. ADVERTISEMENT Securing Al’s Brand New Happy Heart. Last week: DJIA 24462.94 À 102.80 0.4% NASDAQ 7146.13 À 0.6% STOXX 600 381.84 À 0.7% 10-YR. TREASURY g 1 1/32 , yield 2.949% OIL $68.38 À $0.99 Authorities Search for Restaurant Gunman After Four Are Killed What’s News Business & Finance T Amazon’s disclosure of its median pay has highlighted its dissimilarity to technology firms with which it is often compared. B1 Wells Fargo will seek an extended deadline to comply with a consent order on anti-money-laundering controls. B1 Electric-vehicle startups are luring seasoned auto executives to help them make sense of the capital-intensive business. B2 Korean Air Lines’ chief said his two daughters resigned as carrier executives. They were accused of abusing subordinates. B3 HNA reduced its stake in Deutsche Bank to 7.9% from 8.8% as the Chinese conglomerate continued to unload its holdings in overseas companies. B6 World-Wide Trump will urge North Korea to quickly dismantle its nuclear arsenal when he meets Kim, amid hopes for the release of Americans held by Pyongyang. A1, A10 The suspect in the killings at a Waffle House in Tennessee was arrested last year after crossing a White House security barrier. A3 Treasury Secretary Steven Mnuchin said he was considering visiting Beijing for trade talks as Xi outlined a revised vision for China as an internet and tech power. A6 Merkel and Macron will travel to Washington this week with strains apparent in U.S.-European economic relations. A2 Israel declined to comment on what Hamas said was its role in the killing in Malaysia of Palestinian engineer Fadi al-Batsh. A7 A suspected Islamic State suicide bomber killed at least 52 people outside a voter-registration center in the Afghan capital. A7 An international inspection team entered Douma, Syria, to investigate a suspected chemicalweapons attack there. A10 GEORGE WALKER IV/THE TENNESSEAN/ASSOCIATED PRESS GE retirees who invested heavily in their employer’s stock have been hit hard by the slide in the value of the shares. A1 TRAGIC DAY: A gunman fled after killing three customers and an employee early Sunday at a Waffle House restaurant near Nashville, Tenn. The suspect, Travis Reinking, had been arrested last summer after crossing a security barrier at the White House. A3 Tencent Music Readies Big IPO BY MAUREEN FARRELL AND JULIE STEINBERG Tencent Music Entertainment Group, China’s largest music-streaming company, is preparing what would be one of the biggest technology IPOs ever following the successful debut of its European counterpart, Spotify Technology SA. The digital-music business of Chinese internet giant Tencent Holdings Ltd. plans to in- DEADLY BLAST: A suspected Islamic State suicide bomber struck an Afghan voter-registration center Sunday, killing at least 52 people. A7 Awful Traffic? Wheel Out The RoboCop i i Tin men try to keep control, but chaos often wins KINSHASA, Congo—Traffic in this African city is a daily death-defying battle between humans and robots. Sometimes the robots lose. Kinshasa and other cities in Congo rolled out traffic robots in recent years to try to manage some of the world’s most chaotic intersections. Equipped with red-and-green lights and movable arms to direct vehicles, this small brigade of tin men watches over thoroughfares with six or more lanes, where cars, trucks and motorcycles skirmish for right of way. But the 7-foot-tall humanPlease see ROBOTS page A12 s Copyright 2018 Dow Jones & Company. All Rights Reserved YEN 107.65 Trump to Demand Kim Act Fast on Arsenal 2017 when Spotify, the musicstreaming giant based in Sweden, took a 9% stake in the company in a share swap. Should investors give it that valuation in its IPO pricing, it would be the fourthbiggest U.S.-listed tech IPO on record after Alibaba Group Holding Ltd., Facebook Inc. and JD.com Inc., measured by valuation at the time of the offering, according to Dealogic. Please see IPO page A2 Investors Find It Harder To Both Buy and Sell Investors are having a tougher time trading in a number of financial markets, weakening their ability to raise cash or protect against big stock declines. The capacity to get in or out of an investment, known as liquidity, was rarely tested during the long stretch when stocks and bonds rallied with little volatility. Now as inflation concerns, global trade anxiety and tensions in Syria roil markets, investors notice it is getting harder to trade as easily. Chris Retzler, who manages the Needham Small Cap Growth Fund, tried to buy a small-cap tech stock in February, only to find that trading was thin and prices unattractive. Rather than paying up, he decided to wait for a couple of weeks until he found someone offering the stock at a reasonable price. “There is very little you can do at that point other than be patient and not overpay,” Mr. Retzler said. The liquidity problem has Please see STOCKS page A4 President Donald Trump will urge North Korea to act quickly to dismantle its nuclear arsenal when he meets North Korean leader Kim Jong Un and isn’t willing to grant Pyongyang substantial sanctions relief in return for a freeze of its nuclear and missile tests, administration officials said. By Michael R. Gordon, Jonathan Cheng and Michael C. Bender Those two closely related questions—the pace of Pyongyang’s nuclear dismantlement and the timetable for sanctions relief—stand to be the major issues of the summit. “When the president says that he will not make the mistakes of the past, that means the U.S. will not be making substantial concessions, such Please see SUMMIT page A10 Pompeo to face rebuke by Senate panel.............................. A4 Hopes rise for freeing of Korean detainees.................. A10 In Pay, Amazon Isn’t Tech Giant Lower-salary retail and logistics dominate Amazon’s jobs. B1 Median employee compensation, 2017 Tech Logistics & retail Facebook Twitter Salesforce.com eBay Prologis IBM UPS C.H. Robinson Expeditors* Amazon Home Depot $240,430 161,860 155,284 122,891 94,915 54,491 53,443 52,606 40,918 28,446 21,095 *Expeditors International of Washington Sources: MyLogIQ; company ﬁlings Earnings are strong, but rewards scarce........................ B10 Retired From GE, Now Pinching Pennies i In Defense of the Not-so-Busy Retirement Encore, R1-10 > eral months, they added. Tencent Music’s move toward going public is the latest sign that the IPO market is gaining steam. Tencent Music’s offering could value the business at over $25 billion, some of the people said. This was the company’s value in recent private transactions, The Wall Street Journal reported last month. That was up sharply from its $12.5 billion valuation in late BY GUNJAN BANERJI AND SAM GOLDFARB Journal Report Life & Arts..... A13-15 Opinion.............. A17-19 Sports........................ A16 Technology............... B4 U.S. News............. A2-4 Weather ................. A16 World News...... A6-10 terview potential underwriting banks over roughly the next month, according to people familiar with the matter. The initial public offering, potentially coming in the second half of 2018, would be one of the largest deals of the year and is expected to raise billions in proceeds, some of the people said. Tencent Music is expected to list in the U.S. but is unlikely to make a final venue decision for sev- Kabul Voter Registration Targeted BY GABRIELE STEINHAUSER CONTENTS Business News....... B3 Crossword.............. A16 Heard on Street... B10 Journal Report... R1-10 Markets............... B9-10 Markets Digest..... B7 EURO $1.2289 North Korea will have to dismantle nuclear weapons to ‘earn’ lifting of sanctions HEDAYATULLAH AMID/EPA/SHUTTERSTOCK encent Music Entertainment, China’s largest music-streaming company, is preparing an IPO after the successful debut of its European counterpart, Spotify Technology. A1 HHHH $4.00 WSJ.com MONDAY, APRIL 23, 2018 ~ VOL. CCLXXI NO. 94 * * * * * * Among victims of company’s fall are former employees who loaded up on its stock BY THOMAS GRYTA Gary Zabroski started working for General Electric Co. in 1976, at an aviation factory in his hometown of Lynn, Mass. The job paid well, came with benefits and, for Mr. Zabroski, provided a career ladder for a man with a high-school education who started out cleaning toilets. “You had a job for life if you had gotten in there,” said Mr. Zabroski, 61 years old. He rose to punch-press operator and retired in 2016 after working 40 years at the century-old plant, which roared to life during World War II and still churns out engines for jets and helicopters. He left GE with an annual pension of $85,000 and company stock valued at more than $280,000. Retirement looked pretty good until GE’s stock collapsed. His shares are now worth about $110,000, prompting a late-life job hunt. “I never planned on retiring and having to go back to work,” said Mr. Zabroski, who has monthly mortgage payments and supports a partially disabled wife. “It’s kind of scary.” The rapid unraveling of GE has wiped out roughly $140 billion in stock-market wealth in the past year, not just at big Wall Street firms but among small investors. The industrial giant is one of the most widely held U.S. stocks. The stock value lost by GE in the past 12 months is Please see GE page A12 Securing Al’s Brand New Happy Heart. Unisys enables medical devices around the world to operate seamlessly and safely using the latest mobile, cloud, and device management technologies. So patients like Al can worry about more important things, like getting to see the grandkids. Find out more at Unisys.com/Health. Consulting | Services | Technology . A2 | Monday, April 23, 2018 * * THE WALL STREET JOURNAL. U.S. NEWS THE OUTLOOK | By Sarah Chaney Jobless Funds Notch Uneven Rebound In 2009, mired in the depths of recession, Ohio’s unemployment trust fund went broke, prompting the state to borrow $2.6 billion from the federal government so it could keep sending checks to unemployed workers. Now, with the state unemployment rate down to 4.4%, the debt has been repaid and the trust fund has started to rebuild, but not enough to leave Ohio with sufficient funds to manage another economic downturn. That challenge exists across the country: Low unemployment has led to a recovery in state unemployment funds, but the recovery is mixed and incomplete. State unemployment trust fund reserves hit $55.2 billion last year, up substantially from $9.5 billion in 2010. Despite the rebound, more than half of U.S. states lack enough unemployment funding to be prepared for another recession, Labor Department data show. Replenishing Reserves Unemployment insurance reserves are up nearly $46 billion in the U.S. since they bottomed out in 2010. Total U.S. unemployment insurance trust fund reserves* Number of years of unemployment beneﬁts in reserve for a recession† Highest ranked states Lowest ranked states $60 billion Wyo. Ore. Vt. Miss. Utah S.D. Neb. Okla. Alaska Idaho 50 2017 $55.2 billion Recessions 40 30 20 10 0 2000 ’05 Source: Labor Department ’10 ’15 *as of Dec. 31 of that year ing $1 trillion. “Given how robust the recovery has been, this is a high number of states to not be meeting the recommended federal solvency measure,” said George Wentworth, senior counsel at National Employment Law Project, a group that advocates for the unemployed. For a trust fund to be recession-ready, it must have enough in reserve to pay out benefits at a recession level for a year. As of the beginning of 2018, 24 states and jurisdictions including Washington, D.C., and Puerto Rico exceeded this standard, while 29 states and territories including the Virgin Islands fell below it, according to a Labor Department report. By comparison, in 2000, when the national unemploy- E conomists and policy experts say many states—including powerhouses like New York, California and Texas—are missing an opportunity to rebuild their funding during good economic times. Complicating their outlook, the federal government may not be in a strong position to help the next time the U.S. economy goes south, because federal budget deficits are approach- 2.17 2.17 years years 2.17 2.17 2.02 2.02 1.86 1.86 1.76 1.76 1.72 1.72 1.70 1.70 1.69 1.69 1.66 1.66 1.44 1.44 †as of Jan. 1 ment rate matched today’s 4.1%, 30 states met the solvency standard. In the majority of states, trust fund money derives from taxes on employers, with a few states requiring employee contributions. If states run out of funds, the federal government typically provides a backstop. State trust funds owed $47 billion to the federal government in 2011, according to a Century Foundation paper by Andrew Stettner. By the end of 2017 their debt had been reduced to about $1 billion. To pay back the federal government and recover funding, states have pursued different strategies. Nine states reduced the duration of benefits to fewer than the traditional 26 weeks. North Carolina is among Ill. 0.37 years Conn. 0.33 N.Y. 0.28 Mass. 0.26 W.Va. 0.25 Ind. 0.23 Ohio 0.22 Texas 0.19 Virgin Islands 0 Calif. 0 THE WALL STREET JOURNAL. those nine. The cuts might have helped to encourage individuals to find work. In the second quarter of 2017, the percentage of workers claiming unemployment benefits was lower in North Carolina than in any other state. The average weekly benefit was $252, 46th in the nation. The state’s fund is now big enough to make payouts through a recession, but some policy experts say cutting benefits will come with costs. During a recession, the duration of benefits and average payment could prove insufficient to cover a wide swath of unemployed workers. States figuring out how to address low funding levels are faced with limited options that often boil down to how much to cut worker benefits or raise employer taxes. That debate is still playing out in Ohio. For Steve Bruns, president of Ohio-based Bruns General Contracting, part of the legislative solution lies in limiting the length of worker benefits. He hopes the state can bring the fund back to solvency, as taxation scars from the last recession still linger. Mr. Bruns’s construction company was paying nearly three times as much in taxes per employee to the state in the wake of the recession, as Ohio paid off federal debt. The firm cut costs on energy, employee perks and building operations as a result of recessionary pressures exacerbated by the extra taxation, he said. “We were scrambling trying to figure out how to make ends meet,” Mr. Bruns said. W ith others arguing the employer tax is minimal and necessary to save worker benefits, Ohio’s newest legislation proposal—House Bill 382—continues to stall. “Everyone recognized the system was not adequately funded but kept kicking the can down the road because no one wanted to do the heavy lifting to actually fix the problem,” said Don Boyd, director of labor and legal affairs at the Ohio Chamber of Commerce. A spokesman for the Ohio Department of Job and Family Services declined to comment. CAROLYN KASTER/ASSOCIATED PRESS IPO TAKING ROOT: Hundreds of plants took the shape of a tree in an installation Sunday on the National Mall in Washington to promote the day. Merkel, Macron to Visit at Tense Time themselves facing blowback from U.S. confrontations with China, Russia and Iran, including the threat of steel and aluminum tariffs, the prospect of the U.S. pulling out of the nuclear deal with Iran that the U.K., France and Germany helped negotiate; and proposed sanctions on Russia. “We are allies,” French Finance Minister Bruno Le Maire said Friday in a news conference. “We can’t live with a Sword of Damocles hanging over our heads.” He indicated that until the U.S. removes the threat of tariffs on European steel and alu- By Josh Zumbrun, Tom Fairless and Ian Talley The strains—over trade, sanctions and other matters— were evident during semiannual meetings of the International Monetary Fund and World Bank this in Washington this weekend. European capitals find minum, the bloc wouldn’t join in Washington’s campaign to pressure Beijing. “If we want to discuss China we must first get rid of that threat,” he said. “This can’t just be bilateral work.” At a press conference Saturday, Treasury Secretary Steven Mnuchin was asked if the U.S. had been successful recruiting or persuading allies to its efforts against China. “We’re not looking to recruit other people,” he said. “What we are looking to do is have discussions with our other partners, they share similar issues, a lot of these issues are not unique” to the U.S. Mario Centeno, the Portuguese finance minister, said, in reference to trade, that “Europe is of course not happy with this dimension of the global debate, we made it very clear to the U.S.” Many European policy makers have sympathy for U.S. frustration with China’s trade practices. European Union financial-services chief Valdis Dombrovskis, said the EU was eager to work with the U.S. “in a multilateral way” on China’s trade practices. —Stephen Fidler contributed to this article. U.S. WATCH ENVIRONMENT MOLLY RILEY/ASSOCIATED PRESS Flint Activist Among Seven Prize Winners LeeAnne Walters helped put the spotlight on a water crisis. A mother of four who helped draw national attention to the drinking water crisis in Flint, Mich., is among this year’s recipients of the Goldman Environmental Prize, the green world’s equivalent of an Oscar. The mother, LeeAnne Walters, is one of seven activists from six countries being honored at a ceremony in San Francisco on Monday by the Goldman Environmental Foundation, which was started to honor grass-roots environmental activists world-wide. In addition to awards of $175,000 each, the Goldman winners get global attention focused on causes which this year range from a fight over gold mining in Colombia to proposed expansion by the nuclear industry in South Africa. Companies and governments targeted by Goldman winners have said they use sound environmental practices. —Jim Carlton CALIFORNIA Three People Found Dead Inside Home Homicide detectives are investigating the deaths of three people, including two young THURSDAY: The Commerce Department releases March data on orders for long-lasting U.S. factory goods. In February, orders rose at the best pace in eight months, in part because of an uptick in business investment, which hit the highest level since 2014. Signs of a slowdown in the eurozone economy likely will play a central part in the European Central Bank’s discussions ahead of its policy announcement Thursday. Officials pay close attention to IHS Markit’s composite Purchasing Managers Index as a timely measure of activity, and economists expect that to point to a further easing of momentum in April when the report is released Monday. The measure is seen falling to 54.8 from 55.2 in March. FRIDAY: The Bureau of Economic Analysis releases firstquarter economic growth data for the U.S. Last year’s fourthquarter gross domestic product rose at a 2.9% annual rate, exceeding economists’ expectations at the time of the third revision. Growth in this year’s first quarter is expected to come in weaker after months of soft consumer spending. The Bank of Japan releases a policy statement and quarterly outlook report, as economists and investors have been focusing on when the central bank might scale back its aggressive easing policy. In early March, the central bank left its policy unchanged, but earlier in the year, Gov. Haruhiko Kuroda said for the first time the central bank would consider tightening in the year starting in April 2019. FROM PAGE ONE Earth Day Gains Ground in Front of the Capitol German Chancellor Angela Merkel and French President Emmanuel Macron visit Washington this week with strains hanging over European economic relations with the U.S. ECONOMIC CALENDAR children, whose bodies were found early Sunday inside a home in Modesto, authorities said. It is unclear how the three died and there are no suspects, according to Heather Graves, spokeswoman for the Modesto Police Department. Investigators are treating the case as an “isolated incident,” she said. The bodies, including those of two boys, ages 4 and 6, were discovered in a neighborhood on the south side of the city of about 200,000 residents. Ms. Graves didn’t immediately have any information on the third deceased person. —Associated Press Continued from Page One That doesn’t include Spotify, which didn’t raise capital in its public offering but was valued at about $29.5 billion at its first trade. Still, there is no guarantee the company will proceed with a share sale in New York or elsewhere, and preIPO valuations can fluctuate until a company prices its shares. Investors are excited about Tencent Music because of its connection to Tencent Holdings, which has a stake of more than 50% in Tencent Music, as well as its position in the marketplace: Tencent Music, which operates the popular music app known as QQ Music and others, recently had 700 million monthly active users across personal computer and mobile platforms largely in China, according to the company. Investors have also been hungry for big technology IPOs since they typically offer potential for significant growth. Tencent Music was created in mid-2016 after Tencent Holdings bought a controlling stake in China Music Corp. and combined it with Tencent’s existing streaming business. Last month, Tencent Holdings President Martin Lau said Tencent Music could be a candidate for a future spinoff. The possible Tencent Music offering could come as the IPO market has come surging back, particularly among technology companies listing on U.S. exchanges. After the worst year for IPOs in more than a decade, IPO activity jumped in 2017 and has continued to increase in volume and number of companies seeking public offerings on U.S. exchanges this year. Based on their pipeline, underwriters have said they expect activity in the second half of 2018 to be busier than this CORRECTIONS AMPLIFICATIONS Actively managed mutual funds voted in favor of management-compensation proposals at major companies 88.9% of the time. The “Intelligent Investor” column on Saturday incorrectly said they vote in favor 89.9% of the time. Readers can alert The Wall Street Journal to any errors in news articles by emailing email@example.com or by calling 888-410-2667. year’s already elevated levels. Still, shares of other Tencent-backed companies that have listed in New York have traded down since their IPOs on weaker-than-expected performance. Shares of Chinese search engine Sogou Inc. are down 35% since November, while shares of Singaporebased gaming and e-commerce company Sea Ltd. are down more than 20% since October. Tencent Holdings itself, which is listed in Hong Kong, is up sharply from a year earlier even after its share price dropped over the last few weeks. Spotify went public on the New York Stock Exchange in early April in an unusual offering in which it didn’t raise money. Late last year, when Tencent Music and Spotify swapped stakes in each other’s companies, the deal valued Tencent Music at $12.5 billion based on Spotify’s 9% stake. Tencent Music’s nearly 10% of Spotify valued it at nearly $20 billion. Unlike Spotify, Tencent is expected to go with a traditional IPO. As a public stock, Spotify’s shares have so far traded largely above its private-market prices, which had already more than doubled from its pre-IPO share price a year ago. That could bode well for investors in Tencent Music when the stock hits the public markets. —Wayne Ma contributed to this article. THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: firstname.lastname@example.org NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: email@example.com By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: firstname.lastname@example.org By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A3 * * * * * U.S. NEWS Patron grabs gun when shooter reloads; suspect arrested in ’17 at the White House BY SHIBANI MAHTANI A gunman who killed four people Sunday at a Waffle House near Nashville was arrested last summer after he crossed a security barrier at the White House, police said. The suspect, Travis Reinking, 29 years old, of Morton, Ill., opened fire around 3:25 a.m. local time at the restaurant in Antioch, Tenn., a community in the Nashville metro area, killing three customers and one employee and wounding four others, authorities said. He was armed with an AR-15 assault style rifle. As of Sunday afternoon, police still had not found Mr. Reinking, who they believe had moved to the Nashville area last fall. SWAT teams with police dogs had searched his apartment close to the Waffle House in Antioch and the dogs briefly picked up his scent, said Don Aaron, a spokesman with the Nashville Metropolitan Police Department. Mr. Reinking, whom police describe as a white male with short hair, wore only a green jacket during the shooting and later shed the jacket, which carried additional AR-15 magazines, police said. He returned to his nearby apartment and put on a black pair of pants, but was believed to be barefoot and shirtless. Police have drafted murder charges against him. Another Waffle House customer, 29-year-old James Shaw Jr., wrestled over the firearm with Mr. Reinking. When the gunman was reloading, Mr. Shaw grabbed the gun from him and threw it over the counter. “He clearly came armed,” and was “intending to create devastation across the South Nashville area,” said Mr. Aaron, the police spokesman. Police said that a man believed to be Mr. Reinking was last seen in a wooded area near an apartment complex not far from the Waffle House. Federal and local law-enforcement agents said that Mr. Reinking was arrested near the White House grounds on July 7, 2017, after entering a restricted area in hopes of getting an appointment with the president. After he refused to leave, he was arrested, a Secret Service official said. Travis Reinking, 29 years old, is the suspect in a shooting at a Waffle House near Nashville. He was deemed by law enforcement in Illinois last year as unfit to carry firearms, which were then surrendered to his father. At some point, police said, his father returned his firearms to him. Mr. Reinking’s parents couldn’t be reached for comment. Of the four fatalities, three died at the scene and one at the Vanderbilt University Medical Center. All the fatalities were in their 20s, including three patrons and one employee of the Waffle House. Two wounded victims were still undergoing treatment at the hospital, police said. Witnesses and police said Mr. Reinking arrived at the Waffle House restaurant in a pickup truck, and started firing at three people who were standing outside. He then went inside the restaurant and more shots were fired. Nashville Mayor David Briley said it was a “tragic day” for the city. “If we can all just come together, for this and the greater good, we can take these weapons of war off the streets of our country,” he said. Walt Ehmer, CEO of Waffle House, which operates more than 2,000 locations in 25 states, said it was a “very sad day for the Waffle House family.” “All of our attention right now is focused on the victims and their families,” he said. “We are here to support them in any way we possibly can.” Customer Acted To Disarm Shooter James Shaw was hiding behind a swinging door in a Nashville, Tenn., area Waffle House early Sunday morning when he had to make a choice. A gunman, who would eventually kill four people, fired though the door, grazing Mr. Shaw’s arm. Since the door didn’t lock, the 29-year-old Nashville native and AT&T employee had to either act or be killed. “If it was going to come down to it, he was going to have to work to kill me,” he said in an emotional press conference Sunday afternoon. During a pause in the shooting, he hit the shooter with the door and wrestled the gun away from him. He is being hailed as a hero, but Mr. Nash said he was only thinking about surviving. “I’m not a hero. I’m just a regular person,” he said. “Any- James Shaw, right, and Waffle House CEO Walt Ehmer body could do what I did if they were pushed. You have to react or you’re going to fold. I chose to react because I didn’t see any other way to be living.” Mr. Nash suffered minor injuries during the shooting and scuffle. He attended church Sunday morning after being released from the hospital, though he said he isn’t especially religious. “I went to church to get past it,” he said. —Joe Barrett Supreme Court to Hear Travel Ban Case Defense Looks for Witness in Cosby Case BY JESS BRAVIN AND BRENT KENDALL BY KRIS MAHER Protesters gathered at Washington’s Dulles airport in 2017 after the Trump administration imposed travel restrictions on some nations. were no campaign promises of a Muslim ban and there was no Version 1.0 of a travel ban, the administration’s position looks a lot better,” said Kermit Roosevelt, a law professor at the University of Pennsylvania. The Supreme Court has tread carefully when considering a handful of preliminary matters involving the travel ban and other disputed Trump administration policies, suggesting the justices may be reluctant to pare back Mr. Trump’s authority in ways that could curtail the powers of future presidents. In lower-court litigation, Justice Department lawyers have had to defend the immigration policy not only from opposing counsel but also from Mr. Trump’s own tweets and comments, which judges have suggested undercut official arguments that the ban is aimed Gina Gobert’s 12-year-old daughter was detained overnight at a police station in Oakdale, La., after allegedly talking to schoolmates about a social-media post she said she received that threatened violence against the school. The supposed threat came at a highly sensitive time—six days after a high-school shooting in Parkland, Fla., that left 17 dead. School officials interviewed the Oakdale sixth-grader and deemed the story false and that she received no threat. They turned the matter over to local police, who charged the girl with felony “terrorizing.” Her mother said she would fight the charge on the grounds that the allegation is unfounded and “based on hearsay.” She is awaiting a court date. After the Parkland shooting, schools around the country are taking a zero-tolerance stance on threats and involving law enforcement more frequently for matters that they used to handle on their own. Mrs. Gobert’s daughter is among at least 350 students in U.S. schools who have been arrested, charged or both in threat cases since Feb. 14, the day of the Parkland shooting, according to a Wall Street Journal review of incidents as reported by school districts, police departments and in news stories. School administrators, prosecutors and law-enforce- Threats Were Up After Shooting The Educator’s School Safety Network, an Ohio nonprofit that focuses on safety training for teachers and school staff, found an increase of more than 300% in threats and incidents against schools in the 30 days after a shooting at a high school in Parkland, Fla., on February 14, with an average of 59 each school day compared with 13 previously. ment officials say they have seen a big uptick in school threats since the Parkland shooting, possibly due to copycats and an increased awareness by students encouraged to report them. The officials are warning parents and students in memos, community meetings and school assemblies that language perceived as threatening, even done in jest, could land younger students in juvenile detention centers and older ones in jail. “You can’t joke about this stuff. It’s just unacceptable behavior in today’s world,” said Sheriff Craig DuMond in Delaware County in New York, where an 8-year-old was arrested in March on a felony charge of terroristic threat for allegedly Amy Klinger, founder and director of programs for the safety network, said the numbers are declining but aren’t back to where they were before the Parkland shooting that left 17 dead. “There are kids being arrested today that would have not gotten arrested for the same thing in January,” Ms. Klinger said. “We have come to some sort of place where people realize you can‘t say that stuff, and if you do, we’re going to take you at your word,” she added. threatening to burn down his school in Davenport, N.Y. The offenses range from misdemeanors to felonies, with many still wending their way through the legal process. Even before that happens, the students often are expelled. Some of the threats had the potential to end in tragedy. In northern Virginia, an 18-yearold student last month was charged with threatening to harm people on school property after he allegedly threatened violence via social media, according to the Associated Press. Police said they found 200 rounds of ammunition during a search of his home. Some officials cite the warnings to local law enforcement and the Federal Bureau of Investigation about Nikolas Cruz, the accused Parkland killer, as a reason to take all threats seriously. “If you threaten a school, you are going to be charged,” said Eric Smith, a prosecutor in Macomb County in Michigan, where 54 students have been charged in school-threat cases in the two months since Parkland, up from 17 in all of last year. “We get a lot of kids saying they were just joking, wanted attention, were acting out against bullies. Law enforcement doesn’t know if it’s real or not.” In the case involving Mrs. Gobert’s daughter, Principal Jarrett Granger at Oakdale Middle School, from which the girl was expelled, didn’t return calls for comment. But in a statement to a local news station, he said that on Feb. 20 the girl told other students she had received a threat through social media about harm coming to all three of the town’s schools the next day. He said an interview with the girl found the information false. “Considering the recent events at schools across the nation, I did not feel that any information should be ignored,” Mr. Granger told KPLC channel 7 in Lake Charles, La. Oakdale Police Chief Joseph Lockett Sr. said the incident is under investigation. Mrs. Gobert said she believes girls who were bullying her daughter played a role in the incident. Her daughter now attends an alternative school. at protecting national security, not discriminating against Muslims. Solicitor General Noel Francisco is likely to face similar questions Wednesday. In legal filings, Mr. Francisco argues the courts have no business examining the travel ban at all. “Congress has granted the president sweeping power to suspend or restrict entry of aliens abroad,” he writes. ©T&CO. 2018 While the dispute involves a number of familiar legal questions involving the interpretation of statutes and constitutional provisions, Mr. Trump’s habit of regularly tweeting and otherwise declaring his opinions has added additional dimensions. “One is the question of when the executive can free itself from the taint of earlier remarks or earlier actions, because if you pretend there Schools Take Zero-Tolerance Approach BY TAWNELL D. HOBBS Bill Cosby’s defense lawyers are struggling to locate a witness they say will help the entertainer discredit his main accuser in a sexual-assault trial that is speeding to conclusion. Judge Steven O’Neill gave defense attorneys until Monday to find a woman who had been a friend of the accuser, Andrea Constand, when she said Mr. Cosby drugged and assaulted her at his home in a Philadelphia suburb in January 2004. “I was weak. I was limp, and I just could not fight him off,” Ms. Constand, the former director of operations of Temple University’s women’s basketball team, told the jury last week. Defense lawyers have said the witness, Sheri Williams, would testify that Ms. Constand was fully aware of Mr. Cosby’s romantic interest in her and “could not have been the unwitting victim” prosecutors claim she was. On Thursday, defense lawyers filed an affidavit from a private investigator who said he tried to serve a subpoena on Ms. Williams or contact her a total of eight times in recent weeks, according to defense attorneys. Ms. Williams couldn’t be reached for comment. BILL CLARK/CQ ROLL CALL/NEWSCOM/ZUMA PRESS WASHINGTON—The Supreme Court on Wednesday will consider whether President Donald Trump can legally restrict entry to the U.S. for travelers from several Muslimmajority countries, tackling a central issue of his presidency. The case traces back to a defining moment in Mr. Trump’s campaign, when he called for “a total and complete shutdown of Muslims entering the United States.” That idea evolved through three travel bans of varying character and severity, the latest issued in September 2017. The ban has become more measured in some respects, as the White House has sought to withstand legal scrutiny, though the current travel prohibitions have no expiration date, a contrast from the temporary nature of the earlier bans. To prevail, the government may have to persuade the justices that the current order is untainted by religious bias, contrary to the findings of some lower courts. The administration also will contend that the ban would help prevent terrorist attacks. Clarifying the scope of the president’s power over immigration and national-security policy is a momentous task in itself. But in a matter so closely tied to Mr. Trump’s own instincts and style, the case amounts to something of a personal test for the president, as well as a legal one. LIGHT LAYERS FOR SPRING TIFFANY CELEBRATION® RINGS 800 843 3269 | TIFFANY.COM FROM LEFT: METRO NASHVILLE POLICE DEPARTMENT/REUTERS; WADE PAYNE/THE TENNESSEAN/ASSOCIATED PRESS Man With Rifle Kills Four at Restaurant . A4 | Monday, April 23, 2018 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL. U.S. NEWS Fears Ease on Firing of No. 2 at Justice Tenure of Rosenstein appears safer after he assures Trump, draws support from Sessions BY PETER NICHOLAS AND REBECCA BALLHAUS Not long ago, President Donald Trump’s advisers believed he would soon fire the Justice Department official overseeing a Russia investigation he calls a “witch hunt,” a step that could set off a cascade of resignations and a potential crisis. But in recent days a series of events have played out that have calmed the situation, easing fears that Mr. Trump would imminently move against Deputy Attorney General Rod Rosenstein. In a private meeting at the White House on April 12, Mr. Rosenstein told the president he wasn’t a target of the Russia investigation. During the meeting, Mr. Rosenstein left the impression that the president was “in no jeopardy,” as one senior White House official briefed on the exchange described it. It is unclear exactly what was said in the room. Telling a person he isn’t a target of a probe doesn’t mean that prosecutors have con- cluded their investigation, but rather that they don’t have sufficient evidence at the time tying the person to a crime. Mr. Trump last week added to his legal team former New York City Mayor and U.S. Attorney Rudy Giuliani, whose self-described mission is bringing the probe to a quick close—a goal that has eluded the Trump team and remains important to the president. On Sunday, White House legislative affairs director Marc Short said on NBC’s “Meet the Press” of Mr. Rosenstein and Special Counsel Robert Mueller, “As far as I know, the president has no intention of firing these individuals.” Asked why the president wouldn’t definitively lay to rest speculation that he was considering the dismissals, Mr. Short said, “Because you don’t know how far off this investigation is going to veer. Right now, he has no intention of firing him.” In another development that potentially solidifies Mr. Rosenstein’s position, Attorney General Jeff Sessions warned White House counsel Donald McGahn last week that he would consider quitting if Mr. Trump were to fire his deputy. Mr. Trump himself addressed the investigation Sunday, tweeting in response to Four Former Presidents Gather to Honor Barbara Bush reports that Republican lawmakers were asking Mr. Sessions to investigate former FBI Director James Comey and former Democratic presidential candidate Hillary Clinton, “Good luck with that request!” While Mr. Trump has made plain his frustration with Mr. Sessions for recusing himself from the Russia probe, White House officials have repeatedly advised him that the attorney general should stay on the job and that pushing him out would create a backlash. Over the past year, Mr. Trump has been apt to change his mind when it comes to personnel, souring on officials who had seemed secure and Pompeo Set for Rebuke by Panel HOUSTON—Barbara Bush was fondly remembered at a memorial service Saturday as the fierce captain of an American political dynasty. Before more than 1,000 people, including four former presidents, at St. Martin’s Episcopal Church, speakers lauded Mrs. Bush as a loving but steel-tough “enforcer” who steered a powerful family through trying times. She was the second woman in U.S. history to be the wife of one president and the mother of another. “She called her style a benev- olent dictatorship, but honestly, it wasn’t always benevolent,” her son Jeb Bush recalled. Many also made note of her quick, sometimes biting, wit— a central characteristic that helped her resonate with everyday people across the political spectrum. Mrs. Bush died Tuesday at her home at age 92 with her husband at her side. Two days earlier, a family spokesman said in a statement that she was in failing health and had declined continued medical treatment. —Bradley Olson FROM PAGE ONE STOCKS Continued from Page One been worsening for years. Investors say it began nearly a decade ago, when post-financial-crisis regulation prevented banks from trading for themselves, and forced them to hold larger amounts of capital—thereby shrinking their inventory of riskier assets. This, in turn, reduced banks’ ability to serve as intermediaries between buyers and sellers. “It’s like going into a grocery store and there’s nothing on the shelves,” said Jeffrey Cleveland, who said liquidity is a hot topic among the traders he confers with regularly as chief economist at Los Angeles money manager Payden & Rygel. In the U.S. stock market, half of the more than 8,500 listed companies trade less than 100,000 shares a day—a tiny sliver of what big stocks trade, according to an April 10 report from the Securities and Exchange Commission. The SEC is weighing changes to create more liquidity in small-cap stocks, such as potentially concentrating trading in such shares to a single exchange. “Thinly traded securities and their investors deserve a market structure that fits their particular needs,” Brett Redfearn, head of the SEC’s Division of Trading and Markets, said at a conference in New York last week. Even in the world’s deepest bond market—U.S. government debt—liquidity has worsened as trading activity can’t keep up with booming supply. The Federal Reserve’s network of primary dealers, which are required to bid at government bond auctions, reported $455 Downsizing The average size behind buy and sell quotes for U.S. listed options has shrunk dramatically this year amid heightened market volatility. 400 contracts 300 200 100 0 2015 ’16 ’17 ’18 Note: Data are for options with monthly expiration dates. Source: ORATS THE WALL STREET JOURNAL. billion of daily Treasury debt trades for the seven days ended April 11. That figure has declined since 2007—even though since that time, tradable Treasury debt has more than tripled. The recent spike in market volatility “suggests there is good reason to worry about The SEC is weighing changes to create more liquidity in small-cap stocks. how well liquidity will be provided during episodes of market duress,” Charles Himmelberg, a Goldman Sachs Group Inc. economist, wrote in a recent report. “This could contribute to price declines and possibly prolonged periods of financial instability.” With less confidence that they can raise cash to make new purchases or meet client redemptions, some investors have sold more than they initially intended for fear that they might not be able to sell at a future time. “You might as well sell when the liquidity is there” because it might not be there another day, said Marc Bushallow, managing director of fixed income at Manning & Napier. This year’s volatility has even hampered liquidity in the popular E-mini S&P 500 futures on the Chicago Mercantile Exchange, a derivative product widely used for betting on the stock market’s direction or hedging against market swings. In the most active Emini contract, the average number of contracts available to be bought or sold at the best price slumped from more than 500 in October to just 96 in March, according to MayStreet LLC, a data-analytics company. In the options market, liquidity has deteriorated as new exchanges and more products have diluted trading, analysts say. Liquidity for options in February was worse than in August 2015, when China’s unexpected devaluation of the yuan sent markets reeling, according to Option Research and Technology Services. In March, Rohan Gupte, who trades at home, looked to add options on Amazon.com Inc. But when he noticed buy and sell prices further apart than usual, he decided not to pull the trigger. Wider spreads have become more commonplace among big tech stocks and indexes, causing him to back away from the market at times. “I just avoid doing that,” Mr. Gupte said. Even one of the most popular contracts has experienced much thinner trading. The number of contracts backing buy and sell options quotes on the SPDR S&P 500 ExchangeTraded Fund Trust, which tracks the S&P 500 index, dropped off dramatically in February and March, falling by more than 30% from last year’s average, data from S3 show. In the corporate bond market, investors say they sometimes have to break orders into smaller pieces to complete larger purchases. But since a series of smaller trades takes more time, investors say the market can move against them while they are trying to buy. “We like certain bonds at a given price, but we’re not even done building our position and they’re five points higher,” said Matt Freund, co-chief investment officer at Calamos Investments. Some traders believe liquidity issues may not last. With the Trump administration rolling back bank regulation, they hope trading could improve if banks are allowed to hold more assets that the current rules define as risky. Traders say smaller bond transactions haven’t been much affected. In corporate bonds, bid-ask spreads have been tighter than where they were before the financial crisis. During recent bursts of market volatility—from the 2013 spike in Treasury yields when the Fed started talking about tapering its bond purchases to the February surge in the Cboe Volatility Index— those spreads barely budged. Another reason for less liquidity: many investors are more closely tracking bond indexes, creating large demand for newly issued bonds but little appetite for older ones. The problem with investors managing against an index is that “everyone is chasing the same stuff,” Payden & Rygel’s Mr. Cleveland said. —Alexander Osipovich and Daniel Kruger contributed to this article. WASHINGTON—A Senate committee is on track to vote Monday against endorsing the nomination of CIA Director Mike Pompeo to be secretary of state, which would mark an unusual rebuke to a central member of President Donald Trump’s foreign-policy team. The Senate Foreign Relations Committee is scheduled to vote on Mr. Pompeo’s nomination on Monday evening. All of the panel’s Democrats have said they would oppose the former congressman’s nomination, and they have been joined by one Republican, Sen. Rand Paul of Kentucky. That gives Mr. Pompeo’s opponents a majority on the committee, which is composed of 11 Republicans and 10 Democrats. Under Senate procedures, the nomination can still be brought to the chamber’s floor, where the math is more favorable for Mr. Pompeo and most senators believe he is likely be confirmed. Still, Mr. Pompeo would be the only secretary of state in modern history to be confirmed by the full Senate without winning a committee endorsement. One Democrat who isn’t on the foreign relations panel, Sen. Heidi Heitkamp of North Dakota, has said she would support Mr. Pompeo, and she could be joined by other red-state Democrats, especially those facing re-election this year. Some Republicans on Sunday criticized the committee’s Democrats for opposing Mr. Pompeo’s nomination. Sen. Bob Corker (R., Tenn.), the chairman of the Senate Foreign Relations Committee, called Mr. Pompeo “highly qualified” and said, “It’s just sad that our nation has devolved politically to this point.” More than 25 Democrats have said they oppose Mr. Pompeo, including five who voted in January 2017 for him to be director of the Central Intelligence Agency. Several have said that the qualifications for being CIA director are different from those for secretary of state, and have raised concerns about whether Mr. Pompeo’s hawkish stances would hinder his ability to conduct diplomacy. Sen. Dianne Feinstein (D., Calif.), who opposes Mr. Pompeo’s nomination, said on CBS that the CIA director’s past statements were “a bit of a put-off for me.” Still, she mentioned Mr. Pompeo’s role in negotiations with North Korea over the terms of a planned meeting between Mr. Trump and North Korean leader Kim Jong Un. Mr. Pompeo traveled to North Korea recently to meet with Mr. Kim. “I think it’s very important that if the president goes, that the meeting between Kim Jong Un and our president goes well,” Ms. Feinstein said. Administration Clears Boost for World Bank BY JOSH ZUMBRUN AND STEPHEN FIDLER WASHINGTON—The Trump administration is backing a $13 billion increase in funding for the World Bank, putting aside its skepticism of the big government-backed institutions that manage the global economy, in part because it wants the World Bank as a balance to China’s growing international influence. The change, which will allow the bank to increase lending to poor-country clients, comes after what European and other officials described as difficult negotiations over tough terms demanded by the U.S. Treasury Secretary Steven Mnuchin said Saturday the increase in funding would allow the World Bank to shift resources to poorer borrowers and away from countries better able to finance their own development objectives. The capital boost could help make it a stronger counterweight to Chinese lending, including from the Beijing-led Asian Infrastructure Investment Bank, which is growing rapidly. President Donald Trump has repeatedly signaled a suspicion of multilateral institutions and initiatives, including the World Trade Organization which attempts to settle disputes in global trade. The U.S. Treasury had been sharply critical of the bank. The World Bank had wanted to move forward with the increase last year, but the U.S. blocked it, shifting the discussion into 2018. The U.S. is the only country with veto power over any changes in bank structure, so funding increases can’t proceed without Washington’s support. The U.S. support came with strings attached: Growth in World Bank salaries will be capped. Countries receiving loans from the World Bank “graduate” to less-subsidized loans as their income levels rise. “We will lend more over time to the lower-middle-income countries,” World Bank President Jim Yong Kim said at a news briefing. YURI GRIPAS/REUTERS PAUL MORSE/THE OFFICE OF GEORGE H.W. BUSH BY REBECCA BALLHAUS SAYING GOODBYE: From left: Laura and George W. Bush, Bill and Hillary Clinton, Barack Obama, George H.W. Bush, Michelle Obama and Melania Trump attended Barbara Bush’s funeral in Houston on Saturday. The photo was posted on Twitter on Sunday. retaining those whose position appeared shaky. But White House officials now believe the president won’t dismiss Messrs. Rosenstein or Mueller anytime soon. Asked on Wednesday whether he might do so, Mr. Trump dismissed the notion by saying that the rumor had swirled for months, but “they’re still here.” Lawmakers are considering legislation aimed at protecting Mr. Mueller’s probe from White House interference. This week, the Senate Judiciary Committee is set to vote on a bill that would prevent Mr. Mueller from being fired without good cause while the Russia investigation continues. World Bank President Jim Yong Kim in Washington on Saturday. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A5 The future of wealth since 1818. . A6 | Monday, April 23, 2018 THE WALL STREET JOURNAL. WORLD NEWS Outlines Mnuchin Signals China Trade Trip Xi Vision for Beijing welcomes Treasury chief’s interest in visit to discuss dispute Treasury Secretary Steven Mnuchin says he may be heading to Beijing for trade negotiations, suggesting an easing of U.S.-China tensions that have widened to include big-name companies in both countries. Mr. Mnuchin said Saturday he is considering the China trip, and on Sunday, China’s Commerce Ministry said in a terse statement that “the Chinese side welcomes this.” The display of good will, following weeks of harsh words from both sides, gives rise to hope of a thaw in a trade stalemate that has seen both countries slap tariffs on some goods and threaten to impose them on a lengthening list of products. “It’s very likely” that Mr. Mnuchin will make the trip, said a Chinese official with knowledge of Beijing’s decision-making process. Mr. Mnuchin, who declined to comment on the timing of the visit, said he is “cautiously optimistic” about an agreement with Beijing that could defuse the bilateral trade conflict, which has rattled world markets in recent weeks. Mr. Mnuchin told reporters Saturday that he met with Yi Gang, China’s central-bank governor, at the spring meeting of the International Monetary Fund. Mr. Yi passed along Mr. Mnuchin’s message about his interest in going to Beijing, according to people familiar with the matter. U.S. officials say Mr. Mnuchin might be accompanied by other U.S. officials, including U.S. Trade Representative Robert Lighthizer. The ANDREW HARRER/BLOOMBERG NEWS By Lingling Wei in Beijing and Bob Davis in Washington U.S. Treasury Secretary Steven Mnuchin said that a trip to China was under consideration. Trump’s Aides Split On Trade Hard Line Steven Mnuchin, the U.S. Treasury secretary, is joined by Larry Kudlow, director of the National Economic Council, in favoring a softer approach to trade negotiations with China. They see Chinese President Xi Jinping’s recent speech pledging to ease restrictions on foreign autos as a significant concession, say individuals familiar with the deliberations. prospect of a Mnuchin trip to Beijing has divided administration advisers, some of whom argue he could get ensnared in negotiations that would yield marginal results. The Trump administration has Others, including White House trade adviser Peter Navarro, favor a tougher line. They argue that Mr. Xi’s pledges don’t represent a significant liberalization and that recent tariffs imposed by China on U.S. agriculture require a sharp response. Those arguing for a tougher response have been pushing to expand any possible trip to include U.S. Trade Representative Robert Lighthizer, who has long been a critic of Chinese economic practices, and perhaps others. criticized prior administrations for being too willing to accept minor changes in Chinese practices. The overtures come as tensions between the governments have already affected major technology companies on both sides. Last week, the U.S. barred American businesses from supplying technology to ZTE Corp., a large Chinese maker of telecom equipment, for seven years. Shortly after that announcement, China’s antitrust regulators warned that they have “hard-to-resolve” concerns about Qualcomm Inc.’s planned $44 billion purchase of NXP Semiconductors NV. Both countries could get hurt in the trade battle, but anxiety is running particularly high in China following the U.S. ban on ZTE, long viewed as a national champion for its effort to take a global lead in establishing 5G mobile internet networks. In an internal report dated April 20, an economist at China’s state-run Assets Supervision and Administration Commission said the U.S. action against ZTE would have a crippling impact on a wide swath of the state-owned sector, including China’s three large telecom carriers and their suppliers. “Against the backdrop of a trade war, this incident has triggered a lot of anxiety,” wrote Wang Jiang, author of the report, which was reviewed by The Wall Street Journal. The U.S. Commerce Department took the action after concluding that ZTE had broken a year-old settlement to resolve alleged violations involving sales to Iran and other countries. On Friday, the Commerce Department said it was willing to consider new information from ZTE, which, in a filing with the Hong Kong stock exchange Sunday said it was “making active communications with relevant parties and seeking a solution.” Still, the U.S. action threatens to cut off ZTE’s supply chain and disrupt those of other Chinese companies such as the China Aerospace Science and Industry Corp., the main contractor for the Chinese space program, Mr. Wang wrote in the report. He said ZTE couldn't find substitutes for most of the chips and other products it purchased from its American suppliers. While calling ZTE’s actions “extremely stupid,” Mr. Wang suggested the government put in place plans to protect other Chinese companies that could be targeted by the U.S. President Donald Trump on April 5 threatened to hit another $100 billion in Chinese imports with tariffs in a separate dispute over intellectual property. U.S. business groups with ties to the administration said a list of items to be targeted has largely been completed. U.S.