close

Вход

Забыли?

вход по аккаунту

?

The Wall Street Journal - April 23, 2018

код для вставкиСкачать
.
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 wsjcontact@wsj.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: wsj.ltrs@wsj.com
NEED ASSISTANCE WITH
YOUR SUBSCRIPTION?
By web: customercenter.wsj.com;
By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625);
Or by live chat at wsj.com/livechat
REPRINTS & LICENSING
By email: customreprints@dowjones.com
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.
We think it’s the world’s
‘smartest’ shirt.
of our graduated wheat-link necklace
delivers timeless elegance. The perfect
piece for adding sophistication to
any outfit and every occasion.
Special price
$79
Plus FREE
shipping &
returns
How to buy
Visit rohandesigns.com and enter U106 at the Basket Page
or call 800 334 3750 and quote U106
$
895
Plus Free Shipping
The price you see is the price you pay. Rohan pays the duty, and shipping is free on
orders of $75 or over. Your new Freelance Shirt will be shipped from the UK,
and should be with you within 7-10 business days. Imported.
18kt Gold Wheat-Link Necklace
18" length. 3⁄16" to 1⁄4" wide. Lobster clasp.
Ross-Simons Item #881009
To receive this special offer, use offer code: GLOW9
1.800.556.7376 or visit www.ross-simons.com/GLOW
This offer is valid on Men’s Freelance Shirt in Mallard Blue only (product code 05326).
This offer may not be used against a previous purchase and cannot be used in conjunction with
any other offer or discount. 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.
Afghanistan’s legislative
elections, originally scheduled
for 2015, have repeatedly been
postponed.
RAHMAT GUL/ASSOCIATED PRESS
Suicide Bombing in Kabul Kills at Least 52
The aftermath of Sunday's attack on a voter-registration center.
HAPPENING
NOW!
95 BG 50 GAS BLOWER
PICK YOUR
POWER
ONLY at Your Local STIHL Dealer
For a limited time, get great deals on fuel- or battery-powered equipment.
Plus, save BIG on our popular MS 170 chain saw. Don’t wait – hurry in
to your local STIHL Dealer today and take advantage of these savings
MS 170 | SPECIAL PRICE!
SAVE $20
NOW
15995
before they’re gone!
$
To find a Dealer: STIHLdealers.com
For product information: STIHLusa.com
/stihlusa
BGA 45 BATTERY BLOWER $
All prices MSRP. Available at participating dealers. ©2018 STIHL
$179.95 MSRP.
Offer valid on purchases between 4/16/18 and 5/27/18
at participating dealers while supplies last. Not
available in all markets. See dealer for details.
12995
STNUSAT019-22-140109-2
139
$
.
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.
To your feet, it’s an all-day festival of
lush, leather-lined comfort. But let’s
keep that confidential.
Can’t hear dialogue on TV? You’re not alone. Today’s TVs
have tiny speakers with weak sound. Our new AccuVoice®
Speaker uses advanced computer algorithms to lift voices
out of background sounds. Dialogue is incredibly clear, even at
low volumes. Only 17" wide, it fits anywhere. Hookup is simple –
one connecting cord. Room-filling home theater sound, with
the clearest voices we’ve heard on any speaker, at any price.
“Great for folks who have trouble hearing the TV.”
Great Sound. Made Simple.
800-291-4349
30-Day Home Trial | Free Shipping | zvox.com
Free shipping and returns. Order online or call 844.482.4800.
® ZVOX & AccuVoice are registered trademarks of ZVOX Audio.
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 • ws@rauantiques.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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
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
$65. But sales fell flat, hurting
results for a string of quarters.
—Saabira Chaudhuri
.
THE WALL STREET JOURNAL.
Monday, April 23, 2018 | B5
.
THE WALL STREET JOURNAL.
B6 | Monday, April 23, 2018
BUSINESS & FINANCE
HNA Cuts Deutsche Stake
HNA Group Inc. has cut its
stake in Deutsche Bank AG to
7.9% from 8.8%, the Chinese
conglomerate disclosed Saturday, as it continues to unload
its overseas holdings.
