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The Wall Street Journal - 20 October 2017

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DJIA 23163.04 À 5.44 0.02%
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WSJ.com
FRIDAY, OCTOBER 20, 2017 ~ VOL. CCLXX NO. 94
* * * * * *
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10-YR. TREAS. À 5/32 , yield 2.323%
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‘Brokenhearted’ Kelly Defends President, Blasts Congresswoman
What’s
News
Business & Finance
enate Republicans adopted a budget for the
next fiscal year, clearing a
critical hurdle in the GOP push
to overhaul the tax code. A1
S
Italy’s Ferrero agreed
to buy Ferrara Candy and is
weighing a bid for Nestlé’s
U.S. candy business. B1
Unilever and Nestlé reported weak sales, ratcheting up pressure from investors for turnarounds. B3
The Dow closed up 5.44
points at a record
23163.04 after plunging
earlier in the session. B11
Verizon boosted its sales
and subscriber rolls, helped
by the carrier’s return to
unlimited data plans. B4
Chevron said it was
suspending drilling in
Iraqi Kurdistan. B6
Travelers’ earnings slid
as results were battered by a
severe hurricane season. B10
Blackstone’s earnings
climbed, boosted by strong
markets and new capital. B10
World-Wide
Tillerson described his
efforts to bridge differences with Trump, while
rejecting rumors of his departure. The secretary of
state also warned China
about trade imbalances and
a territorial dispute. A1
Kelly defended Trump’s
condolence call to an Army
widow and chastised a
lawmaker for commenting
on the conversation. A4
The deaths of four U.S.
soldiers in Niger have
prompted an FBI probe and
criticism from lawmakers. A4
Bush rejected Trump’s
trade and immigration
stances and denounced bigotry in an atypical speech
by the ex-president. A4
Trump will back a bipartisan health-care bill
only if it includes a series
of conservative measures,
the White House said. A4
Spain’s prime minister
is poised to take unprecedented steps to rein in
Catalonia over the region’s
push for independence. A6
German intelligence
warned that children radicalized by Islamic State
could carry out terrorist
attacks in Germany. A6
The FBI is probing a
Chinese business owner
with ties to a North Korean trade network. A8
Czech voters are expected this week to elect a
populist billionaire as the
next prime minister. A6
Opinion.............. A13-15
Sports........................ A12
Streetwise................. B1
Technology............... B4
U.S. News............. A2-5
Weather................... A11
World News....... A6-8
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
CALL OUT: White House Chief of Staff John Kelly on Thursday defended President Donald Trump’s phone call to an Army widow, and said
he was ‘stunned’ and ‘brokenhearted’ that Rep. Frederica Wilson, a Florida Democrat, said Mr. Trump had been insensitive in his conversation.
Referring to a past speech by the congresswoman, he said she followed ‘the long tradition of empty barrels making the most noise.’ A4
Senate Passes Budget Plan
The vote along party
lines clears hurdle in
Republican push to
overhaul the tax code
a procedure that Republicans
plan to use to rewrite the tax
code with just GOP votes. It
also allows the tax bill to
By Natalie
Andrews, Kristina
Peterson
and Richard Rubin
WASHINGTON—Senate Republicans adopted a budget for
the next fiscal year, clearing a
critical hurdle in the GOP push
to overhaul the tax code.
The Senate’s late Thursday
passage of the budget blueprint, in a 51-49 vote primarily
along party lines, helps unlock
lower projected revenue by up
to $1.5 trillion over a decade.
Sen. Rand Paul of Kentucky
was the lone Republican to
vote against the budget.
“Passing this budget is crit-
ical to getting tax reform done,
so we can strengthen our
economy after years of stagnation under the previous administration,” Senate Majority
Leader Mitch McConnell (R.,
Ky.) said on the Senate floor
Thursday.
Budget resolutions are nonbinding and don’t require the
president’s signature. They
generally reflect the parties’
priorities and are separate
from the spending bills that
actually fund the government.
“The only thing about this
that matters is preparation for
tax reform,” said Sen. Bob
Corker (R., Tenn.), a member of
the Senate Budget Committee.
The bill’s passage capped a
series of amendment votes
Democrats used to drive home
their argument that the GOP
tax rewrite would benefit the
country’s wealthiest citizens at
the expense of the middle
class.
“Looking at the GOP tax
plan, the American people
have to wonder: is now the
Please see BUDGET page A4
Trading Sinks, Stoking Fears
As stocks keep rising,
Dial Down the Volumes
low volume in U.S.
Three-month average daily trading volumes based to January 2013
and Europe suggests 160
investors are skeptical
MSCI USA
BY RIVA GOLD
MSCI Europe
140
Stock indexes continue to
hit records, yet the investors
pushing them there are trading less and less.
The number of stocks and
exchange-traded
products
changing hands in the U.S.
and Europe has fallen steadily
in recent months as ultralow
volatility, a lack of marketmoving news and the rising
popularity of passive investment funds have kept a lid on
trading volume.
The muted trading volume
could signal that investors are
holding back amid skepticism
that stocks have further to
climb—or that they are so
confident they feel no need to
sell.
Either way, the decline in
equity volumes is another
piece of bad news for banks
already beset by a steep drop
in fixed-income trading revenues.
This month, the average
daily trading volume across
120
100
80
2013
’14
’15
the NYSE, Nasdaq, NYSE
American and NYSE Arca is
roughly 12% below this year’s
average and is down by
around 22% from last year’s
average.
Average daily volume for
U.S. exchange-traded funds is
down 8.5% from a year ago,
according to research and advisory firm XTF. Trading volume on the MSCI Europe index—which tracks stocks
across 15 developed countries
i
i
As their leader speaks, Chinese ‘applaud’
on smartphones; 1,489 claps in 19 seconds
BY ALYSSA ABKOWITZ
’16
Source: Morgan Stanley Research based on Bloomberg data
Three Cheers for Xi Jinping!
Wait, Make That a Billion
i
Venezuela banned opposition governors from taking
office, replacing them with
ruling-party substitutes. A7
CONTENTS
Business News.. B3,6
Crossword............... A11
Heard on Street. B12
Life & Arts....... A10-11
Mansion............. M1-14
Markets............. B11-12
YURI GRIPAS/REUTERS
Wal-Mart is near a deal
to add Lord & Taylor to its
website, part of a broader
effort to build an online mall
to compete with Amazon. B1
Maverick is offering 0%
performance fees to some
investors as the hedge
fund posts losses. B1
EURO $1.1853
YEN 112.54
Tillerson
Balances
Trump’s
Goals and
His Own
BY MICHAEL C. BENDER
AND FELICIA SCHWARTZ
Trading volume has
fallen this year even as
stock indexes set records
amid low volatility and the
rise of passive investing. A1
Lyft said it raised $1 billion in a funding round led
by Alphabet’s CapitalG unit
as it eyes expansion. B1
HHHH $4.00
under Mr. Xi is exerting ever greater control over the econBEIJING—Give it up
omy
and
the
for President Xi Jincountry’s populace,
ping!
and its leading techIt’s so easy to do.
nology companies apJust vigorously tap on
pear willing to go
your
smartphone
along, if only as a
screen to “clap” for
cost of doing busihim.
ness.
That’s the latest
As the Communist
way Chinese are showXi Jinping
Party’s
congress
ing support for their
opened Wednesday,
leader, affectionately
nicknamed “Xi Dada,” and at videogame company Tencent
the same time participating in Holdings Ltd. released a free
the emergence of Mr. Xi as the game in which users try to
kind of preeminent leader outdo one another with hearty
China hasn’t seen in more than virtual applause for Mr. Xi. By
Please see CLAP page A9
a generation. The Chinese state
’17
THE WALL STREET JOURNAL.
in Europe—has fallen to its
lowest level in five years, according to Morgan Stanley.
Ed Campbell, a portfolio
manager at QMA, a multiasset
business of PGIM, said he
spent most of the summer
holding a bit more cash than
usual, ready to buy stocks on
an anticipated dip in the market that never materialized.
“Things looked overextended and due for a
pause…but summer came and
went and that never really
happened,” he said. In September, QMA decided to give
in to the onslaught of upbeat
economic data and slowly add
more positions in banks and
small-cap stocks instead of
embarking on a bigger buying
spree.
The collapse in trading volumes is closely tied to the recent fall in volatility. Measures of daily stock-price
movements have plumbed
multiyear lows. When markets aren’t moving, there are
typically fewer investors
scrambling to protect their
portfolios against further
losses or seizing an opportunity to buy assets that look
cheap.
“Volumes and volatility go
hand and glove,” said Phil Orlando, chief equity strategist
at Federated Investors.
With U.S. indexes rising
modestly for eight consecutive quarters, “there’s no need
to make radical adjustments
in your portfolio, so as a rePlease see STOCKS page A2
Hedge fund offers 0%
performance fees..................... B1
Blue-chip stocks edge higher
to another record................... B11
WASHINGTON—Secretary of
State Rex Tillerson described
how he seeks to manage an often-fraught relationship with
President Donald Trump, saying
he tries to deliver short-term
victories to an impatient commander-in-chief while focusing
on a longer horizon himself.
In an interview with The
Wall Street Journal Thursday,
Mr. Tillerson acknowledged the
contrasting styles of the two
men and described his effort to
bridge the gaps, while rejecting
swirling rumors of his impending departure. “I see those differences in how we think,” Mr.
Tillerson said in his State Department office. “Most of the
things he would do would be
done on very short time frames.
Everything I spent my life doing
was done on 10- to 20-year time
frames, so I am quite comfortable thinking in those terms.”
His solution: “Delivering the
incremental wins,” he said. “Incremental progress is taking
you toward the ultimate objective, which is, as I say is eight,
10 years down the road.”
Mr. Tillerson said one of his
top long-term priorities is shifting the balance of the trade and
national-security relationship
Please see TRADE page A8
China’s economy backs into
the future.................................... A8
James Mackintosh: Lessons
for those prone to froth...... B1
INSIDE
THE NBA’S
CONSTANT
GARDENER
SPORTS, A12
THE MODEL
FOR LUXURY
LIVING
MANSION, M1
A $20 Billion Startup Fueled
By Silicon Valley Pixie Dust
WeWork sells investors on communal offices; critics call it a real-estate play
BY ELIOT BROWN
When Adam Neumann pitches potential investors on his startup, WeWork Cos., he likes
to rev them up with a jaunt through his company’s shared office spaces.
Before arriving, the 38-year-old chief executive typically sends staffers a directive: “Activate the space.” WeWork’s employees swarm a
lounge to host an impromptu party with pizza,
ice cream or margaritas.
When Mr. Neumann and his guests walk in,
he often remarks how the office always seems
filled with life, according to several former
employees.
Fueled by showmanship, an expansive vision and the occasional shot of tequila, Mr.
Neumann has propelled the New York-based
office-space provider into being one of the
world’s richest startups. With a valuation of
more than $20 billion, or about 20 times annualized revenue, it is the fourth most valuable U.S. startup after Uber Technologies Inc.,
Airbnb Inc. and rocket company Space Exploration Technologies Corp., known as SpaceX.
WeWork’s valuation has galloped higher in
each of the past five years.
Mr. Neumann has dazzled tech investors
by portraying WeWork as a Silicon Valleystyle company that provides a “physical social network” for millennials. Top investors
include SoftBank Group Corp. and its techfocused Vision Fund, which added $4.4 bilPlease see OFFICE page A9
Lyft bulks up with $1 billion in funding............ B1
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Friday, October 20, 2017
THE WALL STREET JOURNAL.
* ****
U.S. NEWS
BY KATE DAVIDSON
After criticizing the Federal
Reserve for the past eight
years, Republicans have a
chance to change the course of
the central bank when President Donald Trump nominates
someone to take the helm in
early 2018. But they are divided
over which direction monetary
policy should take.
GOP efforts to subject the
Fed to more scrutiny and limit
its discretion gained traction in
the wake of the financial crisis,
and Republicans hammered Fed
officials over why they continued to keep interest rates so
low, saying the policy hurt savers and distorted markets.
Now, with the prospect of a
Republican-led tax cut and
faster economic growth on the
horizon, some in the party are
wary of a choice that could disrupt markets or cut off growth
by lifting rates higher to keep
inflation under control.
“I’m not sure there’s a clear
way that Republicans think
about the Fed,” said Tony
Fratto, who worked on economic issues in the George W.
Bush administration. “When
you ask, ‘What would you want
from a new Fed chair?’ I think
it’s a little bit all over the
place.”
The split is reflected in the
slate of candidates Mr. Trump
has homed in on as he nears a
decision.
On one side are two vocal
Fed critics, Stanford University
economist John Taylor and former Fed governor Kevin Warsh
who have chastised the central
bank for its easy-money policies and called for changes to
the way officials make and
communicate decisions—views
that align closely with the Fed’s
conservative GOP critics.
On the other side, two Fed
policy makers, Chairwoman
Janet Yellen and governor Jerome Powell, a Republican,
have favored a gradual approach to reversing the Fed’s
crisis-era stimulus programs—
policies that most Democrats
and moderate Republicans have
supported.
The president and Ms. Yellen
met Thursday about the job for
a half hour, according to the
White House.
Also in the mix is Gary
Cohn, Mr. Trump’s top economic adviser, who has given
few public clues about his
stances on monetary policy.
Asked whether he had a preferred candidate among the
five finalists, Mr. Trump said at
a news conference Tuesday, “I
have a great respect for all of
them.”
The president is expected to
announce a final decision
by Nov. 3.
AGENCE FRANCE-PRESSE/GETTY IMAGE
GOP Split on Next Federal Reserve Chief
President Trump and Chairwoman Janet Yellen met Thursday at the White House to discuss the job.
Meanwhile, he will receive
advice on the choice from different Republican camps.
Treasury Secretary Steven
Mnuchin is strongly backing
Mr. Powell, according to several
people familiar with the matter,
who noted the two have developed a good working relationship over the past seven
months working closely together on financial regulation
issues.
Mr. Powell “represents this
technical vision of what a monetary policy should be no matter who’s in power,” said Peter
Conti-Brown, an assistant professor at the University of
Pennsylvania’s Wharton School.
The Treasury Department
declined to comment.
Conservative Fed critics
have an important White House
ally in Vice President Mike
Pence.
Mr. Pence, who sat in on Mr.
Taylor’s interview with the
president last week, sponsored
a bill when he was in Congress
that would have eliminated the
Fed’s so-called dual mandate,
forcing it to focus only on
achieving low, stable inflation
rather than on also fostering
maximum employment.
Mr. Pence is also close to
Rep. Jeb Hensarling (R., Texas),
chairman of the House Financial Services Committee, who
pushed legislation to require
the Fed to adopt a mathematical formula for guiding interest
rates—something akin to the
Stanford economist’s Taylor
rule.
A spokeswoman for Mr.
Pence declined to comment on
whether he has a preferred
candidate.
Mr. Warsh, who served as a
Fed governor from 2006 to
2011 and worked as an adviser
to President George W. Bush,
has been favored by mainstream Republicans who see
him as a shrewd political operator who might not raise rates
too quickly if Mr. Trump’s policies spur faster growth.
Though no one in Mr.
Trump’s orbit is pushing for
Ms. Yellen, the president last
month sought input from
across the aisle. During a Sept.
13 dinner at the White House,
Mr. Trump asked Senate Democratic Leader Chuck Schumer
his opinion of Ms. Yellen, according to people familiar with
the matter. Mr. Schumer told
the president he thought Ms.
Yellen deserved to be renominated, the people said.
The White House had no
comment on Mr. Trump’s conversation with Mr. Schumer.
U.S. WATCH
Earthquake Drill in Seattle
ECONOMY
IMMIGRATION
ELAINE THOMPSON/ASSOCIATED PRESS
Jobless Claims Fall
Lawsuit Dropped in
After Storm Outages DACA Deportation
SURVIVAL LESSONS: Fourth-graders at Genesee Hill Elementary School practiced the drop, cover and hold-on skills during Thursday’s
international Great ShakeOut drill, which also included tsunami alerts in coastal areas and testing of emergency radio broadcasts.
Continued from Page One
sult you’re just sort of riding
on what you have,” he said.
The S&P 500 hasn’t had a
daily drop of 1% or more in
two months, while the CBOE
Volatility Index, known as
Wall Street’s fear gauge, earlier this month fell to its lowest reading in over 20 years.
Volatility is so low now
that the S&P 500 is on pace
this month for its tightest
monthly trading range since
January 2007, according to
FactSet data.
The sort of major events
that tend to drive big trading
volumes, including elections,
government-policy changes
and central-bank shifts, have
been few and far between this
year.
There have been elections
in Europe, but the results of
those have largely eased fears
of political instability in the
region. Meanwhile, economic
data across emerging and developed markets have been
remarkably resilient, while investors say the Federal Reserve has telegraphed its intentions to markets fairly
consistently.
“The major views in our
equity portfolios haven’t
changed much because the
macro environment hasn’t
changed significantly,” said
David Lafferty, chief market
strategist at Natixis Global
Asset Management.
The muted trading could
suggest a lack of investor
confidence among those with
cash to invest, as solid quarterly earnings and a growing
BRENDAN MCDERMID/REUTERS
STOCKS
Volatility is so low now that the S&P 500 is on pace this month
for its tightest monthly trading range since January 2007.
All Quiet
This year’s stock market has been
one of the calmest on record.
50
40
Euro STOXX 50
Volatility Index
CBOE Volatility Index
30
20
10
0
2013 ’14
’15
’16
’17
Sources: FactSet
THE WALL STREET JOURNAL.
economy are offset by rising
valuations and fears the bull
market can’t last much longer.
The S&P 500 is currently
trading at 18 times forward
The decline in equity
volumes is bad news
for banks beset by
lower trading revenues.
earnings, compared with 16.9
at the start of the year.
Given the lack of optimism,
“it’s a rally that hasn’t felt
like a rally,” said Antoine Lesne, head of SPDR ETF Strategy and research at State
Street Global Advisors.
The rise of passive investing—relative to money pouring into active managers and
hedge funds—may also be
weighing on trading volume.
“There’s still a very strong
trend of people doing indexing, and when you invest in
index funds you don’t need to
trade as often because they’re
not as volatile,” said Randy
Frederick, vice president of
trading & derivatives at the
Schwab Center for Financial
Research.
BlackRock Inc. and Vanguard Group, which have the
largest stable of ETFs by assets, now manage about $10.7
trillion combined.
“Many people are already
in the market, and if things
they own are going up and
making money, there’s no reason to sell,” Mr. Frederick
said. “And if you were sitting
on cash, coming in now is
pretty late to the game.”
The decline in trading volume isn’t good news for
banks that generate fees
when investors trade.
Last Thursday, J.P. Morgan
Chase & Co. reported a 4% fall
in revenue from equity trading in the third quarter. Goldman Sachs Group Inc.’s equity-trading revenue fell 7%
over that period, the company
said Tuesday.
For many, though, the glacial activity in equity markets
may still be an encouraging
sign.
“We are seeing strong drivers for growth and that is
driving investor confidence in
Europe, and driving more into
long-term positions rather
than short-term trades,” said
Ankit Gheedia, equity strategist at BNP Paribas.
The number of Americans filing applications for new unemployment benefits fell to the
lowest level in 44 years, reflecting power outages in storm-ravaged Puerto Rico and the U.S.
Virgin Islands that have disrupted the application process.
Initial jobless claims, a proxy
for layoffs across the U.S., fell by
22,000 to a seasonally adjusted
222,000 in the week ended Oct.
14, the Labor Department said
Thursday. The sharp drop obscures underlying trends in the
labor market.
Many applying for unemployment benefits in Puerto Rico and
the U.S. Virgin Islands, recently
devastated by Hurricanes Irma
and Maria, must submit paper
applications because power outages and infrastructure damage
are disrupting the electronics.
This has slowed what would
likely be an influx of unemployment applications to a trickle, a
Labor Department economist said.
Jobless claims data can be volatile. The four-week moving average, a steadier measure, dropped
9,500 to 248,250 last week.
— Sharon Nunn
RHODE ISLAND
Rosa Parks’s House
Will Return to U.S.
The house where Rosa Parks
lived after sparking the Montgomery bus boycott was on a
demolition list in Detroit until it
was saved by Ms. Parks’s niece
and a Berlin artist, who moved it
to Germany and reassembled it
in his yard, piece by piece.
Now, it is set to be returned
to the U.S. and displayed for
three months in Rhode Island. It
is a move the artist, Ryan Mendoza, and Parks’s family say is
necessary at a time when racial
justice is at the center of the
American conversation. Mr. Mendoza is working on the project
with Brown University.
Ms. Parks moved to Detroit
in 1957 amid death threats, two
years after she refused to give
up her bus seat to a white passenger in Montgomery, Ala. She
died in 2005.
—Associated Press
An immigrant who had been
shielded from deportation but
was sent back to Mexico has
dropped his lawsuit against the
Trump administration.
A federal judge in San Diego
on Thursday agreed to dismiss
the case filed by Juan Manuel
Montes.
The suit was taxing for the
23-year-old, who is now living in
Mexico, and he asked to drop it.
But he stands by the claim that
he was wrongly deported, said
Marielena Hincapie, executive director of the National Immigration Law Center, which represented Mr. Montes. “His decision
to voluntarily dismiss his case
does not change that,” she said.
The Justice Department declined to comment on the case.
Mr. Montes’s lawyers say he
was the first-known participant
in the five-year-old Deferred Action for Childhood Arrivals program to be deported under President Donald Trump.
—Associated Press
HARVEY WEINSTEIN
Los Angeles Opens
Sex-Assault Case
Los Angeles police say they
are investigating a possible sexual-assault case against Harvey
Weinstein—the first involving
the producer in the city.
A police spokesman said the
department has interviewed a
possible sexual-assault victim
who reported an incident that
occurred in 2013.
He says the investigation is
ongoing and he couldn’t answer
any questions about when the
interview or incident took place.
Police in New York and London are also investigating the
fallen movie mogul over allegations of sex abuse.
“Mr. Weinstein obviously can’t
speak to anonymous allegations,
but he unequivocally denies allegations of nonconsensual sex,”
his representative Sallie Hofmeister said.
Mr. Weinstein has been accused of sexual harassment or
abuse by more than three dozen
women.
—Associated Press
THE WALL STREET JOURNAL
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THE WALL STREET JOURNAL.
* * * *
Friday, October 20, 2017 | A3
U.S. NEWS
Navy sent vessel to
help after hurricane,
but bureaucracy has
slowed relief effort
BY DANIELA HERNANDEZ
SAN JUAN, Puerto Rico—
After Hurricane Maria ravaged
this island, leaving most hospitals here without reliable
power, the U.S. Navy sent a
massive floating hospital to
help fill gaps in the fragile
health-care system.
Hardly anyone has used it.
The USNS Comfort, a
70,000-metric-ton ship staffed
with roughly 800 medical and
support personnel and 250
beds, has treated only about
150 people since it arrived on
Oct. 3, said a U.S. Navy
spokesman aboard the vessel.
It costs about $180,000 daily
to operate the ship, according
to the Navy.
Comfort service members
said they initially feared demand would exceed their capabilities. Now they are frustrated they aren’t doing more,
said Capt. Kevin Robinson,
mission commander. He said
he reminds his staff “there is
no doubt that some of those
patients [they’ve treated]
wouldn’t be alive today if we
weren’t available.”
Hurricane Maria, a Category 4 storm, slammed into
the U.S. Commonwealth of 3.4
million people on Sept. 20
with sustained winds of 155
miles an hour, killing nearly
50 residents and leaving
250,000 without homes. Critical lifelines—telecommunica-
Infrastructure,
Corruption Cited by
Trump as Obstacles
WASHINGTON—President
Donald Trump gave his administration’s relief efforts in
Puerto Rico a perfect grade,
and blamed corruption and infrastructure deficiencies as obstacles to recovery, in a meeting on Thursday with the U.S.
territory’s governor at the
White House.
“I give ourselves a 10,” Mr.
Trump said, speaking alongside
Gov. Ricardo Rosselló. He acknowledged the devastation
the island suffered this summer from two hurricanes, which
tion links, power, and roads—
were
lost
or
severely
compromised, shutting down
hospitals and access to affected communities.
Government officials say
Puerto Rican hospitals are
aware the Comfort is ready to
take in critical patients. But if
Dr. Felix Valle-Avilés is an example, few know about it. Dr.
Valle-Avilés, who works at a
community health center and
a walk-in clinic in Arecibo on
the island’s northwest, said he
hadn’t received information
about the ship or how it can
be used.
Patients who show up at
the Comfort aren’t turned
away. But the normal path is
through San Juan’s Centro
Medico hospital, where doctors evaluate requests for
transfer from other hospitals,
contact a medical-operation
center which in turn dials the
ship. Patients are flown to the
vessel via helicopter from
other hospitals.
To slice through some bureaucracy, officials recently
changed the protocol to allow
regional hospitals to contact
the operation center directly,
said U.S. Army Col. Jose Garcia, who oversees medical coordination for the U.S. Department of Defense’s relief efforts.
Patient numbers have gradually climbed in recent days.
The DoD also stationed personnel outside of hospitals
around the island with satellite
phones to relay information
about hospitals’ power, water
and patient count, in case there
was need to evacuate or transfer patients, a U.S. official said.
Four U.S. Army crews were rehe said were “in many ways
worse than anything people
have ever seen.”
“Did we do a great job?” Mr.
Trump asked the governor.
“You responded immediately, sir,” Mr. Rosselló replied. He said he spoke “essentially every day” with top
administration officials.
Mr. Trump favorably contrasted the relief efforts under
way in Texas and Louisiana,
which were hit in August by
Hurricane Harvey, to the administration’s aid to Puerto Rico.
The efforts in Texas and Louisiana have been a “well-oiled machine,” he said, whereas he said
Puerto Rico’s already slipshod
transportation and power infrastructure has made the job
ANGEL VALENTIN FOR THE WALL STREET JOURNAL
Few Use U.S. Hospital Ship in Puerto Rico
USNS Comfort, a 70,000-metric-ton ship (above, in San Juan), has treated only about 150 people since it arrived in Puerto Rico on Oct. 3.
cently certified to land on the
ship during daytime, increasing
the ability to transfer patients,
a Navy spokesman said.
Still, U.S. emergency officials say the ship has been a
valuable backup for the island’s
nearly 70 hospitals, about a
third of which are reliant on
generators that offer spotty
more difficult.
“Puerto Rico’s a different
kind of situation because it requires infrastructure,” Mr.
Trump said. “The roads were in
really horrific shape because of
the storm, and sometimes because of before the storm.” He
also blamed “corruption on the
island.” Mr. Rosselló said, “If
there is a public official that is
purposely mishandling the food
that should be going to the
people of Puerto Rico, there is
going to be some hell to pay.”
The Trump administration
has faced criticism for its efforts from lawmakers in both
parties, who have said the
White House was too slow to
respond.
—Rebecca Ballhaus
power. The ship houses surgeons, pediatricians, an obstetrician, X-ray machines, a pharmacy and even a dental suite.
In hard-hit Humacao, in the
east of the island where Hurricane Maria made landfall,
Ryder Memorial Hospital
closed after one of its generators failed, according to Jaime
Plá-Cortes, the executive president of the Puerto Rico Hospital Association. The Oct. 4
power failure prompted the
evacuation of 29 patients by
helicopter to San Juan, where
five were transferred to the
Comfort, according to federal
health and defense officials.
Two days later, the Comfort
took in four patients after generators failed at Hospital
Menonita in Caguas, south of
the capital.
As it has moved along
Puerto Rico’s north coast, the
ship has also supplied hospitals
with more than 10 tons of food
and water, plus 29,100 liters of
oxygen. The island’s oxygenproducing plants were badly
damaged in the storm, leaving
many patients scrambling.
—Melanie Evans
contributed to this article.
The Bar for California Bar Stays High
BY SARA RANDAZZO
California’s highest court
ended months of debate over
whether the state makes it too
difficult to become a lawyer,
opting to keep the status quo
on how the bar-entrance exam
is scored for the foreseeable
future.
The California Supreme
Court said in a letter Wednesday that it was “not persuaded” by recommendations
that the passing score of the
exam be lowered. The decision
was denounced by deans of
California law schools, who
said many competent graduates would continue to suffer
the consequences of not being
able to become certified to
practice in the state.
The court acknowledged
that no standard-setting study
was conducted 30 years ago to
establish the current passing
score of 144—the second-highest in the nation. But it said
other states didn’t appear to
have used such an analysis in
setting lower benchmarks.
Most states share a common multiple-choice section of
the bar exam developed by a
national organization, but each
has the power to set its own
cut, or passing score. Only Delaware has a higher threshold
than California. The test also
includes an essay section.
New York, which admits the
most lawyers into the profession each year, uses a cut score
of 133; 16 other states set it at
135. Many states have been
moving toward a uniform
exam that helps test takers
transfer law licenses between
states, but California has re-
sisted such a move.
The court said the score
could be revisited, and encouraged the State Bar of California to keep studying the issue.
Bar-exam-passage rates for
lawyers have plummeted in
California in recent years, in
parallel with similar drops in
other states, causing alarm at
a time when the cost of law
school can easily leave graduates with six-figure debt loads.
Some states are beginning to
see rebounds in passage rates.
Just over 56% of first-time
test takers who took the July
2016 exam in California
passed, compared with highs
in the 60% and 70% range in
the recent past. When repeat
test-takers are included, 43%
passed the July 2016 test, and
35% in February. Results for
the most recent July exam are
expected next month.
The majority of deans from
the state’s 21 nationally accredited law schools have
banded together to argue that
the stringent standard disproportionately affects minority
students and doesn’t correlate
with better lawyers.
California allows graduates
of unaccredited schools to sit
for the exam, which some say
contributes to lower pass rates.
“I’m deeply disappointed
the court didn’t take this opportunity to make a shift toward what virtually every
other state in the country
does,” said Jennifer Mnookin,
dean of University of California, Los Angeles School of Law.
UCLA graduates do better than
the average on the bar exam,
with 82% of first-time test takers passing in July 2016.
Security Bolstered for White Nationalist
GAINESVILLE,
Fla.—A
speech on Thursday at the
University of Florida by a
white nationalist occurred
amid a heavy law-enforcement
presence.
State troopers and local police stood at barricades, sealing off a section of the campus
around the school’s Curtis M.
Phillips Center for the Performing Arts where Richard
Spencer spoke Thursday afternoon. A nearby state road was
closed off with dump trucks.
Some state troopers donned
riot uniforms, and all were
equipped with gas masks.
More than 1,000 people
gathered near the arts center
to protest against Mr. Spencer.
And in the auditorium where
he spoke to a crowd of a few
hundred, the audience spent
BRIAN BLANCO/GETTY IMAGES
BY CAMERON MCWHIRTER
AND DOUGLAS BELKIN
Police were out in force for Richard Spencer’s speech in Florida.
much of the event standing
and shouting over the speaker,
“Go home, Spencer!”
Considered a founder of the
alt-right movement, which
promotes white nationalism
and views immigration and
multiculturalism as threats to
white identity, Mr. Spencer repeatedly berated the hostile
crowd for their lack of civility.
Mr. Spencer’s frustration
came at his first major public
appearance since a rally in
Charlottesville, Va., with other
white nationalists that involved the death of a young
woman who was hit by a car
driven by a Nazi sympathizer.
The University of Florida
called out a show of force to
keep the peace. The university
said it paid more than
$500,000 for security. A university spokeswoman said
there were two arrests.
Later Thursday, Gainesville
police said they were investigating a single shot fired at
people who had attended a
protest. Police wouldn’t say
whether the incident was related to the protest. No one
was reported injured.
Florida Gov. Rick Scott had
declared a state of emergency
in Alachua County—home to
the university—to provide resources to local law enforcement responding to protests
and prevent violent clashes.
TOD’S DOUBLE T GOMMINO - $625
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A4 | Friday, October 20, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
Kelly Defends Trump’s Condolence Calls
BY REBECCA BALLHAUS
AND ELI STOKOLS
WA S H I N G T O N — W h i t e
House Chief of Staff John Kelly
defended President Donald
Trump’s comments to an Army
widow, saying the president
expressed his condolences to
the families of fallen soldiers
the “best way he could.”
Mr. Kelly, a retired four-star
general whose son was killed
by a land mine in Afghanistan
in 2010, said at a White House
briefing Thursday that he was
“stunned”
and
“brokenhearted” by Rep. Frederica
Wilson’s decision to publicly
comment on Mr. Trump’s
phone call to the widow of
U.S. Army Sgt. La David Johnson, who died in a deadly am-
bush in Niger.
“It stuns me that a member
of Congress would have listened in on that conversation,”
Mr. Kelly said. “I thought at
least that was sacred.”
Earlier this week, Ms. Wilson, a Florida Democrat, called
the president insensitive for
telling Sgt. Johnson’s widow,
Myeshia Johnson, that her
husband “knew what he
signed up for…but when it
happens it hurts anyways.”
Her account was backed up by
Sgt. Johnson’s mother, who
said she felt “disrespected” by
the president’s words.
Ms. Wilson’s office didn’t
immediately return a request
to comment. Ms. Wilson has
said she was in a car with Ms.
Johnson on the way to receive
her husband’s remains when
Mr. Trump called. She has
stood by her account of the
conversation.
Mr. Trump on Wednesday
denied the congresswoman’s
characterization of his call to
Ms. Johnson. “I didn’t say
what that congresswoman
said, didn’t say it at all,” Mr.
Trump said.
In his comments Thursday,
Mr. Kelly confirmed some of
the words Ms. Wilson said she
heard in the president’s call.
“There’s no perfect way to
make that phone call,” he said.
Mr. Kelly likened Ms. Wilson to “empty barrels making
the most noise,” recounting a
2015 dedication of an FBI field
office in Miami where the congresswoman touted her own
efforts securing funding for
the building, rather than
praising the office’s namesakes: Two agents killed during a shootout.
“We were stunned, even for
someone that is that empty a
barrel,” he said.
Mr. Kelly’s second appearance at a White House briefing
as chief of staff came as the
administration sought to quell
the controversy over the president’s conversation with Ms.
Johnson as well as over his
previous remarks about calls
to families.
Mr. Trump said earlier this
week that he planned to call
the families of the four Americans killed in combat in Niger
and incorrectly said that most
presidents hadn’t made any
calls to families. In defending
that statement, Mr. Trump
said that Mr. Kelly was among
the parents that former President Barack Obama didn’t call.
Several families of deceased
soldiers have disputed Mr.
Trump’s assertion that he has
called every family of a U.S.
soldier who was killed during
his presidency. And on
Wednesday, the White House
said it had sent a check for
$25,000 to the father of an
Army sergeant, after the
Washington Post reported that
the president in June had
promised to send the check
but never followed through.
The White House called the report “disgusting.”
On Thursday, Mr. Kelly confirmed that Mr. Obama didn’t
call his family after the death
of his son, Marine 2nd Lt.
Robert Kelly. “That was not a
criticism,” he said. “That was
just to simply say I don’t believe President Obama called.
That’s not a negative thing.”
Mr. Kelly said presidents
can elect to call or send letters
to the families of fallen soldiers. He said he initially advised Mr. Trump not to make
calls to the family members of
the four Green Berets killed in
Niger, but said the president
“very bravely” did so anyway.
Mr. Kelly said that the comment Mr. Trump ultimately
made to Ms. Johnson was
based largely on Mr. Kelly’s recounting of what a general
said to him after his son was
killed.
over their struggle to answer
questions about the incident.
U.S. military officials said
Thursday that they are still
trying to piece together a
timeline of what happened,
while lawmakers impatient for
information criticized the Pentagon and White House for a
lack of transparency.
The FBI’s involvement
comes amid an absence of details on the ambush, which has
become the center of a political firestorm over how President Donald Trump has interacted with relatives of the
dead soldiers.
The involvement of the FBI
in the probe of a military oper-
ation gone awry isn’t unprecedented, said FBI officials. The
FBI has the authority to take
over the investigation but has
yet to do so, they said.
FBI investigators are helping gather and evaluate evidence about the militants considered responsible for the
ambush and how members of
the group learned of the joint
U.S.-Nigerien patrol.
Questions about the operation, and the mission of the
Green Berets in Niger, have
been mounting in recent days.
The questions center on
whether the U.S. force had adequate resources and whether
its mission was well-defined.
The U.S. troops in question
depended on the French military for air support, and used
aircraft flown by contractors
to evacuate the injured, Pentagon officials said. The U.S.
force also relied on intelligence from a demoralized Nigerien military in communities
where villagers feared that
providing the government with
information could lead to a
death sentence from militants,
a Nigerien official said.
WASHINGTON
WIRE
BUDGET
By Ben Kesling in
Washington and
Julian E. Barnes in
Stuttgart, Germany
SOCIAL MEDIA
Bill Raises Disclosure
For Political Ads
Two senior Senate Democrats
introduced new campaign-finance
legislation that would force
greater disclosure about the political advertising that runs online, responding to concerns
about alleged Russian meddling
in the 2016 election.
Sens. Amy Klobuchar of Minnesota and Mark Warner of Virginia on Thursday unveiled the
Honest Ads Act, a bill that mandates large digital platforms
keep a public repository of paidpolitical advertising that appears
on their sites.
“The companies we’re talking
about here are really iconic American companies—they’re some of
the greatest stories in 21st-century success,” Mr. Warner said.
“But these companies in many
ways rely upon the trust of all of
us who use these platforms.”
A Facebook spokesman said
this week: “We are open to
working with lawmakers and reviewing any reasonable legislative proposals.”
—Byron Tau
FOREIGN RELATIONS
Ex-CIA Chief Rates
Likelihood of War
John Brennan, a former director of the Central Intelligence
Agency, estimated this week
that the U.S. has at least a 20%
likelihood of becoming engaged
in military conflict with North
Korea amid President Donald
Trump’s discord with North Korean dictator Kim Jong Un.
“I think the prospects for military conflict in the Korean Peninsula are greater than they have
been in several decades,” said
Mr. Brennan, who headed the
agency during Democrat Barack
Obama’s administration. “I don’t
think it’s likely or probable, but if
it’s a one in four, or one in five,
chance, that’s too high.”
—Erica Orden
Continued from Page One
time to tilt the scales even further in favor of big corporations and the very rich?” Senate Minority Leader Chuck
Schumer (D., N.Y.) said on the
Senate floor Thursday.
The Republicans released a
framework last month that
sketched out a range of tax
changes—including
lower
taxes on corporate profits, incentives for businesses, fewer
and lower individual income
tax brackets and the end of estate taxes—with the goal of
simplifying the code and
boosting the economy.
The House passed its own
budget earlier this year. White
House aides and some Senate
Republicans have been urging
the House to simply take up
the Senate budget and pass it.
An amendment passed late
Thursday allows the House to
take up the Senate-passed bill
version and likely avoids the
need for a conference.
After the Senate passed its
budget, House Speaker Paul
Ryan (R., Wis.) released a
statement saying the bill keeps
Republicans “on track to enacting historic tax reform,” indicating the House would take
up the measure.
The Republicans have yet to
release tax legislation. Sen. Orrin Hatch (R., Utah), chairman
of the Finance Committee, said
he hoped to release his tax
plan by early November.
“Deficits matter, and the
taxes that we address ought to
be about growing the economy
that actually create more revenues toward reducing the deficit,” said Sen. Jerry Moran (R.,
Kan.).
The Democrats criticized
the plan as a giveaway to the
rich because a number of proposed changes, including lower
business tax rates and a repeal
of the estate tax, would benefit the top sliver of wealthy
households. Before the budget
passed, Senate Democrats proposed several amendments,
most of which failed.
Sens. Maria Cantwell of
An Army team transferred the remains of Staff Sgt. Dustin Wright, who was killed in Niger, at Dover Air Force Base, Del., on Oct. 5.
“These four soldiers being
killed and most people not
knowing what they were up to
is a game changer,” said Sen.
Lindsey Graham (R., S.C.), a
member of the Senate Armed
Services Committee. “I’m concerned that we’re not regularly
briefed about operations.”
Committee Chairman John
McCain (R., Ariz.) said he
hadn’t been properly informed
by the Pentagon about the
mission in Niger, that he has
expressed his anger to Defense
Secretary Jim Mattis and
threatened to use legislative
measures to force compliance
with demands for information.
“We can hold up nominees,”
Mr. McCain said.
Hours later, Mr. Mattis’s
spokeswoman Dana White said
the Pentagon was being trans-
parent with Congress and that
a military general traveled to
Capitol Hill on Thursday to
brief lawmakers.
In Niger, the small U.S. force
has been working to improve
the ability of Nigerien counterparts to battle jihadist groups
in southwest Niger.
The joint U.S.-Nigerien patrol
on Oct. 4 was picking up supplies in a village in the area and
members decided to engage
with local leaders while there,
officials said. Among questions
U.S. investigators are asking is
whether villagers purposely
sought to delay the troops’ departure, two officials said.
—Nancy A. Youssef
and Del Quentin Wilber
in Washington and Joe
Parkinson in Abuja, Nigeria,
contributed to this article.
Prospects Cloudy
For New Health Bill
BY STEPHANIE ARMOUR
AND KRISTINA PETERSON
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
The Federal Bureau of Investigation has joined the
probe into how a group of militants thought to be Islamists
killed four American soldiers
in Niger two weeks ago, a
move that comes as U.S. officials face growing criticism
STAFF SGT. AARON J. JENNE/U.S. AIR FORCE/ASSOCIATED PRESS
Soldiers’ Deaths
In Niger Fuel FBI
Probe, Criticism
The budget blueprint was passed in the Senate late Thursday.
Washington and Chris Van
Hollen of Maryland forced a
vote on whether to bar a tax
rewrite from ending or limiting the federal deduction for
state and local taxes. House
Republicans are considering
abolishing the popular deduction but may preserve part of
it. The Senate blocked the
amendment Thursday on a
procedural motion in a partyline vote.
An amendment by New Mexico Sens. Tom Udall and Martin
Heinrich passed to provide resources in rural communities to
offset property-tax revenue lost
due to the presence of tax-exempt federal lands.
The Senate rejected, by a
7-93 vote, an amendment from
Mr. Paul that would have replaced the $1.5 trillion tax cut
with a $2.5 trillion cut.
The Senate voted down an
amendment that would have
prevented a future fast-track
vote on Arctic drilling. On the
48-52 vote, Sen. Joe Manchin
(D., W.Va.) voted with the Republicans; Sen. Susan Collins
(R., Maine), voted with the
Democrats.
Sen. Lindsey Graham (R.,
S.C.) acknowledged that passing tax legislation would be
more challenging than approving a budget. “We’re at the
bottom of the mountain and
we’ve got to keep climbing to
the top,” he said.
WASHINGTON—President
Donald Trump will support a
bipartisan bill on health care
only if it includes a series of
conservative measures that Republicans sought in their failed
effort to repeal the Affordable
Care Act, a White House
spokesman said on Thursday, as
two senators officially unveiled
the legislation without many of
those demands.
Sens. Lamar Alexander (R.,
Tenn.) and Patty Murray (D.,
Wash.) released their bipartisan
bill with the backing of 22 additional senators, evenly split between the two parties. Acknowledging the challenge of
advancing legislation currently
opposed by Mr. Trump, both
senators said they were open to
working with the president to
strengthen it.
But the White House made
clear Thursday that Mr. Trump
was seeking more than minor
tweaks to the legislation, which
would shore up the ACA’s individual insurance markets by extending for two years federal
payments known as cost-sharing reductions that help insurers offset subsidies they provide to some low-income
consumers, while giving states
greater say in how the law is
implemented.
In order for Mr. Trump to
support such legislation, it
must provide relief from the
ACA’s requirement that most
people have health coverage or
pay a penalty, the spokesman
said. It should also roll back or
end the requirement that certain employers provide health
coverage, the White House official said.
Obama Hits Campaign Trail
BY JOSHUA JAMERSON
AND KATE KING
Former President Barack
Obama returned to the political stage Thursday to stump
for Democrats running in the
nation’s two governor’s races
this year, telling voters to renounce “the politics of fear.”
In remarks in support of
Democratic gubernatorial candidates Phil Murphy in New
Jersey and Ralph Northam in
Virginia, Mr. Obama didn’t
name or directly criticize President Donald Trump, who has
worked to dismantle major
parts of Mr. Obama’s legacy.
Mr. Obama urged voters to
elect “people who make you
proud” at a time when the nation’s political environment is
“so nasty.”
“Folks don’t feel good right
now about what they see,” Mr.
Obama said, speaking in Rich-
mond, Va. “Instead of our politics reflecting our values,
we’ve got politics infecting our
communities.”
Public polls show Mr. Murphy, a former executive, with a
double-digit lead over Republican Lt. Gov. Kim Guadagno.
Ms. Guadagno’s spokesman,
Ricky Diaz, painted the Obama
visit as a sign of weakness.
“It’s a bad sign for Phil
Murphy that he has to bring in
President Obama to campaign
for him because it shows he’s
having a problem energizing
his supporters,” said Mr. Diaz.
In Virginia, Mr. Northam,
the lieutenant governor, faces
Republican Ed Gillespie.
Dave Abrams, campaign
spokesman for Mr. Gillespie,
said: “It’s no surprise President Obama would level Lt.
Gov. Northam’s attacks against
Ed at a Northam campaign
event.”
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THE WALL STREET JOURNAL.
Friday, October 20, 2017 | A5
* * * *
U.S. NEWS
BY BRENT KENDALL
AND LAURA MECKLER
WASHINGTON—A lawsuit at
the intersection of two emotional issues—illegal immigration and abortion—is speeding
through the courts, as judges
consider whether an undocumented teen in U.S. custody
may terminate her pregnancy
over the wishes of the Trump
administration.
The 17-year-old girl has
been held by immigration authorities in a governmentfunded detention shelter in
Texas since September, when
she crossed the southern border illegally. She is now about
15 weeks pregnant and seeks
an abortion, and the Department of Health and Human
Services is preventing her
from leaving the facility to obtain the procedure, according
to court documents.
In a rare move Thursday, a
federal appeals court in Washington, D.C., hastily scheduled
an oral argument for Friday
morning after U.S. District
Judge Tanya Chutkan sharply
criticized the administration’s
position and ordered it to release the teen to travel to the
nearest abortion clinic this
week. The government appealed
the decision immediately.
The appeals court put Judge
Chutkan’s order on hold temporarily so it could consider the
case, which raises questions
about whether undocumented
immigrants in custody have the
same constitutional right to an
abortion that is accorded to
U.S. citizens.
The GOP administration of
President Donald Trump has
filed court papers arguing the
government has an interest in
promoting childbirth and protecting fetal life. It says it
shouldn’t have to facilitate the
abortion, particularly for
someone who has no right to
be in the U.S.
The American Civil Liberties
Union, representing the teen,
alleges the administration is
holding the girl “hostage” to
prevent her from obtaining the
procedure.
Under the Democratic administration of Mr. Trump’s
predecessor, pregnant girls in
these detention shelters who
sought abortions were routinely allowed to obtain them,
though
taxpayer
dollars
weren’t used unless the pregnancy was the result of rape or
incest, or unless the life of the
mother was in danger.
That policy has changed under Mr. Trump’s administration. In March, the acting director of the refugee agency
emailed staff to direct federally
funded shelters to refrain from
“any action that facilitates”
abortion access without the
“direction and approval” of the
agency’s director. That included
appointments with medical
providers, counseling and abortion appointments themselves.
In addition, the director of
the Office of Refugee Resettlement, Scott Lloyd, has repeatedly phoned undocumented
girls who seek abortions to try
to talk them out of it, a department spokesman said.
The teen has authorization
from a Texas judge to obtain
the abortion without parental
approval. Her lawyers said the
government wouldn’t have to
pay for the procedure or to
transport her to the clinic.
Justice Department lawyers
said the administration is placing no undue burden on the 17year-old because she has no
right to be in the U.S. and the
government isn’t holding her in
the country against her will.
They said the teen could end
her custody by voluntarily leaving the U.S. or finding a suitable guardian who could care
for her temporarily.
LOREN ELLIOTT/REUTERS
Teen Immigrant
Seeking Abortion
Faces Legal Limbo
A search-and-rescue crew on Tuesday inspected the heavy damage from a wildfire in the Coffey Park neighborhood of Santa Rosa, Calif.
California Debates Fire-Risk Maps
BY CHRIS KIRKHAM
AND JIM CARLTON
SANTA ROSA, Calif.—Coffey
Park, a neighborhood that is
now an ashen expanse of
melted
automobiles
and
charred foundations, has come
to symbolize the destructive
power of the fires ravaging
Northern California.
And yet the neighborhood
wasn’t designated at the highest risk for wildfires, pointing
to the challenges in predicting
fire behavior and the limitations of California’s system for
pinpointing wildfire danger in
dense, urbanized areas.
“We just learned a wildfire
can plow through a city,” said
Lynda Hopkins, a supervisor
for Sonoma County, which includes Santa Rosa, a city of
175,000 about 60 miles north
of San Francisco.
Crews continued to battle
13 large wildfires Thursday
that have charred more than
200,000 acres, state officials
said, and the death toll
climbed to 43. Cooler temperatures and more humidity this
week were helping those on
the fire line.
California has the most extensive statewide system in
the U.S. for mapping wildfire
risk. The program looks at
past wildfires, weather patterns, terrain and the presence
of fire-prone vegetation. In the
highest-risk areas, the state
lays out requirements for any
new construction: fire-resistant building codes, wider
roads for emergency access,
and mandatory disclosures of
fire risk in real-estate deals.
Researchers who have studied the state’s system, administered by the California Department of Forestry and Fire
Protection, known as Cal Fire,
say the maps don’t reflect the
risks posed by specific types
of development in the path of
wildfires, such as older homes
with flammable shingles.
Dave Sapsis, a research scientist with Cal Fire’s mapping
program, acknowledged the
maps have some limitations.
He said it is difficult to collect
extremely localized data on a
statewide scale for risk models
often used for years. Neighborhoods constantly grow and
change, he said, and it is challenging to collect exact data
on the quality of construction
for every home.
Mr. Sapsis said the state is
updating its maps to include
much more localized data on
wind patterns, and he said information from the most recent fires will help the state
improve its modeling of how
wildfires affect urban areas.
“This is a bit of a wake-up
call,” said Max Moritz, a wildfire researcher with the University of California Cooperative Extension. “What we had
here is something that very
rarely happens, but it’s hap-
pening more often.”
A 2012 study by researchers
from the University of Wisconsin and elsewhere found that
many structures burned in
California wildfires since 2001
weren’t in areas determined to
be most susceptible, based on
the state’s wildfire-risk maps.
California’s wildfire-mapping systems require new construction, including rebuilding,
at a higher standard for the
highest-risk wildfire zones.
But there is uncertainty on
what the requirements will be
for Coffey Park because it isn’t
designated as one of the riskiest areas by either the state or
local government.
Many homes in the subdivision were built in the 1980s,
before tougher building codes,
and experts said the outdated
construction standards likely
meant the neighborhood was
more prone to ignite.
—Alejandro Lazo
contributed to this article.
Bush Slams Policies Trump
Backs on Immigration, Trade
BY ELI STOKOLS
Former President George W.
Bush rejected the trade and
immigration stances that President Donald Trump has made a
centerpiece of his administration, and said the U.S. should
continue defending free markets and democracy globally.
In a speech Thursday in
New York, the 43rd president,
who has largely avoided the
political fray since leaving office, also denounced bigotry
and bullying, saying civil discourse was needed. Mr. Bush
didn’t mention his fellow Republican by name.
“We see a fading confidence
in the value of free markets
and international trade, forgetting that conflict, instability and poverty follow in the
wake of protectionism,” Mr.
Bush said. “We’ve seen the return of isolationist sentiments,
forgetting that American security is directly threatened by
the chaos and despair of distant places.”
On immigration policy, he
said: “We’ve seen nationalism
distorted into nativism, forgotten the dynamism that immigration has always brought
to America.”
Mr. Bush’s rejection of bigotry came after Mr. Trump
blamed “both sides” for violence in Charlottesville, Va.,
involving white supremacists
and counterprotesters. Mr.
Trump also regularly uses
name-calling to belittle rivals
or cajole lawmakers.
“Bullying and prejudice in
our public life sets a national
tone, provides permission for
Traditionally,
ex-presidents haven’t
criticized their
successors or policies.
cruelty and bigotry, and compromises the moral education
of children,” he said.
The White House didn’t immediately respond to a request to comment.
Mr. Trump has criticized
trade deals as bad for U.S.
workers, breaking with the
traditional Republican stance
on the issue.
He pulled the U.S. out of
the Trans-Pacific Partnership
with Asian countries and is
pushing Canada and Mexico to
renegotiate the North American Free Trade Agreement on
better terms for the U.S. The
Trump administration has
stepped up enforcement of illegal immigration, increasing
deportations and pushing for
funding for an expanded border wall.
On U.S. involvement overseas, Mr. Trump has questioned the scope of America’s
commitments, most notably
pressing European allies to
contribute more to the North
Atlantic Treaty Organization.
Mr. Trump has also repeatedly
criticized Mr. Bush for the
U.S.-led invasion of Iraq in
2003, a decision Mr. Trump
came to oppose.
Traditionally, ex-presidents
haven’t criticized their successors or their policies, making
Mr. Bush’s critique of a fellow
Republican president unusual.
Mr. Bush stayed quiet
throughout the eight years of
the Obama presidency. Barack
Obama, since leaving office,
has occasionally addressed
Trump policy decisions, including criticizing his move to
end protections for immigrants brought to the U.S. illegally as children.
Colossal Constantine
An Artistic Triumph
Monumental size. Legendary subject. Artistic tour de force.
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19th century. Composed by Josef Bühlmann and Alexander von
Wagner, it represents a stunning reduction of the duo’s famed
work commissioned by the Munich Panorama Company in 1885.
Canvas: 57”h x 103”w; Frame: 65”h x 111”w. #30-5528
Former President Bush appeared at George W. Bush Institute event in New York on Thursday.
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A6 | Friday, October 20, 2017
THE WALL STREET JOURNAL.
WORLD NEWS
Spain Poised to Rein In Catalonia Germany
Warns of
Unprecedented
measures are weighed
as Madrid prepares to
strip region of powers
Reach of Law on
Regions Is Unclear
BARCELONA—Article 155,
a constitutional provision that
allows the Spanish government to suspend some of a
region’s powers under specific
conditions, has never been
used, leaving experts uncertain about its scope.
“Nobody knows what the
real reach of this law is,”
said José Manuel Vera, a professor of constitutional law at
Madrid’s King Juan Carlos
University. “The suspension of
powers can mean many things.”
Experts say the article’s
authors purposely left it open
to interpretation and conceived it for exceptional situations. Most countries with a
system of federal states or
that grant ample autonomy to
regions have similar provisions.
Catalonia could challenge
the government’s decision before Spain’s constitutional
court, which is responsible for
settling disputes between
Madrid and the regions.
—Giovanni Legorano
BARCELONA—Prime Minister Mariano Rajoy is poised to
exercise constitutional powers
to impose tighter control on
Catalonia, plunging Spain into
uncharted waters as Madrid
seeks to quell the region’s bid
for independence.
After separatist leaders
flouted a Thursday morning
deadline set by the central
government to abandon their
secessionist push, the Rajoy
government called an emergency cabinet meeting for Saturday to agree on measures to
rein in Catalonia, deepening
one of the country’s worst political crises in decades.
Carles Puigdemont, president of the region and leader
of the separatist movement,
warned in a letter to Mr. Rajoy
that Catalonia’s regional assembly may formalize a unilateral declaration of independence if the prime minister
refuses to negotiate Catalonia’s future outside Spain.
In televised remarks, Íñigo
Méndez de Vigo, a spokesman
for the Spanish government,
denounced Catalan leaders’ efforts to “deliberately and systematically seek an institutional
confrontation despite the serious damage this is inflicting on
the peaceful coexistence and
economy in Catalonia.”
Moving to strip Catalonia of
some powers is intended to
“protect the general interest of
Spaniards, including the citizens
of Catalonia,” he added. Recent
polls show a majority of Catalans don’t support secession.
Under pressure to bring the
Catalan separatists to heel,
Mr. Rajoy is expected to have
broad political support to im-
DARIO PIGNATELLI/REUTERS
By Jeannette Neumann
and Giovanni
Legorano
The cabinet of Prime Minister Mariano Rajoy is set to hold an emergency meeting Saturday.
plement Article 155, a provision in Spain’s 1978 Constitution that grants Madrid the
power to “take all measures
necessary to compel [a selfgoverning] community to
meet” legal obligations it is
refusing to fulfill. That potential has triggered a frenzy of
debates among constitutional
lawyers throughout Spain during the past month and a variety of interpretations.
The article sets one clear requirement: The prime minister
and his cabinet must ask
Spain’s upper house of parliament to approve any next
steps. In addition to Mr. Rajoy’s
own center-right Popular Party,
which has a majority in the
Senate, two main opposition
parties have said they would
support stripping Catalonia of
some of its autonomy if separatists insist on secession.
The constitutional provision
has never been exercised, leaving Mr. Rajoy without precedents as he decides how to proceed. Constitutional scholars
say the central government can
strip Mr. Puigdemont and other
Catalan authorities of their
functions and potentially remove them from their posts.
Prosecutors and courts could
intervene in the meantime. Mr.
Puigdemont has acknowledged
he could go to jail.
Analysts expect Madrid to
prioritize taking control of Catalonia’s police forces. The 17,000strong regional police force, the
Mossos D’Esquadra, has already
shown signs of resisting orders
from Spanish authorities. Earlier this month, Spanish na-
tional police and central government officials said Mossos
officers disobeyed court orders
to close polling stations during
the Oct. 1 referendum on secession held by the Catalan government, which was unauthorized.
A top Spanish court is also investigating the Mossos chief
and has seized his passport for
allegedly hindering the work of
Spanish national police during a
court-ordered probe last month.
The Mossos have said they follow court orders and the investigation of their chief is based
on false accusations.
Madrid has already seized
most of the regional government’s spending power in the
run-up to the referendum.
Mr. Rajoy will have to walk
a line between keeping his
promise to restore legal order
in Catalonia without further
hardening separatist sentiment
by moving too aggressively. Independence supporters prize
the significant autonomy in
Catalonia, which has its own
police force and oversees
health and education systems.
Last week, Mr. Puigdemont
proclaimed Catalonia an independent republic but suspended
that declaration moments later
to provide time to negotiate
with Madrid. He didn’t put the
declaration to a vote in the regional parliament, where separatist lawmakers hold a majority. On Thursday, he threatened
to do so if Mr. Rajoy continued
to refuse negotiations.
Catalonia tensions give
Treasurys a boost.................. B11
A weight on Spain’s debt. B12
ISIS Youth
Threat
BY WILLIAM WILKES
BERLIN—Children radicalized by Islamic State could carry
out terrorist attacks in Germany, its domestic intelligence
agency said, posing a challenge
to security services because of
the legal protection afforded to
young people in the country.
The German BfV on Thursday said Islamic State had indoctrinated very young German
children living in the extremist
group’s territory in Iraq and
Syria, for instance, by forcing
them to execute prisoners for
internet propaganda videos.
Of the more than 950 German nationals who have traveled to Islamic State territory,
around 200 were women and
around 50 were children, the
BfV said. Some of the women
may have given birth to children fathered by Islamic State
fighters.
As the militant group loses
further territory, European antiterror agencies expect more
families with minors to make
their way to Europe, either as
refugees or, for those originally
from Europe, as returnees.
“We have to keep an eye on
this risk and find a fitting concept to combat it,” BfV chief
Hans-Georg Maassen said on
Thursday.
Surveillance of potential
child terrorists under 14 years
of age by intelligence agencies
is illegal in Germany, however.
There are also restrictions on
surveillance of youths aged
between 14 and 18 years old.
In addition, the minimum age
for criminal responsibility is 14,
meaning children can’t be prosecuted for violent acts committed in Syria or Iraq. Older children, defined under German law
as “adolescent,” face shorter
and milder sentences for crimes
committed before turning 21.
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Andrej Babis met with his supporters during a campaign rally in Prague last month.
Antiestablishment Tycoon
Leads Czech Race for Premier
BY DREW HINSHAW
Czech voters are poised this
week to elect as prime minister a blunt-spoken billionaire
who tells crowds the system is
rotten and rigged by distant
European elites, a situation
only he can fix.
“It’s a catastrophe,” Andrej
Babis, an agricultural tycoon
turned politician, said at a
rally this week in the Czech
countryside. “This is our last
chance to knock down a corrupt establishment.”
Mr. Babis is evidence of an
evolving dynamic playing out
across Europe: As traditional
parties collapse, the vacuum is
being filled by anti-immigration,
nationalistic groups. Polls show
Mr. Babis’s Party of Dissatisfied
Citizens carrying 27% of the
vote ahead of Friday’s election.
None of the half-dozen competing parties are polling above
13%, including the ruling Social
Democrats and rival old-guard
parties whose origins stretch
back to the end of communism.
Other newcomers likely to enter Parliament include the
Czech Pirate Party, a youthdriven democracy movement.
The throngs at Mr. Babis’s
rallies—where he tries to show
a common touch by passing
out doughnuts—attest to the
narrow but steady popularity
of his platform, a populist grab
bag that includes a ban on
Muslim immigrants and friendlier ties with Russia. Mr. Babis
regularly complains about the
European Union, comparing it
to the Soviet Union, and promises to run the Czech Republic,
a country of 10 million people,
“like a family business.”
Months ago, this political
line appeared to be on the back
foot. Candidates promising
tough borders and less over-
Andrej Babis is
evidence of an evolving
dynamic playing out
across Europe.
sight from the EU fell short in
France in May and the Netherlands in March. Those failures
emboldened a class of European
leaders—with French President
Emmanuel Macron at the fore—
to pursue a contrasting vision
of a more united, integrated EU.
But Mr. Babis’s momentum
points to where populism still
rides high, in Europe’s poorer,
post-Communist half.
Mr. Babis’s expected victory
would make this country one
more thorn in the side of the
EU. Czech President Milos Zeman largely agrees with the billionaire candidate’s program.
Polls suggest that Mr. Babis has
tapped into a reliable reserve
of voters who resent the EU
dictating, for instance, that the
country take in refugees.
Mr. Babis could face some
pitfalls if elected. Police have
charged him with fraud for allegedly misdirecting €2 million ($2.4 million) in EU subsidies to a company owned by
his children. Mr. Babis denies
those charges, which he says
are part of a government effort to bring him down.
Some voters have expressed
concern about the unprecedented level of power Mr. Babis would wield in office.
Those controversies haven’t
helped his rivals gain ground. A
larger-than-normal number of
undecided voters are heading to
the polls this year, said Otto
Eibl, a professor of political
communications at Masaryk
University in the Czech city of
Brno. The victor will almost certainly have to form a coalition
government, a process likely to
be fraught with conflict.
“The main idea of Mr. Babis
is that the political parties
have lost their importance,”
Mr. Eibl said. “There’s cynicism and disappointment with
the whole system.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Friday, October 20, 2017 | A7
* * * *
WORLD NEWS
BY ANATOLY KURMANAEV
AND MARÍA RAMÍREZ
CARACAS—Venezuela’s government on Thursday banned
opposition governors from
taking office in five states, replacing them with ruling-party
substitutes, after the opposition released evidence it said
proves electoral fraud in a crucial industrial state.
The government’s move effectively deprives the opposition of most of its remaining
elected offices in the country.
Copies of 11 voting-machine
receipts from Bolívar state uploaded to the opposition alliance’s website don’t match the
results released by Venezuela’s
pro-government National Electoral Council following Sunday’s gubernatorial vote, according to calculations by
Eugenio Martínez, an election
analyst at Catholic University
in Caracas. The contrasting
data, provided by opposition
poll observers and undisputed
by the government, were also
reviewed by The Wall Street
Journal.
The official results gave the
ruling-party candidate Justo
Noguera, an active major general, 2,000 more votes than
shown in the receipts, the data
show. The tally showed Gen.
Noguera with 1,500 votes more
than prominent opposition
candidate Andrés Velásquez, a
former union leader and twotime presidential candidate.
The slim victory clinched
the government’s hold of Venezuela’s industrial hub and extended the opposition rout.
“We caught them with their
hands in the cookie jar,” Mr.
Velásquez said in a message on
his Twitter account Wednesday.
The head of the National
Electoral Council, Tibisay Lucena, called Sunday’s elections
“impeccable” on Wednesday.
Venezuelan President Nicolás
Maduro said Thursday that Venezuela “has the most perfect
electoral system in the world.”
WILLIAM URDANETA/REUTERS
Government Foes
Kept From Office
In Venezuela
A woman held a banner on Wednesday in support of an opposition candidate who officials say lost his re-election bid in Bolívar state.
The electoral council and
the Information Ministry
didn’t respond to requests for
comment Thursday.
The electoral council determined the ruling party won 18
of the 23 states. Most polls
predicted an opposition landslide, in some places by a 2to-1 margin, which government foes hoped would pave
their path to the presidential
palace next year.
The opposition alliance has
Until now, however, the opposition has stopped short of
accusing the government of
tampering with the ballot
boxes, saying it lacked proof.
The Bolívar poll receipts provide the opposition with the
first evidence of what appears
to be results manipulation, said
Félix Seijas Jr., director at Caracas-based pollster Delphos.
The opposition’s fraud
claims are unlikely to lead to a
serious official investigation,
called the vote a fraud and refused to accept the results or
swear in its few winning candidates in front of a pro-government assembly. The government responded Thursday by
replacing the opposition governors-elect with ruling-party
members.
The opposition alliance accuses the government of hundreds of irregularities, ranging
from last-minute poll changes
to voter harassment.
Mr. Seijas said. But they could
lead to further sanctions
against Mr. Maduro’s embattled government, he said.
“If the evidence is well documented and presented, it could
become a major force in raising
international pressure against
the government,” he said.
The U.S. said Sunday’s vote
was “neither free nor fair” and
pledged further economic and
diplomatic actions against the
government.
