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The Wall Street Journal - December 29, 2017

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FRIDAY, DECEMBER 29, 2017 ~ VOL. CCLXX NO. 152
* * * * *
DJIA 24837.51 À 63.21 0.3%
NASDAQ 6950.16 À 0.2%
STOXX 600 389.54 g 0.3%
10-YR. TREAS. g 6/32 , yield 2.432%
OIL $59.84 À $0.20
GOLD $1,294.10 À $5.80
Business & Finance
oftBank won its bid to
buy a major stake in
Uber in a tender offer that
values the firm at $48 billion, a roughly 30% discount
to its recent valuation. A1
S
U.S. reinsurers are likely
to raise their rates after one
of the costliest years for
natural disasters, reversing
a decadelong decline. A1
Index funds have become
heavily weighted with tech
stocks as the sector surges,
prompting some investors
to trim their exposure. B1
ETFs have attracted
more than $465 billion in
new cash this year, shattering last year’s record. B11
FROM LEFT: SPENCER PLATT/GETTY; TONY DEJAK/AP; ANDREW HARNIK/AP
Now Is the (Bitterly Colder Than Usual) Winter of Our Discontent
What’s
News
South Korea is cracking
down on cryptocurrency
trading and could shut down
bitcoin exchanges as it tries
to curb speculation. B11
U.S. stocks edged higher
ahead of the final trading
day of the year. The Dow
added 63.21 points to close
at 24837.51, a record. B11
Initial jobless claims
held steady last week near
historically low levels, the
latest evidence of the health
of the U.S. economy. A2
Brazil’s government
voiced concern that talks on
Boeing’s possible takeover
of Embraer had gone ahead
without its knowledge. B3
EURO $1.1943
YEN 112.87
Islamic
State
Claims
Attack
In Kabul
BY EHSANULLAH AMIRI
AND CRAIG NELSON
o
Low* of
New York, N.Y.
11
7
o
Moreland Hills, Ohio
16
o
Washington, D.C.
Daily Temperature Range
St. Louis
Chicago
New York
Boston
40º
40 º
40 º
40 º
0
0
0
Normal
Apple apologized for its
handling of concerns about
the performance of iPhones
with older batteries following a wave of complaints. B1
A glut of gas from shale
fields is fueling a boom in
power-plant construction in
some Northeastern states to
replace aging coal plants. B1
HHHH $4.00
WSJ.com
Recorded
0
Sun. Mon. Tues. Wed. Thurs.
Sun. Mon. Tues. Wed. Thurs.
Sun. Mon. Tues. Wed. Thurs.
*All temperatures in photos are forecast overnight lows
Source: National Weather Service (5-day temperatures); AccuWeather (overnight lows)
Sun. Mon. Tues. Wed. Thurs.
THE WALL STREET JOURNAL.
SoftBank Grabs Uber Stake
Group led by Japanese
firm is set to acquire
about 18% of startup
at a steep discount
BY GREG BENSINGER
AND LIZ HOFFMAN
SoftBank Group Corp. won
its bid to buy a major stake in
Uber Technologies Inc. at a
steep discount to the company’s
previous valuation in a deal
that gives the world’s biggest
tech investor sway over the
most valuable U.S. startup.
Uber investors and employees tendered shares equal to
about 20% of the company in an
offer by a SoftBank-led consortium that values Uber at $48
billion—a roughly 30% discount
to its most recent valuation of
about $68 billion, people familiar with the matter said.
The group will end up acquiring slightly less: SoftBank itself
will own about 15% of Uber, and
other members of SoftBank’s
bidding group will get a stake of
around 3%, one of the people
said.
The tender offer—an open
call to buy shares in the privately held company—expired
Thursday at noon Pacific time,
meaning investors could have
changed their minds, potentially
affecting the final tally of
shares available.
Uber confirmed the deal
Thursday and said “we expect
to support our technology in-
vestments, fuel our growth,
and strengthen our corporate
governance.”
A SoftBank spokesman said
the company expected to close
the deal in January, adding that
“we have tremendous confidence in Uber’s leadership and
employees and are excited to
support Uber.”
As part of the deal, SoftBank
also plans to invest about $1.25
billion in Uber at the most recent valuation of about $68 bilPlease see UBER page A4
KABUL—Islamic State said it
was behind a suicide bombing
at a Shiite Muslim cultural center here Thursday that killed at
least 41 people, an attack the
U.S. military said showed that
battlefield setbacks are driving
the militant group to hit softer
urban targets.
The series of blasts at the
Tibayan Cultural Center and
the adjacent offices of a news
organization, the Afghan Voice
Agency, were the latest instance of the Sunni extremist
group sowing carnage in Kabul
neighborhoods mainly populated by Afghan Shiites, some
of whom joined Iran-backed
forces fighting against Islamic
State forces in Syria and Iraq.
Navy Capt. Tom Gresback, a
spokesman for the U.S.-led coalition in Afghanistan, said the
local affiliate of Islamic State
is operating in three of Afghanistan’s 34 provinces and
largely on the defensive, even
fighting with members of the
Taliban, another Islamist
group and the country’s largest insurgency.
“They aren’t gaining territory, but they continue to
conduct operations in a very
unpredictable manner,” he
said. “Today’s heinous, barbaric operation is the kind of
attack they’ve resorted to because they can’t win on the
battlefield.”
Islamic State, whose goal of
establishing a caliphate in Iraq
and Syria has been crushed in
recent months, has gained a
foothold in recent years in
Please see ATTACK page A6
World-Wide
Islamic State said it was
behind a suicide bombing
at a Shiite Muslim cultural
center in Kabul that killed
at least 41 people. A1
Fatal Fire in the Bronx
Helping China Make Movies:
Director of ‘Die Hard 2’
The IRS sparked confusion over the eligibility of
property-tax prepayments,
making localities scramble
to interpret the notice. A3
Harlin’s second act is helping Beijing be a bigger global force
BY ERICH SCHWARTZEL
Alabama certified Democrat Jones the winner of a
special Senate election, after a failed legal challenge
by Republican Moore. A4
Opioid deaths have declined this year in several
New England states, but officials caution that the crisis is far from over. A3
Reported sexual assaults
in the military are at a record high as the Pentagon
wrestles with a problem
only recently addressed. A5
Italy’s president dissolved Parliament and called
early elections, a vote likely
to highlight unresolved economic and political woes. A6
The retirement package
for Zimbabwe’s ex-President
Mugabe includes at least 25
staff, new cars and an eightbedroom residence. A14
A former soccer star
was declared the winner of
Liberia’s long-delayed
presidential election. A14
Frigid weather gripped a
large section of the U.S. from
the Midwest to the Northeast, setting records. A2
CONTENTS
Business News...... B3
Crossword................. A9
Heard on Street. B12
Life & Arts........... A8-9
Mansion............. M1-10
Markets............. B11-12
Opinion............... A11-13
Sports....................... A10
Tax Report............. B10
Technology............... B4
U.S. News............. A2-5
Weather..................... A9
World News...... A6,14
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
AMR ALFIKY/REUTERS
The turnover rate
among senior White House
officials reached 34% this
year, a level unprecedented
in the modern era. A4
TRAGIC TOLL: An apartment-building blaze took at least 12 lives
and critically injured four others on Thursday in what Mayor Bill de
Blasio called the worst such tragedy in a quarter-century. The
youngest victim was 1 year old and the oldest was over 50. A7A
HUAIROU, China—For the coming Chinese
action thriller “Bodies at Rest,” director
Renny Harlin pulled a move straight from his
Hollywood repertoire.
In the scene, a doctor and a medical intern
reunite after a harrowing night of fighting
criminals who broke into their morgue. Mr.
Harlin wanted the kind of dramatic reunion
that inevitably comes at the end of his movies, such as “Die Hard 2,” when the couple
runs toward one another and clings amid the
wreckage, as the music swells and the camera
spins around.
When the actors, Nick Cheung and Yang Zi,
filmed the hug, they embraced for only a split
second, as if they’d just finished a pleasant
Insurers Poised to Raise Rates
BY LESLIE SCISM
AND NICOLE FRIEDMAN
One of the costliest years
for natural disasters puts
some U.S. insurers in a position to do what they haven’t
done in years: raise prices.
The biggest rate increases
are expected from reinsurance
companies that could be asked
to pay more than half of all
claims attached to a string of
Atlantic hurricanes, Mexico
earthquakes, California wildfires and winter storms. Reinsurers, which essentially act as
insurers for other insurance
companies, absorb the risk of
some policies sold by primary
carriers and typically pay once
claims reach contractual, designated levels.
Property-catastrophe rein-
surance rate increases could
reach 20% for some clients in
hurricane-prone parts of the
U.S., analysts say. The price
increases are likely to mean
higher insurance premiums
for millions of people and
businesses in Atlantic and
Gulf Coast states because
many primary insurers will
seek to pass on the higher
Please see RATES page A2
Who’s Nuts for Fruitcake? Hikers and Other Athletes
i
i
i
Maligned dessert finds fans among those fed up with gorp
BY BETSY MCKAY
Another Christmas has gone
by and, once again, there are
uneaten fruitcakes.
That’s welcome news to Jack
Haskel, a long-distance hiker
who regularly carries slices of
the maligned dessert in his
backpack. “It is tastier and oh
so much better than an energy
bar,” says the 34-year-old trail
information manager in Sacra-
Fruitcake
mento, Calif., who buys fruitcakes during the holidays to
take on hikes.
Energy bars are “really sugary and have this sort of
amorphous texture,” says Mr.
Haskel. “And they’re always
making them in weird flavors
like Key lime pie or ice cream
sundae.” His mother mailed
him fruitcakes while he was on
a five-month hike from Mexico
Please see CAKE page A7
lunch and not an evening of bloodshed and
terror. Mr. Harlin was confused: Didn’t they
know what he wanted?
“You have to hold on to each other really
hard,” Mr. Harlin told the actors through his
translators. It took a couple takes, but they
got it.
“I felt a great victory,” said Mr. Harlin.
Best known as the director of big-budget
B-movies like “Cliffhanger” and the notorious
flop “Cutthroat Island,” Mr. Harlin moved to
the country in 2014 to direct a Jackie Chan
movie after his U.S. career stalled. He has
been working there ever since. In the intervening years, Mr. Harlin has become a dedicated—and unlikely—instructor in China’s
quest to make better movies and become a
Please see FILMS page A7
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A2 | Friday, December 29, 2017
THE WALL STREET JOURNAL.
U.S. NEWS
Higher Profile Awaits Fed Officials
BY MICHAEL S. DERBY
Two of the newest Federal
Reserve officials will step into
the spotlight in 2018 when
they assume voting seats for
the first time on the central
bank’s interest-rate-setting
committee, weighing how to
keep a buoyant economy on an
even keel in the new year.
One of them, McKinsey &
Co. executive Thomas Barkin,
starts his new job as Richmond Fed president Jan. 1.
The other, former Obama administration housing official
Raphael Bostic, became Atlanta Fed president in June.
Not much is known publicly
about their monetary-policy
leanings. Mr. Barkin doesn’t
have a public record of speeches
or articles on economic matters
such as labor markets, inflation
dynamics and interest rates.
Mr. Bostic’s public remarks
in recent months suggest he
likely supported the Fed’s decision to raise short-term interest rates this month but revealed no strong inclination to
Thomas Barkin; Raphael Bostic
lift borrowing costs more or
less aggressively in the future.
Gaining a vote on the ratesetting Federal Open Market
Committee doesn’t give the officials more influence on policy than their nonvoting colleagues, but it does provide a
higher-profile platform for
their views. Dissenters often
draw more media and market
attention than others and
highlight the breadth of debate among the policy makers.
Messrs. Barkin and Bostic
gain policy votes in 2018
through a complicated rotation
system. The FOMC comprises as
many as 12 voting members—
all the members of the sevenseat, Washington-based board
of governors and five of the 12
regional Fed bank presidents.
The governors and New
York Fed president always have
FOMC seats. The other four
slots rotate annually among the
other 11 bank presidents. However, all the presidents attend
and participate fully in the
FOMC’s meetings, whether or
not they are voting members.
The other two presidents
who become voters in 2018
are veteran Fed policy makers,
the San Francisco Fed’s John
Williams and the Cleveland
Fed’s Loretta Mester. Both
supported the central bank’s
three interest-rate increases in
2017 and are likely to favor
gradually lifting borrowing
costs in the year ahead.
Fed officials in December
raised their benchmark shortterm rate to a range between
1.25% and 1.5% and penciled in
three
quarter-percentagepoint increases in 2018.
Mr. Barkin and Mr. Bostic
will be taking their FOMC seats
at a time of unusual turnover
among the central bank’s leadership. President Donald Trump
has nominated Fed governor Jerome Powell to succeed Chairwoman Janet Yellen when her
term expires in early February.
Mr. Powell faces a smooth path
to Senate confirmation, and Ms.
Yellen plans to leave the Fed
board of governors once the
new Fed leader is sworn in.
The White House also is
considering candidates for
vice chairman and favors
someone with monetary-policy
experience. The role of vice
chair has taken on greater importance because Mr. Powell
had little background in monetary policy until this decade.
Two economists who served
in senior positions in the George
W. Bush administration, Richard
Clarida and Lawrence Lindsey,
have interviewed to serve as
Fed vice chairman, according to
people familiar with the matter.
Mr. Clarida is a managing director at money manager Pimco
and a professor of economics
and international affairs at Columbia University, while Mr.
Lindsey runs an economic-advisory firm in Washington.
Prepping for the New Year in Miami
Layoffs Level Off
Initial claims for unemployment
benefits, seasonally adjusted
Four-week
moving average
300,000
200,000
100,000
0
2017
Source: Labor Department via the Federal
Reserve Bank of St. Louis
THE WALL STREET JOURNAL.
Jobless
Claims
Remain at
Low Levels
JOE RAEDLE/GETTY IMAGES
BY BEN LEUBSDORF
ORANGE CRUSH: A worker installing the ‘Big Orange’ on Thursday at the Hotel Intercontinental in Miami, where it will begin ascending on New Year’s Eve and finish at midnight.
U.S. WATCH
TEMPERATURES
Frigid Weather Grips
Wide Swath of U.S.
Forecasters warned people to
be wary of hypothermia and
frostbite from an arctic blast
that is gripping a large section
of the country from the Midwest to the Northeast, where
the temperature, without the
wind chill factored in, dipped to
32 degrees below zero on Thursday morning in Watertown, N.Y.
In western New York state
and Erie, Pa., residents were still
cleaning up from massive snow-
RATES
Continued from Page One
prices. Some state regulators, however, may limit how
much homeowners will have
to absorb.
“They
are
demanding
more,” Morgan Stanley analyst
Kai Pan said of reinsurance
companies. “The industry, collectively, is serious about
needing better pricing.”
Widespread gains would reverse a trend largely in place
since the mid 2000s. Propertycatastrophe reinsurance prices
have fallen by about half since
2012, according to a recent
Morgan Stanley report.
The decadelong drop was
due largely to a period of few
major hurricanes. Another factor was the influx of capital
into so-called catastrophe
bonds and other investing vehicles that help insurance companies mitigate the risk of natural
disasters. Investors that purchase the bonds are paid relatively high interest rates but
can lose their principal if a hurricane or earthquake hits. Profits for reinsurers have fallen
along with prices.
The last time property-catastrophe reinsurance premiums jumped considerably was
in 2005, the year of Hurricane
Katrina. They rose again
slightly in 2011 and 2012 following earthquakes and floods
fall. Firefighters had to use a
bucket loader to rescue a resident trapped in her home in Lorraine, N.Y.
In Oregon, Ohio, a third
body was recovered near a car
that had slid off an icy road
and flipped into a canal days
earlier. In Toledo, a dog was
found frozen solid on the porch
of a house.
Cold weather records were
set Thursday from Arkansas to
Maine, and the cold air will linger through the weekend, reaching as far south as Texas and
the Florida Panhandle.
—Associated Press
in Japan, New Zealand and
Thailand, as well as superstorm Sandy in the U.S. But
then they dropped again.
Prices in 2017 fell to their lowest point in 17 years, according to a Guy Carpenter index
of global property-catastrophe
reinsurance pricing.
The U.S. property-casualty
industry entered hurricane
season this year with its fattest-ever cushion for absorbing losses. U.S. insurers had a
record $709 billion set aside
last spring, and global reinsurers had $605 billion.
By fall, those cushions
would be tested by three major Atlantic hurricanes and
two Mexican earthquakes that
caused between $66 billion
and $111 billion in insured
damage, according to current
estimates from catastrophemodeling firms. California
wildfires in October added another $9.4 billion in claims, according to the state’s insurance commissioner.
The damages from 2017
may end up being the costliest
ever for insurers. The global
insurance and reinsurance industry’s worst year previously
was 2011, when companies
paid out $126 billion in inflation-adjusted dollars, according to Wells Fargo.
There is some skepticism
that reinsurance prices can
rise enough in the coming
year to offset the decline over
the last decade. Any changes
OKLAHOMA
Death Chamber Is
Quiet Into Third Year
Oklahoma, a state with one
of the busiest death chambers
in the country in recent decades, will enter its third year
without an execution in 2018
while prison officials and state
attorneys review its procedure
for putting condemned inmates
to death.
Oklahoma Attorney General
Mike Hunter said last week he
was planning to meet with top
prison officials and that he ex-
pected more clarity on the
state's new lethal-injection protocols “in the next two or three
weeks.”
Republican Gov. Mary Fallin
said she has confidence in Mr.
Hunter and Department of Corrections Director Joe Allbaugh to
develop new protocols, but acknowledged the challenge the
state faces in acquiring the lethal drugs.
Of the 2,817 death-row inmates awaiting execution in 32
states, 47 of them are in Oklahoma, according to the Washington, D.C.-based Death Penalty Information Center.
A Costly Year
Global insurance losses from natural catastrophes
and terrorist attacks
Japanese earthquake,
tsunami; New Zealand
earthquake; Thai floods
$150 billion
World Trade Center,
125 other terrorist attacks
Hurricanes Harvey,
Irma, Maria;
California wildfires
Hurricanes Katrina,
Wilma
100
superstorm
Sandy
75
Hurricane Ike
50
25
0
2000
’03
’06
’09
’12
’15
’17*
*Projection
Sources: Wells Fargo; Swiss Re;
Insurance Information Institute
may also take some time to
flow through the industry. In
Florida, one state tested by
this year’s events, many insurers won’t renew their reinsurance policies until June.
“A lot of these natural disasters often take many
months, maybe years to manifest themselves fully in the
marketplace,” said Dean Klisura, a senior executive with
Marsh & McLennan Cos.’s
Marsh insurance brokerage.
Roughly half of Marsh’s
U.S. clients experienced property-insurance increases of
3% on average in the past
THE WALL STREET JOURNAL.
couple months, but some
with large catastrophe losses
this year are in the doubledigits, according to Mr. Klisura. To hold down costs,
the firm’s brokers are exploring renewal options for clients at least a month earlier
than usual, he said.
Other estimates for increases vary. Morgan Stanley
projects that U.S. property-catastrophe reinsurance prices
will rise 10% to 20% next year
for accounts that suffered
losses this year, compared
with 5% to 10% for others.
Wells Fargo predicts a boost
Like many death-penalty
states, Oklahoma has struggled
in the past decade to obtain the
lethal drugs used in executions,
as manufacturers, including
many in Europe, have said they
don't want their products used
to kill people.
Ms. Fallin said she is prepared
for executions to resume under
her watch once the new protocols have been approved.
Oklahoma put all executions
on hold two years ago after several mishaps, including a botched
lethal injection in 2014 and drug
mix-ups in 2015.
—Associated Press
of about 10% for catastrophe
reinsurance prices.
In California, fires could
lead some insurers to shrink
their presence in the state,
some analysts say, and that
could lead to higher prices for
homeowners and businesses
as competition lessens.
One factor that could depress any increase in reinsurance rates is continued appetite from investors for
catastrophe bonds and other
investment vehicles that
serve as reinsurance. These
investors likely incurred
losses during 2017 due to the
string of disasters. If they
continue to pour money into
the bonds and other vehicles,
it may be more difficult for
prices to rise.
“This was a pretty substantial test,” said Paul Schultz,
chief executive of Aon Securities. “We’re feeling pretty
good about the amount of capital that’s going to be available” for next year.
In a sign these investors remain interested, financial-services firm United Services Automobile
Association
in
November obtained $295 million of catastrophe reinsurance for its home-insurance
business through bonds issued
by an entity named Residential Reinsurance 2017 Ltd., according to Kroll Bond Rating
Agency. The coverage is for a
range of natural disasters
across the U.S.
The number of Americans
filing new applications for unemployment benefits held
steady last week near historically low levels, the latest evidence of U.S. economic health
as 2017 draws to a close.
Initial jobless claims, a
proxy for layoffs, were a seasonally adjusted 245,000 in the
week ended Dec. 23, unchanged
from the prior week, the Labor
Department said Thursday.
“This week’s claims data
suggest no significant change
in labor market conditions
from a month ago, and we
view them as consistent with
healthy labor markets,” Barclays economist Blerina Uruci
said in a note to clients.
The U.S. economy is ending
the year on firm footing. The
unemployment rate was 4.1%
in November, holding at a 17year low. Output growth was
solid in the second and third
quarters, and forecasting firm
Macroeconomic Advisers on
Thursday projected a 2.4%
growth rate for gross domestic
product in the fourth quarter.
“Household spending has
been expanding at a moderate
rate, business investment has
picked up and favorable economic conditions abroad have
supported exports,” Federal
Reserve Chairwoman Janet
Yellen said in mid-December.
“Overall, we continue to expect that the economy will expand at a moderate pace.”
Data on jobless claims can be
volatile from week to week, and
seasonal adjustments tend to be
especially tricky around holidays. Officials also had to estimate claims for more than a
dozen states in the latest report.
Weekly initial unemployment applications have now
remained below 300,000 for
147 straight weeks—the longest since 1970, when the U.S.
population and workforce were
far smaller than they are today.
CORRECTIONS AMPLIFICATIONS
Readers can alert The Wall Street
Journal to any errors in news
articles by emailing
wsjcontact@wsj.com or by calling
888-410-2667.
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Friday, December 29, 2017 | A3
THE WALL STREET JOURNAL.
U.S. NEWS
Opioid Deaths Decline in New England
Several states are
likely to record fewer
fatalities for 2017, but
officials are cautious
As the national opioid crisis
rages on, hard-hit New England is offering a glimmer of
hope.
Several states, including
Massachusetts and Rhode Island, are on pace to record
fewer overdose deaths in 2017,
compared with the year before.
This follows years of fastrising death tolls in the region,
which has long been a hot spot
for fatal overdoses. State officials say their efforts, ranging
from widespread distribution
of an overdose-rescue drug to
expanded treatment access,
are starting to bear fruit.
“It’s a ray of hope,” Gina
Raimondo, Rhode Island’s
Democratic governor, said this
month, while announcing a 9%
decline in accidental-overdose
deaths through the first eight
months of 2017. She was cautious about the numbers,
which declined to 208 from
227, adding “we’re not out of
the woods yet.”
In Massachusetts, authorities estimated a 10% decline in
opioid-related deaths through
September, compared with the
year-earlier period. New
Hampshire’s Office of the Chief
Medical Examiner has projected a slight decrease, and
preliminary figures in Vermont
indicate that state could also
trend lower.
Any sign of improvement
remains tenuous, and the
numbers—including an estimated 1,470 opioid-linked
deaths in Massachusetts alone
through the end of September—remain alarmingly high.
Declining fatalities also
don’t mean the addiction crisis
has abated. Massachusetts had
JOHN MOORE/GETTY IMAGES
BY JON KAMP
A counselor at a substance abuse treatment center last year in Westborough, Mass. Officials are using expanded treatment access and other tactics to combat the crisis.
found, for example, that overdoses there are increasingly
survivable, which the state
chalks up to widespread use of
the overdose-reversal drug
naloxone.
At the same time, policy
makers are fighting a crisis
that can evolve quickly as new,
synthetic opioids hit the
street. Some pockets of the
country are getting hit especially hard by carfentanil,
which is up to 100 times as
potent as fentanyl, challenging
efforts to halt a rising tide of
deaths.
Cuyahoga County, Ohio,
where drug deaths are trending higher in 2017, has seen at
least 128 carfentanil-linked fatalities this year, up from 56
last year, according to the
medical examiner’s office.
Still, the downward trend in
New England is a positive
sign, said Joshua Sharfstein,
who directs the Bloomberg
American Health Initiative at
Johns Hopkins University. “It’s
a bright spot,” he said. “The
overall news is pretty grim,
but it’s not all grim.”
The Centers for Disease
Control and Prevention recently said nationwide opioid
deaths rose nearly 28% to
42,249 in 2016. The annual
number of U.S. opioid deaths
has about doubled since 2010.
Dr. Sharfstein credited
states like Rhode Island, which
he has advised, for taking aggressive steps to address the
crisis. Measures there include
a screening program to spot
opioid problems among new
prisoners, and then offer them
medication-assisted treatment.
Another Rhode Island program
put peer-recovery specialists
in hospitals to guide overdose
patients to treatment.
Massachusetts efforts include widespread availability
of naloxone, while adding
treatment beds and putting
tight limits on prescription
opioids. Republican Gov. Charlie Baker is pushing new opioid-related legislation, seen
costing up to $152 million over
five years.
The New England states
aren’t alone in setting new
policies to fight the opioid crisis, but they sometimes lead
the pack. The National Conference of State Legislatures has
noted that Massachusetts was
first to pass a law putting very
tight limits on opioid prescriptions last year. By August this
year, NCSL counted similar
laws in 24 states.
West Virginia sees helpful
lessons in New England, State
Health Officer Rahul Gupta
said. He would like to expand
a peer coach program for
overdoses, modeled after
Rhode Island, to augment
steps West Virginia has already taken.
Preliminary numbers for
2017 indicate the crisis in
West Virginia, home to the
highest rate of drug deaths in
the nation per 100,000 people,
continues to worsen. “Unfortunately we have not yet
peaked,” Dr. Gupta said.
Colleges Lure Baby Boomers in Search of Second Act
Pat Collins has worked as a
therapist for 30 years and is
looking to reinvent herself. So
she has gone back to the place
where she invented herself the
first time—college.
“I’m not sure what I want
to do next,” said Mrs. Collins,
66 years old. “I’m able to retire financially. But I’m not
ready to stop working.”
Mrs. Collins is a fellow at
the University of Minnesota’s
Advanced Careers initiative,
one of many programs at
schools catering to baby
boomers looking for a second
act.
Schools like Harvard University and Stanford Univer-
sity pioneered the idea. University of Notre Dame will
start a new program in the fall
and many other schools have
expressed interest.
Adult students have been a
growing force at universities
for more than a decade—
mostly blue-collar workers or
those pursuing advanced degrees focused on getting new
skills.
The advanced career fellowships target white-collar workers paying sometimes hefty
tuition to take advantage of all
a major university has to offer.
“There are 10,000 baby
boomers retiring every day
and we need them; we can’t
let them just be on the sidelines,” said Phyllis Moen, the
University of Minnesota sociologist who started the fellowship program.
Universities can also use
the business, with some of the
Programs at Harvard
and Stanford often
attract attorneys and
c-suite executives.
programs charging tens of
thousands of dollars—and
most of the fellows paying full
freight.
A decline in the number of
high-school graduates is ex-
pected to continue sapping
university enrollments. In
early December, Moody’s cut
its outlook for the higher-education sector to negative from
stable, citing a failure of operating revenue to keep pace
with expenses.
Harvard
University
launched the first program in
2008 to direct accomplished
executives toward global problems. Fellows at the Advanced
Leadership Initiative pay
$65,000 and get free rein of
the campus to audit graduate
and undergraduate classes and
lunch with faculty.
The first class had 12 students; this year there were
48. Among the key components: the ability of boomers
Disarray Follows IRS Prepayment Rule
The Internal Revenue Service sparked last-minute confusion over the eligibility of
property-tax
prepayments,
making local governments
scramble Thursday to interpret the IRS notice with just
days left in the year.
Homeowners in high-tax
states rushed this week to prepay their property taxes to deduct them from their 2017 federal taxes before the new tax
law takes effect in January.
The Republican tax legislation
signed by President Donald
Trump on Dec. 22 caps the
amount of state and local tax
deductions to $10,000, which
could reduce the tax benefits
of homeownership.
The IRS poured cold water
on their efforts in an advisory
late Wednesday that said only
people whose local governments had completed 2018
property assessments could
prepay their real-estate taxes
and claim the full amount
from federal taxes before the
cap kicks in.
The announcement came after thousands of people across
the country had already paid
forward 2018 property taxes,
potentially putting many of
them in legal limbo.
In Fairfax County, Va.,
about 3,200 people had prepaid by Wednesday. Since the
CHIP SOMODEVILLA/GETTY IMAGES
By David Harrison,
Joseph De Avila
and Jennifer Levitz
Pitfalls to Avoid in
Paying Taxes Early
The IRS restricts when prepaid property taxes can be deducted.
county hasn’t yet set the tax
rate for next year, homeowners estimated what their
tax bill was likely to be, possibly putting them at odds with
the IRS notice. Officials are
evaluating the guidance, according to county spokesman
Jeremy Lasich.
Leslie Schneider, a partner
at the tax law firm of Ivins,
Phillips & Barker, said “there’s
a significant question about
whether the IRS is right.” A
good argument could be made
that property owners who prepay a 2018 tax bill and don’t
expect a refund could deduct
that amount from their federal
taxes regardless whether the
property has been assessed or
a bill issued, he said.
David Lifson, a certified
public accountant with Crowe
Horwath, said for homeowners
to receive the deduction, the
local government must have
calculated the 2018 tax liability and the payment must
have been made by the end of
the year.
The IRS didn’t respond to a
request to comment.
Local governments are taking varying approaches in interpreting when prepayments
can and can’t be deducted.
Some jurisdictions have said
they wouldn’t accept early payments for tax bills they haven’t
yet mailed out.
Washington, D.C., is accepting prepayment because officials there have completed
next year’s assessment even
though they haven’t sent out
any bills yet.
It’s a taxing time in the wake
of overhaul................................ B10
If you’re thinking of prepaying—or if you have already
prepaid—here are a few
things to keep in mind:
1. Check your tax-assessment dates
Make sure your local tax
office has assessed your
property for 2018.
2. Beware the AMT
Make sure that by prepaying your property taxes
you wouldn’t become eligible
to pay the alternative minimum tax.
3. Make sure your state
and local tax bill is high
enough
Try to determine whether
your total state and local tax
bill next year will exceed the
$10,000 cap that was added
to the law.
4. Speak with your mortgage provider
Many homeowners pay
property taxes through an escrow account set up by the
mortgage provider. Speak
with your mortgage company
first so you don’t pay twice.
5. Talk to a professional
Circumstances vary by
household and somebody well
acquainted with your situation is probably in the best
position to give you advice.
—David Harrison
and millennials to take classes
together and learn from each
other.
“There are only two segments of life that have the total freedom to think about the
great issues of social change,”
said Rosabeth Moss Kanter, a
professor at Harvard Business
School who helped create the
program. “Undergraduates and
people who may be at the end
of their middle years who
aren’t preoccupied with how
to make money or raise a family.”
Stanford’s
program
launched in 2015. Officials
liken it to a gap year for successful professionals wanting
some time to reflect before
they start something new. The
price point is similar ($65,000
per student—add $30,000 to
bring a partner or spouse).
Both programs attract a lot of
corporate attorneys, c-suite
executives and money managers.
Phil Pizzo, a medical doctor
and the founder of Stanford’s
program, said he has fielded
inquiries from 30 universities
in the U.S. and abroad about
how to establish a professional
fellowship.
“Since the 11th century, universities have focused on
young people,” Dr. Pizzo said.
“Now, with longevity being
what it is, we need to expand
the role to lifelong learning
and intergenerational learning
and teaching.”
©T&CO. 2017
BY DOUGLAS BELKIN
A TIFFANY HOLIDAY
800 843 3269
|
TIFFANY.COM
.
A4 | Friday, December 29, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
Under Trump, Turnover Ramps Up
Rate of departures
from White House hit
34% in the first year,
double next highest
NORTH KOREA
Trump Says China
Violates Sanctions
DREW ANGERER/GETTY IMAGES
BY ELI STOKOLS
President Donald Trump’s
first national security adviser,
Michael Flynn, was fired after
25 days on the job. Two highprofile campaign aides who
followed him into the White
House, Reince Priebus and
Steve Bannon, were gone before summer’s end. And his
third communications director’s tenure is still remembered around the West Wing
as “Scaramucci Week.”
Those are just a few of the
first-year departures from
high-level positions in the
Trump administration, which
has been marked by a level of
staff turnover unprecedented
in the modern era.
According to Kathryn DunnTenpas, a senior fellow at the
Brookings Institution who has
tracked White House turnover
rates over three decades, the
Trump administration’s 34%
turnover rate—21 of the 61 senior officials she has tracked
have resigned, been fired or
reassigned—is much higher
than that of any other administration in the past 40 years,
which is as far back as Ms.
Dunn-Tenpas’s analysis goes.
The presidency with the
next-highest first-year turnover rate was Ronald Reagan’s,
with 17% of senior aides leaving the administration in 1981.
“Not only is the percentage
double, the seniority of people
leaving is extraordinarily high,”
Ms. Dunn-Tenpas said. “That’s
unprecedented to me. The first
year always seems to have some
missteps on staffing, often because the skills that worked
well running a campaign don’t
President Trump and Vice President Mike Pence, seated center, are the only people in this January photo still working in the White House.
always align with what it takes
to run a government. In this
case, it’s a president with no experience in government and
people around him who also
had no experience,” she said.
“So it’s not surprising that it’s
If history is any
guide, staff turnover
in the second year
will be even higher.
higher than normal, but it’s still
surprising it’s this high.”
Mr. Trump’s first-year turnover rate is three times as
high as both Barack Obama’s
9% and Bill Clinton’s 11%.
The White House didn’t re-
spond to a request to comment. A senior administration
official, speaking to reporters
last week said the turnover
shouldn’t be interpreted as a
series of hiring mistakes.
“Is it a mistake to have to
fire people? You’re asking, did
he make a mistake in hiring
them in the first place? You
have to be more specific about
people,” the official said. “I
know we love to learn the more
generic points of palace intrigue than the finer points of
policy sometimes, but we have
a really good team here. And we
have a team that is very well
managed by the chief of staff.”
Many inside the administration credit chief of staff John
Kelly, who succeeded Mr. Priebus in July, with bringing
greater stability to the West
Wing. The communications de-
partment, initially a main
source of agitation for Mr.
Trump, has also stabilized
with adviser Hope Hicks, the
fourth White House communications director to hold the
position this year after Anthony Scaramucci’s firing. Mr.
Kelly’s housecleaning continued with Mr. Bannon’s ouster.
Still, the personnel churn
“is really destabilizing to the
institution,” Ms. Dunn-Tenpas
said. “Every time there’s turnover, they’ve got to hire someone new and spend time training them. And when you pull
someone from one important
position to another, there’s
this domino effect.”
As an antiestablishment
outsider, Mr. Trump has continued to rely on a small circle
of advisers—as he did during
his campaign—placing a high
priority on loyalty and leaving
hundreds of other top jobs
across the federal government
vacant as part of his effort to
reduce the size of government.
Another factor in the fluid
personnel situation is special
counsel Robert Mueller’s
probe into Russia’s role in the
2016 presidential campaign.
The president has called the
investigation a “witch hunt”
and Moscow has denied inferring in the election.
If history is any guide, turnover will be even higher in the
second year. According to Ms.
Dunn-Tenpas’s research, Mr.
Reagan’s turnover jumped to
40% in 1982. Mr. Clinton lost
27% of his key advisers in year
two and President George W.
Bush, who lost just 6% of senior
aides in a first year, saw 27% of
them leave the following year.
The state of Alabama on
Thursday certified Democrat
Doug Jones the winner of a
special election for U.S. Senate, following a failed, 11thhour legal challenge by Republican Roy Moore.
Mr. Jones, who won the
Dec. 12 election and is expected to be sworn in Jan. 3 by
Vice President Mike Pence, is
the first Democrat elected senator from Alabama in more
than two decades.
“I am looking forward to
going to work for the people of
Alabama in the new year,” Mr.
Jones said after the certification.
Mr. Moore issued a statement saying the election was
“fraudulent” but suggesting he
wasn’t likely to pursue further
challenges.
“I have stood for the truth
about God and the Constitution for the people of Alabama,” he said. “I have no regrets. To God be the glory.”
The candidate didn’t ride
off quietly into the sunset after the election: He filed a
complaint in state court late
Wednesday calling for a judge
to block certification and asking for a state investigation
into “potential election fraud.”
The legal action provided
another twist in a highly unusual election.
Circuit Judge Johnny Hardwick, in Montgomery, dismissed the case on Thursday
“with prejudice,” meaning the
complaint couldn’t be refiled,
arguing that the court didn’t
have jurisdiction.
Mr. Moore hasn’t conceded
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he lost the race. Vote tallies
show Mr. Jones received about
20,000 more votes than Mr.
Moore out of more than 1.3
million cast.
Mr. Jones’s victory was a
defeat for President Donald
Trump, who had endorsed Mr.
Moore despite allegations, first
reported in the Washington
Post, that Mr. Moore had inappropriate relationships with
adolescent girls decades ago.
Mr. Moore has denied the allegations.
It isn’t clear what recourse
remains for Mr. Moore. He
faced a difficult challenge to
show that there is sufficient
evidence of fraud to overturn
an election, particularly since
state officials certified the
count, legal experts said.
Jan Baran, who has handled
election-law cases for Republi-
UBER
Continued from Page One
lion, a concession to existing
Uber shareholders concerned
that the purchase of lowerpriced shares in the tender offer might undermine the value
of their remaining stakes. Including that and the shares it is
buying in the tender offer, SoftBank said it will pay $7.7 billion
for its 15% stake.
A successful deal is critical
to Uber because hard-fought
corporate changes are tied to
its completion. The ride-hailing
firm will add six directors—including two from SoftBank—
and expand voting rights for all
investors. For SoftBank, the
deal is a high-stakes bet on the
future of transportation, as the
Japanese investor owns big
stakes in several Uber rivals.
A deal would conclude
months of sometimes-rocky
talks. Uber would give significant
influence to SoftBank while making it a powerful ally. A deal
could bolster efforts by Chief Executive Dara Khosrowshahi to
stabilize Uber and upgrade its
governance after scandals and
conflict under his predecessor,
Uber co-founder Travis Kalanick.
Uber still is reeling from allegations of sexism earlier this
year by a former software engineer, which led to a company
investigation and the dismissal
of more than 20 people, and
claims by a former Uber security official that it engaged in
corporate espionage. Uber is
preparing for trial in a lawsuit
from Alphabet Inc. claiming
LUKE SHARRETT/BLOOMBERG NEWS
Alabama Certifies Jones as Senate Victor
BY CAMERON MCWHIRTER
WASHINGTON
WIRE
Republican Roy Moore had sued to block certification of the vote.
can campaigns around the U.S.,
said it was unlikely the complaint would have an impact
on Mr. Jones taking office.
Mr. Moore’s legal complaint
was unorthodox, citing “implausible” voting totals in cer-
tain Alabama counties but also
including a statement that he
had taken a polygraph test to
rebut allegations of sexual
misconduct against him.
—Jacob Gershman
contributed to this article.
Uber stole trade secrets, and it
is battling regulators over its
right to operate in London, one
of its biggest global markets. It
also recently disclosed a massive hack of the company more
than a year ago that Uber said
executives tried to conceal.
Uber gains a powerful backer
in SoftBank CEO Masayoshi
Son. His firm has a stake in all
of the largest global ride-hailing
firms, including Didi Chuxing
Technology Co. in China as well
as ANI Technologies Pvt.’s Ola
in India. SoftBank also holds
stakes in some of the most wellknown tech startups like WeWork Cos., Slack Technologies
Inc. and Flipkart Group.
The $1.25 billion investment
would help solidify Uber’s balance sheet ahead of a possible
initial public offering in 2019.
Although Uber isn’t pressed for
cash—it had nearly $5 billion at
the end of this year’s third
quarter—it has worked to curtail costs after posting $2.52
billion in combined losses over
the past two quarters, despite
rising revenue and bookings.
SoftBank is set to appoint to
Uber’s board Rajeev Misra, who
helms the $93 billion Vision
Fund that SoftBank is tapping
for the deal, the people familiar
with the matter said.
It also is likely to appoint
Marcelo Claure, the CEO of
Sprint Corp., though SoftBank
Vice Chairman Ron Fisher has
been under consideration, the
people said.
All three men are directors at
SoftBank, meaning whichever
two are chosen, the Uber and
SoftBank boards would share
three directors in common, as
Yasir Al Rumayyan, the managing director of Saudi Arabia’s
Public Investment Fund, already
is on both boards.
SoftBank’s consortium in the
investment includes Dragoneer
Investment Group and Tencent
Holdings Ltd.
With SoftBank simultaneously buying shares at two different prices, the deal has raised
the question of Uber’s true value.
Startups and their investors
typically mark a company’s valuation at the last price paid in a
direct funding round. In socalled secondary-share sales,
discounts are customary because
the stock can’t be resold easily
and the shares usually have
For SoftBank, the
deal is a high-stakes
bet on the future of
transportation.
fewer protections for owners
than those purchased directly
from the company. Direct and
secondary investments from a
single investor don’t usually occur simultaneously, especially on
the scale of the Uber deal.
Some employees and investors have waited years for the
opportunity to sell their stakes
and may not get another opportunity before the possible IPO.
Early investors could reap billions of dollars in the tender offer, including venture-capital
firm Benchmark, which made
an initial $27 million investment in the company and holds
President Donald Trump attacked China on Thursday following reports that Chinese
ships transferred oil to North
Korean vessels at sea in violation of U.N. sanctions over the
North’s nuclear weapons program.
Mr. Trump said on Twitter
that China had been “Caught
RED HANDED,” adding he was
“very disappointed that China is
allowing oil to go into North Korea.”
“There will never be a friendly
solution to the North Korea
problem if this continues to happen!” the president said, without
citing the source of his information.
On Tuesday the South Korean newspaper Chosun Ilbo
cited unidentified South Korean
government officials as saying
U.S. reconnaissance satellites
have spotted Chinese ships
transferring oil to North Korean
vessels some 30 times since October in seas off China. That report was picked up by some U.S.
media outlets, including Fox
News.
A spokeswoman for China’s
foreign ministry said she had no
information about the latest report but said China has strictly
enforced trade restrictions.
—Associated Press
TAXES
New Law May Boost
Donations for 2017
Americans may have less incentive to give to charitable
causes next year because of the
newly minted tax law. The
changes that will make it less
advantageous for many people
to donate to charity in 2018
may be sparking a year-end
stream of fattened contributions
in anticipation, charity executives
and experts say.
Starting next year, the millions of relatively small donations from moderate-income
people to mainstream charities
could be sharply reduced, they
say. That means charity could
become less of a middle-class
enterprise and a more exclusive
domain of the wealthy. Their
use of the charitable tax deduction is less likely to be affected
by the new law.
A central pillar of the massive
tax law doubles the standard
deduction used by two-thirds of
Americans, to $12,000 for individuals and $24,000 for married
couples. That means many taxpayers who now itemize deductions will find it is no longer
beneficial for them do so. They
will find that the deductions
they normally take, including for
charitable giving, don’t add up to
as much as the new standard
amount.
—Associated Press
a stake worth over $8 billion.
A deal would make SoftBank
one of Uber’s largest single
holders. Benchmark, which
holds a roughly 13% stake, as
well as another early investor,
Menlo Ventures, had said they
would sell some shares in the
tender offer. Uber co-founder
and director Garrett Camp also
is among those selling shares to
SoftBank, one of the people
said. Mr. Kalanick, the former
CEO, who holds about 10% of
Uber, has indicated he wouldn’t
sell shares into the offer, people
familiar with the matter have
said previously.
It couldn’t be learned Thursday whether Mr. Kalanick retained his full stake.
The deal’s prospects have at
times appeared uncertain.
Benchmark and Mr. Kalanick engaged in a last-minute battle. Ultimately, Benchmark agreed,
people familiar with the matter
said, to put a stay on its lawsuit
against Mr. Kalanick that sought
the return to board control of
three seats he oversees. And the
former CEO allowed for a majority board vote for any future appointments he makes to the
three board seats he controls,
the people said.
If SoftBank had failed to
reach a threshold of around 14%
of shares after the 20-businessday period ended Thursday, it
could have walked away. That
could have thrown Uber into
chaos, derailing the planned
governance changes and raising
the prospect of continued legal
wrangling between Benchmark
and Mr. Kalanick.
—Mayumi Negishi
contributed to this article.
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | A5
NY
* * * * *
U.S. NEWS
BY ERIC MORATH
President Donald Trump entered office with a promise to
reduce regulation and reshape
the government’s relationship
with businesses and workers.
Here’s a look at the most significant labor-policy changes
in 2017 and items to watch for
in 2018.
What Happened
1. GOP control of the National
Labor Relations Board
Mr. Trump filled two vacant
seats on the five-member
board that oversees union-employer disputes, giving Republicans control for the first
time in a decade. Before a
third Republican’s term expired in December, three major decisions were issued:
The board reversed a 2015
ruling concerning the meaning
of joint employment. The new
ruling potentially makes it
harder for contractors or
workers at franchises to organize into unions.
The NLRB overturned a 2011
case allowing smaller groups of
workers to form collective-bargaining units. The board said it
was more appropriate for a
bargaining unit to consist of all
employees on a site.
Another ruling found an
employee handbook could
limit certain worker privileges,
such as cellphone cameras at
work, without illegally crimping employees’ rights to communicate and organize.
2. Enforcement stance
Labor Secretary Alexander
Acosta in June rescinded previous guidance to look specifically
for instances in which a worker
could be considered jointly employed or misclassified as an independent contractor.
However, some business
groups say enforcement hasn’t
changed as much as they would
have expected, in part because
Mr. Trump’s nominees to lead
Labor’s Occupational Safety
and Health Administration and
Wage and Hour Division have
yet to win Senate confirmation.
3. Regulatory reversal
In March, Mr. Trump
blocked the implementation of
a rule from the prior administration that sought to require
firms bidding on government
contracts to disclose past labor-law violations.
What’s Coming
1. Supreme Court cases
The Supreme Court will decide a case considering
whether public employees can
be required to pay union dues.
If government workers aren’t
required to pay dues, it could
decrease union membership in
the public sector, one of the
last strongholds for organized
labor. The court will also determine whether employers can
block workers from pursuing
joint claims, including class-action lawsuits, by requiring that
they use individual arbitration
to settle disputes.
2. Overtime rule
A federal judge’s ruling in
late 2016 blocked an Obama
administration regulation that
would have expanded eligibility for time-and-a-half overtime pay.
Under Mr. Acosta, the department began to reconsider
the rule but has yet to issue a
formal proposal and likely
won’t until the second half of
2018. The secretary has indicated he would expand the
number of workers who automatically qualify for overtime
pay, but likely not by as much
as the Obama rule would have.
3. Apprenticeships
Expect more details in 2018
about how the government
will expand apprenticeship
programs. Mr. Trump made
apprenticeships the center of
his labor policy aimed at addressing a shortage of skilled
workers. But that announcement came with few specifics.
Assault Reports Rise in Military
BY BEN KESLING
Reported sexual assaults in
the military are at a record
high as the Pentagon wrestles
with a problem officials say
has only recently been addressed and critics say hasn’t
been fully recognized.
The depth and persistence
of the military’s problem have
taken on new relevance this
year as allegations of sexual
assault and harassment have
rocked other parts of society,
including business, entertainment and politics.
The number of reported
sexual assaults in the military
has risen from approximately
3,000 a year in 2007 to more
than twice that in 2016, according to Pentagon records.
The rate of offenses likely has
declined, however, according
to troop surveys, as the percentage of those reporting assaults has tripled.
Harassment likely remains
an underreported issue, with
only 601 complaints filed in
2016 of the more-than 100,000
incidents experts estimate
took place. Military officials
said harassment must be better addressed because unwelcome behavior can pave the
way for assault.
“We look at it as a continuum of harm, sexual harassment being often a precursor
for sexual assault and more
serious behavior,” said Elizabeth Van Winkle, who is acting
as assistant secretary of defense for readiness.
Arguably the watershed
event on the broader issue
was the Tailhook Association
conference in Las Vegas in
1991, where some 100 U.S.
Navy and Marine Corps aviators allegedly sexually assaulted dozens of men and
women. As a result, some top
Navy officials saw their careers end abruptly.
Public attention eventually
faded, however, and many underlying institutional issues
went unresolved, including the
perception that senior officers
didn’t take the issue seriously
and that victims had little support to speak out.
CHIP SOMODEVILLA/GETTY IMAGES
Trump’s Labor Policy,
Past, Present, Future
Despite major training initiatives, the military has struggled with sexual misconduct in the ranks.
Persistent Problem
Reports of sexual assault in the
U.S. armed services
8,000. reports
6,000
4,000
2,000
0
2007
’10
Source: Department of Defense
’13
’16
THE WALL STREET JOURNAL.
It
wasn’t
until
the
mid-2000s that complaints by
troops in to war zones
prompted then-Defense Secretary Donald Rumsfeld to order
steps to address the problem
of assault.
“What the country is going
through now is something that
we really started to go
through in 2005,” said Nathan
Galbreath, deputy director of
the Defense Department’s Sex-
ual Assault Prevention and Response program, created that
year.
In the mid-2000s, the Pentagon began taking surveys of
troops about assault in the
ranks and instituted mandatory training.
But the culture only slowly
responded. While the program
mandated annual training for
troops, the required classes
often were seen as a waste of
time or even as a joke among
some troops and lower-level
commanders.
These basic requirements
remain, though the department has updated them and
increased focus on changing
the attitude of officers and senior noncommissioned officers.
During the Obama administration, as complaints arose at
colleges across the U.S., the
White House pushed educators
to use lessons learned by the
Pentagon, including its extensive use of surveys and its reporting system.
Yet, there are limits to what
civilians can learn from the
military, experts said.
The Defense Department is
85% male, a much larger percentage than most civilian industries. And two of the most
effective tools the military has
used—no-cost lawyers for victims and base transfers—don’t
generally have parallels in the
civilian criminal-justice system.
The Pentagon says the internal surveys show a decrease over time in assault
and an increase in the numbers of people willing to report offenses.
The majority of women who
step forward said they have
faced retaliation, said Lydia
Watts, CEO of the Service
Women’s Action Network. She
added that the military still
has a culture of complicity
that also protects offenders.
“People who would never
commit a sexual assault feel
justified in saying, ‘Why did
you ruin my buddy’s career?’ ”
she said.
—Nancy A. Youssef
and Chris Gordon
contributed to this article.
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THE WALL STREET JOURNAL.
A6 | Friday, December 29, 2017
WORLD NEWS
Italy Calls High-Stakes March Election
A fractured electorate
will go to the polls
amid unresolved
economic problems
QUIRINALE PALACE/EPA/SHUTTERSTOCK
BY DEBORAH BALL
AND GIOVANNI LEGORANO
ROME—Italy’s President
Sergio Mattarella dissolved
Parliament on Thursday and
called elections for early
March, a vote that will highlight the economic and political problems still stalking Europe and the country’s role as
the weakest flank in the currency union.
The vote—the latest in a series of momentous elections in
Europe—will be in line with
the overwhelming trends of
2017, featuring a fractured
electorate, continued pressure
from populist movements and
predictions of a struggle to
form a cohesive government.
But for many European
leaders, Italy remains the most
worrisome spot in the eurozone, given the huge size of its
public-sector debt, its weak
banks and poor competitiveness.
The elections, set for March
4, aren’t likely to put those
concerns to rest, as the center-left tries to fend off a populist upstart and the return of
Silvio Berlusconi, the 81-yearold whose political rebirth is
growth in Europe this year,
along with the U.K., according
to EU forecasts. It is expandEven as Europe sees its strongest growth in years, Italy’s economy,
weighed down by factors that discourage investing and hiring, has yet ing half as fast as countries
such as Spain, which has
to return to pre-crisis levels.
bounced
back
strongly.
Cumulative change in GDP*
Deutsche Bank expects Italian
20%
growth to slow to 1.4% in 2018
and 1% the year after.
Germany
Its economy is 6% smaller
10
than at the start of 2008, makFrance
Eurozone ing it the only G-7 economy
0
Spain
not to have returned to its
pre-crisis size.
Italy
–10
The governments of Prime
Minister Paolo Gentiloni and
his predecessor Matteo Renzi
–20
have undertaken some key reforms, notably in loosening laGreece
–30
bor-market rules and in shoring up the bank’s fragile
2010
banking sector. “The economy
Ease-of-doing-business rankings†
Youth unemployment
that the next Parliament will
inherit will be far better than
1st
60%
the one the current legislature
U.S.
did,” said Italian Economy
Germany
Greece
30th
40
Minister Pier Carlo Padoan at
Spain
Spain
a recent conference.
Italy
But business and political
Italy
20
60th
Eurozone leaders say Italy has failed to
50th in
2017
exploit the crisis to address
Germany
0
90th
chronic weaknesses.
2010
2009
17’
In a speech a decade ago as
head of Italy’s industry associ*Chain linked volumes, seasonally adjusted; †Out of 183 countries with 1 being the best
Sources: Eurostat (GDP, unemployment); World Bank
THE WALL STREET JOURNAL. ation, Luca di Montezemolo, a
former chairman of Fiat SpA,
million new ones this year, in order, having shed €60 bil- listed 10 urgent reforms Italwith more families buying sec- lion ($72 billion) in bad loans ian businesses wanted from
the government, including a
ond cars, according to Promo- this year.
tor, an Italian research group.
