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The Wall Street Journal March 1 2018

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A Farewell and High Honors at the Capitol for ‘America’s Pastor’
What’s
News
Business & Finance
ershing Square is ending its crusade against
Herbalife. The company’s
stock, which activist investor Ackman said would fall
to zero, hit a new high. A1
Ackman’s fund has taken
a stake in United Technologies, joining other activists
in the industrial sector. B3
P
Spotify cemented plans
for its IPO in a filing that revealed sharp sales growth
but ballooning losses at the
music-streaming firm. B1
Bank of America fired
two employees as it expands a probe of potential
sexual misconduct in its
prime brokerage unit. B1
American rejected aspects of expansion plans for
Chicago’s O’Hare airport,
saying they favor United. B3
Bayer said it is preparing
to sell more assets to win
antitrust approval for its
purchase of Monsanto. B3
Steel and aluminum executives were told that
curbs on imports could be
announced Thursday. A3
China’s Baidu filed for
an IPO in the U.S. of its iQiyi
video-streaming unit. B4
World-Wide
Trump backed a Senate
proposal to expand background checks on gun sales,
as he continued to seek a
legislative response to the
Florida school shooting. A1
Students returned to the
classroom at the Parkland,
Fla., high school where a
gunman killed 17 people. A6
Walmart and Dick’s will
stop selling guns to those under 21, tightening their policies after the shooting. A6
Hicks is resigning from
her post as White House
communications director,
marking the exit of one of
Trump’s closest aides. A1
Sessions rebutted Trump
after the president criticized him for referring a
probe to the Justice Department’s inspector general. A4
Afghanistan’s president
offered to recognize the Taliban as a legitimate party if
the group agrees to a truce
and enters peace talks. A11
A New York regulator
asked several banks for information about their ties to
Kushner and his finances. A4
Manafort’s trial for alleged money laundering and
other charges was scheduled for mid-September. A4
May rejected an EU plan
to create a customs border
between Northern Ireland
and the rest of the U.K. A9
China has launched an effort to silence critics of a proposal that would let Xi extend his rule indefinitely. A10
German authorities were
investigating a security
breach of the government’s
computer network. A9
CONTENTS
Business News...... B3
Capital Account.... A2
Crossword.............. A16
Heard on Street. B12
Life & Arts...... A13-15
Management.......... B5
Markets............. B11-12
Opinion.............. A17-19
Sports........................ A16
Technology............... B4
U.S. News............. A2-6
Weather................... A16
World News A9-11,20
>
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
Trump Confidante to Step Down
Hope Hicks will resign
from White House role
after recent tumult
boosted her profile
election campaign before joining him as director of strategic
communications.
In September, she was
tapped to serve as communications director, becoming the
fourth person to hold that role
in the administration’s first
year. Over Mr. Trump’s first 13
months in office, she has become his closest aide who isn’t
a family member, according to
several officials.
Ms. Hicks, 29 years old, told
the president in recent weeks
that she wanted to leave the
White House to explore outside opportunities, according
to a White House official. Ms.
Hicks informed the president
Wednesday that she planned
to resign.
BY REBECCA BALLHAUS
AND PETER NICHOLAS
WASHINGTON—Hope Hicks,
White House communications
director, said Wednesday she
is resigning, marking the departure of a presidential confidante and longtime lieutenant
from the West Wing.
Ms. Hicks has been one of
President Donald Trump’s longest-serving aides, handling
most of the communications
responsibilities for his 2016
Treasurys Lose Foreign Allure
The rising costs of currency hedges are hurting the appeal of U.S.
Treasurys for international investors, despite the increase in yields.
That could hit an important source of demand for the bonds. B1
The extra return foreign investors get above their countries' bonds
when buying a 10-year Treasury and hedging currency risk.
2.0 percentage points
1.5
1.0
She doesn’t yet have a departure date but is expected to
leave in the coming weeks.
“There are no words to adequately express my gratitude
to President Trump,” Ms. Hicks
said in a statement. “I wish the
President and his administration the very best as he continues to lead our country.”
In a statement, Mr. Trump
called Ms. Hicks “outstanding”
and “as smart and thoughtful
as they come.”
Her exit leaves Mr. Trump
Please see HICKS page A4
Trump, Sessions tussle over
Russia probe.............................. A4
Kushner’s ties to banks
scrutinized................................... A4
Manafort trial date set........ A4
President
Says He
Wants
Action
On Guns
Justin Beghly sold stocks in
early 2017 on a hunch that
Donald Trump’s presidency
would be bad for markets.
That was a call he came to regret and later waded back in.
By Christina Rexrode,
Akane Otani
and Lisa Beilfuss
–0.5
–1.0
–1.5
–2.0
2008 ’09
’10
’11
’12
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
Source: Thomson Reuters
Oscar Fans Try Watching All 59
Nominated Movies—Even the Duds
i
i
i
‘Completists’ brave snowstorms, fire
alarms, long drives; $300 on popcorn
BY ELLEN GAMERMAN
the ceremony airs.
Oscar completists, as they
Oscar fanatic James A. Mol- are known, must see all 59 feanar spends a good part of every ture-length and short films up
winter chasing down hard-to- for awards this Sunday night.
find Academy award nominated That means all the nominees in
films, zipping to theaters every category, ranging from
around Ohio in his dark blue best supporting actor to sound
Mazda with the limixing to makeup
cense plate OSand hairstyling. EvCARS.
ery winter, these
“As a kid I just
fans fill darkened
loved the pageantry
theaters,
bleary
of the Oscars, and
from back-to-back
that dovetailed into
screenings, squintme loving movies,”
ing at spreadsheets
says Mr. Molnar, a
to mark what’s left
31-year-old digital
to see, eating popcorn at 9 a.m. and
media
specialist
James A. Molnar
calling it breakfast.
from Toledo who
They
pursue
has two Oscars, a
$300 fake one at home and a these films for the joy of ungolden replica tattooed on his likely discoveries, the thrill of
right hip. Each year for the past the hunt and, of course, bragdecade, he has attempted to see ging rights—once sought alone
Please see OSCARS page A12
every Oscar nominee—before
Hope Hicks has been one of Mr.
Trump’s longest-serving aides.
In a meeting with lawmakers
at the White House, Mr. Trump
also dashed conservative hopes
that he would support a move
now for gun owners who legally
carry concealed firearms in one
state to carry them in the other
49 states, a long-sought goal of
the National Rifle Association.
And he bucked Republican orthodoxy by suggesting the swift
removal of guns from people
who are potentially mentally ill,
as he continued to seek a legislative response to the deaths of
17 people at a Parkland, Fla.,
high school two weeks ago.
Major corporations aren’t
waiting around for the policy
debate to get resolved, taking it
upon themselves to change the
rules around gun buying. Walmart Inc. and Dick’s Sporting
Goods Inc., two of the biggest
gun retailers, said Wednesday
they would no longer sell any
firearms to anyone under 21
years old, a shift that some activists have called for but risks
alienating many of their core
customers.
The president opened the
Please see TRUMP page A6
Walmart and Dick’s tighten
their gun-sales policies........ A6
Florida students return........ A6
New push for research ....... A6
Investors’ Overriding Fear:
Missing Out on Stock Rally
0.5
0
LEAH MILLIS/REUTERS
The U.S. economy rose at
a 2.5% annual rate in the
fourth quarter, slightly lower
than initially estimated. A2
YEN 106.67
By Louise Radnofsky,
Kristina Peterson
and Natalie Andrews
SOMBER SALUTE: The Rev. Billy Graham, who died last week at age 99, lay in honor in the Capitol Rotunda on Wednesday. President Donald
Trump led mourners at the ceremony and praised the evangelist as ‘an ambassador for Christ who reminded the world of the power of prayer.’
U.S. stocks fell as investors weighed the impact of
higher rates on the market.
The Dow slid 380.83 points,
or 1.5%, to 25029.20. B12
EURO $1.2194
WASHINGTON—President
Donald Trump backed a Senate
proposal to expand background
checks on gun sales Wednesday,
as part of a call for a sweeping
overhaul of U.S. gun policy in
the wake of the Florida school
shooting.
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
The SEC has issued dozens of subpoenas and information requests to tech
firms and advisers in the
cryptocurrency market. B1
HHHH $4.00
WSJ.com
THURSDAY, MARCH 1, 2018 ~ VOL. CCLXXI NO. 49
* * * * * *
So when stocks tumbled in
early February, Mr. Beghly sat
tight, not wanting to repeat
his mistake.
“It’s a terrible thing to try
to time the market,” said the
40-year-old resident of Fayetteville, Ark.
Plenty of other everyday investors thought the same. For
Ackman
Retreats
From Bearish
Herbalife Bet
BY DAVID BENOIT
William Ackman is ending
his crusade against Herbalife
Ltd., in what amounts to a
bruising defeat in one of Wall
Street’s longest-running, most
expensive and acrimonious
fights.
The activist investor has
largely exited his $1 billion,
five-year bet against the nutritional products company,
sources familiar with the matter said.
It isn’t clear how much Mr.
Ackman’s Pershing Square Capital Management LP lost, but it
is likely in the hundreds of millions. Herbalife stock, which
Mr. Ackman contended would
go to zero, hit a new high of
nearly $96 Wednesday on the
Please see BET page A10
Ackman buys stake in United
Technologies............................... B3
them, fear of missing out on
the next leg of the bull market
still outweighed fears of a big
correction.
The market’s gyrations the
past month shocked many of
these investors, coming after a
long period of calm and
steadily rising share prices.
Early in the month, the S&P
500 and Dow Jones Industrial
Average both fell into correction territory—marked by a
10% decline from their most
recent highs—while the latter
experienced its biggest-ever
intraday point swing.
Calm on the part of many
everyday investors may have
helped share prices rebound.
By the end of the month the
S&P and Dow had rebounded
by 5.1% and 4.9%, respectively,
from their Feb. 8 lows and are
now down just 5.5% and 6%
from their Jan. 26 highs. Both
indexes are also up year to
date, after briefly pulling into
negative territory early on.
Stock markets on Wednesday took a late-session tumble
with the Dow Jones Industrial
Average falling 380.83 points,
or 1.5%, to close the month at
25029.2. That left the bluechip index down about 4% in
February, breaking a 10-month
winning streak.
Please see FEAR page A2
Stocks down for month after
surge at year’s start............ B12
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THE WALL STREET JOURNAL.
A2 | Thursday, March 1, 2018
U.S. NEWS
CAPITAL ACCOUNT | By Greg Ip
Forces That Could Revive Inflation Are Lurking
Inflation is
going to head
up this year—
on that there
isn’t much debate. The real
debate is over whether it
will be a nonevent or something more ominous.
The Federal Reserve and
most of Wall Street think it
will be a nonevent. But there
is a plausible scenario in
which it marks a new, dangerous trend. Even if you think it
unlikely, you need to give this
scenario serious thought because trillions of dollars of investments are geared to inflation being dead.
Unemployment in the last
year has sunk to a 17-year
low, yet inflation continues to
run below the Fed’s 2% target. Abroad, it is the same
story: In Germany and Japan
unemployment is at multidecade lows but inflation remains stuck below 2%.
This disconnect is one
reason Fed officials devoted
much of their late January
meeting to discussing what
drives inflation.
Ironically, wage and price
data firmed soon after. The
“core” consumer-price index
excluding food and energy
rose 1.8% in January from a
year earlier and should soon
top 2% as favorable readings
from a year ago drop out of
the 12-month calculation.
The Fed focuses on a different gauge which is running
lower, at 1.5%. But some
economists think it, too,
could hit 2% this year.
That 1960s Show
In the 1960s, inflation reared up as unemployment stayed low.
8%
7
Consumerprice index*
6
5
T
he consensus is that inflation will then level
off, in great part because the public has come to
expect 2% inflation and
should set prices and wages
accordingly. This is a sound
and persuasive base case. But
multiple forces are now at
work that could, together,
keep it going up. The most
important is that unemployment at today’s low levels has
over the postwar period typically coincided with rising
price pressure. Second, a big
tax cut and a federal-spending boost are about to juice
the economy and potentially
push unemployment even
lower. A falling dollar and rising oil prices are feeding
through to other costs.
On top of these short-term
factors, several structural
forces are at work, as a recent report from BCA Research, a Montreal-based investment advisory, shows.
4
Unemployment
rate
3
2
1
0
1960
’62
’64
’66
*Annual percentage change
Sources: Bureau of Labor Statistics via Federal
Reserve Bank of St. Louis
One is protectionism. Global
trade rose faster than global
output from the early 1980s
until the global financial crisis. Trade held down prices
and wages by exposing American workers and firms to intense foreign competition.
Globalization has since gone
into reverse, and protectionist
pressures are mounting:
Americans can expect to pay
more for washing machines
and softwood lumber and
perhaps soon anything con-
’68
THE WALL STREET JOURNAL.
taining steel or aluminum because of tariffs imposed by
President Donald Trump.
Productivity growth, the
usual antidote to rising
costs, is tepid and could stay
that way.
If inflation turns up, economists have long assumed it
would do so slowly, giving the
Fed plenty of time to respond.
But Michael Feroli of J.P. Morgan notes this assumption is
built on models in which the
world behaves in a predict-
Welcome
Back,
Neighbor
GENE J. PUSKAR/ASSOCIATED PRESS
A statue of the late
Fred Rogers, a
Pittsburgh-area
native, returns to the
city’s Tribute to
Children monument,
which is being
renovated. The
‘Mister Rogers
Neighborhood’ host
died 15 years ago
this week.
FEAR
Continued from Page One
Investors did pull a record
amount of money out of mutual funds and exchangetraded funds that track stocks
at the beginning of February.
But they withdrew less the following two weeks, according
to EPFR Global, a fund-tracking firm. That suggested an
initial rush out of stocks
quickly subsided.
Although institutional investors dominate stock trading, how individual investors
react to market moves is important for overall market sentiment as well as the flow of
funds into and out of different
asset classes held in mutual
funds, retirement accounts and
employer-sponsored programs.
Many of those investors,
though, find themselves stuck
with today’s market, despite
worries that valuations have
become stretched. Although
interest rates have begun to
rise—that was one factor that
recently hurt share prices—
they remain low enough that
government and corporate
bonds are considered expensive and cash isn’t much of an
alternative.
Matt Phillips, a retired cardiologist in Austin, Texas, said
that in 2008 he fretted over
the market while his wife,
Sherry, remained sanguine.
This time, they have reversed
roles.
At her urging, Dr. Phillips
called their financial adviser
when the market started to
spiral down in early February
but was told the best course of
action was to do nothing. He
heeded the advice.
The 61-year-old said he prefers the risk that the couple’s
investment balances might
shrink than the certainty that
they would stagnate if the
holdings were moved to cash.
“If you took it out, what
would you do with it then?”
Dr. Phillips said. “The only op-
Looking Ahead
Share of individual investors who think the stock market will rise over
the next six months
60%
50
40
Average since 1987
30
20
10
0
2016
’17
’18
Note: Data based on weekly surveys.
Source: American Association of Individual Investors
tion is to leave it in and hope
for the best.”
The danger is that individual investors become complacent, which could leave them
less prepared for some big
market move.
Risks of complacency are
potentially amplified by a
broader shift in investor behavior. Over the past decade,
investors have veered from active stock picking to passive
investing, buying baskets of
stocks and other investments
that seek to match an index’s
returns rather than trying to
beat the market.
A more passive approach
can also be a benefit, though,
and helped some investors to
avoid being reactive. Barbara
James, a 50-year-old romance
writer in New York, said she
panicked during the 2008
crash and sold stocks when the
market was falling, missing
out on the rally that began in
2009.
This time around, she kept
her money in stocks and
makes a conscious effort to
not check her accounts as often. “Now I just look when I
know the markets went up,”
she said.
Surveys, too, suggest the recent volatility has done little
to damp investor optimism for
long-term gains. The week after the S&P 500 fell into cor-
THE WALL STREET JOURNAL.
rection territory, 49% of investors told the American
Association of Individual Investors that they thought
stocks would rise over the next
six months, up from 37% the
week before.
Even so, individual investors aren’t as upbeat about
stocks as at the heights of previous stock rallies, like before
the tech bubble burst in March
2000 or during the run-up to
the 2007 housing crisis. To investors who believe bull markets wither when euphoric investors begin taking extreme
risks, the current, relatively
contained level of enthusiasm
is a positive.
One reason investors are
likely feeling upbeat: They
are sitting on years of gains.
This gives many a different
perspective on sudden market
moves.
Anna Howard, who teaches
engineering at North Carolina
State University in Raleigh,
said she was skeptical of January’s surge in share prices,
which took major indexes to
levels many analysts had
forecast for year-end.
“January was too hot, too
fast,” she said. “It felt like
funny money.”
Despite that, and the prospect of having to probably
liquidate some holdings due
to a child starting college
later this year, Dr. Howard
left her investments untouched. She held fast, too,
when markets then fell.
“My funds are about where
they were in October, but it’s
hardly the end of the world,”
she said. “Now if they start
being where they were in October of 2012, then I’m going
to be unhappy.”
Even Mr. Beghly, who is
studying for a master’s degree in education, is feeling
pretty calm. He used the dip
to buy shares of Facebook
Inc.
“I know there are ups and
downs and that’s to be expected,” he said.
CORRECTIONS AMPLIFICATIONS
Sky PLC’s profit for fiscal
year ended June 30, was $959
million at Tuesday’s exchange
rate. A footnote in a graphic
with a World News article
Wednesday about the company’s American suitors incorrectly said it was $959 billion.
Howard Hughes Corp. controls master planned communities that total about 80,000
acres, and much of that land
has been sold to home builders. A Property Report article
Wednesday about the company
incorrectly
said
Howard
Hughes owns all of the land.
Naveen Jain is an entrepreneur in Seattle. A Journal Report article Monday about dietary advice based on gut
bacteria incorrectly said Mr.
Jain was a Silicon Valley entrepreneur.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
able, linear way. In fact, he
says, the world isn’t linear
and inflation can change suddenly: It “is sluggish and
slow-moving, until it isn’t.”
A
case in point: In 1966,
inflation, which had
run below 2% for
nearly a decade, suddenly accelerated to over 3%. Some of
the circumstances echo the
present: unemployment had
slid to 4%, taxes had been cut
and federal spending for the
Vietnam War and Lyndon
Johnson’s “Great Society”
programs was surging.
Deutsche Bank economists
note the budget deficit
jumped by more than 2% of
gross domestic product between 1965 and 1968, similar
to what they project between
2016 and 2019. Except in recessions, stimulus of this size
“is unprecedented outside of
these two episodes.”
The effect of an overheating economy was then compounded by policy errors. Fed
Chairmen William McChesney
Martin Jr. and Arthur Burns
were too optimistic about
how low unemployment
could go without pushing
prices higher, and succumbed
to pressure from Mr. Johnson
and then Richard Nixon to
keep interest rates low. From
1966 to 1981, inflation and interest rates climbed to double digits, decimating stock
and bond values.
Some on Wall Street
worry Mr. Trump, who treats
the stock market as a report
card on his presidency, will
similarly pressure Fed Chairman Jerome Powell. So far,
this seems unlikely: Mr.
Trump and his officials have
asserted the Fed’s independence, and no central banker,
including Mr. Powell, is
about to relinquish it.
Yet even without politics,
the Fed faces clamor to replace or relax its 2% inflation
target. Advocates say higher
inflation and thus higher interest rates provide more
room to cut when the next
recession hits. But inflation
doesn’t have to top 4%, much
less 10%, to wreak havoc: a
world in which inflation
risks persistently point up
instead of down would drive
bond yields higher and kick
the support out from under
stock and property values.
This scenario seems remote. But if you had given
inflation up for dead, it is
prudent to consider the consequences if it turns out to
have only been sleeping.
Economic Growth
Weaker Than Thought
BY SARAH CHANEY
WASHINGTON—U.S. economic growth was slightly
weaker than initially thought
during the fourth quarter and
may be cooling a bit in the
first quarter as well.
Gross domestic product, a
broad measure of the goods
and services produced across
the U.S., rose at a 2.5% seasonally and inflation-adjusted annual rate in the fourth quarter,
the Commerce Department
said Wednesday. The agency in
January estimated last quarter’s growth rate at 2.6%.
The government’s estimate
of output was reduced because
companies drew more from
their inventories than previously estimated, meaning they
had less to produce. Business
investment also was slightly
weaker than initially reported,
growing at a 6.6% rate last
quarter versus an originally
reported 6.8%.
The inventory drawdown
could fuel restocking later in
the year that leads to more
production. Still some analysts
have moved down their forecasts for first-quarter growth
in recent weeks after reports
showing sluggish retail sales
and durable-goods business
orders.
The Federal Reserve Bank
of Atlanta, for example, has
shifted its forecast for firstquarter growth from 5.4%
growth down to 2.6% since
Feb. 1. Forecasting firm Mac-
roeconomic Advisers projects
a first-quarter growth rate of
1.8% as of Wednesday. That
would be slower than growth
rates exceeding 3% in the middle of last year.
Joel Prakken, Macroeconomic Advisers’ chief U.S.
economist, said its first-quarter growth projections are soft
because it is factoring in unusually high snowfall in recent
weeks, which is associated
with restrained economic
growth. Its estimate also takes
into account the tendency for
first-quarter growth to be
weaker than other quarters.
“We’re looking for much
firmer growth in the middle
part of the year and the last
half of the year,” he said.
Weather has affected restaurant chain Potbelly Corp.,
which saw same-store sales
decrease 2.4% in the fourth
quarter from the same period
a year earlier. “The early
[2018] trends are not as
strong as fourth-quarter
trends,” said Michael W.
Coyne, Potbelly’s chief financial officer, in a call with analysts on Friday. “What wasn’t
planned for was that we had
substantially worse weather
this year than last.”
U.S. policy makers and
many analysts remain optimistic about the full-year outlook,
which is bolstered by tax cuts
at home and stronger conditions overseas.
—Josh Mitchell
contributed to this article.
Slower Growth
GDP, annualized quarterly change
6%
Q1 forecasts:
Atlanta Fed
Q4: 2.5% GDPNow: 2.6%
Goldman
Sachs: 2.3%
Barclays: 1.9%
Macroeconomic
Advisers: 1.8%
4
2
0
–2
2011
’12
’13
’14
Note: Adjusted for inflation and seasonality
Source: Commerce Department
’15
’16
’17
’18
THE WALL STREET JOURNAL.
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Thursday, March 1, 2018 | A3
* * * * *
U.S. NEWS
ROBERT RAY/ASSOCIATED PRESS
shop.hamiltonwatch.com
A doctor and nurse consult inside a room used for flu patients at Northside Hospital in Cumming, Ga., earlier this year.
States Diverge on Health Policy
BY STEPHANIE ARMOUR
Democratic and Republican
states are moving in opposite
directions on health policy,
leaving people with starkly divergent options for care depending on where they live.
President Donald Trump’s
administration and congressional Republicans, by easing
many of the Affordable Care
Act’s nationwide requirements
after failing last year to repeal
the entire law, are effectively
turning major components of
health policy over to the states.
About half of the states in
the U.S., which are controlled
by Republican politicians, are
moving aggressively to roll
back the 2010 law widely
known as Obamacare, while a
smaller number of Democratic
states are working to bolster it.
As a result, the health-care
options in any given state are
likely to depend on which party
controls the statehouse. That
dictates access, cost and coverage, particularly for the roughly
17 million people nationwide
who buy their own insurance
and the 29 million people who
lack it entirely.
Increasingly, state health-
Coverage Gap
Most insured people who don’t
recieve health care from a job or
the government buy plans on the
Affordable Care Act exchanges.
Insurance bought on ACA exchanges
10.3 million
Insurance bought off the exchanges,
complies with ACA requirements
5.1
Insurance bought off the exchanges,
does not comply with ACA
2.1
Source: Kaiser Family Foundation
THE WALL STREET JOURNAL.
care policy reflects the ruling
party’s goals. In Democraticcontrolled California, a patient
with a costly medical condition
may likely get relatively affordable premiums, while a young,
healthy and self-employed professional could pay more. In
Republican Texas, the sicker
patient will likely do less well
or go without coverage, while
the younger, healthier one will
have less-comprehensive options that may cost far less.
“You’re seeing red and blue
states moving further from
each other,” said Sam Richardson, a health economist at Boston College. “You’re going to
have blue states hang on to
what they can. For red states,
the more they can dismantle
Obamacare, the more they’ll
look like before Obamacare.
They’ll have higher rates of uninsured, but other innovations.”
This divergence reflects a
seismic rollback of an effort advanced by the Democratic administration of former President Barack Obama to promote
a more standardized, nationwide health system.
Mr. Obama’s signature
health law sought to have the
healthy help cover the costs of
the sick and the poor; it has led
to about 20 million people
gaining health coverage. But
Republicans have long balked
at the law’s idea of taxing
higher earners to pay for health
care and have opposed the
law’s mandate that most individuals who don’t get insurance
through their job or through a
government program get coverage or pay a penalty.
The divergence has existed
for years. Eighteen largely GOP
states never accepted federal
money to expand Medicaid under the law. But now it is widening, with GOP states seeking
work requirements in the program, and that gap is also accelerating in the individual insurance market.
After congressional Republicans tried repeatedly last year,
unsuccessfully, to repeal the
health law, they did repeal the
individual mandate, beginning
in 2019.
Meanwhile, the GOP president’s administration has
worked to take apart the law
piecemeal.
One proposal would allow
the type of less-comprehensive
health plans limited under the
law. Another would let businesses and some individuals
band together in associations
to get non-ACA-compliant
plans.
Those actions, along with a
willingness to impose new requirements on Medicaid, have
emboldened Republican-led
states to further undercut the
law they have long opposed
and raised alarm in Democratic
states, where lawmakers are
pre-emptively looking to buttress the law from any GOP policy changes.
KHAKI X-WIND
AUTOMATIC SWISS MADE
TIMEPIECES OF DISTINCTION
Steel Import Curbs Could Come Soon
BY JACOB M. SCHLESINGER
WASHINGTON—The Trump
administration has summoned
steel and aluminum executives
on short notice for a White
House meeting on Thursday,
telling some of them that an
announcement could be made
then on long-awaited curbs on
steel and aluminum imports in
the name of protecting national
security, according to people
familiar with the matter.
These people said that executives from companies in the
two industries had been invited to the White House for a
midday meeting with President Donald Trump, and that
Mr. Trump and some of his advisers were hoping to use that
event to announce broad tariffs or quotas.
Other people involved in the
discussions, however, said that
the new policies hadn’t been
completed as of Wednesday
night, and that the session
could just turn into a meeting
to discuss possible alternatives.
The official White House
schedule released shortly after
9 p.m. made no mention of a
meeting or an announcement.
Thursday’s meeting be-
tween the president and the
manufacturing
executives
comes two weeks after the
Commerce Department released the results of a study
launched last April looking at
whether steel and aluminum
imports pose a threat to American defense, by reducing U.S.
capacity to make key materials
for military equipment, and
whether that threat could justify new import curbs under a
little-used 1962 trade law
The study, conducted in
consultation with other agencies, concluded that those imports undermine American
military needs and laid out
three options for Mr. Trump to
consider for each industry:
global tariffs, global quotas or
a more targeted approach focused on a handful of exports
seen as most responsible for
hampering U.S. industry.
One person familiar with
the internal deliberations said
that Mr. Trump has favored
imposing broad, across-theboard tariffs hitting countries
around the world, though certain countries could be spared
through exemptions.
—Bob Tita in Chicago
contributed to this article.
L.U.C LUNAR ONE
N ew Yo r k | B al H ar bou r S h ops | B r ick ell C it y C en t re
S ou t h C oas t P laz a | Wy n n H ot el & Res or t
R iv er O ak s D is t r ict
1 - 8 0 0 - C H O PA R D www.ch opard .com / u s
ISAIA
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THE WALL STREET JOURNAL.
U.S. NEWS
Sessions Hits Back After Trump Insult
Attorney general is
‘tired’ of his boss’s
treatment, an
associate says
“Why is A.G. Jeff Sessions
asking the Inspector General to
investigate potentially massive
FISA abuse. Will take forever,
has no prosecutorial power…
Why not use Justice
Department lawyers?
DISGRACEFUL!”
BY DEL QUENTIN WILBER
AND ARUNA VISWANATHA
President Trump, in a tweet Wednesday
“As long as I am the Attorney
General, I will continue to
discharge my duties with
integrity and honor, and this
Department will continue to do
its work in a fair and impartial
manner according to the law
and Constitution.”
Jeff Sessions, in a statement later in the day
Staff Turnover
Under Trump
A chief of staff, press
secretary, three
communications directors and
a Health and Human Services
secretary are among the
senior officials who have left
the Trump administration.
“It seems the president was
seeking to wade into internal
and sensitive matters,” one person said. “It went too far.”
Another person close to Mr.
Sessions said he was simply fed
up by Mr. Trump’s “childish
lashing out.” “He is tired of it,”
the second person said. “He just
said, ‘Stop it. Fire me if you
want. I’m not resigning.’ He also
strongly believes the institution
of the Justice Department
needs to be protected.”
The White House declined to
elaborate on Mr. Trump’s tweet
Anthony Scaramucci
Communications director
JULY 31, 2017
Kushner Bank Ties Probed
Steve Bannon
Chief strategist
AUG. 18, 2017
Carl Icahn
Special adviser to
the president
AUG. 19, 2017
Mike Flynn
National security adviser
FEB. 13, 2017
Sebastian Gorka
National security adviser
AUG. 25, 2017
Craig Deare
National Security Council,
senior director for Western
Hemisphere affairs
FEB. 18, 2017
Tom Price
Health and Human Services
secretary
SEPT. 29, 2017
Katie Walsh
Deputy chief of staff
MARCH 30, 2017
James Comey
FBI director
MAY 9, 2017
FROM TOP: BLOOMBERG NEWS; ASSOCIATED PRESS; REUTERS
didn’t believe that getting into a
public spat with Mr. Trump
would quell the president’s outrage, the associates said. Mr.
Sessions felt a better course
was to try to please his boss by
touting Mr. Trump’s achievements, they said.
People close to Mr. Sessions
said Mr. Trump’s Wednesday
tweet crossed a line for the attorney general, who believed
Mr. Trump was trying to assert
direct control over the Justice
Department’s established protocols and procedures.
Dina Powell
Deputy national security
adviser
DEC. 8, 2017
Rick Dearborn
Deputy chief of staff
DEC. 22, 2017
K.T. McFarland
Deputy national security
adviser
MAY 29, 2017
Omarosa Manigault Newman
Director of communications,
Office of Public Liaison
JAN. 20, 2018
Mike Dubke
Communications director
MAY 30, 2017
Andrew McCabe
FBI deputy director
JAN. 29, 2018
Sean Spicer
Press secretary
JULY 21, 2017
Rob Porter
Staff secretary
FEB. 7, 2018
Derek Harvey
Senior Middle East director,
National Security Council
JULY 27, 2017
Josh Raffel
Deputy communications
director
FEB. 27, 2018
Reince Priebus
Chief of staff
JULY 28, 2017
Hope Hicks
Communications director
FEB. 28, 2018
gating whether Trump associates colluded with Russia’s
efforts to interfere in the
2016 U.S. election. Mr. Trump
has denied collusion, and
Moscow has denied election
meddling. In her interview,
asked whether she had ever
lied for Mr. Trump, Ms. Hicks
said she had told certain
“white lies” but hadn’t deceived anyone about anything
related to the Russia probe.
As an example of the sorts
of untruths she has told, she
mentioned telling someone
whom Mr. Trump didn’t wish
to see that he was too busy to
meet. Another example she
discussed was spinning certain
developments in the most favorable light possible. Republicans on the panel said the
questioning from the Democratic side was a ploy to undercut her credibility.
—Michael C. Bender
contributed to this article.
or respond to Mr. Sessions’
statement.
The person said that Mr. Sessions has also come to realize
that trying to please Mr. Trump
with public comments hasn’t
cooled the president’s ire.
As recently as Tuesday, Mr.
Sessions hailed the president’s
“strong leadership” in battling
opioid abuse, and he has consistently referred to his tenure at
the Justice Department as being part of the “Trump era.” On
Feb. 22, Mr. Sessions devoted
most of his brief remarks at a
BY EMILY GLAZER
AND ERICA ORDEN
The New York State Department of Financial Services asked several banks for
information about their relationships with Jared Kushner
and his finances, people familiar with the information
requests said.
The department, which
regulates New York banks and
some international banks that
do business in the state, sent
inquiries last week to firms
that include Deutsche Bank
AG and Signature Bank,
these people said. Mr. Kushner is President Donald
Trump’s son-in-law and a senior adviser to the president.
The inquiries, which are
expansive and comprehensive, seek information about
Mr. Kushner’s individual finances and those related to
his family’s real-estate company, Kushner Cos., these
people said.
The inquiries ask for information from banks about
their relationships with Mr.
Kushner, including his bank
accounts and loans, they said.
A Deutsche Bank spokeswoman declined to comment,
as did a spokesman for the
MANDEL NGAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
planned to recuse himself.
A week ago, Mr. Trump began a meeting attended by Mr.
Sessions by saying, “I also
want to thank a really tremendous attorney general.” He
turned to the person next to
him: “That’s Pam Bondi, from
Florida.” Ms. Bondi is Florida’s
state attorney general.
Mr. Sessions, a former Alabama senator and one of Mr.
Trump’s earliest supporters,
largely shrugged off the earlier
criticisms as typical of Mr.
Trump’s personality. He also
HICKS
Continued from Page One
with few aides with whom the
president has a longstanding
relationship.
Mr. Trump’s first year in office has seen the departure of
more than a dozen top aides,
including a national security
adviser, a chief of staff, three
communications directors, one
chief strategist and a press
secretary. Josh Raffel, the
spokesman for senior White
House adviser Jared Kushner
and a deputy communications
director, said Tuesday he
planned to step down in the
coming weeks.
Ms. Hicks, who for the most
part kept a low profile in the
White House, has faced scrutiny in recent weeks over her
personal relationship with Rob
Porter, the former White
House staff secretary who resigned amid allegations of domestic abuse by his ex-wives,
which he denied. The White
House faced widespread criticism for its response to the allegations, and Mr. Trump privately placed some of the
blame on Ms. Hicks, White
House officials said—surprising people inside the West
Wing because he has rarely
criticized her.
White House chief of staff
John Kelly called Ms. Hicks
“strategic, poised and wise beyond her years.”
Mr. Kelly in recent months
had frequently asked others
about what they thought of the
performance of Ms. Hicks and
other top communications officials. Some tensions had existed
between the two as a result of
Ms. Hicks’s close relationship
with the president, people familiar with the matter said.
One of the names that has
been discussed internally as
Ms. Hicks’s successor is Mercedes Schlapp, a deputy communications director who has
been handling strategic planning for the press office.
News of Ms. Hicks’s resignation was first reported by
the New York Times.
On Tuesday, Ms. Hicks
spent nearly nine hours before the House Intelligence
Committee, which is investi-
FROM TOP: ASSOCIATED PRESS; ERIN SCHAFF/POOL/EPA-EFE/REX/SHUTTERSTOCK
WASHINGTON—President
Donald Trump has spent
months chastising Jeff Sessions,
questioning why his attorney
general wasn’t investigating
Hillary Clinton, criticizing his
recusal from an investigation
into Russia’s meddling in the
2016 campaign and describing
him as “beleaguered.”
Mr. Sessions didn’t respond
publicly to the insults, instead
praising his boss. But Wednesday the attorney general rebutted Mr. Trump after the president scolded him for his
decision to refer a probe of the
Justice Department’s handling
of secret surveillance warrants
to the agency’s inspector general, the usual venue for such
allegations, rather than another
office.
“Why is A.G. Jeff Sessions
asking the Inspector General to
investigate potentially massive
FISA abuse,” Mr. Trump
tweeted. “Will take forever, has
no prosecutorial power. and already late with reports on
Comey etc. Isn’t the I.G. an
Obama guy? Why not use Justice Department lawyers? DISGRACEFUL!”
“As long as I am the Attorney General, I will continue to
discharge my duties with integrity and honor, and this Department will continue to do its
work in a fair and impartial
manner according to the law
and Constitution,” Mr. Sessions
responded. Inspector generals
are appointed by the president,
but don’t automatically change
with each administration.
Mr. Trump’s displeasure
with Mr. Sessions dates back to
the attorney general’s March
2017 decision to remove himself from any investigations
into the 2016 election, which
included the probe into Russian
meddling and its links to
Trump campaign. The president
said in July 2017 he wouldn’t
have named Mr. Sessions to the
post if he had known he
White House round table to
praising the president’s meeting
with school shooting survivors,
parents and teachers a day earlier, adding that his schoolteacher wife also found the
event to be moving.
Mr. Trump’s tweet followed a
disclosure by Mr. Sessions on
Tuesday that the Justice Department’s inspector general,
Michael Horowitz, would examine how the FBI and federal
prosecutors obtained warrants
from the nation’s secret surveillance court to spy on a former
Trump campaign foreign-policy
adviser who had previously
been targeted by Russian intelligence for recruitment.
Mr. Horowitz was appointed
to the post by former President
Barack Obama in 2011. He was a
lawyer in private practice at the
time, and had previously
worked as a federal prosecutor
for 11 years, including as chief
of the public corruption unit in
the U.S. attorney’s office in
Manhattan. He was also appointed by President George W.
Bush to the U.S. Sentencing
Commission, where he served
for five years.
Allegations of wrongdoing by
Justice Department personnel
are generally first referred to
the inspector general, because
that office reports both to Congress and to the department,
giving it a degree of independence that the rest of the
agency doesn’t have, said Michael Bromwich, who served as
inspector general in the 1990s.
In a memo released in February, House Republicans said
Justice Department and Federal
Bureau of Investigation officials
had improperly obtained a warrant from the Foreign Intelligence Surveillance Court to spy
on a onetime Trump campaign
adviser.
The White House has denied
any collusion between Russia
and the Trump campaign took
place, and the ex-adviser hasn’t
been accused of wrongdoing.
Moscow has denied meddling in
the U.S. election.
Democrats on the committee
on Saturday released their own
memo rejecting any contention
that law-enforcement agents
had partisan motives.
—Julie Bykowicz contributed
to this article.
A New York state regulator is seeking information from several
banks about the president’s son-in-law, Jared Kushner, center.
state regulator. A lawyer for
Mr. Kushner didn’t respond to
requests to comment.
A spokeswoman for Kushner Cos., Christine Taylor,
said, “We have not received a
copy of any letter from the
New York State Department
of Financial Services.”
“Prior to our CEO voluntarily resigning to serve our
country, we never had any
type of inquiries,” Ms. Taylor
said. “These type of inquiries
appear to be harassment
solely for political reasons.”
A spokeswoman for Signature, a New York-based bank
that lends primarily to private businesses and affluent
individuals in the New York
area, said it doesn’t “confirm, deny or comment on
any correspondence with
regulators.” The Kushner
family and Kushner Cos.
have been clients since 2010,
she said.
Manafort’s Trial Date Is Set
BY DEL QUENTIN WILBER
WASHINGTON—Paul
Manafort, President Donald
Trump’s former campaign
chairman, will face trial in
mid-September on charges of
conspiring against the U.S.,
conspiring to launder money,
and failing to register as an
agent of a foreign power, a
federal judge said Wednesday.
The Sept. 17 date was set
by U.S. District Judge Amy
Jackson in Washington’s federal court during a hearing at
which the longtime political
consultant pleaded not guilty
to new charges special counsel Robert Mueller unveiled
last week.
Mr. Manafort has also been
charged separately by Mr. Mueller’s prosecutors in U.S. District
Court in Alexandria, Va., on tax
and bank-fraud counts. He is
scheduled to be arraigned Friday on those charges.
In both cases, Mr. Manafort
is accused of seeking to avoid
paying taxes on millions of
dollars in income he earned
for work on behalf of
Ukraine’s government and a
pro-Russia political party.
The dual indictments,
which enumerate different
charges for jurisdictional reasons but contain many of the
same underlying allegations,
accuse Mr. Manafort of seeking to hide more than $30
million of income by laundering it with the help of a business associate through offshore accounts.
That associate, Rick Gates,
pleaded guilty on Friday to
two charges in a deal with Mr.
Mueller’s team, admitting he
conspired against the U.S. in
efforts to launder money for
Mr. Manafort. He also admitted to making a false statement to Mr. Mueller’s prosecutors and FBI agents during
an interview session on Feb. 1.
Mr. Gates is cooperating
with Mr. Mueller’s team and
would likely testify at any
trial of Mr. Manafort.
—Aruna Viswanatha
contributed to this article.
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A5
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A6 | Thursday, March 1, 2018
THE WALL STREET JOURNAL.
* *
U.S. NEWS
Big Retailers Raise Age for Gun Buyers
Walmart, Dick’s won’t
sell firearms to those
under 21 after the
Parkland, Fla., deaths
Walmart Inc. and Dick’s
Sporting Goods Inc. said they
would no longer sell guns to
anyone under 21 years old, as
two of the country’s biggest
gun sellers tightened their
policies in the wake of a highschool shooting that left 17
people dead in Parkland, Fla.
By Sarah Nassauer,
Austen Hufford
and Zusha Elinson
Both retailers said Wednesday they were making the
change in light of the tragedy.
“We take seriously our obligation to be a responsible seller
of firearms,” Walmart said in a
statement.
Walmart, which sells rifles,
shotguns and ammunition in
thousands of its stores, had
stopped sales of assault-style
rifles in 2015. Earlier on
Wednesday, Dick’s said it
would raise its minimum age
for gun buyers and stop selling assault-style rifles at its
Field & Stream chain, which
has 35 locations.
Calls to ban high-capacity
firearms and raise the minimum age to buy a firearm
have been partly rekindled by
students and survivors of the
mass shooting in Florida. The
policy changes come at a time
when U.S. firearm sales have
cooled.
Under current law, licensed
gun dealers can sell a handgun
to someone 21 years old and
sell a rifle to someone who is
18. President Donald Trump
and Florida Gov. Rick Scott
have expressed support for
raising the age limit for rifle
sales, but the National Rifle
Association has rejected any
such move as a violation of
the Second Amendment.
On Wednesday, Mr. Trump
threw his weight behind a
Senate proposal to expand
background checks on gun
sales, as part of a call for a
sweeping overhaul of U.S. gun
policy in the wake of the Florida school shooting.
The National Shooting
Sports Foundation, a firearmsindustry association, said it
was disappointed by Dick’s decision and called on Congress
to immediately pass legislation designed to improve
background checks for gun
style weapons, as being modern sporting rifles.
Semiautomatic guns fire
bullets as fast as the shooter
can pull the trigger. More-traditional hunting rifles generally don’t use high-capacity
magazines and some aren’t
semiautomatic. The bolt-action rifle, for instance, requires the shooter to manually
move the bolt handle between
each shot.
Retailers that still sell
AR-15 models and similar
weapons include Bass Pro
Shops, which also owns the
Cabela’s outdoors chain, and
Academy Sports & Outdoors.
“We are strongly committed to ensuring the legal, safe
and responsible transfer of
firearms,” said a spokeswoman
for Katy, Texas-based Academy, which has stores in 16
states. The retailer supports
the background-check bill now
proposed in Congress, she said
Wednesday.
Bass Pro Shops didn’t respond to requests for comment.
Firearm sales, which surged
in recent years amid concerns
about possible restrictions being enacted under Democratic
administrations, have slumped
since Mr. Trump’s election.
Trigger Point
Some retailers in recent years have stopped selling certain guns or raised age limits to buy others.
RETAILER
Dick's Sporting Goods
Field & Stream*
NUMBER OF
U.S. STORES
HANDGUNS**
RIFLES
AR-15
HIGH-CAPACITY
STYLE RIFLES
MAGAZINES
BUMP
STOCKS
719
Yes
21 and up
No‡
No
No
35
Yes
21 and up
No
No
No
Alaska only
21 and up
No***
No
No
Walmart
4,662
Cabela's†
78
Yes
18 and up
Yes
Yes
No†††
Bass Pro Shops
77
Yes
18 and up
Yes
Yes
No
Academy Sports & Outdoors
240
Yes
18 and up
Yes
Yes
n.a.
Big 5 Sporting Goods
435
No
18 and up
No††
No††
No
37
Yes
18 and up
Yes
Yes
No
Mills Fleet Farm
Announced Wednesday *Owned by Dick’s **Federal law 21 and up †Owned by Bass Pro Shops ‡Since 2012 ***Since 2015
†††Since 2017 ††Since 2016
Source: the companies
THE WALL STREET JOURNAL.
purchases. The so-called FIX
NICS bill has run into hurdles
in Congress. The NRA, the
most prominent gun-rights
group, didn’t respond to a request for comment.
Dick’s disclosed Wednesday
that it had sold a shotgun to
accused Parkland, Fla., killer
Nikolas Cruz in November,
though it wasn’t used in the
shooting. The gunman used an
AR-15 model rifle, which is a
semiautomatic rifle that allows the user to fire rapidly
and use high-capacity magazines. Earlier in February, police in Vermont also arrested
and charged an 18-year-old
who had allegedly bought a
shotgun at Dick’s and planned
to attack a school.
Pittsburgh-based
Dick’s,
which operates about 800
stores, had previously ended
sales of assault-style rifles at
its flagship Dick’s stores following the 2012 deadly elementary-school shooting in
Newtown, Conn.
The retailer said Wednesday it would stop selling highcapacity magazines at all its
stores and advocate for more
stringent gun laws. The company will continue to sell rifles
and shotguns. The changes
took effect Wednesday.
“We were so disturbed and
saddened by what happened,
we felt we really needed to do
something,” Dick’s CEO Edward Stack told “Good Morning America” on Wednesday.
There is no agreed-upon
definition of an assault-style
weapon in the U.S. Those arguing for stricter gun laws often point to military-style
semiautomatic rifles that can
be fitted with high-capacity
magazines like the AR-15
model, which has been used in
several mass shootings. The
gun industry describes the
AR-15 model and other semiautomatic rifles, such as AK-
Studies Sought
On Gun Violence
Supporters say the provision ensures that the agency
doesn’t become enmeshed in a
contentious political issue.
“That’s what basically most
members feel about a government agency—[that it] would
not use government funds to
push one agenda over another,” said Rep. Robert Aderholt (R., Ala.), a senior member
of
the
House
Appropriations Committee
who said he backs retaining
the restrictions.
But in the wake of the Parkland, Fla., high-school shooting, some centrist House Republicans argue it no longer
makes sense to retain the provision.
Rep. Ryan Costello, a Republican up for re-election in
a competitive district in the
Philadelphia suburbs this fall,
said he supported resuming
the CDC’s gun research to “allow an objective lens to aggregate all that data and come up
with some sort of working hypothesis.”
“I think that should be
done,” Mr. Costello said.
On Wednesday, Rep. Tom
MacArthur (R., N.J.) sent a letter to the House Judiciary
Committee leaders urging
them to instruct federal agencies to “conduct a comprehensive scientific study of the
causes of gun violence.”
Since its initial passage, the
Dickey Amendment has been
renewed in the spending bills
Congress passes to keep the
government operating. Now
its critics are pressing to strip
it from a sweeping spending
bill that Congress must pass
before the government’s current funding expires on March
23.
MIKE STOCKER/SOUTH FLORIDA SUN-SENTINEL/ASSOCIATED PRESS
WASHINGTON—For more
than 20 years, federal law has
effectively halted the government’s ability to research gun
violence. Now, the shooting
that killed 17 at a Florida high
school in February has
prompted a bipartisan group
of lawmakers to take another
look at the restrictions.
By Kristina
Peterson, Betsy McKay
and Stephanie Armour
A large law-enforcement presence was on hand Wednesday as students came back to Marjory Stoneman Douglas High School.
Students Return Uneasily After Shooting
For the first time since a
gunman killed 17 people at a
Parkland, Fla., high school two
weeks ago, students and teachers returned to the classroom
Wednesday morning, voicing
both fear and relief to be back.
Outside Marjory Stoneman
Douglas High School, a large
contingent of law-enforcement
officers stood watch, some
handing out flowers to students.
Parents and supporters greeted
students, many wearing T-shirts
that read, “MSDStrong.”
A makeshift memorial overflowed with flowers, balloons
and American flags. Posters
vowing “#NeverAgain” and
banners sent by schools and organizations around the U.S.
adorned fences.
TRUMP
Continued from Page One
hourlong televised round table
with Republican and Democratic
legislators by saying he backed
a joint proposal from Sens. Joe
Manchin (D., W.Va.) and Pat
Toomey (R., Pa.) that would expand background checks to all
sales online and at gun shows,
with some carve-outs.
The president encouraged
both sides to pitch other preferred changes, from tougher
restrictions on the most powerful weapons to greater communication between school and
law-enforcement officials to try
to prevent prospective shootings. Several lawmakers called
on him to take the lead to ensure that effective change takes
place after repeated failed attempts following previous mass
shootings.
“If this meeting ends up with
just sort of vague notions of future compromise, then nothing
will happen,” said Sen. Chris
Murphy (D., Conn.). “Mr. President, it’s going to have to be you
that brings the Republicans to
the table on this.”
“I like that responsibility,”
On campus, Building 12—the
freshman building where the
attack unfolded—was silent,
locked down and fenced off.
“It was a lot more tough
than I thought it was going to
be,” said Austin Jay, an 18-yearold senior, after classes let out.
In his English class, in which
one of the victims who died
had sat near him, the teacher
began class by saying, “I love
you guys,” then broke down in
tears, Mr. Jay said. Students
got up to hug and comfort her,
he said.
Sofie Whitney, an 18-yearold senior, said returning to
the school was therapeutic. “I
think being together is really
important for everybody,” she
said. “We’re not doing any academics, just being around everyone and feeling like family.
At least for me, it felt good.”
After two emotionally grueling weeks marked by a succession of funerals, rallies calling
for tighter gun restrictions and
near-daily revelations about
the ample warning signs involving the accused gunman,
19-year-old Nikolas Cruz, students at Stoneman Douglas are
beginning a long, complicated
process of recovery.
“It’s a week of transition, a
week of folks coming together,
reconnecting
and
going
through the healing process,”
said Robert Runcie, superintendent of Broward County
Public Schools, ahead of Stoneman Douglas’s reopening.
In preparation for the return
to class, facilities workers
power-washed the school,
made repairs and replaced bro-
Mr. Trump replied.
The president told the senators and representatives that he
wanted them to merge many of
those ideas—each of which has
faced its own challenges on
Capitol Hill—and that he was
confident they could rally 60
Senate votes, which would be
needed for legislation to pass,
and a majority of House lawmakers. “It would be so beautiful to have one bill that everybody could support,” he said.
He went on to tell Sen. John
Cornyn (R., Texas), seated to his
right, that he wanted to see the
passage of a bill by Mr. Cornyn
that would strengthen the existing background-check system by
reducing glitches in reporting
data to it. By itself, the bill is
relatively uncontroversial; Democrats have said they are reluctant to back it only because they
worry that it would forestall
other measures.
“It would be nice if we could
add everything on to it,” Mr.
Trump proposed.
“If we can get 60 votes for it,
Mr. President, I’m all for it,” Mr.
Cornyn replied. “I think you
can,” Mr. Trump said.
Some lawmakers afterward
signaled that they didn’t share
the president’s confidence, with
Democrats saying they doubted
the president’s words would
yield immediate results, and
several key Republicans saying
they remained opposed to the
Manchin-Toomey legislation
that the president said he favored.
“I thought the president was
very candid, so we’ll see what
comes of it,” said Sen. Dianne
Feinstein (D., Calif.). Asked if
she was concerned that nothing
would happen, she smiled and
said, “I’m not going to say
that—but of course.”
Mr. Trump has staked out
positions on controversial issues in the past, only to surprise
some lawmakers with an apparent change of heart later. Sen.
Dick Durbin (D., Ill.) on Wednesday recalled a recent meeting at
the White House focused on immigration, in which the president had said he was open to
signing any sweeping immigration-overhaul bill that Congress
sent him, and pledged to offer
lawmakers political cover, before rejecting bipartisan proposals as nonstarters.
“My advice is: Hope for the
best, don’t be surprised if he
changes his mind in 24 hours,”
Mr. Durbin said.
The Manchin-Toomey bill
ken glass. They developed a
temporary-relocation plan for
classes previously housed in
Building 12, which the district
is considering leveling.
To increase security on campus, some school resource officers will be armed with rifles, a
decision announced last week
by Broward County Sheriff
Scott Israel.
“I’m a little scared going
back,” said Diego Pfeiffer, an
18-year-old senior, before the
start of class. “I’ll see the
empty desks of the people I
used to sit next to” who died,
including a friend in his literature class. “But I’m also excited
to go back because that community really understands what
I’m going through,” he added.
“So it’s the worst place to be,
but the best place to heal.”
SHAWN THEW/EPA/SHUTTERSTOCK
BY ARIAN CAMPO-FLORES
As lawmakers tangle over
other gun-violence prevention
measures, Democrats and
some centrist Republicans are
pushing to eliminate a provision tucked into spending bills
that has restricted the Centers
for Disease Control and Prevention’s ability to conduct research on the topic.
“It’s such a small part, but
such an essential part of the
whole fight against guns,” said
Rep. Nita Lowey of New York,
the top Democrat on the House
Appropriations Committee,
who has long pushed to eliminate the provision, known as
the Dickey Amendment.
The 1996 amendment—
backed by the National Rifle
Association, according to medical journals—prohibits the CDC
from using funds to advocate
for or promote gun control.
The language in the measure
didn’t expressly prevent scientific research, but it was ambiguous and drew close scrutiny to the agency. After the
amendment passed, Congress
redirected away $2.6 million—
the amount the agency had
used to research gun violence
and prevention. As a result, the
CDC has sharply curbed its research into gun violence.
President Trump threw his support behind a bill co-sponsored by
Democratic Sen. Joe Manchin, left, on gun background checks.
narrowly failed in the Senate in
2013, falling six votes short of
the 60 needed to advance. Currently, federal law requires the
checks only for sales by federally licensed dealers, though
some states have added their
own requirements.
“I’m not inclined to vote for
it now unless it’s part of a
broader package of things that
are better for the country than
what we have now,” Sen. Marco
Rubio (R., Fla.) said, though he
didn’t offer a specific element of
that broader package that
would satisfy him. “None of
these shootings were conducted
by someone who bought a gun
at a gun show or a parking lot.”
Mr. Cornyn also said he
wasn’t ready yet to merge his
bill with the broader ManchinToomey legislation. “I just need
to go back and reacquaint myself with Manchin-Toomey,” he
told reporters. “The details are
important.”
Mr. Manchin was among
those who told Mr. Trump that
his leadership would be vital to
the success of any effort:
“There’s not a person in West
Virginia that believes that
you’re not going to defend their
Second Amendment rights.”
