MONDAY, OCTOBER 2, 2017 ~ VOL. CCLXX NO. 78 WSJ.com HHHH $4.00

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Catalan Separatists Claim Victory in Outlawed Vote in Spain

Trump
What’s
Rejects
News
Business & Finance
Dialogue
quifax’s board is re-
With Kim
E viewing the actions of
the firm’s top lawyer in BY FELICIA SCHWARTZ
connection with share
sales by executives in the WASHINGTON—President
wake of a data breach. A1 Donald Trump said he didn’t
think it was worth pursuing
Hedge funds are making
negotiations with North Ko-
money and taking in new
rean leader Kim Jong Un, a
cash, in a reversal from a year
day after his secretary of state
ago. The average fund was
revealed the U.S. was in direct
up 5.4% through August. A1
contact with Pyongyang.
Google is rolling out a “I told Rex Tillerson, our
EDU BAYER FOR THE WALL STREET JOURNAL
package of policies and ser- wonderful Secretary of State,

vices to help news publishers that he is wasting his time
increase subscriptions. B1 trying to negotiate with Little
Rocket Man,” Mr. Trump said
Emerging-market stocks
on Twitter on Sunday, using a
are on pace for their best
disparaging reference to Mr.
year since 2009, but many
Kim. “Save your energy Rex,
investors fear a downturn. B1
we’ll do what has to be done!”
Oil prices bounced back
The president and his top
in the third quarter on strong
diplomat have sent differing
demand for crude and signs
signals about North Korea be-
of ebbing U.S. output. B6
DEFIANCE: The leaders of Catalonia said voters in the restive Spanish region overwhelmingly backed independence on Sunday in a fore, as well as on other topics.
Interest rates whipsawed
referendum that was boycotted by opponents and marred by violence. Clashes between police and civilians left hundreds injured. A6 In August, Mr. Trump warned
bank stocks in the quarter and
of unleashing “fire and fury” on
are likely to stay the dominant
North Korea, raising questions
force through year’s end. B5
Equifax Lawyer in Hot Seat

about potential nuclear war,
Shake Shack’s founder amid worries that Pyongyang
has raised $220 million in may target Guam. Mr. Tillerson
a private-equity fund. B12 later told reporters there was
no new threat from North Ko-
Exchange Capital is inter-
rea and that Americans should
ested in buying the Chicago
Stock Exchange if opposition Board reviews actions ter, as it tries to size up who proach and the share sales are have been a matter of intense “sleep well at night.”
knew what, and when, about expected to be the subject of interest since the company Mr. Tillerson has been inter-
sinks a Chinese bid. B12 of chief legal officer the hack and how it was han- extensive questioning at three said hackers apparently ested in pursuing lines of com-
Pop star Cher alleged in connection with dled. congressional hearings this breached its data via a pub- munication with North Korea,
she was duped into selling John J. Kelley, Equifax’s week where the company’s licly identified software vul- but that approach has been
biotech shares “at a frac- executives’ share sales chief legal officer, had the ulti- former chief executive, Rich- nerability, which it said it has largely rejected by Mr. Trump,
tion” of their real value. B3 mate responsibility for ap- ard Smith, is set to testify. since patched. Analyses based whose advisers have warned
BY ANNAMARIA ANDRIOTIS proving share sales by top ex- Equifax announced last week on publicly available informa- about the signal it would send
World-Wide AND EMILY GLAZER ecutives days after the that Mr. Smith would step tion of Equifax’s security sys- after North Korea sent a pair
company discovered in late aside as both chairman and tems in the months before the of missiles over Japan this
The board of Equifax Inc. is July that it had been hacked, chief executive. Before he re- hack by four cyberrisk-analy- summer and tested what it
Trump dismissed the idea reviewing the actions of the according to people familiar signed in what he called “the sis companies found weak- claimed was a hydrogen bomb.
of negotiating with North credit-reporting company’s with the matter. He also is best interests of the company,” nesses, showing the company Mr. Trump also tweeted on
Korea, a day after Tillerson top lawyer in connection with central to broader questions Mr. Smith wrote that the was behind in basic mainte- Sunday, “Being nice to Rocket
said the U.S. was in direct share sales by executives there facing the board because he is breach was the “most hum- nance of websites and scored Please see TALKS page A8
contact with Pyongyang. A1 in the aftermath of a massive responsible for security at the bling moment” in the com- poorly in areas that would
data breach, according to a company. pany’s 118-year history. likely play a role in the data North Korean dissidents
Catalonia’s leaders said
person familiar with the mat- Both Equifax’s security ap- Equifax’s security practices Please see SALES page A11 detail rescue bid...................... A8
voters in the Spanish region
overwhelmingly backed in-
dependence in a referen-
Trump: Win Is for Storm Victims
dum marred by violence. A6
A plan being considered
by the administration that
THE INFORMANT BEHIND
would aim to close a Taliban
office was protested by some
State Department officials. A10
BASKETBALL BUST
The Supreme Court be-
gins a new term Monday with
a docket filled with long- Marty Blazer cooperated for almost three years, trying to save himself
time conservative goals. A4
The trial of a suspect in Marty Blazer couldn’t believe unsealed against coaches at ma-
the Benghazi, Libya, attack what he had gotten himself into. By Rebecca Davis jor college sports programs, a
that killed four Americans By this summer, the Pittsburgh O’Brien, top executive at the sportswear
is set to begin Monday. A2 investment adviser had spent Andrew Beaton company Adidas AG and others.
months crisscrossing the U.S., and Brian Costa Ten people were arrested, and
Trump slammed the me-
KEVIN LAMARQUE/REUTERS
passing cash to coaches at some storied University of Louisville

dia and what he called un-
of the country’s top college basketball pro- coach Rick Pitino was essentially fired.
grateful politicians over crit-
grams. None of them seemed to know he was Mr. Blazer’s central role is even more re-
icism of the administration’s
secretly helping federal authorities build one markable given that he didn’t have a relation-
Puerto Rico aid efforts. A3
of the biggest alleged bribery and corruption ship with any of the four assistant coaches
Administration officials cases in college sports history. charged in the investigation, which is continu-
pushed back at criticism “This is surreal stuff,” Mr. Blazer told a per- ing, and he has never spoken to Mr. Pitino, ac-
that the GOP tax plan would DEDICATION: President Donald Trump on Sunday cited victims of son familiar with the investigation. “They just cording to the person familiar with the investi-
mostly benefit the wealthy. A4 recent hurricanes in presenting the Presidents Cup to U.S. golfers. keep sticking their hand out.” gation.
Puerto Rico is struggling to recover from the most recent storm. A3, A16 Three years ago, Mr. Blazer had no contacts Steve Pence, a lawyer for Mr. Pitino, said he
France opened a terror
to speak of in college basketball. Last week, he didn’t know if the coach ever met Mr. Blazer.
probe after two women
was Cooperating Witness-1 in criminal charges Please see BUST page A12
were killed in Marseille. A10
Died: S.I. Newhouse Jr.,
89, publishing magnate. B9
The Kids Are Not Alright: Bureaucrats Buck Goat Yoga Hedge Funds Rebound,
Markets Review
Highlights of major trends
in the third quarter,
i i i
Zoning officials go to the mat to halt fad involving baby ruminants

Drawing in New Cash
looking to the final BY ROB COPELAND dustry’s best relative perfor-
stretch of 2017. B1, B5-8 BY DANIEL NASAW teaches the disci- been denied.” mance in a rising market since
pline on the ceme- Goats appear to Written off less than a year 2010. Investors, particularly in
WASHINGTON—Young goats tery grounds. “She have begun engag- ago as overpriced and under- Asia and the Middle East, have
have on occasion grazed in the said quite the op- ing in yoga in performing, hedge funds are begun sending new money
CONTENTS Opinion.............. A17-19 Historic Congressional Ceme- posite—the baby America last year pulling off an unexpected two- hedge funds’ way, attracted by
Business News....... B2,3 Outlook....................... A2
Crossword.............. A16 Sports........................ A16 tery, deployed to keep down goats just love to in earnest after step this year: making money the better returns and a broad
Heard on Street.... B13 Technology............... B4 brush. A yoga instructor has interact with hu- photographer and taking in new cash. lowering of the industry’s hefty
Life & Arts...... A13-15 U.S. News............. A2-4 been holding weekly classes in mans.” Lainey Morse The average hedge fund is fees.
Market Review B5-8 Weather................... A16
Markets............. B12,14 World News.... A6,8,10-11
the chapel. Gruff was the hosted a session up 5.4% through the end of Au- For now, at least, the gloom
Goats and yoga go together, response from Dis- among kids she gust, while stock-focused hedge that had beset hedge funds is
as any modern yogi knows. So, trict of Columbia keeps as pets on funds have gained 8.3%, ac- lifting and even giving way to
> cemetery staff proposed this officials. District her Albany, Ore., cording to the researcher HFR. outright optimism.
spring, why not combine them policy, they de- Downward goat farmland. Over the same period, the S&P “It just feels better,” said
and bring inner peace to all on creed, prohibited In a typical class, 500 rose 11.9% including divi- Alper Ince, a partner at the
the grounds? the human-animal contact goat yogis assemble on a lawn or dends, while the traditional hedge-fund investor Pacific Al-
s Copyright 2017 Dow Jones &
“I asked the farmer if there’s yoga presented: “At this time pasture and young goats are 60-40 split of stocks and bonds ternative Asset Management
Company. All Rights Reserved any harm to the goats doing the request for the event with loosed among them. “Humans would have earned 8.9%. Co. Mr. Ince credited an im-
yoga,” says Kelly Carnes, who the inclusion of baby goats has Please see YOGA page A12 That makes this year the in- Please see FUNDS page A4
A2 | Monday, October 2, 2017 THE WALL STREET JOURNAL.
U.S. NEWS
THE OUTLOOK | By Kate Davidson
ECONOMIC
Tax Cuts’ Link to Growth Is Tenuous CALENDAR

MONDAY: The European sta-
tistics agency releases its Au-
The Trump administration tax-policy changes over time, Lower income-tax rates in gust unemployment figures. Eco-
and congressional Republicans looked all the way back to the Complicated Relationship theory should increase labor- nomic growth in the eurozone
are counting on an overhaul 1870s and found a tenuous In the (very) long run, the relationship between low taxes and high market participation because this year has helped reduce a
of the U.S. tax code to rev up connection between economic GDP growth isn’t cut and dried. it means individuals get a big- still-high unemployment rate,
the anemic U.S. economic growth rates and taxes. ger after-tax payoff from but figures to be released by
Taxes as a share of GDP
growth rate. History suggests He also found tenuous con- working. That is offset to Eurostat are expected to show
that isn’t a sure outcome. nections when comparing tax LOWER-TAX ERA RISING-AND-HIGH-TAX ERA some degree because it means that improvement stalled in Au-
John F. Kennedy, a Demo- and growth between coun- 30% 1870–1929 1929–2014 individuals also don’t need to gust.
crat, in 1963 proposed and tries. For example, output per 25 work as many hours to keep THURSDAY: The U.S. Com-
Lyndon Johnson, also a Demo- person in Sweden, a high-tax their after-tax income and merce Department will release
crat, in 1964 signed into a law country, grew faster between 20 Federal, state and local standard-of-living level stable. data detailing the U.S.’s trade
a cut in the top tax rate from 1970 and 2012 than in Swit- balances with key partners. The
T
15
91% to 70% and a slightly zerland, a relatively low-tax he net effect of individ- trade deficit in goods with China,
lower corporate tax rate. Eco- country. Federal only ual-tax-rate reductions Mexico and Canada expanded
10
nomic output expanded at a “It’s really hard to just look on participation seems through the first seven months
swift 4.7% rate for the rest of at countries’ growth rates 5 to be modestly positive. Raj of 2017, compared with the prior
the decade. Republican Ronald over time, relate that to what Chetty, a Stanford University year. Damage to Gulf Coast
0
Reagan signed a tax cut into their tax rates and structures professor, found that a 10% in- ports and oil refiners from Hurri-
law in 1981 and later reduced are, and say, ‘Ah, here’s the 1870 ’80 ’90 1900 ’10 ’20 ’30 ’40 ’50 ’60 ’70 ’80 ’90 2000 ’10 crease in after-tax wages led cane Harvey and related flooding
the corporate tax rate, and silver bullet,’ ” said Mr. Slem- GDP per capita in constant 2014 dollars
to a 4% increase in hours could elevate the reading for Au-
economic output expanded at rod. worked. gust.
3.8% for the rest of the de- One complicating factor is $60,000 1.8% AVG. GROWTH 1.8% AVG. GROWTH Matthew Shapiro, another The European Central Bank
cade. the interplay between taxes, 40,000 Michigan economics profes- will release minutes from its
Those examples suggest a interest rates and growth. The sor, said tax-policy changes Sept. 6-7 meeting. ECB Presi-
strong connection between U.S. economy boomed in the 20,000 can have important short-run dent Mario Draghi signaled after
tax cuts and growth. Other ex- 1980s in part because the Fed- effects on business invest- that gathering that the bank
amples cut the other way. eral Reserve beat down infla- 10,000 ment as well, but the effects could announce a plan to gradu-
tion with high interest rates tended to fade over time. ally end its bond-buying program
G
eorge H.W. Bush, a Re- and then, after a deep reces- Note: Chart is logarithmic, “Most changes are fairly in 2018.
5,000 with vertical scale
publican, and then Bill sion, cut interest rates aggres- temporary, and there’s a big FRIDAY: The U.S. Labor De-
Dotted line shows compressed to show changes
Clinton, a Democrat, sively. In the 1990s, interest long-term growth in percentage terms. incentive to take advantage of partment releases its Septem-
2,500
advanced increases in the top rates were held down by a those temporary changes,” he ber U.S. jobs report, after the
tax rate that became effective worker-productivity boom 1870 ’80 ’90 1900 ’10 ’20 ’30 ’40 ’50 ’60 ’70 ’80 ’90 2000 ’10 said. country’s unemployment rate
in 1991 and 1993, and U.S. out- that helped to keep inflation Source: Joel Siemrod's analysis of Maddison Project and Commerce Department data The Trump administra- ticked up to 4.4% in August,
put nevertheless expanded at lower than the Fed expected. THE WALL STREET JOURNAL. tion’s proposals are meant to adding fewer jobs than econo-
a robust 4.1% annual rate for Tax and deficit policies can boost labor supply by lower- mists had expected. Consumer
the rest of the 1990s. George directly affect the level of in- ting some of the benefits of workers—is critical. ing individual rates and boost spending was soft in August,
W. Bush, a Republican, cut terest rates and growth. In lower tax rates. Labor-force participation is business investment by reduc- and U.S. inflation figures contin-
taxes in 2001 and 2003, and the 1990s, for example, U.S. The Trump administration also key. The 1970s, a decade ing corporate taxes and incen- ued to show modest price
growth expanded at an ane- policy makers counted on def- is aiming for a 3% growth marred by high inflation and tivizing investment, Kevin growth across the economy.
mic 1.7% rate for the rest of icit cuts to keep interest rates rate, compared with the 1.9% slowing productivity, never- Hassett, the recently con- This trifecta highlights the
the decade. And back in the low and spur economic rate that has prevailed since theless produced a 3.4% firmed chairman of the Coun- Federal Reserve’s conundrum
1950s, when a top rate of 91% growth. Some economists say 2000. growth rate, which was better cil of Economic Advisers, said over sluggish economic growth
prevailed, the economy never- big deficits, by pushing up Many factors affect a na- than the 2000s, because baby in an interview. even as it looks to continue rais-
theless expanded at a steam- public debt, crowd out private tion’s economic growth rate. boomers and women joined A permanent increase in ing interest rates at a gradual
ing 4.5% annual rate. investment and growth. Some The productivity of the work- the workforce in droves. the growth rate is “very, very pace.
Joel Slemrod, a University warn that deficit increases force—driven not just by pol- The key to effective tax difficult,” he acknowledged. September’s job report will be
of Michigan economics profes- now could spur the Fed to icy change in Washington but policy is thus whether it can But even a temporary increase watched for signs that raising
sor and co-author of the book, raise interest rates faster than also by innovations like the drive productivity and labor- would raise standards of liv- rates could constrain an already
“Taxing Ourselves,” a study of expected, potentially offset- internet and the education of force participation higher. ing. slow-growing economy.
U.S. WATCH
FOOTBALL Sunday after serving nine years
for a botched hotel room heist
Scaled-Down Game that brought the conviction and
Protests Continue prison time he avoided after his
1995 acquittal in the killings of
A number of players and his ex-wife and her friend.
teams around the National Foot- Mr. Simpson was released on
ball League protested in some parole just after midnight from
fashion before games Sunday, Lovelock Correctional Center in
though the demonstrations were Nevada, according to state pris-
fewer and more muted than the ons spokeswoman Brooke Keast.
prior weekend. She said she didn’t know imme-
During Sunday’s game in Lon- diately where Mr. Simpson was
don, at least three Miami Dol- headed, adding an unidentified
phins took a knee during the na- driver met him.
tional anthem. There were other Neither Mr. Simpson’s attor-
instances of players kneeling ney, Malcolm LaVergne, nor
through the anthem, but those state Parole and Probation Capt.
were smaller in numbers than Shawn Arruti, who has been
the broad response across the handling the case, responded to
NFL the Sunday before. requests for comment.
Many teams knelt before the Mr. Simpson, 70 years old,
anthem, then rose as a group gained his freedom after being
for its playing. That script, one granted parole at a July hearing.
executed by the Dallas Cowboys —Associated Press
last Monday, was followed by
teams including the New Or- ENTERTAINMENT
leans Saints, Jacksonville Jag-
uars and Baltimore Ravens. TV Game Host
The acts followed a week in Monty Hall Dies
Ahmed Abu Khatallah, accused of helping plan the attack that killed the U.S. envoy to Libya, on a U.S. Navy ship after his capture in 2014. which President Donald Trump
repeatedly blasted the NFL for Monty Hall, the genial host of
Benghazi Suspect’s Trial to Begin

allowing players to kneel as the the television game show “Let’s
anthem was played. Make a Deal,” has died at 96.
—Andrew Beaton Mr. Hall, who had been in
poor health, died Saturday of
BY DEL QUENTIN WILBER pated in the assaults that be- CRIME heart failure at his home in Bev-
Man to Face Jury in lance video that officials say gan on the night of Sept. 11,
O.J. Simpson Exits
erly Hills, Calif., said his daughter,
On a moonlit night in June ties Mr. Rahimi to the attacks. 2012, federal prosecutors al- Sharon Hall. “Let’s Make a Deal,”
2014, a Federal Bureau of In- N.Y.-N.J. Bombings On the morning of Sept. 17 lege. In the days before the at- Prison on Parole which Mr. Hall co-created, made
vestigation agent and seven last year, the first explosive de- tacks, Mr. Khatallah had voiced its debut in 1963 and aired in
Navy SEALs landed on a rocky vice detonated in Seaside Park, opposition to the U.S. presence Former football star O.J. syndication for decades.
coast and trekked to a villa in Federal prosecutors will N.J. Shortly after that blast, in Benghazi, which included a Simpson became a free man —Associated Press
Benghazi, the Libyan city seek to convince jurors this law enforcement found another State Department special mis-
where almost two years earlier week that Ahmad Rahimi is pressure-cooker bomb a few sion and a CIA facility known
four Americans, including the
U.S. ambassador, were killed in
the man who set off bombs in
New York City and New Jersey
blocks away. The next day,
multiple explosive devices were
as the annex. Mr. Stevens was
in Benghazi on Sept. 11 to at-
CORRECTIONS AMPLIFICATIONS
a terrorist attack. last year that wounded more discovered inside a backpack tend a ribbon-cutting at a
Their mission: to arrest Ah- than two dozen people. near an Elizabeth, N.J., train school and to meet with locals. Spelman College’s graduat- schools where students feel in-
med Abu Khatallah, an alleged Mr. Rahimi, a 29-year-old station. Around 9:45 p.m., dozens of ing students walk under an arch spired by their peers incorrectly
ringleader of that assault, and U.S. citizen who was born in Prosecutors are expected to armed men breached the gates at commencement. In Wednes- said Spelman College students
to spirit him to a Navy ship in Afghanistan, faces mandatory show emails from Mr. Rahimi of the U.S. special mission day’s U.S. College Rankings re- walk under an arch when they
the Mediterranean, according life imprisonment if convicted that contain information about where Mr. Stevens was staying, port, an article about the top enter school for the first time.
to court testimony and Federal of all eight charges he faces, jihad, as well as his alleged in- according to the indictment.
Bureau of Investigation reports. which include using weapons ternet searches for propaganda The assailants rampaged Readers can alert The Wall Street Journal to any errors in news articles by
When Mr. Khatallah, lured of mass destruction. He has magazines from terrorist through the mission, stealing emailing wsjcontact@wsj.com or by calling 888-410-2667.
by an informant, arrived at the pleaded not guilty. groups such as Islamic State. property and setting the fires
villa, the special operators Prosecutors say Mr. Rahimi In a court filing, the de- that took the lives of Messrs.
pounced. Handcuffed and planted bombs in New York City fense wrote that many of the Stevens and Smith, prosecutors THE WALL STREET JOURNAL
gagged, Mr. Khatallah was and New Jersey, including one electronic communications oc- said. (USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
whisked to the USS New York that detonated in Manhattan curred years before the attack, Mr. Khatallah is accused of Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
for the voyage to the U.S. and a Sept. 17, 2016. The blast injured and that sending links to arti- coordinating the assailants’ ef- Published daily except Sundays and general legal holidays.
trial in a federal courtroom. more than 30 people and cles about jihad doesn’t point forts, taking part in the mission Periodicals postage paid at New York, N.Y., and other mailing offices.
That trial is scheduled to begin caused millions of dollars in to a “serious expression of an attack and plundering materi- Postmaster: Send address changes to The Wall Street Journal,
Monday in Washington. damage, authorities say. Mr. Ra- intention to use a weapon of als, including sensitive docu- 200 Burnett Rd., Chicopee, MA 01020.
Mr. Khatallah faces 18 fed- himi was captured days later. mass destruction.” ments. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of
eral charges related to the The trial will feature surveil- —Nicole Hong The Benghazi attack became the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
Benghazi attacks, including the a heated issue in the 2016 pres- Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
alleged murders of Ambassador idential campaign, as some Re- Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
Christopher Stevens, State De- charges. His trial is expected to mastermind of any attack and publicans accused Hillary Clin-
partment Information Manage- last more than a month and in- that he was wrongly abducted ton, who was secretary of state NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
ment Officer Sean Smith and clude testimony from FBI and brought to the United in 2012 and would become the By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
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contract security officers, Ty- vived the attacks and Libyans ders he did not commit,” said nee, of being insufficiently at-
rone Snowden Woods and Glen who participated in it. Eric Lewis, one of Mr. Khatal- tentive to security and mislead- REPRINTS & LICENSING
Anthony Doherty. His defense team says he lah’s lawyers. ing the public on the issue. By email: customreprints@dowjones.com; By phone: 1-800-843-0008
Mr. Khatallah could be sen- played no role in the assault. Mr. Khatallah was a leader Mrs. Clinton said she per-
tenced to life in prison if con- “The evidence will show of the extremist brigade Ubay- formed her job well and didn’t GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS
victed of the most serious that Mr. Khatallah was not the dah Bin Jarrah, which partici- intentionally mislead anyone.
THE WALL STREET JOURNAL. * * Monday, October 2, 2017 | A3
U.S. NEWS
DANIELA HERNANDEZ/THE WALL STREET JOURNAL (PHOTOS)

A Puerto Rico Town Suffers in Solitude
Humacao is mostly on are still out of commission
some 11 days since the storm
its own as it awaits made landfall. A lack of fuel
aid in Maria’s wake; has slowed delivery of sup-
plies.
‘Nothing is left here’ Gov. Ricardo Rosselló said
Sunday the government is
BY DANIELA HERNANDEZ working to bring in fuel and
supplies, restore communica-
HUMACAO, Puerto Rico—In tions and improve air travel.
the days after Hurricane Maria He said the island would be re-
battered this beachside town, ceiving more fuel in the next
tearing off roofs, flooding couple of days, and efforts to
homes, and toppling trees, few get food and water around the
have come to help. island are accelerating.
Instead, Milton Rivera Peña, Humacao is grappling with
a 69-year-old Vietnam War vet- Maria’s aftermath mostly on its
eran who has been leading lo- own. There are long lines at lo-
cal efforts to cope with the cal grocery stores, where food
devastation, has worked to is being rationed. Public trans-
marshal resources to clear de- portation is nonexistent. There
bris and obtain relief supplies, is a shortage of fuel, and many
while working through 90 de- residents no longer have work-
gree heat amid a scarcity of ing cars. Flooding continues to
water. He said the area needs be a threat.
more relief supplies. Residents say government
“Nothing is left here,” said officials have instructed the
Mr. Rivera Peña, whose house public to call an emergency
was flooded with 6 feet of wa- hotline for help or sign up on a
ter. “It’s going to take years to website, but there is no cell-
recover.” phone or landline service in
Before the storm, the econ- town, nor an internet connec-
omy of this community about tion.
an hour southeast of San Juan “We’re totally cut off,” said
was based on fishing and tour- Luz Teresa Costa Rodriguez,
ism. But Maria’s strong winds who suffers from depression Humacao was still in shambles Saturday, top, more than 10 days after Maria struck. Above, Helen Rodriguez surveyed her property.
and heavy rains ravaged hotels, and heart disease and cares for
and local fishermen say they a nephew with autism. “Emo- still littered with furniture,
can’t afford to replace the tionally, I’m not doing well.” televisions, mattresses and Amid Criticism, day, referring to the Federal Trump administration offi-
boats Maria destroyed. The As the floodwaters rose dur- children’s toys the saltwater Emergency Management cials stood up for the president
pier near Playa de Humacao, ing the storm, Ms. Costa Rodri- drenched and destroyed. Trump Slams Media Agency. and the federal response during
where many live, was ripped guez said she thought she and Like many of her neighbors, A day earlier, Mr. Trump Sunday talk shows. Treasury
apart, and the neighborhood her family would drown. A Ms. Rodriguez is relying on criticized Ms. Cruz in a series of Secretary Steven Mnuchin said
smells of rotting fish, some family across the street from friends and family to bring her President Donald Trump on Twitter posts that also took on NBC that the San Juan
that washed ashore, others her house had to break a win- food and fuel. Relatives living Sunday criticized the media and aim at Puerto Ricans who mayor's comments were “unfair
that went bad from having dow and swim out to save abroad are flying in with suit- what he called ungrateful politi- “want everything to be done given what the federal govern-
been in homes and restaurants cases filled with canned food, cians after his administration for them.” ment has done,” before ac-
that lost power. batteries and water. “We’re all faced criticism for its early ef- “Such poor leadership ability knowledging, “I understand peo-
Mr. Rivera Peña said federal- in this sunken ship together,” forts to support hurricane-rav- by the mayor of San Juan, and ple’s frustration” given the dire
government inspectors have
Local fishermen say she said. aged Puerto Rico. others in Puerto Rico, who are situation in Puerto Rico.
visited the region to conduct they can’t afford to Residents worry they won’t Democrats have said Mr. not able to get their workers to FEMA Administrator Brock
damage assessments, but so far be able to access prescription Trump seemed to focus more help,” Mr. Trump said. Long told ABC Ms. Cruz “does
there isn’t a major relief effort
replace the boats drugs for conditions like diabe- on issues such as National Ms. Cruz has accused the have access” to relief supplies
under way for the area’s Maria destroyed. tes, cardiovascular disease and Football League protests than Trump administration of “killing while acknowledging that “where
56,000 residents. The Salvation depression when their supplies the early federal response to us with the inefficiency” and we’re finding success in one area,
Army was offering meals on run out. In some cases, the cur- Hurricane Maria in Puerto Rico. asked to “make sure somebody in some areas, we see setbacks,”
Saturday throughout town. rents that ripped through San Juan Mayor Carmen is in charge that is up to the citing damaged infrastructure as
There is mounting criticism themselves, she said. houses swept away refrigera- Yulín Cruz also has challenged task of saving lives.” a significant problem.
that the government re- “Every day that passes, the tors and storage units where the federal government’s han- Mr. Trump plans to visit Mr. Trump thanked Puerto
sponse—both federal and lo- situation gets more precari- residents had collected food dling of the island’s crisis. Puerto Rico on Tuesday. Rico Gov. Ricardo Rosselló and
cal—hasn’t moved fast enough ous,” said Helen Rodriguez, a and medicines for safekeeping. Mr. Trump dismissed those Sen. Bernie Sanders, an in- congresswoman Jenniffer
to deal with the crisis, leaving nurse who lives with her 79- Mr. Rivera Peña, the local critics. “Outside of the Fake dependent from Vermont, said González-Colon along with Gov.
people without access to medi- year-old mother. She left to restoration coordinator, said he News or politically motivated on CNN it is “unspeakable” for Kenneth Mapp of the U.S. Vir-
cal care, food, water and other weather the storm with family envisions an uphill climb in ingrates…people are now start- Mr. Trump to attend a golf gin Islands for their work after
essential supplies, including in a nearby town, only to find getting back to where the town ing to recognize the amazing event this weekend while “at- the disaster in a series of
batteries and fuel. The electri- her home flooded and her fur- was before the storm. work that has been done by tacking the mayor of San Juan, tweets on Saturday.
cal grid is down, leaving much niture destroyed when she re- “I cried a lot. We didn’t ex- FEMA and our great Military,” who is struggling to bring elec- —William Mauldin
of the island in the dark, and turned. pect this,” he said. “There were Mr. Trump said in a tweet Sun- tricity to the island.” and Michael C. Bender
more than 80% of cell towers The street where she lives is things that were lost forever.”
Captain’s Errors Cited in Sinking Carter Marks 93rd

BY NICOLE HONG Birthday at Church
The sinking of the cargo BY JONATHAN CHENG blended John Lennon’s “Imag-
ship El Faro in 2015, which ine,” Mariah Carey’s “Hero”
BOB SELF/THE FLORIDA TIMES-UNION/ASSOCIATED PRESS
killed all 33 crew members PLAINS, Ga.—Jimmy Carter and the hymn “I Surrender
aboard, was primarily caused certainly wasn’t going to men- All.”
by errors of the ship’s captain, tion it. But everyone else at “You have given us a saint
who underestimated the se- Maranatha Baptist Church that we don’t deserve,” the
verity of a hurricane, accord- knew the former U.S. presi- pastor, Brandon Patterson,
ing to the U.S. Coast Guard. dent’s Sunday school lesson said in prayer.
In a 199-page report re- would be special: It fell on his But Mr. Carter had his eyes
leased Sunday, the Coast 93rd birthday. fixed further afield in his les-
Guard said Capt. Michael Da- Before the weekly lesson, son. Above all, he said, he was
vidson steered the ship almost church representatives ticked focused these days on North
directly into Hurricane off the rules of the road for Korea. He recounted the three
Joaquin, as the vessel was the group of approximately times he had visited the coun-
transporting cars and contain- 150 people, including tourists try and the 20 hours he said
ers filled with consumer goods from Alaska and Alabama, he had spent with senior lead-
from Jacksonville, Fla., to San Family of El Faro crew members shown in February with photographs of their loved ones. China and Cuba, who had ership in Pyongyang, and he
Juan, Puerto Rico. gathered to see and listen to worried openly about the pos-
El Faro sank on Oct. 1, 2015, before the sinking, Capt. Da- Puerto Rico, which, Capt. Neu- by the shipping operator. Doz- Mr. Carter. There would be no sibility of war.
representing the worst disas- vidson said that “there is bauer said, “failed to identify ens of the families of El Faro’s happy birthday songs, they While he nodded to doubts
ter involving an American nothing bad about this ride,” heavy weather as a threat to crew have reached settlements said, although brief congratu- among experts about North
cargo ship in decades. and that he was “sleepin’ like their vessels” and failed in its with TOTE Maritime. lations were permitted during Korea’s ability to mount a
Capt. Davidson “misjudged a baby.” oversight of fatigue and rest The report found that the the carefully scripted photo miniaturized nuclear warhead
the path of Hurricane Joaquin William Bennett, a lawyer requirements for the crew. The Coast Guard and the American session to follow. on a missile capable of reach-
and overestimated the vessel’s representing Capt. Davidson’s Coast Guard said the crew’s Bureau of Shipping, which And the focus wasn’t to be ing the U.S., he said that “we
heavy weather survivability, family, said he believed the re- likely fatigue and anxiety con- were responsible for certifying on the 39th president’s birth- ought to assume they have it.”
while also failing to take ade- port has “serious omissions of tributed to the incident. that El Faro met safety stan- day, but rather on his lesson He also expressed doubts
quate precautions to monitor critical facts and faulty analy- A spokesman for TOTE dards, had also contributed to for the week, a meditation on about Pyongyang’s willingness
and prepare for heavy sis.” Maritime said in a statement the tragedy by failing to per- the first chapter of the Apos- to give up its growing nuclear
weather,” said Coast Guard Although Capt. Davidson that “everyone who works form certain inspection duties. tle Paul’s epistle to the Gala- arsenal. “They’re paranoid,
Capt. Jason Neubauer at a was responsible for the safety upon the sea must study and Federal investigators recov- tians that also touched on and they think the U.S. is
news conference Sunday. of the ship, “there are many embrace” Sunday’s report, ered the black box of El Faro U.S.-North Korea relations. against them,” Mr. Carter said.
Capt. Neubauer, who led the other key factors that primar- saying it “details industry last year after a 10-month ef- However, no sooner had Mr. He said he was pleased by
investigation, said the ship’s ily caused the sinking of the practices which need change.” fort. The black box was critical Carter finished his message Secretary of State Rex Tiller-
captain “failed to understand vessel,” Mr. Bennett said in a Capt. Neubauer said TOTE to the Coast Guard’s investiga- and taken his pew than the son’s remark on Saturday that
the severity of the situation,” statement. Maritime could be fined by up tion as it contained audio re- service became something of a the U.S. has “a couple, three”
even after being warned of the The report recommended to approximately $80,000. He cordings of conversations be- tribute to Mr. Carter. For the channels through which it di-
hurricane’s intensity. Accord- civil penalties for the vessel’s added that the investigation tween the captain and other offertory hymn, pianist David rectly engages with the North
ing to the report, a few hours operator, TOTE Maritime found no criminal wrongdoing officers on the ship. Osborne played a medley that Korean government.
A4 | Monday, October 2, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X THE WALL STREET JOURNAL.
U.S. NEWS
Trump
Officials
Defend
Tax Plan
BY JOSH MITCHELL
AND WILLIAM MAULDIN
WASHINGTON—Trump ad-
ministration officials pushed
back Sunday against criticism
that the emerging GOP tax plan
would provide its biggest bene-
fits to the wealthy.
Treasury Secretary Steven
Mnuchin and White House bud-
get director Mick Mulvaney
said on Sunday news programs
that key details of the plan re-
mained undecided and thus it
was too early to know how indi-
viduals would benefit. But they
said the plan is designed, above
all, to cut taxes for middle-in-
come earners and businesses.
“The objective of the presi-
dent is that rich people don’t
get tax cuts,” Mr. Mnuchin said
MIKE THEILER/REUTERS
on ABC. “As the president has

said all along, the changes to
the income-tax system are
meant to create middle-income
tax cuts and also make corpo-
rate and business tax competi-
Chief Justice John Roberts, right, chatted with Cardinal Donald Wuerl, archbishop of Washington, Sunday at the annual Red Mass for judges and government officials. tive.”
CourttoWeighConservativeGoals
Mr. Mulvaney said on CNN
that it was impossible to deter-
mine how individual earners
would fare under the plan be-
cause details—such as the dol-
lar amounts that would deter-
BY JESS BRAVIN clerked for Justice Anthony found to discriminate against mine each income-tax bracket—
Kennedy. Some Major Cases Amendment entitles a baker black and Hispanic citizens. hadn’t been set.
WASHINGTON—The Su- With Republicans and Dem- to refuse to supply a wed- The court’s four liberals pub- The officials were mainly re-
preme Court begins a new term ocrats engaged in pitched par- Worth Watching ding cake to a gay couple. licly dissented from the un- sponding to an analysis from
Monday with a conservative tisan battles elsewhere in Carpenter v. U.S., unsigned order. the Tax Policy Center, a nonpar-
majority and a docket filled Washington, he added, some scheduled: The court will Some analysts believe the tisan group headed by a former
with longtime conservative justices may seek to show the Epic Systems Corp. v. consider whether old prece- aggressive style of the Trump Obama administration tax offi-
goals to go with it, including court operates apart from raw Lewis, Oct. 2: A conflict be- dents allowing police to see administration may affect the cial. It showed the top 1% of
cases that could curtail the politics. “Ultimately, the tween two federal statutes, telephone company call re- chief justice’s approach. In ad- households would get an aver-
power of organized labor, ex- court’s authority to resolve one that makes arbitration cords without a warrant also dition to the travel-ban case— age tax cut of $129,030 in 2018,
pand religious exceptions to le- these important questions clauses nearly ironclad, another permit authorities to seize currently on hold after the boosting their after-tax incomes
gal obligations and validate comes from it being perceived providing workers the right to without probable cause cell- president revised the order by 8.5% and lowering the share
tougher scrutiny of voter rolls. as a court and not a political take collective action. Lower phone location data tracking and made it permanent—the of U.S. taxes they would pay.
As he steered the court body,” Mr. Price said. courts are split over whether a suspect’s movements over administration is embroiled in Overall, Americans would get a
through a yearlong, eight-mem- Many of the issues being employers can block group several months. litigation over its environmen- 2.1% increase in after-tax in-
ber limbo, before Justice Neil considered have been percolat- claims in employment disputes Janus v. American Fed- tal, immigration, criminal jus- come.
Gorsuch took the bench in ing for years on their way to with an arbitration clause. eration of State, County and tice and other policies, all is- Congressional Democrats
April, Chief Justice John Rob- the high court, said Prof. David Gill v. Whitford, Oct. 3: Municipal Employees, Coun- sues that could reach the and other critics have pointed
erts crafted a series of centrist Pozen of Columbia Law School. For the first time in a de- cil 31, unscheduled: A state Supreme Court. to the analysis in their opposi-
rulings, often in controversial “There will be strong, classic cade, the court will consider employee contends he has a In addition, the White tion to the plan. Sen. Bernie
cases, that attracted votes from partisan pressures on the court, whether there is a constitu- First Amendment right to re- House itself remains under an Sanders, a Vermont indepen-
conservatives and liberals alike. and it will be difficult for the tional principle that can miti- fuse to pay union dues used unusual degree of legal scru- dent, called the plan “the Robin
chief to manage the ideological gate partisan gerrymandering for collective bargaining, de- tiny. A special counsel, Robert Hood principle in reverse.”
division,” he said. of electoral districts. spite a labor contract requir- Mueller, is investigating allega- “It is unacceptable and we’re
Still, “there may be some in- Masterpiece Cakeshop ing his contribution. The case tions related to the Trump going to fight it as hard as we
Many of the issues teresting cases this term that Ltd. v. Colorado Civil Rights is the culmination of a cam- campaign’s possible ties to the can,” he said on CNN.
being considered this will yield something other than Commission, unscheduled: In paign by conservative groups Russian government, which The GOP tax plan, worked
a pure 5-to-4 split,” he said. light of the 2015 ruling ex- to overrule a 1977 precedent both Moscow and the presi- out between administration of-
coming term have One to watch, Mr. Pozen tending marriage rights to authorizing public agencies to dent have denied. ficials and Republican leaders
percolated for years. said, questions whether police same-sex partners, the court impose such charges. Lawsuits, including one filed in Congress, would reduce from
must obtain a warrant to seize weighs whether the First —Jess Bravin by the Democratic attorneys seven to three the number of
cellphone records revealing a general of Maryland and the tax brackets with a top rate of
suspect’s movements over a pe- District of Columbia, allege the 35%. But the plan also leaves
The question now is whether riod of months. Ginsburg and Sonia Sotomayor ence between the sides. president’s continued business open the option for a fourth
the trend of the past year re- So far, the centrist bloc that on the left, or Justices Clar- Justices Thomas, Alito and operations violate a constitu- bracket with a top rate not far
flects a new consensus within coalesced around the chief jus- ence Thomas and Samuel Alito Gorsuch made clear they would tional ban on gifts from for- from its current 39.6%.
the court’s ideological center, or tice—including Justices Ken- along with Justice Gorsuch on have given the administration eign governments. Mr. Mnuchin said any reduc-
was a temporary accommoda- nedy, Stephen Breyer and Elena the right—has steered the all it wanted. They also found Should the Supreme Court tions in rates for high-income
tion to the 4-to-4 partisan split Kagan—has remained influen- court. themselves in the minority last have to hear any such cases, households “are offset with
left by Justice Antonin Scalia’s tial even after the arrival of Over the summer, the court Tuesday, when they dissented the institution’s reputation for elimination of almost every sin-
death in February 2016. Justice Gorsuch toward the end issued a series of unsigned from an unsigned order stop- independence and fairness gle type of deduction other
Zachary Price, a professor at of last term. opinions finding middle ping Georgia from executing a could be tested before a polar- than charitable giving and the
Hastings College of the Law in Justice Kennedy, a maverick ground in the dispute over black inmate with a pending ized and skeptical public. mortgage-interest deduction.”
San Francisco, said the renewed conservative, for years has held President Donald Trump’s appeal alleging bias because a “We’re in a distinctive mo- The Trump officials de-
conservative majority in some an outsize influence, joining his temporary ban on travel to juror called African-Americans ment in the development of fended the use of “dynamic
cases will feel comfortable right-leaning colleagues to ex- the U.S. by people from cer- “n—s.” constitutional law, with a scoring” to take into account
reaching 5-4 rulings. pand access to firearms and roll tain countries. In contrast to In other cases, the conven- president who is shattering economic growth projected un-
“But I do get the sense that back campaign-finance regula- lower courts, which almost tional ideological split has norms left and right,” Colum- der the tax plan in assessing its
Roberts and some of the other tions while siding with liberals universally ruled against the continued to prevail. The bia’s Mr. Pozen said. “People impact. “You can’t look at the
justices are attentive to the to expand gay rights and limit administration, sometimes court in September temporar- are expecting that might lead tax cut on a family until you re-
need to preserve the court’s the death penalty. questioning the president’s ily blocked a lower-court or- to a confrontation where the alize how much better off
reputation and legitimacy in a Recently the centrist motives, the Supreme Court’s der requiring the Texas legis- court becomes newly aggres- they’re going to be in a growing
period that’s very politically group—sometimes joined by decisions avoided provocative lature to redraw a sive about checking executive economy,” Mr. Mulvaney said
fraught,” said Mr. Price, who either Justices Ruth Bader rhetoric and split the differ- congressional district map power.” on Fox.
FROM PAGE ONE
FUNDS $27 billion hedge fund, Citadel

LLC, that he sent the staff a
stinging mass letter that read
in part, “I am disappointed that
Comeback
After lagging behind in recent years, hedge funds have kept closer pace with a mix of stocks and bonds in
some recent months.
particularly the weakening in
the U.S. dollar, investors say.
The average macro fund is
roughly flat this year, accord-
Continued from Page One after years of leading our in- Monthly performance ing to HFR.
proved environment for stock dustry we failed to deliver,” For now, the indus-
HFRI equity hedge total index HFRI fund weighted composite index Traditional 60/40 portfolio
picking that has fallen in hedge people familiar with the matter try’s gains are shared by man-
funds’ favor, with popular said. Citadel separately an- 6% agers large and small, including
stocks like Amazon.com Inc. nounced that compensation for many who came into the year
outperforming, and bets some staff would be slashed. 4 with something to prove.
against retailers also paying This year, Citadel’s flagship One of the biggest rebounds
off. fund was up more than 9% 2 is under way at Brahman Capi-
A year ago, things looked through mid-September, al- tal Corp., a New York hedge-
ugly for the industry. ready eclipsing last year’s total 0 fund firm that flew under the
Longtime managers were 5% gain. Last year was the radar for more than three de-
shutting down, and many who fund’s weakest mark in nearly –2 cades.
remained were forced to nego- a decade, the people familiar At its apex around two years
tiate their fees to satisfy disap- with the matter said. –4 ago, Brahman managed more
pointed backers. The pressure Hedge funds at large pulled than $5 billion, as principals
was compounded by a decade in $39 billion of new money Mitchell Kuflik and Robert So-
–6
of nearly uninterrupted gains this year, a reversal of $112 bil- bel bet big on hedge-fund fa-
for the S&P 500, contributing lion in outflows last year, the 2016 2017 vorite Valeant Pharmaceuticals
to dramatic outperformance researcher eVestment says. In- Source: HFR THE WALL STREET JOURNAL. International Inc. When
for low-cost, passive invest- dustry executives expect the Valeant’s stock plummeted
ment products. inflows to continue with sev- hedge fund of their own. Pri- firm, Kase Capital Management Street Journal that credit mar- from $257 to $14 a share, Brah-
Sticking around seemed eral banner fund launches in vately, many industry execu- LLC, which had dwindled to kets were “providing mid cycle man fell in turn, as the firm re-
even less attractive as manag- the months ahead, includ- tives fret that the industry, $50 million in assets under pricing for late cycle risk.” Gol- ported losses and investors
ers had to dip into their pock- ing the return of fallen star which bets on and against mar- management and lost 8% so far denTree’s main fund is up 5% pulled their money.
ets to pay out ever-rising sala- Steven A. Cohen and a multi- kets world-wide, has been per- this year. this year, the note indicates. Brahman sold Valeant stock
ries to dissuade staff from billion-dollar China-focused manently tagged with an unde- Among hedge funds girding GoldenTree didn’t respond to a last year and with what is now
leaving for flush technology fund from Ray Dalio’s Bridge- sirable patina. for a continued bumpy road request for comment. $3.8 billion of remaining cash
companies dangling seven-fig- water Associates, the world’s Fall is typically the season ahead is GoldenTree Asset Within hedge funds, macro- pivoted to new ideas like a
ure packages. largest hedge-fund firm. of hedge-fund shutdowns, and Management, a $25 billion economic-focused managers, stake in travel company Expe-
Earlier this year, for in- Few managers expect a re- this year is no exception. The firm. who try to get ahead of politi- dia Inc., people close to the
stance, billionaire Kenneth turn to the heyday of a decade well-known value investor In September, GoldenTree cal and other broader trends, firm said. This year, Brahman’s
Griffin was so frustrated with ago, when every young trader Whitney Tilson said last week warned investors in a private have mostly whiffed in predict- main fund is up 17%, the people
investment performance at his with a pulse dreamed of a he would shut his hedge-fund note reviewed by The Wall ing this year’s major moves, said.
THE WALL STREET JOURNAL. Monday, October 2, 2017 | A5
Congratulations
to America’s Farmers
and Food Processors!
Anthony Pratt at September’s Global Food Forum, which aims to support a national conversation on how we double American food production and exports to
create millions of American jobs.
After recent years of decline, American food exports

are up over 9 percent compared to last year
• Dairy exports are up 25%

• Beef exports are up 16%
• Thank you to President Trump, Secretaries Ross and Perdue
for getting beef into China for the first time since 2003
Export Food, Not Jobs !
Pratt Industries is one of the largest corrugated box manufacturers in the United States.
Our boxes save money and save the environment.
www.prattindustries.com
A6 | Monday, October 2, 2017 * *** THE WALL STREET JOURNAL.
WORLD NEWS
Catalonia Supports Secession in Vote
Hundreds hurt as
Spanish police forcibly
remove people from
polling stations
BARCELONA—The leaders
of Catalonia said voters in the
restive Spanish region over-
whelmingly backed indepen-
dence on Sunday in a referen-
dum that was boycotted by
opponents and marred by vio-
lence, putting Spain on the
brink of a political and consti-
tutional crisis.
By Jeannette
Neumann, Jon Sindreu
EDU BAYER FOR THE WALL STREET JOURNAL

and Pietro Lombardi
Catalan leaders said prelim-

inary results showed that 2.02
million votes, or around 90%
of the total, were cast in favor
of a split with Spain. Those
ballots represent around 40%
of voters Catalan authorities
declared eligible for the refer-
endum, which was outlawed
by the central government in Demonstrators confronted Spanish police officers at a sports center, designated as a polling station, on Sunday in Sant Julia de Ramis, near Girona, Spain.
Madrid as unconstitutional.
Many opponents of inde- and a move that could precipi-
pendence, or those who felt tate a full-blown political cri- Regional Tension tions were abolished and its lan- a year before the Spanish Con- On the Job
the referendum was illegiti- sis. Mr. Rajoy, a conservative, guage repressed. stitution was approved with Catalonia's unemployment
mate, boycotted the vote, would face pressure from Is Centuries Old As soon as democracy broad Catalan support. rate has been lower than the
which likely skewed the re- hard-liners in his party to reached Spain in 1931, Francesc The constitution aimed to Spanish average.
sults in favor of a “yes” vote. strip Catalonia of its auton- Macià, a former soldier in keep Spain united by giving the
Catalan authorities proceeded omy. That would at least in- The conflict over Catalonia Spain’s army, declared Catalonia military the right to defend the 30%
with the ballot in defiance of volve replacing some or all of has escalated in recent years, an independent republic. Madrid integrity of the country, but also
Madrid, which sent in thou- the members of the govern- but the clash is centuries in the made a first attempt to ad- gave Catalonia many freedoms. 25
sands of extra security forces ment in the region, which has making, including previous dress the problem by giving The spirit of that law is
to Catalonia, triggering stark considerable powers and over- failed attempts to declare Cata- Catalonia a large degree of au- now broken, both sides say. 20 Q2:
scenes of police battling civil- sees its own police force and lonia’s independence. tonomy, but Catalan president In 2006, Catalonia approved
ians on Sunday. The clashes health and education systems. Catalonia was formed as a Lluís Companys made another a regional charter to expand its Spain
15 17.2%
left 844 people injured. Mr. Rajoy, head of the cen- collection of counties that became botched attempt to declare in- autonomy, but Spanish courts
Shortly before the results ter-right Popular Party, has a independent from the Carolingian dependence three years later. found large parts of it uncon- Catalonia
were announced, Catalan Pres- voter base that largely sup- empire in the 10th century. After the Spanish Civil War, stitutional four years later. That 10 13.2%
ident Carles Puigdemont said ports a tough stance against It was first absorbed into the Spain spent almost 40 years helped transform what was
he would set in motion a po- attempts by Catalonia to split Crown of Aragon and later Spain, under the dictatorship of Gen. once moderate nationalism into 5
tential secession based on the with the rest of the country, a but retained its own government, Francisco Franco, who executed a surge of secessionism, fueled
results. “Catalonia’s citizens sentiment that is likely to have parliament and legal system until Mr. Companys and repressed by discontent about the re-
0
have earned the right to have deepened after Sunday’s 1714, when it unsuccessfully Catalonia. gion’s large transfers of tax
an independent state in the events. Still, he heads a fragile sided against Spain in the Span- The Catalan government revenue to the rest of Spain. 2008 ’10 ’15 ’17
form of a republic,” Mr. Puig- minority government and the ish Succession War. Its institu- was again restored in 1977, just —Jon Sindreu Source: Spain’s National Statistics Institute
demont said in a televised ad- scenes of injured voters THE WALL STREET JOURNAL
dress after the day of clashes threaten to sap some of his
between police and voters. political support. Sunday’s The Spanish crisis is also an ment Sunday, opening thou- and a number of towns across lona building chanted, “We
In the next few days, he events have hardened posi- irritant for other European sands of polling stations in Catalonia, officers from will vote.”
said, the Catalan government tions across the political spec- Union members, many worried schools and other local build- Spain’s national police forces, A Catalan official said there
will send the results of the trum, leaving Mr. Rajoy little that a vote in favor of secession ings. dressed in riot gear, forcibly were “dozens and dozens” of
vote to the parliament, paving room to summon the political could fuel discontent in inde- Starting Friday evening, removed people occupying shootings by Spanish police
the way for a declaration of support to broker a solution to pendence-minded regions such thousands of referendum sup- polling stations, using ham- using “rubber bullets,” which
independence. Separatists the crisis. as the U.K.’s Scotland and Bel- porters—including families mers to break down doors as seriously injured some peo-
have a majority in Catalonia’s “It would have been easier gium’s Flanders. And if it dis- with small children—occupied helicopters flew overhead. ple. A Spanish government of-
parliament. for everyone to turn a blind tracts Mr. Rajoy from dealing more than 1,000 polling sta- Police blocked people from ficial said police fired “rubber
A unilateral declaration of eye while they carried out a with economic problems dog- tions throughout Catalonia to entering some polling stations, pellets” in what the official
secession by Catalan officials serious attack on our democ- ging Spain, such as high youth avoid their closure for Sun- forcing their way into the described as an “isolated inci-
could trigger Prime Minister racy,” said Mr. Rajoy late Sun- unemployment, it could take day’s vote, said Catalan offi- buildings and removing ballot dent” when police felt threat-
Mariano Rajoy to invoke con- day before Catalan authorities the shine off one of the region’s cials. Officials from the central boxes, pulling them from the ened.
stitutional laws and revoke announced the preliminary re- brightest recovery stories. government said the figure hands of volunteer workers, —Kavita Mokha, Marina
Catalonia’s autonomy—the sults. “We did what we had to Pro-independence groups was closer to several hundred. according to witnesses. People Force and Oliver Griffin
first-ever use of those powers do.” defied the Rajoy govern- Early Sunday, in Barcelona outside one building in Barce- contributed to this article.
Most in Spain Oppose Any Split Tories Play Down

