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The Wall Street Journal - March 16, 2018

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DJIA 24873.66 À 115.54 0.5%
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10-YR. TREAS. g 3/32 , yield 2.824%
HHHH $4.00
WSJ.com
FRIDAY, MARCH 16, 2018 ~ VOL. CCLXXI NO. 62
* * * * * *
OIL $61.19 À $0.23
GOLD $1,316.80 g $7.60
Pedestrian Bridge Collapses at College in Miami, Killing at Least 4
What’s
News
Business & Finance
P
uerto Rico bonds have
rebounded, reflecting
improvement in the island’s
economy and hopes for a
settlement with creditors. A1
Toys “R” Us’s decision to
liquidate has sent toy makers scrambling to find outlets to carry their wares. B3
Steve Wynn may seek to
sell his Wynn Resorts shares,
potentially setting off a scramble to control the firm. B3
Icann is preparing a significant tightening of its privacy standards in response
to new EU policies. B4
U.K. bank Coutts, a pillar
of the British establishment,
investigated alleged harassment of women at the firm. B1
The Dow rose 115.54 points
to 24873.66. The S&P 500
and Nasdaq ended lower. B11
Amazon’s Japanese unit
has come under antitrust
scrutiny for the second time
in as many years. B5
iHeartMedia filed for
chapter 11 after reaching an
accord with debtholders. B5
Alibaba is working on a
plan for a secondary stock
listing in China. B10
CRISTOBAL HERRERA/EPA/SHUTTERSTOCK
Nike said it had received
complaints about workplace
behavior and that its No. 2
executive has resigned. B1
AFTERMATH: A new pedestrian bridge, built with innovative construction techniques and not yet open to the public, collapsed Thursday
afternoon at Florida International University in Miami, smashing cars and leaving at least four people dead. A3
Puerto Rico Bonds Bounce Back
Brighter economic
outlook, prospects for
bankruptcy pact lift
value of island’s debt
President to
Oust McMaster
DOJ v. AT&T Looms Over U.S. Business
A pedestrian bridge in
Miami collapsed just days
after being installed,
crushing cars and killing
at least four people. A3
The House won’t “rubber stamp” a Senate banking bill, the financial-services chairman said. A5
A North Korean official
arrived in Sweden for talks
that could be a prelude to
a planned summit between
Trump and Kim. A6
A video appears to show
a deputy standing outside
the high school during the
Parkland, Fla., shooting. A3
Germany’s Merkel is set
to push back against French
President Macron’s plans to
overhaul the EU. A7
Most European nations
failed to meet a 2% target
for military spending. A7
CONTENTS
Business News B3,5-6
Crossword.............. A10
Heard on Street. B12
Life & Arts....... A10-11
Mansion.............. M1-12
Markets............. B11-12
Opinion.............. A13-15
Sports........................ A12
Streetwise................. B1
Technology............... B4
U.S. News............. A2-5
Weather................... A11
World News....... A6-8
>
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
involved in the negotiations
said.
Despite signs of progress,
living conditions remain difficult in Puerto Rico. The U.S.
territory was contending with
economic decay, government
mismanagement and excessive
debt even before two hurricanes struck the island last
year. About 60% of children on
the island lived below the poverty line in 2015, according to
data from the Pew Research
Center.
The bond rebound this year
rewards fund managers who
stuck with Puerto Rico even
when prices fell as much as
Please see DEBT page A5
Top Performer
Bond index performance
S&P Municipal Bond Puerto Rico
& Defaulted
S&P Municipal Bond
Investment Grade
& High Yield
Ex Puerto Rico
S&P U.S.
Treasury
Bond
15%
10
5
0
Jan.
Feb.
–5
March
Trump Firm
Subpoenaed
President’s company turns
over documents to special
counsel in Russia probe.... A4
Source: S&P Dow Jones Indices
Trial over Time Warner deal has broad ramifications for antitrust enforcement across industries
BY BRENT KENDALL AND DREW FITZGERALD
WASHINGTON—The government accuses the company’s chief executive of
behaving like the disingenuous Captain
Renault in the film “Casablanca.” The
company likens the government’s case
to a shaved Persian cat, “pale and thin.”
A federal judge in Washington, D.C.,
next week will hear a case that may
settle one of the biggest antitrust issues of modern times.
The face-off, between the Justice
Department and AT&T Inc. over the
company’s $85 billion agreement to
buy media giant Time Warner Inc., has
broad ramifications for media, technology and other industries as well as for
the government’s powers to deter
large-scale corporate consolidation.
REUTERS
Trump insisted that the
U.S. is at a trade disadvantage with Canada, an assertion Ottawa denies. A5
WASHINGTON—The Trump
administration slapped Moscow with its first sanctions for
meddling in the 2016 presidential campaign and waging
unrelated cyberattacks on critical U.S. infrastructure, punishing the Kremlin’s intelligence agencies and Russians
already indicted by special
counsel Robert Mueller.
In sanctioning five entities
and 19 individuals Thursday,
the Treasury and senior national-security officials accused the Russian government
of ongoing attacks on the U.S.
energy grid, and water, aviation and manufacturing facilities. Senior U.S. national security officials said those attacks
gave Moscow access to the
control systems that run some
U.S. utilities and factories. Russia also targeted U.S. nuclear
facilities for cyberattacks.
The U.S. in addition cited a
cyberattack last year known as
NotPetya that crippled computer networks at multinational firms world-wide. And
the administration pointed to
the nerve-agent attack earlier
this month in the U.K. that left
a former Russia spy and his
daughter in critical condition.
Congress has expressed
growing concern about Russian aggression and the Trump
administration’s response to
Please see RUSSIA page A6
Debt from Puerto Rico is the
top-performing bond investment of 2018, reflecting an unexpected improvement in the
island’s economy and budding
hopes for a settlement with
creditors to resolve its bankruptcy.
Most U.S. bonds have lost
value this year because of rising interest rates, but an index
BY MATT WIRZ
Trump has decided to oust
McMaster as national security adviser, administration
officials said, but the timing of
his departure was unclear. A4
The administration is
preparing tariffs and other
anti-China measures in a
bid to pressure Beijing to
end tech-transfer rules. A6
U.S. Hits
Russia
For 2016
Meddling
of Puerto Rico municipal bonds
has returned 13.8%, making it
the top performer out of 323
bond indexes maintained by
S&P Dow Jones Indices. Some
Puerto Rico bonds have more
than doubled in price since the
end of December.
The rally began in January,
when Puerto Rico’s government disclosed economic data
showing previous estimates of
the financial impact of Hurricane Maria were overly pessimistic. More recently, investors have been buying bonds in
anticipation of substantive
talks with bondholders to
reach a consensual restructuring, bondholders and people
World-Wide
The Trump administration
slapped Moscow with its
first sanctions for electioncampaign meddling and
waging cyberattacks. A1
Mueller has subpoenaed
the Trump Organization
for documents related to
his Russia investigation. A4
YEN 106.33
BY IAN TALLEY
Tesla is entering a critical period in which it must
boost Model 3 production
or possibly face severe financial consequences. A1
A federal tax ruling dealt
a new blow to a group of
pipeline firms that had
helped finance a build-out
of energy infrastructure. B1
EURO $1.2306
President Trump has decided to
remove Lt. Gen. H.R. McMaster
as national security adviser. A4
Strawberry Jam: Japanese Curlers
Stumble Into Food Fight
i
i
It could determine whether antitrust
enforcers will have real practical authority to challenge so-called vertical
mergers involving two complementary
companies that operate at different levels of the same industry. Typically, the
government challenges unions of direct
competitors that sell similar products
and services, or horizontal mergers.
The ruling could affect major pending health-care mergers and may have
ramifications for the tech economy. If
the deal is allowed, AT&T argues, it
could act as a bulwark against the
power of digital media giants such as
Alphabet Inc.’s Google and Facebook
Inc. Or it could create an entertainment behemoth that holds consumers
hostage, as the government insists.
The outcome could also affect how
INSIDE
i
Athlete’s praise for Korean fruit left
a sour taste at home; $6.75 a berry
BY ALASTAIR GALE
AND MIHO INADA
women’s curling team had won
a bronze medal at the Games,
but during the competition,
AOMORI, Japan—The finest they had praised Korean strawstrawberries from all over berries as a midgame snack.
To some ears back home,
Japan were stacked high at a
sports center here on Tuesday: the words were equivalent to
the Super Deluxe Tochigi blowing a raspberry. Japanese
stores sell at least
Maiden,
Red
a dozen homeCheeks, the Skygrown varieties of
berry
and
the fruit, all with
the world’s heavidifferent qualities
est, the Sweet King.
of sweetness, tex“So sweet!” said
ture, color and
Olympic curler Satsize, including the
suki Fujisawa as
Scent of First Love,
she took a bite
which is white but
from one while
still sweet, and the
cameras
flashed
Love Berry, which
from the assembled
A strawberry
is as big as a
media at the event
child’s hand and
ahead of a tournavery juicy.
ment.
Fruit relations are prickly
Once again, she carried the
weight of national pride on her because farmers say Korean
berries are actually Japanese
shoulders.
Just last month, Ms. Fuji- varieties caught up in a bruisPlease see BERRY page A9
sawa and the Japanese
strongly the Trump administration,
with its rival populist and pro-business
factions, pursues the kind of vigorous
antitrust enforcement that was a hallmark of the Obama administration.
The battle is unusual because AT&T
and Time Warner aren’t head-to-head
competitors. They want to combine
AT&T’s video-distribution network with
Time Warner’s content—from HBO’s
“Game of Thrones” to the NCAA basketball tournament—in a move to integrate
different links in the same supply chain.
“This will be the first court decision
on a vertical merger in a very long
time,” said Wayne State University law
professor Stephen Calkins, “and what
the court says will be terribly important.”
Please see AT&T page A9
Tesla Faces Crunch
As Cash Hoard Thins
BY TIM HIGGINS
AND SUSAN PULLIAM
AGENTS’ GREAT
DEALS—FOR
THEMSELVES
MANSION, M1
DELUSIONS
OF WAR IN
‘JOURNEY’S END’
LIFE & ARTS, A10
SAN FRANCISCO—Tesla Inc.
is entering one of the most
critical phases in its history, a
make-or-break period in which
the electric-car maker must
boost production of its new
Model 3 or possibly face severe
financial consequences.
In April, Tesla will reveal
whether it is on track to meet
an ambitious second-quarter
target of assembling 5,000
Model 3s a week—a goal that it
already twice delayed. The
Model 3 is Tesla’s first mainstream offering, priced more affordably than its luxury models,
and an important part of
founder Elon Musk’s strategy to
broaden the brand’s business.
Meeting the goal of 5,000
Model 3s a week by the end of
June is crucial to generating
enough cash to sustain operations without having to raise
more capital.
Tesla burned through about
$1 billion a quarter last year on
average, largely because of
heavy investments to bring
production of the Model 3 online. That left it with nearly
$3.4 billion in cash at year’s
end, suggesting that at a similar pace it would run out of
cash later this year unless it
can raise more funds or substantially boost production at
its Fremont, Calif., plant.
UBS analyst Colin Langan
projects Tesla will continue to
burn cash until it reaches the
5,000-a-week inflection point
for a quarter, a milestone that
he calculates would generate
about $1 billion in working capital in the short term.
If Tesla can’t meet the goal,
it will face greater pressure to
raise money from the debt or
equity markets, which could be
challenging if investors lose
confidence in the company.
Tesla says it has $2 billion in
unused credit facilities and
funds, though some of the capital is subject to specific conditions for use. However, it also
faces higher interest payments
tied to $10 billion in debt and
Please see TESLA page A4
.
THE WALL STREET JOURNAL.
A2 | Friday, March 16, 2018
U.S. NEWS
BY DAVID HARRISON
Water bills are surging nationwide as utilities try to fix
corroded pipes and overflowing sewer systems, leaving
many households struggling to
pay and in some cases risking
shutoffs and foreclosures.
Bills started rising significantly faster than inflation in
the mid-2000s as communities
stepped up their repairs of aging water and sewer infrastructure. In the past decade,
increases have averaged 5.5% a
year, more than three times
the rate of inflation, according
to the Labor Department.
The median household bill
for water and sewer service
rose to $77 a month in 2016
from about $44 in 2006, a 75%
increase, according to surveys
by the American Water Works
Association, a group representing water providers. Business and industrial customers
saw similar increases during
that time.
In Baltimore, bills have
climbed at least 9% a year
since 2009 to build underground storage tanks and replace leaky pipes. Baltimore is
also one of dozens of municipalities bound by pacts with
the Environmental Protection
Agency to comply with Clean
Water Act rules limiting the
amount of sewage discharged
into waterways. The city has
agreed to a 13-year, $1.6 billion
to $2 billion sewer upgrade.
C. Rochelle Williams, 37
years old, a mother of four in
Baltimore who makes $50,000
a year as a medical billing specialist, said she can’t cover her
full bill, which averages
around $120 a month, about
six times what she paid when
Sticker Shock
Change in consumer price
indexes since 1986
All items
400%
Water and
sewer services
300
200
100
0
–100
1986 1990
2000
2010
Source: Labor Department
THE WALL STREET JOURNAL.
she moved into her house 16
years ago. “I usually try to pay,
like, $50 a month,” she said.
The U.S. needs to spend
$655 billion over the next 20
years to upgrade water and
sewer systems, the EPA estimates. Around 240,000 water
mains break a year.
For decades, water companies put off making repairs to
keep prices low, creating public expectations of cheap water, said Jonathan Cuppett, research manager at the Water
Research Foundation, an industry research group. “We’re
moving towards those days being over,” he said.
Most Americans get their
water from one of the 52,000
municipal water utilities in the
country. Some are government
agencies, others are independent, public agencies. About
15% of customers get their water from private operators, according to Manuel Teodoro, a
political scientist at Texas
A&M University.
Sometimes,
the
same
agency provides both water
and sewer service. Other
times, the responsibilities are
split. Most of the typical
household water bill reflects
the amount of water consumed. The rest covers fixed
costs such as meter reading,
billing, infrastructure and environmental fees.
Utilities’ funding comes almost entirely from their customers, with the U.S. government providing just about 4%
of the total. The Trump administration in February proposed
increasing federal spending on
infrastructure by $200 billion,
but it is unclear how much of
that would go to water and
sewer upgrades.
In Kansas City, Mo., officials
agreed to complete 121 sewerimprovement projects over 25
years, costing $4.5 billion.
Sewer fees are set to rise 13%
annually in the coming years.
“To be able to afford those
projects, from the department’s perspective, we have to
have our rates considerably
higher for a period of time,”
said Terry Leeds, director of
the city government’s water
department.
Customers unable to pay
rising bills can see their service shut off. While there are
no national data on shutoffs,
some utilities say their numbers are rising. Kansas City
said it shut off 18,333 accounts
last year, up from 15,196 in
2014, and officials expect
around 19,000 this year.
Forecasters
Fret Over
Trade Rifts
Escalating
BY BEN LEUBSDORF
KDFW/ASSOCIATED PRESS
TOXIC FIRE: A blast at a Tri-Chem Industries plant in Cresson, Texas, was sparked by a worker dragging
his foot on a factory floor, officials believe. Rescuers were evacuated due to a risk of another explosion.
New Cosby Trial Comes
Amid #MeToo Era Shift
BY KRIS MAHER
A judge ruled Thursday that
five additional women can testify at Bill Cosby’s upcoming
trial in Pennsylvania on
charges of sexually assaulting
a woman in 2004, marking the
first time in the #MeToo era
that a celebrity will face multiple accusers in a courtroom.
The three counts of aggravated indecent assault against
the comedian and star of the
1980s television hit “The
Cosby Show” remain the same
from this past June when his
first trial ended in a hung jury
and mistrial.
But attitudes about sexual
assault have shifted since October when accusations of sexual misconduct by movie mogul Harvey Weinstein gave rise
to a movement. Mr. Weinstein
has admitted mistakes but denied allegations of nonconsensual sex.
Legal experts said the inclusion of additional accusers
would make Mr. Cosby’s defense more difficult the second
time around.
“The climate is so much
more accepting of victims’ stories than it was even a year
ago,” said Wes Oliver, a law
CORRECTIONS AMPLIFICATIONS
A Page One photo that appeared in some editions
Tuesday showed bystanders
outside a home in Austin,
Texas,
where
a
bomb
wounded a woman. A photo
below it was of authorities
responding earlier in the day
at the scene of an explosion
that killed a 17-year-old boy.
The caption incorrectly transposed the locations of the
two photos.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
DOMINICK REUTER/REUTERS
Rising Water
Bills Squeeze
Homeowners
One Missing, Two Hurt in Chemical-Plant Explosion
Bill Cosby’s retrial is April 2.
professor at Duquesne University in Pittsburgh.
Prosecutors sought to have
19 women who have alleged
Mr. Cosby assaulted them testify to establish a pattern of
“bad acts” at his retrial scheduled to begin April 2 near Philadelphia.
On Thursday, Judge Steven
T. O’Neill ruled that prosecutors could select five women
from the 19 to testify. In June,
the judge had permitted one
additional accuser to testify of
13 that prosecutors had tried
to include.
Prosecutors and Mr. Cosby’s
defense team declined to comment for this article. Each
count against Mr. Cosby carries a maximum penalty of 10
years in prison.
Mr. Cosby’s attorneys argued this week in court filings
that the additional accusations
weren’t legally admissible under rules of evidence and
would unfairly prejudice the
jury. They noted that some alleged assaults date to the
1960s and would now be hard
to defend against.
“This trial is about one issue—what occurred between
Mr. Cosby and Ms. Constand
during one night,” Mr. Cosby’s
lawyers wrote in a court filing
Tuesday. The case is “not
about broader social issues impacting other people in other
circumstances.”
Prosecutors say the 80year-old Mr. Cosby drugged
and sexually assaulted former
Temple University employee
Andrea Constand in his home
outside Philadelphia in 2004.
Ms. Constand, 44, met Mr.
Cosby while he was a member
of the Temple board of trustees.
Mr. Cosby has said he had a
consensual sexual relationship
with Ms. Constand and that he
is innocent of the charges. On
the night of the alleged assault, he said he gave her three
Benadryl pills. Ms. Constand
said the pills incapacitated her.
Economists estimate President Donald Trump’s steel and
aluminum tariffs will reduce
U.S. employment modestly, but
increasingly worry that foreign-trade disputes could escalate and damage the U.S. economy.
Forecasters surveyed in recent days by The Wall Street
Journal continue to expect
solid economic growth this
year but see rising odds that it
will come in below expectations. Just over half said risks
were tilted to the downside,
jumping from 30% in February
and the highest share since
September. Even generally optimistic economists cited trade
policy or protectionism as
risks to the outlook.
“With everything looking
better coming into the year,
trust politics to risk messing it
all up,” Scotiabank economist
Derek Holt said.
Most forecasters said the
25% tariff on imported steel
and 10% tariff on imported aluminum that Mr. Trump, a Republican, authorized last week
would reduce overall employment in the U.S., as gains in
the domestic steel and aluminum industries would be outweighed by losses in sectors
that purchase those metals.
The average change in net
employment expected because
of the tariffs was about 53,000
jobs lost—a relatively modest
number in an economy that
added nearly 2.2 million nonfarm jobs during 2017.
The economists predicted a
larger effect if other countries
retaliated with limited tariffs:
about 137,000 jobs lost on average. If retaliation escalated,
raising global barriers to levels
last seen in the early 1990s,
the economists on average saw
845,000 jobs lost.
Nevertheless, the near-term
outlook for the U.S. economy
remained rosy in this month’s
survey. The average prediction
for gross-domestic-product
growth in 2018 was 2.9%.
Meanwhile, economists this
month nudged higher their
forecasts for how much the
Federal Reserve will raise
short-term interest rates this
year to keep inflation under
control as the economy
strengthens.
Economists, on average,
forecast the Fed’s benchmark
federal-funds rate will end the
year at 2.25%. Policy makers
raised the fed-funds rate in December to a range between
1.25% and 1.5%.
—David Harrison
contributed to this article.
U.S. WATCH
ECONOMY
New Jobless Claims
Declined Last Week
The number of Americans filing applications for new unemployment benefits decreased last
week, signaling continued health
in the labor market.
Initial jobless claims, a proxy
for layoffs across the U.S., fell by
4,000 to a seasonally adjusted
226,000 in the week ended
March 10, the Labor Department
said Thursday. This matched expectations of economists surveyed by The Wall Street Journal.
Weekly jobless claims have
THE WALL STREET JOURNAL
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held below 300,000 for about
three years, the longest streak
since 1970—when the U.S. population was far smaller than it is
today.
Jobless claims data can be
volatile from week to week. The
four-week moving average, a
steadier measure, fell by 750 to
221,500 last week.
The overall labor market remains broadly healthy. The unemployment rate has been
parked at 4.1%, a 17-year low, for
the past five months, and the
U.S. economy added 313,000
jobs in February, the largest
monthly gain since July 2016.
—Sharon Nunn
FDA
Officials Aim to Curb
Nicotine in Cigarettes
U.S. health officials took the
first concrete steps toward cutting the nicotine content in cigarettes to nonaddictive levels,
opening a public inquiry ahead of
proposed regulations to lower
nicotine levels.
The Food and Drug Administration said Thursday it is reviewing current science on the
role nicotine plays in addiction.
“This new regulatory step advances a comprehensive policy
framework that we believe could
help avoid millions of tobacco-related deaths across the country,”
said FDA Commissioner Scott
Gottlieb.
The agency cited data published in the New England Journal of Medicine on Thursday
that showed capping nicotine
could help about five million additional adult smokers quit
smoking within one year of implementation. By 2100, the analysis estimates, smoking rates
could drop from the current 15%
to as low as 1.4%.
Tobacco use kills more than
480,000 Americans each year,
according to the FDA.
—Saabira Chaudhuri
ALABAMA
Hospital Shooting
Tied to Job Dispute
A job-related dispute led a
health-care worker to open fire
inside a hospital, killing one person and critically injuring another before fatally shooting
himself in the head, authorities
said Thursday.
The shooting took place
Wednesday night inside UAB
Highlands, which is affiliated with
the University of Alabama at Birmingham. A UAB spokesman said
the gunman, identified by police
as 31-year-old Trevis Coleman of
Birmingham, worked for UAB, as
did Nancy Swift, a 63-year-old
nursing manager who was killed.
The critically wounded shooting victim worked for Steris, a
contractor who manages the hospital’s sterile supplies.
Lt. Peter Williston, a spokesman for the Birmingham Police
Department, said investigators
were still sorting out what had
occurred, but “we do know it was
an employee-relations issue.”
—Associated Press
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | A3
* * * *
U.S. NEWS
New Pedestrian Bridge Collapses in Miami
and smashed cars.
Eight cars were crushed under the bridge, which was installed less than a week ago,
and nine people were taken to
local hospitals, fire officials
said. Two patients were in
critical condition, according to
Dr. Mark McKenney of Kendall
Regional Medical Center.
“We are in full search-andrescue mode,” Maurice Kemp,
deputy mayor of Miami-Dade
County, said at a press conference. Mr. Kemp said authorities had four cranes working
Location of
collapsed bridge
The
E v e rg la d e s
Sweetwater
8th St.
Florida International
University
MIAMIDADE CO.
MICHAEL LAUGHLIN/TNS/ZUMA PRESS
By Elizabeth Bernstein,
Scott Calvert
And Valerie Bauerlein
at the site, as well as dogs and
urban search-and-rescue specialists scouring the rubble.
Officials made clear the
death toll could rise as rescuers gain access to the rubble.
“We’re probably going to come
out with a sad outcome for
many in our community,” said
Miami-Dade Police Chief Juan
Perez.
The $14.2 million bridge
crossed Miami’s Southwest
Eighth Street, connecting FIU’s
campus to the town of Sweetwater. Put in place on Saturday, its main span—174 feet
long, and weighing 950 tons—
was expected to be opened for
foot traffic next year.
Steven Ippoliti, a meteorologist for the National Weather
Service in Miami, was driving
toward the bridge when he
saw it go down. “I was just
kind of like in shock,” he said
in a phone interview. “It was
there one second and the next
it was down on the road, with
dust flying.”
Ronald Reagan Turnpike
MIAMI—A new pedestrian
bridge at Florida International
University that was at the vanguard of innovative construction techniques collapsed
Thursday afternoon, leaving at
least four people dead and
others injured on a once-busy
road left strewn with concrete
95
Miami
University
Park
5 miles
FLA.
5 km
Detail
THE WALL STREET JOURNAL.
Officials warned that the death toll from the collapse could rise.
The National Transportation Safety Board dispatched a
team to investigate.
Florida Gov. Rick Scott, appearing with local officials,
promised a thorough investigation. “If anyone has done
anything wrong, we’ll hold
them accountable,” he said.
Zee Junia, a 19-year-old FIU
sophomore was on campus
when he got an alert about police activity on campus on his
phone and saw friends talking
about the collapse on social media. He said he was shaken by
the events and noted the bridge
had been put up very fast.
“How can they do something that quickly,” he said.
“This is just really scary. Buildings shouldn’t be put up in a
rush.”
The pedestrian bridge was a
prominent example of a technique called accelerated bridge
construction, a focus of re-
search at FIU. Built as part of a
$19.4 million federal transportation grant, it was celebrated
Saturday as its main span was
lifted from temporary supports
and rotated 90 degrees across
an eight-lane road known as
Tamiami Trail.
On Thursday, FIU President
Mark B. Rosenberg said, “This
bridge was about goodness,
not sadness. Now we’re feeling
immense sadness, uncontrollable sadness.” He said the university was working with authorities to assist in rescue
efforts.
Mr. Rosenberg said the
bridge underwent testing on
Thursday, and the fire chief
said construction workers
were on the bridge when it
collapsed.
The firms involved in the
construction and design, FIGG
Bridge Engineers Inc. and Munilla Construction Management, released statements saying they would cooperate with
the investigations.
Firms Want What Amazon Is Getting Sheriff Releases Video
U.S. cities vying for Amazon.com Inc.’s second headquarters risk facing an unexpected consequence to victory:
Other companies will demand
the same hefty tax breaks conferred on the online retail giant.
Already, some companies
with a presence in the finalist
cities are calling for similar
tax breaks from elected officials. It is a pitfall that often
accompanies large tax incentive packages used to lure employers to a state.
In Washington, D.C., a
group of tech companies wrote
last week to the city’s mayor
with a detailed list of requests—from training bonuses
to property tax breaks—that
the city is reportedly offering
to Amazon. JPMorgan Chase
& Co. Chief Executive James
Dimon recently said that he
plans to call up the governor
from the winning city and demand a similar deal. Finalist
cities like Dallas, Chicago and
Columbus, Ohio, are all places
where JPMorgan already has
tens of thousands of employees, Mr. Dimon said.
“The last company that
needs perks is Amazon,” said
Dan Berger, chief executive of
the Washington, D.C.-based
Social Tables, a hospitality
software company that employs about 120 people. “We
believe we should get those
kinds of benefits as well.” A
spokeswoman for the city said
it was in discussions with the
group of tech firms.
“Economic incentives are
subject to the reverse potato
chip rule: You can’t hand out
Neighborhood Bank
The tax subsidy offers from Newark, N.J., and Maryland for Amazon's
second headquarters rank among the biggest tax incentive packages
for corporate investment.
$0 billion
2
4
6
8
10
Boeing (Wash.)
Amazon* (N.J.)
Alcoa (N.Y.)
Amazon* (Md.)
Foxconn (Wis.)
Boeing (Wash.)
General Motors (Mich.)
Ford Motor (Mich.)
Sempra Energy (La.)
Nike (Ore.)
*Proposed. Note: Figures for previous deals are as of Oct. 2017.
Sources: Good Jobs First (previous deals); Maryland and New Jersey
governor's offices, Newark mayor's office (Amazon offers) THE WALL STREET JOURNAL.
just one,” said Timothy Bartik,
an economist at the Kalamazoo, Mich.-based W.E. Upjohn
Institute for Employment Research.
Seattle-based Amazon announced in September it was
searching for a second headquarters to house as many as
50,000 new employees with
investments that could total
more than $5 billion over
nearly two decades. More than
200 cities and regions applied
and it narrowed the list to 20
metro areas in January. Amazon is now conducting site visits.
Amazon has said incentives
will factor in to where the
company locates. Newark and
New Jersey have proposed a
combined $7 billion, while
Maryland’s governor has put
$5 billion on the table.
Aisha Glover, president and
chief executive of the Newark
Community Economic Devel-
opment Corporation, said the
city hopes other businesses
will take advantage of new
legislation offering hefty tax
breaks to companies.
“We definitely intend to use
the legislation to attract other
large-scale job creation projects,” Ms. Glover said.
Andrew Trueblood, who
works on economic development for Washington Mayor
Muriel Bowser, said the city
hands out incentives when
companies can show a strong
financial return to the district.
“We want to see three to
four times the tax revenues to
whatever we put in,” he said.
State officials can find
themselves in a tricky situation after handing out big tax
breaks to newcomers. There
may be political pressure for a
state to pay for jobs it already
has.
The state of Wisconsin
faced a similar conundrum
when it announced in July
that it was offering a $3 billion tax incentive package to
Taiwan’s Foxconn Technology
Group. The company plans to
invest $10 billion to build a 20
million-square-foot campus
that could employ up to 13,000
people.
After paper products maker
Kimberly-Clark Corp. said in
January it would be shuttering
two Wisconsin plants employing 600 people, Wisconsin
Gov. Scott Walker said he
would give the firm the same
percentage tax break as Foxconn if the plants stayed open.
A spokesman for KimberlyClark said the company appreciated the governor’s efforts
and was negotiating with its
union about the proposed incentives.
Trying to retroactively
match deals for existing companies could be tricky, said
Greg LeRoy, executive director
of Good Jobs First, a Washington-based group opposed to
tax incentives. In Wisconsin’s
case, for example, Mr. Leroy
said it could turn into a game
of “whack a mole.” “There’s
lots of big employers in Wisconsin,” he said.
Mark Maley, a spokesman
for the Wisconsin Economic
Development
Corporation,
which arranged the deal, said
it made sense for Wisconsin as
a leader in the paper industry.
But Mark Sweeney, a senior
principal with McCallum
Sweeney Consulting, said
matching tax deals for existing
firms “has a lot of political
weight. It doesn’t necessarily
have a lot of economic
weight.”
—Emily Glazer
contributed to this article.
Of Deputy at School
BY JON KAMP
A video released Thursday
appears to show a sheriff’s
deputy standing outside a
Marjory Stoneman Douglas
High School building in Florida for several minutes during
a gunman’s rampage that left
17 people dead last month.
The Broward County Sheriff’s Office, which distributed
the footage after a judge ordered its release, said it depicted the actions of former
Deputy Scot Peterson as the
shooting unfolded.
Sheriff Scott Israel has said
Mr. Peterson should have confronted accused shooter Nikolas Cruz in the building, while
Mr. Peterson has defended himself by saying he properly took
position for what he thought
were shots being fired outside.
The footage shows a figure
the sheriff’s office has identified as Mr. Peterson approaching Building 12, the scene of
the Feb. 14 shooting, about two
minutes after the sheriff’s office says the shooting started.
The figure remains there for
the nearly four additional minutes the sheriff’s office has
said the shooting took place.
The video shows a narrow,
and partially obstructed, view
of what occurred on the highschool campus as the shooting
unfolded. Mr. Peterson was accompanied by a man who is
likely the school’s security
specialist, according to a prior
description from Mr. Peterson’s attorney.
“The video speaks for itself,”
the sheriff’s office said. “After
being suspended without pay,
Peterson chose to resign and
immediately retired rather than
face possible termination.”
Mr. Peterson’s attorney, Joseph DiRuzzo, couldn’t be
reached to comment. Last
month, he said that his client
was confident the video, together with eyewitness testimony, would exonerate him.
The Broward County Sheriff’s Office is facing scrutiny
over its response to the shooting and handling of warnings
about Mr. Cruz beforehand.
BROWARD COUNTY SHERIFF’S OFFICE/REUTERS
BY SHAYNDI RAICE
AND LAURA STEVENS
The Florida sheriff has said Deputy Scot Peterson, right, should
have confronted the shooter inside the school. Mr. Peterson has
said through a lawyer that he believed shots were fired outside.
OFFICINE GENERALE
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THE WALL STREET JOURNAL.
U.S. NEWS
Trump Plans to Oust Adviser McMaster
President doesn’t yet
have replacement in
mind; senator lobbies
for Sessions to remain
Washington prepared for
further change in President
Donald Trump’s administration, as national security adviser H.R. McMaster’s position
appeared increasingly precariBy Rebecca Ballhaus,
Aruna Viswanatha
and Michael C. Bender
ous and a series of staff departures prompted a U.S. senator
to publicly urge the president
not to fire his attorney general.
Mr. Trump has decided to
oust Lt. Gen. H.R. McMaster
and has conveyed that decision to John Kelly, his chief of
staff, according to administration officials. The timing of a
departure was unclear, with
one official saying it could
happen “imminently” and another saying it could be weeks,
even months.
Mr. Trump doesn’t yet have
a replacement in mind, and is
unlikely to force a departure
before he has one, the officials
said. The president wants a
more graceful exit for his national security adviser than he
afforded Rex Tillerson, the
former secretary of state he
fired via Twitter earlier this
week, one official said.
White House press secretary Sarah Huckabee Sanders
tweeted Thursday evening
that she had spoken to the
president and his national security adviser and that “contrary to reports they have a
good working relationship and
there are no changes at the
[National Security Council].”
Gen. McMaster attended a
White House event Thursday
evening honoring the Irish
prime minister and joked with
reporters there, including responding to one question that
appeared to touch on his future by asking: “Have you
heard anything?”
The military is actively
looking for a new job for Gen.
McMaster, but it could take
time to find a suitable position, U.S. officials said.
In recent days, Mr. Trump
began discussing potential
successors for Gen. McMaster,
according to former Trump
administration officials. Mr.
Trump met last week with
John Bolton, the former U.S.
ambassador to the United Nations, who has openly discussed his interest in the national security post.
Mr. Trump was expected to
speak with other potential replacements this weekend, the
former officials said, including
Stephen Biegun, an executive
at Ford Motor Co., who previously served on the National
Security Council. The presi-
FBI Official’s
Future at Issue
Questions have arisen over
the status of another top
Washington official. Andrew
McCabe, who was told to leave
his post as deputy director of
the FBI earlier this year, may
be fired ahead of his expected
retirement from the bureau on
Sunday, according to people familiar with the matter.
Mr. McCabe was meeting
dent’s plan to oust Gen. McMaster was reported by the
Washington Post on Thursday
evening.
Mr. Trump on Thursday
played down predictions of a
shake-up coming, but previewed some further changes.
“There will always be
change, but very little,” he
Thursday with staffers in
Deputy Attorney General Rod
Rosenstein’s office in a lastditch attempt to avert his dismissal for allegedly not being
forthcoming in an internal investigation, one of the people
said.
White House press secretary Sarah Huckabee Sanders
said decisions about Mr. McCabe’s status should be left to
the Justice Department but
that the White House did acknowledge “some cause for
concern.”
said. “I think you want to see
change. I want to also see different ideas.”
The president’s constant
criticism of Jeff Sessions has
prompted speculation that the
attorney general could be
among the next targets, drawing pushback from the chairman of the Senate Judiciary
Committee on Thursday.
Sen. Chuck Grassley (R.,
Iowa) said he “would not be
comfortable” if Mr. Trump
fired the attorney general. Mr.
Grassley would oversee the
process for confirming a new
attorney general, so his concern is significant.
On Thursday, in response
to a question about whether
Environmental
Protection
Agency Administrator Scott
Pruitt could become Mr.
Trump’s new attorney-general
nominee, a possibility that
some have floated, Mr. Grassley said: “That’s speculation. I
don’t even know whether
that’s the real world.” He said
he had had no conversations
with the White House about
Mr. Pruitt.
Mr. Trump’s advisers have
warned the president for
months against firing Mr.
Sessions, according to people
familiar with the conversations.
FROM LEFT: KAT RUSSELL/THE PADUCAH SUN/ASSOCIATED PRESS, GAGE SKIDMORE/PLANET PIX/ZUMA PRESS
Mueller
Subpoenas
Trump
Company
BY REBECCA BALLHAUS
At left, Senate Majority Leader
Mitch McConnell and his wife,
Transportation Secretary Elaine
Chao, are among the people
whose families Peter
Schweizer, above, alleges were
targeted by Beijing.
Author Alleges Chinese Influence Campaign
BY ARUNA VISWANATHA
The author of a book that
fueled an FBI investigation into
the Clinton Foundation now is
taking aim at two new targets—
the families of Senate Majority
Leader Mitch McConnell and
former Vice President Joe Biden.
In a new book, “Secret Empires: How the American Political Class Hides Corruption and
Enriches Family and Friends,”
conservative author Peter
Schweizer argues that China
has worked to gain leverage
over powerful American politicians by targeting their families
with investment opportunities
and business deals, providing
hundreds of millions of dollars
in business to companies run by
the families of Messrs. Biden
and McConnell.
Aides to both men disputed
the accuracy of Mr. Schweizer’s
findings, calling them “wild accusations” without “credible
sourcing” and “politically motivated hit pieces.”
Lawmakers and government
officials are required to disclose
information about their financial dealings but not those of
TESLA
Continued from Page One
increased costs associated with
the production ramp-up.
Since going public in 2010,
Tesla has used about $10 billion in cash, an unusually large
sum for a publicly traded U.S.
company of its size, said Bernstein analyst Toni Sacconaghi.
Tesla has a market capitalization of roughly $57 billion.
Barclays analyst Brian Johnson expects Tesla to raise more
money in the third quarter if it
proves it can build 5,000 Model
3s a week—a rate equating to
roughly 250,000 vehicles in a
single year, about what a typical
automotive factory produces.
Mr. Musk told attendees at
the recent South by Southwest
festival in Texas that two things
keep him up at night: an apocalyptic future created by artificial
intelligence—and production delays of the Model 3. He said
Tesla is “making good progress”
their extended families, and Mr.
Schweizer argues China has
tried to exploit that provision.
The book is being published
March 20 by HarperCollins,
which is owned by News Corp,
which also owns The Wall
Street Journal. It comes as U.S.
officials have expressed concerns about China’s efforts to
target
President
Donald
Trump’s son-in-law and senior
adviser, Jared Kushner, and his
wife, Ivanka Trump, who have
business dealings in China.
Counterintelligence officials
have worried for years about
China’s efforts to cultivate relationships with family members
of those in power through business dealings, and they have
warned senior officials to be
mindful of such relationships,
according to people familiar
with the briefings.
A representative at the Chinese Embassy in Washington
didn’t respond to a request for
comment about the claims in
Mr. Schweizer’s book.
Mr. Schweizer points to what
he claims is evidence of a close
relationship between Foremost
Group, the shipping company
run by the family of Transportation Secretary Elaine Chao,
“While he makes some wild
accusations, they’re not backed
by any credible sourcing—
which makes sense, as they are
inaccurate,” McConnell spokesman David Popp said of Mr.
Schweizer.
A Transportation Department spokeswoman said Ms.
Chao has had no involvement
with her family’s business for
more than four decades, and
called the claims “spurious and
on Model 3 production.
He is grappling with these
challenges after losing a number of financial executives. In
recent days, Tesla’s chief accounting officer and treasurer
both left, following last year’s
exit of the financial chief and
last month’s departure of the
top sales executive. Tesla declined to make Deepak Ahuja,
who rejoined the company as
chief financial officer last year,
available to comment.
Mr. Musk has repeatedly defied the odds. At SXSW on Sunday, he recounted how Tesla
nearly went into bankruptcy in
2008 when money ran tight.
Although many investors over
the years bet against the stock
through short sales, he proved
Tesla could build a global luxury brand of electric cars with
a devoted following beyond environmentalists.
But Tesla is no longer a
startup. It is a 38,000-person
company that is trying to compete with the world’s largest
auto makers. Mr. Musk has es-
chewed operating profit and
racked up debt as he chases his
dream of making a mainstream
electric sedan.
Mr. Musk earlier pledged to
deliver 500,000 vehicles this
year, about five times last year’s
total. Analysts surveyed by
FactSet estimate, on average,
that Tesla might deliver a total
of 258,000 vehicles this year, including 157,000 Model 3s.
These hurdles have weighed
on Tesla’s stock. Its share price
has stalled since surging in
early 2017 to give it a market
value rivaling General Motors
Co. The stock has fallen about
14% since around the time it
began production of the Model
3 nine months ago.
“Some big investors are losing patience,” said Nathan
Weiss of Unit Economics, a research arm of investment firm
Weiss, Harrington & Associates
LLC, which has a bearish bet on
Tesla but doesn’t own shares.
“They are less excited about it
than they were a year ago.”
Some investors are watching
and Beijing. The author argues
that Mr. McConnell, who is Ms.
Chao’s husband, has softened
his views on China as that relationship grew.
A spokesman for Mr. McConnell rejected that conclusion,
pointing to Senate floor statements in which Mr. McConnell,
a Kentucky Republican, referred
to China as an “aggressor state”
the U.S. must confront.
Schweizer claims
leverage is gained
from business deals
with politicians’ kin.
deliberately malicious.” Ms.
Chao and Mr. McConnell also
have no financial investment in
Foremost Group. A Foremost
representative didn’t respond to
requests for comment.
Mr. Schweizer also points to
what he claims is evidence of
close ties between the Chinese
government and Rosemont Seneca Partners, a now-closed investment firm that was owned
by Mr. Biden’s son, Hunter, and
the stepson of former Secretary
of State John Kerry, Christopher Heinz. Mr. Schweizer outlines investments that he says
came as Messrs. Biden and
Kerry were managing America’s
relationship with Beijing.
In December 2013, Mr.
Schweizer writes, Bank of China
set up a collaboration with
Rosemont Seneca with $1 billion in funds backed by the Chinese government.
A person familiar with the
firm disputed Mr. Schweizer’s
description of the relationship
between Rosemont Seneca and
a Chinese investment fund, and
said neither the firm nor
Messrs. Biden or Heinz “ever
received any payments” from
the Chinese investment fund. A
person close to Mr. Heinz said
Veering Off Course
Tesla’s shares have fallen 14%
over the past nine months.
Performance since June 2017
30%
20
Nasdaq Composite
10
0
–10
–20
Tesla
–30
July ’17
Dec.
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
indicators of credit strength
that are generally regarded as
a gauge of a company’s likelihood of bankruptcy, such as
the “Altman Z-Score,” which
was developed by a New York
University professor, Edward
Altman, in the late 1960s.
he had no operating role in
Rosemont Seneca.
A spokesman for Mr. Kerry
and an aide to Mr. Biden disputed Mr. Schweizer’s claims.
Mr. Schweizer, president of
the Government Accountability
Institute, which is chaired by
conservative donor Rebekah
Mercer, has a history of alleging
corruption by top politicians. In
2015, the Federal Bureau of Investigation started a corruption
inquiry based on claims he
made in a book about Bill and
Hillary Clinton: “Clinton Cash:
The Untold Story of How and
Why Foreign Governments and
Businesses Helped Make Bill
and Hillary Rich.”
The Clinton Foundation has
long denied wrongdoing, saying
it is a well-run charity that has
done immense good.
Mr. Schweizer also points to
the appointment of Ms. Chao’s
sister, Angela Chao, to the
board of state-owned Bank of
China, 10 days after the 2016
election. Angela Chao, who is
chairman and chief executive of
Foremost Group, according to
her personal website, couldn’t
be reached for comment. Efforts to reach CSSC and Bank of
China were unsuccessful.
Based on the Z-Score formula—which takes into account a number of variables,
including share price, working
capital, retained earnings and
other items—Tesla had a score
of 1.26, its lowest score for any
quarter since 2014. Any company with a score below 1.8 is
considered distressed by many
investors. A score of 1.0 or
lower suggests bankruptcy is
likely within two years.
Three of Tesla’s 10 largest
shareholders have recently sold
shares, according to the shareholders’ latest quarterly filings.
Fidelity Investments—the second-largest Tesla shareholder
behind Mr. Musk, with a nearly
10% stake—sold close to onethird of its stake in the final
three quarters of 2017, filings
show. A Fidelity spokesman declined to comment.
Other shareholders have
piled in. T. Rowe Price Group
Inc. more than doubled its
stake in the fourth quarter,
making it the fourth-largest
owner of Tesla shares.
Special counsel Robert
Mueller has subpoenaed
Trump Organization for documents related to his investigation into whether associates of President Donald
Trump colluded with Russia
to interfere in the 2016 election, according to a person
familiar with the matter.
Trump Organization has
been voluntarily producing
documents to the special
counsel’s office for months,
people familiar with the matter said.
“Since July 2017, we have
advised the public that the
Trump Organization is fully
cooperative with all investigations, including the special
counsel, and is responding to
their requests,” said Alan Futerfas, an attorney for Trump
Organization, in a statement.
Referring to reports of a
subpoena being issued, he
said: “This is old news and
our assistance and cooperation with the various investigations remains the same today.”
The statement didn’t directly confirm the issuance of
the subpoena. The special
counsel’s office declined to
comment.
The news of the subpoena
was reported Thursday by the
New York Times.
Mr. Mueller’s decision to
subpoena the company—
which is owned by Mr. Trump
and managed by his two adult
sons—appears to mirror the
strategy the Republican president applied to his campaign, which voluntarily gave
documents to the special
counsel for months before receiving a subpoena in October.
That subpoena requested
documents and emails from
more than a dozen top officials that reference a set of
Russia-related keywords.
Mr. Mueller is investigating possible collusion with
Moscow as part of a broader
probe into Russia’s alleged
meddling in the presidential
election. He is also examining
whether Mr. Trump sought to
obstruct justice during the
probe.
Mr. Trump has denied collusion and obstruction of justice; Moscow has denied meddling in the election.
The special counsel’s investigation has appeared to
focus less on the president’s
finances and more on questions of collusion and obstruction.
Mr. Mueller’s team has
asked witnesses in recent
months about Trump Organization’s business endeavors
in Russia, including an effort
to build a Trump Tower in
Moscow years before the
election, according to people
familiar with the matter.
Michael Cohen, an attorney
for Trump Organization at
the time, discussed a prospective real-estate deal in
Moscow with Mr. Trump on
three occasions during the
presidential campaign, Mr.
Cohen told the The Wall
Street Journal last year.
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | A4A
.
Friday, March 16, 2018 | A5
THE WALL STREET JOURNAL.
U.S. NEWS
BY WILLIAM MAULDIN
The Trump administration
is fighting a war of numbers
with Canada, escalating economic tensions with one of the
biggest U.S. trading partners.
President Donald Trump insisted on Thursday that the
U.S. is at a trade disadvantage,
while Canada denies anything
of the sort.
The trade balance is Mr.
Trump’s preferred yardstick
for measuring whether the
U.S. is gaining or losing from
economic relationships with
its partners. That differs from
the views of many economists,
who say countries benefit
from imports as well as exports and that a country’s
overall trade balance is based
on broad economic factors including investment and savings rates.
The complexity of the statistics measuring U.S.-Canadian trade flows allows each
side the ability to support its
claim by choosing from an array of data.
Trump administration officials typically focus on mer-
chandise trade balances with
other countries, which don’t
account for trade in services
such as insurance or tourism.
The U.S. Census Bureau’s
basic tally of merchandise
trade with Canada lists U.S.
exports at $282.4 billion and
imports from Canada at $300
billion, indicating a deficit of
$17.6 billion.
Canadian officials prefer to
include services trade as well
as merchandise. That method,
which gives highly competitive
American services industries
credit, gives the U.S. a small
surplus of $2.8 billion in 2017,
according to the U.S. Commerce Department.
The stakes in this dispute
are high, as the Trump administration continues to push its
northern neighbor and Mexico
to renegotiate the 24-year-old
North American Free Trade
Agreement to address what
the U.S. says are inequities in
the trade flows between the
two countries.
The Canadian assertion of a
U.S. surplus with the country
undercuts the Trump administration’s main trade argument
MARK BLINCH/REUTERS
Trump Spars With Canada on Trade Data
Canadian Prime Minister Justin Trudeau, right, touring a steel plant in Hamilton, Ontario, this week.
in Nafta and other negotiations with Canada—that U.S.
deficits represent unfair relationships that need to be overhauled.
The U.S. is asking Canada
for a litany of changes in the
Nafta talks, and Canada officials are responding with an
argument tailored to Mr.
Trump: Trade between the
two countries is balanced, so
no major changes are needed
to existing Nafta provisions.
A spokesman for the Canadian embassy in Washington
said, “Canada does not view
trade surpluses or deficits as
an appropriate measure of
whether a given trade relationship is working, or is ben-
eficial for the parties.”
Mr. Trump raised eyebrows
at a fundraiser when he reportedly told guests that he
recently insisted to Canadian
Prime Minister Justin Trudeau
that the U.S. has a trade deficit with Canada, despite having “no idea” if that was in
fact the case.
“Trudeau came to see
me…He said, no, no, we have
no trade deficit with you, we
have none,” Mr. Trump said
Wednesday, according to a
transcript published by the
Washington Post. “I said
wrong, Justin, you do. I didn’t
even know. Gosh, I had no
idea. I just said, ‘You’re
wrong.’”
Mr. Trump sought to clarify
his position in a tweet Thursday, saying that the U.S. is indeed at a trade disadvantage
with Canada. “We do have a
Trade Deficit with Canada, as
we do with almost all countries
(some of them massive),” Mr.
Trump wrote. “P.M. Justin
Trudeau of Canada, a very good
guy, doesn’t like saying that
Canada has a Surplus vs. the
U.S. (negotiating), but they do.”
House GOP Won’t Health-Law Suit May Boost Insurers
‘Rubber Stamp’
Senate Banking Bill
BY STEPHANIE ARMOUR
JOSHUA ROBERTS/REUTERS
WASHINGTON—House Republicans are pushing to leave
their mark on a bipartisan
overhaul of the banking sector
approved this week by the
Senate, a move that could
slow momentum for the legislation in Congress.
House Financial Services
Committee Chairman Jeb Hensarling (R., Texas) on Thursday said the House wouldn’t
“rubber stamp” the Senate
measure, which was approved
67-31 on Wednesday with the
support of 17 members of the
Democratic caucus. He described the Senate bill as “an
important first step.”
Mr. Hensarling, who is retiring from Congress this
year, said he discussed the
bill with House Speaker Paul
Ryan (R., Wis.) and was told
the bill wouldn’t leave Mr.
Ryan’s desk “unless and until
the Senate negotiates with
the House,” indicating House
lawmakers want to debate
adding provisions they favor
to the legislation.
The remarks reflect disappointment by some House lawmakers that the Senate bill,
which relaxes Dodd-Frank requirements for small and medium-size banks, doesn’t incorporate more bipartisan
provisions already approved
by the House.
Adding to the Senate plan
could upset the deal between
Senate Republicans and the
group of centrist Democrats
who backed it. Senate aides
have said making changes to
the package could delay final
passage of the overhaul for
weeks or months, or derail it
altogether. Centrist Democrats
have already said they won’t
support negotiations with
House lawmakers to make
changes to the Senate bill.
Mr. Hensarling appears to
be gambling that centrist
Democrats running in states
won by President Donald
Trump—a group that includes
Sens. Heidi Heitkamp of North
Dakota and Jon Tester of Montana—will accept additional
provisions that broaden the
scope of the bill because they
are eager to point to bipartisan accomplishments in their
campaigns. Several measures
were added to the bill during
Senate debate as part of an effort to smooth passage of the
bill in the House.
Democrats have already
weathered attacks from their
more liberal colleagues for
supporting the plan and say
they are prepared to walk
away from a deal if the House
adds controversial measures.
“There are some out there
that will say this bill is going
to look completely different
when it comes back from the
House,” Mr. Tester said last
week. “If it does, then I guess
we’re done.”
Brian Gardner, an analyst
at Keefe, Bruyette & Woods,
said it “would be the greatest
irony if House Republicans
wind up killing the bill and
doing what Sen. Elizabeth
Warren could not.”
Ms. Warren, a Massachusetts Democrat, led the opposition to the banking bill in
the Senate.
In its present form, the
Senate bill includes some provisions from a broader House
deregulatory package that
passed the chamber last year
without any Democratic support. Senate Democratic aides
say it also incorporates other
legislation that advanced
through the House in recent
years. House Republicans
want more and want to convene a formal or informal
panel of lawmakers from both
chambers to negotiate a
broader deal.
“We incorporated almost
40 House bills, many of which
are bipartisan, into the Senate
bill,” Ms. Heitkamp said in a
statement.
Mr. Hensarling said he has
a list of some 30 stand-alone
bills advanced on a bipartisan
basis in the House or his committee that are candidates for
inclusion in the Senate’s regulatory rollback.
One measure, passed by the
House in a 344-73 vote, would
clarify existing regulations
governing how startups pitch
potential investors on private
offerings.
House Financial Services Chairman Jeb Hensarling (R., Texas)
The standoff focuses partly
on a program, known as “risk
corridors,” that sought to entice insurers into the ACA
markets by helping cover their
financial risk. The administration collected money from insurers and redistributed it,
giving more to companies that
fared poorly on the ACA marketplaces.
Insurers say the administration promised to cover certain
losses even if it didn’t collect
enough from participating insurers. But Republicans have
put provisions in the federal
budget saying the program can
only pay out as much as it collected, creating a shortfall for
insurers of about $12.3 billion.
Insurers also say the administration reneged on “costsharing reduction” payments
to be provided through a separate ACA program. The health
law required insurers on the
exchanges to offer subsidies to
some low-cost consumers, and
the insurers say the Obama
administration promised to
cover the subsidies’ costs.
The payments were made
through last year, although
House Republicans filed a lawsuit in 2014 saying Congress
never appropriated the money.
President Donald Trump
Disputed Funds
Estimated annual amount U.S.
government would have to pay
over the next decade if
cost-sharing subsidies had
continued
$20 billion
15
10
5
0 0
FY2017
’20
’25
Note: Fiscal year ends Sept. 30.
Source: Congressional Budget Office
THE WALL STREET JOURNAL.
halted the payments in October, characterizing them as illegal. Insurers lost out on
about $2 billion last year, and
they would have gotten about
$8 billion this year.
After the panel’s ruling, the
case could be reconsidered by
the full 18-member court, or it
could be appealed to the Supreme Court.
The Justice Department
didn’t return messages seeking comment.
DEBT
Continued from Page One
60% after the September
storms damaged much of the
island’s infrastructure and real
estate.
With roughly $70 billion of
debt outstanding, Puerto Rico
is one of only a few large
trades available to hedge funds
seeking investments that don’t
move in lockstep with the
broader markets.
GoldenTree Asset Management LP owns nearly $600
million in face amount—the
amount to be paid the holder
at maturity—of Puerto Rico’s
subordinated bonds backed by
sales-tax receipts, some of
which jumped about 133% in
value this year, according to
data from the Municipal Securities Rulemaking Board.
That gain comes as Treasury bonds have lost 1.4% since
Jan. 1 and the below-investment-grade loans GoldenTree
specializes in have returned
about 1.38%, according to S&P
Dow Jones Indices.
Not all Puerto Rico bondholders benefited equally from
the reversal. Some bond prices
rose more than others as traders bet that the island’s various debt categories would recover different amounts in the
restructuring. Senior bonds
backed by Puerto Rico’s salestax collections rose by about
63% this year to 57 cents on
the dollar, while bonds issued
through the commonwealth’s
general account climbed about
40% to around 31 cents on the
dollar.
Hedge funds Baupost Group
LLC, GoldenTree and Tilden
Park Capital Management LP
own about $3 billion in face
value of the sales-tax bonds
and are arguing in bankruptcy
court that their bond documents give them repayment
priority in the restructuring.
CARLOS GARCIA RAWLINS/REUTERS
BY ANDREW ACKERMAN
Health insurers and the
Trump administration face a
court decision shortly that will
determine whether the government must pay insurers billions
of dollars despite Republican
efforts to block payments they
view as an industry bailout.
Insurers have filed roughly
two-dozen lawsuits claiming
the federal government reneged on promises it made to
pay them under the Affordable
Care Act. A decision could
come at any time on pivotal
litigation before a three-judge
panel at the U.S. Court of Appeals for the Federal Circuit.
The panel’s decision on
cases brought by two insurers—Moda Health Plan Inc.
and Land of Lincoln Mutual
Health Insurance Co.—will resolve splits between lowercourt judges. It could also
shape the outcome of other insurer lawsuits that would
leave the government potentially owing as much as
roughly $20 billion in past and
future payments. Those cases,
legal experts say, amount to
the largest civil lawsuits ever.
More than money is at stake.
If the federal government loses
the lawsuits, the Trump admin-
istration could find itself forced
to financially support a health
law it has been seeking vigorously to undo.
“There’s piles of money on
the table,” said Tom Policelli,
former chief executive of Boston-based Minuteman Health,
which is among dozens of insurers suing the government. “The
federal government offered a
deal to insurers, and they need
to hold up their end of it.”
Most of the lawsuits come
down to a simple argument:
Insurers say they were promised funding by the Obama administration under the ACA,
but Republicans opposed to
the law blocked the payments.
That money, they say, is still
owed to them because they
suffered financial losses.
The administration essentially says insurers aren’t entitled to funding because it was
never appropriated by Congress.
Legal experts say the insurers could win at least some of
their claims. Timothy Jost, an
emeritus professor at the
Washington and Lee University
School of Law, said that while
the judges’ questions at argument seemed to favor the government, they had the option
of awarding the insurers some
of their claims but not all.
Despite signs of progress, conditions on the island remain difficult in the wake of September hurricanes.
Hedge funds Autonomy Capital, Aurelius Capital Management LP and Fundamental
Advisors LP own about $2 billion of the general-obligation
debt combined and are suing
to establish their own primacy.
A hearing in these factions’ legal battle is scheduled for
April 10.
The recovery in Puerto Rico
bonds contrasts with an even
sharper decline last fall, when
Hurricane Maria struck and
President Donald Trump suggested the island’s debts
should be wiped out to help it
rebuild. Baupost’s owner, Seth
Klarman, publicly opposed Mr.
Trump’s idea, drawing criticism from nonprofit groups
that support debt forgiveness
for Puerto Rico and have
pushed Baupost clients to divest themselves from the firm.
Investor sentiment started
to improve in late December,
when Puerto Rico announced
$6.8 billion in previously undisclosed government bank accounts. Sentiment strengthened further as economic
activity
recovered
more
quickly than expected and Congress in February approved
$12.8 billion in federal rescue
funds. In February, the island’s
government revised its maximum debt capacity forecast to
$27 billion from about $14.5
billion.
“The construction boom after the hurricane is fueling an
increase in bond prices, but
that’s going to be short-lived,”
said Eric LeCompte, executive
director of Jubilee USA Network, one of the activist
groups seeking debt forgiveness for Puerto Rico. “We
should be focused on longterm economic growth for
Puerto Rico and that includes
debt relief.”
Bondholders say Puerto
Rico is still being too conservative in its economic forecasts to maximize debt forgiveness
in
coming
restructuring talks.
“The
reality
diverged
greatly from the cataclysmic
economic contraction that was
being projected by the commonwealth,” said Hector Negroni, co-founder of Fundamental Advisors.
A representative for the
Puerto Rico Fiscal Agency and
Financial Advisory Authority
didn’t return a call seeking
comment.
Puerto Rico and the federal
oversight board supervising it
held mediation talks with creditors in New York this month,
people involved in the process
said. Formal restructuring negotiations are expected to start
in April after the board certifies the commonwealth’s longawaited fiscal plan for the next
five years, the people said.
A hearing is also scheduled
to start April 10 in the lawsuit
between general-obligation
bondholders and sales-tax
bondholders, possibly spurring
the parties toward settlement.
The oversight board hopes to
reach a restructuring plan in
less than a year, one of the
people said.
Some remain pessimistic
about the likelihood of a rapidly negotiated resolution, in
part because of the many different types of bonds Puerto
Rico must reach deals on,
ranging from highway and
electric utility-related debt to
the sales-tax and general-obligation bonds.
“We think the litigation will
go on and on,” said Joe Rosenblum, head of municipal bond
research at AllianceBernstein
Holding LP.
.
A6 | Friday, March 16, 2018
THE WALL STREET JOURNAL.
* ****
WORLD NEWS
Trump to Press China on Tech Transfer
U.S. administration
readies tariffs, other
measures, in defense
of intellectual property
Numbers Game
The Trump administration is
looking at steep tariffs to try to
reverse the U.S.-China
merchandise trade deficit.