Mr. Trump asked Mr. Toomey
why the bill didn’t include a
provision that would prevent
18-, 19- and 20-year-olds from
buying rifles. “You know why?
Because you’re afraid of the
NRA, right?” Mr. Trump asked
Mr. Toomey, who instantly said
that wasn’t at issue.
“The vast majority of 18-, 19-,
and 20-year olds in Pennsylvania who have a rifle or a shotgun, they’re not a threat to anyone.
They’re
law-abiding
citizens. They have that because
they want to use it for hunting
or target shooting, and to deny
them their Second Amendment
right is not going to make anyone safer,” Mr. Toomey said.
Mr. Trump also deviated
from many Republicans when
he appeared to cite support for
state legislation that gives authorities and courts more legal
channels to strip firearms from
gun owners flagged as dangerous to themselves or others.
Mr. Toomey later said he
particularly opposed that idea,
telling reporters, “You have to
have due process before you
take people’s property.”
—Michael C. Bender
contributed to this article.
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A7
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Thursday, March 1, 2018 | A9
THE WALL STREET JOURNAL.
WORLD NEWS
U.K. Spurns EU on Irish Border Proposal
Prime Minister May
blasts plan to create
customs frontier that
ignores island’s divide
By Laurence Norman
in Brussels and Paul
Hannon in London
An EU document laying out
proposed divorce terms with
the U.K. created a firestorm on
Wednesday by proposing a
common economic area on the
island of Ireland after Brexit.
It would leave Northern Ireland subject to some EU taxes
and to a broad swath of EU
rules in areas such as agriculture, state aid and the environment, effectively dividing
Northern Ireland’s economic
rules from the rest of the U.K.
Mrs. May sharply rejected
the proposal, telling the House
of Commons it would “threaten
the constitutional integrity of
the U.K. by creating a customs
and regulatory border down
the Irish Sea. No U.K. prime
minister could ever agree to it.”
The proposal, a first legal
draft described by the EU as
fall-back option in the absence
of workable alternatives from
the U.K., is designed to avoid
the creation of such a border
on the island of Ireland.
It appeared calculated to
NORTHERN
IRELAND
IRELAND
100 km
SC OT LAND
N o rt h
S ea
Irish
Sea
WALES
Celtic
Sea
U.K.
E NG LA ND
London
THE WALL STREET JOURNAL.
DAVID YOUNG/PA WIRE/ZUMA PRESS
British Prime Minister Theresa May rejected a new European Union proposal that
would create a customs border
between Northern Ireland and
the rest of the U.K., accusing
Brussels of trying to undermine “the constitutional integrity” of Britain after the country leaves the bloc.
100 miles
Atlantic
O ce a n
European Union and U.K. politicians fear a new border could threaten Ireland’s fragile peace. Above. the Irish border near Newry.
force Mrs. May to spell out
how the U.K would keep to its
agreement to let goods flow
freely between the north and
south. The U.K. leader, who
has so far been vague on how
to resolve the issue, is scheduled to give a major speech on
Brexit on Friday.
With just over a year to go
before Britain leaves the bloc,
Ireland, the only EU member
with which the U.K. shares a
border, has emerged as a central problem in the Brexit
talks, almost derailing negotiations on the U.K.’s separation
from the bloc in December before the two sides decided to
leave the question open.
It has been so far impossible to reconcile the absence of
a hard border with Mrs. May’s
pledge that the U.K. will leave
the EU’s customs union and its
single market of goods and
services. Politicians from both
sides fear a new border could
threaten the fragile peace on
the island.
British Foreign Secretary
Boris Johnson accused the EU
due to begin after an EU summit
in March. The U.K. is scheduled
to leave the EU in March 2019.
Under the EU’s proposal,
economic rules in Northern
Ireland would remain broadly
aligned with Ireland. This option would put Northern Ire-
The Irish issue is particularly sensitive for the prime
minister because her minority
government needs support
from the Democratic Unionist
Party, a Northern Irish group
that strongly resists any separation of Northern Ireland
from the rest of the U.K.
The proposal is “an utterly
preposterous suggestion,” said
Nigel Dodds, deputy leader of
the DUP. “We didn’t leave the
EU to oversee the breakup of
the United Kingdom.”
The Irish government also
faces a difficult balancing act.
It believes the introduction of
a border threatens a return to
three decades of violent conflict over Northern Ireland
that was effectively ended by
the 1998 Good Friday Agreement. But it doesn’t want to
‘[The EU proposal would] threaten the
constitutional integrity of the U.K.’
U.K. Prime Minister Theresa May
of using the Irish issue to try to
keep the U.K. in the single market “so we can’t leave the EU.”
The pound fell 0.6% to
$1.3820 Wednesday, weakened
by concerns that differences
could delay the onset of talks on
a post-Brexit transition deal,
land inside the EU’s customs
union, while the rest of the
U.K. leaves it, in effect creating
a customs border in the Irish
Sea. It would also mean EU
courts would have a key role
in overseeing the application
of EU rules in the province.
endanger a relationship with
Britain that has since then
been the most cordial in a
long and troubled history.
Dublin on Wednesday said
it would prefer something
other than the option proposed by the EU. However, Simon Coveney, Ireland’s deputy
prime minister, said Mrs. May
has been pursuing “incompatible” objectives.
“If the British government
wants to solve this issue, we
have to see an approach that
allows for trade between the
EU and the U.K. that doesn’t
require borders,” he told Irish
state-owned broadcaster RTE.
Michel Barnier, the EU’s
chief Brexit negotiator, said
the EU wasn’t trying to provoke a political crisis or interfere in British constitutional
arrangements.
“This draft text contains no
surprise for our British counterparts....It includes the position of the union which was
already known,” he said, adding that Brussels awaited U.K.
proposals on alternative solutions.
—Jason Douglas in London
contributed to this article.
BY WILLIAM WILKES
BERLIN—German authorities said on Wednesday they
were investigating a security
breach of the government’s
highly protected computer
network.
The country’s intelligence
agencies were examining attacks on more than one government ministry, the interior
ministry said, adding that the
affected departments had been
informed and that the attack
had been isolated and brought
under control.
Earlier on Wednesday, the
German news agency DPA reported that German security
services had discovered a
breach of the government’s IT
network in December and
traced it back to state-sponsored Russian hackers.
The interior ministry declined to comment on the DPA
report.
German companies have
been the target of sustained
attacks by state-sponsored
hackers, mainly believed to be
Chinese.
In 2015, the Bundestag, parliament’s lower house, suffered an extensive breach,
leading to the theft of several
gigabytes of data by what German security officials believe
were Russian cyberthieves.
Hackers believed to be part
of the Russia-linked APT28
group sought to infiltrate the
computer systems of several
German political parties in
2016, Germany’s domestic intelligence agency said that
year.
Russian officials have rejected accusations of involvement in either attack.
While there was widespread
speculation that embarrassing
emails or information harvested in those attacks could
be leaked to damage the repu-
MARKUS HEINE/NURPHOTO/ZUMA PRESS
German Government Network Was Breached Eurozone
Inflation
The Chancellery in Berlin, where several ministries were affected.
tation of German officials
ahead of the 2017 federal election, no such leaking took
place.
Intelligence officials have
said the intense media focus
on the hacking of the Democratic National Committee in
the U.S. may have deterred
leaks of the German information and emails.
Trump Aides Court Unions,
Democrats in Nafta Revamp
U.S. Trade Representative
Robert Lighthizer and aides
have been consulting with
American unions and congressional Democrats over the past
few weeks to assemble new
proposals aimed at boosting
Mexican workers’ rights and
wages in talks to overhaul the
North American Free Trade
Agreement.
The intensifying consultations with labor are part of a
gambit to reshape trade politics by winning big Democratic
support for the administration’s approach to the Nafta
talks, which resumed this
week in Mexico City. The Democrats’ votes would be needed
to win approval for any new
deal, given the criticism the
administration’s blueprint for
remaking Nafta has drawn
from big business.
Big labor hasn’t been happy
either with every aspect of the
Trump approach. But while
U.S. negotiators have largely
ignored complaints from the
Chamber of Commerce and its
allies, they are actively working with the AFL-CIO and its
backers to try to satisfy their
demands.
“I have trust and confidence in Bob Lighthizer,” says
New Jersey Democratic Rep.
Bill Pascrell, a longtime advo-
HOANG DINH NAM/PRESS POOL
BY JACOB M. SCHLESINGER
U.S. Trade Representative Robert Lighthizer
cate for stronger labor protections in trade pacts. “He
knows I wasn’t satisfied with
what they’ve proposed and I
feel our position has been appreciated by him. I’m giving
him the benefit of the doubt.”
Mr. Pascrell and other Democratic congressmen say low
Mexican wages and weak labor
protections give the country
an unfair competitive production cost advantage in drawing
manufacturers from the U.S.
The Trump administration’s
renewed focus on beefing up
labor rights points to an
evolving strategy in the negotiations.
President Donald Trump
and aides have in recent weeks
softened threats to blow up
the agreement, following
fierce lobbying from agriculture, business, and congressional free-traders warning of
economic calamity if the pact
collapses.
Mexican officials say they
are addressing labor issues on
their own through constitutional reforms.
Many union officials say
they have gotten a more sympathetic hearing from Trump
trade officials over Nafta than
they got from Democratic
President Barack Obama’s
aides negotiating the TransPacific Partnership, which
most unions and Democratic
lawmakers
opposed—and
which Mr. Trump terminated
shortly after taking office.
Until now, there had been
no known examples of a successful attack on the heavily
guarded network of the German federal government,
known as IVBB, which is used
by ministries and federal security agencies. The interior
ministry didn’t specify which
of the government’s several
highly protected networks was
affected.
Federal government workers are only allowed to use
dedicated and highly secured
mobile devices to access the
network. They are limited in
the number of websites they
can access from work and generally barred from using USB
devices that can carry computer viruses.
Hackers could easily have
penetrated low-security networks at government departments that have connections
to the wider internet, said
Sandro Gaycken, a German cyberwarfare expert and director
of a North Atlantic Treaty Organization cyberdefense program, adding that those networks were unlikely to hold
sensitive information.
“They would have needed
extra magic or help from an
insider to gain access to topsecret information,” Mr. Gaycken said.
Rate Falls
BY PAUL HANNON
The annual rate of inflation
in the eurozone fell for a third
straight month in February,
likely reinforcing the European
Central Bank’s sense of caution as it considers a further
withdrawal of stimulus.
According to the European
Union’s statistics agency, consumer prices were 1.2% higher
in February than a year earlier, the lowest annual rate of
inflation since December 2016
and well below the ECB’s target of just under 2%.
The decline is largely the
result of a sharp rise in energy
prices in 2017 that hasn’t been
repeated this year, and underlines an apparent weakening
of the relationship between
economic growth and prices.
.
THE WALL STREET JOURNAL.
A10 | Thursday, March 1, 2018
WORLD NEWS
Beijing
China Stifles Criticism of Xi Move Top
Official
BY EVA DOU
AND TE-PING CHEN
Meets U.S.
Executives
BY JACOB M. SCHLESINGER
AND SARAH KROUSE
GREG BAKER/AGENCE FRANCE-PRESSE/GETTY IMAGES
BEIJING—China
has
launched a broad effort to silence critics of a proposal that
would allow President Xi Jinping to extend his rule indefinitely, as Beijing seeks to
break decades of political
precedent with minimal domestic uproar.
Beijing has mobilized multiple arms of the government to
suppress criticism of the Communist Party proposal to remove presidential term limits—expected to be approved
at an annual parliamentary
session that begins Monday—
with lawyers threatened with
disbarment, police visits to
critics and online censorship.
While state media lauded
the proposal, saying it would
help maintain consistent leadership, questions and critical
comments exploded online on
Sunday after the announcement from the official Xinhua
News Agency, which unusually
was made first in English.
Some dissidents said state
security officers have shown up
to question them on the issue
on camera, without saying what
the footage would be used for.
Guangzhou-based activist
Wang Aizhong said officers
filmed him on Saturday, a day
before the announcement. “All
they asked me that day was
what I thought about changing
the constitution,” he said. An
activist in a different province
said he received a similar visit
on Sunday, after the announcement.
A Chinese scholar said he
received warnings from police
and academic administrators
after he commented online
about the news.
China’s Ministry of Public
Security didn’t respond to a
request to comment.
Human-rights activists and
lawyers in China often receive
warning visits from police
around sensitive events such
China has steadily moved closer to a return to one-man rule under President Xi Jinping, seen in a Henan province village billboard.
as the legislative session.
It is rare, however, for so
many people to receive warnings against speaking on one
specific issue, said Amnesty
International researcher William Nee. “It shows that this is
seen as a controversial move
within the system,” he said.
One particularly stern
warning to lawyers in Hunan
province was made locally, but
spread through social media
and resonated in part because
it threatened disbarment.
The notice told law firms in
the city of Lengshuijiang that
they could have their licenses
suspended for two years and
that lawyers could be prohibited from practice for five
years if they comment negatively online on the proposed
change to China’s constitution.
A local lawyer said the notice on city Justice Bureau letterhead was circulated by office superiors.
A publicity official for the
Hunan Justice Department
didn’t confirm or deny the gist
of the document, but called it
a mistake by a local worker.
He said that it wasn’t in the
correct format for an official
document from the Lengshuijiang Justice Bureau.
In Sichuan province, one
lawyer said a firm supervisor
warned staff against commenting about the news online.
Lawyers in several provinces said they had also been
warned by authorities against
commenting on the issue.
Because the state-con-
trolled news agency announced the news in English
first—Xinhua’s Chinese-language report came more than
an hour later—media organizations around the world reported the change before it
was announced to the wider
domestic audience in Chinese.
Xinhua didn’t respond to a
request to comment why the
English version came first.
Before critical comments
were removed online, some
criticism focused on risks
China was returning to the
kind of instability and chaotic
policy shifts that marked the
Mao Zedong era.
One of the few people to
post a lengthy criticism of the
move was Wang Ying, a Beijing-based entrepreneur.
Removing term limits
would be “trying to turn the
clock back,” Ms. Wang wrote,
in an open letter on WeChat
Monday, screenshots of which
circulated widely online.
Ms. Wang’s comments were
censored, though some WeChat
users found ways to share
them, including via screenshots flipped on their side.
In an interview with The
Wall Street Journal, Ms. Wang
said, “What happens here, this
kind of perverse subverting of
history, won’t just harm Chinese people,” she said.
“If America sneezes, China
gets sick,” she said, citing a
U.S. stock-market tumble this
year that affected Chinese
markets. “And if we sneeze,
you also get sick.”
WASHINGTON—Chinese
President Xi Jinping’s top economic adviser met with executives from Wall Street and big
U.S. manufacturers at the start
of his visit to Washington, according to people familiar with
the matter.
The meeting between Liu He
and business luminaries, including JPMorgan Chase & Co. CEO
James Dimon, BlackRock Inc.
Chief Laurence Fink and Goldman Sachs Group Inc. co-chief
operating officer David Solomon, came a day before Mr. Liu
is slated to see top Trump administration officials amid rising economic tensions between
the two countries.
Mr. Liu is scheduled to meet
Thursday jointly with three core
members of President Donald
Trump’s economic team: U.S.
Trade Representative Robert
Lighthizer, Treasury Secretary
Steven Mnuchin, and Gary
Cohn, the director of the White
House National Economic Council, according to a White House
spokeswoman. Before joining
the Trump administration, Mr.
Cohn was Mr. Solomon’s predecessor at Goldman Sachs.
Asked if Mr. Liu would also
meet with President Trump, the
spokeswoman said “there is no
presidential meeting to confirm
at this time.”
A spokesman for the Chinese
Embassy couldn’t be reached
for comment.
The administration is weighing wide-ranging trade penalties against China, as part of its
attempt to curb a $375 billion
trade imbalance.
—Emily Glazer and Liz
Hoffman in Washington
contributed to this article
India’s Growth Zooms to Global Lead Indonesian Christians
NEW DELHI—India’s economy grew at its fastest pace in
more than a year last quarter,
regaining the top spot from
China of the world’s fastestgrowing major economies.
Asia’s third-largest economy
grew 7.2% in the three months
through December compared
with a year earlier, government
data show. The figure raised
hope that the disruptions from
the dramatic policy moves by
Prime Minister Narendra Modi
may have faded.
India’s growth beat economists’ prediction of 6.9% and
was significantly stronger than
the 6.5% and 5.7% expansion in
the preceding quarters. China’s
economic growth, which had
overtaken India’s about a year
ago, grew 6.8% last quarter.
The data showed strength
across most sectors, except for
mining. Manufacturing output
grew 8.1%, farm output 4.1%,
and construction output 6.8%,
all strengthening from the
previous quarter. Services continued to do well, with trade,
hotels and transport clocking
a 9% expansion. Mining was
the lone weak link, with output declining 0.1% following a
7.1% expansion.
GDP growth had dipped below 6% in the first half of last
year as demand was hit by Mr.
Whipped for Gambling
Edging Ahead
BY BEN OTTO
AND ANITA RACHMAN
India moves past China among
the world's fastest-growing
major economies.
GDP, change from a year earlier
10%
India
China
8
6
4
2
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2016
’17
Sources: Ministry of Statistics and Program
Implementation (India); National Bureau of
Statistics of China
SANJEEV GUPTA/EPA/SHUTTERSTOCK
BY ANANT VIJAY KALA
THE WALL STREET JOURNAL.
Vendors in Bhopal on Tuesday sold colored powders before a festival.
Modi’s decision to void most
of the currency in circulation—a move aimed at stemming corruption and bolstering cashless transactions. The
government also implemented
a new nationwide goods and
services tax, confusing some
businesses with new rules.
While India’s economy is
growing at an impressive pace
by global standards, it needs
even-faster expansion to provide jobs to the more than 10
million Indians entering the
workforce each year.
Pressure is growing on Mr.
Modi, who promised his policies would help create millions
of new jobs. His biggest moves
to modernize an economy in
which many businesses operate outside the formal system
were initially widely lauded,
but doubts have grown about
whether they were worth the
pain.
Mr. Modi argues that these
policies will lead to longerterm gains.
In October, the government
unveiled economy-boosting
measures, including a $32 billion capital infusion for staterun banks that are finding it
hard to increase lending burdened by bad loans.
But a scandal at the country’s
second-largest state-run bank
has jolted investor confidence.
Despite rebounding growth,
many businesses, particularly
exporters, are still struggling.
Still, pockets of the economy are growing smartly.
JAKARTA—Two Indonesian
Christians were publicly
whipped for gambling, a rare
case of non-Muslims being
punished here under Islamic
law, as the country shifts toward a more politicized brand
of the religion associated with
the Middle East.
The man and woman are
residents of Aceh province on
the northern tip of Sumatra island, a province that has imposed strict Shariah law. They
were whipped at least six
times each on Tuesday by a
robed man wearing a mask
and wielding a rattan cane.
Hundreds of onlookers jeered
them as the punishment was
carried out on a stage next to
a mosque in the provincial
capital, Banda Aceh.
Indonesia, the world’s mostpopulous
Muslim-majority
country, has long been known
for its more moderate form of
the religion. It has laws protecting the rights of Christians
and other groups, a robust democracy and an open economy
attracting investors including
Toyota Motor Co. to Samsung
Electronics Co.
But
hard-line
Islamic
groups have been using the
country’s democratic system
to promote an Islamic agenda,
building support among citizens with charity work and
public preaching.
Last year, hard-liners succeeded in a campaign to imprison the Christian governor
of Jakarta for blasphemy. Lawmakers are now negotiating a
revision of the criminal code,
including provisions pushed by
Islamic parties that would imprison gay people or unmarried cohabiting heterosexuals.
Aceh is the only province in
Indonesia governed by Shariah
law, under a measure of autonomy allowed to settle a
separatist conflict in the country of 250 million people.
Some 98% of Aceh’s five million people are Muslims. They
can face flogging for offenses
including drinking alcohol,
adultery, gay sex, gambling or
having romantic relationships
before marriage.
The two Christians flogged
on Tuesday were punished for
playing a game at a children’s
entertainment complex in a way
authorities say amounted to
gambling, said Yusnardi, head
of Banda Aceh’s Shariah police
force, which enforces laws
rooted in Islamic faith. A Muslim man also involved in the
case received at least 19 strokes.
hurt his investment and others
who joined him in betting
against Herbalife. He tried to
take the fight to Washington,
urging regulators and Congress
to act.
In the end, investors sided
with Herbalife and the company—and Mr. Icahn—won. Mr.
Icahn now owns 26% of Herbalife and has made over $1 billion, according to filings.
“Bill Ackman put up a great
fight and while I really enjoy a
great fight, especially when I
believe I’m 100% in the right,
and I’m certainly happy we
won, much more importantly
the company is much better off
without this distraction,” Mr.
Icahn said in an interview on
Wednesday. “I wish Bill well.”
Pershing
Square
first
shorted Herbalife at around
$47; factoring in the cost of the
bet and lobbying expenses, he
originally needed it to fall
closer to the $30 range to
make a profit. His ultimate
losses depend on how much he
paid for securities and borrowing costs, which funds don’t
have to disclose, and the bet
was restructured several times.
The Herbalife loss exacerbated a dramatic turn at Pershing Square, which peaked
above $20 billion in assets in
2015 only to plunge to $8.9 billion now, partly on a $4 billion
loss on Valeant Pharmaceuticals International Inc.
Over the past 12 months,
Herbalife stock rose 65%,
surging Wednesday after the
company announced a new
share-repurchase plan and renamed itself Herbalife Nutrition Ltd.
“For those who aren’t familiar with us, or may misunderstand us, don’t be afraid to get
to know us,” Chief Executive
Rich Goudis said.
BET
Continued from Page One
news, earlier reported by
CNBC. The shares closed up
6.3% at $92.10.
Mr. Ackman first alleged in
December 2012 that Herbalife,
which sells through a network
of distributors, was an illegal
pyramid scheme and would be
shut down by the government.
He had personally pledged to
take his campaign “to the end
of the earth,” though he added
that Pershing Square would
abandon the bet if it got too
risky. The company says it is a
legal multi-level-marketing organization and fought him at
every turn, accusing the investor of market manipulation,
which Mr. Ackman denied.
Mr. Ackman’s campaign did
lead to some major changes
and spurred the Federal Trade
Commission to investigate
Herbalife. The climax of the
drama came when Herbalife
settled the probe in July 2016,
agreeing to a $200 million penalty over claims it misrepresented earnings prospects for
distributors. While the government was critical, it didn’t declare the company a pyramid
scheme. The government
forced changes in how the
company operates to prove
customers actually buy its
products, but allowed Herbalife
to continue operating.
Mr. Ackman contended that
the government validated many
of his claims and that Herbalife
would collapse under the
weight of new sales rules. He
has pointed to changes the
company has made and a drop
in earnings as further evidence
his campaign was on target.
The stock, however, contin-
NIKKI RITCHER FOR THE WALL STREET JOURNAL
FROM PAGE ONE
William Ackman is ending his
crusade against Herbalife.
ued to march higher and Herbalife said its problems were in
the past and began buying back
shares heavily. The buybacks
led Mr. Ackman to restructure
his bet last year.
Herbalife, from a relatively
obscure company, rose to be-
come Wall Street’s favorite
soap opera.
There was a live television
shouting match between Mr.
Ackman and Carl Icahn, the activist who became Herbalife’s
biggest investor in 2013; Netflix aired full-length documentary that supported Mr. Ackman; and star turns by soccer
star Cristiano Ronaldo and former Secretary of State Madeleine Albright in support of
Herbalife.
Mr. Ackman gave hours of
presentations to investors on
minutia of Herbalife’s operations, speaking so long he had
to pause for bathroom breaks.
Herbalife built its own website
to lambaste Mr. Ackman and
showcase negative stories
about him.
Mr. Ackman drew both
praise and ire from fellow investors, some of whom deliberately piled into the stock to
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A11
* *
WORLD NEWS
50 miles
TURKEY
50 km
Afrin
Hasakah
Aleppo
Raqqa
Idlib
IRAQ
HAMZA AL-AJWEH/AGENCE FRANCE-PRESSE/GETTY IMAGES
Deir Ezzour
SYRIA
Homs
Palmyra
LEBANON
Areas of control
Russia/Iran/Syrian regime
Syrian Kurds
Opposition
Opposition/Turkey
Islamic State
Damascus
JORDAN
The Assad regime has cornered the opposition in pockets like Eastern Ghouta, where the town of Douma, above, has been hit heavily.
Note: Areas of control as of Feb. 27
Source: Institite for the Study of War
THE WALL STREET JOURNAL.
Foreign Powers in Syria Jockey for Clout
Diverging interests
among countries and
their proxies could
spark a wider conflict
BY SUNE ENGEL RASMUSSEN
BEIRUT—The demise of Islamic State is intensifying a
scramble among foreign powers in Syria, raising the risk
that diverging strategic and
commercial interests could
lead to a wider regional war.
In the past month, a U.S.
airstrike in the eastern part of
the country killed an unknown
number of Russian military
contractors; Israel hit Iranian
military installations deep inside Syria; while Turkey
waged a campaign against
Kurdish militias in the north.
The volatile situation is a
result of how the fight against
Islamic State was conducted,
with players seizing territory,
arming proxies and aggravat-
ing long-existing ethnic and
political divisions. The result:
a series of flashpoints where
clashes could erupt among
major powers and spill over
Syria’s borders.
“No one wants that war, but
everyone is ready for it and
expects it,” said Emile Hokayem, a Syria expert at the
International Institute for
Strategic Studies in London.
Russia has emerged as a
dominant force, after intervening to turn the tide in the multisided conflict in favor of the
government of Syrian President Bashar al-Assad. Yet even
Russian President Vladimir
Putin, who in December declared victory in Syria but has
kept his country deeply involved, has limited control.
With the backing of Russia
and Iran, Mr. Assad has largely
prevailed against rebels trying
to oust him, relying on ferocious violence to recapture
territory and cornering his remaining opponents in pockets
like Eastern Ghouta on the
outskirts of Damascus and in
the northwestern province of
Idlib.
Other hot spots are in the
north, where Turkey is trying
to drive back Syrian Kurdish
militants, and the east, where
the U.S. is fighting the last
significant pocket of Islamic
State fighters. In the south, Israel could be drawn into the
conflict by responding to the
increased presence of forces
loyal to Iran.
Last month, U.S. forces
launched airstrikes and an artillery bombardment when
fighters, including Russian
military contractors, moved to
occupy a gas field near the
eastern town of Deir Ezzour.
U.S. officials said about 100
people were killed.
Moscow played down the
incident, with Russia’s foreign
ministry acknowledging a
handful of deaths. Russia was
likely seeking to avoid escalating tensions, wrote Pavel K.
Baev, a nonresident senior fellow at the Brookings Institution, last week.
Russia and the U.S. have
also come close to clashing in
the air. Since October, Russian
planes have breached the U.S.controlled eastern side of the
Euphrates River half a dozen
The volatile situation
is a result of how the
fight against Islamic
State was conducted.
times a day, said Lt. Col. Earl
Brown, Central Command
spokesman.
On Dec. 13, U.S. F-22 Raptors intercepted two Russian
Sukhoi SU-25s and for 40 minutes fired flares and used an
emergency channel to get the
Russians to depart the U.S.controlled airspace. At one
point, American and Russian
planes nearly collided.
“It’s become increasingly
tough for our pilots to discern
whether Russian pilots’ actions are deliberate or if these
are just honest mistakes,” Col.
Brown said.
“The coalition’s greatest
concern is that we could shoot
down a Russian aircraft because its actions are seen as a
threat to our air or ground
forces,” he said.
The U.S. hasn’t downed a
Russian aircraft in more than
60 years and doing so now
would greatly risk retaliation.
Iran, the other staunch ally
of the Assad regime, has consolidated what it calls a “front
of resistance” against Israel
and the U.S. Last month, Israel
made its deepest foray into
the war when it shot down an
Iranian drone over the Golan
Heights and went on to bomb
a series of Iranian and Syrian
installations deep into Syria.
An Israeli jet was shot down
by antiaircraft missiles during
one of the raids.
Israel’s
bombardments
likely required consent from
Russia, which controls the airspace and sat back as the Israeli jets took off and hit their
targets.
The Trump administration
has signaled an open-ended
U.S. presence in Syria, but it is
reluctant to get deeper into direct fighting or mediating the
conflict. That disengagement
in Syria heightens the risk of a
regional war, said Mr. Hokayem, the IISS Syria expert.
Rival powers need to communicate to diffuse potential
clashes but don’t have an obvious channel in the absence
of U.S. mediation.
“Everyone is hoping that
the Russians will pick up this
role, but we don’t know if they
are able or willing to do so,”
Mr. Hokayem said.
—Benoit Faucon
and Dov Lieber
contributed to this article.
KABUL—Afghan President
Ashraf Ghani offered to recognize the Taliban as a legitimate political party if they
agree to a cease-fire and enter
negotiations to end more than
16 years of war.
As part of that proposed
peace process, Mr. Ghani said
Wednesday that Afghanistan’s
largest insurgent group should
acknowledge the legitimacy of
the central government in Kabul and the country’s constitution, particularly the rights it
enshrines for women.
“Now the decision is in
your hands—accept peace...
and let’s bring stability to this
country,” the Afghan president
said at a meeting of regional
officials and representatives of
nongovernmental organizations.
The Taliban had no immediate response to the Mr. Ghani’s
proposal, which omitted any
mention of American and other
foreign forces in Afghanistan or
when they might withdraw—a
principal Taliban demand.
On Monday, however, the
group said it was willing to
enter talks to find a “peaceful
solution” to the war, in response to comments by a senior State Department official
that the U.S. supported dialogue with the Taliban.
“It would help in finding a
solution if America accepts the
legitimate demands of the Afghan people and forwards its
own concerns and requests for
discussion to the Islamic Emirate through a peaceful channel,” it said in a statement.
The Taliban have repeatedly said they would talk only
with the U.S., which it regards as its principal adversary and main prosecutor of
the war.
Since President Donald
Trump announced a rejuvenated U.S. policy in Afghanistan in August, the U.S. has
dramatically increased military pressure on the Taliban,
especially through airstrikes.
What U.S. military officials described earlier last year as a
stalemate has turned in the
government’s favor, they say.
The aim of the increased pressure, U.S. and Afghan officials
say, is to force the insurgent
group into negotiations.
Yet the Taliban have more
funds and sophisticated weapons that at any time since the
Saudis Mend Ties
With Lebanon Leader
MARGHERITA STANCATI
AND NAZIH OSSEIRAN
BY
BEIRUT—Lebanese Prime
Minister Saad Hariri traveled
Wednesday to Saudi Arabia,
his first trip there since he
briefly resigned in a surreal
episode that exposed the limits of Riyadh’s efforts to check
Iran’s influence in the region.
Mr. Hariri, the leader of Lebanon’s main Sunni Muslim political bloc, held a meeting with
King Salman and other Saudi
officials—a show of support
from the Sunni monarchy ahead
of Lebanese parliamentary elections scheduled for May 6.
“They are signaling that
Lebanon matters,” says Maya
Yahya, director of the Carnegie Middle East Center in Beirut. “They are still concerned
about it being in their sphere
of influence, and that Hariri is
important to them.”
Saudi officials in November
summoned Mr. Hariri to Riyadh,
where he announced his resignation in televised remarks in
which he cited the destabilizing
role of Iran and its Lebanese
proxy, the Shiite militant and
political group Hezbollah. The
remarks echoed Saudi positions.
Yet the surprise announcement exposed Saudi Arabia to
criticism that it had forced Mr.
Hariri to quit—which it denied—and threatened to upend
a delicate sectarian balance of
power in Lebanon. Upon returning to Lebanon weeks
later, Mr. Hariri rescinded his
resignation amid an anti-Saudi
backlash among Lebanese.
The episode damaged Mr.
Hariri’s relationship with Saudi
Arabia, and pushed him to take
a more conciliatory stance toward Hezbollah. Saudi Arabia
and the U.S. consider Hezbollah, which is the dominant political force in Lebanon and a
member of the governing coalition, a terrorist organization.
This week’s trip to Riyadh
signals a desire from Mr. Hariri
and his Saudi allies to close that
chapter, particularly ahead of
elections, in which Mr. Hariri’s
bloc—the Future Movement—is
expected to face losses.
President Ashraf Ghani on Wednesday at a Kabul conference, where he proposed conditional talks.
U.S.-led invasion of Afghanistan
in 2001. According to the Long
War Journal, a reporting and
analysis outlet run by the Foundation for Defense of Democracy, a Washington-based think
tank, 162 of the country’s 398
districts are either contested or
controlled by the group.
At the same time, the Taliban face internal divisions over
strategy and an external rival
for pre-eminence among radical Islamists in the form of the
local affiliate of Islamic State.
Little of what Mr. Ghani
said on Wednesday was new.
But in raising the prospect of
peace talks with the Taliban, a
group he vilified as terrorists
after a spate of ferocious at-
tacks in Kabul this year, his invitation represented a shift in
tone as he considers running
for another five-year term in
presidential elections scheduled for next year.
In his speech, Mr. Ghani
posed the possibility that if
the Taliban agreed to a ceasefire and engaged in efforts to
reach a negotiated solution of
the war, the group could be removed from international
blacklists and have its own office in Kabul. The government
would also consider issuing
passports to members of the
Taliban and undertaking a
prisoner swap, he said.
Some observers said some
elements of Mr. Ghani’s proposal appeared nonsensical.
One Afghan political analyst
noted, for instance, that the
offer of Afghan passports in
exchange for the Taliban’s participation in the peace process
was odd because the group’s
members already have passports. More generally, he said,
political recognition is a moot
point for the group.
“The Taliban see themselves as much more than a
political entity” he said. “They
already have a shadow cabinet
and government.”
WORLD WATCH
VENEZUELA
CANADA
Ostracized, Falcón
Will Oppose Maduro
Firms Are Expected
To Invest Less
A former state governor who
broke ranks with the ruling Socialist Party has emerged as
President Nicolás Maduro’s sole
notable election rival, thwarting
the opposition’s effort to secure
a total boycott of the April 22
vote.
The candidate, Henri Falcón,
was expelled Wednesday from
Venezuela’s opposition alliance
of two dozen parties hours after
he formalized his candidacy and
defied its call for abstention.
Countries across the Americas
have condemned Mr. Maduro’s
plans to hold the vote.
“We repudiate Henri Falcón’s
unilateral inscription” as a candidate, Democratic Unity, the coalition, said in a statement. “We
cannot recognize a fraudulent
electoral process.”
Mr. Falcón, 56 years old,
launched his campaign late on
Tuesday, casting himself as an
outsider seeking to improve the
country after 19 years of Socialist Party mismanagement and
economic ruin.
—Kejal Vyas
Business investment in Canada is expected to cool significantly in 2018, reflecting a deep
pullback in the country’s energy
sector as heavy western Canadian crude fetches prices well
below global benchmarks.
Statistics Canada said
Wednesday its annual survey of
capital-spending plans by private- and public-sector organizations indicates a rise in business
investment of just 0.8%, compared with a 3% increase in
2017.
Investment by companies involved in the extraction of oil
and natural gas is projected to
decline 12% this year, the data
agency said, the fourth straight
annual drop.
The result underscores a
slowdown under way in Canadian economic output following
a strong first half of 2017, and
begins to cast doubt on how aggressive the Bank of Canada
might be this year in raising interest rates.
—Paul Vieira
MULUGETA AYENE/ASSOCIATED PRESS
BY CRAIG NELSON
AND HABIB KHAN TOTAKHIL
SHAH MARAI/AGENCE FRANCE-PRESSE/GETTY IMAGES
Afghan Leader Offers Opening to Talks With Taliban
ABSENT FAMILY: Members of Ethiopia’s Jewish community hold
up mementos of relatives in Israel at an event in Addis Ababa.
JAPAN
Children Settle On
2020 Games Mascot
The 2018 Winter Olympics
are barely over, but the next
Games have their first winner in
the form of a catlike space alien
with the ability to travel anywhere instantaneously.
Elementary-school students
from across Japan chose the
creature as the mascot for the
Summer Olympics in Tokyo in
2020. The winner was announced on Wednesday at a
school in the city.
The mascot, which doesn’t
have a name yet, incorporates
the checkered design of the Tokyo 2020 logo. According to an
official press release, the character has a strong sense of justice
and is up-to-date with the latest
information.
“It’s very cool and futuristic,”
said Miyu Kawa, one of the students who voted for the character.
—Alastair Gale
.
THE WALL STREET JOURNAL.
A12 | Thursday, March 1, 2018
IN DEPTH
In Italy, a New Type of Populism Is Rising
The 5 Star Movement is poised to be the country’s largest party after Sunday’s national elections
BY GIOVANNI LEGORANO
5 Star candidates are projected
to win the most seats in Italy's
parliamentary elections but fall
short of a majority. It is unclear
if they would form an alliance to
govern.
Lower house
5 Star Movement (164)
Forza Italia (147)
Democratic Party (119)
League (96)
Brothers of Italy (39)
Free and Equal (24)
Other center left (22)
Noi con l'Italia - UDC (15)
Others (4)
Comedian Beppe Grillo, above, has led Italy’s 5 Star Movement to the top of the polls ahead of
Sunday’s elections. Luigi Di Maio, below center, is the party’s candidate for prime minister.
FILIPPO PRUCCOLI/EPA/SHUTTERSTOCK (TOP); TONY GENTILE/REUTERS
Democratic Party (54)
League (41)
Brothers of Italy (22)
Other center left (14)
Free and Equal (11)
Noi con l'Italia - UDC (6)
Others (2)
Source: Istituto Ixè S.r.l.
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
mentary majority, Italy’s president could ask parties to
attempt to form a grand,
cross-party coalition that
could have a limited lifespan.
If that fails, he could call fresh
elections. Speculation has
swirled around the possibility
of a grand coalition between
the Democratic Party, the current ruling party, and Silvio
Berlusconi’s Forza Italia, along
with smaller parties.
Mr. Grillo emerged in the
late 1970s as one of Italy’s
most popular comedians,
whose mordant political satire
deftly took down Italy’s corporate and political elite.
In 2005, Mr. Grillo began
writing a blog that exposed
corporate malfeasance and official corruption. It became
one of Italy’s most popular,
with millions of readers.
He became electrified by a
best-selling book by Italian
journalists called “La Casta”
that recounted tales of former
parliamentarians collecting
pensions in their 40s, arranging public-sector jobs for relatives and enjoying cut-rate
lobster meals in their private
restaurant. He launched a
“Clean Parliament” campaign
for a referendum that would
ban from office lawmakers
with criminal convictions.
In September 2007, he organized an event to publicize
the campaign that he dubbed
V-Day, with “V” standing for
vaffanculo, Italian for f— off.
He mobilized activists to collect signatures in more than
is boring.”
The first Academy awards
ceremony took place in 1929 at
the Hollywood Roosevelt Hotel
honoring movies from 1927 and
1928. Phillip Taylor, a 49-yearold speechwriter for an Atlanta
distribution firm, says he has
seen 539 of the 540 best-picture
nominees since then. He plans
to visit an archive in Los Angeles next year to see the last one,
the 1934 drama “The White Parade.”
Mr. Taylor, who lives in Mableton, Ga., has watched 46
films nominated for 2018 Oscars. He is struggling to find titles including the documentary
feature nominee “Faces Places,”
about a French filmmaker and
the photographer-artist JR.
Though he usually watches with
his wife, Mr. Taylor is cramming
in more titles on his own, catching movies on his phone during
work breaks and at home late at
night. A couple of times during
the more than three-hour drive
to visit his parents in Alabama,
he confesses, he has played
movies on his laptop while behind the wheel of his car.
Filmmaker Ru Kuwahata says
she is getting emails from
strangers asking for screening
links to her five-minute movie
“Negative Space,” an Oscarnominated animated short.
“It hasn’t been anything aggressive—it’s more like, ‘Please,
please,’” says the film’s 36-yearold co-director, a first-time Oscar nominee.
Some theaters play the nominated shorts, but finding them
can be tricky. Given privacy concerns and contracts with overseas distributors, Ms. Kuwahata
says she isn’t sharing her
screening password with movie
fans. “It’s hard to trust people
that you’ve never met,” she
says.
Eager to see “Negative
Space,” which uses puppets to
tell the story of a father and son
who bond over the act of packing the perfect suitcase, Mr.
Taylor tracked down the film’s
French production and distribution contacts and requested access. He hasn’t heard back. Mr.
Stoops did one better, paying a
service to make it look like his
computer was located in France
and then viewing the movie on a
site that was streaming it free
for French audiences.
Adam Waldowski recalls
watching the 2007 Bob Dylan
movie “I’m Not There” in Bran-
40%
30
5 Star Movement
20
Democratic Party
Forza Italia
10
League
Brothers of Italy
0
’15
’16
OSCARS
Continued from Page One
in random theaters but now
found with like-minded diehards on social media.
It has never been easier to
join their ranks, with many films
available on digital streaming
platforms and cable. Lots of
high-profile movies were released late last year, including
all but two of the nine up for
best picture, so many were still
in theaters when contenders
were announced on Jan. 23.
This year, Brian Stoops is
making his first stab at Oscar
completion. He has seen 56
films to date.
The 26-year-old San Diego
marketing manager was pleased
when Netflix picked up “The
Breadwinner,” a movie built
around fables from Afghanistan,
after attempting to see the animated-feature nominee a day after it left his local theater. He
drove more than an hour to
catch the Russian divorce drama
“Loveless,” up for best foreign
language film, though at the
time he agreed with a woman
near him who whispered, “This
’17
’18
200 cities in Italy and abroad.
Before a crowd of 100,000
in Bologna, Mr. Grillo read the
names of 24 parliamentarians
and the crimes for which they
had been convicted. Throughout the event, he led the
crowd in a rousing “Vaffanculo!”
“These people don’t represent anybody,” he shouted
from the stage. “We have succeeded in something that will
go down in history. This is the
Woodstock of honest people.”
His supporters collected
It faces a question: Is
5 Star a governing
force or simply a
protest movement?
350,000 signatures, seven
times the number needed to
force parliament to examine
the proposed law. In 2012, a
law banning convicted criminals from serving in parliament was passed.
The event convinced Mr.
Grillo that he and the army of
young people supporting his
campaign had the power to
change Italy. “The V-Day represented a point of no return,”
said Marco Canestrari, a communication consultant working with Mr. Grillo at the
time. Until then, Mr. Grillo
“didn’t know whether [his
blog followers] were willing to
stand up for a cause.”
In 2009, the comedian officially founded the 5 Star
Movement. Three years later,
during regional elections in
Sicily, the party tapped a deep
vein of popular anger that was
sweeping all of Italy, then in
the grips of what would be its
worst economic downturn
since World War II.
At the time, members of
Sicily’s regional assembly were
paid about €15,000 a month
and earned the right to a pension after just 4½ years in office, all while the Sicilian
economy had shrunk 5% between 2008 and 2012, and unemployment had risen to 18%.
Mr. Grillo crisscrossed the
island, speaking from the back
of pickup trucks and balconies
overlooking village squares.
He promised a minimum guaranteed income and a fight
against perks and privileges
enjoyed by local politicians.
“We should be much angrier than the Greeks and the
Spaniards,” he told one rally.
“They don’t have politicians
who steal. We have a political
class who is eating the living
flesh of this country.”
Polls predicted the group
would get 10% of votes. It won
18%.
A year later, in 2013, with a
sovereign debt crisis threatening to drive Italy from the
euro, 5 Star won 26% of votes
cast in parliamentary elections, sending 163 of its members to Italy’s legislature.
Still, Mr. Grillo refused to
HANS VON WALTER
enough to govern alone, but
potentially enough to play a
major part in a coalition government.
Mr. Grillo has roundly rejected that scenario, saying
that unless 5 Star wins an outright majority, it should remain an opposition party.
Joining a coalition government is “like saying that a
panda can eat raw meat,” he
said in January. “We only eat
bamboo.”
If no single party or coalition emerges with a parlia-
Protest Vote
2014
Forza Italia (85)
5 Star Movement (80)
Polls show the 5 Star Movement has gained in popularity ahead of
parliamentary elections in Italy on Sunday.
Source: EMG
Upper house
ADAM WALDOWSKI
ROME—Last October,
Beppe Grillo headlined a protest by the 5 Star Movement,
the populist political party he
founded. Standing outside the
Pantheon he denounced a new
electoral law that will limit direct voting for parliamentary
candidates and help protect
incumbents in national elections on Sunday.
Mr. Grillo, who became famous as a comedian, brandished a white blindfold. “We
are protesting blindfolded because this is how they want
us—unable to see,” the 69year-old told a cheering
crowd. “They only pass rules
that protect themselves.”
The 5 Star Movement exploded after a weak economic
recovery has failed to bring
relief, feeding popular anger
against the corruption and ineffectiveness of Italy’s political
class. Polls show 5 Star could
emerge from Sunday’s vote as
Italy’s single biggest party,
putting it for the first time in
a position to play the senior
partner in a coalition government or form an even more
powerful opposition.
Populist groups in Europe
in recent years have thrived
on rising anger about immigration and the European
Union. 5 Star represents a
uniquely Italian strain, being
overwhelmingly a revolt
against Italy’s entrenched political class. The rest of its
program is eclectic, borrowing
from left, right and technological utopianism. It has centrist
views on immigration, and
while it was once in favor of
Italy’s exit from the eurozone,
its leaders say it is no longer
time to leave the currency.
The election is likely to
prompt a question that could
force 5 Star to define its future—and potentially that of
Italy, too. Is it a governing
force or simply a protest
movement?
On one side are members,
including Luigi Di Maio, the
party’s 31-year-old candidate
for premier, who are pushing
it to join an alliance with
mainstream parties. According
to polls, 5 Star would receive
about 27% of votes—not
form coalitions with other
parties. In early 2014, when
Matteo Renzi, the young new
chief of Italy’s main center-left
Democratic Party, was seeking
political support for his political platform, he asked to meet
with the 5 Star leader.
“I am here to show you our
utter indignation for what you
represent, for the system you
represent,” Mr. Grillo told him
during the meeting, which was
live-streamed. Mr. Renzi cobbled together enough support
from other parties to form a
government and become
prime minister.
Mr. Grillo himself isn’t eligible to run for office, because
he was convicted of manslaughter in the 1980s after a
car he was driving plunged
into a ravine, killing three of
his passengers.
The leader laid out rules for
the party’s newly elected parliamentarians. They weren’t
allowed to participate in TV
talk shows and had to donate
half their salaries to a 5 Star
fund to support small-business
owners. Chauffeured cars were
forbidden.
The rules sparked tensions.
One lawmaker was expelled
from the party after appearing
on two prime-time talk shows.
Four others were kicked out
after criticizing Mr. Grillo’s refusal to countenance an alliance with Mr. Renzi in his new
government. Another was
ejected after donating part of
her pay to charitable groups
rather than the 5 Star fund for
small businesses. In all, 48 of
the parliamentarians moved to
other parties.
5 Star lawmakers have
forced parliament to scrap
sweetheart deals to rent office
space, which according to 5
Star calculations saved taxpayers €32 million a year. They
demanded the end of no-bid
contracts for supplies, halving
the cost of services such as
employee uniforms.
The party hasn’t succeeded
with more-ambitious goals. A
bid to cut parliamentarians’
base pay by half was rejected—members earn about
€10,000 a month, 50% higher
than their British peers. A bill
to force politicians to give up
their seat if they changed parties—common as members
jump on the bandwagon of the
leading party ahead of elections—failed, as did a proposal
to bring parliamentarians’
pensions in line with that of
ordinary Italians.
People familiar with the
matter say that as elections
near, Mr. Grillo has taken a
step back in order to allow Mr.
Di Maio to lead the movement.
The fiery founder has rebranded his blog as his own
thoughts, making it no longer
the party’s house organ. He
has campaigned far less than
in the past, although he will
likely headline the movement’s
final rally on the eve of the
election.
Outsiders can’t picture 5
Star without Mr. Grillo. “I
can’t imagine Grillo distancing
himself from politics,” said
Vittorio Feltri, a newspaper
publisher close to the Berlusconi family. “He will surely
be the pope of the movement.”
Governing Body
Adam Waldowski, at a theater in Hollywood, with a costume
from ‘Phantom Thread.’ Hans von Walter, with his cat, Oscar.
son, Mo., when a fire alarm
went off in the theater. Cate
Blanchett was up for supporting
actress in the film, and he had
driven nearly an hour to get
there from his home in Springfield, Mo., so he kept watching.
“Not my proudest moment,” he
says. The ringing soon stopped,
says Mr. Waldowski, a 30-yearold librarian who now lives in
Los Angeles.
Marty Helle remembers driving 140 miles in a blizzard from
his home in Austin, Minn., to
Ames, Iowa, solely to see “Man-
dela: Long Walk to Freedom.” It
was one of only a few theaters
in the U.S. still playing the film,
he says, and the movie wasn’t
yet available on DVD or cable.
“I was kind of thinking to
myself, ‘This is really dumb,’”
says the 43-year-old lawyer now
in Rochester, Minn. “I’m damn
near dead at the side of the road
and I’m trying to watch a movie
at a theater in a crappy mall in
Ames, Iowa, that I didn’t even
really want to see.” Despite losing time while he waited out the
storm, he made the late show.
The film was up for one Oscar: best original song. It lost to
“Let It Go” from “Frozen.”
After starting his Oscar quest
in 2006, a pursuit he says cost
him at least $1,000 each year—
with an annual $300 on popcorn
alone—the father of three says
he is officially retiring so he can
spend more time with his family. He can’t really stay away:
“I’m probably going to end up
seeing all of them from this year
anyway.”
Last year, Hans von Walter
calculated he still had enough
time to see “Loving” on iTunes
even though the Oscar ceremony was starting in a few
hours. The movie, with a bestactress nod for Ruth Negga, was
the only major award contender
he had left to see. The 28-yearold medical resident in psychiatry from Loma Linda, Calif.,
watched the film on his laptop
and raced out the second it
ended. He got to his Oscar party
just in time.
This year, his approach is a
little less frantic, with some
screenings calmed by his new
pet—a cat he adopted a year
ago. “His name is Oscar,” says
Dr. von Walter. “So now I have
my own at home.”
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A12A
NY
* * * *
GREATER NEW YORK
New York City Mayor Bill de
Blasio named Miami-Dade
County Public Schools Superintendent Alberto Carvalho as
the next head of the country’s
largest school system, going for
a leader with a record of exBy Arian Campo-Flores,
Mara Gay
and Leslie Brody
panding school choices and improving student achievement.
The appointment of Mr.
Carvalho ends a lengthy search
for a schools chancellor by the
de Blasio administration,
which announced in December
that Carmen Fariña would step
down.
Mr. Carvalho has run the
Miami-Dade public schools system, the fourth-largest school
district in the U.S., since 2008.
Like Ms. Fariña, he has spent
his entire career in education.
He will take over a system
that serves 1.1 million children
and has made strides under
Mr. de Blasio and Ms. Fariña,
who came out of retirement to
run it. But the New York City
school system has long struggled with wide achievement
gaps among students of different racial and socioeconomic
backgrounds. About 75% live in
poverty and rising numbers
are English-language learners.
Challenges loom, including
negotiating a new contract with
a strong teachers union. The
contract expires this summer.
“Alberto Carvalho is a
world-class educator with an
unmatched track record of success,” Mr. de Blasio said in a
statement.
As a superintendent in Florida, where a school shooting in
Parkland killed 17 people in
February, Mr. Carvalho was on
the same page as Mr. de Blasio
in disputing President Donald
Trump’s proposal to arm
teachers. Mr. Carvalho instead
sought funding for more
school counselors.
“This is not the wild west,”
his office quoted him as saying
in a tweet. “Teachers should be
armed with money, technology,
inspiration and love, not weapons. How much more will we
ask of our teachers?”
StudentsFirstNY, a pro-charter advocacy group that has often criticized the mayor, said
in a release it hoped Mr. Carvalho would be “the independent leader that public school
children desperately need.”
United Federation of Teachers President Michael Mulgrew
said he looked forward to
working with Mr. Carvalho,
who had a “collaborative relationship” with the Miami district’s teaching staff.
John Schuster, a spokesman
for the Miami-Dade school system, confirmed that Mr. de Blasio had named Mr. Carvalho
WILFREDO LEE/ASSOCIATED PRESS
New Chancellor Appointed
Alberto Carvalho, superintendent of Miami-Dade County Public
Schools, has been appointed chancellor of New York City schools.
chancellor. He added that Mr.
Carvalho “has not yet accepted
and will not be making public
comments on this matter until
he addresses the board he has
worked for for 10 years” on
Thursday.
A spokesman for Mr. Carvalho said he wouldn’t comment until Thursday.
City Weighs Fate
Of 13 Schools
Security deposit insurance is available for apartment rentals in the twin towers at American Copper Buildings on Manhattan’s East Side.
Landlords Ease the Blow of Deposits
BY JOSH BARBANEL
In New York the rent is too
darn high, and so is the security
deposit.
Now some landlords are trying to lighten the burden.
Owners of some of New York
City’s largest apartment buildings are signing
PROPERTY
up for services
that allow tenants to pay
smaller, nonrefundable fees
rather than plunking down hefty
security deposits that will languish in low-interest bank accounts for years.
One startup, Rhino, was set
to launch a service for New York
tenants on Wednesday that will
charge a monthly fee, typically
$10 to $25 a month, and promises to reimburse landlords for
any damages or unpaid rent up
to double the value of the security deposit the landlord otherwise would have charged.
Another service, Jetty,
launched last year and moved
into the New York market in October. Its deposit insurance
product, known as Jetty Passport Deposit, charges 17.5% of
the standard security deposit as
a one-time fee, and insures
landlords up to the full amount
of the deposit. This deposit can
be rolled over to lease renewals
without additional charge. Jetty
said the service has expanded to
44 states and is working with
managers of 250,000 apartment
units across the country.
The service providers, which
are backed by insurance companies, take a risk if tenants bolt
early from their leases or trash
their apartments. But landlords
The Sticker Shock in
Apartment Leasing
The pile of cash needed to
lease an apartment in New
York is daunting.
First there is a month’s
rent. Then a month or more
for a security deposit. In many
cases there is a broker fee on
top of that.
For the typical Manhattan
rent of $3,275, according to
Miller Samuel Inc., the total
cash outlay could approach
$10,000 just to move in.
The resulting sticker shock
is behind the movement for
say most tenants fulfill the
terms of their leases. And the
providers can pursue claims
against tenants for excessive
damage to their apartments or
for unpaid rent.
The idea of security deposit
insurance has been around since
the 2000s, with the advent of
Sure Deposit, which is still offered across the country.
The latest group of startups
has stirred the imagination of
tech-minded building owners,
who see it as a way to ease the
friction in closing a deal on an
apartment.