BY JEANNETTE NEUMANN
BARCELONA—David Arias,
a 49-year-old lawyer in Ma-
Brexit Fissures
drid, watched with alarm as a BY JENNY GROSS what you will see this week,”
crisis unfolded in September she told the British Broadcast-
in the Spanish region of Cata- MANCHESTER, England— ing Corp. on Sunday.
lonia, whose leaders pledged British Prime Minister Theresa She said Mr. Johnson was
to hold a referendum on inde- May on Sunday made light of “absolutely behind” her Brexit
pendence. public divisions within her top plans.
Last week, Mr. Arias hung team over her plans for Brit- In an interview with the
the yellow and red Spanish ain’s exit from the European Sun newspaper, Mr. Johnson, a
flag from the balcony of his Union, as her party gathered leader of the campaign for the
law offices in central Madrid. for its annual conference in the U.K. to leave the EU and a pos-
“We’ve flown the flag that northern city of Manchester. sible successor to Mrs. May,
RAFAEL MARCHANTE/REUTERS
represents everyone,” said Mr. The gathering, the first said any transition period
Arias, who regards the refer- since the Conservative Party, shouldn’t last “a second more”
endum as “sedition.” “The na- under Mrs. May’s leadership, than two years.
tion is facing a dangerous lost its parliamentary majority He also said the U.K.
time.” in a snap election in June, shouldn’t accept new rulings
As Catalan leaders defy comes at a difficult moment by the European Court of Jus-
Spanish authorities in their at- for the British leader as she tice during the transition pe-
tempt to stage a vote on seeks to manage splits in her riod and the U.K. shouldn’t
whether to break away from Pro-union supporters demonstrated in Madrid on Sunday as Catalonia held an independence vote. party and the electorate over make any payments for access
Spain, most Spaniards are Brexit.
against allowing Catalonia, or has oppressed their language the region. “I get emotional Separatists say Catalonia, On the eve of the confer-
any of Spain’s 16 other re- and culture and worry that during the [Catalan] anthem,” one of Spain’s wealthiest re- ence, Foreign Secretary Boris British Prime
gions, to secede. Catalonia’s push for secession added Mr. Ballesteros, who gions, would be better off on Johnson set out a series of Minister
ASSOCIATED PRESS
Spain’s 1978 constitution has deeply divided Spain, and also gives speeches in Catalan. its own, sending fewer funds aims for Brexit negotiations Theresa May
pledges to uphold the coun- Catalonia itself. Nearly 70% of Spaniards to the central government in that go beyond those outlined said her
try’s “indissoluble unity,” and According to a poll by Cata- want Spain’s regions to have Madrid. by the prime minister, under- Conservative
a top court has ruled a num- lonia’s regional government the same or less autonomy They are particularly bitter scoring the difficulty of her cabinet is
ber of times that Catalonia survey agency in June, 35% of than they already have, ac- about a 2010 court decision to political position. united.
and other Spanish regions Catalans support full-fledged cording to the Center for Soci- strike down part of a statute Over the coming days in
can’t hold a vote on indepen- independence, down from a ological Research. that would have granted Cata- Manchester, Mrs. May will
dence. peak in 2013 of around 50%. Spaniards who oppose Cat- lonia greater autonomy. Cata- seek to appeal to the Conser- to the single market after the
Nationally, only one in 10 Some pro-independence media alonia’s independence empha- lans approved that statue in a vative Party base, the majority transition.
Spaniards supports granting in Catalonia put support for size that Spain is already one referendum and saw the of whom voted for Brexit and A spokesman for Mr. John-
Catalonia and other regions secession as high as 70% of the most decentralized court’s move as politically mo- are looking for clarity on her son said the aims were in line
the possibility of becoming in- among those who planned to countries in the European tivated. long-term vision for Britain’s with the ones Mrs. May set
dependent, according to a July vote on Sunday. Union. “There are first-class Span- exit and for her to take a out in Florence.
survey by the Center for Soci- Many of those who oppose Catalonia controls its ish and second-class Spanish strong stand in negotiations. Aside from managing ad-
ological Research, Spain’s independence from Spain, or school and health-care sys- people,” said Catalan Presi- But she also is expected to versaries in London, Mrs. May
state-owned survey agency, in who don’t want to participate tems and has its own police dent Carles Puigdemont, who be careful not to reverse any faces pressure to move Brexit
the most recent available poll. in what they consider an ille- force. has led the referendum push. goodwill she built up with EU talks beyond their current im-
Around 15,000 pro-union gitimate vote, pledged to boy- “Of all the countries that Catalans, he said, “are con- leaders in a key speech in passe. Negotiations on Brit-
protesters gathered in Barce- cott the referendum. have allowed their own re- sidered and treated as second- Florence, Italy, where she ain’s future trade relationship
lona, waving Spanish flags, to Josep Fèlix Ballesteros, the gional cultures to develop, it’s class Spaniards.” sought to revitalize stalled with the EU have been held up
protest the referendum on mayor of Tarragona, one of been Spain,” said Jaime Carva- Spain’s two major political Brexit talks by saying the U.K. by the EU’s insistence that suf-
Saturday, according the cen- Catalonia’s larger cities, is jal, chief executive of a Ma- parties, the center-right Popu- would honor its financial com- ficient progress first be made
tral government’s delegation against independence. Sepa- drid-based investment bank lar Party and the center-left mitments to the EU’s current on critical issues around the
in Catalonia. Thousands more ratists have called him a “trai- and head of the foundation Socialists, as well as the cen- budget for two years after its separation itself, such as how
gathered throughout Spain. tor” during recent public Juntos Sumamos, which trist Ciudadanos, decried the planned exit. to manage Ireland’s border
Pro-union supporters dis- speeches and on social media. means “better together.” “How vote and called on their sup- “What I have is a cabinet with Britain and Britain’s fi-
agree with the claim by some “It hurts,” he said, because can they say they are reporters in Catalonia to boycott that are united in the mission nancial commitments to the
Catalan separatists that Spain he has a deep attachment to pressed? They are in charge.” it. of this government, and that is EU.
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WORLD NEWS
North Korea Dissidents Detail Rescue Bid

Fearing Pyongyang’s ing on the group’s official from leaving the country with-
email account. out government permission.
reach, network worked Cheollima sought help from The country has tightened
to get nerve-gas foreign governments for the border controls in recent
rescue of Kim Han Sol. The years, and anyone attempting
victim’s family to safety U.S., China and the Nether- or aiding an escape risks se-
lands provided assistance with vere punishment, including
BY ALASTAIR GALE travel, visas or other aspects the death penalty.
of the plan, according to the The number of North Kore-
When Kim Jong Nam, the group. ans who reached South Korea
exiled half brother of North China’s foreign ministry between January and August
JUNG YEON-JE/AGENCE FRANCE-PRESSE/GETTY IMAGES

Korean dictator Kim Jong Un, said it had no information on this year was down almost 13%
was killed with nerve gas in a the rescue, and the Nether- from last year to 780, data
Malaysian airport on Feb. 13, it lands and the U.S. declined to from the Seoul government
was evident who might be tar- comment. Other nations re- show.
geted next. fused to give assistance. “We came to meet an urgent
His 21-year-old son, Kim The family first flew to Tai- need by North Koreans for pro-
Han Sol, had similarly criti- pei, a person familiar with the tection of those in danger,” the
cized the regime in Pyongyang, relocation said. There they Cheollima representative said
which was suspected of carry- spent a tense 30 hours in the of the group’s mission.
ing out the attack. The son’s airport trying to confirm travel The Journal spoke to diplo-
bloodline made him a potential and visas for a final destina- mats, a high-level defector and
threat to the Kim dynasty. tion, this person said. Cheol- a European human-rights
What followed was a secre- lima declined to confirm the worker who helped Cheollima
tive scramble by a group of evacuation route and hasn’t evacuate the family to learn
North Korean dissidents to get Kim Han Sol, identified in a news report, and his mother and sister were spirited out of Macau. said where the family went. more about the group.
Kim Han Sol, his mother and Cheollima is one of several A high-level defector who
sister out of their Macau home evacuation with a media or- with the evacuation, a repre- seek international assistance groups that help those seeking isn’t part of the group said
and fly them to safety in a se- ganization for the first sentative of the group, Cheol- for other rescues in the future, to escape the Kim Jong Un re- Cheollima is a small but well-
cure location. time—and from its account, it lima Civil Defense, told The the representative said. gime. The representative said connected organization that
Details have been largely a appears that Kim Han Sol Wall Street Journal. “We were disappointed by it consists of North Koreans had helped North Koreans es-
mystery since February, but was targeted. Cheollima agreed to discuss refusals to protect by several both outside and, unusually, cape from their country
the group that helped the trio There were “attempts by some details of the family’s re- countries earlier this year,” within the country. through China and into South-
get out agreed to discuss the several parties to interfere” location because it expects to the person said, communicat- North Koreans are barred east Asia.
TALKS the North Korean government,

with an eye toward defusing
rising tensions between the
two countries.
talks,” but there “is a means
by which the countries can en-
gage each other.”
He added: “North Korean of-
Experts and former officials
said Mr. Trump risked provok-
ing a miscalculation by North
Korea, where officials might
nuclear weapons in exchange
for aid, which fell through after
both sides didn’t meet their
commitments. President George
violence in Charlottesville, Va.,
when Mr. Trump said “both
sides,” including white-su-
premacist groups and people
Continued from Page One The U.S. wants to determine ficials show no indication that become confused about the W. Bush initiated six-party talks protesting them, were respon-
Man hasn’t worked in 25 if Pyongyang is willing to en- they are interested in or ready Trump administration’s inten- among China, Japan, North Ko- sible for clashes that left a
years, why would it work now? gage in talks, Mr. Tillerson for talks on denuclearization.” tions. A North Korean official rea, Russia, South Korea and woman dead. Mr. Tillerson
Clinton failed, Bush failed, and said. The U.S. has “a couple, Suzanne DiMaggio, a senior recently asked The Wall Street the U.S., but those broke down distanced himself from Mr.
Obama failed. I won’t fail.” three” channels through which fellow at the nonpartisan New Journal if Mr. Tillerson would when the sides couldn’t agree Trump’s comments, saying Mr.
A State Department spokes- it directly engages with the America think tank, said Mr. keep his job. on verification and North Korea Trump “speaks for himself.”
woman on Sunday played North Korean government to Tillerson’s remarks may have conducted a rocket launch. Messrs. Trump and Tiller-
down any perception of dis- see if substantive discussions been a strategic outreach to President Barack Obama pur- son also butted heads over
agreement. are possible. China, a key North Korean ally. sued “strategic patience” to try Iran. Mr. Trump chose to cer-
“The president is right. It is “We are probing. Stay “If the Trump administra-
Messrs. Trump and to pressure North Korea to tify Iran’s compliance with the
obvious that Kim Jong Un isn’t tuned,” Mr. Tillerson told re- tion can demonstrate to the Tillerson have come to the negotiating table, Iranian nuclear deal in July,
listening but our mandate is to porters after meetings with Chinese that it is making a se- which also failed to change but only after a fight with ad-
keep trying and the world China’s president and senior rious effort to engage Pyong-
disagreed on several North Korea’s calculus. visers, including Mr. Tillerson.
stands behind us,” State De- officials. “We ask, ‘Would you yang, it might convince them to issues this year. The president and his chief The president voiced his dis-
partment spokeswoman like to talk?’ We have lines of apply more pressure to Pyong- diplomat have disagreed on pleasure with the discussions
Heather Nauert said. She communication to Pyongyang. yang,” she said. “But Trump other issues in the past few in an interview with The Wall
added that diplomatic chan- We’re not in a dark situation, blew that out of the water.” months. That included staffing Street Journal in July, saying,
nels won’t be open forever for a blackout.” Richard Haass, president on The U.S. has been struggling choices at the State Depart- “I have a lot of respect for Rex
Mr. Kim, who took power after R.C. Hammond, a senior the U.S. Council on Foreign with its diplomatic approach to ment, with both sides pointing and his people.…It’s easier to
the death of his father, Kim aide to Mr. Tillerson, said later Relations, said via Twitter that North Korea for nearly three fingers over the slow pace at say they comply. It is a lot
Jong Il, in late 2011. Saturday that Mr. Tillerson Mr. Tillerson should resign decades. President Bill Clinton which officials have been nom- easier. But it is the wrong
Mr. Tillerson told reporters didn’t mean to suggest that over the apparent disconnect reached a deal with North Ko- inated to senior posts. thing. They don’t comply.”
in Beijing on Saturday that the there is “an organized negotia- toward North Korea inside the rea under which it committed In August, the two clashed —Mike Bender
U.S. is in direct contact with tion or any sort of larger administration. to freezing its development of over Mr. Trump’s response to contributed to this article.
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A10 | Monday, October 2, 2017 NY THE WALL STREET JOURNAL.
WORLD NEWS
U.S. Weighs Move to Block Taliban Envoys

Effort draws rare end the chance for a peaceful
settlement to the war.
internal dissent For months, the Trump ad-
by group of State ministration has been split be-
tween two camps on peace talks,
Department specialists current and former officials said:
The “fight and talk” group is
BY DION NISSENBAUM pushing the U.S. to aggressively
pursue peace talks with the Tali-
WASHINGTON—The Trump ban now, even though the
administration is considering a group’s battlefield victories have
plan that would aim to close the given it more political bargain-
Taliban political office in Qatar, a ing power. The people who
move that triggered an unusual signed the memo belong to this
internal protest by State Depart- camp, current and former offi-
ment officials who said it would cials said.
undermine U.S. interests in Af- “There’s a new team in place
ghanistan, according to current wanting to try new things,” said
and former U.S. officials. one former U.S. official. “Shak-
A group of State Department ing up the peace process and
specialists on South Asia filed kicking out the Doha negotiators
ANDREW RENNEISEN/GETTY IMAGES

the rare internal “dissent chan- would be a very unfortunate way
nel cable” on Friday to urge that of doing that.”
the U.S. keep the Taliban office The “fight, then talk” camp,
open and launch more-intensive including Lt. Gen. H.R. McMas-
talks to end the 16-year-old war ter, Mr. Trump’s national secu-
in Afghanistan, according to rity adviser, wants to deliver a
people familiar with the move. battlefield blow to the Taliban
The memo was signed by a before pursuing serious peace
handful of officials, the people talks.
said, including some longtime U.S. service members at Camp Bost in Helmand Province last month. The U.S. is raising by 4,000 its military forces in Afghanistan. Officials at the National Secu-
State Department employees rity Council, which is run by Gen.
whose contracts with the de- the system will continue these open to help ensure that a seri- ban office in Qatar could under- requests for comment. McMaster, said the modest in-
partment expired on Friday and efforts. Our willingness to sup- ous push for peace talks isn’t put mine President Donald Trump’s A spokesman for President flux of new American forces,
weren’t renewed. port a reconciliation process is on the back burner while the U.S. attempts to extricate the U.S. Ashraf Ghani recently said that combined with Mr. Trump’s
“We are grateful for the pre- not in question; the willingness sends 4,000 more U.S. forces from a war that has claimed the Afghan government wants to pledge to keep troops in Afghan-
vious team’s hard work in trying of the Taliban to seriously en- into Afghanistan to try to break more than 3,500 American lives pursue serious peace talks. Qatar istan as long as they are needed,
to promote peace and reconcilia- gage is.” a battlefield stalemate with the since 2001, according to people said the office has operated with will convince the Taliban that
tion,” said Heather Nauert, a The unclassified memo to top Taliban. familiar with the move. U.S. and Afghan consent. they can’t win on the battlefield.
State Department spokeswoman. State Department leaders urged In the internal memo, the ex- The embassy of Afghanistan The Taliban said recently that —Craig Nelson
“Talented officials from within them to keep the Taliban office perts said that closing the Tali- in Washington didn’t respond to closing the Doha office would contributed to this article.
Canada Attack Suspect Held France Probes Marseille Stabbings BY MATTHEW DALTON French Interior Minister Gé- tured lone-wolf assailants,
BY VIPAL MONGA “espousing radical ideology.” stabbed the officer, then ran off. rard Collomb said authorities who were inspired to act by
AND PAUL VIEIRA Police officers investigated the About three hours later, po- PARIS—French authorities have launched a national in- Islamic State propaganda
complaint and interviewed the lice stopped a man in a U-Haul opened a terror investigation vestigation into the stabbing. rather than directed by the
TORONTO—Canadian offi- suspect, but found no cause to truck. An officer recognized Sunday after a man stabbed “This act could be terrorist, group’s leaders in Syria and
cials identified the man who press charges, he said. the name on the license as two women to death around a but we can’t confirm it right Iraq.
stabbed a police officer and He said initial findings from similar to that of the owner of train station in the center of now,” he said. In September, a knife-wield-
drove a van into four pedestri- the investigation suggested the Chevrolet. The driver fled, Marseille. The stabbing marks the lat- ing man attacked a soldier at a
ans in a suspected terrorist at- the suspect was acting alone. leading to a high-speed chase French soldiers patrolling est in a drumbeat of terrorist subway station in Paris.
tack in Edmonton, Alberta, Sat- Edmonton police said that on through downtown Edmonton. the area shot and killed the attacks in France. Islamic Roughly 7,000 soldiers are
urday night as a Somali refugee Saturday night, near the city’s The driver of the truck hit four man after his rampage near State leaders have targeted deployed across the country to
who had been known to police. Commonwealth Stadium, the pedestrians before his van the Saint-Charles rail station, the nation, orchestrating the protect public spaces from at-
At a news conference in Ed- unidentified man crashed a flipped and he was captured. according to a spokeswoman assaults of Nov. 2015 that left tacks—and have frequently
monton, Marlin Degrand, an white Chevrolet Malibu through Edmonton Police Chief Rod for the Paris prosecutor’s of- 130 dead around Paris. been the target of assailants.
official from the Royal Cana- traffic barricades and hit a po- Knecht confirmed during a fice, which handles terrorism Since then, Islamist mili- Officials declined to discuss
dian Mounted Police, said lice officer, sending him flying news conference that there investigations across the coun- tants have carried out roughly whether Sunday’s assailant
someone had filed a complaint 15 feet through the air. The was an Islamic State flag in try. a dozen attacks in France. was motivated by radical Is-
against the suspect in 2015 for driver jumped out of the car and the Chevrolet Malibu. Speaking in Marseille, More recent assaults have fea- lam.
THE WALL STREET JOURNAL. * * * * Monday, October 2, 2017 | A11
WORLD NEWS
Consumer Loans Fuel China Housing WORLD WATCH

CANADA
BEIJING—China’s govern-
ment hoped more household Borrowing, Not Shopping Leftist Party Elects
borrowing would help the Household loans are becoming a bigger share of Chinese debt, but Its First Sikh Leader
economy become more con- soaring consumer credit hasn’t prompted a rise in consumption.
sumer-oriented. But instead of The left-leaning New Demo-
shopping, many Chinese are Debt as share of total bank Annualized growth, seasonally cratic Party elected Jagmeet
spending the money on real es- loans* adjusted Singh, a Sikh, as its new leader,
tate, undermining Beijing’s ef- making him the first nonwhite
Household† Corporate Retail sales Short-term
forts to cool that market. consumer loans leader of a major federal party.
Chinese banks, encouraged 100% 120% Mr. Singh captured 53.8% of
by policy makers, have re- ballots in the first round of voting
cently been lending more to 80 90 at a convention in Toronto, beat-
households as companies sink ing out challengers Charlie Angus,
perilously deep into debt. At 60 60 Niki Ashton and Guy Caron.
first, banks did this with mort- Mr. Singh will succeed Tom
gages; this year they have Mulcair, who lost a leadership
40 30
stepped up short-term con- review by the party last year.
sumer loans. —Vipal Monga
THOMAS PETER/REUTERS
But signs are emerging that 20 0

such loans, rather than funding GERMANY
such middle-class trappings as 0 –30
cars, household appliances or 2007 ’10 ’15 ’17 2016 ’17
Nation Holds First
gadgets, are instead flowing to
*Excludes lending to financial institutions †Includes mortgages, consumer loans and other Same-Sex Weddings
China’s stubbornly hot prop- family financing
erty market, padding home High-rise apartment buildings tower over Beijing. Middle-class Sources: Wind Info (debt); E-house China R&D Institute The nation celebrated its first
purchases when mortgage borrowers have poured funds into China’s hot property market. (retail sales, consumer loans) THE WALL STREET JOURNAL. same-sex weddings after a new
loans aren’t enough. law took effect.
In August, a Beijing home- Regulators have taken note. Town halls in Berlin, Ham-
buyer who provided only her In the past few weeks, local Central Bank Offers To qualify, banks must meet recent weeks, a growing chorus burg and elsewhere opened
surname, Zhu, took out a one- branches of the central bank central-bank criteria on lending of voices, mostly from Chinese their doors to mark the event,
year loan of 100,000 yuan and the China Banking Regula- Break to Lenders to small businesses. For in- banks and brokerage houses, made possible by a surprise
(around $15,000) from Bank of tory Commission have urged stance, banks whose outstand- has also called on the central vote in Parliament three
China, a commercial lender. banks to check how borrowers ing loans to small firms account bank to act amid signs that months earlier.
She used it toward the down are using short-term consumer BEIJING—China’s central for 10% of total loans will re- tight monetary policy is start- Gordon Holland, a registrar in
payment on a two-bedroom loans. bank said it would free up ceive the largest reduction of ing to weigh on growth. Berlin’s Schöneberg district, said
apartment—despite rules for- Banks have stepped up mar- funds for banks that boost one percentage point in their re- The reserve-requirement ra- the locality presided over the
bidding such borrowing. keting of such loans. At some lending to small businesses, in serve ratio. Based on its own tio varies depending on the size country’s first same-sex wedding.
Ms. Zhu, who works for a banks, applicants can get ap- a targeted measure to balance calculation, the central bank said of the bank. At 17% of all de- About 60 guests and an equal
state-owned financial company, proved within minutes. support for the economy with- the cut will apply to all large posits for big banks, the ratio is number of journalists packed into
said she had little choice after China Merchants Bank, for out aggravating already high and midsize commercial banks among the highest in the world. the town hall to witness the
the city government tightened example, has a “lightning-loan” corporate debt. and about 90% of the country’s Saturday’s targeted-easing marriage of Karl Kreile and his
down-payment requirements in service, where customers can The People’s Bank of China city-level commercial banks. policy doesn’t change the over- partner of 38 years, Bodo Mende.
March and they had borrowed borrow as much as 300,000 said it would reduce the The announcement follows all tone of China’s monetary —Associated Press
all they could from family. yuan by filling out an applica- amount of reserves select a notice issued this week by policy, the central bank said,
“Consumer loans were our tion on the bank’s mobile app. banks are required to keep with the governing State Council, adding that it will continue to UZBEKISTAN
only option,” she said. The lender can quickly review the central bank by between a which urged the central bank to adopt a “prudent and neutral”
New short-term consumer the applicant’s credit record, half and one percentage point help lower financing costs for monetary stance. Dissident Writer
credit surged 160% to 1.27 tril- income and financial assets via starting in 2018. small and private businesses. In —Lingling Wei Is Released From Jail
lion yuan in the first eight an online system, then send an
months of the year from the approval by text. Uzbek police released dissi-
year-earlier period, according The bank’s representatives to do.” But in China, “it doesn’t Mortgages form the lion’s the Washington-based Insti- dent writer Nurulloh Muhammad
to data from the People’s Bank have also taken to cold-calling look like that’s happening.” share of household debt, which tute of International Finance— Raufkhon after detaining him
of China, the central bank. to market their consumer loans. With few investment op- now accounts for the equiva- on par with the U.S., the Euro- last week on his return from ex-
However, growth in consump- Eswar Prasad, a former top tions, consumers see property lent of 46% of China’s gross pean Union and Japan. ile on charges of spreading anti-
tion as measured by retail China hand at the International as a fail-safe avenue for stor- domestic product, compared For banks, the shift toward government propaganda.
sales rose just 10.4% in August, Monetary Fund and now a pro- ing their wealth. with 17% in 2008, and 33% of household lending is crucial: The detention of Mr. Raufk-
in line with recent years. fessor at Cornell University, The government has encour- outstanding bank credit, up Few Chinese households have hon, the first prominent dissi-
E-house China R&D Insti- said strong consumer lending aged a rebalancing of debt from 18% a decade earlier. defaulted on their borrowings, dent to return to Uzbekistan
tute, an independent Chinese can be good both for house- away from the corporate sector China’s savings rate is still often backed by properties since the death of its longtime
research firm, estimates that holds and the broader economy. toward households. In the years high compared with the West. that have soared in value. By leader Islam Karimov, raised
at least one-third of short- “People should be consum- since the global financial crisis However, Chinese households contrast, corporate defaults questions about the new presi-
term consumer loans issued ing out of their higher future when property prices in China now owe the equivalent of have gone up in recent years dent’s efforts to change the
since March have gone toward income,” he said. “That’s what took off, buyers increasingly 98% of the average annual in- as economic growth slows. country’s image.
property purchases. a financial system is supposed turned to banks for mortgages. come, according to data from —Grace Zhu and Chao Deng —Reuters
FROM PAGE ONE
SALES Preparing your family to nurture a legacy

is as important as preparing to pass it on.
WISE/EPA-EFE/REX/SHUTTERSTOCK/EPA/SHUTTERSTOCK
Continued from Page One

breach.
Equifax didn’t respond to
requests for comment. An
We call a realization like this an Unlock.
Equifax spokeswoman previ-
ously said the company takes
seriously its responsibility to At Wells Fargo Wealth & Investment Management, our expertise is
protect the security of con- identifying insights that better enable our clients to look at their
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“We have taken short-term wealth. It’s led us to become one of the largest investment and
remediation steps and con-
tinue to implement and accel- wealth management providers in the country.
erate long-term security im-
provements as part of ongoing
actions to help prevent this Equifax said it discovered a massive data breach in late July.
type of incident from happen-
ing again,” she said. Kelley, who as Equifax’s chief earnings call the next morn-
Mr. Kelley didn’t respond to legal officer was ultimately re- ing. The company’s usual rules
multiple requests for comment. sponsible for approving them, barring trading for executives
Mr. Kelley’s position at according to people familiar after an earnings report would
Equifax differed from peers at with the approval process. have made Friday, July 28, or
rival credit-reporting compa- SEC Chairman Jay Clayton Monday, July 31, the first day
nies in that he had broad re- appeared to confirm that the they were allowed to trade, ac-
sponsibilities beyond legal sales are now being investi- cording to a person familiar
services, according to people gated by his agency in an ex- with the company.
familiar with the industry. change with Sen. John Ken- On Aug. 2, Equifax con-
He is one of the senior Equi- nedy (R., La.) during a Senate tacted Mandiant, the cyber-in-
fax executives in charge of se- Banking Committee hearing vestigations division of Fire-
curity. The company’s former last week. “I’m glad to hear Eye Inc. to probe the
chief security officer, Susan that you’re investigating,” the breach. Mandiant was hired by
Mauldin, reported to him, ac- senator said to Mr. Clayton, Equifax’s outside counsel, and
cording to people familiar with who replied, “Thank you.” Mr. Kelley likely would have
the company. She, along with Equifax has said the execu- approved that decision, ac-
the company’s chief informa- tives, who included finance cording to another person fa-
tion officer, retired a week after chief John Gamble, were un- miliar with the matter.
the hack was publicly disclosed aware of the hack at the time Mr. Kelley, who goes by “J”,
in early September. of the share sales, which net- joined Atlanta-based Equifax in
Mr. Kelley was involved in ted the three executives nearly 2013 from the law firm King
hiring Ms. Mauldin for her $1.8 million in total, according & Spalding, where he had
role and was her main contact to company filings. worked for 27 years. King
among senior leadership, both The company’s board is do- & Spalding is one of the law
for flagging potential issues ing its own review to learn firms handling legal issues per-
and for capital requests, ac- more about the trades, one of taining to the Equifax breach.
cording to one of those people. the people familiar with the The law firm handled some
Equifax put the chief legal matter said. of Equifax’s legal work for
officer in charge of cybersecu- The executives don’t appear years before the breach,
rity so that the chief security to have been involved in meet- though Mr. Kelley wasn’t one
officer would report to an un- ings about the breach, and the of the lawyers assigned to the
biased executive, someone share sales were made during account, according to peo-
who didn’t have to choose be- a period when they are per- ple familiar with the matter.
tween IT and cybersecurity mitted, the person said. The Mr. Smith, the former CEO, wellsfargo.com/Unlock
when allocating money, ac- sales’ approval from the chief recommended hiring Mr. Kel-
cording to the same person. legal officer’s office has ley after Equifax’s previous
Mr. Kelley’s predecessor also shifted the board’s focus to chief legal officer, Kent Mast,
oversaw security. Mr. Kelley, the person added. decided to retire.
Mr. Kelley is also in charge of It isn’t known when Mr. Mr. Kelley received total
government and legislative rela- Kelley became aware of the se- compensation in 2016 of some
tions, as well as corporate gov- curity breach, which Equifax $2.8 million, according to the
ernance and privacy functions. said its security staff discov- company’s proxy statement. Investments and Insurance Products: NOT FDIC Insured ▶ NO Bank Guarantee ▶ MAY Lose Value
Three Equifax executives ered on July 29. The company He received a “distinguished” Wells Fargo Wealth and Investment Management, a division within the Wells Fargo & Company enterprise, provides financial
products and services through bank and brokerage affiliates of Wells Fargo & Company. Brokerage products and services offered
sold shares on Aug. 1 and Aug. said it patched a vulnerability rating from the company’s through Wells Fargo Clearing Services, LLC, a registered broker-dealer and non bank affiliate of Wells Fargo & Company.
2. that was exploited for the board for the year in part be- Bank products are offered through Wells Fargo Bank, N.A.
The sales were reported in hack. cause of his work on the com- © 2017 Wells Fargo Bank, N.A. All Rights Reserved. CAR061705329
company filings to the Securi- Equifax released its earn- pany’s global security.
ties and Exchange Commission ings report after the market —Robert McMillan
on Aug. 3 by a deputy of Mr. close on July 26 and held its contributed to this article.
A12 | Monday, October 2, 2017 * * THE WALL STREET JOURNAL.
IN DEPTH
BUST found himself on the outside as

the investigation grew, accord-
ing to people familiar with the
matter. He knew Messrs. Sood
Continued from Page One and Dawkins were cutting him
“Coach Pitino is not the target out of business meetings, and
of any criminal investigation,” investigators were scrutinizing
said Mr. Pence. possible schemes that had little
The investment adviser co- or no connection to Mr. Blazer.
operated for almost three years, For example, a July conver-
including a close partnership sation caught on a wiretap of
with undercover agents from Mr. Dawkins’s phone was the
the Federal Bureau of Investiga- first indication of $100,000 that
tion, according to court docu- Adidas had pledged to the fam-
ments and a person familiar ily of a top high-school recruit,
ANGELA WEISS/AGENCE FRANCE-PRESSE/GETTY IMAGES

with the matter. They said Mr. Brian Bowen. Prosecutors al-
Blazer, 47 years old, helped dole leged the aim was to lure Mr.
out hundreds of thousands of Bowen to Louisville and secure
dollars in bribes in dozens of his allegiance to Adidas through
recorded meetings in Las Vegas, an endorsement contract.
Miami, New York and else- Adidas has said it was un-
where. aware of any misconduct and
An FBI spokeswoman and a would cooperate with authori-
spokesman for the Manhattan ties. Mr. Bowen’s father de-
U.S. Attorney’s office declined clined to comment. Mr. Bowen,
to comment. now a Louisville freshman,
The arrangement began after didn’t participate in the team’s
the Manhattan U.S. Attorney’s first practice on Sunday, a Lou-
office told Mr. Blazer in the fall isville spokesman said.
of 2014 that he could face Acting Manhattan U.S. Attorney Joon H. Kim explains the criminal charges announced last week, including against former referee On July 27, while in Las Ve-
charges. That trouble stemmed Rashan Michel, below. Investment adviser Marty Blazer was identified as Cooperating Witness-1 in court documents. gas for meetings, Mr. Blazer
partly from a Securities and Ex- met with Mr. Dawkins, an un-
change Commission investiga- work with him and Mr. Dawkins several people at a restaurant in dercover FBI agent, a Louisville
ANDY MEAD/YCJ/ICON SPORTSWIRE/ASSOCIATED PRESS; MARK J. TERRILL/ASSOCIATED PRESS(PERSON)
tion of Mr. Blazer’s investment to recruit college athletes as cli- Las Vegas, the complaints said. assistant coach and the director
firm. ents, the complaints allege. In Prosecutors alleged it was a of an Adidas-sponsored youth
March 2016, Messrs. Sood and meeting to arrange paying bas- basketball program in a hotel
Blazer met with Messrs. Dawk- ketball coaches at the Univer- room, according to one of the
Long shot ins and Evans at a restaurant in sity of Arizona. Mr. Sood was complaints.
He hoped to reduce any pen- South Carolina, the complaints charged last week. The men allegedly discussed
alties he might face by some- said. By late April, the FBI had a paying the family of another
how leading prosecutors to big- Over the next few months, wiretap on the phone of Mr. high-school player to bring him
ger, more prominent crimes, Mr. Blazer regularly spoke with Blazer’s former business part- to Louisville—and what Adidas
though he considered the strat- Mr. Evans, who moved to a new ner, and Arizona assistant coach would likely contribute to the
egy a long shot, said a person coaching job at Oklahoma State Emanuel Richardson was drawn cause. The Louisville coach
familiar with Mr. Blazer’s think- University, and allegedly dis- into the alleged scheme, accord- wasn’t identified in the com-
ing. cussed recruits and gave the ing to prosecutors. He was plaint. A Louisville spokesman
Mr. Blazer, known to some coach cash. Mr. Evans promised charged last week. His lawyer declined to comment on the in-
by the nickname Blaze, told in- to send players to Mr. Blazer, couldn’t be reached for com- vestigation.
vestigators he had bribed col- according to the complaints. ment.
lege coaches to steer players to By last October, Mr. Evans In early May, Mr. Dawkins,
him—and knew other people hadn’t produced any clients for the sports agent, was fired from Hot recruit
who would do so, prosecutors Mr. Blazer, and the investigation ASM Sports after an investiga- Investigators later learned
said last week. seemed stagnant, according to a tion by the NBA players’ union through phone records that
In the spring of 2015, Mr. complaint and people familiar found he had misused a client’s James Gatto, an Adidas execu-
Blazer started making connec- with the matter. Still working credit card. Mr. Sood told Mr. tive charged as part of the in-
tions with agents and middle- without a signed cooperation Dawkins he would help him vestigation, and Mr. Pitino, the
men who he thought might lead agreement, Mr. Blazer grew start his own management com- Louisville head coach, spoke
to bribe-seeking coaches, ac- concerned that he might still pany, according to the com- several times by phone in May
cording to prosecutors. Few face criminal charges and plaints. and early June, just before Mr.
coaches or players Mr. Blazer prison time, one of those people Bowen decided to attend Louis-
encountered while working un- Blazer that led him to cooperate he told an unidentified friend said. “Marty was desperate,” ville, according to a complaint.
dercover seemed aware of or with federal agents began in who was a sports agent that he the person added. A lawyer for Mr. Gatto didn’t re-
bothered by his previous prob- 2013. Securities regulators were wanted to pay college coaches The FBI was brought in last spond to requests for comment.
lems. scrutinizing a firm he co- who would use their influence fall to work on the case, people When the charges were un-
By 2008, he managed about founded with another adviser to send athletes to him as cli- familiar with the investigation sealed Sept. 26, acting Manhat-
$50 million in assets and had named Munish Sood. According ents. said. There was a promising tan U.S. Attorney Joon H. Kim
several athletes as clients. One to a complaint filed by the SEC new lead: Mr. Michel told Mr. said they revealed “the dark un-
early client was former National in May 2016, one of Mr. Blazer’s Blazer that Chuck Person, a for- derbelly of college basketball.”
Football League running back clients, a pro athlete, claimed he The referee mer NBA star working as asso- About 10 days earlier, Mr.
Kevan Barlow, whom Mr. Blazer had forged documents authoriz- The complaints allege that ciate head coach at Auburn Uni- Blazer had pleaded guilty to
recruited by ingratiating him- ing transfers of $450,000 and the agent introduced Mr. Blazer versity, was looking for money, five counts in a Manhattan fed-
self with family members dur- $100,000 from the client’s ac- to Rashan Michel, a former Na- according to the criminal com- eral courtroom, but the court
ing Mr. Barlow’s senior year at count to limited-liability compa- tional Basketball Association plaints. filings were sealed until last
the University of Pittsburgh, ac- nies related to two planned referee who ran a high-end In late November, Messrs.
Auburn associate week.
cording to Mr. Barlow’s uncle, movies, tentatively titled “Ma- men’s clothing company in At- Michel and Blazer met with Mr. head coach Chuck Four of the counts were re-
retired NFL running back Chuck fia” and “Sibling.” lanta that outfitted professional Person at an Alabama restau- lated to the SEC civil case,
Sanders. A lawyer for Mr. Sood didn’t athletes. A lawyer for Mr. rant, while FBI agents con-
Person, who was which resulted in penalties and
Once Mr. Barlow turned pro- respond to requests for com- Michel, who was charged last ducted surveillance, the com- charged last week. interest totaling more than $1.5
fessional in 2001, Mr. Blazer be- ment. week, didn’t respond to re- plaints said. Authorities gave million. The fifth count related
gan taking out loans in the The agency accused Mr. quests for comment Sunday. Mr. Blazer $5,000 in cash, to wire fraud in a scheme “from
player’s name, according to Mr. Blazer of moving money from Mr. Michel allegedly con- which Mr. Blazer gave to Mr. in or around 2000 through
Sanders. Mr. Barlow didn’t real- another client’s account to nected Mr. Blazer to Christian Michel, who handed the money At a bar in Miami, Mr. Blazer 2013” to make loans and pay-
ize he was facing a shortfall of make the first client whole. The Dawkins, an agent with ASM to Mr. Person in his car. A law- offered Mr. Sood a potential ments to college athletes, ac-
nearly $4 million until after he SEC said Mr. Blazer lied to in- Sports who the former referee yer for Mr. Person couldn’t be partner and financial backer for cording to the court records.
retired from football in 2007, vestigators when they con- said had paid bribes to college reached for comment. Mr. Dawkins, prosecutors said. It won’t be clear for months
said Mr. Sanders. Mr. Barlow fronted him about the transfers, coaches, according to the com- By December, the govern- The potential partner was actu- what, if anything, Mr. Blazer
declined to comment. saying they had been autho- plaint. Mr. Dawkins recom- ment had secured a court-au- ally an undercover FBI agent. gained in return for helping the
Mr. Barlow filed a complaint rized by both clients. mended speaking with Lamont thorized wiretap on Mr. Per- Another undercover agent government. According to his
with the Financial Industry Reg- In the spring of 2015, Mr. Evans, then an assistant coach at son’s phone, according to the joined the group later as a signed cooperation agreement,
ulatory Authority. Mr. Blazer Blazer worked through old con- the University of South Carolina. complaints. Investigators heard “business associate.” he faces from two years to 67
responded that the player had tacts to meet people who might Messrs. Dawkins and Evans Mr. Person falsely tell a player’s Mr. Blazer worked closely years in prison, though prose-
depleted his accounts “despite lead him to possible criminal also were charged last week. mother that Mr. Blazer had ad- with the undercover FBI agents, cutors said they would consider
numerous warnings about his activity. He began recording Their lawyers couldn’t be vised NBA Hall of Famer arranging meetings at fancy ho- supporting a shorter sentence.
spending habits.” They settled phone calls and meetings, the reached for comment. Charles Barkley, who played col- tels and expensive steakhouses, Martin A. Dietz, a lawyer for
for $850,000 in 2011, according criminal complaints said. In December 2015, Mr. Blazer lege basketball at Auburn. according to a person familiar Mr. Blazer, said his client “fully
to regulatory records. According to the criminal asked Mr. Sood, his former In March, FBI agents with the case. accepts responsibility for his ac-
The SEC investigation of Mr. complaints unsealed last week, business partner, if he would watched as Mr. Sood met with Still, Mr. Blazer sometimes tions.”
YOGA urism business, which we don’t,

we have to be able to say this
activity promotes the sale of
your farm commodity,” says
Dr. Vito DelVento, manager of
the District of Columbia De-
partment of Health’s animal-
services program, bans animals
Continued from Page One Robert Wheeldon, director of beyond common household
have a hard time being pres- the Linn County Planning and pets from within district limits.
ent,” Ms. Morse says, while Building Department. “How People can apply for a special
“goats have a sense of calm does goat yoga promote the permit for, say, a horse show or
about them.” sale of her farm commodity?” circus. The department ap-
As the new approach spread Ms. Morse has pressed on, proved the landscaping goats
across America, though, some holding classes at a bed-and- after the cemetery furnished
aspiring goat yogis have butted breakfast and a vineyard and li- proof a veterinarian had exam-
heads with local officials who censing her brand. While goats ined them, Mr. Williams says.
say health codes and land-use present some challenges—they In addition, Dr. DelVento
rules don’t contemplate the nibble on cellphones, purses says, the goats would need to
commingling of livestock and and patterns printed on yoga be tended by a U.S. Agriculture
students of the practice rooted mats—they offer something Department-licensed animal ex-
EUGENE GARCIA/EPA/SHUTTERSTOCK
in ancient India. unique to humans, she says. hibitor. Mary Bowen, the Mary-
Tracy Longoria began host- “When they chew their cud land farmer who agreed to pro-
ing goat yoga in May on her they go into this meditative vide the goats, says she applied
Manchester, Conn., farm after state,” she says. “When you’re for a license but hasn’t received
reading about Ms. Morse’s ses- around that you soak up that it.
sions. She hired a local instruc- energy and it’s hard to think Then there’s Washington’s
tor for sessions that proved about anything else.” “no touch” policy barring direct
popular, including among the This spring at the Congres- contact between humans and
young goats, who loved jump- sional Cemetery, Ms. Carnes animals beyond household pets.
ing on yogis’ backs. Goat yoga has spread nationwide since last year; above, practitioners in Glendale, Calif., in May. read about goat yoga and “Baby goats are probably
Ms. Longoria is ready for raised the idea with partici- one of the most fun animal spe-
any goat eventuality. “If a goat an inquiry from neighbor Mark inquires after the ruling. “they just said, ‘no, we wish we pants in her “yoga mortis” cies—they are a blast,” says Dr.
goes potty, we have people Connors. Goat yoga, says Gary Ander- could help you,’ ” she says. “I classes at the cemetery. They DelVento, who has farm ani-
walking around with pooper The retired businessman in son, Manchester’s Director of was devastated. I quit my job were “crazy to try it,” she says. mals outside the District and
scoopers,” she says. “We are August said he asked officials Planning and Economic Devel- and I was trying to make this She spoke with Paul Wil- has raised goats. “But the fact
ready.” whether the zoning code per- opment, “was indeed custom- work.” liams, president of the non- that we have baby goats jump-
Then came the cease-and-de- mitted the sessions. Among ary to agricultural uses and not Aiming to preserve farm- profit that manages the ceme- ing on people and interacting
sist order in July from the local other things, he was worried primarily a use relating to land, the county hasn’t adopted tery, about trying it with the with people obviously violates
zoning-enforcement office. “It about the health risks of human health and recreation.” Oregon’s agritourism-permit- goats they had twice hired over our ‘no touch’ policy.”
is hereby ORDERED,” the order contact with farm animals. Ms. Morse, the goat-yoga pi- ting program that lets farmers the past several years to eat Mr. Williams says he will try
ordered, that she cease using “It’s not a goat yoga story,” oneer, locked horns with regu- host commercial events. And down unwanted plants. again next year when Mrs. Bo-
her farm “as a hosting location he said. “It’s a zoning story.” lators after she contemplated a under state law, agritourism ac- The cemetery planned to wen has a fresh herd of kids. He
for ‘yoga with baby goats.’ ” Ms. Longoria appealed, and loan to buy a new farm that tivities must promote the agri- hold goat classes in a pen in a will seek a no-touch-policy ex-
The missive, issued on the the zoning-appeals board would better suit the business. cultural product produced on grassy area. In June, Mr. Wil- emption.
grounds that her “rural resi- ruled in her favor, finding the When she approached Linn the land. Ms. Morse doesn’t liams sought permission from “We’re really trying to offer
dence” property wasn’t zoned code’s definitions of farming County officials last autumn to breed her pet goats or sell their the health department. a service,” says Mrs. Bowen,
for health and recreation use, and agriculture overly vague. ensure the enterprise complied milk, meat or hides. The “no” came that month. “that is good for people’s men-
appears to have originated in Mr. Connors didn’t respond to with Oregon’s land-use rules, “Even if we had the agrito- The capital’s health code, says tal health and physical health.”
THE WALL STREET JOURNAL. * * * * NY Monday, October 2, 2017 | A12A
GREATER NEW YORK