But, though the economy leaner bureaucracy and lower
Italy’s banks—a source of Eu- will likely have expanded 1.5% taxes. “I could give that same
rope-wide concern last year— in 2017, its fastest pace in six speech today,” Mr. di Monare slowly putting their house years, it marks the slowest tezemolo said in an interview.
Still Struggling
Italian President Sergio Mattarella signed the decree dissolving
Parliament at the Quirinal Palace in Rome on Thursday.
further shaking up politics.
The 5 Star Movement—the
anti-establishment group that
stormed Italian politics during
the crisis on popular anger
with legacy politicians—could
win about 30% of the vote.
Most expect a hung Parliament and a protracted period
of political instability in the
eurozone’s third-largest economy, which has been hamstrung by structural problems
and bureaucracy that have
helped keep its economic
growth lagging behind the rest
of the eurozone.
Europe is enjoying its best
economic momentum in years,
a rebound that could muffle
concerns over the Italian vote.
Italy’s economy has been
buoyed by the robust expansion elsewhere in Europe and
by several years of ultra-loose
monetary policy, combined
with pent-up demand at home
after the country’s deepest
and longest downturn since
the war.
Italians are splurging on
new cars, buying about two
EU Finds Leading Fight for Open Trade a Tough Task
ATTACK
Continued from Page One
eastern Afghanistan. Its local
affiliate, known as Islamic
State-Khorasan, is vying with al
Qaeda and the Taliban, the
country’s main insurgency, for
the allegiance of domestic- and
foreign-armed radical Islamists.
But it is coming under increasing pressure from the expanded U.S. military operations in Afghanistan announced
by President Donald Trump in
August. The U.S. currently has
about 15,300 troops in Afghanistan, according to the Pentagon, up from roughly 8,400 at
the end of March.
Since March, the U.S. military in Kabul says, American
military operations have reduced the number of Islamic
State fighters on the battlefield by more than 1,600 and
the number of “fighting positions” by 600. It also says it
has seen no increase in the
flow of foreign fighters into
Afghanistan since Islamic
State was driven from its Iraqi
stronghold of Mosul and its
Syrian capital Raqqa earlier
this year.
A senior Afghan official
said Islamic State-Khorasan
has a “sporadic presence” in
the east of the country, including in the provinces of Nangarhar and Kunar, as well as
some areas of the north. The
group, he said, has recently
suffered “mass casualties” on
the front line.
Capt. Gresback said Islamic
State-Khorasan operates independently of Islamic State’s
Activists staging a protest against the EU-Canada trade deal in Vienna in September.
also grappling with political
divisions among its 28 members and calls for safeguards
against China’s rising economic might.
Mr. Trump withdrew the
U.S. from the 12-country
Trans-Pacific Partnership on
his first day in office. Soon afcore group in Iraq and Syria.
“We’ve isolated them from
outside financing. They haven’t been able to establish a
caliphate in Afghanistan. We
continue to disrupt their operations and what they’re trying
to carry out,” he said.
While alliances among Islamist militants in Afghanistan
are fluid and evidence to substantiate claims of responsibility for attacks is usually elusive, Capt. Gresback said
Islamic State’s declaration that
it carried out Thursday’s attack was credible. “It fits a
pattern of their previous acts
of sectarian violence,” he said.
Both organizations hit in
Thursday’s blasts, for which
Islamic State claimed responsibility through its Amaq news
agency, are widely viewed as
supporters of Iranian foreign
policy. Islamic State has said it
was behind separate attacks
on Shiite mosques in the capital in October that left at least
88 worshipers dead and hundreds wounded.
The target of Thursday’s attack was a compound in
southwestern Kabul shared by
the cultural center and the Afghan Voice Agency. Both are
owned by Hussani Mazari, an
Afghan Shiite cleric and a frequent guest of Iranian officials
in Tehran. Attempts to reach
Mr. Mazari were unsuccessful.
The bomber made his way to
the building’s basement, where
a seminar marking the 38th anniversary of the Soviet invasion
of Afghanistan was under way,
and blew himself up, Interior
Ministry officials said.
The main blast was followed by two smaller explo-
ter he froze trade talks with
the EU and demanded a renegotiation of the North American Free Trade Agreement
with Canada and Mexico.
Brussels responded by extending a hand to all the trading partners the White House
shunned.
So far, that has produced an
agreement on world’s biggest
trade deal, between the EU
and Japan. It has also spurred
frenzied talks to complete negotiations, or start new ones,
with partners from Latin
America to Asia.
The EU has also provision-
ing to engage two more U.S.
trading partners burned by
Washington’s exit from the Pacific trade pact.
“Partners across the globe
are lining up at our door to
conclude trade agreements
with us,” Mr. Juncker said.
EU governments still haven’t greenlighted Australia
and New Zealand talks, and
such hesitation has frustrated
efforts to get any EU trade
pact fully approved.
Leery of the populist backlash that fueled Britain’s decision to exit from the bloc and
resistance to the Canada trade
deal, EU governments are reluctant to yield more powers
to Brussels.
Most European leaders—including strongly pro-EU ones
such as French President Emmanuel Macron—want to preserve a national say in trade
pacts.
Some EU governments also
demand safeguards against
China, whose mix of state support, acquisitiveness and domestic
protection
have
prompted the EU to bolster its
trade defenses and consider screening foreign investments.
ally implemented a deal with
Canada that slashed almost all
tariffs between the two trading partners.
Brussels, however, fell short
on its ambitious agenda of
clinching deals this year with
Mexico and Mercosur, the
South American bloc grouping
Argentina, Brazil, Paraguay
and Uruguay. A 2014 agreement with Singapore and 2016
deal with Vietnam haven’t yet
been implemented, pending
debates and approvals from
EU governments and the European Parliament.
In the face of U.S. disengagement, the EU and its international
partners
also failed to achieve objectives such as eliminating subsidies for illegal fishing at a
World Trade Organization
gathering this month in Buenos Aires.
European Commission President Jean-Claude Juncker, the
bloc’s top executive, has made
strengthening the EU’s role in
global trade his first priority
as Washington retrenched.
In September he asked EU
governments to approve fasttrack negotiations with Australia and New Zealand, seek-
HEDAYATULLAH AMID/EPA/SHUTTERSTOCK
BRUSSELS—The European
Union started this year by announcing a global trade offensive to counter rising U.S. protectionism. Now the bloc faces
an uphill battle to prove it can
deliver.
With U.S. President Donald
Trump’s “America First” policies upending
ANALYSIS the world trading
system
championed for
seven decades by the U.S., the
EU was quick to suggest it
would assume the mantle of
globalization’s standard-bearer.
“Those who, in the 21st
century, think that we can become great again by rebuilding borders, reimposing trade
barriers…are doomed to fail,”
European Trade Commissioner
Cecilia Malmström said in
January, four days after Mr.
Trump’s inauguration. “It is
important the EU shows confidence and leadership.”
Almost a year later, Brussels has a mixed record of success on the trade front. While
the EU strives to fill the void
left by the U.S. as an advocate
of trade liberalization, it is
JOE KLAMAR/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY EMRE PEKER
A woman whose son was killed in the attack in Kabul visited the scene on Thursday.
sions, the officials and witnesses said. In addition to the
dead,
84
people
were
wounded, the Afghan Health
Ministry said. Within minutes
of the attack, the Taliban denied any involvement in it.
One witness said residents
took on the task of ferrying
the dead and wounded to hospitals and clinics, as police
and rescue services were slow
to arrive at the attack site.
“After the first blast, I
rushed into the building and
saw dozens of bodies lying on
the ground. While we were
evacuating the wounded, two
other explosions went off,”
said the witness, Murad Ali.
The Afghan government has
sought to avoid taking sides in
the Shiite-Sunni conflict that
has roiled the Middle East, according to Ali Mohammad Ali, a
Civilian Casualties
Civilians injured or killed in
Afghanistan, Jan.–Sept.
Casualties by party responsible,
2017 through September
8 thousand
Pro-government
forces
6
Taliban
20%
4
Other*
43
16
2
15
0
’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17
Unidentified antigovernment forces
6
Islamic
State
*Includes casualties caused jointly by pro- and anti-government forces
Source: U.N. Assistance Mission in Afghanistan
THE WALL STREET JOURNAL.
former counterterrorism adviser to the Kabul government.
As a result, he says, it turned a
blind eye on Shiites from the
country’s Hazara ethnic group
who joined Iranian-backed
forces to fight Islamic State in
Syria and Iraq. That activity,
Mr. Ali said, “has made the
Hazaras extremely vulnerable
to be attacked by these people.”
Mr. Ali also said leadership
changes in the Taliban had
prompted some commanders,
including some suspected of
orchestrating complex attacks
in Kabul, to switch sides and
fight for Islamic State. That
shift in allegiance means Islamic State rather than the Taliban now often claims responsibility for Kabul bombings,
making them “tactically similar
[but] strategically different.”
In a statement condemning
the assault, Afghan President
Ashraf Ghani said his government and the Afghan public
remained unified against the
“baleful plots and conspiracies
of the country’s enemies.” His
administration, he said, was
committed to “annihilating all
terrorist groups.”
In recent years, Afghanistan’s minority Shiite community has been singled out as
militant groups try to inflame
religious and ethnic tensions
and destabilize the government.
The United Nations said in
November that attacks on
places of worship, religious
leaders and worshipers in Afghanistan, particularly on Shiite congregations, had increased between Jan. 1, 2016,
and Nov. 1, 2017. At least 850
civilians were killed or
wounded in that period,
nearly double the number during the previous seven years,
the U.N. said in a report that
urged the government to better protect Shiites.
“Attacks on Shi’a Muslims
and their places of worship
may be expected to continue—
or increase—if action is not
taken,” the report said.
—Jessica Donati contributed
to this article.
.
THE WALL STREET JOURNAL.
NY
Friday, December 29, 2017 | A6A
.
A6B | Friday, December 29, 2017
THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
Friday, December 29, 2017 | A7
* * * *
IN DEPTH
STEFEN CHOW FOR THE WALL STREET JOURNAL
Director Renny Harlin, right, on the set of ‘Bodies at Rest’ in Beijing. Mr. Harlin, who speaks little Mandarin, relies on translators to
pass along his instructions. Also different: adjusting to Chinese tastes, story-telling techniques and censorship.
THE WALL STREET JOURNAL.
Empty replicas of old-fashioned
Chinese villages stand among a
campus of soundstages built of
gray brick.
Nearby residents live off unpaved roads, but the area surrounding the Film Group campus resembles a Las Vegas
homage to Hollywood. Street
lampposts are decorated like
film reels. Statues of a cameraman and boom-mike operator
have been erected in a courtyard. Mr. Harlin and other
members of the crew live in a
hotel, Cineaste, built to house
the casts and crew. Its logo is
an Oscar statuette.
Mr. Harlin, 58 years old and
6-feet-4, wears a black T-shirt,
Nikes and several bead bracelets and heavy silver rings on
set. His light-red goatee blends
into his complexion and his
hair is buzzed short—a departure from the blond mane he
had when he attended Planet
Hollywood openings in the
’90s. He is often the only Westerner on his movies.
Other Hollywood writers
and directors have found work
in China, and stars such as
Adrien Brody and Arnold
Schwarzenegger have appeared
in Chinese movies American
audiences will never see. No
one has committed to the market like Mr. Harlin, who moved
to Beijing in 2014 after his
agent, Max Michael at United
Talent Agency, pitched him on
directing a U.S.-China co-production called “Skiptrace.” He
knew “Skiptrace” wanted a
Hollywood name and Mr. Harlin wouldn’t mind traveling.
In China, his client got the
star treatment. “He would ask
for one crane and the next day
there’d be two,” said Mr. Michael.
Born in Finland, Mr. Harlin
dropped out of film school and
directed his first movie in 1986.
“Born American,” about three
American college students who
cross the Russian border and
ignite an international brawl,
was banned by Finland after
the country worried it would
anger the neighboring Soviet
Union.
After moving to Los Angeles,
he drove around in a convertible with a torn roof until he
got a job directing the hit
Freddy Krueger sequel “A
Nightmare on Elm Street 4.”
Job offers poured in.
Mr. Harlin abandoned the
convertible at a parking meter,
bought a Ferrari and began a
to refuel. Loaded with dried
fruit, nuts and just enough cake
to hold the mix together, fruitcake is calorically dense and full
of vitamins and minerals—a
great food for someone hiking
2,000 miles with a quarter of
their body weight on their back,
says Brenda Braaten, a nutritionist and author of “Pack
Light, Eat Right,” an online
guide for long-distance hikers.
“Hikers are just burning out
on gorp,” says Dr. Braaten, 66,
of the trail mix that contains
nuts, fruit and other ingredients. Hikers often leave bags of
the stuff behind at the Belden,
Calif., home she and her husband open up to those walking
the nearby Pacific Crest Trail.
She uses some of the ingredients to make her spirits-spiked
fruitcake.
“It’s just gorp stuck together
and made a little more appealing—probably because of the
brandy,” she says. She and her
husband have considered changing their “trail names”—nicknames hikers use—from “Wilderness Woman” and “Holek,”
to “the Fruitcakes.”
Fruitcake also famously
stores well. The Pioneer Heritage Museum in Hurricane,
Utah, has a 110-year-old fruitcake on display.
Before a long-distance hike,
Sage Clegg, a 38-year-old wildlife biologist in Bend, Ore.,
makes fruit balls, a cookie version of fruitcake her mother devised. She packs them in boxes,
along with more standard fare
like instant mashed potatoes,
and has them shipped to stops
on the trail, where she picks
them up months later. “They
last for a long time,” she says.
Edward Garvey, a legendary
Appalachian Trail hiker, had
fruitcakes from Claxton Bakery
Inc. shipped to him at post offices along the route he chronicled in his 1971 book “Appalachian Hiker: Adventure of a
Lifetime.”
“This fruitcake is easy to
pack, keeps well, and is delicious to eat. What more could
one ask?” he wrote.
Others have since tried to
emulate his hikes, right down to
the Claxton fruitcake, a densely
packed concoction of pecans, al-
STEFEN CHOW FOR THE WALL STREET JOURNAL
Continued from Page One
global cultural force.
His soundstage is one of
many production lots sprouting
up across China, which is
marching toward becoming the
world’s No. 1 box-office market.
Acclaimed art-house films like
“Farewell My Concubine” and
surprise hits like “Crouching
Tiger, Hidden Dragon” have
had world-wide success. But
the country has never scored a
major commercial global hit.
That’s where Mr. Harlin
comes in. Chinese producers
are paying a premium for Hollywood experience they think
can get their domestic movies
up to Western standards. For
the director, that means having
to navigate challenges unique
to his new home, such as government censors, cinematic
tropes that get lost in translation and storytelling fundamentals that require a rewrite.
“Bodies at Rest” was written
as a Hollywood action thriller
that Mr. Harlin says he “Chinafied” in a second draft. Like
“Die Hard 2,” it is a one-location action thriller about an ordinary man battling his way
out of extraordinary circumstances, in this case, a doctor
fighting a band of criminals
trying to retrieve a bullet that
incriminates them. Both movies
even take place on Christmas
Eve.
Mr. Harlin has written the
heroic doctor as a typical Hollywood good guy: the affable
rogue agent in the mold of
John McClane, the “Die Hard”
heartthrob who can throw
quips and punches.
In one scene in which the
doctor begins taunting the
criminals over an intercom, Mr.
Harlin wanted the hero to announce, “Attention shoppers.”
It’s the kind of line Bruce Willis’s McClane would manage to
deliver after a shootout,
wounded but winking.
Colleagues on set told Mr.
Harlin that Chinese viewers
wouldn’t understand “attention
shoppers,” forcing his translators to search for a replacement. Sarcasm is often lost on
Renny Harlin watches takes to give feedback on set.
Renny Harlin's Notable Films
The director's biggest movie in China has grossed more than his
biggest U.S. hit, 'Die Hard 2.’
$129 million
'Skiptrace'
(2016)
$117 million
'Die Hard 2'
(1990)
$84 million
'Cliffhanger'
(1993)
$74 million
'Deep Blue Sea'
(1999)
'A Nightmare on Elm Street 4'
(1988)
'Cutthroat Island'
(1995)
$49 million
$10 million
Source: Box Office Mojo
CAKE
Continued from Page One
to Canada.
“It was an amazing treat between the ramen and peanut
butter,” Caitlin Miller, 25, says
of a chunk of fruitcake a British
couple gave her while she was
in the middle of a long trek in
California this year. Ms. Miller,
who lives in Waterbury, Vt., rationed it to make it last days.
Fruitcake is a perennial butt
of jokes: that holiday dessert
studded with neon-colored candied fruit and nuts (and sometimes spirits) that no one except
your great aunt likes and many
people regift. “There is only one
fruitcake in the entire world,
and people keep sending it to
each other,” former “Tonight Show” host Johnny Carson is widely quoted as having
said. Others have opined on
fruitcake’s use as a doorstop,
dart board or knife rack.
But long-distance hikers and
other athletes are nuts for fruitcake, calling it an efficient way
ent English that Mr. Harlin
jokes she’s a spy.
While he is filming “Bodies
at Rest,” Mr. Harlin is editing
“The Legend of the Ancient
Sword,” a Alibaba Pictures videogame adaptation he finished
directing earlier this year
about a group of ragtag heroes
who band together against an
evil grand priest.
Unlike “Bodies at Rest,” it
has an overtly Chinese aesthetic and narrative structure.
Mr. Harlin tried to “Hollywoodize” the script by giving it a
more traditional three-act
structure, but the movie might
still seem odd to Western viewers in how it veers from mystery to grief to melodrama to
slapstick in the same scene.
During a lunch break on
“Bodies at Rest,” he gathered a
small crew in his office to
watch footage from “Ancient
Sword.” Mr. Harlin’s feedback
was full of Hollywood references. He wants the “Ancient
Sword” cast to have a vibe similar to “Guardians of the Galaxy.” To improve the look of
one monster, he suggested
looking at “Fantastic Beasts
and Where to Find Them.” A
panda’s facial movements could
draw some lessons from “Kung
Fu Panda.”
Hollywood movies have been
America’s dominant cultural
export for a century, and after
“Bodies at Rest,” Mr. Harlin
will help China’s own efforts to
use the big screen to showcase
the country. In May, he’ll start
filming “Operation Somalia,” a
cinematic portrayal of a Chinese special operations mission
that has the support of China’s
Ministry of Public Security,
which is developing a slate of
action movies with positive
Chinese values, cinematic portrayals of the state’s own good
guys in victorious missions.
Beyond “Operation Somalia,” Mr. Harlin has other projects in mind, including a Chinese outer-space movie that
highlights the country’s space
program.
“When I see the Chinese flag
in the wind, it makes me feel
proud and good,” he said. “This
is where I live and I want my
audience to feel good about
themselves and their country.
It doesn’t make me anti-American. I live here. I’m patriotic
about Finland. I’m patriotic
about America. And I’m becoming very patriotic about China
as well.”
China's Box Office Rise
PwC analysts say China could become the No. 1 box-office
market by 2021, although unpredictable economic variables
in the country make forecasts difficult.
U.S.
$12 billion
China
Projections
10
8
6
4
2
0
2012
2013
2014
2015
2016
Source: PwC
hot streak that included “Die
Hard 2” and “Cliffhanger.” He
married actress Geena Davis in
a 1993 wedding ceremony featuring heavy security and a
skywriter.
“He got hit by the Hollywood crack pipe,” said Bob
Shaye, the former chief executive of New Line Cinema who
hired Mr. Harlin for “Elm
Street” and other projects.
“When you get so high so
quick—and then you come
down.”
In 1995, Mr. Harlin made
“Cutthroat Island,” starring Ms.
Davis as a pirate-ship captain
on the hunt for buried treasure
using a map printed on her
dead father’s scalp.
“It never even had the
slightest chance,” said Mr. Harlin. The studio was out of
money, the distributor was selling itself and leading man Michael Douglas dropped out before filming. On set, the cast
got food poisoning.
“Cutthroat Island” cost
more than $65 million. It made
$10 million.
The movie’s lousy performance strained his marriage,
and Mr. Harlin had a child with
Ms. Davis’s assistant. The couple divorced, selling their 12acre estate for $9.5 million. Mr.
Harlin continued making movies, including “The Long Kiss
Goodnight,” but his career in
Hollywood never fully recovered.
Mr. Harlin’s first Chinese
movie, “Skiptrace,” starred Mr.
Chan and “Jackass” star
Johnny Knoxville as unlikely
partners in a cross-country ef-
2017
2018
2019
2020
2021
THE WALL STREET JOURNAL.
fort to bring down a mob boss
known as the Matador. It
grossed $129 million in the
country, about equal to the U.S.
grosses of Mr. Harlin’s previous
six movies combined.
Suddenly, Mr. Harlin was
walking red carpets again, this
time at the opening of the
Shanghai Film Festival, alongside Ang Lee and Chinese star
Fan Bingbing. “The spark was
here, like the spark I felt in the
’80s in Hollywood,” he said.
Mr. Harlin’s friends describe
him as a workaholic, and his
life in China is particularly monastic: Hotel gym at 4 a.m.,
‘When I see the
Chinese flag in the
wind, it makes me
feel proud and good.’
production review before
breakfast at 7 a.m., 12 hours or
so on set, room service, tomorrow’s shot list, bed.
His social circle is limited to
friends who visit and three
women who rarely leave his
side: two assistants who were
educated at prestigious film
schools in the U.S. and translate for him on set, and his
girlfriend, Kay Huang, a Chinese native and a recent college graduate who is writing a
novel from the hotel when
she’s not trailing Mr. Harlin.
Ms. Huang, who met Mr.
Harlin at a film festival last
year in Xi’an, speaks such flu-
BRENDA BRAATEN
FILMS
Chinese viewers, too. Mr. Harlin debated dropping the line
altogether. Mr. Cheung, though,
opted to keep it—thinking
younger Chinese audiences familiar with Hollywood-style heroes will find his character
cool.
“It’s like an additive flavor
in this movie, that mix of East
and West,” said Mr. Cheung.
Antiheroes or villains who
get away with their crime are
also a no-go, turning nearly every Chinese movie into a morality play.
Mr. Cheung’s doctor cannot
directly kill the main villain, as
he inevitably would in most
Western narratives. Having a
vigilante act as a law enforcer
would be morally suspect for
Chinese audiences—and censors—so the bad guy dies at his
own hand, giving Mr. Harlin’s
hero the distance he needs to
remain pure.
On set, Mr. Harlin’s Mandarin comprises mostly the count
to three he yells to begin each
scene: “Yi, er, san!” He relies on
two translators who relay his
directions to the crew and to
the actors, who sometimes
don’t understand each other,
either.
Mr. Cheung, a widely respected actor from Hong Kong
who doesn’t speak Mandarin,
delivers his lines in Cantonese.
Ms. Yang, a former child actor
from China who doesn’t speak
Cantonese, says hers in Mandarin. As is the case with most
Chinese movies, the actors’
voices will be dubbed in various Chinese dialects.
It might seem like a comedy
of errors, except Mr. Cheung
and Ms. Yang have memorized
each other’s lines so they know
how to respond to dialogue in
the moment. Mr. Harlin relies
on intuition.
“Can I tell that they’re saying the right words? No. I am
just judging their performance
on the universal scale of emotions. So far in three movies
I’ve never felt a problem,” he
said.
The “Bodies at Rest” set is
located inside soundstage No.
13 on the China Film Group
campus in Huairou, a town
north of Beijing newly redesignated as a moviemaking hub.
Long-distance hikers say fruitcake is an efficient way to refuel,
and it stores well. Above, Brenda Braaten’s fruitcake.
monds, walnuts, cherries and
green-and-red-colored pineapple. Among the company’s products for people on the go are individually wrapped slices, called
“ClaxSnax,” says Dale Parker,
vice president of the Claxton,
Ga., bakery, one of the nation’s
largest fruitcake makers.
Collin Street Bakery, a large
producer in Corsicana, Texas,
plans to start selling fruitcake
bars in 2018, made with fruit,
nuts and brown rice syrup, says
Hayden Crawford, director of
public relations. Executives
were inspired by seeing younger
employees bring fruit and nut
bars to work. “We were looking
at them and going, that’s basically our product,” he said.
Many still think fruitcake is
stale. “I think hikers look at it
the way everyone else does—the
gift you don’t want,” says Mike
Cherim, owner of Redline Guiding LLC, in North Conway,
N.H. He favors Snickers bars. Of
fruitcake he says, “I’ve taken
courtesy bites before.”
Suzie Carrier’s cross-country
ski companions eagerly await
her return to North Conway after the holidays from her native
Quebec City, where her mother
starts making fruitcakes in October. Ms. Carrier, 58, shares
slices on their four-to-five-hour
ski outings. “They look at me
like, OK, did you bring your
mom’s fruitcake?” says the
schoolteacher. “I think it’s an
American thing to have this joke
about fruitcake.”
Art Rohr and Lynn Udick, 69year-old retirees in Cortez,
Colo., take pieces of a friend’s
homemade “Carolina Housewife” fruitcake—which contains
both brandy and sherry—on the
trail. When the friend said she
might stop baking it, they told
her, “You can’t quit. We have to
have it for our backpacking
trips!” Ms. Udick says.
In Sacramento, Mr. Haskel,
who works for the Pacific Crest
Trail Association, planned to go
backpacking this week, with
some panforte—an Italian fruitcake. “I just like having something in my pack that is a real
decadent treat,” he said. Such
treats also tend to be sturdier.
“If I bring a scone or muffin out,
it’s going to be powder in a Ziploc bag.”
.
A7A | Friday, December 29, 2017
NY
* *****
THE WALL STREET JOURNAL.
GREATER NEW YORK
Fire in the Bronx Kills 12, Injures Others
Responders searched
for other victims after
flames were put out;
‘unspeakable tragedy’
NEW YORK—At least 12
people were killed and four
others were critically injured
on Thursday in a Bronx blaze
that New York City Mayor Bill
de Blasio called the worst such
tragedy in years.
“The middle of the holiday
season is a time when families
are together. Tonight here in
the Bronx there are families
that have been torn apart,” Mr.
de Blasio said. “This is the
worst fire tragedy we have
seen in this city in at least a
quarter-century.”
The youngest victim was 1
year old and the oldest was
over 50, according to Fire Department of New York Commissioner Daniel Nigro.
Firefighters were searching 2363 Prospect Ave. for
other victims at 10 p.m.
Thursday after the fire was
put out. “Even though it’s
horrible to report that 12 are
dead already, we may lose
others as well,” Mr. de Blasio
said. He called the fire an
“unspeakable tragedy.”
Firefighters rescued 12 people from the building who
were expected to survive, the
mayor said.
The blaze began around
6:50 p.m. on the first floor of
the apartment building, Mr.
Nigro said. It quickly spread
throughout the five-story
building, which had 25 apartments and is near the Bronx
Zoo. More than 160 firefighters battled the blaze, officials
said. The cause of the fire
wasn’t immediately clear.
City officials said on Thursday that displaced families
could gather at Crotona International High School in the
Bronx.
Dozens of Bronx residents
gathered near the apartment
building on Thursday night in
10-degree weather. One man,
who didn’t live in the building,
FROM TOP: FRANK FRANKLIN II/ASSOCIATED PRESS; AMR ALFIKY/REUTERS
BY ZOLAN KANNO-YOUNGS
The blaze began around 6:50 p.m. Thursday in a Prospect Avenue apartment building. Firefighters rescued 12 people from the building who were expected to survive.
offered a hot drink to Luz
Hernandez and her husband,
who had escaped the fire and
were wrapped in Red Cross
blankets.
The Hernandezes were in
their home on the fourth floor
of the building at the time of
the fire. Mrs. Hernandez, a
Spanish-speaking 37-year-old
home attendant, said she lived
in her apartment for 18 years.
At first, she only smelled
smoke.
“Everything was black,
pitch black,” said her nephew,
Christopher Rodriguez, who
translated for her. “So when
she saw that it was all pitch
black, she came out the fire escape.”
Mrs. Hernandez only had
time to hurry out of the fire
escape with her husband and
her two sons, 16 and 11 years
old. They couldn’t save any of
their possessions.
“She climbed all the way
down,” Mr. Rodriguez said.
Mrs. Hernandez said on her
way down she saw two adults
and two girls, with serious
burns, being carried out by
firefighters.
Nearby, another distraught
mother ran up to the caution
tape and asked a firefighter if
she could pass through.
“My kids are there!” she
said pointing at the building.
She wasn’t allowed to enter
the site.
Jury Is Still Out on New Jersey Bail Changes De Blasio
Earlier this year, Tyler Hubbard got into a fight with his
stepfather. The two fell on the
floor and Mr. Hubbard said a
knife he had brandished in
self-defense slashed his stepfather’s shin.
Mr. Hubbard, 22, who lives
in Eatontown, N.J., was
charged with second-degree
aggravated assault. A judge released him without bail pending his trial.
Pretrial freedom would
have been less likely for Mr.
Hubbard before the state overhauled its criminal justice system on Jan. 1, 2016 to largely
eliminate bail. A judge probably would have required him
to post bail of $35,000 to
$100,000, far beyond what he
could afford, to get out of jail.
“It was wonderful,” said Mr.
Hubbard, who works as an
auto mechanic. He pleaded
guilty in September to thirddegree aggravated assault. “I
got to keep my job,” he said.
Supporters of the changes
say bail—a deposit designed to
ensure a defendant shows up
to court—is an unfair system
because poor people often remain behind bars, while
wealthier defendants pay their
way out.
The overhaul has resulted
in a sea change in New Jersey.
From January through Nov. 13,
judges required 43 people to
post bail, according to courtsystem data, compared with
hundreds of thousands the
previous year. From January
through October, the number
of people awaiting trial in jail
has decreased by 17% statewide.
“All eyes are on New Jersey,” said Jeremy Travis, senior vice president of criminal
justice at the Laura and John
Arnold Foundation, a nonprofit that developed the algorithm New Jersey judges use
to help determine if defendants should be jailed. “The
fact that a major state has undertaken comprehensive re-
MASON LEVINSON FOR THE ACLU-NJ
BY CORINNE RAMEY
Tyler Hubbard was released without bail after an arrest for assault.
Bondsman Adapts
To Slowing Business
NEWARK—Down the street
from the Essex County Courthouse, the red awning of All USA
Bail Bonds promises an “E-Z payment plan” for those looking to
get out of jail.
On a recent afternoon, the
front door remained shut. The
chairs in the waiting area were
empty and end tables were blanketed with dust. “No one walks
into the office anymore,” owner
Ian Burrowes said.
No industry has been harder
hit by New Jersey’s changes to
its criminal-justice system than
the bail-bond business. Business
has decreased by at least 90%
this year, according to Ron
Olszowy, a New Jersey bail
bondsman and former president
of the Professional Bail Agents of
the United States, a trade group.
Some professionals have shifted
toward other work and many
have closed their businesses.
A New York City native, Mr.
Burrowes, 51 years old, served in
the Marine Corps in Panama and
the Persian Gulf. He operated a
limousine company until the Sept.
11, 2001, terrorist attacks, when
the business dried up, he said.
When he saw a bail bonds
storefront in a Michael Moore
documentary, it piqued his interest. “I asked myself the basic
Economics 101 question: What
can I do to survive in this economy?” he said. “I came up with
funeral homes and bail bonds.”
Today, Mr. Burrowes mostly
deals with older cases, for bonds
he wrote before the bail changes.
He laid off five of his eight employees and says he only makes
enough to cover costs such as
salaries, rent and electricity.
Mr. Burrowes said he may
get into the immigration-bail
business, which involves bailing
out immigrants from detention
centers. “It looks like I may be going that way for survival’s sake,”
he said.
form is a very important milestone.”
States including New Mexico, California and Ohio have
made changes or are considering changes to their bail systems.
A scorecard by the Pretrial
Justice Institute, a national
nonprofit that studies bail
practices, gave New Jersey an
“A” for its pretrial system, a
grade it gave no other state in
the country.
“Everywhere I go people
are saying wow, if it can be
done in a state like New Jersey—whatever that means—it
can be done here, too,” said
Cherise Fanno Burdeen, the institute’s chief executive.
Previously, New Jersey’s
constitution gave every defendant the right to bail. This
meant judges couldn’t jail
even dangerous defendants
before trial.
Now, judges can order a
dangerous defendant jailed
while waiting for trial. They
also can assign defendants
monitoring, such as house arrest or telephone check-ins.
The judges use a computer algorithm that looks at how
likely a defendant is to commit
another crime and to show up
to court.
While the algorithm offers
a recommendation, the final
say on whether to hold a defendant rests with the judge.
In June, after backlash from
some in law enforcement, the
court began recommending
those with serious gun charges
be held in jail.
Before the changes went
into effect, some in law-enforcement feared some defendants who are released without bail might go out and
commit other crimes. Some
worry that defendants are being released too quickly.
“Our officers are frustrated
that they risk their lives making arrests and sometimes the
defendant is released before
the paperwork is completed,”
said Newark Public Safety Director Anthony Ambrose.
Defense attorneys say people charged with crimes such
as gun offenses bemoan the
loss of bail. “People are getting locked up and kept in jail,
when in the past they were
able to secure their release on
bail,” said Kalman Geist, a
Woodland Park, N.J.-based defense attorney.
In many ways, the jury is
still out on the bail changes.
The court system doesn’t yet
have data showing if there are
racial disparities as to who
goes to jail and who is freed.
Different counties also have
differing percentages of people jailed, leading some to
question whether justice is being meted out equally everywhere. In Bergen County, 7%
of defendants were jailed
while awaiting trial, compared
with 34% in Atlantic County.
New Jersey officials say
they have more work to do,
particularly to make sure cultural changes—how judges,
prosecutors and others think
about jail—are permanent.
“I don’t think people realize
how significant this accomplishment is,” said Judge
Glenn Grant, acting administrative director of New Jersey’s courts. “But you can’t replace 300 years of history in
one year.”
Prepares
For Muted
Ceremony
BY MARA GAY
Four years ago, New York
City Mayor Bill de Blasio celebrated his inauguration as
the first Democrat to lead the
city in a generation with a
star-studded soiree that included Susan Sarandon, former President Bill Clinton
and Hillary Clinton, and other
celebrities.
The second time around,
Mr. de Blasio’s noon swearingin ceremony on the steps of
City Hall on Monday is shaping up to be a more subdued
affair. “We’re not looking to
do anything fancy here,” the
mayor said at a news conference Thursday.
The mayor, the first Democrat to be elected to two terms
in New York City since Ed
Koch, has put forward few
new policy ideas for his second term. Instead, he has
vowed to make good on and
expand longstanding initiatives such as a plan to preserve and build 300,000 units
of affordable housing.
The Clintons were invited
but didn’t respond, a de Blasio
spokesman said. The mayor
didn’t endorse Mrs. Clinton for
president until October 2016
because he said he was waiting to hear her vision for addressing income inequality.
New York Gov. Andrew
Cuomo, a fellow Democrat
with whom Mr. de Blasio has
bitterly feuded with during the
past four years, also is skipping the New Year’s Day event.
The governor plans to be on
Long Island, swearing in new
Nassau County Executive
Laura Curran, said Rich Azzopardi, a Cuomo aide. “It’s
going to be a great moment. A
new chapter for Nassau
County,” he said.
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | A7B
NY
* * * *
GREATER NEW YORK
ANDREW KELLY/REUTERS
Those
braving
frigid
weather to enjoy the New
Year’s Eve celebration in
Times Square can expect additional bomb-sniffing dogs, police snipers and patrol officers
in the wake of recent terrorist
attacks in New York City, police officials said on Thursday.
Commissioner
James
O’Neill said the New York Police Department analyzed recent attacks in the city, including a truck assault that killed
eight in October and the
botched suicide bombing in
the Port Authority Bus Terminal this month, as well as
other attacks world-wide,
while planning security for the
festivities.
There is no specific or credible terrorist threat against
the city but NYPD Chief of
Counterterrorism James Waters said Islamic State released videos recently showing
images of New York City and
Cardinal Timothy Dolan.
“This is their regular runof-the-mill propaganda but
they’ve been talking about
Christmas and New Years for
quite some time,” Chief Waters said.
After the Port Authority attempted bombing, the department issued officers a video
accessible on their smartphones that outlines how to
respond to a suicide bombing,
he said. The video instructs
the officers to get bystanders
away and then try to stop the
suspect, while working with
the bomb squad.
Nonauthorized trucks won’t
be allowed to run near Times
Square, and parking garages
will be closed, Chief of Patrol
Terence Monahan said.
Sanitation trucks and NYPD
bollards will surround Times
Square, Chief Waters said, to
guard against vehicle attacks.
Pedestrians will enter Times
Square through 12 access
points, each manned with security dogs and heavy-weapons
teams, Chief Monahan said. Officers will check spectators’
belongings; no large bags will
be allowed in the area.
Attendees will walk through
a metal detector. They will
then be screened a second
time, before entering metal
pens, Chief Monahan said.
Bag checks also will be conducted on trains throughout
the city, he said.
Heavy-weapon
squads,
bomb-sniffing dogs, and F.B.I.
personnel will be stationed
throughout the Times Square
area, Chief Monahan said. Officers will be working with the
staff of area hotels to prevent
attacks, he said.
There will be a major police
presence in Brooklyn’s Coney
Island, which also hosts celebrations, as well as in Central
Park.
“Do not hesitate to go up to
a cop if there’s something that
makes you feel uncomfortable,” Chief Monahan said.
NYPD officers provided security in Times Square on Thursday.
Visitors experienced the National Geographic Encounter: Ocean Odyssey in New York City’s Times Square.
Times Square Fun For All
Three new major attractions offer tourists and locals a variety of experiences
BY CHARLES PASSY
I came, I
saw, I exited
through the
gift shop.
That might
be the new
buzz phrase for visitors to
New York’s Times Square. In
the past year, no fewer than
three major attractions—Gulliver’s Gate, National Geographic Encounter: Ocean Odyssey and the NFL Experience
—have opened in the city’s
main tourist hub.
Then again, what else are
folks supposed to do in Times
Square, particularly if they’re
not taking in a Broadway
show? But with the big New
Year’s Eve ballFOOD &
drop celebration
CULTURE
around the corner, my curiosity was piqued
about Times Square and the
new attractions. So I recently
visited all three.
First stop: National Geographic Encounter. The concept is that you are taking a
journey across the Pacific
Ocean and “encountering” sea
creatures. No actual living
fish or marine mammals are
on display. Instead, the attraction has you interacting with
animated versions in various
settings, kinda like a largerthan-life videogame.
At best, it can be slightly
amusing and maybe a tad terrifying. I won’t give away too
much, but let’s say it is no fun
being a baitfish. At worst, the
exhibit feels like a watereddown (no pun intended) version of a trip to an aquarium.
Navigating the
New Attractions
MARY ALTAFFER/ASSOCIATED PRESS
BY ZOLAN KANNO YOUNGS
DIANE BONDAREFF/INVISION FOR NATIONAL GEOGRAPHIC ENCOUNTER
New Year’s Eve
Security Will Be
Tight in Midtown
The New York City section of the Gulliver's Gate attraction.
You know, that place where
you see real fish and marine
mammals.
Alexander Svezia suggested
it was best to approach the
attraction with a less literal
perspective and “tap into your
inner 10-year-old.”
With Gulliver’s Gate, there
is a different promise: You get
to be a giant roaming the
world in a world of miniatures. The attraction is divided into various cities,
countries and regions, along
with a mini airport.
Here, I was able to keep my
inherent cynicism mostly in
check, if for no other reason
than everything is rendered
with extraordinary detail.
But I did have moments of
pause. While the model makers generally get the buildings
and structures right, they
take liberties with other details. In their New York, Madison Square Garden sits across
the street from the Meatpacking District. Jason Hackett,
who heads the marketing for
Gulliver’s Gate, said, in effect,
I needed to chill: “The idea is
GREATER NEW YORK WATCH
BROOKLYN
CONNECTICUT
Officers Suspended
Over 911 Response
Fire at Barn Leaves
Several Horses Dead
The New York Police Department suspended two officers as
it investigates their response to a
domestic-violence incident that
resulted in the death of a 22year-old Brooklyn woman, law-enforcement officials said Thursday.
The officers responded to a
911 call about a disturbance inside
the woman’s home in Crown
Heights but didn’t get out of their
police car to investigate, an official familiar with the investigation
said. They asked the dispatcher to
contact the 911 caller, the official
said. When the dispatcher’s call
went to voicemail, the officers
left, the official said.
An hour later, two officers responding to another 911 call,
found Tonie Wells dead at the
bottom of the basement stairs
and her young child crying in the
apartment, police said.
Her husband, Barry Wells, 29,
was arrested Wednesday in connection with the incident, Chief of
Detectives Robert Boyce said on
Thursday. It wasn’t known if Mr.
Wells had a lawyer.
At the time, Mr. Wells had
been released from custody on
$5,000 bail for allegedly assaulting Ms. Wells at her mother’s
Manhattan home in September. In
the past, police had responded to
other domestic-violence incidents
involving the couple, who had
been married since April, Chief
Boyce said.
—Zolan Kanno-Youngs
Several horses have been
found dead after a barn fire at
an equestrian training and boarding farm in Connecticut, authorities said.
The fire at Folly Farm in
Simsbury was reported shortly
before 7 a.m. Thursday and was
extinguished in minutes as more
than 30 firefighters from Simsbury and neighboring Avon re-
The attraction: National
Geographic Encounter: Ocean
Odyssey
How it’s billed: An “interactive journey across the sea.”
Standard adult admission: $39.50
How much it cost to
create: Officials wouldn’t say
Size: 60,000 square feet
Time it takes to see:
60-90 minutes
The attraction: NFL Experience
How it’s billed: An “immersive attraction…that
brings fans closer than ever
to the National Football
League and their favorite
teams.”
Standard adult admission: $39
How much it cost to
create: $30 million
Size: 40,000 square feet
Time it takes to see:
60-90 minutes
CHARLES P. ROGERS BEDS DIRECT
sponded to the scene in subfreezing temperatures.
Fire officials said none of the
horses in the barn survived. The
exact number of horses that perished was not immediately clear.
The cause of the fire and exactly how the horses died are
under investigation.
Folly Farm is a 175-acre family-owned farm about 10 miles
northwest of Hartford that offers horse riding and competition
lessons, boarding and polo instruction.
—Associated Press
INVESTIGATION
Authorities Seize Fake
Designer Merchandise
Police in New York have arrested a father and his two sons
who they say had $25 million
worth of counterfeit designer accessories in their possession.
The 55-year-old Long Island
man and his 22-year-old and 18year-old sons were arrested following a six-month investigation.
Authorities said they seized
fake watches, belts and purses
from a warehouse in New Hyde
Park worth millions of dollars. The
men dealt fake accessories that
mimicked brands such as Rolex,
Gucci and Burberry through their
business, Broadway Watch Outlet
Co., authorities said.
—Associated Press
CRAIG MATTHEWS/THE PRESS OF ATLANTIC CITY/ASSOCIATED PRESS
NEW JERSEY
The Tropicana resort in Atlantic City prepped for New Year’s parties.
to give an impression of New
York.”
For my final stop, it was
time to get physical. Never
mind tapping into your inner
10-year-old. At the NFL Experience, you tap into your inner
Eli Manning—well, the winning version hopefully.
The attraction features
some Hall of Fame-style exhibitions, in addition to a “fourdimension” movie that recreates the experience of being
an NFL player. As someone
who watches football only
sporadically, I can’t say I’m
the NFL Experience’s target
market. I embarrassed myself
at almost every attempt to
pass or block.
So, I didn’t quite leave the
NFL Experience feeling victorious (or that I got my
money’s worth).
Perhaps best of all: The gift
shop leads to a restaurant and
bar, where you can enjoy a
cold one while taking in the
bustling street. It seems the
top attraction in Times
Square may still be Times
Square itself.
The attraction: Gulliver’s
Gate
How it’s billed: “A technologically advanced, interactive
and immersive world of miniatures.”
Standard adult admission: $36
How much it cost to
create: $40 million
Size: Nearly 50,000
square feet
Time it takes to see:
90-120 minutes
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New Year’s Swims Are
Put on Ice by Weather
Polar bear plunges planned in
two southern New Jersey towns
on New Year’s Day have been canceled because organizers think it
will be too cold outside.
Ventnor officials said the
event’s organizers contacted them
with concerns about the safety of
participants who would be jumping
into the Atlantic Ocean. They noted
that the forecast calls for a high of
around 20 degrees on Monday.
Ocean City officials said Thursday
that their plunge had also been
canceled due to the bitter cold.
—Associated Press
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* *
THE WALL STREET JOURNAL.
LIFE&ARTS
SONY PICTURES CLASSICS (3)
A8 | Friday, December 29, 2017
FILM REVIEW | By Joe Morgenstern
Bening’s the Big Heat in ‘Film Stars’
She plays screen siren Gloria Grahame in her waning days when, terminally ill, she reconnects with a much younger former lover
THIS JUST IN. Annette Bening
can tell you everything you need
to know about her character in a
single, unfolding scene. That isn’t
news, of course, but it’s always
rewarding to see her in action,
even though her latest movie,
“Film Stars Don’t Die In Liverpool,” doesn’t measure up to her
performance.
Ms. Bening plays the once-lustrous Hollywood star Gloria Grahame, who has been touring the
English provinces as Amanda in a
stage production of “The Glass
Menagerie.” Alone and frightened
after falling desperately ill, Gloria
turns to Peter Turner (Jamie
Bell), a much younger man, and
sometime actor, with whom she’d
had an affair several years earlier,
starting in 1978. “I’ll get better,”
she tells Peter, sitting in bed in
his family’s modest Liverpool
home. Her tone is bright but beseeching, and scarily detached;
she wants him to believe what she
doesn’t believe herself. When he
asks “What about your family?”
she turns schoolgirl-sweet and
says he and his family are all she
needs. When he urges her to go to
a hospital, she becomes a furious,
almost feral child and barks “No!”
In no time flat, and with a full
spectrum of emotional colors, Ms.
Bening gives us a portrait of a
volatile woman who has come
Top, Annette Bening as Gloria
Grahame; left, Jamie Bell as Peter
Turner; above, the real Gloria
Grahame and Peter Turner c. 1979.
back to a place where love once
was. (The cast includes two other
great actresses in lesser roles: Julie Walters as Peter’s mother,
Bella Turner, and Vanessa Redgrave as Gloria’s mother, Jeanne
McDougall.)
The film was directed by Paul
McGuigan from an adaptation of
Peter Turner’s memoir of the
same name. The screenplay, by
Matt Greenhalgh, flashes back to
the couple’s first meeting in a
London boarding house, where a
radiantly charming Gloria is eager
to dance and finds a superb partner in Peter: Mr. Bell, you may remember, made his movie debut 17
years ago as the aspiring young
dancer of the title in “Billy Elliott,” and he’s greatly appealing
here. Subsequent flashbacks
evoke the couple’s romantic, or
fraught, encounters in California
and New York. Their breakup, in
Manhattan, is examined—and belabored—from his point of view
and then hers. (The excellent cinematographer, Urszula Pontikos,
lights some of her scenes like atmospheric stage sets. Occasionally
she evokes the rear-projection effects of Gloria Grahame’s noir
classics, as in a scene in Malibu
that pays its respects to Grahame
and Humphrey Bogart‘s beach
scene from “In a Lonely Place.”)
The movie’s mosaic structure is
a reasonable alternative to a
straight-line narrative, but it
weakens the story’s impact, since
it hops all over the place, and
can’t create drama, of which there
isn’t all that much in the story of
two people falling in and then out
of love. Nor does it solve the
problem of the film’s predictability. When Gloria, in terrible pain
at the outset, insists that it’s only
gas, we know better, and we’re
meant to know better, but knowing doesn’t make the heart beat
faster.
“Film Stars Don’t Die In Liverpool” is an interesting footnote to
Hollywood history: Gloria Grahame, a distinctive star with an
inimitable style, did have a love
affair with an Englishman almost
30 years her junior; did fall on
hard times, and then, in physical
and spiritual torment, did seek
support and solace in her former
lover. The fleshing out of the
story feels thin, and sometimes
nakedly contrived, as in a passage
toward the end when Peter and
Gloria, on an empty stage in a local theater, recite lines to each
other from Shakespeare’s “Romeo
and Juliet.” Yet the film has moments of surprising grace and
tenderness. Above all it has Ms.
Bening’s Gloria, still alive to the
world though she’s in danger of
leaving it.
TELEVISION REVIEW | By Dorothy Rabinowitz
FOX
ADVENTURES IN TERROR
Left to right, Peter Krause, Oliver Stark, Aisha Hinds and Angela Bassett
IT TAKES ONLY the opening minutes of “9-1-1”—their everyday tone,
their mere flash of a look at lives
touched by unhappy reality (unhappy but not unusual)—to suggest
rich drama afoot. Here’s a woman
in her early 40s still upset, a year
later, over being ditched by her
boyfriend—a woman torn by sorrow for her mother, an Alzheimer’s
victim, and by worry for the people
whose emergency calls she fields at
a 911 call center in Los Angeles. In
short, an introduction oozing with
potential for the sodden and the
shopworn—which, despite its subject, “9-1-1” is decidedly not.
Abby, the call-center operator, is
portrayed by Connie Britton of
“Friday Night Lights” fame, and
her afflicted but mordantly observant mother by Mariette Hartley—
two good reasons for the promise
of that early scene. There will be
more of that immediately after,
when the first responders go into
action, under the leadership of
Bobby, a deceptively informal name
for the chief. He’s played by Peter
Krause (“Six Feet Under”), who has
lost none of his capacity for exuding untouchable authority and profound vulnerability at the same
time, all seasoned by an embracing
sympathy. To behold Bobby trying
to talk a would-be jumper off a
very high bridge is to feel the powers of sympathy Mr. Krause wields
as an actor.
All the more reason to appreciate the complexity his character
adds to the series. After troubles of
his own as an alcoholic and allaround dropout for several years,
Bobby goes to confession regularly
as a reminder of that past, as he
explains to a young priest who
looks, despite the collar he wears,
far more like someone in need of
absolution than the man before
him, radiating calm assurance.
Which doesn’t mean that Bobby
controls his temper. He’s a dynamo
of unforgiving fury at any dereliction of duty by his first-responders
team, as Buck (Oliver Stark), an eager new member, learns when he’s
found joyfully connecting with every sexy-enough female he meets
Please see TELEVISION page A9
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | A9
* * * *
LIFE & ARTS
FILM REVIEW | By Joe Morgenstern
An Exploration of Revenge
And Its Limits
their son, Rocco, a sweet boy with
owlish specs who plays the violin,
and solid citizens of Germany until
a terrorist bomb leaves Katja widowed, childless and all but paralyzed by grief.
At that point two conflicting
agendas kick in. For the police,
it’s an assumption that a terrorist
act in a Turkish neighborhood
must somehow be connected with
the Muslims or Kurds who live
there. For the filmmaker, Mr.
Akin, who wrote the script with
Hark Bohm, it’s a desire to address the real-life violence that
neo-Nazi groups inflict on Turks
living in Germany. The resulting
tension is what drives the second
section, “Justice,” an engrossing
courtroom procedural, and the
outcome of the trial is what sends
Katja, in a third section called
“The Sea,” to a seaside town in
Greece, where her purpose does
not include sunbathing.
I’ve long admired Mr. Akin’s
features: “Head On,” a drama of
passion with comic dimensions;
“Soul Kitchen,” an anarchic foodie
farce; “The Edge of Heaven,” a lyrical mystery fueled by don’t-givea-damn daring; “Crossing the
Bridge: The Sound of Istanbul,” a
joyous music documentary. And
the summer before last I called
Ms. Kruger the dazzling revelation
of an ensemble cast in a Bryan
Cranston thriller called “The Infiltrator.” In other words, I was with
“In the Fade” all the way, hoping
it would fulfill the potential of its
premise. Once in Greece, though,
Ms. Kruger’s Katja turns actionheroine in a way that’s more silly
than exciting, and Mr. Akin’s
sharply drawn film grows clumsy
and formulaic. Agendas can weigh
artists down, even when they’re
devoted to such admirable ends as
exposing the hate crimes of white
supremacists.
MAGNOLIA PICTURES (2)
“IN THE FADE,” a thriller by the
Turkish-German director Fatih
Akin, explores the subject of revenge—and its limits—through a
street-smart German woman
named Katja; she’s played with
seething purpose by Diane Kruger,
who has found a role fully worthy
of her talent after much too long a
time. But the film demonstrates the
limits of performance. Superb as
Ms. Kruger is, there’s nothing she
can do to keep the taut, heartfelt
narrative from going off the rails.
The first of three sections, “The
Family,” finds Katja where she
loves to be, in the warmth and tumult of married life in a Turkish
section of Hamburg. She and her
Kurdish husband, Nuri (Numan
Acar), are no angels. He’s an excon, a former drug dealer who got
caught and got straight. She’s a
casual beauty with elegant tattoos
that suggest a raffish past. As parents, though, they’re devoted to
Diane Kruger, left, stars in ‘In the Fade,’ directed by Fatih Akin; above, a scene from the film.
TELEVISION
Continued from page A8
in the line of duty—couplings that take
place everywhere, including the firetruck.
Here we note a neon-lit nod to current
events as an earnest Bobby delivers a scathing rebuke on the subject of Buck’s disrespect for women on the job—a standout moment, and not the best kind, in a script
that’s otherwise impressively free of the
clangy artifice presented as conversation in
TV workplace dramas.