Rhino is catching on with
luxury-rental developers like
Glenwood Management, where
three-bedroom apartments can
go for $15,000 or more a month,
as well as owners of rent-stabilized buildings. Jetty is now
available at JDS Development
Group’s American Copper Build-
security deposit insurance,
which lowers the initial outlay
for tenants. Instead, they pay
lower nonrefundable fees.
For tenants, such products
can ease a major financial
burden.
These services could make
leasing easier for affluent
renters who don’t want to tie
up cash in a security deposit,
as well as cash-poor recent
college grads and lower-income renters of rent-regulated
apartments.
For landlords, the services
can cut administrative costs in
handling the bookkeeping
complexity of managing bank
accounts for each tenant.
ings—twin towers connected by
a sky bridge with a pool on it on
First Avenue in the Murray Hill
neighborhood on Manhattan’s
East Side. It currently lists a
two-bedroom unit on the 31st
floor for $9,549.
“These security deposits can
get very costly,” said Jodi
Stasse, an executive vice president at Citi Habitats, who is
overseeing rentals at American
Copper. The deposit insurance
“has allowed people to have
other options.”
In Long Island City, Queens,
Tishman Speyer’s Jackson Park,
a rental with three high-rise
towers, is offering Jetty, while
nine blocks away, the Pearson
Court Square, a 15-story rental
by L+M Development Partners,
has signed up with Rhino.
“I think this is going to be
adopted universally, it is a nobrainer,” said Mitch Posilkin,
general counsel for the Rent
Stabilization Association, which
represents 25,000 property
owners and agents with rentregulated housing and is recommending Rhino to its members.
Ofer Yardeni, the chief executive of Stonehenge Partners, a
Manhattan-based real-estate
company, said he is providing
deposit insurance as a service to
tenants rather than as a way to
make money, but it has helped
the company close deals with
new tenants.
So far, 30 renters signed up
for it, about 15% of all new tenants, said Jodi Berman, vice
president for leasing and marketing at the company. Many of
those were students or renters
coming from abroad with little
credit history, who were asked
to provide additional months of
security deposits. Instead they
signed up to pay a larger
monthly fee to Rhino.
Rhino said it is available at
buildings comprising 23,000
New York apartment units. Jetty
said it is working with five of
the 10 largest private landlords
in the city. Jetty, Rhino and Assurant, which operates Sure Deposit, declined to disclose how
many tenants have signed up.
Security deposit insurance is
a multibillion-dollar market, and
the competition will only expand it, said Ankur Jain,
founder of Kairos, a $25 million
fund set up to build and invest
in startups. Kairos is an early investor in Rhino.
“This is a rising tide lifting
all boats,” he said. “The more
people who are in this space
right now, the more tenants can
afford rents.”
Hundreds of upset parents
showed up Wednesday night
at contentious meeting in
Manhattan where a city panel
was going to vote on closing
13 public schools this summer.
About 200 people signed up
to comment, so the meeting
stretched for hours. Many carried colorful signs pleading for
their schools’ survival. At one
point, the crowd chanted,
“Save our schools.”
If the city Department of
Education’s proposals for closures are approved, it would
be the biggest batch of closures under Mayor Bill de Blasio, who has called shutting
schools a last resort.
The Panel for Educational
Policy, a board dominated by
mayoral appointees, was expected to vote late in the
night. Most of the schools are
in the Bronx and Manhattan.
The list includes elementary,
middle and high schools.
Gustavo Angeles, a seventhgrader at Urban Science Academy in the Bronx, worried that
closing the school would rip
him from friends. “For me and
my sister, it feels like a second
home for us,” he said. “Our
teachers always care for us.”
Melinda Vazquez, a mother
at P.S. 92 in the Bronx, said it
was a refuge in a violent area
and should stay open. “At least
I know the school is safe.”
Department of Education officials said the schools couldn’t
be saved due to a mix of problems such as dwindling enrollment, poor achievement, high
absenteeism and weak leadership. Officials said the department would help roughly 2,600
students affected find places in
other schools.
Eight schools expected to be
closed are “Renewal schools,”
which received extra resources,
such as longer hours, teacher
training and social services.
Mr. de Blasio set up the pro-
On the List
In the Bronx: New Explorers
High School, Felisa Rincon de
Gautier Institute for Law and
Public Policy, Urban Science
Academy, Urban Assembly
School for Wildlife Conservation, P.S. 92
In Brooklyn: P.S. 25
In Manhattan: Coalition
School for Social Change, P.S.
50, Kappa IV, Academy for
Social Action, High School for
Health Careers and Sciences
In Queens: M.S. 53, P.S./M.S.
42
gram in an effort to avoid closing struggling schools.
Some charter-school advocates said it would have been
better to replace failing schools
with new ones early on. Some
educators and parents said the
Renewal schools’ progress was
hobbled by red tape, staff turnover, large class sizes and the
stigma of being in the program, among other problems.
‘It feels like a second
home for us,’ a Bronx
seventh-grader said
of his school.
One school slated to be
closed is the site where the
mayor announced the Renewal
plan, Coalition School for Social Change. The high school’s
enrollment dropped to 122
teenagers, and only 7% were
deemed on track for college
readiness, city data showed.
Also up for closure was Urban Assembly School for Wildlife Conservation, where a student was fatally stabbed in
September. A classmate was
indicted on manslaughter
charges and pleaded not guilty.
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
MICHAEL NOBLE JR. FOR THE WALL STREET JOURNAL
BY LESLIE BRODY
Urban Assembly School for Wildlife Conservation is on the list.
OYSTER PERPETUAL
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A12B | Thursday, March 1, 2018
NY
* ***
THE WALL STREET JOURNAL.
GREATER NEW YORK
BY MIKE VILENSKY
Referencing “The Sopranos” is not a crime.
That sentiment regarding
the HBO hit series was part of
the closing argument given
Wednesday by a lawyer for a
former top aide to Gov. Andrew Cuomo, following a sixweek corruption trial that featured the “Sopranos” term ziti
—or cash—prominently.
“Millions of people would
be in jumpsuits for having
watched ‘The Sopranos’ and
picked up on phrases if that
were a crime,” said the lawyer, Barry Bohrer.
Former Cuomo aide Joseph
Percoco is accused of taking
bribes from three New York
business executives. All are on
trial in federal court in Manhattan. Mr. Cuomo hasn’t been
accused of wrongdoing and
has declined to comment on
the trial.
In closing arguments earlier this week, lawyers for the
government highlighted Mr.
Percoco’s use of the term
“ziti” in exchanges related to
the alleged bribes and said
“this is how criminals talk.”
Prosecutor David Zhou told jurors to use their “common
sense” in reviewing the evi-
dence, saying it shows Mr.
Percoco receiving a low-show
job for his wife in exchange
for state decisions beneficial
to the co-conspirators that
Mr. Percoco was able to influence.
But Mr. Bohrer said
Wednesday the government’s
case hinged on testimony
from a “pathological liar,”
Todd Howe, who was arrested
midway through the case after
admitting he lied to his creditcard company in 2016. Prosecutors tried to distract jurors
with the ziti references because their evidence didn’t
meet the burden of proof, he
said.
Mr. Percoco, he said, never
agreed to take official action
in exchange for his wife’s job
or other payments from the
alleged co-conspirators.
“Ziti meant money,” he told
the jury. “There’s no dispute
that Percoco received money,
but you’re here to determine
if he received that money pursuant to a corrupt bargain, or
took official actions on the
back end of the bargain, and
the government’s evidence
falls short.”
Juror deliberations are expected to begin later this
week.
MARK ABRAMSON FOR THE WALL STREET JOURNAL
Ziti? Lawyer Says Jewish Community Celebrates Purim
Fuggedaboudit
SPECIAL DAY: Members of the Chabad-Lubavitch community in Crown Heights, Brooklyn, prepared for the holiday, which began at
sunset Wednesday. Purim, or the Feast of Lots, commemorates the deliverance of the Jews by Esther from a massacre plotted by Haman.
Gun Legislation Hits a Roadblock
MARY ALTAFFER/ASSOCIATED PRESS
BY MIKE VILENSKY
Joseph Percoco is on trial in Manhattan federal court.
New York state lawmakers
hit an impasse over gun laws
Wednesday after the Republican majority blocked a move
by Democratic legislators to
force a vote on new firearms
restrictions.
The Democratic Senate conference used a parliamentary
procedure called a “hostile
amendment” to attach new
gun measures to unrelated
legislation before the chamber,
but failed to meet the 32-vote
threshold for passage.
The Democratic measures
included a bill that would allow judges to order the removal of an individual’s firearms if the person is
considered a threat to himself
or others, and another to ex-
pand background checks.
The push for the new gun
laws comes after the mass
shooting at Marjory Stoneman
Douglas High School in Parkland, Fla., on Feb. 14 that
killed 17 students and adults.
The state needs to keep
“weapons of war off the
streets and out of the
schools,” Democratic Senate
Minority Leader Andrea Stewart-Cousins said during a news
conference at the Capitol in
Albany. “Unfortunately, it
seems my colleagues on the
other side of the aisle have
taken their lead from their extremist Washington allies.”
Democrats have a majority
in the New York Assembly and
control of the governor’s office but Republicans run the
Senate, aided by nine Demo-
crats who have broken off
from the other Democrats and
allied with the Senate Republican conference.
On Wednesday, however,
eight of the nine GOP-allied
Democrats voted with their
mainline Democratic counterparts in a show of unity between the long-warring Democratic factions. The ninth GOPallied Democrat, Sen. Simcha
Felder of Brooklyn, didn’t vote.
New York’s GOP majority in
recent days has expressed
openness to some of the Democratic measures but emphasized its own school security
ideas, including a plan to install police officers or armed
guards at every school.
“Perhaps every parent’s
greatest fear is sending their
child off to school and he or
she not returning safely,” said
Republican Senate Majority
Leader John Flanagan in a
statement Wednesday. “That is
why we must act swiftly and
decisively to implement additional school safety measures
throughout our state.”
After the 2012 Sandy Hook
Elementary School shooting in
Newtown, Conn., New York
Gov. Andrew Cuomo reached a
deal with Republicans to pass
a package of gun restrictions
called the SAFE Act, which included a ban on assault-style
weapons and new background
check requirements. He has
pointed to that law as a model
in recent days.
“I would like to see the national Democrats put a real
gun bill on the table,” he said
Wednesday.
CRIME
Prosecutors say Ms. Nasyrova
visited the Queens home of the
fellow Russian-speaking victim
in 2016 bearing a cheesecake
tainted with a tranquilizer.
They say the 35-year-old victim ate the cheesecake, fell ill
and passed out.
She was found the next day
on her bed unconscious with
pills scattered about as if she
had tried to kill herself.
The victim later realized her
passport, employment card, a
gold ring and cash were missing.
—Associated Press
GREATER NEW YORK WATCH
NEW YORK CITY
Man Is Arrested
In Deadly Bombing
A Brooklyn man was arrested
Wednesday for planting a package bomb intended for a police
officer that instead killed an elderly man, authorities say.
Police say Victor Kingsley, 37
years old, thought he was placing the device at the home of a
New York Police Department officer whose partner had arrested
Mr. Kingsley in 2014.
Instead, the package was left
on the porch of a Queens building owned by 73-year-old
George Wray, police said. The
package exploded when Mr.
Wrap opened it on July 28. He
died four days later.
It wasn’t clear if Mr. Kingsley
had been assigned a lawyer on
Wednesday. He faces charges of
using a weapon of mass destruction and transporting explosive materials.
Mr. Kingsley faces life in
prison if he is convicted.
—Zolan Kanno-Youngs
JAZZ AT LINCOLN CENTER
Lineup Announced
For 2018-19 Season
Concerts that explore the ties
between jazz and other musical
styles will highlight Jazz at Lincoln
Center’s 2018-19 season.
Key among the programs will
be one focused on country music
(April 25-27, 2019). Documentarian Ken Burns will share clips
from his coming “Country Music”
series, while the Jazz at Lincoln
Center Orchestra will perform ar-
rangements of country songs. Violinist Mark O’Connor will appear
in a program (Oct. 5-6, 2018)
that looks at shared connections
among blues, bluegrass, Cajun,
gospel, folk and contemporary
jazz, plus other styles.
Jazz at Lincoln Center will also
honor the 50th anniversary of
“Sesame Street” with a concert
(Feb. 7-9). The season kicks off
Sept. 13-15, with a performance
of “Spaces,” a work by Jazz at
Lincoln Center Managing and Artistic Director Wynton Marsalis.
—Charles Passy
Woman Accused
In Poisoning Plot
A Russian native from Brooklyn has been accused of poisoning her look-alike with a cheesecake and then stealing her
identity and other property.
Viktoria Nasyrova, 42 years
old, was arraigned Tuesday on
attempted murder, burglary, assault and other charges. She
was arrested in March last year.
Her lawyer declined to comment.
THE
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THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A13
LIFE&ARTS
THE MIDDLE SEAT | By Scott McCartney
Airport Security Screening Goes to School
Burlington, Mass.
THE 7-YEAR-OLD GIRL watched a
man lift a pair of shoes that
weren’t his out of a plastic TSA
screening bin and walk away from
the checkpoint. “He’s stealing!”
Elizabeth Gruber squealed. “Look!
Look! Look!”
Ms. Gruber’s keen eye is what researchers at Northeastern University’s homeland security institute
here are trying to automate. The
man, Michael Silevitch, wasn’t
stealing. The professor of electrical
and computer engineering was running a test of computer software
built to analyze video in real-time
and automatically spot malfeasance.
Think of it as automatic sports
replays—but instead of stopping
the game while referees study
video replays, a computer would
catch a blown call as it happens.
“The use of video [at checkpoints] is of great interest,” says
Laura Parker, the Department of
Homeland Security program manager overseeing the research at
Northeastern. “With tightening
budgets, we do have to think of
technology improvements that will
have significant impact.”
Northeastern is one of nine DHS
“Centers of Excellence” awarded
government-funded research contracts to make airports and Transportation Security Administration
checkpoints both more secure and
easier for travelers. The school got
funding for this work about a year
ago, and is one of five universities
focused on video algorithms.
“In effect, we are kind of having
a competition” to come up with the
best software, says John Fortune,
program manager for the DHS Science and Technology Directorate.
TSA has been under fire for repeatedly failing to detect weapons
in undercover tests and hassling
travelers in everyday encounters.
Administrator David Pekoske and
The software being tested
would automatically
track passengers and
their belongings.
his predecessor, Peter Neffenger,
have pushed technology as a key
to improving effectiveness.
Getting technology to work, however, has sometimes been an issue
for the agency. Years of work on a
“shoe scanner” hasn’t produced an
effective machine, and millions of
dollars of new X-ray body-scanning
equipment ended up in warehouses
after complaints. Back in 2008, TSA
exuberantly predicted that new
screening machines would lift limits
on travelers’ liquids.
Mr. Fortune says the video algorithm work is already showing
promise. The software being tested
would automatically track passengers and their belongings through
checkpoints, making screening
faster and more effective.
One big benefit would be catching people stealing items like wallets and computers from passengers going through airport
screening—a consistent problem
that not only infuriates travelers
but can bring flow at checkpoints
to a temporary, screeching halt.
TSA has video surveillance at its
checkpoints, but any real-time
TONY LUONG FOR THE WALL STREET JOURNAL
At Northeastern University, volunteers go through mock airport screening over and over to perfect video-surveillance software
monitoring is done by humans.
Another benefit would be mixing TSA PreCheck and regular
lines at small airports, where
there aren’t enough passengers to
have a dedicated PreCheck line.
Currently, TSA gives PreCheck
passengers at those sites yellow
cards or some other identifier for
“expedited” screening, such as allowing them to leave their shoes
on. A danger of that process at a
large checkpoint is that one bad
guy could hand the card to a different bad guy, allowing him to
pass through the less-invasive
screening.
With an effective video-surveillance system, the X-ray machine
operator would know which passengers are PreCheck and which bags
are allowed to have liquids and laptops inside. The system would also
detect one passenger giving a yellow card to another.
Once a month, Northeastern advertises for volunteers to spend a
morning going through a mock
checkpoint over and over so the
developing software can be tested.
While some might consider that a
special kind of torment, young Ms.
Gruber, whose father works at
Northeastern’s Kostas Research Institute for Homeland Security on a
different project, found it a fun
way to spend one morning of her
school vacation—even though she
and her 5-year-old sister never got
to get on an airplane.
“I was nervous at first, but after
a few times I really enjoyed it,”
Ms. Gruber says. She wants it
known she didn’t steal, but did
“get to do crazy stuff.”
Her mother, Heather Gruber,
says spending the morning taking
her daughters repeatedly through
TSA-type screening was actually
interesting. “I did ask my husband ahead of time if this was
going to scar them for life,” she
says.
A mock TSA checkpoint at Northeastern’s home security institute employs
wood blocks, fake body scanners and video algorithms to help improve security.
Student Max Leonard came for
the $25 Amazon gift card and
promise of free pizza. In two of
the scripted scenarios, he had to
take items from another person.
Once, Mr. Leonard tried to create
chaos by putting his shoes in different bins; another time, he committed the cardinal sin of putting a
computer and a backpack in the
same bin, resulting in a conveyor
belt slowdown. “It was all definitely awkward,” he says.
The mock checkpoint has a podium for an “officer” to check IDs,
a standard working X-ray machine,
a working walk-through metal detector and a mock body-scanner
made of plywood. Above are 19
cameras that record high-definition video.
Plastic bins have bright green or
pink tape on the edges to make it
easier for computer programs to
“see” items moving in and out.
It will be some time before
Northeastern figures out if its computer programs are able to match
FILM
Automated video surveillance
would enable other technology
that could make airport screening
more flexible and opportunistic,
says John Fortune, program manager for the Department of
Homeland Security’s Science and
Technology Directorate.
If explosives detection scanners were deployed in an airport,
for example, and TSA knew a
passenger had already passed
through one, later checkpoint
equipment could be tuned to be
less sensitive for those passengers, potentially reducing false
alarms and speeding up lines.
Equipment could also be tuned to
be more sensitive for high-risk
passengers.
But that only works if TSA
can accurately match bags with
people all through the process.
“The video correlation has a
lot of different applications,” Mr.
Fortune says.
grab,” says Mr. Silevitch, the
Northeastern professor.
Volunteers tested the system in
other ways. Some cut in line at
different points in the process, to
see if the software could match
people with their belongings when
they were out of order. One man
slyly reached into a bin holding
the belongings’ of the person in
front of him and lifted a block of
wood—a symbolic wallet or
phone—and walked away.
Mr. Silevitch, who uses a cane,
lingered at the rollers where bins
come out of the X-ray machine, innocently looking rather old and
slow. In reality, he was filling his
pockets; he swiped two wood blocks.
“It’s amazingly easy to slip
something out of a bin,” he says.
Streep's Streak
THE OSCARS’
BABE RUTH
Meryl Streep is up for an Academy Award for 'The Post,' her 17th time at bat for a best actress
Oscar. Here's a look at how she measures up against Hollywood's other heavy-hitters.
Qualifying performances vs. Oscar nominations and wins for lead performance
Oscars won
Performances (% Nominated)
Nominations
28 (60.7%)
Meryl Streep
Daniel Day-Lewis
20TH CENTURY FOX
BY MICHAEL SALFINO
MOST ACTORS DREAM of landing that one
role that earns them an Oscar nomination.
And then there’s Meryl Streep, who is so revered by her peers that merely starring in a
movie makes her more likely than not to
earn a best actress nod.
This year’s Academy Award nomination
for her role as newspaper publisher Kay Graham in “The Post” raises Ms. Streep’s Oscar
batting average to .607. With 17 best actress
nominations in 28 qualifying years, she is
quantifiably the most decorated actor in the
history of the Oscars, now in its 90th year.
Up for the top acting award on the men’s
side is Daniel Day-Lewis, who received his
sixth nomination in 12 qualifying years for
“Phantom Thread.” He raised his best-actor
items to owners and track what
happened to them. The research
last Friday was designed to test algorithms to see how accurate they
are at distinguishing objects and
picking up nonstandard patterns.
“We look at a human and see a
person. Analytics sees it as a blob,
and one blob might be two people,” says Northeastern researcher
John Beaty.
Graduate students take the
video and manually tag each element—every person, bag, phone
and book. Then they inventory everything that happened. Computer
programs under development run
on the same video and are scored
by how many interactions they can
identify and whether they can pick
out the anomalies.
TSA didn’t specifically request
children be part of the video analytics tests, but the researchers
say children at airports pose a
challenge to the surveillance algorithms. “They are small, they are
fast, they get carried, and they
The Domino Effect of
Better Screening
Meryl Streep as Kay Graham in ‘The Post.’
average to .500 with this performance,
which he has said will be his final one.
Only Greer Garson—nominated seven
times over 14 qualifying years—matches Mr.
Day-Lewis’s rate.
There isn’t a direct correlation between
nominations and wins. While Ms. Streep has
the highest batting average, she has won
only two best actress Oscars (plus one for
best supporting actress), while Katharine
Please see STREEP page A14
12 (50.0%)
Greer Garson
14 (50.0%)
30 (40.0%)
Katharine Hepburn
23 (39.1%)
Laurence Olivier
19 (36.8%)
Dustin Hoffman
17 (35.3%)
Sissy Spacek
27 (29.6%)
Jack Nicholson
31 (29.0%)
Spencer Tracy
35 (28.6%)
Bette Davis
0
10
20
30
Note: Qualifying performances are the number of Oscar-eligible years in which the actor or actress played a lead role,
as determined by IMDB billing, the film's poster or both
Source: IMDB
THE WALL STREET JOURNAL.
.
THE WALL STREET JOURNAL.
A14 | Thursday, March 1, 2018
LIFE & ARTS
20TH CENTURY FOX (2)
Jennifer Lawrence, left, and below
with Joel Edgerton
FILM REVIEW | By Joe Morgenstern
The Fall of a ‘Sparrow’
Jennifer Lawrence stars as a Russian spy trained to use her body to help the motherland
AFTER LESS than eight
years of stardom, Jennifer
Lawrence’s career is studded with comic triumphs
and depictions of epic suffering. (Her suffering in
“Winter’s Bone,” her first
starring role, was stirring
for being understated, unlike the spectacular trials
she endured as Katniss
Everdeen in “The Hunger
Games” series.) No one can
touch her when her gift for
sparkling comedy intersects
with great material, as in
two of the three films she
made with David O. Russell,
“Silver Linings Playbook”
and “American Hustle.”
Still, she’s taking—and giving—punishment again in
“Red Sparrow.” She plays a
Russian ballerina, Dominika Egorova, who learns to use her body,
along with her mind, as a Putinera spy. Ms. Lawrence is impressive, as always, and Dominika does
some intriguing double- or triple-
dealing when her loyalties are
tested by Nate Nash, a good-guy
American spy played by Joel Edgerton. But the film suffers, terminally, from joyless direction by
Francis Lawrence—no relation—
and a monotonous script by Justin
Haythe.
The title refers to “sparrow
school,” a secret Russian program
of instruction and indoctrination
in the strategic/sexual arts; the
school was supposedly set up
by Soviet Premier Nikita
Khrushchev, and who’s to say
it wasn’t? (The screenplay
was adapted from the “Red
Sparrow” books by Jason
Matthews.) Dominika is far
from a flap-happy fledgling.
She doesn’t want to be in
sparrow school, which she
calls whore school. But she’s
been forced to serve her
country as a new version of a
sleeper agent by her vile uncle Vanya (Matthias Schoenaerts), a heavy hitter in the
SVR, a successor to the KGB.
Vanya has the power to extend, or withdraw, medical
and financial support that’s
desperately needed by Dominika’s ailing mother. (Like
James Cagney’s Cody Jarrett
in “White Heat,” Dominika will do
just about anything for her mom.)
A long section of this needlessly
long film is devoted to sparrow
training. The passage, a possibly
intentional parody of every basic-
training sequence you’ve ever
seen, is deadly serious, extremely
silly and the best part by far.
“From this day forward you’ll become sparrows, weapons in a
global struggle for power,” the recruits are told by Charlotte Rampling’s unnamed and unsmiling instructor, a sort of Ninotchka minus
verve and wit. “Your body,” she
announces later, “belongs to the
state.” And later still: “You must
learn to love on command.” The
instructor’s lectures are followed
by seduction workshops and sexual tests that go beyond silly into
shameless and smarmy. But they
do set up a feminist theme: the
heroine’s struggle to free herself
from the bondage of her wretched
uncle and the male-dominated
state. “In my country,” Dominika
says, “if you don’t matter to the
men in power you don’t matter.”
She says that to Nate, the CIA
operative played by Mr. Edgerton
and the object of her first assignment, in Hungary. He has information that her uncle and the SVR
want at all costs; she’s been ordered to extract it by whatever
means.
This also sets up the potential—
maybe even Dominika’s need—for
her falling in love on command
from her heart. Instead of cat and
mouse, the two spies play sullied
cynics coming clean, or seeming
to, while we try to divine their
true loyalties. Why is she telling
him so much about herself? Is she
falling for him, or wrapping him
around her trigger finger? He’s
certainly appealing, in his roughhewn way—Mr. Edgerton gives a
solid, unmannered performance.
Nate could be the first man worthy
of her trust, unless he’s working
her with devious tradecraft. Or is
he falling for her? If so, how could
he not? She’s gorgeous, she’s vulnerable, she’s Jennifer Lawrence
and it’s Budapest, photographed in
golden hues by Jo Willems.
Many of the images are romantic, but the movie isn’t. Its cool
heart lies with rough sex, spasms
of ugly violence, and the grim
though interesting ironies of Dominika’s existential dilemma and
how she resolves it. Ms. Lawrence
had the same director in three of
her four “Hunger Games” features,
which weren’t grim at all. They
were enlivened by pulp energy and
extravagant style, while everything that happens here is carefully calibrated. Events make
sense, though parts of the plot are
hard to follow, but they don’t
make you grin with anticipation or
gasp with excitement. The one exception to the calculation is a
brief appearance by Mary-Louise
Parker as a U.S. Senate aide
named Stephanie Boucher. Stephanie is a very small cog in a complex screenplay, but Ms. Parker
lifts her from the page and brings
her to screwy, tipsy and delightful
life. It’s the sort of tossed-off
magic that Jennifer Lawrence has
worked so often in the past, and
will work again.
STREEP
strongest decade was the
1980s, when she was nominated six times and took
home the statuette in 1982
for “Sophie’s Choice.”
While it is surprising
given their overlapping ca-
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reers, this is the first time
that Ms. Streep and Mr. DayLewis are both up for lead
acting awards. Their fans
may wish to see the pair
emerge victorious as a testament to their performances
but also because this is the
last year it could happen, if
Mr. Day-Lewis’s retirement
takes effect as planned.
It has been 50 years since
two such decorated actors
were eligible for acting’s top
prizes. In 1968, Ms. Hepburn
(a Ted Williams-like .400 average in being nominated in
qualifying years) and Spencer Tracy (.290) were nominated for their performances
in the 1967 film “Guess
Who’s Coming to Dinner.”
Ms. Hepburn won, after losing the previous
eight times she was
nominated. While Oscars history shows that
the Academy often
honors legendary performers with nominations, actually winning the top award
is another matter.
Ms. Streep received Oscar
nominations for her roles in,
clockwise from left, ‘The Devil
Wears Prada,’ ‘August: Osage
County,’ ‘The French
Lieutenant’s Woman,’
‘Silkwood,’ ‘The Bridges of
Madison County,’ ‘Doubt’ and
‘A Cry in the Dark.’
EVERETT COLLECTION (7)
Continued from page A13
Hepburn won a record four.
Mr. Day-Lewis has won
three best actor Oscars,
more than any other man.
The Wall Street Journal
calculated lead actors’ Oscar
batting averages based on
billing on IMDB.com, the
film’s poster or both. Only
actors and actresses with at
least six nominations for a
lead performance, and at
least one win, were considered.
Ms. Streep has dominated
the Oscars for decades. This
is her fourth best actress
nod since 2010, excluding
her best supporting actress
nomination for 2014’s “Into
The Woods.” Her dominance
has rarely waned, but her
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A15
LIFE & ARTS
ART REVIEW
More Than
‘American
Gothic’
BY JUDITH H.
DOBRZYNSKI
New York
NOT FAR INTO “Grant
Wood: American Gothic and
Other Fables” at the Whitney Museum of American
Art, visitors meet the probable cause of their visit: the
stern pair of Iowa farmers
who inhabit Wood’s iconic
painting. “American Gothic”
(1930) is so renowned that
when it arrived in London
last year for an exhibition,
the Guardian called it “a
huge moment” because,
save for its appearance in
the same show in Paris
three months before, this
arguably “most famous of
all American paintings” had
never before “left North
American soil.”
The writer, like many
others before and since,
then described the duo as a
man and his wife—not, as
Wood said, a farmer and his
daughter (later acknowledged in a footnote to the
article).
So it goes for Grant
Wood (1891-1942), who is
often misunderstood. With
the aptly named “American
Gothic and Other Fables,”
curator Barbara Haskell offers a corrective. In a display of nearly 120 works,
she argues that Wood is far
more complicated than his
reputation as the sentimental bard of an idealized rural life and an evangelist for
a pure strain of American
art allows.
Rather, she asserts, Wood
regularly infused his meticulously planned paintings
with anxiety, alienation or,
at least, ambiguity. As for
his call for a distinctly
American art, that was
more a matter of
subject than
style. Wood himself emulated
European artists
in creating his
works—but they
were always
about American
people, scenes,
values and identity. (In fairness,
Wanda M. Corn
trod some, but
not all, of this
ground in a
smaller 1983 exhibition—but
that was more
than a generation ago and,
marshaling less
evidence, failed
to make a lasting
impression.)
The exhibition
covers Wood’s entire career,
beginning with his decorative Arts and Crafts objects,
such as a silver coffee pot
(c. 1914) and a wrought-iron
fireplace screen (c. 1929-30).
It displays his early Impressionistic works, his commissioned murals, and a gallery
of posters, book illustrations
and magazine covers
(1932-40). All are proficient—some beautifully so—
and most of them can be
read straightforwardly.
Nor is there anything
dark, for example, about his
sprawling “Dinner for
Threshers” (1934), a cutaway look inside a farmhouse at men coming in
from the fields to eat together. Highly detailed, unified by repeated forms and
patterns, the frieze-like
painting portrays a farming
ritual. It also alludes in
structure and design to the
“Last Supper” paintings by
both Leonardo da Vinci and
Giotto as well as to religious triptychs of that era.
Yet many paintings Wood
made during his mature period, from about 1930 to
1942, after he had fused his
own sharp, clear-eyed style,
do seem to carry something
of a psychological dimension—if not always a sinister one. His stylized landscapes are not “real,” based
on factual observation. One
glance at “Young Corn”
(1931), with its bulbous
trees and swirling fields, or
at “Stone City” (1930), a
rolling, depopulated landscape ribboned with whimsical trees, attests to that.
At a time when the U.S. was
dealing with the Depression,
drought and disillusionment, Wood was trying to
recapture, as the catalog
suggests, the “dreampower” of his childhood—
implying the tension between then and now.
Note, too, that Wood has
painted these naïve scenes
from above, one step removed from the earth that
had grounded him before his
beloved father died, before
his family left the farm for
Cedar Rapids, and before he
began to feel the estrangement of being a sexually repressed, probably gay man.
Wood’s portraits are often sad, or wistful, if not
fundamentally freighted
with anxiety. Works like
“Plaid Sweater” (1931),
which portrays a solemn
young boy holding a football, and “Woman With
Plants” (1929), which depicts his mother holding a
sansevieria plant, known for
surviving tough conditions,
indicate that all is not well
in the rural America he sup-
Grant Wood’s ‘American Gothic’ (1930), above, and ‘Self-Portrait’ (1932/1941), below left
posedly idealized.
But what of “American
Gothic”? What paintings
here could secure Wood’s
reputation without it?
“Daughters of Revolution”
(1932), a sendup of three
haughty women standing
before “Washington Crossing the Delaware,” and “Parson Weems’ Fable” (1939),
recounting the tall tale of
Washington chopping down the
cherry tree, rank
among the candidates. For pure
magic, there is “The
Midnight Ride of
Paul Revere” (1931),
which illustrates
Longfellow’s poem
in a charming, storybook way, with
perfect homes,
lights too bright for
the period, and a
toy horse. Wood’s
virtuosity as a
painter, technically,
is everywhere evident—the velvety
green mounds of
“Spring Turning”
(1936) are just one
example.
Then there is
“Appraisal” (1931),
normally on view at the
Dubuque Museum of Art. In
it, a young woman in country clothes is hoping to sell
her beautiful chicken, its
eye warily meeting the
viewer’s, to an older city
woman in a fur-trimmed
coat. It’s a collision of rural
and urban, young and old,
struggling and rich. Far
from romanticizing rural
America, it’s an emblem of
the unsettling shift from
family farm to industrial
production. In its anxiety
and ambiguity, it is (for me)
at least as deep as “American Gothic.”
Still, when asked, Ms.
Haskell said she could not
countenance a Grant Wood
exhibition without that popular icon. Not yet, anyway.
By giving him broad exposure, this exhibition could
very well change that.
Grant Wood: American
Gothic and Other Fables
Whitney Museum of American
Art, March 2-June 10
Ms. Dobrzynski writes about
culture for many
publications and blogs at
www.artsjournal.com/
realcleararts.
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THE WALL STREET JOURNAL.
A16 | Thursday, March 1, 2018
SPORTS
OLYMPICS
OLYMPICS
USOC Chief Resigns in Wake of Scandal Russia’s
Move comes amid criticism of the association’s response to allegations of abuse at USA Gymnastics
BY RACHEL BACHMAN AND
REBECCA DAVIS O’BRIEN
BY RACHEL BACHMAN AND
DAVID GAUTHIER-VILLARS
MAXX WOLFSON/GETTY IMAGES
U.S. Olympic Committee chief
executive Scott Blackmun is resigning, the USOC announced
Wednesday, a move that comes in
the wake of sharp criticism of the
association’s handling of a sexualabuse scandal at USA Gymnastics.
In a statement, USOC Chairman
Larry Probst cited health concerns
for Blackmun’s departure—Blackmun recently was diagnosed with
cancer, and missed the Olympic
Games in South Korea this month.
“Given Scott’s current health situation, we have mutually agreed it is
in the best interest of both Scott
and the USOC that we identify new
leadership so that we can immediately address the urgent initiatives
ahead of us,” Probst said in a
statement.
Blackmun’s departure comes,
however, at a time when the USOC
and Blackmun have faced mounting questions about how they responded to allegations of sexual
abuse against former USA Gymnastics doctor Larry Nassar.
Members of Congress have
called for probes into the USOC for
its handling of the Nassar scandal
and two senators called for Blackmun’s resignation after The Wall
Street Journal reported that Blackmun and another top USOC official
had been alerted to a possible sexual assault by a gymnastics team
doctor in mid-2015, a year before
allegations about Nassar became
public.
In recent weeks, several prominent gymnasts said they would not
participate in the USOC’s investigation into the Nassar scandal,
saying they didn’t trust the organization to be thorough and independent. Gymnasts said Blackmun
had personally called them to encourage them to participate in the
investigation, being conducted by
law firm Ropes & Gray, even after
the gymnasts’ lawyer told the law
firm his clients didn’t plan to cooperate.
“For 31 months, I heard nothing,” Olympic gymnast Aly Raisman said in a statement to The
Journal two weeks ago. Raisman
was among the national-team
gymnasts who reported concerns
about Nassar to USA Gymnastics
in the summer of 2015, and said
she didn’t hear from the USOC
even after she went public with
her allegations late last year. “I
find it hard to believe after all this
time that the USOC is genuinely
concerned about anything other
than the scrutiny it’s now facing.”
USOC board member Susanne
Lyons will serve as acting CEO
during the search for a permanent
successor, the organization said. In
January, Lyons was selected as
chair of the USOC board’s working
U.S. Olympic Committee CEO Scott Blackmun was recently diagnosed with cancer, and missed the 2018 Winter Games.
group to address issues raised by
the case involving Nassar.
In a news release, Blackmun
said he was “proud of what we
have achieved as a team and am
confident that Susanne will help
the USOC continue to embody the
Olympic spirit and champion Team
USA athletes during this transition.”
More than 150 women have alleged Nassar sexually abused
them. He was arrested in November 2016 and last year pleaded
guilty to state sexual-abuse and
federal child-pornography charges.
Nassar, who is now serving a 60year sentence in federal prison,
was sentenced earlier this year by
two Michigan judges to terms of
up to 175 years and up to 125
years in state prison.
The USOC has offered varying
statements about when it learned
of the allegations against Nassar,
and in what degree of detail.
In late July 2015, then-USA
Gymnastics President Steve Penny
called Blackmun to tell him that a
five-week internal investigation
had found evidence of possible
sexual abuse, and saying he was
reporting the allegations to law
enforcement, the Journal reported.
Penny asked if the USOC—which
oversees the gymnastics governing
body—had any guidance.
Blackmun told Penny to “do
what he had to do,” a person familiar with the call said, but didn’t
provide further guidance. In response to the Journal’s inquiries in
January, Blackmun said he told
Penny to report the matter to law
enforcement.
Two months later, in September
2015, Penny emailed Larry Buendorf, the USOC’s top security official, outlining the gymnasts’ allegations in greater detail, according
Members of Congress
have called for probes
into USOC’s handling of
the Nassar scandal.
to people familiar with the communications.
Buendorf, a former Secret Service agent, has long been scheduled to retire from the USOC after
the Pyeongchang Olympic and Paralympic Games, in March.
After Penny’s outreach in 2015,
neither Blackmun nor Buendorf
provided guidance to USA Gymnastics in the coming months. Nor did
Weather
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Pittsburgh
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St. Louis
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San Francisco
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33
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86
32
33
Today
Lo W
19 pc
48 pc
49 s
79 s
26 pc
11 s
25 c
65 t
70 pc
30 sf
28 sn
Tomorrow
Hi Lo W
32 25 c
62 53 r
72 54 pc
94 79 pc
53 32 s
26 18 pc
36 30 sn
87 66 s
81 67 c
34 31 sn
35 29 sn
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei City
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Today
Hi Lo W
34 22 pc
36 28 sn
86 63 s
73 67 s
38 36 s
87 77 t
62 45 pc
82 56 t
33 31 sn
55 41 r
91 76 pc
69 57 c
78 53 pc
34 30 sn
13 -1 s
97 79 pc
39 33 c
88 77 pc
75 57 pc
56 49 sh
82 70 s
37 21 s
57 42 pc
89 78 t
77 68 s
77 65 pc
62 42 r
38 28 c
46 31 pc
15 7 pc
29 21 sn
2
3
4
5
6
14
7
8
17
11
18
27
28
13
24
29
25
30
35
36
33
37
34
38
40
41
42
43
46
44
47
48
49
50
51
55
56
57
58
59
60
61
62
63
52
29 Pass up
Down
1 Damselfish’s
home
30 ___ Francisco
(Brazilian river)
2 Ross and
Rachel’s
daughter on
“Friends”
22
32
39
12
19
21
31
45
10
16
23
26
9
15
20
53
54
32 “Adios!”
alternative
33 End-of-week
cry
3 Chemist’s
seasoning
34 Party leader
4 They take bows
36 Rudimentary
5 Surprise hit
37 Univ. or acad.
6 “The Old
Gringo” author
Fuentes
40 Battery size
7 Tons
41 Strategist for
Reagan and
Bush
8 Shpeak like
thish
43 Big, like a
concerto
9 1975 Bob Seger
song
44 Long stretch
10 Method: Abbr.
Tomorrow
Hi Lo W
38 29 sn
39 31 r
86 67 s
73 68 pc
51 48 c
88 76 sh
64 47 s
82 56 s
34 30 sn
51 46 r
91 78 pc
78 57 pc
77 51 pc
39 30 sn
15 6 s
97 78 pc
43 32 r
90 78 t
71 56 s
59 42 t
84 69 s
40 28 s
51 49 r
89 78 pc
76 68 c
79 64 s
57 42 s
38 24 c
43 34 r
21 12 pc
38 30 sn
RISKY BUSINESS | By Frank Virzi
Across
24 Rub off
1 Letter collections 26 Gravy morsels
6 Winery stock
30 Dweller in an
asymmetrical
11 Spike Jonze film
shell
that won the
Best Original
31 Shiftless sort
Screenplay Oscar
32 Dis
14 Net delivery
35 A few rounds,
usually
15 Put to rest
16 After
17 Big game figure
18 Crushes
19 Geol., e.g.
20 One might result
in the question
“Where’s the
fire?”
36 Johnny Cash
album
“Happiness ___”
38 Big name in little
bricks
39 Grace
41 Protection
42 Play director
43 Begin to melt
48 Just
49 In a risky
situation, and
something found
four times in this
puzzle
55 Fish that can
swim backward
56 Becomes friendly
57 Strong bone
58 Bleating sound
59 Figure on the
frontispiece of
Mercator’s 1595
work
60 Polishing powder
61 Shooting option,
briefly
22 Company with a
SkyRise line
45 Mucky-muck
62 Like some
questions
23 Spur
47 In ___ (lined up)
63 Shipper’s posting
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
20 8 pc 25 17 pc
Atlanta
72 42 t
60 38 s
Austin
67 43 pc 70 49 s
Baltimore
53 40 r
44 34 r
Boise
44 34 c
43 24 sn
Boston
55 40 c
41 36 r
Burlington
43 34 c
40 31 sn
Charlotte
70 42 t
59 34 s
Chicago
40 28 r
42 27 s
Cleveland
49 31 r
38 27 sf
Dallas
65 39 s
67 43 s
Denver
51 27 pc 64 34 s
Detroit
43 30 r
41 24 pc
Honolulu
81 73 s
82 72 pc
Houston
75 53 pc 73 52 pc
Indianapolis
57 30 r
44 25 pc
Kansas City
51 27 pc 53 36 s
Las Vegas
62 47 c
63 45 c
Little Rock
63 35 pc 57 32 s
Los Angeles
60 52 pc 58 50 r
Miami
86 67 pc 87 66 pc
Milwaukee
40 28 sn 40 30 s
Minneapolis
38 15 sn 39 27 pc
Nashville
63 36 r
56 31 s
New Orleans
81 59 pc 72 54 pc
New York City
56 42 r
44 36 r
Oklahoma City
56 28 s
60 37 s
Flurries
Ice
Today
Hi Lo W
46 25 s
88 68 pc
56 42 r
69 46 pc
55 32 r
51 34 c
49 34 r
55 37 r
52 30 pc
46 41 sn
57 44 r
53 26 s
49 36 r
33 15 s
54 42 r
1
40s
A
g
Augusta
50s
t
Boston
Boise
30s
60s
l
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Buffalo
Hartford
50s
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Detroit
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Sioux
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New
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Cleveland
70s
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Des
Ph
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Philadelphia
40s
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Pittsburgh
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Omaha
Kansas
90s
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Washington
Denver
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San
p i gfi ld Ch
Springfield
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Charleston
Topeka
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C
d
Colorado
h
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Richmond
100+
60s Las
p
Springs
St.. Lou
Louis Louisville
Lou
60s
hit
Wichita
Vega
Vegas
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60s Raleigh
h ill
Nashville
Los A
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Angeles
Charlotte
Ch l
anta Fe
Santa
70s
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Little
C
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Columbia
Albuquerque
Ph
h
Phoenix
klahoma
homa City
Oklahoma
Warm
Rain
Memphis
San Diego
70s
A
Atlanta
T
c
Tucson
h
Dallas
ll
Jackson Birmingham
Ft. Worth D
Cold
T-storms
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60s
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Houston
70s
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they reach out to law enforcement
as a federal investigation into Nassar languished and the doctor continued to treat—and allegedly
abuse—patients in Michigan.
On Feb. 4, the International
Olympic Committee’s executive
board said in a statement it was
“deeply shocked and saddened” by
the abuse scandal. It said it “took
note of the ongoing independent
investigation and hopes that this
will also give clarity to the responsibilities of the different parties.”
The USOC has sprawling duties,
from overseeing dozens of sports’
national governing bodies to raising money to support its operations and boost the medal count at
the Olympics.
It is a nonprofit organization
with an annual budget of $250
million, according to its 2016 tax
filing, much of it coming through
corporate sponsorships. Although
it operates under federal charter,
the USOC receives no direct government funding outside of a few
Paralympic military veteran programs.
Blackmun served as CEO for
eight years. A lawyer by trade, he
previously served as acting chief
executive officer, senior managing
director of sport and general counsel for the USOC.
The International Olympic Committee reinstated the Russian
Olympic Committee on Wednesday
after the IOC confirmed that all
remaining drug tests for Russian
athletes competing at the Pyeongchang Games were negative.
An IOC statement confirmed
that “as stated in the Executive
Board decision of 25th February
the suspension of the Russian
Olympic Committee is automatically lifted with immediate effect.”
In Moscow, the Russian Olympic
Committee expressed “deep relief.”
The past months “have been
some of the most difficult in the
history of Russian sport and history of the Olympic movement in
Russia,” ROC President Aleksandr
Zhukov said in a televised press
conference, holding a copy of the
IOC letter in his hands.
“Today’s news from the IOC is
extremely important,” he said.
“We’ve been fully reinstated.”
It’s not clear what effect the
lifting of the ban will have on Russia’s participation in the Paralympic Games, which begin March 8.
The punishment, which lasted
just less than three months, was
imposed after a finding that Russia had engaged in a state-sponsored doping scheme at the Sochi
2014 Olympics. Russia was prohibited from using its flag or anthem
during the Pyeongchang Games,
but 169 athletes cleared through a
testing process were invited to
compete under the label “Olympic
Athletes from Russia.”
Russia won 17 medals at the
Games, including a coveted gold in
men’s hockey.
Two Russian athletes failed
drug tests during the Pyeongchang
Olympics—a curler whose bronze
medal was later revoked, and a
bobsledder who finished 12th. IOC
officials said those test results
persuaded officials not to lift the
sanction earlier and allow Russian
athletes to carry their flag in the
closing ceremony.
IOC president Thomas Bach
said in a news conference Sunday,
however, that “there was no indication that these two cases were
due to a systematic approach.”
Zhukov said Russia still faced
the challenge of convincing the
World Anti-Doping Agency to reinstate its national anti-doping
agency, known as RUSADA.
“There is a lot of complicated
work left,” Zhukov said.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
30s
Olympic
Ban
Lifted
45 Masters pieces
46 NBA Rookie
of the Year in
1993
11 “Adios!”
alternative
47 Hindu soul
12 Castilian hero
50 Some addresses
13 Bring up
21 Works on walls
22 World Series
champs of 1966,
1970 and 1983
25 “Kapow!”
51 Capital
nicknamed
“La Ciudad de
los Reyes”
52 “Oh, that’s
likely!”
26 Taunting remark
53 Mucky ground
27 Massive star
54 Cartographer’s
notches
28 Like bricklayers
and plumbers
56 Method
Previous Puzzle’s Solution
S H A R
P A P A
A L B I
S
S P I
R H I N
E L V E
H O O T
AM T
B O S C
L
E L A I
T O S C
N A S H
A N T E
E
L
N
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N
O
S
S
A
U
N
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WE
A T
O S C
P
E T
C E R
T H
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G S
E
R E H
Y O U
S E
B
O P
A R E
A D
P I U
O S C
R E E
T S
E
D
N G E
D E C
T A
E A R
R
L
A
O
L
A
C
A
S
A
E
A
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P
T
R
O
T
S
E
W
S
R
O
V A
AM
M E
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S
T
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N
T
L S
O Y
A R
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A17
OPINION
That Trump CPAC Speech
This is conservatism
that is radical, private
sector and obsessed
with creating work.
I watched the same speech
and saw something else—and it
mattered, whether one is a
Trump supporter or opponent.
That Trump speech was an important stop on the admittedly
long road to understanding this
presidency.
Because CPAC is the annual
meeting of conservatism’s hardest core, it would not have been
a surprise if Mr. Trump merely
delivered 70 minutes of bleeding red meat. But the speech
was more than red meat.
Within one minute, Mr.
Trump said: “Do you remember
I started running and people
said: Are you sure he’s a conservative? I think now we’ve
proved that I’m a conservative.”
He’s right. There was little
reason to believe Donald Trump
was a conservative when he
belly-slammed into the GOP
primary pool. He was
an ideology-free zone.
What, many wondered,
would he turn out to be
as president?
At CPAC he made
clear he has concluded
that his political interests and legacy—and
perhaps even his survival—are best served
inside the structure of
the conservative tent.
A cynical explanation of this conservative self-baptism would be that
he hears the hooves of Robert
Mueller’s posse and will need
friends to fight the impeachment lynch mob if Lady of the
Left Nancy Pelosi is House
speaker. That explanation for
Mr. Trump’s turn toward conservatism is plausible but not
sufficient.
As the basis for his claim,
Mr. Trump listed his appointment of conservative judges, his
deregulatory initiatives and the
tax cut. Nearly all of his Republican primary opponents would
have done these things, too. It’s
not obvious, though, that the
others would have gone so
deep. The Trump policies, especially his deregulation, aren’t
merely conservative. They are
radically conservative.
Who among Mr. Trump’s
GOP opponents would have canceled and denounced the Paris
Climate Agreement or tried to
open virtually the entire U.S.
coastline to oil and gas drilling?
The regulatory rollback, abetted
by the Republicans’ use of the
Congressional Review Act, was
vast and sudden—covering energy, finance, labor law, the environment and education.
In the speech, Mr. Trump
said he thought the deregulation had “as big an impact” as
the tax cuts. It was in fact the
part explains the Beltway-wide effort to shut
down this presidency by
any means possible, including the quixotic 25th
Amendment.
So what matters in the
private world of Donald
Trump? The answer was
in the CPAC speech. The
“private-sector guy” is
about one thing: jobs.
Also known as employment and work.
Every president claims
to be a jobs president, but after
a year it is becoming clear that
this may be the only thing Donald Trump thinks about. He may
even impose tariffs soon on imported steel, seeing only the
protected jobs in front of him
and missing the larger loss of
jobs in steel-using industries.
Is his elevation of the private
sector working? The Federal
Reserve’s latest Monetary Policy Report said Friday “the labor market in early 2018 appears to be near or a little
beyond full employment.”
Donald Trump’s critics say
this isn’t enough, that it doesn’t
justify the corrosion of public
discourse. It’s a legitimate
point. A CPAC audience shouted
at pro-immigration remarks by
a Cato Institute speaker with an
incivility normally seen among
the campus left.
Politics will always be the art
of the possible, but no one
promised it would also be artistic. And perhaps compulsive inartfulness will be Donald
Trump’s undoing.
For now, we are discovering
what a presidency of radical, private-sector, jobs-obsessed conservatism looks like. For those
who want something other than
that, the presidential primaries
await their alternatives.
Write henninger@wsj.com.
RON SACHS/ZUMA PRESS
Watching President Trump’s
speech to the
American Conservative
Union’s CPAC
conference, an
WONDER
MSNBC anaLAND
lyst said it
By Daniel
called to mind
Henninger
five things: Fidel
Castro,
Hugo Chávez, Mahmoud Ahmadinejad, Vladimir Putin and
the president of Turkey. A Vox
headline about the speech said,
“He riles up crowds, but nothing
he says actually matters or reflects administration policy.”
booster rocket beneath the—
again radical—40% cut in the
corporate tax rate.
At the time, his critics, such
as Mrs. Pelosi and Chuck
Schumer, said Donald Trump
was doing all this to benefit his
wealthy corporate friends. It’s
now evident how off the mark
that is.
Departing from the CPAC
text, Mr. Trump said that before
he became president, “I was a
private-sector guy.” It is important to understand what he
means by the “private-sector
guy.” It’s not his golfing pals.
Every Republican president
from Ronald Reagan onward,
and all GOP candidates, has
used “the government” as an
ideological foil. This president
rarely mentions “the government” or the public sector.
For Donald Trump, the federal government seems to exist
as a kind of distant abstraction—with the military occupying a separate space of heroes
and service.
CPAC-style conservatives actively dislike the administrative
state. But what’s driving Washington nuts is that Donald
Trump doesn’t seem to care
much about them or what they
do (and that may include an
obliviousness to levels of public
spending). His disdain in large
Good News for Senate Republicans
By Karl Rove
T
alk of a Democratic midterm sweep may be premature. In recent weeks,
the chance that Republicans
will hold or even expand their
Senate majority was boosted by
two unexpected events: North
Dakota Rep. Kevin Cramer decided to challenge Democratic
incumbent Sen. Heidi Heitkamp, and Arizona Rep. Martha
McSally launched her bid for
retiring Republican Sen. Jeff
Flake’s seat.
Since World War II the
president’s party has lost
House seats in 16 of 18 midterms, while in the Senate the
president’s party has broken
even or picked up seats in five
midterms.
Only a third of senators are
up for election in a given cycle,
meaning each party’s prospects
vary depending on which
states are in play. Of the 34
Senate seats up this fall, 26 are
held by Democrats and only
eight by Republicans. Ten Democratic seats are in states President Trump carried in 2016,
and only one Republican senator—Nevada’s Dean Heller—
will face re-election in a state
Hillary Clinton won.
The GOP’s best shots to pick
up seats are in five states Mr.
Trump won by double digits.
One is North Dakota, which
the president carried with 63%
of the vote. The same night
Mr. Trump earned 216,794
votes and a 36-point victory,
Rep. Cramer received 233,980
votes for his 45-point margin.
In 2012, when Sen. Heitkamp
and Rep. Cramer both won
for the first time, she got
161,337 votes and a 0.9-point
margin while he received
173,585 votes and a 13.2-point
margin.
Ms. Heitkamp’s voting record offers Republicans plenty
of ammunition. She has voted
against Mr. Cramer and the
state’s popular senior senator,
Republican John Hoeven, on
issues like tax cuts, health
care and energy—energy being of particular concern because North Dakota is America’s second-biggest producer
of crude oil. Mr. Cramer is
also a superb grass-roots campaigner, which matters in a
state where politics is personal and voters are clustered
on the center right.
Then there’s Arizona. Republicans were worried about
the seat even before Sen. Flake
announced his retirement last
October, leaving the primary
field wide open to far-right
candidate Kelli Ward, who unsuccessfully challenged Sen.
John McCain in 2016 and is
backed by Steve Bannon.
Many Republicans applauded when Rep. McSally
announced that she’d enter
the race. An Air Force Academy grad, Ms. McSally was the
first female American combat
pilot—flying an A-10 Warthog
in the Gulf War—and the first
woman to command a fighter
squadron. She also successfully sued in 2001 to overturn
a Defense Department policy
requiring U.S. servicewomen
in Saudi Arabia to wear abayas
and headscarves off base.
After beating an incumbent
Democrat by 161 votes in 2014,
Rep. McSally was re-elected in
2016 with 57%, running 13
points ahead of Mr. Trump in
Arizona’s most competitive
district, centered in Tucson.