-China trade clash thwarts Google......................... B4 Future as Tech Power BY JOSH CHIN BEIJING—President Xi Jinping outlined an updated vision for China’s future as an internet and technology power, pledging more state support for sectors caught up in a trade fight with the U.S. Speaking at a conclave on cyberspace that ended Saturday, Mr. Xi called on officials, enterprises and researchers to redouble efforts to achieve breakthroughs in “core technologies” like semiconductors—an area where China lags behind the U.S. The development of new information technologies “presents the Chinese people with an opportunity you rarely see in a thousand years,” Mr. Xi said, according to an account of his speech published by the official Xinhua News Agency. “We must keenly seize the historic opportunity.” Mr. Xi’s speech echoes themes in a landmark address in 2016 in which he set out a blueprint for China to become an “internet superpower.” In this week’s speech, Mr. Xi added a call to create a fair market environment, improve protections of intellectual property and guard against monopolies, taking aim at factors Chinese companies have said are barriers to innovation and to attracting foreign investment. Mr. Xi also pushed hard for Chinese companies to collaborate with the military in pursuing new technologies. So called civil-military fusion has taken on increasing importance in the party’s plans for developing artificial intelligence, quantum communications and other advanced fields. The world’s ‘smartest’ shirt. An enduring classic: our 18kt gold wheat-link necklace Bask in the glow of polished 18kt gold. The iconic design This shirt looks and feels just like high quality cotton, but hidden behind its exterior is a clever blend of technical, quick drying fibres including super tough polyamide – which means its performance is in a different class. Compared to cotton, it’s far more durable and also very easy to care for. With its trim-fitting, smart-casual look and high-performance design, the Freelance Shirt pairs well with our Envoy Jacket and Trousers for a durable business travel wardrobe. 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Offer expires 31 May 2018. Offer code U106. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A7 WORLD NEWS KUALA LUMPUR, Malaysia—Palestinian electrical engineer Fadi al-Batsh was on his way to a mosque outside Malaysia’s capital for dawn prayers when he was shot dead by an attacker who fled on a motorcycle. By Jake Maxwell Watts And Rory Jones Hamas, the Palestinian militant and political organization that governs the Gaza Strip, blamed Israel for Mr. Batsh’s death on Saturday. Hamas leader Ismail Haniyeh said Mr. Batsh was a member of the group, with “an honorable reputation in science.” Mr. Batsh’s father said his son wasn’t a member of the group. An Israeli government spokesman declined to comment on the allegations. Israel’s defense minister, Avigdor Lieberman, on Sunday told Israeli radio Mr. Batsh was “no saint” and that he likely had been killed in “a settling of scores among terrorist organizations.” Israel and the U.S. have officially labeled Hamas a terrorist group. Mr. Batsh, 35 years old, was a senior lecturer at the University of Kuala Lumpur and did research on power management in a variety of areas, from batteries and solar systems to electrical grids. He was the co-author of a paper published in 2014 on the Institute of Physics’ online platform IOPscience that focused on the challenges of providing a stable power supply for unmanned aerial vehicles to make them more reliable. The use of drones by Israel’s adversaries, for surveillance and as weapons, has become an increasing concern for Israel’s armed forces. Last year, an Israeli warplane shot down a drone the government said was launched by Hamas in Gaza and was nearing Israeli airspace. Malaysia’s deputy prime minister, Ahmad Zahid Hamidi, said Mr. Batsh might have been viewed as a threat by a country “in conflict with the Palestinians.” Malaysian state media quoted Mr. Ahmad Zahid as saying Mr. Batsh was an expert on “rockets.” He MOHD RASFAN/AGENCE FRANCE-PRESSE/GETTY IMAGES Israel, Hamas Trade Barbs Over Malaysia Killing Fadi Al-Batsh’s students in Kuala Lumpur learn of his death. Hamas blamed Israel for the killing of the Palestinian engineer Saturday. said the killers were believed to be Europeans linked to a foreign intelligence agency. Police said they are investigating the shooting. They said the gunman fired 10 shots at Mr. Batsh before escaping with the driver of the motorcycle. In Gaza on Sunday, members of Mr. Batsh’s family and others gathered in a tent below a sign reading: “Qassam Brigades mourns its martyred leader. The engineer Fadi Mohammed al-Batsh.” The Izz al-Din alQassam Brigades is Hamas’s military wing. Armed members of the group attended. Mr. Batsh’s father, who was in the tent on Sunday, denied his son was a part of Hamas and said his son didn’t work on drones or rockets. He blamed Israel’s Mossad intelligence agency for his son’s death. “Its main goal is to assassinate every Arab and Muslim brain, especially the Palestinian ones.” As Israel has improved its defenses against rocket attacks and improved its ability to detect and destroy tunnels used by Hamas militants to enter Israel to conduct guerrilla attacks, Hamas has sought new weapons, Israeli defense analysts say. “Since Israel has successfully developed defense sys- tems against the rockets and the missiles and…new technological regarding terror tunnels, Hamas was left almost with nothing,” said Kobi Michael, research fellow at the Tel Aviv-based Institute for National Security Studies. He said drones armed with explosives present a more serious threat than rockets and missiles because they can fly low and evade antimissile systems. In addition to the drone downed last year, Israel has said it intercepted a drone off Gaza’s coast in 2015. The year before, Israel shot down an alleged Hamas drone above the Israeli port of Ashdod. In December 2016, Hamas accused Israeli secret-service agents of shooting dead Mohammed al-Zouari in Tunisia. He was a member of Hamas and supervised the group’s drone program, Israel has long suspected Hamas officials have trained and developed new technologies in Muslim-majority Malaysia. Hamas denied training personnel in Malaysia. Malaysia has said it doesn’t have a military relationship with Hamas or any other group in the Palestinian territories. —Dov Lieber and Yantoultra Ngui contributed to this article. KABUL—A suspected Islamic State suicide bomber struck a voter-registration center in the Afghan capital on Sunday, killBy Habib Khan Totakhil, Ehsanullah Amiri and Craig Nelson ing at least 52 people in an attack aimed at inciting sectarian strife and undermining long-delayed parliamentary elections. The attacker detonated his explosive belt among a crowd of Afghans who had lined up outside the center, a government-rented building, in the mainly Shiite Muslim district of Dashte Barchi in western Kabul to obtain the identification cards they needed to cast their ballots in the elections, scheduled for Oct. 20. Islamic State said it was behind the bombing and identified the bomber as a Pakistani man, assertions that couldn’t be independently verified. A statement by the Sunni extremist group’s Amaq news agency said the man had targeted an election gathering of Shiites, whom it referred to pejoratively as “polytheists.” Sunday’s attack was at least the fourth such assault on a voter-registration site since the enrollment drive for the elections began eight days ago. In the bedlam following the bombing, volunteers, their clothes covered in blood, shuttled away the wounded to nearby hospitals, while the covered bodies of the dead lay across the pavement at the entrance of the building, amid the strewn photos and other identification documents that the as- piring voters were clutching in their hands when the blast went off. “Where is my son?” sobbed an elderly woman as she searched among the debris and shrouded human remains for any sign of his fate. “Does anybody know?” Among the dead were 21 women and five children, the Afghan Health Ministry said, adding that more than 112 other people were wounded. 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A8 | Monday, April 23, 2018 THE WALL STREET JOURNAL. WHAT MATTERS TO BARRON’S? FINANCIAL ADVISORS WHO KNOW WHAT MATTERS TO CLIENTS. THE MORE YOU KNOW, THE MORE WE MAKE SENSE. Deep knowledge. Extensive experience. Understanding what’s important to clients. It’s an approach that makes people take note. Including Barron’s. Congratulations to all our financial advisors who made Barron’s Top 1,200 Financial Advisors in America list. Visit edwardjones.com/knowmore Barron’s Magazine’s “America’s Top 1,200 Financial Advisors, State by State,” March 12, 2018. Barron’s Top 1,200 criteria is based on assets under management, revenue produced for the firm, regulatory record, quality of practice, philanthropic work and more. The rating is not indicative of the financial advisor’s future performance. Neither Edward Jones nor any of its financial advisors pay a fee to Barron’s in exchange for the rating. Member SIPC . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A9 WORLD NEWS BY JOSÉ DE CÓRDOBA Nicaraguan President Daniel Ortega canceled an unpopular package of measures to overhaul the country’s social security system, seeking to contain rising unrest after five days of violent street protests that left as many as 26 people dead in this poor Central American nation. In a televised speech on Sunday, Mr. Ortega said he revoked legislation to increase payroll taxes and cut pension benefits to shore up the country’s threadbare social-security fund. “We are revoking, canceling, putting to the side the resolution,” Mr. Ortega said. A new solution to the social security system will have to be hammered out in negotiations with workers and employers, he added. The president said he was also inviting Nicaragua’s Cardinal Leopoldo José Brenes and the country’s bishops to take part in a dialogue with the government and the country’s leading business organization to end the unrest. It wasn’t clear whether Mr. Ortega’s decision to rescind the social-security law would be enough to stop the protests. “The social-security law was the trigger but discontent with government policies, including censorship and excessive force in dealing with the protests, is much broader,” said Michael Shifter, the president of the Inter-American Dialogue think tank in Washington. “It won’t be easy for Ortega to regain control of the streets. The chaos of the past few days has revealed a desire for change in Nicaragua.” On Sunday, looting broke out in the capital Managua, according to social media and local broadcasters. Farmer Banks on Cryptocurrency BY THOMAS GROVE KOLIONOVO, Russia— Farmer Mikhail Shlyapnikov says the best way to revive the ailing economy in this remote village is cutting financial ties to Moscow. Mr. Shlyapnikov has launched a cryptocurrency, the kolion, named after his hamlet some 80 miles southeast of Moscow, buoyed by an initial investment of a half-million dollars from investors in Russia and abroad. Since its launch last year, the currency is slowly becoming a tender of choice here and in surrounding towns for transactions, from milk to tractors. “You don’t see many rubles around here,” Mr. Shlyapnikov said outside his log home one recent day. “We have our own country here, our own currency. We do pretty well for ourselves.” Russia, like many other countries, is weighing whether to embrace or ban cryptocurrencies as President Vladimir Putin orders up rules for the unregulated industry by the summer. As part of their efforts, officials are monitoring Mr. Shlyapnikov’s experiment to understand how cryptocurrencies work. Stepping into this regulatory breach is Mr. Shlyapnikov, a self-described agro-anarchist, who is making a unique test of self-sufficiency in the rural region he says has long been neglected by Moscow. His efforts highlight the divide in Russia between moreprosperous cities and isolated rural communities. As money from gas and oil sales poured into Russia over the past two decades, a middle class emerged in urban centers that uses imported technology and takes holidays abroad. But in small villages, poverty reigns amid crumbling infrastructure, dwindling populations, and poor government services. Mr. Shlyapnikov, a portly man with a gray beard who is known locally as Uncle Misha, wants to expand the use of the THOMAS GROVE/THE WALL STREET JOURNAL Nicaragua Reverses Plan Amid Protests Mikhail Shlyapnikov stands next to the logo for his kolion cryptocurrency, which has made inroads in his village southeast of Moscow. kolion so that residents of Kolionovo and other nearby villages can pay each other for municipal services like snow and trash removal, which are already largely performed by residents themselves. For now, he says he has gotten almost 100 others to use his currency, mostly selling and buying vegetables and dairy products. He has expanded the use of kolion in the local economy through a loan system where he provides aspiring farmers with an incubator and 50 chicks. The chicks grow into chickens and start laying eggs. The farmer gives half the eggs back to Mr. Shlyapnikov and can sell the other half as they see fit. There is only one condition: the transactions should be made in kolions. “Banks don’t want to lend to small farmers,” said Mr. Shlyapnikov. “So we created our own currency.” He said he wasn’t personally profiting, In rural Russia, residents often don’t have access to affordable credit. and appeared to live frugally. The tactic is popular in a part of rural Russia where residents don’t have access to affordable credit. Russian banks have tried to raise penetration in small towns and villages, and Russia’s postal service opened a bank in 2016, hoping to fill the gap. But interest rates at most retail banks are often high at more than 10%. Financial instability after the 1991 fall of the Soviet Union fueled flirtations with a variety of alternatives to traditional financial instruments that ended badly. Cryptocurrencies have sparked new interest in the possibilities of working outside the Russian financial system and the volatile ruble, which lost half of its value in 2014 amid a drop in oil prices. “Uncle Misha seized his moment,” said Ioann Voronin, a cryptocurrency expert and founder of trading platform Tradisys. “When he launched the kolion there was huge inter- est from investors in cryptocurrencies and he’s working to make it part of a real economy.” Cryptocurrencies have become a popular alternative currency both for investment and in the real economy. Online vendors are increasingly launching their own cryptocurrencies that can be used for the goods and services they provide. Since its launch, kolion’s value has largely followed the same rollercoaster trajectory as Bitcoin, the first decentralized worldwide digital currency, but Mr. Shlyapnikov isn’t deterred. “There are ups and downs in trading, but at the end of the day, in Kolionovo you will always be able to buy milk with it, you can buy meat with it,” Mr. Shlyapnikov said. CONGRATULATIONS: BILL ANDREW MARC CHARETH DOUG DEWALD TIMOTHY FINUCAN MARK FORTIER KIM HOFFMAN ALLEN HOMRA TOM KLIETHERMES GLENN KOLOD JEFFREY KOLOD JENNIFER MARCONTELL TROY NELSON RYAN SCOTT DEAN SEIBEL DAN STEVENS GREG TSCHETTER . A10 | Monday, April 23, 2018 * *** THE WALL STREET JOURNAL. WORLD NEWS Rise China Students Clamor: ‘#MeToo’ Hopes For Freeing Old allegations spark new movements at universities, prompting government backlash SUMMIT Continued from Page One as lifting sanctions, until North Korea has substantially dismantled its nuclear programs,” a senior Trump administration official said on Sunday. “If North Korea is willing to move quickly to denuclearize, then the sky is the limit. All sorts of good things can happen,” the official added. Mr. Kim announced Saturday after a meeting of the central committee of North Korea’s ruling party that his country would close its nuclear test site and suspend longrange missile tests. The statement has been hailed as an important move to establish a good atmosphere for a summit meeting that is expected to be held outside of northeast Asia in late May or June. Mr. Trump himself described it as “big progress” in a tweet on Friday, though in a Twitter message Sunday he added a note of caution. “We are a long way from conclusion on North Korea, maybe things will work out, and maybe they won’t—only time will tell.” In his address Saturday, Mr. Kim also offered hints that he wouldn’t be giving up nuclear weapons. During Mr. Kim’s meeting with Chinese President Xi Jinping in Beijing last month, the Chinese Foreign Ministry quoted the North Korean leader as saying that he A student at Peking University, above, committed suicide after alleging her professor raped her. Family Planning Association, more than 30% of male and female university students say they have experienced sexual harassment or sexual violence. No similar #MeToo movement has taken hold in business, the media or other fields, as it has in the U.S.—a situation Chinese and foreign experts largely attribute to government control. “The obstacles for anybody going public in China are exponentially higher than for somebody in the U.S. Then add all the factors that inhibit women in other countries, like fear of retribution and jeopardizing their career,” said Leta Hong Fincher, author of the forthcoming book “Betraying Big Brother: The Feminist Awakening in China.” The government’s handling of the fledgling #MeToo effort in China is in keeping with how it deals with other social issues. While accounts of sexual harassment have been cenfavored “phased, synchronized measures to achieve peace.” In a meeting in Pyongyang over the Easter weekend, Mr. Kim tried to push Central Intelligence Agency Director Mike Pompeo toward a phased agreement in which each side would make paired concessions on a timetable that could stretch out for years, according to a person familiar with the matter. But the Trump administration is wary of making economic and diplomatic concessions up front for steps to dismantle the North Korean arsenal that would only be taken later. The administration favors what one person called a “big bang” approach, in which major concessions would be made by each side early on. “A freeze in itself is easily reversed,” the senior Trump administration official said. “When it comes to allowing economic activity to resume, that is something North Korea is going to have to earn.” Some experts say there may be ways to make sure that the steps taken during the initial phase cannot be easily reversed. Joel S. Wit, a former State Department official, said officials from the two sides could negotiate procedures that would make the shuttering of North Korea’s nuclear test site irreversible. This might also involve visits by international monitors to the site. Given the decades of enmity between the two sides, sored online, the government isn’t necessarily opposed to efforts to fight harassment. In 2015, for example, even as Beijing censored a popular online documentary about pollution to control public outrage, it was also pushing ambitious plans to fight smog. No similar movement has taken hold in business, the media or other fields here. In 2014, the Education Ministry called for more efforts to strengthen teacher morality in classrooms, and specifically forbade sexual harassment or improper relations with students. This year, the ministry said it had zero tolerance for such behavior and that it was working on long-term mechanisms to combat it. Last week, in a rare instance of public protest in Beijing, scores of Renmin University students gathered outside a classroom where a professor— accused of sexual harassment by a former student—was teaching, demanding that the school and professor respond. After Renmin University released a statement saying it would investigate the reports of misconduct, the 70-odd students dispersed. The school later published rules on its website that prohibit sexual harassment and teachers from having “improper relations” with students. The school declined a request for comment. “It’s very rare, what’s happening at all these university campuses,” Ms. Hong Fincher said. “It’s pretty astonishing.” The government is quick to clamp down on any signs of collective mobilization. Of Korean Detainees BY JONATHAN CHENG SEOUL—North Korean reassurances about the fate of three Americans detained in the country have raised hopes for their possible release ahead of a summit between President Donald Trump and North Korean leader Kim Jong Un. “I’m a lot more hopeful now,” said Sol Kim, the 27-year-old son of Tony Kim, a KoreanAmerican accounting professor North Korea detained a year ago. During Central Intelligence Agency Director Mike Pompeo’s trip to Pyongyang over Easter weekend, the North Korean leader offered assurances that a summit with Mr. Trump could be paired with the release of the three U.S. citizens, people briefed on the meeting said. Mr. Trump said separately last week that his team was “fighting very diligently to get the three Americans back.” In addition to Tony Kim, North Korea is also holding Kim Hak-song and Kim Dong-chul. The three men aren’t related. Only one of the men, Kim Dong-chul, has been charged. Two years ago this week, he was sentenced to 10 years of hard labor on charges of spying and stealing state secrets. Tony Kim and Kim Hak-song were affiliated with Pyongyang University of Science and Technology, a university in the North Korean capital supported by donations from overseas Christian organizations and founded by a Korean-American businessman. AHN YOUNG-JOON/ASSOCIATED PRESS BEIJING—A decades-old case of alleged rape and suicide at a prestigious university is giving China a #MeToo moment—and showing the constraints confronted by social movements in the authoritarian-ruled country. Since the rape allegation against a professor resurfaced this month, a wave of calls for action has followed, with three professors at another university in Beijing being accused of sexual harassment and a teaching assistant at a third Beijing university being accused of rape. The proliferating student action is an indication of the simmering interest—and pentup anger—surrounding sexual harassment in China. Government officials—and students say university officials—have reacted swiftly to tamp down #MeToo discussions, with censors deleting posts by those seeking to share their experiences. Students say those who have publicly called for more information about the decades-old case say they have been summoned into meetings with teachers, quizzed about their associates and told to stop speaking out. So far, the #MeToo debate appears to be limited to universities. In recent months, hundreds of students and alumni from dozens of schools have signed letters petitioning universities to address sexual harassment. According to a 2016 survey by the nonprofit China SU WEIZHONG/IMAGINECHINA/ASSOCIATED PRESS BY TE-PING CHEN Spurring China’s #MeToo moment is renewed interest in the 1998 death of Peking University student Gao Yan, who was allegedly raped by one of her professors and then committed suicide. In an interview this month, the then-dean of the university’s Chinese studies department said the incident wasn’t openly discussed. Twenty years later, as China observed a traditional holiday for remembering the dead, friends began sharing Ms. Gao’s tale online. In one widely circulated essay, a former classmate of Ms. Gao’s described herself as having been inspired by people in the U.S. and elsewhere who have reported similar cases. The story quickly went viral, with many readers indignant over the school’s handling of the case, including—as the university later confirmed—that the professor involved received only a disciplinary warning. Peking University didn’t respond to a request for comment. Addressing Ms. Gao’s case, the university said on April 8 that it would reflect on “the lessons of historical experience” and promised to do more to protect students. It said the university had issued the disciplinary warning against the professor after police determined in 1998 that he had behaved improperly toward Ms. Gao. Nanjing University in eastern China, where the accused professor was working this year, terminated his employment this month, citing the Gao incident. The professor didn’t respond to a request for comment. This month, Chinese media reports said the professor denied the charges as “malicious slander.” —Xiao Xiao and Zhang Chunying contributed to this article. North Korea said it would close its nuclear test site and suspend long-range missile tests. Mr. Wit said a phased process to build up trust and confidence before taking ambitious steps is logical. “There has to be a period of confidence-building between the two countries,” Mr. Wit said. “That is one of the advantages of a phased approach. Each side can monitor the other, and if the U.S. finds North Korea is not living up to its promises, it can stop before moving to the next phase.” But there is also a widespread perception among officials in Washington that North Korea has used previous rounds of negotiations to pursue economic benefits and sanctions relief without abandoning its nuclear weapons program and agreeing on the difficult question of verification arrangements. “I have a hard time imagining everything happening all at once because it is too big a step to take,” said Robert L. Gallucci, a professor at Georgetown University and the chief negotiator with North Korea during the Clinton administration. “A successful outcome will require some staging. But I think everybody, the United States and others, will not want any serious sanction relief to be given to the North until we are confident they have dismantled their fissile-material production capability and extendedrange ballistic missile capability as well.” North Korean officials have urged a phased approach to denuclearization before. In a meeting in Europe in 2013 with former U.S. officials, North Korean government of- ficials described a threephase process. The first phase would involve a freeze of the North’s nuclear activities to be followed by a stage in which the Pyongyang’s nuclear programs would be disabled. In the final stage, they would be dismantled. Under the North Korean approach, the U.S. would take reciprocal economic, diplomatic and security steps during each phase. The two sides would spell out the ultimate objectives in a declaration that would be drafted at the start of the process. While a moratorium on missile and nuclear tests would have some security benefits, the administration is seeking a more far-reaching agreement. “They are not going to get the sort of relief from economic sanctions I am sure they are looking for in the absence of dramatic progress in dismantling their programs,” the senior administration official said. Mr. Pompeo’s visit to Pyongyang was meant to gauge North Korea’s willingness to abandon its nuclear weapons. Messrs. Pompeo and Kim also discussed the possible release of three U.S. citizens detained in North Korea and the location options for a possible summit of the two leaders, according to people familiar with the trip. Mr. Pompeo’s trip lasted just a day, and he didn’t stay overnight in the city, these people said. WORLD WATCH SYRIA TONY GENTILE/PRESS POOL Inspectors Enter Site Of Alleged Attack SHOW OF FAITH: Newly ordained priests lay on the floor as Pope Francis led a Mass in Saint Peter’s Basilica at the Vatican on Sunday. An international team of inspectors entered Douma to investigate a suspected chemicalweapons attack that killed dozens of people this month and resulted in a retaliatory U.S.-led missile strike. The fact-finding mission for the Organization for the Prohibition of Chemical Weapons has had trouble securing permission from the Syrian government and Russian military forces to enter the area. But on Saturday, the inspectors collected samples, the group said. The inspections could help determine whether chemical weapons were used, even though the regime of President Bashar al-Assad had agreed several years ago to give them up. U.S. officials have said they suspect chlorine and possibly a nerve agent were used on the formerly rebel-held area, killing at least 43 and injuring dozens in the April 7 attack. Photographs showed victims foaming at the mouth. —Julian E. Barnes FRANCE Lawmakers Move to Tighten Immigration The National Assembly approved legislation that would tighten immigration and asylum laws, but a group of lawmakers from President Emmanuel Macron’s party abstained from voting. The legislation would double the time migrants can be detained, speed their deportation and strengthen police powers to search illegal immigrants. But the vote exposed unusual opposition from within Mr. Macron’s large centrist majority, some of whose members have criticized the proposal as being too harsh on migrants. The measure will now be sent to the Senate for consideration. —Sam Schechner . THE WALL STREET JOURNAL. ©2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6473 Monday, April 23, 2018 | A11 Our launch partners: . THE WALL STREET JOURNAL. A12 | Monday, April 23, 2018 IN DEPTH GE Among those hard hit by GE stock losses have been company retirees, including former factory workers who took advantage of a stock-ownership plan to build their savings. For decades, the company has had a program that encourages employees to buy GE shares by offering to match 50% of worker contributions, which were taken directly from paychecks. The fall in GE stock prices has put more of the financial burden of retirement on pensions. More than 600,000 people have pensions from GE, which is one of many employers struggling with those obligations. Pension plans sponsored by S&P Composite 1500 companies have an average funding level of 87% and a combined unfunded liability of $286 billion, according to Mercer. In the public sector, state and local governments have an aggregate unfunded liability of $1.4 trillion, according to Pew Charitable Trusts. With 71.4% of assets needed to cover its pension li- ROBOTS Continued from Page One oids, which backers say are more intuitive than traffic lights, aren’t invincible. One, whom its builders call Thamuk, sustained injuries to his legs and chest when a car rammed into his concrete pedestal. The bespectacled robot was awaiting repairs at the lab of his creator, Thérèse IzayKirongozi. Thamuk’s torso had been disconnected from his lower extremities and was resting on two Coke crates, ready to be rewired to restore movement to his waist. Down the hall, also sliced in two, sat Didier, one of Mrs. Izay-Kirongozi’s earliest specimens, awaiting a new deployment near Kinshasa’s airport. “He had the worst accident we’ve ever seen. It was really fatal,” the engineer said. “He was 4 years old.” Mrs. Izay-Kirongozi’s 10 designers and engineers nurse the metal creatures back to health when they fall victim to a hit-and-run. “They’re super easy to understand,” she said. “When he’s pointing his arms your way, you know you can JOSHUA LOTT FOR THE WALL STREET JOURNAL (3) Much Obliged GE has one of the largest numbers of retirees in a private U.S. pension plan… …though the company plan has been underfunded… 700 thousand $20 billion 600 Retirees/ former employees 529,000 500 400 …and many company retirees who bought GE stock during their working years have suffered signiﬁcant losses. 100% 75 10 50 0 25 0 –10 300 Active employees 89,000 0 ’12 ’14 ’16 –30 –75 ’08 ’10 ’12 ’14 ’16 2008 that uses a form of 3-D printing to make metal parts, including ones for GE jet engines. The annual gatherings give investors a chance to air complaints, from CEO pay to environmental pollution. This year, retirees are expected to ask whether the company can make good on its promises. “We never thought GE would do this to us,” said John Phelps, who worked more than 40 years at GE’s silicone plant in Waterford, N.Y., which was sold in 2006. “We believed they would do their best to take care of us.” Pension stress THE WALL STREET JOURNAL. Mr. Phelps, a former union man who runs an advocacy group for GE retirees, said many fear for their pensions and other benefits. The ability of the company to meet all of its financial obligations has been strained in recent years; its annual dividend payment of more than $8 billion was unsustainable because the industrial divisions didn’t grow enough to offset the loss of the financial-services business that for years helped earnings. Companies from all kinds of industries have long tapped GE for executives because of its reputation for excellence. For workers, a job at GE was a job for life. That changed in the 1980s when the company cut layers of its workforce during a period of austerity that earned former chief executive Jack Welch the nickname “Neutron Jack.” go. When he’s pointing the other way, you have to stop.” A few glitches still need to be worked out. The robots are solar-powered and can’t always operate on cloudy days. They also don’t work at night. Some are equipped with speakers to shout commands. Roaring motors and blasting horns often drown them out. Still, motorists are pleased the machines have at least partly taken over the job of humans. “They don’t want money,” said Moise Ntumba, leaning out of his minibus taxi. Traffic is infamous in this sprawling capital of 12 million on the Congo River. Minibus taxis—known as “Spirits of Life” or “Spirits of Death” depending on their road-worthiness—chase each other on potholed streets that downpours turn into grimy rivulets. Cars jump curbs and roll over sidewalks to get ahead. The few regular traffic lights are often disabled by power cuts. The World Health Organization estimates the rate of annual road deaths in the vast, conflict-torn nation is world’s the fourth highest, behind Thailand, Malawi and Liberia, and more than three times that of the U.S. The robots are a “perfect metaphor for contemporary Congo,” where few citizens have access to basic government services, said Bruno Verbergt, an official of the Royal Africa Museum in Belgium. “This kind of workaround is how people survive.” The museumk bought a female-looking robot called Moseka— “girl” in the Lingala language—for its collection. So far, Mrs. Izay-Kirongozi has sold 18 traffic robots for $15,000 to $25,000 apiece to municipalities in Congo. She still pays for their maintenance out of her own pocket at her lab, tucked behind a rundown amusement park owned by her family on the outskirts of Kinshasa. Cadet Mbambi, the lab’s design chief, tries to give each robot a different expression and accessories and believes their human shape lends them more authority over unruly drivers. “We are changing the faces, because we are also not all the same,” he said. The first version of Moseka—sporting black braids, hoop earrings and, in contrast to her shimmering brothers, a red metal skirt—conducts traffic at Kinshasa’s Nelson Man- Deep Dive GE's market losses over the past 12 months surpass some past landmark tumbles. Market value loss, in billions GE $140 84 Valeant 66 Enron 60 GM 45 Lehman Bear Stearns 25 Note: GE measures last 12 months. Valeant reﬂects loss since peak on Aug. 5, 2015. Others reﬂect losses from peak value to bankruptcy. Source: FactSet ’10 ’12 ’14 ’16 THE WALL STREET JOURNAL. Sources: SEC ﬁlings (pension plan); FactSet abilities, GE is one of the worst-funded large corporate pension plans in the U.S., according to an April report by consulting firm Milliman Inc. GE’s pension obligations, nearly $100 billion at the end of 2017, are underfunded by almost $30 billion. GE expects to borrow $6 billion this year to contribute to the plan. Rising interest rates, which increase the expected returns on plan assets, also will reduce the shortfall. In 2015, GE stopped supplemental health-care plans for many retirees and substituted a subsidy for private coverage. That change, plus a reduction in retiree life insurance, cut obligations by $3.3 billion. Investors, many of them GE retirees, will gather Wednesday for the annual shareholder meeting. It will be held inside one of GE’s newest facilities, a design center near Pittsburgh WEEKLY DATA –100 –40 2006 Buying more shares GE –50 100 2008 ’10 –25 –20 200 Dow Jones Industrial Average With the rise of the global economy at the turn of the century, the company began shifting operations and jobs overseas. By the end of 2017, about a third of GE’s 313,000 employees were based in the U.S., compared with 60% two decades ago. Ben Marruffo worked at GE’s Morrison, Ill., appliance controls plant for 42 years until his 2008 retirement. The facility, about 130 miles west of Chicago, opened in the late 1940s and closed in 2010. GE sold its home-appliance business to Chinese company Haier Group in 2016 for $5.6 billion. Mr. Marruffo grew up a few miles from the plant and never moved far. He was one of eight children, and five of his brothers also worked at the GE plant. His father worked at a steel mill for 40 years, and Mr. Marruffo said he remembered his father coming home with holes burned in his clothes from the molten metal. Mr. Marruffo, 71, started with GE as an apprentice, working in different engineering and manufacturing areas. Just like many business experts, he respected GE’s management. Mr. Marruffo accumulated GE stock through the company’s Savings and Security Plan. He figured the company was just about invincible, which made the fall in its stock price devastating. He sold some last year but still owns about 6,000 shares. He now regrets he didn’t sell more. For years Mr. Marruffo didn’t pay much attention to the stock price, he said, but after watching half of his money evaporate, he checks every day. “I look at the stock market at the end of the day and wonder if it is has hit its bottom,” he said, “and how long it will take to recover what it has lost.” KAYANA SZYMCZAK/THE WALL STREET JOURNAL Stock purchase plan Ben Marruffo bought stock via a GE plan and saw its value fall. He holds his old ID card, above, and a photo of his trainee class. “I never planned on retiring and having to go back to work,” said Gary Zabroski. He remains optimistic that Mr. Flannery can turn around GE’s fortunes. “You kind of hold your breath and hope there isn’t another shoe to drop,” he said. GE stock has long been seen as a safe investment, with the good fortune of the 125-yearold company a reflection of the strength of the U.S. economy. Many people unconnected to GE kept the stock in their investment portfolios. Jack Ennis, a retired New Jersey schoolteacher who is ANDREAS HAJDU/EPA/SHUTTERSTOCK Continued from Page One twice the amount that vanished when Enron Corp. collapsed in 2001—and more than the combined market capitalization erased by the bankruptcies of Lehman Brothers and General Motors during the financial crisis. Longer term, GE’s market cap has fallen more than $460 billion since its 2000 peak. GE’s recent losses haven’t been caused by scandal, catastrophic economic conditions or a market meltdown. They have arisen from badly timed investments, troubles in key markets and overly rosy financial projections that together have triggered a restructuring that could break apart the company. GE executives have said that most of the company’s businesses were doing well, despite problems of the past year, and that the company has enough cash to fund operations and the dividend. “I am keenly aware of the pain our stock performance and dividend cut have caused with investors, retirees and their families,” said John Flannery, GE’s chief executive. The company is focused on improving its performance and earning back trust, he said. “This is a show-me moment,” Mr. Flannery said, “and the most impactful thing we can do is continue to make GE simpler and stronger. We will not let up until the job is done.” On Friday, GE reported its latest quarterly results, which included rising profits in its aviation and health-care units and continued woes in its power unit. Mr. Flannery backed his 2018 profit targets and said the company was making progress on its turnaround efforts. About 43% of GE shareholders are retail investors, people who own stock in their personal accounts, according to S&P Global Market Intelligence. That compares with 32% at Johnson & Johnson and 21% at Boeing Co. 63, began buying GE stock in 1980 when he started investing for his mother after his father died. He compared GE’s decline with such long-gone companies as RCA, Union Carbide and Allied Signal. Mr. Ennis said he has seen GE go from “America’s trusted consumer lightbulb and appliance provider” to a “convoluted conglomerate heavily focused on finance and communications.” He blamed former chief executive Jeff Immelt, who retired last summer after 16 years at the helm, and the GE board. Including dividends, GE stock gained 8% over the Immelt years, while the S&P 500 rose 214%. “Sadly, investor confidence is a difficult thing to win back once it’s lost,” Mr. Ennis said. Jack Feigh, 69, traveled for different jobs at the company—California, Kansas City, Louisville—before retiring in 2007 from the appliance division in Salt Lake City. His parents were bakers who owned a cake shop, and Mr. Feigh recalled how selfemployment left them with little more than Social Security after they retired. He was determined to do better for his wife and three children, contributing the maximum amount from his weekly paycheck to buy GE stock. He was encouraged by co-workers doing the same. Older workers retired with plenty of savings. Arm-waving, camera-equipped robot tackles the Kinshasa traffic. dela roundabout, a four-way intersection framed by supermarket billboards, construction fences and the skeleton of an unfinished building. “Her light is very bright, so even when you’re far away you can see her,” said Raymond Mawete, sitting in a dilapidated sedan on the side of the road. Mr. Mawete said he couldn’t comment on how the robots compare to regular traffic lights. “I’ve never been to the United States,” he said, “so I don’t know these traffic lights you’re talking about.” Mrs. Izay-Kirongozi said she was inspired to build the traffic robots after repeatedly witnessing grisly accidents on her way to work. Merely refashioning regular traffic lights seemed too simple. “For us, the robots are an innovation,” she said. She added she isn’t restricting them to human figures: “Why not build a dog at some point?” She hopes the daily encounter with her robots will en- While he was working, Mr. Feigh would use his dividends to buy more GE shares. “At the time, I didn’t think you could beat that,” he said. Mr. Feigh retired after more than 30 years at GE. When the company’s share price tumbled in the financial crisis, he lost almost $300,000 in value. “Employees need to think very carefully about investing their own money beyond 10% in company stock,” said Corey Rosen, founder of the National Center for Employee Ownership, a nonprofit that works with companies. “If you are looking at retirement, then diversification is a good thing.” In hindsight, Mr. Feigh agrees. But at the time of the financial crisis, he thought most stocks were getting battered so he might as well stick with GE. At the start of 2017, he had about $190,000 in GE stock, which is now worth about $70,000. He consulted with a financial planner about selling what was left, but was advised to hold the stock. It was bound to go up, he said the planner told him. Mr. Feigh now doubts that it will, at least in his lifetime. “I thought I was doing it right, but apparently I wasn’t,” he said. He hasn’t talked to his family much about the losses, he said, other than to vent that his “once-proud retirement was going up in smoke.” Mr. Feigh depends on his pension and Social Security checks. He uses the GE dividend to pay his car insurance. He and his wife have put planned vacations on hold, including dreams of a cruise in Europe and a trip to Australia. “The way GE’s stock is going,” he said, “we might lose it all.” —Heather Gillers contributed to this article. courage young Congolese to study new technologies and build human capital in an economy that survives mostly on the export of raw materials—including cobalt and other minerals that power electric cars and mobile phones developed in the West. One part of the population is strongly in favor of the robots. “He’s a joy for us traffic police because it is a chance for us to rest,” said Sergeant Commissar Joseph Kalabanga, pointing to the robot stationed outside Congo’s parliament, as an impatient truck driver pressed into oncoming traffic. “It’s dangerous work.” Instead of standing in the middle of the road, where they used to direct traffic, Sergeant Kalabanga and several of his colleagues were inspecting drivers from each side of the intersection—to catch those ignoring the robot’s commands. “If the police aren’t there, they do what they want,” he said. Just then, a motorized rickshaw blasted past the robot’s red light, followed by a black hatchback with missing windows, one of its passenger’s legs in white sneakers dangling out of the opened trunk. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A12A NY * * GREATER NEW YORK Democrat Shelley Mayer, above, and Republican Julie Killian. BY KATE KING AND MIKE VILENSKY A special election Tuesday in Westchester County is attracting an unusual amount of attention because the vote to fill a vacant state Senate seat holds significant sway over the power dynamic in Albany. A Democratic victory in the election would set up a new fight in the legislature’s upper chamber as the party would then likely hold a one-member numerical majority over Republicans. With Democrats already in control of the state Assembly and governor’s office, a victory in Westchester could give the party the coveted trifecta of power over state government. The Senate seat, in New York’s 37th District, was vacated by George Latimer, a Democrat, who was elected executive of Westchester County in November. The election pits Democrat Shelley Mayer, a state assemblywoman backed by labor groups, against Republican Julie Killian, a former Rye City councilwoman. Republicans and political fundraising groups that support real-estate development and charter schools have poured money into the race to block Democrats from gaining full control in Albany. State Democrats and labor groups are doing the same to support Ms. Mayer. In total, more than $2 million has been raised for the race, according to the state Board of Elections. All 63 seats in the Senate are up for grabs in the November election, giving both parties a new chance to attain a majority. Democrats outnumber Republicans by about 30,000 registered voters in the Westchester district, which includes Yonkers, Rye, Mamaroneck, Port Chester and Bedford. The district is one of two New York Senate seats holding special elections Tuesday. The other race, in Bronx County, is expected to be an easy win for Democrats. Even if Ms. Mayer wins in Westchester, Democrats wouldn’t yet have a political majority. A lone wolf, Democratic Sen. Simcha Felder of Brooklyn, sits with Republicans in Albany and counts himself among their ranks. Should Ms. Mayer win, Mr. Felder would effectively decide which party has a majority. Eight other Democrats had been allied with Republicans, but they returned to the fold earlier this month. Mr. Felder has said he will make a decision about his affiliation after the special election. “I’m not a loyal Democrat or Republican,” Mr. Felder said. “Most of my constituents don’t care at all about the parties.” Ms. Mayer, 65 years old, has represented Yonkers in the Assembly since a 2012 special election. An attorney, she previously served as chief counsel for the state Senate Democrats, but her handling of sexual harassment complaints while in that position has recently come under scrutiny. Earlier this month, two female Senate staffers told the New York Daily News that Ms. Mayer and other Senate Democratic officials failed to act on sexual-harassment complaints they made against their male Please see RACE page A12B Cocktail Show Puts New York in the Mix BY CHARLES PASSY The company behind a prominent European bar and cocktail trade event is bringing a spinoff show to New York. Reed Exhibitions, which produces Bar Convent Berlin, a convention that draws around 13,000 industry professionals to the German city annually, will host Bar Convent Brooklyn at the Brooklyn Expo Center on June 12-13. For its inaugural edition, the New York show will be smaller in scale than the Berlin one. It is expected to attract 4,500 professionals, especially bartenders from the metropolitan area if not the broader U.S., according to organizers. About 125 exhibitors, such as spirits companies, will be on hand to showcase their products. Paula November, a Reed Exhibitions vice president, said the company decided to launch the show in New York because it felt there was nothing of its kind in the city. And they saw the omission as all the more glaring given the city’s global pre-eminence in the bar world. “It’s where innovation starts,” she said of the bar scene. Industry insiders note that New York has been without a large-scale cocktail event, for the trade or public, since the Manhattan Cocktail Classic shut down. An attempt last year to relaunch the Classic failed. “New York definitely needs a good show,” said Adam Levy, founder of International Beverage Competitions, a company that produces wine, beers and spirits contests throughout the world. ERIN LEFEVRE FOR THE WALL STREET JOURNAL Spring Sighted in Brooklyn LATE ARRIVAL: Prospect Park was in bloom on Sunday as temperatures hit the 60s. More mild days are forecast this week. SARAH BLESENER FOR THE WALL STREET JOURNAL (2) FROM TOP: MIKE GROLL/ASSOCIATED PRESS; JULIE KILLIAN FOR SENATE Westchester Race Will Help Nudge Control of Senate Congestion in the Crosshairs New Midtown curbs on parking and loading that aim to clear lanes rile drivers, businesses BY PAUL BERGER Parking in Manhattan is difficult enough for limousine, truck and delivery drivers. Now they face an addition obstacle—new traffic restrictions in the heart of Midtown. Parking and loading is prohibited on both sides of most blocks between Sixth and Madison avenues from 45th to 50th streets during morning and evening rush hours, according to a new regulation that took effect April 16. The six-month pilot program, called Clear Curbs, is one of several initiatives launched by the city to combat congestion. In the first three days of the program, officers issued 3,000 tickets and towed 36 vehicles in the area, according to the New York Police Department. Among the biggest casualties of the blitz were companies whose drivers had to leave their vehicle to make deliveries. Parcel carriers reported calling in extra staff to stay with trucks or having to park outside the enforcement zone and haul packages for several blocks along crowded sidewalks. In principle, the regulations were meant to keep lanes clear. In practice, when officers moved a line of cars, they were replaced minutes later by new vehicles or by the same vehicles that simply circled the block. “It’s very unpredictable from day to day,” said Axel Carrion, director of public affairs for United Parcel Service Inc. “It sucks,” said Edward Montano, a food delivery driver whose truck was booted on West 44th Street Vehicles were towed and ticketed after New York City enacted new road restrictions for the morning and evening rush hours. City Is Still Taking Measure of Program New York City Transportation Commissioner Polly Trottenberg said the Clear Curbs pilot program is in its early phase and can be tweaked. The city wants to see whether it can improve traffic speeds and reliability on key streets, while causing minimal disruption to businesses, Ms. Trottenberg said. The city would like some businesses to switch to off- hour deliveries. “It definitely is inconvenient and it can require changing time-honored models,” Ms. Trottenberg said. “But I do think as a city we need to think more about it.” The city also wants to see whether the new regulations are sustainable for the police department, which has deployed additional officers to the targeted areas, she added. A New York Police Department spokesman declined to say how many additional vehicles and officers were being used. before 8:30 a.m. on Friday. The restrictions are in place weekdays from 7 a.m. to 10 a.m. and from 4 p.m. to 7 p.m. As Mr. Montano waited by his vehicle, hoping to get it released so he could finish his deliveries, an NYPD tow truck passed by hauling a FedEx parcel truck. He said it is impossible for him to make his deliveries outside the new time window. “Every day I have to deliver food in the morning,” Mr. Montano said. Since New York Gov. Andrew Cuomo failed to meaningfully advance congestion pricing in this year’s state budget, the focus has shifted to New York City Mayor Bill de Blasio, who has his own proposals for reducing gridlock in the city. The city attributes the congestion to myriad factors including a growing population and increases in tourism and construction. It also points to the rise of ride-hailing services such as Uber, which led to a quadrupling of for-hire trips since 2015 to more than 400,000 a day in 2017. Last fall, Mr. de Blasio unveiled a raft of traffic-easing measures to be rolled out this year. They include beefing up enforcement of block-the-box rules at dozens of busy intersections and the creation of continuous empty curbside lanes across key Midtown cross streets. The new rush-hour parking regulation initiative was introduced during the second half of March in heavily congested sections of Flatbush Avenue in Brooklyn and Roosevelt Avenue in Queens. So far, the police department says, it has issued more than 2,500 summonses and towed more than 230 vehicles in those boroughs as a result of the initiative. The dollar amount of the summonses: $115. Merchants and their suppliers say they are feeling the pain. New York City Councilman Mark Gjonaj, who chairs the committee on small business, said some mom-and-pop firms have seen a drop in business of up to 20% because customers can’t park. “If some of the businesses can survive six months with their bottom line impacted so dramatically, I would be surprised,” he said. On Thursday evening, Kevin Calle, a driver with The Junkluggers, watched from the passenger seat of his truck as officers shut down two lanes on Madison Avenue to tow a vehicle. Mr. Calle, who was parked in a no-standing zone on 48th Street, said the threat of a parking ticket didn’t deter him. A customer had paid for furniture to be removed. “Either way, this is going to have to get done today,” he said. Stringer: Homeless Students Need Help BY CORINNE RAMEY New York City Comptroller Scott Stringer called for policies to increase school attendance of homeless children, following an audit that found more than half of students in shelters were chronically absent from public schools. Some 33,000 children who were enrolled in public schools lived in shelters during the 2015-2016 school year, with 58% chronically absent, according to the comptroller’s office. The Department of Education defines chronically absent as an attendance rate of less than 90%. “As a city, we are defined by how we support our most vulnerable children,” Mr. Stringer, a Democrat, said. “Homeless children need to be a priority—they can’t be invisible to the bureaucracy. But right now, the [city Depart- ment of Education] is fundamentally failing to give them a fair shot.” In a letter sent to the city Department of Education’s chancellor last week, Mr. Stringer suggested the department hire more social workers to work with homeless students and families at schools and in shelters. He also recommended the department adopt policies to avoid placing late-enrolling students, who he said are often transient or homeless, at low-performing schools. A spokesman said the Department of Education would review the recommendations. The department has started new programs such as counseling sessions, busing to admissions fairs, and phone calls and door knocking that are designed to help students in temporary housing, he added. Last month, New York Mayor Bill de Blasio said in a radio interview that the city had invested in helping homeless students but needs to do more. “We’re reorienting the whole shelter system to begin with to localize it more, get people to be 58% Portion of public-school pupils in shelters who are chronically absent in their home borough or hopefully in their home communities so children can go to school in their own neighborhood and not be moved all over the city,” said Mr. de Blasio, a Democrat. The city, he said, had taken steps to help homeless stu- dents with transportation issues by providing MetroCards and bus service. As of April 19, nearly 60,000 people were in New York City homeless shelters, according to city data. More families are living in homeless shelters than in the past, the mayor said, attributing the rise to high housing costs and “the economic reality of the city.” Last month, Mr. Stringer’s office released an audit finding the Department of Education hadn’t followed rules regarding outreach and followup with homeless students who are absent from school. As part of the audit, the comptroller’s office reviewed the records of 73 students who lived in homeless shelters and were chronically absent. The students were absent an average of 41.6 days during the 178day school year, the audit found. . A12B | Monday, April 23, 2018 NY THE WALL STREET JOURNAL. * * GREATER NEW YORK Empty Stores? One Firm Is All In RACE The stretch of Manhattan’s Bleecker Street between Bank and Christopher streets is pockmarked with “for lease” signs, a casualty of the collision of the retail industry’s upheaval and skyrocketing rents. But for Brookfield Property Partners LP, this is the land of opportunity. The PROPERTY global real-estate developer and investor closed a deal to acquire four retail properties with seven storefronts on Bleecker Street. “There’s a lot of vacancy, and we love that,” said Michael Goldban, head of retail leasing for Brookfield Properties, the operating arm of Brookfield Property Partners. “We want this to be a testing ground.” Brookfield Property Partners has taken a contrarian stance toward retail real estate at a time when retailers have been closing stores to adjust to online shopping growth, vacancies have risen in many well-known shopping districts and rents have been falling. But as investors are questioning the longterm prospects of retail real estate, Brookfield is placing its bet on these investments, snapping retail properties up at discounted rates. Last month, Brookfield reached a deal to buy the remaining 66% of shares of GGP Inc. it doesn’t already own for $23.50 a share in cash or stock—below the $24 price many investors and analysts thought the company would fetch. The company bought the Bleecker Street retail properties—about 24,000 square feet—for about $31.5 million from New York REIT Inc., according to a person familiar with the deal. New York REIT purchased the properties, which include 350, 367-369 and 382-384 and 387 Bleecker St., for almost $45 million between 2010 and 2012, according to financial filings. While the acquisition is small compared with the company’s typical investments, the CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL (2) BY KEIKO MORRIS Brookfield, which bought four properties on Bleecker Street, sees opportunities in vacant retail space. properties—three retail condominiums and a long-term leasehold in a cooperative—give the company enough of a presence to stimulate the area, Mr. Goldban said. In addition to reinvigorating the strip, Brookfield intends to create an incubator where emerging online brands or new retail concepts can use the storefronts to test the market and experiment in the brickand-mortar realm. The company also plans to reach out to other owners on the street to come up with a vision for revitalizing the street, as well as bring cultural events and art installations to its Bleecker Street retail spaces through its Arts Brookfield team. And those retail brands that show promise, could have opportunities to grow in other retail properties Brookfield owns, Mr. Goldban said. “We have the comfort to experiment because we’re getting an attractive price,” Mr. Goldban said. Before that strip of Bleecker Street became a destination for national and international luxury designer brands, it was a quaint shopping district in an affluent area with independent, small businesses, including clothing and accessory stores, a book store, bodegas and antique shops, brokers said. That changed starting in the late 1990s and early 2000s, when an influx of upscale brands like Marc Jacobs, Ralph Lauren, Burberry and Michael Kors established a presence on the street. Magnolia Bakery’s appearance on the television show “Sex and the City” in the early 2000s helped catapult the street and still draws tourists to the area to this day. Rents made sense at $100 to $150 a square foot, said Richard Hodos, vice chairman at real estate services firm CBRE Group Inc., but then they started climbing, peaking around $500 to $600 a square foot a few years ago. Rents are now in the $300 to $600 a square foot range with many landlords who bought at the height of the market and need rents at the upper levels, Mr. Hodos said. “If you looked at actual sales, the sales didn’t justify the rents,” Mr. Hodos said, referring to Bleecker Street. Continued from page A12A supervisors in 2010. Ms. Mayer said she referred the complaints to the secretary of the Senate as required by policy. Her opponent in Tuesday’s election dismissed her answer as being inadequate and called on her to drop out of the race. “She is running an entire campaign on being a champion of women,” Ms. Killian said. “It’s pretty clear when she had the opportunity to do the right thing and champion women, she has failed numerous times.” Ms. Mayer said she shared the women’s frustrations and anger and would work to change the Senate’s sexual-harassment policy if elected. “I certainly wish we could have achieved a better result for them,” she said. Meanwhile, Ms. Killian was forced to disavow and return campaign contributions from a supporter who had hosted a fundraiser for the Republican. On Twitter, the supporter disparaged one of the survivors of the February mass shooting at a high school in Parkland, Fla. “I have many times publicly and privately expressed my admiration for the kids in Parkland and the kids they’ve inspired across the country,” Ms. Killian said. “The comments in no way reflect how I feel about that situation.” Ms. Killian, 57 years old, served on the Rye City Council for almost six years and is chairwoman of Rye Action for Children and Teens, a drug- and alcohol-prevention organization. All 63 seats in the New York Senate are up for grabs in the November election. If elected, she said, she would work to secure more state funding for Westchester schools and look for other ways to minimize the area’s property taxes. Ms. Mayer said she would work to pass stronger laws aimed at preventing climate change, protecting abortion rights and minimizing the impact of outside special interests in state elections. GREATER NEW YORK WATCH SYRACUSE CONNECTICUT Two Men Shot Dead Controlled Burn In Separate Incidents Planned in Forest Syracuse police say a complaint about a loud party led them to the victim of a deadly shooting. It was the second in two days in the city in central New York. A crowd was leaving the area around a Cortland Avenue home when police arrived around 3:45 a.m. Sunday. Officers found a man in his 20s had been shot in the head. Police also are investigating a fatal shooting at about 1:30 a.m. Saturday on Hoefler Street. Officers found 24-year-old Lawrence Moore on a front porch, shot in the chest. Another shooting Saturday night on Kenmore Avenue wounded a 36-year-old man. —Associated Press The Department of Energy and Environmental Protection plans to intentionally burn 18 acres of field inside the Tunxis State Forest. Depending on the weather, the agency has scheduled the controlled burn for Monday, during the late morning or midday. The field is located near Route 20 in West Hartland. DEEP officials say the burn is needed to maintain native “warm-season” grasses by killing competition from woody stems that are beginning to encroach on the field. The grasses are considered a critical habitat for a number of wildlife species, especially migratory birds such as the Meadowlark, Bobolink and Savannah Sparrow. —Associated Press every one deserves a decent place to live. Learn more at habitat.org. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A13 LIFE&ARTS TRAVEL Boomers Embrace the Luxury Van Life Empty nesters and retirees abandon RVs for the freedom and mobility of converted high-end vans THE LATEST LUXURY getaway: a van trip. Attracted by Instagram images of a free-spirited, simpler way to travel, older consumers are turning to vans for their trips, while adding the high-end spin they can afford. Forget the beat-up Volkswagen bus: These travelers are shelling out for custom-fitted Mercedes-Benz or Ram ProMaster vans for their life on the road. “The thing I like so much about van life is the simplicity,” says 55year-old John Kennedy, now on his first big road trip, to California, in his $75,000 revamped Ram ProMaster. Mr. Kennedy, owner of a window-cleaning business in Aspen, Colo., bought the van last summer and two months ago picked it up from a conversion specialist, now outfitted with a double bed, stove and custom maple cabinets. The one thing his van doesn’t have: a bathroom, which means using public facilities. That is a small price to pay for freedom, he says. “It’s being able to go down a road, stop and pull over to sleep, and start again when you’re ready.” The van life—or #vanlife—phenomenon began on social media several years ago with photos of twentysomethings peering out at beach and mountain vistas from vans decorated with flowing drapes and colorful quilts. The images took off on the internet and caught the attention of older consumers who not only can afford luxury setups, but are also at a point in life when they can take extended, if not permanent, time off. Owners of van conversion shops say business is booming, thanks in large part to empty nesters and semi-retirees who can afford a custom van that, all included, can cost $100,000 and up. Blue Ridge Adventure Vehicles in Asheville, N.C., says its business has increased each year in the last three years. More than half of the customers at Vanlife Customs in Denver, are retired or semi-retired, says owner Dave Walsh. “They’re getting rid of their giant motorhomes and doing this,” says Erik Ekman, owner of Outside Van in Portland, Ore. His business has doubled from a year ago, he says, thanks largely to consumers in their 50s and 60s. “That’s when you have the freedom, the mobility and the money,” he says. For that freedom, van travelers give up amenities that other vacationers would see as a deal breaker. The spaces are tiny, especially for two people, and life with a portable toilet isn’t for everyone. And while Vanlifers bypass travel expenses including lodging and restaurants, gas prices this summer are expected to be the highest in years. Retirement experts say the van life reflects a new way that people want to retire. Rather than work straight through until a certain age, more people are spreading out their leisure time, whether it’s between jobs or working a few hours a week as they travel. “Boomers are reinventing re- Edward and Betsy Lawlor explored Valley of Fire State Park in Nevada in 2016. Above, John Kennedy in Moab, Utah, earlier this year; below, Melody Shapiro’s Mercedes-Benz Sprinter van. tirement and saying ‘I get to live my life the way I want,’” says Jaye Smith, the 63-year-old co-founder of Reboot Partners, a consulting firm that specializes in retirement and career breaks. For some people, sleeping in the van at night can take some getting used to. “As soon as the sun sets, I get petrified,” says Lauren Costantini, a 48-year-old former chief executive of a medical-device company who is semi-retired. “I put the window coverings up and I feel better.” She recently returned home to Boulder, Colo., after a successful four-month trip across the country on her own. Edward Lawlor two years ago bought a custom remodeled Mercedes-Benz Sprinter van from Outside Van for $130,000, which he takes out on the road with his wife Betsy for three to five weeks every few months. The former dean at Washington University in St. Louis is semi-retired and teaches on a flexible schedule. The couple has traveled in the van through New England and Nova Scotia in the summer and to New Orleans and along the Gulf Coast in the winter. The idea for the van came in the summer of 2012, when the couple rented an RV. The vehicle’s size and battery-power limitations meant the Lawlors would take it to campgrounds at night to plug into electricity for air conditioning and the microwave. “We hated it,” says Mr. Lawlor, 63. The campsites were typically crowded and noisy. On the road, they had met couples who converted cargo vans into smaller, more nimble setups. “I decided this would be our ticket,” he says. The Lawlors’ van conversion includes three 12-volt batteries that power the living amenities when the van is parked and turned off. (The batteries recharge by way of an auxiliary power system while the van is running and can last for four days without another charge). The van has a separate heating system, a roof vent with rain sensor that can shut automatically, an induction cook top, refrigerator and microwave oven. A 20-gallon tank supplies water to the kitchen and the shower. Thetford Corp.’s Curve Porta Potti serves in lieu of a built-in bathroom. An aluminumframed bed sits three feet over the floor, allowing for storage beneath. “It’s close quarters,” Mr. Lawlor says. “But you learn little tricks to stay out of each other’s way.” One tip: Don’t try to pass by when someone is cooking. Like many Vanlifers, the Lawlors like that they can park most anywhere overnight with their van, which is about 19 feet long and 8 feet wide and fits snugly into most parking spaces and roadside nooks. He uses a cellphone app called Allstays that provides information on camping and parking restrictions, and hasn’t yet had a problem with overnight stays. “We aim to do all the active things that Vanlifers do,” says Mr. Lawlor. “It’s not for young people alone.” Melody Shapiro, a 74-year old retired psychotherapist in Hood River, Ore., says her Sprinter van, purchased six years ago, offers a private retreat wherever she needs it, whether it’s a mile away by the river or at her son’s house in Monterey, Calif. “I just park it at the house. I can sleep in it, have my coffee in the morning and I don’t wake everybody up.” Is Van Life for You? Try it first: Before forking over the cash for a revamped van, it’s worth considering trying one. Converted vans can be rented by the day from sites such as Outdoorsy.com. Sizing it up: Popular models for Vanlifers include the MercedesBenz Sprinter, Ram ProMaster and Ford Transit. Cargo area—or the living space behind the front seats—typically ranges from 10 to 16 feet long by 4 to 6 feet wide. Ceilings are often just over 6 feet high. Find a specialist: Car companies recommend that consumers use conversion specialists who are familiar with weight and structural limits. “If someone is building a space inside, it’s important that they’re not overloading a vehicle,” says Dave Sowers, head of Ram commercial marketing. Stay safe: Use common sense, experts say: Keep the doors locked, and keep food stowed away from hungry animals. Make sure you add the vehicle to your insurance policy and consider signing up for a roadside assistance program. Camp smart: Popular places for Vanlifers to park include public lands under the federal Bureau of Land Management. People can park or camp in most locations for up to 14 days, says Larry Ridenhour, an outdoor recreation planner with the agency. Park smart: When it comes to parking lots, check on the rules. Some welcome van travelers: “We allow them in our parking lots,” says Walmart spokesman Charles Crowson, though individual store managers have the final say. “If they need provisions, it’s right there at the store.” Still, things can go wrong. In the first two weeks of Ms. Costantini’s cross-country trip, a leak developed in the ceiling while it was raining in California. “That was the most stressful time. I pulled out my pots and pans and was filling them,” she recalls. At a service station in Las Vegas, a $140 repair involving silicone caulking did the job. WORK & FAMILY | By Sue Shellenbarger ROBERT NEUBECKER WHICH CO-WORKERS GET THE WEDDING INVITE? IT’S GREAT to have lots of friends at the office—unless you’re making a guest list for your wedding. Alishan Vazir enjoys his colleagues and would like to invite all 18 of them to his nuptials in November. But he and fiancée, Emily Freeman, have capped their guest list at 130, leaving room for only three of his coworkers. Mr. Vazir, a 26-year-old Falls Church, Va., account manager, senses some are a little hurt. But “just because you’re really cool with and close to a friend at work doesn’t mean you’re going to be cool and close in your personal life,” he says. Socializing with colleagues can be tricky anytime, but planning a wedding thrusts those tensions into the spotlight. Couples agonize over which co-workers to include and how to cushion the hurt among those they leave out. Balancing your needs without damaging relationships requires nuance. Being left out of a colleague’s wedding can evoke childhood memories of being excluded from a sleepover by a playmate who says, “I don’t like you that way.” Everyone involved feels awkward when the image the bride or groom projects at work, as a caring friend and ally, suddenly seems inconsistent with reality, says Melissa Dahl, author of “Cringeworthy,” a book on uncomfortable situations. Portia Williams Edwards and her husband, Rickey, have numerous friends among their co-workers at Dallas/Fort Worth International Airport, where she’s a staff trainer and Mr. Edwards is an inspector. They kept quiet at work about plans for their 2016 wedding and invited only 30 colleagues. “When I got back to work, people came out of the woodwork” complaining about being left out, she says. When one co-worker refused to speak to her, Ms. Edwards smoothed her hurt feelings by promising to invite her to a housewarming party. Wedding trends are squeezing guest lists, which fell last year to an average of 136 from 149 in 2009, according to a survey of 13,000 couples by The Knot, an online wedding-planning marketplace. More couples are choosing smaller, less formal venues like historic mansions or barns, forcing them to cap guest lists at lower levels than allowed by banquet halls or hotels. “Couples are really sticking to friends and family, the people they feel are going to be with them Please see INVITE page A15 FROM TOP: COLLEEN DELIA; MELODY SHAPIRO; BETSY LAWLOR BY ANNE MARIE CHAKER . THE WALL STREET JOURNAL. A14 | Monday, April 23, 2018 LIFE & ARTS WHAT’S YOUR WORKOUT? | By Jen Murphy Kickboxing Her Way to Better Tennis A 75-year-old finds the combat sport builds upper-body strength while helping her think about how to win one-on-one battles Before You Serve, Punch Something If you love tennis, throwing a punch may help put more zip on your forehand. Tennis and combat sports have a lot in common, says Rex Miller, a Thai boxing and tennis coach based in Durham, N.C. Both are meditative and repetitive but extremely physical, he says. “Boxing emphasizes the same skill sets that a tennis player needs: quickness, agility, proper footwork, power—but with agility—and a heavy dose of stamina,” he says. Vera Konig trains with Jimmy Fusaro, above, at Aerospace High Performance Center in New York City. She says kickboxing has improved her upper-body strength, balance and agility while preparing her to play tennis. The Workout On Mondays and Thursdays Ms. Konig meets with her kickboxing trainer, Jimmy Fusaro. Their hourlong workout starts with a warm-up on the punching bags. He then holds up mitts as targets and calls punches—jabs, hooks, uppercuts— for her to throw. She might do squats on a balance board to work her core and legs and push-ups on a balance board to work her shoulders and core. She does upperbody work, like a dumbbell fly, on a stability ball for an added balance challenge. She then might hold the handles of a TheraBand and mimic the twisting trunk motion used in tennis to activate her core. Ms. Konig meets her tennis pro once a week for a 90-minute or two-hour session. “We focus on techniques, like hitting ground strokes deep, as well as game tac- tics and strategy,” she says. “I like that he is always challenging me. It’s the only way I’ll get better.” She and Ms. Shepoiser meet a pro for a two-hour doubles clinic once a week. Ms. Konig had both of her knees replaced in 2015. “I promised my pro I’d be back in eight weeks, and I was,” she says. “The rehab made me rethink my approach to stretching, something I now do every morning to help my mobility.” Her doctor prescribed the recumbent bike, which she rides 30 min- GO TO WORK IN BLISSFUL COMFORT utes twice or three times a week. She also does lower-body exercises like the leg press machine. The Diet Ms. Konig’s breakfast ritual involves a fruit smoothie, coffee, toast with butter and peanut butter and the newspaper. “I only eat fresh bread,” she says. “No Wonder Bread or packaged stuff.” Lunch might be a BLT, grilled Swiss and bacon or a salami sandwich. She often snacks on raw vegetables. “I love fennel,” she says. The Incredible Mother’s Day She also loves to cook. On weekends she makes pasta from scratch. “My husband and I like to share a bottle of wine over a good meal,” she says. “We wake up and discuss what to have for dinner.” Go-to dishes are steak with raspberry sauce or pasta with shrimp and clams. If she’s craving something sweet, she’ll have a ginger ale. The Gear & Cost Dues at West Side Tennis Club in Forest Hills are $6,000 a year. 17999 $ SALE! SAVE $20 Can’t Hear Voices On TV? Our AccuVoice® Speaker uses hearing aid technology to make TV dialogue crystal clear. The Un-Sneaker™ goes to work. To your colleagues, it’s a fashion statement. 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ORDER AT ZVOX.COM CNET That’s not the only parallel, he says. “Balance, turning your hips, finishing or following through, then recovering to the ready position for the next challenge occur in both sports,” Mr. Miller says. Tennis and combat sports require players to play both offense and defense. Strategy is also similar. “You have to know what kind of player you are, how you can best win points,” he says. Boxing can also help tennis players learn how to react to stress and stay focused. “One of the biggest obstacles to tennis success is not letting go of a bad outcome, whether it be a poorly played point or a distraction on the sidelines,” he says. “When you make a mistake in tennis, you have the time until the next point to dwell on it. In kickboxing, when you make a mistake and get popped, you are forced to move on immediately because there is another strike coming in one second.” Tennis greats, including Caroline Wozniacki and Maria Sharapova, have been known to mix fight-based training into their workouts. From October through April, the club charges additional fees to use the indoor courts. Ms. Konig buys a pass for $800 to have unlimited court time during indoor season. She pays $100 an hour for lessons with her tennis pro. She occasionally shares the lesson and cost. Her Wilson Burn 100ULS racket cost $180. Her Adidas tennis sneakers cost $130 and she buys Adidas tennis apparel. Her kickboxing sessions cost $80 each and she paid $40 for her boxing gloves and wraps. ADRIENNE GRUNWALD FOR THE WALL STREET JOURNAL (3); FRANCOISE BROWN (TENNIS) WHEN VERA KONIG asked a tennis pro how to improve her game, he told her to swap her racket for boxing gloves. “If anyone else had suggested kickboxing, I would have laughed,” she says. She’s been hooked on the combat sport for 20 years. Now, at 75, she credits twice-weekly sessions for keeping her competitive on the court. Ms. Konig, a retired college professor based in New York City, describes herself as a lifelong athlete. She grew up skiing, running, swimming and hiking. In her 40s, she started working with a tennis pro. She caught on quickly, but kickboxing elevated her game. “When I added the kickboxing, I saw great improvement to my upper-body strength, balance and agility,” she says. Seven years ago Ms. Konig started competing in National Senior Women’s Tennis Associationsanctioned tournaments. Last year she found a partner her age and she now competes in singles and doubles. “It’s not easy to find someone my age who wants to make that commitment and who will work to develop a partnership,” she says. The pair meet with a tennis pro once a week, but Ms. Konig hasn’t convinced her partner, Jo Shepoiser, to try kickboxing yet. In March, they placed third in their age group at the Barbara Cooper Cup tournament in Winter Park, Fla. Ms. Konig won her singles age category. They are training for the USTA National Women’s Grass Court Championships July 9 to 15 in Forest Hills, N.Y. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A15 LIFE & ARTS J. PAUL GETTY TRUST (2) The Roman sculpture gallery, left, at the Getty Villa, above CULTURAL COMMENTARY Art History, Refreshed BY ERIC GIBSON Getty Bronze, a Hellenistic statue of an athlete so lifelike that he seems caught mid-motion. Taken as a whole, the installation movingly tells the story of man’s growing understanding of himself and his place in the world. Highlights of the second floor include a gallery of Roman portrait busts and another for glass, this last filled with works of such aesthetic and technical refinement as to make one question one’s reflexive sense of 21st-century cultural superiority. Throughout, thanks to the deft use of placement, lighting and wall color, Mr. Potts, working with Senior Designer Amanda Ramirez, has endowed the objects with such presence that they virtually speak for themselves without needing wall texts. Much else is new here, including enough with Plato’s ideas to be able to parse an artist’s riffs, especially when those interpretations are couched in the hermetic language of today’s Conceptual Art. The average visitor will be hardpressed to discern any link between ancient philosophy and Paul Chan’s “Le Baigneur 1,” which consists in the main of a sort of black body stocking attached to a fan so it flaps and billows like those enormous inflatable tube men that retailers use. And they’ll get no help from the catalog, a textbook example of the obscurantist artspeak that passes for criticism today. Then there are the selections. Mr. Grau never makes clear why he chose these artists, so there’s a random, arbitrary feel to the exhibition. But in a category all its own is the Koons, a monumental, multicolored replica of a pile of children’s modeling compound titled “Play-Doh”—get it? Its inclusion seems driven by the desire for a marquee name—even to the point of torpedoing the intellectual respectability of the entire effort. As the Villa reinstallation indicates, the Getty has long been a model of transparency, of tailoring its displays and written materials to make the most remote, recondite subjects accessible to a lay public. If future forays into contemporary art are to meet with success, they will need to meet that exacting standard. Mr. Gibson is the Journal’s Arts in Review editor. BLACK MOUNTAIN CINEMA Los Angeles THE PARADOX of the classical world is that it is ever-present, pervading so many aspects of daily life, and at the same remote to the concerns of that life. So when Timothy Potts, director of the J. Paul Getty Museum, decided to reinstall its collection of antiquities in its Villa, he faced a high bar: how to make that material more accessible and engaging to a 21st-century audience. The context didn’t make the job any easier: Los Angeles, city of the continually new, where surface is all. But he has cleared that bar spectacularly. The Getty Villa is the original J. Paul Getty Museum, a structure— modeled after the ancient Roman Villa dei Papiri in Herculaneum— that was built by Getty himself and that opened in 1974, two years before his death. Previously the collection had been arranged thematically. But Mr. Potts has now reverted to the more traditional chronological approach, with the result that we can now track the history of the ancient world from its beginnings in 6000 B.C. to the late Roman Empire in A.D. 600. The objects include sculpture, pottery, paintings, glass and jewelry. It makes for an extraordinary visual progression. The collection divides naturally into two, with Greece on the first floor and Rome on the second. On the first floor we move from Cycladic figure sculptures, so modern-looking in their simplicity and reductiveness, to “The Victorious Youth,” aka the works pulled from storage and separate galleries devoted to Etruscan art, the real Villa dei Papiri, and J. Paul Getty’s collecting habits. In addition, Mr. Potts has introduced “The Classical World in Context,” a first-floor gallery that will house long-term displays of works from cultures, such as Egypt, that interacted with ancient Greece and Rome. The inaugural show is “Palmyra: Loss and Remembrance,” a selection of funerary portrait sculptures from Copenhagen’s Ny Carlsberg Glyptotek. Combining stylization and keenly observed naturalism, they are powerful presences. Be prepared to be bewitched by “The Beauty of Palmyra”—and to once again seethe over the desecrations of Islamic State. In short, the reinstallation has created a vibrant, multifaceted view of the ancient world that pulls you in and leaves you wanting more. Unfortunately it has stumbled in one area: “Plato in L.A.: Contemporary Artists’ Visions,” featuring work by 11 artists such as Jeff Koons, Mike Kelly and Adrian Piper, explores the role of the philosopher in modern life. Give the Getty credit for standing up for classicism’s continuing relevance at a time when more and more colleges and universities consider it political Kryptonite. But this show, organized by independent curator Donatien Grau, is not the way to proceed. It’s asking a lot of a general audience that it be conversant Sam and Julia Mynhier of Nashville, Tenn., held down spending on her wedding gown and flowers last year so they could invite nearly all of their co-workers at the time to attend. INVITE Continued from page A13 down the road” when deciding whom to invite, says Kristen Maxwell Cooper, The Knot’s editor in chief. It can be hard to keep quiet about wedding plans at work. Nearly nine of 10 couples posted engagement photos on social media, according to a recent survey of 17,862 newlyweds by WeddingWire, an online marketplace. Nicole Anzio and her husband, Thomas, invited only two of her colleagues at the hospital where she works as a nurse to their 2017 wedding. She was concerned when another co-worker started talking up the event, saying, “I’m really excited. I want to come to your wedding,” says Ms. Anzio, of Pittsburgh. She explained their decision as gently as she could, saying, “I’m really sorry, but we have kind of a strict guest list. I hope there are no hard feelings.” The coworker seemed to take the news in stride, and congratulated her warmly after seeing their wedding photos on Facebook. If you work on a small team, it may be best to invite everyone rather than leaving out one or two, Ms. Dahl says. Julia Mynhier, 24, a senior project manager at a Nashville, Tenn., ad agency, posted an invitation to her wedding last year on the office fridge for all 15 of her co-workers, she says. To hold down costs, “I didn’t have extravagant flowers or a top-of-the-line dress. For us, it mattered more to have there the people we wanted, Be extra careful when considering whether to invite your boss. and to have a good time.” It’s also important to look ahead at how guest-list decisions might affect you and your career. “Think about how awkward it will make your everyday life at work if you don’t invite” a particular co-worker, says Davia Lee, a Buellton, Calif., wedding planner. Anne Chertoff, a trend expert with WeddingWire, says that if you’re inviting most of your co-workers on a small team, it’s probably best to invite them all. Whether to include your boss raises other thorny questions. It makes sense if you and your boss share details about your everyday life outside work, Ms. Lee says. Did you tell the boss you were engaged right after it happened? Does he know your dogs’ names? Does she get your holiday card? Taylor Christopherson decided to invite her boss, who heads the dental practice where she works as a hygienist, to her wedding in September, as a gesture of respect. Although he’s not a close friend, “I enjoy him and I thought it would be wonderful to have him there to see that part of my life,” says Ms. Christopherson, 24, of West Chester, Ohio. Her fiancé, Vinny Benedetti, 28, who is a dentist at a different practice, is inviting his boss too, but not the several hygienists he oversees. “I didn’t want to invite a couple of co-workers and not others and make them feel bad,” he says. Consider before inviting higher-ups how they might react to your celebration, says Janean Wadley, a Cedar Hill, Texas, wedding planner. If senior executives are button-down conservatives and your relatives love to party, “you might not want the VP of your company to see your cousin acting a little crazy,” Ms. Wadley says. Break the Code The Enigma Machine World War II relic. Mechanical marvel. Fascinating history. This rare three-rotor Enigma ciphering machine was created and used by the Germans to send secret messages during World War II, making it one of the most historically significant artifacts from the war. Many believe the Allies’ deciphering of the Enigma code shortened the war by at least two years. Few of these vital intelligence tools survived the war, with the handful known to exist currently held by prestigious museums. Circa 1940. 11”w x 133/8”d x 13”h. #30-7143 630 Royal Street, New Orleans, Louisiana • 877-677-2801 • email@example.com • rauantiques.com Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry. Backed by our unprecedented 125% Guarantee, we stand behind each and every piece. . THE WALL STREET JOURNAL. A16 | Monday, April 23, 2018 SPORTS NFL | By Jason Gay Trying to Love the NFL Draft The NFL Draft arrives this week— blasting off Thursday night from Jerry Jones’s intergalactic space biscuit in Arlington, Texas. As always, I like to offer at least five alternatives more exciting than watching the NFL Draft: • Ironing tiny cat outfits. • Eating a hard-boiled egg on the bus. • Trying to find that pen that fell under the couch last month. • Spell-checking a will. • Turtle fight! OK, you are right: I need to stop being such a crank, and get with the program. The NFL Draft may be strange theater, but it’s really popular—the most popular non-sporting sporting event in America, besides golf. It’s so big, the league now takes it on the road, like a monster truck show, or a podcast, schlepping it from New York to Chicago to Philly, and now, JerryWorld. (I’ve heard rumors—lobster claws crossed—it may go next year to Boothbay Harbor, Maine.) For 2018, Fox is joining the TV coverage, squeezing itself onto the bus with ESPN and the NFL Network. The Sporting News reported that the NFL is even more ambitious about its coverage plans: Some league executives envision the draft potentially becoming the sports equivalent of a U.S. presidential election—a sports event televised simultaneously across most or all of the national broadcast networks. Yes! But let’s not stop there. Let’s get C-Span and Comedy Central on the case, too. Nickelodeon. Food Network. Netflix. Public access. Or Bill Belichick’s favorite digital media outlets, “SnapFace” and “Instant-Chat.” This is a wild shift from the early days, when the NFL asked ESPN why anyone would bother watching an event that is basically a series of workplace phone calls. (“Timmy, you’re a Dolphin. Congratulations.”) Today there’s a giant, year-round economy built up around the draft, to the point that “draft guru” is a legitimate profession, and lunatics start publishing “mock drafts” the nanosecond the previous draft ends. Have you ever talked to someone about their mock draft? Think about the time someone at work told you about their NFL fantasy team. Now imagine something 100 times less interesting. I promise I’ll stop whining. It’s just…is there anything in sports with so much conjecture masquerading as insight? Over time, radical thinking evolves into conventional wisdom—and then, abruptly reverts to radical thinking. Teams talk themselves in and out of prospects, rejecting players for the sort of arcane imperfections they used to la- MATT ROURKE/ASSOCIATED PRESS Solomon Thomas, left, greets NFL commissioner Roger Goodell during last year’s NFL Draft, ment on “Seinfeld.” We’d take that guy, but we hear he’s a bad breaker-upper…He’s a close-talker…Did you see that: he double-dipped a chip! The best “controversy” of this year’s draft is the question of whether or not UCLA quarterback Josh Rosen is “too smart” for the NFL. It’s been proposed that Rosen’s millennial mind may be too advanced for the mundanity of football life, as if the 21-year-old will drift back into the pocket during the fourth quarter, and suddenly find himself mentally distracted by unexplained questions of the universe: What is dark matter? Did Shakespeare write all his own plays? Why haven’t I ever seen a baby pigeon? How did the Blazers get swept by New Orleans? I like Josh Rosen. He’s shown self-awareness and depth in his public comments, particularly on the exploitative economy of college sports. The worry over his intellect shows that the NFL is still not a garden of free thinking. For all the veneration of “maverick” coaches, teams seem to prefer players happy to spoon oatmeal while staring at a blank wall. The top pick at this draft again belongs to the Cleveland Browns, who are 1-31 over the last two seasons, which, not to be overly critical, is disappointing. The Browns also possess the fourth pick, and my for- mer Journal colleague, Kevin Clark, now at The Ringer, reported that the Browns have given thought to the idea of drafting two quarterbacks— the idea being that taking two would give them an improved chance to land a franchise-altering one. Of course, the Browns are the Browns, and there’s also the chance Cleveland would just wind up picking two crummy quarterbacks, and be right back there in 2019, picking 11 more. There is quality QB talent in this year’s draft, though not a consensus standout. Besides Rosen— who, rumor had it, was sliding down the depth chart last week— there’s the much-liked Wyoming big man Josh Allen, the Southern California talent Sam Darnold, the 2017 Heisman winner Baker Mayfield of Oklahoma, and the 2016 Heisman winner Lamar Jackson of Louisville. From a pure electricity standpoint, the most exciting player in the draft is probably Penn State running back Saquon Barkley. The Patriots have two picks in the first round, and there’s some thought they could use one to pick a new apprentice for 91-year-old signal caller Tom Brady, or perhaps, a lobster boat repairman for Belichick. Who will get the first hug on Thursday from the NFL Commissioner and Draft Night Hug Machine Roger Goodell? You’ll have to tune into the circus from JerryWorld to see. I’ll stop my groaning and try to watch. In 2018, I like anything on television that isn’t cable news. Weather Draft Day A look at Jason Gay’s mock draft: PICK/TEAM ADVICE 1. Cleveland Browns 2.NewYorkGiants 3. New York Jets 4. Cleveland Browns 5. Denver Broncos 6. Indianapolis Colts 7. Tampa Bay Buccaneers 8. Chicago Bears 9. San Francisco 49ers 10. Oakland Raiders 11. Miami Dolphins 12. Buffalo Bills 13. Washington Redskins 14. Green Bay Packers 15. Arizona Cardinals 16. Baltimore Ravens 17. Los Angeles Chargers 18. Seattle Seahawks 19. DallasCowboys 20. Detroit Lions 21. Cincinnati Bengals 22. Buffalo Bills 23. New England Patriots 24. Carolina Panthers 25. Tennessee Titans 26. Atlanta Falcons 27. New Orleans Saints 28. Pittsburgh Steelers 29. Jacksonville Jaguars 30. Minnesota Vikings 31. New England Patriots 32. Philadelphia Eagles Run for your life! PHEWWW! You’re not a Brown. Consider baseball. Consider retirement. Yes! it’s legal there. See if Andrew Luck is at practice. You were almost in Chicago cold. You were almost in Tampa warmth. Learn to spell “Garoppolo.” Vegas! Do you like losing to New England? Do you like losing to New England? Go Caps! Cheese is a vegetable. You’re going to get so good at golf. I can’t say anything snarky. My in-laws read this. My car is bigger than your stadium. Pete Carroll buys everyone ice cream. Jerry wanted someone else. You have that new Pats coach with the hat. No pressure to win playoff game. You’ll get ripped shoveling snow. Belichick loves jokes. And pranks. Buy the team! It’s for sale. Go Preds! Don’t talk about the Super Bowl. Not really a party town. Not really a football town. No Bortles jokes. Buy a snowmobile. Gronk may ask you to do Jäger shots. If they don’t repeat, it’s your fault. 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. 30s d t Edmonton 50s Vancouver Vancouver Calgary Billings Eugene g 80s 40s Helena Boise 60s 10s 50s Winnipeg ip ttl Seattle 70s 0s 40s 50s P Por d Portland <0 40s 20s Ottawa Bismarckk T Toronto Pau Mpls./St.. Paul 30s oux FFalls ll Pierre Sioux 30s Montreal Augusta A g t 40s t Boston rtford Hartford ew Y New Yorkk 60s 50s 50s A bany b Albany k Milwaukee t Detroit Buffalo l 70s Cl Cleve l d Cleveland 70s 60s Chicago Des es Moines 80s Omaha h Pittsburgh g Philadelphia Philad hil h d l p hi Indianapolis Sacramento Springfield p g Denver 90s hington hi gton D.C. DC Washington San an n Francisco Kansas Ch h Charleston 50s Topeka 50s City 100+ 90s Richmond h d Colorado C L Lou St.. Louis LLouisville Lou ill h Wichita Las 50s p Springs l igh h Raleigh Nashville h V g Vegas 70s Los A Ange Angeles 90s Charlotte Ch l Santa anta Fe 70s Mem phi h Memphis A Atlanta Columbia 100s Ph C b Albuquerque Phoenix Oklahoma kl h City C City Warm Rain San Diego Littlee Rockk 70s Tucson Tuc Birmingham h El Paso Dallas D ll Ft. Worth Cold T-storms Jackson Mobile b 80s 10s 80s A ti Austin Jacksonville J k 20s Stationary t Houston Snow 70s Orlando l d ew Orleans New 30s Ta p Tampa San an Antonio A t i 50s 80s 80s Miami Showers Flurries A h g Anchorage Honolulu l l 80s Reno 40s Salt Lake L ke City C 60s y Cheyenne 60s 70s U.S. Forecasts City Omaha Orlando Philadelphia Phoenix Pittsburgh Portland, Maine Portland, Ore. Sacramento St. Louis Salt Lake City San Francisco Santa Fe Seattle Sioux Falls Wash., D.C. Hi 70 85 68 96 69 58 74 86 59 68 73 75 69 67 69 Today Lo W 45 c 68 t 46 pc 70 s 48 pc 39 s 51 pc 52 pc 51 r 43 t 52 pc 44 pc 46 pc 41 pc 51 pc Tomorrow Hi Lo W 65 43 r 83 62 c 59 52 r 97 71 pc 58 47 r 60 43 s 81 53 pc 86 52 pc 66 50 pc 67 46 s 69 51 pc 75 40 pc 75 50 pc 56 34 r 58 55 r International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Hi 58 77 81 97 64 69 64 76 98 56 55 Today Lo W 49 pc 57 pc 60 s 82 s 48 c 48 t 46 pc 64 r 83 s 45 r 43 r Tomorrow Hi Lo W 56 49 sh 81 61 pc 87 62 s 98 81 pc 73 49 s 64 50 sh 62 52 sh 72 64 t 97 81 s 54 42 sh 55 41 sh City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei City Tokyo Toronto Vancouver Warsaw Zurich Hi 71 72 88 83 71 89 68 78 60 77 96 79 78 82 46 94 68 84 97 75 83 54 77 90 76 89 70 60 60 71 73 Today Lo W 49 t 50 r 65 pc 74 s 56 s 78 c 51 s 50 s 49 pc 54 pc 81 t 63 pc 57 pc 57 pc 27 s 81 pc 47 pc 71 s 70 pc 54 pc 73 sh 48 r 56 r 78 c 63 s 75 t 61 c 42 s 43 pc 48 pc 48 r Tomorrow Hi Lo W 71 51 pc 75 51 pc 88 67 pc 82 72 t 75 56 s 89 77 c 76 57 s 81 52 s 60 46 r 79 53 pc 95 80 t 77 58 pc 76 56 pc 81 56 pc 53 40 pc 95 81 pc 71 50 pc 84 72 s 92 71 pc 73 54 s 84 75 sh 59 46 sh 62 54 pc 91 79 c 75 62 s 85 66 t 71 64 r 55 43 pc 63 47 c 66 51 c 74 46 pc 2 3 4 5 14 6 7 8 9 10 11 12 15 Solve this puzzle online and discuss it at WSJ.com/Puzzles. s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 49 41 r 46 36 r Atlanta 71 58 r 69 54 c Austin 82 53 s 87 56 s Baltimore 67 47 pc 58 51 r Boise 67 44 pc 72 46 s Boston 57 42 s 61 46 pc Burlington 64 43 s 67 47 s Charlotte 59 56 r 70 54 r Chicago 60 45 s 58 41 pc Cleveland 69 49 pc 57 44 r Dallas 77 55 pc 83 59 s Denver 69 30 t 46 25 c Detroit 69 48 pc 56 44 c Honolulu 83 72 s 83 72 sh Houston 79 57 pc 85 60 s Indianapolis 60 50 r 61 49 r Kansas City 69 47 c 70 47 c Las Vegas 93 68 s 93 70 pc Little Rock 67 52 c 75 52 pc Los Angeles 79 55 pc 76 55 pc Miami 85 73 t 85 70 pc Milwaukee 53 42 s 54 38 c Minneapolis 67 44 pc 59 37 c Nashville 69 54 t 66 52 sh New Orleans 75 59 c 78 59 s New York City 63 44 s 58 52 c Oklahoma City 72 48 s 73 47 s Ice Down 30 Nevada city 1 ___ Lama 31 Bit of smoke 2 “Where there’s 32 Way off 16 17 18 ___, there’s...” 33 Drug smuggler’s 19 20 21 3 Bumpkin unit 4 Bullring cheer 34 You can run it up 22 23 24 and pick it up 5 Really amazes 25 26 27 28 29 30 37 Fashionably 6 Young fella 31 32 33 34 35 dated 7 Exasperate 38 Modern 36 37 38 39 8 Big name in marketplace swimwear 40 41 42 39 Sung by a group 9 Like some dental 43 44 45 46 44 Point a finger at floss 45 Submit, as 47 48 49 50 51 10 Not fooled by payment 11 Smell 52 53 54 55 56 57 46 Ranch crew 12 Washed out 58 59 60 48 Corn 14 Wide 61 62 63 49 High-level execs 17 Relaxed 50 Make blank 64 65 66 21 China’s Chou ___ 51 Less common 23 Milwaukee player 52 On the double TUNING IN | By Roger & Kathy Wienberg 24 Khrushchev’s 53 Foot part 22 Hit for the Across 47 1950s torch song country: Abbr. Spinners later made popular by 54 Open slightly 1 Hit for Harry 27 Island visited by covered by Hall Julie London Belafonte the Bounty 55 A quantity of & Oates 52 Complete failure 28 Give free 5 “The Blacklist” 59 What many 25 X-ray units org. 56 “The King and I” tickets to campaigners heroine 26 Miniature sling 8 Eagle’s attack 29 “I need ___” (tired racer 57 Period of history comment) 60 Water, in Paris 13 USMC 31 Responds to no-show 58 Pear variety Previous Puzzle’s Solution the alarm named for a 14 Become fuzzy S C A R A D O A D O B E region of France 34 Bag-screening E R L E T M E N WE B E R 15 BambooC O L D H OM E OWN E R S org. 59 Anvil setting, TWO O F A K I N D S Y N E munching DWE L T D O G E and what the 35 Top-notch mammal S U S A N R E F U N D long song titles A R A I MO K R O G U E 36 Song sung 16 Bob Seger song S E V E N T E E N E I G H T Y have in common by Tevye in heard in Chevy C L I N E S L I P S S S 61 Cons H O A R S E S T I R S “Fiddler on the truck ads A T T S S I N U S Roof” 62 Israeli P R I G T A T T O O I N K S 18 Praise MU S I C AWA R D C H A T submachine guns 40 Store event enthusiastically T B O N E T R E E K I T E S Y N G E O A K S P EW 63 Altar’s place 41 Ocean motion 19 Pint in a pub The contest answer is HEARD. The five longest 64 Points for a field Across answers each contain an animal sound 42 Wallower in 20 Confiscated goal Africa (MEOW, WOOF, NEIGH, OINK, CAW). Five other 21 Pessimistic pal answers in the grid are the animals that make 65 Place to retreat 43 Fairly shared of Winnie-thethese sounds with an extra letter (CHAT is CAT + H, Pooh 66 Software buyer 45 Bar order DOGE is DOG + E, HOARSE is HORSE + A, PRIG is 1 13 PIG + R, CROWD is CROW + D). The added letters, in order of the sounds, spell the contest answer. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A17 OPINION Three Cheers for Internships It’s that time of year. Students hoping to land summer internships are flooding inINSIDE boxes with VIEW their résumés. By Andy Managers Kessler should hire as many as possible. It’s good for the company but even better for the student—and for society. Pay them? Don’t pay them? It doesn’t matter. Just let them in the door. In my junior year of college, I got an internship at HewlettPackard. It was way across the country in Cupertino, Calif., where Apple’s spaceship headquarters is today. To save money, since I had little, I got an apartment with no furniture, slept on the floor, used a shopping cart for a dresser, and borrowed a friend’s bike to get to work. HP was a fun place, with a pretty loose work culture and beer bashes most Fridays. I coded math functions in what’s known as microcode for a future minicomputer, because they didn’t trust the guy designing the chip to do it. I learned a lot about deep technology but nothing about business, marketing or sales. It was a big company, so I also missed a peek into the startup culture then bubbling up in the Bay Area. A shame. Still, I can’t think of anything better for college students than plopping them in the middle of some exciting enterprise. It almost doesn’t matter what the company does; good interns absorb it all. I call it learning by osmosis. Lessons about your industry, trends, pricing and profits can’t help but work their way into the pores and brains of hungry students bored from endless reading assignments and seminars. Put them at the center of whatever a company does— not in the copy room. I can almost guarantee that they’ll be a net positive. The payback usually comes in the form of a single good idea, one productive change that fresh eyes will see while others, especially those sucking up for a promotion, won’t. A few years ago a nasty controversy erupted over intern pay. The Atlantic ran a story, “Why Free Internships Are Immoral.” Unpaid interns for the movie “Black Swan” won a suit against Fox for back pay, later reversed and eventually settled. Sheryl Sandberg’s Lean In organization even caught flak when an editor put out a request for an editorial intern, “part-time, unpaid.” Surely Ms. Sandberg could afford to pay, but an intern’s compensation comes not only from the minimum wage thrown his way. Instead it’s the sum of what he absorbs, which can be priceless. It’s immoral to refuse to hire interns and thus cut them off from this exposure. And hiring interns is getting easier. In January the Labor Department issued guidelines allowing businesses to hire unpaid interns based on seven criteria. According to Labor, “this test allows courts to examine the ‘economic reality’ of the intern-employer relationship to determine which Even without pay, they offer experience far more valuable than most classes. party is the ‘primary beneficiary’ of the relationship.” Simple! Virtually every internship has more value to the intern than the company. I’m not blind—many poor or disadvantaged students can’t afford to work for nothing. Companies should be sensitive to their economic issues and perhaps provide scholarships for their internship. What the heck—colleges pass out scholarships for French and comparative lit like water, but on-the-ground experience is so much more valuable. There is a way around all this. One of the projects I have funded over the past decade is a fellows program with the goal of putting a business wrapper—that is, the exposure I didn’t get at Hewlett-Packard—around smart and typically business-challenged engineering students. Select students each year contact startups they would like to work for. The program then pays the intern’s salary for the summer, since most startups are too small to have their own internship programs. The startups think they are getting a free worker, but the joke is on them. To a person, the students come back knowing more about startups, funding rounds, board decks and venture capital than could be taught in any classroom. Many get hired back after graduation. This is who is inventing the future. The University of Richmond offers every student up to $4,000 “for one approved summer research or internship experience.” Sure, it may just be a tuition rebate. But it would be great if more universities and charitable organizations provided intern-scholarships—rather than funding home building in South America or studies showing the immorality of unpaid interns. The more students who find productive jobs, the better off we’ll all be. A Crisis in Guatemala, Abetted by the U.N. In the struggle to defeat transnational crime in Central America, the U.S. is fia AMERICAS nancing United NaBy Mary tions prosecuAnastasia torial body in O’Grady Guatemala. Yet these U.N. prosecutors are thumbing their noses at the rule of law and seem to be using their power to politicize the Guatemalan judiciary. This is dividing and destabilizing a pivotal democracy in the region. The fragile Guatemalan state is in the crosshairs of Venezuelan dictator Nicolás Maduro and Cuba’s Gen. Raúl Castro. If their allies seize control of Mexico’s southern neighbor via its institutions, as Daniel Ortega has done in Nicaragua, it will have implications for Mexican and American security. The U.N. body, known as the International Commission Against Impunity in Guatemala (CICIG by its Spanish initials), has been in the country since 2007. It has busted some criminals. But its unchecked power has led to abuse, and this should concern U.S. backers. Some of CICIG’s most vociferous defenders hail from Guatemala’s extreme left, which eschews equality under the law and representative democracy. CICIG’s rogue justice has come to the attention of Sen. Roger Wicker (R., Miss.), chairman of the Commission on Security and Cooperation in Europe, also known as the Helsinki Commission. He has scheduled a hearing April 27 to review CICIG’s role in the Guatemalan prosecution and extralegal conviction of a Russian family on the run from Vladimir Putin’s mafia. As I detailed in March 26 and April 19 Americas columns, Igor and Irina Bitkov, and their daughter Anastasia, fled persecution in Russia and became victims of a crime syndicate in Guatemala that was selling false identity documents. Yet Guatemala and CICIG tried the family alongside members of the crime ring that tricked them. They were convicted and given unusually harsh sentences. Guatemalan law and the U.N.’s Palermo Convention say that such migrants are victims, and a Guatemalan constitutional appeals court ruled that the Bitkovs committed no crime. CICIG and Guatemalan prosecutors ignored that ruling, went to a lower court and got a conviction. CICIG will not say why, or why it didn’t prosecute the law firm that solicited the fake documents given to the Bitkovs. Matías Ponce is “head of communications” for CICIG but there is no contact information for him or his office on the CICIG website. I managed to get his cellphone number from a third party and, after repeated tries, made contact with him. I requested his email and wrote to him so I could share with readers CICIG’s explanation of what appears to be abuse of power. He sent me a boilerplate response about CICIG’s work against criminal networks but no answers to my questions. It is unlikely CICIG will answer questions before the Helsinki Commission. Its co-chairman, Rep. Chris Smith (R., N.J.), invited CICIG to appear at a similar hearing he proposed for April 24 in the House Foreign Affairs subcommittee monitoring human rights and U.N. entities. CICIG declined the invitation. That hearing was not scheduled, Instability in Central America will spill into Mexico and spur more migrants to the U.S. though the office of Foreign Affairs Chairman Ed Royce (R., Calif.) told me it’s not dead. If CICIG refuses to cooperate with the Helsinki Commission, it will fuel the feeling among rule-of-law advocates that it has something to hide. CICIG says it is in Guatemala merely to “support” the attorney general in her work “identifying and dismantling” criminal networks and is not involved in politics. But an academic analysis of CICIG by Jonatán Lemus, a Francisco Marroquín University political science professor, suggests otherwise. Mr. Lemus observes that “CICIG has also been criticized for the very same reasons others have praised it: becoming a player in judicial appointments, proposing some controversial reforms to the Guatemalan constitution, and the use of televised conferences to shift the public in its favor. From this perspective, instead of strengthening Guatemalan institutions, the Commission is making national institutions dependent on its assistance.” This dependence drives CICIG deeper into politics. As Mr. Lemus notes, “once immersed in a polarized political system,” an international body designed like CICIG naturally “will face incentives to behave as any domestic bureaucracy trying to maximize its power and resources to ensure its survival.” Without an explanation for the bizarre Bitkov convictions, Guatemalans are left to speculate about CICIG’s motives. Incompetence is one possibility. But once the injustice was publicized and not corrected, that reasoning collapsed. A foreign businessman also makes an easy target for a politically correct prosecutor seeking approval from anticapitalist nongovernmental organizations. Kremlin “influence” cannot be ruled out. Nailing the Bitkovs was a priority for Russia because the family had refused to “donate” large sums to the Putin kitty in Kaliningrad. It would hardly be surprising to learn that Moscow leaned on prosecutors and judges to put the family behind bars. There’s no doubt that something fishy went on, and CICIG prosecutor Iván Velásquez’s unwillingness to address it is troubling. The truth matters for the family, for Guatemala and for the U.S. Write to O’Grady@wsj.com. A Candy From Mars and America’s Sweetness By Oanh Ngo Usadi I n the early 1980s, my family would gather at night around our battery-powered shortwave radio, listening to Voice of America. Back then I knew the broadcast only by its acronym, VOA, which I assumed was a Vietnamese word. Inside our thatched hut among rice paddies of the Mekong Delta, the radio delivered forbidden news of a world beyond Vietnam. I was 11, and America captured my imagination. My three siblings who escaped Vietnam a year earlier had just been accepted into the U.S. But more important in my young mind, America was the birthplace of M&Ms, a candy I had recently discovered. Seven years into communist rule, the Mekong Delta was running out of food. The area was often referred to as the rice bowl of Vietnam, but the Communist Party’s collectivization of farmland, along with successive typhoons and floods, had decimated the harvests. Vietnam’s occupation of Cambodia and short war with China in 1979 had further battered the economy. Harsh sanctions imposed by the West and indifference from Vietnam’s allies meant there was little outside aid. How M&Ms and VOA sustained my dreams as a girl in Vietnam. One day my father came home to our village from Ho Chi Minh City, formerly Saigon, with a gift that had reached us from my siblings in America. He handed my older brother and me a brown, waxy paper package that sounded as if it was filled with marbles. Though the bag was sealed, I detected the scent of chocolate, which I had once tasted before the communist takeover, when our family had not yet been exiled from Saigon and life’s small luxuries were within reach. I tore open the bag, took out one M&M, and gave another to my brother. Holding our candies between thumb and forefinger, we examined them from different angles. Then we looked at each other and, in unison, popped the chocolates into our mouths. As the hard shell dissolved into a sweet creaminess, my taste buds, long deprived of pure, clean sugar, burst to life. My brother, looking at me with an expression that must have mirrored my own excitement, suggested that we should eat only three each day, stretching out the stash as long as we could. Until the M&Ms ran out, eating them was a daily highlight. Sitting by the deck inside our hut with our feet dangling over a pond, we competed to see who could eat them slowest. At first we speculated what the small “m” imprinted on each candy might mean, but then we moved to debating the colors. My brother thought each had a different flavor, but I was sure they all tasted the same. Long after we had finished the M&Ms, I still thought about them at night as I drifted off to sleep, my hunger tamed by the fantasies. In 1983 the rest of my family escaped Vietnam during the mass exodus of “boat people.” A year later we joined my siblings in Texas. I soon learned that my two strongest associations with my new homeland both made their debut during World War II: M&Ms as a treat for American soldiers, and VOA as a way to broadcast America’s optimistic view of the world. Four decades after their inauguration, they provided comfort and inspiration to a young Vietnamese girl on the other side of the world, herself in need of a morale boost. Ms. Ngo Usadi is the author of the new memoir “Of Monkey Bridges and Banh Mi Sandwiches.” BOOKSHELF | By Gregg Easterbrook Big Data, Big Problems The Efficiency Paradox By Edward Tenner (Knopf, 282 pages, $27.95) ‘B ig Data” is the Big Bad of our moment. Companies and governments amass enormous troves of information about our online and offline activities, so they can understand them better than we do. Recently we learned that creepy firms like Cambridge Analytica mine Big Data from websites such as Facebook, using “psychographic microtargeting”—Orwell would have considered the term extreme—to alter public opinion, spread falsehoods and influence elections. Facebook itself seems increasingly creepy, grounded in lying to the public about what happens to the data it collects. In the future, will Big Data help physicians cure diseases or help health insurers deny claims? Make factories and products safer or accelerate layoffs? Ultimately spawn some kind of hostile artificial intelligence? Right now it’s fair to suppose that many people would favor putting the Big Data genie back into the bottle. Such questions set the stage for “The Efficiency Paradox,” a skillful and lucid book by Edward Tenner, a technology commentator best known for his 1996 volume “Why Things Bite Back.” Mr. Tenner’s specialty is the unintended consequences of scientific, engineering and electronic developments. Authors cannot control the current-events environment into which their works are launched, but the timing for “The Efficiency Paradox” seems propitious. The book arrives as the boomerang-and-backfire effects of Big Data are in the papers, or on your phone, as the case may be. “The Efficiency Paradox” begins with a history of the unexpected results—both good and bad—of advances in efficiency. One example is the early-19th-century Fourdrinier process for continuous-sheet production, which by manufacturing paper at an industrial scale led to something Henry Fourdrinier did not anticipate—a huge expansion of the importance of books, newspapers and educational materials. Mr. Tenner, a distinguished scholar at the Smithsonian Institution, writes in an erudite manner and cites dozens of studies, monographs and books, so many that at times the text veers toward the sort of survey of the literature that graduate students compose. There are bright spots, though. Learning via Mr. Tenner that there exists, in this era of flash drives and PDFs, a publication called Stationery News— devoted to fountain pens and letterhead—made my day. Since everyone understands that inventions and discoveries have unintended consequences, this aspect of “The Efficiency Paradox” can feel like the padding necessary to enlarge a magazine article into a book. But many findings in Mr. Tenner’s book put contemporary techanchored dilemmas into sharp focus. Though technology is making our lives ever more convenient, it also may be having the unintended effect of lowering our skill set. Mr. Tenner shows, for example, that letting students bring laptops into high school and college classes doesn’t just mean they will ignore the instructor to check ESPN and socialmedia platforms: The screens will impair even when used for proper educational purposes. Students who take handwritten notes—if in scrawl, versus perfectly clean Microsoft Office documents—learn better. “Only by restating ideas in new ways can we be sure that we have understood them,” Mr. Tenner writes. “Something about the inefficiency of handwriting constitutes ‘desirable difficulty.’ ” Word-processing files are efficient, scrawled notes inefficient. Yet inefficiency possesses virtues. The notion of “desirable difficulty” is the book’s central contention regarding the paradox of efficiency. Having devices perform chores for us is always easier, usually cheaper and sometimes more efficacious: But do we lose in the process? Perhaps London is better served by taxi drivers who must spend years in cumbersome, expensive study of “The Knowledge” (of the city’s complicated street system) than by Uber drivers using GPS devices that follow thoughtless satellite-guidance pulses. Efficiency can result in “skill erosion,” Mr. Tenner warns. Today pilots who spend relatively little time with yoke-andrudder steering may not be proficient when the flightmanagement computers suddenly disengage. Should autonomous cars become the norm, drivers may not know how to handle the sudden dashboard flashing light that commands them to take over. Similar skill erosion is occurring in many arenas and may leave society not only without mechanics who can repair internal combustion engines or school air conditioners but also without citizens who understand how these or other devices function. Perhaps ever-better engineering, science and industrial production will result in a world of Eloi—H.G. Wells’s men and women, 800,000 years in the future, who have a superfluity of material things yet don’t know how to make tea, let alone fix a motor. So far there’s little evidence of the downsides of a skilleroded society that concern Mr. Tenner. Few in the United States or European Union know how to forge metal or make glass, skills that were common a millennia ago. As long as industrial production can be relied upon, general ignorance of metal forging and glass blowing—or many types of manual and agricultural know-how—seems of little relevance. Rising efficiency in industry and commerce threatens not so much the loss of skills as an increase in inequality. Mr. Tenner notes that as corporations rose in productivity and consumer costs declined, “pay became far more unequal,” those at the top accelerating away from everyone else. Cheaper and better machines and electronic platforms are coming, “The Efficiency Paradox” supposes: Average people will benefit somewhat; the top will benefit tremendously. Does this mean rising efficiency should be banned? Mr. Tenner doesn’t wager an opinion. When completing this book, Mr. Tenner couldn’t have known about looming scandals involving abusers of internet-harvested information. But his concern with the downside of Big Data deftly anticipated the news. “The Efficiency Paradox” is an important note of caution regarding the velocity of progress. Mr. Easterbrook is a contributing editor of the Atlantic and the author of “It’s Better Than It Looks: Reasons for Optimism in an Age of Fear.” . THE WALL STREET JOURNAL. A18 | Monday, April 23, 2018 OPINION REVIEW & OUTLOOK T The Job Corps Failure he U.S. economy is desperately short of gest beneficiaries may be government contracskilled workers, and the federal govern- tors, not rookie job seekers. Job Corps spent ment claims it wants to help. Alas, a new more than $100 million between 2010 and 2011 report from the Labor Departon transition-service specialment’s inspector general Taxpayers spend billions ists to place students in a job shows that the $1.7 billion fedtraining. on a training program after eral Job Corps training proBut among 324 sampled that doesn’t deliver. gram is a flop. Job Corps alumni, the IG Launched in 1964, Job found evidence that contracCorps works with 16- to 24tors had helped a mere 18 find year-olds who grew up homeless or poor, work. The contractors often claimed credit for passed through foster care, or suffered other success even though they provided no referrals hardships. The goal is to equip these young or résumé and interview help. Overall, the IG adults with skills for careers in advanced manu- estimates that Job Corps paid contractors some facturing, the building trades, health care, in- $70.7 million for transition services they failed formation technology, business and more. to adequately perform. Nearly 50,000 people enrolled in 2017, and For a decade the IG has also raised alarms 87% lived in Job Corps dorms. In addition to about Job Corps’ dismal safety record. The training and housing, the Job Corps provides worst incident happened in 2015 at the nowmeals, medical care, books, clothing and supplies, shuttered Homestead Job Corps Center in Floras well as an allowance for child care and living ida. Five students allegedly murdered 17-yearexpenses. Such comprehensive support doesn’t old classmate Jose Amaya Guardado with a come cheap—the taxpayer cost per student last machete, hitting him “until the victim’s face year was $33,990—and the IG suggests that the caved in,” a detective recounted. investment often doesn’t pay off. Job Corps can’t be judged on one incident. Job Corps’ record-keeping is a hot mess, but But Deputy Inspector General Larry Turner told in 27 of 50 cases where full employment data Congress last summer that numerous Job Corps existed, graduates were working the same sort centers had “failed to report 40% of potentially of low-wage, low-skill jobs they held before serious criminal misconduct incidents” to the training. One participant completed 347 days of police. Some unreported incidents included Job Corps carpentry training but five years later “physical assault, weapons possession, narcotworked as a convenience-store clerk for $11,000 ics possession or sales, and other events that a year. Job Corps called this as a successful out- indicates a student was a danger to himself or come, so what do failures look like? others.” In 2011 the IG found the program matched The stronger economy means that busimore than 1,500 students with “jobs that re- nesses are clamoring for workers, and providquired little or no previous work-related skills, ing workers an opportunity to get the skills to knowledge, or experience, such as fast food match the openings is crucial. But too many cooks and dishwashers that potentially could government training programs show poor rehave been obtained without Job Corps train- sults, and those shouldn’t have a permanent ing.” The audit also found Job Corps had claim on taxpayer dollars. placed nearly one in five graduates in jobs that Congress and the Trump Administration “did not relate or poorly related to the stu- should take a hard look at the Job Corps and dents’ training.” see if it’s worth the money or merely tricking The new report suggests that Job Corps’ big- too many young people with false hope. T Killing an ObamaCare Alternative he Trump Administration has been ways that aren’t about health status. For inlooking for lifeboats for Americans stance: A large company with a packing facility trapped in ObamaCare exchanges, and in Nevada can price that group differently from one project is to expand “assoa call center on the East Coast. The draft Labor rule ciation health plans,” or AHPs, The plans won’t work without that let employers team up to rational pricing that reon association health this offer coverage. But the fine flects underlying reality. Yet plans needs a rewrite. the proposed Labor rule apprint in the proposed Labor Department rule is causing pears to preclude this. concern and needs to be The Affordable Care Act cleaned up. also barred this kind of pricing in the small The issue is whether the Trump rule will let business market but added a subsidy to make association health plans set prices based on up for the resulting disruption. The health risk, which is how insurance is supposed to benefits company TriNet said in comments to work. The point of the rule is to let businesses Labor: The rule “not only puts AHPs at a disenjoy the flexibility that large employers have advantage over large businesses as stated under a law known as Erisa. Under the Afford- earlier, but it also puts AHPs at a disadvanable Care Act bigger businesses have fared tage over the current ACA-mandated small much better than those stuck in the small group group market.” market, which is heavily regulated. The draft rule could also damage existing Labor proposed the rule earlier this year, and group plans. The Wisconsin Medical Society runs the problem comes in the finer points of its one such plan that covers small practice physi“nondiscrimination” details. Some commenters cians and their families, among others. The socisay the language would block plans from pricing ety wrote to Labor that the rule’s “nondiscrimibased on health status or past claims data. This nation provisions threaten the financial stability is not about turning down individual workers of existing AHPs and create structural issues that with cancer. No one is talking about firing the could lead to future insolvency.” guy with multiple sclerosis to save money, The point of the rule is to create a vibrant which is illegal. market, and the criticism hits the mark. Labor The question concerns groups of employees. is reviewing comments on the rule, and it The health-privacy (Hipaa) law and the Afford- needs to fix the nondiscrimination provisions. able Care Act let large employers “rate” groups President Trump has made association plans of employees based on, say, health question- a priority, and a bad outcome would make naires, provided these people are grouped in health markets worse. E Cuba Gets a Castro Convertible ighty-six-year-old Raúl Castro grabbed When Hugo Chávez took power in Venezuela a headlines last week when he ceded the few years later, the Castros got a new source of title of president to 58-year-old civilian financing. It was back to military fatigues. Miguel Diáz-Canel. Too bad Now Havana’s crime family A prize for the Ladies this change at the top is nomihas again run out of other nal when it comes to freedom peoples’ money. Its largest in White is bigger for the Cuban people. sources of hard currency are news than Diáz-Canel. the doctors and nurses who Mr. Diáz-Canel is wellknown for his rapid rise live in poverty while Cuba through the Communist Party “rents” them to countries to become the youngest member of the Polit- around the world. Yet even this multibillionburo in 2003. He didn’t do it as an independent dollar human trafficking isn’t enough to supthinker. Cubans have every reason to believe port the broken Cuban economy. him when he says, as he did in his acceptance President Trump has reined in some of Barack speech, that he is committed to preserving a Obama’s executive orders that made it easier for police state. If Mr. Diáz-Canel wants to keep his Americans to travel to Cuba. But the regime’s job and privileges, human rights won’t be on bigger problem is that investors who kick the his agenda. tires on the Castro jalopy increasingly walk away. Raúl still leads the Communist Party and There are plenty of opportunities in emerging has kept the two most powerful regime posi- markets these days, and the smart money tions under his control. Col. Alejandro Castro doesn’t want gangsters for partners. Espín, his son, runs counterintelligence for the Promises of greater economic freedom for Interior Ministry that controls the secret po- Cubans have never materialized. Small busilice. Gen. Luis Alberto Rodríguez López-Calle- nesses can operate as long as they are subsisjas, Raúl’s former son-in-law, is top dog at tence operations. But they can’t hire and the reGAESA, the military’s holding company that gime has again cracked down on permitting lest owns the tourism industry, the shipping com- it lose control. Cuba’s poverty suggests somepany, the airline, construction companies, auto thing has to change. But liberalization is not in imports and sales, the real-estate business, the the interests of the Castro family or the milibanks and control of container traffic at the tary. And they’re still in charge Port of Mariel. Ramiro Valdés, a regime enIn better Cuban news, the Cato Institute has forcer, still sits on the Council of State, Cuba’s warded its annual Milton Friedman Prize for highest government body. Advancing Liberty to Cuba’s Ladies in White. Last week’s public show of Mr. Diáz-Canel re- These are the women who gather each Sunday minds us when Fidel Castro showed up at The to attend Catholic Mass at churches around the Wall Street Journal in New York in 1995 wearing country and then march to bring attention to a suit and tie. Having lost Soviet backing, Fidel political prisoners. They deserve more media needed money and was trying to convince the recognition in the U.S. than does the phony world to invest on his island slave plantation. transfer of power to Mr. Diáz-Canel. LETTERS TO THE EDITOR China-U.S. Trade on a Tilted Playing Field Regarding Robert J. Barro’s “Trump and China Share a Bad Idea on Trade” (op-ed, April 11): Technology is the basis of wealth creation. I think technology transfer is the real issue with China. All of this is a big experiment. Never in the history of human civilization has one civilization purposely divested itself of its technology. The second half of my career was largely devoted to offshoring technology from U.S. suppliers to primarily Asian suppliers. This included giving them all drawings, specifications, tooling and production fixtures, test equipment, quality-control criteria and training. It is clear to me this is a failed experiment for the U.S., resulting in a transfer of wealth to those on the receiving end of our technology. Asian suppliers are smart and eager to acquire our technology and know how. They also aren’t very grateful. America was on top during the 1960s when the U.S. owned the technology, but now we’re at a big disadvantage for the next Cold War and for the future. LARRY LILE Boulder, Colo. In “Both Sides Would Lose a U.S.China Trade War” (op-ed, April 12), Jack Ma fails to realize is that the people in this country are more concerned about the outright theft of intellectual property, technologies that took decades and billions of dollars to develop. This egregious behavior is encouraged, condoned and bankrolled by the Chinese state. Mr. Ma’s own company, Alibaba, is a clone of Amazon, Baidu is a clone of Google and WeChat, Renren and Weibo are all Facebook wannabes. The Chinese government lures the best and the brightest of U.S. companies to set up R&D labs and hire Chinese workers to transfer our hardearned knowledge. Apple, Google, Cisco, Facebook, Lucent, Qualcomm and Boeing are examples. The Chinese regulatory agencies encourage the birth of companies like Huawei, ZTE and Xiaomi, which are now global companies, selling our stolen technology to our former customers. The Clinton administration fought for China’s admission to the WTO in 2001. In turn China has blatantly and repeatedly refused to comply with the WTO’s rules and 17 years later still claims it is a “developing nation” entitled to special waivers. It isn’t a level playing field and this administration is finally making the right decisions to fight for our rights. It’s only a matter of time before Germany, the U.K. and the EU join the fight. LINDA GALASSO Holmdel, N.J. China continues to undermine American innovation, technology and brands through its disregard for intellectual property (including counterfeit goods sold through Mr. Ma’s own company), its forced transfer of advanced technology as a condition for access to labor and markets and statesponsored cyberespionage. This isn’t a symbiotic relationship, but a three-pronged attack. JOHN ANDREWS Bethesda, Md. Mr. Ma notes the burgeoning middle class in China provides millions of consumers with products and services created as the result of “American ingenuity, innovation, technology and brand.” We also need to recognize that the Chinese middle class consists largely of urban workers whose jobs were and continue to be exported from the U.S. Trade tariffs are simply not efficient or effective in protecting the American workforce. The preservation of our middle class must come from significantly increasing our focus on the education and training of present and future American workers; otherwise, as China’s middle class continues to expand, it will be at the expense of substantial portions of the American middle class. RONALD L. LEIBOW La Jolla, Calif. We should enact a similar prohibition to the Foreign Corrupt Practices Act on the transfer of intellectual property. We’d want to coordinate with the EU, Japan, Canada, Australia, India and other allies so no country’s companies would be at a competitive disadvantage relative to others. A united front could put a halt to this blatant thievery. JONATHAN ROTHENBERG Scarsdale, N.Y. Peter Navarro’s “China’s Faux Comparative Advantage” (op-ed, April 16) is reminiscent of my experience with U.S. officials in the early ’80s who held that a U.S. military buildup was no use and that the Soviets would win the Cold War because they were a “command economy.” There is a flip side to viewing communist regimes as monolithic and inevitable. There are huge economic contractions inherent in these systems. The veneer of a market- and trade-based entity is thin, and the regime behaviors managing the economy are symptomatic. As with the Soviets, there will be a time when the music stops. ANTHONY ACOSTA Redondo Beach, Calif. In Praise of Curated News Printed on Paper Regarding Barton Swaim’s “In Praise of the News on Paper” (oped, April 16): Like Mr. Swaim, there are certain things that I miss—a handwritten note instead of an email, a call from an old friend instead of a text. But I cannot say that ink on wood pulp is one of them. The newspaper is costly to print, deliver and recycle, and very difficult to read in a crowded commuter railcar—not to mention the ink stains that seemed to find their way onto almost everything. My eyes aren’t what they used to be, and I routinely adjust font sizes on my iPad. I delight in the highdefinition photos that are embedded in many articles, the links that allow me to easily round out the reading experience and the ability to electronically “clip” certain articles and store them on my hard drive for future reference. As for remembering the pulp-andink version of the news more clearly than the digital version—I’m sorry, what was I saying? VIC BROWN Paoli, Pa. cycle Mr. Swaim describes. A hard paper is the distilling of that chaos in which the facts as they are, and sometimes informed opinions about those facts, can be digested in a sitting. I suspect consuming news this way also limits the propensity toward outrage and contention that following constantly “breaking news” online seems to engender. That is a thinking individual’s way to consume news, rather than a reactionary’s method. Whether “the news on paper” will persevere, depends entirely on whether we thinking individuals do so. VINCE SKOLNY Los Angeles In the 24-hour news cycle even the reputable online outlets have to constantly create new stories and headlines, which leads directly to the always reading, never-informed I’m a high-school student. Flipping through each page of the paper exposes me to articles on a variety of topics. In contrast, scrolling through digital news triggers an onslaught of algorithms catered to personal preferences. Follow the trails of “You may also like” and soon all the information on the webpage aligns with one’s individual views. A broad understanding of current affairs is best gained from reading the news in print and will help prevent the “echo chamber” and “confirmation bias” that afflict our society. MELISSA LEE Sugar Land, Texas Please, Spare Us Another Costly Success Like This One Pepper ... And Salt Regarding Karl Zinsmeister’s “15 Years Later, Iraq Is a Modest Success” (op-ed, April 9): There is no “global democratic revolution.” Those Beltway elites who believe in it have serious problems with reality. Caring for our maimed Iraq veterans will ultimately cost $1 trillion. God spare us another “success” like this. PETER NELSON Colbert, Wash. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to firstname.lastname@example.org. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. THE WALL STREET JOURNAL “No, it’s not a religion or a cult. It’s a fashion statement.” . THE WALL STREET JOURNAL. Monday, April 23, 2018 | A19 OPINION By Annafi Wahed I t was an unseasonably cold night, but I made the trek from Harlem to a meetup in Brooklyn. The organizers promised a night of big ideas and freethinking; the group thread included a quote from David Bohm about the virtue of free dialogue. But as with many such meetups in New York, I was quickly disappointed. Instead of open minds and lively debate, I found dogmatic progressive ideology and groupthink. One attendee told me that I, a former Hillary Clinton campaign staffer, am “no better than Roger Ailes” because my company aggregates both liberal and conservative commentaries and thereby is “pushing a right-wing agenda.” Someone else said: “Trump supporters are so stupid . . . they think the tax bill was a good deal because they got back—what, a few thousand a year?” I don’t claim to have the answers. I am, after all, a card-carrying member of the liberal elite. I went to high school on the Upper East Side, graduated from Bryn Mawr, and once made a six-figure salary at a Big Four accounting firm. Burying our heads in the sand and hoping everyone we disagree with goes away is not an effective solution. Still, I know that burying our heads in the sand and hoping everyone we disagree with goes away is not an effective solution. TheFlipSide.io has received lots of positive and constructive feedback from liberals and conservatives. But the most unconstructive criticism we’ve received comes from the left: • “We need to convince the Trump supporters they’ve been duped.” • “Trump supporters are not the norm; they are an aberration.” • “You’re a traitor to the cause.” • “Some ideas do not need to be engaged with, they need to be ridiculed.” I am a bleeding-heart liberal, a patriot and an optimist. I refuse to believe that 63 million of my fellow Americans were “duped,” that exposing people to different viewpoints is betraying “the cause,” or that liberals have all the answers. For all our smugness, we liberals have little to show. Republicans control the White House, Congress, and 32 state legislatures. Yes, polling data suggests we may be in for a “blue wave” this November, but we’ve gotten overconfident about polling numbers before. Let’s assume the pollsters are right this time, and Democrats win the majority in 2018. Then what? Follow Mr. Trump’s example and undo everything from the last two years? What happens the next time Republicans regain control? Unless we hatch a plan to stay in power forever, we’re going to need bipartisan support for our policies so they can survive the pendulum swings. How is that possible if the left refuses to engage with viewpoints from the right? When I launched TheFlipSide, I had no idea it would provoke such strong reactions. I never thought I’d have to explain to people why understanding the other side is vital for a functioning democracy, or that someday I would feel alienated in a roomful of fellow New York liberals. We were once the party of hope and change, the party of tolerance and inclusivity. From one liberal to another: Can we stop the ideological purity tests and admit that there are more ways than one of solving a problem? Can we please stop being such jerks? Ms. Wahed is founder of TheFlipSide.io, a daily digest of liberal and conservative commentary. How to Stop Putin’s Mafia By Mikhail Khodorkovsky A fter Donald Trump’s victory in 2016, I predicted that Russia’s stance toward the U.S. would become more antagonistic. Vladimir Putin always needs a foreign enemy to rally his nation around him and divert attention from the poor Russian economy. Mr. Putin’s aggression has indeed managed to raise tension between the U.S. and Russia. But instead of reinforcing Mr. Putin’s narrative by punishing Russia as a whole, the U.S. should target its response toward Mr. Putin and his inner circle. Mr. Putin’s conflicts with the U.S. are clearly intended to improve his reputation among the Russian people. Through his policy and rhetoric, Mr. Putin has spread the notion that the U.S. is a cunning enemy trying to undermine Russia and is responsible for Russia’s every problem at home and abroad. Kremlin propaganda makes clear that Russia’s fights in eastern Ukraine and in Syria are aimed specifically at opposing the U.S. Mr. Putin sees the rest of the West—with the exception of the United Kingdom—as nothing but feeble U.S. puppets. And even the U.K. is a weak but crafty opponent. But to sustain his illusion of strength at home, Mr. Putin must be seen scoring victories over the entire U.S. alliance. This is why he has targeted the internal cohesion of Western nations. The Kremlin has funded fringe movements in France and Germany, provoked conflict in Catalonia, attempted to influence elections in the U.S., and brutally punished Russian defectors in the U.K. and Austria. While the Kremlin sees its target in clear focus, the West has often failed to identify its enemy correctly. It is only in recent statements by British Prime Minister Theresa May and Foreign Secretary Boris Johnson, following the Kremlin’s poisoning of a Russian defector to the U.K., that a gradual awareness has begun to appear. The enemy is not Russia, a country of nearly 150 million people like you. It is not even the Russian Matthew J. Murray Executive Editor Karen Miller Pensiero Managing Editor Jason Anders, Chief News Editor; Thorold Barker, Europe; Elena Cherney, Coverage Planning; Andrew Dowell, Asia; Neal Lipschutz, Standards; Meg Marco, Digital Content Strategy; Alex Martin, Writing; Mike Miller, Features & Weekend; Shazna Nessa, Visuals; Rajiv Pant, Technology; Ann Podd, News Production; Matthew Rose, Enterprise; Michael Siconolfi, Investigations; Nikki Waller, Live Journalism; Stephen Wisnefski, Professional News; Carla Zanoni, Audience & Analytics Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES government as a whole, which is composed of nearly three million civil servants, most of whom receive a modest salary and work for the benefit of society as best they can. The West’s real enemy—and the enemy of the Russian people too—is a group of about 100 key beneficiaries of the Putin regime, and several thousand of their accomplices, many of whom hold posts in the Federal Security Service and the presidential administration. The real enemy is a group of about 100 beneficiaries of the regime and several thousand accomplices. Most of these people began their careers in the criminal underworld of St. Petersburg. Despite having now taken control of the presidency, the group retains every aspect of the criminal ilk from which they came. They are even conscious that they are a band of criminals whose goal is to steal money and avoid accountability by holding on to power. Their methods include buying people off, blackmail, murder and phony elections. But now they can operate worldwide, not merely in one city. Acknowledging the mafia origins of Vladimir Putin’s entourage will allow the U.S. and its allies better to understand and resist the group’s actions. Mr. Putin’s strategy is often incomprehensible from a normal political perspective, but the background of his circle indicates his aims and vulnerabilities. They are unconcerned about people—to them ordinary Russians are mere cattle and rabble. They are unconcerned about the country’s longterm future—for them Russia is something to be plundered and, at the same time, serves as a means of protection. Mr. Putin’s cronies don’t mind being known as ruthless and unconscionable brutes, so long as their critics pose no challenge to their interests. They don’t rely on the law, so only power matters to them; they want to be feared in the international arena. On the other hand, these people are very sensitive to exposure—to having their activities become public knowledge—because they are used to hiding from society. They also place a high value on money and luxury; losing wealth and comfort is painful to them. This is a mafia, after all. But it is a mafia with access to the finest lobbying firms, corrupt politicians, and lawyers (who have forgotten that they are also accountable to the law). They also boast the support of the politically obedient Russian mass media. The effective method of fighting mafia groups is already well established. It isn’t diplomacy, though negotiations are necessary. It isn’t broad economic sanctions, which hit ordinary people but are ineffective against the mafiosi. The best method of targeting Mr. Putin’s circle is to identify its individual members, along with their accomplices and the politicians they have paid off. Then, the U.S. and its allies could act to cut them off from the mechanisms of their influence loot—the people, money, and corporations they control in the West. The Magnitsky Act, passed by Congress in 2012 to punish murderous Russian officials, shook the sense of impunity among Mr. Putin’s allies. A recent Spanish probe uncovered one of their criminal groups—with connections to the very top. Resisting Mr. Putin’s regime will require this type of action. Identifying the group’s members, cutting them off from their overseas resources, and making their crimes public—that is the recipe for success in the confrontation with one of the most dangerous mafia gangs of the century. Mr. Khodorkovsky is founder of Open Russia. Unappointed ‘Judges’ Shouldn’t Be Trying Cases By David B. Rivkin Jr. And Andrew M. Grossman P resident Trump promised to nominate judges in the mold of Antonin Scalia, and that thought was no doubt foremost in his mind when he chose Neil Gorsuch to fill Scalia’s vacant seat. On Monday Justice Gorsuch and his colleagues will consider whether the hiring of adjudicators deciding cases within federal agencies will also be subject to the kind of accountability that making an appointment entails. So-called administrative law judges are not “principal officers,” so they are not subject to Senate confirmation under the Constitution’s Appointments Clause. The question in Lucia v. Securities and Exchange Commission is whether they are “inferior officers.” In that case, the clause requires them to be appointed by principal officers, such as commissioners acting collectively or a cabinet secretary, themselves appointed by the president. The alternative is that they are mere employees, who can be hired by lowerlevel managers with no presidential responsibility. The dividing line, the Supreme Court has explained, is whether the position entails the exercise of “significant authority.” There shouldn’t be much doubt on which side of that line the SEC’s judges fall. In this case, the commission’s Enforcement Division decided to bring fraud charges against investment adviser Raymond Lucia in its own administrative court instead of a judicial court. The SEC alleged that Mr. Lucia misled participants in his “Buckets of Money” seminars when he used slides showing hypothetical PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp Gerard Baker Editor in Chief DAVID GOTHARD A Warning To My Fellow Liberals William Lewis Chief Executive Officer and Publisher DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Chief Innovation Officer; Anna Sedgley, Chief Operating Officer OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Kenneth Breen, Commercial; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Chief Commercial Officer; Nancy McNeill, Advertising & Corporate Sales; Christina Van Tassell, Chief Financial Officer; Suzi Watford, Chief Marketing Officer; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head returns based in part, rather than in whole, on historical data (as the slides themselves disclosed). The SEC assigned the case to an administrative law judge, Cameron Elliot. According to the record, Mr. Elliot sided with the SEC’s Enforcement Division in every one of his first 50 cases. Who hired Mr. Elliot? The SEC initially stated that he was selected by its chief administrative law judge from a list of qualified candidates provided by the Office of Personnel Management. But Mr. Elliot himself said he transferred from the Social Security Administration and that someone in the SEC’s human-resources department presumably “signed off” on his hiring. It is clear that he wasn’t appointed according to the Appointments Clause—that is, neither the president nor the commission appointed him. Nonetheless, Mr. Elliot presided over a full-blown trial. The parties examined and cross-examined witnesses, introduced evidence, and made objections, upon which Mr. Elliot ruled. SEC judges oversee discovery, decide motions, impose sanctions for misconduct, decide what evidence will be allowed in the official record, and make determinations of fact and law. They ultimately issue an “initial decision” that stands unless the commission intercedes. These decisions can carry serious penalties, ranging from fines to banishment from the securities industry. Those were, in fact, among the penalties that Mr. Elliot—“Judge Elliot” to those who appear before him—imposed on Mr. Lucia. Relying on the factual record set by Mr. Elliot and his findings, the commission upheld his decision and the penalties. In 1991, the Supreme Court held that “special trial judges” who proposed opinions for judges on the U.S. Tax Court were inferior officers—not mere employees—because they took testimony, conducted trials and ruled on evidence, exercising significant The SEC’s tribunals run afoul of the Constitution. The Supreme Court has a chance to remedy that. discretion in all those tasks. Under that logic, SEC judges assuredly qualify as officers. They do all those things and also issue decisions that take on legal force unless the commission takes action. Even the federal government agrees with that position, though it argued the opposite in the lower courts. The only factor that may give the justices pause is that there are so many administrative law judges across the federal government. To pre-empt that concern, Mr. Lucia’s lawyers have suggested the court could distinguish between the relatively few ALJs who conduct adversarial proceedings like the SEC’s and the many more who consider appeals of benefit denials. But there is only one statute that creates the office of “administrative law judge” across all agencies, so there’s no legal basis to declare some of them officers and others employees. Additionally, the law allows any ALJ to be detailed to any other agency, so that every ALJ may end up presiding over adversarial hearings. There’s no reason to fear disruption if the justices rule in Mr. Lucia’s favor. Every agency employing ALJs already has the legal authority to leave their appointment to the top officer, as the Constitution requires. And in only a handful of pending cases has the appointments issue been raised. If necessary, the high court could clarify that its decision applies only prospectively—just as it did when it held that bankruptcy courts lacked authority to decide certain kinds of claims. What it should not do is permit agencies to shirk what Justice James Wilson identified as the principle underlying the Appointments Clause: “The person who nominates or makes appointments to offices, should be known. His own office, his own character, his own fortune should be responsible.” Messrs. Rivkin and Grossman practice appellate and constitutional law in Washington. Mr. Rivkin served at the Justice Department and the White House Counsel’s Office. Mr. Grossman is an adjunct scholar at the Cato Institute. Jordan Peterson’s Economics Lessons By Quinn Connelly J ordan Peterson’s “12 Rules for Life: An Antidote to Chaos” has become a cultural phenomenon. But one aspect of his work is underappreciated—economics. Most of us hate making difficult decisions, but as Mr. Peterson sternly reminds us, life is full of tough trade-offs. Everyone has options, and making the most of those options is the essence of economics. Mr. Peterson shows how the right set of rules can guide our thinking, clarify our values and encourage us to take prudent action. Here are five of his economics lessons: • Signaling. Mr. Peterson’s Rule No. 1 is “Stand up straight with your shoulders back.” That illustrates the economic concept of “signaling,” which stresses the importance of credibly conveying information—in this case, confidence and competence—to others. • Moral hazard. Rule No. 2 is “Treat yourself like someone you are responsible for helping.” Moral hazard occurs when people behave irresponsibly because they don’t bear the consequences of their actions. Mr. Peterson notes we often take better care of others than of ourselves because we feel responsible for them. • Asymmetric information. Rule No. 9 is “Assume that the person you are listening to might know something you don’t.” Asymmetric information refers to a knowledge imbalance between two parties. Almost all economic transactions involve asymmetric information, because buyers and sellers often differ dramatically in terms of expertise. This principle applies to all kinds of professionals as well, including lawyers, physicians and engineers, who know much more than their clients, patients and customers. • Short-termism. John Maynard Keynes was correct when he observed that “in the long run we are all dead.” But as Mr. Peterson notes, this sort of shortsighted thinking can be used to justify absolutely anything and therefore “breeds nothing good.” • Future Value. Mr. Peterson instructs readers in Rule No. 7: “Pursue what is meaningful, not what is expedient.” He defines expedience as “the following of blind impulse.” Pursuing what is “meaningful” in this sense requires time and patience. While he doesn’t mention it explicitly, Mr. Peterson hints at a powerful economic concept: compound interest. You can let go of something valuable in the present for a greater reward in the future. As Mr. Peterson puts it: “It’s the discovery of the future itself. It’s the most profound discovery of humankind.” Mr. Connelly is a 2018 M.B.A. candidate at Vanderbilt University. . THE WALL STREET JOURNAL. A20 | Monday, April 23, 2018 IBM Watson. Artiˇcial intelligence with real business beneˇts. 20 1,400+ different industries. Youíll ˇnd Watson in banking, energy, healthcare, aerospace and more. artiˇcial intelligence patents awarded to Watson in 2017. 16,000 Hereís why Watson is AI for smarter business: Working with enterprisestrength AI can provide your business with real beneˇts. With Watsonís deep learning capabilities, businesses can ˇnd insights faster, enrich customer interactions, make more-informed decisions and improve results. active Watson engagements. Watson learns more from less data. Watsonís algorithms are specially tuned so businesses can rapidly achieve accurate results from smaller, private data sets. Watson reimagines your workflows. Because Watson can be embedded within the many platforms and applications you already use, you can improve most aspects of how your business works. Watson protects your insights. You need to own all your data, your algorithms and your IPówith Watson you can. So the insights gained from your speciˇc data stay yours. Visit ibm.com/watson IBM and its logo, ibm.com,Watson and Letís put smart to work are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. ©International Business Machines Corp. 2018. . TECHNOLOGY: ANDROID PHONE IS CASUALTY OF U.S.-CHINA TRADE CLASH B4 BUSINESS & FINANCE Last Week: S&P 2670.14 À 0.52% S&P FIN À 1.60% Monday, April 23, 2018 | B1 THE WALL STREET JOURNAL. © 2018 Dow Jones & Company. All Rights Reserved. S&P IT g 0.21% DJ TRANS À 2.02% WSJ $ IDX À 0.67% LIBOR 3M 2.359 NIKKEI 22162.24 À 1.76% Distrust Clouds Stock Fear Gauge Unusual movement in the VIX arouses worry over the soundness of the trading linked to it BY GUNJAN BANERJI Investors are starting to wonder if Wall Street’s fear gauge is broken. The Cboe Volatility Index tracks how much investors pay for options they often use as Amazon PayShows Warehouse Workforce insurance against future stockmarket declines. Known as the VIX, it typically rises as stocks fall or vice versa, reflecting shifting demand for options used to hedge investments. Playing the VIX has become a cottage industry in recent years, with billions of dollars flowing into investment products aimed at hedging or exploiting volatility trends. This past Wednesday morning, futures contracts that track the VIX spiked despite little movement in U.S. stock futures. The 12% rise within 30 minutes set off alarm bells on trading floors—it was the biggest such move going back to 2010, according to data from Macro Risk Advisors, a derivatives brokerage. Wednesday’s trading, which many traders said was triggered by large orders for S&P 500 put options expiring in one month, is now adding to concerns about the soundness of the entire ecosystem of VIX- linked trading. “The VIX has grown enormously and my sense is that it’s been showing some growing pains lately,” said Sandy Rattray, who helped make the VIX tradable through the creation of futures contracts on it while at Goldman Sachs Group Inc. in 2004. Exchange-traded products tied to the VIX came to the forefront of investor attention during a market rout in February. The episode raised ques- U.S. Oil Prices Take Aim at $70, but Impact on Growth Is Worry Weekly U.S. crude-oil production 10 million barrel a day U.S. crude-oil price, per barrel (Leading contract) 8 Friday $68.38 6 4 When Amazon.com Inc. disclosed its workers’ median annual salary of $28,446 last week, the predominantly bluecollar nature of its workforce became clear. 60 50 0 2014 ’15 ’16 ’17 ’18 Weekly U.S. retail gasoline price $4.00 a gallon 3.50 30 3.00 2.50 2.00 2015 ’16 ’17 ’18 Source: WSJ Market Data Group (U.S. crude); Energy Information Administration (exports, production, gas price) SPENCER PLATT/GETTY IMAGES Google’s Practices Threaten Privacy, Too The company keeps track of users’ browsing and search history. and the time people spend on its sites and apps. New regulations, particularly in Europe, are driving Google and others to dis- close more and seek more permissions from users. And given the choice, many people might even be fine with the trade-off of personal data for services. Still, to date few of us realize the extent to which our data is being collected and used. “There is a systemic problem and it’s not limited to Facebook,” says Arvind Narayanan, a computer scientist and assistant professor at Princeton University. The larger problem, he argues, is that the very business model of these companies is geared to privacy violation. We need to understand Google’s role in this. Google allows everyone, whether they have a Google account or not, to opt out of its ad targeting. Yet, like Facebook, it continues to Please see MIMS page B4 Annual VIX futures volume has boomed since the ﬁnancial crisis. 