BY BOB DAVIS
AND MICHAEL C. BENDER
U.S. trade deficit with China*
WASHINGTON—The Trump
administration is putting together a package of anti-China
measures, including tariffs on
at least an annual $30 billion
of Chinese imports, to pressure Beijing to end requirements that U.S. companies
transfer technology to Chinese
firms.
According to a White House
official and people briefed on
administration deliberations,
the measures are the next part
of an administration trade policy aimed at reducing the
enormous U.S. trade deficit.
President Donald Trump has
said that he wants China to
come up with a plan to slash
its $375 billion merchandise
trade surplus with the U.S. by
$100 billion.
The measures, which are
expected to be announced in
the next week or two, arise
from administration findings
that China has violated U.S. intellectual-property laws and
has unfairly pressured U.S.
companies to transfer technology. The administration, ac-
–100
AGENCE FRANCE-PRESSE/GETTY IMAGES
$0 billion
–200
–300
Proposed
$100 billion
reduction
–400
2005
’10
’15
*Excludes services
Source: U.S. Census Bureau
Steel, here in a facility in China’s Shandong province, is among the products the U.S. is targeting.
THE WALL STREET JOURNAL.
cording to the individuals involved, estimates the damage
to U.S. companies from forced
technology transfer at $30 billion annually. The administration has been working for
months on a report laying out
the evidence for its allegations.
No final decisions about retaliation have yet been made,
according to a White House
spokeswoman.
The measures being considered include: tariffs of at least
an annual $30 billion on a
wide range of Chinese products; strengthened restrictions
what’s absolutely necessary,”
said James McGregor, the
head of the China office of
APCO Worldwide, a communications and lobbying firm.
“But when you are going
around and attacking your
trading partners, who is going
to work with you?”
Mr. Trump sees tariffs as an
important negotiating tool,
and “he may have to use it in
some cases, and that includes
China,” said Lawrence Kudlow,
whom Mr. Trump is set to
name as the director of the
White House National Economic Council, in an interview
on Chinese investment into
the U.S.; and limits on visas to
Chinese students, academics
and executives to visit or
study in the U.S., individuals
briefed on the measures said.
These options were discussed in a White House
meeting last week that included officials from the Commerce Department, Defense
Department, the Council of
Economic Advisers and the
U.S. Trade Representative’s
office, the White House official said.
Along with these unilateral
measures, the administration
is also considering filing a
case at the World Trade Organization against China, alleging a variety of violations
of trade rules. The WTO case
is seen as a way to try to rally
support from other trading
nations that are concerned
about China’s trade behavior
and present a united front.
Yet the administration has
undercut multilateral action
by planning to levy tariffs on
steel and aluminum imports
from Japan, South Korea, the
European Union and other allies, critics say.
“Multilateral action is
Wednesday.
China has objected to the
intellectual-property investigation and said that the country is making a serious attempt at reforming its
economy. The Chinese Embassy in Washington didn’t respond to requests to comment.
Pressing China on trade has
wide support among U.S. businesses, which complain that
Beijing unfairly subsidizes its
state-owned firms to develop
technology and hinders U.S.
companies doing business in
China. But many companies
fear that imposing tariffs
would backfire by inviting retaliation from the Chinese and
would raise costs for U.S. businesses.
“Tariffs would be incredibly
counterproductive,” said Josh
Kallmer, senior vice president
at the Information Technology
Industry Council.
On Wednesday, about two
dozen trade groups met at the
offices of the National Retail
Federation to confer on the
administration’s China plans
and to consider joint action,
said Naomi Wilson, the ITIC’s
director of global policy. No
decisions were made, but the
groups generally oppose tariffs and plan further sessions,
she said.
—William Mauldin
and Jacob M. Schlesinger
contributed to this article.
North Korean Visits Sweden as Summit Plans Advance
A senior North Korean government official landed in
Stockholm on Thursday evening for two days of talks that
By Andrew Jeong in Seoul
and David GauthierVillars in Stockholm
could be a prelude to a planned
summit between U.S. President
Donald Trump and North Korean leader Kim Jong Un.
Swedish officials said North
Korea’s foreign minister, Ri
Yong Ho, arrived at Stockholm’s Arlanda airport for
meetings with his Swedish
counterpart, Margot Wallström.
They will discuss “recent
efforts of reconciliation” and
the “general situation” on the
Korean Peninsula, a spokesman for the Swedish ministry
said. The ministry said the two
top diplomats would also discuss Sweden’s consular role in
representing U.S. interests in
the Asian country.
North Korea’s state-run media acknowledged Mr. Ri’s visit
to Sweden, saying he would
“exchange views on the bilateral relations and issues of
mutual concern” with Ms.
Wallström.
Mr. Ri’s visit comes amid
intense diplomatic efforts
aimed at preparing a possible
meeting between Mr. Trump
and Mr. Kim.
After months of escalating
tensions, during which North
Korea tested ballistic missiles
capable of crossing the Pacific
Ocean and Messrs. Trump and
Kim traded bellicose messages,
Pyongyang and Washington
are exploring diplomacy.
Last week, Mr. Trump said
he had agreed to a summit
with Mr. Kim to negotiate the
dismantlement of North Korea’s nuclear arsenal.
State Department spokeswoman Heather Nauert said
“we don’t have any indication”
that the meeting between the
North Korean foreign minister
The Nordic country
handles U.S.
diplomatic interests
in Pyongyang.
and his Swedish counterpart
was being held to discuss the
anticipated meeting between
Mr. Trump and Mr. Kim.
U.S. officials won’t be attending the meeting in Sweden, she added.
Ms. Nauert said the U.S. has
yet to hear directly from North
Korea about Mr. Trump’s
Little Suspense in Russia’s Election, Except How Many Will Show Up
agreement to attend the meeting with Mr. Kim. “We’re going
forward in full faith and understanding that a meeting
will go forward,” she added.
Sweden, one of a handful of
Western countries to maintain
an embassy in Pyongyang,
handles U.S. diplomatic interests in North Korea.
The Scandinavian country
has mediated talks between
the U.S. and North Korea in the
past and has helped the U.S.
secure the release of Americans detained by Pyongyang.
Sweden has also been the
most vocal European Union
country in favor of keeping
talks going—resisting U.S. de-
U.K. Allies Excoriate
Moscow for Poisoning
The U.S. joined the U.K.,
France and Germany to condemn the poisoning in Britain
of a Russian former double
agent as “an assault on U.K.
sovereignty,” saying Thursday
that it constituted a breach of
international law and calling
on Russia to explain its role in
the attack.
The show of unity deepens
the isolation of Moscow, which
has responded defiantly to the
U.K.’s accusations that it was
culpable in the attempted
murder of Sergei Skripal and
his daughter with Novichok, a
nerve agent developed in the
Soviet Union.
President Donald Trump,
French President Emmanuel
Macron and German Chancellor Angela Merkel shared the
U.K.’s assessment that it was
highly likely that Russia was
responsible for the attack, the
first using a nerve agent in a
North Atlantic Treaty Organi-
zation member.
It comes as the Trump administration issued its first
sanctions against Russia for
meddling in the 2016 U.S.
presidential elections, as well
as a cyberattack known as
NotPetya and the nerve-agent
poisoning in Salisbury, England.
“We, the leaders of France,
Germany, the United States
and the United Kingdom, abhor the attack that took place
against Sergei and Yulia Skripal,” read the joint statement,
released by the U.K. government.
“It is an assault on U.K.
sovereignty and...a clear violation of the Chemical Weapons
Convention,” the statement
said. “It threatens the security
of us all.”
The U.K., which is expelling
23 Russian diplomats, had
pushed for backing from its allies, as questions arose about
whether the U.S. and other
countries would deliver strong
support.
Moscow has called claims
of its involvement “nonsense.”
expert at the Washingtonbased Center for Strategic and
International Studies. “These
aren’t earth-shattering sanctions, she said. “My guess is
that [Russian intelligence
agencies] don’t have a Bank of
America account.”
But, said Amit Yoran, chief
executive officer of cybersecurity firm Tenable and a former
senior DHS official, “The fact
that the DHS and the FBI have
attributed attempts to attack
and compromise critical U.S. infrastructure to Russia is unprecedented and extraordinary.”
“The administration is
confronting and countering
malign Russian cyber activity, including their attempted
interference in U.S. elections,
destructive cyberattacks, and
intrusions targeting critical
infrastructure,” said Treasury
Secretary
Steven
Mnuchin in a statement.
The sanctions are the administration’s first punitive
actions under the law passed
last year to force the White
House to punish Russia for
election interference. A senior
administration official said
more sanctions against Russia
would be coming.
The Trump administration
has come under heavy criticism for its response to Russia’s alleged election meddling, with critics saying the
administration hasn’t taken on
Moscow aggressively. Mr.
Mueller is investigating Moscow’s involvement in election
interference and whether
there was collusion between
the Kremlin and the Trump
campaign, a charge Mr. Trump
has repeatedly denied.
—Thomas Grove in Moscow
contributed to this article
VASILY BATANOV/AGENCE FRANCE-PRESSE/GETTY IMAGES
By Wiktor Szary
in London and Thomas
Grove in Moscow
CLEAR SAILING: Black Sea fleet crew in Sevastopol, Crimea, vote early in Russia’s presidential election. Russians go to polling stations
Sunday for an election whose outcome everyone already knows: President Vladimir Putin has an approval rating of around 80%, according
to polls, making the challenge for the Kremlin not how to ensure his victory, but how to boost voter turnout to legitimize the result.
RUSSIA
Continued from Page One
it. The concerns, playing out
over the past few years, focus
on Russia’s efforts to influence
U.S. elections, cyberattacks on
U.S. companies, Moscow’s involvement in war-ravaged
Ukraine and Syria, and the
U.K. nerve-agent attack.
The punitive action Thursday may help address some of
those concerns, though analysts said it is unlikely by itself to deter Russia.
Russia experts say the poisoning of Sergei Skripal and
his daughter likely spurred the
administration to push up a
planned round of sanctions
against Moscow that would
have been levied after Russian
elections next week.
The White House also issued
a joint statement Thursday
with France, Germany and the
U.K. condemning Russia for the
attack. The administration said
it backs London’s assessment
that Russia was involved.
Also Thursday, the Department of Homeland Security
and the Federal Bureau of Investigation issued an alert to
U.S. businesses about cyberattacks on critical U.S. infrastructure that had been conducted
by the Russian government
since at least March 2016.
“The campaign is long-term
and still ongoing,” a senior national security official said on
a White House conference call
with reporters.
Taken together, the actions
represented a heating up of
diplomatic warfare between
Russia and the West. Earlier
this week, the U.K. expelled 23
Russian diplomats and Russian
Foreign Minister Sergei Lavrov
fired back, “it is all nonsense.”
Russian Deputy Foreign
Minister Sergei Ryabkov
Thursday said Moscow had
been long prepared for additional U.S. sanctions and
warned the Kremlin would take
its own measures in response.
Thursday’s U.S. sanctions
targeted Russia firms and individuals indicted last month by
special counsel Robert Mueller,
including the so-called Internet
Research Agency and its owner
Yevgeniy Viktorovich Prigozhin.
Mr. Prigozhin and two of
his other businesses were previously sanctioned for their
role in supporting Russia’s involvement in the Ukraine war.
Similarly, two Russian intelligence agencies, the Federal
Security Service and the Main
Intelligence Directorate, and
four intelligence officials listed
in Wednesday’s action previously had been sanctioned by
the Treasury. But the administration added two more Russian intelligence officials to its
blacklist as well as Mr. Prigozhin’s Internet Research
Agency and people associated
with his businesses.
The sanctions, which ban financial dealings with the individuals and firms named, are
unlikely to have much of a practical impact, in large part because the latest list hits many
entities and individuals already
blacklisted and the newly added
people aren’t important to Russia’s economy or politics.
Rather, their relevance is
symbolic, a diplomatic challenge to the Kremlin that
holds Russia to account.
“It’s a signaling action,”
said Olga Oliker, a top Russia
mands that allies cut ties with
North Korea.
The country is currently a
nonpermanent member of the
United Nations Security Council, and serves in the Neutral
Nations Supervisory Commission in Korea, which was set
up by the July 1953 armistice
signed by North Korea and the
U.S., to monitor armistice violations.
The Swedish Embassy in
Pyongyang most recently facilitated the release of Otto Warmbier, a U.S. student who was detained in North Korea for 17
months. Mr. Warmbier was released in 2017 in a coma and
died soon after returning home.
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | A7
WORLD NEWS
BY BOJAN PANCEVSKI
BERLIN—Angela
Merkel
will push back on Emmanuel
Macron’s ambitious plans to
overhaul the European Union
at a meeting in Paris on Friday, reaffirming her country’s
longstanding skepticism about
the pooling of fiscal resources
and liabilities among eurozone
member states.
The German chancellor will
use her first meeting with the
French president since parliament re-elected her Wednesday to deliver the bad news,
officials from several European countries and senior officials familiar with Ms.
Merkel’s thinking said.
Mr. Macron’s pledge to
strengthen the EU and buttress the foundations of its
common currency was a core
part of the message that led to
his election last year. It included giving the eurozone a
joint finance minister and a
substantial budget to be used
for investment and countering
economic shocks, as well as
speeding up the integration of
its banking system, in part
with a joint backstop and a
common deposit guarantee
program.
The rejection—the first
substantial setback for the
charismatic French president—will disappoint Paris,
EU officials in Brussels and
much of Southern Europe,
where leaders had hoped Ms.
Merkel’s fourth government
would soften its posture and
agree to underwrite a more
robust set of fiscal, financial
and banking backstops to be
deployed in the event of future
economic and financial crises.
The EU’s executive arm had
hoped to set up a deeper economic and monetary union that
would protect the eurozone
against crises by mid-2019,
ahead of EU elections.
French officials in early negotiations with the new German government said both
sides remain open.
“It’s important to act now
to strengthen the eurozone, so
we can face whatever the future holds,” a finance ministry
spokeswoman said.
Swiss Central Bank
Holds to Negative Rate
BY BRIAN BLACKSTONE
Switzerland is facing a dilemma: The economy is growing but the central bank is still
in crisis mode.
The Swiss National Bank
has kept the deposit rate at its
current level since January
2015, when the bank also unexpectedly abandoned a ceiling on the franc’s value
against the euro. On Thursday,
the SNB kept its key policy
rate at minus 0.75%.
“The negative interest rate
and the SNB’s willingness to
intervene in the foreign-exchange market as necessary
therefore remain essential.
This keeps the attractiveness
of Swiss franc investments low
and eases pressure on the currency,” the SNB said. The euro
traded at 1.169 francs after the
decision, little changed from
Wednesday.
Yet after a soft patch early
last year, Swiss gross domestic
product has expanded into the
2% annualized range recently.
The unemployment rate was
just 3.2% in January. Its trade
surplus was 35 billion francs
($37.04 billion) last year,
roughly 5% of Swiss GDP.
The SNB said it expects
Swiss GDP to expand around
2% this year amid a broader
pickup in the global economy.
RAIGO PAJULA/AGENCE FRANCE-PRESSE/GETTY IMAGES
Merkel Set to Buck
Macron on EU Plan
A military vehicle rolled through Tallinn on Feb. 24 during a parade marking the 100th anniversary of Estonia’s declaring independence.
Europe Trails Defense Goal
BY JULIAN E. BARNES
Most of Europe’s increased
military spending hasn’t kept
pace with resurgent economic
growth, creating new hurdles
for U.S. President Donald
Trump’s push that all members must spend 2% of their
economic output on defense.
Only the U.K., Greece and
Estonia hit the target in Europe
last year. Poland and Romania,
which were expected to join the
2% club, failed to do so because
of a surge in their economies.
Mr. Trump has made increasing European military
spending a priority, and has
returned to the theme that Europe isn’t doing enough to
shoulder the burden of its own
defense. The North Atlantic
Treaty Organization is anxious
to show progress on a critical
priority of the administration
by the time of the July summit
of leaders, for fear of having
Mr. Trump deliver another lecture to his counterparts.
But NATO officials have in-
sisted that increasing military
spending isn’t just about
meeting American demands
and preventing a strain of the
trans-Atlantic relationship.
Boosting defense budgets is
also important to address
growing threats, particularly
from Russia. Disinvestment in
the military has created gaps,
and only more spending can
help increase deterrence in the
face of a more aggressive Russian government.
Overall, military spending
in Europe is growing, driven in
large part by Germany’s nearly
6% real growth in its defense
budget.
But Germany, a frequent target of Mr. Trump’s ire over European military spending, is
still well below the 2% goal. In
2017, Berlin spent only 1.24% of
its gross domestic product on
defense, according to numbers
NATO released on Thursday.
While most countries have
reversed the post-Cold War
budget cuts, growth of military spending is slow in West-
Show Me the Money
European military spending has
risen, but economic growth has
damped progress on reaching the
goal of spending 2% of nations’
economic output on defense.
Defense expenditure
as a share of GDP
North America
NATO Europe
5%
4
3
2
1
0
2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17
Source: North Atlantic Treaty Organization
THE WALL STREET JOURNAL.
ern Europe’s biggest countries.
In real terms, taking into
account inflation, military
spending in France was up just
1.43% last year, Italy rose
1.68%, and spending fell in the
U.K. by 0.12%, NATO said.
In smaller and midsize
Western European economies,
the picture is more mixed.
Spanish military spending rose
18.25%, for example, while Belgian defense budgets fell by
0.73%, in real terms, and remain less than 1% of GDP.
A Belgian official said new
contracts in the coming
months, including for a replacement jet fighter, will
boost spending.
Any push to raise the budget significantly closer to 2%
would likely have to wait for a
new government, the Belgian
official said.
To build up European capabilities and allow the continent to shoulder more of the
defense burden, U.S. officials
have said it is critical to increase spending in the larger
economies of Western Europe.
NATO
Secretary-General
Jens Stoltenberg predicted that
eight countries would reach
the 2% spending goal this year.
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A8 | Friday, March 16, 2018
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
Ostracized, Qatar Remains Defiant
some 485 local and foreign
companies.
“It’s been a blessing in
disguise when it comes to
business,” he said.
Because of severed air
links, multinational companies can no longer fly executives on day trips to Doha
from the Gulf’s regional hub
of Dubai, and many Qatari
clients prefer dealing with
offices that aren’t based in
cities they can no longer
visit. This has led many international companies to establish branches in Doha,
leading to a 70% rise in the
number of firms operating
under QFC licenses, Mr. alJaida said.
DOHA, Qatar—It has been
nine months since Qatar
turned from a peninsula to a
de facto island.
By now, the tiny but
wealthy emirate has gotten
used to this new reality, developing fresh trade routes
and alliances that may affect
the Middle
East’s balance
for years to
come.
The sudden
decision in
June by Saudi
Arabia, Bahrain and the
United Arab Emirates to cut
ties with Qatar over the
country’s alleged support for
terrorism was meant to be a
knockout blow. It included a
prohibition on Qataris visiting those neighboring nations, a ban on overflights
and port use for Qatari
trade, and the closure of the
nation’s only land border.
Qatar, however, has managed to withstand the pressure—and the government
says it won’t capitulate to its
bigger Gulf neighbors.
“They don’t want us to
make our decisions, they
want to make decisions for
us, they think our decisions
are for sale and that we will
simply give up and do what
they tell us. That will never
happen,” said Sheikh Saif bin
Ahmed Al-Thani, the director
of the emirate’s government
communications office and a
prominent member of Qatar’s ruling family.
“What happened to us is
something that we don’t
want to happen to another
country,” he said.
Qatar has responded to
YASIN BILBUL, PRESS POOL
MIDDLE EAST
CROSSROADS
By Yaroslav Trofimov
While sanctions have caused Qatar pain, they have also unexpectedly accelerated some reforms.
the embargo by establishing
new trade routes via Turkey
and Iran, the two countries
that provide an alternative
to Saudi Arabia’s airspace
and road access.
F
or the Saudis, enmeshed in their own
regional effort to contain Iran, this shift by Qatar
represents “an own goal,”
said Nader Kabbani, director
of research at the Brookings
Doha Center, a think tank.
“These trade links sooner
rather than later will become
stable and normal, and this
may affect the geopolitics of
the region in the future,” he
said.
The U.S.—which maintains
a critical military facility in
Qatar and is wary of growing
Iranian influence in the
Gulf—has been trying to mediate this increasingly inconvenient dispute between its
allies. President Donald
Trump spoke to Qatar’s emir
and the crown princes (and
de facto rulers) of Saudi Arabia and the U.A.E. in February. All three leaders are
slated to visit him in Washington in coming weeks.
So far, these efforts—as
well as mediation by Kuwait
and entreaties by European
80
Nationalities for which Qatar
has abolished visa requirements
governments to all sides—
have proved largely fruitless.
“Right now we have not
seen any sign from the
blockading countries that
they are willing to meet us
at the same table to discuss
our differences,” Qatar’s
Sheikh Saif said.
Key objections that Saudi
Arabia, the U.A.E. and their
ally Egypt have about Qatar
include the emirate’s friendly
relationship with the Muslim
Brotherhood and coverage
by Qatar’s Al Jazeera panArab network that is critical
of regional countries.
While Saudi-led sanctions
on Qatar have caused pain,
they also have had the unexpected effect of accelerating
some reforms.
Since June, the emirate
has abolished visa requirements for 80 nationalities,
moved to establish permanent-residency rights for foreigners, and is setting up
free economic zones. There
are even plans for holding
elections to a new legislature.
“All of these reforms
would have taken a lot longer if it were not for the
blockade,” said Yousuf Mohamed al-Jaida, chief executive of the Qatar Financial
Centre, a body that hosts
I
t isn’t all good news, of
course. One of the reasons why Qatar managed
to survive an embargo by its
key trading partners and
food suppliers was because
the country owns Qatar Airways, a passenger airline
that seeks to become the
world’s second-largest cargo
carrier by next year.
With much of its capacity
diverted to provide emergency supplies following the
June embargo, and several
lucrative regional routes
lost, Qatar Airways said last
week that it would announce
“a very large loss” and might
need a government bailout
in the future.
Still, the way Qatar’s officials see things, it is an acceptable price for maintaining independence. All of the
main development projects,
including preparations for
hosting the 2022 soccer
World Cup, remain on schedule or have been accelerated,
they said.
The International Monetary Fund, in a March statement on Qatar in which it
projected GDP growth of
2.6% this year, said “the direct economic and financial
impact of the diplomatic rift
between Qatar and some
countries in the region is
fading.”
Black Hawk
Crashes in
Western Iraq
BY NANCY A. YOUSSEF
A U.S. Black Hawk helicopter, operating as a medevac,
has crashed in western Iraq
and there are likely fatalities,
a U.S. military official said.
The flight manifest listed
seven service members on
board, the official said.
“A U.S. military aircraft has
crashed in western Iraq with
U.S. service members aboard.
Rescue teams are responding
to the scene of the downed
aircraft at this time,” the U.S.led military coalition said in a
statement.
The crash occurred Thursday night near the Iraqi town
of al Qaim, not far from the
Syrian border, the official said.
WORLDWATCH
SYRIA
Civilians Flee Ghouta
By the Thousands
Thousands of civilians fled
Eastern Ghouta as Syrian regime
forces advanced further into the
rebel-held enclave near the capital, while Turkish forces intensified their assault on the Syrian
Kurdish city of Afrin in the north.
The exodus from Ghouta on
Thursday marked a significant
gain for Syrian President Bashar
al-Assad as he presses to consolidate control around Damascus.
—Sune Engel Rasmussen
SLOVAKIA
Prime Minister Quits
Slovak Prime Minister Robert
Fico and his government resigned Thursday as a way out of
the political crisis triggered by
the slayings of an investigative
journalist and his fiancée. President Andrej Kiska asked Peter
Pellegrini, Mr. Fico’s deputy
prime minister, to form a new
government.
—Associated Press
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.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | A9
IN DEPTH
AT&T
Giant Combination
A combined AT&T-Time Warner
would dwarf traditional media
firms but lag behind new
internet players in market value.
Market capitalization, in billions
AT&T
Time Warner
$303 billion
CONTENT
Comcast*
$168
Disney
155
Fox
68
CBS
20
Viacom
14
Discovery 11
DELIVERY
Verizon
$199
Comcast
168
Charter
81
T-Mobile
55
Sprint
21
Dish
19
INTERNET
Alphabet
Amazon
Facebook
Netflix
139
$800
766
534
*owns NBC/Universal
Note: As of March 14
Source: FactSet
THE WALL STREET JOURNAL.
BERRY
Continued from Page One
ing trade dispute.
“Korean strawberries are
based on leaks of Japanese
seeds,” Ken Saito, Japan’s agriculture minister, said at a
press conference after the
Games. “I’d like our curling
team to eat tasty Japanese
strawberries.”
Japan has stewed about the
alleged berry skulduggery for a
few years, but after a curling
team member declared Korean
strawberries “surprisingly delicious” at an Olympic press
conference, temperatures escalated.
Online chat sites popular
with Japanese nationalists
buzzed. “Of course they’re delicious; they’re Japanese!”
wrote one commenter.
“$200 Million in Losses
From Plagiarized Korean
Strawberries,” declared one
magazine headline, referring to
a government estimate of the
total lost revenue for Japanese
strawberry exports over five
years.
The Japan Curling Association moved quickly to shield
the team. It declined to make
the players available to talk
about strawberries, adding
that criticism of them online
national attention from Japan’s
teenage heartthrobs. At the
Games, the South Korean
women’s curling team bested
Japan in a nail-biter, eventually taking the silver medal.
(Sweden won gold.)
The Japanese take fruit very
seriously. Luxury fruit shops
display gorgeously wrapped,
expensive specimens ready to
present as gifts—domestic
muskmelons, for example, are
traditionally exchanged during
gift-giving seasons at midyear
and year-end.
Pears and apples are also
popular, and last year, a bunch
of grapes set a new national
record of around $10,000 at
auction. At Sembikiya, a fruit
seller in central Tokyo, a box of
the biggest strawberries this
week sells for $6.75—per berry.
Japan’s strawberry exports
totaled just under $17 million
last year, while South Korean
exports reached $44 million,
according to government figures in each country. South Korea more than tripled exports
between 2000 and 2014,
mainly to other Asian nations
where Japan was once the
dominant supplier.
The dispute originated in
the 1990s, when both countries
say seeds of two Japanese varieties—the Red Pearl and Akihime—were taken to South Korea. It isn’t clear who imported
them, but Japanese plants
quickly became popular for
their high yields and sweet
fruit.
Farmers in Japan couldn’t
grow the two varieties without
licensing the rights, but South
Korea had no legal protection
for plant products at the time.
In 2002, South Korea signed an
international treaty that allowed foreign farmers to register their original products for
similar protections in Korea,
starting in 2012. But after the
treaty was signed, local farmers developed hybrids from the
original Japanese varieties and
registered them as new types
of strawberry.
Tsutomu Imura, a Japanese
official in charge of copyright
for vegetables and fruits in
Tochigi, the country’s best
known strawberry growing
prefecture, was happy to see
the curling players eating
strawberries during the Olympics—but disappointed when
he learned they were eating
Korean fruit.
Still, he said it shouldn’t be
the source of a dispute. Strawberries have been grown in
Japan only since the mid-19th
century, from seeds brought
from Holland. “Japanese strawberries are not originally from
Japan, either,” he said.
—Andrew Jeong in Seoul
contributed to this article.
FROM LEFT: ANDREW HARRER/BLOOMBERG NEWS; CLIFF OWEN/ASSOCIATED PRESS
People close to AT&T’s management say the department’s
lawsuit surprised Mr. Stephenson, a lifelong Republican often
vexed by Mr. Trump’s unpredictable statements.
AT&T, in its own brief, said
the department’s legal arguments fell apart in trial preparations, writing: “Now, what remains of the government’s case,
‘like a Persian cat with its fur
shaved, is alarmingly pale and
thin,’ ” borrowing a turn of
phrase from a 1992 case.
That choice of words raised
eyebrows among some people
close to Mr. Delrahim, who is of
Persian descent.
U.S. District Judge Richard
Leon will open the proceedings
March 19. This isn’t a jury trial.
The judge alone, who oversaw
the Comcast-NBCU settlement,
will decide the merger’s fate.
AT&T CEO Randall Stephenson, left, is facing off with U.S. antitrust chief Makan Delrahim, right, over AT&T’s Time Warner deal.
dia hybrids. A loss could leave
the media industry wide open as
programmers and distributors
search for ways to adapt to
changing consumer tastes.
The case raises this central
question: If AT&T buys Time
Warner, would it lead to substantially less competition?
Both sides lay out their arguments in court papers filed in
the case.
Mr. Delrahim’s team says yes.
The deal would mean higher
prices and sluggish innovation,
the department says in the filings, and “American consumers
will end up paying hundreds of
millions of dollars more than
they do now to watch their favorite programs on TV.”
Pay-TV ecosystem
The department acknowledges AT&T and Time Warner
aren’t direct rivals, but argues
the deal could broadly harm the
public because the merged firm
would have too much power in
the pay-TV ecosystem. It says
Time Warner’s content, especially the Turner networks—including TBS, TNT, CNN, Cartoon
Network and truTV—are competitively significant, with consumers expecting pay-TV packages will include those channels.
If AT&T owns Time Warner,
it could threaten to withhold the
Turner channels from rivals of
DirecTV unless they pay higher
fees, a move that would ultimately lead to higher consumer
cable bills, the department alleges. It says AT&T could limit
the ability of rivals to offer promotions on Time Warner’s HBO,
the most popular premium television channel, as a way to add
subscribers or retain customers.
On the innovation front, the
department says an independent Time Warner has been eager to offer its channels as part
of online packages that break
from the traditional cable model
but wouldn’t be so willing under
AT&T. “With the merger, Time
Warner would turn from friend
to foe,” it says in filings.
AT&T rival Comcast is likely
to come up frequently in the
case. An AT&T victory, the DOJ
says, would give it and Comcast
a stranglehold on the industry.
But the department in 2011 allowed Comcast to take control
of NBCUniversal, creating an integrated giant similar to what
AT&T now wants to become.
The DOJ under Barack
Obama allowed the Comcast
deal after imposing restrictions
for not knowing the origins of
the fruit was unfair. “How
many of you [journalists] knew
about it?” an association
spokesman said.
In South Korea, media went
into overdrive to squash
Japan’s complaints. “Japan is
making something out of nothing,” an anchor for TV Chosun,
the broadcasting arm of one of
South Korea’s largest newspapers, said on a news show. An
official at the strawberry division of a state-run seed developer said a wave of phone calls
from the press had made it
“impossible to conduct normal
work.”
The South Korean agriculture ministry declined to comment, citing diplomatic sensitivities over the issue. It
pointed to a March 8 press release in which it acknowledged
that over 80% of South Korean
strawberries produced up to
2005 had been based on Japanese seeds. Now, it said, 93% of
South Korean strawberries are
grown from locally developed
seeds.
Food fights world-wide in
recent years have included a
legal dispute between Israel
and Lebanon over ownership
of hummus, the chickpea paste.
The governments of Peru and
Chile have traded barbs over
which country dug the first potato out of the ground 10,000
Industry Standing
AT&T and Time Warner already compete with different players in various markets. How they stack up:
AT&T
Time Warner
Pay-TV distributors
COMPANY
Wireless providers
VIDEO SUBSCRIBERS, MILLIONS
AT&T*
Comcast
Charter
Dish*
Verizon
25.2
22.4
17.0
13.2
4.6
TV-channel owners
COMPANY
COMPANY
U.S. SUBSCRIBERS, MILLIONS
Verizon
AT&T
T-Mobile
Sprint
116.3
93.2
58.7
40.9
Premium/on-demand brands
SHARE OF TV VIEWERS†
NBC/Universal
Disney
Discovery/Scripps
Fox
Viacom
Time Warner
19%
15
14
13
11
11
COMPANY
U.S. SUBSCRIBERS‡, MILLIONS
HBO/Cinemax
Netflix
Showtime
Starz
Hulu
54
53
25
24
17
*Includes 1.2M DirecTV Now connections and 2.2M Sling TV subscribers †Share of broadcast and cable programs watched live or within seven
days for the current season (Sept. 25, 2017 - Feb. 25, 2018) ‡Estimates
Sources: Leichtman Research Group (pay TV); MoffettNathanson (TV channels);
THE WALL STREET JOURNAL.
Kagan, S&P Global Market Intelligence (premium/on-demand TV); the companies
on Comcast’s business tactics
after the merger. DOJ leadership
under Mr. Delrahim has made
clear it opposes the approval of
mergers based on those types of
“behavioral” conditions.
AT&T and Time Warner say
in court filings there is no valid
legal argument for preventing
the combination of complementary companies. They deny anyone’s customers would pay
more for TV and dispute the
idea that anything they do will
stop customers from cutting the
cable cord. “AT&T and Time
Warner aren’t seeking to hold
back the tide, as the government asserts, but to ride an irresistible wave,” the companies
say. AT&T says it would lose
money withholding Time Warner programming from rival
pay-TV distributors. As an assurance, the company offered rival video distributors the opportunity, for seven years, to let an
arbitrator pick appropriate fees
for the Turner channels if negotiations fail. The DOJ says the
arbitration offer doesn’t remedy
the merger’s harms to competition.
Where Mr. Delrahim and the
government see a behemoth in
the making, Mr. Stephenson and
the companies envision the
emergence of a streamlined rival ready to take on alreadypowerful competitors. The deal,
they say in court filings, would
give Time Warner access to
AT&T’s infrastructure for selling
directly to consumers and,
equally important, would pro-
AT&T had been making litigation preparations from the outset. The government compared
him to Captain Renault, the corrupt Vichy police prefect in the
film “Casablanca,” quoting his
famous line, “I’m shocked,
shocked to find that gambling is
going on in here!”
vide Time Warner personalized
data about AT&T customers’ interests and preferences.
By joining forces, the companies have said publicly and in
court documents, they can create a unique platform that allows advertisers to buy commercials targeted to specific
viewers, creating an alternative
to Google and Facebook, which
have built businesses using consumer data to sell targeted ads.
High-stakes litigation always
tends to produce bad blood, but
the level of hostility in the AT&T
case has been pronounced.
Messrs. Stephenson and Delrahim have taken public shots at
one another, even if rarely referring to each other by name.
If AT&T buys Time
Warner, would it
lead to substantially
less competition?
’Shocked, shocked’
The two also have appeared
to express fundamentally different recollections of their own
face-to-face conversations. Mr.
Stephenson has said publicly he
never offered to sell CNN, a constant target of criticism by President Donald Trump, as a carrot
to win DOJ approval.
Mr. Delrahim, in a sworn legal affidavit obtained by The
Wall Street Journal under the
Freedom of Information Act,
said Mr. Stephenson indeed
asked him whether the DOJ
would approve the deal if AT&T
sold CNN.
The DOJ in a brief last week
mocked Mr. Stephenson’s professed surprise at getting sued,
noting the CEO previously said
ALASTAIR GALE/THE WALL STREET JOURNAL
Continued from Page One
The case is a pivotal moment
in a recurring clash between
merger mania and government
enforcement, and the drama has
produced two lead actors: AT&T
boss Randall Stephenson and
U.S. antitrust chief Makan Delrahim.
Mr. Stephenson has come to
personify the hard-charging executive whose approach to guiding a corporate titan through a
rapidly changing landscape is to
get bigger. Mr. Delrahim
emerged last year as a surprising foil, a Republican antitrust
enforcer who moved swiftly to
file suit against the deal—the
type of merger challenge some
liberal officials longed to bring
but never did.
The case comes as viewers
are demanding more ways to
watch video programming at
lower prices. Millions have
abandoned cable and satelliteTV contracts for other options.
Some have turned to cheaper
packages online. Others have
dropped traditional programming entirely, finding their entertainment on Netflix Inc., Amazon.com Inc., Hulu and
Alphabet Inc.’s YouTube. Younger customers increasingly
watch video on phones, tablets
and laptops.
The upheaval has left the
pay-TV industry scrambling. Mr.
Stephenson made a $49 billion
play for video distribution by
acquiring DirecTV, the top U.S.
pay-TV satellite service, in 2015.
He’s now trying to make the
company’s wireless and video
bundles more attractive to viewers and investors by adding
Time Warner news, sports and
entertainment assets to the
package.
Given Mr. Delrahim’s objections, the deal has been pending
for 17 months, creating something of an industry chessboard
frozen in time, with competitors
uncertain of their next play.
If AT&T wins, it could embolden rivals such as Comcast
and Verizon Communications
Inc. and clear the way for a market dominated by internet-me-
The DOJ presents its case
first, with a roster of witnesses
likely to include officials from
rival companies.
AT&T and Time Warner will
spend a good portion of their
defense on testimony from their
own executives, including Mr.
Stephenson and Time Warner
CEO Jeff Bewkes, about what
they see as the deal’s benefits.
Judge Leon, a George W.
Bush appointee, is expected to
rule in the next few months. The
companies extended their
merger agreement from April
22 to June 21 to give him more
time.
Mr. Trump’s comments hang
over the case. After AT&T announced the deal in October
2016, Candidate Trump unequivocally said his administration would never allow the deal
to be approved. After the department filed its lawsuit, Mr.
Trump said he shouldn’t comment on the litigation, then
added: “Personally, I’ve always
felt that that was a deal that’s
not good for the country. I think
your pricing is going to go up.”
There is no shortage of observers who believe Mr. Trump’s
position was motivated not by
antitrust principles but by his
distaste for CNN, whose news
coverage he has criticized
fiercely. Mr. Stephenson has
called the tensions between Mr.
Trump and CNN the “elephant
in the room” when it comes to
deciphering why the DOJ sued.
Mr. Delrahim has publicly
said Mr. Trump and the White
House didn’t influence his decision to sue AT&T. The telecom
giant laid the groundwork to
make Mr. Trump’s comments an
issue in the trial, but Judge
Leon denied AT&T’s request to
access certain internal government communications about the
deal. The company hadn’t
shown it had been especially
singled out for disfavored treatment, the judge concluded.
Judge Leon’s ruling could be
a career-defining moment for
Messrs. Delrahim and Stephenson. Both, in a sense, have
pushed all of their poker chips
to the middle of the table.
The AT&T head has made
clear the Time Warner acquisition is integral to his vision for
the company—and equally clear
he believes the government is
treating AT&T unfairly. The bespectacled Oklahoman has spent
his 35-year career at AT&T and
its predecessor companies. His
tenure as CEO includes a 2011
loss to the DOJ that scuttled a
$39 billion bid for wireless rival
T-Mobile, a failure that cost
AT&T more than $4 billion.
Mr. Delrahim previously
served in the department’s antitrust division in the George W.
Bush administration. With the
AT&T case, he brought one of
the most consequential merger
lawsuits in a generation within
weeks of taking office last fall,
under highly unusual circumstances because of Mr. Trump’s
comments about the deal.
The DOJ has been riding a
decade’s momentum in court,
with Obama antitrust enforcers
succeeding in blocking several
deals in which major rivals
sought to merge.
Mr. Delrahim’s opening act
could either take that momentum to historical heights or deliver a painful blow to the department at a time when a new
wave of deal making could be on
the horizon.
Japanese curlers posed with Japanese strawberries on Tuesday.
years ago. And Australia and
New Zealand have clashed over
which has the closer association to Pavlova, a meringuebased dessert named after
lighter-than-air performances
of Russian ballet dancer Anna
Pavlova there in the 1920s.
Japan and South Korea have
had previous diplomatic gastro-tension. South Korea cried
foul when Japan tried to register a version of the Korean national dish of kimchi, a type of
garlicky, peppery, pungent
pickled cabbage, as an official
Japanese food at the 1996
Summer Olympics in Atlanta.
Some culinary overlap is inevitable for the Asian neigh-
bors, which have developed
much in common over centuries of trade, conflict, colonization, and religious and cultural exchanges. The countries
are allies in efforts to denuclearize North Korea but have
clashed in recent years over
the treatment of Korean
women forced to work in Tokyo’s military brothels in
World War II.
The berry flap comes as
Japan is increasingly sensitive
about competition from South
Korea, which has eroded or
wiped out Japan’s advantage in
major industries such as electronics and autos. Even Korea’s
K-Pop music has grabbed inter-
.
A9A | Friday, March 16, 2018
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
Tough to Curb Repeat Offenders
Driving violations
caught on a camera
are tied to a vehicle,
not individual drivers
Last week’s crash in Brooklyn that killed two children
has revived calls for a crackdown on traffic violations
across the New York City. But
an analysis of city data shows
how difficult it has been for
law enforcement to deter even
the most egregious offenders.
City records of violations issued by automated red-light and
speed-zone cameras show that
the license plate that was on the
car involved in last week’s fatal
crash had been cited four times
for running red lights and four
times for speeding in school
zones between July 29, 2016,
and the end of February 2018.
Across the city during that
19-month period, more than
19,000 license plates on passenger vehicles racked up
eight or more violations for
running red lights, speeding in
school zones or a combination
of the two, a Wall Street Journal analysis of the data shows.
There were 36 license
plates that were issued 40 or
more of those types of citations during the period. One
passenger car with a New York
license plate racked up 65 violations for speeding in a
school zone.
Yet, state law makes it possible for serial violators to
avoid harsh punishment. That
is because driving violations
caught on a camera are tied to
a vehicle, not to individual
drivers. The fine for camera
tickets is $50, and if it is paid
the city doesn’t report the violation to the Department of
Motor Vehicles.
The city can report unpaid
tickets to the DMV and, according to a spokeswoman for New
York Gov. Andrew Cuomo, the
state can suspend a vehicle registration for three unpaid redlight or speed-camera violations
BY CORINNE RAMEY
MARK KAUZLARICH FOR THE WALL STREET JOURNAL
BY MELANIE GRAYCE WEST
AND TOM MCGINTY
NYPD officials investigating a fatal Brooklyn car crash that killed Abigail Blumenstein, age 4, and Joshua Lew, 20 months old.
within an 18-month period. The
suspension stems from the failure to pay the violation.
Drivers themselves are issued summonses only when
police conduct vehicle stops.
Convictions for speeding, for
example, can appear on a
driver’s record, result in penalty points on a driver’s license and cost hundreds of
dollars in fines and surcharges. Convictions on three
speeding tickets issued within
an 18-month period trigger a
license revocation.
Last week, city officials expressed frustration with the
limitations of tying traffic-camera violations to drivers. New
York City Mayor Bill de Blasio
said he wished the driver in the
Park Slope crash, 44-year-old
Dorothy Bruns of Staten Island,
was under arrest.
Ms. Bruns hasn’t been
Please see SPEED page A9B
Caught in the Act
Many passenger vehicles in New
York City were cited multiple
times for red-light and
school-zone-speeding violations
in the past 19 months.
NO. OF
CITATIONS NO. OF CARS
1
867,150
2-5
6-10
449,318
37,542
11-20
6,241
21-30
483
31-40
97
41-66
31
Source: WSJ analysis of New York City
traffic-citations data
Red-Light Cameras
Initially Were Used
As a Policing Tool
Richard Retting of Sam
Schwartz Consulting was the
traffic safety director for New
York City when the first red
light camera law was passed
in 1988.
Back then, he said, the
cameras were devised not
only to provide a safety benefit but to be a tool to supplement traditional policing and
provide information to authorities about habitual offender
hot spots.
Mr. Retting said pushback
on camera laws tends to
come from conservatives,
from politicians serving rural
districts and from some lib-
eral advocates who argue
that photographing passengers in cars is an invasion of
privacy.
That is why the laws in
New York and elsewhere tag
violations to the registered
owner of a car, not a driver,
Mr. Retting said.
Lower fines, too, are more
palatable to legislatures, said
Mr. Retting, adding that “what
motivates positive changes in
driver behavior is the certainty of a ticket rather than
the severity of a ticket.”
Still, research has shown
that the vast majority of ticketed offenders are driving
their own vehicles, according
to Mr. Retting.
“It’s not as if there’s some
nebulous link between who
owns a car and who drives
it,” he said.
THE WALL STREET JOURNAL.
Mayor Wants Registrations Suspended for Chronic Violators
ANDY KATZ/PACIFIC PRESS/ZUMA PRESS
BY MARA GAY
New York City Mayor Bill de
Blasio said Thursday he will
push for a package of tougher
traffic-enforcement laws in Albany, including registration
suspensions for vehicles with
repeated red-light and speedcamera violations.
Mr. de Blasio, who argued
the measures would save lives,
said he was personally shaken
by the deaths two children on
March 5, when a driver plowed
through a crosswalk in the
Park Slope neighborhood of
Brooklyn.
One proposal would allow
the city to install speed cameras at an additional 150 school
zones, nearly double the number of zones allowed under
current state law.
Another would create esca-
Defense
Highlights
Nanny’s
Condition
Mayor Bill de Blasio
lating fees for red-light and
speed-camera violations, and
suspend the vehicle registrations of motorists who have six
or more such violations. Under
current law, only violations recorded by police officers can
lead to a suspended license or
vehicle registration.
A third piece of legislation
would require doctors to notify
the state Department of Motor
Vehicles when a medical condition could lead a motorist to
lose control behind the wheel.
The driver in the Park Slope
accident told police she had a
seizure at the time of the incident. Her car has been linked
to several traffic violations in
the past two years, including
four for failing to stop at a red
light and four for speeding in a
school zone.
Mr. de Blasio and his wife,
Chirlane McCray, raised their
two children blocks from the
intersection where the children
were killed.
“I’ve talked to a lot of my
neighbors. Everyone’s taking it
very personally and for good
reason,” Mr. de Blasio said at a
news conference in Brooklyn.
Tamra Johnson, a spokeswoman for AAA, said California, Delaware, New Jersey, Nevada, Oregon and Pennsylvania
have laws requiring doctors to
23
Number of pedestrian fatalities
in New York City since Jan. 1
report potentially hazardous
medical conditions for motorists in certain cases.
The legislation would require approval from state lawmakers.
Assemblywoman Deborah
Glick, a Manhattan Democrat,
said it could be difficult to find
support for the proposals in
the Republican-controlled state
Senate. Ms. Glick has introduced two bills to increase the
number of speed cameras in
school zones in recent years.
Both won approval in the Democratic-controlled state Assembly but died in the Senate.
“The public wants this and
yet we still can’t get this done,”
she said. “It’s inexplicable.”
A spokesman for Senate Republicans said their leadership
stood behind GOP members
from New York City who have
generally opposed red-light
and speed cameras, saying they
prefer added police presence
instead.
Since Jan. 1, 23 pedestrians
have lost their lives in traffic
deaths across New York City,
officials said.
Defense attorneys representing the former New York City
nanny on trial for murder began presenting their case
Thursday, reconstructing the
days after the woman fatally
stabbed her two young charges.
Yoselyn Ortega, 55 years old,
has pleaded not guilty by reason of insanity in the 2012
deaths of Leo and Lucia “Lulu”
Krim, 2- and 6-year-old children
who lived in a luxury apartment
building on Manhattan’s Upper
West Side. She admits killing
the children but says she wasn’t
in her right mind when she
committed the crime. Prosecutors argue she understood her
actions and was motivated by
issues over workload with the
children’s mother.
Throughout Thursday’s testimony, defense attorney Valerie Van Leer-Greenberg highlighted Ms. Ortega’s mental
state, her prolonged unconsciousness after she stabbed
herself following the killings
and the potent medications
she was given in the hospital,
including after doctors operated on her.
“The mother returned home
to find her two children
stabbed and dead on arrival,”
said a hospital record shown
in state Supreme Court in
Manhattan on Thursday. “The
police were called and on arrival, the patient was laying in
the bathroom, breathing but
unresponsive, with a stab
wound to her neck and a
kitchen knife in her vicinity.”
Doctors operated on Ms.
Ortega’s neck shortly after she
arrived at NewYork-Presbyterian/Weill Cornell Medical
Center on the evening of Oct.
25, 2012. They later learned
she had collapsed, bruising an
artery and breaking her neck,
said Philip Barie, a surgeon
who served as the defense’s
first witness.
“She wasn’t able to answer
questions at the time,” added
Dr. Barie, who treated Ms. Ortega that day.
Ms. Van Leer-Greenberg
placed a photo of Ms. Ortega
on the courtroom projector. The ex-nanny’s eyes were
closed, with frizzy hair splayed
around her head. A breathing
tube and other medical devices
surrounded her neck and face.
In the courtroom, Ms. Ortega, sitting with her hair
slicked back neatly into a ponytail, stared at the photo
without visible emotion.
Ms. Van Leer-Greenberg repeatedly asked about the medications Ms. Ortega received in
the hospital, requesting the
doctor explain each one.
“Fentanyl is a very powerful
opioid, chemically similar to,
but about 100 times more potent than, morphine,” Dr. Barie
said, adding that it was a standard drug used in general anesthesia.
“No matter where I am in the world,
I know that my First Republic
personal banker is just a phone call away.”
P OW H E R F U L F O U N DAT I O N
Soledad O’Brien, Co-Founder and Chairman, PowHERful Foundation; Journalist/Producer
Pictured with Scholars (standing left to right): Vanesa Cruz;
Ariana Quiñones; Tassion Minor; Rochelle Ballantyne
(855) 886-4824 | firstrepublic.com | New York Stock Exchange symbol: FRC
MEMBER FDIC AND EQUAL HOUSING LENDER
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | A9B
NY
* *
GREATER NEW YORK
Please! I Can’t Eat Any More Chocolate
Journalist turned judge on the ‘foodie Oscars’ tests the boundaries of his palate
BY CHARLES PASSY
Chef Jim Gerry prepares pasta sauce samples at the Sofi Awards. Judges take notes after tasting. Sofi Project Manager Devyani Shenoy holds an Oscar-like statuette.
AMIR LEVY FOR THE WALL STREET JOURNAL (3)
They say
you can never
have enough
chocolate. After spending
the better
part of an afternoon sampling 30-plus bars, I can put
that notion safely to rest.
My labors—and yes, they
were just that—came as part
of my duties as a judge for
this year’s Sofi Awards.
Never heard of the Sofis?
You’re not alone. The award
program, created and run for
46 years by the New Yorkbased Specialty Food Association, is often described as
the foodie equivalent of the
Oscars or the Grammys. But
it doesn’t have much cachet
among consumers—the association says
FOOD &
surveys show
CULTURE
only about 6%
have heard of
it.
“It’s absolutely not the
Academy Awards,” says association spokesman Ron Tanner.
Still, in a $127 billion
gourmet-food industry that
has seen sizable growth in
recent years, rising 15% from
2014 to 2016 alone, according to the association, the
Sofis have their place. The
wholesale buyers at markets—think Whole Foods—
value the Sofis as a kind of
culinary bellwether, with the
awards often heralding products that will be the next big
thing. Among the now-familiar brands to have won the
Oscar-like Sofi statuette in
their early years are KIND
bars and Popchips.
Of course, you can’t have
an awards program without
a judging panel. Which is
how I ended up as part of a
group of 12 gourmet-savvy
individuals, from food scientists to chefs to fellow food
writers, in the Specialty
Food Association’s office on
Wednesday.
Over the course of eight
hours, we were tasked with
working our way through
about 200 products, submitted for consideration by association members, that represented a handful of the
program’s 39 categories.
It seems like an enviable
assignment—free caviar, anyone? But as a former Sofi
judge I knew what awaited
me. Sure enough, in the first
grouping we judged that
day—dairy or dairy alternative—I was immediately reminded of the challenge.
This is the category that
yogurt falls into—well, yogurt and things like sour
cream, butter and even
camel milk. And I like yogurt
as an occasional healthy
snack. But faced with the
prospect of trying more than
a dozen versions—some with
the strange consistency of
Pepto-Bismol, if not the taste
as well—the tongue wants to
revolt.
Then came pasta sauce.
This was less an issue of texture or flavor than of stomach capacity. Some judges
worked their way through
the category by quickly dipping their spoons into each
sample and recording their
votes on the provided iPads.
I took to making almost a
mini meal of each entry—
you can’t try pasta sauce
without pasta, I figured (and
the association team made
sure to provide the latter).
Let’s just say I don’t think
I’ll be having Italian for dinner anytime soon.
The seafood category
proved challenging in a different way. There is nothing
quite like entering a room
filled with plates of sardines,
salmon and other fishy fare.
Your nose adjusts to the
smell, eventually.
And the chocolate, specifi-
cally, the dark-chocolate category? By far, this was the
hardest to judge. Dark chocolate doesn’t hide in the corners of your mouth. It overwhelms your palate with its
strong, sweet and earthy flavors, all the more so if it
comes in bars with spices
from seemingly every corner
of the Earth. After a few samples, I had only one thought:
NO. MORE. CHOCOLATE.
A Show Designed for High School Is a Broadway Hit
When Irene Sankoff and David Hein wrote “Come From
Away,” the married couple envisioned a show that would be
performed in high schools
across Canada. They figured a
high school could put on the
production with just 12 people,
or with an entire class if needed
to portray the townspeople of
Gander, Newfoundland.
But the show turned into a
hit Broadway musical, marking
its first anniversary this week.
“Come From Away,” based on
real events, tells the unlikely
story of how Gander hosted
6,500 strangers who arrived unexpectedly from around the
world, after their planes (38 in
total) were forced to reroute
and land there following the
Sept. 11, 2001, terrorist attacks.
Now, Ms. Sankoff and Mr.
Hein are writing a feature-film
adaptation of “Come From
Away,” to be directed by the
musical’s Tony Award-winning
director, Christopher Ashley. A
documentary about the making
of the musical, directed by Moze
Mossanen, is also in the works.
SPEED
Continued from page A9A
charged, but her license has
been suspended, police said. She
told authorities she had a seizure at the time of the incident,
according to police. Her most
serious violations have been
paid. She declined to comment.
Abigail Blumenstein, age 4,
and Joshua Lew, 20 months old,
GREATER NEW
YORK WATCH
MASS TRANSIT
“Nothing has been exactly as
we predicted,” Mr. Hein said,
looking back at the show’s progression and success.
“I think it’s still sinking in,
frankly,” Ms. Sankoff said
“Come From Away” has been
performed in six cities, attracting audience members such as
Canadian Prime Minister Justin
Trudeau, the Clinton family, and
Ivanka Trump. But the memory
that Ms. Sankoff and Mr. Hein
look back on most fondly is
when they brought the show
back to Gander for two benefit
performances. Five thousand
people from Gander and neighboring areas came to see their
story performed on the stage.
“It was the first ever Broadway show to come to Gander,
Newfoundland, and we were
sharing the stories that they
shared with us, reflecting their
culture and their music back to
them,” Mr. Hein said. “We were
saying, ‘You may think it’s ordinary, but we think this is an extraordinary story, what you
guys did.’ ”
Report Slams LIRR
For Repeated Delays
MATTHEW MURPHY
BY BARBARA CHAI
But I got through the category, even after all us
judges had to return for
some tiebreaking decisions.
And while my colleagues
also admitted to their share
of palate fatigue, we maintained our professionalism
throughout the day.
I would love to tell you
the winners, but you will
have wait until the official
Sofi announcement in April.
The hit musical ‘Come From Away’ is marking its first anniversary this week on Broadway.
798
200
48
Mr. Byrne said police officers
are permitted to investigate repeat traffic violations, but “we
just can’t take action without
evidence that you were the person behind the wheel of the car.”
The city launched its redlight camera program in 1994,
with school-zone cameras
added about a decade later.
The cameras, according to city
reports, are effective deterrents to keep motorists from
speeding or running red lights
and have been widely championed by traffic-safety experts
and pedestrian advocates.
There were 196 red-light
cameras in the city in 2015,
with more than 60 in both
Brooklyn and Queens, according to a 2016 report from the
city’s Department of Transportation. The same report called
the cameras a “valuable tool
for deterring lawbreaking and
protecting New Yorkers at signalized intersections.”
Speed cameras are in 140
school zones throughout the
city, according to a city report.
“Speeding during school
hours at typical fixed-camera
locations drops more than
63%,” the report said. But
speed cameras are in only
about 7% of school zones, said
Paul Steely White, executive
director for Transportation Alternatives, an advocacy group.
He and others are calling for
tougher penalties, he said.
Number of Performances of ‘Come
From Away’ across North America
The number of people who are
employed by the production
Number of weeks the weekly
gross was more than $1 million
Barbara Chai is the arts and
culture editor at MarketWatch.
were killed in the crash. Abigail’s mother, Ruthie Ann Blumenstein, and Joshua’s mother,
Lauren Lew, were injured.
New York Police Department Deputy Commissioner
for Legal Matters Lawrence
Byrne said that “forfeiture of
the vehicle” is one penalty
that could be incorporated
into state law if it is found
that there is a recidivist violator for speeding in a school
zone or running red lights.
A report by New York’s state
comptroller says 2017 marked
the Long Island Rail Road’s
worst on-time performance in 18
years with over 9 million riders
inconvenienced by delays and
cancellations.
Comptroller Thomas DiNapoli
said Thursday the situation
caused an estimated $75 million
in lost productivity. The LIRR’s
on-time performance fell to
83.9% in January of this year,
the lowest level in 22 years.
The Metropolitan Transportation Authority says it has heard
its customers “loud and clear”
and is taking a “host of aggressive actions” to improve service.
—Associated Press
CULTURE
Ousted Conductor
Sues the Met Opera
Conductor James Levine sued
the Metropolitan Opera on
Thursday after a sexual misconduct investigation sank his storied career, saying the renowned
company exploited baseless allegations to tarnish him and then
fired him without so much as a
phone call.
The suit accuses the company and its general manager
Peter Gelb of defamation and
breach of contract. It seeks at
least $5.8 million in damages—
and “to restore Levine’s name,
reputation and career.”
Mr. Gelb and Met representatives didn’t immediately respond
to a request for comment.
—Associated Press
.
THE WALL STREET JOURNAL.
A10 | Friday, March 16, 2018
LIFE&ARTS
TELEVISION REVIEW
FILM REVIEW | By Joe Morgenstern
By John Anderson
‘End’: A Small Beauty
About the Great War
CNN
AS A FOREIGN correspondent, Christiane Amanpour
has reported on every kind of
conflict, but few as perilous as
the one at the center of her
CNN series “Sex & Love
Around the World.” Peering
into bedrooms from Berlin to
Beirut, she proves once again
that she can ask the difficult
questions—except perhaps the
one viewers will be asking
right away: Why the career
makeover? Why is she channeling her inner Oprah?
Christiane Amanpour’s new series
is ‘Sex & Love Around the World.’
It’s not a good fit, cosmically
speaking, though she’s on to a
very good story. In a piece written for CNN last month, Ms.
Amanpour, the chief international correspondent for the
news network, explained that
she was inspired by the plight
of Syrian refugees in tent cities.
How did they conduct their sex
lives in a place where privacy
was all but nonexistent? This
led to that, which led to a sixpart series that, shall we say,
uncovers how people comport
themselves in Shanghai, New
Delhi and Tokyo.
It’s actually serious stuff, the
irony being that in each “exotic” locale she visits Ms.
Amanpour finds much that’s exactly the same—dysfunctional
males, unsatisfied women, cultural obstacles to intimacy, and
strenuous efforts by those on
the sexual margins to find ways
of liberating themselves and
their societies. That said, there
are also site-specific issues at
play: The lack of “skinship” or
physical affection in Japanese
culture, which seems to affect
everything in that country’s romantic life; the lack of a concept of dating in India, where
arranged marriages are still
widely accepted, if not the
norm. India actually presents
Please turn to the next page
ANTIWAR FILMS address the
subject at their peril, however impressive their production resources may be. The horror can
never be grasped in its full dimensions, so the task becomes finding
some pungent part that can hint at
the terrible whole. The resources
deployed by “Journey’s End” are
visibly, almost touchingly limited—
a few settings that simulate a line
of World War I trenches, plus a
warren of underground shelters
where British officers and men
await a German attack. Yet this
modest drama invokes the power
of incipience—fear of what will
happen next—and amplifies it with
lean writing in the service of flawless acting. Antiwar films don’t
have to be great to be worthy; this
one is very, very good.
The action, such as it is, unfolds
in northern France in the spring of
1918, the last year of the war. Unspeakable slaughter on both sides
of the conflict has led to stalemate, though the British war office
continues to bring in fresh troops.
We see the situation through the
wide and innocent eyes of Raleigh
(Asa Butterfield), a young lieutenant from a good family who is still
in his teens.
Inflamed by the grand delusion
that front-line fighting will be an
adventure, Raleigh uses family influence to get himself assigned to a
unit commanded by the love of his
sister’s life, a captain named Stanhope (Sam Claflin) who was previously an upper classman and
cricket idol at Raleigh’s school.
When Stanhope discovers that Raleigh has sought him out, his reaction is utter dismay. The older man,
driven to drink and the edge of
madness by earlier battles, knows
all too well what lies in store.