New York Crews Hit Puerto Rico Far-Flung
New York state has the largest Puerto Rican population outside of
Puerto Rico.
Hundreds of city and New York previously de- nection to Puerto Rico. and four Black Hawk helicop-
N.Y. 1,081,110
ployed 60 National Guard sol- “People are struggling for ters to the island.
state employees help diers and was preparing to send electricity, for food, for water, New York City recently pub-
Fla. 1,067,747
the crippled island 245 military personnel to aid for all the basics,” Mr. de Bla- lished a list of needed donation
local law enforcement, help sio told a crowd at a fire sta- items: diapers, baby food, bat- N.J. 470,143
recover from Maria with debris removal and set up tion in Brooklyn. “And the teries, first-aid supplies and
donation drop-off locations 700,000 New Yorkers who are feminine hygiene products. Pa. 444,263
BY ZOLAN KANNO-YOUNGS throughout the U.S. territory, proud Puerto Ricans, we will Henry Jackson, deputy com-
Mass. 319,042
according to Mr. Cuomo’s office. not forget what Puerto Rico is missioner for technology of the
New York emergency work- A total of 147 city employ- going through.” city’s Office of Emergency Man- Source: Census Bureau 2016 ACS THE WALL STREET JOURNAL.
ers have spent more than a ees have traveled to the is- Hurricane Maria, the stron- agement, said in a phone inter-
week in Puerto Rico rebuilding
infrastructure, delivering re-
sources to residents and aiding
volunteers after Hurricane Ma-
land on the city’s behalf, in-
cluding 30 members of the fire
and police departments, to as-
sist with search-and-rescue
gest storm to hit Puerto Rico in
nearly a century, destroyed the
island’s electricity infrastruc-
ture and left many without
view from the island that his
team had set up a distribution
center inside the Roberto Cle-
mente Coliseum in San Juan to
Governor’s Trips
ria ravaged the island and left
most of its 3.4 million inhabit-
ants without basic necessities.
missions. Other workers are
helping manage recovery oper-
ations and set up a distribution
phone service. Workers and
volunteers have struggled to
get relief supplies from cargo
handle donations from the U.S.
Mr. Jackson said he has seen
progress: Stores were begin-
To Storm Zones Aid
Over the weekend, Mr. center in San Juan, according ships in San Juan’s port to peo-
Cuomo deployed a 77-person
team from the Port Authority
of New York and New Jersey to
to city officials.
Speaking about the recovery
efforts days after the hurricane
ple throughout the island.
Mr. Cuomo visited Puerto
Rico on Sept. 22 to see the
ning to open and the Coliseum
where he is working recently
got access to electricity. But
most people are still struggling.
Others and Himself
assist the island’s airport and slammed into the island, New devastation and meet with lo- “These folks are resilient,” BY MIKE VILENSKY of that population lives in New
ports, and 53 state police offi- York City Mayor Bill de Blasio cal leaders. New York has since he said. “We’ve got lines of vol- York City, where Mr. Cuomo
cers to help with security and noted that thousands of New sent more than 4,000 cans of unteers ready to do anything Gov. Andrew Cuomo is has his strongest base of elec-
rescue operations. Yorkers have a personal con- food, 25,000 bottles of water they’re told to do.” known to dash to the scene of toral support.
natural disasters in New York. In September, Mr. Cuomo
Now, he is taking that ap- toured the Caribbean islands of
proach out of state, with trips St. John and St. Thomas with
to the storm-ravaged U.S. Vir- Virgin Islands Gov. Kenneth
gin Islands and Puerto Rico Mapp. He also flew to Puerto
that could raise his national Rico to meet with Puerto Rico
profile ahead of the 2020 presi- Gov. Ricardo Rosselló.
dential election. At home, Mr. Cuomo has
“He’s following a standard long sought to project a similar
paradigm for governors with image of a politician on the
presidential aspirations,” said move. “He never misses an op-
Gerald Benjamin, a political his- portunity to don the wind-
torian at the State University of breaker,” said Alex Beauchamp,
New York at New Paltz. “You a New York climate activist.
try to establish a record worthy The behavior has sometimes
of presidential consideration, been criticized as self-serving
and then find places to become or disingenuous, particularly
a national spokesman.” because the governor’s office
Mr. Cuomo, a Democrat, was promotes his appearances dur-
the first governor to head to ing crises on social-media and
the Virgin Islands and Puerto at news conferences.
Rico after they were hit by hur- Jessica Proud, a New York
ricanes Irma and Maria. He has Republican strategist, said the
since launched a recovery fund governor was slower to appear
with celebrities such as Jenni- at crises when his response to
fer Lopez, deployed a state res- them already was under fire,
cue ship to Puerto Rico, and such as during a recent water-
deputized state troopers to as- contamination situation in up-
sist with the island’s recovery. state New York or a New York
Moreover, he has made re- City subway derailment over
marks on the crisis in Puerto the summer.
ALVIN BAEZ/REUTERS
Rico that segued into his Mr. Cuomo’s spokeswoman

broader approach to governing. responded: “New York will al-
“We can wish people our best ways…provide support to help
wishes, we remember them in our fellow citizens.”
our prayers, but…the job of It remains to be seen if the
A store destroyed by Hurricane Maria in Salinas, Puerto Rico. The storm was the strongest to hit the U.S. territory in almost a century. government is to act,” he said. governor’s trips to the storm-
Mr. Cuomo has said he plans ravaged islands play a role in a
to run for re-election in 2018. future campaign, but his allies
Emotions Run High in Chelsea Ahead of Trial Asked if the storm-recovery ef-
forts are part of an effort to
build a presidential platform,
said the moves could be helpful.
“It’s Andrew Cuomo’s gen-
eral operating principle that if
BY THOMAS MACMILLAN Seaside Park and Elizabeth, running again,” he said. blind and visually impaired, re- he told NBC: “I have my hands you do a good job, the next job
N.J. One of the Chelsea bombs Jane Schreibman, a 67-year- membered the explosion as “a full, and I have my dream job.” might follow,” said Hank Shei-
Life may have returned to exploded on Sept. 17, 2016, on old photographer who called huge, huge boom. Bigger than There are more than one nkopf, a Democratic strategist
normal in Chelsea, the neigh- West 23rd Street, injuring the police after spotting an anything I’ve heard before.” million people of Puerto Rican and former Cuomo campaign
borhood where a bomb ex- more than 30 people. unexploded bomb in Chelsea The bomb exploded in an alley descent in New York. And much adviser.
ploded a year ago, but some res- Mr. Rahimi, a naturalized on the night of the blast, said right next to the building.
idents will keep a close eye on U.S. citizen and Elizabeth resi- the experience didn’t change Ms. Carrico said that while
the federal trial of the alleged dent, was caught two days her life significantly. The main most of the tenants have
bomber as it begins this week. later in Linden, N.J., after a shaken off the experience, some
“It brings it all up again,” gunbattle with police. who were closest to the blast
said Eric Ord, the 45-year-old The bombs were made from
Ahmad Rahimi is are still dealing with anxiety.
DARREN MCGEE/OFFICE OF GOVERNOR ANDREW M. CUOMO
co-owner of the Townhouse pressure cookers filled with accused of a 2016 “We were traumatized and
Inn of Chelsea, which was se- explosives and shrapnel. The had a severe business impact,”
verely damaged in the blast. blast in Chelsea occurred at
bombing that hurt said Mr. Ord, the innkeeper.
“We’d be happy to see a guilty about 8:30 on a Saturday more than 30 people. The explosion shattered win-
verdict and a resolution.” night, shattering windows and dows in his 13-room hotel,
Defendant Ahmad Rahimi terrifying people. showering glass on guests as
has pleaded not guilty to eight One year later, the neigh- difference, she said, is that they lay in bed, he said. “For-
charges in Manhattan federal borhood has moved on, for the now she is famous among her tunately, no one in our build-
court, including using a most part, said Corey John- friends, who ask her to point ing was injured.”
weapon of mass destruction, son, who represents Chelsea out the spot where she noticed At the King David Gallery,
bombing a place of public use on the New York City Council. the suspicious device. owner David Peretz, 42, said the
and interstate transportation “The remarkable thing For some, though, effects of experience has made him more
of explosives. about New York generally and the bombing linger. Joyce Car- wary of unattended bags left in
Prosecutors say Mr. Rahimi this incident specifically is rico, 74, head of the tenants front of his store. He is hoping
planted bombs in Manhattan’s that 96 hours after the bomb- association at Selis Manor, an for a guilty verdict. “Thank God
Chelsea neighborhood and in ing happened, life was up and apartment building for the no one got killed,” he said. Gov. Andrew Cuomo, center, in San Juan, Puerto Rico, on Sept. 22.
“I feel very fortunate with First Republic –

they make banking an enjoyable process.”
S H A H I N G H A D I R , M . D.
Founding Partner, Southern California Reproductive Center
(855) 886-4824 | firstrepublic.com | New York Stock Exchange symbol: FRC

MEMBER FDIC AND EQUAL HOUSING LENDER
A12B | Monday, October 2, 2017 NY * *** THE WALL STREET JOURNAL.
GREATER NEW YORK
‘Interrupters’ Help
Reduce Violence
FROM TOP: ENID ALVAREZ FOR THE WALL STREET JOURNAL; MAGNUSON ARCHITECTURE AND PLANNING
In Neighborhoods
BY ZOLAN KANNO-YOUNGS to Prevent Gun Violence.
“This program is showing
They have prior criminal us that community members
records but now aim to re- are critical agents of peace,”
solve neighborhood conflicts he said.
before they turn vio- The results come as New
lent. They walk neighbor- York City has experienced an
hood streets on a daily basis overall decline in major fel-
and use their connections to ony crime.
resolve disputes before they The interrupters work in-
escalate, requiring the police. dependently but have often
These “violence interrupt- been cited by the New York
ers” and their tactics helped Police Department and
to drive down crime in East Mayor Bill de Blasio as con-
New York and the South tributors to the city’s crime
Bronx, two neighborhoods decline. This past summer,
analyzed in a John Jay Col- interrupters helped patrol
lege of Criminal Justice re- J’Ouvert, a Labor Day festival
port. in Brooklyn that long was
The city began implement- plagued by violence.
A proposed development includes rental apartments and up to 80,000 square feet of office and retail space in Spring Valley. ing 18 such programs around In the Bronx, participants
the city from the global non- of the program also monitor
Project Aims to Revitalize Village

profit Cure Violence in 2010, social media to resolve argu-
drawing funds from the U.S. ments between gang mem-
Department of Justice. East bers.
New York and the South
BY KEIKO MORRIS tion Corp. constructed two af-
fordable apartment buildings
Bronx recorded steeper de-
clines in shootings compared
‘This program...shows
Ariel “Eric” Jacobov has with ground-floor retail space with two neighborhoods that community
spent the past seven years as-
sembling small parcels of land
in a designated urban-renewal
area on North Main Street. To-
without the programs, the
college said.
members are critical
around the worn surroundings day the two four-story build- In Brooklyn’s East New agents of peace.’
of a suburban ings stand out among the York, 50% fewer people were
PROPERTY train station just older small buildings filled admitted to hospitals with
north of New with restaurants and bodegas. gunshot wounds from 2005 Andre T. Mitchell, who
York City. His The recession and its after- to 2016, according to the heads the nonprofit Man Up!
goal: to create a hopping down- math damped the pace of pri- state Department of Health. Inc. in East New York, said
town with vibrant streets, vate development, said Tom Flatbush, a Brooklyn he deploys interrupters to
apartments, shops and connec- McGrath, senior vice president neighborhood with similar address a range of conflicts,
tions to mass transit in the vil- and director of upstate revital- demographics and popula- whether it be a domestic is-
lage of Spring Valley. ization for the Community tion, saw a 5% decline in sue between family members
Mr. Jacobov’s blueprint for a Preservation Corp. “It would shooting injuries during the or a potential shooting.
mixed-use development bears have been different had the same period. “We have our ears close to
the familiar trademarks of economy not tanked,” he said. In the South Bronx, with the ground,” Mr. Mitchell
other projects developers have Rockland County’s popula- the Cure Violence program in said.
built in the past several years Train Expansion pand New York Penn Station tion increased about 3% be- place, there were 37% fewer In the neighborhoods with
along suburban rail lines in the so it could handle more trains. tween 2010 and 2015 to people shot from 2005 to interrupters, survey respon-
metropolitan area, aiming to Has Many Hurdles Efforts have been under 320,688, according to the U.S. 2016, according to the re- dents said they were less
capitalize on the idea of walk- way to secure funding for the Census Bureau, topping port. There were 29% fewer likely to use violence in hy-
able downtowns with conve- NJ Transit’s Pascack Valley first phase, but it remains un- nearby Westchester and Ber- people shot during the same pothetical “serious disputes,”
nient transportation options. line, which serves Spring Valley clear where New York, New gen counties with increases of period in East Harlem, which according to the report. In
One improvement that he in Rockland County, runs to Jersey and the federal govern- 2% and 2.3%, respectively. doesn’t have the program. those neighborhoods, for in-
says would be a boon for his Hoboken and Secaucus, where ment would find the money to With a previous career as a “People who have previous stance, people were 33% less
Rockland County project is a riders heading to Manhattan finance the Gateway project. commercial-lending broker, justice system involvement likely to resort to violence
direct train line and a shorter have to switch to the PATH “It’s a very cloudy picture Mr. Jacobov began piecing to- and have turned their lives during a serious dispute in
commute into New York City. train or another NJ Transit line. right now, and anybody that is gether land for the Spring Val- around to build their commu- 2016 compared with 2014.
That idea, however, has been A loop track connecting making a commercial bet on ley project by primarily buying nity…are important emissar- The neighborhoods with-
on the drawing board for years train lines such as the Pascack the loop and the addition of defaulted loans from lenders ies for violence prevention out the interrupters were
and faces an uncertain future, Valley service to tracks going platform and track space at and acquiring the deeds to the and conflict resolution,” said 12% less likely to use vio-
transit experts said. into New York City is part of [New York] Penn Station is re- properties at a discount. He Eric Cumberbatch, executive lence during the same pe-
“Rockland has been growing the later phase of the larger ally in a prayerful mode,” said said he owns about 70% of the director of the mayor’s Office riod.
at a fierce pace,” said Mr. Jaco- $30 billion regional Gateway Martin Robins, director emeri- proposed downtown Spring
bov, chief executive of Concord Project. tus of the Alan M. Voorhees Valley site, which falls in an
Capital New York. “It’s only fair That proposal would build a Transportation Center at Rut- urban-renewal area that al- Intervening Before Crime Escalates
for us to have a direct train to new Hudson River tunnel, re- gers University. lows for this sort of mixed-use In two New York City neighborhoods, enlisting locals to serve as
New York City.” pair the existing one and ex- —Keiko Morris development. That leaves a ‘violence interrupters’ helped to drive down gun crimes, according to
Mr. Jacobov’s $175 million de- few parcels belonging to pri- a new report.
velopment proposal doesn’t vate owners to be condemned
hinge upon securing a direct from about a mile from the vil- If completed, the develop- as part of the urban-renewal With the programs Without the programs
line, he said. Demand for hous- lage train station, he noted. ment would be a boost to the re- redevelopment process. East New York South Bronx Flatbush East Harlem
ing in the area continues to Mr. Jacobov’s development vitalization efforts in downtown The area Mr. Jacobov wants 8
grow, and he believes that the plan calls for 600 to 800 rental Spring Valley, a village of about to develop has been a dead
existing train service and access apartments and as much as 32,000 people roughly 37 miles zone, said Mr. Delhomme, who 6
to local buses at the develop- 80,000 square feet of office north of Midtown Manhattan. chairs the urban-renewal board.
ment site make his project at- and retail spread across six to Like other villages and small cit- The development would make 4
tractive. But a one-seat ride from seven buildings on 4.5 acres. ies, Spring Valley’s downtown improvements to the train sta-
Spring Valley to New York Penn Spring Valley Mayor Demeza retail suffered as competition tion, which is managed by 2
Station could mean a 50-minute Delhomme said he supports the from malls increased. Metro-North Railroad, and a vil-
commute, possibly reducing the plan, as does the village’s Ur- Just after the financial cri- lage park. “The project would 0
trip by nearly 30 minutes, he ban Renewal board, which cre- sis of 2008, an arm of the remove a dilapidated area and 2005 ’16 2005 ’16 2005 ’16 2005 ’16
said. Now, many area commuters ated the urban-renewal district nonprofit multifamily housing give us the rentals we desper- (Before) (After)
take direct buses to Manhattan where the project would rise. lender Community Preserva- ately need,” Mr. Delhomme said. Source: New York State Department of Health THE WALL STREET JOURNAL.
GREATER NEW YORK WATCH

STATEN ISLAND supporters. BASEBALL to the Phillies 11-0, finishing a
Mr. Grimm plans to challenge 70-92 season that began with
Grimm, Out of Prison, Rep. Dan Donovan, a Republican, Terry Collins Resigns great expectations but was
To Run for Congress who won the seat after Mr. As Manager of Mets quickly derailed by injuries.
Grimm resigned in 2015. “It’s one of those years you
Former Rep. Michael Grimm, Mr. Donovan has the backing Mets manager Terry Collins want to forget, and I will. To-
who pleaded guilty to tax fraud of the local and state Republican resigned Sunday after seven morrow,” he said, saying this
and went to prison, said Sunday parties and a $300,000 cam- seasons and said he would take season left a “sour taste.”
“La Reboule” is a traditional end of harvest celebration in
that he wants his old congres- paign war chest. a position in the team’s front The Mets were 551-583 over-
France’s Northern Rhône Valley where grape harvesters,
sional seat back. “We’re not really worried office. all under Mr. Collins, reaching
winemakers, and cellar staff get together at the end of
“Together we’ll go to Wash- about a challenge from a felon,” “It’s been a blast, but it’s time,” the World Series in 2015 and
a successful vintage to toast with great food, wine, & ington and have our president’s a Donovan campaign spokes- the 68-year-old Mr. Collins said. earning an NL wild-card spot in
revelry. Sommeliers Dustin Wilson & Thomas Pastuszak back,” Mr. Grimm, a Republican, woman said. He announced he was step- 2016.
are bringing this storied tradition along with the best told a group of about 100 —Associated Press ping down after the Mets lost —Associated Press
producers from the Northern Rhône to New York City on
November 17th and 18th via a weekend of fantastic wine
tastings, dinners & festivities while raising money for
No Kid Hungry, a charity Thomas & Dustin both support. New York Bridge Is Falling Down
NOVEMBER 17, 2017 NOVEMBER 18, 2017
JEAN-LOUIS CHAVE NORTHERN RHÔNE

HERMITAGE DINNER TASTING
LEGACY RECORDS, 180 MAIDEN LANE
HUDSON YARDS TIME: 1:00 PM – 4:00 PM
6:00 PM - 9:30 PM TICKET PRICE: $100
TICKET PRICE: $4,000
LA REBOULE:
SEATED DINNER
180 MAIDEN LANE
6:00 PM - 10:00 PM
TICKET PRICE: $600
BESS ADLER FOR THE WALL STREET JOURNAL
Guest Chef: Daniel Humm

and others
SPECIAL THANKS TO THE FOLLOWING SPONSORS:
Make it Nice VinePair

Wall Street Journal Wine & Spirits Magazine
For tickets and information, visit

RebouleDuRhone.com
Sponsor and weekend packages available.
UP IN SMOKE: The old Kosciuszko Bridge, which opened in 1939, was taken down Sunday in a controlled demolition. The Brooklyn-
Queens span is being replaced with two cable-stayed bridges. The first opened in April and the second is set to open by 2020.
LIFE&ARTS
BY RAY A. SMITH FASHION ers will buy the whole look includ-
The Kitchen Sink

ing the accessories. Some may say
no to the dress but yes to the bag.
AS THE FASHION industry Or both bags.
scrambles to find hit trends, some At Coach, the layering was
designers appear to be throwing about personalization, creative di-
everything at the wall in the hope rector Stuart Vevers said in an
Approach to Style
that something grabs consumers. email. Some of the layering was
Labels including Marc Jacobs, inspired by trans actress Hari Nef,
Coach, Prada, Marni and Gucci, “who at one of our parties, as the
whom many credit with sparking night went on, took the top layer
this trend, have been sending of her prairie dress off and carried
models down the runways in re- on partying in the slip.”
cent weeks wearing jackets over With women relying less on
jackets and skirts and dresses Designers pile on multiple bags, coats, skirts, pants; Will something stick? fashion magazines to dictate
over pants and carrying several trends to them, the magpie trend
bags and scarfs. Coco Chanel’s fa- can address women who take a
mous maxim—“Before you leave Marni’s collection had a “trea- thetic as “magpie opulence.” It closet, nerd chic, “Grey Gardens,” DIY approach to dressing.
the house, look in the mirror and sure hunt” theme, in which women was apparent at fashion weeks in Walt Disney cartoons, the botani- “It gives you multiple choices,”
take at least one thing off”— “scavenge into trunks full of ob- New York, London, Milan and cal and psychedelia. says Lizzy Bowring, catwalks di-
doesn’t apply to these Spring jects, finding items that belong to Paris, which ends Tuesday. Sometimes a trend takes getting rector at WGSN, who predicted
2018 collections. different individuals and carry dif- A lot of credit—or blame, de- used to. Women who swore by “magpie opulence” would be a
Runways, of course, often show- ferent stories,” according to the pending how you feel about the their skinny jeans, snug pencil trend at the shows. “There is a
case extreme styles and stores program for the show held during trend—can be placed on Gucci. skirts and fitted dresses and moto big audience for that, it doesn’t
eventually sell toned-down ver- Milan Fashion Week. Looks in- Creative director Alessandro Mi- jackets two years ago eventually just stop with Gucci.” The trend
sions. But the pile-on approach cluded 1950s-style bathing suits chele has turned the once-mori- took to the roomier and slouchy can be about expressing individu-
gives stores more options, increas- layered over a top and pant bund fashion house into one of looks being worn today. ality. “Every outfit you can pull
ing the chances that women will combo, as well as dresses worn fashion’s top-selling brands since From a sales perspective, layers apart and take one piece and that
see something they covet when over skirts. his January 2015 appointment of clothing, bags or jewelry in one is really relevant to the way that
the styles arrive on racks and Trend-forecasting firm WGSN with a feverishly rococo aesthetic ensemble mean more merchandis- we dress now. For me that is key,
shelves in a few months. refers to the eclectic, pile-on aes- that spans thrift stores, grandma’s ing opportunities. Some consum- individuality.”
Two C
ith o
A mod ats
A Skirt W Burber el at
A Dress ry
show in ’s recent
Marni’s
A model at Five B wears London
M ila n, where the A mode ags a
show in
easure la check g vintage
theme w as ‘tr Margiela t Maison ab
s two ’s s jacket ardine
hunt,’ carr ie Paris wie how in ov
hooded er a
ea ring ld
bags w hi le w bags, inc s five coat.
er size d lu ding a
an ov backpac
k an
dress over bag on h d small
irt. er back.
a long silk sk
Two Bags
A model in Milan
at Gucci carries
Gloves With two bags, while
A Watch wearing a jacket
A model at Marc with a skirt and
Jacobs show in New slip. Gucci is
York carries two bags, credited with
a sport fanny helping spark
pack and a sport this trend.
sling, while loading
up on accessories
including a fringe
boa, turban, brooch,
gloves, necklace,
and a watch.
GETTY IMAGES (5)
FILM
EARLY PRAISE FOR A TOUGH FILM ON CHILDHOOD

about the poor have been called
BY RICHARD TURNER
exploitative and sentimentalized,
too gritty and not gritty enough.
SEAN BAKER makes movies “Beasts of the Southern Wild,”
about poor people, a noble effort about an imagined backwater com-
but sometimes a fraught one. Es- munity in Louisiana, was widely
pecially these days, filmmakers praised and Oscar-nominated. But
like him must pick their way one critic, Thomas Hackett in the
through a political and cultural New Republic, called it “patroniz-
minefield—and set off the occa- ing and borderline racist,” adding:
sional explosion. “It sentimentalizes poverty and
“I get attacked all the time,” he glosses over neglect.”
says. That was nearly five years ago.
Mr. Baker isn’t complaining. His The climate is more highly
latest independent film, “The Flor- charged today, amid raging debate
ida Project,” about “motel kids” on about race, class, inequality, free
the edge of homelessness in the speech and cultural elites.
shadow of Walt Disney World, “We’re living in an age of the
won acclaim at the recent Cannes think piece,” Mr. Baker says.
A24
and Toronto film festivals. Early “Most filmmakers, if not all, come
reviews have praised its warmth, ‘The Florida Project’ director Sean Baker says he worked not to romanticize the motel manager played by Willem from a place of privilege, if only
realism and lack of stridency. It Dafoe. The movie is about ‘motel kids’ on the edge of homelessness in Central Florida. because of the expense. Now
follows a flawed young mom, Hal- you’re being thought about in a
ley, her daughter, Moonee, and her they can see the fireworks show discovered at a Target store. Mr. was 6 when the film was shot. The different way. It’s about who can
wild-child friends, scraping by in every night in the distance. Baker found Bria Vinaite, who movie is scripted but also impro- tell these stories, who has owner-
$38-a-night single rooms along The new film mixes professional plays Halley, on her weed-promot- vised and filmed in documentary- ship of certain topics.”
gaudy, rundown Route 192 in Kis- actors, notably Willem Dafoe, with ing, tattoo-festooned Instagram ac- like style. It opens Oct. 6. Mr. Baker, 46, was born in
simmee, Fla. The motel is close first-timers, like Valeria Cotto who count. Brooklynn Prince, who plays Along with this attention Summit, N.J., the son of a trade-
enough to the Magic Kingdom that plays Jancey, one of Moonee’s pals, Moonee, had a short resume: She comes scrutiny. Recent films Please see FLORIDA page A14
LIFE & ARTS
JASON HENRY FOR THE WALL STREET JOURNAL

WHAT’S YOUR WORKOUT? | By Jen Murphy
Yoga Too Easy? Try It on Water

An Oakland food executive stays centered with morning yoga sessions on her paddleboard on San Francisco Bay
WHILE LISA CURTIS was getting team experience and a Lisa Curtis performs tree
her food startup off the ground in great confidence- pose, above, and upward The Scaredy Cat’s
2013, she learned two important builder,” she says. dog, left, on her
lessons: She needed to find bal- paddleboard.
Guide to SUP Yoga
ance and she couldn’t be scared to The Workout If a backbend on land sounds
take risks. Stand-up paddleboard- Ms. Curtis likes to says. In the morning, intimidating, then getting upside
ing seemed like the perfect work- stand-up paddleboard in she makes oatmeal down on a stand-up paddleboard
out to reinforce both. the morning, usually topped with a variety of over undulating waves probably
“Paddling is like a metaphor for around 8 a.m., when the toppings such as mor- sounds bonkers.
life,” says Ms. Curtis, who is 29 water is calm and there inga, goji berries, chia But the challenges you’ll expe-
years old. “It teaches you to find is less boat traffic. She seeds and almond or rience on the water will actually
your center even amidst the starts with 15 to 20 sunflower butter. Salads increase your strength, stability
waves. And the worst that happens minutes of paddling, are her go-to lunch on and focus in your mat-based
is you fall in the water. It’s good to which she says calms the road. She likes to practice, says Shannon Paige, a
do something that keeps you a bit her mind and works her mix salads with bell SUP yoga instructor and co-
on the edge.” core. She then goes pepper, tofu and nuts. owner of Earth Yoga Studio in
Ms. Curtis’s company, Kuli Kuli, through a few yoga se- Ms. Curtis and her hus- Boulder, Colo.
makes bars, powders and teas quences. Ms. Curtis occasionally paddles band stock up on weekly dinner “Lower postures are steadier
made from moringa, a nutrient- “When you do yoga on a paddle- with her husband, Trenton Arthur, ingredients each Sunday at the than taller postures,” Ms. Paige
dense plant she discovered during board, it’s less about perfect form who kayaks. “I like the core and farmers market. Vegetable stir says. “Practice seated poses for
her time working in Niger for the and more about feeling what is leg engagement of SUP,” she says. fries are a staple. “I’m vegetar- flexibility and get used to the
Peace Corps. As Ms. Curtis went right for my body,” she says. “I’ve “Plus, you can see more standing ian,” she says. “So my husband movement of the board beneath
through rounds of fundraising, she practiced yoga since high school, on a paddleboard versus sitting. might add meat to his batch, or you before you take the same
found her time for workouts and postures I thought I’d mas- I’m always spotting cool birdlife he’ll cook something like pork shapes upward to your feet.” The
shrinking. tered, like warrior one and two, and sometimes even seals.” chops on the side.” more points of contact you have
Rather than choose between feel so difficult on the water.” She still tries to fit in yoga ses- on the board, the less likely you
yoga and stand-up paddleboarding, She says mastering tree pose, sions on the mat. She has a yoga The Gear & Cost are to fall, she says. “A narrower
she combined her two fitness pas- where you balance on one leg space in her home and tries to “I’m a big Patagonia fan,” she stance will be more challenging,
sions. Ms. Curtis lives a 10-minute while the opposite foot rests on meditate or practice yoga for at says. “Their gear is awesome and so start with wider feet to build
walk from the San Francisco Bay the standing calf or inner thigh, is least 10 minutes a day, or she they have a great company confidence.”
near Oakland’s Jack London a new accomplishment. “If you streams classes from the website ethos.” She likes Gaiam yoga Ms. Paige says if you feel
Square. “It was the perfect break think balancing on one foot on the Yoga With Adriene. mats, but says when it comes to wobbly, set a point for your eyes
from the stress of getting a ground is challenging, try it on the Her new obsession is stand-up apparel, she’d rather buy spandex to focus on. “A steady gaze is es-
startup off of the ground, and way water,” she says. “I’ve finally got- paddleboarding over white-water at Costco than spend $60 on a sential for balance,” she says. The
more exciting than running,” she ten used to kayakers snapping rapids. She first tried it on Idaho’s fancy yoga brand. She bought her worst thing that can happen is
says. “Trying to do downward-fac- photos of me.” Salmon River in 2014 and now aims Jimmy Styks stand-up paddle- losing your balance and ending
ing dog or side plank on a board Ms. Curtis says practicing in the to do a white-water SUP trip three board at Costco for $200. Other up in the water. “Take the fear
instantly erases any work water requires her to be much to four times a year. “The adrena- than earphones, she prefers her out of the unknown and practice
thoughts.” more aware of her alignment and line rush is incomparable,” she says. workouts gadget-free. “People get jumping off and climbing back on
Now that her company has body position. “You’re always ask- so caught up in tracking steps and the board. Once you do, the fear
grown to 10 people, she uses standing yourself, ‘If I shift my weight, The Diet calories,” she says. “I like my of falling will no longer distract
up paddleboarding, also known as will it rock the board too much and “I travel a lot, so it helps to be a workouts to be more meditative your focus.”
SUP, for team-building. “It’s a fun cause me to fall into the water?’ ” creature of habit,” Ms. Curtis and less gamified.”
FLORIDA sional distance. “Willem knew

never to get melodramatic or
cheesy,” says the director.
Humor is essential, but de-
Continued from page A13 mands a careful hand. “That’s the
mark lawyer and a former pre- dangerous part,” he says. “The
school teacher. He went to film minute you’re laughing, some peo-
school at New York University and ple will say you’re laughing at peo-
discusses Italian neorealism as ple.” He wants audiences to laugh
easily as crystal meth. His earlier at human behavior, not the lives of
movies have looked at transgen- individuals.
der prostitutes in Hollywood He thinks many recent movies
(“Tangerine”), porn actresses in about people living on the margins
the San Fernando Valley (“Star- rely too much on “shock and awe”
let”) and undocumented immi- at the expense of nuance and hu-
grants and street hustlers in New mor. (He won’t name them.)
York (“The Prince of Broadway” An innocent, kid’s-eye view
and “Take Out”). helps. Mr. Baker is a huge fan of
One review of “The Florida Proj- “The Little Rascals.” His Twitter
ect” by Cassie da Costa in Film handle is @Lilfilm. When the pac-
Comment complains that Mr. Baker, ing of “The Florida Project” slows,
as a college-educated white male, is it is partly to convey the monotony
A24
wary of assuming too much about of children when “summer feels

his characters and “cannot fully ‘The Florida Project’ stars unknown child actors, from left, Christopher Rivera, Brooklynn Prince and Valeria Cotto. like forever.” One minute they’re
fathom their inner lives.” languidly kicking the ground, the
Mr. Baker says he understands Her own family appears to be out Films about overlooked commu- ify his tenants and collect their next they’re blasting into the next
such criticism and has a few rules of the picture, and it isn’t spelled nities often use a kind of guide to bills so he doesn’t have to evict delinquent adventure.
for trying to avoid it. Indeed, he out when she had Moonee, but one help the audience react to the set- them, is a case in point. Mr. They encouraged the children
doesn’t want to assume too much can deduce that she was 15. “Do ting—a journalist or some other Baker and his writing partner to run free and be spontaneous.
about his characters, and he con- the math,” Mr. Baker says. kind of interloping character. Chris Bergoch met several such When Bobby kicks them out of
sciously keeps some details sketchy. “I’m from outside most of these Fairly or unfairly, movies from managers from the strip. One in the lobby for spilling ice cream,
The reasons for Halley’s trou- worlds I’m focusing on, and I feel “Dances With Wolves” to “The particular helped Mr. Dafoe em- he dryly says, “Thank you very
bled parenting aren’t spelled out. there’s an ethical approach to Help” have taken heat for featur- phasize that Bobby is no saint, much” as they race away. “You’re
It isn’t clear why she is unemploy- making these kinds of films. My ing such “white saviors.” Mr. Baker just a blue-collar guy with a job not welcome!” shouts Moonee, a
able at the local theme parks, al- biggest fear is that if you paint avoids them. to do. If he’s a father figure to laugh line which opens the film’s
though the piercing and the re- your characters in, you could be Mr. Dafoe’s long-suffering mo- the children sometimes, he’s a re- trailer and was improvised by
splendent tattoos may be a factor. doing them wrong.” tel manager Bobby, trying to pac- luctant one who keeps a profes- Ms. Prince.
LIFE & ARTS

ART REVIEW
Cosmopolitan
Korea
Drawn from some 600 holdings, the exhibition
reveals a rich global tradition
nality. There are, for example,
BY LEE LAWRENCE
none of the collection’s Chinese-
style or Buddhist paintings (the
Brooklyn, N.Y. latter will feature in a future gal-
AFTER FOUR YEARS of renova- lery on Buddhism). What we see
tions, the Brooklyn Museum is instead are the portrait of an
gradually reintroducing its Asian 18th-century official wearing dis-
and Islamic art collections to the tinctive Korean garb and an 1811
public, starting with “The Arts of depiction of a spirit shrine that
Korea.” It draws on some 600 Ko- speaks of the predominance of
rean holdings, considered one of Confucianism during the Joseon
the largest and most varied mu- dynasty (1392-1910).
seum collections of its kind in the Ancestor worship was wide-
U.S. And it is finally getting its spread in Asia, and Koreans who
due. Thanks to grants from the could not afford to build a shrine
National Museum of Korea (part used small paintings as stand-ins,
of a longstanding effort by South with a blank space in the center
Korea’s government to showcase where family members affixed
the country’s cultural heritage), the name of the ancestor they
the museum has more than tri- were honoring. The work here,
pled the size of its Korean instal- however, is 5 ½ by 4 ½ feet and
lation and assigned it a promi- bears a permanent dedication to
nent location: at the top of an the king and queen, leading
open staircase with glass risers scholars to believe it hung in a
that connects the Great Hall off government office—one of many
the main entrance to what will be, ways rulers encouraged good
once completed, the new suite of Confucian behavior.
Asian galleries. In a similar vein, a lavishly em-
Joan Cummins and Susan L. Be- broidered bridal robe tells of
ningson, the museum’s senior and 19th-century women passing
assistant curators of Asian art, down the ceremonial garment,
have used the boost in real estate each time making repairs and
to great effect. With about 80 covering the sleeves with clean
works, judiciously selected and paper. It is one of the objects on
thoughtfully displayed, they bring display acquired by Stewart Culin,
out distinctive aspects of the col- Brooklyn’s first curator of Asian
lection and Korean art generally. art. An ethnologist with a keen
While the adjoining galleries appreciation for what objects re- border on messy, illustrating the ‘Spirit Shrine,’ (1811), above; installation view of ‘The Arts of Korea,’ below; jar
are still being reinstalled, we have veal about culture, he established inability to produce crisp lines with dragon decoration (mid-17th century), bottom
to walk to the opposite end to the institution’s Asian department with a watery clay or slip. Potters
find the start of the chronological in 1903, traveled to Korea in 1913, had already learned from Chinese
sequence. Many of the fifth- and and created the first installation counterparts that, when they in-
sixth-century works establish that of Korean works in 1916. cised a design, the glaze pooled,
the Korean peninsula was not iso- A century later, his successors creating the subtle differences in
lated. Thus, reliefs adorning a highlight Korea’s distinctiveness by shade we see in a nearby gourd-
bronze mirror emulate Chinese giving ceramics pride of place. One shaped ewer. So, under the patron-
models; the makers of gold ear- display, for example, traces the in- age of the Goryeo dynasty
rings used a granulation tech- genuity of 12th-century (918-1392), they experimented and
nique that traveled from the Med- potters. We start with hit upon a solution: Fill incised de-
iterranean along the Silk Road. the problem: The cloud signs with white or black clay,
But most of the inaugural display motifs on one celadon wipe off the excess, buff the sur-
primarily stresses Korean origi- vase are so fluid they face, then cover it with transparent
celadon glaze. As a grouping of
Goryeo ceramics shows, the range
Ewer in the of designs exploded.
shape of a lotus As tastes changed, so did the
bud from the techniques. We are treated to,
first half of the among others, 15th- and
12th century 16th-century buncheong
ceramics with floral
motifs made by
applying a slip
then scratching
it off in places luminosity of its cela-
(a technique don glaze, the white-
called sgraffito); dot highlighting of
BROOKLYN MUSEUM (3); INSTALLATION: JONATHAN DORADO
the freewheeling floral motifs, the tor-

drawing of a sion in the bamboo-
dragon on a 17th- like handle, the white
century pot; a late porcelain cocoon and
18th-century or early newly hatched butter-
19th-century example of fly. Making the point
the beloved, off-kilter that Korean creativity
white moon-jar; and a num- lives on, contempo-
ber of blue-and-white porce- rary works bookend
lains that borrow Chinese the installation, and
motifs but render them with a we see this master-
lighter, airier touch. (To get a piece against the
sense of this, compare these backdrop of “Ecriture
with the porcelains in the exhi- No. 000308” (2000),
bition at the bottom of the stair- an abstract painting
case, “Infinite Blue.”) in charcoal gray by
Finally, pause at the entrance Park Seo-Bo. The interplay be-
to the gallery to study one of the tween and within them brings Ms. Lawrence writes about Asian
collection’s prize possessions: an out the dance of restraint and and Islamic art for the Journal.
exquisite 10-inch-tall ewer from freedom, realism and abstraction
the first half of the 12th cen- that permeates this elegant pre- The Arts of Korea
tury—the lid’s detailed lotus, the sentation of Korean art. Brooklyn Museum
STARTING TODAY
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A16 | Monday, October 2, 2017 * *** THE WALL STREET JOURNAL.
SPORTS
FOOTBALL | By Jason Gay
Did You Watch the NFL?

Did you watch the
NFL—or did you skip
it?
FROM TOP: BRUCE KLUCKHOHN/ASSOCIATED PRESS; JOHN BAZEMORE/ASSOCIATED PRESS

If you skipped it, for
whatever reason—an-
ger, conscience, bore-
dom or because you’re a New York
Daniel Giants fan, and simply can’t take it
Berger anymore—please tell me you had a
celebrates wondrous Sunday.
on Sunday. Tell me you realized how sweet
and productive the human exis-
tence can be without pro football.
GOLF Tell me you carved a walking stick,
and took your loved ones on a
THE U.S. brisk hike in the autumn air. Tell

me you read all of “Moby-Dick.”
Tell me your lawn is mowed, the
ROLLS TO
kitchen is renovated, and you built
that IKEA bookshelf without weep-
ing into the instruction manual.
CUP WIN
Maybe you didn’t do any of
that. Maybe you watched the…golf.
Or fell asleep watching golf.
Please don’t tell me you skipped
the NFL and just ate sour cream
BY BRIAN COSTA and onion potato chips on the
couch. (Not that there’s anything
wrong with eating sour cream and
AN AFTERNOON formality at onion potato chips on the couch.)
Even with the protest
Liberty National Golf Club ended in I watched the football. A lot of volume turned down—
the only way it conceivably could the football. It may have been a
Sunday, with the U.S. winning the mistake. Not because of anything
the whole episode still
Presidents Cup for the seventh political, but because I accidentally feels surreal.
time in a row. President Donald watched some of the Browns-Ben-
Trump attended and saw the Amer- gals game. Watching the 0-4
icans rout the international-except- Browns is like watching a golden
Europe team, 19 to 11. retriever try to make Thanksgiving It was stunning to watch Trump
The match-play event, which the dinner. Enthusiastic, yes—but not zero in on the protests and con-
U.S. has won 10 of 12 times since it very successful. front owners who have been his
began in 1994, was so non-competi- So here we are, friends, almost political allies. It’s cuckoo to see
tive that the Americans nearly done with NFL Week IV, or Trump how quick we are to forget—or,
clinched it on Saturday. Only a late vs. NFL Week II. I think we can worse, ignore—the history of pro-
point by the international team Sat- agree this Sunday was more sub- test across sports, and airbrush
urday made Sunday more than a dued. As of early evening, there the anger which greeted activists
mere accounting exercise, and it had been a bit of anthem kneeling, we now hail as courageous. Con-
was barely more than that. a bit of pre-anthem kneeling, some text is for wimps, I guess; shout-
With 15 1/2 points required to raised fists, and a bunch of arm- ing’s the currency that matters.
win the four-day event, the U.S. be- locking for “unity”—or whatever Similarly, it was odd—but pre-
gan Sunday ahead 14 1/2 to 3 1/2. vague message that is supposed to dictable—to see Kaepernick’s pro-
Daniel Berger secured the clinching be. But it was not the red siren test about racial inequality seized
point for the U.S. when he won his blast of last week, when the presi- by owners and turned into some-
match against Si Woo Kim of dent of the United States turned Top photo, Vikings players link arms before a game against the Lions on thing corporate and amorphous,
South Korea, ahead by two with his wrath at the small protests Sunday. Bottom photo, some Bills players kneel during the national anthem. stripped of its clarity and edges.
one hole to play. that had been happening for more Maybe that’s what life is in
To some extent, the outcome re- than a year during the “Star-Span- Bowl halftime show if its sponsors later, he tweeted out a vibrant an- 2017. One day, you’re marching in
flected the state of American golf, gled Banner” at NFL games. would let them get away with it. them sung at a hockey game, per- the street; the next day you’re
which has been boosted by the in- Does this mean the controversy Fans, meanwhile, are taking haps as a hopeful visual aid. watching Kendall Jenner hand a
flux of dynamic young talent. The is over? Of course not. Are there sides. We’ve heard from people On Sunday, he went to watch Pepsi to a police officer.
last three majors of 2017 were won unresolved questions? Lots. Does who find the protests disrespectful the…golf. Despite it all, there was foot-
by Americans between the ages of the NFL have a clear plan moving and now say they don’t want any- Even with the volume turned ball. Right: football. If you didn’t
24 and 27. The U.S. also won the forward? Errrrr… thing to do with the NFL. We’ve down—and who knows if Trump watch, do you want to know what
Ryder Cup, the biennial competition This is going to take a while to also heard from fans who are boy- will start going at the protesters happened? Spoiler: the Patriots
against Europe, in 2016 for only the settle, if it ever does. The league is cotting because they believe origi- who kept at it this week—the lost to the Panthers and the 3-1
second time in this century. It will trying to figure out how to balance nal protester Colin Kaepernick has whole episode still feels surreal. In Bills now lead the AFC East. The
likely enter next year’s Ryder Cup, to some players’s legitimate concerns been blackballed from the league. less than a week, a president used Falcons fell, too. Deshaun Watson
be held near Paris, as the favorite. about social justice—and their de- Then there are those who want a profanity to describe an NFL an- might be the real deal for the Tex-
But the lopsided nature of the sire to use their pre-game plat- to just watch the RedZone channel, them protester, disinvited Steph ans. The Saints shut out the Dol-
U.S. win Sunday also reflected the form to make a statement calling see their fantasy team combust, Curry from the White House, and phins. (After six points over the
poor and listless play of the inter- attention to it—against a rage that and drink a beer. watched as Cowboys owner and last two weekends with Jay Cutler,
national team. The Presidents Cup blasted open amid Trump’s sports As for President Trump, he will pal Jerry Jones took a pre-anthem shouldn’t the Fish give Kaepernick
has long struggled to find 12 non- radio-style Twitter outburst. almost surely declare victory here, knee (it’s now a new ritual; Jerry a call?) The Rams are 3-1 after
Europeans to beat the 12 best It’s a tricky needle to thread, interpreting the smaller protests probably wishes he could get a stopping Jerry’s Cowboys. If you
Americans, which is just one reason and historically, the NFL isn’t good as evidence of his might. Currently royalty on it.) Sports Illustrated set fire to your Jared Goff jersey,
it lacks the verve of the Ryder Cup. at threading tricky needles. Pro amid another uproar concerning photoshopped Curry locking arms you may be feeling some regret.
But that was made even more diffi- football is a conservative business, his response to hurricane-ravaged with Roger Goodell on a cover that Other than the fact that the Jets
cult this year because some of the emphasis on the business, and Puerto Rico, Trump wasn’t as didn’t include Kaepernick. “That are riding a two-game winning
most accomplished international turning into a cultural hot button locked in on the NFL. On Saturday was terrible,” Curry said, bluntly. streak, I can report it still looks
players, notably Jason Day and is ownership’s nightmare. This is a he tweeted it was “very impor- That was terrible. But we’re so like the football we know and
Adam Scott of Australia, were com- league that would probably hire tant” for players to stand during accustomed to the bizarre, the bi- (some Americans still) love.
ing off middling seasons. Seals and Crofts to play the Super the anthem. A couple of hours zarre doesn’t feel bizarre anymore. We’ll see if it stays that way.
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. 33 Outburst of
d t
Edmonton <0 1 2 3 4 5 6 7 8 9 10 11 12 13 6 Evil count in laughter
50s Lemony Snicket
V
Vancouver 50s
0s 14 15 16 35 Sow’s mate
books
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60s 17 18 19 7 Bruce of “The
30s p
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ttl
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60s Hateful Eight”
P d
Portland 30s 20 21 the parachute
l
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Ottawa
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40s Billings A g t
Augusta 22 23 24 25 26 meditation
Boise 50s 38 David’s weapon
pls //St. Pa
Mpls./St. P
Paul T t
Toronto A banyy
Albany t
Boston
27 28 29 30 31 9 Musical mix of
50s rtford
Hartford 60s two songs 39 Nonhuman
30s Pierre ll Milwaukee
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Sioux k t
Detroit Buffalol
40s ew Y
New Yorkk 70s 32 33 34 member of the
Reno Ch
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Chicago g Cleveland
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80s
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Chh y
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Pittsburgh
g
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Philadelphia 80s 35 36 37 38 Ethiopians and
Sacramento p g
Springfield d p
Indianapolis 42 Acropolis
Denver h
Omaha
hington
hi gton D.C.
Washington DC 90s Sudanese
an Francisco
San i Colorad
C l d
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p g
Springs Topeka
k 39 40 11 Card with the
City h
Richmond d 100+
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LLou
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Wichita LLouisville
Lou ill 60s Raleigh l igh
h 41 42 43 44 45 46 47 most pips 43 Taken in
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Charlotte 12 56-Down, to 45 Humiliating
Santaa FFe Memphis phi 80s 48 49 50 51
90s Oklahoma City C b
Columbia Fernando failure
San Diego Albuquerque
Alb q q Atl t
Atlanta Warm Rain
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h 52 53 54 13 Scathing review 46 Deal with, as a
Ft. Worth D ll
Dallas J k
Jackson
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Tucson Cold T-storms 19 They sometimes clogged drain
90s bil
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30s Austin
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90s Houston Stationary Snow
applications
40s Neweww Orleans Ta p
Tampa l d
Orlando 59 60 61 21 Quick-cooking
80s an Antonio
San A t i
noodles 49 Sandwich
A h g
Anchorage Showers Flurries 62 63 64
Honolulu 90s shops
50s Miami 24 Young red
70s
Muppet 51 Assertion
Ice
MAKING THE BED | By Theresa Schmidt 25 Like rush-hour 53 London art
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today Tomorrow
Hi Lo W Hi Lo W
Across 31 “Accio!” and 55 Kilauea flow traffic, ironically museum
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Does well on a “Lumos!” in Harry 58 Piedmont wine 26 Chiding sound 54 Simple toy train
Omaha 84 68 pc 75 54 t Frankfurt 64 50 c 62 44 sh Potter’s world
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 83 73 pc 85 73 s Geneva 63 55 pc 64 46 pc hole region 29 Stairway unit layout
Today Tomorrow Philadelphia 75 55 s 75 54 s Havana 89 73 t 87 73 pc 32 Trusted adviser 55 Target of the
City Hi Lo W Hi Lo W
5 Soul mate? 59 Garnish for a 30 Lugged
Phoenix 92 68 s 96 68 s Hong Kong 91 83 t 92 80 t 34 In a frenzy feds
Anchorage 53 46 r 52 46 r Pittsburgh 74 49 s 77 51 s Istanbul 68 58 pc 68 58 pc 9 Got together Gibson 32 She played Brigid
Atlanta 77 63 s 79 61 s Portland, Maine 68 45 s 67 50 s Jakarta 89 76 t 90 76 t 14 Suit to ___ 35 Winter 60 Slanted type: O’Shaughnessy 56 Count start
Austin 89 72 pc 86 73 t Portland, Ore. 65 44 pc 71 45 s Jerusalem 84 64 s 78 59 s wonderland Abbr. in “The Maltese 57 Whopper, for
Baltimore 74 50 s 75 51 s Sacramento 78 50 s 82 51 s Johannesburg 71 53 t 77 56 s 15 Butter feature
Boise 61 37 pc 61 39 pc St. Louis 84 66 s 86 67 s London 63 49 r 61 46 s alternative 61 Desktop picture Falcon” example
Boston 66 51 s 66 52 s Salt Lake City 53 37 pc 60 42 pc Madrid 85 58 pc 85 59 s 39 Unacceptable
16 Rock concert 62 Saloon choices Previous Puzzle’s Solution
Burlington 69 47 s 73 53 s San Francisco 73 55 s 77 57 s Manila 91 78 t 89 78 t 40 Lisa Simpson
Charlotte 75 53 s 78 54 s Santa Fe 75 44 s 75 50 s Melbourne 65 45 pc 74 50 pc venue 63 Hawk P E N A P E E R S A B E L
Chicago 82 64 pc 83 68 s Seattle 63 47 pc 67 47 s Mexico City 73 56 pc 71 58 pc
wears them A L A S A L L A Y L I R A
17 Carpet type 64 Does some B O B H O S K I N S I S N T
Cleveland 80 54 s 83 60 s Sioux Falls 66 56 t 65 43 c Milan 68 55 pc 69 55 sh 41 Gut courses
Dallas 91 73 pc 86 72 t Wash., D.C. 76 55 s 76 55 s Moscow 45 36 c 48 36 c 18 Rudely disturbs, janitorial work L I B Y A C T S Q U E
44 Number U S E K A T E H E P B U R N
Denver 58 37 pc 56 45 c Mumbai 91 78 pc 92 79 pc perhaps Down M E D S G Y M MA R I S T
between zwei
Detroit
Honolulu
75 54 s
87 75 pc 88 76 pc
80 64 s
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67 50 c
93 72 t
63 44 s
82 68 t 20 Burglars may and vier 1 Mathematician G
T R
R E
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G O R Y
R A C
P E C K
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S I R E D S I N I S E
Houston 88 76 pc 85 73 r Today Tomorrow Riyadh 102 69 s 101 71 s escape under it 45 Cat coat Blaise C L A WA T T O P S O F A
Indianapolis 80 59 s 83 63 s City Hi Lo W Hi Lo W Rome 72 57 pc 74 58 pc 22 Unconcerned 48 Picked up the 2 Not out R O Y S C H E I D E R H U M
Kansas City 84 68 pc 81 65 t Amsterdam 62 54 r 60 52 r San Juan 90 80 sh 89 79 pc A V A T E L U N I T E
Las Vegas 78 57 s 81 61 s Athens 73 61 pc 74 59 s Seoul 81 57 pc 74 54 c with ethics dinner tab 3 Acknowledge W E R E J AM E S MA S O N
L I E N O T E R I S E N D
Little Rock 82 68 pc 85 68 c Baghdad 96 69 s 98 71 s Shanghai 80 68 r 75 66 c 23 Most 50 Los Angeles again S T A G B E G A N H E S S
Los Angeles 76 63 pc 75 58 pc Bangkok 89 74 t 85 76 t Singapore 86 75 c 86 77 t embittered
Miami 86 79 t 86 77 t Beijing 62 44 r 68 47 pc Sydney 75 61 pc 75 61 pc neighborhood 4 “Like a Rock” The contest answer is ARGO. Each of the
Milwaukee 78 63 pc 79 65 s Berlin 60 51 r 59 49 r Taipei 96 80 pc 93 80 pc 27 “Ben-Hur” writer near Bel Air rocker characters in these films rode on a famous vessel:
Minneapolis 72 67 t 74 48 sh Brussels 63 49 r 60 47 sh Tokyo 77 69 pc 78 63 sh Wallace Smee was on the Jolly Roger, Rose Sayer on the
52 Window 5 Black songbird African Queen, Towers on the Sawfish, Chief Brody
Nashville 80 62 s 85 59 s Buenos Aires 65 50 c 69 54 c Toronto 69 50 pc 76 59 pc
New Orleans 84 76 r 86 74 t Dubai 101 86 s 99 83 s Vancouver 62 44 s 63 45 s 28 Fog’s kin makeup named for its call on the Orca and Captain Nemo on the Nautilus.
New York City 72 56 s 72 56 s Dublin 59 45 pc 56 45 pc Warsaw 62 49 pc 58 47 r The first letters of these five vessels spell JASON,
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
Oklahoma City 84 68 pc 80 66 t Edinburgh 58 47 sh 56 47 pc Zurich 61 55 pc 60 42 r who sailed on the Argo.