BY RAJA ABDULRAHIM
Two days after leading the
battle to oust Islamic State
from Raqqa, U.S.-backed Kurdish fighters on Thursday made
clear they have replaced the
extremist group as the Syrian
city’s new authority.
Members of the Kurdish-led
Syrian Democratic Forces held
a news conference in a symbolic public square, where
they raised a giant banner of
Abdullah Ocalan—the Kurdish
nationalist leader jailed as a
terrorist in Turkey. The divisive photo of the Turkish
Marxist leader stood out amid
a sea of mostly yellow and
green flags representing the
various Kurdish militias that
make up the bulk of the fighters in the SDF.
There were no flags in sight
representing the Arab groups
that are part of the SDF and
also took part in capturing the
city.
The four-month campaign
to reclaim what was once Islamic State’s de facto capital,
backed by U.S. airstrikes and
American special forces on the
ground, was hailed as a victory
in driving the extremists from
a city that became synonymous with their reign of terror.
But for residents of the predominantly Arab city, this display of Kurdish nationalism
has subdued their celebra-
BULENT KILIC/AGENCE FRANCE-PRESSE/GETTY IMAGES
A Symbol of Kurdish Nationalism Rises in Raqqa
Female fighters of the SDF assemble near a flag of Abdullah Ocalan.
tions.
“The photo clearly represents who controls Raqqa
now,” said Mohamad al-
Mosari, an activist and one of
the founding members of
Raqqa is Being Slaughtered Silently, the first anti-Islamic
State group that formed in the
city.
The banner reignited concerns among some residents
and activists over the ground
force chosen by the U.S. to lead
the battle for Raqqa. The campaign was delayed for many
months as the U.S. and its
North Atlantic Treaty Organization ally Turkey debated what
groups should steer the fight.
Turkey considers the YPG,
the main Syrian Kurdish militia in the SDF, a terrorist
group and one and the same
with the Kurdistan Workers’
Party, or PKK, the separatist
group headed by Mr. Ocalan
that Ankara has been battling
for years. Both the U.S. and
Turkey have designated the
PKK as a terrorist organization.
Kurdish commanders defended the move and said it
wasn’t meant to be divisive.
“Ocalan represents an idea.
We look at him as a philosopher who spreads democracy,”
Mirvan Rojava, a military commander of the YPG, said of the
Marxist leader. “The issue is
not connected with his political party or his military followers.”
—Nour Alakraa
and Nazih Osseiran
contributed to this article.
Chevron suspends operations
in Iraqi Kurdistan..................... B6
Quebec Ban on Full-Face Veils
Spurs Muslim Furor in Canada
BY PAUL VIEIRA
OTTAWA—Quebec’s passage
of a law banning the wearing
of full-face veils is sparking
anger among Muslims in Canada, who claim the measure
represents “ugly identity politics” from a government seeking re-election in a year.
The government of the
French-speaking province of
Quebec on Wednesday used its
majority in the legislature to
pass a bill that prohibits public-sector employees and recipients of public services
from wearing face coverings.
The ban, which the provincial
government has called a first
in North America, in theory
prohibits
niqab-wearing
women from taking public
transit, or from signing out
books from a library.
Legal experts said on
Thursday that they expect the
Quebec law to be challenged.
“It’s just a question of
when, to be honest,” said Dia
Dabby, a Quebec lawyer with
expertise in religious freedom.
Quebec’s move follows measures implemented in France,
Belgium, and several African
countries. France, for instance,
argued full-face veils pose a
security risk as they conceal a
person’s identity. Further, it
argued successfully before the
European Court of Human
Rights that showing one’s face
in public was one of the minimum requirements of participating in society.
Quebec Premier Philippe
Couillard played on this theme
when defending the legislation
to reporters in Quebec City on
Wednesday.
“We are just saying that for
reasons linked to communication, identification and safety,
public services should be
The province’s move
follows similar
measures in France,
Belgium and Africa.
given and received with an
open face,” Mr. Couillard said.
“We are in a free and democratic society. You speak to
me, I should see your face, and
you should see mine. It’s as
simple as that.”
The bill does offer the possibility of religious accommodation, but details as to how that
will work remain unclear. The
government wants the law fully
implemented by next summer.
Benjamin Berger, a constitutional law professor at To-
ronto’s York University, said the
law as written is “extremely vulnerable” because, in his opinion,
it likely violates freedom-of-religion provisions in Canada’s constitution, as well as humanrights legislation in Quebec.
The National Council of Canadian Muslims said the new
law “boils down to ugly identity politics.”
The council’s executive director, Ihsaan Gardee, said
Quebec’s Liberal government—
which faces re-election next
year—“is advancing a dangerous political agenda on the
backs of minorities, while pandering to bigoted populism instead of practicing principled
governance.”
Opposition parties in Quebec voted against the bill because they believed the legislation didn’t go far enough in
ensuring so-called religious
neutrality, a stance that means
the state shouldn’t promote religion of any kind. Polling organization Angus Reid Institute
said this month its research indicates more than 60% of Quebec residents “strongly support” the proposed law.
Quebec has been a draw for
immigrants from Frenchspeaking countries in North
Africa where Islam is practiced. Overall, 3.2% of Quebec’s
population is Muslim.
Jacob Sanchez
Diagnosed with autism
Australia Immigration Bill Expires
BY ROB TAYLOR
CANBERRA, Australia—Australia will keep trying to raise
hurdles for immigrants after
proposed changes, including a
more difficult English test and
acceptance of “Australian values,” were blocked.
Prime Minister Malcolm
Turnbull proposed a new citizenship bill in April, declaring
would-be immigrants would
have to prove their commitment to the nation with a new
citizenship test and a more
stringent English language assessment.
The bill wasn’t passed after a
deadline for a Senate vote on
the legislation expired. “We believe very strongly that the proposals we’ve put forward is
sensible,” said Immigration
Minister Peter Dutton on Thursday. He vowed to try again to
garner support for the bills.
Mr. Dutton’s changes had
been criticized by the main
Labor opposition bloc, as well
as the influential Greens party
and centrist NXT bloc. Their
combined numbers were
enough to block the bill in the
upper house, where Mr. Turnbull’s government can’t pass
legislation without support.
The changes would have increased the waiting period for
permanent residents wanting to
become Australian citizens to
four years from one. The bill
also would have imposed a test
of “Australian values,” including
questions on whether it was acceptable to strike one’s spouse.
Muslim community leaders
said the questions were clearly
aimed at them.
Australia’s postwar immigration is generally seen as a
success, with surveys showing
broad acceptance of policies
that have created a country in
which a quarter of the population was born overseas.
But anti-Muslim sentiment
has grown as the economy
slowed and global worries
about terrorism increased.
Lack of speech is a sign of autism.
Learn the others at autismspeaks.org/signs.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Friday, October 20, 2017
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
Turns
China Economy Backs Into Future FBI
Attention
Data show state
sector leads expansion,
even as president lauds
higher-quality growth
BEIJING—President Xi Jinping lauded China’s transition
to high-quality growth as he
opened a major leadership
meeting this week. For now,
though, smokestack industries
are carrying the economy.
It grew at a 6.8% pace in
the third quarter, much above
forecasts at the beginning of
the year that warned of a
slowdown.
Nothing less than a stellar
report would be expected
when Communist Party leaders are gathered in Beijing to
anoint Mr. Xi for a second
term. But the disconnect between the president’s words
and Thursday’s data from the
QILAI SHEN/BLOOMBERG NEWS
BY LINGLING WEI
Smoke billows from the chimneys of a factory in Dalian.
National Bureau of Statistics
was striking, illustrating that
for all the talk of a bigger role
for markets, the state sector’s
role has grown under Mr. Xi.
While recovering global demand has lifted China’s exports, a main reason for the
strong numbers was that coal
miners and metal makers
cranked up production as
prices rose—driven higher by
government-mandated capacity cuts that had forced out
many private companies.
Other old-economy players,
such as real-estate developers,
kept appetite for cement, steel
and other construction materials strong, defying government efforts to cool the housing market.
In fact, despite much-touted
efforts to relieve long-term ills
such as high debt, overbuilding and overproduction, many
manufacturers say their overall capacity is rising, not falling, and Chinese banks are
lending more, not less.
That and growing global
demand give Beijing some economic breathing room—in the
short term.
“Financial stresses that continue to build up in the background can be kept at bay for
at least a little longer,” said
Eswar Prasad, a China scholar
at Cornell University and the
International Monetary Fund’s
former top official in China.
In a survey by data provider China Beige Book, hundreds of coal, steel, aluminum
and copper companies reported that the third quarter
was the sixth in a row in
which overall capacity rose.
Sunstone Development Co.,
which makes carbon blocks
used in aluminum production
and employs nearly 2,000
workers across China, has increased its capacity by a third
as prices for its products have
gone up significantly—partly
because tougher environmental rules forced many smelters
to shut down.
“Our products are in short
supply,” said Lang Guanghui,
Sunstone’s chairman.
Because tackling inefficiencies could slow growth in the
short term, it collides with
party pledges to improve life
for ordinary Chinese and turn
China into a rich country. Mr.
Xi’s speech emphasized goals—
such as a “moderately prosperous society” by 2020—that are
likely to limit Beijing’s flexibility in managing the economy.
—Lin Zhu
contributed to this article.
Secretary of State Rex Tillerson answering questions at the Center for Strategic and International Studies on Wednesday in Washington.
same direction with China to
ensure the healthy and sound
development of the China-U.S.
relationship,” it continued.
Mr. Tillerson’s comments follow a rocky summer in his relationship with Mr. Trump. Signs
of tension have continued to
overshadow the insistence from
both men that all is well.
“If I were a world leader—
doesn’t matter who—I wouldn’t
talk to Tillerson,” said Larry
Wilkerson, who was chief of
staff to former Secretary of
State Colin Powell, citing the
public divide between the two
men. “The president must feel
that this person can do the
work for him…this is not the
case here. It’s becoming antagonistic.”
During a meeting at the Pentagon one weekend in July, Mr.
Tillerson rolled his eyes as he
reluctantly acquiesced to the
president’s criticism of the Iran
nuclear pact. “It’s your deal,”
Mr. Tillerson said in his Texas
drawl as he peered in the direction of other cabinet officials,
instead of Mr. Trump.
After that meeting, Mr. Tillerson referred to the president
as a “moron,” according to people familiar with the conversations. Mr. Tillerson’s spokeswoman has denied he made the
remark.
Mr. Trump has also disparaged his top diplomat, complaining that Mr. Tillerson
doesn’t understand his “Make
America Great” philosophy and
has few original thoughts. “Totally establishment in his thinking,” he has told aides.
Asked Thursday if he be-
lieved Mr. Trump should be reelected, Mr. Tillerson paused for
a beat, then said, “Well, of
course.”
“I mean, I don’t think about
it, quite frankly, right now,” he
said. “We’ve got these things
we’re dealing with, but yeah.”
Early on in the administration, Messrs. Trump and Tillerson seemed to have an easy
rapport.
When they first arrived in
their new jobs and their wives
had yet to join them in Washington, they often ate dinner together, joined by a combination
of Defense Secretary Jim Mattis; John Kelly, now the White
House chief of staff; and General Joseph Dunford, the chairman of the Joint Chiefs of Staff.
While those dinners have
largely stopped, Mr. Tillerson
and the president continue to
meet, as they did in the Oval Office on Thursday, in what was at
least their second meeting this
week. In what a State Department spokeswoman described
as a “positive,” they had lunch
earlier this month after reports
of name-calling between them.
Mr. Tillerson’s openness to
speaking to reporters comes after he was prompted to hold a
news conference to address rumors that he was on the verge
of quitting and had made derogatory remarks about the president. On Thursday, Mr. Tillerson
expressed confusion about rumors of his departure. “Who in
the world is telling you that
stuff?” he said.
He said he would remain in
the job “as long as the president
thinks I’m useful.”
WORLD WATCH
RUSSIA
Putin Threatens U.S.
Over Media Scrutiny
President Vladimir Putin
weighed in on the U.S. government’s scrutiny of Russianfunded news outlets RT and
Sputnik, promising a “mirrored
response” against U.S. media if
those agencies are sanctioned.
“As soon as we see concrete
steps restricting the activities of
our media, a mirrored response
will immediately follow,” the Russian president said in Sochi, Russian news agencies reported.
Russian officials in recent
weeks have threatened retaliatory measures against U.S. news
organizations operating in Russia, after the Russian government-funded channel RT said it
had been asked by the Justice
Department to register under
the Foreign Agents Registration
Act, a tool used to regulate foreign-government lobbying and
advocacy in the U.S.
Mr. Putin said Russian media
have “much less power” than their
U.S. and British counterparts, Interfax reported.
—Nathan Hodge
THE PHILIPPINES
Military Likely Killed
Senior ISIS Leader
A senior Islamic State lieutenant who helped finance its
operations in Southeast Asia
was likely killed by Philippine
forces, the military said, days af-
GEERT VANDEN WIJNGAERT/ASSOCIATED PRESS
Continued from Page One
with China, even as he adopted
Mr. Trump’s stern tone on
Asia’s economic power.
On Thursday, Mr. Tillerson
warned China that the U.S. has
an arsenal of economic weapons
to force Beijing to address trade
imbalances and a continuing
territorial dispute in the South
China Sea.
“We can do this one of two
ways,” Mr. Tillerson said during
the interview, seeming at times
to speak directly to his Chinese
counterparts. “We can do it cooperatively and collaboratively,
or we can do it by taking actions and letting you react to
that.”
Tools he might apply include
tariffs, World Trade Organization actions, quotas and other
mechanisms, he said.
The president and Mr. Tillerson are scheduled in November
to visit Asia for a 10-day trip
through five countries, including China, where the two former businessmen—both firsttime public office holders—will
push these issues.
Mr. Tillerson said the race to
stem North Korea’s nuclear program, as well as trade issues
with Japan and South Korea,
will also dominate the trip.
In a response to Mr. Tillerson’s recent tough talk, the Chinese Embassy in Washington on
Wednesday released a statement. “Through dialogue and
cooperation with the countries
in the region, the situation in
the South China Sea is generally
stable. Countries outside the region should fully respect these
efforts to safeguard regional
peace and stability,” it said.
“The track record demonstrates that China and the U.S.
are better together. We hope
the U.S. side can work in the
WIN MCNAMEE/GETTY IMAGES
TRADE
ALL SMILES: U.K. Prime Minister Theresa May, center, with
French President Emmanuel Macron and German Chancellor
Angela Merkel in Brussels on Thursday, pledged to treat
European Union residents well once Britain leaves the bloc.
ter the deaths of two others
who led the bloody occupation
of a Philippine city.
Forces in Marawi killed 20
militants in recent days, the military said, including Mahmud Ahmad, a Malaysian who recruited
foreign fighters and channeled
hundreds of thousands of dollars
into the monthslong battle. The
death, if confirmed, would follow
the killing of Isnilon Hapilon, Islamic State’s appointed emir in
Southeast Asia.
—Ben Otto
AFGHANISTAN
Taliban Attack Kills
Dozens at Army Base
At least 43 Afghan soldiers
were killed in a Taliban attack on
an army base in southern Afghanistan, officials said, as the
resurgent militant group stepped
up its assaults on the country’s
beleaguered security forces.
Taliban fighters drove their
explosives-packed Humvees to
the entrance of the base and
triggered their cargo before
gunmen overran the installation,
said Dawlat Waziri, a spokesman for the Afghan Defense
Ministry.
A Taliban spokesman, Qari
Yousaf Ahmadi, said the base,
and the weapons and equipment
housed there, were under Taliban control.
Mr. Waziri denied the claim,
saying government officials were
at the base assessing the damage.
—Habib Khan Totakhil
To Chinese
Business
Owner
The Federal Bureau of Investigation is looking into a Chinese business owner who was
linked to a ship found smuggling North Korean rocket-propelled grenades last year, and
who has ties to a North Korean
trade and financing network,
according to people familiar
with the matter.
By Ian Talley
in Washington,
Jeremy Page in Beijing
and Nicole Hong
in New York
The FBI probe of the man,
named Sun Sidong, is a window
into wide-ranging U.S. efforts
to trace and cut off business
networks that direct goods and
currency toward the regime of
Kim Jong Un, which faces escalating international sanctions.
The Trump administration
has launched a broader campaign to crack down on North
Korea’s financial networks,
though it isn’t clear whether
this investigation is directly
associated with that effort.
The FBI operates independently from the White House.
The FBI has been looking
into Mr. Sun’s U.S. connections
to potentially illegal transactions with North Korea, according to one person familiar with
the investigation. Another person said the FBI has inquired
about a personal U.S. real-estate
deal involving Mr. Sun, and a
third person said Mr. Sun was
on the FBI’s radar.
Neither Mr. Sun nor his
businesses have been sanctioned by the U.S.
One of Mr. Sun’s companies
and a company owned by his
sister, Sun Sihong, have each
been listed as owners of a
cargo ship, the Jie Shun, that
The man’s ties to a
North Korean trade
network are under
investigation.
the United Nations said was
seized by Egypt off its coast
last year and found to be hiding
30,000 rocket-propelled grenades under piles of iron ore.
At the time of the seizure,
the ship was owned by Ms.
Sun’s Hong Kong-based company, Vast Win Shipping, and
it had been previously owned
by Mr. Sun’s Hong Kong-based
company, Jie Shun Shipping
Co., according to the Equasis
shipping database and Hong
Kong corporate records.
Mr. Sun last week declined
to comment. In an interview
with The Wall Street Journal in
June, he denied doing any trade
with North Korea or having any
knowledge of the Jie Shun. Ms.
Sun declined to comment.
The U.N. this month banned
the Jie Shun and three other
ships from entering membercountry ports for what it said
were illegal North Korean
shipments.
A spokeswoman for the
FBI’s field office in New York
declined to comment. The U.S.
Treasury, which is responsible
for sanctioning illicit networks,
also declined to comment.
Mr. Sun is also the owner of
Dandong Dongyuan Industrial
Co., according to Chinese corporate records. That company
has been one of the largest exporters of so-called dual-use
equipment from China to
North Korea, according to
Washington-based nonpartisan
research group C4ADS, which
analyzes global conflict and
security issues. Dual-use items
are normally used for civilian
purposes but can also have potential military applications.
Dandong Dongyuan Industrial reported in Chinese corporate filings from 2010 on
that it was exporting to North
Korea, but it removed the reference in November 2016.
The Commerce Ministry in
Beijing and the local government in Dandong didn’t respond to requests to comment
on whether they had taken action against Mr. Sun or any of
his companies.
—Xiao Xiao and Kersten
Zhang in Beijing
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | A9
* * * *
IN DEPTH
OFFICE
‘Dressed It Up’
WeWork’s strategy carries
the costs and risks associated
with traditional real estate.
Its client list is heavily
weighted toward startups
that may or may not be
around for long. WeWork is
on the hook for long-term
leases, and it doesn’t own its
own buildings. Vacancy rates
have risen recently, and the
company is increasing incentives to draw tenants.
“If you had positioned this as
a real-estate company, it
wouldn’t be worth this,” said
Barry Sternlicht, who runs Starwood Capital Group LLC, with
more than $50 billion of realestate assets under management. Mr. Neumann “dressed it
up and made it into a community, and that turned it into a
tech play.”
Venture capitalists and mutual funds have poured billions into companies claiming
they can upend traditional industries whether through the
use of technology or their
unique appeal to millennials.
Startups in the business of
selling meal kits, mattresses
and razors have received techlike valuations based on the
idea their rapid growth can
continue for years.
Mr. Neumann in public remarks often compares WeWork
to ride-hailing company Uber
and home-rental service Airbnb,
whose valuations soared on the
premise they were technology
platforms, not taxi or hotel
companies.
Some of the air is now coming out of that balloon. Shares
in Blue Apron Holdings Inc., the
meal-kit maker, are now trading
at half the price of its IPO. Juicero Inc., the seller of a coldpress juicing system, announced
in September it was halting operations after having raised
$100 million in venture capital.
At WeWork offices, options
include a single desk in an open
space, dedicated offices with
doors, and full floors for more
established companies, including Amazon.com Inc. and International Business Machines
Corp. Common spaces have
couches, foosball tables and
beer kegs for meetings and socializing, and events take place
frequently.
The model has proved popular, with 150,000 individuals
renting space in more than 170
locations globally.
Mr. Neumann, who declined
to comment for this article, has
said WeWork is neither a realestate company nor a tech company. The “We Generation,” as
WeWork's model is similar
to office-leasing company IWG,
which manages five times the
square footage but has a much
lower valuation.
WeWork*
IWG**
Square footage
10M
49.8M
Workstations
150,000
463,477
Annualized revenue
SCOTT LEGATO/GETTY IMAGES
Continued from Page One
lion in August.
Others in the real-estate industry and some Silicon Valley
investors say the company’s
well-crafted image belies the
mundane nature of its business.
WeWork takes on long-term
leases for raw office space and
builds out the interior with flexible spaces and modern design
that it then subleases for terms
as short as a month.
IWG PLC, an office-leasing
company with a business model
similar to WeWork’s, manages
five times the square footage
and has about one-eighth the
market value.
Boston Properties Inc., the
country’s largest publicly traded
office landlord, owns five times
the square footage that WeWork manages and has a market capitalization of $19 billion.
Office Space
$1B††
$3B
Valuation
WeWork’s founders, Miguel McKelvey, left, and Adam Neumann, spoke at an event in Detroit in May. The company rents shared workspace.
he calls it, craves sharing and
collaboration rather than isolated offices. “They’re coming
to us for energy, for culture,” he
said at an event this summer.
He talks of “space as a service,” a play on the concept of
software as a service, in which
a provider makes software
available to users as they need
it over the internet. He calls the
company a “platform”—like a
computer operating system—
from which it can sell other services such as insurance or software.
Mr. Neumann told WeWork’s
PR representatives to push back
against characterizations in the
media of WeWork as a real-estate company and instead describe WeWork as a lifestyle or
community-focused company,
according to people familiar
with the instructions.
“We frankly are our own category,” said Artie Minson, WeWork’s president and chief financial officer in an interview.
“We use real estate and services
The CEO calls the
concept a ‘physical
social network’ for
millennials.
to empower our community.”
He said the company’s valuation made sense because investors are looking to WeWork’s
plans for growth and millions of
members in the future.
At 6 feet 5 inches with a mop
of dark hair, Mr. Neumann
stands out in a crowd of suitclad commercial landlords in
New York. He carries himself
like a tech founder, sporting
fashionable sneakers, T-shirts
and multiple days of stubble. He
tells his young workforce they
are making the world a better
place by creating more communal workplaces.
Colleagues say he holds latenight meetings that can start at
11 p.m. and run for hours. Multiple people who traveled overseas with him say he insisted
they stay up the whole night
working. “I don’t think he ever
sleeps,” said Michael Eisenberg,
an early WeWork investor and
an adviser to Mr. Neumann who
currently is a partner at venture-capital fund Aleph.
Bruce Dunlevie, a partner at
Benchmark Capital Partners
who sits on WeWork’s board,
said charismatic, creative and
motivated entrepreneurs are
valued differently by investors
“based on their ability to figure
out how to skate to where the
puck is going to be,” he said.
“Adam has many of those qualities—he’s just a very charismatic, compelling person.”
From WeWork’s tiny early
days, Mr. Neumann talked about
how he was building a $100 billion business, two friends said.
He has said the company will
have one million individual tenants—which he calls members—
in the near-term, and has signaled the company will
eventually list shares, without
specifying a timeline.
WeWork’s investors said the
company’s nearly $1 billion in
annualized revenue, based on
October’s projected revenue,
shows how both startups and
established companies are embracing co-working.
Similar investor hopes surrounded IWG, the flexible workspace provider, which was
called Regus when it went public in 2000. Demand plummeted
in the dot-com bust, leaving it
with high fixed lease costs and
sinking rents from subtenants.
Its U.S. business sought bankruptcy protection. IWG is valued at around $5,600 for each
desk, compared with WeWork’s
$135,000 per desk.
“WeWork is nothing but Regus with a paint job—it’s newer,
cooler,” said Frank Cottle, chairman of Alliance Business Centers, a large network of serviced
offices. WeWork’s valuation, he
said, “makes no sense.”
Mr. Minson said WeWork’s
valuation is based on its growth
potential, unlike IWG’s.
Mark Dixon, IWG’s chief executive, said he learned a tough
lesson about doubling in size
every year. “If you expand too
rapidly at any one point in the
market, that can catch you,” he
said.
SoftBank, the Japanese tech
company led by billionaire
Masayoshi Son, invested more
money than any other into WeWork with its August infusion.
Some executives at its $93 billion Vision Fund argued against
the deal, saying the price was
already too high for what they
viewed as a real-estate company, according to people fa-
CHANDAN KHANNA/AGENCE FRANCE-PRESSE/GETTY IMAGES
CLAP
The game ‘Clap for Xi Jinping: An Awesome Speech’ has
generated more than a billion ‘claps’—taps on smartphone screens.
Continued from Page One
Thursday afternoon, the game,
“Clap for Xi Jinping: An Awesome Speech,” had generated
more than 1 billion claps, according to the game site’s running tally. All week, people
were discussing the game on
social media and bragging
about their scores.
“Most Chinese are playing it
in a jovial way to show their
support,” said Shaun Rein,
managing director of CMR
China, a market-research firm.
The clap game is the latest
way Chinese are applauding Mr.
Xi, who has endeared himself to
many at home by cultivating a
common touch despite political
crackdowns and economic troubles under his watch. His star
power has inspired Chinese
tourists to retrace his steps to
places he has been overseas, including a British pub and an
Iowa farm. His visit to a Beijing
steamed-bun shop inspired a
music video titled “Steamed
Bun Shop.”
miliar with the matter.
Mr. Son said he would urge
his friends’ companies and
those backed by SoftBank to
lease space with WeWork to
help with its rapid expansion,
according to the people. SoftBank declined to comment.
A decade ago, Mr. Neumann
was a small-time entrepreneur
in his 20s living with his sister,
a model, in her Tribeca apartment. Mr. Neumann, who was
raised on a kibbutz in Israel,
was struggling with his first
startup idea—women’s shoes
with collapsible heels—which
failed to take off. His next venture was baby clothes with knee
pads called Krawlers.
Ranee Kamens, Krawlers’s
initial designer, said he was
“very, very, very focused” on
making money and seemed to
relish the social whirl. “It was
always a party in his house, a
lot of good-looking people” she
said. “He enjoyed being part of
that scene.”
Krawlers struggled, and Mr.
Neumann merged his company
with high-end baby clothes
company Egg by Susan Lazar.
In 2008, he and two friends
persuaded a landlord to start a
shared office space in Brooklyn
as a side project, thinking they
could sublease it for a profit.
Demand proved surprisingly
strong.
$20.2B
$2.6B†
Mr. Neumann and Miguel
McKelvey—an architect raised
on a commune in Oregon—
struck out on their own and
formed WeWork in 2010. They
started pitching Manhattan
landlords on shared office and
residential space. Mr. McKelvey
is now WeWork’s chief culture
officer.
Joel Schreiber, a Manhattanbased real-estate investor, said
he was captivated by Mr. Neumann and his vision early on.
After a three-hour conversation
in 2010, the entrepreneurs offered him a 33% stake in WeWork for $15 million. “I didn’t
negotiate—I said yes,” Mr.
Schreiber said. “I loved Adam’s
energy.”
Valuation per square foot
Tequila shots
* As of Oct. 13.
** As of June 30. † As of Oct. 18
†† Company estimate based on Oct. revenue
Sources: the companies
20.2 times
0.9 times
Valuation as multiple
of annualized revenue
$2,020
$52
Valuation per workstation
$134,667
$5,603
THE WALL STREET JOURNAL.
Mr. Eisenberg, a partner at
venture firm Benchmark Capital
at the time, said he pitched the
company to his partners. They
saw WeWork as a way to tap
into the trend of college-educated millennials moving to major urban centers. They were
wary of real estate, but the
partners decided, “Let’s give
him some money and he’ll figure it out,” said Mr. Dunlevie,
the Benchmark partner in
charge of the deal. Benchmark
led a $17 million funding round
in 2012.
Bigger investors began piling
in, including Goldman Sachs
Group Inc., J.P. Morgan Chase &
Co.’s asset management arm, investment bank Jefferies and
mutual funds T. Rowe Price
Group and Fidelity Investments.
Mr. Neumann has told
friends and associates he sold
more than $100 million of WeWork’s shares, said four people
who spoke with him about it, an
unusually large amount to sell
before an IPO, according to
transactions made public in
other startups’ listings.
A WeWork spokeswoman declined to confirm or deny the
share sales but said Mr. Neumann is still the company’s
largest shareholder.
The CEO makes his penchant
for tequila well-known, and
landlords and others who have
visited the office say they have
been treated to healthy pours,
often the pricey Don Julio 1942.
On a Monday morning in
Philadelphia a few years ago, he
coaxed Jared Kushner, the realestate developer who is now se-
nior adviser to President Donald Trump, into a bar where he
insisted they do shots of tequila, according to multiple
people familiar with the exchange. The two had been looking at a Kushner-owned property that WeWork ended up
leasing.
Last year, WeWork posted
revenue of $436 million, missing a target set in 2014 of over
$700 million, according to the
company and projections provided to investors.
Mr. Minson, the finance
chief, said WeWork doesn’t expect profitability this year. In
2014 it had projected it would
have income of $500 million by
now. Mr. Minson said WeWork
could be profitable tomorrow if
it weren’t investing so much in
growth.
Occupancy of offices open a
year have fallen to 90% from
97% last year, according to the
company. WeWork this year
doubled commissions for brokers that bring new tenants to
20% of a year’s rent—at least
twice the rate of most competitors—and it has recently passed
out fliers with offers of free
rent outside a London subway
station.
WeWork said its marketing
costs per tenant have stayed
flat in the past year and that
brokerage commissions are a
small cost.
—Liz Hoffman contributed
to this article.
In the game, users watch
snippets of Mr. Xi’s three-andhalf hour speech, delivered at
the opening of China’s 19th
Party Congress. “It is a solemn
promise,” Mr. Xi intones in one
clip, “that the poor people and
poor areas will be part of the
moderately prosperous society
together with the rest of the
country.” When the snippets
end, players have 19 seconds to
clap as often as possible by rapidly tapping their smartphone
screens. Players earn scores
based on how many times they
clapped.
Tapping with only one finger
won’t rack up much appreciation for Mr. Xi, discovered Eric
Yu, a 25-year-old Ph.D. student
at Northwestern University
from Hubei, China. “Then I figured out more fingers may
help,” he said. On his third try,
he used all five fingers on one
hand, as someone might play
successive keys in a piano arpeggio.
Mr. Yu’s result: 1,489 claps in
19 seconds, putting him in the
99th percentile among the
game’s players. “The game itself,” he said, “is quite silly.”
Others found the game inspiring. One devoted fan waxed
philosophical online, saying
that “the clapping game reminds me of the idiom,” then
citing a Chinese saying that
translates thusly: “If the upper
ranks have a hobby or trait, the
lower ranking followers will
display a more extreme version
of that trait.”
Offering virtual applause for
the party boss is a Communist
China variation of the socialmedia habit of “liking” people’s
statements. The game is not the
first instance where clapping is
the preferred form of praise. In
August, Medium, a publishing
site for writers, announced a
“Claps” system that lets readers
give variable levels of applause
to articles.
Other Chinese companies
looking to show enthusiasm for
the 19th Party Congress include
Didi Chuxing, whose ride-sharing app shows nearby cars with
miniature Chinese flags. A Beijing Foreign Studies University
coffee shop offers latte art of
the Chinese hammer and sickle.
The clapping game is the latest patriotic move by Tencent.
A day before the congress began, Tencent issued a notice
that users of its WeChat and
QQ social messaging apps
wouldn’t be able to update their
profile pictures or information
until the end of the month.
While Tencent cited “system
maintenance” as the reason, users of the services noted the
timing coincided with the opening of the 19th Party Congress,
which wraps up Oct. 24.
The company, which didn’t
return calls seeking comment,
has recently come under fire
from the government for hosting fake news, pornography and
other banned content.
Using Mr. Xi in a game has
potential risks. After memes
comparing Mr. Xi to Winnie the
Pooh spread online earlier this
year, censors banned the bear
from China’s internet.
So far, the incessant clapping
doesn’t appear to have raised
any hackles. “If anything,” said
Mr. Rein, the research-firm director, “it’s a good way to
soften up Xi’s image.”
—Kersten Zhang, Esther Fung
and Xiao Xiao contributed to
this article.
Big Leagues
WeWork ranks among the most
highly valued U.S. startups.
$68B
Uber
$31B
Airbnb
SpaceX
$21B
WeWork
$20B
Palantir
$20B
Pinterest
$12.3B
Lyft
$11B
Dropbox
$10B
Stripe
$9.2B
Outcome
Health
$5.5B
Sources: Companies; Dow Jones
VentureSource
THE WALL STREET JOURNAL.
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A9A | Friday, October 20, 2017
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GREATER NEW YORK
Officials Crack Down on Use of E-Bikes for Deliveries
KHOLOOD EID FOR THE WALL STREET JOURNAL
Mayor says motorized
bicycles are dangerous;
restaurants say people
want their orders fast
BY ZOLAN KANNO-YOUNGS
New York City business
owners permitting employees
to ride electric-motorized bicycles will be hit with fines
starting next year in what
Mayor Bill de Blasio said is an
effort to reduce a public safety
hazard.
Riding the “e-bikes,” which
are powered by an electric motor and don’t require pedaling,
already is illegal under city
law. Currently, riders caught
on the bikes are issued a civil
summons, have their bikes
A cyclist rides an e-bike on Bedford Avenue in Brooklyn.
confiscated and must pay a
$500 fine to get them back.
Starting in 2018, the New
York Police Department will
additionally seek out the em-
ployers of riders using the ebikes for commercial purposes
and issue a $100 fine for a
first offense and a $200 fine
for each subsequent offense.
The mayor said the new
policies won’t apply to the independent contractors riding
the bikes but riders will still
face the $500 direct fine.
Stores that sell the e-bikes
and people who keep them on
private property will still be
permitted to do so.
Mr. de Blasio said the new
policy would hold the owners
accountable instead of just
disciplining the bike riders,
who are often delivering for
restaurants. But the new policies worry some business
owners who say e-bikes are
needed to survive in a city
with as much congestion as
New York and customers who
expect quick deliveries.
“A business buys one and
hires someone to drive it and
gives them a delivery to make,
right there it’s an obvious violation of the law,” Mr. de Blasio said during a press briefing on Thursday. “They are
profiting by violating the law.”
Police have heightened their
focus on e-bike riders as the
vehicles have gained popularity. So far in 2017, the NYPD
has confiscated 923 of the bicycles, compared with 341
seized during the same period
last year, officials said. Nearly
1,800 summonses have been issued to e-bike riders this year.
Jay Cai, the owner of Banhmigos restaurant in Brooklyn,
has his deliveryman ride an ebike and said the new policies
are “crazy.” He said e-bikes
are valuable because of the
heavy traffic in New York and
lack of parking spots. He said
on average he gets 25 delivery
orders an hour for a profit of
$30,000 a month. Without an
e-bike, he said that would
drop by 50%.
Customers would be upset if
they had to wait longer for deliveries, and “they’re not going
to order again,” Mr. Cai said.
“We’re not going to survive.”
Mr. de Blasio said the
crackdown was inspired by
residents who complained that
the bikes were a hazard.
“I’ve seen these bikes going
the wrong way, I’ve seen how
fast they can go, I’ve seen how
reckless they can be,” he said.
The mayor said consumers
will learn to be patient.
“If it takes a couple more
minutes for your delivery to
get there, you’re going to live,”
Mr. de Blasio said. “You want
people to be safe.”
Cape May Offers Model for Flood Protection
Mixed
News Seen
In City’s
Job Data
BY MELANIE GRAYCE WEST
New York City’s private-sector employment is up over the
past year, despite a recent
slump in the growth rate.
The city’s private-sector
employment is up 1.3% from
September of last year, with
48,100 jobs added, according
to figures released Thursday
by the New York State Department of Labor. Statewide,
more than 84,000 jobs have
been added over the last year,
labor analysts said.
The leisure and hospitality
sector as well as education and
health services both grew by
at least 4% over the year.
The overall growth during
the past year comes despite
the slight, steady losses in the
city’s month-to-month private
sector jobs since the beginning
of the summer. In June, there
were 3,894,700 jobs, compared
with 3,844,200 in September.
Figures aren’t seasonally adjusted.
Overall, data from the state
show the biggest drops in the
past year were in trade, transportation and utilities, and
wholesale trade.
There was also a slight drop
in the number of manufacturing jobs in the past year. To
stem steady losses in that sector, the city is investing hundreds of millions with hopes to
create some 20,000 industrial
and manufacturing jobs.
Statewide, the unemployment rate increased from 4.8%
in August to 4.9% in September. In New York City, the unemployment rate rose from
4.9% to 5.1%.
CAPE MAY, N.J.—Decades
before superstorm Sandy
wrought destruction along
New Jersey’s 127-mile coastline, residents of the stormbattered South Cape May
abandoned their oceanfront
homes to the tides.
South Cape May, a beach
village on New Jersey’s southern tip that at one point had a
trolley, four-story building
shaped like an elephant and
Victorian homes, no longer exists. In its place is a 456-acre
nature preserve and state park.
Known as Lower Cape May
Meadows, the area serves as a
crucial stopover for migrating
birds and helps protect inland
neighborhoods from dangerous
storm surges.
Since the nature preserve
was completed in 2007, homeowners in nearby Cape May
Point have submitted fewer
flood insurance claims, according to a 2014 study by the Nature Conservancy, which owns
the preserve. Cape May Point
is a small residential community located just west of the
popular seaside resort of Cape
May.
“The roads don’t flood at all
now,” said Nancy Kirtland, 71,
who has lived in the borough
for 22 years. “Even superstorm
Sandy resulted in very little
damage.”
Environmental experts say
the project offers a model for
how communities can retreat
from vulnerable oceanfront
while helping protect inland
areas from the effects of expected rising sea levels. The
state has earmarked $375 million in mostly federal funds to
buy out and demolish homes in
flood-prone areas, but so far
has focused these efforts on
tidal communities rather than
coastal towns.
Bob Martin, commissioner
of the New Jersey Department
of Environmental Protection,
said Lower Cape May Meadows showed state officials that
wetlands provide “significant
protections” to coastal communities by absorbing floodwater. Still, the state doesn’t
plan on abandoning popular
tourist shore towns that are
susceptible to storm damage,
he said.
“I see no retreat at all,” Mr.
Martin said. “We are protecting the coastline and we continue to build there. I think
what we’re looking to do is,
how do we adapt better for the
storms.”
This year’s unusually active
hurricane system has caused
extensive flooding damage
across the southern U.S. and
Caribbean on a scale reminis-
MICHELLE GUSTAFSON FOR THE WALL STREET JOURNAL (2)
BY KATE KING
The nature preserve has helped protect Cape May Point from flooding and provided a vantage point for bird watchers, below.
Project Provided
Relief From Storm
cent of Sandy, which killed
more than 100 people and
caused an estimated $71 billion
in damage in 2012.
As storms increase in frequency and severity, officials
across the country are looking
$375M
Money earmarked to buy and
raze homes in flood-prone areas
to boost buyouts in areas that
suffer repeated flood damage.
Properties that suffer repetitive flood losses account for
fewer than 2% of properties
with flood insurance. But those
policyholders have amounted
to 30% of all claims paid out in
the federal flood insurance
program’s history, according to
government estimates.
Buyout programs can be a
tough sell. Some local leaders
in New Jersey have resisted,
fearing that the demolitions
will erode the local tax base.
Just north of Cape May in the
barrier island city of Wildwood, Mayor Ernie Troiano Jr.
said people who live on the
water know that flooding is a
risk and pay flood insurance
premiums accordingly.
“I don’t need my town
turned into empty lots,” Mr.
Troiano said. “I’m personally
not a fan of buyouts.”
Since 2013, New Jersey has
purchased about 600 homes
for $126 million. After buyouts,
Beginning in 2004, the Army
Corps and the Nature Conservancy designed and built 2 miles
of dunes, replenished the beach
in front of Lower Cape May
Meadows with more than 1 million cubic yards of sand and restored freshwater wetlands.
Since the $15 million project
was completed a decade ago,
the Army Corps and New Jersey
have spent about $30 million
fortifying the dunes and beach.
Today, levees within the preserve allow officials to drain the
wetlands ahead of storms or
heavy rain. They help prevent
flooding to nearby homes and
businesses, according to Adrianna Zito-Livingston, Cape May
Preserves coordinator for the
Nature Conservancy.
Cape May Point was spared
the worst of superstorm
Sandy’s impact in 2012, but the
borough did experience a more
than 3-foot-high storm surge
similar to that seen during a
1992 winter storm. The National
Flood Insurance Program received 46 claims from Cape May
Point homeowners in 1992. In
2012, by contrast, homeowners
submitted 13 claims.
—Kate King
the properties are demolished
and the land is turned over to
municipalities for use as open
space.
Patricia Doerr, director of
the Nature Conservancy’s
coastal and marine programs
in New Jersey, said local economies can benefit by restoring
coastlines to their natural habitats, as evidenced by Lower
Cape May Meadows.
“It doesn’t have to be the
economic hardship that communities fear when it comes to
buyouts and retreat,” Ms.
Doerr said.
Founded in the late 1800s,
South Cape May was a beach
village on the Atlantic Ocean.
Joseph Burcher, whose family
owned several summer houses
there, said it was an idyllic
spot dotted with blackberry
and huckleberry bushes, but
that residents would fear for
their lives during storms.
“The water would come
down the streets,” said Mr.
Burcher, now 93 years old, who
remembered paddling around
the flooded town in a canoe
with his brothers as a young
teenager.
The town, battered by
nor’easters and the Great Atlantic Hurricane of 1944, was
completely abandoned by the
1950s, according to Mr.
Burcher, who wrote a book
about South Cape May with his
son-in-law, Robert Kenselaar.
Mr. Burcher said he was
glad the place where he spent
his childhood summers is now
a nature preserve. “I love it because you know no one will
build on it now,” he said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Friday, October 20, 2017 | A9B
NY
* *
GREATER NEW YORK
BY THOMAS MACMILLAN
Three Long Island men
were arrested and charged
with running an operation
that bred and trained pit bulls
for illegal dog fighting, New
York Attorney General Eric
Schneiderman said Thursday.
Authorities recovered 36
American pit bull terriers
from three dog kennels in
Wyandanch, more than half of
them puppies and many
showing signs of injury after
being forced to fight, Mr.
Schneiderman said.
“This was truly a chamber
of horrors for these dogs,”
Mr. Schneiderman said at a
news conference outside an
animal shelter in West Babylon. “We have seldom seen
conduct this barbaric, this despicable.”
Richard Davis, 34 years
old, Martin Newkirk, 49, and
Taikeem Wheeler, 26, all of
Wyandanch, face dozens of
charges including animal
fighting, conspiracy and animal cruelty.
Messrs.
Wheeler
and
Newkirk
pleaded
not
guilty Thursday. Mr. Davis
was awaiting arraignment.
The men and their lawyers
couldn’t be reached for comment.
The arrests were the result
of an effort dubbed “Operation Bloodline” by the Suffolk
County police and the attorney general’s office, which in
March began investigating reports of dogfighting on Long
Island.
Authorities
executed
search warrants last month at
the three kennels and found
dogs kept in filthy conditions,
without food and water, attached to heavy chains, and
having received no veterinary
care, Mr. Schneiderman said.
“These dogs were treated
in a manner that was designed to make them angry,
designed to make them fighters, to make them antisocial,
and to make money off of
their suffering,” he said.
Also in the kennels, investigators found treadmills and
weighted vests that had been
used for training the dogs, as
well as performance-enhancing dietary supplements and
blood-spattered
“breaking
sticks,” used to pry open the
dogs’ jaws during training
fights, Mr. Schneiderman said.
One dog had an untreated
broken leg and many were infected with parasites, he said.
Three of the dogs were euthanized. Mr. Schneiderman said
authorities are hoping to rehabilitate and find homes for
some of the remaining dogs.
A ‘Ferguson’ Twist Comes to New York
Director and cast push back on playwright’s view of grand jury investigation into fatal police shooting
BY CHARLES PASSY
W
hen author and
filmmaker Phelim
McAleer unveiled
his play “Ferguson” in Los
Angeles two years ago, he
hit a roadblock. The majority of the cast members left
the production, saying it
was a one-sided take on the
shooting in the St. Louis
suburb.
Mr. McAleer has been
quick to counter the criticism, faulting the actors for
not allowing themselves to
take a closer
FOOD &
look at what he
CULTURE
says is the irrefutable truth.
“They were
cowards,” he said.
Now, Mr. McAleer is
about to try his luck in New
York, with a production of
“Ferguson” that
opens Monday night at Manhattan’s 30th Street Theatre,
a 69-seat venue. And the
Northern Ireland native is
ready to embrace any more
controversy that comes his
way.
“People have this idea of
what happened [in Ferguson], and if this contradicts
it, I don’t give a sh—,” he
said.
Mr. McAleer’s play is
drawn entirely from transcripts of the grand jury
proceedings that resulted in
Darren Wilson, a white police officer in Ferguson, Mo.,
not being indicted following
the shooting death of Michael Brown, an unarmed 18year-old African-American
man, in August 2014.
The grand jury’s decision
led to nationwide protests
and became a key moment
in the Black Lives Matter
movement.
At issue with “Ferguson,”
however, is how Mr. McAleer
has gone about reconstructing the case. Actors who
walked out of the Los Angeles production, done as a
staged reading, said Mr.
McAleer cherry-picked testimony that was sympathetic
to the argument that Mr.
Wilson acted in self-defense
against a belligerent Mr.
Brown. They also said the
playwright played down
claims by witnesses that
presented a different side of
the story.
Philip Casnoff, one of the
actors who quit, said Mr.
McAleer had a clear agenda
and, as a result, “it felt
wrong to be associated
with” the production.
Mr. McAleer asserts he
hasn’t left out any significant testimony in his play,
which he said fits squarely
into the tradition of “verbatim theater.”
Mr. McAleer adds that he
HOLLY PICKETT FOR THE WALL STREET JOURNAL (2)
Men Bred
Dogs for
Fighting,
Says A.G.
Cast members of ‘Ferguson,’ being staged at 30th Street Theatre, say they took a different approach to the play. ‘That’s an
occupational hazard of working in New York,’ said author Phelim McAleer, below. He hopes to bring his work to the rest of the country.
was inspired to bring “Ferguson” to New York when
Mike Pence, then the vice
president-elect, was booed
by fellow audience members
while attending a performance last November of the
Broadway musical “Hamilton.”
To Mr. McAleer, it sent
the message that conservatives aren’t welcome in the
theater community—and it
was a message he says was
ready to challenge.
“I thought, ‘No one tells
me what to do,’ ” said Mr.
McAleer, whose previous
work has especially focused
on film. His 2009 picture,
“Not Evil Just Wrong,” rebuked Al Gore’s “An Inconvenient Truth” by taking a
contrarian view on global
warming.
S
taging “Ferguson,”
with its cast of 13, isn’t
a cheap affair, even by
small-theater standards. The
New York production, which
is in previews this weekend,
has a budget of $97,000.
While Mr. McAleer is hoping
for strong ticket sales, he
also has launched a fundraising campaign via the
Indiegogo website and has
taken in slightly more than
$25,000 to date.
For all the controversy
that “Ferguson” generated
in Los Angeles, the New
York staging has gone relatively smoothly so far—despite the fact that some
members of the cast, which
includes a number of Afri-
GREATER NEW YORK WATCH
City Is Tapping Artists for Creative Help
The City of New York is
looking for a few good artists.
The city’s Department of
Cultural Affairs, in collaboration with Mayor Bill de Blasio,
is launching artist-in-residency
programs at three city agencies: the Department of Correction, the Department of Probation and the Mayor’s Office
to Combat Domestic Violence.
In each case, an artist will
be based with the agency for a
minimum of one year. The cost
for every residency is
$40,000—or $120,000 in total.
The city is kicking in
$100,000 for the initiative,
with the rest coming from a
private source. Artists will
need to apply by Nov. 12 for
consideration; the residencies
will begin in January 2018.
Department of Cultural Affairs Commissioner Tom Finkelpearl said the effort ties in
with goals outlined in the
city’s recently unveiled cultural plan, dubbed CreateNYC.
Specifically, it addresses the
desire for the arts to be more
fully integrated into the public
sector, he says.
“We believe culture is good
for the city, and it’s good in
lots of different ways,” he
said.
The residencies aren’t necessarily about artists creating
work—at least in the traditional sense. In some cases,
the artists might partner with
agency staff on problem solving. In others, they might con-
DAVID ANDRAKO
BY CHARLES PASSY
ANIMAL WELFARE
POLITICS
New Law Bans
Elephant Acts
Mayor Won’t Run
For U.S. House Seat
Elephant performances at circuses, parades and carnivals will
soon be illegal in New York state
after Gov. Andrew Cuomo signed
legislation Thursday intended to
protect the animals from abuse
and mistreatment.
The new law, which fully
takes effect in two years, bans
the use of elephants as entertainment. Violators will be subject to a $1,000 fine per incident. Zoos won’t be impacted by
the new rules.
New York City has already
banned the use of elephants as
entertainment and the number
of such performances is down
nationally amid concerns about
animal welfare.
—Associated Press
Syracuse Mayor Stephanie
Miner says she won’t run for
Congress next year.
The Democrat had been mentioned as a potential challenger to
Republican Rep. John Katko, who
represents the Syracuse area.
In a statement released
Thursday, Ms. Miner said she
decided not to run “after much
thoughtful consideration and
conversations with my family.”
Ms. Miner also has been
mentioned as a potential primary challenger to Gov. Andrew
Cuomo in 2018.
Ms. Miner is term-limited out
of office at the end of this year.
—Associated Press
New York City is hoping artists can help young people, including convicts, express their creative side.
CRIME
nect with individuals that the
agency serves.
For example, Department of
Probation Commissioner Ana
‘We believe culture is
good for the city and
it’s good in lots of
different ways.’
Bermúdez said she sees potential for a resident artist to
help those on probation, especially younger people, express
themselves through creative
means. In turn, that might
help them realize their potential and ultimately reduce
their chance of being incarcerated, she said.
Ultimately, a governmentfunded artist residency is “a
great use of taxpayer dollars.
It’s being smart on crime in a
very effective way,” Ms. Bermúdez said.
Such residencies aren’t new
to New York—or to other cities, for that matter. In New
York, artists have partnered
with such agencies as the
Mayor’s Office of Immigrant
Affairs, the Administration for
Children’s Services and the
Department of Veterans’ Services.
Still, not everyone is enthusiastic about the residencies.
Seth Barron, a project director
with the Manhattan Institute,
a New York-based free-market
think tank, notes that the city
already supports culture
through grant programs and
public-art projects.
He said he doesn’t necessarily see a need to add the
latest initiative to the mix,
given the city’s other fiscal
priorities.
“It sounds frivolous,” Mr.
Barron said.
can-Americans, similarly object to Mr. McAleer’s approach.
But the difference, say
cast members and director
Jerry Dixon, who is AfricanAmerican, may be in how
they are tackling the work.
While the testimony in support of the police officer is a
big part of the play, they believe the staging also shows
how the grand jury procedure was inherently flawed,
particularly in terms of what
they consider the confrontational or leading ways some
witnesses were interrogated
by the prosecution.
In effect, the acting and
direction undercut some of
Mr. McAleer’s message and
show what really happened,
they say.
“This was not your typical grand jury experience,”
said Mr. Dixon. As the director also explained: “I’m adding my truth to [Mr. McAleer’s] truth.”
Mr. McAleer accepts, albeit somewhat grudgingly,
the approach the director
and cast have taken. “That’s
an occupational hazard of
working in New York,” he
said.
Either way, he hopes the
current production, which
runs through Nov. 5, won’t
be the last of “Ferguson.” He
says would like to take the
play to the rest of the country.
“I want to bring it to Ferguson itself,” he added.
Police Seek Driver
In Fatal Dragging
Police are looking for an SUV
driver they say fatally dragged a
Bronx man trying to buy an Armani jacket from him.
The New York Police Department says 49-year-old Dennis
Gandarilla met with the driver
around noon Tuesday in the
Bronx to buy the jacket. The
driver then sped off at some
point during the conversation,
dragging Mr. Gandarilla for about
four blocks before he was
thrown to the ground.
—Associated Press
OPIOID CRISIS
State Weighs Curbs
For Doctor Incentives
New Jersey is considering
proposed regulations aimed at
curbing incentives to doctors as
a way to stem the opioid epidemic. Attorney General Christopher Porrino conducted a public
hearing in Newark Thursday.
The state says New Jersey
doctors collected $69 million
from drug companies and device
manufacturers last year. It is examining whether lavish meals
and uncapped compensation
from pharmaceutical companies
influence physicians to prescribe
highly addictive opioids.
—Associated Press
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Friday, October 20, 2017
THE WALL STREET JOURNAL.
LIFE&ARTS
TELEVISION REVIEW
By Dorothy Rabinowitz
COLUMBIA PICTURES (2)
SERGEI KARPUKHIN/REUTERS
He Wanted To
Make Russia
Great Again
Vladimir Putin in June.
THIS TWO-PART “Frontline” film on
Vladimir Putin’s life and career begins
with a scene at once moving, ominous
and very Russian. Here is President Boris
Yeltsin, who yearned to bring democracy
to Russia, making an announcement that
he’s resigning—and that he asks forgiveness because so many of the dreams of
the Russian people had not come true,
because he had not succeeded, because
he was now tired and had to leave.
People wept. And for his final act as
president, the film reminds us, Yeltsin,
father of Russian democracy, turned the
country over to his little-known prime
minister, Vladimir Putin, former KGB officer. “Take care of Russia,” Yeltsin told
him that night, New Year’s Eve 1999.
Mr. Putin had somehow convinced
Yeltsin that he shared his democratic goals.
One of the film’s commentators, a Russian journalist, offers a clarification.
“He’s a professional liar. To lie is what he
was taught in the intelligence schools.”
What Vladimir Putin was taught, and
how it shaped the man known to the
world today is a crucial part of the story
filmmaker Michael Kirk and company unearth in captivating detail—it’s impossible not to be drawn in by this life’s journey. As a KGB officer, Mr. Putin had been
posted in Dresden, East Germany, in time
to see the fall of the Berlin Wall in 1989,
a terrifying event for this product of the
Soviet system. It was more frightening
when he tried to call Moscow to report
hostile demonstrators marching on the
offices of the Stasi, the secret police,
housed in the KGB building, only to find
Moscow silent.
He would create a new career for himself with Yeltsin, but the end of the Soviet Union would always be, for Mr. Putin, the greatest of historical calamities.
One of the first steps he took after becoming president was to restore the Soviet era’s national anthem.
In addition, that is, to taking control
of television news programming and getting himself an image consultant—he
wanted to project virility and strength.
Mr. Putin, the narrator observes,
wanted to make Russia great again—a
phrase whose delectable echo no one will
fail to notice—but that project would
lead to conflict with the West and interference in an American election.
His KGB training had instilled his unyielding vision of the U.S. as the prime
enemy in the world—a view that deepened, the film argues, the more he came
to see Americans as determined exporters of democracy and thus as the prime
cause of the insurrections that led to rePlease see PUTIN page A11
FILM REVIEW | By Joe Morgenstern
‘Only the Brave’:
Heroism Under Fire
A harrowing dramatization of the story of the Granite Mountain Hotshots and a 2013 blaze
‘ONLY THE BRAVE” could hardly be more
the hell and hazing of basic training. The
fer Connelly, as Amanda Marsh, Eric’s veteritimely, since its larger subject is the wildfires
main rookie, Brendan McDonough, has been
narian wife who must share him with a sucthat have been bringing grief and devastation
doing drugs and is bound for no glory until
cession of fires, sweeps aside the clichés of
to vast areas of the nation with what seems
Marsh takes him in and mentors him. He’s
her role with marvelous ferocity.
to be increasing frequency. To dramatize the
played by Miles Teller, who gives a fine, unYet the screenplay, by Ken Nolan and Eric
courage and dedication of the crews that
derstated performance that’s all the more
Warren Singer, keeps strumming the same
fight these conflagrations, the film celebrates
moving because McDonough, in fact,
chords, as if the studio were afraid the audithe Granite Mountain Hotshots, an
ence wouldn’t understand that
elite group of firefighters that
“Only the Brave” was about the
faced its greatest challenge on a
crew as a surrogate family, and
hill near Yarnell, Ariz., in the sumthe heroism of its members.
mer of 2013. Their homegrown
(“You’re all heroes,” a nurse says
spirit is so appealing, and their
helpfully when McDonough, who’s
history so affecting, that you want
been bitten by a rattlesnake, is
to overlook the shortcomings of a
brought by his buddies to a hospidutiful, derivative script, with its
tal for treatment.)
several inspirational strands and
What’s missing is density of dedearth of essential details.
tail. Early in the film there’s a strikThe story the movie tells, at a
ing shot—the cinematographer was
leisurely pace over the course of
Claudio Miranda—of a huge hose
133 minutes, is one of hardworkdescending from the top of the
ing, hard-partying young men
screen. Soon we see that it’s being
finding a sense of family, discilowered from a helicopter to gulp
pline and purpose in a firefightwater from someone’s swimming
ing crew created by the city of
pool before the chopper flies off to
Prescott, Ariz. The unit is superhelp smother a menacing blaze. I
Miles Teller as Brendan McDonough and Taylor Kitsch as Chris
vised by Eric Marsh, a veteran
kept looking for similar specifics of
MacKenzie, above; Josh Brolin as Eric Marsh, top.
firefighter in his early 40s; he’s a
how hotshot teams operate on the
man with a checkered past,
ground. Some information is displayed with laconic resolve by Josh Brolin.
emerged from Yarnell Hill with a singular
pensed, but it’s rushed, perfunctory and not
Other members of the team are played by
distinction he never sought. (“A skunker
very edifying. During the evolution of the cliJames Badge Dale and Taylor Kitsch.
down in Yarnell” is how someone first demactic fire, we know where the Granite MounAs the narrative begins, Marsh is strugscribes the fire. “It’s no big deal.”)
tain Hotshots are, more or less, but not what’s
gling to upgrade his crew from Type 2 staThe cast as a whole, under the direction of
happening around them in real time.
tus—unsung grunts doing dirty work—to
Joseph Kosinski, brings gleeful energy to a
Little is known, even now, about the esType 1, meaning hotshots in ability as well as
group portrait of good souls in the American
sential mystery of the event—why a wellin name and attitude, who fight wildfires on
heartland, working one fire after another and
trained crew with a deeply experienced
the front lines. (That he succeeded was a sigliving it up in between. Jeff Bridges is Duane
leader made the decisions they did. All the
nal achievement. The Granite Mountain HotSteinbrink, an elder lawman who helps
same, “Only the Brave” might have exshots were the first such group in the nation
Marsh achieve his ambitions for the group,
panded our understanding by framing that
to grow out of a municipal fire department.)
gets to sing and strum a few bars of Johnny
mystery with greater precision, since the
A lot of the early action borrows from films
Cash’s “(Ghost) Riders in the Sky” and has
supposed skunker down in Yarnell proved to
about World War II: rookies going through
one moment of heart-rending anguish. Jennibe the biggest deal of all.
THEATER REVIEW | By Terry Teachout
New York
IN 1982, Harvey Fierstein’s “Torch
Song Trilogy,” a four-hour autobiographical play about a drag queen
who longs for nothing more than to
settle down with a regular guy,
looked very much like an act of cultural revolution. That it won a bestplay Tony, ran for three years on
Broadway and was then turned into
a movie suggests in retrospect,
however, that Mr. Fierstein’s play
might not have been quite so radical as it once seemed. So does the
first New York revival of what is
now called “Torch Song,” from
which he’s cut an hour and a half
(you won’t miss it) and in which
the lead role is being played not by
the author but by Michael Urie, formerly of “Ugly Betty.” More than
two years after same-sex marriage
became the law of the land, “Torch
Song” is looking more like a commercial comedy about a nice Jewish
boy and his impossible mother—
and a pretty good one, too.
The only thing wrong with Second Stage’s off-Broadway revival of
“Torch Song,” which has been very
effectively directed by Moisés
Kaufman, is Mr. Urie, a fine actor
who is miscast as Mr. Fierstein
(yes, he’s called “Arnold Beckoff”
in the play, but we all know who he
really is). Whether on stage or
screen, Mr. Fierstein was unforgettable, and to see Mr. Urie trying to
put his own stamp on the part
merely underlines why his predecessor was so good in it. A stocky,
lipsticked man whose speaking
voice suggests a bass-baritone frog,
Mr. Fierstein played Arnold with a
volatile mixture of explosive outrage and sweet vulnerability. None
of the ill-sorted pieces of his personality fit together comfortably,
which was what made his performance seem so paradoxically realistic. Mr. Urie, by contrast, is a
whiny, slimmed-down one-note
version of Arnold, thus putting him
at a hopeless disadvantage when
he goes up against Mercedes Ruehl,
who plays his mother. Ms. Ruehl is
also playing a cartoon character,
the stock love-you-loathe-you Jewish mother, but her acting is so full
of conviction that she bulldozes
Mr. Urie off the stage.
JOAN MARCUS (2)
PLENTY ENJOYABLE
BUT NOT REVOLUTIONARY
Michael Urie above and left with Michael Rosen.
As for the play itself, it now reminds me of one of the middle-period comedies in which Neil Simon
was trying to break away from the
jokiness of his early work. It’s full
of bright nuggets of truth (“It’s
easier to love someone who’s
dead—they make so few mistakes”) that get lost among the
punch lines. Does it still come off?
Absolutely, and not just as a period piece, either: “Torch Song” is
honest and heartfelt, and some
parts are genuinely touching. Nev-
ertheless, it is what it is, and what
it isn’t—at least not anymore—is
revolutionary.
Torch Song
Second Stage Theater, 305 W. 43rd St.,
New York ($99-$139), 212-246-4422,
extended through Dec. 3
Mr. Teachout is the Journal’s
drama critic. “Billy and Me,” his
new play, opens at Palm Beach
Dramaworks on Dec. 8. Write to
him at tteachout@wsj.com.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | A11
LIFE & ARTS
COHEN MEDIA GROUP (2)
‘Faces Places’:
Enlarging the Everyday
MISMATCHED BUDDIES are a
staple of movie plots. Throw them
together, preferably on the road,
and funny things are liable to happen. The buddies in “Faces Places”
are perfectly matched, notwithstanding an age difference of 55
years, so the things that happen
during their wanderings around
rural France aren’t funny in a conventional sense. They are lovely,
surprising and deeply moving.
There’s never been a film quite
PUTIN
Continued from page A10
gime change, to the fate of deposed leaders like Hosni Mubarak.
To say nothing of Moammar Gadhafi, whose bloody end at the
hands of his people haunted the
Russian leader.
None of this prevented his official
meetings with American presidents,
described here in entertaining detail—they didn’t go well, for the
most part. Bill Clinton, who found
the experience chilling, would afterward inform Yeltsin, “He doesn’t
have democracy in his heart.”
But the Clinton who would end
up topping the Putin list of mosthated Americans was Hillary, not
the president—Hillary Clinton,
secretary of state in the Obama
administration, a militant pro-democracy advocate who relished
Gadhafi’s downfall. And who had,
worst of all, denounced the government crackdown on Russian
like this one. It’s a loose-limbed,
French-language documentary in
which a couple of kindred spirits—
the photographer and muralist JR,
age 33, and the legendary filmmaker Agnès Varda, age 88—delight in one another and provide
pleasure to those they meet along
the way. They do so partly by listening to people’s stories and savoring the details; that’s a gift that
never stops giving. What they also
do, as co-directors, is photograph
people inside JR’s truck, which is
like a photo booth on wheels, and
enlarge the photos into black-andwhite murals that unfurl from a
slot in the side of the truck. Then
they paste the giant images—usually individual portraits but also
group shots or copies of old snapshots—on structures and objects
ranging from walls and barns to
houses, storefronts, shipping containers, trucks and trains. Instead
of defacement, it’s a process of
citizens marching in the streets
in protest of an election they
knew to be rigged in favor of Mr.
Putin’s party.
Mr. Kirk and team have produced, in “Putin’s Revenge,” a
work of electric power so steady in
its capacity to fascinate—or enrage—that it tends to leave a
viewer limp. There is in it no whiff
of old news.
Part 2, which airs Nov. 1, focuses on the act cited in the title.
On who became aware, relatively
early, of the vast, Putin-orchestrated effort to manipulate the
American election by waging cyber war that included the spread
of false stories in enormous numbers. Hillary Clinton’s supposed
failing health was a treasured
top-of-the-chart item, instantly
embraced by Trump-friendly media outlets.
Who wanted to take action? And
who refused, out of a delicate
sense of propriety?
President Obama, fearful of
seeming to put his thumb on the
scale for the Democratic candidate,
belongs in the second category; so
did Republican leaders for political
reasons of their own. It’s not a
pretty sight. Not to be missed: the
deliciously mordant description of
the desperate effort—involving
endless vetting and scrutiny—by
leaders of the U.S. intelligence
community to get an official statement out on the effort to hijack
the election. The result of this Herculean effort would be three short
paragraphs, doomed to be buried
under the infamous “Access Hollywood” tape, released the same day.
Part 2, which plunges deep into
all aspects of Mr. Putin’s revenge,
is in no small way abetted by the
film’s sterling cast of commentators—journalists, historians, diplomats, heads of U.S. intelligence
agencies—none of whom, fortunately, make any effort to conceal
the vehemence of their views.
Putin’s Revenge
Part 1 on Oct. 25, Part 2 on Nov. 1,
10 p.m., PBS
Weather
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U.S. Forecasts
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Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
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Edinburgh
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Istanbul
Jakarta
Jerusalem
Johannesburg
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Madrid
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Melbourne
Mexico City
Milan
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Paris
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63 45 sh
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SWIM MEET | By Marie Kelly
The answer to
this week’s contest
crossword is a body
of water.