“Journey’s End” was directed by
Saul Dibb from a screenplay by Simon Reade, who adapted a 1928
play by R.C. Sherriff and a novel by
Sheriff and Vernon Bartlett. The
role of Stanhope was first performed by a 21-year-old Laurence
Olivier, and the play, based on Sherriff’s experiences in the trenches,
went on to great success. (A 1930
film version was directed by James
Whale.) It would have been fascinating to see Olivier in the role, but
Mr. Claflin, who played the clever,
cynical screenwriter in “Their Finest,” is an electrifying successor.
His Stanhope is a study in coiled
energy with nowhere to go. Helpless to protect his doomed and illequipped men, rageful at the lunacy
of a war that is consuming a gener-
Above, Asa Butterfield as Raleigh;
right, Paul Bettany as Osborne.
ation, the captain lashes out at everyone around him, and worries as
well that Raleigh will speak ill of
him to his sister.
The cast as a whole is superb.
Paul Bettany plays Osborne, an
older officer and former schoolmaster, admired by all, who’s
called Sir by his subordinates and
Uncle by his peers. Tom Sturridge
is Hibbert, who is mortally afraid
like everyone else but, unlike everyone else, seeks transfer to a
field hospital by feigning illness.
Toby Jones is Mason, the company
cook who manages to come up
with comfort food that may be
coming from discomfiting sources.
Food plays a role in the film’s examination of class distinctions.
The officers eat well, especially
before an impending battle: Fresh
fish is accompanied, on one occasion, by fine wine while a chanteuse sings an Aristide Bruant
song on a gramophone. Food is
equally a measure of Raleigh’s
coming of age. After a raid on German lines that was supposed to be
quick and surgical, the young lieutenant chooses to eat not with his
fellow officers, but with the men
who fought alongside him.
GOOD DEED ENTERTAINMENT (2)
Christiane
Channels
Oprah
Watching “Journey’s End,” one
inevitably thinks of “All Quiet on
the Western Front” and Stanley
Kubrick’s classic “Paths of Glory,”
both set in the trenches of that
same monstrous war. But the film
also recalls John Boorman’s marvelous, and nearly forgotten,
“Hope and Glory,” a semi-autobiographical account of a boy’s life in
and around London during World
War II. There’s no combat action
in Mr. Boorman’s film, only such
apparitions as barrage balloons
floating in the sky and a Luftwaffe
pilot parachuting into a suburban
garden. But the common denominator is tragic enchantment with
war. The little boy thinks the Blitz
is thrilling. The older boy, Lt. Raleigh, can’t wait to strap on his revolver and race across no-man’s
land. At one point in “Journey’s
End” Raleigh fires a Very pistol for
the first time. Staring, rapt, as the
flare arcs through the night sky, he
becomes the sweet, round face of
cannon fodder.
The WSJ Daily Crossword | Edited by Mike Shenk
MATTHEW MURPHY
A scene from Broadway’s
‘Escape to Margaritaville’
THEATER REVIEW| By Terry Teachout
WASTING AWAY
AT ‘MARGARITAVILLE’
decades ago—a group of
hard-nosed businessmen is
betting that his amiable
brand of what he calls
“drunken Caribbean rock ’n’
roll” is still popular enough
to rope in a slice of the
tourists who couldn’t wangle tickets to “Hamilton.”
I wouldn’t care to bet
against the folks who’ve sunk
their own money into “Escape to Margaritaville.” On
the other hand, I’m a critic,
not a producer, and it’s my
duty to report that they’re
backing one of the most mediocre musicals ever to come
to my attention. The book is
witless, the cast mostly
bland, and while some of the
songs are quite good, they’re
all used in the most banal
ways imaginable. I’ve seen
worse, but if that’s your idea
2
3
4
5
6
7
8
9
10
11
12
13
14
Email your answer—in the subject line—to crosswordcontest@wsj.com
by 11:59 p.m. Eastern Time Sunday, March 18. A solver selected at random
will win a WSJ mug. Last week’s winner: Jeremy Koenig, Washington, DC.
Complete contest rules at WSJ.com/Puzzles. (No purchase necessary.
Void where prohibited. U.S. residents 18 and over only.)
s
New York
THE JUKEBOX musical, in
which the back catalog of a
songwriter and/or pop star
is repurposed as the score
to a stage show, is one of
Broadway’s staple items.
Rarely are such shows any
good, but some have been
hits, and hope springs eternal in the cash-hungry
hearts of theatrical producers and superannuated rockers. That’s why “Escape to
Margaritaville,” whose score
consists of 26 songs by
Jimmy Buffett, has arrived
on Broadway after preliminary runs in La Jolla, Calif.,
and Chicago, Houston and
New Orleans. Even though
the 71-year-old Mr. Buffett is
very old news—“Margaritaville,” his first and biggest
hit single, was released four
of a blurb enthusiastic
enough to make you want to
blow a couple of hundred
bucks on a night at the theater, you don’t get out
enough.
“Escape to Margaritaville”
is billed as being based on
“the music and lifestyle of
Jimmy Buffett,” which means
in practice that it’s about a
guitar-strumming beach bum
(Paul Alexander Nolan) who
makes his living rocking for
the horny clientele of a
crummy island hotel somewhere in the Caribbean. To
this tattered paradise come
two women, one of whom
(Lisa Howard) is about to get
married to a jerk (Ian Michael Stewart) who won’t tie
the knot unless she loses
weight. The other (Alison
Luff), her best friend, is a
priggish, workaholic environmental scientist who hopes
to stop her buddy from
spending her life with Mr.
Wrong by encouraging her to
have a fling with the dopey
bartender of the Margaritaville Hotel (Eric Petersen).
If you can’t figure out the
rest, you haven’t watched
nearly enough fourth-rate
sitcoms.
This brings us to Greg Garcia and Mike O’Malley, who
write fourth-rate sitcoms
(this is their first musical)
and whose idea of a joke is
embodied in the following
one-liner: “You spend a ton
on therapists and yoga when
the cheapest and most comPlease turn to the next page
PUZZLE
CONTEST
Down
1 Mama on
15
16
“Monday,
Monday”
17
18
34 Stands for the
2 Walkman19
20
21
22
Stars and Stripes
wearing bus
driver
36 Gush (forth)
23 24
25
3 Adverb with an
37 Prefix meaning
26 27 28
29
30 31 32
apostrophe
“half”
33
34
35
36 37
4 Puffs on an e-cig 39 Prez who named
Camp David
5 “Livin’ Thing”
38
39 40
41
40 Before
band
42
43
41 Part of a
6 Over thataway
Wimbledon
7 Unfeeling
44
45 46
47
match
8 Popular pasta,
48 49 50
51
52
45 Ooze
briefly
46 Fashion’s Fisher
53
54 55
56
57 58 59 60
9 Crossword
48 Some naval
sword
61
62
63
64
officers
10 Unable to decide
65
66
11 Mountain figure 49 Author’s
conclusion
12 Hood under a
67
68
50 Discharge
cap
52 French academy
13 Fine-plumed
HOLLYWOOD INSIDERS | By Matt Gaffney
54 Feel ___ on one’s
bird
shoulder
The answer to
23 Do refinery
51 “Crazy” singer
14 Pairs
55 “Never ___
this week’s contest
work
Patsy
21 Lack of flow
serious crisis go
crossword is a Best 25 Hill creators
53 Like the best
24 Janet of
to waste”
Picture-winning film. 26 ___-ops
shots in hockey
“Tumbleweeds”
58 Nirvana’s “Been
56 Deborah’s
Across
29 Be unjustifiably
and “Albert
___”
co-star in “The
distressed over
1 Gets across
Nobbs”
59
Computer
King
and
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33 Embezzlement,
8 Like some
26 3 for an FG, e.g.
programmer’s
57 Batter’s
e.g.
parking
27 Smith of Fox
acronym
backdrop
35 Like a pixie cut
15 Pigged out
News
60
Dictionary abbr.
61 More trim
16 Words that may 38 Where to find
28 “Uh-huh”
62 Q-U links
Oscar winners
63 You can take that
be owed
30 Roy G. ___
64 PBS
to the bank
42 Wife of Theseus
17 First part of a
31 Mineral holder
documentary
process
43 One of the three 65 Problem at a
series
32
Wacky
Tracey
sold-out
show
18 Brain
Muses, originally
sections
66 Class with hard
44 Nautical term
Previous Puzzle’s Solution
material
19 Still irked
for a large wave
C H I C
D I S C S
P O D
L
E D A
A L L O T S
A N Y
breaking over the 67 Takes no action
20 ___ Moines
O R E M
S E A L E T T U C E
deck of a ship
for the time
P E S E T A
B A R R E L E D
22 Wished one
T A N S
N O R A
being
47 Verbal agility
could trade
H A R R I E T T U B MA N
places with
68 Make poisonous
B O N U S
P R I M E
B Y E
48 Alerting sound
1
E L S
D EW
S E
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M I S
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U T S
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U
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | A11
LIFE & ARTS
THEATER
WARNER BROS. PICTURES (2)
MATTHEW MURPHY
Continued from page A10
mon cure for stress is always a zipper away.” If you
think that’s funny, stop
reading—I’ve got a show for
you! If not, forewarned is
forearmed, for Messrs. Garcia and O’Malley have got a
million of ’em, and they’re
all here, strung end to end.
sives in the entertainment
industry really meant what
they said about fat shaming, they’d be casting her
in starring parts. Since
they’re hypocrites, she’s
relegated to tedious second-banana roles like this
one, on which her estimable talents have been
squandered.
Mr. Buffett’s songs vary
widely in quality, but some
are very fine, in particular
Alison Luff and Paul Alexander Nolan
FILM REVIEW | Joe Morgenstern
A Movie Buried
By Absurdity
Alicia Vikander is Lara Croft in a reboot of the franchise
WHAT IN the
world is Alicia Vikander doing in
“Tomb Raider”?
Raiding a tomb is
one answer. Making
lots of money is
another, and why
shouldn’t an exceptionally gifted actress get the gift of
a big payday? It’s
not as if she
doesn’t give this
action adventure
her all. As a new
incarnation of Lara
Croft—an earnest successor
to the bemuscled and ironyfree Angelina Jolie—she endures terrible punishment
while vanquishing vile men
in brutal combat. What this
Lara does best is leap into
voids with desperate abandon, but Ms. Vikander has
leapt into the void of a franchise reboot, based on a
video-game reboot, that generates no joy, makes negligible sense, and seals its own
tomb with a climax of perfect
absurdity.
When the story begins,
Lara is working as a bicycle
messenger in East London
and barely able to pay for
martial-arts training at a local gym. The problem is that
her heart still belongs to the
Top, Alicia Vikander; above,
Walton Goggins (with
flashlight) plays Vogel.
daddy who disappeared seven
years earlier while he was
searching for the tomb of a
Japanese queen on a mythical
island off the coast of Japan.
Lara can’t acknowledge that
her father is dead, so she
won’t sign the papers that
would shower her with
wealth from his vast fortune.
(Lord Richard Croft is played,
in flashbacks and elsewhere,
by Dominic West.)
Bicycle messengering is a
risky but stimulating way to
make a living, and Lara’s calling leads to a bicycle chase
that’s as close as the movie
comes to an original action
sequence. But then
she goes off to find
her father and the
narrative turns into
a used plot lot.
First there’s a
charmless recycling
of “The African
Queen”—Lara and a
boozy captain, Lu
Ren (Daniel Wu),
stuck with each
other on a seagoing
rustbucket out of
Hong Kong. That’s
followed by generic
jungle adventures
in which Lara contends with
an unpleasant villain named
Vogel (Walton Goggins) and
makes a discovery that
proves to be unmanageable—
not by the heroine, but by
the writers who pointed her
toward it.
The screenplay is credited
to Geneva Robertson-Dworet
and Alastair Siddons. The director was Roar Uthaug, a
Norwegian filmmaker whose
previous feature was a
small-scale but distinctive
disaster drama called “The
Wave.” The greatest distinction of “Tomb Raider” may
be its trombones. In an unseen orchestra that bleats
and blares, an urgent trombone chorus heralds every
leap into banality.
Weather
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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Philadelphia
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10s 30s
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U.S. Forecasts
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
41 26 c
36 29 pc
Atlanta
70 56 pc 74 54 t
Austin
88 62 pc 86 65 t
Baltimore
45 26 pc 49 28 pc
Boise
51 33 c
48 34 c
Boston
39 24 pc 36 15 s
Burlington
30 21 c
23 7 pc
Charlotte
70 46 pc 66 48 sh
Chicago
39 31 pc 45 28 pc
Cleveland
33 24 pc 39 24 c
Dallas
86 57 pc 85 64 pc
Denver
59 30 pc 65 33 s
Detroit
39 25 s
47 27 s
Honolulu
84 69 pc 84 72 pc
Houston
83 67 c
85 69 t
Indianapolis
46 34 c
47 27 sh
Kansas City
61 38 t
54 35 c
Las Vegas
65 50 pc 61 44 c
Little Rock
73 55 t
78 49 c
Los Angeles
61 50 c
61 47 pc
Miami
79 65 s
81 64 s
Milwaukee
37 29 pc 43 31 s
Minneapolis
42 25 s
49 30 s
Nashville
65 58 r
76 46 sh
New Orleans
75 65 t
79 64 t
New York City
39 28 pc 46 26 s
Oklahoma City
76 42 s
68 47 pc
Ice
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
Hi
39
78
40
74
37
37
53
55
45
58
55
57
57
31
47
Today
Lo W
31 r
52 s
28 pc
53 pc
21 pc
17 c
39 c
40 sh
40 r
44 pc
46 sh
29 s
38 pc
26 sn
31 pc
Tomorrow
Hi Lo W
48 32 c
84 56 pc
50 27 s
71 50 pc
43 21 c
29 9 s
53 39 c
56 34 c
55 38 c
52 30 r
57 44 c
61 33 pc
53 39 c
39 27 c
47 30 c
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
44
67
77
92
49
37
51
77
86
49
42
Today
Lo W
25 sh
56 c
52 pc
77 s
32 c
22 sf
27 sh
60 s
71 s
36 r
30 r
Tomorrow
Hi Lo W
33 24 c
70 60 pc
73 52 s
93 78 pc
40 32 pc
30 20 c
31 25 sn
81 65 t
87 71 pc
38 29 sh
36 30 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
Hi
51
52
84
78
59
89
60
83
55
51
90
77
80
59
19
92
55
90
86
61
87
52
53
91
80
77
63
33
49
34
52
Today
Lo W
30 sh
40 sh
62 s
67 pc
54 pc
77 t
44 pc
54 s
33 sh
38 sh
78 t
61 pc
53 pc
47 s
1 c
78 pc
40 sh
79 t
65 pc
49 c
72 s
30 s
46 c
78 t
71 c
64 pc
39 c
23 pc
34 pc
20 c
37 pc
Tomorrow
Hi Lo W
34 24 c
43 35 r
85 64 s
75 68 pc
67 59 c
87 76 t
64 48 s
64 53 sh
37 29 c
50 37 sh
91 77 s
90 70 c
81 53 pc
51 44 r
17 0 pc
92 80 pc
42 31 sh
86 77 t
83 58 s
57 47 t
86 73 pc
52 39 pc
59 51 c
90 78 pc
87 72 s
75 66 c
51 45 s
38 21 s
49 36 pc
28 15 c
46 30 sh
Mr. Nolan and Ms. Luff
are pretty and forgettable.
Ms. Howard is something
else again. A sexy plus-size
charmer with a warm, ripe
voice, she came to my attention in “It Shoulda Been
You,” a wretched 2015 musical in which she played
the good-egg sister who
couldn’t get a boyfriend. If
the allegedly woke progres-
“Margaritaville,” a deceptively cheery-sounding vignette about a sun-loving
wastrel one step away from
alcoholism who knows full
well that it’s “my own
damn fault.” It says everything about this show that
so smart a song has been
stripped of irony and
turned into the first-act finale—but, then, “Escape to
CHRISTIANE
one that takes more of a
missionary position on
global sexuality.
“Sex & Love Around the
World” is a very revealing
program, a standout moment being Ms. Amanpour’s
interview with two young,
highly articulate and admittedly westernized Indian
women, who offer a crash
course in the ways education, caste and economics
have created a sexual
schism among their people—the Tinder friendly,
say, vs. the traditional. The
shows are also quite frank,
but they’re also directed in
Continued from page A10
the series with something
of a problem, given its very
specific and limited ideas
about courtship: Ms. Amanpour is forced to focus on
the issue of rape in New
Delhi; the fringe practices
of what its fans generally
refer to as “kink”; and the
phenomenon of hijra, or
transgender-intersex culture. All of which is fine,
except that the series, overall, seemed intended as a
more mainstream show,
Margaritaville” is a feelgood musical in which you
know in the first 30 seconds that everybody will
get what he or she wants,
so what do you expect?
Christopher Ashley, the
artistic director of La Jolla
Playhouse, where “Escape
to Margaritaville” originated, has staged this sodden mess with the same
lively energy with which he
infused “Come From Away,”
and Kelly Devine’s dances
and Walt Spangler’s sets
are predictably excellent. If
professionalism were all,
“Escape to Margaritaville”
might be worth seeing. Instead, it’s the kind of show
where the ushers parade up
and down the aisles inviting you to pre-order your
margaritas for consumption at intermission. Not a
bad idea, I suspect, though
I passed. Perhaps I
shouldn’t have: If revenge
is a dish best served cold,
then “Escape to Margaritaville” may well be a musical best seen drunk.
Escape to Margaritaville
Marquis Theatre, 210 W. 46th
St. ($79-$249), 877-250-2929
Mr. Teachout is the
Journal’s drama critic. His
staging of “Satchmo at the
Waldorf” closes on Sunday
at Houston’s Alley Theatre.
Write to him at
tteachout@wsj.com.
a way that presents Ms.
Amanpour as a chatty, girly
mistress of ceremonies,
something she has never
been. (When she says
“Amen to that, sister,” one
recoils in horror.) There are
ridiculous asides, both visual and conversational, all
of which are calculated to
imbue the program with a
sense of informality that
feels unnatural. Forced. So
tortured, in fact, you may
need a safe word.
Christiane Amanpour: Sex
& Love Around the World
Saturday, 10 p.m., CNN
.
THE WALL STREET JOURNAL.
A12 | Friday, March 16, 2018
SPORTS
MARCH MADNESS | By Jason Gay
An Open Letter to
Every CEO in America:
Well, you did it
again, moron. You kept
the office open during
the first two days of
March Madness.
What happened? We talk about
this every year. Nobody wants to
work during the opening Thursday and Friday of the NCAA
men’s basketball tournament. Nobody actually does work during
the opening Thursday and Friday
of the NCAA men’s basketball
tournament.
They pretend to work, but trust
me: they’re not doing a #@&! thing.
Look over there, at your No. 2.
Loyal, smart, tireless. A colleague
you can trust. A colleague you can
send an email to at 10 p.m. on a
weekend—and get a response
within 90 seconds.
You’re not even sure if your No.
2 has a family. Or a refrigerator.
Do you think your No. 2 is
working right now? Nope. They’re
watching Penn-Kansas. And DukeIona. Sorry.
Oh, and your No. 3 called in
sick. Breaking news: Your No. 3 is
NOT SICK. Your No. 3 is in pajamas, and just ordered 75 Buffalo
wings.
Same goes for your CIO. Your
CIO actually has a set-up in the office to watch every March Madness game simultaneously. That’s
why they’re the CIO. It’s kind of
impressive, actually.
What about the CFO? Oh, that’s
right: your CFO went to Villanova.
Yeah, forget about the CFO.
They’re actually at the tournament. (And they’re expensing it
under “miscellaneous.”)
Attendance did seem pretty
light at the 10:30 staff meeting,
didn’t it?
Where is everybody today? you
asked. Somebody snickered.
Walk over to any one of your
employees sitting at their desks.
Note how quickly their screen
flashes and changes.
Yup, just looking at this spreadsheet, they say.
They were not looking at the
spreadsheet. They were looking at
Oklahoma-Rhode Island.
Why can’t you realize this?
You’re supposed to be the CEO
who “gets it.” You installed that
ping-pong table. You changed the
coffee in the coffee machines. You
took everyone to the beach for an
ideas meeting and danced to that
GENE J. PUSKAR/ASSOCIATED PRESS
An Open Letter to Every CEO
Villanova head coach Jay Wright, center, huddles his team after a practice for the NCAA tournament. The Wildcats are the top seed in the East region.
Drake song.
Why don’t you understand that
the first two days of March Madness are the two most unproductive days on the calendar?
Don’t believe me? Call one of the
folks in IT. Ask them if they can tell
you how many people in the office
are streaming basketball on their
company computers right now.
Better yet, don’t. That’s creepy.
And you don’t want to know.
Don’t bother going down to HR
to ask what the deal is, either.
The entire HR department has
disappeared.
Your Thursday lunch just canceled. And your Friday lunch canceled, too.
Did you really call a board
meeting for Friday afternoon? Do
you know that half of your board
went to North Carolina?
You’re really trying to get yourself canned, aren’t you?
You’re starting to get a little
sad. You knew CEO would be a
lonely job. But once again, nobody
asked you to join the office March
Madness pool.
Why do they not let me play in
the office pool? you think. I gave
up my nice office and went open
plan, just to show I was one of
them. I sit in a stupid cube! I buy
pizza on Fridays!
You call your CEO friends.
Yeah, nobody’s doing anything,
one says.
It’s like New Year’s Day in here,
says the other.
You call your “management
guru,” the one you met at that
conference in Big Sur last year.
Yeah, I’m watching Ohio StateSouth Dakota State, your management guru says. Can I call you
back?
You look at your copy of The
Wall Street Journal. Even the
Journal is going nuts for the tournament! You turn on cable news.
ELON MUSK: I’M WATCHING
MARCH MADNESS ON MARS
RIGHT NOW.
You sigh. You admit defeat.
Nothing’s getting done the rest of
this week. You may as well go
downstairs to the neighborhood
bar and get a beer.
You walk into the bar. Oh here’s
the 10:30 staff meeting! And your
No. 2 and No. 3. And everybody
from IT and HR.
They see you, and get nervous.
They’re worried you’re about to
fire them.
Relax. I’m not firing anybody,
you say.
You join everyone and watch the
basketball. You order wings. They
let you join the office pool, late.
They laugh a lot of your picks.
It’s OK. This is really fun. You’re
one of them now.
Don’t make the same mistake
next year.
Your pal,
Jason
P.S. Please don’t fire me.
MLB
THIS SLUGGER
MOONLIGHTS
AS A BAT THIEF
Jupiter, Fla.
WHEN MARCELL OZUNA arrived
here for his first spring training with
the St. Louis Cardinals, he embarked
on a secret mission to acquire critical information: What kind of bats
do his new teammates use?
Ozuna, of course, owns his own
collection of bats. He typically
wields a 34-inch, 32-ounce maple
model made by Chandler, a boutique
manufacturer based in Pennsylvania.
But during five seasons with the
Miami Marlins, a period in which
he developed into one of baseball’s
finest young outfielders, the 27year-old Ozuna earned a reputation as a bat thief. He would frequently “borrow” somebody’s bat
—and then hit so well with it that
he wouldn’t want to give it back.
The habit started in 2016, when
Ozuna went on a 16-game hitting
streak using bats bestowed upon
him by Barry Bonds, then the Marlins’ hitting coach. Last May, he
homered in consecutive games with
Ichiro Suzuki’s bat and followed that
up in July with a 455-foot moonshot
with a piece of lumber belonging to
Giancarlo Stanton. Ozuna also
copped to occasionally taking bats
from Dee Gordon and Christian
Yelich, and one former Marlin even
says he heard that Ozuna had one of
Bryce Harper’s sticks in his possession—a rumor Ozuna refuses to
confirm or deny.
The Marlins traded Ozuna this
winter to St. Louis, a perennial contender looking to return to the
playoffs after falling short in two
straight seasons. The Cardinals acquired him because he gives them a
dangerous middle-of-the-order
threat; Ozuna hit 37 homers and
drove in 124 runs for Miami in 2017.
After getting to spring training,
Ozuna quickly began snooping for
fresh targets.
“I’m wondering whose bat he’s
going to be able to use, because
nobody else on that team is as big
as Giancarlo,” Gordon said.
Gordon, now the center fielder
for the Seattle Mariners, predicted
that Ozuna would gravitate toward
A word of warning: With
Marcell Ozuna on your
team, don’t leave your
bats lying around.
Yadier Molina, the Cardinals’ veteran catcher. Ozuna, however, appears most intrigued by what Dexter Fowler has to offer, due to his
bats’ measurements—even if Fowler
remains blissfully unaware of
Ozuna’s interest. Fowler sounded
perplexed when asked about the
possibility of Ozuna commandeering
one of his bats.
“I haven’t heard that,” Fowler
said. “That’s fine. He can have it.”
Ozuna doesn’t necessarily want
Fowler or anybody else on the
Cardinals to know his plans. He
prefers the sneak attack, moving
in on his mark in times of struggle. From a practical standpoint,
Ozuna said he sometimes will
switch things up during a slump,
partially out of superstition, but
partially for a legitimate baseball
reason. In bad stretches, he will
JOHN BAZEMORE/ASSOCIATED PRESS
BY JARED DIAMOND
St. Louis Cardinals left fielder Marcell Ozuna typically wields a 34-inch, 32-ounce maple bat made by Chandler.
seek a lighter bat, finding that it
helps him regain his mechanics.
“When I don’t feel comfortable,
I’ll get the feeling with another
bat,” Ozuna said. “So I say, ‘Let me
get one of those bats,’ and I use it.”
Other times, Ozuna looks for a
different bat purely out of necessity.
In a game against the Milwaukee Brewers last July, the umpires
determined that the pine tar on
Ozuna’s bat extended beyond the
allowable 18 inches. Forced to
switch bats, he grabbed one of
Stanton’s from the Marlins dugout
and promptly deposited a pitch
deep into the left-field seats.
(The pine tar incident didn’t
seem to faze him: On a recent
morning in the Cardinals clubhouse at Roger Dean Stadium,
Ozuna spent quite a while meticulously applying the sticky substance to his bats.)
“I think he’s just trying to test
it out and see whose bat he wants
to use when he gets his taken
away,” Marlins catcher J.T. Realmuto said with a laugh.
Ozuna made sure to ask for permission for taking a bat in one instance: when he started using the
bats belonging to Suzuki, a man
who treats his bats the way most
people care for a baby. Suzuki famously stacks his equipment in a
moisture-free case that he keeps
by his locker at home and carries
with him on the road.
That meticulousness didn’t stop
Ozuna from asking Suzuki if he
could try one out, first in batting
practice, then in a game. Initially
puzzled by the request, Suzuki ultimately consented, but on one
nonnegotiable condition.
“He said, ‘Don’t throw it,’”
Ozuna said. “‘If you’re going to
strike out or something like that,
don’t throw it. If you walk, just
put the bat down.’”
Ozuna heeded Suzuki’s warning
and enjoyed immediate success. The
first time he used it, Ozuna went 3-
for-5 with a home run. Flush with
confidence, he decided he wanted
to use it again the next day.
This sparked outcry in the Marlins’ locker room. His teammates
couldn’t believe he would risk
breaking the great Suzuki’s bat after
he homered with it the night before.
He had in his hands a keepsake
from a future Hall-of-Famer, one of
the best hitters in history, that he
could show his grandchildren.
“I got pissed at him,” said Yelich,
now with the Brewers. “I was like,
‘Dude, stop. You hit a homer with
Ichiro’s bat. Make him sign the bat
and put it away. It’s Ichiro, man.’”
Ozuna brought Suzuki’s bat with
him to the plate for his first at-bat
the next day and homered with it
for the second time. He bowed to
Suzuki when he returned to the
bench and retired the bat forever,
wanting it to go out on a high
note. Afterward, Ozuna asked Suzuki to autograph the bat. He currently has it at his house.
.
Friday, March 16, 2018 | A13
THE WALL STREET JOURNAL.
OPINION
The Art of the Steel Tariffs
By Melissa Francis
Trump’s political style
confuses friends and
foes, but he told the
world about it in 1987.
Most likely this cacophony
is exactly what Mr. Trump intended. A recurring trick of
his presidency, and before it
his campaign, has been to stir
controversy with unexpected
announcements. He always begins by taking a loud and outlandish position far outside
the current discussion. That
resets the negotiation. He
shocks the parties at both
ends of the table, then
watches as the back-and-forth
begins. It’s a wonder that so
many are still fooled by the
same old approach.
Look at Mr. Trump’s record. The pattern began near
the start of his candidacy,
when he first pledged to
“build a great, great wall on
our southern border”—and
to make Mexico pay for it.
T.J. KIRKPATRICK/BLOOMBERG NEWS
P
resident Trump is beginning to unveil the details of his tariffs on
steel and aluminum, but
they’re hard to hear above the
noise. Democrats loudly rejoice in Mr. Trump’s folly,
hoping the tariffs will erase
the benefits of tax reform. Republicans scream the lessons
of Smoot-Hawley to anyone
who will listen. Lobbyists
march steelworkers to the
cameras to explain how they
would benefit, while Americans in industries that consume steel protest that higher
prices might kill their jobs.
Even the beloved (and aluminum-wrapped) Hershey’s Kiss
is the subject of ear-splitting
debate.
nearly 5% in 2017. Whereas in
2014 only three countries
other than the U.S. met the
goal of spending 2% of their
gross domestic product on defense, the number will jump to
eight this year.
The negotiating style Mr.
Trump developed in business
may not translate perfectly to
politics. Will the ruse of steel
and aluminum tariffs give the
president enough leverage to
renegotiate dramatically a decades-old deal like the North
American Free Trade Agreement? We’ll see. Was it the
potential cost to China’s industry that spurred North Korean dictator Kim Jong Un,
whose regime is propped up
by Chinese aid, to reach out to
President Trump on the same
day the tariff details were announced? We can’t know for
sure.
What is certain is Mr.
Trump’s style of leadership is
agonizing for his staff and Republican officeholders, who
must time and again defend
the indefensible or attempt to
alter the president’s positions.
My advice to them is to close
their ears and open their eyes.
Instead of joining the chorus
of critics when Mr. Trump bellows an outrageous position,
they should recognize his final
goal and realize that he’s just
opening up the bidding.
As Mr. Trump suggests in
his book, the only thing that
matters at the end is whether
he can get results: “You can
create excitement, you can do
wonderful promotion and get
all kinds of press, and you can
throw in a little hyperbole. But
if you don’t deliver the goods,
people will catch on.”
President Trump with steel and aluminum executives, March 1.
The strategy was torn right
out of “The Art of the Deal,”
the 1987 book in which Mr.
Trump advises: “If you’re going
to be thinking anyway, you
might as well think big.”
Mr. Trump describes the
next step of his recurring
gambit in the same book: “I
also protect myself by being
flexible. I never get too attached to one deal or one approach.” Sure enough, by the
beginning of this year, his
border wall had developed
into a more amorphous “border wall system.”
“We don’t need a 2,000mile wall,” he said in January
at a bipartisan meeting with
lawmakers. “We don’t need a
wall where you have rivers
and mountains and everything
else protecting it.” Shortly
thereafter he asked Congress
to fund the project, despite
his earlier promise that Mexico would pay for it.
As part of the same proposal, the president offered a
pathway to citizenship for 1.8
million so-called Dreamers,
roughly three times as many
as President Obama’s policy
has shielded from deportation.
The offer surprised Republicans and Democrats alike. Although the deal fell through in
the end, Mr. Trump presented
each side with something it
wanted and something it
hated.
The “travel ban” was another instance of Mr. Trump’s
shock-and-awe gambit. As a
candidate in 2015, he called
for “a total and complete
shutdown of Muslims entering the United States until
our country’s representatives
can figure out what is going
on” with Islamic terrorism.
As president, however, Mr.
Trump addressed the issue
with a series of executive orders temporarily barring entry to travelers from certain
majority-Muslim
nations,
most of which had already
been flagged by the Obama
administration as likely origins for terrorists. This was
a far cry from his original
position.
During the campaign, Mr.
Trump said that the North Atlantic Treaty Organization
“may be obsolete.” His complaint was that NATO members
weren’t meeting their spending
commitments. The world decried Mr. Trump’s naiveté, his
misunderstanding of history
Ms. Francis co-hosts “After
and international relations. But the Bell” on Fox Business.
NATO’s leader said this week
that the alliance’s European
Kimberley A. Strassel is
members plus Canada inaway.
creased their military spending
Learning to Pray When Words Fail
HOUSES OF Julie Shul- growing because medical ad- Ms. Shulman began meeting scholars with appropriate lecWORSHIP
man decided vancements enable people with rabbis in Israel and the ture techniques.
By Deborah
Gastfreund
Schuss
to study linguistics because
she
wanted
to
help people
with speaking disorders. She
never imagined how personal
this mission would become. After graduating from Israel’s
Bar-Ilan University in 2000,
the Maine native headed to
Massachusetts for a master’s
degree and job in speech therapy. Her husband, Ayal Shulman, worked as a business-development manager for an
Israeli startup in Brookline.
They returned to Israel in
2009—with promising careers
and three young children.
Two weeks after their return, Mr. Shulman, then 37,
suffered a massive brain hemorrhage. Despite the initially
grim prognosis, his cognitive
function is intact. But his
speech is limited to sentences
of three or four words, and his
reading and writing abilities
are limited.
Along with Mr. Shulman, at
least two million people in
the U.S. live with aphasia, according to the National Aphasia Association. Some 180,000
acquire the disorder every
year. The condition, which
produces a disconnect between what the brain wants
to convey and what is actually
expressed, often strikes survivors of strokes or head
trauma without affecting their
intelligence. The incidence is
with such maladies to survive
at higher rates. Yet cures for
the ensuing handicaps remain
elusive.
Ms. Shulman—an Orthodox
Jew deeply immersed in her
faith—wanted to enhance her
husband’s practice of Judaism.
Today she helps reintegrate
others suffering from aphasia
into communal religious participation. As she agitates for
public educational and inclusion efforts of the sort that
better-known disorders receive, she has come to view
the religious community as a
natural ally.
“People don’t understand
how the loss of speech is so
debilitating, not only for your
family life and your friendships, but also in the way that
you practice religion,” Ms.
Shulman, 40, told me. “It’s
very frustrating for those who
have practiced Judaism—or
any religion for that matter—
for most of their adult lives in
a certain way, and now this
ability has been taken from
them.”
That fuels a sense of urgency for support on a grand
scale, added Ms. Shulman.
Even dedicated friends don’t
grasp the complex layers of
daily challenges that aphasia
poses. Many families feel
abandoned as their networks
dwindle and they must adapt
to this new normal.
After scouring sacred texts
regarding speech impairment,
U.S. to educate a broad swath
of communities about aphasia
and to suggest strategies for
supporting speech-impaired
worshipers. Aiming to lower
hurdles around synagogue rituals, for instance, she discussed with them the use of
verbal and visual cues to help
those with articulation difficulties fulfill the honor of being called to the Torah for a
blessing.
Disorders like aphasia
pose a challenge
for adherents of
speech-based faiths.
Her work toward spiritual
integration of people with
aphasia applies to adherents
of other speech-based faiths
too. She hopes to collaborate
with Christian and Islamic religious leaders to spur aphasia
awareness in their own communities. She’s connected
with a former pastor in New
York whose wife has the disorder and is enthusiastic
about enlisting clergy as
change agents.
“The underlying principle
of our practices, and involvement in our religion, is the use
of speech,” she said. “Whatever blessing we choose, we
express it verbally. By helping
someone with aphasia partake
in their religious practice, it
gives them a sense of selfworth and empowerment.”
She would know.
Mr. Shulman, now 45,
works classifying diamonds
for Leo Schachter & Co. in Ramat Gan, Israel. His faith unshaken, he walks to synagogue
each morning with an electronic leg brace, puts on tefillin with his one functional
arm, and mouths the prayers
as best he can. I asked him
about the significance of his
religious participation since
developing aphasia. “So important, community,” Mr.
Shulman responded. “Friends,
so important.”
Last summer Ms. Shulman
organized a month-long Jewish learning program in
Ra’anana, Israel, for people
with aphasia and their families. It was formulated to address their language-processing challenges while
recognizing their thirst for
knowledge at a high intellectual level. The rabbis giving
the classes on the weekly Torah portions spoke slowly and
in short sentences, and
paused more frequently, so
words and concepts could be
better absorbed. Ms. Shulman
hopes this pilot with 15 participants will gain traction
elsewhere around the world.
Ms. Schuss is a writer in
She hopes to continue guiding Boston.
Aisha Meets St. Patrick—Only in America
By Kevin Donovan
T
wo years ago my wife
and I moved to Connecticut, where she had accepted a teaching job. I found
myself among the millions of
people who travel to work in
Manhattan every day. While it
took some getting used to, the
commute gave me the opportunity to meet recent immigrants
who have flocked to the New
York area in recent years.
One morning at the bus
stop, I struck up a conversation with a man I’ll call by his
first initial, M. He lived in the
apartment building next to
ours, and we both had begun
working in Midtown at about
the same time.
M. was an Indian Muslim
from Gujarat. He had lived in
London, Dubai, Boston and
South Africa. He and his wife
settled in Stamford because
its schools had a good program for handicapped children
and their daughter suffered
from hearing loss. A business
Muslim parents take
their daughter to a
Catholic parade.
analyst, M. had a wealth of
opinions on banking, real estate, Indian politics and just
about everything else.
He also had a wealth of
friends. Nearly every day he
bumped into someone on the
train or bus, usually professionals like himself from the
subcontinent. One Friday
morning in March 2017 he
caught sight of a friend on
the train and motioned for
me to follow. I took a seat
opposite him, next to a
woman of South Asian appearance traveling with a
young girl.
While the two men chatted,
I introduced myself to the
woman, the wife of M.’s
friend. The girl beside her was
their daughter, Aisha. Since it
was a school day and since it
is unusual to see a family on a
commuter train, I asked where
they were going so early in
the morning.
“To see the St. Patrick’s
Day Parade,” Aisha’s mother
said with a smile.
I had read enough about Islam to know that Aisha was
the name of a wife of the
Prophet Muhammad. Here
were two proud Muslim parents taking their daughter out
of school for a day to go to a
parade in honor of a Catholic
saint and acting as if it was
the most ordinary thing in the
world.
It can be easy to forget that
most of those who are new to
our shores are eager to become part of America. The
same was true of immigrants
in earlier times—including
those who started the celebration that takes place each
March 17. How nice it is, then,
that Aisha and St. Patrick have
become acquainted.
Mr. Donovan is an IT professional living in Greater
Boston.
BOOKSHELF | By Howard Schneider
Going
To Extremes
To the Edges of the Earth
By Edward J. Larson
(Morrow, 329 pages, $29.99)
I
n 1909, Robert E. Peary, Ernest H. Shackleton and
Prince Luigi Amedeo of Savoy, duke of the Abruzzi,
challenged nature at its worst, attempting to be the
first to reach, respectively, the North Pole, the South Pole
and the summit of K2, the world’s second highest mountain—and perhaps its most perilous. So great was the
mystique of K2 and other redoubtable peaks near it in the
Karakoram and Himalaya ranges that they were widely
considered the “third pole” or the “pole of altitude.”
Edward J. Larson’s “To the Edges of the Earth” chronicles
the three men’s expeditions in an engaging tale of derringdo and survival virtuosity.
These plucky explorers were “celebrities of the day,” Mr.
Larson writes, “chasing immortality.” Their fame was hardwon in regions that contained innumerable hazards: relentless blizzards, months-long spans of no sunlight, ferocious
gales, shifting ice packs. Moreover, it might be hard for people today to understand just how primitive—compared with
our GPS era—the exhibitions’ equipment and scientific instruments were. Shackleton took a car on his trek to the
South Pole, a bad idea.
Peary (1856-1920) was an American naval officer
enthralled by the prospect of reaching the North Pole. His
1909 mission was the culmination of a series of “seven
prior expeditions . . . with
the last three aimed squarely
at the North Pole.” His people skills weren’t the most
refined (he had “a stern Stoic
soul,” Mr. Larson writes).
Even his longtime colleague,
the African-American Matthew A. Henson, who accompanied Peary on many of his
expeditions—he spoke Inuit,
unlike Peary, and was a superb
dogsled driver—seemed ambivalent about him years after the 1909
mission. But Peary was a workaholic (as were
Shackleton and the duke), and for the 1909 trek he studied
Inuit culture for survival guidance.
Peary probably got closer to the North Pole than anyone
before him—certainly an impressive feat. But he claimed for
the rest of his life that he had actually reached the pole, and
Mr. Larson strongly implies that Peary lied about this. One
suggestive piece of indirect evidence: In the final phase of
his foray to the pole, he left behind anyone else who could
read a sextant—the device that was the only way to confirm
his alleged victory. Peary became incensed when he learned
that, while he was incommunicado during his mission, a
despised rival, the American physician Frederick A. Cook,
was spreading word through Europe and America that Cook
himself had reached the pole before Peary. Thus began a
century-plus controversy over who was the champion. Mr.
Larson’s research indicates that neither was correct. Despite
Peary’s accomplishments, he ultimately comes across as a
humbug.
Shackleton (1874-1922), a British Merchant Navy officer
who had made one previous trip to Antarctica before his
1909 mission, was a natural leader of men who charmed
associates, expedition donors and the public on three
continents. But charisma goes only so far: Although his
party set a new “farthest south” record, and three members
apparently did reach the magnetic South Pole, no members
of Shackleton’s 1909 expedition succeeded in reaching the
geographic South Pole (the team’s ultimate prize). Ever the
gentleman, Shackleton never claimed that he did; but the
British and other Europeans loved his endeavors anyway.
In 1909, a trio of explorers sought to reach,
respectively, the North Pole, the South Pole and
the top of the world’s second-tallest mountain.
Prince Amedeo (1873-1933), “darkly handsome and devilishly suave,” was a naval officer and a member of Italy’s
royal family who had been in the news as much for his
rumored engagement to the daughter of a West Virginia
coal baron as for his Arctic adventures. He targeted K2,
located between China and what is now Pakistan, in part
because Mount Everest was inaccessible to Westerners. But
the duke, a tough, talented mountain climber as well as a
polar explorer, understood that the harrowing K2 was
worthy of his attention. He later recalled gazing up from
base camp at the peak’s “steep flanks swept clean by avalanches and its summit cone covered with ice.” The 28,250foot mountain and persistent bad weather defeated his attempt to reach the summit, however. He then tried to scale
a neighboring mountain, Chogolisa, as a kind of consolatory
effort to “set a world altitude record.” He didn’t reach the
summit there either, but he did set his record: 24,600 feet.
Mr. Larson, an academic and author of many other books
(including a previous work on exploring Antarctica), is a
talented storyteller with a dry sense of humor, and the
nicest compliment that I can pay him is that he does full
justice to his three protagonists’ remarkable bravery,
resourcefulness, accomplishments—and flaws. His suspenseful and sometimes moving narratives prompt the reader to
ponder two fascinating issues. The first is how important
character (intelligence, valor, leadership prowess) was to
these men’s survival, as opposed to just plain luck (the
weather, guessing the right route, finding stored food
caches). The second issue concerns Peary’s and Shackleton’s
motivations. They publicly maintained that they initiated
their quests to enhance the grandeur of their respective
nations. Mr. Larson’s scholarship indicates that both men
also lusted after fame and fortune. Cynics could conclude
that Peary and Shackleton were hypocrites. And yet, my
own cynicism notwithstanding, I can’t help thinking that
these two adventurers (even mendacious Peary) wouldn’t,
couldn’t, have endured the hellish ordeals they did if they
hadn’t possessed a modicum of idealistic patriotism.
Mr. Schneider reviews books for newspapers and
magazines.
Coming in BOOKS this weekend
The era of Dwight D. Eisenhower • The collected stories
of Bruno Schulz • Stalin’s Gulags in Putin’s Russia • Who
was Ibn Khaldun? • Finding meaning in quantum physics
• Bob Fosse and the American musical • & much more
.
THE WALL STREET JOURNAL.
A14 | Friday, March 16, 2018
OPINION
R
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The GOP’s Internet Tax
Unilateral Tariffs Hurt Friends and Enemies
epublicans have spent the last year cutNonetheless, Quill has become a bogeyman
ting taxes and regulations, which hasn’t of politicians on the left and right. In his Direct
been easy. But now some Members of Marketing Association v. Brohl (2015) concurCongress want to blunt their
ring opinion, Justice Anthony
handiwork by passing an on- Some Republicans want Kennedy echoed their laments
line sales tax. Yes, they actuthat Quill was “now inflicting
to stuff a state sales
ally believe this would be good
extreme harm and unfairness
web tax in the omnibus. on the States.” His opinion
policy and politics.
A large faction of House
emboldened states to pass a
Republicans are pressing GOP
patchwork of “Kill Quill” bills
leaders to attach legislation to the omnibus that are essentially gutting it even without a
spending bill that would let states collect sales change in federal law.
tax from remote online retailers. South Dakota
Twenty or so states have adopted “clickRep. Kristi Noem’s legislation, which has 50 co- through” taxes to hit remote retailers that have
sponsors, would let some 12,000 jurisdictions contracts with local businesses. In 2016 South
conscript out-of-state retailers into collecting Dakota invited the High Court to revisit Quill by
sales and use taxes from their customers. A bi- extending its sales tax to out-of-state sellers.
partisan companion bill in the Senate has 27 Other states have followed. The Court will hear
co-sponsors.
that case, Wayfair v. South Dakota, next month,
The Supreme Court’s 1992 Quill decision for- and most expect Justice Kennedy to join the libbids state and local governments from requir- eral majority to overturn Quill.
ing businesses without a “physical nexus”—that
But some Republicans warn that the Court
is, property or employees—to collect sales tax. could divine a new standard from whole cloth
States complain that this restriction puts brick- that could create confusion. Worse, the Court
and-mortar stores at a competitive disadvan- could enable broader taxation and regulation
tage and reduces government revenues. All po- of out-of-state businesses. This is what many
litical protectionism is local.
states want to happen. The Justice Department
But online purchases make up less than 10% has argued for a “virtual” presence standard
of all retail sales, and only a sliver is untaxed. that would make a hash out of the Commerce
Seventeen of the 18 largest retailers on the web Clause, which gives Congress the authority to
by 2016 had already begun collecting sales taxes regulate interstate commerce.
on all of their customers’ purchases. The excepErgo, many Republicans say Congress must
tion was home-goods retailer Wayfair.
intervene. Yet the legislation that they want to
Big retailers like Amazon and Walmart have add to the omnibus spending bill next week
the resources to comply with disparate tax rules won’t necessarily moot the case or rein in eracross thousands of jurisdictions. Small busi- rant Justices.
nesses don’t. In New York City, all clothing—save
If the status quo is doomed, then a better aljewelry, costumes and some athletic equipment— ternative is House Judiciary Chairman Bob
that costs less than $110 is exempt from sales tax. Goodlatte’s compromise with California DemoChicago taxes bottled water, soda, candy and gro- crat Anna Eshoo, which would establish a mechceries all at different rates.
anism for states to collect taxes from out-ofContrary to political lore, sales tax revenues state
retailers
through
a
national
have been increasing steadily in states with clearinghouse. His bill would simplify complihealthy economies. Over the past five years, ance for small retailers and prevent states from
Florida’s sales tax revenues have grown 27%. harassing out-of-state businesses—thus preSouth Dakota’s are up by nearly 30% since 2013. serving the constitutional principle of no reguThis is noteworthy since politicians from states lation without representation.
without income taxes complain that Quill could
The real reason some Republicans in Conimpel them to pass one to raise revenue.
gress are now rushing to pass their kill Quill bill
As for brick-and-mortar stores, most nowa- is that they want to get credit for axing the
days sell over the web too. Those that are strug- Court’s 1992 decision with retailers at home.
gling—e.g., Sears and Toys “R” Us—are overlev- But stuffing such an important policy change
eraged and didn’t adapt fast enough to changes inside a huge spending bill with little debate
in consumer behavior or tastes. People who would be a political scam. Raising taxes on
shop online generally do so for the convenience small business and consumers won’t be a good
rather than incremental tax savings, which can look for Republicans in November, nor an inbe negated by shipping costs.
ducement for investment and growth.
A
Andrew McCabe and Consequences
ttorney General Jeff Sessions faces a
decision that will be controversial no
matter what he does: Fire former Deputy FBI Director Andrew McCabe, or overrule
the recommendation of the FBI’s own internal
investigators.
The recommendation to fire Mr. McCabe
isn’t coming from Donald Trump or Russian
bots. It comes from the FBI’s Office of Professional Responsibility. News reports say it is
based on a finding from the Justice Department’s Inspector General that Mr. McCabe authorized the disclosure of sensitive information
to a Wall Street Journal reporter about the investigation into the Clinton Foundation—and
then lied about it to IG investigators.
The IG report remains secret, but it’s hard
to believe the FBI would recommend such punishment if it did not believe Mr. McCabe’s actions were a serious breach of duty. The bureau’s recommendation is in marked contrast
to the endorsement from his old boss, former
V
FBI Director James Comey, who tweeted in January that Mr. McCabe “stood tall” as “small
people were trying to tear down an institution
we all depend on.” Did St. Jim know about his
comrade’s alleged deception?
Mr. McCabe is connected to controversial
FBI investigations into both presidential candidates in 2016, and in January he said he
would formally retire on March 18 when he
would have enough seniority to qualify for his
pension. Firing him early could cost him that
lifetime payout.
The American people still don’t know what
went on at the FBI during those 2016 investigations. Several FBI and Justice officials will
soon testify to the House Intelligence Committee. Perhaps Mr. McCabe’s firing would persuade them that there are consequences for
untruthfulness. Time and again we have been
assured of the FBI’s high standards. Imagine
how Mr. McCabe would treat an American citizen who lied to the FBI.
Vladimir Taunts the West
ladimir Putin has invaded Ukraine, Moving the World Cup out of Moscow would be
propped up Syria’s Assad regime, med- more like it.
dled in the 2016 U.S. presidential elecMrs. May also rallied the U.S., France and Gertions, and this month somemany to condemn the attack in
Spy expulsions and
one in his government
a joint statement as “the first
approved a chemical-weapons
offensive use of a nerve agent
small-scale
sanctions
attack on British soil. The
in Europe since the Second
won’t deter Moscow.
Western response so far is the
World War,” which “threatens
equivalent of a foot stomp and
the security of us all.” The four
public whining.
leaders demanded that MosStart in Britain, where Prime Minister The- cow disclose its chemical-weapons activities to
resa May on Wednesday outlined her response a Hague-based organization and “live up to its
to evidence that Russia-backed agents used the responsibilities as a member of the U.N. Security
Soviet-era Novichok nerve agent to try to assas- Council to uphold international peace and secusinate former spy Sergei Skripal and his daugh- rity.” The Hague boys shouldn’t stay up waiting
ter Yulia in Salisbury this month. They and a lo- for an invitation.
cal policeman exposed to the agent are
More substantively, Treasury Secretary Steseriously ill, and hundreds of local residents ven Mnuchin on Thursday announced new U.S.
were put at risk.
sanctions against five Russian entities and 19 inThe attack evoked memories of the 2006 dividuals for “attempted interference in U.S.
murder with polonium of Russian dissident Alex- elections, destructive cyber-attacks, and intruander Litvinenko in London, which was linked sions targeting critical infrastructure.” This is
to Mr. Putin. Yet the Salisbury attack was a more welcome after a long delay and is the Trump Adserious provocation than the Litvinenko hit. ministration’s first sanctions response to the
Never before had Moscow attacked a spy who 2016 election interference, but it’s still not adewas swapped for Russian spies, as Mr. Skripal quate as a response to Mr. Putin’s assaults.
was, or targeted a spy’s family. If Mr. Skripal is
Mrs. May threatened more punitive meafair game, so is any critic of Russia anywhere— sures, and one option that might get Mr. Putin’s
which is no doubt the message the Kremlin in- attention would be to seize the financial assets
tended to send.
and property of Russians connected to Mr. Putin.
Yet Russia “treated the use of a military grade The Russian strongman’s power depends on his
nerve agent in Europe with sarcasm, contempt ability to enrich his cronies, and they all have
and defiance,” Mrs. May said Wednesday, as she money overseas where Mr. Putin or a successor
outlined what she called her “full and robust re- can’t easily snatch it if the whim strikes.
sponse.” London gave 23 Russian spies a week
Mr. Putin keeps taunting the West because he
to leave the country, suspended “all high level has learned that its leaders lack the political
bilateral contacts” and confirmed that no mem- nerve to strike back in a way that matters. Until
ber of the British Royal Family would attend the West threatens his finances, Mr. Putin won’t
the soccer World Cup this summer in Russia. be deterred from future aggression.
Regarding your editorial “Trump’s
Hoover Temptation” (March 9): We
are a 90-year-old American manufacturer of fans. We start with Americanmade steel sheet and coil and aluminum sheet, coil and ingot and make a
world-class product. We compete
around the world. Unfortunately, the
president has picked the wrong target
for his tariffs. Steel and aluminum
prices are already at all-time highs.
Instead of increasing demand for domestic steel and aluminum, the tariffs
will ultimately decrease demand. This
is a simple economic law: Prices go up
and demand goes down. The real target, if the president wants to help the
domestic steel and aluminum companies, should be to consider putting
tariffs on foreign fabricated and cast
parts rather than on raw materials.
What President Trump has done is
make American manufacturers that
use American-made steel and aluminum sheet or ingot noncompetitive in
the world marketplace. We have eight
domestic competitors that import
fabricated parts and assemble them
here. American steel and aluminum
companies won’t benefit from the tariffs and will only put their customers
out of business. This happened in
2004 when steel prices doubled, and
it will happen again. Tariffs on foreign parts would give assembly shops
the incentive to become real manufacturers and increase employment in
manufacturing. American steel and
aluminum companies would see an increase in volume, not a potential decrease due to higher prices.
HARRY GRAVES
President
American Coolair Corporation
Jacksonville, Fla.
competitive again. Your editorial
sounds like the sky is falling and the
trade war has begun. It’s time for you
to relax a bit and allow President
Trump’s shot across the bow to sink
in with our trading partners as they
realize there is a new sheriff in town
who is not a pushover. Maybe if some
of our previous presidents stood up
for our core industries, they would
not have been decimated over the
past 30-plus years.
A. GUY HUBSCHMAN
Andover, Mass.
Your editorial “How a Trade War
Escalates” (March 8) describes how
the EU-proposed tariffs on certain
U.S. items are “politically shrewd in
targeting exports from states represented by Republicans on Capitol Hill.
The point is to punish voters in
states Mr. Trump carried in 2016 and
Republicans running for re-election
this year.”
That certainly sounds like a foreign-government entity interfering in
our elections. Should this interference
really be cheered on at the same time
millions of dollars are being spent by
a special counsel investigating foreign-government interference in our
elections? Is interference OK as long
if it is aimed at a target which is not
a media favorite?
LARRY STEWART
Ponte Vedra Beach, Fla.
Regarding your editorial “Professor
Ross’s Soup-Can Economics” (March
6): Perhaps the Trump administration
might review the effects of the wellchronicled tariffs on sugar. The cost
of the raw material increased, causing
candy manufacturers to move across
the lakes to Canada. The net result
All that President Trump wants to
was six jobs lost for every one gained,
do is reset our trading priorities, a
along with capital moved abroad.
brief pause you might say, to let these
MARK MUNDAY
Knoxville, Tenn.
industries retool so that they can be
Take Another Look at Paid-Leave Statistics
Kristin Rowe-Finkbeiner’s March 6
letter cites misleading paid-leave statistics. It states that only 15% of all
working people have access to paid
leave, likely relying on an often-cited
Bureau of Labor Statistics (BLS) number. Actually, many more workers
take paid leave, but the BLS doesn’t
count it due to its peculiar survey
methods which require paid leave to
exist separately from “sick leave, vacation, personal leave or short-term
disability leave that is available to
the employee.”
Parents with conventional benefit
programs often save and pool paid
personal leave, vacation, sick leave
and short-term disability in the event
of a birth or adoption. Unconventional benefit packages, like paid time
off accounts or unlimited paid-leave
programs also don’t count under the
BLS survey. Parents use these leave
variations as paid leave in case of a
birth or adoption. They do so because
they are paid and leave.
That is why BLS numbers don’t
match with virtually any other national data set or surveys of parents
on the topic including the Census Bureau’s Survey of Income and Program
Participation, its Current Population
Survey and the Family and Medical
Leave Act worksite and employee surveys. National surveys agree that between 40% and 60%-plus of workers
receive paid leave. A nationally representative study by the National Partnership for Women & Families indicated 63% of employed mothers were
provided paid maternity-leave benefits.
It’s important we use clear statistics when discussing paid-leave proposals.
VANESSA BROWN CALDER
Cato Institute
Washington
Avoid Doomsday: Reduce
Carbon, Use Renewables
As Oren Cass points out in
“Doomsday Climate Scenarios Are A
Joke” (op-ed, March 12), society is
constantly adapting to all sorts of
changes. That is definitely true, and
the best way to adapt to climate
Regarding “Mind & Matter: Why
change and avoid some of those
Don’t More Women Choose STEM Ca- “doomsday” scenarios is for society
reers?” (Review, March 3), at Carneto adapt to a carbon-free future
gie Mellon University, we believe that fueled by renewable energy. To do
academia and industry can effectively otherwise in the face of projected cliand rapidly increase the participation mate changes would be, as Mr. Cass
and success of women in computer
puts it, “silly.”
science by paying attention to the miCHRISTINE VIDOVICH
San Pedro, Calif.
croculture and implementing common-sense changes. Our guiding
premise: The minority in any community doesn’t have access to, is indeed
often excluded from, the academic
Mary Anastasia O’Grady belittles
and professional opportunities and
Donald Trump’s national-security aradvantages critical for success that
gument for imposing tariffs on steel
are available (most often implicitly)
and aluminum from Canada (“Is Canfor the majority in the community.
ada a National Security Risk?,”
These implicit advantages include
Americas, March 5.) She has apparrole models, mentors, community,
ently forgotten the American-Canaconnections, networking, experiential
dian war in the 1999 film “South
learning, leadership opportunities.
Park: Bigger, Longer & Uncut.” The
Thus, it makes sense to level the propresident has not.
fessional playing field by making
S. PAUL POSNER
these advantages explicit and availNew York
able for everyone. It’s not rocket science, just common sense.
CMU’s Women@SCS program to
level the professional playing field effectively countered the macroculture,
resulting in women entering the computer-science major at CMU in inTHE WALL STREET JOURNAL
creasing numbers, now inching up to
almost 50%—and with retention of
women now at a slightly higher level
than men. We find that in a more balanced environment (in terms of both
numbers and professional opportunities afforded) there is virtually no
gender divide.
PROF. LENORE BLUM
Carnegie Mellon University
Pittsburgh
There’s No Need for Women
To Lag in the STEM World
Recall War With Canada?
Pepper ...
And Salt
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.
“When my Mom played soccer,
only the winner got a trophy.”
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | A15
OPINION
How to Complete the Escape From ObamaCare
T
he tax-reform provision
repealing the penalty on
those who refuse to participate in ObamaCare has
freed millions of Americans to escape a system that exploits
them. But while Americans can escape ObamaCare, they still can’t buy
insurance in the individual market
independent of ObamaCare because
private insurers are prohibited from
selling it. If this prohibition can be
removed through the granting of
state waivers by the Department of
Health and Human Services, or by
the passage of a new federal statute,
ObamaCare will collapse into a highrisk insurance pool for the seriously
ill rather than become a stepping
stone to socialized medicine.
Congress eliminated the
individual mandate.
There’s a way around the
other onerous regulations.
The politics of the ObamaCare debate changed dramatically when the
Congressional Budget Office determined that repealing the coverage
mandate would save an astonishing
$338 billion over 10 years. The saving
would come from undisbursed subsidies, as lifting the tax penalty would
induce an estimated 4.6 million people to flee from the exchanges. The
number of Americans enrolled in
ObamaCare plans is projected to
plummet to 7.4 million by 2021, a
mere 2.2% of the population.
The repeal of the tax penalty will
progressively worsen ObamaCare’s
risk pool as healthy enrollees who
currently pay more into the
system than the expected
value of their coverage exit
the exchanges. Premiums
will rise at an accelerating
rate for those who stay in
the exchanges, forcing
Democrats to find new
funding or watch the program implode.
There are two ways to
restore Americans’ freedom
to buy health insurance independent of ObamaCare.
First, HHS should grant
waivers to states that want
to let private insurers offer
state-approved plans exempt from ObamaCare’s
coverage mandates and
rigged risk pool, enabling
these states to expand
health-care freedom inside
their own borders. Second,
Congress should amend
ObamaCare to permit insurers to sell individual
policies outside of the exchanges that are totally independent of ObamaCare
regulations, which would
dramatically increase the
options available to every
American.