That relative absence of artifice makes a
powerhouse of scenes whose delicate subjects
are prime candidates for muddling: the kind
that involve Detective Athena Grant of the
LAPD (Angela Bassett), whose domestic life
includes a husband, Michael (Rockmond Dunbar), who isn’t the heterosexual male the couple’s children thought he was. It leads to a ferocious encounter, gloves off, bitter in its
passions—immensely effective drama in all.
There are, true, few scenes in this pilot
episode (writers Ryan Murphy, Brad Falchuk
and Tim Minear) about which you couldn’t
say much the same. A series about 911 re-
FOX
sponders comes with built-in advantages in
the drama department. Even so, there’s no
missing the exceptional depth of detail, the
emotional range and enterprise that undergird standard events—trying, for instance,
to breathe life back into a swimmer knocked
unconscious—and make them affecting.
That’s in addition to the fearful suspense
that attaches, along with wild hope, to every
effort at rescue—not all of them succeed—
and it’s a crucial addition.
There are ventures, involving an infant
who may or may not be trapped in the most
improbable of places, that broaden into epic
battles that feel like mini-films in themselves in their complexity and chaotic busyness, all against a background of a large,
downscale apartment house where a furiously compelling Detective Grant is searching hallways and kicking doors in.
Future episodes concern emergencies like
a roller-coaster malfunction, a windstorm at
a children’s birthday party, a plane crash in
the Pacific—all likely to be adventures in
terror worth waiting for.
‘9-1-1’
Begins Wednesday, 9 p.m., on Fox
Connie Britton
Weather
The WSJ Daily Crossword | Edited by Mike Shenk
PUZZLE
CONTEST
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
20s 0s
V
Vancouver
ary
Calgary
-0s
10s
Helena
Eugene
60s Reno
50s Sacramento
Billings
i
Boise
Salt
alt Lake C
City
h
Omaha
Denver
Santaa F
Fe
Los A
Angel
Angeles
70s
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Des
Ph
Phoenix
50s
El P
Paso
-0s
Anchorage
h g
10s A
20s
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Detroit
Chic
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Chicago
Cleve d
Cleveland
b h
Indianapolis Pittsburgh
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Springfield
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Boston
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Philadelphia
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Wash., D.C.
Hi
17
67
28
76
24
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54
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Today
Lo W
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51 c
19 pc
46 s
18 sf
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42 r
34 pc
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44 pc
24 s
40 r
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25 s
Tomorrow
Hi Lo W
2 -9 pc
72 50 s
28 18 sn
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14 -1 c
48 31 c
61 36 pc
19 2 c
49 28 pc
58 45 pc
58 24 s
48 33 pc
-7 -22 pc
37 21 sf
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
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81 62 s
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41 35 sh
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Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
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Milan
Moscow
Mumbai
Paris
Rio de Janeiro
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Rome
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52 47 r
45 41 sh
81 59 pc
72 60 s
53 43 sh
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58 42 pc
85 73 pc
70 51 pc
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13
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16
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29 Butler on a
disclaimer
19
20
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31 Comic who
22
23
24
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headlined the
for seniors
25 26
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34
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37
38
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42
43
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5 Vault part
46
47
48
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6 Rent-___
33 Sanctioned
49 50
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7 “Outta my way!” 39 Counselor to
52 53 54
55 56 57
58
59 60
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8 Stadium
40 Many bills advise
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64
65
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48 Greasy mineral
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PLAY GROUNDS | By Marie Kelly
15 Post-scrimmage 50 Makes mistakes
52 Nipponese
45 Crime lab
The answer to
22 Been
woe
noodles
specimen
this week’s contest
recumbent
17 HHH
crossword is a kind
53 Eerie hoverers
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of competition.
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54 Stare stupidly
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47 •American rabbit 23 First killer whale 55 Klutz’s comment
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49 Herring home
dishes
56 Dog with a
trained to
1 Olive family tree
51 Tarbell and Wells
corded coat
30 Gone from the
perform
4 Balance units
52 •Cereal
base
57 Submachine gun
25 Religious
9 Thick cut
promoted by a
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59
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26
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35 “Witness” group
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27 Jazz saxophonist 60 Brother of Ivanka
36 Unexciting
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37 Drink made with
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63 Hefty item
cassis
16 •Didn’t stoop to
61 Breath ___
38 •Evening shows
18 List lead-in
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41 Constant critic
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19 “Washington
D A T A
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42 Seller of
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20 •Adolescent
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65 Petitions
44 Raison ___
T I N
O P A R T T I M E R
1
2
3
4
5
6
7
8
9
10
11
12
Email your answer—in the subject line—to crosswordcontest@wsj.com
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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
17 14 c
23 21 c
Atlanta
50 34 s
51 28 pc
Austin
54 41 c
65 36 c
Baltimore
32 19 pc 32 18 sn
Boise
40 33 c
40 18 pc
Boston
17 8 c
23 12 sn
Burlington
7 -7 c
11 -6 c
Charlotte
47 27 s
54 26 pc
Chicago
17 6 sn
8 2 pc
Cleveland
19 14 sf 21 11 sn
Dallas
49 38 c
49 34 r
Denver
60 23 pc 45 16 c
Detroit
22 12 sf 19 5 sf
Honolulu
80 66 s
79 68 pc
Houston
53 45 c
63 50 r
Indianapolis
24 15 sn 15 -4 sn
Kansas City
31 7 c
10 -5 pc
Las Vegas
67 43 s
66 44 pc
Little Rock
44 28 s
44 19 pc
Los Angeles
80 54 s
73 51 s
Miami
81 64 pc 81 62 pc
Milwaukee
16 2 sf 10 4 pc
Minneapolis
5 -11 sn -4 -14 pc
Nashville
40 25 s
42 16 c
New Orleans
55 41 pc 62 51 r
New York City
24 18 pc 27 17 sn
Oklahoma City
45 24 c
32 16 c
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Mobile
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San
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Washington
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Atlanta
Little Rock
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Birmingham
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Charleston Richmond
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Nashville
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Memphis
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Buffalo
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St.. Louis
Lou
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Louisville
70s
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Toronto
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Wichita
70s
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Albuquerque
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Tucson
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Ottawa
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San Diego
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Seattle
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THE WALL STREET JOURNAL.
A10 | Friday, December 29, 2017
SPORTS
Los Angeles
THERE IS NO MORE important
talent evaluation in football than
figuring out whether a quarterback
is good or bad. The coaches who
spot good quarterbacks get to keep
their jobs. The coaches who pick
bad quarterbacks get fired.
But coaches are still wrong an
unfathomable amount for all the energy and resources they dedicate to
finding quarterbacks of the future.
And they were incredibly wrong
this year about the best player in
college football.
Baker Mayfield, this season’s runaway Heisman Trophy winner, is
one of the most accomplished college football players in memory. The
only thing missing on his résumé is
a national championship, but that
may be coming soon. He’s the reason that No. 2 Oklahoma is playing
No. 3 Georgia in the College Football
Playoff semifinal here on Monday.
And every school in college
football could’ve had Mayfield. He
was a walk-on. Twice.
Even the schools that took a
chance on Mayfield can’t bask in
the glory of recognizing the potential that everyone overlooked.
Texas Tech, where he started his
career as a walk-on, let him transfer after his freshman season.
Oklahoma, where he was also a
walk-on and has been the starter
for three seasons, only found out
he was enrolling at the same time
as the campus registrar.
As perhaps the most successful
player ever to fall through the
cracks of the sport’s powerful recruiting machine, Mayfield is the
latest example of a strange phenomenon: Football isn’t very good
at identifying the most talented
quarterbacks.
Mayfield went to Lake Travis
High School in Austin, Texas, a
fertile breeding ground of college
quarterbacks, but even his own
coaches admit that he was easy to
miss. He was short for a quarterback at 5-foot-11 back then. He
couldn’t run. He didn’t sling the
ball around the field like he does
now. He wasn’t his team’s starter
until his junior season. Pretty
much every team in the five major
conferences came away with the
same impression: Mayfield was not
worth a college scholarship.
“He didn’t look like a big-time
quarterback,” said Lake Travis
coach Hank Carter. “He played like
one. But he didn’t look like one.”
The recruiting website 247Sports
had Mayfield ranked 42nd nationally among pro-style quarterbacks
and the 1,029th player in his class.
ESPN put him behind 68 other
pocket quarterbacks—and more
than half of those 68 quarterbacks
never started a single top-level college game. Some picked other positions. Some picked other sports altogether. Even the ones who turned
into NFL quarterbacks weren’t
highly regarded. Jared Goff was
COLLEGE FOOTBALL PLAYOFF
How College Football Was
Wrong About Mayfield
Oklahoma’s star quarterback Baker Mayfield won the Heisman Trophy,
but only after walking on at two schools
GREGORY SHAMUS/GETTY IMAGES
BY BEN COHEN
AND ANDREW BEATON
Baker Mayfield is the latest example showing football isn’t very good at identifying the most talented quarterbacks.
drafted No. 1 overall and now has
the Rams in the playoffs. But he
was ranked No. 20 in the class.
Over the last five NFL drafts, only
four of the 12 first-round quarterbacks were rated in the top-100
prospects in their recruiting classes.
Mayfield was especially disadvantaged by not starting until his
junior season. The sport’s elite
programs had already used the
scholarships they allotted for
quarterbacks by then.
“Teams were finding quarterbacks well before their senior seasons and locking them in,” said
Greg Powers, the national recruiting expert for 247Sports. “By the
time Mayfield was the guy, a lot of
the big teams were filled up.”
But he believed that he could
play at the highest level of college
football even when no one else
did. Mayfield wasn’t interested in
playing for the type of school that
would be happy to offer a scholarship to the 69th best quarterback
in the country. He decided to walkon at Texas Tech instead.
It didn’t take long for Mayfield
to climb the Texas Tech depth
chart. By the first game of the season, he was starting as a true
freshman walk-on. But after he
went down with an injury, it
wasn’t clear if Mayfield would re-
main the starter with future NFL
quarterbacks like Davis Webb and
Patrick Mahomes on the roster. It
wasn’t even clear if Mayfield
would have a scholarship.
He decided to transfer. Carter
offered to help manage his second
recruiting process. Mayfield said
that wouldn’t be necessary.
“What the heck are you going to
do?” Carter said.
“I’m going to walk on at OU,”
Mayfield said.
The only problem was that Mayfield hadn’t bothered to inform
Oklahoma’s coach. Mayfield finally
introduced himself to Bob Stoops
at a team dinner the night before
National Signing Day in 2014, as
the coaching staff was busy securing commitments from blue-chip
high-school players.
What happened next is the stuff
of Oklahoma legend. Mayfield won
the starting job—again. The Sooners
are 34-5 in the last three years, and
this season has been his most splendid yet. Mayfield won the Heisman
by the third-widest margin ever,
and it wouldn’t be a surprise if
Oklahoma beats Georgia and Clemson or Alabama for the title.
“They’ve got the best player,” Carter
said, “and the team with the best
player in the country usually wins.”
Recruiting any position in college football can be a nightmare.
But coaches say finding quarterbacks is particularly fraught because it amounts to a wild guess as
to whether a player will be able to
handle one of the most cerebral
position in sports.
When Alabama coach Nick Saban referred to a quarterback having “the right stuff” in a news conference last year, even putting air
quotes around the phrase, he was
talking about those less obvious attributes: judgment, decision-making and how someone processes information under the pressure of
100,000 screaming fans.
“This is probably why there’s
more mistakes on quarterbacks
picked in the first round than anything else in the NFL,” Saban said.
The current quarterback at Lake
Travis has benefited from playing
in football’s post-Mayfield world.
Matthew Baldwin wasn’t the starter
until his senior year, even later
than Mayfield, and the only colleges
interested in him were the types of
places that also have squash teams,
Ivy League schools like Brown, Columbia and Dartmouth.
Once the season began, though,
Baldwin was too good to ignore. As
Lake Travis made a deep run in the
Texas state playoffs, he played five
more games than Mayfield. The
crowds were bigger. The competition was better. And the colleges
that wish they had Mayfield focused their attention on Baldwin.
He committed this month to one
of the many schools impressed
enough to offer a scholarship much
later than usual. Next season he’ll
be a quarterback at Ohio State.
“Nobody wants to miss now on
the next Baker Mayfield,” Powers
said.
NFL | By Jason Gay
MY PEP TALK TO THE 0-15 CLEVELAND BROWNS
I’m just one more ignominy in
an ignominious season. That’s one
upside to becoming a member of
the Cleveland Browns: you learn
pretty quickly what “ignominy”
and “ignominious” mean.
But hear me out. You know why?
I believe you can get a seasonfinishing win—end the year with a
blaze of 1-15 glory.
Let’s do it to shut down the haters, the doubters, the idiot colum-
As a member of the
Browns, you learn pretty
quickly what ‘ignominy’
and ‘ignominious’ mean.
nists who lazily use the Browns as
a go-to joke whenever they need
one. Let’s do it for coach Hue Jackson, who remains steadfast and
upbeat, despite an 1-30 record as
Browns coach.
Wait, is that a typo? Hue Jackson is 1-30? Yikes.
Let’s do it foremost for the people of Cleveland, who deserve better than this. LeBron James and
the Cavaliers brought the city
some recent championship splendor, but there’s been too much
football suffering and sadness.
There have also been too many
quarterbacks. Here’s the infamous
list of Browns quarterbacks since
the team was revived in 1999: Tim
Couch, Ty Detmer, Doug Pederson
(yes, now the Eagles coach), Spergon Wynn, Kelly Holcomb, Vincent
Price, Jeff Garcia, Luke McCown,
Elton John, Trent Dilfer, Charlie
Frye, Dennis Hopper, Derek Ander-
DAVID RICHARD/ASSOCIATED PRESS
This Sunday, the winless Cleveland Browns
will face the Pittsburgh
Steelers—on the road—
trying to stave off becoming the second NFL
team to go 0-16 in the regular season. (Detroit in 2008 was the first.)
That’s right, not even the Cleveland Browns (who went 1-15 last
year) have gone 0-16. They’ve
never had a single winless season.
History is on the verge!
To the Cleveland front office: I
am volunteering to give a pregame
speech to the Browns. I’ll do it for
free, so long as you don’t make me
watch the game. Here are my prepared remarks:
Hey guys,
Look, I know I’m not an obvious choice to do the locker room
pep talk for your final game of
the season. Also, I am sorry I am
wearing pajamas, but this is my
0-15 look. I’m fed up with 2017,
and I’m tanking.
I’m sure you’d rather have
someone fancy talk to you—a real
motivational speaker, like Tony
Robbins, or a celebrity, like Frank
Stallone. Maybe the Browns should
have hired a famous CEO to come
fire you guys up with some corporate mumbo-jumbo. Or at least
hire a talking dog.
Instead, you get me: a weird,
confusing, possibly terrible pick.
But come on. I’ve seen how the
Browns draft. You guys love weird,
confusing, possibly terrible picks.
I’ll be candid: I’ve never played
a single down of organized tackle
football. I mean, look at me. I’m
afraid of physical contact in doubles tennis. If you put me on the
kickoff coverage team, I’d run
screaming off the field.
son, Brady Quinn, Ken Dorsey, Diane Sawyer, Bruce Gradkowski,
Colt McCoy, R2-D2, Jake Delhomme, Seneca Wallace, Brandon
Weeden, Steven Mnuchin, Thad
Lewis, Jason Campbell, Brian
Hoyer, Johnny Manziel, Connor
Shaw, Josh McCown, I cannot believe this list is so long, a drivethrough window at a highway
Arby’s has more continuity, Robert
Griffin III, Cody Kessler, a shopping cart from Heinen’s, I probably
have missed a couple names, DeShone Kizer and Kevin Hogan.
Phew. I need to lie down on the
floor for a couple of minutes.
It’s to the point that college prospects don’t want to come out of college for fear of getting drafted to
play in Cleveland. The talented UCLA
quarterback Josh Rosen said he’d
prefer to be drafted lower (and get
paid less money) than picked high
and wind up with the “wrong team.”
Everybody knows what he means
by “wrong team.” You! It’s insulting,
but how can you get mad at him?
It’s like getting mad at someone for
not going to a restaurant that’s had
a 19-year food poisoning scare.
I do have good news. There’s a
chance the Steelers might give up
on Sunday. There’s something on
the line for Pittsburgh going in—
they could still get the top AFC
seed if they win, and New England
flops to the Jets—but if the Steelers look up in the third quarter
and see the Patriots up by three
touchdowns, they’re probably going to take out all their starters
and put in a bunch of pine cones
and leftover Styrofoam peanuts.
You can do it. You guys can beat
the pine cones and leftover Styrofoam peanuts. I am pretty sure.
Alternatively: we could just not
go to the game. You know, skip it.
Forfeit. We could rent bikes and
ride around Pittsburgh, power up
those crazy city hills. We could go
get some sandwiches from Primanti Bros., catch the 12:45 showing
of “Lady Bird.”
Better yet: Do any of you guys
know how to fly a jet?
What if we sneak out of here
and get ourselves to the airport?
Steal the team plane and fly someplace warm, like Miami or Mexico.
While the Steelers are freezing
themselves in warm-ups, we can
be three-deep into margaritas at
the Radisson pool.
I think that’s a winning plan for
the 2017 Cleveland Browns, guys.
It’s either that, or more…ignominy.
.
Friday, December 29, 2017 | A11
THE WALL STREET JOURNAL.
OPINION
A Big, Beautiful Trump 2018 Issue
President
Trump is on
the hunt for a
2018 issue—a
strong followup to his taxPOTOMAC cut victory
that will moWATCH
tivate voters
By Kimberley
and gain biA. Strassel
partisan support. Democrats are pushing for an
infrastructure bill, inviting the
president to spend with them.
House GOP leaders are mulling entitlement reform—a noble goal, if unlikely in a midterm cycle.
Fortunately for the president, there’s a better idea out
there that’s already a Trump
theme. It’s also a sure winner
with the public, so Republicans ought to be able to pressure Democrats to join.
Let 2018 be the year of
civil-service reform—a rootand-branch overhaul of the
government itself. Call it Operation Drain the Swamp.
When Candidate Trump
first referred to “the swamp,”
he was talking about the bog
of Beltway lobbyists and “establishment” politicians. But
President Trump’s first year
in office has revealed that the
real swamp is the unchecked
power of those who actually
run Washington: the two million members of the federal
bureaucracy. That civil-servant corps was turbocharged
by the Obama administration’s rule-making binge, and
it now has more power—and
more media enablers—than
ever. We live in an adminis-
trative state, run by a leftleaning, self-interested governing class that is actively
hostile to any president with
a deregulatory or reform
agenda.
It’s Lois Lerner, the IRS official who used her powers to
silence conservative nonprofits. It’s the “anonymous” officials who leak national-security secrets daily. It’s the
General Services Administration officials who turned over
Trump transition emails to
Special Counsel Robert Mueller in the absence of a warrant. It’s the Consumer Financial
Protection
Bureau’s
Leandra English, who tried to
stage an agency coup. It’s the
EPA’s “Scientific Integrity Official” who has taken it upon
herself to investigate whether
Scott Pruitt is fit to serve in
the office to which he was
duly appointed. It’s the thousands of staffers across the
federal government who continue to pump out reports on
global warming and banking
regulations that undermine
administration policy.
More broadly, it is a federal
workforce whose pay and benefits are completely out of
whack with the private sector.
A 2011 American Enterprise
Institute study found federal
employees receive wages 14%
higher than what similar
workers in the private sector
earn. Factor in benefits and
the compensation premium
leaps to 61%. Nice, huh?
These huge payouts are the
result of automatic increases,
bonuses, seniority rules and
gold-plated pensions that are
all but extinct in the private
sector. The federal workforce
is also shielded by rules that
make it practically impossible
to fire or discipline bad employees, to relocate talent, or
to reassign duties. These protections embolden bureaucrats to violate rules. Why
was Ms. Lerner allowed to retire with full benefits? Because denying them would
have cost far more—and required years of effort.
Civil-service reform
could get bipartisan
support, even in a
rough election year.
It’s been nearly 40 years
since the last civil-service
overhaul. Trump appointees
are doing valiant work to shift
the bureaucracy by canceling
programs and using buyouts
to cut staff. White House
Counsel Don McGahn—a veteran at battling the federal
career elite—is recruiting a
generation of judicial nominees who are experts in administrative law. And Mick
Mulvaney, director of the Office of Management and Budget, tapped another administrative-law genius, Neomi
Rao, to head the deregulatory
effort.
Even so, Trump officials
spend most of their days
fighting rearguard actions
against their own employees
when they should be implementing the president’s broad
vision across the executive
branch. Since congressional
Republicans refuse to slash
agencies, the least they can do
is make oversight a priority.
Americans generally have a
higher opinion of federal
agencies than they do of Congress, though the Veterans Affairs and Justice departments
have seen their ratings slip in
recent years, as has the Environmental Protection Agency.
But government overhaul is
an issue that unites across
parties on grounds of accountability, fairness and
spending. Ask Wisconsin Gov.
Scott Walker.
Civil-service reform’s bipartisan appeal means it has a
shot in the Senate. The Chuck
Schumers and Elizabeth Warrens will fight for their federal union buddies. But will
Democrats like Jon Tester,
Claire McCaskill, Joe Manchin
and Joe Donnelly—who represent conservative or right-towork states—go to bat for the
likes of Lois Lerner? Will they
defend the CFPB, the majority
of whose employees take
home six-figure salaries, when
the median personal income
in the U.S. is about $31,000?
If Democrats insist on engaging in class warfare, Republicans should take on the
governing class. Washington
is now home to a bureaucratic
elite, fantastically paid and
protected, divorced from economic reality, and self-invested in thwarting conservative policy efforts. Let’s drain
the swamp, or at least make it
smaller.
Write to kim@wsj.com.
Psychologists Shouldn’t Ignore the Soul
HOUSES OF In my first
Even though Sigmund spiritual solace and connection spirituality with me?” A negaWORSHIP
six months Freud’s work is largely discred- and was even angrier at the tive response ends the interBy David H.
Rosmarin
as a predoctoral psychology intern
at
McLean Hospital, I was approached by at least 10 patients asking essentially the
same question: Can I speak to
you about God? They wanted
to discuss their problems not
in psychological terms but in
spiritual ones. I guess the yarmulke on my head suggested I
was an appropriate person to
offer guidance.
I was not. I am a practicing
Orthodox Jew and a clinical
scientist, but I am no theologian. At the time, I did not
even have my supervisors’ permission to speak to patients
about their spiritual lives. I
typically responded by suggesting the patient ask his case
manager about a chaplaincy
visit, though I knew the hospital did not employ an on-site
chaplain.
It was hardly surprising
that patients wanted to speak
about God. Psychological science has consistently shown
that spirituality can shape how
someone thinks. “Religion and
spirituality have the ability to
promote or damage mental
health,” a 2014 review of research into spirituality and
mental health concluded. “This
potential demands an increased awareness of religious
matters by practitioners in the
mental health field as well as
ongoing attention in psychiatric research.” Why has this
been neglected?
ited, his classification of religious belief as “neurosis” reflected a deep antipathy
toward anything that hinted at
the metaphysical. Patients who
professed religious beliefs
were viewed as ill or immature.
Having a spiritual perspective
was considered a pathological
problem to be targeted in the
course of treatment.
In my career I haven’t encountered much explicit antipathy toward religion. Yet
Freud’s perspectives still have
lingering effects: Psychiatrists
remain the least religious of all
physicians. Clinicians tend to
disregard spirituality in the
provision of services. I was
taught in graduate school to
leave God at the threshold of
the therapy room.
The result is a chasm between practitioners and patients. In 2015, I published a
study that found 58% of patients at my hospital reported
significant interest in discussing spirituality with their clinicians. Such discussions can be
medically useful, as they help
patients to engage more in the
treatment process. Further, in
another report, belief in God
was associated with a significant reduction in depressive
symptoms during treatment.
Ignoring spirituality in
some cases feels like a form of
malpractice. Recently a patient
came to me with tears in her
eyes and described how she
felt angry at God for cursing
her with a severe mood disorder. But she also longed for
field of psychiatry for not giving her a venue to address
spiritual concerns.
Clinicians who want to discuss spirituality with their patients have another barrier to
overcome. After years of neglect, most have no training in
how to raise the subject in an
effective and culturally sensitive manner. That’s why
When I was an intern,
patients frequently
asked if they could
talk to me about God.
McLean Hospital recently created a Spirituality and Mental
Health Program, which I direct, to serve the spiritual
needs of patients. The first of
its kind in any nonsectarian
psychiatric hospital, we are
developing ways to ask patients about their spiritual
lives, training clinicians to provide spiritually integrated
care, and conducting research
on the relevance of spirituality
to mental health. We also have
a hospital chaplain now.
Addressing spirituality with
psychiatric patients does not
require detailed knowledge of
religious traditions and practices. We have developed a
simple two-question approach
that can be used with all patients, regardless of their faith
or lack thereof. We begin by
asking “Do you wish to discuss
vention; a yes triggers the second question: “How is your
spirituality relevant to your
symptoms and treatment?”
The conversation typically
takes off from there.
For many patients, their
spiritual lives provide hope,
meaning, purpose and a connection to the divine. All of
this can serve as a resource to
cope with emotional distress.
But spiritual life can also be a
struggle. Some feel unjustly
punished by God, while others
have been violated by religious
individuals. And having existential spiritual concerns can
cause or exacerbate emotional
pain.
Whether the effects of spirituality are positive or negative—or both—patient responses to this simple
assessment have been very favorable. It is not uncommon
for patients to report on hospital exit surveys that the brief
discussion about spiritual life
was the highlight of their
treatment.
I’m not sure the field of
psychiatry as a whole is ready
to evolve toward a more spiritually open ethos. But for now
I am grateful to have not only
permission to speak with patients about God, but a professional duty to do so.
Mr. Rosmarin, an assistant
professor at Harvard Medical
School, is the director of the
Spirituality and Mental Health
Program at McLean Hospital
in Belmont, Mass.
Where Wall Street Meets Broadway
By Gregg Opelka
S
omething strange began
happening on the floor of
the New York Stock Exchange in 1934. On Christmas
Eve, and then again on the last
trading day of the year, the
traders stopped carrying the
financial weight of the world
and started carrying a tune.
Even odder was the song they
crooned, a hoary little ditty
from 1905 called “Wait Till the
Sun Shines, Nellie.”
To this day, the tradition of
belting out “Nellie” for a holiday songfest continues, even if
electronic trading has caused
the ranks of the NYSE’s crooners to decrescendo to a hearty
handful. But why did the traders pick “Nellie,” an all-butforgotten tune from a pair of
obscure Tin Pan Alley songsmiths named Andrew B. Sterling and Harry von Tilzer?
In 1934 the American musical was in its electrifying early
days. Irving Berlin, Cole Porter
and the Gershwin brothers
were cranking out sophisticated, irresistible toe-tappers
seemingly by the week. Instead
Wall Street chose . . . this? As
they say in the trading business about differing opinions,
that’s what makes a market.
But the main reason for
picking “Nellie,” no doubt, was
the lyric. In the depths of the
Great Depression, it brought a
‘Wait Till the Sun
Shines, Nellie,’ sing
the stock traders.
simple promise: that someday
the storm clouds would pass
and the sun would shine again.
Did anyone care that the
song’s original point was to
cheer up a maiden who
couldn’t show off her new
gown at a picnic because of inclement weather? Hardly.
People sing primarily on
two types of occasion: when
we’re really happy or when
we’re really sad. When we’re
happy, it’s a celebration—“I
Could Have Danced All Night.”
When we’re sad, we turn to
songs of hope and sometimes
even willful self-delusion. “Put
on a Happy Face,” we tell ourselves, or “The Sun’ll Come
Out Tomorrow.”
Yet as deceptively simple as
“Nellie” may seem, the song
was revolutionary and historic
in a theatrical sense. Sterling
and von Tilzer were unwittingly paving the way for the
great American musical. They
eschewed the popular style of
antebellum minstrel songs,
with their long verses and
short refrains—think “Oh, Susannah”
or
“Camptown
Races.” Instead, Sterling and
von Tilzer wrote “Nellie” in
the 32-bar chorus form, which
would come to dominate musical theater compositions for
more than a century. It still
prevails, even in the work of
sophisticated composers like
Stephen Sondheim.
A song built within this
form has four sections, each
eight measures long. Sometimes the first and third sections are musically the same,
or similar enough, in which
case the song usually has an AB-A-B (occasionally A-B-A-C)
structure.
The other, more common,
pattern is A-A-B-A, with three
identical or similar A sections
offset by a differing B section.
Nowadays the B section is usually called the “bridge,” but in
earlier years it was known as
the “release,” since it released
the listener from the tyranny
of the repetitive A section.
Songs of this type include Irving Berlin’s “Blue Skies” and
Stephen Sondheim’s “Send In
the Clowns.”
So if you’re in the vicinity of
the New York Stock Exchange
on Friday, keep an ear open for
“Nellie.” That sound you hear
is not just music being made—
it’s history, too.
Mr. Opelka is a musical theater composer-lyricist.
BOOKSHELF | By Matthew Rees
Conspicuous
Consumption
Why You Eat What You Eat
By Rachel Herz
(Norton, 352 pages, $25.95)
The Bad Food Bible
By Aaron Carroll
(Houghton Mifflin Harcourt, 234 pages, $25)
A
bout this time each year, people discover that they’ve
packed on a few pounds after holiday-season gluttony—or realize that the whole year has been gluttonous and that they are not quite the svelte person they’d like
to be. Indeed, nearly 40% of American adults are obese, up
from just 10% in 1980. One reason for this trend is not hard
to see: People eat too much unhealthy food. So why is it
that we gorge on bacon but not broccoli? And what can be
done about it?
Some answers may be found in “Why You Eat What
You Eat,” by Rachel Herz, who teaches at Brown University and Boston College. Drawing on an array of studies,
and her background as a neuroscientist, Ms. Herz sets out
to examine how “our senses, mind, and environment are
woven into our experience of eating.” Food consumption,
she emphasizes, is
part of a social matrix
and is affected by all
sorts of cues, not all of
them conscious.
People eat less, Ms.
Herz says, if their food is
served cut up and spread
across a plate. People also
eat less when they’re
served food on a red plate
than on a white or blue one.
(Red is a “signal for peril,”
and its mere presence leads to
more vigilance.) Round food is perceived as sweeter, and bright lights
make people eat faster. A monotonous diet may well discourage consumption, though at the cost of inducing boredom. Conversely, “when we have the option for variety we
will eat more.”
Obviously willpower plays a role. Ms. Herz cites a study
showing that, when humans are expending considerable
mental energy on certain tasks (such as work), they are less
likely to show discipline in other areas (such as food). “Our
mental and psychological state,” she writes, “can be
thought of as a fixed-capacity system with only enough
energy to tackle a certain number of problems at once.”
People also seem to be less careful about what they eat
when they trick themselves into believing that, at some
future point, they will revert to healthy food and thus cancel out an indulgence. The participants in two studies that
she describes “believed that they could make up for their
less virtuous decision in the moment by making a more virtuous choice in the future. But they didn’t.” It is better, she
notes, to be “mindful and in the moment” when you eat.
You can “lessen the letdown” of consuming, say, carrots (or
broccoli) by “concentrating on what you are eating now.”
We are less careful about what we eat when we
trick ourselves into believing that, in the future,
we’ll revert to eating healthy food. We won’t.
There are limits to the value of social-science
experiments, of course, since for every study reaching one
conclusion there is often another showing just the opposite.
But “Why You Eat What You Eat,” by drawing on such
experiments, aims to be more suggestive than definitive
and seeks to (as they say) raise awareness more than offer
particular advice. Even so, buying red plates seems like a
good way to start the new year.
In “The Bad Food Bible,” Aaron Carroll has a very
different message. A professor of pediatrics at Indiana
University’s School of Medicine, Dr. Carroll argues that it is
important to “feel free to enjoy almost any food, even the
most ‘sinful,’ without worrying that it will negatively
impact your health.” Throughout the book, he mostly cites
comprehensive clinical studies, though he concedes that
“nutritional science itself is often fundamentally flawed.”
Thus Dr. Carroll questions the whole category of “bad
food,” claiming that “more important than what you’re eating is how you’re eating it—especially how often and how
much.” And don’t think to question his conclusions: “Anyone who tells you different is likely relying on wrong or
incomplete information.”
Dr. Carroll has no problem with eggs or red meat. He
says that he eats a cheeseburger about once a week. He’s
not worried about salt, saying that many people don’t get
enough of it, which brings its own set of health risks. He’s
also fine with coffee, alcohol, diet soda and artificial
sweeteners. “Practically none of the food you find in a
supermarket will kill you unless it’s gone bad or you eat
way too much of it,” he writes. He concedes the value of
avoiding processed foods and trans fats but glosses over
the obesity epidemic. It feels like a rather cavalier approach
to food consumption at a time when poor nutrition habits
have created something close to a public-health crisis.
More helpfully, “The Bad Food Bible” knocks down a
number of nutrition myths. Dr. Carroll notes that there is
no good evidence that genetically modified foods are
dangerous; and he doesn’t find any evidence that organic
foods are healthier than non-organic ones. He sees few
health benefits from milk, despite the claims made for it.
He closes the book with nine common-sense rules for
healthy eating, which include eating with people we care
about. That sounds like a good idea, though Ms. Herz notes
that we tend to eat more when we eat with a group of
friends (and less when we are trying to impress someone).
Our choices about food consumption are clearly driven by
conflicting impulses. Even the most demanding resolutions
for the coming year, however admirable and well-intentioned,
are unlikely to make those choices any simpler.
Mr. Rees is president of Geonomica, a speechwriting firm
in McLean, Va., and a senior fellow at Dartmouth’s Tuck
School of Business.
Coming in BOOKS this weekend
Teddy Roosevelt and J.P. Morgan • A modern history of
Iran • The secret lives of colors • Anesthesia and the
mystery of consciousness • Sam Sacks on the fiction that
defined 2017 • Evgeny Kissin looks back • & much more
.
THE WALL STREET JOURNAL.
A12 | Friday, December 29, 2017
OPINION
T
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Trump and Syria After Islamic State
Businesses Shouldn’t Act Like Philanthropies
he upper house of the Russian Parlia- areas. That may take years, but it’s worth the
ment this week approved a 49-year ex- effort to prevent Tehran from achieving its goal
tension on its naval base in the Syrian of a land bridge from Tehran through Iraq and
port of Tartus, another sign of
Syria to the Mediterranean.
Will the U.S. concede
Vladimir Putin’s strategic
Another marker will be
gains from his intervention in
how
the Trump team handles
a strategic victory
Syria’s civil war. As the last Isthe issue of the Syrian Kurds,
to Russia and Iran?
lamic State strongholds are
known as the YPG. The group
defeated in Syria, the big
has links with the Kurdistan
question is whether the U.S.
Workers’ Party, or PKK, which
will cede the advantage to Russia and Iran and is a U.S.-designated terror group. The White
their client Bashar Assad.
House armed YPG fighters in May to help with
The State Department confirmed recently the siege of Raqqa and announced in November
that Islamic State has lost 95% of the territory that this aid would soon cease. If the White
it once controlled in Iraq and Syria, and the flow House doesn’t handle diplomacy with the Syrof foreign fighters into Syria is slowing. That’s ian Kurds carefully, they could cut a deal with
the good news.
Assad for some form of regional autonomy,
The bad news is that Mr. Assad remains in which might provoke the Turks, who want to
power, despite nearly seven years of civil war prevent a Kurdish state, into an intervention in
and two U.S. Presidents and successive Secre- northern Syria.
taries of State who have called for his ouster.
Russia and Iran are trying to project an imThe Syrian dictator’s predations have killed age that they’ve already won the civil war and
more than 400,000 civilians and displaced mil- lure the White House into a peace deal on their
lions, and he’s still torturing, starving and mur- terms. That’s why Mr. Putin hosted a summit
dering his enemies. The regime has spent most in Sochi last month with Iranian President Hasof this month shelling Eastern Ghouta, a rebel- san Rouhani and Turkish President Recep
held Damascus suburb, despite a proclaimed Tayyip Ergodan.
Russia-brokered cease-fire.
The Russian has scheduled another peace
The Trump Administration hasn’t challenged summit for late January with the same counAssad or Russian and Iranian-backed forces di- tries, but the Syrian opposition to Assad is rerectly in offensive operations. Instead, the U.S. fusing to attend. Secretary of State Rex Tillerhas tried to re-establish limited deterrence to son told a Washington audience last month that
prevent those forces from pushing into areas the Administration is “working together with
controlled by the Syrian Democratic Forces Russia on how to prevent the civil war from re(SDF) that oppose Assad. President Trump blew erupting.”
up a Syrian airfield after a chemical weapons
But the civil war has never gone away.
attack in April, and the U.S. military has downed Assad’s forces are also having trouble holding
a Syrian aircraft that made incursions into SDF territory they win militarily. He recently pulled
areas. That’s fine as far as it goes but it won’t a unit out of an area near Mayadeen and sent
change the balance of power in Syria.
those troops to Idlib and Hama. Islamic State
Mr. Trump committed in October to roll back units quickly returned to local villages. The U.S.
Iran’s influence in the Middle East, calling Teh- does not want an Islamic State 2.0 to form in
ran a “fanatical regime.” What he does in Syria Syria as the only Sunni alternative to Assad’s
will show if those words were meaningful, or Alawite minority.
rhetoric to mask a continuing U.S. retreat from
A key U.S. goal in Syria should be to deny
the Middle East as tensions rise between Iran Assad, Russia and Iran the strategic victory of
and the Sunni Gulf states.
controlling all of Syria. Only when Russia and
One early sign will be what the White House Iran conclude that they can’t win militarily, or
decides to do with the SDF-controlled regions, that the price of winning is too high, will they
which are now protected by U.S. and allied air negotiate a genuine peace deal that allows for
power, similar to how the George H.W. Bush and self-governing ethnic enclaves in Syria. The
Clinton Administration protected the Kurds of means to that end is supporting Syrian and
northern Iraq in the 1990s. Our sources say Kurdish forces that oppose Assad and Islamic
these safe zones could be maintained long radicals. The alternative is a U.S. retreat that
enough to rebuild civil institutions and to train would allow an Islamic State comeback and pera force strong enough to challenge Assad-held haps a larger war in the Middle East.
A
Andrew Cuomo’s Tax Lament
ndrew Cuomo must be getting nervous. added to the Constitution in 1913. Mr. Cuomo
The Democratic Governor is worried is upset that the feds have now limited the fedenough about federal tax reform’s im- eral deduction for state and local taxes to
pact on New York that he says
$10,000, but there’s nothing in
Sorry, Governor, the
the new law may be “unconthe Constitution that says
stitutional” and his state may
Congress can’t do that.
‘double
taxation’
in
have to “restructure” its tax
Congress isn’t forcing New
New York is yours.
code. One out of two isn’t bad
York to do anything, and the
for Mr. Cuomo.
deduction cap is imposed
“We’re going to propose a
equally on all 50 states. If New
restructuring of our tax code. I’m not even sure York taxpayers are hurt by the new law, the reawhat they [Republicans] did is legally constitu- son is because the Empire State taxes them too
tional and that’s something we’re looking at much. Nothing is stopping Mr. Cuomo from
now,” he told CNN on Thursday. “You can proposing to fix the New York code so it drives
change the tax code. You can’t penalize my fewer rich people out of the state.
state because of its political affiliation. There’s
If Mr. Cuomo is serious about tax “restrucnever been a double taxation before in the his- turing,” he might remember his frequent line
tory of the nation.”
from his 2010 campaign when he opposed exSure there has. States and localities are al- tending an income-tax surtax and liked to say,
lowed to impose their own income taxes, and “New York has no future as the tax capital of
so can the feds since the 16th Amendment was the nation.”
A
Birds of Regulatory Prey
nimal spirits revived this year after the fensive contracting, which has driven up costs
Trump Administration halted its pre- on construction projects. Utilities, telecom
decessor’s regulatory predations. Con- companies and local governments have delayed
sider the Interior Departprojects to avoid harming
Interior reverses an
ment’s legal memo last week
bird nests and potentially rufthat rescinds an Obama Adthe feathers of wildlife
Obama rule punishing fling
ministration policy of crimiregulators.
accidental bird killings.
nalizing citizens who accidenWhile some companies
tally kill migratory birds.
have coughed up millions to
The Migratory Bird Treaty
settle the government’s
Act of 1918 makes it a federal crime to “pursue, charges, Citgo Petroleum challenged its dubihunt, take, capture or kill” migratory birds. Of- ous legal theory that businesses could be held
fenders can be punished with up to six months criminally liable for incidental bird deaths—
in prison and fined $15,000 per violation. The three dozen birds had flown into its oil tanks—
law was originally intended to protect birds and was exonerated by the Fifth Circuit Court
migrating between Canada, Mexico, Japan, of Appeals in 2015.
Russia and the U.S. from poachers who sold
After examining the law’s text, origin and
their feathers for a profit.
other statutes, the Fifth Circuit “agree[d]
Over the last 100 years, the list of pro- with the Eighth and Ninth circuits that a ‘taktected birds has grown to more than a thou- ing’ is limited to deliberate acts done directly
sand species including crows, ducks and and intentionally to migratory birds.” The
finches. President Obama added nearly 200 Fifth Circuit also noted that the “scope of liabird species to the list while calling open sea- bility under the government’s preferred interson on energy companies whose activities “in- pretation is hard to overstate,” and “would
cidentally” harm birds. In 2011 federal prosec- enable the government to prosecute at will
tors charged seven oil companies in North and even capriciously (but for the minimal
Dakota after more than two dozen birds flew protection of prosecutorial discretion) for
into their tar pits.
harsh penalties.”
An equal opportunity business harasser, the
The Obama Administration nonetheless isObama Administration targeted wind farms op- sued a legal opinion during its final two weeks
erated by Duke Energy and PacifiCorp Energy concluding that the Migratory Bird Treaty Act
that were found to have maimed hundreds of broadly prohibits incidental takings. Interior’s
birds. Individuals also wound up in the govern- new directive reverses the Obama guidance,
ment’s crosshairs—for instance, a tree-trimmer concluding that the government can “only
in Oakland was investigated by the U.S. Fish and criminalize affirmative actions that have as
Wildlife Service in 2014 after accidentally injur- their purpose the taking or killing of migratory
ing five black-crowned night herons.
birds, their nests, or their eggs.”
There’s no limiting principle to the governIt adds that “to apply [the law] to incidental
ment’s prosecutorial discretion. Homeowners or accidental actions hangs the sword of Damoand drivers could be prosecuted if birds fly into cles over a host of otherwise lawful and protheir windows. Legal risks have increased de- ductive actions.” Amen.
Peggy Noonan, in her Dec. 23 column, “This Tax Bill May Do Some
Good,” slips off the rails of free-enterprise thinking when she implores
business leaders to “see private interest as utterly aligned right now
with public interest.” If they do
not, “then they are as truly stupid
and venal as their enemies take
them to be.”
I hope business leaders are strictly
aligned not with Ms. Noonan but
with Milton Friedman, that paragon
of free enterprise. He once cautioned:
“There is one and only one social responsibility of business—to use its
resources and engage in activities designed to increase its profits so long
as it stays within the rules of the
game, which is to say, engages in
open and free competition without
deception or fraud.”
Business leaders who make economic investments commensurate
with risk and who operate safely and
responsibly indeed do act in the public interest. The benefit to the public
is an outcome—not a driver—of
those business decisions.
BILL ALLMAN
Newport Beach, Calif.
Ms. Noonan’s hope that the CEOs
of the world should act as patriots
first and business people second in
response to the tax bill is misguided.
As Adam Smith writes, these CEOs
should focus not of the collective
good, but on maximizing profit for
shareholders. When we are all laser
focused on our own economic self interest, the “invisible hand” guides us
toward collective prosperity. In this
way, to quote Gordon Gecko, “greed
is good.”
Ms. Noonan implies that a benevolent group of leaders must act in our
collective interest for us to prosper
and fend off the advancing tide of socialism on the Left. Why does her
remedy to socialism sound a lot like
socialism?
JEREMY ZEICHNER
Bloomington, Ind.
Mr. Trump’s success is in his ac-
tions and policies, not in his communication skills. Barack Obama’s
skill sets were in his “presidential”
polished optics and oratory, but he
delivered abysmal economic, social
and international policies. I’ll take
brute honesty over phony, empty
and often dishonest “progressive”
failure any day.
E.E. STOYKO
Phippsburg, Maine
The tax bill was a hard fought win
for the American people. It was a win
over lock-step opposition from the
left and much of the press. Ms. Noonan and others of the D.C. establishment seem out of touch and misunderstand the joy of this victory and
the praise of the leadership that
achieved it.
DAVID YATES
Manhattan Beach, Calif.
I deeply admire President Trump
but agree that humility might be an
option that he should consider more
often. If he works together with Republicans and possibly even Democrats in 2018, the amount of future
praise for him and his presidency
might surprise us all.
NICK SPEAR
Phoenix, Ariz.
I watched the celebration about
the tax plan and did not find it embarrassing at all. It was a victory lap,
but in the present nature of Washington politics, it clearly was warranted. After about 35 years it is
time for some relief for the American
taxpayer.
FRANK THOMAS III
Ballwin, Mo.
Ms. Noonan keenly highlights the
looming risks from the left’s fire for
socialism that I am not so sure voters, especially younger ones, understand. Sadly, capitalism does need to
be defended. I am cautiously optimistic that business leaders do the
right thing.
ANTHONY J. RUBINICH
Fairfield, N.J.
Losing a Spouse and Marital Status Hurts
I would like to second the feelings Pamela Jane Bell expressed in
her Dec. 18 op-ed “My Husband
Died, But I’m No Widow.” I’m a widower myself, but I don’t feel like
one. Although my wife died five
years ago, I don’t feel alone. She
had become such an integral part of
my being in life that even death
can’t sever our bond.
In fact, whenever she appears in
my dreams, I look at my wife’s picture
on her bookcase the next morning
and thank her for visiting me. My
wife didn’t want me to be alone after
her passing; and if I were to meet another woman with whom to share my
life, that would be fine. But if not, I’ll
live the rest of my days feeling the
warmth my wife always gave me. And
if there is an afterlife, we’ll be together again.
RICHARD REAY
Riverdale, N.Y.
I sympathize completely with Ms.
Bell’s sentiments. Shortly after the
death of my wife, my bank tele-
phoned to say that her name was being removed from all accounts. I
curtly responded by threatening to
close all my accounts if the bank did
that. The only reason I was still a
customer with that bank was precisely because my wife’s name still
appeared with mine on checks. It’s
been 10 years and her name is still
there.
JOSEPH RUSSO
Sebastian, Fla.
As a “formerly married” person, I
empathize with her desire not to
wear a permanent label based on a
relationship that no longer exists. On
job applications, choices for marital
status usually include divorced as
well as single or married. I always
check the box for single. When questioned about this, I explain that divorce is a process not a condition. I
was married, then I got divorced, and
now I’m single. The same rationale
should apply to the status of widow.
JOHN E. STAFFORD
Rye, N.Y.
Kim Phuc’s Story of Surviving Napalm Is a Gift
I was 11 years old when I saw a
picture, in Life Magazine, of a frightened little girl running naked down a
road in South Vietnam. Like many
American youth, I watched the Vietnam War on television in the comfort of my living room. I always wondered what had happened to that
little girl. Was she killed? Did she
survive the war? Where were her
parents? Why was she running
alone? Kim Phuc Phan Thi’s Dec. 21
op-ed “The Salvation of ‘Napalm
Girl’” answered many of my questions. I had never known that she
survived; that she was a victim of
friendly fire; that she was living in
Canada. The nicest gift that I received this Christmas was the joy of
knowing that that little frightened
girl had become a true disciple of
Jesus Christ and that her steadfast
hope and faith had healed her heart.
JON C. JACOBSON
San Diego
knowing somehow that God was
there.
However, I have held constant anger and been unforgiving for powerhungry politicians and obsequious
military leaders as well as the North
Vietnamese and Viet Cong. After being in Vietnam, I have been a cynic
about government and find it difficult to trust politicians, knowing
that for their gain in this life, they
are willing with false tears and fake
mournfulness to send others to
death and injury and lives of despair.
But Ms. Phuc has released me to forgive. I’ll be forever grateful and keep
her in my prayers.
RONALD FERRILL
Simpsonville, S.C.
Pepper ...
And Salt
THE WALL STREET JOURNAL
“The Salvation of ‘Napalm Girl’,”
brought me to a new forgiveness. I
was there in ’67-’68. I was there for
the Tet Offensive and other incidents
that brought me closer to Christ Jesus. One defining point was when I
volunteered to visit children in a
Catholic orphanage in DaNang city.
Seeing those children go from fear
to smiles was seeing Jesus and
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.
“Sure, it will be an eyesore, but build
a lot of them and it’ll fit right in.”
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | A13
OPINION
By Ruchir Sharma
A
s Donald Trump and other
populists sent TV viewership and news readership
soaring this year, commentators cast these newage leaders as a threat to world
peace, democracy, Western civilization, the postwar order, race relations, women, the free press, the
open internet and more.
Amid calls to resist, some people
chose a different path, a retreat into
“internal exile”—that is, they tuned
out politics. The notion of internal
exile has a long history, from 19thcentury France to Nazi Germany and
Soviet Russia, where many people
In the face of crisis, Polish
and Korean stocks soared
more than 40%—even
faster than in the U.S.
ignored the rise of political strongmen to the extent possible, minimized them with black humor, or
turned inward to focus on family,
business, the arts—anything but a
brash new political elite claiming to
speak for the people.
This November polls showed most
Americans dreaded the thought of
political conversation at Thanksgiving dinner. Some banned any mention of Mr. Trump or left the festivities early. Avoiding politics kept the
family peace. It also would have
been a winning market strategy for
this president’s first year.
Twenty-seventeen has been a
blockbuster year for investment gains
world-wide, and the best returns
came in countries where the political
risk from populism and war was seen
as especially high. Exhibits 1 and 2:
Poland, threatened by right-wing nationalism, and South Korea, threatened by nuclear brinkmanship. Along
with China, these were the three hottest stock markets of 2017, all up
more than 40% in dollar terms.
Energized by the broad global recovery, and by ready access to easy
money thanks to record low interest
rates, smart investors looked past
the alleged political risks to focus on
strong global growth, the accelerating tech revolution and the rise of
new middle-class consumers.
In the U.S., the early 2017 chatter
was all about the “Trump trade.”
Many investors thought his plans to
cut taxes, deregulate, increase infrastructure spending and impose new
trade barriers would shape market
behavior, for better and worse. But
the U.S. stock market’s rally this
year was driven to an unprecedented
degree by the tech industry, in particular by undiluted optimism about
the future of big companies like Amazon and Facebook.
Some liberals predicted Mr.
Trump’s erratic leadership would destabilize the world and send markets
crashing. Instead 2017 ended up being one of the calmest years in the
U.S. stock market’s history, with the
S&P 500 currently in its longest spell
without even a 3% correction. During
the year, stock prices responded less
to strictly political factors such as
the president’s low approval ratings
and more to traditional economics
like accelerating growth.
Rising
economic
optimism
CHAD CROWE
In 2017, Markets Rose Above Politics
drowned out politics in other big
markets too. “Chairman of Everything” Xi Jinping’s increasingly broad
grip on political power in Beijing
seemed to make nonsense of dreams
for capitalist democracy in China. But
the markets, often leery of unchecked
strongmen, saw no issue.
Instead, they zeroed in on how
Chinese internet companies are expanding rapidly into one-stop shops
for everything from shopping to
banking. Some large Chinese tech
stocks doubled in value—the main
reason global investors made far
more money in China than in the U.S.
in 2017. Even in Beijing, top officials
admitted to being in awe of internet
giants like Alibaba and Tencent. One
Chinese regulator recently told an
American CEO that whereas 18
months ago these companies were
“too small to worry about, now they
are too big to do anything about.”
In India, Prime Minister Narendra
Modi’s growing power spooked liberals, who saw him as a threat to democracy, and pleased conservatives
who saw him as a crusader against
corrupt middlemen. But both groups
overstated his economic impact. The
Indian stock market rose 30%, powered by the same driver that has propelled India for decades—the unceasing rise of a large consumer class.
Nowhere did politics fizzle as a
threat more strikingly than in Europe.
Forecasters thought the rise of flamboyant nationalists in France, Germany and the Netherlands could
threaten the existence of the European
Union. Instead, as the populists faded
in key elections, the global recovery
spread to Europe, and stock markets
posted strong double-digit gains in all
major European countries.
The gap between fear of strongmen and their influence on markets
was even sharper in Poland, where
the Law and Justice Party spent
heavily on populist giveaways while
corralling the courts and press—
moves widely seen as bad for the
economy. Yet Poland continued to
rise as an export manufacturing center, and stocks rose strongly in response.
Perhaps even more surprising was
South Korea, where the strongman
threat came from North Korea. As
Kim Jong Un ramped up missile tests
and claimed to have put the entire
American mainland within range, nuclear jitters barely ruffled the market in Seoul. Long accustomed to
bloodcurdling threats from the
North, South Korean investors focused on the upward trajectory of
the country’s tech firms.
Politics often does matter to markets, but it is only one of many influences, and it proved inconsequential
this year. In some countries politics
was dwarfed by economic factors
like rising growth. In others populists proved so polarizing that the
backlash ensured they would not get
much done.
No doubt committed members of
the antipopulist resistance will question the morality of internal exile. If
you are not with them, you are evil.
But 2017 demonstrates the potential
upside of ignoring politics in rabidly
partisan times. It’s a way to keep
your equanimity and can preserve
and grow your savings.