Across
1 Private sch.
5 Web presences
10 Org. mobilized
after Harvey
and Irma
14 Pair in an
ellipse
15 Wind, in
combinations
16 Penultimate
day before St.
Patrick’s Day
17 Contend
18 Like kilts
20 People people
22 Old weight
allowance for
shipping
23 “Whoopee!”
24 Minimal amount
25 Sandwich on a
three-part bun
27 Top-grossing
horror film of
1976
29 Rockers Hunter
and Anderson
33 Asked earnestly
36 Short-necked
pear
37 Ripa or Seacrest,
e.g.
38 Steep slope
39 Two-way, as
some doors
40 They may come
down hard on
you
43 Toe woe
44 Made an aerial
attack, perhaps
45 What you will
47 Twin killed by
his brother
51 Where many
schools meet
54 Satyric sin
55 Lifestyle
expert with a
Bed Bath &
Beyond line
56 Law student’s
struggle
59 Almost a third
of all land
Email your answer—in the subject line—to crosswordcontest@wsj.com
by 11:59 p.m. Eastern Time Sunday, Oct. 22. A solver selected at random
will win a WSJ mug. Last week’s winner: Mark A. Lembo, Tampa, FL.
Complete contest rules at WSJ.com/Puzzles. (No purchase necessary.
Void where prohibited. U.S. residents 18 and over only.)
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
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Atlanta
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Austin
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89 64 pc
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75 47 s
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54 36 r
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Boston
68 51 s
73 55 s
Burlington
64 45 s
71 52 pc
Charlotte
80 49 s
80 53 pc
Chicago
77 58 s
77 59 pc
Cleveland
74 53 s
77 57 pc
Dallas
82 69 pc 87 58 pc
Denver
79 40 s
58 39 pc
Detroit
73 52 s
74 56 pc
Honolulu
87 74 pc 87 74 pc
Houston
80 71 t
88 71 pc
Indianapolis
76 53 s
75 58 pc
Kansas City
76 63 s
74 50 t
Las Vegas
78 55 c
74 55 s
Little Rock
78 60 pc 80 66 pc
Los Angeles
75 59 pc 81 61 s
Miami
89 79 pc 88 80 t
Milwaukee
74 58 s
72 59 pc
Minneapolis
75 61 s
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Nashville
79 51 s
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83 72 pc 84 72 c
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78 65 s
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San
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Vladimir Putin and Boris Yeltsin outside Moscow in 1999.
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.
40s
their mutual interest in images and,
more concretely, as
a chance to find
new faces and memorialize them.
(For theaters and
show times around
the country, go to
tickets.facesplacesfilm.com.)
The faces are
great, but they’re
only the beginning;
it’s the lives the
subjects live and
the stories they tell
that amaze and enchant. A young bell
ringer—he’s a bell
ringer’s son—
Filmmaker Agnès Varda and photographer and
morphs into a femuralist JR, above; residents of Pirou, France, left.
verish athlete as he
pulls the ropes that swing the
facement that gives people a myssteeple bells that make the music
teriously enhanced sense of themthat fills the village. A farmer with
selves by turning their features—
a fondness for technology farms
and their bodies—into instant
2,000 acres on his own, thanks to
monuments of heroic proportions.
his computerized tractor. A dairy
“What can I say?” gasps a
farmer with principles refuses to
woman named Jeannine when she
burn the horns off her goats, even
sees herself rampant on the front
though her competitors do it to
of a decrepit brick building in the
keep their animals from hurting
north of France. “Nothing!” she fione another when they fight.
nally manages to say, which says
The rallying point for all the
everything. She’s the last holdout,
people JR and Agnès meet is his
or résistante, in a row of miners’
truck, with its spectacular trick of
houses. Everyone else has been
spewing large-format images, but
evicted, so it’s not just pleasing
the precious byproduct of the
but haunting when JR and Agnès—
photographic process is convivialno way to call this blithe pixie Ms.
ity. The group photos create
Varda—accompany Jeannine’s imgroups; everyone has a good time
age with blown-up photos of minhanging out, trading stories, sizers long gone or long dead. If only
ing up their magnified selves.
for a few days or a week, the old
And the most touching part of
houses seem inhabited once again.
the film turns out to be the
Ever since her 1955 debut feafriendship that grows between its
ture, “La Pointe Courte,” Agnès
co-directors. He’s tall, she’s tiny.
Varda has been a writer-director,
She’s old, he isn’t, and they have
documentarian and cinematograa running argument about him
pher of eclectic distinction. (One
hiding behind his shades. Yet
of my favorite Varda films is her
these warm and witty artists get
1962 drama “Cleo From 5 to 7,”
each other, amuse each other,
with Corinne Marchand as a singer
adore each other. Unlikely as it
waiting to learn if she is mortally
may look, they’re the picture of
ill.) She and JR decided to do
happiness.
“Faces Places” as an expression of
STR/AFP/GETTY IMAGES
FILM REVIEW | By Joe Morgenstern
PUZZLE
CONTEST
60 Kids’ guessing
game
61 PetSmart buys
62 Whoop
63 Its home is
11 Wall St.
64 “Clash by Night”
playwright
65 1988 Cy Young
Award winner
Hershiser
Down
1 “Is that ___?”
2 Cabaret charge
3 Boston-toWashington
carrier
4 Beeline
5 Its home is
611 Fifth Avenue
6 Vacationer’s
lodgings
7 Course
requirement,
often
8 Became
apparent
9 Earnest
10 Swimming aid
11 Daringly
original
12 Trendily selfreferential
13 Grayish
19 Hellenic H
21 Command
25 Autonomous
program
26 Commemoration
of the victory at
the Battle of
Puebla
28 “Dig in!”
30 Cracked
31 Convention
32 Dines late
33 Vaping need
34 Social blunder
35 Grand
36 Chrysanthemum
cousins
38 Eerie ability
40 Gull’s cry
41 Vacationer’s
lodgings
42 Job listing abbr.
44 Cinder block
hider
46 High-end camera
type
48 Pocket
protector?
49 Advantageous
50 Intend to
51 Go around
52 Relaxed
53 Coders’ creations
55 Mamie’s
predecessor
57 Socket filler
58 Collecting goal
Previous Puzzle’s Solution
Y
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L
P
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A
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A12 | Friday, October 20, 2017
SPORTS
BASKETBALL
Marc Gasol: The NBA’s Constant Gardener
The Memphis Grizzlies center has changed his game in recent years. How? By growing his own fruits and veggies.
Memphis, Tenn.
The zucchinis were “humongous.” The cucumbers were “amazing.” The apples, pears, melons,
plums, figs, squash, pumpkins,
cherries, peppers and even the watermelons were as fresh as they
could possibly be. But the tomatoes?
“Not so good,” said Memphis
Grizzlies center Marc Gasol. “Because there was a lot of shade. My
trees grew too much.”
This was the busiest off-season
the NBA has ever seen, and it was
especially bonkers for the league’s
best players, who signed contracts
worth billions of dollars and
switched teams like never before.
It was productive for Marc
Gasol, too. He spent the off-season
in a garden outside his summer
home on the cliffs of the Mediterranean Sea growing fruits and vegetables.
“I have really good sun time,”
Gasol said in an interview last
week. “It’s a perfect spot to grow
stuff.”
Gasol is extremely serious about
his gardening. He understands
from experience that onions are
fussier than eggplants. He enjoys a
deep appreciation for composting.
He cooks his own gazpacho and
believes it tastes even better
knowing it went from his farm to
his table.
We’ll get to why this matters
for a professional basketball
player—and it does—but first let
us enjoy more seeds of gardening
wisdom from an NBA All-Star.
Gasol on tomatoes: “When you
grow tomatoes, you’re going to get
a lot of tomatoes. So you want to
learn how to preserve.”
Gasol on carrots: “I was planting them on too hard of a soil, and
they would curl. Now we use a different soil. And we got good carrots.”
Gasol on the importance of
daily upkeep: “If you go for a few
days, things get out of control fast.
Like, out of control.”
This isn’t what Grizzlies coach
David Fizdale was expecting when
he met Gasol. He didn’t know any
NBA players who gardened. But he
didn’t know any NBA coaches who
gardened, either. “Marc and I have
great passion for gardening,” he
said. “Our common ground is in
the dirt.”
When he visited Gasol’s home in
Spain, Fizdale came away with one
lasting impression: admiration for
his garden.
KOFONG HSIA
BY BEN COHEN
“I’m so envious of him,” Fizdale
said. “It’s really a beautiful thing.”
It was four years ago that Gasol
moved to Castelldefels, near his
native city of Barcelona, and noticed an uninhabited space with
ample exposure to the sun. He immediately decided to build a garden and grow his own food.
Despite his family’s long history
of gardening, Gasol didn’t really
know what he was doing. But it
didn’t take him long to find out.
He is obsessive about his interests—they also include sailing and
the ocean—and Gasol made sure to
record his thoughts in a notebook.
That came in useful for this
hobby that requires careful planning all year long. His garden isn’t
something he can ignore during
the NBA season. Gasol starts talking with his caretaker in the dead
of winter to analyze the previous
year’s harvest and plot a strategy
for the next summer.
There was a time when Gasol
wouldn’t have been so excited by
vegetables.
The Marc Gasol who went to
high school in Memphis, where his
brother Pau was an All-Star center,
is unrecognizable from the 32year-old Marc Gasol who has blossomed into the Grizzlies’ latest
All-Star center. He weighed 300
pounds back then. He wore a uniform that would comfortably fit
Marc and Pau Gasol today. He was
so pudgy with baby fat when he
entered the NBA that other teams
privately nicknamed him “Manboobs.”
It was remarkably fortuitous
that Gasol became interested in
healthier eating when he did. At
that exact time the NBA was beginning to evolve into the way it
looks today. And no position would
be forced to adapt as much as
Gasol’s.
The change in his body has followed a broader change across
basketball.
As the style of play has gotten
smaller, so has this 7-foot-1 big
man. Gasol’s longtime teammates
couldn’t believe their eyes when
he came back from Spain three
years ago. He was that skinny.
Gasol now swears by his “flexitarian” diet: 60% greens, 30% protein,
10% carbohydrates.
A look at his shot chart is all it
takes to see a similar makeover on
the court. Gasol had taken 66
threes in his entire career before
last season. He had never taken
more than 17 threes in any season.
And then he took 268 last year
alone. The wildest part about
Gasol’s sudden transformation is
that he wasn’t simply a 3-point
shooter. He was a good 3-point
shooter. This player who basically
refused to shoot threes shot a
higher percentage than Russell
Westbrook, James Harden, Kawhi
Leonard, Kevin Durant and LeBron
James.
It wouldn’t have been possible if
not for Gasol’s off-season routine.
He starts a typical summer day
with a morning workout before he
visits his garden, picks whatever
looks best and makes it for lunch.
Gasol finds the process meditative
even before he takes a bite.
“Not only because it nourishes
my body, but because it helps my
mind,” Gasol said. “It’s a time
when I completely relax and think
about nothing—just being in contact with nature, with the earth,
with stuff that I want to grow. The
stuff that later on is going to take
care of me.”
He added: “I really want to live
longer. It’s a goal of mine.”
It has already helped Gasol prolong his basketball life.
There are times when he talks
about gardening, in fact, that he
could easily be talking about the
NBA instead.
“Every year is different,” he
said. “That’s the best part about it.
Every year, something changes.
You get a better harvest of certain
things and not so good in others.
And you have to figure out why
and how.”
Gasol has to leave his garden
behind when he returns to Mem-
phis every season. He’d like to
bring the fruits and vegetables of
his labor back to the U.S., but he
can’t because of customs law. He’s
considered building a greenhouse
here, but he doesn’t have the right
space or enough sunlight. He discussed his summer hobby with
Fizdale when they visited an urban
farm last year, but it isn’t a source
of conversation with his teammates. “Mainly because they haven’t tried it,” he said.
There are some things that
Gasol hasn’t tried. Winter vegetables, for example. He won’t be able
to experience them until his NBA
career is over.
“All the cauliflower, broccoli,
Brussels sprouts, artichokes,” he
said. “I’m curious to see how they
act.”
In the meantime, there is always next year, and Gasol has already identified the root of last
year’s problem. The sunlight
couldn’t shine on his tomatoes, he
concluded, because it was blocked
by the surrounding trees. “We’re
going to trim them down and
make sure that doesn’t happen
again,” he said.
He admits this plan might not
work. It’s entirely possible that
Gasol encounters another unanticipated tomato issue.
“But hopefully not,” he said.
“Because I really like tomatoes.”
MLB PLAYOFFS
BY BRIAN COSTA
The New York Yankees pulled off
one upset by knocking off the
Cleveland Indians in the division
series. They are a win away from
an even more improbable ALCS
victory over the Houston Astros.
Should they go on to defeat the
Los Angeles Dodgers in the World
Series, they would become the first
team in baseball history to beat
three 100-plus-win teams in a single postseason.
But what’s stunning about the
Yankees isn’t merely their ability
to beat teams that were believed to
be superior. It’s how they’ve become the baseball version of a banana peel, causing their opponents
to face-plant in ways that are both
spectacular and unexpected.
Corey Kluber was the untouchable ace of the Indians—until he
wasn’t. In two starts against the
Yankees, he never made it past the
fourth inning.
Dallas Keuchel was the Astros’
sure thing—until Wednesday. In
the pivotal Game 5, the Yankees
socked their hitherto nemesis for
four runs in 4 2/3 innings.
The Astros’ offense was one of
the best in baseball history during
the regular season. It was so deep
and disciplined, there was no way
it could falter—until it met the
Yankees. Suddenly, Houston is flailing at pitches outside the strike
zone, batting .153 in the ALCS and
averaging just 1.8 runs per game.
“We’ve lost a little bit of our offensive adjustments and a little bit
of our offensive mojo,” Astros
manager A.J. Hinch said. He
blamed it partly on “anxiety.”
It is tempting to merely credit
the Yankees for playing as well as
they have against formidable competition. But the most impressive
thing they have done is figure out
how to take possession of other
humans and leave them with no
memory of how to play baseball.
The Yankees displayed this trait
during the regular season. Opponents made 132 errors against
them, the most against any team in
the majors by a wide margin. The
Yankees reached base on errors 71
times, again easily the most in the
majors. But their savvy use of sorcery has increased in October.
The Indians committed fewer errors than any other team in the AL
during the regular season. Then, in
the last two games of the division
series, needing only a win in one of
them…poof! Cleveland committed
seven errors.
Only one regular third baseman
committed fewer throwing errors
this year than Houston’s Alex Bregman. Naturally, in the fifth inning
of Game 5, Bregman’s throwing error allowed Chase Headley to reach
second, paving the way for a tworun Yankees inning that chased
Keuchel from the mound.
That came one night after Headley fell down between first and
second base, only to reach second
safely when the Astros’ relay
throw curiously went to first instead. The Yankees went on to
score four runs in the inning to
take the lead in a series-tying win.
“That was the biggest play of the
game,” Yankees third baseman
Todd Frazier said. “That changes
the whole game if he’s out.”
In Game 3, Cameron Maybin
chased after a soft pop fly off the
AL BELLO/GETTY IMAGES
HOW THE YANKEES BECAME
BASEBALL’S BANANA PEEL
Houston is flailing at pitches outside the strike zone, batting .153 in the ALCS and averaging just 1.8 runs per game.
bat of Yankees first baseman Greg
Bird into the left-field corner. Yet
as he closed in on the ball, with
plenty of room between him and
the wall, he inexplicably stopped.
“I kind of froze,” he said.
The ball bounced off the warning track and into the stands for a
ground-rule double that started a
five-run Yankees rally. “Just one of
those weird plays,” Maybin said.
To some extent, the Yankees
could thank their fans for flummoxing the Astros during three
games in New York. The Astros
looked rattled. “You hear things
out there,” center fielder George
Springer said after Game 5. Things
he wouldn’t repeat on camera?
“Stuff you won’t repeat in 20
years,” he said.
But the Astros’ sudden offensive
malaise has spanned all five
games, including the first two in
Houston. This was a lineup that
appeared foolproof, and not just
because of its productivity. Houston was the rare team that hit for
both power and contact, finishing
second in the majors in home runs
and last in strikeouts. It had depth
to boot, with virtually no soft spot.
But the Astros’ lineup in this series has been little more than its
3-4-5 hitters—Jose Altuve, Carlos
Correa and Yuli Gurriel—who have
driven in seven of their nine runs.
Those are the only Astros regulars
hitting above .200 in the series.
Springer credited the Yankees’
pitchers for working the edges of
the strike zone. “They’ve done a
very good job of staying on the
margins and not throwing many
balls over the heart of the plate,”
he said. But Hinch also pointed to
the Astros’ approach, such as trying to pull the ball too much
against Masahiro Tanaka in Game
5. “We haven’t stayed in our game
plan well enough,” he said.
Whatever the cause, the result is
that when the Astros have connected with the ball, they’ve hit it
weakly, at a fielder or both. The
Astros saw 31% of their balls in
play result in hits this year, tied
for the highest mark in the AL.
That figure has fallen to just over
18% in this series, which would be
the lowest by any team ever in an
LCS, according to Stats LLC.
On Friday, the Astros will return
to Minute Maid Park, where they
beat the Yankees twice last weekend. They will start Justin Verlander, who dominated the Yankees
on the mound in Game 2.
“We have a good team and we
can’t forget that,” Bregman said.
—Jared Diamond contributed to
this article.
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THE WALL STREET JOURNAL.
OPINION
The Fusion Collusion
Washington is
obsessed with
the word “collusion” but has
little understanding of its
POTOMAC true meaning.
The confusion
WATCH
might explain
By Kimberley
why D.C. has
A. Strassel
missed the big
story of collusion between Fusion GPS and
the Democratic Party.
To read the headlines, a
poor, beleaguered oppositionresearch firm was humiliated
and constitutionally abused
this week by partisan Republicans on the House Intelligence
Committee. Fusion’s lawyers
sent a 17-page letter to the
committee’s chairman, Rep.
Devin Nunes, accusing him of
misdeeds, declaring his subpoenas invalid, and invoking a
supposed First Amendment
right to silence. Yet the firm’s
founders, the story went, were
hauled in nonetheless and
forced to plead the Fifth. “No
American should experience
the indignity that occurred today,” Fusion’s lawyer, Joshua
Levy, declared.
Fusion is known as a ruthless firm that excels in smear
jobs, but few have noticed the
operation it’s conducting
against the lawmakers investigating it. The false accusations
against Mr. Nunes—that he’s
acting unethically and extralegally, that he’s sabotaging the
Russia probe—are classic.
This is a firm that in 2012
was paid to dig through the
divorce records of a Mitt
Romney donor. It’s a firm that
human-rights activist Thor
Halvorssen testified was hired
to spread malicious rumors
about him. It’s a firm that financier Bill Browder testified
worked to delegitimize his efforts to get justice for Sergei
Magnitsky, a lawyer beaten to
death in a Russian prison.
It’s the firm behind the infamous “dossier” accusing Donald Trump of not just unbecoming behavior but also colluding
with Russia. Republicans are
investigating whether the Fusion dossier was influenced by
Russians, and whether American law enforcement relied on
that disinformation for its own
probe.
But Fusion’s secret weapon
in its latest operation is the
Democratic Party, whose most
powerful members have made
protecting Fusion’s secrets
their highest priority. Senate
Democrats invoked a parliamentary maneuver in July to
block
temporarily
Mr.
Browder’s public testimony.
Rep. Adam Schiff, the Democratic ranking member on the
Intelligence Committee, has
been engineering flaps to undercut and obstruct Mr.
Nunes’s investigation. Democrats on the House Ethics
Committee have deep-sixed
what was meant to be a brief
inquiry to clear Mr. Nunes so
as to keep him sidelined.
Then there is the intel committee’s meeting this week.
Despite the spin, forcing Fusion to appear was Republicans’ only recourse after
months of stonewalling. Fusion’s letter ludicrously claimed
that Mr. Nunes’s subpoenas
were invalid, which essentially
forced the committee to show
otherwise. It was a question of
authority.
Florida Rep. Tom Rooney
put the Fusion attendees
through a series of questions
not out of spite but to clarify
finally just what topics the
firm is refusing to talk about.
The Fifth Amendment doesn’t
provide protection against
Democrats are trying
to protect the firm’s
secrets—so the GOP
should keep digging.
answering all questions. It only
protects against providing selfincriminating evidence. It is
therefore revealing that Fusion
took the Fifth on every topic—
from its relationship with British spook Christopher Steele, to
the history of its work, to its
role in the dossier.
The untold story is the Democrats’ unprecedented behavior.
Mr. Rooney had barely started
when committee staffers for
Mr. Schiff interrupted, accused
him of badgering witnesses,
and suggested he was acting
unethically. Jaws dropped. Staff
do not interrupt congressmen.
They do not accuse them of
misbehavior. And they certainly
do not act as defense attorneys
for witnesses. No Democratic
lawmakers had bothered to
come to the hearing to police
this circus, and Mr. Rooney told
me that he “won’t be doing any
more interviews without a
member from the minority
present.”
Private-sector lawyers also
tend not to accuse congressmen of unethical behavior, as
Mr. Levy did in his letter to Mr.
Nunes. But Fusion’s legal eagle
must feel safe. He’s former
general counsel to the Senate’s
minority
leader,
Chuck
Schumer. He has also, I’m told
by people familiar with the
committee’s activities, more
than once possessed information that he would have had no
earthly means of knowing,
since it was secret committee
business. Consider that: Democratic members of Congress or
their staff providing sensitive
details of an investigation to a
company to which the committee has given subpoenas.
The Washington narrative is
focused on special counsel
Robert Mueller’s probe. But
the ferocious pushback and
unseemly tactics from Democrats suggest they are growing
worried. Maybe the real story
is that Democrats worked with
an opposition-research firm
that has some alarming ties to
Russia and potentially facilitated a disinformation campaign during a presidential
election.
The media has its own conflict of interest, since it would
prefer nobody find out about
its years of, ahem, colluding
with Fusion. Don’t expect any
investigative reporting. But
also don’t believe the stories
about GOP harassment. The ferocity of the Fusion-Democrat
campaign is proof Republicans
are looking in the right place.
Write to kim@wsj.com.
Christian Missionaries Against Colonialism
HOUSES OF Critics
of faiths. These Congregational- John Paton Davies Jr. and Hannah Arendt had AngloWORSHIP
C h r i s t i a n ists, Methodists and ecumenical John S. Service were the most Protestant counterparts whose
By David A.
Hollinger
missionaries
often write
them off as
pawns of imperialism, destroying native
cultures as they spread their
religion and their racist beliefs. There’s a grain of truth
to this: Protestant missionaries throughout American history did promote colonialism
and prejudice. But then upon
returning home many did the
opposite. Men and women
sent abroad to make the world
look more like the U.S. wound
up, paradoxically, trying to
make the U.S. look more like
the world.
During the first half of the
20th century, American missionaries began developing relatively generous attitudes toward the people they had been
taught to regard as heathen
and backward, if not inferior.
Deep and sustained immersion
in foreign communities challenged inherited stereotypes.
Missionaries and their children
eventually became some of the
most conspicuous opponents
of colonialism and racism.
As early as the 1920s missionaries were telling their
sponsors back home that
they wanted to cut back on
preaching and focus instead
on social service. This idea
sharply divided the community of faith. Fundamentalists
treated any weakening of the
program of conversion as
heresy. Yet the better-educated liberals who later came
to be known as “mainline
Protestants” voiced increasing respect for Hinduism,
Buddhism, Islam and other
groups applied their cosmopolitanism to national and world
affairs. The women’s missionary boards were persistent critics of Jim Crow at home and
colonialism abroad.
Missionaries’ effect on public life was especially pronounced in the 1940s. World
War II had created a new demand for fluency in non-European languages. Missionaries
and their children became diplomats, intelligence officers,
journalists and academics,
bringing to their work real
knowledge of the history and
cultures of “the Orient.” When
President Roosevelt wanted to
meet with King Ibn Saud of
Saudi Arabia in 1945, it was a
son of missionaries, Marine
Col. William Eddy, who arranged the meeting and
served as translator. Eddy had
impressed the king with his
ability to recite long passages
from the Quran in several
Arab dialects.
The missionary contingent
was uniquely influential in advancing human rights during
and after the war. Former missionaries were the earliest and
best-organized critics of the
internment of Japanese-Americans. Missionary son Edmund
Soper’s “Racism: A World Issue” (1947) was one of the
most comprehensive and trenchant attacks on white supremacy written by any white
American before the 1960s.
Government officials with
missionary experience were
usually more favorable than
their colleagues toward anticolonial and nationalist
movements. Missionary sons
famous of the “China Hands”
purged from the U.S. foreign
service during the era of
McCarthyism for trying to
achieve a working relationship with Mao Zedong’s communists. Kenneth Landon, a
former missionary, wrote the
earliest document in what became the Pentagon Papers.
His dispatch was posted in
1946 after 10 days of private
talks with Ho Chi Minh.
In their time overseas
they developed an
appreciation of other
religions and cultures.
In academia, missionaryconnected Americans led a
move to broaden the curriculum. Colleges and universities had been slow to incorporate the non-European
world into their classes and
research programs. The most
widely appreciated of them
was missionary son Edwin
Reischauer at Harvard. But
half the presidents of the Association for Asian Studies
during the two decades after
World War II were either former missionaries or the children of missionaries.
Missionary cosmopolitans
tended to specialize in Asia,
while the Jewish intellectuals
of the same period focused on
Europe. Popular culture and
scholarship have rightly celebrated the role of Jews in
broadening American public
life. But Lionel Trilling and
de-provincializing influence
has not been recognized.
One was China-born John
Hersey, author of the 1946
classic “Hiroshima.” Another
was Lt. Col. Sherwood Moran,
who persuaded the Marine
Corps to adopt humane techniques for interrogating Japanese prisoners of war. Moran,
who had been a missionary in
Japan for a quarter-century
before enlisting in the service,
wrote a manual instructing
Marines to treat Japanese
captives as “brothers.” Yet another case was China-born
Henry Luce, the publisher of
Time and Life. In supporting
American global hegemony
through his vision of an
“American Century,” Luce was
out of sync with most missionary-connected Americans,
yet he was a formidable voice
for greater public attention to
Asia.
Americans with missionary
experience did not all think
alike, as Luce’s example shows.
But in one arena of public life
after another, they championed the interests of nonwhite
peoples within the U.S. and
throughout the world. Among
20th-century whites, missionary-connected men and women
were some of the most determined and influential critics of
white supremacy.
Mr. Hollinger, a professor
emeritus of history at the University of California, Berkeley,
is the author of “Protestants
Abroad: How Missionaries
Tried to Change the World but
Changed America,” out this
month from Princeton.
Hail to the . . . Manager?
By Michael Taube
T
he Toronto District
School Board has announced it will stop using the word “chief” for all
job titles, out of respect for
Native communities. The 12
staffers who currently hold
this title will henceforth be
called “managers.”
Canada’s political left has
gone overboard again. For one
thing, the word “chief” has no
history or association with
Native Canadian culture. The
word comes, by way of 14thcentury Middle English, from
the Old French chief (or chef),
based on the Latin caput,
meaning “head.”
Uh-oh. After all the problems Canada has had with bilingualism, could its Frenchspeaking community face the
wrath of English Canada over
this?
Meanwhile, “chief” has a
positive, rather than negative,
connotation in society. Merriam-Webster defines it as a
title given to someone “of
greatest importance or influence” who has been “accorded
highest rank or office.”
An English Canadian
ban on the Frenchderived word ‘chief.’
That’s why Canada has police chiefs, fire chiefs, a commander in chief of the Canadian Armed Forces and a chief
of staff to the prime minister,
among other things.
Maybe that explains why
Native Canadian communities
have also used this word on a
regular basis. The Assembly of
First Nations, the largest organization representing indigenous peoples in Canada, is
led by National Chief Perry
Bellegarde. The Congress of
Aboriginal Peoples’ leader is
National Chief Robert Bertrand. Many Native Canadian
tribal leaders are also known
as chiefs.
There hasn’t been any uproar about the use of the
word “chief” from English Canadians, French Canadians or
Native Canadians. Yet Duke
Redbird, a poet who is the Toronto school board’s curator
of indigenous arts and culture,
told CBC News that “we’re
very happy that the change
was made,” so that the word
would stop being used “in a
pejorative way to identify any
Indigenous person.”
So, this issue is chiefly
about the Toronto school
board’s fragile worldview
rather than its chiefs.
As in the U.S., the quality
of public education in Canada
has become a serious issue.
How can Torontonians ever
trust a public school board to
teach and preserve our rich
history when it’s unwilling to
learn about the history of a
person, place or thing before
condemning it publicly?
My hope is either Toronto
Mayor John Tory, Ontario
Premier Kathleen Wynne or
Prime
Minister
Justin
Trudeau will step in and repudiate this decision. Maybe the
board will then reconsider its
preposterous strategy, which
has helped make Canada a
laughingstock on the world
stage yet again.
If not, Canadians better get
used to saying, “Hail to the
Manager!”
Mr. Taube, a Troy Media
syndicated columnist and political commentator, was a
speechwriter for former Canadian prime minister Stephen
Harper.
BOOKSHELF | By Eric Felten
Is That
All There Is?
Midlife: A Philosophical Guide
By Kieran Setiya
(Princeton, 186 pages, $22.95)
A
pproaching 50, Leo Tolstoy had the blues—grandiose
blues, but blues nonetheless. So much that had animated his life had lost its savor. As he later recorded
in “A Confession,” he asked himself at the time: “Very well;
you will be more famous than Gogol or Pushkin or Shakespeare or Molière, or than all the writers in the world—and
what of it?” Now that’s a midlife crisis.
Middle-aged dissatisfaction has been around for ages,
but as Kieran Setiya notes in “Midlife: A Philosophical
Guide,” the midlife crisis, recognized as such, is of more
recent vintage. It was given a name in 1965 by psychanalyst
Elliott Jaques in his “Death and the Mid-Life Crisis” and
was wildly popularized in the 1970s by journalist Gail
Sheehy in “Passages: Predictable Crises of Adult Life.”
Before long it was expected
that, hitting his 40s, Mr.
Gray Flannel Suit would have
a Peggy Lee moment—asking,
“Is that all there is?”—and
respond by chasing co-eds or
giving up banking for pottery.
For all its pop-culture cred,
the whole idea has always bordered on the cartoonish. More
typical than a “crisis” is a midlife malaise, less a time of radical breaks than a period of the
blahs. Mr. Setiya, a philosophy
professor at MIT, works from
the view that “the midlife crisis
is a predictable dip in life-satisfaction as one reaches middle age, not the
tumultuous angst of the original myth.”
Mr. Setiya hopes to lift sufferers out of this dip and help
them flourish by conveying the insights of modern philosophy. His method, he says, is “not that of systematic social
science but of attention to lived experience.” Given the
dominance of social psychology and psych-lab studies these
days, it is bold of him to declare: “I cannot report on results established in the philosophy lab, asking that you take
them on trust. There are no such results.”
So what causes our halftime anomie, and can the causes
be reasoned away? The midlife problem is real enough:
There’s the growing sense of life being just one thing after
another, what Schopenhauer identified as an endless series
of projects we’re anxious to finish and then disappointed to
have done with. There’s the inevitable regret about choices
made and a claustrophobic sense of those choices having
foreclosed other options. There is the realization that one
is no longer young—hastened by the impertinent prospect
of mortality, our own and that of the people we love.
Philosophy may indeed be handy in thinking through
regret—it might be good to recognize, for example, the
lack of logic in worrying over a long-gone decision that
can’t be undone. Mr. Setiya notes that wishing for a life
that doesn't include our mistakes would mean—since small
changes can have big effects over time—desiring a different life entirely. For parents, such a desire entails wishing
away the existence of the particular children they love. As
Mr. Setiya puts it: “You have reason to be glad that those
mistakes were made.”
The midlife ‘crisis’ is more often a midlife
malaise—a time of monotony and dissatisfaction
rather than a radical break from the past.
What about our dismal sense that, having set off on one
path, we’re missing out on what so many other paths have
to offer? The only way to escape that worry, Mr. Setiya
observes, is to wish for fewer choices. “Only a drastic
impoverishment in the world, or your response to it,” he
writes, “could shield you from dismay.”
The acid test for the philosophical approach to midlife is
whether it can calm our minds about something as implacable as death. Mr. Setiya gives it the old college-professor
try: Why worry about being dead, he argues, if it is a nothingness equivalent to not yet having been conceived? We
don’t anguish over the time before we existed, so “temporal
neutrality” demands that we not get worked up over the
time after we exist either. Feel better? I didn’t think so.
For a philosophy professor, Mr. Setiya can be refreshingly unstuffy. He doesn’t see a flashy sports car as a midlife crisis-mobile, that trite substitute for lost youth and
virility. No, he sees it as an opportunity to change from
goal-oriented, utilitarian thinking to a life-affirming
experience of being in the moment: One changes “focus
from the value of getting there to the value of being on the
way.” Feel free to try that explanation out when your
skeptical spouse spots the new Alfa Romeo in the driveway.
As Mr. Setiya approaches the end of his philosophical
meditation on midlife, he veers into an embrace of a different sort of meditation—the secular pop-Buddhist sort. It’s
an abrupt and disconcerting coda. Instead of celebrating
the life of reason, all of a sudden our philosopher is championing “the therapeutic use of mindfulness meditation.”
He even starts falling back on the authority of—say it ain’t
so—“ground-breaking research” by social psychologists,
who supposedly demonstrate the rejuvenating effects of
“attention to the present.”
“At the risk of embarrassment,” Mr. Setiya writes, “let
me admit how close we are coming to the wisdom of
Eckhart Tolle, Oprah Winfrey’s spiritual guru, in his 1997
blockbuster, The Power of Now.” Embarrassment aside, did
we really just hunker down and grapple with Schopenhauer
so that we could arrive at the wisdom of Oprah’s guru?
Tolstoy, by the way, solved his late-middle-age crisis
through a sort of reasoning that might seem quaint to the
modern philosopher. He looked to regain his faith by pondering proofs for the existence of God. It was in uniting
with God, Tolstoy wrote, that “the force of life was renewed
in me, and I again began to live.” There’s more than one
way to avert a crisis.
Mr. Felten is managing editor of the Weekly Standard.
His most recent book is “Loyalty: The Vexing Virtue.”
Coming in BOOKS this weekend
Adams and Jefferson divided • Arthur Schlesinger Jr.
• Philip Pullman’s new trilogy • Painting the
dinosaurs • How to plan a crusade • Spirit photography
• Sam Sacks on short stories • & much more
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A14 | Friday, October 20, 2017
OPINION
P
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
A Fed for a Growth Economy
The Boy Scouts Move Their Camp Over Gender
resident Trump is finishing his inter- ticipating little growth impact from Mr. Trump’s
views to choose the next Federal Re- deregulation or tax reform.
serve Chairman, and the same voices
This fits with the Fed’s dominant neowho oppose him on everyKeynesian worldview that tax
thing are chanting in unison— Trump needs a leader at cuts aren’t pro-growth and the
reappoint Janet Yellen or
U.S. is fated to a long era of
the central bank who
choose her Republican run“secular stagnation.” That
supports faster growth. isn’t what Mr. Trump camning mate, Jerome Powell. Mr.
Trump should consider the
paigned on, and the question
implications for the economy,
is whether a Yellen-Powell Fed
which will be a major part of his legacy.
would accommodate faster growth or feel it
The Yellen-Powell advocates are telling the must rapidly increase interest rates. Unless it
President that they have avoided big monetary changes its economic models or expectations,
mistakes, that they favor low interest rates, and the current Fed won’t.
i
i
i
there is no reason to take a risk on someone
All of which argues for new leadership. Ms.
new. Some in the Trump Treasury are also saying that Mr. Powell is someone they can domi- Yellen is tied to the current models and assumptions, and nothing in Mr. Powell’s six years as
nate. So go with the status quo.
But what someone should also tell Mr. a Fed Governor has suggested a different point
Trump is that the monetary status quo won’t of view. His many speeches have gone along
hold no matter who is Fed chair. Ms. Yellen has with the status quo at the time, even as many
presided over an unusually placid financial pe- of his colleagues have dissented in word or vote.
riod, not least because economic growth was He is not likely to override the staff.
The White House has leaked that two of Mr.
so slow through the Obama Presidency.
That isn’t likely to last—at least not if Mr. Trump’s finalists are Kevin Warsh and John TayTrump’s tax and deregulatory policies succeed lor. Both would be change agents at the Fed.
in spurring faster growth. The Yellen Fed is al- Both are also frequent contributors to our pages
ready raising rates and unwinding the $4.5 tril- and have been right in their diagnoses of the
lion balance sheet it built over eight years. The slow-growth policies of the Obama era.
Mr. Taylor, a Stanford economist who has a
question Mr. Trump should ask is who should
run the Fed during this uncertain monetary monetary rule named after him, would bring actransition, especially if the economy leaves its ademic respect to the Fed’s Open Market Committee. He worked in the George W. Bush Treaslow-growth doldrums.
One certainty is that the Yellen-Powell Fed be- sury and prevented currency panics in Argentina
lieves in the Phillips Curve trade-off between un- and postwar Iraq from spreading.
Mr. Warsh is a former Fed Governor who
employment and inflation. Once the economy
hits what the Fed staff considers to be “full em- was part of Ben Bernanke’s inner circle during
ployment,” its economic models signal the need the 2008 financial panic. He correctly diagfor higher interest rates. With the jobless rate al- nosed the weak capital and liquidity positions
ready at 4.2%, the Fed staff are worried that ris- of the banking system, even as regulators at the
ing wages will push up prices, and so interest New York Fed said the problem was confined
to Bear Stearns.
rates will have to rise to prevent inflation.
This crisis experience is a major recommenYet as Ms. Yellen has acknowledged with
some puzzlement, inflation has been remark- dation for the Fed chair because we may face
ably contained. She can’t explain why because financial turbulence as the Fed raises rates and
it doesn’t fit the Fed’s current economic mod- unwinds its bond portfolio. As Mr. Warsh
els. Another issue is how much labor slack ex- warned when he left the central bank in 2011,
ists despite the low jobless rate. The labor the Fed has pushed investors into riskier assets
participation rate remains at low levels not with uncertain consequences. Who knows what
seen since the 1970s, and one reason is the de- might show up naked as the tide recedes? Mr.
parture of prime-age males from the work- Warsh also has credibility with the leading cenforce. Faster growth and rising wages might tral bankers in China, Europe and Japan that
coax them out of dad’s basement or too-early would be essential in any new currency or financial panic.
retirement.
More even than Supreme Court Justices, preThe Yellen-Powell Fed also appears to doubt
that the economy can grow faster. Each quarter dicting the performance of a Fed Chairman is
Fed Governors and regional bank presidents re- difficult. But the best guides are experience and
lease estimates for future growth. At the Sept. bedrock economic principles. Mr. Trump and
20 meeting, they raised their projection to 2.4% the country will do better with a fresh voice
for this year. But their median estimate for 2018 who knows how to manage in a crisis and beis a mere 2.1%, followed by 2% in 2019 and 1.8% lieves that faster economic growth without inin 2020 and beyond. In other words, they are an- flation is possible and necessary.
I
Another Republican Retirement
f you’re reading the tea leaves about the
2018 elections, one key sign to watch is incumbent retirements. The announcement
Thursday by Rep. Pat Tiberi, a moderate nineterm Member from Ohio, that he is quitting
Congress early is another bad omen for the Republican majority.
The 54-year-old Mr. Tiberi said he is leaving
his 17-year career to become president of the
Ohio Business Roundtable. He’ll make more
money in that job, but his departure also no
doubt speaks to the frustration of trying to operate in today’s Washington.
This should be a culminating policy year for
Republicans who have waited to control the
O
House, Senate and White House but have been
stymied by party divisions and petty animosities. Mr. Tiberi runs the health subcommittee
on Ways and Means and also chairs the Joint
Economic Committee.
Mr. Tiberi hails from a heavily Republican
district around Columbus that he won with 67%
of the vote, and a special election will be held
to fill his seat. But the more open seats there
are, the better chance Democrats have of picking up the 20-some seats they need to retake
the majority. And the more vulnerable the GOP
looks, the more incumbents will choose to retire. Republicans had better pass tax reform, or
Mr. Tiberi will look like a prophet.
John Kelly’s Heroes
ver the past nine months, Donald forms them and, in time, support from those who
Trump’s cage match with the Washing- served alongside their son or daughter.
ton press corps has turned into an unedMr. Kelly explained that a personal call from
ifying national spectacle. Too
the President is in fact not
The White House chief what families expect or want.
often, the serious business of
the nation has been pushed
it has become something
of staff teaches a lesson But
aside so that the press and Mr.
of a presidential tradition, and
in grief and sacrifice. Mr. Trump asked Mr. Kelly
Trump could go tit for tat, like
children on a schoolyard. On
what he should say.
Thursday, an adult finally
Mr. Kelly related what his
stepped into the room.
friend and “my casualty officer,” Marine GenJohn Kelly, Mr. Trump’s chief of staff and a eral Joseph Dunford, told him when relating
retired four-star general, addressed White that Mr. Kelly’s own son had been killed in AfHouse reporters on this week’s dispute between ghanistan: “He said, Kel, he was doing exactly
the press and the President. That is the contro- what he wanted to do when he was killed. He
versy around Mr. Trump’s call to the mother of knew what he was getting into by joining that
a U.S. soldier who was killed during an ambush 1%. He knew what the possibilities were because
in Niger recently.
we’re at war.”
As anyone who follows media reports knows,
That, essentially, is what Mr. Trump said to
the President’s call to this mother grew into a the Gold Star mother, no doubt less eloquently.
personal feud between Mr. Trump and a Demo- Standing in the White House press room, reflectcratic Congresswoman who disclosed what the ing on a political spat over a dead soldier, Mr.
President said. It then produced long newspaper Kelly said, “I thought at least that was sacred.”
reports examining the President’s relationship His remarks are a rebuke to the Congresswoman
with every identifiable Gold Star family during for politicizing a private phone call, and to the
his term.
press corps for attempting to turn grief and sacIt took awhile for Mr. Kelly to get around to rifice into a hammer against Donald Trump—
talking about that phone call. Instead, he spent who, as usual, made things worse by lashing out
some time offering what we in journalism—or in response.
anyone purporting to be engaged in a serious
John Kelly made a lot of people look small
line of work—would call context. Mr. Kelly de- Thursday. The man who led soldiers in combat in
scribed what happens when a U.S. soldier or Ma- Iraq described spending an hour this week walkrine—“the best 1% this country produces”—gets ing in Arlington Cemetery, collecting his thoughts
killed in action. What he described was a mili- and looking at headstones, some with names of
tary process that is graphic, emotionally intense Marines who Mr. Kelly said were there because
and, most of all, untouchable.
they did what he had told them to do.
Untouchable, as Mr. Kelly made clear, in the
Surely there is a sense in which the continusense that what has happened is so grave, so per- ing political life of Washington is possible besonal and so difficult that the reality of pushing cause of that sacrifice. That was John Kelly’s
through it comes down to an encounter between point. It would be nice to think the rest of the
the fallen soldier’s family, the officer who in- city could get it.
Regarding your editorial “The BoyGirl Scouts of America” (Oct. 12):
Though never having been a Boy
Scout myself, I was always an admirer
of the Boy Scouts of America and for
many years supported them financially. I was proud of how for so many
years they stood up to the culture of
political correctness and adhered to
their principles of how best to mold
boys into men. Alas, they eventually
yielded to the bullies on the left and
the organization has been fundamentally transformed.
I used to wonder why those who
don’t care for traditional values would
fight to belong to groups such as the
BSA. I figured that they would want to
build their own organizations and uphold values they believe in. It finally
dawned on me that their primary goal
is to tear down that which they disapprove. The BSA is now one more scalp.
SCOTT SCHERTZER
Miami Beach, Fla.
As long as the Boy Scouts of America have taken the PC path of least resistance by admitting girls to their
ranks, they might as well go all in. In
other words, they should begin selling
Boy Scout cookies at the local mall or
supermarket.
J.A. MCERLEAN, M.D.
Farmington Hills, Mich.
I’m a father of three and a community servant. The Boy Scouts and the
Girl Scouts should wake up and combine into one organization called
Scouts of America. Both organizations
are treasures of our country but are
faced with a world of gender neutrality and declining enrollment. If the
leaders could combine the strengths
of each organization and work together in one organization, I believe
the combined brilliance of boys and
girls growing into leaders as men and
women would be priceless. Let’s not
stop at the BSA admitting girls, let’s
merge both organizations. Families
should not have to choose which
child’s activity gets the road trip.
Make scouting for everyone to further
build strong Americans.
CRAIG F. EHRNST
Greater Boca Raton Beach & Parks
District Commissioner
Boca Raton, Fla.
I’m in the recruiting business. Some
sourcers and recruiters see Eagle
Scout on a résumé and recognize this
rite of passage as one that provides
exposure to seasoned experts (true
mentoring and relationship building)
and training on real community issues
(problem-solving and project completion). We have instant information
about the likely hard and soft skills of
the individual. Receiving the award of
Eagle Scout comes from a choice to
engage in and solve what are sometimes complex issues and certainly
doesn’t arise from a need to be popular. With a few tweaks, there’s something here for both boys and girls.
Good for the Boy Scouts for expanding
this brand.
PAM JOHNSEN
Fairfax, Va.
In 2013, the Boy Scouts of America
effectively redefined “morally
straight” in the Scout Oath. Now the
BSA is, as might be expected, in the
process of redefining “boy.” Mark my
words, the number of boys participating in scouting will continue to decline as BSA leaders rush to make the
program “relevant” and “inclusive.”
Witness the fate of the so-called
mainline Protestant denominations
that have followed the same path in
recent years.
JAMES C. CARPER, PH.D., EAGLE SCOUT
Columbia, S.C.
Gene Editing Is Not Ready for Prime Time
From what I recently read in “The
Gene” by Siddhartha Mukherjee, editing genes to cure genetic health problems is much more complicated than
Henry Miller alludes to in “Gene Editing Is Here, and Desperate Patients
Want It” (op-ed, Oct. 13).
The reference made to Junjiu
Huang’s use of Crispr to correct the
mutated gene responsible for a blood
disorder suggests an additional comment. In 2015, Mr. Huang performed a
similar experiment on 71 human embryos, resulting in 24 unintentional
mutations of other genes, some of
which are critical to development and
survival. Although Mr. Huang undoubtedly has greatly improved his
techniques, we cannot afford genetic
errors created in the process of correcting a faulty human gene. Gene editing is a very complex activity,
fraught with significant ethical concerns. Our FDA rules for editing human genes need to be tight enough to
forbid inadvertently introducing bad
genes into the human race. We need a
serious debate among genetic scientists on this issue before any FDA rule
changes.
VERN ZANDER
Carrollton, Ga.
It is a mistake to characterize legitimate concern for the moral ramifications of scientific breakthroughs like
Crispr as “excessive introspection.”
Scientific advances that both result
from experimentation on human embryos and at the same time can lead
to altering the germ line for future
generations are about as serious as research can get.
It is chronological snobbery to dismiss the ethics of the ’70s as anachronistic. Consider the highly relevant
admonition coming to us from well
before the last century, namely “Thou
shalt not kill.”
Let’s have more excessive introspection from the FDA and the NIH
and less “technological imperative.”
ELIZABETH HANINK
Inglewood, Calif.
Trump, Corker: GOP Circular Firing Squad
Regarding your editorial “The
Truth About Trump and Corker” (Oct.
10): You criticize President Trump for
“treating even foreign heads of state
as if they are Rosie O’Donnell.” What
a poor choice of words. I think foreign leaders and Rosie O’Donnell
should be treated the same way: with
dignity and respect. I would hope that
your editorial board would believe
that President Trump’s taunts are inappropriate whether directed at powerful leaders or private citizens, but
nothing in the editorial makes such a
position clear. Is it okay to mock Ms.
O’Donnell because she’s a woman?
Someone who is disliked by members
of Mr. Trump’s voting block?
WARREN ADLER
Kingsport, Tenn.
As Karl Rove duly notes, President
Trump had better tread lightly in
abandoning Ronald Reagan’s 11th
commandment—that Republicans
should refrain from eating their own
Return of the Loan Sharks
Regarding your editorial “President Cordray Strikes Again” (Oct. 6):
Good news for the loan sharks! This
regulatory effort, made in the name
of protecting the poor, will move
many back into the underground
economy. Consumer Financial Protection Bureau Director Richard Cordray
forgets that if he closes the door to
transparent lending, the people who
need money will go to whatever lending source they can find.
JON LINKER
Houston
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
(“Trump, Corker and the Circular Firing Squad,” op-ed, Oct. 12).
The president got elected on a populist-agenda mandate that the GOP
establishment often seems at odds
with. The Business Roundtable-free
trade troubadours, for example, do
not have the president’s back on
building the wall, E-Verify and sanctioning sanctuary cities. And the McCain-Graham neoconservative wing of
the party cannot abide the president’s
reluctance to re-engage in Syria’s civil
war or to aggressively confront Moscow over Crimea and Ukraine.
The electoral departure of Sen.
Bob Corker is a footnote in this
larger drama, but it’s worth noting
that his objection that the administration’s tax cuts and reform proposal might add to the deficit reveals
an un-Reaganite distrust in the
power of tax cuts to pay for themselves. So what kind of Republican
are we losing here?
JAMES HYLAND
Beechhurst, N.Y.
Pepper ...
And Salt
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Friday, October 20, 2017 | A15
* *
OPINION
Efficient Markets Need Guys Like Me
By Paul Singer
Activists and index funds
are natural allies. There’s
no conflict between shortand long-term value.
intensifying debate over where their
allegiances should lie. On one side is
a small class of legal, banking and
public relations professionals who
advise underperforming corporations. On the other are the activist
investors who seek to hold those corporations accountable.
There is a fair debate to be had
about the appropriate balance of
power between public corporations
and their shareholders. But the debate has been badly skewed by a false
narrative. “Anti-activist” advisers
have attempted to drive a wedge between activist investors and index
funds by suggesting that activists are
interested only in short-term gains at
the expense of long-term value. This
divisive framing is objectively false
and has done harm to the goal of
generating sustainable returns for all
investors.
For starters, all of a company’s
CHAD CROWE
T
he largest proxy battle in
U.S. history ended last
week in a near tie, leaving
Procter & Gamble without
the clear support of its
shareholders and activist shareholder
Nelson Peltz without a board seat.
P&G’s three largest shareholders
split their votes: Vanguard sided
with P&G, while State Street and
BlackRock voted almost all their
shares for Mr. Peltz. The stakes held
by these giant index funds were so
large that had any of them voted differently it would have changed the
outcome—either a clear victory for
Mr. Peltz or a clear mandate for P&G
management.
This power dynamic illustrates
the enormous influence that the
three largest index-fund firms (together with other passive institutional investors) have acquired over
such contests—and helps explain an
shareholders are more aligned with
each other than they are, say, with a
group paid to defend corporations
from shareholder challenges. Index
funds and activist investors share the
goal of generating returns for their
investors, even if they go about it in
different ways.
The primary idea behind passive
index-fund investing is the efficientmarket hypothesis: Markets are said
to be efficient because millions of informed investors continuously think
about, research and analyze companies, markets and securities. Thus, all
possible information and insight is
said to be always contained in securities’ prices at all times.
But passive investing is reducing
the percentage of active managers
to the point where they may actually become the minority in a few
years. So who is going to do the
work that theoretically creates efficient markets?
Activist investing provides one
possible answer. Equity activism
means using your voice and voting
rights to improve companies in ways
that maximize value for all shareholders. Seen in that light, index
funds should consider activist investors to be natural allies.
Some index-fund firms have begun
to focus on voting, governance and
the potential benefits of activism.
They’ve deployed teams of smart,
honest professionals to promote best
practices across their firms’ entire
holdings. Certain aspects of corporate governance as a whole have improved—in some cases meaningfully—thanks in part to these
initiatives.
On a company-specific level, however, with thousands of companies to
be evaluated, it is impossible for
these teams to do the kind of comprehensive financial and operational
analysis required to identify corporate situations in need of change.
Activist investors can play this
critical role, so long as the governance teams at large passive investing
firms are willing and able to evaluate
activists’ ideas on their merits. Unfortunately, as soon as an activist shows
up at an underperforming company
with an idea for creating value, the
company’s advisers frequently seek to
make the debate about time horizons.
Index-fund firms are encouraged to
look with suspicion at any idea whose
benefits would crystallize in the near
term—regardless of whether the idea
represents the best possible alternative for shareholders in the long run
as well.
The canard that activist shareholders promote short-term gains at
the expense of long-term value has
been utterly demolished by academic
research. Harvard’s Lucian Bebchuk
examined more than 2,000 activist
events spanning 13 years and found
that these interventions resulted in a
6% rise in stock prices on average
and that targeted companies managed to hold on to these gains, above
their benchmarks, over a five-year
period.
Besides being contradicted by the
facts, the short-termism accusation
makes no logical sense. My firm has
a 40-year track record. Our currency
is our credibility. If our activism did
not create long- and short-term
value, we would have a hard time
persuading management, boards and
other shareholders even to listen to
us, much less implement our ideas.
Activists who push for solely “shortterm” solutions are themselves going
to be “short-term” players.
All shareholders would benefit
from replacing this false distinction
with a new framework for evaluating
activist proposals. Rather than “short
term vs. long term,” how about “good
ideas vs. bad ideas”?
Good ideas create better outcomes
for shareholders. Far too often companies hide behind “long term” as a
way to justify prolonged underperformance. There are good ideas that
create sustained improvements and
can be implemented quickly. Likewise, there are bad ideas that can
take a long time to destroy value.
The benefits of fixing a broken
strategy, getting rid of a bad acquisition, redeploying an underperforming asset, or replacing an ineffective
management team or board may
show up right away in a company’s
stock price, but that immediate result doesn’t diminish the long-term
benefits.
America has a lot riding on the success of its public companies, as do index-fund firms themselves. Important
conversations about strategy, governance, capital allocation, corporate
culture and leadership are being stifled by the divisive, distracting and intellectually dishonest framing of
“short-term vs. long-term.” Instead of
debating time horizons, index-fund
firms and activists should work together to promote the very best ideas
for improving America’s businesses.
Mr. Singer is founder and co-CEO
of Elliott Management Corp.
The Limits of Trump’s Health-Care Order
By Merrill Matthews
G
ive President Trump an A for
effort with his latest executive
order, which tries to expand
health-insurance options for individuals battered by exploding premiums and fleeing insurers. At least
somebody is trying to do something
after congressional Republicans
failed to repeal and replace ObamaCare. While the executive order represents progress, Congress still
needs to act.
Mr. Trump is directing three federal departments—Labor, Treasury,
and Health and Human Services—to
consider ways of providing more flexibility for association health plans,
short-term insurance, and health reimbursement arrangements.
Associations have been offering
their members access to various
types of health coverage for decades. The best known example is
AARP. Those polices are “fully insured,” meaning a licensed health
insurer underwrites them and bears
the risk. And because federal law before ObamaCare left insurance regulation primarily to the states, association-offered policies must comply
with regulations in whichever state
they’re sold.
But there is a safe harbor: the
Employee Retirement Income Security Act of 1974, better known as
Erisa. Widely varying state insurance regulations made it difficult for
large companies with employees in
multiple states to offer uniform coverage to their employees. Erisa allows large employers, as well as
groups of employers known as Multiple Employer Welfare Arrangements, to “self-insure.” This means
the employer, not an insurer, pays
the medical bills.
Erisa pre-empted self-funded
plans from state insurance regulations, so state legislatures and insurance departments have not been able
to micromanage them as they do
small-employer and individual plans.
That freedom made self-funded
plans very popular. For decades medium-size and even small employers
have looked for creative ways to
leave fully insured coverage for a
self-funded plan.
At the margins it will
improve availability
and affordability, but
Congress still needs to act.
Several associations, especially
those representing small employers,
such as the National Federation of
Independent Business and the National Association of Realtors, spent
years trying to persuade Congress to
allow associations to self-insure and
to offer their members the same coverage across state lines largely free
of state mandates. But Congress
never changed the law.
Since the passage of ObamaCare,
however, states are no longer the
driving force behind most insurance
mandates and regulations. Washington is. The health law imposed some
requirements on self-funded plans—
free preventive care, no annual or
lifetime limits, no pre-existing condition waiting period, children as old
as 26 can remain on their parents’
policy, etc.—but ObamaCare’s 10 essential benefits are not mandated.
Most self-funded plans retain at
least some freedom to create their
own benefits package.
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Mr. Trump and congressional Republicans are hoping the Labor Department will identify a way to allow
associations and small employers to
create self-insured plans—or something similar. That change could allow
them to adjust benefits and offer more
affordable coverage to more people. A
more straightforward solution would
be for Congress to change the law.
The health-insurance industry opposes this step because self-funded
plans bypass insurers. Others fret
that association plans will be a “race
to the bottom” of coverage. According to a July 2016 report from the
Employee Benefit Research Institute,
some 60% of the 155 million American workers and their dependents
with employer-provided coverage
are in self-funded plans now and
glad to be there. Would you prefer
less-regulated, self-funded health
coverage from a company like UPS—
or the ObamaCare exchange?
The executive order also seeks to
roll back HHS-imposed restrictions
on short-term, limited-benefit policies, or “bridge policies.” If this measure succeeds, people would again be
able to keep those policies for a year
instead of three months, the limit imposed by the Obama administration.
But such policies have always been a
minuscule part of the insurance market. They are not qualified coverage
under ObamaCare, and purchasers
would still face penalties for being
uninsured. It’s unlikely there will be a
mad dash to enroll in them.
If HHS were to find that purchasing such a policy constituted an approved “hardship” and temporarily
exempt buyers from the mandate’s
penalty, that could help more people
who have little or no affordable
ObamaCare options gain at least
some coverage.
Finally, some employers make taxfree health reimbursement arrangement deposits, which employees use
to pay for certain eligible health-care
costs. Mr. Trump wants to expand
HRA options, though it’s unclear how
much flexibility officials can provide
without changing the law. Still, it
can’t hurt and may help. Expanding
health savings accounts would be
better, because that money belongs
to the individual. But that would
take legislation.
The intent behind Mr. Trump’s executive order—to expand access to
affordable coverage—is spot on. And
it may achieve part of this goal. But
even if federal agencies become creative in their efforts to identify safe
harbors from ObamaCare, it is unlikely to make much difference without action on Capitol Hill.
Mr. Matthews is a resident
scholar with the Institute for Policy
Innovation in Dallas.
Notable & Quotable: Bush
Former President George W. Bush,
speaking in New York, Oct. 19:
No democracy pretends to be a
tyranny. Most tyrannies pretend they
are democracies. Democracy remains
the definition of political legitimacy.
That has not changed, and that will
not change.
Yet for years, challenges have been
gathering to the principles we hold
dear. And, we must take them seriously. Some of these problems are external and obvious. Here in New York
City, you know the threat of terrorism
all too well. It is being fought even
now on distant frontiers and in the
hidden world of intelligence and surveillance. There is the frightening,
evolving threat of nuclear proliferation and outlaw regimes. And there is
an aggressive challenge by Russia and
China to the norms and rules of the
global order—proposed revisions that
always seem to involve less respect
for the rights of free nations and less
freedom for the individual.
These matters would be difficult
under any circumstances. They are further complicated by a trend in western
countries away from global engagement and democratic confidence. Parts
of Europe have developed an identity
crisis. We have seen insolvency, economic stagnation, youth unemployment, anger about immigration, resurgent ethno-nationalism, and deep
questions about the meaning and durability of the European Union.
America is not immune from
these trends. In recent decades, public confidence in our institutions has
declined. Our governing class has often been paralyzed in the face of obvious and pressing needs. The American dream of upward mobility
seems out of reach for some who feel
left behind in a changing economy.
Discontent deepened and sharpened
partisan conflicts. Bigotry seems emboldened. Our politics seems more
vulnerable to conspiracy theories
and outright fabrication.
There are some signs that the intensity of support for democracy itself
has waned, especially among the
young, who never experienced the galvanizing moral clarity of the Cold War,
or never focused on the ruin of entire
nations by socialist central planning.
Some have called this “democratic deconsolidation.” Really, it seems to be a
combination of weariness, frayed tempers, and forgetfulness.
There’s No
Virtue in
Joining an
Angry Mob
By Paula Marantz Cohen
T
he condemnations of Harvey
Weinstein’s egregious behavior have become a deluge.
We’ve seen this before—an ever-increasing tirade against a once-respected figure. It is as though
we’ve learned the habit of outrage
and feel obliged to be even more
dramatically horrified than we were
the last time this kind of news was
revealed.
Woody Allen, admittedly a dubious judge, has been lambasted for
warning against a witch hunt. But
Mr. Weinstein can be guilty and
still be the object of what looks
like a hypocritical hunger for blood.
Where were all these people who
now say they were aware of his behavior a year, a decade, a quartercentury ago? Too afraid to speak
up then but empowered to do so
now when there is a chorus to back
them up. It’s more like a lynch mob
than a witch hunt. A lynch mob is
still a lynch mob, even when its
target is guilty.
Harvey Weinstein’s
actions were egregious.
But high-minded outrage
poses dangers of its own.
The problem here goes beyond
Harvey Weinstein. It is a symptom
of a kind of responsiveness that
has permeated this country on
many levels and on many fronts.
When the media becomes judge and
jury, groupthink sets in and the
mob expresses its indignation. No
one is allowed to doubt or to express sympathy.
In the case of Mr. Weinstein, a
man once lauded for his artistic
taste and enjoyed for his crude but
refreshing New Yorker manners is
now the most egregiously horrible
individual who ever lived, reduced
overnight from a mogul into a
monster—though at the same time
we are told that everyone really
knew what he was all along. Meanwhile, the media continues to relay
one prurient detail after another,
feeding the public’s maw for gossip,
while allowing us to indulge in
high-minded outrage.
There is something deeply worrisome about this kind of flattening
process, both for what it says
about those who never spoke up
until now and for what it says
about our inability to grasp the
complexity of the human condition.
We wonder about trolling on the
internet, but our press encourages
this in its tabloid-style piling on of
reporting—in its inability to contextualize or restrain itself in the
face of the public appetite for more
of the same.
The Weinstein case has its correlative in the political arena. On
both sides of the political spectrum, we seem driven by a need for
dramatic outrage that masquerades
as virtue. Once a case has been
made in the public sphere, on
whichever side, the case gets made
again and again in increasingly
simplistic terms. Any attempt to
see around or outside the established scenario means that you are
a bad person. The deadening, coercive nature of this kind of thinking
is disturbing.
I am upset by what is happening
in our country today. I don’t like
the mean-spirited way our president behaves and expresses himself. I don’t like the way much of
the press, both on the right and the
left, seems intent on smug, simplistic reporting. I don’t like the way
gestures, such as showing exuberance or seeming disrespect on the
football field, have been blown up
to mean something more or other
than they should.
I don’t like the way some college
students have become self-righteous know-it-alls, claiming to be
traumatized by words and texts.
And I don’t like the way many
teachers have been made to feel
they must toe a party line and walk
on eggshells. This is not the way to
nurture democracy, fairness and
human compassion.
Get Harvey Weinstein out of the
newspapers and into the courts. If
convicted, punish him as the law
requires, but remember that he,
like all of us, is a human being. We
have forgotten this about anyone
who has been labeled our opposition, and this has made us a
meaner and ultimately more dangerous country.
Ms. Cohen is a professor of
English at Drexel University, where
she is dean of the Pennoni Honors
College.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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TECHNOLOGY: APPLE WATCH HITS CELLULAR WALL IN CHINA B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2562.10 À 0.03%
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* * * * **
S&P IT g 0.35%
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THE WALL STREET JOURNAL.
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WSJ $ IDX g 0.25%
LIBOR 3M 1.363
NIKKEI (Midday) 21451.78 À 0.02%
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Lyft Bulks Up With $1 Billion in Funding
Valuation rises nearly
50% to $11 billion as
ride-hailing startup
speeds after Uber
BY GREG BENSINGER
AND JACK NICAS
Lyft Inc. is gaining ground
on Uber Technologies Inc.
while its larger ride-hailing rival has been embroiled in
months of corporate drama
and setbacks.
The startup on Thursday
said that it raised $1 billion in
funding led by a venture-capital fund of Google parent Alphabet Inc., giving Lyft financial ammunition as it eyes a
first-time expansion beyond
the U.S. and broadens its driverless-car efforts. The new financing, which comes as Uber
looks to close a multibillion investment from SoftBank
Group Corp., boosts Lyft’s valuation by nearly 50% to $11
billion.
Over the past year, Lyft has
picked up market share in
some cities while pushing into
dozens of new U.S. markets,
driven in part by carefully
crafted marketing that casts it
as the friendlier alternative to
Uber.
Uber, meanwhile, has been
beset by a series of troubling
events, including sexual-harassment allegations, the resignation of longtime Chief Executive Travis Kalanick, a
lawsuit between board mem-
bers, and several federal
probes into its business operations. It only recently hired a
new chief, former Expedia Inc.
CEO Dara Khosrowshahi, who
is trying to file the company’s
depleted executive ranks and
is already dealing with a regulatory spat in London, one of
its biggest markets.
Uber is working to nail
down a proposed investment
from SoftBank that could total
as much as $10 billion, including a direct investment of as
much as $1.25 billion. On Monday, at The Wall Street Journal’s WSJD.Live conference,
Uber board member Arianna
Huffington said she expects
the company will resolve the
weekslong talks within days.
Lyft has raised some $3.6
billion in total funding since
launching under that name in
2012. It is still a distant second to Uber by valuation and
fundraising. Its rival has
raised about $15 billion in equity and debt and landed a
$68 billion valuation last year
while expanding to markets
around the world.