She now faces an August
primary against Ms. Ward and
85-year-old former Maricopa
County Sheriff Joe Arpaio. After being found guilty of
Strong candidates
emerge to take a seat
in North Dakota and
hold on in Arizona.
criminal contempt for ignoring a court order against racial profiling, Mr. Arpaio lost
his re-election in 2016, trailing the entire GOP ticket. He
and Ms. Ward will split the
hard right, improving Ms. McSally’s chances.
Ms. McSally’s supporters
were cheered by the public response when she launched her
campaign last month, flying
around Arizona in a T-6 trainer
that was used to instruct members of the Women Airforce
Service Pilots in World War II.
She told enthusiastic crowds,
“I’m a fighter pilot and I talk
like one,” and joked that congressional Republicans should
“grow a pair of ovaries and get
the job done.” This occasional
saltiness has made her a favorite of Mr. Trump.
Ms. McSally has also been in
the news recently as a principal
author of the House immigration bill that bolsters border security, reforms legal immigration and provides a path to
citizenship for Dreamers.
Her military background is
a big plus with Arizona’s
large veteran population, and
her record on taxes, spending
and defense is attractive in a
state that wants its leaders to
be both conservative and
constructive.
The likely Democratic nominee is Rep. Kyrsten Sinema,
who had $5.1 million cash on
hand at the end of last year.
Ms. Sinema represents a
Phoenix district, which gives
her high name recognition in
the state’s largest media market. But Ms. McSally’s launch
has already bolstered her recognition and made her competitive in general-election
matchups.
With a two-seat margin in
the Senate, Republicans must
see that Sen. Heller is returned in Nevada and avoid a
repeat of last year’s Alabama
disaster by helping Mississippi
Sen. Roger Wicker overcome a
primary challenge from an eccentric firebrand. But the
races in North Dakota and Arizona will play a key role in the
midterms, and Republicans
should be pleased to have such
promising candidates in Reps.
Cramer and McSally.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
No, Libertarians Don’t All Have Autism
By Mathieu Vaillancourt
N
ancy MacLean is a historian at Duke University and an opponent of
libertarian and classical-liberal political philosophy. Critics have called her 2017 book
on the subject, “Democracy in
Chains: The Deep History of
the Radical Right’s Stealth
Plan for America,” biased and
inaccurate. I don’t know
enough about her work to
judge its quality. But I’m angry about something she said
recently.
“It’s striking to me how
many of the architects of this
cause seem to be on the autism
spectrum,” Ms. MacLean said
during a February talk at New
York City’s Unitarian Church of
All Souls. “You know, people
who don’t feel solidarity or
empathy with others and who
have difficult human relationships sometimes.”
I consider myself a classical
liberal. I believe in the power
of free markets and sound
money to generate prosperity.
Trade and technological progress allow us to live longer,
A Duke historian
resorts to ignorant,
ugly stereotyping.
healthier, easier lives. I believe
in a social policy that leaves
people alone to make personal
decisions as long as they don’t
hurt others. I see my political
ideology as a consistent defense of freedom, and I regard
both prosperity and tolerance
as noble values.
I also have autism, and I
would like to set the record
straight about what that means.
Specialists in the field long ago
debunked the simplistic stereotype that people with autism
have no feelings or compassion.
We can be empathic and express feelings, but we tend to
do it in a different way.
I have trouble making eye
contact, for example. But that
doesn’t mean I am not listening to you when you talk. In
fact, I tend to listen better
when I’m not trying to make
eye contact, because my brain
is more focused on processing
the words I hear.
Ms. MacLean is equally
wrong in stereotyping people
with autism as libertarians.
Like everyone else, we believe
in different political ideologies and vote for different political parties. We’re humans,
not robots.
Nor are classical liberals and
libertarians emotionless, compassionless people. The vast
majority of us believe in helping the needy; we simply think
aid is better given in a bottomup, voluntary way than dispensed by a centralized government. We disagree among
ourselves on how to achieve social goals. But it’s outrageous to
suggest that we don’t care.
I don’t think Ms. MacLean is
necessarily a bad person. I admire her for writing a book,
which takes courage and willpower. I hope that she will take
some time to educate herself
about autism, because ignorance is not a good look for a
scholar. Sometimes it’s better—
and more compassionate—to
say nothing.
Mr. Vaillancourt is a writer
based in Ottawa.
BOOKSHELF | By Nancy Rommelmann
Justice
Miscarried
The Cadaver King and the Country Dentist
By Radley Balko & Tucker Carrington
(PublicAffairs, 391 pages, $28)
I
n “The Cadaver King and the Country Dentist,” a superb
work of investigative reporting, Radley Balko and Tucker
Carrington expose a grotesquely broken system, in which
two men “dominated” death investigations in Mississippi for
two decades from the early 1990s. Medical examiner Steven
Hayne and his friend dentist Michael West, the authors write,
offered sloppy evidence and dubious testimony that helped
prosecutors in Mississippi get the convictions they sought.
Lacking a permanent medical examiner, Mississippi
parceled out autopsies to private doctors. Dr. Hayne, a
professed workaholic whom one attorney described as “both
insecure and an egomaniac,” performed 80% of the state’s
autopsies—as many as 1,800 a year, or seven times the
suggested limit within the profession. Dr. West was “brash,
ambitious, and, at times, breathtakingly reckless,” Messrs.
Balko and Carrington write, and relied on a signature technique involving special light and yellow glasses that he called
the “West Phenomenon” to find bite marks invisible to the
naked eye. That the men were paid by the piece, so to speak,
meant that Dr. Hayne at one point received as much as $2
million a year for autopsies. (Both Dr. Hayne and Dr. West
have defended their work
and denied any wrongdoing.)
Dr. Hayne and Dr. West’s
activities, the authors argue,
reinforced a social order that
kept one class of citizen under
persecution. In Mississippi,
this persecution historically
meant the intimidation and
murder of African-Americans,
specifically young black men.
Mr. Balko, a journalist at the
Washington Post, and Mr.
Carrington, a defense attorney
and the director of the University
of Mississippi’s Innocence Project,
introduce us to two of these men. In 1990,
Levon Brooks, 32, was cooking at a nightclub when 3-yearold Courtney Smith was kidnapped, sexually assaulted and
murdered. Two years later, 19-year-old Kennedy Brewer was
sleeping when his girlfriend’s daughter, Christine Jackson,
also 3, was kidnapped, raped and murdered.
The girls lived a few miles apart. The crimes were nearly
identical. It would make sense for the police to look for the
same killer. They even had a suspect, Justin Johnson, a
known sex offender who was questioned but released. This
decision proved catastrophic: Johnson (who later confessed
to both crimes) remained free to kill Christine Jackson, while
Brooks was sentenced to life. Mr. Brewer was sent to death
row. The men spent a combined 30 years in prison before
DNA evidence proved their innocence and set them free.
It didn’t seem to matter to the authorities whether Christine Jackson was strangled (as Dr. Hayne claimed) or
drowned (as proved to be the case); whatever got the jury to
“guilty” faster. “The dental structures of one Levon Brooks
did indeed and without a doubt inflict the bite mark found
on the body of Courtney Smith,” Dr. West wrote, of a bite
that, it turned out, did not exist. The same wording (“indeed
and without a doubt”) was used to condemn Mr. Brewer,
despite complaints that Dr. West’s system was of “little
value, scientifically unproven, and not yet validated or
accepted by most of his peers,” as another judge later wrote.
For two decades, one doctor performed up to
80% of all autopsies in Mississippi—and his
testimony helped put innocent people in prison.
If the convictions that Dr. Hayne and Dr. West helped
secure against Brooks and Mr. Brewer were a farce, they
were not without precedent. What passed for forensic expertise in Mississippi at the time reads like something out of a
Coen brothers movie: In 1983, 11 of the state’s 82 coroners
could not read or write. One coroner sawed off a head and
claimed that the head fell off on its own.
Whether they admitted it or not, those in power in
Mississippi were destroying innocent people’s lives, as they
had for generations. The history offered by Messrs. Balko
and Carrington is stark. Between 1882 and 1947, 577 people
were lynched in Mississippi (the most in any state), their
deaths recorded by coroners as “at the hands of persons
unknown.” In the 1990s, a wave of young black men jailed
for crimes as trivial as traffic violations were found hanging
in their cells. Their deaths were ruled suicides.
Judges and juries bought determinations like those by Dr.
Hayne and Dr. West after being dazzled by “science” that
they did not understand. “All that mattered was that the
defendant was dangerous or evil,” write the authors. Another
incentive was Gov. Kirk Fordice’s 1994 plea to lawmakers to
“make Mississippi the capital of capital punishment.”
“The real problem [was] a thoroughly corrupt and inadequate system, in which black people and other minorities are
traditionally regarded as something less than human,” a
medical examiner is quoted as saying. When he and others in
Mississippi pushed for accountability, they were forced from
power. Accountability was not what prosecutors wanted, but
convictions.
The board certification that Dr. Hayne touted would turn
out not to exist, and Dr. West would be caught on videotape
apparently administering bite marks to a corpse. Yet prosecutors defended the men’s work. Only in 2008 did the state
of Mississippi drop Dr. Hayne; by 2014, a federal court
described him as “now-discredited.” In 2012, Dr. West
confessed in a deposition, “I no longer believe in bite mark
analysis.”
Messrs. Balko and Carrington combine expertise, industry
and outrage into a searing narrative. And while one unreservedly hopes that “The Cadaver King and the Country
Dentist” will spur reform in Mississippi’s system of justice,
there is reason to doubt it will.
“Looking back, I can’t believe that I bought into all of
that—that I believed West’s ‘science’ was really science. I
wish I had voted differently,” said a former chief justice of
the Mississippi Supreme Court, which in 1997 upheld
Brooks’s conviction and life sentence. Years later, he filed a
post-conviction relief petition on behalf of another man who
had been “convicted partly as a result of questionable testimony from Steven Hayne.” The justice’s former colleagues
unanimously rejected the petition.
Ms. Rommelmann’s latest book, “To the Bridge: A True
Story of Motherhood and Murder,” will be published in
July.
.
THE WALL STREET JOURNAL.
A18 | Thursday, March 1, 2018
OPINION
P
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The White House Family Business
Who Has Authority? Who’s Being Partisan?
olitics is blood sport, as presidential son- mation that could be helpful in his role as a mein-law Jared Kushner is learning the hard diator between Israel and the Palestinians. He
way. The 80% of Washington that wants also won’t be able to see the President’s daily
Donald Trump out as President
intelligence briefing. While
is now targeting Mr. Kushner Jared and Ivanka have to Mr. Kushner has other policy
as a means to that end.
such as prison redecide if they’ve become portfolios,
Hiring family for high-proform, his value as a formal
political liabilities.
file jobs is always high politiWhite House adviser will be
cal risk. Proximity to the
diminished.
throne means they may intimiThe larger problem is
date dissenting views that need to be heard. that—thanks to another leak—we know Mr.
Their loyalty can be an asset, but they inevitably Kushner is on special counsel Robert Mueller’s
become high-profile political targets. Above all subject list. This includes his personal business
they are hard to fire even when they become lia- dealings. Last year Mr. Kushner offered the
bilities. Exhibit A is Hillary Clinton, who brought House and Senate Intelligence committees an
scandals like Travelgate and cattle futures and account of what he said were his complete dealthe debacle of HillaryCare as first lady.
ings with Russians during the presidential camMr. Kushner is merely an in-law, but he poses paign. But only he and his lawyers know if there
some of the same political risks. The latest up- are other vulnerabilities. If there are, he and
roar concerns the loss of his interim “top se- President Trump would both better off if Mr.
cret” security clearance on Friday as the FBI Kushner were out of the White House before
continues its clearance investigation. After the they become public.
fiasco over former White House aide Rob PorGiving up their White House positions would
ter’s clearance, chief of staff John Kelly has put be a bitter remedy, but Mr. Kushner and first
a limit on interim clearances. Mr. Kelly is right daughter Ivanka could still offer advice as outnot to make an exception for Mr. Kushner, siders. Every President needs loyal counselors
which would have inevitably leaked and looked detached from the White House hothouse, and
like family favoritism. This is another example George W. Bush sometimes played that role for
of Mr. Kelly’s value to the President.
George H.W. Bush. There are specific and signifMr. Kushner’s enemies piled on Tuesday with icant diplomatic roles the two could perform,
an egregious leak to the Washington Post that or projects they could lead, such as Ivanka’s adforeign countries including China and Mexico mirable performance at the Olympics.
have discussed how to exploit Mr. Kushner’s
Mr. Trump’s second year could determine his
vulnerabilities in negotiations. Imagine that: A presidential fate as Mr. Mueller’s probe rolls on
foreign country trying to exploit the weak- and midterm elections give Democrats a chance
nesses of American counterparts. The leak gave to take the House and impeach him. Mr. Trump
away to the foreign officials who discussed this needs the discipline that Mr. Kelly has imposed,
that the U.S. was spying on them. Let’s hear no and the White House announced Wednesday
more complaints from the media about compro- that communications aide Hope Hicks plans to
mising “sources and methods.”
resign after she became a political target.
However outrageous, the leak is proof that
Mr. Kushner and Ivanka have to decide if
the long knives are out for Mr. Kushner, and they’d serve themselves and the President betthey’ll keep slashing. Without a top-secret ter by walking away from their formal White
clearance Mr. Kushner will lack crucial infor- House roles.
A
Trump vs. Jeff Sessions
nyone who serves in a presidential cabi- ing commission by George W. Bush. In 2012 Mr.
net understands that the job comes Horowitz released a scathing report on the
with people trying to undermine you. Obama Justice Department’s handling of “Fast
But in the Trump Administraand Furious,” a botched operaIf he really wants FBI tion that put weapons in the
tion the undermining too often seems to come from the
hands of Mexican drug cartels.
answers, why not
President.
Mr. Trump might also recall
declassify everything? that when the FBI said it
That’s the pickle Jeff Sessions finds himself in. On
couldn’t find 50,000 texts beWednesday morning President
tween FBI lovers Peter Strzok
Trump used Twitter to call his Attorney General and Lisa Page, Mr. Horowitz announced that his
“DISGRACEFUL!” for asking the Justice Depart- office had recovered them.
ment’s inspector general to look into possible
Unlike in July, this time Mr. Sessions reeavesdropping abuse by the FBI. Mr. Trump sponded publicly that Justice had “initiated the
went on a similar tear in July, when he accused appropriate process” to investigate the FBI isMr. Sessions of being “VERY weak” in handling sues. He added that as long as he is AG, he’d
the Hillary Clinton investigations.
continue to discharge his duties “with integrity
Mr. Trump prides himself on his business and honor” and the department would do its
acumen, but we don’t know a CEO who thinks work “in a fair and impartial manner.”
the way to get the best out of subordinates is
Mr. Trump has a point about investigations
to humiliate them in public. Mr. Sessions is At- dragging on without conclusions. But a big reatorney General because Mr. Trump chose him. son is that key government institutions, includIf Mr. Trump’s purpose is to goad Mr. Sessions ing the FBI and Justice, have stonewalled efinto resigning, he ought to know that he’s un- forts to get answers. Yet for some reason he
likely to get a replacement through the Senate. refuses to use his presidential power to declasThat means the department would be run by sify the FISA court and FBI documents so the
someone Mr. Trump might like even less, e.g., public can judge.
Deputy AG Rod Rosenstein.
Instead of whining about Mr. Sessions, Mr.
In his tweet the President also derided In- Trump could order him to appoint someone at
spector General Michael Horowitz as “an Obama Justice with the sole responsibility of making
guy.” It’s true his appointment dates to 2012, but public the documents that would give the
the IG was also appointed to the federal sentenc- American people the answers they deserve.
O
Cleaning Up the Cleaned Up Tax Code
ne risk for the political success of the ports eluded the state’s income tax by earning
GOP tax reform is that some busi- income through an LLC. State revenues sufnesses will manipulate a large new de- fered, and the left claims this is proof that
duction that could reduce
cutting taxes can’t increase
A new carve-out for
federal revenue and discredit
revenues through economic
the project. An early warning
growth, though the Kansas
farm
co-ops
is
a
GOP
is a carve-out that benefits
problem was in the details.
embarrassment.
some farmers, a clunker that
The co-op provision’s auought to be corrected.
thors, Senators John Hoeven
The new tax law allows a
and John Thune of North and
larger deduction for farmers selling to farm South Dakota, respectively, have said the discooperatives versus other operators. The pensation should be fixed, though the quespractical effect is a tax advantage for selling tion is how. Scott Greenberg of the Tax Founto cooperatives, which has no economic ratio- dation laid out some possible fixes, and the
nale. Some farmers could use the loophole to best route would be to dump the separate cozero out their taxable income.
op deduction altogether.
The tax bill is a plus for simplification overBut Democrats are invested in the failure
all, both on the individual and corporate side. of Republican tax reform and won’t be eager
But the farm co-op loophole exploits an excep- to lend votes to correct the problem. Lawyers
tion that created a large deduction for busi- and accountants are also working to devise
nesses organized as “pass-throughs.” The new new strategies for tax arbitrage, and the farm
section allows filers to deduct 20% of qualified cooperative issue may be one of several that
business income. But some filers can deduct lawmakers need to fix.
20% of qualified co-op dividends, which is
The best legislative option would be reconbroader. The ostensible point was to preserve ciliation, the Senate procedure that allows the
preferences for co-ops in the old code.
GOP to pass a bill with 51 votes. Yet invoking
Individuals and pass-throughs used to pay reconciliation requires a new House-Senate
the same tax rate, but Republicans decided to budget resolution, and Majority Leader Mitch
separate the individual rate from the pass- McConnell has said that he may not have the
through rate in their reform. Individuals who votes to pass a budget. Count that as one conearn wages at a corporation get no such de- sequence of the GOP losing the Senate special
duction and did not receive commensurate re- election in Alabama and now wielding a thin
lief in top marginal tax rates.
51-49 majority.
The inevitable problem is defining what
One way or another Republicans have to
qualifies for the new pass-through deduction, make technical corrections to the tax bill, and
and the cautionary tale is Kansas. Former Gov- lawmakers could address this issue in the
ernor Sam Brownback’s tax plan lowered the finer details of the pending budget bill. The
rate on pass throughs to zero, and soon every party rightly argued throughout the reform
resident of Topeka wanted to be a walking debate that changes in tax rates can unlock
small business.
new dollars for the Treasury. Provisions that
The notorious example is University of Kan- erode the tax base will damage this intellecsas sports coaches who according to press re- tual cause and the GOP’s political prospects.
Your editorial “Pennsylvania’s Redistricting Coup” (Feb. 21) is spot on.
This entire exercise, while cloaked in
“litigation,” is and has been nothing
more than the ultimate partisan gerrymander—one brought about by Democratic Gov. Tom Wolf acting in concert
with politically connected litigants to
change the congressional lines mid-decade. And why? To stop the agenda of
the duly elected president and congressional majorities.
The Pennsylvania House of Representatives passed the 2011 Pennsylvania congressional map by a vote of
136-61, 100 Republicans voted “yes”
and 36 Democrats voted “yes.” It was
necessary to have 102 votes to pass the
bill. This map was the result of bipartisan work between representatives
elected by their constituents.
We have now used the existing
maps for three straight elections. It
wasn’t until President Donald Trump
was elected that a flurry of liberal activists began challenging congressional
maps across the country, including
Pennsylvania.
A three-judge federal court panel in
the Agre v. Wolf case upheld the 2011
Pennsylvania congressional map as
constitutional with respect to the U.S.
Constitution on Jan. 10, 2018. Less
than two weeks later, the Pennsylvania
Supreme Court invalidated the 2011
Pennsylvania congressional map on the
basis of the state constitution—which
has no explicit language addressing
the drawing of congressional district
lines. The Pennsylvania Supreme Court
did this on a partisan 5-2 split.
The state Supreme Court gave the
Assembly until Feb. 9—18 days—to
submit a remedial map to the governor. The court didn’t file its opinion
until Feb. 7, two days before the Assembly’s deadline. Further, the governor had until Feb. 15, just six days after
the submission date, to reject the submission and to submit a map of his
own. He did so shortly before midnight
on Feb. 15. The Pennsylvania Supreme
Court issued its own partisan-motivated map on Feb. 19.
The Pennsylvania Supreme Court
didn’t have the power to invalidate the
constitutional, democratically passed
congressional map. In allowing the
Pennsylvania Supreme Court to invalidate federal congressional lines and to
draw lines of their own, the U.S. Supreme Court will allow chaos to ensue
throughout the U.S. If the U.S. Supreme Court doesn’t stop this “coup,”
this same disingenuous approach to
the proper functioning governance is
coming to other states.
MIKE TURZAI
Harrisburg, Pa.
Mr. Turzai is speaker of the Pennsylvania House of Representatives.
If the Pennsylvania legislature had
not overreached so egregiously with
its extreme gerrymandering, a judicial
remedy wouldn’t have been necessary.
Be thankful for our system of checks
and balances. Voters should pick their
representatives, not the other way
around. Let’s replace partisan redistricting with nonpartisan citizen committees to draw fair districts. Districts
should be as simple, compact and convex as possible, based on historic, natural geographic and economic relationships and not drawn for partisan
purposes or to favor any party.
GEORGE HIBBARD
Cambridge, Mass.
If the U.S. Supreme Court someday
decides that partisan gerrymanders
may violate the U.S. Constitution, it
had better come up with a formula or
a standard that would apply to all
states, i.e., Illinois. Jigsaw-puzzle makers should hire some of the Democrats
who have gerrymandered Chicago’s
Cook County and its surrounding counties to ensure that a Republican would
never again elect a representative to
the U.S. House of Representatives.
ROBERT GEBHARDT
Johnsburg, Ill.
Umpires are supposed to call balls
and strikes, not pick up a bat and play
the game. The Pennsylvania Supreme
Court should get back to calling balls
and strikes.
JEFF BUKOWSKI
Reading, Pa.
Maybe ‘Entitlements’ Isn’t the Word to Use
Regarding your editorial “The Deficit Problem in a Chart” (Feb. 13): I
am 71 years old, collecting Social Security and enrolled in Medicare benefits at the age of 70. I must point
out that Social Security and Medicare aren’t entitlements to those
who have paid into both handsomely
throughout their careers.
To my knowledge, most who receive Medicaid or food stamps or
other forms of welfare haven’t specifically contributed to those funds
beyond what the rest of us have. My
guess is that many, if not most, have
contributed vastly less than the benefits they receive. The chart is interesting but lacks important elements.
What is the net outlay to individuals
across those different programs after subtracting the input (e.g., Social
Security and Medicare) contributed
to the program? What is the net outlay after subtracting the input and
multiplying that input by what could
have been obtained by assuming av-
erage equities and bond yields
(50/50 each) over the periods depicted in the graph? Even more interesting, how do those numbers
compare for those who have contributed throughout the graph’s interval
and those who haven’t? I don’t know
the answer but I’m pretty sure that
it wouldn’t support the notion that
those of us are “whining about debts
and deficits” for inadequate reasons.
MICHAEL MAURER
St. Louis
The entitlement problem cannot
be solved for three reasons: The
beneficiaries of “income transfers”
will not support change, the Democrats will not support change in
“payments for individuals” for fear
of not getting elected, and the Republicans will refuse to reform “entitlements” for fear of not getting
elected.
FRANK JURENKA
Sarasota, Fla.
Disrupters of Free Speech Must Pay a Price
Regarding Tunku Varadarajan’s
“The Weekend Interview with Robert
J. Zimmer” (Feb. 17): The University
of Chicago and its president, Robert
J. Zimmer, certainly stand out in today’s academy for their insistence on
free speech on campus. The “conversation” which his students hope to
have in March with former presidential adviser Steve Bannon reminded
me of a controversial speaker I heard
at the university in 2009.
“Conversations with the Honorable
Ehud Olmert, former prime minister
of the State of Israel” was to be
about Israel’s efforts to achieve peace
with Palestinian leader Mahmoud Abbas. Efforts had been made to prevent the talk, and some 150 protesters gathered outside the auditorium.
The event was free and open to the
public only by advance registration.
All attendees passed through a metal
detector and many were wanded.
Before Mr. Olmert (who was booed
by audience members from the moment he stepped onto the stage) uttered a word, the moderator read the
rules of civil conduct that had been
handed out to the audience. Notwithstanding, there was virtually nonstop
heckling from start to finish during
the 90-minute program. The moderator interrupted the bedlam after
some 30 minutes to proclaim: “This
is not an honorable way to behave,
and you should be ashamed,” which
made not the slightest impact on the
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.
disrupters. It wasn’t until an hour
into the program that Mr. Olmert
was able to deliver his message, and
by then a photo-op with him had
been canceled, 31 attendees had been
forcibly ejected, a fight had broken
out and nearly half of the 425 people
admitted to the hall were gone.
DOUGLAS WERTHEIMER
Editor, Chicago Jewish Star
Skokie, Ill.
While Mr. Zimmer is confident
Mr. Bannon won’t be shouted or
shut down, what will he do if he is,
or if there is violent or destructive
behavior? The concept of freedom
of speech, after all, does assume
consequences.
JERRY SLASKE
Milwaukee
Pepper ...
And Salt
THE WALL STREET JOURNAL
“And please stop saying,
‘It is what it is.’ It isn’t.”
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | A19
OPINION
By Ted Rall
T
he rise of Donald Trump
has prompted endless analysis about the populist
right, what it is and what it
wants. Now it’s time to
consider a neglected segment of the
electorate—the populist left.
Progressive populists scored an
upset this past weekend, when California Democrats at their annual
convention declined to endorse liberal stalwart Sen. Dianne Feinstein,
who is seeking a fifth full term. “The
outcome of today’s endorsement
vote is an astounding rejection of
politics as usual, and it boosts our
campaign’s momentum as we all
stand shoulder to shoulder against a
complacent status quo,” crowed her
progressive opponent, state Senate
leader Kevin de León, who along
with Ms. Feinstein will face voters
in June.
Bernie Sanders was a
portent of the populist
left’s rise. Now even Dianne
Feinstein looks vulnerable.
A civil war rages among Democrats in the wake of Hillary Clinton’s
defeat. Mainstreamers are coming
under attack from their left flank,
with the sharpest broadsides emanating from the postindustrial Midwest. “We need to unite the agenda
and unite the Democrats right now
around a strong economic agenda,”
Rep. Tim Ryan of Ohio, who tried in
2016 to depose Nancy Pelosi as
House minority leader, said in February. The left has growing numbers,
enthusiasm and a potent small-contribution fundraising model. As they
pull the party away from the center,
the perpetually lamented polarization of America will continue.
Excluded from both parties, left
populists are a significant slice of
the 37% of Americans who prefer socialism or even communism over
capitalism, according to a 2017 YouGov survey. Like their counterparts
on the right, left populists resent political, cultural and economic elites.
They distrust big business, academia, the major political parties
and corporate media outlets that
prop up a self-interested establishment. They believe the system exploits hardworking Americans to fatten corporations and wealthy
individuals.
Left populism is distinguished
from the left centrism that currently
dominates the Democratic Party. Left
centrists seek reform, not revolution.
President Obama wanted to regulate
Wall Street, not replace it. The Clintons cashed checks from Goldman
Sachs; last year Mr. Obama accepted
one from Cantor Fitzgerald.
Left populists focus on classbased perspectives. What matters to
them most is the struggle between
the 1% and the 99%, especially over
globalization. Working-class lives
matter; banks are evil. Identity politics—race, gender, sexual orientation, etc.—don’t excite left populists
much.
These were the voters who supported Bernie Sanders. Team Hillary
never understood them. “What happened” was that the history-making
potential of the first female president left almost half the party, not
only white males, unmoved.
One point of disagreement is a
question that also divides Republicans: immigration. During this
year’s budget talks, Democratic
leaders were determined to prevent
deportations of “Dreamers,” whose
parents brought them to the U.S. illegally when they were children.
TED RALL
Civil War in the Democratic Party
Populists sympathize with Dreamers, but they don’t see a hill worth
dying on. Budgetary brinkmanship
on behalf of illegal aliens risks
alienating a growing left-populist
base, whose members worry more
about their own long-suffering bank
balances.
As Mrs. Pelosi garnered liberal accolades for her eight-hour pseudo-filibuster over Dreamers—when did she
showboat over, say, distressed homeowners during the housing crisis?—
Mr. Ryan fumed that the stunt’s identity-politics-oriented optics, featuring
female congressmen standing behind
her, could alienate left populists. “If
you’re going into a budget battle like
this, you can’t go in with just a million Dreamers,” Mr. Ryan said. “You
need the retired coal miners, the retired Teamsters.”
Until a few years ago, the potential
of the populist left manifested itself
primarily in spasmodic street demonstrations such as the antiglobalization
“Battle of Seattle” in 1999 and the
ragtag Occupy encampments in 2011.
Mr. Sanders capitalized on it, transforming from a rumpled fringe candidate into the most popular politician
in America. He rocketed from around
6% in the polls among Democrats in
2015 to a 53% favorability rating
among all voters last year.
And left-populist voters were decisive in November 2016. Some 12%
of those who supported Mr. Sanders
in the primaries cast their votes for
Mr. Trump, according to political scientist Brian Schaffner. “I’m with
her,” Mrs. Clinton’s bumper stickers
proclaimed. But populists wanted a
candidate who was with them. From
her decision not to consider Mr.
Sanders for the ticket to her failure
to pick up his call for a $15 minimum
wage, from her focus on identity politics over pocketbook issues to her
campaign’s outreach to anti-Trump
Republicans in the suburbs, Bernie
voters got the Big Snub.
They snubbed back. Many Sanders supporters stayed home on Election Day. “Donald Trump probably
would have lost to Hillary Clinton
had Republican- and Democraticleaning registered voters cast ballots
at equal rates,” wrote Harry Enten of
FiveThirtyEight.
Mr. Trump owes his presidency to
the populist left. But he’s not respecting them either. He brags about
stripping away regulations and a
$1.5 trillion tax cut whose benefits
mostly go to the wealthy and big
corporations, not to mention a stock
market whose gains are leaving
many Americans behind. It all tells
Bernie America that Hillary America
was right about the Republicans and
Mr. Trump.
Fortunately for the GOP, the national Democrats are as clueless
about the populist left as they were
in 2016. The choice of Clintonite Tom
Perez to run the Democratic National
Committee broadcasts the Democrats’ determination to nominate another identitarian left-centrist standard-bearer—Kamala Harris, Cory
Booker, Kirsten Gillibrand, maybe
even Oprah Winfrey. Anyone but
Bernie!
DNC-approved “mainstream” presidential prospects have adopted leftleaning positions on a variety of issues. Yet the populist left doesn’t
trust them, and for good reason. Ms.
Harris was caught fundraising in the
Hamptons; Mr. Booker is too close to
bankers; Ms. Gillibrand may have
vested too much in #MeToo; Ms.
Winfrey is a billionaire arriviste.
They’re all silent on the working
class.
The populist left won’t flip to the
GOP again in 2020. But they won’t
turn out for another regular Democrat either. This November? They’ll
probably stay home with Netflix.
Mr. Rall is co-author, with Harmon Leon, of “Meet the Deplorables:
Infiltrating Trump America,” and author of “Francis: The People’s Pope,”
forthcoming in March.
Career Civil Servants Illegitimately Rule America
By Todd Gaziano
And Tommy Berry
A
fter Kimberly Manor lost her
husband to lung cancer, she was
inspired to make a dramatic career change. Kimberly now owns and
operates Moose Jooce in Lake, Mich.,
a “vape shop” that sells various electronic nicotine devices. These products use battery-powered coils to vaporize liquids, with differing levels of
nicotine or none at all. Thus, vapers
may inhale nicotine without the tar or
other harmful chemicals in tobacco
smoke, since there is no tobacco and
no combustion. Scientific evidence
suggests this is a much safer alternative to smoking.
Ms. Manor estimates that her business has helped more than 500 people
quit smoking, most of them longtime
smokers in their 50s or older. Yet the
Food and Drug Administration is discouraging more such enterprises. In a
regulation issued in 2016 known as the
“deeming rule,” the agency ordered
that vaping products would be subject
to the same regulations developed for
the cigarette industry under the Tobacco Control Act of 2009.
The deeming rule has been devastating to businesses like Ms. Manor’s.
To give just one example, vape shop
owners frequently experiment by
mixing new flavors for the liquid
“juice.” Now, each separate creation
requires its own prohibitively expensive application for FDA approval,
which means that vape shops have
been forced to stop innovating.
There are many reasons to criticize the FDA’s action, but its most
fundamental flaw—and the one that
our legal foundation raises in three
lawsuits on behalf of Ms. Manor and
nine others—is that the rule was finalized by someone without authority to do so. The rule was not issued
or signed by either the secretary of
health and human services or the
FDA commissioner, both Senate-confirmed officials. Instead, it was issued
and signed by Leslie Kux, a career bureaucrat at FDA.
This isn’t the first time the FDA
bureaucracy has exceeded its authority. HHS officials in prior administrations purported to delegate their
rule-making power to the bureaucrats who held the position Ms. Kux
now fills—and she has issued nearly
200 rules.
All these rules are invalid. The attempted delegation of rule-making
authority to someone not appointed
as an “Officer of the United States”
violates one of the most important
separation-of-powers clauses in the
Constitution.
The question of who signs off on
such decisions isn’t a mere formality.
Suppose a Supreme Court justice
said to one of his law clerks, “You
know how I want to rule on the cases
this term, so I authorize you to write
Leslie Kux has never been
elected or confirmed by
the Senate. She’s issued
nearly 200 regulations.
the opinions assigned to me—but issue them in your name so I am not
responsible for the final wording.”
Justices certainly do ask clerks to
help write their opinions. But given
that the precise wording of an opinion is crucially important, does anyone think the power to sign and issue them can be delegated to a law
clerk?
Political accountability matters;
that’s why the Framers included the
Appointments Clause in Article II of
the U.S. Constitution. According to
that design, certain powers can be
exercised only by principal officers
of the U.S. who were confirmed by
the Senate. Thus (with the exception
of temporary recess appointees),
only Senate-confirmed judges may
issue binding judicial opinions, and
only Senate-confirmed principal officers in the executive branch may issue regulations that are binding on
the public as a matter of law. This
constitutional requirement preserves
democratic accountability for both
judicial decisions and significant executive-branch actions.
The progressive vision has been to
insulate “impartial” bureaucrats from
supposedly political influences—
thereby undermining this core guarantee of democratic accountability.
But as a constitutional matter, it is
well-settled that career bureaucrats
can’t issue regulations. Forty-two
years ago, in Buckley v. Valeo, the Supreme Court invalidated the original
statute creating the Federal Election
Commission. The high court ruled
that the commission’s powers were
reserved to officers of the U.S., and
therefore that it must be reconfigured
so that its members would be appointed as the Constitution requires.
The rule-making power was among
the powers that the court explicitly
noted were reserved to officers.
Many agencies still issue rules the
constitutional way. Within HHS, the
Centers for Medicare and Medicaid
Services, for example, issued more
than 100 rules since 2010, and all but
12 (correcting typographical errors in
previous rules) were signed by the
secretary of health and human services. It isn’t too much to ask that
other Senate-confirmed officers take
responsibility for regulations issued
by their agencies.
All too often, however, cabinet
secretaries and agency heads have
tried to delegate responsibility to
low-ranking staff in ways that are irresponsible and unconstitutional. A
career bureaucrat shouldn’t have the
power to disrupt thousands of lives
like Kimberly’s. The lawsuits filed
Jan. 30 in Texas, Minnesota and the
District of Columbia are the first step
in making that principle a reality.
Mr. Gaziano is director of Pacific
Legal Foundation’s Center for the
Separation of Powers. Mr. Berry is an
attorney and lead strategist for PLF’s
Constitutional Rules for Rulemaking
Litigation Campaign.
The Legal Case for Striking North Korea First
By John Bolton
T
he Winter Olympics’ closing
ceremonies also concluded
North Korea’s propaganda effort to divert attention from its nuclear-weapons and ballistic-missile
programs. And although President
Trump announced more economic
sanctions against Pyongyang last
week, he also bluntly presaged
“Phase Two” of U.S. action against
the Kim regime, which “may be a
very rough thing.”
CIA Director Mike Pompeo said
in January that Pyongyang was
within “a handful of months” of being able to deliver nuclear warheads to the U.S. How long must
America wait before it acts to eliminate that threat?
Pre-emption opponents argue
that action is not justified because
Pyongyang does not constitute an
“imminent threat.” They are wrong.
The threat is imminent, and the
case against pre-emption rests on
the misinterpretation of a standard
that derives from prenuclear, preballistic-missile times. Given the
gaps in U.S. intelligence about North
Korea, we should not wait until the
very last minute. That would risk
striking after the North has deliverable nuclear weapons, a much more
dangerous situation.
In assessing the timing of preemptive attacks, the classic formu-
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lation is Daniel Webster’s test of
“necessity.” British forces in 1837
invaded U.S. territory to destroy the
steamboat Caroline, which Canadian
rebels had used to transport weapons into Ontario.
Webster asserted that Britain
failed to show that “the necessity
of self-defense was instant, overwhelming, leaving no choice of
means, and no moment of deliberation.” Pre-emption opponents would
argue that Britain should have
waited until the Caroline reached
Canada before attacking.
Would an American strike today
against North Korea’s nuclear-weapons program violate Webster’s necessity test? Clearly not. Necessity
in the nuclear and ballistic-missile
age is simply different than in the
age of steam. What was once remote is now, as a practical matter,
near; what was previously time-consuming to deliver can now arrive in
minutes; and the level of destructiveness of nuclear, chemical and biological weapons is infinitely
greater than that of the steamship
Caroline’s weapons cargo.
Timing and distance have long
been recognized as surrogate measures defining the seriousness of military threats, thereby serving as criteria to justify pre-emptive political
or military actions. In the days of
sail, maritime states were recognized
as controlling territorial waters
(above and below the surface) for
three nautical miles out to sea. In the
early 18th century, that was the farthest distance cannonballs could
reach, hence defining a state’s outer
defense perimeter. While some states
asserted broader maritime claims,
the three-mile limit was widely accepted in Europe.
Technological developments inevitably challenged maritime-state defenses. Over time, many nations extended their territorial claims, but
the U.S. adhered to the three-mile
limit until World War II. After proclaiming U.S. neutrality in 1939, in
large measure to limit the activities
of belligerent-power warships and
Does the necessity of
self-defense leave ‘no
choice of means, and no
moment of deliberation’?
submarines in our waters, President
Franklin D. Roosevelt quickly realized the three-mile limit was an invitation for aggression. German submarines were sinking ships off the
coast within sight of Boston and
New York.
In May 1941, Roosevelt told the
Pan-American Union that “if the
Axis Powers fail to gain control of
the seas, then they are certainly defeated.” He explained that our defenses had “to relate . . . to the
lightning speed of modern warfare.”
He scoffed at those waiting “until
bombs actually drop in the streets”
of U.S. cities: “Our Bunker Hill of tomorrow may be several thousand
miles from Boston.” Accordingly,
over time, Roosevelt vastly extended
America’s “waters of self defense” to
include Greenland, Iceland and even
parts of West Africa.
Similarly in 1988, President Reagan
unilaterally extended U.S. territorial
waters from three to 12 miles. Reagan’s executive order cited U.S. national security and other significant
interests in this expansion, and administration officials underlined that
a major rationale was making it
harder for Soviet spy ships to gather
information.
In short, both Roosevelt and Reagan acted unilaterally to adjust to
new realities. They did not reify
time and distance, or confuse the
concrete for the existential. They
adjusted the measures to reality,
not the reverse.
Although the Caroline criteria are
often cited in pre-emption debates,
they are merely customary international law, which is interpreted and
modified in light of changing state
practice. In contemporary times, Israel has already twice struck nuclear-weapons programs in hostile
states: destroying the Osirak reactor
outside Baghdad in 1981 and a Syrian reactor being built by North Koreans in 2007.
This is how we should think today about the threat of nuclear warheads delivered by ballistic missiles.
In 1837 Britain unleashed pre-emptive “fire and fury” against a
wooden steamboat. It is perfectly
legitimate for the United States to
respond to the current “necessity”
posed by North Korea’s nuclear
weapons by striking first.
Mr. Bolton is a senior fellow at
the American Enterprise Institute
and author of “Surrender Is Not an
Option: Defending America at the
United Nations and Abroad” (Simon
& Schuster, 2007).
.
THE WALL STREET JOURNAL.
A20 | Thursday, March 1, 2018
WORLD NEWS
Iran Grapples With a Volatile Currency
The rial is reeling,
Painful Plunge
adding risk for a
Iran's currency hit a low on some
president facing unrest exchanges in February before the
central bank intervened.
over the economy
Volatility in Iran’s currency
is disrupting trade and creating new challenges for an embattled president after antigovernment protests rocked
the country.
By Asa Fitch in Dubai
and Benoit Faucon
in London
How many Iranian rials
one U.S. dollar buys
35 thousand
Official rate
40
Free-market rate
45
50
Note: Scale inverted to
show direction of rial
Dec. 2017
Jan. ’18
ALI MOHAMMADI/BLOOMBERG NEWS
The extreme swings in the
Iranian rial have frustrated
some investors and prompted
a central-bank intervention to
ward off turmoil, as economic
concerns stir unrest and the
nuclear pact that returned Iran
to the global financial system
is in jeopardy.
The rial hit a record low of
more than 50,000 to the dollar
at some exchanges in February
before a government-orchestrated recovery brought it back
to where it was trading before
the protests, which began in
late December and were focused on rising prices and a
dearth of jobs.
The recent loss in confidence in the rial—and the
flight to safer assets such as
gold and the dollar—reflects
the pressures that helped
touch off the demonstrations.
President Hassan Rouhani,
in winning a second four-year
Feb.
Sources: xe.com (official rate); bonbast.com
(free-market rate)
THE WALL STREET JOURNAL.
term last year, promised to
tackle economic problems by
presenting a more open face to
the world and rooting out corruption. Double-digit inflation
and an unemployment rate of
about 12% have given his hardline opponents ammunition.
At stake is whether Iran
continues with policies preferred by Mr. Rouhani’s
camp—including market liberalization, scaling back subsidies and an opening of Iran to
greater trade and investment—
or revert to his opponents’ ideals of economic self-reliance
and suspicion of the West.
The central bank has moved
to restore order. It said in
Swings in the rial’s value have raised anxiety for consumers already troubled by economic concerns.
early February it would issue
foreign-currency
sovereign
bonds, aiming to sate appetite
for stabler currency alternatives to the rial without weakening it.
To drive up demand for
Iran’s currency, the bank temporarily raised bank deposit
rates on the rial to 20% after
they had been lowered to 15%
in September. Authorities also
arrested 90 unauthorized currency traders, accusing them
of catering to speculators who
undermined the rial.
With those moves, the currency has strengthened back to
pre-protest levels after a fall of
about 14%.
Volatility has long been a
feature of Iran’s business environment, as it struggled under
years of Western sanctions and
dealt with sporadic upheaval
from within. But the February
dip was especially deep, bringing more political risk for Mr.
Rouhani and his policies.
A crackdown suppressed
large-scale demonstrations in
January, but scattered labor
strikes have continued. A
movement has also gained
steam in which women remove
Islamic headscarves in public,
highlighting differences between hard-liners and Mr. Rouhani, a relative moderate who
has courted women’s support.
The potential collapse of the
nuclear deal, which Mr. Rouhani
championed,
could
heighten strains.
President Donald Trump has
indicated he could pull the U.S.
out as early as May from the
deal, an Obama-era pact between Iran and six world powers that gave Iran relief from
international sanctions in exchange for curbs on its nuclear
program. The deal allowed Iran
to reconnect to the global financial system, though with
heavy limitations.
Should the deal fall apart,
“with continued strain on all
sectors of the economy, Rouhani’s administration could
continue to lose popular support, which could create an
opening for hard-liners to intervene and assert control,”
said Garbis Iradian, an economist at the Institute of International Finance.
For investors who have
stayed in Iran, the rial’s
plunge—the latest blip in a
yearslong slide—is hard to
swallow.
There are upsides, for some.
A weaker currency can be beneficial for Iranian exporters
and for investors whose dollars or euros can buy more
rial-based assets.
But the swings breed uncertainty. “For the few firms investing in Iran now, any boon
to investment caused by the
devaluation is outweighed by
the overall issue of volatility,”
said Esfandyar Batmanghelidj,
the founder of Bourse & Bazaar, a business-analysis website focused on Iran.
—Aresu Eqbali in Tehran
contributed to this article.
BY DOV LIEBER AND RORY JONES
JERUSALEM—Christian
leaders reopened one of Jerusalem’s holiest sites after Israeli authorities suspended a
demand for churches to pay
tens of millions of dollars in
taxes, easing a standoff that
highlighted simmering tensions between Palestinian
Christians and Israelis.
The closure of the Church
of the Holy Sepulchre, be-
lieved to mark the burial site
of Jesus, had meant thousands
of Christians were unable to
visit the popular pilgrimage
site for three days. Clergymen
closed the church on Sunday
to protest city taxes and a proposed Israeli parliamentary
bill to confiscate land sold by
church authorities.
The clash underscored friction between the mainly Palestinian Christian community in
Jerusalem and Israeli authori-
ties after President Donald
Trump’s controversial decision
to recognize the city as the
capital of Israel. Palestinian
officials want the eastern part
of Jerusalem, where the
church is located, to be the
capital of a future Palestinian
state.
The Greek Orthodox, Armenian Apostolic and Roman
Catholic denominations all
share custody of the Church of
the Holy Sepulchre.
The Face
of Change
Leaders from the three denominations said they reopened the holy site Wednesday after Israeli Prime
Minister Benjamin Netanyahu
intervened to reach an agreement with Jerusalem’s city
hall to solve the tax dispute.
“Israel is proud to be the
only country in the Middle
East where Christians and believers of all faiths have full
freedom of religion and worship,” Mr. Netanyahu said.
THOMAS COEX/AGENCE FRANCE-PRESSE/GETTY IMAGES
Church of the Holy Sepulchre Is Reopened
The shrine in Jerusalem is one of the holiest sites in Christianity.
Torsten Kablitz
Cloud Technology
Seattle, WA
The chance to make healthcare work better propels Torsten forward. His deep understanding
of the ever-changing technology landscape enables him to provide future-focused solutions.
This mindset, and our agile approach, ensure that we’re able to help customers get to better – faster.
It’s just one way our people are helping to accelerate the transformation to a value-based
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changehealthcare.com
©2017 Change Healthcare Operations, LLC. All rights reserved.
.
TECHNOLOGY: CHINA’S BAIDU PLANS U.S. IPO FOR STREAMING UNIT B4
BUSINESS & FINANCE
© 2018 Dow Jones & Company. All Rights Reserved.
S&P 2713.83 g 1.11%
S&P FIN g 1.28%
* * * *
S&P IT g 0.70%
Thursday, March 1, 2018 | B1
THE WALL STREET JOURNAL.
DJ TRANS g 1.35%
WSJ $ IDX À 0.18%
LIBOR 3M 2.017
NIKKEI (Midday) 21714.97 g 1.60%
See more at WSJMarkets.com
SEC Launches Cryptocurrency Probe
Tech firms, others
involved in hot
initial coin offerings
are subpoenaed
BY JEAN EAGLESHAM
AND PAUL VIGNA
The Securities and Exchange Commission has issued
dozens of subpoenas and information requests to technology companies and advisers
involved in the red-hot market
for cryptocurrencies, according to people familiar with the
matter.
The sweeping probe significantly ratchets up the regulatory pressure on the multibillion-dollar U.S. market for
raising funds in cryptocurrencies. It follows a series of
warning shots from the top
U.S. securities regulator suggesting that many token sales,
or initial coin offerings, may
be violating securities laws.
The wave of subpoenas includes demands for information about the structure for
sales and presales of the ICOs,
which aren’t bound by the
same rigorous rules that govern public offerings, according
to the people familiar with the
matter. Companies use coin offerings to raise money for everything from file-sharing
technology to pet passports.
A spokesman for the SEC
declined to comment.
U.S. regulators have repeat-
edly put cryptocurrency firms
and their advisers on notice in
recent months about what officials say are widespread violations of securities rules designed to protect investors.
“Many promoters of ICOs
and cryptocurrencies are not
complying with our securities
laws,” SEC Chairman Jay Clayton said earlier this year. In
another speech, he said he has
instructed his staff to be “on
high alert for approaches to
ICOs that may be contrary to
the spirit” of those laws.
Such warnings have failed to
chill the booming market for
digital tokens. Coin offerings
have already raised about $1.66
billion this year and are on
pace to top last year’s $6.5 billion tally, according to research and data firm Token Report.
“We’re seeing the tip of the
iceberg…there is going to be a
ton of enforcement activity,”
said Dan Gallagher, an SEC
commissioner from 2011 to
2015 who now sits on the
board of blockchain company
Symbiont. Mr. Gallagher told
an SEC conference in Washington last week that the largely
unregulated token offerings are
“the freaking Wild West—it is
‘Wolf of Wall Street’ on steroids.”
Many of the coin offerings
happen outside the regulatory
framework designed to protect
investors. Hype around last
year’s bitcoin bubble led to
Please see ICO page B2
Stocks Snap Winning
Streak in February
Older Phones, Spiffed Up,
Get Their Mojo Back
Index performance in February
2%
0
S&P 500 technology
S&P 500
S&P 500 energy
–2
–4
–6
–8
–10
–12
February
Source: FactSet
THE WALL STREET JOURNAL.
ANDREW KRECH/NEWS & RECORD/ASSOCIATED PRESS
Rate worries take toll. B12
Foreign
Investors
Eschew
U.S. Debt
BY JON SINDREU
Refurbished phones represent the fastest-growing segment of the global smartphone industry as shoppers balk at price tags for new models that approach $1,000.
The smartphone industry
has a culprit to blame for
slumping sales: Its old devices
remain too popular.
Flashy phones of yesteryear, particularly Apple Inc.’s
iPhones and Samsung Electronics Co.’s Galaxy S handsets, are getting refurbished,
and U.S. consumers are snapping them up.
Many shoppers are balking
at price tags for new phones
pushing $1,000, and improvements on latest launches in
many cases haven’t impressed.
As more people hold on to
devices longer, new smartphone shipments registered a
historic decline at the end of
2017.
“Smartphones now resemble the car industry very
closely,” said Sean Cleland, director of mobile at B-Stock
Solutions Inc., the world’s
largest platform for trade-in
and overstock phones, based
in Redwood City, Calif. “I still
want to drive a Mercedes, but
I’ll wait a couple of years to
buy the older model. Same
mentality.”
INSIDE
Another trend borrowed
from the car industry that has
helped consumers get around
sticker shock: leasing. Instead
of buying new phones, Sprint
Corp. and T-Mobile US Inc. allow subscribers to effectively
lease them, enabling them to
trade up for the latest device.
That option, though, hasn’t yet
gone mainstream.
Refurbished phones represent the fastest-growing segment of the global smartphone
industry, accounting for nearly
one out of every 10 devices
sold, according to Counterpoint Technology Market Re-
BOARDROOM
ACTIVISTS GRAB
PURSE STRINGS
CHICAGO LOOKS
TO ETHICAL
INVESTING
MANAGEMENT, B5
FINANCE, B10
More Firings at BofA
Amid Misconduct Claim
Bank of America Corp.
fired two employees in its
hedge-fund-focused primebrokerage unit as it expands
an investigation into potential
sexual misconduct in the division, people familiar with the
matter said.
The bank fired the employees after determining they interfered with the probe of alleged inappropriate behavior
by Omeed Malik, until recently
one of the top executives in
the unit, the people said. The
markets. But now, U.S. buyers
represent 93% of the purchases made at secondhandphone online auctions run by
B-Stock, compared with an
about-even split between the
U.S. and the rest of the world
in 2013.
Samsung and Apple together sell more than one out
of every three phones globally
and capture about 95% of the
industry’s profits.
U.S. consumers, spurred by
two-year carrier contracts and
phone subsidies, were upgrading every 23 months as rePlease see PHONES page B4
Spotify IPO Moves Forward
BY MAUREEN FARRELL
AND ANNE STEELE
BY ROB COPELAND
AND RACHEL LOUISE ENSIGN
search, which tracks device
sales. Overall smartphone
shipments hit 1.6 billion last
year, Counterpoint said.
The older phones, which
can sell for several hundred
dollars, sap some of the demand for brand-new devices,
which deliver the biggest profits. A premium handset today
is likely to have three, if not
four, different owners before it
eventually gets tossed, according to industry executives and
resellers.
Secondhand phones long
ago found their way to Africa,
India and other developing
fired employees, Valerie Ludorf and Joe Voboril, were
earlier placed on leave, they
said.
Mr. Malik was fired in January in the wake of complaints
from female employees about
unwanted advances, The Wall
Street Journal earlier reported.
The bank said in a recent
Financial Industry Regulatory
Authority filing that Mr. Malik
was “discharged [for] personal
conduct in violation of firm
standards, including interfering with the firm’s review of
Please see BOFA page B2
Music-streaming company
Spotify Technology SA cemented plans for its unusual
initial public offering while revealing the financial particulars of a fast-growing company that upended the music
industry and revolutionized
how consumers listen—but
spent heavily to do so.
Stockholm-based Spotify
filed to go public Wednesday
by submitting an F-1 to the Securities and Exchange Commission that contains years of
data and details about how the
10-year-old company will
launch its IPO.
The filing showed that the
company’s revenue is growing
sharply but its losses are ballooning. It posted €4.1 billion
($5.02 billion) of revenue in
2017, up nearly 39% from the
prior year. The company,
which has yet to turn a profit,
posted a loss of €1.24 billion
in 2017, wider than losses of
€539 million in the prior year
and €230 million in 2015.
A large portion of the company’s 2016 and 2017 losses
stemmed from expenses related to $1 billion in convertible debt it raised in 2016,
which has been converted into
Spotify’s debut will
be one of the biggest
technology listings
seen in recent years.
equity ahead of the listing.
Spotify’s debut will be one
of the biggest technology listings in recent years. Based on
private transactions in February, Spotify’s value touched
$22.6 billion.
A standard IPO timeline in-
DADO RUVIC/REUTERS
BY TIMOTHY W. MARTIN
AND DREW FITZGERALD
dicates Spotify’s shares could
begin trading on the New York
Stock Exchange under the
ticker symbol “SPOT” as soon
as the week of March 26.
Unlike a traditional IPO, no
new shares will be offered
when Spotify goes public. Instead, through a process
known as a direct listing, Spotify will simply float its existing shares and let the market
find a price without banks
serving as underwriters to set
pricing, allocate shares to investors and backstop trading,
as is typical in a regular listing. There is little precedent
for the kind of direct listing
Spotify is attempting.
Despite large net losses, the
pressure on Spotify to raise
new money during the listing is
reduced because of the company’s positive free cash flow.
The difference between cash
flow and losses is due partly to
upfront payments for subscription plans that are deposited in
the company’s bank account but
not immediately reflected on its
profit-and-loss statement.