This comes after HNA spent
billions of dollars in financing
and complex derivatives in
2017 to build its stake in the
struggling German lender, becoming Deutsche Bank’s biggest shareholder, with a holding of just under 10%.
Since that position was disclosed almost a year ago,
Deutsche Bank shares have declined more than 30%.
An HNA spokesman said
Saturday the company “decided
not to renew a part of the financing structure for our stake
in Deutsche Bank,” citing “the
current market environment.”
The stake cut was disclosed in
a regulatory filing.
HNA is still committed to remaining “a major investor in
Deutsche Bank,” the spokesman
said. The conglomerate had
previously said it didn’t have
plans to reduce its Deutsche
Bank stake.
A Deutsche Bank spokesman
declined to comment.
The Chinese company has
been selling off billions of dollars worth of real estate and
other assets after a global acquisition spree left it cashstrapped and pressured by
banks to reduce financing.
Deutsche Bank has been
dogged by consecutive full-year
losses and questions about its
investment-banking strategy.
MICHELE LIMINA/BLOOMBERG NEWS
BY JENNY STRASBURG
ADVERTISEMENT
Legal Notices
Nimble labor markets and an emphasis on high-value exports have buoyed the Swiss economy.
Strong Franc Fails to Sink
Resilient Swiss Economy
To advertise: 800-366-3975 or WSJ.com/classifieds
CLASS ACTIONS
!
"#$%&%'($()%*
!
!
!
++
, !
!
BY BRIAN BLACKSTONE
AND PATRICIA MINCZESKI
, -
.
-
/01! ++ 2 + +
#'3 ('#43
+, $3 ('#$3 53 ,
+, , -
- + * - / 01! - ,
, , 6 7 8 9 :; #<3 ('#=3 ='' 3 8> 8 * ?3
9 :963 9 > > > / 01!3 4@' 9 &3
3 >3 > ?? > 96 /#! 7 ??9 ? > 3 99
8; (#3 ('#= /0?1!3 > 6 > A#(@3'''3''' '' / 0 1! 9 8 ??&9 8; >3 83 9 9BC /(! 7 :96 9 8 9 8; C /"! 7 - > >3 83
9 9B 9 9 8 ??&9C 9 /4! 7 ?? 8; 9 9 9 > ;D > 9 E?
9 8 ??&9
6 & 8 F9 8> > & /9&9 9 ! 7 ?9 B9
968 G > 8 ##3 ('#4 6 +; $3 ('#$3 > 9 E6 > #<"4 /0E6
1!3 9 7 ?9 B9 968 G 96 ?9 > 8 #'3 ('#4 6 : =3 ('#@3
> 9 > #<"" / 0#<"" 1!3 9 7 969 8; /0 +81! # 99 9? > 63 96 ?3 9 9>3 9 ? > 8 ; 6 9 ? 99
> -9; 9 -?9 > /01!
63 9 9 9 9 7 B 79 666 ;D
> > 8 63 96 > 6 87 9 9 ->> 9 9 9
;D > 9 89 A#$3($@3''' /A#"3"")3"'' > 9 9 3 9 A(3<()3(''
> !3 ??E; #"H > +8 ?; 8 > ; > ;
E? /9 8 A$@'3''' > 6 E?3 9 A#3(@'3''' > 9 9 E?! &;
> 8 / >9 0 91! 9 8 A#'$3="@3''' /A#(@3'''3''' > >66
> 9 E?!
9 9 69 8> > 9 9 ->> 9 > & (' 6 (' >9 ?9 8; > 9>> F 8> > 9 9 ->>3 9 9 9>9 > 9 ?C ?&9 6 E 7 F 8 FC 99 6 ##@ > >9D 89
#@4 >F& 9>C 69 ? 9&; 3 96 & # ?6 > 99 &9 > 3 93 > 93 89 9 76 9 9 6 97 >9 9 &
7&9 ;% ?&6 9 > 79 9 8 3 9 ? > ; 9 9 ?&6 79 & 8 >&8 97 >9 9 9 89 9 ;I9 & " ( ?6 > 9 > >9 9 & @''3''' ?6 > 9 > 9 ? 99;3 9 9 &7
9 9 ->>D ?9 >9 > & (4'3''' ?6 > 93 9 9>99 9 9 ->>D ?&D
9? 9 9 9?9 7 9>9 /9 * > * 6 3 3 9 : G > * J 3 ! 93 7 93 9 993 >9 ??3 9 7 ??6 G (' 99
> 7 9? / 6 3 8; ((3 ('#= > 9%?; ?C + #43 ('#= > 9>9 C ? #"3 ('#= >
9%?; J ! - 9 9 ->>D 6 7 9 9 3 7 &79
? ??6 9 9 3 9 9 7 & ; ? > ; > 3 9 8
> ; > E?3 8 &; > 9 9 ->> 9 9 99 E& 7G 8> > 8 7 9 #<"" & 7 ; 7G 993 6 63 96 ?% &6C F6 ?