Mr. Sharma, the chief global
strategist at Morgan Stanley Investment Management, is the author of
“The Rise and Fall of Nations: Forces
of Change in the Post-Crisis World”
(Norton, 2016).
Bangladesh Exports a New Generation of Jihadists
Americans
don’t
hear much about
Bangladeshi terrorists. The vast majority of high-profile
terrorist plots targeting the U.S.—sucEAST IS
cessful or unsucEAST
cessful—have turned
By Sadanand
up protagonists with
Dhume
links to familiar
trouble spots: the
Arab world, Afghanistan and Pakistan, Russia’s autonomous Chechen
Republic.
But earlier this month, Akayed Ullah, a 27-year-old immigrant from
Bangladesh, allegedly tried to blow
himself up in a crowded New York
subway tunnel using a crude bomb
assembled from match heads and a
piece of pipe. The bomb failed to
detonate properly, and Mr. Ullah
ended up seriously injuring only
himself before he was overpowered
and arrested.
Nonetheless he represents a troubling new phenomenon: the rise of
the transnational Bangladeshi jihadist. Mr. Ullah told interrogators the
botched bombing was on behalf of Islamic State and his goal was “to terrorize as many people as possible.”
Also this month, authorities in
London charged 20-year-old British-
Bangladeshi Naa’imur Zakariya Rahman with planning to assassinate
Prime Minister Theresa May by
blowing up the gates of 10 Downing
Street and attacking Mrs. May with
a suicide vest and a knife.
The July 2016 Islamic State attack
on the Holey Artisan Bakery, an upscale restaurant favored by expatriates in Bangladesh’s capital, Dhaka,
involved a global cast of characters.
They included Tamim Chowdhury, a
chemistry graduate from Ontario
whose parents emigrated from Bangladesh to Canada, and Muhammad
Saifullah Ozaki, a Bangladeshi Hindu
convert to Islam who taught business administration in Kyoto, Japan.
The five Holey Bakery attackers
hacked and shot to death 20 hostages over 11 hours. Nine of the victims were Italian, seven Japanese,
two Bangladeshi, one Indian and one
American. The attackers were later
killed when security forces stormed
the bakery.
Chowdhury, the Bangladeshi-Canadian mastermind, was fatally shot
by security forces two months after
the attack. Mr. Ozaki, who investigators believe acted as a conduit between the attackers and the Islamic
State in Syria, remains at large.
Earlier Bangladeshi jihadists were
usually poorly educated recruits
from traditional Islamic schools.
Most of the Holey Bakery attackers,
by contrast, came from privileged
backgrounds. They belonged to a
new generation of Bangladeshi terrorists described by Ali Riaz, a political scientist at Illinois State University, as “tech-savvy, highly educated,
and boasting deeper transnational
links than their predecessors.”
A botched New York
bombing was only the
latest in a series of attacks
from Dhaka to London.
Some Bangladeshis blame their jihadist problem on Western laxness
toward Islamic extremism. Chowdhury, for instance, consorted with
other jihadists, including a close-knit
group known as the Calgary cluster,
whose members prayed at the same
storefront mosque and left Canada
to fight in Syria. “Londonistan,” as
Britain’s Islamist-friendly capital has
come to be known, has long provided extremists access to global
networks, exposure to hard-line
preachers, and a patina of Western
glamour.
Mr. Riaz estimates that as many
as 100 of the 850 or so British fighters who joined Islamic State in Syria
and Iraq may be of Bangladeshi origin. They include Saiful Haque Sujan, who came to Britain as a student and was killed two years ago
by a U.S. drone strike in Raqqa,
where he helped lead the terrorist
group’s cyber operations.
To be sure, Western countries
could do a better job tackling extremism. But it’s far-fetched to place
Bangladesh’s jihadist problem at the
feet of foreigners. The country has
hardly been immune to a tide of radicalism that over the past four decades has washed over Muslim communities
from
Morocco
to
Mindanao.
By allying with Islamist groups
like Jamaat-e-Islami, political parties such as the opposition Bangladesh Nationalist Party have given
them a legitimacy they once lacked.
Since 2013, a series of machete murders of atheist and secularist bloggers has chilled free speech. Instead
of standing up for the victims, Prime
Minister Sheikh Hasina, whose party,
the Awami League, is ostensibly secular, has suggested that people tread
carefully when speaking about Islam.
The Islamist promise of solving
all of society’s problems by impos-
ing Shariah does not resonate as
deeply with Bangladeshis as with
their Pakistani cousins. (Bangladesh was known as East Pakistan
before independence in 1971.) But
neither does it fall entirely on deaf
ears. As in many countries, some
Islamists use violence to pursue
these goals.
In many ways the challenge is familiar. How do you draw a line between legitimate piety and its most
extreme manifestations? One day
your 18-year-old son may please you
by taking a religious turn. The next
thing you know, he could be on front
pages around the world for hacking
strangers to death.
For most of us, unpacking the
precise relationship between piety
and pipe bombs may be an unaffordable luxury. Siegfried Wolf, an expert on Bangladeshi militancy at the
Brussels-based think tank South Asia
Democratic Forum, points out that
in recent years Bangladeshi jihadists
have begun to show a new assertiveness and self-confidence.
Mr. Ullah is the first Bangladeshi
to have placed his country on America’s mental map of jihad since a
compatriot tried unsuccessfully to
blow up the Federal Reserve Bank in
New York five years ago. He likely
won’t be the last.
‘I Wish You Bad Luck,’ He Said With Good Intentions
By Bob Greene
‘I
wish you bad luck,” said the
chief justice of the United
States.
He meant for those words, delivered last spring, to express encouragement and optimism.
The year now ending has been
filled with a ceaseless cascade of
ugly, angry verbiage aimed in every
possible direction.
Yet as 2017 concludes and men
and women make hopeful resolutions
for 2018, at least one set of words
this year offered a universal lesson
about the value to be found in generosity of spirit. It came from Chief
Justice John Roberts. It wasn’t a Supreme Court ruling or a dissenting
opinion, but a quiet message that,
amid the cacophony of each day’s
seemingly urgent news, deserves to
endure.
The chief justice had been invited
to present the commencement address at his son’s ninth-grade graduation. The ceremony was, by design,
modestly attended.
He told his audience that commencement speakers will typically
“wish you good luck and extend good
wishes to you. I will not do that, and
I’ll tell you why.
“From time to time in the years to
come, I hope you will be treated unfairly, so that you will come to know
the value of justice.
“I hope that you will suffer betrayal, because that will teach you
the importance of loyalty.
“Sorry to say, but I hope you will
be lonely from time to time so that
you don’t take friends for granted.
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Ramin Beheshti, Product & Technology;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Christina Van Tassell, Chief Financial Officer;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
“I wish you bad luck, again, from
time to time so that you will be conscious of the role of chance in life,
and understand that your success is
not completely deserved and that the
failure of others is not completely
deserved either.
“And when you lose, as you will
from time to time, I hope every now
and then your opponent will gloat
over your failure. It is a way for you
to understand the importance of
sportsmanship.
“I hope you’ll be ignored so that
you know the importance of listening
to others, and I hope you will have
just enough pain to learn compassion.
“Whether I wish these things or
not, they’re going to happen. And
whether you benefit from them or
not will depend upon your ability to
see the message in your misfortunes.”
It is difficult to imagine that a
person who rises to the position of
chief justice of the United States has
had a lot of bad luck and betrayal in
Chief Justice John Roberts
elaborates on this spring’s
famous ninth-grade
graduation speech.
his life. But those words had to have
come from somewhere; through the
court, I asked Chief Justice Roberts if
he’d care to share the genesis of his
speech. Were these thoughts that
he’d been carrying around for a long
Notable & Quotable: Scott
Ridley Scott, director of “All the
Money in the World,” in an interview
with the Denver Post, Dec. 21:
Q: There’s a lot commentary in
this film about the value of human
life, class struggles and the role of
wealth in society. Do you think
there’s anything to be learned from it
at this moment in America?
A: Well, let’s take the tax bill. People say (Republicans) are doing it for
the wealthy class. What they forget is
if you get a clever, un-selfish business
person—I don’t care if it’s a corner
store or a big business—who’s suddenly saving 15 percent, they’ll put it
back in this business. Then you’re going to get growth and therefore (people) will get employed. My concern is
with the elderly, the infirm and the
youth who need to have chances and
shots for every level, and equality in
education. But you have to use it. You
have to get your (expletive) head
down and use it.
Q: I’m sure you benefited from
some help early on in your career.
A: I’m a natural-born hunter because that’s who I am. No one taught
me that. I started from scratch. I arrived in Hollywood with a wristwatch
and stayed at the YMCA. You have to
learn the curve. But don’t (expletive)
moan about it. It’s about doing.
There’s always a way in. I used to lay
concrete on runways for an Irish
company when I was a student. I
packed drywall. My parents didn’t
have the money to help me out. But
they were very supportive of anything I wanted to do.
time? Phrases that he had been
taught by a parent or grandparent?
He responded that he had prepared the advice specifically for that
commencement address, as he set
out to reflect upon “some of the
harsh realities that everyone will
face in the course of a full life,” and
how to anticipate them and learn
from them.
There was something else that he
proposed in the speech, something
seemingly simple that bears consideration as 2018 waits just ahead:
“Once a week, you should write a
note to someone. Not an email. A
note on a piece of paper. It will take
you exactly 10 minutes.” Then, he
urged, put the note in an envelope
and send it off the old way: via U.S.
mail.
The handwritten note, he said,
might express appreciation for someone who has helped you out or
treated you with kindness, and who
may not know how grateful you are.
If you do that once a week for, say,
10 months, “40 people will feel a little more special because you did, and
they will think you are very special
because of what you did.”
Not a bad suggestion, for any of
us. I wondered if Chief Justice Roberts manages to write those weekly
letters of thanks. He replied that he
tries to follow his own advice, “mindful that advice is one of those things
that is easier to give than receive.”
So, as the year draws to a close,
here’s a toast to bad luck, and to its
hidden gifts. First, though, the corner mailbox awaits. Gratitude is
priceless, but conveying it costs no
more than a postage stamp.
Mr. Greene is completing a new
novel, “Yesterday Came Suddenly,”
about an America with no internet.
.
THE WALL STREET JOURNAL.
A14 | Friday, December 29, 2017
WORLD NEWS
Mexico’s Army of Bodyguards Draws Scrutiny
i
i
i
The killing of a Televisa executive under armed escort spurs moves to regulate nation’s more than 170,000 private guards
A private bodyguard, foreground, stands with a client after his helicopter landed on the roof of a hotel in Mexico City in 2014.
according to Mr. Gómez. The
bodyguards couldn’t be
reached to comment.
The incident has fueled
concerns that mounting security problems are becoming a major obstacle to development and investment in
Mexico. But Mr. Lagos’s
death has also shed light on
the visible yet often-ignored
work of bodyguards.
Despised by motorists because of their aggressive
driving, they can often be
seen standing guard outside
posh restaurants or boutiques in Mexico City. Many
double as personal assistants, in breach of basic security protocols, experts say.
“Sometimes you see them
helping with grocery bags or
taking children to the disco”
and that can result in signifi-
cant distractions, said Roberto Rivera, president of
the Mexican Association of
Private Security Companies.
There are an estimated
177,000 private security
guards registered with state
and federal authorities, although officials say there are
thousands more operating in
the underground economy.
Many hire former military
officers who are legally permitted to carry weapons, authorities say. So-called complementary police units run
by state governments also
offer private security services with little supervision.
Others are poorly trained.
“It’s a very serious problem and it’s only the tip of
the iceberg,” said Luis Esteban Islas, head of planning
and private security at the
GDA/ASSOCIATED PRESS
MEXICO CITY—Adolfo Lagos loved to bike on the rural
fringes of Mexico City. Friends
say it was the MIT and Stanford trained executive’s way
of working off stress from his
job as vice president of media
giant Grupo Televisa.
In November, he was fatally shot when two assailants
tried to steal his bicycle while
he was riding with a colleague on a road north of the
capital, his two bodyguards
trailing him in their SUV.
Mr. Lagos is the most
prominent executive to fall
victim to a wave of violence
that has claimed more than
26,000 lives this year. The
killing was shocking in a
country where homicides are
on track to reach a record
this year but the wealthy, often protected by armored
cars and bodyguards, are
usually immune.
The case took a further
twist when investigators in
the State of Mexico, where the
incident occurred, said they
believed 69-year-old Mr. Lagos was accidentally shot by
his own guards trying to protect him from the assailants.
Mr. Lagos was caught in
the crossfire between the attackers and the bodyguards,
who fired their 9mm weapons from the armored SUV
some yards away, Alejandro
Gómez, the state’s chief
prosecutor, told local radio.
A suspect in the robbery
was detained last week and
has been charged with attempted homicide and theft.
A warrant has been issued for
the arrest of another suspect.
Mr. Lagos’s bodyguards,
whose identities haven’t been
publicly disclosed, are cooperating with the investigation,
DARIO LOPEZ-MILLS/ASSOCIATED PRESS
BY SANTIAGO PÉREZ
Adolfo Lagos was killed while
biking outside the capital.
government’s National Security Commission. He is seeking to update federal verification and training standards
for bodyguards, including
first aid skills, weapons handling, driving techniques and
Mugabe Retires With Rich Perks
Former Athlete Wins
Election in Liberia
BY GABRIELE STEINHAUSER
BY NICHOLAS BARIYO
Former global soccer star
George Weah was declared the
winner of Liberia’s long-delayed presidential election on
Thursday, completing the
West African nation’s first
democratic transfer of power
in more than seven decades.
With 98% of the ballots tallied, Mr. Weah—the only African to be crowned FIFA’s
World Player of the Year, in
1995—had won 61.5% of the
vote, far ahead of Vice President Joseph Boakai’s 38.5%,
said Jerome Korkoyah, chairman of Liberia’s National Election Commission.
The preliminary result
clears the way for the 51-yearold Mr. Weah to succeed Ellen
Johnson Sirleaf, Africa’s first
woman elected president, at
WILFRED KAJESE/AGENCE FRANCE-PRESSE/GETTY IMAGES
Zimbabwe’s new leadership, with President Emmerson Mnangagwa in the center.
ernment gazette.
He will also have access to a
Mercedes Benz S500 or an
equivalent luxury sedan, a
four-wheel-drive station wagon
and a pickup truck—which
have to be replaced every five
years—and a fully furnished office.
Mr. Mugabe, who already
owns several properties including his luxurious “Blue
Roof” mansion on the outskirts of the capital, Harare, is
entitled to “a reasonably sized
house with five bedrooms, a
guest wing with three bedrooms, a study, a swimming
pool, two guard rooms and
two garages.” Should he decide not to have the government build a new residence,
he can demand the equivalent
in cash.
The government will pay
for up to four first-class private international trips a year
for Mr. Mugabe and the former first lady.
The couple, who haven’t
made any public comments
since Mr. Mugabe stepped
down on Nov. 21, are currently
in Singapore, where the former president regularly receives medical treatment. The
state will continue to pay for
his medical care as well as his
phone, water and electricity
charges.
The former president already receives a monthly pension that is equal to the president’s salary, said George
Charamba, Mr. Mnangagwa’s
spokesman, who declined to
give details on how much that
salary was.
the helm of the country
founded by freed American
slaves. Mr. Weah lost to Ms.
Johnson Sirleaf in 2005, her
first run for the presidency.
Tuesday’s runoff election
had been delayed by court
challenges of the first-round
poll, held in October, by Mr.
Boakai and the third-place finisher of that vote, who
claimed that the late opening
of polling stations, lack of control over long voter lines, disorderly voting and fraud had
marred results. Liberia’s Supreme Court dismissed the
challenges this month.
Hundreds of Liberians took
to the streets of the capital
Monrovia on Thursday evening
to celebrate Mr. Weah’s victory,
waving flags bearing his portrait. There was no comment
from Mr. Boakai’s team.
THIERRY GOUEGNON/REUTERS
The retirement package for
Zimbabwe’s former President
Robert Mugabe includes some
two-dozen permanent staff,
three new cars every five
years and a newly built eightbedroom residence or its
equivalent in cash, according
to a notice issued by the country’s new leader.
Mr. Mugabe was forced to
end his turn as the world’s
oldest head of state last
month after 37 years in power
that pushed his country to the
brink of financial collapse, but
saw his family gain vast personal wealth.
On Thursday, as Constantino Chiwenga, the military
commander who led the intervention to oust him, was
sworn in as vice president, the
price tag for Mr. Mugabe’s
resignation became public.
His successor, Emmerson
Mnangagwa, has made sure
that Mr. Mugabe and his wife,
Grace, won’t suffer. The 93year-old will be attended to by
at least 25 staff—including a
minimum of six security
guards, two private secretaries, two cooks and two people
in charge of doing his laundry,
according to the notice, which
sets out the retirement benefits for presidents and was
published in Zimbabwe’s gov-
crisis management.
The Irish rock band U2 refused to play in Mexico for almost a decade after bodyguards for the sons of thenPresident Ernesto Zedillo
seriously injured the band’s
head of security when his
team refused to let the sons
go backstage in the late 1990s.
Two traffic incidents infuriated the public in 2016 after
videos recorded by bystanders went viral. The protagonists were dubbed “Lord Ferrari” and “Lord Rolls-Royce,”
referring to the owners of the
vehicles whose bodyguards
jumped out of their escort
cars to assault motorists and
clear lanes for their bosses.
“Unfortunately, we don’t
have a good reputation in
Mexico,” said Ivan Ivanovich,
a veteran secret service officer
from former Yugoslavia who
runs security firm AGS Group
in Mexico City. “Most bodyguards act in a completely reactive manner and tend to
solve problems with their
weapons. That makes you an
enemy of prevention.”
In Mexico’s capital, authorities set up checkpoints to
crack down on bodyguards after establishing stricter rules
for security contractors last
year. They have detained 91
unlicensed bodyguards and
seized close to 100 weapons.
“The lack of control and
regulations for bodyguards
sparked social exasperation
because of driving incidents
or fights outside restaurants
and even high schools,” said
Hiram Almeida, Mexico
City’s police chief. “That’s
why we determined that it
was time to regulate them.”
Colleagues said Mr. Lagos
shunned escort vehicles and
preferred to have more discreet armed drivers. He had
a longstanding relationship
with his bodyguards.
A Televisa official said the
bodyguards weren’t contracted by the company. The
salary of at least one was
paid by the Mexican unit of
Spain’s Banco Santander to
an undisclosed contractor, as
part of Mr. Lagos’s retirement package when he left
the bank in 2013 to join Televisa. The bank declined to
provide additional details.
Although they could face
manslaughter charges once
the investigation is concluded, forensic evidence
and testimony showed the
guards tried to defend their
boss and that there was no
intention to kill Mr. Lagos,
Mr. Gómez said. The main
reason for his death, he said,
was “lack of expertise.”
Supporters of George Weah celebrate his victory in Monrovia.
RUSSIA
Putin Calls Bombing
An Act of Terror
A bomb blast at a St. Petersburg grocery store was an act of
terrorism, Russian President
Vladimir Putin said Thursday, as
he ordered law-enforcement officials to act decisively to stop
further attacks.
The bomb injured 13 people,
six of whom were still in the
hospital, the city’s Vice Governor
Anna Mityanina said on Twitter.
Security officials said they are
looking for the bomber. No one
has claimed responsibility.
Mr. Putin offered no other details on the bombing or his
claim.
Security officials determined
the bomb, which detonated
shortly before 7 p.m. on
Wednesday in a shopping-center
supermarket, was a handmade
explosive device.
State television identified the
bomber on security-camera footage as a man with a green
hooded sweatshirt and gray
backpack who later rushed out
of the store.
Mr. Putin, who is seeking a
fourth term as president in elections next year, has based his
rule in Russia partly on his
tough stance against terrorism.
He has justified Russia’s intervention in Syria as a measure
needed to prevent Russian citizens who had fought for Islamic
State from returning.
“What would be if these
thousands [of terrorists]...came
back to us in the hundreds
trained, armed and well-prepared?” he said during the
Kremlin ceremony.
Russian security officials say
they have already stopped several terrorist attacks this year.
—Thomas Grove
HEINO KALIS/REUTERS
WORLD WATCH
EGG ON THEIR FACES: Revelers battle with flour and eggs during
the Els Enfarinats festival in Ibi, in Spain’s Alicante province.
MEXICO
Central Bank Is Wary
On Rising Inflation
Mexico’s rising inflation rate
and prospects that it will take
longer to get back on target
than initially expected dominated discussions at the Bank of
Mexico’s Dec. 14 meeting in
which all members agreed to
raise interest rates, minutes to
the meeting showed Thursday.
The Bank of Mexico, under
the leadership of Alejandro Díaz
de León who succeeded Agustín
Carstens as governor on Dec. 1,
still expects inflation to slow
significantly in 2018, but has
dropped its expectation of hitting the target by the end of
next year.
Central bankers were wary of
the impact higher interest rates
could have on economic growth,
which has been slowing in 2017.
Further depreciation of the
peso could add fuel to inflation,
members agreed.
Risks for the currency include
a negative outcome in talks with
the U.S. and Canada to rewrite
the North American Free Trade
Agreement, future interest-rate
increases by the U.S. Federal Reserve, and market jitters surrounding Mexico’s presidential
election which is scheduled for
July.
—Anthony Harrup
UNITED KINGDOM
Security Increased
For Holiday in London
London plans to beef up its
police presence and closed down
some roads for New Year’s Eve
after a year marked by repeated
extremist attacks.
The Metropolitan Police said
Thursday that there is no specific threat to the city’s celebration, which is focused on a fireworks display over the River
Thames, but that the public
should be vigilant.
Overt and covert protection
methods will be used and revelers should expect to see armed
police and vehicle barriers, Superintendent Nick Aldworth said.
There will be many checkpoints
in place. Police say tickets for
London’s fireworks display have
all been sold out.
—Associated Press
.
TECHNOLOGY: DUBAI TYCOON TAKES AIM AT AMAZON B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2687.54 À 0.18%
S&P FIN À 0.41%
* * * *
S&P IT À 0.10%
Friday, December 29, 2017 | B1
THE WALL STREET JOURNAL.
DJ TRANS g 0.35%
WSJ $ IDX g 0.42%
LIBOR 3M 1.695
NIKKEI (Midday) 22841.64 À 0.25%
See more at WSJMarkets.com
Index Funds Turn Top-Heavy With Tech
BY KENAN MACHADO
AND SAUMYA VAISHAMPAYAN
Towering Tech
Tech shares are dominating global benchmarks.
Technology sector’s weighting
As a percentage of market capitalization
30 %
Dot-com
bubble
20
10
MSCI
AC Asia
S&P 500
0
1997
2017
Note: Data for 2017 is through Dec. 19
Sources: S&P Dow Jones Indices; MSCI
HEARD ON
THE STREET
By Richard Barley
Dollar Is
Destiny for
Emerging
Markets
When it
comes to
emerging
markets, the
dollar giveth,
and the dollar
taketh away. In 2017, it has
been generous: A softer dollar has buoyed equities and
bonds and juiced returns for
foreign investors. But nobody should take that for
granted.
December served a reminder that access to dollars
can be patchy, with the cost
of borrowing dollars in Europe in particular driven up
by regulation that encourages banks to tidy up their
balance sheets. That has
eased into year-end.
But more strains may lie
ahead. The U.S. Federal Reserve is slated to raise rates
further and shrink its balance sheet. Were inflation to
pick up, the market might
reprice prospects for the Fed
to tighten policy further, lifting the dollar. There also are
concerns U.S. tax changes
could lead to massive repatriation of offshore dollars,
adding upward pressure to
the greenback. In 2005, the
year after a foreign tax-repatriation holiday, the ICE dollar index rose 13%.
The risk for emerging
markets is that the dollar
plays perhaps the most vital
role in affecting financial
conditions. True, the increased use of floating-rate
exchange regimes has softened the impact of moves in
the dollar. Floating currencies can act as shock absorbers. There are still some notable exceptions with hard
dollar pegs, like Saudi Arabia. But even in their absence, there is still a feedback effect.
A weaker dollar tends to
act as an accelerator for
emerging markets. Debt denominated in U.S. dollars becomes easier to service with
local-currency revenue as
the dollar depreciates; that
in turn creates more credit
capacity. Meanwhile, for foreign investors, a weaker dollar juices returns and encourages inflows.
Even though many emerging-market countries have
deeper domestic markets
than in the past, foreign investors putting cash to work
still makes a big difference.
This year returns have been
particularly strong: the MSCI
Emerging Markets index is
up over 30%, and a Bloomberg Barclays local-currency
government bond index has
returned more than 13%.
A rising dollar, by contrast, can crimp risk appetite
and cause foreign investors
to pull back from emerging
markets, reducing access to
Please see HEARD page B2
THE WALL STREET JOURNAL.
MSCI, and the tech sector’s
average year-end weighting
over the past decade has averaged 17%.
“It’s sort of an inherent
flaw of index funds,” said Kyle
Moore, founder of Quarry Hill
Advisors in St. Paul, Minn., referring to the way surging
stocks have a bigger share of
indexes that are market-value
weighted, like the S&P 500.
Noting that some tech
stocks have gained nearly 50%
this year, Mr. Moore said a
typical investor response
would be to trim exposure to
those stocks and take profits.
When that happens in an index fund, nothing happens automatically, he said.
Investors have collectively
plowed $436.5 billion this year
into index funds globally
through Dec. 20, according to
EPFR Global. For many, the bet
has paid off handsomely. The
S&P 500 index has climbed
20% this year and is on track
to chalk up its biggest annual
gain since 2013. The tech-oriented Nasdaq Composite Index
is up 29% this year.
The conundrum now for investors is whether they should
try to reduce their exposure to
tech and how to go about doing it. A pullback in the sector
will have a bigger impact on
the broader market, but arguably many investors in index
funds have accepted that is
what they signed up for when
they chose to invest passively.
Some investment advisers
Please see FUNDS page B2
Apple
Apologizes
Over
Phone
Slowdown
Who’s the Center of Attention
At Holiday Parties?
BY ROBERT MCMILLAN
BRYAN ANSELM FOR THE WALL STREET JOURNAL
MSCI
EM
Being passive can leave you
with too much of a good thing.
Investors who loaded up on
U.S. and Asian stock-index
funds might be surprised to
learn just what they own now:
technology stocks—a lot of
them.
Led by Apple Inc., Facebook Inc. and their peers, the
weighting of technology stocks
in the S&P 500 index has
climbed to 23.8% as of Dec. 26,
from 20.8% at the end of last
year, according to S&P Dow
Jones Indices.
Three years ago, tech
stocks had a 19.7% weighting
in the U.S. stock market
benchmark, which is tracked
by funds with more than $2
trillion in assets. Over the past
10 years, the weighting of the
tech sector in the S&P 500 at
year-end has averaged 19.6%.
The same is true in Asia,
where surging tech stocks
have powered sharp gains in
Hong Kong, South Korea and
other markets. The weighting
of technology stocks in the
MSCI Emerging Markets Index, whose components include Chinese e-commerce
companies Tencent Holdings
Ltd. and Alibaba Group Holding Ltd., was 28% as of Dec.
21, from 23.3% a year ago.
Funds that track an index—
known as passive, or index,
funds—had $384.5 billion in
assets at the end of June, according to data provided by
The Tax Accountant
Ken Bagner planned to work on tax issues for clients during his week off between the holidays. ‘My wife might not be so happy,’ he says.
BY MICHAEL RAPOPORT
When Mark Astrinos is
asked what he does, the response is typically muted.
“I’ll just say, ‘I’m a CPA,’ and
the conversation will end,”
said the certified public accountant and financial planner with Libra Wealth LLC
in San Francisco.
Not lately, though. Thanks
to the sweeping tax-overhaul
bill passed by Congress and
signed this month by President Donald Trump, people
now “light up and they’re so
intrigued and they want to
know how they’ll be affected,” he said.
In part because of the attention, Mr. Astrinos said,
“It’s never been a better
INSIDE
time to be a CPA.”
Tax professionals suddenly have found themselves at the center of the
cultural conversation. Fine
points of pass-through business income and the state
and local tax deduction are
now the stuff of everyday
small talk.
“You realize how relevant
it is, and you realize how important it is to helping your
clients,” said Adam Katz, a
PricewaterhouseCoopers LLP
tax partner specializing in
international taxes. “You find
yourself at the center of a
lot of very important discussions.”
But CPAs are paying a
price for that cachet: 16-hour
days, takeout pizza for every
INDUSTRY FOCUS, B3
SOUTH KOREA
BITES DOWN
ON BITCOIN
CURRENCIES, B11
still planned to stay home
with his family between
Christmas and New Year’s.
But he expected to have to
work a good deal during that
time, too, to make sure his
clients are prepared. The
firm, for instance, hosted a
webinar for its clients this
week on the new tax bill.
I’m going to have to walk
them through it,” he said.
“My wife might not be so
happy.”
It hasn’t been easy for tax
specialists, even if the measure’s complexity makes it
likely to prove lucrative for
them.
“I chuckle in one breath
and start sweating in the
other,” said Michael EisenPlease see CPAS page B2
To quell criticism,
the company said it
will slash prices of
replacement batteries.
in the performance of older
iPhones. The criticism was
fueled further last week when
John Poole, founder of the
computer-performance testing
group Geekbench, wrote a blog
post speculating that Apple
was intentionally throttling
performance on phones with
older batteries.
Apple then said last week it
slowed the phone’s perforPlease see APPLE page B2
Power Plants Arise Near Natural Gas
BY ERIN AILWORTH
OUTSOURCERS
ARE BIGGEST
EMPLOYERS
meal and postponed or canceled time off for the holidays. They have had to
scramble to bone up on each
complex, shifting version of
the tax overhaul and field
waves of inquiries from anxious clients.
“I’ve been in every morning about 6:30, go home to
eat around 6, back online,
check out around 9:30,” said
Jeff Watkins, a tax attorney
and CPA who works with
wealthy clients at EKS&H
LLLP in Denver. “I sent an
email yesterday to a bunch
of clients saying I’ll work
through the weekend trying
to figure things out.”
Ken Bagner, a CPA who
heads the tax practice at Sobel & Co. in Livingston, N.J.,
Apple Inc. issued a rare
apology for its handling of
concerns about performance
issues in iPhones with older
batteries following a wave of
consumer complaints.
“We know that some of you
feel Apple has let you down,”
Apple said in a note posted to
its website on Thursday. “We
apologize.”
The company said it will
slash prices of replacement
batteries and, in the coming
year, add software that gives
insight into the health of an
iPhone battery.
Apple has been under fire
since early December from users and tech analysts who said
they had noticed a slowdown
A glut of gas from U.S. shale
fields is fueling a power-plant
construction boom in several
Northeastern states, despite
fierce competition that has
caused wholesale electricity
prices to plummet.
The key for electricity producers is location. Having access to transmission lines to
move megawatts to market is
vital; but in addition by building close to natural-gas reserves, power producers can
more easily access cheap fuel
supplies.
In Pennsylvania and Ohio,
which sit above the prolific
Marcellus Shale formation,
companies including Invenergy LLC and Calpine
Corp. are building gas-fired
power plants capable of generating a combined 8.6 gigawatts
when they come online between now and 2020, according
to federal data. That output,
which is enough to power up to
8.6 million homes, would require about 1.5 billion cubic
feet of gas a day—roughly the
Transfer of Power
Natural-gas-fired electricity
generation is replacing old coal
facilities as power-plant
construction booms in the PJM
region, especially in
Pennsylvania and Ohio.
PJM grid
Retired capacity and recent and planned additions on the PJM grid
Retirements (since 2015)
Currently operating
8.7 gigawatts of additions since 2015
NATURAL GAS
COAL
–20
0
20
40
60
80
Projects under construction now through 2020
100
GW
Source: the company (grid); Energy Information Administration (capacity)
THE WALL STREET JOURNAL.
equivalent of the daily flow
through a major pipeline.
The build-out comes as
American shale drillers continue pumping so much gas
that the price of the fuel has
plunged from highs of over $13
per million British thermal
units in 2008 to less than $3
per million BTUs today. “The
economics are compelling for
gas-fired power,” said Andrew
Slaughter, head of the Deloitte
Center for Energy Solutions.
The power is bound for PJM
Interconnection LLC, a power
grid that serves some or all of
13 states, including Illinois,
Michigan and New Jersey as
well as Ohio and Pennsylvania.
Competition among wholesale
power producers in the market
served by PJM—which stands
for Pennsylvania, Jersey, Maryland—has become so fierce
that a megawatt hour traded
for $29.23 last year, the lowest
level since 1999, as far back as
the grid’s independent market
monitor tracks prices.
Though electricity demand
remains stagnant overall, the
closing of aging coal plants
across the U.S. has left some
regions in need of new generating capacity. The PJM grid sits
at the top of the list. Nearly 9.3
gigawatts of coal-fired electric
generation have been retired in
the past three years on the
grid, while 8.7 gigawatts of gasfired capacity have been added
in that period. An additional
12.5 gigawatts of gas-fired generation is currently under construction and expected online
through 2020.
Power producers like Caithness Energy LLC, based in New
York, say the new plants make
Please see GAS page B2
.
B2 | Friday, December 29, 2017
* ***
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.
N-P
Netflix....................B2,B4
Northern Trust..........B11
Pfizer...........................B3
PJM Interconnection...B1
Polygon Global Partners
...................................B10
Porsche Automobil
Holding....................B10
Procter & Gamble.......B6
F-G
R-S
Facebook......................B1
Fantasy Network......B11
Ford Motor..................B3
Frontier Airlines ......... B3
General Electric .......... B3
GoPro.........................B12
Roku ............................ B6
SAP..............................B3
Shalik Morris .............. B2
SoftBank Group..........A1
Squar Milner Financial
Services.....................B2
I-J
T
Indigo Partners...........B3
International Business
Machines...................B3
Invenergy .................... B1
J.C. Penney..................B3
JD.com.........................B4
Jiangxi Copper .......... B11
JPMorgan Chase.......B10
Taconic Capital Advisors
...................................B10
Tenaska ....................... B2
Tencent Holdings...B1,B4
Teva Pharmaceutical
Industries..................B3
Time Warner...............B6
L
Uber Technologies.A1,B2
UBS Group.................B10
U.S. Steel..................B12
Wizz Air Holdings ...... B3
Leshi Internet
Information &
Technology................B3
U-W
INDEX TO PEOPLE
A
Ain, Ross.....................B2
Alabbar, Mohamed ..... B4
Hastings, Reed ........... B4
Heisey, Brad................B2
Herro, David..............B11
B
I
Baddish, Jeffrey ......... B2
Bagner, Ken.................B1
Baldini, Marco...........B10
Belcaid, Adel...............B4
Ivascyn, Dan..............B11
K
P
Pan, Kai.......................A2
Pansari, Sushma.........B2
Peters, Greg................B4
Poole, John..................B1
S
C
L
Sarandos, Ted ............. B4
Schultz, Paul...............A2
Soukup, Mark..............B2
Charney, Gil...............B10
Cook, Tim....................B2
Lifson, David.............B10
Liu, Xingliang..............B4
Tillinghast, Joel........B11
Klisura, Dean..............A2
T
F
M
U
Flexon, Robert ............ B2
Moore, Kyle.................B1
Mullaney, Michael .... B11
Murata, Alfred..........B11
Musser, Phil................B3
Uruci, Blerina..............A2
G-H
Gero, George.............B11
Haggerty, Tom ............ B2
HEARD
Continued from the prior page
funding and dimming growth
prospects. Falling currencies
can force emerging-market
central banks to raise rates,
adding to the chill for economies. There was a full-scale
retreat between 2013 and
2016 as emerging-market
currencies fell against the
dollar. Investors pulled $155
billion from emerging equity
funds over that period, according to investment bank
Renaissance Capital, and
W
Wilkes, Geordie ........ B11
Wong, Andy ................ B2
have put less than half of
that back since.
It isn’t clear that 2018 will
indeed bring a stronger dollar. There are offsetting factors, including prospective
shifts away from ultraloose
central-bank policy in Europe and Japan. The dollar
already has risen a long way
in recent years. But many investors are looking forward
to another good year for
emerging markets, supported by the better global
growth picture. All of them
should be watching the dollar closely: It could spoil the
party.
Sliding Scale
Performance of currencies against U.S. dollar
20%
Mexican peso
Brazilian real
Russian ruble
Turkish lira
0
–20
–40
–60
–80
2013
’14
’15
Note: weekly data
Source: FactSet
FUNDS
Continued from the prior page
say they are telling clients to
reduce their tech exposure
by selling individual stocks
or shifting into other funds
in which tech has a lesser influence.
With a fund that tracks the
S&P 500 now, “it’s almost like
you’re getting a bit of a technology momentum fund,” said
Tom Haggerty, portfolio manager at Retirement Strategies,
which manages about $350
million in Jacksonville, Fla.
Mr. Haggerty said he has
talked to a few clients with
large technology holdings, including those who own specialized
exchange-traded
funds such as the PowerShares QQQ that tracks Nasdaq-listed stocks. “We have
pushed hard to have them
pull back on those positions,
especially if they hold those
stocks in a large-cap fund,”
he said.
Gary Sagui, a retired commodity trader who splits his
time between Florida and Wisconsin, said he recently became concerned about the increased weighting of large
companies with high price/
earnings ratios in his index
funds. That includes what are
known as FANG stocks—Facebook, Amazon.com Inc., Netflix Inc. and Google parent Alphabet Inc.
The 66-year-old said he
sold his holdings in a Van-
’16
’17
THE WALL STREET JOURNAL.
guard Total Stock Market exchange-traded
fund
and
switched to a managed fund
from Dimensional Fund Advisors with smaller weightings
in such stocks. “It’s not that I
don’t think they are great
companies,” said Mr. Sagui,
adding that “once you get off a
regular income and are going
to live on a pot of money
you’ve put together, the questions you’re going to ask are a
little different.”
Gains in tech stocks this
year, which have been driven
in large part by strong sales
and profit growth, have stood
out even in a banner year for
stock markets overall. Apple’s
and Facebook’s shares have
surged about 50%, and Apple’s market capitalization is
now close to $900 billion,
making it the most valuable
public company in the world.
Shares of Tencent and Alibaba have roughly doubled
this year.
The higher weighting of
tech stocks in major indexes
isn’t worrying investors who
believe the rally has further
room to run because of how
well many technology companies are performing and their
continued potential for high
growth.
“We don’t think it is out of
whack,” said Andy Wong, a senior investment manager at
Pictet Asset Management in
Hong Kong. “The benchmark
weighting is a lot higher but
compared to the tech bubble it
is not there yet,” he said referring to the S&P 500.
BRYAN ANSELM FOR THE WALL STREET JOURNAL
C
Cabot Oil & Gas..........B2
Caithness Energy........B1
Calpine.........................B1
Canyon Capital Advisors
...................................B10
Capcom......................B12
CarVal Investors.......B10
D-E
Deutsche Bank..........B10
Dimensional Fund
Advisors....................B2
Dynegy ........................ B2
Emaar Properties........B4
Embraer.......................B3
Liberty Global ........... B10
Long Blockchain........B11
Long Island Iced Tea.B11
Staff at Sobel & Co. offices in Livingston, N.J., participated in a web-based briefing on the tax overhaul for clients on Wednesday.
CPAS
not yet law,” said Jeffrey Baddish, a CPA at Shalik Morris &
Co. in Woodbury, N.Y.
December is always busy
for tax preparers as they help
clients position portfolios before a new tax year begins. But
the rush to get the tax overhaul enacted by Christmas,
and the uncertainty about
many of its provisions until
the very end, has made the
pace especially hectic this
year.
Mr. Watkins, of EKS&H, is
trying to help some clients
with multiple homes prepay
their property taxes by the
end of the year before the new
law limits taxpayers’ ability to
deduct those taxes.
One client who has two
homes in Colorado and a home
in Hawaii could save tens of
thousands of dollars by prepaying. “We’re trying to figure
out the math,” Mr. Watkins
said.
Sushma Pansari, a CPA at
Optima Taxes in San Mateo,
Calif., had been advising some
Uber Technologies Inc. employees on whether they
should accept a SoftBank
Continued from the prior page
berg, a principal with Squar
Milner Financial Services
LLC in Encino, Calif.
Mr. Eisenberg said he and
his colleagues have been “getting inundated by clients with
questions.” They worked long
hours so they could spend the
Christmas holiday at home,
but afterward, he said, “it’s
going to be crazy again.”
The process has been even
more difficult because the provisions of the overhaul kept
changing, right up to the final
version in mid-December.
Some CPAs felt compelled
to quickly learn each new version and follow every twist
and turn. “You find yourself
reading pages and pages of
legislation trying to figure out
what it means,” PwC’s Mr.
Katz said. “It’s like a big jigsaw puzzle.”
Others preferred to wait
until the law was finalized. “I
was trying to stay away from
learning about laws that are
Group Corp. tender offer for
their Uber shares. But that
calculation got affected significantly by a tax-bill provision
allowing employees of some
closely held companies like
Uber to defer income from
company-granted shares for
up to five years.
who has dementia and significant health-care expenses, and
at one point during the consideration of the bill it appeared the deduction for outof-pocket medical expenses
could be repealed. Ultimately,
it was retained and temporarily expanded.
Mr. Eisenberg analyzed her
situation, and “we believe she
should still be OK,” he said.
“We’re almost like a financial
therapist, if you will. We’re
trying to calm people down.”
All that work will have a
payoff, at least: CPAs acknowledge the complexity of the
new overhaul is likely to ensure demand for their services
remains high.
In particular, changes in the
pass-through rules, which govern businesses in which the
income is reported on the
owner’s individual tax return,
are “going to create so much
work for us,” said Mark Soukup, president of Soukup
Bush & Associates, a Fort Collins, Colo., accounting firm. “I
hate to be flip, but it’s going
to be an accountant’s retirement act.”
‘I hate to be flip,
but it’s going to be
an accountant’s
retirement act.’
That led to Ms. Pansari’s
firm “ripping up whatever
planning we already did,” she
said, to revise its analysis and
help clients sort out what to
do. “There’s a lot of rush to
figure it out.”
Uber investors and employees tendered shares equal to
about 20% of the company,
people familiar with the matter said Thursday.
Mr. Eisenberg, of Squar Milner, has a client in her 80s
GAS
Continued from the prior page
sense—despite the heightened
competition—because technological advances have made
new gas plants more efficient.
One plant that Caithness is
building in northeast Pennsylvania for about $1 billion will
be capable of generating more
than one gigawatt of electricity.
Expected to come online in
May 2018, it will be supplied
with gas pumped by Cabot Oil
& Gas Corp., whose Marcellus
drilling operations are concentrated in the same area.
“We can buy the gas at a
reasonable price because the
[gas] producers are avoiding
transportation costs they
otherwise would incur to
move it further,” said Ross
Ain, executive vice president
for Caithness.
The cheap supplies of gas
coming out of shale fields were
also a draw for Calpine, which
expects next year to bring on a
new facility in Pennsylvania capable of generating more than
800 megawatts.
“We recognize that the
abundance of domestic shale
natural gas is expected to keep
prices low for the foreseeable
future,” the company said in a
statement. “We are well positioned to take advantage of
that trend.”
Building gas pipelines to
transport fuel from places like
Pennsylvania to other regions
can be difficult, and Marcellus
gas producers say the new
power plants provide an alter-
The Marcellus Shale region in northern Pennsylvania has contributed to a glut of natural gas.
native market.
Invenergy declined to comment on its project in the region.
Dynegy Inc. Chief Executive
Robert Flexon said in the region the company has
added more than 800 megawatts of new gas-fired generation to its portfolio over the
past several years by upgrading facilities that feed PJM and
the New England market.
He called the new resources
“the cheapest megawatts you
can find,” saying his company
recently has been able to purchase gas for under $1 per million BTUs on numerous occasions.
Older coal and nuclear
power plants have been the
biggest losers in the competi-
tion among power producers,
including increased supply
from wind. Roughly threefourths of the electric-generating capacity retired on the PJM
grid since 2015 came from coalfired units, according to federal
data.
Some older natural-gas
plants are also feeling the
squeeze from newer combinedcycle gas plants, which use a
gas and a steam turbine together to produce more electricity. In PJM, a sixth of the
capacity retired since 2015
came from natural gas, according to federal data.
In addition to the 8.6 gigawatts of natural-gas electricity
already under construction in
Pennsylvania and Ohio, companies have proposed an addi-
tional 8.2 gigawatts in those
states plus West Virginia, according to federal data. But
some companies say the market is now close to being oversupplied and they expect the
boom to taper off, with some of
the planned plant projects
likely falling by the wayside.
Tenaska Inc., a private
Omaha-based energy company,
said it has shifted focus to renewable-energy
projects,
mainly wind power, after participating in the natural-gas
plant build-out.
“There were a lot of other
developers,” said Brad Heisey,
a senior vice president of strategic development and acquisitions at Tenaska. “At some
point, there is only room for so
many.”
APPLE
Continued from the prior page
mance as batteries age to prevent the iPhone from unexpectedly shutting down. When
a phone is struggling to meet
power demands, it can suddenly shut down to protect its
“electronic components,” the
company said. Apple initially
slowed older phones, including the iPhone 6, 6s and SE,
but recently extended the
throttling to newer iPhone 7
models.
Apple was quickly criticized
by bloggers and technology
pundits for not disclosing the
practice sooner, and the incident has caused some users to
question the quality of Apple’s
devices and the motivation behind Apple’s choice to curb
performance. The company
also is facing numerous law-
IFIXIT/REUTERS
B
Baidu ........................... B4
Barclays.....................B10
Beijing Bytedance
Technology................B4
BlackRock..................B11
Blockchain Mining .... B11
Blue Apron Holdings .. B6
Boeing ......................... B3
Chipotle Mexican Grill
...................................B12
Citigroup....................B10
Compass Group...........B3
Cyrus Capital Partners
...................................B10
CHARLES MOSTOLLER/ZUMA PRESS
A
Accenture....................B3
Airbus..........................B3
Alibaba Group........B1,B4
Alphabet ................ B2,B3
Amazon.com.....B2,B4,B6
Ambac Financial Group
...................................B10
Ambarella..................B12
Anheuser-Busch InBev
...................................B10
Apotex.........................B3
Apple...........................B1
AT&T............................B6
Automatic Data
Processing.................B6
Reduced battery costs may cause people to keep devices longer.
suits over the issue.
“We have never—and would
never—do anything to intentionally shorten the life of any
Apple product, or degrade the
user experience to drive customer upgrades,” Apple said
Thursday.
The company said it would
reduce the out-of-warranty
cost of battery replacement to
$29 from $79 for customers
with an iPhone 6 or later
model. Apple said it plans to
introduce an update to its mobile operating system in early
2018 that reveals the health of
a phone’s battery.
Reduced battery-replacement costs may cause people
to hold on to their devices longer. Customers increasingly
keep their smartphones for
longer, pushing the time between device upgrades toward
three years from two years,
according to Guggenheim Partners. Those trends have
slowed iPhone volume growth
in recent years. Shipments of
iPhones peaked at 231 million
units in fiscal 2015 and fell to
216 million units in fiscal 2017.
Apple seldom apologizes. In
2010, co-founder Steve Jobs
apologized for an antenna issue on the iPhone 4 that affected phone calls but stopped
short of saying Apple’s design
was to blame. His successor as
CEO, Tim Cook, has been more
inclined to apologize. In 2012,
he responded to customer
complaints about the company’s Maps app with a letter
of apology.
—Tripp Mickle
contributed to this article.
.
Friday, December 29, 2017 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
By Vipal Monga,
Jacquie McNish
and Sara Schaefer
Muñoz
founder and chairman Barry
Sherman, who was the architect
of the generic drugmaker’s litigation-heavy strategy.
Mr. Sherman, 75 years of
age, and his wife, Honey, 70,
were found dead in their Toronto mansion on Dec. 15. They
died from what police said was
“ligature neck compression,”
or a type of strangulation.
As thousands of people
mourned the deaths at the
couple’s funeral last week,
people familiar with Apotex
said Mr. Sherman had been its
heart, largely because he set
the tone for its sharp-elbow
approach to business.
“Apotex is a singular company that uses aggressive tactics
and frequent litigation because
Barry Sherman made it
so,” said Amir Attaran, a professor of law and medicine at the
University of Ottawa.
The Canadian company
would challenge patents on
Mr. Sherman set
the tone for the drug
company’s sharp-elbow
approach to business.
JOHN MAHLER/THE TORONTO STAR/ZUMA PRESS
brand-name drugs, and winning
would allow it to be the first to
offer a lower-price generic in
the same market, enabling it to
reap profits.
“It’s otherwise undistinguished and it isn’t clear that
[Mr. Sherman] has groomed
an heir apparent,” said Mr. Attaran. Mr. Sherman and Apotex greatly benefited from
Canada’s generic-drug pricing
structure, he said, which has
Canadians paying some of the
highest generic-drug prices in
the industrialized world.
Apotex spokesman Jordan
Berman said Mr. Sherman did
put in a succession plan when
he stepped down as chief executive. Apotex has only ever
asked that prices be fair and
applied consistently to all
manufacturers, he said, adding
that litigation is commonplace
in the drug sector.
Lawyers familiar with Mr.
Sherman’s legal strategy said he
paid unusually close attention
to Apotex’s multiple lawsuits because he viewed them as an essential weapon against global
drugmakers.
“Every single lawsuit mattered to him. He was in a war
with the multinationals,” said
one person close to the company.
“The concept of letting go
was not anywhere in his DNA,”
Apotex Vice Chairman Jack
Kay, who worked alongside
Mr. Sherman for 35 years, said
in a memorial speech.
Mr. Sherman had been considering a sale of the company
before the recent downturn in
generic-drug prices in the U.S,
said several people familiar
with Apotex. Those prices have
been falling because of more
competition in the generic market, driven in part by faster approvals by the U.S. Food and
Drug Administration.
Apotex’s Mr. Berman declined to comment on any
plans for a sale.
Privately held Apotex has
11,000 employees in research,
development, manufacturing,
and distribution in facilities
around the world. Its website
lists annual sales of two billion
Canadian dollars (US$1.58 billion).
Mr. Sherman stepped down
as chief executive five years ago.
At that time, Mr. Kay became
chief executive, and in 2014, Jeremy Desai took the role.
Mr. Desai and Apotex were
sued in July by Israeli generics
company Teva Pharmaceutical Industries Ltd. for allegedly taking trade secrets about
products in development.
Apotex disputes the claim
and last month asked the
court to dismiss the lawsuit on
the grounds of insufficient evidence. Barry Gross, a lawyer
for Mr. Desai, declined to comment. Apotex’s Mr. Berman declined to comment on Mr. Desai’s involvement in the suit
and didn’t make him available.
At the time of his death, Mr.
Sherman was one of Canada’s
wealthiest entrepreneurs, with
an estimated net worth of
US$3.7 billion, according to
Canadian Business, an online
magazine.
Two weeks after the bodies
of Mr. Sherman and his wife
were found, police haven’t
ruled the deaths as homicides,
saying only they are being
treated as “suspicious.” The
Toronto Police’s homicide unit
is investigating.
—Joseph Walker
contributed to this article.
Apotex founder Barry Sherman pursued frequent litigation.
As Chinese authorities order
an embattled technology entrepreneur back to China to handle
his financial problems, a local
court has seized his assets.
LeEco Holdings founder Jia
Yueting, whose company’s businesses include online video, electric cars and smartphones, was
a rising star in China. But the
company has been mired in
credit woes and a cash crunch.
This week, the Beijing First
Intermediate People’s Court
seized 1.3 million yuan, or
roughly $200,000, in Mr. Jia’s
bank deposits and ordered the
seizure of one billion shares of
LeEco’s listed unit, Leshi Internet Information & Technology
Corp., along with two properties
that Mr. Jia owns in Beijing.
In a notice posted online this
week, the Beijing court said it
was acting on a request from
Huafu Securities to enforce an
earlier court order dated Sept. 1.
It also said Mr. Jia has no other
“bank deposits, house-registration records or vehicle-registration records” that can be seized
to pay off his debts, and that he
still owes about 202 million
yuan to Huafu Securities.
The seizure coincides with an
order from the China Securities
Regulatory Commission for Mr.
Jia, shown in Beijing last year, to
return to China by Sunday to
handle his debt.
It is unclear where Mr. Jia is;
the commission’s notice didn’t
elaborate on his whereabouts.
Leshi didn’t immediately respond
to a request for comment.
The court order and request
for Mr. Jia’s return follow a
Shanghai court’s decision in July
to freeze $181 million of Mr. Jia’s
assets and $2 billion of shares
of Leshi over a missed interest
payment. Mr. Jia resigned as
Leshi chairman in July. He remains the chairman of LeEco.
—Alyssa Abkowitz
and Lin Zhu
INDUSTRY FOCUS
Outsourcing Grabs More of Workforce
BY LAUREN WEBER
The list of the world’s
largest employers was once
dominated by household
names like Ford Motor Co.,
J.C. Penney Co., and General Electric Co., companies
that made and sold things.
A new analysis conducted
for The Wall Street Journal
shows those names are nowhere to be found on that
list today. In their place are
large outsourcing companies
like Compass Group PLC,
Accenture PLC and other
businesses that essentially
lease workers to clients.
Of the top 20 global employers in 2017, five are outsourcing and “workforce solutions” companies,
according to an analysis by
S&P Global Market Intelligence. In 2000, only one employer in the top 20—International Business Machines
Corp., which offers outsourced information-technolgy services among its
many businesses—fell into
that bucket.
Outsourcing companies
are vacuuming up the
world’s workers as traditional employers are handing
over more of their tasks to
nonemployees, a shift that
has transformed the way
corporations do business and
profoundly affected workers’
prospects and pay.