Lyft operates only in the
U.S. but has been looking to
Canada and overseas for possible new markets, according
to people familiar with the
matter. It has moved into dozens of new cities in its home
country in recent months and
met with officials this year in
London, where regulators have
said they would revoke Uber’s
license to operate. Uber is apPlease see LYFT page B2
Funding Picks Up
Ride-hailing startup Lyft is now valued at $11 billion
Lyft's valuation has surged...
$12 billion
$11B
10
...but still trails rival Uber.
Uber
(Global)
$68 billion
Didi
(China)
8
6
$50
Lyft
(U.S.)
$11
4
Ola
(India)
$275
million
2
0
2013
’14
’15
’16
’17
Grab
(S.E. Asia)
$3.5
$3
Note: Valuation prior to 2013 is not available.
THE WALL STREET JOURNAL.
Source: Dow Jones VentureSource
BY JULIET CHUNG
Lee Ainslie’s $10 billion
Maverick Capital Ltd. is offering 0% performance fees to
some investors, the latest bigname hedge fund to debut lower fees after posting
continued losses.
Maverick’s flagship stockpicking hedge fund is down 2%
this year through September
after losing roughly 10% last
year, missing out on the rally
in 2017 that has propelled U.S.
stocks to records. Maverick’s
new “recovery share” class
would let existing clients invest more money in its hedge
funds at 1% management fees
and no performance fees, compared with the 1.75% and 17.5%
fees, respectively, that its clients most often pay.
Hedge funds are turning in
one of their strongest showings in years in 2017, interrupting a string of losses, redemptions and even closures.
Some of the biggest returns
have come from stock hedge
funds, which have posted a
9.6% return on average
through September, according
to data firm HFR.
So-called Tiger Cubs, stock
hedge funds founded by protégés of hedge-fund manager Julian Robertson, of Tiger Management, have been among
the leaders, roaring back from
losses in 2016. Lone Pine Capital, Tiger Global Management and Viking Global Investors have each gained more
than 10%, according to people
familiar with the firms.
Their comeback contrasts
with the continued losses at
Maverick, another Tiger Cub.
At Maverick’s annual investor meeting in Manhattan last
week, Mr. Ainslie said his flagship fund had been hurt partly
by poor stock picking.
Other managers, including
Larry Robbins of Glenview
Capital Management and Alan
Howard of Brevan Howard Asset Management, have made
similar moves to their fees in
recent years following losses.
An investor document said
Maverick’s new share class will
“expire” when a client has
reached his high-water mark, or
the point at which investment
gains make up for any losses.
MARK ELIAS/BLOOMBERG NEWS
Hedge Fund Debuts
0% Performance Fees
An alliance with Wal-Mart could bring Lord & Taylor a boost in web traffic at a time when fewer shoppers visit department stores.
Wal-Mart Courts Lord & Taylor
INSIDE
BY SUZANNE KAPNER
AND SARAH NASSAUER
VOLCKER
TURNS TO HIS
MEMOIRS
STORMS TOSS
RESULTS
AT TRAVELERS
PUBLISHING, B2
INSURANCE, B10
Wal-Mart Stores Inc. is near
a deal to add Lord & Taylor to
its website, part of a broader
effort by the retail giant to
build an online shopping destination that can compete with
Amazon.com Inc., according to
people familiar with the matter.
Wal-Mart, seeking to ramp
up e-commerce sales after
years of sluggish growth,
wants to turn walmart.com
from a discount site into an
online mall that would also
feature higher-end brands, the
people said. For Lord & Taylor,
the alliance could bring a
boost in web traffic at a time
when fewer shoppers are visiting department stores.
Additional brands that
eventually could be included
in the project include men’s
clothing company Bonobos
and online retailer Jet.com,
both of which are owned by
Wal-Mart, as well as other traditional chains, one of the
people said. Financial terms of
the potential Lord & Taylor
partnership
couldn’t
be
learned.
Last year, Wal-Mart bought
Jet, placing its founder Marc
Lore at the head of U.S. ecommerce operations. Then
Wal-Mart made a series of
smaller e-commerce purchases
including Moosejaw, Bonobos
and ShoeBuy, both to expand
its online selection and gain
access to brands built online,
executives have told investors.
Now Wal-Mart aims to
make walmart.com more attractive to premium brands
and high-income shoppers, an
area Amazon has also pursued
in recent years.
Amazon didn’t respond immediately to a request for
comment.
Over the next year, WalMart wants to “elevate the
Walmart.com brands,” Mr.
Lore said last week. The
changes include using blue
branded boxes to ship walmart.com orders, redesigning
the website and working on
partnerships to gain access to
more premium products, Mr.
Lore said.
Last month, Wal-Mart said
Denise Incandela will become
its head of fashion for U.S. ecommerce. Ms. Incandela was
most recently chief executive
of shoe company Aerosoles
and is the former president of
digital for Ralph Lauren and
chief marketing officer for
Saks Fifth Ave.
Amazon has made an aggressive push in recent years
to win over fashion brands. It
Please see ONLINE page B6
STREETWISE | By James Mackintosh
Candy Maker Ferrero
China Offers Lessons for Those Prone to Froth
Looks to Fatten Up
Ferrero International SA,
the Italian confectioner, just
bit off another piece of the
U.S. candy market, and it is already thinking about taking a
much bigger bite.
By Eric Sylvers in
Milan and Annie
Gasparro in Chicago
Earlier this week, Ferrero,
which makes Nutella and Tic
Tacs, said it had agreed to buy
Lemonheads and RedHots
maker Ferrara Candy Co.
from private-equity owner L
Catterton. It didn’t disclose
terms, but a person familiar
with the deal said Ferrero paid
about $1.3 billion.
Ferrero, the world’s fourthlargest confectioner by market
share, is also considering a bid
to buy Nestlé SA’s U.S. candy
business, according to people
familiar with the bidding.
The business, which Nestlé
put up for sale earlier this year,
includes well-known candy bar
brands such as Butterfinger
and Baby Ruth and had sales of
$922 million last year.
The unit has attracted a
number of bids, valuing it between $2 billion and $2.5 billion, according to a person familiar with the process. Apart
from Ferrero, Hershey Co.
and private-equity firms are
interested, according to people familiar with the matter.
Brynwood Partners is expected to be among those, according to one of these people. Brynwood has previously
bought other U.S. candy
brands from Nestlé, including
Turtles chocolates and Flips
chocolate-covered pretzels.
Mars Inc., Hershey, Mondelez International Inc. and
Nestlé are the top four confectioners in the U.S. by market
share, respectively, according
to Euromonitor. Ferrero is No.
6 in the U.S. Combined with
Please see CANDY page B2
Everyone’s
a Chinawatcher these
days, as redblooded capitalists try to
extract policy clues from
hourslong speeches by aged
Communist leaders.
A more fruitful pursuit for
investors might be to remind
themselves of the two big
lessons from recent history
in China’s markets: Being
early is as good as being
wrong, and buying into a
bubble doesn’t usually work
out well.
Investors who bought into
Chinese stocks when they
first started listing in Hong
Kong in the early 1990s can
congratulate themselves on
anticipating years of powerful economic growth. They
can also kick themselves if
they stuck with the trade, as
mainland companies listed in
Hong Kong, known as H-
Buoyant
Chinese stocks open to foreign
investors have long been
prone to bubbles, as Hang
Seng indexes show.
The dot-com bubble lasted
longer and the technologyoriented Nasdaq rose further.
The recent rise in
cryptocurrencies is far bigger
still, but hasn’t popped (yet).
China Enterprises
Index (H-shares)
600%
China-Affiliated
Corporations
Index
(red chips)
400
8,000
200
200
4,000
0
0
0
600%
400
12,000%
’10
1993
2000
Sources: Thomson Reuters Datastream (indexes); CoinMarketCap (cryptocurrencies)
shares, or those incorporated
outside the mainland but
listed in Hong Kong, called
red chips, were both lower a
decade later.
The best way to profit
Bitcoin
–4,000
–200
2000
Ethereum
Ripple
S&P 500
–200
1993
Nasdaq
Composite
from being early to China
was similar to the smart way
to trade new themes today:
Sell out as soon as everyone
else catches on to the idea.
In 1996-97, everything China-
2015
’16
’17
THE WALL STREET JOURNAL.
related soared, with red
chips peaking at 250% yearover-year gains around the
handover of Hong Kong to
China before collapsing as
Please see STREET page B2
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Friday, October 20, 2017
INDEX TO BUSINESSES
B
Banco de Sabadell....B12
Baupost Group..........B11
BHP Billiton................B6
Blackstone Group ..... B10
BluePay Holdings......B10
Box.............................B12
BP................................B6
Brevan Howard Asset
Management.............B1
Brynwood Partners.....B1
Glencore ...................... B6
Glenview Capital
Management.............B1
GMO ............................ B2
Grifols........................B12
H
Hershey.......................B1
Hilton Grand Vacations
...................................B10
Hilton Worldwide
Holdings..................B10
HSBC ......................... B10
I
Inmobiliaria Colonial.B12
J
C
JPMorgan Chase.........A2
Juicero.........................A9
CapitalG.......................B2
CardConnect..............B10
Chevron ....................... B6
CHX Holdings............B11
Kraft Heinz ............... B12
D
Deutsche Boerse.......B11
Dynamic Ledger
Solutions.................B10
E
eBay...........................B11
Elliott Management ... B6
K
L
Lagardere .................... B2
L Catterton..................B1
LCH.Clearnet Group..B11
London Stock Exchange
Group.......................B11
Lone Pine Capital ....... B1
Lord & Taylor .............. B1
Lyft..............................B1
F-G
M-N
Facebook......................B4
Ferrara Candy..............B1
Ferrero International..B1
First Data..................B10
Mars............................B1
Maverick Capital.........B1
Mondelez International
.....................................B1
National Beverage....B12
Nestle.....................B1,B3
Nissan Motor..............B6
R
Rio Tinto ..................... B6
Rosneft Oil..................B6
S
Samsung Electronics B11
SoftBank Group..........B1
Standard Chartered..B10
Stitch Fix.....................B4
T
TA Associates...........B10
Target..........................B3
Telefon L.M. Ericsson.B6
Tencent Holdings........A1
Tiger Global
Management.............B1
Tiger Management.....B1
Travelers............B10,B11
U
Uber Technologies ...... B1
Unilever................B3,B12
United Continental
Holdings..................B11
V
Verizon Communications
............................. B4,B11
Viking Global Investors
.....................................B1
W
Wal-Mart Stores.........B1
WeWork......................A1
INDEX TO PEOPLE
B
J
Bougie, Lisa ................ B4
Bradshaw, Myles......B12
Breitman, Arthur......B10
Breitman, Kathleen..B10
Brzeski, Carsten ....... B12
Janet Yellen..............B11
Jerome Powell..........B11
C
Caporella, Nick A......B12
Chenault, Ken ........... B12
Cornell, Brian..............B3
G
Gervers, Johann........B10
Grella, Mike.................B4
H
Harper, Christine ........ B2
Howard, Alan..............B1
K
Klarman, Seth...........B11
M
Mackenzie, Andrew....B6
MacKenzie, Ken..........B6
Malott, Sean...............B4
Mellon, Jim.................B2
Mills, Robin.................B6
Murray, Eric ................ B4
O
Osnos, Peter...............B2
R
Robbins, Larry.............B1
STREET
Continued from the prior page
the Asian Tiger bubble
popped.
Mature themes are more
about earnings prospects
and less about bubbles. But
investors thinking about
three big themes—bitcoin
and blockchain; artificial intelligence, or AI; and treatment of aging—would do
well to learn from the China
experience.
The three are on a spectrum of frothiness. At the
clearly bubbly end is anything cryptocurrency-linked,
in which the joyous echoes
of bubbles past are being
heard by millennials. As in
1999 with dot-coms, a mere
change of a company name
to something blockchain-related can boost the stock.
Twenty-somethings are
raising tens of millions of
dollars for mad-sounding
projects with flaky business
models, celebrities are backing startups, and regulators
are watching with horror but
doing little. Real-world projects wanting no-strings-at-
Mature themes are
more about earnings
prospects and less
about bubbles.
tached financing are piling
in—one even proposes a digital currency exchangeable
into sand—and due diligence
is rare. The bubble is well
advanced already.
Much less extreme is the
excitement about AI. Real
companies are making
money from real products
using machine-learning
tools, but much of the
money is being made by
software engineers able to
charge pretty much what
they want. Companies have
realized that they need to
know—and talk about—machine learning, but valuations of the stocks involved
are merely high, not wildly
implausible.
At the far opposite end is
aging. This isn’t exactly
novel, with the search for
immortality dating back
thousands of years. But companies are starting to get serious about extending life,
with Google, now called Alphabet, starting research in
2013. With the science at an
early stage, many of the ventures being set up will fail,
and most of the biotechnology companies involved are
still private anyway.
Jim Mellon, a biotech investor and author of “Juve-
Robertson, Julian........B1
Rolet, Xavier.............B11
S
Schnitzer, Alan ......... B10
Schwarzman, Stephen
...................................B10
Singer, Paul.................B6
Sullivan, Holly.............B4
T
Taffler, Richard...........B2
Taylor, John...............B11
V
Paul Volcker Turns to His Memoir
BY JEFFREY A. TRACHTENBERG
Former Federal Reserve
Chairman Paul Volcker is at
work on a memoir he says will
address the larger themes that
have dominated his life of
public service.
“There are a few things I’d
like to talk about,” said Mr.
Volcker, 90 years old. “When I
got out of college after World
War II, we were the kings of
the world. The American century has deteriorated a bit. It’s
been an interesting arc of history.”
Mr. Volcker will be published by PublicAffairs, an imprint owned by Lagardere
SCA’s Hachette Book Group.
Asked about his work habits,
Mr. Volcker described himself
as “the world’s greatest procrastinator.”
No publication date has yet
been set.
Mr. Volcker, who served as
chairman of the Federal Reserve from 1979 to 1987, said
he has long focused on the ineffectiveness of government,
which he said “has gotten
worse instead of better. Alexander Hamilton is getting a
pretty good run right now. He
said for government to be effective, it must have effective
management. He was an early
town crier in that respect.”
Peter Osnos, the founder of
PublicAffairs, said Mr. Volcker
had called him earlier this
year and asked if he might be
interested in such a book. “I
was interested,” said Mr. Os-
Paul Volcker in 1980. ‘There are a few things I’d like to talk about,’ the former Fed chief says.
nos. “Very few people go
through public life and come
out intact. He’s not young, but
he’s sharp as a tack.”
A spokeswoman for PublicAffairs declined to reveal the
book’s advance.
Mr. Volcker, who is writing
the book in collaboration with
Christine Harper, an executive
editor at Bloomberg News,
suggested his memoir may not
follow the standard, chronological pacing of other memoirs. Although he said he is
likely to provide some discussion of his early years and
how they affected his later
thinking, he noted much of
that material has already been
covered in several biographies.
Additional themes he intends to address are the importance of central banking,
maintaining international relations and cooperation in the
economic arena, and the value
of price stability. During his
tenure as Fed chairman, Mr.
Volcker addressed the inflationary issues that had an impact on that era.
“I also did a few things after I retired from the Federal
Reserve and have to cover that
as well,” added Mr. Volcker,
who served as chairman of
President Barack
Obama’s
Economic Recovery Advisory
Board from 2009 to 2011. The
so-called Volcker rule, part of
the 2010 Dodd-Frank act, was
intended to prevent banks
from engaging in risky investment strategies.
Asked whether there would
much in the way of juicy gossip in his memoir, Mr. Volcker
replied, “There’s no sex in the
Federal Reserve. Or rather, no
illicit sex.”
Vetto, Matt...............B12
Volcker, Paul...............B2
W
Warren, Elizabeth.....B11
Warsh, Kevin ............ B11
nescence,” says it is probably
too early for the general investor to get into the small
stocks he thinks might make
it big, as their products may
well fail. “But I have no
doubt that in three or four
years’ time there will be a
speculative bubble in this
area,” he says.
The problem for investors
is timing such bubbles.
When bubbles pop, losses
can be very large and very
rapid. A year after peaking
in 1997, Chinese red chips
were down 85%; the Hang
Seng China Enterprises Index of H-shares was lower in
January this year than at its
peak in 1993.
But working out when a
bubble will pop is difficult,
to put it mildly. Richard
Taffler, a finance professor
at Warwick Business School
in the U.K., says bubbles tap
into “unconscious fantasies,”
so gauging investor emotion
is key, albeit hard. “All one
can do is measure the underlying sentiment and the extent to which reality intrudes,” he says.
Part of the problem is
that each bubble is different.
Work by Boston fund manager GMO LLC a few years
ago found bubbles varied
widely both in size and duration. After meeting GMO’s
statistical bubble test of two
standard deviations above
trend, the time required to
reach the peak was almost
four years for large Japanese
companies up to 1989, but
less than six months for the
South Sea Bubble of 1720 or
the first emerging-market
bubble, in 1825.
GMO found that bubbles
in emerging-market stocks,
on average, pop more quickly
and don’t get as big as in developed countries, and that
the biggest bubbles occur in
commodities.
Bitcoin has already
jumped 10-fold in just over a
year, and other cryptocurrencies have had even more
extreme moves. True believers argue bitcoin is different,
and its price rise is justified
because it is the future of
money. The history of bubbles suggests that’s unlikely
but not impossible: GMO
found that one in seven price
moves that look like a bubble turns out to be a paradigm shift.
Investors trying to spot
the next big theme need to
beware of thinking they are
early when they are late, as
they might be with bitcoin.
They also need to be ready
to sell if it looks like a bubble is developing and to have
the strength not to be
sucked back in if the bubble
keeps going for a long time.
Both are hard to do, but no
one ever said investing was
easy.
ANTHONY KWAN/BLOOMBERG NEWS
A
BUSINESS & FINANCE
CHICK HARRITY/ASSOCIATED PRESS
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.
Alphabet ................ B1,B4
Amazon.com ............... B4
American Express.....B12
Apple....................B4,B11
THE WALL STREET JOURNAL.
* *****
Ferrero, the maker of Nutella, is looking to double down on the U.S. at the same time sugar has come under siege by consumers.
CANDY
Continued from the prior page
Ferrara and Nestlé’s business,
it would move up to No. 3,
though still far behind Mars
and Hershey.
Mondelez sought to boost
its own U.S. standing when it
unsuccessfully bid for Hershey
last year. It is unclear if Mondelez or Mars is interested in
the Nestlé brands.
On Thursday, officials at
Nestlé said it expected the
sale of the unit, which went on
the block in June, to be
wrapped up by the end of the
year.
A move on Nestlé’s U.S.
business would be the biggest
in a series of much smaller acquisitions by Ferrero, a private, family-controlled firm
with about $12 billion in revenue last year. Earlier this year,
it bought Fannie May Confections Brands. Two years ago, it
snapped up U.K. chocolate
maker Thornton PLC.
LYFT
Continued from the prior page
pealing. It is expensive for
ride-hailing firms to open in
new cities because of marketing expenses like incentives
for new drivers and passengers.
As Uber has fought back the
bad-press cycle, Lyft has
stayed largely above the fray.
Over the summer, it added former Obama adviser Valerie
Jarrett to its board and as
part of the funding round is
adding David Lawee—a partner at Alphabet’s CapitalG—as
its 10th director.
Lyft has attempted to capitalize on Uber’s reputational
problems with thinly veiled
Founded in 1946 in the
small northern Italian town of
Alba, Ferrero has followed a
dual-track strategy: It has aggressively pursued acquisitions, while also trying to
stoke organic growth with new
products.
Last month, the company
introduced in Italy a cookie
version of its Kinder Surprise
egg, a thin chocolate egg with
a small plastic toy inside. It is
sold across Europe, but not in
the U.S. Earlier this year, it began testing a Tic Tac chewing
gum in its home market. If
successful, Ferrero will roll
out the two products in other
countries, including the U.S.,
according to a person familiar
with the plans.
Ferrero is looking to double
down on the U.S. candy industry at a time when sugar has
come under siege by consumers, who are opting for snacks
they view as healthier like
fruit-and-nut bars.
Nestlé and Hershey have
touted technology they say
will allow them to reduce
sugar in chocolate by up to
40% by altering the structure
of the sugar particles to taste
sweeter.
Food and beverage companies, even in indulgent categories, have “no choice but to respond to the growing consumer
concerns of the consumption of
added sugar,” said Rabobank
analyst Nicholas Fereday.
Ferrara, the U.S. company,
traces its roots back to 1908,
when it opened as a pastry
shop in Chicago’s Little Italy
neighborhood. It went on to
expand into hard candies, including candy-coated almonds,
Lemonheads, RedHots and
Atomic FireBalls. In 2012, after
the founder’s son died, Ferrara
merged with Farley’s &
Sathers Candy Co., owned by L
Catterton.
L Catterton expanded the
company’s profitability and
revenue by investing in new
manufacturing equipment, advertising and new products.
Executives previously said
they planned to expand annual sales to $2 billion by
2020 from around $1 billion
currently.
Last year, L Catterton considered taking Ferrara public
and shopped it around to potential buyers, but it didn’t
reach a deal, according to a
person familiar with the
company.
—Ben Dummett
contributed to this article.
television ads that portray a
scheming competitor that
would use spike strips or lasers to take Lyft down. More
recently, it enlisted actor Jeff
Bridges imploring viewers to
choose their ride “with the
right people, doing things for
the right reasons.”
The companies are attempting to take the lead in selfdriving vehicle technology as
well. Lyft has joined with companies including General Motors Co., which is an investor,
Ford Motor Co. and startup
NuTonomy, among others, as
well as opening its own Silicon
Valley development center.
Uber, meanwhile, has mostly
eschewed partnerships in favor of working on its own autonomous cars, including passenger tests in Pittsburgh,
Tempe, Ariz., and briefly in
San Francisco.
With its investment, Alphabet pulls closer to Lyft and
gets more say in the ride-hailing company’s direction. That
could be useful as Alphabet’s
Waymo unit plans its own
ride-hailing service with selfdriving cars. Waymo sued
Uber in February for allegedly
stealing its driverless-car
trade secrets to jump-start its
own program. Uber has disputed the allegations.
While Waymo is considered
by many to have the world’s
most advanced self-driving
technology, it knows little
about operating a taxi business. Indeed, Waymo and Lyft
said in May that they are collaborating on self-driving
technology, including tests of
a self-driving taxi service, a
person familiar with the deal
said at the time.
A CapitalG spokesman said
the Lyft investment is about
making a profit for Alphabet.
“It’s a belief in Lyft, their business model, their future
growth and not strategic positioning,” the spokesman said.
CapitalG invests in latestage companies such as Snap
Inc. and Airbnb Inc., unlike Alphabet’s other investment
firm GV, which largely funds
younger firms. Alphabet already is an investor in Uber.
The size of CapitalG’s investment in Lyft, and how
many other investors are in
the round, isn’t clear. CapitalG’s investments typically
range from $50 million to
$100 million.
Trick or Treat
Ferrero has boosted its U.S.
presence, but is still far behind
Mars and Hershey. Market share:
Mars
25.0%
Hershey
22.6
Mondelez
6.1
Nestlé
5.2
Lindt
5.2
Ferrero
2.5
Ferrara
2.3
Source: Euromonitor International
THE WALL STREET JOURNAL.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | B3
BUSINESS NEWS
Unilever, Nestlé Test Investors’ Patience
Weak sales results
come amid calls for
turnarounds at the
consumer-goods firms
BY SAABIRA CHAUDHURI
AND BRIAN BLACKSTONE
Two of the world’s biggest
consumer-goods companies—
both caught in investors’
crosshairs—reported another
round of weak sales, ratcheting up pressure to accelerate
promised turnarounds.
Unilever PLC missed analysts’ sales forecasts by a wide
margin on Thursday, reporting
growth in the third quarter of
2.6% compared with a year
earlier. Analysts had expected
the maker of Dove soap and
Hellmann’s mayonnaise to
post sales gains of 3.9%, stripping out things such as acquisitions
and
divestitures.
Shares fell 5.5% in London.
Nestlé SA, meanwhile, said
its sales weakened in the first
nine months of the year, and it
doesn’t expect an improvement in the final quarter. The
Swiss consumer company reported sales growth of 2.6%
for the first nine months. It
said it expects to post 2.6%
growth for the full year, too,
compared with 3.2% last year.
The owner of Kit Kat chocolate and Nescafé coffee also
said it would take new restructuring charges of 400
million to 500 million Swiss
francs ($407 million to $509
million) this year, as it accelerates efforts to cut costs. The
charge is expected to eat into
full-year profit margins. Nestlé
shares fell 1% in Zurich.
For both companies, the
clock is ticking. Investors
across the sector have called
for significant changes at
many of the industry’s largest
competitors. The revolt is
playing out amid a downturn
blamed on fast-changing buying habits by consumers.
Earlier this year, Unilever
rejected a $143 billion bid by
Kraft Heinz Co. It acknowledged in the aftermath that it
needs to do more to keep
shareholders happy—and to
keep itself off the target list of
other potential acquirers.
It promised to boost returns through share buybacks,
higher profit margins and a
fresh willingness to leverage
Slowing Down
Consumer-goods giants are suffering slowdowns across a broad
range of categories. Global sales growth, change from a year earlier:
Changing tastes
Nestle's organic growth,
change from previous period
2.5%
Beauty/
Personal care
s1.7%
2.0
1.5
Home care
s1.3%
1.0
Packaged
food
s1.1%
0.5
0
2012
’13
’14
’15
the balance sheet. It also put
its margarine business up for
sale. Under Chief Executive
Paul Polman, Unilever has already been cutting costs.
Thursday’s disappointing
sales set up a fourth-quarter
sprint for Unilever to make its
full-year forecast of 3% to 5%
growth. RBC analyst James
Edwardes Jones said that target would be “a stretch,” given
Unilever’s performance so far
this year. He also said the
company’s ability to achieve a
margin target of 20% by
’16
THE WALL STREET JOURNAL.
Sources: Morgan Stanley; Euromonitor
2020—one of the things it
promised investors after the
Kraft Heinz bid—will be “jeopardized” if the company can’t
step up sales growth.
Unilever relied heavily on
price increases for third-quarter growth, instead of volume
growth, a red flag for analysts.
Some investors showed signs
of impatience. Simon Gergel,
chief investment officer for
U.K. equities at Allianz Global
Investors, a Unilever shareholder, said that with the weak
sales-volume growth “there
could be questions raised
about the sustainability” of
Mr. Polman’s strategy prioritizing cost-cutting and profitmargin increases.
Unilever’s two biggest competitors, Procter & Gamble Co.
and Nestlé, are already under
pressure from activist investors. Nelson Peltz narrowly
lost a proxy vote at P&G, and
has called for deep structural
changes at the U.S. company.
So far, Mr. Polman has avoided
that sort of public pressure.
He has also resisted some of
the bigger structural changes
that some critics have said are
necessary—such as splitting
Unilever’s food holdings and
its consumer-goods brands.
Crosstown rival Reckitt
Benckiser Group PLC, this
week said it would split its
own businesses—creating a
consumer-health group and a
home-and-hygiene group—to
focus management on boosting growth at both units.
Nestlé, meanwhile, is busy
trying to keep its own activist
investor at bay. Dan Loeb’s
Third Point is now one of its
biggest shareholders. Nestlé
CEO Mark Schneider has done
a number of things Mr. Loeb
has asked for: He set a profitmargin target, launched share
buybacks and has used deal
making to diversify Nestlé’s
portfolio—away from slowergrowing packaged snacks and
toward smaller, faster-growing
brands. Mr. Schneider also put
Nestlé’s U.S. chocolate business up for sale.
If Nestlé can’t show signs of
a turnaround, Mr. Loeb—or
others—might increase pressure for bigger moves. A representative for Mr. Loeb declined to comment Thursday.
BY KHADEEJA SAFDAR
Target Corp. said it would
expand plans to remodel its
existing supercenters and
open smaller stores in cities as
the retailer seeks to win back
shoppers in the competitive
retail environment.
At a media event Thursday
in New York City, Target executives said they now plan to
remodel more than 1,000 of
the company’s 1,800 existing
stores by the end of 2020.
Earlier this year, Target said it
planned to remodel 600 stores
over three years, part of a $7
billion investment, including
lowering prices and investing
in e-commerce.
Chief Executive Brian Cor-
nell said he is making “big
commitments” to improving
stores and expanding digital
capabilities.
“We’re remodeling and
across the street someone is
closing the door,” he said.
Mr. Cornell declined to say
whether the new pace of remodels would increase Target’s spending plan, saying he
would provide an update at
the next meeting with financial analysts. Sales have increased 2% to 4% at recently
renovated stores, he said.
The company has remodeled 110 stores so far in 2017.
It is opening 32 new stores in
2017 and 35 next year. Most of
those new locations are
smaller formats that the com-
pany is opening in urban areas
and college towns. It is opening 11 such stores this week,
bringing the total number of
smaller stores to 55 so far.
Mr. Cornell is trying to turn
around the retail chain’s fortunes after it reported weak
holiday sales last year and was
forced to lower its profit and
sales goals for the current fiscal year. Some of his moves,
including lowering prices and
remodeling stores, helped the
company report a sales increase in the third quarter.
The smaller stores will help
Target as it seeks to balance
shifting consumer habits, with
more people shopping online.
Mr. Cornell said such locations
have been twice as productive
as the company’s traditional
stores and have drawn new
customers.
They typically have less
than 50,000 square feet compared with the average Target
store of 145,000 square feet.
To maximize shelf space, Target stocks them with smaller
package sizes and fewer
brands for many of the same
items offered in bulk at its
larger stores.
Target is also customizing
the assortment in the stores to
cater to local tastes—a new location in New York City’s Herald Square, for example, sells
city-themed clothes to appeal
to tourists. It is opening
across the street from Macy’s
Inc.’s flagship store.
BRANDON WADE/ASSOCIATED PRESS
Target to Step Up Renovations, Add Smaller Stores
The retailer plans to remodel over 1,000 stores through 2020.
Important Safety Recall Expansion Notice
BSH Home Appliances Corporation, in cooperation with the CPSC and Health Canada, has voluntarily agreed to expand its 2015 safety
®
®
®
®
recall to replace the power cords on certain Bosch , Thermador , Gaggenau , and Jenn-Air dishwashers manufactured between September
2012 through January 2015 (see specific brand dates below). The dishwasher power cord can overheat, posing a potential fire hazard.
Stop using your dishwasher and call the Safety Recall Hotline at 888.965.5813.
*
*
Model Number
Model Number
Model Number
Serial Number beginning with FD
Serial Number beginning with FD
Serial Number beginning with FD
Bosch:
SHE33T* SHE53T* SHE65T* SHE68T*
SHE7PT* SHE8PT* SHP53T* SHP65T* SHP7PT*
SHV53T* SHV68T* SHV7PT* SHV8PT* SHX53T*
SHX65T* SHX68T* SHX7PT* SHX8PT* SGE53U**
SGE63E** SGE68U** SGV63E** SGX68U** SHE9PT**
SHV9PT** SHX5ER** SHX7ER** SHX9PT** SPE5ES**
SPE53U** SPE68U** SPV5ES** SPX5ES**
SPX68U**
______________________________________________
*Serial number range: *FD9209-FD9403 **FD9401-FD9501
______________________________________________
Models affected were manufactured from
September 2012 through January 2015
Thermador: DWHD44* DWHD64** DWHD65**
_______________________________________
*Serial number range: FD9209 - FD9403
**Serial number range: FD9401 - FD9501
___________________________________
Models affected were manufactured from
September 2012 through January 2015
Gaggenau: DF2417 DF2607 DF2617
____________________________________
Serial number range: FD9401 - FD9501
____________________________________
Models affected were manufactured from
January 2014 through January 2015
Model Number
Serial Number beginning with FD
Jenn-Air: JDB9600CWS JDB9600CWP
JDB9600CWX
_________________________________
Serial number range: FD9404-FD9501
_________________________________
Models affected were manufactured from
April 2014 through January 2015
888.965.5813
Please call the Safety Recall Hotline from 8 a.m. to 8 p.m. EST Monday through Sunday with your
model and serial numbers.
Or visit the brand website to see if your model is affected and to register.
www.bosch-home.com/us
www.thermador.com
www.gaggenau.com/us
www.jennair.com
B4 | Friday, October 20, 2017
THE WALL STREET JOURNAL.
* ***
TECHNOLOGY
BY LUKAS I. ALPERT
Facebook Inc. will begin
testing a feature in the coming
weeks that will allow news
publishers to sign up subscribers through the social-media
giant’s Instant Articles program.
The subscriptions program
will begin with a group of select publishers on Android devices only, as a disagreement
between Apple Inc. and Facebook over whether Apple will
get a cut of the subscription
revenue continues to be negotiated, a person familiar with
the matter said.
Facebook wants to let publishers keep 100% of all subscription revenue brought in
through the program. But Apple is insisting that it collect
30% of all subscription sales,
in keeping with its requirement that it get a cut of revenue generated from apps in its
App Store, the person said.
Representatives for Apple
didn’t immediately respond to
requests for comment.
Publishers have long been
wary of Facebook’s outsize
role in news dissemination
and its commanding presence
in the digital advertising market. Alphabet Inc.’s Google
and Facebook are expected to
receive 63% of U.S. digital ad
spending this year, according
to eMarketer—which has made
digital subscription growth a
priority for many newspapers.
Encouraging users to pay
for news is a significant step
for Facebook, and the feature
has long been requested by
publishers.
The arrangement will start
by testing metered paywalls
that will initially allow 10 free
articles from a publisher per
month, as well as “freemium”
models in which publishers
can select which articles are
paywall protected. Different
metered models will be tested
as the program progresses, the
company said.
The first test group will include the Washington Post;
the Economist; Axel Springer
SE’s Bild and Spiegel; Tronc
Inc.’s Los Angeles Times, San
Diego Union-Tribune and Baltimore Sun; and the Telegraph
in the U.K.
Several big publishers with
robust digital subscription
businesses, such as The Wall
Street Journal, the New York
Times and the Financial
Times, aren’t participating in
the initial test program.
A person familiar with the
matter said the Journal had
opted out at this phase because the 10 free-article structure conflicts with the paper’s
tighter paywall model on its
own site.
A spokeswoman for the
New York Times said the paper had chosen not to participate in the program at this
time but discussions with
Facebook were continuing.
A representative for the Financial Times didn’t immediately respond to messages
seeking comment.
Amazon Homes In on Tax Breaks
Cities and states woo
the firm as its request
for proposals to lure
HQ2 comes to a close
Amazon.com Inc. is no novice when it comes to getting
good deals.
As the Seattle-based company on Thursday closed the
request for proposals for its
second corporate home, its inhouse economic-development
team shows how vital tax-incentive deals have become to
its business model and gives a
window into why the company
pitted cities against each
other to win the biggest sub-
BEIJING—Apple Inc. has
another headache in China:
this time with its latest watch.
For the first time, the Apple
Watch can have an independent cellular connection, allowing people to use it to
make voice calls and send and
receive text and data even if
the watch isn’t wirelessly connected to an iPhone.
But in China, the feature
was cut off for new subscribers, without explanation, after
a brief availability with one
telecommunications company.
Industry analysts said the
suspension likely stemmed
specialists who come from different parts of the economicdevelopment world. The group
finds sites for new projects
and negotiates tax breaks, acting as liaisons with local and
state governments.
Mike Grella, who worked at
consulting firm PwC before
joining the web giant, started
at Amazon as director of economic development in 2012.
He was joined by Eric Murray,
who had worked in-house on
real estate and economic development at Lockheed Martin
Corp., in 2014, and Holly Sullivan, who worked on economic
development for local governments in Maryland and Tennessee, in 2016.
from Chinese government security concerns tied to tracking users of the device, which
uses different technology than
standard mobile phones.
China strictly regulates mobile phones, and all three major telecom-service providers
are state-owned companies. To
get a SIM—subscriber identity
module—card to operate the
phone, users must register under their real names with a
network carrier.
The latest Apple Watch
poses a challenge to the existing user identification system,
analysts said. The watch con-
tains a new and tiny version of
the SIM card, called embedded
SIM, or eSIM. The eSIM is embedded in the watch by Apple,
not by carriers.
The benefit of a device carrying an eSIM is that, with
software, users can choose a
telecom operator and a communications plan. But in
China, that new system raises
the question of how carriers
and regulators can track the
device user’s identity. “The
eSIM [system] isn’t mature
enough yet in China,” one analyst said. “The government
still needs to figure out how
they can control the eSIM.”
When the Apple Watch
went on sale Sept. 22, the cellular service was available exclusively to qualified China
Unicom customers. But after
Sept. 28, new cellular subscriptions were cut off. Those
who had previously registered
are so far unaffected.
In a notice on its website,
China Unicom said the cellular
feature had been offered on a
trial basis. It gave no information on when it might resume.
Apple referred queries to
China Unicom. “We were informed by China Unicom that
the new cellular feature on the
Apple Watch Series 3 has been
suspended,” Apple said in a
written statement.
China’s Ministry of Industry
and Information Technology
didn’t respond to requests for
comment.
China Unicom and the two
other state-owned telecom
companies didn’t respond to
requests for comment.
Ministry officials are likely
studying how to resolve the issue before allowing any broad
cellular access to the Apple
Watch, analysts said.
—Yang Jie and Yoko Kubota
Verizon Data Shift Adds Wireless Subscribers
BY AUSTEN HUFFORD
AND RYAN KNUTSON
Boring is good when you’re
the largest wireless carrier in
the country.
Buoyed by soft promotions
around the latest iPhone, Verizon
Communications Inc. boosted
revenue and its subscriber rolls
in the third quarter, a sign the
To advertise: 800-366-3975 or WSJ.com/classifieds
PUBLIC NOTICES
LEGAL
NOTICES
ADVERTISE TODAY
carrier’s return to unlimited data
plans earlier this year has
stanched customer defections.
Verizon added 603,000
monthly postpaid connections
in the quarter, nearly double
what Wall Street expected. The
company had 115.3 million total wireless retail connections,
up from 113.7 million the same
quarter last year and 114.5 million in the second quarter.
After losing customers during the first three months of
the year, Verizon in February
brought back unlimited wireless plans for the first time
since 2011. The unlimited
plans allow customers pay a
flat rate for nearly unlimited
monthly internet usage on
their smartphones.
The move exacerbated revenue declines in Verizon’s wireless unit, as many customers
on older, more expensive plans
quickly switched over to the
cheaper unlimited option. That
trend is slowing as customers
on plans with data caps are
now starting to pay up for unlimited data, the company
said. While revenue from the
wireless business, its largest
unit, fell 2.4% to $21.58 billion,
the company said the declines
were bottoming out.
“We knew initially we
would see optimizers who had
the opportunity to move to unlimited and save money,” said
Verizon finance chief Matt Ellis on a call Thursday with analysts. Wireless-service revenue increased sequentially for
the first time in three years.
Verizon’s subscriber metrics
also benefited from weaker
promotions around Apple
Inc.’s latest iPhone. But heavier
competition could arrive during the last three months of
the year, analysts warned, as
the flagship iPhone X goes on
sale in November, just in time
for the holiday season.
Verizon said wearable devices, such as watches, made
up a significant portion of its
238,000 connected device ad-
Core Growth
Verizon’s net new wireless
subscribers*
2.0 million
1.5
+603,000
1.0
0.5
0
–0.5
2014
’15
’16
’17
Note: *Postpaid
Source: the company
THE WALL STREET JOURNAL.
ditions in the quarter—an indication that Apple’s new LTE
connected smartwatch is off to
a decent start.
Revenue at the wireline
segment that includes its Fios
internet and television service
increased 1.1% to $7.66 billion,
boosted by its acquisition of
XO Communications, which
owned fiber-optic networks.
Verizon cited consumer
shifts to over-the-top video
options and away from traditional television as the reason
for losing 18,000 Fios video
customers in the quarter. That
is more than the loss of 15,000
in the second quarter and
13,000 in the first quarter. It
gained 36,000 in the third
quarter last year. It ended the
quarter with 4.6 million Fios
video customers.
In all, Verizon profit was
the same as the third quarter
last year, with net income of
$3.62 billion, or 89 cents a
share. Revenue rose 2.5% to
$31.72 billion. Still, excluding
acquisitions and divestitures,
adjusted revenue fell 2.3%.
Verizon expects capital
spending for 2017 to be at the
lower end of its $16.8 billion
to $17.5 billion range.
(800) 366-3975
sales.legalnotices
@wsj.com
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information visit
wsj.com/classifieds
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corporate jobs.
While Amazon is considering many factors such as the
labor pool, cultural fit and access to airports and major
highways, its emphasis on taking advantage of incentives is
part of its culture of frugality.
Amazon’s approach differs
from most other companies,
which often rely on outside
consulting firms to scout locations and negotiate tax-incentive deals with state and local
governments. Instead, Amazon
has brought those services inhouse and made them the responsibility of its economicdevelopment team.
Amazon’s team is led by
Apple Watch Connection Hits Snag in China
Legal Notices
"8
dies since the team’s founding
five years ago, according to
data collected by Good Jobs
First, a group that advocates
against tax incentives.
The company said last
month it plans to invest $5
billion in a second North
American headquarters over
nearly two decades, some of
which it could recoup through
hefty tax breaks.
Promises of incentives for
HQ2, as Amazon calls its new
headquarters, are already
coming in. New Jersey Gov.
Chris Christie on Monday announced the state and the city
of Newark will offer a potential $7 billion in tax incentives
over 10 years, tied to Ama-
An Apple Watch ad in Hong Kong in 2015. A cellular-connection feature in the latest Apple Watch has been suspended for new China Unicom subscribers.
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Starting in 2013, for instance, the team helped Central Florida officials advocate
for allowing Amazon to build
fulfillment centers in Davenport and Lakeland.
Sean Malott, president of
the Central Florida Development Council, who worked with
Amazon, says together the centers employ 1,000 workers. The
company received $5.3 million
in tax incentives in return, according to the state’s economic-development group. “In
our case, they’re taking agricultural property that had a very
small taxable base,” he said.
Amazon has been promised
roughly $1 billion in tax subsi-
BOBBY YIP/REUTERS
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To Try Plan
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Publishers
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Stitch Fix IPO Filing Reveals $1 Billion in Sales
BY MARIA ARMENTAL
AND MAUREEN FARRELL
Personal-shopping service
Stitch Fix has filed for an initial public offering, revealing
that the six-year-old startup’s
annual sales have zoomed to
nearly $1 billion at the same
time traditional clothing retailers are struggling.
The company, which selects
and ships outfits to customers,
said revenue surged to $977
million in the year ended July
29, from $73 million in 2014.
Unlike most venture-backed
startups, Stitch Fix has been
profitable in recent years,
though it swung to a $594,000
loss in the most recent year,
the filing shows.
Some of that profitability
comes from Stitch Fix’s limited
marketing expenses, and the
company said in its prospectus
that it plans to increase marketing expenses.
Its premise is simple: Customers fill out a survey used to
select five items of clothing,
shoes or accessories. Items are
selected by a personal stylist
and delivered for customers to
try on at home. They pay for
what they keep and return the
remaining merchandise in a
prepaid envelope. For each box,
the company charges a $20 styling fee, which can be applied as
a credit toward purchases.
As of July 29, the company
reported more than two million
active clients, or those who
made at least one purchase
over the previous 12 months,
with a repeat rate of 86%, up
from 83% a year earlier.
Stitch Fix is pitching itself as
more than just a traditional
clothing retailer. The company
says its 3,400 stylists rely on the
survey customers fill out, combining data and their own judgment, to recommend outfits.
Stitch Fix is “an entirely different experience than going on
Amazon and searching for your
own thing,” said Lisa Bougie,
the head of Stitch Fix’s women’s
business, in an April interview
with The Wall Street Journal.
—Khadeeja Safdar
contributed to this article.
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* ***
THE WALL STREET JOURNAL.
BUSINESS NEWS
FDA Mixed on
Tobacco Flavors
Smoke rises from a burning house during clashes between members of Iraqi and Kurdish groups around the city of Kirkuk Tuesday.
Kurd Clashes Delay Chevron
Fighting leads oil giant
to suspend operations
in Iraqi Kurdistan, giving
rival BP an opportunity
BY BENOIT FAUCON
Iraq’s backlash against
Kurdish independence is reordering the region’s booming
energy business, forcing Chevron Corp. to suspend operations in Iraqi Kurdistan, opening potential opportunities for
BP PLC and unsettling Russian
companies’ bet on the Kurds.
Chevron said Thursday that
it was temporarily halting
drilling in the region. The decision was taken because of
fighting in nearby Kirkuk and
the difficulty the company has
had refreshing work crews because of a flight ban to Iraqi
Kurdistan imposed by Iran,
Turkey and the Iraqi central
government in Baghdad, a person familiar with the matter
said.
“We continue to monitor
the situation in the Kurdistan
Region of Iraq,” the Chevron
spokeswoman said. “We look
forward to resuming our operations as soon as conditions
permit.”
Chevron’s move is the latest
sign of turmoil for a Kurdish
BP’s Chairman
Plans to Retire
LONDON—BP PLC said the
company’s longstanding chairman Carl-Henric Svanberg is
set to retire, launching a
search for his successor.
The Swedish businessman
became chairman in January
2010, just months before a fatal blowout in the Gulf of Mexico propelled the company
into the worst corporate crisis
its history.
Mr. Svanberg became an
important public face for the
company and played a crucial
role in seeing it through the aftermath.
“BP’s comeback would not
have been possible without the
strong leadership and stead-
fast support of Carl-Henric,”
CEO Bob Dudley said in the
company’s retirement announcement.
Mr. Svanberg will be leaving
the company as it returns to
growth after years of retrenchment following the Gulf of
Mexico disaster and a dramatic
slump in oil prices since 2014.
“Today I can say with confidence that BP is back and
ready for the future,” he said in
the retirement notice.
Mr. Svanberg joined BP after serving as CEO of telecom
equipment maker Ericsson AB.
He still chairs the board of
Volvo AB.
Mr. Svanberg will chair the
company’s annual general
meeting in May and will remain in position until a successor is found, BP said.
—Sarah Kent
energy industry fueled by
Western oil companies since
Monday when the Iraqi military seized Kirkuk, an oil-rich
region that accounts for almost half of the Kurdistan Regional Government’s crude
output. Kirkuk isn’t part of the
government’s recognized area
but it had been held by the
Kurds since Islamic State’s advance into Iraq in 2014.
The region has been hailed
as one of the oil industry’s last
great frontiers, though there is
dispute about the size of its
reserves. The region has
carved out a significant
amount of autonomy since
Saddam Hussein’s ouster in
the second Iraq war, with its
government striking deals
Chevron, Exxon Mobil Corp.
and Russia’s state oil firm,
OAO Rosneft, over the objections of Baghdad.
Since taking over Kirkuk,
Iraq has tried to reassert control over neighboring Kurdistan, threatening foreign oil
companies with legal action if
they conduct business with
the government there.
Chevron’s bet on Kurdistan
was relatively small, focusing
on two oil blocks that had yet
to provide commercially viable
oil. Those aren’t near clashes
in Kirkuk, but the loss of that
region to Baghdad could crimp
Kurdistan’s ability to pay
Chevron were it to find oil.
“With the loss of the Kirkuk
fields, KRG will not be able to
cover its budget,” said Robin
Mills, head of Dubai-based
consultancy Qamar Energy.
Baghdad has called on BP to
help the country double production in Kirkuk to 1 million
barrels a day.
BP says it won’t go until regional security is restored, but
Kirkuk would be a prize for a
company that already operates
Iraq’s largest oil field. BP had
worked in Kirkuk before fleeing in 2014 along with Iraqi
authorities as Islamic State
marched into the region.
—Isabel Coles in Baghdad,
Sarah Kent in London and
Nathan Hodge in Moscow
contributed to this article.
The use of flavors in different tobacco products has the
potential to do “both harm and
good,” the Food and Drug Administration’s
chief
said
Thursday, explaining that the
agency would weigh both possibilities as it considers banning flavors such as menthol
in cigarettes and e-cigarettes.
The FDA’s review of flavors
is part of a sweeping overhaul
of tobacco regulation in which
the agency hopes to mandate a
reduction of nicotine in cigarettes to such a low level that
they are no longer addictive,
and at the same time encourage smokers to switch to lessharmful products such as ecigarettes.
The FDA concluded in 2013
that menthol cigarettes were
harder to quit and likely posed
a greater health risk than regular cigarettes.
The agency since then has
been considering regulatory
action to restrict menthol
sales but has remained quiet
on the issue for the past few
years. The tobacco industry
has rejected the FDA’s findings.
“On this issue, we see two
sides—on the one hand, we
need to know the role that flavors, including menthol, play
in attracting youth to initiate
tobacco use,” FDA Commissioner Scott Gottlieb said
Thursday in a speech at Johns
Hopkins Bloomberg School of
Public Health. “But on the
other hand, we also need to
know whether…certain flavors
may help adult cigarette smokers switch to potentially less
harmful forms of nicotine delivery” such as e-cigarettes.
The agency will issue regulations based on flavors’ “net
impact to public health,” he
said.
Dr. Gottlieb’s surprise July
28 announcement on the tobacco-policy shift sent shares
of Marlboro maker Altria
Group Inc. and other tobacco
stocks plummeting.
Newport maker British
American Tobacco PLC would
be most affected by a menthol
ban: Menthols represent 55%
of the company’s U.S. cigarette
volume.
Tobacco executives have applauded the FDA’s pledge to
encourage the launch of lessharmful products—an area in
which they have invested aggressively. They have also
noted that any new regulations
must be backed up by scientific research and must take
into consideration potential
consequences such as a black
market.
JUSTIN SULLIVAN/GETTY IMAGES
BAREQ AL-SAMARRAI/EPA/SHUTTERSTOCK
BY JENNIFER MALONEY
The FDA’s review is part of an overhaul of tobacco regulations.
BHP CEO Seen as Under Pressure From Activist Elliott
The chief executive of the
world’s most valuable mining
company, BHP Billiton, faces a
By Scott Patterson in
London and
And Robb M. Stewart
in Melbourne
vexing test: an activist investor that appears to be agitating for his ouster.
BHP CEO Andrew Mackenzie has come under fire in recent months from Elliott Man-
agement Corp., a hedge fund
founded by Paul Singer that is
pushing for sweeping changes
at the British-Australian mining company. Unless Mr. Mackenzie acts more aggressively
on the fund’s recommendations soon, Elliott believes
BHP’s board, under new Chairman Ken MacKenzie, should
review the CEO’s position, according to people familiar with
the matter.
It is the latest significant
problem for Mr. Mackenzie,
who as CEO has faced challenges ranging from a catastrophic dam failure in Brazil
to a commodity-price collapse
that ravaged his company’s
balance sheet and forced him
to break a promise to never
cut the company’s dividend.
Investors closely watched
the new chairman at the company’s annual general meeting
in London on Thursday for
signs of his support for the
embattled CEO.
“Andrew Mackenzie and his
leadership team have delivered
in the past five years to set up
BHP for success,” the chairman
told shareholders.
The notion that the BHP
chief executive is on a timeline
“is simply false and without
merit,” Mr. MacKenzie added
at a media briefing at the investor meeting.
The dispute with Elliott has
solidified discontent among
some investors with BHP’s performance over Mr. Mackenzie’s
tenure—a five-year period dur-
ing which the company’s stock
has lagged behind some peers.
BHP’s London-listed shares
have lost 27% of their value in
that time, compared with a 6%
gain for Glencore PLC and an
11% rise for Rio Tinto, according to FactSet, a data provider.
Critics say he failed to
swiftly deliver on promises
made to clean up its debtladen balance sheet and exit
unprofitable businesses.
Elliott has zeroed in on
long-known BHP quirks such
as its dual listing in London
and Sydney and its large U.S.
oil-and-gas arm. Elliott has
urged BHP to spin off its U.S.
oil-and-gas assets and criticized
“value-destructive
deals,” saying management
should instead focus on its
“world-beating mining assets”
and share buybacks.
The hedge fund recently
wrapped up a world tour
meeting BHP investors and has
built support for some of its
ideas.
Nissan Halts Its Auto Production in Japan
BY PETER LANDERS
TOKYO—Nissan Motor Co.
said Thursday it was suspending
vehicle production for the Japanese market at all Japan plants
because it found improper inspections took place even after
it said it fixed the problem.
The revelations deepened a
scandal that emerged in late
September with findings by
Japan’s Transport Ministry
that Nissan employees without
proper qualifications were
conducting safety checks.
ONLINE
Continued from page B1
scored a coup in June when
Nike Inc. agreed to sell some
of its products directly to the
e-commerce company, and
over the years it has reached
agreements with department
store stalwarts such as Calvin
Klein, Kate Spade and Levi
Strauss.
Amazon has also extended
its reach into physical stores,
buying grocer Whole Foods,
and striking a deal with department store Kohl’s Corp.
that lets shoppers return
goods bought on Amazon at
82 Kohl’s locations.
Wal-Mart is framing itself
as the only e-commerce operation that will be able to challenge Amazon directly, even
though its website draws
The ministry said inspection documents were falsely
stamped with authorized inspectors’ seals, equivalent to a
signature in Japan.
In its initial response, Nissan recalled nearly all the vehicles it sold in Japan over the
past three years—about 1.2
million units—so that they
could be rechecked for safety.
Nissan said it took corrective
measures by Sept. 20, two
days after the ministry’s own
inspectors pointed out the
problem to the auto maker.
Thursday, Nissan said it
hadn’t fully fixed the problem
and unregistered employees
were still performing parts of
the final vehicle inspections.
It said it planned to reinspect about 34,000 vehicles
produced between Sept. 20
and Wednesday, most of them
not yet sold to customers.
Those that have been sold
might be recalled, it said.
An official at Japan’s Transport Ministry said it had been
briefed on the new problems,
but would wait for a more de-
tailed report before deciding
whether further action was
needed. The suspension affects all six plants in Japan
operated by Nissan and affiliate Nissan Shatai.
Nissan has said the problems don’t affect overseas
plants or vehicles exported
from Japan because inspection
rules for those vehicles are
different. A spokesman for
Nissan said the inspection issues don’t affect vehicle safety
and that the company believes
its cars are safe.
about half as many monthly
U.S. visitors, according to the
research firm comScore.
“Wal-Mart is positioning itself as a clear No. 2 in the
space,” said another person
familiar with the discussions.
Like other department
to July 29.
Joining with Wal-Mart
would help draw shoppers to
Lord & Taylor’s website, which
attracted an average of
849,000 unique monthly U.S.
visitors
from
February
through July, according to
comScore. That compares with
160 million for Amazon.com
and about 79 million for WalMart.com.
Smaller brands and retailers
are wrestling with how to balance exclusivity with the need
to grow online as Amazon and
Wal-Mart get bigger, said
Roshan Varma, vice president
in the retail practice at AlixPartners, a consulting firm.
“It’s a little bit of a prisoner’s
dilemma. Are you going to defect or stay on your own?”
Higher-end brands have
shied away from joining with
Wal-Mart because of its discounter roots. But several
brand executives said they
need to rethink their approach
to compete in a world increasingly dominated by Amazon.
Under the plan, walmart.com
would give Lord & Taylor dedicated space on its website, but
Lord & Taylor will continue to
operate its own website. In the
future, shoppers ordering from
lordandtaylor.com would be
able to pick up and return
items at Wal-Mart’s 4,700 U.S.
retail stores, said one of the
people familiar with Wal-Mart’s
impending deal with Lord &
Taylor. Wal-Mart executives
said in recent weeks the company is working to allow returns from third-party online
sellers at U.S. stores.
The department-store chain
will own the inventory and
fulfill orders from the site.
“The only difference,” the person said, is that it happens to
be on walmart.com.”
For Lord & Taylor,
the Wal-Mart
alliance could bring a
boost in web traffic.
store chains, Lord & Taylor,
which is owned by Hudson’s
Bay Co., is struggling with
sluggish sales and declining
foot traffic. Sales at Hudson’s
Bay’s department store group,
which includes Lord & Taylor,
fell 1.6% in the three months
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
NY
Friday, October 20, 2017 | B6A
PAID ADVERTISEMENT
CHINA DAILY
ALL YOU NEED TO KNOW
This supplement was paid for and prepared solely
by China Daily, an official publication of the People’s
Republic of China.The Wall Street Journal news
organization and advertising department were
not involved in the creation of this content.
Heart to Heart
Shafiq Bilal, from Afghanistan, and nurse Li Yanmei form hearts with their hands on Sept. 13 after he was treated for congenital heart disease at a
hospital in the Xinjiang Uygur autonomous region. A group of Chinese doctors conducted free examinations in August for children from birth to 14
years old in Kabul. Courtesy of the Red Cross Foundation of China, more than 20 children diagnosed with the disease underwent surgery in China.
WANG JING / CHINA DAILY
MORE THAN JUST A FAD
FITNESS FANATICS FUEL
LUCRATIVE INDUSTRY, P4
Automated and Open
Around the Clock
By WANG ZHUOQIONG
On the first floor of a
residential building outside
the Renmin University of
China campus in Beijing,
young college graduates
pop into an automated selfservice convenience store.
They scan their QR codes
to enter the shop and pay
for their favorite items by
using WeChat at a special
checkout point before
leaving.
After their first visit, facial
recognition programs allow
shoppers to get in and out
of the 24-hour outlet without
using QR codes.
Novel, yes. Unique, no, as
this is just one of 12 cashierfree outlets unveiled by
Xiaomai,short forXiao Maipu
Technology Development Co.
Ltd., in Beijing.
By the end of the year the
number is expected to rise
to more than 50 shops.
“Staff-less stores can
reduce the high costs
that often keep traditional
convenience stores from
fast expansion and healthy
revenue growth,” said Quan
Bin,deputy general manager
at Xiaomai.
The company has always
catered for communities in
colleges and universities.
But last year it upgraded
its technology, turning its
outlets into cashier-free
zones.
In April Xiaomai opened its
first automated store.
In July Aplus Capital and
Chenshan Capital invested
125 million yuan ($18.5
million) in the company.
Xiaomai plans to use the
cash to build up its supply
chain and upgrade its
products and system.
Most of the outlets are
only 24 square yards, the
size of a tiny room, and sell
about 600 different kinds of
products.
They are all automated
with just one member
of staff packing shelves.
In-store cameras keep an
eye on shoppers, while big
data analysis highlights what
products are hot and what
are not among customers.
Xiaomai is not the only
company in the automated
store sector. Alibaba Group
Holding Ltd. opened Tao
Cafe, a cashier-free retail
store, on July 8. It uses a
facial and voice recognition
system.
BingoBox is another
company in the field. The
Guangdong startup plans
to open 5,000 automated
outlets throughout China
over the next 12 months
after receiving 100 million
yuan in first-round funding.
The market could become
extremely crowded with
technology and customer
experience deciding the
winners and losers.
“Benefits will become
more evident when
technology matures,” said
Jason Yu, general manager
of Kantar Worldpanel China.
“At the moment no one
can offer it at a good level
of scale, and the customer
experience is still quite poor.
It is not superior to a vending
machine.”
Still, just as crucial are the
products and getting the
selection right, as well as the
supply chain.
“The nature of
convenience stores will not
changethroughtheevolution
of technology,” Quan of
Xiaomai said. “Ultimately,
merchandise selection,
quality management and
excellent supply chains are
vital to survival.”
An automated store opened by Xiao Maipu Technology
Development Co. Ltd. in Beijing. ZHAO NAIMING / FOR CHINA DAILY
Foreign Financial Firms
Gear Up for New Era
Leading policymakers pledge to further relax overseas investment
restrictions to counter the decline in capital inflows. Li Xiang reports
hina is accelerating plans
to open up the financial
industry, with leading
policymakers pledging to
relax foreign investment
rules to counter the decline
of capital inflows.
Industry insiders had expressed
concern that the government’s focus on
containing systemic risks and reducing
capital outflows would slow the pace of
economic reform.
This in turn threatened to derail plans
to give foreign banks and firms greater
access to China’s financial industry.
But those fears have been dispelled
after the State Council, China’s cabinet,
vowed to further reduce market
restrictions for foreign companies in the
banking,securities and insurance sectors.
“The government’s attitude this time is
different from just putting out some vague
slogans,” said QuTianshi,an economist at
ANZ Group, also known as The Australia
C
and New Zealand Banking Group Ltd.
The State Council’s decision means
that ministries will now have to come
up with timetables and blueprints as
regulations are rolled back.
It also comes at a time when inward
foreign investment fell 1.2% to 485.4
billion yuan ($74.9 billion) between
January and July compared with the
same period last year.
Opening up the industry is part of
China’s efforts to deepen economic
reform, with President Xi Jinping calling
for a more robust financial sector while
guarding against systemic risks.
Economists and analysts stressed that
China is better positioned than before
to further loosen financial regulations
with stable economic growth, a stronger
currency and a more sophisticated
business environment.
“The Chinese economy (is now)
integrated with the global economy,” Qu
said. “China should have a more open
financial sector to reflect its economic
status and to adapt to the trend of
globalization.”
Since the start of the year China has
made concerted efforts to open up the
financial industry and capital markets.
InJuly China introduced Bond Connect.
The financial link between the mainland
and Hong Kong means that overseas
investors could trade for the first time
in mainland bonds without setting up
onshore accounts.
Foreign investors had already been
given wider access to the Chinese stock
markets in Shanghai and Shenzhen
through the QFII, or qualified foreign
institutional investor, program.
They also gained further entry through
the RQFII, the renminbi qualified foreign
institutional investor scheme between
the Chinese mainland and Hong Kong in
trading bonds and shares.
SEE “MONEY” ON P4
Ax Falls on
Illicit Bitcoin
Dealings
By CHEN JIA
The fledgling firm, which was at the
forefrontofvoicerecognitiondevelopment,
had an AI research institute in Anhui.
Since then it has developed into one
of Forbes’ Most Innovative Growth
Companies in Asia, with a core business
that includes speech technology research,
development and marketing of software
applications, system integration and
hardware products.
“Over the past decade the number of AI
employees at the institute has grown at a
high rate,” said Gao, 34, who is now vicepresident of iFlytek’s AI research institute.
“We have about 500 staff in the institute,
up from 15 in 2005.”
InAugust the Shenzhen-listed company
reported that revenue in the first half of the
year rose 43.79% to 2.1 billion yuan ($324
million) compared with the corresponding
period in 2016.
China’s crackdown on bitcoin
exchangesisasignthatthetopregulator
no longer tolerates cryptocurrency
trading in the country as it has fueled
illegal fundraising and cross-border
money laundering, experts said.
Two of China’s bitcoin exchanges,
Huobiand OKCoin,announcedon Sept.
16 that they will halt all virtual currency
trading by the end of October, after
they“received the notice and guidance
from the regulators,” according to their
websites.
TheBeijingNewsreportedthatsenior
managers of these two exchanges were
forbidden to leave Beijing, and were
required by financial regulators to
cooperate with further investigations.
It followed an announcement by
BTCChina, one of the country’s biggest
bitcoin exchanges, that it would close
its trading platform by the end of
September.
“It is unlikely that cryptocurrency
trading will resume in the short term,
as the financial regulators have made
this decision,” said Deng Jianpeng, a
professor at the Law School of Minzu
University of China.
Without mature and special laws on
bitcoin trading, the cryptocurrency’s
exchange was seen as a channel to
transfer personal assets overseas,
which is supposed to be under the
supervision of the country’s foreign
exchange administration.
SEE “AI” ON P2
SEE “BITCOIN” ON P4
Two participants prepare for an AI competition for teenagers on Aug. 13, in Suzhou, Jiangsu
province. WANG JIANZHONG / FOR CHINA DAILY
AI Industry Needs Brains
By OUYANG SHIJIA
GaoJianqingwas searchingforthejobof
his dreams nearly 11 years ago.
Fresh from graduating at the School
of Computer and Information at Hefei
University of Technology, he was looking
to break into the artificial intelligence
industry.
It was a challenging period, a brainteaser as complex as AI.
“Back then,artificial intelligence was not
a subject that cropped up,” Gao said of his
timeafterleavingcollegeinAnhuiprovince.
“It would take many years before AI
became a hot topic like it is today. Most
of my classmates chose to work for the
booming internet and software sectors
instead of choosing AI-related jobs.”
Gao finally found the right opening to
go with his passion for voice recognition
technology and joined iFlytek Co. Ltd. in
2006.
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Additional information is on file with the Department of Justice, Washington, D.C.
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CHINA DAILY
AI: Finding Right People Is the Biggest Challenge
FROM PAGE 1
Gross profit came in at 1.03 billion
yuan during the first six months, up
47%. But net profit fell 58% to 107.28
million yuan as the firm invested
heavily on expanding its operations.
Part of that included an aggressive
hiring policy to attract the brightest
and the best to work on smart voice
technology projects and other AI
ventures.
In the past few years, iFlytek has
set up a series of research labs with
domestic and overseas universities
and institutes, including Tsinghua
University in Beijing, University of
Science and Technology of China in
Anhui province, Harbin Institute of
Technology in Heilongjiang province
and York University in Canada.
“Collaboration is of mutual benefit
to our company and the academic
world,” Gao said. “We offer business
insight and data, while the schools
provide cutting-edge research and
expertise.
“During the process, we work
together to train talented people in
new AI-related skills.”
With big data and mobile internet
technology sectors booming, China
has quickly developed a thriving AI
industry. But finding the right people
has been crucial to its success and
vital for its future development.
Many of China’s big internet players
are looking at overseas options to stay
one step ahead of the competition.
Tencent Holdings Ltd., known for its
popular messaging service WeChat
and gaming sites, announced in
May that it would open a research
laboratory in Seattle.
Heading the operation will be a
former Microsoft research scientist,
Yu Dong.
“We hope the AI facility will not only
be a laboratory, but also a connector
to bring together the world’s leading
talent,” said Zhang Tong, director of
Tencent’s core AI lab and former big
data director at Baidu Inc.