OPINION
FEMA’s Foul-Up in Puerto Rico BOOKSHELF | By Daniel Akst
Hurricane Ka-
trina taught
the Federal
The only thing more cer-
tain than Maria’s devastation
has been the rush to politicize
high with containers waiting
to be hitched up to cabs and
their contents delivered to su-
electricity monopoly—pres-
ents special challenges.
Yet this was common
Life and Work,
Emergency
Management
Agency some
it. As video of waist-deep wa-
ter, washed out highways,
splintered roofs, and uprooted
permarkets, restaurants, home-
building supply stores and
medical centers. In other
knowledge before Maria
landed. So too was the high
probability that cellphone ser-
Codified at Last
AMERICAS harsh lessons trees scattered across the is- words, much of the merchan- vice would be extremely lim-
By Mary
in 2005. FEMA
used what it
land hit American living
rooms, Donald Trump’s adver-
dise needed in an islandwide
triage is already on Puerto Ri-
ited in the wake of the storm.
Nevertheless FEMA was
Principles
Anastasia
learned to saries and their media cheer- can docks. caught off guard. By Ray Dalio
O’Grady
prepare and leaders painted the president What the island does not The emergency plan cen- (Simon & Schuster, 567 pages, $30)
N
respond bet- a heartless Anglo snob. yet have but will have to im- tered on the use of diesel gen-
ter when Harvey and Irma hit Yet the failures in Puerto port in the months and years erators to replace lost electric- obody can call Ray Dalio unprincipled. In fact, the
the U.S. mainland earlier this Rico have not been due to a ahead are billions of dollars in ity for hospitals and to pump founder of Bridgewater Associates, who built it from
year. Now Maria has taken lack of federal attention. materials for rebuilding drinking water. But a week af- scratch into the world’s largest hedge fund, may be
the bureaucrats back to Rather the local FEMA team ter the storm 44% of the is- just as well known for creating a somewhat controversial
school in Puerto Rico, and failed to execute fundamental land was still without agua set of principles aimed at systematizing the firm’s decision
they’re not getting passing aspects of emergency opera- The emergency potable and public-health ser- making and codifying its values. In 2010, he posted them
grades. tions. Whether that’s because vices were deteriorating. online, leading to more than three million downloads.
Ahead of the Category 4 it was overwhelmed by the plan depended on Amid the chaos, Alejandro Mr. Dalio has now brought forth a sizable book titled
storm that hit with 155 mile- widespread devastation or be- generators but diesel de la Campa, the local head of “Principles,” in which he has expanded his precepts and
an-hour winds on Sept. 20, cause of bureaucratic incom- FEMA, tried to explain away vows to explain how he has used them to create “an idea
the FEMA team in Puerto Rico petence can be debated. But was not delivered. the agency’s responsibility. meritocracy that strives to deliver meaningful work and
said it was ready. But a week efforts to chalk up the crisis “We have no control over die- meaningful relationships through radical truth and radical
later much of the island was to mainlander disregard for sel in Puerto Rico,” he said. transparency” (author’s emphasis). The metaphor at the
still in dire need of food, wa- life are dishonest. homes, businesses and infra- “We have contracts with cer- heart of Mr. Dalio’s thinking is a machine, a term that
ter and fuel—the basics of hu- Mr. Trump’s big mistake structure. This will be heavily tain companies that are giving appears over and over. “Think of yourself as a machine,” he
manitarian relief. has been his handling of the subsidized by U.S. taxpayers, us service.” writes at one point, “operating within a machine.”
The most immediate needs Jones Act, which mandates who, along with Puerto Ri- Right. And the fire depart- The first principle,
centered on the sick and el- that shipping from the main- cans, have a right to demand ment has no control over reasonably enough, is:
derly. About 97% of the island to the island use only globally competitive shipping water. “Think for yourself to
land lost electricity in the American-built-and-crewed rates. The troubles went beyond decide 1) what you want, 2)
storm. Diesel-run generators vessels. First he said he would If the president and Con- diesel and turned into a sup- what is true, and 3) what
were supposed to fill the void not suspend it as he did for gress are serious about their ply-chain nightmare in which you should do to achieve #1
in hospitals and dialysis cen- Texas after Harvey and Flor- concern for the territory, they chaos reigned. Gasoline lines in light of #2.” From there
ters and provide refrigeration ida after Irma. “A lot of peo- will stand up to the shipping stretched miles. Merchandise the book offers two sets of
for medicines like insulin. But ple that work in the shipping lobby and end once and for all at the port couldn’t be deliv- overlapping precepts, one for
the diesel fuel did not arrive, industry . . . don’t want [it] what has been an injustice to ered due to driver shortages life and one for work, both
and by midweek family mem- lifted,” he said. Well, duh. A Puerto Rico for nearly 100 and the collapse of the com- designed to cope with the
bers began to panic. Tearful lot of people don’t like compe- years. munications infrastructure. chronic difficulty that humans
Puerto Ricans begged for tition. But that’s hardly a good Meanwhile, the Boricua are Emergency management is have in comprehending reality.
help. argument for blocking it. slowly recovering from what all about anticipating disrup- Again and again the author
FEMA will no doubt learn Under pressure, he finally can only be described as a gi- tions and establishing contin- stresses the blind spots that
again from Maria. But so too said he would suspend the ant FEMA fubar. True, an is- gencies. The failure of the lo- afflict all of us and the need for humil-
should the rest of us, about Jones Act for Puerto Rico— land tyrannized by labor cal FEMA office to do so is ity in the face of how little we know. “You can
the folly of relying on govern- but only for 10 days, a mean- unions some 1,200 miles from organizational negligence, not never be sure of anything,” Mr. Dalio writes, echoing the first
ment to deal with a disaster ingless gesture. Florida with an annual per a mainland plot against our commandment of Bertrand Russell’s classic decalogue (“Do
even as predictable as the af- For more than a week the capita income of $29,000— Spanish-speaking brethren. not feel absolutely certain of anything”) and placing himself
termath of a hurricane. island’s ports have been piled and a bankrupt state-owned Write to O’Grady@wsj.com. squarely in a virtuous tradition stretching back to Socrates.
Despite these promising beginnings, ultimately Mr. Dalio’s
principles are a disappointing mix of the hardheaded and
How Politics Stalls Wireless Innovation starry-eyed, the insightful and inconsistent, the sensible and
clueless. Most of all, they are obvious. He emphasizes
embracing change, staying open-minded and facing up to
By Thomas W. Hazlett The most sensational failure, could cause interference with reached “co-existence agree- reality, all sound notions that will surprise no thinking adult.
T
Iridium, was created by Motor- Global Positioning System de- ments” with Ligado when it Useful nuggets include work principle 10.6c, which suggests
he Federal Communica- ola using technology from the vices, since they are tuned to agreed to reduce its emission having subordinates spend a few minutes writing a daily
tions Commission re- Reagan era. The company spent adjacent frequencies. Yet levels. But thousands of par- report on what they did that day—and, really, couldn’t all of
ceived a homework as- $6.5 billion in the nine months cheap remedies—such as a ties use the GPS band, which us benefit from keeping a journal? But we also get such
signment in 2009—and an following its 1998 launch. It gradual roll-out of new ser- has no owner or band man- chestnuts as “Beware of fiefdoms,” “Use checklists” and
extra $13 million for school seemed the only ones benefit- vices while existing networks ager, and complaints can be “Allow time for rest.” Life principle 4.1a says, in all
supplies. Congress ordered the ting from this quarantine of improved reception with bet- raised by virtually anyone. seriousness: “We are born with attributes that can both help
agency to write a “National airwaves were bankruptcy law- ter radio chips—were avail- Fending them off has become us and hurt us, depending on their application.”
Broadband Plan” to stimulate yers. able. In reality, the costliest a game of Whac-A-Mole. Even Some of Mr. Dalio’s ideas are more alarming than
the economy. The report, is- In 2004 the FCC moved to spectrum conflicts emanate if the reality is that new ser- anodyne. Seeing complex human systems as machines
sued in March 2010, focused relax L-Band rules, permitting from overprotecting old services deliver vastly improved seems dangerously reductive, and “radical transparency” is
on opening up dormant radio deployment of a terrestrial vices at the expense of the mobile broadband at little risk naive. Its pitfalls were painfully evident to Winston Smith in
spectrum for new uses. Citing mobile network. Satellite calls new. With its licenses snatched to existing radios, regulators “1984” and should be clear to the rest of us by now thanks
the tsunami of mobile data us- would continue, but few were away, LightSquared instantly are frozen. to a digital revolution that has commoditized our most
age, the study set a goal: The plunged into bankruptcy. This familiar impasse in the private information and exposed so much of it to hackers.
FCC should set free another Five years on, the company political spectrum begs for Radical truth, judging by press accounts of Bridgewater,
300 megahertz of prime band- The FCC unveiled its has recapitalized and re- correction. The FCC should let appears to mean continual and often public criticism, which
width, more than used by Ver- emerged with a new name, Li- Ligado use satellite licenses hardly seems conducive to open-mindedness.
izon and AT&T combined, for National Broadband gado. It has hired deft policy for cellular services. It should
wireless broadband by 2015. Plan in 2010—but players and is making deals to also permit competitors, in-
That move would juice compe- mitigate conflicts. Notably, it cluding Ligado, to bid for new From atop a hedge fund, nuggets of wisdom
tition, unleash innovation and couldn’t stick to it. has lowered the power of its L-Band spectrum rights. Re-
expand networks coast-to- emissions and has volunteered maining border disputes
arguing for radical transparency and for
coast. to leave its frequencies neigh- should be consigned to bind- thinking of yourself as a machine.
With time, the FCC’s pro- being made, and sharing fre- boring the GPS band quiet. To ing arbitration, not allowed to
gram to move television band quencies with cellular devices offset this capacity loss, it sandbag progress in open-
frequencies into mobile phone made eminent sense. By 2010, seeks to gain access to other ended skirmishing. This would Skeptical readers will find little need to contradict Mr.
and data markets was scaled L-Band licensee LightSquared spectrum now set aside for move radio spectrum out of Dalio, since he’s so good at the job himself. He extols
back and the timeline was ready to build a state-of- sparsely used and easily re- oblivion and into the mobile humility and simplicity yet offers a vast, clanking engine of
stretched out. Another big the-art 4G network, and the placed applications. Ligado broadband networks craved by tenets—and a book of nearly 600 pages, the first of two
chunk of spectrum slated for FCC announced that the 40 has asked the FCC to sell those consumers, innovators and the planned volumes, to convey just some of them. He insists
mobile was undone. This con- MHz bandwidth would become rights to the highest bidder. U.S. economy. Just like the Na- on evidence-based decision making yet categorizes people
tinues a long, sad saga depriv- available. LightSquared quickly Yet regulatory impediments tional Broadband Plan called in part on the dubious Myers-Briggs psychological typing
ing the U.S. economy of the spent about $4 billion of its continue to block progress. for in 2010. system. In one place he advocates focusing on even the
bandwidth to accommodate planned $14 billion infrastruc- Years after the L-Band spec- smallest problems yet attributes apocryphal quotes to
new technologies. ture rollout. Americans would trum was slated for productive Mr. Hazlett, a professor of Churchill and Einstein. Not to worry—elsewhere he urges
The story also involves sat- soon enjoy a fifth nationwide use in 4G, it lies fallow—now economics at Clemson and for- us to “be imprecise,” the better to think conceptually.
ellite phone licenses in the wireless choice. delaying upgrades to 5G. mer chief economist of the FCC Mr. Dalio says that his staff is like “my extended
FCC’s L Band, frequencies But in 2012 the FCC To use radio spectrum, par- (1991-92), is author of “The family” yet stresses getting rid of people who don’t
prime for cellular services but yanked LightSquared’s li- ties must stay in their lanes. Political Spectrum: The Tu- measure up or who resist Bridgewater’s unusual culture—
largely walled off for satellite censes. Various interests, Ligado, to enter the market, multuous Liberation of Wire- by exercising tact, presumably. And while he urges close
links. Companies like Globalstar from commercial airlines to seeks to control spillovers. less Technology, From Herbert attention to the way people are wired, he flouts the most
and TerreStar went bust oper- the Pentagon, complained Three major GPS makers— Hoover to the Smartphone” rudimentary understanding of human nature with the
ating these satellite networks. that freeing up the L Band Deere, Garmin and Trimble— (Yale, 2017). assertion that “when you enter into relationships with
others, your principles and their principles will determine
how you interact.”
Addiction Shouldn’t Excuse Criminal Acts The author’s account of his own life suggests otherwise.
“Principles” begins with a 125-page memoir in which the au-
thor recounts his rise from a modest middle-class back-
By Stephen J. Morse The facts belied Leroy Pow- Addiction is behavior: the per- It would be difficult to limit ground. After Harvard Business School he worked in com-
And Sally Satel ell’s claim. Under cross-exami- sistent seeking and using of the reach of Ms. Eldred’s de- modities until, for reasons unstated, he punched out his
J
nation at the trial, he testified drugs despite negative conse- fense. Courts would be inun- boss. He leveraged his knowledge of futures markets to start
ulie Eldred admitted steal- he’d had one drink that day, quences. True, changes in the dated with cases in which the Bridgewater in 1975, and it mostly flourished. But in 1993
ing jewelry last year to then stopped, knowing he had brains of addicts make it diffi- claims of addiction and com- his chief lieutenants told him in writing that he was making
support her opioid habit. to be in court. He was addicted cult to resist using. But a large pulsion will be easy to raise people at the firm feel “incompetent, unnecessary, humili-
A condition of her probation yet able to make a reasoned majority quit voluntarily and and hard to adjudicate. There ated, overwhelmed, belittled, oppressed, or otherwise bad.”
was that she refrain from us- choice to control his behavior permanently without treatment are no consensus biological or This intervention evidently spurred him to develop the
ing drugs. When she tested when there were foreseeable when they fully recognize the behavioral measures of either principles as “agreements for how we would be with each
positive for fentanyl 11 days consequences. alternatives and the negative addiction or capacity for self- other and my reflections on how we should handle every
later, the judge ordered her to consequences of using drugs. By control. situation that came up.” Mr. Dalio’s principles are now
prison until an inpatient treat- contrast, Alzheimer’s disease The importance of this cru- embedded in a megalomaniacal-sounding project to
ment bed was available. A state court takes up progresses no matter what. cial test case has been recog- automate a great deal of management at Bridgewater,
Ms. Eldred, 29, now claims a case that could set a Addicts respond to incen- nized by the major national ad- whose detractors have called its environment cultlike. The
the order to remain drug-free tives, such as the sanctions diction organizations. All of company maintains so-called Baseball Cards, which capture
was unconstitutional cruel and dangerous precedent. employed by treatment pro- them have submitted or signed data points about its employees to make the strengths and
unusual punishment, because grams in drug courts. These a friend-of-the-court brief, and weaknesses of each evident to all. Mr. Dalio writes that
her drug use was a symptom of programs give nonviolent de- only one doesn’t support Ms. “everyone’s believability is tracked and measured
her addiction. In other words, In 1968 there was no consen- fendants an alternative to jail Eldred. But Massachusetts systematically” using such tools in order to “actively record
she couldn’t help herself. On sus that alcoholism was a medi- and significantly reduce recidi- should not enshrine a theory in and weigh their experience and track records.” Most
Monday the Massachusetts Su- cal condition. Since the 1990s, vism rates. law that does not do justice to meetings are recorded.
preme Judicial Court will hear the medical community has A ruling in Ms. Eldred’s favor the complexities of drug use Although it’s hard to argue with success—Mr. Dalio has
her case. A ruling in her favor largely accepted the view that would cast doubt on the legality and addiction. The wisdom of earned some $49 billion for investors—there is no proof
could make it much harder to addiction is a “chronic and re- of such programs in Massachu- imprisoning Ms. Eldred is de- that his remarkable results flow from what’s on offer here.
administer justice and get ad- lapsing brain disease,” as Ms. setts—and elsewhere, since the batable—but the dangers of ac- Apple, Amazon and other enterprises have flourished
dicts the help they need. Eldred claims in her appeal. defense bar and the supporting cepting her defense are grave. under similarly brilliant and driven founders with
The U.S. Supreme Court Nora Volkow, director of the Na- organizations will surely bring demanding management styles even absent hundreds of
held in 1962 that addiction it- tional Institute on Drug Abuse, test cases in other states. That Mr. Morse is a law and psy- pages of principles or any pretenses about radical trans-
self can’t be criminalized. But has written that in addiction “a won’t be good for addicts. If di- chiatry professor at the Univer- parency. Bridgewater might be even more successful if its
in Powell v. Texas (1968), the person’s brain is no longer able version programs demanding sity of Pennsylvania. Dr. Satel, a founder and his minions were less consumed by process—
justices upheld a conviction for to produce something that is abstinence are unavailable, trial psychiatrist, is a scholar at the and put away their Baseball Cards.
public drunkenness even needed for our functioning,” judges may be more inclined to American Enterprise Institute.
though the defendant argued namely “free will.” sentence defendants to incar- They are co-authors of a brief Mr. Akst is the author of “We Have Met the Enemy:
he couldn’t control his actions. That’s an oversimplification. ceration rather than probation. supporting Massachusetts. Self-Control in an Age of Excess.”
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Tax Policy Center Propaganda Doctors, Not Bureaucrats, Make Innovations
R
epublicans face an uphill battle on tax assumptions of the House GOP’s “Better Way” As men and women of science, we those Medicare enrollees with high
reform, not least because opponents blueprint from 2016, yet that campaign docu- agree with Centers for Medicare & cost and complex care exit Medicare
Medicaid Services Administrator HMOs for FFS practices? Why did it
are willing to invent evidence to stop ment will certainly differ from any bill that
Seema Verma (“Medicare and Medic- take the government so long to join
it. Take Friday’s Tax Policy emerges this year. Last week’s aid Need Innovation,” op-ed, Sept. the current whistleblower lawsuits
Center report claiming to be The media’s go-to think GOP framework explicitly in- 20) that Medicare could use a jolt of that allege that Medicare HMOs have
clairvoyant about details of tank trashes GOP reform cluded discretion for commit- innovation. Physicians have long padded their diagnostic codes to up-
the Republican reform tees in Congress to iron out viewed innovation as a way of help- code risk and rip off taxpayers for
“framework” that haven’t without evidence. details. Case in point: The pa- ing our patients. billions?
been proposed. per doesn’t assume a fourth Ms. Verma’s vision is spot on when The Medicare and Medicaid man-
The Tax Policy Center is a tax-rate bracket for high earn- it comes to harnessing the work of in- aged-care lobbies have convinced ev-
joint project of the left-leaning Brookings Insti- ers that the framework left as an option. novators from across the country. eryone—except doctors and patients
tution and the Urban Institute that the media The larger issue concerns economic as- Physicians believe the Center for on the front lines—that insurance
routinely labels “nonpartisan.” Its record of sumptions. The Tax Policy Center assumes al- Medicare & Medicaid Innovation companies can do the harsh rationing
(CMMI) has the potential to be an in- necessary to balance the budget. They
hostility to any GOP tax reform that cuts tax most no growth impact from tax cuts, whether
novation lab by embracing transpar- always want to start with capitated
rates shows the opposite. And the latest evi- on capital or income. When growth increases ent model design and evaluation. care so they can pit doctors against
dence of bias is its willingness to jump to con- or revenues rise after a tax cut, as they did af- When the CMS follows through on patients for a fixed sum of money.
clusions about the GOP plan before crucial deter the 2003 tax cut, the center’s progressives its outreach to the medical field, it BRANT S. MITTLER, M.D., J.D.
tails are known. attribute it to something else. will find that physicians have been San Antonio, Texas
The center’s progressive economists re- The tax center is essentially consigning the focusing on how to better serve their
leased a “preliminary” estimate of the GOP tax U.S. economy to a fate of slow growth as far patients. Small-scale testing will help Would you buy a house or a car
plan that claimed the proposal would “reduce as the Obama “secular stagnation” crowd can develop the most promising ideas. without knowing the complete price
federal revenues by $2.4 trillion over the first see. Yet if the rate of GDP growth speeds up Physicians are eager to highlight and condition of the item? CMS calls
ten years and $3.2 trillion over the subsequent from the Obama pace of 2% a year to 3%, in- their ideas. for innovation in the way we run both
decade.” Also: The top 1% of taxpayers would comes would rise and revenues would increase DAVID O. BARBE, M.D. Medicare and Medicaid. How about
President leading with price transparency? Pub-
“receive about 50 percent of the total tax bene- to the Treasury by some $2.5 trillion. American Medical Association lish the mean and median for the top
fit.” The press immediate broadcast this with Partisans can honestly debate economic as- Chicago 100 services reimbursed by CMS.
headlines like “Republican Tax Cut Would Ben- sumptions, but the Tax Policy Center betrays Lehigh University
efit Wealthy and Corporations Most, Report its bias by making premature guesses based on In no other market sector is the Lehigh, Pa.
Finds.” Political mission accomplished. partisan assumptions. The center did a similar claim made that people paying cash
Yet the analysis is impossibly specific, given sandbag job on Mitt Romney’s tax reform pro- (a fee) for goods or services results The pioneering cardiovascular sur-
that last week’s blueprint excluded the income posal during the 2012 campaign, claiming it in cost inflation or lack of innovative geon at the medical school I attended
ranges for the individual brackets of 12%, 25% would have to raise taxes on the middle-class competition. had less than average results because
and 35%; the value of the expanded child tax and poor because it wouldn’t reduce certain Ms. Verma forgets to mention that he had less than average surgical
credit, and when that would phase out; rates loopholes. But those loopholes were very much physicians will not be paid unless candidates who otherwise had little
agreeing to be gatekeepers loyal to help or hope. In Ms. Verma’s world
for pass-through businesses, or safeguards for on the table in the Romney plan.
corporate profit-driven cost-control he might have found work washing
abuse that may limit who can claim the income The lesson for Republicans is that they had outcomes. The scandal will be when windows. She refers to practitioners
or how much; the discount rate at which cash better be prepared to fight back—early and of- profiteering payment schemes and as health-care providers, but the
and other corporate assets will be invited back ten. House Ways and Means Chairman Kevin the coercion of physicians into a term health-care provider is an Or-
to the United States; which deductions will be Brady called the report “misleading, un- gatekeeper role are legalized. wellian disguise improvised by HMOs
eliminated; and many other details that would founded, and biased,” and they shouldn’t hesi- ROBERT W. GEIST, M.D. to have doctors build Model Ts, or
be essential for any honest score. tate to describe the Tax Policy Center as the North Oaks, Minn. else. No wonder so many are demor-
The report says it based its guesses on the anti-reform propaganda shop that it is. alized.
Perhaps Ms. Verma can explain MICHAEL OBRIEN, M.D.
why Medicare Advantage HMOs don’t Vero Beach, Fla.
Trump’s Excellent Judges have to report actual patient out-
comes for things like acute heart at- We strongly endorse CMMI’s ap-
T
tacks, heart catheterizations and sur- proach in which “health-care provid-
he start of a new Supreme Court term jury pool against the officers with prejudicial geries to bypass arterial blockages to ers . . . compete for patients in a free
is a good moment to note some under- public comments, including the use of a fake the heart and brain. Every study pub- and dynamic market.” In a market-
reported news: President Trump is rap- name on the website of the Times-Picayune. lished in the leading medical journals based system that pays for value
idly remaking the federal ap- Justice appealed, but Judge looks at the volume and outcome of over volume, patients will receive
pellate and district courts, His four latest nominees Engelhardt was upheld by the such procedures and surgeries only in better care; providers will be re-
with highly qualified nomi- highlight his biggest Fifth Circuit he will join if he’s fee-for-service (FFS) Medicare. The warded for doing the right things for
nees who fulfill his campaign confirmed. results of Medicare HMO care are their patients; purchasers will be
promise to pick “constitu- political success. The speed of the nomina- never available for review. So how paying for what works; and our busi-
tional conservatives.” tions and the quality of the can consumers make the “better” nesses will no longer have to siphon
The White House an- clinical decisions she desires? money from investments in innova-
nominees is a result of the
Why has Medicare HMO care con- tion and job creation to pay for ris-
nounced its eighth batch of judicial nominees close ties between White House judicial vetters sistently been shown by the GAO and ing health-care costs.
on Thursday, including four excellent choices and the Federalist Society that is a national other CMS-funded analyses to cost WILLIAM E. KRAMER
for the Fifth Circuit Court of Appeals. They in- clearinghouse for conservative legal talent. Ju- billions more than comparable FFS Pacific Business Group on Health
clude a pair of Texans: Don Willett, who is dicial nominations are arguably the most suc- care? Why have studies shown that San Francisco
now on the Texas Supreme Court and is well cessful part of the Trump Presidency.
known for his witty Twitter feed; and James By our count—and we may have missed a
Ho, a Gibson, Dunn partner in Dallas who name or two—Mr. Trump has made 18 nomina-
clerked for Justice Clarence Thomas and was tions to appellate courts, 39 to district courts Florida Not Leader in Flood Insurance Claims
Texas solicitor general. and three to the U.S. Court of Federal Claims.
The other two Fifth Circuit nominees have The Senate has confirmed only four for the ap- In “Let’s Get Rational About Disas- high-risk homes (accounting for 30%
ter Risk” (Business World, Sept. 16), of flood claims) still insured is 3,828
notable legal achievements to their credit. Stu- pellate courts as Democrats use every possible
Holman Jenkins claims that the value (Calif.), 1,899 (Texas), 2,060 (N.J.)
art Duncan was solicitor general of Louisiana delaying tactic. They’re even trying to disqual- of Florida coastal property is inflated and 917 (Fla.). From this information
and general counsel for the Becket Fund for Re- ify Amy Coney Barrett, a nominee for the Sev- due to artificially low insurance alone, Florida is not among the top
ligious Liberty. He was counsel of record in Bur- enth Circuit, because she’s an “orthodox Catho- costs, particularly for flood. Further- beneficiaries of repeated flood claims.
well v. Hobby Lobby Stores, the landmark 2014 lic,” as Senator Dick Durbin put it in a question more, he asserts that this status quo Now consider total flood insurance
decision allowing closely held companies to be at a Senate hearing. is maintained by politically influen- payments for those same selected
exempt from regulations they object to on reli- With confirmation politics increasingly po- tial Northeasterners with beach states. Again, Florida trails the pack.
gious grounds. larized, Mr. Trump and Republicans are wise to homes in Florida. This is particularly striking consider-
Kurt Engelhardt is chief judge for the fed- move quickly to take advantage of this moment Surprisingly, page one of the same ing Florida has a relatively huge
eral district court for eastern Louisiana. In of Senate and White House control. If Demo- issue shows a figure under the cap- coastline of 1,350 miles, greater than
2013 he wrote a withering 129-page opinion crats take the Senate in 2018, Chuck Schumer tion “Repeated Claims Flood Insur- the four other states combined. Rela-
ance Program,” which provides data tive to length of coastline, New York
documenting misconduct by the Justice De- will try to block the confirmation of any conser-
that is incompatible with Mr. Jen- and New Jersey receive far more to-
partment’s Civil Rights Division and the U.S. vative nominee. Mr. Trump deserves more kins’s point of view. It shows the tal compensation for floods than
Attorney in prosecuting New Orleans police. credit than he’s getting for his judicial-nominat- number of homes with severe repeti- Florida. Perhaps the influential
Prosecutors attempted to inflame the potential ing operation. tive losses due to flooding in five se- Northeasterners are subsidizing flood
lected states between 1978 and 2015: insurance far closer to home.
Louisiana, Texas, New Jersey, New DERK BERGSMA
Arbitration Is Back at the Supreme Court York and Florida. The number of Port Charlotte, Fla.
T
he Supreme Court is back in session this bitration agreements that conflict with state
week, and so are the trial lawyers with laws. Yet the High Court has repeatedly ruled— The Excess of Lawyers Is a Burden on Society
attacks on legal arbitration despite re- notably in Concepcion and DirecTV v. Imburgia
Jonathan Adler’s review of Benja- viser documented I had no involve-
peated legal rebukes. On Mon- (2015)—that the FAA pre- min H. Barton and Stephanos Bibas’s ment in the client’s poor outcome.
day the Justices will get a Obama’s labor board empts state laws and court “Rebooting Justice” (“Why We Need Since there were multiple defendants,
chance to reinforce their rul- ignored precedent to rulings that prejudice arbitra- Fewer Lawyers,” Bookshelf, Sept. 7) is my attorney went to a high number of
ings when they hear challenges tion. a welcome and insightful analysis of a depositions and meetings over the
to an Obama National Labor promote class actions. The Obama NLRB in D.R. serious problem in America that next three years, being paid $500 per
Relations Board (NLRB) opin- Horton attempted to end-run needs to be corrected. The likelihood hour. When it came to trial, as I pre-
ion that bars arbitration class- the High Court’s rulings by of that happening is very slim. dicted, the judge dismissed me from
action waivers in employment contracts. holding that arbitration class-action waivers in In 2014, the population of attor- the case, “with prejudice,” but my at-
At issue is the NLRB’s 2012 D.R. Horton deci- employment contracts conflict with federal la- neys in the U.S. surpassed 450,000 torney made tens of thousands of dol-
sion that opened the door to labor class-action bor law and therefore are invalid. But the Su- and law schools add more than lars for attending meetings, knowing
34,000 new lawyers yearly. About 12% that I would be dismissed from the
lawsuits. Three appellate courts differed over preme Court held in CompuCredit Corp. v.
of them are government employed, case when the trial started.
whether an NLRB interpretation of the Na- Greenwood (2012) that a federal statute super- including 59% of the Senate and 42% RYAN SEARLE, M.D., ABEM
tional Labor Relations Act overrides the Fed- sedes the FAA only when there is a “contrary of the House in the 113th Congress Newburyport, Mass.
eral Arbitration Act. (The cases are NLRB v. congressional command.” Yet the NLRA—en- who had law degrees. This is three
Murphy Oil, Epic Systems v. Lewis, and Ernst acted before the era of class-action torts—con- times as many as any other common
& Young v. Morris.) tains no such command. law nation. These attorneys signifi- Pepper ...
The labor board held in D.R. Horton that ar- Unions argue that mandatory arbitration re- cantly contribute to the ubiquitous,
bitration class-action waivers violate Section quires workers to renounce their substantive unclear and voluminous government
And Salt
7 of the NLRA, which protects workers’ ability rights under federal law, but class actions are regulations that guarantee a vast THE WALL STREET JOURNAL
“to bargain collectively through representa- a procedural mechanism. The NLRA doesn’t number of potential lawsuits and
tives of their own choosing, and to engage in confer a right to engage in collective litigation, their potential income when they
leave government. Trial lawyers are a
other concerted activities for the purpose of and workers may pursue claims for violations
major source of Democratic Party
collective bargaining or other mutual aid or of federal labor law in arbitration. Workers are funding. Couple this with the ineffi-
protection.” According to the NLRB, class ac- more likely to vindicate their rights in arbitra- ciency of the courts causing trials to
tions constitute a “concerted activity” even tion where claims can be considered and re- be frequently delayed and to go on for
though this section of the law doesn’t mention solved on an individual basis. years, the legal system has become a
litigation. An eclectic coalition of Justices has upheld tremendous burden to Americans, es-
But the Supreme Court ruled in AT&T Mobil- arbitration. Justice Stephen Breyer wrote the pecially the taxpaying middle class.
ity v. Concepcion (2011) that the Federal Arbi- DirecTV 6-3 majority opinion while Justices El- I was named in a medical malprac-
tration Act makes arbitration agreements ena Kagan and Sonia Sotomayor concurred in tice suit. The plaintiff’s medical ad-
“valid, irrevocable, and enforceable, save upon CompuCredit Corp. Although Justice Clarence
such grounds as exist at law or in equity for the Thomas has held that the FAA doesn’t apply to Letters intended for publication should
revocation of any contract.” The Supreme Court proceedings in state courts, none of the cases be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
has construed these exceptions narrowly to in- on Monday present a tension between federal or emailed to wsj.ltrs@wsj.com. Please
clude violations of law and contract principles and state law. What’s really at stake is whether include your city and state. All letters
such as fraud. a federal agency can impair valid contracts and are subject to editing, and unpublished
Trial attorneys have time and again tried to override federal law as well as Supreme Court letters can be neither acknowledged nor
returned.
convince the Supreme Court to strike down ar- precedent. “Harry’s going by Uber this year.”
OPINION
Campus Speech and Anti-Klan Laws

By Jay Weiser discrimination in the racially motivated Unlike garden-variety street thugs,
A
future. “no-platforming”— antispeech rioters often have sub-
brawl broke out in an But universities group intimidation stantial assets and potential earn-
“Empathy Tent” at the are responsible only to suppress speakers. ings: 23% of Middlebury students
University of California, for taking reasonable Middlebury College come from households earning more
Berkeley last week, mark- precautions. A target demonstrators vio- than $630,000 a year. Plaintiffs can
ing the official start of col- of last semester’s lently disrupted so- subpoena colleges to expose the per-
lege riot season. Last week Attorney antispeech riots, Bret cial scientist Charles petrators, unsealing disciplinary in-
General Jeff Sessions braved protest- Weinstein, was Murray’s talk, pur- formation that would otherwise be
ers at Georgetown Law Center, mobbed and hounded sued him, and physi- confidential under the Family Educa-
where he promised to intervene in out of Evergreen cally attacked a Mid- tional Rights and Privacy Act. And al-
campus free-speech cases and urged State College after re- dlebury professor, though criminal convictions require a
students and universities to “stand fusing to comply with giving her a concus- “beyond a reasonable doubt” stan-
up against those who would silence a college-sponsored sion. Even without dard, civil cases apply the easier
free expression by violence or other “Day of Absence” in violence, Section “preponderance of the evidence”
means.” The targets of suppression which white people 1985(3) makes pro- standard.
have ways to hold colleges and riot- were “asked” to stay testers liable for ra- Nonviolent, nondisruptive pro-
ers to account using civil-rights stat- off campus. While Mr. cially motivated con- tests are crucial to American civic
utes and common-law torts. Weinstein claimed spiracies at public life, and conspiracy and action-in-
Administrators often “coddle” and that Evergreen State universities and per- concert lawsuits cannot suppress
“encourage” censorship, Mr. Sessions violated his right of haps private ones. In protesters’ right of free expression.
observed. That’s nothing new. After free speech, the col- contrast to the usual In NAACP v. Claiborne Hardware Co.
the Civil War, white students at what lege could have ar- American rule, pre- (1982), the U.S. Supreme Court
is now Washington and Lee Univer- gued that it acted vailing plaintiffs un- struck down a conspiracy lawsuit by
sity in Virginia attacked blacks asso- reasonably because der civil-rights stat- white merchants against a boycott.
ciated with the Freedmen’s Bureau. violent antispeech utes are eligible for The justices held 8-0 that the defen-
protests were still attorneys’ fees. dants were merely exercising their
novel and Mr. Wein- At both public and First Amendment rights.
Have you been censored stein was physically private universities, Students retain the right to advo-
threatened in class regardless of racial cate illegal acts, such as the de-
or shouted down? You only once. He and his or religious motiva- mands for segregated facilities at
may have legal recourse. wife, also an Ever- tion, state tort law several colleges. “Cultural appropria-
green professor, set- allows people who tion” advocacy, which seeks to en-
Here’s a handy guide. tled their claim for are physically at- force Jim Crow-style identity eti-
$500,000 and an tacked, threatened or quette, is also protected, including
agreement to resign. detained to bring the Yale Halloween protests over
DAVID GOTHARD
The college president, Robert E. Lee, Public universities civil lawsuits for whether blondes could costume
offered pieties and looked the other now have notice of damages. Businesses themselves as Disney’s Chinese hero-
way. In response to similar incidents, their duty to provide suffering property ine Mulan. But success in obtaining
Congress safeguarded civil rights security, which UC damage, such as the segregated facilities or cultural-ap-
with legislation known as anti-Ku Berkeley and the $100,000 attributed propriation penalties (such as Bow-
Klux Klan acts. University of Utah to February’s pro- doin College’s reported sombrero
Public universities are subject to just fulfilled for con- tests against Milo Yi- sanctions) could result in Section
the full sweep of the anti-KKK laws, servative writer Ben annopoulos at Berke- 1985(3) liability for students and col-
as well as more recent civil-rights Shapiro. Section 1985(3), which covers pri- ley, can sue, too. Tort law can also leges. One civil-rights-era case held
statutes. At San Francisco State Uni- Private universities have no First vate conspiracies and targets those make antispeech rioters liable for theater-company managers poten-
versity, Jewish students have filed Amendment obligation to provide a who, like masked Antifa attackers, go the loss of public-speaking contracts, tially liable for conspiring with the
suit under Section 1983 of the fed- forum for speech. But many riots in disguise—“a common tactic also as when DePaul University barred local sheriff to enforce segregation.
eral civil-rights law, alleging disrup- purport to attack white “supremacy” used by the detestable Ku Klux Mr. Shapiro because his appearances Police could also be liable under a
tion of their events violates the First or “privilege,” and if private univer- Klan,” as Mr. Sessions noted. The had been disrupted elsewhere. related statute, Section 1986, which
Amendment and the Equal Protec- sities act with deliberate indifference statute applies most clearly to ra- While Section 1985(3) covers only imposes a duty on law-enforcement
tion Clause of the 14th Amendment. to racially motivated attacks, they cially motivated physical attacks or conspiracies, state common law cov- agents to prevent Section 1985(3)
The First Amendment requires pub- may be liable to students or speak- efforts to exclude persons. Evergreen ers everyone who acts in concert to conspiracies.
lic universities to treat speech neu- ers. Colleges are subject to antidis- State is a classic case: After disrupt- deprive victims of their rights, Like homecoming, political intimi-
trally, regardless of the message. Ad- crimination statutes such as Section ing Mr. Weinstein’s class, students whether or not they conspired be- dation is a college tradition. With
ministrators may not tell police to 1981, an anti-KKK act that would detained the college president and forehand. Many college riots are many college administrators seem-
stand down in the face of a “heck- cover student and speaker contract apparently posted photos of them- planned in advance, but some partic- ingly seeking an empty plinth for
ler’s veto.” rights. If they accept federal fund- selves brandishing baseball bats on ipants just show up, like the Berkeley one of those Robert E. Lee statues
In 2013 at New York’s University at ing—and all but a handful do—they Facebook. Some faculty members de- undergraduate who told Newsweek coming down elsewhere, civil law-
Buffalo, police let counterprotesters are also subject to Title VI of the manded disciplinary action against he wanted the safety of an anony- suits may save free speech from be-
shut down a pro-life demonstration. Civil Rights Act of 1964. Mr. Weinstein and later assembled mous mob. Liability for intentional coming a lost cause.
This June the university settled, pay- Institutions are not the only pro- with masked Antifa members who torts is joint and several: Each mem-
ing the plaintiffs’ attorney fees and spective defendants. Campus riot- attacked counterprotesters. ber of the group is responsible for all Mr. Weiser is an associate profes-
promising to refrain from viewpoint ers themselves may be liable under Section 1985(3) may also apply to damages caused by any member. sor of law at Baruch College.
The U.S. Can No Longer Afford Deficit-Increasing Tax Cuts

By Jason Furman responsible stance, calling for reve- applies only to a well-designed tax can cut taxes by an additional $450
A Growing Burden
D
nue-neutral tax reform under so- reform. Reducing rates can help the billion without counting the cost
uring the debt-ceiling crisis called static scoring with any addi- Revenue and debt as a share of GDP at economy, but sustained higher defi- because this would simply be re-
and fiscal negotiations of tional revenue generated by growth time of previous and proposed tax cuts cits hurt it. The net effects may be placing a set of temporary stimulus
2011-12, I frequently heard used for deficit reduction instead of positive at first. Over time increased measures and low-priority tax
from business leaders about the offsetting even more tax cuts. 1981 2001 2017 deficits will outweigh the benefits breaks that it deliberately phased
need for a grand bargain to raise The wide consensus on the need from rate reductions, resulting in out just two years ago. Does any-
revenue and cut spending in the for revenue-neutral reform reflected Revenue 19.1% 18.8% 17.3% lower growth and a smaller econ- one believe Congress will not come
manner proposed by the Simpson- a recognition that the 1981 and Debt 25.2% 31.4% 76.7% omy. The Penn-Wharton Budget back and extend these tax cuts
Bowles fiscal commission. The tax- 2001 model of tax cuts makes no Model, run by Kent Smetters, a re- again even after crediting itself
Source: CBO THE WALL STREET JOURNAL
reform proposal announced by the sense in today’s fiscal environment. spected economist who served in twice with the savings from ending
White House and Republican leaders Tax revenue as a percentage of the George W. Bush administration, them?
last week would do the opposite, gross domestic product is lower to- pay for themselves. Estimates by a found that over two decades dy- The economy needs a fiscal plan
adding trillions of dollars to the day than it was when Presidents wide range of economists and the namic scoring would add to the cost that combines an increase in reve-
debt. If the business community still Reagan and George W. Bush cut nonpartisan scorekeepers at the of the Trump tax cuts. nues with entitlement reforms that
believes in fiscal responsibility, now taxes. Moreover, the ratio of debt Joint Committee on Taxation have In addition, Republicans are pro- protect the poor a la Simpson-
would be the time to speak up. held by the public to GDP is now found that the additional growth as- posing to allow businesses to ex- Bowles. I do not expect such a plan
77% and rising—more than twice sociated with well-designed tax re- pense their investments—but only anytime soon, but the business
the level of 1981 or 2001. form may offset 20% to 30% of the temporarily. The budget-reconcilia- community could do us all a service
Compared with 1981 and After much fanfare, Republican gross cost of tax cuts—not counting tion procedures will likely require by telling Congress not to make the
leaders have announced the latest dynamic feedback. It is simply illogi- the rest of the tax cuts to be tempo- problem worse.
2001, revenue is down iteration of their tax-reform plan. cal to claim that we will make prog- rary as well—hardly the reduction
and the debt is way up Even being generous and assuming ress on the deficit with a $1.5 tril- in uncertainty for which so many in Mr. Furman, a professor of prac-
the plan will include offsets that lion tax cut even if the true cost of the business community have been tice at the Harvard Kennedy
as a share of GDP. have never explicitly been proposed the tax cut after factoring in account clamoring. School, was chairman of the White
or defended, the cost would exceed growth is a mere $1 trillion. Another weak defense of deficit- House Council of Economic Advis-
the $1.5 trillion in proposed cuts Moreover, the 20% to 30% offset increasing tax cuts is that Congress ers, 2013-17.
The tax-reform effort started on a Senate Republicans are considering.
different track. The House Republi- That would balloon the debt to 98%
cans’ 2016 “Better Way” plan called
for revenue-neutral tax reform that
would bring down rates while clos-
of GDP in 10 years. It is as if I sent
my children off to perform chores
in exchange for a candy bar, but in-
Close Calls for Big-League Leaders
ing loopholes and broadening the stead they discussed doing chores By Fay Vincent ability to predict the public’s reac- for life. Sports decision makers sel-
I
base. Senate Majority Leader Mitch for six months, did none of them, tion. Not all sports commissioners dom sell a tough decision as well as
McConnell said tax reform “will asked for $1.50, and tried to use it n my time as the commissioner have that political acumen: I was Giamatti did.
have to be revenue-neutral” so as to buy five $1.50 candy bars. of Major League Baseball, I often roundly criticized for my decision How should executives and other
not to add to the debt. The Business Defenders of large unpaid-for recalled Franklin D. Roosevelt’s not to cancel the World Series. officials deal with the recent spate
Roundtable has also stated that tax tax cuts argue that we cannot support for the continuation of pro- The often ignored aspect of this of protests at NFL games? There is
reform should “be achieved in a rev- bring our deficit down without fessional baseball games after the interplay between sports and public an ancient legal maxim that the per-
enue-neutral manner.” Though the higher growth. Growth has been U.S. entered World War II. In the af- issues is the reality that the sports son who defines the issue can com-
Trump administration has been in- too low for too long and raising it termath of the 1989 San Francisco commissioners work for the owners mand the decision, but the NFL situ-
consistent in its public pronounce- should be a top priority, but no se- earthquake, I decided not to cancel ation already has become a raucous
ments, the president’s budget pro- rious analyst has ever claimed that the World Series—played between mess. It cries out for a balanced and
posed an even more fiscally tax cuts generate enough growth to the Oakland Athletics and the San Sports have always had measured statement of governing
Francisco Giants—because I thought principles by people who can com-
the games would demonstrate the a political dimension, mand respect. Perhaps former Sec-
community’s resiliency. Sports are and commissioners often retaries of State Condoleezza Rice
often an escape from daily life, but or James Baker.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch Robert Thomson they don’t exist in a vacuum. The face difficult decisions. In sports management, as in the
Executive Chairman, News Corp Chief Executive Officer, News Corp idea that American sports can avoid political world, there is no skill
Gerard Baker William Lewis becoming enmeshed in major events more valuable than the ability to
Editor in Chief Chief Executive Officer and Publisher and the hot-button issues of the day of the teams. The economic dimen- state what has to be decided. Even
Matthew J. Murray DOW JONES MANAGEMENT: is a myth. sions of their decisions cannot be as private businessmen, professional
Deputy Editor in Chief Mark Musgrave, Chief People Officer; Sports have always had a political ignored. In 1989, I knew that if I was sports commissioners must respond
Edward Roussel, Innovation & Communications;
DEPUTY MANAGING EDITORS:
Anna Sedgley, Chief Operating Officer & CFO;
dimension, and politicians have long able to keep the World Series going, to public pressure and define what
Michael W. Miller, Senior Deputy;
Thorold Barker, Europe; Paul Beckett, Katie Vanneck-Smith, President tried to use them for parochial pur- the owners would benefit hand- constitutes tolerable behavior on
Washington; Andrew Dowell, Asia; OPERATING EXECUTIVES: poses. Similarly, sports leaders real- somely. In 1963, Rozelle was influ- the part of the players. They must
Christine Glancey, Operations; Ramin Beheshti, Product & Technology; ize there are times when athletic enced by the pressure not to hurt move quickly to explain that dis-
Jennifer J. Hicks, Digital; Jason P. Conti, General Counsel;
Neal Lipschutz, Standards; Alex Martin, News; Frank Filippo, Print Products & Services; competitions must take a back seat the team owners and others whose rupting games or offending paying
Shazna Nessa, Visuals; Ann Podd, Initiatives; Steve Grycuk, Customer Service; to current events. Commissioner income would have been affected by customers is out of bounds. After
Matthew Rose, Enterprise; Kristin Heitmann, Transformation; Bud Selig canceled Major League a cancellation. all, the ultimate authority is the
Stephen Wisnefski, Professional News Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International games for a week after 9/11. Pete For any top executive in sports or customer, whose commercial sup-
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
DJ Media Group: Rozelle, the National Football elsewhere, the ability to make fine port pays everyone’s salaries.
Almar Latour, Publisher; League commissioner when Presi- distinctions is vital—but even more Accommodation is possible when
WALL STREET JOURNAL MANAGEMENT: Kenneth Breen, Commercial
Suzi Watford, Marketing and Circulation; Professional Information Business: dent Kennedy was assassinated, did important is the ability to sell the good leaders meet fuzzy protests
Joseph B. Vincent, Operations; Christopher Lloyd, Head; not cancel the games on the week- final decision. For instance, former with focused responses. Unfortu-
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head end after the killing. He regretted Major League Baseball Commis- nately, that hasn’t happened yet.
EDITORIAL AND CORPORATE HEADQUARTERS: the decision for the rest of his life. sioner Bart Giamatti carefully ex-
1211 Avenue of the Americas, New York, N.Y., 10036 The art of determining when to step plained to the public why Pete Rose Mr. Vincent was commissioner of
Telephone 1-800-DOWJONES
back and when not to requires the was being banished from baseball Major League Baseball, 1989-92.
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BUSINESS & FINANCE

© 2017 Dow Jones & Company. All Rights Reserved. * * THE WALL STREET JOURNAL. Monday, October 2, 2017 | B1
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Google Offers Hand to News Publishers