80 million contracts 60 40 20 0 2004 ’10 ’18* *Through April 18 Source: Cboe Global Markets THE WALL STREET JOURNAL. Regulator Deadline Has Wells Scurrying Wells Fargo & Co. is facing more challenges with one of its regulators. The bank late last week agreed to a $1 billion settlement with the Office of the Comptroller of the Currency and Consumer Financial Protection Bureau related to its risk management in consumerlending businesses. Meanwhile, it is planning to ask the OCC for an extension of a deadline to satisfy an enforcement action related to antimoney-laundering controls, according to people familiar with the matter. Wells Fargo’s wholesale business, which works with 1.50 2014 ’15 ’16 ’17 ’18 THE WALL STREET JOURNAL. GREASED LIGHTNING: Higher energy prices push inflation higher and increase pressure on the Fed to raise interest rates. B9 KEYWORDS | By Christopher Mims Recent controversy over Facebook’s hunger for personal data has surfaced the notion that the online advertising industry could be hazardous to our privacy and well-being. As justifiable as the focus on Facebook has been, though, it isn’t the full picture. If the concern is that companies might be collecting some personal data without our knowledge or explicit consent, Alphabet’s Google is a far bigger threat by many measures: the volume of information it gathers, the reach of its tracking Weekly U.S. crude-oil exports 2 million barrels a day 40 Trading Surge BY EMILY GLAZER 2 0 By Georgia Wells, Rachel Feintzeig and Theo Francis The figure puts Amazon on par with chocolate manufacturer Hershey Co., slightly above retailer Home Depot Inc.—and miles below the $240,430 median annual compensation at Facebook Inc., according to the companies’ latest proxy statements. Amazon is compared with Silicon Valley tech giants like Facebook, Apple Inc. and Alphabet Inc.’s Google, but a vast logistical apparatus separates it from its tech peers. Most of the roughly halfmillion employees at Amazon don’t make six figures while Please see PAY page B2 tions about whether the world of volatility trading is morphing and if some products aren’t doing what they advertise to do—measure market anxiety. VIX futures are dependent on what some say is an outdated auction that is subject to problems such as thin trading and potentially manipulation. Chris Concannon, Cboe’s president and chief operating officer, acknowledged that rePlease see FEAR page B2 See more at WSJMarkets.com INSIDE FORD EXPECTED TO DETAIL COST CUTS THE WEEK AHEAD, B2 KOREAN AIR’S HEIRS RESIGN AFTER INCIDENT AIRLINES, B3 Wells Fargo plans to ask the OCC for more time to satisfy an enforcement action. larger corporate customers, has been having problems for months satisfying a November 2015 consent order from the OCC. The issues relate to processes involving new and existing corporate customers, such as how the bank ensures there are proper identification documents and that it has the ability to see client activities across a common database, the people familiar with the matter said. If Wells Fargo misses a June 30 deadline from the OCC to satisfy that order’s requirements, it could result in another enforcement action against the bank, these people said. The bank in recent months has been discussing Please see WELLS page B6 Heard: Fed tests weigh on bank stocks.............................. B10 . B2 | Monday, April 23, 2018 * *** INDEX TO BUSINESSES THE WALL STREET JOURNAL. BUSINESS & FINANCE These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. Baidu ........................... B4 Bank of America.........B9 Bayerische Motoren Werke........................B2 Brigham Health .......... B3 Byton...........................B2 H Hanjin Group...............B3 HCA Healthcare..........B3 Hershey.......................B1 HNA Group..................B6 Home Depot................B1 Honeywell International .....................................B4 Huawei Technologies..B4 Rio Tinto ..................... B9 S Samsung Electronics..B4 Schwab Short-Term U.S. Treasury ETF ............ R3 SF Motors...................B2 Shea Homes................R5 Spotify Technology.....A1 Starbucks....................B3 Steward Health Care System......................B3 C I T Incyte...........................B2 China Merchants Bank ...................................B10 Citigroup................B6,B9 Cleveland Clinic...........B3 Tencent Holdings .. A1,B4 Tesla............................B2 JPMorgan Chase..B9,B10 D Korean Air Lines.........B3 J U Dealogic.......................B3 Deutsche Bank............B6 Lucid Motors...............B2 Uber Technologies ...... B2 United Co. Rusal.........B9 United Parcel Service .....................................B2 U.S. Bancorp ............... B6 E M V EVelozcity ................... B2 Massachusetts General Hospital.....................B3 Morgan Stanley..........B9 Vanguard Short-Term Treasury ETF ............ R3 Vneshekonombank......B9 F Facebook......................B1 Faraday Future............B2 Ford Motor..................B2 Fresenius.....................B4 G General Motors...........B2 Glencore ...................... B9 K L N W Northwest Rafting.....R4 Walmart......................B2 Wanxiang Group.........B2 Wells Fargo............B1,B6 P-R ProMedica ................... B3 Reckitt Benckiser Group .....................................B4 Z ZTE..............................B4 INDEX TO PEOPLE A Goldberg, Jason..........B6 Agronin, Marc.............R5 H B Halff, Antoine.............B9 Hartzog, Woodrow ..... B4 Barnash, Jim...............R3 Baur, Axel ................... B3 Bezos, Jeff..................B2 Bodner, Mark .............. B9 Breitfeld, Carsten.......B2 J Johnson, Brian............B2 Johnson, Kevin............B3 Narayanan, Arvind......B1 Neumann, Karl-Thomas .....................................B2 O Olson, Michael............B2 Oostra, Randy.............B3 P K Powell, Spuds.............R3 E Keady, Dan..................R3 Kim Jong Un ....... A1,A10 Kim, Richard ............... B2 Kirchert, Daniel...........B2 Kuroda, Haruhiko........A2 Schuurmans, Nikolaas .....................................R3 Shah, Neil....................B4 Small, Gary.................R5 Emerson, Joelle..........B3 L C Cho Hyun-ah...............B3 Cho Hyun-min.............B3 Cho Yang-ho................B3 F Finn, Jim ..................... B2 Fu, Xiao.......................B9 Lache, Rod...................B2 Lee Jae-yong...............B3 Lucey, Joe ................... R3 S T Tchilinguirian, Harry...B9 V Vorgan, Gigi................R5 G M-N W Gobuty, Marshall........R5 McQueen, Jeff ............ R5 Wilson, Don ................ B2 PAY Continued from the prior page spending their workdays writing code. They unload trucks, drive forklifts and walk miles collecting products to fill orders—all for around the same pay as workers in other companies’ warehouses. One researcher likened Amazon to the child produced by a three-way merger between Google, United Parcel Service Inc. and Walmart Inc. “At Amazon, you’ve got this whole group of foot soldiers out there that are working on fulfillment centers that aren’t part of the picture for the other names in internet land,” said Michael Olson, senior research analyst at Piper Jaffray. “It 28,446 Median annual salary, in dollars, of Amazon.com employees shows how Amazon is different from the other tech stocks.” More than 330 large public companies have disclosed median annual pay figures for the first time this year, a requirement of the postfinancial-crisis Dodd-Frank law. Median salaries reported so far range from $253,015 at biotech firm Incyte Corp. to less than $10,000 at retailers with big part-time workforces and some manufacturers with high numbers of employees in lowwage countries. In the S&P 500, Amazon isn’t classified as a tech stock, but rather as a part of the retail industry. At the same time, Amazon is valued at 184 times its estimated earnings for this year, according to analysts surveyed by FactSet—a far higher valuation than even Facebook and Alphabet. Amazon started as a retailer, but it always had tech- nology at its core. When Chief Executive Jeff Bezos founded Amazon in 1994, it was a bookseller, but it took advantage of the nascent internet to connect faraway customers. Today, Amazon uses software to run everything it does, whether that is shuttling packages around the world, streaming movies on the web, storing companies’ digital files on its servers or recommending products to customers. It has spent years honing its machine-learning and artificial-intelligence technology to the point that it can forecast demand, identify fraud and recommend products to customers. But with more than 175 operating and fulfillment centers, where workers pick, pack and ship orders, and more than 35 sorting centers globally, most members of Amazon’s workforce are a contrast to the 45,000-plus largely white-collar workers at its Seattle campus offices and elsewhere. The median salary data was disclosed under new rules mandating the information for public companies. Companies have some leeway in how they report the figure, which is intended to identify the worker who is paid at the midpoint for all employees. Median pay of $28,446 works out to about $13.68 an hour—around what the typical U.S. front-line warehouse worker makes, experts say. The median pay includes Amazon’s workers from more than 50 countries and spans the entire Amazon workforce, including full- and part-time workers in every area of the company. “These roles range from associates working in our fulfillment centers to customer-service representatives to software engineers and product managers,” an Amazon spokeswoman said. Amazon pays its full-time fulfillmentcenter workers in the U.S. an average hourly wage of more than $15, including cash, stock and incentive bonuses, the spokeswoman said. Deviating Prices There have been large differences between VIX futures prices at 9 a.m. and the ﬁnal price at 9:30—after a monthly auction. Difference between futures prices at 9 a.m. and 9:30 10% 5 0 –5 –10 –15 2015 Source: Macro Risk Advisors ’16 ’17 ’18 THE WALL STREET JOURNAL. Ford Takes Steps to Rein In Costs BY CHRISTINA ROGERS Ford Motor Co. Chief Executive Jim Hackett spent his first year in the job hammering away on the need to cut costs, aiming to slash $14 billion by 2020 and prodding its 200,000 employees to get more fiTHE WEEK nancially “fit.” AHEAD When Mr. Hackett took the post in May, he sought to jump-start Ford’s response to a rapidly changing business in which auto makers are increasingly focusing on electric cars and autonomous vehicles. To find the money to finance such projects, the new CEO had to look for savings. Analysts are expecting to see more details on cost cuts when the No. 2 U.S. auto maker reports quarterly results Wednesday after the closing bell. Mr. Hackett is running a company with an operating margin below that of both General Motors Co. and the smaller Fiat Chrysler Automobiles NV in the fourth quarter. Ford’s annual 5% operating margin trails GM’s 9%, and is lower than its internal longterm target of 8%. First-quarter earnings highlight a shift in the Motor City. Ford emerged from the financial crisis as the healthiest U.S. auto maker and held that crown for several years. Today, however, Ford’s market value of $43.2 billion is closer to Fiat Chrysler’s valuation than GM’s, a trend that has sharply accelerated since Mr. Hackett took the helm. Mr. Hackett needs to address Ford’s spending habits. In the critical area of engineering, research and development, Spending Habits R&D spending at Ford has outpaced GM, and its overall head count increased in 2017. Engineering, research & development spending Ford $8.0B $8 billion 6 ANDREW HARRER/BLOOMBERG NEWS B Goldman Sachs Group ............................. B9,B10 GM $7.3B 4 2012 ’13 ’14 ’15 ’16 Ford employee count In thousands ’17 202,000 CEO Jim Hackett aims to focus on more profitable vehicles. 200 150 100 50 0 2012 ’13 ’14 ’15 ’16 ’17 Source: the companies THE WALL STREET JOURNAL. Ford’s $8 billion budget last year outpaced GM’s by nearly 10%, even though GM sells far more cars globally and has more advanced electric cars. In addition, Ford also dished out more to cover warranties and materials. And Ford’s overall head count increased in 2017. “They are burning a lot of cash in a lot of places,” said Rod Lache, an auto analyst with Deutsche Bank Securities. Ford’s automotive operating cash flow slipped 40% last year, and the company’s annual profits are projected by Wall Street analysts to drop 12% in 2018, even though first-quarter earn- ings are expected to increase. Mr. Lache, who expects Mr. Hackett to elaborate on his restructuring plan during the earnings call this week, said GM and Fiat Chrysler have been far more decisive in exiting moneylosing parts of the business, such as unprofitable car lines or geographic markets that return little or no profit. “Ford really never went through this,” Mr. Lache said. “That’s ultimately come home to roost.” Sinking more money into engineering cars with pricier materials, engines and features has helped Ford better meet fuel-economy targets and boost transaction prices of profitable trucks. But the Lincoln lineup and certain passenger-car lines can require steep discounts that erode or erase margins. Mr. Lache estimates 60% of the volume delivered in the U.S. was sold at a price below the industry average. “The entire company is intensely focused on improving the operational fitness of the business to deliver profitable growth with improved returns, while building toward our vision of the future,” Ford said. Mr. Hackett plans to shift about $7 billion in spending away from small cars and sedans and move it toward development of more profitable trucks and sport-utility vehicles. He also is increasing investment in electric, autonomous and internet-connected cars. If he succeeds, Mr. Hackett could polish Ford’s image and brighten the investment case. The road ahead, however, will be bumpy. Ford’s own outlook for 2018 calls for a third consecutive year of earnings decline. Operations in South America and India are losing money, and sales in China slid 19% in the first quarter, a decline that could further pressure earnings. “There won’t be much to get excited about with the Ford story until 2019, or perhaps 2020,” Brian Johnson, a Barclays analyst, wrote in a recent research note. Electric-Car Startups Lure Big Talent BY MIKE COLIAS Deep-pocketed investors looking to create the next Tesla are turning to seasoned automotive executives for help making sense of the complicated and capital-intensive car business. A little-known Los Angeles electric-vehicle startup, EVelozcity, is the latest firm to lure big-name talent. The company, attracting commitments for $1 billion in funding since December, has hired Karl-Thomas Neumann, the former head of General Motors Co.’s European division, along with several former BMW AG executives. Like many of the EV startups cropping up in California in recent years, EVelozcity has Chinese backers to thank for its large war chest. While investors from China have helped along several batterypowered vehicle companies— including Wanxiang Group’s rescue of the high-publicity Fisker project—other ventures have struggled to get off the ground because of lofty goals or insufficient capital. EVelozcity declined to disclose its investors, saying they are from Germany and Taiwan besides China. Mr. Neumann, 57 years old, said in an interview he believes conventional auto makers aren’t entirely committed to a wholesale transition for the industry because battery power will siphon sales from the high-margin fossil-fuel-powered cars they have sold for over a century. “It’s very hard to disrupt yourselves,” he said. Mr. Neumann’s former employer, GM, and other auto makers say they are committed to electrics, with more than $70 billion pledged toward development of new electric models industrywide since early 2017. GM, Peugeot and most other multinational car com- FEAR Continued from the prior page cent claims of alleged manipulation have been affecting the monthly auctions. Technology improvements will help, he said in an interview. The accusations of manipulation have affected the willingness of trading firms to participate during the auction, he said. Cboe is “highly focused” on the process, he said. Traders trying to unravel Wednesday’s mysterious trading pointed to massive options orders that took place during a ANDREJ SOKOLOW/DPA/ZUMA PRESS A Akorn...........................B4 Alphabet...........B1,B2,B4 Amazon.com ............... B1 Apple......................B1,B4 A Faraday Future production model. The firm recently obtained a $1.5 billion investor commitment. panies have projects under way aimed at developing EVs, driverless cars and sharedtransportation programs designed to challenge Tesla Inc., Alphabet Inc.’s Waymo and Uber Technologies Inc. Newcomer companies that lure veterans in attempts to replicate Tesla Chief Executive Elon Musk’s success face a long list of challenges. Mr. Musk has struggled to launch vehicles on time, meet price targets and maintain quality levels. Faraday Future, started four years ago by Chinese billionaire Jia Yueting, attracted veterans including product chief Peter Savagian, who spent nearly 20 years at GM, mainly working on electrics and hybrid vehicles. Dag Reckhorn, with a background at automotive suppliers, oversees manufacturing. Faraday Future recently obtained a $1.5 billion investor commitment and aims to produce a car by year-end, a spokesman said. EVelozcity wants to make more affordable electrics that will be used for ride-sharing, commuting and commercial delivery in big cities. Stefan Krause, a former chief financial officer at Deutsche Bank and BMW, recruited Mr. Neumann to EVelozcity. The firm also includes engineer Ulrich Kranz and designer Richard Kim, who helped develop BMW’s i3 and i8. Mr. Krause joined Faraday last year to help it raise capital but left in October after six months. He has since been sued by Faraday, which alleges he left with trade secrets. Mr. Krause and a Faraday spokesman declined to comment. Another company looking to edge in on Tesla is Byton, also backed by Chinese investors. Its chief executive, Carsten Breitfeld, spent 20 years as a BMW engineer and executive, and its president, Daniel Kirchert, ran the premium Infiniti brand in China. Lucid Motors Inc., an electric-car company based in Silicon Valley, in 2015 hired Derek Jenkins, who was Mazda’s head designer. China-backed EV startup SF Motors Inc., which bought a plant in Indiana last year, hired former Volkswagen executive Jim Finn to oversee production. monthly auction just before market open. About $2 million in options bets triggered the extreme move, according to Macro Risk Advisors. There is a long history of alleged manipulations in futures markets, though it is difficult to prove, lawyers and academics have said. Still, it is unclear if there is any nefarious trading activity going on. Some, including Mr. Rattray, say even hedging activity could move the gauge. Traders also often arbitrage brief price discrepancies between VIX futures and S&P 500 options. But at least nine lawsuits alleging VIX manipulation have been filed since February. The Financial Industry Regulatory Authority is looking into claims that the contracts have been tampered with. Cboe Global Markets, which oversees the VIX, works with Finra, Wall Street’s self-regulatory watchdog, to surveil its markets. The current auction system that Cboe runs has “significant flaws,” Don Wilson, founder of DRW Holdings LLC, told The Wall Street Journal. DRW is a large Chicago trading firm involved heavily in the futures market. “A widespread lack of un- derstanding about how the settlement auctions work and the recent allegations of impropriety, you have a perfect storm,” he said. He proposes a system in which investors receive a set of S&P 500 options when a VIX future expires, making it more of a “physically settled” futures market instead of “cash settled.” Mr. Wilson is fighting a case in which DRW is accused of manipulating interest-rate contracts in 2011. He and DRW deny the allegations. DRW is also named in one of the lawsuits, which the firm called “without merit.” Former GM executive Karl-Thomas Neumann has joined electricvehicle startup EVelozcity. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | B3 * * * * BUSINESS NEWS BY EUN-YOUNG JEONG KANG JIN-HYUNG/NEWSIS/ASSOCIATED PRESS SEOUL—The head of Korean Air Lines Co. said Sunday that his two daughters had resigned from their positions at the company after an uproar over allegations that they had abused their subordinates. The move by Cho Yang-ho, chairman of Hanjin Group and of Korean Air, is an example of one of South Korea’s sprawling family-run conglomerates responding to growing public anger. On Sunday Mr. Cho, the father of Cho Hyun-min, known as Emily, issued an apology for his daughter’s “immature conduct.” Cho Hyun-min was an executive at South Korea’s flagship carrier. Another daughter and former executive, Cho Hyun-ah, known as Heather, also stepped down. They have resigned from all posts at the Hanjin conglomerate, effective immediately, Mr. Cho said. Hanjin Group is one of the country’s biggest conglomerates and controls Korean Air. Mr. Cho’s apology comes days after Emily Cho, a vice president at Korean Air, was accused of throwing water in the face of an advertisingagency employee during a meeting, sparking a furor. South Korean police have launched a formal investigation into the matter. Allegations against the family have since snowballed. On Saturday, the Korea Customs Service raided Korean Air headquarters and Mr. Cho’s family residence, seeking evidence that the Cho family used their fleet of planes to bring luxury goods into South Korea without paying taxes. As part of his apology Sunday, Mr. Cho said Korean Air would create a new vice chairman position to be filled by a nonfamily member and would strengthen the board’s role in company operations. South Korea’s family-run conglomerates, known as chaebols, have faced increasing public scrutiny amid concerns about poor corporate governance and allegations of bad behavior by the third-generation heirs, many of whom have assumed senior roles at the companies. The country’s largest conglomerate, Samsung, has responded to public anger by increasing its dividends and streamlining its ownership structure. Third-generation heir Lee Jae-yong was convicted of bribery last year, though he was freed from prison upon appeal. The case is expected to reach South Korea’s highest court. In the case of Korean Air, Emily Cho, 34 years old, started at her father’s company in 2007 and rose to become vice president at Korean Air within a decade. She held six other positions at the airline’s affiliate companies. Her older sister, Heather Cho, earned international notoriety in 2014 after she ordered a commercial flight with about 250 passengers to return to the gate at New York’s John F. Kennedy International Airport after berating a flight attendant for serving her macadamia nuts in an unopened bag, instead of on a plate. The incident became known as “nut rage.” The elder Ms. Cho was convicted in a South Korean court and sentenced to one year in jail for violating aviation laws. Ten months later, an appeals court acquitted her of one of the charges and released her on a suspended sentence. She returned to work as president of the airline’s hotel-operations affiliate last month. The Hanjin Group chairman also has one son, Cho Wontae, who was reported to have assaulted an elderly woman in 2005 after she chastised him for his driving. After an investigation, he was not charged. He was promoted to president at Korean Air last year. Cho Hyun-min and her sister were accused of abusing subordinates. BRENDAN MCDERMID/REUTERS Head of Korean Air Says Daughters Quit Posts Amid Uproar A New York Starbucks. The chain is dealing with fallout from the arrests of two nonpaying black customers at a Philadelphia store. Starbucks Policy Is Murky A lack of direction on handling nonpaying guests is viewed as contributing to arrests BY JULIE JARGON The arrests of two nonpaying guests at a Starbucks Corp. cafe earlier this month have raised questions among some employees about how to handle such situations. Starbucks Chief Executive Kevin Johnson said it was wrong that a Philadelphia manager called the police about two black men who asked to use the bathroom without purchasing anything and then allegedly refused to leave when asked. Interviews with current and former Starbucks managers and baristas across the country suggest that the company’s guidelines on how to treat lingering nonpaying guests in general are vague at best—if they exist at all. The people interviewed said they were unaware of a written policy on how long guests are allowed to stay in a Starbucks cafe without buying anything. Contributing to the lack of clarity, employees said, is that Starbucks and its business model foster the idea of its shops as the “third place” in customers’ lives, a place to hang out that isn’t home or work. The people interviewed said training hasn’t taught employees—Starbucks calls them partners—to deal with lingering guests, instead focusing on what to do in the event of a theft or armed robbery. They said their understanding is decisions about whether and when to ask nonpaying guests to leave and whether to bar bathroom access are left to Philly Location Had No Clear Guideline Starbucks’s own explanation of its guidelines for employees in the Philadelphia store appears contradictory. “In this particular store the guidelines were that partners must ask unpaying customers to leave the store, and police were to be called if they refused. Of course there are circumstances where the police should be called, for example when there’s a major disruption or dangerously aggressive behavior, but that was not the case in this situation. The police should never have been called,” a company spokesthe discretion of individual store managers. “It’s been a gray area at Starbucks for a long time,” said a Starbucks executive who used to manage stores. A spokeswoman for Starbucks said because it has 28,000 stores world-wide, “different regions, circumstances and cultural norms necessitate different guidelines” for each. Sarah Madden, a former Starbucks barista in New York City who now works at another restaurant, said, “There was no policy at my store—we did what we wanted, we were in a high-volume store, so we didn’t really care if people hung out.” “If a company has a policy and doesn’t support a store when it enforces that policy, it seems very hypocritical,” said Ms. Madden, who while at Starbucks was involved in some unsuccessful efforts at unionizing. A current Starbucks employee said within the com- woman said in a written statement. The spokeswoman said all of the company-owned Starbucks in the Philadelphia area have signs informing people that the bathrooms and the lobby are for paying customers only. The Philadelphia store manager who called the police hasn’t been identified. Starbucks said she has left the company as part of a mutual decision. An attorney representing the two men, who appeared on television-news programs on Thursday, didn’t return calls seeking comment. Philadelphia Police Commissioner Richard Ross apologized to the two men who were ar- rested. The police commissioner told reporters at a Thursday news conference that he assumed Starbucks didn’t allow nonpaying guests to linger in its stores, and he believes the officers who made the arrests thought so, too. Starbucks said it is working with outside experts and community leaders to review its training and practices. The company plans to close all of its more than 8,000 company-owned U.S. stores for an afternoon in May for antibias education sessions for its employees. An additional 5,000-plus stores operated by licensees will receive the antibias training materials later. pany there are mixed feelings about the way top executives treated the Philadelphia manager. “Store managers are more sympathetic to her because most managers have had to ask people to leave their store at some point,” this person said. Sena Reid, a barista at a Starbucks in downtown Los Angeles, said she feels the Philadelphia manager’s decision to call the police was “totally wrong,” but added that a policy stating it would be appropriate to call police about nonpaying guests only when they are disruptive might have prevented what happened. Leaving such decisions to an individual employee’s judgment without more corporate guidance can lead to problems, organizational experts say. Even the definition of what constitutes “disruptive” can vary from person to person. “It’s not enough to say it’s OK to call police when someone is loitering. You have to define what loitering is,” said Joelle Emerson, founder and chief executive of Paradigm, a consulting firm that advises companies on inclusion and diversity. Jamie-Lynn Riffenberg, who worked at Starbucks stores in Colorado and North Carolina on and off for five years, said it was hard to know where to draw the line with nonpaying guests, who often included homeless people coming in to warm up or to get a free cup of water. “If you’re too welcoming, they want to come more and more, and stay longer, and it can snowball,” said Ms. Riffenberg. Ms. Riffenberg and others said people have different ideas about how long is too long to stay without buying something. “To some people, that might mean hanging around for 30 minutes without paying, but to someone else it might mean two hours,” she said. “There’s too much room for variance.” Overseas Markets Beckon U.S. Hospitals BY MELANIE EVANS ProMedica, a nonprofit operating more than a dozen hospitals across Rust Belt communities in Ohio and Michigan, is looking to a new market to bolster its anemic growth: China. Executives and staff from the Toledo-based nonprofit have been touring hospitals in Shanghai, Shenzhen and Chengdu, exploring possible deals in the world’s secondlargest economy that they hope will help offset weak revenue growth at home. “We have to look outside our traditional world if we’re going to survive,” said Randy Oostra, president and chief executive of the hospital group. “The economic model is tough” in ProMedica’s domestic markets, where populations are stagnant or declining and where cost pressures and competition are shifting medical care outside of hospitals, he said. The hospital industry has been slower to globalize than many other U.S. sectors, daunted by the investment required and content with what was for many years a robust domestic market. Some prestigious U.S. medical centers and HCA Healthcare Corp. entered overseas markets years ago, but most American hospital systems have stayed home. Now, more are seeking crossborder deals for the first time, while others are expanding their Buying Abroad U.S. health-services corporations snapped up international assets in more than 100 deals since 1995. Owners of hospitals and clinics were the biggest acquirers. Number of deals Deals by U.S. acquirer 14 deals Other* Hospitals/ Clinics 12 10 111 total deals 1995-2017 8 6 4 Outpatient/ Home care 2 0 1995 2000 ’05 ’10 Practice ’15 ’17 management *Includes health-services subsectors Source: Dealogic overseas reach. Deals range from consulting and management contracts to acquisitions. Markets attracting U.S. interest are diverse: from posh London neighborhoods to booming Chinese cities and other investments scattered across Europe and Latin America. The push is an effort to diversify revenue as pressure intensifies from U.S. consumers and policy makers to cut medical spending, some executives said. Others said new markets abroad offer more attractive margins or more favorable payment models. A more Professional services/ Nursing Misc. homes THE WALL STREET JOURNAL. global reach can also help in the development of ties with international researchers, a potential benefit to U.S. academic medical centers, officials said. Boston-based Steward Health Care System reached a deal in February to run Malta’s two public hospitals and open a third. UPMC, which is affiliated with the University of Pittsburgh, has long provided consulting and management services in several countries and is now looking to buy hospitals, cancer centers and primarycare networks in Italy, Ireland, Kazakhstan and China, a com- pany executive said. Other U.S. hospital corporations have struck deals in the U.K., Colombia and France in recent years. The efforts have gained momentum with a health-care overhaul in China, where rising rates of chronic disease and an aging population have increased health spending. China in recent years has said it would allow foreign ownership of some hospitals as part of the overhaul. “The sheer demand is just massive” in China, attracting investment from insurance companies, entrepreneurs and public and private infrastructure developers, said Axel Baur, a senior partner for McKinsey & Co. who is based in Hong Kong. Developers in China are looking to U.S. hospitals for brand recognition and expertise training staff and setting medical protocols, Dr. Baur said. Boston-based Brigham Health and Massachusetts General Hospital are helping Chinese partners open new hospitals, while Ohio’s Cleveland Clinic disclosed to investors last year that it would consult for a Chinese developer. “The project is in the very early stages,” said Cleveland Clinic spokeswoman Angela Kiska. Dealogic data show overseas acquisitions by U.S. hospital and health-service corporations are on the rise, though the numbers remain small compared with the consumer-product, tech and pharmaceutical sectors. SIT LIKE AN ASl:RONAUT Relieve Back Pain 844-697-8246 Svagorelief.com 844-MY-SVAGO Order before May 4th to receive exclusive offers: Free Shipping • 30 Day Risk Free Return . B4 | Monday, April 23, 2018 THE WALL STREET JOURNAL. BUSINESS & TECHNOLOGY WSJ.com/Tech U.S.-China Trade Clash Thwarts Google Android growth at risk as phone maker ZTE loses access to deals with American firms In February, a Google executive appeared at a tech conference in Barcelona touting a new, low-cost smartphone outfitted with a custom version of the company’s popular mobile operating system. Less than two months later, that phone’s future is in doubt. The U.S. has barred the device’s manufacturer, ZTE Corp. of China, from working with American companies, meaning the specially made Android software that powers the phone is off-limits. The government intervention highlights an unforeseen challenge for Google in a bid to get its mobile software in the hands of wider swaths of users. Google, a unit of Alphabet Inc., is relying on several Chinese companies to distribute its Android apps to millions of less-affluent smartphone users, even as rising trade tensions between China and the U.S. are making those partnerships more risky. Representatives for Google and ZTE declined to comment. Partners such as ZTE are important to Google as it competes with Apple Inc. and Samsung Electronics Co. for users of mobile services. Google’s Android operating system runs on over 80% of smartphones globally, but the company doesn’t charge anything for the operating system. Instead, it earns money ANDREU DALMAU/EPA/SHUTTERSTOCK BY DOUGLAS MACMILLAN AND LIZA LIN A sign in Barcelona promoted ZTE’s Blade V9 smartphone earlier this year. ZTE is now barred from working with U.S. companies. from licensing fees, sales from its app store, and ads running on Android apps, while collecting valuable user data. Google struggles to reach users of Apple phones, which run the iOS operating system and come preloaded with apps, and faces more competition from Samsung, the world’s largest seller of Android devices, which equips phones with its own versions of communication and productivity apps. Google also derives little value from Android phones in China, despite representing 86% of smartphones shipped there last year, according to researcher Canalys. Google’s services have been banned in the country since the search giant exited China over concerns of censorship in 2010; phone makers there run apps made by Chinese tech companies Baidu Inc. and Tencent Holdings Ltd. But elsewhere, where Google’s apps aren’t banned, Android is essential to the internet giant, especially on lower-cost phones. In the U.S., about one-quarter of U.S. customers pay less than $100 for smartphones, according to Neil Shah, an analyst with research firm Counterpoint. Morgan Stanley estimates Alphabet’s revenue from mobile-search ads and a cut of sales from apps sold in the Google Play store was about $33.8 billion last year, or about 30% of the company’s overall revenue. ZTE was the first company to carry the “Android Go” operating system on a phone built for the U.S. market. The $80 Tempo Go, released on March 30, features new versions of popular mobile apps, such as Google Maps and Gmail, designed to load faster and take up less space on lower-cost phone models. Phones bundled with Android Go are offered outside of the U.S. by Chinese phone makers TCL Corp. and Transsion Holdings, as well as Finland’s Nokia Corp. and India’s Lava International Ltd. The operating system and suite of Google apps takes up 50% less space than the regular version of Android. Huawei Technologies Co., a Chinese hardware manufacturer labeled as a national-security threat by the U.S. government, said it plans to start selling a phone with Android Go in South Africa soon. Huawei has long denied its products pose a security threat. ZTE, the fourth-largest seller of smartphones in the U.S., looked like an inroad to more potential users of Google’s mobile services. Remarkably, the Shenzhen-based company almost doubled its share of the U.S. market last year to 11.2%, according to Canalys, by nurturing relationships with mobile carriers, opening five research-and-development centers in the country and raising its spend- MIMS droid, Google Maps asks users to turn on location services—justifiable, but this enables geo-targeted ads. All of this is ostensibly done with your permission. But it’s hard to understand how even an expert could give meaningful informed consent to the average data request, says Dr. Narayanan. SIMON DAWSON/BLOOMBERG NEWS Continued from page B1 gather your data. Google Analytics is the web’s most dominant analytics platform. Used on the sites of about half of the biggest companies in the U.S., it has a reach of 30 million to 50 million sites. Google Analytics tracks you whether or not you are logged in. M eanwhile, the billionplus people who have Google accounts are tracked in even more ways. In 2016, Google changed its terms of service, allowing it to merge its trove of tracking and advertising data with the personally identifiable information from our Google accounts. Google uses, among other things, our browsing and search history, apps we’ve installed, demographics such as age and gender and, from its own analytics and other sources, where we’ve shopped in the real world. Google says it doesn’t use information from “sensitive categories” such as race, religion, sexual orientation or health. Because it relies on cross-device tracking, it can spot logged-in users no matter which device they’re on. This is why Google and Facebook are dominant in online advertising. By pouring huge amounts of our personal data into the latest artificial-intelligence technology, they can determine who—and where—we really are, whether or not we reveal ourselves voluntarily. An Android pavilion in Barcelona in February. Facebook mines Android users’ call and text history. Google fuels even more data harvesting through its ad marketplaces. There are as many as 4,000 data brokers in the U.S., and collectively they know everything about us we might otherwise prefer they didn’t—whether we’re pregnant, divorced or trying to lose weight. Google works with some of these brokers directly but the company says it vets them to prevent targeting based on sensitive information. While data brokers can sell this information to anyone who might be interested, many of their customers are marketers who need another component: Google’s AI, which delivers “look alike” audiences—people similar to the ones in the brokers’ data. Google also is the biggest enabler of data harvesting, through the world’s two bil- lion active Android mobile devices. Because Google’s Android OS helps companies gather data on us, Google is also partly to blame when troves of that data are later used improperly, says Woodrow Hartzog, a professor of law and computer science at Northeastern University. A good example of this is the way Facebook has harvested Android users’ call and text history. Facebook never got this level of access from Apple’s iPhone, whose operating system is designed to permit less under-the-hood data collection. Android OS often allows apps to request rich data from users without accompanying warnings about how the data might be used. To be listed in Google’s Android app store, develop- ers must agree to request only the information they need. But that doesn’t stop them from using “needed” data for additional purposes. Designers call the ways marketers and developers cajole and mislead us into giving up our data “dark patterns,” tactics that exploit limits in our cognition. Google bans what it calls deceptive requests for user data, such as obscuring optout buttons. At issue is whether Google goes far enough. But Google itself uses what are arguably dark patterns to get people to switch to its own apps for things such as email. Android users of the Gmail app will be asked to enable access to the device’s camera and microphone again and again until they say yes. Similarly, on An- N ew European Union privacy rules are forcing companies to make comprehensible to mere mortals what data they gather and how they use it. But in many cases, Google is pushing responsibility for obtaining data-gathering permissions to advertisers. It isn’t as if Google is unaware of the issues inherent in its business model. The company opposes the California Consumer Privacy Act, a November ballot measure, on the grounds it is vague and unworkable. It would grant consumers three protections: “the right to tell a business not to share or sell your personal information, the right to know where and to whom your data is being sold or shared, and the right to know that your service providers are protecting your information.” Even Facebook dropped its opposition to this act. The solution might be simple: Build better tools to give us a clear understanding of what we’re opting into. If given clear choices, many people might be fine with their data being collected. But it’s just as likely they would refuse, in ways that could affect Google’s bottom line. Associated Press LOS ANGELES—It was another weekend of buzz versus pure star power at the box office as the word-of-mouth sensation “A Quiet Place” found itself neck-and-neck again with Dwayne Johnson’s “Rampage.” This time buzz had the slight advantage. Studio estimates on Sunday placed “A Quiet Place,” with $22 million, in first, and “Rampage” in second with $21 million, but it was possible those numbers would shift when final results were tallied Monday. Still, John Krasinski’s “A Quiet Place” continues to be a miniphenomenon. With a $17 million production budget, “A Quiet Place” has grossed $132.4 million from Estimated Box-Office Figures, Through Sunday SALES, IN MILLIONS FILM 1. A Quiet Place DISTRIBUTOR WEEKEND* CUMULATIVE % CHANGE Paramount $22 $132.4 -33 $21 $16.2 $66.6 $16.2 -41 -- $14.7 $14.7 -- $7.9 $30.4 -58 2. Rampage 3. I Feel Pretty Warner Bros. STX Entertainment 4. Super Troopers 2 Twentieth Century Fox 5. Blumhouse’s Universal Truth or Dare *Friday, Saturday and Sunday Source: comScore MARK SCHAFER/STX ENTERTAINMENT/EVERETT COLLECTION ‘A Quiet Place’ Edges Out ‘Rampage’ at Box Office wide tally of $283 million, and Mr. Johnson has continued using his social-media accounts to hype the film and thank audiences. The staying power of both somewhat overshadowed the newcomers, such as Amy Schumer’s “I Feel Pretty” and the sequel to the 2001 cult comedy “Super Troopers,” both of which nevertheless managed to find their own niche audiences despite BUSINESS WATCH FRESENIUS Health-Care Firm Ends Deal for Akorn Fresenius SE on Sunday said it is terminating its $4.3 billion agreement to buy generic-drug maker Akorn Inc., but Akorn said it intends to see the deal go through. Fresenius on Sunday said Akorn has failed to fulfill several closing conditions, and that it found material breaches of Food and Drug Administration data-integrity requirements relating to Akorn’s operations during an investigation. Akorn said it “categorically” disagrees with the German health-care company’s claims. It said the investigation hasn’t found any facts that would result in a material adverse effect on its business, so Fresenius has no basis to terminate the transaction. —Colin Kellaher HONEYWELL INTERNATIONAL Profit Target Rises On Healthy Demand Honeywell International Inc. increased its expectations for earnings and organic sales growth for 2018, citing strong performance in the latest quarter. The conglomerate on Friday raised its annual profit target to between $7.85 and $8.05 a share from its prior estimate of $7.75 to $8 a share. It also guided organic sales growth to be between 3% and 5% and annual sales to be between $42.7 billion and $43.5 billion. Honeywell had estimated organic sales growth between 2% and 4% and for sales to be between $41.8 billion and $42.5 billion. —Allison Prang and Austen Hufford RECKITT-BENCKISER GROUP Scholl Brand Drags As Foot Gadget Flops ‘I Feel Pretty,’ featuring Amy Schumer, opened in third place. North American theaters in three weeks. “Rampage,” too, was down only 41% domestically in its second weekend and continues to rake in the dollars globally. The film boasts a world- ing on Washington lobbying. Because Tempo Go has only a fraction of the computing power of a standard smartphone, Google’s apps will generally work much better on it than those made by other companies. “It gives Google complete control over the phone,” Mr. Shah said. In a statement Friday, ZTE called the Commerce Department order “unacceptable,” saying it will “not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE, including a large number of U.S. companies.” The U.S. is by far ZTE’s biggest market, with nearly half of its phones shipped there last year, according to Canalys. Analysts said that while ZTE might be able to use some version of the Android operating system because of exemptions for open-source software, the company can’t include any Google apps on its phones. The government intervention would also prevent users from downloading Android software updates, which could put users’ privacy and safety at risk, analysts said. The clash between U.S. and Chinese trade officials could have a big impact on Google itself, which shut down its search engine there over the country’s censorship rules. Google could have a hard time returning to the country, said Mo Jia, Shanghai-based research analyst at Canalys. “Google has always wanted to come back to the Chinese market,” he said. “If the trade war continues, both the Chinese technology companies and the American technology companies are at risk.” largely negative reviews. “I Feel Pretty,” released by STX Entertainment, grossed an estimated $16.2 million—a little less than half of what Ms. Schumer’s “Trainwreck” opened to in July 2015. One of consumer-goods giant Reckitt Benckiser Group PLC’s highest-profile innovations is proving to be a thorn in its heel. Reckitt’s first-quarter sales growth missed expectations, and Reckitt blamed Scholl—Amopé in the U.S.—a foot-care brand it inherited in its $3.9 billion acquisition of SSL International in 2010. Scholl launched a rechargeable electronic foot file in 2016 to much fanfare, marketed as a device that could be used in and out of the shower, and sold for $65. But sales fell flat, hurting results for a string of quarters. —Saabira Chaudhuri . THE WALL STREET JOURNAL. Monday, April 23, 2018 | B5 . THE WALL STREET JOURNAL. B6 | Monday, April 23, 2018 BUSINESS & FINANCE HNA Cuts Deutsche Stake HNA Group Inc. has cut its stake in Deutsche Bank AG to 7.9% from 8.8%, the Chinese conglomerate disclosed Saturday, as it continues to unload its overseas holdings. This comes after HNA spent billions of dollars in financing and complex derivatives in 2017 to build its stake in the struggling German lender, becoming Deutsche Bank’s biggest shareholder, with a holding of just under 10%. Since that position was disclosed almost a year ago, Deutsche Bank shares have declined more than 30%. An HNA spokesman said Saturday the company “decided not to renew a part of the financing structure for our stake in Deutsche Bank,” citing “the current market environment.” The stake cut was disclosed in a regulatory filing. HNA is still committed to remaining “a major investor in Deutsche Bank,” the spokesman said. The conglomerate had previously said it didn’t have plans to reduce its Deutsche Bank stake. A Deutsche Bank spokesman declined to comment. The Chinese company has been selling off billions of dollars worth of real estate and other assets after a global acquisition spree left it cashstrapped and pressured by banks to reduce financing. Deutsche Bank has been dogged by consecutive full-year losses and questions about its investment-banking strategy. MICHELE LIMINA/BLOOMBERG NEWS BY JENNY STRASBURG ADVERTISEMENT Legal Notices Nimble labor markets and an emphasis on high-value exports have buoyed the Swiss economy. Strong Franc Fails to Sink Resilient Swiss Economy To advertise: 800-366-3975 or WSJ.com/classiﬁeds CLASS ACTIONS ! "#$%&%'($()%* ! ! ! ++ , ! ! 