Idaho is the first state to allow
plans that stray from ObamaCare’s
coverage mandates, and Blue Cross
of Idaho has proposed five “Freedom
Blue” plans outside the state exchange. The plans provide coverage
similar to what is available on the
exchange, but many are listed at
about one-third the price because
premiums are set to match individual health-risk profiles rather than
subsidize the riskiest enrollees. The
new plans also boost affordability by
offering higher deductibles.
Idaho’s best chance at obtaining
plan to grant health-care
freedom to its citizens
posed a mortal threat to
ObamaCare. Sens. Patty
Murray and Ron Wyden
were joined by Reps. Frank
Pallone and Richard Neal in
sending an intimidating
letter to the director of
Idaho’s Department of Insurance, threatening massive fines and demanding
emails and phone records.
Since Idaho has shown no
sign of backing down, this
battle is certain to escalate.
Democrats clearly understand that if Idaho is able
to market its “Freedom”
insurance, as many as 30
Republican-led states will
quickly follow its lead.
Health-care freedom in
Idaho could lead to the de
facto end of ObamaCare
throughout America.
The Trump administration and Congress are also
working to expand healthcare freedom nationwide.
When the current administration reversed President
Obama’s policy of making
cost-sharing payments to
keep insurance companies in the exchanges, insurers responded by raising the price of their federally subsidized benchmark insurance options.
This premium increase on the benchmark policies triggered an automatic
increase in the subsidies, all funded by
federal taxpayers. State insurance regulators conveniently looked the other
way in 2017, but ObamaCare specifically granted the federal government
rate-review powers to prevent insurance companies from gaming the system. The benchmark ruse is unlikely
to pass HHS scrutiny in 2018.
BARBARA KELLEY
By Phil Gramm
the feds’ blessing for its state-approved plans is to make the plans renewable every 12 months. This
would allow them to qualify for the
limited-duration exemption recently
expanded by HHS. In a March 8 letter the administrator of the Centers
for Medicare and Medicaid Services
told Idaho Gov. Butch Otter: “These
state based plans could be legally offered under the PHS [Public Health
Service] Act exception for shortterm, limited-duration plans.”
Democratic leaders in Congress
were quick to recognize that Idaho’s
Before the repeal of the tax penalty, Democrats couldn’t bear the
political cost of being seen as dismantling ObamaCare, but they will
be forced to act as the program
contracts. As healthier families flee
the exchanges and premiums spiral,
Democrats will be desperate to
boost the subsidies. Politically, it
will be very difficult for Democrats
to deny people who have voluntarily left the exchanges the freedom to buy their own health insurance independent of ObamaCare
regulations. Their stubborn reluctance to permit more-flexible plans
will provide cover for Republicans
to oppose increasing subsidies to
the exchanges.
State and federal action to restore
health-care freedom would allow
new health-care initiatives, such as
the partnership among Amazon,
Berkshire Hathaway and JPMorgan
Chase, to increase innovation in the
insurance market. If more than 40%
of people enrolled in the exchanges
are expected to flee even when the
only alternative is to become uninsured, we can expect the number exiting the exchanges to grow substantially when private alternatives are
made available. This accelerated exit
will reduce ObamaCare to a high-risk
insurance pool. At that point the
country can have a real debate about
how high-risk care should be structured and funded, and whether it
should be administered by states or
the federal government. Such a program would undoubtedly enjoy
stronger bipartisan support than
America’s current restrictive healthcare law.
Mr. Gramm, a former chairman of
the Senate Banking Committee, is a
visiting scholar at the American Enterprise Institute.
Consumers Make Their Own Case Against Abolishing Cash
Reports of the
death of cash have
been greatly exaggerated—and for
exactly the reason
cash’s detractors
POLITICAL feared.
Cash has been
ECONOMICS
the subject of an
By Joseph C.
economic hate camSternberg
paign for years.
Newspaper editorials have called cash a “barbarous
relic,” harking back to John Maynard Keynes’s criticism of the gold
standard. Harvard economist Kenneth S. Rogoff wrote a book subtly
titled “The Curse of Cash” that
made the case for phasing it out—
and he won plaudits from the likes
of Ben Bernanke.
The criticism of cash comes in
two parts. The disingenuous half is
the claim that cash is an accessory
to crime. The European Central Bank
this year will stop issuing €500
notes, worth a little more than $600,
after policy makers convinced themselves that the bills, supposedly
nicknamed “bin Ladens,” are used
primarily by criminals. Similar calls
periodically arise to kill America’s
$100 bill, Britain’s £50 (about $70)
and Switzerland’s 1,000-franc (a little over $1,000).
Maybe. But a 2015 Europol report
highlighted the role of cash in
money-laundering networks, before
admitting that cash appears at only
a few stages in the process and criminals are mainly anxious about having to deal with it. So it’s a shame
European politicians have invested
so much energy opposing attempts
to monitor transactions within the
official financial system. The George
W. Bush-era surveillance of flows via
the Swift banking network generated
significant controversy on—wait for
it—privacy grounds.
In the end, this argument isn’t
about terrorism or drug mafias anyway. The lawbreaking that most perplexes European leaders is the large
gray market, composed of otherwise
law-abiding citizens who work
around suffocating taxes and labor
regulations. This shadow economy
may account for output of some €2
trillion a year, compared with the
European Union’s official gross domestic product of €15.3 trillion, and
in some Eastern European states it
may reach 40% of official GDP.
Still, here too there is less of a
connection to cash than you’d think.
Friedrich Schneider of Austria’s Johannes Kepler University estimates
that Germany and Austria are among
Europe’s most cash-intensive economies, yet they have smaller gray markets than less cash-intensive Spain or
Belgium. Sweden, Norway and Denmark use less cash than the U.S.,
France or Switzerland, but they also
have larger shadow economies.
Paper money becomes
more popular as monetary
policy becomes less so.
That’s good for democracy.
Which leads to the more serious
half of the case against cash: It
thwarts modern monetary policy.
Since 2008, policy makers and a
certain kind of pundit and professor
have fretted that cash imposes a
“zero lower bound” on interest
rates. Any attempt to implement a
negative interest rate on bank deposits—to tax account-holders as a
penalty for saving instead of spending—will fail, since people can
withdraw cash from banks and hide
it under their mattresses.
Now millions of ordinary people
around the world in recent years
have proved cash’s critics . . . right.
Use of cash has increased across developed economies, according to a
paper published this week by the
Bank for International Settlements.
Surprisingly, this is despite a parallel
increase in the use of cards and
other electronic payments that were
supposed to displace cash.
One of the big drivers is monetary
policy. The BIS economists’ tentative
calculations—although based on limited data thus far—suggest that
changes in interest rates account for
about one-third of the overall increased demand for bank notes, and
for large denominations in particular. As rates go down, the desire to
hold cash goes up.
It’s worth noting here that although the BIS researchers focused
solely on interest rates, other aspects of monetary policy, broadly
construed, may be at work too. Low
lending rates have prompted banks
to rely heavily on customer fees for
revenue, while postcrisis regulations
have made being a bank customer a
miserable experience. Your mattress
doesn’t ask you to fill out 18 forms
and pay a monthly fee before you
hide your money under it.
The critics are right that cash’s
availability as an alternative to formal bank accounts is a challenge to
policy makers. The mistake would be
to take this as confirmation that the
government ought to ban cash, or at
least discontinue large bills. That
would amount to bludgeoning voters
with yet another consequence of the
political class’s policy failures.
Economists treat the zero lower
bound as an economic dilemma, but
in truth it’s a political problem. It
represents citizens’ withdrawal of
assent for monetary policies that
show little real evidence of working,
even as they exact significant economic and social costs.
Whatever else might be the merits of an independent central bank,
the cost is attenuated electoral oversight of one of any economy’s most
important policy-making institutions. That leaves cash as voters’
primary means of asserting some
control. Having seen what an angry
electorate already has done in Britain, America, Germany and Italy,
does anyone truly think it’s a good
idea to further de-democratize
money?
I Loved College Basketball, but Now I Feel March Sadness
By Joseph Epstein
A
s this year’s NCAA basketball
tournament proceeds, I shall
not be filling in my brackets.
Nor shall I be betting a small packet
on any of the 68 teams going to the
Big Dance, as they call it. Not one has
the least interest for me. You might
catch me watching a college basketball or football game, but for years my
old passion for these sports has been
draining away. My interest now, more
aesthetic than athletic, is increasingly
in the players’ rococo hairdos, body
tattoos and exotic first names.
Despite a lifelong addiction to
sports, the corruption of college
basketball and football has become
impossible to ignore. March Madness is the way television promotes
the NCAA basketball tournament.
But the real madness may be to
think the entire enterprise in the
least legitimate.
The past had its college basketball
scandals, too. In the 1950s players at
Bradley University, the City College of
New York, Long Island University and
other schools were revealed to have
shaved points to accommodate gambling spreads. Lucrative but illicit
gym-shoe contracts for amateur players also surfaced. Players graduated
from college after spending minimal
time in classrooms. In the early 1980s,
I recall a phone call on a Chicago
sports radio show in which a young
woman thanked DePaul University
coach Ray Meyer for the excitement
that his basketball team, with its stars
Mark Aguirre and Terry Cummings,
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had provided the school. “Mark and
Terry are in my history class, but how
is it, coach,” the caller added in a
faux-naive voice, “they never seem to
show up?”
Still, today’s scandals are more
blatant, and uglier. In October, Rick
Pitino, longtime basketball coach at
the University of Louisville, was fired
after an investigation of alleged payments—$100,000 was mentioned—to
the parents of some of the team’s
young recruits. (Mr. Pitino denied
wrongdoing last year and said the allegations came as a “complete
shock.”) An earlier NCAA report had
the Louisville basketball staff “arranging striptease dances and sex
acts for prospects, student-athletes
and others.”
Sean Miller, coach at the University of Arizona, is alleged to have
discussed paying a 7-foot-1 freshman
named Deandre Ayton $100,000 to
sign with his team. (Mr. Miller this
month called the claims against him
“inaccurate and completely false.”)
Mr. Ayton is likely to be a “one and
done” player, meaning he will leave
Arizona after a single year to sign
with a professional basketball team—
another disgraceful practice fans are
asked to overlook.
Yahoo Sports reports that more
than 20 Division I basketball teams—
among them Duke, North Carolina,
Texas and Michigan State—have
been marked in a federal investigation for possibly breaking NCAA
rules, and at least 25 players are suspected of receiving “impermissible
benefits.” And the beat, as the disc
jockeys say, goes on.
Approached by a journalist who
said he had a question to ask, the
television sports producer Don
Ohlmeyer purportedly answered: “If
the question is about sports, the answer is money.” It is of course money
behind the corruption of college basketball and football, the two seriously
lucrative college sports. To start at the
top, basketball and football coaches
with major “programs” (a euphemism
for the heavily financed, endlessly recruiting athletics organizations) now
There were scandals as
long ago as the 1950s, but
lately they’ve become more
blatant, and uglier.
earn well into the millions, generally
much more than the presidents of the
schools that employ them. The highest-paid public employee in most
states is a college basketball or football coach.
In the early 1960s I was living in
Arkansas, where college football was
easily the chief entertainment. If
memory serves, the Razorbacks’ winning football coach, Frank Broyles,
earned $25,000 a year, which forced
the school, to make things appear respectable, to push up its president’s
salary to $26,000. The current pay of
the president of the University of Alabama is $755,000. Nick Saban, Alabama’s football coach, not long ago
signed a contract extension for $11
million a year, plus a $4 million signing bonus. But then the school’s football team is said to earn, through attendance but chiefly through
television contracts, roughly $100
million a year.
Sad to report, winning basketball
and football teams have their effect
on nonathletic aspects of colleges.
I’m told that at Northwestern University, where I taught for 30 years,
the football team’s 1996 Rose Bowl
appearance, after many losing seasons, dramatically increased both applicants for admission and alumni
giving. Gary Barnett, the school’s
winning coach, had pledged to remain for years to come. He soon departed for a more lucrative contract
at the University of Colorado.
The fount of much corruption in
college basketball and football is the
alumni demand for winning teams.
At schools with so-called major programs, losing teams simply are not
tolerated. The demand for victory is
often backed up by impressive financial support, and with this money
comes great pressure. No football
coach at Notre Dame, for example,
would be allowed to keep his job after three losing seasons.
I had a friend, a successful labor
lawyer in Florida, who I’m told
pledged, over 10 years, $1 million to
the football program at his alma
mater, the University of Michigan.
This sum allowed him to stand on
the sidelines for all home games. Not
long before he died, he sent me a
note asking why those of us at
Northwestern didn’t support our
football team better. I wrote back to
say that although I did not attend
Northwestern, I did indeed intend to
donate generously to all the school’s
athletic teams, and would do so as
soon as my hefty check to Hamas
had cleared.
Mr. Epstein is author of the forthcoming “The Ideal of Culture and
Other Essays” (Axios Press) and
“Charm: The Elusive Enchantment”
(Taylor Trade), both to be published
in 2018.
.
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THE WALL STREET JOURNAL.
* * * **
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DJ TRANS À 0.18%
WSJ $ IDX À 0.37%
LIBOR 3M 2.178
Friday, March 16, 2018 | B1
NIKKEI (Midday) 21750.59 g 0.24%
Pipeline Firms Are Dealt Tax Blow
Federal regulators
eliminate certain
allowances for master
limited partnerships
A federal tax ruling dealt a
new blow to a group of pipeline firms that had helped finance a massive build-out of
energy infrastructure, intensifying questions on Wall Street
about the sector’s survival.
The decision Thursday by
the Federal Energy Regulatory
Commission to disallow certain
income-tax allowances could
hasten the demise of many socalled master limited partnerships, which were already on a
lengthy losing streak.
The stocks of several pipeline-partnership
companies
plummeted after the announcement. Shares of Enbridge Energy Partners LP fell 17%, Spectra Energy Partners LP shares
dropped 10%, while Williams
Cos. and Energy Transfer Equity shares were down more
than 10% before rebounding.
Once the darlings of the energy sector because they essentially pay no corporate tax, such
pipeline companies, or MLPs,
have lost luster as they have
struggled to keep up with demand for growing payouts to
investors and their parent companies. In response, some pipeline companies have begun converting older partnerships into
traditional corporate structures.
The regulator’s decision will
chip away at some of the tax
benefits that made these partnerships attractive in the first
place. FERC voted to reverse a
longstanding policy that allowed interstate natural gas
and oil pipelines configured as
pass-through companies to
Regulators voted to reverse a policy that allowed some pipeline companies to collect corporate income-tax expenses from customers.
collect corporate income-tax
expenses from customers.
The FERC policy has been
litigated for years because
customers claim it allowed
pipeline owners to essentially
recover income-tax costs twice
because regulators already allow partnerships to structure
rates to ensure a sufficient after-tax return. A federal appeals court agreed with customers in 2016 and told FERC
to examine the policy.
Some analysts said the reaction by investors was overblown. Many newer pipelines
have negotiated rates with
customers that won’t be affected by the change and a
handful companies that own
pipelines but aren’t structured
as partnerships also will be
unaffected. The majority of
pipeline companies are MLPs,
with a total market capitalization of about $350 billion.
Several big partnerships,
including Enterprise Products
Partners LP, Energy Transfer
Partners LP, and Magellan
Midstream Partners LP, said
the change won’t impact their
bottom lines or the rates they
charge. Analysts expect companies to appeal the decision.
Still, FERC’s decision was
the latest blow for a group of
companies that investors had
started to sour on.
“The sentiment in the group
is terrible and this does not
Please see MLP page B2
Tax benefit’s elimination
echoes in market................... B11
Money Leaving Pipelines
Investors have pulled money from mutual funds and exchange traded
products that specialize in master limited partnerships in recent weeks.
Net flows into MLPs, weekly
$300 million
200
100
0
–100
–200
–300
–400
2017
’18
THE WALL STREET JOURNAL.
Source: EPFR
For Goldman’s Solomon, ‘He’s the Guy We Call’
BY LIZ HOFFMAN
In the spring of 2014, Las
Vegas tycoon Sheldon Adelson
floated an offer to David Solomon: come run his casino empire.
Mr. Solomon, a senior Goldman Sachs Group Inc. executive, had been Mr. Adelson’s
banker since the 1990s. He had
honed his craps game on
weekend jaunts to Atlantic
City, N.J. He was 52 years old
and seen as a long shot to become chief executive of Goldman.
But Mr. Solomon turned
down the job, according to Michael Leven, who was Mr.
Adelson’s second-in-command
at the time. Mr. Adelson
wasn’t willing to give up dayto-day control, and Mr. Solomon didn’t want to be an understudy.
That patience paid off for
Mr. Solomon, who this week
was anointed the heir apparent to Goldman Chief Executive Lloyd Blankfein.
After a decade atop Goldman’s investment-banking division, Mr. Solomon won a
yearlong competition with coPresident Harvey Schwartz,
who announced his resignation Monday. The handoff
from Mr. Blankfein could be
announced as soon as yearend, according to people familiar with the matter.
Mr. Solomon’s path could
hardly be more different from
that of Goldman’s two mostrecent chief executives. Mr.
Blankfein rose through the
‘David
[Solomon] is a
‘buck stops
here’ kind of
guy,’ says one
private-equity
executive.
firm’s trading operation. His
predecessor, Henry Paulson,
came up as a white-shoe
banker, covering industrial
companies in the Midwest.
King Dollar Is Merely a Duke
changes, America would be
merely middling. The dollar—measured against trading partners and adjusted for
inflation—is in line with its
average value since President
Richard Nixon broke the link
between dollar and gold in
the early 1970s. This isn’t
about the huge swings in the
greenback in the 1970s and
1980s: The dollar is in line
with the average over the
last 20 years, too.
Mr. Solomon, in contrast,
started out in the mercenary
world of high-yield debt. He
added boardroom experience
as he rose, building an unusually diverse list of clients that
includes Mr. Adelson, Fidelity
Investments, 3M Co., privateequity firm Leonard Green &
Partners LP and co-working
firm WeWork Cos.
He doesn’t fit the mold of a
classic investment banker, who
typically spends formative
years on the road wooing corporate executives. Rather, Mr.
Solomon is known as a screwturning operator who can get
things done.
“David is a ‘buck stops
here’ kind of guy,” said John
INSIDE
STREETWISE | By James Mackintosh
“King Dollar” is official.
Larry Kudlow
used his first
TV appearance since being appointed as President
Donald Trump’s chief economic adviser to argue for a
strong dollar policy, telling
CNBC that “a great country
needs a strong currency.”
If greatness were gauged
purely on the foreign ex-
The dollar has also weakened since Mr. Trump came
to power. The dollar hasn’t
been made great again.
Americans shouldn’t panic
about the currency’s fall in
the past year, as most of it
was due to the recovery of
struggling foreign economies. A stronger euro because Europe is growing
faster might make a trip to
Paris more expensive, but it
Please see STREET page B10
LOSS OF
TOYS ‘R’ US
CHANGES GAME
The dollar’s value against trading partners, adjusted for inflation,
is in line with the average since 1973.
Real trade-weighted dollar
Monthly data
Since the U.S. election,
value of dollar against:
130
15%
120
10
110
5
Average
100
–5
80
–10
70
–15
’80
’90
*Through Wednesday, 12:15 p.m. ET †Through March 9
Source: Thomson Reuters Datastream
2000
’10
Gold*
Trading partners
Euro*
0
90
2016
BLACKROCK
RETOOLS
ITS BOARD
’17
’18
THE WALL STREET JOURNAL.
Danhakl, managing partner of
Leonard Green. “If there’s a
disagreement or something we
want Goldman to know, he’s
the guy we call. And when the
firm occasionally has to tell us
‘no,’ he does that in such a
straightforward, unapologetic
way that you can’t help but respect it.”
That reputation helped Mr.
Solomon earn the top job. Mr.
Blankfein and the rest of Goldman’s board were impressed
with the debt-underwriting
business he had built, which
last year had record revenue,
according to people familiar
with the matter. Also in his favor, the people said, were
Please see CALL page B2
INVESTING, B10
Nike Inc. said it had received
complaints about inappropriate
workplace behavior and that its
No. 2 executive has resigned,
setting off a management shuffle at the sportswear giant.
The company said Trevor
Edwards, Nike brand president
and a potential successor to
Chief Executive Mark Parker,
will leave his position immediately and retire from the company in August.
In an internal memo to staff
announcing the departure, Mr.
Parker disclosed that the company in recent weeks had received reports of “behavior occurring within our organization
that do not reflect our core values of inclusivity, respect and
empowerment.”
“We’ve heard from strong
and courageous employees,” he
wrote in the memo, which was
reviewed by The Wall Street
Journal.
Mr. Parker didn’t specify
the nature of the complaints or
whether they involved Mr. Edwards or other executives. A
Nike spokesman said there
were no allegations against
Mr. Edwards and declined to
provide details.
Mr. Edwards didn’t immediately respond to a request for
comment.
Mr. Parker said Nike was conducting a review of the company’s human-resources systems
and practices for elevating internal complaints. “This has been a
very difficult time,” he wrote.
As part of the management
shake-up, Mr. Parker said he
now planned to remain Nike’s
chairman and CEO beyond
2020. In his memo, he said he
was reorganizing the leadership
to “allow for closer management and a sharper focus on
our culture.”
Both Mr. Parker and Mr. Edwards, like many of Nike’s top
leaders, have spent decades at
the Beaverton, Ore., company.
Mr. Parker joined Nike as a
footwear designer in 1979 and
has been CEO since 2006.
Mr. Edwards, 55 years old,
joined Nike in 1992 as a regional marketing manager and
worked his way up the leadership ranks. He is credited with
championing Nike’s push into
fitness tracking. Since 2013 he
has been president of Nike
Brand and widely considered
the heir apparent to the CEO.
Mr. Edwards, who was born in
London and grew up in Jamaica, previously worked at
Colgate-Palmolive Co.
Harassment Alleged
At the Queen’s Bank
BY SIMON CLARK
AND PHILLIPA LEIGHTON-JONES
RETAIL, B3
Make America Average Again
1973
Nike No. 2
Executive
Quits Amid
Complaints
BY SARA GERMANO
JIM LO SCALZO/EPA/SHUTTERSTOCK
BY ALISON SIDER
AND CHRISTOPHER M. MATTHEWS
See more at WSJMarkets.com
LONDON—Coutts & Co. had
a problem. Women at the
three-century-old private bank,
where Queen Elizabeth II keeps
money, complained of physical
and verbal harassment by male
colleagues. Some women refused to work with star banker
Harry Keogh, the man at the
center of many of the complaints.
In 2015 the bank assigned a
senior banker, Gayle Schumacher, to conduct an internal
investigation of Mr. Keogh’s
team of dozens of bankers, according to Coutts documents
reviewed by The Wall Street
Journal. Ms. Schumacher interviewed 20 Coutts bankers
and was told about allegations
of inappropriate behavior by
Mr. Keogh and other bankers,
including lewd comments,
heavy drinking and unwanted
physical contact, according to
written accounts of the conversations reviewed by the Journal.
She relayed the information to the chief executive officer at Coutts, Michael Morley,
people familiar with the inves-
tigation said. Ms. Schumacher
told colleagues she was
shocked by what she learned,
these people said. Mr. Morley
told colleagues and Coutts’s
parent company, Royal Bank
of Scotland Group PLC, that
Mr. Keogh should leave the
bank, these people said.
Discussions followed involving Alison Rose—RBS’s head of
commercial and private banking and a potential future chief
executive—Mr. Morley and
others, and a decision was
made in mid-2015: Mr. Keogh
could stay, said people familiar
with the matter.
Mr. Keogh, 57 years old, remains a senior banker at
Coutts, which is a pillar of the
British establishment with a
long royal pedigree. He oversees fewer bankers now, but
was given responsibility for
the bank’s “most influential
clients” in 2017, according to a
Coutts press release. Clients he
has interacted with include royalty, sports stars, celebrities and wealthy landowners, according to people
knowledgeable about the bank.
Mr. Keogh declined to comment.
Please see COUTTS page B6
.
B2 | Friday, March 16, 2018
* ***
INDEX TO BUSINESSES
THE WALL STREET JOURNAL.
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
B-C
Baidu ......................... B10
Baupost Group............A5
Best Buy ..................... B3
BlackRock..................B10
Blue Apron Holdings .. B5
Broadcom .................... B4
Canadian National
Railway ..................... B3
Canadian Pacific
Railway ..................... B3
Caterpillar ................. B11
Cisco Systems...........B12
Coutts..........................B1
D-E
Deutsche Bank............B6
Dollar General...........B12
Dollar Tree ................ B12
DST Global................B11
Enbridge Energy
Partners....................B1
Energy Transfer Equity
.....................................B1
Energy Transfer
Partners....................B1
Enterprise Products
Partners....................B1
EQT............................B11
H-I
Halliburton..................B3
Hasbro.........................B3
HelloFresh...................B5
Hilton Grand Vacations
...................................B10
HNA Group................B10
HouseCanary...............B5
iHeartMedia................B5
Institutional
Shareholder Services
.....................................B4
J-L
JPMorgan Chase.........A3
Land of Lincoln Mutual
Health Insurance......A5
Las Vegas Sands ........ B2
Leonard Green &
Partners....................B1
M-N
Magellan Midstream
Partners....................B1
Mattel..........................B3
Microsoft ............. B4,B12
Moda Health Plan ...... A5
Monsanto..................B11
Mosaic.......................B11
Netflix.......................B12
Nike.............................B1
Nvidia........................B12
P-R
Pandora Media..........B12
Qualcomm...................B4
Robinhood Markets..B11
Rock Holdings.............B5
Ross Stores...............B12
Royal Bank of Scotland
Group.........................B1
S-T
Siemens.......................B5
Simplay3 ..................... B3
Spectra Energy Partners
.....................................B1
Spotify Technology
...................... B5,B11,B12
Statoil ......................... B5
Target........................B12
Tencent Holdings......B10
Tesla.......................A1,B2
3M ............................... B1
Tilden Park Capital
Management ............ A5
Time Warner...............B4
Torq Energy Logistics.B3
Toyota Motor..............B2
Toys “R” Us ................ B3
21st Century Fox........B2
U-X
Unilever.......................B3
Walmart....................B12
Walt Disney................B2
WeWork ...................... B1
Williams...............B1,B11
Wynn Resorts.............B3
Xiaomi..................B4,B10
INDEX TO PEOPLE
A-B
I
P
Agrawal, Rajesh..........B3
Al-Hamad, Abdlatif .. B10
Antonelli, Michael .... B11
Balkin, Michael.........B12
Blankfein, Lloyd..........B1
Brandon, David ........... B3
Iger, Bob......................B2
Ivascyn, Daniel..........B12
Pajjuri, Srini................B4
Parker, Mark ............... B1
Paulson, Henry............B1
Perelman, Ronald ....... B2
Pitaro, James..............B2
Pitkethly, Graeme.......B3
Pittman, Bob...............B5
C
Caldas, Charles...........B5
Caso, Chris..................B4
Cayne, James............B12
Chukumba, Anthony.B12
Cohen, Stephanie........B2
Cole, Christopher........B2
D
Danhakl, John.............B1
Dees, Daniel................B2
Digenan, Thomas......B12
Dyal, Gordon ............... B2
J
Johnson, Brian............B2
Johnson, Margaret
“Peggy”...................B10
K
Kaur, Kiranjeet............B4
Keogh, Harry...............B1
Klarman, Seth.............A5
Krause, Thomas..........B4
Kuroda, Haruhiko......B11
L
LeCompte, Eric ........... A5
Lee, Rocky.................B10
Leven, Michael............B1
Liu, Shiyu..................B10
E-F
M
Edwards, Trevor..........B1
Ek, Daniel..................B11
Farley, Jim...................B2
Fields, Mark................B2
Mackay, Jon..............B12
Martin, Sarah-Marie...B2
Morgan, Howard.........B2
Morley, Michael..........B1
G-H
N-O
Gadhia, Jayne-Anne ... B6
Gardner, Brian ............ A5
Hackett, Jim ............... B2
Holt, Derek..................A2
Nair, Raj......................B2
Negroni, Hector..........A5
Ohsaki, Shuichi.........B11
Oshikubo, Naoya.......B11
CALL
Continued from the prior page
some 150 meetings Mr. Solomon had taken with clients of
Goldman’s securities division
over the past 15 months.
Executives say he is patient
and exacting, skills that should
help Goldman as it tackles a
plan to increase annual revenue by $5 billion. “He grinds,”
one colleague said.
Mr. Solomon grew up in
Scarsdale, N.Y., working weekends at the local Baskin-Robbins. After graduating from
Hamilton College, he came to
Drexel Burnham Lambert in
1986.
His early clients were an
eclectic bunch united by their
need for money: industrial
conglomerates, private-equity
Executives say he is
patient and exacting.
‘He grinds,’ one
colleague says.
and real-estate firms, and investors such as Mr. Adelson
and Ronald Perelman.
After Drexel failed, Mr. Solomon went to Salomon Brothers and then Bear Stearns,
both known as sharp-elbowed
transactional firms.
“Bear was a commission
shop. David wanted to get into
the relationship business,”
said Howard Morgan, a private-equity executive who has
been friends with Mr. Solomon
since college. “He used to say
even then that if there was
any one place he’d like to
work, it was Goldman.”
Mr. Solomon got his chance
in 1999. He joined to run leveraged finance, part of a wave of
outside hiring around Goldman’s initial public offering.
Three years in, he was put in
charge of stock underwriting,
a move that marked him inside the firm as an executive
on the rise.
In 2006, Mr. Solomon was
named a co-head of investment banking, overseeing several thousand merger and underwriting bankers.
He is credited with professionalizing that division, once
a loose collection of fiefs.
Business-unit heads came to
dread his year-end compensation roundtables, in which Mr.
Solomon would question
R
Reichert, Eberhard......B5
Rose, Alison................B1
Rutte, Mark.................B3
S-T
Schiller, Howard ......... B2
Schwartz, Alan ......... B12
Schwartz, Harvey.......B1
Söderström, Gustav . B11
Sekido, Takahiro ....... B11
Skipper, John..............B2
Solomon, David ... B1,B12
Stroud, Chris...............B5
Tan, Hock .................... B4
W-Z
Weinstein, Harvey......A2
Wilson, Mark ............ B10
Winkelried, Jon...........B2
Wynn, Elaine...............B3
Wynn, Steve...............B3
Zielinski, Jarrett.........B3
raises that were once routinely granted and insist on
weeding out underperformers.
Some longtime bankers lamented what they saw as a decline in collegiality and autonomy. A few rainmakers left
after sparring with Mr. Solomon, including Christopher
Cole, Howard Schiller and Gordon Dyal, according to people
familiar with the matter.
But the makeover worked.
Over Mr. Solomon’s 10 years
running the investment bank,
profit margins nearly doubled,
and the division’s share of
Goldman’s revenue rose to
22% from 11%. The unit buoyed
Goldman’s results as trading
slowed after the global financial crisis.
Mr. Solomon has worked to
ease Goldman’s sweatshop culture, limiting the hours its
youngest bankers can work.
“You have to create an atmosphere where people can work
hard, but they also have opportunities to have a life,” he
said on a Goldman podcast
last year.
He has also recruited and
promoted more women. Mr.
Solomon helped bring senior
bankers to the firm and
pushed recruiters to focus on
gender parity. Goldman’s incoming U.S. class for next fall
is 48% women, up from 41%
last year, and on Thursday the
bank set a goal of parity by
2021. Mr. Solomon helped
bring senior women, including
private-equity banker SarahMarie Martin, to the firm and
tapped Stephanie Cohen, a
merger banker, as Goldman’s
strategy chief last year.
Mr. Solomon has flexed his
muscles in other ways. He lobbied Mr. Blankfein to add Daniel Dees, a senior Goldman
technology banker, to its management committee last year,
according to people familiar
with the matter. Mr. Dees’s position hasn’t traditionally carried a seat on the committee.
The move rankled some senior
bankers, even as it bolstered
Mr. Solomon’s reputation as a
manager with muscle.
Mr. Solomon has flirted
with jobs outside Goldman
over the years. In addition to
Mr. Adelson’s offer to run Las
Vegas Sands Corp., Mr. Solomon also talked with privateequity firm TPG in 2015 about
joining as its co-CEO, people
familiar with the matter said.
That job eventually went to a
former Goldman partner, Jon
Winkelried.
—Joann S. Lublin
contributed to this article.
Ford Looks to Beat Toyota Hybrids
BY JOHN D. STOLL
Ford Motor Co. Chief Executive Jim Hackett said Thursday he sees “upside” to the
auto maker’s longer-term 8%
target for profit margins, citing
progress on cost-cutting initiatives and an overhaul of product-development procedures.
Mr. Hackett, nearing one
year at the helm, said the
company is emerging from an
extended “think phase” during
which about 10 top executives
hammered out a series of strategic steps. “We’re just going
to run the company better,”
Mr. Hackett said.
Ford plans to surpass Toyota Motor Co. in annual U.S.
sales of hybrid vehicles in
2021, for instance, looking to
lead a segment where Detroit
auto makers have long been
laggards. Ford is relatively
strong in hybrids already, but
Mr. Hackett said its presence
in that market is “unsung.”
Officials at Toyota, which
leads the market, couldn’t immediately be reached for
comment.
Hybrids, which combine a
conventional combustion engine with a battery to improve
fuel economy, have been a bit
slow to catch on in the broader
market due to high costs.
Jim Farley, president of
global markets at Ford and
one of Mr. Hackett’s top lieutenants, said the auto maker
aims to boost demand for hybrids by putting battery power
in its most popular vehicles—
including the F-150 pickup
truck, the Mustang sports car
and Explorer sports utility.
Ford will also roll out in 2020
a “Mustang-inspired” electric
Jim Hackett, nearing one year as CEO, says: ‘We’re just going to run the company better.’
Fiat Chrysler Loses
Ruling in Jeep Case
The Georgia Supreme Court
upheld the results of a wrongful death trial that hit Fiat
Chrysler Automobiles NV with
nearly $40 million in legal
damages on account of a Jeep
fire that killed a 4-year-old boy.
The court’s nine justices on
Thursday unanimously rejected
arguments from the Italian-U.S.
auto maker that a trial judge
erred in allowing plaintiffs’ lawyers to present Chief Executive
Sergio Marchionne’s compensation as evidence.
A lawyer representing the
family of the boy asked jurors
in the 2015 trial to award
damages of $120 million, describing the amount as less
than two years worth of the
CEO’s annual compensation.
Fiat Chrysler “is disappointed in this decision,” a
spokesman said. “We are considering our legal options.”
—Mike Spector
SUV capable of 300 miles on a
charge, a move to better compete with Tesla Inc., Audi AG
and the Jaguar brand.
Ford also plans a pair of
off-road SUVs to take on Fiat
Chrysler Automobiles NV’s
Jeep Wrangler. The Wrangler
is among the most profitable
vehicles sold in the world and
has a lock on the market for
rough-and-tumble off-roaders.
Mr. Hackett’s outlook comes
as Ford deals with a rough
stretch. The auto maker has
suffered a series of safety re-
calls in the U.S., fallen behind
Fiat Chrysler in profit margins
and lost ground in China.
The Dearborn, Mich., auto
maker also attracted unwanted
attention in February when a
top executive, Raj Nair, was
fired following misconduct allegations.
Investors haven’t shown
much support for Mr. Hackett,
who took over for Mark Fields
as CEO last May. Shares of Ford
closed at $11.07 on Thursday,
little changed from when the
auto maker hired Mr. Hackett,
a former CEO of the Steelcase
Inc. officer furniture company.
“The journey to realizing
the benefits of any plan will be
a long one,” Barclays analyst
Brian Johnson said in a note
published Thursday. “We continue to believe that arguably
there won’t be much to get excited about with the Ford story
until 2019 or perhaps 2020.”
ESPN Executive’s Exit Tied to Extortion
BY SHALINI RAMACHANDRAN
John Skipper, the former
president of ESPN who
abruptly resigned in December, citing a substance-abuse
problem, said his decision to
step down after more than 20
years at the company was
prompted by an extortion attempt by a person from whom
he purchased cocaine.
In an interview with the Hollywood Reporter, Mr. Skipper
said he disclosed the situation
to Bob Iger, chief executive of
Walt Disney Co., the majority
owner of ESPN, on Friday, Dec.
15. His resignation, which he
called a mutual decision at the
time, was announced the following Monday.
Reached by phone, Mr.
Skipper confirmed the contents of the interview with the
Hollywood Reporter and declined to comment further. A
spokeswoman for Disney declined to comment.
“In December, someone from
whom I bought cocaine attempted to extort me,” Mr.
MLP
Continued from the prior page
help,” said Ethan Bellamy, an
analyst at Robert W. Baird & Co.
The firms’ tax-advantaged
structure and promises of large
payouts helped draw billions of
dollars of investment in pipelines and other energy infrastructure that was needed at
the height of the shale boom,
when companies were racing to
bring the output from new oil
and gas fields to market.
But the tide has started to
shift.
The partnerships were marketed as the toll roads of the
energy industry, and investors
expected that their payouts
would be insulated from volatile commodity prices.
It didn’t work out that way.
Partnerships slashed their dividend-like payouts during the oil
rout that began in 2014. Investors who owned a portfolio of
MLPs in 2014 would have had
their distributions cut by a third
since then, said Mr. Bellamy.
Retail investors who bought
MLPs in the boom times are
“fed up,” said Tyler Rosenlicht, who manages a portfolio
of MLPs and infrastructure investments at Cohen & Steers,
an investment firm.
Oil prices have stabilized at
above $60 a barrel and companies are getting back to work
drilling new wells, creating a
need for more pipes. But the
partnerships have languished.
The Alerian MLP Index was
one of the worst-performing
assets last year—losing 6.5%
MICHELLE MCLOUGHLIN FOR THE WALL STREET JOURNAL
F-G
Facebook......................B4
Family Dollar.............B12
Fiat Chrysler
Automobiles ............. B2
Fidelity Investments..B1
Ford Motor..................B2
Fundamental Advisors
.....................................A5
Glass Lewis.................B4
GoldenTree Asset
Management ............ A5
Goldman Sachs Group
............................. B1,B12
Guggenheim Partners
...................................B12
NICK CAREY/REUTERS
A
Adobe Systems.........B12
Alibaba Group Holding
...................................B10
AllianceBernstein
Holding......................A5
Alphabet....................B12
Amazon.com
.................. A3,B3,B5,B12
Apple....................B4,B12
Aurelius Capital
Management ............ A5
Autonomy Capital ...... A5
Ex-President John Skipper said his decision to resign came after
an extortion attempt by a person from whom he bought cocaine.
Skipper said in the interview
with the Hollywood Reporter.
“They threatened me, and I
understood immediately that
threat put me and my family
at risk, and this exposure
would put my professional life
at risk as well,” he said. “I
foreclosed that possibility by
disclosing the details to my
family, and then when I dison a total return basis compared with the nearly 22% that
the S&P 500 returned.
Investors have pulled more
than $500 million from funds
and exchange-traded products
that specialize in energy partnerships in recent weeks.
Thursday’s decision by
FERC is likely to force many
older pipelines to lower rates,
say analysts, potentially making it more difficult to fund
hundreds of billions in planned
infrastructure projects.
Some companies, including
Kinder Morgan Inc. and Oneok
Inc. have done away with their
partnerships converting them
to traditional corporations.
The FERC decision will accelerate the conversion of
older partnerships into traditional corporations, according
to Height Securities analyst
Katie Bays. “No question about
it, for older MLPs you’re going
to see a more fast-paced transition,” she said.
Others say that even if retail
investors maintain their chilly
stance, the MLP structure isn’t
going anywhere. More MLPs
can now live within their
means without infusions of
cash from equity markets. Institutional investors and private equity backers have funneled money into the space.
“I don’t think the model is
going away. I still think it’s an
effective way to build critical
infrastructure,” said Rob
Thummel, who manages a
portfolio of MLPs and other
energy investments at Tortoise Capital Advisors. “If you
have more production, you
need more pipelines.”
cussed it with Bob [Iger], he
and I agreed that I had placed
the company in an untenable
position and as a result, I
should resign.”
Mr. Skipper’s resignation almost three months ago came at
a critical time for ESPN. The
sports-TV juggernaut is coping
with a shifting media landscape
where consumers are cutting
back on cable-TV subscriptions,
and ESPN is planning to launch
its own streaming service this
year. His exit came only a few
days after Disney agreed to buy
$52.4 billion of assets from
21st Century Fox Inc., including 22 regional sports networks. Earlier this month, Disney named James Pitaro, who
has been Disney’s consumer
products and digital chief since
2016, as ESPN’s new president.
Mr. Skipper said he has
since gotten therapy and spent
time in a rehabilitation facility, and he has continuing resources to help him now. In
the interview, he said his cocaine use didn’t interfere with
his job “other than a missed
plane and a few canceled
morning appointments.”
“I do want to make it clear,
however, that anything I did in
this regard, and anything else
resulting from this, was a personal problem,” Mr. Skipper
said. “My drug use never had
any professional repercussions, but I still have profound
regret.”
.
Friday, March 16, 2018 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
By Kate O’Keeffe,
Chris Kirkham
and Sam Goldfarb
bined 21% stake, potentially
setting off a scramble to control the $19 billion casino
company.
Wynn Resorts said in a
Thursday filing that Mr. Wynn
may now “seek to sell all or a
portion” of his 12% stake on
the open market or in privately
negotiated transactions, adding
that he would conduct any
such sales “in an orderly fashion and in cooperation with the
Company.”
Mr. Wynn resigned last
month as the chairman and
chief executive of the casino
operator after a Wall Street
Journal article in January detailed allegations that he had
engaged in sexual misconduct
against employees.
He has been under pressure
to sell his stock because his position as the company’s largest
shareholder has left him and
the company subject to additional scrutiny by regulators in
Nevada and Massachusetts,
who are investigating the
claims. Mr. Wynn has said it
was “preposterous” that he
would assault a woman; he
hasn’t responded to other allegations.
Wynn Resorts also appears
to have removed restrictions
that could have slowed any potential sale by Mr. Wynn. In a
Feb. 15 filing, the company had
said that, if and when Mr.
Wynn was released from the
shareholder agreement and
gained the ability to sell his
shares, he couldn’t sell more
than a third of his stock on the
open market in any given quarSteve Wynn
resigned last
month as the
chairman and
chief executive
of Wynn
Resorts.
ter. In a Feb. 20 filing, the company said that limitation didn’t
apply to private sales. No restrictions were mentioned in
Thursday’s filing. A Wynn Resorts spokesman referred earlier questions about the changing language to Mr. Wynn, and
Thursday denied that the company had removed any restrictions. He didn’t provide further
explanation.
A lawyer for Mr. Wynn said
that he is declining participate
in any reporting by The Wall
Street Journal because he
doesn’t believe the newspaper
will treat him fairly.
It is unclear what Ms. Wynn,
who owns 9% of Wynn Resorts,
intends to do with her shares.
Though she had fought for six
years to get the shareholder
agreement dissolved so she
could have the right to sell
them, she is now weighing several options, including the possibility of becoming more involved in the company given
Mr. Wynn’s departure, according to people familiar with her
thinking. Wynn Resorts ousted
Ms. Wynn from its board in
2015 after she filed suit against
Mr. Wynn regarding her shares.
One complication for both
Mr. Wynn and Ms. Wynn if they
seek to sell their shares is the
fact that Wynn’s stock is expensive. It took a hit after the Jan.
26 Journal article but traded
above $190 this week, following
the company’s efforts to resolve outstanding litigation.
A possible complication for
Wynn Resorts is a negotiation
with bondholders. Under the
terms of some bonds, if any investor were to gain a larger
stake in the company than Mr.
and Ms. Wynn combined, Wynn
Resorts would be forced to offer to buy back all of the bonds
issued by its Wynn Las Vegas
subsidiary at a cost of more
than $3 billion. The Wynn Resorts spokesman said: “The
most likely scenario would
have a $500 million impact,
which the company could finance or pay off.”
—Alexandra Berzon
contributed to this article.
Shipments of grain, oil
fall behind schedule
after past cost cuts
made in energy slump
Backlog
Canadian National Railway
deliveries are troubled by delays
and cancellations.
Rate of fulfilled
weekly grain-car orders
BY JACQUIE MCNISH
TORONTO—Service problems at Canadian National
Railway Co., caught off guard
by an oil-sector rebound, are
causing severe delays in deliveries of grain, fracking sand,
crude and other goods from
Wisconsin to the Canadian
West Coast.
Producers say they are falling weeks, and in some cases
months, behind deliveries to
customers because of erratic
and reduced service at CN,
Canada’s largest railway.
Oil-field services company
Halliburton Co. warned last
month that it would take a hit
of 10 cents a share on firstquarter earnings because of
CN delays in deliveries of sand
to hydraulic-fracturing shaleoil sites.
The ouster of CN Chief Executive Luc Jobin last week
was prompted by concerns
from the company’s board that
the railway wasn’t moving
quickly enough to boost capacity, a person familiar with the
matter said.
The railway said last week
it is investing 250 million Canadian dollars (US$193 million) to build new tracks and
yards from Chicago to Western
Canada to expand capacity. It
Canadian National
Canadian Pacific
100%
80
LUKE SHARRETT/BLOOMBERG NEWS
Steve Wynn may seek to
sell his shares in Wynn Resorts Ltd. after he and ex-wife
Elaine Wynn scrapped an
agreement that had prevented
them from selling their com-
Top Canada Railroad Bogs Down
60
40
20
0
Aug. 2017
Jan. ’18
Source: AG Transport Coalition
Canadian National Railway is investing to expand capacity.
THE WALL STREET JOURNAL.
also said it has leased 130 locomotives, expects to add 775
conductors by the end of June
and is asking staffers to postpone holidays and retirements.
The slowdown is particularly critical for grain farmers
in Alberta and Saskatchewan,
where CN has canceled deliveries of more than 18,000 cars
ordered to fulfill weekly grain
shipments since August, according to an agricultural coalition that tracks shipments.
Rival Canadian Pacific Railway Ltd. canceled 100 cars
during that period. Most grain
from western Canada is
shipped overseas.
Jean-Jacques Ruest, appointed CN’s interim chief executive last week, told a con-
The network backlog is also
straining capacity for crude-oil
shipments.
Jarrett Zielinski, CEO of
Torq Energy Logistics Ltd.,
which operates six crude-oil
rail terminals in Canada, can’t
find enough room on the
trains to meet demand from
shippers. The company is being asked to ship 50,000 barrels of crude a day, but can
only find room for about 20%
of that amount, he said.
Some oil producers are coping by loading oil on trucks
that drive across the border
and then load the cargo onto
U.S. trains, he said. “In some
cases, that is still more reliable than train shipping in
Canada,” Mr. Zielinski said.
ference Wednesday in New
York that he was “on the
clock” to “rebuild capacity to
meet the demand.”
The added capacity recently
boosted weekly car deliveries
by about 50% in early March
from February lows, a CN
spokesman said.
Both CN and CP have grappled with delivery delays in
recent months because of
harsh winter weather. But the
problems run much deeper at
CN because the railway aggressively cut costs in 2015 to
adjust to a downturn in demand in the energy sector.
Over 1,000 employees were
laid off and about 200 locomotives were placed in long-term
storage, a spokesman said.
The delays are so acute that
Canada’s federal government
has asked CN and rival CP to
submit a plan this week for
clearing up the crop backlog.
“Canada’s international reputation as a reliable supplier is
at stake,” Transport Minister
Marc Garneau and Agriculture
Minister Lawrence MacAulay
said in a letter to the rail chief
executives.
CN has delivered 17% of
grain cars ordered in western
Canada for the last two weeks
of February, according to the
agricultural coalition, leaving
some 40 ships idling off Canada’s Pacific Coast as they
wait for grain loads going
overseas. Some farmers are
months behind in deliveries to
customers, threatening cash
flows needed as this year’s
planting season approaches.
“This is costing us a lot of
money,” said Greg Porozni, a
grain farmer east of Edmonton, Alberta, who said he has
been unable to sell January
and February crop contracts
after months of canceled local
CN grain-car deliveries.
The slowdown has forced
Mr. Porozni to increase his
bank loan and delay seasonal
crop purchases for the planting season, which begins in six
weeks, he said.
“We’re very, very frustrated
that CN hasn’t fixed a service
problem that it has known
about for months,” Mr. Porozni said.
—Vipal Monga
contributed to this article.
Toy Makers Rattled by Loss of Toys ‘R’ Us
BY PAUL ZIOBRO
AND LILLIAN RIZZO
The liquidation of Toys “R”
Us Inc. has sent the toy industry reeling, leaving Mattel
Inc., Hasbro Inc. and other
manufacturers without a large
chain devoted to selling games
and dolls and forcing them to
scramble to secure other outlets to carry their items.
Toys “R” Us, which had
more than $11 billion in revenue in its latest fiscal year, is
one of the retail chains that
were once seen by vendors as
“category killers” and have
emerged as crucial checks on
the power of Amazon.com Inc.
Stores like Best Buy Co. and
Barnes & Noble Co. provide
electronics manufacturers and
book publishers with vast networks of physical showrooms.
The likely death of Toys “R”
Us, which early Thursday filed
plans to liquidate its U.S. operations and other businesses,
means the $27 billion U.S. toy
industry will no longer have a
national partner to showcase
its wares year-round, test
products and find the next
Shopkins or ZhuZhu Pet.
It was a quick unraveling
for Toys “R” Us since its September chapter 11 bankruptcy
filing. In a call with employees
Wednesday, Toys “R” Us Chief
Executive David Brandon described a series of events,
starting with what he described as a “devastating” holiday season that led to plans
to close more stores and then
to exit from the baby-products
business to focus on toys.
Ultimately, the company is
expected to liquidate its U.S.
operation, a decision that would
affect 33,000 jobs. The company also is liquidating operations in other countries, and
plans to sell its business in Canada, Central Europe and Asia.
“This industry has been devastated,” said Tom Murdough,
founder of Simplay3 Co., which
makes plastic play sets and
ridable vehicles. “This is a major, major hit to the industry.”
In five decades of selling
BRIAN BRANCH PRICE/ASSOCIATED PRESS
Wynns
Are Free
To Sell
Shares
The chain had over $11 billion in revenue in its last fiscal year. Its liquidation will force companies to find other outlets to carry their toys.
toys, Mr. Murdough hasn’t
known a day without Toys “R”
Us. He founded and sold both
Little Tikes Co. and Step2 Co. in
the past and he now is the CEO
of Simplay3, which he said gets
between 20% and 30% of its
sales through Toys “R” Us.
Toy makers don’t anticipate
recouping all of their sales this
year, or ever, if Toys “R” Us goes
away permanently without a replacement. UBS estimates that
Hasbro would lose close to 3%
of its sales for the year if Toys
“R” Us liquidates, while Mattel
stands to lose slightly more.
Hasbro CEO Brian Goldner
said the maker of Nerf blasters
and My Little Pony dolls is
looking for new places to take
its inventory.
“There will be some disruption, more short term than
long term, and then we move
forward with growth,” Mr.
Goldner said at an investor
conference this month.
The toy-industry growth
rate could slump going forward, too. Toys “R” Us was primarily responsible for uncovering what would become the
next big thing, since it took
chances that other retailers
avoided. “There aren’t going to
be as many breakout hits, not
as many new items that can
blossom,” said BMO Capital
Markets analyst Gerrick Johnson. “Toys ‘R’ Us was a testing
ground for a lot of things.”
Toy sales may be concentrated in the other two large retailers, Target Corp. and Walmart Inc., in the near term.
Some toy companies have
expanded their presence in unexpected places in recent
years, so the blow isn’t as bad
as it might have been when
Toys “R” Us held a larger
share of the market. Jeremy
Padawer, co-president of
Wicked Cool Toys, the maker
of Cabbage Patch dolls and
Pokémon toys, says that not
only has Amazon.com become
a bigger part of its business,
but sites like Zulily.com, retailers like Hallmark and even
grocers and drugstores have
become options to sell its toys.
Game Over
What Toys "R" Us owed key vendors when it filed for bankruptcy
on Sept. 19, in millions
Mattel
$136M
Hasbro
59
Graco
59
Spin Master
33
LEGO
32
Just Play
29
Source: Toys "R" Us
THE WALL STREET JOURNAL.
Unilever Picks Rotterdam Over London for Headquarters
BY SAABIRA CHAUDHURI
AND COSTAS PARIS
LONDON—Unilever PLC
will consolidate its dual headquarters in Rotterdam, in the
Netherlands, instead of London, a politically charged decision that came despite lastminute lobbying from the
British government.
The decision, pending for
months, has taken on outsize
significance in the U.K., which
is in the process of negotiating
its exit from the European
Union. Critics of that move—
triggered by a 2016 referen-
dum—have warned the split
from the EU could force some
big companies to move to
mainland Europe. Rajesh
Agrawal, London’s deputy
mayor for business, described
the move as “clearly disappointing news for the capital.”
Unilever, the maker of Magnum ice cream and Hellmann’s
mayonnaise, said Thursday the
move wasn’t based on Brexit
concerns, and that it wouldn’t
significantly affect jobs, taxes
or investment plans. The company said the decision may cost
it its place in Britain’s blue-chip
index, the FTSE 100, of which it
is the 14th-largest component.
Unilever’s announcement
came alongside details of a
broader restructuring of its
operations into three divisions
with separate headquarters
that will shrink its corporate
center and give its businesses
more dedicated resources. Its
beauty and personal-care business, as well as its home-care
unit, will be based in London.
Its foods and refreshment division will continue to be
based in Rotterdam.
The Wall Street Journal
previously reported the company’s board had decided on
the Dutch city. The change is
expected to be completed by
the end of the year.
Unilever had for months
wrangled with the question of
where to situate a combined
company after deciding it
would unify its dual BritishDutch legal structure, which
essentially consists of two
separate British and Dutch operating companies, each with
its own shares. It currently
splits its headquarters between London and Rotterdam.
Unilever’s finance chief,
Graeme Pitkethly, said Thursday
the decision hinged on the fact
that shares in the Netherlands
entity made up about 55% of the
combined ordinary shares for
the group and that these trade
with greater liquidity than
shares in the U.K. entity.
A person familiar with the
matter said Unilever took into
account issues related to Brexit,
as well as a charm offensive by
Dutch Prime Minister Mark
Rutte, a former Unilever executive. Mr. Rutte successfully campaigned to scrap a Dutch dividend withholding tax, making
the Netherlands more attractive
to Unilever than it would otherwise have been.
.
B4 | Friday, March 16, 2018
* ***
THE WALL STREET JOURNAL.
TECHNOLOGY
CHINA CIRCUIT | By Li Yuan
Hot Xiaomi Carries Big Risks
Group to Tighten
Web Privacy Rules
BY JOHN D. MCKINNON
GIULIA MARCHI/BLOOMBERG
Back in
2014, smartphone maker
Xiaomi became that rarest of unicorns, the most valuable
startup in the world, with a
$46 billion valuation.
Xiaomi applied a seemingly potent formula for conquering the China market.
Its phones had quality features and looks, like those of
Apple’s iPhones, but came
with low prices. Adding to
the allure, they were sold
only online, with flashy marketing events—sometimes
featuring co-founder Lei Jun
looking like Steve Jobs in a
black turtleneck—to stir up
interest.
Then Xiaomi’s star
dimmed after it missed sales
targets, released phones
with glitches and endured
product delays.
Instead of fading, Xiaomi
made a comeback. It doubled
down on quality control,
ventured into other developing countries for sales and
changed tack on marketing
to open brick-and-mortar
stores. Mr. Lei is looking to
bring his phones to the U.S.
late this year.
Now Xiaomi plans a blockbuster initial public offering
of shares, perhaps the biggest the world will see this
year. Valuations range from
$80 billion to $200 billion,
depending on whom you ask.
So is Xiaomi in danger of
repeating past mistakes?
Making phones is a brutal
business. It requires a sense
of technology trends, accurate supply-chain planning
and meticulous execution.
That’s why Apple is the most
successful hardware company
and most valuable company
in the world. Few companies
perform so consistently.
In the case of Xiaomi
(pronounced shao-me), some
investors caution that pursuing a sky-high valuation
WSJ.com/Tech
The handset maker is planning a blockbuster IPO. Valuations range from $80 billion to $200 billion.
would be a mistake. Whether
for an unlisted tech startup
or company seeking a public
listing, a high valuation can
bring exacting demands. It
leaves little room for mistakes, these investors say.
Mr. Lei, Xiaomi’s cofounder, himself announced
the ambitious 2015 target
that the company later
flubbed, raising doubts about
its valuation.
A person close to Xiaomi
says bankers are excited
about the IPO because, at its
core, Xiaomi is an internet
company and so deserves
higher valuations than hardware companies.
Xiaomi’s management
team proved itself with the
2017 comeback. The company’s China market share
rose last year to 12%, and its
shipments grew 50% to 96
million units, according to
research firm Counterpoint.
Xiaomi’s revenue reached
north of $15.2 billion with a
profit of at most $1 billion in
2017, according to the company and estimates by bankers and investors.
How does a $1 billion
profit justify a valuation of
Signal Problems
Shipments in China's smartphone
market, the biggest in the world,
declined for the first time in 2017.
Smartphone shipments in China
500 million
400
Huawei
300
Oppo
Vivo
200
Xiaomi
Apple
100
Others
0
2016
2017
Source: International Data Corp.
THE WALL STREET JOURNAL.
$80 billion or even $200 billion? The answer depends on
whether Xiaomi is a hardware company, as most
phone makers are, or an internet company, which is the
way the Xiaomi camp sees it.
Hardware companies
aren’t favored stocks for
fund managers. Three managers told me they wouldn’t
buy into Xiaomi’s IPO because the Chinese hardware
business is beset with low
margins, ruinous price wars
and low brand loyalty.
Xiaomi boosters argue the
company isn’t a pure hardware play. Like Apple, they
say, Xiaomi has an array of
offerings, such as internetconnected devices and rice
cookers. Its browser and app
store generate advertising
and games revenue.
Apple is valued at $913.17
billion, making its price-toearnings ratio 18.34. If that’s
the model, then Xiaomi,
based on its $1 billion profit,
should be valued at $18.34
billion, much lower than its
current valuation in the private market.
Kiranjeet Kaur, an International Data Corp. analyst,
says Xiaomi has a way to go
before its devices, apps and
services form an ecosystem
like Apple’s.
Others don’t expect the
company to evolve that far.
“Xiaomi is not going to become Apple,” says the assetmanager CEO in Hong Kong,
who adds, “It’s a hardware
company.”
nies that register websites and
collect the data would be left
in limbo when the EU’s law
takes effect in late May. Failure
to comply with the EU directive could expose them to large
new fines, and many are feeling pressure to shut down access, internet experts say.
A group of companies including Facebook Inc., Microsoft Corp. and Time Warner
Inc. sent a letter to Icann officials this week urging the multinational organization to “immediately undertake expedited
efforts” to adopt an accreditation system for legitimate investigators.
U.S. officials also suggest
Icann’s actions could severely
limit investigators’ ability to
keep tabs on people or companies that launch hacking,
phishing and denial-of-service
WASHINGTON—A global
body that oversees internet domain names is preparing a significant tightening of its privacy standards in response to
new European Union policies.
The U.S. government and
some major American tech
businesses warn the move,
which is expected to be adopted within the next couple
of months, will threaten their
ability to track down bad actors on the internet.
Investigators have long used
online tracking information to
determine where malevolent
activity on the internet originates. The information, known
as Whois data, is routinely collected by companies that run
internet registries when people
sign up a website. The data
typically includes names, addresses and email contacts for
people responsible for a site. It
has been publicly available
since the beginning of the internet.
The expected change is a
response by a multinational
internet oversight body, the
Internet Corporation for Assigned Names and Numbers,
or Icann, to a new EU privacy
rule, which takes effect May
25. The EU rule is aimed at
protecting people’s online data
from indiscriminate use. That
includes Whois data.
In response to the EU privacy rule, Icann has floated a
plan that would limit the public’s access to only the most
basic information about a
website, such as general location data. The plan also would
set up a new system allowing
access to more detailed data
for people who are accredited—a group that potentially
would include law enforcement, cybersecurity experts
and business brand-protection
investigators.
But even many basic elements of the accreditation system have yet to be determined.
Absent a process, the compa-
Icann is amending
its internet regime
in response to new
EU privacy policies.
attacks, or on websites that
rip off commercial brands.