Spotify’s listing will likely
be coveted by investors who
are seeking high growth that
often comes with big-name,
highly valued technology IPOs,
which have been rare of late.
Most of the startups with the
highest valuations—including
ride-hailing service Uber
Please see SPOTIFY page B10
Heard on the Street: Spotify
needs to change tune......... B12
The rise in Treasury yields
should make U.S. debt more
attractive to international investors still struggling with
low returns at home, yet few
are buying.
The rising costs of currency
hedges means it often isn’t
worth it.
Yields on 10-year U.S. government bonds have jumped
to 2.9% from 2.1% a year ago,
near levels last seen in early
2014. In Europe, a 10-year German
government
bond
yields 0.66%, while in Japan
the same maturity returns 0.05%. Yields move inversely to prices.
Last year, buying Treasurys
and swapping the proceeds
back into euros provided European investors with a higher
return than buying German
sovereign bonds. Now, hedging
costs have increased so much
that this trade is no longer
profitable.
That could sap an important source of demand for
Treasurys. It is also making it
more expensive for foreign investors to buy U.S. corporate
debt.
“We’ve been very wary
about what optically appears
like a very wide difference [in
yields] between Europe and
the U.S., because of funding
and hedging costs,” said Charlie Diebel, a London-based
fund manager at Aviva Investors, who is now looking to
buy in other bond markets like
Canada.
The European Central Bank
estimates that since 2015, eurozone investors have accounted for more than half of
foreign purchases of U.S. debt
securities.
But in 2017, eurozone investors were consistent net sellers of Treasurys, according to
official U.S. data.
International investors usually hedge their holdings of
foreign bonds using derivatives, which allow them to
borrow a foreign currency in
exchange for their own, and
lock in a future rate at which
they will reverse the transaction.
On the surface, there is still
a case for buying Treasurys
and hedging the currency risk.
Buying a 10-year Treasury and
buying a hedge in euros for
Please see DEBT page B2
.
B2 | Thursday, March 1, 2018
INDEX TO BUSINESSES
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.
Airbnb........................B10
Alibaba Group.............B4
Alphabet....................B10
Amazon.com......B10,B12
American Airlines Group
.....................................B3
American International
Group.........................B6
Anbang Insurance Group
.....................................B6
Apple.............B1,B10,B12
AriseBank....................B2
AT&T............................B4
B
Baidu ........................... B4
Bank of America.........B1
Bank of New York
Mellon.......................B5
Bank of TokyoMitsubishi UFJ........B10
BASF............................B3
Bayer...........................B3
Best Buy ..................... B3
Bluescape Energy
Partners....................B5
B-Stock Solutions.......B1
C-D
Chefs' Warehouse ...... B5
Cleary Gottlieb Steen &
Hamilton...................B5
Comcast.....................B12
Commerzbank ............. B2
Dalian Wanda Group .. B6
Delivery Hero............B12
Deloitte & Touche.....B10
D.E. Shaw....................B5
Deutsche Bank............A4
E-F
Elliott Management ... B5
Frontier
Communications.......B4
G
General Electric .......... B5
General Motors...........B3
Goldman Sachs Group
........................... A10,B10
GrubHub....................B12
H
HDFC Bank................B11
Herbalife.....................A1
HNA Group..................B6
I
ICICI Bank ................. B11
iQiyi.............................B4
J
Jana Partners ............. B5
Just Eat.....................B12
K
K2 & Associates
Investment
Management.............B5
Kushner.......................A4
L-M
Legion Partners .......... B5
Lockheed ..................... B3
Lowe's..................B5,B12
McDonald's..................B6
Mitel Networks...........B5
Monsanto....................B3
Morgan Stanley........B10
N
National Football
League.......................B2
New Castle Hotels &
Resorts......................B6
NRG Energy.................B5
P
Pandora Media..........B10
Papa John's
International.............B2
Pearson ....................... B6
Perry Ellis International
.....................................B5
Pershing Square Capital
Management.......A1,B3
A
Gazal, Remon..............B4
Goh, Khoon................B11
B
H
Batchelder, David ....... B5
Bechtel, Brad ............ B11
Homer, Jim..................B6
Hooper, Kristina........B12
Hornby, Lisa..............B11
C
Catalini, Christian.......B2
Clayton, Jay ................ B1
Cleland, Sean..............B1
Cohen, Robert.............B2
Cook, Tim....................B4
Coyne, Michael W.......A2
D
Diebel, Charlie.............B1
E
Earl, Alan .................... B4
Ek, Daniel..................B10
F-G
Farkas, Lee................B10
Garden, Ed...................B5
I
Icahn, Carl.................A10
Iger, Bob....................B12
Iggo, Chris...................B2
J
Joos, Don .................... B5
K
Klingsberg, Ethan.......B5
Koh, D.J.......................B4
Kuroda, Haruhiko......B10
R-S
Red Roof Inns.............B6
Samsung Electronics
............................. A10,B1
ShoreTel ...................... B5
Signature Bank...........A4
Sky.............................B12
Snap...........................B10
Sony...........................B10
Spotify.................B1,B12
Spotlight Advisors......B5
Sprint.....................B1,B4
Starbucks....................B6
Symbiont.io.................B1
T
Takeaway.com...........B12
Taylor Bean & Whitaker
Mortgage ................ B10
Telegram......................B2
Tencent Holdings........B4
Tiffany.........................B5
T-Mobile US...........B1,B4
Toyota Motor............A10
Trian Fund Management
.....................................B5
21st Century Fox......B12
U-V
Uber Technologies ...... B1
United Continental
Holdings....................B3
United Technologies...B3
Verizon Communications
.....................................B4
W-Y
Walmart......................B6
Walt Disney..............B12
Wyndham Hotels and
Resorts......................B6
Yum Brands.........B2,B12
P
Park, Damien .............. B5
Prakken, Joel .............. A2
S
Sekido, Takahiro ....... B10
Staunovo, Giovanni .. B11
Summers, Kurt ......... B10
T
Tomas, Jose................B3
V
Voboril, Joe.................B1
W
White, Ted .................. B5
Wilder, Charles John..B5
Wu, Xiaohui................B6
Omeed Malik
was fired in
January in the
wake of
complaints
from female
employees.
not credible, and the bank
chose to ignore and suppress
that evidence, moving instead
to destroy Mr. Malik’s career.”
The attorney added, “The
bank’s actions against Mr. Malik, who is of Middle Eastern
descent, were part of a pattern
of discrimination in which
white males at the bank have
been protected and rewarded.”
An attorney for Mr. Voboril
said her client cooperated fully
with the bank’s investigation
and didn’t interfere. “The firm
never alleged that Joe committed any misconduct” before it
terminated him, said the attorney, Kim Michael. “We believe
this is part of Bank of America’s attempt to discredit anyone whose truthful answers
didn’t fit into their narrative.”
Ms. Ludorf didn’t respond
to requests for comment.
A Bank of America spokesman said the employees no
longer worked at the bank.
The firings represent a new
phase of Bank of America’s
probe into its prime-brokerage
business. This unit encompasses employees world-wide
who pitch hedge funds and
other institutional clients to
pay the bank for trade execution and other services.
In recent years, the division
has been home to allegations
of misconduct, according to
Pizza Hut will be the next official pizza sponsor of the National
Football League after a fallingout between the league and Papa
John’s.
The NFL said Wednesday that
the new agreement is for multiple years and “will first unfold”
during the player draft this spring.
As part of the sponsorship, Pizza
Hut can use NFL tickets and
“unique fan experiences” for
games in its marketing, the
league said.
The league and Papa John’s
International Inc. announced their
mutual decision to part ways on
Tuesday. The pizza chain, which
had been an NFL partner since
2010, said it would continue partnerships with 22 NFL teams and
its relationships with league players and personalities.
John Schnatter, founder and
DEBT
Over the Hedge
former chief executive of Papa
John’s, had expressed frustration
during the past football season
that the national-anthem-protest
issue was left to fester and accused the NFL of “poor leadership.” Mr. Schnatter stepped
down as chief executive in December but remained chairman.
Pizza Hut, which is part of
Yum Brands Inc., has over 7,200
restaurants in the U.S. Papa
John’s has more than 3,400 locations in Canada and the U.S.
Pizza Hut, based in Plano,
Texas, didn’t disclose how much it
will spend in connection with the
NFL partnership and didn’t respond to a request for comment.
“Pizza Hut has the creativity
we are looking for in a partner,”
NFL Commissioner Roger Goodell
said in prepared remarks.
—Allison Prang
M
Malik, Omeed..............B1
Monier, Stéphane.....B12
L
Continued from the prior page
the matter.”
Bank officials believe Mr.
Malik and others sought to
throw off the investigation by
trying to coordinate the stories employees told internal
investigators about his behavior, according to the people.
This conduct allegedly included a history of pursuing
relationships with subordinates, the people said.
Marc Kasowitz, an attorney
for Mr. Malik, said “Mr. Malik
has not engaged in any sexual
harassment and has not interfered with Bank of America’s
review of the matter. Any allegation that he did so is false.
The bank was presented with
compelling evidence from multiple employees that the accusations against Mr. Malik were
Running back DeAngelo Williams, left, in a Pizza Hut video shoot ahead of last year’s Super Bowl.
Lurie, Glenn.................B4
Li, Robin......................B4
Lorentzon, Martin.....B10
Ludorf, Valerie............B1
BOFA
NFL Drafts Pizza Hut as Sponsor to Replace Papa John’s
Ping An Insurance
(Group) of China ...... B6
PricewaterhouseCoopers
.....................................B5
Procter & Gamble.......B5
INDEX TO PEOPLE
Ackman, William...A1,B3
BUSINESS & FINANCE
MARTHA RIAL/ASSOCIATED PRESS FOR PIZZA HUT
A
THE WALL STREET JOURNAL.
* ***
current and former employees.
These people said some in
the unit were uncomfortable
when they heard a male executive—who remains with the
bank—had told fellow employees that he attended the filming of a pornography video
during a business trip to California. He visited the shoot in
his spare time, in the backyard
of a friend’s house, one of the
people said.
When the executive returned, he showed pictures
from the shoot to some colleagues in prime brokerage, including some of the top executives in the unit, current and
former employees said.
Mr. Malik, a former lawyer
at Weil, Gotshal & Manges LLP,
was hired in 2012 to help generate business for the unit.
Bank of America within about
two years began receiving
complaints about him, current
and former employees said.
In one instance, a female
prime-brokerage employee notified human resources that
Mr. Malik had attempted to
start a romantic relationship
with her, which she rebuffed,
people familiar with the matter said. In the complaint, she
said she believed that interaction negatively affected her
career, the people said.
She subsequently left the
bank, people familiar with the
matter said. It isn’t clear
whether Bank of America
acted on her complaint. The
bank declined to comment on
the matter.
Mr. Kasowitz, Mr. Malik’s
lawyer, said, “Mr. Malik wasn’t
in any position to affect this
employee’s career, advancement, compensation or day to
day responsibilities.”
Mr. Malik in recent years
was promoted several times,
most recently to global head
of capital strategy, a position
that involved staff around the
world reporting to him.
He continued to pursue a
series of relationships with
subordinates through last
year, current and former Bank
of America employees said.
The bank’s personnel policy
states that personal relationships among employees in
which one has influence over
another can lead to “real or
perceived conflicts of interest”
and “should be avoided when
possible.”
At the end of 2017, one of
Mr. Malik’s subordinates filed
a complaint with human resources about an unwanted
advance, the Journal earlier
reported. On Jan. 9, Mr. Malik
was fired by the bank, according to the Finra record.
Continued from the prior page
that same maturity will still
earn an investor a small
pickup of about 0.1 percentage
point over what they would
get buying a German government bond. A year ago, the reward was similar.
But the problem for the
Treasury market is that few
big investors hedge it for anywhere near that time, analysts
say.
“Most investors prefer to
roll over three-month currency
hedges because it’s a more liquid market,” said Chris Iggo,
chief fixed-income investment
officer at AXA Investment
Managers.
Holding long-term Treasurys and hedging the currency
risk for three months means
taking a hit every time the Federal Reserve nudges up shortterm borrowing costs, which it
has done three times over the
past year. On Tuesday, Fed
Chairman Jerome Powell indicated that the central bank is
on track to keep gradually lifting interest rates and perhaps
even pick up the pace this year.
The greenback has also just
become harder to source for
investors using currency derivatives, as rules designed to
make finance safer have made
banks more reluctant to lend
dollars in the short term. Adding to this, the Fed is now
sucking dollars out of the financial system as it rolls back
its monetary stimulus, making
ICO
Continued from the prior page
many cryptocurrency offerings
for startup projects. Some of
them had little, if any, basis in
proven technologies or products, and many were being run
outside the U.S. In some cases,
investors caught up in schemes
that turn out to be fraudulent
may have little hope of recovering their money.
A soon-to-be published MIT
study of the ICO market estimates that $270 million to
$317 million of the money
raised by coin offerings has
“likely gone to fraud or
scams,” said Christian Catalini,
an MIT professor.
The SEC has so far brought
only a handful of cases alleging cryptocurrency frauds, as
officials have raced to keep
pace with token sales in the
past 18 months. In January, for
instance, the SEC halted the
coin offering of Dallas-based
AriseBank, accusing the company and its executives of conducting a scam and misleading
investors with claims it was
buying a federally insured
bank. The group claimed to
have raised $600 million.
A lawyer representing
AriseBank didn’t immediately
respond to a request for comment.
Robert Cohen, head of the
SEC’s cyberenforcement unit,
last week said at least a dozen
companies have put their offerings on hold after the
agency raised questions.
Many of the cryptocur-
How much extra return above their own countries' government bonds
foreign investors get when they buy a 10-year Treasury and hedge the
currency risk
Now
Europe
3-month hedges
A year ago
full hedge
Japan
3-month hedges
full hedge
–0.6 pct. point –0.4
–0.2
0
0.2
0.4
0.6
Three-month euro-dollar cross-currency basis, in which negative
numbers mean costlier U.S. dollar borrowing using euros
0.2 percentage point
0
–0.2
–0.4
–0.6
–0.8
2012 ’13
’14
Source: Thomson Reuters
the currency even scarcer.
A year ago, investors were
getting about 0.5 percentage
point extra for buying a 10year Treasury and hedging the
currency risk every three
months, instead of purchasing
a German government bond,
according to The Wall Street
Journal’s calculations. They
are now losing 0.5 percentage point, a multiyear low.
rency-related subpoenas were
issued in recent weeks, likely
paving the way for what lawyers and industry insiders expect to be a dramatic upturn
in enforcement activity.
The SEC scrutiny is focused
in part on “simple agreements
for future tokens,” or SAFTs,
which are used in some of the
most prominent crypto-fundraisings, according to the people familiar with the matter.
The agreements allow big
investors and relatively welloff individuals to buy rights to
tokens ahead of their sale. The
rights can be traded, or flipped
for profits, even before the
sale begins.
The SEC is concerned that
such agreements are potentially being used to trade like
securities without conforming
to the strict rules that apply to
securities.
Telegram, a popular messaging app, used such agreements earlier this year to raise
an astounding $850 million
from 81 investors, according to
an SEC filing by the company.
It isn’t clear if the SEC has issued any information requests
or subpoenas related to the
Telegram fundraising.
A Telegram representative
didn’t immediately respond to
a request for comment.
The Cardozo Law School in
New York issued a report last
year saying simple agreements
for future tokens could increase the risk that certain
coin offerings violate securities laws, as well as potentially
damaging smaller investors.
—Dave Michaels
contributed to this article.
’15
’16
’17
THE WALL STREET JOURNAL.
Yields on long-term bonds
like the 10-year Treasury will
have to go up much more if
they are to attract fresh overseas buyers, Mr. Iggo said. On
Wednesday, the yield on the
10-year Treasury note settled
at 2.870%.
Typically, government debt
trades in line with where investors believe central banks
will set interest rates in the
future. Investors currently
think borrowing costs will
be increased to cool burgeoning inflation pressures, with
Mr. Powell cementing that belief on Tuesday.
But Fed data suggests that
rate expectations account for
only one-third of the selloff in
10-year Treasurys this year.
The rest of the selling has
been influenced by a rise in
that bond’s “term premium,”
the extra compensation investors get for holding longerterm debt, which is more sensitive to a fall in demand.
The rising cost of currency
hedges also is affecting U.S. corporate
bonds,
investors
say, making them less attractive
compared with their euro-denominated counterparts. Over
the past month, yields on corporate debt have risen further
in the U.S. than Europe, according to indexes complied by Bank
of America Merrill Lynch.
Japanese investors can still
get a 0.3-percentage-point
pickup over their own debt by
buying Treasurys with threemonth currency hedges.
But Commerzbank AG analysts noted that they will find
much better opportunities in
Europe, where they now get an
extra 0.8 percentage point to
hold German sovereign bonds
and swap the proceeds back
into yen every three months.
Since 2014, Japanese asset
managers have been steadily
reducing their holdings of U.S.
debt, data from Japan’s Investment Trusts Association show,
and that trend continued into
last year.
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THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | B3
* * * *
BUSINESS NEWS
BY DOUG CAMERON
CHRISTOPHER DILTS/BLOOMBERG NEWS
American Airlines Group
Inc. rejected aspects of plans to
expand Chicago’s O’Hare International Airport that the carrier
said would favor rival United
Continental Holdings Inc.
Chicago Mayor Rahm Emanuel on Wednesday said O’Hare,
the nation’s third-largest hub
by passenger traffic, would receive $8.5 billion in renovations
including a new terminal and a
25% increase in the number of
gates from 184 at present.
While most carriers that operate at O’Hare support a plan
that has been under discussion
for 18 months, American cried
foul at a provision the airline
said was inserted in February
to provide gates to United, the
airport’s largest tenant.
Chicago-based United defended its deal to add five gates
as part of the overall expansion,
which it said was more than
matched by additional space
granted American under an existing renovation.
”American Airlines has been
aware of our agreement for
over a year and has worked to
block the implementation at every opportunity,” United said in
a statement.
A 35-year lease deal governing space allocated to airlines
at O’Hare expires in May. Both
American and United are ex-
panding their operations at
O’Hare by adding flights to
midsize U.S. cities, a move that
would also draw more traffic
onto their international flights.
American recently secured
eight more gates at O’Hare as
part of existing renovation
work. The Fort Worth, Texasbased carrier, which hasn’t
been allocated gates under the
expansion plan, said adding to
United’s tally would give the
airline an unfair advantage.
American said it was open to
a compromise. The world’s largest airline by revenue said it
had asked the city to accelerate
the construction of three more
gates that aren’t part of the
major overhaul of the airport,
and give them to American.
City officials said they intend
to proceed with plans for
O’Hare despite American’s concerns.
“This is about positioning
Chicago to compete with Beijing, Paris and Abu Dhabi, not
about positioning in the decades-old competition between
two airlines,” said Adam Collins, Mayor Emanuel’s spokesman.
United, Delta Air Lines Inc.,
Alaska Air Group Inc. and Spirit
Airlines Inc. all said Wednesday
that they support the city’s
plan.
—Shibani Mahtani
contributed to this article.
American Airlines claims the plan gives United an unfair advantage.
Bayer Gives Deal a Nudge
Company readies more
asset sales to win
regulatory approval
of Monsanto takeover
BY ZEKE TURNER
AND NATALIA DROZDIAK
German chemical giant
Bayer AG is preparing to sell
more assets to win antitrust
approval for its $60 billionplus takeover of Monsanto
Co., as it aims to complete the
deal by midyear.
“We have now also committed to divest our entire vegetable-seed business,” Chief Executive Werner Baumann said
Wednesday in an earnings
conference call, adding that
other businesses may be sold
or licensed.
In October, Bayer agreed to
sell parts of its crop-science
business to rival BASF SE for
$7 billion in order to smooth
the way for its purchase of St.
Louis-based Monsanto.
Mr. Baumann declined to
comment on the value of the
assets Bayer is considering
selling and what share of company revenue they could represent.
Those assets could also be
sold to BASF, according to
people familiar with the matter. In addition, Bayer has
agreed to grant BASF a license
for its digital-farming data,
the people said.
The review of the Monsanto
deal by the European Commission, the bloc’s antitrust regulator, appears headed toward
conditional approval, people
familiar with the matter say.
The commission, which has
flagged concern the deal could
pressure farmers, is expected
to decide by April 5.
The deal for the U.S. seed
maker, if completed, would
create a sector powerhouse
and tilt Bayer heavily toward
agriculture in a long-term bet
on high-tech crops.
Bayer has faced delays in
winning approval for the deal
in the U.S. and Europe partly
because of negotiations over
SHANNON VANRAES/REUTERS
One Carrier Dissents
On O’Hare Expansion
The deal has faced regulatory delays in the U.S. and Europe. A Monsanto research facility in Canada.
asset sales and the large
amount of documents regulators have to process. The U.S.
Department of Justice’s antitrust review continues.
Mr. Baumann expressed optimism that the deal, which
has already passed muster
with Brazilian regulators and
the Committee on Foreign Investment in the U.S., will go
through.
Bayer, which had hoped to
close the deal early this year,
is now aiming for completion
in the second quarter. The deal
was struck in September 2016
amid a wave of consolidation
in the industry.
Bayer said the enterprise
value of the Monsanto takeover has now fallen to $62.5
billion, from $66 billion, after
the U.S. company paid down
some of its debts.
The update on the deal
came as Bayer released fourthquarter earnings and an out-
look that were below expectations. Its shares fell 1.9% to
€96.23 ($117.34) on Wednesday.
The company said net
profit fell 67% in 2017’s final
quarter to €148 million ($181
million), from €453 million a
year earlier, and below a consensus analyst forecast of
€745 million.
The earnings decline reflected a €455 million charge
related to U.S. tax reform and
persistent problems with its
crop-science business in Brazil, a key agricultural market
that has been in a recession.
All of Bayer’s business units
reported lower quarterly sales
and all but pharmaceuticals
posted lower operating profit.
Full-year net profit rose
nearly 62% to €7.34 billion,
partly reflecting the sale of
part of the company’s stake in
plastics maker Covestro AG.
While Bayer executives
Ackman Raises His Sights
BY DAVID BENOIT
AND THOMAS GRYTA
William Ackman’s Pershing
Square Capital Management
LP has taken a stake in United
Technologies Corp., in another case of an activist latching onto a conglomerate that
is rethinking its structure.
Pershing Square joins other
agitators in the industrial sector, including Trian Fund Management LP in General Electric
Co. and Third Point LLC in
Honeywell International Inc.
Mr. Ackman, one of the
best-known activist investors,
hasn’t decided on whether to
be active in the investment,
but considers United Technologies to be a well-run company, according to a person
close to the matter. The size
and timing of the investment
weren’t immediately known.
Analysts and investors have
long speculated whether an
activist was involved with
United Technologies, a company that could be a prime
target because of its distinct
brands grouped under one corporate umbrella.
The Farmington, Conn.based company owns one of
the world’s biggest jet-engine
makers, Pratt & Whitney,
along with Otis elevators and
Carrier air conditioners.
Upon agreeing to buy Rockwell Collins Inc. for $23 billion
in September, United Technologies was open to reviewing a
corporate breakup in the coming years after paring its debt
and squeezing out cost savings, according to people familiar with the matter.
Last week, United Technolo-
United Technologies’
shares have risen
nearly 20% in
the past 12 months.
gies Chief Executive Greg
Hayes referred to the idea and
said that changes in U.S. tax
law make such a breakup possible sooner than previously
envisioned. Mr. Hayes said a
decision was likely by yearend.
“The question that we all
have to ask is, ‘Is UTC a more
valuable property together?’ ”
Mr. Hayes said at an investor
conference last week. “That’s a
question we continue to
study.”
Mr. Hayes also highlighted
the higher cost of being separate companies while United
Technologies already has low
costs compared with rivals.
“I like to think none of the
businesses today are capitalconstrained because they’re
part of UTC,” he said. Rival GE
is currently struggling and
considering its own breakup as
lagging cash flow and mistimed spending have forced it
to slash its dividend and financial targets.
Pershing Square is facing
its own challenges after losing
$4 billion on a bet on drugmaker Valeant Pharmaceuticals International Inc. The
fund hasn’t made money in
any of the last three years, and
even after stabilizing losses
last year the fund remains well
below its highs, putting pressure on Mr. Ackman to find big
stock winners in 2018.
The news of the United
Technologies investment was
earlier reported by CNBC.
The conglomerate’s shares,
which rose 83 cents to $134.74
on Wednesday, are up nearly
20% over the past 12 months,
outperforming the S&P 500.
BUSINESS WATCH
BEST BUY
GENERAL MOTORS
LOCKHEED MARTIN
Retailer to Close
Mobile-Phone Stores
HR Chief Departs
After Short Tenure
Pentagon Pushes
To Lower F-35 Costs
Best Buy Co. said Wednesday it will close all of its 250
mobile-phone stores in the U.S.
by the end of May, the latest retail chain to shrink its footprint
as shopping habits shift and the
smartphone market matures.
The Richfield, Minn.,-based retailer said the cellphone business
is no longer as lucrative as it
was when the company began
opening the small shops in malls
across the country.
The shops, which are only a
fraction of the size of a typical
Best Buy location, are now more
expensive to operate than a bigbox store, it said.
The company declined to say
how many jobs would be affected by the closings.
—Khadeeja Safdar
General Motors Co.’s humanresources chief has left the
company after just eight
months, the auto maker said
Wednesday, an unexpected
move coming as the Detroit
auto company continues to seek
talent to help reinvent its culture and battle Silicon Valley in
an escalating tech race.
Jose Tomas, who joined GM
in July 2017 after stints leading
HR at health-benefits company
Anthem Inc. and Burger King,
“has elected to leave the company for personal reasons,” a
GM spokesman said.
In an email, Mr. Tomas called
his time at GM “fulfilling” and
said he plans to launch a new
business venture.
—Mike Colias
The Pentagon is pushing to
make the F-35 combat jet
cheaper and will take over some
repair work to prevent the world’s
most expensive military program
from becoming unaffordable.
Lockheed Martin Corp.’s effort to reduce the plane’s cost
has worked, but the military
head of the program warned
spending on the F-35 could still
surpass the Pentagon’s budget
for the program by 2021.
“The price is coming down, but
it’s not coming down fast enough,”
Vice Adm. Mat Winter said.
The average cost of the
F-35A model used by the U.S.
Air Force dropped to $94.6 million in the last contract, a 7% decline from the previous deal.
—Doug Cameron
hope to get a boost from the
Monsanto deal, the company
on Wednesday said it expects
sales and earnings this year to
be flat with 2017. The forecast
includes expected supply interruptions because of plant
maintenance.
Adjusting for currency effects and changes to its portfolio, including the takeover,
Bayer said it expects sales to
log low- to midsingle-digit
percentage growth.
The company said it remains in good financial shape
for the Monsanto takeover.
It has reduced its net debt
by nearly 70% over the past
year to €3.6 billion, largely because of the sale of most of its
stake in Covestro. Bayer continues to own 14.2% of the
company, which it separated
from in 2015, and Its pension
trust holds an additional 8.9%.
—Nathan Allen
contributed to this article.
BOUYGUES
FULL-YEAR
2017 RESULTS
SHARP INCREASE
IN RESULTS AND
PROFITABILITY
Bouygues is very well positioned in
high-growth potential activities.
Martin Bouygues, Chairman and CEO
2017 was marked by a sharp increase in Group results
and profitability.
All the business segments contributed to this performance
by meeting or exceeding their targets. The current
operating margin of the construction businesses rose by
0.2 points and at TF1 by 2.4 points. Bouygues Telecom
posted an excellent commercial and financial performance.
Its EBITDA margin was 27.2%, growing strongly by
4.6 points versus 2016 and significantly outperforming the
target of 25% set at end-2015.
The Group strengthened its positions on its markets.
The construction businesses improved their commercial
performance both in France and on international markets.
TF1 developed its production activity at the European
level and accelerated its growth in digital media, in
particular with the ongoing acquisition of aufeminin.
Bouygues Telecom increased market share in fixed and
ramped up the roll-out of its FTTH network and marketing
of its fiber offers. Net debt at end-December 2017 was
stable year-on-year at €1.9 billion. With a very robust
financial structure, the Group has all the means to ensure
its development.
As a result of these good results, Bouygues is able to offer
its shareholders a dividend increase of €0.10 per share for
2017 to €1.70 a.
The Group expects to gradually improve its
profitability in 2018.
Bouygues is very well positioned in high-growth potential
activities, which ensures it a promising outlook. The
current operating margin of the construction businesses is
expected to improve versus 2017, and the same applies at
TF1 (excluding major sporting events). Bouygues Telecom
is experiencing profitable growth momentum. Its EBITDA
margin in 2018 is expected to be higher than in 2017,
enabling Bouygues Telecom to meet its free cash flowb
target of €300 million for 2019.
(a) To be proposed at the AGM on April 26, 2018
(b) Free cash flow = cash flow – cost of net debt – income tax expense –
net capital expenditure. It is calculated before changes in working capital
requirements
CONSOLIDATED
KEY FIGURES
SALES
€m
32,904 +4%
a
CURRENT
OPERATING PROFIT
€m
1,420 +27%
NET PROFIT
ATTRIBUTABLE
TO THE GROUP
€m
1,085 +48%
NET DEBT b
€m
(1,914) -€48m
DIVIDEND PER SHARE
€
1.70
+€0.10
(a) Up 4% like-for-like and at constant
exchange rates
(b) At December 31, 2017
(c) To be proposed at the AGM on
April 26, 2018
Consult the full press release and results presentation on bouygues.com
Investor Relations: investors@bouygues.com
@GroupeBouygues
Photo credits: Augustin Détienne/Capa Pictures. Architect: RPBW
c
.
B4 | Thursday, March 1, 2018
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Baidu Video Unit Pursues IPO
Carriers’
5G Plans
Differ in
Early Going
BY ALYSSA ABKOWITZ
BY DREW FITZGERALD
BEIJING—The iQiyi Inc.
video-streaming
unit
of
search-engine company Baidu
Inc. filed for an initial public
offering of stock in the U.S.,
promoting its ability to use artificial intelligence and user
data to deliver videos that
generate billions of views.
In a U.S. regulatory filing,
Baidu said it would list iQiyi
on the Nasdaq exchange and is
seeking to raise about $1.5 billion. Analysts at Jefferies have
valued iQiyi at $17 billion.
The move comes as Baidu
looks to raise money for the
unprofitable unit to stay ahead
in the fiercely competitive
video-streaming sector, where
technology titans Tencent
Holdings Ltd. and Alibaba
Group Holding Ltd. also have
strong plays. Baidu told investors during the company’s
most recent earnings call that
it would remain iQiyi’s controlling shareholder.
IQiyi, which was founded in
2010 and will list under the
ticker symbol IQ, said it is
China’s largest video-streaming service by amount of time
spent watching, with over 50
million paid subscribers.
Two of its original series,
“The Mystic Nine” and “Burning Ice,” have together garnered over 13 billion views,
the company said in its filing
with the U.S. Securities and
Exchange Commission.
“We distinguish ourselves
in the online entertainment industry by our leading technology platform powered by advanced AI, big data analytics
and other core proprietary
technologies,” the company
BARCELONA—Top U.S. carriers are taking differing
paths, both geographically and
technically, as they plot out
upgrades to their wireless
networks in the country.
T-Mobile US Inc. said it
plans to launch fifth-generation, or 5G, service across 30
cities in the fourth quarter,
hitting parts of New York, Los
Angeles, Las Vegas and Dallas
first.
The inclusion of Dallas
could ruffle feathers at rival
AT&T Inc., which picked its
headquarters city along with
suburb-heavy swaths of Waco,
Texas, and Atlanta for its
early 5G service rollout.
T-Mobile said it would initially target cellphone users
rather than businesses to better align with its customer
base.
“This race to be first at
something, that’s not really
relevant,” T-Mobile technology chief Neville Ray said
Tuesday in an interview, a jab
at competitors that plan to offer 5G service this year before
the attendant phones and engineering standards are set.
Mr. Ray said he hopes the
first phones that can use the
high-bandwidth standard will
be ready by early 2019,
though T-Mobile’s network
would get the upgrades
sooner.
Sprint Corp. earlier this
week said it would prepare its
infrastructure in Chicago, Dallas and Los Angeles with “5Glike capabilities” that should
give cellphone users faster internet connections. But it
likely won’t have full 5G service, with its high-speed connections, until the first half of
next year.
Verizon Communications
Inc. said earlier this year it
will try out the technology on
home-internet users in Sacramento, Calif., before expand-
IQIYI
Unprofitable iQiyi
to seek $1.5 billion
under Nasdaq listing
to hold off two rivals
Zhou Yan, known as GAI, on the hip-hop reality series ‘The Rap of China,’ a show created by Baidu’s iQiyi video-streaming unit.
said in its filing. “Our core
proprietary technologies are
critical to producing content
that caters to user tastes, delivering superior entertainment experience to our users.”
In China, people spend the
majority of their online-entertainment time on video, and
the market overall is expected
to grow to 688 billion yuan
($109 billion) by 2022, up
from about 51 billion yuan in
2012, iQiyi said, citing a report
by
iResearch
Consulting
Group.
But a tough competitive environment and the costs of
providing content have made
streaming an unprofitable
proposition for Baidu, as well
as for its internet rivals Tencent and Alibaba.
“We incurred net losses
since our inception,” iQiyi said
in its filing, including losses of
3.7 billion yuan in 2017.
Jun Wen Woo, a senior ana-
lyst at IHS Markit who tracks
online-video developments in
Asia, said iQiyi has potential
because of its use of AI, which
helps the company differentiate itself from competing Chinese video platforms operated
by much bigger rivals Alibaba
and Tencent.
“They can know what is the
most popular content and
what are the most favorite
things viewers like—and what
is coming up next,” she said.
In fundraising last year, iQiyi raised $1.53 billion, an investment that came months
after investors balked at a
$2.3 billion buyout bid from a
group led by Baidu Chief Executive Robin Li, saying the proposal undervalued the unit.
Goldman Sachs, Credit
Suisse and Bank of America
Merrill Lynch are the lead underwriters of the IPO.
—Wayne Ma in Hong Kong
contributed to this article.
Frontier Halts Payout
And Stock Drops 24%
Frontier Communications
Corp., which bet big on landlines in recent years, shed
nearly a quarter of its market
value Wednesday after suspending its dividend to help it
pay down debt.
Its shares tumbled 24% to
$7.03, contributing to a decline
of more than 80% over the
past year.
Analysts had been expecting
Frontier to suspend its dividend
as the company’s debt mounted
and its core business wobbled.
In November, a JPMorgan analyst wrote in a research note
that the board’s decision to pay
its December dividend “makes
no sense to us.”
The company, which is
based in Norwalk, Conn., said
the suspension will free up
about $250 million a year to
go toward debt reduction.
Frontier late Tuesday reported a fourth-quarter loss of
$1.03 billion, or $13.91 a share,
compared with a loss of $38
million, or $1.19 a share, a year
earlier. The loss in the latest
period was driven by a $1.82
billion after-tax goodwill impairment, which was partially
offset by a $830 million benefit from the U.S. tax overhaul.
Revenue fell 8% from the
year-earlier quarter to $2.22
billion
Frontier, which offers internet and landline services to
households and businesses in
29 states, saddled itself with
about $17 billion in debt by
buying networks in different
markets from Verizon Communications Inc. and AT&T Inc.
Frontier expected to generate steady revenue from residential internet and video services
as
wireless
use
proliferated. Instead the company has been shedding customers and scrambling to
meetits debt obligations.
Customer losses eased
slightly in the most recent
quarter and the company said
it has taken steps to try to stabilize its operations. But many
analysts believe returning to
growth could be difficult.
“We view [Frontier’s] turnaround as very much a ‘show
me’ story,” Wells Fargo analysts said Wednesday.
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T-Mobile
executive
Neville Ray
said 5G
phones could
be ready by
early 2019.
LUKE SHARRETT/BLOOMBERG NEWS
BY IMANI MOISE
One-quarter of U.S. consumers sold their smartphones after upgrading to a new device in 2017.
PHONES
Continued from page B1
cently as 2014, according to
BayStreet Research LLC, which
tracks device sales. Now, people are holding on to their
phones for an extra eight
months. By next year, the time
gap will widen to an estimated 33 months, BayStreet
said.
Device makers don’t lose
out completely when older
phones pass through several
hands. For Apple, more iPhone
users from the price-conscious
crowd translate into more revenue for its fast-growing services arm, including the App
Store and its music and payment services.
Apple has faced U.S. and
European government investigations in recent months over
the slowed performance of
older iPhones. The company
has repeatedly said it would
never intentionally shorten
battery life or degrade devices’ user experience. It has
since slashed replacement-battery prices.
Apple Chief Executive Tim
Cook, during an earnings call
on Feb. 1, said the secondary
market has expanded in recent
years and that the iPhone’s reliability has generally been
“fantastic.”
In a recent interview, D.J.
Koh, Samsung’s mobile chief,
said the growing popularity of
secondhand phones has Sam-
Second Act
Users are upgrading their mobile
phones less often.
Industry upgrade rate, quarterly
12%
10
4Q 2017
7.5%
8
6
4
2
0
2013
’14
’15
’16
’17
Source: UBS AG
THE WALL STREET JOURNAL.
sung rethinking whether to adjust its broad portfolio strategy.
Though nothing has been
decided, Samsung in certain
markets is weighing whether
to push refurbished flagship
devices more aggressively over
new releases of lower-cost
phones, Mr. Koh said.
A quarter of U.S. consumers
sold their smartphones after
upgrading to a new device in
2017, the highest rate in the
world, according to Deloitte.
That has created ample
supply for consumers like Alan
Earl, a 40-year-old digital
marketer from Phoenix. He recently bought himself a refurbished iPhone 6S for $350,
even though he gets new
iPhones for his two children
and wife when they are due
for upgrades. He didn’t care
for the iPhone X’s edge-toedge display and wasn’t interested in its facial recognition
features.
Mr. Earl said he just needs
his phone to text, call, check
social media and listen to music. “I don’t feel like I’m missing out,” he said. “I don’t need
any more phone than what
I’ve got.”
Steep prices for new
phones are a significant reason for the refurbished industry’s growth, said Remon
Gazal, chief commercial officer
at wireless distributor Brightstar Corp., which specializes in
trade-in distribution. “Now,
my phone costs more than my
laptop,” Mr. Gazal said.
Smartphones had roaring
double-digit growth until the
past two years. In 2017, new
smartphone shipments rose
just 2.7%, according to Gartner
Inc., a market researcher. In
the final three months, shipments declined for the first
time in the industry’s history.
Phone makers had expected
that they could compensate
for slowing volume by pushing
up prices. But customers
balked.
“It’s the worst-case scenario now,” said CK Lu, a Gartner research director. “Now
the phones are maybe too expensive.”
—Tripp Mickle
contributed to this article.
ing to other cities and launching 5G mobile service.
Each company’s upgrade
plans were on display here at
the Mobile World Congress,
an annual gathering of telecom companies from around
the world.
On Monday, the top U.S.
telecommunications regulator,
Federal Communications Commission Chairman Ajit Pai,
told the conference that the
government plans to auction
off two chunks of high-frequency airwave licenses this
fall to accelerate the development of 5G services.
U.S. telecom executives are
often eager to show how their
engineers are bringing innovation to their service, though
analysts have questioned how
much providers can spend on
a technology that has yet to
demonstrate its customer
base.
Bond-rating
service
Moody’s warned in September
that the companies’ basic
plans could cost tens of billions of dollars apiece. That is
partly because high-frequency
millimeter waves, which carry
more data, require more wireless equipment at shorter intervals.
“Each carrier is crafting its
5G strategy to meet its individual requirements and affordability,” Moody’s analyst
Mark Stodden said. “But in
the end, we think the cost of a
dense millimeter wave 5G network is too high for a full national overlay, and estimate it
will only reach about half of
the U.S. population.”
Glenn Lurie, chief executive
of telecom-software provider
Synchronoss Inc., said the
build out could cost even
more, especially if gaining
permission from local governments to add more gear
proves expensive.
He said that investment is
ultimately necessary but
won’t come cheap.
“Anyone who’s telling you
5G is not going to be expensive is wrong,” Mr. Lurie said.
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | B5
NY
MANAGEMENT
Some Seats Are More Equal Than Others
Activist investors push to serve on corporate boards’ compensation panels to get the most control over executives
When activist shareholders land in a boardroom,
they often jockey for the
committee seat with the
most control over the top
brass.
As activists increasingly
wrangle with directors over
board appointments, the
most popular pick is the
compensation committee, according to a Wall Street
Journal analysis of significant settlements involving
companies and activists between 2015 and 2017.
Because pay drives executive behavior, says longtime
activist David Batchelder, a
compensation committee
role “is the only one that really counts.”
He and two other shareholder representatives agitating for change will join
the board of Lowe’s Cos. on
March 22, following the
company’s settlement with
hedge fund D.E. Shaw & Co.
As part of the deal, the
home-improvement company promised that Mr.
Batchelder could serve on
the pay panel and a second
committee for his entire
board tenure.
This isn’t Mr. Batchelder’s
first executive-reward rodeo.
On four other compensation
committees, he has focused
on how executives and middle managers earn their incentives.
His favorite question:
Does the pay drive decisions
that the company wants to
see?
In the Journal analysis
of 82 activist settlements
at companies worth more
than $1 billion, there were
51 pacts that included specific committee assignments.
Shareholders became
pay-panel members in more
than half of those 51 examples.
JAMES YANG
BY JOANN S. LUBLIN
AND DAVID BENOIT
“A decade ago, a minority
of such settlements resulted
in investors winning committee spots,’’ estimates Damien
Park, a managing director of
Spotlight Advisors LLC,
which advises companies
and investors about shareholder activism. He attributes the shift to activists’
expanded emphasis on corporate operations.
Committees make critical
decisions, such as whether
to sell the business, shake
up the board or find a new
chief executive. Most
boards approve committee
decisions.
“If you really want to
force substantive change,
being on a key committee
is where you have to be,’’
says Ted White, a managing director of Legion
Partners Asset Management LLC, an activist investor that has pushed for
changes at Perry Ellis International Inc. and Chefs’
Warehouse Inc.
Ed Garden, co-founder of
activist Trian Fund Management, went on General Electric Co.’s pay panel and another committee after
joining its board last fall. He
also heads the compensation
committee at Bank of New
York Mellon Corp.
This week, activist investor Nelson Peltz takes his
board seat at Procter &
Gamble Co., where he’ll
serve on its governance
panel and a second committee.
The consumer-products
giant promised to put Mr.
Peltz on a board committee
as part of an agreement that
grew out of a costly proxy
fight last fall
Another popular seat that
activist shareholders seek is
the committee that explores
strategic alternatives. Activists occasionally encounter
resistance when they want
to create a new board panel
to take up the topic.
“There’s no reason why
the activist investor should
get to dominate that issue,’’
says Ethan Klingsberg, a
partner at the law firm of
Cleary Gottlieb Steen &
Hamilton LLP. He advises
board clients that all directors should assess alternate
strategies.
Activists contend a
smaller group makes that
work go faster. NRG Energy
Inc. in February 2017 put
electric-power industry veteran Charles John Wilder
on its board and in charge
of a new committee to consider potential deals and
operational improvements.
Mr. Wilder was credited
with turning around Dallasbased utility TXU Corp. before orchestrating its sale
in 2007 in one of the largest leveraged buyouts at
the time. His investment
firm, Bluescape Energy
Partners LLC, has joined
with well-known activist Elliott Management Corp. to
shake up NRG.
NRG’s ad hoc panel
worked for months to restructure the company, Mr.
Wilder said.
Under a transformation
plan crafted by the new committee and unveiled last July,
NRG proposed selling assets,
cutting costs and paring
debt. So far, it has reached
deals for $2.8 billion in assets that will reduce debt by
$7 billion.
Activists also wielded
clout on a strategic-review
committee at telecom company ShoreTel Inc. Board
members rejected two takeover bids from Mitel Networks Corp. in late 2014.
The next year, dissatisfied
shareholders pressed for a
board seat for Josef Vejvoda,
a portfolio manager at activist firm K2 & Associates Investment Management Inc.,
Mr. Vejvoda says. Marjorie
Bowen, a former investment
banker endorsed by activist
shareholder Legion Partners, joined ShoreTel’s board
and its just-formed strategic
advisory committee in August 2016.
Together, Mr. Vejvoda and
Ms. Bowen applied a great
deal of pressure, and ShoreTel accepted a lower Mitel
bid last July. Without activists, “there would have
not been a transaction because the rest of the committee would have lost
stamina,’’ Ms. Bowen says.
Don Joos, who was chief
executive of ShoreTel until
the deal closed in September, didn’t return calls for
comment.
Activists can play a powerful committee role during
CEO searches, too.
A year ago, Tiffany & Co.
ousted Frederic Cumenal after the luxury jeweler reported a string of disappointing results. Tiffany
later agreed to revamp the
board with activist investors
Jana Partners LLC and
Francesco Trapani, a significant shareholder who formerly headed rival luxury retailer Bulgari.
Tiffany also gave Mr. Trapani a spot on the board’s
CEO search committee, but
the activist’s appointment
initially made some directors
nervous, one person familiar
with the matter remembered.
Another knowledgeable
person says Mr. Trapani
strongly advocated for a luxury industry insider to be
CEO, and specifically wanted
Alessandro Bogliolo, whom
he had promoted at Bulgari,
for the job.
Mr. Trapani gained fellow
directors’ trust partly by introducing them to references
for Mr. Bogliolo.
“I thought he was the
right guy to manage the company through the new era,”
Mr. Trapani said, adding that
the search committee’s discussions were collegial.
Mr. Bogliolo took command of Tiffany in October.
Suit Says PwC Recruiting
Hinders Older Job Seekers
Hundreds of large employers travel to college campuses
each year to recruit entrylevel workers, a tradition two
rejected PricewaterhouseCoopers applicants argued this
week hurts the chances for
men and women over 40 to
land those same jobs.
Attorneys for the unsuccessful candidates—men who
applied to PwC
BUSINESS
dozens
of
EDUCATION times in their
late 40s and
early
50s—
aimed to convince San Francisco District Judge Jon Tigar
on Tuesday that 14,000 older
workers were similarly disadvantaged by the accounting
firm’s system of finding applicants at university career fairs
and school-affiliated job websites, over a four-year period.
PwC
disproportionately
hires younger workers for its
tax and assurance business
units, steers more seasoned
applicants into part-time and
seasonal roles, and “fosters an
age-conscious workplace in
which youth is highly valued,”
the litigants alleged.
In court, PwC argued its
hiring practices are meritbased, and that campus recruiting is an efficient and effective approach used by many
large employers. Kirkland &
Ellis LLP attorney Emily Nicklin said the firm hires less
than 5% of the 300,000 applicants who seek its U.S. positions annually.
The company’s hiring decisions have “nothing to do with
age,” Ms. Nicklin said. Claims
that older applicants are
steered away from full-time
roles are false, she added.
Professional-services firms
such as PwC, Accenture PLC
and McKinsey & Co. are
among the largest employers
of college finance and accounting majors and graduates
of master’s in business administration programs.
London-based PwC ranked
among the top 25 most attractive employers for M.B.A.s in
part because of its culture and
RICHARD B. LEVINE/ZUMA PRESS
BY KELSEY GEE
The professional-services firm says its hiring is based on merit.
advancement opportunities for
new hires, according to a 2017
survey by employer-branding
consultancy Universum.
The case could affect the
way large companies recruit
top talent from business
schools if the courts decide a
hiring practice discriminates,
even unintentionally, against
older applicants.
Millennials, who were born
between 1981 and 1997, recently overwhelmed the number of 35- to 50-year-olds in
the workforce, according to
the U.S. Bureau of Labor Statistics. However, the bureau’s
economists project that the
number of workers over 65
will grow faster than any
other age group in the coming
years, as Americans delay retirement longer.
That shift has stoked subtle
stereotypes about older workers’ performance and willingness to learn, which can have
tangible effects on their careers, said Michael North, assistant professor of management and organizations at
New York University’s Stern
School of Business.
Federal complaints of age
discrimination filed to the
Equal Employment Opportunity Commission and lawsuits
by workers who say they were
pushed out have become more
common in recent years. But
cases like the one against
PwC, which applies the federal
Age Discrimination in Employment Act to job applicants,
have little legal precedent.
Court documents filed
ahead of Tuesday’s hearing offer a rare glimpse into recruiting by privately held consulting and accounting firms such
as PwC.
The firm hired about 18% of
the applicants who were under
40 to its tax and assurance
business, compared with 3% of
candidates over that age, according to a statistical analysis of more than 100,000 candidates submitted by the
plaintiffs, using PwC data.
Ms. Nicklin called the statistical analysis “fundamentally flawed.”
A PwC spokeswoman said
half of the company’s full-time
hires in 2018 will come from
campus-recruiting efforts, and
candidates with relevant work
experience will make up the
other half.
The judge is expected to decide whether to add the
roughly 14,000 other older
workers who didn’t get job offers from PwC to the case in
the coming weeks.
A ruling on whether a bias
for young recruits prevented
those applicants from getting
jobs at PwC could be years
away.
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Frank G. Zarb School of Business include:
• Flex MBA programs
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Saturday, March 10, 2018 @ 11 a.m.
Graduate Open House
Sunday, March 25, 2018 | Check-in begins @ 11 a.m.
Register at hofstra.edu/wall
.
B6 | Thursday, March 1, 2018
THE WALL STREET JOURNAL.
* *
BUSINESS & FINANCE
Beijing Signals on Anbang
The government
seized control of the
insurer; here are five
takeaways from that
BY VANESSA FUHRMANS
DREW ANGERER/GETTY IMAGES
BY JAMES T. AREDDY
Three years ago, China’s
Anbang Insurance Group was
a symbol of the country’s rising clout in the investment
world. It had bought New
York’s Waldorf Astoria hotel
for $2 billion and was one of
several fast-growing and deeppocketed Chinese companies
with ambitious plans to expand abroad.
Last week, the Chinese government seized control of Anbang and charged its founder
and chairman with economic
crimes. This marked a turning
point in a clampdown over
what officials have called “irrational” investing. Here’s
what the takeover portends:
China is reining in big
spenders: In recent years, Anbang and other large conglomerates like HNA Group and Dalian Wanda Group have spent
tens of billions of dollars on
the likes of U.S. and European
hotels, movie theaters, office
towers and stakes in banks and
asset managers. China, trying
to stem capital outflows, has
scrutinized borrowing arrangements used to fund these
acquisitions.
One concern of authorities
is that many have been funded
with loans from domestic
banks, exposing the financial
sector to losses if assets fall in
value. China last summer
started investigating loans and
guarantees banks had provided
to conglomerates, putting a
chill on deal activity.
China has its own “too big
to fail” list: China’s only systemically important financial
businesses on an international
level, according to the Financial Stability Board—a global
group of central bankers—are
the country’s four largest
banks and Ping An Insurance.
Hotels, Pearson Team
For Tuition Program
But by seizing control of
Anbang Insurance Group, Chinese regulators have signaled
that—at least domestically—
the privately held insurer
group also is too big to fail.
Beijing sees “wealth”
products as a threat: In just
over a dozen years, Anbang
transformed itself into one of
the country’s bigger insurers—
over $300 billion in assets—in
part by attracting investors to
short-term,
high-yielding
wealth products that compete
for ordinary depositor savings.
Such products, commonly
issued and sold by banks as
well as insurers and other nonbank financial institutions,
have become a large source of
off-balance-sheet funding. The
banking sector has issued
more than $4 trillion worth.
Many short-dated wealth
and trust products have been
used to fund long-term and
sometimes risky investments
in illiquid assets such as real
estate and commercial loans.
Defaults so far have been few,
but authorities are concerned
because debt defaults in China
tend to spark investor protests—threatening the social
and economic stability that is
part of the ruling Communist
Party’s political legitimacy.
The takeover has parallels
with the U.S. bailout of AIG:
Like the U.S. government’s rescue of American International Group Inc. during the
2008 global financial crisis,
Beijing’s takeover of Anbang
was meant to limit wider repercussions from an insurer’s
risky financial endeavors.
In the AIG bailout, the Federal Reserve and U.S. Treasury
provided loans to the insurer
and took a majority stake in it,
helping prevent losses at the
many banks exposed to AIG
through derivatives. While
China’s insurance regulator
will run Anbang for at least a
year, its takeover so far hasn’t
involved a capital infusion, and
Anbang isn’t seen as being as
large a systemic risk as AIG.
It does, however, own
shares of many companies, including two Chinese banks in
which it has large stakes. Anbang’s financial problems
risked harming everyone who
had bought its insurance policies and investment products.
As in the AIG case, the gov-
ernment support risks sending
a dangerous signal to other
large, highly indebted companies: If you run into financial
trouble, authorities will step in
to rescue you.
The takeover is about the
future, not the past: Anbang
has been in regulators’
crosshairs for more than a
year. Under pressure, it began
reducing offerings of its riskiest high-yield products early
last year. A team of regulators
set up camp inside the insurer
to supervise operations in
June 2017, around the time its
brash founder and chairman,
Wu Xiaohui, was detained on
suspicion of economic crimes.
Markets are now watching
for how the government honors its pledge to keep Anbang
operating—and for the precedents it sets for disposing of
other debt-addled companies.
China’s financial regulatory regime is itself being re-engineered, and officials in charge
of Anbang say they will use
the next year restructuring the
firm to find strategic shareholders who can bring in more
capital.
—Stella Yifan Xie
contributed to this article.
Tuition aid is one of the
most common—and yet most
underused—benefits employers offer their workers. The
hotel industry has good reason
for wanting to change that.
In one of the tightest labor
markets in decades, the already high rate of annual turnover in hospitality jobs—which
includes lodging and restaurants—has crept to above 70%
in recent years, according to
Bureau of Labor Statistics. At
the same time, a boom in hotel
development has the industry
scrambling to attract even
more workers, and industry
executives say more graduates
from hotel-administration programs are going into other
fields.
With that economic backdrop, the American Hotel &
Lodging Association and education company Pearson PLC
are pairing up to launch a pilot program that will foot the
bill for hotel-industry workers
to get two-year, online associ-
ate degrees and cover much of
the cost of bachelor degrees.
The idea is to attract and keep
employees longer, while cultivating a new crop of managers.
Companies such as Starbucks Corp., McDonald’s
Corp. and Walmart Inc. have
expanded tuition-assistance
programs in recent years to
foster employee loyalty and
help front-line workers overcome the rising cost of higher
education.
But the hotel initiative is
one of the most ambitious efforts to date: Ten companies
with a collective 50,000 employees—including Red Roof
Inns, Wyndham Hotels and
Resorts and New Castle Hotels & Resorts—are participating in the two-year pilot.