In many waysTencent is following in
the footprints of Baidu. The Chinese
search engine opened an AI lab in
Silicon Valley nearly three years ago
and has since set up a second facility.
The Chinese ride-hailing company
Didi Chuxing has a research operation
in the same area.
Naturally, signing up exceptionally
talented professionals for the next
wave of R&D in artificial intelligence
has become a priority.
A report by the networking site
LinkedIn showed that out of a total of
1.9milliontechnicalAIprofessionalsin
the world only 50,000 work in China.
Up to 850,000 are employed in the
U.S., which still dominates the sector,
the report said.
But apart from the U.S., China has
the greatest market potential, said
Wang Di,vice-president of technology
at LinkedIn China.
Gao, of iFlytek, said: “There are
sufficient AI-related professionals
in terms of image recognition
coming from domestic colleges and
universities.
“A n d m a ny l ea d i n g g l o ba l
researchers also have Chinese
backgrounds,whichwillhelpusrecruit
them.”
CONTACT US
News Digest
E-commerce zones to be extended
China will set up more crossborder e-commerce pilot zones to
facilitate trade and boost its global
competitiveness, according to a
decision made at a State Council
executive meeting chaired by
Premier Li Keqiang on Sept. 20. It
was decided to extend the success
of such zones to more cities that
have good infrastructure and strong
potential for trade and e-commerce
development.
The State Council set up the
original initiative in Hangzhou,
Zhejiang province, in 2015 before it
was expanded to another 12 cities,
including Shanghai, Tianjin and
Chongqing, starting early last year.
Central bank injects fresh funds
China’s central bank on Sept. 14
injected fresh funds to the money
market via reverse repos to keep
liquidity stable. The People’s Bank
of China pumped 100 billion yuan
($15.3 billion) into the financial
system through a process by which
the central bank buys securities from
commercial banks through bidding
with an agreement to sell them back
in the future.The operations included
60 billion yuan seven-day reverse
repos priced to yield 2.45%, 30 billion
yuan of 14-day contracts with a yield
of 2.6% and 10 billion yuan of 28-day
agreements with a yield of 2.75%.
The central bank has increasingly
relied on open market operations
for liquidity management, rather
than cuts in interest rates or reserve
Airbus opens new center in Tianjin
The aircraft manufacturer Airbus
Group SE on Sept.20 inaugurated its
first overseas wide-body completion
and delivery center in Tianjin, and
delivered its first European and
Chinese made wide-body A330
aircraft to Tianjin Airlines from the
new plant.
The Tianjin center will cover
aircraft completion work, including
cabin installation, body painting
and flight tests, as well as customer
endorsement and aircraft delivery. It
will employ more than 250 people in
total and will be able to deliver two
aircraft a month by early 2019.
45 years of ‘ping-pong diplomacy’
Former ping-pong world champion Zheng Huaiying plays a
demonstration game at Killerspin House in Chicago on Sept. 16 to
celebrate the 45th anniversary of the so-called ping-pong diplomacy
between China and the U.S. She participated in those 1972 games that
helped open a dialogue between the two nations. WANG PING / XINHUA
requirement ratios. China set the
tone of its monetary policy in 2017
as prudent and neutral, keeping
appropriate liquidity levels but
avoiding excessive liquidity injections.
Mobike hits the road in U.S.
Mobike,one of China’s biggest bike
sharing brands, announced its entry
into the U.S. market on Sept. 20.
Mobike’s signature silver and orange
dock-less bicycles are now on the
streets of Washington, D.C., making
the U.S. the company’s seventh
overseas market, following Britain,
Italy, Japan, Singapore, Thailand and
Malaysia.
“ We are ve r y exc i te d t h a t
Washington has become our first
destination in the North American
market,” said Mobike’s founder Hu
Weiwei. “Mobike is dedicated to
cultivating bike-sharing culture by
working with cities across the globe.
Entering the U.S. is a key step. We
look forward to working with more
cities in the U.S. to make cycling
the most comfortable, economical,
and environmentally friendly
transportation.”
Ready for shopping extravaganza
Delivery firms and pickup stations
are getting ready for the world’s
largest shopping festival on Nov.
11 organized by the e-commerce
giant Alibaba Group Holding Ltd.,
as its logistics arm Cainiao Network
Technology Co. Ltd. prepares for
the event with a vast, military-scale
campaign.
The number of parcels generated
in the promotion from Nov. 11
through 16 is projected to smash
last year’s record of 657 million to hit
1 billion, putting more pressure on
couriers as they battle against traffic
congestion to satiate customers’
appetite for same-day delivery, said
Yu Yan, an official in charge of courier
supervision with the State Post
Bureau.
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All Rights Reserved
Innovation Special
Attendees from Guangzhou and Silicon Valley pose at the promotional event for the
Fortune Global Forum 2017. PROVIDED TO CHINA DAILY
Seeds of Fortune Sown in
Four Corners of the Globe
By ZHANG ZHAO
The government of Guangzhou, the
host city of the Fortune Global Forum
2017 in December, recently held
promotion campaigns for the forum
in San Francisco and Barcelona, the
last two stops of a global promotion
program.
Events also took place in 12 other
cities, including Beijing, Paris, Hong
Kong,Tokyo,MunichandLondon.The14
events attracted representatives from
more than 2,000 companies, including
Fortune Global 500 enterprises. At the
Beijing event alone, representatives of
more than 200 companies took part.
Each campaign not only raised
awareness of the forum, but also
included visits to local companies and
media exchanges.
The promotion campaign has helped
toattractglobalcompaniestotheforum
and to introduce Guangzhou’s business
opportunities to the outside world,
drawing attention from high-quality
international projects, technology and
personnel, Guangzhou officials said.
By the end of last month, about 140
Fortune 500 companies had decided
to take part in the forum, and the final
number is expected to exceed 200.
More than 80 people from 58 Fortune
500 companies have registered for the
event, including 36 CEOs.
The organizers have invited another
116 global industry-leading companies,
50 of which have confirmed their
attendance. About 40 had registered
by the end of last month.
The theme of the forum, “Openness
and innovation: Shaping the global
economy,” demonstrates “a focus that
fits perfectly with our meeting location
in Guangzhou, China’s southern
gateway to the world and a fast-moving
center of innovation,” said Alan Murray,
president of Fortune magazine.
“As a center of international trade
for many centuries, Guangzhou is both
a renowned symbol and a modern
manifestation of China’s participation
in global commerce.
“Guangzhou is well-known as a
business-friendly city, one that has
established economic and trade
relationships with more than 200
countriesandregionsonfivecontinents.”
Last year, trade between Guangzhou
and its top trade partner, the United
States, was worth 112.2 billion yuan
($17.1 billion), accounting for 13.1%
of the city’s total international trade.
Guangzhou companies invested in 48
projects in the U.S. in 2016. The total
contracted investment was $230
million, 15.3% more than in 2015.
Also in 2016, trade between
Guangzhou and Europe was worth
130.8 billion yuan, 8.1% higher than
the year before. The figure included
more than 77 billion yuan in exports to
Europe, up 9.5%.
The initiatives that Guangzhou has
launched to facilitate investment
promotion and business development
are “highly attractive” to multinational
companies, Murray said.
That includes the hubs that have
been announced as part of the city’s
development plan for international
shipping, aviation, science and
technology innovation, he said.
“Guangzhou’s commitment to
innovation in information technology,
artificial intelligence and biotechnology
puts it at the very center of the
revolution that is shaking business
today.”
Global Honors
In June Guangzhou ranked 40th
among 361 global cities in the World
Urban System Rankings, published
by the Globalization and World Cities
Research Network, becoming a firsttier international city for the first time.
In March the city was named the
top Chinese city of opportunity for the
second consecutive year in a study by
the Chinese Cities of Opportunity,
L a s t D e c e m b e r, G u a n g zh o u
retained its top spot among Chinese
cities in the China Sustainable Cities
Report 2016: Measuring Ecological
InputandHumanDevelopment,issued
by the United Nations Development
Program.
The report showed that Guangzhou
achieved balanced development and
the highest level of comprehensive
development among Chinese cities.
The city has topped Forbes’ China
List of Best Cities for Business five
times in the past six years.
Go-ahead Guangzhou
Sets Stage for Progress
By CHEN MEILING
The Fortune Global Forum
2017, to be held in Guangzhou,
Guangdongprovince,willfocuson
themajorchallengesmultinational
corporations face as a result of
modern economic reforms.
A new innovation revolution
is emerging in the digital era.
Industries are being transformed
by advanced technologies,
including artificial intelligence,
biotechnology, the internet of
things and autonomous vehicles.
This year’s Fortune Global
Forum, in December, aims to
explore these trends, both in
China and throughout the world,
providing clarity for decisionmakers as they seek new
opportunities,withlessrisk,inthe
emerging innovation revolution,
accordingtotheeventorganizers.
Key topics under discussion
will include innovative reforms,
a globalized future, 21st-century
leadership and sustainable
development.
Cai Chaolin, director of the
forum’s executive committee,
said openness and innovation
is in Guangzhou’s genes and
conforms to the global trend.
The city’s role as the event’s
host shows Fortune Global 500
companies’ and multinational
enterprises’ optimism for the
city’s development, he said.
Cai said Guangzhou
has established long-term
cooperation with Fortune
magazine. As a result, the
international version of the
Fortune BrainstormTech will take
placeinGuangzhouonDec.5and
6. It is the first time the event will
have been held outside the U.S.
The local government has
set up a Chinese innovation
award with the magazine, the
first technological innovation
competition Fortune has
conducted in China.
The event will select Chinese
startups with great potential
to become innovative leaders
through three phases of
competition.
Candidates must have been
founded no longer than five
years ago and have an annual
income of less than 200 million
yuan ($29.9 million).They can be
involved in e-commerce,financial
technology, artificial intelligence
and robotics, mobility, green
technology, entertainment or
education.
The five companies that make
it to the final will be invited to the
Fortune Global Forum 2017.
The activity is expected to
attract the world’s attention
to China’s innovation and
entrepreneurship, Cai said.
Cai Chaolin, director of the executive committee of Fortune Global Forum
2017, speaks at the New York promotional event. PROVIDED TO CHINA DAILY
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Beijing Special | 3
CHINA DAILY
New Funds,
Policies Aim
to Improve
Lifestyles
By YUAN SHENGGAO
The Beijing government is aiming to create a new look for the capital, which combines a traditional image with modernity. LUO XIAOGANG / XINHUA
Beijing Makeover Underway
Overhaul campaign restores capital’s original look and tackles emissions. Li You reports
he municipal government
of Beijing has launched
a long-term campaign
to renew the city’s look,
restore its traditional relics
and tackle pollution.
During the first half of 2017, Beijing
residents witnessed a citywide
campaign pushed by the Beijing
government to address unauthorized
modifications to the walls of
residential buildings.
The basements or ground floors
of some residential apartments had
been modified to house shops or
restaurants on the street level.
Since the 1980s, many landlords
have modified their ground floors
for private businesses and rented
their houses to shop owners for lower
prices than commercial spaces.
However, these transformations
caused safety hazards. Some
properties changed the original
layout of the buildings, damaging
their structural integrity. Others
constructed unauthorized parts in
public areas.
No. 42 Sanlitun South, located
in Chaoyang district, used to be
called “Dirty Bar Street” by locals.
Tian Liming, a resident who has lived
there for 50 years,regarded the bars,
nail salons and DVD shops that once
inhabited in the neighborhood as
“tumors.”
“Thestreetinfrontoftheresidential
building was constantly covered in
trash,as well as vomit and urine from
people who got drunk in the bars at
night. It became smelly and sticky.
That’s when people started calling it
Dirty Bar Street,” Tian said.
It became difficult to see the
T
45.85
million square yards
of illegal construction were removed in
Beijing by August
exterior walls of the buildings.
Neighbors began to worry about the
safety of the buildings, according to
Tian.
At the beginning of 2017,the Beijing
municipal government proposed 10
major measures to refresh the city’s
look, including recovering its original
appearance, removing unauthorized
building entrances and relieving
population pressure in central urban
areas.
On April 24, 33 businesses based
in No. 42 Sanlitun South with
unauthorized modifications were
asked to restore the original design.
The exterior walls of the buildings
were reconstructed with bricks. The
unauthorized openings created by
damaging the exterior walls were
permanently shut.
“Because the apartments are
partly underground, we had to
renovate them to ensure they
wouldn’t flood. Then we planted
flowers,” said ZhaoYong,an official at
the local urban management office.
After the restoration work, the
number of shops and businesses in
Beijing dropped.
To provide a convenient life for
residents, the city built more than
3,000 booths for shops to sell daily
necessities such as food by the end
of July.
“To improve the quality of our
management, the process should
be implemented like embroidery.We
should stick to the practical problem
and persist in our work. The value of
our work should be judged by the
satisfaction of the people we are
serving,” said Cai Qi, Party chief of
Beijing.
By August, a total of 45.85 million
square yards of illegal construction
were removed.
In the past eight months,the urban
management office dealt with 103
unauthorized openings on average
each day.
Pollution
B l o c k i n g of f u n a u t h o r i ze d
entrances in residential buildings
is far from the only measure taken
to renew the city’s look. In midSeptember, Beijing announced it will
adopt tougher protocols to deal with
air pollution.
The Beijing Commission
of Housing and Urban-Rural
Development announced the
suspension of construction during
the winter heating season,in an effort
to improve the city’s air quality.
Any work that may cause dust,
including demolition and outdoor
earthwork, will be shut down from
Nov.15 to March 15,the entire heating
season.
The announcement follows
the capital’s newest emergency
response protocols for air pollution,
which is the fifth modified version.
The latest version proposes
compulsory measures to cut
airborne pollutant emissions.
In Beijing and other Chinese cities,
the air pollution emergency response
system has four levels, from blue —
the lowest — through yellow and
orange to red.
The fourth version of response
protocolsrequiredthemanufacturing
industry to stop production if the
pollution reaches the orange level.
But the newest version has reduced
the threshold to yellow.
By the end of the year, the
concentration of PM2.5 — particulate
matter with a diameter of less than
2.5 microns — should meet the
requirement of being lower than
60 micrograms per cubic meter (1
cubic meter is equal to 35 cubic feet)
on average, according to the city’s
Bureau of Environmental Protection.
Culture, history
Beijing, as a historical city
established more than 3,000 years
ago,has a glorious history.According
to the Beijing government, there are
3,840 immovable cultural relics, 126
national-level key cultural relics and
216 municipal-level cultural relics in
the city.
The Beijing government has
put great effort into restoring the
city’s historical relics. Through the
campaign to remove unauthorized
entrances, Beijing’s hutong , or
traditional alleyways, were also
covered.
Chen Jining, deputy Party chief
of Beijing, said the rich historical
and cultural heritage in Beijing is its
golden name card.
“Cultural relics are precious and
cannot be rebuilt once lost. We
should carry out more archaeological
activities, teaching the public about
the cultural relics protection work.”
Memory Chip Tech Achieved With Local Government Support
By LI YOU
S m a r t p h o n e u s e r s a l wa ys
complain about their short
battery life and computer users
rage if power is cut before they
save their documents; but recently
developed Chinese chip core
components could save them from
these issues in the future.
In May, researchers from Beihang
University and the Institute of
Microelectronics of the Chinese
Academy of Sciences announced
they will deliver fully functional core
components of 80nm STT-MRAM,
or shared transistor technology
random access memory, by the
end of 2017.
The project was sponsored by
the Beijing Municipal Science &
Technology Commission. After
three years of research, the latest
generation of MRAM technology,
the Magnetic Tunnel Junction of
80nm diameter, has been created.
Memory is one of the most
important parts in electronic
systems. At present , most
electronic devices, including
mobile phones and computers,
use traditional memory systems
that tend to lose data if shut down
unexpectedly.
“STT-MRAM is based on the spin
of an electron to store data. It has
the advantages of a large storage
capacity and fast storing speed.
Once the electricity is cut off, it
won’t lose the data that has been
input,” said Cao Kaihua, a PhD
candidate from Beihang University.
He is one of the main participants
of the project.
Zhao Weisheng, a professor
at Beihang University and the
manager of the project, said that
the Beijing Municipal Science &
Technology Commission and
the Education Commission have
backed them up with practical
support.
“The project initiated by the
Beijing Education Commission
allowed us to recruit more PhD
students and excellent researchers.
The Beijing Municipal Science &
Technology Commission has
assigned us sufficient project
funding,” according to Zhao.
“Thanks to their support, we
gained the opportunity to undertake
this major project ourselves.”
A s c r e a t i n g S T T- M R A M
required a large amount of new
materials, a new circuit structure
and new processing technology,
the fabricating process was very
challenging, Zhao said.
H oweve r, s t u d i e s i n t o t h e
technology are not yet completed,
he added.
The technology patents involved
in its fabrication have not been
co n ce n t ra t e d i n o n e o r two
research institutes or companies,
An intelligent robot catches visitors’ eyes at the third National Mass
Entrepreneurship and Innovation Week in Beijing. ZHANG CHENLIN / XINHUA
meaning each of the parties still
has the potential to develop and
improve on the technology.
The research conducted in
creating STT-MRAM reached
foreign institutes’ standards,
but the quality of the research
e q u i p m e n t st i l l l a gs b e h i n d
international peers, and highprofile workers are still in short
supply, Zhao said.
“Our researchers spared no
efforts in researching STT-MRAM
in the past three years. We believe
that we can finally create the fully
functional 80nm STT-MRAM in the
coming years,” Zhao said.
In recent years, Beijing has
improved its civil affairs policy
environment and will stress the
needs of the people, pay attention
to their concerns and ease“big city
malaise,” according to Cai Qi, Party
chief of Beijing.
He said that a balanced urbanrural public service system is
in the planning stages, aiming
to ensure that residents can
receive education, see doctors,
earn a reasonable salary, afford
accommodation and have a sense
of security.
Statistics from the Beijing
Municipal Bureau of Civil Affairs
show that the funds earmarked for
civil affairs grew to 22 billion yuan
($3.32 billion) in 2017, a 65.4%
increase on 2012, aiming to serve
4 million residents.
The minimum living standard,
a government subsidy for lowincome families, was recently
unified in rural and urban areas for
the first time, now set at 900 yuan
per month.
More than 420,000 urban
residents and 275,000 rural
residents found jobs with the
support of the local government
since2012,accordingtotheBeijing
Municipal Human Resources and
Social Security Bureau.
Zhao’s project is one of the
projects funded by the Beijing local
government. Beijing is focusing
on cultivating innovation-driven
projects and industry upgrades.
In 2016, the amount of research
and development expenditure in
Beijing reached 148 billion yuan
($22.48 billion), an increase of
58% from 2011. That accounts for
6% of the city’s GDP, ranking No.
1 in the country and higher than
the average level of developed
countries. The measures the
Beijing government rolled out to
boost technology and research
have begun to take effect.
Senior residents receive care at a
pension service center in Fengtai
district, Beijing. LI XIN / XINHUA
The employment rate for
Beijing graduates remains
at 96%, while the registered
unemployment rate in urban
areas stands within 1.55%, the
bureau said.
It provided subsidies of up to
10.96 billion yuan to help about
1.2 million people to find a job
from 2012 to 2017.
Cai said the city will also
announce more policies to
encourage entrepreneurship
and strengthen career training
to ensure income growth in line
with economic development.
Data from the Beijing Municipal
Commission of Health and Family
Planning showed the average life
expectancy of Beijing residents
has reached 82.03 years.
To ease the pressure of its
aging population, the city is
working on shifting the traditional
organization-based care for the
elderly model toward community
or home-based care, Cai said.
Beijing has launched China’s
first regional regulation for homebased elderly care, mapping out
the standards for catering,quality
of life and medicine allocation,
according to the Beijing Civil
Affairs Bureau.
The number of newly built
service stations in communities
reached 350 in the last five years.
“We are constructing a more
professional operating model to
meet the diverse demands for
elderly care based on residential
and community resources,” Cai
said.
The local government is also
making efforts to construct a
healthy and stable real estate
industry to help more people to
meet their residential needs.
Public profit rented houses
targeting low and middle income
familieswereallocatedto146,800
people by June, according to the
Beijing Municipal Commission
of Housing and Urban-Rural
Development.
In April, the commission
released a plan to rent or sell
30% of specified preferential
houses to new Beijing residents
who emigrated from other parts
of China, receiving a favorable
response from the public, it said.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B6D | Friday, October 20, 2017
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4 | Business
CHINA DAILY
Money: Light Goes Green
As Red Tape Is Slashed
FROM PAGE 1
As the pursuit of fitness becomes more popular in China, sports brands want to be at the forefront of the development of
this culture. PROVIDED TO CHINA DAILY
It’s All to Play For
The multimillion sports apparel industry is determined to ensure
that in China, fitness is not just a fad. Sun Yuanqing reports
hen the Brazilian
N ey m a r m a d e
headlines
re ce n t l y a f te r
becoming the
w o r l d ’s m o s t
expensive soccer player, in a
transaction worth 222 million euros
($261 million), it highlighted once
again that when all is said and done
big sports are big business.
In the recent highly popular TV
drama in China, The First Half of
My Life, Tang Jing, who plays one
of the show’s heroines, helps forge
her on-screen persona by being
portrayed following a daily fitness
routine garbed in a popular brand of
sportswear.
While Neymar and others in topleague competitive sports grab
headlines because of the huge
sums of money they command, it is
the likes of Tang who are the frontline marketeers as multinational
corporations fight for the huge
revenues at stake in the world of
sports and personal fitness.
At stake in China is a personal
fitness market that the marketing
consultancy Euromonitor reckons
has almost doubled over the past
five years. The value of sales of
sports clothing alone was 187 billion
yuan ($27.8 billion) last year, 11%
higher than the year before, it says.
China’s national fitness plan
administered by the central
government forecasts that by 2020
spending related to sports will be
worth 3 trillion yuan,making it a major
newdriverfordomesticconsumption.
Indeed, China is one of the fastest
growing markets for international
brands such as Nike, Adidas and
Puma, whose profits are swelling
as more and more people engage
in sports.
Adidas held an event called
Republic of Sports in China this
summer, setting up indoor venues
in four cities — Beijing, Shanghai,
C h e n gd u a n d G u a n gz h o u —
to provide sports and fitness
experience for visitors.
More than 100,000 people took
part in the national fitness campaign
with the brand within six weeks.
The passion for sports has
developed rapidly in the country
over the past few years, says Marc
Le Roux, vice-president of Sports
Performance, Adidas China.
W
Chinese consumers,
while interested in the
performance benefits of
specific products, are also
very focused on the design,
style and fit of a specific
product.”
ERICK HASKELL
MANAGING DIRECTOR OF UNDER ARMOUR
GREATER CHINA AND KOREA
$27.8
billion
The value of sales of sports clothing
in China last year, according to the
marketing consultancy Euromonitor
It is important to make these
activities attractive so the interest
they stir in people is not just a flash
in the pan, he says.
“For people who start sports,
creativity is very important.We know
that if we do sports, if we swim, if
we run, it can be boring at times
because it’s very repetitive. If you
don’t bring a bit of creativity you will
lose interest, so by adding creativity
in the sports you practice, you keep
the interest going and it pushes you
to the next level.”
Experiential marketing has
become more and more significant
for all brands.
Only 10 years after the Korean
sports brand Kolon Sports entered
the Chinese market it has 230
stores in China.The company, which
founded a hiking school to cater
to the rising number of outdoor
enthusiasts, focuses on sports
jackets, says Park Chang Yong,
Kolon’s vice-president.
While Nike and Adidas remain
the most popular sports brands in
China, new brands are also doing
well.
Since the American sports brand
Under Armour entered China in
2011 it has enjoyed huge, consistent
growth, its sales figures more than
doubling every year, it says.
It now has 179 new stores in 19
cities and says it expects this to
increase to 473 stores in 79 cities
by the end of this year. It recently
opened the Hangzhou Kerry Center
store, its biggest brand house in
China.
The label is now capitalizing
on tremendous opportunities in
e-commerce. In addition to official
online shops in the mainland, Hong
Kong and Taiwan it has opened
stores on TMall.com and JD.com.
“Chinese consumers, while
interested in the performance
benefits of specific products, are
also very focused on the design,
style and fit of a specific product,”
says Erick Haskell, managing
director of Under Armour Greater
China and Korea.
“Therefore, our goal is to market
these aspects of the product
prominently through both our
in-store and online shopping
experience. We’ve been optimizing
o u r p ro d u c t s a n d s h o p p i n g
experience (offline retail and
simultaneous online offers), in
compliance with demand and the
preferences of local consumers.”
Thebrandalsoprovidescustomers
the chance to interact with top
sportsmen and sportswomen with
events such as the Stephan Curry
Tour, the 2016 Michael Phelps China
tour and the 2017 Tom Brady China
Tour.
Kolon Sports has signed Tang
Wei and Song Joong Ki as brand
representatives to reach out to
young people. The brand is also
looking for collaboration with
designers.
Puma has worked with the singer
Rihanna, and industry observers say
she has added zest to the brand, its
collection Fenty X Puma, with whose
marketing the singer was closely
associated, becoming one of the
most sought-after products on the
market.
Wearable devices have become
sales winners for international
brands, too. Last year Nike put on
the market its Hyper Adapt Trainer
1.0, billed as the first shoes that can
tie themselves up. Puma also has
its own self-lacing sports shoes,
called Autodisc, and Decathlon has
developed sports underwear that
can detect the wearer’s heart beat.
At the end ofJune HSBC Holdings
Plc became the first foreign bank to
receive regulatory approval to set
up a majority-owned securities joint
venture in China.
The United Kingdom-based
global lender took advantage of
the decision by Chinese regulators
to relax the rules on foreign banks
setting up in the country.
HSBC Qianhai Securities Ltd., in
which HSBC owns a majority stake,
is expected to be open for business
by the end of the year.
Irene Ho, general manager and
CEO of the securities joint venture,
said the securities brokerage will be
involved in underwriting and crossborder mergers and acquisitions.
“The joint venture will enrich the
variety of our products available
to our mainland clients and allow
us to benefit from the opening
and growing capital market of the
Chinese mainland,” Ho said.
While major foreign players have
started making inroads into the
financial industry, their presence
remains limited.
The assets of foreign lenders
accounted for less than 2% of the
total Chinese banking sector, while
foreign insurers have only 5% of
market share on the mainland.
When you look at the global
numbers, those figures are tiny.
Economists at Deutsche Bank,
one of the leading lenders in Europe,
estimated that the global market for
financial assets was worth about
$294 trillion in 2015.
Analysts expect to see a
breakthrough in Chinese sectors
such as insurance and wealth
management as the country’s
affluent middle class search for
more sophisticated financial
services and products.
The country’s leading insurance
regulator, the China Insurance
Regulatory Commission,
announced it would further reduce
market restrictions for foreign
firms.
By c u t t i n g re d t a p e, t h e
commission hopes to encourage
overseas companies to enter
areas such as personal insurance,
healthcare and retirement funds.
As part of this easing in policy,
more foreign asset managers and
hedge funds have been given the
green light to develop onshore
products.
They will also be able to manage
assets for institutional and high-networth investors from the mainland.
UBS Asset Management plans to
issue one or two products in China
this year after the regulator granted
the Swiss firm a license to introduce
private funds.
“Localization is the key,” said
Aries Tung, head of strategy and
business development for China at
UBS Asset Management.
“We want to provide tailor-made
and flexible investment solutions
that meet the needs of Chinese
clients.”
Wan Zhe, chief economist at
the International Cooperation
Center, a think tank affiliated to the
National Development and Reform
Commission, believes the presence
of foreign firms will bring financial
expertise and more capital into
Chinese markets.
Hopefully,this will trigger marketinspired reform of the financial
sector.
“Ranging from stocks to bonds,
Chinese assets have attracted
growing attention from foreign
institutions and investors,”Wan said.
“Their presence will draw more
capital into the country and will
also help lift the global profile of the
Chinese currency.”
Jiang Xueqing and Zhuang Qiange
contributed to this story.
Banners of financial institutions on Pudong Avenue in Shanghai’s financial
district. YAN DAMING / FOR CHINA DAILY
Bitcoin: Game Is Over
FROM PAGE 1
Speculative investment fueled
bitcoin’s surge to about $5,000
earlier this year, marking a five-fold
increase since the end of last year.
Du Yan, executive director
o f t h e A s i a - Pa c i f i c Fu t u re
Financial Research Institute,
said the regulators’ crackdown is
“reasonable and just in time” to
cool down irrational investment
and prevent potential financial
risks.
The regulatory cost, from illegal
fundraising and cross-border
money laundering emerging from
bitcoin trading, is much higher
than the innovation benefits from
the cryptocurrency, pushing
policymakers to make the decision,
Du said.
T h e c ra c kd o w n , D e n g o f
Minzu University said, will not
spark market panic because the
investors have slowly digested
the facts as the information has
been gradually put out by media
and the exchanges since early
September.
The People’s Bank of China, the
central bank, ruled earlier that
initial coin offerings were illegal
because they had become a tool
to raise funds bypassing the
traditional regulatory system.
The National Internet Finance
Association of China also warned
investors earlier that bitcoin and
other virtual currencies lacked
a clear base for valuation, and
had become tools for illegal
fundraising, money laundering,
drug dealing and smuggling.
CHINA DAILY, YOUR ESSENTIAL GUIDE
NOW ON IPAPER KINDLE, NOOK AND SMARTEDITION
TRY BEFORE YOU BUY A SELECT E-READER
SMART EDITION
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | B7
MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average
S&P 500 Index
Last Year ago
23163.04 s 5.44, or 0.02%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.29 19.75
P/E estimate *
19.39 17.46
Dividend yield
2.22
2.61
All-time high 23163.04, 10/19/17
Nasdaq Composite Index
Last
2562.10 s 0.84, or 0.03%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.55 24.33
P/E estimate *
19.39 18.12
Dividend yield
1.95
2.15
All-time high: 2562.10, 10/19/17
Last Year ago
6605.07 t 19.15, or 0.29%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.19
24.15
P/E estimate *
21.15
19.55
Dividend yield
1.10
1.22
All-time high: 6624.22, 10/18/17
Current divisor 0.14523396877348
23500
2560
6600
23000
2530
6500
22500
2500
6400
22000
2470
6300
21500
2440
6200
2410
6100
Session high
UP
Close
t
DOWN
Session open
Open
t
Close
Session low
65-day moving average
65-day moving average
65-day moving average
21000
Bars measure the point change from session's open
20500
July
Aug.
Sept.
6000
2380
Oct.
July
Aug.
Sept.
July
Oct.
Aug.
Sept.
Oct.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
Transportation Avg
Utility Average
Total Stock Market
Barron's 400
23167.24 23052.67 23163.04
9887.91
9790.58
747.96
740.29
747.86
8.24
26564.02 26406.16 26561.57
686.80
680.76
686.78
3.62
0.17
Nasdaq Stock Market
Nasdaq Composite
6605.29
Nasdaq 100
6092.87
0.02
5.44
-0.13
9886.51 -13.16
6558.53
6051.47
6605.07 -19.15
6092.62 -21.74
1.11
0.01
0.03
-0.29
23163.04 17888.28
27.5
17.2
10038.13
7967.02
23.0
9.3
6.7
754.80
625.44
13.6
13.4
10.0
26561.57 21514.15
687.05
521.59
19.9
26.8
14.1
14.2
10.6
11.5
6624.22
6122.61
-0.36
5046.37
4660.46
26.0
26.1
12.2
22.7
25.3
15.8
16.9
Standard & Poor's
500 Index
2562.36
2547.92
2562.10
0.84
0.03
2562.10
2085.18
19.6
14.4
10.7
MidCap 400
SmallCap 600
1823.96
909.02
1808.85
901.99
1823.85
908.54
1.96
-3.04
0.11
1823.85
918.72
1476.68
703.64
19.4
23.5
9.8
8.4
11.3
13.3
Other Indexes
Russell 2000
1502.97
1491.38
1502.04
-3.10
1512.09
1156.89
23.1
10.7
11.5
12381.52 12322.13 12380.32
NYSE Composite
543.25
539.27
NYSE Arca Biotech
4281.61
4217.26
NYSE Arca Pharma
Value Line
542.85
-0.21
0.08
9.30
-0.07
-0.40
4252.48 -20.80 -0.49
560.79
556.76
560.52
4.15
KBW Bank
99.79
98.39
0.16
PHLX§ Gold/Silver
99.60
85.92
85.14
0.46
PHLX§ Oil Service
85.52
135.10
131.99
132.86
1225.12
11.77
1206.34
9.99
1225.05
10.05
PHLX§ Semiconductor
CBOE Volatility
-0.33
0.75
0.16
0.54
-1.63 -1.22
-3.11
-0.02
-0.25
Region/Country Index
Close
6.5
14.5
7.2
5.6
4304.77
2834.14
39.0
38.3
12.1
560.52
463.78
12.8
16.4
4.1
100.76
73.36
35.5
8.5
14.2
96.72
73.03
-2.2
8.4
3.5
192.66
117.79
-19.5
802.88 50.0
9.19 -26.9
Volume, Advancers, Decliners
Latest
% chg
Net chg
2.71
–0.01
–0.09
DJ Americas
618.08
Sao Paulo Bovespa 76283.16
S&P/TSX Comp
15818.00
S&P/BMV IPC
50000.25
Santiago IPSA
4157.68
0.28
–307.93
35.84
61.27
–30.89
389.11
390.16
4066.02
5368.29
12990.10
1435.56
22133.21
544.56
1138.64
10197.50
587.46
9233.52
7523.04
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5896.10
Shanghai Composite 3370.17
Hang Seng
28159.09
S&P BSE Sensex
32389.96
Nikkei Stock Avg
21448.52
Straits Times
3334.91
Kospi
2473.06
Weighted
10760.29
Company
Volume
(000)
Symbol
Last
Net chg
7,669.8 255.84
0.05
iShares MSCI Emg Markets EEM
7,545.5
46.18
0.09
VISA Cl A
3,514.9 107.02
…
SPDR S&P 500
SPY
V
After Hours
% chg
High
0.20
46.19
46.00
unch. 107.25 107.02
2,968.0
23.46
0.02
0.09
23.53
23.37
Rice Energy
RICE
2,953.3
27.87
…
unch.
27.90
27.72
PayPal Holdings
PYPL
2,762.6
69.93
2.68
3.99
71.50
66.55
Apple
AAPL
2,577.1 155.98
…
unch. 156.39 155.25
HP
HPQ
2,450.2
21.96
…
unch.
22.05
21.77
Percentage gainers…
Axovant Sciences
AXON
Skechers USA Cl A
SKX
Atlassian Cl A
TEAM
CAI International
CAI
uniQure
QURE
15.4
22.92
22.92
5.80
1,978.5
29.54
5.51
22.93
29.79
24.03
35.8
45.07
4.82
11.98
45.40
40.02
9.9
33.45
2.07
6.60
33.45
31.30
40.2
15.90
0.74
4.88
16.01
14.07
17.12 295.15
...And losers
NCR Corp
NCR
132.3
33.09
-3.96
-10.69
37.05
31.40
Diebold Nixdorf
DBD
13.9
20.80
-1.25
-5.67
22.05
20.20
-27.7 -17.9
Celgene
CELG
788.4 128.60
-7.36
-5.41 136.16 125.67
35.1 28.7
-28.4 -23.0
Axon Enterprise
AAXN
McDermott International MDR
19.2
23.32
-1.30
-5.28
24.63
23.25
46.3
6.00
-0.29
-4.61
6.32
6.00
–2.45
–2.16
–9.23
–15.52
–52.93
–11.83
–221.48
–3.12
–9.15
–75.90
–0.40
–76.09
–19.83
YTD
% chg
0.09
17.0
17.6
21.1
–0.003
–0.03
0.04
–0.40
14.4
26.7
3.5
9.5
29.0
0.23
0.12
–0.74
7.7
11.4
12.7
10.4
13.1
–2.4
15.1
12.7
–1.2
9.0
9.9
12.3
5.3
–0.63
–0.55
–0.23
–0.29
–0.41
–0.82
–0.99
–0.57
–0.80
–0.74
–0.07
–0.82
–0.26
5.60
–0.34
–11.62
–552.67 –1.92
–194.39 –0.60
85.47
5.88
–0.40
–9.85
40.01
0.10
0.40
0.18
0.37
4.1
8.6
28.0
21.6
12.2
15.8
22.0
16.3
Company
Symbol
uniQure
MongoDB
Prana Biotechnology ADR
GRAVITY ADR
Qudian ADR
QURE
Concert Pharmaceuticals
MER Telemanagement
Viking Therapeutics
Infinity Pharmaceuticals
VirnetX Holding
CNCE
Silicom
Real Goods Solar Cl A
Warrior Met Coal
Verso Cl A
Adobe Systems
SILC
High
52-Week
Low
% chg
15.16 5.69
32.07 8.07
3.25 0.64
63.34 10.47
34.90 5.72
60.08
33.63
24.52
19.80
19.60
15.99 4.72 106.5
...
...
...
4.58 1.52
6.9
63.45 4.50 1092.8
35.45 24.00
...
16.50
2.40
2.98
2.40
5.80
2.54
0.36
0.38
0.30
0.70
18.19
17.70
14.62
14.29
13.73
19.11
3.84
3.12
3.84
8.75
67.99 8.17
RGSE
2.35 0.28
HCC
26.69 3.08
VRS
6.76 0.76
ADBE 171.73 18.73
13.66
13.53
13.05
12.67
12.24
MDB
PRAN
GRVY
QD
MTSL
VKTX
INFI
VHC
Symbol
General Electric
SPDR S&P 500
Bank of America
VelocityShares 3x Lg Nat
Micron Technology
GE
iShares MSCI Emg Markets
iPath S&P 500 VIX ST Fut
Apple
ProSharesUltVIXST
Advanced Micro Devices
EEM
SPY
BAC
UGAZ
MU
VXX
AAPL
UVXY
AMD
A consumer rate against its
benchmark over the past year
Home Equity
6.00%
Home equity loan
t
5.00
4.00
t
3.00
2.00
N D J F MAM J J A S O
2016 2017
1.95%
414-258-5880
Cambridge Savings Bank
2.99%
Cambridge, MA
888-418-5626
Thursday
City National Bank of West Virginia
2.99%
Charleston, WV
304-925-6611
Third Federal S&LA
Cleveland, OH
3.24%
888-THIRDFED
Dollar Bank, a Federal Savings Bank
3.74%
Pittsburgh, PA
800-828-5527
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
75.2
-96.0
...
8.2
57.5
Avenue Therapeutics
DarioHealth
Foresight Autonomous ADR
Veritone
Genuine Parts
ATXI
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.36
1.36
Money market, annual yield
0.32
0.32
Five-year CD, annual yield
1.46
1.46
30-year mortgage, fixed†
3.91
3.91
15-year mortgage, fixed†
3.19
3.22
Jumbo mortgages, $424,100-plus† 4.41
4.39
Five-year adj mortgage (ARM)† 3.56
3.43
New-car loan, 48-month
3.06
3.06
HELOC, $30,000
5.23
5.20
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.54
l
2.81
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.36
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.13
-0.10
-0.05
-0.10
0.06
-0.06
-0.08
-0.16
0.77
52-Week
High
Low
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: SIX Financial Information; WSJ Market Data Group; Bankrate.com
FRSX
VERI
GPC
Symbol
43,941
40,627
39,966
35,653
33,540
-8.0
54.0
47.1
40.1
-42.5
46.09
34.39
155.98
15.83
13.95
-0.88
-0.72
-2.37
-1.49
-0.85
46.82 33.94
153.48 34.35
164.94 104.08
416.80 15.78
15.65
6.22
KMG Chemicals
Kennedy-Wilson Holdings
TPG Pace Holdings Cl A
Gabelli Gl Small Mid Cp
PIMCO Dyn Multi Intl
KMG
0
0.75
–10
0.00
–15
30
...
-58.2
69.2
-23.6
-12.2
31.00
59.78
1.85
7.40
14.00
-4.60
-8.21
-0.24
-0.83
-1.50
-12.92
-12.08
-11.45
-10.09
-9.68
35.80 24.25
83.04 52.21
3.00 1.58
15.93 5.28
20.83 13.75
24.5
5.7
-10.5
...
-20.7
4.80
1.98
5.40
34.38
89.71
-0.49
-0.20
-0.52
-3.27
-8.33
-9.26
-9.17
-8.81
-8.69
-8.50
8.58 4.51
4.70 1.69
11.70 4.21
74.92 7.76
100.90 79.86
...
-39.8
...
...
0.2
QURE
FIXD
ESTE
BXC
KW
TPGH
GGZ
MFDX
Volume % chg from Latest Session
(000) 65-day avg Close % chg
870
8,497
492
3,077
1,060
11501
5259
4223
2961
2588
1,263
9,629
200
314
66
1704
1483
1251
1154
1103
52-Week
High
Low
29.07 -0.78
15.16 60.08
50.82 0.06
9.04 -14.23
8.20 1.11
29.37 23.43
15.99 4.72
53.41 49.71
15.71 8.02
11.78 6.36
0.63
1.04
-0.15
0.00
-0.34
61.10 26.33
23.00 17.95
9.85 9.74
13.61 9.84
26.17 25.15
55.56
19.50
9.74
13.33
26.03
U.S.-dollar foreign-exchange rates in late New York trading
10%
–5
...
1.14
0.45
4.50
8.02
Currencies
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
1.50
...
5.89
5.00
13.05
15.71
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Forex Race
WSJ Dollar index
5
52-Week
Low
% chg
Ranked by change from 65-day average*
Company
s
Euro
s Yen
Country/currency
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Americas
Argentina peso
.0573 17.4465
Brazil real
.3157 3.1671
Canada dollar
.8010 1.2485
Chile peso
.001598 625.60
Colombia peso
.0003426 2919.00
Ecuador US dollar
1
1
Mexico peso
.0532 18.8066
Peru new sol
.3091 3.235
Uruguay peso
.03383 29.5600
Venezuela b. fuerte .098861 10.1153
9.9
–2.7
–7.1
–6.6
–2.8
unch
–9.3
–3.5
0.7
1.2
Asia-Pacific
2016 2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.091
2.075
2.237
1.469 –1.578 1.763
2.323
3.012
2.580
5.124
2.840
1.882
2.323
2.998
2.560
5.159
2.810
1.908
2.609
3.390
2.790
6.448
3.120
2.516
1.740
2.654
2.050
4.948
2.170
1.677
1.598
2.219
0.596
7.190
0.401
2.261
807.339
5.398
5.415
6.290
5.279
5.120 5.980
1.567
3.767
2.264
4.441
2.042
2.550
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7879 1.2692
China yuan
.1508 6.6310
Hong Kong dollar
.1282 7.8013
India rupee
.01540 64.925
Indonesia rupiah .0000741 13502
Japan yen
.008886 112.54
Kazakhstan tenge .002989 334.60
Macau pataca
.1248 8.0127
Malaysia ringgit
.2368 4.2230
New Zealand dollar
.7030 1.4225
Pakistan rupee
.00951 105.200
Philippines peso
.0195 51.395
Singapore dollar
.7372 1.3565
South Korea won .0008857 1129.01
Sri Lanka rupee
.0065079 153.66
Taiwan dollar
.03309 30.224
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–8.6
–4.5
0.6
–4.5
–0.2
–3.8
0.3
1.2
–5.9
–1.5
0.8
3.6
–6.3
–6.5
3.5
–6.9
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Country/currency
.03021 33.100 –7.6
.00004401 22723 –0.2
Thailand baht
Vietnam dong
Europe
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
.04608 21.704 –15.5
.1592 6.2799 –11.2
1.1853 .8437 –11.2
.003851 259.65 –11.8
.009524 105.00 –7.0
.1260 7.9363 –8.2
.2798 3.5735 –14.7
.01746 57.276 –6.5
.1231 8.1261 –10.8
1.0245 .9761 –4.2
.2743 3.6459 3.5
.0377 26.5100 –2.1
1.3159 .7599 –6.2
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6508 .3772 0.02
.0567 17.6500 –2.7
.2865 3.4907 –9.3
3.3163 .3015 –1.3
2.5987 .3848 –0.04
.2649 3.775 3.7
.2666 3.7507 unch
.0741 13.4869 –1.5
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.50 –0.21–0.25 –6.92
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Thursday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
DRIO
DEEF
1461.525
EMBI Global, J.P. Morgan
BCRH
Xtrackers FTSE Dev Xus
uniQure
First Tr TCW Opportun
Earthstone Energy
BlueLinx Holdings
10-yr Treasury, Ryan ALM 1736.404
DJ Corporate
380.302
Aggregate, Barclays Capital 1941.090
High Yield 100, Merrill Lynch 2868.289
Fixed-Rate MBS, Barclays 1985.540
Muni Master, Merrill
523.445
Treasury, Ryan ALM
OVID
32.38 22.83
255.95 208.38
26.59 16.28
52.49
9.49
42.07 16.45
2.25
Close
AUG
23.58 1.99
255.79 0.03
26.58 0.38
10.33 0.98
41.31 -0.82
Corporate Borrowing Rates and Yields
Bond total return index
UAL
High
-45.27
-33.50
-16.53
-16.03
-14.23
ESTE
70.77 34.46
67.80 0.60
27.62 15.10
8.43 3.17
172.15 98.00
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
-4.21
-0.67
-0.61
-1.05
-1.50
IMDZ
70.5
-12.7
-17.6
251.1
46.8
3.00
t
Prime rate
WaterStone Bank, SSB
Wauwatosa, WI
NYSE Arca
5.09
1.33
3.08
5.50
9.04
TRXC
73,370
54,127
53,300
47,092
46,566
3.75%
5.20%
Nasdaq
Total volume*1,811,578,687 195,662,311
Adv. volume* 793,886,190 93,624,508
Decl. volume* 990,969,517 98,782,434
Issues traded
3,047
1,281
Advances
1,242
556
Declines
1,656
692
Unchanged
149
33
New highs
76
57
New lows
46
13
Closing tick
101
90
Closing Arms†
0.94
0.78
Block trades*
6,876
1,123
Latest Session
Close Net chg % chg
OPTT
BHE
Volume % chg from Latest Session
(000) 65-day avg Close % chg
notes and bonds
Bankrate.com avg†:
RMBL
Benchmark Electronics
United Continental Hldgs
Auryn Resources
Ovid Therapeutics
Blue Cap Reinsurance
* Volumes of 100,000 shares or more are rounded to the nearest thousand
t
Selected rates
RumbleON Cl B
Ocean Power Techs
TransEnterix
Immune Design
Earthstone Energy
76.1
-30.3
159.1
71.4
73.1
s
U.S. consumer rates
Symbol
Volume Movers
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Company
7.11
1.31
0.88
0.84
1.70
Most Active Stocks
Company
Total volume* 704,801,614 9,832,753
Adv. volume* 361,719,813 3,394,954
Decl. volume* 324,273,372 6,059,323
Issues traded
3,064
323
Advances
1,477
129
Declines
1,432
175
Unchanged
155
19
New highs
123
…
New lows
36
12
Closing tick
247
28
Closing Arms†
0.94
1.43
Block trades*
6,102
84
Percentage Losers
Latest Session
Close Net chg % chg
CREDIT MARKETS & CURRENCIES
WSJ
.COM
Low
0.02 255.92 255.23
VanEck Vectors Gold Miner GDX
Sources: SIX Financial Information; WSJ Market Data Group
Interest rate
NYSE NYSE Amer.
Most-active issues in late trading
Percentage Gainers...
2963.11
383.37
259.10
The Global Dow
DJ Global Index
DJ Global ex U.S.
Americas
Brazil
Canada
Mexico
Chile
12.0
455.65
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
16.8
545.78
1228.16
22.51
-0.20
Philadelphia Stock Exchange
12380.32 10289.35
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
595.11
-0.16
-0.03
600.13
527.06
184.07
51.29
2.873
1286.90
0.08
-0.75
0.019
7.00
0.04 195.14
54.45
-1.44
3.93
0.67
0.55 1346.00
166.50
42.53
2.56
1127.80
% Chg
9.94
YTD
% chg
4.91
-2.49 -4.38
1.71 -4.52
-8.53 -22.85
1.68 11.90
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B8 | Friday, October 20, 2017
COMMODITIES
Futures Contracts
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1505
3.1560
3.1500
3.1530 –0.0105
Oct
Dec
3.1755
3.1865
3.1380
3.1675 –0.0105
Gold (CMX)-100 troy oz.; $ per troy oz.
1286.40 1286.40
1285.10 1286.90
7.00
Oct
Dec
1282.80 1292.80
1277.60 1290.00
7.00
Feb'18
1287.00 1295.90
1282.00 1294.20
7.00
April
1291.50 1300.30
1287.80 1298.00
6.80
June
1293.30 1303.50
1290.00 1301.90
6.70
Dec
1306.30 1314.50
1306.30 1314.10
6.60
Palladium (NYM) - 50 troy oz.; $ per troy oz.
985.00
985.00 s
985.00
953.90 –0.15
Oct
Dec
953.10
962.35
943.10
952.80 –0.15
March'18 945.00 951.05
935.35
944.20 –0.20
June
936.90
936.90
936.90
939.10
2.20
Platinum (NYM)-50 troy oz.; $ per troy oz.
918.60
918.60
918.60
923.20
1.30
Oct
Jan'18
923.70
931.50
920.00
925.90
1.30
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.990
17.220
16.990
17.201 0.258
Oct
Dec
17.015
17.315
16.930
17.255 0.258
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
52.05
52.17
51.07
51.29 –0.75
Nov
Dec
52.26
52.39
51.28
51.51 –0.75
Jan'18
52.45
52.58
51.49
51.73 –0.72
March
52.65
52.75
51.74
51.97 –0.67
June
52.61
52.61
51.68
51.94 –0.62
Dec
51.90
51.90
51.12
51.31 –0.55
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8038
1.8159
1.7685
1.7767 –.0261
Nov
Dec
1.8050
1.8171
1.7694
1.7778 –.0259
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.6502
1.6588
1.6255
1.6447 .0018
Nov
Dec
1.6253
1.6320
1.5995
1.6154 –.0036
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.868
2.910
t
2.773
2.873
.019
Nov
Dec
3.081
3.111
t
3.012
3.086
.021
Jan'18
3.205
3.239
3.150
3.218
.024
Feb
3.216
3.247
3.158
3.227
.024
March
3.179
3.207
3.119
3.188
.024
April
2.950
2.971
2.921
2.968
.022
Contract
High hilo
Low
Settle
Open
interest
Chg
Corn (CBT)-5,000 bu.; cents per bu.
348.75
351.50
348.50
349.00
Dec
March'18 362.50 365.00
362.25
362.75
Oats (CBT)-5,000 bu.; cents per bu.
266.50
272.50
266.00
269.50
Dec
March'18 269.75 273.75
269.75
272.25
Soybeans (CBT)-5,000 bu.; cents per bu.
983.75
989.00
983.00
986.50
Nov
Jan'18
994.25
999.50
994.00
997.00
Soybean Meal (CBT)-100 tons; $ per ton.
321.60
323.50
321.00
321.40
Dec
Jan'18
323.60
325.70
323.40
323.70
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
33.43
33.87
33.28
33.83
Dec
Jan'18
33.58
34.02
33.43
33.99
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1186.50 1199.50
1185.50 1193.00
Nov
Jan'18
1219.00 1226.50
1217.00 1224.00
Wheat (CBT)-5,000 bu.; cents per bu.
430.50
436.25
429.50
432.75
Dec
March'18 449.50 454.50
448.50
451.25
Wheat (KC)-5,000 bu.; cents per bu.
428.75
434.25
427.25
429.25
Dec
March'18 446.50 452.25
445.75
447.25
Wheat (MPLS)-5,000 bu.; cents per bu.
Dec
610.50
618.75
610.50
615.75
March'18 624.25 632.25
624.25
629.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
152.825 153.500
151.750 153.150
Oct
Jan'18
150.225 151.625
149.375 151.200
Cattle-Live (CME)-40,000 lbs.; cents per lb.
111.475 112.350
110.600 111.200
Oct
Dec
116.650 117.400
115.550 116.150
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
64.000
64.650
63.600
64.250
Dec
Feb'18
68.125
68.650
67.925
68.475
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
422.10
428.40
421.30
426.70
Nov
Jan'18
411.20
417.90
409.50
416.20
Milk (CME)-200,000 lbs., cents per lb.
16.62
16.65
16.61
16.61
Oct
Nov
16.20
16.31
16.06
16.09
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,061
2,152
2,059
2,145
Dec
March'18
2,068
2,141
2,062
2,133
1,205
177,452
474
401,312
65,547
14,512
12,789
10,858
1
31,150
3,222
85
9
68,876
222
144,079
71,971
588,144
296,245
237,176
199,834
258,485
64,090
110,689
71,876
136,980
121,052
234,275
196,158
79,204
168,434
122,694
Contract
High hilo
Low
Open
Settle
Chg
Open
interest
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Agriculture Futures
Open
interest
WSJ.com/commodities
.50 778,466
.50 293,876
1.75
2.00
4,812
1,692
2.25 241,246
2.00 239,903
–.40 147,451
–.40 87,672
.42 167,727
.42 100,008
–1.50
–.50
4,782
4,811
2.75 262,175
2.00 102,242
1.25 141,789
1.00 82,374
5.75
5.25
36,530
24,598
.625
1.075
4,125
20,977
–.275
5,925
–.500 145,208
.500 117,994
.475 47,050
3.00
4.10
3,524
2,924
–.19
–.25
3,889
4,522
78 101,412
59 88,897
124.75
128.70
128.05
131.75
124.50
128.30
126.85
130.60
2.55 119,706
2.50 59,392
March
May
14.05
14.13
14.35
14.40
14.05
14.13
14.13
14.22
.05 429,781
.05 125,333
March
May
27.00
27.00
27.00
27.00
27.00
27.00
27.00
27.00
.01
…
Dec
March'18
67.82
67.44
67.88
67.50
67.26
66.91
67.31
67.01
150.85
150.20
153.60
153.50
149.20
149.40
152.10
152.00
Dec
March'18
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Cotton (ICE-US)-50,000 lbs.; cents per lb.
–.32 121,068
–.32 72,947
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Nov
Jan'18
2,538
1,603
1.80
1.75
2,419
4,986
Contract
High hilo
Low
Open
Dec
.8874
.8927
.8860
.8899
.8025
.8027
.8034
.8035
.8009
.8007
.8009 –.0016
880
.8011 –.0015 172,943
Dec
152-290 154-020
152-290 153-170
16.0 735,393
March'18 151-280 152-260
151-280 152-110
16.0
143
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
125-025 125-160
125-025 125-085
4.0 3,019,989
March'18 125-020 125-030
124-280 124-305
4.0 10,279
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
117-057 117-137
117-055 117-087
2.0 2,979,549
March'18 117-052 117-052
117-052 117-020
2.5
5,421
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-217 107-245
107-215 107-227
1.0 1,715,199
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Oct
98.845
98.848
98.845
98.845
… 232,254
Jan'18
98.640
98.650
98.640
98.650
.005 358,758
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
101.422 101.547
101.234 101.328
.156 29,468
1 Month Libor (CME)-$3,000,000; pts of 100%
Dec
98.5800 98.5825
t 98.5800 98.5800 .0100
2,264
Jan'18
98.5600 98.5625
98.5600 98.5625 .0125
1
Eurodollar (CME)-$1,000,000; pts of 100%
Nov
98.5825 98.5950
98.5825 98.5900 .0075 102,378
Dec
98.4950 98.5050
98.4900 98.4950 .0050 1,900,480
March'18 98.3550 98.3750
98.3500 98.3600 .0100 1,315,925
Dec
98.0550 98.1100
98.0550 98.0800 .0250 1,652,607
Currency Futures
Nov
Thursday, October 19, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Thursday
Thursday
17.0250
12981
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Energy
0.9039
1.0396
2.810
2.760
2.470
2.420
2.570
0.610
2.690
55.500
11.750
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Other metals
LBMA Platinum Price PM
*922.0
Platinum,Engelhard industrial
924.0
Platinum,Engelhard fabricated
1024.0
Palladium,Engelhard industrial
956.0
Palladium,Engelhard fabricated
1056.0
Aluminum, LME, $ per metric ton
*2106.5
Copper,Comex spot
3.1530
Iron Ore, 62% Fe CFR China-s
59.6
Shredded Scrap, US Midwest-s,w
286
Steel, HRC USA, FOB Midwest Mill-s
n.a.
Metals
Fibers and Textiles
Gold, per troy oz
1289.84
1386.58
1286.40
1427.90
*1280.65
*1280.20
1340.25
1353.14
1353.14
1561.79
1266.18
1353.14
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
17.0800
20.4960
17.2350
21.5440
£12.9300
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6150
0.6731
*77.85
61.000
n.a.
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
Grains and Feeds
n.a.
71
3.1350
80.8
467.8
228
86
228
3.0050
375.00
24.00
7.7950
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
Thursday
317.90
9.4500
7.4825
4.1950
3.6125
5.3138
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
Nov
Dec
1.3217
1.3224
1.3230
1.3250
1.3150
1.3150
1.3166 –.0046
856
1.3178 –.0046 178,908
Dec
March'18
1.0231
1.0321
1.0307
1.0373
1.0226
1.0298
1.0278
1.0349
.7840
.7836
.7835
.7833
.7834
.7865
.7861
.7857
.7856
.7853
.7851
.7846
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
.7841
.7842
.7836
.7855
.7858
.7870
Nov
Dec
Jan'18
Feb
March
June
.7881
.7879
.7876
.7874 s
.7871
.7870
.05244
.05276
Dec
March'18 .05190 .05197
Euro (CME)-€125,000; $ per €
1.1808
1.1872
Nov
Dec
1.1828
1.1895
176.42
166.77
0.8444
2.3550
164.75
172.00
75.75
2359
1.2307
1.4178
1.0550
15.05
n.a.
62.40
n.a.
0.9016
110.00
162.00
35.5400
0.2500
n.a.
0.3246
0.2600
0.3200
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
October 19, 2017
Week
Latest ago
U.S. consumer price index
0.53
0.19
246.819
252.941
All items
Core
2.2
1.7
International rates
Latest
Week
ago
Prime rates
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
U.S.
Canada
Japan
Policy Rates
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
1.38
0.15
U.S. government rates
Discount
1.1700
1.3125
1.0500
1.1600
1.1700
1.75
1.75
1.00
1.2000
1.3125
1.1600
1.1700
1.1900
0.3500
0.5625
0.2400
0.3000
0.3200
Treasury bill auction
4 weeks
13 weeks
26 weeks
.05239
.05168
.05246 –.00013 184,632
.05171 –.00013
599
1.1782
1.1804
1.1844
1.1866
ETF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCIBrazilCap
iShMSCI EAFE
iShMSCIEAFESC
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
AMLP
XLY
XLP
DGP
DZZ
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
10.92
91.14
54.03
24.76
5.49
67.64
26.33
96.76
83.79
72.18
110.06
105.25
123.30
65.00
55.53
61.97
257.53
181.88
74.62
58.63
109.62
95.03
71.92
51.36
12.39
121.39
88.61
116.42
106.92
70.05
42.50
69.43
62.33
46.09
43.63
57.39
335.11
111.25
128.05
142.46
119.99
180.35
149.29
125.01
151.84
200.25
85.85
206.61
146.63
0.74 –13.3
... 12.0
4.5
–0.53
0.61 23.1
–1.21 –19.9
–0.31 –10.2
0.08 13.2
0.12 11.7
0.61 21.5
0.28 16.0
1.7
0.05
0.3
0.02
0.6
0.09
–0.24 21.2
–0.77 30.8
–0.40 22.7
0.04 14.5
0.10 10.0
8.5
–0.21
0.02 14.3
1.4
0.07
7.3
0.14
–0.24 17.5
0.47 13.6
0.65 11.8
3.6
0.15
2.4
0.01
5.6
0.11
0.5
0.01
–0.09 18.4
–0.47 27.5
–0.16 20.3
–0.57 25.1
–0.88 31.6
–0.09 26.1
–0.23 17.5
–0.26 26.3
2.8
0.03
–0.06 22.1
0.08 14.5
7.1
0.14
–0.21 17.2
–0.15 10.7
5.1
–0.10
0.03 14.2
0.09 12.0
6.7
0.12
0.05 13.4
–0.07 20.4
0.995 1.015 1.300 0.240
1.090 1.085 1.180 0.340
1.240 1.220 1.240 0.470
Closing Chg YTD
Symbol Price (%) (%)
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
.0025
5,990
.0025 430,754
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
23113
23100
23124 s
23111 s
22951
22941
23114
23102
2559.60
2561.20 s
2542.90
2560.50
S&P 500 Index (CME)-$250 x index
Dec
Mini S&P 500 (CME)-$50 x index
2560.00 2561.50 s
2542.50 2560.50
Dec
March'18 2560.50 2561.50 s 2543.25 2561.00
Mini S&P Midcap 400 (CME)-$100 x index
1821.80 1824.90
1807.80 1823.30
Dec
Mini Nasdaq 100 (CME)-$20 x index
6121.3
6121.8 s
6051.3
6097.8
Dec
March'18 6130.0 6133.8 s
6064.5
6110.3
Mini Russell 2000 (ICE-US)-$100 x index
1506.20 1507.50
1491.80 1503.10
Dec
March'18 1495.00 1506.60
1493.10 1503.60
Mini Russell 1000 (ICE-US)-$100 x index
1414.30 1418.90
1411.20 1418.90
Dec
U.S. Dollar Index (ICE-US)-$1,000 x index
93.29
93.43
92.91
93.12
Dec
March'18
92.93
93.05
92.67
92.84
… 157,109
2
1,428
0.40
53,940
0.50 3,066,930
0.50 31,524
1.70
92,329
–21.5 278,878
–21.3
1,114
–3.30
–3.30
64,263
64
–.90
287
–.11
–.10
44,674
1,857
Source: SIX Financial Information
2,889
YTD total
return (%)
Yield (%)
Latest Low High
Index
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
3.3 U.S. Aggregate
2.580 2.050 2.790
U.S. Corporate Indexes Bloomberg Barclays
1985.54
2.3
Mortgage-Backed
1952.69
1.7
Ginnie Mae (GNMA) 2.790 2.060 3.090
2.840 2.170 3.120
3.140 2.870 3.520
1164.43
2.4
Fannie mae (FNMA) 2.860 2.220 3.120
4.0 Intermediate
2.680 2.300 3.010
1793.28
2.5
Freddie Mac (FHLMC) 2.870 2.230 3.130
3847.01
9.4 Long term
4.130 4.110 4.710
523.45
567.90
4.2 Double-A-rated
2.610 2.240 2.870
366.32
3.430 3.220 3.870
410.82
395.75
5.6
2780.58
2622.95
U.S. Corporate
6.3
718.00
Triple-B-rated
High Yield Bonds Merrill Lynch
7.5
417.61
High Yield Constrained 5.427 5.399 6.858
542.83
5.124 4.948 6.448
752.59
Global High Yield Constrained 4.960 4.960 6.450
370.11
Europe High Yield Constrained 2.139 2.124 3.814
709.96
6.9
High Yield 100
379.18
7.7
6.7
306.22
4.9 Muni Master
1.882 1.677 2.516
7-12 year
1.909 1.674 2.618
6.5
12-22 year
2.317 2.114 3.047
6.6
22-plus year
2.817 2.567 3.622
5.5
Global Government J.P. Morgan†
10.300 9.584 13.189
8.6 Triple-C-rated
417.72
2868.29
1.1
Global Government 1.440 1.010 1.560
-0.1
Canada
2.070 1.370 2.190
0.3
EMU§
1.116 0.673 1.363
0.5
France
0.850 0.400 1.210
509.44
-1.0
Germany
0.440 0.050 0.620
1640.06
2.1
U.S Agency
1.950 1.330 1.960
287.21
-0.3
Japan
0.430 0.170 0.460
1466.47
1.4
10-20 years
1.790 1.140 1.800
561.99
-0.8
Netherlands
0.580 0.160 0.760
20-plus years
2.920 2.630 3.460
920.42
U.K.
1.580 1.340 1.790
2.790 2.410 3.090
807.34
7.6
3362.50
4.8 Yankee
2457.14
0.8
9.2 Emerging Markets ** 5.398 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
109.31
38.50
113.67
84.34
106.48
125.31
115.69
101.79
148.31
46.70
23.21
37.29
122.39
33.94
61.93
61.12
231.65
331.59
255.79
93.31
60.69
54.82
23.44
156.89
129.08
96.55
44.01
44.63
58.55
53.59
134.99
155.58
82.84
84.66
88.11
117.51
149.19
107.00
84.13
234.99
79.71
80.06
142.81
81.89
54.76
55.69
131.71
71.95
101.76
65.02
56.09
0.22
0.13
0.13
0.06
0.10
0.18
0.05
0.01
–0.37
0.34
–0.17
0.05
0.59
–0.24
0.02
0.02
0.08
0.10
0.03
0.05
–0.30
1.05
0.47
–0.33
0.06
0.36
–0.18
–0.73
–0.31
–0.30
–0.16
0.49
0.28
0.09
0.11
0.05
0.11
0.07
–0.30
0.05
0.04
0.08
–0.08
0.05
0.02
–0.41
0.02
–0.12
0.25
–0.76
–0.57
7.8
3.5
0.4
–0.1
1.6
5.2
18.8
0.5
25.2
12.3
–0.6
2.3
11.7
22.6
14.3
14.8
17.3
9.9
14.4
9.1
25.5
12.9
12.0
29.1
6.7
13.3
20.4
24.7
22.1
21.3
21.1
22.7
9.3
1.9
2.8
14.8
13.3
10.1
1.9
14.5
0.3
0.9
10.7
1.4
0.9
21.4
14.2
18.0
9.4
13.3
13.2
Week
ago
Latest
52-Week
high
low
0.100
3.00
3.00
2.25
Commercial paper (AA financial)
1.26
1.29
1.30
0.62
1.23889
1.36261
1.55069
1.83456
0.52400
0.87567
1.24267
1.55622
Libor
1.23888
1.36250
1.55069
1.82789
One month
Three month
Six month
One year
1.23889
1.35917
1.53156
1.80844
Euro Libor
-0.405
-0.377
-0.313
-0.220
One month
Three month
Six month
One year
-0.401
-0.376
-0.310
-0.225
-0.376
-0.319
-0.212
-0.071
-0.405
-0.381
-0.317
-0.230
Euro interbank offered rate (Euribor)
-0.373
-0.329
-0.274
-0.183
One month
Three month
Six month
One year
Latest
-0.372
-0.329
-0.274
-0.181
Value
Traded
-0.366
-0.311
-0.210
-0.069
-0.375
-0.332
-0.275
-0.183
52-Week
High
Low
DTCC GCF Repo Index
1.174
1.154
31.070 1.366 0.244
92.980 1.506 0.257
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Oct
Treasury Nov
Treasury Dec
98.870 -0.005 4901 1.130
98.860 -0.010 5505 1.140
98.720 unch. 1995 1.280
Weekly survey
Latest
Week ago Year ago
Freddie Mac
3.88
3.19
3.17
3.91
3.21
3.16
3.52
2.79
2.85
Notes on data:
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 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 rates as
of 5:30 p.m. ET. Futures on the DTCC GCF Repo
Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor
Statistics; DTCC; SIX Financial Information;
General Electric Capital Corp.; Tullett Prebon
Information, Ltd.