The top U.S. official monitoring such developments on
the internet, David Redl,
warned in a speech at Icann’s
meeting in Puerto Rico this
week that “the United States
will not accept a situation in
which Whois information is
not available or is so difficult
to gain access to that it becomes useless for the legitimate purposes that are critical
to the ongoing stability and
security of the internet.”
Some internet experts say
the plans could lead to more
online denial-of-service attacks, for example.
A top Icann official, Akram
Atallah, said: “We’re trying to
build a compromise solution
that works for our constituents and the public.”
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Years of consolidation have
left Broadcom Ltd.’s Hock
Tan—the chip industry’s ultimate deal maker—surveying a
landscape with few targets that
rival the heft of the one the
chief executive just failed to
buy, Qualcomm Inc.
That bid, which President
Donald Trump blocked Monday, represented the biggest
tech deal ever and would have
more than doubled Broadcom’s
revenue.
Not many semiconductor
companies remain that fit Mr.
Tan’s exacting specifications:
those with market-leading
products with limited competition, opportunities to cut costs,
and with something to offer
Broadcom’s two big customer
groups, handset makers and
data-center operators. Plus,
there aren’t many big enough
to make a difference to an enterprise with a $110 billion market capitalization.
“There are only so many elephants out there,” said Chris
Caso, an analyst with Raymond
James. “Now one is gone.”
On Wednesday, after formally withdrawing its Qualcomm bid, Broadcom said it
would proceed with plans to
change its domicile to the U.S.
from Singapore. The move
could help it with future acquisitions by avoiding the sort of
national security concerns that
derailed its effort to acquire
San Diego-based Qualcomm.
Broadcom finance chief
Thomas Krause on a Thursday
conference call with investors
said the company does see “potential targets that are consistent” with its business model
and would drive greater returns
than buying back shares.
Amit Daryanani, an analyst
at RBC Capital Markets, recently combed the S&P 500 index for companies with valuations between $10 billion and
$120 billion, as well as financial
features that might appeal to
Mr. Tan. Of roughly 18 chip
companies that made the analyst’s initial cut, four looked like
a potential fit.
Xilinx Inc., with a market
value of just under $20 billion,
is one possible target, according to analysts including Mr.
Daryanani.
LUCAS JACKSON/REUTERS
BY TED GREENWALD
Broadcom CEO Hock Tan
The Silicon Valley company,
which makes programmable
chips that can be used for purposes including artificial intelligence, is a market leader with
characteristics Mr. Tan seeks. It
sells its products for far more
than they cost to make—a 70%
gross margin, according to Mr.
Daryanani—yet expenses exceed the level Broadcom typically deems reasonable, seen in
the company’s 29% pretax
profit margin. That gap leaves
Mr. Tan room to wring out further profits.
Some analysts said Maxim
Integrated Products Inc., valued
at $13.5 billion, offers similar
opportunities. Its products
would extend Broadcom’s reach
in the high-margin world of analog chips, which differ in fundamental ways from digital
Call for Protest Vote
Against Qualcomm
Institutional Shareholder
Services Inc., an influential
proxy-advisory firm, recommended Qualcomm Inc. shareholders make a symbolic vote in
protest against the chip giant’s
moves to block Broadcom Ltd.’s
$117 billion takeover bid.
ISS, in a note to investors,
stood by its original recommendation that shareholders vote
for four of Broadcom’s six nominees for Qualcomm’s 11-person
board, even though the votes
won’t count.
The vote, which will take
place at a March 23 shareholder
chips. However, Maxim’s customers are in automotive, industrial and other areas outside
Broadcom’s base, so they don’t
fit neatly into Mr. Tan’s strategy, according to Srini Pajjuri of
Macquarie Capital (USA) Inc.
Spokeswomen for Xilinx and
Maxim declined to comment.
Adding either of those potential targets would increase
Broadcom’s adjusted per-share
earnings by only a few percent, compared with the 20%
pop Qualcomm would have
contributed, Mr. Pajjuri said.
Moreover, he said, they
wouldn’t come cheaply based
on current stock prices.
Xilinx trades at 27 and
Maxim at 23 times their forward per-share earnings, according to FactSet. Qualcomm
traded at around 14.5 times
earnings in November, when
Mr. Tan made his initial bid.
Nobody, however, expects
Mr. Tan to stop looking. The
$117 billion bid for Qualcomm
followed a string of deals that
built Broadcom into a giant.
“Acquisitions are part of
Broadcom’s DNA, and Hock Tan
will always be hunting for businesses that fit his criteria,” Mr.
Caso said. But Broadcom’s
growth has been so healthy,
that its chief “doesn’t need to
be in a hurry,” the analyst said.
Broadcom on Thursday reported its first-quarter revenue
rose 29% to $5.33 billion. Profit
surged to $6.57 billion from
$252 million the previous year.
meeting, had been postponed
when the Committee on Foreign
Investment in the U.S.—whose
intervention Qualcomm welcomed—first signaled its opposition to the proposed deal on national security grounds.
ISS’s decision underscores
the frustration of Qualcomm
shareholders at how the company’s board handled the bid
and earlier perceived missteps
that have weighed on the stock.
ISS in its original recommendation wanted to urge a negotiation with Broadcom.
Glass Lewis & Co., another
major proxy adviser, flipped its
recommendation from supporting all six Broadcom nominees
to supporting Qualcomm’s board.
—David Benoit
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | B5
BUSINESS NEWS
Amazon Faces New Probe in Japan Overseas
Sales Jump
Antitrust regulators
examine practices
of online retailer
for a second time
For Indie
Records
BY MAYUMI NEGISHI
Independent record labels
are experiencing a surge in international revenue as streaming services like Spotify Technology SA open up foreign
markets previously accessible
only to local music companies
and major labels with global
marketing and distribution capabilities.
The proliferation of streaming is changing the shape of independent labels’ business.
Some now draw almost half of
their streams from listeners
outside their home country—
and much of that growth is happening in unexpected markets.
In Latin America—not long
ago thought to be a lost cause
thanks to physical and digital
piracy—independent record labels’ revenue grew at three
times the overall world-wide
rate, according to Merlin Network, a trade group. The organization negotiates digitaldistribution deals on behalf of
more than 20,000 independent
labels based in 53 countries.
Brazil recently surpassed
France, Canada and Australia as
a source of music revenue for
Merlin members. Merlin Chief
Executive Charles Caldas predicts it will become the group’s
fifth-biggest territory in 2018.
Mexico, Chile and Argentina are
already in the top 20.
In documents filed with the
Securities and Exchange Commission this month, Spotify
said its service is growing
faster in Latin America than in
North America or Europe, although those two markets still
have many more Spotify users
than Latin America.
While the record industry
overall is seeing certain markets
emerge as meaningful sources
of revenue, the international
growth driven by streaming is
more pronounced for independent labels, which didn’t have
the infrastructure to distribute
and market physical formats
across the globe. Before Merlin
was formed, most independents
were distributed by major labels, which often wouldn’t distribute them abroad.
The download market, with
its free 30-second song samples, was more successful than
the physical market for indies,
but the streaming world has
made exploration much easier,
especially thanks to the playlists that are among Spotify’s
most popular features.
Independent labels’ market
share on streaming platforms
is much better than it ever
was with physical or download
formats; Merlin’s member labels account for 14% of listening time across services.
Merlin earned more than
$40 million in audio streaming
revenue in Latin America last
year. That is 18 times what the
organization earned in 2014,
the year Spotify and Google
Play were fully launched
across the region.
AKIO KON/BLOOMBERG NEWS
TOKYO — Amazon.com
Inc.’s Japanese unit has come
under antitrust scrutiny for
the second time in as many
years as retailers become
more dependent on the ecommerce giant for customer
traffic.
Officials from the Fair
Trade Commission, Japan’s
antitrust watchdog, have visited the headquarters of Amazon Japan as they investigate
possible violations of the Antimonopoly Act, a government
official said Thursday.
Amazon, which generated
nearly 7% of its global sales in
Japan last year, is fully cooperating with the commission,
an Amazon Japan spokeswoman said, without elaborating.
The official declined to provide specifics on the probe,
but said that in general the
commission was concerned
about cases in which sellers of
goods may face harm from
spurning the demands of more
powerful retailers.
He added that the commission was interested in ways
larger online retailers can reduce incentives for price cutting and can gain an advantage over other online
shopping-mall operators.
In a previous probe, the
commission found that Ama-
BY ANNE STEELE
A media event in Tokyo last year that previewed Amazon’s efforts to sell alcoholic products on its website in Japan.
zon Japan had demanded that
suppliers offer Amazon customers prices equal to or less
than their prices on other online shopping sites such as
those run by Rakuten Inc. or
Yahoo Japan Corp. The commission said the practice
could give Amazon Japan the
broadest lineup of goods at
the lowest prices and hinder
competition.
The commission closed the
probe nine months ago after
Amazon Japan promised to
stop requiring sellers to
match the price offered on
other sites.
Amazon commanded the
biggest portion of Japan’s ecommerce market in 2016, at
more than 20%, according to a
survey by the Japan External
Trade Organization. That
scale makes it hard for sellers—already fighting for customers as the population
shrinks—to turn down requests from Amazon, government officials have said.
In 2017, Amazon had sales
of $11.9 billion in Japan, making the country the third-big-
gest market for the Seattlebased company after the U.S.
and Germany.
As in the U.S., Amazon’s
rapid growth and aggressive
pricing have roiled Japan’s retail industry—to the extent
that the Bank of Japan has
cited low e-commerce prices
as one reason for the nation’s
low inflation rate.
iHeartMedia Inc., the
company behind the biggest
U.S. radio broadcaster, filed
for bankruptcy protection after reaching an agreement in
principle with investors over
a balance-sheet restructuring,
a decade after a private-equity-led buyout left the company burdened with billions
in debt.
iHeartMedia said in a statement early Thursday the
agreement in principle was
with holders of more than $10
billion of its outstanding debt
and its financial sponsors.
The chapter 11 filing in the
U.S. Bankruptcy Court for the
Southern District of Texas,
Houston division, came after
months of talks with investors
on restructuring terms.
Based in San Antonio,
iHeart operates 856 terrestrial
stations and controls Clear
Channel Outdoor Holdings
Inc., one of the biggest billboard companies in the world.
The company said Clear
Channel Outdoor and its subsidiaries didn’t commence
chapter 11 proceedings. It also
said its day-to-day operations
would continue as usual during the restructuring process.
iHeartMedia said it believes
its cash on hand, together
with cash generated from continuing operations, will be sufficient to fund and support the
business during the bankruptcy proceedings.
“The agreement we announced today is a significant
accomplishment, as it allows
us to definitively address the
more than $20 billion in debt
that has burdened our capital
structure,” said Bob Pittman,
the co-founder of MTV, and
iHeartMedia’s chairman and
chief executive.
iHeartMedia expects to
complete a restructuring support agreement soon, the
company said in its filings.
The company filed for chapter 11 with a plan that has the
backing of 62% of iHeartMedia’s senior debtholders, according to court filings.
Support of two-thirds in
amount of the debtholders,
owed $16.2 billion, and more
than half in number of each
class of creditors in the company’s capital structure is
needed to confirm a chapter 11
plan.
Despite sluggish sales and
a steady loss of listeners to
new platforms, the company
had avoided bankruptcy for
years by pushing out debt
maturities through refinancing and swaps.
BUSINESS WATCH
ROCK HOLDINGS
Amrock Ordered
To Pay $706 Million
A Texas jury ordered an affiliate of mortgage lender Quicken
Loans Inc. this week to pay
$706 million to a real-estate
technology startup that had accused it of misappropriating intellectual property.
Amrock Inc., a provider of title insurance and real-estate valuations that has the same
owner as Quicken Loans, Rock
Holdings Inc., was told to pay
the sum to startup HouseCanary Inc. on Wednesday.
Amrock said it would appeal.
HouseCanary co-founder
Chris Stroud said in an interview
that the jury award validated
the value of its trade secrets.
—Peter Rudegeair
SIEMENS
Ex-Executive Pleads
Guilty in Bribe Case
A former Siemens AG executive pleaded guilty on Thursday in Manhattan federal court
to his role in a conspiracy to
pay $100 million in bribes to
Argentine government officials
in exchange for a $1 billion
contract to produce national
identity cards.
The plea by Eberhard Reichert is the second by an individual in a massive bribery investigation that led to a thenrecord corporate bribery
penalty. Siemens, in 2008,
agreed to pay a combined $1.6
billion to U.S. and German authorities for violating the Foreign Corrupt Practices Act by
bribing government officials
around the world.
Siemens revamped its corporate compliance program in the
wake of the settlement.
A lawyer for Mr. Reichert
didn’t immediately reply to a request for comment. A Siemens
spokeswoman didn’t respond to
requests seeking comment.
—Samuel Rubenfeld
STATOIL
Oil Company
To Change Name
Norway’s state-backed oil
company Statoil ASA is changing its name to Equinor, part of
its effort to recast itself as the
world’s greenest oil company.
Statoil—whose name won’t
switch until a board vote in
May—is in the midst of a strategic shift to renewable-energy
production.
—Sarah Kent
Marshmello and Adam DeVine appeared at the 2018 iHeartRadio Music Awards last Sunday.
Blue Apron Hopes Sales in Stores Provide Kick
BY HEATHER HADDON
Blue Apron Holdings Inc.
will try to give its struggling
business a boost by selling
meal kits in stores, acknowledging that its subscriptiononly model isn’t enough in an
intensifying fight to fill people’s dinner plates.
One of the first meal-kit
companies, Blue Apron has
been losing customers amid increased competition and distribution problems. The company
reported 750,000 subscribers
last month, down from a peak
of over one million last year. Its
shares, down 46% so far this
year, are trading around a fifth
of their debut price of $10 in
July. HelloFresh SE, the only
other publicly traded meal-kit
company, is up around 5% this
year.
Independent surveys have
shown that some consumers
are turned off by the expense
and commitment of meal-kit
subscriptions. Blue Apron
Chief Executive Brad Dickerson
said he believes the company
can find more customers for
both that model and à la carte
meals sold in stores and
through its website.
“The access to consumers is
much broader in this avenue
than the avenue we’ve been
operating in in the past,” he
said in an interview.
Executives wouldn’t say
how much Blue Apron will
charge for the kits it hopes to
have in stores by the end of
this year. Blue Apron’s subscription meals start around
$9 per person.
Blue Apron officials declined to specify the retailers
they are in talks with but said
some currently sell their own
meal kits.
“We are in active conversations with a variety of retailers
and plan to have product in
stores in 2018,” a company
spokeswoman said.
Shares of the New Yorkbased company were up nearly
10% in the wake of the expansion news Thursday, before
closing up 1.4% at $2.19.
Blue Apron, which began
business in 2012, has cut expenses and improved profit
margins since Mr. Dickerson
succeeded co-founder Matt
Salzberg as CEO last fall. Mr.
Dickerson said improvements
at a production facility in New
Jersey and elsewhere will help
Blue Apron make and distribute more types of meals to
homes and now stores.
“The heavy lifting of investments is in the rearview mirror now,” he said.
BLUE APRON
BY SOMA BISWAS
AND ANNE STEELE
MARIO ANZUONI/REUTERS
Radio Giant iHeartMedia Files for Chapter 11
A Blue Apron meal kit.
Less Appetite
Blue Apron's total meal-kits and
other goods orders per quarter
5 million
4
3
2
1
0
2015
2016
2017
Source: the company
THE WALL STREET JOURNAL.
But competition in meal kits
is growing online and in stores
as food makers seek new customers interested in fresh
products and convenience.
Walmart Inc. and Kroger
Co. also are selling their own
branded meal kits, while Amazon.com Inc. offers on-demand
boxes online. Other big food
companies are introducing
prepackaged fresh foods to tap
the fastest-growing segment
of grocery-store sales.
Walmart said last week it
wants to sell its meal kits in
2,000 stores this year. Weight
Watchers International Inc.
also said last week it will sell
more of its branded meal
boxes at supermarkets.
Fresh food sales at retailers
grew 1.2% last year, according
to Nielsen, while sales of the
packaged and canned products
that fill shelves in the center
of many stores were flat. Sales
of meal kits at grocery stores
grew 27% last year to nearly
$155 million, Nielsen said.
Blue Apron’s move into supermarkets could appeal to
smaller grocers that don’t
want to create their own
branded meal kits, said Bob
Goldin, co-founder of the Pentallect Inc. food consultancy.
But selling Blue Apron outside
high-end stores could dent the
company’s premium-brand image, he said.
Mr. Dickerson said the quality of a Blue Apron meal would
speak for itself, no matter
where the kit is sold.
.
THE WALL STREET JOURNAL.
B6 | Friday, March 16, 2018
BUSINESS NEWS
COUTTS
Median pay for men exceeds
that for women at both Coutts
and its parent company, Royal
Bank of Scotland...
How much more* men earned
than women at Coutts ( )
and RBS ( ):
0%
25
50
75
100
Overall
pay
Bonuses
....and men make up the majority
of the highest-paid quartile at
both companies.
Highest
quartile
*Median | Note: The pay differences are
calculated by taking all the hourly pay-rates
for men and women separately and finding
the median for each set, and then calculating
the percentage gap.
PHILIP DUCAP
Continued from page B1
Instead, the bank disciplined Mr. Keogh by withholding a bonus, giving him a written warning and assigning a
coach, people familiar with the
investigation said.
The people familiar with
the investigation said the
bankers who were interviewed
were trustworthy and that investigators had no reason to
doubt the details in their accounts. Mr. Keogh denied allegations of inappropriate behavior, one of the people said.
He accepted the disciplinary
action without admitting to allegations, another of the people said.
“These allegations were
very serious. No one should
ever have to experience this
type of inappropriate behavior
in the workplace,” RBS’s Ms.
Rose said in an email. “This
matter in question was properly investigated in line with
our established policies and
procedures and based on the
findings of this process, appropriate action was taken.”
The investigation and its
outcome unfolded before
workplace conduct became a
front-burner issue. The process
at Coutts angered many of the
employees involved, according
to people familiar with the situation, in part because Mr. Keogh remained at the bank.
Few people knew Mr. Keogh
was disciplined in 2015 and
some of the women who reported inappropriate behavior
left the bank. Ms. Schumacher,
58, who conducted the investigation, retired at the end of
2015 after 15 years at Coutts,
including a period as chief investment officer. Mr. Morley,
the Coutts CEO who asked her
to investigate, joined Deutsche
Bank AG the following year.
Coutts hasn’t received complaints about Mr. Keogh after
2015, a person familiar with
the situation said.
“Over the last few years I
have appointed a new management team at Coutts and we
have focused on improving the
culture and levels of inclusion
across the business,” Ms. Rose
said.
Pay Gap
THE WALL STREET JOURNAL.
A Coutts inquiry into workplace behavior focused on a team led by banker Harry Keogh.
Coutts was founded in 1692.
Today, members of the royal
family still bank there.
Coutts employees are required to follow RBS’s policies
on diversity and inclusion,
which include promoting
women. Coutts bankers told
the investigation those policies
didn’t always protect employees, who feared consequences
if they complained. One female
banker whom Mr. Keogh allegedly behaved inappropriately
toward at a company dinner in
2015 told the investigation
that Mr. Keogh said he brought
in one-third of the bank’s business so was untouchable, according to the written account
reviewed by the Journal.
Coutts is a profitable unit
of RBS, which was bailed out
by British taxpayers during
the financial crisis and is still
majority-owned by the state.
In October, a former RBS
executive told a U.K. Parliament inquiry into women in
the finance industry that there
was a “pervading sexism” at
RBS when she worked there
before 2007. Jayne-Anne Gadhia, now CEO of U.K. lender
Virgin Money, said she recalled a senior woman who
was very upset because she
was expected to sleep with her
boss. Coutts spokeswoman
Anna Stephens said RBS was
“shocked” by the allegation
but couldn’t substantiate it because a report wasn’t made at
the time.
Ms. Schumacher interviewed 20 bankers in June
2015, according to notes of the
meetings. The Journal reviewed the written accounts of
those conversations, compiled
by a note-taker, and interviewed nine of the 20 people
involved, along with several
former Coutts bankers who
weren’t interviewed in the investigation. Those who agreed
to discuss their statements in
detail with the Journal said
the written accounts were an
accurate description of what
happened. Some of those interviewed asked the Journal
not to publish their names.
The female banker who alleged inappropriate behavior
at the company dinner in April
2015 was in her 20s and had
been a graduate trainee for a
few months. Weeks before the
dinner, Mr. Keogh had touched
her groin in front of colleagues
at a meeting, ostensibly to indicate the location of an injury
he had, she told the investiga-
tor, according to the written
account. At the end of another
meeting, when she asked him
whether the injury was better,
he asked her to touch his
groin, and she declined, she
told the investigator.
The dinner, attended by
about 20 senior bankers and
graduate trainees, was meant
to inform the younger employees about Coutts. During the
dinner, Mr. Keogh swore and
boasted of his sexual exploits,
the female banker told the investigator.
As he left, he whispered
to the female banker that
“he’d take her with him if he
could,” according to the notes
from her meeting with the investigator.
Around the time of the dinner, Coutts’s then-CEO Mr.
Morley asked Ms. Schumacher
to investigate the bank’s workplace culture, according to the
people familiar with the investigation.
While reassigning bankers
to new roles, senior Coutts executives had been told some
women didn’t want to work
for Mr. Keogh, and some said
they would rather resign, according to the people familiar
with the investigation.
Felicity Selcoe, a banker
mentioned by some people in
the investigation, said in an
interview, after being contacted by the Journal, that she
had complained to her manager about Mr. Keogh’s behavior at a 2014 event to celebrate England rugby great
Jonny Wilkinson. Prince Harry
was among the guests.
Ms. Selcoe said she was
representing the bank at the
event, with Mr. Keogh and her
manager, Simon Hopes. Mr.
Keogh told guests at the gathering she was his mistress,
based on what she said guests
later told her. After the event,
she complained to Mr. Hopes,
but the bank didn’t follow up
with her, she said. She resigned in 2015, after recounting the incident to human-resources managers.
Mr. Hopes later told the investigation, in response to
questions about drinking and
“social mixing” at Coutts, that
Ms. Selcoe “wasn’t a big
drinker and never had an issue,” according to the written
account of his interview. Mr.
Hopes told the investigation
he couldn’t recall witnessing
any misbehavior by Mr. Keogh,
according to notes of his inter-
The Lion’s Share
When you hold your financial journalism to the
highest standards, it pays off. At this year’s State
Street Institutional Journalism Awards, FN won
six out of a possible 11 prizes—its highest ever tally.
Mark Cobley
Winner | Passive Investment / Indexing (including ETFs)
Winner | Journalist of the Year – Alternatives
Winner | Award for Best Editorial Comment
Shortlisted | Journalist of the Year – Regulatory Issues,
and Breaking News Journalist of the Year
Elizabeth Pfeuti
Winner | Breaking News Journalist of the Year
Winner | Journalist of the Year – Diversity & Inclusion
Shortlisted | Journalist of the Year – Pensions Issues,
and Award for Best Editorial Comment
Tabby Kinder
Winner | Award for Best Newcomer
Chris Newlands
Shortlisted | Breaking News Journalist of the Year, and Award
for Best Editorial Comment
Discover even more award-winning financial journalism.
Visit fnlondon.com
©2018 Dow Jones & Company, Inc. All rights reserved. 6DJ6419
view. Mr. Hopes declined to
comment for this article.
Mr. Keogh encouraged a
“club” culture on his team,
and those who didn’t participate were sidelined, another
female banker told the investigation. She told the investigation she didn’t want to work
on Mr. Keogh’s team. She left
Coutts in 2016.
When another female
banker struggled to get the attention of colleagues in a
meeting involving Mr. Keogh’s
team, a male banker shouted
out, “if there was a pole up
there people would look,” according to notes from the investigation.
One male banker told the
investigation that a “toxic
combination” of alcohol and
sexual innuendo created a
workplace on Mr. Keogh’s
team that wasn’t inclusive. He
described witnessing “casual
racism and sexism,” according
to the written account of his
interview.
Another male banker said
in the investigation that employees were afraid to come
forward and complain because
they believed that they would
be reported to their managers,
hurting their career prospects.
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24873.66 s 115.54, or 0.47%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 26.03 21.38
P/E estimate *
17.08 17.81
Dividend yield
2.15
2.33
All-time high 26616.71, 01/26/18
Nasdaq Composite Index
Last
2747.33 t 2.15, or 0.08%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio * 25.79 24.68
P/E estimate *
17.75 18.27
Dividend yield
1.87
1.98
All-time high 2872.87, 01/26/18
Last Year ago
7481.74 t 15.07, or 0.20%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 27.25
25.80
P/E estimate *
21.05
20.14
Dividend yield
0.99
1.13
All-time high: 7588.32, 03/12/18
Current divisor 0.14523396877348
26300
2900
7500
25500
2825
7300
24700
2750
7100
23900
2675
6900
23100
2600
65-day moving average
Session high
UP
Close
t
DOWN
Session open
Open
t
Close
6700
65-day moving average
65-day moving average
6500
2525
22300
Session low
Bars measure the point change from session's open
Jan.
Feb.
6300
2450
21500
Dec.
Dec.
Mar.
Jan.
Feb.
Dec.
Mar.
Jan.
Feb.
Mar.
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
52-Week
Low
High
% chg
% chg
YTD 3-yr. ann.
Dow Jones
Industrial Average
0.18
18.53
-0.49
-0.07
28597.78 28379.96 28438.08 -40.39
737.31
730.35
731.97 -3.26
-0.14
691.06
Utility Average
Total Stock Market
Barron's 400
0.47
25053.87 24753.29 24873.66 115.54
Transportation Avg 10648.71 10548.50 10592.01
680.34
Nasdaq Stock Market
Nasdaq Composite
7525.44
Nasdaq 100
7075.55
684.23
7463.18
7010.01
-0.44
-0.20
7481.74 -15.07
7030.97 -10.01
26616.71 20404.49
18.8
0.6
11373.38
8783.74
15.4
-0.2
5.8
774.47
647.90
-1.3
-5.4
6.1
29630.47 24125.20
757.37
610.89
15.2
16.5
2.8
3.0
9.7
9.5
7588.32
7131.12
-0.14
5793.83
5332.53
11.9
8.4
9.9
26.8
29.9
15.4
17.7
S&P
500 Index
2763.03
2741.47
2747.33
-2.15
-0.08
2872.87
2328.95
15.4
2.8
10.2
MidCap 400
SmallCap 600
1933.51
967.76
1918.43
958.09
1922.24
961.21
-7.04
-3.97
-0.36
-0.41
1995.23
979.57
1681.04
815.62
11.2
13.9
1.1
2.7
8.8
10.8
Other Indexes
Russell 2000
1588.02
1572.16
1576.62
-7.69
-0.49
1610.71
1345.24
13.8
2.7
8.6
13637.02 11324.53
9.9
-0.5
5.8
3.7
NYSE Composite
-0.15
12813.60 12722.93 12743.61 -19.06
564.78
559.63
NYSE Arca Biotech
4876.16
4781.84
NYSE Arca Pharma
550.03
544.95
545.26
KBW Bank
Value Line
560.88
-0.49
113.11
112.05
112.53
79.59
78.67
PHLX§ Oil Service
78.81
138.80
133.56
134.83
1431.96
17.41
1415.57
15.96
1422.07
16.59
Company
SPDR S&P 500
SPY
9,974.6
CUZ
8,215.7
Energy Transfer Partners ETP
6,827.3
16.61
…
unch.
25.20
8.62 -0.001
-0.01
8.62
24.90
8.62
…
unch.
16.75
16.41
4,751.2
33.68
…
unch.
33.96
33.68
WPZ
4,518.4
35.10
…
unch.
35.20
35.10
VanEck Vectors Oil Svcs OIH
4,396.5
24.05
…
unch.
24.05
24.05
PwrShrs QQQ Tr Series 1 QQQ
3,759.3 171.85
0.32
0.19 172.28 171.43
Percentage gainers…
Amyris
AMRS
375.5
6.89
1.31
23.48
7.00
5.79
KEYW Holding
KEYW
7.0
7.89
0.70
9.74
8.00
7.19
24.1
2.09
0.15
7.73
2.09
1.94
Catabasis Pharmaceuticals CATB
Ring Energy
REI
5.4
14.69
0.78
5.61
14.69
13.91
Daxor Corp
DXR
17.8
13.95
0.60
4.49
13.98
13.12
Overstock.com
OSTK
767.5
41.85
-6.35
-13.17
49.45
41.55
BioTime
BTX
21.9
2.35
-0.19
-7.48
2.55
2.35
Credit Suisse S&P MLP Idx MLPO
210.0
13.38
-0.89
-6.25
13.38
13.38
Gemphire Therapeutics GEMP
14.0
6.69
-0.37
-5.24
7.09
6.40
Sabre Corp.
33.0
20.88
-1.15
-5.22
22.08
20.88
13.8
5.7
5.6
0.1
-0.9
...And losers
116.52
88.02
16.7
5.5
15.3
93.26
76.42
-5.3
-7.6
6.3
-2.55
171.55
117.79
-19.9
-9.8
-9.5
-0.10
-1.42
-0.64 -3.71
1445.90
37.32
960.01
9.14
41.8
48.0
13.5
50.3
26.2
1.2
SABR
Sources: SIX Financial Information; WSJ Market Data Group
Region/Country Index
Close
Percentage Gainers...
Latest
% chg
Net chg
3120.70
404.41
269.02
The Global Dow
DJ Global Index
DJ Global ex U.S.
YTD
% chg
1.1
1.8
0.9
–0.13
–0.07
–0.03
–3.99
–0.30
–0.07
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
657.01
–0.19
–1.25
Sao Paulo Bovespa 84928.20 –1122.76 –1.30
0.11
S&P/TSX Comp
15670.62
17.01
S&P/BMV IPC
47817.05 –339.39 –0.70
Santiago IPSA
4220.96
–23.59 –0.56
EMEA
Eurozone
Belgium
Denmark
France
Germany
Israel
Italy
Netherlands
Russia
South Africa
Spain
Sweden
Switzerland
Turkey
U.K.
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
OMX Copenhagen
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
FTSE/JSE All-Share
IBEX 35
SX All Share
Swiss Market
BIST 100
FTSE 100
FTSE 250
376.88
380.37
3950.78
905.04
5267.26
12345.56
1504.95
22713.47
533.30
1247.28
58203.77
9684.20
577.49
8878.98
117201.54
7139.76
19828.41
S&P/ASX 200
5920.80
Shanghai Composite 3291.11
Hang Seng
31541.10
S&P BSE Sensex
33685.54
Nikkei Stock Avg
21803.95
Straits Times
3517.73
Kospi
2492.38
Weighted
11018.45
SET
1816.08
0.52
0.62
0.55
0.54
0.65
0.88
0.39
1.16
0.44
1.94
2.33
21.47
4.84
33.90
107.82
5.84
261.13
2.33
–3.91
–219.40
–4.30
2.16
9.65
–391.13
7.07
8.29
–14.50
–0.27
106.09
–150.20
26.66
–21.68
6.30
–20.35
2.68
–0.31
–0.38
–0.04
–0.33
–0.24
–0.01
–0.44
–0.61
–0.18
0.38
0.11
0.10
0.04
0.34
0.12
0.25
0.15
2.3
11.2
–3.3
–3.1
0.2
–3.2
–1.3
–0.7
–2.4
–0.9
–4.4
–0.3
3.9
–2.1
8.0
–2.2
–3.6
1.5
–5.4
1.6
–7.1
–4.3
–2.4
–0.5
5.4
–1.1
–4.2
3.4
1.0
3.5
3.6
Sources: SIX Financial Information; WSJ Market Data Group
Company
Symbol
Daxor Corp
KBS Fashion Group
Image Sensing Systems
Akcea Therapeutics
Flex Pharma
DXR
Cogint
Coastway Bancorp
Covenant Transportation A
Adaptimmune Therap ADR
Allied Motion Techs
COGT
Ossen Innovation ADR
Novume Solutions
Presbia
Restoration Robotics
Arcus Biosciences
OSN
Latest Session
Close Net chg % chg
52-Week
Low
% chg
High
13.35
7.25
4.40
28.14
7.36
5.55
2.31
1.35
7.80
1.58
71.16
46.76
44.26
38.35
27.34
21.66
15.00
4.80
31.23
8.98
3.40
1.41
2.50
8.10
2.68
82.4
44.7
33.3
...
74.0
3.65
27.20
32.05
10.94
37.64
0.70
4.70
5.13
1.73
5.71
23.73
20.89
19.06
18.78
17.88
6.95 2.50
27.60 17.30
32.38 15.86
13.41 3.90
39.29 19.43
-5.2
55.9
61.9
130.3
87.0
3.10
NVMM
3.84
LENS
3.06
HAIR
6.81
RCUS
17.00
0.45
0.55
0.41
0.90
2.00
16.98
16.72
15.47
15.23
13.33
8.90
5.50
7.14
11.95
...
KBSF
ISNS
AKCA
FLKS
CWAY
CVTI
ADAP
AMOT
54.2
...
-1.3
...
...
1.50
0.51
1.86
3.80
...
Most Active Stocks
Company
Symbol
Alerian MLP ETF
Kinder Morgan
SPDR S&P 500
Neovasc
iShares MSCI Emg Markets
AMLP
Advanced Micro Devices
Micron Technology
Ford Motor
General Electric
Finl Select Sector SPDR
AMD
Volume % chg from Latest Session
(000) 65-day avg Close % chg
121,529
71,101
SPY
68,521
NVCN
63,514
EEM
63,464
GE
XLF
52-Week
High
Low
594.4 9.74 -5.07
368.7 16.31 -0.67
-37.9 275.00 -0.11
713.9 0.11 -16.97
-9.0 49.32 -0.36
62,878
48,071
47,208
46,890
46,093
F
7.6
1.8
2.8
-46.8
-26.3
12.89
9.14
21.92 15.07
286.63 231.61
2.12
0.11
52.08 38.71
11.46 0.88
58.84 -1.57
11.07 0.45
14.36 0.63
28.95 0.03
15.65
63.42
13.48
30.54
30.33
9.70
25.40
10.14
13.95
22.00
4.50%
t
4.00
3.50
New car loan
t
3.00
2.50
AM J J A S O ND J FM
2017
2018
TrustCo Bank
Albany, NY
2.37%
518-436-9043
Sunshine Savings Bank
Tallahassee, FL
2.49%
850-219-7200
Think Mutual Bank
Rochester, NY
2.49%
800-288-3425
UniBank for Savings
Whitinsville, MA
2.49%
800-578-4270
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.25-1.50 1.25-1.50
Prime rate*
4.50
4.50
Libor, 3-month
2.07
2.18
Money market, annual yield
0.30
0.34
Five-year CD, annual yield
1.62
1.64
30-year mortgage, fixed†
4.46
4.41
15-year mortgage, fixed†
3.92
3.88
Jumbo mortgages, $424,100-plus† 4.71
4.73
Five-year adj mortgage (ARM)† 4.24
4.30
New-car loan, 48-month
3.53
3.55
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.50 l
l
4.00
l
1.15
0.25 l
l
1.27
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.50
2.18
0.36
1.64
4.48
3.94
4.96
4.38
3.60
1.25
1.25
1.91
-0.08
0.14
0.41
0.68
0.27
0.48
0.51
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
Asure Software
Innovate Biopharm
iFresh
Entravision Commun
Wheeler Real Est Invt Tr
ASUR
TC PipeLines
Smart Final Stores
Enbridge Energy Ptrs Cl A
Quintana Energy Services
Sportsman's Warehouse
TCP
Thursday
t
One year ago
1
3 6
month(s)
1 2 3 5 710
years
maturity
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
15%
3.00
10
2.25
5
1.50
0
0.75
–5
0.00
–10
30
Euro
Yen
WSJ Dollar index
2017
2018
Corporate Borrowing Rates and Yields
Yield (%)
Last Week ago
52-Week
High
Low
1431.091
2.662
2.683
2.736
1.818
0.722 0.509
10-yr Treasury, Ryan ALM 1675.486
DJ Corporate
370.760
Aggregate, Barclays Capital 1907.150
High Yield 100, Merrill Lynch 2832.208
Fixed-Rate MBS, Barclays 1956.530
Muni Master, Merrill
514.992
2.824
3.741
3.160
6.116
3.340
2.491
2.866
3.719
3.170
6.081
3.380
2.460
2.943
3.747
3.180
6.319
3.400
2.494
2.058
2.879
2.380
4.948
2.660
1.736
1.809
2.732
1.462
3.635
1.057
2.619
791.500
5.997
5.999
6.077
5.279
3.978 6.163
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
9.32 -16.99 -64.58
4.82 -2.63 -35.30
2.16 -0.81 -27.27
7.04 -2.14 -23.31
9.13 -2.69 -22.76
33.74
14.40
9.30
18.83
24.02
8.95
4.74
1.44
7.03
7.95
...
-62.1
-41.6
...
-29.1
JILL
YTEN
WOW
SELB
INNT
IFMK
EVC
WHLR
SFS
EEP
QES
SPWH
Close
52-Week
Low
% chg
13.67
14.10
5.00
5.05
3.27
-3.75
-3.68
-1.28
-1.25
-0.73
-21.53
-20.70
-20.38
-19.84
-18.25
17.53
25.80
18.24
7.90
14.40
9.47
3.43
4.81
5.00
3.25
19.2
7.6
-70.9
-17.2
-76.1
40.09
6.00
10.83
7.92
4.01
-8.76
-1.30
-2.27
-1.56
-0.74
-17.93
-17.81
-17.33
-16.46
-15.58
61.74 38.20
13.95 5.75
19.64 10.33
10.00 7.47
6.99 3.40
-33.6
-48.1
-39.0
...
-13.4
Ranked by change from 65-day average*
Company
Symbol
Daxor Corp
Evoqua Water Technologies
RGC Resources
iSh MSCI Saudi Arabia
J.Jill
DXR
Hilton Grand Vacations
Solid Biosciences
RiverFront Dyn Uncon Incm
National Vision
Arcadia Biosciences
HGV
AQUA
RGCO
KSA
JILL
SLDB
RFUN
EYE
RKDA
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
18,549
11,241
234
1,112
7,176
17870
2642
2417
2126
1906
13.35 71.16
21.79 -4.47
25.97 0.35
28.62 0.10
4.82 -35.30
21.66 3.40
25.36 19.10
31.99 19.07
28.79 24.21
14.40 4.74
12,100
5,392
248
4,694
5,770
1800
1717
1655
1531
1520
43.89 -6.62
9.32 -64.58
25.35 0.18
32.06 -4.50
42.49 -11.46
47.75 27.96
33.74 8.95
26.59 25.26
43.80 27.19
66.56 3.60
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Total Return (%)
52-wk
3-yr
–0.197
2.373
1.350
3.745
1.182
1.937
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Country/currency
.00004392
Vietnam dong
Argentina peso
.0492 20.3150 9.2
Brazil real
.3043 3.2863 –0.8
Canada dollar
.7660 1.3056 3.8
Chile peso
.001651 605.80 –1.6
Ecuador US dollar
1
1 unch
Mexico peso
.0535 18.7008 –4.9
Uruguay peso
.03532 28.3100 –1.7
Venezuela b. fuerte .00002736650.0001 354285.3
Asia-Pacific
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Bond total return index
High
U.S.-dollar foreign-exchange rates in late New York trading
Forex Race
3.75%
3.55%
1.99%
651-777-8365
SLDB
Latest Session
Close Net chg % chg
Americas
t
Prime rate
Lake Elmo Bank
Lake Elmo, MN
Solid Biosciences
J.Jill
Yield10 Bioscience
WideOpenWest
Selecta Biosciences
Country/currency
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
s
New car loan
NYSE Arca
CURRENCIES & COMMODITIES
Compare the performance of selected
global stock indexes, bond ETFs,
currencies and commodities at
WSJ.com/TrackTheMarkets
s
Selected rates
A consumer rate against its
benchmark over the past year
Symbol
Track the Markets
s
U.S. consumer rates
Nasdaq
Total volume*1,966,132,650 237,972,183
Adv. volume* 747,098,579 61,831,914
Decl. volume*1,181,061,454 173,461,795
Issues traded
3,051
1,327
Advances
1,263
392
Declines
1,657
901
Unchanged
131
34
New highs
83
2
New lows
50
30
Closing tick
30
39
Closing Arms†
1.20
1.27
Block trades*
7,981
1,165
* Common stocks priced at $2 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
Benchmark
Yields
Treasury yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Company
Volume Movers
KMI
MU
Total volume* 812,286,235 12,267,813
Adv. volume* 268,179,517 4,575,755
Decl. volume* 522,898,581 7,312,802
Issues traded
3,064
329
Advances
1,078
124
Declines
1,844
183
Unchanged
142
22
New highs
32
4
New lows
136
19
Closing tick
45
27
Closing Arms†
1.22
1.01
Block trades*
6,386
103
Percentage Losers
CREDIT MARKETS
Interest rate
24.94
Low
0.17 275.65 274.90
BX
33.8
-3.53
0.47
Williams Partners
498.46
0.03
After Hours
% chg
High
Blackstone Group
3449.61
0.04
Net chg
14,798.2 275.47
Cousins Properties
593.12
-0.98 -1.23
Last
Enterprise Pdts Partners EPD
4939.86
-0.25
Volume
(000)
Symbol
-0.3
-1.37
NYSE NYSE Amer.
Most-active issues in late trading
7.7
International Stock Indexes
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Thailand
Volume, Advancers, Decliners
503.24
Nasdaq PHLX
World
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
589.69
4803.23 -53.61 -1.10
PHLX§ Gold/Silver
PHLX§ Semiconductor
Cboe Volatility
-2.77
Late Trading
Australian dollar
.7798 1.2824 0.1
China yuan
.1582 6.3213 –2.8
Hong Kong dollar
.1275 7.8419 0.4
India rupee
.01538 65.013 1.8
Indonesia rupiah .0000726 13767 2.1
Japan yen
.009405 106.33 –5.7
Kazakhstan tenge .003108 321.80 –3.3
Macau pataca
.1238 8.0746 0.4
Malaysia ringgit
.2555 3.9133 –3.6
New Zealand dollar
.7276 1.3744 –2.5
Pakistan rupee
.00904 110.600 –0.05
Philippines peso
.0192 52.145 4.4
Singapore dollar
.7613 1.3136 –1.8
South Korea won .0009348 1069.77 0.2
Sri Lanka rupee
.0064086 156.04 1.7
Taiwan dollar
.03431 29.143 –1.8
Thailand baht
.03205 31.200 –4.3
Commodities
22770
0.3
.04845 20.639
.1652 6.0532
1.2306 .8126
.003952 253.04
.010011 99.89
.1296 7.7141
.2921 3.4241
.01741 57.441
.1223 8.1788
1.0511 .9514
.2567 3.8956
.0384 26.0566
1.3936 .7176
–3.0
–2.4
–2.5
–2.3
–3.5
–6.0
–1.6
–0.4
–0.1
–2.4
2.7
–7.4
–3.0
Europe
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6521 .3771 –0.01
.0568 17.6110 –0.9
.2897 3.4522 –0.8
3.3348 .2999 –0.5
2.5973 .3850 0.02
.2747 3.641 –0.2
.2666 3.7504 unch
.0840 11.8998 –3.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 83.85
Thursday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
627.71
-2.17
193.89
61.19
2.681
1316.80
-0.60
0.23
-0.050
-7.60
0.31 0.37 –2.47
Sources: Tullett Prebon, WSJ Market Data Group
-0.34
% Chg
YTD
% chg
645.87
532.01
11.58
0.37
-0.31 200.52
66.14
0.38
3.63
-1.83
-0.57 1362.40
166.50
42.53
2.55
1208.60
5.35
25.52
-7.62
7.36
0.01
1.27
-9.21
0.80
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
.
THE WALL STREET JOURNAL.
B8 | Friday, March 16, 2018
COMMODITIES
Futures Contracts
Contract
High hilo
Low
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1315
3.1445
3.0920
3.1110 –0.0290
March
May
3.1495
3.1660
3.1075
3.1275 –0.0310
Gold (CMX)-100 troy oz.; $ per troy oz.
April
1324.70 1328.10
1314.90 1317.80 –7.80
June
1330.70 1333.80
1320.70 1323.50 –7.90
Aug
1336.00 1339.00
1326.90 1329.40 –7.90
Oct
1336.60 1336.60
1335.20 1335.20 –7.80
Dec
1348.40 1350.80
1338.40 1341.30 –7.90
Dec'19
1381.70 1381.70
1381.70 1380.60 –8.00
Palladium (NYM) - 50 troy oz.; $ per troy oz.
985.45
989.65
976.00
981.00 –3.75
June
Sept
983.70
983.95
972.75
976.40 –3.50
Platinum (NYM)-50 troy oz.; $ per troy oz.
961.90
965.80
953.80
956.90 –4.60
April
July
966.80
970.30
958.90
962.10 –4.20
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.485
16.485
16.305
16.353 –0.114
March
May
16.530
16.580
16.370
16.422 –0.115
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
60.95
61.54
60.82
61.19
0.23
April
May
60.99
61.60
60.86
61.25
0.23
June
60.89
61.45
60.74
61.13
0.22
July
60.62
61.14
60.48
60.85
0.19
Sept
59.98
60.30
59.73
60.04
0.15
Dec
58.73
59.13
58.53
58.88
0.09
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8860
1.8979
1.8811
1.8929 .0058
April
May
1.8902
1.9025
1.8857
1.8977 .0059
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.9214
1.9371
1.9111
1.9248 .0005
April
May
1.9309
1.9448
1.9200
1.9345 .0015
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.742
2.750
2.664
2.681 –.050
April
May
2.767
2.775
2.696
2.712 –.047
June
2.817
2.824
2.751
2.765 –.044
July
2.861
2.871
2.802
2.817 –.042
Sept
2.864
2.869
2.803
2.819 –.039
Oct
2.877
2.880
2.813
2.831 –.039
Settle
Open
interest
Chg
Agriculture Futures
Open
interest
Corn (CBT)-5,000 bu.; cents per bu.
2,016
142,427
May
July
388.25
396.00
May
July
256.00
260.25
May
July
1031.00
1042.00
390.75
398.25
385.50
393.25
386.75
394.50
–2.00 711,445
–2.25 487,730
248.50
253.50
251.00
256.00
–4.75
–3.25
Oats (CBT)-5,000 bu.; cents per bu.
255,302
182,659
40,897
5,718
40,211
3,349
257.00
260.25
Soybeans (CBT)-5,000 bu.; cents per bu.
1046.25
1056.75
1027.00
1038.25
1040.75
1051.25
Soybean Meal (CBT)-100 tons; $ per ton.
23,914
1,026
May
July
370.70
372.10
May
July
31.73
31.96
May
July
1233.00
1256.00
May
July
488.75
506.00
May
July
525.25
542.25
374.80
376.50
369.80
371.60
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
57,015
22,005
32.15
32.38
.10 212,515
.10 112,259
32.06
32.30
.35 241,958
.35 109,160
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
157
145,227
1225.00
1251.00
1241.00
1256.00
Wheat (CBT)-5,000 bu.; cents per bu.
144,426
460,013
333,845
124,146
142,884
240,939
493.25
510.50
476.00
493.25
513.00
529.75
623.00
628.25
629.25
635.25
5,952
1,220
513.50 –11.25 123,877
530.50 –11.25 74,351
Wheat (MPLS)-5,000 bu.; cents per bu.
May
July
7.00
1.00
478.75 –10.00 229,008
496.00 –10.25 128,446
Wheat (KC)-5,000 bu.; cents per bu.
531.25
548.00
8.50 386,097
8.25 211,882
371.00
372.60
31.64
31.88
1244.00
1257.50
4,308
839
615.25
621.75
615.50
622.25
–6.25
–6.00
32,048
10,554
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
69,283
94,873
March
May
141.900
143.350
April
June
123.075
113.250
April
June
66.400
78.000
March
May
515.70
483.20
142.675
144.025
t 140.050
140.975
Cattle-Live (CME)-40,000 lbs.; cents per lb.
78,351
134,375
123.825
113.950
121.125
111.500
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
166,852
300,346
83,079
127,804
84,445
129,154
66.825
79.375
t
140.625 –1.425
141.600 –2.025
5,511
15,343
121.850 –1.150 73,589
112.300 –.950 153,673
65.675
77.725
65.725 –1.150
79.175
.825
40,577
82,672
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
530.00
494.40
515.50
477.30
530.00
494.40
13.80
10.00
22
5,263
Cash Prices | WSJ.com/commodities
Thursday, March 15, 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.
Thursday
Energy
0.8255
0.9208
2.670
2.640
2.810
2.130
2.170
2.500
2.550
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
Metals
Thursday
16.5200
12127
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Other metals
LBMA Platinum Price PM
*964.0
Platinum,Engelhard industrial
959.0
Platinum,Engelhard fabricated
1059.0
Palladium,Engelhard industrial
991.0
Palladium,Engelhard fabricated
1091.0
Aluminum, LME, $ per metric ton
*2096.0
Copper,Comex spot
3.1110
Iron Ore, 62% Fe CFR China-s
71.5
Shredded Scrap, US Midwest-s,m
366
Steel, HRC USA, FOB Midwest Mill-s
853
Fibers and Textiles
Gold, per troy oz
1321.89
1421.03
1318.75
1463.81
*1324.95
*1323.55
1370.41
1383.59
1383.59
1596.75
1294.61
1383.59
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.4600
19.7520
16.4150
20.5190
£11.8600
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6200
0.8253
*92.35
n.a.
n.a.
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
Grains and Feeds
n.a.
101
3.5200
106.2
537.2
325
98
263
2.8100
25.50
8.2900
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
Thursday
375.00
9.9000
7.5300
4.7700
5.0350
5.5400
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
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
201.96
193.57
0.9396
2.2175
154.50
158.50
68.75
2752
1.2051
1.4033
1.9550
15.85
n.a.
63.69
n.a.
0.9167
n.a.
169.88
Fats and Oils
29.6500
0.2225
n.a.
0.3041
0.2600
n.a.
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
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 3/14
Source: WSJ Market Data Group
WSJ.com/commodities
Contract
High hilo
Low
Open
Settle
Open
interest
Chg
Milk (CME)-200,000 lbs., cents per lb.
14.25
14.30
14.25
14.30
.06
4,236
March
April
14.12
14.17
14.03
14.12
.07
3,490
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,557
2,571
2,509
2,536
–20 123,296
May
July
2,577
2,589
2,529
2,557
–20 70,985
Coffee (ICE-US)-37,500 lbs.; cents per lb.
120.00
120.10
119.85
117.65 –2.30
28
March
May
121.20
121.50
t 117.50
118.75 –2.30 138,678
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
12.84
12.87
12.56
12.74
–.02 424,739
May
July
13.05
13.08
t
12.80
12.95
–.02 211,487
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
24.75
24.75
t
24.75
24.62
–.15
3,203
May
July
25.28
25.28
25.28
25.15
–.13
2,682
Cotton (ICE-US)-50,000 lbs.; cents per lb.
83.59
83.86
82.65
83.53
.09 125,899
May
Dec
78.00
78.39
77.76
78.19
.17 70,252
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
139.05
139.20
138.15
138.80
–.60
9,349
May
July
139.05
139.30
138.65
139.00
–.40
1,774
Interest Rate Futures
March
June
146-050 146-050
144-270 145-080
145-210
144-200
145-260
144-260
–2.0
1,752
–2.0 821,326
March
June
121-030 121-090
120-170 120-230
121-000
120-125
121-030
120-160
–1.5 21,240
–1.5 3,387,679
March
June
114-140 114-175
114-055 114-092
114-117
114-022
114-135
114-042
–1.5 19,718
–1.7 3,325,309
Feb. index
level
Week
Latest ago
Chg From (%)
Jan. '18 Feb. '17
U.S. consumer price index
0.45
0.45
248.991
255.783
All items
Core
2.2
1.8
Britain
Australia
March
June
.9414
.9475
.9455
.9516
Week
ago
4.50 4.50 4.50 4.00
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
0.25
1.50
1.62
0.75
13 weeks
26 weeks
March
June
.7718
.7732
.7725
.7740
March
June
1.3969
1.4029
1.3990
1.4050
1.3923
1.3982
1.3933 –.0043 98,989
1.3992 –.0042 104,368
March
June
1.0589
1.0675
1.0602
1.0688
1.0505
1.0591
1.0509 –.0081
1.0594 –.0082
March
April
May
June
Sept
Dec
.7880
.7878
.7874
.7884
.7820
.7878
.7885
.7886
.7874
.7889
.7820
.7902
.7794
.7797
.7798
.7797
.7810
.7878
March
June
.05377
.05303
.05384
.05309
.05332
.05257
.05336 –.00043 63,549
.05262 –.00043 137,806
March
June
1.2370
1.2461
1.2386
1.2474
1.2302
1.2390
1.2305 –.0073 236,645
1.2394 –.0073 337,301
0.00
0.50
0.00
0.50
0.00
0.50
0.00
0.50
Effective rate
High
Low
Bid
Offer
1.4500
1.5625
1.4000
1.4000
1.4600
2.00
1.4500
1.6500
1.3800
1.4200
1.4400
2.00
1.50
1.4500
1.6500
1.4100
1.4300
1.4600
0.8400
1.0625
0.7000
0.8100
0.8200
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
1.650 1.550 1.650 0.695
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShEdgeMSCIUSAMom
iShFloatingRateBd
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazil
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
MTUM
FLOT
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
9.74
105.60
53.53
67.19
28.95
102.45
85.69
76.48
106.94
103.70
120.23
66.62
59.47
63.90
277.05
192.50
79.12
62.99
106.76
96.90
74.09
53.11
111.46
50.90
12.64
116.63
85.62
112.24
104.36
73.68
44.66
70.52
66.39
49.32
44.00
60.96
112.67
108.42
143.08
153.13
124.02
197.58
156.92
125.44
162.87
212.20
88.39
224.07
163.50
–5.07
–0.10
–0.70
–0.52
0.03
–0.26
–0.16
0.29
–0.06
...
–0.02
–0.06
–0.37
–0.19
–0.10
–0.37
–0.44
–0.14
0.01
–0.02
–0.15
–0.09
0.09
–0.10
–0.63
0.10
0.07
–0.08
...
–0.04
–2.28
–0.06
–0.06
–0.36
–0.02
0.20
–0.98
–0.02
–0.08
–0.14
–0.18
–0.67
–0.50
–0.35
–0.17
–0.35
–0.39
–0.30
–0.05
–9.7
7.0
–5.9
–7.0
3.7
1.4
3.6
1.1
–2.1
–0.8
–1.6
0.8
4.5
1.3
3.1
1.4
3.0
3.0
–2.4
–1.7
1.5
0.6
8.1
0.2
1.0
–4.1
–1.9
–3.3
–2.1
2.2
10.4
0.3
2.9
4.7
1.4
1.7
5.5
–2.1
6.2
3.0
–0.3
5.8
2.9
–0.2
3.0
2.0
–0.9
3.8
7.0
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS Div
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
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
WisdTrJapanHdg
IVE
PFF
SHV
TIP
SHY
IEF
IWP
MINT
QQQ
BKLN
JNK
GLD
SCHF
SCHB
SCHD
SCHX
DIA
MDY
SPY
SDY
XLK
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
DXJ
.7798
.7800
.7800
.7801
.7808
.7815
Mexican Peso (CME)-MXN 500,000; $ per MXN
–.0085
–.0085
–.0085
–.0086
–.0085
–.0085
86,342
65,443
35,843
32,225
57,116
863
282
62,118
522
314
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
137
136
49,985
97,578
March
June
2757.00
2756.70
2762.00
2767.00
2745.00
2746.00
2751.60
2755.60
1.90
1.70
76,601
26,947
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
March
June
2750.75
2754.75
2763.50
2767.25
2741.00
2745.00
2751.50
2755.50
1.75 1,065,064
1.50 2,609,150
March
June
March
June
1931.10
1933.90
1934.60
1938.20
1918.70
1921.90
1922.80
1926.70
March
June
7036.8
7060.8
7003.3
7027.3
7046.5
7070.5
March
June
1580.00
1589.40
1589.70
1593.10
1572.40
1575.00
1579.10
1582.50
–5.90
–5.90
21,370
7,495
March
June
1524.20
1529.80
1529.80
1533.90
1523.30
1522.40
–1.60
–2.00
288
21
.44
.45
16,309
20,639
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
106-185 106-185
106-090 106-100
106-162
106-072
106-167
106-077
–1.2 29,316
–1.5 1,878,190
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
March
April
98.503
98.335
98.505
98.335
March
June
94.328
94.078
March
April
March
June
Dec
Dec'19
t
t
98.500
98.325
98.503
98.330
–.002 113,235
–.005 411,816
94.375
94.188
94.219
94.000
94.266
94.063
–.016
–.016
8,992
26,774
98.1750
98.1225
98.1750
98.1225
98.1575
98.1100
98.1675 –.0025
98.1100 –.0125
1,499
4,096
97.8100
97.7000
97.4700
97.1500
97.8150
97.7100
97.4900
97.1750
t 97.7825
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
1 Month Libor (CME)-$3,000,000; pts of 100%
Eurodollar (CME)-$1,000,000; pts of 100%
97.6900
97.4650
97.1350
97.7950 –.0175 1,237,830
97.7000
… 1,751,758
97.4800 .0050 2,028,179
97.1450 –.0050 2,273,441
S&P 500 Index (CME)-$250 x index
Mini S&P 500 (CME)-$50 x index
Mini S&P Midcap 400 (CME)-$100 x index
Mini Nasdaq 100 (CME)-$20 x index
7076.8 s
7100.0 s
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
t 1523.20 1525.10
U.S. Dollar Index (ICE-US)-$1,000 x index
89.70
90.17
89.62
90.13
March
June
89.26
89.71
89.15
89.68
–7.10
–6.60
13,112
77,470
13.0 88,561
12.5 213,106
Source: SIX Financial Information
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
1907.15
-1.9
3.160 2.380 3.180
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
2722.24
2574.83
-2.7
3.780 3.030 3.780
U.S. Corporate
-1.7
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1956.53
-1.6
Mortgage-Backed
1919.99
-1.7
Ginnie Mae (GNMA) 3.340 2.630 3.400
1148.00
-1.5
Fannie mae (FNMA) 3.330 2.670 3.400
3.340 2.660 3.400
Intermediate
3.470 2.530 3.470
1768.27
-1.6
Freddie Mac (FHLMC) 3.340 2.680 3.410
Long term
4.450 3.990 4.620
514.99
-1.4
Muni Master
2.491 1.736 2.494
555.51
-2.2
Double-A-rated
3.250 2.470 3.250
357.70
-2.1
7-12 year
2.611 1.744 2.611
703.02
-2.6
Triple-B-rated
4.050 3.340 4.050
403.85
-2.0
12-22 year
2.887 2.213 2.899
392.01
-2.1
22-plus year
3.274 2.716 3.406
3744.57 -4.9
High Yield Bonds Merrill Lynch
414.85
-0.7
High Yield Constrained 6.277 5.373 6.394
Global Government J.P. Morgan†
Triple-C-rated
10.490 9.640 11.091
541.08
-0.5
2832.21
-1.0
High Yield 100
6.116 4.948 6.319
754.72
-0.02
377.21
-0.5
Global High Yield Constrained 5.614 4.934 5.681
372.34
305.82
-0.2
Europe High Yield Constrained 2.727 1.897 3.145
710.88
1.1
424.94
505.57
U.S Agency Bloomberg Barclays
Global Government 1.550 1.300 1.650
Canada
2.160 1.570 2.340
0.5
EMU§
1.145 0.956 1.337
0.1
France
0.900 0.690 1.190
Germany
0.590 0.210 0.740
Japan
0.370 0.340 0.460
-0.4
1623.33
-0.9
U.S Agency
2.600 1.690 2.610
289.72
1454.09
-0.5
10-20 years
2.480 1.490 2.480
558.64
-0.3
Netherlands
0.690 0.390 0.830
1.620 1.340 1.830
0.4
3295.73
-2.7
20-plus years
3.240 2.730 3.400
923.04
-0.8
U.K.
2418.84
-1.8
Yankee
3.440 2.610 3.440
791.50
-2.0
Emerging Markets ** 5.997 5.279 6.077
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
112.95
37.66
110.24
112.38
83.45
102.49
127.23
101.51
171.53
23.18
35.92
124.90
34.07
66.52
50.46
65.83
249.00
350.13
275.00
93.16
69.90
21.45
182.80
132.62
168.97
103.66
44.95
48.00
59.17
72.70
55.33
149.39
161.40
85.51
81.44
84.52
126.55
158.91
112.18
76.03
252.73
78.35
78.30
151.02
79.60
54.40
57.50
141.42
75.85
106.96
56.41
–0.15
0.11
–0.01
0.01
0.01
–0.04
–0.28
–0.02
–0.09
...