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All Rights Reserved. ZURICH—The euro briefly exceeded 1.20 Swiss francs Thursday and again early Friday, a level it hasn’t reached in over three years, marking a milestone for Switzerland’s economy that was battered, but not broken, by its strong currency. Switzerland’s ability to survive, and even thrive, is a counterpoint to recent comments by policy makers around the world who seemed to signal a preference for weaker currencies to juice exports or inflation. It is a contradiction that has bedeviled Switzerland for years. The Swiss economy was considered stable and safe by global investors, driving up the franc’s value, which in turn put the foundation of its export-led growth at risk. The Swiss lesson, analysts said, is that nimble labor markets, productivity and an emphasis on high-value exports that aren’t super sensitive to prices are just as important to a country’s competitiveness as the exchange rate. A strong currency raises purchasing power for households and businesses. “In 2015, when [the Swiss National Bank] gave up the euro-franc floor and you had WELLS Continued from page B1 the issues with the OCC, the people said. The struggles with the OCC enforcement action occur at a troubling time for Wells Fargo. Besides last week’s $1 billion settlement, which forced the bank to adjust recently reported first-quarter earnings by $800 million, Wells Fargo in February was hit with an enforcement action from the Federal Reserve for failing to have proper risk controls. That order barred the bank from growing past the $1.95 trillion in assets it had at the end of 2017. Much of the bank’s riskmanagement problems have related to its consumer-lending unit, which focuses on auto lending and mortgages, among other services. The latest anti-money-laundering problems Wells Fargo is contending with also relate to its controls. There are two main components of antimoney-laundering processes: One is knowing who the customer is, and the other is monitoring for suspicious activity. Wells Fargo is struggling with the former. In the years before the OCC’s anti-money-laundering enforcement action, it gave Wells Fargo several notices of deficiencies in these areas known as Matters Requiring Attention. Part of the reason for the enforcement action was the bank’s failure to address the issues the OCC had raised, the people familiar with the matter said. At the time of the 2015 action, Wells Fargo had more than 100,000 customer accounts it needed to verify with thousands requiring more specific work, the people said. Over the past year or so, Wells Fargo has reached out to thousands of clients requesting updated documentation. It needs those documents to keep those this sharp appreciation, people thought the economy would cave in but it didn’t. It looks like the Swiss economy was resilient to the strong franc,” said Stefan Gerlach, chief economist at EFG Bank and former deputy governor of Ireland’s central bank. The franc is by no means weak, and it is still considerably stronger than the 1.40to-1.50 rate to the euro before Europe’s debt crisis began in 2010. The Swiss currency is up 3% against the dollar in the past year. The Swiss have tried to devalue the franc on and off for several years. In September 2011, the SNB said that it wouldn’t allow the euro-franc rate to fall below 1.20 and that it would intervene in currency markets if needed to enforce that floor. They held the line for more than three years. But by early 2015 the peg became too costly to maintain and exposed the Swiss central bank to financial risks given the vast sums of foreign stocks and bonds it accumulated through years of currency intervention. Without warning, the SNB abandoned the euro-franc floor on Jan. 15, 2015. That sent the franc soaring as much as 30% against the euro in a clients. In particular, the bank’s business-banking division that serves small firms with annual sales ranging from $5 million to $20 million has been struggling for months to collect certain documentation related to proof of beneficial ownership. The effort has become even more challenging since another financial regulator—the Treasury Department’s Financial Crimes Enforcement Network—will implement more stringent rules around beneficial ownership starting next month that the bank plans to comply with, the people said. Earlier this year, wholesale unit head Perry Pelos stepped up efforts on the issue, hosting town halls with employees in a bid to get front-office bankers more involved, the people said. If Wells Fargo misses a June 30 deadline, it could mean another enforcement action. In particular, the bank is requiring that the activities of high-risk customers are covered in relationship memos, summarizing the relationship and anti-money-laundering risk for those customers, they said. The OCC has levied other settlements with big banks related to anti-money-laundering in recent months. In February, U.S. Bancorp agreed to pay $613 million in penalties for what regulators and prosecutors described as shoddy anti-money-laundering controls. The bank’s antimoney-laundering program was the focus of a 2015 consent order from the OCC. Akin to Wells Fargo’s current situation, Citigroup Inc. in January entered into a $70 million settlement with the OCC for failing to comply with a 2012 consent order related to antimoney-laundering deficiencies. single day even though the SNB also cut its deposit rate to minus-0.75%. In the blink of an eye, one euro went from buying 1.2 francs to buying less than one franc. That made Swiss products from watches to machine tools and ski vacations a lot more expensive in other countries. And it made foreign goods cheap, pushing consumer prices into negative territory. The worry was that this combination—coupled with negative interest rates—would plunge the wealthy but exportdependent economy into recession. While sectors like tourism suffered, the overall economy avoided recession and, in recent months, has been growing at around a 2% annual rate. The unemployment rate is below 3%. After years of deflation, annual inflation is positive, but low, at 0.8%. The trade surplus was 35 billion francs ($36.2 billion) last year, roughly 5% of Swiss GDP, led by its large surplus with the U.S. “If you’re Switzerland and you have fine-tuned manufacturing that’s hard to replicate, you can survive currency fluctuations,” said Peter Rosenstreich, head of market strategy at Swissquote Bank. New Settlement For $1 Billion Makes Dent in Wells Profit Wells Fargo & Co. still has a hangover. Long after other major banks moved beyond big regulatory settlements, Wells Fargo is still coping with them. The latest, a $1 billion pact unveiled Friday involving allegations of improper charges to consumers in the bank’s mortgage and autolending businesses, cut into the bank’s already-reported first-quarter earnings. Wells Fargo said its $1 billion settlement with the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency was prompting it to revise its first-quarter profit downward by $800 million. Wells Fargo indicated that regulators had offered to resolve the matter for the $1 billion amount. The bank on Friday didn’t elaborate on why it cut earnings by $800 million when the settlement was for $1 billion, and a spoksman for the bank declined to comment. One possible explanation is that Wells Fargo previously set aside reserves to cover $200 million of the amount. That could suggest the $1 billion fine may have been higher than the bank had been expecting before regulators made their offer. Barclays analyst Jason Goldberg noted, however, that a bank can reserve for a legal settlement only if it is probable and estimable. Wells Fargo “didn’t have enough evidence” a week ago to take the charge, he said. Instead, Wells Fargo had cautioned in its initial announcement of first-quarter results that it might later have to modify them if a settlement was reached. —Michael Rapoport . THE WALL STREET JOURNAL. Monday, April 23, 2018 | B7 MARKETS DIGEST New to the Market S&P 500 Index Dow Jones Industrial Average Last Year ago 20.57 17.60 2.40 All-time high 26616.71, 01/26/18 Current divisor 0.14523396877348 Last 2670.14 s 13.84, or 0.52% last week High, low, open and close for each of the past 52 weeks 24462.94 s 102.80, or 0.42% last week Trailing P/E ratio 25.31 P/E estimate * 16.45 High, low, open and close for each of Dividend yield 2.18 the past 52 weeks Year ago Trailing P/E ratio * 24.98 24.39 P/E estimate * 17.02 18.24 Dividend yield 1.95 1.98 All-time high 2872.87, 01/26/18 25900 2800 24700 2700 Week's high UP Friday's close t DOWN Monday's open IPOs in the U.S. Market Initial public offerings of stock expected this week; might include some offerings, U.S. and foreign, open to institutional investors only via the Rule 144a market; deal amounts are for the U.S. market only Symbol/ Expected pricing date Filed Issuer/business 4/25 Ceridian HCM Holding Inc CDAY Provides enterprises with human capital management software. N 3/26 65-day moving average Monday's open t Friday's close Public Offerings of Stock 23500 2600 22300 2500 4/26 Week's low 2400 21100 3/28 65-day moving average 4/26 4/2 2300 19900 4/26 3/30 18700 2200 17500 2100 4/26 Bars measure the point change from Monday's open J A S O N D J F M t Primary market NYSE weekly volume, in billions of shares M A t J Composite J J A S O N D J F M J A S O N D J F M High Latest Week Close Net chg Low % chg 52-Week Close (l) Low Dow Jones Industrial Average 24858.97 24375.04 24462.94 Transportation Avg 10838.86 10437.40 10578.90 Utility Average 707.03 685.52 691.14 Total Stock Market 28197.33 27626.28 27717.69 721.89 Barron's 400 733.90 714.88 102.80 209.41 8.36 173.38 8.07 l 0.42 20547.76 2.02 8783.74 1.22 647.90 0.63 24380.42 1.13 624.99 % chg High 26616.71 11373.38 774.47 29630.47 757.37 l l l l % chg YTD 3-yr. ann. -1.0 -0.3 -4.5 0.2 1.5 19.1 15.8 -2.1 13.7 15.0 7319.58 7115.85 6856.96 6633.08 7146.13 6667.75 2717.49 2660.61 1932.20 1887.93 980.27 953.49 2670.14 1900.50 961.76 39.48 39.41 0.56 0.59 13.84 16.64 8.99 0.52 0.88 0.94 l 5910.52 5442.05 l 20.9 22.5 3.5 4.2 12.7 14.7 500 Index MidCap 400 SmallCap 600 l 2348.69 1691.67 817.25 2872.87 1995.23 979.57 -0.1 13.7 10.6 -0.004 2.7 14.6 8.3 7.5 10.0 l l 14.61 61.11 4.53 -1.26 -58.25 -1.43 -7.64 1.01 1.03 3.08 -58.57 -4.41 -0.53 -3.04 l 1355.89 11389.13 503.24 3480.26 499.09 0.95 88.87 1.23 76.42 2.04 117.79 992.94 9.14 0.94 0.49 0.82 l l l l l l l l l Nasdaq PHLX 1610.71 13637.02 589.69 4939.86 593.12 116.52 93.26 165.78 1445.9 37.32 International Stock Indexes Region/Country Index World Close DJ Americas Sao Paulo Bovespa S&P/TSX Comp S&P/BMV IPC Santiago IPSA 0.83 0.43 0.26 2660.42 345.52 229.08 641.33 85550.09 15484.32 48431.58 4271.43 0.57 1.44 1.38 566.72 60761.74 14951.88 45826.64 3593.92 Stoxx Europe 600 381.84 Stoxx Europe 50 3041.12 Eurozone Euro Stoxx 387.28 Euro Stoxx 50 3494.20 Austria ATX 3480.95 Belgium Bel-20 3921.20 France CAC 40 5412.83 Germany DAX 12540.50 Greece Athex Composite 844.70 Israel Tel Aviv 1484.42 Italy FTSE MIB 23829.34 Netherlands AEX 550.38 Portugal PSI 20 5527.86 Russia RTS Index 1145.80 South Africa FTSE/JSE All-Share 57581.73 Spain IBEX 35 9884.20 Sweden OMX Stockholm 576.01 Switzerland Swiss Market 8807.80 U.K. FTSE 100 7368.17 EMEA Asia-Pacific Australia China Hong Kong India Japan Malaysia Singapore South Korea Taiwan S&P/ASX 200 Shanghai Composite Hang Seng S&P BSE Sensex Nikkei Stock Avg FTSE Bursa Malaysia KLCI Straits Times Kospi TAIEX 52-Week Range Close Low 3083.28 397.33 266.80 The Global Dow DJ Global Index DJ Global ex U.S. Americas Brazil Canada Mexico Chile Latest Week % chg 5868.80 3071.54 30418.33 34415.58 22162.24 1887.75 3573.38 2476.33 10779.38 –0.69 0.74 • • • • • • • • • • 363.18 2894.75 –0.05 366.11 1.19 3278.72 1.34 2851.63 1.87 3770.45 0.85 5031.92 1.84 11787.26 0.79 671.57 4.16 1363.50 1.56 19742 2.14 507.15 0.43 4876.43 0.92 973.33 3.74 50831.89 1.80 9381.0 1.20 545.83 2.88 8509.29 0.36 6888.69 1.43 0.70 0.68 –2.77 –1.27 0.65 1.76 1.03 2.06 0.87 –1.70 5651.8 3052.79 24042.02 29365.30 18620.75 1713.13 3139.83 2165.04 9717.41 • • • • • • • • • • • • • • • • • • • • • • • • • • High YTD % chg 3323.74 425.41 285.34 –0.1 0.0 0.0 687.75 87652.64 16412.94 51713.38 4442.56 –0.1 12.0 –4.5 –1.9 1.4 402.81 3276.11 404.86 3697.40 3688.78 4176.88 5541.99 13559.60 886.54 1554.30 23890 570.82 5791.88 1324.62 61684.77 11135.4 600.20 9611.61 7778.64 –1.9 –4.3 0.5 –0.3 1.8 –1.4 1.9 –2.9 5.3 –1.7 9.0 1.1 2.6 –0.7 –3.2 –1.6 1.3 –6.1 –4.2 6135.8 3559.47 33154.12 36283.25 24124.15 1895.18 3609.24 2598.19 11253.11 –3.2 –7.1 1.7 1.1 –2.6 5.1 5.0 0.4 1.3 Nasdaq Composite Oct. 26, ’17 Merchants Bancorp MBIN 16.00 115.0 29.6 180 days s 39.48, or 0.56% Oct. 26, ’17 Nexa Resources SA NEXA 16.00 570.4 11.8 180 days ALTR 13.00 179.4 129.4 180 days LOMA 19.00 1096.9 12.0 180 days April 29 Oct. 31, ’17 Altair Engineering 7150 Company SYMBOL IPO date/Offer price 7050 27650 Source: SIX Financial Information;WSJ Market Data Group 0.76 1.11 4.95 2.22 YTD % chg 4.55 4.15 68.38 0.99 1.47 13.17 0.004 0.15 -7.25 U.S. Dollar Index 90.27 0.47 0.52 -2.02 WSJ Dollar Index 84.36 0.56 0.67 -1.88 Euro, per dollar 0.8138 0.0028 0.34 -2.33 Yen, per dollar U.K. pound, in dollars 107.65 0.28 -4.48 0.30 2.33 1.40 -0.0240 -1.69 3.60 52-Week Low Close(l) High % Chg DJ Commodity 532.01 l 658.32 16.78 TR/CC CRB Index 166.50 l 202.97 11.02 Crude oil, $ per barrel 42.53 l 68.47 37.81 Natural gas, $/MMBtu 2.55 3.63 -11.67 l l 1208.60 1362.40 3.83 U.S. Dollar Index 88.59 l 99.98 -9.71 WSJ Dollar Index 82.70 l 90.54 -5.97 0.80 0.93 -12.71 l 104.73 114.29 -1.30 l l 1.26 1.43 9.26 Real-time U.S. stock quotes are available on WSJ.com. Track mostactive stocks, new highs/lows, mutual funds and ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com U.S. consumer rates Selected rates A consumer rate against its benchmark over the past year Five-year ARM, Rate 2.00 Langley FCU Newport News, VA 3.00% 800-826-7490 1.00 United Teletech Financial 3.25% Tinton Falls, NJ 732-530-8100 t 0.00 M J J A S O ND J FMA 2017 2018 Interest rate East Cambridge Savings Bank 3.38% Cambridge, MA 866-354-3272 Yield/Rate (%) Last (l)Week ago Federal-funds rate target 1.50-1.75 1.50-1.75 Prime rate* 4.75 4.75 Libor, 3-month 2.35 2.36 Money market, annual yield 0.35 0.36 Five-year CD, annual yield 1.68 1.69 30-year mortgage, fixed† 4.42 4.49 15-year mortgage, fixed† 3.88 3.97 Jumbo mortgages, $424,100-plus† 4.75 4.67 Five-year adj mortgage (ARM)† 4.46 4.32 New-car loan, 48-month 3.86 3.86 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.75 l l 4.00 l 1.16 0.25 l l 1.29 l 3.73 l 2.99 l 4.21 l 3.21 l 2.85 1.50 4.75 2.36 0.36 1.69 4.49 3.97 4.96 4.50 3.87 1.50 1.50 2.08 -0.02 0.20 0.73 0.94 0.74 1.26 0.93 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 Friday t One year ago 1 3 6 month(s) 1 2 3 5 710 years maturity 15% 3.00 10 2.25 5 1.50 0 0.75 –5 0.00 –10 30 Yen WSJ Dollar index 2017 2018 Corporate Borrowing Rates and Yields Bond total return index Spread +/- Treasurys, Yield (%) in basis pts, 52-wk Range Last Wk ago Last Low High 10-yr Treasury, Ryan ALM DJ Corporate Aggregate, Barclays Capital High Yield 100, Merrill Lynch Fixed-Rate MBS, Barclays Muni Master, Merrill EMBI Global, J.P. Morgan 2.949 3.828 3.280 5.891 3.410 2.575 6.139 n.a. 307 n.a. 15 319 15.73 4.9 ... 15.50 3.3 7.3 13.81 –7.9 3.6 10.15 1.5 0.3 34 297 20 5 289 44 376 34 18 335 Zuora 19.72 40.9 ZUO April 12/$14.00 Spotify* 158.45 20.0 SPOT April 3/$132.00 Genprex 4.28 –14.4 GNPX March 29/$5.00 iQiYi 17.81 –1.1 IQ March 29/$18.00 Unum Thera 11.98 –0.2 UMRX March 29/$12.00 –1.4 6.3 –8.9 14.5 7.8 Secondaries and follow-ons expected this week in the U.S. market Symbol/ Primary Amount exchange ($mil.) Expected Issuer/Business Friday’s price ($) Bookrunner(s) April. 23 Mereo Biopharma Group plc MREO Healthcare Nq; Intl 68.8 n.a. Cowen & Company LLC, BMO Cptl Mkts, RBC Cptl Mkts April. 24 Valeritas Holdings Inc Healthcare VLRX Nq 23.7 3.12 Oppenheimer Inc, Fortress Biotech Inc April. 25 Taiwan Liposome Co Ltd Healthcare TLC Nq 35.0 n.a. Cantor Fitzgerald & Co Off the Shelf “Shelf registrations” allow a company to prepare a stock or bond for sale, without selling the whole issue at once. Corporations sell as conditions become favorable. Here are the shelf sales, or takedowns, over the last week: Issuer/Industry Takedown date/ Deal value Registration Registration date ($ mil.) (mil.) Clovis Oncology Healthcare April 16 Jan. 3,317 $300.0 ... JPM, BofA ML Clovis Oncology Healthcare April 16 Jan. 3,317 $100.0 ... JPM, BofA ML Bookrunner(s) Public and Private Borrowing Treasurys Monday, April 23 Auction of 13 week bill; announced on April 19; settles on April 26 Auction of 26 week bill; announced on April 19; settles on April 26 Tuesday, April 24 Auction of 4 week bill; announced on April 23; settles on April 26 Auction of 52 week bill; announced on April 19; settles on April 26 Auction of 2 year note; announced on April 19; settles on April 30 Wednesday, April 25 Auction of 2 year FRN; announced on April 19; settles on April 30 Auction of 5 year note; announced on April 19; settles on April 30 Thursday, April 26 Auction of 7 year note; announced on April 19; settles on April 30 Public and Municipal Finance Deals of $ 150 million or more expected this week Sale Final maturity Issuer April 23 Nov. 1, 2024 Dallas & Fort Worth Cities-Texas April 24 May 1, 2034 Massachusetts April 24 prelim. Portland CityOregon April 25 May 1, 2028 Illinois April 26 prelim. April 27 prelim. April 27 prelim. Total ($mil.) Rating Bookrunner/ Fitch Moody’s S&P Bond Counsel(s) 302.4 N.R. N.R. 500.0 N.R. N.R. 189.1 N.R. N.R. 500.0 N.R. N.R. North Carolina 150.1 N.R. Turnpike Authority New York 1,400.0 N.R. Transportation Dev San Antonio 208.2 N.R. City-Texas Texas Water 906.9 N.R. Development Board Univ of Virginia 200.0 N.R. Rector & Visitors N.R. N.R. N.R. N.R. N.R. N.R. BoA Merrill/ Bracewell LLP N.R. Preliminary/ Mintz Levin Cohn Ferris N.R. Preliminary/ Hawkins Delafield & Wood N.R. Preliminary/ Chapman and Cutler LLP/ Pugh Jones Johnson N.R. Preliminary/ Hunton & Williams N.R. Citi/— N.R. J P Morgan Securities LLC/— N.R. J P Morgan Securities LLC/— N.R. J P Morgan Securities LLC/— Source:Thomson Reuters/Ipreo Listed are the 300 largest closed-end funds as measured by assets. Closed-end funds sell a limited number of shares and invest the proceeds in securities. Unlike open-end funds, closed-ends generally do not buy their shares back from investors who wish to cash in their holdings. Instead, fund shares trade on a stock exchange. NA signifies that the information is not available or not applicable. NS signifies fund not in existence of entire period. 12 month yield is computed by dividing income dividends paid (during the previous twelve months for periods ending at month-end or during the previous fifty-two weeks for periods ending at any time other than month-end) by the latest month-end market price adjusted for capital gains distributions. Source: Lipper Friday, April 20, 2018 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group 2.828 3.716 3.190 5.819 3.350 2.529 6.009 ... Closed-End Funds | WSJ.com/funds Euro s 3.00% 877-369-3331 3.75% Yen, euro vs. dollar; dollar vs. major U.S. trading partners s Foxboro Federal Savings Foxboro, MA 3.00 5-year Treasury note yield AmericanAirlinesFederalCreditUnion 2.88% Ft Worth, TX 800-533-0035 t 4.00% 4.46% Bankrate.com avg†: Yield to maturity of current bills, notes and bonds 4.5 % Chg From Friday3s Offer 1st-day close ($) price close Other Stock Offerings April 27 prelim. s 5-year adjustablerate mortgage t (ARM) Benchmark Yields and Rates Treasury yield curve Forex Race 29.26 Company SYMBOL IPO date/Offer price *Direct listing. Sources: WSJ Market Data Group; FactSet Research Systems April 27 prelim. Consumer Rates and Returns to Investor % Chg From Friday3s Offer 1st-day close ($) price close Level One Bancorp LEVL April 20/$28.00 Pivotal Software PVTL April 20/$15.00 GrafTech Intl EAF April 19/$15.00 Surface Oncology SURF April 19/$15.00 Pure Acquisition PACQU April 13/$10.00 27350 Natural gas, $/MMBtu 2.739 Gold, $ per troy oz. 1336.70 -8.10 -0.60 IPO Scorecard Performance of IPOs, most-recent listed first 27950 13 16 17 18 19 20 April Sources: Dealogic; WSJ Market Data Group 7250 28250 Crude oil, $ per barrel WSJ .COM Offer Offer amt Through Lockup Symbol price($) ($ mil.) Friday (%) provision Issuer 180 days s 173.38, or 0.63% TR/CC CRB Index 10.00/ MS, JPM, Jefferies, 12.00 RBC Cptl Mkts N 180 days 653.80 201.92 U.K. pound, in dollars SMAR 43.7 DJ US TSM DJ Commodity Yen, per dollar Smartsheet Inc 64.1 Last Week Close Net chg %Chg Euro, per dollar Nq 399.7 Commodities and Currencies Gold, $ per troy oz. Developer and manufacturer of semiconductors 133.6 13 16 17 18 19 20 April Sources: SIX Financial Information; WSJ Market Data Group 11.6 16.00 22.00 7350 1.9 7.3 -1.6 4.3 -1.1 2.4 8.1 4.0 -3.7 -3.4 0.6 13.7 -0.2 6.1 3.1 -10.1 1.4 21.9 52.9 8.3 13.4 10.7 7.5 31.2 5.2 19.8 -2.0 -1.8 28.0 15.4 13.00/ Stifel, RJ & Associates, 15.00 Needham, Canaccord Genuity 22.00 last week 1550.51 1564.12 12571.21 12607.16 551.73 556.26 4556.77 4565.86 523.72 525.03 104.68 107.39 83.43 85.12 148.74 154.18 1265.42 1270.83 16.88 14.57 5.4 LASR Oct. 31, ’17 Loma Negra CIASA Other Indexes Russell 2000 1592.04 NYSE Composite 12774.37 Value Line 566.43 NYSE Arca Biotech 4692.34 NYSE Arca Pharma 536.39 KBW Bank 108.02 PHLX§ Gold/Silver 86.10 PHLX§ Oil Service 156.57 PHLX§ Semiconductor 1360.62 CBOE Volatility 17.66 nLight Corp Lockup expiration Issue date last week S&P 14.00/ JPM, BofA ML Nq April 24 Oct. 26, ’17 ForeScout Technologies FSCT 10.7 6.4 5.3 8.0 7.5 7588.32 7131.12 8.5 GSHD April 23 Oct. 25, ’17 National Vision Holdings EYE Nasdaq Stock Market Nasdaq Composite Nasdaq 100 24.00/ MS, JPM, Citi, 26.00 BofA ML, DB Below, companies whose officers and other insiders will become eligible to sell shares in their newly public companies for the first time. Such sales can move the stock’s price. *Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes 21.7 Lockup Expirations Internet-search pioneer Google Inc. was expected within days to announce that it would push forward with an initial public offering. A Goosehead Insurance Inc Bookrunner(s) 19.00/ GS, JPM, Credit Suisse, Nq Provides a spreadsheetbased work collaboration platform. A Financial Flashback The Wall Street Journal, April 23, 2004 30 20 10 0 AM J 3/26 21.0 21.00 DB, Barclays, Citi, Jefferies, CIBC, WFS DOCU Personal insurance agency. 200-day moving average AM DocuSign Inc Provides a cloud-based electronic signature platform. 200-day moving average Pricing primary Shares Range($) exchange (mil.) Low/High Total Return 52-wk 3-yr -3.91 -1.15 0.27 1.66 -0.53 0.82 3.269 3.363 -0.56 0.83 0.888 1.739 1.379 4.658 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch 52 wk Prem Ttl Fund (SYM) NAV Close /Disc Ret General Equity Funds Adams Divers Equity Fd ADX 17.57 14.91 -15.1 18.4 Boulder Growth & Income BIF 12.80 10.74 -16.1 19.8 Central Securities CET 33.07 27.01 -18.3 16.3 CohSteer Opprtnty Fd FOF 13.38 12.44 -7.0 5.8 Cornerstone Strategic CLM 12.74 15.56 +22.1 17.0 Cornerstone TR Fd CRF 12.36 15.44 +24.9 17.2 EtnVnc TaxAdvDiv EVT 23.01 22.18 -3.6 10.9 Gabelli Dividend & Incm GDV 24.14 22.26 -7.8 11.9 Gabelli Equity Trust GAB 6.36 6.13 -3.6 12.8 Genl American Investors GAM 40.28 33.83 -16.0 11.7 Guggenheim Enh Fd GPM 8.58 8.42 -1.9 14.9 HnckJohn TxAdv HTD 23.76 21.91 -7.8 -5.6 Liberty All-Star Equity USA 6.87 6.36 -7.4 28.1 Royce Micro-Cap RMT 10.66 9.68 -9.2 21.1 52 wk Prem Ttl Fund (SYM) NAV Close /Disc Ret Royce Value Trust RVT 17.49 16.07 -8.1 19.6 Source Capital SOR 44.93 40.22 -10.5 10.0 Tri-Continental TY 29.98 26.72 -10.9 19.2 Specialized Equity Funds Adams Natural Rscs Fd PEO 23.34 19.65 -15.8 8.9 AllnzGI NFJ Div Interest NFJ 14.54 12.80 -12.0 5.2 AlpnGlblPrProp AWP 7.02 6.23 -11.3 15.4 BlkRk Enh Cap Inco CII 16.90 15.86 -6.2 16.7 BlkRk Engy Res Tr BGR 15.67 14.33 -8.6 14.5 BlackRock Enh Eq Div Tr BDJ 9.73 8.81 -9.5 10.0 BlackRock Enh Gl Div Tr BOE 12.27 11.36 -7.4 6.6 BlkRk Intl Grwth&Inco BGY 6.63 6.00 -9.5 9.4 BlkRk Health Sci BME 35.54 34.92 -1.7 9.3 BlackRck Rscs Comm Str Tr BCX 10.38 9.59 -7.6 20.1 BlackRock Science & Tech BST 30.11 30.80 +2.3 54.5 BlackRock Utilities Infr BUI 20.46 19.82 -3.1 3.3 CBREClarionGlblRlEstIncm IGR 8.35 7.30 -12.6 2.5 Sprott Physical Gold CEF NA 13.64 NA 4.2 ClearBridge Amer Engy CBA NA 7.34 NA -16.4 ClearBridge Engy MLP Fd CEM NA 13.66 NA -9.9 Clearbridge Engy MLP Opp EMO NA 10.71 NA -10.4 Clearbridge Engy MLP TR CTR NA 10.54 NA -13.5 Cohen & Steers Infr Fd UTF 23.79 21.62 -9.1 5.9 C&S MLP Incm & Engy Opp MIE 10.09 9.93 -1.6 -3.5 Cohen & Steers Qual Inc RQI 11.81 11.43 -3.2 -3.6 CohnStrsPfdInco RNP 20.67 18.21 -11.9 -1.0 Cohen & Steers TR RFI 12.03 11.91 -1.0 1.6 Continued on Page B8 . THE WALL STREET JOURNAL. B8 | Monday, April 23, 2018 CLOSED-END FUNDS wsj.com/funds Continued from Page B7 Prem NAV Close /Disc Fund (SYM) 52 wk Ttl Ret CLSeligmn Prem Tech Gr Fd STK 21.36 21.82 +2.2 Duff & Phelps DNP 8.89 10.67 +20.0 Duff&PhelpsGblUtilIncFd DPG 15.93 14.01 -12.1 Eaton Vance Eqty Inco Fd EOI 14.93 14.70 -1.5 Eaton Vance Eqty Inco II EOS 16.20 16.29 +0.6 EtnVncRskMngd ETJ 9.69 9.17 -5.4 Etn Vnc Tax Mgd Buy-Write ETB 15.50 15.69 +1.2 Eaton Vance BuyWrite Opp ETV 14.57 14.94 +2.5 Eaton Vance Tax-Mng Div ETY 12.06 11.92 -1.2 EatonVanceTax-MngdOpp ETW 11.28 11.65 +3.3 EtnVncTxMngGlDvEqInc EXG 9.22 9.08 -1.5 Fiduciary/Clymr Opp Fd FMO 11.72 11.48 -2.0 FT Energy Inc & Growth Fd FEN 21.86 22.11 +1.1 FstTrEnhEqtIncFd FFA 16.13 15.09 -6.4 First Tr Engy Infr Fd FIF 16.44 15.63 -4.9 First Tr MLP & Engy Incm FEI 12.84 12.72 -0.9 Gabelli Hlthcr & Well GRX 11.32 9.52 -15.9 Gabelli Utility Tr GUT 4.86 5.82 +19.8 GAMCOGlblGoldNatRscs&Inc GGN 5.21 5.05 -3.1 GoldmanSachsMLPIncOpp GMZ 8.94 8.55 -4.4 Goldman Sachs MLP Energy GER 6.05 6.23 +3.0 John Hancock Finl Opps Fd BTO 37.87 38.67 +2.1 Macquarie Glbl Infrstrctr MGU 25.76 22.44 -12.9 NeubergerBermanMLPIncm NML 8.75 8.55 -2.3 Neubrgr Brm Rl Est Sec Fd NRO NA 4.62 NA Nuveen Dow 30 Dynamic DIAX 18.48 18.33 -0.8 Nuveen Core Eq Alpha JCE 14.94 14.80 -0.9 Nuveen Diversified Div JDD 12.03 12.10 +0.5 Nuveen Engy MLP Fd JMF 10.47 10.33 -1.3 NuvNASDAQ100DynOver QQQX 22.78 24.90 +9.3 Nuveen Real Est Incm Fd JRS 9.96 9.47 -4.9 Nuveen Real Asset Income JRI 18.60 16.24 -12.7 13.9 5.5 -8.3 20.3 26.1 10.2 3.6 6.1 16.8 16.1 16.4 -15.4 -12.5 11.8 -12.1 -14.1 -1.3 -2.8 2.6 -9.7 -12.3 17.3 1.9 -7.4 -6.2 23.2 24.1 10.9 -13.8 25.5 -9.5 0.6 Prem NAV Close /Disc Fund (SYM) NuvS&P500DynOverwrite SPXX NA 18.16 NuveenS&P500Buy-Write BXMX 13.76 13.67 Reaves Utility Fund UTG 30.73 28.10 Tekla Hlthcr Investors HQH 23.13 21.10 Tekla Healthcare Opps Fd THQ 18.28 16.42 Tekla Life Sciences HQL 19.56 19.07 Tekla World Hlthcr Fd THW 13.90 12.78 Tortoise Energy TYG 25.46 27.27 Tortoise MLP Fund NTG 16.19 17.36 Voya Gl Equity Div IGD 7.87 7.28 Income & Preferred Stock Funds Calamos Strat Fd CSQ 12.79 11.96 Cohen & Steers Dur Pfd LDP 26.40 25.50 Cohen & Strs Sel Prf Inco PSF 26.69 25.45 FT Interm Duration Pfd FPF 24.16 22.77 Flaherty & Crumrine Dyn DFP 25.13 23.78 Flaherty & Crumrine Pfd FFC 19.65 18.61 John Hancock Pfd Income HPI 20.84 20.32 John Hancock Pfd II HPF 20.55 19.64 John Hancock Pfd Inc III HPS 18.34 17.47 JHancock Pr Div PDT 14.44 15.09 LMP Cap & Inco Fd SCD 14.15 13.05 Nuveen Pfd & Incm Opps Fd JPC 10.38 9.87 Nuveen Pfd & Incm Secs Fd JPS 10.00 9.44 Nuveen Preferred & Incm JPI 25.02 23.60 Nuv Tax-Adv Div Gr JTD 17.38 16.64 TCW Strategic Income Fund TSI NA 5.45 Virtus Global Dividend ZTR 11.12 10.81 Convertible Sec's. Funds AdvntClymrFd AVK 17.09 15.31 AllianzGI Conv & Incm NCV 6.32 6.78 52 wk Ttl Ret NA -0.7 -8.6 -8.8 -10.2 -2.5 -8.1 +7.1 +7.2 -7.5 28.2 6.8 -12.2 -5.2 2.1 6.4 -0.6 -12.2 -3.5 9.8 -6.5 -3.4 -4.6 -5.8 -5.4 -5.3 -2.5 -4.4 -4.7 +4.5 -7.8 -4.9 -5.6 -5.7 -4.3 NA -2.8 14.7 6.1 2.9 4.2 2.1 -3.9 1.4 -0.1 1.0 3.7 -0.6 6.5 4.9 2.1 18.7 4.8 0.0 Prem NAV Close /Disc Fund (SYM) AllianzGI Conv & Incm II NCZ 5.67 5.95 AllianzGI Equity & Conv NIE 23.25 21.00 Calamos Conv Hi Inco Fd CHY 11.66 11.98 Calamos CHI 11.05 11.35 World Equity Funds Alpine Tot Dyn Div AOD 10.09 8.98 Calamos Glbl Dyn Inc CHW 9.06 9.22 Cdn Genl Inv CGI 33.41 23.11 China Fund CHN 24.53 21.32 Clough Global Opp Fd GLO NA 10.75 EtnVncTxAdvGblDiv ETG 18.22 16.88 EatonVance TxAdv Opport ETO 24.31 25.41 First Trust Dynamic Eur FDEU 19.06 17.88 Gabelli Glbl Multimedia GGT 8.98 9.36 GDL Fund GDL 11.26 9.36 India Fund IFN 28.71 24.78 Japan Sml Cap JOF 14.04 12.17 Korea Fund KF 46.64 40.76 Mexico Fund MXF 19.03 16.44 Morgan-Stanley Asia-Pac APF 20.77 17.99 MS China a Shr Fd CAF 28.62 23.99 MS Emerging Fund MSF 20.40 17.83 MS India Invest IIF 34.79 30.60 New Germany Fund GF 22.12 19.69 Swiss Helvetia Fund SWZ 13.66 12.28 Templeton Dragon TDF 25.33 21.74 Templeton Emerging EMF 18.01 15.83 Virtus Total Return Fund ZF 11.16 10.95 Voya Infr Indls & Matls IDE NA 15.14 Wells Fargo Gl Div Opp EOD 6.30 5.80 -10.4 7.1 +7.3 10.2 52 wk Ttl Ret +4.9 9.7 -9.7 15.8 +2.7 16.1 +2.7 13.3 -11.0 +1.8 -30.8 -13.1 NA -7.4 +4.5 -6.2 +4.2 -16.9 -13.7 -13.3 -12.6 -13.6 -13.4 -16.2 -12.6 -12.0 -11.0 -10.1 -14.2 -12.1 -1.9 NA -7.9 16.1 27.4 14.6 27.8 14.9 13.4 19.9 12.7 23.6 0.0 10.9 31.2 18.6 2.0 17.8 29.4 18.9 8.7 38.1 7.0 25.5 20.3 6.6 12.1 9.7 Borrowing Benchmarks | WSJ.com/bonds Money Rates April 20, 2018 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. Week —52-WEEK— Week —52-WEEK— Inflation Latest ago High Low Latest ago High Low March index level Chg From (%) Feb. '18March '17 U.S. consumer price index All items Core 0.23 0.32 249.554 256.610 2.4 2.1 International rates Week ago Latest 52-Week High Low 30-year mortgage yields 30 days 4.138 4.071 4.138 3.253 60 days 4.165 4.099 4.165 3.281 Latest 0.00 0.50 0.50 1.50 0.00 0.50 0.50 1.50 0.00 0.50 0.25 1.50 U.S. 1.80 1.77 2.18 0.76 52-Week high low 3.50 3.50 3.50 2.31 2.01 2.31 2.25 2.25 1.7100 1.9000 1.6500 1.6800 1.7100 1.7100 1.9000 1.6500 1.6700 1.7000 1.7100 1.9000 1.7100 1.7000 1.7200 -0.396 -0.359 -0.259 -0.138 -0.420 -0.389 -0.339 -0.263 -0.371 -0.329 -0.271 -0.190 Value Traded -0.366 -0.325 -0.247 -0.121 -0.374 -0.332 -0.279 -0.194 52-Week High Low 2.75 1.759 24.700 2.068 0.791 1.770 101.322 1.971 0.794 Treasury MBS 0.8600 1.0625 0.7000 0.8200 0.8300 Libor DTCC GCF Repo Index Futures 1.89695 1.89550 1.89826 0.98856 2.35923 2.35281 2.36156 1.15622 Treasury Apr Treasury May Treasury Jun 98.180 unch. 5375 1.820 98.190 -0.005 1043 1.810 98.065 unch. 602 1.935 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 March 22, 2018. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective March 22, 2018. 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; Tullett Prebon Information, Ltd. Insider-Trading Spotlight Trading by ‘insiders’ of a corporation, such as a company’s CEO, vice president or director, potentially conveys new information about the prospects of a company. Insiders are required to report large trades to the SEC within two business days. Here’s a look at the biggest individual trades by insiders, based on data received by Thomson Financial on April 20, and year-to-date stock performance of the company KEY: B: beneficial owner of more than 10% of a security class CB: chairman CEO: chief executive officer CFO: chief financial officer CO: chief operating officer D: director DO: director and beneficial owner GC: general counsel H: officer, director and beneficial owner I: indirect transaction filed through a trust, insider spouse, minor child or other O: officer OD: officer and director P: president UT: unknown VP: vice president Excludes pure options transactions Biggest weekly individual trades Based on reports filed with regulators this past week Date(s) Company Symbol Title Insider No. of shrs in Price range ($) $ Value trans (000s) in transaction (000s) Close ($) Ytd (%) Buyers Apr. 12-16 Entercom Communications Apr. 17 J. Field J. Field R OD 415 17 9.59-9.76 10.00 4,005 167 VRML J. Schuler H. Schuler BI BI 2,838 2,108 1.00 1.00 2,838 2,108 ETM 10.05 -6.9 1.23 -36.3 Apr. 17 Apr. 17 Vermillion Apr. 16 JPMorgan Chase JPM M. Hobson DI 18 111.05 1,999 111.47 4.2 Apr. 18 Salesforce.com CRM S. Wojcicki D 6 123.81 743 122.82 20.1 Apr. 13-16 Signet Jewelers SIG V. Drosos CEO 9 38.73-39.24 350 38.65 -31.7 M J. Gennette CEO 10 29.09-29.10 291 29.96 TUP K. Cloninger D. Parker L. Garcia D D O 5 3 2 41.91 41.70 43.18 210 125 100 41.69 -33.5 F. Bracken CEO 35 4.58-4.68 162 4.91 Apr. 12 Macy's Apr. 13 Apr. 12 Apr. 19 Tupperware Brands Apr. 11-13 Lonestar Resources US Apr. 9-13 LONE Century Bancorp Apr. 16-18 RealNetworks Apr. 12-13 18.9 23.7 CNBKA J. Filler B 2 78.72-79.10 124 80.25 2.6 RNWK R. Glaser R. Glaser CEO CEO 36 30 3.23-3.47 3.13-3.20 121 93 3.52 2.9 Apr. 16 AutoZone AZO D. Brooks D x 607.49 Apr. 11 PICO Holdings PICO D. Timian-Palmer D 5 11.70 57 12.15 Apr. 17 PolarityTE COOL . Dyer 3 16.57 50 17.06 -26.5 164.07-168.91 163.82-167.02 DI 98 595.84 -16.2 Apr. 16 Exela Technologies Apr. 16 Square Apr. 16 2U FB XELA Apr. 12 National Instruments Apr. 17-18 Sage Therapeutics Apr. 16 L3 Technologies Apr. 17-18 Pentair CEOI CEOI 435 290 P. Chadha DOI 72,433 166.28 47,739 -5.8 7,000 4.69 32,830 4.65 -9.7 D 400 46.90-47.60 18,761 51.46 48.4 CEO 194 82.70-83.33 16,010 84.22 30.6 HPE M. Whitman D 674 17.45-17.67 11,836 17.29 20.4 NATI J. Truchard D 200 50.32 10,064 50.31 20.9 SAGE K. Starr D 59 168.28-169.25 9,962 148.01 -10.1 LLL M. Strianese CB 40 211.12-212.69 8,371 215.09 8.7 PNR R. Hogan CEO 100 71.00-72.00 70.45 -0.2 TWOU Apr. 18-19 Hewlett Packard Enterprise M. Zuckerberg M. Zuckerberg J. Mckelvey SQ C. Paucek 7,150 OKTA J. Kerrest COI 172 40.69-41.56 6,999 41.97 63.9 Apr. 16-17 IHS Markit INFO L. Uggla CEO 140 48.75-49.04 6,852 49.27 9.1 Apr. 12-13 Apple AAPL L. Maestri CFO 39 174.65-174.90 6,833 165.72 -2.1 Apr. 16-18 TPI Composites TPIC P. Deutch DI 304 22.03-22.26 6,723 22.21 8.6 6,694 58.94 -1.1 Apr. 17 Okta Apr. 17-18 Garmin GRMN M. Kao H 111 60.02-60.10 Apr. 16 PAYC S. Pezold O 58 110.22-111.83 6,450 115.76 44.1 Apr. 16-17 Andeavor ANDV J. Stevens D 50 115.04-116.14 5,789 117.81 3.0 Apr. 12 URBN D. Mccreight P 147 38.54 38.35 9.4 Paycom Software Urban Outfitters 5,678 * Half the transactions were indirect **Two day transaction p - Pink Sheets Buying and selling by sector Based on actual transaction dates in reports received this past week Sector Basic Industries Business services Capital goods Consumer durables Consumer nondurables Consumer services Energy Buying 0 0 0 0 434,834 367,954 0 Selling 123 2,038,455 0 44,250 6,553,778 36,437,466 3,795,684 Sector Buying Finance Health care Industrial Media Technology Transportation Utilities 5.4 7.9 5.9 6.5 5.5 9.7 3.7 3.5 6.4 7.0 5.0 5.0 7.9 6.3 13.2 5.5 5.7 5.3 5.8 5.3 NA 6.9 5.6 7.4 7.3 7.6 7.2 6.2 5.4 7.0 9.7 7.9 6.4 10.9 9.8 8.9 9.2 9.9 10.7 9.8 7.8 10.4 5.3 8.9 4.5 5.5 6.1 8.2 7.8 7.9 8.5 8.5 8.9 7.2 7.8 7.1 5.9 9.1 7.0 9.2 Prem12 Mo NAV Close /Disc Yld Duff & Phelps Utl & Cp Bd DUC 9.26 8.46 EtnVncLtdFd EVV 14.73 12.93 Franklin Ltd Duration IT FTF 11.92 11.12 GuggenheimTaxableMuni GBAB 22.59 21.25 Invesco High Incm 2023 IHIT 9.99 9.80 KKR Income Opps Fund KIO NA 15.84 MFS Charter MCR 8.90 8.08 MFS Multimkt MMT 6.34 5.72 Nuveen Build Am Bd Fd NBB 21.54 20.22 PIMCO Corporate & Incm PTY NA 17.03 PIMCO Corporate & Incm PCN NA 16.68 PIMCO HiInco PHK NA 7.69 PIMCO Inco Str Fd PFL NA 11.71 PIMCO Incm Strategy Fd II PFN NA 10.36 Putnam Mas Inco PIM 5.08 4.77 Putnam Premier Income Tr PPT 5.66 5.28 Wells Fargo Multi-Sector ERC 14.06 13.02 World Income Funds Abeerden Asia-Pacific FAX 5.20 4.64 Brandywine Global Incm BWG NA 12.71 Etn Vnc Short Dur Fd EVG 15.07 13.35 MS EmMktDomDebt EDD 9.04 7.67 PIMCO Dynamic Credit PCI NA 22.97 PIMCODynamicIncomeFund PDI NA 30.93 PIMCO Income Opportunity PKO NA 27.00 PIMCO Strat Income Fund RCS NA 9.27 Templeton Emerging TEI 12.46 11.29 Templeton Global GIM 7.31 6.41 Wstrn Asset Emerg Mkts EMD NA 14.28 Wstrn Asset Gl Def Opp Fd GDO NA 16.65 National Muni Bond Funds AllianceBrnstn NtlMun AFB 14.27 12.49 Blackrock Invest BKN 15.33 13.60 BlackRockMun2030Target BTT 23.47 21.26 BlackRock Municipal Trust BFK 14.03 12.77 BlackRockMuni BLE 14.59 13.37 BlackRockMuni Tr BYM 14.68 13.06 BlkRk MuniAssets Fd MUA 14.03 13.22 BlkRk Munienhanced MEN 11.52 10.48 BlkRk MuniHldgs Inv MFL 14.14 12.79 BlkRk MuniHldgs Qlty II MUE 13.55 12.20 BlkRk MuniVest MVF 9.38 8.68 BlkRk MuniVest II MVT 14.79 14.08 BlkRk MuniYield MYD 14.42 13.15 BlkRk MuniYld Quality MQY 15.30 13.76 BlkRk MuniYld Qlty II MQT 13.44 12.01 BlRkMunyldQltyIII MYI 13.93 12.47 Deutsche Mun Income Tr KTF 12.10 11.07 Dreyfus Mun Bd Infr Fd DMB 13.93 12.46 Dreyfus Strat Muni Bond DSM 8.15 7.53 Dreyfus Strategic Munis LEO 8.36 7.65 Eaton Vance Mun Bd Fd EIM 13.17 11.85 Eaton Vance Mun Income EVN 12.91 11.58 EV National Municipal Opp EOT 21.20 20.39 Invesco Adv Mun Incm II VKI 11.71 10.49 Invesco Mun Incm Opps Tr OIA 7.40 7.48 Invesco Mun Opportunity VMO 13.08 11.66 Invesco Municipal Trust VKQ 13.06 11.72 Invesco Qlty Mun Inco IQI 13.16 11.82 Invesco Inv Grade Muni VGM 13.52 12.14 Invesco Value Mun Incm Tr IIM 15.73 14.31 MainStayMacDefinedMuni MMD 19.91 19.00 MFS Munl Inco MFM 7.23 6.48 NuveenAMT-FreeMunValue NUW 16.31 15.70 Nuveen AMT-Free Quality NEA 14.62 12.84 -8.6 6.4 -12.2 7.4 -6.7 12.3 -5.9 6.9 -1.9 6.0 NA 9.7 -9.2 9.1 -9.8 9.2 -6.1 5.9 NA 9.2 NA 8.1 NA 12.7 NA 9.2 NA 9.2 -6.1 6.6 -6.7 5.9 -7.4 9.8 -10.8 NA -11.4 -15.2 NA NA NA NA -9.4 -12.3 NA NA 8.8 7.9 6.7 7.8 8.6 8.5 8.7 9.3 6.8 4.2 8.2 8.1 -12.5 -11.3 -9.4 -9.0 -8.4 -11.0 -5.8 -9.0 -9.5 -10.0 -7.5 -4.8 -8.8 -10.1 -10.6 -10.5 -8.5 -10.6 -7.6 -8.5 -10.0 -10.3 -3.8 -10.4 +1.1 -10.9 -10.3 -10.2 -10.2 -9.0 -4.6 -10.4 -3.8 -12.2 4.8 5.3 4.1 6.0 6.2 5.5 5.0 6.1 6.4 6.1 6.1 6.0 6.1 5.9 5.7 6.2 6.2 5.1 6.3 6.4 5.2 5.5 4.9 6.1 5.5 6.0 6.1 5.5 6.2 5.1 5.7 5.8 4.4 5.5 2,349,699 5,002,639 1,030 167,130 944,261 6,344 21,565 A Week in the Life of the DJIA A look at how the Dow Jones Industrial Average component stocks did in the past week and how much each moved the index. The DJIA gained 102.80 points, or 0.42%, on the week. A $1 change in the price of any DJIA stock = 6.89-point change in the average. To date, a $1,000 investment on Dec. 31 in each current DJIA stock component would have returned $29,777, or a loss of 0.74%, on the $30,000 investment, including reinvested dividends. The Week’s Action Pct Stock price Point chg chg (%) change in average* Company Symbol Close 8.34 7.78 4.81 2.90 2.86 7.76 1.05 10.78 1.66 3.45 53.43 7.23 74.23 11.43 23.75 American Express General Electric UnitedHealth Group Merck Visa AXP $100.79 GE 14.54 UNH 235.06 MRK 58.83 V 124.20 $1,022 840 1,070 1,055 2.85 2.53 2.44 2.06 2.01 9.39 1.09 4.21 1.92 3.02 64.65 7.51 28.99 13.22 20.79 Boeing Cisco Systems Home Depot Microsoft Caterpillar BA 338.67 CSCO 44.09 HD 177.01 MSFT 95.00 CAT 153.25 1,154 1,169 939 1,116 1.99 1.49 1.12 1.06 1.03 2.39 1.16 0.96 1.17 2.23 16.46 7.99 6.61 8.06 15.35 Chevron Exxon Mobil WalMart JPMorgan Chase 3M CVX 122.31 XOM 79.00 WMT 86.98 JPM 111.47 MMM 217.75 987 954 886 1,053 0.85 0.50 0.40 0.30 –0.11 0.31 0.24 0.55 0.37 –0.11 2.13 1.65 3.79 2.55 –0.76 Pfizer Verizon Travelers United Technologies Walt Disney PFE 36.63 VZ 47.90 TRV 136.84 UTX 123.08 DIS 100.24 1,021 927 1,014 970 –0.20 –0.64 –1.55 –1.72 –1.73 –0.13 –0.33 –3.96 –1.16 –0.77 –0.90 –2.27 –27.27 –7.99 –5.30 DowDuPont Intel Goldman Sachs Nike Coca-Cola DWDP 66.04 INTC 51.53 GS 251.96 NKE 66.09 KO 43.74 932 1,124 992 1,060 –1.83 –2.96 –3.03 –3.96 –5.16 –9.01 –5.83 –4.57 –7.54 –11.81 –20.38 –27.27 –62.04 –31.47 –81.32 McDonald’s Johnson & Johnson Apple Procter & Gamble IBM MCD JNJ AAPL PG IBM -5.1 Sellers Apr. 16-18 Facebook Apr. 12-13 U.S. Mortgage Bond Funds BlackRock Income Trust BKT 6.37 5.77 -9.4 Nuveen Mtg Opp Term Fd JLS 24.26 23.60 -2.7 Investment Grade Bond Funds Blackrock Core Bond Tr BHK 14.19 12.81 -9.7 BlkRk Credit Alloc Incm BTZ 14.27 12.54 -12.1 John Hancock Income Secs JHS 14.70 13.82 -6.0 MFS Inc Tr MIN 4.20 3.87 -7.9 WstAstClymr InfLnkd Fd WIW 12.70 11.34 -10.7 WstAssetClymr InflLnk Sec WIA 13.01 11.46 -11.9 Loan Participation Funds Apollo Sr Fltg Rate Fd AFT 17.87 16.72 -6.4 BlkRk Debt Strat Fd DSU 12.67 11.45 -9.6 BlackRock FR Incm Strat FRA 14.99 14.46 -3.5 Blkrk FltRt InTr BGT 14.45 13.62 -5.7 BlackstoneGSO Strat Cred BGB NA 15.84 NA Blackstone GSO Sr Float BSL NA 17.97 NA Eagle Point Credit ECC NA 18.39 NA Eaton Vance FR Incm Tr EFT 15.63 15.07 -3.6 EatonVnc SrFltRate EFR 15.30 14.82 -3.1 Eaton Vance Sr Incm Tr EVF 7.22 6.78 -6.1 First Trust Sr FR Fd II FCT 14.11 13.20 -6.4 FT Sr Floating Rate 2022 FIV 9.70 9.41 -3.0 Highland FR Opps Fd HFRO 15.15 NA NA Invesco Credit Opps Fund VTA 13.20 11.73 -11.1 Invesco Senior Income Tr VVR 4.93 4.41 -10.5 Nuveen Credit Strt Inc Fd JQC 9.08 7.98 -12.1 NuvFloatRteInco Fd JFR 11.51 10.84 -5.8 Nuv Float Rte Opp Fd JRO 11.42 10.77 -5.7 Nuveen Senior Income Fund NSL 6.85 6.54 -4.5 Pioneer Floating Rate Tr PHD 12.40 11.54 -6.9 Voya Prime Rate Trust PPR 5.68 5.11 -10.0 High Yield Bond Funds AllianceBernstein Glbl AWF 13.56 11.80 -13.0 Barings Glbl Short Dur HY BGH 20.55 18.62 -9.4 BlackRock Corp Hi Yd Fd HYT 12.03 10.60 -11.9 BlackRockDurInco Tr BLW 16.83 14.99 -10.9 Brookfield Real Assets RA 24.20 22.15 -8.5 Credit Suisse High Yld DHY 2.71 2.64 -2.6 DoubleLine Incm Solutions DSL NA 20.17 NA Dreyfus Hi Yd Strat Fd DHF 3.45 3.17 -8.1 Fst Tr Hi Inc Lg/Shrt Fd FSD 17.37 15.05 -13.4 Guggenheim Strat Opps Fd GOF 19.13 20.30 +6.1 Ivy High Income Opps Fund IVH 16.03 14.16 -11.7 Neuberger Berman HYS NHS NA 11.03 NA NexPoint Strat Opps Fund NHF 26.11 23.17 -11.3 Nuveen Credit Opps 2022 JCO 9.85 9.50 -3.6 Nuveen Gl Hi Incm Fd JGH 18.13 16.12 -11.1 Nuveen High Incm Dec18 JHA 9.97 9.83 -1.4 Nuveen High Incm Dec19 JHD 10.06 9.84 -2.2 Nuveen Hi Incm Nov 2021 JHB 10.00 9.51 -4.9 Pioneer High Income Trust PHT 10.60 9.40 -11.3 Prud Gl Shrt Dur Hi Yd GHY 16.20 13.80 -14.8 Prudentl Sh Dur Hi Yd Fd ISD 16.36 14.08 -13.9 Wells Fargo Incm Opps Fd EAD 9.05 7.95 -12.2 Wstrn Asset Glbl Hi Inco EHI NA 9.43 NA Wstrn Asset High Inco II HIX NA 6.57 NA Wstrn Asset Opp Fd HIO 5.47 4.78 -12.6 West Asst HY Def Opp Fd HYI NA 14.53 NA Other Domestic Taxable Bond Funds Ares Dynamic Credit Alloc ARDC NA 16.26 NA Barings Corp Investors MCI NA 15.55 NA BlackRock Multi-Sector IT BIT 19.04 16.76 -12.0 BlackRock Taxable Mun Bd BBN 22.99 22.06 -4.0 Doubleline Oppor Credit DBL NA 20.88 NA Fund (SYM) Open Implied Settle Change Interest Rate 1.01 1.50 Federal funds Effective rate High Low Bid Offer -0.402 -0.365 -0.324 -0.246 DTCC GCF Repo Index Discount 2.25 -0.372 -0.328 -0.271 -0.189 Latest Commercial paper (AA financial) One month Three month U.S. government rates One month Three month Six month One year Call money 90 days Overnight repurchase Week ago -0.402 -0.365 -0.322 -0.245 Euro interbank offered rate (Euribor) Other short-term rates Policy Rates 0.00 0.50 0.50 1.50 One month Three month Six month One year Secondary market 4.75 4.75 4.75 4.00 3.45 3.45 3.45 2.70 1.475 1.475 1.475 1.475 Euro zone Switzerland Britain Australia Euro Libor Fannie Mae Prime rates U.S. Canada Japan 1.630 1.620 1.720 0.695 1.760 1.715 1.780 0.820 1.945 1.880 1.950 0.945 4 weeks 13 weeks 26 weeks 2.51125 2.49000 2.51125 1.39906 2.76031 2.73094 2.76031 1.69511 Six month One year Treasury bill auction Prem12 Mo NAV Close /Disc Yld Fund (SYM) Selling 16,096,665 25,670,989 31,291,605 13,890,110 108,826,362 2,445,800 825,981 Sources: Thomson Financial; WSJ Market Data Group $1,000 Invested(year-end '17) $1,000 1,091 982 931 932 962 928 912 983 817 158.77 126.66 165.72 73.80 144.90 954 *Based on Composite price. DJIA is calculated on primary-market price. Source: WSJ Market Data Group; FactSet. Fund (SYM) Prem12 Mo NAV Close /Disc Yld Nuveen AMT-Free Mun NVG 15.97 14.49 Nuveen Mun Credit Incm Fd NZF 15.50 14.02 Nuveen Enhncd Mun Val Fd NEV 14.53 13.30 Nuveen Intermed Dur Mun NID 13.48 12.34 NuveenMuniIncoOpp Fd NMZ 13.17 12.39 Nuveen Muni Value Fund NUV 10.04 9.48 Nuveen Qual Mun Incm Fd NAD 14.91 13.07 Nuveen Sel TF NXQ 14.48 13.45 PIMCO MuniFd PMF 12.46 12.48 Pimco Muni Inc II PML 11.70 12.71 PIMCO Muni Inc III PMX 10.68 11.33 Pioneer Mun Hi Inc Adv Tr MAV 11.53 10.71 Pioneer Mun Hi Incm Tr MHI 12.53 11.24 Putnam Tr PMM 7.83 7.08 PutnamMuniOpportunities PMO 13.00 11.61 Wstrn Asset Mngd Muni MMU NA 12.85 WesternAssetMunTrFund MTT 20.69 21.55 Single State Muni Bond BlackRock CA Municipal Tr BFZ 14.75 12.94 BlkRk MuniHldgs CA Qlty MUC 14.96 13.10 BlkRk MunHl NJ Qlty MUJ 15.16 13.19 BlRk MuHldg NY Qlty MHN 14.29 12.36 BlkRk MuniYld CA Fd MYC 15.01 13.19 BlkRk MuniYld CA Quality MCA 15.18 13.31 BlkRk MuniYld MI Qlty MIY 14.99 13.04 BlRk Muyld NY Qlty MYN 13.70 11.87 Eaton Vance CA Mun Bd EVM 11.89 10.25 Invesco CA Value Mun Incm VCV 12.94 11.65 Invesco PA Value Mun Incm VPV 13.58 11.68 Invesco Inv Grade NY Muni VTN 14.06 12.72 Nuveen CA AMT-Free Qual NKX 15.21 13.42 Nuveen CA Muni Value NCA 10.21 9.30 Nuveen CA Quality Muni NAC 15.14 13.33 Nuveen MD Qual Muni NMY 14.13 12.00 Nuveen MI Qual Muni NUM 14.89 12.52 Nuveen NJ Qual Muni NXJ 15.33 12.99 Nuveen NY AMT-Free NRK 13.95 11.96 Nuveen NY Qual Muni NAN 14.55 12.44 Nuveen OH Qual Muni NUO 16.08 13.66 Nuveen PA Qual Muni NQP 14.72 12.41 Nuveen VA Qual Muni NPV 14.03 12.18 PIMCO California Muni PCQ 13.56 14.74 PIMCO California Mun II PCK 8.33 8.10 Fund (SYM) -9.3 -9.5 -8.5 -8.5 -5.9 -5.6 -12.3 -7.1 +0.2 +8.6 +6.1 -7.1 -10.3 -9.6 -10.7 NA +4.2 6.0 6.1 6.0 4.9 6.3 4.0 5.5 3.7 5.7 6.1 5.8 5.6 5.4 5.5 5.4 5.8 4.6 -12.3 -12.4 -13.0 -13.5 -12.1 -12.3 -13.0 -13.4 -13.8 -10.0 -14.0 -9.5 -11.8 -8.9 -12.0 -15.1 -15.9 -15.3 -14.3 -14.5 -15.1 -15.7 -13.2 +8.7 -2.8 5.3 5.3 5.8 5.3 5.4 5.5 5.5 5.1 5.5 5.4 5.4 5.4 5.6 4.2 5.6 4.9 4.8 5.3 5.0 5.4 5.1 5.4 4.4 6.2 6.4 Prem NAV Close /Disc 52 wk Ttl Ret General Equity Funds Specialized Equity Funds Griffin Inst Access RE:L NA NA NA NS NexPointRlEstStrat;A 19.72 NA NA 0.8 NexPointRlEstStrat;C 19.78 NA NA 0.6 NexPointRlEstStrat;Z 19.80 NA NA 1.6 NorthStar RE Cap Inc:Adv NA NA NA NS PREDEX;T 26.06 NA NA NS PREDEX;W 26.06 NA NA NS Resource RE Div Inc:L NA NA NA NS SharesPost 100;A 27.69 NA NA 9.4 SharesPost 100:I 27.71 NA NA NS Tot Inc+ RE:A 29.62 NA NA 7.3 Tot Inc+ RE:C 28.75 NA NA 6.5 Tot Inc+ RE:I 29.98 NA NA 7.6 Tot Inc+ RE:L 29.55 NA NA NS USQ Core Real Estate:I USQIX 25.15 NA NA NS USQ Core Real Estate:IS USQSX 25.15 NA NA NS Versus Cap MMgr RE Inc:I 27.45 NA NA NE Versus Capital Real Asst VCRRX 25.29 NA NA NS Wildermuth Endwmnt Str 13.26 NA NA 12.1 Wildermuth Endwmnt S:C 13.04 NA NA 11.2 Wildermuth Endwmnt S:I 13.34 NA NA NS Income & Preferred Stock Funds MultiStrat Gro & Inc:A 14.45 NA NA -2.3 MultiStrat Gro & Inc:C 14.10 NA NA -3.0 MultiStrat Gro & Inc:I 14.65 NA NA -2.1 MultiStrat Gro & Inc:L 14.21 NA NA -2.8 The Relative Value:CIA VFLEX 24.85 NA NA NS Convertible Sec's. Funds Calamos Dyn Conv & Incm CCD 20.75 20.33 -2.0 13.1 World Equity Funds BMO LGM Front ME 11.73 NA NA 22.8 Calamos Global Tot Ret Fd CGO 13.24 14.10 +6.5 18.4 Prem12 Mo Fund (SYM) NAV Close /Disc Yld U.S. Mortgage Bond Funds Vertical Capital Inc:A 12.27 NA NA 3.2 Vertical Capital Inc:C 12.33 NA NA NS Vertical Capital Inc:I 12.36 NA NA NS Vertical Capital Inc:L 12.36 NA NA NS Loan Participation Funds 504 Fund 9.62 NA NA 4.0 Angel Oak Strategic Crdt ASCIX 25.16 NA NA NS Blackstone/GSO FR EI I 25.06 NA NA NS FedProj&TrFinanceTendr 10.02 NA NA 3.1 FS Global Crdt Opptys D NA NA NA 5.0 Invesco Sr Loan A 6.72 NA NA 4.0 Invesco Sr Loan C 6.74 NA NA 3.2 Invesco Sr Loan IB 6.73 NA NA 4.2 Invesco Sr Loan IC 6.73 NA NA 4.1 Invesco Sr Loan Y 6.72 NA NA 4.2 RiverNorth MP Lending RMPLX NA NA NA 9.2 Sierra Total Return:T SRNTX 24.91 NA NA NS Voya Senior Income:A 12.59 NA NA 5.0 Voya Senior Income:C 12.57 NA NA 4.5 Voya Senior Income:I 12.56 NA NA 5.2 Voya Senior Income:W 12.60 NA NA 5.2 High Yield Bond Funds Griffin Inst Access Cd:A NA NA NA NS Griffin Inst Access Cd:C NA NA NA NS Griffin Inst Access Cd:F NA NA NA NS Griffin Inst Access Cd:I NA NA NA NS Griffin Inst Access Cd:L NA NA NA NS PIMCO Flexible Cr I;Inst 10.51 NA NA 6.3 PionrILSInterval 9.57 NA NA 1.4 WA Middle Mkt Dbt NA NA NA 10.8 WA Middle Mkt Inc WMF NA NA NA 10.7 Other Domestic Taxable Bond Funds BlackRock Mlt-Sctr Oppty 99.96 NA NA NS Capstone Church Capital 11.66 NA NA 3.4 CION Ares Dvsfd Crdt;A NA NA NA 5.4 CION Ares Dvsfd Crdt;C NA NA NA NS CION Ares Dvsfd Crdt;I NA NA NA NS CION Ares Dvsfd Crdt;L NA NA NA NS CNR Select Strategies 9.65 NA NA NS GL Beyond Income 2.70 NA NA NE Palmer Square Opp Income 19.42 NA NA 4.6 Resource Credit Inc:A 11.06 NA NA 6.4 Resource Credit Inc:C 11.18 NA NA 5.6 Resource Credit Inc:I 11.09 NA NA 6.7 Resource Credit Inc:L 11.06 NA NA NS Resource Credit Inc:W 11.06 NA NA 6.4 Cash Prices | WSJ.com/commodities Friday, April 20, 2018 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. Friday 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 0.8184 0.9534 2.720 2.660 2.750 2.080 1.800 1.760 2.600 61.450 12.450 Metals Gold, per troy oz 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. Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price Friday (U.S.$ equivalent) Coins,wholesale $1,000 face-a Energy Other metals *17.1950 12670 LBMA Platinum Price PM *943.0 Platinum,Engelhard industrial 936.0 Platinum,Engelhard fabricated 1036.0 Palladium,Engelhard industrial 1037.0 Palladium,Engelhard fabricated 1137.0 Aluminum, LME, $ per metric ton *2602.5 Copper,Comex spot 3.1315 Iron Ore, 62% Fe CFR China-s 66.9 Shredded Scrap, US Midwest-s,m 381 Steel, HRC USA, FOB Midwest Mill-s 876 Fibers and Textiles 1342.93 1443.65 1336.75 1483.79 *1347.90 *1348.60 1389.54 1402.91 1402.91 1618.94 1312.65 1402.91 17.1800 20.6160 17.2020 21.5030 *£12.0900 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 0.5925 0.8373 *91.70 64.000 n.a. Grains and Feeds 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, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u SoybeanMeal,Cent IL,rail,ton48%-u Soybeans,No.1 yllw IL-bp,u n.a. 103 3.4750 123.7 518.3 258 102 295 2.7250 25.75 7.9813 379.10 9.9350 Friday 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 7.6250 4.6300 4.8275 5.7913 Food 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 190.67 178.68 1.0875 2.3150 150.00 160.25 80.50 n.a. 1.1606 1.3653 1.2650 15.40 n.a. 71.78 n.a. 0.8624 120.98 165.63 Fats and Oils 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 28.9800 0.2200 n.a. 0.2965 0.2475 0.2950 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; M=monthly; 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 4/19 Source: WSJ Market Data Group . THE WALL STREET JOURNAL. Monday, April 23, 2018 | B9 MARKETS Russia Needs to Find New Buyer for Aluminum Supply ESSAM AL-SUDANI/REUTERS BY DAVID HODARI Demand has remained strong even as oil and gasoline prices have been rising. The Rumaila oil field in Basra, Iraq. Oil Prices Flirt With $70 Current range could benefit global economy, but further rise threatens growth Oil prices have climbed more than 60% since last summer’s lows, and U.S. producers are exporting more crude than ever. For now, some investors say oil prices are lodged in a range that could benefit the U.S. economy by bolstering the recovering energy industry without curtailing demand. Yet even with the economy chugging along, rising oil prices dredge up fresh concerns. If crude continues to move higher, it could begin to stifle economic growth. Higher consumer prices for gasoline and other energy products act like a tax, while pushing inflation higher and increasing pressure on the Federal Reserve to raise interest rates more aggressively. That, in turn, could slow growth and weigh on the stock market, which has already been knocked around by trade tensions, rising bond yields and recent bouts of volatility. Inflation concerns pushed the yield on the 10year Treasury note to the highest since 2014 on Friday, while major U.S. stock indexes closed lower, wiping out much of the recent gains after a string of upbeat earnings. BY STEPHANIE YANG AND ALISON SIDER Oil prices are headed toward $70 a barrel, a weight on the U.S. economy that is bearable for now but could pose trouble if prices keep climbing. The last time U.S. oil prices were at $70, in 2014, they were in the middle of a steep collapse. Many investors believed then that prices would soon stabilize, or even recover. Instead, they continued to plunge, eventually hitting a bottom in 2016 at $26. That tumble caused acute pain for oil producers, whose troubles rippled out into stocks, bonds and the broader economy. This year’s rally is a sign of how much has changed in a few years. Global growth has picked up, while U.S. unemployment has fallen. A gambit by the world’s largest oil producers to cut production has been succeeding in eliminating a massive glut, with help from soaring demand. “Nothing can suck cash flow out of the economy faster than rising oil prices,” said Joseph LaVorgna, chief economist for the Americas at Natixis. When oil prices fell below $40 a barrel, financial distress from the energy sector started to spread, said Jason Thomas, director of research at Carlyle Group. But if oil prices continue rising, they could boost infla- ‘Nothing can suck cash flow out of the economy faster than rising oil prices.’ tion expectations, which would raise bond yields and the cost of financing. “We’re starting to move out of that Goldilocks zone,” Mr. Thomas said. “Certainly $10 to $15 a barrel more there starts to be this drag.” President Donald Trump tweeted Friday that oil prices are “artificially Very High!”—a sentiment that would have been unthinkable even a few months ago. Oil prices tum- bled after his comment but recovered to settle at $68.38 a barrel Friday. A major force behind rising oil prices has been a policy reversal from the Organization of the Petroleum Exporting Countries. In 2014, the group opted to continue pumping oil at high rates in an effort to protect its market share against encroaching U.S. shale producers. Two years later, OPEC reversed course, enlisting other major producers such as Russia in a coordinated production cut that has helped to nearly eliminate a supply overhang. “The conversation is changing,” said Antoine Halff, senior research scholar at Columbia University’s Center on Global Energy Policy. “A year ago the conversation was ‘lower for longer’ and the ‘age of abundance’” for oil, he said. Now, “the idea of cheap oil forever is being challenged.” A booming global economy has also been key, keeping demand high as excess oil and fuel gets soaked up by consumers around the world. The first quarter was likely the strongest for global oil demand growth, year over year, since the fourth quarter of 2010, Goldman Sachs said. Aluminum from United Co. Rusal, the recently sanctioned Russian mining company, is looking for a new home. But nobody knows where that is. Rusal produced 3.7 million tons of aluminum last year. But U.S. sanctions mean that almost no Western buyer will touch the metal not already on exchanges before Rusal-branded products were banned, and neither will Washington’s allies, like Japan, analysts say. China has more than enough of its own aluminum. Other countries unlikely to follow U.S. sanctions against Rusal aren’t big enough to mop up its metal. That leaves Russia, which has bailed out the world’s second-largest aluminum producer before, as the most likely buyer. But that also threatens a stockpile of unused metal hanging over the market. “It looks like that unsold aluminum is piling up in [warehouses], and at this juncture it doesn’t seem likely to find any buyers,” said Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas. On April 6, the U.S. sanctioned Oleg Deripaska, who controls Rusal, and other Russian individuals and entities. Following the sanctions, major commodities firms, including Glencore PLC and Rio Tinto PLC have invoked force majeure, defaulting trading contracts with the mining company, while traders elsewhere are scrambling to plug the gap left by the Russian company—which is responsible for 13% of the world’s non-Chinese supply. The London Metal Exchange banned deliveries of Rusal metal to its warehouses. All this has prompted a flurry of activity. LME inventories leapt to more than 150,000 tons as nonrecycled aluminum flooded into its warehouses between April 6 and April 17 while traders withdrew metal not linked to Currencies U.S.-dollar foreign-exchange rates in late New York trading Country/currency Bank Trading Desks Are on a Roll BY ALLISON PRANG three separate institutions: Goldman Sachs Group, Bank of America Corp. and Citigroup Inc. The same metric at Morgan Stanley rose 27% and at JPMorgan Chase & Co. rose 26%. In fixed-income divisions, which are typically larger than equities businesses, trading performance was mixed. At Goldman Sachs, fixed income, currencies and commodities trading revenue rose 23% off a disappointing 2017 first quarter result. At Morgan Stanley, fixed-income trading climbed 9% and at JPMorgan, it rose 8%. Trading fell 13% at Bank of America and 7% at Citigroup. Trading desks at the largest banks have started off the year on a high note. The five U.S. banks with large trading desks finished reporting their first-quarter financial results last week, and one of the star performers was equities desks. Those units— where individual stocks, indexes and exchange-traded funds are bought and sold—saw doubledigit percentage revenue increases, helped by volatility in the markets so far this year. In a numerical stroke of serendipity for the banks, equities trading revenue rose 38% at Winning With Trades Increased market volatility helped boost large U.S. banks' trading desks in the ﬁrst quarter. Percent change in 1Q revenue from a year ago Equities 40% Fixed income 30 20 10 0 –10 –20 JPMorgan Chase Citigroup Bank of America Morgan Stanley Goldman Sachs THE WALL STREET JOURNAL. Source: company ﬁlings Rusal to plug the supply gap. “The U.S. is completely ruled out, European multinationals won’t touch it and neither will the banks who’d otherwise finance the material,” said Oliver Nugent, commodities strategist at ING. Typically, 45% to 55% of Rusal’s aluminum goes to European customers and about 15% to 20% goes to the U.S., according to Mark Bodner, a former sales director at Rusal. Much of the rest goes to Japan and South Korea, two U.S. allies, he said. China, so far a minor customer, is seen as one major economy that would buy the metal despite U.S. sanctions. Bloomberg News reported that Rusal officials met Chinese companies and traders this past week to discuss the possibility of buying alumina and selling aluminum in the Asian country. Rusal declined to comment on that report. “The Company is analyzing the latest situation with its legal advisers,” it said in an emailed statement. One factor preventing Chinese traders from simply buying Rusal aluminum cheaply and selling their own product abroad is that Beijing charges punitive tariffs on both the import and export of the industrial metal. China also may not want to antagonize the U.S. amid currently fraught trade relations. “It’s not that easy for China to take that material,” given that markets are still “tied up with trade-war fears,” said Xiao Fu, head of commodities research at BOCI Global Commodities. ING’s Mr. Nugent said Turkey and Thailand are potential customers, but combined they only take 1.5 million tons of aluminum. Russia has already bailed Rusal out once. At the height of the financial crisis, Rusal received a $4.5 billion loan from state-owned Vneshekonombank whose chairman at the time was Vladimir Putin. —Biman Mukherji contributed to this article. in US$ US$vs, YTDchg Fri per US$ (%) Country/currency Americas Europe Argentina peso .0495 20.1905 8.5 Brazil real .2930 3.4126 3.0 Canada dollar .7832 1.2768 1.6 Chile peso .001677 596.30 –3.1 Ecuador US dollar 1 1 unch Mexico peso .0540 18.5310 –5.8 Uruguay peso .03535 28.2900 –1.8 Venezuela b. fuerte .00001759425.0001 574507.1 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 Asia-Pacific Australian dollar .7671 1.3036 China yuan .1588 6.2965 Hong Kong dollar .1275 7.8436 India rupee .01510 66.207 Indonesia rupiah .0000721 13870 Japan yen .009289 107.65 Kazakhstan tenge .003063 326.44 Macau pataca .1237 8.0824 Malaysia ringgit .2565 3.8985 New Zealand dollar .7209 1.3872 Pakistan rupee .00864 115.775 Philippines peso .0191 52.227 Singapore dollar .7596 1.3164 South Korea won .0009336 1071.10 Sri Lanka rupee .0063963 156.34 Taiwan dollar .03394 29.468 Thailand baht .03191 31.340 Vietnam dong .00004391 22772 1.8 –3.2 0.4 3.7 2.9 –4.5 –1.9 0.5 –4.0 –1.6 4.6 4.5 –1.6 0.4 1.9 –0.7 –3.8 0.3 in US$ US$vs, YTDchg Fri per US$ (%) .04846 20.638 .1650 6.0607 1.2289 .8138 .003953 252.96 .009971 100.29 .1278 7.8236 .2945 3.3960 .01629 61.386 .1184 8.4454 1.0256 .9750 .2453 4.0766 .0381 26.2324 1.3999 .7143 –3.0 –2.3 –2.3 –2.3 –3.1 –4.7 –2.4 6.4 3.2 0.1 7.4 –6.8 –3.5 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6522 .3770 –0.02 .0565 17.7123 –0.3 .2833 3.5300 1.5 3.3320 .3001 –0.4 2.5974 .3850 0.01 .2746 3.642 –0.2 .2666 3.7503 ... .0826 12.1022 –2.1 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 84.36 0.38 0.46 –1.88 Sources: Tullett Prebon, WSJ Market Data Group THE TICKER | Market events coming this week Earnings expected* Existing-home sales Feb., previous 5.54 mil. March, expected 5.55 mil. Earnings expected* Estimate/Year Ago($) Alphabet 9.28/7.73 Ameriprise 3.46/2.70 FirstEnergy 0.63/0.78 Halliburton 0.40/0.04 Kimberly-Clark 1.69/1.57 TD Ameritrade 0.74/0.40 Tuesday Short-selling reports Ratio, days of trading volume of current position, at March 30 NYSE Nasdaq 4.4 3.5 Consumer confidence March, previous 127.7 April, expected 126.0 New-home sales Feb., previous 618,000 March, expected 628,000 Estimate/Year Ago($) 3M 2.50/2.16 Amgen 3.22/3.15 Coca-Cola 0.46/0.43 Lockheed Martin 3.39/2.61 Texas Instruments 1.11/0.97 Verizon 1.11/0.95 Wednesday 0.54/0.44 1.01/0.86 PayPal Visa Thursday Initial jobless claims Previous 232,000 Expected 228,000 EIA report: natural gas Previous change in stocks in billions of cubic feet down 36 Mort. bankers indexes Purch., previous up 6% Refinan., prev. up 4% Durable-goods orders Feb., previous up 3.0% March, expected up 1.6% EIA status report Earnings expected* Previous change in stocks in millions of barrels Crude oil Gasoline Distillates down 1.1 down 3 down 3.1 Earnings expected* Estimate/Year Ago($) AT&T Boeing Comcast Facebook 0.87/0.74 2.57/2.01 0.59/0.53 1.35/1.04 Estimate/Year Ago($) AbbVie Altria Group Amazon.com Intel Microsoft PepsiCo Friday GDP deflator 1.80/1.28 0.91/0.73 1.24/1.48 0.71/0.66 0.85/0.73 0.93/0.94 4th qtr., final up 2.3% 1st qtr. adv. est. up 2.2% Chicago PMI March, previous April, expected 57.4 55.0 Employment cost index 4th qtr., previous up 0.6% 1st qtr., expected up 0.7% U.Mich. consumer index April, prelim. 