Search engine to end biggest critics of its power help increase subscriptions, day that the company is in- Google and Facebook domi- caused years of budget cuts
over the internet. including enabling users to log vestigating whether Russian- nate the internet ad industry, and staff reductions at news
‘first click free’ policy Google said it will end this in with their Google pass- linked entities used its ads or and news organizations are organizations, which Google
that upset industry; week its decade-old “first words to simplify the sub- services to sway opinion increasingly reliant on those says led it to act.
click free” policy that re- scription process and sharing ahead of last year’s U.S. pres- two tech giants for web traf- “We really recognize the
new subscription tools quired news websites to give user data with news organiza- idential election, following fic. Google says it drives 10 transition to digital for pub-
readers free access to articles tions to better target potential similar moves by Facebook billion clicks a month to publishers hasn’t been easy,”
BY JACK NICAS from Google’s search results. subscribers. Inc. and Twitter Inc. lishers’ sites. Google Chief Business Officer
The policy upset publishers With billions of people us- The new publisher rules are Some newspapers even Philipp Schindler said in an in-
Google is rolling out a that require subscriptions, ing its search, YouTube and good news for the print indus- asked Congress this year to terview. He said a strong news
package of new policies and believing it undercut their ef- other web properties, Google try, which has largely strug- exempt them from antitrust industry boosts the utility of
services to help news publish- forts to get readers to pay has an outsize influence on a gled to convert its business laws so they could negotiate Please see GOOGLE page B2
ers increase subscriptions, a for news. wealth of industries and model to the internet as print collectively with the tech
move likely to warm its icy re- Google, a unit of Alphabet modern society. The Wall advertising sales have plum- giants. S.I. Newhouse Jr., Condé Nast
lationship with some of the Inc., said it also plans tools to Street Journal reported Fri- meted in the digital age. Those challenges have powerhouse, dies at 89....... B9
The Market’s Hottest Videogame Isn’t Even Finished Yet Emerging Markets
Have a Torrid Year,
But Investors Wary
BY CAROLYN CUI Emerging Markets exchange-
traded fund to the highest
Emerging-market stocks are level since January 2016, ac-
on pace for their best year cording to Trade Alert.
since 2009, but more investors These investors have been
are seeking protection against buying options as a hedge
a possible downturn. against any downturn in
Stocks in emerging markets emerging-market stocks,
rose 6.6% in the third quarter. rather than exiting positions
That brings this year’s gains to and giving up the ability to
25%, which—if the level benefit from additional gains.
holds—would be its best an- Still, the higher cost of
nual performance since a 75% hedging reflects how investors
return eight years ago. The are becoming concerned that
MSCI Emerging Markets Index the forces that have supported
has yet to post any significant this year’s rally may be giving
losses this year, a rare tran- way.
quility for an asset class that In August, China’s factory
routinely experiences sharp output, retail sales and fixed-
selloffs. asset investment all slowed
BLUEHOLE STUDIO
The rally reflects faster from the prior month, raising

earnings growth, a weaker dol- concerns that the world’s sec-
lar and easy global monetary ond-largest economy might
policies that make riskier in- have cooled down again. In the
SNEAK ATTACK: The industry was caught off guard by the success of Bluehole Studio’s ‘PlayerUnknown’s Battlegrounds,’ a vestments more attractive. U.S., rising business confi-
multiplayer survival game that has raked in hundreds of millions of dollars in sales without even being a finished product. B4 But as the gains pile up, dence, a recovery in economic
many investors are taking growth and the onset of the
steps to hedge themselves as Federal Reserve’s balance-
they worry about a pullback. sheet reduction efforts all
How to Control a Self-Driving Car

Rising demand for this pro- pointed toward higher U.S. in-
tection has pushed the cost of terest rates, which could help
buying options against de- stabilize or even strengthen
clines in the iShares MSCI the dollar.
Manufacturers wrestle with the challenge of safely meshing autopilot with driver
BY TIM HIGGINS
AND MIKE COLIAS
maker continues to wait for
Congress to pass legislation
driver and machine.
Congress is still deliberat-
Waymo, the driverless-car
unit of Google parent Alpha-
INSIDE
paving the way for autono- ing how to establish rules bet Inc., are planning to skip WSJ Dollar Index
This summer, Audi held an mous vehicles, governing driverless cars, for the interim step, convinced 89
elaborate media event in “It’s not a matter of need- now leaving it to a patch- there isn’t a reliable way to
Spain to celebrate a new se- ing permission, it’s more a work of state laws. Last hand off the wheel. 88
dan that would allow drivers matter of wanting to intro- week, senators said they Others are devising semi- 87
to let go of the wheel and duce the car when we know reached a bipartisan deal on autonomous vehicles that
pedal while in traffic jams what the ground rules are,” a draft of a bill that would rely on humans when driving 86
and pay attention to some- said Brad Stertz, Audi’s di- help speed development, but conditions exceed the com-
85
thing else. rector of government affairs, the outcome is uncertain. puter’s abilities.
The driverless technology who acknowledged a shift in “This legislation proposes General Motors Co. is 84
heralded a new era for main- timing. common sense changes in marketing the new Cadillac
July August September
stream auto makers in their Audi’s predicament re- law to keep pace with ad- CT6 sedan, due out this fall,
pursuit to create fully auton- flects the challenge for auto vances in self-driving tech- which lets drivers go hands- Source: WSJ Market Data Group THE WALL STREET JOURNAL.
omous vehicles. But the roll- makers as they plunge into nology,” Sen. John Thune, free on the highway—but the
out by Volkswagen AG’s lux- an awkward phase of devel- the Republican chairman of car also features eye-tracking DOLLAR BREAKS LOSING STREAK,
ury unit—with production
for the U.S. originally
opment years before fully
driverless cars are ready:
the Commerce Committee,
said in a statement when an-
technology that forces the
driver to look at the road or
OTHER QUARTERLY HIGHLIGHTS
planned to begin this year— how exactly to pass control nouncing the deal. the robot pilot will disen-
is now uncertain, as the car back and forth between Some developers, such as Please see CARS page B2 MARKETS REVIEW & OUTLOOK, B5-8
KEYWORDS | By Christopher Mims
Facebook’s Impact Mystifies

Users, and Possibly Facebook
It’s a good shapes our world. Unfortu- sored and distributed like
time to re-ex- nately, Facebook itself seems ads, and ads themselves can
amine our re- just as mystified, providing a go as viral as a wedding-fail
lationship response to all of this that video, there is hardly a differ-
BECAUSE HAPPENS.
with Facebook has left many unsatisfied. ence between the two. And
Inc. What the company’s lead- we now know that if an ad
Over the ers seem unable to reckon from one of Facebook’s more
past month, it has been re- with is that its troubles are than five million advertisers
vealed that Facebook hosted a inherent in the design of its goes viral—by making us feel
Russian influence operation flagship social network, something, not just joy but
that might have reached be- also fear or outrage—it will
tween three million and 20 cost less per impression to
million people on the social CEO Mark spread across Facebook.
network, and that Facebook Zuckerberg Keeping people sharing
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B2 | Monday, October 2, 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
Activision Blizzard......B4
Adidas.........................A1
Advance Publications.B9
F
Facebook......................B1
Ford Motor..................B2
G
...................................B13
N
Nestle........................B13
News Corp...................B2
Ford’s Boss Gets Ready to Tinker
Airbnb..........................B3 BY CHRISTINA ROGERS dealers or the company.
New York Times.........B2
Alphabet ................ B1,B2 General Mills.............B13
General Motors ..... B1,B2 Norwegian Air Shuttle Courting Wall Street Among Mr. Hackett’s other
Altor BioScience.........B3 ...................................B13 DETROIT—Ford Motor stops: Ford’s operations in
Amazon.com...............A4 GoldenTree Asset Ford’s share price has climbed since CEO Jim Hackett took over in May,
Anhui Zotye Automobile Management ............ A4 R Co.’s new boss spent the sum- rising about 10%, but investors are still looking for a firmer strategic plan. Turkey and Russia, and a
.....................................B2 Google ......................... B1 Ryanair Holdings ...... B13 mer touring the auto maker’s transmission plant in subur-
Apple.........................B13 H S global operations, brainstorm- Ford daily share price ban Detroit. In September, he
ASM Sports..............A12 Hershey.....................B13 Sconset Strategies...B12 ing with his executives on new met with union leaders from
$12.5 a share June 20
B Hormel Foods............B13 SpaceX.........................B3 business concepts and even Ford says it will move production Friday Ford’s U.S. factories and paid a
Barclays.....................B13 J Steelcase.....................B2 paying a visit to an electric- of the U.S.-sold Focus compact car $11.97 visit to Microsoft Corp.’s
Bluehole Studio..........B4 J.P. Morgan Chase......B5 T car maker in Sili- 12.0 from Michigan to China headquarters in Redmond,
Brahman Capital.........A4
K TOTE Maritime Puerto THE con Valley that his Wash., after an appearance by
C Rico...........................A3
Chongqing Casin
Kase Capital
Toyota Motor..............B2 WEEK predecessor had 11.5 the software giant’s CEO, Sa-
Management ............ A4 AHEAD considered buying. tya Nadella, at a Ford leader-
Enterprise Group....B12 Kellogg.......................B13 Twitter ........................ B1
CHX Holdings............B12 U Now, he is 11.0 ship meeting in August.
Citadel.........................A4 L
Uber Technologies ...... B2 ready to start tin- Mr. Hackett said his travels
Coca-Cola...................B13 Lyft..............................B2
Unilever.....................B13 kering under the hood. May 22 to Silicon Valley, a place he
E M 10.5
W Jim Hackett was promoted in Jim Hackett July 26 frequented when running
Electronic Arts............B4 Mahindra & Mahindra
Eurostat......................A2 .....................................B2
Waymo........................B1 May to chief executive after the appointed Ford CEO Ford issues new 2017 guidance, Steelcase for two decades, af-
Exchange Capital......B12 Microsoft ............... B2,B4 Y board ousted then-CEO Mark 10.0 indicating weaker-than-predicted fect his approach to business.
Expedia........................A4 Mondelez International YouTube.......................B1 Fields, amid concern about the pretax profit “I did learn and understand
company’s strategy. After 9.5 the culture out there,” he said
INDEX TO PEOPLE spending several months asking

questions and strategizing, the
62-year-old former office-furni-
May June
Source: WSJ Market Data Group
July Aug. Sept.
THE WALL STREET JOURNAL.
during a recent conference call
with analysts and investors.
“It’s steeped into my thinking,
B Gray, C. Boyden .......... B3 P ture executive is set to provide optimism, innovation and
Baker, Sean...............A13 Griffin, Kenneth..........A4 Papas, Nick ................. B3 an update on Ford’s progress at emphasis on all-electric” vehi- quick action. questioning the status quo.”
Benkler, Yochai...........B4 H S an investor meeting Tuesday. cles, a Morgan Stanley auto This past week, Ford an- Before being named CEO,
Bhar, Robin ............... B12 Harris-Dawson,
Blazer, Marty..............A1
Schindler, Philipp........B1 Mr. Hackett is expected to analyst, Adam Jonas, wrote in nounced a deal with ride-hailing Mr. Hackett was recruited by
Marqueece ................ B3 Sitrick, Mike................B3
C show how Ford is streamlining a recent research note. “We service Lyft Inc. to test its self- Ford Chairman Bill Ford to run
J Sobel, Robert..............A4
Soon-Shiong, Patrick..B3 its core business while pursu- are not convinced investors driving cars on Lyft’s network the company’s Smart Mobility
Cher.............................B3 Johnson, Brian............B2
Clayton, Jay .............. B12 Staley, Jes.................B13 ing futuristic ideas. The 114- are prepared for the required and co-develop software to con- unit, a Silicon Valley operation
K year-old company survived the sacrifice to near-term profit.” nect Ford vehicles with the San charged with pursuing future
Cohen, Steven A. T
Kelley, David...............B2
.....................................A4 Thomas, Chas ........... B12 recession last decade far bet- Other analysts say Mr. transportation ideas. Since
Curtis, Lisa................A14 Kemery, Ebele.............B6
Kerin, John................B12 Thomson, Robert........B2 ter than its Detroit competi- Hackett needs to rekindle taking the company’s helm,
D Kuflik, Mitchell...........A4 Throsby, Tim.............B13 tors, but now feels growing Ford’s competitiveness with Ford CEO Mr. Hackett has hired IDEO, a
Dalio, Ray....................A4 Thune, John ................ B1
M Tilson, Whitney..........A4 pressure from tech companies certain peers and boost its Jim Hackett is design firm once majority-
F Middleton, Fred .......... B3 and traditional rivals in the profit margin. General Motors likely to place owned by Steelcase, to consult
W
Flanagan, Troy............B3 Musk, Elon..................B3
Waldman, Adam.........B3
emerging era of self-driving Co., for instance, has shown a big bets and on how to inject more “design
G O Wilson, Kinsey............B2 cars and ride-sharing services. greater willingness to make push for quick thinking” into Ford’s corporate
Gingras, Richard ......... B2 Olsen, Adam ............. B12 Wong, Hing C..............B3 Wall Street has yet to fully bold cost-cutting moves, in- action at the activities, people familiar with
embrace Ford’s leadership cluding exiting its unprofitable auto maker. the move said.
change at a time when U.S. car European operations, while After taking over at Steel-
sales are softening. Ford’s also focusing more sharply on case, Mr. Hackett took aim at
Uber CEO Heads for London stock has risen 10% since Mr.
Hackett took charge, but in-
future technologies.
Barclays analyst Brian John-
Francisco-based company’s app.
Ford also is studying a
the product that was consid-
ered the company’s bedrock
BY SAM SCHECHNER But the San Francisco- vestors are still looking for a son said Mr. Hackett needs to partnership with India’s Ma- offering: cubicles.
AND WIKTOR SZARY based company is also turning firmer strategic road map. take a “bold course of action” hindra & Mahindra Ltd. that At one point he walked into
on the charm. Chief Executive Under Mr. Hackett, the to revive interest on Wall could cover a swath of ideas, a planning meeting and de-
Uber Technologies Inc.’s Dara Khosrowshahi, who took company’s leadership team set Street. “In the past few years, from electric vehicles to con- clared that any furniture the
new chief executive plans to the reins at Uber in early Sep- up several mini war rooms in Ford simply hasn’t had a com- nected-car services, and is company made that stood “be-
meet Tuesday with London’s tember, plans at Tuesday’s conference spaces at Ford’s pelling narrative that investors pursuing a joint venture with low the belt line”—low filing
top transport regulator to meeting with the agency’s Dearborn, Mich., headquarters, could latch onto,” Mr. Johnson China’s Anhui Zotye Automo- cabinets, desks, etc.—should
plead for a reversal of the commissioner, Mike Brown, to according to people familiar wrote in a research note. bile Co. to form a new elec- be put on wheels, said David
city’s decision to strip the ask about specific complaints with the matter. Executives Mr. Hackett’s hiring came tric-car brand in the world’s Kelley, the founder of IDEO.
ride-hailing company of its op- and how the company could have huddled there to sketch after Ford’s board grew con- largest vehicle market. That would allow office work-
erating license. resolve them, an Uber spokes- out new concepts—often on cerned about how the com- Mr. Hackett also needs to ers with laptops and cell-
The agency, Transport for woman said. sticky notes and sheets of pa- pany would maintain high address concerns dealers have phones, who no longer are tied
London, recently cited what it “We want to work with per stuck to the wall—in an ef- profits while competing with had about the company shifting to desks, to reconfigure their
called a lack of corporate re- London to make things right,” fort to shake up the company’s tech firms such as Google par- too much attention away from workspaces. “This was huge,”
sponsibility as the reason for the spokeswoman said. thinking on everything from ent Alphabet Inc. that are its current product portfolio. Mr. Kelley said. “Everyone was
not renewing Uber’s license to A spokesman for Trans- its culture to branding. edging in on the car industry. The issue arose during Mr. thinking, ‘How are we going to
operate a private-hire car ser- port for London confirmed it “We expect Ford’s next Associates say Mr. Hackett, Fields’s tenure when he empha- do this?’ ” But Steelcase fig-
vice in the city. is arranging the meeting strategy to be more open to a former CEO of Michigan- sized future projects such as ured a way, increasing its fo-
Uber plans to appeal the “following an approach from partnerships, new structures, based Steelcase Inc., is likely car-sharing services with no cus as a purveyor of open-plan
ruling in court. Uber.” new entities, and far greater to place big bets and push for near-term profit potential for workplaces.
CARS To ensure the driver fixates

on the road, an infrared cam-
era mounted on the steering
column tracks the eyes.
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The disparate approaches works only under about 40
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found Autopilot lacked proper and urged drivers to remain to abandon efforts to create a is aiming for the feature to
safeguards to prevent its mis- attentive. Tesla contends Auto- semiautonomous system and reach the U.S. by the fall of
use. pilot is safer than a human focus instead on developing 2018—though it is still debat-
The NTSB warned that driver without the aide. fully driverless vehicles. ing whether it will begin pro-
semiautonomous features such Research has shown it takes GM’s Cadillac emphasizes duction of the system without
as Autopilot could lull drivers most drivers two to three sec- its new auto-driving system, knowing if it will be sold.
into a false sense of security. onds—perhaps longer if they keeps humans engaged. De- “We don’t want to have a
Federal investigators esti- are occupied—to take back signed to activate with the a system built up and locked in
mated the Tesla driver had at control of an automated car. push of a button on most high- and ready to go out on dealer-
least 10 seconds to take con- “We have concerns that ways in the U.S. and Canada, ship showrooms if there’s go-
trol of the sedan before hitting drivers may give over too the system takes over steering, ing to be a change,” Audi’s Mr.
a truck crossing the highway, much control and take away acceleration and braking. Stertz said.
GOOGLE disabled free access to its sto-

ries from Google search. As a
result, Journal stories were
demoted in Google’s search
surface more articles from
publications subscribed to by
users.
And Google said it aims to
business. “This is not some
secret disintermediation
strategy,” he said. The finan-
cial arrangement isn’t yet
To ttransfer
T f your accountt visit:
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ibkr.com/ibcard
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Google search and helps Google search by 38% and cess by enabling users to use more from a cover-the-cost
Google’s ad business, which from Google News by 89% in login information and credit- perspective.”
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THE WALL STREET JOURNAL. Monday, October 2, 2017 | B3
BUSINESS NEWS
Pop Star
Cher Sues
Musk Looks to Superfast Airliners
Proposed vehicle
Over Sale could take passengers
anywhere around
Of Stock globe in less than hour
BY JOSEPH WALKER BY ANDY PASZTOR
Pop star Cher alleges she Renowned for seeking fresh

was duped into selling her challenges, SpaceX founder
shares in a small biotechnol- Elon Musk has revealed a
ogy company to billionaire en- vague hankering to eventually
trepreneur Patrick Soon- expand his pioneering space-
Shiong “at a fraction” of their transportation company into
real value, according to a civil the superfast airliner business.
complaint filed in Los Angeles Capping off a presentation
Superior Court on Friday. about proposed Mars explora-
The complaint says Cher tion plans, Mr. Musk on Friday
PETER PARKS/AGENCE FRANCE-PRESSE/GETTY IMAGES
sold her stake in privately held sketched out possible ways to

Altor BioScience Corp. for use the proposed spacecraft,
$1.50 a share, or $450,000, to equipped with small wings at
Dr. Soon-Shiong in January the rear and weighing more
2016. Her lawsuit targets Al- than 1,200 tons, to whisk pas-
tor, Dr. Soon-Shiong, Hing C. sengers to any destination
Wong, Altor’s former chief ex- around the globe in less than
ecutive, and Fred Middleton, an hour.
its former vice chairman, ac- “If we’re building this thing
cusing them of conspiring to to go to the moon and Mars,”
conceal promising clinical trial he told a space conference in
data of the company’s drugs, Australia, “then why not go to
in an effort to help Dr. Soon- other places on earth as well.”
Shiong take control of the The references lacked tech-
Miramar, Fla.-based company nical and financial details, and SpaceX founder Elon Musk spoke in Australia about his desire to eventually develop a hypersonic vehicle with spaceship technology.
for a cheap price. Mr. Musk never indicated he
“The lawsuit has no merit was committed to pursuing adapted from space explora- moving faster than five times 100 passengers and large seat “should be about the
and we intend to vigorously the notion. There was no mention. the speed of sound—increas- amounts of cargo. For airline same as full fare economy” in
defend against it,” Mike Si- tion of even a preliminary Intended to reach speeds ingly is being looked at for applications, it might be possi- a conventional aircraft. “For-
trick, a spokesman for Dr. project timeline for the initia- around 18,000 miles an hour, military and civilian applicable to accommodate a larger got to mention that,” he wrote
Soon-Shiong, said in an email. tive by SpaceX, formally called the vehicles potentially could tions world-wide. The Penta- number of passengers, though on Instagram, the Huffington
Mr. Sitrick declined to respond Space Exploration Technolo- blast off, cruise outside the at- gon, for instance, is actively Mr. Musk didn’t elaborate. Post reported.
to specific questions regarding gies Corp. mosphere and then rely on ad- pursuing prototypes for planes “Once you are out of the at- For decades, entrepreneurs,
Cher’s allegations, citing the But his comments at a vanced maneuvers and cut- and weapons that could travel mosphere, you will go as researchers and federal scien-
litigation. prominent venue—coupled ting-edge heat shields to make from the U.S. to prospective smooth as silk” because there tists have unsuccessfully
Mr. Wong denied that he or with a futuristic animation pinpoint landings. Presumably, battlefields in Asia or the Mid- is no turbulence or weather, sought to uncover the secrets
Altor concealed information video depicting rocket planes most of the propulsion, navi- dle East in less than 30 or 40 Mr. Musk said. of reducing temperatures dur-
from Cher or any other share- taking off and landing verti- gation and safety systems minutes. China and Russia also He didn’t discuss potential ing such speedy flights. Mr.
holders. “We did not hide any cally from floating launch- would be derived from ver- are aggressively developing ticket costs during his ad- Musk didn’t delve into that is-
information,” Mr. Wong said in pads—marked the first time sions intended to explore deep and testing their own proto- dress. sue or other technical hurdles
an interview on Saturday. Mr. Musk has publicly talked space. types. After Friday’s session, Mr. that historically have blocked
“There was never a question at length about such possible Hypersonic technology— For travel to Mars, SpaceX’s Musk indicated the cost for a development of hypersonic
of Cher asking for information uses for hypersonic vehicles which encompasses anything vehicle would carry roughly potential hypersonic airliner airliners.
and the company not respond-
ing.” Mr. Middleton also de-
U.S. Hotel Industry Locks Horns With Airbnb

nied the allegations.
Cher’s is the second lawsuit
filed by Altor shareholders
making similar allegations
against Dr. Soon-Shiong and BY CHRIS KIRKHAM A Penn State spokeswoman
Messrs. Middleton and Wong. Lobbying Efforts Hotel industry associations, about $288,000 for a coalition said an investigation con-
A June lawsuit filed by two Al- Airbnb Inc. and the hotel corporations and hotel unions of hotel industry groups, labor cluded he was “in compliance
tor shareholders and former industry have waged a shadow Focus on Initiatives spent at least $2.8 million on state unions and other groups. with university policy.” Mr.
directors alleges that Dr. war in cities and states across In States, Cities government lobbying last year, but Airbnb’s growth has slowed O’Neill said the research was
Soon-Shiong and Messrs. Mid- the U.S. that are grappling industry officials point out the over the last year as some ma- presented at a hospitality aca-
dleton and Wong conspired to with how to regulate the pop- short-term rental issue is just jor markets have tackled short- demic conference this year.
help Dr. Soon-Shiong acquire ular short-term rental market. Airbnb spent at least $1.5 one of many industry priorities. term rentals, and its big spend- The group similarly targeted
Altor at an “egregiously low The stakes are high: Closely million lobbying state govern- Airbnb has also poured sig- ing has had mixed results. In a professor at Florida Interna-
ball” price. In court filings, the held Airbnb has a $31 billion ments across the U.S. including nificant resources into lobbying 2015, the company successfully tional University who was con-
three men have denied the al- valuation, according to people California, Florida and New York cities that are considering new lobbied against a voter initia- sidering a grant from the hotel
legations. familiar with the matter, and last year, up from roughly restrictions. Over the past year tive in San Francisco that association to study safety is-
has more than doubled its $800,000 in 2015, according to in Los Angeles, Airbnb has would have restricted short- sues in short-term rental prop-
world-wide listings over the data from the National Insti- spent nearly $1.9 million on lob- term rentals, outspending oppo- erties. Mike Hampton, dean of
past two years. tute on Money in State Politics. bying there, compared with nents 16 to one. FIU’s hospitality school, said the
Cher’s lawsuit claims The industry stands to lose university decided not to pursue
promising test data market share as Airbnb contin- the study because of disagree-
ues to grow. A Morgan Stan- council expected to begin with “groups, think tanks and city and state government ments about the grant contract,
from Altor BioScience ley report last year found that crafting regulations this fall other credible voices to weigh with professional lobbyists. but he viewed the group’s cam-
was kept from her. nearly half of Airbnb users sur- that could limit the number of in on this issue.” The hotel industry, along paign as “an intimidation pro-
veyed had substituted Airbnb days Airbnb hosts can rent out On its website, Airbnb- with hotel workers’ unions, cess” to “stall or stop the study.”
for a traditional hotel during homes. Mr. Harris-Dawson has Watch advertises itself as a have also funded organizations Scott Peterson, the execu-
their travels in the past year. been impressed with how project of American Family such as Keep Neighborhoods tive director of Checks and Bal-
Dr. Soon-Shiong was named While many hotel execu- Airbnb has organized hosts, Voices, a communications firm First in Los Angeles, as well as ances Project, didn’t respond
Altor’s chairman in April 2016, tives have sought to play down who he said approach him at that wants to “fill gaps in the ShareBetter, which has chap- to requests for comment, but
after his January 2016 pur- the threat, the industry’s lob- events to discuss rental rules. progressive movement.” ters in New York, Los Angeles, his site acknowledges it ac-
chase of stock from Cher and bying group has sharpened its AirbnbWatch is an example of Mike Lux, a former Clinton San Francisco and Washington. cepts funding from Airbnb.
other minority shareholders, attack and developed cam- a hotel industry-funded effort administration staffer who is Airbnb, meanwhile, is help- Airbnb spokesman Nick Pa-
according to court records. paigns with affordable housing that doesn’t look like one. Inter- president of the group, said he ing fund the Checks and Bal- pas said the company has “ab-
The June suit was filed by advocates and other neighbor- nal board meeting documents has often opposed the hotel ances Project, a “public watch- solutely been public” about its
C. Boyden Gray, an ambassa- hood groups. Meanwhile, from the American Hotel & industry on wage and work- dog blog” that has gone after support of Checks and Balances
dor to the European Union un- Airbnb has organized resi- Lodging Association last year say place issues, but “on this par- the industry, particularly when and efforts to “expose secret
der President George W. Bush, dents who show up at hear- the trade group “stood up” Airb- ticular issue, they obviously it funds research about short- relationships between academ-
and Adam Waldman, an attor- ings, where they stress how it nbWatch as a way of “gathering are in alignment.” term rentals. After the site said ics and the big hotel industry.”
ney who has represented Cher provides supplemental income. stories of short-term rental’s Troy Flanagan, vice presi- it would accept funding from He added that the platform’s
in the past in an unrelated “As far as the resources go- harms” and “highlighting dent of state and local govern- Airbnb last fall, the group filed approach is through lobbying
matter. Messrs. Gray and ing toward this issue, I’ve never Airbnb’s lack of transparency.” ment affairs for the American an ethics complaint against and campaign expenditures, as
Waldman introduced Cher and seen anything quite like this,” Another AHLA document Hotel & Lodging Association, John O’Neill, a Penn State pro- opposed to funding pseudo-
other “high net worth inves- said Los Angeles City Council- from August, reviewed by The said its relationships with local fessor who was analyzing data grassroots efforts that can’t be
tors” to Altor, according to an man Marqueece Harris-Dawson. Wall Street Journal, outlines a advocates are “partnerships in on Airbnb hosts and had ac- tracked through public records.
amended complaint filed by Los Angeles is the latest strategy for the next year in- a coalition setting,” while cepted funding from American —Greg Bensinger
the men in July. battleground, with its city tended to create partnerships Airbnb’s approach is to flood Hotel & Lodging Association. contributed to this article.
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B4 | Monday, October 2, 2017 THE WALL STREET JOURNAL.
TECHNOLOGY WSJ.com/Tech
An Upstart Upends Videogame Market

‘Battlegrounds’ proves since the release of “Battle-
grounds” release. On Sept. 12,
a hit, and it isn’t even Epic Games Inc. added a battle
a finished product yet; royale mode to its exploration
game “Fortnite” and men-
Xbox One still to come tioned “Battlegrounds” in its
marketing, prompting criti-
BY SARAH E. NEEDLEMAN cism from Bluehole. Epic and
Bluehole declined to comment.
The hottest videogame right “Battlegrounds” came up
now spends no money on mar- several times in conversations
keting, has raked in hundreds at Goldman Sachs Group Inc.’s
of millions of dollars in sales telecom and media conference
and isn’t fully developed. in New York in September, ac-
“PlayerUnknown’s Battle- cording to Strauss Zelnick,
grounds”—or “PUBG,” as fans chief executive of Take-Two
call it—caught the videogame Interactive Software Inc., pub-
industry off guard this year lishers of the Grand Theft Auto
with its twist on the shooter franchise. Take-Two pays close
genre. Rather than rack up the attention to its rivals, he said.
BLUEHOLE STUDIO
highest kill count, 100 players “Battlegrounds” was the
parachute onto an island with second-most-watched game as
nothing and do whatever it of August this year on Twitch,
takes (hiding included) to be Amazon.com Inc.’s video-
the last one alive. ‘PlayerUnknown’s Battlegrounds’ from Bluehole Studio has raked in millions of dollars in sales without any marketing expenses. streaming service, behind Ten-
It resembles “The Hunger cent Holdings Ltd.’s “League of
Games,” and players are snap- from a constant work in prog- A tentpole game from a big Benchmark Co. analyst Mike pan, a month or two into it we Legends.” That is a strong in-
ping up the $30 game. More ress to the buzziest title of the publisher, meanwhile, often Hickey said. The game’s suc- would’ve seen [player] num- dicator of buying interest, ana-
than 13 million copies have year challenges the conven- takes hundreds of employees cess shows developers don’t bers drop,” said Mr. Greene. lysts say.
sold world-wide since March, tions of how modern block- years to make and can cost need deep pockets to create a For much of his childhood Because “Battlegrounds”
according to its publisher, buster videogames are made. tens of millions of dollars if blockbuster, he said. in Ireland, Mr. Greene lived on was released as an early-ac-
Bluehole Studio Inc., a pri- An early version was cre- not more, plus additional Last year, Bluehole rean army base where his father cess game on Valve Corp.’s
vately held company in South ated in a year for less than $5 spending for marketing. cruited Brendan Greene, an ac- served as an officer. “I did ob- Steam service, players expect
Korea. million by a team of 40 devel- “Battlegrounds,” available claimed “modder” who tinkers stacles courses and played war significant changes and
That puts “Battlegrounds” opers and sold at a discount for personal computers, is to with the open-source code of games with friends,” an inspi- glitches. They haven’t minded:
in a league with blockbusters since March on a site for be launched on Microsoft popular games, to create “Bat- ration for “Battlegrounds,” the On Sept. 16, “Battlegrounds”
such as Electronic Arts Inc.’s “early access” games that Corp.’s Xbox One consoles tlegrounds” despite his lack of 41-year-old said. reached a record 1.3 million
“Star Wars Battlefront” and aren’t polished. The only mar- later this year. Big publishers formal industry experience. He Games where a scrum of concurrent players on Steam,
Activision Blizzard Inc.’s keting came from players on should take heed, industry says “Battlegrounds” is likely players fight to be the lone putting it ahead of established
“Overwatch.” live-streaming sites such as watchers said. Bluehole “effec- here to stay. survivor, a genre known as games such as “Grand Theft
The rise of “Battlegrounds” YouTube. tively disrupted the market,” “If this was a flash in the battle royale, are heating up Auto V.”
MIMS Mark Zuckerberg recently

said his company will do
more to combat illegal and
abusive misuse of the Face-
This move is a good start,
but it excuses Facebook from
its responsibility to be the
primary reviewer of all adver-
post that the majority of ad-
vertising purchased on Face-
book will continue to be
bought “without the adver-
mote.
“Facebook has embraced
the healthy gross margins
and influence of a media firm
sort, filter and ID question-
able content and advertisers,
and their cash flow would de-
cline 10% to 20%.”
Continued from page B1 book platform. The primary tising it is paid to run. tiser ever speaking to anyone but is allergic to the responsi- Of course, mobilizing a
says Yochai Benkler, a profes- mechanism for vetting politi- Why are we, the users, re- at Facebook.” His argument bilities of a media firm,” Mr. massive team of ad monitors
sor at Harvard Law School cal and other ads will be “an sponsible for vetting ads on for this policy: “We don’t Galloway says. could subject Facebook to ex-
and co-director of the Berk- even higher standard of Facebook? check what people say before Mr. Zuckerberg has said it ponentially more accusations
man Klein Center for Internet transparency,” he said, By default, most media they say it, and frankly, I would hire 250 more humans of bias from all sides. For ev-
and Society. achieved by, among other firms vet the ads they run don’t think our society should to review ads and content ery blatant instance of abuse,
“Facebook has become so things, making all ads on the and refuse ones that might be want us to.” posted to Facebook. there are hundreds of cases
central to how people com- site viewable by everyone, offensive or illegal, says Scott This is false equivalence. For Facebook, a company that fall into gray areas.
municate, and it has so much where in the past they could Galloway, entrepreneur, pro- Society might not want Face- with over $14 billion in free The whole situation has
market power, that it’s essen- be seen only by their target fessor of marketing at NYU book to read over everything cash flow in the past year, to Facebook between a rock and
tially immune to market sig- audience. Stern School of Business and typed by our friends and fam- say it is adding 250 people to a hard place. But it needs to
nals,” Dr. Benkler says. The “Beyond pushing back author of “The Four,” a book ily before they share it. But its safety and security efforts do more, or else risk further
only thing that will force the against threats, we will also criticizing the outsize growth many people would feel it’s is “pissing in the ocean,” Mr. damaging its brand and repu-
company to change, he adds, create more services to pro- and influence of Amazon, Ap- reasonable for Facebook to Galloway says. “They could tation, two things of para-
is the brewing threat to its tect our community while en- ple, Facebook and Google. review all of the content it add 25,000 people, spend $1 mount importance to a ser-
reputation. gaging in political discourse,” Mr. Zuckerberg acknowl- gets paid (tens of billions of billion on AI technologies to vice that depends on the trust
Facebook Chief Executive Mr. Zuckerberg wrote. edged in a recent Facebook dollars) to publish and pro- help those 25,000 employees of its users.
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THE WALL STREET JOURNAL. * * Monday, October 2, 2017 | B5
MARKETS REVIEW & OUTLOOK Third Quarter
Third Quarter
Winners & Losers
Frozen concentrated orange juice futures soared
partly because of hurricane-related disruptions, while
PHOTOGRAPHS (CLOCKWISE FROM TOP LEFT): SPENCER PLATT/GETTY IMAGES; JUSTIN SULLIVAN/GETTY IMAGES (2); MARK LENNIHAN/AP
crude oil rose as investors regained faith that the

global oil glut would ease.
Commodity, Stock Currency, Bonds,
traded in U.S.* index vs. U.S. dollar total return
Diesel 22.0%
Bovespa (Brazil) 18.1
Orange juice 14.2
IPSA (Chile) 12.4
Crude oil 12.2
FTSE MIB (Italy) 10.3
Copper 9.5
S&P 500 information technology 8.3
Gasoline 7.1
Hang Seng (Hong Kong) 6.9
S&P 500 energy 6.0
BEL-20 (Belgium) 5.9
Amsterdam AEX 5.9
Nasdaq Composite 5.8
S&P Small Cap 600 5.6
S&P 500 materials 5.6
S&P 500 telecom 5.4
Russell 2000 5.3
Cocoa 5.3
Dow Jones Industrial Average 4.9
Shanghai Composite 4.9
Norwegian krone 4.8
S&P 500 financials 4.8
Brazilian real 4.6
Spain 7-10 year 4.4
Euro Stoxx 4.3
Milk 4.2
DAX (Germany) 4.1
Rates Drive Bank Stocks

CAC-40 (France) 4.1
Canadian dollar 4.0
S&P 500 4.0
Czech koruna 3.9
Chilean peso 3.8
S&P 500 industrials 3.7
S&P financials end stocks rose along with it. Executives at the biggest Gerspach, speaking to ana-
Dow Jones Transports 3.7
After dropping about 5% be- firms have already signaled lysts in September. “It’s not
period at highest level tween early August and early that trading revenue for the that we’re talking about crazy
Swedish krona 3.5
Bulgarian lev 3.5
since crisis but still September, J.P. Morgan Chase third quarter is likely to de- increases in interest rates.”
Gold 3.4
& Co. bounced back by nearly cline from 15% to 20% versus a Yet plans by the Federal Re-
trail broader market 8%. The bank, the biggest in year earlier. serve to begin whittling down Euro 3.4
the U.S. by assets and market And Federal Reserve loan its balance sheet have cast un- Danish krone 3.3
BY TELIS DEMOS value, ended the quarter at a data also point toward soften- certainty over how long-term S&P 500 health care 3.2
AND DAVID REILLY record close of $95.51 a share. ing loan growth, particularly yields will behave. More imme- S&P/TSX Composite (Canada) 3.0
The Trump administration’s in U.S. banks’ commercial and diately, short-term yields have British pound 2.9
Interest rates whipsawed unveiling of a tax-overhaul plan industrial lending, which was risen at a faster pace than S&P Mid Cap 400 2.8
bank stocks in the third quar- near the end of September gave down 0.1% from the beginning long-term ones as the Fed has Swiss Market 2.8
ter and are likely to be the bank stocks an added fillip. of the quarter through Sept. increased its benchmark rate. Soybean 2.8
dominant force for shares The tax “proposal is a tail- 20, according to analysts at That has led to a flattening Hungarian forint 2.5
through the end of the year, wind for the sector,“ said Jason Jefferies. Several analysts also of the yield curve, which can Dow Jones Utility Average 2.4
despite investor optimism Benowitz, senior portfolio noted possible declines due to weigh on bank profits. Banks Russian ruble 2.4
around a tax-code overhaul. manager at Roosevelt Invest- Hurricanes Harvey and Irma. typically generate higher prof- Stoxx Europe 600 2.3
The S&P financials closed ment Group, a New York-based Analysts also aren’t yet giv- its when there is a bigger dif- Chinese yuan 2.1
the quarter at a post-financial- asset manager with $3 billion ing any credit for the tax pro- ference between short-term Sugar 2.1
crisis high, bringing their under advisement. “The bank- posal, even if it holds the rates, which more closely track U.S. High Yield Index 2.0
year-to-date rise to about 11%. ing sector depends on eco- promise of quickly boosting how much it costs for banks to Australian dollar 1.9
But that fell short of the S&P nomic growth, and to the ex- banks’ bottom lines. gather deposits, and long-term Coffee 1.9
500’s gain of 12.5%. tent we get tax reform that “Some difficult special in- rates, which track how much Thai baht 1.8
The performance reflected flows through to better growth, terest battles are ahead, sug- banks earn when they lend out Malaysian ringgit 1.7
that banks stocks, after surg- that supports the stocks.” gesting Congress’s true time- money to home buyers or cor- Nikkei Stock Average (Japan) 1.6
ing in the wake of last Novem- Clarity on tax policy could line for passage is longer than porations.
Rough rice 1.5
ber’s election, have struggled also spur merger activity. “So their currently stated goal of The difference, or spread,
Polish zloty 1.4
at times this year to maintain we could see a pickup in activ- passage by year-end,” wrote between yields on the two-
Singapore dollar 1.4
their momentum. ity that would support the ad- analysts at Morgan Stanley in year and 10-year Treasurys is
U.S. Corporate Index 1.3
In late August and early visory business of the banks,” a note last week. one proxy for this. Wells Fargo
September, for example, bank Mr. Benowitz added. The result is that banks & Co. Chief Executive Tim S&P BSE Sensex (India) 1.2
stocks tumbled. That mirrored Still, bank stocks remain may be even more dependent Sloan told analysts in Septem- Municipal Bond Index 1.1
a drop in the yield of the 10- tethered to interest rates; on what is happening with in- ber that the rate of the bank’s Italy 7-10 year 1.0
year Treasury, which fell to lending and trading conditions terest rates. On that front, growth in the second half of IPC All-Share (Mexico) 1.0
2.04% from 2.39% in July, might also prove short-term bankers expect further, grad- the year will depend in part on FTSE 100 (U.K.) 0.8
amid mounting hurricane con- drags on their performance. ual rises, rather than any “the level and slope of the France 7-10 year 0.8
cerns and rising geopolitical Some analysts have ratch- abrupt upward lurch that yield curve.” Germany 7-10 year 0.8
tensions. eted back their expectations could disrupt markets. Unfortunately for banks, the Silver 0.7
As hurricane damage proved for banks’ growth over the “Any sort of planning spread remains low; it was un- S&P 500 consumer discretionary 0.5
to be less than the most dire rest of the year. Nomura Insti- starts with the environment der 1 percentage point U.S. 7-10 year 0.4
projections, the yield reversed net said last week that it low- and…the key word is mea- throughout the third quarter, Kuwaiti dinar 0.4
course and climbed to 2.33% by ered its third-quarter forecasts sured,” said Citigroup Inc. although it did tick up a bit to- New Taiwan dollar 0.3
the end of the month. Bank for big banks. Chief Financial Officer John ward the end of September. Italy 1-3 year 0.3
Japan 7-10 year 0.2
Dollar Breaks Its Losing Streak

U.S. 1-3 year 0.2
Australia 1-3 year 0.2
Sri Lankan rupee 0.2
Kospi Composite (South Korea) 0.1
S&P 500 real estate 0.1
BY CHELSEY DULANEY both the Japanese yen and euro “We’re tightening faster than Republicans have released Germany 1-3 year 0.1
by year-end. other places.” their plans for a sweeping tax
France 1-3 year 0.1
After a bruising year, the “We’ve seen a big shift in At the same time, central overhaul, helping to revive
Japan 1-3 year 0.0
strong-dollar trade is staging a momentum,” said Brad Bechtel, bankers in Europe and Canada hopes that the Trump adminis-
South Korean won 0.0
comeback heading into the final a managing director in foreign- have grown more cautious on tration will enact an agenda
Vietnamese dong 0.0
stretch of 2017. exchange trading at Jefferies the prospect for tightening pol- that could boost U.S. growth
The dollar edged up about Group. icy at home as stronger curren- and accelerate U.S. interest-rate –0.1 Japanese yen
0.7% against a basket of major One factor boosting the dol- cies begin to weigh on their increases. –0.2 U.K. 1-3 year
peers tracked by The Wall lar: Federal Reserve officials economies. While a strong cur- Some analysts say any re- –0.2 FTSE Straits Times (Singapore)
Street Journal in September, have signaled they will continue rency often reflects confidence bound in the dollar will be –0.2 Cotton
snapping a six-month losing to tighten monetary policy, eas- in the economy, it also can short-lived. Hedge funds and –0.3 Soybean oil
streak that had been the cur- ing worries among investors damp inflation and growth other speculative investors are –0.4 U.K. 7-10 year
rency’s longest in a decade. The that weak inflation would pre- prospects by making imports holding a net $17.9 billion in –0.5 Pakistani rupee
currency’s dramatic slide this vent the central bank from rais- cheaper and exports more ex- bets against the dollar, the high- –0.6 IBEX 35 (Spain)
year—driven by investor con- pensive. est level in five years, according –0.6 Taiwan Weighted
cerns about the U.S. economic Bank of Canada Gov. Stephen to data from the Commodity Fu- –0.7 Mexican peso
0.7%
and political outlook—con- Poloz said in a Sept. 27 speech tures Trading Commission. –0.7 S&P/ASX 200 (Australia)
founded a broad consensus that that “monetary policy will be “The big picture is that the –0.7 Australia 7-10 year
the dollar would strengthen particularly data-dependent in dollar rally has still topped out,” –0.7 Peruvian nuevo sol
heading into 2017. these circumstances and, as al- said Mr. Katzive, who expects –0.9 Platinum
Now, signs that the Federal The dollar’s gain in September ways, we could still be sur- the dollar to resume its slide –0.9 Live cattle
Reserve will maintain a steady against basket of currencies prised in either direction.” next year. “Once we get closer –0.9 Natural gas
pace of U.S. interest-rate in- European Central Bank Presi- to the end of the year, it will be –1.0 Philippine peso
creases, along with Republicans dent Mario Draghi also has time to think about the down- –1.0 Swiss franc
introducing plans for a tax over- struck a more cautious tone sides for the dollar.” –1.0 Indian rupee
haul, are leading investors to re- ing rates. lately, saying in a recent speech Chris Gaffney, president of –1.1 Tel Aviv 25 (Israel)
evaluate bets built up against At the close of its September that “volatility in the exchange EverBank World Markets, said
–1.2 Turkish lira
the dollar in recent months. meeting, the Fed penciled in rate represents a source of un- the currency faces several
–1.2 Indonesian rupiah
“It was really hard to justify one more rate raise for 2017 certainty.” An unexpectedly threats. Continued weak U.S. in-
–1.7 New Zealand dollar
the speed with which the dollar and three for next year. Markets weak showing for German flation could stymie the Fed’s
–1.9 Ukrainian hryvnia
had weakened this year,” said now forecast a 78% chance of Chancellor Angela Merkel’s con- plans for raising rates, while
Daniel Katzive, head of foreign- another U.S. rate increase this servative alliance in Septem- tensions between the U.S. and –2.0 S&P 500 consumer staples
exchange strategy for North year, up from about 34% a ber’s election has added to pres- North Korea could favor curren- –2.6 Uruguayan peso
America at BNP Paribas. month ago, according to CME sure on the euro. cies such as the Japanese yen –3.3 South African rand
Even with September’s re- Group data. The euro lost 0.8% against and Swiss franc over the dollar. –4.0 Icelandic krona
covery, the dollar remains down Expectations that rates will the dollar in September, though –4.0 Argentinian peso
Corn
7.1% for the year and on Friday rise typically support the value it remains up about 12% for the NEXT WEEK –4.1
Kazakh tenge
notched its third consecutive of the dollar by making U.S. as- year. The Canadian dollar has –5.4
quarter of declines. Yet the re- sets more attractive to yield- fallen 2.5% since hitting a two- The Investing in –12.3 Wheat
cent rebound gives some inves-
tors hope for a resurgence. BNP
is forecasting that the dollar
seeking investors.
“We’re back in the mode
where the U.S. is going to go
year high in early September.
The U.S. political landscape
also has recently turned more
WSJ
.COM
Funds & ETFs
quarterly report
will be published
–28.4
*Continuous most-active contract
Lean hogs
Sources: FactSet (indexes, commodities); Tullett

will gain more than 2% against outperform,” Mr. Bechtel said. supportive for the dollar. on Oct. 9. Prebon (currencies); Bloomberg Barclays (bonds) THE WALL STREET JOURNAL.
MARKETS REVIEW & OUTLOOK | THIRD QUARTER
Bitcoin Sets Record in a Wild Quarter

Digital currency thusiasm, as did growth in in- value of $177 billion during
$5,000
at the time. The record lasted
vestor interest in Japan and the quarter, according to web- Another Crazy Ride for less than a month. Another
finishes up near 70% South Korea. But new restric- site coinmarketcap, driven by Bitcoin price startup called Filecoin raised
during quarter while tions on bitcoin trading in the almost manic boom in the
4,500
$257 million in August.
China drove prices down in new-age crowdfunding vehi- The most chaotic develop-
coin offerings boomed September. cles called initial coin offer- ments, though, came out of
Trading was lively not just ings, or ICOs. China. On Sept. 4, China de-
BY PAUL VIGNA for the original cryptocurrency For the crypto sector in to- 4,000 clared that coin offerings were
but for hundreds of smaller tal, there were more than 105 illegal and ordered them to
Bitcoin more than doubled tokens as well. offerings that closed in the “cease immediately.”
in price, then plunged by one- The early-September highs quarter, raising a record $1.32 3,500 Chinese businesses had
third in what was a hectic marked the turning point. billion, according to research raised about $400 million via
three-month period even by While bitcoin trades 24 hours firm Token Report. Ethereum, coin offerings in the first half
the virtual currency’s Wild a day, seven days a week, The the second largest digital cur- 3,000 of the year, and the move basi-
West standards. Wall Street Journal’s market- rency by total dollar value, cally shut down the burgeon-
Bitcoin surged to an intra- data group also measures a and the basis for many of the ing business overnight. The
day record of $5,014 on Sept. once-a-day closing price week- initial coin offerings, ended 2,500 country went a step further.
2, about twice the price days at 5 p.m. Eastern time. Friday at $294, up 3.1% for the Without formally announcing
on July 1 and 158% above its By that count, bitcoin peaked quarter after surging more it, the government essentially
intraday low for the quarter, on Sept. 2 at $5,014. Bitcoin than 30-fold during the first shut down digital-currency ex-
2,000
set July 16, according to news traded as low as $1,837 on half of the year. changes in the nation, a huge
and research site CoinDesk. Sunday, July 16, before closing The coin-offering phenome- July August September blow for bitcoin in once vi-
Sept. 2, a Saturday, also the next day at $1,939. non has created vast wealth Source: CoinDesk THE WALL STREET JOURNAL. brant Chinese markets.
marked the top of a furi- In all, the virtual currency for hundreds of startups, While China was trying to
ous yearlong rally, as bitcoin spanned a range of $3,100 in many of which don’t even have could be classified as securi- with defrauding investors in a slow down the bandwagon, ce-
would then slide more than less than two months, a vola- working products. It also has ties under existing law. pair of small coin offerings lebrities were jumping on it.
$2,000 before finishing Fri- tile quarter that followed a produced its share of risky in- To date, the SEC hasn’t purportedly tied to real estate First, boxer Floyd Mayweather
day at $4,182, up 67% over the calmer period in 2016. vestments and outright scams. brought a major enforcement and diamonds. promoted two coin offerings
three-month period. The entire cryptocurrency That combination of prom- action, but the July report was Still, some of the largest of- through his social media ac-
During the quarter, new market—a burgeoning cluster ise and peril compelled the widely seen as putting the in- ferings to date were conducted counts. Socialite Paris Hilton
crowdfunding vehicles backed of more than 1,000 digital cur- U.S. Securities and Exchange dustry on notice. On Friday, during the quarter. In July, a did the same. Oscar-winning
by bitcoin and the newer rencies and token-like “alt- Commission to declare July the agency charged a busi- startup named Tezos raised actor Jamie Foxx added his
Ethereum currency drove en- coins”—rose to a total market 25 that some coin offerings nessman and two companies $232 million, a record amount name to yet another.
Strong Demand Drives Oil Prices to Bounce Back