0.06
–0.64
–0.12
–0.14
0.04
–0.11
0.45
–0.39
–0.11
–0.35
0.06
–1.29
0.02
–0.32
–0.47
–0.11
–0.02
–0.39
0.02
0.07
–0.11
–0.15
–0.29
–0.11
–0.02
–0.06
–0.09
–0.35
–0.41
–0.03
–0.09
–0.01
–0.03
–0.38
0.01
0.02
–0.14
–0.13
–0.16
–0.02
0.07
–1.1
–1.1
...
–1.5
–0.5
–2.9
5.5
–0.0
10.1
0.6
–2.2
1.0
...
3.1
–1.4
3.2
0.7
1.4
3.1
–1.4
9.3
–7.7
11.0
–0.1
5.0
1.6
0.2
4.6
0.0
3.8
1.1
6.2
4.7
–0.1
–2.9
–3.3
3.2
2.7
0.5
–8.4
3.0
–0.9
–1.3
2.2
–2.4
0.1
1.2
3.0
2.1
0.6
–4.9
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
Australia 2
10
0.000
4.010 4.074 4.087 3.253
4.046 4.111 4.123 3.281
0.500
2.000
Week
Latest ago
0.100
52-Week
high
low
3.25
3.25
3.25
2.75
1.79
1.92
90 days
2.09
0.95
1.80820
2.17750
2.34175
2.60138
One month
Three month
Six month
One year
1.73957
2.07140
2.25925
2.53263
1.80820
2.17750
2.34175
2.60138
0.97611
1.14678
1.39072
1.69511
Euro Libor
-0.411
-0.379
-0.330
-0.254
One month
Three month
Six month
One year
-0.411
-0.379
-0.331
-0.255
-0.388
-0.354
-0.247
-0.110
-0.420
-0.387
-0.339
-0.263
Euro interbank offered rate (Euribor)
-0.371
-0.328
-0.271
-0.191
One month
Three month
Six month
One year
Latest
-0.371
-0.327
-0.272
-0.191
Value
Traded
-0.366
-0.325
-0.241
-0.106
-0.375
-0.332
-0.279
-0.194
52-Week
High
Low
DTCC GCF Repo Index
1.636
1.652
Treasury
MBS
57.400 1.836 0.752
87.590 1.852 0.757
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Mar
Treasury Apr
Treasury May
98.350 -0.015 2117 1.650
98.210 -0.010 869 1.790
98.200 -0.010 574 1.800
Weekly survey
Latest
Week ago Year ago
Freddie Mac
30-year fixed
15-year fixed
Five-year ARM
4.44
3.90
3.67
4.46
3.94
3.63
4.30
3.50
3.28
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.
1.972 t
2.716 t
l
l
l
0.100
1.400
l
l
Italy 2 -0.243 s
10 1.988 t
l
Japan 2 -0.141 s
10 0.045 t
l
Spain 2 -0.261 s
10 1.371 t
l
2.000
U.K. 2
4.250
10
Yield (%)
3 4 Previous
2
l
Germany 2 -0.585 t
10 0.579 t
1.400
Call money
1
l
l
0.050
Other short-term rates
0
France 2 -0.481 t
10 0.824 t
0.750
30 days
60 days
Latest(l)-2 -1
U.S. 2 2.283 s
10 2.827 s
0.000
Libor
Thursday, March 15, 2018
Closing Chg YTD
Symbol Price (%) (%)
.7659 –.0068
.7674 –.0068
24907
24924
2.250
Commercial paper (AA financial)
Treasury bill auction
4 weeks
.7653
.7668
24675
24693
4.500
30-year mortgage yields
Discount
2.00
t
t
British Pound (CME)-£62,500; $ per £
25059
25075
1.670 1.660 1.670 0.760
1.850 1.830 1.850 0.890
Fannie Mae
Federal funds
Prime rates
U.S.
Canada
Japan
0.50
1.50
U.S. government rates
52-Week
High
Low
.9413 –.0001 182,024
.9474 –.0001 109,311
24784
24805
2.250
2.750
Secondary market
1.57
1.60
U.S.
.9399
.9459
Canadian Dollar (CME)-CAD 100,000; $ per CAD
March
June
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
—52-WEEK—
High Low
Week
Latest ago
Overnight repurchase
International rates
Latest
—52-WEEK—
High Low
0.50
1.50
0.50
1.50
Open
interest
Global Government Bonds: Mapping Yields
March 15, 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.
Inflation
Chg
Currency Futures
Euro (CME)-€125,000; $ per €
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Settle
Japanese Yen (CME)-¥12,500,000; $ per 100¥
** EMBI Global Index
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Contract
High hilo
Low
Open
l
l
l
0.814 s
1.441 t
l
l
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
Year ago
2.266
2.818
2.189
2.910
1.299
2.495
1.996
2.014
1.890
2.750
2.905
2.926
-0.475
-0.426
0.835
1.004
-0.584
-0.564
-212.5
0.766
-0.826 -286.7
0.417
-224.9
-285.0
0.596
-222.2
-207.8
-0.251
-0.181
-0.026
-252.5
-251.7
-132.5
2.015
2.068
2.290
-83.9
-80.4
-20.5
-0.146
-0.155
-0.256
-242.4
-241.2
-155.5
-276.8
-240.0
-254.6
-146.5
-31.1
-11.2
-0.490 -276.3
1.033
-200.4
0.095 -278.3
-27.1
59.0
-6.8
43.1
-274.1
-178.9
-198.4
-146.2
0.051
0.066
-0.280
-0.382
-0.166
1.384
1.496
1.806
-145.7
-143.5
-68.9
0.795
0.715
0.045
-146.9
-147.1
-125.5
1.442
1.652
1.215
-138.6
-137.7
-128.0
-254.3
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Morgan Stanley
Monsanto
Time Warner
CBS
MS
MON
TWX
CBS
5.450
2.850
3.600
3.700
July 15, ’49
April 15, ’25
July 15, ’25
June 1, ’28
63
80
131
138
–21
–12
–12
–10
58
n.a.
116
136
57.22
117.20
96.88
51.04
0.40
–4.83
0.50
–0.45
XLIT
CME
ITC Holdings
Qualcomm
XL
CME
ITC
QCOM
4.450 March 31, ’25
3.000 Sept. 15, ’22
3.650 June 15, ’24
2.250 May 20, ’20
140
50
100
58
–10
–8
–7
–7
132
n.a.
n.a.
84
…
165.39
...
59.89
…
1.50
...
–0.38
…And spreads that widened the most
Transcontinental Gas Pipe Line
BNP Paribas S.A.
Lloyds Banking
Buckeye Partners
WPZ
BNP
LLOYDS
BPL
7.850
Feb. 1, ’26
7.625 March 30, ’49
4.582 Dec. 10, ’25
4.125
Dec. 1, ’27
155
170
182
198
25
23
21
17
128
n.a.
163
177
…
...
...
42.23
…
...
...
–5.65
American Tower
Transcanada Trust
E.I. du Pont de Nemours and Co
Boardwalk Pipelines
AMT
TRPCN
DD
BWP
2.800
June 1, ’20
5.300 March 15, ’77
2.200
May 1, ’20
5.950
June 1, ’26
89
233
69
204
16
16
14
13
n.a.
207
54
183
146.65
...
...
10.50
0.13
...
...
–7.08
High-yield issues with the biggest price increases…
Issuer
Symbol
Coupon (%)
Maturity
CSC Holdings
CenturyLink
CHS/Community Health Systems
Men's Wearhouse
CVC
CTL
CYH
TLRD
6.625 Oct. 15, ’25
7.650 March 15, ’42
6.250 March 31, ’23
7.000
July 1, ’22
Post Holdings
Rivers Pittsburgh Borrower
Level 3 Financing
Sprint
POST
RIVPIT
LVLT
S
5.625
6.125
5.375
7.125
Jan. 15, ’28
Aug. 15, ’21
Jan. 15, ’24
June 15, ’24
Bond Price as % of face value
Current
One-day change
104.150
97.250
92.500
101.000
96.875
96.500
99.050
98.836
2.88
1.50
10.15
9.25
1.03
1.00
0.89
0.82
Last week
Stock Performance
Close ($)
% chg
104.750
n.a.
88.125
99.500
...
16.97
…
…
...
–2.08
…
…
97.000
94.750
98.470
97.875
76.05
...
...
5.26
–4.71
...
...
–0.19
62.000
92.875
95.500
83.750
...
…
41.04
...
...
…
–0.63
...
73.740
100.500
n.a.
n.a.
2.92
...
38.89
...
–4.26
...
–4.73
...
…And with the biggest price decreases
PetSmart
CHS/Community Health Systems
L Brands
Iheartcommunications
PETM
CYH
LB
IHRT
Sanchez Energy
Enbridge
Tallgrass Energy Partners
LSC Communications
SN
ENBCN
TEP
LSCCOM
8.875
June 1, ’25
8.000 Nov. 15, ’19
5.250
Feb. 1, ’28
11.250 March 1, ’21
58.250
89.250
95.000
80.750
6.125 Jan. 15, ’23
6.250 March 1, ’78
5.500 Jan. 15, ’28
8.750 Oct. 15, ’23
72.000
98.950
98.500
102.722
–2.97
–2.78
–2.38
–1.75
–1.50
–1.30
–1.25
–1.03
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | B9
BIGGEST 1,000 STOCKS
WSJ.com/stocks
How to Read the Stock Tables
The following explanations apply to NYSE, NYSE
Arca, NYSE American and Nasdaq Stock Market
listed securities. Prices are composite quotations
that include primary market trades as well as
trades reported by Nasdaq BX (formerly Boston),
Chicago Stock Exchange, Cboe, NYSE National and
Nasdaq ISE.
The list comprises the 1,000 largest companies
based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent four
quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or being
reorganized under the Bankruptcy Code,
or securities assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Thursday, March 15, 2018
Stock
A B C
ABB
ABB 24.13
t ADT
ADT 8.93
AES
AES 10.69
Aflac
AFL 90.02
AGNC Invt
AGNC 18.74
ANGI Homesvcs ANGI 15.28
Ansys
ANSS 167.36
s ASML
ASML 214.44
AT&T
T
37.04
AbbottLabs ABT 62.59
AbbVie
ABBV 114.93
Abiomed
ABMD 294.57
Accenture
ACN 162.86
ActivisionBliz ATVI 73.38
AcuityBrands AYI 149.84
AdobeSystems ADBE 218.87
AdvanceAuto AAP 117.10
AdvMicroDevices AMD 11.46
AdvSemiEngg ASX
7.25
Aegon
AEG
6.89
AerCap
AER 50.30
Aetna
AET 174.59
AffiliatedMgrs AMG 190.46
AgilentTechs A
70.18
AgnicoEagle AEM 39.07
AirProducts APD 169.08
AkamaiTech AKAM 74.71
AlaskaAir
ALK 65.92
Albemarle
ALB 98.07
Alcoa
AA
46.93
AlexandriaRlEst ARE 127.08
AlexionPharm ALXN 126.83
Alibaba
BABA 199.06
AlignTech
ALGN 272.87
Alkermes
ALKS 61.63
Alleghany
Y
623.08
Allegion
ALLE 85.48
Allergan
AGN 166.12
AllianceData ADS 228.24
AlliantEnergy LNT 39.66
Allstate
ALL 96.81
AllyFinancial ALLY 27.47
AlnylamPharm ALNY 141.38
Alphabet C GOOG 1149.58
Alphabet A GOOGL 1150.61
Altaba
AABA 79.42
AlticeUSA
ATUS 19.76
Altria
MO 63.81
AlumofChina ACH 14.56
Amazon.com AMZN 1582.32
Ambev
ABEV 7.20
Amdocs
DOX 67.91
Amerco
UHAL 340.56
Ameren
AEE 54.77
AmericaMovil AMX 19.23
AmericaMovil A AMOV 19.18
AmerAirlines AAL 55.17
AEP
AEP 66.99
AmerExpress AXP 94.39
AmericanFin AFG 112.62
t AIG
AIG 54.66
AmerTowerREIT AMT 146.65
AmerWaterWorks AWK 81.47
Ameriprise AMP 155.39
AmerisourceBrgn ABC 97.36
Ametek
AME 77.96
Amgen
AMGN 189.75
Amphenol
APH 91.95
AnadarkoPetrol APC 57.91
AnalogDevices ADI 93.94
Andeavor
ANDV 97.24
t AndeavorLog ANDX 44.57
AB InBev
BUD 112.87
AnnalyCap
NLY 10.49
AnteroResources AR
20.24
Anthem
ANTM 230.00
Aon
AON 144.97
Apache
APA 35.34
ApartmtInv AIV 40.26
ApolloGlbMgmt APO 32.37
Apple
AAPL 178.65
ApplMaterials AMAT 60.28
Aptiv
APTV 88.96
AquaAmerica WTR 33.47
Aramark
ARMK 41.00
ArcelorMittal MT
32.50
t ArchCapital ACGL 84.27
ArcherDaniels ADM 43.26
Arconic
ARNC 24.24
AristaNetworks ANET 295.90
ArrowElec
ARW 80.64
AspenTech AZPN 80.95
AstraZeneca AZN 33.82
AthenaHealth ATHN 144.83
Athene
ATH 49.99
Atlassian
TEAM 59.56
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Net
Sym Close Chg
Stock
G H I
D E F
Thursday, March 15, 2018
52-Wk %
Sym Hi/Lo Chg Stock
Highs
26.24 0.5
215.48 1.4
13.41 18.8
9.33 6.7
17.03 4.3
30.70 -2.8
39.29 17.9
11.80 0.9
18.42 2.2
27.53 -2.7
30.83 1.6
3.97 -0.5
18.49 3.5
66.56 -11.5
2.21 15.6
28.69 5.5
37.15 3.9
30.00 3.9
21.35 1.7
109.00 3.3
13.33 3.2
130.00 0.7
10.16 0.9
30.65 2.6
27.96 -3.8
95.75 -2.1
10.23 -1.7
52-Wk %
Sym Hi/Lo Chg Stock
CasaSystems CASA
Cerus
CERS
CharterFin
CHFN
Chemed
CHE
ChemoCentryx CCXI
ChoiceHotels CHH
Civeo
CVEO
CoastwayBancorp CWAY
CognizantTech CTSH
ColonyBankcorp CBAN
ConsldWater CWCO
CornerstoneOnDem CSOD
CovenantTranspt CVTI
Cree
CREE
CryoPortWt
CYRXW
Cutera
CUTR
Daxor
DXR
DigitalTurbine APPS
EastsideDistilWt EASTW
EdwardsLife
EW
EnphaseEnergy ENPH
FireEye
FEYE
FirstCapital
FCAP
1stConstBncp FCCY
FirsthandTechVal SVVC
Fiserv
FISV
FlexPharma
FLKS
Fortinet
FTNT
G1Therapeutics GTHX
Gaia
GAIA
34.00
5.48
21.44
285.79
14.47
85.35
4.11
27.60
85.10
15.65
14.90
46.19
32.38
45.43
7.38
54.70
21.66
2.59
2.49
142.10
4.48
18.72
42.00
20.38
12.64
148.71
8.98
54.97
39.48
17.15
7.7
-3.3
2.1
-0.3
-1.2
0.4
7.1
20.9
1.4
1.3
6.9
-3.2
19.1
-0.5
5.1
2.5
71.2
4.1
-1.6
0.1
3.8
3.8
13.2
1.9
...
0.1
27.3
-0.7
-5.8
4.6
Mutual Funds
52-Wk %
Sym Hi/Lo Chg
Geron
GERN
GlobalPayments GPN
GordonPointeUn GPAQU
GordonPointeWt GPAQW
GriffinIndlRealty GRIF
HMG Court
HMG
HailiangEduc
HLG
Histogenics
HSGX
HorizonBancorp HBNC
IAC/InterActive IAC
I-AM Capital
IAM
ICF Intl
ICFI
ImageSensingSys ISNS
IntegerHoldings ITGR
Intra-Cellular
ITCI
JuniperPharm JNP
KinsaleCapital KNSL
MI Acqns Wt MACQW
MSCI
MSCI
MastechDigital MHH
McGrathRentCorp MGRC
MellanoxTech MLNX
NRG Energy
NRG
Noodles
NDLS
Nutanix
NTNX
Orgenesis
ORGS
Penumbra
PEN
PlayAGS
AGS
ProfireEnergy PFIE
Progressive
PGR
3.69
118.42
10.35
0.60
37.49
17.45
68.55
3.35
30.94
166.64
11.94
61.70
4.80
58.05
25.82
12.65
55.10
0.95
155.44
15.00
54.22
73.95
30.84
7.40
55.10
16.80
126.00
22.49
2.98
61.71
10.8
0.3
-0.1
5.2
-0.1
7.8
1.7
-4.6
1.1
2.4
1.7
0.8
44.3
0.1
-2.0
9.6
0.5
5.6
0.3
7.9
1.6
-0.3
1.9
12.2
-0.5
6.0
2.0
2.4
2.4
0.3
ProtoLabs
PRLB
PurpleInnovation PRPL
QAD A
QADA
RLJ Ent
RLJE
RingCentral
RNG
SareptaTherap SRPT
SecondSightWt EYESW
SempraEnerPfdA SREpA
SharpSpring
SHSP
ShotSpotter
SSTI
SodaStream
SODA
SoundFinBancorp SFBC
Square
SQ
Strats Allst GJT GJT
TenetHealthcare THC
TopBuild
BLD
US BancorpPfdA USBpA
UtahMedProducts UTMD
VeriSign
VRSN
WD-40
WDFC
WNS
WNS
WasteConnections WCN
WebsterFinlPfdF WBSpF
Williams-Sonoma WSM
WillScotWt
WSCWW
XO Group
XOXO
Zillow C
Z
Zillow A
ZG
ADT
ADT
ARCDocumentSolns ARC
Adecoagro
AGRO
AlcentraCapital ABDC
AllianceResource ARLP
AmElecTch
AETI
AIG
AIG
AmerMidstreamPtrs AMID
Data provided by
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s
apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. rRedemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes
x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete
price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not
tracked. NS-Fund didn’t exist at start of period.
Thursday, March 15, 2018
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
American Century Inv
47.12
Ultra
American Funds Cl A
33.86
AmcpA p
41.00
AMutlA p
27.19
BalA p
12.60
BondA p
61.53
CapIBA p
52.74
CapWGrA
58.21
EupacA p
64.07
FdInvA p
53.35
GwthA p
10.25
HI TrA p
41.53
ICAA p
22.99
IncoA p
45.84
N PerA p
49.38
NEcoA p
69.56
NwWrldA
57.98
SmCpA p
TxExA p
12.78
46.16
WshA p
Baird Funds
AggBdInst
10.62
CorBdInst
10.97
BlackRock Funds A
-0.04
-0.09
-0.11
-0.02
-0.01
-0.19
-0.12
+0.02
-0.04
-0.08
-0.02
-0.18
-0.04
-0.06
-0.09
-0.10
-0.16
...
-0.06
-0.01
-0.01
19.93
GlblAlloc p
8.5 BlackRock Funds Inst
22.83
EqtyDivd
7.5 GlblAlloc
20.06
0.5 HiYldBd
7.69
0.5 StratIncOpptyIns 9.94
-1.9 Bridge Builder Trust
-1.3 CoreBond
NA
3.6 Dimensional Fds
3.5 5GlbFxdInc
10.80
3.0 EmgMktVa
32.37
7.7 EmMktCorEq 24.06
... IntlCoreEq
14.60
2.8 IntlVal
20.36
-0.9 IntSmCo
21.55
6.2 IntSmVa
22.84
10.6 US CoreEq1
23.44
3.9 US CoreEq2
22.04
3.9 US Small
36.38
-1.4 US SmCpVal 38.06
1.1 US TgdVal
24.96
39.45
USLgVa
-1.9 Dodge & Cox
-1.8 Balanced
108.21
14.07
GblStock
...
1.2 Income
...
... 1.3
-0.01 -0.3
-0.01 0.5
...
NA
... -0.6
-0.14 3.7
-0.03 3.6
... 0.4
... -0.6
-0.03 1.3
-0.05 -0.6
-0.05 2.9
-0.05 2.2
-0.13 1.2
-0.12 0.4
-0.11 0.3
-0.10 0.8
-0.16
-0.03
1.1
1.5
-0.3
2.3
-0.9
11.8
0.1
-1.3
13.8
0.2
4.1
6.2
0.5
-0.3
0.4
0.5
1.6
-1.1
0.9
2.5
1.9
-0.6
-0.7
0.6
1.1
2.5
-0.6
1.4
-0.8
-0.9
8.90 -12.5
2.08 -2.5
8.17 -1.2
6.15 -19.4
17.25 -0.3
1.20 -3.9
54.55 -0.5
10.81 -2.6
-1.1
1.3
2.5
NA
11.9
-6.0
3.2
3.2
3.2
3.0
0.3
3.2
3.2
3.2
-1.9
7.0
1.2
1.5
1.9
GoldmanSachs GS 266.61
t Goodyear
GT
28.03
Graco
GGG 46.38
Grainger
GWW 281.28
GreatPlainsEner GXP 30.27
Grifols
GRFS 21.41
GrubHub
GRUB 110.89
GpoAvalAcc AVAL 8.56
GpoFinGalicia GGAL 65.35
t GrupoTelevisa TV
15.93
Guidewire
GWRE 85.60
HCA Healthcare HCA 103.15
HCP
HCP 22.95
HDFC Bank HDB 99.85
HD Supply
HDS 38.23
HP
HPQ 23.48
HSBC
HSBC 49.25
Halliburton HAL 45.29
Hanesbrands HBI 19.43
HarleyDavidson HOG 43.42
Harris
HRS 158.18
HartfordFinl HIG 53.81
t Hasbro
HAS 88.15
Heico A
HEI.A 70.90
Heico
HEI
89.05
Helm&Payne HP
62.64
HenrySchein HSIC 67.99
Herbalife
HLF 97.55
Hershey
HSY 100.94
Hess
HES 48.86
HewlettPackard HPE 18.83
Hexcel
HXL 67.41
Hilton
HLT 81.89
HollyFrontier HFC 45.59
Hologic
HOLX 38.48
HomeDepot HD 178.07
HondaMotor HMC 34.73
Honeywell
HON 151.07
HormelFoods HRL 33.30
DR Horton
DHI 43.45
HostHotels HST 19.05
HowardHughes HHC 136.54
HuanengPower HNP 26.56
Hubbell
HUBB 124.97
Humana
HUM 271.09
JBHunt
JBHT 119.77
HuntingtonBcshs HBAN 16.04
HuntingIngalls HII 253.87
Huntsman
HUN 31.36
HyattHotels H
80.97
s IAC/InterActive IAC 166.03
ICICI Bank
IBN
9.39
IdexxLab
IDXX 203.37
IHSMarkit
INFO 48.91
ING Groep
ING 17.47
Invesco
IVZ
32.92
IPG Photonics IPGP 249.19
IQVIA
IQV 105.34
IRSA Prop
IRCP 44.05
IcahnEnterprises IEP
58.24
Icon
ICLR 121.49
IDEX
IEX 146.90
IllinoisToolWks ITW 170.18
Illumina
ILMN 251.61
t ImperialOil
IMO 26.14
Incyte
INCY 88.69
Infosys
INFY 18.30
Ingersoll-Rand IR
90.22
Ingredion
INGR 131.10
Intel
INTC 50.88
InteractiveBrkrs IBKR 70.67
ICE
ICE
74.26
InterContinentl IHG 63.45
IBM
IBM 159.61
IntlFlavors
IFF 139.03
IntlGameTech IGT
30.19
IntlPaper
IP
54.42
Interpublic
IPG
23.56
Intuit
INTU 177.93
IntuitiveSurgical ISRG 441.95
InvitatHomes INVH 22.63
IonisPharma IONS 52.18
IronMountain IRM 32.89
IsraelChemicals ICL
4.57
ItauUnibanco ITUB 15.67
J K L
AnadarkoPeteUn AEUA
AndeavorLog ANDX
AnteroMidstream AMGP
AnteroMidstream AM
AratanaTherap PETX
ArchCapital
ACGL
AscentCapital A ASCMA
AutoWeb
AUTO
AvadelPharm AVDL
Benefitfocus
BNFT
BlueknightEner BKEP
BlueknightEnPtrsA BKEPP
BoardwalkPipe BWP
BuckeyePtrs
BPL
CVS Health
CVS
CamberEnergy CEI
CedarRealty
CDR
Celgene Rt
CELGZ
ChinaTelecom CHA
ContraVirPharm CTRV
CooperT&R
CTB
Crawford B
CRD.B
CrossAmerPtrs CAPL
CushingRenFdRt SZCr
DDR PfdK
DDRpK
DISH Network DISH
DRDGOLD
DRD
DareBioscience DARE
Dave&Buster's PLAY
DelTaco
TACO
DelTacoWt
TACOW
Digirad
DRAD
DigitalRealtyPfH DLRpH
DominionEnerUn DCUD
DominionEner D
DominionEnerMid DM
DynagasLNG DLNG
EQT GP
EQGP
EQT Midstream EQM
Net YTD
NAV Chg % Ret Fund
Freedom2020 K
Freedom2025 K
Freedom2030 K
Freedom2035 K
Freedom2040 K
16.75
14.59
18.39
15.59
10.96
-0.02
-0.01
-0.02
-0.02
-0.01
1.2
1.5
2.0
2.5
2.5
24.34
Balanc
95.55
BluCh
Contra
131.54
131.48
ContraK
10.29
CpInc r
40.29
DivIntl
199.55
GroCo
GrowCoK
199.55
7.74
InvGB
10.99
InvGrBd
55.08
LowP r
110.18
MagIn
OTC
120.98
Puritn
23.98
SrsEmrgMkt 22.61
SrsGroCoRetail 18.64
16.59
SrsIntlGrw
SrsIntlVal
10.71
TotalBond
10.42
-0.02
+0.02
-0.02
-0.02
-0.01
+0.04
-0.11
-0.11
...
...
-0.03
-0.14
-0.16
-0.02
-0.03
-0.01
...
...
...
2.6
8.9
9.1
9.1
0.6
0.7
11.7
11.7
-1.8
-1.8
1.0
5.4
10.1
2.4
5.6
12.1
2.7
0.2
-1.6
-0.08
0.1
-0.09
1.9
First Eagle Funds
59.11
FPA Funds
FPACres
35.34
FrankTemp/Frank Adv
2.30
IncomeAdv
FrankTemp/Franklin A
CA TF A p
7.27
IncomeA p
2.32
61.29
RisDv A p
FrankTemp/Franklin C
2.35
Income C t
FrankTemp/Temp A
GlBond A p
11.84
... -1.3
... -2.1
... -1.3
-0.07 0.2
... -1.4
-0.03
0.3
30.74 -1.0
42.17 -4.0
16.52 -1.5
25.11 -2.2
3.67 6.1
83.86 -0.2
4.76 -6.3
3.42 -3.4
6.76 -3.6
21.75 -5.0
4.55 -2.1
7.19 0.3
10.17 -7.1
39.29 -5.7
65.66 -1.8
0.89 -9.8
3.65 -3.7
0.36 -33.9
42.49 -0.4
0.21 -4.6
29.70 -0.5
8.12 -0.5
20.90 -2.2
0.34 -8.2
22.35 -0.7
39.92 -1.0
2.65 -1.3
1.00 -5.7
43.54 -0.4
10.95 -10.8
2.37 -23.3
1.85 -3.9
26.00 -0.3
48.01 -1.7
70.91 -3.1
22.70 -5.3
10.00 -1.2
21.87 -4.1
59.03 -4.4
Growth A p
Net
Sym Close Chg
Stock
Stock
Net
Sym Close Chg
LB
41.04 -0.26 NewsCorp A NWSA 16.42
2.18 L Brands
LPL 13.07 0.01 NewsCorp B NWS 16.75
-0.01 LG Display
LN
40.11 -0.26 NextEraEnergy NEE 158.14
-0.02 LINE
NKE 66.39
LKQ 39.05 0.02 Nike
1.07 LKQ
NI
23.39
LLL 203.75 -0.12 NiSource
-0.09 L3 Tech
LH 173.83 -0.52 NobleEnergy NBL 29.33
-0.05 LabCpAm
NOK
5.76
0.11 LamResearch LRCX 223.08 0.44 Nokia
LAMR 66.48 -0.02 NomuraHoldings NMR 6.01
-0.10 LamarAdv
NDSN 139.02
-0.05 LambWeston LW
55.62 -0.46 Nordson
JWN 48.92
-0.48 LasVegasSands LVS
74.77 0.87 Nordstrom
-1.12 Lazard
LAZ 55.39 -0.55 NorfolkSouthern NSC 137.63
1.22 Lear
LEA 189.17 0.67 NorthernTrust NTRS 106.10
... Leggett&Platt LEG 46.01 -1.40 NorthropGrum NOC 340.82
1.34 Leidos
LDOS 68.02 -0.51 NorwegCruise NCLH 55.34
NVS 81.81
0.22 Lennar B
LEN.B 47.07 -0.77 Novartis
... Lennar A
LEN 58.89 -1.01 NovoNordisk NVO 50.39
NUE 66.18
0.52 LennoxIntl
LII
211.44 -0.76 Nucor
NTNX 54.41
-0.95 LeucadiaNatl LUK 24.41 0.11 s Nutanix
NTR 50.00
0.05 LibertyBroadbandC LBRDK 87.94 -0.74 Nutrien
NVDA 249.34
-0.04 LibertyBroadbandA LBRDA 87.24 -0.62 NVIDIA
0.60 LibertyGlobal C LBTYK 31.80 0.09
-0.06 LibertyGlobal A LBTYA 33.17 0.21
-0.38 LibertyQVC A QRTEA 27.15 -0.35 OGE Energy OGE 31.62
-0.45 LibertyFormOne A FWONA 31.01 0.85 ONEOK
OKE 56.64
-1.02 LibertyFormOne C FWONK 32.61 1.08 OReillyAuto ORLY 248.84
-1.97 LibertyBraves A BATRA 23.01 -0.24 OccidentalPetrol OXY 63.91
-0.31 LibertyBraves C BATRK 23.11 -0.25 OldDomFreight ODFL 147.12
-1.15 LibertySirius A LSXMA 42.25 -0.46 Omnicom
OMC 73.88
-0.74 LibertySirius C LSXMK 42.09 -0.42 ON Semi
ON
25.76
0.29 LibertyProperty LPT 40.08 0.02 OpenText
OTEX 36.24
-0.02 EliLilly
LLY
78.75 0.26 Oracle
ORCL 52.37
0.36 LincolnElectric LECO 92.21 -0.18 Orange
ORAN 17.23
0.65 LincolnNational LNC 76.49 0.22 OrbitalATK
OA 131.67
-0.68 LionsGate A LGF.A 28.48 -0.59 Orix
IX
88.95
0.04 LionsGate B LGF.B 26.66 -0.53 Oshkosh
OSK 78.09
0.66 LiveNationEnt LYV 45.35 0.54 OwensCorning OC
81.26
0.13 LloydsBanking LYG
3.77 -0.03 PG&E
PCG 44.17
0.65 LockheedMartin LMT 333.23 1.55 PLDT
PHI
28.97
-0.42 Loews
L
50.94 -0.02 PNC Fin
PNC 157.87
-0.94 LogitechIntl LOGI 39.93 0.70 POSCO
PKX 79.53
0.13 LogMeIn
LOGM 127.95 0.80 PPG Ind
PPG 114.28
0.49 Lowe's
LOW 85.54 -0.84 PPL
PPL 27.84
0.06 lululemon
LULU 79.61 -1.14 PTC
PTC 80.17
-1.36 LyondellBasell LYB 107.47 -1.28 PVH
PVH 142.38
0.59
Paccar
PCAR 66.82
-0.04
PackagingCpAm PKG 117.59
-0.01
M&T Bank
MTB 190.33 0.02 PacWestBancorp PACW 52.32
-1.64
MGM Resorts MGM 35.68 -0.01 PagSeguroDig PAGS 35.19
-0.12
MKS Instrum MKSI 123.25
... PaloAltoNtwks PANW 189.01
0.02
MPLX
MPLX 33.83 -0.88 ParkerHannifin PH 180.08
3.84
26.15
s MSCI
MSCI 154.95 0.52 ParsleyEnergy PE
-0.01
PAYX 66.40
Macerich
MAC 59.11 -0.49 Paychex
-0.21
Macy's
M
28.80 -0.43 PaycomSoftware PAYC 109.82
0.07
PYPL 82.57
MadisonSquGarden MSG 247.35 -0.46 PayPal
0.05
PSO 10.61
t MagellanMid MMP 61.25 -2.46 Pearson
-0.35
MagnaIntl
MGA 56.53 3.25 PembinaPipeline PBA 31.16
-4.09
Pentair
PNR 72.13
Manpower
MAN 120.82 0.21
0.50
ManulifeFin MFC 18.67 0.01 People'sUtdFin PBCT 19.77
-0.29
PepsiCo
PEP 111.99
MarathonOil MRO 14.91 0.04
0.25
77.60
MarathonPetrol MPC 68.63 -0.73 PerkinElmer PKI
-0.23
PRGO 84.45
Markel
MKL 1139.36 -2.91 Perrigo
0.01
PetroChina
PTR
68.25
MarketAxess MKTX 224.09 0.52
0.84
Marriott
MAR 141.73 0.30 PetroleoBrasil PBR 14.07
-0.18
Marsh&McLen MMC 83.86 0.09 PetroleoBrasilA PBR.A 12.96
-0.26
PFE 36.58
MartinMarietta MLM 205.45 -1.28 Pfizer
-3.57
MarvellTech MRVL 23.19 -0.21 PhilipMorris PM 104.99
-0.08
Phillips66
PSX 94.46
Masco
MAS 41.61 0.04
1.90
Mastercard MA 180.95 0.83 PilgrimPride PPC 24.85
-1.24
55.16
MatchGroup MTCH 46.71 -0.08 PinnacleFoods PF
-0.98
MaximIntProducts MXIM 62.37 0.36 PinnacleWest PNW 77.05
-1.17
McCormick MKC 108.97 -1.59 PioneerNatRscs PXD 166.57
-0.05
McDonalds MCD 161.61 3.37 PlainsAllAmPipe PAA 21.51
-0.10
PAGP 21.82
McKesson
MCK 153.96 -1.48 PlainsGP
1.49
Medtronic
MDT 82.03 -0.27 PolarisIndustries PII 117.79
-0.26
Praxair
PX
155.67
MelcoResorts MLCO 27.84 0.40
-0.55
MercadoLibre MELI 387.11 -17.86 PrincipalFin PFG 61.97
-0.33
78.67
Merck
MRK 55.25 0.45 Procter&Gamble PG
0.12
MetLife
MET 46.96 0.05 s Progressive PGR 61.58
0.64
PLD 63.44
MettlerToledo MTD 613.83 7.70 Prologis
1.18
PFPT 120.01
MichaelKors KORS 60.84 -0.26 Proofpoint
0.02
t MicroFocus MFGP 26.75 -0.84 PrudentialFin PRU 108.49
-1.39
PUK 53.95
MicrochipTech MCHP 97.53 0.28 Prudential
-0.09
MicronTech MU
58.84 -0.94 PublicServiceEnt PEG 48.65
...
Microsemi
MSCC 66.25 0.01 PublicStorage PSA 195.17
-0.12
Microsoft
MSFT 94.18 0.33 PulteGroup PHM 28.97
QGEN 33.60
MidAmApt MAA 90.85 0.47 Qiagen
QRVO 79.00
Middleby
MIDD 128.97 -2.06 Qorvo
Qualcomm
QCOM 59.89
0.85 MitsubishiUFJ MTU
6.82 -0.01
DGX 104.72
0.29 MizuhoFin
MFG 3.70
... QuestDiag
... MobileTeleSys MBT 11.98 -0.17
0.16 MohawkInds MHK 246.40 -2.49
-0.05 MolsonCoors B TAP 81.41 0.31 RELX
RENX 20.72
-0.19 Momo
MOMO 37.85 0.58 RELX
RELX 20.98
-2.04 Mondelez
MDLZ 43.39 -0.49 RPM
RPM 50.39
-0.08 Monsanto
MON 117.20 -5.95 RSP Permian RSPP 38.80
0.74 MonsterBev MNST 58.19 -0.54 RalphLauren RL
108.44
-0.17 Moody's
MCO 166.48 -0.21 RandgoldRscs GOLD 82.96
0.80 MorganStanley MS
57.22 0.23 RaymondJames RJF
95.42
0.03 Mosaic
MOS 26.39 -0.71 Raytheon
RTN 208.58
-0.07 MotorolaSol MSI 108.80 -0.15 RealtyIncome O
51.14
-0.17 Mylan
MYL 41.67 -0.35 RedHat
RHT 154.43
-0.36 NICE
NICE 97.05 0.75 RegencyCtrs REG 58.26
0.37 s NRG Energy NRG 30.77 0.57 RegenPharm REGN 334.93
-0.05 NTTDoCoMo DCM 25.92 0.07 RegionsFin
RF
19.37
-0.39 NVR
NVR 3027.24 -27.50 ReinsGrp
RGA 160.15
-2.01 NXP Semi
NXPI 121.88 -0.42 RelianceSteel RS
89.88
-0.01 Nasdaq
NDAQ 84.08 0.09 RepublicSvcs RSG 68.57
-0.20 NationalGrid NGG 54.22 -0.65 ResMed
RMD 98.11
0.42 NatlInstruments NATI 52.30 0.35 RestaurantBrands QSR 57.43
-0.14 NatlOilwell
NOV 36.26 -1.08 RioTinto
RIO 52.60
-0.15 NatlRetailProp NNN 38.24 -0.28 RobertHalf
RHI 58.72
-0.11 NektarTherap NKTR 102.01 -2.50 Rockwell
ROK 181.76
0.46 NetApp
NTAP 63.67 -0.88 RockwellCollins COL 135.50
-0.76 Netease
NTES 325.58 11.41 RogersComm B RCI
45.02
0.09 Netflix
NFLX 321.09 -0.46 Rollins
ROL 51.33
-0.21 Neurocrine
ROP 282.86
NBIX 91.73 -0.57 RoperTech
-1.12 NewOrientalEduc EDU 93.78 1.97 RossStores ROST 76.82
78.30
0.19 NY CmntyBcp NYCB 14.17 0.01 RoyalBkCanada RY
7.29
0.12 NewellBrands NWL 28.89 0.46 RoyalBkScotland RBS
-0.54 NewmontMin NEM 37.31 -0.88 RoyalCaribbean RCL 124.65
O P Q
M N
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
0.16 -18.0
1.48 -5.7
13.09 -3.9
10.02 -15.6
10.33 -17.3
30.63 -4.9
12.80 -4.1
15.06 -6.3
14.25 -1.6
13.30 -4.1
23.10 -2.7
5.00 -19.8
25.15 1.0
16.23 -11.2
3.50 -0.8
2.64 -7.6
18.84 -3.5
9.61 -4.5
0.74 -4.9
17.31 -0.7
27.82 ...
15.80 -0.3
15.92 -2.9
87.30 -0.4
32.20 -6.4
16.43 -0.6
27.50 -3.9
7.51 -11.4
4.81 -20.4
26.03 -1.0
3.22 -11.5
15.07 -0.7
31.04 0.4
EV Energy
EVEP
EclipseResources ECR
EnableMidstream ENBL
EnbridgeEnergy EEQ
EnbridgeEnPtrs EEP
Enbridge
ENB
EnergyTransferEq ETE
EnergyTransfer ETP
EnLinkMid
ENLC
EnLinkMidPtrs ENLK
EnterpriseProd EPD
Entravision
EVC
EnvivaPartners EVA
FivePrimeTherap FPRX
ForesightEnergy FELP
Fred's
FRED
GenesisEnergy GEL
GeospaceTech GEOS
Globalstar
GSAT
GolarLNGPartners GMLP
Goodyear
GT
GreenlightCapRe GLRE
GrupoTelevisa TV
Hasbro
HAS
Hawkins
HWKN
HoeghLNG Ptrs HMLP
HollyEnergy
HEP
IMPAC Mortgage IMH
iFresh
IFMK
ImperialOil
IMO
IntegratedMedia IMTE
KinderMorgan KMI
KinderMorganPfdA KMIpA
Net
Sym Close Chg
Stock
RoyalDutchA RDS.A 61.89
RoyalDutchB RDS.B 63.00
Ryanair
RYAAY 123.79
SAP
SAP 108.49
S&P Global SPGI 192.71
SBA Comm SBAC 169.80
SEI Investments SEIC 75.53
Sina
SINA 118.56
SINOPEC
SHI
61.34
SK Telecom SKM 24.23
SLGreenRealty SLG 98.38
SS&C Tech SSNC 52.08
SVB Fin
SIVB 259.77
Sabre
SABR 22.03
SageTherap SAGE 174.05
Salesforce.com CRM 127.22
Sanofi
SNY 40.55
SantanderCons SC
16.77
Sasol
SSL 33.54
Schlumberger SLB 65.35
SchwabC
SCHW 55.59
Seagate
STX 59.57
SEE 44.05
-0.17 SealedAir
-0.52 SeattleGenetics SGEN 57.68
6.99
-0.30 SemicondctrMfg SMI
-0.13 SempraEnergy SRE 112.20
SensataTech
ST
52.87
1.17
38.67
-0.08 ServiceCorp SCI
0.02 ServiceMaster SERV 50.25
ServiceNow
NOW
173.83
-0.22
0.05 t ShawComm B SJR 19.05
-0.16 SherwinWilliams SHW 410.27
SHG 42.01
-0.34 ShinhanFin
SHPG 131.78
0.19 Shire
Shopify
SHOP 147.41
-0.49
-0.68 SignatureBank SBNY 154.46
SimonProperty
SPG 156.60
...
SIRI
6.40
-0.18 SiriusXM
-0.22 SkechersUSA SKX 40.11
Skyworks
SWKS
111.29
-0.21
AOS 65.24
-0.76 SmithAO
-0.09 Smith&Nephew SNN 37.66
Smucker
SJM 124.85
0.48
SNAP 17.20
-1.29 Snap
SnapOn
SNA 152.14
0.47
-0.93 SOQUIMICH SQM 48.81
SNE 51.34
0.16 Sony
SO
43.93
-0.29 Southern
SCCO 54.50
0.56 SoCopper
0.62 SouthwestAir LUV 59.94
-0.69 t SpectraEnerPtrs SEP 35.49
0.51 SpiritAeroSys SPR 86.40
SPLK 108.04
-1.43 Splunk
S
5.26
-0.74 Sprint
SQ
54.84
... s Square
StanleyBlackDck
SWK
157.81
-0.51
SBUX 59.37
1.49 Starbucks
-0.05 StateStreet STT 105.90
STO 23.01
-0.62 Statoil
0.51 SteelDynamics STLD 46.43
-1.33 STMicroelec STM 24.35
SYK 166.45
-0.17 Stryker
-0.41 SumitomoMits SMFG 8.69
SunComms
SUI
89.81
-0.75
42.29
0.23 SunLifeFinancial SLF
SuncorEnergy
SU
32.32
-0.62
71.13
0.25 SunTrustBanks STI
SYMC 27.54
-0.92 Symantec
SynchronyFin
SYF
34.67
-1.42
SNPS 87.83
0.27 Synopsys
-2.47 SynovusFin SNV 52.14
SYY 59.38
-1.24 Sysco
0.09
0.10
0.13
0.19
0.08
-0.37
-0.06
-0.01
-0.20
-0.56
0.99
-0.39
0.72
-0.61
-0.43
0.10
0.18
-0.25
-0.45
0.60
-1.09
-1.08
-1.87
-0.08
-0.33
0.18
0.22
-0.50
0.44
-0.04
0.20
0.56
-0.49
-0.05
-3.22
-0.23
-0.24
R S
52-Wk %
Sym Hi/Lo Chg Stock
Fund
GlbA
Net
Sym Close Chg
Stock
JD.com
JD
44.94
JPMorganChase JPM 115.24
JackHenry
JKHY 125.01
JacobsEngg JEC 59.94
JamesHardie JHX 17.70
JanusHenderson JHG 35.31
JazzPharma JAZZ 148.70
JetBlue
JBLU 22.26
J&J
JNJ 133.06
JohnsonControls JCI
37.05
JonesLang
JLL 172.65
-0.06 JuniperNetworks JNPR 26.23
... KAR Auction KAR 55.68
KB
57.51
0.08 KB Fin
KKR 21.76
-0.59 KKR
-0.30 KLA Tencor KLAC 120.81
KT
13.48
-0.58 KT
-0.06 KSCitySouthern KSU 106.30
K
66.99
0.26 Kellogg
KEY 20.91
0.91 KeyCorp
0.09 KeysightTechs KEYS 53.38
-0.88 KilroyRealty KRC 70.96
0.16 KimberlyClark KMB 110.94
0.10 KimcoRealty KIM 14.44
-0.01 t KinderMorgan KMI 16.31
-0.13 Knight-Swift KNX 49.39
KSS 61.49
-0.18 Kohl's
0.06 KoninklijkePhil PHG 39.00
-1.02 KoreaElcPwr KEP 14.93
KHC 65.46
-0.19 t KraftHeinz
KR
23.63
0.34 Kroger
KYO 57.63
-0.13 Kyocera
-0.17 LATAMAirlines LTM 15.60
Fidelity Invest
Net YTD
NAV Chg % Ret
13.61 -0.01
46.91 -0.15
208.76 -0.35
DoubleLine Funds
NA
...
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 33.08 +0.01
Federated Instl
5.76 -0.02
StraValDivIS
Fidelity
96.43 -0.07
500IdxInst
500IdxInstPrem 96.43 -0.07
500IdxPrem 96.43 -0.07
ExtMktIdxPrem r 63.94 -0.28
IntlIdxPrem r 43.31 -0.01
SAIUSLgCpIndxFd 14.74 -0.01
78.79 -0.11
TMktIdxF r
TMktIdxPrem 78.79 -0.10
...
USBdIdxInstPrem 11.31
Fidelity Advisor I
NwInsghtI
33.55 -0.01
Fidelity Freedom
FF2020
16.77 -0.02
FF2025
14.61 -0.02
FF2030
18.41 -0.02
Intl Stk
0.3 Stock
124.28
13.90
50.35
5.16
68.60
84.37
1.66
103.75
5.63
23.97
92.01
36.00
55.54
20.60
24.98
81.74
920.00
95.00
126.50
134.40
46.69
74.59
25.64
56.37
1.74
22.37
59.99
59.73
Lows
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each.
Fund
-0.14
-1.09
-0.64
-0.67
-0.66
-0.03
4.24
1.35
-2.28
0.16
-0.22
-0.07
0.12
-1.11
-0.54
-0.26
0.15
0.02
-1.24
-0.08
-2.72
-0.42
-0.67
-0.17
-0.52
0.18
-0.24
-0.24
0.39
0.21
0.19
0.10
-0.94
1.15
0.19
-2.27
-1.63
-0.30
-0.15
-0.10
-0.26
-0.62
-1.11
0.03
-0.69
0.46
1.52
0.39
0.18
0.06
3.04
-0.97
-1.00
0.39
-0.12
0.04
-0.83
-0.20
-0.37
0.07
0.82
0.23
-1.62
-0.33
1.38
0.24
-0.77
0.49
0.54
0.16
-0.31
0.26
0.10
-0.05
2.94
-0.55
0.53
0.10
-0.22
-0.78
0.26
0.08
-1.12
-0.21
-0.24
-0.19
-0.84
0.05
-0.36
-0.24
0.49
-0.04
-0.43
-0.20
-0.25
-0.30
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.
ACI Worldwide ACIW
ASML
ASML
AdaptimmuneTher ADAP
AegleaBioTherap AGLE
AeroCentury
ACY
AllianceOne
AOI
AlliedMotionTech AMOT
Ameresco
AMRC
AmericoldRealty COLD
ApellisPharm APLS
Apptio
APTI
AptoseBiosci APTO
Aquantia
AQ
ArcadiaBiosci RKDA
ArQule
ARQL
Arsanis
ASNS
AxoGen
AXGN
Bandwidth
BAND
BluegreenVac BXG
BlueprintMed BPMC
BridgewaterBcshs BWB
BurlingtonStrs BURL
CMSevenStarUn CMSSU
CNB FinPA
CCNE
Cactus
WHD
CalavoGrowers CVGW
CambiumLearning ABCD
t
DigitalRealty DLR 105.33
DiscoverFinSvcs DFS 75.37
DiscovComm C DISCK 21.61
DiscovComm A DISCA 23.40
Disney
DIS 103.24
DolbyLab
DLB 67.73
DollarGeneral DG
93.44
DollarTree
DLTR 94.16
DominionEner D
71.24
Domino's
DPZ 226.82
Donaldson
DCI
45.01
DouglasEmmett DEI
37.32
Dover
DOV 99.12
DowDuPont DWDP 67.88
DrPepperSnap DPS 117.27
DukeEnergy DUK 76.74
DukeRealty DRE 25.85
ENI
E
34.07
EOG Rscs
EOG 98.65
EPAM Systems EPAM 121.75
EQT
EQT 49.73
E*TRADE
ETFC 56.74
EXACT Sci
EXAS 52.09
EastWestBncp EWBC 65.14
EastmanChem EMN 106.97
Eaton
ETN 80.27
EatonVance EV
56.51
eBay
EBAY 42.59
Ecolab
ECL 136.70
Ecopetrol
EC
17.88
EdisonInt
EIX
64.00
EdwardsLife EW 141.10
ElbitSystems ESLT 136.99
ElectronicArts EA 129.12
EmersonElec EMR 70.93
EnbridgeEnPtrs EEP 10.83
Enbridge
ENB 31.46
Encana
ECA 10.80
EnelAmericas ENIA 11.40
EnelChile
ENIC 6.24
EnelGenChile EOCC 28.16
EnergyTransferEq ETE 14.54
EnergyTransfer ETP 16.61
Entergy
ETR 77.53
EnterpriseProd EPD 24.94
Equifax
EFX 123.65
Equinix
EQIX 415.23
EquityLife
ELS 86.03
EquityResdntl EQR 59.72
Ericsson
ERIC 6.84
EssexProp
ESS 241.71
EsteeLauder EL 144.12
EverestRe
RE 259.37
EversourceEner ES
57.58
Exelixis
EXEL 24.75
Exelon
EXC 37.87
Expedia
EXPE 112.45
ExpeditorsIntl EXPD 63.70
ExpressScripts ESRX 76.33
ExtraSpaceSt EXR 86.23
ExxonMobil XOM 74.42
F5Networks FFIV 148.15
FMC
FMC 81.07
Facebook
FB 183.86
FactSet
FDS 212.69
Fastenal
FAST 57.61
FederalRealty FRT 117.17
FedEx
FDX 247.40
Ferrari
RACE 122.79
FiatChrysler FCAU 21.14
FibriaCelulose FBR 21.64
FidNatlFin
FNF 38.52
FidNatlInfo FIS 100.10
FifthThirdBncp FITB 33.57
58.com
WUBA 83.40
FirstAmerFin FAF 58.60
FirstData
FDC 16.52
FirstHorizonNatl FHN 19.89
FirstRepBank FRC 95.59
FirstSolar
FSLR 68.74
FirstEnergy FE
33.68
Fiserv
FISV 147.67
FleetCorTech FLT 206.78
Flex
FLEX 18.18
FlirSystems FLIR 50.41
Fluor
FLR 57.31
FomentoEconMex FMX 92.42
FordMotor
F
11.07
Fortinet
FTNT 54.18
Fortis
FTS 32.98
Fortive
FTV 78.10
FortBrandsHome FBHS 61.66
Franco-Nevada FNV 68.23
FranklinRscs BEN 38.66
FreeportMcM FCX 18.41
FreseniusMed FMS 50.76
AtmosEnergy ATO 81.47 0.13 CanNaturalRes CNQ 29.89 0.23
Autodesk
ADSK 136.72 0.53 CanPacRlwy CP 176.80 -0.24
Autohome
ATHM 88.11 1.06 Canon
CAJ 37.23 0.02
ALV 149.71 -0.69 CapitalOne COF 98.05 0.85
-0.09 Autoliv
ADP 116.48 0.38 CardinalHealth CAH 70.70 -1.34
-1.28 ADP
AZO 648.93 -0.37 Carlisle
CSL 105.20 -1.94
-0.01 AutoZone
AVB 163.67 0.20 Carlyle
CG
22.50 -0.25
-0.19 Avalonbay
Avangrid
AGR
49.92
0.35
CarMax
KMX 62.17 -0.63
-0.06
AveryDennison
AVY
114.15
-0.68
Carnival
CCL
66.73 -0.23
0.33
CUK 66.23 -0.33
0.41 AxaltaCoating AXTA 30.55 -0.61 Carnival
BB&T
BBT
54.61
-0.01
Caterpillar
CAT
154.57
2.03 s
2.91
BCE 43.15 -0.32 Cavium
CAVM 86.75 -0.44
0.01 BCE
BHPBilliton
BHP
45.21
0.05
CboeGlobalMkts CBOE 118.61 -0.68
-0.27
105.73 -0.34
-4.01 BHPBilliton BBL 40.18 -0.13 Celanese A CE
BOKF 99.87 0.01 Celgene
CELG 89.91 -1.70 t
-1.28 BOK Fin
BP
BP
39.03 0.16 Cemex
CX
7.13 -0.08 t
1.86
BRFS 7.66 -0.43 CenovusEnergy CVE
8.09 0.03
-0.84 BRF
BT
15.90 -0.12 Centene
CNC 105.24 1.68
0.97 BT Group
BWX
Tech
BWXT
63.37
-0.42
CenterPointEner
CNP
26.92
-0.13
0.43
BIDU 262.71 3.36 CentraisElBras EBR
6.88 -0.10
0.04 Baidu
BakerHughes
BHGE
29.89
-0.71
CenturyLink CTL 16.97 -0.36 t
0.10
Ball
BLL 40.97 0.03 Cerner
CERN 61.78 -0.26 t
-0.10
BancoBilbaoViz BBVA 8.01 -0.11 CharterComms CHTR 339.55 -1.41
0.08
BancodeChile
BCH
101.65 -0.52 CheckPoint
CHKP 104.57 -0.38 t
-0.46
BancoMacro BMA 109.00 -0.46 Chemours
CC
49.27 -0.41
-2.03
BcoSantChile BSAC 33.13 -0.06 CheniereEnergy LNG 53.64 -0.02
-3.00
BcoSantMex BSMX 7.04 -0.10 CheniereEnerPtrs CQP 29.30 -0.55
0.26
BancoSantander SAN
6.57 -0.05 CheniereEnHldgs CQH 27.89 -0.56
-0.73
BanColombia CIB
42.86 -0.09 Chevron
CVX 115.58 0.45
0.10
BankofAmerica BAC 32.10 -0.04 ChinaEastrnAir CEA 41.20 0.31
1.46
BankofMontreal BMO 75.53 -0.43 ChinaLifeIns LFC 14.75 0.05
0.25
BankNY Mellon BK
54.85 -0.02 ChinaLodging HTHT 134.70 2.58
-2.26
BkNovaScotia BNS 62.89 -0.35 ChinaMobile CHL 45.76 -0.03
0.36
BankofOzarks OZRK 51.51 0.16 ChinaPetrol SNP 81.81 -0.42
0.68
Barclays
BCS 11.66 0.01 ChinaSoAirlines ZNH 64.61 -0.08
4.15
BarrickGold ABX 12.21 -0.11 t ChinaTelecom CHA 42.67 -0.18
6.50
BaxterIntl
BAX 67.59 0.31 ChinaUnicom CHU 12.20
...