The past two decades
have been boom times for
the outsourcing sector, with
the annual value of contracts
growing to $37 billion in
On behalf of loan-servicing companies, Accenture’s
people collect debts from
homeowners who defaulted
on their mortgages. For large
insurance clients, doctors
and nurses employed by Accenture make wellness calls
to diabetes patients. For Alphabet Inc.’s Google, it oversees contractors who review
content for the search giant.
“We become part of our
clients’ operations; we become part of the talent that’s
in their operations,” says
Debbie Polishook, group
chief executive of Accenture
Operations, which houses the
company’s outsourcing work.
Companies say that unloading tasks to outside firms
allows employees to do more
high-value jobs. Providers
like Accenture tell companies
they can do their work better
and more cheaply, prodding
executives to view labor as
an on-demand resource they
can rent as needed.
The breadth of services on
offer from outsourcing firms is
staggering. Compass Group
was founded in 1941 to run
factory cafeterias in wartime
England, eventually branching
out into corporate catering. It
now employs more than
550,000 and counts among its
subsidiaries firms like Eurest
Services, which staffs and
manages mailrooms for clients,
provides them with full-time
receptionists, sets up their
conference rooms for meetings
and operates their warehouses.
Eurest’s clients include Google,
SAP SE and Pfizer Inc.
SIMON SIMARD FOR THE WALL STREET JOURNAL
TORONTO—The path forward
for Apotex Inc. is uncertain following the sudden death of
DAMIR SAGOLJ/REUTERS
Founder’s Death Beijing Court Seizes Chinese Entrepreneur’s Assets
Leaves Apotex
In State of Flux
UPS runs a logistics facility for Pratt & Whitney in New Hampshire.
2016 from $12.5 billion in
2000, according to research
and advisory firm Information Services Group Inc. The
market is expected show
growth again in 2017 and
2018, thanks partly to a double-digit increase in big technology projects as more
companies transfer massive
volumes of data to the cloud.
For employers, dispatching work to outside companies saves money and lets
them access skills they need
without adding to their head
count. Workers in jobs that
have gone to outsourcers,
though, can feel moved
around like chess pieces, either displaced entirely or rebadged as employees of a
service provider, sometimes
with fewer benefits and
lower pay. A growing body
of economic research sug-
gests that outsourcing is a
significant factor fueling the
rise of income inequality in
the past decade.
“If all the engineers are in
one firm and the cleaners are
in another, you get less diversity within firms and more
inequality across firms,” says
Nicholas Bloom, an economist
at Stanford University.
Dublin-based Accenture,
best known as an IT and
consulting firm, has become
the de facto back office for
hundreds of client companies. The firm employs
435,000 people globally—up
from some 200,000 in
2010—and serves 95 of the
Fortune Global 100 with consulting or outsourcing services or both. Outsourcing
made up 46% of the company’s 2017 revenue, or $16.1
billion, up from 41% in 2011.
Embraer Talks Raise Questions
BY SAMANTHA PEARSON
SÃO PAULO—Brazil’s defense minister said the government was concerned that
talks about Boeing Co.’s possible takeover of Embraer SA
had gone ahead without its
knowledge, and demanded explanations from the Brazilian
aircraft maker.
Raul Jungmann reiterated
Thursday that the government,
which has a golden share in Embraer, wouldn’t permit a change
in control of the company. The
golden share gives the government veto power over such a
transaction. “No country would
agree to give up control of a
company like this one,” the minister said in Brasília.
Embraer and Boeing confirmed last week that they discussed a plan for the U.S. company to buy the smaller
Brazilian aircraft maker. Brazilian President Michel Temer
immediately cast doubts on
the negotiations, saying that
the government was against a
Airbus Firms Up
Indigo Jet Order
Airbus SE said Thursday it
had completed a record-setting
order for 430 jets from four
airlines linked to a U.S. privateequity firm, narrowing the gap
opened up by rival Boeing Co.
on new plane deals in 2017.
The European plane maker
booked the order first outlined
at last month’s Dubai Airshow
for A320neo family jets destined for carriers linked to Indigo Partners LLC: Frontier
Airlines in the U.S., Hungary’s
Wizz Air Holdings PLC, Mexico’s Volaris and JetSmart, a
new Chile-based carrier.
The sale is the largest bulk
buy to date of planes in terms
of aircraft number, with the
jets carrying a list price of
$49.5 billion before discounts.
Airbus and Indigo didn’t
disclose the actual terms.
The deal more than doubles
year-to-date firm orders for
Airbus, which had booked 333
aircraft sales through the end
of November, the plane
maker’s latest update. Boeing
had booked 844 sales as of
Dec. 9.
—Doug Cameron
takeover, but would welcome
investment in the company.
Mr. Jungmann said Thursday that the government only
agreed to privatize the company during the 1990s if it
could hold on to a golden
share that gives the government the right to veto signifi-
cant changes. Embraer declined to comment. In a
statement, Boeing Senior Vice
President Phil Musser said,
“we are pleased with the many
prominent voices supportive
of the value a combination
would create for Brazil, Embraer and our customers.”
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.
THE WALL STREET JOURNAL.
B4 | Friday, December 29, 2017
TECHNOLOGY
WSJ.com/Tech
CHINA CIRCUIT | By Li Yuan
In 2018, Cowardly Tech Lions Need Courage
Peer to Peer
Some Chinese tech companies,
which started out by taking their
business models from Silicon
Valley, now rival their American
counterparts in valuation.
Market cap in billions of dollars
U.S.
ALY SONG/REUTERS
China’s president, Xi Jinping, on a screen at this year’s World Internet Congress in Wuzhen, China.
Business News, wrote recently on his personal blog.
M
r. Qin has written of
his disappointment
with the big tech
companies’ penchant for
public spats and smear campaigns. He has called out Alibaba and Tencent for not behaving in ways that he
thinks great companies are
supposed to.
Like their Silicon Valley
counterparts, Chinese tech
companies have created innovative products and services. As in the U.S., their
founders enjoy rock-star status among the public.
They’re seen as smart and
hardworking, unlike moguls
in industries such as real estate, which are seen as rife
with bribery and nepotism.
The influence their com-
Netflix Raises Salaries
Because of Tax Law
BY TREY WILLIAMS
Netflix Inc. said Thursday
that it plans to increase the
annual salary for a number of
its top executives in 2018.
Most notably, Chief Content
Officer Ted Sarandos will earn
a $12 million base salary in
2018, after bringing in a salary
of $1 million in the past three
years, according to a filing
with the Securities and Exchange Commission.
The streaming giant cited
the recent passage of the U.S.
federal tax overhaul as the
reason. The company said salaries of more than $1 million
for named executives, other
than the chief financial officer,
were subject to a substantial
surcharge. Because of that,
Netflix had a performancebased bonus plan for certain
executives. In 2017, Mr. Sarandos had a $1 million salary but
a bonus target of $9 million.
Netflix Chief Executive
Reed Hastings will earn
$700,000 in salary, with $28.7
million in annual stock options. Mr. Sarandos will receive $14.3 million in stock options in addition to his $12
million salary.
Chief Product Officer Greg
Peters will earn a $6 million
salary, and $6.6 million in
stock options.
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panies wield over society is
arguably much greater than
their U.S. analogues. Alibaba,
which started in e-commerce, and Tencent, in online games and social media,
oversee empires that stretch
from payments to entertainment and meal delivery, and
they reach nearly all 751 million Chinese internet users.
That has given them huge
swaths of customer data
while facing fewer restrictions than their U.S. counterparts. They also see little option other than to work with
China’s authoritarian government, which is determined
to harness new technologies
to build a surveillance state
and control society.
“Internet moguls are
worse than robber barons,”
an investor told me last
week. “If I look at my career,
I have created a bunch of
monsters, unfortunately.”
Tencent didn’t respond to
requests to comment. An Alibaba spokeswoman says the
company creates jobs and
economic opportunities for
small business in China and
advocates for rural education, poverty alleviation, environmental conservation
and other social causes.
Liu Xingliang, head of research at Beijing-based analytics firm Data Center of
China Internet, says critics
of the tech giants don’t appreciate how powerless they
are, facing a government
that can punish their disobedience or reward them with
lucrative orders. As for developing facial-recognition
and other surveillance technologies, he says, if the big
companies don’t form part-
$737
$83
E-commerce
Amazon
Alibaba
567
440
Social media
Facebook
Tencent
511
493
Ride-hailing*
Uber
Didi
68
56
Social media
Twitter
Weibo
18
23
Note: As of Dec. 27, 2017
*Private market valuations
Sources: WSJ Market Data Group; CB
Insights (ride-hailing valuations)
nerships with the government, someone else will.
“The giants are dancing
with shackles on their feet,”
says Mr. Liu. “Ordinary folks
only see their glamorous
dancing steps but miss the
shackles.”
S
till, the Chinese internet industry would do
well to heed the socialmedia chatter and grumbling
from investors as signs that
the public’s goodwill is dwindling. To prod that soulsearching, here are questions
they can ask themselves.
First, how influential
is your company? When
talking to executives at the
biggest internet companies, I
always find it perplexing
that, while they’re proud
that their services and products are popular, they’re re-
luctant to admit that their
companies are influential.
Like it or not, these internet platforms wield enormous power. Search engine
Baidu decides the results of
online queries for most Chinese. Toutiao determines
what news its 219 million
monthly active users read. If
that isn’t influence, what is?
Second, as powerful as
the Chinese government is,
is it absolutely crucial to
compete for government
orders? When I challenge
the companies about taking
government contracts, they
always say that if they don’t
do it, their rivals will. But
the market is now big
enough for companies to
survive without government
largess. True, their size,
share price and market valuation might lag behind as a
result, but, in turn, they
might face fewer demands
from the government.
Third, is a little courage possible? I expected the
big Chinese e-commerce
companies to show some
spine after the Beijing government this winter cleared
tenements seen as fire hazards, summarily evicting
large numbers of migrant
workers, including delivery
workers for Alibaba and
JD.com. None of those companies spoke out. Instead,
Alibaba and Tencent started
a very public war, with their
executives nattering at conferences and online that the
other’s business model is
more harmful to society.
“Chinese companies will
only have a little humility
when their valuations fall,”
says a venture capitalist.
“Winning is everything.”
Follow Li Yuan on Twitter
@LiYuan6 or write to
li.yuan@wsj.com.
Dubai Tycoon Takes Aim at Amazon
BY NICOLAS PARASIE
DUBAI—Around the time
Mohamed Alabbar launched
his $1 billion e-commerce firm
Noon, the Dubai billionaire
gave his employees a piece of
advice: If you want to go home
at 5 p.m. each day, don’t work
for me.
“I want people who sleep in
the office,” says Mr. Alabbar,
the founder of the now threemonth-old startup. “Want to
go walk your dog in the afternoon and all that? I’m not the
guy you work for.”
A top Noon executive took
the cue and began bringing his
sleeping bag to the office.
Mr. Alabbar is better known
in Dubai as a risk-taking realestate tycoon than a startup
entrepreneur. His firm Emaar
Properties built the world’s
tallest tower, the Burj Khalifa,
as well as the glitzy landmark
Dubai Mall. But at 60 years
old, Mr. Alabbar wants to create a different kind of infrastructure: a viable competitor
to Amazon.com Inc. and other
global e-commerce giants,
which are moving into the
Middle East to capitalize on an
online shopping boom.
How Mr. Alabbar fares will
provide a measure of the region’s ability to move beyond
oil and real estate into the
economic activities of the future. Meanwhile, the businessman is determined to call attention to what his role at a
tech startup says about where
the opportunities are.
“I need to motivate other
Arab people: Wake up! Wake
up! Stop doing this dumb business of real estate,” says Mr.
Alabbar, who is chairman of
Emaar and Abu Dhabi-based
developer Eagle Hills.
Mr. Alabbar warns that
time is running out for regional entrepreneurs. This
year, Amazon acquired Dubaibased online retailer Souq.com
for $579 million. The Seattlebased retail behemoth has already expanded Souq’s offering of products and is
investing in upgrading its
technology platforms.
Souq’s United Arab Emirates clients recently gained access to more than one million
Amazon products. They can
place orders in Arabic and pay
in local currency. Previously,
an online shopper in the region had the choice between a
local competitor such as Souq
KAMRAN JEBREILI/ASSOCIATED PRESS
Chinese
technology
companies
have long
taken their
cues from Silicon Valley, hence the Chinese equivalents to Google,
YouTube, Twitter and Uber.
This past year brought a
reckoning for some Silicon
Valley icons. Uber Technologies had to do some soulsearching about its workplace culture that allegedly
permitted sexual harassment. Facebook and Google
parent Alphabet acknowledged roles in spreading fabricated news that might have
amped up social divisions in
the U.S. during last year’s
presidential election.
So will 2018 see China’s
tech giants engage in a bout
of soul-searching too? After
all, 2017 has seen their
power and social impact
swell. Alibaba Group Holding and Tencent Holdings—
which dominate mobile internet services—doubled in
market value, lofting them
among the world’s 10 most
valuable tech companies.
Beijing Bytedance Technology, parent of artificial-intelligence-powered news app
Toutiao, is seeking $30 billion in valuation in its newest funding round, higher
than Twitter’s $18 billion.
Some investors, others in
the industry and social-media users think the big tech
companies should do some
self-reflection, pointing to a
brewing dissatisfaction with
their outsize influence and
commercial power.
“Do you really think that
the internet world is yours
and that you can control it
easily, use it whichever way
you like and rob it as you
wish?” Qin Shuo, a former
editor of newspaper China
Billionaire real-estate developer Mohamed Alabbar is behind the e-commerce startup Noon.
with a more limited product
offering or one of Amazon’s
global sites, without the possibility of ordering in Arabic or
paying in local currency.
Six months before Amazon’s Souq takeover, Mr. Alabbar announced his plans to
start Noon. Half of the $1 billion seed money came from
Saudi Arabia’s Public Investment Fund and the rest from a
group of Gulf investors. The
deal made Noon one of the
most expensive tech ventures
in the region.
The PIF didn’t respond to a
request to comment.
With more than 300 million
inhabitants, rising disposable
incomes and a burgeoning
tech-savvy youth population,
the Middle East is in the early
stages of an e-commerce
boom, analysts say.
Adel Belcaid, a principal in
the Middle East at consulting
firm A.T. Kearney, estimates
regional online shopping sales
could double in value to more
than $24 billion between now
and 2020. E-commerce currently contributes less than
0.5% to the economy, compared with 2% to 3% in more
mature markets, Mr. Belcaid
says. “The Middle East is an
untapped opportunity for ecommerce,” he says.
Yet Noon, at least initially,
struggled to seize the opportunity. The company became
operational in September, 10
months after the venture was
announced with the promise it
would be ready to go live
shortly after. The official
launch was delayed as management attempted to develop
the firm’s e-commerce platform. In an attempt to reduce
soaring startup costs, Noon
laid off at least 200 employees
out of a total of 700 as it readied itself, according to people
familiar with the situation.
Mr. Alabbar, who acknowledged the layoffs but declined
to provide specifics, blames
Amazon’s entry into the market for the need to cut costs
and push back the launch.
“We had to shift gears and
change our strategy,” he says.
Mr. Alabbar is a known
risk-taker. A decade ago,
driven by curiosity, he had his
private plane take him to
North Korea, where he went
sightseeing for a day before
getting a worried call from
Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum,
asking what he was doing
there. He has toured the Gaza
Strip to better understand the
Palestinian issue, and has
scouted hotel sites in Baghdad.
With Noon, Mr. Alabbar
says he is in new territory
again, although he claims the
competitive advantage of being from the region. Noon recently launched its operations
in Saudi Arabia, a market that
analysts say has the potential
to become the region’s biggest. “This is my region, and
we want to have a part in it,”
Mr. Alabbar says.
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | B5
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THE WALL STREET JOURNAL.
B6 | Friday, December 29, 2017
BUSINESS & FINANCE
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BANKRUPTCIES
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PUBLIC NOTICES
< !"
Here Are Bests, Bloopers
From Past Year in Deals
It was a dramatic year in
the world of deals, from Amazon.com Inc.’s surprising buy
of Whole Foods Market to Automatic Data Processing
Inc.’s chief executive declaring
an “ass-whooping” over activist investor William Ackman.
Here, The Wall Street Journal’s deals team presents its
view on who gained and who
lost out in the past year—as we
call it, the bests and bloopers.
Bests
Amazon. Amazon’s $13.7 billion deal to buy high-end grocer Whole Foods was so well
received by shareholders that
it practically paid for itself. The
day the e-commerce giant announced the blockbuster deal
in June, its stock rose about
3%, creating about $14 billion
in market value and essentially
covering the deal price.
—Dana Mattioli
VIVIANE MOOS/ZUMA PRESS
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
ADP. When Mr. Ackman
took a stake in ADP, the human-resources company’s CEO,
Carlos Rodriguez, came out
swinging and never stopped.
First, he disclosed what he
said were the demands of Mr.
Ackman’s Pershing Square
Capital Management LP—
board control and a new CEO—
launching a pre-emptive strike
the day he knew Mr. Ackman
was headed on vacation. Then
he called the activist a “spoiled
brat” on CNBC. At a November
vote, ADP won big. Mr. Ackman said the vote showed he
had support; Mr. Rodriguez
countered that the outcome
was an “ass-whooping.”
—David Benoit
Roku. The 2017 calendar for
initial public offerings had few
well-known companies in its
ranks, and some of them—notably Snap Inc. and Blue
Apron Holdings Inc.—stumbled. Roku Inc. was an exception. The streaming-media and
hardware company’s shares
Amazon’s deal for Whole Foods was one of the high points of 2017.
jumped 68% on their first day
of trading, and its stock is up
nearly 300% from its IPO price.
—Maureen Farrell
Bloopers
P&G. At its annual meeting
in October, Procter & Gamble
Co. said it had won a close
shareholder vote to keep activist Nelson Peltz off the
board by about 6.15 million
shares, or 0.2% of its total
shares. Mr. Peltz said it was
too close to call. A month
later, another count said Mr.
Peltz won by 43,000 votes, or
0.0016%, and this time P&G
said it was too close to call. A
month after that, P&G threw
in the towel and said he could
join the board anyway, despite
a final count showing he lost
by about 500,000 votes, or
0.02% of shares outstanding.
—David Benoit
Blue Apron. Blue Apron,
whose stock is trading nearly
60% below its $10-a-share IPO
price, holds the title of worstperforming IPO of 2017, according to Dealogic. Even
more extreme is that Blue
Apron’s underwriting team,
led by Goldman Sachs Group
Inc. and Morgan Stanley,
kicked off its IPO roadshow
marketing shares at $15 to $17,
days after Amazon announced
plans to buy Whole Foods. Investors were already wary of
the meal-kit company’s dwindling cash reserves, high marketing costs and hefty customer churn. Blue Apron’s
CEO and co-founder, Matthew
Salzberg, was replaced in November.
—Maureen Farrell
AT&T and Time Warner. As
recently as early November,
AT&T Inc. told investors its deal
to buy Time Warner Inc., worth
$85 billion when it was announced in 2016, was still on
track to close by year end. In
November, the government sued
to block the deal in the first major antitrust action under the
Trump administration. The Justice Department says the deal
would hurt consumers because
AT&T could charge rivals higher
prices for content. AT&T disagrees and is preparing to battle
it out in court.
—Miriam Gottfried
LEGALNOTICES
(800) 366-3975 | sales.legalnotices@wsj.com
For more information visit: wsj.com/classifieds
© 2017 Dow Jones & Company, Inc. All Rights Reserved.
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.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24837.51 s 63.21, or 0.26%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.87 21.61
P/E estimate *
20.25 18.72
Dividend yield
2.10
2.41
All-time high 24837.51, 12/28/17
Nasdaq Composite Index
Last
2687.54 s 4.92, or 0.18%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 25.25 24.95
P/E estimate *
19.99 19.04
Dividend yield
1.90
2.07
All-time high: 2690.16, 12/18/17
Last Year ago
6950.16 s 10.82, or 0.16%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.89
24.45
P/E estimate *
21.45
19.54
Dividend yield
1.05
1.23
All-time high: 6994.76, 12/18/17
Current divisor 0.14523396877348
Session high
t
DOWN
Session open
t
Close
UP
Close
25200
2700
7000
24500
2650
6875
23800
2600
6750
23100
2550
6625
22400
2500
6500
Open
Session low
65-day moving average
65-day moving average
65-day moving average
6375
2450
21700
Bars measure the point change from session's open
Oct.
Nov.
Sept.
Dec.
6250
2400
21000
Sept.
Oct.
Nov.
Sept.
Dec.
Oct.
Nov.
Dec.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
52-Week
Low
High
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
24839.23 24797.13 24837.51
724.10
Utility Average
Total Stock Market
Barron's 400
723.89
3.48
27825.74 27762.43 27824.45
716.61
714.05
716.50
57.41
1.83
Nasdaq Stock Market
Nasdaq Composite
6954.80
Nasdaq 100
6452.07
719.66
6936.75
6432.68
6950.16
6441.42
0.26
63.21
Transportation Avg 10685.24 10601.50 10660.11 -37.10
-0.35
0.48
0.21
0.26
0.16
10.82
6.27
0.10
24837.51 19732.40
25.3
25.7
11.2
10697.21
8783.74
17.3
17.9
5.0
774.47
651.14
9.2
9.7
4.4
27830.03 23276.73
716.60
600.24
19.0
18.5
19.5
19.1
8.6
9.5
6994.76
6513.27
5383.12
4863.62
27.9
31.0
29.1
32.4
2687.66
2682.69
2687.54
4.92
0.18
2690.16
2238.83
19.5
20.0
8.8
MidCap 400
SmallCap 600
1911.68
943.40
1902.11
938.89
1911.28
943.40
5.76
3.69
0.30
0.39
1911.28
945.12
1660.58
815.62
14.6
12.1
15.1
12.6
9.2
10.5
Other Indexes
Russell 2000
1549.04
1542.52
1548.93
4.99
0.32
1548.93
1345.24
13.6
14.1
8.4
12853.92 12823.56 12853.09
12853.09 11056.89
31.11
0.24
16.1
16.2
5.4
565.52
563.51
565.49
1.36
0.24
565.49
503.24
11.1
11.7
3.7
NYSE Arca Biotech
4275.14
4241.39
4272.40
14.75
0.35
4304.77
3075.02
38.1
38.9
7.0
NYSE Arca Pharma
548.65
546.59
547.23
0.50
KBW Bank
107.65
106.98
0.48
PHLX§ Gold/Silver
107.63
85.83
84.56
0.14
PHLX§ Oil Service
85.45
149.24
148.27
148.54
-0.35
1269.24
10.44
1264.15
10.07
1266.30
10.18
NYSE Composite
PHLX§ Semiconductor
Cboe Volatility
0.09
0.45
0.16
-0.24
0.23
2.93
-0.29 -2.77
Nasdaq PHLX
Company
Symbol
Volume
(000)
Region/Country Index
Close
Net chg
After Hours
% chg
High
Latest
% chg
Net chg
3.89
1.02
0.84
DJ Americas
645.20
Sao Paulo Bovespa 76402.08
S&P/TSX Comp
16221.95
S&P/BMV IPC
48861.94
Santiago IPSA
4200.49
1.53
329.55
18.82
209.38
41.38
389.54
387.41
3991.36
5339.42
12979.94
1512.48
22120.95
547.06
1150.58
10093.10
571.90
9405.80
7622.88
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6088.10
Shanghai Composite 3296.38
Hang Seng
29863.71
S&P BSE Sensex
33848.03
Nikkei Stock Avg
22783.98
Straits Times
3399.10
Kospi
2467.49
Weighted
10567.64
6,497.5 267.80
-0.07
-0.03 267.93 267.43
Bank of America
BAC
4,545.5
29.78
-0.02
-0.07
29.80
29.70
Altria Group
MO
3,740.1
71.25
-0.02
-0.03
71.59
71.25
Wells Fargo
WFC
2,928.6
61.27
-0.03
-0.05
61.42
60.99
PwrShrs QQQ Tr Series 1 QQQ
2,677.7 156.66
-0.07
-0.04 156.77 156.51
Wal-Mart Stores
WMT
2,533.8
99.40
…
Facebook Cl A
FB
2,481.2 177.88
-0.04
-0.02 178.70 177.78
Kinder Morgan
KMI
2,184.1
18.30
-0.01
-0.05
18.33
unch.
99.52
99.26
18.22
Percentage gainers…
248.4
10.74
0.89
9.04
10.74
9.53
Ultra Clean Holdings
UCTT
36.9
22.45
1.30
6.15
22.48
21.15
McEwen Mining
MUX
26.0
2.30
0.08
3.60
2.30
2.22
Potash Corp
POT
86.5
21.21
0.67
3.26
21.30
20.50
QIWI ADR
QIWI
46.6
15.70
0.48
3.15
15.88
15.06
160.7 125.29
...And losers
560.52
469.13
13.9
13.6
0.5
88.02
17.8
17.3
12.9
96.72
76.42
4.2
8.4
7.7
192.66
117.79
-19.4
-19.2 -11.5
Axovant Sciences
901.69 37.5
9.14 -23.9
39.7 22.0
-27.5 -11.1
-9.83
-7.28 135.12 125.29
8.8
7.95
-0.35
-4.22
8.30
7.95
AXON
10.4
5.08
-0.22
-4.15
5.34
5.08
Avon Products
AVP
17.5
2.07
-0.08
-3.72
2.15
2.07
Digital Power
DPW
94.0
3.60
-0.09
-2.44
3.72
3.56
Union Pacific
UNP
Iovance Biotherapeutics IOVA
YTD
% chg
0.13
0.26
0.32
22.0
21.9
24.2
0.24
0.43
0.12
0.43
0.99
19.4
26.9
6.1
7.1
30.3
–0.26
–1.00
–1.93 –0.50
–11.71 –0.29
–29.42 –0.55
–90.08 –0.69
0.40
6.08
–80.32 –0.36
–1.54 –0.28
0.14
1.66
–72.10 –0.71
–0.24
–1.40
–0.26
–24.64
0.03
2.20
18.20
20.60
266.05
–63.78
–127.23
7.43
30.82
80.97
0.30
0.63
0.90
–0.19
–0.56
0.22
1.26
0.77
7.8
10.6
10.7
9.8
13.1
2.8
15.0
13.2
–0.2
7.9
7.0
14.4
6.7
7.5
6.2
35.7
27.1
19.2
18.0
21.8
14.2
Company
Symbol
Live Ventures
vTv Therapeutics Cl A
Technical Communications
Energous Corp.
Helios Matheson Analy
LIVE
GAIN Capital Holdings
Westmoreland Resource
VelocityShares 3x Lg Nat
Fortress Biotech
KBS Fashion Group
GCAP
Digirad
Aradigm
Ampio Pharmaceuticals
Optibase
Sorrento Therapeutics
DRAD
6.71
1.51
3.10
7.87
1.51
50.60
37.28
33.88
33.21
28.01
9.85 2.05
2.73 0.51
70.69 11.87
4.00 0.64
4.98 0.79
26.28
22.97
20.18
19.05
18.85
19.97
5.56
12.25
31.57
6.90
VTVT
TCCO
WATT
HMNY
WMLP
UGAZ
FBIO
KBSF
2.65
7.05
4.19
8.70
3.65
ARDM
AMPE
OBAS
SRNE
0.40
0.99
0.57
1.15
0.48
High
52-Week
Low
% chg
17.78
16.34
15.75
15.23
14.96
Symbol
General Electric
Energous Corp.
SPDR S&P 500
Bank of America
iShares MSCI Emg Markets
GE
LiNiu Technology Group
Chesapeake Energy
Micron Technology
Rite Aid
Finl Select Sector SPDR
LINU
WATT
SPY
BAC
EEM
CHK
MU
RAD
XLF
Yangtze River Development
Pareteum
Sigma Labs
VelocityShares 3x
Cerecor
YERR
10.02 5.56
5.92 2.10
511.00 49.72
5.13 2.19
18.00 1.41
49.2
-52.1
-85.5
44.4
10.7
Presbia
Tel Instrument Elec
ReTo Eco-Solutions
Future FinTech Group
Ekso Bionics Holdings
LENS
-45.4
343.4
341.2
14.5
-27.0
PS UlSh Bloomberg Nat Gas
Nxt-ID
Siebert Financial
Digital Power
Wins Finance Holdings
KOLD
5.68
7.09
4.21
10.40
6.08
1.90
0.78
0.38
6.40
1.50
Selected rates
A consumer rate against its
benchmark over the past year
Five-year ARM, Rate
Volume % chg from Latest Session
(000) 65-day avg Close % chg
60,011
43,951
38,573
33,324
32,419
-21.3
4070.6
-44.6
-51.0
-36.6
32,319
30,219
28,656
27,724
27,631
2366.2 3.12 134.59
20.5 4.04 4.12
-28.1 41.81 -1.58
4.2 2.00 -0.50
-51.8 28.11 0.39
17.36 -0.12
31.57 33.21
267.87 0.21
29.80 0.24
46.90 0.69
52-Week
High
Low
31.88 17.25
33.50
6.91
268.60 222.73
30.03 21.77
47.93 34.91
5.33
7.32
49.89
8.77
28.33
0.99
3.41
21.49
1.38
22.00
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
4.00%
3.00
t
5-year Treasury
note yield
1.00
0.00
J FMAM J J A S O N D
2017
Somerset Savings Bank, SLA
2.88%
Bound Brook, NJ
732-560-1700
Metuchen Savings Bank
Metuchen, NJ
Thursday
t
3.00%
732-549-4452
Clinton Savings Bank
Clinton, MA
3.13%
888-744-4272
Provident Bank
Dumont, NJ
3.13%
800-448-7768
1
3 6
month(s)
15%
10
2.25
5
1.50
One year ago
0.75
0
–5
0.00
–10
t
2.00
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
Manasquan Savings Bank
2.88%
Manasquan, NJ
732-292-8400
1 2 3 5 710
years
maturity
30
Euro
s
Yen
WSJ Dollar index
2017
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.25-1.50 1.25-1.50
Prime rate*
4.50
4.50
Libor, 3-month
1.67
1.69
Money market, annual yield
0.34
0.33
Five-year CD, annual yield
1.49
1.48
30-year mortgage, fixed†
3.97
3.92
15-year mortgage, fixed†
3.40
3.36
Jumbo mortgages, $424,100-plus† 4.34
4.34
Five-year adj mortgage (ARM)† 4.04
4.03
New-car loan, 48-month
3.34
3.30
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.50 l
l
3.75
l
1.00
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.50
1.69
0.36
1.50
4.33
3.48
4.87
4.07
3.36
1.25
1.25
1.44
-0.10
-0.03
-0.16
0.02
-0.03
0.68
0.28
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
Corporate Borrowing Rates and Yields
Bond total return index
Close
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1460.452
2.283
2.305
2.313
1.818
2.851 1.687
10-yr Treasury, Ryan ALM 1725.916
DJ Corporate
382.348
Aggregate, Barclays Capital 1943.600
High Yield 100, Merrill Lynch 2862.415
Fixed-Rate MBS, Barclays 1986.760
Muni Master, Merrill
522.053
2.432
3.135
2.730
5.551
2.930
2.182
2.483
3.184
2.770
5.630
2.980
2.270
2.609
3.390
2.790
5.890
3.120
2.318
2.058
2.879
2.380
4.948
2.660
1.736
2.674
6.111
3.860
6.686
2.897
4.721
807.452
5.551
5.575
6.073
5.279
9.294 6.819
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
1.339
4.018
2.317
4.634
1.915
2.592
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
SGLB
DGAZ
CERC
Latest Session
Close Net chg % chg
High
52-Week
Low
% chg
9.04
1.88
2.26
28.59
3.33
-3.01
-0.62
-0.64
-7.22
-0.71
-24.98
-24.80
-22.07
-20.16
-17.57
25.47 3.65
3.99 0.50
9.20 1.33
42.92 13.85
4.25 0.34
96.5
-33.2
50.7
97.2
270.0
3.12
2.55
6.06
4.54
2.23
-0.61
-0.40
-0.95
-0.71
-0.34
-16.35
-13.56
-13.55
-13.52
-13.23
7.14
6.35
12.75
8.20
4.77
1.86
2.10
5.94
1.30
0.99
-10.9
-39.3
...
-34.5
-45.3
52.12 21.76
8.59 1.01
21.61 2.03
5.95 0.40
465.00 19.80
80.7
20.4
434.4
453.7
-6.8
TIK
RETO
FTFT
EKSO
40.25 -6.01 -12.99
3.43 -0.43 -11.14
SIEB
14.00 -1.75 -11.11
DPW
3.69 -0.39 -9.56
WINS 192.00 -19.35
-9.15
NXTD
Ranked by change from 65-day average*
Company
Symbol
Live Ventures
ZK International Group
ETFMG Alt Harvest ETF
Energous Corp.
GAIN Capital Holdings
LIVE
PwrShrs 1-30 Laddrd Treas
Direxion Dly 7-10Y Tr Br
Severn Bancorp
Flex Gl Quality Real Est
Yangtze River Development
PLW
Country/currency
ZKIN
MJX
WATT
GCAP
TYO
SVBI
GQRE
YERR
Volume % chg from Latest Session
(000) 65-day avg Close % chg
4,292
2,707
1,004
43,951
10,564
38344
6940
6406
4071
2494
953
242
114
151
481
2194
1847
1684
1572
1326
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
52-Week
High
Low
50.60
10.87
6.28
33.21
26.28
28.00 9.11
16.00 6.70
33.74 24.13
33.50 6.91
10.02 5.56
32.69 -0.34
14.11 0.28
7.30 1.39
62.84 0.50
9.04 -24.98
33.52 31.40
15.89 13.12
8.08 6.70
64.31 55.52
25.47 3.65
19.97
10.10
32.00
31.57
9.85
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0521 19.1798 20.9
Brazil real
.3019 3.3124 1.8
Canada dollar
.7956 1.2570 –6.5
Chile peso
.001627 614.70 –8.2
Ecuador US dollar
1
1 unch
Mexico peso
.0507 19.7100 –4.9
Uruguay peso
.03464 28.8700 –1.6
Venezuela b. fuerte .096663 10.3453 3.5
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
.7797 1.2825 –7.6
China yuan
.1531 6.5323 –5.9
Hong Kong dollar
.1279 7.8157 0.8
India rupee
.01561 64.070 –5.7
Indonesia rupiah .0000737 13572 0.3
Japan yen
.008860 112.87 –3.5
Kazakhstan tenge .003016 331.61 –0.6
Macau pataca
.1242 8.0524 1.7
Malaysia ringgit
.2460 4.0652 –9.4
New Zealand dollar
.7089 1.4106 –2.3
Pakistan rupee
.00903 110.700 6.1
Philippines peso
.0200 49.884 0.6
Singapore dollar
.7474 1.3379 –7.6
South Korea won .0009344 1070.15 –11.4
Sri Lanka rupee
.0065185 153.41 3.3
Taiwan dollar
.03353 29.824 –8.1
Thailand baht
.03058 32.700 –8.7
Vietnam dong
.00004403 22711 –0.3
Commodities
.04669 21.418 –16.6
.1604 6.2342 –11.8
1.1943 .8373 –11.9
.003853 259.56 –11.8
.009551 104.70 –7.3
.1212 8.2508 –4.6
.2859 3.4974 –16.5
.01738 57.526 –6.1
.1213 8.2453 –9.5
1.0220 .9785 –4.0
.2649 3.7749 7.1
.0358 27.9509 3.2
1.3442 .7439 –8.2
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6524 .3770 –0.04
.0563 17.7670 –2.0
.2881 3.4715 –9.8
3.3118 .3019 –1.2
2.5976 .3850
...
.2744 3.645 0.1
.2666 3.7504 –0.01
.0806 12.4093 –9.4
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.23 –0.36–0.42 –7.21
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Thursday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
U.S.-dollar foreign-exchange rates in late New York trading
s
5-year adjustablerate mortgage
t (ARM)
NYSE Arca
Currencies
Forex Race
3.75%
4.04%
Nasdaq
Total volume*1,296,445,021 144,083,104
Adv. volume* 778,248,106 106,898,882
Decl. volume* 487,784,359 36,919,228
Issues traded
3,076
1,322
Advances
1,753
964
Declines
1,166
344
Unchanged
157
14
New highs
112
116
New lows
27
14
Closing tick
126
56
Closing Arms†
0.94
0.93
Block trades*
5,033
972
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
* Volumes of 100,000 shares or more are rounded to the nearest thousand
notes and bonds
Bankrate.com avg†:
TEUM
Volume Movers
s
U.S. consumer rates
Symbol
-16.5
17.5
415.6
84.4
100.0
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Company
9.11
3.57
2.25
6.91
2.20
28.00
8.09
12.45
33.50
38.86
Most Active Stocks
Company
Total volume* 526,120,192 13,783,741
Adv. volume* 358,398,315 7,027,093
Decl. volume* 152,896,876 6,628,052
Issues traded
3,077
338
Advances
1,934
178
Declines
1,008
149
Unchanged
135
11
New highs
135
3
New lows
24
5
Closing tick
309
30
Closing Arms†
0.88
1.53
Block trades*
5,405
137
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
SPY
Percentage Gainers...
3087.78
397.52
265.73
The Global Dow
DJ Global Index
DJ Global ex U.S.
Interest rate
Last
SPDR S&P 500
108.12
1341.69
16.04
NYSE NYSE Amer.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Americas
Brazil
Canada
Mexico
Chile
Volume, Advancers, Decliners
GAIN Capital Holdings GCAP
Value Line
World
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
Most-active issues in late trading
13.1
14.3
Standard & Poor's
500 Index
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
622.30
4.32
193.04
59.84
2.914
1294.10
1.57
0.20
0.182
5.80
0.70
622.30
532.01
0.82 195.14
59.97
0.34
3.80
6.66
0.45 1346.00
166.50
42.53
2.56
1150.00
% Chg
9.58
YTD
% chg
9.70
0.28
0.07
11.29 11.39
-23.36 -21.75
11.91 12.53
.
THE WALL STREET JOURNAL.
B8 | Friday, December 29, 2017
COMMODITIES
Futures Contracts
Settle
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.2495
3.2955 s
3.2495
3.2860 0.0235
Jan
March
3.2820
3.3220 s
3.2695
3.3085 0.0245
Gold (CMX)-100 troy oz.; $ per troy oz.
Jan
1288.20 1293.70
1288.20 1294.10
5.80
Feb
1292.00 1297.30
1290.50 1297.20
5.80
April
1296.30 1302.00
1295.20 1301.90
5.90
June
1301.00 1306.70
1300.00 1306.50
5.90
Aug
1308.40 1311.10
1305.60 1311.10
6.00
Dec
1318.10 1320.30
1315.20 1320.40
6.30
Palladium (NYM) - 50 troy oz.; $ per troy oz.
...
...
... 1076.20
7.10
Jan
March
1055.30 1064.50 s
1047.15 1063.45
7.10
June
1046.20 1055.00 s
1041.05 1054.65
6.60
Sept
1046.70 1050.00 s t 1046.70 1048.45
7.45
Platinum (NYM)-50 troy oz.; $ per troy oz.
923.20
928.50
921.90
926.90
3.20
Jan
April
927.00
933.20
925.30
931.50
3.50
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.650
16.820
16.650
16.832 0.165
Jan
March
16.745
16.930
16.710
16.923 0.167
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
59.53
59.94
59.44
59.84
0.20
Feb
March
59.58
59.97
59.47
59.87
0.18
April
59.57
59.94
59.47
59.84
0.16
May
59.51
59.83
59.38
59.73
0.13
June
59.40
59.64
59.20
59.54
0.11
Dec
57.50
57.78
57.36
57.67
0.09
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
2.0327
2.0560
2.0327
2.0521 .0119
Jan
Feb
2.0316
2.0540
2.0302
2.0497 .0114
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7876
1.7961
1.7805
1.7930 .0015
Jan
Feb
1.7885
1.7974
1.7831
1.7946 –.0007
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.749
2.945
2.734
2.914
.182
Feb
March
2.714
2.903
2.700
2.878
.179
April
2.649
2.735
2.635
2.722
.087
May
2.651
2.735
2.643
2.716
.073
July
2.731
2.807
2.729
2.777
.051
Oct
2.736
2.807
2.736
2.788
.055
Open
interest
2,856
165,586
March
May
124.00
126.35
124.90
127.20
123.20
125.55
124.80
127.15
.30 126,662
.30 44,873
March
May
14.86
14.76
15.05
14.92
14.86
14.74
15.00
14.87
.07 383,400
.05 158,862
March
May
27.00
26.91
27.00
27.25
26.86
26.88
26.86
27.11
–.08
–.13
March
May
78.74
78.65
79.45 s
79.39 s
78.60
78.59
78.80
78.88
–.15 175,844
–.04 51,533
Jan
March
132.25
132.35
131.15
132.20
136.70
135.85
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
536
332,660
37,409
37,747
13,028
25,504
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
1
35,201
1,494
303
137.50
139.35
152-290 152-290
151-200 151-200
152-130
151-100
152-230
151-180
–7.0 759,049
–8.0
13
March
June
123-305 123-310
123-200 123-200
123-245
123-160
123-270
123-170
–4.5 3,250,127
–4.0
766
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
566
156,462
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
116-115 116-115
116-095 116-097
–2.2 21,921
Dec
March'18 116-040 116-042
116-007 116-022
–2.2 3,088,106
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
107-080 107-082
107-080 107-077
–.2
7,833
Dec
March'18 107-015 107-017
107-005 107-007
–1.0 1,779,226
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.703
98.703
98.700
98.700 –.002 102,537
Dec
Jan'18
98.590
98.595
t 98.590
98.595
… 280,531
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
98.047
98.172
98.000
98.078 –.172 24,838
March
1 Month Libor (CME)-$3,000,000; pts of 100%
98.4500 98.4700
t 98.4500 98.4675 .0100
7,681
Jan
Feb
98.4750 98.4850
98.4750 98.4850 .0100
4,695
Eurodollar (CME)-$1,000,000; pts of 100%
98.3425 98.3475
98.3325 98.3450 .0050 246,975
Jan
March
98.2350 98.2450
98.2300 98.2350 .0100 1,420,671
June
98.0650 98.0750
98.0600 98.0650 .0050 1,329,594
Dec
97.8500 97.8600
97.8350 97.8400 –.0100 1,425,856
481,286
368,670
167,514
127,436
250,305
261,988
13,566
150,965
14,995
143,870
381,980
294,227
168,708
129,930
54,688
84,151
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Jan
March
.8838
.8871
.8884
.8911
.8838
.8862
.8867
.8894
.0016
2,352
.0016 231,355
Jan
March
.7922
.7914
.7959
.7970
.7909
.7911
.7962
.7967
.0046
1,157
.0044 111,265
Jan
March
1.3417
1.3448
1.3459
1.3491
1.3417
1.3433
1.3452
1.3479
.0039
2,920
.0039 190,818
Canadian Dollar (CME)-CAD 100,000; $ per CAD
350.00
367.00
352.00
369.00
March
May
242.50
250.00
244.75
250.00
241.75
248.75
243.00
248.75
Jan
March
955.00
966.75
955.75
967.75
943.25
955.00
945.75 –9.75 38,487
956.75 –10.75 342,015
Swiss Franc (CME)-CHF 125,000; $ per CHF
March
1.0211
1.0289
1.0191
1.0278
Jan
March
313.90
318.10
314.50
318.70
311.60
315.80
311.80
316.10
Jan
Feb
March
June
.7770
.7785
.7769
.7800
.7810
.7802
.7809
.7801
.7770
.7785
.7768
.7779
.7797
.7796
.7796
.7795
March
June
.05006
.04923
.05024
.04961
Jan
March
1.1913
1.1960
1.1969
1.2014
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Jan
March
33.05
33.26
33.12
33.32
32.32
32.52
Jan
March
1180.50
1209.50
1180.50
1210.50
1154.50
1180.00
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Wheat (CBT)-5,000 bu.; cents per bu.
–1.75 832,084
–1.50 241,453
.25
.25
1165.50 –13.50
1194.50 –13.50
428.75
441.50
425.25
438.00
427.75
440.75
–.25 296,098
–.50 85,886
March
May
425.00
439.25
427.00 s
440.50
423.50
436.75
426.75
440.25
1.25 192,122
1.25 57,655
March
May
621.00
628.75
623.00
630.25
618.00
625.50
619.00
626.75
–2.25
–2.00
39,721
12,934
Jan
March
145.075
141.900
146.650
143.225
144.100
140.850
145.600
142.225
.425
.500
10,717
22,829
Wheat (MPLS)-5,000 bu.; cents per bu.
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Dec
Feb'18
122.150
121.375
125.175
122.600
122.050
120.650
124.550
122.250
71.100
75.350
71.850
75.800
70.700
74.900
71.550
75.700
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Feb
April
Euro (CME)-€125,000; $ per €
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
449.10
449.10
445.30
447.10
Jan
March
441.80
445.20
439.60
444.10
Milk (CME)-200,000 lbs., cents per lb.
15.42
15.44
15.40
15.42
Dec
Jan'18
14.02
14.12
14.02
14.07
Cocoa (ICE-US)-10 metric tons; $ per ton.
1,876
1,927
1,876
1,911
March
May
1,873
1,922
1,869
1,909
87,883
65,277
–3.50
–.30
1,869
3,795
…
.07
3,712
3,604
.04982
.04882
.04999
… 187,680
.04921 .00002
145
1.1911
1.1953
1.1963
1.2008
.0037
7,757
.0038 476,601
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
March
June
24791
24828
March
June
2686.90
...
March
June
March
24840
24852 s
1490.70
1488.30
U.S. Dollar Index (ICE-US)-$1,000 x index
92.69
92.19
March
June
45 144,574
48 49,318
92.69
92.19
1489.00
.60
92.30
91.98
–.31
–.31
92.28
91.98
85
45,518
1,032
Source: SIX Financial Information
Expected Previous
change
week
Current
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
Natural gas (bcf)
Year
ago
4-week
avg
1,233 1,316
1,238
1,188
10,157
...
Current
Expected Previous
change
week
1,224,103
...
431,882
228,374
24,346
52
24,294
204,029
-3,700
...
600
...
...
...
436
228
25
0
25
203
486
227
27
0
27
200
440
226
25
0
25
201
413
233
38
0
38
195
7,993
388
9
0
9
379
...
...
...
...
...
...
3,332
...
3
3
4
3
...
...
Year
ago
39,875
129,935
9,642
120,294
31,418
271,954
...
-500
...
...
...
...
Net crude, petroleum
products, incl. SPR
1,887,495
40
129
10
119
31
275
...
42
152
13
138
42
261
1,896 2,011
40
129
10
119
31
278
1,901
40
143
18
125
38
230
1,883
Current
Total petroleum
product
20,775
...
21,111
Year
ago
20,159
4-week
avg
3,360
5-year
avg
9,485
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
1,807
4,326
138
1,533
3,485
...
...
...
...
...
...
9,426
2,108
3,926
562
1,324
3,765
9,278
1,703
3,967
102
1,360
3,750
9,224
1,865
4,092
360
1,383
3,653
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EFA
SCZ
EEM
10.84
99.27
56.90
72.47
28.11
101.44
83.19
75.81
109.19
104.53
122.06
66.00
56.62
62.99
269.79
190.73
77.35
61.38
109.22
98.71
72.85
52.90
12.44
121.40
87.13
115.95
106.49
72.16
70.26
64.42
46.90
0.46 –14.0
0.27 22.0
–0.16 10.0
0.15 –3.8
0.39 20.9
0.25 17.1
0.14 20.7
0.20 21.8
0.9
...
–0.03 –0.4
–0.06 –0.4
0.11 23.1
0.69 33.4
0.35 24.8
0.19 19.9
0.33 15.4
0.40 12.5
0.23 19.7
1.1
–0.07
0.23 11.4
19.0
0.15
0.15 17.0
0.48 12.3
3.6
–0.07
0.7
–0.05
5.2
0.03
0.1
–0.07
0.22 22.0
0.06 21.7
0.28 29.3
0.69 34.0
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
411.81
6.7
12-22 year
2.477 2.213 2.872
399.90
7.8
22-plus year
2.813 2.716 3.449
Triple-B-rated
High Yield Bonds Merrill Lynch
7.5
High Yield Constrained 5.775 5.373 6.189
Global Government J.P. Morgan†
Triple-C-rated
10.634 9.584 11.395
544.00
1.3
Global Government 1.450 1.300 1.560
2862.42
6.7
High Yield 100
5.551 4.948 5.890
755.75
0.3
Canada
2.070 1.570 2.190
378.89
7.6
Global High Yield Constrained 5.234 4.934 5.813
371.32
0.6
EMU§
1.109 0.933 1.363
306.29
6.7
Europe High Yield Constrained 2.434 1.897 3.279
711.85
0.8
France
0.840 0.690 1.210
Germany
0.510 0.210 0.620
Japan
0.400 0.340 0.460
Netherlands
0.610 0.360 0.760
U.K.
1.520 1.340 1.790
9.2
420.01
507.72
U.S Agency Bloomberg Barclays
1637.00
2.0
U.S Agency
2.220 1.690 2.240
288.49
1461.67
1.0
10-20 years
2.090 1.490 2.100
560.99
3383.23
8.2
20-plus years
2.950 2.730 3.410
929.29
2.980 2.610 3.050
807.45
5.0 Yankee
-1.3
0.1
-0.9
1.7
9.3
Emerging Markets ** 5.551 5.279 6.073
315
380
102
278
265
894
...
26
157
68
90
16
896
168
228
46
182
211
963
2,762 3,382
3,221
94
168
60
108
223
790
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.875
2.250
0.000
0.750
0.000
0.500
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
U.S. 2 1.899 s
10 2.433 s
l
1.891
2.411
1.750
2.328
1.258
2.510
2.013 t
2.677 t
l
2.018
1.751
1.917
11.3
12.7
l
2.703
2.505
2.862
24.4
29.2
35.2
France 2 -0.474 s
10 0.765 s
l
-0.518
-0.581
-241.0
-196.6
l
0.718
0.677
-0.708 -237.4
0.681
-166.8
-169.3
-182.9
Germany 2 -0.614 s
10 0.426 s
l
-0.649
-0.690
-254.0
-208.1
l
0.382
0.342
-0.823 -251.3
0.195 -200.7
-202.9
-231.5
Italy 2 -0.156 s
10 1.946 s
l
-0.191
-0.284
-0.195
-205.5
-208.3
-145.3
l
1.911
1.781
1.833
-48.6
-50.0
-67.7
Japan 2 -0.135 s
10 0.057 s
l
-0.139
-0.171
-0.161
-203.4
-203.0
-141.9
l
0.055
0.040
0.061 -237.6
-235.6
-244.9
Spain 2 -0.382 s
10 1.500 s
l
-0.407
-0.359
-229.8
-155.2
l
1.462
1.461
-0.294 -228.1
1.353 -93.3
-94.9
-115.7
0.438 s
1.199 s
l
0.417
0.467
0.050
l
1.176
1.255
1.151
1.750
U.K. 2
4.250
10
-146.1
-123.4
65.9
-147.4
-120.8
-123.5
-135.9
Source: Tullett Prebon
in that same company’s share price.
J A S O N D
Closing Chg YTD
Symbol Price (%) (%)
267.87
94.73
64.29
52.65
23.20
165.59
133.57
161.88
102.27
44.85
45.69
59.12
70.47
54.65
141.30
155.25
85.88
83.69
87.32
123.08
155.58
112.09
82.95
246.14
79.07
79.29
148.64
81.44
54.33
56.70
137.76
74.38
106.67
64.21
59.27
31.84
2.750
Year ago
Investment-grade spreads that tightened the most…
3250
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
0.100
Month ago
l
Corporate Debt
1250
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
0.100
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
5,502
250
J F M A M J
2017
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
0.050
Five-year average
for each week
25.7
22.4
21.9
2.3
29.0
19.9
11.4
22.3
14.0
6.6
19.5
17.0
11.3
19.2
26.0
13.0
2.3
0.5
–0.7
0.6
6.3
24.6
0.2
32.3
14.9
–1.5
0.6
12.1
23.0
19.6
20.2
25.6
15.1
2.193 1.744 2.394
3.560 3.340 3.830
6.9
...
2250
–0.03
–0.23
0.19
–0.03
0.19
0.21
0.27
0.39
0.39
0.36
0.25
0.38
0.44
0.38
0.18
0.21
–0.13
0.04
0.01
–0.12
–0.09
0.31
0.03
0.12
0.36
0.04
–0.08
0.51
0.24
0.22
0.20
0.26
0.37
5.2 7-12 year
...
ETF
43.48
59.82
107.79
110.68
135.31
149.22
124.77
188.20
153.73
126.74
158.86
209.28
89.49
217.23
153.47
114.57
38.08
113.79
83.83
105.40
126.66
121.34
101.56
156.73
47.77
23.02
36.66
122.85
34.06
64.79
64.03
248.13
347.26
365.30
10
Exchange-Traded Portfolios | WSJ.com/ETFresearch
ETF
2.730 2.470 2.870
Australia 2
t
Closing Chg YTD
Symbol Price (%) (%)
2.182 1.736 2.318
4.5 Double-A-rated
2.750
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
ETF
4.6 Muni Master
2.750
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Thursday, December 28, 2017
Closing Chg YTD
Symbol Price (%) (%)
522.05
7,570
582
91
0
91
491
4250
Largest 100 exchange-traded funds, latest session
Freddie Mac (FHLMC) 2.950 2.680 3.130
4.030 3.990 4.680
7,598
462
15
0
15
447
...