6 (' >9 8; ($3 ('#$ / !C 9>6 >9D ; ;C
96 E& 9&; > >9 9 ; 86 /9 8B; &76! & )''3''' ?6 > 9
? B 9 9 9&; 6 9 %?&9 9&; >C 9>6 F& ? 9
/ 9! ->>D ?C >; 86 F > 3 & >9D ??3
> /6 > 8 7 #<"" ! : ('#)C 9 ??9 6 >3
9&; >3 9 E ? 6 8> 9 ??9 /7 9 9 ! 9? > ? 97 >9 93 7 93 9 ??9 9? & 9 ?;
7 7 0? BF91 ?& > 968 ? 9 9 969 ?
& - (@(' ("'! 9 69 ?&D ? >9D 9&;
B3 9 9>99 > 9? 9 7 > ?? > 9 9
? 7 :96 ? 9 ??9 3 9 > ?9 / 7 96 E?! > 8 7 #<"" 7 >6 ??9 - > G 9 9 3
9 D 8; & ; ;D > 8 > E? 8 >; 6 ? > &; 8> > 8 ?; > -> > 9 > /0-> > 9 1!3 & 78
777 968 7 3 93 K 9 J 3 - E 4'4'4#3 &3 2, 4'(""%4'4#
6 ?; > 93 ; 8 -> > 9 8; 3 ; 3 86 ; 9 &; 8 ; ->
> 9 8; : (@3 ('#=3 7 8L ; ?8 L 9 ; ?9 ; > &6 ; ?; >
> ; +8 9 9 E9 ;> 8; 993 ; 7 8 89 8; 9 ; L96
9 63 7 ; 8 -> > 9 8 E99 > 3 ; 8 7 B > E 9 7 +8 7 9 ; E9 & 7 8 89 8; /6 ??&9 8; ! & > ; 9 8 ; -> > 9 8L ; ? > 3 96 - > 3 ?? > ;D > 9 E?3 ;
8 7 8L 9 7 > > ; 8L3 8
7 8 68 > ?; > 3 ; 8 ; -> > 9 > ; & ; B
8 3 ; ; 9 9 9 >76 99
+
J * 9 : -
$@@ * 97;3 #<''
63 <(#'#
9-M697 N3 , *3
* 9G
("' -G &3 #) 7 ,G3 , #'#$<
3 -
J +
,3 +G +?;
? >F =4' + 93 (''
63 <4'#'
+ ($3 ('#=
, #
?I9 9 7 9F9 & 6 ?&99 ?3 7 &8 783 777 968 CLASS ACTIONS
!
" #
$
% % &'( ')& *% !+##, ###
-./).'01 1* '234*/03' *(& *4 3532 /*6&(./&
&613*0 !7 '0( '0 /(&/ *4 18& *./1 18'1 18& '9*5&#6'-13*0&( '613*0 8') 9&&0
-/*53)3*0'22: 6&/13;&( ') ' 62')) '613*0 '0( 18'1 ' )&112&<&01 4*/ =7 8') 9&&0
-/*-*)&(% 0(&/ 18& -/*-*)&( )&112&<&01 18& )&112&<&01 '<*.01 <30.) '0: *./1#
'--/*5&( '11*/0&:)" 4&&) 306&0135& '>'/() &?-&0)&) 0*1 1* &?6&&( =!% '0(
'(<303)1/'135& 6*)1) '--/*?3<'1&2: =% >322 9& (3)1/39.1&( *0 ' -&/ )8'/&
9')3) 1* 2')) &<9&/) >8* *>0&( )8'/&) *4 .2)& 6*<<*0 )1*6@ 3<<&(3'1&2: -/3*/
1* 18& 13<& 18& &/A&/ 9&6'<& &44&6135& *18&/ 18'0 *0& )8'/&8*2(&/ 18'1 -/&53*.)2:
/&2&')&( 31) 62'3<)% 8&'/30A >322 9& 8&2( 9&4*/& 18& *0*/'92& 368'/( % % 1/'.))