Pearson Executive Vice
President Jim Homer said the
program won’t cost participating companies more than what
they already offer in tuition
benefits—in most cases between $1,000 and $5,250 a
year per employee.
Dividend Changes
Dividend announcements from February 28.
Company
Symbol
Yld %
Amount
New/Old
Frq
Payable /
Record
Increased
BWX Technologies
Carters
Delek US Hldgs
Douglas Dynamics
EOG Resources
Equity Lifestyle Prprts
Farmers National Banc
First Connecticut Bncp
First Midwest Bancorp
Greif B
Haverty Furniture
Haverty Furniture A
McGrath RentCorp
Nutrisystem
Sonic Automotive Cl A
BWXT
CRI
DK
PLOW
EOG
ELS
FMNB
FBNK
FMBI
GEF.B
HVT
HVT.A
MGRC
NTRI
SAH
1.0
1.5
2.3
2.4
0.7
2.6
2.1
2.6
1.8
4.2
3.5
3.2
2.7
3.3
1.2
.16 /.11
.45 /.37
.20 /.15
.265 /.24
.185 /.1675
.55 /.4875
.07 /.06
.16 /.15
.11 /.10
.63 /.62
.18 /.15
.17 /.1425
.34 /.26
.25 /.175
.06 /.05
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Mar29 /Mar12
Mar23 /Mar12
Mar26 /Mar12
Mar30 /Mar22
Apr30 /Apr16
Apr13 /Mar30
Mar30 /Mar09
Mar19 /Mar09
Apr10 /Mar23
Apr01 /Mar19
Mar29 /Mar14
Mar29 /Mar14
Apr30 /Apr16
Mar19 /Mar08
Apr13 /Mar15
Stocks
Brown & Brown
2:1
BRO
Mar28 /Mar29
Foreign
Bank of Montreal
Bank of Nova Scotia
LyondellBasell Inds
Triton International
BMO
BNS
LYB
TRTN
3.9
4.2
3.7
6.3
.7322
.64544
1.00
.45
FCBC
2.7
.48
Q
Q
Q
Q
May28 /May01
Apr26 /Apr03
Mar12 /Mar05
Mar28 /Mar12
Special
First Community Bncshrs
Mar23 /Mar09
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO:
spin-off.
ASIA 4.19.18–4.20.18
MAXIMILIAN BITTNER | LAZADA GROUP
CONNIE CHAN | ANDREESSEN HOROWITZ
ALICE H. CHANG | PERFECT CORP.
NICOLE EAGAN | DARKTRACE
BROOKS ENTWISTLE | UBER TECHNOLOGIES
CARLOS GHOSN | RENAULT-NISSAN-MITSUBISHI ALLIANCE
JENNY LEE | GGV CAPITAL
ZHEN LIU | BYTEDANCE
ELIZABETH ROSSIELLO | BITPESA
CAESAR SENGUPTA | GOOGLE
VIJAY SHARMA | PAYTM
EDITH YEUNG | 500 STARTUPS GREATER CHINA
RICHARD YU | HUAWEI CONSUMER BUSINESS GROUP
WENSONG ZHANG | DIDI CHUXING
Register Today: DLIVEASIA.WSJ.COM
© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6169
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
25029.20 t 380.83, or 1.50%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 26.18 21.47
P/E estimate *
17.02 17.81
Dividend yield
2.10
2.31
All-time high 26616.71, 01/26/18
Nasdaq Composite Index
Last
2713.83 t 30.45, or 1.11%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio * 25.49 24.80
P/E estimate *
17.49 18.22
Dividend yield
1.89
2.00
All-time high: 2872.87, 01/26/18
Last Year ago
7273.01 t 57.35, or 0.78%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.75
25.35
P/E estimate *
20.15
20.05
Dividend yield
1.01
1.15
All-time high: 7505.77, 01/26/18
Current divisor 0.14523396877348
65-day moving average
Session high
UP
Close
t
DOWN
Session open
2900
7500
25500
2825
7300
24700
2750
7100
23900
2675
6900
23100
2600
6700
65-day moving average
Open
t
Close
26300
65-day moving average
22300
Session low
6500
2525
Bars measure the point change from session's open
Dec.
Jan.
Nov.
Feb.
6300
2450
21500
Nov.
Dec.
Jan.
Nov.
Feb.
Dec.
Jan.
Feb.
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
25576.15 25022.42 25029.20 -380.83
-1.50
26616.71 20404.49
18.5
1.3
11.3
Transportation Avg 10573.33 10380.04 10381.99 -141.80
-1.35
11373.38
8783.74
8.2
-2.2
4.8
774.47
647.90
-3.8
-7.5
4.0
29630.47 24125.20
757.37
610.89
12.5
11.8
1.1
-0.1
8.4
8.2
Industrial Average
677.09
-3.21
-0.48
28460.97 27978.36 27980.70 -314.73
721.75
709.91
709.91 -8.49
-1.11
Utility Average
Total Stock Market
Barron's 400
Nasdaq Stock Market
Nasdaq Composite
7386.80
Nasdaq 100
6964.16
S&P
500 Index
2761.52
668.62
668.81
7273.01
6854.42
-1.18
7273.01 -57.35
6854.42 -45.93
2713.54
7505.77
7022.97
-0.78
-0.67
2713.83 -30.45
-1.11
2872.87
-1.20
MidCap 400
SmallCap 600
1895.59
941.84
1864.59
921.34
1864.61 -22.60
921.34 -16.49
-1.76
1995.23
979.57
Other Indexes
Russell 2000
1543.75
1512.45
1512.45 -24.03
-1.56
1610.71
NYSE Composite
12873.85 12650.81 12652.55 -166.68
558.36
548.76
4651.11
4576.02
Value Line
NYSE Arca Biotech
5793.83
5332.53
5.4
7.2
23.2
27.1
2328.95
1.5
1681.04
815.62
6.0
6.9
-1.9
-1.6
7.4
9.1
1345.24
7.0
-1.5
7.0
8.5
-1.2
4.6
-1.36
13637.02 11324.53
589.69
503.24
3.9
-2.4
2.2
4576.21 -96.05
-2.06
4939.86
3449.61
27.5
8.4
5.6
-1.30
Volume, Advancers, Decliners
Company
Volume
(000)
Symbol
SPDR S&P 500
8.8
-7.56
548.76
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.
NYSE NYSE Amer.
Most-active issues in late trading
13.6
15.6
13.3
Late Trading
Last
Net chg
20,949.6 271.63
SPY
After Hours
% chg
High
-0.02
Low
-0.01 275.98 271.25
iShares MSCI Emg Markets EEM
8,960.3
48.20
0.18
0.37
48.40
47.99
General Electric
GE
6,832.3
14.18
0.07
0.50
14.28
14.09
AT&T
T
5,744.5
36.45
0.15
0.41
36.73
36.29
Apple
AAPL
5,506.2 178.35
0.23
0.13 180.28 164.34
Ford Motor
F
5,489.5
10.64
0.03
0.28
10.72
10.60
Comcast Cl A
CMCSA 5,240.5
36.21
…
unch.
36.88
36.21
Bank of America
BAC
4,963.0
32.15
0.05
0.16
32.52
32.08
Percentage gainers…
Novavax
NVAX
2,570.2
2.74
0.57
26.27
2.74
2.17
3D Systems
DDD
307.8
10.88
1.38
14.53
11.40
8.80
Builders FirstSource
19.18
BLDR
126.2
20.75
1.57
8.19
21.74
Habit Restaurants Cl A HABT
36.8
9.30
0.65
7.51
9.50
8.50
Health Ins Innovations A HIIQ
77.0
33.50
2.30
7.37
36.05
31.15
NYSE Arca Pharma
548.87
538.25
538.25
-8.43
-1.54
593.12
498.46
4.8
-1.2
-1.7
...And losers
KBW Bank
115.28
112.67
-1.31
-1.15
116.52
88.02
13.5
5.6
PHLX§ Gold/Silver
112.70
16.0
Portola Pharmaceuticals PTLA
346.7
32.50
-9.82
-23.20
46.00
28.00
79.37
78.27
-0.70
-0.89
93.26
76.42
-8.0
-8.2
0.6
Box Cl A
BOX
PHLX§ Oil Service
78.27
851.1
20.99
-3.07
-12.76
24.22
20.48
140.35
133.97
134.02
180.81
117.79
-25.9
R.R. Donnelley Sons
RRD
91.6
6.90
-0.64
-8.49
7.54
6.90
1385.93
20.44
1361.13
15.65
1392.86
37.32
960.01
9.14
38.2
58.3
Halcon Resources
HK
71.7
5.54
-0.51
-8.43
6.20
5.48
L Brands
LB
569.4
46.20
-3.13
-6.35
49.99
43.85
PHLX§ Semiconductor
Cboe Volatility
-4.96 -3.57
1362.02 -12.69
1.26
19.85
-0.92
6.78
Nasdaq PHLX
Region/Country Index
Close
24.0
14.2
Percentage Gainers...
Net chg
Latest
% chg
YTD
% chg
–1.19
–1.06
–1.04
1.2
0.9
0.5
DJ Americas
648.42
–7.58 –1.16
Sao Paulo Bovespa 85353.60 –1581.84 –1.82
S&P/TSX Comp
15442.68 –228.47 –1.46
S&P/BMV IPC
47437.93 –532.26 –1.11
Santiago IPSA
4232.81
–29.62 –0.69
1.0
11.7
–4.7
–3.9
0.5
–37.63
–4.31
–2.80
3122.48
400.71
268.08
The Global Dow
DJ Global Index
DJ Global ex U.S.
Americas
Brazil
Canada
Mexico
Chile
8.7
79.8
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
-10.4 -12.4
379.63
382.40
3994.45
5320.49
12435.85
1500.56
22607.61
535.58
1285.47
9840.30
573.87
8906.38
7231.91
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
6016.00
Shanghai Composite 3259.41
Hang Seng
30844.72
S&P BSE Sensex
34184.04
Nikkei Stock Avg
22068.24
Straits Times
3517.94
Kospi
2427.36
Weighted
10815.47
–2.73 –0.71
–0.41
–1.59
–0.39
–15.72
–0.44
–23.44
–0.44
–54.88
–10.50 –0.69
–0.51
–116.85
–0.42
–2.25
–25.37 –1.94
–59.90 –0.61
–0.34
–1.98
–86.14 –0.96
–50.54 –0.69
–2.5
–0.8
0.4
0.1
–3.7
–0.6
3.5
–1.7
11.4
–2.0
0.9
–5.1
–5.9
–40.90 –0.68
–32.66 –0.99
–423.94 –1.36
–0.47
–162.35
–321.62 –1.44
–22.45 –0.63
–28.78 –1.17
Closed
…
–0.8
–1.4
3.1
0.4
–3.1
3.4
–1.6
1.6
Company
Symbol
Endocyte
Axon Enterprise
Student Transportation
PHH Corp
Invuity
ECYT
American Public Education
Etsy
Cronos Group
Myomo
Enphase Energy
APEI
Sorrento Therapeutics
Syneos Health Cl A
Chico's FAS
Five Prime Therapeutics
Pareteum
SRNE
STB
PHH
IVTY
ETSY
CRON
MYO
ENPH
SYNH
CHS
FPRX
TEUM
52-Week
Low
% chg
High
41.19
27.82
24.63
24.18
23.88
6.55 1.17
36.30 20.57
7.51 5.42
15.00 8.01
9.70 3.30
162.4
43.1
33.4
-17.3
-48.1
Zosano Pharma
Frontier Communications
ACADIA Pharmaceuticals
Community Health Systems
Maiden Holdings
ZSAN
30.75
25.31
9.17
4.61
3.32
5.45
4.28
1.55
0.77
0.53
21.54
20.35
20.34
20.05
19.00
32.35 17.40
26.23 9.41
11.90 1.00
23.20 2.07
3.45 0.65
50.0
136.8
300.4
...
106.2
Stratasys Ltd.
Frank's International
GenMark Diagnostics
Huron Consulting Group
Sonoma Pharmaceuticals
SSYS
9.95
41.90
10.04
21.26
2.28
1.50
6.10
1.37
2.68
0.28
17.75
17.04
15.80
14.42
14.00
10.05 1.50
61.10 31.10
14.83 6.96
48.87 17.01
3.39 0.50
93.2
-5.3
-29.4
-52.5
-12.3
Donnelley Finl Solutions
Sequential Brands Group
Crocs
Bill Barrett
Installed Bldg Products
DFIN
Volume % chg from Latest Session
(000) 65-day avg Close % chg
SPDR S&P 500
BioPharmX
iShares MSCI Emg Markets
General Electric
Bank of America
SPY
Comcast Cl A
Finl Select Sector SPDR
Akers Biosciences
Chesapeake Energy
ProSharesUltVIXST
CMCSA 63,800
XLF
61,588
100,755
99,812
93,209
81,734
67,052
BAC
54,584
52,958
46,946
AKER
CHK
UVXY
-5.7
1130.8
33.7
-4.0
-12.5
271.65
0.25
48.02
14.11
32.10
52-Week
High
Low
-1.01
13.59
-1.44
-2.69
-0.71
286.63 231.61
0.90
0.10
52.08 37.39
30.54 13.95
32.85 22.07
149.2 36.21 -1.23
-7.2 28.87 -1.40
309.9 0.73 -2.67
56.7 2.82 -7.84
20.3 17.12 5.94
44.00
30.33
2.90
6.59
87.44
34.78
22.00
0.12
2.53
8.52
Selected rates
A consumer rate against its
benchmark over the past year
Five-year ARM, Rate
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
5-year adjustablerate mortgage
t (ARM)
4.00%
3.00
t
5-year Treasury
note yield
1.00
0.00
MAM J J A S O ND J F
2017
2018
2.88%
800-644-8261
Manasquan Savings Bank
2.88%
Manasquan, NJ
732-292-8400
Foxboro Federal Savings
Foxboro, MA
3.00%
877-369-3331
Langley Federal Credit Union
3.00%
Newport News, VA
800-826-7490
Oritani Bank
Twp of Washington, NJ
3.00%
888-674-8264
10
2.25
5
1.50
One year ago
0.75
0
–5
0.00
–10
t
1
3 6
month(s)
1 2 3 5 710
years
maturity
30
s
Euro
s
Yen
Interest rate
Federal-funds rate target
1.25-1.50 1.25-1.50
Prime rate*
4.50
4.50
Libor, 3-month
1.92
2.02
Money market, annual yield
0.29
0.30
Five-year CD, annual yield
1.56
1.59
30-year mortgage, fixed†
4.41
4.46
15-year mortgage, fixed†
3.89
3.93
Jumbo mortgages, $424,100-plus† 4.75
4.79
Five-year adj mortgage (ARM)† 4.35
4.33
New-car loan, 48-month
3.56
3.60
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.50 l
l
3.75
l
1.09
0.25 l
1.21 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.50
2.02
0.36
1.59
4.47
3.94
4.96
4.37
3.60
1.25
1.25
1.76
-0.12
0.08
0.55
0.80
0.32
0.47
0.66
2017
2018
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
1424.373
2.689
2.736
2.736
1.818 –0.068 0.152
10-yr Treasury, Ryan ALM 1666.995
DJ Corporate
371.260
Aggregate, Barclays Capital 1903.380
High Yield 100, Merrill Lynch
n.a.
Fixed-Rate MBS, Barclays 1951.200
Muni Master, Merrill
n.a.
2.870
3.640
3.160
n.a.
3.390
n.a.
2.943
3.653
3.180
6.006
3.390
2.432
2.943
3.653
3.180
n.a.
3.400
n.a.
2.058
2.879
2.380
n.a.
2.660
n.a.
0.844
2.210
0.493
n.a.
0.137
n.a.
–0.663
2.100
1.136
n.a.
1.024
n.a.
n.a.
n.a.
6.002
n.a.
n.a.
n.a.
n.a.
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
WSJ
.COM
FI
GNMK
HURN
SNOA
SQBG
CROX
BBG
IBP
52-Week
Low
% chg
-2.05
-2.21
-6.25
-1.06
-1.20
-24.73
-23.92
-20.04
-17.15
-16.67
58.20 3.61
44.25 6.08
41.20 24.50
10.51 3.85
16.05 5.55
-87.8
-83.9
-32.0
-44.3
-62.6
18.23
5.23
4.12
35.00
3.50
-3.60
-0.96
-0.73
-6.20
-0.58
-16.48
-15.51
-15.05
-15.05
-14.22
30.88 18.04
12.37 5.22
13.67 3.63
46.85 29.53
8.25 3.50
-9.6
-57.1
-66.3
-18.9
-50.3
17.31
1.98
12.24
4.53
59.75
-2.71
-0.30
-1.83
-0.66
-8.25
-13.54
-13.16
-13.01
-12.72
-12.13
24.00 17.25
4.08 1.36
14.95 5.93
6.93 2.66
79.40 46.65
-22.4
-47.8
77.4
-19.4
20.8
Ranked by change from 65-day average*
Symbol
Student Transportation
Stellar Acquisition III
M I Acquisitions
Hartford Multi US Equity
SPDR MSCI EM Strategic
STB
PHH Corp
Bright Scholar Educ ADR
American River Bankshares
Axon Enterprise
TPG RE Finance Trust
PHH
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
23,192
766
MACQ
1,221
ROUS
296
QEMM
407
10980
8943
6100
5173
4680
7.49
10.25
10.35
32.04
65.64
24.63
-0.29
0.49
0.08
-0.71
7.51 5.42
10.49 9.99
10.50 9.95
33.42 26.39
69.92 53.61
14,122
3,943
136
7,787
983
3346
1928
1829
1305
1251
10.58
18.10
15.30
34.83
18.53
24.18
-5.29
-1.99
27.82
-1.17
15.00
28.18
16.49
36.30
20.70
STLR
BEDU
AMRB
AAXN
TRTX
US$vs,
YTDchg
Wed
in US$ per US$ (%)
8.01
10.55
12.97
20.57
18.22
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0497 20.1220 8.2
Brazil real
.3081 3.2461 –2.0
Canada dollar
.7793 1.2832 2.1
Chile peso
.001681 594.90 –3.3
Ecuador US dollar
1
1 unch
Mexico peso
.0531 18.8372 –4.2
Uruguay peso
.03522 28.3900 –1.4
Venezuela b. fuerte .00003528960.0001 279927.3
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
Australian dollar
.7762 1.2883 0.6
China yuan
.1580 6.3310 –2.6
Hong Kong dollar
.1278 7.8261 0.2
India rupee
.01534 65.210 2.1
Indonesia rupiah .0000727 13763 2.1
Japan yen
.009375 106.67 –5.4
Kazakhstan tenge .003120 320.47 –3.7
Macau pataca
.1240 8.0624 0.2
Malaysia ringgit
.2549 3.9230 –3.4
New Zealand dollar
.7211 1.3868 –1.6
Pakistan rupee
.00904 110.610 –0.04
Philippines peso
.0192 52.109 4.3
Singapore dollar
.7548 1.3248 –0.9
South Korea won .0009215 1085.22 1.7
Sri Lanka rupee
.0064504 155.03 1.0
Taiwan dollar
.03408 29.347 –1.1
Thailand baht
.03177 31.480 –3.4
Vietnam dong
.00004396 22746 0.2
Commodities
.04799 20.837
.1638 6.1064
1.2194 .8201
.003885 257.40
.009857 101.45
.1266 7.9019
.2920 3.4246
.01777 56.290
.1206 8.2910
1.0586 .9446
.2632 3.7988
.0371 26.9530
1.3761 .7267
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
–2.1
–1.6
–1.6
–0.6
–2.0
–3.7
–1.6
–2.4
1.3
–3.1
0.1
–4.2
–1.8
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6525 .3770 –0.03
.0566 17.6585 –0.6
.2876 3.4770 –0.1
3.3252 .3007 –0.2
2.5974 .3850 0.01
.2744 3.644 –0.1
.2666 3.7506 0.01
.0848 11.7948 –4.6
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 84.19
0.16 0.18 –2.08
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Wednesday
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
MHLD
High
6.24
7.03
24.92
5.12
6.00
Asia-Pacific
s
WSJ Dollar index
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
CYH
Company
Country/currency
15%
3.00
Wednesday
t
2.00
Florence Savings Bank
Florence, MA
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
4.35%
ACAD
Latest Session
Close Net chg % chg
U.S.-dollar foreign-exchange rates in late New York trading
Forex Race
notes and bonds
Bankrate.com avg†:
* 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.
Currencies
CREDIT MARKETS & CURRENCIES
U.S. consumer rates
NYSE Arca
* 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
Sources: SIX Financial Information; WSJ Market Data Group
Consumer Rates and Returns to Investor
FTR
Volume Movers
Symbol
GE
Symbol
1.73
7.58
1.48
2.06
0.80
Company
EEM
Company
5.93
34.83
7.49
10.58
4.15
Most Active Stocks
BPMX
Nasdaq
Total volume*2,330,446,000 310,500,339
Adv. volume* 721,519,468 55,350,764
Decl. volume*1,587,691,915 254,704,661
Issues traded
3,079
1,343
Advances
811
305
Declines
2,153
1,019
Unchanged
115
19
New highs
62
3
New lows
74
15
Closing tick
705
141
Closing Arms†
0.83
1.10
Block trades*
9,198
1,367
Percentage Losers
Latest Session
Close Net chg % chg
AAXN
Total volume*1,100,326,391 26,765,256
Adv. volume* 198,552,851 20,005,741
Decl. volume* 879,204,614 6,434,746
Issues traded
3,076
331
Advances
863
119
Declines
2,113
189
Unchanged
100
23
New highs
41
0
New lows
124
11
Closing tick
187
47
Closing Arms†
1.73
0.19
Block trades*
7,392
181
630.91
-4.04
193.95
61.64
2.667
1315.50
-1.45
-1.37
-0.016
...
-0.64
% Chg
YTD
% chg
645.87
532.01
8.08
0.89
-0.74 200.52
66.14
-2.17
3.63
-0.60
unch. 1362.40
166.50
42.53
2.55
1200.10
1.40
14.51
-4.72
5.33
0.04
2.02
-9.69
0.70
.
THE WALL STREET JOURNAL.
B8 | Thursday, March 1, 2018
COMMODITIES
Futures Contracts
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1550
3.1565
3.1020
3.1075 –0.0500
March
May
3.1835
3.1860
3.1255
3.1325 –0.0540
Gold (CMX)-100 troy oz.; $ per troy oz.
1315.40 1321.00
1315.40 1315.50
…
March
April
1318.90 1323.70
1316.70 1317.90 –0.70
June
1324.50 1329.20
1322.50 1323.70 –0.50
Aug
1329.00 1334.00
1329.00 1329.50 –0.60
Oct
1336.20 1338.20
1334.30 1335.50 –0.60
Dec
1342.60 1347.20
1341.00 1341.80 –0.70
Palladium (NYM) - 50 troy oz.; $ per troy oz.
1042.00 1050.20
1039.55 1047.20 18.00
March
June
1032.30 1041.90
1030.25 1037.60
8.35
Sept
1026.35 1027.55
1026.35 1031.95
8.55
Platinum (NYM)-50 troy oz.; $ per troy oz.
March
...
...
...
986.60
3.50
April
985.00
989.50
978.50
988.10
3.50
Silver (CMX)-5,000 troy oz.; $ per troy oz.
March
16.335
16.430
16.285
16.324 –0.022
May
16.440
16.520
16.360
16.407 –0.027
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
April
62.83
63.44
61.36
61.64 –1.37
May
62.73
63.29
61.20
61.47 –1.43
June
62.45
62.99
60.89
61.14 –1.49
July
62.04
62.55
60.45
60.67 –1.55
Dec
59.57
60.08
57.98
58.15 –1.61
Dec'19
55.90
56.33
54.39
54.46 –1.53
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
March
1.9590
1.9646
1.8920
1.9136 –.0494
April
1.9680
1.9723
1.9001
1.9035 –.0652
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7965
1.8016
1.7313
1.7577 –.0457
March
April
1.9788
1.9862
1.9209
1.9246 –.0597
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.692
2.710
2.659
2.667 –.016
April
May
2.720
2.737
2.689
2.696 –.016
June
2.756
2.772
2.723
2.735 –.011
July
2.798
2.810
2.764
2.779 –.008
Sept
2.793
2.805
2.764
2.773 –.013
Oct
2.803
2.822
2.779
2.788 –.013
Open
interest
March
May
120.00
120.75
120.50
122.40
120.00
120.55
121.05
122.00
March
May
13.00
12.90
13.62
13.49
12.98
13.48
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
150
75,543
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March
June
143-260 144-180
142-240 143-180
143-180
142-170
144-140
143-140
28.0 74,398
28.0 767,405
March
June
120-145 120-225
119-270 120-035
120-095
119-215
120-210
120-015
8.5 411,198
8.0 3,296,344
March
June
114-057 114-082
113-277 113-310
114-012
113-232
114-072
113-297
2.5 241,116
3.0 3,227,917
March
June
106-155 106-165
106-077 106-080
106-142
106-057
106-157
106-075
… 183,034
… 1,729,663
… 290,435
… 425,684
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
485,041
255,922
305,061
139,915
239,416
120,336
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Feb
April
98.583
98.340
98.585
98.345
98.583
98.340
98.583
98.340
March
June
93.844
93.828
94.094
93.828 s
93.844
93.797
94.078
93.859
.344
.344
33,218
5,888
March
April
98.1600
98.1100
98.1600
98.1125
98.1600
98.1075
98.1600
98.1025
.0125
.0025
1,232
2,131
March
June
Dec
Dec'19
97.8725
97.7250
97.4700
97.1300
97.8925
97.7350
97.4750
97.1500
t 97.8600
t 97.7000
t 97.4400
97.8850
97.7250
97.4700
97.1500
.0125
.0050
.0050
.0300
1,360,164
1,627,056
1,896,662
2,040,635
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
4,355
131,879
1 Month Libor (CME)-$3,000,000; pts of 100%
6,991
138,788
Eurodollar (CME)-$1,000,000; pts of 100%
317,410
206,240
82,359
98,125
71,444
119,889
97.0850
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
March
June
.9320
.9376
.9395
.9451
.9310
.9372
.9386
.9446
March
June
.7829
.7843
.7837
.7849
March
June
1.3920
1.3971
March
June
369.75
378.25
374.50
382.00
4.00 22,046
2.75 736,246
March
May
264.00
270.25
267.25
273.00
262.00
267.00
263.00
270.25
3.00
.50
Soybeans (CBT)-5,000 bu.; cents per bu.
.7789
.7805
.7796 –.0047 136,166
.7810 –.0046
5,505
1.3926
1.3978
1.3765
1.3832
1.3778 –.0148 187,866
1.3833 –.0148
6,970
1.0662
1.0747
1.0667
1.0751
1.0584
1.0673
1.0609 –.0057
1.0694 –.0057
1037.75
1049.00
1048.00 s
1059.00
1035.00
1045.75
1045.00
1055.50
7.00 15,767
6.00 386,997
March
May
388.50
391.20
398.00 s
399.20 s
387.60
389.90
394.20
394.70
7.70
7,456
5.50 234,042
March
May
32.22
32.47
32.40
32.65
31.94
32.20
31.96
32.23
–.23
5,229
–.17 247,641
March
May
1201.00
1218.00
1244.50
1260.00
1201.00
1214.50
1239.00
1254.00
Soybean Meal (CBT)-100 tons; $ per ton.
March
April
May
June
Sept
Dec
.7794
.7801
.7788
.7794
.7803
.7792
.7819
.7815
.7816
.7820
.7820
.7796
.7761
.7764
.7767
.7763
.7801
.7771
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Wheat (CBT)-5,000 bu.; cents per bu.
44.00
38.00
March
June
.05291
.05220
.05312
.05236
.05281
.05208
.05291 –.00009 187,179
.05216 –.00009
2,043
March
June
1.2249
1.2333
1.2257
1.2341
1.2202
1.2288
1.2217 –.0036 526,957
1.2302 –.0035 31,939
t
t
British Pound (CME)-£62,500; $ per £
65
4,853
March
May
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
t
.7778
.7779
.7779
.7781
.7786
.7793
Mexican Peso (CME)-MXN 500,000; $ per MXN
1,345
6,563
Euro (CME)-€125,000; $ per €
March
May
464.50
478.00
487.50 s
499.50 s
464.00
476.50
484.50
495.00
21.25
5,418
18.00 227,334
March
May
489.00
504.75
512.25 s
528.75 s
489.00
503.75
508.25
522.25
19.25
2,295
17.50 139,474
Mini DJ Industrial Average (CBT)-$5 x index
March
May
597.75
609.00
606.75
622.75
597.75
609.00
606.00
621.75
9.50
12.75
S&P 500 Index (CME)-$250 x index
Wheat (KC)-5,000 bu.; cents per bu.
Wheat (MPLS)-5,000 bu.; cents per bu.
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
March
April
146.250
148.900
147.000
149.600
144.400
146.550
144.750 –1.800
147.000 –2.200
Feb
April
128.350
124.250
129.775
125.175
127.500
122.925
127.500
123.275
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
t
69.500
81.800
.0065 258,707
.0066
2,941
Canadian Dollar (CME)-CAD 100,000; $ per CAD
758
31,642
85,592
49,732
March
521.20
523.70
513.30
May
510.80
513.00
501.70
Milk (CME)-200,000 lbs., cents per lb.
March
14.10
14.16
14.00
April
14.14
14.23
14.05
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,209
2,210
2,209
March
May
2,224
2,226
2,179
516.60 –6.40
501.70 –10.00
1,901
4,619
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
14.02
14.11
–.03
–.02
2,240
2,218
25577
25603
2750.10
25018
25050
2761.50
2712.00
Mini S&P 500 (CME)-$50 x index
2746.50
2751.75
March
June
–.0018 105,841
–.0018
836
–.0018
587
–.0018
3,244
–.0018
486
–.0018
308
2762.00
2767.00
2712.00
2716.75
25038
25070
–391 116,354
–391
1,691
2714.40 –33.10
84,544
2714.50 –33.00 3,165,874
2719.50 –33.25 128,048
Mini S&P Midcap 400 (CME)-$100 x index
–.525
658
–.975 139,110
67.225 –2.725
80.675 –1.350
25411
25469
March
13,661
18,518
67.125
80.525
68,019
949
Index Futures
March
June
March
1890.00
1896.90
1861.90
March
June
6913.8
6942.0
6970.5
6998.0
6857.8
6886.8
March
June
1540.90
1541.60
1544.60
1541.90
1508.40
1529.80
1511.40 –26.90
1514.90 –25.90
24,418
104
March
1519.40
1522.70
1503.10
1503.10 –15.40
259
March
June
90.31
89.95
90.65
90.25
90.25
89.85
Mini Nasdaq 100 (CME)-$20 x index
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
U.S. Dollar Index (ICE-US)-$1,000 x index
4,367
3,505
1
423
–9 128,600
1864.50 –22.90
6865.0
6893.3
74,073
–50.8 222,061
–49.5
9,003
90.55
90.16
.27
.26
33,097
4,018
Source: SIX Financial Information
Expected Previous
change
week
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
Natural gas (bcf)
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
1,202,602
...
1,199 1,349
423,498
251,817
25,921
50
25,871
225,896
2,000
...
100
...
...
...
420
249
26
0
26
223
1,760
...
2
4-week
avg
5-year
avg
Current
...
-1,000
...
...
...
...
Net crude, petroleum
products, incl. SPR
1,867,883
43
139
13
126
31
250
Expected Previous
change
week
Year
ago
4-week
avg
5-year
avg
1,204
1,198
9,105
...
8,937 9,911
9,510
9,534
520
256
27
0
27
229
422
249
25
0
25
224
451
238
35
0
35
202
7,282
446
9
0
9
437
...
...
...
...
...
...
7,021 7,589
350 457
57
30
0
0
57
30
293 427
7,521
545
33
0
33
512
7,567
493
16
0
16
477
2
2
2
...
...
...
...
...
45
164
14
151
38
254
1,864 2,044
43
140
12
128
32
251
1,870
40
137
15
122
39
228
1,893
...
...
Current
Total petroleum
product
Expected Previous
change
week
Year
ago
4-week
avg
...
...
...
...
...
...
59
207
13
179
160
817
77
243
44
199
262
795
...
3,436
156
210
45
164
416
836
91
250
32
215
199
711
2,185 4,576
3,406
97
290
85
202
224
710
5,030
5-year
avg
19,872
...
20,454
19,496
motor gasoline
Kerosene-type
8,860
...
9,002
8,686
9,008
8,954
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
1,622
3,921
232
1,051
4,186
...
...
...
...
...
1,758
4,224
372
1,651
3,447
1,562
3,813
530
1,281
3,624
1,636
4,001
353
1,562
3,803
1,541
3,720
302
...
...
4250
3250
t
2250
t
Five-year average
for each week
1250
250
M A M J
2017
J A S O N D
J F
2018
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Wednesday, February 28, 2018
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
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
iShMSCIBrazil
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
10.10
104.07
53.41
66.74
28.87
100.83
84.14
76.65
107.28
103.86
66.14
57.93
63.25
273.34
186.46
75.74
61.89
106.77
96.38
73.07
52.30
12.66
117.07
86.18
112.54
104.42
72.79
45.48
70.27
65.26
48.02
–2.23
–0.45
–1.04
–2.30
–1.40
–1.09
–1.60
–1.43
0.04
–0.03
–1.06
–1.36
–1.08
–1.14
–1.21
–1.83
–1.13
0.27
–1.05
–0.83
–0.81
0.08
0.19
–0.15
–0.21
0.27
–1.15
–1.75
–0.94
–0.65
–1.44
–6.4
5.5
–6.1
–7.6
3.4
–0.2
1.8
1.3
–1.8
–0.7
0.1
1.8
0.3
1.7
–1.7
–1.4
1.2
–2.3
–2.2
0.1
–0.9
1.2
–3.7
–1.2
–3.1
–2.0
1.0
12.4
–0.1
1.2
1.9
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS Div
SchwabUS LC
SPDR DJIA Tr
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
SHV
TIP
SHY
IEF
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHD
SCHX
DIA
43.64
61.07
108.08
108.61
140.29
150.85
122.80
188.42
150.35
120.94
160.20
207.05
86.58
216.39
160.30
112.24
37.53
110.29
111.92
83.44
102.17
123.38
101.64
167.21
46.64
23.10
36.21
125.00
33.82
65.36
50.49
64.82
250.20
–0.64
–0.88
–1.83
0.10
–0.88
–1.07
–1.27
–1.39
–1.58
–1.75
–1.09
–0.92
–1.06
–0.99
–0.89
–1.34
0.13
...
0.14
0.02
0.24
–0.80
0.04
–0.64
–1.00
–0.09
–0.08
–0.10
–1.08
–1.15
–1.27
–1.10
–1.48
0.6
1.9
1.2
–1.9
4.2
1.5
–1.2
0.9
–1.4
–3.8
1.3
–0.5
–2.9
0.3
4.9
–1.8
–1.4
0.0
–1.9
–0.5
–3.2
2.3
0.1
7.4
–2.3
0.3
–1.4
1.1
–0.7
1.3
–1.3
1.6
1.1
Other metals
LBMA Platinum Price PM
*994.0
Platinum,Engelhard industrial
982.0
Platinum,Engelhard fabricated
1082.0
Palladium,Engelhard industrial
1046.0
Palladium,Engelhard fabricated
1146.0
Aluminum, LME, $ per metric ton
*2172.5
Copper,Comex spot
3.1075
Iron Ore, 62% Fe CFR China-s
78.9
Shredded Scrap, US Midwest-s,m
339
Steel, HRC USA, FOB Midwest Mill-s
777
Metals
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
Fibers and Textiles
Gold, per troy oz
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
1321.89
1421.03
1317.85
1462.81
*1332.75
*1325.75
1369.58
1382.75
1382.75
1595.79
1293.83
1382.75
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
Grains and Feeds
n.a.
108
3.5550
109.7
477.3
313
95
250
2.9525
25.50
8.6513
398.70
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
SoybeanMeal,Cent IL,rail,ton48%-u
Silver, troy oz.
16.4500
19.7400
16.4350
20.5440
£11.8800
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6200
0.8193
*91.80
65.500
n.a.
SPDR S&PMdCpTr
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
VangdRealEst
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
Closing Chg YTD
Symbol Price (%) (%)
MDY
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
200.13
194.06
0.9100
2.1775
147.00
153.00
67.25
n.a.
1.2043
1.4003
1.4350
16.15
n.a.
66.88
n.a.
0.9481
n.a.
170.00
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
28.0000
0.2225
n.a.
0.3058
0.2525
n.a.
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 2/27
Source: WSJ Market Data Group
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
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
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
-2.1
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1903.38
Total
return
close
3.160 2.380 3.180
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
1951.20
-1.9
Mortgage-Backed
1915.16
-1.9
Ginnie Mae (GNMA) 3.390 2.630 3.390
3.390 2.660 3.400
2727.38
-2.6
U.S. Corporate
3.710 3.030 3.730
1144.63
-1.8
Fannie mae (FNMA) 3.380 2.670 3.400
2579.12
-1.6
Intermediate
3.380 2.530 3.390
1763.37
-1.8
Freddie Mac (FHLMC) 3.400 2.680 3.410
Long term
4.410 3.990 4.680
n.a.
n.a.
Muni Master
n.a. n.a. n.a.
555.41
-2.2
Double-A-rated
3.190 2.470 3.210
n.a.
n.a.
7-12 year
n.a. n.a. n.a.
705.35
-2.3
Triple-B-rated
3.970 3.340 3.990
n.a.
n.a.
12-22 year
n.a. n.a. n.a.
n.a.
n.a.
22-plus year
n.a. n.a. n.a.
3753.38 -4.7
High Yield Bonds Merrill Lynch
n.a.
n.a.
High Yield Constrained n.a. n.a. n.a.
n.a.
n.a.
Triple-C-rated
n.a. n.a. n.a.
538.52
-1.0
Global Government
1.600 1.300 1.650
n.a.
n.a.
High Yield 100
n.a. n.a. n.a.
750.20
-0.6
Canada
2.230 1.570 2.340
n.a.
n.a.
Global High Yield Constrained n.a. n.a. n.a.
369.88
-0.2
EMU§
1.220 0.956 1.363
Europe High Yield Constrained n.a. n.a. n.a.
U.S Agency Bloomberg Barclays
706.40
-0.6
France
0.970 0.690 1.210
502.70
-0.9
Germany
0.660 0.210 0.740
Japan
0.380 0.340 0.460
n.a.
n.a.
Global Government J.P. Morgan†
1619.50
-1.1
U.S Agency
2.580 1.690 2.600
289.44
1452.73
-0.6
10-20 years
2.450 1.490 2.470
555.14
-1.0
Netherlands
0.760 0.390 0.830
20-plus years
3.320 2.730 3.410
913.77
-1.8
U.K.
1.690 1.340 1.830
Yankee
3.390 2.610 3.410
n.a.
3261.67 -3.7
-1.8
0.3
n.a.
Emerging Markets **
n.a. n.a. n.a.
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
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
2.250
2.750
Australia 2
2.750
10
0.750
0.000
0.500
0.050
0.100
0.100
2.750
1.450
0
1
U.S. 2 2.266
10 2.867 t
4.500
0.000
Latest(l)-2 -1
l
l
2.008 s
2.794 s
l
l
France 2 -0.453 t
10 0.924 t
l
Germany 2 -0.596 t
10 0.657 t
l
Italy 2 -0.195 t
10 1.975 t
l
l
l
l
Japan 2 -0.159 s
10 0.052 s
l
Spain 2 -0.370 t
10 1.461 t
l
1.750
U.K. 2
4.250
10
0.690 t
1.504 t
Yield (%)
3 4 Previous
2
l
l
l
l
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
Year ago
2.266
2.897
2.112
2.662
1.264
2.394
1.962
2.078
1.814
-25.8
-30.4
55.0
2.743
2.834
2.737
-7.3
-15.4
34.3
-0.429
-0.406
-0.533
0.951
0.907
0.888
-0.580
-0.544
-216.5
0.628
-0.901 -286.2
0.209
-221.0
-284.6
0.678
-221.9
-218.6
-0.181
-0.186
-0.028
-246.1
-244.7
-129.2
1.995
2.002
2.089
-89.2
-90.2
-30.6
-0.161
-0.132
-0.270
-242.5
-242.7
-153.4
0.046
0.075
-0.345
-0.393
-0.261
1.481
1.405
1.539
0.729
0.630
0.086
1.562
1.445
1.151
-271.9
-194.3
0.055 -281.5
-263.6
-269.5
-179.7
-194.7
-150.6
-285.1
-234.0
-261.1
-152.5
-140.6
-141.6
-85.6
-157.6
-153.7
-117.8
-133.5
-124.3
-136.3
Source: Tullett Prebon
in that same company’s share price.
Natural gas,
lower 48 states
Finished
Soybeans,No.1 yllw IL-bp,u
10.1050
Wheat,Spring14%-pro Mnpls-u
7.5675
Wheat,No.2 soft red,St.Louis-bp,u
4.9650
Wheat - Hard - KC (USDA) $ per bu-u 5.0825
Wheat,No.1soft white,Portld,OR-u
5.5750
Investment-grade spreads that tightened the most…
Billions of cubic feet; weekly totals
20,363 19,199
Wednesday
16.4400
12137
Corporate Debt
Natural gas storage
Weekly Demand, 000s barrels per day
0.8096
0.8839
2.610
2.550
2.700
2.090
2.260
2.010
2.490
63.100
12.400
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
2.050
43,068
137,985
12,116
125,869
32,056
248,486
Wednesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
** EMBI Global Index
Imports, 000s barrels per day
Year
ago
Wednesday
Energy
*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 February 23. 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.
Current
Wednesday, February 28, 2018
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
2418.87
Macro & Market Economics
Watching the Gauges: U.S. Supply and Demand
Inventories, 000s barrels
Cash Prices
18,703
Interest Rate Futures
4,934
150,405
376.75 s
384.75 s
69.400
81.475
.47
143
27,112
699
370.50
379.00
April
June
1.10
95
.90 135,729
t
12.82
13.38
.51 456,603
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
May
25.40
25.50
t
25.40
25.40
–.03
3,083
July
26.00
26.25
t
26.00
26.09
.04
2,898
Cotton (ICE-US)-50,000 lbs.; cents per lb.
81.75
81.75
81.50
81.65
–.11
114
March
May
82.27
83.05
81.80
82.93
.68 128,903
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
March
144.80
145.60
143.00
143.40 –2.75
248
May
144.05
145.80
143.20
144.65
.65
8,425
692
352,628
99,105
27,308
4,590
37,612
March
May
Open
interest
Chg
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
10,251
144,721
Agriculture Futures
Oats (CBT)-5,000 bu.; cents per bu.
Settle
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Metal & Petroleum Futures
Corn (CBT)-5,000 bu.; cents per bu.
Contract
High hilo
Low
Open
WSJ.com/commodities
339.26
271.65
91.62
68.17
49.06
21.35
177.34
128.93
161.76
102.83
44.59
47.17
58.64
72.03
54.77
145.86
157.70
84.94
81.51
84.84
124.77
154.89
110.23
73.35
249.34
78.37
78.46
145.77
79.55
54.15
56.91
139.00
74.85
106.39
63.14
57.13
–1.18 –1.8
1.8
–1.01
–1.08 –3.0
6.6
–0.71
–0.69 –6.9
–0.65 –8.1
7.7
–0.66
–1.38 –2.9
0.6
–1.00
0.8
–1.10
–1.04 –0.6
2.7
–1.30
–1.10 –0.9
2.8
–1.33
0.1
–1.17
3.7
–0.88
2.3
–1.51
–1.32 –0.8
0.11 –2.8
0.07 –2.9
1.8
–1.09
0.1
–0.90
–1.14 –1.2
–0.07 –11.6
1.7
–1.11
0.03 –0.9
0.04 –1.1
–1.18 –1.4
0.13 –2.5
0.09 –0.4
0.2
–1.13
1.3
–1.10
0.8
–1.16
0.1
–1.25
–0.52 –0.9
–1.50 –3.7
Maturity
Last week
Stock Performance
Close ($)
% chg
Symbol Coupon (%)
Toyota Motor Credit
Macy's Retail Holdings
Bank of Nova Scotia
Barclays
TOYOTA
M
BNS
BACR
2.700 Jan. 11, ’23
3.625
June 1, ’24
4.375 Jan. 13, ’21
6.625 Sept. 15, ’49
28
176
44
122
–16
–15
–12
–11
n.a.
n.a.
n.a.
150
...
…
61.96
...
...
…
–0.91
...
Target
Walgreens Boots Alliance
Chevron
Metropolitan Life Global Funding I
TGT
WBA
CVX
MET
3.900
3.450
2.100
2.000
90
125
24
52
–11
–10
–8
–8
94
131
43
54
75.41
68.89
111.92
…
–0.21
–0.36
–1.49
…
Nov. 15, ’47
June 1, ’26
May 16, ’21
April 14, ’20
Current
Spread*, in basis points
One-day change
Issuer
…And spreads that widened the most
Mitsubishi UFJ Financial
General Electric
Albemarle
Bank of America
MUFG
GE
ALB
BAC
2.998
5.000
5.450
4.125
Feb. 22, ’22
Jan. 21, ’49
Dec. 1, ’44
Jan. 22, ’24
76
229
167
86
20
17
15
14
62
187
n.a.
n.a.
...
14.11
100.43
32.10
...
–2.69
–9.98
–0.71
Huntington National Bank
KeyBank NA
Wells Fargo
Comcast
HBAN
KEY
WFC
CMCSA
2.500
Aug. 7, ’22
2.250 March 16, ’20
3.584 May 22, ’28
2.750 March 1, ’23
75
59
109
63
14
14
13
12
n.a.
46
98
46
…
…
58.41
36.21
…
…
–1.35
–1.23
High-yield issues with the biggest price increases…
Issuer
Symbol
Coupon (%)
Maturity
RR Donnelley & Sons
Delek Logistics Partners
Intelsat Luxembourg S.A.
Grinding Media
RRD
DK
INTEL
MCGRND
7.875 March 15, ’21
6.750 May 15, ’25
8.125
June 1, ’23
7.375 Dec. 15, ’23
Aleris International
Gartner
Rite Aid
Charter Communications Operating
ARS
IT
RAD
CHTR
7.875
5.125
7.700
5.375
Nov. 1, ’20
April 1, ’25
Feb. 15, ’27
May 1, ’47
Bond Price as % of face value
Current
One-day change
Last week
Stock Performance
Close ($)
% chg
105.625
102.250
53.500
106.000
1.72
1.50
1.25
1.00
104.000
n.a.
45.250
105.000
7.54
…
...
...
8.02
…
...
...
100.000
102.750
93.063
99.220
0.90
0.88
0.81
0.81
99.375
101.658
95.000
98.028
...
113.41
1.97
…
...
–2.17
–2.96
…
68.221
92.738
24.000
75.250
…
…
...
2.93
…
…
...
–10.12
95.875
83.250
88.500
85.000
4.44
7.03
…
1.58
–9.20
–23.92
…
–2.47
…And with the biggest price decreases
CHS/Community Health Systems
Ultra Resources
FGI Operating*
Sanchez Energy
CYH
UPL
GUN
SN
Ensco
Frontier Commn
Mallinckrodt International Finance
Windstream Services
ESV
FTR
MNK
WIN
6.875
6.875
7.875
6.125
Feb. 1, ’22
April 15, ’22
May 1, ’20
Jan. 15, ’23
7.750
Feb. 1, ’26
10.500 Sept. 15, ’22
5.750
Aug. 1, ’22
7.750 Oct. 15, ’20
65.000 –5.00
90.250
22.000
74.438
94.000
84.750
88.750
86.000
–2.50
–2.25
–2.06
–2.00
–1.75
–1.75
–1.50
*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.
Thursday, March 1, 2018 | 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.
Stock
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.