97.8 April, final 97.5 Gross domestic product: Percentage change, annual rate 4th qtr., final up 2.9% 1st qtr. adv. est. up 1.8% Earnings expected* SHIZUO KAMBAYASHI/ASSOCIATED PRESS Monday Estimate/Year Ago($) Charter Comm. 0.47/0.57 Chevron 1.48/1.09 Colgate-Palmolive 0.73/0.67 Exxon Mobil 1.12/0.95 Phillips 66 0.89/0.56 Simon Property 1.53/1.53 * FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES) ADJUSTED FOR STOCK SPLIT NOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF ECONOMISTS Coca-Cola is expected to log earnings of 46 cents a share Tuesday. PepsiCo posts results Thursday. . B10 | Monday, April 23, 2018 THE WALL STREET JOURNAL. MARKETS Earnings Are Strong, but Rewards Are Scarce 60% Textron Shares slumped for more than half of the 69 companies in the S&P 500 that have topped ﬁrst-quarter earnings expectations. Baker Hughes Shares declined for three of the ﬁve stocks with the biggest positive surprises. Nike 30 Philip Morris shares dropped 18% despite earnings that beat expectations ABOVE EXPECTATIONS EARNINGS SURPRISE W.W. Grainger Carnival Goldman Sachs FedEx 0 Intuitive Surgical CSX Morgan Stanley Oracle BELOW EXPECTATIONS Earnings season is in full swing, with 17% of the companies in the S&P 500 having reported quarterly results through Friday and the majority of the ﬁrms in the index on deck over the next two weeks. In all, the companies are expected to report an 18% jump in earnings for the quarter, according to FactSet, which would mark the highest growth rate since the ﬁrst quarter of 2011. Analysts have been steadily raising that estimate in recent months as companies have touted the beneﬁts of a lower tax rate, a healthy consumer and higher oil prices. Of the companies that have reported so far, 80% have posted per-share earnings that beat the expectations of Wall Street analysts, with the companies on average topping estimates by 5.9%. Both of those metrics are ahead of ﬁve-year averages. At the sector level, health-care, energy and real-estate companies in the index have delivered the highest percentage of earnings beats, while materials and consumer discretionary ﬁrms are underperforming the other sectors. Market moves, meanwhile, have been muted. Companies that reported stronger-than-expected earnings have seen their shares on average rise by 0.1% two days before the earnings release through two days after, well below the ﬁve-year average increase of 1.1%. And the companies that disappointed by posting weaker-than-expected numbers have seen their shares slide 0.9% over the same period, much smaller than the ﬁve-year average decline of 2.4%. American Express 69 companies beat expectations 3 met expectations General Mills Netﬂix 13 missed views Monsanto AutoZone Progressive Acuity Brands M&T Bank Shares of nine companies declined after failing to meet earnings expectations. –30 –20% Four stocks rose despite disappointing earnings. CarMax Lennar SHARES DECLINED –15 –10 –5 SHARES ROSE 0 5 10 15 SHARE-PRICE CHANGE, TWO DAYS BEFORE EARNINGS RELEASE THROUGH TWO DAYS AFTER Analysts have repeatedly raised their ﬁrst-quarter earnings growth estimates for companies in the S&P 500. So far, results have bested those expectations. Companies in the S&P 500 have been generating some of their strongest earnings growth in years in recent quarters. 20% 20% The week of April 23 will be the busiest of the ﬁrst-quarter reporting season. 176 companies 15 134 10 10 5 0 32 0 1 15 December 1 15 January 1 15 February 1 15 March –10 1 20* April 2014 ’15 ’16 ’17 ’18† April 23 April 30 May 7 10 10 2 May 14 May 21 May 28 *Earnings growth for April 20 includes results of 86 S&P 500 companies that reported so far and estimates for the remaining ﬁrms. †Figure for 1Q 2018 is a blend of actual earnings and estimates. Second-quarter ﬁgure is based on estimates. Source: FactSet Reporting by Michael Wursthorn and Akane Otani, graphic by Peter Santilli/THE WALL STREET JOURNAL. HEARD ON THE STREET Email: email@example.com FINANCIAL ANALYSIS & COMMENTARY Fed Tests Weigh on Bank Stocks Bank profits are doing great; bank stocks, not so much. One big reason is uncertainty over future dividends and buybacks. This is in the hands of the Federal Reserve. The central bank determines how much large banks are allowed to pay out to shareholders— from July through the following June every year— through its annual stress tests. This year, bankers are warning that the tests will be particularly tough. As in previous years, the Fed assumes in its “severely adverse” scenario that the unemployment rate spikes to 10% over seven quarters. With unemployment at 4.1% this year, compared with 4.7% last year, the jump would be bigger. “You need some very severe shocks to hit 10%,” Morgan Stanley Chief Executive James Gorman said on a call with analysts. “We are prepared for a range of outcomes this year.” Future stress tests will introduce even more uncertainty. The Fed’s proposed new capital requirements in- Buyback Bonanza Total share repurchases since June 2017 $13.9 billion JPMorgan Chase 13.3 Citigroup 12.8 Bank of America 6.2 Wells Fargo 4.6 Goldman Sachs 3.8 Morgan Stanley Sources: the companies THE WALL STREET JOURNAL. clude a new layer of funds called the stress capital buffer, which can change each year depending on how banks fare in the stress tests. Analysts estimate Morgan Stanley and Goldman Sachs will be hardest hit by the change, but every bank undergoing the tests may face increased variability in their capital requirements from year to year. “The question is: Is that going to introduce uncertainty? And is that going to force all these banks to have…more of a buffer?” asked Bank of America Chief Financial Officer Paul Donofrio on a conference call. The rules may yet change. JPMorgan Chief Financial Officer Marianne Lake said she hopes “there will be some sort of mechanism considered to accommodate, smooth or otherwise allow for things not to be whipsawed around.” Bankers measure their words carefully when talking about their most powerful regulator. These comments suggest they aren’t happy. There is a case to be made that some banks shouldn’t be prioritizing share buybacks right now anyway, given high valuations. In late 2016, JPMorgan Chief Executive James Dimon said buybacks weren’t a great use of capital when valuations get high. Since then the bank’s valuation has risen from 1.66 times tangible book value to 2.09 times. And when shareholders don’t get their buybacks they get frustrated. That was made clear this past week when Goldman Sachs said it doesn’t expect to do any buybacks during the second quarter because of an earlier tax charge. Its shares promptly fell 1.6%, despite excellent earnings. To keep shareholders happy, banks likely need to buy back as many shares as the Fed will let them. The problem right now is that neither the banks nor their shareholders have a clear idea how much that will be. —Aaron Back OVERHEARD Actively managed mutual funds have been on the retreat thanks to the onslaught of cheaper index funds. Goldman Sachs Group, however, has come to the maligned active managers’ defense, arguing they are good stock pickers. Analysts at the bank said in a report that two important factors have concealed this: They have to keep a certain percentage of their assets in cash so that they can honor redemptions and mutual-fund returns include fees averaging around one percentage point a year since 1990. Excluding only fees, Goldman said mutual funds would have outperformed the S&P 500 by 0.22 percentage point a year since 1990. But here comes the problem: Investors don’t really care if fund managers are good stock pickers if they don’t get to share the benefits. The good news is that fees are falling. If the trend continues, mutual-fund investors may soon be able to get a fair return. Flattening Yield Curve Is Problem for More Than Just Fed The flattening U.S. yield curve, a harbinger of possible economic trouble, has caught the eye of officials at the Federal Reserve. But a potential problem for the Fed is a worry for the rest of the world, too—especially the European Central Bank. An inverted U.S. yield curve—in which short-term rates rise above long-term rates—has a strong record of being a leading indicator of recession. Last week, the gap between two-year and 10-year U.S. Treasury yields reached its narrowest since 2007, below 0.5 percentage point. If it were to continue flatten- Falling Short Change in eurozone consumer prices from a year earlier 3% 2 1 0 –1 2011 ’13 ’15 ’17 Source: Eurostat ing, the curve could invert later this year or early in 2019. In addition, swaps measuring U.S. interest-rate expectations for 2021 have edged below those for 2020, notes Deutsche Bank, showing investors are thinking about the Fed cutting rates, not just raising them. The timing matters because the ECB has locked itself into a very gradual path from exit. It isn’t expected to finally wind down its bond purchases until the end of the year. Rates are likely to rise only slowly after that. By 2020, the ECB might only just have exited its negativeinterest-rate policy. It is, of course, easier to tighten policy when the growth outlook is good. If the yield curve continues to flatten, however, and markets grow nervous about a hit to U.S. growth, that might at the least complicate the ECB’s task in exiting ultra-loose policy. A U.S. downturn would undoubtedly affect Europe. And if a real downturn were to emerge in the U.S.— Société Générale is forecasting a mild recession in 2019-2020—and spill over elsewhere, then a debate would start about what tools central banks have left. While the Fed now has some room to cut rates again, the ECB might be grappling with inventing new ways to provide stimulus. True, there is plenty of debate over what message the U.S. curve is actually sending and how flat it is. UBS argues global quantitative easing has distorted long-term bond yields by reducing the term premium, or the extra yield investors demand for uncertainty about monetary policy. But if investors fear a U.S. slowdown or recession and pull back from taking risk, that will tighten financial conditions. The ECB is trying very hard not to spook investors. Reaching the exit may be the bigger challenge. —Richard Barley WSJ.com/Heard China Banks In Another Funding Jam You can say this for Chinese banks—they are pretty creative when it comes to raising funds. Pressure from regulators means it has been getting harder for banks in China to get enough money. Wealthmanagement products, short-term investments which have offered customers generous returns, have fallen from favor. Now Beijing is worried that these often highly leveraged, off-balance-sheet products have been juicing asset markets and creating risks for the banks. The wholesale markets have become tricky and expensive. Customer deposits have been lackluster too, rising by 8.7% in March—slow by historic standards. The latest products stepping into the breach are structured deposits, according to Rhodium Group. Though they have been around for a decade or so, their usage rose by a net 1.4 trillion yuan ($223 billion) in the first two months of 2018. Take the 367-day structured deposit, cited by Rhodium, that is being offered by China Merchants Bank. It will pay customers a generous 4.35% return unless gold prices move up or down by $550 during the product’s lifetime. In that highly unlikely event the rate would drop to just 1.75%. In other words, China Merchants is prepared to pay a high return unless something very unusual happens. That looks like a pretty good deal for the bank’s customers but not for its investors. The more banks are forced to pay for funds, the lower their profits, and likely their stock prices, will go. —Andrew Peaple . JOURNAL REPORT THE WALL STREET JOURNAL. © 2018 Dow Jones & Company. All Rights Reserved. Follo The E w xper ts A Convn Online e DETA rsation I LS Monday, April 23, 2018 | R1 , R2 In Defense of the Not-So-Busy Retirement RYAN ETTER I BY DAVID EKERDT N THE 1980S, I interviewed men about their transitions from work to retirement. I didn’t need to talk to them very long before many told me how busy they were. “I’m busier than ever.” “I’m so busy now that I don’t know how I found the time to work.” Thirty years later, I see no letup in this emphasis on busy retirements. If anything, it has gotten more pronounced, especially as the baby boomers start to leave behind careers in pursuit of their next acts. For today’s retirees, busy boasting is the new status symbol—the idea that there is no time to rest when there are so many places to see, causes to champion, classes to take, languages to learn and businesses to start. I am all for people pursuing their dreams. But based on decades of studying retirement and retirees, I am convinced that something else is happening here. Too many people may be bending their dreams to the expectations of others. They’re following the paths that cultural norms, peer pressure and commercial interests are mapping out for them, bypassing alternatives for more control and contentment in retirement. A busy retirement is absolutely fine. But so is a not-so-busy retirement. it on the cultural value we place on hard work, and the ennobling status that it confers. A full life in retirement provides moral continuity with what went before. How many times do we hear—and laud—the executive who never takes vacation, or answers email at all hours? If this is something to be applauded, why would we expect that to change suddenly, just because a career ends? You can trace this back to the 1950s, when, thanks to increasing wealth and longer they’ve come to rely on them for their growth. Their marketing serves to reinforce the belief that the commitment of time and money makes retirement more admirable. Retirement’s blank canvas, after all, can be filled in by products and services that occupy that time: leisure and tourism experiences, hobby materials, home projects, arts and performances, health regimens, sports, and attractions that indulge grandchildren. Colleges offer arrays of learning opportunities to older adults. Churches and service agencies hunger for more volunteers willing to give back to their communities. Political activism beckons retirees ready to take up new causes. Little wonder, then, that while there are many ways to fill a calendar, there is one main way to be a poor retiree, which is to be idle—usually spoken of with pejorative, sedentary metaphors such as the rocking chair, the couch, sitting around, staying home. I still interview people about retirement, and the passive retiree endures as a negative model. As one woman told me: “I don’t want to get into that, where I sit there and watch reruns for the next 100 years. There’s got to be some discipline.” Another woman worried about her husband’s indolence in the early months of retirement. His flaw? Lying on the sofa and reading paperbacks (which seemed to me like a great way to ease into the rest of one’s life). Retirees often boast that they have less free time than when they were working. That isn’t necessarily a good thing. Blame the culture How did we get to this place, where busy is seen as the default pace of life? Blame much of Dr. Ekerdt is professor of sociology and gerontology at the University of Kansas in Lawrence. He can be reached at firstname.lastname@example.org. lifespans, retirement began to be seen as a new stage of life. Experts at the time expressed wariness about the new leisure and worried that its apparent emptiness, its purposelessness, would harm health. It was viewed as a “roleless role.” Writing in the British Medical Journal in 1950, J.H. Sheldon said that “a busy rather than an aimless life is an ideal prescription for old age, and the proof lies in the well-known sight of the man who retires from a busy occupation to die in a year or two of boredom.” In subsequent years there has been no lack of proposals for the admirable, purpose-driven retirement. All to fill in the roleless role. Another factor behind the busy ethic is the consistent medical advice about physical activity and health maintenance. Fit and strenuous lifestyles have therapeutic benefits and testify as well to the quality of one’s will and character. Then there is the encouragement that comes from other, less obvious quarters. Specifically: Many companies and institutions have targeted retirees as consumers and collaborators, and When busy turns oppressive All of which leads to a question: What’s wrong with extolling the value of an energetic, active life? One obvious downside of the busy standard is that we are creating demands that many retirees simply can’t fulfill. For reasons of health, Please turn to the next page INSIDE So You Want to Start a Travel Business Where Retirees Underestimate Their Spending Needs Many in Middle Age Have Arthritis but Don’t Know It Lots of people do. Just be sure you know what to expect. R2 Wrong assumptions can dig holes that are hard to climb out of R4 If more people were diagnosed, doctors might be able to help R6 How Retirees Can Plan For a Down Market Preparations to help avoid selling stocks at depressed prices R3 Change Your Personality Later In Life? Yes, It’s Possible Three experts discuss how radical change can be achieved R5 If You’re Thinking of Retiring in San Miguel de Allende... Letters My Father Wrote, and a Vanishing Key to the Past Green Designs Catch On In 55-Plus Communities I Want to Downsize. But I Hate To Get Rid of My Stuff. A cardboard box offered clues to one of the mysteries of my life R4 Buyers like reducing carbon footprints and conserving water R5 An arts colony and temperate haven for expats in Mexico R7 A couple finds how hard it is to let go of things they’ll never use R10 . THE WALL STREET JOURNAL. R2 | Monday, April 23, 2018 JOURNAL REPORT | ENCORE ASK ENCORE | GLENN RUFFENACH So, You Want to Start a Travel Business Lots of retirees do, and many enjoy it. But just make sure you know what to expect. I’m thinking about starting a travel business in retirement. Have you talked with people who have done this? Any insights? SONIA PULIDO This is a popular topic. For retirees with an entrepreneurial bent, a travel company seems like a great idea. After all, such work holds the promise of seeing the world and getting paid to do so. Yes, we have talked with retirees who have taken this path—as travel agents, writers, tour guides, cruise planners. Many seem to enjoy their new careers, but, as with any small business, there are drawbacks. A retired middle manager for General Electric, who started a travel company that offers private excursions to Europe and elsewhere, told us the work “sounds glamorous.” But she quickly listed some of the challenges involved: changes in clients’ plans; a never-ending series of questions about restaurants, nightlife, logistics and dozens of related issues; and unexpected events (one she recalled vividly: a suddenly active volcano) that invariably require rebooking customers and rescheduling activities. Her best advice (and a suggestion we have heard frequently): find a niche and excel at it. “You can’t succeed with general travel; everyone’s selling regular travel,” she says. “A niche can be a specialty activity—like food, wine, cooking, spas, diving—or destination specialization. And it takes time to become an expert.” If you’re thinking about starting a business in retirement, travel or otherwise, start with the basics: The Small Business Administration has a number of valuable resources (see: sba.gov/tools), as does the Ewing Marion Kauffman Foundation (fasttrac.org) AARP (aarp.org/work/small-business), and SCORE (score.org). For travel in particular, the Travel Institute, based in Framingham, Mass., offers a good list of industry associations and publications where you can begin to educate yourself about travel jobs. (Go to thetravelinstitute.com, highlight “Start a Career” and click on: Travel Industry Resources.) Interestingly, many of the retirees we have talked to about this topic haven’t started their own business; rather, they work for groups or in settings that allow them to travel for little or no cost. (And in some instances, they get paid.) Among them: CoolWorks (coolworks.com) says it helps I’m afraid you can’t do this. This question refers to “qualified charitable distributions,” a topic that is generating a lot of mail from readers. As we discussed in my March 5 column, the new tax law will make QCDs more attractive for some taxpayers. The rules: Individuals over age 70½ can transfer as much as $100,000 annually from their individual retirement account directly to most types of charities. That transfer is excluded from your income and, if done correctly, counts toward the IRA owner’s required minimum distribution for the year. The key word in the preceding paragraph is “directly.” The transfer “must be a direct gift to the charitable organization, and not to another supporting organization that makes the gift,” notes Ed Slott, an IRA expert in Rockville Centre, N.Y. In this case, Schwab would be considered a “supporting organization.” Thus, your strategy won’t work. New Entrepreneurs Among those individuals who started a business in 2016, about 1 in 4 were ages 55 to 64, compared with about 1 in 7 a decade earlier: 20-34 35-44 45-54 55-64 34% 1996 2016 27% 24% 24% 24% 26% 15% 26% Note: Sample included too few entrepreneurs younger than 20 and older than 64 to produce meaningful results for those ages. Source: Kauffman Foundation THE WALL STREET JOURNAL. people find jobs in “national parks, ski resorts, dude ranches, retreat centers and everything in between.” (In particular, under “Resources,” see the site’s “Older and Bolder” page.) Modern-Day Nomads (moderndaynomads.com) is for “creative professionals” who want to travel the world. Transitions Abroad (transitionsabroad.com) helps connect job seekers with opportunities overseas. And Workamper News (workamper.com) advertises job openings, primarily for “RVers,” in recreation, travel and tourism. i Mr. Ruffenach is a former reporter and editor for The Wall Street Journal. His column examines financial issues for those thinking about, planning and living their retirement. Send questions and comments to email@example.com. i i i i I am 56 years old and divorced. My former husband and I were married for more than 10 years. He died in 2017. My question is about my Social Security benefits. Can I begin collecting a survivor’s benefit and, at some point in the future, switch to my own benefit? i If I am over 70½ years old, may I transfer my required minimum distribution to my Schwab Charitable Fund, which is a donor-advised charitable fund, without having to include the distribution as taxable income? Yes, you can do this, but you need to be very (very) careful. To start, a “surviving divorced spouse” (in the language of the Social Security Adminis- In Defense of the Not-So-Busy Retirement How We Spend Our Time Average hours spent each day in different activities according to age group, 2016 annual averages Ages 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75 and over 8 hours 7 6 5 4 3 2 0.08 1 0.10 0 Working and work-related 0.02 0.03 Educational 0.0 Organizational, civic and religious Leisure and sports Eating and drinking THE WALL STREET JOURNAL. Source: American Time Use Survey, Bureau of Labor Statistics Continued from the prior page duties to spouse or family members, or limited income, the chance for a busier-than-ever life is sometimes beyond reach. It hardly seems fair that retirees, released from the obligations of work, should be expected to turn around and face burdensome work-like obligations as the path to virtue. In general, though, there is nothing wrong with placing expectations on retirees, especially if this advice motivates positive practices such as physical activity or social connection. Expectations edge toward oppressiveness when the fulfillment of idealized retirements depends on the consumption of costly leisure goods and experiences, or on the self-conscious selection of activities for their status value. This replicates in retirement some of the same social hierarchies and competitiveness of the working years and from which work withdrawal promised an escape. Meet the new boss, same as the old boss. Instead, I believe that the mantra should be: Let retirement be retirement. Studies of people who pass from work to retirement consistently find that they prize sovereignty over time— freedom—as the great gift of their new stage of life. This should include the freedom to shrug off any pressure to conform to a busy standard. Our society has a sufficient number of retirees who feel driven to pass their later years believing that they must drag an energetic middle age as far into the future as they can. Let them chatter on about their bucket lists. But let others feel comfortable not having any bucket list at all. Anyone’s retirement can be purpose-driven as long as it is one’s own purpose at one’s own pace. One of the wisest books about life after work, “The Experience of Retirement,” written by my good friend Robert Household Weiss, advised a rough 50-50 mix of engagement and freedom. Too many obligations can cost too much in freedom; too much free time can foster feelings of marginality. “Keep time for yourself, yes, but not to the exclusion of continuing to play a role in the world.” Bob also endorsed the satisfactions of “puttering.” Easier said than done, of course. For retirees who want to pursue the not-so-busy life, nudges to do otherwise are constant. They find themselves being asked about their lives nowadays: So what are you up to? What are you doing with yourself? Are you keeping busy? How can they ever feel comfortable answering, not much? It helps to remember that such questions are only partially about routines and the use of time. They are likewise a request to understand the role of a person who is now excused from work in a society that is all about work. Basically, where do you fit? It’s a fair question that offers both a challenge and an opportunity in crafting an answer. The slow retirement If not using the b-word, this is the moment to speak honestly about your grappling with time. “My retirement? Well, I’m taking some time to figure it out, pausing to reflect. I’ve been exploring my options. I’m taking it as it comes.” Retirees who present themselves as seekers as well as doers are actually aligning their retirements with the “slow movement,” the cultural philosophy that encourages lifestyles that are more considered and deliberate. This kind of downshifting has found applications in many areas, such as travel, the enjoyment of food and religious practices. Slow retirement? It’s not as redundant as it sounds. What I am FOLLOW THE EXPERTS >> This Journal Report doesn’t stop here. Join us online with The Experts—a group of industry, academic and cultural thinkers who weigh in on the latest retirement issues raised in this and future reports. Read what they have to say at WSJ.com/Experts. Posts featured throughout the week include: “How to Best Reap the Health Benefits of Volunteer Work,” by Marc E. Agronin, geriatric psychiatrist at Miami Jewish Health. “Why Women Fear They Will Run Out of Money,” by Maddy Dychtwald, author and co-founder of the Age Wave think tank and consultancy. “The Best Account to Tap for an Annuity Purchase,” by David Blanchett, head of retirement research for Morningstar Investment Management. “The Epidemic of Loneliness—and How to Combat It,” by Paul Irving, chairman of the Center for the Future of Aging at the Milken Institute. tration) can begin collecting a survivor’s benefit at age 60. Then, at 62—or later, if you wish—you can switch to your retirement benefit, the one based on your earnings history. This assumes, of course, that your retirement benefit is larger than your survivor’s benefit. (The reverse option is also available: You can apply, first, for a retirement benefit at 62, and later switch to a survivor benefit.) This “switching” strategy can make a big difference for a divorced spouse and her or his retirement finances. (The rules apply equally for divorced women and men.) For instance, say you claim a survivor’s benefit at age 60, and put off claiming your own retirement benefit until age 70, the maximum allowed. Once you make the switch, the delayed retirement benefit will have increased significantly (about 7% annually between ages 62 and 70). But this is also an area where mistakes can be expensive. A study published in February by the Social Security Administration’s inspector general found that some agency staffers have failed to inform widows and widowers about their options regarding benefits. As such, some applicants are making an error in how they claim Social Security—an error that, first, effectively eliminates the possibility of switching benefits in the future, and, second, is costing survivors many thousands of dollars. To be specific—and this gets a bit technical, unfortunately—some survivors, unknowingly, are claiming both benefits, survivor and retirement, at the same time. If you wish to keep the option of switching benefits in the future, you must apply for just one benefit at the outset, either a survivor benefit or a retirement benefit. How costly can this mistake be? The inspector general estimates that approximately 9,200 beneficiaries age 70 and older have been underpaid about $132 million and that, going forward, about 1,900 beneficiaries under 70 will be underpaid about $9.8 million annually. So, the lesson here is clear: If you are a survivor—a widow, widower or surviving divorced spouse—who’s about to file for any kind of benefit from Social Security, you should first ask the agency employee who is helping you to explain all of the rules and options. And to be safe, I would tell the employee that you are planning (if, in fact, you are) to switch benefits at some point in the future—and that you want to be sure that you aren’t unintentionally or mistakenly eliminating that option. I also would urge all survivors who plan to apply for Social Security benefits to read the inspector general’s report. Go to oig.ssa.gov and search for: Higher Benefits for Dually Entitled Widow(er)s. suggesting are mindful retirements that would not mean withdrawal from relationships, commitments and adventure but rather entering them deeply and at a comfortable speed. As examples of this, retirees with spare time can re-enter two kinds of relationships, human and material. For the first, think of those dear people who have mattered personally over the years—great friends from childhood, school, former jobs, old neighborhoods— but who in the press of middle age have become once-a-year contacts on a holiday card. Awaken these dormant ties and renew them. With so many ways now to correspond, there is no excuse not to check in. Visit them, stage a reunion, compare memories of the way it was, and hash over the way it’s all turned out. Reanimate your affection and, indeed, love for them. The other thing to tend to is possessions. A home contains uncountable thousands and thousands of objects. Many of them were put aside for later, and now is the season to explore them and enjoy the possibilities that they hold. If not now, when? Work through those cookbooks, play that recorded music, use those tools to make something, burrow into that box of family history. Go rest idly on that garden bench that you have ignored for years. Fish or cut bait on the clothes that you kept to wear again or someday fit into. In revisiting these belongings, what will come into focus is the person you were, are, and yet want to be. Lifestyle choices, wrote the sociologist Anthony Giddens, are decisions “not only about how to act but who to be.” Becoming someone is exactly the task in the open-endedness of retirement when there is more daily time but also an awareness that the length of the future is unknown. Who will I be? That is the real do-it-yourself project of retirement. And it may have nothing to do with being busy. The Journal Report welcomes your comments—by mail, fax or email. Letters should be addressed to Lawrence Rout, The Wall Street Journal, 4300 Route 1 North, South Brunswick, N.J. 08852. The fax number is 609-520-7256, and the email address is firstname.lastname@example.org. THE JOURNAL REPORT For advertising information please contact Katie Vanderhoff at 212-597-5972 or email@example.com REPRINTS AVAILABLE INDIVIDUAL COPIES: Recent issues of The Wall Street Journal can be purchased at wsjshop.com while supplies last. The entire issue including this report can be obtained for $11. The report alone is $6. BULK ORDERS: For more than 10 copies, please email firstname.lastname@example.org to inquire about discounted pricing and shipping. REPRINT OR LICENSE ARTICLES: To order reprints of individual articles or for information on licensing articles from this section: Online: Phone: 1-800-843-0008 Email: email@example.com . THE WALL STREET JOURNAL. Monday, April 23, 2018 | R3 JOURNAL REPORT | ENCORE How to Plan for a Down Market Don’t sell stocks at depressed prices. The key is preparation. MARKET CORRECTIONS are a worry for all investors, but they can pose a particularly big problem for people who have just retired and are starting to dip into savings. Each time retirees sell stock, it digs a hole out of which their portfolio must climb to keep producing the same amount of income over time. The more they sell—and the earlier—the deeper the hole. Selling during a correction, when stock prices may have fallen to a fraction of their recent market value, could cause a retiree to run low on resources sooner than expected. “If you get off course at the beginning, it could be very difficult to recover,” says Dan Keady, chief financial planning strategist at financial services firm TIAA. Despite recurring volatility, most retirees must hold some stocks to keep pace with inflation. For those investors in particular, it’s important to have a Plan B to cover ongoing financial needs so that if stocks crater, the retiree can avoid being forced to sell shares at depressed levels. Here are some suggestions on how to minimize the risk: 1. First, do the math A good place to start is to estimate how much of your monthly budget would not be covered by fixed sources of income. Most people mistakenly think this involves the tedious process of adding up a year’s worth of receipts, says Joe Lucey, who heads Secured Retirement Advisors LLC in St. Louis Park, Minn. The much easier method, Mr. Lucey says, is to tally all the money taken from bank accounts in 12 months that hasn’t been stashed away somewhere else. Next, calculate the income expected regularly from Social Security, pensions or other sources. Once you know what the gap between expenses and income will be, set aside a cash reserve or other fixed-income asset big enough to spin off cash to cover that gap until the market recovers. This provides a buffer, says Jim Barnash, an adviser at SGL Financial, Buffalo Grove, Ill. A retiree’s regular flow of income often covers as much as two-thirds of their total spending. But it’s that uncovered Who Has How Much? Average IRA/401(k) balance for median working households in 55-to-64 age group by income quintile, as of 2016 Income range Average balance Less than $39,000 $39,000– $60,999 $61,000– $90,999 $91,000– $137, 999 $13,000 $53,000 $100,000 $132,000 $138,000+ $452,000 Sources: Center for Retirement Research at Boston College; U.S. Board of Governors of the Federal Reserve System THE WALL STREET JOURNAL. third that represents how much a person has to withdraw from savings to maintain a certain level of spending. There is no way of knowing how long a downturn will last, and thus how big that reserve needs to be exactly. But most corrections, Mr. Barnash says, last three to nine months. 2. Balance with safer stuff The non-equities part of a portfolio should be a mix of cash and bank certificates of deposit or highly rated short-term bonds, experts say. Money-market yields have been rising as the Federal Reserve raises short-term interest rates. Some federally insured money-market accounts now pay 1.75% to 2% a year. Because certificates of deposit and bonds with slightly longer maturities offer better rates than cash, advisers often create a basket of CDs or individual bonds with sequential annual maturities—a so-called ladder—to ensure a steady replenishment of cash in a portfolio. Buying individual bonds can be challenging for nonprofessionals, but investors could also consider an ETF that invests in short-term government bonds, says Nikolaas Schuurmans, founder of advisory firm Pure Portfolios in Portland, Ore. While the share price will fluctuate with shifts in market sentiment, such ETFs pose relatively little risk, he says. Mr. Schuurmans uses Schwab Short-Term U.S. Treasury (SCHO), which charges 0.06% annually in expenses. A similar option, Vanguard Short-Term Treasury ETF (VGSH), has an expense ratio of 0.07%. A PASSION FOR STEM 3. Watch the equity allocation After years of rising markets, many people may own more stocks than they think. Some also may be out of the habit of rebalancing a portfolio periodically and staying well-diversified, says Spuds Powell, managing director of the advisory firm Kayne Anderson Rudnick. One thing to do right away: If the equity allocation has surged much above 60%—a common benchmark for how much to keep in stocks— consider paring it back, advisers say. ROBYN TWOMEY BY MICHAEL A. POLLOCK SECOND ACTS 4. Plan to tighten the belt Many people believe they will spend less in retirement than when they were working. Actually, the opposite can be true, at least in the first few years. New retirees have more time to spend money and may indulge in expensive luxuries. Retirees often don’t react well to suggestions that they spend less, but “realistically, you might have to cut spending some if there is a market downturn,” says Mr. Keady of TIAA. One way he suggests is to keep annual withdrawals from savings at a constant rate, which might be around 4% a year. Advisers also sometimes suggest that people delay taking Social Security for a few years, because that can mean getting larger future Social Security payments. 5. Be wary of borrowing Many people have substantial equity tied up in a home. A retiree could create a contingency reserve by taking out a home-equity loan or a line of credit, if necessary. But in most cases, advisers caution against that. The strategy could backfire if a correction proved much deeper or longer than usual, leaving a borrower with a hefty debt burden. “For people who have retired, whether they are taking regular withdrawals from savings or not, borrowing usually doesn’t make sense because it tends to increase risk,” says Mr. Powell. Mr. Pollock is a writer in New Jersey. Email: firstname.lastname@example.org. BY JULIE HALPERT Cynthia Barnett began her career in education in 1975 as an elementary-school teacher in Norwalk, Conn., where she always kept a piano in the room. The piano, she says, helped her draw out the shyer students whom she assigned to lead roles in class musical performances. “It gave them a lot of confidence,” she says. After so many years, Ms. Barnett is still inspiring confidence in children, now through a nonprofit she started that encourages young girls to learn about and pursue careers in science and technology. In 1996, while working as assistant high-school principal in Norwalk, she started her first nonprofit, the Saturday Academy, through which local boys and girls met on Saturdays to learn about computers and science and take trips to a museum in New York. Ms. Barnett kept the program going until she retired in 2003 to pursue other interests. Then, in 2008, inspired by an article about how few women pursue careers in science, she changed her trajectory and returned to education. “It triggered a lightbulb in me,” she says. “I wanted to join the movement to help young girls think of the STEM [science, tech- Cynthia Barnett Age: 74 Hometown: Norwalk, Conn. Primary career: Public-school teacher and administrator Current path: Founder of Amazing Girls Science, a nonprofit program that teaches and inspires girls about science, technology, engineering and math Why this path: “It’s all about providing an opportunity the girls might not have realized they had.” nology, engineering and math] area as a possible career.” The following year, with help from Norwalk Community College, she launched Amazing Girls Science, a program that attempts to encourage enthusiasm for STEM subjects and to bolster girls’ confidence and self-esteem. Roughly six part-time employees and 20 volunteers work for the nonprofit, which gets funding from several foundations and corporate donations. “The joy I get from helping girls ignite a spark for STEM is indescribable,” says Ms. Barnett. Second Acts looks at the varied paths people are taking in their 50s and beyond. The profiles are by Julie Halpert, a writer in Michigan. Reach her, and let us know how you’re starting over, at email@example.com. ARE YOU PREPARED TO NAVIGATE FIXED INCOME RISK? We’re with you the entire way Through rigorous credit research, MFS assesses risk and explores opportunities to help advisors help their clients. Learn more about our risk-aware approach at www.mfs.com/fixedincome ©2018 MFS Investment Management 39790.1 . THE WALL STREET JOURNAL. R4 | Monday, April 23, 2018 JOURNAL REPORT | ENCORE ROBBIE SHELL A cardboard box found in my basement offered clues to one of the mysteries of my life Without letters, future generations will have limited knowledge of the people who came before. BY ROBBIE SHELL TWO MONTHS AGO, in a remote corner of my basement, I found an old cardboard box containing 60 letters my grandfather had written to my father while he was away at college. Another box, inside the first, contained approximately 200 letters my father had sent to his parents during World War II when he was an Army intelligence officer stationed in the Southwest Pacific. Finding these letters—written in pen on parchment-thin white paper—was like discovering a trove of ancient relics from an era when letter-writing was how people shared information. More important, the letters offered clues to one of my life’s enduring myster- ies: why my father—who deeply loved, and was deeply loved in return by his father— would choose in midlife to abandon his wife and children, home and career to set out on his own, breaking up into six disparate parts what had once been a close-knit family. At their best, letters are personal, discursive, emotive. They are material for biographies, for memoirs, for children and grandchildren. They can shed light on complicated family relationships, leaving a trail for other family members to follow, like the breadcrumbs Hansel drops in the forest to help him and Gretel find their way home. These days, few of us write letters, which means future generations will have limited knowledge of the people who came before them, those they knew and those they never met. Father and son My grandfather was a Scottish-born insurance executive in Hartford, Conn., who died before I was born. Through his letters, I learned that he read widely and was curious about many things. In giving advice to my father away at college, he quoted Edmund Spenser’s “Faerie Queen,” Polonius’s words to Laertes in “Hamlet,” Alfred Lord Tennyson’s poem “Ulysses,” and Robert Louis Stevenson’s “A Christmas Sermon,” as well as Francis Bacon, Michel de Montaigne, Ralph Waldo Emerson and the Bible. He shared long discourses on capitalism, dictators, labor strikes, Franklin Roosevelt, friendship and loyalty, the Private frustration These letters, and the thick bundle of World War II correspondence, opened my eyes to a new understanding of the intensely private man who was my father. In letters home, he spoke often of his gratitude for the care packages sent overseas by his parents, his frustration at being constantly moved without explanation from one outpost to another, and his disbelief at the ineptness of the Army’s postal service. Letters written in 1944 and 1945 expressed his anxiety over losing his place in the professional world after what Where Retirees Underestimate Spending Guessing wrong can be costly, so it’s key to know the common pitfalls the funds they can draw upon for other purposes. BY NEAL TEMPLIN NAVIGATING retirement can be difficult for lots of reasons. One of the biggest is that it forces people to make plans based on spending assumptions that won’t become a reality for decades. Guessing wrong can be the difference between a comfortable retirement and one that is a struggle. “It’s a lot more difficult to recover in retirement,” says Adam Van Wie, a financial planner in Jacksonville Beach, Fla. “You can try to find another job, but that’s not an option for everyone.” We spoke to financial advisers about some of the most BIG-TICKET PERIODIC ITEMS. Would-be retirees of- ten meticulously estimate dayto-day expenses, but forget to factor in more periodic, and mostly predictable, expenses like a new car or a new roof. And those big-ticket items inevitably blow holes in their budgets. Dana Anspach, a financial planner in Scottsdale, Ariz., recommends that clients set aside 3% of the value of their house each year for maintenance—as well as plan on setting aside money for the periodic new car. One caveat: Beware of taking big chunks of money out of financial adviser in West Columbia, S.C. Instead of working five or six days a week and playing one, it can be the opposite. “You’ve got five or six days to play,” Mr. Brown says. Americans age 65 to 74 spent an average $5,832 on entertainment in 2015, according to a study from the Employment Benefit Research Institute, based in Washington, D.C. Entertainment spending declines with age; people 85 and over in the study spent $2,232 on average. HEALTH CARE. Even Medicare recipients are frequently shocked by the cost of health care, says Joan Cox, a financial planner in Covington, La. Ms. Cox says a married couple in Where the Money Goes A breakdown of 2015 mean household spending in major budget categories, by age group Ages 50-64 65-74 75-84 85 and over $25 thousand 20 15 10 5 0 Home Food Health Transport Clothing frequent mistakes people make when it comes to estimating how much they’ll spend in retirement. HELPING FAMILY. You may be willing to slash your own expenses in retirement if times get tough. What will you do if your children, or grandchildren, get in a bind? Saying no is much harder. But saying yes can imperil your own retirement. A number of parents who guaranteed their children’s school loans have seen their own finances ruined when the child defaulted on the loan. Mark McCarron, a financial planner in Charlottesville, Va., is working with a retired couple who paid for the wedding of one daughter, and expect to pay shortly for the wedding of their other daughter as well. They have the cash, says Mr. McCarron. The rub is that they just hadn’t planned on paying for weddings when they retired, and it reduces Entertainment Other THE WALL STREET JOURNAL. Source: Employee Beneﬁt Research Institute a 401(k) or other tax-deferred accounts, Ms. Anspach says. Such withdrawals are treated as taxable income and can push retirees into a higher tax bracket. A better approach is to withdraw the money gradually over a two- or three-year period for an expected expense. Belinda Ellison of Greenville, S.C., who recently retired as a lawyer, sets aside money for unforeseen landscaping expenses. So she was ready when she had to spend $10,000 recently to remove a huge tree on her property. Ms. Ellison owns a 100-year-old home, and has another fund set up for renovation expenses. It’s not so with everybody she knows. “I have friends who have trouble when they need a new set of tires,” Ms. Ellison says. ENTERTAINMENT. Many retirees are surprised at how much their entertainment costs rise when they stop working, says Neil A. Brown, a their late 60s can expect to spend close to $13,000 a year in medical expenses. That assumes $8,000 in Medicare premiums and supplemental insurance premiums, $1,200 for drug coverage, and $3,700 in out-of-pocket expenses. “I’ll do their financial plan, and it looks like they have plenty of assets” for retirement, she says. “Then I’ll put in health-care costs, and all of sudden their plan doesn’t work.” Drugs costs, in particular, surprise retires, says David Armes, a financial planner in Long Beach, Calif., who specializes in helping clients evaluate Medicare options. “Many of these cost drivers cannot be accurately predicted when you’re in your 60s,” he says. “There’s no way for 65-yearolds to know, for instance, whether they will need to take expensive brand-name drugs when they reach their 80s.” For affluent retirees, there can be another surprise with Medicare. Couples whose modified adjusted gross income exceeds $170,000 a year must pay higher premiums. To lessen those expenses, a couple might try shifting income to one year so that they will avoid higher Medicare premiums in other years, says Mr. Armes. LONG-TERM CARE. The need for long-term care is perhaps the most costly unexpected expense in retirement. About 15% of retirees will spend more than $250,000 on such care, according to a research report to be released this spring by Vanguard Group The problem is it is impossible to know who will be part of that 15%. Some 50% of retirees won’t spend anything at all, and 25% will spend less than $100,000, the Vanguard report says. “It’s hard to plan for,” says Colleen Jaconetti, a senior investment analyst with Vanguard. For years, financial planners urged people to buy longterm care insurance. But that market has shrunk dramatically in recent years after insurers underestimated costs and were forced to jack up premiums or withdraw from new sales. Some insurers now offer hybrid policies that combine life insurance and longterm-care insurance. These policies allow consumers to tap their death benefits early to pay for costs such as help with feeding, bathing and other personal needs. LIVING A LONG LIFE. One of the biggest mistakes people make in estimating retirement expenses is underestimating how long they will live. The average 65-year-old in the U.S., for example, is likely to live an additional 19.4 years, according to data from the National Center for Health Statistics. Obviously, the longer the life, the more the spending. It can be a good problem to have—but one that surprises too many people. “Everybody worries about dying young,” says Prof. David Littell of the American College of Financial Services. “People should be more worried about living too long.” Mr. Templin is a writer in New Jersey. He can be reached at firstname.lastname@example.org. would be five years in the military. He complained repeatedly about the Army’s delay in finalizing his discharge. Most of all, he wrote about missing his father. “Am still dreaming of the day we shall meet again and hope it won’t be too far off,” he said in 1944. “Be sure to keep yourself fit so we can do all the things together that we have missed for so long.” That reunion never happened: My grandfather died of cancer in June 1945, several months before my father’s fi- Letters leave trails families can follow, like breadcrumbs, to help us find our way back home. nal discharge papers came through. It was a loss that my mother said haunted him for the rest of his life. When he finally did get home, he gave up his dream of going to law school, went to work at an insurance company and married my mother, all within eight months. They had three children in 2½ years and a fourth child six years later. Reading all these letters, I wonder whether my father knew somewhere along the way that he could never live up to his father’s high expectations, and so he stopped trying. I wonder if he felt trapped by a career path he hadn’t wanted and family obligations that came too quickly. “To thine own self be true,” Polonius says to Laertes in the quote from “Hamlet.” I wonder whether my father ever had a chance to know that true self and whether that would have changed the course of his life and his family’s. He died in 1985 at age 67 from cancer and the cumulative effects of two decades of alcoholism. The four children he had left years earlier were by then scattered in cities hundreds of miles away. Digital skeletons Unlike letters, the internet doesn’t foster a culture of connection except in the most superficial ways. We send texts and write emails, long on logistics and short on substance, shoot videos and take pictures on our smartphones, compiling a prodigious online record of our activities that offers very little about ourselves. We will be passed down as digital skeletons, lacking weight and substance. I don’t have an easy fix. Should I now start writing letters? I doubt anyone would write back. Should I keep a handwritten journal for others to find, or try to approach emails in a way that serves the purpose letters once did? A friend in Nova Scotia sends me long emails in poetic form that convey feelings about her state of mind, her battle to give up smoking, her moments of happiness and of regret, the beautiful Canadian winter. She inspires me to email back in similar ways. I think of her as a closet letter writer. Perhaps we should consider coming out of that closet, finding whatever ways we can to leave behind important clues about ourselves for others to discover. Letters may not always provide the answers we look for, but they are an intentional invitation into another person’s heart and mind at a particular moment in their lives. I will consider this my first letter to my sons and most of all to my father, who it seemed was never able to find his way home. Ms. Shell is a writer in Philadelphia. Email her at email@example.com. SECOND ACTS A DREAM OF BEING A GUIDE ON THE RIVER ERICA BIGGERT Letters My Father Wrote Golden Gate Bridge, the price of gold, the pleasure of simple things and the importance of teamwork, to name just a few of the topics he wrote about. His love for my father was a constant refrain that began and ended many of the letters. “Losing a son for the greater part of four years creates a feeling of loneliness that will be with [me] for a long time,” he wrote in one. In another: “I am bound up in you, my son, and always concerned about your well-being and your well doing.