2.930 2.660 3.120
11.8 Long term
7,834 8,167
487 434
9
9
0
0
9
9
478 425
...
...
...
...
...
...
8,343
1,521
2,960
357
...
...
1.7
Fannie mae (FNMA) 2.940 2.670 3.120
9,574
t
motor gasoline
Kerosene-type
1951.93
2.6
9,816
Natural gas,
lower 48 states
Finished
Mortgage-Backed
Ginnie Mae (GNMA) 2.880 2.630 3.090
2.5
10,315 9,876
Billions of cubic feet; weekly totals
20,576 18,308
2.3
1795.33
5-year
avg
Natural gas storage
Weekly Demand, 000s barrels per day
Expected Previous
change
week
132
239
21
218
187
1,043
1986.76
1165.59
569.56
2.050
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
2.730 2.380 2.790
U.S. Aggregate
2.900 2.530 2.990
4-week
avg
...
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
** EMBI Global Index
Imports, 000s barrels per day
5-year
avg
YTD total
return (%)
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
Inventories, imports and demand for the week ended December 22. Current figures are in thousands of barrels
or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas
import Natural-gas import and demand data are available monthly only.
Inventories, 000s barrels
Total
return
close
3.260 3.030 3.500
3933.05
2462.75
Macro & Market Economics
Watching the Gauges: U.S. Supply and Demand
33.4400
0.2300
0.3400
0.3163
0.2650
n.a.
Intermediate
3.8
4.70
23,847
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
U.S. Corporate
6.3
2618.79
1914.00
3.90
Index
3.4
2797.54
1905.10
1549.60
Yield (%)
Latest Low High
U.S. Corporate Indexes Bloomberg Barclays
1914.80
1543.00
YTD total
return (%)
1943.60
1909.10
1550.40
16.8500
20.2200
16.8400
21.0500
£12.4600
Broad Market Bloomberg Barclays
417.60
1489.80
March
Total
return
close
0.25 3,023,788
0.25 24,126
1546.10
4.85
113
3.2300
97.3
486.0
n.a.
n.a.
n.a.
2.7050
385.00
25.00
8.0725
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
2685.75
2687.50
Mini Russell 1000 (ICE-US)-$100 x index
Grains and Feeds
185.18
170.77
0.8742
2.2075
144.00
152.75
67.00
n.a.
n.a.
n.a.
1.5450
15.25
n.a.
61.01
n.a.
0.8410
n.a.
n.a.
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
2683.00
2685.00
Mini Russell 2000 (ICE-US)-$100 x index
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
0.6200
0.7805
*88.10
64.500
n.a.
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
309.30
9.1400
n.a.
4.3300
4.0975
5.2788
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 12/27
Source: WSJ Market Data Group
2689.00
2690.50
–7.8 281,887
–8.8
747
1296.85
1394.11
1291.00
1433.01
*1285.40
*1279.40
1347.06
1360.01
1360.01
1569.68
1272.60
1360.01
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
2684.00
2686.50
6446.3
6464.8
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
Silver, troy oz.
723.09
6442.3
6461.3
LBMA Platinum Price PM
*919.0
Platinum,Engelhard industrial
928.0
Platinum,Engelhard fabricated
1028.0
Palladium,Engelhard industrial
1062.0
Palladium,Engelhard fabricated
1162.0
Aluminum, LME, $ per metric ton
*2199.5
Copper,Comex spot
3.2860
Iron Ore, 62% Fe CFR China-s
72.8
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
647
Fibers and Textiles
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
51,377
561
6477.5
6495.3
Thursday
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Other metals
Metals
0.30
0.40
6452.3
6474.0
0.9781
1.0775
2.970
2.950
15.660
3.390
2.870
2.460
2.930
59.850
12.100
Gold, per troy oz
2685.70
2687.60
91,516
Thursday
16.7400
12634
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
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
2683.50
2685.70
Mini Nasdaq 100 (CME)-$20 x index
March
Thursday
Energy
2689.00
2690.20
Mini S&P Midcap 400 (CME)-$100 x index
March
June
Thursday, December 28, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
24797
24810
Mini S&P 500 (CME)-$50 x index
9 146,049
7
178
Cash Prices
24784
24806
S&P 500 Index (CME)-$250 x index
2.525
925
1.250 120,202
.525
.425
t
82,357
.0020
1,427
.0020
521
.0020 116,777
.0020
316
Mexican Peso (CME)-MXN 500,000; $ per MXN
1,209
8,222
427.50
441.25
.0066
Australian Dollar (CME)-AUD 100,000; $ per AUD
–.57 12,948
–.56 210,889
March
May
Wheat (KC)-5,000 bu.; cents per bu.
British Pound (CME)-£62,500; $ per £
4,687
1,529
–2.40 13,307
–2.40 181,785
32.50
32.71
623
7,272
March
June
353.50
370.50
Soybean Meal (CBT)-100 tons; $ per ton.
3.55
3.50
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
3,571
77,900
353.00
370.00
Soybeans (CBT)-5,000 bu.; cents per bu.
3,489
2,161
Interest Rate Futures
March
July
Oats (CBT)-5,000 bu.; cents per bu.
Open
interest
Chg
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
Contract
High hilo
Low
Open
WSJ.com/commodities
0.21
0.28
0.17
0.55
0.17
0.09
0.39
0.31
0.12
0.31
0.48
0.24
0.41
0.28
0.18
0.14
0.17
–0.05
–0.07
0.17
0.38
0.36
0.53
0.19
–0.03
0.01
0.34
–0.06
–0.15
0.18
0.22
0.30
0.26
–0.47
–0.37
–0.22
19.8
10.7
32.9
8.4
10.9
36.3
10.4
21.6
20.1
22.7
27.7
23.3
18.7
23.7
26.7
22.5
13.3
0.7
1.9
20.2
18.2
15.3
0.5
19.9
–0.5
–0.1
15.3
0.8
0.1
23.6
19.5
21.9
14.7
11.9
19.6
13.5
Issuer
Symbol Coupon (%)
Maturity
Toronto–Dominion Bank
Commonwealth Bank of Australia
Macy's Retail Holdings
CVS Health
TD
CBAAU
M
CVS
2.500 Dec. 14, ’20
2.400
Nov. 2, ’20
6.375 March 15, ’37
2.125
June 1, ’21
11
35
345
63
Oracle
PNC Bank NA
Verizon Communications
Anheuser–Busch Inbev Finance
ORCL
PNC
VZ
ABIBB
4.000
2.550
3.850
3.300
87
34
168
54
July 15, ’46
Dec. 9, ’21
Nov. 1, ’42
Feb. 1, ’23
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
–5
39
n.a.
345
n.a.
58.40
...
…
73.05
0.74
...
…
0.40
–5
–5
–5
–4
96
n.a.
178
59
47.52
…
53.43
...
0.30
…
0.28
...
n.a.
122
54
n.a.
52.65
75.08
17.36
…
0.15
0.25
–0.12
…
n.a.
84
99
n.a.
34.75
53.43
…
20.37
...
0.28
…
0.54
–30
–13
–13
…And spreads that widened the most
Morgan Stanley
Citigroup
General Electric
Teva Pharma III
MS
C
GE
TEVA
5.450 July 15, ’49
5.875 March 27, ’49
2.700
Oct. 9, ’22
2.200 July 21, ’21
91
130
51
n.a.
Viacom
Verizon Communications
HSBC Holdings
Interpublic
VIA
VZ
HSBC
IPG
3.250 March 15, ’23
3.500
Nov. 1, ’24
4.300 March 8, ’26
4.000 March 15, ’22
161
77
100
89
31
28
17
12
10
8
4
4
High-yield issues with the biggest price increases…
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Hot Topic
Chesapeake Energy
Southwestern Energy
First Data
HOTT
CHK
SWN
FDC
9.250 June 15, ’21
8.000 June 15, ’27
4.100 March 15, ’22
5.375 Aug. 15, ’23
95.250
97.000
98.875
104.340
1.25
1.00
0.84
Tenet Healthcare
Frontier Communications
HCA
PetSmart
THC
FTR
HCA
PETM
8.125
April 1, ’22
7.125 March 15, ’19
5.875 March 15, ’22
8.875
June 1, ’25
103.030
96.250
107.625
60.750
0.78
0.75
0.75
0.75
4.25
Last week
Stock Performance
Close ($)
% chg
68.000
95.000
97.875
103.870
...
4.04
5.76
16.72
...
4.12
5.49
0.54
100.750
96.625
107.750
61.500
15.21
6.83
88.31
...
1.88
0.29
0.48
...
95.875
63.750
100.625
101.250
...
...
...
...
89.000
n.a.
74.000
108.250
...
...
6.83
72.31
…And with the biggest price decreases
Wind Tre Spa
Fresh Market
Park Aerospace Holdings
Parsley Energy
WINTRE
TFM
AVOL
PARSLY
TeamHealth Holdings
Intesa Sanpaolo Spa
Frontier Communications
AGCO
TMH
ISPIM
FTR
AGCO
5.000
9.750
5.250
5.375
Jan. 20, ’26
May 1, ’23
Aug. 15, ’22
Jan. 15, ’25
94.781
62.625
99.500
101.000
6.375
Feb. 1, ’25
7.700 Sept. 17, ’49
11.000 Sept. 15, ’25
5.875
Dec. 1, ’21
89.250
108.625
73.470
107.750
–0.84
–0.63
–0.50
–0.50
–0.50
–0.33
–0.28
–0.28
...
...
...
...
...
...
0.29
–0.75
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | B9
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE American and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq BX
(formerly Boston), Chicago Stock Exchange,
Cboe, NYSE National and Nasdaq ISE.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Net
Sym Close Chg
Net Stock
Sym Close Chg s BHPBilliton BHP 46.38 0.61
s BHPBilliton BBL 40.53 0.58
BOK Fin
BOKF 93.49 1.19
s BP
BP 41.87 0.15
s ABB
ABB 26.81 0.07
BRF
BRFS 11.11
...
AECOM
ACM 37.38
...
BT Group BT 18.02 -0.01
AES
AES 10.76 0.09
BWX Tech BWXT 60.90 0.33
Aflac
AFL 88.23 0.52
Baidu
BIDU 234.74 -2.97
AGNC Invt AGNC 20.34 0.25
BakerHughes BHGE 31.40 -0.63
Ansys
ANSS 147.65 0.99
Ball
BLL
37.92 0.36
ASML
ASML 174.20 0.16
BancoBilbaoViz BBVA 8.52 -0.01
AT&T
T
39.18 0.29
s
BancodeChile
BCH
98.14 3.45
s AbbottLabs ABT 57.46 -0.01
AbbVie
ABBV 97.79 -0.30 BancoMacro BMA 116.00 -0.59
BcoSantChile
BSAC
31.24 0.28
Abiomed
ABMD 190.55 0.13
Accenture ACN 153.57 0.25 BancoSantander SAN 6.55 -0.02
ActivisionBliz ATVI 63.40 0.06 BanColombia CIB 40.04 0.21
AcuityBrands AYI 177.84 0.61 BankofAmerica BAC 29.80 0.07
s
Adient
ADNT 79.54 0.52 BankofMontreal BMO 79.94 0.61
AdobeSystems ADBE 175.55 0.19 BankNY Mellon BK 54.12 0.28
AdvanceAuto AAP 99.71 -0.06 BkNovaScotia BNS 65.08 0.44
AdvMicroDevices AMD 10.55 0.02 BankofOzarks OZRK 48.81 0.56
BCS 10.93 0.11
AdvSemiEngg ASX 6.38 0.04 Barclays
BCR 331.24 -1.95
Aegon
AEG 6.30 0.08 Bard CR
BarrickGold
ABX 14.45 -0.04
AerCap
AER 52.99 0.19
Aetna
AET 181.23 0.38 BaxterIntl BAX 64.90 0.12
s AffiliatedMgrs AMG 206.51 1.84 BectonDicknsn BDX 214.32 -3.00
WRB 71.77 0.71
AgilentTechs A
67.45 0.15 Berkley
AgnicoEagle AEM 46.33 0.38 BerkHathwy A BRK.A 2992101090.01
BerkHathwy
B
BRK.B 199.56 0.87
s Agrium
AGU 114.59 0.31
s AirProducts APD 164.62 0.95 BerryGlobal BERY 58.83 0.14
s
BestBuy
BBY
68.42 0.06
AkamaiTech AKAM 65.43 0.24
AlaskaAir ALK 74.57 0.20 Bio-RadLab A BIO 239.31 -1.05
Bio-RadLab
B
BIO.B
238.25-17.00
Albemarle ALB 128.45 0.02
BIIB 320.33 0.26
s Alcoa
AA 54.14 2.30 Biogen
AlexandriaRlEst ARE 130.67 0.34 BioMarinPharm BMRN 90.48 -0.24
AlexionPharm ALXN 120.26 0.46 Bioverativ BIVV 53.98 -0.25
Alibaba
BABA 172.30 -0.67 BlackKnight BKI 44.70 0.45
AlignTech ALGN 226.48 0.03 BlackBerry BB 11.35 0.13
Alkermes ALKS 55.39 0.82 BlackRock BLK 517.98 3.66
Alleghany Y
596.60 4.52 Blackstone BX 32.27 -0.24
Allegion
ALLE 79.56 -0.44 BlueBuffaloPet BUFF 32.68 0.37
Allergan
AGN 164.62 -0.95 bluebirdbio BLUE 179.70 -0.20
BA 296.35 0.73
AllianceData ADS 251.35 0.93 Boeing
AlliantEnergy LNT 42.66 0.24 BorgWarner BWA 52.10 0.53
AllisonTransm ALSN 43.57 0.11 BostonProps BXP 128.84 0.55
Allstate
ALL 104.91 0.31 BostonSci BSX 25.19 -0.01
BAK 26.01 -0.57
AllyFinancial ALLY 29.41 0.19 Braskem
AlnylamPharm ALNY 129.88 1.32 BrightHorizons BFAM 94.28 0.10
Alphabet A GOOGL 1055.95 -4.25 BrighthouseFin BHF 59.16 0.09
Alphabet C GOOG 1048.14 -1.23 Bristol-Myers BMY 61.77 0.09
Altaba
AABA 69.82 -0.24 BritishAmTob BTI 66.53 0.13
AlticeUSA ATUS 20.91 0.24 Broadcom AVGO 260.42 1.30
Altria
MO 71.27 -1.16 BroadridgeFinl BR 90.88 0.05
AlumofChina ACH 18.58 0.52 BrookfieldMgt BAM 43.61 0.25
Amazon.com AMZN 1186.10 3.84 BrookfieldInfr BIP 44.88 -0.84
Ambev
ABEV 6.42 0.05 Brown&Brown BRO 51.78 0.22
Amdocs
DOX 65.55 0.12 s Brown-Forman A BF.A 68.15 0.71
Amerco
UHAL 379.18 -0.55 s Brown-Forman B BF.B 68.78 0.18
Ameren
AEE 59.15 0.45 BuckeyePtrs BPL 48.79 1.32
BG 67.15 0.29
AmericaMovil A AMOV 16.99 0.11 Bunge
AmericaMovil AMX 17.15 0.13 s BurlingtonStrs BURL 121.65 -0.32
CA
CA 33.50
...
AmerAirlines AAL 52.46 0.06
CBD 23.56 0.45
AEP
AEP 73.65 0.41 CBD Pao
AmerExpress AXP 99.70 0.57 CBRE Group CBG 43.95 0.19
CBS 59.26 -0.03
AmericanFin AFG 109.06 0.20 CBS B
CBS.A 59.65 0.23
AmerHomes4Rent AMH 21.89 0.12 CBS A
CDK
Global
CDK 71.97 0.72
AIG
AIG 60.00 0.46
CDW 69.91 0.31
AmerTowerREIT AMT 142.91 1.35 CDW
AmerWaterWorks AWK 91.62 0.78 s CF Industries CF 42.61 -0.46
Ameriprise AMP 171.61 0.67 CGI Group GIB 54.49 0.27
AmerisourceBrgn ABC 92.59 -0.01 CH Robinson CHRW 89.46 -0.04
Ametek
AME 72.87 0.20 CIT Group CIT 49.84 0.36
Amgen
AMGN 175.25 -0.96 CME Group CME 146.31 0.36
Amphenol APH 88.60 0.51 CMS Energy CMS 47.39 0.18
CNA 52.93 0.16
AnadarkoPetrol APC 53.76 -0.02 CNA Fin
CEO 144.51 0.35
AnalogDevices ADI 89.38 0.28 s CNOOC
Andeavor ANDV 115.36 0.36 CPFLEnergia CPL 11.44 -0.01
CRH 36.01 0.10
AndeavorLog ANDX 46.53 0.41 CRH
CSX 55.00 -0.14
AB InBev BUD 111.26 -0.89 CSX
AnnalyCap NLY 12.02 0.22 CVS Health CVS 73.05 0.29
COG 28.54 0.41
AnteroResources AR 19.57 0.54 CabotOil
Anthem
ANTM 227.04 1.80 CadenceDesign CDNS 42.29 0.04
Aon
AON 134.52 0.60 CaesarsEnt CZR 12.55 0.05
Apache
APA 42.87 -0.02 CalAtlantic CAA 56.98 -0.02
ApartmtInv AIV 43.59 0.23 CamdenProperty CPT 91.74 0.27
ApolloGlbMgmt APO 33.29 -0.13 CampbellSoup CPB 48.46 -0.12
CM 97.33 0.99
Apple
AAPL 171.08 0.48 s CIBC
ApplMaterials AMAT 51.72 0.04 CanNtlRlwy CNI 82.67 0.38
Aptiv
APTV 85.56 0.83 CanNaturalRes CNQ 35.89 0.37
AquaAmerica WTR 39.33 0.25 CanPacRlwy CP 182.92 -0.09
CAJ 37.43 -0.21
Aramark
ARMK 43.19 0.26 Canon
ArcelorMittal MT 32.75 -0.03 CapitalOne COF 100.30 0.55
ArchCapital ACGL 90.85 0.37 CardinalHealth CAH 62.14 -0.16
CSL 113.47 0.45
ArcherDaniels ADM 40.27 0.03 Carlisle
CG 22.95 -0.15
Arconic
ARNC 27.62 0.28 Carlyle
KMX 64.81 -0.10
AristaNetworks ANET 240.64 1.14 CarMax
CCL 66.48 -0.28
ArrowElec ARW 80.50 0.62 Carnival
Carnival
CUK
66.36 -0.10
AstraZeneca AZN 34.11 0.39
Athene
ATH 51.82 0.03 s Caterpillar CAT 158.42 0.90
CAVM 84.70 -0.30
Atlassian
TEAM 46.04 -0.10 Cavium
AtmosEnergy ATO 85.59 0.60 CboeGlobalMkts CBOE 124.85 0.09
Autodesk ADSK 105.07 0.49 Celanese A CE 108.24 1.34
CELG 104.75 0.29
Autohome ATHM 64.46 -0.19 Celgene
CX
7.49
...
Autoliv
ALV 129.32 0.78 Cemex
ADP
ADP 117.31 0.05 CenovusEnergy CVE 9.21 0.25
CNC 102.90 -0.12
AutoZone AZO 718.38 11.38 Centene
Avalonbay AVB 178.58 1.43 CenterPointEner CNP 28.36 0.21
Avangrid
AGR 50.95 0.25 CentraisElBras EBR 5.77 0.22
AveryDennison AVY 115.57 0.43 CenturyLink CTL 17.12 0.05
CERN 67.93 0.32
AxaltaCoating AXTA 32.33 0.23 Cerner
BB&T
BBT 50.12 0.14 CharterComms CHTR 338.03 4.78
BCE
BCE 47.79 0.32 CheckPoint CHKP 103.68 0.37
Thursday, December 28, 2017
Stock
A B C
Net
Sym Close Chg
Stock
Chemours CC 50.76
CheniereEnergy LNG 54.26
CheniereEnerPtrs CQP 29.63
s CheniereEnHldgs CQH 28.54
Chevron
CVX 125.58
ChinaEastrnAir CEA 34.43
ChinaLifeIns LFC 15.57
ChinaLodging HTHT 140.69
ChinaMobile CHL 49.97
ChinaPetrol SNP 73.30
ChinaSoAirlines ZNH 50.59
ChinaTelecom CHA 47.18
ChinaUnicom CHU 13.52
Chipotle
CMG 294.82
Chubb
CB 146.16
ChunghwaTel CHT 35.39
Church&Dwight CHD 50.18
Cigna
CI 205.24
CimarexEnergy XEC 122.81
CincinnatiFin CINF 75.08
Cintas
CTAS 156.62
CiscoSystems CSCO 38.59
Citigroup
C
75.08
CitizensFin CFG 42.44
s CitrixSystems CTXS 88.63
Clorox
CLX 149.00
Coca-Cola KO 45.72
Coca-Cola Euro CCE 39.28
Coca-Cola Femsa KOF 67.86
Cognex
CGNX 61.74
CognizantTech CTSH 71.39
Coherent
COHR 286.20
ColgatePalm CL 75.14
t ColonyNorthStar CLNS 11.54
Comcast A CMCSA 40.29
Comerica
CMA 87.29
CommerceBcshrs CBSH 56.52
CommScope COMM 38.26
SABESP
SBS 10.44
ConagraBrands CAG 38.05
ConchoRscs CXO 151.33
ConocoPhillips COP 55.18
ConEd
ED 85.09
s ConstBrands B STZ.B 228.17
s ConstBrands A STZ 227.98
ContinentalRscs CLR 52.92
Cooper
COO 220.18
Copart
CPRT 43.20
Corning
GLW 32.30
CoStar
CSGP 295.60
Costco
COST 186.62
Coty
COTY 20.07
Credicorp
BAP 207.25
CreditAcceptance CACC 325.95
CreditSuisse CS 17.86
CrownCastle CCI 109.82
CrownHoldings CCK 56.27
Ctrip.com CTRP 44.75
Cullen/Frost CFR 95.52
Cummins
CMI 177.20
0.88
0.30
0.37
0.50
0.03
-0.33
0.07
0.10
-0.05
-0.57
-0.47
-0.04
...
-0.60
0.70
0.09
0.12
2.53
1.30
0.53
0.60
0.03
0.19
0.08
0.19
-0.29
-0.21
-0.16
-0.19
0.31
0.19
0.43
-0.23
0.17
-0.12
0.17
0.17
0.10
0.04
-0.02
0.30
-0.41
0.43
4.46
2.00
-0.37
-1.01
-0.09
-0.05
1.53
0.32
0.22
0.66
0.30
0.07
0.39
0.43
0.11
0.25
0.96
D E F
DISH Network DISH 47.85
DTE Energy DTE 109.61
DXC Tech DXC 94.97
Danaher
DHR 93.56
Darden
DRI 97.50
s DaVita
DVA 72.36
Deere
DE 157.70
DellTechs DVMT 81.03
DeltaAir
DAL 56.35
DentsplySirona XRAY 66.43
DeutscheBank DB 19.10
DevonEnergy DVN 41.76
s Diageo
DEO 144.76
DiamondbkEner FANG 125.52
DigitalRealty DLR 114.03
s DiscoverFinSvcs DFS 77.50
DiscovComm C DISCK 21.28
DiscovComm A DISCA 22.55
Disney
DIS 107.77
DolbyLab
DLB 61.93
DollarGeneral DG 92.58
DollarTree DLTR 108.07
DominionEner D
81.07
Domino's
DPZ 189.98
Donaldson DCI 49.06
DouglasEmmett DEI 41.09
s Dover
DOV 101.44
DowDuPont DWDP 71.51
DrPepperSnap DPS 96.89
DrReddy'sLab RDY 37.21
DukeEnergy DUK 83.99
DukeRealty DRE 27.30
Dunkin'
DNKN 65.32
ENI
E
33.40
EOG Rscs EOG 108.45
EQT
EQT 57.26
E*TRADE ETFC 49.68
EXACT Sci EXAS 54.63
EastWestBncp EWBC 61.32
EastmanChem EMN 93.42
Eaton
ETN 78.16
EatonVance EV 56.77
eBay
EBAY 37.92
Ecolab
ECL 134.53
s Ecopetrol
EC 14.41
EdisonInt
EIX 63.94
EdwardsLife EW 114.55
ElectronicArts EA 105.31
s EmersonElec EMR 69.98
0.18
0.87
0.24
0.14
0.09
0.05
-0.28
-0.23
0.23
0.49
0.04
-0.08
0.89
2.33
1.53
0.54
-0.46
-0.50
0.13
0.08
-0.04
0.58
0.41
-0.59
0.27
0.26
0.30
0.07
-0.13
0.12
0.01
0.18
-0.19
...
0.09
1.93
0.19
1.51
0.58
0.89
0.74
0.40
0.31
0.43
0.20
0.14
1.39
0.08
0.23
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Data provided by
Top 250 mutual-funds listings based on total net assets for Nasdaq-published share
classes. NAV is net asset value. Percentage performance figures are total returns,
assuming reinvestment of all distributions and after subtracting annual expenses.
Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change
in NAV from previous trading day. YTD%RET is year-to-date return. f-Previous day’s
quotation. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. tFootnotes p and r apply. NA-Not available due to incomplete price, performance or
cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NSFund didn’t exist at start of period.
Fund
Net YTD
Thursday, December 28, 2017
Net YTD
NAV Chg %Ret Fund
American Century Inv
43.71 +0.11 32.8
Ultra
American Funds Cl A
AmcpA p
31.66 +0.09 22.7
AMutlA p 40.94 +0.07 18.1
27.21 +0.03 15.7
BalA p
12.88 -0.01 3.1
BondA p
62.78 +0.09 14.2
CapIBA p
CapWGrA 51.15 +0.16 24.8
EupacA p
56.15 +0.20 30.6
62.44 +0.16 23.8
FdInvA p
49.80 +0.18 26.8
GwthA p
10.36
... 6.5
HI TrA p
40.54 +0.08 20.2
ICAA p
23.37 +0.03 13.4
IncoA p
N PerA p
43.27 +0.13 29.2
44.87 +0.17 35.1
NEcoA p
NwWrldA 66.84 +0.22 32.4
55.94 +0.19 27.2
SmCpA p
13.03 +0.01 5.4
TxExA p
45.83 +0.11 20.7
WshA p
Baird Funds
AggBdInst 10.86 -0.01 4.1
... 4.6
CorBdInst 11.21
BlackRock Funds A
... 13.4
GlblAlloc p 19.71
BlackRock Funds Inst
EqtyDivd
22.78
... 16.8
GlblAlloc
19.83
... 13.7
StratIncOpptyIns 9.96 +0.01 4.8
Bridge Builder Trust
NA
... NA
CoreBond
Dimensional Fds
5GlbFxdInc 10.87
... 2.0
EmgMktVa 31.12 +0.22 33.3
EmMktCorEq 23.13 +0.19 36.0
IntlCoreEq 14.55 +0.04 28.1
20.52 +0.06 26.3
IntlVal
21.24 +0.08 30.1
IntSmCo
IntSmVa
22.94 +0.10 27.8
US CoreEq1 22.91 +0.05 21.6
US CoreEq2 21.69 +0.05 19.7
36.22 +0.12 12.4
US Small
US SmCpVal 38.22 +0.13 8.1
US TgdVal 25.08 +0.08 10.4
USLgVa
39.36 +0.10 19.7
Dodge & Cox
Balanced 107.33 +0.16 12.9
13.75
... 4.3
Income
46.26 +0.07 23.8
Intl Stk
204.70 +0.43 19.0
Stock
DoubleLine Funds
TotRetBdI
NA
... NA
Edgewood Growth Instituti
EdgewoodGrInst 29.73 +0.09 35.6
NAV Chg %Ret Fund
2.41
10.32 +0.02
CpInc r
39.94 +0.11
DivIntl
GroCo
180.21 +0.25
GrowCoK 180.18 +0.26
InvGB
7.91 -0.01
11.23 -0.01
InvGrBd
54.66 +0.17
LowP r
LowPriStkK r 54.61 +0.18
105.20 +0.21
MagIn
110.67 +0.11
OTC
23.49 +0.03
Puritn
SrsEmrgMkt 21.33 +0.13
SrsGroCoRetail 16.77 +0.02
SrsIntlGrw 16.13 +0.02
10.68
...
SrsIntlVal
TotalBond 10.63 -0.01
First Eagle Funds
GlbA
59.11 +0.08
FPA Funds
34.77 +0.03
FPACres
FrankTemp/Frank Adv
...
IncomeAdv 2.36
FrankTemp/Franklin A
7.48 +0.01
CA TF A p
IncomeA p
2.38
...
RisDv A p 61.36 +0.07
FrankTemp/Franklin C
11.8
26.4
38.0
38.1
3.8
4.2
21.0
21.1
27.3
39.6
19.1
39.9
38.7
30.0
20.3
4.1
13.6
10.6
8.6
5.9
8.4
20.7
Lord Abbett F
ShtDurIncm
4.25
...
Metropolitan West
NA
...
TotRetBd
NA
...
TotRetBdI
NA
...
TRBdPlan
MFS Funds Class I
ValueI
40.95 +0.11
MFS Funds Instl
25.39 +0.03
IntlEq
Mutual Series
31.88 +0.07
GlbDiscA
Oakmark Funds Invest
EqtyInc r
32.28 +0.06
Oakmark
84.79 +0.30
OakmrkInt 28.48 +0.03
Old Westbury Fds
14.48 +0.03
LrgCpStr
Oppenheimer Y
DevMktY
42.75 +0.21
IntGrowY
43.59 +0.02
Parnassus Fds
42.87 +0.10
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
TotRt
10.25
...
PIMCO Funds A
2.4
17.9
2.6
37.3
23.1
NA
Net
Sym Close Chg
Stock
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
J K L
G H I
R S
O P Q
New Highs and Lows | WSJ.com/newhighs
Highs
M N
TxMIn r
NA
14.42 +0.05
41.61 +0.10
WdsrllAdml 67.39 +0.16
WellsIAdml 65.32 +0.04
WelltnAdml 72.73 +0.11
WndsrAdml 79.40 +0.26
VANGUARD FDS
DivdGro
26.63 +0.04
HlthCare r 206.47 +0.53
INSTTRF2020 22.56 -0.42
INSTTRF2025 22.90 -0.42
INSTTRF2030 23.16 -0.41
INSTTRF2035 23.42 -0.41
INSTTRF2040 23.68 -0.40
INSTTRF2045 23.86 -0.40
39.90 +0.12
IntlVal
19.98 -0.19
LifeCon
33.75 -0.32
LifeGro
27.18 -0.33
LifeMod
27.04 +0.02
PrmcpCor
31.43 +0.09
SelValu r
STAR
26.85 -1.00
STIGrade
10.63
...
TgtRe2015 15.34 -0.83
TgtRe2020 31.42 -0.81
TgtRe2025 18.53 -0.42
TgtRe2030 33.69 -0.62
TgtRe2035 20.73 -0.40
TgtRe2040 35.86 -0.61
TgtRe2045 22.56 -0.38
TgtRe2050 36.30 -0.60
13.56 -0.17
TgtRetInc
TotIntBdIxInv 10.85 -0.02
26.97 +0.02
WellsI
42.12 +0.07
Welltn
37.98 +0.09
WndsrII
VANGUARD INDEX FDS
500
248.09 +0.50
ExtndIstPl 210.54 +0.80
SmValAdml 57.37 +0.23
TotBd2
10.71
...
TotIntl
18.23 +0.07
67.06 +0.16
TotSt
VANGUARD INSTL FDS
34.82 +0.04
BalInst
DevMktsIndInst 14.44 +0.05
DevMktsInxInst 22.57 +0.08
85.32 +0.33
ExtndInst
GrwthInst 72.75 +0.12
10.40
...
InPrSeIn
244.71 +0.49
InstIdx
244.73 +0.49
InstPlus
InstTStPlus 59.79 +0.14
MidCpInst 42.57 +0.16
MidCpIstPl 209.95 +0.81
SmCapInst 71.21 +0.25
STIGradeInst 10.63
...
TotBdInst
10.74 -0.01
...
TotBdInst2 10.71
TotBdInstPl 10.74 -0.01
TotIntBdIdxInst 32.56 -0.04
TotIntlInstIdx r121.95 +0.46
TotItlInstPlId r121.98 +0.47
67.09 +0.15
TotStInst
41.61 +0.10
ValueInst
Western Asset
...
CorePlusBdI NA
... NA ValAdml
Price Funds
... 8.2
StraValDivIS 6.14 +0.01 15.0 FrankTemp/Temp A
GlBond A p 11.89 -0.05
Fidelity
500IdxInst 93.93 +0.19 22.4 Growth A p 27.29 +0.03
500IdxInstPrem 93.93 +0.19 22.4 FrankTemp/Temp Adv
500IdxPrem 93.93 +0.19 22.4 GlBondAdv p 11.85 -0.04
ExtMktIdxPrem r 62.45 +0.24 18.9 Harbor Funds
IntlIdxPrem r 43.14 +0.07 25.2 CapApInst 69.81 +0.16
67.61 -0.10
SAIUSLgCpIndxFd 14.36 +0.03 22.4 IntlInst r
TMktIdxF r 76.78 +0.18 21.8 Harding Loevner
NA
...
TMktIdxPrem 76.78 +0.18 21.8 IntlEq
USBdIdxInstPrem 11.58 -0.01 3.4 Invesco Funds A
11.00 +0.01
EqIncA
Fidelity Advisor I
NwInsghtI 32.21 +0.09 29.0 John Hancock Class 1
15.22 +0.03
LSBalncd
Fidelity Freedom
16.12 +0.04
16.59 -0.47 15.8 LSGwth
FF2020
14.42 -0.37 17.0 John Hancock Instl
FF2025
18.09 -0.51 20.0 DispValMCI 23.42 +0.11
FF2030
Freedom2020 K 16.56 -0.50 NS JPMorgan Funds
NA
...
Freedom2025 K 14.40 -0.39 NS MdCpVal L
Freedom2030 K 18.06 -0.55 NS JPMorgan R Class
NA
...
CoreBond
Freedom2035 K 15.25 -0.42 NS
Freedom2040 K 10.71 -0.31 NS Lazard Instl
EmgMktEq 19.90 +0.07
Fidelity Invest
23.80 +0.03 16.8 Loomis Sayles Fds
Balanc
13.76 +0.02
88.36 +0.14 37.0 LSBondI
BluCh
123.19 +0.33 33.0 Lord Abbett A
Contra
...
123.12 +0.33 33.2 ShtDurIncmA p 4.25
ContraK
Net
Sym Close Chg
OMC 73.40 -0.08 RobertHalf RHI 56.03 0.60
-0.02 IAC/InterActive IAC 123.25 -1.22 Marsh&McLen MMC 81.97 0.28 Omnicom
ON 21.13 -0.03 Rockwell
ROK 197.53 1.54
9.75 0.11 MartinMarietta MLM 217.46 -0.74 ON Semi
0.31 ICICI Bank IBN
IDXX 158.79 2.10 MarvellTech MRVL 21.89 -0.16 s OpenText OTEX 35.52 2.51 RockwellCollins COL 135.70 0.39
0.19 IdexxLab
ORCL 47.52 0.14 RogersComm B RCI 50.93 0.25
0.21 IHSMarkit INFO 45.29 0.12 Masco
MAS 44.12 0.24 Oracle
ORAN 17.39 0.02 Rollins
ROL 46.58 -0.22
0.38 ING Groep ING 18.51 0.07 Mastercard MA 151.77 0.37 Orange
IVZ 36.77 0.23 MatchGroup MTCH 31.34 -0.25 OrbitalATK OA 132.00 -0.09 RoperTech ROP 260.60 -0.01
0.19 Invesco
IX
84.76 -0.25 RossStores ROST 80.61 -0.12
-0.01 IPG Photonics IPGP 215.25 0.64 MaximIntProducts MXIM 52.83 0.39 Orix
OSK 90.97 -0.20 s RoyalBkCanada RY 81.65 0.81
IQV 98.31 -0.23 McCormick MKC 102.24 0.63 Oshkosh
0.66 IQVIA
0.10 IRSA Prop IRCP 56.50 0.54 McDonalds MCD 173.10 0.43 s OwensCorning OC 92.75 0.83 RoyalBkScotland RBS 7.57 0.04
PCG 44.81 0.13 RoyalCaribbean RCL 120.88 -0.33
-0.05 IcahnEnterprises IEP 52.80 0.08 McKesson MCK 157.73 -0.29 PG&E
PHI 30.11 0.57 s RoyalDutchA RDS.A 66.50 0.27
ICLR 113.37 0.18 Medtronic MDT 81.34 0.04 PLDT
3.42 Icon
PNC
Fin
PNC 145.67 0.69 s RoyalDutchB RDS.B 67.98 0.21
IEX 132.50 0.28 s MelcoResorts MLCO 29.19 -0.04
0.55 IDEX
PKX 78.81 0.19 Ryanair
RYAAY 104.67 1.33
0.17 IllinoisToolWks ITW 166.71 0.36 MercadoLibre MELI 315.57 -3.28 POSCO
PPG 117.17 0.68 SAP
SAP 112.40 -0.70
ILMN 217.52 2.06 Merck
-0.05 Illumina
MRK 56.60 0.26 PPG Ind
PPL 30.91 0.08 S&P Global SPGI 169.85 0.45
1.43 ImperialOil IMO 31.10 0.36 MetLife
MET 50.87 0.12 PPL
PTC 61.24 0.90 SBA Comm SBAC 163.00 1.74
INCY 95.38 -1.13 MettlerToledo MTD 622.60 6.67 PTC
0.14 Incyte
PVH 136.91 0.24 SEI Investments SEIC 72.07 0.25
INFY 16.16 -0.02 MichaelKors KORS 63.55 -0.04 PVH
2.59 Infosys
PCAR 71.44 0.60 Sina
SINA 102.60 -1.46
89.23 0.12 MicroFocus MFGP 33.19 0.27 Paccar
0.42 Ingersoll-Rand IR
PackagingCpAm
PKG 120.92 0.38 SINOPEC
SHI 57.64 -0.04
INGR 139.90 0.54 MicrochipTech MCHP 88.61 0.21
0.12 Ingredion
INTC 46.22 0.11 MicronTech MU 41.81 -0.67 PacWestBancorp PACW 50.13 0.03 SK Telecom SKM 27.87 -0.60
0.31 Intel
0.93 InteractiveBrkrs IBKR 60.02 0.25 Microsemi MSCC 52.19 0.45 PaloAltoNtwks PANW 146.87 0.11 SLGreenRealty SLG 100.93 0.27
ICE 70.52 0.25 Microsoft MSFT 85.72 0.01 ParkHotels PK 28.91 0.31 SS&C Tech SSNC 40.29 -0.14
0.15 ICE
SIVB 237.71 2.82
0.11 InterContinentl IHG 63.48 0.12 MidAmApt MAA 100.56 0.49 ParkerHannifin PH 199.21 0.30 SVB Fin
IBM 154.04 0.91 Middleby
0.35 IBM
MIDD 134.62 0.36 ParsleyEnergy PE 29.86 0.14 SageTherap SAGE 166.19 2.03
PAYX 68.34 -0.06 Salesforce.com CRM 102.79 0.14
0.12 IntlFlavors IFF 153.77 1.54 MitsubishiUFJ MTU 7.26 -0.09 Paychex
PYPL 74.17 -0.42 Sanofi
SNY 43.06 -0.05
IP
57.83 0.18 MizuhoFin MFG 3.66 -0.01 PayPal
0.33 IntlPaper
PSO 9.79 0.04 SantanderCons SC 18.60 0.12
0.36 Interpublic IPG 20.37 0.11 MobileTeleSys MBT 10.15 0.12 Pearson
SSL 33.63 0.24
INTU 158.58 -0.15 MohawkInds MHK 276.14 2.70 PembinaPipeline PBA 36.18 0.34 s Sasol
0.30 Intuit
PNR 70.14 0.74 Schlumberger SLB 67.46 -0.46
0.27 IntuitiveSurgical ISRG 368.87 0.78 MolsonCoors B TAP 82.03 0.35 Pentair
SCHW 52.04 0.19
0.43 InvitatHomes INVH 23.60 0.21 MolsonCoors A TAP.A 84.00 -0.03 People'sUtdFin PBCT 18.92 0.14 SchwabC
PEP 119.35 0.05 s ScottsMiracleGro SMG 104.96 1.89
0.32 IonisPharma IONS 50.72 -0.16 Mondelez MDLZ 43.06 0.03 PepsiCo
-1.71 IronMountain IRM 37.98 0.53 Monsanto MON 116.27 -0.09 PerkinElmer PKI 73.42 0.33 ScrippsNetworks SNI 85.48 0.23
PRGO 87.27 -1.24 Seagate
STX 42.02 -0.09
4.06 -0.05 MonsterBev MNST 62.92 -1.31 Perrigo
-0.05 IsraelChemicals ICL
-0.03 ItauUnibanco ITUB 12.93 0.11 Moody's
MCO 147.82 1.19 PetroChina PTR 70.22 -0.43 SealedAir SEE 49.45 0.24
0.16
MorganStanley MS 52.65 0.08 PetroleoBrasil PBR 10.22 0.12 SeattleGenetics SGEN 55.04 0.36
-0.15
Mosaic
MOS 25.56 0.07 PetroleoBrasilA PBR.A 9.76 0.09 SemicondctrMfg SMI 8.47 0.57
Pfizer
PFE 36.37 0.04 SempraEnergy SRE 107.08 0.08
0.28 JD.com
JD 41.63 -0.66 MotorolaSol MSI 90.57 -0.23 PhilipMorris PM 104.81 0.10
SensataTech ST 51.18 0.30
0.14 JPMorganChase JPM 107.79 0.57 Mylan
MYL 41.86 -0.14
PSX 101.96 -0.10 ServiceCorp SCI 37.42 0.08
-0.27 JackHenry JKHY 117.29 0.37 NRG Energy NRG 28.01 0.31 Phillips66
-0.08 JacobsEngg JEC 66.57 0.29 NTTDoCoMo DCM 23.78 0.07 PilgrimPride PPC 31.61 0.30 ServiceMaster SERV 51.61 0.05
PinnacleFoods PF 59.79 0.08 ServiceNow NOW 130.69 0.43
0.09 s JamesHardie JHX 17.66 0.14 NVR
NVR 3525.73 63.73
PinnacleWest PNW 85.20 0.58 ShawComm B SJR 22.71 -0.04
0.54 JanusHenderson JHG 38.24 0.14 NXP Semi NXPI 116.98 0.29
PioneerNatRscs PXD 172.58 0.14 SherwinWilliams SHW 413.07 2.87
-0.49 JazzPharma JAZZ 136.57 1.54 Nasdaq
NDAQ 76.67 0.33
PlainsAllAmPipe PAA 20.78 -0.11 ShinhanFin SHG 46.31 -0.25
0.13 JetBlue
JBLU 22.54 0.04 NationalGrid NGG 58.60 0.37 PlainsGP
PAGP 22.05 -0.01 Shire
SHPG 156.49 0.02
0.50 J&J
JNJ 140.56 -0.01 NatlOilwell NOV 35.49 0.21 PolarisIndustries PII 126.59 0.75
Shopify
SHOP 102.39 -2.11
1.95 JohnsonControls JCI 38.18 0.26 NatlRetailProp NNN 43.13 0.34
s Potash
POT 20.54 0.06 SignatureBank SBNY 137.47 0.23
0.27 JonesLang JLL 150.63 0.31 s NektarTherap NKTR 60.50 1.46
Praxair
PX 155.29 1.10 SimonProperty SPG 171.15 0.38
-0.17 JuniperNetworks JNPR 28.87 -0.01 NetApp
NTAP 55.80 -0.35 Priceline
PCLN 1764.09 6.21
SIRI 5.38 -0.01
0.31 KAR Auction KAR 50.72 0.09 Netease
NTES 349.95-11.68 PrincipalFin PFG 71.39 0.32 SiriusXM
-0.18 KB Fin
NFLX 192.71 6.47 Procter&Gamble PG 92.07 -0.03 SkechersUSA SKX 38.52 0.08
KB 58.35 -0.45 Netflix
Skyworks
SWKS 96.54 0.72
0.08 KKR
KKR 21.13 0.06 Neurocrine NBIX 75.39 1.65 Progressive PGR 56.51 0.15
SmithAO
AOS 61.61 -0.27
-0.05 KLA Tencor KLAC 107.85 0.57 NewOrientalEduc EDU 92.65 -0.18
Prologis
PLD 64.76 0.48 Smith&Nephew SNN 35.27 0.13
-0.05 KT
KT 15.55 -0.23 NY CmntyBcp NYCB 13.13 0.03 PrudentialFin PRU 115.20 -0.13
Smucker
SJM 124.89 0.10
0.32 KSCitySouthern KSU 105.61 -1.13 NewellBrands NWL 31.03 0.30
Prudential PUK 50.61 0.32 Snap
SNAP 14.85 0.01
0.13 Kellogg
K
68.03 -0.26 NewfieldExpln NFX 31.98 0.16 PublicServiceEnt PEG 51.34 0.33
SnapOn
SNA 175.88 0.47
0.04 KeyCorp
KEY 20.35 0.11 NewmontMin NEM 37.51 -0.09 PublicStorage PSA 209.24 -0.04
0.69 KeysightTechs KEYS 42.18 0.64 NewsCorp B NWS 16.65
... PulteGroup PHM 33.72 0.20 SOQUIMICH SQM 59.06 0.25
Sony
SNE 45.29 0.03
0.10 KilroyRealty KRC 74.35 0.24 NewsCorp A NWSA 16.33 0.08
Qiagen
QGEN 31.10 -0.28 Southern
SO 48.28 0.23
0.58 KimberlyClark KMB 120.23 -1.65 NextEraEnergy NEE 156.35 1.06 Qorvo
QRVO 67.36 0.10 s SoCopper SCCO 47.63 0.54
0.04 KimcoRealty KIM 18.37 0.12 NielsenHoldings NLSN 36.00 0.14 Qualcomm QCOM 64.38 -0.16
SouthwestAir
LUV 65.87 -0.09
NKE 62.95
... s QuantaServices PWR 39.33 -0.15
KinderMorgan KMI 18.31 0.19 Nike
NI
25.56 0.32 QuestDiag DGX 99.13 -0.07 SpectraEnerPtrs SEP 41.13 -0.15
Knight-Swift KNX 43.80 -0.28 NiSource
SpectrumBrands
SPB 111.94 -1.66
KSS 54.68 -0.61 NobleEnergy NBL 29.33 0.12
GGP
GGP 23.42 -0.05 Kohl's
SpiritAeroSys SPR 87.23 0.01
NOK 4.71 -0.02
Gallagher AJG 63.63 0.41 KoninklijkePhil PHG 37.95 -0.05 Nokia
Splunk
SPLK 82.29 -0.30
Gaming&Leisure GLPI 36.98 0.04 KoreaElcPwr KEP 17.66 -0.56 NomuraHoldings NMR 5.82 -0.06 RELX
S
5.91 0.07
RENX 23.06 0.09 Sprint
NDSN 146.84 1.31
Gap
GPS 34.44 -0.05 KraftHeinz KHC 77.92 -0.06 Nordson
SQ 35.13 -0.62
RELX 23.62 0.03 Square
KR 27.65 -0.06 Nordstrom JWN 47.71 -0.22 RELX
GardnerDenver GDI 33.97 -0.14 Kroger
StanleyBlackDck
SWK
170.03
1.35
RPM
RPM
52.65
0.39
KYO 65.83 -0.29 NorfolkSouthern NSC 145.31 -0.60
Garmin
GRMN 59.77 0.31 Kyocera
RSP Permian RSPP 40.64 0.28 Starbucks SBUX 57.81 0.54
Gartner
IT 123.89 -0.08 LATAMAirlines LTM 13.93 0.11 NorthernTrust NTRS 100.32 1.64 RalphLauren RL 102.61 -0.20 StateStreet STT 98.23 0.52
LB 61.02 -0.23 NorthropGrum NOC 308.29 2.13
Gazit-Globe GZT 10.61 0.33 L Brands
STO 21.41 0.06
RandgoldRscs GOLD 97.54 0.04 s Statoil
GeneralDynamics GD 203.86 1.14 LG Display LPL 13.79 -0.10 t NorwegCruise NCLH 53.61 -0.39 RaymondJames RJF 89.83 0.18 s SteelDynamics STLD 43.82 0.79
NVS 84.25 0.41
LINE
LN 41.37 0.32 Novartis
t GeneralElec GE 17.36 -0.02
Steris
STE 88.27 -0.06
Raytheon
RTN
188.92
1.01
LKQ 41.19 0.32 s NovoNordisk NVO 53.73 0.16
GeneralMills GIS 59.55 -0.63 LKQ
57.12 0.40 STMicroelec STM 21.90 -0.14
NUE 64.34 0.11 RealtyIncome O
LLL 199.05 0.88 Nucor
GeneralMotors GM 41.38 0.07 L3 Tech
Stryker
SYK 155.62 0.47
RedHat
RHT
121.13
-0.09
NVDA 197.40 0.23
Genpact
G
32.16 -0.11 LabCpAm LH 160.85 0.10 NVIDIA
RegencyCtrs REG 69.42 0.40 SumitomoMits SMFG 8.68 -0.01
Gentex
GNTX 21.06 0.06 LamResearch LRCX 185.54 0.17
RegenPharm REGN 382.82 -1.27 SunComms SUI 92.38 0.36
GenuineParts GPC 95.48 -0.19 LamarAdv LAMR 74.24 -0.15
RegionsFin RF 17.38 0.08 SunLifeFinancial SLF 41.02 0.11
Gerdau
GGB 3.74 0.04 LambWeston LW 55.86 0.40 OGE Energy OGE 33.00 0.25 ReinsGrp
RGA 156.65 0.48 SuncorEnergy SU 36.71 0.47
Gildan
GIL 32.47 0.01 LasVegasSands LVS 69.98 -0.86 ONEOK
OKE 53.49 0.32 RelianceSteel RS 86.87 0.27 SunTrustBanks STI 65.44 0.23
LAZ 52.09 0.52
GileadSciences GILD 72.48 -0.50 Lazard
OReillyAuto ORLY 242.36 0.05 s RepublicSvcs RSG 67.41 0.48 Symantec SYMC 28.48 0.03
LEA 179.59 1.10
GSK
GSK 35.50 -0.06 Lear
OccidentalPetrol OXY 73.70 0.38 ResMed
RMD 86.26 0.50 s SynchronyFin SYF 38.97 0.37
GlobalPayments GPN 100.32 -0.01 Leggett&Platt LEG 47.53 -0.02 OldDomFreight ODFL 132.79 -0.82 RestaurantBrands QSR 61.87 0.74 Syngenta SYT 92.80 -0.03
LDOS 64.82 0.18
GoDaddy
GDDY 50.48 0.46 Leidos
Olin
OLN 35.62 0.40 s RioTinto
RIO 52.76 1.01 Synopsys SNPS 85.65 -0.06
LEN 63.82 -0.10
Goldcorp
GG 12.71 0.03 Lennar A
LEN.B 51.53 0.31
GoldmanSachs GS 256.50 0.55 Lennar B
LennoxIntl
LII 210.66 2.62
Goodyear GT 32.75 0.16
LeucadiaNatl
LUK 26.65 0.22
t Graco
GGG 45.63 0.46
Grainger
GWW 237.96 0.96 LibertyBroadbandA LBRDA 84.98 1.63
LibertyBroadbandC
LBRDK 85.06 1.52
GreatPlainsEner GXP 32.25 0.22
Grifols
GRFS 22.79 0.13 LibertyGlobal C LBTYK 33.69 0.22 The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
LibertyGlobal
A
LBTYA 35.75 0.35
GrubHub
GRUB 72.19 -0.95
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
GpoAvalAcc AVAL 8.55 -0.16 LibertyLiLAC A LILA 20.46 -0.25 in the latest session. % CHG-Daily percentage change from the previous trading session.
GpoFinGalicia GGAL 65.61 -0.39 LibertyLiLAC C LILAK 20.26 -0.23
GpFinSantMex BSMX 7.08 0.06 LibertyQVC A QVCA 25.41 0.07
Thursday, December 28, 2017
GrupoTelevisa TV 18.71 -0.05 LibertyVenturesA LVNTA 55.01 0.93
52-Wk %
52-Wk %
52-Wk %
HCA Healthcare HCA 88.31 0.42 LibertyFormOne C FWONK 34.70 0.39
Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg
HCP
HCP 26.03 0.16 LibertyFormOne A FWONA 33.11 0.52
LibertyBraves
A
BATRA
22.25
-0.49
CanadaGoose GOOS 31.95 2.0 H&E Equipment HEES 40.47 0.7
HDFC Bank HDB 101.03 0.75
97.41 1.0 HFF
48.60 2.1
CIBC
CM
HF
HD Supply HDS 40.22 0.79 LibertyBraves C BATRK 22.34 -0.60
22.35 3.0
CapSouthwstNts CSWCL 31.14 -1.0 HeritageCrystal HCCI
HP
HPQ 21.15 -0.12 LibertySirius C LSXMK 39.82 0.13
26.91 0.3
ABB
ABB
80.54 0.4
CasellaWaste CWST 22.75 1.3 Hilton
HLT
HSBC
HSBC 51.52 0.04 LibertySirius A LSXMA 39.80 -0.05 AbbottLabs
57.69
...