0.39
BectonDicknsn BDX 224.15 0.63 Chipotle
CMG 318.91 -0.75
0.13
BeiGene
BGNE 156.53 2.73 Chubb
CB 141.06 0.30
-4.23
Berkley
WRB 71.19 -0.14 ChunghwaTel CHT 37.08 0.02
0.12
BerkHathwy A BRK.A 311601945.60 Church&Dwight CHD 49.54 -0.30
-0.94
BerkHathwy B BRK.B 207.82 0.83 Cigna
CI 166.90 0.02
-2.09
BerryGlobal BERY 55.98 0.12 CimarexEnergy XEC 92.14 -1.40
0.12
BestBuy
BBY 68.99 -0.91 CincinnatiFin CINF 74.30 0.25
0.40
Bio-RadLab A BIO 268.58 -0.82 Cintas
CTAS 173.30 -0.31
-0.38 Biogen
BIIB 286.70 0.98
-0.45 BioMarinPharm BMRN 83.57 -2.38 CiscoSystems CSCO 45.33 0.05
Citigroup
C
73.34 -0.13
0.09 BlackKnight BKI
48.10 -0.85 CitizensFin
CFG 44.96 -0.17
1.72 BlackBerry
BB
13.25 0.45 CitrixSystems CTXS 95.48 0.22
2.22 BlackRock
BLK 557.93 -1.03 Clorox
CLX 127.14 -1.43
-0.10 Blackstone
BX
33.68 -0.30
KO
43.67 -0.11
-0.01 BlueBuffaloPet BUFF 39.80 -0.06 Coca-Cola
Coca-Cola Euro CCE 40.78 -0.43
0.10 bluebirdbio
BLUE 214.65 -5.55 Coca-Cola Femsa KOF 67.45 -1.92
-8.68 Boeing
BA 329.98 -0.28
CGNX 54.43 -0.39
-0.19 BookingHldgs BKNG 2187.77 -1.13 Cognex
s
0.04 BorgWarner BWA 50.68 0.09 CognizantTech CTSH 84.83 1.20
ColgatePalm
CL
69.56 -0.43
0.17 BostonProps BXP 125.91 0.32
Comcast A CMCSA 36.15 0.13
0.14 BostonSci
BSX 27.84 -0.17 Comerica
CMA
98.05 0.33
-0.10 Braskem
BAK 28.70 -0.28 CommerceBcshrs CBSH 61.14 0.55
0.04 BrightHorizons BFAM 100.10 0.11
CommScope COMM 40.47 -0.23
-0.11 BrighthouseFin BHF 52.51 -0.17
SABESP
SBS 11.47 -0.20 s
0.40 Bristol-Myers BMY 66.25 -0.38
ConagraBrands CAG 36.38 -1.08
-0.14 BritishAmTob BTI
58.57 -0.19 ConchoRscs CXO 148.26 -1.95
-0.37 Broadcom
AVGO 267.76 7.17 ConocoPhillips COP 54.03 0.07
-0.27 BroadridgeFinl BR 107.12 -0.69
ConEd
ED
76.58 0.61
0.19 BrookfieldMgt BAM 40.14 0.32
ConstBrands A STZ 226.89 -0.50
0.27 BrookfieldInfr BIP
40.50 -0.37 ContinentalRscs CLR 52.36 -0.36
-1.62 Brown&Brown BRO 52.54
... Cooper
COO 234.01 0.12 s
-1.22 Brown-Forman B BF.B 55.32 0.95
Copart
CPRT 50.30 -0.41
-0.10 Brown-Forman A BF.A 54.39 1.09
Corning
GLW 29.53 -0.01
-0.82 t BuckeyePtrs BPL 42.23 -2.53
CoStar
CSGP 363.59 -0.83
0.58 Bunge
BG
73.74 -0.50 Costco
COST 185.51 0.88
-1.01 s BurlingtonStrs BURL 128.05 0.89
Coty
COTY 18.57 -0.40
-0.15 CA
CA
35.69 -0.15 Credicorp
BAP 215.48 -0.41
-2.19 CBD Pao
CBD 20.01 -0.50 CreditAcceptance CACC 331.94 -0.90
-1.86 CBRE Group CBG 47.40 0.15
CreditSuisse CS
18.12 0.09
-0.63 CBS A
CBS.A 51.12 -0.17 CrownCastle CCI 109.61 -1.42
-0.04 CBS B
CBS 51.04 -0.23 CrownHoldings CCK 51.21 0.19
-0.61 CDK Global CDK 69.46 -0.10
GGP
GGP 21.63
Ctrip.com
CTRP 47.78 -0.95
0.97 CDW
AJG 70.74
CDW 74.63 -0.80 Cullen/Frost CFR 109.19 0.20 Gallagher
0.75 CF Industries CF
Gaming&Leisure GLPI 33.93
38.99 -1.32
Cummins
CMI 160.16 0.55
-0.31 CGI Group
Gap
GPS 31.83
GIB
58.75 0.01
CurtissWright CW 135.46 -0.13
-0.04 CH Robinson CHRW 90.28 0.54
GardnerDenver GDI 32.66
CypressSemi CY
18.41 -0.05
-0.46 CIT Group
Garmin
GRMN 59.68
CIT
54.00 -0.04
0.21 CME Group CME 165.39 2.44
Gartner
IT
123.15
0.05 CMS Energy CMS 43.71 0.39
Gazit-Globe GZT
9.66
-0.34 CNA Fin
CNA 52.17 -0.15 t DISH Network DISH 40.08 -0.42 GeneralDynamics GD 222.60
-0.24 CNOOC
14.36
CEO 143.41 -0.11 DTE Energy DTE 101.72 -0.05 GeneralElec GE
-0.01 CPFLEnergia CPL 14.53 -0.32 DXC Tech
DXC 104.44 0.10 GeneralMills GIS
50.93
-0.03 CRH
DHR 102.22 0.04 GeneralMotors GM
37.85
CRH 34.77 0.24 Danaher
-0.14 CSRA
DRI 93.62 -0.59 Genpact
G
31.98
CSRA 40.67
... Darden
-0.51 CSX
DVA 69.45 -0.58 Gentex
GNTX 23.30
CSX 56.75 -0.08 DaVita
0.18 t CVS Health CVS 65.86 -1.19 Deere
DE 159.60 -0.61 GenuineParts GPC 90.25
-2.60 CabotOil
DVMT 77.62 -0.20 Gerdau
GGB
4.67
COG 25.05 -0.52 DellTechs
-0.02 CadenceDesign CDNS 39.08 0.25 DeltaAir
DAL 56.34 0.19 Gildan
GIL
28.95
-0.26 CaesarsEnt CZR 12.40 -0.25 DentsplySirona XRAY 56.95 -0.35 GileadSciences GILD 79.51
-0.02 CamdenProperty CPT 84.07 0.14 DeutscheBank DB
15.70
... GSK
GSK 36.92
-0.79 CampbellSoup CPB 43.31 -0.89 DevonEnergy DVN 31.71 -0.91 s GlobalPayments GPN 118.21
-0.11 CIBC
DEO 135.70 -0.02 GoDaddy
GDDY 63.21
CM
90.21 -0.99 Diageo
-0.42 CanNtlRlwy CNI
GG
13.27
73.64 -0.99 DiamondbkEner FANG 124.60 -1.21 Goldcorp
New Highs and Lows | WSJ.com/newhighs
Stock
Net
Sym Close Chg
Stock
-0.09
-0.03
-0.33
-1.46
0.66
-1.74
-0.40
0.27
-0.25
-0.61
-0.56
-6.49
-0.03
1.91
-0.78
0.12
-0.48
-0.67
0.40
0.27
-1.65
-0.24
-0.19
-0.38
3.01
-0.36
-0.11
-0.10
-0.98
T U V
TAL Education TAL 38.97
TD Ameritrade AMTD 60.38
TE Connectivity TEL 104.51
Telus
TU
35.88
Ternium
TX
32.75
TIM Part
TSU 22.33
TJX
TJX 81.34
T-MobileUS TMUS 64.71
TRowePrice TROW 115.41
TableauSftwr DATA 84.54
TaiwanSemi TSM 45.31
TakeTwoSoftware TTWO 108.90
Tapestry
TPR 52.37
TargaResources TRGP 46.35
Target
TGT 70.63
TataMotors TTM 27.03
TechnipFMC FTI
29.18
TeckRscsB
TECK 27.20
TelecomArgentina TEO 33.75
TelecomItalia TI
9.94
TelecomItalia A TI.A
8.63
TeledyneTech TDY 190.95
Teleflex
TFX 265.93
TelefonicaBras VIV 15.12
Telefonica
TEF
9.87
TelekmIndonesia TLK 28.81
Tenaris
TS
35.01
Teradyne
TER 49.14
Tesla
TSLA 325.60
TevaPharm TEVA 18.05
TexasInstruments TXN 109.71
Textron
TXT 59.00
ThermoFisherSci TMO 212.45
ThomsonReuters TRI
39.53
ThorIndustries THO 120.74
3M
MMM 235.87
Tiffany
TIF 102.71
TimeWarner TWX 96.88
Toll Bros
TOL 43.85
Torchmark
TMK 85.54
Toro
TTC 62.61
TorontoDomBk TD
58.28
Total
TOT 57.23
TotalSystem TSS 89.76
ToyotaMotor TM 130.39
TractorSupply TSCO 62.98
-0.31 t TransCanada TRP 42.82
-0.07 TransDigm
TDG 296.00
-0.02 TransUnion TRU 58.65
TRV 140.47
0.41 Travelers
TRMB 38.23
0.33 Trimble
-0.43 TripAdvisor TRIP 43.74
9.85
-0.39 TurkcellIletism TKC
3.25
0.10 TurquoiseHill TRQ
1.21 21stCenturyFoxA FOXA 37.15
0.06 21stCenturyFoxB FOX 36.70
TWTR 35.80
-0.33 Twitter
TYL 209.04
-0.03 TylerTech
TysonFoods
TSN
73.73
0.24
-0.02 UBS Group UBS 18.39
UDR 35.67
0.21 UDR
UGI 43.42
-0.77 UGI
USFD 33.51
0.10 US Foods
UltaBeauty
ULTA 206.14
-0.19
-0.25 UltSoftware ULTI 248.06
-1.08 UltraparPart UGP 21.76
-0.35 UnderArmour A UAA 15.90
13.83
-0.36 UnderArmour C UA
UN
52.81
-0.16 Unilever
UL
52.24
-0.91 Unilever
0.04 UnionPacific UNP 136.26
UnitedContinental
UAL
70.14
-0.66
2.61
-0.13 UnitedMicro UMC
UPS 109.72
-0.14 UPS B
UnitedRentals
URI
182.91
-0.39
-1.51 US Bancorp USB 53.36
X
38.43
0.25 US Steel
1.25 UnitedTech UTX 129.25
-0.19 UnitedHealth UNH 229.48
-0.78 UnivDisplay OLED 123.55
1.16 UniversalHealthB UHS 123.83
1.97 UnumGroup UNM 49.81
VER
6.96
-1.89 VEREIT
VFC 74.72
-0.08 VF
VICI
Prop
VICI
19.42
0.03
V
123.41
-0.65 Visa
-0.06 VailResorts MTN 225.57
Vale
VALE
12.85
0.03
-6.00 ValeantPharm VRX 16.78
ValeroEnergy
VLO
92.33
-0.65
VAR 125.38
-0.07 VarianMed
Vedanta
VEDL
19.42
-1.85
VeevaSystems VEEV 77.14
0.39
Ventas
VTR 49.46
-0.12
s VeriSign
VRSN 125.31
-0.20
VeriskAnalytics VRSK 104.26
0.32
Verizon
VZ
48.29
-4.31
VertxPharm VRTX 173.97
0.12
Viacom A
VIA 40.05
-0.63
Viacom B
VIAB 32.83
-0.01
Vipshop
VIPS 17.91
0.23
VirtuFinancial VIRT 33.00
1.00
VistraEnergy VST 20.69
0.54
VMware
VMW 125.51
0.12
Vodafone
VOD 28.44
-0.05
VornadoRealty VNO 68.62
-0.64
VoyaFinancial VOYA 54.10
0.28
VulcanMatls VMC 117.92
0.07
0.04
0.40
WBC 138.77
0.08 WABCO
-0.22 WEC Energy WEC 61.97
WEX 158.23
0.07 WEX
WPC 61.93
0.17 W.P.Carey
WPP 81.19
-1.43 t WPP
WAB 81.88
0.01 Wabtec
WalgreensBoots
WBA 67.38
0.44
WMT 87.51
-0.50 Walmart
s WasteConnections WCN 73.87
WasteMgt
WM 86.25
Waters
WAT 212.34
0.26 Watsco
WSO 181.38
-0.64 Wayfair
W
83.96
0.58 Weibo
WB 133.72
-0.04 WellCareHealth WCG 193.57
-0.55 WellsFargo
WFC 56.83
-0.16 Welltower
WELL 53.75
-0.54 WestPharmSvcs WST 91.31
-0.07 WestarEnergy WR
50.11
-0.09 WestAllianceBcp WAL 60.18
-0.13 WesternDigital WDC 102.23
0.16 WesternGasEquity WGP 34.84
-0.33 WesternGasPtrs WES 45.55
-0.11 WesternUnion WU
20.02
-0.39 WestlakeChem WLK 115.52
-0.02 WestpacBanking WBK 23.18
-0.21 WestRock
WRK 66.51
-0.95 Weyerhaeuser WY
35.62
-0.21 WheatonPrecMet WPM 19.61
0.09 Whirlpool
WHR 160.48
0.21 t Williams
WMB 26.69
0.30 t WilliamsPartners WPZ 35.10
1.37 WillisTowers WLTW 162.28
0.24 Wipro
WIT
5.65
-0.41 WooriBank
WF
44.33
-0.06 Workday
WDAY 136.42
-0.54 Worldpay
WP 83.82
-0.50 Wyndham
WYN 116.15
-0.21 WynnResorts WYNN 186.21
-1.03 XPO Logistics XPO 103.75
-0.52 XcelEnergy
XEL 43.65
-0.26 Xerox
XRX 31.05
-0.09 Xilinx
XLNX 75.83
-1.01 Xylem
XYL 77.64
-0.16 YPF
YPF 21.63
-2.11 YY
YY 117.04
1.58 Yandex
YNDX 42.27
1.69 YumBrands YUM 82.88
0.48 YumChina
YUMC 41.28
-0.53 ZTO Express ZTO 15.33
0.30 ZayoGroup
ZAYO 36.38
-0.01 ZebraTech
ZBRA 144.40
-0.22 s Zillow A
ZG
57.99
-0.22 s Zillow C
Z
58.20
-0.10 ZimmerBiomet ZBH 115.92
0.39 ZionsBancorp ZION 54.75
0.36 Zoetis
ZTS 84.69
52-Wk %
Sym Hi/Lo Chg Stock
4.25 -1.1
65.11 -1.7
16.63 -3.5
12.50 -10.9
57.29 -3.9
43.92 -5.6
4.03 -3.1
26.60 -3.0
61.56 0.5
3.95 -5.1
2.40 1.0
0.82 -4.7
0.11 -17.0
2.34 -0.4
3.95 -8.6
19.65 -5.6
39.70 0.3
0.23 -10.0
0.75 -3.3
20.50 -0.7
21.67 -0.4
20.94 -1.9
7.47 -16.5
21.60 -2.5
8.04 0.5
2.83 -4.3
18.76 1.3
22.51 -2.8
37.42 -1.8
5.75 -17.8
8.95 -64.6
33.53 -10.8
91.78 -2.2
OrexigenTherap OREX
ParkerDrilling PKD
PA REIT PfdD PEIpD
PA Reit Pfd B PEIpB
PennREITPfdC PEIpC
QuintanaEnergy QES
REV
REVG
RangerEnergySvcs RNGR
SanchezEnergy SN
ShawComm B SJR
ShellMidstream SHLX
SignetJewelers SIG
Smart&FinalStores SFS
SolidBiosci
SLDB
SpectraEnerPtrs SEP
SpectrumBrands SPB
-1.28
0.88
0.30
0.95
-0.38
-0.31
0.05
-0.01
-0.54
-0.53
-0.80
-0.21
-1.65
0.19
0.13
-0.51
-0.06
4.15
0.45
-0.49
-0.18
-0.19
-1.02
-1.10
1.43
-0.60
0.01
0.96
-1.91
0.09
0.05
-0.33
4.10
-2.25
0.57
0.30
-0.07
-0.03
-0.21
0.83
2.51
-0.19
-0.17
-0.33
-0.36
-0.20
-0.31
-0.22
2.30
0.17
-0.16
-0.41
1.15
0.19
-0.20
-0.45
0.40
0.76
-0.30
0.40
0.10
-2.51
W X Y Z
52-Wk %
Sym Hi/Lo Chg Stock
KingswayFin
KFS
KraftHeinz
KHC
LibertyOilfield LBRT
LifetimeBrands LCUT
MagellanMid MMP
MaxarTech
MAXR
MedleyCapital MCC
MicroFocus
MFGP
MidAmerAptPfdI MAApI
MonakerGroup MKGI
MtnProvDiamonds MPVD
NationalAmerUniv NAUH
Neovasc
NVCN
NewGold
NGD
NextDecade
NEXT
NuSTAREnergy NS
OaktreeCapital OAK
Net
Sym Close Chg
Stock
-0.40
0.67
-0.43
0.03
0.44
-0.98
-1.17
-0.16
0.47
-0.16
1.12
-0.76
-0.90
2.23
-0.70
0.20
0.22
-0.86
-0.23
0.12
-0.97
-0.69
-0.82
-0.10
-0.83
-0.29
0.31
0.38
-0.29
0.36
-1.45
-1.77
0.75
0.02
0.22
-2.37
-0.59
0.07
0.99
-0.46
0.11
0.30
-0.18
0.53
0.02
1.16
-0.72
0.61
-0.34
0.10
-0.36
-2.39
-0.50
-0.44
-0.32
-0.03
0.34
52-Wk %
Sym Hi/Lo Chg
SummitMidstream SMLP
TCP Capital
TCPC
TC PipeLines TCP
TMSRHolding TMSR
TallgrassEnerGP TEGP
Teligent
TLGT
Tellurian
TELL
TransCanada TRP
Tupperware
TUP
VEON
VEON
ValeroEnergyPtrs VLP
WPP
WPP
WheelerREIT WHLR
WideOpenWest WOW
Williams
WMB
WilliamsPartners WPZ
xGTechnologyWt XGTIW
14.25 -4.3
13.75 -0.4
38.20 -17.9
9.00 1.1
18.75 -5.9
2.43 -5.7
7.47 -7.5
41.11 -2.9
47.66 0.4
2.61 -1.1
34.22 -4.0
80.26 0.5
3.25 -18.3
7.03 -23.3
24.76 -5.2
32.74 -4.8
2.11 -67.1
Dividend Changes
Dividend announcements from March 15.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Ottawa Bancorp
Realty Income
Williams-Sonoma
CPHC
OTTW
O
WSM
1.8
.07 /.06
Net YTD
NAV Chg % Ret Fund
27.38 -0.07
FrankTemp/Temp Adv
GlBondAdv p 11.79 -0.04
Harbor Funds
76.95 +0.14
CapApInst
IntlInst r
68.23 +0.14
Harding Loevner
NA
...
IntlEq
Invesco Funds A
EqIncA
11.03 -0.02
John Hancock Class 1
15.39 -0.01
LSBalncd
16.43 -0.02
LSGwth
John Hancock Instl
23.76 -0.09
DispValMCI
JPMorgan Funds
40.33 -0.16
MdCpVal L
JPMorgan R Class
CoreBond
11.36
...
Lazard Instl
20.86 -0.15
EmgMktEq
Lord Abbett A
...
ShtDurIncmA p 4.21
Lord Abbett F
4.20 -0.01
ShtDurIncm
Metropolitan West
10.43
...
TotRetBd
10.42 -0.01
TotRetBdI
9.81 -0.01
TRBdPlan
MFS Funds Class I
ValueI
40.90 +0.01
MFS Funds Instl
25.49 -0.01
IntlEq
Mutual Series
GlbDiscA
31.79 -0.03
Oakmark Funds Invest
32.48 -0.03
EqtyInc r
Oakmark
87.06 -0.08
28.57 +0.01
OakmrkInt
Amount
Yld % New/Old Frq
Payable /
Record
ABDC
Aspen Ins 5.625% Pfd.
Aspen Ins Hldgs Pfd
Jupai Holdings ADR
OM Asset Management
AHLpD
AHLpC
JP
OMAM
5.6
5.7
2.3
.3516
.3719
.60
.09
OTTW
1.4
.065
Q
Q
Apr01 /Mar15
Apr01 /Mar15
May31 /Apr30
Mar30 /Mar16
Q
Apr13 /Mar30
1.4 .05 /.04 Q
5.2 .2195 /.219 M
Apr05 /Mar26
3.1
May25 /Apr27
Special
Apr04 /Mar30
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
.43 /.39
Q
Apr13 /Apr02
Reduced
Alcentra Capital
Symbol
Foreign
Increased
Canterbury Park Holding
Company
11.5
.18 /.25
Q
Net YTD
NAV Chg % Ret Fund
0.4 Old Westbury Fds
14.81
LrgCpStr
0.3 Oppenheimer Y
44.99
DevMktY
10.8 IntGrowY
44.66
1.1 Parnassus Fds
43.77
ParnEqFd
NA PIMCO Fds Instl
NA
AllAsset
0.6 TotRt
10.07
PIMCO Funds A
1.3
NA
IncomeFd
2.2
PIMCO Funds D
IncomeFd
NA
1.9
PIMCO Funds Instl
NA
IncomeFd
0.1
PIMCO Funds P
NA
-1.6 IncomeP
Price Funds
107.93
BlChip
4.2
NA
CapApp
NA
-0.2 EqInc
73.97
EqIndex
68.83
-0.4 Growth
HelSci
74.88
40.96
-1.7 InstlCapG
18.97
-1.8 IntlStk
-1.7 IntlValEq
15.11
92.88
MCapGro
0.3 MCapVal
30.56
N Horiz
57.22
0.1 N Inc
NA
11.49
OverS SF r
... R2020
NA
NA
R2025
0.9 R2030
NA
3.2 R2035
NA
... R2040
NA
-0.02
-0.01
+0.10
-0.16
...
...
...
...
...
...
+0.26
...
...
-0.05
+0.11
-0.26
+0.09
+0.02
+0.02
-0.06
-0.10
-0.21
...
...
...
...
...
...
...
Ottawa Bancorp
Net YTD
NAV Chg % Ret Fund
37.61 -0.06
Value
2.4 PRIMECAP Odyssey Fds
AggGrowth r 51.82 -0.23
42.05 -0.11
4.8 Growth r
2.4 Principal Investors
14.04 +0.01
DivIntlInst
2.6 Prudential Cl Z & I
14.21 -0.01
TRBdZ
NA Schwab Funds
42.50 -0.03
-1.5 S&P Sel
TIAA/CREF Funds
20.26 -0.03
EqIdxInst
NA
IntlEqIdxInst 20.26 +0.02
Tweedy Browne Fds
NA
28.48 +0.05
GblValue
VANGUARD ADMIRAL
NA
254.69 -0.18
500Adml
35.13 -0.03
BalAdml
NA
CAITAdml
11.57 +0.01
CapOpAdml r 164.18 -0.32
12.1
40.04 -0.04
EMAdmr
NA EqIncAdml
77.27 -0.52
NA ExplrAdml
94.41 -0.53
3.2 ExtndAdml
87.34 -0.39
9.9 GNMAAdml
10.24
...
6.4 GrwthAdml
76.89 -0.12
11.0 HlthCareAdml r 89.25 -0.12
1.6 HYCorAdml r
5.78 -0.01
-0.1 InfProAd
25.15 -0.08
6.7 IntlGrAdml
102.67 +0.62
0.5 ITBondAdml 11.03 -0.01
8.8 ITIGradeAdml 9.49
...
NA LTGradeAdml 10.03
...
1.6 MidCpAdml 196.78 -0.67
11.19
...
NA MuHYAdml
13.86
...
NA MuIntAdml
11.38
...
NA MuLTAdml
10.83
...
NA MuLtdAdml
15.71
...
NA MuShtAdml
Q
Net YTD
NAV Chg % Ret Fund
0.8 PrmcpAdml r 141.92
RealEstatAdml 107.74
16.9 SmCapAdml 72.34
12.9 STBondAdml 10.27
STIGradeAdml 10.50
1.0 TotBdAdml
10.49
TotIntBdIdxAdm 21.73
-1.9 TotIntlAdmIdx r 30.85
68.83
TotStAdml
3.2 TxMIn r
14.43
ValAdml
41.71
3.1 WdsrllAdml
67.30
0.4
WellsIAdml
63.63
71.96
WelltnAdml
...
WndsrAdml
81.09
VANGUARD FDS
3.2
DivdGro
26.85
1.2
211.61
HlthCare r
-1.2
22.71
INSTTRF2020
6.9
4.9 INSTTRF2025 23.11
-0.4 INSTTRF2030 23.43
6.8 INSTTRF2035 23.75
3.0 INSTTRF2040 24.06
-1.5 INSTTRF2045 24.27
40.38
6.3 IntlVal
19.94
3.0 LifeCon
34.23
-1.4 LifeGro
27.40
-1.4 LifeMod
28.12
7.4 PrmcpCor
30.80
-2.4 SelValu r
-2.1 STAR
27.30
-5.0 STIGrade
10.50
2.7 TgtRe2015
15.40
-1.4 TgtRe2020
31.64
-1.3 TgtRe2025
18.70
-1.8 TgtRe2030
34.08
-0.2 TgtRe2035
21.02
0.3 TgtRe2040
36.44
-0.07
-0.09
-0.29
-0.01
-0.01
-0.01
+0.02
-0.01
-0.10
...
-0.01
-0.08
-0.48
-0.47
-0.07
6.2
-8.3
2.2
-0.7
-0.7
-1.9
0.3
1.1
3.2
0.1
0.7
0.3
-1.9
-0.3
2.7
+0.02 1.1
-0.29 3.0
-0.01 0.8
-0.01 1.1
-0.01 1.3
-0.01 1.6
-0.02 1.9
-0.02 2.0
+0.01 1.3
-0.08 0.3
-0.02 1.7
-0.02 1.0
-0.04 4.5
-0.15 -1.5
... 1.9
-0.01 -0.8
... 0.5
-0.01 0.8
-0.01 1.1
-0.02 1.3
-0.01 1.6
-0.03 1.9
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
Apr05 /Mar26
Net YTD
NAV Chg % Ret
22.94 -0.02
36.92 -0.03
13.52 -0.05
10.87 +0.01
26.27 -0.19
41.67 -0.26
37.93 -0.04
VANGUARD INDEX FDS
254.64 -0.18
500
ExtndIstPl
215.55 -0.94
56.97 -0.19
SmValAdml
10.46
...
TotBd2
18.44 -0.01
TotIntl
68.80 -0.09
TotSt
VANGUARD INSTL FDS
35.14 -0.03
BalInst
...
DevMktsIndInst 14.45
...
DevMktsInxInst 22.58
87.34 -0.39
ExtndInst
76.90 -0.11
GrwthInst
10.25 -0.03
InPrSeIn
250.22 -1.18
InstIdx
InstPlus
250.24 -1.19
61.36 -0.08
InstTStPlus
MidCpInst
43.47 -0.15
214.39 -0.73
MidCpIstPl
SmCapInst
72.34 -0.29
SmCapIstPl 208.80 -0.85
STIGradeInst 10.50 -0.01
10.49 -0.01
TotBdInst
TotBdInst2
10.46
...
10.49 -0.01
TotBdInstPl
TotIntBdIdxInst 32.60 +0.02
TotIntlInstIdx r 123.38 -0.04
TotItlInstPlId r 123.41 -0.03
68.85 -0.09
TotStInst
41.71 -0.01
ValueInst
Western Asset
NA
...
CorePlusBdI
2.0
2.0
0.1
0.4
-1.9
-0.3
0.3
3.2
3.1
-0.1
-1.9
1.1
3.1
1.2
0.1
0.1
3.1
6.3
-1.4
3.2
3.2
3.2
2.7
2.7
2.2
2.2
-0.7
-1.9
-1.9
-1.9
0.3
1.1
1.1
3.2
0.7
NA
.
THE WALL STREET JOURNAL.
B10 | Friday, March 16, 2018
BANKING & FINANCE
BlackRock’s Board
Names Tech Executive
IMAGINECHINA/ASSOCIATED PRESS
BY SARAH KROUSE
AND JOANN S. LUBLIN
Yiguo Fresh Food, an Alibaba-backed e-commerce platform, sold crabs out of a vending machine last year. Alibaba may list in China.
Alibaba Looks to Go Home
Chinese technology company Alibaba Group Holding
Ltd. is working on a plan to
list on an exchange in its home
market, according to people
familiar with the matter. The
move comes more than three
years after its blockbuster initial public offering in New
York.
A secondary listing in China
could happen as soon as this
summer if the country’s securities rules are changed to allow listings of companies incorporated overseas, one of
the people said. While the bulk
of Alibaba’s business and operations are in China, the
nearly 20-year-old company is
incorporated in the Cayman
Islands.
Chinese laws have long prohibited overseas companies
from selling shares directly to
domestic investors. China also
forbids companies with shares
that carry different voting
rights to list on the mainland.
Alibaba has a complex ownership structure that gives its
founders and a small group of
executives more control over
the company than other shareholders.
The company in 2014
launched a $25 billion float on
the New York Stock Exchange
in what remains the world’s
largest IPO.
An Alibaba spokeswoman
STREET
Continued from page B1
is no reflection on the U.S.
Americans should be concerned about further falls,
however. Mr. Trump’s policies could almost be designed to weaken the dollar.
The short-term challenges
are the deficit-financed tax
cuts and the idea that the
economy can be made to
grow without inflation, or, as
Mr. Kudlow put it, “Just let it
rip, for heaven’s sake.” Longer-term threats come from
Mr. Trump’s inclination toward protectionism and his
treatment of allies.
The tax cuts add fiscal
stimulus to the economy at a
time when it is already running close to full capacity,
encouraging inflation rather
than real growth. More inflation means a weaker dollar,
all else equal, to keep international prices unchanged.
The deficits run up by the
tax cuts mean a flood of new
government debt, much of
which is financed by foreigners. To attract more buyers
requires a mix of higher interest rates—offsetting the stimulus—and a weaker exchange
rate to make the bonds and
bills more attractive.
Letting growth rip is a
message to the Federal Reserve to ignore concerns
about inflation and allow a
boom. Yet investors surely
would worry even more
about inflation if the Fed
were to reverse its arguments of the past year and
become dovish again.
Mr. Kudlow can make
these arguments because he
believes tax cuts can be selffinancing by encouraging
stronger economic growth.
In my view, inflation is on
the way because supply and
demand means wages accelerate as the job market tight-
Soaring Stock
Authorities Lure
Chinese Firms
Alibaba has more than doubled
in value since its New York
listing in 2014.
$500 billion
400
300
200
100
0
2014 ’15
’16
’17
’18
Source: FactSet
Chinese authorities in recent months have made it a
priority to try to entice tech
companies trading abroad to
list at home.
Regulators want large
homegrown companies and
promising startups to participate in its capital markets, giving individual investors an opportunity to tap into the
wealth generated by successful
companies, among other goals.
Tencent Holdings Ltd. is
listed in Hong Kong, while
Baidu Inc. is listed on the Nasdaq Stock Market.
Liu Shiyu, chairman of the
Chinese securities regulator, recently confirmed the government has been working to win
over overseas Chinese listings.
“You will see results,” he said
on the sidelines of a legislative
meeting in Beijing last week.
Noting that Chinese investors
haven’t been able to profit
from the share gains of some
foreign-listed firms, Mr. Liu
called it “a real pity” and said
this “cannot happen again.”
THE WALL STREET JOURNAL.
said the company has been
considering a listing in China
since 2014, if regulations
would permit it.
Alibaba’s
shares
have
climbed 86% over the past
year and have more than doubled since their IPO, gains that
investors in China have largely
missed out on. The company
has a market capitalization of
about $493 billion and is one
of the world’s most valuable
technology firms.
In recent months, China’s
securities regulator has been
in touch with several investment banks to discuss ways to
allow companies listed abroad
to issue securities on the
mainland, The Wall Street
Journal previously has reported.
ens. But it would be foolish to
be too confident. It is true
that people who had given up
looking for work are starting
again.
It is also true that companies say they plan more capital spending, and if they follow through—they haven’t
yet—then productivity might
pick up, helping to keep a lid
on inflation. Add in price
competition enabled by online retailing and global supply chains, and there are
powerful forces holding
down inflation. I still expect
a pickup in both wage and
price inflation, but it is easy
to find evidence to support
Mr. Kudlow on prices.
In the long run, the dollar
faces a challenge to its dominance from the rise of China.
The renminbi is a long way
from being a major reserve
currency, but China is liberalizing access to its markets,
so it is likely to become more
widely held. As the biggest
buyer of pretty much every
raw material, China is in a
good position to push commodity suppliers to price in
renminbi, something they
might consider once they become happy with the security of Chinese bonds.
China’s politics work
against this. It is a one-party
state with scant regard for
freedom, and it cares little
about the international order. In a crisis, suppliers of
reserve currencies need to
help foreigners who use their
money, as the U.S. did in
2008. Few could have faith
China would put concerns
about the international order
above its own self-interest.
It will be many years before China can challenge the
dollar’s reserve-currency status, but it is becoming less
hard to imagine. China, too,
thinks it is a great country,
and wants a reserve currency, if not necessarily a
strong one.
A dual listing on the mainland would give Chinese companies the option of raising
money domestically in their
local currency and help boost
their profile at home, said
Rocky Lee, managing partner
of the Silicon Valley office of
law firm King & Wood Mallesons.
He said well-known firms
could potentially fetch higher
valuations, because their
brands and businesses are better known in their home country.
China’s stock market has
historically had a reputation
for being akin to a casino, and
some analysts have said the
listings of a few hot names
could fuel speculation by Chinese individual investors, who
dominate trading in the markets.
A Chinese tech company
that is considering listing in
China as well as overseas is
smartphone maker Xiaomi
Corp., people familiar with the
matter previously told the
Journal.
The company is planning to
raise at least $10 billion in an
initial public offering this year
and has picked Hong Kong as
its main listing venue but is
also considering a concurrent
listing on the mainland at the
behest of Chinese authorities,
the people said.
Xiaomi’s parent company is
incorporated in the Cayman
Islands.
—Chao Deng
contributed to this article.
BlackRock Inc. is adding a
slate of new board members as
the world’s largest money
manager tackles two pillars of
its growth strategy: technology
and international operations.
The firm named Margaret
“Peggy” Johnson, executive
vice president of business development at Microsoft Corp.;
William Ford, chief executive
of private-equity firm General
Atlantic LLC; and U.K. insurer
Aviva PLC Chief Executive
Mark Wilson as directors, a
spokesman said.
BlackRock, which manages
$6.3 trillion in assets, attracted record new investor
cash last year, pulling in the
equivalent of $1 billion each
day. Its business now spans investing, advisory work and a
risk and portfolio management
technology system known as
Aladdin that the firm uses internally and sells to a growing
list of financial companies.
Chief Executive Laurence
Fink has said the New York firm
has a goal of having a third of
its revenue being “enabled by
technology” in the next five
years, partly through Aladdin
and by using technology to fuel
better investment performance
and fund sales. BlackRock currently spends more than $1 billion on technology and data.
The firm last year added
Cisco Systems Inc. Chief Chuck
Robbins as a director, making
him the first technology chief
on the board.
The three new members
would be the most BlackRock
has added at one time. The additions come as several of the
firm’s board members have left
recently because of the company’s age policy for directors.
Microsoft’s Ms. Johnson,
age 56, spent more than 20
years at Qualcomm, where she
was a member of the executive
committee, before joining the
Seattle-based technology giant.
After the expected election of
the new directors at BlackRock’s
shareholder meeting May 23,
five of the total 18 board members will be female, or about
28% of the group. At that time,
a third of independent directors
will be women, the highest proportion ever at BlackRock.
BlackRock and other large
money managers such as State
Street Global Advisors have
pressed the companies in
which they invest, particularly
in the past year, to make their
Ms. Johnson of
Microsoft is
one of three
people named
by BlackRock
to its 18member board.
Under BlackRock’s governance guidelines, directors
must retire at age 75—unless
they reached 70 years old as of
July 2013, in which case they
are able to serve until age 80.
Two long-serving directors
with backgrounds in finance
left the board last year because of the age limit and another two have now reached
that threshold.
James Grosfeld, former
chairman and chief executive
of Pulte Homes Inc., and Abdlatif Al-Hamad, chairman of
the Arab Fund for Economic
and Social Development, won’t
stand for re-election at this
year’s annual meeting. A fifth
independent director at BlackRock resigned last summer.
Few big businesses have
boards as big as BlackRock’s. The money manager
and General Electric Co. were
the only companies in the S&P
500 with 18 board members in
2017, according to a proxy
statement analysis by Spencer
Stuart. The average S&P 500
board had 10.8 members last
year, the analysis said. GE will
soon shrink its board to 12.
FINANCE WATCH
ENERGY
Group Expects Oil
Demand to Increase
Global oil demand will likely
grow faster than expected this
year, partly offsetting a surge in
U.S. shale production and
keeping the market in balance,
the International Energy Agency
said Thursday.
In its closely watched
monthly oil-market report, the
IEA predicted the world’s
appetite for crude would
increase by 1.5 million barrels a
day to reach 99.3 million barrels
a day in 2018, an upward
revision of 90,000 barrels. The
uptick is expected to be driven
by robust demand in industrialized nations, including the U.S.
and Japan and in Europe, the
agency said.
“The market rebalancing is
clearly moving ahead with…
supply and demand becoming
more closely aligned,” the report
noted.
The agency said that global
oil supply came down slightly in
February in monthly terms to
97.9 million barrels a day but
was still up 740,000 barrels
compared with a year earlier.
The IEA expects supply
growth this year to be driven by
OPEC production, however,
fell last month, to 32.1 million
barrels a day. OPEC and 10
producers outside the oil cartel,
including Russia, have been
holding back output by 1.8
million barrels a day since the
start of last year in an effort to
rein in a global supply glut that
has weighed on prices since late
2014.
—Christopher Alessi
countries outside the
Organization of the Petroleum
Exporting Countries.
Non-OPEC supply is expected
to increase by nearly 1.8 million
barrels a day this year, with 1.5
million barrels coming from U.S.
crude production, according to
the report.
U.S. crude output rose by
135,000 barrels a day last
month, to a record 10.2 million
barrels a day, boosted by burgeoning shale output, the IEA
said. Earlier this month, the
agency said it expects the U.S.
to overtake Russia to become
the world’s largest oil producer
by 2023.
HNA GROUP
Hilton Grand Vacations
Stake of 25% Is Sold
DANIEL ACKER/BLOOMBERG
BY JULIE STEINBERG
AND LIZA LIN
boards more diverse.
Mr. Ford, 56, has led General Atlantic since 2007, and
among the companies in which
the private-equity firm has invested are payments company
Adyen, a number of financialtechnology startups and Chinabased internet and technology
companies. Mr. Ford sits on
the boards of portfolio companies such as IHS Markit and
designer brand Tory Burch.
Aviva’s Mr. Wilson, a 51-yearold New Zealand native, worked
for 14 years in Asia, including
four years as chief of insurer
AIA Group Ltd., before joining
the U.K. firm. BlackRock has increasingly sought to provide investment management and advice to big insurers with the
help of Aladdin in recent years.
It has also tried to generate
more revenue overseas. The
percentage of its base fees and
assets under management derived from the Asia-Pacific region has held steady at 7% to
8% in the past five years.
U.S. crude output rose by 135,000 barrels a day last month to a record 10.2 million barrels a day.
HNA Group Co.’s 25% stake
in Hilton Grand Vacations sold
at a price of $46.25 a share late
Wednesday, raking in a big profit
for the Chinese conglomerate as
it continues to unload U.S.
holdings.
The secondary offering values
HNA’s stake at $1.14 billion,
giving the firm a more than 90%
gain since acquiring the shares a
year earlier.
HNA originally paid $24.32 a
share for its position in the
time-share company and sold its
shares at a 1.6% discount to
Hilton Grand Vacations’ closing
stock price on Wednesday. As
part of the offering, HNA sold
2.5 million of its shares back to
the company.
The Chinese firm agreed to
acquire a 25% stake in Hilton
Worldwide Holdings Inc. in 2016.
After the hospitality company
subsequently split into three separate publicly traded entities—Hilton Worldwide, Hilton Grand Vacations and Park Hotels &
Resorts—HNA received a 25%
stake in each when its acquisition
was completed in March 2017.
HNA recently sold its $1.4
billion stake in Park Hotels, a
real-estate investment trust that
owns dozens of Hilton hotels,
convention centers and other
properties across the U.S.
—Michael Wursthorn
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | B11
* * * *
MARKETS
Spotify
Gives Rare
IPO Peek
To Public
Brownout
The NYSE Alerian MLP Index, a widely tracked
barometer of master-limited partnerships, sharply
fell after the elimination of a key tax benefit.
Percentage change from Wednesday’s close
NYSE Alerian MLP Index
2%
0
BY MAUREEN FARRELL
AND AUSTEN HUFFORD
Spotify’s debut will
be one of the biggest
technology IPOs
in recent years.
shares directly to the public
rather than list via a traditional offering with underwriters. They said Spotify doesn’t
need the money, but they
want to give existing shareholders the opportunity to
easily sell shares on a public,
liquid exchange. Executives
also said they want any investor—rather than a curated
group—to have the chance to
buy shares on the first day.
“I think the traditional
model for taking a company
public isn’t a good fit for us,”
said Mr. Ek, who added he
won’t ring the bell the day
Spotify’s stock opens on the
New York Stock Exchange.
With an increasing number
of streaming music competitors, Spotify told possible investors Thursday that it is trying to differentiate itself and
not become just one of many
music platforms.
Spotify is aiming for offerings that drive usage and signups, such as timed exclusives
and albums with unique video
components. The Swedish
company said it not only
courts users, but also artists,
with production tools and data
analytics, as it strives to be a
marketplace for connecting
both established and new artists with fans.
As part of its goal to reach
as many people as possible,
the music streaming service
said its free, ad-supported tier
would remain in place, even as
nearly 90% of its revenue
comes from premium, subscription-based users.
“Something for nothing. It’s
the greatest value proposition
in the history of the world,”
said Gustav Söderström, Spotify’s head of research and development. “The more they
engage, the more likely they
are to decide that pay music is
for them,” he added later.
The company said its free
tier, which artists and music
labels at one time said devalued music, is used to bring in
more users, glean data from
them to improve products and
then eventually convert some
onto its paid tier. Spotify has
grown the percentage of subscribers who pay for the service, which sat at 45% at the
end of 2017, up from 39% a
year before.
Heard: It isn’t easy to pin a
price on Spotify’s IPO. ...... B12
–2
–4
–6
REUTERS
–8
–10
9:30 10
11
Noon
Caterpillar shares rose 1.3%, as industrial companies were among the few gainers in the S&P 500.
Source: WSJ Market Data Group
S&P 500 falls for
fourth day while
Nasdaq declines for
third straight session
gling to regain some of its momentum at a time when many
investors are already worried
that more trade tariffs, along
with aggressive responses
from key U.S. allies such as the
European Union, could crimp
growth around the world and
put a damper on earnings
among U.S. conglomerates,
manufacturers and other businesses—which had been crucial components to the rally’s
upswing last year.
President Donald Trump is
considering a package of antiChina measures, including tariffs on some imports, to pres-
1
2
3
4
THE WALL STREET JOURNAL.
Bargain Hunting Lifts Blue Chips
naed the Trump Organization
to turn over documents.
All the while, investors continued to assess the implications of the Trump administration’s protectionist trade
agenda, and some stepped in
to buy the depressed shares of
manufacturers after new data
showed better-than-expected
production output.
The Dow Jones Industrial
Average traded in a range of
301 points, while the S&P 500
and the Nasdaq bounced along
the flatline before turning
lower after the initial report
on Mr. Mueller’s subpoena.
“A Mueller headline isn’t
going to do any favors for the
market right now,” said Michael Antonelli, a trader for
R.W. Baird & Co. “It had been
weak all day, and this unsettled it further.”
The Dow industrials rose
115.54 points, or 0.5%, to
24873.66. The S&P 500 declined 2.15 points, or less than
0.1%, to 2747.33, while the
Nasdaq Composite shed 15.07
points, or 0.2%, to 7481.74.
Energy companies, which
had been trading higher earlier in the day, fell after the
Federal Energy Regulatory
BY MICHAEL WURSTHORN
AND MIKE BIRD
The Dow Jones Industrial
Average edged higher Thursday, as some investors took
advantage of the market’s
slump to help the blue-chip index snap a
THURSDAY’S t h r e e - s e s MARKETS
sion losing
streak.
Despite
the Dow’s gain, stocks wobbled throughout the day, and
the S&P 500 finished lower for
a fourth consecutive session,
its longest run of daily losses
since early December. The
Nasdaq Composite fell for a
third straight day.
The elimination of a key tax
benefit for some pipeline companies sent shares of energy
companies reeling and sapped
indexes of their upward momentum. Stocks fell further on
reports that special counsel
Robert Mueller has subpoe-
Commission eliminated certain
master limited partnerships’
income-tax allowance on cost
of service rates. Williams shed
$1.45, or 5.2%, to $26.69, while
EQT fell 2.72, or 5.2%, to
49.73.
The NYSE Alerian MLP Index, a widely tracked barometer for the sector, fell 4.6%, its
biggest drop this year.
Materials companies were
also among the S&P 500’s biggest decliners, extending the
sector’s losses for the week to
3.3%. Chemical companies, a
sector that would face higher
costs by constructing new facilities under the tariffs, were
hit particularly hard, with
Monsanto declining 5.95, or
4.8%, to 117.20, and Mosaic
falling 71 cents, or 2.6%, to
26.39.
Declines among packaging
and metals companies also
dragged the sector down.
Industrial companies were
one of the S&P 500’s few gainers, supported by fresh data
showing solid growth in manufacturing activity in New
York state. Caterpillar, a Dow
component, added 2.03, or
1.3%, to 154.57.
The bull market is strug-
The Treasury Department will
auction $107 billion in securities
next week, comprising $45 billion
in new debt and $62 billion in previously sold debt. Details (all with
minimum denominations of $100):
Monday: $51 billion in 13week bills, a reopening of an issue first sold on June 22, 2017,
maturing June 21, 2018. Cusip
number: 912796MF3.
Also, $45 billion in 26-week
bills, dated March 22, 2018, maturing Sept. 20, 2018. Cusip
Trading in Japan’s Bonds Dries Up
BY SURYATAPA BHATTACHARYA
Trading volume in Japan’s
benchmark 10-year government bond has been slowing
even as caution has increased
in global markets since the
start of February, with no exchange trading
CREDIT
of the debt on
MARKETS Tuesday.
While activity
has been sapped
in part by local investors unsure about the direction of
Japan’s central-bank monetary
policy, seasonal factors are
also at play. March is the end
of the fiscal year for many
Japanese companies, and companies generally don’t want to
make late portfolio changes.
But perhaps the biggest factor is the Bank of Japan.
Investors have had little incentive to trade Japanese government bonds, or JGBs, since
September 2016, when the central bank introduced yieldcurve controls in its efforts to
boost the country’s economy.
The effort included setting a
target to keep the 10-year
bond’s yield around zero. Part
of doing that has been buying
as much as ¥80 trillion ($752.4
billion) in bonds annually by
some estimates.
The central bank says it owns
¥432 trillion of JGBs, which is
44% of the total market.
“The BOJ’s focus on buying
the 10-year leaves almost no
space for other investors,” said
Shuichi Ohsaki, head of strategy for Bank of America Merrill Lynch.
Meanwhile, central bank
Gov. Haruhiko Kuroda is set to
be reappointed to a second
term along with two new deputy governors in April. Mr.
Kuroda has repeatedly said the
BOJ won’t change its easymoney policy unless inflation
gets to 2%. The central bank
has time and again had to delay when it thinks such price
growth will occur. The latest
target is in two years, and the
country’s most-recent inflation
reading was below 1%.
But investors aren’t convinced that the BOJ will—or
can—wait that long before
starting to talk about beginning the policy tightening that
is under way in locales including the U.S. and Europe.
“We cannot see the next
move of the BOJ clearly,” says
Takahiro Sekido, Japan strategist at Bank of Tokyo-Mitsubi-
sure
Beijing
to
end
requirements that U.S. companies transfer technology to
Chinese firms.
The S&P 500 continues to
trade about halfway between
its January record and its
early February lows more than
a month after fears about inflation rising faster than expected caused a sharp selloff.
Elsewhere, the Stoxx Europe 600 added 0.5% to break
a two-day losing run. In Asia
early Friday, Japan’s Nikkei
Stock Average was down 0.3%,
and Hong Kong’s Hang Seng
Index was down 0.1%.
Treasury Sets Sales of $107 Billion in Debt
number: 912796PZ6.
Noncompetitive tenders for
both issues must be received by
11 a.m. EDT Monday and competitive tenders by 11:30 a.m.
Thursday: $11 billion in
nine-year, 10-month 0.5% Treasury inflation-protected securities, a reopening of an issue first
sold on Jan. 31, 2018, maturing
Jan. 15, 2028. Cusip: 9128283R9.
Noncompetitive tenders must
be received by noon Thursday;
competitive tenders, 1 p.m.
Robinhood’s
Valuation
Is Put Over
$5 Billion
BY ROLFE WINKLER
AND DOUGLAS MACMILLAN
TOMOHIRO OHSUMI/BLOOMBERG NEWS
Spotify Technology SA executives outlined their vision
for the music-streaming company and dug into its financials, opening to the public a
presentation that typically remains behind closed doors, as
the company hurtles toward
an April initial public offering.
As it paves its nontraditional path to go public via a
so-called direct listing, Spotify
said it would prioritize growth
over profit and seek to differentiate itself and defend its
leadership position in music
streaming from a broad field
of powerful competitors. It
said it plans for its shares to
start trading April 3 and will
provide financial guidance on
March 26.
Spotify’s debut will be one
of the biggest technology IPOs
in recent years. Its listing will
likely be coveted by investors
seeking high growth that often
comes with big-name, highly
valued technology IPOs, which
have been rare of late.
In a twist on a traditional
IPO roadshow, Spotify cofounder and Chief Executive
Daniel Ek and other senior executives took the stage at a
studio space in front of potential investors in Manhattan’s
SoHo neighborhood, while the
public could access the presentation through a live
stream. In a normal IPO, such
meetings are reserved for fund
managers and other big Wall
Street investors.
Spotify executives defended
the company’s plans to sell
S&P 500
BOJ Gov. Haruhiko Kuroda has said the easy-money policy won’t be changed unless inflation hits 2%.
shi UFJ.
Out of an overabundance of
caution, “the JGB market
doesn’t move,” said Naoya Oshikubo, rates strategist with
Barclays in Tokyo.
The 10-year JGB didn’t
trade on Tuesday, according to
Japan Bond Trading Co. That
was the first instance of a
whole day without trading
since June 29, according to
Quick Corp. Meanwhile, 10year yields have finished at
0.045% for the past five trading sessions.
Low yields are also a factor
in the lack of buying. Aside
from the White House, there
has been little to drive trading
this month.
But average trading volume
was also lower in February
than in the prior two years,
and January’s average was
one-third below that in 2016
and 2017.
Last month, 10-year JGB
yields climbed as high as
0.095% amid a global selloff in
bonds and speculation that
change was coming to Japan’s
monetary policy. Bond yields
rise when prices fall.
The BOJ then stepped in to
tamp down yields, muffling
trading volume in the process.
Now, investors are largely
waiting until the start of the
new Japanese fiscal year in
April, when some new and familiar faces will be formally
appointed to the central bank’s
leadership.
Treasury Prices Fall
After Strong Data
payments. A report showed
that import prices rose 0.4% in
February from the previous
month. That was above the
0.2% increase anticipated by
economists surveyed by The
Wall Street Journal.
Separately, the Empire
State Manufacturing Survey’s
general business conditions index climbed to 22.5 in March,
well above the consensus estimate of 15 and up more than
nine points from the previous
month. An index of business
activity in the mid-Atlantic region was also slightly above expectations, though it dropped
from February.
Mary Ann Hurley, vice presi-
Treasury prices eased back
after three days of gains following some encouraging economic data.
The yield on the 10-year
Treasury note rose to 2.824%
on Thursday, compared with
2.815% the day before. Yields
rise when bond prices fall.
Favorable economic news
often weighs on Treasurys because it can portend a pickup in
inflation, which hurts government bonds by eroding the purchasing power of their fixed
Volume Slump
Monthly trading volumes in 10-year
Japanese government bonds
¥4.0 trillion
January
February
March
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
2016
’17
’18*
*Through March 14
Note: ¥1 trillion = $9.41 billion
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
dent of fixed-income trading at
D.A. Davidson & Co., said she
was “surprised that the market
is as unchanged as it is” given
the strength of the economic
data.
Treasury yields have
climbed significantly this year
partly because investors have
become more concerned that
continued economic growth will
finally translate to higher inflation, along with a faster pace
of interest-rate increases from
the Federal Reserve. In recent
weeks, however, some of that
anxiety has abated, as some
economic measures have fallen
below expectations.
—Sam Goldfarb
Robinhood Markets Inc. is
set to be valued at about $5.6
billion in a new funding round,
according to people familiar
with the matter, a fourfold rise
in just one year that reflects
the stock-trading app’s soaring
popularity among millennials.
The Silicon Valley startup is
in the final stages of securing
around $350 million from a
group of investors led by Russian firm DST Global, according to the people familiar with
the fundraising. DST led Robinhood’s last funding round a
year ago, which valued the
company at $1.3 billion.
A Robinhood spokeswoman
declined to comment.
The valuation puts Robinhood among the top 15 highest-valued private technology
companies in the U.S., representing an ambitious bet by
investors that the firm can
capture a sizable piece of the
financial-trading market.
Robinhood’s three-year-old
app has amassed more than
four million users—roughly
doubling from the prior year—
by offering free stock trades
that undercut even discount
brokers that charge small fees.
The question is whether
Robinhood
can
convince
enough of its users to pay for
premium services, such as
“Gold” subscriptions that start
at $6 a month for the ability to
trade after hours and borrow
capital. Robinhood also makes
money on interest held in client
cash accounts and by selling
client trades to market makers.
As of last year, the median
age of Robinhood’s users was
around 30. The company is
banking that the younger investors’ assets will grow over
time, and that it will be able to
sell them additional services.
Robinhood has sought to keep
costs low by shunning marketing and reducing overhead.
Some investors also see opportunity in Robinhood’s recent introduction of trading in
cryptocurrencies such as bitcoin, according to a person familiar with the investment.
Those trades are also commission-free.
.
B12 | Friday, March 16, 2018
THE WALL STREET JOURNAL.
MARKETS
Billions Flow Into Tech-Focused Funds
Addition of $5 billion
this year bolsters
the market but worries
rise over valuations
BY MICHAEL WURSTHORN
Investors are increasing
their bets on shares of technology companies, renewing
concerns that the market is
becoming too dependent on a
few big stocks to power its
gains.
Nearly $5 billion has poured
into tech-focused stock funds
so far this year, the most of
any major sector, according to
Thomson Reuters Lipper data.
That figure represents nearly
half of what the group pulled
in for all of 2017. In January
alone, tech funds received $3.9
billion in inflows, the most in
a single month for such funds
since March 2000—the peak of
the dot-com bubble.
Tech shares have gained
13% since major indexes fell
into correction territory on
Feb. 8, compared with a 6.4%
gain for the S&P 500 index.
Some investors worry that
valuations for blue-chip tech
stocks such as Amazon.com
Inc., Google parent Alphabet
Inc. and Netflix Inc. could become stretched as more
money flows into the sector.
Amazon, for example, trades
at 161 times its forward earnings over the next 12 months,
while Netflix is changing
hands at 106 times, according
to FactSet. For the S&P 500,
that metric is at 17.
Tech stocks have already
enjoyed a huge run-up in
prices over the past several
years, and some investors may
unload those shares to protect
their gains, analysts said. With
the S&P 500 index increasingly
supported by the biggest tech
companies, any selloff in the
sector could drag down the index with it.
“Investors tend to want to
be in the names with the best
Share-price performance, year to date
Netflix
60%
50
40
Amazon
30
Nvidia
Adobe
20
Cisco
Microsoft
Alphabet
Apple
10
0
–10
January
February
March
Net flows into U.S. stock funds focused on tech
Share-price performance of S&P 500 stocks
by sector, year to date
Wage growth, percentage change
from a year earlier
$10 billion
Technology
3%
5
0
–5
1995
2000
’05
’10
’15
’18*
10.2%
Consumer discretionary
6.8
Health care
3.4
Financials
3.3
Industrials
0.5
Materials
-2.2
Utilities
-5.5
Real estate
-5.6
Telecom
-6.4
Consumer staples
-6.6
Energy
-7.6
2
1
0
2017
*As of March 7
Sources: FactSet (share-price performance); Thomson Reuters Lipper (flows); Bureau of Labor Statistics (wage growth)
growth and best visibility,”
said Michael Balkin, a portfolio manager with fund company William Blair. “It’s been a
worry for a while.”
A half-dozen tech companies are responsible for much
of the S&P 500’s gains so far
this year: Microsoft Corp., Apple Inc., Cisco Systems Inc.,
Nvidia Corp., Alphabet and
Adobe Systems Inc. Including
online retail giant Amazon and
streaming service Netflix, both
of which are tech companies
that sit among other consumer-discretionary stocks,
those eight companies have
contributed more than half of
the S&P 500’s gains in 2018.
“It’s really only a few companies in tech that lead the
rally,” said Jon Mackay, investment strategist at Schroders.
“The others haven’t done so
well.”
Major stock indexes rapidly
declined last month, jolting investors who had grown accustomed to the market’s calm,
steady rise. The Dow Jones Industrial Average and the S&P
500 tumbled more than 10% in
early February in what was
the worst month in more than
two years for the two major
’18
THE WALL STREET JOURNAL.
indexes.
Stocks have moved wildly
since then, and major indexes
have managed to recoup much
of their losses, thanks in large
part to tech stocks. Firms tied
to technology in the S&P 500
have risen more than 10% this
year, the best performers of
the broad index’s 11 major sectors, and largely on the back of
the group’s biggest companies.
While the selloff was broad
during the worst of last
month’s pullback, outflows
among value stocks, or shares
of companies that generally
generate steady profits when
the economy slows down, exacerbated
the
declines.
Roughly $3.9 billion has been
pulled from real-estate-focused funds so far this year,
more than $900 million from
utilities funds and about $326
million from energy-related
funds, according to Lipper’s
data.
Some active managers are
looking at stocks beaten down
by the return of volatility.
“Value investing has been a
little bit harder than it has
been in the past because
there’s more uncertainty attached to it,” said Thomas Digenan, head of U.S. Intrinsic
Value Equities at UBS Asset
Management. “That’s where
the returns come from.”
But many investors continue favoring tech—especially
after companies such as Microsoft and Amazon reported
strong earnings—as they try
to gauge whether the historic
upswing is nearing its end,
money managers say.
Investors continue embracing stocks when the Trump
administration’s plan to impose tariffs on steel and aluminum is stirring up volatility
in industrial sectors. Shares of
manufacturers that use steel
and aluminum have reeled, as
investors yanked hundreds of
millions of dollars from those
stocks, according to Lipper.
Tech has fared better, but if
the Trump administration proceeds with additional tariffs,
such as potential sanctions
against China, those stocks—
especially shares of chip makers—will suffer, some analysts
added.
“It’s buying blindly,” William Blair’s Mr. Balkin said of
investors snapping up tech
stocks. “Once the flows reverse, [those stocks] can drop
very quickly.”
HEARD ON THE STREET
Email: heard@wsj.com
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Dollar General Gets Edge on Rival Not Easy to Pin Down
While many retailers are
struggling in a world upended by Amazon.com, discount chains like Dollar
General have thrived as the
go-to stores for America’s
left-behind communities.
Last year a lot of investors
preferred rival Dollar Tree
as excitement built around
its acquisition of Family
Dollar in 2015. Dollar General’s shares fell even as it
beat expectations.
Now the scale is tipping
back in its favor.
Dollar General reported a
same-store sales increase of
3.3% for the fourth quarter.
Earnings per share of $1.48
on revenue of $6.13 billion
met analysts’ expectations.
But its 2018 outlook far exceeded them. It forecast a
9% increase in sales and sees
earnings between $5.95 and
$6.15 a share, ahead of analysts’ estimates of $4.49 a
share. It also added $1 billion to its stock-buyback program. Shares rose nearly 5%
Thursday.
Down to the Dollar
Share-price performance over the past year
60%
40
Dollar Tree
20
Dollar General
0
–20
2017
’18
Source: FactSet
THE WALL STREET JOURNAL.
That is especially impressive given the recent performance of other retail stocks.
Ross Stores shares have
plunged, and Walmart and
Target missed earnings estimates. And when Dollar Tree
reported fourth-quarter
earnings last week, the stock
fell nearly 16%, its biggest
tumble in nine years.
Dollar Tree’s earnings and
sales both fell slightly short
of expectations. More worrying for investors was the retailer’s disappointing forecast. For the first quarter of
2018, it expects earnings per
share between $1.18 and
$1.25, below estimates of
$1.32.
Dollar Tree is essentially
still paying for its acquisition of Family Dollar, invest-
ing to upgrade stores and
planning to spend around
$100 million this year on
wages, maternity leave and
employee training. Dollar
Tree is facing further pressure because Walmart and
Target have increased wages
and issued bonuses.
“With unemployment so
low and employees potentially getting better wages at
other retailers, Dollar Tree is
feeling pressured,” says Anthony Chukumba, a retail analyst at Loop Capital. “Discount retailers already pay
their employees less to begin
with.”
Dollar General, unburdened by a big acquisition,
did much of that spending
last year.
Dollar General outbid Dollar Tree for Family Dollar in
2015, but didn’t get the
prize. Now, having made
smart investments last year,
it is looking strong while its
rival struggles with an acquisition that still needs a lot of
work.
—Elizabeth Winkler
Foreigners Love Russia’s Bond Market
The political waves being
generated by Vladimir Putin’s Russia are hard to ignore, with the U.K. expelling
23 diplomats after the poisoning of former spy Sergei
Skripal and the U.S. row over
Russian interference in the
2016 election continuing. Except, of course, in Russia,
where Mr. Putin is all but
certain to win a fourth term
as president this weekend.
That has presented a
counterintuitive opportunity
for investors, which has
drawn them into Russian
bonds.
From one perspective, investors face no test of
nerves over Sunday’s vote,
unlike recent Western European elections. Mr. Putin is
supported by around 70% of
Chasing Yield
Share of Russian domestic
government bonds held by
nonresidents
40%
30
20
10
0
2012 ’13
’14
’15
’16
’17
’18
Source: Central Bank of Russia
voters, according to state
pollster VTsIOM.
For Russia’s economy,
sanctions and the oil-price
meltdown forced changes in
policy that have benefited investors. Mr. Putin gave free
hand to the Central Bank of
Russia, which has crushed inflation, stabilized the ruble
and encouraged foreign investors. Nonresidents now
hold one-third of domestic
government bonds, compared
with barely any six years ago.
Russian bonds still look
good, with a 10-year yield of
just under 7%, while inflation has fallen well below
the central bank’s 4% target.
Conservative economic policy was part of the reason
for Standard & Poor’s to upgrade Russia to investmentgrade status in February.
But Russia needs change,
too. The economy has
emerged from recession and
grew 1.5% in 2017, but much
faster growth may be tricky:
The central bank says structural reform is needed to lift
growth beyond 1.5% to 2%.
Russia’s population is shrinking and aging. Productivity
is poor and state involvement in the economy is high.
Russian equities have
done well this year, but the
poor growth outlook makes
it hard to get excited even
though stocks trade at optically cheap valuation.
More severe sanctions are
a risk to this stability; the
U.S. on Thursday announced
measures against intelligence
agencies and individuals,
which weakened the ruble a
little. And even the attraction of stability bears the
risk that Russia simply stagnates economically. For as
long as that is the case, Russian bonds, not stocks, will
be the draw.—Richard Barley
Spotify’s IPO Pricing
As Spotify knows well,
hitting the right notes
doesn’t always produce a hit.
The music-streaming
giant sounded good at its
first official meeting with
prospective investors on
Thursday.
This meeting was in lieu
of a traditional IPO roadshow, since Spotify isn’t
doing a traditional IPO.
Instead, the company plans
to list its shares directly on
the New York Stock Exchange on April 3, effectively
allowing the market to set
the price.
Spotify said Thursday it
would issue a forecast for
the current year the week
before the listing.
The company did share
some helpful clues. Most
notable was its long-term
goal of reaching gross margins of 30% to 35%. Spotify
grew this number by seven
percentage points last year,
to 21%, mainly by striking
new deals with music labels.
That would suggest that
much of Spotify’s future
hinges on the negotiating
power of its lawyers.
But the company on
Thursday also outlined
several ways it is building up
alternative revenue drivers
into its model. This includes
advertising as well as services to help artists and
music labels better target
their offerings.