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.571
2.344
1.405
2.248
0.799
1.745
1.942 s
2.772 s
l
1.904
2.008
1.721
38.3
33.3
92.2
l
2.735
2.824
2.307
45.2
39.1
56.2
France 2 -0.520 t
10 0.683 s
l
-0.505
-0.475
l
0.681
0.727
Germany 2 -0.729 t
10 0.397 t
l
-0.723
-0.681
l
0.401
0.455
Italy 2 -0.161 t
10 2.028 t
l
-0.140
l
Japan 2 -0.137 t
10 0.066 t
l
l
0.070
0.031
Spain 2 -0.295 t
10 1.623 s
l
-0.285
-0.320
l
1.607
1.556
1.114
0.412 t
1.282 t
l
0.441
0.418
0.215
l
1.315
1.332
0.984
10
0.100
Year ago
l
Australia 2
0.050
Month ago
l
2.750
0.500
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.559 t
10 2.320 t
2.750
2.750
3.00
30-year fixed
15-year fixed
Five-year ARM
1.375
2.250
2.050
Call money
Treasury
MBS
Country/
Coupon (%) Maturity, in years
0.000
3.441 3.441 3.865 2.960
3.463 3.465 3.899 2.990
30 days
60 days
90 days
Largest 100 exchange-traded funds, latest session
ETF
Total
return
close
2.750
Other short-term rates
1.1700
1.3125
1.0500
1.1600
1.1700
.0017
.0015
549
.0015 131,900
.0015
249
.0015
413
.0015
674
.0014
242
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
0.000
Fannie Mae
Federal funds
Effective rate
High
Low
Bid
Offer
—52-WEEK—
High Low
30-year mortgage yields
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Thursday, October 19, 2017
Closing Chg YTD
Symbol Price (%) (%)
Week
Latest ago
Secondary market
1.06
1.20
1.75
52-Week
High
Low
—52-WEEK—
High Low
Overnight repurchase
U.S.
.8885
56,950
168
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Chg From (%)
Aug. '17 Sept. '16
.8847
U.S Agency Bloomberg Barclays
Fats and Oils
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Sept. index
level
.8913
.0042
.0043
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
1941.09
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 10/18
Source: WSJ Market Data Group
Inflation
.8860
.0018 257,194
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Mexican Peso (CME)-MXN 500,000; $ per MXN
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Open
interest
Chg
Nov
Dec
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Cash Prices | WSJ.com/commodities
Settle
1.750
U.K. 2
4.250
10
-0.626 -207.9
0.310
-163.7
-207.7
-142.5
-166.3
-143.6
-0.668 -228.8
0.031 -192.3
-229.4
-146.7
-194.3
-171.5
-0.105
-0.073
-172.0
-171.1
-87.2
2.044
2.060
1.383
-29.2
-30.0
-36.2
-0.131
-0.141
-0.269
-169.6
-170.2
-106.8
-0.055 -225.4
-227.4
-180.0
-0.213
-185.4
-185.6
-101.2
-69.7
-73.7
-63.1
-114.7
-113.0
-58.4
-103.8
-102.9
-76.1
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Spread*, in basis points
One-day change
Issuer
Symbol Coupon (%)
Royal Bank of Scotland
Microsoft
AT&T
Regency Energy Partners
RBS
MSFT
T
ETP
7.500 Aug. 10, ’49
2.125 Nov. 15, ’22
4.900 Aug. 14, ’37
5.875 March 1, ’22
207 –18
13
–17
188 –10
–9
100
Kellogg
Mead Johnson Nutrition
Williams Partners
Occidental Petroleum
K
RB
WPZ
OXY
2.650
Dec. 1, ’23
3.000 Nov. 15, ’20
4.300 March 4, ’24
4.100 Feb. 15, ’47
77
39
90
101
Maturity
Current
Last week
–9
–8
–7
–6
Stock Performance
Close ($)
% chg
262
n.a.
199
109
7.45
77.91
35.69
…
0.27
0.39
–0.06
…
n.a.
42
91
107
61.70
...
38.80
64.84
–0.15
...
0.57
0.32
…And spreads that widened the most
Pitney Bowes
Abbott Laboratories*
Royal Bank of Scotland
General Electric
PBI
ABT
RBS
GE
4.625 March 15, ’24
2.000 March 15, ’20
8.625 Aug. 15, ’49
2.200
Jan. 9, ’20
320
37
223
26
18
16
348
42
248
18
13.81
56.00
7.45
23.58
0.66
0.41
0.27
1.99
Bed Bath & Beyond
Wells Fargo
JPMorgan Chase
Anheuser–Busch Inbev Finance
BBBY
WFC
JPM
ABIBB
4.915
4.600
7.900
2.625
289
33
–95
57
11
10
9
8
n.a.
39
–79
53
21.20
53.75
98.11
...
0.33
0.64
0.12
...
Aug. 1, ’34
April 1, ’21
April 30, ’49
Jan. 17, ’23
13
12
High-yield issues with the biggest price increases…
Issuer
Symbol
Coupon (%)
Millicom International Cellular
Windstream Services
Rite Aid
Chs/Community Health Systems
MIICF
WIN
RAD
CYH
5.125
7.500
7.700
7.125
Comstock Resources
Ferrellgas Partners
Tenet Healthcare
CenturyLink
CRK
FGP
THC
CTL
Maturity
Bond Price as % of face value
Current
One-day change
Jan. 15, ’28
June 1, ’22
Feb. 15, ’27
July 15, ’20
106.650
77.938
85.000
88.813
10.000 March 15, ’20
8.625 June 15, ’20
6.750 June 15, ’23
7.600 Sept. 15, ’39
101.750
90.500
95.219
93.500
5.15
3.64
2.25
1.81
1.75
1.25
1.22
1.00
Last week
Stock Performance
Close ($)
% chg
100.980
76.000
80.250
87.250
...
1.90
1.83
…
...
–5.47
–1.08
…
99.375
n.a.
94.000
94.497
4.40
4.82
13.35
18.49
–3.08
–0.82
2.93
–0.86
110.469
94.375
102.500
103.500
...
…
16.87
57.85
...
…
–4.96
3.12
n.a.
99.995
96.500
84.000
...
...
3.84
5.30
...
...
1.86
–1.49
…And with the biggest price decreases
Altice Financing S.A.
Seagate HDD Cayman*
Sally Holdings
LifePoint Health
ALTICE
STX
SBH
LPNT
7.500
4.875
5.625
5.375
May 15, ’26
June 1, ’27
Dec. 1, ’25
May 1, ’24
107.250
94.625
100.438
102.480
LSC Communications
Bombardier
Chesapeake Energy
Ensco
LSCCOM
BBDBCN
CHK
ESV
8.750 Oct. 15, ’23
7.500 March 15, ’25
8.000 June 15, ’27
5.200 March 15, ’25
103.500
106.375
97.000
84.500
–3.13
–2.33
–1.06
–1.02
–1.00
–0.88
–0.88
–0.75
*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.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | B9
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Thursday, October 19, 2017
Stock
Net
Sym Close Chg
NYSE
ABB
ABB 25.37 0.31
AES
AES 11.29 0.16
Aflac
AFL 84.45 0.69
AGCO
AGCO 71.74 -0.01
AT&T
T
35.69 -0.02
AbbottLabs ABT 56.00 0.23
s AbbVie
ABBV 96.48 0.44
Accenture ACN 138.62 1.20
AcuityBrands AYI 160.94 -1.23
Adient
ADNT 84.98 -0.47
AdvanceAuto AAP 86.92 -0.89
AdvSemiEngg ASX 6.23 -0.07
Aegon
AEG 5.90 0.08
AerCap
AER 52.26 -0.07
Aetna
AET 157.64 0.21
AffiliatedMgrs AMG 195.72 0.26
AgilentTechs A
66.88 0.44
AgnicoEagle AEM 44.66 -0.16
Agrium
AGU 107.77 0.04
AirProducts APD 152.86 -0.34
AlaskaAir ALK 78.83 -1.60
Albemarle ALB 139.49 -0.17
Alcoa
AA 46.54 -1.21
AlexandriaRealEst ARE 123.36 0.19
Alibaba
BABA 177.93 -1.68
Alleghany Y
560.92 0.49
Allegion
ALLE 87.74 0.14
t Allergan
AGN 189.27 2.12
AllianceData ADS 232.80 4.42
AllianceBernstein AB 25.10 -0.10
s AlliantEnergy LNT 43.85 0.47
AllisonTransm ALSN 38.99 0.78
Allstate
ALL 92.73 1.48
AllyFinancial ALLY 24.52 0.04
AlticeUSA ATUS 25.52 0.87
Altria
MO 64.37 -0.44
AlumofChina ACH 21.36 -0.59
Ambev
ABEV 6.82
...
s Ameren
AEE 61.56 0.55
AmericaMovil AMX 18.66 0.42
AmericaMovil A AMOV 18.38 0.30
AmCampus ACC 43.77 -0.10
AEP
AEP 73.83 0.82
AmericanExpress AXP 91.90 -0.18
AmericanFin AFG 105.57 1.15
AIG
AIG 65.07 1.63
AmerTowerREIT AMT 138.39 0.91
s AmerWaterWorks AWK 87.24 1.02
Amerigas APU 44.91
...
Ameriprise AMP 152.45 -0.29
AmerisourceBrgn ABC 82.20 1.71
s Ametek
AME 68.40 0.48
Amphenol APH 86.10 -0.52
AnadarkoPetrol APC 48.67 -0.10
Andeavor ANDV 104.95 0.63
AB InBev BUD 125.94 0.14
AnnalyCap NLY 12.37 0.06
AnteroResources AR 19.59 -0.13
Anthem
ANTM 193.20 1.41
s Aon
AON 150.82 1.22
Apache
APA 42.15 -0.50
ApartmtInv AIV 44.13 -0.06
ApolloGlobalMgmt APO 31.86 0.13
s AquaAmerica WTR 36.03 0.73
Aramark
ARMK 42.83 -0.13
ArcelorMittal MT 29.34 0.34
ArcherDaniels ADM 43.31
...
Arconic
ARNC 26.68 -0.21
AristaNetworks ANET 190.13 0.19
ArrowElec ARW 82.68 -0.79
AstraZeneca AZN 34.71 0.06
Athene
ATH 54.41 0.08
AtmosEnergy ATO 87.08 0.65
Autohome ATHM 60.06 -0.04
Autoliv
ALV 124.50 -0.84
AutoZone AZO 595.27-11.04
Avalonbay AVB 180.60 0.52
Avangrid
AGR 48.37 0.19
AveryDennison AVY 98.79 -1.72
AxaltaCoating AXTA 29.20 0.44
BB&T
BBT 46.74 0.20
BCE
BCE 47.35 -0.03
BHPBilliton BHP 41.56 0.06
BHPBilliton BBL 36.72 -0.27
BP
BP 38.75 0.03
BRF
BRFS 13.98 -0.33
BT Group BT 18.22 0.03
BWX Tech BWXT 59.18 -0.15
BakerHughes BHGE 33.15 -0.65
Ball
BLL 41.94 -0.17
BancoBilbaoViz BBVA 8.53 -0.04
BancodeChile BCH 92.85 -0.85
BancoMacro BMA 123.91 -0.70
BcoSantChile BSAC 30.82 -0.62
BancoSantander SAN 6.58 -0.03
BanColombia CIB 43.88 -0.31
s BankofAmerica BAC 26.58 0.10
s BankofMontreal BMO 78.83 0.17
Stock
Net
Sym Close Chg
BankNY Mellon BK 52.85 -1.61
s BkNovaScotia BNS 64.82 0.11
Barclays
BCS 10.14 -0.01
s Bard CR
BCR 327.30 0.30
BarrickGold ABX 16.10 -0.07
BaxterIntl BAX 63.47 -0.37
s BectonDickinson BDX 209.36 1.64
Berkley
WRB 69.44 0.67
BerkHathwy A BRK.A 280815-475.00
BerkHathwy B BRK.B 187.21 -0.64
s BerryGlobal BERY 59.20 -0.30
BestBuy
BBY 55.46
...
Bio-RadLab A BIO 219.04 0.83
BlackKnight BKI 45.95 0.30
BlackBerry BB 11.23 -0.02
BlackRock BLK 476.79 -0.71
BlackstoneGroup BX 34.01 0.52
BoardwalkPipe BWP 14.62 0.19
Boeing
BA 259.04 -1.00
BorgWarner BWA 52.05 -0.34
BostonProperties BXP 123.63 -3.04
s BostonScientific BSX 29.57 0.05
Braskem
BAK 29.26 0.04
Bristol-Myers BMY 64.67 0.97
BritishAmTob BTI 63.47 -0.55
BrixmorProp BRX 18.68 -0.25
s BroadridgeFinl BR 83.67 0.06
BrookfieldMgt BAM 42.88 -0.09
BrookfieldInfr BIP 43.60 -0.71
Brown&Brown BRO 49.00 0.06
Brown-Forman A BF.A 56.44 -0.13
Brown-Forman B BF.B 55.76
...
t BuckeyePtrs BPL 53.81 0.56
Bunge
BG 70.83 0.39
BurlingtonStores BURL 89.03 -0.29
CBD Pao
CBD 25.10 -0.10
s CBRE Group CBG 40.01 0.05
CBS A
CBS.A 58.68 1.18
CBS B
CBS 57.83 0.87
CF Industries CF 36.33 -0.50
CGI Group GIB 53.60 0.02
CIT Group CIT 49.28 0.29
CMS Energy CMS 48.19 0.38
CNA Fin
CNA 51.04 0.66
CNOOC
CEO 127.61 -2.18
CPFLEnergia CPL 17.22
...
CRH
CRH 36.27 0.46
CVS Health CVS 74.63 0.53
CabotOil
COG 25.48 -0.14
CamdenProperty CPT 92.57 0.07
CampbellSoup CPB 45.37 -0.27
CIBC
CM 90.34 -0.20
CanNtlRlwy CNI 82.21 1.12
CanNaturalRes CNQ 33.09 -0.12
CanPacRlwy CP 177.00 -0.10
Canon
CAJ 35.85 -0.03
CapitalOne COF 87.48 0.82
CardinalHealth CAH 66.15 1.45
Carlisle
CSL 102.27 1.10
CarMax
KMX 74.84 -0.42
Carnival
CCL 65.79 -1.67
Carnival
CUK 65.95 -1.33
Caterpillar CAT 131.55 0.26
Celanese A CE 105.29 1.26
Cemex
CX
8.09 0.06
CenovusEnergy CVE 10.01 0.22
Centene
CNC 94.70 1.16
CenterPointEner CNP 29.75 0.17
CentraisElBras EBR 6.45 -0.06
CenturyLink CTL 18.49 -0.16
Chemours CC 56.17 0.05
Chevron
CVX 118.20 0.05
ChinaEastrnAir CEA 24.91 -0.27
ChinaLifeIns LFC 15.67 -0.22
ChinaMobile CHL 50.17 -0.44
ChinaPetrol SNP 73.18 -1.40
ChinaSoAirlines ZNH 34.67 -0.26
ChinaTelecom CHA 51.73 -0.72
ChinaUnicom CHU 14.45 -0.02
Chipotle
CMG 325.27 7.03
s Chubb
CB 153.98 2.87
ChunghwaTelecom CHT 33.74 -0.21
Church&Dwight CHD 47.28 -0.13
Cigna
CI 188.22 -1.14
CimarexEnergy XEC 115.32 0.29
Citigroup
C
72.88 -0.24
CitizensFin CFG 37.43 0.25
Clorox
CLX 130.12 -0.84
Coach
COH 39.47
...
Coca-Cola KO 46.59 0.19
Coca-Cola Euro CCE 41.94 -0.01
Coca-Cola Femsa KOF 70.92 -0.01
Colgate-Palmolive CL 73.14 -1.30
ColonyNorthStar CLNS 12.50 -0.03
Comerica
CMA 77.48 0.91
SABESP
SBS 9.59 -0.23
ConagraBrands CAG 33.76 -0.34
ConchoRscs CXO 132.26 -0.80
ConocoPhillips COP 49.71
...
ConEd
ED 84.84 1.06
ConstBrands A STZ 211.98 0.19
Stock
Net
Sym Close Chg
ConstBrands B STZ.B212.54
ContinentalRscs CLR 36.77
Cooper
COO 236.08
Corning
GLW 30.06
Coty
COTY 15.83
Credicorp
BAP 206.63
CreditSuisse CS 15.92
CrestwoodEquity CEQP 23.90
CrownCastle CCI 103.22
s CrownHoldings CCK 60.68
Cullen/Frost CFR 98.00
Cummins
CMI 175.31
DTE Energy DTE 112.14
DXC Tech DXC 91.03
s Danaher
DHR 90.10
Darden
DRI 81.97
DaVita
DVA 58.70
Deere
DE 128.52
s DellTechnologies DVMT 81.64
DelphiAutomotive DLPH 97.64
DeltaAir
DAL 52.27
DeutscheBank DB 16.87
DevonEnergy DVN 34.95
Diageo
DEO 135.96
DigitalRealty DLR 123.88
DiscoverFinSvcs DFS 65.66
Disney
DIS 99.01
DolbyLab
DLB 59.54
s DollarGeneral DG 82.91
DominionEner D
79.95
Domino's
DPZ 186.12
Donaldson DCI 46.91
DouglasEmmett DEI 40.52
Dover
DOV 89.50
DowDuPont DWDP 70.89
DrPepperSnap DPS 89.31
DrReddy'sLab RDY 36.31
DukeEnergy DUK 87.85
DukeRealty DRE 28.88
ENI
E
32.60
EOG Rscs EOG 95.76
EQT
EQT 63.06
EQT Midstream EQM 72.43
EastmanChem EMN 88.79
Eaton
ETN 78.02
EatonVance EV 51.51
Ecolab
ECL 131.74
Ecopetrol
EC 10.01
EdisonInt
EIX 79.47
EdwardsLife EW 112.03
EmersonElectric EMR 65.16
EnbridgeEnPtrs EEP 15.20
Enbridge
ENB 40.33
Encana
ECA 11.52
EnelAmericas ENIA 10.79
EnelChile
ENIC 5.99
EnelGenChile EOCC 27.22
EnergyTrfrEquity ETE 17.49
EnergyTransfer ETP 17.83
s Entergy
ETR 85.36
EnterpriseProd EPD 25.33
Equifax
EFX 110.51
EquityLife ELS 87.77
EquityResdntl EQR 66.06
EssexProp ESS 259.94
EsteeLauder EL 109.70
EverestRe RE 237.25
EversourceEner ES 62.06
s Exelon
EXC 39.77
ExtraSpaceSt EXR 81.70
ExxonMobil XOM 82.74
FMC
FMC 94.12
FactSet
FDS 182.26
FederalRealty FRT 127.23
FedEx
FDX 223.97
Ferrari
RACE 115.91
FiatChrysler FCAU 16.53
FibriaCelulose FBR 15.79
s FidelityNatlFin FNF 35.59
FNFV Group FNFV 17.90
FidelityNtlInfo FIS 95.15
58.com
WUBA 67.48
FirstData
FDC 18.45
FirstRepBank FRC 97.45
FirstEnergy FE 32.30
FleetCorTech FLT 164.04
Flowserve FLS 44.49
Fluor
FLR 43.06
FomentoEconMex FMX 91.40
FordMotor F
12.23
ForestCIty A FCE.A 25.03
Fortis
FTS 37.49
Fortive
FTV 71.10
FortBrandsHome FBHS 65.58
Franco-Nevada FNV 79.72
FranklinRscs BEN 44.87
Freeport-McMoRan FCX 14.81
FreseniusMed FMS 48.95
GGP
GGP 21.26
s Gallagher AJG 62.64
Gap
GPS 26.61
0.04
0.22
0.30
0.14
0.07
-1.23
0.01
0.25
2.26
0.86
0.77
0.29
1.59
-0.54
4.05
0.01
0.98
-0.20
0.29
-0.09
-0.59
-0.02
-0.27
0.38
0.03
0.27
0.76
-0.63
0.11
1.07
-1.67
-0.06
-0.20
-4.07
0.11
0.16
-0.13
0.81
-0.26
-0.13
-0.90
0.12
-0.76
0.73
0.05
-0.02
0.04
-0.03
1.62
0.83
-0.35
0.15
-0.13
-0.27
0.03
0.02
0.03
0.04
0.07
0.70
-0.15
-0.11
0.48
-0.66
-1.27
-0.28
2.25
0.62
0.15
-0.22
-0.02
0.06
2.11
-1.30
1.67
-0.65
-0.98
0.08
0.57
...
0.34
-1.88
0.21
0.68
0.31
-1.92
-0.13
0.51
-0.60
0.04
0.01
0.24
-0.52
0.23
0.20
0.07
-0.02
0.46
0.08
0.51
-0.05
New Highs and Lows | WSJ.com/newhighs
Thursday, October 19, 2017
Stock
Chubb
NYSE highs - 123 Cohen&Steers
AbbVie
ABBV
AlliantEnergy LNT
AllianzGIEqtyConv NIE
Ameren
AEE
AmerStWater AWR
AmerWaterWorks AWK
Ametek
AME
AnnalyCapPfdF NLYpF
Aon
AON
AquaAmerica WTR
ArcosDorados ARCO
BankofAmWtA BAC.WS.A
BankofAmerica BAC
BankofMontreal BMO
BkNovaScotia BNS
Bard CR
BCR
BectonDickinson BDX
BerryGlobal
BERY
BostonBeer
SAM
BostonScientific BSX
BoydGaming
BYD
BroadridgeFinl BR
CAI Intl
CAI
CBRE Group
CBG
CNO Financial CNO
CalAtlantic
CAA
CalWtrSvc
CWT
CedarRealty6.5%PfC CDRpC
CharlesRiverLabs CRL
ChesapeakeUtil CPK
96.62
43.89
20.87
61.57
55.86
87.25
68.40
26.56
150.86
36.06
10.50
14.49
26.59
78.86
65.07
327.97
209.50
60.00
181.10
29.60
28.70
83.85
32.40
40.01
24.78
38.69
43.45
25.20
115.60
82.15
0.5
1.1
0.3
0.9
1.5
1.2
0.7
0.6
0.8
2.1
2.5
0.4
0.4
0.2
0.2
0.1
0.8
-0.5
-0.3
0.2
-0.7
0.1
-0.2
0.1
0.4
0.8
1.0
0.5
0.6
-0.5
52-Wk %
Sym Hi/Lo Chg Stock
CB
CNS
ColonyNorthPfdJ CLNSpJ
CerveceriasUnid CCU
CrownHoldings CCK
Danaher
DHR
DellTechnologies DVMT
DollarGeneral DG
EmbotellAndinaB AKO.B
Entergy
ETR
EssentGroup ESNT
Exelon
EXC
FidelityNatlFin FNF
FT EnhEquity FFA
FT MtgIncome FMY
Forestar
FOR
Gallagher
AJG
GoldmanSachsPfN GSpN
GreatPlainsEner GXP
HFF
HF
HannonArmstrong HASI
HawaiianElec HE
Hexcel
HXL
HiltonGrandVac HGV
DR Horton
DHI
HoulihanLokey HLI
Invesco
IVZ
Insperity
NSP
InterXion
INXN
InvescoMtg
IVR
IronMountain IRM
J&J
JNJ
KBR
KBR
154.05
45.50
25.34
28.67
61.61
91.64
81.75
83.28
31.07
85.43
44.50
39.88
35.69
15.29
14.47
18.35
62.64
27.73
32.25
44.01
25.00
35.53
61.88
40.42
42.59
41.48
36.88
94.85
53.17
17.97
41.16
142.98
18.97
1.9
4.0
...
1.0
1.4
4.7
0.4
0.1
-1.1
0.8
1.1
0.4
1.6
0.1
1.0
0.3
0.8
0.3
0.4
0.5
0.2
1.0
4.2
0.7
2.5
0.1
0.2
0.2
1.8
0.6
0.4
1.0
1.3
52-Wk %
Sym Hi/Lo Chg
Kemper
KMPR 60.15
56.93
Lennar A
LEN
4.89
MFS HiYldMuni CMU
13.83
MGIC Investment MTG
20.85
ManulifeFin
MFC
57.14
MarathonPetrol MPC
MaxarTech
MAXR 62.79
McDonalds
MCD 166.95
MohawkIndustries MHK 262.30
MonmouthRealEst MNR 16.95
39.80
NACCO Inds
NC
12.50
NL Industries NL
NVR
NVR 3155.00
56.64
Nelnet
NNI
NextEraEnergyUn NEEpQ 69.23
NextEraEnergyUn NEEpR 57.12
NextEraEnergy NEE 153.95
NovoNordisk
50.95
NVO
25.61
NuvPfd&Income JPI
26.96
NuvPfd2022Term JPT
NuvS&P500DynOver SPXX 16.76
OaktreeSpecNts24 OSLE 25.15
OnAssignment ASGN 56.89
PPG Ind
PPG 115.36
PA REIT PfdD PEIpD 25.45
PennyMacPfdB PMTpB 25.39
68.18
PrincipalFin
PFG
PublicStoragePfE PSApE 24.98
PulteGroup
27.86
PHM
PureStorage
PSTG 16.57
4.89
PutnmMstIntm PIM
102.09
QuintilesIMS
Q
RELX
RENX 22.01
0.9
0.9
3.2
2.1
0.2
0.6
-0.1
0.4
0.4
0.7
1.6
4.2
7.8
10.2
0.9
1.0
0.9
1.1
0.6
0.7
1.7
-0.2
0.2
1.3
0.2
0.5
0.4
0.3
1.6
0.7
1.2
0.9
0.2
RadianGroup RDN
ReinsuranceGrp RGA
RoyalBkCanada RY
RoyalBkScotland RBS
SAP
SAP
SJW Group
SJW
ScorpioTankNt20 SBNA
SherwinWilliams SHW
StellusCap5.75Nt22 SCA
SunstoneHotelInv SHO
TRI Pointe
TPH
TelecomArgentina TEO
Toll Bros
TOL
Torchmark
TMK
TorontoDomBk TD
Travelers
TRV
TwoHarborsPfdB TWOpB
Unitil
UTL
UnitedRentals URI
UrstadtBiddlePfdH UBPpH
VMware
VMW
VoyaAsiaPacHiDiv IAE
WABCO
WBC
WasteConnections WCN
Westwood
WHG
XeniaHotels
XHR
ZayoGroup
ZAYO
AdvantageOil AAV
AllerganPfdA AGNpA
Allergan
AGN
BuckeyePtrs
BPL
Cabco JCP PFH PFH
ClearbridgeEngyMLP EMO
ClearwaterPaper CLW
Volaris
VLRS
Corts JCPen JBS JBN
DeutscheMuniIncmTr KTF
Duff&PhelpsSelEn DSE
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s
apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. rRedemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes
x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete
price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not
tracked. NS-Fund didn’t exist at start of period.
American Century Inv
43.90
Ultra
American Funds Cl A
31.44
AmcpA p
41.15
AMutlA p
BalA p
27.23
12.97
BondA p
63.17
CapIBA p
51.94
CapWGrA
56.74
EupacA p
FdInvA p
62.52
50.40
GwthA p
10.50
HI TrA p
41.03
ICAA p
23.49
IncoA p
N PerA p
44.52
46.62
NEcoA p
NwWrldA
65.96
56.05
SmCpA p
13.06
TxExA p
WshA p
45.04
Baird Funds
3.9 US SmCpVal
4.3 US TgdVal
AggBdInst
-0.17 25.9 CorBdInst
+0.01
+0.01
-0.03
+0.06
...
+0.01
...
-0.12
-0.20
-0.06
-0.09
...
...
+0.02
-0.06
-0.24
-0.30
-0.23
...
+0.08
+0.01 11.5 Dodge & Cox
17.2
13.4
11.4
3.4
12.3
20.3
28.4
17.0
19.9
6.8
14.6
10.8
26.0
29.7
28.2
21.9
5.1
14.2
10.92
11.28
BlackRock Funds A
20.27
GlblAlloc p
BlackRock Funds Inst
22.88
EqtyDivd
GlblAlloc
20.40
7.87
HiYldBd
StratIncOpptyIns 9.98
Bridge Builder Trust
NA
CoreBond
Dimensional Fds
5GlbFxdInc
11.03
30.19
EmgMktVa
EmMktCorEq 22.32
IntlCoreEq
14.17
19.80
IntlVal
21.41
IntSmCo
IntSmVa
23.38
21.87
US CoreEq1
US CoreEq2 20.78
US Small
36.39
USLgVa
... 12.1
+0.01 11.7
... 7.8
... 4.3
...
NA
+0.01
-0.07
-0.11
-0.02
-0.01
-0.10
-0.10
+0.01
+0.01
-0.05
2.3
27.8
30.5
23.7
20.9
25.2
23.6
14.8
12.9
8.3
Balanced
GblStock
Income
Intl Stk
Stock
5.35
663.02
182.80
52.53
14.21
11.31
42.20
10.55
12.53
12.18
5.98
Fund
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each. NAV is net asset value. Percentage performance figures are total returns,
assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t
reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous
trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return
annualized.
Fund
20.55
145.55
80.98
7.49
113.64
65.77
24.96
387.72
25.58
16.99
15.32
32.57
43.96
82.55
57.79
133.17
26.57
52.74
147.60
26.88
117.40
11.13
155.63
71.04
69.39
22.20
36.77
1.8
0.6
0.6
0.3
1.5
1.9
-0.6
0.9
0.4
0.2
1.9
1.4
2.0
0.5
0.5
2.4
-0.2
0.8
0.1
...
0.7
-1.2
4.0
0.4
0.8
0.9
1.7
NYSE lows - 36
Data provided by
Thursday, October 19, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
0.97
-0.15
1.25
0.46
-0.22
0.23
0.02
-8.33
0.03
-0.01
0.09
-0.06
-0.21
0.11
-2.04
-0.84
-4.16
0.13
-0.08
-0.08
0.11
0.85
2.34
-0.11
0.29
0.24
-0.30
-0.35
-0.06
0.07
0.77
0.95
-0.16
0.57
0.45
0.18
-0.70
-0.82
-0.84
0.04
0.04
-0.21
-0.02
0.18
-0.72
1.02
-0.02
-0.22
0.67
1.38
-0.08
0.12
-0.05
0.07
0.17
0.09
0.11
-0.28
0.12
-0.14
-0.22
-1.35
-0.09
1.37
0.84
-0.41
-0.43
-0.06
0.17
-0.12
-0.10
0.12
0.13
0.18
-0.20
1.36
0.58
-0.09
-0.26
-0.25
...
0.14
-0.01
0.97
-0.09
-0.33
-0.10
-0.65
-1.75
-0.11
0.07
0.08
0.23
0.13
0.55
0.22
-0.37
0.03
-0.12
0.04
-0.40
1.77
3.33
-0.26
0.45
-0.25
-0.51
0.29
0.12
0.48
0.75
-2.43
0.02
-0.15
-0.10
0.63
0.45
-0.12
-0.28
0.50
-0.01
1.27
0.29
0.52
Net YTD
NAV Chg % Ret
38.99 -0.05 4.7
25.02
... 5.0
38.61 +0.09 11.6
109.03 +0.03
14.00 -0.05
13.84 +0.01
46.78 -0.22
201.34 +0.03
DoubleLine Funds
TotRetBdI
10.71
...
Edgewood Growth Instituti
EdgewoodGrInst 29.31 -0.06
Federated Instl
6.50 +0.01
StraValDivIS
Fidelity
89.65 +0.03
500IdxInst
500IdxInstPrem 89.65 +0.04
500IdxPrem 89.65 +0.04
ExtMktIdxPrem r 62.51 -0.05
IntlIdxPrem r 43.19 -0.03
...
SAIUSLgCpIndxFd 13.74
Stock
9.0
17.5
4.1
22.8
12.4
3.7
32.0
13.0
16.2
16.3
16.2
13.9
22.4
16.2
0.9
1.0
1.1
1.1
-0.7
0.2
...
-1.7
-0.8
...
-0.2
Net
Sym Close Chg
LyondellBasell LYB 99.39 1.13
M&T Bank MTB 162.26 1.64
MGM Resorts MGM 30.48 0.04
MPLX
MPLX 34.33 0.24
MSCI
MSCI 122.00 -0.59
Macerich
MAC 57.12 0.04
t MacquarieInfr MIC 71.26 -0.46
Macy's
M
20.19 0.04
MagellanMid MMP 68.33 -0.19
MagnaIntl MGA 54.71 -0.34
Manpower MAN 122.69 -0.07
s ManulifeFin MFC 20.81 0.04
MarathonOil MRO 13.74 -0.03
s MarathonPetrol MPC 57.10 0.35
Markel
MKL 1063.35 1.43
Marsh&McLennan MMC 84.29 0.74
MartinMarietta MLM 209.50 6.15
Masco
MAS 39.06 0.40
Mastercard MA 144.98 -1.21
McCormick MKC 99.37 0.23
McCormickVtg MKC.V 99.40 0.55
s McDonalds MCD 166.50 0.73
McKesson MCK 149.96 3.75
Medtronic MDT 78.48 -0.11
Merck
MRK 63.75 0.24
MetLife
MET 52.99 0.19
MettlerToledo MTD 661.19 5.53
MichaelKors KORS 48.84 -0.29
MicroFocus MFGP 32.43 -0.02
MidAmApt MAA 105.09 -0.73
MitsubishiUFJ MTU 6.48
...
MizuhoFin MFG 3.57 -0.01
MobileTeleSys MBT 10.50 0.02
s MohawkIndustries MHK 261.04 1.04
MolsonCoors A TAP.A 84.80 -0.99
MolsonCoors B TAP 83.58 0.98
Monsanto MON 122.03 -0.05
Moody's
MCO 144.19 -1.01
MorganStanley MS 49.79 -0.36
Mosaic
MOS 21.10 -0.06
MotorolaSolutions MSI 89.65 0.56
NRG Energy NRG 25.54 -0.41
NTTDoCoMo DCM 23.56 -0.03
s NVR
NVR 3127.53227.45
NationalGrid NGG 62.45 -0.18
NatlOilwell NOV 34.08 -0.44
NatlRetailProp NNN 41.99 -0.38
NewOrientalEduc EDU 90.50 -0.73
NY CmntyBcp NYCB 12.76 0.03
t NewellBrands NWL 40.59 -0.62
NewfieldExpln NFX 29.27 -0.38
NewmontMining NEM 37.84 -0.02
s NextEraEnergy NEE 153.87 1.33
NielsenHoldings NLSN 41.31 -0.38
Nike
NKE 52.69 0.39
NiSource
NI
26.76 0.33
NobleEnergy NBL 27.37 -0.51
Nokia
NOK 5.82 -0.04
NomuraHoldings NMR 5.77 -0.03
Nordstrom JWN 41.73 -0.28
NorfolkSouthern NSC 130.24 -0.28
NorthropGrumman NOC 292.65 0.65
Novartis
NVS 86.16 0.12
s NovoNordisk NVO 50.68 0.55
Nucor
NUE 58.62 1.34
NuSTAREnergy NS 35.78 0.51
OGE Energy OGE 36.92 0.05
ONEOK
OKE 55.81 0.44
OccidentalPetrol OXY 64.84 0.21
Och-Ziff
OZM 3.37
...
Olin
OLN 35.10 0.85
OmegaHealthcare OHI 32.11 -0.08
Omnicom OMC 72.96 -2.49
Oracle
ORCL 49.35 -0.23
Orange
ORAN 16.16 -0.13
OrbitalATK OA 132.98 0.11
Orix
IX
85.13 -0.69
Oshkosh
OSK 87.03 0.16
OwensCorning OC 79.24 0.25
PG&E
PCG 57.00 0.56
PLDT
PHI 33.50 0.25
PNC Fin
PNC 135.30 0.56
POSCO
PKX 75.03 1.19
s PPG Ind
PPG 114.31 1.43
PPL
PPL 37.81 0.29
PVH
PVH 125.74 1.38
PackagingCpAm PKG 116.60 0.18
PaloAltoNtwks PANW 149.33 -0.36
ParkHotels PK 28.97 0.23
ParkerHannifin PH 182.01 0.35
ParsleyEnergy PE 26.11 -0.49
Pearson
PSO 9.02 0.01
PembinaPipeline PBA 33.33 -0.13
Pentair
PNR 70.71 0.55
PepsiCo
PEP 112.67 0.72
PerkinElmer PKI 71.32 1.20
Perrigo
PRGO 87.53 -1.02
PetroChina PTR 64.06 -0.86
PetroleoBrasil PBR 10.39 -0.06
PetroleoBrasilA PBR.A 10.15 -0.02
Pfizer
PFE 36.24 0.41
PhilipMorris PM 108.15 -4.36
Phillips66 PSX 90.39 0.15
PinnacleFoods PF 56.57 -0.37
PinnacleWest PNW 88.57 1.23
PioneerNatRscs PXD 142.98 -2.11
PlainsAllAmPipe PAA 20.64 0.31
PlainsGP
PAGP 21.25 0.09
PolarisIndustries PII 105.36 -0.05
Potash
POT 19.25 0.01
Praxair
PX 140.41 0.51
s PrincipalFin PFG 68.17 0.27
Procter&Gamble PG 91.59 -0.49
Progressive PGR 48.69 0.60
Prologis
PLD 64.55 -0.76
PrudentialFin PRU 109.60 0.71
Prudential PUK 48.51 0.01
PublicServiceEnt PEG 48.94 0.28
PublicStorage PSA 215.21 0.54
s PulteGroup PHM 27.78 0.45
Qudian
QD 34.90 5.72
QuestDiag DGX 93.23 1.18
s QuintilesIMS Q
101.82 0.89
s RELX
RENX 21.97 0.05
52-Wk %
Sym Hi/Lo Chg Stock
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Net
Sym Close Chg
Gartner
IT 123.24
Gazit-Globe GZT 9.64
GeneralDynamics GD 211.64
GeneralElec GE 23.58
GeneralMills GIS 52.03
GeneralMotors GM 45.35
Genpact
G
29.74
GenuineParts GPC 89.71
Gerdau
GGB 3.65
Gildan
GIL 31.38
GlaxoSmithKline GSK 41.10
GlobalPayments GPN 96.81
GoDaddy
GDDY 44.20
Goldcorp
GG 13.26
GoldmanSachs GS 239.99
Graco
GGG 125.96
Grainger
GWW 204.65
s GreatPlainsEner GXP 32.20
GpoAvalAcciones AVAL 9.00
GpFinSantandMex BSMX 8.90
GrupoTelevisa TV 23.66
GuidewireSoftware GWRE 77.39
HCA Healthcare HCA 79.79
HCP
HCP 26.36
HDFC Bank HDB 95.56
HP
HPQ 21.96
HSBC
HSBC 49.19
Halliburton HAL 43.42
Hanesbrands HBI 23.15
HarleyDavidson HOG 48.09
Harris
HRS 135.61
HartfordFinl HIG 56.47
HealthcareAmer HTA 29.73
Heico
HEI 90.26
Heico A
HEI.A 75.30
Herbalife
HLF 75.51
Hershey
HSY 109.35
Hess
HES 45.05
HewlettPackard HPE 13.86
Hilton
HLT 71.10
HollyFrontier HFC 36.13
HomeDepot HD 163.24
HondaMotor HMC 30.44
Honeywell HON 143.62
t HormelFoods HRL 30.62
s DR Horton DHI 42.53
HostHotels HST 19.83
HuanengPower HNP 25.05
Hubbell
HUBB 120.83
Humana
HUM 242.69
HuntingtonIngalls HII 234.81
Huntsman HUN 28.98
HyattHotels H
61.86
ICICI Bank IBN 8.01
ING Groep ING 18.72
s Invesco
IVZ 36.88
IDEX
IEX 124.64
IllinoisToolWks ITW 153.48
Infosys
INFY 14.70
Ingersoll-Rand IR
91.08
Ingredion
INGR 123.16
ICE
ICE 66.85
InterContinentl IHG 54.23
IBM
IBM 160.90
IntlFlavors IFF 148.12
IntlPaper
IP
57.61
Interpublic IPG 20.80
InvitationHomes INVH 22.74
s IronMountain IRM 40.96
IsraelChemicals ICL
4.23
ItauUnibanco ITUB 13.85
JPMorganChase JPM 98.11
JacobsEngineering JEC 58.30
JamesHardie JHX 14.85
JanusHenderson JHG 35.08
s J&J
JNJ 142.04
JohnsonControls JCI 41.24
JonesLangLaSalle JLL 131.66
JuniperNetworks JNPR 25.82
KAR Auction KAR 48.01
KB Fin
KB 50.29
KKR
KKR 20.36
KT
KT 14.50
KSCitySouthern KSU 103.78
Kellogg
K
61.70
KeyCorp
KEY 18.25
KeysightTechs KEYS 42.75
KilroyRealty KRC 72.30
KimberlyClark KMB 115.55
KimcoRealty KIM 19.07
KinderMorgan KMI 18.65
Knight-Swift KNX 39.35
Kohl's
KSS 43.86
KoninklijkePhil PHG 41.28
KoreaElcPwr KEP 18.05
Kroger
KR 20.89
Kyocera
KYO 65.27
LATAMAirlines LTM 13.57
L Brands
LB 42.00
LG Display LPL 12.74
LINE
LN 36.27
L3 Tech
LLL 187.57
LabCpAm LH 151.32
LambWeston LW 50.30
LasVegasSands LVS 62.34
Lazard
LAZ 45.74
Lear
LEA 172.54
Leggett&Platt LEG 48.43
Leidos
LDOS 61.52
s Lennar A
LEN 56.75
Lennar B
LEN.B 48.14
LennoxIntl LII 179.39
LeucadiaNatl LUK 25.79
Level3Comms LVLT 52.78
LibertyProperty LPT 41.31
EliLilly
LLY 86.36
LincolnNational LNC 75.00
LionsGate A LGF.A 30.17
LionsGate B LGF.B 29.16
LiveNationEnt LYV 43.10
LloydsBanking LYG 3.59
LockheedMartin LMT 316.84
Loews
L
48.98
Lowe's
LOW 81.27
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
52-Wk %
Sym Hi/Lo Chg Stock
Stock
RELX
RELX 22.72
RPM
RPM 51.92
RalphLauren RL 86.38
RaymondJames RJF 85.72
Raytheon RTN 186.95
RealtyIncome O
56.21
RedHat
RHT 121.60
RegencyCtrs REG 64.38
RegionsFin RF 14.97
s ReinsuranceGrp RGA 145.44
RepublicServices RSG 63.65
ResMed
RMD 78.79
RestaurantBrands QSR 67.60
RiceEnergy RICE 27.87
RioTinto
RIO 48.13
RobertHalf RHI 50.92
Rockwell
ROK 186.44
RockwellCollins COL 134.57
RogersComm B RCI 52.88
Rollins
ROL 47.66
RoperTech ROP 251.96
s RoyalBkCanada RY 80.74
s RoyalBkScotland RBS 7.45
RoyalCaribbean RCL 121.12
RoyalDutchA RDS.A 61.03
RoyalDutchB RDS.B 62.73
s SAP
SAP 113.40
S&P Global SPGI 159.44
SINOPECShanghai SHI 61.68
SK Telecom SKM 25.77
SLGreenRealty SLG 98.66
Salesforce.com CRM 97.19
Sanofi
SNY 50.02
Sasol
SSL 28.92
Scana
SCG 48.65
Schlumberger SLB 64.50
SchwabC
SCHW 43.27
ScottsMiracleGro SMG 98.33
SealedAir SEE 44.16
SemicondctrMfg SMI 6.36
SempraEnergy SRE 114.09
SensataTech ST 49.60
ServiceCorp SCI 34.29
ServiceMaster SERV 46.91
ServiceNow NOW 120.81
ShawComm B SJR 21.85
s SherwinWilliams SHW 387.57
ShinhanFin SHG 45.24
Shopify
SHOP 98.25
SimonProperty SPG 165.52
SmithAO
AOS 60.80
Smith&Nephew SNN 37.92
Smucker
SJM 104.00
Snap
SNAP 15.25
SnapOn
SNA 156.19
SOQUIMICH SQM 59.29
Sony
SNE 37.44
Southern
SO 52.00
SoCopper SCCO 43.29
SouthwestAirlines LUV 58.63
SpectraEnerPtrs SEP 43.46
SpectrumBrands SPB 110.04
SpiritAeroSys SPR 78.77
Sprint
S
7.07
Square
SQ 32.12
StanleyBlackDck SWK 157.16
StarwoodProp STWD 21.95
StateStreet STT 97.48
Statoil
STO 20.26
Steris
STE 90.60
STMicroelec STM 19.75
Stryker
SYK 149.32
SumitomoMits SMFG 7.87
SunCommunities SUI 89.61
SunLifeFinancial SLF 39.91
SuncorEnergy SU 33.61
SunTrustBanks STI 59.11
SynchronyFin SYF 31.71
Syngenta SYT 92.04
Sysco
SYY 54.74
TAL Education TAL 33.92
TE Connectivity TEL 87.44
Telus
TU 35.99
Ternium
TX 31.12
TIM Part
TSU 18.98
TJX
TJX 71.41
TableauSoftware DATA 78.62
TaiwanSemi TSM 41.07
TargaResources TRGP 44.49
Target
TGT 60.43
TataMotors TTM 32.95
6.20
66.54
12.80
23.60
30.43
0.45
11.02
39.11
71.10
40.44
11.10
25.02
16.27
10.80
7.60
0.19
16.36
1.67
15.51
18.57
9.74
25.03
26.36
11.38
38.70
...
-1.3
-0.2
1.8
-2.3
-6.2
-4.7
0.3
-0.6
-1.5
-0.6
-0.2
-1.6
-3.9
-2.2
2.7
-5.0
-2.9
-8.1
-3.0
-0.2
-1.5
-0.5
-2.7
0.4
NYSE Arca highs - 57
AIPoweredEquity AIEQ 25.50 0.2
ALPSIntlDivDogs IDOG 28.47 ...
ALPSSectorDivDogs SDOG 44.84 0.3
ColumbiaSustUSEqu ESGS 30.39 ...
DirexHlthcrBull3 CURE 48.80 1.9
DirexHmbldrBull3 NAIL 63.80 4.9
FidelityLowVol FDLO 29.26 0.3
30.24 0.2
FT FinlsAlpDx FXO
30.34 0.3
FT ValDivFd
FVD
FlexMrnUSMktFtrTlt TILT 107.46 -0.1
FlexShQualDivDyn QDYN 42.24 0.1
32.74 0.2
GuggDJIA Div DJD
83.81 0.6
HealthCareSelSect XLV
Net YTD
NAV Chg % Ret Fund
Fidelity Advisor I
32.87
Fidelity Freedom
16.66
FF2020
FF2025
14.41
18.04
FF2030
Freedom2020 K 16.66
Freedom2025 K 14.41
Freedom2030 K 18.05
Freedom2035 K 15.13
Freedom2040 K 10.63
Fidelity Invest
23.59
Balanc
BluCh
85.52
124.11
Contra
124.10
ContraK
10.29
CpInc r
DivIntl
41.27
178.97
GroCo
178.92
GrowCoK
7.94
InvGB
InvGrBd
11.30
LowP r
52.30
LowPriStkK r 52.26
103.96
MagIn
106.26
OTC
Puritn
22.89
SrsEmrgMkt 21.24
SrsGroCoRetail 17.57
16.21
SrsIntlGrw
SrsIntlVal
10.85
TotalBond
10.69
Fidelity Selects
229.19
Biotech r
First Eagle Funds
GlbA
60.20
FPA Funds
t TechnipFMC FTI 25.10
TeckRscsB TECK 22.29
s TelecomArgentina TEO 32.14
TelecomItalia TI
9.09
TelecomItalia A TI.A 7.25
TeledyneTech TDY 163.59
Teleflex
TFX 241.99
TelefonicaBras VIV 16.04
Telefonica TEF 10.40
TelekmIndonesia TLK 31.31
t Tenaris
TS 26.37
Teradyne
TER 39.06
TevaPharm TEVA 14.93
Textron
TXT 53.10
ThermoFisherSci TMO 192.44
ThomsonReuters TRI 47.87
ThorIndustries THO 130.36
3M
MMM 219.24
Tiffany
TIF 93.60
TimeWarner TWX 102.20
s Toll Bros
TOL 43.96
s Torchmark TMK 82.53
Toro
TTC 62.18
s TorontoDomBk TD 57.63
Total
TOT 54.20
TotalSystem TSS 67.33
ToyotaMotor TM 123.07
TransCanada TRP 49.89
TransDigm TDG 264.50
TransUnion TRU 50.36
s Travelers
TRV 133.17
TurkcellIletism TKC 9.57
TurquoiseHill TRQ 3.22
Twitter
TWTR 17.89
TylerTech TYL 176.24
TysonFoods TSN 71.41
UBS Group UBS 17.31
UDR
UDR 38.52
UGI
UGI 48.34
US Foods USFD 27.40
UltraparPart UGP 24.63
UnderArmour A UAA 16.45
UnderArmour C UA 15.02
Unilever
UN 57.65
Unilever
UL 56.04
UnionPacific UNP 112.01
UnitedContinental UAL 59.78
UnitedMicro UMC 2.58
UPS B
UPS 119.42
s UnitedRentals URI 144.40
US Bancorp USB 53.59
US Steel
X
27.68
UnitedTech UTX 119.49
UnitedHealth UNH 203.25
UniversalHealthB UHS 110.54
UnumGroup UNM 52.28
VEREIT
VER 8.11
VF
VFC 65.35
Visa
V
107.02
VailResorts MTN 222.50
Vale
VALE 10.33
ValeroEnergy VLO 77.63
Vantiv
VNTV 69.11
VarianMed VAR 105.60
Vedanta
VEDL 20.13
VeevaSystems VEEV 59.60
Ventas
VTR 63.02
Verizon
VZ 49.21
VistraEnergy VST 18.83
s VMware
VMW 117.40
VornadoRealty VNO 74.85
VoyaFinancial VOYA 39.85
VulcanMaterials VMC 120.04
s WABCO
WBC155.08
WEC Energy WEC 66.59
W.P.Carey WPC 69.44
Wabtec
WAB 75.66
Wal-Mart WMT 86.40
s WasteConnections WCN 70.78
WasteMgt WM 77.37
Waters
WAT 185.45
Watsco
WSO 159.30
Wayfair
W 67.15
WellCareHealth WCG 177.24
WellsFargo WFC 53.75
Welltower HCN 68.18
WestPharmSvcs WST 92.28
WestarEnergy WR 52.94
t WesternGasEquity WGP 39.43
WesternGasPtrs WES 49.78
WesternUnion WU 19.86
-0.39
0.13
0.45
0.05
...
0.53
1.35
-0.07
-0.12
-0.07
-0.12
-0.22
0.31
-0.47
3.22
0.28
-0.34
0.97
-0.82
0.72
0.85
0.37
0.02
0.30
0.17
0.17
-1.19
0.20
-1.20
-0.20
3.15
0.02
-0.07
-0.13
0.08
-0.14
0.05
-0.03
0.38
0.26
-0.23
0.12
0.04
-3.74
-3.82
1.63
-8.21
-0.06
1.27
0.08
0.32
0.43
0.31
-1.98
2.02
0.09
-0.12
0.28
-0.78
0.70
0.18
0.01
0.15
1.20
-0.23
0.22
-0.29
0.56
0.13
0.80
-2.15
-0.11
3.10
6.01
0.89
-0.24
0.16
0.18
0.27
0.43
4.29
-1.03
0.02
1.20
0.34
-0.13
-0.13
0.38
0.16
-0.23
0.07
Net
Sym Close Chg
Stock
WestlakeChem WLK 84.00
WestpacBanking WBK 26.21
WestRock WRK 59.60
Weyerhaeuser WY 35.18
WheatonPrecMetals WPM 20.65
Whirlpool WHR 177.96
Williams
WMB 29.60
WilliamsPartners WPZ 38.80
Wipro
WIT 5.34
WooriBank WF 46.22
Wyndham WYN 109.30
XPO Logistics XPO 65.75
XcelEnergy XEL 49.25
Xerox
XRX 33.10
Xylem
XYL 63.89
YPF
YPF 22.93
YumBrands YUM 75.82
YumChina YUMC 41.90
ZTO Express ZTO 15.33
s ZayoGroup ZAYO 36.06
ZimmerBiomet ZBH 121.88
Zoetis
ZTS 65.58
0.90
0.15
...
-0.05
0.65
1.17
-0.09
0.22
-0.04
1.05
-0.03
0.99
0.52
0.26
0.21
0.11
-0.20
-0.56
-0.08
0.59
1.19
0.02
NASDAQ
AGNC Invt AGNC 21.79 -0.02
Ansys
ANSS 129.89 0.33
ASML
ASML 176.02 4.29
Abiomed
ABMD 172.21 -0.74
ActivisionBliz ATVI 61.99 0.49
s AdobeSystems ADBE 171.73 18.73
AkamaiTech AKAM 51.65 0.65
AlexionPharm ALXN 140.46 0.22
s AlignTech ALGN 196.85 2.62
Alkermes ALKS 50.56 -0.53
AlnylamPharm ALNY 115.63 -1.92
Alphabet A GOOGL 1001.84-10.90
Alphabet C GOOG 984.45 -8.36
Altaba
AABA 67.45 -0.34
Amazon.com AMZN 986.61-10.39
Amdocs
DOX 66.03 0.22
Amerco
UHAL 373.13 3.71
AmericanAirlines AAL 51.51 -0.52
Amgen
AMGN 184.12 -2.16
AnalogDevices ADI 88.80 -0.20
Apple
AAPL 155.98 -3.78
AppliedMaterials AMAT 55.33 -0.01
s ArchCapital ACGL 101.16 0.86
Atlassian
TEAM 40.25 0.44
Autodesk ADSK 119.29 0.75
ADP
ADP 114.62 0.69
BOK Fin
BOKF 90.11 0.37
Baidu
BIDU 264.52 -4.45
BankofOzarks OZRK 46.09 0.43
Biogen
BIIB 342.42 -2.16
BioMarinPharm BMRN 88.13 -0.49
Bioverativ BIVV 59.73 -0.23
bluebirdbio BLUE 139.45 0.35
BrighthouseFin BHF 61.20 0.49
Broadcom AVGO 244.29 0.29
CA
CA 33.93 0.20
CDK Global CDK 65.24 -0.05
CDW
CDW 68.39 -0.26
CH Robinson CHRW 77.98 0.64
CME Group CME 134.95 -1.42
CSX
CSX 54.06 0.38
CadenceDesign CDNS 41.81 0.02
Carlyle
CG 24.20 -0.25
CboeGlobalMkts CBOE 108.93 -0.66
Celgene
CELG 135.96 -1.21
Cerner
CERN 72.80 0.11
CharterComms CHTR 351.67 -0.40
CheckPointSftw CHKP 117.90 -0.10
ChinaLodging HTHT 132.37 2.32
CincinnatiFin CINF 76.19 0.19
Cintas
CTAS 150.95 -0.21
CiscoSystems CSCO 33.75 0.20
CitrixSystems CTXS 82.74 0.47
Cognex
CGNX 119.63 -2.34
CognizantTech CTSH 74.27 0.33
Coherent
COHR 258.47 -1.41
Comcast A CMCSA 36.90 0.70
CommerceBcshrs CBSH 57.55 0.50
CommScope COMM 31.87 0.07
Copart
CPRT 36.41 -0.02
CoStarGroup CSGP 280.48 -3.27
Costco
COST 158.46 0.91
Ctrip.com
CTRP 49.80 -4.47
DISH Network DISH 49.32 -0.39
DentsplySirona XRAY 60.67 1.17
DiamondbackEner FANG 101.59 -0.60
Net
Sym Close Chg
Stock
DiscoveryComm A DISCA 20.09
DiscoveryComm C DISCK 18.97
DollarTree DLTR 91.41
E*TRADE ETFC 43.69
EastWestBancorp EWBC 59.47
eBay
EBAY 37.29
ElbitSystems ESLT 150.10
ElectronicArts EA 113.07
Equinix
EQIX 470.55
Ericsson
ERIC 5.90
ErieIndemnity A ERIE 123.50
Exelixis
EXEL 27.46
Expedia
EXPE 153.40
ExpeditorsIntl EXPD 58.91
ExpressScripts ESRX 58.75
F5Networks FFIV 117.39
Facebook
FB 174.56
Fastenal
FAST 48.26
FifthThirdBncp FITB 28.28
Fiserv
FISV 127.55
Flex
FLEX 17.71
FlirSystems FLIR 43.25
Fortinet
FTNT 40.22
Gaming&Leisure GLPI 36.81
Garmin
GRMN 55.45
Gentex
GNTX 20.66
GileadSciences GILD 81.59
Goodyear GT 33.60
Grifols
GRFS 21.45
HD Supply HDS 36.24
Hasbro
HAS 96.67
HenrySchein HSIC 83.09
Hologic
HOLX 37.08
JBHunt
JBHT 104.79
HuntingtonBcshs HBAN 13.98
IAC/InterActive IAC 124.14
IdexxLab
IDXX 161.58
IHSMarkit INFO 43.52
INC Research INCR 55.55
IPG Photonics IPGP 200.84
IcahnEnterprises IEP 56.03
Icon
ICLR 114.36
Illumina
ILMN 205.18
Incyte
INCY 114.27
s Intel
INTC 40.09
InteractiveBrkrs IBKR 49.42
Intuit
INTU 146.62
IntuitiveSurgical ISRG 357.46
IonisPharma IONS 63.66
JD.com
JD 39.38
JackHenry JKHY 105.47
JazzPharma JAZZ 145.00
JetBlue
JBLU 20.34
KLA Tencor KLAC 108.05
t KraftHeinz KHC 76.47
LKQ
LKQ 37.23
s LamResearch LRCX 200.98
LamarAdvertising LAMR 68.77
LibertyBroadbandA LBRDA 91.53
LibertyBroadbandC LBRDK 93.05
LibertyGlobal A LBTYA 31.74
LibertyGlobal C LBTYK 30.77
LibertyLiLAC A LILA 21.29
LibertyLiLAC C LILAK 21.31
LibertyQVC A QVCA 23.09
LibertyVenturesA LVNTA 57.20
LibertyFormOne A FWONA 38.16
LibertyFormOne C FWONK 39.98
LibertyBraves A BATRA 24.81
LibertyBraves C BATRK 24.76
LibertySirius A LSXMA 43.72
LibertySirius B LSXMB 45.51
LibertySirius C LSXMK 43.69
LincolnElectric LECO 94.72
LogitechIntl LOGI 36.61
LogMeIn
LOGM 118.95
lululemon LULU 60.09
MarketAxess MKTX 188.67
Marriott
MAR 115.20
MarvellTech MRVL 18.41
MatchGroup MTCH 25.58
s MaximIntProducts MXIM 50.09
MelcoResorts MLCO 23.18
MercadoLibre MELI 236.00
s MicrochipTech MCHP 93.05
MicronTech MU 41.31
Microsemi MSCC 51.46
s Microsoft MSFT 77.91
Middleby
MIDD 119.45
Momo
MOMO 32.81
Mondelez MDLZ 40.73
0.46
0.44
-0.06
-0.23
2.01
-0.68
-1.09
-0.09
-0.68
-0.08
0.41
-0.07
1.12
0.22
0.98
0.65
-1.47
-0.19
0.21
0.48
0.05
0.14
-0.07
0.05
0.37
0.20
1.58
0.21
-0.05
-0.05
-0.05
0.80
0.19
0.34
0.03
-0.46
-1.47
-0.11
0.85
-2.16
...
-0.13
-0.44
-0.87
-0.16
-0.34
0.85
3.09
-0.23
-0.94
1.31
4.54
0.27
-0.04
-0.63
-0.31
0.49
0.25
-0.45
0.05
-0.66
-0.60
-0.50
-0.71
0.19
-0.45
-0.13
-0.09
-0.15
-0.10
0.17
2.61
0.16
-0.27
-0.19
1.60
0.37
-4.81
-0.57
-0.04
0.06
0.24
-0.10
-6.41
0.93
-0.34
-0.38
0.30
0.84
-1.17
-0.08
Net
Sym Close Chg
Stock
MonsterBeverage MNST 55.99 -0.30
Mylan
MYL 38.29 0.78
NXP Semi NXPI 115.49 0.13
Nasdaq
NDAQ 72.94 -1.66
NatlInstruments NATI 43.66 -0.48
NetApp
NTAP 44.26 -0.36
Netease
NTES 276.71 -1.02
Netflix
NFLX 195.13 -0.41
NewsCorp A NWSA 13.62 -0.11
NewsCorp B NWS 13.90 -0.20
Nordson
NDSN 122.88 -0.49
NorthernTrust NTRS 94.98 0.40
NorwegianCruise NCLH 54.17 -3.30
NVIDIA
NVDA 197.80 0.22
OReillyAuto ORLY 209.30 -3.69
s OldDomFreight ODFL 110.63 0.98
ON Semi
ON 19.67 -0.04
OpenText OTEX 33.86 0.03
PTC
PTC 60.12 -0.52
Paccar
PCAR 73.77 1.17
Paychex
PAYX 63.51 0.48
PayPal
PYPL 67.25 -0.01
People'sUtdFin PBCT 18.36 0.12
s PilgrimPride PPC 30.49 -0.08
Priceline
PCLN 1927.86-14.01
Qiagen
QGEN 34.30 -0.10
Qorvo
QRVO 69.68 -2.34
Qualcomm QCOM 52.29 0.08
RandgoldRscs GOLD 98.35 1.16
RegenPharm REGN 440.94 1.57
RossStores ROST 63.39 0.07
RoyalGold RGLD 87.71 0.20
Ryanair
RYAAY105.22 -0.77
SBA Comm SBAC 148.00 0.60
SEI Investments SEIC 63.19 -0.29
Sina
SINA 111.60 -3.29
SS&C Tech SSNC 41.86 0.17
SVB Fin
SIVB 185.18 2.48
ScrippsNetworks SNI 84.50 0.73
Seagate
STX 34.34 0.08
SeattleGenetics SGEN 64.01 0.33
Shire
SHPG 147.82 1.53
SignatureBank SBNY 126.12 1.38
SiriusXM
SIRI 5.74 -0.01
Skyworks SWKS 103.32 -4.02
Splunk
SPLK 63.58 0.30
Starbucks SBUX 55.40 0.19
SteelDynamics STLD 37.78 1.34
Stericycle SRCL 71.90 0.25
Symantec SYMC 32.33 0.18
Synopsys SNPS 83.38 0.20
TD Ameritrade AMTD 47.39 -0.15
TESARO
TSRO 115.51 1.91
T-MobileUS TMUS 61.51 0.83
s TRowePrice TROW 95.63 -0.13
TakeTwoSoftware TTWO 104.56 -0.05
Tesla
TSLA 351.81 -7.84
TexasInstruments TXN 93.45 0.02
TractorSupply TSCO 58.43 -0.25
Trimble
TRMB 40.92 -0.11
21stCenturyFoxA FOXA 27.37 0.19
21stCenturyFoxB FOX 26.70 0.11
UltaBeauty ULTA 204.62 6.25
UltimateSoftware ULTI 191.43 -0.29
UniversalDisplay OLED 135.95 -1.60
VEON
VEON 4.02 -0.02
VeriSign
VRSN 108.19 -1.07
VeriskAnalytics VRSK 84.91 0.11
VertxPharm VRTX 154.60 -0.16
Viacom A VIA 34.05 0.40
Viacom B VIAB 26.53 0.71
Vodafone VOD 28.93 -0.05
WPP
WPPGY 90.10 -2.64
WalgreensBoots WBA 67.20 -0.54
Weibo
WB 96.89 -2.38
WesternDigital WDC 85.48 -0.02
s WillisTwrsWatson WLTW 161.17 1.37
Workday
WDAY 106.77 -0.41
WynnResorts WYNN 145.53 0.20
Xilinx
XLNX 72.42 0.35
Yandex
YNDX 31.64 -0.68
ZebraTech ZBRA 112.13 -0.63
Zillow A
ZG 40.92
...