30 18& '0 3&A* *.01: .-&/3*/ *./1 (&-'/1<&01 + '1 !! &)1 /*'(>': '0
3&A* , '1 , *0 B.2: + 7 1* (&1&/<30& >8&18&/ 18& -/*-*)&(
)&112&<&01 )8*.2( 9& '--/*5&( 9: 18& *./1 ') 4'3/ /&')*0'92& '0( '(&C.'1& '0( 1*
6*0)3(&/ 18& '--236'13*0 *4 2'301344)" *.0)&2 4*/ '11*/0&:)" 4&&) '0( /&3<9./)&<&01 *4
&?-&0)&) '0( 306&0135& '>'/() 4*/ 18& 0'<&( 2'301344)%
$
% $ $
% *. <': *91'30 6*-3&) *4 18& /*-*)&(
&112&<&01 *4 2')) '0( &/35'135& 613*0 ' (&1'32&( *136& *4 /*-*)&( &112&<&01
18& *136& '0( 30)1/.613*0) 6*06&/030A :*./ /3A81 1* '--&'/ '0( *9D&61
1* 18& -/*-*)&( )&112&<&01 */ '>'/( *4 '11*/0&:)" 4&&) 9: 53)3130A 18& >&9)31&
811-EE>>>%68**)&A6A%6*<E6')&)#304*E-.2E */ 6*01'6130A 2'301344)" *.0)&2
LEGAL
NOTICES
ADVERTISE TODAY
(800) 366-3975
sales.legalnotices
@wsj.com
For more
information visit:
wsj.com/classifieds
/*()@: F <318 110 5'0 B% <318
,, 32)83/& *.2&5'/( .31& ,
&5&/2: 322) ,
7++#! #,
&)<318G9/*()@:)<318%6*<
) (&)6/39&( <*/& 4.22: 30 18& *136& :*. 0&&( 0*1 ;2& ' >/311&0 *9D&613*0 30 */(&/
1* *9D&61 '0( <': '--&'/ -&/)*0'22: 1* <'@& '0 */'2 *9D&613*0% 0 18& &5&01 18&/& 3)
' >/311&0 *9D&613*0 31 )8'22 9& ;2&( >318 18& *./1 '0( )&/5&( .-*0 2'301344") *.0)&2
'9*5& B.2: + 7 */ B.2: ! 7% ./18&/
304*/<'13*0 <': 9& *91'30&( 9: 6*01'6130A 18& 2'301344)" *.0)&2 23)1&( '9*5&%
%
: /(&/ *4 18& *./1
© 2018 Dow Jones & Company, Inc.
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: heard@wsj.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
reports@wsj.com.
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 askencore@wsj.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 reports@wsj.com.
THE JOURNAL REPORT
For advertising information
please contact Katie Vanderhoff
at 212-597-5972 or
journalreports@dowjones.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
wsjshop@wsj.com 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: customreprints@dowjones.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: reports@wsj.com.
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 reports@wsj.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 reports@wsj.com.
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
reports@wsj.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 reports@wsj.com.
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
reports@wsj.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 reports@wsj.com.
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 reports@wsj.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: reports@wsj.com.
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
demetria.gallegos@wsj.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
! " ## # $ % # !' + %
3 2
2
2 $ # #
2#
3
!" #$
%&' ( &)*+,& ,*' -., /0* 1' 1! &&
!!"#$ " % " # %&'( # !" !!"" ! # ')&*'*+ ,- - ++ . - - / 0/ 1- !- !- 1 ! / 1
-1 /
/ 21 # -- - 1- / / , -1 , , / //1
- - 1- //1
- - 1 , -- - - , / , - //1
!! " #
$ $ % & ' ( % ) &%* )+, *&* +$$*-./ &*-, -* . . +$$*-./ . * $-+, +.+-0$ * .+ %1123313 ( !! " #
$ $ % % )
!! " #
$ $ % ) - - $ - /
/- 1
- , /
,,- # - 1 ,,- - , ,,- 1
#2 3-4 #2 5-
- - 61- 2- 1 ,,- - / 7(*'8 ''**&98: 9&(*&'8
.