On a service with more
than 35 million songs,
Spotify’s ability to guide
users through the jungle
could prove lucrative.
The trick for investors
will be deciding how much
to pay for that opportunity
now. It is hard to tell based
on private sales of company
shares and industry valuations.
In private sales so far this
year, Spotify’s shares have
fetched anywhere from
$48.93 to $132.50. That
would value the company at
between 1.8 times trailing
sales and 4.8 times based on
the company’s most recent
share count.
Pandora, the company’s
closest publicly traded peer,
trades about 0.9 times
trailing sales while videostreaming stalwart Netflix
trades at nearly 12 times.
Spotify clearly prefers
comparisons with the latter.
But investors would be wiser
to set a lower bar early on.
The best songs sometimes
take a while to catch on.
—Dan Gallagher
OVERHEARD
Bear Stearns disappeared
10 years ago this week, but its
alumni are prospering.
On this anniversary, two
Bear Stearns alumni have ascended to the heights of business and government: David
Solomon became the likely
next CEO of Goldman Sachs
Group and Lawrence Kudlow
was named director of the National Economic Council.
The success of Bear
Stearns alumni isn’t surprising.
The firm was known for hiring
smart people who were eager
to succeed and reveled in beating out more established firms.
While other Bear Stearns
veterans who left in the 1990s
have had great success, including Pimco chief investment officer Daniel Ivascyn, even
those tinged with the collapse
have moved on. Bear Stearns
CEO Alan Schwartz is a top
executive at Guggenheim
Partners, and his predecessor,
James Cayne, remains on the
competitive bridge circuit.
Dennis Quaid on his
first love, Gertrude
M5
HOMES
|
MARKETS
|
PEOPLE
|
MANSION
UPKEEP
|
VALUES
|
NEIGHBORHOODS
|
REDOS
.
‘Spring is the time of plans and
projects.’ —Leo Tolstoy, Anna Karenina
|
SALES
THE WALL STREET JOURNAL.
© 2018 Dow Jones & Company. All Rights Reserved.
|
FIXTURES
|
BROKERS
Friday, March 16, 2018 | M1
Agents’ Great Deals—for Themselves
With their knowledge of the local market and expertise in negotiations, real-estate
pros can often buy hidden-gem family homes with strong potential to grow in value.
WASHINGTON, D.C. Agent Michael Rankin, left, and Mark Green,
shown with their children, spent $7 million to buy and redo their
home, aided by their familiarity with preservation requirements.
CHESTERFIELD, MO. Agent Susie Johnson and her husband,
Art, paid $1.3 million for their home, well below the $1.6 million
asking price. Since then, the local market has taken off.
LOS ANGELES Billy Rose and his wife paid $1.2 million for their
home in 2003. After their divorce, the home was listed for $3.95
million. Rather than sell, Mr. Rose bought out his ex-wife’s share.
FROM LEFT: STEPHEN VOSS FOR THE WALL STREET JOURNAL (2, WASHINGTON D.C.); JENNIFER SILVERBERG FOR THE WALL STREET JOURNAL (2, CHESTERFIELD); MICHAL CZERWONKA FOR THE WALL STREET JOURNAL (2, LOS ANGELES)
BY CECILIE ROHWEDDER
WHEN MICHAEL RANKIN went house-hunting
in Washington’s Georgetown neighborhood, his
25-year career in the real-estate business gave
him an edge. He bought a detached, 1903 home
with off-street parking and a large backyard—all
hard to find in that area—for $5 million.
Another $2 million went toward renovating
the 7,000-square-foot home, which went
smoothly because he and his husband, Mark
Green, had already restored and sold other historic homes and were versed in Georgetown’s
preservation requirements.
“We knew not to go in and ask for things that
you couldn’t do in a historic neighborhood,”
says Mr. Rankin, 52, principal and managing
partner of TTR Sotheby’s International Realty.
He estimates his professional experience saved
the family 10 months of waiting and tinkering
with the design proposal. As it was, the renova-
tion, completed in the fall of 2015, took 14
months.
Agents buying their own homes rarely strike
a bad deal: They are first to spot desirable properties, often before they are listed. They know
local inventory and historic price swings. And
they have a working knowledge of construction,
plus connections to the best architects, builders
and designers in town. Above all, real-estate
agents know what looks good to other buyers
Please turn to page M12
A NEW IDEA OF LUXURY TAKES ROOT
INSIDE
High-end developments offer homeowners a locavore lifestyle that includes access to vegetable gardens,
orchards, beehives and livestock; for an extra fee, there’s even weeding and watering service.
KRISTIN HOSHINO FOR THE WALL STREET JOURNAL (4)
BY AMY GAMERMAN
DISHING DIRT Ron Verstappen, above, picks fruits and vegetables at the Kukuiula resort in Hawaii,
where he built a $4.5 million home. Bounty, left, includes limes and passion fruit for cocktails.
COCKTAIL HOUR at Ron
Verstappen’s $4.5 million
home in a resort community
on the island of Kauai in Hawaii usually features some
freshly picked local fruit.
“Passion fruit is just past
season now—it makes great
daiquiris,” said Mr. Verstappen, 50, the retired founder
of Wombat Financial Software. He starts each morning much the same way, with
a fruit smoothie—leaving out
the alcohol. “I should add
kale, I suppose,” he said.
The passion fruit and the
kale are gathered by Mr. Verstappen himself from the Kukuiula resort’s pick-your-own
7-acre orchard and 6-acre
farm, which are reserved for
community residents.
The farm-to-table movement helped spawn the agrihood—a planned community
that offers vegetable gardens
and other agrarian elements.
Now, a crop of luxury developments dedicated to a more
upscale version of the locavore lifestyle are taking root.
Homeowners might have
unlimited picking rights in
landscaped gardens of or-
ganic microgreens, berries
and flowers. Concierge weeding and watering services
are provided for residents
who want their own gardens
but don’t have the time or
inclination to tend them.
Resident chefs hold al fresco
dinners and cooking workshops, teaching homeowners
how to turn the bounty into
goodies like breadfruit crisps
or pizzas made with homemilled flour.
“We have five different
kinds of bananas growing,
and they aren’t the kind you
buy in the grocery store,” said
Richard Albrecht, president of
Kukuiula, the 1,010-acre development that opened in
2010. Home prices range from
$1.5 million to $15 million.
More than 70 agrihoods
have been created or are in
development across the country, said Ed McMahon, a senior resident fellow at the Urban Land Institute. “It’s a
high-value, low-cost amenity
and it figures into this green,
farm-to-table, reduced carbon
footprint trend—and people
seem to like local everything,”
Please turn to page M7
$49.5 MILLION
Tiger Woods’s ex-wife
lists Florida home M2
ROCK SOLID
The heart of this
home is a boulder M3
SALES SAGA
Four years and a $2.6
million price cut M6
.
M2 | Friday, March 16, 2018
THE WALL STREET JOURNAL.
NY
MANSION
Tiger Woods’s Ex-Wife Lists for $49.5 Million
Swedish former model Elin
Nordegren, the ex-wife of
golfer Tiger Woods, is listing
her North Palm Beach. Fla.,
home for $49.5 million.
Located in Seminole Landing, a private, gated community
located on the Atlantic Ocean
and next to Seminole Golf
Club, the property totals about
25,878 square feet with 11 bedrooms, 15 full bathrooms and
three half bathrooms, according to the listing. It sits on 1.4
acres, with 200 feet of direct
ocean frontage.
Ms. Nordegren purchased
the site for $12.25 million in
2011 and razed an existing
home to make way for the custom estate, which is built in
the British West Indies architectural style.
The main residence, completed in 2014, has several
rooms with retractable glass
doors, a roof deck, a wine cellar, a theater, two kitchens and
a subterranean gym with an
observation window that looks
directly into an outdoor swimming pool with a water slide.
The interiors were decorated
by Angela Reynolds, who also
designed Celine Dion’s home
on Jupiter Island, said Todd
Peter, who shares the listing
with his colleagues Cristina
Condon and Frances Peter at
Sotheby’s International Realty.
There’s also a cabana
house with a bar, a billiards table and a summer kitchen. A
separate guest house is configured as two apartments, each
with its own living room and
kitchenette. Amenities include
a putting green, a fire pit and a
sport court for basketball and
pickleball.
Mr. Woods and Ms. Nordegren were married for six years
until their well-publicized divorce in 2010. They have two
children together. A spokesman
for Ms. Nordegren said she
was selling the property to
downsize. He added that she is
no longer modeling and that
she is scheduled to get her
master’s degree in psychology
in May.
If life is but a dream ,
THIS IS LIVING.
ROCKEFELLER ESTATE SELLS FOR 50% OVER ASKING
Mother Nature created it. We perfected it.
It’s time to pick your place in paradise.
K i aw a h i s l a n d . c o m
•
8 6 6 . 31 2 . 17 8 0
Obtain the Property Report required by Federal Law and read it before signing anything. No
Federal or State agency has endorsed or judged the merits of value, if any, of this property. This
is not intended to be an offer to sell nor a solicitation of offer to buy real estate in any jurisdiction
where prohibited by law. This offer is made pursuant to the New York State Department of Law’s
Simplified Procedure for Homeowners Associations with a De Minimis Cooperative Interest
(CPS-7).The CPS-7 application (File No. HO16-0007) and related documents may be obtained
from the sponsor. This project is registered with the State of New Jersey Department of Banking
and Insurance Real Estate Commission. Obtain and read the NJ Public Offering Statement
before signing anything (NJ Reg#16-15-0012). AN AFFILIATE OF KIAWAH PARTNERS.
A Pocantico Hills, N.Y.,
mansion owned by the estate
of David Rockefeller, the venerable chief executive of Chase
Manhattan Bank, has sold for
$33 million, 50% above its
$22 million asking price.
Known as Hudson Pines,
the Mott Schmidt-designed
compound in Westchester
County dates back to 1938 had
been on the market since the
fall, according to representatives for the listing brokerage,
Houlihan Lawrence Private
Brokerage, who declined to
disclose the name of the buyer.
The property sits on over 75
acres with views of the Hudson River.
The main residence measures about 11,343 square feet
across three levels with a floating staircase, a library with a
carved fireplace, offices, a wine
vault and a master wing with a
private balcony. It has 11 bedrooms, 12 full bathrooms and
three half-baths.
The grounds include specimen gardens and woodlands, a
heated pool, a large carriage
house, a three-bedroom gatehouse and a six-stall horse
barn. There are also greenhouses and a private helipad.
Mr. Schmidt was responsible for a number of notable
projects across New York City,
including an addition to the
mayor’s house, Gracie Mansion.
Mr. Rockefeller, the grandson of oil tycoon John D.
Rockefeller, died there in March
2017 at age 101.
Eileen Rockefeller, Mr.
Rockefeller’s daughter, grew up
in the home and said her
memories revolve around the
animals the family owned. She
recalled her mother having
brought a baby donkey home
in the back of a station wagon
and a pet goat peering in the
window while the family had
lunch. The pet raccoons, in
particular, were “trouble makers,” she said.
“It was very hard to say
goodbye” to the property, she
said.
Anthony Cutugno and David
Turner of Houlihan Lawrence
represented the estate in the
sale.
SKIN-CARE
GURUS LIST
HAMPTONS
HOME FOR
$23.5 MILLION
A Southampton, N.Y., home
on star-studded Squabble
Lane is hitting the market for
$23.5 million.
The property is owned by
skin-care and cosmetics entrepreneur Trish McEvoy and her
husband Ronald Sherman, a
cosmetic dermatologist. They
run the Dr. Ronald Sherman/
Trish McEvoy Skin Care Center
in Manhattan.
They bought the home
from Elena Ford for $5.495
million in 2000, property records show. Ms. Ford is an executive at the Ford Motor Co.
and an heiress of the Ford
family fortune.
The property, which is located three houses from the
ocean on 2.4 acres, has
deeded access to the beach.
The house itself, which has a
roof with turrets, dates back
to 1998. Ms. McEvoy and Dr.
Sherman tapped architect
Preston T. Phillips to renovate
shortly after they acquired the
home, installing a new kitchen
and updating the bathrooms,
according to the listing agent,
Tim Davis of the Corcoran
Group.
The 8,500-square-foot
main house has seven bedrooms and nine bathrooms,
with frontage on Wickapogue
Pond. It has a waterfront library with a fireplace, a media
room, a mudroom, a gym and
a master suite with a private
rooftop deck. Outside, there’s
a heated pool with a Jacuzzi.
Mr. Davis said his clients
are selling the home because
they’re not spending enough
time in the Hamptons.
“Rather than leaving it empty
for another summer, they
want to sell it,” he said.
Squabble Lane is one of
the Hamptons’ best-known
enclaves. Residents include
entertainment personality
Howard Stern and billionaire
real-estate developer Richard
LeFrak. Former tennis champion John McEnroe sold his
home on the street for $11.25
million last year, records show.
See more photos of notable homes at WSJ.com/Mansion. Email: privateproperties@wsj.com
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THE WALL STREET JOURNAL.
Friday, March 16, 2018 | M3
MANSION
BALANCE SHEET
Meet a Modern Stone-Age Family
An 18-ton boulder in the living room and other giant rocks define a Lake Tahoe home’s ‘gnarchitecture’
BY NANCY KEATES
KEY
COSTS
Boulders and
crane
$100,000
Board-formed
concrete
$300,000
Windows,
collapsible glass
walls
$100,000
Steel and
metalwork
$300,000
Smart-home
technology
$100,000
MOUNTAINTOP From left to right, Billie, Eddie and Tommie Wells on the 18-ton boulder in the living room. Below, clockwise from left, the dining table is held up
by a bronze cast of a snowboarder’s legs; LED colored lights illuminate the master bed; owners Rob and Amy Wells, who enlisted friends to do much of the work.
has his main home, in 2002 and
worked on branding for restaurants and casinos in Las Vegas,
California and New York.
After the garage was finished,
Mr. Wells focused on the house,
which he estimates cost around
$1.4 million—but that’s hard to pin
down, since most of the labor, including framing, plumbing, electrical and excavation, was done by
himself and friends—guys he’d also
known in Lake Tahoe for decades
who put up with his constant design adjustments. “They got mad
sometimes but they didn’t charge
me change fees because they’re all
my bros,” explains Mr. Wells.
Mr. Wells charred the red cedar
used on the walls and exterior
himself using a blowtorch, guided
by a YouTube video. Mrs. Wells, a
graphic designer, did the lettering
on the doors (“enter @ your own
RISK” is on the front door).
The most striking element is the
house’s use of boulders. There’s
one in the main entry, half inside
and half outside, divided by a floorto-ceiling glass wall; another that
goes through a wall from the master bedroom into the master bathroom, with part of it peeking into
the shower. “No one else has these
rocks,” says Mr. Wells, who found
them after a friend said it would be
cool to incorporate outdoor elements into the home and told him
about a guy who sells boulders off
his land on Donner Summit.
Getting the boulder in the living
room required a 200-ton crane and
the addition of steel beams to support it. The overriding design mission is what Mr. Wells calls “gnarchitecture,” architecture infused
with fun and passion, a term inspired by skateboard culture. The
walnut dining table, surrounded by
yellow metal chairs, is held up by
a bronze cast of pro snowboarder
Dave Seoane’s legs. Art includes
works by Gen X favorites Damien
Hirst and Douglas Coupland.
“In my world—with all my clients—I have lots of rules, lots of
bosses. You can’t ever just do
something with no rules—you
need to follow the plans or least
put some reasoning behind it.
With this I had total freedom;
there was nobody who could tell
me no,” says Mr. Wells.
SHEA EVANS FOR THE WALL STREET JOURNAL (4)
“JACKED UP AND unfinished” is
how Rob Wells describes both
himself and his new vacation
house, located a few blocks away
from the Squaw Valley ski resort
in Lake Tahoe, Calif.
Mr. Wells, a former host of an
ESPN skateboarding show and an
Xtreme sport cookbook author, developed the blue-bubblegum flavor
for Jones Soda Co. Now, at 48, he
owns and runs creative agency
Sixteenfifty Design in La Jolla, Calif., that handles branding and
marketing campaigns for restaurants and bars at spots like the
Hard Rock Hotel.
The house, which he built last
year with his wife Amy, 41, is a vibrant, edgy 2,600-square-foot,
three-bedroom geometric contemporary made from glass, steel,
stone, wood and board-form concrete, which is concrete set using
wood as the forming material.
Twisted-steel cable once used on a
Squaw Valley chairlift forms the
stair railing, and a bright-blue
folding glass wall opens onto a
stone deck with a full-on view of
the mountains.
An 18-ton boulder sits in the middle of the living room, lighted from
underneath in different LED colors.
On one side are rock-climbing holds
used by his three daughters, Eddie,
11, Billie, 9, and Tommie, 5.
Still in the works is a hot tub on
the roof deck that will be reached
by an outdoor stairway with glass
sides to make it look like it’s floating. A retired chair lift, also from
Squaw Valley, is currently used as a
coat rack in the entryway but will
soon be operational, using a sheave
and cables to carry people from the
front door up to the second floor.
Mr. Wells bought the property
for $892,000 in 2013. He then tore
down all but one wall of the existing 1980s wood-and-stucco house.
The project began a few years ago
with a garage cut on a sharp angle
into the hill, fronted by a neon
pink overhead door that immediately attracted attention, causing
drivers to slow down for a look.
“I love it—it’s better than a
speed bump,” says Victoria Mercer,
a psychologist who lives two doors
down and whose daughter, Stella,
plays there often. She describes
the reaction in the neighborhood
as “a lot of shaking of heads.”
Mr. Wells moved to Lake Tahoe
in 1986 after high school, skipping
college to work the ski lifts. He
started a snowboard shop and gardening business, worked construction in the summers and baby-sat,
among other things. He started his
own company in La Jolla, where he
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THE WALL STREET JOURNAL.
M4 | Friday, March 16, 2018
MANSION
LIVING HISTORY
Once an Asylum, Then a Convent, Now a Home
A Belgian mansion that started out as a bachelor pad has served many purposes since it was built
in 1809; today, the fully restored house—with five main dining rooms—is listed for about $4 million
BY J.S. MARCUS
CASTLE CHIC Bruges native Herman Walleyn, above with his wife, Leny Houtekamer.
He bought the 9,500-square-foot mansion,
right, in 1996 for about $1.2 million and restored it. The Blue Room, top, features a
fireplace discovered during the two-year restoration that bears the family crest of a previous owner.
RESTORED Clockwise from above left: one of two kitchens, a sculpture in the grand salon, a heated indoor pool and bronze dog sculptures from Thailand.
BEA UHART FOR THE WALL STREET JOURNAL (7)
HISTORY KEEPS repeating itself
at Leyselebeke Castle, a neoclassical mansion outside the historic
center of Bruges, Belgium, where
twice in the past two centuries
homeowners did luxurious makeovers to rescue the residence from
institutional settings.
The 9,500-square-foot structure
started out in 1809 as a grand
bachelor pad for a Bruges lawyer.
He had to sell within a few years
after falling on hard times.
By the 1830s, the white-columned home had become what
was then called an insane asylum,
before a member of one of Flanders’ leading noble clans converted it into a stately home for
his large family.
A century later, the castle
changed functions again, this time
as a convent, until 1996 when its
current owner, Bruges native Herman Walleyn, bought it for €1 million, or about $1.2 million, from its
resident order of nuns.
He recovered Leyselebeke Castle’s original beauty—for “several
hundred thousand euros”—by unearthing decorative ceilings and
ornate fireplace mantles while
adding new amenities, such as an
indoor pool and a landscaped park.
The home, on 10 acres, is now on
the market for about $4 million.
After raising six children from
an earlier marriage in the house,
Mr. Walleyn, now 62, married another Flanders native, Leny
Houtekamer, 61, who moved into
the mansion in 2007. They are
planning to relocate to the historic
center of Bruges.
Life at Leyselebeke Castle
changes with the seasons, shifting
among the mansion’s five main
dining areas, says Ms. Houtekamer,
a former production planner for a
division of Monsanto.
In mild weather and for holidays,
she and Mr. Walleyn, who owned a
Belgian printing company, like to
eat in the home’s most impressive
room: a columned salon off the
main entrance, with 26-foot ceilings.
In the fall and spring, they decamp
to a richly decorated, pavilion-like
dining room, also on the main floor.
For the winter, they reserve a cozier
basement dining area. A fourth dining room on the main floor is used
for meals that coincide with meetings, while an outdoor dining area
on the veranda is used in high summer.
Two full kitchens service the
dining rooms. The large one in the
basement is outfitted with an Aga
stove, while the one on the main
floor, with an espresso maker, is
suitable for snacks. “I like to cook
and he likes to eat,” says Ms.
Houtekamer of her spouse.
Leyselebeke Castle was commissioned during a period of national
instability and shifting tastes, says
Andrew Van den Abeele, a Bruges
native and amateur historian.
The first owner—attorney
Charles Donny (1765-1838), whose
family had Scottish origins—was
“a Francophile and firm believer
that the whole of Flanders had to
become French,” says Mr. Van den
Abeele. He built his country house
in the Empire style. Flanders, administered by Austria for centuries, was annexed by France in
1795.
The anti-clerical tendencies of
Revolutionary France led to Bruges’s churches being sold off. Mr.
Van den Abeele believes Leyselebeke Castle may have been built
with stones from St. Donatian’s
Cathedral, the city’s largest church
until its destruction in 1799.
Donny’s reversal of fortune in
1811 led to the estate changing
hands a few times, says Mr. Van
den Abeele, until a local Dominican order turned it into “a posh
mental institution” in the 1840s, a
few years after Belgium had won
its post-Napoleonic independence
from Holland.
In 1878, Henri de la Kethulle de
Ryhove, scion of a centuries-old
noble family from Ghent, bought
the property. Married to Victorine
Coppieters, whose family included
mayors of Bruges, he proceeded to
raise 14 children in the house, including Raphaël de la Kethulle de
Ryhove, who became a priest, and
spent nearly 40 years as a mis-
sionary in the Congo. He is still remembered for his promotion of
sports. In 1952, he founded the
largest stadium in what is now
Kinshasa. It is now known as Fr.
Raphael Stadium—site of the 1974
boxing match between George
Foreman and Muhammad Ali.
Leyselebeke Castle became a
convent in the 1930s for the Missionary Sisters of Our Lady of Africa, who divided up rooms and
covered decorations. “The nuns
were able to make even the richest
castle look modest,” says Mr. Van
den Abeele, who visited in the
1980s. Starting in 1996, Mr. Walleyn began returning the structure
back into a single-family home. “It
only took a few years,” he says.
He recaptured earlier flourishes
such as an ornate fireplace bearing
the de la Kethulle crest. There is
hardly a trace of the convent on
the main floor, where the summer
dining room once housed a chapel,
and a comfortable sitting room
once contained a sacristy. But on
the second floor, many of the
nuns’ cell-like rooms are still visible. Mr. Walleyn’s six children—
ages 28 to 37—adapted them for
their own purposes, he says, by
partially knocking down walls to
create double-roomed suites.
In addition to the three inhabited floors, the eight-bedroom
house has a vast attic and a network of cellars. The property has
stables, a gardener’s house and a
boat house on one of two artificial
lakes Mr. Walleyn also restored.
Ms. Houtekamer says she will
miss the park at her front door,
but it will be easier to communicate in the new 3,500-square-foot
townhouse. Now, she says, when
they are both at home, they often
have to rely on cellphones. “We
keep losing each other.”
Joke De Spiegelaere of Engel &
Völkers is handling the sale.
Midtown East
Upper East Side
Upper West Side
Armonk
Cos Cob
Midtown East
Brooklyn Heights
Upper East Side
Maria Manuche and Kyle Blackmon, Licensed Associate Real Estate Brokers. Kim Soule, Licensed Associate Real Estate Broker. Suzanne Bakst, Licensed Real Estate Salesperson. Brian Milton, Licensed Real Estate Salesperson. James Morgan, Licensed Associate Real Estate Broker, Licensed as James J. Morgan. Brandon Turner, Licensed Real Estate Salesperson. Julia Hoagland Team, Licensed Associate Real Estate Broker, NYRS, CNE. Real estate agents affiliated with Compass are independent contractor sales associates and are not employees of Compass. Equal
Housing Opportunity. Compass is a licensed real estate broker located at 90 Fifth Avenue, 3rd Fl. NY, NY 10011. All information furnished regarding property for sale or rent or regarding financing is from sources deemed reliable, but Compass makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice. To reach the Compass main office call 212.913.9058.
.
THE WALL STREET JOURNAL.
NY
823 Park Avenue
$13,750,000
7 Bed 7.5 Bath
Maria Manuche and Kyle Blackmon
917.328.2338
mmm@compass.com
301 East 50th Street
$4,800,000
3 Bed 3.5 Bath
Suzanne Bakst
917.439.4157
suzanne.bakst@compass.com
6 Cowdray Park
$3,249,000
6 Bed 6.2 Bath
Brian Milton
203.900.4020
brian.milton@compass.com
350 East 72nd Street
$1,795,000
2 Bed 2.5 Bath
Brandon Turner
561.325.0534
bturner@compass.com
Discover the most
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Friday, March 16, 2018 | M4A
174 Clinton Street
$7,995,000
6 Bed 3 Bath
Kim Soule
646.209.1675
kim.soule@compass.com
115 Bible Street, Connecticut
$3,495,000
6 Bed 5.2 Bath
Brian Milton
203.900.4020
brian.milton@compass.com
25 Central Park West
$2,695,000
1 Bed 1 Bath
James Morgan
646.681.3709
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325 East 57th Street
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646.832.3545
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NY
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THE WALL STREET JOURNAL.
Friday, March 16, 2018 | M5
NY
MANSION
HOUSE CALL | DENNIS QUAID
BRET HARTMAN FOR THE WALL STREET JOURNAL (PORTRAIT); SETH POPPEL/YEARBOOK LIBRARY (HISTORICAL); WARNER BROS/EVERETT COLLECTION (FILM STILL)
Still Enjoying
The Endless Summer
The actor came of age in the Houston suburbs; today,
a home in West L.A. with an after-hours lounge
I wanted a German shepherd when I was 9. Instead, my dad
came home with a basset hound named Gertrude. She became
my constant companion. But five years later, she disappeared.
IN MOTION
Dennis Quaid
at the Four
Seasons Los
Angeles, right;
in his school
drama club in
1971, above;
and in his role
in ‘The Right
Stuff,’ left.
start laughing and forget about it.
Dad was more about sitting around
waiting to be discovered. He didn’t
have the fortitude to make a plan
and doubted that any of his big
plans could be realized.
My mother, Nita, was a different
story. She knew only one way—you
had to go all in to get something
done. Talk didn’t mean much to
her. Eventually their differences
became a rift.
When I was 12, we moved a couple of miles away to a nicer house.
Soon after, my parents divorced.
My mother worked in
real estate. Our new
house had a third bedroom, so Randy and I
could spread out. There
also was a large yard out
back where we played
Wiffle ball.
Despite my dad not
being around, the neighborhood was great.
There were six kids on
our block close to me in
age. My brother also had
friends his age nearby.
On summer weekends
in the late 1960s, I’d go
outside and do a Tarzan
yell. Then I’d hop on my
gold Sting-Ray bike with
the banana seat, stick shift and
treadless rear tire. Friends and I
would bike to the edge of Houston
and buy fireworks. Or we’d go to the
community pool. It felt like freedom.
My mother was enormously supportive. She bought me my first
guitar, and I taught myself to play.
She also made time in her busy day
to take me to piano lessons. But my
mom knew nothing about acting.
That came from Cecil Pickett at
the University of Houston. The only
reason I went to college was to
study with him. He taught my
brother in high school.
Mr. Pickett had already left before I arrived in high school, but he
held summer workshops in town.
His classes were studies in human
behavior. He’d ask, “Why are peo-
Westchester &
Fairfield Homes
ple the way they are? What would
you do if you were that person?”
This approach fascinated me. I
knew exactly what I wanted to do
with my life.
My brother also was an inspiration. He left for L.A. in 1971. He
had landed a part in Peter Bogdanovich’s “The Last Picture
Show.” At college I took only acting
classes and left in my junior year
to move to L.A.
My first big break came after
five years of acting in minor films.
In 1978, I got a part in “Breaking
Away.” That led to “The Right
Stuff” and “The Big Easy” in the
’80s.
Today, I live in West L.A. It’s a
modern house built in the 1960s. I
moved in about four months ago. It
has straight lines and an open
plan. I’m not big on clutter. I’m
decorating my office as a comfortable after-hours lounge. I’ll be able
to play my guitar in there.
I loved my gold Sting-Ray. It
eventually was stolen from behind
a local convenience store in Texas.
Now I have a road bike that I ride
100 miles a week. When I get on
that bike, I feel like I’m 12 years
old again. That’s why I ride.
—As told to Marc Myers
Dennis Quaid, 63, is an actor and
musician who has appeared in
more than 70 films, including “The
Big Easy,” “The Parent Trap,” “The
Right Stuff” and “Traffic.” He currently stars in the film “I Can Only
Imagine” (Lionsgate).
LOVING
HOW
YOU
LIVE.
©2018 California Closet Company, Inc. All rights reserved. Franchises independently owned and operated.
We all assumed she was hit by a
car. And that’s exactly what happened. The driver brought her to
the vet, then took her on walks to
strengthen her broken leg. One day
they passed our house. Gertrude
pulled them up our walkway. When
I answered the door, I just broke
down. Gertrude jumped all over
me. She had been gone six months.
I grew up in Bellaire, Texas, a
suburb of Houston. We first lived
in a lower-middle-class neighborhood in a small two-bedroom
house with shingle siding. My older
brother, Randy, and I shared a
room. We were very close, but we
fought over stuff. He always won.
He was much stronger.
My father, Buddy, was an electrician. People thought he looked like
actor Dana Andrews. He told us
that while he was on leave from
the Merchant Marine in San Francisco during World War II, two
movie-studio guys asked him to do
a screen test in L.A. He was shipping out the next day and couldn’t.
Dad always regretted not doing
that screen test.
Deep down, dad was a frustrated
actor. He taught Randy and me
about the movies. He knew all the
actors’ names in the old films on TV
and did imitations of them. At my
grandmother’s house, we’d put on
shows while she played the piano.
My father wasn’t good about
discipline. He’d come into our room
and pretend to be mad. His belt
was in his hand, but he’d soon
You dream it.
We design and build it.
Make every space your own.
Reach an affluent audience of real estate buyers looking for luxury
properties in your area. The Wall Street Journal’s upcoming special
advertising feature will highlight the local communities, neighborhood
amenities and other factors that drive sales in your market.
The section, distributed to our New York audience, provides a
targeted opportunity to reach serious local buyers within engaging
and relevant content.
Issue Date: 5/3 | Close Date: 4/30 | Section: Mansion
For advertising opportunities, please contact:
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M6 | Friday, March 16, 2018
THE WALL STREET JOURNAL.
NY
MANSION
MA1893
LUXURY PROPERTIES | TIMBERLAND | CONSULTING
THE TRADE
A Castle Finds a New King
A Manhattan apartment with stained glass and
gargoyles takes four years and big price cuts to sell
RI0075
Wianno Waterfront Estate
2± Acres, Osterville, MA | $5,900,000
Stewart Young
617-357-8949 • syoung@landvest.com
MA2020
Beaver Neck Waterfront
30± Acres, Jamestown, RI | $7,950,000
Terry Boyle
401-367-4070 • tboyle@landvest.com
MA2110
Woodlands
5.49± Acres, Hamilton, MA | $2,995,000
Lanse Robb
617-357-8996 • lrobb@landvest.com
ANASTASSIOS MENTIS PHOTOGRAPHY (4)
VA0107
Vineland on the Chesapeake
178± Acres, Eastern Shore, VA | $3,700,000
Jonathan Burt
404-545-6300 • jburt@landvest.com
NOT YOUR TYPICAL LIVING ROOM The home’s unusual appearance and castle-like features
made for an uphill battle when its owner first set out to sell the two-bedroom apartment in 2014.
NY0323
BY CANDACE TAYLOR
397 Nahatan Street
8.22± Acres, Westwood, MA | $1,900,000
Jay Boyle
617-648-5444 • jboyle@landvest.com
NH0475
Norman Ridge Farms
483± Acres, Vermontville, NY | $2,550,000
Vinny McClelland
518-576-2297 • vmcclelland@landvest.com
ME1422
Greenlaw Farm
420 Dorchester Road
546± Acres, Northport, ME | $1,775,000
Terry Sortwell
207-236-3543 • tsortwell@landvest.com
29.24± Acres, Lyme, NH | $1,395,000
Kristin Hayes Claire
603-494-9448 • kclaire@landvest.com
Sound Advice, Exceptional Results
www.landvest.com
Living On
The East End
IT TOOK ALMOST four
years and a $2.6 million discount, but Janos Aranyi finally found a buyer for the
12th-floor Manhattan co-op
that had been his castle for
51 years.
With stained-glass windows, gargoyles and carved
coats of arms, Mr. Aranyi’s
apartment felt a bit like a
Medieval Times restaurant.
Its unusual appearance—
even the walls resembled
stone ramparts—made for an
uphill battle when he set out
to sell the two-bedroom unit.
The saga finally concluded a
few weeks ago, when the
roughly 1,900square-foot
home sold for
$4.4 million—
far less than
the $7 million
he listed it for
in 2014.
After hundreds of
showings, a
parade of listing agents and
a co-op board
rejection, the eventual buyer
was a neighbor who collects
antique armor and weapons,
which he plans to display in
the apartment, said Gregory
Roache of Brown Harris Stevens, who took over the listing in June 2017.
Mr. Aranyi, an 84-year-old
art dealer and music lover
who fled his native Hungary
after the 1956 revolution,
first rented the apartment in
the 1960s. The home’s ornate, wood-paneled interior
reminded him of Princeton
University, where he’d studied after emigrating. He
loved throwing parties at the
apartment, and met his future wife, Theresa Llorente,
at one of them in 1990.
Guests over the years included George Soros and actor Jeremy Irons.
Mr. Aranyi was paying a
monthly rent of roughly
$2,000 about five years ago
when he got a call from the
estate of his late landlord offering to sell him the apartment. As a rent-stabilized
tenant, Mr. Aranyi would
have been very difficult to
evict, and he had little incentive to move out of the
home, which has a large terrace and overlooks Gramercy
Park. So the estate offered
him a price he was unlikely
to refuse: $630,000.
“I realized I could sell it
for a lot more than what I
had to pay for it,” he said,
and the idea of
having “some
money in my
old age” was
appealing.
So he and
Ms. Llorente
bought the
apartment and
listed it a
short time
later for $7
million with
Stephen P.
Wald Real Estate Associates.
When it didn’t sell, they
switched to the Corcoran
Group and dropped the price
to $6.5 million. Then they
tried Warburg Realty, Douglas Elliman Real Estate and
Nest Seekers International,
slowly reducing the price as
they went.
The couple was surprised
to discover that nearly every
potential buyer planned to remove the castle-like features
they loved. “That was shocking to us,” Ms. Llorente said.
What’s more, the kitchen
and two of the bathrooms
hadn’t been updated in decades. Estimates for renovating the apartment ranged
from $750,000 to $2 million,
Mr. Roache said.
When Mr. Roache took
over the listing, he convinced
Showcase your breathtaking property in the next installment of
The Wall Street Journal’s Hamptons, East End, and North Fork Special
Advertising Feature. We will continue to explore market trends,
community features, unique homes, and top sellers throughout the
region to highlight where to visit, rent, and buy this summer.
1967
Janos Aranyi rents at 44
Gramercy Park North
April 2013
Mr. Aranyi and his wife,
Theresa Llorente, buy the
apartment for $630,000
April 2014
The apartment is listed
for $7 million with Stephen P. Wald
September 2014
The apartment is listed
for $6.5 million with the
Corcoran Group
July 2015
Warburg lists the apartment for $6.35 million
August 2015
Warburg reduces the price
to $5.5 million
June 2016
Douglas Elliman lists the
apartment for $5.5 million
September 2016
Elliman reduces the price
to $5.3 million
February 2017
Nest Seekers International
lists the apartment for
$4,888,888
June 2017
Brown Harris Stevens
lists the apartment for
$4.75 million
July 2017
Brown Harris Stevens reduces the price to $3.75
million
August 2017
Unit goes into contract at
$4 million, but the co-op
board rejects the buyer
October 2017
Brown Harris Stevens relists the apartment at
$4.25 million
November 2017
Unit goes into contract
for $4.4 million
January 2018
Sale closes at $4.4 million
Issue Date: 4/27 | Close Date: 3/23 | Section: Mansion
For advertising opportunities, please contact:
Liam Jerome at 212.416.3711 | liam.jerome@dowjones.com
MEDIEVAL MEALS The 1,900-square-foot home, which overlooks Gramercy Park, eventually sold for $4.4 million.
© 2018 Dow Jones & Company, Inc. All Rights Reserved.
TALE OF A SALE
Mr. Aranyi and Ms. Llorente
that they needed to do something “drastic”—a price drop
of $1 million, from $4.75 million to $3.75 million.
A buyer materialized but
was rejected by the co-op
board. Mr. Roache relisted
the home at $4.25 million.
That’s when a neighbor
made an offer of $4.4 million, and the deal finally
closed.
The buyer, a financier who
lives primarily in New Jersey, will use the home as a
pied-à-terre. He plans to
“modernize it,” Mr. Roache
said, “but keep some of the
charm.”
“I still think,” Mr. Aranyi
said, “we sold it for too
cheap.”
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | M7
NY / NE
MANSION
FROM TOP: JENNIFER MAY FOR THE WALL STREET JOURNAL (2); JEFF LIPSKY
LUXURY AGRIHOODS
HUDSON WOODS Bill Caleo, with Campbell and Willa, left, built a $2.1 million
home in upstate New York, above, with pool, guesthouse and vegetable garden.
Continued from page M1
he added.
In Palm Springs, Calif., a defunct golf course is being planted
with 45 acres of olive trees as the
centerpiece of Miralon, a community of 1,150 homes set to break
ground this year. The olives will be
pressed into oil for residents.
Outside Charlottesville, Va., lots
at Bundoran Farm—a 2,300-acre
development called “a working
farm”—overlook apple orchards
and pastures of sheep and cows.
In upstate New York, one Hudson Valley agrihood will produce
its own artisanal goat cheese.
And herds of Belted Galloway
cows—purely for show—graze at
Cooke’s Hope in Easton, Md.,
where homes are listed from
$549,000 to $1.5 million.
Kukuiula’s farm had a modest
start as a place where homeowners could pick mangoes and
tropical flowers. It has since expanded, with 32 raised vegetable
beds, an orchard, chickens and a
new so-called superfoods garden
planted with goji berries, gotu kola
and turmeric. The bounty is free
to homeowners, who pay a onetime $50,000 membership fee and
about $26,000 in annual dues.
“Sometimes, we gotta arm
wrestle over who takes the arugula
today,” said Kukuiula’s executive
chef, Ben Takahashi, who experienced a salad-greens shortage over
the holidays. He showcases farm
produce in weekly chef’s table dinners, and hosts al fresco dinners
featuring “guest artisans,” like the
pig farmer from up the road.
Residents are provided with
rubber boots, scissors and bags to
pick their own. Other Kukuiulans
prefer to visit a refrigerator on a
clubhouse porch, stocked with
flowers, fruit, lettuces and herbs.
“I love to cook—it’s become a
passion,” said Mr. Verstappen, who
built his three-bedroom home
overlooking the ocean in 2016. (He
also has a home in Lake Tahoe,
Nev.) He walks to the farm several
times a week, and recently competed in a cook-off there.
At Hudson Woods, a 131 acrecommunity with 25 homes in New
York’s Catskills, buyers can add
numerous agrarian upgrades. For
$16,500, for example, they can get
an orchard of 10 mature fruit
trees—planted, bermed, mulched,
irrigated and fenced. For $15,500,
a master gardener will plant a 20by-30-foot garden on their property with three months of complimentary weeding and watering.
Drew Lang, the architect and
developer who created Hudson
Woods, is working with local sugar
makers for homeowners who’d like
to have their maple trees tapped
for their own limited-batch syrup.
“They can take in the experience
without going through all the
steps themselves,” Mr. Lang said.
Bill Caleo, a real-estate developer based in Brooklyn, spent
about $2.1 million to build a threebedroom weekend home with a
pool and a guesthouse on 7 acres
in Hudson Woods. His vegetable
garden will be planted this spring.
“It created this world for me
that I could envision my family being part of,” said Mr. Caleo, 41,
SILO RIDGE The Hudson Valley community is planning a cooking workshop for
kids, among other locavore amenities. Homes cost $2.5 million to $10 million.
adding that a community gardener
will tend his veggies.
At Silo Ridge—a new 800-acre
development in New York’s Hudson Valley with houses priced from
$2.5 million to $10 million—a 2acre organic garden is being marketed as a prime amenity alongside the Tom Fazio-designed golf
course and an equestrian facility.
This summer, it will add 12 beehives, a coop of heritage chickens,
and goats for yogurt, cheese and
ice cream.
Jonathan Wright, vice president
of culinary operations for Silo
Ridge developer Discovery Land
Co., also plans a cookery school
with classes for kids. “They can
grab the eggs from the chickens
and mill their own flour and make
their own pizza dough,” he said.
Heather and Andrew Zuckerman, New York City residents, are
building a five-bedroom second
home with a pool in Silo Ridge’s
Club Meadow section, where
homes average between $4.5 million and $6 million. They often
visit the greenhouse, which garden
manager Sandra LaPlace filled
with geraniums, fig trees and
herbs.
“I’m not a golfer—the garden
really sold me,” said Ms. Zuckerman, 46, an executive at an assetmanagement firm. “Sandra said,
‘You can come pick vegetables,’ ”
she recalled. “I said, ‘Yeah, but can
I come weed?’ ”
.
THE WALL STREET JOURNAL.
M8 | Friday, March 16, 2018
ADVERTISEMENT
BIG SUR, CALIFORNIA
55+ LIVING IN 3 GREAT FLORIDA LOCATIONS
ANNA MARIA SOUND, FLORIDA
Idyllic setting includes main house, 2 king, 1 queen bdrm. Full separate
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The Florida lifestyle of your dreams can be yours at Valencia, where
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Enjoy a magnificent clubhouse, resort-style pool, tennis, and much more.
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JOHN’S ISLAND – VERO BEACH, FLORIDA
NAPLES, FLORIDA
DOWNTOWN ST. PETERSBURG FLORIDA
This private, Atlantic coastal community offers an abundance of water
sports, 3 miles of pristine beach, 3 championship golf courses, 17 Har-tru
courts, pickleball, squash and Beach Club. Located near private airport &
cultural amenities, this 5BR oceanfront retreat offers 14,574± GSF, ocean
views, summer kitchen, 1st floor master suite, pool & elevator.
Minto Single-Family Estate Homes located in an area famous for
extraordinary golf communities. TwinEagles boasts not just one championship
course awarded “Best New Private Course in America” by Golf Magazine, but
two 18-hole, tour-quality courses and a spectacular 47,000 sq. ft. country
club lavished with every imaginable amenity. Best of all, golf membership
initiation fee is included with every Minto new home purchase.
Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3
blocks from the water, artfully designed townhomes now under construction
on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2
car garage, private elevator, and amazing rooftop terrace. Low HOA fees.
Walking distance to world-class restaurants, museums, shopping, parks,
marina, and Tampa Bay.
$11,500,000
From the mid $500s to over $1 million
JohnsIslandRealEstate.com
ValenciaGL.com
MintoUSA.com
From the $800’s to $900’s
OPHMintoUSA.com
www.RegentLane.com
John’s Island Real Estate Company
Minto Communities
NJR Property Investments LLC
phone: 772.231.0900
phone: 888.379.9868
phone: 727.515.5556 email: natalie@njrdevelopment.com
PENNSYLVANIA MOUNTAINS
KIAWAH ISLAND, SOUTH CAROLINA
MOUNTAIN LAKE, LAKE WALES, FLORIDA
EXECUTIVE RETREAT & SPORTSMAN’S PARADISE, GOLF, HUNTING,
FISHING & GREAT RESTAURANTS are all convenient. Abundant deer & other
wildlife. Large gracious stone & frame home on 120 private wooded acres
in an historic area in the beautiful mountains of West Central Pennsylvania.
Airport half hour away (8,000 ft. strip). Caretaker home & barns included.
Less than a 5-minute stroll from a secluded stretch of beach, the
immaculate 5-bedroom home at 51 Ocean Course enjoys privacy among the
seagulls, high-ceilinged interiors, large windows welcoming natural light, and
views of a sun-sparkled pond from three tiers of balconies. Just opposite is
land preserved in perpetuity by the Kiawah Nature Conservancy. A Kiawah
Island Club Membership is available.
Mediterranean styled two-story home (12,000 sq. ft.)with lake view
on 4.00 acres. 6 bedrooms, 5 baths, 2 half baths, 3 bay garage with apt.
overhead. Modern gourmet kitchen, Infinity Edge pool, and tennis court.
Gated community designed by Frederick Law Olmsted in 1915 and a Seth
Raynor golf course. Membership by invitation.
$2,950,000
$2,695,000
$2,500.000
wj@johnsislandrealestate.com
www.rock-ridge.com
kiawahisland.com/51-ocean
Berkshire Hathaway Real Estate
Leslie Serenyi
Kiawah Island Real Estate
Frederick J. Ryan, Broker
phone: 724.238.7600
phone: 866.312.1780
phone: 863.679.2404
leslieserenyi@thepreferredrealty.com
email: info@kiawahisland.com
fryan@mountainlakecc.com
AUSTIN, TEXAS
PARK CITY/HEBER VALLEY, UTAH
JOHN’S ISLAND – VERO BEACH, FLORIDA
Ultimate Luxury on Lake Travis – Our waterfront community boasts
estate homesites & luxury custom homes on the shoreline of Austin’s
favorite lake. Expansive views, privacy gate with concierge, day dock with
2-story observation deck, and access to a prestigious Yacht Club & Marina
make this exclusive community an opportunity you will not find again.
Build your dream mountain home in the neighborhood at the current high
point in Red Ledges, Summit Loop, and wake to this commanding view of Mt
Timpanogos or Deer Valley. As the most successful private community in the
Park City area, Red Ledges offers world class mountain, valley, water and trail
activities, all just 45 minutes from a major hub airport.
This established, Atlantic coastal community offers an abundance
of water sports, 3 miles of pristine beach, 3 championship golf courses,
17 Har-tru courts, pickleball, squash & Beach Club. Near a private airport
& cultural amenities, this remarkable 3BR retreat offers 4,864± GSF, golf
views, pool & fire pit. (Optional en-suite guest/office for $3,700,000)
$300s to $3 Million+
$515,000
$3,500,000
PeninsulaLakeTravis.com
www.RedLedges.com
The Peninsula at Rough Hollow
Loren Dickey
Red Ledges Realty
Bill Houghton
phone: 512.456.3756
phone: 877.733.5334
Info@PeninsulaLakeTravis.com
JohnsIslandRealEstate.com
John’s Island Real Estate Company
email: info@RedLedges.com
To Advertise Call: 800-366-3975
phone: 772.231.0900
wj@johnsislandrealestate.com
.
THE WALL STREET JOURNAL.
Friday, March 16, 2018 | M9
NY
Naples, Fl | $14,900,000
DarieN, CT | $7,900,000
DarieN, CT | $7,550,000
armoNk, NY | $4,800,000
WesTporT, CT | $4,599,000
WEB ID: QZZD4 — MLS#217052242
Frank Sajtar — +1 239 776 8382
WEB ID: FTJC4 — MLS#33487
Deirdre McGovern — +1 203 554 0897
WEB ID: MRNZ4 — MLS#33450
Al Filippone Associates — +1 203 979 9149
WEB ID: MDFW4 — MLS#4801897
Lauren Goldenberg — +1 914 649 8817
WEB ID: KFHW4 — MLS#170047373
Donna Beretta — +1 203 451 1540
GreeNWiCh, CT | $4,275,000
GreeNWiCh, CT | $4,199,000
WesTporT, CT | $3,995,000
NeW CaNaaN, CT | $3,398,000
DarieN, CT | $3,395,000
WEB ID: MPVW4 — MLS#101954
Maria Ruggeberg — +1 203 912 7729
WEB ID: ZGYB4 — MLS#170039370
Monica Webster — +1 203 952 5226
WEB ID: NRVZ4 — MLS#170041291
WBCH Team — +1 203 856 7479
WEB ID: ULWC4 — MLS#170050732
April & Kelly — +1 203 216 2194
WEB ID: MWOW4 — MLS#33527
Heather Raymond — +1 203 252 8645
GreeNWiCh, CT | $3,250,000
roWaYToN, CT | $2,999,999
WilToN, CT | $2,950,000
WesTporT, CT | $2,895,000
oxForD, CT | $2,529,999
WEB ID: DKAZ4 — MLS#101544
Monica Webster — +1 203 952 5226
WEB ID: XAPW4 — MLS#170045588
Marybeth Sullivan — +1 203 984 8025
WEB ID: ZHBB4 — MLS#170027789
Michelle&Company — +1 203 454 4663
WEB ID: KIMT4 — MLS#99155415
Michelle&Company — +1 203 454 4663
WEB ID: QNEC4 — MLS#170040727
Magda Ballaro — +1 203 889 8284
Chappaqua, NY | $2,275,000
roxburY, CT | $2,250,000
Chappaqua, NY | $2,100,000
FairFielD, CT | $2,000,000
WesToN, CT | $1,925,000
WEB ID: WZOB4 — MLS#4649661
Sena Baron — +1 914 602 8199
WEB ID: JHMC4 — MLS#170047137
Stacey Matthews — +1 860 868 0511
WEB ID: WFIC4 — MLS#4800720
Sena Baron — +1 914 602 8199
WEB ID: NSDD4 — MLS#170007973
WEB ID: SOTW4 — MLS#170050333
Snyder Pritchard Homes — +1 203 307 4562 Jeanne Bracken — +1 203 981 4114
Chappaqua, NY | $1,899,000
FairFielD, CT | $1,899,000
NeW CaNaaN, CT | $1,895,000
WarreN, CT | $1,895,000
Chappaqua, NY | $1,799,000
WEB ID: YYCW4 — MLS#4805376
Bonnie Golub — +1 914 645 5999
WEB ID: BCCW4 — MLS#170049344
Lois Lehman — +1 203 520 2846
WEB ID: HXPD4 — MLS#170013359
Hannelore Kaplan — +1 914 450 3880
WEB ID: SKIW4 — MLS#170031517
Stacey Matthews — +1 860 868 0511
WEB ID: LBPD4 — MLS#4730221
Sena Baron — +1 914 602 8199
raveis.luxuryportfolio.com
Chappaqua, NY | $1,765,000
sTamForD, CT | $1,595,000
Chappaqua, NY | $1,579,000
roxburY, CT | $1,550,000
sTraTForD, CT | $1,499,000
WEB ID: OWKC4 — MLS#4643172
Sena Baron — +1 914 602 8199
WEB ID: NKAW4 — MLS#170048277
Phyllis Doonan — +1 203 428 1703
WEB ID: KKUC4 — MLS#4650345
Cindy Glynn — +1 914 523 6163
WEB ID: FMBW4 — MLS#170052871
Stacey Matthews — +1 860 868 0511
WEB ID: IXQW4 — MLS#170049585
Carolyn Augur — +1 203 623 6239
NeW FairFielD, CT | $1,495,000
FairFielD, CT | $1,400,000
miromar lakes, Fl | $1,398,000
mouNT pleasaNT, NY | $1,375,000
sTamForD, CT | $1,300,000
WEB ID: XQTD4 — MLS#170005930
Angelina Valentini — +1 203 994 1988
WEB ID: HFDT4 — MLS#99165109
Stephanie Barnes — +1 203 368 8754
WEB ID: ZDAC4 — MLS#217076400
Lora Merrill — +1 239 290 9151
WEB ID: BOGC4 — MLS#4806900
WEB ID: GDVC4 — MLS#170034536
DelVecchio Scarano Team — +1 914 490 1928 Steve Anastos — +1 203 461 0153
WilToN, CT | $1,250,000
maDisoN, CT | $1,230,000
braNForD, CT | $1,150,000
GuilForD, CT | $1,100,000
easToN, CT | $1,039,000
WEB ID: TWGW4 — MLS#170052040
The FAIR Group — +1 203 984 4758
WEB ID: BNZC4 — MLS#170030672
John Shea — +1 203 767 9460
WEB ID: LFLD4 — MLS#N10236115
Pamela Kirkby — +1 203 988 8690
WEB ID: IEAW4 — MLS#170035739
Byron Lazine — +1 860 941 2755
WEB ID: KRDC4 — MLS#170050914
WBCH Team — +1 203 581 4505
©2018 Luxury Portfolio International.® Offering is subject to errors, omissions, change of price, or withdrawal without notice. All information considered reliable; however, it has been supplied by third parties and should not be relied on as accurate or complete. Equal Housing Opportunity.
.
THE WALL STREET JOURNAL.
M10 | Friday, March 16, 2018
ADVERTISEMENT
Arizona Properties
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
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THE WALL STREET JOURNAL.
Friday, March 16, 2018 | M11
NY / NE
MANSION
RELATIVE VALUES | SANDRA WARD
ONE FOR THE DOGS; IT’S THEIR TIME
ILLUSTRATION BY MIGUEL PORLAN
(L-R) HD ESTATES; FULLPACKAGEMEDIA; COURTNEY HAHN
Luxury homes for sale that have amenities for the care and entertainment of the family pet; it’s the Year of the Dog, after all
$5.495 million
$2.145 million
$6.495 million
Seattle
Two bedrooms, two bathrooms, one half-bath
Dallas
Five bedrooms, four bathrooms, one half-bath
Kiawah Island, S.C.
Three bedrooms, three bathrooms, one half-bath
This penthouse is in a building with a roof deck and dog run. The
2,842-square-foot condo has views of the Space Needle, downtown, the bay and the mountains. There are three private terraces,
one with a dining area and outdoor kitchen, a fire pit and a hot
tub. There is a separate work studio and four parking spaces.
Agent: Scott Wasner, Realogics Sotheby’s International Realty
This 6,059-square-foot house in the Bluffview neighborhood, built
in 2011, has a dog run and pet shower. Other amenities include a
pool and spa, an athletic court, a gym, a media room and a threecar garage with a Tesla charging station. There are two fireplaces
inside, one in the courtyard. The patio has a grill and fire pit.
Agent: Summit Shah, Robert Elliott and Associates
This French chateau-style house has a dog room, dog-washing
station and fenced dog run. The living room has a stone floor and
gas-log masonry fireplace. French doors lead to a rear loggia. An
elevator services the four floors. The master suite overlooks the
pool. There is a two-bedroom guest cottage with garage.
Agent: Pam Harrington, Pam Harrington Exclusives
ADVERTISEMENT
Distinctive Properties
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
CALIFORNIA
FLORIDA
NEW YORK
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THE WALL STREET JOURNAL.
M12 | Friday, March 16, 2018
MANSION
AGENTS’ GREAT DEALS—FOR THEMSELVES
FROM TOP: MICHAL CZERWONKA FOR THE WALL STREET JOURNAL (3); STEPHEN VOSS FOR THE WALL STREET JOURNAL (2); JENNIFER SILVERBERG FOR THE WALL STREET JOURNAL (2)
Continued from page M1
and often benefit when it comes
time to sell.
Unlike doctors or lawyers, who
should not treat or represent
themselves, many real-estate professionals buy and sell their own
homes. Under the code of ethics
and standards of practice of the
National Association of Realtors,
they are required to disclose personal interest in a sale or purchase.
Beyond that, there are few restrictions, and agents’ houses are often
among the finest in the area.
Susie Johnson, an agent with
Coldwell Banker Gundaker in the
St. Louis metro area, kept close
tabs on a listing in suburban Chesterfield, Mo., for nearly a year. She
predicted a series of price reductions before pouncing after the
slow, winter selling season: She
‘Any real estate I ever
purchase, I purchase with
an eye to resale.’
—New York City agent Darren Sukenik
and her husband, Art, bought the
six-bedroom home in 2010 for $1.3
million, well below the initial asking price of $1.6 million.
Ms. Johnson, 65, said she knew
the Chesterfield real-estate market
would gain in value because it had
been recently zoned for retail development.
“I knew at that time the area
was going to be a hub,” she says,
adding that she now lives less
than a mile from a Whole Foods
Market, a Starbucks and a waterfall with ducks that she visits with
her grandchildren.
Real-estate agents have an edge
over regular home buyers, she
feels, in “really reading the market, really knowing when the timing is good and when you can get
more house for the money.”
Billy Rose, founder and president of The Agency, a boutique
real-estate brokerage firm in Beverly Hills, Calif., likes his 1940
Streamline Moderne house so
much that he practically bought it
twice. He first purchased the distinctive 4,200-square-foot, fivebedroom home in the Westwood
Hills in 2003 for $1.2 million because he loved its stately, white
and glass architecture, light-filled
rooms and lush backyard.
Mr. Rose renovated the house
and raised his family there for
about a decade, when his marriage
fell apart. After another few years,
in which his former wife lived in
the home, Mr. Rose renovated
again to sell the house, asking an
agent from his firm to handle the
$3.95 million listing. At the first
open house last year, Mr. Rose
joined the agent to get a feel for
prospective buyers. Instead, he fell
back in love with the property. He
decided to keep it, refinance it to
buy out his former wife and move
back in. At that point, three prospective buyers had entered a bidding war that pushed the sales
price to over $4 million.
In the end, Mr. Rose removed
the listing but still had to pay his
ex-wife the amount she would
have received had they sold to the
highest bidder and a commission
to the agent for his time. He is
now renovating for the third time,
updating amenities while carefully
preserving period features—in
case he ever does sell.
Knowing what sells guides realestate professionals’ own design
decisions. Darren Sukenik, an estate agent with Douglas Elliman in
New York City, lives in a stylish
2,500-square-foot, three-bedroom
West Village condo with his husband, Eric Rogen, and their fouryear-old dog, Hamilton. Walls are
white and floors are black, a timeless palette that Mr. Sukenik says
sells better than vibrant or genderspecific colors. Walls are polished
plaster because lower Manhattan
home buyers dislike wallpaper, according to Mr. Sukenik.
“I practice what I preach,” says
Mr. Sukenik, 46. “Any real estate I
ever purchase, I purchase with an
eye to resale.”
Mr. Sukenik bought a condo in
the building 12 years ago for $1.4
million and later combined it with
an adjacent unit he bought in 2015
for $2.5 million. With both transactions and the renovation, he
benefited from professional instinct and connections. Mr. Sukenik bought the first apartment
preconstruction, predicting that
the southern edge of the West Vil-
BREEZY Clockwise from top left, the dining room, courtyard and entryway of Billy Rose’s 1940s
home in the Westwood area of Los Angeles. The 4,200-square-foot home has five bedrooms.
COZY Michael Rankin and Mark Green’s 7,000-square-foot home in the historic Georgetown neighborhood of Washington, D.C., was built in 1903. Above, the kitchen and family room.
SUNNY An elaborate staircase leads, left, to a loft in Art and Susie Johnson’s six-bedroom home in
the St. Louis metro area. Above, the stone fireplace in the living room.
lage--“fringy” at the time, he recalls—would become an upmarket
area. He also felt his would be one
of few full-service condominium
buildings in the area, giving it a
premium in the market.
Beverly Hills, Calif.-based agent
Pate Stevens knows so much about
construction that he could question and overrule the contractor
when building his weekend home
last year. In December, Mr. Stevens, who sells luxury properties
for Nourmand & Associates in Los
Angeles, completed a 3,200square-foot, Midcentury Modern
home on a Country Club golf
course in Palm Springs.
Mr. Stevens, a widowed father
of two girls, 10-year-old Tyla and
8-year-old London, built the threebedroom house to give the children a place to play outside and
ride their bikes or Barbie golf
carts. He loved the mountain views
of the 14,000-square-foot lot and
the floor plan by Horsham, Pa.based home builder Toll Brothers.
But after a rainstorm, when the
pool did not drain and the spa
stopped working, Mr. Stevens says
he persuaded the contractor to install a release valve, rather than a
submersible pump, which solved
the problem. Mr. Stevens, 54, also
corrected a design flaw in the overhang above his large back patio, diverting the drainage to the side of
the house to prevent water from
hitting and staining the deck.
Helped by a background in interior
design and two decades in real estate, Mr. Stevens asked for an itemized breakdown of building costs
for the $1 million home. He negotiated prices of some items and
found lower-priced alternatives for
others, including the white-tiled
wall around his fireplace.
“One thing about being a realestate agent,” he says, “is knowing
the cost of things.”
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