ABT
158.65 0.6 HoeghLNG PfdA HMLPpA 26.66 1.3
Caterpillar
CAT
Halliburton HAL 48.57 -0.25 LibertyProperty LPT 43.35 0.14 Ablynx
ABLX 24.83 0.9
LLY 85.05 -0.09
4.25 -17.6 Hovnanian
3.14 5.8
Cerecor
CERC
HOV
Hanesbrands HBI 21.03 -0.07 EliLilly
AcceleronPharma XLRN 43.49 0.3
28.76 1.8 HutchisonChina HCM
38.77 6.6
HarleyDavidson HOG 51.57 0.29 LincolnElectric LECO 91.86 0.35 AffiliatedMgrs AMG 206.75 0.9 CheniereEnHldgs CQH
73.96 1.0
CitrixSystems CTXS 88.98 0.2 HyattHotels
H
Harris
HRS 143.22
... LincolnNational LNC 77.35 0.15 Agrium
AGU 116.95 0.3 ConstBrands B
STZ.B 228.17 2.0 Immunomedics IMMU 16.47 3.6
HartfordFinl HIG 56.56 0.28 LionsGate A LGF.A 33.45 -0.20 AirLease
48.45 0.2
AL
29.68 3.2
ConstBrands A STZ 228.98 0.9 InnovativeIndProp IIPR
Hasbro
HAS 91.52 -0.15 LionsGate B LGF.B 31.36 -0.27 AirProducts
APD 164.78 0.6 ContinentalBldg CBPX 28.55 0.2 InnovativeIndPfdA IIPRpA 28.80 8.1
LiveNationEnt
LYV
42.61 0.21
HealthcareAmer HTA 30.06 0.02
54.20 4.4 DMC Global
AA
LloydsBanking
LYG
3.72 0.03 Alcoa
4.86 8.5
BOOM 26.15 5.0 IntrepidPotash IPI
Heico A
HEI.A 78.75 0.05
AltraIndlMotion AIMC 50.70 0.2 DTE EnergyDeb77 DTW 25.63 0.1 JMP Nts2027 JMPD 25.39 -0.2
Heico
HEI 93.70 -0.48 LockheedMartin LMT 322.10 2.66 AmeriWt
AMRHW 0.96 18.1 DaqoNewEnergy DQ
62.73 6.0 JamesHardie
17.69 0.8
JHX
Loews
L
50.14 0.14
Helm&Payne HP 64.82 -0.15
AmpioPharm AMPE 4.21 15.7 DasekeWt
DSKEW 2.08 -0.5 JPMUSMinimumVol JMIN 25.80 3.3
HenrySchein HSIC 70.56 0.10 LogitechIntl LOGI 33.90 0.12 AnaptysBio
ANAB 102.63 -0.5 DaVita
72.77 0.1 KB Home
32.35 1.4
DVA
KBH
LOGM 114.85 0.25
Herbalife
HLF 68.49 -1.51 LogMeIn
s Lowe's
LOW 92.86 0.75 ApellisPharm APLS 20.65 5.0 DeckersOutdoor DECK 80.95 0.2 KayneAnAcqn KAAC 10.01 -0.3
Hershey
HSY 114.36 -0.22
APPN 33.78 10.8 Diageo
21.68 -1.7
DEO 145.11 0.6 KenonHoldings KEN
s lululemon LULU 79.61 0.33 Appian
Hess
HES 48.36 0.22
25.49 0.9 DiscoverFinSvcs DFS
APTI
77.54 0.7 KimcoRealtyPfdM KIMpM 25.06 0.7
LyondellBasell LYB 111.16 1.13 Apptio
HewlettPackard HPE 14.61 -0.06
Aradigm
ARDM 7.09 16.3 Dover
9.80 ...
DOV 101.85 0.3 KindredBiosci KIN
s Hilton
HLT 80.45 0.30
ArchCoal
ARCH 93.52 1.7 DriveShackPfdC DSpC 25.70 0.9 KirklandLakeGold KL
15.35 0.7
HollyFrontier HFC 51.50 -0.13
1.70 ... EchoGlobalLog ECHO 29.00 -1.0 LGI Homes
ArQule
ARQL
77.67 2.0
LGIH
Hologic
HOLX 43.30 0.07 M&T Bank MTB 172.29 0.72 AveXis
AVXS 115.17 3.4 Ecopetrol
14.41 1.4 Leaf
EC
LFGR 10.15 1.5
HomeDepot HD 189.78 -0.41 MGM Resorts MGM 33.63 -0.08 AxoGen
AXGN 28.90 0.5 EmersonElec
92.94 0.8
70.00 0.3 Lowe's
EMR
LOW
HondaMotor HMC 34.24 -0.08 MPLX
46.44 1.3 EnantaPharma ENTA 59.82 0.3 lululemon
BHP
MPLX 35.60 0.05 BHPBilliton
LULU 80.10 0.4
40.56 1.5 EnelAmericas ENIA
Honeywell HON 154.13 0.18 MSCI
BBL
MSCI 126.38 0.91 BHPBilliton
11.11 1.9 MBFinPfdC
MBFIO 26.38 0.4
BMCH 25.55 0.8 Energous
HormelFoods HRL 36.54 -0.05 Macerich
MAC 66.01 0.13 BMC Stock
WATT 33.50 33.2 MVC CapNts22 MVCD 25.83 1.0
DR Horton DHI 51.34 0.32 Macy's
M
25.72 0.08 BP Midstream BPMP 20.38 2.8 EsperionTherap ESPR 68.50 2.8 Marriott
MAR 136.64 0.2
41.95 0.4 Euronav
BP
HostHotels HST 20.12 0.22 MagellanMid MMP 70.54 0.93 BP
9.25 1.1 MelcoResorts MLCO 29.60 -0.1
EURN
11.70 1.3 FedRealtyInvPfdC FRTpC 25.48 0.9 MellanoxTech MLNX 65.90 0.2
HuanengPower HNP 24.99 0.15 MagnaIntl MGA 57.18 0.17 BRT Apartments BRT
98.31 3.6 FirstBancshares FBMS 34.70 1.6 MeridianBancorp EBSB 21.30 1.7
Hubbell
HUBB 135.99 0.11 Manpower MAN 127.12 0.83 BancodeChile BCH
Humana
HUM 249.01 1.26 ManulifeFin MFC 21.00 0.17 BankofMontreal BMO 79.99 0.8 FleetCorTech FLT 194.00 1.0 Methanex
MEOH 61.45 -0.1
68.72 0.1 Floor&Decor
BBY
49.85 1.3 MillerHerman MLHR 39.75 1.8
JBHunt
JBHT 115.24 -0.23 MarathonOil MRO 17.07 0.06 BestBuy
FND
9.70 ... FortressTransport FTAI
90.73 1.3
20.06 0.2 NICE
NICE
HuntingtonBcshs HBAN 14.74 0.15 MarathonPetrol MPC 66.40 -0.02 BlackRidgeAcqn BRAC
17.85 3.6 ForumMerger FMCI
4.90 0.2
10.67 0.3 NanoVibronix NAOV
HuntingIngalls HII 239.45 1.86 Markel
MKL 1127.00 -6.54 BluegreenVac BXG
3.48 4.9
NHLD
FSTR 26.85 2.5 NatlHoldings
Huntsman HUN 33.42 0.08 MarketAxess MKTX 201.81 0.81 BobEvansFarms BOBE 79.70 0.1 FosterLB
17.68
-0.5
BootBarn
BOOT
40.58
2.0
19.30
3.1
NationalVision
FreeportMcM
EYE
FCX
s HyattHotels H
MAR 136.57 0.32
73.88 0.71 s Marriott
BostonOmaha BOMN 35.49 -0.7 FreseniusMed FMS
52.96 0.1 NektarTherap NKTR 61.88 2.5
Bottomline
EPAY 36.47 0.6 GAIN Capital
GCAP 10.02 26.3 NexaResources NEXA 19.89 2.2
68.98 0.3 GasLog
Brown-Forman B BF.B
53.85 0.3
NVO
GLOG 22.35 2.1 NovoNordisk
Net YTD
Net YTD Brown-Forman A BF.A 68.15 1.1 Gener8Maritime GNRT 6.68 3.1 NuSTAR PfdC NSpC 25.87 0.9
1.97 7.9
OHRP
Fund
NAV Chg %Ret Fund
NAV Chg %Ret BurlingtonStrs BURL 122.93 -0.3 GlobusMedical GMED 42.00 0.5 OhrPharm
CBTX
CBTX 30.21 2.4 GolarLNG PfdA GMLPP 25.95 0.4 OpenText
OTEX 35.80 7.6
... 2.1 CF Industries CF
NA
... NA STIGradeAdml 10.63
IncomeFd
43.42 -1.1 GolarLNG
92.85 0.9
GLNG 30.20 -0.4 OwensCorning OC
PIMCO Funds D
TotBdAdml 10.74 -0.01 3.4 CNOOC
CEO 144.79 0.2 GrayTelevision A GTN.A 14.35 2.5 OxfordIndustries OXM
76.47 0.1
NA
... NA TotIntBdIdxAdm 21.70 -0.03 2.4 CSP
IncomeFd
14.90 8.7 Greenbrier
CSPI
35.74 -0.6
54.45 0.9 PBF Energy
PBF
GBX
TotIntlAdmIdx r 30.50 +0.12 27.5 CadenceBancorp CADE 27.16 1.7 GpoSupervielle SUPV 30.60 -1.6 PSBusParksPfdY PSBpY 25.10 0.2
PIMCO Funds Instl
84.70
7.0
CalavoGrowers
70.11 1.7
GuangshenRail
PatrickIndustries
33.35
4.4
CVGW
GSH
PATK
NA
... NA TotStAdml 67.08 +0.16 21.8
IncomeFd
PIMCO Funds P
Net YTD
Stock
EnbridgeEnPtrs EEP 13.81
Enbridge
ENB 39.21
Encana
ECA 13.32
s EnelAmericas ENIA 11.07
EnelGenChile EOCC 26.88
EnergyTransferEq ETE 17.19
EnergyTransfer ETP 18.02
Entergy
ETR 81.16
EnterpriseProd EPD 26.48
Equifax
EFX 119.73
Equinix
EQIX 455.11
EquityLife ELS 88.96
EquityResdntl EQR 64.25
Ericsson
ERIC 6.54
EssexProp ESS 240.91
EsteeLauder EL 127.89
EverestRe RE 222.57
EversourceEner ES 62.95
Exelixis
EXEL 30.93
Exelon
EXC 39.30
Expedia
EXPE 121.25
ExpeditorsIntl EXPD 65.36
ExpressScripts ESRX 74.99
ExtraSpaceSt EXR 87.76
ExxonMobil XOM 84.02
F5Networks FFIV 132.08
FMC
FMC 95.00
Facebook
FB 177.92
FactSet
FDS 193.09
Fastenal
FAST 55.14
FederalRealty FRT 133.61
FedEx
FDX 248.32
Ferrari
RACE 106.75
FiatChrysler FCAU 18.34
FibriaCelulose FBR 14.61
FidNatlFin FNF 39.30
FidNatlInfo FIS 94.28
FifthThirdBncp FITB 30.64
58.com
WUBA 71.59
FirstAmerFin FAF 56.28
FirstData
FDC 16.72
t FirstRepBank FRC 87.16
FirstSolar FSLR 68.35
FirstEnergy FE 30.45
Fiserv
FISV 131.99
s FleetCorTech FLT 193.38
Flex
FLEX 18.08
FlirSystems FLIR 47.01
Fluor
FLR 51.76
FomentoEconMex FMX 91.72
FordMotor F
12.58
ForestCIty A FCE.A 24.14
Fortinet
FTNT 44.01
Fortis
FTS 36.72
Fortive
FTV 72.50
FortBrandsHome FBHS 68.78
Franco-Nevada FNV 79.73
FranklinRscs BEN 43.53
s FreeportMcM FCX 19.27
s FreseniusMed FMS 52.72
IncomeP
NAV Chg %Ret
Income C t
Federated Instl
Net
Sym Close Chg
Stock
96.92 +0.22 37.4
BlChip
28.35 +0.04 15.7
CapApp
33.50 +0.07 16.7
EqInc
72.08 +0.15 22.2
EqIndex
Growth
63.03 +0.13 34.4
HelSci
70.95 +0.17 29.0
37.14 +0.07 38.7
InstlCapG
18.66 +0.07 28.1
IntlStk
15.12 +0.05 20.8
IntlValEq
87.46 +0.14 25.5
MCapGro
MCapVal
30.54 +0.09 12.2
N Horiz
52.84 +0.08 32.2
9.48 -0.01 3.9
N Inc
OverS SF r 11.33 +0.02 27.2
22.58 +0.03 15.9
R2020
17.63 +0.03 18.0
R2025
25.98 +0.05 19.7
R2030
R2035
19.02 +0.04 21.2
27.32 +0.07 22.4
R2040
37.49 +0.09 19.5
Value
11.3 PRIMECAP Odyssey Fds
AggGrowth r 44.76 +0.22
15.4 Growth r
37.54 +0.07
19.6 Principal Investors
DivIntlInst 13.91 +0.04
16.2 Prudential Cl Z & I
14.56
...
TRBdZ
NA Schwab Funds
NA
...
S&P Sel
NA TIAA/CREF Funds
19.76 +0.05
EqIdxInst
27.2 IntlEqIdxInst 20.18 +0.03
Tweedy Browne Fds
7.5 GblValue
28.46 +0.01
VANGUARD ADMIRAL
2.3 500Adml 248.09 +0.50
34.81 +0.04
BalAdml
2.6 CAITAdml
11.77 +0.01
CapOpAdml r154.54 +0.10
NA EMAdmr
38.00 +0.22
NA EqIncAdml 78.22 +0.17
NA ExplrAdml 88.91 +0.18
ExtndAdml 85.32 +0.33
18.2 GNMAAdml 10.45 -0.01
GrwthAdml 72.74 +0.11
27.7 HlthCareAdml r 87.07 +0.22
HYCorAdml r 5.91
...
9.8 InfProAd
25.53
...
IntlGrAdml 95.66 +0.08
14.8 ITBondAdml 11.34 -0.02
21.8 ITIGradeAdml 9.74
...
29.3 LTGradeAdml 10.63
...
MidCpAdml 192.71 +0.75
19.6 MorgAdml 91.20 +0.20
MuHYAdml 11.44 +0.02
34.5 MuIntAdml 14.12 +0.01
26.8 MuLTAdml 11.67 +0.02
MuLtdAdml 10.89 +0.01
17.1 MuShtAdml 15.71
...
PrmcpAdml r134.29 -0.05
NA REITAdml r 117.66 +0.67
4.9 SmCapAdml 71.21 +0.24
STBondAdml 10.37 -0.01
34.9
33.1
28.8
6.4
NA
21.8
25.4
15.3
22.4
14.2
4.8
30.0
30.8
18.9
23.8
18.9
1.8
28.5
20.2
6.9
2.6
43.3
3.6
4.1
11.8
20.0
30.7
7.9
4.5
6.5
2.1
1.1
30.3
5.0
16.9
1.1
26.5
17.7
17.3
10.3
15.1
19.8
19.7
20.2
14.3
16.1
17.8
19.4
21.0
21.8
28.0
11.1
19.5
15.2
26.9
20.1
18.6
2.0
11.6
14.2
16.1
17.7
19.4
21.0
21.7
21.7
8.6
2.3
10.2
15.0
17.2
22.3
18.9
12.5
3.4
27.3
21.7
14.2
26.6
26.5
18.9
28.5
2.7
22.4
22.4
21.8
20.0
20.0
17.0
2.1
3.4
3.5
3.5
2.4
27.5
27.5
21.8
17.7
NA
Stock
Sysco
Net
Sym Close Chg
UnumGroup UNM 55.14
VEON
VEON 3.88
VEREIT
VER 7.74
VF
VFC 74.29
s Visa
V
114.35
VailResorts MTN 214.76
s Vale
VALE 12.18
ValeantPharm VRX 21.16
s ValeroEnergy VLO 92.30
Vantiv
VNTV 73.83
VarianMed VAR 112.29
Vedanta
VEDL 21.12
VeevaSystems VEEV 55.86
Ventas
VTR 60.43
VeriSign
VRSN 115.50
VeriskAnalytics VRSK 96.45
Verizon
VZ 53.43
VertxPharm VRTX 151.17
Viacom B VIAB 30.81
Viacom A VIA 34.75
Vipshop
VIPS 11.91
VistraEnergy VST 17.91
VMware
VMW 126.61
Vodafone VOD 31.93
VornadoRealty VNO 78.07
VoyaFinancial VOYA 50.13
VulcanMatls VMC 127.60
SYY 61.06 0.20
T U V
TAL Education TAL 29.13
TD Ameritrade AMTD 51.47
TE Connectivity TEL 95.24
Telus
TU 37.86
Ternium
TX 31.43
TIM Part
TSU 19.43
TJX
TJX 76.38
T-MobileUS TMUS 64.35
TRowePrice TROW 105.34
TaiwanSemi TSM 39.74
TakeTwoSoftware TTWO 109.59
Tapestry
TPR 44.34
TargaResources TRGP 48.19
Target
TGT 64.82
TataMotors TTM 32.32
TechnipFMC FTI 31.40
s TeckRscsB TECK 26.61
TelecomArgentina TEO 36.64
TelecomItalia TI
8.70
TelecomItalia A TI.A 7.29
TeledyneTech TDY 181.11
Teleflex
TFX 251.51
TelefonicaBras VIV 14.81
Telefonica TEF 9.74
TelekmIndonesia TLK 32.03
Tenaris
TS 31.78
Teradyne
TER 42.58
Tesla
TSLA 315.36
TevaPharm TEVA 19.00
TexasInstruments TXN 104.82
Textron
TXT 57.00
ThermoFisherSci TMO 191.17
ThomsonReuters TRI 43.54
ThorIndustries THO 153.01
3M
MMM 235.72
Tiffany
TIF 104.22
TimeWarner TWX 91.61
Toll Bros
TOL 48.50
s Torchmark TMK 91.16
Toro
TTC 65.41
TorontoDomBk TD 58.40
Total
TOT 55.54
TotalSystem TSS 79.70
ToyotaMotor TM 128.27
TractorSupply TSCO 75.08
TransCanada TRP 48.56
TransDigm TDG 275.77
TransUnion TRU 55.11
Travelers
TRV 135.66
Trimble
TRMB 40.97
s TurkcellIletism TKC 10.13
TurquoiseHill TRQ 3.45
21stCenturyFoxA FOXA 34.48
21stCenturyFoxB FOX 34.08
Twitter
TWTR 24.31
TylerTech TYL 177.43
TysonFoods TSN 81.55
UBS Group UBS 18.37
UDR
UDR 38.62
UGI
UGI 47.04
s US Foods USFD 31.76
UltaBeauty ULTA 225.33
UltSoftware ULTI 216.89
UltraparPart UGP 22.57
UnderArmour A UAA 15.52
UnderArmour C UA 14.14
Unilever
UN 56.39
Unilever
UL 55.31
UnionPacific UNP 135.12
UnitedContinental UAL 67.54
UnitedMicro UMC 2.39
UPS B
UPS 119.05
s UnitedRentals URI 173.33
US Bancorp USB 53.95
US Steel
X
35.74
s UnitedTech UTX 128.12
UnitedTherap UTHR 149.24
UnitedHealth UNH 222.77
UnivDisplay OLED 174.80
UniversalHealthB UHS 114.37
Stock
Net
Sym Close Chg
Stock
-0.74
0.26
0.05
0.20
0.09
0.08
-0.59
0.24
0.32
0.66
1.79
-0.31
0.57
-0.32
-0.31
-0.08
0.24
-0.60
-0.31
-0.04
-2.75
1.86
0.01
0.03
0.67
0.11
0.28
3.72
-0.10
0.29
0.03
...
0.08
0.91
-0.48
-1.02
0.24
0.47
0.47
0.17
0.43
0.27
0.40
0.04
0.20
0.50
1.96
-0.31
0.89
0.56
0.24
0.06
-0.07
-0.06
0.08
0.33
0.07
0.22
0.26
0.46
0.16
-0.32
0.95
0.25
-0.21
-0.09
-0.06
-0.11
-1.20
0.42
0.03
-0.03
1.86
0.18
0.72
0.54
-2.04
2.35
-1.55
0.21
W X Y Z
WABCO
WBC 145.02
WEC Energy WEC 66.43
s WEX
WEX 141.01
W.P.Carey WPC 69.26
WPP
WPP 91.01
Wabtec
WAB 81.51
Wal-Mart WMT 99.40
WalgreensBoots WBA 72.94
WasteConnections WCN 70.85
WasteMgt WM 86.29
Waters
WAT 194.81
s Watsco
WSO 171.38
Wayfair
W 80.91
Weibo
WB 104.33
WellCareHealth WCG 203.03
WellsFargo WFC 61.30
t Welltower HCN 63.72
WestPharmSvcs WST 99.02
WestarEnergy WR 52.74
WestAllianceBcp WAL 57.24
WesternDigital WDC 80.64
WesternGasEquity WGP 36.85
WesternGasPtrs WES 47.86
WesternUnion WU 19.07
s WestlakeChem WLK 106.44
WestpacBanking WBK 24.53
WestRock WRK 63.20
Weyerhaeuser WY 35.26
WheatonPrecMet WPM 22.13
Whirlpool WHR 170.67
Williams
WMB 30.51
WilliamsPartners WPZ 39.01
WillisTowers WLTW 151.39
Wipro
WIT 5.41
WooriBank WF 44.62
Workday
WDAY 102.20
s Wyndham WYN 116.66
s WynnResorts WYNN 168.48
XPO Logistics XPO 91.37
XcelEnergy XEL 48.08
Xerox
XRX 29.45
Xilinx
XLNX 68.50
Xylem
XYL 68.25
YPF
YPF 22.35
YY
YY 113.36
Yandex
YNDX 32.56
YumBrands YUM 82.67
YumChina YUMC 40.68
ZTO Express ZTO 15.91
ZayoGroup ZAYO 37.00
Zillow C
Z
41.42
Zillow A
ZG 41.30
ZimmerBiomet ZBH 121.75
ZionsBancorp ZION 51.34
Zoetis
ZTS 72.39
52-Wk %
Sym Hi/Lo Chg Stock
PeabodyEnergy BTU
PennNational PENN
PlanetFitness PLNT
PlumasBancorp PLBC
PoageBankshares PBSK
Potash
POT
QuantaServices PWR
Quanterix
QTRX
RayonierAdvMatls RYAM
RedLionHotels RLH
RepublicSvcs RSG
RioTinto
RIO
RoyalBkCanada RY
RoyalDutchA RDS.A
RoyalDutchB RDS.B
Saia
SAIA
Sasol
SSL
ScottsMiracleGro SMG
Siliconware
SPIL
SolarisOilfield SOI
SouthernNts77 SOJC
SoCopper
SCCO
Statoil
STO
SteelDynamics STLD
SteelPartners SPLP
StevenMadden SHOO
SunHydraulics SNHY
SynchronyFin SYF
Systemax
SYX
TechnicalComms TCCO
TeckRscsB
TECK
Terex
TEX
Torchmark
TMK
TurkcellIletism TKC
TurningPoint
TPB
TwoHarborsPfdC TWOpC
US Energy
USEG
US Foods
USFD
UbiquitiNetworks UBNT
UnitedRentals URI
USComdtyIndxFd USCI
USCopperIndex CPER
USDieselHeatingOil UHN
UnitedTech
UTX
Visa
V
VOC Energy
VOC
Vale
VALE
ValeroEnergy VLO
VarexImaging VREX
Verso
VRS
WEX
WEX
WSIIndustries WSCI
Watsco
WSO
WebsterFinlPfdF WBSpF
Welbilt
WBT
WestlakeChem WLK
39.69
31.61
34.87
23.35
21.00
20.98
39.71
22.66
20.99
10.00
67.47
52.88
81.66
66.63
68.05
71.70
34.08
105.09
8.44
21.83
25.30
47.80
21.45
43.87
20.10
47.55
65.12
39.11
34.64
12.45
26.82
48.90
91.19
10.17
20.84
25.09
1.72
31.85
71.89
173.47
42.42
21.26
19.23
128.17
114.92
6.15
12.20
92.58
41.66
17.02
141.28
5.10
171.44
25.29
23.56
106.47
0.39
0.06
0.04
-0.23
0.33
0.93
0.19
-0.39
0.16
-0.11
1.19
0.65
0.16
0.29
1.12
0.68
0.15
-0.38
-0.17
...
-0.08
0.06
-0.35
0.22
0.31
-0.38
0.12
2.1
0.6
0.5
1.4
2.5
0.3
-0.4
6.2
-2.2
1.0
0.7
2.0
1.0
0.4
0.3
1.3
0.7
1.8
1.2
2.5
0.2
1.1
0.3
1.8
-0.3
...
1.3
1.0
1.0
33.9
0.9
-0.2
0.5
2.4
6.6
...
6.5
0.5
0.7
1.1
0.7
1.0
0.5
0.4
0.3
4.1
1.6
0.2
0.3
0.5
0.3
...
0.5
0.6
1.1
0.7
0.90
0.55
0.43
0.68
0.61
0.14
0.14
0.08
-0.17
0.18
1.36
0.90
-0.19
-0.04
1.27
0.35
0.45
-0.37
0.14
0.31
0.18
0.26
0.20
0.27
0.76
0.21
0.12
0.16
-0.01
0.59
0.12
0.28
0.28
-0.03
-0.88
-0.86
1.29
-1.73
-0.80
0.28
0.22
0.59
0.02
0.14
-1.59
0.11
0.27
0.49
-0.01
0.38
-0.17
-0.16
1.85
0.63
-0.06
52-Wk %
Sym Hi/Lo Chg
31.96
116.72
171.06
37.25
16.00
43.30
WolverineWwide WWW
Wyndham
WYN
WynnResorts WYNN
XOMA
XOMA
ZK Intl
ZKIN
Zogenix
ZGNX
0.8
1.1
-1.0
-3.4
10.9
4.7
Lows
1.04 -17.0
388.60 1.1
4.85 -0.4
33.53 1.0
0.17 -10.3
7.27 -0.5
0.15 -33.7
11.34 1.5
1.84 -0.5
7.95 -1.4
16.05 0.1
14.83 -5.1
2.95 -1.6
12.04 -0.2
9.53 -0.3
86.26 0.6
3.13 -4.3
17.25 -0.1
44.77 1.0
8.97 -1.1
9.88 -0.3
1.23 4.7
4.09 -2.8
2.20 -4.3
9.35 ...
52.60 -0.6
5.09 -2.9
0.57 -9.1
2.25 -2.1
7.44 1.1
53.34 -0.7
9.32 -3.9
0.02 -60.3
0.02 -60.7
2.51 4.2
1.02 -1.9
3.57 -1.1
0.16 13.0
5.94 -13.6
2.95 -5.4
3.59 -3.2
21.24 0.6
15.26 0.1
2.42 -2.0
0.04 -40.0
63.06 0.7
1.81 -5.7
0.50 3.0
AirMedia
AMCN
Alexanders
ALX
AratanaTherap PETX
AssuredGuaranty AGO
Avinger
AVGR
CapitalaFinance CPTA
Check-Cap Wt CHEKW
ColonyNorthStar CLNS
EngGr-Cmg C CIG.C
Volaris
VLRS
CorpCapitalTr CCT
DenaliTherap DNLI
EastmanKodak KODK
EllingtonResiMtg EARN
FedStreetAcqnUn FSACU
FirstRepBank FRC
GNC Holdings GNC
GeneralElec
GE
Graco
GGG
GrupoSimec
SIM
HaymakerAcqnUn HYACU
IconixBrand
ICON
InovioPharma INO
JAKKS Pacific JAKK
LibertyTripAdvB LTRPB
MatthewsIntl MATW
MedleyCapital MCC
MySize
MYSZ
Network1Techs NTIP
NewSeniorInvt SNR
NorwegCruise NCLH
NuCana
NCNA
OncobiologicsWtA ONSIW
OncobiologicsWtB ONSIZ
PacBiosciCA
PACB
ParkerVision
PRKR
RealNetworks RNWK
RegionalHlthProp RHE
ReToEcoSol
RETO
RevolutionLight RVLT
SearsHoldings SHLD
StarwoodProp STWD
TCP Capital
TCPC
UnvlTechInst UTI
ValleyNatlWt VLY.WS
Welltower
HCN
Yield10Bioscience YTEN
ZosanoPharma ZSAN
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
December 28, 2017
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
Latest ago
Inflation
Nov. index
level
Chg From (%)
Oct. '17 Nov. '16
Other short-term rates
U.S. consumer price index
246.669
253.492
All items
Core
0.002
–0.06
2.2
1.7
Latest
Policy Rates
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.51
0.48
Overnight repurchase
1.49
1.51
U.S.
U.S. government rates
2.00
2.00
1.25
1.4200
1.5625
1.3000
1.4100
1.4200
1.4400
1.6125
1.3500
1.4100
1.4400
0.5900
0.8125
0.4000
0.4000
0.5800
2.00
Federal funds
1.4300
1.5625
1.3500
1.4100
1.4400
Treasury bill auction
1.245 1.245 1.300 0.400
1.445 1.355 1.445 0.505
1.530 1.480 1.530 0.590
4 weeks
13 weeks
26 weeks
Secondary market
Fannie Mae
30-year mortgage yields
30 days
60 days
One month
Three month
Six month
One year
3.25
3.25
2.50
1.55
1.67
1.67
0.72
3.518 3.543 3.865 3.253
3.550 3.576 3.899 3.281
1.56775
1.69465
1.84363
2.10634
1.55213
1.67464
1.82488
2.09091
1.56900
1.69465
1.84363
2.11063
0.76333
0.99789
1.31767
1.68456
-0.411
-0.385
-0.321
-0.244
-0.416
-0.385
-0.319
-0.245
-0.378
-0.336
-0.227
-0.086
-0.420
-0.387
-0.325
-0.261
Euro Libor
One month
Three month
Six month
One year
Euro interbank offered rate (Euribor)
One month
Discount
Effective rate
High
Low
Bid
Offer
90 days
Value
Traded
Latest
Commercial paper (AA financial)
-0.367 -0.369 -0.366 -0.375
—52-WEEK—
High Low
-0.329 -0.329 -0.318 -0.332
-0.271 -0.271 -0.220 -0.276
-0.186 -0.186 -0.081 -0.194
Three month
Six month
One year
52-Week
High
Low
DTCC GCF Repo Index
34.200 1.574 0.471
99.440 1.586 0.496
1.574
1.586
Treasury
MBS
Open Implied
Settle Change Interest Rate
Libor
4.50 4.50 4.50 3.75
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Euro zone
Switzerland
Britain
Australia
52-Week
high
low
Week
Latest ago
Call money
3.25
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
Week
ago
Latest
International rates
Week
ago
—52-WEEK—
High Low
DTCC GCF Repo Index Futures
Treasury Dec
Treasury Jan
Treasury Feb
98.645 unch. 3934 1.355
98.540 unch. 2178 1.460
98.540 unch. 813 1.460
Weekly survey
Latest
Week ago Year ago
Freddie Mac
3.99
3.44
3.47
30-year fixed
15-year fixed
Five-year ARM
3.94
3.38
3.39
4.32
3.55
3.30
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 December 14, 2017. Other prime rates aren’t directly comparable; lending practices
vary widely by location; Discount rate is effective December 14, 2017. DTCC GCF Repo Index is
Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value
traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET.
Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
Dividend Changes
Dividend announcements from December 28.
Company
Symbol
Yld %
Amount
New/Old
Frq
Payable /
Record
Increased
FR STRATSs 2006-2 GS Grp
GJS
2.8 .0467 /.04503 M
Jan15 /Jan14
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO:
spin-off.
.
THE WALL STREET JOURNAL.
B10 | Friday, December 29, 2017
BUSINESS & FINANCE
TAX REPORT | By Laura Saunders
It’s a Taxing Time in the Wake of Overhaul
I heard that interest will
be deductible on mortgages
only up to $750,000. Is this
true? What about refinancings?
The new law allows taxpayers with existing mortgages to continue to deduct
interest on a total of $1 million of debt for a first and
second home.
For new buyers, the $1
million limit is now $750,000
for a first and second home.
This means that if Jane already has a $750,000 mortgage on a first home and a
mortgage of $200,000 on a
second one, she can continue
to deduct the interest on
both.
What if she already has
one home with a $750,000
mortgage and wants to buy a
second one next year and get
a mortgage of $200,000? In
this case, she couldn’t deduct
the interest on the second
loan, according to a spokesman for the National Association of Realtors.
As to refinancings: The realty group says it believes
homeowners can refinance
mortgage debt existing on
Dec. 14, 2017, up to $1 million
and deduct the interest. But
the new loan can’t exceed the
amount of the mortgage being refinanced.
The law also suspends deductions for interest on
home-equity loans through
2025.
I’m retired. How are the
changes going to affect me?
One key change will be
KEITH SRAKOCIC/ASSOCIATED PRESS
Wall Street
Journal readers have bombarded tax reporters and
advisers with
questions about the tax overhaul. On Thursday, the Journal examined capital gains
and pass-through businesses.
Today, an examination of
mortgage interest, medical
expenses and more.
Taxpayers with existing mortgages can continue to deduct interest on a total of $1 million of debt for a first and second home.
positive for many retirees.
The positive change is that
the standard deduction is
nearly doubling, to $12,000
for individuals and $24,000
for married joint filers. This
is the amount taxpayers can
deduct if they don’t list
write-offs for state taxes,
charitable donations and the
like on Schedule A.
Congress also decided to
keep the “additional standard
deduction” for people age 65
and over in the new law. It
will be $1,600 for singles and
$1,300 for each spouse in a
married couple in 2018,
which is what it was going to
be for 2018 in the old law.
The personal exemption,
which would be $4,150 in
2018, also is being repealed.
The bottom line: Say John
and Margaret are a married
couple, ages 67 and 65, with
no children at home. Under
the prior law for 2018, they
would get a standard deduction of $13,000, additional
deductions of $2,600, and
personal exemptions totaling
$8,300. Total: $23,900.
Under the new law, John
and Margaret will get a standard deduction of $24,000
plus an additional standard
deduction of $2,600, for a total of $26,600, or $2,700
more.
This deduction has a high
hurdle, so many taxpayers
who can take it have large
unreimbursed medical expenses, such as for nursing
homes or custodial care at
home.
The new law has a slight
expansion, says Gil Charney,
director of the Tax Institute
at H&R Block Inc. It allows
taxpayers to take a deduction
for 2017 and 2018 if medical
expenses exceed 7.5% of income rather than 10% of income.
Is the medical expense deduction changing?
In the end, Congress decided not to repeal the deduction for medical expenses
proposed by Republicans in
the House of Representatives.
The new law limits state
and local tax deductions, or
SALT, to $10,000 per return.
I’m married, so if my spouse
and I file separately, will we
get two $10,000 deductions
instead of just one?
Sorry, no. The SALT deduction for married couples
filing separately is $5,000
each, for a total of $10,000
per couple, just as if you filed
jointly.
To get two $10,000 deductions, you would have to get
divorced.
There are steps to take
ahead of the landmark
change for 2018. The deduction can be a mix of property
taxes and income or sales
taxes.
The new law specifically
bars deductions for payments
earmarked for 2018 state income taxes, but tax specialists say it is still a good idea
to pay balances due on 2017
income taxes before yearend.
The law doesn’t bar pre-
payments of property taxes.
Some locales are making it
easier to pay property-tax
bills due in 2018 to get a
2017 deduction.
In general, says Crowe
Horwath accountant David
Lifson, the 2018 amount has
to be billed in 2017 to be eligible for a 2017 deduction,
but many locales do bill this
way.
Another caveat is that taxpayers who owe alternative
minimum tax, or AMT, for
2017 will lose some or all of
the value of SALT deductions.
For them, accelerating payments could provide a reduced deduction or none at
all. Because the AMT is complex, it is hard to know the
best moves without using a
computer program.
ECB Taper Isn’t Cause for Alarm Ambac Clears Way
BY JON SINDREU
For investors worried about
the European Central Bank’s
plan to begin tapering corporate-bond purchases in January, Britain’s example makes
the case for remaining calm.
The once-lifeless sterling
corporate-debt market was revitalized after the Bank of
England announced it would
buy bonds in August 2016. But
even after the central bank
stopped purchases at the end
of April, the market continued
its ascent to record levels of
issuance despite concerns
about Britain leaving the European Union.
Issuance of pound-denominated corporate debt has
amounted to £41 billion ($55
billion) so far in 2017, the second-highest on record after
2009, according to data-collection firm Dealogic. That compares with £27 billion in 2016
and £23 billion in 2015, before
the BOE launched its £10 billion corporate bond-buying
program.
Furthermore, issuance remained steady after BOE purchases stopped. In November,
21 companies issued investment-grade-rated debt in sterling, Dealogic data show, the
highest number on record.
“Once the program ended
there was actually zero effects
seen, and we’ve continued to
see a positive momentum in
the sterling market even
though the program ended,”
said Marco Baldini, head of
European bond syndicate at
For a Debt Swap
Revitalized
The Bank of England's corporate-bond buying program has been a boon for the market even
after it stopped, which is good news for investors worried over the European Central Bank’s
plan to taper purchases from January.
Monthly issuance of sterling-denominated
corporate debt*
£8 billion
Investment grade
BOE bond buying
announced
6
BY ANDREW SCURRIA
Extra return that investors demand to hold a
corporate bond instead of a risk-free asset†
Other
BOE bond
buying ends
3.0 percentage points
Sterling
Euro
2.5
2.0
1.5
4
1.0
2
0.5
0
0
2015
’16
’17
2015
’16
*Figures for December 2017 are provisional †Measured by asset-swap spreads. Data through Wednesday
Sources: Dealogic (issuance); FactSet via Bank of America Merrill Lynch (return)
Barclays. “It’s left the market
in a much better place than it
was.”
This should quiet the
nerves of investors who saw
central banks’ meddling in
bond markets as disruptive
and were concerned that it
could crowd out trading
among private hands. They
feared that the end of these
programs could lead to a
choppy market.
While there are signs that
something like this could happen in the thinly traded eurozone covered-bond market,
the U.K.’s experience suggests
the end of ECB purchases can
be broadly more benign than
thought. It also suggests central-bank intervention can
benefit in the long run.
Before officials started buying corporate bonds to cushion the potential impact of
Brexit on the economy, the
sterling market had been in
decay for at least two years as
issuers moved to more widely
traded markets denominated
in U.S. dollars and euros.
The BOE’s buying sparked
new issuance and slashed
borrowing costs for companies. According to Bank of
America Merrill Lynch, the
average spread between sterling corporate-bond yields
and measures of risk-free bor-
’17
THE WALL STREET JOURNAL.
rowing fell from 1.9 to 1.6 percentage points right after the
central bank announced the
program.
“It led spreads to contract
quite a lot, making it more attractive for borrowers to consider sterling, and that creates
a lot more liquidity in markets,” said Sajiv Vaid, a fund
manager at Fidelity International.
The largest issuers in sterling this year were the world’s
biggest brewer, AnheuserBusch InBev SA/NV; German
auto maker Porsche Automobil Holding SE and American
telecommunications provider
Liberty Global PLC.
Banks Get Waivers for Retirement Business
BY ANDREW ACKERMAN
WASHINGTON—Five global
banks, including JPMorgan
Chase & Co. and Citigroup
Inc., can continue managing
corporate retirement plans in
the wake of recent guilty pleas
to criminal charges, under new
waivers announced by the
Trump administration on
Thursday.
The waivers, set by the Labor Department, are the latest
fallout of the banks’ criminal
convictions in market-manipulation schemes, which the
firms collectively paid billions
of dollars to settle in recent
years. Without the waivers,
the banks’ asset-management
units would have been disqualified from managing retirement plans under U.S. law,
even though the misconduct in
question occurred in other areas of each of the banks.
The relief allows each of
the firms to continue managing pension plans and individ-
ual-retirement accounts.
The waivers also apply to
units of Barclays PLC, UBS
Group AG and Deutsche Bank
AG.
The Obama administration,
in its waning days, approved
one-year waivers for each of
the banks and proposed granting the firms five-year reprieves from the restrictions.
Thursday’s move by the
Trump administration completes those longer-term waivers, though it struck a tougher
posture than its predecessors:
Two of the banks, Deutsche
Bank and UBS, will only receive three-year waivers. The
administration said that it
shortened the waivers for
those two firms because they
had more than one criminal
conviction.
Spokesmen for J.P. Morgan,
Barclays and Deutsche Bank
declined to comment. Spokesmen for UBS and Citigroup
didn’t respond to a request for
comment.
Ambac Assurance Corp.
bought peace with hedge funds
that were wary of a $5 billion
restructuring proposal, moving
the bond insurer a step closer
to digging out from losses
from the U.S. housing crash.
Cyrus Capital Partners LP,
Polygon Global Partners LLP
and Taconic Capital Advisors
LP agreed to drop their opposition to a proposed deal that
would lift Ambac out of statesupervised rehabilitation, according to records filed in Wisconsin
state
court
on
Wednesday. By placating those
funds, Ambac, a subsidiary of
Ambac Financial Group Inc.,
cleared the way for a proposed
settlement with other bondholders that haven’t been paid
in full since the insurer took
unexpected losses in the financial crisis nearly a decade ago.
Bond insurers collect premiums for policies that guarantee
investors full principal and interest payments if a borrower
defaults. Ambac, a traditional
insurer of municipal bonds,
took huge losses on real-estate
bonds and derivatives that
soured along with the housing
market, prompting Wisconsin
regulators in 2010 to seize
part of the business and create
a segregated account to contain the damage.
Ambac staged a modest
comeback by suing the banks
that put together those mortgage securities and by making
only partial payments to bondholders. Now, regulators want
to wind down Ambac’s segregated account, pay down its
deferred policy claims, and
end the state-run rehabilitation after eight years.
But the plan, which requires
court approval, depends on
Ambac’s capacity to cover future losses on billions of dollars of insured municipal debt,
including $9.5 billion in guarantees on Puerto Rico bonds.
Ambac and other insurers had
wagered years ago that Puerto
Rico would repay its obligations, writing policies that are
now expected to generate
losses as the U.S. territory re-
structures its debts.
Ambac’s potential losses
will hinge on whether Puerto
Rico can bounce back from the
devastation of Hurricane Maria, which destroyed the island’s power grid and slashed
expectations for recoveries on
its $73 billion in debt. Benchmark bond prices have
dropped to about 23 cents on
the dollar from 60 cents before
the storm, while the federal
oversight board installed by
Congress decides how much
debt Puerto Rico can afford to
repay.
Yet Ambac’s regulators have
insisted that even a worst-case
scenario shouldn’t prevent
Ambac from exiting rehabilitation under a restructuring
transaction designed to balance the interests of its stakeholders.
A Wisconsin judge is scheduled to consider the proposal
on Jan. 4. It would swap $3.8
billion in deferred claims and
$1.2 billion in surplus notes for
a combination of cash and
debt valued at 93.5 cents on
the dollar.
Beneficiaries of the proposal would include CarVal Investors LLC, Canyon Capital
Advisors LLC and other investors with deferred claims that
argued for years that Ambac
was healthy enough to pay
them back without jeopardizing the rest of its business.
Cyrus, Polygon and Taconic
worried that the proposal
would divert $1.3 billion from
the pot of money available to
guarantee their Puerto Rico
bonds. Ambac repurchased
their securities under the deal
unveiled Wednesday to take
them out of the equation.
Those bonds, known as Cofinas, trade at deep discounts
because they pay no interest
until they mature starting in
2047 and because of questions
around their claim on Puerto
Rico’s sales-tax revenue.
Ambac had previously
bought back some of its insured debt to help justify ending the rehabilitation. It said
on Thursday that it now owns
58% of its insured Cofina
bonds.
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | B11
* * * *
MARKETS
Seoul Acts Tough on Bitcoin Copper Extends Its
Record Win Streak
Government considers
closing exchanges
to curb speculation
in cryptocurrencies
BY AMRITH RAMKUMAR
AND DAN BARABAS
South Korea’s government
announced tougher measures
to crack down on cryptocurrency trading and said it is
considering shutting down the
nation’s bitcoin exchanges,
stepping up its attempts to
curb investor speculation fueling the market.
The proposed legislation
will ban the use of anonymous
cryptocurrency accounts starting next month and prevent
banks from providing settlement services for unidentified
digital-currency trades on bitcoin exchanges, according to a
statement from the government on Thursday.
The government also cautioned that digital currencies
could be “vulnerable to the
damage from investment fraud
or hacking attacks on the exchanges.”
Last week, Youbit, a Seoulbased cryptocurrency exchange, suspended trading and
filed for bankruptcy after it
was hacked a second time in
eight months and lost a chunk
of its digital currency reserves. Investigators in South
Korea are looking into North
Korea’s possible involvement
after the exchange collapsed.
Late Thursday, bitcoin was
trading at about $13,950, according to research site CoinDesk. It has lost more than
one-quarter of its value since
hitting a high near $20,000
earlier this month.
Many South Koreans have
taken to bitcoin and other
cryptocurrencies, helping fuel
their rise in value this year. At
one point earlier this month,
SEONGJOON CHO/BLOOMBERG NEWS
BY STEVEN RUSSOLILLO
AND KWANWOO JUN
A cryptocurrency mining operation in South Korea. An investor frenzy is worrying authorities.
South Korea accounted for as
much as one-quarter of global
bitcoin trading activity, according to data firm Coinhills.
The investor frenzy has
worried the country’s authorities, who have raised concerns
about speculation and the risk
investors could lose money
from sharp price declines or
from cyberattacks on digital
currency exchanges. The country’s prime minister, Lee Nakyon, has warned that rising interest in cryptocurrencies
could “lead to some serious
distorted or pathological phenomenon.”
In its statement, the government said it “can’t leave
the abnormal situation of
speculation any longer” and
said “cryptocurrency speculation has been irrationally
overheated” in South Korea. It
said officials from the Justice
Ministry could propose legislation that would shut down
cryptocurrency exchanges nationwide, but didn’t elaborate
on when this might happen.
The new measures mark the
second time in less than a
month that South Korean au-
thorities have proposed curbs
on the industry. At an emergency meeting in mid-December, government officials said
they would levy capital-gain
taxes on trading cryptocurrencies and restrict financial
firms from holding, acquiring
and investing in them.
At a news conference a day
earlier, the head of South Korea’s financial watchdog
warned against the rapid increase in the prices of digital
currencies. “I bet the bubble in
bitcoin will burst later,” Choe
Heung-sik, governor of the Financial Supervisory Service,
said at the press conference
on Wednesday, according to
state news agency Yonhap.
Bitcoin started the year
trading at about $1,000. While
it has surged in value, it also
has experienced several sharp
pullbacks throughout the rally.
Regulators in other countries have also taken recent
steps to caution investors
against buying into the hype
surrounding digital currencies.
The Financial Industry Regulatory Authority in the U.S.
last week warned investors of
cryptocurrency-related stock
scams. The regulatory body
said people should be “cautious when considering the
purchase of shares of companies that tout the potential of
high returns associated with
cryptocurrency-related activities without the business fundamentals and transparent financial reporting to back up
such claims.”
The Finra alert was updated
on the same day that an obscure American company previously called Long Island
Iced Tea Corp. changed its
name to Long Blockchain
Corp. Shares surged as much
as 183% following the change.
Israeli authorities this week
said they would propose regulation that would ban companies that trade bitcoin and
other cryptocurrencies from
listing on the Tel Aviv stock
exchange. At least two Israellisted companies, Blockchain
Mining Ltd. and Fantasy Network Ltd., recently said digital
currencies or blockchain technology are essential to their
operations, causing their share
prices to rise.
Copper prices climbed for a
16th consecutive session
Thursday, extending the industrial metal’s longest winning
streak ever.
Copper for March delivery
added 1% to $3.3160 a pound
on the Comex division of the
New York Mercantile Exchange,
COMMODITIES reaching its
highest
level in almost four years. Strong demand from China, the world’s
largest consumer, and supply
disruptions have buoyed prices
throughout the year.
Recent reports that China’s
largest producer, Jiangxi Copper Co., has been ordered to
halt output for a week to curb
pollution have helped to fuel
recent gains, with copper now
up more than 30% for the year.
Some investors have said
that robust U.S. consumption
for infrastructure following recent natural disasters and
hopes that an infrastructure
spending bill will pass relatively soon are also buoying
copper.
“I think that’s a lot of it,”
said George Gero, managing director at RBC Wealth Management.
“The U.S. demand seems to
be very strong,” he said.
Some analysts have said the
metal’s rise shows investors’
confidence in the global economy because copper is widely
used in manufacturing everything from smartphones to airplanes.
However, others think speculators have had an outsize influence on this year’s rally,
causing it to separate from real
supply-demand fundamentals.
Thin holiday trading around
Christmas and New Year’s Day
also has some analysts remaining cautious about copper
heading into next year.
“Momentum is on the front
foot, but at this time of the
year, we take activity with a
pinch of salt as many investors
are still on holiday and liquidity is lower,” said Geordie Wilkes, research analyst at Sucden
Financial.
A weaker dollar also has
boosted copper recently by
making the dollar-denominated
commodity cheaper for overseas buyers. The WSJ Dollar
Index, which tracks the U.S.
currency against a basket of 16
other currencies, fell 0.4%
The metal rose 1% to
$3.3160 a pound,
its highest level in
almost four years.
Thursday, posting its fourth
straight session of declines.
The dollar’s recent bout of
weakness has propelled gold to
gains in 10 of the last 11 sessions.
Gold for February delivery
added 0.2% to $1,294.10 a troy
ounce Thursday. Geopolitical
concerns and a weaker dollar
have pushed prices up roughly
12% for the year, though the
Federal Reserve’s gradual interest-rate increases have
pulled them about 4% off their
year-to-date highs from early
September.
Typically considered a haven asset that investors favor
when they think markets might
turn rocky, gold struggles to
compete with yield-bearing assets like Treasurys when borrowing costs rise.
Dollar Takes Tumble
To Three-Month Low
U.S. Stock Indexes Finish Higher
BY IRA IOSEBASHVILI
U.S. stocks edged higher as
major indexes regained some
momentum ahead of the final
trading day of the year.
The stock rally that has
sent the S&P 500 up 20% in
2017 went on hiatus in recent
sessions. The S&P 500 has
moved narrowly up and down
this week, as the numbers of
shares that traded hands each
day
were
THURSDAY’S
among the
MARKETS
lowest fullday volumes
of the year.
The broad index failed to register a 0.5% move in either direction over the past seven
trading sessions, including
Thursday.
Still, some analysts and investors say the pause hasn’t
damped their outlook for
stocks in 2018, especially
when many have boosted their
expectations following the
passage
of
Republicans’
sweeping tax overhaul. Earnings for companies in the S&P
500 are expected to increase
roughly 12% next year, which
would be the index’s best
growth rate since 2011, according to FactSet.
“There’s a tremendous
amount of optimism for 2018,”
said Steven Wagner, chief executive of Omnia Family
Wealth, a wealth-management
firm based in Aventura, Fla.
“It’s all going to come down to
earnings and what someone’s
The dollar fell to its lowest
level in three months Thursday
as investors accounted for the
prospect of monetary policy
tightening in the eurozone
next year.
The WSJ Dollar Index,
which measures the U.S. currency against a basket of 16
others, fell 0.4% to 86.23, its
lowest since
CURRENCIES late September. The measure is down
7.2% this year, on track for its
biggest annual drop since
2007.
Investors expect the European Central Bank to begin unwinding its monetary stimulus
program next year, paving the
way for an eventual rate increase in the eurozone.
Rising rates outside the U.S.
dull the dollar’s attractiveness
to yield-seeking investors.
At the same time, they
make the euro more appealing.
Some investors believe the
dollar could see a bounce in
the early months of the year,
as companies bring home
funds to take advantage of a
one-time cut for repatriation
of earnings and cash held
overseas written into the GOP
tax overhaul.
Others, however, are betting
the currency’s decline will continue despite more rate increases expected from the Federal Reserve.
“Once past the third move
in a tightening or easing phase,
a central bank loses its ability
to shock the market or even influence it in a major way,” analysts at BMO Capital Markets
said in a note to clients.
“That is where the Fed is at
now, so we don’t think
whether the Fed hikes two,
three or four times will matter
much” for the dollar.
AUCTION RESULTS
Here are the results of Thursday's Treasury auction.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
SEVEN-YEAR NOTES
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Interest rate
Bids at clearing yield accepted
Cusip number
$75,006,937,100
$31,660,304,600
$8,127,600
$0
99.230576
(2.370%)
2.250%
57.43%
9128283P3
The notes, dated Jan. 2, 2018, mature on Dec. 31, 2024.
ETFs Again Attract
A Big Chunk of Cash
BY CHRIS DIETERICH
In a surprise to no one, exchange-traded funds, among
the hottest trends in the financial world, continued to
gain steam this year.
More than $465 billion in
new money flowed into U.S.listed ETFs through Dec. 20,
shattering last year’s $287 billion record, according to research firms XTF and FactSet.
The biggest ETF recipients
of new money were all of the
big, ordinary and cheap variety, continuing on a course
that has gripped the market
for years. The iShares Core
S&P 500 ETF grabbed $30.2
billion in 2017 through
Wednesday, while the iShares
Core MSCI EAFE ETF, which
owns shares of European, Japanese and Australian companies, took in $20.9 billion.
The moves were most pronounced in funds that target
U.S. stocks. Some $164 billion
flowed into U.S. stock ETFs
through Dec. 6, according to
data from the Investment
Company Institute.
International stock mutual
funds grabbed $74 billion in
new money this year, compared with $147 billion in
ETFs. An ETF trades like a
stock and is designed to mimic
the performance of specific asset classes or indexes.
Still, a host of big actively
managed funds saw large inflows. The Pimco Income
Fund, managed by Dan Ivascyn
and Alfred Murata, pulled in
$29 billion, the most among
all taxable bond funds, according to Morningstar Direct.