BY ALISON SIDER the southern U.S. would crimp ing costs, slowing oil-field ac- figures show U.S. output has
Oil’s Comeback AND AMRITH RAMKUMAR consumption. The Interna- tivity. That boosted sentiment increased but hasn’t been as
Strong demand and signs of slowing U.S. production helped oil prices tional Energy Agency raised for oil investors, who had ear- high recently as preliminary
rebound in the third quarter. Oil investors got a reprieve its forecast for demand lier feared output from shale weekly data had indicated.
from falling oil prices in the growth for next year. At the producers would cancel out Some remain skeptical the
Nymex crude-oil price*
Aug. 25 third quarter, thanks to unex- end of March, global fuel de- the impact of cuts by members rebound in oil prices will con-
$52 a barrel Hurricane Harvey pectedly strong demand for mand was just 1.3% higher of the Organization of the Pe- tinue. The rig count could be-
makes landfall. crude and signs of ebbing U.S. than the previous year, ac- troleum Exporting Countries gin to rise again if prices stay
production. cording to J.P. Morgan Asset and other producers. above $50, analysts said.
50 West Texas Intermediate, Management. The number of rigs drilling One reason is producers are
the U.S. crude benchmark, By the end of July, demand oil wells in the U.S. fell by six looking to take advantage of
ended the quarter 12.2% grew by 3.2% from the previ- during the quarter, compared the recent rally to lock in
48 higher, snapping a two-quarter ous year—the biggest year- with an increase of 94 rigs higher prices, analysts said.
losing streak and marking the over-year increase since 2010. during the second quarter. Beyond that, OPEC’s compli-
biggest quarterly gain since “Everyone was concerned “The entire first quarter ance with its deal has been
46 the second quarter of 2016. that global demand for oil was and into the second, shale was high in recent months, and the
Sept. 25 U.S. crude futures re-entered a weakening. As we’ve moved the dominant factor,” said group has discussed extending
Oil prices enter
bull market.
bull market in September and through the year, it’s actually Ebele Kemery, head of energy its production cuts further
44 are up nearly 21.5% from the strengthening again,” said Rob investing at J.P. Morgan Asset into 2018. But the cartel has
lows in June. A gain of 20% or Thummel, managing director Management. Now, “we’ve yet to commit to such a move.
more signals the start of a bull at Tortoise Capital Advisors. seen the trajectory of U.S. “I don’t think we’re on
42 market. There also were signs U.S. shale production growth some fast track” to higher
July August September Demand was a bright spot, output hasn’t increased as slow.” prices, said John Saucer, vice
*Leading contract even amid worries that dam- quickly as some expected, as The U.S. Energy Informa- president of research and
Source: WSJ Market Data Group THE WALL STREET JOURNAL. age from major hurricanes in producers contended with ris- tion Administration’s monthly analysis at Mobius Risk Group.
U.S. Bond Yields Increase as

Inflation Shows Signs of Life
BY DANIEL KRUGER
Edging Higher
Bond investors are starting The yield on the 10-year Treasury note posted its first quarterly
to believe in inflation again. gain of 2017, while the two-year yield continued to climb.
The yield on the benchmark
Nov. 8 Yield on 10-year Treasury note
10-year U.S. Treasury note set-
ELECTION 2.33%
tled at 2.328% Friday and 2.50%
posted its first quarterly gain ▲0.03 pt.
of the year, buoyed by an up-
2.25
tick in consumer prices that
lent support to some policy
makers’ insistence that infla- 2.00 ▲0.13 percentage ▲0.84 pt. ▼0.03 pt. ▼0.12 pt.
tion will soon make a long-an- point in 3Q ’16
ticipated return to the central Two-year yield
bank’s 2% target. 1.75
1.48%
Yields soared into the end
▲0.09 pt.
of 2016 as investors bet that 1.50
Trump administration policies
would spark a surge of growth
and inflation. The reflation 1.25
trade petered out, however, af-
ter inflation remained tepid
1.00 ▲0.18 pt. ▲0.43 pt. ▲0.09 pt. ▲0.10 pt.
and the administration’s legis-
lative agenda stalled, with the
10-year yield posting declines 0.75 YIELDS RISE AS BOND PRICES FALL
S&P DJI can factor in more in each of this year’s prior

quarters.
Now, investors are begin- 0.50
ning to revive some postelec- 3Q 2016 4Q 1Q ’17 2Q 3Q
tion wagers. A rebound in con- Source: Ryan ALM THE WALL STREET JOURNAL.
sumer prices and the prospect
of tax cuts spurred bond sell- of tax overhaul, or other ele- ties and making imports more
ing in recent weeks, with the ments of the Trump adminis- expensive. Inflation is one of
10-year yield falling just twice tration’s agenda, several said the biggest threats to the
Fine-tune your portfolio in the past 15 sessions. they are starting to anticipate value of long-term government
“It’s a hopeful sign of better more stimulative fiscal policy. bonds because it erodes the
by combining factor indices things to come for the econ- The Fed’s persistent advo- purchasing power of their
that enhance returns and omy,” said Thomas Roth, man- cacy for a brisk pace of rate in- fixed payments.
aging director in the rates creases has helped drive up Yields in the government-
manage risk. S&P DJI provides trading group at MUFG Securi- yields on two-year Treasurys, bond market indicate that in-
tools so you can dial your ties Americas Inc. which are more reactive to ex- vestors are now forecasting in-
exposures up or down and The 10-year government pectations for Fed policy, to flation will average 1.8%
yield has spent the past six their highest level since No- during the next five years, ap-
mix factors with systematic months locked in a range near vember 2008, before the nadir proaching the 2% level reached
precision. Set your own levels 2.25% as the economy has of the financial crisis. And as in the wake of the election.
maintained a slow and steady the Fed has raised rates, it also Some analysts suggest that
and factor in more. pace and as consumer prices has succeeded in boosting in- the Republican tax proposal
showed few signs of gathering flation expectations, even as could present investors with
momentum. In September, it the failure of higher prices to an opportunity to revisit the
indexology® hit its lowest close since the
election, 2.061%, as investors
materialize remains, in Fed
Chairwoman Janet Yellen’s
reflation trade. But the diffi-
culty policy makers have had
syncs up factors sought the safety of govern- words, a “mystery.” in producing gains in wages
ment debt as tension escalated Fed-funds futures, which in- and prices, even as the unem-
spdji.com/indexology between the U.S. and North vestors use to bet on central- ployment rate has fallen to
Korea and investors worried bank policy, late Friday 4.4%—below the level at which
about recent hurricanes. showed the chances that the the Fed expects it to produce
The yield rebounded later in Fed will boost rates for a third inflation—makes some inves-
the month, however, after the time this year at 78%, up from tors skeptical.
© S&P Dow Jones Indices LLC, a division of S&P Global 2017. All rights reserved. S&P ® and Indexology ® are Fed’s decision to push ahead 34% a month ago, according to “Even if you get decent
registered trademarks of Standard & Poor’s Financial Services LLC. Dow Jones® is a registered trademark of with an aggressive schedule the CME Group. growth, the assumption that it
Dow Jones Trademark Holdings LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices for rate increases, penciling in Those expectations were will lead to inflation is some-
receives compensation for licensing its indices to third parties. S&P Dow Jones Indices LLC does not make one more this year and three key to the climb in yields, as thing that you have to ques-
investment recommendations and does not endorse, sponsor, promote or sell any investment product or fund. for 2018. And while some ana- prices for oil stabilized and the tion now,” said Krishna Me-
lysts still harbor doubts about dollar continued its slide, mani, chief investment officer
the prospects for the passage boosting prices for commodi- at OppenheimerFunds Inc.
MARKETS REVIEW & OUTLOOK | THIRD QUARTER
Most Sectors Share in Broad Rally

Technology in the third quarter preserved its place as the stock market's best-performing sector in 2017.
Energy stocks, still down this year, staged a rebound as oil prices stabilized. Of 11 sectors, only consumer
staples declined for the quarter.
30%
Technology
Performance, year to date
20
Health care
Materials
S&P 500
Industrials
10 Financials
Consumer discretionary
Utilities
Real estate
Consumer staples
0
Telecom
–10 Energy
–20
January February March April May June July August September
Third-quarter performance Technology Energy Materials Telecom Financials

Technology shares continued to top A drumbeat of positive oil data in Specialty chemical company The tiny telecom sector seesawed Financial stocks tracked
Technology 8.3% the market. Even after brief hiccups September helped U.S. crude return Albemarle Corp. was the top but the two big names in the group, bond-market yields, suffering in
Energy 6.0 in September, shares of microchip to bull-market territory and lifted performer in one of the market’s Verizon Communications Inc. and August and rising in September.
Materials 5.5 companies fared best. many stocks in the sector. smallest groups. AT&T Inc., ended in the green. T. Rowe Price Group led the pack.
Telecom 5.4
Financials 4.8 8% 8% 8% 8% 8%
S&P 500 4.0
Industrials 3.7 4 4 4 4 4
Health care 3.2
0 0 0 0 0
Utilities 2.0
Consumer disc. 0.5 –4 –4 –4 –4 –4
Real estate 0.1
J A S J A S J A S J A S J A S
Consumer staples -2.0
Industrials Health care Utilities Consumer discretionary Real estate Consumer Staples
Boeing Co. led the sector, and a Strong gains in biotech lent a boost, A jump in rates in September ate The sector ended up slightly. But Shares trended higher for much It was a rough quarter for these
takeover deal for airplane-parts maker though the group faded into quarter- into gains as utilities' dividends can that result masked some big movers of the summer, but a September companies, especially food-products
Rockwell Collins Inc. boosted the group. end as big stocks including Regeneron look less attractive when rates rise. in retail, such as Gap Inc., up 34%, jump in bond yields left the makers. J.M. Smucker Co. and Campbell
Pharmaceuticals Inc. stumbled. and Foot Locker Inc., down 29%. rate-sensitive sector flat. Soup Co. each lost more than 10%.
8% 8% 8% 8% 8% 8%
4 4 4 4 4 4
0 0 0 0 0 0
–4 –4 –4 –4 –4 –4
J A S J A S J A S J A S J A S J A S
Source: FactSet Reporting by Chris Dieterich, Ben Eisen and Erik Holm; Graphic by Peter Santilli/THE WALL STREET JOURNAL.
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MARKETS REVIEW & OUTLOOK: THIRD QUARTER MARKETS DIGEST

Scoreboard of Wall Street Underwriting: How the 30 Dow Jones Industrials Performed Country-by-Country Derby
Percentage change in the third-quarter and year-to-date Third-quarter stock-market performance, based on the S&P Global BMI
First Nine Months 3rd-qtr Percent Chg 3rd-qtr Percent Chg (Broad Market Index) in U.S.-dollar and local-currency terms ranked by
Quarterly Volume of New Global Stocks and Bonds, in billions Company close 3rd-qtr YTD Company close 3rd-qtr YTD U.S.-dollar performance
254.21 28.55 63.3 Local Local
Stocks Bonds Boeing J.P. Morgan Chase 95.51 4.50 10.7
Country U.S. dollar currency Country U.S. dollar currency
$2,050 Caterpillar 124.71 16.05 34.5 Procter & Gamble 90.98 4.39 8.2
Intel 38.08 12.86 5.0 Wal-Mart Stores 78.14 3.25 13.0 Brazil 23.2% 17.6% Hong Kong 4.2% 4.3%
Chevron 117.50 12.62 –0.2 McDonald's 156.68 2.30 28.7 Kazakhstan 19.9 26.7 U.S. 4.1 4.1
1,640 Visa 105.24 12.22 34.9 Exxon Mobil 81.98 1.55 –9.2 Chile 16.9 12.4 Slovenia 3.9 0.2
Verizon 49.49 10.82 –7.3 3M 209.90 0.82 17.5 Norway 16.9 11.3 Japan 3.7 3.9
DowDuPont 69.23 9.77 21.0 Coca-Cola 45.01 0.36 8.6 Argentina 16.3 21.6 Latvia 3.6 –0.1
1,230 Cyprus 14.9 10.9 Spain 3.5 –0.2
Microsoft 74.49 8.07 19.9 Merck 64.03 -0.09 8.8
Cisco Systems 33.63 7.44 11.3 Johnson & Johnson 130.01 -1.72 12.8 Russia 14.8 12.1 Finland 3.2 –0.4
American Express 90.46 7.38 22.1 Travelers 122.52 -3.17 0.1 Peru 13.6 13.7 Philippines 3.0 3.7
820
Apple 154.12 7.01 33.1 United Technologies 116.08 -4.94 5.9 Italy 13.6 9.6 India 3.0 4.1
Goldman Sachs 237.19 6.89 –0.9 IBM 145.08 -5.69 –12.6 Kuwait 13.6 12.9 Bulgaria 3.0 –0.7
410 Home Depot 163.56 6.62 22.0 Walt Disney 98.57 -7.23 –5.4 China 13.1 13.1 Morocco 2.9 0.6
Pfizer 35.70 6.28 9.9 General Electric 24.18 -10.48 –23.5 Estonia 11.7 7.8 UAE 2.6 2.6
Unitedhealth Group 195.85 5.63 22.4 Nike 51.85 -12.12 2.0 Czech Republic 11.7 7.2 South Africa 2.5 5.6
0 Lithuania 11.5 7.6 Romania 2.3 –0.4
2012 2013 2014 2015 2016 2017
Source: Dealogic
Source: WSJ Market Data Group Austria 10.8 6.9 Oman 2.2 2.2
Portugal 10.5 6.6 Australia 2.1 –0.2
Top Underwriters of Stocks and Bonds, Globally Hungary 9.7 6.3 Switzerland 2.0 3.0
In the U.S. public, Rule 144a, domestic and international equity and Euro mar-
kets, ranked by first nine months 2017 proceeds.
Biggest Percentage Gainers… Netherlands 9.1 5.3 Singapore 2.0 0.7
Germany 8.9 5.0 Tunisia 1.8 3.1
First 9 Months 2017 First 9 Months 2016 3rd Quarter 52-Week
Company Symbol Close Net chg % chg Low Close(l) High % chg Belgium 8.7 4.9 Malaysia 1.4 –0.3
Proceeds Market No. of Proceeds Market
($billions) share (%) Issues ($billions) share (%) Rank
Thailand 8.6 6.6 South Korea 1.1 1.2
Veritone VERI 45.45 33.74 288.1 7.76 l 74.92 ... 4.3 2.3
France 8.1 New Zealand 1.0
Citi 416.8 7.0 2,037 359.5 6.1 2 MyoKardia MYOK 42.85 29.75 227.1 10.55 l 49.55 162.2 Poland 8.0 6.1 Mexico 0.4 0.7
J.P. Morgan 396.7 6.7 1,965 408.9 6.9 1 Akcea Therapeutics AKCA 27.67 18.19 191.9 8.10 l 31.23 ... Denmark 8.0 4.2 Turkey –0.1 0.9
BofA-Merrill Lynch 384.5 6.5 1,633 337.2 5.7 3 XOMA XOMA 19.65 12.66 181.1 3.96 l 22.69 114.1
Bangladesh 7.8 9.8 Taiwan –0.3 –0.6
Goldman Sachs 305.6 5.2 1,377 278.7 4.7 5 Zogenix ZGNX 35.05 20.55 141.7 7.50 l 37.55 206.6
Slovakia 7.7 3.9 Lebanon –0.5 –0.3
Morgan Stanley 281.7 4.7 1,619 249.2 4.2 6 BGNE 103.46 58.46 129.9 26.43 l 103.80
235.8
BeiGene ADR Canada 7.1 3.1 Croatia –0.7 –3.1
Barclays 263.9 4.4 1,204 294.1 5.0 4 Voyager Therapeutics VYGR 20.59 11.63 129.8 8.10 l 22.28 71.4 1.9 –0.1
Colombia 6.0 Indonesia –1.1
Deutsche Bank 222.2 3.7 1,072 236.7 4.0 7 Phoenix New Media ADR FENG 5.89 3.26 124.0 2.43 l 6.73 51.0 Kenya 5.9 5.5 Bahrain –1.8 –1.8
HSBC 217.7 3.7 1,043 231.6 3.9 8 Hailiang Educ Group ADR HLG 19.49 10.61 119.5 7.02 l 21.00 128.0 Ireland 5.6 1.8 Nigeria –3.5 10.1
Wells Fargo Sec 181.5 3.1 1,287 201.6 3.4 9 ION Geophysical IO 9.51 5.16 118.6 3.20 l 9.85 38.8 Luxembourg 5.4 1.7 Jordan –3.8 –3.9
BNP Paribas 166.8 2.8 714 143.7 2.4 11 Mauritius 5.3 4.1 Sri Lanka –5.4 –5.7
Calyxt CLXT 24.49 13.24 117.7 9.26 l 29.45 ...
Top 10 Totals 2,837.4 47.8 8,108 2,741.0 46.2 Verastem VSTM 4.70 2.52 115.6 1.05 l 5.71 253.4 Ukraine 5.2 7.4 Qatar –6.9 –7.4
Industry Total 5,938.6 100.0 21,236 5,936.2 100.0 Celadon Group CGI 6.75 3.60 114.3 1.30 l 9.75 –22.8 Sweden 5.1 1.7 Israel –8.0 –7.3
AcelRx Pharmaceuticals ACRX 4.60 2.45 114.0 1.95 l 4.70 18.3 Vietnam 4.9 4.9 Greece –8.4 –11.6
Global Initial Public Offerings Fees1 From Stocks and Bonds Skyline Corp SKY 12.09 6.07 100.8 5.07 l 17.35 –11.7 Egypt 4.7 2.1 Pakistan –11.6 –11.2
Underwriters of global IPOs by global Top underwriters for global stocks U.K. 4.5 1.2
issuers, first nine months. and bonds, first nine months. Source: S&P Dow Jones Indices
Amount Mkt Share (%) ($Millions)
Biggest Percentage Losers
Manager ($millions) 2017 2016 Manager 2017 2016 3rd Quarter 52-Week
Citi 7,933.3 6.1 4.7 J.P. Morgan 2,326.3 2,015.8
Company Symbol Close Net chg % chg Low Close(l) High % chg Market Boxscores
J.P. Morgan 7,818.6 6.0 6.1 Citi 1,935.6 1,403.0 Diana Containerships DCIX 0.62 –330.22 –99.8 0.61 l 23081.94 –100.0 How the major indexes performed
Credit Suisse 7,099.0 5.5 2.5 BofA-Merrill Lynch 1,882.4 1,658.0 Versartis Inc. VSAR 2.45 –15.00 –86.0 2.35 l 24.00 –80.0 Close % chg from
Morgan Stanley 6,560.4 5.1 5.8 Morgan Stanley 1,822.0 1,387.5 Otonomy OTIC 3.25 –15.60 –82.8 3.15 l 21.15 –82.1 Third-quarter performance 9/29/17 9/29/16
Deutsche Bank 5,071.6 3.9 4.5 Goldman Sachs 1,714.1 1,409.6 BioAmber BIOA 0.49 –2.08 –80.9 0.32 l 6.50 –88.4 Dow Jones Industrial Average 4.9% 22405.09 22.4
Goldman Sachs 4,759.0 3.7 4.7 Barclays 1,245.0 1,046.7 Genocea Biosciences GNCA 1.46 –3.76 –72.0 1.13 l 7.29 –71.5 DJ U.S. Total Stock Market 4.1 26148.54 16.4
UBS 4,160.5 3.2 2.7 Credit Suisse 1,193.1 944.9 Roka Bioscience ROKA 0.73 –1.85 –71.7 0.67 l 8.50 –89.5 DJ World (excl. U.S.) 5.4 254.05 16.5
BofA-Merrill Lynch 3,616.5 2.8 3.4 Deutsche Bank 1,085.4 1,051.2 Babcock & Wilcox Ents BW 3.33 –8.43 –71.7 1.61 l 17.72 –79.8
823.8 785.5 Nasdaq Composite 5.8 6495.96 22.3
Barclays 2,496.1 1.9 1.7 Wells Fargo Sec Axovant Sciences AXON 6.88 –16.31 –70.3 6.13 l 27.98 –50.9
GF Securities Co Ltd 2,237.3 1.7 0.9 HSBC 731.9 690.6 Russell 2000 5.3 1490.86 19.1
Forward Pharma ADR FWP 6.07 –14.26 –70.1 5.20 l 33.00 –71.1
S&P 500 4.0 2519.36 16.2
Top 10 Totals 51,752.2 39.8 37.0 Top 10 Totals 14,759.5 12,392.9 RAIT Finl Tr RAS 0.73 –1.46 –66.7 0.52 l 3.91 –78.4
NYSE Composite 3.8 12209.15 13.9
Industry Total 129,891.7 100.0 100.0 Industry Total 30,881.4 27,381.6 Radisys RSYS 1.37 –2.39 –63.6 1.36 l 5.73 –74.4
NYSE MKT Composite 3.3 2639.29 8.4
Black Box BBOX 3.25 –5.30 –62.0 2.85 l 17.05 –76.6
Value Line (Geometric) 3.2 539.31 11.5
Syndicated Loans Investment-Grade Bonds2 Cherokee CHKE 2.75 –4.20 –60.4 2.75 l 11.87 –73.3
Largest lead arrangers of syndicated Corporate investment-grade debt in CPI Card Group PMTS 1.18 –1.67 –58.6 0.86 l 6.41 –80.5 Sources: WSJ Market Data Group; S&P Dow Jones Indices
loans in the U.S., first nine months. U.S. markets, first nine months. Tintri TNTR 3.14 –4.13 –56.8 2.85 l 7.75 ...
Amount Mkt Share (%) Amount Mkt Share (%)
Manager ($billions) 2017 2016 Manager ($billions) 2017 2016
Most Active Stocks Largest Announced Mergers
BofA-Merrill Lynch 268.41 14.8 16.4 BofA-Merrill Lynch 137.30 12.0 10.6 Most heavily traded issues in Third quarter of 2017; composite volume, World-wide mergers and acquisitions, excluding debt.
J.P. Morgan 239.05 13.2 16.1 J.P. Morgan 133.87 11.7 12.0
in millions Deal
Citi 156.61 8.6 9.0 Citi 117.37 10.3 10.0 Date Value*
Acquirer Target Announced ($ billions)
Wells Fargo Sec 150.33 8.3 9.4 Goldman Sachs 98.06 8.6 7.8 3rd Quarter 52-Week
Company Symbol Volume Close Net chg % chg High Low % chg
Barclays 94.07 5.2 4.4 Morgan Stanley 95.96 8.4 7.1 United Technologies (USA) Rockwell Collins (USA) Sept. 4 22.88
Goldman Sachs 87.33 4.8 2.9 Wells Fargo Sec 67.82 5.9 7.0 Bank of America BAC 4,218 25.34 1.08 4.5 25.80 15.17 61.9 Bain Capital, SK Hynix, Hoya
SPDR S&P 500 SPY 3,882 251.23 9.43 3.9 251.32 208.38 16.1 Toshiba Memory (Japan) Sept. 20 17.91
Credit Suisse 69.99 3.9 3.3 Barclays 56.93 5.0 5.8 (USA)
Deutsche Bank 67.34 3.7 4.2 Deutsche Bank 46.45 4.1 4.5 Finl Select Sector SPDR XLF 3,368 25.86 1.19 4.8 25.86 19.11 34.0 Gilead Sciences (USA) Kite Pharma (USA) Aug. 28 11.86
Morgan Stanley 65.57 3.6 2.3 HSBC 41.17 3.6 5.0 iSharesMSCIEmgMarkets EEM 3,067 44.81 3.42 8.3 45.96 33.94 19.7 Discovery Communications Scripps Networks Interactive
July 31 11.83
VanEckVectorsGoldMiner GDX 2,706 22.96 0.88 4.0 27.25 18.58 –13.1 (USA) (USA)
RBC Capital Markets 55.59 3.1 2.5 Credit Suisse 35.46 3.1 3.1
General Electric GE 2,466 24.18 –2.83 –10.5 32.38 23.58 –18.4 Consortium of Chinese acquirers Global Logistic Properties
Top 10 Totals 1,254.30 69.1 70.7 Top 10 Totals 830.39 72.6 72.9 July 14 11.56
(China) (Singapore)
Ford Motor F 2,139 11.97 0.78 7.0 13.27 10.47 –0.8
Industry Total 1,814.51 100.0 100.0 Industry Total 1,144.25 100.0 100.0 China United Network
Chesapeake Energy CHK 1,992 4.30 –0.67 –13.5 8.20 3.55 –31.4 China Unicom (Hong Kong) (22%) Aug. 22 11.25
Communications (China)
Rite Aid RAD 1,853 1.96 –0.99 –33.6 8.77 1.93 –74.5 Vantiv (USA) Worldpay Group (UK) July 5 9.96
High-Yield Bonds Ranking by Revenue Micron Technology MU 1,835 39.33 9.47 31.7 39.36 16.17 121.2 Fortum (Finland) Uniper (Germany) Sept. 20 9.64
Top underwriters of corporate high- Includes fees from stock, bond and Vale ADR VALE 1,834 10.07 1.32 15.1 11.72 5.39 83.1 Sempra Energy (USA) Energy Future Holdings (USA) Aug. 21 9.45
yield debt in U.S. markets, first nine loan underwriting, merger-and-acqui- Snap SNAP 1,794 14.54 –3.23 –18.2 29.44 11.28 ... Siemens mobility business
months. sitions advice, first nine months Alstom (France) Sept. 26 8.70
Apple AAPL 1,763 154.12 10.10 7.0 164.94 104.08 36.3 (Germany)
Amount Mkt Share (%) Amount Mkt Share (%) iPath S&P 500 VIX ST Fut VXX 1,575 39.19 –11.85 –23.2 153.48 39.10 –71.2 Northrop Grumman (USA) Orbital ATK (USA) Sept. 18 8.03
Manager ($billions) 2017 2016 Manager ($billions) 2017 2016
AT&T T 1,537 39.17 1.44 3.8 43.03 35.10 –3.5 Crown Castle International
LTS Group Holdings (USA) July 18 7.10
J.P. Morgan 22.11 11.2 9.5 J.P. Morgan 4.91 8.2 8.0 ProSharesUltVIXST UVXY 1,526 20.60 –18.36 –47.1 416.80 20.50 –93.8 (USA)
BofA-Merrill Lynch 18.45 9.4 9.5 Goldman Sachs 4.22 7.1 6.6 iShares Russell 2000 ETF IWM 1,385 148.18 7.26 5.2 148.43 114.88 19.3 13 Dalian Wanda cultural and
Sunac China (China) July 10 6.45
tourism projects (China)
Goldman Sachs 18.05 9.2 9.5 BofA-Merrill Lynch 3.83 6.4 6.2 Intel INTC 1,369 38.08 4.34 12.9 38.45 33.23 0.9
COSCO,, Shanghai International
Barclays 15.61 7.9 9.4 Morgan Stanley 3.57 6.0 5.5 Teva Pharmaceutical ADR TEVA 1,332 17.60 –15.62 –47.0 46.76 15.22 –61.7 Orient Overseas (Hong Kong) July 7 6.30
Port (China)
Citi 14.68 7.5 8.6 Citi 3.32 5.6 4.8 Microsoft MSFT 1,288 74.49 5.56 8.1 75.97 56.32 29.3 Banco Popular Espanol real
Wells Fargo Sec 12.80 6.5 5.2 Credit Suisse 2.66 4.5 4.1 Blackstone Group (USA) Aug. 8 6.01
Gainers and losers include common issues of $2 or more listed on NYSE, Nasdaq, NYSE MKT or NYSE estate business (Spain)
Credit Suisse 12.26 6.2 7.0 Barclays 2.60 4.4 4.1 Arca at the beginning of the quarter. Energy Capital Partners, Access
Calpine (USA) Aug. 18 5.63
RBC Capital Markets 10.58 5.4 4.1 Deutsche Bank 1.96 3.3 3.6 Industries, CPPIB (USA)
Morgan Stanley 10.14 5.2 4.9 UBS 1.36 2.3 2.1 Hellman & Friedman, Bain
Nets (Denmark) Sept. 25 5.28
Capital, and others (USA)
9.60 4.9 9.0 1.33 2.2 2.1
Deutsche Bank RBC Capital Markets Industry Groups ATP, Ontario Teachers Pension Copenhagen Airports (70%)
Sept. 13 5.03
Top 10 Totals 144.29 73.3 76.7 Top 10 Totals 29.75 49.8 47.2 Best and worst-performing U.S. industry groups in the past quarter Plan (Denmark) (Denmark)
Industry Total 196.82 100.0 100.0 Industry Total 59.73 100.0 100.0 based on the DJ U.S. Total Stock Market Index family Total (France) Maersk Olie og Gas (Denmark) Aug. 21 4.90
Starwood Waypoint Homes
1Dealogic Revenue analytics are employed Best Performers Worst Performers Invitation Homes (USA) Aug. 10 4.35
Note: Estimates, allocated according to (USA)
where fees aren't disclosed. 2Includes participation in a deal % chg from % chg from
Cheung Kong Property, Cheung
government-guaranteed debt issuance. Source: Industry group prev qtr Industry group prev qtr
Kong Infrastructure (Hong ista International (Germany) July 27 4.34
Dealogic Source: Dealogic Kong)
Aluminum 32.6 Airlines –11.7
17.4 –10.8 Reckitt Benckiser food division
Trucking Footwear McCormick & Co (USA) July 19 4.20
(USA)
Forestry 16.2 Tobacco –9.2
Who's No. 1? Nonferrous Metals 15.9 Electronic Office Equipment –7.2
InfraRed Capital Partners,
Equitix (UK)
HS1 (UK) July 14 3.90
Leading stock-and-bond underwriters, by volume, third-quarter 2017 Aerospace 13.9 Media Agencies –5.7 Blackstone Group, CVC Capital
Gold Mining 13.1 Durable Household Products –5.2 Paysafe Group (Isle of Man) July 21 3.78
Third-qtr Change from Partners (USA)
market previous qtr Semiconductors 12.9 Alternative Fuels –4.3 Andeavor (USA) Andeavor Logistics (29%) (USA) Aug. 14 3.77
Market Sector No. 1 Manager share (%) (pct. points)
Auto Parts 12.6 Drug Retailers –4.0 New York State Catholic Health
Centene (USA) Sept. 12 3.75
Stocks and Bonds Renewable Energy Equipment 12.3 Restaurants & Bars –3.7 Plan (USA)
Biotechnology 12.1 Brewers –3.7 Metro (Canada) Jean Coutu Group (Canada) Sept. 27 3.63
Global Debt, Equity & Equity-linked Citi 6.8% -0.6
Global Fees1 J.P. Morgan 7.5 0.1 Source: S&PDow Jones Indices CRH (Ireland) Ash Grove Cement (USA) Sept. 20 3.50
U.S. Debt, Equity & Equity-linked BofA - Merrill Lynch 12.2 1.2 Hydro One (Canada) Avista (USA) July 19 3.45
U.S. Fees1 BofA - Merrill Lynch 11.4 2.0 Silver Run Acquisition Corp II
Alta Mesa (USA) Aug. 17 3.12
(USA)
Stocks IPO Scorecard Leonard Green (USA) CPA Global (Jersey) Aug. 29 3.11
Global Equity & Equity-linked J.P. Morgan 8.7% 1.6 Best performing global public offerings of stock that came to market Stada Arzneimittel (65%)
during the period Bain Capital, Cinven (USA) July 10 3.07
Global Common Stock Morgan Stanley 8.2 0.3 (Germany)
Global Initial Public Offerings J.P. Morgan 6.8 2.0 Offer End-of-qtr % Chg from Commonwealth Bank of
Global Equity-linked J.P. Morgan 14.8 3.6 Company Symbol price close Offer IPO date* AIA Group (Hong Kong) Australia's life and health Sept. 21 3.05
(US Issuers) Equity & Equity-linked Goldman Sachs 15.0 6.0 insurance businesses (Australia)
BGI Genomics (China) 300676 CNY13.64 170.00 1145.7 July 14
(US Issuers) Common Stock Goldman Sachs 16.0 5.5 KKR & Co (USA)
Nature's Bounty (Majority%)
July 24 3.00
(US Issuers) Initial Public Offerings Credit Suisse 22.2 14.9 Sunstone Development (China) 603612 CNY7.88 68.00 767.0 July 18 (USA)
(US Issuers) Equity-linked BofA - Merrill Lynch 22.3 13.7 Weihai Guangwei Composites (China) 300699 CNY11.26 72.00 535.8 Sept. 1 Guangzhou R&F Properties
77 Dalian Wanda hotels (China) July 19 2.95
(China)
Bonds2 Guangzhou Kingmed Diagnostics Group (China) 603882 CNY6.93 42.00 502.2 Sept. 8
*excludes spin-offs, repurchases, restructuring, joint ventures, privatisations and open market
Global Debt Citi 7.0% -0.4 Union Optech (China) 300691 CNY15.96 75.00 367.3 Aug. 11 purchases. Final stake 50%+. Source: Dealogic
Global Investment Grade Debt BofA - Merrill Lynch 7.2 -0.2
Global Asset-backed Securities Citi 15.2 -3.9 Akcea Therapeutics Inc (United States) AKCA USD8 27.67 254.1 July 14
U.S. Debt BofA - Merrill Lynch 11.3 0.7 Zhuhai Sailong Pharmaceutical (China) 002898 CNY8.31 29.00 253.6 Sept. 12
U.S. Investment Grade Debt BofA - Merrill Lynch 13.7 1.1
World-Wide Merger Advisers
Chengdu ALD Aviation Mfg. (China) 300696 CNY22.38 79.00 250.8 Aug. 22 Advisers ranked by transaction values when announced, with credit
U.S. Federal Credit Agency Debt Barclays 11.0 4.0
U.S. Financial Institutions BofA - Merrill Lynch 15.4 3.6 Nanjing King-Friend Bio. Pharm (China) 603707 CNY7.21 25.00 241.2 July 19 given to both target and acquiring companies' advisers; includes net
U.S. Mortgage-backed Securities Wells Fargo Securities 15.6 -2.5 25.00 debt of target companies; first 9 months
Shanghai Shine-Link Intl. Logistics (China) 603648 CNY7.37 236.8 Sept. 13
U.S. Asset-backed Securities Citi 19.3 -4.8 First 9 Months 2017 First 9 Months 2016
Zhejiang Meilun Elevator (China) 603321 CNY6.07 20.00 228.3 Sept. 15
Syndicated Loans Value, No. of Value, No. of
Zhejiang Huangma Technology (China) 603181 CNY10.36 32.00 213.4 Aug. 24 Adviser Rank ($) Billions Deals Rank ($) Billions Deals
Global Syndicated Loans BofA - Merrill Lynch 11.9% 2.2
Tibet Weixinkang Medicine (China) 603676 CNY5.53 17.00 207.4 July 21 Goldman Sachs 1 528.7 256 1 $594.6 213
U.S. Syndicated Loans BofA - Merrill Lynch 16.8 2.9
Calyxt Inc (United States) CLXT USD8 24.49 204.8 July 20 Morgan Stanley 2 460.4 221 2 550.4 212
Leveraged Finance
Impulse (Qingdao) Health Tech (China) 002899 CNY16.05 46.00 185.6 Sept. 15 JPMorgan 3 430.9 258 3 435.1 221
US Core Leveraged Finance Revenue J.P. Morgan 9.6% -2.0 Citi 4 410.3 176 6 308.0 175
US Core Leveraged Finance Goldman Sachs 9.5 1.6 Cashway Technology (China) 603106 CNY10.75 30.00 180.6 Sept. 20 Bank of America Merrill Lynch 5 369.9 154 4 434.8 173
US Total Leveraged Finance BofA - Merrill Lynch 12.1 2.0 Anhui Zhongyuan New Materials (China) 603527 CNY13.27 37.00 179.0 Sept. 7 Barclays 6 231.0 124 7 288.9 141
Global High Yield Debt J.P. Morgan 10.1 0.9 Credit Suisse 7 218.0 162 5 396.5 182
U.S. High Yield Debt J.P. Morgan 10.6 -0.3 Guangzhou Sie Consulting (China) 300687 CNY22.14 61.00 175.3 Aug. 3
Lazard 8 206.4 166 9 211.3 186
Global Leveraged Loans BofA - Merrill Lynch 11.2 2.5 Zhejiang Tianyu Pharmaceutical (China) 300702 CNY22.41 61.00 173.8 Sept. 19 9 223 8 237
Rothschild Co 174.1 181.4
U.S. Leveraged Loans BofA - Merrill Lynch 12.7 2.2
Guangdong Tianan New Material (China) 603725 CNY9.64 26.00 169.4 Sept. 5 UBS 10 162.2 118 10 230.8 134
1 Dealogic Revenue analytics are employed where fees are not disclosed2 Includes government
guaranteed debt issuance Source: Dealogic *First trading day Source: Dealogic Source: Dealogic
MEDIA & MARKETING
Tycoon Who Built ‘It’ Returns to Top Spot

Condé Nast Into an BY ASSOCIATED PRESS
Empire Dies at 89 LOS ANGELES—After dip-

ping to No. 2 the prior week-
end, “It” regained control of
FOX SEARCCOLUMBIA PICTURES/EVERETT COLLECTIONHLIGHT

the North American box office
BY JEFFREY A. TRACHTENBERG in its fourth weekend in the-
aters.
Samuel Irving Newhouse The movie beat out the new
Jr., the publishing magnate Tom Cruise film “American
whose passion for art, photog- Made” and “Kingsman: The
raphy and popular culture Golden Circle,” but it was a
transformed Condé Nast into close race that could shift
one of the world’s most distin- when studios report weekend
NEIL RASMUS/PATRICKMCMULLAN
guished magazine companies, actuals on Monday.

died Sunday at age 89, accord- According to studio esti-
ing to a spokesman for the mates on Sunday, the Stephen
family. King adaptation and box-office
He died at home following a juggernaut added $17.3 million
long illness. to take the top spot. The film
Mr. Newhouse, known as Si, now boasts $291.2 million in Sony’s ‘Flatliners’ finished fifth at the box office this weekend with $6.7 million in ticket sales.
was chairman emeritus of domestic grosses.
closely held Advance Publica- Mr. Newhouse, seen in 2006. “It” edged out the prior Nick Carpou, who heads up
tions Inc. Together with his weekend’s box-office champ, distribution for Universal Pic-
brother, Donald, he oversaw a majority owner of social news “Kingsman: The Golden Circle”
Estimated Box-Office Figures, Through Sunday tures which is handling world-
SALES, IN MILLIONS
vast media site Reddit Inc. and newcomer “American wide distribution for “Ameri-
SAMUEL company The Newhouse family said in Made,” which essentially tied for FILM DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE can Made,” said this debut is
IRVING with in- a statement: “Today is a day of second with $17 million apiece. “the beginning of what will be
1. It Warner Bros. $17.3 $291.2 -42
NEWHOUSE JR. vestments emotion, of genuine loss, for our Estimates have “American a long playout and a successful
1927-2017 in newspa- family and for Si Newhouse’s Made” taking a slight advantage, 2. American Made Universal $17 $17 — one.”
pers, mag- extended family at Condé Nast. with around $16,000 more than 3. Kingsman: The Twentieth $17 $66.7 -56 “Kingsman: The Golden Cir-
azines, ca- Si loved Condé Nast. He was the “Kingsman” sequel. Golden Circle Century Fox cle” fell about 56% in its sec-
ble and assorted digital proud to publish the finest mag- Directed by Doug Liman, ond weekend in theaters,
4. The Lego Warner Bros. $12 $35.6 -41
properties. azines in the world and to offer “American Made” is earning bringing its domestic total to
Ninjago Movie
Those who worked for Si exceptional content on every Mr. Cruise strong praise for $66.7 million.
Newhouse described him as an digital platform.” his portrayal of a real-life TWA 5. Flatliners Sony $6.7 $6.7 — “The Lego Ninjango Movie”
introverted but rigorous busi- Condé Nast Chief Executive pilot turned drug smuggler *Friday, Saturday and Sunday Source: comScore took fourth place with $12 mil-
nessman whose zest for maga- Bob Sauerberg added: “Si New- and CIA operative, but it is lion, while the “Flatliners” re-
zines reshaped the publishing house created the Condé Nast also a somewhat lukewarm make opened to a cold $6.7
landscape. Although he had we know today. His entrepre- North American debut for the so high for himself that any- The film, which cost a re- million for a fifth-place start.
command of even the smallest neurial spirit energized the star. Mr. Liman also directed thing less than No. 1 feels like ported $50 million to make, The weekend closes out
details, he gave top staffers company. In the past decade, Mr. Cruise in “Edge of Tomor- a comedown. That’s the conun- got a few weeks’ head start in- what is looking to be a record-
the freedom to make their even as he was gradually step- row,” which opened to $28.8 drum he’s in,” said Paul Derga- ternationally, however, and has breaking September at the box
own editorial decisions. ping away from day-to-day million in June of 2014. rabedian, the senior media an- already raked in $81.7 million office, although the year is still
Otherwise, Mr. Newhouse management, his final gift to “Tom Cruise has set the bar alyst for comScore. world-wide to date. down about 4.7% from 2016.
was very much hands-on. “He Condé Nast was to encourage its
was a brilliant kingmaker who transition from a publisher of
Malaysia Exits Formula One Racing

knew how to pick winners, be it print magazines to a far more
editors or publishers,” said Tom varied, digital enterprise.”
Florio, a former senior publish- Advance was founded by Mr.
ing executive at Condé Nast. Newhouse’s father, Samuel I.
Top Condé Nast editors that Newhouse, a successful newspa- BY YANTOULTRA NGUI returns had led Malaysia to 100,000 spectators needed to series has steadily increased
Mr. Newhouse handpicked in- per investor who bought Condé call a halt after 19 races. “But break even, with attendance at its audience here to 161,553 in
cluded Tina Brown, who edited Nast in 1959. Si Newhouse, his SEPANG, Malaysia—The that doesn’t mean we can’t re- the annual event peaking at 2016 from 65,000 in 1999, ac-
Vanity Fair and then the New oldest son, was named Condé checkered flag fell on Formula consider it at some point of 126,690 in 2008 and falling to cording to Sepang Interna-
Yorker; Vanity Fair’s exiting Nast’s chairman 16 years later. One in Malaysia on Sunday, time in the future, provided 83,828 last year. In the final tional Circuit.
editor Graydon Carter; David As a magazine executive, Si with the Southeast Asian na- economic returns are favorable race, 110,604, according to “F1 was a great product be-
Remnick, who succeeded Ms. Newhouse quickly made his tion hosting its final race be- to us,” he said. Sepang International Circuit. fore; now, it is not as good,”
Brown as editor of the New mark. Condé Nast launched fore it turns instead to the in- Formula One ushered in a Discounted tickets helped Razlan Razali, chief of the
Yorker; and Anna Wintour, ed- Self magazine in 1979 and creasingly popular motorcycle major Asian expansion with boost the final figure. Atten- Sepang International Circuit,
itor of Vogue. snapped up GQ. Mr. Newhouse grand prix series that its gov- the inauguration of the Malay- dance has fallen in other Asian said in an interview. “We pay
Advance Publications owns later bought Gourmet, re- ernment perceives as a better sian race in 1999 at a track markets as well. less for MotoGP, and I think
newspapers such as the Times- launched Vanity Fair and ac- value for money. next to Kuala Lumpur Interna- Malaysia is now betting on the exposure the country gets
Picayune in New Orleans and quired the New Yorker, Bon Prime Minister Najib Razak tional Airport. But organizers MotoGP. While F1 attendance is more or less the same as
the Staten Island Advance; mag- Appétit, Architectural Digest, told reporters that diminishing struggled to bring in the has declined, the motorcycle F1.”
azines including Vogue and Wired, Fairchild Publications,
Glamour; and stakes in Discov- Golf Digest and Modern Bride.
ery Communications Inc. and Mr. Newhouse is survived Borrowing Benchmarks | WSJ.com/bonds Week
Latest ago
—52-WEEK—
High Low
Week
Latest ago
—52-WEEK—
High Low
Charter Communications Inc. by his wife, Victoria New-
Advance also owns data-analy- house, two children, and his
Money September 29, Key annual interest rates paid to U.S. government rates Commercial paper (AA financial)
Rates 2017 borrow or lend money in U.S. and 90 days 1.26 1.28 1.30 0.62
tics firm 1010data Inc. and is the brother, Donald. Discount
international markets. Rates
1.75 1.75 1.75 1.00 Libor
below are a guide to general levels One month 1.23222 1.23833 1.23889 0.52400
but don’t always represent actual
Insider-Trading Spotlight transactions.
Federal funds Three month
Six month
1.33389
1.50600
1.32944
1.49683
1.33500
1.50944
0.85367
1.23972
Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys Effective rate 1.0700 1.1700 1.2000 0.3300
One year 1.78233 1.77539 1.82761 1.55178
new information about the prospects of a company. Insiders are required to report large trades to the SEC High 1.3125 1.3125 1.3125 0.5625
within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by Inflation Low 1.0300 1.0500 1.1600 0.2000 Euro Libor
Aug. index Chg From (%) Bid 1.0600 1.1600 1.1700 0.2800 One month -0.404 -0.401 -0.376 -0.405
Thomson Financial on September 29, and year-to-date stock performance of the company level July '17 Aug. '16
KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer Offer 1.0700 1.1700 1.1900 0.3000 Three month -0.379 -0.378 -0.319 -0.380
CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner Six month -0.309 -0.305 -0.212 -0.309
U.S. consumer price index Treasury bill auction
I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: One year -0.221 -0.219 -0.071 -0.221
All items 245.519 0.30 1.9 4 weeks 0.970 0.960 1.300 0.160
unknown VP: vice president Excludes pure options transactions Core 252.460 0.21 1.7 13 weeks 1.050 1.045 1.180 0.250 Euro interbank offered rate (Euribor)
International rates 26 weeks 1.170 1.180 1.180 0.420 One month -0.372 -0.372 -0.366 -0.375
Biggest weekly individual trades Three month -0.329 -0.329 -0.301 -0.332
Based on reports filed with regulators this past week Week 52-Week Secondary market Six month -0.273 -0.271 -0.202 -0.275
Latest ago High Low One year -0.172 -0.171 -0.063 -0.172
No. of shrs in Price range ($) $ Value
Date(s) Company Symbol Insider Title trans (000s) in transaction (000s) Close ($) Ytd (%) Fannie Mae Value 52-Week
Prime rates Latest Traded High Low
30-year mortgage yields
U.S. 4.25 4.25 4.25 3.50
Buyers Canada 3.20 3.20 3.20 2.70 30 days 3.429 3.418 3.865 2.849 DTCC GCF Repo Index
Sept. 15-19 Sysco SYY J. Frank DI 890 53.55-54.06 47,753 53.95 -2.6 Japan 1.475 1.475 1.475 1.475 60 days 3.455 3.446 3.899 2.877 Treasury 1.203 29.150 1.366 0.244
Sept. 15-19 N. Peltz DI 890 53.55-54.06 47,753 MBS 1.260 75.960 1.506 0.257
Policy Rates Other short-term rates
Sept. 22 Pulse Biosciences PLSE R. Duggan B 2,000 15.02 30,040 18.61 186.3
Euro zone 0.00 0.00 0.00 0.00 Open Implied
Sept. 26 Tiffany & Co TIF F. Trapani DI 25 89.34 2,234 91.78 18.5 Switzerland 0.50 0.50 0.50 0.50 Settle Change Interest Rate
Week 52-Week
Sept. 26 R. Farah D 5 89.37 490 0.25 0.25 0.25
Britain 0.25 Latest ago high low DTCC GCF Repo Index Futures
Sept. 25 R. Farah D 5 88.24 399
Sept. 25 R. Singer D 1 88.13 88 Australia 1.50 1.50 1.50 1.50
Treasury Sep 98.882 -0.003 2769 1.118
Sept. 25-26 Revlon REV R. Perelman DOI 107 20.03-21.45 2,196 24.55 -15.8 Overnight repurchase Call money Treasury Oct 98.870 -0.005 3776 1.130
Sept. 26 Mercer International MERC . BI 125 11.40 1,425 11.85 11.3 U.S. 1.16 1.07 1.38 0.15 3.00 3.00 3.00 2.25 Treasury Nov 98.870 unch. 4794 1.130
Sept. 26 RH RH G. Friedman CEO 14 71.64 1,000 70.32 129.1 Notes on data:
Sept. 21 L Brands LB A. Tessler DI 20 37.00 740 41.61 -36.8 U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective June 15, 2017. Other prime rates
Sept. 5-12 Apollo Endosurgery APEN R. Anderson DOI 176 3.85-4.04 685 4.68 -61.5 aren’t directly comparable; lending practices vary widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Trust &
Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon
Sept. 5-12 M. Crawford DOI 176 3.85-4.04 685 rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US.
Sept. 27 Campbell Soup CPB L. Mignini O 4 46.47 200 46.82 -22.6 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Sept. 20 First Internet Bancorp INBK D. Becker CEO 5 30.02 150 32.30 0.9 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
Sept. 20 J. Williams DI 2 30.05 63
Sept. 20-21 Hennessy Advisors HNNA B. Hennessy D 5 15.43-15.44 77 15.44 -27.1
Sept. 26 UDR Inc UDR C. Mcdonnough D 2 38.17 76 38.03 4.2
Sellers
Sept. 22-26 Wal-Mart Stores WMT S. Walton DOI 2,000 79.13-80.02 158,933 78.14 13.0
Sept. 22-26 A. Walton BI 2,000 79.13-80.02 158,933
Sept. 22-26 J. Walton BI 2,000 79.13-80.02 158,933
Sept. 26-27 Willis Towers Watson WLTW J. Ubben DI 304 154.88-156.01 47,139 154.23 26.1
Sept. 25-27 McKesson MCK J. Hammergren CEO 300 154.15-155.30 46,426 153.61 9.4
Sept. 20-22 J. Hammergren CEO 225* 150.18-153.53 34,125
Sept. 25-26 MyoKardia MYOK K. Starr DOI 601 43.00 25,860 42.85 230.9 Looking for Great Rates + Safety?
Sept. 20-21 Sysco SYY W. Delaney CEO 400 54.07-54.24 21,662 53.95 -2.6
Sept. 12-13 J. Frank DI 372 53.08-53.09 19,765
Sept. 22-25 W. Delaney CEO 282 53.50-53.58 15,083
Sept. 22
Sept. 21
Hewlett Packard Enterprise
NVIDIA
HPE
NVDA
M. Whitman
H. Jones
CEO
DI
1,494
100
14.27
185.65
21,321
18,565 178.77
14.71 9.3
67.5
Jump in!
1.50
Sept. 20 M. Stevens DI 80 187.23 15,025
%
Sept. 26 CarMax
Sept. 25-26 HP Inc
KMX
HPQ
W. Wood
D. Weisler
CO
CEO
202
732
73.56
19.97
14,837 75.81
14,608 19.96
17.7
34.5
12-MONTH CD
Sept. 22 Nexstar Media Group NXST J. Muse D 229* 59.50 13,642 62.30 -1.6
Sept. 26-28 RealPage RP S. Winn CEO 255* 38.81-40.66 10,193 39.90 33.0
Sept. 20 CBS Corp CBS L. Moonves CEO 164* 59.04 9,683 58.00 -8.8
* Half the transactions were indirect **Two day transaction
p - Pink Sheets
APY*
Buying and selling by sector $2,000 minimum opening deposit
Based on actual transaction dates in reports received this past week
Sector Buying Selling Sector Buying Selling