Wednesday, February 28, 2018
Stock
Sym Close Chg
A B C
ABB
ABB 24.29 -0.51
AECOM
ACM 35.51 -0.58
AES
AES 10.87 -0.35
Aflac
AFL 88.88 -1.11
t AGNC Invt AGNC 17.94 -0.44
ANGI Homesvcs ANGI 14.79 -0.18
Ansys
ANSS 159.94 -1.40
ASML
ASML 195.39 -2.05
AT&T
T
36.30 -0.57
AbbottLabs ABT 60.33 -0.22
AbbVie
ABBV 115.83 -2.43
s Abiomed
ABMD 268.18 -3.07
Accenture ACN 161.01 -1.54
ActivisionBliz ATVI 73.13 0.52
AcuityBrands AYI 142.58 -2.97
Adient
ADNT 62.06 -1.51
s AdobeSystems ADBE 209.13 0.31
AdvanceAuto AAP 114.25 4.45
AdvMicroDevices AMD 12.11 -0.42
AdvSemiEngg ASX 6.82 -0.03
s Aegon
AEG 6.92 -0.01
AerCap
AER 49.61 -0.81
Aetna
AET 177.06 0.79
AffiliatedMgrs AMG 189.36 -0.89
AgilentTechs A
68.59 -0.41
t AgnicoEagle AEM 38.09 -0.40
AirProducts APD 160.79 -2.82
AkamaiTech AKAM 67.46 -0.78
AlaskaAir ALK 64.50 -0.39
Albemarle ALB 100.43-11.14
Alcoa
AA 44.97 -1.25
AlexandriaRlEst ARE 121.31 0.47
AlexionPharm ALXN 117.45 -0.89
Alibaba
BABA 186.14 -2.12
AlignTech ALGN 262.52 -1.35
Alkermes ALKS 57.08 -0.35
Alleghany Y
606.15 -3.69
Allegion
ALLE 84.11 -2.86
t Allergan
AGN 154.22 -5.69
AllianceData ADS 240.96 -1.43
AlliantEnergy LNT 38.65 -0.15
Allstate
ALL 92.26 -1.75
AllyFinancial ALLY 27.90 0.01
AlnylamPharm ALNY 120.16 -3.13
Alphabet C GOOG 1104.73-13.56
Alphabet A GOOGL 1103.92-13.59
Altaba
AABA 74.85 -1.28
AlticeUSA ATUS 18.20 -0.28
Altria
MO 62.95 -1.05
AlumofChina ACH 14.70 0.18
s Amazon.com AMZN 1512.45 0.47
Ambev
ABEV 6.75 -0.03
Amdocs
DOX 65.79 -0.61
Amerco
UHAL344.00 -4.35
Ameren
AEE 54.30 -0.59
AmericaMovil A AMOV 18.29 -0.65
AmericaMovil AMX 18.36 -0.61
AmerAirlines AAL 54.25 -0.01
AEP
AEP 65.58 -0.37
AmerExpress AXP 97.51 -2.07
AmericanFin AFG 112.80 -1.87
t AIG
AIG 57.34 -0.89
AmerTowerREIT AMT 139.33 -1.37
AmerWaterWorks AWK 79.36 -0.60
Ameriprise AMP 156.44 -3.33
AmerisourceBrgn ABC 95.16 -2.48
Ametek
AME 75.74 -1.94
Amgen
AMGN 183.77 -2.02
Amphenol APH 91.39 -0.55
AnadarkoPetrol APC 57.04 -1.43
AnalogDevices ADI 90.15 -2.11
Andeavor ANDV 89.62 -3.96
AndeavorLog ANDX 46.48 -1.18
AB InBev BUD 106.18 -0.06
AnnalyCap NLY 10.03 -0.12
AnteroResources AR 18.81 -0.21
Anthem
ANTM 235.38 -1.83
Aon
AON 140.32 -2.14
t Apache
APA 34.15 -0.65
ApartmtInv AIV 38.66 0.23
Net
Sym Close Chg
Stock
Net
ApolloGlbMgmt APO 32.80 0.10
s Apple
AAPL 178.12 -0.27
ApplMaterials AMAT 57.59 -0.05
Aptiv
APTV 91.33 -1.29
AquaAmerica WTR 34.19 -0.32
Aramark
ARMK 41.71 -0.06
ArcelorMittal MT 34.01 -0.75
ArchCapital ACGL 88.24 -0.80
ArcherDaniels ADM 41.52 -0.12
Arconic
ARNC 24.39 -0.35
AristaNetworks ANET 269.74 10.60
ArrowElec ARW 81.58 -0.78
AstraZeneca AZN 33.19 -0.66
Athene
ATH 47.21 -0.84
Atlassian
TEAM 54.29 1.38
AtmosEnergy ATO 80.49 -0.56
Autodesk ADSK 117.47 1.35
Autohome ATHM 78.21 -3.19
Autoliv
ALV 143.44 -2.99
ADP
ADP 115.32 -1.15
AutoZone
AZO 664.72 10.25
Avalonbay AVB 156.02 -0.06
Avangrid
AGR 48.52 -0.21
AveryDennison AVY 118.15 -0.76
AxaltaCoating AXTA 30.80 -0.55
BB&T
BBT 54.35 -0.60
BCE
BCE 43.63 -1.00
BHPBilliton BHP 46.50 -1.29
BHPBilliton BBL 40.82 -1.51
BOK Fin
BOKF 94.45 -0.95
BP
BP 38.86 -0.64
BRF
BRFS 9.19 0.41
BT Group BT 16.64 -0.26
BWX Tech BWXT 62.96 -0.33
Baidu
BIDU 252.34 1.88
BakerHughes BHGE 26.40 -0.60
Ball
BLL 39.95 0.04
BancoBilbaoViz BBVA 8.32 -0.10
BancodeChile BCH 101.86 0.66
BancoMacro BMA 113.11 -0.43
BcoSantChile BSAC 32.65 -0.20
BcoSantMex BSMX 7.07 -0.09
BancoSantander SAN 6.87 -0.13
BanColombia CIB 42.18 -1.48
BankofAmerica BAC 32.10 -0.23
BankofMontreal BMO 76.01 -0.88
BankNY Mellon BK 57.03 -0.96
BkNovaScotia BNS 61.96 -0.57
BankofOzarks OZRK 49.89 -0.88
Barclays
BCS 11.75 0.03
t BarrickGold ABX 11.52 -0.24
BaxterIntl BAX 67.79 -0.90
BectonDicknsn BDX 222.02 -3.03
BeiGene
BGNE 143.47 -7.50
Berkley
WRB 68.38 -1.12
BerkHathwy B BRK.B 207.20 -2.46
BerkHathwy A BRK.A 310250-4095.00
BerryGlobal BERY 54.40 -0.50
BestBuy
BBY 72.44 0.95
s Bio-RadLab A BIO 270.04 16.04
Biogen
BIIB 288.99 -1.11
BioMarinPharm BMRN 81.17 -1.84
Bioverativ BIVV 104.68 -0.01
BlackKnight BKI 47.65 -0.30
BlackBerry BB 12.14 -0.21
BlackRock BLK 549.43 -3.34
Blackstone BX 34.00 -0.20
s BlueBuffaloPet BUFF 40.06 0.05
bluebirdbio BLUE 201.00 -2.15
s Boeing
BA 362.21 -2.43
s BookingHldgs BKNG 2034.04129.03
BorgWarner BWA 49.08 -0.84
BostonProps BXP 118.87 -0.64
BostonSci BSX 27.26 -0.19
Braskem
BAK 28.48 -0.21
BrightHorizons BFAM 95.57 -0.55
BrighthouseFin BHF 54.27 -1.34
Bristol-Myers BMY 66.20 -1.64
t BritishAmTob BTI 59.06 -1.76
Broadcom AVGO 246.46 -5.35
BroadridgeFinl BR 100.38 -0.43
BrookfieldMgt BAM 38.72 -0.78
BrookfieldInfr BIP 40.34 -0.01
Stock
Net
Sym Close Chg
s Brown&Brown BRO 52.64
Brown-Forman A BF.A 68.00
s Brown-Forman B BF.B 69.79
BuckeyePtrs BPL 44.80
Bunge
BG 75.43
BurlingtonStrs BURL 122.64
CA
CA 35.10
CBD Pao
CBD 21.10
s CBRE Group CBG 46.75
CBS A
CBS.A 52.76
CBS B
CBS 52.97
CDK Global CDK 68.68
CDW
CDW 72.93
CF Industries CF 41.24
s CGI Group GIB 58.34
CH Robinson CHRW 93.36
CIT Group CIT 53.05
CME Group CME 166.16
CMS Energy CMS 42.45
CNA Fin
CNA 51.06
CNOOC
CEO 142.50
CPFLEnergia CPL 14.75
CRH
CRH 33.10
CSRA
CSRA 40.53
CSX
CSX 53.72
CVS Health CVS 67.73
CabotOil
COG 24.16
CadenceDesign CDNS 38.77
CaesarsEnt CZR 12.70
CamdenProperty CPT 79.71
CampbellSoup CPB 43.05
CIBC
CM 91.25
CanNtlRlwy CNI 77.37
CanNaturalRes CNQ 31.46
CanPacRlwy CP 178.63
Canon
CAJ 38.12
CapitalOne COF 97.93
CardinalHealth CAH 69.21
Carlisle
CSL 102.91
Carlyle
CG 22.85
CarMax
KMX 61.92
Carnival
CCL 66.91
Carnival
CUK 66.70
Caterpillar CAT 154.63
Cavium
CAVM 89.04
CboeGlobalMkts CBOE 112.01
Celanese A CE 100.86
t Celgene
CELG 87.12
t Cemex
CX
6.55
CenovusEnergy CVE 7.30
Centene
CNC 101.42
CenterPointEner CNP 27.05
CentraisElBras EBR 7.51
CenturyLink CTL 17.67
Cerner
CERN 64.16
CharterComms CHTR 341.93
CheckPoint CHKP 103.89
Chemours CC 47.51
CheniereEnergy LNG 52.52
CheniereEnerPtrs CQP 29.32
CheniereEnHldgs CQH 26.89
Chevron
CVX 111.92
ChinaEastrnAir CEA 42.31
ChinaLifeIns LFC 14.66
ChinaLodging HTHT 151.90
t ChinaMobile CHL 46.49
ChinaPetrol SNP 79.10
ChinaSoAirlines ZNH 66.11
t ChinaTelecom CHA 43.41
ChinaUnicom CHU 12.76
Chipotle
CMG 318.41
Chubb
CB 141.92
ChunghwaTel CHT 37.01
Church&Dwight CHD 49.19
Cigna
CI 195.89
CimarexEnergy XEC 96.09
CincinnatiFin CINF 74.59
s Cintas
CTAS 170.66
s CiscoSystems CSCO 44.78
Citigroup
C
75.49
CitizensFin CFG 43.49
CitrixSystems CTXS 92.00
Clorox
CLX 129.08
-0.59
-0.29
-0.08
-0.87
0.60
1.80
-0.15
0.03
-0.32
-1.16
-1.18
-0.42
-0.56
-0.53 t DISH Network DISH 41.69
-0.27 DTE Energy DTE 100.78
-0.11 DXC Tech DXC 102.54
-0.93 Danaher
DHR 97.78
-0.53 Darden
DRI 92.19
-0.30 DaVita
DVA 72.02
-0.59 Deere
DE 160.87
-3.16 DellTechs
DVMT 74.29
-0.12 DeltaAir
DAL 53.90
-0.65 DentsplySirona XRAY 56.06
... DeutscheBank DB 15.94
-1.18 DevonEnergy DVN 30.67
-0.52 Diageo
DEO 135.64
-0.08 DiamondbkEner FANG 124.64
-0.62 DigitalRealty DLR 100.64
-0.10 DiscoverFinSvcs DFS 78.83
0.06 DiscovComm C DISCK 22.98
-0.89 DiscovComm A DISCA 24.32
-2.18 Disney
DIS 103.16
-1.98 DolbyLab
DLB 64.55
-0.97 DollarGeneral DG 94.59
-5.79 DollarTree DLTR 102.64
-0.06 DominionEner D
74.07
-1.32 Domino's
DPZ 222.41
-0.83 Donaldson DCI 47.46
-0.60 DouglasEmmett DEI 35.75
-0.25 Dover
DOV 100.10
-0.12 DowDuPont DWDP 70.30
-0.58 DrPepperSnap DPS 116.25
-0.56 DukeEnergy DUK 75.34
-6.63 DukeRealty DRE 24.77
0.21 ENI
E
33.17
1.82 EOG Rscs
EOG 101.42
-1.97 EPAM Systems EPAM 113.12
-8.66 EQT
EQT 50.31
-0.18 E*TRADE
ETFC 52.23
-0.35 EastWestBncp EWBC 65.55
-0.95 EastmanChem EMN 101.08
-0.20 Eaton
ETN 80.70
-0.10 EatonVance EV 52.93
-0.41 eBay
EBAY 42.86
0.21 Ecolab
ECL 130.45
-9.29 Ecopetrol
EC 17.51
0.20 EdisonInt
EIX 60.59
-1.66 EdwardsLife EW 133.67
-2.15 ElbitSystems ESLT 144.01
-0.40 ElectronicArts EA 123.70
-0.26 EmersonElec EMR 71.06
-1.69 EnbridgeEnPtrs EEP 12.51
0.47 t Enbridge
ENB 31.82
-0.21 Encana
ECA 10.50
0.72 EnelAmericas ENIA 11.42
-0.48 EnelChile
ENIC 6.12
-2.21 EnelGenChile EOCC 28.20
0.41 EnergyTransferEq ETE 15.50
-0.47 EnergyTransfer ETP 18.21
-0.05 Entergy
ETR 75.82
-0.74 EnterpriseProd EPD 25.42
-2.27 Equifax
EFX 113.00
-0.22 Equinix
EQIX 392.10
-0.28 EquityLife ELS 84.61
-0.96 EquityResdntl EQR 56.23
-1.83 Ericsson
ERIC 6.62
-1.29 EssexProp ESS 223.83
-0.34 EsteeLauder EL 138.44
-0.26 EverestRe RE 240.24
-0.89 EversourceEner ES 57.00
-0.26 Exelixis
EXEL 25.80
-0.37 Exelon
EXC 37.04
-1.11 Expedia
EXPE 105.17
D E F
New Highs and Lows | WSJ.com/newhighs
Wednesday, February 28, 2018
52-Wk %
Sym Hi/Lo Chg Stock
Highs
AAON
AAON 39.20 -4.9
Abiomed
ABMD 274.40 -1.1
AdobeSystems ADBE 213.44 0.1
7.03 -0.1
Aegon
AEG
5.60 2.1
Agenus
AGEN
5.25 9.4
AlliedHealthcare AHPI
Amazon.com AMZN1528.70 ...
32.35 21.5
AmericanPubEdu APEI
Apple
AAPL 180.62 -0.2
29.20 1.4
Apptio
APTI
AxonEnterprise AAXN 36.30 27.8
15.76 1.8
Bancorp34
BCTF
77.31 1.6
BarrettBus
BBSI
279.59 6.3
Bio-RadLab A BIO
BisonCapAcqnRt BCACR 0.50 6.9
44.71 1.9
BlackLine
BL
BlueBuffaloPet BUFF 40.15 0.1
371.60 -0.7
Boeing
BA
27.84 0.7
BoingoWireless WIFI
BookingHldgs BKNG 2087.34 6.8
24.50 0.2
Box
BOX
53.87 -1.1
Brown&Brown BRO
70.96 -0.1
Brown-Forman B BF.B
18.80 -2.7
CBIZ
CBZ
47.81 -0.7
CBRE Group
CBG
59.43 -0.5
CGI Group
GIB
16.83 0.9
CNX Resources CNX
CantelMedical CMD 119.78 -1.8
CasaSystems CASA 24.24 0.8
Cintas
CTAS 172.91 -0.2
CiscoSystems CSCO 45.89 -0.6
9.85 2.1
Codexis
CDXS
11.94 -1.7
SABESP
SBS
85.40 -1.6
Dillard's
DDS
76.68 0.3
DineEquity
DIN
DouglasDynamics PLOW 45.30 1.1
D&B
DNB 127.66 -0.2
EmmisComm EMMS 4.21 0.5
EncoreWire
WIRE 55.00 -0.7
Etsy
ETSY 26.23 20.4
Exponent
EXPO 80.95 -0.9
Fanhua
FANH 33.70 1.6
FirstSavingsFin FSFG 67.70 2.3
Fortinet
FTNT 51.00 1.0
FosterLB
FSTR 30.30 -11.5
84.30 0.7
FoundationMed FMI
5.31 -1.8
Gerdau
GGB
GlobalPayments GPN 115.47 -0.7
GreeneCnty
GCBC 37.00 1.1
GuarantyBcshrs GNTY 37.36 5.8
72.42 -0.1
Haemonetic
HAE
58.28 2.4
HealthEquity HQY
Heico A
HEI.A 75.55 3.6
52-Wk %
Sym Hi/Lo Chg Stock
Heico
HEI
Herbalife
HLF
HighwayHldgs HIHO
ICF Intl
ICFI
JunoTherap
JUNO
LivaNova
LIVN
Macrogenics
MGNX
MammothEnergy TUSK
McGrathRentCorp MGRC
MercadoLibre MELI
Microsemi
MSCC
NamTaiProperty NTP
NatlInstruments NATI
NewMediaInvt NEWM
NewRelic
NEWR
Okta
OKTA
OnAssignment ASGN
PaycomSoftware PAYC
Pearson
PSO
Progressive
PGR
R1RCM
RCM
Rapid7
RPD
RealPage
RP
S&P Global
SPGI
SailPointTechs SAIL
Salesforce.com CRM
SchulmanA
SHLM
ServiceNow
NOW
SorrentoTherap SRNE
StarsGroup
TSG
StellarAcqnIII STLRU
StellarAcqnIIIWt STLRW
StellarAcqnIII STLR
SterlingBancorp SBT
StudentTransprt STB
TJX
TJX
Talend
TLND
Teladoc
TDOC
TriNet
TNET
Twilio
TWLO
2U
TWOU
Ultralife
ULBI
VandaPharm VNDA
VeevaSystems VEEV
Vericel
VCEL
WW Ent
WWE
XPO Logistics XPO
Xencor
XNCR
Zendesk
ZEN
88.73
95.93
4.70
59.20
86.83
92.31
25.48
28.85
51.49
399.34
66.34
13.75
51.29
17.69
72.69
39.13
79.71
101.43
10.11
59.36
6.75
27.23
54.95
195.93
22.13
118.15
43.88
165.68
10.05
27.88
11.00
0.75
10.49
14.98
7.51
84.79
48.20
41.00
48.30
35.45
86.73
8.13
19.70
71.05
8.50
38.69
100.45
32.71
43.96
5.4
6.3
-2.7
0.5
0.2
2.5
4.9
2.2
5.6
3.3
0.6
0.7
0.4
7.1
1.1
2.3
-2.7
-0.7
-0.4
-1.6
0.9
3.4
4.7
-0.7
0.8
-0.2
0.7
-1.4
17.8
3.2
3.2
15.1
-0.3
0.1
24.6
6.9
5.8
7.5
13.4
-0.8
-0.9
1.9
-1.6
12.3
-3.0
3.6
0.3
4.1
-0.8
Lows
ACADIA Pharm
ADT
AG Mortgage
AGNC Invt
AZZ
ACAD
ADT
MITT
AGNC
AZZ
24.50 -20.0
10.55 -9.0
16.36 -3.5
17.91 -2.4
40.80 -4.2
52-Wk %
Sym Hi/Lo Chg
ActiniumPharm ATNM
Adtran
ADTN
AegeanMarine ANW
AgnicoEagle
AEM
Aircastle
AYR
Akorn
AKRX
AllerganPfdA AGNpA
Allergan
AGN
AltaMesaRscs AMR
Amedica
AMDA
AIG
AIG
AmerOutdoor AOBC
Amerigas
APU
AnavexLifeSci AVXL
AnnalyCapPfdF NLYpF
AnnalyCapPfdG NLYpG
AnworthMtg ANH
AnworthMtgPfdB ANHpB
Apache
APA
ApolloInv
AINV
AppleHospREIT APLE
AratanaTherap PETX
ArgosTherap
ARGS
Avinger
AVGR
AxovantSciences AXON
B&G Foods
BGS
BancCA PfdC BANCpC
BarrickGold
ABX
BelFuse B
BELFB
BritishAmTob BTI
BrookdaleSrLiving BKD
CSS Industries CSS
CapitalaFinance CPTA
CapitalaFinNts22 CPTAL
CareTrustREIT CTRE
CedarRealtyPfC CDRpC
Celgene
CELG
Cemex
CX
ChinaLending CLDC
ChinaMobile
CHL
ChinaTelecom CHA
CityOfficeREIT CIO
CleanDiesel
CDTI
CleanHarbors CLH
ColonyNorthStar CLNS
CooperT&R
CTB
CrownHoldings CCK
CushingRenFdRt SZCr
CustomersBncpNt CUBS
DISH Network DISH
DiamndrckHspty DRH
DominionEnerUn DCUD
DonnelleyFin
DFIN
DynagasLNG DLNG
DynexCapital DX
elfBeauty
ELF
0.42 -4.4
15.25 2.0
2.25 -8.0
38.05 -1.0
19.42 -0.8
16.79 -9.2
541.23 -3.8
153.26 -3.6
7.22 -1.5
2.00 2.9
57.34 -1.5
8.87 -3.2
41.83 -2.5
2.25 1.7
24.67 0.2
23.53 0.4
4.55 -1.1
24.60 -0.8
34.04 -1.9
5.24 -1.5
16.95 -0.6
3.72 -5.8
1.27 -2.2
1.10 -11.2
1.41 -1.4
27.50 -11.2
25.47 0.6
11.51 -2.0
17.20 -3.1
59.04 -2.9
6.49 -4.1
18.41 -2.1
6.88 0.7
24.13 -0.6
13.18 -7.3
21.25 -1.2
87.11 -9.0
6.45 -2.7
1.80 -10.9
46.48 -1.0
43.40 -1.1
10.03 -1.3
1.14 -5.7
47.30 -0.2
7.72 -1.3
31.20 -3.8
49.84 -1.6
0.38 2.4
25.28 ...
41.67 -4.5
10.11 -1.1
48.48 -0.7
17.25 -13.5
10.12 0.1
6.02 -2.9
17.76 -9.3
EP Energy
EPE
EPR PropPfdG EPRpG
EQT GP
EQGP
EasterlyGovtProp DEA
EllingtonFin
EFC
EmpireStateReal250 FISK
EmpireStateReal60 OGCP
Enbridge
ENB
EnLinkMid
ENLC
EnzoBiochem ENZ
Essendant
ESND
FFBW
FFBW
FibrocellScience FCSC
FlexShopper
FPAY
FlyLeasing
FLY
ForestCIty A
FCE.A
Frank'sIntl
FI
FutureFuel
FF
GP Strategies GPX
GeospaceTech GEOS
GlobalMedREIT GMRE
GlobalNetLease GNL
GolarLNGPartners GMLP
GoldmanSachsBDC GSBD
GovtPropIncoTr GOV
GramercyProperty GPT
GrupoTelevisa TV
HCP
HCP
HealthcareRealty HR
HealthcareAmer HTA
HeatBiologics HTBX
HershaHospitality HT
HospitalityProp HPT
HoughtonMifflin HMHC
ImmunePharma IMNP
Inpixon
INPX
InspiredEnt
INSE
InspireMD
NSPR
Intevac
IVAC
InvRlEst
IRET
iPass
IPAS
IronMountain IRM
JamesRiver
JRVR
KCAPFinancial KCAP
KinderMorgan KMI
KlondexMines KLDX
KraftHeinz
KHC
LTC Properties LTC
LendingClub
LC
LexingtonRealty LXP
LibertyTax
TAX
LifetimeBrands LCUT
MGE Energy
MGEE
Mack-Cali
CLI
MagellanMid MMP
MaidenNts43 MHNC
MaidenHldgsPfdC MHpC
MaidenNts46 MHLA
MaidenHldg6.7%PfdD MHpD
MaidenHldgsPfdA MHpA
MedEquitiesRlty MRT
MeridianWaste MRDN
MicronetEnertecWt MICTW
MotorcarParts MPAA
MTechAcqn
MTEC
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Fund
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. t-Footnotes p and r apply. NA-Not available due to
incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NNFund not tracked. NS-Fund didn’t exist at start of period.
Fund
American Century Inv
Ultra
46.16
American Funds Cl A
AmcpA p
33.07
40.88
AMutlA p
BalA p
27.10
12.60
BondA p
CapIBA p
61.77
52.19
CapWGrA
EupacA p
57.21
63.25
FdInvA p
GwthA p
52.12
10.29
HI TrA p
41.18
ICAA p
23.13
IncoA p
44.90
N PerA p
47.53
NEcoA p
68.23
NwWrldA
56.46
SmCpA p
TxExA p
12.79
46.04
WshA p
Baird Funds
10.61
AggBdInst
10.96
CorBdInst
BlackRock Funds A
19.89
GlblAlloc p
BlackRock Funds Inst
23.03
EqtyDivd
GlblAlloc
20.01
7.72
HiYldBd
StratIncOpptyIns 9.99
-0.39
-0.30
-0.49
-0.19
+0.02
-0.54
-0.64
-0.64
-0.80
-0.51
...
-0.53
-0.18
-0.43
-0.37
-0.67
-0.56
...
-0.58
+0.02
+0.01
...
...
...
...
-0.01
Bridge Builder Trust
NA
...
6.3 CoreBond
Dimensional Fds
10.79
...
5.0 5GlbFxdInc
32.36 -0.46
0.2 EmgMktVa
-0.2 EmMktCorEq 23.73 -0.29
14.52 -0.15
-1.9 IntlCoreEq
20.47 -0.27
-1.7 IntlVal
21.34 -0.17
2.1 IntSmCo
22.80 -0.21
1.8 IntSmVa
23.03 -0.26
1.7 US CoreEq1
21.63 -0.27
5.2 US CoreEq2
35.08 -0.58
0.1 US Small
2.0 US SmCpVal 36.69 -0.66
24.20 -0.40
-1.0 US TgdVal
39.09 -0.55
4.0 USLgVa
6.5 Dodge & Cox
107.65 -1.00
2.0 Balanced
13.94 -0.20
1.2 GblStock
13.61 +0.01
-1.5 Income
46.63 -0.72
0.9 Intl Stk
206.83 -2.98
Stock
-2.0 DoubleLine Funds
10.45 -0.02
-1.9 TotRetBdI
Edgewood Growth Instituti
1.0 EdgewoodGrInst 31.88 -0.23
Federated Instl
5.70 -0.07
1.1 StraValDivIS
1.0 Fidelity
95.16 -1.05
-0.2 500IdxInst
0.8 500IdxInstPrem 95.15 -1.06
Net YTD
NAV Chg % Ret
500IdxPrem 95.15
NA ExtMktIdxPrem r 61.70
IntlIdxPrem r 43.09
-0.7 SAIUSLgCpIndxFd 14.54
3.7 TMktIdxF r
77.44
2.2 TMktIdxPrem 77.44
-0.1 USBdIdxInstPrem 11.30
-0.1 Fidelity Advisor I
0.3 NwInsghtI
32.90
-0.7 Fidelity Freedom
1.1 FF2020
16.62
0.3 FF2025
14.47
-2.4 FF2030
18.20
-3.2 Freedom2020 K 16.60
-2.8 Freedom2025 K 14.44
-0.1 Freedom2030 K 18.17
Freedom2035 K 15.39
0.6 Freedom2040 K 10.81
0.6 Fidelity Invest
-1.1 Balanc
24.02
0.7 BluCh
93.13
1.6 Contra
128.80
128.74
ContraK
-1.1 CpInc r
10.27
39.92
DivIntl
7.8 GroCo
192.83
192.83
GrowCoK
-6.9 InvGB
7.74
10.98
InvGrBd
1.8 LowP r
54.38
1.8 MagIn
108.79
-1.06 1.8
-0.69 -0.6
-0.53 -0.2
-0.17 1.8
-0.87 1.4
-0.86 1.4
+0.02 -2.1
-0.31
4.9
-0.11
-0.10
-0.15
-0.10
-0.10
-0.16
-0.15
-0.11
0.3
0.5
0.8
0.3
0.4
0.8
1.2
1.1
-0.16
-0.78
-1.15
-1.15
-0.03
-0.51
-1.84
-1.83
+0.01
+0.01
-0.48
-1.30
1.2
6.1
6.8
6.8
0.3
-0.2
7.9
8.0
-1.9
-2.0
-0.3
4.0
Net
Sym Close Chg
Stock
-0.56 HuanengPower HNP 24.44
HUBB 131.05
-3.19 Hubbell
HUM 271.82
0.17 Humana
JBHT 118.57
-1.76 JBHunt
-2.32 HuntingtonBcshs HBAN 15.70
-4.11 HuntingIngalls HII 262.01
-3.14 Huntsman HUN 32.27
77.27
-1.04 HyattHotels H
-0.63 IAC/InterActive IAC 148.91
9.50
0.46 ICICI Bank IBN
IDXX 187.23
-2.33 IdexxLab
-1.80 IHSMarkit INFO 47.05
-0.25 ING Groep ING 17.58
IVZ 32.54
-0.32 Invesco
-0.30 IPG Photonics IPGP 245.64
IQV 98.33
-1.26 IQVIA
-0.21 IRSA Prop IRCP 47.54
-0.06 IcahnEnterprises IEP 54.58
ICLR 113.31
-0.76 Icon
IEX 136.80
0.13 IDEX
-0.28 IllinoisToolWks ITW 161.44
ILMN 228.02
-1.77 Illumina
-0.63 ImperialOil IMO 27.07
INCY 85.16
-0.57 Incyte
INFY 17.66
-0.82 Infosys
88.80
-1.39 Ingersoll-Rand IR
INGR 130.64
0.08 Ingredion
INTC 49.29
0.06 Intel
-1.62 InteractiveBrkrs IBKR 69.40
ICE 73.08
-0.69 ICE
-0.55 InterContinentl IHG 64.79
IBM
IBM 155.83
-1.63
... IntlFlavors IFF 141.25
IntlPaper
IP
59.59
-0.19
0.52 Interpublic IPG 23.40
Intuit
INTU
166.86
-0.04
-0.96 IntuitiveSurgical ISRG 426.45
-1.86 InvitatHomes INVH 21.75
-0.99 IonisPharma IONS 52.82
-0.49 t IronMountain IRM 31.46
4.23
-0.49 IsraelChemicals ICL
-0.10 ItauUnibanco ITUB 15.57
J K L
G H I
1.50 -4.4
22.77 -0.6
23.28 -2.8
19.04 -0.8
14.12 -1.7
16.87 -1.4
16.61 -0.1
31.81 -3.5
14.60 -1.7
6.33 -4.1
7.94 -5.5
10.65 -0.9
0.51 -0.9
2.70 -1.2
11.54 -2.7
21.09 -0.9
5.22 -15.5
11.97 -2.4
21.95 -2.2
10.20 -5.7
6.50 -4.1
15.63 -0.2
18.49 -7.8
19.24 -4.7
13.70 -2.0
21.65 -1.1
17.01 -3.2
21.62 -0.5
26.54 -0.7
24.84 -0.9
2.45 -6.7
16.79 -0.9
25.37 -1.1
6.73 -2.9
0.32 -3.7
1.15 -9.2
5.30 -3.6
2.38 -8.1
6.00 -3.2
4.61 -1.7
0.34 8.9
30.95 1.3
32.69 -2.2
2.91 -4.8
16.19 -2.6
1.32 -2.9
67.03 -1.2
36.90 -1.7
3.09 -1.6
7.95 -1.5
7.75 -3.1
13.90 -4.1
52.40 -2.9
16.88 -1.6
62.36 -2.3
18.64 -5.3
16.73 -7.2
17.50 -5.4
14.85 -9.1
19.11 -5.8
9.67 -2.0
0.64 -9.7
0.04 -25.9
20.32 -2.7
9.58 -0.4
JD 47.15
0.11 JD.com
-0.87 JPMorganChase JPM 115.50
0.23 JackHenry JKHY 117.30
0.36 JacobsEngg JEC 61.06
-0.67 JamesHardie JHX 17.70
-0.98 JanusHenderson JHG 35.34
-2.52 JazzPharma JAZZ 144.80
JBLU 21.05
-1.44 JetBlue
JNJ 129.88
-0.39 J&J
-0.23 JohnsonControls JCI 36.87
-0.82 JonesLang JLL 160.61
0.05 JuniperNetworks JNPR 25.66
-0.41 s JunoTherap JUNO 86.77
-0.72 KAR Auction KAR 54.08
KB 58.61
-0.09 KB Fin
KKR 21.46
-0.28 KKR
KLA
Tencor
KLAC 113.31
-1.63
KT 13.28
-0.20 KT
KSCitySouthern
KSU 103.04
-0.81
K
66.20
-0.55 Kellogg
KeyCorp
KEY
21.13
-0.02
-4.25 KeysightTechs KEYS 47.01
KilroyRealty
KRC
68.10
-0.55
-0.55 KimberlyClark KMB 110.92
-3.23 KimcoRealty KIM 14.96
-0.13 t KinderMorgan KMI 16.20
-0.56 Knight-Swift KNX 48.16
KSS 66.09
0.49 Kohl's
-0.25 KoninklijkePhil PHG 38.06
0.28 KoreaElcPwr KEP 15.04
-0.56 t KraftHeinz KHC 67.05
KR 27.12
-1.44 Kroger
KYO 58.81
-1.96 Kyocera
-0.11 LATAMAirlines LTM 16.26
LB 49.33
-1.38 L Brands
-0.14 LG Display LPL 13.60
LN 40.02
-0.13 LINE
LKQ 39.48
-0.53 LKQ
-1.20 LPL Financial LPLA 64.27
L3
Tech
LLL 207.55
-0.55
-0.16 LabCpAm LH 172.70
LamResearch
LRCX 191.86
-2.87
-0.96 LamarAdv LAMR 66.47
LambWeston
LW 54.09
-1.67
2.50 LasVegasSands LVS 72.81
Lazard
LAZ
53.97
4.39
LEA 186.57
-1.98 Lear
Leggett&Platt
LEG
43.46
-1.02
LDOS 63.31
5.46 Leidos
Lennar
A
LEN
56.58
0.07
LEN.B 45.36
-1.05 Lennar B
-0.23 LennoxIntl LII 204.63
-0.04 LeucadiaNatl LUK 23.99
0.95 LibertyBroadbandC LBRDK 87.88
-1.57 LibertyBroadbandA LBRDA 87.38
-0.73 LibertyGlobal A LBTYA 31.14
-2.71 LibertyGlobal C LBTYK 30.03
-0.49 LibertyQVC A QVCA 28.87
-2.81 LibertyVenturesA LVNTA 53.52
-0.29 LibertyFormOne A FWONA 31.57
-1.45 LibertyFormOne C FWONK 32.93
0.07 LibertyBraves A BATRA 22.92
LibertyBraves C BATRK 22.96
LibertySirius C LSXMK 41.76
LibertySirius A LSXMA 41.95
52-Wk %
Sym Hi/Lo Chg LibertyProperty LPT 39.26
EliLilly
LLY 77.02
LABL 62.85 -1.8 LincolnElectric LECO 87.54
Multi-Color
NRG Yield A
NYLD.A
NRG Yield C
NYLD
NextDecade
NEXT
NorthstarRltyEur NRE
NorthwestNatGas NWN
NuSTAREnergy NS
NuSTAR GP
NSH
OPKOHealth
OPK
OfficeDepot
ODP
OutfrontMedia OUT
PCM
PCMI
PDF Solutions PDFS
PICO
PICO
PPL
PPL
PQ Group
PQG
PapaJohn's
PZZA
PA REIT PfdD PEIpD
PA Reit Pfd B PEIpB
PhysiciansRealty DOC
Procter&Gamble PG
QuanexBldg
NX
RAIT Fin PfdA RASpA
RAIT Fin PfdC RASpC
RandgoldRscs GOLD
Rent-A-Center RCII
RexEnergy
REXX
RexahnPharm RNN
RigNet
RNET
RXiPharm
RXII
SellasLifeSci
SLS
SanchezEnergy SN
SandRidgeEnergy SD
ScrippsEW
SSP
Sea
SE
SelectIncomeREIT SIR
ShawComm B SJR
SifcoInd
SIF
SinoGlobalShip SINO
SonomaPharm SNOA
SouthwestGas SWX
SturmRuger
RGR
SummitHotelProp INN
SummitMidstream SMLP
Switch
SWCH
SyntheticBiolog SYN
TESARO
TSRO
TallgrassEnerGP TEGP
TenaxTherap
TENX
TriplePtVent
TPVG
Tupperware
TUP
UMH Prop
UMH
USAutoPartsNtwk PRTS
UltraPetroleum UPL
UnitedFinBncp UBNK
UniversalHealth UHT
VEON
VEON
ValeroEnergyPtrs VLP
Ventas
VTR
WageWorks
WAGE
WashingtonREIT WRE
WeatherfordIntl WFT
Welltower
WELL
WelltowerPfdI WELLpI
WestmorelandCoal WLB
YorkWater
YORW
15.38 -1.9
15.60 -1.6
5.51 0.8
10.09 0.3
52.05 -2.4
21.72 -6.0
11.60 -6.8
3.39 -8.6
2.60 -9.3
20.39 -4.8
7.05 -6.0
11.14 -1.9
11.95 -0.4
28.64 -1.8
13.40 -5.1
54.00 2.4
21.15 -1.0
22.32 0.7
14.34 -2.2
78.50 -2.5
16.70 -3.5
6.72 -10.3
6.55 -9.7
80.66 -1.8
7.47 -0.1
0.90 -3.2
1.59 -5.3
13.25 -5.3
2.78 -6.7
4.78 -2.0
2.92 -10.1
14.05 -5.4
13.66 -8.7
10.56 -10.6
18.12 -1.3
19.32 -2.2
5.00 -2.0
1.85 -9.2
3.50 -14.2
65.75 -3.4
43.00 -6.6
13.13 -2.2
16.70 -3.2
13.75 -5.0
0.35 -5.1
52.20 -10.3
20.13 -1.9
4.42 -6.8
11.50 -1.9
49.00 -3.5
11.67 -0.8
1.95 -1.9
3.50 -10.0
15.59 -1.0
55.25 -2.2
2.85 -2.7
38.53 -1.9
48.30 -1.2
52.35 -2.4
25.27 -0.7
2.60 -7.1
51.85 0.5
54.50 -0.8
0.42 -8.5
28.10 -2.3
Net YTD
NAV Chg % Ret Fund
116.97
OTC
23.73
Puritn
SrsEmrgMkt 22.20
SrsGroCoRetail 17.99
16.23
SrsIntlGrw
SrsIntlVal
10.69
10.42
TotalBond
Data provided by
Wednesday, February 28, 2018
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
Net
Sym Close Chg
Stock
-0.40 ExpeditorsIntl EXPD 64.96
-0.13 ExpressScripts ESRX 75.45
-0.78 ExtraSpaceSt EXR 85.05
0.16 ExxonMobil XOM 75.74
-0.49 F5Networks FFIV 148.52
-0.95 FMC
FMC 78.48
-0.45 Facebook
FB 178.32
-1.39 FactSet
FDS 203.18
-0.88 Fastenal
FAST 54.72
-0.48 FederalRealty FRT 113.94
-0.20 FedEx
FDX 246.41
-0.07 Ferrari
RACE 124.21
-2.29 FiatChrysler FCAU 21.19
-1.52 FibriaCelulose FBR 18.80
-0.77 FidNatlFin FNF 39.93
-2.57 FidNatlInfo FIS 97.18
-1.55 FifthThirdBncp FITB 33.05
-1.66 58.com
WUBA 75.37
-0.63 FirstAmerFin FAF 58.03
-0.86 FirstData
FDC 15.62
-0.25 FirstHorizonNatl FHN 19.05
-1.87 FirstRepBank FRC 92.80
0.80 FirstSolar FSLR 62.85
-0.53 FirstEnergy FE 32.33
-0.31 Fiserv
FISV 143.39
0.08 FleetCorTech FLT 199.93
FLEX 18.10
-0.38 Flex
-0.30 FlirSystems FLIR 49.10
-0.80 Flowserve FLS 42.35
FLR 56.90
-0.50 Fluor
-1.48 FomentoEconMex FMX 92.30
-1.89 FootLocker FL
45.91
-1.56 FordMotor F
10.61
-0.02 t ForestCIty A FCE.A 21.27
s Fortinet
FTNT 50.47
Fortis
FTS 32.66
Fortive
FTV 76.80
-1.95 FortBrandsHome FBHS 60.66
-1.25 Franco-Nevada FNV 70.06
-0.60 FranklinRscs BEN 38.67
-1.79 FreeportMcM FCX 18.60
-0.69 FreseniusMed FMS 52.82
-1.65
-2.71
1.55
0.28 GGP
GGP 21.17
-1.27 Gallagher
AJG 69.11
-0.46 Gaming&Leisure GLPI 33.26
-1.19 Gap
GPS 31.58
-1.39 GardnerDenver GDI 32.01
-1.53 Garmin
GRMN 59.24
0.34 Gartner
IT 113.41
-0.73 GeneralDynamics GD 222.45
-1.77 GeneralElec GE 14.11
-1.72 GeneralMills GIS 50.55
-1.71 GeneralMotors GM 39.35
G
31.37
1.21 Genpact
GNTX 22.71
-0.93 Gentex
-1.29 GenuineParts GPC 91.84
GGB 5.00
-0.19 s Gerdau
GIL 28.95
-4.06 Gildan
-0.74 GileadSciences GILD 78.73
GSK 36.31
-0.07 GSK
-1.84 s GlobalPayments GPN 113.39
GDDY 59.81
-2.06 GoDaddy
GG 12.51
-0.05 Goldcorp
-0.99 GoldmanSachs GS 262.93
GT 28.94
-0.06 Goodyear
GGG 44.35
-0.40 Graco
GWW 261.55
-5.52 Grainger
-1.49 GreatPlainsEner GXP 29.15
Grifols
GRFS 21.80
-1.06
GRUB 99.41
-0.88 GrubHub
GpoAvalAcc
AVAL
8.58
-0.79
-1.23 GpoFinGalicia GGAL 62.94
-1.26 t GrupoTelevisa TV 17.01
-1.32 Guidewire GWRE 80.32
-0.29 HCA Healthcare HCA 99.25
HCP 21.64
-0.64 t HCP
-0.84 HDFC Bank HDB 97.18
-0.26 HD Supply HDS 36.25
HPQ 23.39
-1.56 HP
HSBC 49.63
0.27 HSBC
-2.10 Halliburton HAL 46.42
-2.03 Hanesbrands HBI 19.40
-0.40 HarleyDavidson HOG 45.38
HRS 156.15
-1.17 Harris
-0.32 HartfordFinl HIG 52.85
HAS 95.57
-0.05 Hasbro
HEI.A 72.50
0.03 s Heico A
HEI 85.60
0.05 s Heico
-0.45 Helm&Payne HP 64.55
-0.63 HenrySchein HSIC 66.19
HLF 92.10
-0.22 s Herbalife
HSY 98.26
-0.25 Hershey
HES 45.42
-1.19 Hess
0.89 HewlettPackard HPE 18.59
HXL 67.28
-0.11 Hexcel
HLT 80.79
0.40 Hilton
-0.16 HollyFrontier HFC 42.83
HOLX 38.83
2.00 Hologic
-1.34 HomeDepot HD 182.27
-2.94 HondaMotor HMC 36.09
-0.39 Honeywell HON 151.11
-1.31 HormelFoods HRL 32.46
-0.20 DR Horton DHI 41.90
1.46 HostHotels HST 18.56
52-Wk %
Sym Hi/Lo Chg Stock
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
in the latest session. % CHG-Daily percentage change from the previous trading session.
Stock
Net
Sym Close Chg
Coca-Cola KO 43.22
Coca-Cola Euro CCE 38.02
Coca-Cola Femsa KOF 67.42
Cognex
CGNX 53.71
CognizantTech CTSH 82.02
ColgatePalm CL 68.97
Comcast A CMCSA 36.21
Comerica
CMA 97.22
CommerceBcshrs CBSH 57.77
CommScope COMM 38.71
s SABESP
SBS 11.52
ConagraBrands CAG 36.13
ConchoRscs CXO 150.80
ConocoPhillips COP 54.31
ConEd
ED 74.89
ConstBrands A STZ 215.48
ContinentalRscs CLR 47.51
Cooper
COO 230.52
Copa
CPA 135.97
Copart
CPRT 46.81
Corning
GLW 29.08
CoStar
CSGP 342.13
Costco
COST 190.90
Coty
COTY 19.32
Credicorp
BAP 216.45
CreditAcceptance CACC 314.69
CreditSuisse CS 18.36
CrownCastle CCI 110.06
t CrownHoldings CCK 49.84
Ctrip.com CTRP 45.98
Cullen/Frost CFR 103.99
Cummins
CMI 168.17
CurtissWright CW 134.98
CypressSemi CY 17.47
-0.75 6.5
-0.20 1.3
-0.32 3.7
-0.17 8.2
-0.18 0.5
-0.13
...
+0.01 -1.7
First Eagle Funds
GlbA
58.73 -0.56
FPA Funds
35.27 -0.20
FPACres
FrankTemp/Frank Adv
2.31 -0.01
IncomeAdv
FrankTemp/Franklin A
CA TF A p
7.29
...
2.32 -0.02
IncomeA p
60.57 -0.95
RisDv A p
FrankTemp/Franklin C
2.35 -0.02
Income C t
FrankTemp/Temp A
GlBond A p
11.91 -0.05
27.30 -0.23
Growth A p
FrankTemp/Temp Adv
GlBondAdv p 11.87 -0.04
Harbor Funds
74.89 -0.73
CapApInst
67.13 -0.85
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.98 -0.10
EqIncA
John Hancock Class 1
LSBalncd
15.23 -0.10
LSGwth
16.21 -0.13
John Hancock Instl
23.29 -0.26
DispValMCI
JPMorgan Funds
39.55 -0.40
MdCpVal L
JPMorgan R Class
11.34 +0.02
CoreBond
Lazard Instl
20.70 -0.29
EmgMktEq
Lord Abbett A
...
ShtDurIncmA p 4.21
Lord Abbett F
4.21
...
ShtDurIncm
Metropolitan West
-0.6
1.7
-1.3
-2.1
-1.7
-1.0
-1.8
0.6
0.1
0.6
7.8
-0.6
NA
0.2
0.3
0.8
-0.1
-1.8
-1.7
3.4
-0.3
-0.3
TotRetBd
TotRetBdI
TRBdPlan
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
OReillyAuto ORLY 244.19
OccidentalPetrol OXY 65.60
OldDomFreight ODFL 138.92
Omnicom OMC 76.23
ON Semi
ON 23.92
OpenText OTEX 35.08
Oracle
ORCL 50.67
Orange
ORAN 17.01
OrbitalATK OA 132.06
Orix
IX
88.90
Oshkosh
OSK 78.93
OwensCorning OC 81.30
PG&E
PCG 41.09
PLDT
PHI 28.90
PNC Fin
PNC 157.66
POSCO
PKX 82.24
PPG Ind
PPG 112.44
t PPL
PPL 28.65
PTC
PTC 73.76
PVH
PVH 144.28
Paccar
PCAR 71.59
PackagingCpAm PKG 119.20
PacWestBancorp PACW 52.14
PagSeguroDig PAGS 32.24
PaloAltoNtwks PANW 173.37
ParkerHannifin PH 178.47
ParsleyEnergy PE 25.28
Paychex
PAYX 65.13
s PaycomSoftware PAYC 98.92
PayPal
PYPL 79.41
s Pearson
PSO 9.99
PembinaPipeline PBA 32.13
Pentair
PNR 68.69
People'sUtdFin PBCT 19.14
PepsiCo
PEP 109.73
PerkinElmer PKI 76.34
Perrigo
PRGO 81.46
PetroChina PTR 69.20
PetroleoBrasil PBR 14.04
PetroleoBrasilA PBR.A 13.09
Pfizer
PFE 36.31
PhilipMorris PM 103.55
Phillips66 PSX 90.37
PilgrimPride PPC 25.20
PinnacleFoods PF 53.96
PinnacleWest PNW 76.96
PioneerNatRscs PXD 170.23
PlainsAllAmPipe PAA 21.10
PlainsGP
PAGP 20.80
PolarisIndustries PII 113.99
Praxair
PX 149.75
PrincipalFin PFG 62.33
t Procter&Gamble PG 78.52
s Progressive PGR 57.58
Prologis
PLD 60.68
PrudentialFin PRU 106.32
Prudential PUK 50.27
PublicServiceEnt PEG 48.43
PublicStorage PSA 194.44
PulteGroup PHM 28.07
Qiagen
QGEN 33.70
Qorvo
QRVO 80.71
Qualcomm QCOM 65.00
QuestDiag DGX 103.05
-0.06 LincolnNational LNC 76.17 -2.05
-2.14 LionsGate A LGF.A 28.24 -0.66
-5.10 LionsGate B LGF.B 26.84 -0.74
-2.05 LiveNationEnt LYV 44.80 -2.95
-0.12 LloydsBanking LYG 3.84 -0.05
-0.75 LockheedMartin LMT 352.44 -3.73
-0.99 Loews
L
49.33 -0.85
0.62 LogitechIntl LOGI 39.38 -0.59
-0.19 LogMeIn
LOGM 115.55 -1.15
-0.32 Lowe's
LOW 89.59 -6.20
-0.75 lululemon
LULU 81.10 0.64
0.04 LyondellBasell LYB 108.22 -1.44
-0.30
-0.48
-0.01
-1.24 M&T Bank MTB 189.84 -2.35
-0.48 MGM Resorts MGM 34.23 -0.04
-1.47 MKS Instrum MKSI 111.35 -0.90
MPLX 34.53 -0.66
-0.20 MPLX
MSCI 141.52 -1.32
-2.74 MSCI
MAC 58.94 1.09
-1.80 Macerich
Macy's
M
29.41 1.01
-1.71
-0.53 t MagellanMid MMP 62.46 -1.50
MagnaIntl
MGA
54.97 -1.83
-1.41
0.14 Manpower MAN 118.46 -1.64
ManulifeFin
MFC
19.04 -0.30
-1.28
-0.38 MarathonOil MRO 14.52 -0.48
-0.62 MarathonPetrol MPC 64.06 -1.54
MKL 1112.00-11.09
-0.70 Markel
-0.35 MarketAxess MKTX 202.40 1.39
MAR 141.21 3.09
-0.38 Marriott
-0.72 Marsh&McLen MMC 83.02 -1.29
-1.33 MartinMarietta MLM 203.93 -2.27
-0.57 MarvellTech MRVL 23.49 0.11
MAS 41.12 -0.77
-0.17 Masco
-3.49 Mastercard MA 175.76 -0.17
MatchGroup
MTCH 40.05 -0.02
-4.53
0.23 MaximIntProducts MXIM 60.94 -0.79
McCormick
MKC
106.78 0.19
1.35
0.41 McDonalds MCD 157.74 -1.91
McKesson
MCK
149.23 -4.11
-0.17
-0.47 Medtronic MDT 79.89 -1.35
MelcoResorts MLCO 27.45 -0.07
s MercadoLibre MELI 387.97 12.53
Merck
MRK 54.22 -0.50
0.11 MetLife
MET 46.19 -1.03
-1.86 MettlerToledo MTD 616.22 -9.35
-1.89 MichaelKors KORS 62.93 -0.69
-0.68 MicroFocus MFGP 28.06 -0.37
-0.31 MicrochipTech MCHP 88.93 0.38
0.05 MicronTech MU 48.81 0.23
1.00 s Microsemi MSCC 64.90 0.39
-0.30 Microsoft
MSFT 93.77 -0.43
-1.79 MidAmApt MAA 85.82 0.23
-1.15 Middleby
MIDD 120.25 -7.52
-0.86 MitsubishiUFJ MTU 7.11 -0.07
-0.26 MizuhoFin MFG 3.71 -0.05
0.14 MobileTeleSys MBT 11.96 -0.41
2.09 MohawkInds MHK 239.88 -6.66
-0.59 MolsonCoors B TAP 76.25 -0.33
-0.08 MolsonCoors A TAP.A 79.50 -2.00
-0.15 Momo
MOMO 33.05 -0.43
-0.16 Mondelez MDLZ 43.90 -0.11
-2.81 Monsanto MON 123.37 0.67
-0.93 MonsterBev MNST 63.37 -0.80
-0.03 Moody's
MCO 166.88 -1.49
-0.42 MorganStanley MS 56.02 -0.70
0.49 Mosaic
MOS 26.32 -0.48
-1.42 MotorolaSol MSI 106.15 -0.47
0.11 Mylan
MYL 40.32 -0.79
-0.44 NICE
NICE 96.59 -0.58
-0.33 NRG Energy NRG 25.86 -0.13
1.09 NTTDoCoMo DCM 25.54 -0.03
-0.58 NVR
NVR 2843.17-62.90
-0.16 NXP Semi NXPI 124.66 0.01
-0.82 Nasdaq
NDAQ 80.75 -0.94
-0.15 NationalGrid NGG 51.59 -1.26
-1.08 s NatlInstruments NATI 50.56 0.18
-0.27 NatlOilwell NOV 35.09 -1.17
1.15 NatlRetailProp NNN 37.24 -0.18
-0.12 NektarTherap NKTR 86.56 -3.49
-0.16 NetApp
NTAP 60.55 0.15
0.15 Netease
NTES 293.35 -2.96
-0.92 Netflix
NFLX 291.38 0.77
-4.49 Neurocrine NBIX 84.43 -0.30
-2.64 NewOrientalEduc EDU 91.39 1.29
-1.61 NY CmntyBcp NYCB 13.62 -0.39
-1.67 NewellBrands NWL 25.69 -1.27
-0.30 NewmontMin NEM 38.20 -0.24
-0.23 NewsCorp A NWSA 16.13 -0.25
-0.24 NewsCorp B NWS 16.40 -0.30
-1.80 NextEraEnergy NEE 152.15 0.47
-0.34 Nike
NKE 67.03 -1.00
-1.91 NiSource
NI
23.13 -0.19
-1.08 NobleEnergy NBL 29.83 -0.36
-0.97 Nokia
NOK 5.80 -0.07
-2.94 NomuraHoldings NMR 6.10 -0.09
-0.57 Nordson
NDSN 134.07 -3.47
-1.95 Nordstrom JWN 51.31 0.28
-2.07 NorfolkSouthern NSC 139.08 -3.75
-1.04 NorthernTrust NTRS 105.87 -1.72
-1.07 NorthropGrum NOC 350.04 -3.62
0.57 NorwegCruise NCLH 56.90 0.63
-0.41 Novartis
NVS 83.35 -1.20
-0.92 NovoNordisk NVO 51.48 -1.15
-0.91 Nucor
NUE 65.40 -1.89
-0.74 Nutanix
NTNX 36.45 0.52
-0.65 NVIDIA
NVDA 242.00 -4.06
0.44
0.34
0.01
-1.68 OGE Energy OGE 31.34 -0.24
OKE 56.33 -0.67
-1.99 ONEOK
M N
R S
RELX
RENX 20.54
RELX
RELX 20.66
RPM
RPM 49.77
RalphLauren RL 105.84
t RandgoldRscs GOLD 81.02
RaymondJames RJF 92.71
Raytheon RTN 217.51
RealtyIncome O
49.18
RedHat
RHT 147.40
RegencyCtrs REG 58.11
RegenPharm REGN 320.44
RegionsFin RF 19.41
ReinsGrp
RGA 153.79
RelianceSteel RS 90.17
RepublicSvcs RSG 67.18
ResMed
RMD 95.27
RestaurantBrands QSR 58.59
RioTinto
RIO 54.71
RobertHalf RHI 57.07
Rockwell
ROK 180.80
RockwellCollins COL 137.72
RogersComm B RCI 45.09
Rollins
ROL 50.27
RoperTech ROP 275.09
RossStores ROST 78.09
RoyalBkCanada RY 78.89
RoyalBkScotland RBS 7.45
RoyalCaribbean RCL 126.60
RoyalDutchA RDS.A 63.27
RoyalDutchB RDS.B 64.18
Ryanair
RYAAY 121.26
SAP
SAP 104.50
s S&P Global SPGI 191.80
SBA Comm SBAC 157.27
SEI Investments SEIC 72.83
Sina
SINA 116.93
SINOPEC
SHI 59.64
SK Telecom SKM 24.35
SLGreenRealty SLG 96.92
SS&C Tech SSNC 49.52
SVB Fin
SIVB 248.98
Sabre
SABR 22.97
SageTherap SAGE 161.36
s Salesforce.com CRM 116.25
Sanofi
SNY 39.25
SantanderCons SC 16.35
O P Q
Stock
Net
Sym Close Chg
5.61 Sasol
SSL 34.47
-1.15 Schlumberger SLB 65.64
0.08 SchwabC
SCHW 53.02
-0.71 ScrippsNetworks SNI 89.86
-0.41 Seagate
STX 53.40
-0.42 SealedAir
SEE 42.37
-0.06 SeattleGenetics SGEN 54.00
-0.06 SemicondctrMfg SMI 6.57
0.41 SempraEnergy SRE 108.98
-1.45 SensataTech ST 52.86
-3.62 ServiceCorp SCI 37.43
-2.07 ServiceMaster SERV 51.36
0.86 s ServiceNow NOW 161.01
-0.45 t ShawComm B SJR 19.35
-2.57 SherwinWilliams SHW 401.58
-3.66 ShinhanFin SHG 42.79
-2.87 Shire
SHPG 128.00
-0.52 Shopify
SHOP 138.21
-0.96 SignatureBank SBNY146.19
-3.44 SimonProperty SPG 153.51
0.36 SiriusXM
SIRI 6.28
-1.02 SkechersUSA SKX 40.92
-0.91 Skyworks SWKS 109.25
-0.19 SmithAO
AOS 64.19
0.13 Smith&Nephew SNN 35.47
-3.42 Smucker
SJM 126.30
-0.68 Snap
SNAP 17.32
-0.79 SnapOn
SNA 159.22
-0.70 SOQUIMICH SQM 49.90
-0.05 Sony
SNE 50.46
-0.04 Southern
SO 43.06
-0.92 SoCopper
SCCO 52.73
-1.85 SouthwestAir LUV 57.84
-0.32 SpectraEnerPtrs SEP 39.29
-1.16 SpectrumBrands SPB 98.71
-0.61 SpiritAeroSys SPR 91.29
-0.54 Splunk
SPLK 93.20
-1.01 Sprint
S
5.19
-0.17 Square
SQ 46.05
-0.16 StanleyBlackDck SWK 159.19
-0.49 Starbucks SBUX 57.10
-0.53 StateStreet STT 106.15
-1.75 Statoil
STO 22.63
...