Zillow C
Z
41.19 0.17
ZionsBancorp ZION 46.05 -0.12
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
46.81
28.41
25.33
31.70
-0.54
-0.15
-0.21
-0.07
Dividend announcements from October 19.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Company
Crown Castle Intl
FR STRATSs 2006-2 GS Grp
Landmark Infr Partners
Phillips 66 Partners
Pinnacle West Capital
VISA Cl A
V
4.1
2.6
8.1
5.0
3.1
0.7
1.05 /.95
.0417 /.04067
.3575 /.355
.646 /.615
.695 /.655
.195 /.165
Q
M
Q
Q
Q
Q
Dec29 /Dec15
Nov15 /Nov14
Nov14 /Nov01
Nov13 /Oct31
Dec01 /Nov01
Dec05 /Nov17
GHL
1.2
.05 /.45
Q
Dec20 /Dec06
CCI
GJS
LMRK
PSXP
PNW
Reduced
Greenhill
.07
.44878
.30479
ENTG
PEIpD
TCFpD
RFCI
.04336
52-Wk %
Sym Hi/Lo Chg Stock
IQ AustraliaSC KROO
iPathAIGCarbon GRN
iPathPBCopper CUPM
iPathPBIndstrMtls HEVY
iShCoreDivGrowth DGRO
iShU.S.Insurance IAK
iShUSMedDevices IHI
iShEdgeMSCIIntSize ISZE
iShEdgeMSCIUSASize SIZE
iShIntRtHdgCorpBd LQDH
iShMSCICanadaETF EWC
iShMSCIKLD400Soc DSI
iShMorningstarMC JKG
iShGlobalHealthcr IXJ
HancockMultFinls JHMF
JPMDivRetEurCur JPEH
JPM DivRetUS Eq JPUS
PwrShDynLCValue PWV
PwrShDynMkt PWC
PwrShFTSE US1000 PRF
PwrShRussTop200 EQWL
PwrShS&P500HiDiv SPHD
PwrShS&P500xRate XRLV
ProShShtVIXST SVXY
ProShrUlHlthCr RXL
SPDRMSCIWorldStrat QWLD
SPDRS&PInsurance KIE
SPDR US LC Low Vol LGLV
SchwabUS Div SCHD
SchwabUS LC Val SCHV
SPDR S&P Home XHB
VanEckEMHYBond HYEM
VanEckFallAnglHYBd ANGL
VanEckVietnam VNM
VangdDivApp VIG
VangdHiDiv
VYM
VangdMegaVal MGV
VangdMCGrowth VOT
VangdValue
VTV
VelocityShVIXShrt XIVH
WBITacticalLCY WBIG
18.95
9.73
35.52
35.00
33.19
65.94
171.44
27.77
80.68
96.58
29.38
94.95
177.65
114.79
36.48
28.84
68.45
38.30
92.73
108.65
50.76
41.91
32.39
106.50
89.60
73.69
92.80
90.34
48.30
52.87
40.77
24.95
30.39
15.50
96.55
82.85
73.22
123.89
101.76
67.00
24.18
0.9
2.0
-0.1
0.8
0.3
1.0
0.7
0.1
0.1
0.1
0.2
0.1
0.3
0.5
...
0.2
0.2
0.4
0.3
0.2
0.2
0.3
0.4
0.7
1.1
0.5
0.7
0.3
0.2
0.2
1.1
0.2
0.1
0.5
0.4
0.3
0.2
0.2
0.2
0.4
0.2
Net YTD
NAV Chg % Ret Fund
FrankTemp/Franklin A
7.49
...
+0.02 23.1 CA TF A p
Fed TF A p
12.02
...
2.39
...
-0.01 12.9 IncomeA p
60.04 +0.06
-0.01 13.8 RisDv A p
FrankTemp/Franklin
C
-0.01 16.2
2.42
...
-0.01 NS Income C t
-0.01 NS FrankTemp/Temp A
GlBond
A
p
12.16
-0.04
-0.01 NS
27.00 -0.01
Growth A p
-0.01 NS
FrankTemp/Temp Adv
-0.01 NS
GlBondAdv p 12.11 -0.04
Harbor Funds
-0.01 13.7
CapApInst
73.96 -0.09
-0.35 29.6
70.40 +0.07
IntlInst r
-0.14 26.9 Harding Loevner
-0.14 27.0 IntlEq
NA
...
... 10.4 Invesco Funds A
-0.05 23.9 EqIncA
11.24
...
-0.69 30.8 John Hancock Class 1
-0.69 31.0 LSBalncd
15.92
...
... 3.6 LSGwth
17.05 -0.02
... 4.0 John Hancock Instl
-0.08 14.1 DispValMCI
23.97 +0.02
-0.08 14.2 JPMorgan Funds
-0.13 20.5 MdCpVal L
39.92 +0.08
-0.60 33.4 JPMorgan R Class
11.67 +0.01
... 14.7 CoreBond
-0.09 35.3 Lazard Instl
19.64 -0.08
-0.07 31.5 EmgMktEq
-0.02 26.6 Loomis Sayles Fds
14.27
...
+0.01 18.4 LSBondI
... 3.9 Lord Abbett A
...
ShtDurIncmA p 4.28
-1.36 31.7 Lord Abbett F
4.27
...
ShtDurIncm
-0.03 10.9 Metropolitan West
10.68
...
TotRetBd
2.1
9.4 TotRetBdI
M
52-Wk %
Sym Hi/Lo Chg Stock
NYSE American highs - 0
NYSE American lows - 12
Nasdaq highs - 76
Net YTD
NAV Chg % Ret Fund
3.1 MCapGro
3.2 MCapVal
9.0
11.1
15.7
27.8
15.4
32.3
24.0
11.7
NA
5.0
NA
NA
NA
NA
30.7
12.9
11.9
16.1
28.8
26.1
31.8
25.6
20.3
Oct25 /Oct20
Oct25 /Oct20
Oct25 /Oct20
Oct25 /Oct20
Nov30 /Nov17
Dec28 /Dec15
Jan25 /Jan12
Nov30 /Nov17
Dec28 /Dec15
Jan25 /Jan12
Q
.385
.00802 M
.00475 M
.38503 Q
Nov21 /Nov01
Nov15 /Oct30
Dec11 /Nov02
Jan02 /Dec11
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
NYSE Arca lows - 13
26.0
5.3
1.1
0.4
2.9
Payable /
Record
M
M
M
M
M
M
M
M
M
M
Oct25 /Oct20
52-Wk %
Sym Hi/Lo Chg Stock
13.9
BLX
ERF
ITUB
RCI
.10804
.02433
.00846
.09583
.18
.18
.18
.1511
.1511
.1511
Banco Latinamer
Enerplus
Itau Unibanco Holding ADR
Rogers Commun
ALGN
WisdTrCBOES&P500 PUTW 29.63 ... AlignTech
ACGL
WisdTrJpnHlthCare DXJH 35.18 0.6 ArchCapital
71.24 0.2 AtlanticCoastFin ACFC
WisdTrUSHiDiv DHS
AxcelisTechs
ACLS
AxoGen
AXGN
BSB Bancorp BLMT
AIPoweredEquity AIEQ 25.01 0.2 BancFirst
BANF
34.35 -0.7 BeaconRoof
iPathS&P500VIXST VXX
BECN
ETRACS2xMLevS&PMLP MLPZ 40.50 -0.5 BioLifeSols
BLFS
GlbXSuperIncPfd SPFF 12.43 -0.1 C&F Fin
CFFI
InfraCapMLPETF AMZA 8.45 0.6 CenterStateBank CSFL
iPathBBloomNatGas GAZB 45.07 0.1 ChinaInfoTech CNIT
KraneEMCnsTech KEMQ 24.84 -2.2 ChinaInternet CIFS
KraneMSCIChinaEnv KGRN 25.16 -1.9 ClearBrLCGrw LRGE
ProShUltVIXST UVXY 15.78 -1.5 Corvel
CRVL
30.19 -0.9 DraperOakwoodWt DOTAW
ProShrUSHlthCr RXD
11.77 -0.2 EtnVncGlbIncBldr EVGBC
ProShrUSSemi SSG
ProShsVIXSTFut VIXY 28.54 -0.7 Exponent
EXPO
Schwab1000Index SCHK 24.99 ... FT GlbNatRscs FTRI
FT LC CoreAlpha FEX
FT Nasd100Tech QTEC
FT TCW Opp FIXD
GDSHoldings GDS
GRAVITY
GRVY
GILT
0.38 -1.5 GilatSatellite
BlonderTongueLab BDR
Daxor
4.54 -2.8 GlbXConsciousCos KRMA
DXR
GoldenMinerals AUMN 0.43 -4.3 GuarantyBncp GBNK
INTC
0.22 -14.3 Intel
JRjr33
JRJR
0.02 -44.4 iShMSCIUSAESGOpt ESGU
LGLRtWi
LGLr
LGIH
3.51 -4.5 LGI Homes
Myomo
MYO
0.66 -0.7 LamResearch LRCX
NorthernOil&Gas NOG
1.20 3.1 LeggMasonUSDivCore UDBI
ParamountGoldNV PZG
0.50 -22.5 LimelightNetworks LLNW
RegionalHlthProp RHE
RegionalHlthPfdA RHEpA 14.17 -6.6 MIAcquisitionsUn MACQU
MaximIntProducts MXIM
UnvlSecInstr
1.45 -9.1
UUU
MercerIntl
MERC
2.25 -2.9
VoltInfoSci
VISI
MicrochipTech MCHP
Microsoft
MSFT
MiddlesexWater MSEX
AdobeSystems ADBE 172.15 12.2 Mimecast
MIME
AdvAcceltrApp AAAP 73.00 2.8 MiratiTherap
MRTX
10.68 +0.01
TRBdPlan
10.05 +0.01
8.1 MFS Funds Class I
40.83 +0.07
ValueI
5.5 MFS Funds Instl
3.3 IntlEq
25.52 -0.01
8.0 Mutual Series
15.0 GlbDiscA
32.80 +0.03
Oakmark Funds Invest
7.9 EqtyInc r
33.81 -0.07
83.88 -0.20
Oakmark
3.7 OakmrkInt
29.02 -0.10
14.6 Old Westbury Fds
LrgCpStr
14.81 -0.06
3.8 Oppenheimer Y
42.29 -0.20
DevMktY
30.6
IntGrowY
42.99 -0.04
20.5
Parnassus Fds
43.53 +0.23
ParnEqFd
NA
PIMCO Fds Instl
NA
...
7.6 AllAsset
10.31
...
TotRt
PIMCO
Funds
A
12.8
NA
...
16.0 IncomeFd
PIMCO Funds D
NA
...
11.6 IncomeFd
PIMCO Funds Instl
NA
...
9.7 IncomeFd
PIMCO Funds P
NA
...
3.6 IncomeP
Price Funds
94.93 -0.44
23.7 BlChip
29.57 +0.01
CapApp
34.73 +0.09
7.3 EqInc
68.84 +0.02
EqIndex
2.3 Growth
68.60 -0.29
74.50 +0.12
HelSci
2.4 InstlCapG
38.54 -0.14
19.21 -0.08
IntlStk
2.9 IntlValEq
15.41 -0.03
4.9
1.0
0.3
4.5
12.9
12.9
12.9
11.2
11.2
11.2
Nov22 /Nov01
Dec15 /Dec01
Dec01 /Nov15
Funds and investment companies
RiverFront Dyn Core Incm
RFUN
RFDA
RFFC
RIGS
EDF
EDF
EDF
EDI
EDI
EDI
Foreign
Initial
Entegris
Pennsylvania REIT Pfd. D
TCF Finl Pfd. C
Amount
Yld % New/Old Frq
Symbol
RiverFront Dyn Uncon Incm
RiverFront Dyn US Div Adv
RiverFront Dyn US FlexCap
RiverFront Strat Incm Fd
Stone Harbor Em Mkts Fd
Stone Harbor Em Mkts Fd
Stone Harbor Em Mkts Fd
Stone Harbor EM Tot Incm
Stone Harbor EM Tot Incm
Stone Harbor EM Tot Incm
Increased
35.28 +0.03
74.43 +0.02 15.9 FPACres
TMktIdxF r
TMktIdxPrem 74.42 +0.02 15.8 FrankTemp/Frank Adv
2.37
...
USBdIdxInstPrem 11.62
... 3.2 IncomeAdv
NwInsghtI
-0.06
0.13
1.05
0.41
-0.28
-0.08
0.91
-0.38
0.07
0.90
0.62
-0.08
0.09
0.18
0.11
0.85
1.47
-0.04
-0.87
...
1.73
0.45
0.02
-3.76
0.50
0.40
1.63
-1.71
-1.79
-0.40
-2.88
0.75
0.49
-0.05
-0.48
-1.41
-0.21
-1.29
0.08
-0.08
1.04
-0.08
0.04
0.15
0.04
-0.13
3.48
1.22
-0.68
1.03
0.16
-0.20
-0.14
-0.50
2.67
-1.31
-0.02
0.73
-0.14
-0.20
-0.03
-0.46
-0.71
0.02
-0.40
0.31
0.15
-0.87
0.09
0.10
-0.12
0.68
...
0.71
0.15
-0.15
-0.18
0.20
...
-0.13
-1.32
-0.08
-0.14
-0.11
-0.24
0.11
-0.05
-0.43
0.03
0.40
0.09
Net
Sym Close Chg
Stock
Dividend Changes
52-Wk %
Sym Hi/Lo Chg Stock
EastmanKodak KODK
EdgewellPersonal EPC
FivePoint
FPH
GenesisEnergy GEL
HormelFoods HRL
KKRIncomeOppsRt KIOrw
KeyEnergySvcs KEG
KinderMorganPfdA KMIpA
MacquarieInfr MIC
NewellBrands NWL
NuvEnerMLPTR JMF
OaktreeSpecNts24 OSLE
OasisMidstream OMP
PartyCity
PRTY
PIMCO HiIncm PHK
RivernorthOppsRt RIVr
SallyBeauty
SBH
SocialCapHedWt IPOA.WS
Supervalu
SVU
Switch
SWCH
TPG Pace
TPGH
TechnipFMC
FTI
Tenaris
TS
3D Systems
DDD
WesternGasEquity WGP
Net
Sym Close Chg
Stock
1.3
0.9
1.8
4.0
1.0
0.3
2.7
1.3
4.3
0.7
0.6
4.8
1.1
0.5
1.6
27.6
...
-3.0
-0.1
0.2
0.2
0.1
7.6
19.8
1.7
0.1
3.0
-0.4
...
1.5
0.2
2.5
5.1
0.5
0.5
5.2
1.0
0.4
0.2
1.4
8.4
Net YTD
NAV Chg % Ret Fund
91.24 +0.06
31.06 +0.03
54.86 -0.07
9.51
...
11.36 -0.02
23.14 -0.01
17.83 -0.01
26.25 -0.02
19.18 -0.02
27.54 -0.04
38.42 +0.08
PRIMECAP Odyssey Fds
Growth r
35.51 -0.17
Principal Investors
13.91 -0.07
DivIntlInst
Prudential Cl Z & I
TRBdZ
NA
...
Schwab Funds
40.01
+0.01
S&P Sel
TIAA/CREF Funds
EqIdxInst
19.21
...
IntlEqIdxInst 20.28 -0.01
Tweedy Browne Fds
28.37 -0.10
GblValue
VANGUARD ADMIRAL
236.72 +0.10
500Adml
33.94 +0.02
BalAdml
11.86
...
CAITAdml
CapOpAdml r 155.63 -0.32
37.08 -0.22
EMAdmr
76.04 +0.12
EqIncAdml
82.12 -0.07
ExtndAdml
GNMAAdml 10.52
...
69.48 -0.12
GrwthAdml
HlthCareAdml r 91.08 +0.40
HYCorAdml r 5.99
...
InfProAd
25.71 +0.02
94.32 -0.60
IntlGrAdml
ITBondAdml 11.45 +0.01
ITIGradeAdml 9.83 +0.01
LTGradeAdml 10.63 +0.01
N Horiz
N Inc
OverS SF r
R2020
R2025
R2030
R2035
R2040
Value
196.89
101.27
9.00
32.78
19.95
31.25
59.60
54.89
7.53
59.95
27.47
1.38
30.63
27.70
60.40
0.60
100.00
77.15
12.19
55.89
70.84
53.41
15.00
63.45
7.00
18.57
29.55
40.33
56.08
55.50
201.00
30.92
4.98
10.56
50.23
14.25
93.11
77.93
46.39
31.45
16.00
52-Wk %
Sym Hi/Lo Chg Stock
NMI Holdings NMIH
NuvNasd100Dyn QQQX
OconeeFederalFin OFED
OldDomFreight ODFL
Old2ndBcp
OSBC
OtterTail
OTTR
PilgrimPride
PPC
PinnacleEnt
PNK
Potlatch
PCH
PwrShBuybackAch PKW
PwrShDivAch PFM
PreformedLine PLPC
PrincipalPriceSet PSET
ProgressSoftware PRGS
RushEnt B
RUSHB
S&T Bancorp STBA
SelectiveIns
SIGI
Sigmatron
SGMA
Silicom
SILC
SpartanMotors SPAR
SpringBkPharm SBPH
Stamps.com
STMP
TRowePrice
TROW
Trupanion
TRUP
TwinDisc
TWIN
Umpqua
UMPQ
uniQure
QURE
VSInverseVIXSTerm XIV
VikingTherap VKTX
VikingTheraWt VKTXW
WSFS Financial WSFS
WillisTwrsWatson WLTW
WintrustFin
WTFC
14.23
23.37
29.74
110.81
13.95
46.15
30.72
25.17
53.60
56.55
25.18
75.76
30.65
41.82
44.94
41.50
55.55
9.40
70.77
16.70
17.94
226.00
95.97
28.51
22.68
20.83
15.99
110.92
3.12
2.05
51.60
161.27
80.72
Nasdaq lows - 46
ADOMANI
AMAG Pharm
AcelRxPharm
AchieveLifeSci
Aemetis
ADOM 3.91 0.5
AMAG 15.78 -1.2
1.55 ...
ACRX
1.79 -1.9
ACHV
0.64 -7.2
AMTX
+0.22
...
...
...
-0.01
...
+0.17
-0.44
-0.04
+0.01
+0.01
+0.01
...
-0.07
+0.02
-0.02
+0.10
+0.04
+0.04
+0.13
+0.05
14.5
7.0
4.9
6.0
2.7
1.4
24.0
4.8
11.8
1.5
2.3
3.4
1.7
23.8
15.9
22.8
11.6
11.4
7.8
11.1
14.5
VANGUARD FDS
26.28
13.3 DivdGro
215.88
HlthCare r
16.2 INSTTRF2020 22.46
10.7 INSTTRF2025 22.72
5.1 INSTTRF2030 22.90
25.3 INSTTRF2035 23.09
27.0 INSTTRF2040 23.28
13.4 INSTTRF2045 23.42
39.14
13.9 IntlVal
33.01
2.0 LifeGro
22.3 LifeMod
26.85
20.2 PrmcpCor
26.82
7.3 SelValu r
32.92
1.8 STAR
27.06
40.1 STIGrade
10.69
4.0 TgtRe2015
15.88
4.3 TgtRe2020
31.51
9.2 TgtRe2025
18.47
+0.08
+0.92
...
-0.01
-0.01
-0.01
-0.01
-0.01
-0.05
-0.02
...
-0.05
+0.02
-0.01
+0.01
...
-0.01
...
13.9
20.1
11.5
13.0
14.2
15.5
16.8
17.3
23.3
15.5
12.3
20.9
14.4
15.1
2.2
9.4
11.5
13.0
24.0
26.5
NA
16.2
15.8
22.5
AlcentraCapital ABDC
AquaMetals
AQMS
AstroNova
ALOT
BedBath
BBBY
BroadwindEnergy BWEN
CHF Solutions CHFS
CTI Ind
CTIB
CardiomePharma CRME
ChinaBiologic CBPO
ClearOne
CLRO
ConcordiaIntl CXRX
CytRx
CYTR
DHX Media VV DHXM
DexteraSurgical DXTR
DifferentialBrds DFBG
ElbitImaging
EMITF
FFBW
FFBW
FTD
FTD
FrontierComm FTR
GenMarkDiagn GNMK
GladstonePfdB GAINO
ImmunePharma IMNP
Innodata
INOD
iShMSCIQatarCapped QAT
JMU
JMU
JasonIndustriesWt JASNW
KraftHeinz
KHC
MustangBio
MBIO
NeuroMetrix
NURO
Popular
BPOP
RennovaHealth RNVA
RestorationRob HAIR
RexEnergy
REXX
RhythmPharm RYTM
Trevena
TRVN
US Gold
USAU
VSVIXShortTerm VIIX
VistaGenTherap VTGN
Vivus
VVUS
WMIH
WMIH
Xperi
XPER
Net YTD
NAV Chg % Ret Fund
MidCpAdml 184.76
11.43
MuHYAdml
MuIntAdml
14.24
11.72
MuLTAdml
10.99
MuLtdAdml
MuShtAdml 15.80
PrmcpAdml r 134.94
REITAdml r 119.19
SmCapAdml 68.43
STBondAdml 10.45
STIGradeAdml 10.69
TotBdAdml
10.79
TotIntBdIdxAdm 21.87
TotIntlAdmIdx r 29.90
64.11
TotStAdml
TxMIn r
14.14
ValAdml
39.69
68.74
WdsrllAdml
65.10
WellsIAdml
73.54
WelltnAdml
WndsrAdml
78.61
21.1
6.9
26.7
3.7
25.2
13.4
15.0
16.5
17.7
18.7
14.2
1.8
-0.5
0.7
0.9
3.4
0.3
-0.3
0.1
0.7
0.2
0.3
-0.1
0.9
0.4
2.6
1.3
0.9
0.9
13.7
3.1
-1.6
-0.5
-0.1
0.7
2.2
3.4
60.1
0.8
14.6
57.3
2.9
0.9
1.4
52-Wk %
Sym Hi/Lo Chg
TgtRe2030
TgtRe2035
TgtRe2040
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
10.02 -1.7
4.51 -0.6
11.00 -0.8
20.93 0.3
2.70 -5.2
6.66 -6.7
3.76 -4.8
1.81 -3.6
76.66 -2.9
7.11 2.8
0.92 -3.9
0.34 -5.2
3.60 -5.3
0.11 -23.0
1.00 -13.0
2.57 ...
11.05 -0.4
11.49 -2.8
11.16 0.2
7.68 -2.7
25.16 0.2
0.88 -37.4
1.20 -3.8
15.00 -0.6
1.06 -6.5
0.02 -22.5
76.31 -0.8
9.10 -4.7
1.60 -9.0
32.05 -1.8
0.95 -20.2
6.52 -5.7
1.93 -3.4
22.60 -2.6
1.57 -9.3
1.38 -7.4
14.53 -0.7
1.04 -13.8
0.76 2.8
0.81 -4.4
21.30 -0.2
Net YTD
NAV Chg % Ret
33.35 -0.01
20.48 -0.01
35.26 -0.01
22.14 -0.02
35.62 -0.02
13.55
...
10.94
...
26.87 +0.02
42.58 +0.07
38.73 +0.02
VANGUARD INDEX FDS
500
236.70 +0.09
202.66 -0.16
ExtndIstPl
55.44 +0.02
SmValAdml
TotBd2
10.75 +0.01
17.88 -0.04
TotIntl
64.08 +0.02
TotSt
VANGUARD INSTL FDS
BalInst
33.95 +0.02
DevMktsIndInst 14.16 -0.02
DevMktsInxInst 22.14 -0.03
82.12 -0.07
ExtndInst
GrwthInst
69.48 -0.12
10.47
...
InPrSeIn
233.55 +0.09
InstIdx
233.57 +0.10
InstPlus
InstTStPlus
57.51 +0.02
40.81 +0.04
MidCpInst
201.29 +0.24
MidCpIstPl
68.42 -0.05
SmCapInst
STIGradeInst 10.69 +0.01
10.79 +0.01
TotBdInst
10.75 +0.01
TotBdInst2
10.79 +0.01
TotBdInstPl
TotIntBdIdxInst 32.82 +0.01
TotIntlInstIdx r 119.57 -0.26
TotItlInstPlId r 119.59 -0.27
TotStInst
64.12 +0.02
ValueInst
39.69 +0.10
Western Asset
NA
...
CorePlusBdI
14.2
15.4
16.7
17.2
17.2
7.0
1.7
7.7
11.0
11.3
16.2
13.9
8.0
3.3
23.7
15.8
10.7
22.9
22.9
13.9
22.3
1.8
16.2
16.3
15.8
14.6
14.6
11.8
2.3
3.4
3.3
3.4
1.8
23.8
23.8
15.9
11.6
NA
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THE WALL STREET JOURNAL.
B10 | Friday, October 20, 2017
BANKING & FINANCE
Travelers Net Sinks on Hurricane Losses
Travelers Cos. said earnings declined 59% in the third
quarter as results were battered by a severe hurricane
season.
The insurance firm said
Thursday that its catastrophe
losses, net of reinsurance, totaled $455 million during the
quarter, compared with the
range of $245 million to $490
million it provided in mid-September for Hurricane Harvey
alone. The company’s catastrophe losses were $89 million a
year ago.
Overall, Travelers reported
net income of $293 million, or
$1.05 a share, compared with
$716 million, or $2.45 a share,
a year earlier. Revenue, which
includes investment income,
rose 5%, to $7.3 billion.
Chief
Executive
Alan
Schnitzer said the third-quarter results amounted to “a
considerable profit in one of
the costliest hurricane seasons
on record.” Last month, Travelers paused its share-buyback
program as it assessed the impacts of hurricanes Harvey
and Irma.
Travelers’s shares advanced
2.4%, to $133.17, on Thursday.
New York-based Travelers
is among the largest sellers of
insurance to U.S. businesses
REUTERS
BY IMANI MOISE
AND LESLIE SCISM
Hurricanes Irma and Jose make their way across the Atlantic in September. There have been nine Atlantic hurricanes this season.
and sells car and home insurance to individuals and families. It is one of the first big
property-casualty insurers to
report quarterly earnings, and
its results are a bellwether for
others that follow.
There have been 15 named
storms and nine hurricanes in
the current Atlantic hurricane
season, fueled by warmerthan-average Atlantic Ocean
currents, weak westerly Pacific
winds and turbulent hot tropical air over the Indian Ocean.
An average season, which
runs from June through November, typically produces a
dozen named storms, with six
reaching hurricane strength.
Travelers’s
catastrophe
damage was partially offset by
rising investment income,
stoked by a small sliver of its
bond-heavy investment portfolio in alternative holdings such
as private-equity funds. Travelers said its investment income rose 6%, to $588 million.
A substantial portion of an insurer’s profit comes from investing customers’ premium
dollars until they are needed
to pay claims.
Travelers also said its autoinsurance results were aided
U.K. Prods Banks on Gupta Ties
HSBC Holdings PLC and
Standard Chartered PLC have
been asked by the U.K. financial regulator to review possible business with South Africa’s Gupta family, becoming
the latest firms to be hit by
the fallout from a corruption
By Margot Patrick in
London and Gabriele
Steinhauser in
Johannesburg
scandal in Africa’s most developed economy.
After a request from U.K.
Chancellor of the Exchequer
Philip Hammond, the U.K. Financial Conduct Authority
said Thursday that it has been
in contact with the two banks
about their possible dealings
with the family and “will consider carefully further responses received.”
Standard Chartered said it
shut down some accounts
linked to the Guptas in 2014
after an internal investigation.
HSBC declined to comment.
South African police and
prosecutors have said they are
investigating allegations of
corruption, including potential
kickbacks from international
companies,
which
were
brought to light by emails and
other documents that appear
to have been obtained from
Gupta-controlled companies.
The documents have buttressed longstanding suspicions among many South Africans that the powerful
business clan leveraged its
connection to President Jacob
Zuma and other government
officials to amass great personal wealth.
The Guptas and Mr. Zuma
have denied wrongdoing.
The scandal has ensnared
international firms including
KPMG International, SAP SE
and McKinsey & Co., and led
to the collapse of the U.K. arm
of public relations firm Bell
Pottinger over its work for a
Gupta holding company.
KPMG, which audited Gupta
companies for 15 years, last
month removed the leadership
of its South African branch after an internal probe found it
fell short of its own standards
during the 15 years it audited
Gupta companies.
McKinsey this week said
that it had disciplined some
The Gupta
family is
enmeshed in a
scandal tied to
South African
President
Jacob Zuma.
staff for violating professional
standards on a contract with a
South African company that
was owned by a close associate of the Guptas. SAP said it
would release the findings of
an internal investigation over
alleged kickbacks to a Gupta
company by the end of this
month.
KPMG and McKinsey have
denied any wrongdoing. SAP’s
South African office denied
the allegations of kickbacks
when they first surfaced in
media reports in July, but the
statement was removed from
the company’s website days
later when the software maker
launched the internal probe. A
spokesman has declined to
comment on why the statement was removed.
Peter Hain, a former cabinet minister and a member of
the House of Lords, confirmed
on Thursday that he had written to Mr. Hammond last
month about allegations by a
whistleblower that HSBC and
Standard Chartered may have
inadvertently served as conduits for corrupt proceeds.
“We take allegations of financial misconduct very seriously, and have passed Lord
Hain’s letter on to the Financial Conduct Authority and
relevant U.K. law enforcement
agencies, including the National Crime Agency and Serious Fraud Office,” a Treasury
spokeswoman said.
Feud Hits a Hot Initial Coin Offering
One of the year’s biggest
initial coin offerings, a $232
million token sale by Tezos, is
embroiled in a management
fight that is threatening the
deal and highlighting the risks
in this red-hot corner of finance.
Tezos’s fundraising in July
at that point was the largest
initial coin offering, a new
type of rapid fundraising that
has captured imaginations and
rivaled venture capital for
technology startups. But a battle between the founders of
the company and the head of
the Swiss foundation they installed to give it more independence has put most trading
of Tezos coins on ice, possibly
until early next year.
That could alarm investors
who were hoping that Tezos
might catch on quickly. Sales
of digital tokens like Tezos
coins have concerned regulators and become a sign for
some investors of a bubble in
the cryptocurrency world.
The costly battle at the
company will be an early test
for the coin market, which has
raised $2.3 billion this year,
about seven times the amount
raised in all years before 2017.
The money has poured in
due to enthusiasm for virtual
currencies such as bitcoin and
open-ledger “blockchain” technologies that are often tied to
the offerings. The largely unregulated coin offerings in
turn have helped push the
value of bitcoin and some
other virtual currencies to record highs.
But the Tezos deal highlights some of the drawbacks
of initial coin offerings, also
known as ICOs: untested management, opaque structures
and little transparency into
BRIAN SNYDER/REUTERS
BY PAUL VIGNA
Dynamic Ledger Solutions, run by Kathleen Breitman and her husband, raised $232 million.
what anyone involved wants to
do with the huge sums they
are raising.
The fight at Tezos is between the husband-and-wife
team that started the deal and
the founder of the nonprofit
foundation they tapped to control the project.
“There’s a lot to regret
here,” says Kathleen Breitman
in an interview this week. She
and her husband, Arthur, run
the primary company developing Tezos, which wants to improve blockchain ledger technology through software.
A lawyer representing the
Breitmans on Sunday sent a
nine-page letter to the foundation’s board, demanding that
its founder and president, Johann Gevers be removed, or
they would withdraw their
support from the project.
Mr. Gevers, in an email,
wrote that “the Breitmans
have attempted to bypass the
Swiss legal structure and take
over control of the foundation,
and have acted destructively,
causing months of delays in
the Tezos project.”
He has alleged the Breitmans’ involvement in his work
“was incompatible with the
needed independence of the
foundation,” according to a
separate letter from a Breitman lawyer, which referenced
a Sept. 21 meeting at which
Mr. Gevers made the claim.
The Breitmans control Dynamic Ledger Solutions Inc.,
which, according to Tezos’s
website, “owns all of the
Tezos-related
intellectual
property.”
The Breitmans contend they
used a Swiss foundation to
boost the company’s independence and add checks and balances in its early period. Eventually, the plan is for the
Breitmans to sell their company to the foundation for
about $20 million.
But how much control the
Swiss foundation has over the
company’s direction has led to
a dispute that has put trading
of Tezos tokens held by investors in limbo while also putting some of the technology on
hold as well.
The Tezos tokens, nicknamed tezzies, have yet to begin formally trading, though
some trades are taking place in
a less liquid prelaunch market.
The formal start of trading is
tied to the release of the production version of the Tezos
platform. That has been delayed by the fight and might
not come until February, more
than six months after the
money was raised this past
July, Ms. Breitman said.
The money that was raised
in the deal is currently with
the foundation in a bank account, Ms. Breitman says. The
proceeds are in the process of
being converted from virtual
currencies into governmentbacked currencies.
by price increases. Many car
insurers have raised premium
rates over the past year to
combat a surge in wrecks after
an improved economy put
more traffic on the roads and
smartphone proliferation contributed to distracted driving.
The company said core operating earnings declined 64%,
to $253 million, from the yearearlier period. Core operating
earnings are a widely watched
industry benchmark because
they exclude realized capital
gains and losses in companies’
big investment portfolios as
well as items that aren’t considered recurring in nature.
Net premiums written, a
measure of revenue growth,
rose 4% to a record $6.7 billion.
In an earnings call, Mr.
Schnitzer said drones performed more than 1,000 catastrophe inspections, reducing
claims-handling expenses. He
also said that “virtually 100%”
of claims inspections were
done with Travelers’s own employees. In contrast, many insurers have scrambled to find
independent adjusters for the
back-to-back hurricanes.
Catastrophe-modeling firms
have estimated insured losses
from hurricanes Harvey, Irma
and Maria and two earthquakes in Mexico, which also
struck during the quarter, will
total $68 billion to $148 billion
industrywide. Travelers’s estimated cost for quarterly catastrophe losses was $700 million
on a pretax basis.
Much of the damage is expected to be borne by reinsurers. These are specialty firms
that agree to take responsibility for some of the risk in policies sold by insurers to businesses and individuals.
Blackstone’s Profit
Increases as Healthy
Markets Give a Lift
BY MIRIAM GOTTFRIED
Blackstone Group LP’s
third-quarter profit rose as
strong markets boosted the
value of its portfolio and new
capital flowed into its funds.
The private-equity firm’s
earnings climbed to $384.6
million in the period ended
Sept. 30, from $312.9 million
in the year-earlier period.
Economic profit, which reflects changes in the value of
unrealized investments, rose
to $834.3 million from $687
million, and its per share level
of 69 cents exceeded the 54cent consensus per share estimate of analysts polled by
FactSet.
Institutions such as pension funds, endowments and
sovereign-wealth funds have
been shifting more of their
capital to private equity, attracted by the potential for
higher returns. Private capital
funds raised $391 billion from
investors in the first half of
the year, surpassing the previous record of $384 billion
in the first half of 2008, according to data provider
Preqin.
The firm’s assets under
management rose to $387.4
billion from $371.1 billion in
the prior quarter and $361 billion a year earlier.
Blackstone brought in
nearly $20 billion of new capital in the quarter, propelling
its management fees higher.
Fees that the firm collects
based on the performance of
its investments rose 33% to
$893.8 million.
In total, fee-related earnings climbed 25% to $306.7
million in the quarter as the
portion of assets for which the
firm earns fees rose to $285.7
billion from $267.8 billion a
year earlier.
Robust markets for stocks,
debt and real estate have bolstered the value of Blackstone’s portfolio and have allowed it to unload assets at
high valuations. The firm sold
about half of its remaining
shares in Hilton Worldwide
Holdings Inc. during the quarter and fully exited its investment in Hilton Grand Vacations Inc., one of the three
public companies it spun off
from its original investment in
the hotel chain. Blackstone’s
$6.5 billion investment in Hilton has now produced about
$14 billion in profit, including
the value of shares it hasn’t
sold.
Blackstone’s distributable
earnings, the share of profits
that could be doled out to
shareholders, rose to $625.6
million, or 52 cents a share,
from $593.5 million, or 48
cents a share, a year earlier.
The firm said it would pay a
44-cent dividend for the quarter, compared with 41 cents for
$20
Sum, in billions, of new capital
Blackstone got during quarter
the year-earlier quarter.
Blackstone’s success has
come from catering to the institutions and the ultrarich,
but the firm is pushing aggressively into products for retail
investors with $5 million or
less as it seeks its next leg of
growth. Retail investments
now represent 18% of Blackstone’s total assets under management, and the firm is developing more products for
individuals that offer greater
liquidity than its traditional
funds.
“As you move down the
risk-and-return spectrum, the
pyramid gets wider and
wider,” Chief Executive Stephen Schwarzman said on a
call with analysts Thursday,
describing the retail opportunity as “vast.”
First Data Erroneously
Posts News of Acquisition
BY ALLISON PRANG
First Data Corp. said it
mistakenly posted a draft of a
news release Thursday morning that it would acquire
credit-card processing firm
BluePay Holdings Inc., a deal
it says hasn’t been finalized.
The payment-processing
company has since removed
the release from its website
and said the conference call
mentioned in the release isn’t
going to happen.
First Data, however, did
confirm that it is in talks to
buy BluePay.
BluePay, based outside of
Chicago, is owned by privateequity firm TA Associates and
its own management.
“There can be no assurance
that a transaction will be finalized and, if so, what will be
the terms and conditions of
any such transaction,” First
Data said.
In July, New York-based
First Data bought payments
processor CardConnect Corp.
for $15 a share. The deal was
valued at around $750 million,
including the repayment of
debt and redemption of its
preferred stock.
First Data’s shares rose
1.2%, to $18.45, on Thursday.
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THE WALL STREET JOURNAL.
Friday, October 20, 2017 | B11
* * * *
MARKETS
Treasurys
Rise With
Catalonia
Tensions
Blue-Chip Stocks Edge Higher
BY DANIEL KRUGER
BY RIVA GOLD
AND AKANE OTANI
AUCTION RESULTS
Here are the results of Thursday's Treasury auction.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
29-YEAR, FOUR-MONTH TIPS
$13,325,215,200
Applications
$5,125,070,200
Accepted bids
$10,726,800
" noncompetitively
100.838047
Auction price (rate)
(0.908%)
0.875%
Interest rate
51.28%
Bids at clearing yield accepted
912810RW0
Cusip number
The Treasury inflation-protected securities, dated Oct.
31, 2017, mature on Feb. 15, 2047.
Treasury Auctions
The U.S. Treasury Department
will auction $181 billion in securities next week, comprising $103
billion in new debt and $78 billion
in previously sold debt. Details
(all with minimum denominations
of $100):
Monday: $42 billion in 13week bills, a reopening of an issue first sold on July 27, 2017,
maturing Jan. 25, 2018. Cusip
number: 912796NP0.
Also, $36 billion in 26-week
bills, a reopening of an issue
first sold on April 27, 2017, maturing April 26, 2018. Cusip number: 912796LX5.
Noncompetitive tenders for
both issues must be received by
11 a.m. EDT Monday and competitive tenders, by 11:30 a.m.
Tuesday: $26 billion in
two-year notes, dated Oct. 31,
2017, maturing Oct. 31, 2019.
Cusip: 9128283A6.
Noncompetitive tenders are
due by noon EDT Tuesday; competitive tenders, by 1 p.m.
Wednesday: $15 billion in
two-year floating-rate notes,
dated Oct. 31, 2017, maturing
Oct. 31, 2019. Cusip: 9128283B4.
Also, $34 billion in five-year
notes, dated Oct. 31, 2017, maturing Oct. 31, 2022. Cusip:
9128283C2.
Noncompetitive tenders for
the FRNs must be received by
11 a.m. EDT Wednesday and
competitive tenders, by 11:30
a.m. For the five-year notes,
noncompetitive tenders are due
by noon; competitive, by 1 p.m.
Thursday: $28 billion in
seven-year notes, dated Oct. 31,
2017, maturing Oct. 31, 2024.
Cusip: 9128283D0.
Noncompetitive tenders must
be received by noon EDT Thursday; competitive, by 1 p.m.
the insurance firm reported a
profit for the third quarter despite fallout from hurricanes.
It is one of the first big property-casualty insurers to report quarterly earnings.
Verizon Communications
also buoyed the Dow, as its
shares jumped 56 cents, or
1.2%, to 49.21 after the company said it gained wireless
subscribers in the latest quarter, in part thanks to promotions around the latest iPhone.
United Continental Holdings posted its biggest percentage decrease since 2009,
falling 8.21, or 12%, to 59.78.
The stock was the S&P 500’s
biggest decliner Thursday.
United Continental, which
has been in tough competition
with low-cost carriers, reported
quarterly
results
Wednesday that were largely
in line with analysts’ expectations. The company faced
sharp questions from analysts
on its earnings call Thursday.
“We’ve dug ourselves historically into a little bit of a competitive hole,” the chief executive said.
As stocks paused, assets
that investors consider to be
Travelers
U.S. stocks stalled as a
stream of earnings and other
company news swung shares.
Major inTHURSDAY’S
dexes fell at
MARKETS
the opening,
and the Dow
Jones Industrial Average was down roughly
105 points at its session low
before the blue-chip index recovered toward the close and
notched a fresh record.
The Dow industrials ended
the day up 5.44 points, or less
than 0.1%, at 23163.04, after
they closed above 23000 for
the first time on Wednesday.
Thursday marked the fifth
straight session of gains for
the Dow industrials and the
S&P 500, which rose 0.84
point, or less than 0.1%, to a
record 2562.10. The Nasdaq
Composite fell 19.15 points, or
2
1
0
Dow Jones Industrial Average
–1
Apple
–2
–3
9:30 10
11
noon
Source: FactSet
0.3%, to 6605.07 amid declines
in tech shares.
Index heavyweight Apple
fell $3.78, or 2.4%, to
$155.98—shaving about 26
points off the Dow—following
reports that a new cellular
feature on the Apple Watch
was disabled in China.
Shares of eBay fell 68 cents,
or 1.8%, to 37.29 after the on-
1
2
3
4
THE WALL STREET JOURNAL.
line marketplace reported
higher-than-expected sales for
the third quarter, but lowered
its annual profit outlook for a
second consecutive quarter.
An increase in the shares of
Travelers Cos. helped the Dow
industrials eke out a slight
gain. Travelers rose 3.15, or
2.4%, to 133.17, adding roughly
22 points to the index, after
relatively safe gained.
Government-bond prices
rose, sending the yield on the
benchmark 10-year U.S. Treasury note down to 2.323%
from 2.339% on Wednesday.
Utilities companies, which
investors consider bond proxies because of their relatively
hefty dividends, added 1% in
the S&P 500, building on their
double-digit percentage gains
for the year.
Elsewhere, the Stoxx Europe 600 declined 0.6% and
Spain’s IBEX-35 stock index
fell 0.7% as political tensions
flared in Spain.
Stocks in China extended
declines after China reported
slightly slower growth in the
third quarter.
In early trading Friday, key
Asian markets largely started
softly. Benchmarks in Japan
and New Zealand were both in
the red after rising for the
13th-straight
session
on
Thursday. The NZX 50 was off
0.1%, and the Nikkei was down
0.3%. Australian stocks rebounded after a weak opening,
with the S&P/ASX 200 off 0.1%.
Korea’s Kospi climbed 0.3%
with Samsung up double that.
Dispute Over Puerto Rico Debt Ramps Up
Billionaire hedge-fund manager Seth Klarman questioned
the wisdom of expunging
Puerto Rico’s financial obligations in a letter to investors.
The message from one
of Puerto Rico’s most prominent investors was a response
to intensifying calls for deep
write-downs on the U.S. territory’s $73 billion in debt to
free funds for mounting fiscal
and humanitarian problems
following Hurricane Maria.
An activist group has contacted institutions invested in
Mr. Klarman’s Baupost Group
LLC to request they pressure
the hedge fund into forgiving
its portion of Puerto Rico’s
distressed bonds, according to
his letter on Wednesday.
Baupost owns $911 million in
bonds backed by Puerto Rico
sales taxes.
Canceling Puerto Rico’s
public debts or putting a moratorium on payments “may be
well intentioned,” Mr. Klarman
said in his letter, but “it is impractical” and would undermine the obligation of bond issuers
to
repay
their
obligations that undergird
credit markets.
Puerto Rican citizens and
small cooperative banks on
the island also hold government debt, he said, and eliminating those bonds would affect household savings.
Advocacy group Hedge Clippers sent letters this week to
18 universities, including Harvard, Yale and the University
of Washington, to criticize
Baupost’s Puerto Rico invest-
MARIO TAMA/GETTY IMAGES
BY ANDREW SCURRIA
Residents of San Isidro waited Tuesday as U.S. soldiers unloaded food and water in an area still without electricity or running water.
ments and to urge the endowments to divest, according to a
Hedge Clippers spokesman.
Mr. Klarman’s comments reflect a tension in Puerto Rico’s
restructuring strategy. Investors agree the island can’t sustain its existing levels of debt,
but disagree on whether and
how a reduction in its obligations would affect its ability to
borrow again.
Bondholders have argued in
court that a deep restructuring would alienate the capital
markets and cripple Puerto
Rico’s chance of accessing new
credit. Others say that municipal investors will gladly invest
in Puerto Rico again once its
obligations are reduced and its
economy revives.
“If the repayment obligation underlying a debt was uncertain, the market would
quickly shut down, potentially
for even the most creditworthy issuers,” Mr. Klarman’s letter said. “Expunging the debt
would almost certainly eliminate any ability the commonwealth would have to borrow
money in the future at reasonable rates.”
In May, a federal oversight
board installed by Congress
placed the territory under
court protection, starting what
amounts to the largest-ever
U.S. municipal bankruptcy.
Mr. Klarman’s letter came
two weeks after President
Donald Trump sparked a rout
in Puerto Rico bonds when he
said the debt load may get
wiped out to help the island
economy recover from Hurricane Maria. The White House
later walked back Mr. Trump’s
comments. Mr. Trump has no
authority to unilaterally forgive Puerto Rico’s debts.
Labor, environmental and
immigrant-rights
groups,
joined by Sen. Elizabeth Warren (D., Mass.), held a rally
near Capitol Hill on Thurs-
LSE Chief to Step Down Next Year
BY BEN DUMMETT
London Stock Exchange
Group PLC said Chief Executive Xavier Rolet would leave
the company by the end of
next year, bringing down the
curtain on a tenure marked by
a big bet on index services and
a failed attempt to create a
pan-European exchange.
The LSE said Thursday that
it would start looking for a
new chief executive and work
closely with Mr. Rolet, who
was appointed in May 2009, to
ensure a smooth handover.
Despite the lengthy transition, the LSE’s new CEO will
likely take the helm amid
Britain’s messy divorce from
the rest of Europe and the uncertain economic and political
climate that it is creating.
Meanwhile, the company’s lucrative business of clearing
trades in derivatives and
other securities faces new
competition.
This month, German clearinghouse Eurex, which is
owned by Deutsche Börse AG,
said it plans to set up a profitsharing system with customers to try to win market share
from the LSE’s majority-owned
LCH.Clearnet Group Ltd.
Still, Mr. Rolet is leaving
the LSE in a position of
strength, as one of the world’s
biggest providers of licensing
indexes for institutional investors and developers of ex-
SIMON DAWSON/BLOOMBERG NEWS
U.S. government bonds
gained Thursday as investors
sought assets perceived as relatively safe after tensions
heightened between the Spanish government and the Catalan independence movement.
The yield on the benchmark
10-year Treasury note fell to
2.323% from 2.339% Wednesday. The yield has fallen in
four of the past six sessions.
Yields fall as bond prices rise.
After CataloCREDIT
nia’s leaders on
MARKETS Thursday defied
an
ultimatum
from Madrid by
failing to abandon their push
for independence, Spanish
Prime Minister Mariano Rajoy
called an extraordinary cabinet meeting for Saturday,
where the government is expected to invoke a never-before-used article of Spain’s
constitution to reduce some of
the region’s autonomy.
Investors also bought Treasurys as they focused on the
potential for inflation to remain sluggish no matter whom
President Donald Trump designates as his choice to lead
the Federal Reserve. Potential
picks include Fed governor Jerome Powell, White House
economic adviser Gary Cohn,
Stanford economics professor
John Taylor and former Fed
governor
Kevin
Warsh.
Messrs. Taylor and Warsh are
seen by analysts as significantly more hawkish than
Chairwoman Janet Yellen, who
is also being considered.
Ms. Yellen herself has been
more aggressive in trying to
restore monetary policy to
precrisis norms than many investors had expected. At their
meeting last month, policy
makers forecast that they
could raise interest rates in
December and three more
times in 2018, even though the
measure of inflation tracked
by the Fed was 1.4% in August,
below its 2% target.
Ms. Yellen has said she expects inflation to return to the
central bank’s target.
Dow industrials rise
Dow Ekes Out a Gain
fifth session in a row
A gain by Travelers Cos. helped counteract a decline by Apple, a day
to another record;
after the blue-chip index closed above 23000 for the first time.
utilities show strength 3%
Xavier Rolet is leaving the company in a position of strength.
change-traded funds. This follows the 57-year-old’s $2.7
billion acquisition of indexservices provider Frank Russell Co. in 2014. The deal represented a successful bet on
low-cost funds that mimic
benchmarks from higher cost
mutual funds.
Vanguard Group, a leading
provider of index funds, attracted nearly $300 billion
into its funds for the first nine
months of this year, almost
matching flows into the firm
for all of 2016 and underscoring the demand for index
products on which these types
of funds are built.
The LSE’s latest results
highlight the benefits of Mr.
Rolet’s aggressive move into
index services. The exchange
operator Thursday reported an
18% jump in third-quarter revenue from the year-earlier period, to £442.7 million ($584.5
million), led by gains in its information-services division,
which includes indexes, as well
as by a strong performance
from its clearing operations.
The company said operating
income for the third quarter
rose 17%, to £486.1 million.
On Thursday, the LSE’s
shares fell 1.1%, to £38.78.
Under Mr. Rolet’s leadership the market capitalization
of the LSE has risen from
about £800 million to almost
£14 billion, the company said.
Still, Mr. Rolet’s more ambitious plans to create a pan-European exchange, and before
that a trans-Atlantic exchange
operator, ultimately failed
amid regulatory and political
pressures.
After agreeing to a nearly
$30 billion tie-up with Germany’s Deutsche Börse, European regulators blocked the
proposed deal in March after
more than a yearlong effort to
complete the transaction.
The exchanges hoped the
combination would create a
more formidable competitor
against U.S. rivals such as
CME Group Inc. and Intercontinental Exchange Inc., while
bringing greater financial stability to Europe’s capital markets and offering companies
and other market participants
a deeper pool of funding.
But the European Union
worried the deal risked giving
the combined entity too much
influence over the clearing of
fixed-income trading after the
LSE refused to comply with
certain conditions, including
the sale of the LSE’s Italian
credit-trading platform.
In 2011, the LSE tried to
create a trans-Atlantic exchange operator through a
merger with Canada’s main
stock-market operator but that
succumbed to a rival homegrown bid.
—Maryam Cockar
contributed to this article.
day for a congressional recovery plan that cancels Puerto
Rico’s debts or puts a moratorium on payments.
The oversight board’s
framework called for Puerto
Rico to pay bondholders
roughly a quarter of what they
are owed over the next decade. That fiscal plan is being
re-evaluated to account for the
economic slowdown and population loss from the hurricane.
Gov. Ricardo Rosselló met
with Mr. Trump and Federal
Emergency
Management
Agency officials at the White
House on Thursday to discuss
a federal aid package.
SEC Clears
‘Speed Bump’
For Chicago
Exchange
BY ALEXANDER OSIPOVICH
The Securities and Exchange Commission has approved a plan by the tiny Chicago Stock Exchange to
introduce a new “speed
bump,” a person familiar with
the situation said.
The Chicago exchange’s
speed bump is a brief delay
designed to help protect
slower traders from certain
high-frequency trading strategies, and the SEC’s decision
comes as several other exchanges have also experimented with such delays.
An SEC spokesman wasn’t
immediately available for comment.
The decision marks a win
for the Chicago bourse, which
has been trying to sell itself
to a group of Chinese and
U.S. investors, in a deal that
has fueled opposition on Capitol Hill amid fears it could
expose U.S. markets to Chinese hacking.
That deal is in limbo as it
awaits a vote by the SEC’s
commissioners. CHX Holdings
Inc., parent company of the
Chicago exchange, denies that
its proposed sale would endanger U.S. markets.
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THE WALL STREET JOURNAL.
B12 | Friday, October 20, 2017
MARKETS
Catalonia Crisis Weighs on Spain’s Debt
Rising risk pushes up
premium demanded
for bonds; Southern
European stocks hurt
BY JON SINDREU
Catalonia’s push for independence is weighing on
Spain’s short-term debt and
hampering stock markets
across Southern Europe.
Europe’s bond markets have
been mostly unruffled by the
Catalan crisis, but investors
are now asking for a higher
premium to hold two-year
Spanish sovereign bonds
against German debt of the
same maturity—a widely used
measure of the credit risk of
eurozone countries.
With Madrid and Barcelona
still butting heads, some markets could see further selling.
On Thursday, as the Spanish
government announced it
would take steps to take control of the Catalan government
and temporarily end regional
autonomy, this premium rose
to 0.501 percentage point,
from 0.355 a month ago.
The spread on Spanish sovereign bonds against German
debt is still small, but the increase is especially visible
when compared with Italy’s,
another Southern European
country that money managers
usually see as similarly risky.
With the Catalan crisis unfolding, Spain’s two-year bonds
now appear to be almost as
risky as Italian bonds again.
Meanwhile, the Catalan crisis also pulled down the Stoxx
Europe 600, which dropped
further after the announcement, closing 0.6% lower on the
day, with the Spanish IBEX-35
and the Italian FTSE MIB falling 0.7% and 1%, respectively.
Data by fund tracker EPFR
Global show that, since the
start of September, funds that
invest in Spanish and Italian
equities have had net outflows
of 7.9% and 3.4% of their assets
Southern Europe Suffers Outflows
A push for independence by the Spanish region of Catalonia has hampered the performance
of bonds and stocks not only in Spain, but in Italy as well.
Money has been leaving Spain
Net flows since the start
of September, as a share of
assets under management
0.4%
Western Europe
Italy
–3.4%
–7.9%
Spanish debt now trades
closer to Italy's
Yield premium on two-year
sovereign bonds, compared
with German debt of the
same maturity
Spain
1.2 percentage point
1.0
0.8
0.6
Italy
0.4
Spain
0.2
Belgium
0
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
3%
Southern European
stocks are lagging
Percentage change over
the past month
2
S&P 500
1
Stoxx
Europe
600
0
–1
FTSE MIB
–2
IBEX-35
–3
–4
Oct.
Sept. 19
Southern European stocks'
underperformance versus
Northern European ones is
now at 2012 levels
Performance of Spanish and
Italian stocks combined versus
German and French ones
0%
–8
–16
–24
–32
–40
2007 ’08
’09
’10
’11
’12
’13
’14
Sources: EPFR Global (flows); Tradeweb (yield premium); FactSet (stocks); Morgan Stanley Research
under management, respectively, even as funds of global
and European equities recorded net inflows.
Catalan companies such as
real-estate firm Inmobiliaria
Colonial SOCIMI SA, Banco de
Sabadell SA and biotech Grifols
SA led the losses among Span-
ish stocks, even though most,
except Grifols, have said they
would move their legal headquarters outside the region.
While the gap between
Spanish and German 10-year
bonds hasn’t widened as much,
it is “likely to come under
pressure if the situation in
Spain becomes tense, but
should be an interesting opportunity over a medium-term
horizon,” Italian bank UniCredit said in a research note.
Short-term debt often tumbles in response to political
events, because investors see
them threatening finances im-
’15
’16
’17
THE WALL STREET JOURNAL.
mediately, but not necessarily
in the longer term. This isn’t as
apparent in longer-term debt.
However, both Spanish and
Italian 10-year bonds are performing badly compared with
Northern European countries.
Investors say that the European Central Bank’s huge
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Email: heard@wsj.com
Unilever’s Cost Cuts Miss Mark
The shine may be coming
off the cost-cutting model
that has gotten investors in
consumer-goods giants so excited.
Unilever, the owner of
brands like Dove soap and
Ben & Jerry’s ice cream,
posted weak third-quarter
results Thursday. Organic
sales growth, which strips
out currency movements and
portfolio changes, slipped to
2.6%, the lowest since the
emerging-market wobbles of
2014. Management needs a
particularly impressive final
quarter to make the guidance
of 3% to 5% growth given in
April in response to an opportunistic and short-lived
bid from U.S. food group
Kraft Heinz.
Emerging markets improved, but this was more
than offset by problems in
Europe and the U.S. Some of
the problems have been external: A wet European September was unhelpful for
Unilever’s ice-cream business, and management also
cited disruptions from the
wild North American hurricane season.
0.5%
Global
Food for Thought
Forward price/earnings multiples
30 times
Kraft Heinz
merger announced
Unilever
25
Kraft Heinz
Kraft Heinz
bid for Unilever
20
15
2012 2013
2014
2015
2016
2017
THE WALL STREET JOURNAL.
Source: FactSet
But there also have been
self-inflicted wounds. Ben &
Jerry’s has rapidly lost U.S.
market share to upstart lowcalorie ice-cream brand Halo
Top, while Unilever’s European deodorant business has
had to contend with cutprice German rivals. Management admits the company as
a whole only grew in line
with its markets, having historically outperformed them.
One question is whether
this loss of competitive mo-
mentum is the result of the
company’s cost-cutting regime. Kraft Heinz’s bid
prompted Unilever to unveil
a new 20% target for its underlying operating margin.
One of the levers the AngloDutch group is pulling is to
slash new ad production by
30%. Management is adamant that trimming marketing has nothing to do with
the third-quarter slowdown.
It is too early to judge
Unilever’s cost cuts this year
a success or failure. However,
it is notable that Kraft Heinz,
which inspired it, isn’t quite
the role model it once
seemed. Organic sales have
continued to fall and the
lean-budgeting machine has
run out of road. Its shares
now change hands at a discount to Unilever’s for the
first time since Kraft was
taken over by the cost cutters at Heinz in early 2015.
The simplest explanation
for Unilever’s weak thirdquarter growth is that brandbuilding is a less predictable
business than it used to be.
As digital replaces primetime TV, ads might go viral
on social media or they
might disappear into cyberspace. This new landscape
has sprouted new brands,
like Halo Top, that have
taken bites out of big incumbents like Unilever, Procter &
Gamble and Nestlé.
Whether or not cost-cutting is an appropriate solution, investors need to stop
thinking of consumer-goods
groups as the reliable growth
engines of yesteryear.
—Stephen Wilmot
OVERHEARD
Nick A. Caporella needs to
kick back and have a LaCroix.
So it seems from the
press release the CEO of National Beverage Corp., the
maker of the popular flavored
bubbly water, issued Thursday in response to “recent
market volatility” that has
sent the company’s shares
down 19% in the past month.
Mr. Caporella has an idea
why. “Are perpetrators stimulating movement by stating
falsehoods, creating rumors
and deliberately manipulating
FIZZ value? We think so!”
FIZZ is the company’s stock
ticker.
“If you have the opinion,”
he continues, “that I, Nick A.
Caporella, am angrily exercised while extremely fortunate to be guiding FIZZ, your
opinion is quite accurate!” Indeed, it would be difficult for
a reader to get a different
impression—the brief press
release contains more than a
dozen exclamation points.
But National Beverage investors had a flat response—
shares were down less than
0.1% on Thursday.
American Express’s Chenault Leaves Unfinished Business
American Express Chief
Executive Ken Chenault, beloved by the firm’s investors,
is going out on a high note.
His successor will have to
contend with fundamental
questions about the company’s business.
AmEx’s business has
shifted massively over the 16
years of Mr. Chenault’s tenure, so much so that he cited
“a long tradition of reinvention” at the company in
some parting comments on
an analyst conference call.
“He’s a great long-term
strategic thinker who marries that with disciplined
and consistent execution,”
said Matt Vetto, portfolio
manager at Douglas C. Lane
Charge Back
American Express share price
over the past five years
$100
90
80
70
60
50
2012 ’13
’14
’15
’16
’17
Source: FactSet
& Associates, which has
steadily increased its stake
in AmEx over the past few
years.
Under Mr. Chenault, AmEx
loosened its focus on travel
and entertainment to service
more general spending. This
meant lower fees per transaction but much higher volumes, Mr. Vetto said. It also
expanded beyond charge
cards that are paid in full every month, coming out with
traditional balance-carrying
credit cards. Perhaps most
dramatically, it converted to
a bank holding company during the financial crisis in
2008 and subsequently began taking deposits online
from retail savers.
Mr. Chenault faced new
challenges over the past couple of years, notably rising
competition from huge
banks. AmEx’s partnership
with Costco passed to Citigroup, which was willing to
offer more generous terms.
The company’s response
included deep cost cuts, a
marketing push to reinforce
the brand, enhanced rewards
on its premium Platinum
cards, and new partnerships,
such as one with Hilton
Worldwide Holdings. Investors liked the results, sending AmEx shares up 50%
over the past year.
But fundamental challenges remain. For instance,
as Chief Financial Officer
Jeffrey Campbell acknowledged on the conference call,
many competitors’ cash-back
cards simply offer customers
better economic terms.
Nonetheless, he said AmEx’s
cash-back cards are doing
fine thanks to a strong brand
and good customer service.
The second challenge is
the risk that credit cards
themselves and the networks
they run on could be disrupted by an evolving payments landscape. The fact
that PayPal, with one-third
of AmEx’s annual revenue,
now has nearly the same
market capitalization shows
investors are starting to
price in such a future.
Mr. Chenault’s successor,
Stephen Squeri, is an AmEx
insider with 32 years at the
company. To be successful,
he will have to carry on Mr.
Chenault’s legacy of constant
reinvention.
—Aaron Back
bond-buying program—officials currently buy €60 billion
(about $71 billion) of eurozone
debt every month—is keeping
bonds in Southern Europe
shielded from political risk.
But some think Spain’s debt
would have performed better if
it weren’t for Catalonia’s independence bid.
The Spanish economy had
been outperforming its peers,
and many analysts believe ratings companies would have
soon upgraded its debt.
Myles Bradshaw, head of
global aggregate fixed income
at Amundi, said Spain has “the
potential to trade more like
Belgium.”
On Tuesday, Moody’s Investors Service said a worsening
of the Catalan situation could
affect Spain’s credit rating in
the future. “While we continue
to believe that the probability
of Catalan secession remains
low, the very rapid escalation
in tensions together with the
ongoing political impasse suggest that it has risen somewhat in recent weeks,”
Moody’s said in a report.
The impact has been bigger
on stock markets, especially
Spanish and Italian indexes,
because investors fear the separatist spat could hurt the economic recovery in Spain and
other eurozone nations.
Analysts at Morgan Stanley
estimate that the performance
of Southern European stocks
relative to Northern European
ones is now down to levels not
seen since the eurozone’s sovereign-debt crisis in 2012. Over
the past month, the Spain’s
IBEX-35 and the Italian FTSE
MIB have lost 1.7% and 1.3%,
respectively, as the Stoxx Europe 600 and the S&P 500 rose
1.8% and 2.2%, respectively.
“As strong as the eurozone
recovery currently looks…[we]
think Catalonia and lack of further eurozone reforms could
easily dent the recovery,” said
Carsten Brzeski, economist at
Dutch bank ING, in a research
note Thursday.
WSJ.com/Heard
Box’s Gains
Stacking Up
In the Cloud
Young tech companies like
to move fast and break
things. But Box Inc. has discovered the value of taking
things slow and steady.
When Box went public in
2015, it looked like just another fast-growing, moneylosing Silicon Valley fledgling
about to get a brutal comeuppance from the market.
And it did. After listing
shares at $14 and jumping
above $23 on the first day,
Box shares folded fast as investors looked askance at the
company’s huge costs relative to the revenue it was
booking for its cloud-based
collaboration software. By
the end of its first year on
the market, Box was trading
for less than $10 a share.
The stock has since rebounded. The company has
managed to beat its own revenue growth forecast each
quarter since going public,
while slowly reducing costs.
Cloud software providers
often have to make big expenditures up front to convince large companies to
switch over from legacy systems. Box, which is targeting
the document-management
segment, is no exception.
When the company filed to
go public in 2014, it was expending about $1.38 in salesand-marketing costs for every $1 of revenue. That ratio
has fallen to about 61 cents
per revenue dollar, for the
12-month period ended July
31.
The steady improvements
have been noticed. About
83% of analysts covering Box
now rate it as a buy. Box has
jumped 48% for the year, a
bit below a group of 55 cloud
software stocks tracked by
KeyBanc Capital Markets.
That leaves room for further
gains, provided the company
keeps checking the right
boxes.
—Dan Gallagher
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Billy Collins on
finding poetry in a
childhood home in
Queens, N.Y. M14
HOMES
|
MARKETS
|
PEOPLE
|
MANSION
UPKEEP
VALUES
|
NEIGHBORHOODS
|
REDOS
—Saint Jerome
|
SALES
|
FIXTURES
THE WALL STREET JOURNAL.
|
BROKERS
Friday, October 20, 2017 | M1
ALANNA HALE FOR THE WALL STREET JOURNAL (3); EDWARD LINSMIER FOR THE WALL STREET JOURNAL (TOP INSET)
© 2017 Dow Jones & Company. All Rights Reserved.
|
‘Early impressions are hard to
eradicate from the mind. When once
wool has been dyed purple, who can
restore it to its previous whiteness?’
NEW PLACE In San Francisco, Rebecca Schumacher and Guido Piccinini, below left and right, bought a corner at the Pacific, a 76-unit building, in the Pacific Heights neighborhood. Above, the living room
and kitchen. Ms. Schumacher wouldn’t disclose sales price, but a similar unit is listed for $4.87 million, according to Redfin.
The Model of Luxury Living
To sell luxury condos faster and for more money, developers target affluent buyers
with model units loaded with brand-name goods and high-end finishes.
BY ALINA DIZIK
VISUAL AID They weren’t sure they could downsize to a condo. But
seeing model units helped them figure out how to use the space.
WHEN POTENTIAL BUYERS tour a model luxury apartment in West New York, N.J., they can
plop on the couch or grab sparkling water from
the fridge. They can’t, however, brush their
teeth with the electric toothbrush or scrub the
toilet with the marble-clad brush next to it—
none of the plumbing fixtures work. But it’s
homey touches like these that make a model
unit feel “lived in”—and help make a sale.