The Fidelity Series Intrinsic
Opportunities Fund, a midcap
value fund managed by Joel
Tillinghast, grabbed $3.8 billion in new money, the most
among all U.S. stock funds.
The Oakmark International
Fund, managed by David
Herro, pulled in $8.8 billion.
BY MICHAEL WURSTHORN
AND RIVA GOLD
Stock Slowdown
Shares of financial firms, including Northern Trust and BlackRock,
were among the S&P 500's best performers Thursday, as the index
moved slightly higher in a session of tepid trading.
2.0%
Northern
Trust
1.5
1.0
0.5
BlackRock
0
S&P 500
9:30 a.m.
11
Noon
1
2
Source: FactSet
willing to pay for that stream
of income.”
The Dow Jones Industrial
Average added 63.21 points, or
0.3%, to 24837.51, a record.
The S&P 500 rose 4.92 points,
or 0.2%, to 2687.54, while the
Nasdaq Composite gained
10.82 points, or 0.2%, to
6950.16 after wobbling earlier
in the session.
Shares of financial firms
were among the strongest performers, as the yield on the
10-year Treasury note edged
up to 2.432% from 2.412%
Wednesday, when it suffered
its biggest daily decline since
September. Bond yields rise as
prices fall.
Northern Trust added
$1.64, or 1.7%, to $100.32,
while BlackRock rose 3.66, or
0.7%, to 517.98.
Real-estate and utility
stocks, which are often considered bond proxies because
they tend to pay hefty divi-
3
4 p.m.
THE WALL STREET JOURNAL.
dends, were also among the
biggest gainers.
Investors received further
evidence that the U.S. economy is healthy, a key component to support additional
stock gains, according to analysts. Initial jobless claims, a
proxy for layoffs across the
U.S., held steady last week
near historically low levels, according to data from the Labor
Department.
“Everything seems to be
lining up at this juncture for
the market to do reasonably
well in 2018,” said Michael
Mullaney, director of global
market research for Boston
Partners.
However, the optimistic
outlook, especially since the
tax overhaul’s passage, is its
own sign that investors should
proceed more cautiously, some
money managers said.
“That always worries me,”
Mr. Wagner said despite his
upbeat outlook for next year.
He added that he will be
watching for a pickup in
money flows from individual
investors, which could be a
sign of an eventual pullback.
Data in recent months has
suggested that individual investors, as well as foreign investors, had been putting
more money into U.S. stocks.
But investors pulled $14.5 billion from stock mutual and exchange-traded funds in the
week ended Dec. 20, the most
since Britain’s vote to leave
the European Union in June
2016, according to data from
EPFR Global.
In commodities markets, oil
prices rose as refiners processed more crude from storage in the U.S. Oil for February
delivery gained 20 cents, or
0.3%, to $59.84 a barrel on the
New York Mercantile Exchange.
Meanwhile, markets in Europe and Japan were held back
by a drop in the dollar.
The Stoxx Europe 600 declined 0.3%, as the euro rose
0.5% against the dollar to
$1.1943.
Companies in the index
generate roughly 17% of their
revenue from the U.S., according to FactSet, and that revenue is worth less when the
dollar is weaker.
Japan’s Nikkei Stock Average fell 0.6% Thursday, but
was up 0.25% at midday Friday. In early trading Friday,
Hong Kong’s Hang Seng Index
rose 0.4%.
Treasury Prices Fall in Slow Trading Day
BY DANIEL KRUGER
U.S. government bonds
weakened amid thin trading at
the tail end of a surprisingly
strong year for fixed income.
The yield on the 10-year
Treasury note rose to 2.432%
on Thursday from 2.412%
W e d n e s d a y,
CREDIT
snapping a twoMARKETS day streak of declines.
After three
Federal Reserve rate increases,
the 10-year yield is near the
2.446% level at which it ended
2016, though the two-year
yield is at 1.911%, the highest
since September 2008, leaving
investors split about the likely
direction of yields next year.
The Fed has forecast it will
raise rates three more times in
2018 and twice in 2019, as officials signal they intend to
prevent inflation from gaining
a foothold in the economy.
With investors confident
that the Fed will meet its projections, some are looking for
the gap between the yields to
keep narrowing, as the twoyear yield, which is more sensitive to expectations for
changes in interest-rate policy,
keeps rising.
The gap, known as the yield
curve, has flattened to slightly
more than half a percentage
point from 1.25 percentage
points at the start of the year.
The flattening yield curve is
seen by some investors as a
sign that economic growth
may slow.
Round Trip
The yield on the 10-year Treasury is poised to end
the year near where it started.
2.6%
2.5
2.4
2.3
2.2
2.1
2.0
J
F
Source: Ryan ALM
M
A
M
J
J
A
S
O
N
D
THE WALL STREET JOURNAL.
.
B12 | Friday, December 29, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
A Reliable Currency Trade Breaks Down
Oil rally bypasses the
ruble, Canadian dollar
and other peers linked
to energy exports
Some commodity-linked currencies
have missed out on the oil rally, held
down by country-specific issues and
recent U.S. dollar strength.
Canadian dollar
Russian ruble
Mexican peso
Norwegian krone
BY IRA IOSEBASHVILI
Many
commodity-linked
currencies have sat out a robust rally in oil prices over the
past few months, complicating
what investors often see as a
reliable trade.
U.S. oil prices have rallied
27% since the start of September, driven by tightening supply and expectations that resurgent economic growth in
the U.S. and abroad will drive
demand higher. Yet the Canadian dollar is down 0.7%
against its U.S. counterpart in
that period, the Norwegian
krone is off 5.9%, the Russian
ruble has gained 0.8%, and the
Mexican peso is down 9.3%.
One factor keeping these
currencies down has been the
strength of the U.S. dollar,
which had risen since September amid growing expectations
for the prospects of a sweeping tax overhaul. The dollar
has since pared most of those
gains.
At the same time, many
commodity currencies have
been beset with country-specific issues that have kept investors cautious, despite the
move in oil. The disconnect
presents yet another challenge
to traders in foreign-exchange
markets, where the lowest volatility in years has put a
damper on profits.
“Broadly speaking, it’s surprising, especially when you
look at the global growth forecasts,” said Paresh Upadhyaya,
a portfolio manager at Amundi
Pioneer Asset Management.
“In that environment, commodities took off, and you
would expect commodity currencies to respond in kind.”
The Canadian dollar, for example, rallied sharply between
April and September as inves-
flation have also hurt the currency, as has political uncertainty over a presidential
election in July 2018.
The Russian ruble has been
pressured by its own cocktail
of political uncertainty, amid a
U.S. probe into alleged interference in the U.S. presidential
election and the threat of
more sanctions against Moscow. While Russian President
Vladimir Putin is expected to
win the country’s March 2018
election, the opposition has
threatened protests and an
electoral boycott after their
leader, Alexei Navalny, was
ruled ineligible to run this
month.
Oil and gas exports fuel
Russia’s economy, and the ruble’s fortunes have typically
risen and fallen with oil in the
past. Russia is “a pure commodity play, so you would expect them to be correlated to
oil,” Mr. Esiner said.
Higher oil prices have also
had little effect on the Norwegian krone, the currency of
Western Europe’s biggest oil
producer. The krone in recent
weeks has been buffeted by
weak retail sales and consumption data, and fears of a
sharp decline in the country’s
housing market.
The Organization for Economic Cooperation and Development warned in November
the turnaround in house prices
and its potential impact on the
financial sector and the wider
economy “is the chief financial
vulnerability” in Norway.
Outside of oil currencies,
the Australian dollar has had a
weak response to a jump in
iron ore that began in mid-October, as rising interest rates
in the U.S. make the Australian
currency a less attractive bet
for yield-seeking investors.
But the Chilean peso has shot
up in recent weeks, boosted by
rising expectations of global
demand for copper, a key Chilean export.
—Amrith Ramkumar
contributed to this article.
20%
Performance against the U.S. dollar
15
10
5
0
–5
J
F
M
A
M
J
J
A
S
O
N
D
$60 a barrel
U.S. oil prices
55
50
45
40
J
F
M
A
M
Performance
J
J
A
S
Performance
20%
Australian dollar
against the U.S. dollar
10
N
D
WSJ Dollar Index
30%
94
Copper†
92
20
0
O
90
10
–10
88
–20
0
–30
Iron ore*
–40
2017
86
Chilean peso
against the U.S. dollar
–10
84
2017
2017
*62% iron content †Front month
THE WALL STREET JOURNAL.
Sources: Tullett Prebon (currency); SIX Financial (crude oil, copper); FactSet (iron ore); WSJ Market Data Group (dollar index)
tors jumped into the currency
expecting the central bank to
raise interest rates three times
in 2017. Higher rates tend to
make a currency more attractive to yield-seeking investors.
But after delivering rate increases in July and September,
the central bank turned more
cautious, citing uncertainties
related to new mortgage-financing rules and the fate of
the North American Free
Trade Agreement.
“The market was really
pricing in a third increase in
December,” said Omer Esiner,
chief market analyst at Commonwealth Foreign Exchange.
The unwinding of those bets
“really undermined the Canadian dollar in the last couple
of months.”
Meanwhile, the Mexican
peso is currently near its lowest level in about nine months,
pressured by concerns that the
country’s trade with the U.S.
will take a hit if President
Donald Trump follows through
on promises to tear up Nafta.
Weaker growth and higher in-
HEARD ON THE STREET
Email: heard@wsj.com
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Winners and Losers of Heard’s Stock-Picking Event
Win Some, Lose Some
TROY HARVEY/BLOOMBERG NEWS
Buy
Stock
WIN: Capcom 119%
Pick was:
correct
MICHAEL BUCHER/THE WALL STREET JOURNAL
Heard on the Street Summer Stock picks, annualized gain or loss
through Dec. 15, ranked best to worst.
incorrect
Annualized return since pick
119%
119%
87%
86%
71%
44%
39%
38%
31%
17%
–2%
–17%
–29%
–35%
–55%
Capcom
Ambarella
U.S. Steel
Costco
Airbus
Garmin
Invesco
Cigna
Samsung-SDI
Suncor
Spanish stocks (IBEX)
BNP-Paribas
Merck
WPP
Baker-Hughes
LOSE: RH 226%
Stock
Annualized return since pick
Chipotle
Swiss franc
Yanzhou Coal
Nestlé
China Merchants Bank
Credit Acceptance
U.S. Home Constr ETF
Restoration Hardware (RH)
WIN: U.S. Steel 87%
Source: FactSet
on assets. Eight of the 23
picks were “shorts.” Only
three of those had a positive
total return. The average return of the shorts was a nauseating negative 47.7%.
Fighting the market is tough
at any time but especially
when markets seem to set
record highs nearly every
day. The three worst picks
were all shorts and the nine
top picks were all longs.
While the shorts had to
fight a rising market, the
buy recommendations performed great. The average
annualized return of the
longs was an impressive
34.3%, handily outpacing almost any asset class other
than cryptocurrencies like
bitcoin.
The two top picks with
annualized returns of 119%
were Japanese gaming company Capcom and U.S. chip
maker Ambarella. Their suc-
cess isn’t surprising given
the boom in tech stocks this
year. But the third-place
name, faded blue chip U.S.
Steel, was a surprise, and
more surprising still because
the pick was based not on
U.S. demand, but on China
cutting supply.
Capcom, the maker of the
“Street Fighter” games, delivered a knockout blow with
strong results in November.
Optimism is growing that
shifting its emphasis into
mobile gaming can help it
catch up with more successful rivals. Capcom was a relative bargain in the world of
videogame companies and
remains so after its 32.3%
gain during the contest.
Ambarella, which just
missed the contest’s top
spot, had seen its share of
spill and thrills through a
boom and bust supplying
both action-camera maker
–19%
–6%
–5%
16%
19%
67%
85%
226%
THE WALL STREET JOURNAL.
GoPro and drone manufacturers. Its shares had
slumped to a 16-month low
following a disappointing
earnings report in late August. But Ambarella’s new
focus on sensor chips used
in self-driving cars wasn’t
yet appreciated by investors.
That business bolstered results released in November,
and Wall Street is taking notice. The company is expected to showcase its automated driving technology at
the Consumer Electronics
Show next month.
U.S. Steel was absolutely
unloved and hugely volatile
to boot. But, at the time of
Heard’s write-up, it was
down by 24% in the year to
date despite having posted
its best margin since 2008.
The bet reasoned that China,
the world’s largest steel producer by far, would start to
address its overcapacity.
LOSE: Home builders 85%
While it is always nice to
take a victory lap, picks lasting 3½ months on average
can’t succeed merely on
solid arguments—they also
require good timing and no
small amount of luck to work
out. The same, sadly, was
true on the other side of the
ledger where some sound
analysis collided with harsh
market reality.
Which brings us to RH,
formerly known as Restoration Hardware. Our sell call
was the team’s worst-performing pick by far, with the
shares up 226% annualized
(78% during the event). The
furniture retailer already had
confounded short sellers
skeptical about its business
prospects by buying back
48% of its own shares outstanding over a period of
just five months. The stock
tripled, enriching some insiders. That shopping spree
CAITLIN O’HARA/BLOOMBERG NEWS
Sell
KEVIN LAMARQUE/REUTERS
It has been 15 years since
The Wall Street Journal
ended a long-running experiment to prove that the stock
market is efficient. The test
was inspired by a line in
Burton Malkiel’s investing
classic “A Random Walk
Down Wall Street,” that
monkeys throwing darts at
newspaper stock tables could
pick stocks just as well as
the experts.
For practical reasons such
as costs and legal liability,
we used journalists instead
of monkeys to throw the
darts. Maybe that was a mistake—the journalists somehow lagged behind the market by about 2 percentage
points. The fund managers
beat both handily, though
Mr. Malkiel and others surmised that the publicity generated by the pros’ picks
may have given them an unfair edge.
Back then, pro stock pickers were superstars. Today
there is broad skepticism
that anyone can consistently
beat the market. With investors piling into index funds,
the 14 columnists who write
for Heard on the Street
across the globe tried a different experiment: trying to
see if we could upset conventional wisdom and beat
the market. More analytical,
quantitative and opinionated
than the rest of the newsroom, we picked or panned
23 stocks, indexes or currencies over the course of the
summer and resolved to
track their performance for
all the world to see.
The contest ended Dec. 15,
and since the picks were
made on different days, we
annualized the gains. The results were humbling. The
5.8% annualized gain wasn’t
awful—it just looks poor
against the S&P 500’s roaring 26% annualized gain.
One reason for the lagging
performance is the columnists were allowed to make
buy or sell recommendations
didn’t come cheaply, though.
The company borrowed more
than half the amount it
spent, pushing its debt to a
worryingly high 7.6 times
earnings before interest,
taxes, depreciation and
amortization. The stock fell
nearly 20%, but the shortcovering resumed with gusto
after the company beat earnings forecasts and raised
guidance in early September,
shortly after Heard’s pan of
the stock.
The same excuses can’t be
made for the Heard’s secondworst pick, a short call on
home builders. A broad industry index tracked by S&P
Dow Jones Indices already
had risen three times as
much as the overall stock
market year-to-date on the
perception that tax cuts
would benefit the sector
greatly and that they were
cheap on book value. Yet the
industry faced rising labor
and materials costs and was
more expensive on valuation.
But the passage of tax cuts
with better-than-expected
treatment of mortgages let
home builders dodge a bullet
for now.
Betting against any sector
or stock in this raging bull
market was tough, but a rare
bright spot came courtesy of
Chipotle Mexican Grill,
which fell 19% following our
short call. The stock already
was well off its highs after
several incidents that sickened customers and it
earned an investment from
outspoken hedge-fund manager William Ackman. Heard
argued that the beleaguered
fast-food chain still was
priced for unrealistically
rapid growth and a complete
return of trust from its customers.
Our goal at Heard on the
Street is to give readers
strong research and analysis
to help them make better investing decisions. Maybe we
should leave the actual stock
picking to the monkeys.
Johnny Mathis:
‘Singing was in
my heart.’ M5
HOMES
|
MARKETS
|
PEOPLE
|
MANSION
UPKEEP
|
VALUES
|
NEIGHBORHOODS
|
REDOS
.
‘Riches have never fascinated
me, unless combined with the
greatest charm or distinction.’
—F. Scott Fitzgerald
|
SALES
|
THE WALL STREET JOURNAL.
© 2017 Dow Jones & Company. All Rights Reserved.
FIXTURES
|
BROKERS
Friday, December 29, 2017 | M1
FROM TOP: GLEBE; ALICE WHITBY FOR THE WALL STREET JOURNAL (3)
Albemarle Street | Avg. Price: $19.02 million
TOP OF THE WORLD The 5,250-square-foot penthouse at
The Mellier on Albemarle Street is listed for $40.1 million.
London’s Most Elite Streets
On just four roads in the British capital, average home prices top £10 million; posh
residences, fine dining and high-end shopping create a ‘snob factor’ of living there.
BY RUTH BLOOMFIELD
BEING A real-estate millionaire in London is so
passe. Of London’s 32 boroughs, 28 of them have
at least one street where the average price is
£1m or more.
Egerton Crescent | Avg. Price $18.24 million
Instead, the real cachet is found on the handful of streets where average home prices top £10
million—or $13.4 million. These four “super
streets” are all in Prime Central London, the
center-west section of the city, and all attract a
global mix of buyers.
Their housing stock ranges from contempo-
rary lateral apartments that span the width of a
building to historic houses that have stood for
almost two and a half centuries.
Buying agent Guy Meacock, director of Prime
Purchase, believes there is an undoubted “snob
factor” about owning a home on one of these
Please turn to page M10
Phillimore Gardens | Avg. Price: $14.75 million
Kensington Road | Avg. Price: $13.71 million
THE TRADE
INSIDE
CHARITY BEGINS AT YOUR NEW HOME
Real-estate agents and developers are attracting buyers who want communities that are involved in philanthropy.
JACK FLAME SOROKIN FOR THE WALL STREET JOURNAL
BY KATY MCLAUGHLIN
CLIFFS CLUBS Donna Bailey in her home in the Cliffs at Walnut Cove, in North Carolina, where the developer aids charitable efforts.
DONNA BAILEY WAS looking with her husband, David,
for a place to retire that had
a golf course, a club and a
wellness center. Also on the
list: a way to get involved in
local philanthropy.
“What else would you do
with your life if you didn’t
become involved?” asked Ms.
Bailey, 67, a retired software
marketer.
In 2012, the couple completed construction on a
home for just over $2 million in the Cliffs at Walnut
Cove, about 25 minutes from
Asheville, N.C. The community is one of seven Cliffs
Clubs luxury developments
in the Carolinas. The developer has set up an umbrella
organization that encourages
each of the seven sites to
steer its own philanthropy. It
helps by donating meeting
spaces, discounted food and
drink, and even auction
items.
The program began when
the company realized “there
were a lot of successful businesspeople and Type-A perPlease turn to page M4
GARBO’S HOME
Star’s former unit
fetches $8.5 million M2
GOLDILOCKS HOUSE
Buy a home with a
‘just right’ size M6
DESERT LUXURY
3 homes listed in Palm
Springs, Calif. M8
.
M2 | Friday, December 29, 2017
THE WALL STREET JOURNAL.
NY
MANSION
PRIVATE PROPERTIES
Suzanne Somers to Auction
Unusual Palm Springs Home
to $35 million. About a month ago it
was listed for $14.5 million with Scott
Lyle of Douglas Elliman Real Estate.
“It just wasn’t happening,” Mr.
Hamel said of the decision to go to
auction. The property will sell without
reserve through Concierge Auctions
January 31st.
Located in the Mesa neighborhood
RURAL ESTATE ASKS $24.5 MILLION
A 17,000-square-foot coastal
compound in a rural Northern California community is on the market
for $24.5 million.
Located on roughly 50 acres off
Highway 1 near the small town of
Pescadero, the main house is a short
walk from the water. Constructed out
of stone and timber, it spans 13,000
square feet with seven bedrooms and
nine bathrooms. There is a media
room, a wine room, a gym, a four-car
garage and a 3,000-square-foot
wraparound deck. There is also an
approximately 7,000-square-foot
sports court for tennis and a putting
green. The property overlooks Ano
Nuevo Island and the Pacific Ocean.
The seller, Silicon Valley headhunter Mel Connet, said he bought
the land from technology entrepreneur Brian Hinman in 2005 for $1.3
million. He then spent almost a decade getting the project approved by
the California Coastal Commission,
GRETA GARBO’S NEW YORK HOME SELLS
The Manhattan apartment actress
Greta Garbo called home for nearly 40
years—which had remained largely as
it was when she lived there—
has sold for $8.5 million, or
43% more than its asking
price of $5.95 million, according to her greatnephew Craig Reisfield.
The Sweden-born
movie star, who became
famous in the 1920s and
’30s for films like “Grand Hotel,” bought the apartment in 1954
and used it as her primary home until
her death in 1990, according to Mr. Reisfield. The unit’s association with Ms.
Garbo helped attract multiple offers
and drove up the price, according to
Woody Kerr of Halstead, who shared
the listing with his son Will Kerr of
the same agency and Brian K.
Lewis (now of Compass).
Located in a full-service cooperative called
the Campanile on 52nd
Street, the three-bedroom, roughly 2,900square-foot unit overlooks
the East River and has a
formal dining room, library and
a living room with a balcony. The
home had much of Ms. Garbo’s artwork and furniture, as well as her pinkand-green color palette, intact; those
items weren’t included in the sale. “The
FLORIDA ESTATE
ASKS $22 MILLION
An ultramodern home designed to
look like a series of floating rectangles
is listing in Coconut Grove, Fla., for
$22 million.
The home is cantilevered on stilts,
allowing for a private outdoor dining
area at the base and providing 17 feet
of clearance from sea level in the event
of a flood, according to the listing
agent, Jorge Uribe of ONE Sotheby’s
International Realty. Designed by architect Kobi Karp, the property has a
rooftop terrace with a plunge pool and
a large waterfront deck with an approximately 61-foot pool for entertaining.
The 14,020-square-foot home has
five bedrooms, five bathrooms, a fivecar garage, a gym, a boat lift and a media room.
On WSJ.com: House of the Year
VOTING ENDS JAN. 2
apartment in many respects was much
as it was when she lived in it,” said
Woody Kerr.
Mr. Reisfield said the buyers are
Garbo fans who showed “a reverence
for my great aunt” and aren’t planning
to “gut” the apartment. “I think they’re
going to be great stewards,” he said.
—Candace Taylor
The property is owned by Dutch film
director and photographer Will Van Der
Vlugt. Living with his girlfriend and two
teenage children, he bought the site for
$4 million in 2011 and built the home
from scratch, public records show.
Mr. Van Der Vlugt said he is moving
south to the Florida Keys, where he is
in the midst of building yet another
contemporary home. He and his girlfriend plan to move there within 18
months, he said.
—Katherine Clarke
See more photos of notable
homes at WSJ.com/Mansion.
Email: privateproperties@wsj.com
These homes
are in the running
to be the House
of the Year, as
chosen by readers.
This 6,671-squarefoot home in Hilton
Head, S.C., top right,
was inspired by a Tuscan villa, from the
arched doorways to the
roofline. The waterfront
property also has a
guest cottage, gym,
boathouse and dock
with boat lift.
Spanning 17,522
square feet, this Georgian Revival-style mansion, bottom right, in Irvington, N.Y., is accessed
by a stone bridge. The
home includes a 2,500square-foot master suite
and a terrace overlooking
the Hudson River.
Pick your favorite at
WSJ.com/realestate.
PALM BEACH
ONE OF A KIND
SPECTACULAR
SPECTACULAR OCEAN
OCEAN TO
TO INTERCOASTAL
INTERCOASTAL
ESTATE
ESTATE
Where Leisure Becomes Legend
The best built & most unique custom home of its kind! Highest quality
finishes & features exclusive to this home. Soaring 10’ glass sliding
doors create simultaneous views & access to Ocean & Intercoastal.
Price upon request
Linda Gary 561-346-5880
DISTINCTIVE ARCHITECTURE, RESIDENCES & HOMESITES
BEACH & GOLF CLUBS I TENNIS I EQUESTRIAN
772.388.8400
W I N D S O R F LO R I DA . C O M
which controls what can be built in
the area, he said. He said he personally designed and oversaw construction of the estate, moving in with his
wife in 2014.
The asking price is high for the
region, which is on the other side of
the Santa Cruz mountains from Silicon Valley and is known primarily
for agriculture. Listing agent Dana
Cappiello of Sotheby’s International
Realty said the area is becoming
more popular with Silicon Valley
types. Homeowners in the area include activist and former hedge
funder Tom Steyer, who owns a
1,800-acre cattle ranch in Pescadero, according to his website, and
venture capitalist Vinod Khosla, who
owns a $32.5 million estate in
nearby Half Moon Bay.
Mr. Connet said he was selling
because his children are grown and
the home is too large for just him
and his wife.
—Katherine Clarke
201 Worth Avenue • Palm Beach, Florida 33480
Office: 1-561-655-6881 Email: Info@LindaAGary.com
www.LindaAGary.com
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After years of trying to sell their
unusual Palm Springs, Calif. compound, actress Suzanne Somers and
her husband Alan Hamel are auctioning off the multi-level hillside property.
The “Three’s Company” actress and
Mr. Hamel, a producer, listed the property several times in the past decade,
with prices ranging from $12.9 million
just outside downtown Palm Springs,
the property sits on about 73 acres
and includes five villas built at
various levels on the hillside
and reachable by a funicular. There are eight bedrooms spread across the
different villas, which are
clustered a few steps
away from each other on
the hillside. “It’s like a little
French village,” Mr. Hamel
said. Parts of the compound were
originally built roughly 100 years ago,
he said, but the couple has expanded
and renovated it over the years. The
living space of the villas combines to
approximately 7,300 square feet.
The couple, who bought the property in the 1970s, right around
the time they got married, built an
outdoor amphitheater. There is also a
two-bedroom caretaker’s home at the
foot of the hill.
Mr. Hamel, 81, said they are selling
because the property is too big for
them now that their children (Ms. Somers, 71, has one child from a previous
marriage and Mr. Hamel has two from
a previous marriage) are grown. “For us
it’s outlived its usefulness,” he said,
noting he and his wife plan to build another home on a roughly 20-acre property elsewhere in Palm Springs.
—Candace Taylor
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | M3
MANSION
THE MARKET
Where
Teardowns Sell
For Millions
For some Brooklyn buyers,
Ocean Parkway is the only option
Prospect
BY LISA SELIN-DAVIS
Detail
Flatbush Ditmas Park
Kensington
FIRST IMPRESSIONS
Homes along Ocean Parkway,
above and at left, are a mashup
of architectural styles. One
thing they have in common:
They’re large.
Borough
Park
Midwood
B R O O K LY N
Ocea
THOSE UNFAMILIAR with
Brooklyn’s Ocean Parkway
may be confused by its designation in 1975 as a “scenic
landmark” by New York
City’s Landmarks Preservation Commission.
Homes along this 6-mile
stretch of road range from
humble to haute, with modest single and multifamily
homes remodeled into a
mashup of architectural
styles, with limestone
quoins, stucco arches, stone
balustrades and Spanishtiled roofs. Yet the demand
for such homes—renovated
or not—is so intense that
most sell for top dollar via
private “pocket listings” or
word-of-mouth. Here, a teardown or an empty lot can
go for as much as $3 million, according to StreetEasy.com, a New York realestate listings website.
Almost all of the owners
belong to the tightly knit
Sephardic Jewish population. Because they can’t
drive on the Sabbath, they
have a much more acute
sense of location, location,
location than even the savviest real-estate shopper.
The closer they are to their
families, schools and synagogues, says Jack Sardar, a
real-estate agent with Madison Estates who represents
nearby properties, “the more
valuable the property. You
can go up one block and get a
$1 million discount.” People
will overpay, he adds, to get
anything on the block they
want, knowing they can renovate to suit later. “You’ll see
something sell for a crazy
number. To a certain point it’s
not worth it for anyone else.”
According to StreetEasy,
19 single-family houses have
sold for more than $1 million since 2010 and eight
sold for over $3 million
along this section of Ocean
Parkway; 47 multifamily
Sheepshead
Bay
Gravesend
Coney Island
homes sold for more than $1
million in that same time
frame and two vacant lots
sold for over $3 million.
Once a property sells, the
new owner may spend millions more on extensive renovations and modern upgrades. Up and down the
street, especially in Brooklyn’s Midwood and Gravesend neighborhoods, many
humble semi-attached single
and multifamily homes have
been reinvented and sometimes wildly reimagined into
bigger, bolder, more ornate
and elaborate iterations.
The buyers are intensely
private—all of those contacted for this article declined to be interviewed. Architectural designer David
Cohen is currently overseeing
two projects on Ocean Parkway and has worked on more
than 80 others on or near
the street, which runs north
to south from Prospect Park
to Brighton Beach. Today’s
buyer, he says, looks for “a
spin on an English- or Mediterranean-style house with
some modern elements and
contemporary transitional
features.”
Some clients want to
stand out: A few homes
would look more contextual
in Miami than Kings
County, with floor-to-ceiling windows amid white facades. One thing they all
have in common: the new
homes are bigger. The noise
of construction permeates
the street as contractors
push up and out, combining
two-family homes to one,
expanding dormered crawl
spaces into full-fledged
third stories and even
meshing two lots to build
homes as big as 9,000
square feet. According to
data provided by the New
York City Department of
Buildings, 35 homes along
Ocean Parkway have been
enlarged—some by more
than 5,000 square feet—
since 1995. Dozens more
have been similarly altered
on surrounding streets.
And while the phenomenon happens elsewhere in
these neighborhoods, it is
particularly remarkable
along Ocean Parkway itself.
The road—with benches,
paths and game tables
along it—was designed by
Central Park’s Frederick
Law Olmsted and Calvert
Vaux. In their preliminary
plans from 1866, Olmsted
and Vaux envisioned a road
“of a picturesque character…neither very straight
nor very level, and should
be bordered by a small belt
of trees and shrubbery.” In
a report submitted two
years later, Olmsted and
Vaux described a wide road
divided by a grassy median
for pedestrians and coined
it a “parkway,” with influences from boulevards in
Paris and Berlin. Construction began in 1874, and the
road opened in 1876, according to the Landmarks Preservation Commission. The median was split in 1894 to
create what is said to be the
first bike path in the U.S. In
the 1950s, about a half-mile
of the parkway was replaced
with the Prospect Express-
way; the commission’s designation prevented further
changes on the historic road.
Homes were first built on
the perimeter of the parkway
in the 1900s, especially after
World War I. Later, many of
these homes were subdivided into multifamily properties or replaced entirely
with apartment buildings.
The 1920s and 1930s single-family homes that survived into the 2000s are undergoing the greatest
transformations. “They were
nice homes, don’t get me
wrong,” said Brooklyn historian Ron Schweiger, who
grew up a block away from
Ocean Parkway. “But tearing
them down to the foundation
and building these mansions—they’re magnificent,
gorgeous homes.”
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Deer Valley Ski Resort which is consistently ranked #1 in guest service among ski
BRYAN DERBALLA FOR THE WALL STREET JOURNAL (4); MAP BY JASON LEE
resorts in North America, as rated by the readers of SKI Magazine. This spectacular
mountainscape residence can be enjoyed by all your guests through in-house year-round
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Co u r t K l e k a s • S h a r o n L i e s e • Pa u l B e n s o n | E n g e l & V ö l k e r s Pa r k C i t y
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©2017 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. Engel & Völkers and its
independent License Partners are Equal Opportunity Employers and fully support the principles of the Fair Housing Act.
All information provided is deemed reliable but is not guaranteed and should be independently verified. If your property is
currently represented by a real estate broker, this is not an attempt to solicit your listing.
BACK IN THE DAY Benches line the paths, top, along the parkway—designed by Frederick Law
Olmsted and Calvert Vaux in the late 1800s. Above, a Rolls-Royce.
.
THE WALL STREET JOURNAL.
M4 | Friday, December 29, 2017
MANSION
BEHIND A MIRACLE Selby Dunham, with her husband, Curt, below left, at their home in Bighorn Golf Club in Palm Desert, Calif. Ms. Dunham started a cancer charity.
Photo by Deborah Samuel from PUP, published by Chronicle Books www.chroniclebooks.com
THE PLEDGE
If you are ever trapped under a
ton of rubble, I promise to sniff you out.
I promise to be worth every cent of the $10,000
that it took to train me.
I promise to ignore all other more fascinating smells
and concentrate on the scent of live humans.
I promise to go about my work with a wagging tail,
even if my paws get sore.
I promise never to give up.
nect to charitable projects in
the area.
Tim Braheem, a 50-yearold business and life coach
in Thousand Oaks, Calif., is
an active home buyer and
philanthropist at the resort.
He built a house in the resort, sold it and bought a
townhouse, and now is
building another home
there, after which he plans
to sell the townhouse. Condominiums start at $1.8 million, home sites at $800,000,
and resale single-family
homes at $3.4 million, said
Manuel Ardon, chief operating officer of Peninsula Papagayo.
“I also have a home in
Malibu, where I’m surrounded by nothing but
elites,” Mr. Braheem said.
“It’s a gift to be so close to
people who need my help”
in Costa Rica.
This year, Mr. Braheem
and 19 clients who attended
a retreat he hosted as a
coach raised $23,000 for
Creciendo. Of that sum,
$15,000 went to the construction of a kindergarten
classroom, which Mr. Braheem’s group helped finish
and paint. In past years, he
has organized a group to finance a program to feed
schoolchildren with scarce
access to food on weekends
and holidays. The charity
helps coordinate efforts.
Mr. Braheem said the
chance to get to know local
Costa Ricans and give to
their community is one reason he continues to buy and
build homes in the resort.
At Bighorn Golf Club in
Palm Desert, Calif., its umbrella nonprofit, called Bighorn Golf Club Charities, encompasses a scholarship
program, a grant-giving organization and a cancer
charity. The latter group, Behind a Miracle, was
launched by resident Selby
Dunham in 2007 after she
recovered from breast-cancer treatment. In the past 10
years, BAM has raised $7.5
million, all donated to local
cancer organizations.
Initially Ms. Dunham, a
61-year-old retired office
manager for a construction
company, organized a group
of volunteers who lived in
the community, where
homes have resold for between $1.5 million and $12
million. They helped promote a golf tournament,
gathered sponsorships from
local businesses and held a
dinner and auction.
Today, club management
helps with much of the
work, offering a full-time
charity manager, plus the efforts of nine other members
of its staff, said Theresa
Maggio, marketing director
for Bighorn.
Developers can benefit
from the marketing and
community goodwill such efforts bring, as well as the
loyalty of residents who feel
deeply engaged with charitable programs.
One risk of orienting a
community around philanthropy is that residents can
grow tired of pleas for donations. Residents also should
do their own due diligence,
as with all such efforts, as to
how their money is being
spent by the charities. Their
personal accountant or tax
adviser can navigate IRS
rules on deductions for
charitable giving.
In 2008, while the Baileys
were living in a townhouse
they bought before building
their home at the Cliffs, “all
the time, the more people
you got to know, it was, ‘I’m
having a dinner party to
raise money for cancer, for
MS,’ ” she said. “We decided,
‘Let’s not drive each other
crazy or get to the point
where you’re avoiding your
neighbor.’ ”
In an overhaul, Ms. Bailey
became president of a group
that collects a $300 donation annually from residents
and stages one big Weekend
of Giving, with a clothing
drive, gala dinner, golf and
tennis tournaments, auctions and barbecue. The developer contributes auction
items such as golf packages,
the facilities where the
events are hosted, and discounted food and drink. This
year the group raised more
than $200,000.
JACK FLAME SOROKIN FOR THE WALL STREET JOURNAL
Continued from page M1
sonalities who had moved to
the Cliffs and found they had
extra time on their hands,”
said David Sawyer, president
of the Cliffs Clubs. Ms. Bailey, who is on the board of
directors of her local chapter, helps organize fundraisers and recruit local sponsors, while overseeing a
grant-giving board.
The real-estate industry
has long used charity as a
calling card, with agents often listing the groups they
support on their websites.
Developers also have tied
transactions to philanthropy,
pledging a percentage of
sales to a charity.
Now, some developments,
including golf communities,
resorts and condo buildings,
are taking the concept a step
further by facilitating residents’ active participation in
local charitable efforts.
Some approaches are relatively simple: At the RitzCarlton Residences Miami
Beach, set to open early
2017, Ricardo Dunin, founding partner of Lionheart
Capital, a real-estate development and investment firm,
plans a “sharing room.” Residents will be able to drop off
unwanted items at a location. There, other residents
can view them in person or
on an app before picking
them up. Or the items can
be sent to local charities by
the staff concierge. Condos
at the development cost
between $2 million and
$40 million.
Other efforts are elaborately structured to give
each resident the kind of
charitable experience they
desire. Peninsula Papagayo, a
gated resort community in
Costa Rica, has an on-site office of Creciendo Juntos
(Growing Together), a nonprofit that helps homeowners and hotel guests con-
LIZ KUBALL FOR THE WALL STREET JOURNAL (3)
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GIVING COMMUNITY The home of Donna and David Bailey in Arden, N.C.
.
THE WALL STREET JOURNAL.
Friday, December 29, 2017 | M5
NY
MANSION
HOUSE CALL | JOHNNY MATHIS
Chances Are He’d Be a Singer
The pop vocalist grew up laughing off bad breaks; today, he is rebuilding his L.A. home
I was born in Gilmer, Texas.
There wasn’t much opportunity
there for my father, Clem. So in
1939, he left Tina and me at my
grandmother’s house and drove
my mother, Mildred, my older sister, Marguerite, and my older
brother, Clem Jr., to San Francisco
to find work.
My pop was the most resourceful person I ever knew. When they
arrived in San Francisco, his car
broke down on Market Street. He
told my mom to watch the kids.
While they waited in the car, my
dad found a way to make some
money. A couple of hours later, he
returned and got the car fixed.
My parents moved into a basement flat on Post Street, in the
city’s Lower Pacific Heights section. Once they settled in, Tina
and I were put on a train in Texas
by a family friend and watched
over by someone on the train until
we arrived in San Francisco.
Our apartment had three rooms,
and the toilet was outside. I
shared a bed in one room with
Tina, and Clem had a bed to himself. Marguerite had her own
room. Later, my parents had Michael, Ralph and Linda.
My mom was the greatest. She
was quiet as a mouse but strong.
Dad called her Kitty because she
was as beautiful as a kitten. He
was so madly in love with her.
Both of my parents were domestic workers. My father loved
music, and singing took him into
his own little world. I found out
later that he had wanted to be a
professional singer but set that
aside to raise a family.
When I was 8, he bought a piano for $25. The first song he
taught me was “My Blue Heaven.”
Pop was my best pal and was the
first to see my promise.
I took piano lessons for a while
but never learned to read music.
My mind was elsewhere. Instead, I
trained my ear by listening to my
siblings’ pop and jazz records.
When I was 12, my father
thought we should find a vocal
teacher. We found
Connie Cox
through singer
Tony Martin’s
brother. My parents couldn’t afford lessons, so in
exchange I
cleaned Connie’s
house and ran her
errands. I did my
homework in a
corner of her studio as she taught
her paying students. That’s where I learned to
sing, listening in on their lessons.
Whenever she had a break, she’d
work with me.
Probably the biggest lesson
Connie taught me was to open my
throat so air could flow unrestricted over my vocal chords. She
ence. After my set, he
said he wanted to sign
me. I was stunned. Columbia had been a fantasy. When I signed, I
was happier for my father than for myself.
Today, I live in a
penthouse in Beverly
Hills. The view is
amazing, even though
I see mostly the tops
of buildings.
I moved in after my
house above Sunset
Plaza in West Hollywood caught fire in
2015. The cause was a
faulty electrical wire.
Now I’m having the
house rebuilt.
Fortunately, no one
was at the house taking care of it at the
time. I never liked
flaunting awards and
gold records at home,
so they were all safe at
my office. I did lose irreplaceable wardrobe
pieces.
Among the items
damaged was a portrait
of me painted by Ralph
Wolfe Cowan for the
MR. WONDERFUL Johnny Mathis in his Beverly Hills penthouse, above; with
cover of my “Heavenly”
his parents in the late 1950s, left; and in Texas in the late 1930s, top.
album in 1959. I was
able to have it restored.
celled at track and basketball in
said, “Your throat is
When I told Ralph what had
high school.
open to its fullest
happened, he painted a second one
I attended San Francisco State
when you yawn. Yawn
for me. This way, he said, I’d have
College on a sports scholarship
as much as possible
one for my apartment and one for
and ran hurdles and was a high
until you feel it.” That
the office.
jumper. I set a college record as a
worked.
—As told to Marc Myers
high jumper, clearing 6-foot-5.
I began by singing in boys’
Johnny Mathis, 82, is a pop singer
In college, I studied to be a
choirs. Each year at Christmas,
who was given the Grammy Lifeteacher, but singing was in my
we’d sing carols and holiday songs
time Achievement Award in 2003.
heart. I sang at events and parties,
at local department stores.
He recently released a 68-CD box
and began singing in clubs. One
At school, I can’t recall a single
set of his Columbia recordings,
night in 1954, at the Black Hawk,
incident of racism. I was accepted.
“Johnny Mathis: The Voice of RoColumbia Records’ producer
I was the president of the student
mance” (Sony Legacy).
George Avakian was in the audibody in junior high school and exJESSICA SAMPLE FOR THE WALL STREET JOURNAL (PORTRAIT); JOHNNY MATHIS/ROJON PRODUCTIONS (2, HISTORICAL)
I always wondered how I got the scar on my
right leg. Recently, my older sister, Tina, told
me. When I was little, my mother stacked the
kitchen chairs to mop the floor. I climbed to
the top and fell. On my way down, an exposed
nail in the wall caught my leg. I tend to forget
the bad things that happen to me.
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THE WALL STREET JOURNAL.
M6 | Friday, December 29, 2017
MANSION
JUMBO JUNGLE | ROBYN A. FRIEDMAN
WHEN HOUSE HUNTING,
SIZE MATTERS
TEMPTED
TO buy the
largest
house you
can afford?
More square
footage typically means more money—
and that means higher mortgage payments, taxes, utilities
and maintenance.
Young couples buying a
starter home are often
coached to get something
bigger than they need to anticipate a growing family.
Others think large homes
have better resale value.
“The biggest house isn’t
necessarily the best house or
even the best investment,”
says Mari Adam, a certified
financial planner in Boca Raton, Fla. “An older, smaller
home with a shorter commute, bigger lot or greater
remodel potential may appreciate more,” she says. “In
fact, many fancy new homes
can lose value quickly if a
developer builds newer
homes nearby, while older
areas may have more enduring land value.”
While it’s OK to plan for
future needs, the ultimate
decision should be based on
what you can realistically
afford.
Allow yourself some extra
room—a spare bedroom and
bath for guests or for a parent who might move in if
necessary in the future—but
don’t pay for extra rooms
that you will never use, says
Ray Rodriguez, regional
mortgage sales manager for
the Metro New York Market
for TD Bank. “You want
enough space to live comfortably, but you don’t want
to heat, clean and pay taxes
on space you aren’t utilizing,” he says.
According to the National
Association of Realtors, a
real-estate trade group, the
median size of an existing
single-family home purchased in 2017 was 1,930
square feet, down from 1,950
square feet in 2016.
For new construction, the
National Association of
Home Builders reports that
the median square footage of
a new single-family home in
Rather than
purchasing the largest
home you can afford,
think about how that
home fits into your
lifestyle.
2016 was 2,419, a slight decrease from 2,473 in 2015.
But while home sizes may
be trending down—likely due
to affordability issues—home
buyers aren’t particularly
fond of the “tiny-house”
trend. An online survey conducted in October of 1,019
Americans age 18 and older
by ValueInsured, a Dallasbased firm that offers home
buyers a product called
down-payment insurance,
found that 36% of those surveyed think people who purchase tiny homes are likely
to regret their decision.
Purchasing a house that’s
too big can also get in the
way of your retirement. Once
your children leave home,
you could end up living in—
and paying for—a McMansion that’s largely empty.
That will cost you more in
utility bills, property taxes,
insurance and repairs. Ms.
Adam, the certified financial
planner, estimates that a
moderately high-end home in
South Florida could cost
$100,000 or more to maintain each year, even with no
mortgage. A homeowner
would need $2.5 million in
assets to generate that income every year, she says.
Here are a few things to
consider when shopping for
a home:
• Consider trade-offs.
Rather than purchasing the
largest home you can afford, think about how that
home fits into your lifestyle.
“People like to travel more,
and they may decide they
don’t necessarily need a
massive house if it comes at
the expense of them being
able to go out and travel,”
says Patrick Ryan, senior
vice president and managing broker of Related Realty
in Chicago.
• Think small—and remodel. Another option is to
purchase an older or smaller
house and then create the
home of your dreams
through renovation. Mr. Rodriguez purchased a 2,000square-foot home built in the
1960s that was located in a
desirable neighborhood. “We
CHRIS GASH
The bigger the home, the more you’ll pay in utility bills, property
taxes, insurance and repairs (and the more you’ll have to clean)
knew going in that we would
have to renovate because it
didn’t have modern amenities,” he says. He saved
money for two years and
eventually added 1,400
square feet to the house, ultimately achieving the size
home he originally wanted
but couldn’t afford.
• Long-term returns. The
money saved in buying a
right-size home could pay
dividends in the future—literally. A $20,000 savings
each year over the life of a
30-year mortgage could result in a nearly $1.2 million
nest egg if invested in a
stock market portfolio earning 4% a year, Ms. Adam
says. The annual savings,
when compounded over
time, is likely to exceed the
appreciation in your home’s
value over the term of the
mortgage.
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THE WALL STREET JOURNAL.
Friday, December 29, 2017 | M7
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THE WALL STREET JOURNAL.
M8 | Friday, December 29, 2017
MANSION
RELATIVE VALUES
HOT PROPERTIES IN THE CALIFORNIA DESERT
BRANDON BEECHLER
FROM LEFT: PATRICK KETCHUM; DAVID BLANK
Luxury homes for sale in and around Palm Springs; an underground garage with a turntable to show a trophy vehicle
$1.6 million
Maracaibo Circle, Palm Springs
Three bedrooms, three bathrooms, one half-bath
This one-story, 2,567-square-foot modern home has an open
floor plan and views of the San Jacinto mountains. Built in 1998
and renovated in 2015, the house features a 30-foot section of
automated glass doors that open for indoor-outdoor living. The
patio includes a saltwater pool and a gas fire feature. The living
room has a gas fireplace. All bedrooms have bathrooms en suite.
Agent: Shane Wilson, Patrick Stewart Properties
$1.85 million
Via Roberta, Palm Springs
Four bedrooms, four bathrooms, one half-bath
This 4,085-square-foot, one-story contemporary home built in
2001 offers mountain views from the living room, which has a
fireplace. Additional fireplaces are in the master suite and great
room. The outdoor living area has patios and a blue ceramic-tile
pool with a hot tub. The property has a three-car, climate-controlled garage.
Agent: Shen Schulz, Sotheby’s International Realty
$5.5 million
Palm Desert
Four bedrooms, four bathrooms, one half-bath
This 2002 contemporary home with 7,528 square feet has a double-height living room with a wet bar and fireplace. Glass walls
look out to the mountains, and sliders open onto a putting green,
patio and pool. There is an underground five-car garage with turntable. Waterfalls are at the entrance. There is a wine grotto.
Agent: Sean Stanfield, HOM Sotheby’s International Realty
—Sandra Ward
ADVERTISEMENT
Distinctive Properties & Estates
To advertise: 800-366-3975 or WSJ.com/classifieds
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THE WALL STREET JOURNAL.
Friday, December 29, 2017 | M9
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THE WALL STREET JOURNAL.
M10 | Friday, December 29, 2017
ILLUSTRATION BY SANNA MANDER; FROM TOP: ALICE WHITBY FOR THE WALL STREET JOURNAL; JLL RESIDENTIAL PROPERTY (2); JOHN D WOOD & CO. (2)
MANSION
LONDON’S MOST ELITE STREETS
Continued from page M1
streets. “We are talking about a
pretty rarefied market,” he said.
“But for some people, London
prime real estate is an asset class
tantamount to gold.”
Research by estate agents
Hamptons International, which audited property transactions in London during the first three quarters
of 2017, found that Albemarle
Street topped the list of London’s
super streets with an average
home price of $19.02 million.
Located in the Mayfair neighborhood, Albemarle Street was
once a haunt of artists and writers. Brown’s Hotel, which opened
in 1837, was popular among writers such as Arthur Conan Doyle
(Sherlock Holmes) and J.M. Barrie
(Peter Pan). Most famously, it was
at the Albemarle Club in 1895 that
Oscar Wilde was accused of being
a “sodomite” by the Marquess of
Queensbury, a confrontation that
led to the playwright’s downfall.
More recently, Albemarle Street
has seen offices converted into
large lateral apartments. The five
homes at a development called
The Mellier have been selling since
2015 at asking prices of up to
$40.1 million for a 5,250-squarefoot penthouse.
Simultaneously, Trophaeum, the
company that owns about 60% of
the buildings on Albemarle Street,
has been “curating” its storefronts
to create “a new luxury lifestyle
location,” said Matt Farrell, director. This means the introduction of
international fashion brands, including Amanda Wakeley and
Thom Browne, as well as restaurants like Isabel, owned by society
restaurateur Juan Santa Cruz. Next
year, Robin Birley, whose father
Mark founded London’s celebrityfriendly Annabel’s nightclub, will
open a private members’ club on
Albemarle Street.
At second place on the list of
London’s super streets is Egerton
Crescent in South Kensington, half
a mile from the Harrods department store. The crescent’s roughly
30 white-plastered townhouses
have an average price of $18.24
million.
The street dates from the
1840s and has long been regarded
as one of London’s most exclusive
addresses thanks to its prime location and half-moon-shaped
communal garden. Estate agency
JLL is currently listing a threebedroom, three-bathroom house
for about $11.36 million. It features private front and backyards
and 3,052 square feet of living
space.
Jake Russell, director of Russell
Simpson estate agents, said homes
at the center of the crescent are
particularly prized because their
squared-off roofs mean larger topfloor rooms. Those just to the
northeast are also popular since
they have the largest backyards.
He credits the crescent’s popularity to its architecture: large
windows and high ceilings make
LUXURY LOCALE The Albemarle Club, above, a famous haunt of playwright Oscar Wilde. Today, developers on Albemarle Street have been ‘curating’ its storefronts to create ‘a new luxury lifestyle location.’
GREEN SPACE In Egerton Crescent
in South Kensington, a three-bedroom, three-bathroom house, above
and at left, is listed for about $11.36
million. It features private front and
backyards.
FOR SALE At the junction of Kensington Road and Rutland Gate, an apartment in a French Renaissance-style building,
left, is listed for about $7.35 million. In Phillimore Gardens, a 10-bedroom property, right, is priced at over $40 million
for beautifully airy rooms. Its location close to Harrods appeals to
Middle Eastern buyers, and its history attracts buyers from Europe
and North America.
These buyers also favor Phillimore Gardens, in Kensington,
where the average price is $14.75
million—third place on the list.
This sum would surely have astounded William Phillimore, scion
of a landowning family, who in
1779 inherited a parcel of land in
Kensington and decided to try his
hand at house-building. Over the
next century Phillimore and his descendants created a small network
of streets lined with elegant Italianate villas today known as the
Phillimore Estate.
In those early days the street
was aimed not at oligarchs and oil
royals, but squarely at the middle
classes. The census of 1861 records
several lawyers and doctors, a
dentist, several retired army officers and a smattering of artists
living there.
The street’s blockbuster sale
took place in 2008, when the
Ukrainian oligarch Victor Pincuk
spent a reported $106.88 million
on a property. Currently listed
with John D. Wood & Co. is a 10bedroom, 12,260-square-foot property priced at over $40 million.
Nearby is Kensington Road,
where average prices stand at
$13,708,100, No. 4 on the list. The
street runs along the south side of
Kensington Gardens and Hyde Park,
and is close to Kensington Palace.
Richard Barber, director of residential agency at JLL, suspects
that its success is due to its heavy
concentration of large apartments.
“In Prime Central London, some
things have plummeted and some
seem to be virtually bulletproof,”
he said. “It is very idiosyncratic.
But in very general terms, tall,
thin houses with no lifts have gone
down, and lateral apartments have
gone up.”
Even on Kensington Road, Mr.
Barber said values vary wildly between different buildings.
A sought-after building—which
will have excellent park views, impressive architecture and large lateral apartments of around 3,000
square feet—could sell for as much
as $3,700 per square foot. In less
sought-after buildings, however,
prices hover at around the $1,500
to $2,400 per square foot mark,
said Mr. Barber.
Currently listed, at the junction
of Kensington Road and Rutland
Gate, is an apartment in a French
Renaissance-style building, with
views toward the park. The property, built in 1899, has four bedrooms, three bathrooms and 2,529
square feet of living space. It is
listed with John D Wood & Co. for
about $7.35 million.
While these four streets have
documented prices of a minimum
of £10 million, in reality London
may well have several more super
streets.
Streets where no homes have
been sold during 2017 were, by necessity, excluded from the research. And those sold through a
company shell, a popular technique for overseas buyers anxious
to maintain their privacy, aren’t
recorded.
Mr. Russell believes these super
streets demonstrate that while
London’s prime property market
has had a subdued three years,
with prices falling since late 2014,
a truly “best in class” property
will still sell for a premium.
“Normal stock has had a bad
couple of years, but the best of the
best, something which comes up
very rarely, is still performing as
well as it did in 2014,” he said.
“The only difference is that it
might take a bit longer to sell.”
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