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Basic Industries 1,425,000 22,316,458 Finance 367,513 93,745,174
Business services 0 6,316,602 Health care 70,247 34,637,175 Visit us at synchronybank.com or call 1-800-753-6870 to get started.
Capital goods 0 0 Industrial 0 10,342,029
Consumer durables 0 2,560,476 Media 0 56,234 * Annual Percentage Yield (APY) is accurate as of 10/1/17 and subject to change at any time without notice.
A minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be
Consumer nondurables 202,228 5,528,449 Technology 0 96,012,264 imposed for early withdrawals. Fees may reduce earnings. After maturity, if you choose to roll over your CD, you will
Consumer services 4,287,734 110,060,766 Transportation 0 4,572,625 earn the base rate of interest in effect at that time. Visit synchronybank.com for current rates, terms and
Energy 0 10,064,561 Utilities 0 7,826,258 account requirements. Offer applies to personal accounts only.
© 2017 Synchrony Bank
Sources: Thomson Financial; WSJ Market Data Group
COMMODITIES | WSJ.com/commodities
Contract Open Contract Open Contract Open
Futures Contracts Open High hilo Low Settle Chg interest Open High hilo Low Settle Chg interest Open High hilo Low Settle Chg interest
Metal & Petroleum Futures March'18 364.75 370.50 362.75 367.75 2.50 245,416 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Dec .8047 .8057 .7983 .8026 –.0027 175,064
Oats (CBT)-5,000 bu.; cents per bu. Oct 13.27 13.56 13.15 13.54 .31 20,620 British Pound (CME)-£62,500; $ per £
Contract Open 14.01 14.15 13.76 14.10 .15 428,457
Dec 249.25 253.25 244.50 251.25 1.75 4,759 March'18 Oct 1.3436 1.3436 1.3357 1.3415 –.0039 844
Open High hi lo Low Settle Chg interest
March'18 250.75 256.50 250.00 255.25 1.75 1,230 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Dec 1.3471 1.3471 1.3380 1.3439 –.0039 181,240
Copper-High (CMX)-25,000 lbs.; $ per lb. Soybeans (CBT)-5,000 bu.; cents per bu. Nov 27.02 27.02 27.00 27.17 … 2,943 Swiss Franc (CME)-CHF 125,000; $ per CHF
Oct 2.9630 2.9635 2.9315 2.9375 –0.0250 3,119 959.25 976.00 955.25 968.25 8.75 335,786 Cotton (ICE-US)-50,000 lbs.; cents per lb.
Nov Dec 1.0358 1.0392 1.0338 1.0378 .0018 40,685
Dec 2.9775 2.9925 2.9455 2.9550 –0.0260 180,674 69.11 69.30 68.80 69.08 –.52 120
Jan'18 970.00 986.75 966.00 978.50 8.25 115,289 Oct March'18 1.0377 1.0433 1.0369 1.0447 .0018 127
Gold (CMX)-100 troy oz.; $ per troy oz. Soybean Meal (CBT)-100 tons; $ per ton. Dec 69.05 69.22 68.28 68.45 –.52 132,865 Australian Dollar (CME)-AUD 100,000; $ per AUD
Oct 1284.20 1289.40 1281.80 1281.50 –4.00 3,006 Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Oct 307.00 312.90 305.20 311.50 4.70 5,572 Oct .7848 .7854 .7817 .7842 –.0015 933
Dec 1290.10 1293.20 1278.20 1284.80 –3.90 424,083
Dec 311.40 317.30 309.70 315.80 4.30 172,065 Nov 146.05 149.85 145.40 148.35 1.35 5,177 Nov .7838 .7849 .7814 .7840 –.0015 411
Feb'18 1293.90 1297.00 1282.50 1288.90 –3.90 53,441
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Jan'18 146.00 150.00 145.75 148.40 1.40 1,852 Dec .7845 .7847 .7810 .7836 –.0015 146,942
April 1295.70 1299.40 1292.80 1292.90 –3.90 10,842
Oct 32.59 32.90 32.41 32.57 –.02 2,479 Jan'18 .7837 .7844 .7809 .7834 –.0015 284
June 1299.60 1304.30 1292.60 1296.80 –3.90 10,530
Dec 32.82 33.18 32.65 32.82 … 189,357 Interest Rate Futures March .7826 .7832 .7806 .7829 –.0015 490
Dec 1315.50 1315.50 1306.90 1308.60 –3.70 10,990
Palladium (NYM) - 50 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt. Mexican Peso (CME)-MXN 500,000; $ per MXN
Nov 1197.50 1208.50 1197.00 1199.50 2.50 8,984
Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Dec .05448 .05459 .05408 .05425 –.00011 210,984
Dec 930.30 938.90 928.00 936.85 9.00 30,217 Dec 152-240 153-000 152-120 152-260 1.0 708,762
March'18 929.30 934.40 926.50 932.25 9.45 1,115 Jan'18 1233.50 1236.50 1227.50 1227.50 3.00 1,296 Euro (CME)-€125,000; $ per €
Wheat (CBT)-5,000 bu.; cents per bu. March'18 151-170 151-200 151-170 151-210 1.0 54
Platinum (NYM)-50 troy oz.; $ per troy oz. Oct 1.1792 1.1841 1.1783 1.1825 .0024 1,690
Dec 455.50 459.00 446.25 448.25 –6.75 248,533
Treasury Notes (CBT)-$100,000; pts 32nds of 100% 1.1834 1.1882 1.1821 1.1865 .0024 422,669
Oct 922.00 922.30 910.80 910.30 –10.70 921 Dec 125-170 125-200 125-065 125-100 –7.5 3,187,166
Dec
Jan'18 926.70 930.30 914.40 915.50 –10.20 65,344 March'18 474.50 478.25 465.50 466.50 –7.75 84,151
March'18 125-050 125-050 124-295 124-315 –8.0 1,292
Silver (CMX)-5,000 troy oz.; $ per troy oz. Wheat (KC)-5,000 bu.; cents per bu. Index Futures
453.00 456.75 441.75 442.75 –10.25 133,113
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Oct 16.810 16.810 16.715 16.607 –0.166 841 Dec
Sept 117-300 118-000 117-300 117-312 –2.7 11,323 Mini DJ Industrial Average (CBT)-$5 x index
Dec 16.900 16.905 16.640 16.676 –0.171 145,673 March'18 470.25 474.00 459.50 460.25 –10.50 75,018
Dec 117-210 117-225 117-135 117-160 –5.2 2,996,541 Dec 22319 22351 s 22281 22346 26 156,955
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Wheat (MPLS)-5,000 bu.; cents per bu.
Nov 51.58 51.77 51.25 51.67 0.11 529,373 Dec 644.00 647.75 620.25 623.75 –21.25 40,172
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% March'18 22305 22310 s 22267 22323 22 777
Sept 108-020 108-025 108-020 108-022 –1.5 7,218 S&P 500 Index (CME)-$250 x index
Dec 51.94 52.08 51.59 51.95 0.08 345,210 March'18 656.25 659.00 634.00 637.00 –19.75 22,836
Dec 107-290 107-292 107-262 107-272 –2.0 1,586,007 2507.00 2517.70 s 2505.00 2516.10 8.40 45,749
Jan'18 52.14 52.29 51.84 52.14 0.05 223,470 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec
March 52.29 52.44 52.00 52.24 … 202,317 Oct 153.125 153.500 151.750 152.225 –.725 11,250
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Mini S&P 500 (CME)-$50 x index
Sept 98.848 98.848 98.845 98.845 … 97,651 2507.75 2517.75 s 2504.75 2516.00 8.25 2,998,518
June 52.06 52.29 51.85 52.05 –0.03 190,046 Nov 154.975 155.550 153.375 154.000 –.975 21,350 Dec
51.55 51.80 51.36 51.52 –0.03 253,332 Jan'18 98.680 98.680 98.670 98.680 … 321,218 March'18 2506.00 2517.25 s 2504.50 2515.50 8.25 16,573
Dec Cattle-Live (CME)-40,000 lbs.; cents per lb.
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Oct 109.500 109.875 108.825 109.100 .125 43,672
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Mini S&P Midcap 400 (CME)-$100 x index
1.8325 1.8327 1.8061 1.8117 –.0203 4,439 Dec 101.516 101.688 101.281 101.438 –.109 29,355
Oct Dec 115.250 115.850 114.325 115.250 .200 145,804 Dec 1793.50 1799.70 s 1792.00 1795.70 1.70 89,955
Nov 1.8244 1.8263 1.8001 1.8100 –.0143 136,771 Hogs-Lean (CME)-40,000 lbs.; cents per lb. 1 Month Libor (CME)-$3,000,000; pts of 100% March'18 1763.10 1763.10 s t 1763.10 1792.60 1.70 1
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Oct 98.7650 98.7650 98.7650 98.7625 .0025 1,218
Oct 55.400 56.375 55.275 55.400 –.150 35,654 Mini Nasdaq 100 (CME)-$20 x index
Oct 1.6305 1.6407 1.6001 1.6065 –.0253 6,634 Dec 98.6025 98.6100 98.6000 98.6125 … 1,037
Dec 57.775 61.175 57.350 59.950 1.675 117,753 Dec 5939.3 5985.5 5933.0 5982.5 44.0 262,084
Nov 1.6175 1.6236 1.5820 1.5910 –.0238 157,742 Eurodollar (CME)-$1,000,000; pts of 100% March'18 5949.0 5994.8 5943.8 5993.0 44.5 634
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Oct 98.6475 98.6550 98.6475 98.6500 … 168,275
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Nov 403.80 408.50 400.60 402.20 –.20 4,495 Mini Russell 2000 (ICE-US)-$100 x index
Nov 3.022 3.044 2.992 3.007 –.010 308,816 Dec 98.5200 98.5250 98.5050 98.5200 … 1,982,993
Jan'18 395.10 395.40 389.00 392.90 –2.80 1,051 Dec 1490.40 1495.20 s 1488.50 1493.00 .50 59,462
Dec 3.192 3.210 3.161 3.181 –.003 125,026 March'18 98.4150 98.4200 98.3900 98.4100 –.0050 1,279,736
Milk (CME)-200,000 lbs., cents per lb. March'18 1487.00 1487.00 1485.00 1492.80 .50 46
Jan'18 3.303 3.322 3.275 3.295 –.003 153,941 Dec 98.1700 98.1750 98.1200 98.1350 –.0300 1,509,745
Sept 16.38 16.38 16.37 16.38 .01 4,819 Mini Russell 1000 (ICE-US)-$100 x index
Feb 3.300 3.326 3.282 3.299 –.005 84,693
Oct 16.28 16.34 16.21 16.24 –.05 4,609 Dec 1391.30 1395.80 s 1390.10 1395.90 4.80 303
March 3.265 3.278 3.233 3.249 –.009 124,243 Currency Futures
Cocoa (ICE-US)-10 metric tons; $ per ton. March'18 … … … 1394.90 4.80 1
April 2.941 2.950 2.926 2.939 –.008 125,654
Dec 1,976 2,057 1,968 2,043 63 132,744 Japanese Yen (CME)-¥12,500,000; $ per 100¥ U.S. Dollar Index (ICE-US)-$1,000 x index
March'18 1,980 2,047 1,968 2,034 54 63,667 Oct .8906 .8917 .8877 .8895 –.0008 1,320 Dec 93.00 93.12 92.81 92.88 –.05 43,921
Agriculture Futures Coffee (ICE-US)-37,500 lbs.; cents per lb. March'18 92.76 92.83 92.57 92.61 –.04 1,386
Dec .8933 .8943 .8901 .8920 –.0008 218,125
Corn (CBT)-5,000 bu.; cents per bu. Dec 128.95 129.15 127.25 128.05 –.45 104,350 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Dec 352.25 358.00 350.00 355.25 2.75 792,061 March'18 132.55 132.70 130.85 131.65 –.45 42,979 Oct .8040 .8054 .7982 .8023 –.0028 442 Source: SIX Financial Information
Closed-End Funds | WSJ.com/funds

Listed are the 300 largest closed-end funds as 52 wk Prem12 Mo Prem12 Mo Prem12 Mo 52 wk
measured by assets. Prem Ttl Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld Fund (SYM) NAV Close /Disc Yld
Closed-end funds sell a limited number of shares and Prem Ttl
Fund (SYM) NAV Close /Disc Ret BlackRock Corp Hi Yd Fd HYT 12.31 11.30 -8.2 8.0 BlkRk MuniYield MYD 14.90 15.06 +1.1 5.6 BlRk Muyld NY Qlty MYN 14.22 13.19 -7.2 4.8 Fund (SYM) NAV Close /Disc Ret
invest the proceeds in securities. Unlike open-end
funds, closed-ends generally do not buy their shares Nuveen Real Est Incm Fd JRS 11.23 11.15 -0.7 2.7 BlackRockDurInco Tr BLW 17.05 16.11 -5.5 7.9 BlkRk MuniYld Quality MQY 15.84 15.42 -2.7 5.5 Eaton Vance CA Mun Bd EVM 12.45 12.04 -3.3 4.8 World Equity Funds
back from investors who wish to cash in their holdings. NuvS&P500DynOverwrite SPXX 15.64 NA 21.1 Brookfield Real Assets RA 25.38 23.79 -6.3 NS BlkRk MuniYld Qlty II MQT 13.89 13.34 -4.0 5.5 Invesco CA Value Mun Incm VCV 13.46 13.12 -2.5 4.9 BMO LGM Front ME 10.21 NA NA 13.2
Instead, fund shares trade on a stock exchange. NuveenS&P500Buy-Write BXMX 14.17 13.98 -1.3 13.0 Credit Suisse High Yld DHY 2.80 2.88 +2.9 9.6 BlRkMunyldQltyIII MYI 14.47 14.33 -1.0 5.6 Invesco PA Value Mun Incm VPV 14.04 12.31 -12.3 5.0 CalamosGlbTotRet CGO 13.09 13.41 +2.4 14.2
a-The NAV and market price are ex dividend. b-The Reaves Utility Fund UTG 34.57 31.70 -8.3 13.3 DoubleLine Incm Solutions DSL NA 21.25 NA 8.6 Deutsche Mun Income Tr KTF 12.63 12.71 +0.6 6.3 Invesco Inv Grade NY Muni VTN 14.64 13.70 -6.4 4.9 U.S. Mortgage Bond Funds
NAV is fully diluted. c-NAV is as of Thursday’s close. d-
NAV is as of Wednesday’s close. e-NAV assumes rights Tekla Hlthcr Investors HQH 26.02 25.23 -3.0 14.9 Dreyfus Hi Yd Strat Fd DHF 3.58 3.53 -1.4 8.9 Dreyfus Mun Bd Infr Fd DMB 14.19 13.37 -5.8 4.9 Nuveen CA AMT-Free Qual NKX 15.74 15.77 +0.2 4.9 Vertical Capital Income NA NA NA 3.1
offering is fully subscribed. f-Rights offering in process. Tekla Healthcare Opps Fd THQ 20.12 18.57 -7.7 14.8 Fst Tr Hi Inc Lg/Shrt Fd FSD 18.27 17.02 -6.8 7.7 Dreyfus Strat Muni Bond DSM 8.42 8.47 +0.6 5.7 Nuveen CA Muni Value NCA 10.42 10.54 +1.2 3.9 Loan Participation Funds
g-Rights offering announced. h-Lipper data has been Tekla Life Sciences HQL 21.62 21.48 -0.6 24.5 Guggenheim Strat Opps Fd GOF 19.74 21.30 +7.9 10.2 Dreyfus Strategic Munis LEO 8.63 8.79 +1.9 5.7 Nuveen CA Quality Muni NAC 15.64 14.92 -4.6 5.3
Tekla World Hlthcr Fd THW 15.55 14.56 -6.4 9.4 Ivy High Income Opps Fund IVH 16.33 15.97 -2.2 9.5 Eaton Vance Mun Bd Fd EIM 13.74 12.68 -7.7 5.0 Prem12 Mo
adjusted for rights offering. j-Rights offering has Nuveen MD Qual Muni NMY 14.54 12.83 -11.8 4.9 Fund (SYM) NAV Close /Disc Yld
expired, but Lipper data not yet adjusted. l-NAV as of Tortoise Energy TYG 26.57 28.96 +9.0 3.0 Neuberger Berman HYS NHS NA 12.16 NA 7.7 Eaton Vance Mun Income EVN 13.50 12.95 -4.1 5.3 Nuveen MI Qual Muni NUM 15.41 13.70 -11.1 4.8
previous day. o-Tender offer in process. v-NAV is Tortoise MLP Fund N TG 17.59 18.12 +3.0 -0.8 NexPoint Credit Strat Fd NHF NA 23.05 NA 11.1 EV National Municipal Opp EOT 21.92 22.68 +3.5 4.5 Nuveen NJ Qual Muni NXJ 15.80 13.73 -13.1 5.1 504 Fund 9.74 NA NA 3.5
converted at the commercial Rand rate. w-Convertible Voya Gl Equity Div IGD 8.35 8.11 -2.9 24.3 Nuveen Credit Opps 2022 JCO 9.95 9.85 -1.0 NS Invesco Adv Mun Incm II VKI 12.20 11.51 -5.7 5.5 Nuveen NY AMT-Free NRK 14.55 13.20 -9.3 4.8 FedProj&TrFinanceTender 10.03 NA NA NS
Note-NAV (not market) conversion value. y-NAV and
Income Preferred Stock Funds Nuveen Gl Hi Incm Fd JGH 18.60 17.37 -6.6 8.3 Invesco Mun Incm Opps Tr OIA 7.57 7.89 +4.2 5.2 Nuveen NY Qual Muni NAN 15.14 14.10 -6.9 5.0 Invesco Sr Loan A 6.67 NA NA 4.4
market price are in Canadian dollars. NA signifies that
the information is not available or not applicable. NS Calamos Strat Fd CSQ 12.58 12.13 -3.6 29.0 Nuveen High Incm Dec18 JHA 10.12 10.04 -0.8 5.5 Invesco Mun Opportunity VMO 13.57 13.01 -4.1 5.9 Nuveen OH Qual Muni NUO 16.66 15.08 -9.5 4.6 Invesco Sr Loan B 6.67 NA NA 4.4
signifies fund not in existence of entire period. Cohen & Steers Dur Pfd LDP 27.30 26.79 -1.9 14.7 Nuveen High Incm Dec19 JHD 10.30 10.12 -1.7 5.9 Invesco Municipal Trust VKQ 13.56 12.77 -5.8 5.6 Nuveen PA Qual Muni NQP 15.19 13.55 -10.8 5.1 Invesco Sr Loan C 6.68 NA NA 3.6
Cohen & Strs Sel Prf Inco PSF 27.94 28.25 +1.1 15.4 Nuveen Hi Incm Nov 2021 JHB 10.18 10.07 -1.1 5.4 Invesco Qlty Mun Inco IQI 13.68 12.80 -6.4 5.4 6.67 NA NA 4.6
12 month yield is computed by dividing income
Pioneer High Income Trust PHT 10.85 10.00 -7.9 8.7 Invesco Inv Grade Muni VGM 14.06 13.40 -4.7 5.5 Nuveen VA Qual Muni NPV 14.42 13.14 -8.9 4.2 Invesco Sr Loan IB
dividends paid (during the previous twelve months for FT Interm Duration Pfd FPF 25.11 24.72 -1.6 14.8 PIMCO California Muni PCQ NA 17.19 NA 5.3 Invesco Sr Loan IC 6.67 NA NA 4.5
periods ending at month-end or during the previous Flaherty & Crumrine Dyn DFP 26.48 26.50 +0.1 13.6 Prud Gl Shrt Dur Hi Yd GHY 16.52 14.93 -9.6 7.8 Invesco Value Mun Incm Tr IIM 16.31 14.96 -8.3 4.8
Prudentl Sh Dur Hi Yd Fd ISD 16.72 15.26 -8.7 7.9 MainStay DefinedTerm MMD 20.30 20.07 -1.1 5.3 PIMCO California Mun II PCK NA 10.12 NA 5.5 Invesco Sr Loan Y 6.67 NA NA 4.6
fifty-two weeks for periods ending at any time other Flaherty & Crumrine Pfd FFC 20.45 21.40 +4.6 11.3 RiverNorth MP Lending RMPLX 24.97 NA NA NS
than month-end) by the latest month-end market price
John Hancock Pfd Income HPI 21.67 21.93 +1.2 5.7 Wells Fargo Incm Opps Fd EAD NA 8.75 NA 9.0 MFS Munl Inco MFM 7.40 7.20 -2.7 5.3 52 wk
adjusted for capital gains distributions. Wstrn Asset Glbl Hi Inco EHI NA 10.29 NA 9.4 Nuveen AMT-Free Quality NEA 15.09 13.85 -8.2 5.4 Prem Ttl Sierra Total Return:T SRNTX 25.06 NA NA NS
John Hancock Pfd II HPF 21.44 21.91 +2.2 5.2 Voya Senior Income:A 12.50 NA NA 5.4
Source: Lipper
John Hancock Pfd Inc III HPS 19.12 18.80 -1.7 5.2 Wstrn Asset High Inco II HIX NA 7.21 NA 8.9 Nuveen AMT-Free Mun NVG 16.42 15.39 -6.3 5.6 Fund (SYM) NAV Close /Disc Ret
Wstrn Asset Opp Fd HIO NA 5.13 NA 7.4 Nuveen Mun Credit Incm Fd NZF 16.10 15.21 -5.5 5.8 Voya Senior Income:C 12.48 NA NA 4.9
Friday, September 29, 2017 JHancock Pr Div PDT 15.97 16.87 +5.6 13.2 General Equity Funds Voya Senior Income:I 12.46 NA NA 5.7
52 wk LMP Cap & Inco Fd SCD 14.54 NA 16.6 West Asst HY Def Opp Fd HYI NA 15.55 NA 8.0 Nuveen Enhncd Mun Val Fd NEV 15.09 14.70 -2.6 5.5
Other Domestic Taxable Bond Funds Nuveen Intermed Dur Mun NID 13.79 13.38 -3.0 4.7 Specialized Equity Funds Voya Senior Income:W 12.51 NA NA 5.7
Prem Ttl Nuveen Preferred & Incm JPI 25.91 25.18 -2.8 10.1 Griffin Inst Access RE:L NA NA NA NS
Nuveen Pfd & Incm Opps Fd JPC 10.80 10.57 -2.1 14.0 Apollo Tactical Incm Fd AIF 17.43 16.21 -7.0 8.9 NuveenMuniIncoOpp Fd NMZ 13.47 13.61 +1.0 6.0 High Yield Bond Funds
Fund (SYM) NAV Close /Disc Ret
Ares Dynamic Credit Alloc ARDC NA 16.40 NA 7.5 Nuveen Muni Value Fund NUV 10.31 10.24 -0.7 3.7 Griffin Inst Access RE:M NA NA NA NS Griffin Inst Access Cd:A NA NA NA NS
Nuveen Pfd & Incm Secs Fd JPS 10.35 10.41 +0.6 17.2 Resource RE Div Inc:A 10.14 NA NA 5.4
General Equity Funds
TCW Strategic Income Fund TSI 5.80 NA 14.2 Barings Corp Investors MCI NA 15.79 NA 3.8 Nuveen Qual Mun Incm Fd NAD 15.42 14.19 -8.0 5.5 Griffin Inst Access Cd:C NA NA NA NS
Adams Divers Equity Fd ADX 17.68 15.21 -14.0 25.2 BlackRock Multi-Sector IT BIT 19.95 18.70 -6.3 9.6 Nuveen Sel Tax Free NXP 15.42 14.92 -3.2 3.7 Resource RE Div Inc:C 10.14 NA NA 4.6 Griffin Inst Access Cd:I NA NA NA NS
Boulder Growth & Income BIF 12.09 10.20 -15.6 27.1 Virtus Global Dividend ZTR 13.20 NA 28.1 Resource RE Div Inc:D 10.30 NA NA 4.9
Convertible Sec's. Funds BlackRock Taxable Mun Bd BBN 23.60 23.37 -1.0 6.6 Nuveen Sel TF NXQ 14.84 14.04 -5.4 3.6 PIMCO Flexible Cr I;Inst NA NA NA NS
Central Securities CET 31.09 25.85 -16.9 27.3 Doubleline Oppor Credit DBL NA 24.04 NA 8.1 NA 13.67 NA 5.8 Resource RE Div Inc:I 10.57 NA NA 4.9
AdvntClymrFd AVK 16.19 NA 20.1 PIMCO MuniFd PMF
Resource RE Div Inc:L 10.15 NA NA NS PionrILSInterval 9.70 NA NA 9.5
CohSteer Opprtnty Fd FOF 13.93 13.19 -5.3 16.7 Duff & Phelps Utl & Cp Bd DUC 9.77 9.24 -5.4 6.4 Pimco Muni Inc II PML NA 13.16 NA 5.8 NA NA NA 11.6
14.81 NA 23.9 AllianzGI Conv & Incm NCV 6.69 7.10 +6.1 18.3 Resource RE Div Inc:T 10.12 NA NA 4.6 WA Middle Mkt Dbt
Cornerstone Strategic CLM
AllianzGI Conv & Incm II NCZ 6.00 6.25 +4.2 18.4 EtnVncLtdFd EVV 15.16 14.03 -7.5 7.2 PIMCO Muni Inc III PMX NA 11.86 NA 5.8 WA Middle Mkt Inc WMF NA NA NA 11.5
EtnVnc TaxAdvDiv EVT 22.78 22.13 -2.9 19.2 Franklin Ltd Duration IT FTF NA 12.01 NA 10.6 Pioneer Mun Hi Inc Adv Tr MAV 11.93 11.55 -3.2 5.4 Resource RE Div Inc:U 10.15 NA NA 5.4
Gabelli Dividend & Incm GDV 24.01 22.39 -6.7 24.2 AllianzGI Div Incm ACV 22.38 21.49 -4.0 24.8 GuggenheimTaxableMuni GBAB 23.32 22.80 -2.2 6.5 Resource RE Div Inc:W 10.29 NA NA 5.2 Other Domestic Taxable Bond Funds
AllianzGI Equity & Conv NIE 22.27 20.70 -7.0 19.5 Pioneer Mun Hi Incm Tr MHI 12.83 12.03 -6.2 5.1 Capstone Church Capital 11.34 NA NA 1.1
Gabelli Equity Trust GAB 6.43 6.50 +1.1 27.1 Invesco High Incm 2023 IHIT 10.09 10.12 +0.3 NS Putnam Tr PMM 7.96 7.56 -5.0 5.3 SharesPost 100 25.73 NA NA -4.4
Genl American Investors GAM 42.33 36.02 -14.9 22.4 Calamos Conv Hi Inco Fd CHY 11.89 11.90 +0.1 20.3 John Hancock Investors JHI 18.73 18.15 -3.1 7.1 NA NA NA NS CION Ares Dvsfd Crdt;A NA NA NA NS
Calamos CHI 11.27 11.53 +2.3 24.1 PutnamMuniOpportunities PMO 13.31 12.63 -5.1 5.2 Tot Inc+ RE:L
CION Ares Dvsfd Crdt;C NA NA NA NS
Guggenheim Enh Fd GPM 8.72 8.56 -1.8 23.3 KKR Income Opps Fund KIO NA 17.90 NA 9.1 Wstrn Asset Mngd Muni MMU NA 14.00 NA 5.3 Versus Cap MMgr RE Inc:F 27.57 NA NA 4.5
HnckJohn TxAdv HTD 26.24 25.86 -1.4 14.1 World Equity Funds MFS Charter MCR 9.35 8.67 -7.3 8.6 WesternAssetMunTrFund MTT NA 22.71 NA 4.7 Versus Cap MMgr RE Inc:I 27.65 NA NA 4.9 CION Ares Dvsfd Crdt;I NA NA NA NS
Liberty All-Star Equity USA 6.65 6.03 -9.3 27.8 Alpine Tot Dyn Div AOD 9.89 9.00 -9.0 28.2 MFS Multimkt MMT 6.69 6.24 -6.7 8.6 Versus Capital Real Asst VCRRX 24.98 NA NA NS CNR Select Strategies 7.50 NA NA NS
30.58 21.83 -28.6 24.2 Single State Muni Bond
Royce Micro-Cap RMT 10.40 9.38 -9.8 29.7 Cdn Genl Inv CGI Nuveen Build Am Bd Fd NBB 22.16 21.47 -3.1 5.7 BlackRock CA Municipal Tr BFZ 15.28 14.51 -5.0 5.2 Wildermuth Endwmnt Str 12.69 NA NA 10.5 GL Beyond Income 3.67 NA NA NE
Royce Value Trust RVT 17.22 15.79 -8.3 34.5 China Fund CHN 22.20 20.35 -8.3 27.7 PIMCO Corporate & Incm PTY NA 16.78 NA 10.3 BlkRk MuniHldgs CA Qlty MUC 15.49 14.82 -4.3 4.9 Wildermuth Endwmnt S:C 12.54 NA NA 9.7 Palmer Square Opp Income NA NA NA 6.0
Source Capital SOR 44.12 40.22 -8.8 13.6 Clough Global Opp Fd GLO 11.78 11.16 -5.3 28.2 PIMCO Corporate & Incm PCN NA 17.43 NA 10.5 Blkrck MunHl NJ Qlty MUJ 15.62 14.58 -6.7 5.4 Wildermuth Endwmnt S:I 12.75 NA NA NS Resource Credit Inc:A 11.12 NA NA 6.4
Tri-Continental TY 28.72 25.55 -11.0 24.6 EtnVncTxAdvGblDiv ETG 17.99 17.20 -4.4 24.8 PIMCO HiInco PHK NA 8.32 NA 12.7 BlRk MuHldg NY Qlty MHN 14.82 14.09 -4.9 4.8 Income Preferred Stock Funds Resource Credit Inc:C 11.24 NA NA 5.7
Specialized Equity Funds EatonVance TxAdv Opport ETO 24.29 24.57 +1.2 24.7 PIMCO Inco Str Fd PFL NA 12.12 NA 8.9 BlkRk MuniYld CA Fd MYC 15.57 15.45 -0.8 5.0 The Relative Value:CIA VFLEX 25.37 NA NA NS Resource Credit Inc:I 11.14 NA NA 6.6
Adams Natural Rscs Fd PEO 22.86 19.65 -14.0 4.9 First Trust Dynamic Eur FDEU 20.03 19.42 -3.0 34.6 PIMCO Incm Strategy Fd II PFN NA 10.70 NA 9.0 BlkRk MuniYld CA Quality MCA 15.68 15.45 -1.5 5.0 Convertible Sec's. Funds Resource Credit Inc:L 11.11 NA NA NS
AllnzGI NFJ Div Interest NFJ 14.44 13.40 -7.2 16.2 Gabelli Glbl Multimedia GGT 9.22 9.68 +5.0 38.7 Putnam Mas Inco PIM 5.03 4.73 -6.0 6.6 BlkRk MuniYld MI Qlty MIY 15.43 13.96 -9.5 5.4 Calmos Dyn Conv and Inc CCD 20.80 20.62 -0.9 13.1 Resource Credit Inc:W 11.12 NA NA 6.2
AlpnGlblPrProp AWP 7.24 6.63 -8.4 32.5 GDL Fund GDL 11.62 10.20 -12.2 11.5 Putnam Premier Income Tr PPT 5.57 5.32 -4.5 5.7
ASA Gold & Prec Metals ASA 13.31 11.88 -10.7 -19.5 India Fund IFN 26.79 NA 16.8 Wells Fargo Multi-Sector ERC NA 13.42 NA 8.9
BlkRk Enh Cap Inco CII 16.42 15.60 -5.0 21.3 Japan Sml Cap JOF 14.15 12.55 -11.3 30.5 World Income Funds
BlkRk Engy Res Tr BGR 15.08 13.73 -9.0 1.4
BlackRock Enh Eq Div Tr BDJ 9.67 9.07 -6.2 22.8
Korea Fund KF
Mexico Fund MXF
45.61 40.46 -11.3 13.5
19.46 17.18 -11.7 10.2
Abeerden Asia-Pacific FAX NA 5.16 NA 8.1
Etn Vnc Short Dur Fd EVG 15.31 14.24 -7.0 7.0 Bonds | WSJ.com/bonds
BlackRock Enh Gl Div Tr BOE 14.41 13.56 -5.9 19.2 Morgan-Stanley Asia-Pac APF 19.65 17.24 -12.3 15.5 Legg Mason BW Glbl Incm BWG NA 13.44 NA 6.6
BlkRk Intl Grwth&Inco BGY 6.96 6.56 -5.7 19.4 MS China a Shr Fd CAF 27.08 23.86 -11.9 27.7 MS EmMktDomDebt EDD 9.00 8.04 -10.7 8.4
BlkRk Health Sci BME 35.20 36.46 +3.6 16.1 MS Emerging Fund MSF 19.40 17.38 -10.4 20.2 PIMCO Dynamic Credit PCI NA 23.06 NA 11.4 Global Government Bonds: Mapping Yields
BlackRck Rscs Comm Str Tr BCX 9.99 8.89 -11.0 16.8 MS India Invest IIF 38.78 34.24 -11.7 26.5 PIMCODynamicIncomeFund PDI NA 30.86 NA 13.4
BlackRock Science & Tech BST 26.10 24.43 -6.4 39.1 New Germany Fund GF 20.52 18.57 -9.5 37.3 PIMCO Income Opportunity PKO NA 26.35 NA 10.0 Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
BlackRock Utility & Infr BUI 21.00 21.04 +0.2 15.2 Swiss Helvetia Fund SWZ 14.03 12.77 -9.0 20.9 PIMCO Strat Income Fund RCS NA 9.73 NA 9.0
CBREClarionGlblRlEstIncm IGR 8.82 7.90 -10.4 1.8 Templeton Dragon TDF 23.35 20.80 -10.9 28.9 Templeton Emerging TEI 13.04 11.57 -11.3 5.3 selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Central Fund of Canada CEF 12.67 NA -8.3 Templeton Emerging EMF 18.40 16.49 -10.4 34.8 Templeton Global GIM 7.48 6.74 -9.9 6.4
ClearBridge Amer Engy CBA 8.57 NA 4.4 Virtus Total Return Fund ZF 13.60 13.04 -4.1 18.5 Wstrn Asset Emerg Mkts EMD NA 15.74 NA 7.2 Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
ClearBridge Engy MLP Fd CEM 14.84 NA -0.2 Voya Infr Indls & Matls IDE 16.59 16.43 -1.0 33.0 Wstrn Asset Gl Def Opp Fd GDO NA 18.23 NA 7.5 Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
Clearbridge Engy MLP Opp EMO 12.16 NA 0.8 Wells Fargo Gl Div Opp EOD 6.27 NA 19.3 National Muni Bond Funds 1.375 U.S. 2 1.475 s l 1.451 1.317 0.734
Clearbridge Engy MLP TR CTR 12.71 NA 6.4 Prem12 Mo AllianceBrnstn NtlMun AFB 14.94 13.96 -6.6 4.5
Cohen & Steers Infr Fd UTF 25.32 23.00 -9.2 17.6 Fund (SYM) NAV Close /Disc Yld Blackrock Invest BKN 15.86 14.96 -5.7 5.1 2.250 10 2.327 s l 2.307 2.129 1.556
C&S MLP Incm & Engy Opp MIE 11.10 10.43 -6.0 5.7 BlackRock Mun 2030 Target BTT 24.03 22.67 -5.7 4.1
Cohen & Steers Qual Inc RQI 13.45 12.56 -6.6 1.7 U.S. Mortgage Bond Funds BlackRock Municipal Trust BFK 14.46 14.28 -1.2 5.6 2.750 Australia 2 1.965 t l 1.987 1.848 1.599 49.0 53.7 86.4
BlackRock Income Trust BKT 6.69 6.28 -6.1 5.0 BlackRockMuni BLE 15.07 15.20 +0.9 5.7
CohnStrsPfdInco RNP 22.68 21.20 -6.5 13.3
Nuveen Mtg Opp Term Fd JLS 26.42 25.36 -4.0 5.2 2.750 10 2.847 t l 2.871 2.635 1.978 52.1 56.4 42.2
Cohen & Steers TR RFI 13.33 12.46 -6.5 2.1 BlackRockMuni Tr BYM 15.20 14.69 -3.4 5.2
CLSeligmn Prem Tech Gr Fd STK 21.54 22.34 +3.7 35.2 Investment Grade Bond Funds BlkRk MuniAssets Fd MUA 14.20 15.08 +6.2 4.5 0.000 France 2 -0.482 s l -0.489 -0.512 -0.617 -195.6 -193.9 -135.2
Duff & Phelps DNP 9.89 11.48 +16.1 21.1 Blackrock Core Bond Tr BHK 14.83 14.06 -5.2 5.5 BlkRk Munienhanced MEN 11.96 11.87 -0.8 5.5
BlkRk Credit Alloc Incm BTZ 14.83 13.57 -8.5 6.3 BlkRk MuniHldgs Inv MFL 14.76 14.81 +0.3 5.7 1.000 10 0.748 t l 0.772 0.661 0.191 -157.9 -153.5 -136.5
Duff&PhelpsGblUtilIncFd DPG 17.73 16.23 -8.5 3.5 John Hancock Income Secs JHS 15.50 14.83 -4.3 5.5
Eaton Vance Eqty Inco Fd EOI 14.47 14.02 -3.1 19.9 BlkRk MuniHldgs Qlty II MUE 14.12 13.93 -1.3 5.4 0.000 Germany 2 -0.686 s l -0.692 -0.749 -0.684 -216.0 -214.2 -141.8
Eaton Vance Eqty Inco II EOS 15.25 14.96 -1.9 17.2 MFS Inc Tr MIN 4.49 4.28 -4.7 9.0 BlkRk MuniVest MVF 9.68 9.70 +0.2 5.8
WstAstClymr InfLnkd Fd WIW NA 11.28 NA 3.5 BlkRk MuniVest II MVT 15.31 15.48 +1.1 5.7 0.500 10 0.466 t l 0.481 0.343 -0.115 -186.1 -182.6 -167.1
EtnVncRskMngd ETJ 9.93 9.43 -5.0 11.3 WstAssetClymr InflLnk Sec WIA NA 11.55 NA 3.1
Etn Vnc Tax Mgd Buy-Write ETB 16.25 16.75 +3.1 9.8 0.050 Italy 2 -0.123 t l -0.114 -0.023 -0.106 -156.5 -84.0
Eaton Vance BuyWrite Opp ETV 14.69 15.32 +4.3 11.3
Loan Participation Funds -159.8
Apollo Sr Fltg Rate Fd AFT 18.06 16.75 -7.3 7.3
Eaton Vance Tax-Mng Div ETY 11.91 11.66 -2.1 19.3 BlkRk Debt Strat Fd DSU 12.73 11.67 -8.3 6.9
Statement of Ownership, Management
and Circulation
2.200 10 2.116 t l 2.123 2.066 1.219 -21.1 -18.4 -33.6
EatonVanceTax-MngdOpp ETW 11.52 11.84 +2.8 19.1 BlackRock FR Incm Strat FRA 14.95 14.36 -3.9 5.7
EtnVncTxMngGlDvEqInc EXG 9.39 9.35 -0.4 19.9 1. Publication Title: The Wall Street Journal 0.100 Japan 2 -0.115 s l -0.117 -0.155 -0.287 -159.0 -156.7 -102.1
Blkrk FltRt InTr BGT 14.44 14.11 -2.3 5.5 2. Publication Number: 664-880
Fiduciary/Clymr Opp Fd FMO 12.73 12.92 +1.5 -7.6 BlackstoneGSO Strat Cred BGB NA 15.98 NA 8.4 3. Filing Date: October 1, 2017 0.100 10 0.065 t l 0.072 0.004 -0.084 -226.2 -223.5 -163.9
FT Energy Inc & Growth Fd FEN 24.16 24.65 +2.0 -0.3 Blackstone GSO Sr Float BSL NA 17.58 NA 6.6 4. Issue Frequency: Daily except Sundays
FstTrEnhEqtIncFd FFA 16.22 15.05 -7.2 21.2 Eagle Point Credit ECC NA 20.69 NA 9.8 or general legal holidays 2.750 Spain 2 -0.323 t l -0.318 -0.342 -0.205 -179.8 -176.8 -93.9
First Tr Engy Infr Fd FIF 19.29 18.77 -2.7 4.9 Eaton Vance FR Incm Tr EFT 15.51 14.62 -5.7 5.8 5. Number of Issues Published Annually: 304 1.450 10 1.607 t l 1.628 1.567 0.921 -71.9 -67.9 -63.5
First Tr MLP & Engy Incm FEI 14.80 15.25 +3.0 0.9 EatonVnc SrFltRate EFR 15.16 14.94 -1.5 6.0 6. Annual Subscription Price: $525.00
Gabelli Hlthcr & Well GRX 11.52 10.11 -12.2 4.4 Eaton Vance Sr Incm Tr EVF 7.16 6.62 -7.5 5.7 7. Complete mailing address of known 1.750 U.K. 2 0.456 s l 0.456 0.162 0.072 -101.9 -99.5 -66.3
Gabelli Utility Tr GUT 5.42 7.05 +30.1 15.7 First Trust Sr FR Fd II FCT 14.12 13.49 -4.5 6.1
GAMCOGlblGoldNatRscs&Inc GGN 5.48 5.61 +2.4 3.5 FT Sr Floating Rate 2022 FIV 9.78 9.69 -0.9 NS
office of publication:
1211 Avenue of the Americas, New York, NY 10036
4.250 10 1.362 t l 1.378 1.000 0.619 -96.5 -92.9 -93.7
GoldmanSachsMLPIncOpp GMZ 9.33 NA 6.8 Invesco Credit Opps Fund VTA 13.03 11.92 -8.5 7.3 8. Complete mailing address of the
Goldman SachsMLPEnergy GER 6.95 NA 4.3 Invesco Senior Income Tr VVR 4.88 4.49 -8.0 6.1 Source: Tullett Prebon
headquarters of general business
John Hancock Finl Opps Fd BTO 36.10 37.26 +3.2 40.1 Nuveen Credit Strt Inc Fd JQC 9.20 8.49 -7.7 7.4 offices of the publisher:
Macquarie Glbl Infrstrctr MGU 27.85 26.27 -5.7 28.5
NeubergerBermanMLPIncm NML 10.19 9.50 -6.8 9.7
NuvFloatRteInco Fd JFR 11.61 11.71 +0.9 6.7 1211 Avenue of the Americas, New York, NY 10036 Corporate Debt
Nuv Float Rte Opp Fd JRO 11.53 11.83 +2.6 7.1 9. Full names and compete address of
Neubrgr Brm Rl Est Sec Fd NRO 5.89 5.61 -4.8 8.2 Nuveen Senior Income Fund NSL 6.88 6.69 -2.8 7.0 Publisher: Dow Jones & Co. in that same company’s share price.
Nuveen Dow 30 Dynamic DIAX 17.79 16.96 -4.7 25.5 Pioneer Floating Rate Tr PHD 12.47 11.96 -4.1 6.1 1211 Avenue of the Americas, New York, NY 10036
Nuveen Core Eq Alpha JCE 15.69 15.54 -1.0 22.2 Voya Prime Rate Trust PPR 5.65 5.23 -7.4 6.0 Editor: Gerard Baker Investment-grade spreads that tightened the most…
Nuveen Diversified Div JDD 12.86 12.86 0.0 20.3 High Yield Bond Funds 1211 Avenue of the Americas, New York, NY 10036 Spread*, in basis points Stock Performance
Nuveen Engy MLP Fd JMF 11.82 12.06 +2.0 1.8 AllianceBernstein Glbl AWF NA 13.05 NA 6.9 Managing editor: Deputy editor: Michael W. Miller Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
NuvNASDAQ100DynOver QQQX 22.01 22.12 +0.5 25.1 Barings Glbl Short Dur HY BGH 21.40 20.60 -3.7 9.0 1211 Avenue of the Americas, New York, NY 10036
10. Owner: News Corporation Dell International DELL 5.450 June 15, ’23 159 –15 170 ... ...
1211 Avenue of the Americas, New York, NY 10036
Owners of Dow Jones & Company, Inc. are: Kennametal KMT 2.650 Nov. 1, ’19 79 –15 n.a. 40.34 0.60
ADVERTISEMENT News Corporation, 1211 Avenue of the Americas, Viacom VIA 4.375 March 15, ’43 252 –10 265 36.70 –0.14
New York, NY 10036
11. Known bondholders, mortgagees, and other VMware VMW 2.950 Aug. 21, ’22 90 –10 100 109.19 –0.01
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
security holders owning or holding 1% or more of
total amount of bonds, mortgages, or other
securities:
12. Tax Status:
None
Not applicable
Bank America
Biogen
Ibm Credit
BAC
BIIB
IBM
3.875 Aug. 1, ’25
2.900 Sept. 15, ’20
2.200 Sept. 8, ’22
82
39
38
–9
–9
–9
93
57
53
25.34
313.12
…
–0.43
1.01
…
13. Publication Name: The Wall Street Journal
14. Issue Date for Circulation Data: Manulife Financial MFCCN 4.061 Feb. 24, ’32 158 –9 166 ... ...
September 22, 2017
15. Extent and Nature of Circulation
BANKRUPTCIES Avg. No. No. of …And spreads that widened the most
of Copies Single
Each Issue Issue PepsiCo PEP 3.100 July 17, ’22 31 14 30 111.43 –0.19
During Published Equifax EFX 2.300 June 1, ’21 110 10 180 105.99 –0.36

Preceding Nearest to
12 Months Filing Date Walgreens Boots Alliance WBA 2.700 Nov. 18, ’19 49 10 53 77.22 –0.39

a. Total Number of Copies ....... 1,293,085 1,340,762 American Honda Finance HNDA 2.150 March 13, ’20 39 9 n.a. ... ...
!"#$ %$ !% &'())*'+($ ,-. /$ %$ !% b. Paid and/or Requested Circulation
&'())*'0$ /..$ %$ !% &'())*+1$ 2 2/! $ !% &'())*+&%$ 3.!% b1. Paid/Requested Outside- Nissan Motor Acceptance NSANY 2.150 Sept. 28, ’20 50 9 n.a. ... ...
4#. &&$ 56!.7 2.28 County Mail Subscriptions
,
Stated on Form 3541................... 88,273 83,109
AT&T T 5.875 Oct. 1, ’19 52 7 59 39.17 0.33
,
b2. Paid In-County United Technologies UTX 3.100 June 1, ’22 60 7 58 116.08 0.21
Subscriptions Stated on Form

! " " # " 3541............................................................ 0 0
Bnp Paribas S.A. BNP 7.195 June 25, ’49 285 6 n.a. ... ...
$% &! # ' $% &! # " ( & " )* # b3. Sales Through Dealers

# ,/#: ( ; < $
= High-yield issues with the biggest price increases…
" " & =
>&

>> $ ? and Carriers, Street Vendors,
! ! *& = = = & =
Counter Sales and Other
Non-USPS Paid Distribution.... 848,576 792,739 Bond Price as % of face value Stock Performance
" " &
" !/3 9'$ 91&' . *11 #%% 5#/- Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
. 8 @ $ B ! = & " $% &! b4. Other Classes Mailed
# = & =
Through the USPS.......................... 0 0
" " &
" ,4 9)$ 91&+ . *11 #%% 5#/- . 8 @ ' $ c. Total Paid and/or Re- Windstream Services WIN 7.750 Oct. 15, ’20 82.000 4.75 80.000 1.77 –2.75
B ! ! = & =
C ""&
! quested Circulation (Sum of Murray Energy MURREN 11.250 April 15, ’21 60.000 3.25 57.500 ... ...
& D " " #
! " @ $
?FG = 15b. (1), (2), (3), and (4) .......... 936,849 875,848
# ) H!> ! " & " & & ""& & " d. Free Distribution by Mail Bombardier BBDBCN 6.000 Oct. 15, ’22 97.625 2.13 n.a. ... ...
I I & $ B ! ! = & =
C GENONE 9.875
= "
C J& " *& ! && * " " #
!
d1. Outside-County as Stated Genon Energy Oct. 15, ’20 73.250 1.75 n.a. ... ...
on form 3541...................................... 10,444 14,727
" @ $
! ; ! " ! " ! K= J& " 5.375 June 1, ’20 1.75 29.000 ...
*& ! && * & = ! & = & "
d2. In-County as Stated on Pacific Drilling PACD 35.000 ...
Form 3541............................................. 0 0
K= J& " *& ! && * LJ& = $ =
d3. Other Classes Mailed Iheartcommunications IHRT 9.000 March 1, ’21 71.625 1.46 71.250 ... ...
H @ $ @ ' $ I & $ $
; I " " &

& ! &
! #% " ' $% &! # " Through the USPS.......................... 0 0 Valeant Pharmaceuticals International VRXCN 6.375 Oct. 15, ’20 100.344 1.34 98.625 ... ...
( & " )* #% / #
: $ = # & L F )M d4. Free Distribution Outside
Foresight Energy FELP 11.500 April 1, ’23 88.500 1.25 88.250 4.23 1.20
F > GO = #%C H
HHH*
& = ! ! 3:! *11 #%% 5#/- . 8 the Mail (Carriers or other
! .4 ##3
.% means)..................................................... 216,671 325,724
# " & $ !