“You want customers to daydream a little bit.
Everyone always buys what they see,” says Alexander Hovnanian, developer of Nine on the Hudson, a 13-story luxury-condo project to be completed this year, with units ranging from about
$675,000 to $6 million.
Please turn to page M6
RETHINKING ROOMS They created a formal dining area—with a table
that seats eight—out of one of the condo’s three bedrooms.
THE HIGH-RISE OF THE CENTURY
INSIDE
Built in the 1960s to showcase the capacities of aluminum, Century City attracted a bevy of movie stars and was a
favorite of Ronald Reagan. Now billions are being invested to attract more Los Angeles natives to high-rise living.
BY KATY MCLAUGHLIN
SWEDE DEAL
A mansion once home
to army officers M4
MICHAL CZERWONKA FOR THE WALL STREET JOURNAL
MOVIE STAR Burt Lancaster
had a condominium in Century City, as did Ruth and Elliot Handler, co-founders of
the Mattel toy company.
Ronald Reagan, while he was
president, maintained his
“Western White House”
there. Today, celebrities including actor Matthew Perry
and chef Nobu Matsuhisa
look over Los Angeles from
their Century City properties
in the sky.
For most, luxury living in
Los Angeles evokes visions
of sprawling estates. But
since the 1960s, Century City
has offered an alternative,
exemplifying each decade’s
notion of the ultimate in
high-rise living. Today, with
billions of dollars of investment coming to the area, developers are attempting to
sell Century City’s glamorous
past even as they launch
new properties with lavish
amenities, views and prices.
“My grandparents saw the
apartment and bought it on
the spot,” said Joshua Flagg,
of the late Edith and Eric
Flagg, who purchased a
penthouse in Century Tow-
SHORT LEASE
Making sense of
London leaseholds M3
PAST AND PRESENT The Century Plaza Hotel, right, is being redeveloped; the ultra-luxury Century is immediately to its left.
ers in 1976. Ms. Flagg was a
Holocaust survivor and fashion designer whose eponymous company made
women’s sportswear. Mr.
Flagg, today estate homes
director of Rodeo Realty in
Beverly Hills, said he grew
up visiting the building and
remembers neighbors like
the Handlers.
Century City, a roughly
180-acre neighborhood between Beverly Hills and
Santa Monica, was designed
in the 1960s as a showcase
for high-rise construction
and modern, urban living. In
1960, movie studio 20th CenPlease turn to page M8
SERVICE PLEASE!
What to look for in a
mortgage servicer M5
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M2 | Friday, October 20, 2017
THE WALL STREET JOURNAL.
NY
MANSION
PRIVATE PROPERTIES
FROM TOP: PICTOMETRY; SIMON BERLYN (2); WILLIAMS NY (RENDERING)
Saudi Royal Seeks $85 Million in Beverly Hills
A 6.7-acre Beverly Hills compound
owned by a member of the royal family of Saudi Arabia is being quietly
shopped for $85 million, according to
two people with knowledge of the deal.
Joyce Rey of Coldwell Banker Previews International, who has the listing, said she is dealing with the director of the holding company that
controls the property and couldn’t
comment on the identity of the
owner. People with knowledge of the
deal said the seller is a second-generation member of Saudi Arabia’s ruling
family, the House of Saud.
A spokesperson at the Consulate
of the Kingdom of Saudi Arabia in
New York didn’t immediately respond
to a request for comment.
The property is located on a
promontory on Ridgecrest Drive and
comprises two separate homes, each
with its own swimming pool and tennis court, according to property records and a person with knowledge
of the listing. It sits behind large
gates and overlooks the entire city
from the Pacific Ocean to downtown
Los Angeles.
The owner has already done extensive due diligence detailing the
possibility of building up to three estates of 30,000 square feet apiece
on the site, according to marketing
materials.
The main home, which is marketed as a tear-down, was built in
1961 and has three bedrooms and
four bathrooms, according to data
from real-estate website Redfin.
The holding company, Ridgecrest
Holdings, has owned the property
since 1996, records show, though it
wasn’t clear how much it paid.
Entertainment mogul Jeffrey
Katzenberg, the former CEO of
DreamWorks Animation, lives next
door, at a property he bought for
about $35 million in 2009, records
show.
—Katherine Clarke
IT’S A STEAL: A NEW YORK PENTHOUSE
FOR SALE ASKING ‘ONLY’ $37.5 MILLION
A penthouse apartment on East
57th Street will come on the market
for $37.5 million. While that’s hardly
inexpensive, it’s far less than penthouses at nearby condo towers on
the strip known as Billionaire’s Row.
The pricing comes amid a slowdown at the highest echelons of New
York real estate. “Our developers
have always been strategic and realistic about pricing,” said Pamela
D’Arc, the building’s sales director.
The six-bedroom, seven-bathroom
unit, at 252 East 57th Street, consumes the entire 65th floor. It comprises 8,139 square feet of interior
space, with a massive living and dining area for entertaining spanning the
north facade and a master suite
tucked away on the south side. The
views include the George Washington
Bridge to the north and the Verrazano Bridge to the south.
The condominium tower, seen in a
rendering below, was developed by
World Wide Group and Rose Associates. It was recently completed, and
residents have already begun moving
in. The developers held off on listing
the penthouse until it was completed,
Ms. D’Arc said.
The building’s location between
Second and Third Avenues has made
it a more affordable alternative to
towers directly south of Central Park,
which include One57 at 157 West
57th Street and 220 Central Park
South, where the penthouses are
priced in the hundred of millions.
Hedge-fund executive Bill Ackman
paid $91.5 million for the penthouse
at One57 in 2015, records show.
Ms. D’Arc said sales have progressed relatively quickly at the building, and units are more than 70%
sold. Buyers include shoe mogul
Steve Madden, who paid $12.2 million for a unit.
—Katherine Clarke
LOS ANGELES ART DEALER LISTS HOME FOR $15 MILLION
Margo Leavin, a well-known Los
Angeles art dealer, is listing her Hollywood Hills home for $15 million.
The 8,500-square-foot contemporary house sits on 1.8 acres in La
Brea Terrace, a gated community in
the hills. The five-bedroom, sevenbathroom house features views of
Hollywood and downtown Los Angeles from an array of floor-to-ceiling
windows. It has a large pool and a
spa, an expansive lawn and an outdoor kitchen.
“It’s an authentic 1941 Moderne,
around the same period as Art Deco,”
said listing agent Brett Lawyer of Hilton & Hyland, who said Ms. Leavin
bought the house in 1992. The curved
walls and terraces exemplify the style,
he said.
Ms. Leavin opened her eponymous
art gallery in 1970 and closed it in
2013, according to the Getty Research
Institute. In the early years, she became known for representing pop artists and alternating between East
Coast and locally-grown artists. In
2016, Ms. Leavin sold the West Hollywood building that housed her gallery as well as four other contiguous
buildings for $40 million, according to
people familiar with the transaction.
According to public records, the
buyer was a limited-liability company
associated with Megan Ellison,
founder of Annapurna Pictures. She
is the daughter of Oracle co-founder
Larry Ellison.
In July last year, the University of
California at Los Angeles’s School of
the Arts and Architecture announced
that Ms. Leavin donated $20 million
to rebuild and expand its art studio
facilities.
La Brea Terrace is a gated road
that loops around in a half circle, just
east of Runyon Canyon Park, a 130acre patch of wilderness in the Hollywood Hills. The location is highly coveted, said Mr. Lawyer, for its privacy
and proximity to both nature and
Hollywood. Ms. Leavin, 81, declined to
comment.
—Katy McLaughlin
See more photos of notable homes at WSJ.com/Mansion. Email: privateproperties@wsj.com
AUCTION
NOVEMBER 15
PA L M B E AC H
OCEAN TO INTRACOASTAL
First Time on the Market in 30 Years
SCENIC RYE ESTATE
ON 4+/- ACRES
3 Club Road, Rye, NY
Built by Addison Mizner in the early 20th Century, this private
compound sits on nearly 2.5 acres of irreplaceable Palm
Beach oceanfront land. High on a ridge, the home is situated
with optimum views to the west over the Intracoastal, while
the eastern facing rooms are bathed by Atlantic Ocean
sunrises. Nearly 300’ of beach & oceanfront are accessed by
a private gate & wooden walkway, one of many pathways that
wind through the entire estate and lead to hidden sculpture
gardens, ponds and pools. Offered at: $46,000,000
Potential 3-Lot Subdivision
On Prestigious Apawamis Club Grounds
• 13,650+/- SF Home in Exceptional Condition
• 7 Spacious Bedrooms, 8 Full & 3 Half Bathrooms
• Separate Caretaker Apartment
• 5-Car Heated Garage, Pool, Theatre, Game Room & More
• Renovated and Expanded in 2009
• 1/2 Mile Walk to Train and Downtown
Live in This Exceptional Estate or
Use Subdivision to Generate Income!
MadisonHawk.com/Auctions/Rye
JIM MCCANN, Broker Associate
561.296.8720 | jim.mccann@corcoran.com
800.547.1045
Equal Housing Opportunity. All information furnished regarding property for sale or rent or regarding
financing is from sources deemed reliable, but Corcoran makes no warranty or representation as to the
accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed
propertyconditions,andwithdrawalofthepropertyfromthemarket,withoutnotice.Alldimensionsprovided
are approximate. To obtain exact dimensions, Corcoran advises you to hire a qualified architect or engineer.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | M3
FROM TOP: JOHN D WOOD; SOTHEBY’S INTERNATIONAL REALTY; STRUTT & PARKER
MANSION
BELGRAVIA On a coveted street, this two-bedroom apartment is listed for about $862,000. Estate agent John D. Wood says the price reflects the fact that there are only six years left on the lease.
THE MARKET
In London, a Short Lease on Luxury
Buyers must move out in a few years—or pay a large sum to stay on—at some of the city’s properties
BY RUTH BLOOMFIELD
IN LONDON’S sought-after Eaton
Square, a two-bedroom apartment
usually sells for at least $2 million.
But just listed is an elegant twobedroom in one of the square’s
coveted townhouses, with an asking price of about $863,000.
The catch? The buyer will need
to give it up in just over two years.
The property, like most of central London’s historic apartments,
is being sold on a “leasehold” basis for a fixed period of time. In
many cases, these leases last a
comfortable length of time—a
lease of 80 years or more is considered a safe buy in the British
capital.
But in December of 2019, this
apartment will have to be returned
to its freeholder, the Grosvenor Estate. The estate manages the land
portfolio of the Duke of Westminster, whose holdings include Eaton
Square and most of the surrounding Belgravia neighborhood.
If the apartment’s buyer hopes
to stay longer, he or she will need
to spend another $1.13 million to
buy a new 20-year lease.
To buyers unaccustomed to
Britain’s leasehold system, which
applies to most period flats and
some houses, the deal might sound
like madness—throwing away
hundreds of thousands on a property only to give it up in the immediate future or pay a huge bill
to retain it.
But according to Tim Macpherson, partner and head of London
residential at Carter Jonas estate
agents, for “an admittedly narrow
group of buyers” a short lease can
be preferable to a long one.
“If you take Eaton Square,
which I would say is the best
square in Europe, certainly in England … [buying a short lease apartment] makes living there far, far
more accessible than it would otherwise be,” he pointed out.
European buyers who are accustomed to renting rather than owning a home are often willing to
take on short-lease properties,
said Mr. Macpherson, particularly
if they only plan to be in the British capital for a few years.
The Eaton Square apartment’s
asking price works out to around
$33,200 per month, which is at the
high end for a rental apartment in
the Belgravia neighborhood.
Seniors are another group interested in short-lease property. David Adams, director of Humberts
estate agents, based in Mayfair, is
currently helping an older client
who specifically wants a shortlease property. “My purchaser is of
an age where she doesn’t see the
need to buy a lease which outlives
her,” he explained.
Simon Godson, a director of
JLL, recently sold a three-bedroom
apartment on Cadogan Gardens,
Knightsbridge, to a woman “of a
certain age” who was downsizing
from a large house. The $3 million
apartment’s lease has around 25
years left to run. Rather than try
to extend it, the buyer plans to live
in the property for as long as she
needs to, and then will let her children and grandchildren decide
what to do with it.
Mr. Adams says some property
developers have also started to
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EATON SQUARE
A two-bedroom
apartment in the
building above,
listed for $863,00,
has a lease of
about two years; a
two-bedroom on
Cranley Gardens,
left, listed for
$1.984 million, has
31 years left on
its lease.
buy up short-lease properties in
order to cut their entry costs. Not
only are the properties cheaper to
buy, but the buying taxes are
lower. The Stamp Duty levied on
second-home owners buying a £2
million property (about $2.66 million) in England and Wales is now
£213,750, or about $284,000. By
buying a less expensive short-lease
property, this bill is cut dramatically. A £600,000 (about $797,000)
second property is subject to
£38,000 tax, or about $50,000).
Buyers have to pay Stamp Duty
if they choose to extend their
lease, but developers will often try
to upgrade the property and find a
new buyer before the lease needs
to be renewed.
Other short-lease buyers are 30and 40-somethings whose property ambitions are loftier than
their budgets. This class of buyer,
said Mr. Godson, looks for homes
with 30 or 40 years left on a lease,
in the hopes that in the future inheritances or pay rises will allow
them to extend it.
James Wyatt, a chartered surveyor and director of Parthenia
Valuations, warns that banks are
often reluctant to lend on short
lease properties; he said the majority of purchases are in cash or
via private banks.
And leaseholders must pay an
annual fee—called ground rent—to
their landlords. This can be a nominal £100 a year or reach into several thousand pounds.
Mr. Wyatt classifies a short
lease as anything under 80 years.
The process of extending a lease
typically takes around nine months
to complete and costs around
$13,000 in professional fees.
There is another option for
leaseholders. They have the legal
right to buy out the freehold of
their property, but they must get
at least half the other leaseholders
in their building to follow suit,
which can prove extremely difficult to organize.
Mr. Macpherson said that it is
not only the elderly, temporary, or
aspirational who take an interest
in this most unusual of property
sectors. “It can be incredibly
wealthy people for whom it is not
tax-efficient to bring all that
money in at once,” he said. “It is a
little like a delayed payment plan.
You pay some of the cost up front
and some later down the line.”
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M4 | Friday, October 20, 2017
NY
THE WALL STREET JOURNAL.
MANSION
LIVING HISTORY
A Swedish Mansion, Once an Officer’s Perk
Bosgarden Manor, with a renovated 4,000-square-foot, 18th-century mansion, is for sale
A SWEDISH ESTATE that
has been home to a nobleman, army officers, wealthy
farmers, a politician and a
car executive over the centuries is on the market.
Bosgarden Manor, east of
Gothenburg, is a property of
nearly 4 acres that includes
a main residence, a guesthouse and stables. It is listed
for 8.9 million Swedish kronor, or about $1.1 million.
The 4,000-square-foot,
three-story mansion that
dates back, in part, to 1752,
is the centerpiece of the estate. Originally intended as
spacious lodgings for an officer in the local army regiment, the building later
housed generations of gentlemen farmers before falling
into disrepair in the
mid-20th century.
The manor house got a
makeover in the 1990s, when
a retired car executive and
his fashion-designer wife
turned it into a luxurious
country home.
Anders Paulsson, an executive at Volvo, and designer
Nina Paulsson-Amark,
bought the estate in 1998
from a family that had done
some restoration work.
“It was livable,” says Ms.
Paulsson-Amark, of the main
house when she and her husband first saw the property,
“but it was more like an ordinary farmhouse.”
The two, who had relocated from a 20th-century
villa in Gothenburg’s exclusive Örgryte neighborhood,
embarked on a dramatic upgrade of Bosgarden Manor,
ANDERS BERGSTEDT FOR THE WALL STREET JOURNAL (5)
BY J.S. MARCUS
FOR THE AGES The property has a mansion, above center, dating to 1752; stables, on left; and guesthouse, on right. The threestory home has one bedroom. Right, a sitting room. Below, the
foyer. The estate is listed for about $1.1 million.
preserving some historic details—such as the home’s
towering tile stoves—and installing an array of high-end
add-ons. They put in a new
designer kitchen from Sweden’s Kvänum, and turned a
300-square-foot guest room
into a master bath.
The home now has one
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Elizabeth Mercedes Berk
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Julianne Bond
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Michele Turnquist
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Richard Deacon
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Richard Deacon
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$2,200,000 CAD
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Richard Deacon
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Lake Placid, NY: Immaculate 4 BR, 4 bath mountain home,
spectacular 12.7 acre setting, views of Whiteface, Sentinel
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Engel & Völkers Lake Placid
Colleen Holmes
+1 518-523-4404
evusa.com • evcanada.com
©2017 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. All information provided is deemed reliable but is not guaranteed and should be
independently verified. Engel & Völkers and its independent License Partners are Equal Opportunity Employers and fully support the principles of the Fair Housing Act.
bedroom, but other rooms,
including a library and a
study, can be converted,
says Ms. Paulsson-Amark.
She is selling the property
following the death of her
husband this year.
The estate is on a parcel
of land that once belonged
to 14th-century Swedish nobleman Bo Jonsson Grip.
His vast holdings included a
good portion of Sweden and
all of Finland.
The estate later became
the property of a convent
before it was transferred to
the Swedish Crown after
the Protestant Reformation
and Sweden’s dissolution of
monasteries in the 16th
century. In the 18th century,
says Swedish historian
Brita Planck, the property
was awarded as a bonus to
the lieutenant colonel of
the prestigious Älvsborg
army regiment. The property, with a likely array of
tenant farmers, provided income for the officer, who
could live there during his
service.
Baron Carl Sparre
(1723–1791) was the home’s
first resident. He oversaw
the building of the main
house in the 1750s. He belonged to “one of Sweden’s
oldest aristocratic families,”
says Dr. Planck, a senior
lecturer at the University of
Gothenburg. His career culminated in the governorship of Stockholm.
Dr. Planck has studied
Sparre’s correspondence
with his wife, which refers
to the manor house as a site
of domestic bliss. Following
his wife’s death in 1780, he
embarked on a scandalous
liaison with Julie Eckerman,
a Swedish courtesan and reputed Russian spy.
Dr. Planck believes the
home may have started as a
one-story, with upper floors
and bedrooms added later.
She cites the difference in
height between the ground
floor, where ceilings are under 10 feet, and the grander
second floor, where they
are almost 11 feet. A thirdfloor attic is lined with
large stones—a 19th-century version of a firewall.
Starting around the middle of the 19th century, the
property, still formally in
possession of the Swedish
Crown, was rented to increasingly wealthy farmers,
says Dr. Planck.
RESTORED Nina Paulsson-Amark, top, in her home. The dining
room, above, has paintings she collected during her travels.
“In the 19th century, the
aristocracy was going down
in Sweden, and the farmers
were going up.” Sweden began exporting grain, especially oats, and “farmers became really rich.”
Crown-owned estates
could be rented for a nominal fee, with the lessees taking all the profits. From
1910 to 1942, Carl Bengtsson,
a farmer and banker, rented
the estate. He went on to become a member of the upper
chamber of the Swedish parliament while residing there.
Today, the home is decorated with paintings from
across of the continent.
“I’m an aesthete,” explains
Ms. Paulsson-Amark, when
asked about her vast and
varied art collection. “I buy
everywhere.”
A few years after buying
the property, the couple
built a gazebo for their annual August crayfish parties,
a Swedish tradition involving glasses of schnapps,
funny hats and platters of
countless crayfish harvested
from local lakes and
streams.
Ms. Paulsson-Amark considers the second-floor salon, with its plush white furniture, her go-to spot. In the
afternoon she serves coffee
there, and in the evening she
goes there to unwind.
“When we entertained, we
assembled in the downstairs
salon,” she says, “but we always ended up here.”
Stefan Essunger of Skeppsholmen Sotheby’s International Realty is handling the
sale.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Friday, October 20, 2017 | M4A
NY / NE
Darien, CT
BOTANICAL OASIS
$6,750,000 | Web#99190039
Eileen B. Hanford 203.253.0995
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Gramercy Park, NYC
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$4,500,000 | Web#17408256
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reliable but is subject to errors, omissions, change or price, prior sale or withdrawal without notice. No representation or guaranty is made as to accuracy of any description. All measurements and
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M4B | Friday, October 20, 2017
NY / NE
THE WALL STREET JOURNAL.
danielgale.com
Atlantic Beach NY — “Larabay”
Center Moriches, NY — Bayfront Estate
SD #15. MLS# 2937338. $6,900,000.
Sheilah Hassenbein, 516.678.1510, c.516.603.3099
Donna O’Reilly Einemann, 516.678.1510, c.516.509.1137
Scott Wallace, 516.678.1510, c.516.521.4065
SD #33. MLS# 2931490. $4,495,000.
Jacqueline Doskoez, 631.288.1050 ext.13
c.631.603.5584
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Lloyd Harbor, NY — Coveted Location
Garden City, NY
Extraordinary opportunity to own 1.07 acres of spectacular jetty-protected oceanfront. Custom-built and
designed in 2016; fully furnished and turn-key. SD #2. MLS# 2967896. $9,750,000
Elyse Weissman, 631.288.1050 ext.22, c.516.381.0917
CSH SD #2. MLS# 2971131. $1,989,000.
Margy Hargraves, 631.692.6770 ext.227
Kimberley Como, 631.692.6770 ext.231
SD #18. MLS# 2977371. $1,399,000.
Maureen Lagarde, 516.248.6655, c.516.850.7812
Locust Valley, NY
Mill Neck, NY
Manhasset, NY — Stone Hill
Sands Point, NY
SD# 3. MLS# 2944286. $1,795,000.
Mary Ann Wheatley, 516.759.4800 ext.158
c.516.445.8042
SD #3. MLS# 2942454. $2,299,000.
Amy W. Tansill, 516.759.4800 ext.153
c.516.318.2397
SD #6. MLS# 2949996. $3,788,000.
Rosalyn Hu Meyer, 516.627.4440 ext.361
c.917.887.2687
SD #4. MLS# 2974134. $2,199,000.
Margie Miller 516.883.2900 ext.172. c.516.967.9060
Sea Cliff, NY
Sea Cliff, NY — Endless Love
Upper Brookville, NY — Fabulous New Price
Upper Brookville, NY —“Sunstar Hill”
SD #1. MLS# 2887606. $4,398,000.
Damian Ross, 516.759.6822 ext.113, c.516.369.5868
SD #1. MLS# 2954803. $1,699,000.
Carolina Boucos, 516.674.2000 ext.321
c.516.835.1804
SD #3. MLS# 2866664. $3,495,000.
Anita K. Meltzer, 516.759.4800 ext.171
c.516.906.1593
SD #6. MLS# 2795429. $29,985,000.
Barbara Candee, 516.759.4800 ext.136
c.516.456.0330
Bonnie Williamson, 631.427.6600 ext.210
c.516.443.5958
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The complete terms are in an Offering Plan available from Sponsor. File No. CD17-0068. Artist Rendering.
Daniel Gale Sotheby’s International Realty
Each office is independently owned and operated. We are pledged to provide equal opportunity for housing to any prospective customer or client, without regard to race, color, religion, sex, handicap, familial status or national origin.
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THE WALL STREET JOURNAL.
Friday, October 20, 2017 | M5
MANSION
JUMBO JUNGLE | ROBYN A. FRIEDMAN
EMPHASIZE THE ‘SERVICE’ IN SERVICERS
Some
mortgage
servicers
have a bad
reputation
for service:
In a survey
released earlier this year, unhappy mortgage customers
said their servicers were
more focused on profit than
on their customers.
Mortgage servicers are
the firms that collect mortgage payments on behalf of
the mortgage owner or investor. They also handle related services, such as paying taxes and insurance on
mortgaged properties. Some
lenders retain the servicing
of their loans, even if they
sell them to investors as
mortgage-backed securities.
Others lenders use independent servicers to manage
their mortgages.
Even customers who have
substantial mortgage experience can find dealing with a
servicer to be a frustrating
experience.
Craig Martin, senior director of the mortgage practice
at J.D. Power, a market-research company, battled with
his servicer for a month to
get private mortgage insurance removed when his loanto-value ratio fell below the
80% threshold. “It was only
through my wife’s doggedness that we got answers,”
he says. His savings: $100
per month.
In the J.D. Power 2017 U.S.
Primary Mortgage Servicer
Satisfaction Study, Detroitbased Quicken Loans ranked
highest in mortgage-servicer
satisfaction, followed by Regions Mortgage and Huntington National Bank. Specialty
lenders USAA and Navy Fed-
CHRIS GASH
How to reduce the stress of dealing with a mortgage servicer, the firm that collects mortgage payments on behalf of lenders and investors
eral Credit Union actually
earned higher scores than the
top-ranked servicers but
weren’t eligible for ranking
because they don’t serve the
general public. The survey
was conducted in March and
April, with results based on
the experiences of 7,374 mortgage-servicing customers.
“Quicken is one of the
best at communications,” Mr.
Martin says. “They come
across as very connected to
the customer and very customer-focused.” Quicken also
uses technology that is con-
sumer-friendly—tools like
videos to welcome new servicing customers or explain
mortgage escrows.
The J.D. Power survey
found that customers hate
having their time wasted.
Overall satisfaction dropped
when customers felt their
time was being wasted; 66%
of those who believed their
time was wasted said they
waited five minutes or more
to speak with a customerservice representative.
Having a useful digital
presence is key, too—satis-
faction was higher among
those who visited the servicer’s website three or more
times in 12 months. Mobile
tools were associated with
significantly higher satisfaction as well.
Mike Malloy, vice president of servicing for Quicken
Loans, says that Quicken uses
technology to make servicing
easier and more understandable to its customers.
For example, each year
clients receive a personalized video containing an escrow analysis so they better
understand how tax and insurance escrows affect their
mortgage payment.
Mr. Martin, of J.D. Power,
says the top-ranked servicers
treat borrowers as if they
are customers—even though
the servicer’s customer is
technically the owner of the
mortgage. These servicers
benefit, though, by establishing a relationship with borrowers, who are then more
likely to give them mortgage
business in the future.
Here are a few considerations to make the relation-
ship with your servicer more
pleasant.
• Stay engaged. Don’t be
afraid to ask questions or
seek out opportunities to
benefit financially, whether
it’s paying off your loan
faster or seeking assistance
in the event of a potential
delinquency.
• Be diligent. Mistakes
happen. Payments are misapplied, or taxes or insurance
aren’t paid. Check your
mortgage account every
month to make sure your account has been credited
properly and that taxes and
insurance have been paid on
time. Keep meticulous records of any conversations
you have with employees of
the servicer, particularly if
they are about a delinquency.
• Stay local. Borrowers
have no control over who
their servicer is; the servicer
works for the owner of their
mortgage. However, since
jumbo mortgages are typically held in lender portfolios, borrowers who are particularly sensitive to
customer service may opt to
work with a lender that will
not only originate the loan
but also service it.
“A lender who simply
makes a mortgage and sells
it immediately is very different than somebody who
wants to maintain a relationship with you,” says Ira
Rheingold, executive director
of the National Association
of Consumer Advocates, a
nonprofit in Washington,
D.C. “But reputation is really
important to a lender who
retains servicing because
they want you to come back
to them if you want a homeequity loan or to refinance.”
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
M6 | Friday, October 20, 2017
MANSION
MANSION
THE MODEL OF LUXURY LIVING
BILL TAYLOR
DAYDREAMS
A model unit
at Nine on the
Hudson, a 13story luxurycondo project
in West New
York, N.J., to
be completed
this year, with
units ranging
from about
$675,000 to
$2.4 million.
‘You want customers to daydream a little
bit. Everyone
always buys
what they see,’
says developer
Alexander
Hovnanian.
FROM LEFT: DOROTHY HONG FOR THE WALL STREET JOURNAL (2); EMILY GILBERT
RESTORED In Washington, D.C., developer Andy VanHorn says he spent ‘hundreds of thousands’ of dollars to outfit three model units at the historic Wardman
Tower, above left. Above right and below, a bedroom and living room in model units. Prices range from $2.5 million to $9 million.
AKSEIZER DESIGN GROUP/JBG SMITH (3)
Continued from page M1
To close the deal in a competitive condo market, developers
carefully curate model units in
ways that go far beyond mere staging. Custom-designed closets, oneof-a-kind artwork, designer light
fixtures and brand-name luxury
goods are strategically chosen to
sell the promise of a lavish lifestyle
that comes with a luxury apartment. At times, the model units are
created in showrooms far from
building sites still abuzz with construction cranes and crews.
Condos typically sell faster or for
more money when potential buyers
can see completed models and not
just computer renderings viewed
online, says developer Andy VanHorn, who adds he spent “hundreds
of thousands” of dollars to outfit
three units at the historic Wardman
Tower in Washington, D.C. Before
32 units in the landmark building
were completely restored in 2016,
prospects could see a model unit
with herringbone floors, Thermador
kitchen appliances and spa-like
master bath—features that help up
the selling price, says Mr. VanHorn,
executive vice president of JBG
Smith. “As models are delivered,
people pay more.” Prices at Wardman Tower range from $2.5 million
to $9 million.
To target specific demographics,
developers make sure to create
various décor styles, often working
with multiple interior designers. In
smaller units, pared-down modern
furnishings with brighter colors
typically appeal to younger buyers,
while larger units often use more
traditional interiors to draw in
buyers who are downsizing from a
larger home, says Highlyann Krasnow, principal at the Design High,
a New York interior-design firm
specializing in new construction.
“We make some assumptions,”
says Ms. Krasnow, who adds that
the process can take six months
and can cost $100,000 or more.
In some cases, the units may be
sold as completely unfinished raw
space, with the models just an example of what can be done. In other
cases, the model unit gives buyers a
Friday, October 20, 2017 | M7
NY
FOR HOT NEWS AND GOSSIP,
IT’S WHO’S ON THE INSIDE THAT COUNTS!
COPYCAT Claudine Prowse paid $2.3 million for a onebedroom unit at Manhattan View at MiMA, a 147-unit
luxury building in New York’s Hudson Yards. The model
unit, bottom right, inspired the design of her living
room, top right, with a computer desk next to the TV.
look at the fixtures and finishes
that will be available in all of the
units in the building. Some buyers
opt to purchased furnished models.
In smaller units, carving out a
dining area from the main living
space increases interest, even if
condo owners skip the formal
space, Ms. Krasnow has learned.
She often uses light-colored marble
in kitchen and bathroom areas, even
though “it’s not the most durable.”
In each project, she works to
highlight the room layout, the use
of high-end flooring or extras,
such as surround sound or motorized window shades. Furniture and
wall colors are somewhat neutral
to appeal to a wider swath of potential buyers. “Even if that’s a little boring for you, you are not offended by it,” she says.
Developers say models help
smooth over a unit’s potential shortcomings, including odd or small layouts, street noise or lack of natural
light, says Mr. VanHorn. This year,
the Wardman developer turned an
extra-wide prewar-style corridor
into a “gallery” with multiple seating areas and custom art pieces to
help buyers imagine how to furnish
the $9.9 million penthouse unit. The
model helped highlight the vintage
layouts, where “not everything is
exactly perfect,” he says.
Walking through a model unit
may speed up a buying decision
because it evokes feelings of happiness, says Stephen Conroy, an
economics professor at the University of San Diego who studies realestate amenities.
Rather than looking at the unit
on paper, the experience of seeing
and feeling the various finishes
evokes “an emotion that’s going to
enter into the buying decision,” he
says. While model-unit purchases
are not tracked by real-estate services, 31% of buyer’s agents say
that staging a home increases its
value by 1% to 5%, according to a
2017 survey of 1,894 agents by the
National Association of Realtors.
For Alan Pellegrini, chief executive of an aerospace company,
walking through a model at Westlight, a 71-unit luxury condo building in Washington, D.C., helped
him realize that he would be
cramped in the unit he had in
mind. He paid “a couple hundred
thousand” to swap the two-bedroom he already had under contract for a similar condo in the
same building but with a den that
he plans to turn into a library.
“When you see the model, it shows
the potential,” he says. Mr. Pellegrini, 54 years old, declined to
disclose the price he paid for his
unit, but two-bedroom apartments
in at Westlight range from $1.26
million to $2.7 million.
After 12 years in a single-family
home, Rebecca Schumacher and
Guido Piccinini weren’t sure they
could downsize to condo living. But
after viewing the model units at the
Pacific, a 76-unit building, in San
Francisco’s Pacific Heights neighborhood, the couple was convinced.
The couple purchased a corner unit
and moved in this year, creating a
formal dining area out of one of
their three bedrooms. The model
units were designed with marble
slab kitchen counters, modern
moldings and custom headboards to
fit the master bedrooms. “They all
felt like home despite being smaller
spaces,” says Ms. Schumacher, 66, a
real-estate agent. Ms. Schumacher
wouldn’t disclose sales price, but a
similar unit is listed for $4.87 million, according to Redfin.
Choosing the right brands to
display in the models is key, says
Maile Aguila, senior vice president
of residential sales at Swire Properties. This Hong Kong-based developer is behind Brickell City Centre, a mixed-use development in
Miami. Potential buyers need to be
familiar enough with the designs
to feel as if they are walking into
their home, says Ms. Aguila. When
completed, many of the 390 residences at Brickell City Centre will
have interiors created by the Brazillian furnishings brand Artefacto,
which is familiar to the area’s
South American buyers, she says.
Many of the units are purchased
furnished, she adds, and typically
add roughly 12% to 15% to the sale
price. Units at Brickell City Centre
range from about $650,000 to $6
million.
Viewing the model in Manhattan
View at MiMA, a 147-unit luxury
building in New York’s Hudson
Yards, made a difference for Claudine Prowse, a 44-year-old biotech
executive. She was impressed by
the “smart use of space” in a onebedroom unit that she didn’t think
allowed for a dining room. Instead,
the one-bedroom model unit
showed a computer desk on the
same wall as her flat-screen television and created a built-in dining
nook from an unused corner near
the kitchen. Units at Manhattan
View range from $1.595 million to
$6.45 million. The model “was so
functional and cozy,” says Ms.
Prowse, who paid $2.3 million for
the unit. After signing the contract,
“I literally stole the exact ideas.”
™
$76,000,000
834 Fifth Avenue, 7/8A
Cooperative
7 Beds | 7 Bathrooms | 3 Powder Rooms
923 Fifth Avenue, 9C
$6,500,000
Condominium
WATCH WEEKDAYS
CHECK YOUR LOCAL LISTINGS
PageSixTV.com
2 Beds | 2.5 Bathrooms
A. Laurance Kaiser IV
Senior Sales Executive, Associate Real Estate Broker
Direct 646.677.1039 | Mobile 917.859.3602
$10,995,000
220 Riverside Boulevard, 20MN
Condominium
5 Beds | 4 Bathrooms
$3,750,000
470 Park Avenue, 2C
Cooperative
2 Beds | 2 Bathrooms
Craig M. Dix
Senior Sales Executive, Associate Real Estate Broker
Direct 646.677.1038 | Mobile 917.567.0805
212.710.1900 • contact@bhhsnyp.com • bhhsnyp.com • 590 Madison Avenue, New York, New York 10022
© 2017 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the
Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity.
Information not verified or guaranteed. If your home is currently listed with a
Broker, this is not intended as a solicitation.
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M8 | Friday, October 20, 2017
NY
THE WALL STREET JOURNAL.
MANSION
THE HIGH-RISE
OF THE CENTURY
FROM TOP: MICHAL CZERWONKA FOR THE WALL STREET JOURNAL (3); CARLOS SCHIEBECK/AFP/GETTY IMAGES
Ronald Reagan
FROM TOP: EVERETT COLLECTION (5); NOAM GALAI/GETTY IMAGES; MATTHEW STOCKMAN/GETTY IMAGES
Continued from page M1
tury Fox sold land used as back
lots for movie sets to the Aluminum Company of America, now
two companies, Alcoa and Arconic.
Alcoa wanted to demonstrate aluminum’s utility in high-rise construction, according to a book about
the area from 1959 to 2009, published by the Century City Chamber
of Commerce. The goal, the book
said, was a “glimmering Alcoa
showpiece,” with high-rise office
and residential buildings, wide boulevards, pedestrian bridges and
landscaped plazas, which is precisely how Century City looks today.
There are 21 office high-rises and
five residential high rises today, said
Nancy Wood, Chamber president.
Alcoa’s first residential high
rises, the two Century Towers,
were completed in 1964. Designed
by architect I.M. Pei, the towers attracted people with their proximity
to the Hillcrest Country Club and
amenities such as a pool, gym and
tennis court. Over the years, many
entertainers, including singer
Karen Carpenter, actor Michael
Douglas and David Janssen, star of
the 1960s television show “The Fugitive,” lived there. Mr. Janssen’s
widow, Dani, lives in the building
to this day, she confirmed.
Burt Lancaster, who died in
1994, purchased two units in 1974
and combined them, according to
records provided by Orange Coast
Title Company. He hired architect
Hal Levitt to design the property
in Moroccan style, said Diana
Cook, president of California
Dreaming Realty, who is listing it
as a $7,850-a-month rental.
The current owner, investor Michael Rosen, put the property on the
market last year for $2.995 million.
After it failed to sell following a
price reduction to $2.65 million, he
decided to rent it for a year or two,
Mr. Rosen said, adding that he never
altered Mr. Lancaster’s finishes.
In the 1980s, President Ronald
Reagan lent glamour and power to
Century City by frequently staying
CENTURY
CITY LOCALS,
THEN AND
NOW
LIVING IT UP Gary and Tari Weiss in their 3,250square-foot unit in the Century, above; their Century
apartment, right; the Century high-rise as seen from the
Century City Westfield Mall, above right.
WHITE HOUSE WEST Ronald Reagan in his Century City office in 1989.
at the Century Plaza Hotel, part of
which later became the St. Regis
Hotel, said Joanne Drake, chief administrative officer at the Reagan
Foundation. He hosted his two victory parties at the Century Plaza,
which the press dubbed the “Western White House,” said Ms. Drake.
In 2005, the St. Regis was purchased by the Related Companies,
a New York-based developer,
which tore it down and put up the
Century, completed in 2010.
Sales, which commenced at the
height of the real-estate crisis, were
initially slow. In addition, Mary Ann
Osborn, who was the director of
sales for the Century when it
opened, said buyers were so nervous about high-rise living she saw
some of them 12 or 14 times before
they made an offer.
Some early buyers in the building
In the heart of Greenwich Village,
full-floor corner residences designed by
Morris Adjmi Architects.
Only four residences remain.
With over 3,000 square feet, each home features three to four bedroom layouts, ceilings over 10-feet,
Smallbone of Devizes kitchens, oversized coffered windows with multiple exposures for each residence,
attended lobby, common roof terrace with kitchen, fitness center and private storage.
The Cathy Franklin Team
212.323.3236 | 116university.com
Pricing starting at $7,200,000
Estimated Occupancy Spring 2018
The complete offering plan is available from the Sponsor. File No. CD16-0087. Equal Housing Opportunity.
Karen Carpenter
Matthew Perry
Burt Lancaster
Michael Douglas
Candy Spelling
Nobu Matsuhisa
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | M9
NY
FROM TOP: DBOX/NEXT CENTURY PARTNERS (RENDERING); TEN THOUSAND
MANSION
FRESH START A rendering of the Century Plaza Hotel Residences and Tower Residences, a redevelopment of the Century Plaza Hotel by developer Woodridge Capital Partners. The $2.5 billion project includes a 394-room Fairmont Hotel, which will also house 63 condos. Behind the hotel there will also be two 43-story towers with a total of 268 condos.
have now seen their investments
nearly double, said Bachir Oueida of
Douglas Elliman, who said he has
sold 24 units and rented out 14 in
the building. Last year, Mr. Oueida
listed a 9,300-square-foot penthouse; it sold in June to the actor
Matthew Perry for $20 million, according to people familiar with the
transaction. Representatives for Mr.
Perry declined to comment.
Candy Spelling, widow of television producer Aaron Spelling, lives
in an 18,000-square-foot duplex
penthouse. She paid $34.8 million
in 2010, according to public records.
Commercial real-estate executive Gary Weiss, 60, and his wife,
Tari, 57, a software-company
founder, moved from a large home
in the San Fernando Valley to the
Century in 2014. They paid $4.33
million for a 3,250-square-foot
unit, which they renovated.
The Weisses walk their Maltese,
Chloe, to Beverly Hills, and stroll
Century City for shopping and dining. Mr. Weiss eats a couple of
times a week at the Century’s
ground-floor restaurant, Hinoki &
the Bird. At lunch, three-quarters
of the clientele are talent agents at
Creative Artists Agency, which is
around the corner, said the restaurant’s manager Chris Cutjapan.
Their typical order: kale salad with
salmon, he said.
From their apartment, the
Weisses look out onto the site of
the future Century Plaza Hotel Residences and Tower Residences, a redevelopment of the Century Plaza
Hotel by developer Woodridge Capital Partners. The $2.5 billion project will include a 394-room Fairmont Hotel, which will also house
ABOVE IT ALL Rents at Ten Thousand go up to $65,000 a month.
63 condos. Behind the hotel will be
two 43-story towers with a total of
268 condos, said Ms. Osborn, now
managing director of sales and
marketing for the residences. The
project should be complete by
mid-2021, and prices per square
foot should exceed those at the
Century, Ms. Osborn said. The Century runs at about $1,800 per
square foot, said Mr. Oueida, which
means a 1,000-square-foot unit at
the Century Plaza would theoretically cost over $1.8 million.
Century City still suffers from a
reputation for being a collection of
cold skyscrapers lacking neighborhood amenities like public parks,
street life and nightlife.
Westfield, one of the world’s
largest shopping mall owners, has
recently invested $1 billion in an
effort to change that reputation. It
is in the final stages of a redevelopment of its Century City Westfield Mall, originally built in the
1960s, said Bill Hecht, chief operating officer in the U.S. The mall
has “smart parking,” where cars
are tracked and billed via their li-
cense plates, and private lounges;
and will have a branch of Mario
Batali’s Italian food market, Eataly.
Betting on growing acceptance
of ultra-luxury vertical living, Miami-based developer Crescent
Heights built and opened a 40story rental building in January
called Ten Thousand. Rents range
from $9,000 to $65,000 per month
said Jennifer Monir, regional director of business development.
Ms. Monir said the building is “not
fully leased but close.”
The building offers amenities
including a robot “butler” named
Charley that brings items up to
the apartments, and residenttracking beacons. As a resident
moves toward the bar, for example, the bartender is alerted and
can start mixing up their favorite
dirty martini, Ms. Monir said.
Luxury Defined
Park Avenue Masterpiece, 730 Park Avenue, high floor duplex | Premier prewar white-glove co-op, luxurious triple mint corner
residence, 13 rooms, 5 BR/5.5 baths, high ceilings, 3 WBFP, corner LR, library, corner media room, formal DR & informal DR,
WEIK, corner master BR - 3 room suite w/ dressing & sitting, 5-zone CAC, gym. | $22M | WEB # 5219218
Penthouse Perfection, 829 Park Avenue | Premier prewar white-glove co-op, PH duplex renovated by SilverLining, solarium, 2 terraces,
10 rooms, 4 BR/4.5 baths, 12 ft ceilings, 2 FPs, corner LR, formal DR, media/game room, WEIK, over 15’ ceilings in master suite
with dressing/sitting, 10-zone CAC, gym. | $19.5M | WEB # 5194107 | Co-Exclusive
West Village Condo with Private Parking, 160 West 12th Street | Apartment 98 Brand new Greenwich Lane
condo w/ private parking space and storage bin, 3 BR/3.5 baths, 11 ft ceilings, open city views, gym, pool, garden,
movie theater, catering kitchen, dining room, lounge, children’s playroom, garage. $8.275M | WEB # 5181027
Grand 20-Ft Wide Architectural Masterpiece, 68 East 91st St
5 BR/5 bath state-of-the-art renovation, historic ivory facade,
single-pane windows, 20 ft ceilings in LR, 23 ft south facing
garden and 20’9” terrace off entertainment room, 2 working
fireplaces, multi-zone Central AC, 5,000 bottle wine cellar.
$14.5M | WEB# 5137355
Full Floor Flatiron Loft, 15 West 24th Street, 5th FL | Prewar co-op
off Madison Square Park, 3/4 BRs, 3.5 baths, 11 ft ceilings, grand south
facinglivingroom,dining,mediaroom,EIK,CAC,key-lockedelevator.
$4.495M | WEB #5230228
Panoramic Triple Mint Duplex, 230 West 56th Street, 50/51F, High floor corner condo, 4 BR, 3.5 bath, 2,954 sqft, Central
Park, river & open city views, corner DR, LR, WEIK, corner MBR w/ dressing,oversized windows, CAC, gym, lounge, garage.
$7.5M | WEB# 5243994
Sun-Flooded Sutton Duplex, 25 Sutton Place South, 18/19K,
High floor 4 BR, 3.5 bath in premier white-glove co-op on the river,
3,160 sq ft, 10 rooms w/ 2 LRs, formal DR, WEIK, study, garden
overlooking river, gym, garage, playroom. $3.995M | WEB# 5243996
T H E CAT H Y F R A N K L I N TE A M
AT T HE CORCOR A N GROU P
Representing the finest exclusives across Manhattan
Historic Treadwell Farms 1875 Townhouse, 215 East 61st St
Brand new state-of-the-art renovation, 5 stories plus a finished
basement, 5BR/6.5 bath, 5 WBFPs, huge EIK, elevator, 35 ft
garden, terrace off master BR, multi-zone Central AC,
finished rooftop terrace.
$14.79M | WEB# 5127227 | Co-Exclusive
Vicente Wolf designed Manhattan House Penthouse Collection, 200
East 66th St PH D2102, 4 BR/4 bath, 2 WBFPs, WEIK, top-of-the-line
finishes, 702 sf terrace, Exhale spa and gym, yoga studio, roof terrace,
lounge, children’s playroom, garage. $7.95M | WEB# 3821058
High Floor Corner XXX Mint Home, 215 West 88th
St, Apt 9F, Prewar white-glove condo, renovated southfacing 3 BR/3 bath, study, WEIK, Fireplace, high ceilings,
central AC, gym, rooftop terrace. $3.975M | WEB# 5167690
Licensed Real Estate Salesperson & Senior Global Real Estate Advisor
(m) 917.863.8209 | (o) 212.323.3236
cathyfranklin@corcoran.com
Real estate agents affiliated with The Corcoran Group are independent contractors and are not employees of The Corcoran Group. Equal Housing Opportunity. The Corcoran Group is a licensed real estate broker located at 660 Madison Ave, NY, NY 10065. All information furnished regarding property for sale or rent or
regarding financing is from sources deemed reliable, but Corcoran makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
M10 | Friday, October 20, 2017
ADVERTISEMENT
HERMOSA BEACH, CALIFORNIA
KIAWAH ISLAND, SOUTH CAROLINA
NAPLES, FLORIDA
Featured as the Beach House on the original 90210 show.
This property is easily the most unique and spectacular location on the Strand
with panoramic ocean views. It has massive 78’ of frontage to the west and a
singular 58’ of beach frontage looking north for an unmatched 136’ of beach
front. Sitting on a 3670 s.f. lot, this property features three updated beach
bungalows: Two 2-Bedroom, 2-Bath units and One 2-Bedroom, 1-Bath unit.
At nearly three-quarters of an acre, the beautifully placed homesite at
38 Shoolbred offers a private dock, deepwater access, and the perfect spot to
build your island haven. Flanked by Bass Pond and the Kiawah River, its quiet,
private neighborhood is surrounded by rolling sunlit waters and golden marsh
grasses, but Kiawah’s top-tier amenities are also close by. A Kiawah Island
Club Membership is available.
Minto Single-Family Estate Homes located in an area famous for
extraordinary golf communities. TwinEagles boasts not just one championship
course awarded “Best New Private Course in America” by Golf Magazine, but
two 18-hole, tour-quality courses and a spectacular 47,000 sq. ft. country
club lavished with every imaginable amenity. Best of all, golf membership
initiation fee is included with every Minto new home purchase.
$16,500,000
$2,000,000
From the mid $500s to over $1 million
www.3500thestrandhb.com
kiawahisland.com/real-estate
Stroyke Properties, Inc.
Bryn Stroyke
Kiawah Island Real Estate
Minto Communities
phone: 310.880.3436
phone: 866.312.1780
phone: 888.379.9868
Bryn@Stroykeproperties.com
info@kiawahisland.com
mintofla.com
JOHN’S ISLAND – VERO BEACH, FLORIDA
PARK CITY/HEBER VALLEY, UTAH
GREAT LIFESTYLE IN NAPLES, FLORIDA
Located where the “tropics begin” sits one of the most renowned
seaside communities on the east coast with 3 miles of pristine beaches, 3
championship golf courses, 17 Har-tru tennis courts, squash & Beach Club.
This luxurious 5BR retreat showcases 14,574± GSF, ocean views, summer
kitchen, 1st floor master, double-height living room, pool & elevator.
Conveniently located just up the ridge from the clubhouse complex,
280 Red Ledges Blvd is a 4 BR luxury home with great social spaces
amongst its 5,955 sf. As the most successful private community in the Park
City area, Red Ledges has great access to world class mountain, valley,
water and trail activities, all just 45 minutes from a major hub airport.
Live the lifestyle of your dreams in Naples, Florida! Gorgeous singlefamily residences up to 4,879 a/c sq. ft. Amazing six-acre recreation area
with 13,000 sq. ft. clubhouse, resort pool, fitness, tennis, indoor sports
court and much more - all included in low HOA fees. This is an incredible
opportunity in a great Naples, Florida location – call today!
$12,500,000
$1,895,000
From the $400’s to the $700’s
JohnsIslandRealEstate.com
www.RedLedges.com
John’s Island Real Estate Company
Red Ledges Realty
Chris Maddox
phone: 772.231.0900
phone: 877.733.5334
email: wj@johnsislandrealestate.com
www.glhomes.com
GL HOMES
info@RedLedges.com
phone: 800.281.9239
NEWPORT, RHODE ISLAND
DOWNTOWN ST. PETERSBURG FLORIDA
AUSTIN, TEXAS
Spectacular new construction in famed Ocean Lawn estate area.
Originally part of the Firestone Estate, this gated community offers privacy
and beautiful grounds in a central location near Cliff Walk and ocean beaches.
Chef’s kitchen, luxurious master, pool, hot tub, game room, and more. Open
plan with floor-to-ceiling windows and southern exposure give this residence
a sunny feel year round.
Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3
blocks from the water, artfully designed townhomes now under construction
on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2
car garage, private elevator, and amazing rooftop terrace. Low HOA fees.
Walking distance to world-class restaurants, museums, shopping, parks,
marina, and Tampa Bay.
Your Lakeside Farmhouse Awaits. This spacious one-story is situated
on a 1+ acre lot in a private, gated community on the Lake Travis shoreline.
Boasting 3 bedrooms plus casita, 4.5 bathrooms, exquisite pool/spa, outdoor
kitchen & high-tech conveniences, this home blends the comfort of the Texas
Hill Country with the sophistication of a custom home.
$5,975,000
From the $800’s to $900’s
$1,690,000
GustaveWhite.com
www.RegentLane.com
PeninsulaLakeTravis.com
Gustave White Sotheby’s International Realty
NJR Property Investments LLC
The Peninsula at Rough Hollow
Loren Dickey
phone: 401.849.3000
phone: 727.515.5556 email: natalie@njrdevelopment.com
phone: 512.456.3756 info@PeninsulaLakeTravis.com
ASHEVILLE/WAYNESVILLE, NORTH CAROLINA
CHARLOTTESVILLE, VIRGINIA
GUILFORD, CONNECTICUT
Gorgeous countryside, pristine property near Blue Ridge Parkway, waterfalls
and 500,000 acres of hiking trails. Ideal for development or as a luxury retreat.
Expansive mountaintop views and lush valley floor. 1/2 mile of pristine Pigeon
River for fishing and fun. 26 lots sold. Two vacation homes owned by others with
excellent rental history. 4 miles of gravel roads in place. Easy access to I-40 &
I-26 and the Asheville Airport. Prefers to sell as whole, but will subdivide.
Nestled on 25 wooded acres with stream frontage at the base of the Blue
Ridge, just minutes south of the University of Virginia, this 5400 sq ft 5 bed, 4
½ bath brick Georgian home boasts modern energy-efficient construction and
full access to community amenities, including optional estate maintenance
and preferred access to the on-site tasting room at Mount Ida Reserve.
Luxury Residences, CT “Project of the Year” by HBRA. 16+ acres, 1884
Mill has 2-BR loft units with garages. New construction of (3) 4-story
buildings with 2-BR ranch units, underground parking, views of L.I. Sound,
River, Marsh. Walk to the Historic Town Green, Shops, Restaurants, Train
Station, Yacht Club and Beach. Proposed Pool/Clubhouse/Fitness Ctr.
Price Reduced - $5.5 million
$795,000
Priced from $719,000
ColdMountainNC.com
www.TurkeyRunCville.com
Robert L. Graves
The Farms of Turkey Run at Mount Ida Reserve
Horton Group
Kenny Horton
phone: 843.422.2990 rlgraves@hargray.com
phone: 434.566.5562
phone: 1.203.499.8994
info@TurkeyRunCville.com
To Advertise Call: 800-366-3975
www.66highst.com
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THE WALL STREET JOURNAL.
NY
Friday, October 20, 2017 | M11
Guilford, CT | $7,900,000
WilTon, CT | $7,500,000
neW Canaan, CT | $7,495,000
neW Canaan, CT | $6,395,000
WashinGTon, CT | $5,250,000
WEB ID: UQND4 — MLS#E10233302
Edward Hillyer — 860.235.3424
WEB ID: RWAD4 — MLS#99185266
Deborah & Regi — 203.644.5025
WEB ID: QWXD4 — MLS#99192535
Hannelore Kaplan — 914.450.3880
WEB ID: CPND4 — MLS##170020115
Jack Horstmeyer — 203.536.5106
WEB ID: HGEC4 — MLS#L10229602
The Matthews Group — 860.868.0511
reddinG, CT | $4,850,000
WesTporT, CT | $3,999,000
WesTporT, CT | $3,975,000
Bedford, nY | $3,650,000
naples, fl | $3,450,000
WEB ID: UAMD4 — MLS#170013876
Al Filippone Associates — 203.258.1595
WEB ID: OULD4 — MLS#99190842
Al Filippone Associates — 203.258.1595
WEB ID: EYQD4 — MLS#170000399
Leslie Clarke Homes — 203.984.1856
WEB ID: VXWD4 — MLS#4742276
Eric Rosenfeld — 914.262.9628
WEB ID: XGVV4 — MLS#217022545
Arthur Shafran — 239.572.6060
roWaYTon, CT | $3,300,000
WesTporT, CT | $3,200,000
neW Canaan, CT | $2,975,000
WesTporT, CT | $2,950,000
WesTporT, CT | $2,895,000
WEB ID: JMQV4 — MLS#99182308
Marybeth Sullivan — 203.984.8025
WEB ID: EOLD4 — MLS#170005143
Michelle&Company — 203.454.4663
WEB ID: UIYD4 — MLS#170010497
The Sigg Team — 203.515.8954
WEB ID: REYD4 — MLS#99189833
Leslie Clarke Homes — 203.984.1856
WEB ID: OKAD4 — MLS#99189497
Donna Beretta — 203.451.1540
fairfield, CT | $2,850,000
danBurY, CT | $2,750,000
MounT KisCo, nY | $2,395,000
ChesTer, nY | $2,200,000
BlauvelT, nY | $2,200,000
WEB ID: KYJD4 — MLS#170019020
Denise Walsh & Partners — 203.650.1583
WEB ID: CCXT4 — MLS#99170542
Patty McCarthy — 203.733.7006
WEB ID: GAKD4 — MLS#4732580
Cindy Glynn — 914.523.6163
WEB ID: SWUD4 — MLS#4741438
Hope Mazzola — 914.714.0090
WEB ID: MPQD4 — MLS#4727190
Ellen Hilburg — 914.772.5858
neW Canaan, CT | $2,198,000
MounT KisCo, nY | $1,999,000
Branford, CT | $1,990,000
roWaYTon, CT | $1,950,000
WellfleeT, Ma | $1,849,000
WEB ID: NEDD4 — MLS#170008487
April & Kelly — 203.667.4074
WEB ID: LBUB4 — MLS#4722142
Cindy Glynn — 914.523.6163
WEB ID: AZCB4 — MLS#N10217780
L. Vogel & V. Welch — 860.614.0666
WEB ID: WHLD4 — MLS#170003954
Tammy Langalis — 203.644.2393
WEB ID: KXBD4 — MLS#21714374
J. Fleming/J. Ciborowski — 508.246.3721
raveis.luxuryportfolio.com
neWToWn, CT | $1,695,000
WilTon, CT | $1,691,000
pierMonT, nY | $1,650,000
sCarsdale, nY | $1,650,000
souThBurY, CT | $1,626,000
WEB ID: AUSD4 — MLS#170005917
Beth Caldwell — 203.994.4849
WEB ID: OKLC4 — MLS#99181058
Nancy Budd — 203.984.8922
WEB ID: IRVD4 — MLS#4738285
Debbie Blankfort — 914.522.5426
WEB ID: MVRV4 — MLS#4733558
Nikki Rosee — 914.523.1356
WEB ID: WOSD4 — MLS#99190311
Beatriz Conroy — 203.910.2172
WhiTe plains, nY | $1,595,000
sTaMford, CT | $1,550,000
souTheasT, nY | $1,500,000
TarrYToWn, nY | $1,499,999
fairfield, CT | $1,449,000
WEB ID: TTDB4 — MLS#4720064
Angela Manson — 914.420.9878
WEB ID: UKCC4 — MLS#99969
Anthony Ardino — 203.249.9833
WEB ID: QUHD4 — MLS#4741543
Cindy Glynn — 914.523.6163
WEB ID: QZYD4 — MLS#4735989
Maria Birgy — 914.843.1660
WEB ID: ZZEB4 — MLS#99184427
Denise Walsh & Partners — 203.650.1583
sTaMford, CT | $1,299,000
Warren, CT | $1,295,000
WaTerford, CT | $1,249,900
GroTon, CT | $1,150,000
souThBurY, CT | $1,095,000
WEB ID: YOFD4 — MLS#170009724
Geri Guzinski — 203.536.2232
WEB ID: XARD4 — MLS#99191886
Stacey Matthews — 860.868.0511
WEB ID: CQUD4 — MLS#E10239599
Cindy Terry — 860.625.6336
WEB ID: MNTD4 — MLS#E10233805
Nancy Budd — 203.984.8922
WEB ID: TLSC4 — MLS#W10223990
Pat Blanko — 203.206.9194
©2017 Luxury Portfolio International.® Offering is subject to errors, omissions, change of price, or withdrawal without notice. All information considered reliable; however, it has been supplied by third parties and should not be relied on as accurate or complete. Equal Housing Opportunity.
M12 | Friday, October 20, 2017
THE WALL STREET JOURNAL.
NY / NE
MANSION
RELATIVE VALUES
PRETEND IT’S YOUR BACKYARD
SKYDEF PRODUCTIONS
CHRIS MILLER (LEFT); GAYLE HARVEY REAL ESTATE
Homes on the market in California, Virginia and Wyoming that are adjacent to preserved public properties
$4.5 million
Joshua Tree, Calif.
Two bedrooms, one bathroom
This eclectic home sits on 225 acres abutting federally preserved
land, and is about 2 miles from Joshua Tree National Park.
Mojave Rock Ranch, built in 1958, has an indoor/outdoor feel. It
features modern amenities such as a heated pool and spa, and a
helipad. It also has a gold mine and an original jail cell from the
days of the Old West.
Agent: Marc Lange, HOM Sotheby’s International Realty
$4.5 million
$5 million
Madison, Va.
Three bedrooms, two bathrooms
Kelly, Wyo.
Three bedrooms, one bathroom
Graves Mill Farm, on 664 acres, is adjacent to the Rapidan Wildlife Management Area and a short hike to Shenandoah National
Park. It has been a working farm with livestock and has about
300 acres of grazing land. It also has miles of trails for hiking and
horseback riding. The property, which includes a lake, has an updated Cape Cod-style home, as well as a farmhouse and cottage.
Agent: Gayle Harvey Real Estate
Surrounded by Grand Teton National Park, this 1-acre property
was the only land kept by the Moulton family when they sold
their land to the government for preservation. The 1936 home
was originally a one-room cabin but has been renovated. Five
small cabins, built starting in the 1930s, are rented out in the
summer. The barn is used as a dance hall.
Agent: Chad Budge, Budge Realty Group
— Stacey Altherr
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© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
THE WALL STREET JOURNAL.
Friday, October 20, 2017 | M13
NY/NE
ADVERTISEMENT
Distinctive Properties & Estates
To advertise: 800-366-3975 or WSJ.com/classifieds
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SKI HOMES.
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© 2017 Dow Jones & Company, Inc. All Rights Reserved.
ILLINOIS
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M14 | Friday, October 20, 2017
THE WALL STREET JOURNAL.
MANSION
A Life That
Incited Poetry
The former U.S. Poet Laureate grew up in Queens;
why he still has a money clip and his father’s union pin
I wrote my first poem in the early 1950s when I was 10. I
was in the back seat of my parents’ car as my father drove
up New York’s FDR Drive. I saw a large sailboat on the East
River and asked my mother for a pen. I wanted to write
down how I felt.
I don’t remember exactly what I
wrote, but it probably was about
the incongruity of a bright white
boat sailing around in the gray city.
My parents were both 40 when
they had me in 1941. I was a miracle baby, since they didn’t expect
to have a child. But I
never viewed my parents as old. They always looked and
acted much younger
than their age.
I grew up in the
Jackson Heights section of Queens, N.Y.,
until I was 13. We
lived in several
buildings, but the
one I remember best
was on 78th Street
and 34th Avenue. The building
took up an entire block and had
beautiful garden apartments.
We lived on the top floor of the
five-story building, in a two-bedroom apartment. I was an only
child and liked to spend time in
our sun room. The room was
bright all day. I’d look out the window watching for experiences that
would trigger a poem.
In my room, I kept lots of lead
soldiers made in England that my
father had given me. I also had
plastic model cars and trucks. I
liked to burn them and watch the
black smoke rise with particles
hanging in the air and see the
plastic melt and reform.
My father, Bill, was a Runyonesque character. Before I was
born, he traveled the country
working as an electrician and then
landed a job at the New York Daily
News. He met my
mother in the hospital after he was injured at work. She
was his nurse.
After I was born,
my mother’s brother
in Montreal got my
father a job in New
York at his insurance
company. At first, my
father worked there
alone. He was a very
good-looking guy and
something of a dandy. He was athletic and always looked sharp.
He used to call me Champ,
which was probably good for my
self-esteem. He’d say, “Champ, always carry your cash in a money
clip so you can get it out fast and
pay for drinks.”
His philosophy was to be a
sport and pay for your friends as
much as possible. To this day, I
still carry my cash in a Tiffany
money clip.
My mother, Katherine, was
called Kay. She was born and
raised on a farm in Ontario and
attended nursing school in To-
ronto. Then in the
late 1920s, she traveled around the
States. She was
great looking.
My father worked
hard and eventually
transitioned from
life insurance to aviation insurance. By
then, his office on
John Street in Manhattan had become a
real office.
CHAPTER AND VERSE Billy Collins, above, at his home in Winter Park, Fla., and, left, at
The company’s
about age 3, at the Douglaston Golf Course in Queens, N.Y.
British chairman and
“The Apple That Astonished
his wife enjoyed poetry and conthat belonged to my father arrived
Paris,” was published in 1988,
tributed to the Modern Poetry Asin a package some years after he
when I was in my 40s. From then
sociation in Chicago. As a result,
died in 1995. It was a pin from the
on, poetry became my focus.
Poetry magazine arrived in my faInternational Brotherhood of ElecToday, I shuttle between homes
ther’s office, and he’d bring home
trical Workers recognizing 75
in New York and Winter Park, Fla.,
the latest issue each month.
years of membership and service.
where I direct a speakers series at
In school, I had been exposed to
Despite his insurance-company
Rollins College. In Florida, my fitraditional poets—they all had
success, my father had been payancée and I live in a one-story, Key
three names. The new poets in Poing his union dues.
etry were people like Howard Nem- West-style home with white hurriI keep the pin in a cuff-link box.
cane shutters and a little pool in
erov, Karl Shapiro, Maxine Kumin
Seeing the pin brings back memoback. There’s no lawn, just tropical
and Denise Levertov. They wrote in
ries of him. Paying those dues was
foliage.
a fresh, conversational style.
something he kept to himself. Now
Inside, we have three bedrooms
In 1954, when I was 13, we
it’s our secret.
and a big long room with a piano
moved to White Plains, N.Y. I lost
—As told to Marc Myers
and books. The sun never really
all my friends, but I gained a Cape
Billy Collins, 76, was the U.S. Poet
screams through the windows. At
Cod house with a basketball court
Laureate from 2001 to 2003 and is
4 p.m. it comes in obliquely
on the driveway and cars.
the author of 11 collections of pothrough the shutters, making my
In college and grad school, I
etry, including his latest, “The Rain
office look like Marlon Brando’s in
wanted to be an English professor.
in Portugal” (Random House), now
“The Godfather.”
Poetry was something I wrote on
in paperback.
The most prized item I have
the side. My first book of poetry,
LIVE VICARIOUSLY THROUGH YOURSELF.
When was the last time you said “wow” and really meant it?
Browse our luxury home collection at berkshirehathawayhs.com
©2017 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC.
Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices
symbol are registered service marks of HomeServices of America, Inc.® Information not verified or guaranteed. If your property is currently
listed with a broker, this is not intended as a solicitation. Equal Housing Opportunity.
FROM TOP: EDWARD LINSMIER FOR THE WALL STREET JOURNAL; BILLY COLLINS/EDWARD LINSMIER FOR THE WALL STREET JOURNAL
HOUSE CALL | BILLY COLLINS
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