SteelDynamics STLD 46.25
-1.27
STMicroelec STM 22.80
-0.98
Stryker
SYK 162.16
-4.44
SumitomoMits SMFG 8.71
-0.33
SunComms SUI 87.56
-0.53
SunLifeFinancial SLF 41.17
-0.13
SuncorEnergy SU 32.92
-4.25
SunTrustBanks STI 69.84
-1.24
Symantec SYMC 26.29
-2.02
SynchronyFin SYF 36.39
-0.95
Synopsys SNPS 84.67
0.32
SynovusFin SNV 49.30
-2.37
Sysco
SYY 59.65
-0.75
-0.36
1.52
-0.43 TAL Education TAL 37.76
-0.12 TD Ameritrade AMTD 57.50
-0.50 TE Connectivity TEL 103.09
-1.34 Telus
TU 36.10
-1.74 Ternium
TX 34.58
TIM Part
TSU 21.28
s TJX
TJX 82.68
-0.13 T-MobileUS TMUS 60.61
TRowePrice
TROW
111.90
-0.12
-0.65 TableauSftwr DATA 81.67
TaiwanSemi
TSM
43.35
-2.06
-1.51 TakeTwoSoftware TTWO 111.87
Tapestry
TPR
50.91
-0.99
-1.68 TargaResources TRGP 44.65
Target
TGT
75.41
0.03
-0.04 TataMotors TTM 28.02
TechnipFMC
FTI
28.82
0.20
-0.53 TeckRscsB TECK 28.58
-0.21 TelecomArgentina TEO 33.31
9.05
-1.79 TelecomItalia TI
-2.65 TelecomItalia A TI.A 7.70
0.13 TeledyneTech TDY 185.95
TFX 249.83
-0.23 Teleflex
-0.27 TelefonicaBras VIV 15.67
-1.84 Telefonica TEF 9.63
-0.36 TelekmIndonesia TLK 29.03
TS 34.49
-3.80 Tenaris
TER 45.40
0.05 Teradyne
TSLA 343.06
-0.89 Tesla
-0.65 TevaPharm TEVA 18.72
-5.24 TexasInstruments TXN 108.35
TXT 59.85
0.55 Textron
-1.60 ThermoFisherSci TMO 208.58
-0.17 ThomsonReuters TRI 39.39
-2.26 ThorIndustries THO 129.00
MMM 235.51
-0.66 3M
TIF 101.04
-0.72 Tiffany
-1.01 TimeWarner TWX 92.96
TOL 43.83
0.43 Toll Bros
-1.34 Torchmark TMK 85.37
TTC 63.57
-5.93 Toro
-0.53 TorontoDomBk TD 57.97
TOT 56.69
0.28 Total
-0.84 TotalSystem TSS 87.95
-0.28 ToyotaMotor TM 134.60
1.03 TractorSupply TSCO 64.93
-0.14 TransCanada TRP 43.22
1.31 TransDigm TDG 288.31
-0.29 TransUnion TRU 57.07
TRV 139.00
-1.90 Travelers
TRMB 37.93
-0.22 Trimble
-0.57 TurkcellIletism TKC 9.90
-0.13 TurquoiseHill TRQ 3.03
T U V
Net
Sym Close Chg
Stock
0.44 21stCenturyFoxA FOXA 36.82
-1.27 21stCenturyFoxB FOX 36.42
TWTR 31.86
-0.78 Twitter
TYL 203.11
0.14 TylerTech
0.53 TysonFoods TSN 74.38
0.23 UBS Group UBS 18.97
UDR 33.62
-1.55 UDR
UGI 43.09
0.09 UGI
-1.06 US Foods USFD 33.39
-0.84 UltaBeauty ULTA 203.35
-0.56 UltSoftware ULTI 238.46
-0.67 UltraparPart UGP 23.26
-2.33 UnderArmour A UAA 16.58
-0.43 UnderArmour C UA 15.05
UN 52.30
2.17 Unilever
UL 51.60
... Unilever
0.81 UnionPacific UNP 130.25
0.55 UnitedContinental UAL 67.79
-5.70 UnitedMicro UMC 2.41
UPS 104.41
-0.42 UPS B
-0.01 UnitedRentals URI 175.09
-0.11 US Bancorp USB 54.36
X
43.51
-1.05 US Steel
-1.20 UnitedTech UTX 134.74
-0.62 UnitedHealth UNH 226.16
-0.34 UnivDisplay OLED 129.80
1.00 UniversalHealthB UHS 114.20
0.95 UnumGroup UNM 50.96
VER 6.85
-2.66 VEREIT
VFC 74.57
0.19 VF
V
122.94
-0.34 Visa
VailResorts
MTN 205.87
-0.69
VALE 13.73
-0.64 Vale
-0.30 ValeantPharm VRX 16.39
-3.31 ValeroEnergy VLO 90.42
0.56 VarianMed VAR 119.34
VEDL 20.18
-0.54 Vedanta
-0.06 s VeevaSystems VEEV 69.70
VTR 48.32
0.14 t Ventas
VRSN 116.02
-2.46 VeriSign
0.53 VeriskAnalytics VRSK 102.19
Verizon
VZ
47.74
-1.02
-0.21 VertxPharm VRTX 166.03
Viacom
A
VIA
39.10
-1.26
-0.22 Viacom B VIAB 33.34
Vipshop
VIPS
17.39
-1.96
-0.16 VistraEnergy VST 18.95
VMware
VMW
131.75
0.73
VOD 28.31
-0.70 Vodafone
VornadoRealty VNO 66.47
-1.23
VoyaFinancial VOYA 51.02
-0.73
VulcanMatls VMC 117.73
-0.03
-0.42
-0.27
-0.82 WABCO
WBC 137.97
-0.20 WEC Energy WEC 59.92
WEX
WEX 149.55
W.P.Carey WPC 59.92
WPP
WPP 95.17
1.06
WPX Energy WPX 14.13
-0.74
Wabtec
WAB 81.34
-1.30
WalgreensBoots WBA 68.89
-0.53
Walmart
WMT 90.01
-1.63
WasteConnections WCN 70.78
-0.27
WasteMgt WM 86.32
5.37 Waters
WAT 204.64
0.67 Watsco
WSO 165.37
-0.49 Wayfair
W 77.42
-0.09 Weibo
WB 128.52
-0.27 WellCareHealth WCG 193.91
-0.36 WellsFargo WFC 58.41
0.26 t Welltower WELL 52.50
-1.28 WestPharmSvcs WST 87.22
-0.16 WestarEnergy WR 48.73
-0.36 WestAllianceBcp WAL 58.46
-0.92 WesternDigital WDC 87.04
-0.80 WesternGasEquity WGP 36.40
-0.31 WesternGasPtrs WES 46.55
0.17 WesternUnion WU 19.82
0.09 WestlakeChem WLK 108.26
-1.53 WestpacBanking WBK 23.76
-3.89 WestRock WRK 65.76
-0.23 Weyerhaeuser WY 35.03
-0.07 WheatonPrecMet WPM 19.08
-0.04 Whirlpool
WHR 162.43
-0.59 Williams
WMB 27.76
0.64 WilliamsPartners WPZ 36.24
-7.93 WillisTowers WLTW 157.90
-0.66 Wipro
WIT 5.51
0.01 WooriBank WF 45.48
-0.40 Workday
WDAY 126.67
-2.10 Worldpay
WP 81.28
-0.55 Wyndham WYN 115.78
1.56 WynnResorts WYNN 167.50
-5.27 s XPO Logistics XPO 98.43
-1.36 XcelEnergy XEL 43.28
-1.36 Xerox
XRX 30.32
-1.27 Xilinx
XLNX 71.25
-1.62 Xylem
XYL 74.58
-0.77 YPF
YPF 23.11
-0.99 YY
YY 129.33
-0.77 Yandex
YNDX 41.09
-0.04 YumBrands YUM 81.38
-1.43 YumChina YUMC 43.32
-0.10 ZTO Express ZTO 15.87
-1.67 ZayoGroup ZAYO 35.85
-3.07 ZebraTech ZBRA 138.14
-0.28 Zillow A
ZG 47.54
-2.54 Zillow C
Z
47.67
-0.43 ZimmerBiomet ZBH 116.25
-0.19 ZionsBancorp ZION 54.97
0.11 Zoetis
ZTS 80.86
-0.81
-0.72
0.54
-0.20
0.12
-0.35
0.04
-0.31
0.21
0.29
-0.74
-0.21
-0.17
-0.04
-0.50
-0.32
-3.49
-0.07
...
-1.28
-3.33
-0.65
-0.49
0.83
-6.36
-0.25
-3.30
-0.98
0.05
-0.33
-0.43
-3.49
-0.76
-2.11
-2.35
-2.27
-0.65
7.63
-0.59
-0.39
-0.88
-0.30
0.15
-0.10
0.13
0.06
-0.03
2.90
-0.27
0.07
-0.78
-1.14
W X Y Z
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
-2.66
-0.65
-3.10
-0.16
-0.08
-0.45
-0.72
-0.25
-1.51
-0.86
-0.63
-1.47
-1.70
1.15
-0.61
-1.03
-0.80
0.28
-0.05
-0.39
-0.83
-0.15
-0.50
-1.01
-0.17
-2.83
-0.29
-0.90
-0.23
-0.03
-2.81
-0.60
-0.78
-3.11
0.06
-1.14
-1.54
3.27
-0.18
-1.25
0.34
-0.42
0.07
-0.19
-1.17
-0.35
0.24
-0.96
1.20
-0.15
0.51
0.26
-2.23
0.74
0.88
-1.89
-0.77
-0.81
February 28, 2018
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Week
Latest ago
Inflation
Jan. Index
level
Chg From (%)
Dec. '17 Jan. '17
U.S. consumer price index
247.867
254.638
All items
Core
0.54
0.43
2.1
1.8
International rates
Latest
Week
ago
52-Week
High
Low
Prime rates
Treasury bill auction
1.495 1.380 1.495 0.400
1.645 1.630 1.645 0.515
1.830 1.820 1.830 0.670
4 weeks
13 weeks
26 weeks
Secondary market
Fannie Mae
30-year mortgage yields
Other short-term rates
Latest
Policy Rates
0.00
0.50
0.50
1.50
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.44
U.S.
1.38
1.62
0.50
—52-WEEK—
High Low
2.22375 2.14550 2.22375 1.39072
2.50219 2.42563 2.50219 1.69511
Six month
One year
Euro Libor
One month
Three month
Six month
One year
-0.402
-0.379
-0.328
-0.255
-0.403
-0.384
-0.322
-0.259
-0.388
-0.352
-0.245
-0.110
-0.420
-0.387
-0.339
-0.263
One month
Three month
Six month
One year
52-Week
high
low
-0.370
-0.327
-0.270
-0.191
Latest
-0.370
-0.329
-0.271
-0.191
Value
Traded
-0.366
-0.325
-0.237
-0.106
-0.375
-0.332
-0.279
-0.194
52-Week
High
Low
DTCC GCF Repo Index
3.25
3.25
3.25
2.50
1.476 28.700 1.836 0.506
1.538 115.164 1.852 0.525
Treasury
MBS
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
1.85
1.91
1.94
0.81
Libor
One month
Three month
U.S. government rates
Week
ago
Call money
90 days
Overnight repurchase
Week
Latest ago
Euro interbank offered rate (Euribor)
4.046 3.996 4.071 3.253
4.082 4.029 4.108 3.281
30 days
60 days
4.50 4.50 4.50 3.75
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
U.S.
Canada
Japan
—52-WEEK—
High Low
1.67007 1.60251 1.67007 0.81056
2.01719 1.91975 2.01719 1.09278
DTCC GCF Repo Index Futures
Treasury Feb
Treasury Mar
Treasury Apr
98.579 0.004 4721 1.421
98.415 -0.005 1792 1.585
98.255 unch. 672 1.745
Discount
2.00
2.00
2.00
1.25
1.4200
1.5625
1.3000
1.4100
1.4200
1.4500
1.6500
1.4100
1.4300
1.4400
0.6600
0.8125
0.5000
0.6600
0.6700
Federal funds
Effective rate
High
Low
Bid
Offer
1.3700
1.6500
1.2500
1.3300
1.3600
Net YTD
NAV Chg % Ret Fund
NA
...
NA
...
NA
...
MFS Funds Class I
40.69 -0.57
ValueI
MFS Funds Instl
25.47 -0.24
IntlEq
Mutual Series
31.69 -0.28
GlbDiscA
Oakmark Funds Invest
NA
...
EqtyInc r
NA
...
Oakmark
NA
...
OakmrkInt
Old Westbury Fds
14.59 -0.12
LrgCpStr
Oppenheimer Y
NA
...
DevMktY
43.98 -0.45
IntGrowY
Parnassus Fds
42.86 -0.52
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
10.07 +0.02
TotRt
PIMCO Funds A
NA
...
IncomeFd
PIMCO Funds D
NA
...
IncomeFd
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
NA
...
IncomeP
Price Funds
105.03 -0.58
BlChip
28.50 -0.16
CapApp
33.37 -0.42
EqInc
73.00 -0.81
EqIndex
67.20 -0.34
Growth
72.64 -1.08
HelSci
40.10 -0.15
InstlCapG
18.63 -0.19
IntlStk
15.03 -0.18
IntlValEq
90.02 -0.50
MCapGro
30.15 -0.30
MCapVal
54.73 -0.30
N Horiz
9.27 +0.01
N Inc
11.36 -0.13
OverS SF r
NA
...
R2020
NA R2025
NA R2030
NA R2035
-0.2
...
-0.3
NA
NA
NA
0.9
NA
0.8
0.4
NA
-1.6
NA
NA
NA
NA
9.1
0.8
0.1
1.8
7.3
3.3
8.6
-0.2
-0.6
3.4
-0.8
4.1
-1.9
0.4
NA
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.
Net YTD
NAV Chg % Ret Fund
NA
...
NA
...
NA
...
NA
...
R2040
37.37 -0.41
Value
PRIMECAP Odyssey Fds
AggGrowth r 48.42 -0.56
40.12 -0.48
Growth r
Principal Investors
NA
...
DivIntlInst
Prudential Cl Z & I
14.18 +0.02
TRBdZ
Schwab Funds
41.94 -0.47
S&P Sel
TIAA/CREF Funds
19.92 -0.23
EqIdxInst
IntlEqIdxInst 20.15 -0.23
Tweedy Browne Fds
28.54 -0.21
GblValue
VANGUARD ADMIRAL
251.32 -2.79
500Adml
34.74 -0.21
BalAdml
CAITAdml
11.58
...
CapOpAdml r 159.24 -1.23
EMAdmr
39.44 -0.50
77.19 -1.09
EqIncAdml
90.89 -0.81
ExplrAdml
84.28 -0.95
ExtndAdml
GNMAAdml 10.23 +0.02
GrwthAdml
75.08 -0.67
HlthCareAdml r 86.91 -1.23
...
HYCorAdml r 5.82
25.12 +0.02
InfProAd
99.95 -0.82
IntlGrAdml
ITBondAdml 11.03 +0.01
...
ITIGradeAdml 9.50
LTGradeAdml 10.02 +0.02
MidCpAdml 191.79 -1.75
11.19
...
MuHYAdml
MuIntAdml
13.88 +0.01
11.39 +0.01
MuLTAdml
MuLtdAdml
10.84
...
...
MuShtAdml 15.72
PrmcpAdml r 139.16 -1.14
SmCapAdml 69.84 -0.84
...
STBondAdml 10.27
STIGradeAdml 10.52
...
Net YTD
NAV Chg % Ret Fund
TotBdAdml
TotIntBdIdxAdm
TotIntlAdmIdx r
TotStAdml
TxMIn r
ValAdml
9.2 WdsrllAdml
7.7 WellsIAdml
WelltnAdml
NA WndsrAdml
+0.01
+0.01
-0.37
-0.75
-0.17
-0.53
-0.94
-0.32
-0.59
-1.04
-2.3
-0.26 0.4
-2.92 0.3
-0.13 -0.1
-0.16 0.1
-0.18 0.3
-0.21 0.4
-0.23 0.6
-0.25 0.7
-0.49 0.7
-0.07 -0.5
-0.31 0.4
-0.17
...
-0.25 2.8
NA
NA
NA
NA
0.1
1.8
1.4
-0.1
0.2
1.8
0.1
-1.3
3.7
3.3
-1.0
2.8
-0.6
-1.7
3.8
0.3
-0.9
-1.9
4.6
-2.5
-2.1
-5.3
0.1
-1.6
-1.3
-1.8
-0.2
0.3
4.2
-1.3
-0.8
-0.7
10.48
21.63
30.57
67.66
14.32
41.50
67.06
63.88
72.01
79.59
VANGUARD FDS
26.65
DivdGro
206.06
HlthCare r
INSTTRF2020 22.51
INSTTRF2025 22.88
INSTTRF2030 23.18
INSTTRF2035 23.47
INSTTRF2040 23.76
INSTTRF2045 23.96
40.15
IntlVal
19.87
LifeCon
LifeGro
33.82
LifeMod
27.14
PrmcpCor
27.66
-2.1
-0.2
0.2
1.4
-0.6
0.2
-0.1
-2.2
-0.8
0.8
Net YTD
NAV Chg % Ret Fund
SelValu r
STAR
STIGrade
TgtRe2015
TgtRe2020
TgtRe2025
TgtRe2030
TgtRe2035
TgtRe2040
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
30.40 -0.35
26.99 -0.16
10.52
...
15.28 -0.07
31.36 -0.17
18.51 -0.12
33.72 -0.26
20.77 -0.19
35.99 -0.35
22.65 -0.23
36.45 -0.37
13.48 -0.04
10.82 +0.01
26.37 -0.13
41.69 -0.35
37.79 -0.53
VANGUARD INDEX FDS
251.27 -2.80
500
207.98 -2.35
ExtndIstPl
55.39 -0.76
SmValAdml
10.45 +0.02
TotBd2
18.27 -0.23
TotIntl
67.63 -0.75
TotSt
VANGUARD INSTL FDS
-2.8
0.7
-0.7
-0.3
-0.1
0.1
0.3
0.4
0.6
0.7
0.7
-0.5
-0.1
-2.2
-0.8
-0.1
Net YTD
NAV Chg % Ret
34.74
BalInst
DevMktsIndInst 14.34
DevMktsInxInst 22.41
84.27
ExtndInst
75.08
GrwthInst
10.23
InPrSeIn
InstIdx
247.90
InstPlus
247.92
InstTStPlus
60.31
MidCpInst
42.37
MidCpIstPl
208.95
SmCapInst
69.84
SmCapIstPl 201.59
STIGradeInst 10.52
10.48
TotBdInst
10.45
TotBdInst2
10.48
TotBdInstPl
TotIntBdIdxInst 32.46
TotIntlInstIdx r 122.25
TotItlInstPlId r 122.27
67.67
TotStInst
41.50
ValueInst
1.8
-0.6
-2.9
-2.1
0.2
1.4 Western Asset
CorePlusBdI
-0.22
-0.17
-0.26
-0.96
-0.67
+0.01
-2.76
-2.76
-0.67
-0.39
-1.92
-0.84
-2.42
...
+0.01
+0.02
+0.01
+0.02
-1.48
-1.48
-0.75
-0.53
0.1
-0.6
-0.7
-0.6
3.8
-1.9
1.8
1.8
1.4
0.1
0.1
-1.3
-1.3
-0.6
-2.1
-2.1
-2.1
-0.1
0.2
0.2
1.4
0.2
11.53 +0.02 -2.1
IPO Scorecard
Performance of IPOs, most-recent listed first
Company SYMBOL
IPO date/Offer price
% Chg From
Wed3s Offer 1st-day
close ($) price close
6.20
55.0
0.3
DFB Healthcare Acquisitions 10.03
DFBHU Feb. 16/$10.00
Biofrontera
14.10
BFRA Feb. 14/$9.98
0.3
0.3
41.3
15.8
Farmmi
FAMI Feb. 16/$4.00
Company SYMBOL
IPO date/Offer price
Quintana Energy Svcs
QES Feb. 9/$10.00
Cactus
WHD Feb. 8/$19.00
Evolus
EOLS Feb. 8/$12.00
% Chg From
Wed3s Offer 1st-day
close ($) price close
9.65
–3.5
7.2
24.61
29.5
21.5
12.09
0.7
5.1
Motus GI
MOTS Feb. 14/$5.00
5.00
...
14.2
Huami
HMI Feb. 8/$11.00
11.00
...
–2.2
Cardlytics
CDLX Feb. 9/$13.00
18.19
39.9
36.1
Mudrick Capital Acquisition 10.13
MUDSU Feb. 8/$10.00
1.3
1.3
Sources: WSJ Market Data Group; FactSet Research Systems
.
B10 | Thursday, March 1, 2018
* *
THE WALL STREET JOURNAL.
BANKING & FINANCE
Deloitte Settles
Over Taylor Bean
The city could decide to consider such things as energy use, labor rights and shareholder rights when evaluating new investments.
Chicago Rethinks Investing
Proposed legislation
seeks to consider
‘ESG’ factors in
investment decisions
BY SARAH KROUSE
Officials in the nation’s
third-largest city want to
make a company’s record on
issues such as water usage, labor rights and diversity as important as creditworthiness
when deciding how to invest
its $8 billion operating budget.
Chicago Treasurer Kurt
Summers is seeking permission
from the city council to use environmental, social and governance factors to inform investment decisions. Legislation
proposed Wednesday would
amend the city’s current investment policy to allow for
the so-called ESG changes.
“You have to know that
these risks exist especially as
an investor of public dollars,”
Mr. Summers said in an interview. “Frankly, I see this as enhancing our ability to fulfill
our fiduciary responsibility.”
Local governments in the
U.S. are in the early stages of
determining how much weight
to give to such ESG factors,
which can be broadly defined
and hard to measure. Many
public officials are also struggling to determine which social issues—from diversity to
gun control—their municipalities should embrace and how
to express those stances
through investments of taxpayer dollars.
Public pension funds from
California to New York currently allocate portions of
their portfolios to companies
with low carbon emissions or
those with strong environmental, social and governance
practices.
Chicago’s move would be
significant both because it
would apply ESG investing
across the entire portfolio and
because the city invests
its operating budget primarily
in fixed income. Bond investors are unable to use tools
such as proxy votes that are
available to stockholders who
wish to express frustration
with company management.
The
investment-policy
change that Mr. Summers proposed in Chicago could allow
the city to invest in new types
of fixed income such as green
bonds, which typically finance
environmentally friendly infrastructure, energy and real-estate projects, as well as bonds
issued by foreign governments that are aimed at reducing poverty. The city would
consider water and energy use,
human and labor rights and
executive compensation and
shareholder rights when evaluating the new investments.
Environmental,
social and governance
issues can be difficult
to measure.
Chicago’s operating budget
is currently invested primarily
in highly rated government
and corporate bonds.
City officials have studied
the move to use ESG ratings and data for the past four
to six months, opting against
changes that would screen out
certain bond issuers or require
the city to sell current holdings, known as divestment. Alderman John Arena studied
potential divestment from fossil-fuel companies about a
year ago, before working with
Mr. Summers on the current ESG proposal.
As interest in ESG issues
grows, funds and ratings
based on such factors are becoming a growing source of
revenue for money managers
and data providers. Asset
managers launched 40 new
“sustainable funds” in 2017,
according to fund-research
firm Morningstar Inc., up from
10 three years earlier.
Assets invested in that
group of funds—which doesn’t
include funds that simply refrain from investing in companies that an investor might
find objectionable—grew to
$95 billion in 2017, according
to Morningstar, up nearly 60%
from the prior year.
Morningstar itself assigns
funds a sustainability rating
based on how well the companies in which they invest manage ESG risks relative to other
funds with similar mandates.
Index provider MSCI this
year highlighted new revenue
from ESG ratings as a driver of
revenue growth. Revenue from
ESG products at MSCI grew
about 24% in the fourth quarter from a year earlier to $14.7
million.
Copper prices slid Wednesday, pressured by a rising dollar
and weaker-than-expected data
from China, the world’s largest
buyer of the metal.
Copper for May delivery fell
1.7% at $3.1325 a pound on the
Comex division of the New York
Mercantile Exchange. Prices for
aluminum, nickel and other industrial metals also declined.
The dollar delivered its first
monthly gain against a basket of
currencies since October, driven by
expectations that stronger growth
in the U.S. may push the Federal
Reserve to raise rates at a fasterthan-expected pace. A rising dollar
tends to weigh on prices for copper, which is denominated in the
U.S. currency and becomes less
affordable to foreign investors
when the dollar appreciates.
The Chinese manufacturing
purchasing managers index came
in at its weakest since July 2016.
China accounts for roughly 45%
of global copper demand.
Chinese investors were also
digesting Communist Party plans
to remove term limits on the
country’s presidency at its national congress, to begin March 5.
At right, molten copper pours
into ceramic molds to form
plates in Peru.
—Ira Iosebashvili
and David Hodari
SPOTIFY
Continued from page B1
Technologies Inc. and homerental company Airbnb Inc.—
have put off going public as
they still have access to ample
capital from big investors.
Launched in Sweden in
2008, Spotify brought its service to the U.S. in 2011, stoking a disruption—and recovery—of the music industry. In
a market depleted by piracy
and file sharing, Spotify introduced a massive library of
songs available to users free in
exchange for listening to ads
or on-demand for $9.99 a
month. The service boasts 35
DADO GALDIERI/BLOOMBERG NEWS
Copper Prices Decline on Strong Dollar, China Weakness
million songs, according to the
filing, and said it has 159 million monthly active users. As
of Dec. 31, it had 71 million
paying subscribers.
The major music companies
were given equity in Spotify as
part of their licensing deals,
but only Sony Corp.—the fifthlargest shareholder overall
with a 5.7% stake—now holds
a significant enough stake that
Spotify is required to report it.
Still, music streaming has
yet to prove itself as a viable
business, as companies operating such services struggle to
reach profitability. As the services grow, active users and
paid subscribers are the most
closely watched metrics. Spotify has said it can become
profitable once it has amassed
sufficient users, without specifying what that level would be.
Figures released by the
company indicated that 44% of
users in 2017 were paying subscribers, up from 31% in 2015.
Subscribers generate much
more revenue than users who
listen via the company’s adsupported free option.
Spotify also said that those
paying subscribers have been
generating a shrinking amount
of revenue, on average. A
“premium” user was worth an
average of €5.24 a month in
2017, down from €7.06 in 2015.
The company attributed that
decline to the introduction of
discounts for students and
families, which it said were
important for attracting and
retaining subscribers.
Some music-company executives have grumbled over Spotify’s challenges at converting
users of its free tier into paying subscribers, people familiar
with their thinking have said.
Meanwhile, Apple Inc.’s
music-streaming
service,
which only offers a subscription model, has been adding
subscribers in the U.S. at a
faster rate than Spotify.
Spotify remains the global
leader, with nearly twice as
many paid subscribers as No.
2 Apple Music. Tech giants
Amazon.com Inc. and Alphabet Inc.’s YouTube also operate paid music-streaming services, as does internet-radio
Accounting firm Deloitte &
Touche LLP agreed to pay
$149.5 million to settle Justice
Department allegations that it
failed to head off a large fraud
at a mortgage company that
collapsed during the financial
crisis.
Deloitte should have detected misconduct at Taylor
Bean & Whitaker Mortgage
Corp., for which it was the outside auditor, but the firm
“knowingly deviated” from auditing standards and thus allowed fraud at the company to
continue until Taylor Bean filed
for bankruptcy in 2009, the
Justice Department said on
Wednesday.
Deloitte said it was
“pleased to have resolved this
matter to avoid the risk and
uncertainty of protracted litigation.” The Taylor Bean fraud
was “specifically aimed at misleading our organization and
investors,” and Deloitte stands
behind the work it did for Taylor Bean, the firm said.
Authorities say Taylor Bean
covered up financial problems
for years by selling fake mortgages and mortgages that had
already been sold to other investors. At least eight people
were convicted or pleaded
guilty to participating in the
fraud, including Lee Farkas,
Taylor Bean’s chairman.
The Taylor Bean fraud also
helped lead to the 2009 collapse of Alabama’s Colonial
Bank, one of the biggest bank
failures of the financial crisis.
Taylor Bean was a major customer of Colonial’s, and authorities have said it overdrew
its Colonial account for years
to cover up its own cash
shortfalls.
Deloitte has previously settled related lawsuits brought
by companies that helped fund
Taylor Bean and by the company’s bankruptcy trustee.
KIYOSHI OTA/BLOOMBERG NEWS
CHRISTOPHER DILTS/BLOOMBERG NEWS
BY MICHAEL RAPOPORT
Bank of Japan Gov. Haruhiko Kuroda pared purchases of longterm bonds, but the move didn’t appear to roil investors.
Japan’s Markets
Take Steps in Stride
BY SURYATAPA BHATTACHARYA
Japan’s
central
bank
trimmed back its buying of
long-term Japanese government debt, but, unlike in early
January, markets didn’t swoon
at its potential deeper meaning.
The muted response on
Wednesday shows the Bank of
Japan may be making progress
in persuading investors that
its day-to-day operations
aren’t tea leaves for divining
future interest-rate increases.
After the central bank said
Wednesday that it would trim
bond purchases, the yen
strengthened a bit, stock-buying sentiment soured somewhat and longer-term yields
briefly edged up, but the reaction was nothing compared
with the 1% drop in the dollar
against the yen after a similar
move on Jan. 9.
Then, around lunchtime,
Bank of Japan Gov. Haruhiko
Kuroda talked about a gradual
exit from policy, and his comments didn’t prompt a sudden
charge of the yen bulls. And at
the end of the afternoon, the
central bank unveiled an unchanged bond-buying program
for March.
The lack of a knee-jerk reaction shows that, after much
global trepidation during the
slump in stocks in early February, a minor tweaking of the
bank’s asset purchases just
doesn’t appear to be quite so
important for investors.
The bank bought ¥10 billion
($93.2 million) less of government bonds that have more
than 25 years remaining as
compared with its last opera-
tion to scoop up equivalent
Japanese debt.
The Jan. 9 move that upset
markets also involved a more
significant trimming of purchases in the 10-to-25-year
range. It wasn’t anticipated
and came on a day with little
else for investors to zoom in
on.
Market participants were
expecting a cutback “so the reaction cannot be described as
large,” said Takahiro Sekido,
Japan strategist at Bank of
Tokyo-Mitsubishi UFJ. The
Bank of Japan was already on
track to record more purchases in long-term debt in
February than the previous
month, so market participants
were well prepared for a cut in
operations on the final day of
the month, said Mr. Sekido.
Still, even after Wednesday’s cutbacks, the central
bank’s purchases for the
month are ¥30 billion more
than its January purchases.
That is because the Bank of
Japan hesitated to cut back on
its operations in February due
to a strong yen, which climbed
to a 15-month high against the
dollar on Feb. 16.
The bank appeared to be
hesitant to ruffle markets with
the nomination process for Mr.
Kuroda’s second term and his
two deputy governors under
way.
Mr. Kuroda’s comments in
Parliament on Wednesday
were also in line with market
expectations, Mr. Sekido said.
The bank is going to take a
cautious and gradual approach
to exiting its easing measures
when the time comes. “That’s
their signal,” he said.
company Pandora Media Inc.
By structuring its IPO as a
direct listing, Spotify will save
tens of millions on banker
fees, paying roughly $35 million, according to people familiar with the structure,
rather than the $100 million
Snap Inc. paid for its IPO with
an expected initial valuation
close to where Spotify is expected to make its debut.
Instead of setting a price and
placing shares with chosen investors before trading begins,
Spotify’s advisers at Goldman
Sachs Group Inc., Morgan
Stanley and Allen & Co. will
perform a lesser role by helping
guide buyers and sellers. They
won’t participate in investor
meetings ahead of the kickoff of
trading, the filing said.
Spotify, in its filing, said its
advisers won’t build a book of
investors or set a price. Instead, one of its three advisers, Morgan Stanley, will consult with designated market
maker firms to set the opening
public price of Spotify shares
on the NYSE, which will be determined by the buy-and-sell
orders from investors.
Spotify will have a dualclass structure that gives its
founders—Daniel Ek and Martin Lorentzon—80.4% of the
voting control. Mr. Ek, the
company’s CEO, recently held
about 25.7% of its stock, while
Mr. Lorentzon held roughly
13.2%.
—Rolfe Winkler
contributed to this article.
.
THE WALL STREET JOURNAL.
Thursday, March 1, 2018 | B11
* *
MARKETS
Oil-Price Forecast Stays Bullish
Analysts see recovery
enduring this year, as
OPEC stays course on
production cutbacks
BY CHRISTOPHER ALESSI
LONDON—Banks
raised
their forecasts for oil prices
for the fifth month in a row in
February, signaling continued
confidence that prices will
continue to
COMMODITIES recover as
the global
supply glut
drains due to production cuts.
Brent crude, the global
benchmark, is now expected to
average $62 a barrel this year,
while West Texas Intermediate, the U.S. standard, should
average $58 a barrel, according to a poll of 15 investment
banks surveyed by The Wall
Street Journal toward the end
of February. Both predictions
are up roughly $1 from the
January survey.
On Wednesday, Brent settled at $65.78, with WTI at
$61.64.
Oil prices have been bolstered over the past year, as
declining global petroleum inventories have helped to rebalance supply and demand in
the market. Central to that rebalancing has been efforts led
by the Organization of the Petroleum Exporting Countries
to limit crude production.
OPEC and 10 major producers outside the oil group, including Russia, have been
holding back crude output by
about 1.8 million barrels a day,
or nearly 2% of global supply,
since the start of 2017. The
participants agreed this past
November to extend that deal
through the end of this year.
“Overall, we see markets
balanced in 2018 as we expect
a strong commitment from
OPEC and participating nonOPEC countries to deliver on
the agreed deal,” analysts at
JPMorgan Chase & Co. said.
Prices have also been supported by geopolitical risks to
supply in the Middle East, production outages in Venezuela,
a weaker U.S. dollar and rising
demand on the back of robust
global economic growth. A
weaker dollar typically pushes
up oil by making the dollardenominated commodity less
expensive in other currencies.
Brent climbed more than
50% in the second half of 2017.
However, crude’s ascent faltered at the start of February,
initially triggered by a global
stock-market rout. Oil markets
experienced a more than 12%
selloff in the first two weeks
of the month, which was sustained by concerns the market
is again being inundated by
U.S. shale output.
But banks remain largely
bullish on oil prices this year
because OPEC’s commitment
to production cuts is “limiting
the downside of shale production,” said Giovanni Staunovo,
commodities analyst at UBS
Wealth Management.
The banks in the Journal
survey predict that, on average, Brent will fall to about
$60 a barrel next year, before
averaging $61 a barrel by
2020.
Treasurys
Climb
AfterU.S.,
ChinaData
Crude Outlook
Where investment banks in February's survey see the price
of U.S. crude-oil futures in the next few quarters
Morgan Stanley
$110
RBC
100
BY AKANE OTANI
Jefferies
90
Société Générale
80
UBS
70
Standard
Chartered
60
Credit Suisse
JPMorgan
50
40
Bank of America
Merrill Lynch
30
Commerzbank
BNP Paribas
20
ING Bank
Nymex crude-oil futures, price per barrel
Through Feb. 26
10
Deutsche Bank
2Q 3Q 4Q
0
2014
2015
2016
2017
Rise in Inventory
Pressures Crude
Crude prices slid in volatile
trading after federal data
showed that oil and gasoline
are building up in storage as
U.S. production climbs.
Prices tumbled 4.8% in February, ending a five-month
streak of gains, as oil came under pressure at times from a
rising dollar and a stock-market
selloff, in addition to a steady
stream of data showing that
U.S. output is relentlessly rising.
On Wednesday, crude for
April delivery fell $1.37, or 2.2%,
to $61.64 a barrel on the New
York Mercantile Exchange.
Brent, the global benchmark,
dropped 85 cents, or 1.3%, to
$65.78, on ICE Futures Europe.
Prices fell after data
showed larger-than-expected
increases in storage levels. Oil
climbed back throughout the
day before selling off sharply
again as the U.S. dollar rose
and investors who have
amassed bullish positions on
crude-oil futures seized on an
opportunity to sell.
Crude inventories rose by
Citigroup
2018
Sources: WSJ Market Data Group (oil price); the companies (forecasts)
Barclays
THE WALL STREET JOURNAL.
three million barrels last week,
and gasoline increased by 2.5
million barrels, according to the
U.S. Energy Information Administration. Distillate inventories
fell by one million barrels. Altogether, total petroleum stockpiles increased by 3.7 million
barrels.
Refiners continued to churn
out large amounts of fuel for
this time of year, and the increase in gasoline inventories
weighed on prices.
Gasoline futures fell 4.57
cents, or 2.5%, to $1.7577 a gallon.
—Alison Sider
The yield on the 10year Treasury has
risen for five of the
past six months.
U.S. Dollar
Cashes In
For Month
DHIRAJ SINGH/BLOOMBERG NEWS
BY DANIEL KRUGER
The U.S. dollar edged higher
Wednesday, supported by increasing speculation that the
Federal Reserve could raise interest rates four times this
year.
The Wall Street Journal Dollar Index, which measures the
currency against a basket of 16
others, rose
CURRENCIES 0.2% to 84.19.
The dollar has
advanced 1.8%
since hitting a three-year low
on Feb. 15, giving it a 1.2% gain
for February. It was the index’s
largest one-month advance
since October.
The dollar posted its biggest
gain since Feb. 7 on Tuesday
after Fed Chairman Jerome
Powell told lawmakers on Capitol Hill that he has become
more optimistic about the U.S.
economy this year and that the
central bank remains on track
to gradually lift short-term interest rates. The currency has
risen in seven of the past nine
trading sessions.
Mr. Powell said he “wouldn’t
want to prejudge” whether officials might pencil in four interest-rate increases this year,
rather than the three they anticipated late last year, when he
was asked about the likely path
of rate rises. Higher interest
rates tend to attract investors
to a currency by offering the
potential for higher returns.
The testimony led some investors to raise their expectations for the Fed to boost interest rates four times this year.
Federal-funds futures, used by
investors to bet on central-bank
policy, late Wednesday showed
a roughly 35% chance of four
increases by year-end, up from
28% a week earlier, according
to data from CME Group.
“We could be finally seeing
the end of the down move in
the dollar,” said Brad Bechtel,
head of currency strategy at
Jefferies Group LLC.
The currency also is being
supported by rising government-bond yields in the U.S.,
which make it relatively expensive to bet against the currency
in favor of one where bond
yields are lower, such as Europe, Mr. Bechtel said.
Weakness in the dollar in recent months had helped support expectations for an acceleration in inflation, as a drop in
the purchasing power of the
currency leads to higher prices
for imports, and key commodities such as oil, which are
priced in the currency.
For February, the dollar
gained 1.8% against the euro
and fell 2.3% against the yen.
The currency sank 2.4% against the U.S. dollar in February as foreign investors sold holdings of Indian stocks and bonds.
India’s Woes Drag Down Rupee
BY SAUMYA VAISHAMPAYAN
Souring Sentiment
Net foreign flows into Indian
markets, monthly
Bonds
Stocks
$5 billion
4
3
2
1
0
–1
–2
Feb.
’17
May
Aug.
Nov.
Feb.
’18
Note: Data for February 2018 are preliminary.
Source: Australia & New Zealand
Banking Group
THE WALL STREET JOURNAL.
Investor sentiment on
emerging markets can fizzle
fast: Just look at India.
The rupee this month
dropped 2.4% against the dollar, making it one of Asia’s
worst-performing currencies
so far in 2018. It had advanced 6.4% against the dollar last year, as investors
chasing juicy returns poured
money into the country’s financial markets.
A broad-based rebound in
the dollar hasn’t helped. But
several domestic factors have
collided recently, prompting
foreign investors to sell holdings of Indian stocks and bonds
and dragging the rupee lower.
The latest problem for the
rupee relates to the country’s
second largest state-owned
bank, Punjab National Bank,
which said Feb. 14 that it had
uncovered a $1.77 billion fraud
at one of its branches, representing one-third of its market
value of 360 billion rupees
($5.5 billion). The bank on
Monday said the transactions
could total $2 billion. Its
shares slid 41% this month,
rippling through the Indian
banking sector: Shares of
HDFC Bank and ICICI Bank
dropped 6.1% and 11%, respectively, in February.
It followed news that India’s trade deficit grew to its
widest in almost five years in
January, driven by a surge in
imports. That translates into
more local demand in India for
foreign currencies.
And India’s benchmark con-
Government
bonds
strengthened Wednesday, recouping some of their losses
after renewed concerns over
the course of Federal Reserve
policy had sent yields jumping.
The yield on the benchmark
10-year U.S. Treasury note settled at 2.870%,
CREDIT
compared with
MARKETS 2.910% Tuesday.
Long bonds also
rose, with the
yield on the 30-year Treasury
bond—which often reflects investors’ longer-term outlook
for the economy—down to
3.130% from 3.175% Tuesday.
Bond yields, which fall as
prices rise, declined overnight
as data showed the pace of
growth in China’s manufacturing sector falling sharply in
sumer-price index in January
rose roughly 5.1% from a year
earlier, remaining above the
central bank’s 4% inflation target. Inflation is a threat for investors who own long-term
bonds, as it chips away at the
purchasing power of bonds’
fixed payments. In turn, that
could encourage foreign investors to sell their Indian bond
holdings, further weighing no
the rupee.
Preliminary data shows foreign investors yanked a net
$1.3 billion out of Indian stocks
and $100 million from the
country’s bond market in February, according to Khoon Goh,
head of Asia research at Australia & New Zealand Banking
Group in Singapore. That would
be the biggest one-month outflow since September.
February. Yields held on to
their declines after Commerce
Department data showed
growth in the U.S. economy
was slightly weaker than initially thought at the end of
last year.
Gross domestic product expanded at a seasonally and inflation-adjusted annual rate of
2.5% during the fourth quarter, the Commerce Department
said Wednesday. That was below the department’s initial
2.6% estimate but in line with
what economists surveyed by
The Wall Street Journal had
expected.
Despite the day’s moves,
Treasury yields notched another monthly advance. The
yield on the 10-year U.S. Treasury note has risen for five of
the past six months as investors have worried that inflation could be accelerating and
that there may not be enough
demand to meet additional
Treasurys issuance.
“We’ve shifted from a deflationary narrative to more of a
reflationary one, and that’s
driven a good deal of the move
we’ve seen in Treasury yields,”
said Lisa Hornby, fixed-income
portfolio manager at Schroders.
More recently, bonds have
also come under pressure as
the Federal Reserve has hinted
it could raise interest rates
more quickly than investors
had expected at the start of
the year. Bond yields jumped
Tuesday after Fed Chairman
Jerome Powell cited the possibility that inflation—a threat
to bonds because it chips away
at the purchasing power of
their fixed payments—could
accelerate.
Some investors, like Ms.
Hornby, remain skeptical that
prices will pick up at a pace
that will threaten markets.
“Inflation is rising, but
won’t likely move to more pernicious levels,” she said.
Still, with Mr. Powell new
to the Fed chairmanship, his
comments on inflation and
growth will likely continue to
be closely watched by investors looking to gauge whether
the Fed will tweak the course
of monetary policy.
Mr. Powell is expected to
deliver additional comments
Thursday at a semiannual address before the Senate Banking Committee.
Smaller Markets in Asia Are Emerging as Havens
BY ESE ERHERIENE
Stock investors in Asia
seeking a haven from the volatility that rocked markets
around the world in February
may have found it in an unexpected place.
At the height of the global
market selloff last month,
stock indexes in Malaysia and
Thailand, two of the smallest
markets in Asia, were down
just 3.4% and 3.6%, respectively, versus the 10% decline
in the S&P 500 index between
Feb. 1 and Feb. 9.
The Southeast Asian indexes ended February in the
black, a contrast to the U.S.
and larger markets like Hong
Kong and South Korea, which
fell 6.2% and 5.4%, respectively.
Historically, smaller emerging markets have tended to
swing more widely relative to
the U.S. and other major markets in times of stress. This often happened during the Asian
economic crisis in the late
1990s, when Thailand, among
others, had a severe currentaccount deficit.
Emerging markets have
performed well this time
around, largely as a result of
flexibility borne from building
up their foreign-currency reserves.
The lesser volatility in
Thailand and Malaysia can be
attributed to their large concentrations of domestically focused stocks, which helps
shield them from global turmoil, some analysts say. The
smaller markets have also
avoided large swings on the
upside. The S&P 500 has rebounded 5.1% from its lowest
point of the year in February,
while Malaysia’s FTSE Bursa
KLCI index is up 3.1% and the
Stock Exchange of Thailand index has risen 2.8% over the
period.
Riding Out the Storm
Index performance since late January
2%
0
FTSE Bursa
KLCI (Malaysia)
–2
SET (Thailand)
Taiex (Taiwan)
–4
S&P 500 (U.S.)
–6
Hang Seng
(Hong Kong)
–8
–10
–12
Jan. 26
Feb. 1
Source: FactSet
7
13
19
23
THE WALL STREET JOURNAL.
.
B12 | Thursday, March 1, 2018
THE WALL STREET JOURNAL.
* ***
MARKETS
Stocks Down for Month After Surging at Year’s Start
Every S&P 500 sector fell in February as worries about interest rates fueled market swings.
BY AMRITH RAMKUMAR
AND JON SINDREU
4%
The Dow Jones Industrial
Average and S&P 500 fell for
the second straight session,
ending February lower and
snapping their 10-month winning streaks as investors continued to weigh the impact of
higher interest rates on the
nearly nine-year bull market.
Although stocks around the
world have recovered a chunk
of their losses from a big selloff that sent the S&P 500 and
Dow into correction territory
on Feb. 8, February was the
worst month by percentage
decline since January 2016 for
the two indexes. After a record-setting start to the year,
a raft of misfired bets on market calm and interest-rate
concerns have helped spark
volatility.
Some investors have said
declines are a buying opportunity, with global earnings and
the economic backdrop looking stronger than they have in
years. Others aren’t so sure,
fearing a pickup in inflation
might encourage central banks
to tighten monetary policy
more quickly than anticipated.
“I think what we’re going
to see is something of a tug of
war between those different
forces,” said Kristina Hooper,
chief global market strategist
at Invesco. “That is likely to
continue for some time.”
The Dow closed down
380.83 points, or 1.5%, at
25029.20, after earlier rising
as much as 166 points. The
S&P 500 fell 30.45 points, or
1.1%, to 2713.83 and the Nasdaq Composite declined 57.35
points, or 0.8%, to 7273.01.
For the month, the bluechip index fell 4.3% and the
S&P 500 declined 3.9%, while
the Nasdaq ended down 1.9%.
Stocks opened higher
Wednesday as official data
showed that U.S. economic
growth had been revised
downward in the fourth quarter of last year, in line with
what economists expected.
High
S&P 500 sector performance in February
2
Close
B
Low
0
B
–2
B
–4
B
B
B
B
–6
B
B
B
–8
B
–10
B
–12
Tech
Financials
Consumer Industrials
discretionary
Number of times by month
the S&P 500 moved 1% in
either direction
Utilities
Health care
Top three gainers and losers
in February for the S&P 500
14 sessions
22%
CSRA
12
10
Under
Armour
8
TripAdvisor
20
4
2
0
0
2015 ’16
00
00
’17
000
’18
Real estate
Dow industrials, change
from the previous month
4
Energy
2.90
2.85
0
Apache
–2
–26
Devon
Energy
–4
–26
Newfield
Exploration
–6
The moves came after new
Federal Reserve Chairman Jerome Powell’s upbeat assessment of the economy a day
earlier had pushed the yield
on the benchmark 10-year U.S.
Treasury note back near a
four-year high and sent the
S&P 500 and Dow down more
than 1%.
Some analysts think Mr.
Powell’s tenure will be marked
by higher market uncertainty.
Consumer
staples
2.95%
6%
2.80
2.75
2.70
2017
’18
Sources: FactSet (sectors, gainers/losers); Ryan ALM (Treasury); WSJ Market Data Group (moves, Dow industrials)
But markets turned lower at
midday, and losses for all
three indexes accelerated in
the final hour of trading for
the second consecutive session.
Other risky investments
such as oil also fell, while a
measure of expected swings in
the S&P 500, the Cboe Volatility Index, rose. U.S. crude fell
2.2% to $61.64 a barrel and
was down 4.8% in February.
Telecom
Yield on 10-year Treasury note
2
16
6
–24
Materials
The S&P 500 had 12 trading
days with moves of at least 1%
in either direction in February, its most since January
2016.
Roughly 35% of investors
now expect that the Fed will
raise interest rates at least
four times this year, compared
with about 28% a week ago,
according to CME Group data.
The central bank has previously projected three rate in-
February
THE WALL STREET JOURNAL.
creases for this year.
“People were so certain
about the future a few months
ago, you now have uncertainty
about what growth and inflation will do,” said François Savary, chief investment officer
at Geneva-based advisory firm
Prime Partners, who has taken
some risk off his holdings in
recent months. “Suddenly
people realize we are moving
into the late stage of the eco-
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Food Delivery Gets a New Threat
Companies that specialize
in helping you order takeout
food online have done a remarkable job delivering returns to shareholders. Now
they also need to deliver
meals to customers. Investors can expect lower margins in exchange for a stepup in growth.
GrubHub, Just Eat, Delivery Hero and Takeaway.com
are all listed owners of websites and apps that serve as
ordering platforms for restaurants. They make money
by charging restaurants a cut
of orders placed through
their platforms. The restaurants, for the most part, handle getting the food to the
customer.
It is a lucrative business.
Without employing much
capital, U.K. leader Just Eat
reported an operating margin of more than 20% in the
first half of last year. Shareholder returns have followed:
Shares have more than tripled since its 2014 listing.
But there is a threat to
this comfortable status quo:
Food-delivery specialists
such as Uber Eats and Deliveroo have built restaurant
marketplaces of their own,
while also handling the phys-
How About Takeout?
Share-price performance
150%
GrubHub
Just Eat
100
50
Nasdaq
Composite
0
–50
–100
2015
’16
Source: WSJ Market Data Group
ical delivery on behalf of restaurants.
Traditional platforms need
to invest in delivery or risk
having their lunch eaten.
This raises issues: Delivery is
a much more capital-heavy,
lower-margin business than
creating a marketplace. The
appropriate business model
for delivery also is open to
debate. Uber Eats and Deliveroo have grown rapidly
by recruiting workers in the
so-called gig economy. Regulators may be clamping down
on such practices, but meanwhile it may be hard for
’17
’18
THE WALL STREET JOURNAL.
other platforms to compete
cost-effectively. Scale and
network effects argue for
significant investment.
Getting into the delivery
game will massively expand
the market platforms by
plugging them into restaurants and larger chains that
don’t currently cater to remote diners.
In time, this could lead to
a much more profound disruption of the restaurant industry, as so-called cloud
kitchens, without the cost of
prime retail space, work exclusively for online orders.
Deliveroo has already pioneered this model with
kitchen lots for restaurants
to rent. Delivery Hero thinks
cloud kitchens are set to take
market share.
GrubHub, the leading U.S.
ordering platform, is arguably furthest ahead in taking
delivery seriously. In February, it signed a deal with
Yum Brands, owner of KFC,
Taco Bell and Pizza Hut, to
host franchisees on its platforms and help them with
deliveries. Intriguingly, the
agreement was cemented by
Yum taking a 3% stake in
GrubHub. The latter’s stock
jumped 27% on the announcement.
Just Eat and Takeaway.com, which is big in the
Netherlands and competes
fiercely with Delivery Hero
for dominance of the German
market, have been late to delivery. Just Eat’s new Chief
Executive Peter Plumb could
well announce a rethink of
the strategy alongside annual
results in March.
There is a way for the
takeout platforms to turn delivery into an opportunity.
But it will cost more than investors have grown to expect.
—Stephen Wilmot
OVERHEARD
Only in Hong Kong does
your tailor send you a reminder about a change in the
city’s corporate laws.
The tailor is Bonham
Strand, one Hong Kong’s
many custom suit makers,
and the city’s new law requires companies to disclose
who is actually in charge of
them.
“So many of our valued clients are involved in business,
we felt compelled to share
some important Hong Kong
Company Law information
with you,” the tailor wrote in
an email. The law takes effect on Thursday.
Unsaid in the law and in
the tailor’s email is that many
Hong Kong companies are
controlled by people from
mainland China and untangling the ownership structure
of some companies is almost
impossible.
Bonham Strand, whose
shop is visible from Hong
Kong’s iconic Mid-Levels escalator, isn’t being purely altruistic
Its sister company does
just this type of work for
companies.
No word on if they will do
a suit fitting while you wait.
Sky Is Limit for Price War Between Disney and Comcast
Media Might
Market value
Comcast
$250 billion
Disney
Fox
Sky
200
150
100
50
0
2013 ’14
’15
’16
Source: FactSet
THE WALL STREET JOURNAL.
’17
How high could Sky stock
go in a bidding war between
Walt Disney and Comcast?
Valuation is a poor guide
when big-picture strategy
meets asset scarcity.
Sky shares have jumped
22% to £13.48 ($18.79) since
the U.S. cable giant posted a
£12.50 bid. Investors seem to
be expecting a bump from
21st Century Fox, whose
longstanding offer for the
61% of Sky shares it doesn’t
already own was pitched at
£10.75 a share. Fox would
presumably need permission
from Disney, which has its
own bid for various Fox as-
sets, including Sky.
It makes sense for Disney
to give Fox the green light.
Disney boss Bob Iger has
called Sky one of Fox’s crown
jewels. The European pay-TV
leader would help Disney
grow abroad.
If Disney does come back
with a higher bid, Comcast
will need to decide how
much it needs Sky. Comcast
stock fell 7% Tuesday as investors registered their incomprehension at a $41 billion bet on what was
historically a satellite business. Investors had been expecting Comcast to use ex-
cess cash to buy back its
stock, which is much cheaper
than Sky’s.
Mr. Roberts seems to
think a larger, trans-Atlantic
customer base will give Comcast an advantage in countering the power of the emerging streaming giants. Sky is
the only dedicated pay-TV
company to serve the English-speaking markets of the
U.K. and Ireland that are
most attractive to U.S. media
groups. Fox’s deal makes
clear that it is up for sale.
Comcast probably can pay
more than Disney. It has bigger cash flows and could ex-
tract more savings. As primarily a content owner and
creator, Disney has little
overlap with Sky’s business.
Sky now trades at 13 times
earnings before interest,
taxes, depreciation and
amortization, compared with
10 times for Disney and eight
times for Comcast. Factor in
its outsize capital spending,
and Sky looks even more expensive. But given the financial muscle and strategic
worries of the bidders, this is
little barrier to a higher valuation. Sky investors look
lucky. They could get luckier
still.
—Stephen Wilmot
nomic cycle.”
On Wednesday, the 10-year
Treasury yield edged down to
2.870% from 2.910% Tuesday.
Yields fall as prices rise.
A key issue that analysts
are grappling with is the economic impact of President
Donald Trump’s tax cut. Stock
markets initially reacted positively to the new tax law—
which is seen as a boon for
corporate earnings—but investors are now treading
more carefully. They fear additional spending while unemployment remains at multiyear lows will stoke
inflation.
The Fed’s Mr. Powell suggested Tuesday that fiscal
stimulus was one of the reasons that could drive the Fed
to lift rates faster.
This could mean ending a
two-year stretch dubbed the
“goldilocks phase,” when
stocks were boosted by a combination of improving growth
and low inflation expectations, said Stéphane Monier,
chief investment officer at
Lombard Odier Private Bank.
“We go to a phase we call
‘overheating,’” added Mr.
Monier, who thinks stocks can
still deliver sizable returns
this year, but with greater
bouts of volatility.
Among individual stocks,
Amazon.com shares rose 47
cents, or less than 0.1%, to
$1,512.45 after reports that
the e-commerce giant has acquired Ring, a maker of video
doorbells, in a deal valued at
more than $1 billion.
Lowe’s was among the biggest decliners after the homeimprovement chain reported
weaker-than-expected fourthquarter results. Its shares fell
6.20, or 6.5%, to 89.59.
Elsewhere, the Stoxx Europe 600 declined 0.7%. At
midday in Tokyo Thursday,
Japan’s Nikkei was down 1.6%
amid weak commodities
prices after the oil-price drop.
The yen provided further
pressure, gaining against the
dollar.
WSJ.com/Heard
Spotify Has
To Change
Its Tune
Spotify is at risk of becoming a one-hit wonder.
The music-streaming giant
will be hard-pressed to justify its high valuation when
its shares start trading, potentially as soon as March.
Over the long term, it needs
to leverage its big user base
to diversify into profitable
areas.
About 90% of Spotify’s
revenue comes from the 71
million paying for subscriptions to its music catalog.
That has been a fast-growing
business, according to Spotify’s first IPO filing Wednesday. It also is an unprofitable
one. Nearly 80% of Spotify’s
revenue went out the door
last year in royalty and distribution costs, while R&D,
sales, marketing and other
operational costs consumed
more than what remained.
The losses aren’t due to
Apple’s entry into the business in mid-2015; Spotify still
has nearly twice as many
paying music subscribers.
But its average revenue per
premium user has slid 22%
over the past two years, in
part because it cut prices on
its family plans to match Apple’s offering.
Still, Spotify has done an
admirable job maintaining its
growth. Spotify added 23
million paid subscriptions
last year.
Over the long term, the
size of its platform gives
Spotify the potential to build
up alternative revenue
streams such as concert ticketing, advertising and artist
promotion. But in the near
term, investors will need to
grapple with how to value a
hugely popular service with a
high-cost business model.
Those who have been valuing
the company close to $20
billion in the private market
may still end up singing the
blues.
—Dan Gallagher
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