… There is no moment in my life when you are in danger of being forgotten.” I learned also from his letters that my grandfather placed enormous pressure on his oldest son to be successful, to carry on the honor of the family name. “You are the representative of all that has gone into the making of you— body and mind and character. You are the outward visible sign of your training in family and school. Your parents will be judged by you,” he wrote in one letter. In another: “We expect much from you because you are capable of giving much.” And in a third: “The family name stands well and I confidently expect that you will add something worthwhile to the record.” Daniel Stillman quit his fulltime job as a physical therDaniel Stillman apist last year, driven by a challenge he had wanted to Age: 52 Hometown: Ashville, N.C. pursue for decades. Primary career: Physical Mr. Stillman became a therapist full-time white-water rafting guide, helping lead Current path: Guide for multiday trips on rivers in multiday white-water rafting three Western states over trips the course of the summer. Why this path: Mr. Stillman The job is seasonal and loves being outdoors, listenphysically demanding. It ing to the guests’ stories requires loading and unaround the campfire and loading the rafts with sleeping under the stars. thousands of pounds of gear, and sometimes rowing as much as 15 miles a day, depending on the river. It requires great skill to navigate the rapids as well. “The difficulty lies in reading the current, anticipating when to turn and how much to angle the boat,” Mr. Stillman says. “We look out for rocks, which can pin a boat, and big waves, which can flip a boat.” He plans to return to the job in June, having spent the off-season as a part-time physical therapist in Asheville, N.C., where he and his wife still live. Mr. Stillman has worked as a physical therapist in the area since 1988. Mr. Stillman’s first experience in white-water rafting was in 1991 in Asheville, when he and his wife went on a guided trip with another couple. The water was very high, the raft flipped and his wife’s friend couldn’t swim. The guide had to rescue them from the water. Mr. Stillman says he was invigorated. “I thought, ‘This looks really cool. How do you become a guide?’ ” He began working as a guide in Asheville on the weekends a few years later. Though he longed to spend more time at it, he wasn’t financially ready to leave his full-time physical-therapy job at the time, he says. Now his children are grown and he has fewer expenses. So, two years ago he started looking for a job as a whitewater-raft guide for multiday trips out West. He got plenty of rejections at first, because of his age. He ultimately found a job with Northwest Rafting Co. in Hood River, Ore. He gave notice at his physical-therapy job last April, and six weeks later he headed to Oregon. His wife is considering retiring from her job as a nurse so she can spend her summers in the West, too, he says. “When I wasn’t working, I was lonely,” says Mr. Stillman. He hopes to keep working as a guide, perhaps until he’s 70, he says. “As long as my body will let me.” —Julie Halpert . THE WALL STREET JOURNAL. Monday, April 23, 2018 | R5 JOURNAL REPORT | ENCORE Change Your Personality In Later Life? Yes, It’s Possible BY GLENN RUFFENACH THERE ARE DOZENS of questions that people can and should ask themselves as they approach and enter later life—about finances, relationships, new paths, etc. Such lists, though, typically overlook something more fundamental: Are you (pick a word) satisfied, happy, content with the person you see in the mirror? Or…if you could, would you change one or more aspects of yourself? Those questions go to the heart of new research and attitudes about people’s personalities. That research, says Gary Small, a professor of psychiatry at the Semel Institute and director of the Longevity Center at the University of California, Los Angeles, suggests that people, despite long-held beliefs to the contrary, can change fundamental character traits for the better. And the process can begin at almost any age. “It’s never too late to change our personalities in order to live happier lives,” Dr. Small says. To learn more about the possibility of such changes, and the challenges, we started a conversation by email with Dr. Small and two additional specialists in psychiatric issues: Gigi Vorgan, co-author with Dr. Small of “Snap: Change Your Personality in 30 Days,” and Marc Agronin, a geriatric psychiatrist at Miami Jewish Health and author of a new book titled “The End of Old Age: Living a Longer, More Purposeful Life.” Here’s an edited transcript of the conversation. WSJ: Dr. Small and Ms. Vor- gan, you write in your book that new research has turned personality science “upside down.” What has changed, and why is it important? DR. SMALL: Most mentalhealth professionals have been trained to assume that true core personality traits are fundamentally set during childhood and remain constant throughout life. But new research has challenged this belief. When researchers focused on “personality improvement” as an outcome of therapy, based on results from more than 200 wellcontrolled studies, they came to a remarkable conclusion: Positive improvements in personality traits resulted from treatments with mental-health professionals and from self-help, and occurred within the first month. These results confirmed that we can change our personalities if we choose to, and meaningful change can be achieved in as quickly as 30 days. And because a variety of self-help therapies work, personality gains don’t necessarily require the help of a trained professional. Traits and individuality WSJ: What “traits” are we talking about? What parts of our personalities can be changed that can help improve our lives? MS. VORGAN: There are five major groups: extraversion, openness, emotional stability, agreeableness and conscientiousness. Our individuality is determined by where we fall on the spectrum within each of these personality categories. WSJ: Can you give an exam- ple of how changing one or more of these traits could improve a person’s life? DR. SMALL: Take relationships. As people age, they may lose their connection with friends and family through moving, divorce and death. These losses can be tremendously stressful and may call for adjustments in life goals and personality. An older divorcee or widow may find herself in a situation where getting out and meeting new people becomes an important goal. For these people, increasing extraversion and emotional stability may be important. Even individuals who remain married for decades may face late-life challenges. Some couples have trouble adjusting to their empty nest when their children move out; for such couples, improving agreeableness, openness and conscientiousness may be important. DR. AGRONIN: As we age, we hit transition points—I call them “age points”—in which our previous abilities might seem to fail: retirement, grandparenthood, major illness, widowhood and others. When the time comes to reckon with gaps in our abilities, we can find ways to accept them and try to change, or we can retreat into more rigid, vulnerable and often isolated circumstances. A good example is someone who never developed any interests, hobbies or significant relationships outside of work, and upon retirement becomes quite bored, isolated and dependent on singular relationships, such as a spouse. If they lose their spouse or develop financial or physical limitations, they might find themselves with few psychological or social MICHAEL MORGENSTERN Three experts talk about the resilience of people as they age, and how radical change can be achieved resources to to help them move forward. The process WSJ: How, exactly, does a person increase extraversion, or improve openness? MS. VORGAN: We see this as involving four steps: considering, planning, acting and sustaining new traits and habits. In our book, we have an example of a couple in their early 60s, Howard and Audrey, who are considering a move to the West Coast from the East Coast. Audrey has always been a person who relishes new experiences. Howard, though, is at the opposite end of the “openness” scale; he’s comfortable with his routine and anxious about changing it. He must first “consider” whether this trait—a relatively closed personality—is something he wants to change. If so, he can begin “planning,” experimenting with strategies that can help him become more open. These strategies might include improving his listening skills (is he really hearing what Audrey is saying?) or stepping out of his routine (something as simple as trying a new restaurant). He then begins “acting” on one or more of these strategies, adopting new behaviors and giving up old ones. Ideally, with time, these improved behaviors and thinking patterns will transition into new habits, allowing Howard to “sustain” the progress he’s made. Age vs. baseline WSJ: Can people—older adults, in particular—really do this on their own? DR. SMALL: In general, an individual’s baseline personality has a greater impact on their likelihood of changing than their age. Someone who is particularly closed off and afraid of new experiences might be a poor candidate for change regardless of age. Of course, with age, most of us become more conscientious and less anxious, which can make it easier to explore new options and make changes. The greater wisdom and perspective that comes with age is an asset as well. One of my patients told me that when he turned 65 he began thinking more about what was currently meaningful in his life rather than what he needed to achieve in the future. That insight transformed his life and made his later years more enjoyable. It also helped him to change his personality and become more emotionally stable. Power of resilience WSJ: What would you tell an older adult who has doubts about their ability to change their personality? DR. AGRONIN: I think a clear message that aging individuals need to hear is the power of their resilience. We all tend to realize that our bodies are less physically resilient, and so we are more vulnerable to disease and injury. However, we also have the benefit of years of learning coping mechanisms in the face of adversity, and this can make us psychologically more resilient. This resilience is a powerful tool in later life, enabling our minds to lead us through important changes, including to our personalities. But we have to believe in the possibility of that change in the first place, and the message of Gary and Gigi, underscored by scientific research, is that such change is possible. Ultimately, it’s a message of hope. Mr. Ruffenach is a retired Wall Street Journal reporter and editor. He can be reached at firstname.lastname@example.org. An Eco-Friendly Retirement JEFFREY PIERCE/MIRABELLA Developments lure boomers with green features Mirabella, a 55-plus community in Bradenton, Fla., focuses on LEED certifications. BY JULIE HALPERT TENNIS, GOLF and an attractive clubhouse have long been staples in the universe of 55plus communities selling an active lifestyle to retirees. But a growing number of such communities are trying a different message directly geared toward baby boomers: highlighting the eco-friendly features of their developments. As boomers downsize, or look for new homes that better fit their current needs, more 55-plus communities are competing based on features like solar panels, water reclamation, energy-efficient appliances, and windows with lowreflective glass, says Samantha Reid, spokeswoman for 55places.com, an online resource for information on active-adult communities. Houses with eco-friendly designs may cost more than similar homes without them. But developers of 55-plus communities say many baby boomers are willing to pay the price. Jeff McQueen, president of Scottsdale, Ariz.-based Shea Homes Active Lifestyle Communities, a division of privately held Shea Homes, says his company makes a considerable effort to design and build energy-efficient homes, based on an internal study of boomers that indicated 50% desired en- ergy-efficient and sustainable features in their homes. Mary Anne Graf, age 70, and her husband, Paul, 71, bought a home in a Shea Homes Trilogy-branded 55-plus community in Denver, N.C., last August for $515,000. The Grafs paid more than they would have in slightly less-expensive active-adult communities, in part because of a $29,000 solar-energy package. But they chose their home partly because of the solar option. “We’ve been very satisfied and love the solar,” says Ms. Graf. The Grafs’ average electric bill is $36 a month for their 1,850-square-foot home. “We’re saving money and benefiting the environment.” Environmentally friendly designs have become necessary to compete, says Marshall Gobuty, developer and majority owner of Mirabella, a 55plus community under construction in Bradenton, Fla. To that end, Mr. Gobuty and other developers are increasingly pursuing so-called LEED certification, an official stamp of approval from the U.S. Green Building Council that says a building or development meets the council’s Leadership in Energy and Environmental Design standards. Certification requires meeting a list of conditions including proximity to transportation, water efficiency, energy usage and sustainable materials. Mirabella has received LEED certification for all of the 90 villas it has built so far (out of a total 160 to be built.) Energy-efficient features in the villas include LED lighting, double-pane vinyl windows and extensive insulation. For the last 25 homes to be built, there also will be a community charging station for electric vehicles and solar panels. Mahesh Ramanujam, president and chief executive of the U.S. Green Building Council, says he has seen a steady uptick in 55-plus communities seeking LEED certification in recent years. Last year, 24 developments received LEED certification, and 16 are already in the process so far this year, he says. Mr. Ramanujam says his group expects that the number of projects being certified will double each year over the next five years. LEEDcertified projects see an average 25% reduction in energy costs, says Mr. Ramanujam. At Mirabella, Mr. Gobuty says LEED certification has added 12% to 14% to each certified home’s cost. But, again, in the company’s view, that extra cost pays for itself. All but 22 of the project’s planned 160 villas have been sold. Ms. Halpert is a writer in Michigan. Email her at email@example.com. The Wall Street Journal would like to thank the sponsors of Women In Finance 2018 for their generous support. LO & SONS For more information about our Women In series, please visit WomenIn.wsj.com. © 2018 Dow Jones & Co., Inc. All rights reserved. 3DJ6476 . R6 | Monday, April 23, 2018 * *** THE WALL STREET JOURNAL. JOURNAL REPORT | ENCORE Many in Middle Age Have Arthritis, but Don’t Know It IT MAY START as a stiff knee, soreness in the hips, or swelling in the fingers that makes it hard to hold a coffee cup. The joint disease arthritis is on the rise in the U.S., driven largely by the aging of the baby-boom generation and the obesity epidemic. But while the Centers for Disease Control and Prevention estimates 54 million adults have been told by a doctor they have the condition, new research suggests a much higher prevalence—especially in the 45-64 age group—totaling more than 91 million adults. A study published in February in Arthritis & Rheumatology says relying on data about doctor-diagnosed arthritis alone may miss almost half of cases in a younger population who may see doctors less often or ignore occasional joint symptoms. Factoring in other data, including adults who report chronic joint symptoms lasting longer than three months but don’t get a diagnosis, “it became clear that this is a more prevalent disease and more commonly disabling than we thought before,” says study coauthor Dr. David Felson, a rheumatologist at Boston University. Charles Helmick, scientific lead for CDC’s arthritis program, declines to comment on the study, but says CDC stands by its surveillance methods, which project 78.4 million adults with arthritis by 2040. Joint pain could be a symptom of something else, he says, and a doctor’s diagnosis is “a better measure of true arthritis.” What experts agree on is a dire need for better care for arthritis, a leading cause of disability and joint-replacement surgery. “People minimize the impact of arthritis because it is not a killer disease, but it has major effects on the quality of life and the ability to work and do the things you want to do,” Dr. Helmick says. Exercise and diet New CDC data shows arthritis prevalence ranges widely among states, from about 17% of adults in Hawaii to about a third in West Virginia. CDC is funding programs for those most in need, including initiatives to get doctors to steer patients to exercise and weight-loss programs. In a continuing 25-year study of non-Hispanic white and African-American adults in Johnston County, North Carolina, researchers found a higher rate of arthritis than previously thought in AfricanAmericans. Due to a growing Hispanic population in the county, they will be included in the study going forward. “Any level of symptoms where it is impacting activity or function should be brought to a doctor’s attention because there is something they can do about it,” says Amanda Nelson, co-principal investigator of the study and assistant professor of medicine at the University of North Carolina Chapel Hill’s UNC Thurston Arthritis Research Center. Studies show adults with arthritis can reduce pain and activity limitations 40% with exercise and other management strategies, yet 1 in 3 is inactive. According to the nonprofit Osteoarthritis Action Alliance, which is launching an online education campaign this month, StandUp2OA, only half of patients with arthritis report that their health-care provider recommended physical activity and only 41% of overweight patients had a recommendation from their doctor to lose weight. “People worry that exercise is going to exacerbate their arthritis, when it’s exactly the opposite,” says Leigh Callahan, an epidemiologist at the UNC Thurston Arthritis Research Center and director of the Alliance, which was started by the Centers for Disease Control and Prevention and the nonprofit Arthritis Foundation and has its headquarters at UNC. Moreover, she says, because many people with arthritis also have diabetes and heart disease, exercise has important benefits for other conditions. Arthritis can be diagnosed with a combination of a physical exam, history-taking, Xrays and lab tests. There are 100 types of arthritis, and it’s important to rule out inflammatory forms such as rheumatoid arthritis, in which the immune system mistakenly attacks the joints, producing symptoms such as red, warm or very swollen joints. The disease causes bone erosion and joint deformity. It also can damage skin, eyes, heart, lungs and blood vessels. Prescription drugs for rheumatoid Don’t just sit there Research has shown that a rigorously monitored program combining exercise and weight loss of 10% of body weight can improve arthritis symptoms. The problem, Dr. Callahan says, is that most doctors with arthritis patients have no practical means to provide such programs. She is now coleading a study with more than 800 overweight or obese arthritis patients over 50 years of age in three North Carolina counties to test whether a community-based, intensive 18-month diet and exercise program can serve as a blueprint for urban and rural communities to improve outcomes for arthritis patients. Dianne and Lennie Rosenbluth, who both suffer from arthritis, agreed to serve as honorary co-chairs of the Os- teoarthritis Action Alliance to spread the message through regular blog posts about how to live with arthritis. Both say their joints cause them pain and fatigue, but regular exercise has become a vital part of their regimen. Mr. Rosenbluth, 85, is a 1957 UNC college basketball champion, and later played professionally and coached the sport. Years of pounding on the basketball court took a toll on his knees, he says; he now gets regular cortisone injections and has avoided the need for knee-replacement surgery. ‘We do our thing’ Though climbing stairs and standing for a long time can be hard, he and his wife walk with their dog, go to the gym, and travel frequently to games and to visit grandchildren. “We go out and we do our thing, we just go a little slower,” he says. Mrs. Rosenbluth, 75, says her parents both had osteoarthritis, and she was diagnosed in her early 60s. She had two hip-replacement surgeries, three years apart. In addition to the gym and dog-walking regimen, she takes two ibuprofens in the morning to help her get moving. “Arthritis starts in your joints, but it is also in your head,” Mrs. Rosenbluth says. “You have to make the decision that you are going to get up in the morning and move, and not be defeated by it.” Ms. Landro is a former Wall Street Journal assistant managing editor. Email her at firstname.lastname@example.org. Weight Training for Thinning Bones SECOND ACTS The common advice for those with osteoporosis could be all wrong TRAVELING THE WORLD, RENT-FREE BY LAURA JOHANNES ALAN HOGAN Living on a limited income, Faith Coates and Faith Coates her husband, Alan Hogan, Age: 58 have spent the past two Hometown: No permanent years dividing their time address among homes in Tipperary, Ireland; Sonning, Eng- Primary career: Marketing and business consulting land; Palomares, Spain; and Paphos, Cyprus. Current path: International The homes aren’t their house- and pet-sitter, blogown. Nor are they rentals. ging and consulting The couple, formerly of Why this path: “The freeLondon, Ontario, are indom from consumerism is so ternational housesitters. liberating. I haven’t bought a Ms. Coates and Mr. Hodecorative item in years.” gan book long-term stays in homes free of charge in return for looking after the property, and often pets. Over the past 18 months, they have lived in the village where George and Amal Clooney and British Prime Minister Theresa May have houses, they have enjoyed views of rural Ireland and the Mediterranean, and they have cared for 25 dogs, eight cats, four tortoises and two horses. “I never thought I would have the money to do this much travel,” says Ms. Coates, who is 58. “We’ve gotten to see places we never would have had the opportunity to in a million years.” The couple dreamed about living abroad for years. They got the push they needed when Mr. Hogan, now 59, retired from his job as a letter carrier in 2014. Ms. Coates followed suit the next year, retiring from a long career in marketing and business consulting. Next, the couple sold their house and all their major belongings and moved to Chelem, Mexico, where, in a rented a house on the Gulf Coast, they set to work planning their new lives—as international house- and pet-sitters. They found their first few gigs on websites where homeowners and pet owners post listings looking for long-term sitters. For June and July of 2016, they found themselves back in Ontario, taking care of a shepherd mix named Oliver in Toronto. But after that they headed to Tipperary, where for two months they lived in a home with views of the Irish countryside while they looked after seven rough collies. Ms. Coates and her husband live rent-free with no mortgage or utility costs. Mr. Hogan has his Canada Post pension, and Ms. Coates earns money from advertising on her blog, xyuandbeyond.com, freelance writing and consulting, marketing and Web-services work. The couple expect to stay on the move for the foreseeable future, even if they decide later to set down roots. After two weeks in Donegal, Ireland, she says, she and Mr. Hogan decided they would like to eventually end up there permanently. “It’s stunningly beautiful,” Ms. Coates says. —Julie Halpert Leigh Callahan, at right, walking with arthritis patient Dianne Rosenbluth, is studying possible community-based arthritis help. arthritis include powerful biologic medications sold under brand names Humira and Enbrel, which act on the immune system to slow the disease. The majority of cases are osteoarthritis, which means degeneration of joint cartilage that leaves bones rubbing together. It can be caused by normal wear and tear, or trauma such as sports injuries. Hereditary factors are at play, as is weight gain; two-thirds of obese adults will develop knee osteoarthritis. Over-the-counter anti-inflammatory medications such as ibuprofen can help with arthritis pain, and doctors may prescribe a related drug, celecoxib, which has been shown to have fewer intestinal side effects. CLARE TUKE never considered herself athletic. But when thinning bones from osteoporosis led to a series of vertebral fractures, she searched the Web for a remedy—and found a local scientist-run clinic proposing a regimen of strenuous weight training. At first the idea of lifting heavy barbells was “absolutely terrifying” given her fragile bones, says Mrs. Tuke, a 54year-old nurse from Brisbane, Australia. But a year after beginning a twice-a-week routine, Mrs. Tuke says a recent scan shows her bone density is “going in the right direction,” and she loves how much stronger she feels in daily tasks, such as opening jars. The Bone Clinic in Brisbane, where Mrs. Tuke trains, is at the forefront of a growing movement that promotes highintensity lifts—such as dead lifts and squats—for women with thinning bones. A study of 101 postmenopausal women at the clinic, co-published with researchers at nearby Griffith University, found high-intensity weight training and jumping increased lumbar-spine bonemineral density nearly 3% over eight months, compared with a loss of 1.2% for a control group of women who did low-intensity workouts. Benefits debated The study participants, of which 44% had osteoporosis and the others thinning bones, suffered only one injury—a minor back strain, according to the study, published in the Journal of Bone and Mineral Research in February. The results have caused both excitement and controversy in the medical community, where enthusiasm for the bone-building benefits of pumping iron has long been tempered by safety concerns. The latest data, some scientists say, call into question common advice to women with osteoporosis to avoid anything that could stress fragile bones—even lifting a heavy grocery bag. “This study and others will create movement in the direction of more high-intensity training,” says Felicia Cosman, professor of medicine at the Columbia University College of Physician and Surgeons in New York. A decade ago, it was common to suggest medications, which prevent bone loss and help build mass, for healthy women with osteopenia, in which bones are thinning but not enough to be classified as osteoporosis, says Dr. Cosman, a paid consultant to companies that sell the medications. Exercise and weight lifting is now the “gold standard” for those women, she says. Medication may still be necessary in some cases. Guidelines published in 2016 by the American Association of Clinical Endocrinologists “strongly recommend” medications for women at high risk for fractures, or who have already had them. Half of all women and one-quarter of all men over 50 will have a fracture caused by osteoporosis over their lifetimes, according to the National Osteoporosis Foundation. It’s long been known that stressing bones through exercise can help stimulate their growth. But many physicians have shied away from recommending weight training to women with fragile bones, in part due to safety concerns. Over the past decade, however, the medical establishment has become more bullish on weight lifting for women who have osteopenia, though not full-blown osteoporosis. The Australian study showed unusually good results in women with both osteopenia and osteoporosis--which scientists say was likely because the workouts were particularly intense. Not everyone is able or willing to lift at that level. But Dr. Cosman and other specialists agree there typically are benefits from less-intense lifting as well, even in cases where, as often happens, the result is mainly to stave off decline. “The real win is to maintain current bone-mineral density in the face of the losses that typically happen with aging,” says exercise physiologist Robyn Stuhr, vice president of the American College of Sports Medicine’s Exercise Is Medicine initiative. Scientists say the Australian findings—particularly the surprisingly good safety record— need to be replicated by other scientists before being put into practice. The safety record is due to a supervised program emphasizing good form, says study co-author Belinda Beck, a professor at Griffith and coowner of the Bone Clinic, which is licensing its program to physical therapists. In addition to the back strain during the study, there have been two fractures in WHITNEY CURTIS FOR THE WALL STREET JOURNAL BY LAURA LANDRO UNC THURSTON ARTHRITIS RESEARCH CENTER If more people were diagnosed, doctors might be able to help relieve their symptoms Sharon Schneeberger, 74, has seen improvement with lifting. 7,000 training sessions at the clinic, Dr. Beck says. One participant entered the workout space before the trainer arrived, fell and broke her wrist. Another, sharing a barbell with a stronger woman, lifted too heavy for her own ability and broke a vertebra, she says. Safe practices To be safe at the gym, it’s best to build core strength, balance and flexibility with basic exercises before attempting more difficult lifts, says Jason Cruickshank, an athletic trainer and certified strength and conditioning specialist at Cleveland Clinic Sports Health in Ohio. People with osteoporosis also need to be careful with twisting—making sure to hold weights close to their body, and avoid bending forward with a rounded spine, he adds. Bone building happens specifically at the areas of the bone you stress during your workout, says Pamela S. Hinton, associate professor of nutrition and exercise physiology, at the University of Missouri, in Columbia. For this reason, a dead lift is one of the best exercises because it “uses big muscles around the hips and hamstrings,” causing the muscle to pull on the bone. It also recruits the muscles around the lumbar and thoracic spine to stabilize the body during the lift, says Polly de Mille, exercise physiologist at the Women’s Sports Medicine Center at the Hospital for Special Surgery in New York. Proper form is critical to safety, she adds. Sharon Schneeberger, a 74year-old retired college professor, started lifting about seven years ago at Optimus The Center for Health in Columbia, Mo., after a scan showed thinning bones. After a couple of years of lifting, plus taking low-dose estrogen in a patch, her bone scan showed a slight improvement, she says. Her last scan, about two years ago, found her bones about the same. Staying motivated can be difficult. Louise Miller, 68, a nursing professor who has improved her spine bone density over the past eight years with a combination of regular lifting and the osteoporosis drug raloxifine, co-founded a group at Optimus called Older Women on Weights, which adds a social aspect to the workout. “It’s hard to motivate yourself when you’re 68 and you’re stiff in the morning,” Dr. Miller says, “but you get up and go, and you know your friends are expecting you.” Miss Johannes is a writer based in Boston. Email her at email@example.com. . THE WALL STREET JOURNAL. Monday, April 23, 2018 | R7 JOURNAL REPORT | ENCORE SAN MIGUEL de ALLENDE 200 miles Gu l f of Mexico Goodbye, Jersey Shore. Hello, Mexico A couple spent three winters living in San Miguel de Allende. But it wasn’t enough. Festival Life Mexico City A sampling of the city’s cultural treasures 200 km EL GRITO BY ANN MAUZE DAY OF THE DEAD OCT. 31 -NOV. 2, 2018 Families joyfully honor their departed loved ones and share memories with ﬂowers, food, gifts and music in the cemeteries. LAS POSADAS DEC. 16-24, 2018 Candlelight mini-parades through the city celebrate Christmas, usually ending with a ﬁesta in someone's home. CANDELARIA Architectural treasures like the Parroquia de San Miguel Arcangel, a parish church, fill the town center of San Miguel, top. At right, a toy theater reflects the spirit of local annual Day of the Dead celebrations. FEB. 2, 2019 to $650,000 for a two-bedroom home. More spacious and elegant properties, both in the heart of town and the outskirts, can cost over $3 million. George and I live in a 15year-old, eight-room house built around a courtyard on a steep hill. It’s a brief walk to the town square. Our neighbors are a mix of American, Canadian and European expats, retirees from Mexico City and descendants of the first local landowner. Our home has a water-purification system, but no central heat or air-conditioning. In colder months, we may light a fireplace in the room we’re occupying. From June until midSeptember, there are cooling showers most afternoons. Authors present their works and give keynote speeches, workshops. Tickets required. Market days On Saturdays, I go to an organic farmers market for herbs, vegetables and fruits. Every Tuesday there is a giant openair market with everything from prepared foods, fresh fish and electronics to yarn, cosmetics and appliance parts. Three supermarkets have greatly expanded the goods Growers ﬁll Benito Juarez Park with ﬂowers, plants and trees for sale. WRITERS CONFERENCE AND LITERARY FESTIVAL FEB. 13-17, 2019 ISTOCKPHOTO/GETTY IMAGES (2) LOTS OF PEOPLE want to retire to a beach. My husband, George, and I gave up the Jersey Shore for the Mexican interior 12 years ago, and we haven’t looked back. When friends asked us why we were moving to San Miguel de Allende, high on a desert mountain plain three hours north of Mexico City, it was easy to summarize: perfect weather, lots of cultural offerings, outstanding restaurants and a comfortable, gracious lifestyle. The lower cost of living was also part of our decision, though some of those savings are offset by inflation. But perhaps the biggest reason was that after each of the three winters that we rented here temporarily to see how we liked it, we spent the balance of those years yearning to return. And the magnetic pull was stronger every time. This hilly city of Spanish colonial masterpieces and cobblestone streets is recognized as a Unesco World Heritage site for its beautiful architecture and its history. Known as a colony for art, it is also where Mexico’s war of independence from Spain began, an event the city celebrates each September with breathtaking fervor. Fiestas are frequent throughout the year here, accompanied by music, dancing, parades and volleys of fireworks. Among San Miguel’s first U.S. expatriates were veterans of World War II who used the GI Bill to study art here and ended up staying. There are several schools for the arts today, and dozens of galleries and small museums for exploring the history and culture of Mexico as well. Roughly 160,000 people live in San Miguel and its surrounding patchwork of villages and country houses. There are gated communities outside the city, including two that offer golf, and smaller ones in the city itself. Nice houses in town, if not in the central historic district, range from $250,000 SEPT. 15-30, 2018 A two-week party that begins in the town square with the shout for independence. Parades, bullﬁght, music and ﬁreworks. SEMANA SANTA EASTER, APRIL 2019 Religious parades and colorful but solemn pageantry are part of celebrations before, during and after Easter Sunday. THE WALL STREET JOURNAL. available as well. A typical day for us begins with an American breakfast, news on cable and reading U.S. newspapers online. George then often goes to the gym, or to the croquet club where he gives clinics. He also often has meetings for community organizations in which he is active. As for myself, I might play nine holes of golf or paint in my studio at home, followed by luncheons, Mah Jongg with friends, or reading and needlepoint. We enjoy entertaining, and having household help readily available makes it easy. Our expenses fluctuate with the exchange rate, but groceries and household goods average about $1,000 a month; utilities, telephone and internet, SECOND ACTS ANDREW KORNYLAK FOR THE WALL STREET JOURNAL CHOCOLATE—AND A MISSION When Dan Friedman opened an upscale chocolate shop, he had more than profits in mind. He wanted to employ people with disabilities, including his son. Mr. Friedman, who is 65, divorced, and lives in Chapel Hill, N.C., has always been a high-energy entrepreneur. He launched his own music-publishing company in 1980 while touring with a band, and later started his own investment firm, which he juggled with part-time jobs in manufacturing and at a software startup in Los Angeles. He also has a habit of mixing business with social goals. Besides the primary goal of making money for investors, his investment company had a secondary mission of trying to revitalize communities going through difficult times. The company, for example, purchased run-down properties and lots and put them in the hands of people who wanted to fix them up, he says. Mr. Friedman began winding down the business and selling off its assets last summer. But he wasn’t getting ready to retire. His next business venture would be shaped by his experience raising his autistic son, Alex, who is now 27. Alex has a form of autism called hyperlexia. Children with hyperlexia have an advanced reading ability at the expense of their spoken-language skills. The Friedmans moved to Chicago for Alex to get help at a specialized clinic. Alex’s communication skills improved, Mr. Friedman says, but he still struggled with conversational language. So, last summer, inspired by others who employ people with autism, Mr. Friedman decided to open an upscale chocolate shop. “It was a combination of creating a job for my son and creating a job for other people Dan Friedman Age: 65 Hometown: Chapel Hill, N.C. Primary career: Business and investing Current path: Owner of Special Treats, a chocolate shop employing disabled workers Why this path: “Customers are very supportive. There’s a lot of hugging and saying ‘God bless you.’” like my son,” he says. The demographics of the neighborhood he chose suggested that a modest luxury item like premium chocolate would be in demand, and the nearest competitor was miles away. But most important, he says, was that it would create a positive environment for his son and other disabled workers. “People who come in to buy chocolate are in a good mood,” he says. Special Treats opened in Chapel Hill in August. Mr. Friedman and Alex worked together in the store. But within a few weeks, Mr. Friedman learned that his former wife, who is Alex’s guardian, would be moving to Idaho where she has family, and that she would be taking Alex with her. “I was crushed,” Mr. Friedman says. Still, he felt strongly about providing opportunities for other disabled workers and has kept the business going. In addition to selling chocolate, the shop has become a job-training site and internship opportunity for local specialeducation students. Mr. Friedman hopes to start selling gift items made by wounded military veterans as well. He expects to continue working full time at the shop for at least the next two years, and may open other stores in nearby locations. And when he’s ready to step back, he hopes to hand over managing responsibilities to someone young and enthusiastic who will continue to advance the store’s mission. Meanwhile, father and son remain close. In January, they met at a dude ranch near Tucson, Ariz., where they rode horses, something Alex has enjoyed since childhood. This summer, Mr. Friedman says they plan to do some riding and hiking in the Canadian Rockies. —Julie Halpert about $300, depending on usage. We pay income tax to Uncle Sam, but none in Mexico, though we do pay local property tax, which, at less than $1,000, pales compared with what we paid in New Jersey. While many expats choose not to have a car, we have a small SUV. We also have a small all-terrain vehicle that George uses to get around on days that I drive to the supermarket, dry cleaner, or the bigbox stores in nearby cities. Visas with benefits As registered residentes permanentes, we have a visa that permits us to travel in and out of Mexico anytime, as well as a capital-gains tax advantage when selling property. We also qualify for Mexico’s federally subsidized benefits for expats and citizens 60 or older, including discounts on prescriptions and half-price travel by bus or plane anywhere in Mexico. It’s possible to practically re-create one’s cultural life from back home, if so desired. I was president of the San Miguel Garden Club and of a book club. There are discussion groups, adult-ed classes, and plenty of people who like bridge and board games. There are English-speaking places of worship for people of all faiths. The public library has a variety of bilingual literary and tutorial programs. Many professionals from various fields have retired here, so we are fortunate to have talented actors in English-speaking theater productions, musicians, vocalists, dancers and published authors who lead workshops and seminars. Traffic in recent years has become an overwhelming problem due to an increase in tourism and a building boom. Also, I am not yet fluent in Spanish, so conversation is sometimes difficult. Nevertheless, many Mexican nationals speak enough English for us to communicate effectively using a mix of both languages. Service to others Life here is fulfilling also thanks to the service one can give to others. There are more than 100 nonprofits with missions that include education, water purification and health care for the poor. For as long as we have lived here, we have been involved with a children’s health-care agency that provides free and low-cost medical and dental care to more than 12,000 youngsters annually. As for our own health-care needs, they are evolving. We have evacuation insurance and full coverage with a provider in Houston. But we have no coverage in Mexico for private medical care. So if we need care here, we pay for it out of our own pocket. A year and a half ago, George had chest pains when exercising. San Miguel has a growing roster of physicians, three hospitals and a patientadvocacy service. After a battery of tests, a local cardiologist was adamant that George couldn't make the trip to Houston, so within 48 hours he underwent a stent implant in a hospital in Queretaro, an hour’s drive from here. The entire cost was close to $18,000. Not only was the medical care superb, but the hospital provided me with a bed in George’s room. Living here has given us an appreciation for the creativity and diligence of so many hardworking Mexicans. These people have enriched our lives and we are grateful to be a small part of theirs. Ms. Mauze is a writer in San Miguel de Allende, Mexico. Email: firstname.lastname@example.org. Research Finds Volunteering Can Be Good for Your Health BY DEMETRIA GALLEGOS IF IT IS MONDAY, you’ll find Phil Diamond in New York teaching photography to seniors. On Tuesdays he’s coaching small-business owners through a nonprofit. Other days, he helps in a photography class, mentors teens, visits homebound seniors and volunteers at a Harlem jazz museum. Mr. Diamond, 73, worked six days a week in the bridalgown business before retiring in 2009. He sees the 15 to 20 hours he now volunteers each week as necessary. “You have to interact with people,” he says, “or your brain really dries up.” His attitude tracks with emerging science about the health impacts of volunteering. A recent study of 2,705 volunteers age 18 and older from UnitedHealthcare and VolunteerMatch found that 75% of those who volunteered in the past 12 months said volunteering made them feel physically healthier. Slowing decline A much larger study—one involving more than 64,000 subjects age 60 and older from 1998 to 2010—has found results suggesting that volunteering slows the cognitive decline of aging. The author of that study, Sumedha Gupta, an assistant economics professor at Indiana University-Purdue University Indianapolis, used data from the long-running University of Michigan Health and Retirement Study to reach her conclusions. After dividing respondents into three categories—volunteers, nonvolunteers and individuals who switched back and forth—she found that an individual who is volunteering 100 hours a HEALTH ADVOCATES FOR OLDER PEOPLE U.S. MEXICO Teaching photography is one volunteering job for Phil Diamond, who says his volunteering efforts keep him in a “nice routine.” year scores on average about 6% higher in cognitive testing than a nonvolunteer. “The effect is significant. It’s consistent,” Dr. Gupta says. The study’s methodology controlled for variables such as a person’s initial health and took into account external influences that would force subjects to reduce their volunteering hours. Dr. Gupta also was careful to treat as separate issues the subjects’ emotional well-being and presence of depression. “If you keep everything else constant by putting in all these controls and following this individual over time,” she says, “we find that as people volunteer, their cognitive health scores improve. If they don’t volunteer, their cognitive scores decline faster.” The reasons behind volunteering’s boost to cognitive health, Dr. Gupta says, have to do with the unique characteristics of such activity. For starters, unlike paid work, there is a “different subjective well-being” or “warm glow” that a volunteer experiences from helping people. Volunteering is also unique “because it supplies mental, physical and social stimulation in one package,” Dr. Gupta says. “You have to move around, you interact with people, you think about activities.” Whereas doing a Sudoku puzzle offers one type of intellectual stimulation, she says, volunteers get all of these types of stimulation simultaneously. More is better Dr. Gupta’s advice to seniors is that if they’re well enough, they should consider volunteering, and if they’re already volunteering, they should consider devoting more time each week. The data showed cognitive benefits with as little as 2 to 2½ hours of volunteering each week, on average, she says. Mr. Diamond says his volunteering schedule keeps him in a “nice routine.” His only clear weekday is Thursdays, on which he recently decided to begin taking saxophone lessons. Ms. Gallegos is a news editor for The Wall Street Journal in New York. Reach her at email@example.com. . R8 | Monday, April 23, 2018 THE WALL STREET JOURNAL. NY / NE ADVERTISEMENT Property Guide To advertise: 800-366-3975 or WSJ.com/classiﬁeds ! " #$ % &$ ' () ' % *+# , ('% # - . / , # ' *+*+ # ** # * # / - 0 / 1 / 2' 3 & / , 4# &$ ' 25 1 6 6 / # " / 26 6 ;;; 1 K & 1 / # 3 , -1 / 3 1 " , 24 / $ 1 7 - 8 #9 1 ' - 5 1 :+ 3 % #6 ; %6;! *++< ( ; = , % 1 - %6; 1 1 > ? @ A ; @ ; B C A 4/ @/ % , ('% 0 / 7 # 0 ( D+E , ('% # # FGHD++ # FD:+*++ # 5 DE 8 FI:J # FH+ - / , ('% K & ; / ; ; ;! 5 A & HG HH## , $ , ('% , & 2 $ # $ 25 5 # L # 9 9 &M / ( / 3 , 2 , ('% 0 3 23 2 3 ! 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" #$%&'( !" # $ . THE WALL STREET JOURNAL. R10 | Monday, April 23, 2018 JOURNAL REPORT | ENCORE I Want to Downsize. But I Hate to Get Rid of My Stuff. A couple moving after 27 years finds it’s hard to let go of things they’ll probably never use again “WHAT ARE YOU doing?” my husband asked after finding me at the kitchen island staring sadly at a massive collection of baking tools, shortly before Christmas. I had spread out three muffin pans, two mini muffin pans, five pie tins in both metal and glass, and one Teflon-coated Bundt pan. “I don’t know why I can’t get rid of these,” I said. “I know I am never going to make a Bundt cake.” It’s a unique kind of personal reckoning: Moving out of your home after almost three decades can force you to confront every bad buying decision you ever made, your lack of organization, along with your bizarre outfit choices as you attempt to pack. But I’m also in the process of finding that moving and downsizing can feel like one of the best decisions ever made, because it’s a chance to redefine yourself after years of feeling stuck and isolated in the suburban wilderness. Most of our fellow emptynesters have already left our area, and our social life without children had disappeared. So spurred into action, we toured homes in Seal Beach, a much shorter work commute, and loved the first house we found. It seemed to be a mini version of our house—less than half the size—in a lively beach community. And the rent was way below our monthly mortgage payment. My husband, exhausted by his commute, and perhaps my state of mind, quickly decided we should sign the lease and sell our house as soon as possible. “It’s more like us,” he said of Seal Beach. “It’s our people. It’s dress down and Moving after so many years can force you to confront every bad buying decision you ever made. KATHELEEN HUGHES (2) BY KATHLEEN A. HUGHES Stop talking When my husband’s job recently took an unexpected turn, at age 64, we suddenly had a choice: If we stayed put, we could remain in the 4,080square-foot ranch house in Rolling Hills, Calif., the one we built from the ground up, agonizing over every last design detail. But then he would have a long commute. We were hesitating. “Stop talking about changing your life and just do it,” said my 24-year-old daughter, Isabel, with typical practicality. “You can’t keep talking about this.” See a video of the family downsizing in the online story at WSJ.com/retirementreport. Part of the problem was the walls of books in most rooms. walk to the coffee shop. We’re interested in ideas, not things.” But for two people who don’t consider themselves interested in things, the sheer act of packing—and tossing things—was now surprisingly daunting. The lease started in early January, but our progress was so slow that the rental sat empty, adding pressure. Part of the problem was admittedly the walls of books in most rooms. I have hung on to my college books even though the pages long ago turned yellow. I have shelves of Fodor’s travel books, some for countries that now have different names. If I was finally going to reread “The Denial of Death,” I would get it on Kindle. All closets, drawers and file cabinets seemed stuffed to capacity. Instead of tossing out-ofdate clothes, I had moved massive amounts of clothing into empty children-room closets, migrating the loads each season without wearing any of it. I was totally prepared for an office life I no longer have, completely ready to host par- ties I don’t host and attend parties I never get invited to. We finally just gave up—and moved, sort of. I hired movers and stuck brightly colored Post-it Notes on the few pieces of furniture I thought would fit in the rental. Then we packed up the few items of clothing we actually wear, the plates and cookware we actually use, a few rugs and our dog’s beds. Just like new! We love our new Seal Beach home. The smaller house with fewer things feels cozier. Instead of an empty-nester mom in the suburbs, I am now, well, an empty-nester mom near the beach. But it feels entirely different. Everything is new. We’re meeting neighbors and walking to new restaurants. But, of course, there’s a problem: A massive amount of stuff is still at the house we are planning to sell. I keep going back and forth, a 50-minute drive, but it’s always a deflating confrontation with the leftover things in the house. While I started by giving carloads of clothes, cookware and toiletries to local charities, I thought it might make the decision-making easier if I could sell some of the things on eBay. But in describing item after item, I kept writing, “Never worn!” and “Used only once!” while wondering if anyone out there would detect the embarrassing pattern. I sold about 60 items for more than $1,500, including 380 pounds of Olympic weight plates for $102.50, a neverworn pair of Not Your Daughter’s Jeans Lift Tuck for $26.25, and a turkey fryer, used once, for $59.99, local pickup only. My husband, meanwhile, seemed to be making rapid progress in packing books to donate to the library—but then I discovered he was simply packing my cookbooks. The detritus from all of his hobbies—the conga drum, the guitars, the model planes, the electronic chessboard—and all his books remain untouched. “In my mind, I’m still going to read them,” he said defensively of the books. My biggest problem is the family memorabilia. While I chronicled my efforts to scan my entire life in this newspaper a few years ago, I still haven’t been able to part with the originals—the boxes and boxes of family letters and photographs. It was mildly comforting to discover that most of our friends seemed to be muddling through the same process and were also short on practical solutions. “Here’s what you should do,” said a friend at the gym. “Hire packers, put everything in storage and if you haven’t gone to get anything in three years, throw it out.” That initially sounded like a terrible idea, but I’m starting to wonder. After watching us struggle, a colleague of my husband gave us “Goodbye, Things” by Fumio Sasaki, subtitled “The New Japanese Minimalism.” At first, I felt too busy downsizing to read it. Plus, it’s hard not to notice that many of these advice givers seem to be young, single guys. Of course they have just a few items in their closets. But after scanning the book’s “55 tips to help you say goodbye to your things,” I’m trying to apply No. 34: “If you lost it, would you buy it again?” That answer is so often no, and I never should have bought it in the first place. And it would be a resounding no to the very large painting of a big yellow chicken leaving Cuba, purchased impulsively in Havana. Moving forward here really means moving backward. My daughter just moved out of her tiny rental in Brooklyn. “Everything I own fit in a cargo van,” she said. “You get older and you add stuff. You only need one baking tin!” She’s right. But we have a long way to go in embracing the new minimalism. My husband just bought us a voiceactivated garbage can. “Tell it to open,” he said proudly. “Open!” I said. Nothing. “Open can,” he suggested. That worked. Now we just need to learn to put more in it. Ms. Hughes is a writer living in California and New York. Email firstname.lastname@example.org. 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