THE WALL STREET JOURNAL.
Monday, April 23, 2018 | R9
NY / NE
ADVERTISEMENT
Property Guide
To advertise: 800-366-3975 or WSJ.com/classifieds
% & ' ( !1 ! "
# $ % & '
( ) !* + ! , $
-.
"
/ $ +
! 0
" !*
"
: : : : ': 3
; :< : :
: =
2 " & / 3
4 5 !6
, "
/ $ % & '
( 2 !' 1 & 78 * 9 " / / & 3
!
" : : :
#: : $ % : +
&
' ; % : +: +
:
! % : % : &
! ( 3 ' : : ! ) ! ';
: $ : : : % ! :
$ &
: : * :
:
' ! :
: => :
! :
.
R9A | Monday, April 23, 2018
THE WALL STREET JOURNAL.
NY / NE
ADVERTISEMENT
Property Guide
To advertise: 800-366-3975 or WSJ.com/classifieds
! " #$% % & %
'
" ' "
% ( %) %* + '
,
- . +
+ /
( 0 1/2 *$
$$ $#) 3 '
,
4
5
+ 6 +
0 7 -
(8 9) 12 * 3
5 /
% 8
% 45+ ,:;< ,
= , 4
6 >
? %9 6 / 9* %9
5/ ( % %*
" /
*& -
%%&
%&$
% ( " /
4
6
> , ,
-
@
- ! 0: " A/3 '
'8 9
. ;
+ - , ,
B C
+ .
; 9/ @
/
+
+ /
/
D '
E F (
G C
.
/
C
+
0 3 ,
F 0E D
9 7 H ( 7 D /
I " 7 0; (
( " ( / /
(
: " . +
+ J ( 5 /
3 , F , ,
. ;
+ ( " @
-
( , F F "
/( /
" C
+ /(
?
@
0 I
I
K
( 3 , F #$% "&'
. / 01 2 3 ! . 4 . 5 . # "
# $ % &
'
() * &
+ ,
- ! "
! "
() *
+,,,-+.-./ 0 1#'2 0 34.55 1 '!2 $) ) .,45/
! " # # ! $ %
# & ! ! ! '! &
& & & (& ) * + , & -- ./0 1 ! & & & & 2
2
3 ,! 4& -- , , 3 , & -- 5 6 //00 75./0
.
THE WALL STREET JOURNAL.
NY / NE
Monday, April 23, 2018 | R9B
ADVERTISEMENT
Property Guide
To advertise: 800-366-3975 or WSJ.com/classifieds
!"# $$%&
!
"! " #$ % & %
! "#$%$&'' () * + , +-.) /
0
/
1 /
** 0
/
1 0
1 ** 0
1 . . 2 . . 3 . . 4%5&
! " # $ %&
! ! ' ( $ )*) +$
!!! !! "
#$%&'(
!" # $
.
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 reports@wsj.com.
Retirement is years away but you can feel better now.
Knowing you’ve planned for retirement can bring less stress, more sleep, and true focus to what
matters now. TD Ameritrade’s Financial Consultants are here for you, whether it’s getting help with
a plan, rolling over your old 401(k), or opening an IRA. Feeling better about your future starts today.
Get up to $600 when you roll over an old 401(k) today.
Visit tdameritrade.com/planning to learn more.
A rollover is not your only alternative when dealing with old retirement plans. Please visit tdameritrade.com/rollover for more information on rollover alternatives. See tdameritrade.com/600offer
for offer details and restrictions/conditions. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. TD Ameritrade, Inc., member FINRA/SIPC.
© 2017 TD Ameritrade.
Документ
Категория
Журналы и газеты
Просмотров
262
Размер файла
22 571 Кб
Теги
The Wall Street Journal, newspaper
1/--страниц
Пожаловаться на содержимое документа