" " &=
! &&= & " e. Total Free Distribution …And with the biggest price decreases

? I% PP I? & PH& L I ;O )* F &H&Q (Sum of 15d and 15e)................. 227,115 340,451
% & >> ; # " $ & &
" f. Total Distribution (Sum of Denbury Resources DNR 4.625 July 15, ’23 52.500 –1.50 47.250 1.34 2.29
& = =
"& " #% =
R & " 15c and 15f) ........................................ 1,163,964 1,216,299

C & $ !
H R $% &! # C H
?TT g. Copies not Distributed........... 129,121 124,463 LSC Communications LSCCOM 8.750 Oct. 15, ’23 103.000 –1.50 n.a. ... ...
HHH*
& =T
! "H= & " &&= /#: ! & H

F U &&=
= " " # D " " " # :
&
h. Total (Sum of 15g and W&T Offshore WTI 8.500 June 15, ’19 87.750 –1.25 n.a. 3.05 –12.86
15h)............................................................ 1,293,085 1,340,762
#% V & ! H ! " & == ! D & D &&=
i. Percent Paid and/or Verint Systems VRNT 1.500 June 1, ’21 97.859 –1.11 97.363 41.85 –0.95
& = " " " #
?
$V )W/ L/L : )W/ #'L) Requested Circulation (15c Freeport–McMoran FCX 5.450 March 15, ’43 93.438 –1.06 92.500 14.04 –2.64
)* )W/ W(LI$P/ WILPR( /XIV(/ WIP/ divided by 15g times 100)....... 80.49% 72.01%

(( 16. Publication of Statement of Ownership: Noble Holding International NE 6.050 March 1, ’41 68.500 –1.00 68.250 … …
, October 2, 2017 Pride International ESV 7.875 Aug. 15, ’40 85.000 –0.88 83.188 … …
X )* $ ( F FGF / I Y&Z : $ ( [ 17. Signature and title of Editor, Publisher,
\ / Y& )* $ ( GGF $* ; Business Manager or Owner: Joseph Salomone
& PH& )* $ ( [[GO :P ;[>; Director, Circulation Audit Compliance *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.
L I ;O )M F 18. I certify that all information furnished by me Note: Data are for the most active issue of bonds with maturities of two years or more
above is true and complete. September 30, 2017 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index New to the Market
22405.09 s 55.50, or 0.25% last week
Last Year ago
Trailing P/E ratio 20.61 20.30 2519.36 s 17.14, or 0.68% last week Trailing P/E ratio 24.22 24.45
Last Year ago
Public Offerings of Stock
High, low, open and close for each of P/E estimate * 18.89 17.66 High, low, open and close for each of P/E estimate * 19.19 18.52 IPOs in the U.S. Market
the past 52 weeks Dividend yield 2.28 2.56 the past 52 weeks Dividend yield 1.98 2.13 Initial public offerings of stock expected this week; might include some
All-time high 22412.59, 09/20/17 All-time high: 2519.36, 09/29/17 offerings, U.S. and foreign, open to institutional investors only via the
Rule 144a market; deal amounts are for the U.S. market only
Current divisor 0.14523396877348 Symbol/ Pricing
23000 2525 Expected primary Shares Range($)
pricing date Filed Issuer/business exchange (mil.) Low/High Bookrunner(s)
10/4 9/5 Rhythm Pharmaceuticals RYTM 6.7 14.00/ MS, BofA ML,
65-day moving average 22000 2450 Biopharmaceutical co. Nq 16.00 Cowen & Co
developing therapeutics
for the treatment of
gastrointestinal diseases
21000 2375 and obesity.
10/5 9/8 Switch Inc SWCH 31.3 14.00/ GS, JPM, BMO Cptl Mkts,
65-day moving average Owner and operator of N 16.00 WFS, Citi, Credit
20000 2300 data centers. Suisse, Jefferies
Week's high Lockup Expirations

DOWN UP 19000 2225 Below, companies whose officers and other insiders will become eligible
to sell shares in their newly public companies for the first time. Such
t
Monday's open Friday's close

200-day moving average
sales can move the stock’s price.
Friday's close Monday's open 18000 2150
t
Lockup Offer Offer amt Through Lockup

200-day moving average expiration Issue date Issuer Symbol price($) ($ mil.) Friday (%) provision
Week's low 17000 2075 Oct. 2 April 5, ’17 Schneider National SNDR 19.00 612.8 33.2 180 days
Bars measure the point change from Monday's open Oct. 3 April 6, ’17 Elevate Credit ELVT 6.50 92.7 –6.0 180 days
16000 2000 April 6, ’17 Okta OKTA 17.00 215.1 65.9 180 days
SO N D J F M A M J J A S SO N D J F M A M J J A S Oct. 7 April 10, ’17 Azul AZUL 20.06 643.2 36.8 180 days
Primary Oct. 8 April 11, ’17 Netshoes (Cayman) NETS 18.00 148.5 –26.9 180 days
NYSE weekly volume, in billions of shares market Composite
t
t
Financial Flashback Sources: Dealogic; WSJ Market Data Group

30
20 The Wall Street Journal, Oct. 2, 2012 IPO Scorecard
10 Mondelez International shares began trading after the Performance of IPOs, most-recent listed first
0 company’s spinoff from Kraft Foods. The part that % Chg From % Chg From
SO N D J F M A M J J A S retained the Kraft Foods name later merged with Heinz. Company SYMBOL Friday3s Offer 1st-day Company SYMBOL Friday3s Offer 1st-day
IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
PQ Grp Hldgs 17.25 –1.4 ... RYB Edu 28.50 54.1 10.0
PQG Sept. 29/$17.50 RYB Sept. 27/$18.50
Major U.S. Stock-Market Indexes Nasdaq Composite
Deciphera Pharmaceutical 18.99 11.7 7.6 Secoo 8.90 –31.5 –11.0
Latest Week 52-Week % chg s 69.04, or 1.07% DCPH Sept. 28/$17.00 SECO Sept. 22/$13.00
High Low Close Net chg % chg Low Close (l) High % chg YTD 3-yr. ann. Nightstar Thera 19.20 37.1 –20.0 Oasis Midstream LP 16.96 –0.2 1.3
Dow Jones
last week
NITE Sept. 28/$14.00 OMP Sept. 21/$17.00
Industrial Average 22405.63 22219.11 22405.09 55.50 0.25 17888.28 l 22412.59 22.4 13.4 9.5 NuCana 18.37 22.5 13.7 Zai Lab 27.00 50.0 50.0
NCNA Sept. 28/$15.00 ZLAB Sept. 20/$18.00
Transportation Avg 9934.81 9644.39 9914.35 209.97 2.16 7967.02 l 9914.35 22.7 9.6 5.3
6480 Roku 26.54 89.6 12.9 BEST 11.97 19.7 19.7
Utility Average 734.02 716.62 723.60 -3.03 -0.42 625.44 l 754.8 8.3 9.7 9.5 ROKU Sept. 28/$14.00 BSTI Sept. 20/$10.00
Total Stock Market 26148.62 25789.20 26148.54 221.72 0.86 21514.15 l 26148.54 16.4 12.3 8.4
Barron's 400 679.01 658.65 678.27 15.92 2.40 521.59 l 678.27 23.1 12.7 9.1 6420 Sources: WSJ Market Data Group; FactSet Research Systems
Other Stock Offerings
Nasdaq Stock Market
6360 Secondaries and follow-ons expected this week in the U.S. market
Nasdaq Composite 6497.98 6343.96 6495.96 69.04 1.07 5046.37 l 6495.96 22.3 20.7 13.0
Nasdaq 100 5980.22 5839.89 5979.30 46.98 0.79 4660.46 l 6004.38 22.6 22.9 13.9
None expected this week
6300 Off the Shelf
Standard & Poor's 22 25 26 27 28 29
500 Index 2519.44 2488.03 2519.36 17.14 0.68 2085.18 l 2519.36 16.2 12.5 8.4 September “Shelf registrations” allow a company to prepare a stock or bond for
MidCap 400 1799.04 1764.31 1795.94 27.29 1.54 1476.68 l 1795.94 15.7 8.2 9.1 DJ US TSM sale, without selling the whole issue at once. Corporations sell as
905.51 871.95 903.98 29.11 3.33 703.64 l 903.98 19.4 7.9 12.0 conditions become favorable. Here are the shelf sales, or takedowns,
SmallCap 600 s 221.72, or 0.86% over the last week:
Other Indexes last week Takedown date/ Deal value Registration
Issuer/Industry Registration date ($ mil.) (mil.) Bookrunner(s)
Russell 2000 1493.56 1445.02 1490.86 40.08 2.76 1156.89 l 1490.86 19.1 9.9 10.1
CoStar Group Sept. 28 $750.0 ... JPM, GS, Citi, BofA ML,
NYSE Composite 12209.45 12108.01 12209.16 57.36 0.47 10289.35 l 12209.15 13.9 10.4 4.3 Computers & Electronics Sept. 25,317 SunTrust, WFS
Value Line 539.96 528.80 539.31 9.03 1.70 455.65 l 539.31 11.5 6.5 3.8 26150 Intra-Cellular Therapies Sept. 27 $150.0 $350.0 JPM, Leerink Prtnrs
NYSE Arca Biotech 4207.64 4126.68 4203.32 36.85 0.88 2834.14 l 4232.9 24.7 36.7 10.3 Healthcare Sept. 2,316
NYSE Arca Pharma 548.02 538.90 544.89 -1.80 -0.33 463.78 l 549.2 6.6 13.2 0.6
Grupo Financiero Galicia Sept. 26 $550.0 ... BofA ML, UBS
26000 Finance Sept. 8,317
KBW Bank 99.60 96.11 99.26 2.23 2.30 70.61 l 99.33 40.1 8.1 11.4 Catalent Sept. 26 $287.6 ... MS, JPM, RBC Cptl Mkts,
PHLX§ Gold/Silver 87.54 84.64 84.65 -1.41 -1.63 73.03 l 96.72 -9.9 7.3 0.7 Healthcare June 6,316 BofA ML
25850
PHLX§ Oil Service 143.53 137.03 142.17 5.93 4.35 117.79 l 192.66 -13.1 -22.6 -19.3 Ascendis Pharma Sept. 26 $134.9 $400.0 JPM, BofA ML,
Healthcare March 22,317 Credit Suisse
PHLX§ Semiconductor 1172.89 1122.16 1171.74 22.15 1.93 802.88 l 1171.74 40.2 29.3 22.1
25700 Westlake Chemical PartnersSept. 26 $99.0 $500.0 UBS, Citi, Barclays,
CBOE Volatility 11.21 9.36 9.51 -0.08 -0.83 9.36 l 22.51 -28.4 -32.3 -15.9 Chemicals March 10,317 BofA ML
22 25 26 27 28 29
Philadelphia Stock Exchange September Kadmon Holdings Sept. 26 $80.3 $197.2 Jefferies, Piper Jaffray
Sources: SIX Financial Information; WSJ Market Data Group Healthcare Aug. 4,317
Sabra Health Care REIT Sept. 25 $336.0 ... Barclays, Citi, BMO Cptl Mkts,
Real Estate/Property Jan. 17,317 SunTrust, Credit Agricole,
International Stock Indexes Commodities and Mitsubishi UFJ,
Raymond James, UBS,
Latest Week 52-Week Range YTD
Currencies Morgan Stanley, Stifel
Last Week YTD
Region/Country Index Close % chg Low Close High % chg TherapeuticsMD Sept. 25 $70.1 $250.0 JPM
Close Net chg %Chg % chg
Healthcare Nov. 5,315
32 The Global Dow 2907.67 –0.07 2390.11 • 2914.34 14.9
DJ Commodity 585.74 -1.16 -0.20 3.26
DJ Global Index 376.53 0.07 311.55 • 377.41 15.5
TR/CC CRB Index 183.09 -0.48 -0.26 -4.89
DJ Global ex U.S. 254.05 –0.57 206.73 • 256.54 18.7
Crude oil, $ per barrel 51.67 1.01 1.99 -3.82
Public and Private Borrowing
Americas DJ Americas 608.28 0.59 503.67 • 608.28 12.6 Treasurys
Natural gas, $/MMBtu 3.007 -1.40 -0.46 -19.25
Brazil Sao Paulo Bovespa 74293.51 –1.45 57110.99 • 76004.15 23.4
Gold, $ per troy oz. 1281.50 -11.80 -0.91 11.43
Monday, October 2 Tuesday, October 3
Canada S&P/TSX Comp 15634.94 1.17 14509.25 • 15922.37 2.3 Auction of 13 and 26 week bills; Auction of 4 week bill;
Mexico S&P/BMV IPC 50346.06 0.06 44364.17 • 51713.38 10.3 U.S. Dollar Index 93.07 0.90 0.98 -8.94 announced on September 28; settles on October 5announced on October 2; settles on October 5
Chile Santiago IPSA 4055.19 0.98 3127.54 • 4055.19 25.8 WSJ Dollar Index 86.30 0.77 0.90 -7.14
Public and Municipal Finance
EMEA Stoxx Europe 600 388.16 1.29 328.80 • 396.45 7.4 Euro, per dollar 0.8465 0.0095 1.13 -10.95
Deals of $ 150 million or more expected this week
Stoxx Europe 50 3172.79 1.50 2730.05 • 3276.11 5.4 Yen, per dollar 112.50 0.50 0.45 -3.85
Final Total Rating Bookrunner/
Eurozone Euro Stoxx 388.99 1.32 317.93 • 392.06 11.1 U.K. pound, in dollars 1.34 -0.0096 -0.71 8.54 Sale maturity Issuer ($mil.) Fitch Moody’s S&P Bond Counsel(s)
Euro Stoxx 50 3594.85 1.51 2954.53 • 3658.79 9.2
52-Week Oct. 2 prelim. Triborough 400.0 N.R. N.R. N.R. Preliminary/
Austria ATX 3315.97 0.30 2383.39 • 3315.97 26.6 Low Close(l) High % Chg Bridge & Orrick H & S
Belgium Bel-20 4017.75 1.51 3426.21 • 4041.03 11.4
DJ Commodity 527.06 591.05 10.06 Tunnel Auth
France CAC 40 5329.81 0.92 4377.46 • 5432.40 9.6 l
Oct. 3 April 1, 2038 Columbus 294.6 AAA Aaa AAA Preliminary/
Germany DAX 12828.86 1.88 10259.13 • 12888.95 11.7 TR/CC CRB Index 166.50 l 195.14 -1.73
City- Bricker &
Greece Athex Composite 755.61 –2.37 565.53 • 858.08 17.4 Crude oil, $ per barrel 42.53 l 54.45 7.11
Ohio Eckler
Israel Tel Aviv 1421.04 0.08 1363.50 • 1478.96 –3.4 Natural gas, $/MMBtu 2.56 l 3.93 3.48 Oct. 3 Sept.27,2018 Milwaukee 180.0 N.R. N.R. N.R. Preliminary/
Italy FTSE MIB 22696.32 0.73 16217 • 22696 18.0
Gold, $ per troy oz. 1127.80 l 1346.00 -2.42 City- KattenMuchinZavisRosenman/
Netherlands AEX 537.06 1.71 440.51 • 537.06 11.2 Wisconsin Hurtado Zimmerman LLC
Portugal PSI 20 5409.58 1.87 4370.84 • 5409.58 15.6 U.S. Dollar Index 91.35 l 103.25 -2.46
Oct. 3 prelim. NYS Dorm 169.0 N.R. N.R. N.R. Preliminary/
Russia RTS Index 1136.75 1.20 960.32 • 1195.61 –1.4 WSJ Dollar Index 84.49 l 93.56 -0.08 Authority Hawkins
South Africa FTSE/JSE All-Share 55579.92 –0.47 48935.90 • 56655.88 9.7
Euro, per dollar 0.83 l 0.96 -4.86 Delafield & Wood
Spain IBEX 35 10381.50 0.74 8607.1 • 11135.4 11.0
Yen, per dollar 101.34 l 118.18 11.01 Oct. 3 prelim. NYS Dorm 1,561.1 N.R. N.R. N.R. Preliminary/
Sweden SX All Share 585.67 2.08 496.66 • 596.72 9.6 Authority Hawkins
Switzerland Swiss Market 9157.46 0.23 7593.20 • 9176.99 11.4 U.K. pound, in dollars 1.20 l 1.36 3.26
Delafield & Wood
U.K. FTSE 100 7372.76 0.85 6693.26 • 7547.63 3.2 Oct. 6 prelim. San Diego 204.5 N.R. N.R. N.R. J P Morgan
Asia-Pacific Real-time U.S. stock Assoc of Securities
Australia
China
S&P/ASX 200
Shanghai Composite
5681.60
3348.94
–0.01
–0.11
5156.6
3004.70
•
•
5956.5
3385.39
0.3
7.9 WSJ
.COM
quotes are available on
WSJ.com. Track most- Oct. 6 prelim.
Governments
San Diego 219.7 N.R. N.R.
LLC/—
N.R. Goldman &
Hong Kong Hang Seng 27554.30 –1.17 21574.76 • 28159.77 25.2 active stocks, new USD Co/—
India S&P BSE Sensex 31283.72 –2.00 25765.14 • 32575.17 17.5 highs/lows, mutual Source:Thomson Reuters/Ipreo
Japan Nikkei Stock Avg 20356.28 0.29 16251.54 • 20397.58 6.5 funds and ETFs.
Malaysia FTSE Bursa Malaysia KLCI 1755.58 –0.87 1616.64 • 1792.35 6.9 Plus, get deeper money-flows data and A Week in the Life of the DJIA
Singapore Straits Times 3219.91 –0.01 2787.27 • 3354.71 11.8 email delivery of key stock-market A look at how the Dow Jones Industrial Average component stocks did in the
South Korea Kospi 2394.47 0.24 1958.38 • 2451.53 18.2 data. past week and how much each moved the index. The DJIA gained 55.50
Taiwan Weighted 10329.94 –1.15 8931.03 • 10631.57 11.6
All are available free at points, or 0.25%, on the week. A $1 change in the price of any DJIA stock =
6.89-point change in the average. To date, a $1,000 investment on Dec. 31 in
Source: SIX Financial Information;WSJ Market Data Group WSJMarkets.com each current DJIA stock component would have returned $34,266, or a gain
of 14.20%, on the $30,000 investment, including reinvested dividends.
The Week’s Action
Consumer Rates and Returns to Investor Benchmark Yields and Rates Pct Stock price Point chg $1,000 Invested(year-end '16)
chg (%) change in average Company Symbol Close $1,000
U.S. consumer rates Selected rates Treasury yield curve Forex Race 2.67 6.16 42.41 Goldman Sachs GS $237.19 $1,000
A consumer rate against its 5-year CDs Yield to maturity of current bills, Yen, euro vs. dollar; dollar vs. 2.58 2.06 14.18 Exxon Mobil XOM 81.98 932
benchmark over the past year notes and bonds major U.S. trading partners 2.42 0.90 6.20 Intel INTC 38.08 1,074
Bankrate.com avg†: 1.44% 2.33 2.06 14.18 American Express AXP 90.46 1,237
Barclays 2.30% 3.75% 2.24 3.59 24.72 Home Depot HD 163.56 1,244
10%
Five-year CD yields 1.50%
t
Wilmington, DE 888-720-8756 WSJ Dollar index
s 1.47 2.23 15.35 Apple AAPL 154.12 1,352
3.00 5 1.46 2.82 19.42 UnitedHealth Group UNH 195.85 1,240
First Internet Bank of Indiana 2.30%
1.00 0.93 1.07 7.37 United Technologies UTX 116.08 1,079
Indianapolis, IN 888-873-3424 2.25 0 0.78 0.26 1.79 Cisco Systems CSCO 33.63 1,144
2.35%
s
t
0.50 Synchrony Bank Friday Euro
t
1.50 –5 Yen 0.72 0.68 4.68 J.P. Morgan Chase JPM 95.51 1,126
Federal-funds Morristown, NJ 800-903-8154 s
target rate 0.00 0.39 0.48 3.31 Travelers TRV 122.52 1,018
Goldman Sachs Bank USA 2.40% 0.75 –10 0.23 0.28 1.93 Caterpillar CAT 124.71 1,379
One year ago
t
New York, NY 855-730-7283 0.18 0.21 1.45 Chevron CVX 117.50 1,026
–0.50 0.00 –15
O N D J FMAM J J A S Popular Direct 2.40% 0.11 0.08 0.55 Microsoft MSFT 74.49 1,222
1 3 6 1 2 3 5 710 30 2016 2017
New York, NY 800-274-5696 –0.03 –0.05 –0.34 IBM IBM 145.08 898
2016 2017 month(s) years
–0.03 –0.03 –0.21 Walt Disney DIS 98.57 953
Yield/Rate (%) 52-Week Range (%) 3-yr chg maturity
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
–0.30 –0.32 –2.20 Visa V 105.24 1,357
–0.41 –0.86 –5.92 3M MMM 209.90 1,199
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 –0.72 –0.26 –1.79 Pfizer PFE 35.70 1,132
Prime rate* 4.25 4.25 3.50 l 4.25 1.00
Corporate Borrowing Rates and Yields –0.82 –0.41 –2.82 Verizon VZ 49.49 958
Libor, 3-month 1.33 1.33 0.85 l 1.34 1.10 Spread +/- Treasurys,
Yield (%) in basis pts, 52-wk Range Total Return
–0.87 –2.24 –15.42 Boeing BA 254.21 1,678
Money market, annual yield 0.27 0.29 0.26 l 0.36 -0.15 Bond total return index Last Wk ago Last Low High 52-wk 3-yr –1.04 –0.73 –5.03 DowDuPont DWDP 69.23 1,240
Five-year CD, annual yield 1.44 1.43 1.19 l 1.47 -0.04 –1.05 –1.38 –9.50 Johnson & Johnson JNJ 130.01 1,153
10-yr Treasury, Ryan ALM 2.328 2.262 -4.32 2.42 –1.06 –0.48 –3.31 Coca-Cola KO 45.01 1,115
30-year mortgage, fixed† 3.90 3.87 3.46 l 4.33 -0.34
DJ Corporate 2.973 2.992 1.82 4.30 –1.37 –1.26 –8.68 Procter & Gamble PG 90.98 1,109
15-year mortgage, fixed† 3.16 3.12 2.72 l 3.50 -0.21
Aggregate, Barclays Capital 2.550 2.530 38 38 47 -0.16 2.68 –1.40 –2.23 –15.35 McDonald’s MCD 156.68 1,318
Jumbo mortgages, $424,100-plus† 4.41 4.36 4.22 l 4.88 -0.20
High Yield 100, Merrill Lynch 4.977 5.077 313 309 490 7.782 4.481 –1.69 –1.10 –7.57 Merck MRK 64.03 1,114
Five-year adj mortgage (ARM)† 3.41 3.37 3.13 l 4.03 -0.36
Fixed-Rate MBS, Barclays 2.810 2.790 22 10 34 0.23 2.43 –1.75 –1.39 –9.57 Wal-Mart Stores WMT 78.14 1,156
New-car loan, 48-month 3.05 3.06 2.85 l 3.36 -0.17
Muni Master, Merrill 1.917 1.834 9 -4 18 0.876 2.754 –2.61 –1.39 –9.57 Nike NKE 51.85 1,031
HELOC, $30,000 4.74 4.76 4.57 l 5.22 0.35
EMBI Global, J.P. Morgan 5.422 5.400 308 308 407 4.151 5.954 –2.77 –0.69 –4.75 General Electric GE 24.18 783
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs. Sources: WSJ Market Data Group; S&P Dow Jones Indices. For more information on the Dow Jones
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 Industrial Average and the 30 industrials, please visit www.djindexes.com
MARKETS
Buyout Firms Drive Europe Deal Spree

More and bigger For Dealogic, acquiring pri- since 2007.
vate-equity firms take on the Hungry for Big Deals “With the region’s econo-
acquisitions expected nationality of the target for Largest European deals from July 1 through Sept. 30 that were backed by private equity mies stabilizing, companies
because of sector’s compiling merger data.
Target Acquirer Deal value, in billions
are now looking closer to
That appetite for acquisi- home to drive costs savings
large cash holdings tions comes as private equity Nets A/S Hellman & Friedman consortium $6.42 and efficiencies through
attracts a flood of new money M&A,” said Tariq Hussain, Eu-
BY BEN DUMMETT amid efforts by investors to Banco Popular* Blackstone $6.01 ropean M&A head for Jefferies
diversify from bonds and pub- International.
Copenhagen Airports Ontario Teachers, ATP $6.01
Buyout firms showcased lic equities to boost returns Still the pace of large trans-
their deal-making prowess in through alternative invest- Stada Arzneimittel Bain Capital, Cinven $4.29 actions—those valued at $10
the third quarter in Europe, a ments. The average buyout billion or more—involving a
potential sign of bigger acqui- fund would have more than Paysafe Group Blackstone, CVC $4.05
European company has slowed
sitions to come from the cash- quadrupled an investor’s *Blackstone is acquiring a majority stake of the bank's real estate portfolio, not the entire bank. through 2017 from four in the
rich group. money since the end of De- Source: Dealogic THE WALL STREET JOURNAL. first quarter to one in the lat-
Between July and the end cember 2000, according to est period, according to Dea-
of September, private-equity Preqin. An equivalent invest- amount of time to start gener- nesses appeal to private-eq- surement of M&A activity be- logic. That was Vantiv Inc.’s
and infrastructure investors ment in the S&P 500 index ating returns. uity firms because of the op- cause of the longer time $10 billion-plus pact in July to
were the acquirers in half of would have more than doubled “Given the capital private portunity they offer to boost frame. In the year to date, the acquire U.K. payments proces-
the 10 biggest pending and it, the data provider says. equity has to deploy, we ex- returns from cost cutting and value and number of deals are sor Worldpay Group PLC, the
completed European domestic At the end of June, the pri- pect an increase in larger other efficiency measures. up almost 12% and 6.8%, re- most high-profile of a recent
deals, according to Dealogic, a vate-equity industry had a to- deals,” said Dirk Albersmeier, Some analysts have suggested spectively, according to Dea- flurry of consolidation in the
data provider. Those include tal of $916 billion of capital to co-head of European mergers that Unilever’s spreads busi- logic, as activity continues to payments sector.
last week’s Hellman & Fried- invest, including the $23.5 bil- and acquisitions for J.P. Mor- ness could fetch up to $8.5 bil- benefit from the availability of Severin Brizay, head of
man LLC-led pact to acquire lion raised by Apollo Global gan. lion in a sale, while Akzo’s cheap financing, stronger eq- M&A for Europe, the Middle
Danish online payments pro- Management this summer in Unilever PLC’s planned sale specialty-chemicals business uity markets and improving East and Africa, at UBS Group
cessor Nets A/S for $6.42 bil- the biggest buyout fund ever. of its margarine and spreads could be worth a similar economic conditions. AG, said it was too early to
lion; Blackstone Group LP’s $6 That weighty cash pile is business, and the potential amount. Indeed, interest rates redraw conclusions about the
billion pact to acquire a major- pushing some private-equity sale of the specialty chemicals Overall in the third quarter, main near record lows and the slowdown. But if the trend
ity stake in the real-estate firms to seek bigger deals, in business by Akzo Nobel NV, M&A activity was solid as deal broad-based Stoxx Europe 600 continues it could signal
portfolio of Spanish lender part to avoid greater competi- the big Dutch paints maker, value and volumes involving a index is up 7.4% so far this boards and CEO unease over
Banco Popular Español SA; and tion among buyers for midsize over the coming months are European company rose year year. Meanwhile, the European the rising risk of overpaying
the $4.29 billion sale of Ger- companies, some bankers say. two large assets that buyout over year. That trend also was Central Bank in September for targets.
man generic-drug company Larger acquisitions also are a firms will likely pursue, M&A evident over the nine-month projected the eurozone econ- “Prices are high, which may
Stada Arzneimittel AG to Bain more efficient way to deploy bankers and lawyers say. period, which bankers con- omy to grow by 2.2% in 2017, [become] an impediment to
Capital L.P. and Cinven Ltd. funds over a reasonable Carve-outs from larger busi- sider a more accurate mea- which would be the fastest doing deals,” Mr. Brizay said.
Restaurateur Raises
$220 Million in a
Private-Equity Fund
BY CHARLES PASSY said USHG Chief Investment
Officer Mark Leavitt. If suc-
New York restaurateur and cessful, the businesses, which
Shake Shack founder Danny must conform to what USHG
Meyer has gone into the pri- calls its “enlightened hospital-
vate-equity business, raising ity” model, likely would go
$220 million in a fund that is in- public or be sold to private in-
vesting in companies that share vestors, said Mr. Leavitt, who is
his employee-centric focus. charged with running the fund.
The private-equity fund, So far, the fund has in-
called Enlightened Hospitality vested in just a handful of
Investments LP, will seek to fur- companies, with the focus on
ther expand Mr. Meyer’s busi- the food world. They include
ness into new regions and in- Salt & Straw Ice Cream, a
dustry sectors. The fund is West Coast-based chain, with
being run by Mr. Meyer’s Union 10 locations, that is known for
DAMIR SAGOLJ/REUTERS
Square Hospitality Group its “imaginative” creations,

(USHG), and includes outside in- and Resy Network, a restau-
vestors along with USHG itself. rant-booking app that takes a
“This is an opportunity to curated approach in helping
step out of the restaurant” users find a place to eat.
world, Mr. Meyer said in an in- The fund, Mr. Meyer said,
A smoggy street in Shengfang. A series of environmental regulations in February led to a reduction in Chinese smelting capacity. terview. also will look to nonfood sec-
The 59-year-old restaura- tors for future investments, re-
Metal Prices Hinge on China Congress

teur has earned a reputation as flecting his belief that “every
a forward-thinker. He launched
Union Square Cafe in Manhat-
tan, his signature establish-
BY DAVID HODARI growth target. get would come in the wake of commodities economist at ment, in 1985 when the Union
Shake Shack founder
“The key issues the market a recent spate of lackluster Capital Economics. Square neighborhood was far Danny Meyer aims to
The price at which indus- will be watching for at the economic data. Chinese Capital Economics predicts from the popular locale it is to-
trial metals such as copper congress will be to see if growth decelerated for a sec- that copper will end this year day. He created the fast-casual
invest in firms that
and zinc will trade for the rest [President Xi Jinping] lowers ond consecutive month in Au- at $5,800 a ton, a drop of Shake Shake burger-focused focus on employees.
of this year will likely be China’s growth target below gust, and it was on course for more than 10% from its price chain in 2004 before fast-ca-
set in October, at the Chi- 6.5%” and whether he will fur- a 0.2% deceleration in the Friday. French banks BNP sual was a dining buzzword.
nese Communist Party’s Na- ther reduce capacity of metals third quarter of 2017 from the Paribas and Société Générale Perhaps key to Mr. Meyer’s
tional Congress. smelters, said Robin Bhar, year’s first two. also have bearish price tar- reputation, however, has been business is a hospitality one.”
Optimism over Chinese eco- head of metals research at So- Key activity indicators— gets: Both predict further his emphasis on providing his While USHG has made in-
nomic growth helped power ciété Générale. such as industrial production, drops of at least 4%. staff with compensation and vestments in the past, such as
metals to multiyear highs in In February, the Chinese fixed-asset investment and re- Some analysts also don’t benefits beyond the industry in the fast-casual Tender
early September, but prices government announced a raft tail sales—all slipped more believe that China will follow norm. To that end, he elimi- Greens chain, Messrs. Meyer
have since given up some of of environmentally driven reg- than expected in August, Mor- through on cutting production nated tipping at his full-service and Leavitt said it made more
those gains, as the dollar ulations aimed at limiting the gan Stanley said in a note. capacity. restaurants, saying he wanted sense for the company to start
perked up and investors ques- smog that plagues the coun- For some analysts, metals “The way things often work to ensure all his employees, not a separate fund for a host of
tioned whether demand would try’s cities during the winter. had already traded beyond the is that policies like this one just waiters, are properly paid. reasons. Chief among them is
be enough to justify the rally. Those directives included cuts fundamentals that should set have one angle which conflicts Now, Mr. Meyer wants to that it allowed USHG to tap
Now market players will be to the capacity of metals their price. with the growth objective of bring those values and his into a large pool of money
monitoring the twice-a-decade smelters, and they have been a London Metal Exchange another policy,” said Nitesh business savvy, along with an from outside investors who
congress, where China’s gov- major factor in pushing up copper futures gained 10.5% Shah, a commodities strategist infusion of cash, to companies might not have been interested
erning body is expected to lay base metals prices—especially between the end of July and at ETF Securities. that take a similar approach. in investing in the company it-
out its economic aims and those of aluminum and zinc. Sept. 7, while over the same “You might get a shifting of That could translate into a self because it is more nar-
growth forecasts for the year China’s GDP growth target period, aluminum gained by capacity from one smelter to new revenue stream for USHG. rowly focused on fine dining.
ahead. is seen as a proxy for the 10.2% and zinc rose 12%. another—production may pop Restaurant-industry insid- USHG officials noted that a
China consumes about half health of the country’s con- “We see slowing growth in up elsewhere at another, more ers say the USHG-led fund fund provides a less compli-
of global metal produc- struction and auto industries, China towards the end of the efficient smelter,” he added, could get favorable terms cated structure when dealing
tion, and some analysts are both of which use large year and lower prices for most which would leave production when buying a stake in other with a large group of investors.
concerned that top party offi- amounts of base metals. of the base metals complex,” mostly unchanged and weigh companies because the busi- The fund also will generate
cials could cut the country’s A cut to China’s growth tar- said Caroline Bain, senior on prices. ness potentially profits from revenue for Mr. Meyer’s busi-
the tie with Mr. Meyer. ness because USHG will charge
“Danny Meyer is a brand,” investors a management fee,
Chicago Exchange Bid Has Competition said Arlene Spiegel, a New

York City-based restaurant
consultant.
The fund, which started in
which is a standard practice in
private equity. USHG declined
to identify the fund’s investors
or reveal the fee percentage.
If political opposition sinks the investors in a bid by his office with Mr. Olsen in Wash- cense when one goes on sale. 2016, will make investments in —Miriam Gottfried
the efforts of a Chinese-led client to buy the Chicago mar- ington and is also now lobby- Chicago executives say Ca- the $10 to $20 million range, contributed to this article.
group to buy the Chicago Stock ket, a person familiar with the ing alongside him. The bid sin and its co-investors have
Exchange, one suitor who has matter said. Mr. Olsen first would be “all American satisfied the regulatory re-
stirred up some of the contro- called Chicago exchange execu- money,” he said. quirements to buy the ex-
versy is looking to swoop in. tives with a competing bid in The Securities and Ex- change, but are still having to
A firm called Exchange December and mentioned that change Commission’s review of rebuff what they said are mis-
congressional opposition Casin’s proposal to buy the leading allegations stirred up
By Dave Michaels, would likely sink Casin’s offer, Chicago exchange has dragged by the lobbying effort against
Kate O’Keeffe people familiar with the mat- on for more than nine months. them. “This costs us and our
ALLISON MICHAEL ORENSTEIN FOR THE WALL STREET JOURNAL
and Alexander Osipovich ter said. SEC Chairman Jay Clayton, investors money in opportu-
“I and Sconset Strategies whose agency must approve nity costs, legal costs and
Capital LLC, which has lobbied represent a very substantial the sale, put the agency’s en- banker costs,” said John Kerin,
Congress for months to put group of American investors dorsement on hold in August the chief executive officer of
pressure on regulators to block who are interested in poten- after the White House cau- CHX Holdings Inc., the ex-
the deal, is interested in buy- tially purchasing the Chicago tioned against it, The Wall change’s parent. “It’s quite un-
ing the Chicago bourse if the Stock Exchange,” Mr. Olsen Street Journal reported Thurs- fortunate that this is how busi-
bid led by China’s Chongqing said in a Friday interview. “We day. The SEC’s three commis- ness is now done.”
Casin Enterprise Group Co. have been actively highlighting sioners now must vote to ap- Mr. Thomas said he began
falls through, according to lob- the flaws of the Casin Group’s prove or deny the transaction. lobbying against the deal with
byists and others familiar with bid.” The Chicago exchange han- Mr. Olsen in recent weeks. He
the matter. Exchange Capital’s bid, dles a sliver of U.S. equities previously worked for Rep.
Exchange Capital has since should it proceed, would in- trading, but its license to oper- Robert Pittenger (R., N.C.),
last year paid $170,000 to clude around a dozen inves- ate is valuable. Getting author- who has led the charge on
Sconset Strategies LLC, a tors, according to Chas ity to launch a new exchange is Capitol Hill against Casin’s
Washington firm run by Adam Thomas, a lobbyist at Thorn a drawn-out process, making it purchase of the Chicago
Olsen, who would be among Run Partners, which shares an attractive to buy an existing li- bourse. Danny Meyer launched Union Square Cafe in Manhattan in 1985.
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Barclays Loses Investors’ Love OVERHEARD Why CEOs of

Food Firms
Banks need a good story the low-rate world. The mar- The end of the third
Falling Behind
to explain what they are
about. Barclays PLC wants
to tell a tale of growth, but
Relative share-price performance
ket has got increasingly ag-
gressive with cheaper pricing
and looser terms. This
quarter is often a nervous
time in the market with
September being the weakest
Are Exiting
20%
its audience is struggling to clearly can’t last. Interest- month of the year and A cereal killer is stalking
suspend its disbelief. rate and currency trading, October the month of epic the executive offices of pack-
Stoxx
The U.K. lender’s stock is 10 600 Barclays’s other big strength, crashes. aged-food companies, with
down 13% this year while Eu- Banks has been laid low by a lack of Now, as Merrill Lynch Kellogg boss John Bryant
ropean banks in the Stoxx Credit volatility and client activity. analysts say, the “best reason being the latest victim.
600 index are up 11%. 0 Suisse Tim Throsby, head of the to be bearish in 4Q is there is Other companies where
There are a host of issues investment bank, said a mod- no reason to be bearish.” chief executives have left
that leave investors cold, but Deutsche est rise in revenue would Well, there are reasons, since the spring of 2016 or
they could be overcome if –10 Bank produce a huge gain in prof- which Merrill cites. The S&P are on their way out include
Barclays focuses on produc- itability. He also wants to re- 500 hasn’t lost 5% in 318 General Mills, Mondelez,
ing income for shareholders Barclays cycle capital out of old, low- trading days and the global Hormel, Hershey, Nestlé
–20
today rather than risk wast- return lending relationships market cap is up $18.5 trillion and Coca-Cola.
ing capital on trying to buy J FMAM J J A S into more credit for clients in that time, roughly the As recently as 2015, many
back market share for its in- Sources: FactSet; Reuters (photo) Barclays Chief Executive willing to give a lot more annual output of the U.S. of these companies saw
vestment bank while making THE WALL STREET JOURNAL. Jes Staley business to the bank. economy. strong investor demand for
a promise of future profits. But that has been the Few analysts appear their shares in a “boring is
The bank still is fighting nesses—U.K. retail banking, than some with unsecured mantra in investment bank- worried though. Standard beautiful” trade—a bet
U.S. authorities over mort- U.S. credit cards and invest- lending, but it won’t escape a ing for years already. It isn’t Chartered went to China and helped along by speculation
gage-bond mis-selling and ment banking—all face grow- downturn pain-free. hard to understand why in- expects “stronger political that there would be more in-
faces a U.K. fraud charge. Its ing risks or poor growth. In the U.S., Barclays has vestors may be skeptical. leadership” and “steady dustry consolidation like H.J.
chief executive, Jes Staley, U.K. retail banking, which increased its credit-card Barclays slashed its divi- economic growth in the Heinz’s purchase of Kraft
was a big plus point for in- can produce strong returns, lending at an annual rate of dend last year to help stabi- foreseeable future.” Foods. But industry funda-
vestors, but his position is a worry because of recent 25% since 2013, according to lize its balance sheet. With Barclays says the world is mentals have been horrific.
could be threatened by a U.K. rapid growth in consumer Berenberg. The cycle there is that done, the bank would do just fine. Of the 10 largest U.S.-
probe into his treatment of a credit. The disruption of turning and delinquencies better to recycle capital into “We do not see a plausible listed food companies by
whistleblower. Brexit, the threat of higher are on the rise. shareholders’ pockets rather catalyst that could upset revenue, not one outper-
Alone, these might not interest rates and a vanish- Lastly, in investment than chasing investment- valuations in risky assets for formed the S&P 500 in the
worry investors, but together ing of real household income banking, one of Barclays’s banking market share. That the rest of 2017.” That is past 12 months. An equal-
they add to concerns about growth all point to worsen- great strengths is high-yield would be a story investors reason enough to start weighted portfolio would
the underlying business. Bar- ing credit losses. Barclays loans and bonds. These mar- could believe in. looking. have lagged behind by 31
clays’s three main busi- has been more conservative kets have been booming in —Paul J. Davies percentage points before div-
idends. Six of those 10 com-
panies experienced lower
This Long-Haul Airline Disrupter Isn’t Built for Turbulence sales per share in the past 12
months than the previous
fiscal year.
If you have booked a new. In 2012 the airline as- through June were roughly Ryanair in Europe. These One reason is moribund
cheap trans-Atlantic flight Different Flight Paths tounded the industry by or- one-quarter lower than in combine a disruptive ap- food prices. Last month’s
with Norwegian Air Shuttle Budget airlines’ operating margins dering 372 planes. Since then the comparable period. proach to operations with a U.S. consumer-price index
ASA, you can relax: It proba- it has resembled a land-grab- Even so, there is little evi- conservative one to finances. for food eaten at home was
Ryanair 2016 23.1%
bly isn’t about to go bust. 2017 (forecast) 24.7% bing property company, us- dence of a cash crunch at Crucially, strong balance essentially unchanged from
Whether the Oslo-listed air- 23.2 ing its profits as cash depos- Norwegian: It had 5.8 billion sheets and fat margins have the spring of 2014.
line’s high-risk business Southwest its for highly leveraged plane krona ($720 million) at the given them the muscle to ex- Food companies have re-
17.2
model can withstand more easyJet 10.7 purchases. Many of these end of June, almost double pand through downturns, shuffled or pruned brands to
difficult market conditions is 8.5 equip its trans-Atlantic long- the level from a year before. when rivals are in retreat appeal more to consumers
doubtful. Norwegian 4.4 haul business. The company still seems to and customers hungry for and done expensive acquisi-
Michael O’Leary, the out- –2.2 The company’s growth have access to debt and bargains. tions, such as General Mills’s
spoken boss of European Note: Years through March 2017 and 2018 for model has showed signs of could also raise cash by sell- With its slim margins and 2014 purchase of organic-
Ryanair; years through September 2016 and
low-cost leader Ryanair 2017 for easyJet strain this year. Like Ryanair, ing planes. The real question leveraged balance sheet, tak- food company Annie’s. To re-
Holdings PLC, told journal- Source: FactSet Norwegian has faced crew is whether the company’s fi- ing advantage of a downturn ally move the needle, though,
ists in London last month shortages in short-haul. nancial model can survive an will be much harder for Nor- they will have to focus ruth-
that “Norwegian will go in business has poached pilots Whereas Ryanair has can- economic downturn or wegian. Frequent fliers may lessly on costs. Kraft Heinz’s
four or five months.” Norwe- from Ryanair. Crew shortages celed flights, risking the higher oil price. hope its ambitious project to aborted deal with Unilever
gian flatly denied it had fi- have forced the Irish carrier wrath of customers, Norwe- The airline operates a very disrupt the North Atlantic early this year is a sign of
nancial problems, and more to cancel thousands of flights gian leased planes complete different growth model to oligopoly thrives. History things to come—a trend that
recently identified a motive over the coming months. with crews. This was an ex- tried and tested low-cost car- suggests they shouldn’t get turnover in their executive
for Mr. O’Leary’s accusations: Norwegian’s finances do pensive solution: Operating riers such as Southwest Air- their hopes up. ranks may accelerate.
Its mushrooming long-haul look stretched, but this isn’t cash flows for the year lines Co. in the U.S. and —Stephen Wilmot —Spencer Jakab
MARKETS
THE TICKER | Market events coming this week
Monday Gasoline up 1.1 Aug., expected $42.9 bil.

Distillates down 0.8
Construction spending
Earnings expected*
July, previous down 0.6%
ISM non-mfg. index Estimate/Year Ago($)
Aug., expected up 0.4%
Aug., previous 55.3 Constellation Brands
ISM mfg. index Sept., expected 55.2 2.17/1.77
Aug., previous 58.8 Costco 2.01/1.77
Earnings expected* Yum China 0.56/0.52
Sept., expected 58.0
Estimate/Year Ago($)
Acuity Brands 2.41/2.21
Tuesday PepsiCo 1.43/1.40 Friday
Total vehicle sales RPM 0.84/0.83 Consumer credit
Domestically produced, at an July, prev. up $18.5 bil.
annual rate
Thursday Aug., expected n.a.
Aug., previous 16.1 mil.
Sept., expected 16.7 mil. Initial jobless claims Nonfarm payrolls
Previous 272,000 Aug., previous 156,000
Earnings expected* Expected 265,000
Estimate/Year Ago($)
Sept., expected 86,000
Lennar 1.01/1.01
EIA report: natural gas Unemployment rate
Paychex 0.60/0.60 Previous change in stocks in
billions of cubic feet
Aug., previous 4.4%
up 58 Sept., expected 4.4%
Wednesday
Mort. bankers indexes Factory orders Wholesale inventories
Purch., previous up 3% July, previous down 3.3% July, previous up 0.6%
QILAI SHEN/BLOOMBERG NEWS
Refinan., prev. down 4% Aug., expected up 1.0% Aug., expected up 1.0%
EIA status report Int’l trade deficit in

Previous change in stocks in
millions of barrels billions
Crude oil down 1.8 July, previous $43.7 bil.
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN

PARENTHESES) ADJUSTED FOR STOCK SPLITNOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF
ECONOMISTS
Yum China, operators of KFC and other fast-food chains in China, is scheduled to report quarterly results on Thursday.
Currencies
has averaged a 0.5% decline for more hawkish outlook surprised U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
the month. many investors who expected
4
Fri YTDchg Fri YTDchg
This year the S&P 500 rode that the central bank would hold Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
robust corporate earnings and off, given the recent string of Americas Vietnam dong .00004399 22730 –0.2
accelerating global growth to weak inflation readings. Argentina peso .0578 17.3130 9.1 Europe
rise 1.9% in September. Yet despite numerous Brazil real .3162 3.1627 –2.8 Czech Rep. koruna .04546 21.999 –14.4
The market glided through a potential stumbling blocks, the Canada dollar .8019 1.2471 –7.2 Denmark krone .1588 6.2984 –10.9
The number of times the S&P 500 has series of rally-threatening market only grew calmer over Chile peso .001562 640.10 –4.4 Euro area euro 1.1814 .8465 –11.0
Colombia peso .0003405 2936.90 –2.2 Hungary forint .003789 263.94 –10.3
closed out the third quarter events. Apple Inc., the largest the course of September. Ecuador US dollar 1 1 unch Iceland krona .009425 106.10 –6.1
U.S. company by market cap, The CBOE Volatility Index, or
at a record VIX, an options-based measure
Mexico peso .0548 18.2542 –12.0
.3063 3.265 –2.6
Norway krone .1256 7.9635 –7.9
.2739 3.6505 –12.8
MONEYBEAT
Peru new sol Poland zloty
of expected stock market Uruguay peso .03427 29.1800 –0.6 Russia ruble .01738 57.548 –6.1
swings, dropped below 10 for Venezuela b. fuerte .098465 10.1559 1.6 Sweden krona .1228 8.1465 –10.5
unveiled three hotly anticipated much of the last few weeks Asia-Pacific Switzerland franc 1.0331 .9680 –5.0
Turkey lira .2806 3.5637 1.1
iPhone models. The stock after briefly jumping above 15 in Australian dollar .7833 1.2767 –8.1
.0376 26.5875 –1.8
September Stinks for

Ukraine hryvnia
finished September down 6%. August. The gauge ended the China yuan .1507 6.6366 –4.4
UK pound 1.3399 .7463 –7.9
Hong Kong dollar .1280 7.8114 0.7
A war of words continued to quarter at 9.51, near its lowest Middle East/Africa
India rupee .01532 65.285 –3.9
Stocks? Not This Time

escalate between the U.S. and level on record. Indonesia rupiah .0000742 13472 –0.4 Bahrain dinar 2.6514 .3772 ...
North Korea. The White House —Ben Eisen Japan yen .008889 112.50 –3.9 Egypt pound .0567 17.6425 –2.7
and Congress punted an end-of- Kazakhstan tenge .002939 340.30 2.0 Israel shekel .2830 3.5335 –8.2
The stock market keeps on trading day of September, month debt ceiling deadline until ONLINE Macau pataca
Malaysia ringgit
.1243 8.0443
.2368 4.2225
1.6
–5.9
Kuwait dinar
Oman sul rial
3.3110 .3020 –1.2
2.5968 .3851 0.03
cruising. according to S&P Dow Jones December. And another attempt
New Zealand dollar .7210 1.3870 –4.0 Qatar rial .2691 3.716 2.1
The S&P 500 closed out the Indices. The last one was in to repeal Obamacare fell flat in For more 1.0 .2667 3.7502 –0.01
WSJ
Pakistan rupee .00949 105.410 Saudi Arabia riyal
third quarter by rising 0.4% 1996. the Senate. MoneyBeat blog Philippines peso .0197 50.888 2.6 South Africa rand .0738 13.5566 –1.0
Friday to a record, its 39th of September is typically the Finally, the Federal Reserve posts, go to Singapore dollar .7366 1.3576 –6.2
the year. That is only the fourth worst-performing month of the signaled that it is planning one .COM blogs.wsj.com/ South Korea won .0008731 1145.30 –5.2 Close Net Chg % Chg YTD%Chg
record ever achieved on the last year. Since 1950, the benchmark more rate increase this year. The MoneyBeat Sri Lanka rupee .0065325 153.08 3.1 WSJ Dollar Index 86.30 0.03 0.03 –7.14
Taiwan dollar .03297 30.330 –6.5 Sources: Tullett Prebon, WSJ Market Data Group
Thailand baht .03000 33.330 –6.9
MARKETS
THE DAILY SHOT By Lev Borodovsky and Amrith Ramkumar
The postcrisis home-

Cracks in the Housing Rally
S&P/Case-Shiller U.S. national home price index
price recovery is beginning
to look vulnerable. Housing
starts and sales are 200
slowing, while new-home
inventories have popped.
Slumping household
formation is undermining
demand at a time when 175
affordability is under
pressure, reflecting soft
wage growth. Interest rates
are, yet again, beginning to
rise, adding to concerns 150
about pricing.
A sharp downturn
appears unlikely: Invento-
ries remain generally low,
and Wall Street still is 125
sanguine about the
prospects for U.S. growth.
The mortgage deduction
appears to have survived Recession
this round of tax overhaul 100
discussions. But the best 2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17
days of this housing cycle
appear to be behind us. New privately owned housing units started* New-home sales, one-family houses*
2 million 1.0 million
WSJ
subscribers can get
The Daily Shot—
a chart-by-chart briefing
on markets and economics— 1 0.5
sent to their email
each morning. Subscribe at
wsj.com/newsletters
Recession Recession
0 0
’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17
Months of supply of new houses in the U.S. Yearly change in U.S. households† Housing affordability index Inventory of existing homes for sale
12 months 2 million 200 4 million
3
8 1
100 2
4 0
1
Recession Recession Recession Recession

0 –1 0 0
’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17
*Seasonally adjusted annual rate †Change from a year earlier; not seasonally adjusted
Sources: S&P Dow Jones Indices via Federal Reserve (home prices); U.S. Census Bureau via Federal Reserve (starts, sales, supply, households); National Association of Realtors (affordability, inventory) THE WALL STREET JOURNAL.
Guidance starts with hearing you out.

TD Ameritrade’s Financial Consultants take the time to understand what matters to you and why, before
discussing investment strategies. To help you find the plan that works for you, we want to get to know you first.
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